An Interesting Trend Emerging
Gregg Cohen - Corporate Real Estate Specialist
At Cresa, I help companies with their real estate
Word count: 517 words, 3 minutes
One of the most interesting themes over the last month has been the increased number of early renewals being done by companies across the country. In the last month, I’ve read multiple headlines like this: 'Takeda renews Boston lease almost half a decade early'. Not only have I read about this but I’ve analyzed recent leases signed here in New York City where the LL has not only entertained, but agreed to, very early (3-5 years ahead of a lease expiration) renewals. In many cases this has resulted in restructuring current leases to lower companies’ rents immediately, as well as applying free rent now. So, the question is 'Why?' Several reasons why it’s a win/ win: For tenants: A. Reducing future rent obligations plus potentially reducing their current rent?obligation. B. Improving near-term cash flow for their business with future free rent being?applied now to free up rent payments to fund operations or invest in the business. C. Reducing future potential business disruptions by securing space. For landlords: A. Securing future cash flow for their building. B. Removing the risk of future vacant space which would be costly due to potential?vacancy, lost rental income, and large capital expenditures to redo a space/?reconfigure a space for a new user. Very interesting and something to keep an eye on as we move forward this year
Things I'm Reading
Remember that promise I made? To read one book a month. As March comes to an?end, I wanted to share the latest book I finished. The One ?? Thing by Gary Keller I liked it but didn’t love it. Makes a ton of sense. The more you have on your plate to distract you the more challenging it becomes to accomplish things. If you have too?many goals, it’s less likely any of them will get done. It’s about saying no and?respecting your own time. The biggest takeaway for me: continuously asking the question — “What’s the one?thing I can do, such that by doing it, everything else will be easier or unnecessary?” By asking that, you can focus on the one thing that will help you move towards your big goal/objective. Thanks ?? for the reading recommendations to help for April?- December. So far, they are: Barking up the Wrong Tree by Eric Barker Outliers by Malcolm Gladwell The Old Man and the Sea by Ernest Hemingway Clear Thinking by Shane Parrish Hidden Potential by Adam Grant Outlive by Peter Attia Flip The Script by Oren Klaff Unbroken by Lauren Hillenbrand Magic of Believing by Claude Bristol The Monk Who Sold His Ferrari by Robin Sharma What would you add to the list? ?? Let me know!
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Here are some articles I've been reading that I highly recommend:
NYC landlords luring workers to offices with fancy perks: Would you head back to the office if your landlord offered pickleball, golf simulators, arcade games, and gourmet food?
New on the Podcast
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Don Gelestino: The Power of Grit and Grind Listen to Conversations with Cohen on?Apple Podcasts?or?Spotify?or check out my NEW podcast, Real Estate Unplugged on?Apple Podcasts?or?Spotify.? Prefer video??You can watch me here on?YouTube.?
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?Gregg Cohen? ?
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