OVERVIEW
Phillips Architecture celebrated its 30th anniversary in 2019 and is a well-respected commercial architecture firm with deep Triangle roots. In previous lease renewals and relocations, they had negotiated directly with their Landlord due to the nature of their business and relationships within the commercial real estate industry. In fact, Phillips Architecture has and continues to be a Landlord’s vendor on many projects. After their office building sold, RCR proactively reached out to see if they had an upcoming need. RCR met with Phillips Architecture and learned they had less than two (2) years remaining on their lease. However, they had a portion of their space that needed to be reconfigured as soon as possible. This was the first time that all partners of Phillips Architecture decided to engage a tenant representative to advise on negotiations with their Landlord and RCR was honored to be selected.
RESULTS
After abstracting the original lease, RCR submitted a Request for Proposal to the Landlord outlining new business terms through a potential lease term extension. Simultaneously, RCR obtained recent lease comparables internally and through other active brokers to create the needed leverage for negotiations. It also helped that in the last twelve (12) months, RCR had advised clients on transactions totaling 101,000 SF in North Raleigh alone. RCR went to work and negotiated a lease renewal which offered a present day tenant improvement allowance, rent abatement and removal of an existing lease clause relating to the Landlord’s right to relocate. Additionally, Phillips Architecture now has the right to record a memorandum of lease which further protects their rights on the space in the event another building sale occurs.