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As seen in
May 2, 2001
POST FOCUS ON COMMERCIAL REAL ESTATE
by LOIS WEISS
Some brokers think the flailing economy and profusion of below-market
sublease space means its time to nudge building owners toward
taking a little less.
James S. Meiskin, president of Plymouth
Partners says his firm is getting hired for lease restructurings.
He represented an investment bank on Wall Street that used the
dying dot-coms to leverage an early renewal and rent reduction.
The firm was paying an above-market rent of $37 a foot for its
10,000 square feet and had three years left on its lease. Under
the new 10-year lease, the tenant pays $32 a foot for the next
five years, and $37 a foot for the final five. They also got
three months free rent and $20 a foot toward freshening the
space.
"The owner had to give up a little to keep us in the building
for the next 10 years," said Meiskin. "It was more cost efficient
to keep this tenant in place than to worry about losing them
three years from now."
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