Incentives Matter, Even in renwals
Client: MTech Systems
Address: South Terraces, 115 Perimeter Center Pl. NE, Suite 845, Atlanta, GA 30346
Type: Office Lease Renewal
Wildmor Services Represented: Tenant Representation
The Challenge:
MTech Systems has experienced an increase in their number of remote and hybrid workers over the past several years, resulting in a need for less office space moving forward. They also required significant tenant improvement in their space to reflect their revised needs. MTech was one year out from their lease expiration when we began the process of exploring the market for other options, as well as initiating conversations with the landlord at South Terraces about a space reduction and renewal. While MTech’s preference was to renew in place with a smaller footprint, creating an atmosphere of competition in the market was crucial to achieving optimal results. Beginning the search at least a year before expiration was an essential component in our process.
The Solution:
Wildmor toured MTech to multiple buildings in the Central Perimeter submarket, creating leverage with the South Terraces landlord, MetLife, Inc. This resulted in a competitive renewal rate, free rent, and above-market tenant improvement allowance, eliminating any out-of-pocket costs to our client.
Our negotiations also resulted in one-third of their tenant improvement allowance being convertible to free rent. MTech was also forgiven the remaining 8-month rent of their current term on the space they were giving back. This resulted in a welcome early overhead cost reduction for MTech. While MTech stopped paying rent on their give-back space 8 months early, they were permitted to continue using that space while the buildout was completed, allowing critical flexibility.
The Wildmor team was able to address the challenges stemming from MTech’s need for an office space reduction and upgrade to their current layout and finishes. The result for the client was space in the building of their choice with competitive economics and concessions, positioning them to move forward efficiently with a workspace that meets their changing needs.
scope of services:
Lease Renewal
Incentive Negotaitions
