Commercial Lease Negotiation
Hilco Real Estate’s lease restructuring program is a unique and targeted approach to optimizing leased real estate assets. Engaging Hilco will produce significant benefits not only to companies in transition but also for those who simply want to reduce their occupancy expense structure. Lease repositioning and advisory solutions target all forms of leasehold obligations, including rent reduction, lease renewal, assignment /sublease, or lease termination.
Hilco has successfully mitigated lease-related financial obligations on over 40,000 leases, resulting in billions of dollars in savings for our clients. We are focused on ways to lower real estate costs and maximize noneconomic advantages in leases, utilizing a four-step process to achieve the best results for our clients:
- Conduct a (complimentary) comprehensive lease portfolio analysis to identify opportunities
- Structure a model for each lease that defines tenant advantages and landlord circumstances
- Craft a message, specific to each lease and landlord, that sets forth desired restructuring / renewal / disposition concessions
- Present to each landlord, negotiate in good faith, report results to the client, and, upon approval, facilitate execution of documents for our client
Recent lease positioning engagements include:
- Hilco is a third-party real estate firm for a large, healthy coffeehouse chain and has successfully renewed/restructured 3,000+ leased locations throughout the United States and Canada, saving the company over $100 million, including critical noneconomic provisions within countless leases.
- Hilco successfully restructred the corporate office headquarters lease plus 18 additional leased locations nationwide for a private publishing client as part of a downsizing of their manufacturing operations. Millions of dollars in cost savings were generated for the company and its new private equity owners.
- For a restaurant chain with more than 125 locations nationwide, Hilco generated $25 million in sales proceeds from the disposition of non-core owned locations and saved the company $10+ million via negotiated lease restructures.
- For an international fashion retailer, Hilco completed an analysis and lease repositioning project on a portfolio of 500+ retail stores in conjunction with their corporate restructuring and recapitalization. In excess of $25 million in savings was secured on behalf of this mall-based retailer.
The clients we serve include retail, restaurant, office, and industrial concerns that may be closing underperforming facilities or consolidating or streamlining their organization. Many of our clients are healthy companies who are focused simply on lowering their real estate costs and/or securing value.
If you are looking to realize value and have locations that may be candidates for lease restructuring/repositioning, it begins with a preliminary analysis of your portfolio. Contact the Hilco Real Estate team at 847.714.1288.
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