As commercial real estate for most companies is a "necessary evil" and not a revenue source or an investment, CRA's clients have relied on CRA to dispose of owned and leased properties. CRA has experience in sales/leaseback transactions of owner occupied property and due to the recent downturn in the economy, CRA has extensive experience in subleasing and negotiating early termination of leases.

• Owner Occupant Property Sales / Sales Lease Backs:
• Disposition of non-performing asset.
• Removal of the books.
• Obtain funds to improve facility for updated use.
• Subleasing:
• To be successful in subleasing:
• The subject lease must first be analyzed to verify all relevant facts.
• The economics and concession package must be properly established.
• Marketing materials must be distributed to brokers and tenants.
• Typical subleasing errors or difficulties:
• Economic and/or timing expectations are not established or accomplished.
• Landlord consent not requested or obtained.
• Prospective subtenants fail to understand the full economic obligations and withdraw at the last minute from negotiations.
• Subleases do not conform to the master lease or contain conflicting provisions or errors.
• Subleases do not properly protect the sublandlord.
• Construction estimates are underestimated.
• Sublandlords become obligated for costly restoration requirements resulting from construction performed for or by the subtenant.
• Building code violations often result when subleasing only a portion of a premises.
• Subtenants fail or are unable to obtain the insurance required under the master lease.
• Sublandlords do not monitor activities of subtenants and incur additional liability, particularly if subtenant defaults and does not have funds to cure default activity.
• Sublandlords often fail to negotiate a termination of the lease in lieu of entering into a sublease.
• Early Lease Termination:
  • CRA has extensive experience with negotiating favorable termination options into the initial Lease document, options which can later play a vital role in either removing a tenant's need to sublease or creating leverage for the tenant to terminate early in lieu of entering into a sublease.
  • Termination Options are more than minimizing length of term, it is a mechanism to allow for the following:
• Lease term flexibility and options of reducing late term economics.
• Creating leverage for late term negotiations prior to renewal.
• And Typical lease termination negotiation errors.
• Not establishing clear criteria for the termination.
• Not establishing or finalizing the maximum cost to terminate.
• Not clarifying the deadline date.
• Not tracking the deadline date for submittal of termination notice or payment.