Case Studies
Whether you are seeking value-priced or Class A office space, medical or dental space, a warehouse or distribution facility, retail locations, investment property, or an expert opinion, I am uniquely qualified to undertake and complete the assignment in an efficient, effective and economical manner.
Below are links to the diverse types of transactions I have handled along with the challenges and results:
- Ongoing Client Questions
- Medical Lease
- Multiple Office Leases (Over a 10-Year Period)
- Lease Renegotiation (Attorney Referral)
- Lease Extension and Expansion
- Lease Renewal (Consultant)
- Investment (Multi-tenant Office)
- Investment (Neighborhood Shopping Center)
- Due Diligence (Investment Properties)
- Retail Leases (Multiple Locations)
- Warehouse (Dock-high Distribution)
- Owner-User Purchase
- Sublease
- Relocation (Landlord Non-negotiable)
- Relocation (Landlord forced)
- Expansion (Outside of Arizona)
- Referral to Attorney
- Broker Opinion of Value
- Professional Standard of Care Opinions
- Expert Consultant and Trial Witness
- Tenant-Landlord Dispute (Constructive Eviction)
Ongoing Client Questions
Client Types: Office, Medical, Industrial, Retail, Investment
Sources: Existing and potential clients, attorneys, accountants, financial planners, and other professionals.
Details of Assignment: Ongoing questions
Time Required: I devote as much time as is needed to address and answer questions my clients, potential clients, and other professionals may have. In this regard, I have completed over 2,700 commercial transactions, leased space for my business, own income-producing commercial property, and authored numerous articles on a wide variety of topics related to leasing, buying and operating commercial real estate.
How Compensated: There are no charges for assistance to my Clients with questions about their leases or investments. Likewise, I generally do not charge potential clients and professionals for insight concerning questions they may have that can be answered over the telephone.
Medical Lease
Client Type: Medical (Podiatrist)
Referral Source: The owner of a commercial real estate firm referred me to his personal podiatrist.
Details of Assignment: Identify suitable buildings in north Phoenix to establish a podiatry practice.
Challenges: Client was seeking a substantial free rent period, first floor location, close to main entrance and visitor parking, long glass lines, and space delivered in a turnkey condition.
Strategies and Tactics Used: Prepared and updated research reports, personally arranged access and conducted tours, negotiated simultaneously with multiple landlords.
Results: Successfully negotiated for space in a Class B+, largely medical building owned by an institutional landlord able to meet all of this physician’s requirements. Achieved below market rental rates with substantial leasing concessions, including free rent, turnkey tenant improvements and options to extend lease.
Time Required: 18 months (from initial client meeting to lease execution).
How Compensated: Shared in commissions paid to listing agents by landlord.
Multiple Office Leases (Over a 10-Year Period)
Client Type: Logistics firm (three transactions over a 10-year period)
Referral Source: Residential real estate agent referred a family friend seeking to start their own logistics business.
Details of Assignment: Initially, to identify value-priced office space to launch business. Client was seeking Class C or B building, move-in ready suite, east Phoenix/central Scottsdale, close to freeway.
Challenges: Client was a start-up with limited budget.
Strategies and Tactics Used: Prepared and updated research reports, personally arranged access and conducted tours, negotiated simultaneously with multiple landlords.
Results: Successfully negotiated inexpensive space in a Class B- office complex. As business grew, relocated Client to larger space in a similar, better located building. As business flourished relocated Client again to a Class A building with turnkey buildout and free rent period. Achieved below market rental rates with substantial leasing concessions, including free rent and options to extend.
Time Required: This business has been a Client for over ten (10) years.
How Compensated: Shared in commissions paid to listing agents by landlord.
Lease Renegotiation (Attorney Referral)
Client Type: Established service provider
Referral Source: Client’s attorney
Details of Assignment: Client needed to reduce its operating expenses and was contemplating bankruptcy.
Challenges: Client had several years remaining on its lease which was personally guaranteed.
Strategies and Tactics Used: Demonstrated to landlord tenant was seeking rent relief due to effects of depressed economy.
Results: Reduced base rental rate by approx. 20% for remainder of lease term.
Time Required: 3 months
How Compensated: Fee paid by Client.
Lease Extension and Expansion
Client Type: Established Medical Practice
Referral Source: Advertising
Details of Assignment: Over a six-year period, relocated physician to a less expensive building and subsequently negotiated lease extension/expansion 12 months prior to lease expiration.
Challenges: Client desired to extend its lease and expand into adjacent space.
Strategies and Tactics Used: Started negotiations 19 months prior to lease expiration date. When lease was within 12 months of its expiration date suggested to landlord that, depending on the economics we were able to negotiate, Client would either extend/expand in its current location or relocate. As Client’s medical space was highly specialized, landlord recognized that it would incur substantial expense to re-tenant the space, and wisely acquiesced to terms acceptable to Client and which were available elsewhere.
Results: Negotiated below market lease rates and turnkey medical improvements on initial lease as well as on the extension and expansion.
Time Required: Initial lease: 15 months. Extension/expansion: 7 months
How Compensated: Shared in commissions paid by landlord.
Lease Renewal (Consultant)
Client Type: Industrial
Referral Source: Advertising
Details of Assignment: Advise client on market rental rates and terms.
Challenges: Landlord refused to negotiate per the terms set forth in the Lease renewal option provision, which established the option rental rate as the market rate for similarly located space, considering concessions, improvements and commissions that were generally available in the area. Landlord proposed terms based on its advertised asking rates for new tenants and cited asking rates for properties not comparable to the subject space.
Strategies and Tactics Used: I was asked to advise tenant (‘shadow’ negotiate) on how to respond to landlord’s proposals, provide comparable market reports and prepare counter proposals.
Results: Client was able to achieve a substantial reduction from landlord’s original terms to extend the lease and obtain an additional option to renew.
Time Required: 6 months
How Compensated: Fee paid by Client.
Investment (Multi-tenant Office)
Client Type: Investor
Referral Source: Advertising
Details of Assignment: Locate income producing investment property and negotiate purchase.
Challenges: Client sought multi-tenant office property with excess land on major arterial.
Strategies and Tactics Used: Patience. To clarify, Seller was initially resolute in its asking price, which was 20% above our offer price. We wisely waited and, almost a year later, the Seller contacted us to discuss reopening negotiations.
Results: Client purchased ideal building (with excess land) for approx. 25% below asking price, stabilized tenant roster and sold in three years for an approx. 35% profit.
Time Required: 15 months
How Compensated: Shared in commissions paid by Seller.
Investment (Neighborhood Shopping Center)
Client Type: Investor
Referral Source: Advertising
Details of Assignment: Locate income producing investment property and negotiate purchase.
Challenges: Client sought to acquire a neighborhood shopping center at below market price.
Strategies and Tactics Used: Tracked suitable properties in their target areas and identified a neighborhood center that has just fallen out of escrow. Sensing the Seller now had an urgency to divest themselves from the property we were able to negotiate favorable terms and conditions.
Results: Client was able to purchase a well-located, newer, eight (8) tenant neighborhood shopping center with a stabilized tenant roster for approx. 15% below the asking price.
Time Required: 9 months
How Compensated: Shared in commissions paid by Seller.
Due Diligence (Investment Properties)
Client Type: Investors
Referral Source: Clients and advertising
Details of Assignment: Perform due diligence on shopping centers, office buildings and warehouses.
Challenges: Obtaining accurate rent rolls, complete leases, maintenance and repair records, and signed estoppel certificates.
Strategies and Tactics Used: Requested and reviewed all pertinent documents for accuracy and hidden incentives used to induce tenants to sign leases. Also referred competent attorneys, inspectors, and contractors to Clients and monitored the work product of these and other professionals.
Results: In instances where deferred maintenance and lease irregularities were discovered I negotiated a further reduction in the purchase price. If significant problems were uncovered, I handled formal withdrawal from the transaction in a timely manner - recovering the entire earnest money deposit for my clients.
Time Required: 30-60 days.
How Compensated: Shared commissions with listing agents on closed transactions.
Retail Leases (Multiple locations)
Client Type: Retail (Corporate office and multiple franchise locations)
Referral Source: Advertising
Details of Assignment: Locate corporate office for franchisor and represent 10 franchisees in securing locations.
Challenges: Client and concept was new to Arizona. Franchisees were on extremely tight budgets.
Strategies and Tactics Used: Helped franchisor establish geographic territories for franchisees.
Results: Represented franchisor with its corporate office and flagship retail location and represented 11 franchisees throughout metro Phoenix secure retail leases with below market rental rates, favorable terms, tenant improvements, warranties, and renewal options.
Time Required: 24 months
How Compensated: Shared in commissions paid by various landlords.
Warehouse (Dock-high Distribution)
Client Type: National manufacturer
Referral Source: Advertising
Details of Assignment: Locate approx. 400,000 SF of dock high distribution facility close to main manufacturing plant location.
Challenges: Proximity to manufacturing plant severely limited suitable properties.
Strategies and Tactics Used: Researched target area for advertised and unadvertised space.
Results: Located a suitably located warehouse that was coming available but not yet advertised.
Time Required: 45 days
How Compensated: Commission paid by landlord.
Owner-User Purchase
Client Type: Industrial
Referral Source: CPA referral
Details of Assignment: Locate newer air-conditioned warehouse with secured yard and 20% office in North Phoenix.
Challenges: Client’s lease was due to expire. Listing agent for target property was unresponsive.
Strategies and Tactics Used: Discovered the listing had expired several months earlier but the agent failed to remove its signage or obtain a listing extension. Researched ownership and contacted owner directly.
Results: Landlord provided us with access and a deal was completed.
Time Required: 6 months
How Compensated: Commission paid by Seller.
Sublease
Client Type: Surgical group
Referral Source: Attorney familiar with my work
Details of Assignment: The assignment began as a request by the Client’s attorney to review and opine on the economic terms the surgical group had negotiated for space in a medical building, and to attempt negotiating more favorable terms.
Challenges: The surgical group’s lease was due to expire in 45 days, so time was of the essence. They had been solicited by the agent that was listing space in a nearby medical building, who was purportedly acting as a dual agent (where he was representing and advising both tenant and landlord). The space under consideration was formerly a dental office and required a complete remodel, which would have been costly and taken a minimum of 6 months. The surgical group was poised to sign a lease and try to extend their current lease for several months.
Strategies and Tactics Used: Coincidentally, I had recently completed negotiations for another Client in this building and was aware of terms and concessions available to a tenant with experienced representation, which were considerably more favorable than those offered to the surgical group. I simultaneously negotiated more favorable terms on the subject space and researched the area for suitable space available for lease or sublease.
Results: The research paid off. I was able to identify move-in ready medical space elsewhere being offered for sublease at terms more favorable to my Client. We were able to finalize a sublease and occupy the space within the target timeframe.
Time Required: 35 days
How Compensated: Shared commissions paid to listing agents by master tenant.
Relocation (Landlord was Non-negotiable)
Client Type: Medical (Veterinarian)
Referral Source: Mortgage lender familiar with my work
Details of Assignment: Negotiate lease renewal terms for an established veterinary practice.
Challenges: Lease was due to expire in 60 days. Landlord was resolute regarding terms to extend the lease, which included Client leasing (and improving) more space than was required to operate its veterinarian practice. Client was seeking turnkey space on the first floor with prominent building signage and direct access to the parking lot.
Strategies and Tactics Used: Began the assignment by negotiating a 90-day lease extension at no increase in rental rate. Simultaneously researched the target area for suitable office space whose owner would deliver a turnkey space at terms favorable to my Client.
Results: Identified a newly constructed building in the target area whose ownership had the ability to deliver a turnkey veterinarian facility meeting all my Client’s requirements at a rental rate approx. 20% lower than he would have been required to pay to remain a tenant at his current location.
Time Required: 97 days
How Compensated: Shared commission paid to listing agent by building owner.
Relocation (Landlord Forced)
Client Type: Software development firm, Class A office building
Referral Source: Client
Details of Assignment: Landlord exercised the relocation provision of lease.
Challenges: Client did not consider the proposed substitute suite acceptable. Further, the moving expenses landlord was willing to pay were far short of the actual cost to properly outfit the new space.
Strategies and Tactics Used: I had negotiated the original lease for the Client and specified that any substitute premises must be substantially similar to the original suite, including size, location within the building and improvements. The Client’s suite was situated on the corner of an upper floor of the building with two long glass walls and had a significant amount of specialty wiring, a full kitchen, built-in desks, and cabinetry.
Results: After many months of negotiations ownership agreed to create an identical office with long glass lines on an upper floor of an adjacent building and pay all moving and set up/outfitting expenses. In addition, additional free rent was granted to compensate the tenant for the disruption this move caused to the operation its business. Of note is that the lease term was not required to be extended.
Time Required: 9 months
How Compensated: No charge for continued service to my Client.
Expansion (Outside of Arizona)
Client Type: Industrial Client seeking to expand out-of-state (Texas)
Referral Source: Existing Client
Details of Assignment: Client was expanding its operations in Dallas, Texas and wanted a referral to a person experienced in commercial tenant representation.
Challenges: I am not licensed in Texas nor do I have access to comprehensive information about industrial space for lease in Dallas.
Strategies and Tactics Used: Contacted the Dallas CCIM chapter and inquired about experienced industrial agents that specialize in industrial tenant representation.
Results: Received recommendations to three CCIMs. Researched each person and interviewed them over the telephone, explaining the Client’s requirements and asking questions to determine their experience and professional standards. Selected the person that best met my Clients needs and passed along the referral to them. They connected and the Dallas CCIM was able to accomplish the task in a timely, efficient, and economical manner.
Time Required: 4 days
How Compensated: The Dallas CCIM offered to share a portion of the commission with me.
Referral to Attorney
Client Type: Retail Client
Referral Source: Advertising
Details of Assignment: Client sought advice regarding an unexpected invoice for over $130,000.00 received from their new landlord related to percentage rents not billed over a 10-year period.
Challenges: My sense was that the landlord may have waived any right to demand at least a portion of the amount in question. However, as I am not an attorney, I could not provide legal advice.
Strategies and Tactics Used: Referred Client to an attorney I am familiar with having expertise in commercial real estate law (in this instance, ‘waiver’).
Results: Client worked through the attorney and was able to reduce amount due by 70%.
Time Required: 1 hour
How Compensated: I do not charge for referrals to professionals that can help my clients, which includes attorneys, accountants, contractors, architects, and tradespeople of most every description.
Broker Opinion of Value
Client Type: Out-of-state ownership group
Referral Source: Owner of building with whom I had recently completed a lease.
Details of Assignment: Ownership group was preparing an estate plan and requested a professional opinion of value of a building they owned.
Challenges: Obtaining data on recent sales and current asking prices on comparable properties.
Strategies and Tactics Used: I compiled recent sales of comparable properties and current asking prices and opined on factors that would reasonably affect the value of the subject building.
Results: Authored report with supporting documentation acceptable to Client’s CPA.
Time Required: 5 days
How Compensated: Fee for services paid by Client.
Professional Standard of Care Opinions
Client Type: Plaintiff in a lawsuit
Referral Source: Plaintiff’s attorney
Details of Assignment: Review transaction and opine on standard of care of all person’s involved and suggest remedies.
Challenges: Plaintiff was a knowledgeable developer and both agents were members of large commercial real estate organizations.
Strategies and Tactics Used: Objectively reviewed entire file and considered the duties and responsibilities of all persons involved in the transaction.
Results: Found persons involved culpable to various degrees. Explained my reasoning and suggested how blame should be apportioned.
Time Required: 3 days
How Compensated: Retained through Plaintiff’s attorney, who paid a fee.
Expert Consultant and Trial Witness
Client Type: Expert Consultant/Trial Witness
Referral Source: Law firm
Details of Assignment: Analyze landlord’s damage calculations, its conduct in releasing the space, and testify at trial.
Challenges: Client had dissolved its law practice and vacated Class A office space mid-lease. Landlord was claiming damages attributable to default penalties and costs it purportedly incurred to secure a replacement tenant whose lease term far exceeded remaining lease term of my Client.
Strategies and Tactics Used: Produced calculations to help clarify how damages should be determined per the Lease Agreement and provided trial testimony on reasonable standards of care landlord and its agents should be expected to perform.
Results: Demonstrated to Court why damage calculations were far greater than the amounts stipulated in Lease Agreement and testified on generally accepted procedures landlord’s agents should have been expected to use to secure a replacement tenant.
Time Required: 18 months
How Compensated: Fee for services paid by Client.
Tenant-Landlord Dispute (Constructive Eviction)
Client Type: Office
Referral Source: Client
Details of Assignment: Client seeking early termination of full-service office space with one year of the three-year lease remaining.
Challenges: Constructive eviction matter related to continuously inoperative HVAC and electricity causing significant disruption to my Clients business.
Strategies and Tactics Used: Wrote and called landlord requesting status of repairs. When it became clear that satisfactory repairs could not be made, I formally requested the early termination of the lease with no financial penalty to Client.
Results: Early termination granted after two and a half months of negotiations.
Time Required: 75 days
How Compensated: No charge. Assisting my Clients with disputes such as this is part of my continuous service.
