Tenant Representation

Leasing

LORICO helps tenants meet their objectives in various national markets and locations. LORICO analyzes each tenant’s business objectives and matches these goals with the optimal real estate solution. The scope of services for relocations, consolidations, subleases, acquisitions, and dispositions include strategic planning, demographic and site consulting, comparative financial analysis, construction, and post-occupancy services. Tenant representation services further include:

  • Initiation of landlord negotiations
  • Property positioning and marketing
  • Document preparation and distribution
  • Offer solicitation and review
  • Contract negotiation and execution

Lease Restructuring

LORICO provides lease restructuring services for tenants, providing opportunities to reduce the tenants operating costs. LORICO, on tenant’s behalf, will seek to identify opportunities to:

  • Reduce base rent and additional rent obligations
  • Obtain a rent free period
  • Secure certainty on future rent reviews
  • Amend break option clauses
  • Remove restrictive user, exclusive, and alienation clauses
  • Improve other tenant obligations such as service charge contributions
  • Procure fixed rate renewal and extension options
  • Cap/control service changes and rental escalations
  • Amend assignment and subleasing clauses

Sale-Leaseback Financing

LORICO is particularly skilled in negotiating, planning and closing sale-leaseback transactions as an alternative to mortgage financing, offering professional assistance based upon clients objectives. Many types of property may be financed by sale-leaseback arrangements such as commercial buildings, retail buildings, corporate offices and headquarter buildings, research and development facilities, industrial warehouses and manufacturing plants. A sale-leaseback transaction is a capital management tool that allows clients to use and control essential real estate without employing vast sums of debt and equity capital in an illiquid asset class.

LORICO assists its clients in recognizing the balance sheet benefits of a sale-leaseback transaction to:

  • Unlock capital trapped in under-performing real estate
  • Release cash that is tied up in real estate which can be deployed elsewhere for growth, RandD, expansion and acquisitions
  • Maintain operational control of the property while not owning it
  • Eliminate existing long term mortgage debt, thus improving the balance sheet
  • Access to more cash than through a mortgage (100% LTV vs. 60%-70%)
  • Provide longer-term capital (15-25 years) than is available from traditional debt sources
  • Come at a cost comparable to debt financing and substantially less than the weighted average cost of capital
  • Result in off-balance sheet treatment for generally accepted accounting principles (GAAP) purposes