COMMERCE BANK

Tenant Representation

Lease Restructure & Renewal | Edina, MN

Commerce Bank selected Latitude Real Estate Advisors to provide tenant representation services as the Bank evaluated renewal and/or relocation options for its Edina location. LREA managed the transaction process and resources to most effectively determine the best solution, achieving Commerce Bank’s objectives.

APPROACH

• A comprehensive survey was conducted of the South suburban market to identify possible relocation alternatives.
• The client specifically required easily accessible first-floor space.
• LREA also leveraged its Project Management practice group to complete a use assessment to assist the client in maximizing its existing space and identify opportunities to accommodate future growth.
• With competitive market data in hand, LREA approached the Landlord’s representative to initiate lease renewal discussions.

RESULTS

• LREA negotiated a 5.5-year lease renewal for the client’s existing 6,817 square foot space, including restructuring the terms for the remainder of the current lease.
• The lease restructure included six months of gross free rent during the remainder of the current lease term, which expires in December 2011.
• At the end of the free rent period, an approximate 14% net rental rate decrease will take effect. In conjunction with the lease renewal, the client also received a $15 per square foot tenant improvement allowance, of which $5 per square foot can be spent at the client’s sole discretion or applied as a rent credit.
• The lease renewal also called for two 5-year renewal options and an expansion option to accommodate the client’s future growth needs.