Goldstein Law Group - September 2010
Long-time client Goldstein Law Group's lease was coming due in a highly opportunistic environment for good-credit tenants - summer 2010. Yet a ‘tenants market’ represents its own set of challenges to the real estate professional, and then a new development presented a twist to what could have been a relatively simple lease renewal.
Morris Southeast Group represented Goldstein Law Group in its first lease in August 2001, when the legal/insurance firm was a start up with three attorneys and leased approximately 2,500 square feet. In 2003 Morris helped Goldstein expand to 4,500 square feet, then another expansion in 2008 to 8,500 square feet. The 2008 transaction was a short-term (two year) lease agreement due to brewing economic headwinds. The first challenge to the 2010 decision to renew or relocate was the extremely high market vacancy – nearly 21 percent in the Ft. Lauderdale metro market. Morris toured the market from top-to-bottom – an extensive undertaking, before the client determined to focus on a lease renewal at its existing location.
The second challenge occurred in the 11th hour of lease renewal negotiations - the building owner had placed the property into contract to be sold. Facing the daunting possibility that lease negotiations would have to be completed with new owners, Morris accelerated the negotiations and got the lease completed before the landlord inked the building sale, thus avoiding a scenario in which the new owners would have to bless the lease. Terms were very aggressive, featuring a substantial rent reduction, a period without rent and a short list of tenant improvements covered by the landlord.