"I value above all else competence and efficiency in my professional network. Derek has excellent expertise in his field and advocated strongly for us in our tenant negotiations in multiple lease cases. I trust Derek as a adviser that is responsive and punctual, but also fun to be around and engage with. I recommend without qualification." -Dr. Tom Kang
Tenant: Puget Sound Perio
Use: Dental - Periodontal
Location: Eastlake & West Seattle, WA
Requirement: Two new locations
The tenant had a proposal from its landlord when it engaged Union Street to assist in the negotiations. Union Street’s involvement improved the deal economics significantly, and added essential tenant rights and protections, which were not included in the landlord’s proposal. Also, the inherited lease from the current owner’s purchase of the former practice was completely revised and greatly enhanced to secure the future needs specific to this practice.
Union Street negotiated a rent structure which reduced the rent for the first five years of term by over 8% and improved the overall deal economics by over 15% (through reduced annual rent escalations, increases in improvement allowances, and free rent concessions). Assignable options to extend the lease term were also secured.
Multiple exit strategies were negotiated for the tenant including lease termination rights in the event of death or disability of the owner, and the ability for the tenant to assign its lease through the future sale of its practice, without requiring landlord consent or potential recapture rights.
Most recently, the Tenant exercised its pre-negotiated Expansion Right and secured additional space at rents that are currently 25% below market rents.