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Atlanta, GA, United States, 2012/06/11 - Extend and Blend leasing program critical to leasing strategy for MidSouth Capital office space lease renewal. Using this office space renewal strategy they were able to reduce office space leasing costs.
MidSouth Capital, Inc. recently restructured and extended their office space lease for their Atlanta headquarters location. They were represented in this transaction by The Armstrong Group, an Atlanta based office tenant representation firm. The Armstrong Group utilized a creative office leasing strategy- An Extend and Blend Lease Program, which provided MidSouth Capital Inc. an extension of their current lease with negotiated reductions in rental rates and operating expenses.
The Extend and Blend Leasing Program is a simple amendment to an existing office space lease that extends the length of the lease and includes financial incentives from the landlord to reduce the costs. Companies that signed office space leases before 2008 are probably paying above market rental rates. It makes economic sense for certain landlords to offer incentives to encourage a current tenant to remain in their building rather than try to lease space in a slow market.
Ron Bateh, CEO of MidSouth Capital knew he wanted to keep renting office space in his current location but needed to reduce his operational costs to fund continued expansion of his investment business. He knew there were almost three years before his office space lease expired and needed strategic advice to monetize his office lease to reduce costs. “I contacted Brent Armstrong because we had no experience in negotiating an office space lease. I knew that he would not only help me restructure my office lease but also protect my business”
After thoroughly reviewing the MidSouth Capital’s office space lease and extended meetings with the landlord, Brent Armstrong suggested an Extend and Blend Leasing program. The negotiated new lease was advantageous to both landlord and tenant. “Brent not only knew the leasing market and the complexities of the lease, he also knew the other side of the bargaining table.” said Ron Bateh. Not only was the landlord able to keep a growing and expanding company in their building, they also avoided the marketing cost and months of lost leasing revenue.
MidSouth Capital will significantly reduce their real estate and operating expenses for the next seven years. These savings will have a dramatic and positive impact for MidSouth Capital because real estate lease cost savings fall directly to the bottom line. "The costs savings from the Extend and Blend approach benefits us greatly as we continue to hire new investment professionals and expect significant growth over the next few years. " said Bateh.
For more information on the advantages of an Extend and Blend office leasing program, please visit The Armstrong Group website at thearmstronggrp.com or call Brent Armstrong at 770-664-7550.
About The Armstrong Group
The Armstrong Group (TheArmstrongGrp.com), founded in 1996 by Brent Armstrong, is an Atlanta-based commercial real estate broker firm that helps businesses find office, retail and industrial space that meets their present and future needs. Primary services include office tenant representation, real estate consulting and development with a specialization in strategic transaction management. Brent Armstrong's negotiating experience and focus on building sustainable relationships by understanding a client's commercial real estate objectives, includes a personally selected team of professionals -- aligning expertise with the specific needs of each individual assignment. The Armstrong Group has worked with well-known companies such as Davita, Inc., Delta Air Lines, Digital Insurance, LSG Sky Chefs and Worldspan.
About MidSouth Capital, Inc.
MidSouth Capital Inc. (midsouthcap.com) is a branch network associated with one of the premier independent investment broker/dealers, L. M Kohn & Company. For more than 20 years MidSouth Capital has been serving the needs of their clients- high net worth individuals, institutions and corporations. The company serves the needs of individuals through its Retail Services group. Through MidSouth's association with L. M. Kohn & Company our registered representatives have access to the expertise of RBC Correspondent Services for clearing and execution services and access to RBC CS's products, services and investment advisory programs.