HLC Delivers Results
Free Rent Value: + $20,720
Personal Guarantee Removed: + $10,360
Tenant Saved: $41,697
The Challenge
Peak Elevator is a long-standing elevator supply and service operator with operations in Colorado and Texas. With a potential sale of the business on the horizon, the tenant had to delay decision-making on their real estate. Ultimately, the owner decided it was not yet time to sell.
However, this delayed decision left limited time to negotiate the impending lease renewal or find a new location. Peak Elevator needed to secure favorable terms quickly despite having minimal negotiating leverage.
The Strategy
Once it was determined that moving would not be a viable option for Peak Elevator given the timeline, Holt Lunsford Commercial deployed a strategy to regain leverage for the renewal negotiation.
This required a comprehensive market analysis to create a sense of competition for the landlord on behalf of Peak Elevator. HLC identified creative ways to increase the overall value of the deal. One strategy was to negotiate tenant improvement (TI) dollars that could be converted into additional free rent if not used. This allowed Peak to receive more free rent than the landlord would typically offer in a three-year renewal scenario, effectively maximizing the economic benefit of the TI allowance.
The Outcome
Peak Elevator was able to settle into their existing location with a new lease structure and renewed vision for the future. The company secured a lease rate below market along with two months of free rent to support the new cycle.
Through HLC’s strategic approach, Peak Elevator achieved over $41,000 in total savings despite a compressed timeline and limited relocation options. This transaction provided the stability Peak needed while preserving financial flexibility for future business decisions.
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Contact Holt Lunsford Commercial today | 972.241.8300
Braden Coates | 972.280.8308 | bcoates@holtlunsford.com
