Lease restructuring advisory.
The firm negotiates lease extensions and revised terms with tenants on behalf of owners.
- Best for
- Owners of net lease properties with limited remaining term or dated lease provisions
- Applies to
- Retail properties and shopping centers, ahead of a sale or as a long-term hold
- Coordination
- Owner’s counsel and, where applicable, the tenant’s real estate team
Why the lease matters.
In a net lease property, the lease is the asset buyers and lenders underwrite. Remaining term, the rent schedule, renewal options and landlord obligations each bear directly on pricing and on the depth of the buyer pool.
Restructuring the lease can change that profile. Additional term gives buyers a longer income stream to underwrite. Revisions to rent increases, options or landlord responsibilities can make the property easier to finance and to sell, and give an owner who intends to hold greater certainty of occupancy.
Whether a tenant will agree, and on what terms, depends on the tenant, the site and the existing lease. AMC reviews the lease and the tenant’s position at the location, advises the owner on what a restructured lease could mean for value, and negotiates with the tenant on the owner’s behalf.
The firm has extended or restructured leases with national tenants in retail properties and in shopping centers, including sporting goods and office supply tenants at a power center in Pennsylvania.
Lease restructuring services.
Advisory for owners considering an extension or revised lease terms ahead of a sale or as part of a long-term hold.
Lease and option review
Analysis of the existing lease, renewal options, rent increases and landlord responsibilities, and how buyers would view them today.
Valuation impact
An assessment of how additional term or revised provisions could affect pricing and the depth of the buyer pool.
Tenant negotiation
Negotiation with the tenant on term, rent and related provisions, on the owner’s behalf.
Owner protection
Terms evaluated against the owner’s objectives, so that a restructured lease supports rather than limits future value.
Documentation
Coordination of the lease amendment with the owner’s counsel and the tenant.
Disposition
Where the owner intends to sell, the restructured lease is presented to the buyers most likely to value it.
The lease restructuring process.
Defined milestones, managed by the same advisors from engagement through closing.
Review
Lease, options, rent schedule and site.
Analyze
Value under current and revised terms.
Strategy
Objectives and proposed terms, agreed with the owner.
Negotiate
Discussions with the tenant on the owner’s behalf.
Document
Amendment executed, with or without a subsequent sale.
Tenant sectors.
Sectors in which the firm has extended or restructured leases with national tenants on behalf of owners.
- Discount RetailNational value-oriented retail
- Financial ServicesConsumer financial services
- Auto PartsAutomotive parts retail
- Sporting GoodsSporting goods retail
- Office SupplyOffice products retail
Auto parts retailer, Ohio.
One example from the firm’s lease work.
Auto parts retailer
Ohio
Before bringing the property to market, the firm negotiated a lease extension with the tenant, giving buyers a longer income stream to underwrite.
Lease restructuring advisoryAdditional lease and reimbursement assignments are in the firm’s case studies, including a title lending lease extension in the Southeast.
Does an owner need to be selling to restructure a lease?
No. A lease can be extended or restructured ahead of a sale or independently, as part of a long-term hold.
Will the tenant agree?
It depends on the tenant, the site and the existing lease. The team assesses the tenant’s position at the location before recommending an approach.
How does restructuring affect value?
Remaining term and lease provisions are among the most significant drivers of net lease pricing. Additional term and clearer provisions generally give buyers and lenders more to underwrite, though the effect depends on the terms negotiated.
Is the tenant contacted without the owner’s approval?
No. The tenant is approached only with the owner’s permission and on agreed terms.
Discuss a lease restructuring.
The team will review the lease and the tenant’s position and advise on whether an extension or revised terms could support the property’s value.