From a Renewal to a Better Relocation
A renewal-minded tenant ends up with 30% more space at a 23% lower rate, two blocks away, in the same neighborhood the business already called home.
The situation
A confidential client on West 27th Street engaged us on an exclusive basis to evaluate their lease renewal options. They were paying $43.71/RSF, above prevailing market rates, in a suite with window A/C units and shared, floor-level bathrooms. Their strong preference was to stay put, so a straightforward renewal looked like the obvious path.
Our approach
We built a comprehensive market survey of comparable availabilities across the immediate submarket, arming both sides of the table with real data. Faced with the comps, the incumbent landlord cut the renewal rate to $40.00/RSF with one month free. But the same survey surfaced a stronger option two blocks away the client hadn't considered, and once they walked it, the decision made itself.
The result
W 27th St → W 29th StSpace comparison
| ExistingW 27th St | Landlord's best offerW 27th St | New space, selectedW 29th St | |
|---|---|---|---|
| Size | 1,842 RSF | 1,842 RSF | 2,400 RSF+30% |
| Rent / SF | $43.71 | $40.00 | $33.50−23% |
| Monthly rent | $6,710 | $6,140 | $6,700 |
| Free rent | None | 1 month | 4 months |
| HVAC | Window A/C units | Window A/C units | Central A/C, tenant-controlled |
| Bathrooms | Shared, on the floor | Shared, on the floor | 2 private, in-suite |
Why it mattered
The client came in wanting a renewal. They left with 30% more space at a 23% lower rate per square foot, tenant-controlled central air replacing window units, and two private in-suite bathrooms replacing shared facilities, for a monthly cost of about $6,700, virtually unchanged from what they were already paying.
The new space on West 29th Street sits just two blocks from the neighborhood their business already calls home. Same commute, same network, materially better terms and a materially better office.
The takeaway
A renewal would have preserved the status quo. Instead, the client upgraded nearly every term that mattered, space, air, and privacy, for essentially the same cost, because we looked at the whole market instead of just the renewal in front of them.