Freestone noted that the current rent for new tenants in 2016 was a lot lower and that the building had a vacancy rate of no less than 46%. This put Boston Scientific in a strong negotiating position during discussions extending the lease. When Boston Scientific left the building, the vacancy rate would rise to 63%.
After the stay-or-leave business case and the renegotiation of the existing lease contract, Freestone was able to halve the rented surface area and additionally (apart from the surface reduction) reduce the rental cost for the remaining part by no less than 19%! This way, Boston Scientific could also avoid a difficult move.
Boston Scientific is certainly not an isolated case. Freestone is convinced that many companies are in the same situation with:
- A current use of space that no longer corresponds to the actual needs
- Strongly rising rents because of successive indexations
- Stable or even slightly reduced asking prices
- Very high vacancy, forcing the owner to agree to interesting conditions in an attempt to retain existing tenants.
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