See the data. Negotiate with leverage. Cut costs.
Commercial Tenants are at a disadvantage. We level the playing field.
In just a few clicks, LeaseAlpha calculates the best lease renewal or early restructure deal for a tenant – the terms at which your landlord would receive the same return whether you stay or leave.
For tenants that means negotiating leverage to get the best deal possible: immediately cutting costs, right-sizing space, and upgrading build-out.
Don’t wait to negotiate. Starting early preserves a credible relocation threat and boosts your leverage.
Use our calculator to get the numbers you need to negotiate the best possible deal on renewing or restructuring your commercial lease agreement early.
LEASEALPHA Calculator
Advantages of an Early Lease Restructure
It enables tenants to immediately reduce cost of occupancy by lowering base rent and receiving abatements from landlord.
It enables tenants to receive a build-out allowance from landlord to immediately start refresh of the premises, without waiting for current lease expiration.
It enables tenants to immediately downsize its premises, if necessary.
How do we do this?
Short answer: Transparency, Integrity, and Math!
We Educate Tenants and Provide Transparency
Commercial real estate leasing industry is not transparent. Information necessary to compare real estate leasing deals is scarce, proprietary to landlords and brokers, and is rarely recorded for public access. As such, there exists a serious informational asymmetry, which makes tenants’ leasing decisions even more challenging. It should also be noted that brokers, representing landlords and tenants, are paid when the deal closes, regardless of how good or bad lease economics are for the tenant. That is why, for a tenant negotiating a lease, it is extremely important to understand the landlord’s “bottom line”, that we call the point-of-indifference (the lease terms at which landlord gets the same return whether tenant stays of leaves), which LeaseAlpha calculator provides.
We Share Brokerage Fees with Tenants Who Engage LeaseAlpha
Tenants often hear that the cost of tenant representation is paid by the landlord, so the tenant-rep brokerage services are “free” to tenants. We do not believe that to be correct, since leasing commissions are amortized into rent, which the tenant is obligated to pay over their lease term. Since you are paying this cost over time, we believe that payouts of all fees should be fully transparent. LeaseAlpha is dedicated to helping tenants negotiate the best deal and, if LeaseAlpha is engaged, we ensure you see what each entity involved in the transaction receives and a portion of these fees are returned to the tenant.
Frequently Asked
Questions
What does LeaseAlpha do?
LeaseAlpha ensures tenants have access to the tools and services necessary to negotiate their optimal commercial real estate lease. We educate tenants , provide transparency and share brokerage fees with tenants who engage LeaseAlpha Brokerage, LLC.
What does LeaseAlpha calculator do?
LeaseAlpha calculator is a cloud-based modeling software that allows tenants to quickly and easily create sophisticated landlord point-of-indifference model, solve for the best possible lease renewal or early restructure deal terms, and calculate potential savings as compared to the current lease in-place.
What is the landlord point of indifference modeling methodology?
The central premise of the landlord point-of-indifference methodology is that a rational landlord would not agree to a lease renewal or early restructure deal that is less profitable than allowing the tenant to vacate and release the space to someone else. LeaseAlpha calculator solves for the net rental rate which equates to the same landlord profitability whether or not the tenant restructures or vacates.