Renegotiating the Office Lease

Our headquarters lease expires in eighteen months. The landlord opened negotiations with a proposed 12% escalation and unchanged square footage.

Our real estate advisor benchmarked the rate against six comparable buildings and found it roughly 8% above market. Hybrid-work patterns have softened demand across the district.

Our counter: flat rent, a 5-year term, two floor options to swap for smaller footprint mid-lease, and a tenant improvement allowance of $45 per square foot.

The landlord's reply is due Friday. If talks stall, we have two back-up buildings already toured. Leverage matters — and right now, we quietly have it.