Simple lease finance solutions for corporate tenants and landlords
Realty Lease Finance Corporation provides upfront capital to fund leasing costs, providing certainty of timely funding to tenants and brokers.
Market Dynamics
Valuable Solutions for Both Tenants and Landlords
Tenant Challenges
- High TI needs; high quality office space required to attract workers.
- Expectation that landlords will pay tenant improvement costs in full; heavy tenant reluctance to invest in landlord space.
- Tenant generally willing to pay higher rent for more tenant improvements.
- Landlords increasingly deficient in reimbursing TI expenses on-time and in-full as agreed in lease.
RELEAF Solutions
- TI allowance and commissions on-time and in-full
- No landlord operating, solvency or credit risk
- Rental obligations remain the same as original lease
- Ability to up-size TI if necessary (with corresponding increase in rental rate)
- Simple agreements with minimal legal work
Landlord Challenges
- Lease profile creates long "J-curve" returns for each new lease
- Combination of higher operating expenses, higher construction costs, higher interest rates and lower tenant demand have put heavy pressure on cash flows and reserves
- Lenders are increasingly reluctant to fund TIs and cutting back on TI facilities
- TI availability creating enormous competitive advantage to attract tenants
RELEAF Solutions
- In most cases completely eliminates working capital pressure and "J-curve".
- Allows to out-compete competition by offering generous TI packages.
- Immediately positive cash flow to at least partially absorb operating expenses.
- Asset improved with upgraded space.
- No more reliance on capricious lenders; no more delayed reimbursements.
- Meaningful leasing now possible even with minimal cash, reserves & working capital.
Contact Us
For more information please contact your leasing agent or contact us directly at [email protected]