31 May, 2024

Efficient Lease Negotiation: Huntsville Property Deal Sealed in Six Weeks, Balancing Tenant and Owner Needs

Mark Dickinson recently leased 11521 Gilleland Road Huntsville, a flex space building (offices and warehouse/storage), on a two-year lease contract.

The presence of Redstone Arsenal and its various organizations such as the NASA Marshall Space Flight Center, the Missile Defense Agency, the ATF, and FBI, among others, and the various defense contractors make Huntsville an attractive proposition for this cyber security company to expand its foot print.

Mark worked with the prospective tenant and the property owner to ensure that the tenant's desired minor reconfiguration requests and security requirements could be met while the property owner could still have access to the building for his own personal use.

They worked together to propose a construction of a wall for security measures while the property owner could still use certain areas if the need arose. The shared space required a creative way to ensure that the tenant and property owner shared the utility bills in a fair manner. They came to an agreement whereby they took the average utility bill over the past two years. The tenant agreed to pay over that average amount for the duration of the lease.

They came to another deal whereby the tenant would install a security system to meet their specific requirements yet secure the entire building, a benefit and cost saving measure for the property owner. The property owner also agreed to provide furniture for the tenant's use, a cost-saving benefit and convenience for them.

This lease took approximately six weeks to complete, from initial interest in the property to signature and execution. This lease was negotiated mostly over the phone and through email, with the final conversation to iron out small details done through Zoom.

Mark looks forward to helping more clients find the property which meets their needs, whether through lease, sale, sale leaseback, or 1031 tax deferred exchange.