Raleigh Neurology was proceeding with the execution of a renewal option at a fixed, higher rental rate, rather than negotiating more favorable renewal terms. As it turned out, Raleigh Neurology was paying rent on space it didn’t use, but there was not an easy way to give back this extra space. Further, Raleigh Neurology was set on a five-year lease and it seemed improbable an owner would invest the necessary improvement funds over such a short term.
Davis Moore coordinated with Raleigh Neurology’s operations manager to understand the priorities of the business. Then, Davis Moore’s relationships with – and understanding of the financial position of – two competing landlords resulted in unforeseen opportunities. After learning of these attractive alternatives, the current landlord quickly maneuvered to present more favorable terms.
Without burdening a single physician, Davis Moore reduced rent expense by 13 percent – an average annual savings of $40,000. The physicians spent no extra time but reaped the financial rewards.