PetSmart Saved $3.1 Million
Negotiation of Early Renewals with Rent Reduction and Obtaining Tenant Improvement Allowance for Remodels Provides Significant Savings
PetSmart, the largest specialty retailer of services and solutions for the lifetime needs of pets, sought an outside service provider to help achieve corporate objectives which included early renewals with rent reduction, obtain Tenant Improvement Allowance for the Evolution Store Remodel Project, and remove CPI language from future options.
SRS was engaged, acting as an extension of PetSmart’s real estate department, to negotiate the objectives outlined above on 25 locations. SRS leveraged our broker network across the nation to perform market analyses necessary to support property-specific strategies and negotiations. SRS implemented individual lease reviews, strategy recommendations, process management and reporting in addition to site-specific landlord negotiations.
SRS had a 56% success rate in negotiating option rent reduction with the average reduction in rent at 9.23%. SRS has saved PetSmart in excess of $2.5 million in occupancy costs, obtained $500K in tenant improvement allowance for remodels and added future options to existing leases.
Services Provided
- Negotiate early renewals with rent reduction
- Obtain tenant improvement allowance for store remodel project
- Market analysis
- Property-specific strategies & negotiations
- Lease reviews, strategy recommendations, process management & reporting
Results
- 56% success rate in negotiating option rent reduction, with an average reduction of 9.23%
- Saved in excess of $2.5 million in occupancy costs
- Obtained $500K in tenant improvement allowance for remodels
- Added future options to existing leases