The tenants were 24 Hour Fitness, which signed for 24,474 squarefeet 2033 N. Main St. in Walnut Creek; Round Table Pizza, whichrenewed for 18,894 square feet at 1320 Willow Pass Rd. in Concord;and the CPA firm Thomas, Wirig, Doll & Co., which signed for16,846 square feet at 165-175 Lennon Lane in Walnut Creek.

|

The 24 Hour Fitness existing lease had 18 months remaining, andthe firm negotiated a five-year extension. Round Table, whose leaseis for its corporate headquarters, added seven and a half years toits lease. Thomas, Wirig, Doll & Co. restructured its lease toadd seven years.

|

All three tenants were represented by Kevin Mechelke, managingdirector in the Walnut Creek office of Jones Lang LaSalle, whoworked in conjunction with Tom Maloney and Michael Sharapata.Mechelke says the leases reflect the growing interest amonglandlords and tenants alike to renegotiate and extend existingleases.

|

"Stable tenants with good credit have a terrific opportunity' tocut their occupancy costs in a way that will "help their businessesas the economy gradually improves," Mechelke says. Tenants canachieve these savings by renewing early and extending their leases,he points out. "In a period of increasing vacancy and difficultdebt markets, many landlords are motivated to stabilize income fromtheir properties with the certainty of rental income over the nextthree to seven years in return for up-front concessions," heexplains.

|

Tenants may also have the added benefit of being able to accesslandlord-funded tenant improvement dollars today, rather than atthe end of the existing lease term, Mechelke pointed out.

Want to continue reading?
Become a Free ALM Digital Reader.

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.