Property Disposition




To be successful, companies need to be flexible and prepared to change direction quickly. As a result, our clients know they can rely on CRA to assist them with subleasing or selling surplus real estate or properties that have reached a level of functional obsolescence. CRA also has experience in the sales/leaseback of owner-occupied properties and negotiating the early termination of leases.

  • Owner Occupant Property Sales / Sales Lease Backs:
    • Relocation of assets to the company’s core growth business.
    • Beneficial means of “exiting” from a property that may not meet the company’s long-term plans.
    • Obtain funds to improve the facility for updated use.
  • Subleasing:
    • To be successful in subleasing:
      • The subject lease must first be analyzed to verify all relevant facts.
      • The economics and concession package must be properly established.
      • Marketing materials must be distributed to brokers and tenants.
    • Typical subleasing errors or difficulties:
      • Economic and/or timing expectations are not established or are not realistic.
      • Landlord consent not requested or obtained.
      • Prospective subtenants fail to understand the full economic obligations and withdraw at the last minute from negotiations.
      • Subleases do not conform to the master lease or contain conflicting provisions or errors.
      • Subleases do not properly protect the sub-landlord.
      • Construction estimates are underestimated.
      • Sub-landlords become obligated for costly restoration requirements resulting from construction performed for or by the subtenant.
      • Building code violations often result when subleasing only a portion of the premises.
      • Subtenants fail or are unable to obtain the insurance required under the master lease.
      • Sub-landlords do not monitor activities of subtenants and incur additional liability, particularly if subtenant defaults and does not have funds to cure default activity.
      • Sub-landlords often fail to negotiate a termination of the lease in lieu of entering into a sublease.
    • Early Lease Termination:
      • CRA has extensive experience with negotiating favorable termination options into the initial Lease document, options that can later play a vital role in either removing a tenant’s need to sublease or creating leverage for the tenant to terminate early in lieu of entering into a sublease.
      • Termination Options are more than minimizing length of term, it is a mechanism to allow for the following:
        • Lease term flexibility and options of reducing late term economics.
        • Creating leverage for late term negotiations prior to renewal.
      • And typical lease termination negotiation errors:
        • Not establishing clear criteria for the termination.
        • Not establishing or finalizing the maximum cost to terminate.
        • Not clarifying the deadline date.
        • Not tracking the deadline date for submittal of termination notice or payment.