Heartsong Music, an award winning child music program for infants, toddlers, and preschool kids needed help with their Austin retail space lease renewal—and they needed it fast. After searching for the right company to help represent them, they trusted Austin Tenant Advisors to help them through the process.
Situation
- Heartsong Music was occupying 3,656 sq ft of Austin retail space on Anderson Lane and its lease was up for renewal.
that was up for renewal. - They thought the renewal process would be easy-they would simply renew their lease for the same amount, or hopefully less.
- After approaching the landlord to get their new lease renewal rate, they
were informed the rate was going to increase by about $5 per sq ft. - They needed help negotiating a better rate or possibly finding a
new space, if needed.
Challenge
- Heartsong Music loved the retail location they were in and also the space. Moving to a new location would have been tough for the company and also for their families that have been coming to the same location for over 5 years.
- Budget and the possible increase of their monthly lease rate was a huge concern.
- Time was running out as they only had a couple of months left until their current lease expired.
Actions
- Austin Tenant Advisors searched and located several other retail space options in Austin for consideration thus creating competition for the tenancy between the existing landlord and others.
- Austin Tenant Advisors communicated to Heartsong’s landlord that they were giving their notice and moving out.
- They were able to negotiate a competitive lease renewal package.
Results
- Austin Tenant Advisors saved Heartsong more than $50,000 in lease costs over the five year lease term.
- Austin Tenant Advisors helped negotiate an additional $18,000 in tenant improvement (TI) allowance which gave Heartsong enough money to install a new door and flooring.
- The lease renewal that Austin Tenant Advisors helped Heartsong Music negotiate was a win-win for everyone. Heartsong got to stay in a space they loved and it became an even BETTER space after the lease renewal was complete.
