Cushman & Wakefield »
Knowledge Center »
Business Briefings »
US Real Estate Strategy: The Impact of Early Lease Extension - With Rents Heading Up, Tenants Should Carefully Weigh the Pros and Cons of Early Lease Negotiation
US Real Estate Strategy: The Impact of Early Lease Extension - With Rents Heading Up, Tenants Should Carefully Weigh the Pros and Cons of Early Lease Negotiation
Recasting and extending a lease before the termination date not only affects a tenant’s cash position, but also impacts the financial statements due to the change in lease terms. This briefing discusses how tenants that renegotiate their leases early in a market with upward pressure on rents will realize a negative impact on their P&L statements in the short term, but over the long term will face a healthier financial picture.