Business Mergers and Existing Leases:
Business mergers are taking place all over the country, Louisiana and in Baton Rouge (witness the purchase of The Shaw Group by CB&I early last year).Quite often, in mergers and acquisitions of this type, the combined companies will end up with leased facilities that are no longer necessary due to the economies of scale created by the mergers. In that instance, in particular when you’re dealing with long term leases, it could be a benefit to propose a lease buy-out to the Landlord or vice-versa.The attached analysis provides some insight on what factors should be taken into consideration in an analysis of this type.Larry Dietz, CCIM
Associate Broker
http://www.ccim.com/cire-magazine/articles/323572/2014/07/lease-buyout-decisions
Larry Dietz, an associate broker with Saurage Rotenberg Commercial Real Estate, has over 30 years of Sales, Marketing and Public Relations experience. He is a Designee member of the Certified Commercial Investment Member Institute (CCIM) and CCIM Louisiana Chapter; a member of the Commercial Investment Division of the Greater Baton Rouge Board of REALTORS® (CID); as well as an affiliate member of the National Association of REALTORS® (NAR). He is a licensed real estate broker in Louisiana and Mississippi.
Saurage Rotenberg Commercial Real Estate is a member of the Baton Rouge Area Chamber of Commerce (BRAC); the West Baton Rouge Chamber of Commerce; the Baton Rouge Better Business Bureau; the Louisiana Commercial Data Base (LACDB); and the International Council of Shopping Centers (ICSC). Several agents, on an individual basis, are members of the Society of Industrial and Office Realtors® (SIOR), the Certified Commercial Investment Member Institute (CCIM); the National Association of REALTORS® (NAR); and the Greater Baton Rouge Association of REALTORS® Commercial Investment Division (CID).
