When the tenant of a 16,000 m² (approx. 170,000 sqf) single tenant property filed for insolvency, the property owner had to find a solution for the building.
Re-letting scenarios were already developed as part of the acquisition process and several options for dealing with the single-tenant risk were discussed with the tenant long before their insolvency. At the same time, re-letting activities started and negotiations with a potential tenant had already begun when the insolvency occurred.
A 20-year lease for the entire property was finalized with the prospective tenant, a government agency. Their timeline was particularly challenging: Firstly, the signing of the lease was complicated by the lease termination period for the tenant’s existing premises. Secondly, the move-in date in connection with the tenant’s high fit-out requirements. Therefore, the termination of the lease had to be negotiated with the insolvency administrator while the insolvency proceedings were still ongoing and new premises had to be found for the insolvent company.