When the commercial rental downturn finally hit New York City in late 2010 and early 2011, our future client was renting and subletting multiple floors of office space in an upscale commercial building in downtown Manhattan. He approached his landlord to lower the rent payments for the three years left on the net lease, but the negotiations fell through and eventually the commercial net lease tenant retained Adam Leitman Bailey, P.C. and withheld rent to gain leverage.
Adam Leitman Bailey was relentless in negotiations. He refused to settle for anything less than a massive win for his client and after months of negotiations and withheld rent the landlord commenced eviction proceedings. Adam Leitman Bailey, P.C. immediately found a laundry list of procedural errors with the landlord’s case. By that time, the arrears had accumulated to $874,496.18. It was clear that, thanks to the defenses established by the Landlord & Tenant Department at Adam Leitman Bailey, P.C., a judge would most likely dismiss the landlord’s case and he would have to start over again – by the time the landlord would be able to evict the tenant, the arrears would likely be close to $2,000,000.00.
With that leverage, Adam Leitman Bailey was able to renegotiate the lease to save his client $398,821.04 over the next three years and have $403,328.36 of the current arrears waived. Thus, the total savings for the tenant was $802,149.40 through July, 2014. Additionally, Adam Leitman Bailey was able to convince the landlord to give the tenant a lease extension to 2019 using the extremely low rents bargained for through the lease renegotiation.
Adam Leitman Bailey represented the commercial net lease tenant in this matter.
|Pre – ALB,PC||Post – ALB, PC|
|Annual Rent through 7/31/14||Average of $1,327,739.52||Average of $928,918.48|
|Total Savings to Landlord||$802,149.40|