Cunningham & Associates Office Relocation

My first project with the Cunningham’s was selling a small commercial building they owned in Old Town Alexandria in the year 2000. Over the next fifteen years I have brokered their initial move to Roslyn, two lease renewals, and an expansion. This year Mr. Cunningham turned 80. He wanted to stay in Roslyn, downsize, cut his rent expense in half, and wanted a three year lease per the terms he had negotiated with this wife to continue to practice law. He also wanted an office with a good view. Tenant’s requesting a short lease for a small space with prime views do not typically motivate landlords to sharpen their pencil and offer the best deals. In this case our strategy of proposing immediate occupancy for a good credit tenant on a space that just needed a coat of paint, paid off.

The asking rent for their best option was $37.50 per square foot with 3% escalations every 12 months. We were able to reduce that cost with a rent abatement of $3.50 per square foot, a tenant improvement allowance concession of $5.50 per square foot, and just one rent escalation after 18 months. That amounts to an effective rent of less than $30 per square foot. 

As part of the deal, I agreed not to identify the property by name. Instead of a typical photo of the building I have shown a red box on an aerial view of the building to identify the 11^th floor corner suite location of Cunningham & Associates new office. Good deals can come in small packages.