Introduction
Colliers Indonesia Office Tenant Representation team was successfully assisted a leading maintenance technology manufacturer and solution provider company that located in TB Simatupang, to renew their office lease.
Challenges
Colliers did not encounter many challenges as it worked on this project. However, there were a few points that Colliers needed to give extra attention to achieve and exceed our client’s expectations:
- Colliers Indonesia was appointed only about a month prior to the lease expiry. With limited time, Colliers needed to ensure an efficient renewal process.
- There was a clause in the previous lease agreement that could not be used in the new agreement. This had to be changed in order for our client to renew their lease.
- The owner of the leased space is a secondary owner and not a building developer, so there were some regulations that were not updated. This also affected the negotiations between both parties.
Strategy/Services
In order to complete the project within just one month, Office Tenant Representation team collaborated with our client to:
- Conduct a careful analysis of the previous agreement. Then, the Colliers team arranged the appropriate options so they could be negotiated with the owner.
- Conduct an intensive interview with both parties so that everyone received updates with all the progress.
- Collaborate with the developer agent to provide updated information and education to the owner regarding some of the rules listed in the old agreement that cannot be reused.
- Manage negotiations based on evidence to influence the owner's decision. Colliers Office Tenant Representation team provided data, according to regulations in Indonesia, as well as benefits that both the tenant and owner get by renewing the office lease.
Result
As our client head office requires that rental price to remain the same as it was previously, the Office Tenant Representation team successfully reduced the rental price. The owner also agreed to renew our client lease period as per their request. In addition, Colliers also successfully completed the project before the previous lease expired.
Learn more about office space in Jakarta or visit our Research Page and subscribe to our mailing list for more thought-pieces on the latest in commercial real estate.
