Date: 3/29/2019
This was the largest square foot lease in any building in Hattiesburg. As leasing agents for the building, we had already successfully negotiated several smaller SF leases to Hattiesburg’s two primary medical providers: Hattiesburg Clinic and Forrest Health. During the negotiations, we discovered the previous lease square footage calculations did not include an adjustment for common area and successfully included that amendment when we negotiated with Forrest Health’s VP & General Counsel to renew 22,000 SF of medical space.
The renewal was not without complications. The tenant considered purchasing a building rather than renewing the lease, but we were able to make the tenant aware that moving from the building would be a disruption in their business and we promoted the advantages of this location. We were also able to get the landlord to structure the lease as a gross lease while still achieving a feasible target lease rate. Due to our efforts to get the building fully leased, the owner was able to sell the building at a low cap rate and a substantial profit.
