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In the Spotlight: Structuring Lease Takeovers

By Anthony Casareale
January 30, 2012

A large corporate tenant has outgrown its space in Manhattan and there is not sufficient space in the building coming available to meet its needs. This company sees a market brimming with opportunities. The economy and leasing market are still recovering. Rents are attractive and there are several available blocks of space that suit its needs, many in state-of-the-art new buildings.

A landlord becomes aware of this company's interest in relocating. This landlord's building has been slow to lease up since being completed in 2008, and faces a 40% vacancy and a mortgage loan that will soon be in default if this vacancy rate lingers.

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