Lease flexibility was an increasing problem due to each individual local manager determining the quality of revenue. Additionally, local managers were not using a standardized lease language while they were also incentivized to enter long term lease agreements.
Avocat determined that shorter lease terms with built in renewal or cancellation options would provide the flexibility that Talent Tree needed to optimize their portfolio. Additionally, a “rolling” Regus agreement across the country allowed Talent Tree to substitute space in different buildings or cities as needed, further increasing their flexibility.
Avocat and Talent Tree incorporated a standardized lease language to be used for all locations while maximizing lease flexibility. This resulted in protections and cost savings across their 50 location portfolio.