CHALLENGE

In the immediate aftermath of the sale of Pioneer Energy to Parkland Fuel the new owners wanted to renegotiate the terms of its remaining lease.

SOLUTION

The Occupier team had negotiated the original Pioneer lease and was retained again to see what if any options were available for the tenant to reduce its occupancy costs. The Occupier team had been able to obtain an option to terminate in the original lease but the window to exercise the option was only weeks away which left little time to act.

RESULTS

The Occupier team had only 2-weeks to develop and execute an RFP in the market and the incumbent landlord refused to participate in the hope they could ‘run out the clock’ on the tenant. However, the financial and strategic options brought to the table through the RFP convinced the tenant to exercise its option to terminate the lease and the Occupier team delivered a certified cheque to the landlord 10 minutes before the tenant’s option expired. In doing so, the Occupier team convinced the landlord Pioneer was prepared to relocate and the landlord reconsidered their position. Negotiations to restructure the tenant’s lease commenced and resulted in a significant reduction in net rent and multiple options to terminate the lease throughout the balance of the remaining lease term.