Using trade to eliminate your costs on unused but committed lease space

We've written a great deal on this site about how corporate trade can rid surplus owned real estate from corporate portfolios. Did you know that trade can also absolve you from lease costs on unwanted or unused lease space?

For example, say you have office space in Boston, originally leased to house your east cost office. But you've closed the office and have five years remaining on your lease agreement costing you $1mm/year. You are still writing a hefty check every month regardless of whether you occupy it or not. You've tried finding a sub tenant, but the market has changed since you took the lease and there's no relief in sight.

Corporate Trade could be your answer. The trading company cannot absolve you of your lease agreement, but it can provide you with the cash necessary to cover your monthly payments. With each month's lease payments 100% reimbursed to you, you are now cash flow neutral.

As with the receipt of any financial benefit accruing from trade, all you need do to receive reimbursements for your lease payments is to

place a portion of your budgeted advertising through the trading company. How much advertising? It depends upon the amount of your lease and the parameters of your advertising. But, regardless, as long as the advertising is placed according to the pricing and commercial terms set by your agency or marketing people, the amount of media you place through trade will not adversely affect your marketing.

By the way, this concept also applies to other lease expenses like trucks, computers, and capital equipment. If you are paying for unused, unwanted or obsolete goods or services, put Corporate Trade on your short list of solutions.

 

About Mike Lake

Mike is the Senior Vice President of Marketing for Evergreen Trading. When not playing jazz trombone he is probably obsessing about writing content that will capture the attention and interest of business people and fellow learning junkies everywhere.

Leave a Comment ::

*