11 June, 2011

RACC Saving of 100.000 € due to the renegotaion of the lease

ABOUT THE COMPANY

RACC is leader in the national market being the largest automobile club in Spain with more than 1,100,000 partners and internationally an organization of reference in the field of mobility. The company has a network of commercial premises throughout the national territory. Some of them are on a leasehold and some are the company’s property.

PROBLEM

For those held on leasehold, it was necessary to carry out a market analysis in order to evaluate the current condition of the market for each of the leased premises and to establish the current prices and, if necessary, develop a project to have the rents adjusted.

SOLUTION

We carried out a detailed market analysis in 54 locations. We examined the premises according to their characteristics, and accordingly, we defined the price for each of them considering the current situation. Next we drafted a report on each of the leased units and we contacted their respective owners. In many cases we held meetings with them to comment on the results included in the reports and, therefore, have the rents adjusted to the real market prices for the current momento.

RESULT

Savings amounted to 100,000 € for the first year of the project and there were also savings for the following periods. Thanks to the conversations and meetings held with the owners of the properties we could identify ordinary situations that had not been considered before. This helped to solve several problems. With all the work, not only was it possible to obtain some savings but also some added problems were solved and the relationship between the owner of the property and the tenant strengthened.

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