Silver Spring, MD – Erickson Orthodontics is saving nearly 20 percent annually in real estate expenses over the next decade at its Silver Spring office thanks to a transaction recently completed by two brokers with Scheer Partners.
The leading provider of fully integrated commercial real estate services for the health science industry in the Washington and Baltimore metropolitan areas announces today that it has negotiated on behalf of Erickson Orthodontics in a 2,314-square-foot lease at 13321 New Hampshire Ave., a 29,115-square-foot building owned by AGAR LP.
In this 10-year lease extension, Scheer Partners Vice President Nate Crowe and Associate Jamie Rash represented Erickson Orthodontics, which has remained at this New Hampshire Avenue location for more than 20 years. The founder of Erickson Orthodontics, Dr. Duane Erickson, also has a second office at 2935 Olney Sandy Spring Road in Olney.
Erickson Orthodontic’s current lease at 13321 New Hampshire Ave. expires this August. Crowe and Rash approached the landlord a year in advance about their client’s renewal.
Through a rental-rate reduction, the resetting of the operating-expense base year, and several months of free rent, the Scheer Partners brokers have decreased Erickson Orthodontic’s real estate costs by 32 percent in the first year of the new lease term, as well as 18 percent annually over 10 years.
The rent decrease alone will save this client more than $100,000 over the next decade. Furthermore, operating-expense savings will total another $70,000. Crowe and Rash also secured for Erickson Orthodontics a strong tenant-improvement allowance for various improvements to the space.
“We are extremely pleased to have executed this extremely favorable deal on behalf of Erickson Orthodontics,” Rash says. “Our aggressive negotiations with the landlord at 13321 New Hampshire Ave. have resulted in our client dramatically cutting its real estate expenses.”
Erickson says that he did think about relocating, or buying a property to develop, within two to three miles of his existing New Hampshire Avenue office. “While we have been tenants at 13321 New Hampshire Ave. for 20-plus years, it was time to seriously consider our options, and Nate and Jamie helped us do a thorough evaluation,” Erickson says.
“An investment in leasehold improvements, location and name recognition, and the positive terms that Nate and Jamie were able to negotiate were all factors in our decision to stay,” Erickson adds. “With their help, we were able to finalize an excellent new lease. Nate and Jamie were great through whole process. We are delighted with their work.”