The Context
After selling their local neighbourhood grocery store business but retaining ownership of the building in which it operates, the clients were faced with a lease renewal with a national grocery operator, the company responsible for the banner under which the store operates. As a large conglomerate, the operator approached the renewal with a professional third-party appraisal. The appraisal’s position: the rent was deemed market-rate already and therefore no increase would be justified.
Recognizing the importance of entering negotiations with clarity and confidence, the clients engaged the Maven Commercial Real Estate team to provide strategic advisory services before moving forward
The Strategic Approach
Maven’s role was to provide an independent, fact-based review of the property and its market position. The challenge for the Landlord (the clients) was that the lease agreement specified that at the time of renewal, the establishment of the new rental rate had to be based on comparable properties that were of similar geography, size, and use—so it was not a situation where varying data would easily render a different appraisal outcome. Rather than relying solely on broad lease comparisons, the Maven team decided to focus on understanding the specific performance and strengths of the location.
The approach focused on:
- Establishing clear, defensible data as a basis for negotiations;
- Evaluating site-specific performance rather than generic lease data;
- Supporting the owners with strategic guidance throughout the renewal negotiation process.
The Work Behind the Strategy
Stephanie completed a detailed market review that extended beyond desktop research. This included in-person visits to comparable neighbourhood grocery store locations in surrounding towns, including the most profitable stores in the region.
Key work completed included:
- Reviewing tenant mix and plaza layouts at comparable grocery-anchored locations
- Assessing local competition and economic activity within each market
- Analyzing demographic and census data to better understand each location’s performance and profitability
This analysis demonstrated that this grocery-anchored location outperformed many of the comparable properties identified in the appraisal, supporting a strong position for a sizable rental rate increase.
The Result
At the time, landlords were typically achieving rental increases of approximately 3–5% at renewal. With Maven’s strategic advisory services, the clients secured a significantly stronger outcome.
The results included:
- A 17% rental rate increase upon lease renewal, with escalations
- Approximately $400,000 in additional property value
- Improved lease terms that positioned the asset for an easier sale should the Landlord ever decide it was time to sell
Thoughtful strategy, supported by detailed market insight, meaningfully impacts both income and long-term property value. Strategic advisory delivers results when it is grounded in facts and executed with purpose.
