Real Estate Strategies CEO: Companies Can Cut Costs and Weather Tariffs With Smarter Planning
CFOs can cut costs and improve liquidity through strategic real estate moves like sale-leasebacks, lease renegotiations, and portfolio optimization.
CALIFON, NJ, UNITED STATES, September 25, 2025 /EINPresswire.com/ -- Companies Can Weather The Tariff Storm With Innovative Real Estate Planning Says Real Estate Strategies Corporation Strategist & CEO Andrew Zezas
At a time when many companies are being buffeted by yo-yo tariffs and other economic volatility, a comprehensive review of occupied real estate whether leased or owned can - unveil significant cost-reduction opportunities, advises Andrew Zezas, Strategist & CEO of Real Estate Strategies Corporation in the just-released Summer- Fall edition of CFO Intelligence Magazine.
“By consolidating operations, disposing of surplus facilities, renegotiating lease terms, analyzing occupancy costs, and leveraging sale-leasebacks, companies can enhance their operational efficiency and protect their bottom line,” he explains.
But some solutions that appear “obvious” may have drawbacks, he warns. “When cash flow is tight, some companies jump to relocate to lower-cost leased facilities,” Zezas observes. “The substantial upfront costs associated with acquisition and relocation, however, often make this unviable as a short-term solution. For owned facilities, sale-leaseback transactions offer a flexible and expedient cost reduction alternative. These transactions, which convert owned real estate assets into leased properties, can be completed more quickly than traditional sales and provide near-term liquidity.”
Sale-leaseback transactions, however, “come with varying accounting and tax implications,” he cautions. “And, investors often place greater value on the creditworthiness of the seller/future tenant and their ability to make regular rental payments. As such, sale-leaseback transactions are better viewed as structured finance transactions rather than traditional real estate deals.
Additionally, the length of lease terms in these transactions can significantly impact the sale value and the seller's operating flexibility. So there are many details that need to be addressed.”
Debt financing could make sense for companies with owned real estate assets that are not surplus to operations, he adds. “But if the assets are surplus or can be consolidated, selling them may be an option. The time and risk costs associated with selling owned facilities must also be carefully weighed, as sales can take anywhere from 6 to 24 months to complete.”
Existing leased space may also present cost-reduction opportunities, notes Zezas. “Leases, and their associated occupancy costs, should be reviewed, regardless of the expiration dates,” he counsels. “Early termination or space reduction rights can be leveraged to achieve savings, but keep in mind that renegotiating leases can involve trade-offs that create value for both landlords and tenants.”
Renegotiating strategies include adjusting the amount of occupied space, extending lease terms, controlling occupancy costs, or securing additional rights and options. “Direct cost reductions may come in the form of reduced monthly rent, free rent, operating cost reductions, or leasehold improvement allowances,” he adds. “Whether through operating cost assessments, lease restructuring, sale-leasebacks, debt financing, or disposing of surplus properties, strategic real estate management is key to weathering economic storms and maintaining profitability.
These and other informative articles are available at CFOIntell.com.
For media inquiries, please contact:
Andrew B. Zezas
Host, Publisher & CEO
andrew.zezas@realstrat.com
201.906.8964
About Real Estate Strategies Corporation
Real Estate Strategies Corporation provides advisory, consulting, strategy, guidance, transaction planning and execution, brokerage services, subject matter expertise, litigation support, and other services to companies that occupy real estate. The Company’s highly focused expertise includes advising management as to the real estate implications of buy and sell side M&A, turnarounds, restructures, bankruptcies and bankruptcy avoidance, portfolio optimization, lease restructures and terminations, sale leasebacks, lease and sale acquisitions and dispositions.
Real Estate Strategies Corporation advises CFOs, Management, and Boards at public, private, and private equity-owned middle market and enterprise companies, and tax-exempt organizations, in the acquisition, disposition, and optimization of commercial facilities of all types throughout North America and in select global markets.
About CFO Intelligence Magazine
CFO Intelligence publishes CFO Intelligence magazine and the CFO Business Sentiment Index, and delivers visionary perspectives, proven case studies, and insightful guidance from creative and accomplished CFOs at some of the most successful and sophisticated companies worldwide.
Andrew B Zezas
CFO Intelligence
+1 201-906-8964
Andrew.Zezas@cfointell.com
Visit us on social media:
LinkedIn
Legal Disclaimer:
EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
