One of my clients needed to consolidate with the offices of a recently acquired competitor. My client occupied 25,000 sf and the competitor occupied almost 9,000 less than one mile away. After I toured both offices and analyzed both leases, I recommended a bold solution that would eliminate the remaining competitor’s obligation and further reduce my client’s real estate costs by reducing the ratio of square footage per employee.
Each lease had a different landlord with my client’s lease expiring first. Since the competitor’s lease had significant term remaining, I successfully negotiated with that landlord to terminate that lease in exchange for the client relocating its offices to another building owned by that landlord. My client benefitted on several fronts. First, they achieved aggressive lease terms in a tenant’s market. Second, they were able to reduce their square footage ratio per employee by updating their office layout. Finally, they were able to completely modernize their office space with an open, contemporary design. My client had been in their previous location for 17 years and a refurbishment of the existing office would have been extremely disruptive.
My bold solution provided my client with significant savings by eliminating the over seven years of remaining lease liability of the 9,000 sf competitor’s lease within 18 months of the acquisition. I provide unique solutions for each of my clients. Contact me to discuss your particular situation and let’s find a creative solution for you.