Check out the Tremendous Savings that Compass Commercial was able to Facilitate for a Client
Sales Organization Case Study:
A sales organization had been in their building for 3 years and originally had 3,342 s.f. when they moved into the building in 2012. By 2014, they had out grown their space, so they subleased and additional 1,290 s.f. from the adjacent tenant, whose lease expired within a year and a half.
– We needed to get the spaces to be similarly built out so that it looked like one space.
– Tenant missed a clause that the landlord put into lease, that indicated the tenant had to put the ceilings back to their original state.
– Landlord had the right to relocate the tenant at any time, and the tenant had put a great deal of their own money into the space. Which would not be reimbursed if they moved.
– The client was in negotiation for a large contract and needed to expand the space by an additional 2,000 s.f. if they won the contract. The client would not know if they had the contract for 60 days after the sublease expired.
What We Did:
– We reviewed all the lease documents, which allowed us to identify the items which were missed during the original negotiations.
– We found 3 different locations in the immediate area to lease and/or buy.
– We negotiated and found a sublease in same building, at a substantial reduction in rent, that included free furniture.
In the end, the decision was to renegotiate and sign a longer-term lease for the 4,600 s.f. space. We saved them $.50/ s.f. off the subleased space over the term of the lease. We reduced the rent of the original lease by a $1/s.f. over the term of the lease. We eliminated the requirement to have to rebuild the ceilings upon the termination of the lease. The landlord agreed to rebuild the subleased space to match the original space, at his expense. We negotiated for a new space adjacent to their current spaces with a turn key build out; This allowed our client the 60 days they needed to finish negotiating their new contract. The new spaces had the same terms and conditions and included a turn key build out.
Total cash savings:
– $28,000 in rent over the term of the lease.
– Negotiated an estimate of $75,000 in improvements
– For a total savings of $100,000.