The Nonprofit approached Compass Commercial 6 weeks before their lease was due to expire. Their office was located in Detroit, and their lease included free parking. The landlord, however, was going to be raising the rental rate by $2/s.f., which would put them at market. Additionally, the parking that was originally free, was going to increase to $250/spot/month. This left the Nonprofit with an overall increase of about $50,000/year if they were to renew their lease.
What We Did:
Compass Commercial approached the landlord and tried to renegotiate a better rental rate. He refused to budge. The Nonprofit wanted to stay in the City of Detroit in order to be easily accessible to their constituents, so Compass Commercial set out to find affordable options for the Nonprofit. Within 3 business days Compass set up tours with the President of the organization to look at 4 different buildings, where the parking rate was substantially less.
Compass Commercial found a sublease that met the client’s needs and had significantly reduced parking rates. The Subleasor was also a Nonprofit, which conveniently allowed both organizations to work together and strengthen their cause.
– The new space was 30% larger than their previous building and included a great deal of furniture.
– The new space provided an open work environment that encouraged collaboration in the work place.
– Compass Commercial was able to get their deal for the new space in time to move out of their previous building in time to avoid hold over fees.