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Challenge
The client is the Organ Procurement
Organization (OPO) for Washington, Oregon, Montana, and northern Idaho.
LifeCenter is responsible for facilitating the recovery, preservation
and distribution of organs in its service area. The client’s business is
stable and dependable with moderate but manageable growth, and therefore
was the ideal candidate for a long term lease commitment, thereby
controlling one of its biggest year over year operating expenses- its
real estate occupancy costs.
Strategy
The strategy was to find a Landlord
who would understand the client’s stable and dependable business and
be willing to spend substantial money on tenant improvements- some
of which would be specialized improvements exclusively for client’s
use, in order to secure a long term “credit” tenant at reasonable
occupancy costs. Jason retained a construction management consultant
to oversee the client’s technology and specialized infrastructure
needs and to assist in negotiating the most cost effective tenant
improvement program.
Result
21,000 square foot ten (10) year lease at
Lincoln Plaza, with minimal tenant improvement contribution by the
client. The Landlord contributed over $700,000 toward tenant
improvements, including towards client’s specialized improvements. A
long term “space pocket” was also negotiated, allowing the client to
grow into additional office space over time, yet not having to pay for
it upfront. The client’s occupancy cost was now identified and
controlled for this ten (10) year period and as of the client’s
occupancy date, the rent structure was already “under market”, without
even factoring in the beneficial space pocket outlined above.
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Our circumstances were not the
simplest and Jason Smith made this simple for us. Jason managed to
meet all of our criteria and at about a $500K savings over 5 years.
I have previously worked with
commercial real estate professionals. Jason clearly has a
representation model that is far and away superior to that of anyone
I’ve worked with. Jason also brings a team to the plate for the
client. This team truly focuses on the client’s immediate goals and
then offers additional professionals to complete the package for the
client.
We knew at ALL times where we were in
the process, what was happening and what we needed to do. Jason
took our company and the company’s goals to heart and shepherded us
through the entire process. His relationship with the listing
brokers of properties proved to be invaluable. His involvement in
the actual lease document negotiation was exemplary. The majority
of brokers believe their job is to negotiate the business points and
let the client’s attorney do the rest. Not Jason. He told us early
on to think of the transaction as two equal parts - the negotiation
of the business points being merely the first half; and the
negotiation of the actual lease document as the second half. Jason
worked hand in hand with our real estate attorney, whom he had a
good relationship with from other client transactions, to ensure
every section of our lease was properly negotiated. His
understanding of leases really showed us his expertise, and that his
number one priority each step of the way was to make sure, we as his
client, were taken care of in every way possible.
I highly recommend Jason. He is a true
professional and has become a part of our success. |
