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Challenge
The client had recently closed on a
substantial amount of venture capital and needed to expand. The
challenge was whether to expand their current operations into adjacent
space or move the entire company. Their existing building offered a few
advantages for expansion, most notably a limited amount of disruption to
on-going business and a favorable rental rate structure. Relocating the
company had its own upside: ten year low rental rates and many vacancies
already cabled, wired and with some level of furnishings existing.
Strategy
We determined our focus would be on
the sublease market because of attractive economics, low
securitization requirements, and sufficient spaces offering ‘plug
and play’ type set-ups. Leveraging selected Sublessors against each
other and maintaining the possibility of not relocating at all put
the client in a commanding position.
Result
A 23,500 square foot sublease with Nortel
Networks at One Twelfth at Twelfth— a less than two-year-old project on
the edge of downtown Bellevue with great visibility and access to
Interstate 405. The negotiated rental rate and parking costs achieved
were 50% less than those being paid by the Sublessor, in addition to use
of the Sublessor’s fully outfitted Herman Miller work space, complete
with workstations, Aeron chairs, and support furniture. Additionally,
the first-year rental rate was deeply discounted to help offset the
client’s initial up-front occupancy costs and be more in line with their
future expense and revenue projections. |
“We are thrilled with the space that
Jason Smith helped us find, negotiate and close. Jason quickly
understood what we needed and found several properties that would
work well for us. As we negotiated with one building, it became
clear that we couldn’t get the space as quickly as we wanted. Jason
kept an eye on the market and quickly came up with an alternative
property that was much better for us and turned out to have better
economics than any of the other possibilities. Jason did a great
job quickly and successfully negotiating the deal for us. He
understood our business and financial requirements and made sure we
worked all of them into the deal. In the end, Jason found a
property that exceeded our expectations and was a huge help in
getting us better terms than we had expected. We ended up with
terrific space with terrific terms. I highly recommend Jason’s
services.”
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