|
Project Outline
Ferguson Wellman Capital Management is a
Portland-based investment advisory firm. Although revenues and
profitability have grown dramatically, two forces affect their real
estate decision: technology and the cost of doing business in the
Central Business District. FWCM is able to manage the assets of a
growing list of clients with fewer employees and less leased space.
Further, as a highly profitable company owned by 7 partners, local taxes
are a significant burden on the firm. Finally, the firm was paying 20%
above current market rates.
Services Provided
How We Added Value
GVA Kidder Mathews was retained 24 months prior to the
expiration of Ferguson Wellman’s lease. We started the process by
assisting FWCM in retaining a space planner to evaluate space
alternatives. In evaluating the firm’s 5 year business plan as well as
the space program, it was apparent that they could continue to grow
their business in smaller quarters. We also arranged a first meeting
with the Economic Development group from the Portland Development
Commission (PDC) to discuss retention incentives. After evaluating the
entire market, we were able to negotiate a lease that gave Ferguson a
reduction in rent of 24%, got Tenant Improvement funds necessary to
improve workflow, and received landlord concessions and PDC incentives
equal to 16 months free rent on a ten-year lease.
|
“Our ownership structure makes us
vulnerable to high local business income taxes. Knowing this, Mark
and Brandon coordinated with the Portland Development Commission to
help us obtain financing that made the decision to remain in
Portland much more attractive.”
Dean Dordevic
Principal
|
