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Project Outline
Attempt to reduce client’s rental rate and
occupancy costs mid-term in a 20 year lease in downtown Seattle. Client
is the anchor tenant in the building with naming rights as well. The
existing lease called for a “market rate adjustment” but was vague as to
methodology in determining such figures. Additionally, there were no
comparable deals completed in the market place other than several large
transactions in the mid/high-rise portion of the building at
substantially higher rental rates than what Client was paying at the
time.
Strategy
Engaged the help of four (4) appraisal
firms to assist in establishing a group of generally accepted comparable
Class A buildings in the Seattle CBD. Engaged three other major
landlords to provide information in order to define a “blended” rental
rate and concession package for other significant transactions (office,
retail and storage) in that focus group of buildings.
Result
Client reduced its occupancy cost by over a million
dollars in 2005. Received an additional cash payment from the landlord
in the amount of $670,000 and realized a savings over the remaining
lease term of approximately $5.5 million dollars.
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“Jason not only
recognized and leveraged the prevailing market forces to secure the
best overall value for the Bank, but also took the time to
understand our internal space needs which really yielded significant
dividends. Jason also is extremely familiar with the legal
documentation. Our internal counsel was delighted to work with
someone truly concerned with the detail of the transaction which can
be so easily overlooked.”
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