Challenge:
Our client was in a lease for an office/warehouse facility in Woerden, Netherlands. They were changing their logistics processes in Europe and needed less space. Their present facility was not divisible, they were paying an over-market triple-net rent and were responsible for all maintenance and repairs for the building. This was a client who I had previously represented in a renewal of a 50,000 square foot office/warehouse lease in New Jersey.
Solution:
Through my membership in the international Society of Industrial and Office Realtors I sourced and retained an expert broker in the Netherlands. We began our market research and determined that availabilities in the immediate area were very few. With the client’s permission, we widened the search, focusing on areas easily accessible to main highways.
Result:
Though there were very few options available in the subject market, we found a high-quality building in the proper size, in move-in condition. The client saved 59% annually on its occupancy cost. The building owner is providing the maintenance and repair services that the tenant previously had to contract for and pay for. Even with the differences in real estate practices, time, measurements and language, we were able to accomplish the client’s objective.
Challenge:
Our client occupied about 60% of the floor of a suburban office building in two non-contiguous spaces. It required expansion and additional conference rooms.
Solution:
HPL first surveyed the local market, and inspected all available spaces with the tenant. While there were spaces available that could fit their needs, the tenant had a strong preference for its existing location, which was within walking distance to a frequently used train station. We engaged the existing building owner in negotiation to take additional space. This required a months-long lobbying effort to relocate the existing tenant that occupied the desired expansion space.
Result:
HPL negotiated a 10 year lease extension, with rent rollbacks and significant free rent. We also convinced the building owner to upgrade all common areas on the floor, including the bathrooms. The tenant now occupies 75% of the floor, and has expansion rights over all other spaces on the floor, at a much lower occupancy cost than during its original lease.
Challenge:
Our client was a 50,000 SF full-building tenant coming to the end of a 10 year lease term. It had problems with frequent roof leaks, as well as HVAC issues. It also needed to improve its loading, add supplemental air conditioning to its IT Room, and upgrade its office space. The tenant distributed, repaired and maintained sensitive medical testing equipment, and warehoused and distributed chemicals and reagents used in that equipment. It had made a significant investment in fitting out the building for its purposes, as it converted this former warehouse building to a fully air-conditioned flex/office building.
Solution:
HPL asked the tenant to put together a comprehensive list of all its building and systems issues, and the histories of how they had been dealt with. We asked for a list of upgrades and changes required to optimize the tenant’s operations, improve its workflow and employee satisfaction. At the same time, we surveyed the market and inspected alternative available spaces to establish their viability and current market pricing.
Result:
HPL negotiated with the building owner to replace the entire roof at its expense. We secured a significant renovation allowance to allow the tenant to improve its space. The tenant renewed its lease for a 10 year term, and added two 5 year renewal options. We rolled back the rent and reduced its Security Deposit.
Challenge:
Our client, a major colocation data center operator, needed a site in Connecticut for a full-service data center. Due to the strict location/power redundancy/fiber connectivity requirements, there were no existing buildings that would satisfy its needs.
Solution:
HPL commenced a site search, and identified a site within an existing office park whose location offered the key criteria required by our client. The owner/developer proposed building a custom structure on a “cost plus” basis. After much negotiation and construction budgeting, our client ultimately decided that it was not in its best interest to proceed in this manner. It became clear to us that the developer had no incentive to keep its costs (and our client’s rent) down in this type of deal structure. Some months later, we returned to the bargaining table with a different concept, and convinced the developer to agree to an objective set of specifications to be delivered at a fixed price. In this deal structure, the developer (not our client) took the risk for any and all cost overruns.
Result:
Our client was able to enter into a long term lease at affordable fixed rents. The structure was built to its specifications. This was the largest build to suit project in Fairfield County in 11 years, and the largest real estate transaction in the county that year.
