Challenge:
Our client occupied approximately 9,500 square feet and had just secured a large new client, which necessitated new hiring. The tenant needed to expand its space by one-third and reconfigure some key areas. It had multiple years left on its lease due to a prior expansion. HPL represented this client when they occupied 2,500 square feet, and grew the firm’s space in multiple transactions over a number of years.
Solution:
There was a vacant space immediately adjacent to the tenant’s existing space. We had the building owner draw up a space plan which relocated the tenant’s main entry from a side hallway to the elevator lobby, and added needed new conference rooms and a new pantry. We reconfigured parts of the space, had multiple former file rooms combined, and updated old finishes throughout, all at the landlord’s expense.
Result:
The tenant was able to expand its space and hiring in time to meet the deadlines of its new client. We renewed the lease for an additional five years at rents lower than the existing rents, and the tenant received multiple months of free rent on both the existing and new spaces. Base years for operating and taxes were updated, creating additional savings. All work was at Landlord’s expense. We also successfully negotiated for additional expansion rights on both sides of the space, as well as for an additional renewal option, and extinguished the partners’ personal guarantees.
Challenge:
Our client had 5 years left on its 28,000 SF lease. It had occupied its office space for more than 15 years, expanding multiple times over that period. While the layout still worked, the finishes were old and tired, and the Reception Area, Conference Rooms and kitchen/lunchroom required reconfiguration and finish upgrades.
Solution:
HPL entered into negotiations with the building owner, a publicly owned Real Estate Investment Trust (REIT) to extend the lease term and provide funds for the tenant to renovate its space. While we had no leverage to relocate, we were able to offer additional lease term as an incentive for the building owner to provide the funds needed for renovation.
Result:
We were able to obtain a multi-hundred thousand dollar refurbishment allowance for the tenant, and obtained the right for the tenant to hire its own contractors and/or direct vendors. This saved significant dollars over what the landlord’s in-house construction company would have charged for the renovations. We obtained five additional years of lease tem at fixed rates, and an additional 5 year renewal option as --well.
Challenge:
Our client was the largest law firm in Westchester County. It was in 132,000 SF in an old office building. It had grown over the years from an original 50,000 SF by taking any space that was available, on multiple floors. Its workflow and departmentalization was inefficient and its finishes varied from space to space. There were no amenities in the building, and the building owner was not attentive to our client’s operational needs.
Solution:
Notwithstanding the issues with its existing building, our client’s initial preference was to avoid a relocation. HPL instituted a search in its immediate submarket to identify suitable alternative space. We focused a building that had recently undergone a complete renovation, and contained a full amenity package, including cafeteria, fitness center and executive dining. The biggest issue for the client was the inability to get as many perimeter offices as it needed due to the depth of the floor.
Result:
HPL suggested creating an atrium in the building to reduce the floor depth and gain much-needed additional glass for offices. The building owner agreed, and we negotiated a 125,000 SF long-term lease which was the largest office transaction in the Westchester County that year.
