Mako Energy Ltd.
Our team originally negotiated a five-year lease on behalf of Falcon/Mako at 1875 Lawrence, Denver in 2006. In 2011, we were again retained to negotiate an extension of their lease and to downsize the space from 14,000 square feet to approximately 7,500 square feet with a maximum three-year commitment or secure a new location. It was critical to the client that we maximize savings in the first year of the renewal or new lease.
What our team accomplished:
• Located a preferable alternative location, thus creating leverage
• Generated savings to the client in the first year of $204,000 over their prior annual commitment
• Negotiated a turnkey build-out of the new space at no cost to the client
• Negotiated a five-year lease with a right to cancel after three years without a penalty
• Avoided a holdover penalty of $43,000 by securing a commitment from the new landlord to build out the new space in 30 days, which was accomplished
Noble Energy, Inc.
Our team was originally retained by Noble Energy (NE) to negotiate a five-year extension of their existing five-year lease of 70,000 square feet and expand that space by an additional 40,000 square feet. The client’s goal was to have the original five floors contiguous to the three newly acquired floors. They required all leases to have the same termination date and adequate Tenant Finish dollars to retrofit the existing space and build out the new space. Noble was also concerned about their future expansion requirements.
WHAT OUR TEAM ACCOMPLISHED:
- Successfully negotiated a five-year extension of their existing 70,000 square foot lease and negotiated a ten-year lease for an additional 40,000 square feet, both to be co-terminus
- Secured over $3.7 million for the retrofit and build-out of the combined eight floors ($34.00 per square foot)
- Secured Rights of First Offer on any space over 5,000 square feet that became available in the building
Over the ensuing five years we have:
- Secured an additional three floors in the building, all co-terminus and contiguous to the existing space
- Convinced the landlord to move the elevator cross-over floor from the 16th to the 15th floor, at their cost, to accommodate our client’s desire for additional contiguous, secure space
- Negotiated three additional leases for five floors totaling 88,637 square feet in another building across the street—ultimately creating leverage between the two building ownerships for the long term
- Located and negotiated for an offsite 30,000 square foot warehouse space for secure document storage/disaster recovery space
- Located and negotiated for the purchase of 23 acres, after identifying 50-plus properties, for a 70,000 sf build-to-suit field office in Weld county
- Negotiated the city fees associated with the build-to-suit field office, reflecting a cost savings to the client of $668,000
- Secured direct savings in excess of $4,500,000 to the client through aggressive and focused negotiations covering all aspects of their real estate requirements
- Secured 244,766 square feet of office space overall
- Secured 30,000 square feet of warehouse space overall
- Secured 23 acres of land overall
Long View Systems
Long View Systems - 19,579 SF
Long View Systems entered the U.S. market in 2005 by opening an office in an executive suite in Downtown Denver. Over a two year period they had expanded so much that the executive suite could no longer house them. In 2007, our team was engaged to locate and negotiate for a new, 10,000 square foot location in a nearby building. Four years later the client had again outgrown their space and our team went to work on finding a solution. With one and a half years remaining on their lease term, and the market moving in the direction of favoring the landlord, finding a solution required creative negotiations.
Long View Sytems’ Denver operations had two functions: management/sales and a network operations center (NOC). It was decided that if needed, the client could pull their NOC outside of Downtown and house it in a less costly facility elsewhere, although this was not the preference as it would have disrupted Long View’s great culture. Our team set out to convice the landlord that if certain economic and qualitiative terms were not met, Longview would relocate their NOC, allowing them more breathing room for management and sales, and wait out the remaining lease term. They would then “go to market” at the appropriate time and most likely move out of the building.
The client signed a long-term lease for a full floor in the building at favorable lease rates and terms, including a large amount of free rent, allowing them to grow into the space over time. Our team has since been engaged to assist the client as they expand throughout the United States.
New Horizons Computer Learning Centers - 9,845 SF
New Horizons Computer Learning Centers occupied just over 21,000 square feet in the Southeast suburban submarket. As part of a corporate strategic program, they sought to optimize their location efficiency and scale down the size of the office. However, they had two years remaining on their current lease, and current lease rates in the building were much less than their existing rent obligation.
Matt Brower and Gary Taylor helped New Horizons identify their priorities and determine potential options. It became apparent that the best alternative for the company would be an early downsize and extension of their lease. With two years of term remaining, and lease rates over the current market, an aggresssive negotiation was critical to the success of the client’s objectives. Matt and Gary searched the market and uncovered two alternative locations that suited the client’s needs. Both landlords were willing to offer enough rent abatement so that New Horizons would not have to pay double rent.
The two alternative locations translated directly into negotiating leverage with the client’s existing landlord. Matt and Gary were able to negotiate an early downsize of New Horizons’ space and extension of their lease, taking advantage of the soft market conditions.
Columbia College has a long history of running successful campuses in 35 locations across the county. They have resided in Aurora, Colorado for many years, drawing students from all parts of the Denver Metro area. After partnering with us to conduct a thorough study of the neighborhood to see if it still supported their overall image and growth strategy, it was decided that considering relocation was necessary.
The service delivery team was tasked with helping solidify the specific and critical requirements of the Aurora campus. Once defined, the classroom layout, access, parking and company branding initiatives helped narrow the list of space alternatives significantly. While keeping a lease renewal under consideration, a small list of alternate sites was uncovered, and landlords offered significant concessions in an attempt to win the business. After further negotiation and study of the specific areas in question, the client had to make a very difficult decision to either renew their lease in the current facility at very low rates, or relocate to a different building in a new area that allows them to more effectively serve their students and better support their overall business strategy.
Columbia College signed a long term lease to relocate their campus to the Denver Technological Center area. The service delivery team achieved such a great deal on their behalf that it became a very easy decision to relocate: including incredibly-low lease rates, free rent, very high tenant improvement dollars, exterior signage, money for signage, expansion rights and termination rights.