Tuesday, October 16, 2018

 

MW LOGISTICS
Early Renewal/Expansion
(Retained Below Market Rate/Concessions)

10,869 Rentable Square Feet

 

 

Situation

MW Logistics headquarters ($50M+ in annual sales) desired expansion rights plus options for current and future growth. Existing lease economics were 50% below market, and their lease expiration was in 14 months. Needed to leverage market to achieve competitive economic terms and extend below market rental rate beyond their current expiration date.

Approach
  • Created financial modeling structure customized for CFO’s needs

  • Compared landlord net analysis scenario’s based upon market terms and owner return parameters

  • Identified competitive properties that met needs of customer and could be used as leverage with current landlord

  • Created tenant attribute chart to ensure all needs would be met in the RFP

Results
  • Secured most aggressive economic terms given by owner to date

  • Initial five years of early renewal lease period, retained rental rates 50% below market

  • Secured fixed expansion options with guaranteed future terms at today’s rates/concessions

  • Negotiated improvement allowance that will provide turnkey build-out, plus $100,000+ to be used at tenant’s discretion for FF&E