Tuesday, October 16, 2018

 

ONCOR SUBLEASE
Competitive Sublease Disposition in a Competitive Market

157,958 Rentable Square Feet

 

Situation

Oncor moved from Energy Plaza (EP), in order to move into their newly bought headquarters at 1616 Woodall Rogers.  Lease termination on space in EP had five years left.  The challenge was to find a client who could sublease the six floors in EP.  OMS initiated a call to the Greyhound (GH) brokers, who agreed to tour the space.

Approach 

  • OMS orchestrated a search among brokers with large deals in the market
  • OMS initiated a call to the Greyhound (GH) brokers, who agreed to tour EP
  • After not being on the short list of GH options; EP became first choice for the GH executive team
  • OMS consulted and negotiated on behalf of Oncor in order to receive the best offer for Oncor
  • Oncor receives offer from GH to sublease all six floors
  • OMS created financial modeling structures to analyze cost for Oncor
  • Financial modeling created for Oncor to analyze it from the tenant’s viewpoint as well

Results

  • EFH, the parent company of Oncor, gained a first time interest in buying back the leased floors from Oncor

    GH became a catalyst of motivation and also created a sense of urgency for EFH to move quickly in buying back the leased floors from Oncor

  • EFH buys back all six leased floors from Oncor

  • Unprecedented timing was achieved in taking a large sublease space off the market through persistence, strategic thought leadership and consulting efforts