Assignment
Negotiate a short term renewal of FiServ’s current lease and secure funds from the landlord for necessary tenant improvement work.
Objective
FiServ required a short term extension to coincide with the lease expiration of Corrillion, a business that they had recently acquired. FiServ’s goal is to merge the two businesses into one 100,000 square foot shared facility in 2010.
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Challenges
FiServ occupied over 50,000 square feet of office space, making them one of the larger tenants in the market. With few alternative locations to consider, could we negotiate reasonable business terms? We knew a 2 year extension would not be attractive to the landlord. We also knew we were vulnerable since it made no sense to move for only a 2 year term.
Results
We were able to identify 3 properties that could provide up to 100,000 square feet of long term expansion. This provided us the leverage to negotiate a more favorable renewal. We negotiated a 2 year lease extension at no increase in rent over their current rent, plus a tenant improvement allowance was provided to make improvement to the property.
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