Tenant Representation: Securing New Space on a Fast Track Basis
- Time to Completion: 90 Days
- Client: Prima Energy
- Project Type: Tenant Representation
A Happy Company in Record Time
We met with Prima Energy for the first time on September 1. They had a 90-day deadline to expand or relocate, and we helped them relocate to their new offices by December 1st.
In less than two months they located our space, aided in negotiating the lease and made sure that the necessary build-out was completed in time to accommodate our move-in date.
The Challenge: Meeting a 90 Day Deadline
The company was trying to decide on a proposed December 1 renewal of its 11,000 square foot, full-floor office lease at 1801 Broadway in Denver’s Central Business District (CBD). Prima needed to expand by another 5,000 square feet, but the only expansion option in their current building was located on a separate floor. Additionally, Prima needed certain tenant improvements, which would have required disruptive construction while still occupying its current space. The firm already found the lack of on-site parking inconvenient. However, with time running out, Prima was under pressure to renew its lease, even though the terms were unfavorable and the prospect of a disruptive build-out caused great concern.
Guidance Corporate Realty Advisors Inventive Problem-Solving
We typically advise clients of this size to begin their renewal or relocation process at least 12 months in advance. However, we accepted the challenge of securing a better alternative for Prima in spite of the 90-day deadline. Because Prima was rate conscious, we focused our search on sublease spaces that had a significant amount of lease term remaining and could be converted into a direct landlord lease with a healthy subsidy from the current tenant.
By October 1st, we had identified and toured several options. Key variables were finding space where we could utilize much of the existing tenant finish build-out, choosing space with a Landlord and Sublandlord motivated to act quickly, and selecting a competent architect and general contractor that could meet the very aggressive deadlines.
A StorageTek sublease space at Plaza Tower at Denver Place (now Denver Granite Tower) seemed to fit the bill perfectly. The space’s configuration appeared to work with minor modifications, and the Landlord was willing to pursue a direct lease. Best of all, Prima could fit on a single 16,000 square foot floor.
Plaza Tower at Denver Place was a superior project to Prima’s space at 1801 Broadway: many on-site amenities, conveniently located to desirable restaurants and entertainment in LoDo, offered more than double the on-site parking, provided significant expansion options, very important to Prima.
On November 1st, Prima Energy signed a new long-term, direct lease. And on December 1st, Prima moved on time into a newly renovated, full floor at Plaza Tower at Denver Place. Prima’s space was delivered on a turnkey basis, including voice and data network cabling, at no additional cost to the Tenant, and without having to live through an in-place, dusty and disruptive remodel.
In just 90 days, we had saved Prima an estimated 15%, or $365,000, versus the proposed renewal, achieved superior productivity by being on just one floor, secured better amenities, better parking, and better expansion rights!
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