Leverage Matters

The Challenge:

Our client, a full-service provider of packaging equipment, was experiencing a significant increase in demand for their equipment and needed more production space in order to fulfill orders on time.  After analyzing their needs for their various departments, it was determined that they would need approximately 50% more space than what they were currently occupying.  

The Wildmor team scoured the market to find relocation options that were the right square footage and in the desirable area. As there were no spaces on the market that would be ideal for our client, Wildmor began negotiations with our client’s existing landlord who had available relocation space that was twice the size of our client’s existing space. During negotiations, the existing landlord escalated our client’s rent substantially and was willing to only provide half of the tenant improvement dollars than what the relocation was expected to cost. 

The Solution:

Leveraging our vast network, we identified an ideal off-market solution. The location improved the team’s commute times and had optimal existing infrastructure which limited the need for capital investment. 

We secured a purchase option as well as negotiated favorable economics that saved our client hundreds of thousands of dollars.  In addition, Wildmor negotiated with the landlord to secure a package from the landlord that included the following:  

• A 21% reduction in the rent compared to the proposal from our client’s existing landlord 

• A 40% reduction in the operating expenses that our client would pay in comparison to the existing building they were located in 

• A 55% increase in the tenant improvement allowance over what our client’s existing landlord was prepared to offer

Scope of services:

• Site Selection

• Transaction Management