The Challenge
• Fast growing Biotech company with headquarters in Seattle, WA
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• In 2017, raised $12 Million in Series A round of funding led by OS Fund, Bioeconomy Capital, Sustainable Conversion Ventures, and WRF Capital.
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• Bursting at the seams at existing lab in Magnolia and needed to double their head count and triple their lab space
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• Desire for “nontraditional” lab with high ceilings and open/collaborative layout
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• Electrical capacity, zoning/use restrictions, expansion capabilities were all requirements for new headquarters
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• Very short timeline due to hiring needs, equipment ordering, and upcoming lease expiration for existing space
Strategy
• Toured existing facility to understand equipment needs, ideal layout, and work flow.
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• Created a PDF for potential landlords that outlined the activities that would be performed in the space, chemicals that were used, electrical/mechanical requirements, etc (this ultimately saved a ton of time not focusing on buildings that couldn’t meet our needs)
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• Surveyed the market for spaces in the 8,000-12,000 square foot range and toured options in Interbay, Ballard, Fremont, and UW
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• Introduced general contractors, electrical contractors, and architects to figure out costs for desired tenant improvements
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• Created a financial matrix to compare all options and determine financial implications of each scenario
Results
• Identified a space in Interbay where the existing tenant was looking to terminate their lease early and downsize to a smaller space
• Worked through termination issues with the existing tenant and negotiated a 5 year lease with substantial tenant improvement dollars from the Landlord
• Negotiated several months of free rent
•Combatted letter of credit and personal guarantee demands by the Landlord; ultimately, negotiated a very low security deposit that was extremely favorable for a startup with recent funding.
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