The Challenge
• Thrive WA was fortunate enough to sign a lease in a downtown high rise at the very depth of the recession, giving them a very low rental rate.
• The downside of the office was its design and layout. Heavy build out, very inefficient and very little synergy or energy, especially for the younger generation of employees.
• A new Executive Director was hired on to breathe life into Thrive WA and bring them into the next decade of their mission.
• With their lease expiring in 2 years, renewing in their current space was not a viable option as the price point would have been far too high and the space no longer met their needs.
Strategy
• To avoid negotiating their next lease in an even less favorable market, we decided to sublease their current office and seek a new office immediately.
• We knew a very large company occupied many floors surrounding Thrive’s office, so the natural first call was to their broker to see if they would have ambition to take over our lease.
• Next, we determined ideal submarkets that would achieve affordable rent, attract young and new talent and were easily accessible by transit.
• We received and negotiated proposals from a few different buildings, putting them into a matrix to outline the cost savings and future rents of each option to present to the board.
• We worked with an architect to plan their desired building/suite in a way that was budget conscious while delivering a space that would appeal to the next generation.
Results
• Thrive was able to assign their original suite to the large user that surrounded them in the building, walking away from the obligation entirely.
• Thrive leased a more efficiently sized space, with custom build out and design at a building in Belltown that allowed great access by mass transit and a strong amenity base.
• The landlord provided an allowance for tenant improvements as well as $30,000 for furniture so a substantial portion of the move budget as landlord funded.
• The half floor still had an obligation remaining from another company, so occupying one floor immediately and being able grow into the expansion space as the other company moved out fit our goals perfectly.
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