Challenge: Concentrics Research had been located in its office space for 5 years. Its success had caused it to expand three times since its lease commencement, leaving the office somewhat “chopped up.” The leadership felt an office relocation would disrupt Concentrics’ operations and concluded that they would have to relocate to accommodate the company’s immediate and future expansion.
Strategy & Solution: Concentrics engaged CARMEN Commercial Real Estate to investigate and analyze the viable options. CARMEN identified a number of suitable sites where the company could relocate and crafted a solution that would allow Concentrics to remain in its current space while expanding. CARMEN worked with the owner of the building and development to relocate the fitness center, thus freeing up space to accommodate Concentrics immediate growth.
CARMEN studied other business development fitness centers and found that the fitness center was under-sized and outdated in comparison to competing business developments. CARMEN presented its findings to the owner of the development along with a plan by which it could relocate the fitness center to accommodate one of its larger tenants. The landlord would save significant improvement dollars by not relocating Concentrics, and the updated fitness center would help the development remain competitive.
In addition, CARMEN negotiated a right for Concentrics to expand into adjacent space used by the development owner as storage and service space. This provided Concentrics with space to expand over the next five years at a cost lower than market, while allowing the landlord to generate rent on space that previously had been unproductive.