Challenge: Carmen was engaged by the two founders of CIK Enterprises in 2002 (now PERQ), when the company was located above a coffee shop in Danville, Indiana. The company had outgrown the space and wanted to relocate in the greater Indianapolis area so that it could attract more talent to meet the needs of the rapidly growing business. Because of the rapid growth, Chris Carmen discouraged the principals of CIK from entering into a long-term lease. Additionally, as an early stage business, CIK did not have a long enough track record of operating or established credit that the average landlord would accept.
Strategy & Solution: Carmen identified an opportunity with an office sublease on Indianapolis’ northwest side. The building was new, the location was close enough to Indianapolis’ western suburbs so that CIK could retain its current talent, and the term of the sublease was shorter than a regular lease would have been with a landlord. Carmen negotiated a sublease at approximately 50% of the rental cost the existing tenant was paying. One year later, Carmen negotiated a direct lease with the landlord to expand CIK’s offices, while keeping the lease term in line with the sublease.
Result: Two years later, CIK was ready for a larger office and asked Carmen to represent the company’s interest in evaluating the purchase of a building vs. continuing to rent office space. After extensive evaluation, CIK elected to purchase a 17,000 free-standing building. CARMEN subsequently represented CIK with the construction of a 10,000 square foot addition to the building. In 2008, CIK opened its own printing facility. Carmen represented the company in the lease of a satellite industrial facility to accommodate the printing facility. In 2013, in order to reposition the company in its traditional automotive market as well as in new markets, the founders of CIK changed the company’s name to PERQ.