Case Study | The New Space

Overcoming Obstacles to Attain the Objective
Our client faced a “good” problem, the success of its products required it to double in size. As a young company with a frugal CEO, our client is very careful to obtain value for its hard-earned dollars. Deeply concerned for the wellbeing of its workforce, our client insisted on quality space with amenities for its staff. And it needed to move quickly as the lease on its current space was expiring. The company sought the expertise of Horgan & Associates to manage its relocation process.

Refining our Client’s Objectives
Horgan & Associates’ initial step was to understand our client’s needs. We developed a questionnaire to focus on the issues critical to refining the company’s requirements. Beyond size, we included location preferences based on work force demographics and commuting patterns, market conditions, and costs in target markets. We looked at workflow and work culture to determine the most efficient layout of space and examined quality of life needs such as parking, responsive management, security, physical comfort, and available amenities. Based on our discussions and meetings with various members of our client’s team, we developed program requirements and parameters for evaluation of space options, then we sought commercial brokerage representation.

Finding and Evaluating Space
Horgan & Associates drafted a Request for Proposals for Brokerage Services, and handled the responses and interviews of brokerage candidates. Our client’s team members participated in all the interviews and the questioning of finalists to determine the best “fit” for its representation. After a thorough assessment of the credentials of the brokers who would handle the assignment, their experience with the particular market and product type, and the resources their firm would devote to their support, we presented our recommendation to the client. We supervised the selected broker’s Request for Proposals to landlords and brokers for the space we needed. After narrowing the field, we toured finalist buildings with our client and our brokers. We assessed the location and physical appearance of the properties, the quality of each space, and the nature of amenities. We interviewed representatives at each property about mechanical and life safety systems, tenant services, and operating expenses. We put together a matrix that allowed our client to compare properties one against the other. We looked at sublease vs. direct lease, term, improvement allowances, and net effective rental rates. The best overall deal for our client was a sublease with a complication. The space required significant modifications.
Value Engineering, Resolution of Costs, Coordination of Relocation
Horgan & Associates selected a contractor to reconcile our client’s requirements and those of the Building Code. To control costs we value engineered the budget for improvements and then conducted a five-sided discussion among the client, the contractor, the city building inspector, the sub-landlord, and the landlord to arrive at a scope of work and a price that would satisfy all the parties to the transaction. Horgan & Associates reviewed the sub-lease language and suggested alterations to protect our client. Once the sub-lease had been successfully negotiated, we managed a complicated approval process to allow release of the build-out work essential to a timely completion of the relocation to avoid a holdover situation. 

The expertise of the Horgan & Associates team adroitly overcame an emerging series of obstacles and allowed our client to meet their schedule. We helped the company achieve an eminently suitable space and save in excess of $125,000 in occupancy costs over the lease term. #

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