Axiom Custom Business Solutions was a past client of Rare Space that needed to grow yet realized their time was best spent running their business.  Once again they called on Rare Space to deliver the tools to research the market, identify spaces that could fit their needs, and leverage a deal that would enhance their organizational efficiencies and increase their bottom line.  With nearly two years left on their current lease and no room to grow, Axiom was in a bind.

Integro Inc. was another Rare Space client with a dilemma of its own.  Eager to start an operation near the Denver Tech Center, they wanted a short-term solution that would not hinder their budget.  Rare Space was in a fortunate position to bring these two clients together to work out a plan whereby Integro would sublease Axiom’s space, thus freeing Axiom to locate a new building of their own.  In doing so, Rare Space identified a space that was already built-out to Axiom’s specifications at a building with a hungry landlord.  With new carpet as the only tenant improvements necessary, Rare Space nailed down great low rate at Axiom’s new building while Integro got comfortable in Axiom’s old space.  Two tenants with distinct needs, one brokerage with a win-win solution: Rare Space.

NewsGator Technologies, Inc. is the leading RSS platform company which develops and markets RSS aggregation solutions for individual end users, enterprises, publishers and other online content providers.  The company experienced explosive growth and needed to quadruple in size, but wanted to maintain a risk adverse real estate strategy to allow for future growth.  NewsGator sought to enhance its corporate image and operational efficiencies in an economical manner.  

Rare Space was retained by NewsGator and quickly negotiated with a Fortune 100 company to sublease over 19,000 square feet of space.  They relocated NewsGator from 4,500 square feet of office space in a Class B building to an entire floor of the U.S. Bank Tower in downtown Denver at a lease rate 38% lower than comparable space in the building.  In doing so, Rare Space diligently worked hands-on with the architect and construction firms throughout the space planning process.  The result was cheap, efficient Class A space with expansive views of Downtown and the Front Range.  Over the course of their 3 year sublease, NewsGator will save over $500,000 compared to paying direct rent at the same building.

Two clients, in two different leases, looking for one building to house both companies.  The building must have a great investment exit strategy, functionality, and separation for each company. 

There were many moving parts for Rudy Project, the Italian based manufacturer of performance sunglasses, and Eflection, a locally based, national provider of commercial and residential real estate modeling and measuring. 

The building:  At the time, a medical clinic occupied and owned the building on the south side of City Park.  The doctor was in the building for decades.

The leases:  Two leases, expiring over two years apart.  Luckily, we represented both of these groups in their original leases and had built in a termination option on the longer of the leases. 

The hurdles:  The new building has residential zoning.  By putting a contingency in the purchase contract that allowed the buyers to walk away if the office variance were not granted, we planned for the unknown.  Also, with two buyers, what is the best financing?  What is the best partnership agreement?  Through the right relationships of the whole team, both companies are enjoying their new digs. 

The exit:  An important ingredient in this transaction was the exit, this building must be in the right area and have the right repositioning to maximize a sell in three to ten years.  With the local Pinnacle project under construction just a few blocks to the west, all local property values have increased substantially, allowing these new owners the right environment to profitably sell or redevelop the property to achieve their goal, in a building that will suit them perfectly until that next project.

TMR engaged the services of Rare Space Inc. to assist them with an early lease renewal and possible lease restructure.  They were currently challenged by a $16.50 per square foot lease rate on 6,000 square feet and desired to lower their rate to current market rates.  The building they were occupying space in was listing available space at $13.50 per square foot.

Rare Space evaluated TMR’s space utilization and financial position to help define a real estate strategy and guide them through the real estate process.  The strategy that was designed is as follows:

STEP 1:  Present a proposal for early lease renewal at existing building
STEP 2:  Review market availabilities for client’s requirements and narrow list to 5 alternatives
STEP 3:  Coordinate and conduct tours of the 5 prospect properties and narrow list to 2 or 3
STEP 4:  Prepare proposals for top two prospective properties
STEP 5:  Review financial comparison of all proposals (including existing landlord’s proposal)
STEP 6:  Draft, approve and send counterproposals to all properties
STEP 7:  Negotiate with existing landlord using leverage from the two prospective alternatives
STEP 8:  Agree to economic and business points; execute lease document

This process resulted in TMR’s existing landlord offering $40,000 for tenant improvements, a $25,000 rent credit and a new expense stop base year of 2004.  See the table below for a side-by-side comparison.

CONCLUSION:  By utilizing Rare Space’s services, TMR was able to reduce its occupancy costs by over 38% and utilize tenant improvement funds to make necessary updates to the space.  This has significantly benefited TMR’s financial bottom line and operational efficiencies.

Event Management Systems (EMS) was occupying 6,198 square feet of Class B space with a lease expiration looming on the horizon.  Business was going well and they desired an image upgrade with a little expansion space.  However, they needed enough rent relief for the relocation to make sense financially.  This is when they turned to Rare Space.

Rare Space has acted as a “virtual” real estate department for EMS over the past four years, and set out to find Class A space that would be financially responsible while achieving EMS’s goal of image enhancement.  Over time, Rare Space learned of a Class A building which was being acquired by a new owner.  Knowing this was the perfect time to approach the new Landlord, Rare Space was able to negotiate and leverage a lease on 8,708 square feet, on the top floor of the building, which included 20 months of free rent and a great market lease rate.  With the twelfth floor western views in a Class A building, EMS achieved their image upgrade while lowering their costs per square foot, and avoided paying double rent.

Below is a side-by-side comparison of EMS’s deal:

Through a referral from another client in the same building, Colorado Enterprise Fund was unsure of their future growth.  Their lease expiration was looming close and the ideal size and most efficient layout was all up for discussion.

Along with Colorado Enterprise Fund, who provides small business loans to entrepreneurs, we determined a short term and a long term approach, what they need now and what they will need if the predicted changes and growth occur.  

After searching the market and touring other great options, it was determined to pursue a one year lease negotiation in the current space to accommodate the current situation.  In the meantime, we simultaneously negotiated their expansion and build out of the new larger and more efficient space within the building.  This way, they had an option on their “perfect space” eight months after the original one year commencement.  

Because the future looks bright, CEF exercised their new option, which automatically terminated the remainder of the one year agreement quickly and easily.  By keeping the same suite number, they eliminated the cost of ordering new stationary and sending announcements and they locked in the lower rates of eight months earlier.   

CONCLUSION:  By utilizing Rare Space’s services, Colorado Enterprise Fund was able to focus on their future business of helping entrepreneurs in a more efficient and new space, all accomplished through great planning and building in the right flexibility. 

CenterStone Technologies is the recognized leader in Sales Order Management solutions for specialty retailers throughout North America and Europe. As a past client of Rare Space, they knew who to call when it came to solving their real estate problems. After expanding within their previous building, CenterStone found themselves on two separate floors of an historic downtown building where rental rates were on the rise. With their lease expiration quickly approaching, CenterStone decided it was time to shop around for cheaper, more efficient space while maintaining their LoDo location.

Rare Space was retained by CenterStone and managed to negotiate a great deal right next door to their current building with a turnkey tenant improvement allowance and a 30-day construction deadline. Confident that they had secured the best office deal in LoDo just as their CFO had his first baby boy, it’s no wonder that stogie tasted so sweet. Check out this rate schedule:

Both Ontrack Data International and Homeseekers.com hired Tom Grotewold to represent them in their search for approximately 12,800 square feet in the Boulder County market. After touring several properties, Homeseekers was prepared to negotiate with a recently completed building at 5480 Valmont in Boulder. After the initial proposals, there was a meeting between the Tenant, Tom Grotewold and the Landlord, and it turned out that all of the parties knew each other from the Boulder area. Because everyone was familiar with each other and contrary to Grotewold’s advice, the Tenant decided to negotiate directly with the Landlord and ultimately consummated a lease on his own.

Ontrack Data hired Grotewold as its Tenant Representative, and he began the search process in Boulder for approximately 12,800 square feet. Ontrack followed the advice of Grotewold and allowed him to implement a proven strategy. The strategy employed was to engage and negotiate with three different Landlords and create a competitive bid for Ontrack’s lease commitment. Ontrack ultimately signed a lease at 5480 Valmont.

Following completion of the Ontrack lease, Grotewold compared the Ontrack lease to the lease that was signed by Homeseekers, and the results are shown below