BestMed Inc. was faced with an approaching lease expiration.  Prior to BestMed’s relationship with Rare Space Inc., their existing landlord had proposed a 5 year lease renewal for their current space with no increase on the current rental rate and no other landlord concessions or improvements.

Rare Space was retained by BestMed to assist in the search and acquisition of new space, while simultaneously attempting to improve the proposal from their existing landlord.  Rare Space utilized the following proven renewal process:

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

This process resulted in BestMed’s existing landlord offering 10,800 SF of new space, built to BestMed’s exact specification for a significantly lower effective lease rate.  See the table below for a side-by-side comparison.

CONCLUSION:  By utilizing Rare Space’s services, BestMed was able to reduce its occupancy costs by over $100,000 and dramatically improve its space allocation and design.  This has significantly benefited BestMed’s financial bottom line and operational efficiencies.

Proligo LLC is part of a $30 billion international biotech firm headquartered in Germany, with offices in Boulder, CO, San Diego, CA, and Canada. Rare Space was engaged to help Proligo in the consolidation of its Boulder operations into one or two facilities. The project required a comprehensive facility needs analysis including mechanical, electrical and plumbing capabilities, and an extensive facility pre-qualification process. Based on the facility needs analysis, and a scattergram of Proligo’s employees, we determined that the company would need approximately 50,000 square feet in a single story building with overstandard water and power capabilities in the greater Boulder County area.

Over the next 12 months, Rare Space Inc. worked as a team with Proligo to pre-qualify and tour several dozen facilities in Boulder County. The goal was to identify three or four viable alternatives and simultaneously negotiate non-binding proposals with each property. Rare Space input the proposed financial data into its proprietary lease analysis software program and presented a side by side financial comparison of the alternatives. The strategy of negotiating with multiple buildings created leverage for Proligo, and subsequently maximized the incentives that Proligo received.

Proligo planned to build approximately 22,000 square feet of lab space to research and manufacture DNA and RNA oligonucleotides. Because lab space is very expensive to build (up to $350/SF), Proligo elected to sign a 10 year lease term allowing them to amortize the cost of the tenant improvements and maximizing their incentives. The financial analysis and evaluation of the proposals was extremely thorough and comprehensive, as was the interview and selection process of the general contractor handling the build out.

Proligo ultimately selected blue chip real estate partners - Turner Construction as the general contractor, WW Reynolds and Chrisman Commercial as their Landlords. Rare Space Inc. is very proud to have successfully represented Proligo through this major real estate transaction.

Byers Peak’s simplified business approach keeps the focus on their customer’s product. They are contract manufacturing experts with simple to complex electro-mechanical devices, products and systems for the medical and technology marketplace. Their business model specializes in assisting customers with forecasted volumes that require a great deal of flexibility. Byers Peak offers its customers the best service possible; with a customer-first, open-book, and no-hassle business platform.

Rare Space Inc. worked with the company for 15 months before identifying the ideal 30,000 square foot building that was for sale at $1.3 million. About 30 percent of the building's space is office, 30 percent engineering and production, with the remaining 40 percent used for warehouse and distribution. The building is located within the I-70 corridor and has a close proximity to Byers Peak’s largest customer. It features excellent loading via dock-high doors and drive-in doors, as well as a clear height of 18 feet.

Due to some unforeseen financing issues, in addition to negotiating the purchase price, Rare Space was required to negotiate a five year lease with an option to purchase at a predetermined price. Additionally the Landlord was required to make numerous improvements to the building prior to occupancy by Byers Peak.

Issues Addressed – Clark Synthesis was seeking a low cost commercial real estate deal in the southwest market; when Rare Space was signed by this new client negotiations were already underway on an older inefficient building.

Solutions Created & Presented by Rare Space – Knowing that the southwest market presents very low differentiations in lease rates from building to building, Rare Space was able to convey to Clark Synthesis that they needed to place functionality as a top priority in choosing a building.  This said we were able to present our client with several options that fell within their target budget and one that exceeded expectations regarding both internal and external appearance and efficiencies.

Benefit to Clark Synthesis Inc. – Clark Synthesis was looking for a low cost option in a fairly tight real estate market.  Rare Space identified an ideal location for our client and subsequently negotiated to have the space built to Clark Synthesis’ exact needs.  Build out was done at the landlords cost and allowed our client to move into a space which met all of the firm’s real estate criteria.