THE CHALLENGE

Lynn Drake was hired to find an industrial building 20,000 s.f. or larger with cranes in the tri-county area.

WHAT WE DID

After searching the market and making multiple offers the best solution was the purchase of 75 Bart Ave, Warren, MI.

THE RESULTS

• The building purchased had 10,000 s.f. more than initially required. Today they are using 100% of the building and running 3 shifts.
• The building had three separate areas with a crane in each area.
• The site is significantly bigger than the buildings so there is room for expansion.

The purchase price came in 30% below the appraised value.

Pictures from Pioneer Plastics Website

THE CHALLENGE

Our client wanted to purchase a minimum 10,000-square-foot building at M-59 and Van Dyke. She had been to the bank and was fully qualified to purchase such a building. Our job was to identify one for purchase.

WHAT WE DID

With the economy pushing prices up, there weren’t a lot of buildings for sale. Most of the ones we found were either 30% to 50% above market price or hadn’t been maintained properly. After looking for several months, we found a building that had recently been reduced in price and didn’t appear to need a lot of work.

We negotiated an inspection period of 30 days to check out the building. Unfortunately (or fortunately, depending on your point of view) the building hadn’t been well maintained and would require over $100,000 in repairs. The sellers weren’t willing to make any adjustment to the sale price, therefore my client walked away, and her deposit was returned. This process of discovery saved her a great deal of money and heartache.

We continued to search the commercial mls and sent all the agents in the area an email asking them whether they had a building for sale. One reached out to us with a building that hadn’t been listed and was located a block from the requested intersection.

THE RESULTS

• A letter of intent was sent to the listing agent within 24 hours and a purchase agreement was signed within one week.
• The building inspection found only a few minor repairs to be necessary.
• The building had over 20,000 square feet of space total. With the major tenant moving out, freeing up 10,000 square feet, the client had the exact square footage she needed for her business.
• The building had 10 remaining tenants and all of the leases were sent to us for review.
• There were no issues found with the title work or environmental and building maintenance during the due diligence, and the building closed 45 days after the purchase agreement was signed.

“Working with Lynn Drake and the team at Compass Commercial was crucial in finding and getting the building I was looking for. When the realtor for the building we were looking at was non-responsive, Lynn went above and beyond to track down the owner of the property and make him aware we were interested in the building. If you want someone who works to get you what you want at the best price, hire Lynn and her team at Compass Commercial.”

“Thank you so much for your hard work, persistence and the personal care you provided in helping us find the “right” building. Your efforts are much appreciated.”

-Misty Delegato, Founder, Relevar Home Care

Photos obtained from Bing Images, realestateone.com

THE CHALLENGE

Excellerate Associates offers training classes and coaching for businesses. Excellerate leased space on a month-to-month basis in a two-story building in Livonia, where they were a tenant for about 14 years. The building owner ran his business out of the same building. As the building owner’s business grew, he kept reducing Excellerate’s space. In 2017, the building’s owner decided to buy a larger building for his growing business, and he put the entire building that included Excellerate’s space up for lease. The building’s owner somehow forgot to mention this to Excellerate and only gave them two weeks’ notice that they would no longer have a space. Finally, he agreed to give Excellerate an extension through the end of the year, which gave the business’s owner, Lisa Mininni, about 4 months to find and purchase a building. Lisa wanted to expand her business so that she could hold seminars for up to 100 people on site; plus, she wanted to open a coworking space for small business owners.

WHAT WE DID

We asked Lisa to determine her budget and talk to a bank to determine how much of a mortgage she would qualify for. We discussed the ideal location, building size, and parking requirements. We completed a site search on the various multiple listing services and sent an email to all the commercial agents in the market.

THE RESULTS

Compass identified a substantial number of properties for sale in the requested search area. We toured 4 locations and put in an offer at 38221 Plymouth Livonia. Compass negotiated a 20% sales price reduction, and we provided a timeline showing key dates for the client to follow. The closing was just days before Christmas, which Excellerate got to celebrate in their new, permanent home.

Photos Received from Lisa Mininni, ExcellerateAssociates.com

THE CHALLENGE

The Art of Custom Framing was leasing a building located in Clawson, Michigan. There was a structural issue with the building, which caused water from below the cement floor to seep through the floor, leaving puddles in the storage area. This was a huge liability for a business that works primarily with paper. Moreover, the Tenant’s business had grown substantially, and they needed to double their space. Their lease was set to expire in a year.

WHAT WE DID

Compass Commercial was hired to find a building to purchase in the same area. Compass asked the client (coincidently, named Art) to go the bank to get preapproved for a commercial mortgage, while we sent out emails to both commercial agents and residential agents in the area looking for buildings for sale between 10,000 and 20,000 s.f.

THE RESULTS

Compass literally found The Art of Custom Framing the most uniquely ideal building possible. This 20,000 s.f. building on Rochester Rd. in Troy, MI was formerly a racquet ball club. The racquet ball courts were still intact, including the hardwood floors in each court, which turned out to provide the ideal place to feature artists’ work.

The company that had purchased the facility after the club closed had converted the 2nd floor into storage with a wide stairwell and elevator. Half of the second floor was leased out to a company that teaches archery to kids and adults. Compass negotiated a lease for the archery company to take over the entire 2nd floor. This helped significantly reduce Art’s rent. In addition, the archery tenant brought prospective clients into the building who had time to shop while their kids practiced.

Just 2.5 miles north of their old location, The Art of Custom Framing is now on one of the most traveled streets in Oakland County. The number of clients visiting the store skyrocketed due to the new location, which increased the revenue for the building.

THE CHALLENGE

The GS had been in a long-term lease at the “Fischer building “in Detroit, Michigan. Their rent was significantly over market value, and they had more square footage then they needed.

During their occupancy, the GS faced many issues as a tenant in this building. These included the building going into bankruptcy, continual maintenance issues that caused property damage to the space and furniture, and osprey (a protected bird) building nests next to the windows so that the tenants couldn’t use the adjacent space.

Compass was tasked with identifying potential buildings to lease in the Detroit market that didn’t charge for parking.

WHAT WE DID

More than 20 potential buildings were identified. The team toured 7 buildings and made three requests for proposals. One of the buildings under consideration was the “Fischer building”. The building had been purchased out of bankruptcy, and the new landlord was working to catch up on the maintenance. However, while doing site plans for the space, they discovered that there were so many columns in the proposed space that it couldn’t be laid out very efficiently.

THE RESULTS

Negotiations on the remaining locations
were completed simultaneously. In the end, they chose 1333 Brewery Park. Compass negotiated the following points on the GS’s behalf:

• Total savings per year in the new location: $305,150/year over a 10-year period for an overall reduction of more than $3M.
• Included an annual rental reduction of over 20%.
• Included an annual reduction in expenses of .90/s.f. for water (this charge is not usually a pass-through expense in most office buildings).
• Included an annual reduction of operating expenses by .30/s.f.
• Included a reduction of square footage by 41%, which was due to changing to an open work environment and eliminating several existing columns in the space.
• New landlord contributed $25.00/s.f. toward the build out.
• Tenant signed a 10-year lease with the ability to cancel the lease in the 7th year.
• Fenced in safe campus area with security 24/7.
• Free parking for all employees and visitors.
• Four free designated parking spaces directly in front of the tenant’s new space.
• Four free covered spaces for senior staff.
• Facility includes a loading dock that can be used for loading and unloading cookies.
• New landlord is well respected for integrity and maintains the complex in pristine condition.

“I say, before you go out and start looking to lease office space, talk to Lynn Drake!”

-Denise Dalrymple, CEO, Girl Scouts of Southeastern Michigan

THE CHALLENGE

Motor City Dance Factory was in a 5,000 sq. ft, one-story office building in Southfield, Michigan. Their original location did not have high enough ceilings for the dancers and gymnasts. There was not enough parking, and the business had outgrown the space long ago.

WHAT WE DID

Compass Commercial worked with the business owner to help her determine how many square feet the business required, and which zoning codes permitted the use of the space. We reviewed location parameters, identified several potential locations, prepared requests for proposals, and completed financial summaries for each location.

THE RESULTS

Five locations were identified as possibilities. Requests for proposals were sent out to the top three locations. The client leased a 14,000 sq. ft. space at 21630 Melrose, Southfield, Michigan.

• The first four months were free.
• The landlord delivered a turnkey build out, excluding dance floors.
• The tenant received the right to add signage to the building.
• The space included an exclusive parking area.
• The lease included a renewal option.
• There was a cap of $1,000 on replacement or repair of 4 heating and cooling units.

THE CHALLENGE

The State of Michigan needed a new location for their Secretary of State office in Roseville, MI, because the location under lease did not have enough parking for their visitors.

The State had outsourced their real estate acquisitions to 5 commercial real estate companies operating in Oakland County, including Compass Commercial. Originally, assigned this project, one of the other outsourced providers was not able to find an acceptable location. Compass Commercial was then asked to find a location within the same search area.

WHAT WE DID

We used three methods to identify potential buildings. First, we completed a search on the commercial multiple listing service called Costar and Cpix; sent an email to all agents plus a list of developers across the metro area; then the search ring was driven. Calls were made to all potential prospects. Zoning was researched to make sure all submitted sites met the city’s zoning criteria.

THE RESULTS

Compass found 5 buildings that had not been submitted initially when the request for proposal was sent out.

We set up a tour for the State’s team. Two of the 5 submitted sites were visited, and a build-to-suit at 18809 E. Nine Mile, Roseville, Michigan was chosen. The development company, Pattah Development, oversaw the beautiful build to suite of the space you see above for the Secretary of State.

• The new location had twice as much parking as the prior location.
• The building was built to the State’s specs.
• The rental rate was below market rate.

Picture obtained from Pattah Development

USA Success Stories

THE CHALLENGE

Compass Commercial was charged with executing a few initiatives for the LLS, including determining the number of existing locations, developing a processing to save end users time and money, creating a pertinent information database, managing renewals and relocations for the 100 leases LLS holds across the United States and Canada, establishing space use standards, and determining uniform non-monetary business lease terms.

WHAT WE DID

One of the first things Compass Commercial did was consolidate the Society’s lease data into a centralized database. The team then developed a website to track expiration dates, renewals and cancellations.

The Society had a higher than average turnover on relocations. Staff often had to move into locations that were smaller than what was required, causing spatial issues within six months of occupancy.

Once a tenant moves into a space, they lose negotiating power. A review of LLS leases showed that many of the lease agreements the Society had signed had inconsistent terms. Some had local offices responsible for capital improvements far outside their budget parameters.

The Society is fiscally strong, but they were paying security deposits on several properties – money that could have been used elsewhere. 80% of leases contained clauses requiring them to reimburse the landlord for legal fees.

THE RESULTS

• Compass Commercial achieved a total rent reduction of $13M over a six-year period for the LLS. The team also reduced unnecessary relocations by establishing standardized space requirements.
• False starts were eliminated by 80% in year two of the account, and concrete non-monetary lease guidelines were established, substantially reducing the Society’s risk.
• The team also eliminated payout of security deposits, and deposits were returned upon lease renewal. Missed lease options were eliminated, and a smooth renewal and relocation system was created, ensuring things went well from inception to lease execution.
• Additionally, the team eliminated holdover expenses by ensuring leases were signed in appropriate time frames.

“Lynn Drake has worked with The Leukemia and Lymphoma Society for many years and has become an integral part of our team. The savings for the Society has been tremendous. Many of these savings were realized even before the downturn in the economy. I would highly recommend her work to anyone wishing to hire an experienced talented tenant representative.”

Rich Colbert, Vice President of Real Estate and Facilities, LLS

THE CHALLENGE

The Leukemia & Lymphoma Society was happy with the overall space in Atlanta, GA however, they felt they were significantly overpaying. Compass was to determine if they should relocate or renew.

WHAT WE DID

After identifying the right sized office space and location, it was determined that The Society should not relocate.

THE RESULTS

• The appropriately sized office needed to include future growth needs.
• These parameters were used to determine possible locations in the market. The Atlanta office market had significant vacancies. Over 20 properties were identified. After touring 10 locations, it was narrowed down to 6 as the best possible options.
• Proposals and financial summaries were prepared for each of the final locations including the current location.
• The final analysis showed the best option for LLS was to renew at their current location.
• By not relocating the Society saved a significant amount of money. The Landlord agreed to donate storage space and build out three new offices within the space.
• The overall savings on the renewal was $285,000.

There was an overall savings of 35%.

THE CHALLENGE

Our clients LLS had outgrown their current office space – and with 18 months remaining on the lease, they found themselves needing to move sooner rather than later. Their initial lease had been signed without any sort of tenant representation, and as a result, they had overpaid for their current space, and had very little rights within their lease.

WHAT WE DID

Compass was initially charged with expanding their office space in their current building in hopes of meeting their growing staff requirements. At the time, there were several subleases in the building that would have worked for them. However, the landlord in question denied LLS the right to sublease in the building, telling them they could either lease an entire floor or nothing at all.

Since getting additional space in the building was out of the question, we took a closer look at their space, and found an area that could be reworked in order to give them immediate relief. We also helped them find contractors to do the work, so that they could get organized quickly and get back to their most efficient working style.

Even with these immediate measures, there was still the issue of outgrowing their space. Our team determined the appropriate size for them going forward – a space that would allow for growth. Then, we worked to define locational parameters, set within a specific number of blocks from the current location

THE RESULTS

• Compass Commercial achieved a total rental reduction of $5M over a 10-year term in a new building.
• The entire first year was negotiated to be rent-free so there would be no double payments of rent.
• We negotiated over 2,000 s.f. of the space to be donated to the tenant for the entire lease term.
• Turn-key improvements were negotiated.
• A lease with fair terms for both the tenant and the landlord were negotiated.
• The new space leased for LSS was one that is laid out much more efficiently.

THE CHALLENGE

The Leukemia and Lymphoma Society of Hauppauge had been in a Class B office building on Long Island for many years. Over the years, the rent had increased to over $25/square foot.

In those years, the staff had grown significantly, and the Society needed an additional 1,400 square feet. The current location did not have any adjoining space the tenant could lease, and the area in which the space was located was primarily residential, leaving few possibilities in terms of location.

WHAT WE DID

The team at Compass Commercial extended the search parameters by a 10-mile radius, and six potential locations were identified within the search area.

THE RESULTS

• Compass Commercial ensured that the landlord provided a turnkey space for the tenant, and the tenant was given signage in the new location.
• In addition, the rental rate was negotiated to be 50% less than what they were paying in the original location. The landlord also donated 500 square feet of space to the Society during the original term and the renewal term of the lease. Total savings negotiated for the Society in Hauppauge was in excess of $315,000.

THE CHALLENGE

The San Francisco real estate market is one of the most volatile markets in the United States. Over the last ten years, prices have swung from as little as $35/square foot to $100/square foot.

Unfortunately, the Society got into the commercial real estate market just as the dot com companies started expanding at an accelerated rate, back in 1999. To complicate things further, the company’s lease was a 10-year lease with no options to cancel. With the increases in the base year costs, along with the construction costs, the additional costs on the lease were almost as expensive as the rent itself.

WHAT WE DID

After reviewing how many square feet the Society needed, it was determined that there was approximately 4,000 square feet of unused space in the current office.

By July of 2007, the team at Compass Commercial had found a subtenant to lease the excess space, making the best of the situation at the time.

In 2009, a site search was started to find a new office for the Society in a safer part of town. Four key buildings were identified as possibilities, and RFP’s were sent out to all four landlords. After negotiations, the best choice was determined to be 221 Main Street, San Francisco.

THE RESULTS

• Compass Commercial determined that there was unused space in the current office location, and hence, sought out a new, more appropriately sized location for the Society in a safer neighborhood.
• In the new space, the Society received a turnkey build out customized to meet their needs, and received the first four months of rent free, which brought the savings down in the first year alone to $500,000 with a total savings of $2,772,540. This equated to a 50% reduction in rent over the new term of the lease.

International Success Stories

THE CHALLENGE

Ellivo, a high-end boutique architecture and design firm, located in Brisbane has recently settled into their new home at 88 Creek Street in Brisbane’s CBD with the help of ACORPP. Ellivo was previously located in Fortitude Valley. ACORPP worked with them through their future business proposition which resulted in a decision to relocate to the city center.

WHAT WE DID

As Ellivo’s tenant representative, we sourced several space options before negotiating an outstanding lease agreement, securing 378sqm of office space.

THE RESULTS

The space at 88 Creek Street originally comprised an old and dated fit out. ACORPP negotiated with the owner’s agent to have the landlord remove all fit out and provide a bare shell at no cost to Ellivo. “That was just one of the many areas where we were able to help Ellivo reduce outlays,” ACORPP director Danni Toshack said.
Ellivo was able to save more than $300,000 by using ACORPP’s expertise.

Photography by Mindi Cooke
Information gathered from ACCORP

THE CHALLENGE

OccPhyz is a new collaborative of leading occupational environmental physicians. These specialists assess and manage all aspects of medico-legal practice across Queensland.

WHAT WE DID

ACORPP sourced and negotiated a lease on the spacious new premises that needed to meet specific location, size and budget requirements. ACORPP Brisbane’s increasing profile and expertise in the medical sector guided OccPhyz on understanding how much space each physician required, costs for a specialized fit out and how the overall project would need to meet Queensland health code requirements.

Senior Property Consultant Danni Toshack said start-up costs for a new entity meant lease terms and structure were crucial to future success. “Our property advisory team did what we do best and provided independent tenant representation services and conducted the negotiation with tailored lease terms,” she said. “These specific terms were unique to this client and their strategic business needs.”

THE RESULTS

Danni said OccPhyz were now established in their new environment and were doing what they did best: providing medical and health-based services to community and corporate clients throughout Queensland. “It’s a great example of two sets of professionals working at their specific strengths – they appreciated that we could add great value by representing them in the end-to-end leasing process.”

Photos: Supplied by Archway Commercial Interiors.
Information gathered from ACCORP

THE CHALLENGE

Lagardère Travel Retail Singapore is a division of Lagardère Asia Pacific. The company is a leader in travel retail, with stores in major transport hubs in the region.

Lagardère was looking to consolidate their Singapore office and Asian HQ into one single site. They required a 6,000 sq.ft office that reflected their brand and values and was close to all amenities and public transport (direct access to the MRT stations along the East-West line was a must). The company also wanted their new space to be close to both Changi Airports and the CBD.
Tenant CS was appointed to conduct a site search on behalf of Lagardère.

WHAT WE DID

• Audit of the existing premises (including lease review, site inspection, and market analysis)
• Needs assessment for the new facility
• Singapore market analysis and site selection
• Building inspections
• Financial feasibility of options shortlisted
• Negotiation of new lease terms

THE RESULTS

Tenant CS found a suitable office space (6,500 sq.ft) within the SingPost building in the new city precinct and regional hub of Paya Lebar.

The SingPost building features a newly renovated lobby, competitive rental rates and is near Changi Airports and the CBD. Plus, with the Paya Lebar MRT Interchange within walking distance, employees now enjoy easy access to different pockets of Singapore via the East-West Line and the Circle line.

Information gathered from Tenant CS

THE CHALLENGE

CXC Global is a leading provider of contractor management solutions with offices in 69 countries and across 5 continents.

With a planned growth in headcount, upcoming lease expiry and imminent increase in their commercial rent, remaining in the existing premises was not an option. Yet, good alternatives appeared to be very limited.

CXC engaged Tenant CS to help them gain the upper hand in a tight market, with a particular focus on ‘off-market’ opportunities in Sydney CBD and North Sydney and negotiating a tenant-friendly lease.

WHAT WE DID

• Audit of the existing premises (including lease review, site inspection, and market analysis)
• Needs assessment for the new facility
• Singapore market analysis and site selection
• Building inspections
• Financial feasibility of options shortlisted
• Negotiation of new lease terms

THE RESULTS

Tenant CS found a suitable office space (6,500 sq.ft) within the SingPost building in the new city precinct and regional hub of Paya Lebar.
The SingPost building features a newly renovated lobby, competitive rental rates and is near Changi Airports and the CBD. Plus, with the Paya Lebar MRT Interchange within walking distance, employees now enjoy easy access to different pockets of Singapore via the East-West Line and the Circle line.

Information gathered from Tenant CS

THE CHALLENGE

Samsung Electronics appointed Tenant CS to search for new office space in Adelaide and negotiate & finalize tenant friendly lease terms.

The existing building no longer met the requirements and the company wanted to ‘future-proof’ the work space.

It was important that the new building would meet the corporate guidelines. As such, it needed to be in a prominent location and provide excellent signage possibilities. All the requirements were captured in a detailed Market Brief.

WHAT WE DID

• Brief sent to market; only suitable properties were presented to the client for smooth review
• Two rounds of inspections identifying the most suitable properties
• Negotiations took place for shortlisted options and the
• Outcome was modelled in a financial analysis
• Financial feasibility of options shortlisted
• Business case provided from which the client selected the most suitable option for final negotiations

THE RESULTS

After scoping the entire market, Samsung was shown the most suitable properties and was able to select the best available option.

The finalized commercial terms were very favorable, however unexpectedly the lease execution was delayed. This impacted the planned fit out works and timing significantly. Through vigorous communication with the landlord, Tenant CS was able to push out the lease commencement date, so no time was lost to Samsung.

Information gathered from Tenant CS

THE CHALLENGE

The acquisition of a new London headquarters of 13,228 sq ft combined with a subsequent 6,666 sq ft subletting to a global online job board business.

WHAT WE DID

Negotiated an initial $1.563 million concession and subsequently realized a $20.84 per sq ft profit rent.

THE RESULTS

Saved over $1.563 million over the first 5 years of the term and achieved a $20.84 per sq ft profit rent on subletting 6,666 sq ft.

With offices in London and Seattle, ATG’s websites and online bidding platforms (the-saleroom.com, i-bidder.com, BidSpotter.co.uk and BidSpotter.com) are internationally recognized as the best in the business with exceptional brand recognition.

Bidders from around the world can browse fully illustrated sale catalogues and place bids over the internet in real time with live audio and video feeds delivering the auction room atmosphere. Bidders are also able to participate in timed, online only auctions.

Information gathered from The Levy Group

THE CHALLENGE

New London Headquarter office acquisition and a simultaneous sub-letting to a major hedge fund. An aggregate of 22,590 sq ft over the two deals.

WHAT WE DID

Saved more than $2.68 million over the first 5 years of the term.

THE RESULTS

Achieved more than $2.68 million over the first 5 years of the lease.

OTPP is Canada’s largest single-profession pension plan with $171.4 billion in net assets paying pensions and invest plan assets on behalf of 316,000 working and retired teachers.

Since their establishment and an independent organization in 1990 Teachers’ has built an international reputation for innovation and leadership in investment management and member services.

Information gathered from The Levy Group

THE CHALLENGE

New headquarter acquisition of 1,8330 sq ft.

WHAT WE DID

Saved over $117,000 over the first 5 years of the term.

THE RESULTS

More than $117,000 over the first 5 years of the lease.

MCA is the representative body for management consultancy firms in the UK and has been at the heart of the UK Consulting Industry since 1956.

The MCA’s mission is to promote the value of management consultancy for the economy and society as a whole. MCA’s member companies comprise around 60% of the UK consulting industry, employing around 38,000 consultants and work with over 90 of the top FTSE 100 companies and almost all parts of the public sector. The UK consulting industry is amongst the best in the world and a vital part of the business landscape.

Information gathered from The Levy Group