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.