Challenge
Timken, a specialty steel manufacturer, launched a global initiative to increase sales in its Automotive division. A strategic component of this initiative was the establishment of automotive technical centers that combined sales and research and development functions. The initiative also addressed the final phases of the integration of operations of a recently acquired steel company. The company called upon Allegro to provide tenant representation services on the lease of a new 45,000 square foot facility, the structuring of a buyout of the company’s current office space, and the negotiation of economic incentives from the state and local government entities.
Solution
Allegro utilized its proven site selection methodology to meet the client’s needs. A full assessment of alternative facilities was conducted, short lists prepared, site visits conducted and landlord request-for-proposals issued. Allegro assisted the client in the selection of an architect to conduct initial space planning for the finalist facilities to ensure their usability and to design the tenant improvements for the project. Allegro conducted lease negotiations, leading to the consummation of the transaction. Additionally, Allegro negotiated the buyout of the client’s existing lease to enable overall project financial objectives to be met. Economic incentives for the project were negotiated with state and local government officials to further benefit the client. Allegro served as the lead negotiator with the State in securing the maximum incentives. Allegro’s unique compensation structure allowed the client to receive commission rebates from the lease transaction that were four times Allegro’s total fees.
