Parkland Management Company, an investment management firm with an office location in downtown Cleveland, was nearing its lease expiration date.
When evaluating its office space needs, Parkland determined that the current location no longer suited business operations. The existing layout included areas that were not utilized, meaning the company was paying for unnecessary square footage. There were also a number of features and amenities that the current space could not reasonably accommodate.
Parkland realized that they needed to reduce their space and update their layout to better reflect how they were using their office space. Thus, the team turned to Allegro as its exclusive tenant representative throughout the decision-making process and office build-out.
Identifying Selection Criteria Ahead of Office Relocation
Prior to relocating, Parkland identified top priorities and required features for the new office space. In general, the team sought a more efficient office. Moving operations to the cloud for the last several years meant Parkland no longer needed storage space for paper files.
Moreover, the team curated a specific list of build-out requirements that aligned with the company’s esteemed brand image. Allegro then negotiated a lease that included these specific requirements and high-end finishes in the monthly lease payments. Parkland was able to get exactly what they wanted without paying for the renovation costs out of pocket and without incurring any risk associated with changing construction costs.
Alongside a building architect, third-party designer, and landlord, Allegro worked to coordinate the construction of Parkland’s new office.
Navigating the Complexities of a Changing Office Build-Out
Many changes were made to the office design throughout the build-out process. As these adjustments occurred, Allegro, in conjunction with a third party owners representative, ensured that Parkland’s specific requirements were still correctly reflected in the architect’s plan as well as in the scope of work that was provided by the contractor.
It was critical that the specifications outlined in Parkland’s lease agreement were accurate, as any changes to those specs would result in an increased cost to Parkland.
Reducing Costs and Optimizing CRE With Turnkey Build-Out
With the build-out complete and all details aligned with the original lease agreement, Parkland officially moved into their custom-built office. Not only did the new space effectively meet Parkland’s needs, but the efficient layout also reduced the company’s overall real estate costs. In the end, the new office saved Parkland more than $100,000 in rent per year.
Could you use support managing your next CRE transaction? We can help. Contact us to discuss your real estate needs today.
