Challenge
Reminger LPA (Reminger) is a law firm that has 11 locations with a host of practice areas including all forms of litigation, estate and probate, and corporate and business law. The firm occupied close to 70,000 square feet on two separate floors and in two separate buildings in the Sherwin Williams office complex in Cleveland’s Public Square. Reminger’s space needed reconfiguration and substantial upgrades to improve aesthetics and efficiency, which would require a significant capital investment. With a little more than three years left on its lease, the firm recognized that it was time to begin developing its real estate strategy. Reminger engaged Allegro to lead the principle decision makers through a strategic process, resulting in an informed real estate decision that reflects the best interest of the firm.
Solution
Allegro developed a project strategy and scope of work focused on achieving Reminger’s key objectives of operational efficiency and upgraded image meeting the firm’s budget. Allegro initiated and, together with Reminger, maintained consistent communication with the current landlord to negotiate the terms of an early lease restructure/renewal. Concurrently, Allegro identified alternative occupancy scenarios and prepared financial models and occupancy timelines for a qualitative and quantitative comparison of the short-listed options. Allegro also supported the selection and engagement of an architect to prepare space plans and provide construction estimates, allowing Reminger to fully understand the financial and operational implications of relocation versus reconfiguration of the existing space.
Ultimately, a lease restructure was negotiated with the current landlord that allowed Reminger to gain efficiencies by giving back a portion of the space without penalty. Included in the negotiation was a very generous tenant improvement package, allowing Reminger to redesign and upgrade portions of the space for an aesthetic commensurate with Reminger’s desired image. The final deal terms resulted in substantial savings over the life of the lease.
Update
Due to the success of the headquarters negotiation, Reminger has engaged Allegro as its corporate real estate service provider to manage all of its office lease transactions.
