Challenge
Robert Brown LLC, an immigration law firm headquartered in Cleveland, Ohio, came to Allegro with a unique situation: they had recently entered into a five-year, 32,000 sq. ft. lease in the Western Reserve building. They had done so with projected growth expectations however, due to immigration reform and several changes stemming from the current Presidential administration, their firm’s growth very quickly exceeded their projected expectations and they almost immediately outgrew their space. The firm needed to find an alternative as soon as possible in order to continue to operate effectively and grow.
Further complicating the matter, the ownership group at the Western Reserve building was experiencing financial issues which put the building into receivership. As the outstanding issues associated with the building were slowly resolved, definitive ownership and direction regarding the building was minimal.
Solution
Allegro and Robert Brown went to market in order to identify alternatives and understand comparable costs. With three years left on their lease, finding a completely new space was an option however, Robert Brown would be left to sublease their current office which could present challenges.
During this time, the ownership questions at the Western Reserve building were resolved by a new ownership group, and Allegro and Robert Brown were able to structure a new deal. The landlord allowed Robert Brown to exit their current lease and enter into a new one for a different space within the building that was approximately double the size.
The new ownership group had plans to reposition the building by employing a completely different type of rent structure, completing structural changes, and investing capital into the common spaces. As a result, they were looking for a much higher rent rate than what Robert Brown had previously been paying. However, by utilizing the data collected through market research and capitalizing on relationship-based good will —leveraging Allegro’s history of leasing space within the building and the new ownership group— Allegro was able to negotiate a competitive lease rate, allowing Robert Brown the opportunity to continue their rapid growth.
