The firm also requested that Equitable Real Estate do a market study of the location and migration patterns of a significant number of its clients, architectural firms.
Boston is growing as the new Seaport District opens. This growth is perceived to be shifting the city’s center of gravity. The company needed information on these important issues and more to make an informed choice about its future home. Given the substantial number of partners in the firm, getting to a consensus on the criteria was key to maintaining harmony.
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Stantec is a company that specializes in landscape architecture and civil engineering services to real estate developers, corporate and commercial building owners and municipalities. Stantec had been at its current location at 77 North Washington Street for over 15 years in approximately 6,500 rentable square feet. After assessing its growth needs with a proper space planning program, Stantec needed up to 10,000 rentable square feet.
After a comprehensive study of the issues and a multiple submarket survey, Equitable set up tours for the business manager. The partners were shown the “short list” of properties. The properties were narrowed down further to four, including their existing building, which would be engaged in negotiations. Market rents were running $25 to $29 per square foot. The initial offer from 141 Portland Street was “below market” because its landlord was offering almost no tenant improvements. Also missing were elements key to Stantec such as rights to expand, extend and terminate the lease and a reasonable security deposit.
The transaction negotiated by Equitable Real Estate Solutions resulted in rent starting at $22.50, one month of free rent, a right to terminate the lease obligation after year five, $45 per square foot in tenant improvements (a three-fold increase), three months security deposit (half of the original offer), rent relief of 15% in year one, a full renovation to the building lobby, building signage and an artificial reduction of the building’s loss factor to 0%.
The result netted in excess of 30% in savings to Stantec. Our project managers oversaw the relocation for Stantec.
Please feel free to contact Mr. Joseph Geller, Partner, at 617-523-8103.