Objectives:
Dispose of surplus space Determine flexibility of ownership vs. leasing Explore tax issues Prepare market survey on available buildings Prepare market survey on available land sites Make recommendations to Board for approval
Results:
Disposed of one full floor in MacArthur Center, Irving, TX Reduced occupancy cost via sublease Identified buildings for lease and land for purchase Compared options of ownership/development vs. leasing of existing buildings Negotiated contract for purchase on best corner in Freeport Coordinated phase one and two testing Reviewed purchase contract
Identify lease options with building entry visibility Procure an above standard finish out allowance for specialized improvement requirements Manage and cost-engineer construction process Assist corporate attorney with negotiations of the lease documents Provide for a space reduction strategy in the configuration of the space
Found second floor atrium space with prominent visibility from building entry Negotiated long-term rate that is 20% below market Negotiated above standard improvement allowance Supervised construction of a one-of-a-kind office space resembling a "firehouse" Assisted with lease documentation Negotiated challenging commencement language in client's favor
Reduce overall costs Enhance image/create new identity Analyze and enhance space utilization Evaluate mechanical systems of existing building and other alternatives Analyze geographic area for employee retention and new hires Map employees and amenities with drive time analysis Analyze growth paths of four separate businesses Analyze feasibility of ownership vs. leasing
Evaluated all alternatives in and around Irving, Texas, including land and existing buildings Evaluated cost of ownership vs. lease Negotiated long-term sub $20.00 rate Negotiated high improvement allowance and enhanced Landlord base building Capped operating expense passthroughs over 2002 base, fully assessed Negotiated free covered parking structure - 530 total spaces Negotiated heavy landscape site Multiple telco service providers Negotiated flexibility to alter building design Coordinated lease documentation
Consolidate three locations (two owned, one leased) Lower occupancy and maintenance costs Evaluate, value and dispose of two owned facilities and excess land Create flexibility for expansion or contraction Expedite completion
Consolidated into campus facility (three buildings) with readily available expansion capabilities $7.0 million savings in out-of-pocket costs over ten years Disposed of owned facilities and land as part of new lease commitment to new Landlord Increases space efficiencies Obtained favorable tax incentives Completed on time and on budget
Enhance work environment to increase employee retention Optimize expansion options Identify existing/future employees by location Reduce occupancy costs Increase space efficiencies Provide redundant electric power Provide redundant phone service
Evaluated existing employees' location and drive times Prepared demographics for future employees Enhanced space efficiencies through creative space and building design Provided workout facilities with lockers and an employee lounge Increased parking to 600 parking spaces at no cost Negotiated extremely favorable lease terms including Phase II expansion rights 500 KVA back power generator, full UPS system and dual electrical supply from separate substations Also negotiated reduced electrical cost by creating a bidding situation between two utility companies Total saving/value added in negotiations: $2.5 million Negotiated for Landlord-enhanced base building Redundant dual loop for phone and data transmissions