Case Study: Tricky disposition and lease extension for regional headquarters

200 Airside Drive, Moon Township PA

All of the research information and financial data that Carrie Holstead put together for us was so complete during the lease review process that I could immediately turn it over to our CFO for analysis. The cost savings was important to us, and Carrie did a fabulous job of understanding our goals, leveraging our requirement, and negotiating a package that protects our real estate needs for the long term.

Jeanne D. Cotter, Vice President of Quality Veolia Water Solutions & Technologies, North America

Veolia Water Solutions & Technologies, North America

Challenge

N.A. Water Systems, LLC, a Veolia Water Solutions & Technologies company (VWS), is a world leader in engineering and technological solutions in water treatment for industrial and municipal authorities. Some eighteen months prior to the expiration of its regional headquarters lease, they turned to Carrie to dispose of approximately 30,000 square feet of office space and identify the best, long term leasing solution in the Pittsburgh, Pennsylvania area for future needs of the regional headquarters.

Action

Carrie launched a comprehensive subleasing campaign to dispose of office space no longer required. At the same time, she leveraged the market and entered into negotiations at multiple buildings suitable for VWS. The sublease campaign was successful and resulted in a credit worthy company desiring VWS’ extra space. The landlord rejected this sublease in order to accommodate a growing tenant at his complex. The landlords’ prospect fell through and it was too late to salvage the rejected sublease. Ultimately, attractive business terms were achieved at the current building.

Results

  • Carrie negotiated a cost savings of $1,650,000 at current bldg
  • Agreement to void all money due for 30,000 SF from the date Carrie’s sublease prospect intended to lease it
  • Early renewal with reduction to base rent
  • T.I. allowance of some $630,000
  • Renewal option at fixed rate (just exercised)
  • Ongoing right of first refusal
  • Sign privilege on building
  • Long term protections in multi-million dollar HQ lease
  • Veolia has enlisted Carrie multiple times

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For more information, contact Carrie S. Holstead at

+1 (412) 255- 3737
carrie@carrieholstead.com

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