Issue:
Safety Equipment Distributor had two separate facilities which needed to be combined into a single facility, plus an additional expansion of another 50,000 SF.
Solution:
Avocat looked at staying in both existing facilities and trying to expand one of them, 2nd generation relocation space and 1st generation space (for large big facility), negotiated all options and provided an analysis on the best financial option.
Result:
Safety Equipment Distributor determined that the best financial option was to combine the two spaces into one with additional space for their expanded operations. The outcome was that we were able to take them from a combined total of 46,200 SF to a 2nd generation 100,000 SF space for a net annual increase of $138,000 over a 5-year term. That meant reducing their blended rate of $5.47 in their existing facilities to a starting rate of $4.44 with a few months of free rent and a large tenant improvement allowance. So, they were able to move to a newer facility, built out more efficiently than their other spaces, at a lower cost/SF than they were currently paying in older buildings.
