A rapidly growing internet publishing company occupied space in two lower Manhattan buildings under sublease arrangements that did not include any options for expansion. The company was growing rapidly and decided to consolidate its newsroom, media and reporting operations in a single location while securing expansion space for future growth. Principals of Interrelate Group were engaged to find cost-effective space that had a recent open-layout office installation, and, if possible, with existing furniture and equipment. The company was growing rapidly which necessitated an immediate occupancy date.
Course of Action
We discovered an unusual opportunity that involved a potential sublease from a magazine publishing company in a downtown Class-A office building. The space was built in a configuration that accommodated our client’s needs extremely well. Although the magazine was in the process of moving its offices to another location and had submitted another potential sublease to its sub-landlord for approval and consent, we were able to achieve a buyout of the existing sub-leasehold by the sub-landlord and negotiated a new direct lease transaction for our client. Our team negotiated a transaction covering one and one half floors of office space at a sharply reduced overall rental rate, taking advantage of the fact that our client did not require any capital to rebuild the space.
Our client is currently enjoying fully furnished space that meets its operational needs at a rental rate that is less than half of the current market valuation for the building.