CASE STUDIES
Case Study 1: Wood Group PLC – Brisbane CBD
Deal Improved by over $500,000.
PROJECT BACKGROUND
To accommodate business growth in its Brisbane office, global engineering consultancy Wood Group needed to take on additional office space. It engaged Sq.m Consulting to assist with the process.
PROJECT TASKS
- Review of Wood’s existing leases, future requirements and the lease offer from Wood’s existing landlord.
- Wider market search to identify & quantify other available tenancy listings suitable for Wood’s requirement.
- “Stay/ go analysis”: Financial analysis of all options for Wood executive consideration and decision-making.
- Negotiation of final lease proposal (existing premises)
PROJECT OUTCOME
- Assistance with process, decision-making, time & money savings
- A negotiated increase of 60% in cash incentive
- Reduction in rent, make good obligations, early-access entitlements & other improvements
- Overall deal improvements exceeding $500,000
WHAT OUR CLIENT SAID
“Richard’s knowledge of the Brisbane real estate market and leveraging that knowledge in negotiating a better outcome is superb. This is the second time we’ve used Richard to negotiate a deal on our behalf in the last 2 years, and I wouldn’t hesitate in utilising his services again.”
Steve Ciccone
Regional Director – Wood
PROJECT BACKGROUND
PT Partners lease was due to expire in six months. It had a five year option available
The landlord had advised that, under the option, the rent would increase by 4% with no incentive
PT Partners were happy with the building however wanted to consider other options.
If it did remain at the building a fitout refurbishment would be required
PROJECT TASKS
- Circulation of Tenancy Brief (encompassing defined criteria) to all active leasing agents/landlords in the target market
- Qualification of submissions, conducting of inspections, ID of tenancy issues, ID of preferred alternative option and clarification of commercial terms.
- Completion of “stay/ go” analysis providing a financial reconciliation of both options.
- Negotiation of lease proposal with existing landlord
PROJECT OUTCOME
- Assistance with process, decision-making, time & money savings
- Negotiated reduction in rent by 12% – instead of the original proposed 4% increase
- Negotiated landlord contribution of $125,000 to fitout refurbishment
- Removal of make good liability at end of lease (approximate cost of $120,000)
- Removal of unfavorable clauses in current lease including demolition and relocation clauses
- Other minor savings
WHAT OUR CLIENT SAID
“It is fair to say we would never have achieved the wonderful outcome and substantial savings had we not engaged Richard to manage the process and I actively recommend Sqm Consulting services to my clients”.
Kellie Powell
Director – PT Partners
