Advertising & Media Client
This New York City-based advertising and media company had outgrown their existing 5,000 sf, full-floor space, but still had four and a half years reaming on their current lease. In addition, their existing lease offered very limited expansion options and limited landlord construction contribution toward any new tenant buildout.
The client sought Vestian for our creative solutions in relieving businesses of inadequate lease obligations. Vestian also helped the client seek and secure a new, larger space within a higher-quality building. Our NYC team excels in providing leverage in negotiations to ensure each client gains competitive advantage.
Vestian upgraded the client to a higher quality building with improved expansion options. The new space was three times larger than their existing space (15,000 sqft), yet Vestian negotiated a 33% base rental rate reduction on behalf of the client. Further, Vestian negotiated that the landlord would provide a turnkey, high-end buildout including above-standard electric capacity.
Vestian relieved the client of the previous space obligation through a unique deal structure with the client’s new landlord. Due to the fact that Manhattan’s office market was down at the time of the relocation, Vestian advised our client to not risk signing a new lease that was dependent on finding a subtenant for their existing space. This could have potentially put the client in a position of paying for two spaces. Instead, Vestian renegotiated the terms of a new agreement with the new landlord. The unique and advantageous agreement negotiated that the landlord would take over our client’s existing lease obligation by amortizing some of the expense back into the deal and would provide discount once a new tenant had been secured.
This solution eliminated the potential of $1.5 million in risk of subleasing the client’s current space in a challenging market; and also resulted in no sacrifice to the client’s preferred submarket.
Vestian’s solutions are best-in-class. We always employ a methodic and thorough approach to searching the market and implementing unconventional solutions to achieve the desired objectives. Our NYC team’s expert market knowledge combined with key landlord relationships allow us to source and execute the best possible deals.
- Relieved client of existing lease obligation, despite having 4.5 years left on the lease
- Upgraded the client to a new, modernized building with a full turnkey buildout paid for by the landlord
- 33% base rental rate reduction
- Expansion from 5,000 to 15,000rsf
- No sacrifice in preferred submarket
- Eliminated the potential $1.5 million dollar risk of subleasing the client’s current space in a challenging market