Oil and Gas CompanyChallenge:
This Oil and Gas Company sought Vestian to replace their previous broker due to our tenant-only, no conflict platform and approach. Vestian was originally hired to sublease two floors (48,000 sq ft) of the client’s 96,000 sq ft Dallas lease.
Adding complexity, about three months into the process, we were notified that the company was about to enter into a Chapter 11 bankruptcy. Vestian informed the client of their options, specifically the opportunity to reject their leases once bankruptcy is exited.
There were three leases throughout Texas now in question - 96k sqft in Dallas, 9k sqft in Houston, and 4k sqft in San Antonio. Vestian helped the client effectively and successfully navigate this complicated process with their respective landlords.
Adding to Vestian’s scope, the client’s Board of Directors then decided to move the headquarters to Houston. The client challenged Vestian to locate a Class-A property, rich in amenities within certain location parameters.Solution:
Vestian started the process of identifying large subleases with the intent to sign a new lease once the client had successfully exited bankruptcy. After the nine-month process, Vestian helped the client exit Chapter 11. Vestian then identified and secured their new, full floor, 25,000 sqft office space and entered into a seven-year lease.
In order to provide the client the best real estate solutions, Vestian created a detailed market report with numerous options within certain location parameters. Vestian then collaborated with the client’s executive team to identify which locations worked best for a long-term relationship. In addition, we provided a weighted, employee drivetime analysis which clearly put three properties in the lead. After 90 days of aggressively negotiating, we chose a sublease at CityWest in Houston due to amenities and the free rent we were able to secure for the client.
Using Vestian’s “conflict-free” platform, Vestian was able to provide an unbiased look at all locations. We were then able to leverage the three properties against each other to maximize the economics for the client. Vestian’s work resulted in total savings of $637,500 for the client.
- Overall value added $637,500
- Reduced initial proposed rental rate by $5.00 per SF – resulting in savings of $125,000
- Negotiated Tenant Improvement Allowance for rebranding purposes of $10 per SF – resulting in savings of $250,000
- Negotiated 6-Month Rent Abatement – resulting in savings of $262,500.00
- New full floor, Class-A space secured
- 7-year transaction accomplished