Paragon Micro (Paragon) is a fast growing, leading provider of top, name brand IT computing products and software, as well as leading-edge IT services. Paragon helps companies around the world enable, manage and secure their IT environment. To take advantage of soft market conditions and in an effort to reduce costs, Paragon retained Bespoke two years before its lease expired to complete a comprehensive review of its real estate options.
Paragon occupied 6,000 SF, and due to accelerated growth, they required approximately double the space. To accommodate their expansion requirement, Bespoke identified several buildings as prospects for purchase in a targeted demographic area. In addition, Bespoke conducted a search of potential relocation leasing options. With these proposals, Bespoke approached Paragon’s property management to explore potential expansion opportunities. Retention of this tenant (who had a superior credit rating) was critical for the building owner, who countered with a highly attractive lease restructure and expansion package, far exceeding any other option.
The long-term, early lease renegotiation secured a competitive, below market rental rate. In addition, a fixed expansion option was a key benefit for the growth model of Paragon. Bespoke’s negotiations led to a 30% cost reduction, a construction allowance, and virtually unused furniture at no cost. Bespoke’s custom solution eliminated the costs associated with relocation and allowed Paragon to remain in a well-located, Class A building at a markedly reduced cost.