Fit Story
Manufacturing an Exceptional Fit Despite Market Scarcity
Client Profile
- Family-run, technologically innovative manufacturing company founded in 1899
- Reputation for outstanding customer service in the manufacturing space
- Committed to maintaining operational continuity and excellence
REAL ESTATE FIT GOALS
- Remain in the current space to maintain operational continuity
- Secure favorable lease terms and concessions in a landlord-favored market
- Avoid disruption to business operations and customer service
The Challenge
With the tight vacancy rate in the I-80 corridor, Stromberg had limited negotiating power. Alternative warehouse solutions were scarce, and the landlord held significant leverage due to the lack of available opportunities elsewhere. Stromberg faced the challenge of renewing their lease in a market that favored the landlord.
The Solution
Bespoke took a proactive approach, engaging with Stromberg 10 months before their lease expiration. They extensively researched comparable properties and rental rates in the I-80 and I-55 markets. This market analysis provided Stromberg with valuable insights, helping them understand that the landlord’s proposed rental increase was in line with market expectations.
Despite the challenging circumstances, Bespoke leveraged their expertise to negotiate favorable terms for Stromberg. They successfully secured a below-market rental rate, annual escalations in line with the market, a favorable amount of rental abatement, and a tenant improvement allowance. Bespoke’s strong negotiation skills and market knowledge enabled them to create significant value for the client.
The Outcome
By engaging Bespoke well in advance, Stromberg had ample time to make an informed decision. The negotiation process lasted approximately 3.5 months, resulting in substantial cost savings and concessions for the client. Stromberg was able to continue their operations seamlessly, benefiting from the favorable terms negotiated by Bespoke.
“I had used real-estate brokers in the past to negotiate new purchases/leases, but I didn’t see the value in using one for renegotiating an existing lease. Bespoke promised us that they could bring us value, so i gave them the opportunity to prove themselves.”