A Cleveland-based law firm needed to relocate from a 17,000 square-foot space in an older downtown building to a 25,000 to 30,000 square-foot space in a newer downtown building. The law firm was growing and needed more space to accommodate its expansion. The landlord of its existing building was also exploring the early termination of the lease in order to recapture the space.
To accommodate their growth, better serve their clients, and provide their team with an exceptional downtown office space, the firm reached out to Allegro Real Estate Brokers & Advisors for support.
Conducting Market Research and Screening Amid Challenges
Before the law firm could finalize an agreement to leave their existing space, it needed to solidify its new location. After executing an architect selection process, determining the programming, and understanding the financial parameters, Allegro researched and screened the market for appropriate real estate.
While analyzing and evaluating potential properties, Allegro also overcame the following challenges:
- An uncertain timeframe due to an unconfirmed lease termination.
- Retaining similar occupancy costs, despite requiring more space.
- Limiting the out-of-pocket costs for build-out, furniture, fixtures, and equipment.
- Replacing a significant amount of secured parking.
Despite these challenges, Allegro identified several potential properties for the law firm.
Selecting and Negotiating the Optimal Property
Overall, the CRE selection process was a complicated one.
The Allegro team vetted all available options, including an off-market opportunity to sublease space from another law firm that was looking to downsize, the former space of a law firm that relocated, and several other possible options that required significant construction to meet the space needs. Allegro conducted comprehensive negotiations with a number of those options.
For one option, Allegro had a fully negotiated term sheet, only to find out that the landlord did not have the ability to perform due to undisclosed issues it had with its lender.
Successfully Navigating a Complex Market for an Optimal Office Space
Ultimately, Allegro was successful in negotiating a complete turnkey delivery of a 27,000 square-foot office space in the former executive office floors of a Fortune 500 corporation, complete with lakefront views and its own internal elevator.
The new landlord agreed to handle the buildout per the firm’s building specifications and requirements, expediting the buildout process in just three months. The end result included:
- 30+ private, exterior office spaces.
- Five conference rooms.
- A new lobby to connect the two top floors, which had separate elevator service.
- Significant file storage space.
- A spacious reception area.
With Allegro’s expertise of market factors and extensive research, the team ensured this client had a brand new, fully built-out, state-of-the-art space that was within budget, ultimately allowing the law firm to provide the highest level of service to its clients for many years to come.
Do any aspects of this situation sound like something you’re facing? We can help. Contact us to discuss your real estate needs today.