Challenge
Dealer Tire, a Cleveland-based automotive tire retailer with a nationwide presence, first engaged Allegro to evaluate their existing real estate footprint in the Miami/Ft. Lauderdale, FL area. Their lease was set to expire at the end of 2016, and since they knew additional space would soon be necessary to accommodate their projected growth, the time was right to consider all available options.
Solution
After performing a market evaluation, Allegro determined that expansion in Dealer Tire’s existing building was not a viable option because surrounding space was restricted by other tenants. The square footage was simply unavailable due to the other leases involved, and the landlord was, at that time, unable to make adjustments. Allegro was left with two choices: propose a solution that involved a new location, or think outside the box to problem-solve in the existing space. Allegro went to market for Dealer Tire in order to gain leverage and provide options for both possibilities.
Fortunately, when faced with the possibility of losing a good tenant, the current landlord worked with Allegro to find a solution. The neighboring tenant was moved to a different space, opening up necessary square footage for Dealer Tire’s expansion.
Working within a tight time frame, Allegro negotiated a 5-year lease for Dealer Tire at a fair rate. Additionally, capitalizing on their strong position, they negotiated numerous tenant improvements for Dealer Tire. Allegro helped to coordinate the management of the build-out of the new space to ensure it was completed on time.
