A leading provider of personal and commercial insurance was going through a workplace transformation strategy that involved a rebranding and a massive headquarters redesign and restructure. The client was modernizing the way they utilized their space, taking it from traditional and static to modern and flexible. The client realized it would need a swing space — temporary offices — to house some of the employees during construction.
After working through multiple exercises, it was determined that proximity to the headquarters was the most important characteristic in the swing space. After exhausting traditional office options in the area, Allegro began to explore alternative and unorthodox real estate possibilities, including a local outlet mall with available space.
Originally, the client sought 20,000 sq. ft. but after further evaluation, the need grew to 40,000 sq. ft. that would be split between a swing space and functional and flexible offices for an IT department. The outlet mall did not have 40,000 sq. ft. of continuous space available, but could offer two 20,000 sq. ft. spaces. In order for those two spaces to be adjoining, a large store in the outlet mall would have to relocate. Allegro worked to motivate the landlord to accommodate the client and push the relocation, even though the client’s need for the space was temporary. The deal was contingent upon this relocation.
Ultimately, the relocation was agreed upon and the client leased 44,000 sq. ft. for three years. The outlet mall had never before housed a non-retail tenant, which presented a few unique challenges. Due to the nature of the client’s work, they have intense technological needs the landlord could not offer. The client wired their own fiber optic cable line between their headquarters and the outlet mall, a distance of approximately five miles, in order to receive a high-speed data feed appropriate for their needs. Additionally, the client converted spaces historically used only for retail into individual offices, which required careful reconfiguration and renovations.
The 44,000 sq. ft. space can house 300 employees who will benefit from close proximity and easy accessibility to the headquarters, a discount at the outlet mall’s food court, and ample parking. Currently, the entire space is being used for the IT department which has opened up enough excess office space at the headquarters for most employees to remain in place during renovations. However, as construction continues and the client’s needs evolve, the space can be modified to accommodate those needs for the duration of the lease.