Managing Multiple, Simultaneous Negotiations
SITUATION – AN INEFFICIENT INDUSTRIAL AND OFFICE REGIONAL HQ
After experiencing significant year-to-year organic growth, Dufry faced the following challenges with its current space:
- Dufry had outgrown the space it had occupied for the past 10 years, despite having expanded into adjacent office space.
- Current building could accommodate Dufry’s expansion requirement but expanding further within the building was not an ideal long-term solution.
STRATEGY – LEVERAGE THE MARKET
The Blanca Team created competition for Dufry’s tenancy by engaging in an RFP Process with other landlords after having conducted a full market assessment to identify options that could satisfy Dufry’s expansion goals on both a short- and long-term basis. Seeking the highest possible value for the tenant, the Blanca Team also engaged the current landlord, Prologis, to explore expansion in its current building. Simultaneous options were negotiated.
RESULTS – SHORT-TERM REMEDIATION WITH A LONG-TERM OUTLOOK
The Blanca team was able to successfully negotiate a short-term expansion in the current facility, at Dufry’s existing rental rate (no increases) and simultaneously a new long-term lease in a built-to-suit property also owned by Prologis.
Dufry’s new building was designed to accommodate Dufry’s expansion requirements for the next 10 years.