Managing Multiple, Simultaneous Negotiations
SITUATION – AN OUTGROWN OFFICE SPACE
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, and needed to further expand in order to accommodate its business needs.
- Despite being able to accommodate Dufry’s expansion requirement, the building had become inefficient, and expanding further within the building was not an ideal long-term solution.
STRATEGY – LEVERAGE THE MARKET
Recognizing the need for immediate rectification and planning for the future, the Blanca team conducted a full market assessment to identify how Dufry might satisfy its expansion goals on both a short- and long-term basis. Seeking the highest possible value for the tenant, Blanca engaged the current landlord, Prologis, on how Dufry could potentially expand in its current building, and also developed an RFP for other potential landlords to provide Dufry several viable solutions for its expansion.
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 to-be-built property also owned by Prologis.
- Dufry is expected to take occupancy of the new building in the 1st quarter of 2019. The new building is being designed to accommodate Dufry’s annual expansion requirements for the next 10 years.