Situation:

Our client purchased a company doubling its office size (from 300 to nearly 600 locations).

Approach

We completed a Strategic Facility Plan that outlined operational inefficiencies of the locations and reviewed the processes in terms of transaction management, facility performance and project management. The results of this analysis showed us that 83 locations were "overlap" offices and planned for disposition (24 owned and 59 leased) while 25 offered consolidation opportunities.

Solution

Within 18 months of the close of the purchase, 24 buildings were sold, returning nearly $10 million in profit over Purchase GAAP Book Values. In that same period of time, the excess, leased locations were either subleased or bought-out, recovering an average of 60% of the Remaining Obligation from Date Vacated. All of the consolidations resulted in leases with one exception where the lease-versus-own analysis showed that ownership would be less costly. All of the consolidations improved the quality of facility, reduced square footage occupied by an average of 40%, and reduced occupancy costs (rent, operating expenses and taxes) by another 20%. As a result of all these activities and further attrition, the combined portfolio went from 595 facilities totaling 4 million square feet to 408 locations totaling 3 million square feet and reduced occupancy expenses by 28%.

Case Studies : 1 . 2 . 3 . 4 . 5 . 6 . 7 .