Situation:

Our client was in bankruptcy and needed to reduce expenses in order to help its emergence from bankruptcy. ProTen was asked to consolidate the most profitable portion (2 locations) of the business into less space in one location, with no out-of-pocket expenditure to the client.

Approach

ProTen recommended subleasing 85,000 RSF and consolidating into 55,000 RSF with an increase in the size of that building by only 23,000 RSF.

Solution

ProTen, in a tenant's market, disposed of the 85,000 RSF to a financially strong subtenant and achieved a 75% recovery with just two years left on the lease. ProTen then found a sublease in the existing building in the remaining location and was able to secure an extension directly with a very concerned landlord (concerned because of the bankruptcy). The resulting transaction improved operational efficiency, dropped 61,000 RSF of space, and reduced our client's annual expenses by 35% including the loss on the sublease.

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