DATA CENTER ACQUISITION
Data Center,1.25+ MW critical load, Wholesale Lease-Expansion & Early Renewal
The challenge was to significantly reduce the client's cost structure with 2 years remaining on the lease in a landlord's market.
ProTen's strategy was to find new data center sites which required this high-value tenant to attract other data center users and leverage the lower cost of alternate locations to reduce existing costs.
ProTen lowered the cost structure by 25%, received significant Tenant Improvement dollars from owner to upgrade the center, and convinced the owner to complete significant "base building" improvements in addition to the Tenant Improvement dollars.
"When we got ProTen involved, we had already tried to extend this data center lease but got an offer escalating our rates that HQ rejected. After ProTen's negotiations, we not only reduced our rates but were able to make an important expansion of the center at no additional cost." -Client testimonial
Data Center, 35,000 RSF, Expansion & Renewal
This financial services client ran this large data center for its own use and offered co-location services to its many clients as well. A relocation would be costly and disruptive to their third party clients. ProTen was tasked with convincing the existing landlord that the client could and would relocate their center.
ProTen identified spaces within 5 miles that were previous data centers ready for minor retrofit and move-in, with all the necessary infrastructure and redundant power supplies.
We uncovered 3 spaces (2 of which were not on the market) that actually excited the client's IT people and CIO. As a result, we were able to reduce the existing low rent another 15% (15 months prior to expiration), convert the net lease to a fully gross lease and obtain a sizable turnkey allowance for improvements to both the existing and expansion premises.
"ProTen encouraged us to explore the possibility of reducing our already low rent by extending the lease early. We were skeptical because we knew how our rent was below market and we were concerned about possible relocation alternatives for this important data center. ProTen achieved the savings they promised by finding viable market alternatives. We now have extended nine years at an even lower rate." -Client testimonial