Dusseldorf, Germany
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International Project Summary Dusseldorf, Germany |
The company needed to reduce its real estate occupancy costs for a leased 54,000 sq. ft. regional sales and service office which was partially sublet. Project resulted in lease surrender with a cash payment to the company, and its relocation into new 15,000 sq. ft. premises. Annual occupancy costs were reduced by 52% from $815,000 to $390,000.
Incremental subleasing was attractive to local management because it minimized disruption. However, poor utilization and high operating costs limited potential savings. The brokers were directed to offer the entire premises: they found an occupier to take the facility "as is," excepting minor clean-up. This tenant made a $400,000 cash payment for purchase of company property and in consideration of favorable financial terms granted by the landlord in lieu of making a capital contribution or rent concession. Management agreed to compress its space program into the ground floor of a nearby building.
