CASE STUDY: LANDLORD REPRESENTATION · CASE STUDY: LANDLORD REPRESENTATION 200,000+ SF Distribution...
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CASE STUDY: LANDLORD REPRESENTATION 200,000+ SF Distribution Space 1 st Spec Building since 2007 Scannell Properties Secured Pre-Lease Mitigated risk for client “Pre-leasing a fourth of the first speculative building built in the Southeast market in almost seven years was a huge win for the building and Cornerstone Business Park as a whole. With Terry’s assistance, we are hoping to break ground on another industrial spec building in early 2016.” - Tim Elam, Scannell Properties OUR JOB As landlord rep for Scannell, we were responsible for leasing the building…quickly. CHALLENGE Competition. This property was the first spec building constructed since 2007 in the Cleveland area. So the features of this modern, high bay distribution space with 32’ clear, ESFR, were first class. But there were other properties available with 18-20’ clear and ESFR that offered lower lease rates. SOLUTION Found a pre-lease. We mitigated the risk for the client on their spec building by negotiating a pre-lease of 55,000 SF to TWW-Bridgestone. Bridgestone valued the modern features and we worked with them to maximize their interest in the space. In fact, understanding the needs of the tenant in advance empowered Scannell to construct the property to their specifications. RESULT Success. Terry negotiated with the city of Twinsburg to agree on a five-year, 50% real estate tax incentive for the building, which assisted in landing the deal in the third building built at Cornerstone Business Park. TWW occupied their new space in September 2015. “Risk-taking is part of the equation in the real estate game. And we love risk takers. But it’s important to mitigate risk with smart decision-making. In this case, we reduced the risk for Scannell on one of the first spec property built since 2007 by finding and securing a pre-lease for 55,000 SF. Once they had that, they could sleep better at night, knowing that before the building even opens, they are already headed in the right direction.” - Terry Coyne Terry Coyne (SIOR, CCIM) is a full-service commercial real estate broker in Cleveland. As part of Newmark Knight Frank, Terry has provided real estate solutions for Northeast Ohio since 1995. He’s consistently a top broker nationwide. Contact Terry at: [email protected]
Transcript of CASE STUDY: LANDLORD REPRESENTATION · CASE STUDY: LANDLORD REPRESENTATION 200,000+ SF Distribution...
CASE STUDY: LANDLORD REPRESENTATION
200,000+ SFDistribution Space
1st Spec Building since 2007Scannell
Properties
Secured Pre-LeaseMitigated risk for client
“Pre-leasingafourthofthefirstspeculativebuildingbuiltinthe
SoutheastmarketinalmostsevenyearswasahugewinforthebuildingandCornerstoneBusinessParkasa
whole.WithTerry’sassistance,wearehopingtobreakgroundonanother
industrialspecbuildinginearly2016.”- TimElam,Scannell Properties
OUR JOBAslandlordrepforScannell,wewereresponsibleforleasingthebuilding…quickly.
CHALLENGECompetition. Thispropertywasthefirstspecbuildingconstructedsince2007intheClevelandarea.Sothefeaturesofthismodern,highbaydistributionspacewith32’clear,ESFR,werefirstclass.Buttherewereotherpropertiesavailablewith18-20’clearandESFRthatofferedlowerlease rates.
SOLUTIONFoundapre-lease.Wemitigatedtheriskfortheclientontheirspecbuildingbynegotiatingapre-leaseof55,000SFtoTWW-Bridgestone.Bridgestonevaluedthemodernfeaturesandweworkedwiththemtomaximizetheirinterestinthespace.Infact,understandingtheneedsofthetenantinadvanceempoweredScannell toconstructthepropertytotheirspecifications.
RESULTSuccess.TerrynegotiatedwiththecityofTwinsburgtoagreeonafive-year,50%realestatetaxincentiveforthebuilding,whichassistedinlandingthedealinthethirdbuildingbuiltatCornerstoneBusinessPark.TWWoccupiedtheirnewspaceinSeptember2015.
“Risk-takingispartoftheequationintherealestategame.Andweloverisktakers.Butit’simportanttomitigateriskwithsmartdecision-making.Inthiscase,wereducedtheriskforScannell ononeofthefirstspecpropertybuiltsince2007byfindingandsecuringapre-leasefor55,000SF.Oncetheyhadthat,theycouldsleepbetteratnight,knowingthatbeforethebuildingevenopens,theyarealreadyheadedintherightdirection.”- TerryCoyne
TerryCoyne(SIOR,CCIM)isafull-servicecommercialrealestatebrokerinCleveland.AspartofNewmarkKnightFrank,TerryhasprovidedrealestatesolutionsforNortheastOhiosince1995.He’sconsistentlyatopbrokernationwide.ContactTerryat:[email protected]
