| Operation Fort: Netsource | ||
| Background: | ||
| The business partners of Netsource (a print management company) formed G & G Property Development, LLC (G & G) for real estate investment purposes. G & G constructed a multi-tenant office/showroom building, leased a portion of the building to Netsource, and signed long term leases with two tenants for the remaining spaces in the building. | ||
| Challenge: | ||
| Netsource was in a position that required them to relocate, which meant G & G Property Development, LLC (G & G) would need to find a new tenant. With a goal of limiting the partners rental exposure Netsource would continue operating out of its current space, and would not sign a lease for new space until a tenant was secured for G & G. Fort Inc. was provided the challenge of procuring a new tenant for G & G, identifying a transition space for Netsource, and ensuring the timelines of each transaction limited the partnerships rental exposure. | ||
| Strategy: | ||
| 1. | Identify industry segments and target prospects best fitting G & G space. | |
| 2. | Begin negotiations with most credible prospects. | |
| 3. | Identify available properties fitting Netsource’s business needs and required occupancy date. | |
| 4. | Outline transition timeline including the following: | |
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New tenant’s target occupancy date for G & G space. | |
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Required tenant improvements to G & G space. | |
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Required tenant improvements for Netsource’s new space. | |
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Time necessary to move Netsource’s business to new building. | |
| 5. | Negotiate and execute both leases with commencement dates that coincide with the timeline necessary for property improvements and business transition period. | ||
| Results: | |
| Fort Inc. identified a worldwide technical service firm who would be a great fit for the G & G building. The prospects requested improvements and desired occupancy date required fast action. With a small window of opportunity Fort Inc. identified a transition property fitting Netsource’s specific business needs. Fort Inc. negotiated a free rent period with overlapping occupancy dates that provided time for the property improvements and Netsource’s business move. The multifaceted transaction resulted in a 100% occupied building for G & G with a new long term tenant while successfully eliminating Netsource’s obligation to pay rent on two properties. | ||
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| Contact Fort Inc. for a no obligation consultation to learn how we can help you achieve your commercial real estate goals more efficiently. | ||