Case Study – Society Of Diagnostic Medical Sonography

2745 Dallas Parkway
Plano, Texas
11,018 sf

Spartan Partners
Greg Whittington, CCIM
President & Founding Partner

This client’s existing lease had nineteen (19) months remaining. Due to budgetary pressures and long term strategy; the company had been diligently targeting areas to lower costs company wide. They wanted to extend their lease for several strategic reasons, but one of the main drivers was possible economic savings. Others related to client contracts and future growth that were on the forefront in coming years.

At the time the real estate market was red hot, vacancy was way down and rents had risen for 9 straight quarters. The clients building had increased occupancy by 22% and rates had risen over 18% in as many months. It was the definition of a “Landlord’s Market.” The client was under the impression that there wasn’t much hope for any actionable event to occur on their lease based on the amount of term remaining. In addition, their current rent was below current market rates and the building was 92% leased.

After a thorough needs analysis the goals and objectives were clear. Spartan Partners immediately focused all attention on leveraging our client position with the landlord.

 

• Dialogue immediately began with the landlord and a RFP was sent outlining the client’s objectives.
• SDMS was able to extend their lease by three years seventeen (17) months early.
• Spartan negotiated up front savings (immediate free rent and rent reduction). (20% below current face rates).
• Spartan negotiated a refurbishment allowance of $11,000 to be used by SDMS within the first twelve (12) months of the new term.
• The lease restructure allowed SDMS to lower existing rental costs while also achieving the strategic initiatives that the company had set earlier that year.
• Spartan’s successful “Blend & Extend” and aggressive negotiations saved SDMS over $100,000 over their new term.