Soarus engaged Colliers International to evaluate the viability of an early lease restructure, renewal and expansion, or relocation to an alternative facility in suburban Chicago. With a highly specialized research and development laboratory component to its space, the number of facilities that could accommodate Soarus’ needs was limited and the cost of relocating laboratory equipment was expensive. Soarus’ landlord was aware of the limited market alternatives and the substantial cost of relocation. Additionally, Soarus needed to expand by 6,000 to 8,000 SF, however, the rest of property was leased to another tenant, Tegrant, for five more years.
Although limited relocation options were available in the marketplace, the Colliers team identified and negotiated two alternatives within proximity to Soarus’ current location that would accommodate its growing business and real estate needs. In doing so, Colliers was able to demonstrate to Soarus’ current landlord that market alternatives existed and that they needed to work with Colliers and Soarus to find a way to make additional space available in the building or Soarus would be lost as a tenant. Soarus, Colliers, and the building owner devised a strategy to approach Tegrant, the tenant occupying the remainder of the building, to terminate their lease for a portion of their premises to allow Soarus to expand.
After nine months of proposals and negotiations, the Colliers team assisted Soarus with a 10-year lease expansion and renewal, securing 7,141 SF of expansion space previously occupied by Tegrant. Terms included a rental rate reduction and a tenant improvement and free rent allowance that totaled over $350,000 covering all costs associated with the expansion, reconfiguration and construction of the new space. Additionally, Soarus secured future expansion rights, rights to renew and sublease the space or terminate their lease after seven years. Given the substantial amount of concessions and favorable lease terms and conditions the Colliers team negotiated, the decision to expand and extend the lease became the obvious choice.