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Case Study | Swan Daojia (Formerly 58 Daojia) office relocation

Case Study | Swan Daojia (Formerly 58 Daojia) office relocation

Challenges

  • Complexity of original office building; Non-standard office results in management difficulties
  • Poor internal traffic flow of office building; Two elevators serving 30,000 square meters of space 
  • Lease has not expired but needs to be terminated early
  • Complex leases that require lease restructuring and negotiation
  • Complex decision-making process and difficult project timeline estimation

Solutions

  • Mapping of potential buildings to narrow down options
  • Understanding the mentality of landlords through in-depth surveys
  • When rental conditions are optimal, increase the economics of the contract through additional conditions
  • Collect timely information on active tenants searching for sites larger than 5,000 square meters to control risk
  • Use brand advantages to persuade owners to make maximum financial and non-financial concessions
  • Multi-faceted financial analysis in cost accounting and operating cost, etc. 

Results

  • Lower leasing costs than that of previous non-standard offices for equal space
  • 5-year leases with below-market increase of rent
  • Unexpected renovation period + rent-free period
  • 30 free parking spaces + 50 discounted parking spaces
  • Overtime, air conditioning follows the cooling season mode, saving nearly 10 million in 5 years.

commendatory LETTER

Client Name: Swan Daojia
City: Beijing
Date of Sale: October 2020
Building Name: Beijing Culture Creative Building
Area: 12,000 sq meters
Transaction Type: Early termination; relocation