Case Study: Lease expiry and Relocation for Greenbox Recytech Pty Ltd
Finding Premises & Negotiating Lease
Lease Expiry and Relocation
A lease expiry within 3 months + navigating COVID waters = up against a wall with nowhere to go
The ever-changing tech scene comes with some big unknowns and risks to privacy for local organisations. With close to 20 years in the game, Greenbox undertakes the full responsibility of managing IT assets from sourcing and installation, through to data sanitisation and disposal. As an Australasian computer components recycler, they have distribution centres in Brisbane, Sydney, Melbourne, Canberra and Auckland.
Facing a lease expiry on their key Auckland distribution centre with no option for extension or renewal, and having exhausted all channels with real estate agents, CEO Daniel Pritchard, turned to Marcus and Proactive Property Group to urgently source new Auckland premises and to negotiate a lease.
In a 2020 world summed up by one word – COVID-19 – the task posed additional hurdles due to restrictions and a significant shortage of available premises with the vacancy rate for industrial property being less than 3% at the time.
Marcus swiftly engaged the Greenbox team to be a part of the planning phase as he knew it was a vital step in securing the right premises for their needs in time for their lease expiry.
Together, a premises brief was formed which would lead them into the sourcing stage. From here, Marcus went to the market and was able to identify 19 potential premises which he qualified and then shortlisted down to 3 suitable options for the client to approve and signoff on.
Once Marcus was given the go ahead on the 3 shortlisted premises, Marcus drew on his refined negotiating skills to secure premises and finalise the lease on excellent commercial terms – all within 8 weeks whilst navigating COVID waters.
Once the premises was secured, Marcus worked with the Greenbox team to map out the timeline for the new premises fitout, the physical relocation, the subsequent defit of the existing premises, reinstatement and handover.
Given the compressed timelines, Marcus mitigated the timing risks by negotiating and enabling racking to be installed while the building consent was lodged and processed, thereby reducing the critical path timeline.
The Client Outcome:
Despite being in extraordinary circumstances, Marcus calmly adapted and went to work, and Greenbox moved into its new premises 94 days after engaging Proactive Property Group. The commercial terms negotiated by Marcus also meant that:
- A substantial rent-free period was obtained
- A substantial landlord office fit-out was undertaken
- Flexible lease terms were obtained
“Marcus is a highly professional property specialist. He is easy to work with, outcome focussed, and pragmatic.
We engaged Marcus from Proactive Property Group to urgently source our Auckland distribution centre. Working in a challenging environment that included navigating COVID19 restrictions and a significant shortage of available properties Marcus secured premises and negotiated a lease on excellent commercial terms within 8 weeks.
I was impressed with Marcus’s ability not only to deliver on our core requirements, but also to use his experience in helping us navigate a number of internal discussions. With his help we arrived at the best possible immediate solution, and developed an objective view on our how to address our future requirements.
I would recommend Marcus without reservation.”
Chief Executive Officer
Greenbox Group Pty Limited
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