Case Study: Navigating Lease Expiry and Relocation Challenges
Greenbox Recytech Pty Ltd: navigating lease expiry and business relocation to new premises
Case Study No: 7
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.
In the face of an imminent lease expiry for their crucial Auckland distribution center and no options for extension, CEO Daniel Pritchard sought a solution. With the expertise of Marcus and Proactive Property Group, a comprehensive strategy was devised to secure and lease new premises promptly while managing the imminent lease expiry.
This case study highlights the intricate steps taken to overcome the lease expiry challenges, especially during the complex landscape of the COVID-19 pandemic.
Challenges Amidst COVID-19
The year 2020 presented unparalleled challenges, with COVID-19 reshaping the business landscape. Securing new premises amid restrictions and a meager 3% vacancy rate for industrial property was no easy feat. Despite these obstacles, the Proactive Property Group, led by Marcus, embarked on a mission to secure a suitable solution.
Strategising and Planning
Recognising the significance of meticulous planning, Marcus engaged the Greenbox team at the onset to devise a comprehensive strategy.
A meticulous premises brief was developed to guide the premise selection process. Marcus identified and evaluated 19 potential premises, narrowing them down to three viable options for the client’s consideration.
This step ensured that only the most fitting prospects were pursued.
Skillful Negotiations
Upon receiving approval to proceed on the shortlisted premises, Marcus utilised his refined negotiation skills to secure the desired premises and finalise the lease.
Remarkably, this was achieved within an impressive eight-week period, even while navigating the uncertainties brought by the pandemic.
The negotiated commercial terms not only secured the premises but also encompassed favorable provisions such as a competitive rental rate, a substantial rent-free period, landlord office fit-out, and flexible lease terms.
Seamless Transition Planning
With the new premises secured, Marcus collaborated with the Greenbox team to orchestrate a seamless transition plan.
A comprehensive timeline was devised for various stages, including the fitout of the new premises, physical relocation, defit of the existing premises, reinstatement, and handover.
To mitigate timing risks, Marcus negotiated for racking installation while the building consent process was underway, effectively compressing critical path timelines.
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 astute negotiation skills applied by Marcus ensured not only a timely transition but also:
- a very competitive rental rate
- a substantial rent-free period
- a comprehensive landlord office fitout, and
- flexible lease terms.
Through strategic planning, meticulous premises evaluation, skillful negotiations, and seamless execution, Marcus and Proactive Property Group exemplify how businesses can successfully navigate the complexities of lease expiry and relocation, while remaining focused on running their business.
Client Testimonial
“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.”
Daniel Pritchard
Chief Executive Officer
Greenbox Group Pty Limited
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