CASE STUDY: LANDLORD REPRESENTATION
200,000+ SFDistribution Space
1st Spec Building since 2007Scannell
Properties
Secured Pre-LeaseMitigated risk for client
“Pre-leasingafourthofthefirstspeculativebuildingbuiltinthe
SoutheastmarketinalmostsevenyearswasahugewinforthebuildingandCornerstoneBusinessParkasa
whole.WithTerry’sassistance,wearehopingtobreakgroundonanother
industrialspecbuildinginearly2016.”- TimElam,Scannell Properties
OUR JOBAslandlordrepforScannell,wewereresponsibleforleasingthebuilding…quickly.
CHALLENGECompetition. Thispropertywasthefirstspecbuildingconstructedsince2007intheClevelandarea.Sothefeaturesofthismodern,highbaydistributionspacewith32’clear,ESFR,werefirstclass.Buttherewereotherpropertiesavailablewith18-20’clearandESFRthatofferedlowerlease rates.
SOLUTIONFoundapre-lease.Wemitigatedtheriskfortheclientontheirspecbuildingbynegotiatingapre-leaseof55,000SFtoTWW-Bridgestone.Bridgestonevaluedthemodernfeaturesandweworkedwiththemtomaximizetheirinterestinthespace.Infact,understandingtheneedsofthetenantinadvanceempoweredScannell toconstructthepropertytotheirspecifications.
RESULTSuccess.TerrynegotiatedwiththecityofTwinsburgtoagreeonafive-year,50%realestatetaxincentiveforthebuilding,whichassistedinlandingthedealinthethirdbuildingbuiltatCornerstoneBusinessPark.TWWoccupiedtheirnewspaceinSeptember2015.
“Risk-takingispartoftheequationintherealestategame.Andweloverisktakers.Butit’simportanttomitigateriskwithsmartdecision-making.Inthiscase,wereducedtheriskforScannell ononeofthefirstspecpropertybuiltsince2007byfindingandsecuringapre-leasefor55,000SF.Oncetheyhadthat,theycouldsleepbetteratnight,knowingthatbeforethebuildingevenopens,theyarealreadyheadedintherightdirection.”- TerryCoyne
TerryCoyne(SIOR,CCIM)isafull-servicecommercialrealestatebrokerinCleveland.AspartofNewmarkKnightFrank,TerryhasprovidedrealestatesolutionsforNortheastOhiosince1995.He’sconsistentlyatopbrokernationwide.ContactTerryat:[email protected]
