Fast-growing financial institution
Making a consolidation happen by striking a lower rent ahead of the market
Gavin Mercer, Managing Director at Thanos Realty|11 May 2022|Workplace
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Size
Above 15,000 sq ft
Precinct
Raffles Place/Marina Bay
Services
Secure Space
In order to meet the Tenant’s budget, we deployed the strategy to identify a Landlord who would lower rent expectations ahead of slowing down market. In return, secured occupancy would be a guarantee.
A consolidation of various entities and locations was preferred by the Tenant. However, a target cost needed to be achieved to make such a consolidation viable. To that end, we identified choice buildings with potential vacancies, and ones that were potentially more negotiable when it came to rent pricing.
We also leveraged the Tenant’s premium brand value they would bring to any building they occupied, while focusing on having the Landlord understand the viable costs involved for the Tenant.
Concurrently, we worked with the Landlord to lower their rent expectations using data supporting an imminent office market slow down.
To close the deal, we successfully negotiated a final reduction in rent by 10%, leading the creation of a consolidation that would make a viable business case for the Tenant.
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