Cushman & Wakefield was engaged to guide the law firm of Lindquist & Vennum in its search for optimal, right-sized office space. The firm wanted to reduce overall square footage while creating a more collaborative workplace environment, including open individual office space and an expansion of shared community space.
- Commence the assignment with a project kick-off informing the real estate committee of national law firm space utilization trends, leading to a thoughtful direction for the project. This session was complemented by an all-firm presentation led by Cushman & Wakefield’s Legal Sector Advisory Group.
- Conduct a market search and evaluate 24 properties (11 existing and 13 development/ redevelopment). We toured 13 of these properties.
- Issue a request for proposal to 9 properties and complete a fit plan for 7 options, along with construction pricing.
- Narrow the search to three preferred choices, including the client’s existing building.
- Utilize new workplace strategies and ergonomic designs to improve wellness and overall employee satisfaction.
- A long-term lease amendment/extension was completed with the client’s existing landlord.
- The firm’s leased premises were reduced from approximately 118,000 sf to 81,041 sf.
- Through negotiations, we achieved a rental rate reduction of $1.25 per sf off the initial proposal, for a total value of $1,520,000 over the term.
- The tenant improvement allowance was increased by $810,000 and we negotiated additional gross free rent, providing added value of $1,280,000.
- Factoring in the financing cost for completely refurnishing the space, Lindquist & Vennum achieved an overall cost reduction of nearly 10%.
- The resulting space increased access to daylight and improved collaborative spaces, including updates to furniture and new technology.
- The project management team achieved 26% in budget savings over the course of the project, from initial budgeting to the final cost.