Local management of Parker-Hannifin Corporation, a New York Stock Exchange company, was going to renew their lease on the office space they were currently occupying. I suggested that a review of available space in other buildings could possibly give them another alternative or put them in a stronger negotiating position with their current landlord. They were satisfied and didn’t want to move because they were in a convenient location for their employees and clients. However, they consented to allow me to review their lease.
I discovered that since they were located on a site with a large regional shopping center, they were being charged for certain common area maintenance costs associated with the shopping center and the related commercial development. In addition, their real estate taxes were exceptionally high because of the higher property valuation due to this commercial location. As a result, I convinced management to look for other office space in the immediate vicinity.
After inspecting their current space plan and layout and comparing it to other buildings, it became apparent that their existing space was inefficient and lacked several amenities and features that would ultimately prove to be very important in their daily operations. I found them more suitable space.
I coordinated their relocation which resulted in accomplishing several of their objectives: more efficient, functional space; enhanced internal communications; more pleasant working environment; future internal expansion; increased flexibility; better corporate image and identity; easier accessibility and options for expansion and lease renewals. This proved to be most valuable since they exercised their expansion option within 60 days of occupying the new space.
In addition to the above benefits, the lease I negotiated on their behalf saved them several hundred thousand dollars in rent, real estate taxes and operating expenses.