Schwan’s Food Service – Lease Renewal

Schwan’s Food Service – 18,124 sf

The Situation:

  • Schwan’s Food Service was faced with a lease renewal regarding their office warehouse facility.
  • The tenants ideal situation was to renew their existing lease.
  • Because of the specialty of their operation, the existing warehouse space had very expensive tenant improvements making it difficult for them to relocate.
  • The landlord was aware that it would be difficult for the tenant to relocate, and the tenant was paying an over market lease rate.

The Approach:

  • We were hired to find alternative office/warehouse facilities that would provide a high tenant improvement allowance and lower economic value.
  • We knew of a alternative facility that had an ideal warehouse layout, was more economical, and most of the specialized improvements were in place.

The Solution:

  • We leveraged both the vacant facility and the existing facility creating competition against one another for our clients business.
  • Provided in depth lease analyses of both scenarios and reviewed all architectural drawings of the competitive property.

The Result:

  • Because of our strong negotiations we were able to renew our clients lease with substantial savings.
  • Our client signed a long-term lease which incorporated a lease termination clause in the middle of the lease term. We were also able to negotiate free rent, a tenant improvement package, and a substantial reduction in the lease rate.

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