industrial advisory services introduction

INDUSTRIALTENANT ADVISORY SERVICES

WHO WE ARE

Newmark Grubb Knight Frank is one of the world’s leading commercial real estate advisory firms. Together with London-based partner Knight Frank and independently-owned offices, NGKF’s 12,000 professionals operate from more than 330 offices in established and emerging property markets on six continents.

With roots dating back to 1929, NGKF’s strong foundation makes it one of the most trusted names in commercial real estate. NGKF’s full-service platform comprises BGC’s real estate services segment, offering commercial real estate tenants, landlords, investors and developers a wide range of services including leasing; capital markets services, including investment sales, debt placement, appraisal, and valuation services; commercial mortgage brokerage services; as well as corporate advisory services, consulting, project and development management, and property and corporate facilities management services. For further information, visit www.ngkf.com.

Our collective team is comprised of industry specialists who exclusively represent industrial users throughout Southern California. With over 95 years of combined subject matter experience, we offer a very disciplined and focused advisory service whereby we become an extension of our client’s operational team and assist in many facets of evaluating operations that extend well beyond any real estate transactions. We DO NOT represent any landlords or developers nor do we seek business from the landlords that you ultimately negotiate with. This discipline provides a conflict free perspective and allows our clients to truly leverage tenancy without compromise.

NGKF is a part of BGC Partners, Inc., a leading global brokerage company servicing the financial and real estate markets. BGC’s common stock trades on the NASDAQ Global Select Market under the ticker symbol (NASDAQ: BGCP). BGC also has an outstanding bond issuance of Senior Notes due June 15, 2042, which trade on the New York Stock Exchange under the symbol (NYSE: BGCA). BGC Partners is led by Chairman and Chief Executive Officer Howard W. Lutnick. For more information, please visit http://www.bgcpartners.com/.

OUR APPROACH

OUR SERVICES

Very different than that of traditional “brokers”, we are engaged with our clients well in advance of any real estate decisions to analyze operations with specific objectives in mind; reducing costs, increasing operational efficiencies and mitigating facility related risks. We employ our full platform of resources and subject matter experts from the initial phase of the project to ensure a detailed and comprehensive evaluation of your operations and potential requirement have been fully vetted and confirmed. Most “brokers” are transactional focused meaning they are interested in getting a deal done as quickly as possible to move onto the next assignment. Our approach allows our clients to leverage our numerous years of expertise and provide operational recommendations based on best in class operations. In most circumstances, the project requirements that are ultimately developed and selected are very different than that of what the client originally projected.

We provide a robust platform of services that include Transaction Management, Project Management, Supply Chain, Facility Design and Master Planning, Warehouse Consultation, Material Handling Vendors, Economic Incentives, Workplace Strategies and Operating Expense Audit Services. While we understand not every assignment requires all facets of our service lines, it is important for a user to understand our team is well versed and experienced in many disciplines that impact facilities and operations. It is common for us to access the necessary service lines based on the scope and objectives of the client. For example, clients who wish to remain and renew would likely be introduced to the Transaction Team, Project Management and Warehouse Consultants. For other companies evaluating a potential relocation (local, regional or exploring the greater US), we might call upon the entire team depending upon the complexity of the requirement.

In most cases, we are either working with an existing customer, being introduced for the first time or being asked to solve a problem. Regardless of “how” we are introduced to a client, initiating the project remains unchanged. The first step is scheduling a consultative meeting whereby we develop our internal team based on the client’s initial objectives. During the initial meeting, we invest a great deal of time in asking questions, understanding the operations, exploring current or future operational challenges, evaluating current facilities, address capital projects and determining the clients most ambitious operational objectives. Following the initial meeting, we develop a “Project Scope” which incorporates all the information received thus far into a document that serves as the roadmap and is distributed to the Executive Team. We then begin to develop a timeline and budget that incorporates costs associated with the desired “Project Scope”.

Once the requirement and objectives have been fully explored, vetted and confirmed; we develop and tailor a strategy oriented towards developing leverage and driving value through our numerous years of transaction and subject matter experience. We understand that each individual organization has different objectives and therefore, each strategy and ultimate execution is unique. Our discipline of Industrial Representation and keen understanding of leveraging tactics allow our clients to benefit from conflict free negotiations while maintaining a strategy and execution that is oriented toward reducing costs, creating operational efficiencies and mitigating facility related risks. Furthermore, we extensively evaluate all facilities under consideration to ensure they are conducive to support our desired operational use. This includes but is not limited to code compliance, material handling and storage methods, office space, commodity class verification, ADA, building sprinkler systems, deferred maintenance (roof, HVAC, dock equipment, parking lot, mechanical and electrical, etc.), power and ingress/egress. It is common for companies to sign a lease/purchase only to identify and experience a great deal of challenges and issues that could have been surfaced and addressed during the negotiations. The unfortunate reality is that once a lease has been signed or a building closes escrow, the tenant or buyer faces full exposure of these unforeseen deficiencies.

Whether the ultimate desire is to remain/renew in an existing facility, relocate, consolidate, bifurcate or purchase; our process of developing a strategy, leverage and executing a transaction remains consisting thus providing the highest probability of securing a facility at the lowest cost possible while eliminating any future risks.

In most cases, traditional “brokers” are long gone at this point and the client is left to deal with elements of the operations such as construction, material handling installation, facility setup, etc. Given our assembled team and necessary resources were developed and engaged at the initial phase of the project, we remain active with our clients and execute all elements of the transaction based on the initial roadmap. We manage all of the necessary vendors to ensure the project is delivered on time and under budget. Our team is also present when you take occupancy of the space and commonly assist our clients in developing a comprehensive report of any and all post occupancy facility issues that we address directly with the landlord. There should be no financial exposure post lease/purchase execution.

INITIATING A PROJECT

STRATEGY AND EXECUTION

POST LEASE/PURCHASE EXECUTION

OUR PROCESS

WHY ENGAGE

OUR TEAM?We believe our unique discipline of representing industrial tenants, combined level of team expertise, resources we provide, creative thinking and leveraging tactics will provide any industrial tenant with the level of comfort knowing they are well protected, represented and have an advocate on their side. We are not traditional “brokers” who represent a tenant trying to negotiate a deal one day only to call that same landlord the next asking for a listing or future business. We have consistently reduced our clients operating costs by double digits and welcome an opportunity to discuss your goals and objectives.

WES HUNNICUTTSenior Managing Director

O: 949.608.2093M: [email protected] RE License #01346131

MATT MOORESenior Managing Director


KURT GOTTSCHLINGAssociate Director


JEFF MOLITORSenior Managing Director,Program/Project Management

O: 949.608.2025M: [email protected]

ROBERT HESSExecutive Managing Director,Consulting

O: [email protected]

ALAN NAGERExecutive Managing Director, Global Corporate Services

O: [email protected]

Wes Hunnicutthttp://contact.kaywa.com/contact/oHP0R

http://ct.kaywa.me/oHP0R

Download the Kaywa QR Code Reader (App Store &Android Market) and scan your code!

Matt Moorehttp://contact.kaywa.com/contact/SYp2s

http://ct.kaywa.me/SYp2s


Kurt Gottschlinghttp://contact.kaywa.com/contact/zJkt6

http://ct.kaywa.me/zJkt6


TRANSACTION TEAM

PROJECT MANAGEMENT

ECONOMIC INCENTIVES

SUPPLY CHAIN/WAREHOUSE CONSULTING

JC SALES7030 E. Slauson Ave., Commerce

Transaction Type: Lease RenewalSize: 267,000 RSF

CUSTOM GOODS12200 Arrow Rte., Rancho Cucamonga

Transaction Type: RelocationSize: 240,049 RSF

QSC AUDIO1665 & 1675 MacArthur Blvd. / 1600 Sunflower

Costa Mesa


INLAND STAR2132 E. Dominguez St., Carson

Transaction Type: Relocation Size: 255,000 RSF

TEST RITE1900 S. Burgandy Pl., Ontario


INTERNATIONAL LOGISTICS AND DISTRIBUTION

11130 Holder St., Cypress


ANIMAL SUPPLY COMPANY8550 Chetle Ave., Whittier


MANHATTAN BEACHWEAR10700 Valley View St., Cypress


CAMBRO MANUFACTURING21508 Ferrero Pkwy., City of Industry


DSW DISTRIBUTION8858 Rochester Ave., Rancho Cucamonga


DIAMOND SPORTS1880 E. Saint Andrew Pl., Santa Ana

Transaction Type: Relocation Size: 82,000 RSF

LOGOMARK1201 Bell Ave., Tustin


NOBLE IRON8314 Slauson Ave., Pico Rivera


AJ OSTER WEST22833 La Palma Ave., Yorba Linda

Transaction Type: Lease Renewal Size: 50,282 RSF

GP LOGISTICS12900 Simms Ave., Hawthorne


RECENT TRANSACTIONS

SIEMENSNational Account

Multiple Transactions Completed

FENDEROntario, CA

Size: 857,000 RSF

ACT FULFILLMENTMira Loma, CASize: 606,925 RSF

NIKEOntario, CA

Size: 506,000 RSF

ANCHOR BLUECorona, CA - Size: 45,736 RSF

Ontario, CA - Size: 385,000 RSF

MISCO HOME & GARDENCity of Industry, CA

Size: 350,000 RSF

SNAPWAREOntario, CA

Size: 325,000 RSF

UNITED PACIFIC DISTRIBUTORSVernon, CA

Size: 137,708 RSF

TEST RITE INTERNATIONALOntario, CA

Size: 120,600 RSF

BABY PHATPico Rivera, CASize: 156,000 RSF

FOAMEXCorona, CA

Size: 127,571 RSF

WORKFLOW ONEOntario, CA

Size: 110,000 RSF

BIG TRAINLake Forest, CASize: 98,672 RSF

SAGE SOFTWAREIrvine, CA

Size: 96,800 RSF

BAKKAVORCarson, CA

Size: 91,640 RSF

MANHATTAN BEACHWEARCypress, CA

Size: 75,480 RSF

MOON INTERNATIONALCorona, CA

Size: 65,571 RSF

JOHNSON HARDWOODCity of Industry, CA

Size: 64,900 RSF

SOUTHERN CALIFORNIA MATERIAL HANDLINGPico Rivera, CASize: 62,766 RSF

FIDELITONE LOGISTICSNorwalk, CA

Size: 60,000 RSF

INTERNATIONAL LOGISTICS AND DISTRIBUTIONLa Mirada, CASize: 40,000 RSF

L. J. Smith Stair SystemsCorona, CA

Size: 34,100 RSF

PFX PET SUPPLYLa Mirada, CASize: 31,206 RSF

JR MILLER & ASSOCIATESBrea, CA

Size: 30,516 RSF

InDUSTRIAL TENANT REPRESENTATION

TRANSACTION TYPE:Lease RenewalSIZE:267,500 RSFSERVICES PROVIDED:Tenant Representation

PROVEN RESULTS

7030 East Slauson AvenueCommerce, CA

CHALLENGEJC Sales, a leading dollar store merchandiser for 99 Cent Only, Dollar Plus & Dollar Tree, occupies multiple facilities in Southern California totaling over 800,000 square feet. One of the buildings occupied by JC Sales is a 267,500 square-foot warehouse located in Commerce, CA, which serves as the main receiving and distribution facility and supports the company’s overall Southern California operations. The facility provides 24-foot warehouse clearance, 10,000 square feet of office space, 20 dock-high loading positions and a secure drive-around yard.

JC Sales originally occupied a portion of the Commerce facility and quickly grew into the entire building. After years of occupying the facility, JC Sales was experiencing deferred maintenance issues that were causing unexpected operational issues and costs. Newmark Grubb Knight Frank was introduced to JC Sales to initially help evaluate the operations, while analyzing a stay versus relocation scenario. With the lease expiring in 12 months from our initial meeting, our team conducted a full building evaluation and worked with our in-house Project Manager to develop a “building deficiency” list. This list addressed all of JC Sales’ current operational issues, future cost exposures, building deferred maintenance concerns and upgrades that JC Sales ideally would like made should they remain in the facility post lease expiration.

ACTIONOver the course of four months, Newmark Grubb Knight Frank created leverage that pressured the existing landlord to immediately address JC Sales’ tenancy while also exploring alternatives within the market. We negotiated on multiple options, including the existing building, and provided the current landlord with documentation that supported a well above capital allowance and a very aggressive rental package.

RESULTSThe end result was an aggressive economic package that out performed recent transactions within the market. By virtue of our process, JC Sales received an early lease commencement valued at $80,000 with a landlord funded tenant improvement allowance of $342,000, achieved four months of rental abatement equal to $449,000, reduced the net charges by $0.015 valued at $190,000 and the landlord assumed responsibility for any capital repairs/replacements necessary to the building including the $350,000 cost for a new roof. The overall economics and landlord funded capital allowance will allow JC Sales to operate from this location without future cost exposures and below what they had previously been paying.

TRANSACTION TYPE:Lease RestructureSIZE:330,000 RSFSERVICES PROVIDED:Tenant Representation

PROVEN RESULTS

21558 Ferrero ParkwayCity of Industry, CA

CHALLENGECambro Manufacturing, a world-wide manufacturer and distributor of plastic trays to the food and health care industries, occupied a 330,000 square foot, state-of-the-art, distribution facility since 2007. The building, which is owned by a large institutional pension fund, was used by Cambro as their west coast distribution center.

In order to better serve their clientele and maximize efficiency within the building Cambro had begun the installation of a self-funded, four-phase automation project that would cost approximately $7.0 million dollars. At the time our team was hired, Cambro had slightly over two years remaining on their lease obligation and had implemented phase-one of the automation project at a cost of approximately $1.4 million dollars. Maintaining a strict timeline was required in order for Cambro to implement the full automation process.

Cambro was paying above market rents in a building that is one of the most desirable facilities in the east City of Industry submarket. ACTIONOur team evaluated Cambro’s facility and long-term facility objectives. We understood Cambro would be a captive tenant if they invested $7.0 million into a facility that had two years remaining on the lease. Our team requested Cambro halt any further implementation of the automation system to give the impression to the landlord that the facility may no longer be suitable for Cambro.

Our team and Cambro entered the market for additional space to create leverage with the existing landlord. Cambro’s landlord immediately contacted us to discuss the possibility of a lease restructure in order to retain Cambro’s tenancy. RESULTS:Our team was able to negotiate and secure favorable terms in a short period of time that dramatically reduced Cambro’s 20 month remaining obligation. Just as important, the negotiations did not delay the implementation of the automation process. Our team also negotiated a liberal use of the Tenant Improvement Allowance which allowed Cambro to utilize all of the allowance to off-set the cost of the automation project. Cambro extended their lease for 7 years and was able to save $1.4 million dollars over the remaining 20 month lease obligation.

PROVEN RESULTS

CHALLENGEInland Star Distribution Centers is the nation’s largest warehousing company, specializing in storing and distributing chemical and hazardous material products. Inland Star had occupied 180,000 sf located in Rancho Dominguez for over 10 years and was experiencing tremendous growth. The existing facility was a specialized operations facility and included H-2 rooms, cold storage areas and racking throughout the building that was designed to support their clients’ storage needs.

Inland Star was experiencing significant interest from other chemical and hazardous material companies which required Inland Star to expand the existing H-2 rooms to accommodate their growing clientele. They also needed additional space as their food and beverage – along with their consumer packaged goods business – was also expanding. The existing building had limitations due to the physical features of the building which included inadequate sprinklers, ceiling height, dock doors, yard and a lack of rail service. ACTIONWe were engaged by the client over a year before their scheduled lease expiration to analyze the current facility and surface potential options that could accommodate their operational objectives. Given the market had a 3.8% vacancy; we canvassed the market and identified 2-3 potential alternatives and implemented a strategy that leveraged our client’s tenancy. Due to our Project

Management Services, we were able to identify which building had the best infrastructure for our specific use and quantified our entry costs into each of the alternatives. By implementing credible leverage and having a specific cost forecast for build out of each option, we were able to negotiate with the landlords to capitalize costs that would provide the necessary infrastructure to operate a specialized facility that supported Inland Star’s clients. Given the unique nature of storing chemicals and hazardous materials, we worked with the local municipalities and agencies to garner approval before making a final selection.

RESULTOur team was able to secure a 254,411 square foot facility located in Carson. The economics we achieved, due to our leverage creation process, were 20% below that of other comps and alternatives for like kind properties in the area. The terms of the new deal included 7.5 months of rent abatement, $550,000 in landlord funded Tenant Improvements that could be used to construct H-4 rooms, $650,000 for an ESFR sprinkler system upgrade, $200,000 to activate the rail service and the landlord provided a warranty on all building and operating systems. The new facility not only reduced our clients operating costs but also significantly increased capacity in the specialized/H-4 storage areas. Upon completion of the above improvements, this facility will serve as the benchmark for other chemical and hazardous storage companies due to its physical features that were designed to new safety standards.

TRANSACTION TYPE:RelocationSIZE:254,411 RSFSERVICES PROVIDED:Tenant Representation

2132 E. Dominguez StreetCarson, CA

PROVEN RESULTS

TRANSACTION TYPE:ExpansionSIZE:397,000 RSFSERVICES PROVIDED:Tenant Representation

1900 South BurgundyOntario, CA

CHALLENGETest Rite International (Test Rite), an international distributor of household products and third-party logistics provider, occupied a corporate headquarters building for over 17 years. Test Rite, who previously owned the building, had sold the facility over seven years past and leased-back the facility. The building was now owned by a risk-adverse pension fund. Test Rite had secured a new large account that required significant out-of-pocket capital to modify their facility to accommodate their new client’s storage and security requirements.

With over three years remaining on the lease, Test Rite considered themselves a captive tenant. Test Rite’s original objective was to access the market for additional space to accommodate the new client. Test Rite was paying significantly above market rent and was subject to a $2.7 million dollar letter of credit when they signed the original lease. ACTIONOur team invested many hours in assessing the Ontario facility and product flow to identify opportunities to enhance the layout and increase operational efficiencies. We accessed the market for a potential expansion/relocation scenario which gave our team the opportunity to engage Test Rite’s current landlord in the process.

Our team informed the landlord that Test Rite was considering expansion into a portion of a single, large facility, which would allow them to accommodate their immediate expansion needs and consolidate into the remaining portion of the building upon natural lease expiration. RESULTSOver a six month period, our team was able to develop leverage which resulted in the landlord providing concessions to dramatically off-set the capital investment required by Test Rite. In addition, our team was able to negotiate renewal economics that commenced three years prior to the lease expiration as well as the removal of the $2.7 million dollar letter of credit. Test Rite was able to secure savings of over $1.5 million dollars when compared to the economics of their previous lease, which does not include the value of the removal of the letter of credit nor does it include the tenant improvement capital provided by the landlord.

PROVEN RESULTS

CHALLENGEManhattan Beachwear Inc. had been operating out of three facilities for many years. Initially, they were in one building located in Cypress until they acquired another company in Los Angeles which had two additional facilities. Manhattan Beachwear had been using the three facilities for general office functions, design and product development, sewing, finance, customer support, storage of materials and distribution of finished goods.

Due to Manhattan Beachwear’s rapid growth and the recent capital infusion by a Private Equity partner, Manhattan Beachwear needed to evaluate the operations in an effort to either consolidate all or two of the primary buildings. Their objective was to implement an automated warehouse system while significantly improving and enhancing the current traditional office environment.

ACTIONNewmark Grubb Knight Frank’s Industrial Advisory Team was brought in to help Manhattan Beachwear explore a variety of scenarios that could enhance the business functions, create efficiencies and reduce costs associated with operating out of three facilities. The NGKF team, which included Jeff Molitor as Project Manager, worked with Manhattan Beachwear’s third party warehouse consultant to develop the project scope and the execution of a strategy oriented towards a consolidation of the three facilities. The process also involved interviewing and hiring an architect to help assist with quantifying space standards for the

high number of employees and functions of different departments within the business. Since Manhattan Beachwear had acquired a company and had three separate facilities, this process also allowed for the integration of the companies culture and new branding into the new space that better supported the company’s long term vision.

RESULTThe completion of the facility and scenario evaluation/study resulted in Manhattan Beachwear deciding to secure a 75,000sf office building and a separate 190,000 rsf distribution facility. The NGKF team was able to identify and negotiate a high image creative office space in Cypress which was less than a mile from Manhattan Beachwear’s existing Cypress location and only 3 miles from the newly selected distribution facility. Not only did the image and design of the office facility exceed Manhattan Beachwear’s expectation but the overall economics that were negotiated were 20-30% below that of other alternatives that were less desirable. Manhattan Beachwear also received the benefit of working with Jeff Molitor who acted as Project Manager on their behalf. His involvement reduced the total TI cost by 23% and allowed the project to be delivered on time and under budget. The new office location will provide the necessary “flagship” location/image Manhattan Beachwear desired and will allow employees and visitors to experience the true culture of the company.

TRANSACTION TYPE:RelocationSIZE:75,000 RSF Office190,000 RSF WarehouseSERVICES PROVIDED:Tenant Representation

10700 Valley View AvenueCypress, CA

6300 Valley View AvenueCypress, CA

OFFICE WAREHOUSE

PROVEN RESULTS

CHALLENGEInternational Logistics and Distribution (ILAD) is a well known 3PL for the apparel industry. They had been located in the same building for over four years and with a growing business had reached maximum capacity. Our team was introduced to ILAD through a material handling vendor who had been working with ILAD on an expansion facility of approximately 60,000 square feet. ILAD could not relocate to a larger facility due to their remaining two year lease obligation. Over a period of three months and numerous meetings, our team and a racking vendor developed a plan that would create a higher density warehouse environment without the need to expand. In order to achieve these efficiencies, ILAD would be required to invest capital in additional racking and new lift trucks to service the Very Narrow Aisle (VNA) plan.

ACTIONOur team developed a strategy that would create leverage with ILAD’s existing landlord which included the concept of consolidating the operations prior to the lease expiration.

In addition to negotiating on multiple opportunities, the team negotiated directly with ILAD’s existing landlord and provided documentation that illustrated the racking plan and overall capital cost for ILAD to remain in the building.

Our team evaluated the real estate and capital cost of three different scenarios: to consolidate and expand, renew the existing facility with an expansion into an additional 60,000 and renewing early at the existing facility with no expansion. RESULTSOur team structured a lease renewal package that commenced 18 months early, provided an immediate reduction of the rent, a favorable tenant improvement allowance and the removal of a burdening letter of credit. The savings that were achieved over the 18 month remaining obligation were sufficient to pay for the capital injection by ILAD in the amount of $625,000. ILAD was also able to avoid leasing an additional 60,000 square feet and has since reconfigured its operations, which now accommodates the same pallet position counts if an expansion had taken place.

TRANSACTION TYPE:Renewal and ExpansionSIZE:167,450 RSFSERVICES PROVIDED:Tenant Representation

11130 HolderCypress, CA

PROVEN RESULTS

TRANSACTION TYPE:Lease Restructure SIZE:223,000 RSFSERVICES PROVIDED:Tenant Representation

1201 Bell Avenue Tustin CA

CHALLENGELogomark, Inc. is the premier supplier of personalized gifts, accessories, pens, tools and timepieces in the United States. Logomark has occupied a 127,000 sf facility located in Tustin for over 9 years and during that time experienced substantial growth requiring them to acquire an additional 50,000 sf of warehouse at a separate location. The existing facilities provide functions for Creative Office, Specialized Production, Packaging, Storage and Distribution. The distance between the two facilities were causing significant inefficiencies and was decreasing output of production.

Due to the growth Logomark was experiencing and the need to expand their production and storage capacity, Logomark was forced to address their operations in advance of the scheduled lease expiration. This led to evaluating a complete relocation of the operations, bifurcating and expanding the existing building or acquiring a third facility to meet the demands of their clients growing production needs. It was also necessary for Logomark to acquire a facility that had high clear warehouse and an ESFR sprinkler system. ACTIONWe were engaged by the client 22 months prior to their scheduled lease expiration to analyze the current facility and surface single building and multi-building scenarios that could accommodate their operational objectives. Given the market constraints and lack of availabilities for industrial facilities greater than 100k sf in the greater Orange County market and a vacancy of less than 5%, we canvassed an expanded geography to identify suitable

alternatives while at the same time creating leverage with Logomark’s existing Landlord on a lease renewal/restructure.

We were able to uncover several alternatives, on market and off market, that were viable options and met the requirements of our client’s operational objectives. Before engaging in any discussions with each respective landlord/owner, our team quantified and evaluated the capital entry contributions required to retrofit each independent facility. Due to our process and market knowledge, we were able to identify an ideal solution that our allowed our client to continue to operate from the existing 127,000 sf facility while expanding into two adjacent warehouse facilities. One of the expansion facilities was not on the market, however, we were able to relocate the existing Tenant which allowed our client to secure an off market and adjacent expansion creating an operational campus for our client. This process also included renewal negotiations with the existing landlord and negotiating a significant capital allowance for the expansion buildings to be upgraded to ESFR sprinklers to meet our client’s material handling layout and requirements.

RESULTOur team was able to successfully leverage Logomark’s tenancy with their existing landlord which resulted in a lease restructure 10 months in advance of their scheduled lease expiration. Logomark had originally negotiated a fixed rental rate in the event they renewed the lease. The economics our team secured on the lease restructure represented an 18% decrease when compared to the economics of the fixed renewal option. The terms of the new deal on the 127,000 sf facility included rent reduction 9 months prior to their lease expiration, multiple months of rent abatement, $200,000 in landlord funded Tenant Improvements and the Landlord assuming financial responsibility to replace and provide ongoing maintenance to the roof and parking lot. The value of the roof replacement was over a $250,000 dollar savings to Logomark. We were also able to receive multiple months of free rent on the 96,000 sf worth of warehouse expansions, negotiated the landlord to assume the cost for ADA upgrades and installation of an ESFR sprinkler system. The capital contribution on the 96,000 sf warehouse expansions exceeded $6.00 psf.

www.ngkf.com

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industrial advisory services introduction

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