TENANT CASE STUDIES PORTLAND, OREGON
OUR TEAM DAVID SQUIRE, SIOR Executive Vice President & Managing Director Dave Squire has over 30 years of experience in tenant representation, large developments, and office investment sales. Dave has been awarded the CAB Portland Office Broker of the Year award eight times since 2001, and is widely recognized as Portland’s preeminent office real estate advisor. JOSH SCHWEITZ Managing Director During his 19-year commercial real estate career, Josh has earned numerous industry recognitions, including the Kidder Mathews Big Hitter Award for top producers in 2018, the Bill Naito Award for deal of the year and the Rookie of the Year awards for both the Commercial Association of Brokers and CBRE. TRAVIS PARROTT, SIOR Managing Director/Market Leader Travis began his commercial real estate career in 2012 and has become one of Portland’s preeminent office leasing advisors, winning the Bill Naito Award in 2018. Previously, he spent over a decade on the professional tennis circuit, winning the 2009 US Open mixed doubles title. TROZELL BENWARE Brokerage Services Specialist A third-generation Portlander, Trozell brings over 10 years of industry experience in commercial real estate, including both tenant and landlord representation in urban core. Trozell provides brokerage, transaction coordination, marketing and administrative support for the team. JOSHUA WILLIAMS Director Josh is a seasoned commercial real estate professional with over 17 years of experience representing office tenants and landlords. With a deep understanding of the local market and a track record of successful transactions, Josh is a trusted advisor to his clients and a respected member of the Portland real estate community. Outside of work, Josh is a passionate wildlife and nature photographer. MICHAEL GOETZ Associate Director Michael Goetz specializes in office leasing tenant and agency representation, with a focus on new business development and emerging companies in the Portland Metro Area. His entrepreneurial background gives him strong insight into the operational needs of his clients.
THIS IS OUR WORK Our experience sets us apart. We’ve been privileged to work with Portland companies on over 10 million square feet of office leases and sales. The following collection of case studies offers a sampling of projects we’ve completed, featuring a variety of industries, sizes, and locations. We bring this knowledge and experience directly into our work and we hope to have that opportunity with you. This is our work.
ZoomInfo retained Newmark to locate and negotiate a new headquarter campus to accommodate anticipated eventual growth up to 500,000 SF Challenge • ZoomInfo’s HQ in Vancouver, WA, could not accommodate their anticipated growth. Their ±25,000 SF HQ was split across several suites, and terms to renew, consolidate and expand into larger space were not favorable. • Larger blocks of space for a new HQ were available in Portland, but ZoomInfo’s workforce was located in Vancouver. The short commute and favorable tax benefits of working in Washington State were important factors. • ZoomInfo needed approx. 300,000 SF for immediate growth, with an additional 200,000 SF available for future expansion. But ZoomInfo did not want to pay for future expansion space until required. Solution • Newmark leveraged availabilities in Portland to create a competitive negotiation environment with Vancouver properties, reviewing 12 large block locations in Oregon and SW Washington. • Newmark negotiated a lease at the Port of Vancouver’s Terminal 1 waterfront development that used an innovative parking area that will allow approx. 200,000 SF of space to be converted to office when required. • This full-building lease solution gave ZoomInfo additional space to their HQ for future growth. Result • Newmark structured a long-term 366,000 lease with fixed expansion options that protected ZoomInfo from price increases, with high-ratio parking that can be converted to office space for future expansion. • The move to Terminal 1 gives ZoomInfo the ability to create a campus environment with all the existing retail amenities the Vancouver waterfront area has to offer. COMPANY ZoomInfo INDUSTRY B2B Data Services GLOBAL EMPLOYEES 3,500+ PROJECT TYPE Build-to-Suit SIZE 366,000 SF TIMESPAN 12 Months LOCATION Vancouver, WA
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Banfield Pet Hospital retained Newmark to locate and negotiate a new headquarter campus for over 1,000 employees in Oregon and Southwest Washington. Challenge • Although Banfield’s recently-occupied 150,000 SF facility was only six years old, it could not accommodate anticipated growth. • Remaining in their undersized facility would require over $15M to build an on-site parking structure, add office space, and improve density. • The capital investments required would not be realized on a future disposition. Solution • Newmark reviewed all existing buildings and development sites in Oregon and Washington that could accommodate up to 300,000 SF. • Newmark worked with state and local municipalities to negotiate economic and tax incentives. • Newmark analyzed transportation, labor, occupancy, financial investment, and development options to ensure project feasibility. Result • Newmark structured a long-term lease with fixed expansion options that protected Banfield from price increases. • Newmark negotiated seven-figure economic incentives with the State of Washington and local municipality for job training, traffic impact, and more. • Newmark completed the 10-month project in strict confidentiality until the press release was published. COMPANY Banfield Pet Hospital INDUSTRY Veterinary Services GLOBAL EMPLOYEES 10,000+ PROJECT TYPE Build-to-Suit SIZE 206,000 SF (up to 285,000 SF) TIMESPAN 14 Months LOCATION Vancouver, WA
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COMPANY Troutman Sanders INDUSTRY Law Practice GLOBAL EMPLOYEES 2,000 PROJECT TYPE Relocation & Expansion SIZE 16,294 SF TIMESPAN 12 Months LOCATION Portland, OR Troutman Sanders retained Newmark to open a new office in downtown Portland, Oregon with room to expand to 16,000 SF. Challenge • Troutman Sanders needed to expand their office quickly in Portland to meet their business expansion goals. • Troutman Sanders required a flagship building to match their company culture and clientele, and such opportunities were limited. • Although they would eventually need up to 16,000 SF, Troutman Sanders didn’t anticipate growing to full size for 18-24 months. Solution • Newmark surveyed all opportunities and developed a short-list of high-profile properties with potential to improve the interior of the premises. • Newmark’s in-house space planner redesigned a former government office to a modernized law office buildout, delivering preliminary drawings to Troutman Sanders’ architect within one week. • Newmark secured a 16,000 SF lease, only paying for half of the space for the first eight months of the lease term, and a path to 24,000 SF if required. Result • Troutman Sanders secured a landmark office at First & Main, one of Portland’s most exclusive office buildings on the Willamette River. • The deal was closed within a short time of beginning the project, providing ample time for Troutman Sanders to construct a high-end buildout within their aggressive timeframe. • Troutman Sanders saved over $200,000 by phasing their rent and received over $1,100,000 in construction allowance from the landlord to build their landmark office in Portland.
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The Portland Clinic retained Newmark to locate and facilitate a 40,000 SF build-to-suit medical facility in east Portland, Oregon. Challenge • The Portland Clinic had multiple locations on the Eastside and wanted to consolidate operations into a single flagship location with ample parking. • No existing medical office buildings were available, presenting an opportunity for The Portland Clinic to design a facility to meet their specific parameters. • Buildable sites within The Portland Clinic’s geographical target were extremely limited. Solution • Newmark surveyed the Portland market to identify development sites with high visibility and size amenable to The Portland Clinic’s operations. • Newmark focused on locations in developing neighborhoods that would provide a return on investment for a developer partnering with The Portland Clinic. • Newmark’s expertise in build-to-suit construction ensured resources were spent on viable sites only. Result • Newmark negotiated on behalf of The Portland Clinic to occupy 85% of a built-to-suit development by Venerable Properties. • Newmark mediated a transparent process, focused on accomplishing a fair return on investment for both parties involved. • Newmark negotiated early occupancy for The Portland Clinic, providing them a smooth transition to the new facility. COMPANY The Portland Clinic INDUSTRY Hospital & Health Care EMPLOYEES 500 PROJECT TYPE Build-to-Suit SIZE 35,000 SF TIMESPAN 12 Months LOCATION Portland, OR
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Laundry Service retained Newmark to relocate and expand its office to over 18,000 SF in Portland, Oregon and terminate its existing lease. Challenge • Due to rapid hiring, Laundry Service needed immediate expansion space for the Portland office although they were only two years into a seven-year lease. • No expansion space existed in the building, and Laundry Service didn’t want to manage a sublet of their current space. • Laundry Service preferred high-end creative space, so options were limited to newly built or renovated sites. Solution • Newmark began negotiating a lease termination, and in exchange, Laundry Service would move to a newly constructed building owned by the same landlord. • Newmark forecasted multiple sublet scenarios to vet the financial viability of subletting Laundry Service’s space and relocating elsewhere. • By pursuing multiple opportunities for an expanded Portland office, Newmark created a competition among Portland landlords for Laundry Service’s office. Result • Laundry Service terminated their lease without penalty and expanded their office by over 200% at the newly constructed Clay Pavilion. • Laundry Service saved over $650,000 in rent liability without needing to find a subtenant. • Laundry Service received over $1.6M in buildout contribution from the landlord to create their desired aesthetic with no out-of-pocket construction costs. COMPANY Laundry Service INDUSTRY Marketing Agency GLOBAL EMPLOYEES 500 PROJECT TYPE Relocation & Expansion SIZE 18,072 SF TIMESPAN 16 Months LOCATION Portland, OR
We are a New York-based marketing agency, and our team in Portland has grown significantly over the past several years. Rapid headcount growth (and therefore square footage requirements) creates challenges, and the Newmark team successfully helped us to navigate them. We were less than two years into our seven-year lease in Portland and already out of space. The Newmark team helped us negotiate a transaction in which we were able to terminate our existing lease under very favorable terms, and transition into a new space with more than twice the footprint, with no out-of-pocket costs related to construction. They achieved our goals and we would highly recommend them to other companies who are leasing space in this market.” UNDISCLOSED Chief Operating Officer 11
COMPANY SurveyMonkey INDUSTRY Computer Software GLOBAL EMPLOYEES 1,000 PROJECT TYPE Relocation & Expansion SIZE 38,288 SF TIMESPAN 12 Months LOCATION Portland, OR SurveyMonkey retained Newmark to relocate and expand their office to nearly 40,000 SF in Portland, Oregon. Challenge • SurveyMonkey’s Portland office was growing rapidly, leading to a need for much more space than their current footprint. • Planning for their future growth meant options were limited to spaces with contiguous expansion opportunities only. • SurveyMonkey needed a high-end space that represented their culture. Solution • After extensive market research, Newmark arranged for multiple site tours specifically tailored to SurveyMonkey’s parameters. • Newmark provided a detailed financial analysis of each site, allowing SurveyMonkey to compare the financial impact of each site. • Newmark positioned SurveyMonkey as a strong, highgrowth tenant that would provide long-term value and stability to any building. Result • SurveyMonkey relocated their Portland office to two full-floors in the US Bancorp Tower, the most recognizable property in Portland. • SurveyMonkey received over $2.5M in buildout contribution from the landlord to ensure a high-end creative buildout with no out-of-pocket costs. • SurveyMonkey secured expansion options to ensure future growth would be possible in the building.
13 This was the second time that SurveyMonkey worked with Josh and his team to find a new Portland location. I was thoroughly impressed with their ability to understand our vision and think outside the box to find an outstanding new space. I wouldn’t hesitate to recommend them and will use them again for any of our future needs.” Ross Moser VP Customer Operations
COMPANY Mineral HR INDUSTRY Human Resources EMPLOYEES 75 PROJECT TYPE Buyout & Relocation SIZE 14,631 SF TIMESPAN 2 Months LOCATION Portland, OR Mineral HR retained Newmark to relocate and expand its Portland, Oregon headquarters office to 15,000 SF and terminate its existing lease. Challenge • Mineral was subleasing space at below-market rent and desired to relocate their office without increasing costs. • Mineral’s neighboring tenant offered to incentivize their move, but only if Mineral could vacate within two months. • The process involved six parties in the negotiations, making a deal highly unlikely especially within a twomonth timeline. Solution • Newmark sought available spaces at a cost which would not dramatically increase Mineral’s current rent, including subleases. • Newmark conducted a financial analysis to determine the sum required from the neighboring tenant to make a relocation viable. • Newmark facilitated communication between the parties to ensure a rapid arrival at agreeable terms. Result • Mineral received a six-figure incentive from the neighboring tenant to vacate their space. • Mineral was able to find and negotiate a new sublease at 100 SW Market within weeks of beginning the process. • Mineral upgraded their office to a high-end creative building at 40% below market costs, saving nearly $1,000,000 over a 42-month period.
15 The Newmark team exceeded our expectations in moving our office to a Class A building at well below market rents via a sublease opportunity. We had a very short timeline to pull the project off, and were dealing with more parties than usual because of the various subleases. Newmark helped us achieve our goals quickly and we look forward to working with them in the future.” Nathan Christensen Chief Executive Officer
COMPANY Logical Position INDUSTRY Digital Marketing & Advertising GLOBAL EMPLOYEES 600 PROJECT TYPE Multiple Expansions SIZE 20,918 SF Total TIMESPAN 12 Months LOCATION Lake Oswego, OR Logical Position retained Newmark on multiple expansions of its headquarters office in Lake Oswego, Oregon totaling over 20,000 SF. Challenge • Logical Position, a leader in digital marketing, was experiencing rapid growth of 30% per year primarily at their Portland headquarters site. • Unable to predict growth trajectory beyond a threeyear period meant finding additional space on a short-term basis. • Maintaining connectivity between offices meant expansion sites were limited to those within walking distance of the headquarters building. Solution • Newmark positioned Logical Position as a highlydesirable, fast-growing company looking for strategic partnerships. A landlord willing to assist with short term needs could be the beneficiary of an eventual headquarters site. • Newmark toured multiple sites for direct lease and sublease opportunities which could meet Logical Position’s short-term preferences. • After securing a lease on a 10,000 SF office for a three-year period, Newmark negotiated an additional 11,000 SF for a two-year coterminous period. Result • Logical Position added an additional 21,000 SF of office space to accommodate three years of company growth within walking distance of their headquarters building. • Logical Position secured over $91,000 in construction allowances, and secured a right to terminate their leases and receive up to $110,000 in reimbursed costs if a headquarters was leased with their current landlord. • Logical Position was able to maintain maximum real estate flexibility by aligning the expirations of all leases to a singular date.
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Comcast retained Newmark to negotiate a renewal of its 56,000 SF office lease in Beaverton, Oregon. Challenge • Comcast’s rent had grown to approximately 20% above market. • Available alternative locations were in the west Sunset Corridor and relocating would have a negative impact on Comcast’s employees. • Conveying a sense of urgency to the landlord to make an aggressive offer to keep Comcast when they had no real desire to move was crucial. Solution • Newmark would create leverage by using Comcast’s superior credit, the softness of the market, and the single-tenant design of the building. • Due to very few 50,000-60,000 SF tenants in the market, Newmark made the landlord aware it would be difficult to back-fill Comcast’s space. Result • Newmark was able to leverage Comcast’s position and achieved immediate cost savings in rent reduction from their existing lease of $250,000. • Comcast received over $500,000 of rental abatement and more than $1M in tenant improvements with the ability to use up to 50% of the allowance towards additional rent abatement. • Comcast obtained a $1M letter of credit in addition to the landlord replacing 50% of all HVAC units and repainting the exterior of the building. COMPANY Comcast INDUSTRY Media Production GLOBAL EMPLOYEES 10,000+ PROJECT TYPE Lease Renewal SIZE 56,000 SF TIMESPAN 26 Months LOCATION Beaverton, OR
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Dunn Carney retained Newmark to negotiate a renewal of its office lease in downtown Portland, Oregon prior to lease expiration. Challenge • Dunn Carney’s lease rate had escalated to over 15% above market rates and multiple years remained on the lease. • Due to operational disruption, Dunn Carney was extremely reluctant to relocate even though much of their space was underutilized. • Dunn Carney invested heavily in a major remodel ten years prior, and the office was still in very good condition. Solution • Newmark communicated to the landlord that Dunn Carney would relocate unless the lease could be renegotiated despite multiple years of lease term remaining. • Newmark identified an alternate building where Dunn Carney could lease more efficient space and significantly reduce real estate expense. • Newmark concurrently identified a neighboring tenant with interest in taking Dunn Carney’s unused space. Result • Dunn Carney renegotiated their lease one year prior to expiration, reducing their space by nearly 9,000 SF. • Dunn Carney achieved a first-year savings of over 37%, and over 18% savings each year thereafter. • Newmark reduced Dunn Carney’s real estate expenditures by nearly 15% over a ten-year period. COMPANY Dunn Carney INDUSTRY Law Practice EMPLOYEES 100 PROJECT TYPE Early Renewal SIZE 30,285 SF TIMESPAN 12 Months LOCATION Portland, OR
The Newmark team continues to exceed our expectations. They negotiated a reduced price on our lease renewal, and helped us efficiently accommodate our firm’s future growth. They understand how law firms operate, and I would highly recommend their work to anyone needing to evaluate their office space.” Jon Bennett Managing Partner
Orrick retained Newmark to expand its Portland, Oregon office and terminate its existing lease agreement. Challenge • Orrick leased 6,700 SF but outgrew their space with over three years left on the lease. Orrick was not keen on subletting their premises due to the time and energy associated with managing a subtenant. • No contiguous expansion space existed on the floor and adding a secondary office would greatly hinder Orrick’s business operations. • Orrick enjoyed the rich amenities of the Brewery Blocks and preferred not to move. Solution • Newmark searched for vacancies in the immediate area that would accommodate Orrick’s increased size requirement. • Orrick contacted neighboring tenants and discovered that the building’s anchor tenant needed additional space. • Newmark completed a series of negotiations with the anchor tenant, creating the possibility for them to take over Orrick’s space for a large single payout. Result • Newmark was able to secure a high six-figure payment from the building anchor tenant in exchange for Orrick’s space. • Newmark located and negotiated a new lease directly across the street, so Orrick was able to increase their size by 200% without leaving the Brewery Blocks. • Orrick used the upfront payment to finance moving and construction costs for their new space with no out-of-pocket expenses. COMPANY Orrick, Herrington & Sutcliffe INDUSTRY Law Practice EMPLOYEES 2,800 PROJECT TYPE Relocation & Expansion SIZE 10,750 SF TIMESPAN 6 Months LOCATION Portland, OR
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COMPANY PaperCut Software INDUSTRY Computer Software GLOBAL EMPLOYEES 200 PROJECT TYPE Relocation & Expansion SIZE 6,014 SF TIMESPAN 5 Months LOCATION Portland, OR From day one we felt like Newmark was a part of the PaperCut team. It’s thanks to their market knowledge and expertise that we found such an amazing office while keeping the whole project right on budget. We couldn’t have done it without them.” Brenda Beenken US Office Administrator PaperCut Software retained Newmark to relocate its US headquarters office to downtown Portland, Oregon. Challenge • After outgrowing its initial US headquarters site, PaperCut sought a modern downtown work environment that reflected their tech-based industry and company culture. • Unpredictable growth trajectory in Portland meant PaperCut needed a short-term lease, so options were limited to those buildings in which little capital improvement was required. • Headquartered in Melbourne, Australia, communication between executives and local project managers spanned a 17-hour time difference. Access to communication was required at all times. Solution • Newmark sought out and coordinated site tours of over a dozen creative spaces in the downtown Portland market, each tailored to fit PaperCut’s specific parameters. • Newmark maintained optimal communication with the local team and Australian executives through off hours and weekends to ensure the 17-hour time difference never delayed the project. • Newmark specifically targeted developing submarkets outside the downtown core to uncover overlooked sites with a higher value proposition. Result • PaperCut relocated its US headquarters office to the newly developing Goose Hollow district of downtown Portland. • PaperCut accurately reflected its company culture at 23% less cost than the market average for comparable space. • When compared to other creative offices in downtown Portland, PaperCut saved an estimated $110,000 on real estate costs over a three-year period.
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The Art Institute retained Newmark to open a 60,000 SF campus with opportunity to expand to 100,000 SF in downtown Portland, Oregon. Challenge • The Art Institute desired a marquee downtown site that would provide the school with notable identity. • Vacancy in the downtown core was less than 5%, with few large spaces available. • The Art Institute required a dedicated street-level entrance for students and full access six days per week. Solution • After considering all possible development sites and build-to-suit opportunities, Newmark focused on the Brewery Blocks development in the Pearl District. • Newmark assessed the compatibility of space opportunities in the Brewery Blocks, which at the time was a collection of decaying warehouse buildings. • Newmark assembled four presentations for the Art Institute leadership on why the Brewery Blocks development would the best opportunity for a marquee location. Result • Newmark forecasted the value of being a pioneer in a reemerging Portland neighborhood. • Newmark completed a ten-year transaction, providing The Art Institute with a flagship building to accommodate their growth up to 100,000 square feet. • The Brewery Blocks redevelopment has become widely recognized as one of the most successful redevelopments in Portland. COMPANY The Art Institute of Portland INDUSTRY Higher Education GLOBAL EMPLOYEES 6,000 PROJECT TYPE Relocation & Expansion SIZE 60,000 SF TIMESPAN 2.5 Years LOCATION Portland, OR
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COMPANY Bridgewell Resources INDUSTRY Construction Supply Chain EMPLOYEES 200 PROJECT TYPE Sublet SIZE 18,269 SF TIMESPAN 5 Months LOCATION Tigard, OR Newmark was retained by Bridgewell Resources to sublet over 18,000 SF of unused space in their Tigard, Oregon headquarters office. Challenge • In the wake of a private equity acquisition, Bridgewell was utilizing 50% of its 36,000 SF headquarters. • Bridgewell’s landlord had not yet recuperated its upfront capital on the lease, therefore no buyout offer existed. • Bridgewell’s location along the 217 Corridor had relatively few companies seeking large blocks of space, limiting the number of potential sublease candidates. Solution • Newmark conducted a thorough analysis of Bridgewell’s lease and determined that up to $1.5M could be recuperated in a sublease scenario, even after all associated costs. • Noticing a shortage of 30,000-40,000 SF options in the 217 Corridor, Newmark determined that marketing Bridgewell’s entire office for sublease would cultivate the greatest number of candidates. • Newmark directed a multi-media marketing campaign to all real estate professionals and nearby companies, including direct calls, email graphics, mailers, and space-finding web platforms. Result • Newmark executed an 18,000 SF sublease for over $1.4M in total rent, reducing Bridgewell’s total real estate costs by over 26% over a five-year period. • Bridgewell beat out a competing property by providing an option to expand into the entire 36,000 SF premises, which appealed to the high-growth sublessee. • Newmark completed the project within five months, beating the projected timeline by over 60%.
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COMPANY FlightStats INDUSTRY Information Technology EMPLOYEES 100 PROJECT TYPE Lease Renewal SIZE 18,510 SF TIMESPAN 12 Months LOCATION Portland, OR FlightStats retained Newmark to negotiate a renewal of its 18,000 SF office lease in downtown Portland, Oregon. Challenge • Having been recently acquired by RELX Group, FlightStats preferred a lease commitment of less than five years to maintain flexibility. • Portland’s low vacancy rate for affordable creative office space in downtown meant FlightStats would have limited options to relocate at the end of their lease. • FlightStats was concerned their current 18,500 SF office would be too large for their operations in the near term. Solution • Newmark surveyed the creative downtown office opportunities for a range of sizes that could accommodate FlightStats’ budget and preference for a short-term lease. • Newmark circulated FlightStats’ need in the Portland real estate community, positioning them as a recently-acquired company looking to streamline real estate costs. • Newmark emphasized the importance of aggressive economics if the current landlord wanted to keep FlightStats in the building. Result • FlightStats secured a favorable four-year lease renewal at an aggressive lease rate without incurring the costs or disruption of moving offices. • FlightStats received over $150,000 of rental abatement and over $180,000 in tenant improvements from their current landlord. • RELX Group and FlightStats were able to accomplish their financial and operational goals while maintaining short-term flexibility for their Portland operations.
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COMPANY Signature Healthcare at Home INDUSTRY Hospital & Health Care EMPLOYEES 200 PROJECT TYPE Lease Renewal SIZE 9,612 SF TIMESPAN 8 Months LOCATION Tualatin, OR Signature Healthcare retained Newmark to negotiate a renewal of its office lease in the southwest suburbs of Portland, Oregon. Challenge • Signature’s operations in the building had been reduced by 21%, however, they were obligated to pay for the underutilized space for the remainder of the lease term. • Rates in the building had risen to nearly 17% above Signature’s final lease rate. • Signature’s employee base resided heavily in nearby areas, so moving would have negatively impacted employee morale. Solution • Newmark applied pressure on the landlord by circulating Signature’s search for new space in the Portland market, repeatedly communicating that aggressive economics would be the single most influential driver in the leasing decision. • Newmark positioned the early termination of Signature’s excess space as an opportunity for their current landlord to provide value. Result • As a result of Newmark’s strategic leverage and negotiation, Signature saved 12% on real estate costs over a five-year period. • Newmark successfully negotiated an 8% reduction of the landlord’s proposed rental rate along with multiple months of rent abatement, saving Signature an additional $150,000 over five years. • Newmark successfully negotiated an early termination of Signature’s excess space, saving $20,000 on leasing costs before the new lease began.
33 The team at Newmark did a fantastic job negotiating our lease renewal. They helped us terminate unused space while negotiating a low renewal rate and managed the whole process extremely well. I would highly recommend Newmark to anyone needing to move offices or renegotiate a lease.” Bob Thomas President
COMPANY Genesis Financial Solutions INDUSTRY Financial Services EMPLOYEES 500 PROJECT TYPE Relocation & Expansion SIZE 72,574 SF TIMESPAN 6 Months LOCATION Beaverton, OR Genesis Financial Solutions retained Newmark to relocate its 70,000 SF headquarters within the west side suburbs of Portland, Oregon. Challenge • Genesis Financial forecasted 200% headcount growth over the next three years, leading to a direct need for expansion options. • Genesis did not want to remain within the Portland city limits due to increased taxes, narrowing relocation options to the west side suburbs only. • Genesis was paying below-market rental rates and needed an upgraded facility; thus, finding an upgraded building would likely increase costs dramatically. Solution • Newmark focused on upgraded properties within Washington County that would aggressively compete for a 70,000 SF requirement. • Newmark circulated Genesis Financial’s requirement to the real estate market to ensure a competitive environment amongst various landlords. • Newmark focused negotiations on lowering overall costs of rent and buildout construction. Result • Newmark produced a cost-effective solution at an upgraded facility in the Sunset Corridor that also allowed for future growth. • Newmark successfully negotiated a tenant improvement allowance of over $700,000 to ensure Genesis Financial’s space would exceed quality expectations. • Newmark’s competitive process resulted in an 8% reduction of Genesis Financial’s real estate costs over the term of the lease.
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COMPANY Auction Pay INDUSTRY Computer Software EMPLOYEES 100 PROJECT TYPE Lease Renewal SIZE 14,580 SF TIMESPAN 6 Months LOCATION Tigard, OR Auction Pay retained Newmark to renegotiate its 15,000 SF office lease in Tigard, Oregon. Challenge • Auction Pay occupied a sublease in a high-rent building, resulting in a 40% increase in rent after the expiration of the sublease term. • Auction Pay’s space was configured inefficiently for their operations, limiting the ability to grow company headcount. • Auction Pay underwent significant personnel changes, complicating the relocation decisionmaking process. Solution • Utilizing in-house architectural services, Newmark reconfigured Auction Pay’s current office to accommodate a three-year growth plan. • Newmark identified and negotiated a new lease at an alternate facility at 15% lower cost than Auction Pay’s current building. • Newmark leveraged the compelling economics of the alternate facility to cultivate competition between the two landlords. Result • Newmark negotiated Auction Pay’s rental rate to 30% below the market, saving approximately $240,000 on real estate costs over a two-year period. • Newmark negotiated the length of the lease down to two years, providing flexibility for future business changes. • Auction Pay was able to reconfigure the space to accommodate its growing operations.
37 “We were very pleased with not having our expenses increase and to not have a move disrupt our operations. Newmark did a great Steve Sterba job in achieving our objectives.” President & CEO
OUR TEAM JOSH SCHWEITZ Managing Director 503.972.5530 [email protected] JOSHUA WILLIAMS Director 503.972.5504 [email protected] TROZELL BENWARE Brokerage Services Specialist 971.266.4956 [email protected] DAVID SQUIRE, SIOR Executive Vice President & Managing Director 503.972.5505 [email protected] TRAVIS PARROTT, SIOR Managing Director/Market Leader 503.972.5535 [email protected] MICHAEL GOETZ Associate Director 503.972.5511 [email protected] The information contained herein has been obtained from sources deemed reliable but has not been verified and no guarantee, warranty or representation, either express or implied, is made with respect to such information.