“Acquiring this property was a business-critical need for our company, so it was imperative that we form and maintain a positive relationship with the building owner. DEODATE helped us achieve that by streamlining negotiations and securing a long-term lease at a great rate.” – Head of Corporate Real Estate
OVERVIEW
After assessing its current portfolio of locations across Southern California, a leading life sciences corporation identified a strategic opportunity to expand its operating footprint. The expansion would streamline operations and communications across more than half a million square footage of office space for the company, but they found themselves at an impasse.
Our client occupied two of the four buildings spread across a large campus divided amongst three separate tenants. Those two buildings were separated by a centrally-located third property that, if our client were able to acquire it, would enable them to run critical data infrastructure between them in order to create a single, unified network and communications platform. But negotiations with the landlord and tenant had stalled, and worse, had become burdensome for all parties.
CHALLENGES
Identifying cost-savings opps for landlord and tenant | A need for mutual trust between landlord and tenant |
Inefficient, unproductive negotiations | Lack of market data for in-house corporate real estate team |
High commission cost of working with brokers | A need for proactive, not reactive growth strategy |
SOLUTION
DEODATE worked with the client to conduct a full assessment of their current portfolio of clinics. This assessment quickly revealed the group’s leaders and laggards, as well as external factors and population demographics that their highest-performing locations had in common. Demographics that could be mapped when looking to identify future locales. These external factors included elements such as: income level, population density, traffic counts (vehicle and pedestrian), proximity to competitors, potential targets of acquisition, as well as legislative analysis that included current regulations and forecasted changes.
By charting these sources of valuable data, and many others, DEODATE was able to establish a set of core Key Performance Indicators (KPIs) that were aligned with the same industry-leading standards of larger medical groups. These standards and best practices would enable the client to make informed decisions around their national expansion initiatives, whether adding to their existing portfolio or relocating underperforming clinics.
NEXT STEPS
Our client has moved from taking reactive steps toward their business growth to a much more proactive approach that’s required to succeed in a highly competitive national real estate market. Their business leaders are now leveraging historic, current, and projected data that each play a role in their mission to provide best-in-class medical services to greater numbers of populations in need. DEODATE continues to scale out the client’s expansion strategies even further by building out rich datasets around site selection, parking, street visibility, potential joint ventures and partnerships, real estate cost forecasting, optimal site footprints, market analysis, and asset performance.
Contact us today to inquire as to how these results were achieved, and how similar, tailored strategies may assist your current initiatives.