A new forward thinking technology firm specializes in setting up networks on proprietary platforms while serving their clients 24/7.

The Challenge:

The leaders of the technology firm realized that on any given day over 45% of their employees were out of the office servicing clients, and that percentage was increasing every year. The existing 80,000 sq ft layout of their space facilitated 100% of their employees.

The Solution:

An alternative and strategic plan was in order to facilitate the needs of their employees. A “hoteling” concept allowed individuals to reserve, in advance, the type of space required to complete their in-house tasks. Components of their existing office were studied and re-planned:

• Conference type 2 for (8-10) people 40'-0” x 20'-0” = 800 sq ft
• Conference type 1 for (5-6) people 20'-0” x 20'-0” = 400 sq ft
• Team Office for 2-3 people 20'-0” x 15'-0” = 300 sq ft
• Individual Office 12'-0” x 10'-0” = 120 sq ft
• Workstations 6'-0” x 6'-0” = 36 sq ft

The net rent rate was approximately $19.50 sq ft with taxes and operations approximately $5.50 sq ft. The gross rent rate was approximately $25.00 sq ft with an escalation of 3.5%.

The new lease rendered approximately 60% of the 80,000 sq ft or about 48,000 sq ft total.

The savings per year in rent was $800,000 with the total savings in rent for the term of the (10) year lease $8,000,000.

Case Study 3