The Situation
Greenhorne & O’Mara engaged the services of RCR for the fifth time in 20 years to secure proposals from their existing landlord as well as other competing properties in order to leverage the market concessions available.

The Solution
The declining demand for space provided extremely competitive proposals. While no contiguous space was available, the economics from their current landlord caused Greenhorne & O’Mara to execute a new five year term.

The Result
A savings of 35% over the initial proposal was realized just in rent in addition to tenant improvements and signage.

“We’ve used Rich Commercial Realty’s services five times over the past 20 years,” stated Joe Skinner, Regional Vice President for Greenhorne & O’Mara, Inc. “While we get calls from time to time from other brokers, RCR’s tenacity made them a long term strategic partner for our success and growth.”

The Situation
Advanced Plastiform, Inc. (API) specializes in custom plastic thermoforming for a range of industries and needed new warehouse space to handle expanded manufacturing operations. They approached Rich Commercial Realty/KW Commercial with the challenge to locate a facility of at least 50,000 square feet. API was open to new construction or an existing building; however the new site would need to offer enough space to expand in the future.

The Solution
Rich Commercial Realty simultaneously began a comprehensive market survey of existing warehouse space in the area between Eastern Wake County and into Franklin County while searching for unimproved land that would accommodate new construction in the same area. Agent Tripp Lineberry reached out to his contacts to receive bids for new construction to have ready should API select an undeveloped site. After locating an existing facility in Zebulon that was listed close to the goal price, Lineberry moved quickly to ensure due diligence was completed prior to a formal contract to keep the deal moving forward according to the client’s aggressive timeline. Lineberry kept in close communication with both buyer and seller’s agent throughout the process to ensure required improvements were completed on time so that API could receive accelerated depreciation, which was the key to finalizing the deal.

The Result
Rich Commercial Realty negotiated a significant price reduction and inclusion of office furniture and fixtures in the transaction. API finalized the purchase in time to earn accelerated depreciation and purchased the building at nearly half the cost of what they were looking to spend for a similar space in Raleigh.
 
“Rich Commercial Realty was forward-thinking and went above and beyond what was expected of them to maintain our timetables, which was imperative in getting the deal closed,” said Chris Jolly, owner of Advanced Plastiform, Inc. “They were professional and always available. I felt like our company was their number one priority.”

The Situation
Easter Seals UCP North Carolina and Virginia, based in Raleigh, is a lifelong partner to families managing disabilities and mental health challenges. The nonprofit serves more than 17,000 individuals and their families annually, enhancing the quality of life for individuals and maximizing their potential for engaging in the communities. Easter Seals UCP approached Rich Commercial Realty/KW Commercial with the need to consolidate space between two offices in the Raleigh area. However, the leases expired at different times, complicating the timeline for consolidation. The cost to relocate the offices would need to be a cost factor in the analysis of the transaction.

The Solution
Rich Commercial Realty first developed a market survey of 12 properties that fit the needs of the client and obtained Request for Proposals for the top three properties. By positioning the final properties against one another, Rich Commercial Realty created a competitive atmosphere to secure concessions from the landlord. In order to allow both offices to vacate their current space at the same time to reduce moving costs, Rich Commercial Realty negotiated a hold-over at the same rental rate for the lease that expired first.

The Result
Rich Commercial Realty delivered a 23% savings from first proposal to final lease on Easter Seals UCP’s new space. Additionally, the new lease included significant concessions: free rent, assistance with moving expenses and improvements. The client has all Raleigh-area resources under one roof for streamlined operations.

“Rich Commercial Realty was a tremendous resource for us,” said Connie Cochran, Executive Director of Easter Seals UCP. “We would recommend their services without hesitation.”

The Means
AVEC engaged Rich Commercial Realty with the challenge of securing a new location for their business close to their current site in order to retain their current client base yet gain space for additional service bays. AVEC approached Rich Commercial Realty in July 2009 with the requirement that their decision would be finalized in November 2009 and occupancy of their new space would begin January 1, 2010.

The Solution
The Rich Commercial Realty team rapidly completed a thorough assessment of the possible properties in a 15-minute driving radius of AVEC’s current location in order to present the widest range of options possible to the client. Rich Commercial Realty aimed to meet AVEC’s goal to locate a property that offered more square footage at significant savings.

The Result
Rich Commercial Realty was able to locate space almost five times larger than AVEC’s current location at 75% of their prior lease rate. The new location is only 15 minutes away from their old site and many clients happily made the drive to the new location.

“We could not be more pleased with our new location,” said Andy Trexler, owner of AVEC Service Center. “We were referred to Rich Commercial Realty by a customer of ours and we will happily be the source of future recommendations based on our positive experience with the entire team in listening closely to our needs.”

The Means
McKinney, an award-winning advertising agency based in Durham, engaged Rich Commercial Realty with the challenge of reducing overhead expenses during the unpredictable business conditions of 2009. Happy with their unique space in the historic American Tobacco Campus, McKinney wanted to stay put, however, they wanted to leverage the market conditions to take advantage of current concessions being offered. The solution needed to be a win-win for McKinney and the landlord.

The Solution
Michelle Rich Goode approached the landlord with a solution that extended the length of the lease and provided for a lower per-square-foot rate for McKinney over the term. Securitizing other financial terms was a factor to the landlord, which Michelle was also able to build into negotiations.

The Result
Michelle negotiated a counter-offer that yielded a “blended and extended” lease that allowed McKinney to reduce their rental expenses during a tough economic period yet ensured that the landlord still received additional term to offset the concessions offered.

Additionally, negotiations between the landlord and McKinney caused the lease guarantee to be replaced with a security deposit at the end of the initial lease term. A Tenant Improvement Allowance was another economic incentive obtained for McKinney’s future needs.

“Over the years Michelle has served McKinney well, both for her strategic partnership and keen knowledge of market conditions,” said Joni Madison, partner and COO of McKinney. “Her strong relationship with American Tobacco and masterful negotiation skills helped us make a tactical business decision that helped our bottom line immediately and secured our home at American Tobacco for years to come.”

To assist Hands on Health leverage favorable commercial real estate conditions and locate the right fit space for their growing business.

The Means

Michelle Rich Goode and Harold Rich of Rich Commercial Realty/KW Commercial listened closely to the client’s needs to prepare a strategy to secure the right space at the right price. At the Cary location, Hands on Health required a space that would accommodate business growth. They also desired plumbing for washer/dryer units. The cost to upfit their current space to accommodate a laundry facility proved prohibitive. Their Raleigh location was ideal but the time was right to negotiate more favorable rental terms.

The Solution

Rich Commercial Realty approached the Raleigh property’s landlord about Hands on Health’s desire to remain in their Raleigh location while underscoring their need to renew the lease at more favorable terms. Prepared with a range of properties that were comparable to the space the client was currently occupying, the Rich Commercial Realty team negotiated aggressive rent concessions. In Cary, Rich Commercial Realty represented the client in negotiations to move to a larger suite within the same complex.

The Result

A lease renewal enabled Hands on Health to continue doing business at their established Raleigh location while reducing rental overhead.
In Cary, Rich Commercial Realty secured a larger space and negotiated aggressive rent concessions and relocation assistance from the landlord.

“Thanks to Michelle and Harold for keeping our best interest as tenants as their top priority,” said Elizabeth Laurino, Co-owner. “As our representatives, they alleviated the pressure of lease renegotiations and allowed me to focus on our business.”

“Rich Commercial Realty is a valued partner to our business,” said Tammy Campbell, Co-owner. “Their tenacity in negotiations helped us accomplish our goals of reducing rental overhead and expanding into more suitable space.”

To help HH Architecture purchase an office or warehouse property in downtown Raleigh or Glenwood South.

The Means

Michelle Rich Goode and Tawnie Gainer of Rich Commercial Realty/KW Commercial teamed to locate properties in specific neighborhoods by conducting a thorough market analysis. Throughout the process, they had to balance the client’s need for expandable space that could be renovated with their goal of purchasing a property that would be a solid long-term investment.

HH Architecture required a building that was available at a low cost per square foot and could be renovated and expanded to accommodate future business growth. They also wanted to make a statement with their work and reflect their architectural skills in their new building. After making several offers and being rejected in favor of all-cash offers, among other challenges, HH Architecture became discouraged that their goal of securing the right space at the right price was not possible.

The Solution

Tawnie and Michelle located an available 4,000 square foot property offered by a motivated seller in a transitional neighborhood in downtown Raleigh. Estimates for required asbestos abatement and a completed set of plans for the total renovation of the building assisted with the appraisal process for the lender’s requirements. The due diligence process was expedited by their efforts in obtaining information about a planned Progress Energy substation near the property and investigating the potential purchase of adjacent lots for future expansion.

The Result

HH Architecture purchased the building at below asking price. The building, formerly a Class-C industrial space is being transformed into a Class-A office space. HH Architecture will complete renovation work and will move into their new space by Mid-April 2010.

“Rich Commercial Realty proved to be both patient and tenacious,” said Kristen Hess, HH Architecture Principal. “Our needs were specific and Michelle and Tawnie tirelessly worked to help us find the right property.  We truly could not have done this without them!”

“As always, Rich Commercial approached this deal with their client’s best interests in mind,” said Chris Young with First Citizens Bank. “Tonia Haislip and I enjoyed working with them and helping them work towards their business goals.”