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Case Studies



Opex Reduction



Analysis:
• Operating costs were higher than the original estimate.
• Expenses seemed excessive and above market.

Action Plan:
• Determine that operating expenses were high.
• Provided documentation of original estimated expenses.
•Contacted Landlord to challenge actual expenses.
• Expenses reduced to better align with original estimate.

 
“The OPEX Team was not only thereto manage our  initial real estate process... they were there to help when we needed them to get our OPEX expenses  reduced after the deal was closed…”

Bruce Fram, CEO
GridIron Systems
     

 

Space Consolidation



Analysis:
• Control 4 is a venture funded start-up that recently signed a lease to expand into the Silicon Valley area. 
• Market turned negative and company wanted to consolidate and possibly sublease space.

Action Plan: 
• Met with Control 4 to determine space needs.
•Provided complete market survey of availabilities and comparables.
• Determined best to sublease space.
• Recommended market rent and provided marketing material for space. 
• Placed space on market and posted space on vctradingpost.com.  VC’s were notified through an e-mail blast.
 
“Coming to us as a referral from one of our venture investors, the OPEX Swat Team has consistently exceeded our high expectations. Regardless of deal size, they have approached several projects with passion and commitment.”
Mark Novakovich, VP Finance
CONTROL 4
     

 

Blend & Extend



Analysis:
• 12-18 months remaining on existing leases. 
Two building complex (150,000 Sq. Ft.)
• Above market rents
• Growth Needs/Image
• Blend & Extend/Reconfigure / TI Package

Action Plan: 
• Worked with key executive to determine space needs. 
• Provided market survey of comps and availabilities.
• Determined TI’s
• Negotiated with Landlord to reduce current lease obligation by over $1,000,000 and provided TI package of $750,000.  Extend over a long term with free rent and aggressive new market rents.
 
“Lori and Tom are cognizant of the nuances of this unique real estate market and through their business acumen were able to leverage their knowledge to create great results Aruba Networks.”
   
Steffan Tomlinson, CFO
ARUBA Networks
     

 

Start-Up - Existing Companies



Analysis:
• Lease Expiration in 6 months
• Very inefficient space configuration on multiple floors
• Older building with inadequate HVAC
and building systems.

Action Plan: 
• Met with key management to determine space needs
(projection analysis)
• Aligned business plan with lease/facility 
• Negotiated new lease with free rent and tenant improvement package
• Coordination of project, construction and move management
 
“I have had the pleasure of working with Tom & Lori on multiple lease transactions and they have come through for me with flying colors every time.”
Hitesh Shah, CFO
Fat Spaniel Technologies
     

 

Sublease Space - Company Sold/Closing Down



Analysis:
• Spike Source is a venture funded start-up that recently sold all of it’s intellectual properties and will shut down operations
• 2 year lease obligation.  Current rent more than market rent
• Space had been marketed for sublease by landlords/broker for approximately 6 months

Action Plan: 
• Met with board to determine best exit strategy
• Provided analysis of market rents, trends and financial obligation
• Determind the optimal asking rent
• Created a marketing agenda/brochure and posted space on vctradingpost.com
• VC’s were notified of space, as well as local companies, creating a competitive situation
• Space subleased within 30 days
 
“Lori and Tom are a great team.  They really went the extra mile(s) to make our deal happen.  Not only were they accessible and responsive, but they were also thorough in running the numbers and willing to take the lead in negotiations that promised to be complex and frustrating.  They really changed my perception of what a commercial real estate broker could do for a business. ” 
-Katherine Noeson
GM
 
 
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