Clear Cube Technology

Challenge

• ClearCube Technology hired ECR to serve as its commercial real estate brokerage firm and consultant after failing to realize a solution to its needs with multiple other service providers.
• At the time of hiring ECR, ClearCube had a multi-year lease for approximately 40,000 RSF with a real requirement for less than half of this space.
• ClearCube was spread out among the large space resulting in a very high monthly office rental expense, inefficiencies in operations, and a lack of connection among employees.
• Further, ClearCube was in need of a new office environment with a strong preference to own its property for the long term.

Strategy

• ECR met with ClearCube and performed research to better understand their actual real estate requirements as well as potential solutions.
• Architect resources were utilized to perform studies of how the current office space could be most efficiently used to free up vacant space.
• ECR explored all options from negotiating a buy-out to downsizing and restructuring the lease, as well as subleasing excess space.
• After exploring all options, the most cost-effective solution was to sublease the excess space.
• ECR implemented an aggressive marketing campaign and within 10 months, all the excess space was subleased, saving ClearCube over $300,000 per year.
• Then ECR began analyzing lease versus purchase opportunities for ClearCube. Multiple opportunities were presented including financial analysis comparisons for each property.
• With sales options limited, ECR found an off-market opportunity that fit ClearCube’s needs very well and proactively negotiated with the new owner to sell the property.

Results

• ECR and ClearCube were able to negotiate a purchase agreement for 3700 Parmer Lane while this property was off-market at a substantial discount compared to the other offerings available in the marketplace.
• Further, the property provided the location and access to amenities the company wanted. ClearCube now owns 3700 Parmer Lane as their long-term corporate headquarters.
• Through strategy, subleasing, being proactive and diligent, ECR and ClearCube have worked together to save hundreds of thousands of dollars and to realize the solutions ClearCube needed and deserved.