Liberty Park Capital

Client’s Goal

• As Liberty Park Capital (“LPC”) evaluated its future office requirements, the preference was to stay within a small geographic area in West CBD or Westlake.

• It was important to be near walkable amenities while minimizing renewal costs and securing a 3-year term to maintain future flexibility.

Challenge

• Create negotiation leverage to secure a below-market rate while staying in the same area or building.

• Liberty Park Capital’s current building was recently purchased, and the new owner had increased lease rates.

Strategy

• ECR scoured the market for options available in LPC’s target area and at their current building, Centre One. ECR evaluated several options for LPC to pursue, one of the options being a renewal.

• Recognizing the downward market pressure and the new owner’s need to keep occupancy up, ECR was successful in creating maximum leverage in renewal negotiations with the landlord, which included conveying to the landlord the downtime and release costs that would have been incurred if Liberty Park Capital relocated to another building.

Results

• ECR negotiated a tenant-favorable 3-year term, which provided Liberty Park Capital with future flexibility.

• The 1st year cost per square foot was 26% lower than the 4 other direct deals recently completed at the building.

• LPC also converted and applied 75% of the tenant improvement allowance negotiated to free rent.

• Using ECR, Liberty Park Capital achieved the lowest overall rate at the building and a total concession package at almost 3x the average concessions on a $$ / SF basis compared to the other new and renewal leases directly negotiated at the building from the previous year.