MakerSquare

Challenge

• ECR was hired to solve for MakerSquare’s office requirement in downtown Austin in a tight market.
• The start-up tech company required a space consisting of open space for classrooms and smaller meeting rooms with a short lease term due to anticipated rapid growth.
• Further, the company had classes starting one month from the time ECR was engaged.

Strategy

• ECR and MakerSquare worked together to create a clear and accurate schedule, strategy, and budget.
• Through the planning effort, ECR researched and identified a couple of viable options, which included properties in and just outside of downtown that would consider a shorter-term lease.
• ECR researched and prepared reports for all options in the marketplace in order for MakerSquare to make the most informed decision.

Results

• With a short timeline to work with and a tight downtown office market, ECR quickly sourced a 4,650 RSF office space in a historic building in downtown Austin that provided the creative environment that MakerSquare was looking for.
• Through research, it was realized that a lease had fallen through on the space just days before and the landlord did not have a backup solution.
• This enabled MakerSquare to capitalize on the landlord’s position and a well-executed negotiation strategy allowed MakerSquare to achieve a below-market rental rate, a favorable rent abatement period, and a short-term lease, all of which occurred in less than three weeks.
• Further, the amount of rent abatement received allowed MakerSquare to offset the cost of the excess space until it was able to be utilized as another classroom.
• The approximate savings for MakerSquare is in excess of $110,000.00 over the duration of their lease based on their budget and the economic concessions we achieved.