LM COHEN & COMPANY
| CLIENT: | LM Cohen & Co. |
| SERVICES: | Acquisition Disposition Financial Analysis |
BUILDING: | 1 West 34th Street (Disposition) 535 FIfth Avenue (Acquisition) |
| RSF: | 20,359 RSF |
LM Cohen & Company (LMC), a rapidly growing accounting firm, sought a real estate advisor to evaluate its occupancy in New York City. Specifically, it was growing out of its space (with 7 years remaining on its lease) and required a space solution providing flexibility to accommodate for continued growth in a building that better reflected its image and clientele.
Spaces Commercial was retailed to market its sublease and to evaluate options in NYC.
APPROACH
- Analyzed and evaluated all viable blocks of space on the market in the three defined submarkets
- Performed marketing analysis for the disposition of LMC’s office in the Garment District
- Performed a labor force analysis of relocation options including financial analysis
- Minimized work force disruption and political ramifications of relocation
- Provided flexibility in LMC’s occupancy through identifying expansion opportunities within the building throughout LMC’s lease.
- Evaluated prospective buildings capital stack to develop negotiating strategy
RESULTS
Executed a 14,000 RSF lease at 535 Fifth Avenue, a class A office property with a prestigious 5th Avenue address
- Average rental rate was 22% below market
- Secured 8 months of free rent after Landlord’s construction
- Received a full high end build out with no out-of-pocket expense
- Negotiated full renovation to the floors infrastructure to accommodate LMC’s needs
- Negotiated a subsequent 7,400 RSF lease expansion at 30% below market rent
Executed a 5,964 RSF sublease on LMC’s behalf at 1 West 34th Street.
- Secured a credit tenant to lease the space for the entire lease term
- Subleased at a profit offsetting some of LMC’s moving costs
- Negotiated delayed possession to accommodate for LMC’s occupancy at its new space