Tuesday, Mar. 26th, 2019

Behind the Lease: Periscope Holdings

“HPI’s guidance resulted in negotiated economic terms that were 15% below market rate (over $500,000 savings), mitigated over $300,000 by subleasing excess space, insured its growth plans, and ultimately resulted in a vastly improved workplace for its employees.”

Behind the Lease: Periscope Holdings

SITUATION

  • Periscope Holdings engaged HPI Tenant Advisors to advise the company on its planned expansion.
  • Periscope’s office was in an older downtown office building and the company desired an updated workplace to attract and retain talent.
  • The Downtown Austin office market was over 90% leased with escalating rents – Periscope, like most companies, was very sensitive to the cost of office space.
  • Many companies downtown have been unable to expand because of the tight market conditions – Periscope had planned to increase it headcount in the next 3 – 4 years.

HPI STRATEGY

  • HPI spent significant time understanding Periscope’s business needs and drivers then formulated a strategy.
  • HPI performed an exhaustive search of over thirty potential options and the spaces were evaluated and narrowed after space tours, qualitative analysis and extensive financial analysis.
  • HPI suggested, based upon strong leasing demand, that Periscope lease more space than the Company initially required with the plan to sublease the excess space for Periscope’s planned growth.
  • HPI, in cooperation with the architect, assisted in planning the sublease space and offering ideas on the construction of such space to make it as attractive as possible for a subtenant.
Behind the Lease: Periscope Holdings

HPI EXECUTION & RESULTS

  • HPI located and negotiated a favorable lease in a Class “A” building that provided many amenities for Periscope’s employees.
  • HPI immediately assisted in planning the sublease space strategy and employed an aggressive marketing plan to sublease the space.
  • After the lease was signed, the sublease market experienced significant softening due to the rise of co-working space.
Behind the Lease: Periscope Holdings
  • Undeterred, HPI aggressively marketed the sublease space through multiple channels … Direct email to brokers and tenants, social media and direct calls to prospects in the market.
  • HPI successfully negotiated a two-year sublease on behalf of Periscope at the same rental rate the Company was paying – a no-cost solution for our partner that guaranteed its critical mid-term growth objectives.
  • HPI’s guidance resulted in negotiated economic terms that were 15% below market rate (over $500,000 savings), mitigated over $300,000 by subleasing excess space, insured its growth plans, and ultimately resulted in a vastly improved workplace for its employees.

Authors:

Case McCoy
Case McCoy
Senior Managing Director
(512) 538-0068
cmccoy@hpitx.com
Cortland Lowe
Cortland Lowe
Senior Managing Director
(512) 538-1033
lowe@hpitx.com
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Case McCoy
Senior Managing Director
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From small towns in West Texas, Case McCoy found his way to Austin after deciding to attend the University of Texas. While earning his degree and real estate certification from the University of Texas, he also served as the team captain of the football team where he honed his skills as a leader and competitor.

Since beginning his commercial real estate career in 2014, Case has quickly become a top broker in Austin, Texas. After becoming the youngest broker named on the Top 10 Power Broker list, he has continued to solidify his place on this list, most recently being named the #2 Power Broker. Case focuses on negotiating leases for large tech companies, law firms, and professional services. He takes great pride in his vast knowledge of the business, competitive nature, and passion for serving his clients, giving him the opportunity to command his clients’ real estate process and allow them to focus on growing their own business operations. Through this process, Case has become one of the most efficient and effective Tenant Advisors in Austin.

Location
Austin
3700 N Capital of Texas Highway, Suite 420
Austin , TX 78746
MAIN: (512) 538-0068
Behind the Lease: Periscope Holdings

Behind the Lease: Periscope Holdings

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Cortland Lowe
Senior Managing Director
Linkedin

Cortland, originally from Augusta, GA, attended Wake Forest University on a golf scholarship. After college, he spent time as a tour professional, including competing in the 2009 U.S. Open. Since 2012, Cortland has completed more than 175 lease transactions for some of Austin’s most well-known and fastest growing companies, including RetailMeNot, H-E-B, and Tiff’s Treats. In his time with HPI Tenant Advisors, Cortland has consistently been listed on Costar’s Heavy Hitter List, and continues to expand the HPITA tenant representation business by developing office space strategies for a growing number of companies including technology, law firms, financial institutions, and healthcare.

Cortland is actively involved in the Commercial Brokers Association of Austin, the Real Estate Council of Austin, and the Wake Forest Deacon Club.

Location
Austin
3700 N Capital of Texas Highway, Suite 420
Austin , TX 78746
MAIN: (512) 538-1033
Behind the Lease: Favor

Behind the Lease: Favor