Monday, Jun. 25th, 2018

Behind the Lease: Tiff’s Treats

Behind the Lease: Tiff’s Treats

TIFF’S TREATS GOALS & OBJECTIVES

  • Tiff’s Treats was looking to relocate from an existing flex office in Central Austin, the goal to be to consolidate all operations in a Class A office space in the Northwest submarket.
  • Tiff’s Treats had a need for flexible growth options without locking into too much square footage initially.
  • Tiff’s Treats goal was to build a creative office environment to recruit and retain employees, as well as design a space that reflects the unique branding and story of their company.

HPITA STRATEGY & PROCESS

  • HPITA surveyed Northwest submarket for vacant options, as well as determined any options that included flexible growth opportunities in the future.
  • HPITA requested proposals from the preferred options and determined through persistent negotiation which Landlord would be willing to propose a tenant improvement allowance sufficient to cover a large portion of Tiff’s Treats improvements cost, while still achieving a below market rental rate.
  • After architect planning and pricing, HPITA provided financial analysis and strategy for achieving a higher TI concession from the Landlord.
Behind the Lease: Tiff’s Treats

TIFF’S TREATS OUTCOME

  • Tiff’s Treats was able to get Class A office space in a building in close proximity to many employees home, reducing commute times for many of the staff.
  • Tiff’s Treats agreed to lease 13,549 RSF while only paying for 10,000 RSF for the initial 9 months of the lease term, this resulted in a rent savings of $62,500.
  • Tiff’s Treats received a rate +/- $1.50 per RSF below the current market rent, this resulted in $100,000+ savings over the term.
Behind the Lease: Tiff’s Treats
  • HPITA successfully negotiated a tenant improvement allowance that was $20.00 per RSF higher than the Landlord’s original proposal, resulting in a savings of $270,000 as well as the ability to amortize any additional tenant improvement dollars needed.
  • Tiff’s Treats was able to consolidate their office in a Class A location, buildout a high end, creative office for their employees, while achieving overall concessions in excess of $500,000.

Author:

Cortland Lowe
Cortland Lowe
Senior Managing Director
(512) 538-1033
lowe@hpitx.com
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Cortland Lowe
Senior Managing Director
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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