RetailNext is a fast-growing, big data and analytics company for brick-and-mortar retailers like Bloomingdale’s and American Apparel. Located in downtown San Jose, RetailNext engaged Cresa when it was clear that its current space and landlord couldn’t accommodate its rapid headcount growth. The initial thought was that about 12,000 SF would work for the next 24 months.
RetailNext had several key objectives guiding its real estate expansion. Staying in downtown was priority number one as the current employees had come to enjoy public transportation and downtown amenities in easy walking distance to the office. The second priority was to find a space that would help to recruit new talent. The space had to be open, airy, modern, and offer abundant natural light. The employees also requested a fitness center, a larger kitchen area, and easy, onsite parking. Further into the process, RetailNext realized that moving every few years to keep up with growth could be very costly and disruptive, and at the same time it didn’t want to have a far-reaching commitment with heavy upfront costs to explain to its investors. Cresa had to find a new facility and landlord that could accommodate RetailNext’s torrid growth rate without charging for the entire space upfront. Our goal was to find a phase-in opportunity that was as close to “turnkey” as possible.
After space programming, forecasting, and modeling for RetailNext’s senior management, Cresa used its 30-year working knowledge of downtown San Jose to identify suitable options. After an initial list of almost a dozen potential buildings, Cresa and RetailNext narrowed the list to three top candidates. Cresa then leveraged a somewhat “soft” downtown market to create competition for all three landlords. We leveraged one landlord against the other until we were able to produce the best possible result for RetailNext.
A true turnkey solution on a full floor comprised of 17,101 SF of space at 60 S. Market Street. The space will be delivered to RetailNext at the lowest possible cost and with new interior improvements rivaling the most desirable buildings in Silicon Valley. The phase-in lease arrangement over six years included:
- Eight months of free rent.
- Complete furniture and wiring package.
- Floor-to-ceiling glass offices and conference rooms that offer natural lighting.
- Three years of free parking.
- New onsite fitness center.