Law firm right-sizes space in current location, securing new build-out and $3.5 million in concessions without disruption to business
Kiernan Trebach LLP (KT) represents national, state and local businesses, including many Fortune 100 and Fortune 500 companies in civil litigation. The Firm’s clients engage in a broad cross-section of American business, including the manufacturing, transportation, health, financial and service industries. The Firm also represents many foreign and domestic insurers and reinsurers.
KT engaged its commercial real estate representative in Washington, DC, three years prior to their lease expiration. At that time, KT required an assessment of their own space usage as well as evaluation of occupancy expenses relative to the rest of the market. Included in the assessment was their current submarket, the Central Business District (CBD), NoMa (north of Massachusetts Avenue) and the Capitol Riverfront.
After Project Management performed their due diligence, KT determined they wanted to update their space allocation per attorney thus creating smaller individual offices and increasing the number of collaborating spaces in-house and client meetings. The Strategic Real Estate Plan outlined all possible options, including whether KT could construct the new work environment within its current premises at a low cost or if relocating to another floor in the building or other location would be necessary.
KT took advantage of Cresa’s integrated services offering, utilizing transaction management, lease forensics, workplace strategy and project management. Cresa’s advisor renegotiated KT’s current lease 15 months prior to the Lease Expiration Date and right-sized their overall space by 14%. A critical component of renovating at 1233 20th Street, NW, The Lion Building, was the ability to use
swing space, free of charge, during the construction. The advisor was able to negotiate numerous flexibility options on KT’s behalf, most importantly the ability to vacate with no penalty in the event the building goes through redevelopment. In addition, KT attained building signage and influenced the future development of a tenant-only fitness center.
Factoring in tenant improvement dollars, reduced rent over 15 months, and rental abatement, Cresa was able to negotiate a landlord concession package of nearly $3.5 million.
Savings: $3.5 million