Support the client for their lease negotiation

Client
  • Boston Scientific
Space
  • 5,000 Square Metre
Industry
  • Healthcare
Locations
  • Paris
Services Provided
  • Transaction Management
  • Consulting
Cresa Team
  • Charles Walckenaer

Client Objectives

  • Explore Stay VS Leave opportunities in the near vicinity.
  • Leveraging BSC’s early termination right under the lease to negotiate a renewal and expansion in the current location with favorable terms to offset planned capital spend.
  • Use the expansion to achieve the BU needs, with significant rent and works incentives.

Results

  • Scan the market availabilities and adopt on the stay scenario: creating leverage when clear intent was to renew. Lease flexibility is hard to come by in the market, so multiple negotiations with the landlord took place to attain it on all floors.
  • 13.7% rent savings ($/RSF basis) over the 6 years lease term, with 10 months of free rent spread over the lease term, and additional concessions of $350K savings for avoidance of re-instatement works.
  • 30% space increase translated with only 6,5% rent increase.
  • Landlord to upgrade building common areas and exterior.
  • Adequate parking for employees.
I want to thank first the negotiation done by Charles, great support on this key topic. The price per square meter is going down from 180€ for the current contract to nearly 155€ for the new one, and also a lot of improvement on the new lease compared to the oldest one. Thank you for this great achievement.
Richard Bourges  |  Head of France Operations
Boston Scientific

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