Mykal Grant Day Spa and Salon – Case Study

Submarket: Uptown Denver, 450 E. 17th Street, Appx. 3,000 RSF

Overview

Tonya Chaney, owner of Mykal Grant Day Spa and Salon, had been looking to relocate her business for almost two years. Her previous address in the trendy Highlands neighborhood of Denver would no longer be available after November 2010, at which time the landlord desired to redevelop her building for other business uses. Tonya urgently needed to find an alternative location for Mykal Grant in as trendy of a neighborhood that would be accessible to her existing client base and appealing to new clientele. As with most business owners, she wanted to keep her occupancy costs low and negotiate the very best deal with her new prospective landlord. She also preferred to identify a scenario where she could rent with the option to own her space after a few years. Tonya selected The Nesbitt Group to serve as her company’s real estate advisor and in identifying the most suitable real estate solution for her business.

Results

After performing a preliminary market survey of all available relocation options in Tonya’s desired neighborhoods, The Nesbitt Group represented Mykal Grant in the negotiation of a lease with option to purchase of the penthouse unit at 450 E. 17th Street in the accessible and trendy Uptown neighborhood of Denver. The new location has received rave reviews from Tonya’s existing clients, and has positioned her business to pursue new clients.

Value Added

The Nesbitt Group negotiated significant lease savings for Mykal Grant, well below the going market rate of $20 per sq. ft. for similar space in the area. Approximately $75,000 in rent savings was achieved over the life of the lease, and a turnkey tenant improvement build out of over $100,000 was negotiated by The Nesbitt Group on Mykal Grant’s behalf.

“Eric and The Nesbitt Group significantly exceeded our expectations. The level of attention to detail by Eric and his staff helped minimize the time devoted to negotiating, which provided us more time to devote to building out our beautiful space. Our time constraints would not have been met had Eric not been involved on the front end and throughout this process!”
— Tonya Chaney– Owner – Mykal Grant Day Spa and Salon

Keller Williams Downtown – 2010 Case Study

Submarket: Downtown Denver, 901 Auraria Parkway, Appx. 7,100 RSF

Overview

The Downtown Denver Office of Keller Williams desired to terminate their office lease and relocate to a more desirable building and location. Their existing building was in poor condition and their space did not project the desired image sought to be portrayed to clients and real estate agents. Keller Williams hired The Nesbitt Group of KW Commercial to evaluate all of the available buildings in Downtown, LODO and the Golden Triangle. Their prior location had an abundant parking ratio and it was essential that any new building provide their employees with ample parking spaces, as well as prominent signage exposure. Keller Williams also hired The Law Offices of Eric L. Nesbitt, PC to negotiate an early lease termination with their existing landlord.

Results

After an extensive search, Keller Williams made the decision to enhance their image by moving to 901 Auraria Parkway, adjacent to the Pepsi Center in Lower Downtown Denver. The Nesbitt Group identified a location that would provide superior signage opportunities and unlimited free parking in the Pepsi Center lot for employees and agents. In addition, The Nesbitt Group negotiated aggressively with the Landlord’s agent to achieve a below market rental rate and significant tenant improvement money. Finally, the Law Offices of Eric L. Nesbitt negotiated a termination agreement with the prior landlord that provided for Keller Williams’ lease to be terminated 2 years early.

Value Added

In representing Keller Williams, The Nesbitt Group negotiated a lease savings of approximately $348,000 as compared to the landlord’s initial lease proposal. In addition, an upfront Tenant Improvement Allowance of $106,000 was negotiated. Finally, the prior landlord agreed to waive approximately $33,000 of prior rent obligations in exchange for Keller Williams vacating their premises prior to the expiration of the lease.

“Eric Nesbitt and his team at The Nesbitt Group exceeded our expectations and were essential members of our team as we evaluated the alternative locations in the market. We were thrilled with our experience with their team and will definitely be using them for our future real estate needs.”
— Brian Smith – Operating Principal– Keller Williams Downtown

The Monroe Group – 2010 Case Study

Submarket: Southeast Denver, 4600 Ulster Street, Appx. 2,944 RSF

Overview

The Nesbitt Group Team of KW Commercial recently represented the Monroe Group on an office tenant representation assignment. The Monroe Group desired to improve their image with clients, and their existing office space did not portray the appropriate feel and look for their business. Understanding that Denver office market was soft, the Monroe Group also wanted a very aggressive lease deal, and were reluctant to utilize the services of a broker in the process. The President of the company believed he could negotiate the best deal on his own, but was reluctantly willing to give our firm “a shot”, with the understanding that our agreement could be terminated if the right office space solution was not found.

Results

The Nesbitt Group performed a thorough market survey of the Denver Tech Center and Southeast Denver office markets, and provided the Monroe Group with suitable options that met all of their criteria. After an extensive search and an analysis of building alternatives, the Monroe Group decided to relocate to the Metropoint I building at 4600 S. Ulster in the Denver Tech Center. The Nesbitt Group identified a location that met the needs of the Monroe Group while improving their corporate image. In addition, The Nesbitt Group negotiated aggressive terms and concessions with the Landlord’s agent to achieve a below market lease transaction.

Value Added

The Nesbitt Group negotiated an aggressive lease rate, free rent and significant tenant improvement allowance dollars for the Monroe Group. In total, we were able to achieve rent savings of approximately $40,561, as compared to the landlord’s initial lease proposal. In addition, we negotiated a tenant favorable load factor to be applied to the Monroe’s Group’s space that resulted in rent-able square footage being reduced by 356 square feet, while usable square footage remained the same.

“The Nesbitt Group did a tremendous job representing the Monroe Group on our office relocation. They were extremely detail oriented and very aggressive in their negotiation tactics. I would definitely use their firm again.” – Phil Haag, President, The Monroe Group Inc.