Philadelphia-based Nonprofit Organization
Property
Nonprofit HQ & Industrial Facility
Services Provided:
Portfolio Management and Comprehensive Leasing Services
Client
Philadelphia-based Nonprofit Organization
Transaction Size
West Midtown
Transaction Completion Date
West Midtown
Project Led By
Blueprint Commercial
Situation
When we were engaged, the nonprofit was occupying 18,000 square feet at their HQ building for their C-suite, financial, and programming operations. An additional 12,000 square feet was vacant, and 12,000 square feet were leased to other tenants in the same building. Multiple of the tenants occupying the 12,000 square feet leased were up for renewal within the first three years of our engagement with the nonprofit. Additionally, within a flex/industrial facility owned by the nonprofit, their plant/operations team occupied 22,500 square feet.
Actions
HQ Building:
HQ Space Optimization for Nonprofit Office: Reduced the footprint of the space occupied by the nonprofit in the HQ building by 66% (down to 6,000 square feet), resulting in significant cost savings. The office space was not being utilized effectively, enabling us to assist in reducing the footprint.
Leasing Strategy for Remainder of Downsized Nonprofit Space: Successfully leased the 12,000 square feet of reduced HQ space to new tenants at above-market rents.
Lease Renewals: Assisted with successfully negotiating multiple lease renewals to retain tenants during a challenging leasing period post-Covid.
Secured a Credit Nonprofit Tenant: Successfully secured another credit nonprofit organization to lease part of the downsized space. This tenant provides much-needed services to the community, enhancing both the social impact and the community focus of the building.
New Governmental Tenant: Identified and negotiated with a credit governmental agency to occupy the ground floor of the building with a creative lease structure that allowed them to test the space before committing to a 10-year lease. This move brought stability to the neighborhood, a key goal of the nonprofit.
Flex/Industrial Facility:
Relocation: Assisted with relocating the plant/operations facility to another nearby property, which right-sized their space needs and reduced the footprint by 65%.
Leasing Strategy: Assisted with procuring a credit tenant for the 22,500 square foot facility.
Results
Cost Savings: Achieved significant cost savings from space reduction at both the HQ Building and flex/industrial facility by right-sizing the nonprofit’s occupied space at both facilities.
Increased Unrestricted Revenue: Generated additional unrestricted revenue for the nonprofit from leasing out reduced and vacant space at above-market rates. This will allow the nonprofit to utilize this revenue to fund their programs and cover additional costs that they would not have had funding for otherwise.
Tenant Stability: Enhanced tenant stability and satisfaction through strategic new leases and lease renewals and the introduction of a stable government tenant.
Revenue and Expense Impact:
Lease Value Generated: +$8,000,000 over the next 10 years for the client
Annual Revenue Increase: +$750,000 from new leases and renewal agreements for the client
Projected Cost Savings: $1,250,000 over the next ten years from optimized space utilization by the client and expense reconciliations
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