Industrial Lease in Irvine, California
Lease and Purchase Negotiations
Work Space Optimization
|PROPERTY SIZE||121,000 SF Class “A” Flex|
|FINANCIAL BREAKDOWN||40% Savings over 5 Year Term|
McKinney Advisory Group was introduced to the US CEO of ASICS America in late 2013. At that time, the ASICS team was in the early stages of assessing the long term needs for the corporate headquarters of ASICS America. McKinney was hired by ASICS to assist with the identification and negotiation of their corporate headquarters. The team went to work assessing and providing market data to ASICS, allowing the company to make an educated and optimal decision.
ASICS United States corporate headquarters previously occupied a building consisting of approximately 60,000 square feet in Irvine, CA. They had been in the building for approximately six years, with a lease due to expire in 2016. As a result of successful branding, strategy and marketing, ASICS grew at an astounding pace and found that their current space could no longer accommodate their needs. Due to the remaining two year lease term McKinney was challenged with assessing how the balance of rent could be eliminated in order to allow flexibility for a new, larger location. Further, ASICS desire to remain in Orange County left a smaller set of potential options available to meet their expansion needs.
McKinney Advisory searched for flex buildings able to provide a “campus” feel and the flexibility to have a sports institute/active lifestyle component for employees and athletes representing the ASICS brand. McKinney also engaged the owner of ASICS current building, a prominent building owner in Orange County, to learn about options they may have to accommodate the long-term goals of ASICS. Ultimately, ASICS landlord was able to offer an alternative well-suited location to meet all of ASICS’ goals for a new site. McKinney was able to negotiate with this landlord to eliminate the remaining rent on the clients’ old lease term. McKinney negotiated a substantial tenant improvement allowance and a project management fee to be paid by the landlord. ASICS has been incredibly satisfied with the hands-on and forward-thinking approach McKinney has taken to their corporate real estate needs. McKinney continues to stay engaged in the planning of ASICS’ growth and landlord interface allowing ASICS to continue to do what they do best.