|CLIENT||Ernest Packaging Solutions|
|SERVICES||Corporate Portfolio Management
|PROPERTY SIZE||47,320 SF Flex Warehouse|
|FINANCIAL BREAKDOWN||18% Cost Savings over 64 Months|
Ernest Packaging Solutions, a California based corporation, selected McKinney Advisory Group after continued success in overall cost savings to assist with their real estate needs in Portland, Oregon. Based on Ernest’s relationship with McKinney on transactions in Arizona, California, Idaho, Nevada, and Texas, Ernest entrusted McKinney to assist in the relocation of their facility in Portland. McKinney Advisory’s specialty with large portfolios helped us to understand the client’s growth objectives, business strategy, and other real estate overhead requirements. This allowed for a comprehensive approach to Ernest Packaging Solutions’ existing requirement in Portland.
Ernest Packaging needed assistance with relocating to another premise within a 5 mile radius of their current location, while simultaneously creating leverage in the market to attain and negotiate a competitive new lease term. Portland is a growing market, with competitive rates. The client’s main priorities were to reduce overhead, relocate to a new facility and get a rate below market. Further, the site chosen is on a ground lease with the Port of Portland, which raised several important factors regarding operations, control of space and the power of early lease termination. Lastly, time was a large factor in making sure Ernest could be in their new facility before the expiration of their current lease.
McKinney analyzed the client’s existing space, side-by-side, with similar locations within the market. McKinney performed extensive research of the industrial market, within a 5-mile radius to Ernest’s existing location, including off-market options. McKinney identified seven potential relocation properties. Leveraging the competition created from the proposed properties, McKinney was able to attain a competitive rate with a new facility. Further McKinney negotiated on behalf of the client to ensure the ground lease on the site would not disrupt business. Keeping in the timeline allotted, McKinney successfully moved Ernest into a new space at a lower rate than their previous location.