|CLIENT||Union Supply Group, Inc.|
Lease Rate & Expense Negotiation
|PROPERTY SIZE||146,000 SF Class “A” Cross-Dock Industrial Building|
McKinney Advisory Group has exclusively represented Union Supply Group (USG) for over 20 years, strategizing with them on how to optimize their real estate. McKinney Advisory Group assists USG nationwide in facility planning, site selection, and negotiation of contract language, lease rates, operating expenses, concessions, and government incentives. USG also benefits from our ongoing audits of expense invoices from landlords. This comprehensive approach assures that McKinney Advisory Group obtains for USG the maximum benefit from their real estate at the minimum expense possible.
Client needed near-term occupancy of Jacksonville warehouse and did not have time to wait for a build-to-suit. The client also needed the functionality of newer facilities such as cross-loading docks, high ceiling clear height, ESFR sprinklers, and heavy power. Due to other costs of expansion such as new equipment, racking, and inventory, it was important to limit up-front facility costs.
McKinney Advisory Group scoured the market, identifying 30 properties with potential. McKinney Advisory first previewed each property, narrowing the list to 9 potential locations. They conducted preliminary rounds of negotiation with all landlords, narrowed further to five.
USG previewed the 5 buildings with each potential landlord already in negotiation. McKinney then oversaw competitive bidding process with those five and narrowed to two finalists who met the space and financial requirements. With the final winning bidder, McKinney assisted in tenant improvement scope and layout, negotiated with the general contractor to reduce construction costs, and negotiated down the landlord’s operating expenses on line-by-line basis.
In conclusion, McKinney procured a transaction that met the needs of USG and exceeded cost saving expectations. USG received a new facility’s functionality at an older facility’s pricing. They also received one year of free rent all up front, lowered base rent, lowered operating expense costs, and negotiated a higher, turn-key tenant improvement package. McKinney Advisory Group maintains a relationship with USG, understanding their business as well as their needs in order to create cost savings solutions.