20,000 sq ft/Class A building in Anchorage’s Midtown market
The lease for TDX’s 15,103 sq ft building was to expire at the end of July 2017. They acquired the space over many years and through varied transactions to meet the needs of their workforce. Located near Dimond Center, the property was classified as a Class B building that needed renovation. The landlord failed to make promised repairs of the many issues in the building, and TDX wanted to explore all their options. TDX engaged SSS Commercial Real Estate of Anchorage in the second quarter of 2016 to renegotiate their existing lease or find a new space in a Class A building.
- Finding a Class A building with plenty of space (20,000+sq ft) on one floor or contiguous floors, and located in mid-town
- Must have a buyout for the current lease, below-market rates, and lots of meeting and internet capabilities
- Only a 3-year lease based on TDX’s existing airport property and their possible move there in 2-4 years.
We surveyed, toured, searched and negotiated with several landlords over many months, while the move-in date was moved closer. We found all the elements TDX was looking for at the Frontier Building, the ideal location (Shell’s old space). We secured a promise to buy out their existing lease, and obtained rates substantially below market value. Additionally, there was plenty of building, meeting facilities and internet capability via the landlord’s and Shell’s space/building improvements.
SSS was successful in negotiating a 49-month lease at below-market rates with a lump sum payment from the landlord, up front, to buy out their existing lease, complete TI, and a termination option that allows TDX to move if they so choose. The buyout saved TDX over $150,000 on their existing lease. The favorable rental rate saved them thousands of dollars each monthly. SSS helped in the TI process, whereby TDX’s space was built out to their specifications at a number that came in under budget, and in a minimal amount of time.