Background

 

MMW&R was faced with yet another interesting opportunity.  Its lease had over four years remaining yet, like many major law firms, MMWR’s space needs had changed.  Attorney/administrative ratios had changed, space usage had changed and technology had advanced.  In addition, the real estate market was becoming tight and the future options for large blocks of contiguous space were becoming very limited.  Fortunately, MMWR’s lease had an option to terminate early, which gave MMWR the opportunity to assess its real estate needs and the availabilities of office space in the marketplace.  Once again, the first assignment was to research the availabilities in the market and prepare comprehensive analyses of each potential option, including staying put, renegotiating the existing lease and rebuilding the existing space to meet MMWR’s new needs.  Once data was collected, the task was to present the findings in a manner such that the firm’s management committee could make an informed decision.

 

We consulted with MMW&R and, after advising them of their option to terminate early, MMW&R formed a Philadelphia Real Estate Committee to assess the opportunities.  As in the past, we explored alternatives which produced several relocation options.  Very early in the evaluation process we not only presented building options we also presented design team options, including participating in the interview and selection process.  As we continued, we oversaw the development of test fits and pricing notes, which we used to acquire detailed construction cost estimates of the various relocations options, as well as reconfiguration costs to stay in place. 

 

In assessing the options, it was found that the option to stay put would require extensive internal logistical movements to accommodate construction, which was anticipated and addressed.  However, given the amount of work the cost would be extensive and so to fund this option MMW&R would have to extend its lease.  One major concern with the existing space was the amount of underutilized space that, given the evolution of the law firm industry, had become costly to continue to lease.  In addition, during this process we found the current landlord would increase the rentable square footage figure of MMW&R’s lease so as to accommodate the landlord’s re-measurement  of the space, which would not increase the physical size of the property but only the amount used to calculate rent.  This redefinition of the size of the rentable square footage of the area increased further the size of the existing space, which we now factored into our analyses.

 

Throughout the process we met with the Philadelphia Real Estate Committee on a regularly scheduled basis, updating the Committee and firm as the process unfolded.

 

And once all data was accumulated and verified it was presented to the Management Committee, who voted to exercise the Early Termination Option of its existing lease so as to relocate to much more efficient and newly constructed space in a Class A+ office tower.

 

MMW&R worked with one architectural firm at first and another firm after it was clear a move would be imminent.  Remaining flexible and working to constantly achieve the firm’s goals and objectives was a huge endeavor as the evolutionary process developed.

 

Early in the process REIS assisted MMW&R in finding and retaining a Construction Manager, who began compiling construction budgets as the design process moved forward.  This enabled MMW&R to assess the cost impact of design options and to make design and budget decisions while the project was progressing.

 

One very key component that affects the design and cost of all major office build outs is furniture.  MMW&R’s existing furniture was outdated and did not meet the needs of today’s workplace and technical environment.  MMW&R therefore had to choose to design the new space around its old furniture or to purchase new, and costly, furniture that met today’s needs.  However, early in the process REIS identified a significant amount of existing and high end furniture that was already in place in the new space.  The former tenant was unable to utilize the furniture and so REIS seized upon the opportunity and early in lease discussions with the landlord, REIS negotiated into the lease the option for MMW&R to repurpose the existing furniture, at no additional lease cost.  REIS coordinated the inventory and refurbishment of this existing furniture and this process alone saved MMW&R significant money. 

 

The next critical step was the build out of over 67,000 rentable square feet of high end office space, and to do so within a tight time frame.  Given the complexity of the project, specialty contractors such as sound masking and audio-visual suppliers also had to be interviewed, evaluated and hired.  Throughout this process, and the entire construction process, REIS continued to support MMW&R by participating in all consultant interviews and by attending and actively participating in weekly construction meetings.  As the relocation date approached REIS became involved in the identification and selection of a move coordinator which allowed the relocation process to occur seamlessly over one single weekend.