THE CHALLENGE
Sagicor Life Insurance Company is a full-service life insurance company that operates in 22 countries Their Scottsdale location at the Galleria was nestled in the heart of old town Scottsdale where they occupied nearly 25,000 SF on the 3rd floor. The Landlord had acquired City approval to build a five story class A office adjacent to their building, however Sagicor had a clause in their lease that prevented the Landlord from blocking their view. With nearly 3 years remaining on their lease and City approval to build a new Class A office Sagicor was left with a decision to stay and re-negotiate their lease or relocate.
THE ACTION
Commercial Properties Inc. (CPI) was hired by Sagicor to evaluate their leasing options. As part of this assignment (CPI) conducted a study that addressed the economic, employee demographic, commute disturbance and financial impact to Sagicor on weighing the benefits vs the risk of staying or relocating. Once it was determined that relocating was in Sagicor’ s best interest Commercial Properties Inc. (CPI) narrowed a short-list of Class A properties for Sagicor to review. Commercial Properties Inc. (CPI) gathered a team of experts that included space planners and architects to accompany Sagicor on each site visit, other key stake holders from Sagicor were brought in on the site selections, and Proposals were drafted on select properties followed by negotiations.
THE RESULT
• CPI negotiated a substantial buy-out of their current lease.
• Within two weeks of site selection a lease was fully executed.
• CPI negotiated a new lease on a Class A 27,000 Square foot office under market rents.
• CPI negotiated $1,485,000 ($55.00 PSF) Tenant improvement allowance in addition to substantial rent abatement and other concessions that was a positive economic impact to Sagicor.
• City permits for the new construction and Tenant Improvements build-out were approved in a record time of 4 weeks.
• Tenant occupancy is scheduled for May 8, 2020.
“After being in our current space for nearly 20 years, an opportunity presented itself to relocate our Scottsdale office. Michael helped us each step of the way. He was able to analyze our current options, bring together a team of people that included architects and space planners and quickly find a shortlist of properties and draft proposals. Once our desired property was selected Michael was successful in negotiating key deal points that were important to us as a company. We are very pleased with the outcome and his efforts.”
– Michael Stricker – Chief Administrative Officer Sagicor Life Insurance Company
