Objective: Office Space Consolidation Reflecting Brand & Culture
Challenge: Balancing Budget Constraints with Desirability and Construction
Risk
THE CLIENT’S SITUATION
A private equity-owned food manufacturing company was managing multiple office and manufacturing facilities scattered across the city. Their objective was to consolidate all office functions into one space that not only reflected their culture and brand but also promoted collaboration and operational efficiency. As a privately owned company, they were sensitive to economics but didn’t want to compromise on securing high-quality space.
THE CHALLENGES
The primary challenge was finding a location that aligned with the client’s budget and vision. Additionally, landlords in desirable areas were hesitant to take on the construction risk associated with building out the space to the client’s specifications. The client’s key goals were clear: they needed a space that fit their cultural aspirations, supported team collaboration, and was financially feasible, all while adhering to a tight budget functional workspaces.
OUR APPROACH
Rifle CRE took a strategic, data-driven approach. We developed a targeted list of potential on-market and off-market properties, evaluating each option against the client’s objectives. To ensure the ideal match, we used a heat map of employee commute times and assessed the attractiveness of different submarkets. This allowed us to narrow down options that aligned with both the client’s operational needs and budget constraints. After agreeing to terms with a preferred space, the client ultimately decided to kill the deal due to unforeseen concerns. Undeterred, we started the process over, presenting a follow- up option that better aligned with their evolving requirements.
OVERCOMING OBSTACLES
Negotiating the second deal required flexibility and persistence. Rifle CRE worked diligently to persuade the landlord to assume all construction risk, while structuring the most flexible deal possible for the client. Through extensive negotiations and creative dealmaking, we secured favorable terms, ensuring the client could achieve their goals without taking on additional construction costs.
A pivotal moment occurred when a more desirable portion of the floor became available during negotiations. This allowed us to shift the floor plan, providing the client with prime views of downtown and exclusive access to a balcony—an unexpected but highly valued addition to the new office environment.
THE RESULTS
The new office space achieved everything the client was aiming for. By consolidating their scattered offices into
one centralized location, the company saw significant improvements in team collaboration and company culture. The new space not only simplified their real estate management but also provided an attractive, functional environment that aligned with their brand. In the end, the client was thrilled with the outcome. They appreciated Rifle CRE’s collaborative process, full transparency on financial impacts, and the fact that there were no surprises. They gained complete visibility into the transaction, which gave them confidence that their deal compared favorably to market norms.
