State-of-the-art quality space, flexible terms and exceptional branding don’t have to cost more.
When asked, “What’s most important – price, flexibility, quality or branding?” Omeros said “Yes.”
As a fast-growing life sciences company, the organization needed to upgrade to a state-of-the-art facility, but could not afford higher rent costs in the near term. Their lease expirations and the time needed for a highly specialized build-out required immediate decisions, but the firm’s growth projections were tied to future clinical trials. And finally, it was important for the organization to increase its visibility in the marketplace with a signage opportunity, but it wasn’t large enough to be a full-building tenant.
The first part of the solution was a nuanced “move versus stay” analysis which established cost parameters and space requirements under a variety of future clinical trial results scenarios. The model had to take into account the cost of moving to a better facility, which would increase productivity and accommodate growth, versus staying in two locations, which was initially assumed to be cheaper.
With sophisticated projections in-hand, Kinzer was able to sell landlords on the bright future of Omeros, and to negotiate significant space pockets, free rent, sublease and expansion options, a cash allowance to cover build-out costs, and the building naming rights that a tenant three times the size of Omeros would hope to receive.
- A new, waterfront location, with lab and office space redesigned to ideal parameters, at a lower near term cost.
- $20 million in rent savings and TI allowances.
- 15% gains in productivity due to better space design.