Diverse stakeholders with varying priorities can indeed come together quickly for the right opportunity.
The Service Employees International Union (SEIU) wanted to save money by consolidating its Federal Way and Renton locations to a central, urban environment with better transit, but also needed to gain consensus from a diverse set of constituent groups – from window cleaners to nurses to security officers and more.
In addition, SEIU wanted to purchase a stand-alone building of an unusual size (about 50,000 SF), on a tight budget and time-frame, but needed to sell its existing facility first.
Kinzer conducted a thorough market survey from Seattle to SeaTac, and identified multiple options including two unique opportunities that were not actively on the market. The winning option met every need and made quick agreement among multiple stakeholders possible: a stand-alone downtown Seattle building with excellent branding opportunities on Third Avenue, phenomenal access to the bus tunnel, ferries, light rail, and I-5, and even an auditorium space perfect for SEIU’s large meetings.
To create timing flexibility in the disposition of SEIU’s existing space while meeting the move deadline, Kinzer negotiated a lease with an option to purchase with well-below-market terms and tenant improvements without any out-of-pocket costs. Kinzer also negotiated to keep all existing furniture and cabling, dramatically reducing the projected relocation costs.
Kinzer identified a downtown stand-alone location that met SEIU’s unusual space needs and negotiated 17% savings ($2.4M) in below market parking, free rent, rent savings, as well as a future purchase option which would allow SEIU to move immediately, but sell its existing locations to its best advantage.