The Park - 3M
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The Challenge

3M has chosen Cushman & Wakefield as its advisor for the renegotiation of the existing lease agreement associated with the expansion of office space or relocation to another office project in Prague 4. 3M was quite satisfied in the existing building, The Park, where they occupied approximately 2000 m2, However, there was a requirement for cost optimization, expansion of offices and showroom with client centre and in case of relocation to join the office and the client centre into one building. 3M had two leases, one of which was coming to the end, but the other, for very complicated client centre (450 m2), should end a year later. In the financial models it was also necessary to calculate with relatively high value of assets. 

The Solution

Cushman & Wakefield evaluated all options for relocation, but from the outset it was clear that the requirements for customer center will be limiting for most buildings. Into the final round was only one alternative selected. Despite the extremely high cost for the option of relocating we were negotiating the best possible lease terms on the selected and the existing building to the very end of the process. Thanks to a well chosen strategy we have achieved that the relocation was more cost-effective from the long-term perspective. Finally there was a corporate decision to stay in The Park. Our colleagues from Project Management were also involved in the entire process and they participated in the detailed planning and adherence to budget. 

The Results

We managed to achieve considerable savings on rent and also negotiate a fit out contribution with the landlord to improve existing space plus to minimize the cost of the office and client center expansion. Above the rent we negotiated reduction of rent in advance before the end of the original lease contracts expiration (savings already 14 months in advance). Apart from the economic point of view, we aligned the end of lease contracts in favor of the client.