Case Study Consumer Credit Counseling Service of San Francisco
Mihalovich Partners represented Consumer Credit Counseling Service of San Francisco in their relocation to 595 Market Street.
When Consumer Credit Counseling Service of San Francisco (CCCS) originally contacted us they were not in the best place, literally. They were in an inefficiently planned Class B space with myriad serious issues with property management, systems and security. They had initially relocated to their space abruptly during the Dot-com, with few options or leverage and were paying upwards of $60/sf per year. In spite of the shortcomings of their building, their business was growing.
CCCS were unsure whether and how to renew and expand or relocate nor were they sure how to approach either option. In an ideal world they would relocate to a Class A building with modern HVAC; better services and building management; and new improvements. However, Class A options appeared out of financial reach, especially considering the costs for new tenant improvements, architectural fees and moving expenses. CCCS feared that they might be compelled to renew.
As in any simultaneous negotiation with several landlords, it only takes one highly motivated owner to create an opportunistic landscape for our negotiations—and the most welcoming and accommodating landlord at the time was Tishman Speyer, at 595 Market. The two floors we targeted had been on the market for quite a while….so long, in fact, that Tishman Speyer began spending speculative dollars improving the previously-occupied space with many perks, including:
- An equipment room housing over $60,000 worth of equipment;
- New ceiling system with grid, lights and sprinklers in place; and
- Finished internal stairs connecting both floors.
In addition CCCS was offered ongoing first usage rights of the building’s conference center.
Tishman Speyer was very aggressive and offered CCCS a seven-year lease with options to renew and paid for 100% of their tenant improvements, design fees and relocation costs. Overall, CCCS’s total occupancy costs to relocate were substantially less than their costs would have been if they’d opted to renew in their current Class B space.
The Bottom Line
Imagine being paid to build out and relocate to your ideal space…For CCCS dreams did come true. Read what CCCS has to say about our work.