-
Challenges
Animal Supply Company is the nation’s leading pet food and supplies distributor. The company, as part of their continued growth objectives, acquired another pet food company who had an existing location in Southern California. Animal Supply Company also had an existing location in Commerce and following the acquisition, desired to consolidate the two operations and expand into a larger facility to accommodate their growing customer base.
Animal Supply Company had a narrow window of time to identify and negotiate a suitable facility prior to entering into the company’s busy season. They also desired to relocate to a new facility that provided a 30-foot clear warehouse, secure yard, ESFR sprinkler system and the ability to expand without disrupting their operations. The building also needed to be “food grade” and provide power that is suitable for future cold storage needs.
-
Solutions
Over the course of four weeks, the team identified multiple options within the desired geography including buildings that were still occupied by tenants. Our team assisted Animal Supply Company in analyzing efficiencies within the select options while simultaneously negotiating to ensure we met specific occupancy requirements. After fully negotiating on two of the preferred locations, we were able to leverage our client’s tenancy on the larger of the two buildings to achieve economics that were equal to a building that provided 25,000 square feet less space. We also secured the preferred location even though two other tenants were in negotiations with the landlord..
Results
In a market that has experienced tremendous rent growth and positive absorption, we were able to achieve an economic package that included multiple months of rent abatement, a landlord-funded tenant improvement allowance that exceeded our clients entry costs, a rent structure that was 20% below market and the ability to access the building prior to lease commencement to install material handling equipment in order to be operational immediately upon lease commencement. We were able to identify, negotiate and execute a lease within two weeks of touring the building.