It is fair to say that some at Applegate Group wanted to "escape" to a building with more a responsive landlord and management, while others viewed moving as a hassle.

Previously at renewal times, one of Applegate Group's partners had contacted the landlord and tried to hammer out the best possible lease rate without taking full advantage of the leverage potentially available from the outside market.

And expansions were generally handled via the "PacMan" approach with additional space taken on an "as is" basis whenever the need arose. The firm had no "flexibility" rights to expand, contract or terminate its lease. After several expansions in this manner, the firm occupied parts of two (2) floors and had become less than fully efficient in its total area and its productivity.

For growing companies, this is actually a fairly common situation. Business is good (and everyone's very busy) and so no one really takes enough time to focus on the profits lost due to facilities that are too big and/or not as productive as they should be in terms of communications and revenues.

MacLaurin Williams* was hired by Applegate Group to locate and to negotiate with suitable alternatives, including a potential renewal, remodel and expansion at their current building. We carefully surveyed and toured the market and then narrowed the outside options to two (2) buildings under construction. Simultaneously, we persuaded all three (3) candidates to pay for initial Space Planning to Applegate's choice of interior architect. The goal was to choose a space planner loyal to the Tenant and to produce reliable "Pricing Drawings" in order to get a firm grip on tenant improvement ("TI") costs.

The #1 preferred new building was The Pointe at Park Centre, which was further along in the construction process and able to meet Applegate Group's target occupancy date of February 1st. After pursuing a letter of intent at this building, we knew that the lease rates and TI package were still not as competitive as we could obtain at Plaza at Park Centre. But Plaza at Park Centre's construction was not nearly as far along, so we had major doubts that the February 1st occupancy date could be met.

Consequently, we negotiated a provision whereby the landlord of Plaza at Park Centre would pay for any increase in Applegate's holdover rent caused by delays in delivering the new space. Next, we negotiated a new letter of intent and achieved lower rental rates and a bigger TI package versus The Pointe at Park Centre. Furthermore, we obtained liberal rights to expand, contract and cancel the lease. Plus, Applegate received rights to faÞade signage facing the very busy West 120th Avenue corridor.

In the final analysis, when compared against a renewal, remodel and expansion at their older, lower quality and less well managed building, Applegate Group's long-term lease cost for a new Class A- building was successfully reduced 23%, or $506,400, by MacLaurin Williams*.

*due to company name change since this event occured alterations have been made in order to refrence MacLaurin Williams' current name.