Monday, June 6, 2011

Do Over Deal.

Thirty years in the commercial real estate business and I had never before had a “do over” deal. Sure I had plenty of lease negotiations fall apart but I never had a client move in and within days be asked to move out. I needed another item on my checklist.

In February I was contacted by a marketing company in need of a small office. The company was opening a number of small offices around the country to service two large customers. They had outgrown an executive suite space in Rockville and needed office space ASAP. Their wish list was pretty simple. Two executive offices, a reception area and a large conference room. The conference room had to accommodate two dozen salespeople that met twice a day.

Experience warned there would be three potential issues. The first issue was the need for more parking than a small office generally is allotted. Second issue would be office noise that could impact neighboring tenants. Third, there would be a limited amount of spaces that fit their needs that didn't need more than fresh paint and carpet.

The Property Expedition was short and yielded a clear winner. The property had plenty of on-site and street parking. The suite had recently been finished for a building owner that never moved in. The space had two offices and a short section of wall and a door could provide a third. During our meeting with the building owner, his broker and contractor we verified that my plan for the possible wall did not conflict with the vents, lights or sprinkler layouts. We also addressed the twice a day traffic that the space would experience during the sales meetings. The tenant liked that the large conference room did not share any walls with neighboring tenants. The landlord was impressed that the tenant assigned two salespeople to make sure the restrooms were neat and tidy after each meeting. The lease was executed on a Friday and management made an extra effort for the tenant to have access that Saturday.

A week later I get the call from the building’s broker saying that the tenant had to go. Why the short honeymoon? The answer – “smoking”. No, the tenant was not smoking in the building. The salespeople that did smoke would congregate by the Safety Butt Can outside the front door.



                        Now you know what that thing is called.

Their non-smoking friends would go outside to join them. At break time, the building appeared to be having a fire drill. The building was designed before the indoor smoking ban and the only place for the Safety Butt Can was outside the front door. The larger tenants complained about the crowds blocking the entrance and the landlord complained to his broker. The broker called me and pleaded to help them find another home. All rent and deposits would be returned. They begged for a “Do over."

Two months later my client moved into their new home. I found another space that met the program if a wall was removed and another added. The building had a previous tenant with a large sales team so the owner added a small covered smoking court behind the elevator lobby.

I have now added an item labeled “Safety Butt Can Location” to my Tenant Wish List. It can be found right after the item “Baby Changing Station also in Men’s Room.”