A COVID-timed relocation that moved a 40-person architecture firm into Class A space, with the buildout on the landlord.
In 2020, Victory CRE represented LWPB Architecture, now LDG, in moving its 40-person firm into 12,362 SF of Class A office space at IBC Center in Oklahoma City, with three months of free rent and a landlord-funded buildout.
By Tom H. Vaught, SIOR ·
I'd known Craig Foster for years. LWPB's main office sat on the top floor of a nice building on Northwest Expressway, comfortable, but not necessarily the best deal or the best fit going forward. When COVID softened the office market, I saw a window to move them into something better, with more room, for only a slight increase in rent. They weren't out looking. I brought them the opportunity.
Spot the window and bring it to them.
This is what an outsourced real estate director does: watch the market on your behalf, even when you're heads-down running your business. COVID reset the office market in the tenant's favor. Rather than wait for LWPB to come looking, I brought them a thesis: there's a better building and a better deal available right now.
Present two genuinely good options, including a purchase.
I gave the firm a real, informed choice. Option one: buy a floor of the newly renovated building at 6525 N Meridian for just $37/SF, a remarkable value play. Option two: a Class A lease at IBC Center on Northwest Expressway with an aggressive tenant-improvement package. Both were strong. The firm chose the lease.
Land the lease, with a landlord-funded buildout.
We secured Suite 840 on the 8th floor of IBC Center: 12,362 SF of Class A space, with three months of free rent and a $432,670 landlord-funded buildout, on a long-term lease starting at $21.00/SF. The firm used its own GC, the landlord funded a nearly turnkey buildout, and the firm modernized without the capital hit that usually comes with it.
Build consensus and deliver.
An architecture firm is full of people who design space for a living, and this decision had multiple partners weighing in. Direct, no-nonsense communication kept everyone aligned and got the firm to yes. The result: a better building, an easier commute, a stronger recruiting story, less maintenance, and an all-around more enjoyable place to work. According to the building's leasing agents, it's the nicest space in the building. LWPB was acquired during the transition and has since expanded again as LDG.
"Tom is very thorough and left no stone unturned. He found a Class A space that fit us perfectly, negotiated a lot of free rent, and helped us modernize without much increase in rent. His no-nonsense direct communication helped us build consensus among multiple stakeholders. This process would have been very difficult if it were not for an expert like Tom."
The value was seeing that COVID had opened a once-in-a-cycle window, bringing it to them before they asked, and structuring the upgrade so the landlord funded the buildout and the rent rose only slightly. That's what watching the market on your behalf looks like.Tom H. Vaught, SIOR · Victory CRE
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