Region: Metro-wide
Services Provided: Tenant Representation, Financial Analysis, Lease Negotiation, Economic Incentives, Labor Analytics
Size: 95,000 SF
CHALLENGE
-
Deluxe Corporation owned a two-building corporate campus in a suburban setting that had become functionally obsolete, inefficient and offered employees minimal amenities.
-
To attract/engage/retain employees, Deluxe knew a significant campus renovation would need to take place soon and would cost $20M+.
-
Deluxe, amid an entire corporate and real estate transformation, needed a long-term solution for creating dynamic headquarter space that mirrored its vision for the future.
SOLUTION
-
Newmark and Deluxe took an aggressive 3-pronged approach considering owning a campus, a long-term sale/leaseback, and selling the campus plus relocating to a more amenity-rich Twin Cities’ location.
-
Newmark, with full confidentiality, created market leverage in multiple Twin Cities’ submarkets with viable building landlords while also pushing prospective Deluxe campus buyers to maximum offer prices.
-
Newmark’s economic incentives team engaged the State of Minnesota to understand and negotiate available incentives.
-
Newmark’s labor analytics team evaluated the availability and costs of key jobs throughout the metro to compare Deluxe’s current location vs. alternative locations throughout the metro from a labor strength viewpoint.
RESULTS
-
Deluxe made the decision to sell its corporate campus and relocate its headquarters to the heart of the Minneapolis CBD into a building complex that would provide Deluxe access to top talent and countless employee amenities in the complex, skyway and nearby
-
Newmark negotiated significantly below-market rents plus extreme free rent and improvement allowance plus Deluxe building top signage, complex naming rights, and branding opportunities in all public facing common areas.
-
Deluxe received the largest economic incentive retention package in Minnesota state history.