Savills Reduces Occupancy Costs and Wins Concessions for RSI with New Lease
Reimbursement Services Incorporated (RSI), a firm specializing in benefit outsourcing, occupied office space in the dense South Jersey market with limited expansion opportunities or occupancy alternatives. RSI’s steady growth was inhibited within its current landlord’s portfolio, as tight market conditions favored the landlord’s existing larger credit tenants.
Savills was retained by RSI to help develop a 10-year growth strategy for the firm’s space needs and find alternatives that would help enhance the firm’s overall image. Savills swiftly conducted an extensive review of all possible opportunities within the South Jersey marketplace in order to ensure the viability of any build-to-suit or purchase alternatives.
After evaluating all financial possibilities and creating the maximum possible leverage in the negotiations, the optimum solution proved to be a new lease in a newly constructed building at 501 Fellowship Road in Mt. Laurel, NJ to be delivered prior to RSI’s lease expiration. Savills and RSI created a flexible long-term strategy that addresses the firm’s growth projections and space needs.
By working with both the developer and RSI’s architect, Savills negotiated a turn-key delivery of the space, enabling RSI to hedge against increasing construction costs, ensure the integrity and quality of the design, and minimize RSI’s out-of-pocket costs. By negotiating market level expansions that included an amortized original tenant improvement allowance, RSI was promised the ability to grow within the new building with the same finish level as its initial suite, at the lowest possible cost.