Staples Saved $78 Million
Rent Reduction on Renewals, Flexibility in Length of Term, Right-Sizing Older Stores and Obtaining Future Renewal Options Results in Significant Savings
Staples, a nationwide office products retailer, sought an outside service provider to help achieve corporate objectives including reducing rent in renewal options, creating flexibility in length of term, right sizing older stores, obtaining future renewal options, and to be six months ahead of option notice dates.
SRS was engaged, acting as an extension of Staples’ real estate department, to negotiate the objectives outlined above on 40-60 assignments per year. A network of brokers (Staples’ and/or SRS’) across the nation to perform market analyses necessary to support property specific strategies and negotiations. SRS implemented individual lease reviews, strategy recommendations, process management and reporting in addition to site-specific landlord negotiations.
In 2015, SRS saved Staples over $6 million in rent, obtained $976K in TI allowance, and achieved term flexibility on 6 assigned deals for a grand total of 43 out of 51 successfully completed deals.
Since 2007, SRS has had an 80% success rate of negotiating option rent reductions averaging 18% or more resulting in excess of $78 million in occupancy costs savings. An untold amount of added value has been delivered to Staples through flexibility in lease terms and other operational efficiencies.
Services Provided
- Market analysis
- Property-specific strategies & negotiations
- Individual lease reviews, strategy recommendations, process management & reporting
- Site-specific landlord negotiations
Results
- 80% success rate of negotiating option rent reduction with an average 18% reduction rate.
- Excess of $78 million in occupancy costs saved
- Last year alone, saved $6 million & successfully achieved cost savings on 43 out of 51 assignments