Project Outline
Johnson and Johnson (J&J) engaged Stockton to review the suburban Philadelphia marketplace in conjunction with a 45,000 square foot lease requirement. With multiple affiliate locations in the region, the Company needed to determine what made the most sense for their long-term strategy; to either remain in its existing surplus affiliate space or to capitalize on softened market conditions and lease space directly.
Stockton worked in partnership with the corporate regional real estate executive of J&J to investigate market conditions and comparable lease transactions. The detailed ground-level information that Stockton uncovered, along with extensive financial analyses of all options, enabled J&J to move forward with the most economically viable alternative.
Services Provided
- Conducted client and ownership objectives analysis
- Conducted a current needs analysis
- Conducted a market survey
- Conducted a space planning analysis and provided construction pricing
- Produced a request for proposal
- Performed a financial analysis – relocate versus new
- Conducted lease negotiations
How Stockton Added Value
Stockton identified a new location with the ability to re-use a significant amount of existing conditions. With a need for short-term flexibility, Stockton negotiated a below-market lease rate with fixed renewal options. Understanding the present building ownership’s needs enabled Stockton to creatively structure a transaction that fulfilled the needs of all parties. J&J was able to lock into an aggressive rental rate for the initial and extended term and building ownership was able to stabilize the asset with the additional lease-up of 45,000 square feet.