Case Study: Persistance Pays Off
Challenge:
Arizona Thin Films applies optical coatings to surfaces such as glass to change its optical properties. Its founder worked for a similar company, and launched his own firm after he saw an opportunity. He discovered a need for better responsiveness for this service in what’s known as the state’s Optics Valley, centered in Tucson, and the rest of the western U.S.
Finding the right Tucson industrial space was difficult at first. Early searches failed to identify an available site that met the company’s space and immense power requirements.
Response:
Commercial Real Estate Group of Tucson helped the company search for Tucson industrial space that was larger than what the company needed, but that provided the right level of power. Negotiations on one potential site fell through when the proposed provisions were too costly for the client.
Undeterred, CREG Tucson did a further search and identified a newly available space that was the right size and with the right power levels. CREG Tucson
- confirmed with electrical engineers that access to the power was available
- determined that the other tenants in the business park where the Tucson industrial space was located did not use all of the power available to the park, allowing the business to use that excess power
- negotiated a lease with the landlord.
Results:
The building landlord reimbursed Arizona Thin Films for its cost to upgrade the building so that it could use the power it needed.
Even in a landlord’s market, CREG Tucson was able to win for the company a period of free rent. The firm also was able to get early access to the building.
Take-aways:
- Know what you need in Tucson industrial space. This gives you a good basis for comparing sites.
- Be willing to consider other options if your first choice isn’t available.
- Always keep looking, even while you’re in lease negotiations. That way you can line up options in case negotiations fail.
- Use a commercial real estate tenant representative who has deep knowledge of the market. That commercial property broker will have the connections and insight to know when space becomes available, even before it hits the market.
Contact CREG Tucson for details of this case study and how the strategies could work for your business, or call us at 520-299-3400.