Aggregation of Tenant Representation Lowers Fees by 40%
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Overview:
Awarding a single contract for tenant representation across an entire 6.5-million-square-foot portfolio to one full-service real estate firm lowered payment of professional fees by 40 percent for this Fortune 200 financial services company. The company also reduced its exposure by using Expense Management Solutions’ (EMS) industry-leading services agreement.
Client:
This client is one of the nation’s leading providers of health, dental, group life, disability and long-term care benefits.
Challenge:
This company hired EMS to strengthen the scope of work and reduce the fees associated with brokerage services for all transaction work across the portfolio, comprising more than 6.5 million square feet in over 150 locations across the U.S. As part of a larger assessment of this client’s corporate real estate operation, EMS identified an opportunity to substantially reduce the client’s exposure within its tenant representation contract.
Solution:
- Develop a comprehensive request for proposals encompassing portfolio strategy, transaction management, disposition of excess space and lease administration
- Prequalify firms and lead the detailed qualitative assessment of all proposals
- Conduct interview sessions with the bidders
- Analyze the financial impact of the resulting offers
Results:
- Awarded contract to one real estate firm to provide services across the entire portfolio
- Client’s work processes was refined
- Scope of work was strengthened
- A strategic partnership with the provider was created
- Reduced professional fees by 40 percent.
