Data Foundry owned and occupied its own 13,000-square-foot office building in southwest Austin for over 10 years, but by 2015 it was beginning to outgrow the space.
Because a satellite office was not an option (it was crucial that all employees office under the same roof), AQUILA began scouring the market for a new office space that would accommodate the entire company.
Through a thorough market survey process that included calling numerous brokers to uncover options that were not yet on the market, a number of potential options were identified, including an interesting sublease opportunity at Rollingwood Center.
In 2014, EZCorp preleased nearly all of Rollingwood Center, Building I, a 115,000-square-foot Class A office development on a long sought-after property just outside of downtown.
By 2015, however, due to changes in the company’s business structure, the space was no longer needed.
Interior build-outs were halted midway, and roughly 100,000 square feet was put on the market for sublease.
AQUILA was one of the first to hear about the Rollingwood sublease and immediately brought the project to Data Foundry’s attention. In fact, Data Foundry was the first prospective tenant to tour the space.
Once the space was determined to be the best solution for Data Foundry, AQUILA got to work negotiating terms for the sublease.
Caption: View of Downtown Austin from Rollingwood Center
Because they were the first to capitalize on this unique sublease opportunity, Data Foundry was able to have its pick of space within the building.
Data Foundry took the entire top floor of the building, 38,000 square feet, and, in doing so, nearly tripled its footprint in Austin.
By leveraging EZCorp’s urgent need to sublease, AQUILA was able to negotiate the following highly favorable terms for Data Foundry:
- Below market rental rates
- A term shorter than the full life of EZCorp’s lease with the landlord and shorter than what would be typically obtainable through a direct lease
- Renewal rights to extend the term through the extent of EZCorp’s lease
- More than six months of gross free rent, despite a highly competitive market in which landlords were not typically giving any free rent
- A substantial tenant improvement allowance to complete the build-out of the space to their own specifications
- Sub-subletting rights, a rarity in the Austin market
- Additionally, AQUILA negotiated directly with the landlord to obtain an offer for building signage, almost an unheard-of concession for a sub-tenant
Because Data Foundry was the first mover on the sublease, the terms AQUILA was able to secure are far more favorable than any other sublease subsequently executed in the building.
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