Stay-or-leave, site selection and lease negotiation new HQ for Proact
The management of Proact, a European leading IT company in data center and cloud services services with 800 employees in 15 countries, concluded that the current location was no longer optimally located from a business point of view. Freestone was appointed to guide them through the preparation of a business case and the search for a new location.
Proact Belgium has been housed since 2005 in the MP Center in Drongen where it had moved internally several times to accommodate the growth at that time. But the majority of the company's partners and customers were located in the Mechelen-Ghent-Brussels triangle, with the main focus towards Brussels. Moreover, a company based in Brussels or its outskirts is more credible as an international partner for its customers. Something that we can confirm from our own experience at Freestone and our customers.
Consequently, management wanted a first objective feasibility study, the so-called "stay-or-leave" study, to be carried out to investigate whether an alternative location in the Brussels periphery could be a budget-neutral option.
The current lease contract (433m²) from Proact in Drongen had a very close break option, so that our real estate experts got to work quickly.
PROJECT DATA SHEET
- Customer: Proact
- Project: Stay-or-leave and site selection
- Timing: 2017
- Location: Diegem - Brussels
- Size: 465m²
The result
A first high level business case based on market-based benchmarks from the Brussels real estate market in the preferred region of Proact immediately indicated that a relocation could be a more than valid option. An RFI and market exploration yielded a longlist and shortlist of potential properties that, after a thorough spatial, technical, financial and operational analysis and comparison, best met the needs of Proact.
In the end, the Park Lane business park in Diegem concluded as the best in the business case because of a good location, ready-to-install design, a high-quality and prestigious building, the future flexibility in the owner's spacious real estate portfolio and especially the favorably negotiated lease conditions. The final proposal with a reduced basic rental price and incentives turned out to be 13% cheaper than a new lease proposal from the current owner in Drongen, and this for 30 m² more space. Moreover, it met the business needs better, which was the starting point of the assignment.
Freestone's approach
- Constructing a vision with regard to future work environment
- SWOT analysis current work environment
- Stay-or-leave business case
- Creating RFI and market exploration of alternative locations
- Thorough comparison of the shortlist options and site selection
- Preparing argumentation and negotiation of rental conditions
- Drawing up a comprehensive lease agreement
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