The Matsco Companies, a division of Greater Bay Bank, initiated programs to reduce costs across the board to achieve higher profitability. Matsco had to scrutinize their operating leases and other capital expenditures in an effort to gain efficiencies.
Matsco engaged Equistone Partners to assist in developing various strategies. We educated Matsco as to the current market conditions and performed a detailed analysis to determine negotiating leverage and relocation feasibility. He convinced Matsco’s landlord that a lease restructure strategy was critical to keep Matsco as a long-term tenant.
In exchange for four new years of lease term, Matsco’s rent was substantially reduced over the remaining 21 months of the lease. Additionally, Matsco’s base year was reset, parking charges were set to market and a tenant improvement allowance was secured.
The total cost savings to Matsco was estimated to be in the $500,000 range over the original remaining lease term of approximately 21 months.
"I wanted to take the time to thank you for the outstanding service you provided us recently with our lease renewal in Emeryville. Your negotiation and market expertise proved to be instrumental in helping Matsco realize cost savings over the next two years. I appreciate your attention to detail, accessibility, and professional approach to our business, and I would be pleased to recommend your services to prospective clients."