- Address: 4800 T-Rex Ave. Suite 350, Boca Raton, FL 33431
- Square Feet: +/-11,130
- Lease Term: 126 months
- Tenant: Gubagoo, Inc
- Type: Tenant Representation Brokerage & Advisory Services
- Brokerage & Advisory Services: Equistone Partners
Gubagoo is an innovative technology company that focuses on interactive chat solutions for the automotive dealership industry.
Gubagoo had a substantial presence in Daytona Beach and a small office in South Florida, where a key executive lived. The principals wanted to establish a headquarters in the South Florida market for executives, company operations, and for the expansion of their sales and support teams.
Equistone Partners sought a headquarters building for the client that reflected the innovative culture of the company with a technological and forward-thinking focus. Employee retention was extremely important, as well as access to public transportation. Larger campus style projects were favored as Gubagoo had a tremendous growth rate and needed to ensure their expansion could be accommodated. Equally important was the space’s ability to have emergency back-up systems, so the company would still be operational during any interruption of electric or data services.
Options were considered in West Palm Beach and Fort Lauderdale, but the Boca Raton Innovation Campus (BRIC) checked all the key boxes and quickly shot to the top of the list. BRIC is a+/- 2,000,000 square foot complex in Boca Raton that draws power from two separate power plants, a requirement left behind by former tenant IBM. The space also has the potential to house a generator that can power 100% of the space, as an extra security measure. In addition to power backups and generator capacity, the building has access to multiple fiber optics providers. Onsite amenities include cafes, fitness centers, conference rooms and daycare facilities. The property is located directly adjacent to the Tri-Rail station for public transportation.
The rapid growth of the company was a challenge that required a creative solution. Gubagoo did not need the building’s 11,000 square feet of space on day one, instead they wanted to grow into it as they continued their rapid expansion. The shape of the unit would make it cost prohibitive to demise space less than 11,000 square feet. Equistone Partners orchestrated a creative solution that included a negotiated rent abatement. A sliding scale lease structure was introduced where the tenant paid rent based on 8,000 square feet for the first 12 months, 9,000 square feet for the next 12 months, and then 11,130 square feet starting on the 36th month through the remaining lease term. This gave Gubagoo the runway to expand into the space, in line with their trajectory of growth, without having to lease more space than they needed at the time. A right of first refusal expansion option on adjacent space was also negotiated to ensure Gubagoo would have the space they needed throughout their tenancy.
Equistone Partners was able to guide Gubagoo to a creative space solution and established a successful headquarters for the company in Boca Raton, FL. The space reflects the innovative culture of the company with amenities that are sure to help retain exceptional talent into the future. The redundancies and backup systems for IT technology, along with power generation services put Gubagoo in a confident position to service their client’s businesses.
Through the creatively structured lease that Equistone Partners negotiated, Gubagoo was able to minimize the carry costs associated with its projected evolution, while maximizing flexibility to expand in the future, as needed.