Allergy Partners
Raleigh, North Carolina
TRANSACTION VALUE
$522K
TRANSACTION TYPE
Lease
PARTY REPRESENTED
Tenant
SIZE
7,162 sf
Creative solution to growing pains
Avison Young used a creative solution to secure a lease space to accommodate their expansion requirements with over $500,000 in savings to the tenant.
Challenge
Allergy Partners, a multi-state medical practice, was so successful after entering the Raleigh market in 2008 that it needed to expand its office size significantly in order to efficiently process its patients and expand its market share. Ultimately, the practice needed to double the size of its 3,000 sf suite with four years remaining on its initial lease and felt it imprudent to take the risk of paying double rent.
Action
To minimize inconvenience and confusion for Allergy Partners’ patients, the Avison Young team concentrated on identifying properties as close as possible to the practice’s initial location. Our team worked with the sublandlord’s broker of a 9,874 sf suite located two doors down to divide the suite in a manner that accommodated Allergy Partners’ growth needs and operational flow and left a separate suite with a leasable configuration for the sublandlord. Additionally, Avison Young negotiated for Allergy Partners to have Right of First Offer on the remainder of the suite and for Allergy Partners’ rent to be reduced by the amount of rent owed on their original suite until that suite could be subleased.
Results
Our team secured a space that was sized to accommodate the tenant’s expansion requirements 3½ years prior to lease expiration and eliminated the risk of paying double rent for 3½ years which would have cost an additional $368,000. We negotiated a lease rate up to $6.00 psf lower than market, achieving an additional savings of $186,000 over the lease term.
Janet was instrumental in providing us with recommendations that helped limit our overall expenses and potential liabilities. She has my highest recommendation.
ADDITIONAL EXPERIENCE
Cary Medical Pavilion
Transaction Type: Investment sale
66,928 sf | Two multi‐tenant medical office buildings for sold for $8.9M to a regional investor for a partnership of local physicians.
Macon Pond Road
Transaction type: Investment sale
4.32 acres | Owners sought guidance on how to position and market the property to maximize sale proceeds.
205 Frasier Street
Transaction type: Sale-leaseback
15,542 sf | Facilitated sale‐leaseback of their Durham location on behalf of a physician's group to a 1031 exchange investor.
Smile Design
Transaction type: Lease
3,642 sf | On behalf of landlord, Avison Young secured an established, strong credit tenant who committed to a 10-year lease with no down time.
