Strategic Real Estate Solutions for Hanley Energy & Power Home Remodeling Group
Strategic Real Estate Solutions for Hanley Energy & Power Home Remodeling Group (Case Study)
Project
In 2022, Hanley Energy secured a lease for a 14,000 SF space at 6999 Huntley Road in Worthington, Ohio, to support their operations. However, after one year of occupancy, it became apparent that the space had an imbalance between warehouse and office space, prompting the need for a relocation to better suit their evolving requirements.
Approach
Challenges & Solutions
Hanley Energy tasked us in 2023 with subleasing their existing industrial unit at Huntley Road and finding a new location that aligned with their operational needs. The goal was to seamlessly transition them while maximizing value for all parties involved. We initiated a dual-pronged strategy:
• Subleasing the Huntley Road Space: After engaging multiple prospects for the property, we identified Power Home Remodeling Group (PHRG) as the ideal tenant. Their interest in securing a long-term lease, coupled with their financial stability, made them a suitable candidate for the space.
• Relocating Hanley Energy: We successfully relocated Hanley Energy to a smaller space in Dublin, Ohio, tailored to their operational requirements. This relocation optimized their business functions and delivered a perfect fit for their current needs.
Execution
The sublease negotiation involved three key stakeholders: Weston Inc., PHRG, and Hanley Energy. PHRG expressed a desire for a 10-year lease term. Considering their financial strength and long-term commitment, we engaged Weston Inc., the Cleveland-based landlord, to craft a mutually beneficial arrangement. Through strategic negotiations, we:
• Secured favorable terms for Weston, enhancing their property’s value with a stable tenant.
• Arranged a lease buyout for Hanley Energy, allowing them to transition smoothly to their new premises.
• Facilitated a win-win-win outcome that satisfied all stakeholders.
Results
Hanley Energy’s transition to their new location in Dublin, Ohio, perfectly suited their operations and enabled their growth. Meanwhile, PHRG established a strong foothold at 6999 Huntley Road through a long-term lease agreement that aligned with their objectives. Weston Inc. benefited from a valuable tenant relationship and optimized property utilization. This case highlights our ability to navigate complex negotiations and provide tailored solutions that drive value for landlords and tenants alike.
Matt and the Industrial Property Team were instrumental in helping us find the perfect space in the ideal location. Due to the remaining term of our current lease, we also needed to find a tenant to sublease our space. Not only did they successfully find a tenant, but they also negotiated directly with our landlord to arrange a lease buyout on our behalf. The Industrial Property Team maintained excellent communication throughout the entire process, clearly explaining each step along the way.
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