PANASONIC AVIONICS CORPORATION
Renton, WA
Corporate Headquarters Lease Renewal
Transaction Size: 100,000 Sq. Ft.
The Situation
Panasonic Avionics Corporation is the worldwide leader in manufacturing in-flight entertainment systems. The company was approaching its lease expiration at their 100,000 square foot Bothell corporate headquarters. Panasonic wanted to review its long-term facility needs and implement a new lease or lease renewal that provided the greatest economic benefit while improving the facility productivity. To facilitate these goals, Panasonic retained NAI-PSP's tenant representation team to spearhead a 15-month corporate facility strategy and action plan that culminated in its lease renewal negotiations.
Our Solution
NAI-PSP met the stated goals by negotiating a lease renewal that represented a 21% average annual cost reduction for Panasonic over the pre-renewal lease year. The transaction included an immediate fiscal year end $688,000 profit enhancement, with additional savings that averaged $300,000 in the remaining years of the lease. NAI-PSP also negotiated a $1,600,000 tenant improvement contribution from the Landlord to improve the corporate facility. NAI-PSP's total package of services included the design and implementation of the Panasonic facility strategic plan, a feasibility analysis of alternative site acquisitions, lease negotiations, and financial analysis of the resulting transaction.