CHALLENGE

Redpath Mining, based in North Bay Ontario, is the global leader in mine shaft construction and the lease renewal for their global head office was less than two years out.  The challenge in obtaining a market renewal was two-fold: first, budgeting enough time to conduct a proper renewal process in a very small office market and, secondly, finding any viable relocation alternatives that would provide leverage for the negotiation.

SOLUTION

In order to ensure the tenant’s renewal strategy was not adversely affected by time and in light of the limited number of relocation options in such a small market, renewal discussions with the landlord were initiated 20 months prior to the tenant’s lease expiry.  This allowed CBRE to identify potential relocation alternatives based in large part on build options and this research established the basis for the renewal negotiation. 

RESULTS

Employing the luxury of time to backstop its negotiation Redpath was able to reduce its rent by approximately 16%, obtain a market-leading inducement allowance and obtain options to terminate.