16,000 SF Federal Way Office Lease Renewal for Tesoro
Tesoro Corporation · Federal Way, WA
Represented by Mike Hemphill, The Andover Company
- Requirement16,000 to 20,000 SF
- Start18 months before lease expiration
- ProposalsSix landlords plus the existing landlord
- Result16,000 SF renewal, below market, turnkey improvements
Challenge
After interviewing numerous brokerage firms, Tesoro Corporation, a publicly held oil products company, chose The Andover Company for a possible 16,000 to 20,000 SF office relocation in Federal Way, Washington.
Tesoro was growing but undecided about where the new jobs would go. Any move had to reduce facility costs, maintain a strong corporate image, and offer amenities for employees.
Strategy
Andover started 18 months before the lease expired and sent detailed requests for proposals to six landlords. The market was soft but expected to improve, so getting proposals early let Tesoro take advantage of the weak South King County office market.
At the same time, Andover worked with the existing landlord on a renewal proposal. Every option was compared on rental rate, turnkey improvements, and term, as well as image, amenities, commute times, and landlord quality.
Results
Tesoro renewed 16,000 SF at a below-market rate with turnkey improvements. The alternatives Andover developed gave Tesoro the leverage to renew on strong terms.
The job expansion eventually went to Austin, Texas, and Tesoro kept its existing space at a great rental rate.
Related services
Adapted from Mike Hemphill's Andover service brochure. Represented by Mike Hemphill of The Andover Company. Ben Hemphill now works alongside Mike Hemphill.
