106,000 SF Headquarters Relocation to Auburn for Zones, Inc.
Zones, Inc. · Auburn, WA
Represented by Mike Hemphill, The Andover Company
- BeforeSeven-story Renton building, staff spread over many floors
- RequirementAbout 110,000 SF
- OptionsSix reviewed, three finalists including a renewal
- ResultBelow-market 106,000 SF lease, over $1 million a year saved
Challenge
Zones, Inc. had its corporate headquarters in a seven-story office building in Renton. Space efficiency was poor, and with employees spread across many floors, internal communication suffered. The landlord was not inclined to compete on a renewal, even in a soft market.
The goal was a quality location with similar employee amenities at a substantially lower lease cost.
Strategy
Andover brought in a team of experts to clarify and rank the criteria for the next location: an architect and space planner, a construction consultant, a data systems consultant, and an attorney to review the final lease.
Once the need was set at about 110,000 SF, Andover assembled six facility options and scored them on rental rate, floor plan efficiency, and operating cost history, along with image, employee amenities, commute times, and the quality of the landlord and property management. The top three, including a renewal in place, then competed for Zones' tenancy through negotiations that ran most of a year.
Results
Zones chose a two-story suburban office building with 75,000 SF floor plates and signed a below-market lease with Boeing for 106,000 SF in Auburn. The move was projected to save more than $1 million a year in facility costs while keeping a strong corporate image.
More people on each floor improved communication, the site handles Zones' heavy parking needs, and it gives the company's data room a higher level of security.
Related services
More on the Auburn industrial and office market.
Related case study: 266,000 SF Auburn Office Lease-Up at Auburn Corporate Center.
Adapted from Mike Hemphill's Andover service brochure. Represented by Mike Hemphill of The Andover Company. Ben Hemphill now works alongside Mike Hemphill.
