NATIONAL FEDERATION OF COMMUNITY DEVELOPMENT CREDIT UNIONS
National Federation of Community Development Credit Unions (“Federation”), a nonprofit, was based at 39 Broadway in the Manhattan Financial District. Federation needed to expand its footprint to accommodate its continuing growth even though their lease had four years remaining on its term. InterRelate Group (“InterRelate”) was engaged to find a solution.
Course of Action
In the course of our evaluation of the Federation’s lease document and current space usage we found that the layout of their space was inefficient. We advised that a new, more efficient layout would yield a gain of usable space, resulting in a more cost-effective solution than subleasing their space and relocating to a new location. Given that a renovation was the best alternative, we negotiated a lease restructuring that included an extension of the term at today’s market rates, thus providing protection from a rising office market.
There were several key factors that led to Federation’s decision: a renovation and early extension saved Federation from a costly sublease process as well as the capital expenditures required to relocate. Secondly, by not having to expand its footprint, Federation was able to preserve its current rent expenditures while being protected from a rising office market.
InterRelate’s extensive experience and creativity allowed Federation to remain in its headquarters while lowering its long-term occupancy costs.