FLOW INTERNATIONAL
Kent, WA
Tenant Representation
Transaction Size: 140,000 Sq. Ft.
Transaction Value: $11,195,000
The Situation
Flow International, a prominent manufacturing company who's headquarters are in Kent, Washington, was approaching the end of a 10 year lease. Since their initial transaction in 1992, the market had dramatically changed. There was not a lot of vacant manufacturing space and build-to-suit opportunities were scarce. They needed to evaluate facility alternatives, from build-to-suit properties, existing vacant facilities, or to renew their current lease.
Our Solution
NAI Puget Sound Properties first completed an extensive analysis of their current facility, taking into consideration reproduction costs for heavy power, crane set up, increased water capacity, above standard floor loads, lighting upgrades, etc. Through our knowledge of development costs, and with the assistance of our team of consultants, we first defined the cost to reproduce Flow's special needs. This enabled Flow to look at the market with an educated eye. Taking into consideration labor costs, multiple facility consolidation, site surveys, rent analysis, state and county incentives, and logistical infrastructure, our comprehensive analysis showed that it was in Flow's best interest to renew their lease. The entire process lasted 18 months. Through our involvement and leveraged negotiations with the Flow's current Landlord, we were able to save our client $1,360,198, or a 14.8% reduction in facility costs.