Leased Office Space
Global Manufacturer
Reimbursement for the full cost of the space in exchange for the company running media through ICON.
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THE CHALLENGE
A worldwide manufacturer of residential and commercial heating, cooling and ventilation systems faced an ironic challenge: more office space than it wanted to heat, cool or ventilate for itself within its corporate headquarters campus in Texas.
The company had entered into a long-term lease to obtain control of the space for future growth, which was occurring slower than anticipated. The company considered the obvious choice first – subleasing – to recover some of the excess overhead but found that the market price for real estate in the region had fallen significantly below what it was currently paying.
HOW ICON UNCOVERED VALUE
Corporate barter offered a creative solution: ICON provided a reimbursement for the full cost of the space, base rent plus all additional rent costs, in exchange for the company running media through ICON. Over the next 60 months, the company purchased media for several for the company’s product lines through ICON.
RESULTS
The transaction worked out so well that when it was completed, the company entered into a similar agreement for a flex/light manufacturing facility on the other side of the country.