Outsourcing Site Selection & Lease Negotiations

The situation: Our client, a major retailer, wanted to open a minimum of eight stores in two western U.S. markets.

The issue: The client needed to accomplish this goal in just 12 months in order to meet expansion objectives promised to shareholders and to avert possible market domination by a major competitor. But 12 months is a very tight time frame considering the additional lead time needed to secure a chain real estate professional who has the appropriate background and experience necessary to locate and acquire good retail sites.

The problem: The client had only one in-house real estate executive who had minimal support staff. This employee was already committed to meeting company real estate objectives in existing markets and thus had little or no time to devote to this crucial project.

The solution: DeForest & Company assigned an experienced real estate professional to the project, one who had detailed knowledge of the territory, and also had key broker and developer contacts. In the span of 12 months, this veteran accomplished the following:

• Located prime sites that fit the parameters set forth by the client.
• Consummated 10 transactions.
• Negotiated extremely favorable agreements.
• Worked with attorneys and construction personnel to document contracts.

The client subsequently opened the stores and met the company’s objectives.