1450 E Greg St Sublease

Challenge

As a Sparks, NV business exiting the market and expanding into another facility in another region, it was faced with a sizable leased footprint and two years of remaining lease term. With its Sparks facility fully vacated, the tenant was contractually obligated to continue to make rent payments on the non-operational space. 

Action

With a reputation for having deep local relationships and an aggressive marketing process, DCG Industrial engaged to backfill the space and identify a subtenant to offset the ongoing lease payments.

During a general shift to slower leasing activity and increasing vacancy rates market-wide, the team knew that the typical marketing strategy of "set it and forget it" would not be effective in producing prospective tenants. 

By tapping into the team's network and relationships, they identified a past tenant client who held several separate leases in the market and was approaching a lease expiration in one of their facilities. The current landlord was sticking firmly to a cost-prohibitive renewal rate. 

Result

Following an extensive marketing process, DCG Industrial matched the past client with the sublease availability at 1450 E Greg St, providing two years at an attractive under-market rate while allowing them to vacate, consolidate, and expand the operations from two facilities to under one roof. 

By aligning the needs of both clients during a period of sharply rising vacancy and challenges filling vacant space, DCG’s efforts and strong relationships resulted in:

• Offsetting the ongoing rent payments for the vacating client.
• Providing the incoming client with an opportunity to consolidate and optimize operations at an attractive, below-market rent.