MCI

MCI

The MCi team engaged Tenant CS to undertake a stay vs. go project to assess whether it was more attractive to stay in their current premises or relocate.

Client Overview

No. of projects:
Multiple Projects
Single Project
Size:
300-500 sqm
Locations:
Sydney, Brisbane
Location:
Sydney, Brisbane
Industry:
Marketing & Events
Project Type:
Stay vs. Go, Office Relocation
Project Types:
Stay vs. Go, Office Relocation
About the company
MCI Australia is an award-winning marketing & engagement agency with an acclaimed industry reputation and a proven track record. They bring a global toolbox of innovative, creative solutions to meet their client's business challenges and engage with their target audiences.
MCI

Featured Project

At a glance

30% gross incentive on lease renewal
Reduced make good requirements
Retention of existing bank guarantee

The Brief

At a crossroads and uncertain about whether to stay in their current premises or relocate to a new space, MCi engaged Tenant CS to undertake a stay vs go project to determine the best strategy.

With specific criteria in mind, including an open-plan layout, creative fit-out, abundant natural light, multiple meeting rooms, and spacious kitchen breakout areas, the team scoured the CBD and city fringe markets to source 400-500 sqm options that would meet MCi's requirements and promote team unity.

The Results

Our engagement and the leverage created through sourcing suitable relocation options sent a powerful message to MCi's existing landlord - they meant business. This encouraged their existing landlord to come to the table and provide competitive terms for renewal.

Recognising the importance of flexibility in the current economic climate, Tenant CS secured a 3-year lease with a 2-year option, allowing MCi to reassess its requirements after the initial term.

Tenant CS also successfully negotiated: 

  • An effective market rent review on the exercise of the option, which would take into account market incentives
  • A 30% gross incentive with the opportunity for MCi to take a portion of this as a landlord contribution towards tenant improvements
  • A reduced make good requirement for the initial term and no make good obligations should MCi exercise their option 
  • That the existing bank guarantee (reflective of the initial lower face rent) would remain in place, avoiding any increase in the bank guarantee requirement on the newly agreed lease terms.

MCI

Project Team

Project Team

Project Team

'Engaging Tenant CS was a game changer'

Engaging Tenant CS was a game-changer for us. Their expertise and diligent market search created the leverage we needed to renew on competitive terms. The team skillfully negotiated a 3-year lease with a flexible 2-year option. They also generated significant savings, reduced our make good obligations and retained our initial bank guarantee terms. We are grateful for their support and highly recommend them to any business with an upcoming real estate project.
Nick Millis
Managing Director - Corporate, MCi

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