VMETRO, Inc. was looking for a way to improve their operational efficiency and reduce costs immediately. The technology firm hired UGL Equis to analyze their operations and provide an immediate solution to reduce costs, in spite of more than 18 months remaining in VMETRO’s lease term and a high investment in technical improvements to their existing space.

UGL Equis’ analysis of the local submarket in showed that vacancy was approaching 30% and asking rents had dropped significantly. VMETRO’s current building was quoting an asking rental rate of $14 per square foot -- $6.00 below the rate VEMTRO, Inc. was paying at the time of the analysis.

UGL Equis took its efforts for VMETRO Inc. a step further, evaluating the current space plan and flow. It was determined that VMETRO, Inc. was occupying 20% more space than they needed. A new space plan was created that allowed VMETRO, Inc. to immediately reduce their space by 12%, without dramatically affecting their current operations or disturbing their technical infrastructure.

During negotiations with VMETRO’s landlord, UGL Equis provided detailed financial analysis showing how the economic impacted if VMETRO, Inc. were to move at the end term. These negotiations created “fear of loss” and forced the landlord’s hand to make a deal 12 months prior to VMETRO’s lease expiration.

UGL Equis achieved the following benefits for VMETRO, Inc. through its market analysis, space planning and strategic negotiations: (1) New 60-month lease one year prior to lease expiration. (2) Reduced total space required by 12% from 18,700 square feet to 16,225 square feet. (3) Negotiated a 28% rental rate reduction from $20.00 per square foot to $15.50 per square foot. (4) Negotiated for all up-front capital needed to reconfigure space to be provided by the landlord. (5) Achieved immediate cost reduction of 33%, which equated to approximately $120,000 of savings per year.