Skip to content
Siemens
Relocation/Consolidation | Minnetonka, MN
Siemens and its various operating companies occupied multiple locations throughout the Twin Cities, many of which had leases expiring within one year of each other. Siemens established a corporate initiative to consolidate its operations in various markets if at all possible. The largest of the Siemens operating companies was leasing 280,000 square feet but only needed 160,000 square feet in a more efficient building. This requirement, in addition to the other divisions, resulted in an aggregate need of approximately 160,000 square feet. The assignment was to assist Siemens in reducing its real estate costs through a consolidation of its facilities.
APPROACH
- Several opportunities were identified, including build-to-suit development sites and existing facilities.
- Over a period of one year, the space programming process was managed along with determining the new facility performance specifications required for Siemens and their technological requirements.
- Evaluated multiple opportunities and provided high-level financial analysis.
RESULTS
- A building was identified that was available for sublease and a new lease was ultimately structured directly with the building owner.
- Through the consolidation, Siemens was able to reduce its local space needs from over 250,000 square feet to 160,000 square feet, thus saving several million dollars over the ten-year lease.
- Siemens was also able to obtain a $40 per square foot concession package to offset construction and moving costs along with furniture at no additional expense. Project management professionals managed tenant improvement projects and provided value engineering, thus reducing expenses.
