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OMD Philippines: Keeping Its Office Space Closer To HQ
01 THE CHALLENGE
OMD Philippines’ lease contract with Regus was about to expire on December 30, 2018.
For the next steps, the company had these options and conditions in mind:
- If it would relocate, it should get the same rate as its current contract
- If it would keep its office in Regus, it should not pay any price increase and renewal fees
However, Regus' landlord was keen to revert the rates to market standard with a 3% increase — a total of 17% increase from OMD's current rent.
To help it decide whether to renew or move, OMD engaged Cushman & Wakefield to:
- Find available spaces where it can relocate
- Check ongoing rates for a similar setup with its current office
- Negotiate with landlords
02 THE SOLUTION
We presented other serviced office providers to OMD. However, the company was not satisfied with the sizes and setup of the offices.
OMD then decided to keep the current office since its size was bigger than the other options, and it's closer to the main office. For this, Cushman & Wakefield proposed renewal strategies, including cutting the current contract and acquiring a new lease to get better results.
OMD then decided to keep the current office since its size was bigger than the other options, and it's closer to the main office. For this, Cushman & Wakefield proposed renewal strategies, including cutting the current contract and acquiring a new lease to get better results.
03 THE RESULT
OMD decided to end the lease and acquire new terms for the same space. Upon closing this deal, OMD enjoyed 7% annual savings from the landlord's initial renewal offer.
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