CASE STUDY
CHALLENGE
To evaluate the merits of renewing and reconfiguring a 150,000 SF Yum Brands’
operations facility in Louisville, Kentucky versus relocating the operation to an existing
building or build to suit project. Since initially occupying space in the building, Yum
Brands had consolidated operations in the building enabling them the potential
contract the requirement by approximately 20,000 SF. The reasons to consider
staying in the building were Yum Brands’ significant investment in building amenities
(cafeteria, daycare, and fitness center) and the large floor plate (50,000 SF per floor).
The most challenging aspect of the assignment was limited number of existing
buildings capable of holding the requirement.
Yum Commerce Center I
5200 Commerce Crossings Drive
Louisville, Kentucky 40229
SOLUTION
We entered the market early in the process which allowed us to pursue new
construction options.
We prepared a thorough market survey with detailed
information about the available options, including photographs, floor plans, aerial
“Yum Brands was in need of assistance in
maps, and location maps. Multiple tours were conducted with the project team and
consolidating operations situated
senior management to create a short list of buildings to receive a Request for Proposal
throughout Louisville, KY. By entering the
(“RFP”), one of which was their existing landlord.
market early, we were able to create the
outlining their requirement and requesting specific concessions, improvement
leverage that we needed to negotiate a
allowances, expansion rights and other important lease terms. We submitted the RFP
favorable deal with Yum Brands’ existing
to the short list of properties and discussed the client’s needs with each of the property
landlord.””
representatives to encourage the most competitive and accurate proposal for our
We generated a detailed RFP
client’s consideration. We prepared detailed financial analysis of each proposal and
David L. Hardy, Managing Director
CB Richard Ellis|Louisville
SIZE
150,000 SF
SERVICES
Tenant Representation
REFERENCES
Bob Kelly – Yum Brands
worked with the client to formulate counter proposals for the finalists. After selecting
their current building, we negotiated the business terms and the lease document with
our client’s counsel.
BENEFIT
By entering the market early we were able to leverage new construction option to
negotiate a favorable deal with Yum Brands’ existing landlord. In addition, we were
able to relocate operations from a neighbouring Yum Brands requirement to fill the
20,000 SF of surplus space. This enabled us to negotiate a renewal for the entire
building instead of contracting the requirement, which would require substantial costs
to multi-tenant building the most favorable terms possible. We were able to negotiate
for Yum Brands the most favourable deal possible and secure sufficient space to meet
their short-term and long-term needs while preserving crucial employee amenities.