C&W Negotiates Flexible and Cost-Effective Lease Renewal for DKSH
DKSH Vietnam’s head office is located at E Town 2, an out-of-town office park located in Tan Binh District, situated close to Tan Son Nhat Airport (HCMC). DKSH is one of the anchor tenants within E Town, occupying over 5,200 sq.m. (about 55,973 sq. ft.) of Grade B office space. In early 2011, nine months prior to their lease expiry, DKSH wished to review its options for a potential relocation due to the wealth new office supply in the market. Cushman & Wakefield was appointed as DKSH’s Tenant Representative to devise a strategy for "renewal vs. relocation," taking into consideration its long-term growth plans in the most cost-efficient manner.
Based on DKSH’s relocation requirements, an option list was created. Five buildings were initially selected and inspected, allowing DKSH to fully appreciate the viability of alternatives in the market. After careful consideration and analysis, the five relocation options were shortlisted to one relocation option, along with the option to renew in the current location. Cushman &Wakefield’s long-standing relationship with both of the shortlisted landlords promoted efficient and effective negotiations. As a result, our team was able to achieve competitive rentals and flexible lease terms in both locations.
After six months of negotiation, a lease renewal was finalized at E Town 2. Cushman & Wakefield was able to reduce DKSH’s rental costs and, at the same time, commercial terms were also significantly improved. This provided DKSH with lease flexibility that allows the company to expand or contract over time depending on its business requirement.