TeleCommunication Systems, Inc.

Client Situation

TeleCommunication Systems (“TCS”) was a 57,000 square foot tenant at 2410 Elliot Avenue in Seattle for approximately 15 years. With 3 years left until lease expiration, the technology company had not yet focused on its next location.

Consideration Analysis

George Santos and Ryan Miller of Savills Studley teamed with Greg Inglin and Connor McClain, experts in Colliers International’s Seattle office, to begin an analysis of TCS’ space requirements. Greg and Connor knew that time was of the essence due to the city’s massive “Waterfront Seattle” project, of which Annapolis-based TCS was not aware. With concept design approved and several phases already in progress, the waterfront redevelopment project was on target to complete the enhancements to the area around TCS’ offices within the exact timeframe of the company’s renewal, leading to a potential loss of negotiating power in the face of ensuing rental rate hikes. In addition, TCS did not want to look at space elsewhere due to the high relocation costs associated with moving its extremely large server room.

Result

Because the team met with TCS’ leadership early and educated them on the importance of timing, the company was able to remain in its space on Elliot Avenue at incredible below-market rates through an amendment extending the lease term until December 2022. The team also negotiated three months of rental abatement at execution, an option to renew, and a $12 per square foot tenant improvement allowance for use immediately which was also cross-funded towards rent.

Summary Information

  • Property: 2401 Elliot Avenue, Seattle, WA 98121