Schlumberger Oil Field Services
Schlumberger Sema (SLB), was discontent with their lease obligation due to the presence of substantially lower rental rates on comparable offi ce product in the softening early-2002 Southeast Denver offi ce market.Additionally, SLB had acquired Convergent Group, Inc. in 2000, adding Convergent’s 144,000-square-foot leased portfolio at the Fiddler’s Green Center Complex in Englewood. Convergent’s two-building lease was not consistent with the long-term business objectives of SLB.
The Fiddler’s Green Center buildings were completely leased and would not be able to accommodate the aggressive growth projections that SLB had forecasted, thus SLB wanted to know what, if any, options might be available. In examining SLB’s current lease, the Studley (now Savills Studley) team found that the landlord was over-billing SLB on related parking charges totaling in excess of $1.3 million.
SLB retained Studley to conduct a long-term strategic plan for their facilities and potentially restructure their lease and/or relocate their headquarters. The options of relocating to a new building or becoming an anchor tenant in a build-to-suit project at a substantially lower rental rate were thoroughly explored. Tremendous leverage was created with SLB’s current landlord, who realized that relocation was indeed a viable option for SLB. In restructuring SLB’s lease, Studley was able to save SLB more than $2 million in base rent over the initial 15 months. This, coupled with the rebated parking charges, saved SLB over $3.3 million.
Fiddler's Green Center II,
Greenwood Village, CO
Consulting, Lease Restructure, Renewal