Case Studies

 

Transaction Details

Client
LightSquared

Property
10800-10802 Parkridge Blvd
Reston, VA

Transaction Size
94,206 square feet

Transaction Type
Renewal

Industry

Broadband Provider Renews Lease With Generous Improvement Allowance  

 

Client Situation

LightSquared, the first wholesale-only integrated wireless broadband and satellite network provider in the United States, had occupied their space since 1993. Starting with a small presence in the building and ultimately occupying the entire building by 2010, LightSquared’s needs had changed significantly over fifteen years. In 2010, LightSquared determined the space as configured would limit its ability to reshape the company. They were poised to launch the next generation of technology yet hampered by the need to preserve the large network operations center (“NOC”) embedded in the premises until the newer systems were operational. This major upgrade would not occur until after LightSquared’s lease expiration, requiring development of a strategy to phase out of the old systems and radically alter the current space to accommodate the needs of the growing company. Further compounding the situation, LightSquared had an enormous satellite dish on the premises which would soon be obsolete but also needed to remain until after the lease expired.

Consideration Analysis

Working closely with senior management, Studley (now Savills Studley) helped guide LightSquared to define its needs, accommodate its ambitious hiring plan, and address the challenges posed by the satellite and old equipment in the NOC. In 2010 the economy and the commercial real estate market in Northern Virginia were impacted by downsizing of tenants and increasing vacancy. Studley leveraged these conditions and LightSquared’s needs while maintaining confidential its need to preserve the NOC and satellite beyond the lease term.

Result

After a thorough evaluation of a wide range of viable options in a broad geography (renewal, relocate, Class A, B and C buildings, lease and purchase), LightSquared renewed its lease. Studley negotiated a lease with a generous improvement allowance accommodating LightSquared’s new standards and plan for significant growth, below market rental rates and flexible lease provisions providing expansion rights in the adjacent building.

 

Meet the Team

William P. Quinby
Vice Chairman, Co-Regional Manager

Since joining the firm in 1987, Bill has completed commercial real estate projects totaling in excess of 25 million square feet. As an executive vice president and branch manager of the Suburban Washington office, he brings more than 32 years of experience in the commercial real estate industry, representing clients throughout the DC metropolitan region and nationwide. Bill's background in architecture, development and project financing for tax exempt and taxable developments has led to his success advising public and private sector clients on over 20 build-to-suits to date.

+1 202 624 8551

 

Wendy Feldman Block
Senior Managing Director

Since joining Savills Studley in 1987, Wendy has focused on providing real estate services on behalf of major tenants in Washington, DC and around the country with a focus on law firms, associations, and corporations. Her expertise lies in market intelligence and structuring transactions that best suit her clients’ objectives. Wendy provides a broad range of services including build-to-suit transactions, lease deals, due diligence and acquisitions and dispositions.

+1 703 827 6287

 

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