SUN MICROSYSTEMS

Situation

Sun Microsystems leased 50,000 sf or 50% of the space of its building and had two years remaining on its lease.

Sun Microsystems was looking for occupancy savings across its portfolio.

Activities

Assessed Atlanta real estate market cycle – market was soft and ideal for negotiation.

Building was 25% vacant with other leases coming up for renewal.

Engaged Landlord in “extend & blend conversation”.

Extended current lease 4 years beyond expiration.

Results

Sun Microsystems was able to lower its current rental rate and get TI allowance to “refresh” its existing space.

Net economic benefit was to lower its occupancy cost by nearly $1 million over the remaining two years of the existing lease.