T3 Capital, LLC
One State Street Plaza
Entire 10th Floor
T3 Capital, a 25,000-square-foot trading operation formerly at 100 William Street had been trying to negotiate a renewal with the ownership’s agents CBRE. When we had met with them, their last proposal from the owner was a seven year team averaging $49.00 per square foot. Since T3 Capital and the Landlord were at a stalemate, we were hired as their exclusive broker to negotiate on their behalf.
We immediately showed them other prospective properties priced 20% less than 100 William Street, while simultaneously submitting low-ball (but appropriate) offers for the space at their current building. After touring approximately 20 different properties, we narrowed our choices to three buildings: 100 Church, 1 State Street Plaza and 100 William Street all of which were represented by CBRE as the Landlord’s agent.
T3 Capital loved 1 State Street Plaza, however the asking price was $46.00 per square foot which was significantly higher than their budget while 100 Church was $36.00 per square foot. We essentially used 100 Church and 100 William Street as bait to drive the price down at 1 State Street Plaza even though CBRE had represented all three properties.
Had T3 Capital hired CBRE as its tenant representative it would not have been able to achieve the incredible numbers shown below. At the time of these negotiations 100 Church Street had a large block of space available so the owner was eager to make a deal, however, T3 Capital much preferred 1 State Street Plaza. The tenant visited 1 State Street Plaza 15-20 times (versus just 2-3 visits to 100 Church Street) and had CBRE represented T3 Capital it would have been obvious which way the tenant was leaning. T3 Capital would have lost its leverage in negotiations. Since T3 Capital hired Norman Bobrow & Co., Inc. (A tenant-rep only firm) it was able to fully control the flow of information about its final plans and leverage each building against each other for the best possible numbers.
With aggressive negotiations with 1 State Street Plaza, we eventually negotiated a rent of $30.00 for 5-years, $32.00 for 5-years and $34.00 for the remaining three and a half years, a total of $5,203,275 off the initial asking price. Combined with a $1,081,200 workletter and eight (8) months of free rent valued at $576,670, T3 Capital had a total savings of $6,861,145 over the course of their lease.