Zeidel & Associates Helps Prominent Nonprofit Realign Its Real Estate Footprint

Situation

Zeidel & Associates represents a prestigious multimillion dollar nonprofit that leased approximately 80 office locations across the country. Due to the impact of the COVID-19 pandemic and other factors, it decided to consolidate and vacate offices, with the goal of reducing its office portfolio to less than 30 locations. Zeidel & Associates was charged with creating and executing a strategy to downsize its real estate footprint.

Approach

Zeidel & Associates’ strategy to reduce its client’s footprint involved closing offices as of their natural lease expiration dates, exercising termination options when available, amending leases to provide for early exits, and negotiating leases for new offices to replace existing, unused space. This work required detailed review of the client’s extensive lease documentation portfolio, with existing leases carefully and accurately evaluated to determine potential exit strategies. Further, the firm instituted protocols to ensure that new leases would contain maximum flexibility in line with the client’s new strategy. As part of the process, the firm provided advice and counsel on relevant company polices, updated RFP forms and internal lease review checklists, analyzed critical termination dates and resulting termination payments drafted termination notices, and negotiated new letters of intent, leases and amendments, all of which was coordinated with the nonprofit’s general counsel, real estate facilities group and its senior real estate committee.

Result

As a result of this process, the client has closed, relocated and/or consolidated numerous offices across the county. This project is ongoing and will take several years to fully implement.