Stay or relocate? An expiring lease unlocks opportunity for new corporate real estate strategy
The client: Action Benefits
Action Benefits is a general agent serving small group and individual insurance agents throughout the state of Michigan. The company has offered health insurance products and services to families and individuals for more than 35 years.
The challenge: Reduce real estate footprint into quality space
The lease was expiring on Action Benefit’s outdated 32,129-square-foot office in Southfield, Mich., and the company was considering downsizing into a modern, amenity-rich space that better aligned with its financial and business objectives. In determining whether to stay or relocate, Action Benefits engaged the Plante Moran Cresa real estate transaction management team to find or create a space that met the company’s goals.
The solution: Property search & lease negotiation
PMC worked with Action Benefits leadership to identify the company’s real estate needs by considering key business objectives, space utilization, and cost KPIs. PMC’s space programming determined how much space the company would need in a new office building while weighing all relevant factors regarding impact on culture, recruiting, financials, and more.
PMC used this space plan to identify a list of viable options in the marketplace using an unbiased and strategic approach. After PMC and Action Benefits narrowed down the options through building tours, financial analyses, and negotiations with landlords, Action Benefits entered a lease on new office space right down the road. After a successful site selection process, Action Benefits parted ways from PMC and embarked alone on the construction process for the build-out.
The complication: Challenges during buildout
During the construction process, Action Benefits’ leaders were presented with technical questions and concerns that only an experienced owner’s representative could successfully navigate. PMC was re-engaged later in 2021 to work with Action Benefits’ leaders and the construction team to conceptualize the design, answer the tough questions, and navigate the construction process to create a space that aligned to the company’s needs.
The results: On-time and on-budget resolution
Construction completed in early 2023 on time and on budget. The new 20,355-square-foot office space offers a modern image for the company, with the benefit of excellent external signage. A full-functioning cafeteria, staff lounge area with ping-pong and shuffleboard games, and open collaborative space create a more energetic atmosphere. With Action Benefits’ staff to better collaborate and socialize in the space, this new space will support the company’s efforts to attract and retain top talent.
PMC has helped many clients assess their space needs and find the perfect office space to meet those needs. Contact us to learn more.