The client: Michigan College Access Network
Michigan College Access Network (MCAN), a Lansing, Mich.-based nonprofit focused on increasing college readiness, access, and completion, had an ambitious goal: increasing the percentage of Michigan residents with degrees or postsecondary certificates to 60% by the year 2030. To achieve it, its staff needed a workplace that could facilitate collaboration, efficiency, and a positive, mission-driven workplace culture.
Unfortunately, this proved difficult once MCAN outgrew its office space. Staff were spread across multiple floors in the building where the organization held its lease. MCAN leadership engaged Plante Moran Realpoint (PMR) to help find a solution for their workspace needs and provide a comprehensive but fiscally responsible real estate strategy.
Establishing vision and strategy
PMR worked closely with the organization’s leadership to conduct a detailed space plan and develop a cohesive workspace strategy that would bring people together and better support the organization’s culture and mission.
However, making MCAN’s vision a reality still needed to be done within budget. Because its lease had been negotiated in a pre-COVID-19 market environment, annual rent increases meant the nonprofit was paying rental rates well above prevailing market rates. PMR’s transaction management team worked with MCAN to evaluate whether relocating, renewing, or restructuring its current lease would best support the workplace strategy.
Advantages of a blend-and-extend lease
PMR evaluated MCAN’s existing lease, assessed market alternatives, and identified opportunities to improve both space utilization and occupancy costs. After analyzing available options, we recommended a blend-and-extend strategy that leveraged MCAN’s position as the current building’s largest tenant.
The blend-and-extend approach allowed MCAN to renew its lease early in exchange for a significantly more favorable rental rate that was closer to prevailing market conditions. As part of the transaction, the landlord also agreed to provide an office renovation. PMR made sure the lease clearly documented the planned buildout as part of the lease negotiation process. Validating the initial budget and defining the scope of work for the buildout helped minimize project risk and reduce the operational burden placed on MCAN’s leadership team.
MCAN now has lease terms favorable to both it and the landlord, and enjoys newly renovated, cohesive office space. The approximately 11,000-square-foot office, located on a single floor, has been custom designed to support collaboration, flexibility, and organizational growth as MCAN works toward achieving its mission.
