Case Study - Technical Mold Services

The Challenge

 

Technical Mold Services, a manufacturer of steel molds for the food industry, had long run out of space in its original Brampton facility. This was coupled with the negative impact of surrounding tenants upon its business operations. Demand for their products was exceeding their ability to meet with customer orders, creating the pressure to make a move.

 

They had another year remaining in their lease obligation at the time, creating a very real fear of substantially increasing their overhead costs with the possibility of paying rent in two facilities.

 

The Solution

 

Melanie King quickly secured a freestanding manufacturing facility in the client’s preferred market, Bolton, where product in their size range continues to be in tight supply.

 

The building was on the market for sublease, with only two thirds of the space actually available at the time. With creative negotiation involving the head landlord, we arranged for an assignment of the existing lease (which had six years remaining) and for a sublease agreement for the surplus office space to the original tenant.

 

This solution was a win-win for all parties involved as it gave Technical Mold Services the most control over their future options in the building and reduced their overhead with the sublease agreement in place. The landlord gained a solid tenant with excellent growth potential while maintaining his relationship with the original tenant.

 

It was only through a careful analysis of the existing lease, the drafting of a sublease agreement, and full and open communication amongst the two tenants, head landlord and with the cooperation of the listing agent was this unusual transaction accomplished. Technical Mold Services also hired Melanie King to sublease out their past premises, which was completed with the cooperation of the head landlord.