Listen to Our BlogsDana Mannix Gymnastics Center: Strategic Expansion and Lease Negotiation in a Rising Industrial Market
Client Profile
Dana Mannix Gymnastics Center is a premier gymnastics facility dedicated to providing high-quality training to young athletes in the Fishers, IN area. With a commitment to excellence and a passion for nurturing talent, the center has become a cornerstone in the local community. Over the years, their programs and enrollment have grown significantly, causing a need to expand to accommodate the increasing demand.
Partnership with Allies Commercial Realty
The partnership between Dana Mannix Gymnastics Center and Allies Commercial Realty began in 2022. Allies was initially engaged by the adjacent tenant, Watkins Engineering, to procure a subtenant for their 6,000 square foot space after they relocated to a larger warehouse in Noblesville. Recognizing an opportunity for growth, Allies informed Dana Mannix about the available space. Seizing the chance to expand, the gymnastics center elected to incorporate this additional 6,000 square feet, increasing their total facility size to 24,000 square feet.
Opportunity and Challenge
The primary opportunity was the immediate availability of adjacent space, allowing for a seamless expansion. However, the challenge was the lease rates in industrial real estate market were increasing quickly. Aligning the lease terms of both the existing and new spaces and negotiating favorable rates amidst rising costs required strategic planning and negotiation.
Analysis
Allies Commercial Realty conducted a comprehensive market analysis to understand current rental trends and identify comparable vacancies. By leveraging the gymnastics center’s long-standing history as a reliable tenant and the existing vacancies in the market, this allowed Allies the ability to negotiate more favorable terms. They emphasized the value our client brought to the property and the landlord’s benefit in retaining a reputable tenant.
24,000 SF Industrial Space in Fishers, IN
Our Success Story
- Seamless Expansion: Allies negotiated a sublease agreement for the additional 6,000 square feet, making it coterminous with the existing lease. This strategic move ensured both contracts expired simultaneously, providing operational consistency.
- Proactive Lease Renewal: Twelve months prior to the lease expiration, Allies engaged the landlord to negotiate a new lease encompassing the entire 24,000 square feet. Despite the challenging market conditions, they secured a below-market rental rate by highlighting the client’s excellent tenancy history and leveraging market alternatives.
- Tenant Improvement Allowance: Allies successfully negotiated a $40,000 Tenant Improvement Allowance. This enabled Dana Mannix Gymnastics Center to undertake cosmetic upgrades and improvements without incurring additional costs.
Results
- Expanded Facility: The center increased its space by 33%, allowing for more programs and the ability to serve a larger number of students.
- Cost Savings: Securing a below-market rental rate resulted in significant savings over the lease term, providing financial stability.
- Enhanced Operations: The Tenant Improvement Allowance facilitated necessary upgrades, improving the facility’s appeal and functionality.
Conclusion
Allies Commercial Realty’s strategic negotiation skills and market expertise were instrumental in enabling Dana Mannix Gymnastics Center to expand and secure favorable lease terms even in a rising market. By proactively addressing challenges and leveraging opportunities, Allies ensured the center could focus on its mission of developing young athletes. The successful expansion and lease negotiation have positioned Dana Mannix Gymnastics Center for continued growth and success in the years to come.
I have leased industrial space for the past 25 years for my gymnastics center. For the first time I used a broker, Adam Stephenson, to help me renegotiate my lease negotiations. The first time was for an expansion in 2022 and the next was for the entire 24,000 sq ft in 2024. I highly recommend him! Adam was extremely helpful and helped me navigate the new NNN lease set up. I believe he guarded my interests, including extra Tenant Improvements (TI’s) to make sure I was getting the best deal possible. I never hesitate to call Adam to help me with any of my commercial real estate related issues and I trust him to assist in anything I may need.
Dana Mannix
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