FabFitFun - Proposal

LEASE NEGOTIATIONS Once a city or region is selected, a local broker will be selected for the assignment and will be highly integrated into the process. The project team identifies the local broker and works with that professional to obtain a detailed market analysis. The local broker is closely involved with all due diligence related to the transaction, but their focus is primarily on market-based knowledge with a core account team transaction manager running the project to assure consistency. The financial analysis, final LOI and lease negotiations are all headed up by the core account team transaction lead with the support of the local broker. This ensures that FabFitFun gets consistent service regardless of market, and that each transaction is approached strategically, as the core team running the project is an extension of FabFitFun. Including the best broker in the market ensures the best negotiated lease terms are obtained. By leveraging FabFitFun’s tenancy, we can create competition within the marketplace during negotiations.

CASE STUDY

Confidential Leading Online Retailer

CONFIDENTIAL

eCommerce Fulfillment

Client was unable to keep pace with the rapidly scaling business relying solely on an adequately resourced in-house real estate planning, search and transaction function. The risk of failure to deliver sufficient fulfillment capacity on time was potentially disastrous to the value proposition, customer experience and the brand. Planning was done peak-to-peak resulting in zero competitive leverage in the market and less than ideal lease terms. RESULTS + + Cushman & Wakefield team was embedded with Client’s HQ operations offices to work seamlessly as extension to Client’s small operations real estate organization. + + C&W created planning tools to help Client adopt greater discipline in identifying markets of future interest for fulfillment operations. Through early identification, Client could quietly control multiple sites and create competition between multiple markets to drive the most favorable terms. + + Lack of available existing product that was suitable for Client’s state-of-the-art fulfillment technologies demanded C&W develop and run a predominantly build-to-suit (BTS) expansion program; C&W periodically managed full national RFPs for BTS projects to all leading regional developers, while separately running a capital solicitation program to match optimal sites, developers and capital providers. + + In conjunction with evaluating feasibility of hundreds of potential sites each year, C&W managed all due diligence including entitlements analysis; labor availability, quality and sustainability; incentives opportunities; and fit with existing and future transportation needs. + + Client’s internal approval process had been extensive and slow, resulting in costly schedule compression to meet First Receive date commitments. C&W team created a standard set of communication tools to preflight key issues to executive management throughout lease negotiations. Final approval for execution was shortened significantly due to identification of key issues along the way.

Cushman & Wakefield | FabFitFun