ITRA Global News

Case Study: Girl Scouts of America – Detroit

January 29, 2019

Above is a picture from the ribbon cutting ceremony: Girls Scouts of America CEO Sylvia Acevedo (a former rocket scientist), and Denise Dalrymple, CEO of Girl Scouts of Southeastern Michigan. 

The Challenge:

The Girl Scouts of America (GS) had a long-term lease in the Fischer building in Detroit, Michigan, with significantly over-market rent and more square footage than needed. Other challenges in this building were landlord’s bankruptcy, unresolved maintenance issues that caused property damage to the premises and tenant’s furniture, and inability to use all its leased space due to an osprey (protected species) nest near the windows.

Lynn Drake of ITRA Global Detroit/Compass Commercial was tasked with identifying available spaces for lease that offered free parking in the Detroit market.

The Results:

After touring seven buildings, GS chose 1333 Brewery Park, a flex building with a Frank Lloyd Wright feel near the Detroit farmers market. Compass Commercial very successfully negotiated a ten-year lease for 18,250 rentable square feet:

  • $3 million savings in rental costs over the term, compared to extension in the tenant’s previous location
  • $0.90 per sq. ft. reduction in water expenses
  • $0.30 per sq. ft. overall annual reduction of operating expenses
  • 41% reduction of square footage leased by changing to an open work environment and removing several existing columns
  • $25.00 per sq. ft. improvement allowance from landlord to build out the space
  • Right to cancel during the seventh year of the term
  • Fenced-in safe campus area with 24/7security
  • Free parking for all employees and visitors, with four designated spots directly in front of the premises plus four covered spaces for senior staff
  • Use of a loading dock for loading and unloading Girl Scout cookies
  • New landlord is well respected for his integrity, and maintains the complex in pristine condition

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