case study acme furniture – Vertical Strategies Real Estate

Client Representation – Lease

ACME Furniture, a quality furniture wholesale distributor established since 1985 with 6 regional branches and over 1 million sf. in the United States.

Challenge

Identify a showroom/warehouse facility to allow Acme Furniture to expand and grow business efficiently, increasing warehouse space while maintaining facility operating cost to a minimum.Based on Acme’s projected operational needs and facility requirements, the expansion targeted approximately 90,000 sf to 100,000 sf. warehouse or almost double the square footage they were currently operating from. A limited supply of showroom/warehouse facilities to accommodate ACME’s locational and operational requirements coupled with a high-priced market due to the scarcity of product, was the marketplace in South Florida.

Result

Vertical Strategies Real Estate in-depth industrial market intelligence, creativity and diligent team efforts facilitated ACME’s transition to a premier industrial facility in Miramar Park of Commerce; one of the finest industrial/commercial developments in South Florida.

The newly constructed facility provided an excellent corporate image and the additional cubic storage capacity of 32 ft. clear verses the 24 ft. clear buildings under consideration, justified transitioning to a smaller warehouse (with 32 ft. ceilings) without sacrificing storage space and lowering expected facility operating cost. Effectively, Acme’s lease cost was reduced by about 25%, when compared to the larger warehouses with lower ceilings, representing a significant savings of nearly $2 million over the lease term. Vertical Strategies Real Estate past dealings and good rapport with the landlord of the property led to favorable negotiations for our client, securing a competitive lease price with flexible terms.

During the build-out phase of this new facility, Vertical Strategies Real Estate represented ACME’S interest throughout the transition working directly with Miramar Park of Commerce’s management team of contractors, architects and other service providers. Advising on space design, warehouse pallet racking, communications and move coordination; all to insure a smooth transition into the facility. Vertical Strategies Real Estate was invaluable in negotiating an exit strategy with their former landlord that allowed for both parties to close out the lease with minimal concerns. Their former landlord was so impressed with Vertical Strategies Real Estate professionalism and market knowledge, Vertical Strategies Real Estate was entrusted with the exclusive listing to lease or sale the 55k sf. warehouse off the Palmetto Expwy.

In conclusion, today ACME’s business is thriving with grand expectations for continued growth at this premier Miramar industrial facility. Vertical Strategies Real Estate’s market knowledge, client focus and exceptional negotiating skills were key in providing ACME a $2 million-dollar savings. Regarding their former facility, Vertical Strategies Real Estate, successfully sold the facility achieving one of the highest price per square foot sales in the Hialeah, Miami submarket at time of sale.