Franklin Shanks Assist in a Lease Relocation for A Medical Retailer
The Company:
Global Retail Sleep and Breathing Solutions company.
Our Engagement:
Franklin Shanks was appointed to source a replacement site for the end of the lease term. Along with working closely with the client to provide a suitable fit-out.
FS Project Management were appointed to manage the fit-out of the store. The key benefits in having an independent project manager are;
Liaison with Centre management to ensure policies and procedures were fully understood for the build-out of the space
Approval process both in-house Centre and certifiers for issue of Complying Development Certificate
Design review to ensure all information required for full fit-out requirement
Program management and clear expectations set for tendering shopfitters
Tender process to ensure competitive cost achieved for ResMed
Tender review for minimisation of variations
Weekly site meetings and reporting to key stakeholders within ResMed
Onsite quality control for minimisation of return to site for shopfitters
Occupation Certificate management to ensure the first day of business (FDOB) achieved
Full defects reporting and management
The Challenge:
The old site was in part of the suburb with very little foot traffic and low brand visibility. The sales of their products had been in steep decline for the best part of 2 years as the major shopping centre expansion and renovations attracted trade away from local strip shops. The client’s brief was to source a site close to the major shopping precinct with high visibility, and parking for staff and clients to boost awareness of the brand and sales. Based on internal Data the client wanted to remain in the area as a bigger client base could be captured.
The Outcome:
Whilst the site was being sourced by FS, I recommended testing the market inside the main shopping centre and lifting brand awareness.
A Kiosk contract was negotiated until a suitable site became available. A site within the centre became available with a fit-out that could be worked around. The site was delivered warm shell to the client, significantly saving on full fit-out costs. Also meeting client sustainability criteria.
A Gross lease negotiated from an initial offer of $120,000 down to $100,000 gross per annum
With a fit-out contribution of $80,000 to be applied to the rent across the term of the lease.
FS Project Manager Nick Maric worked closely with the client and centre around fit-out design and tendering the works delivering the fit-out alterations on time to meet the proposed opening date and lease commencement date.
From the client:
“We have seen a significant jump in sales (and conversions to PAP therapy)!
157.3% increase in revenue sales in the 7 months since opening new store and 246% increase in conversion products.”
