| The Process | With the payment of an amount above the market price, a research was conducted to verify the existing alternatives. It was decided to stay in the same property and a negotiation was held with the owners’ representative |
| Results | Exemption of the readjustment pass-through, a 10% reduction in the contract value, and presentation of a new rental guarantee, meeting the headquarters’ requirements |
The Company
Milliken, one of the world’s largest textile companies, is internationally recognized as a leader in technology research, innovation, and customer service. Its strategy is to focus on the combination of textile and chemical technologies to meet market demands. The company currently has 11,000 associates in 60 factories around the world who develop more than 38,000 high-quality textile and chemical products ranging from astronaut accessories to baseball players’ uniforms.
With the expiration of Milliken’s lease contract, its renewal was necessary. Upon initiating this process, they realized that the lease price was above market levels in the region, and that a new rental guarantee would be required, contrary to the norms established by the U.S. parent company.
Milliken counted on the services of Ocupantes to identify nearby offices, in the Marginal Pinheiros and Berrini regions, that were adequate for their needs, and to compare the differences in values and spaces. From this detailed research, three more buildings were selected. At the end, we determined the average value of the m² leasable area, and other characteristics of each option.
With this information, Ocupantes began the analysis, identifying the break-even point and initiating negotiations with the selected options. After several rounds of negotiations, the one that proved most favorable was to remain in the current space. From this point on, Ocupantes began a more in-depth negotiation with the landlord’s representative, which resulted in 3 advantages: 1st exemption of the readjustment transfer, 2nd a 10% reduction in the contract value (within market values) and 3rd presentation of a new rental guarantee that met head-office requirements.
