Challenge
Electroswitch Electronic Products, headquartered in Raleigh, NC, is a leading rotary switch manufacturer. S.G.I. de Mexico, its subsidiary in Ciudad Juarez, had a 5-year lease on a 51,359 SF facility in the northern part of the city. TeamNAFTA.com professionals realized that the lease rate was far above the market standard for a building with similar characteristics. However, due to the cost of moving operations and the willingness of the company to retain its labor force, it was difficult for Electroswitch to effectively negotiate with their current landlord.
Solution
In November of 2002, S.G.I. de Mexico gave the assignment to TeamNAFTA.com to work as exclusive broker to negotiate the lease rate on their current building. By performing a thorough evaluation of the entire Ciudad Juarez industrial market, TeamNAFTA.com was able to create a bidding situation between the current landlord, local and international developers.
End Result
In August of 2003, S.G.I de Mexico signed another 5-year lease contract on their current 51,359 SF building located in Ciudad Juarez, Mexico. the TeamNAFTA team was able to lower the lease rate by 25%.
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