Parbel a.k.a L’Oreal Duty-Free Division
6100 Blue Lagoon Drive, Miami, FL
Size: 24,878 SF
The Need: Consolidation and relocation
The Result: $2 million of savings and improved employee SF/ ratio
When L’Oreal purchased Yves St. Laurent (YSL), it resulted in the company having two Miami locations for their duty-free divisions. Although the two offices were in a two-mile radius of each other, each had a different landlord and the YSL lease had 7 years remaining term while the Parbel lease had a year remaining. Parbel had been at their location for 17 years.
At the onset of the assignment, Elizabeth demonstrated to Parbel that by re-designing their office space and moving to an open work environment, Parbel would reduce its employee/square footage ratio resulting in a cost savings.
Next, Elizabeth created a competitive environment by touring Parbel through nearby buildings which had space that fit Parbel’s criteria. She also implemented an RFP process which generated a comparative matrix for a thorough analysis.
Finally, Elizabeth engaged the YSL landlord in negotiations about a potential consolidation of the two offices. Due to the competitive environment she created, Elizabeth was able to persuadethe YSL landlord to agree to terminate that lease in exchange for Parbel relocating to another building within that landlord’s portfolio. She achieved this even though the landlord had another viable prospect at terms more favorable for the landlord.
First, Elizabeth eliminated an almost $2 million rental obligation with the early termination of the YSL lease. Second, she negotiated additional concessions which helped Parbel defer some of its moving expenses. Finally, Parbel reduced its office expense by lowering its employee/square footage ratio through an open work environment which also increased employee productivity.