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Case Study

Competitive market strategy for Owens Corning

Owens Corning was leasing two inefficient warehouse buildings located in Kansas City, Kansas and decided that, for efficiency purposes, the warehouses should be combined. An ideal building became available next to another Owens Corning warehouse. The Landlord realized that Owens Corning would have interest in
the building and consequently tried to drive the rental rate upward.

Owens Corning engaged Jones Lang LaSalle to handle strategy and negotiations to create leverage to achieve a below market lease rate.

• Secured adjacent building to Owens Corning owned warehouse

• Landlord spent significant Tenant Improvement dollars to upgrade the building and to connect Owens Corning owned next door.

• 36 month lease with cancellation clause after first 12 months with no cancellation penalty.

• Achieve $ .50 per square foot below market rental rate saving $100,000 per year; a three year total of $300,000.

Services Provided
• Competitive market survey
• Strategy and lease negotiations

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