Sydney Gay and Lesbian Mardi Gras (SGLMG) was looking for a new warehouse site to prepare for the annual Mardi Gras Parade and Festival. The original requirement was for 1,000 sqm space with a 3-year term.
The company was also looking to relocate its office to an LGBTQIA+-friendly space that would provide enough workstations to support the 2023 World Pride. SGLMG strongly preferred to keep their office within the Oxford Street area but were unsure if this was possible due to high rental rates and low vacancy.
Proud to champion the cause and to work with a not-for-profit organisation, Tenant CS took on the projects enthusiastically and with the central goal of reducing costs and negotiating better-than-market terms.
To achieve this, for the office component of the project, the team explored the following possible scenarios:
And for the warehouse component, Tenant CS undertook a new site search and assisted in lease negotiations.
This project was for a not-for-profit company, so all costs had to be identified upfront and remain within budget.
Tenant CS secured a refurbished office space in a heritage building on Oxford Street with significant relevance to the LGBTIQI+ community. The team also successfully negotiated for the landlord to pay for the tenant works, as well as a below-market rent, low annual increases, a fixed review option period that could be called on at any time, and a rent-free period which assisted in annual budgeting and forecasting.
This outcome far exceeded SGLMG's expectations, particularly considering the current rents in the area.
Sadly, after being presented with numerous options due to Covid, SGLMG was forced to cancel its annual parade two years in a row, changing budget and term requirements. Sydney's tight vacancy rate also proved problematic.
As such, Tenant CS adopted a different strategy, taking a direct approach to identify options with short-term leases. Ultimately, Tenant CS located and secured a flexible space through one of SGLMG's partners that met their requirements and budget in time for the Sydney Mardi Gras WorldPride event.