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OBJECTIVEThree years prior to the natural lease expiration, evolving corporate needs dictated a change in real estate strategy from low cost focus to an office environment that would attract and retain talent and accommodate extensive growth for the newly formed Cimarex. Cimarex was formed from a merger of Key Production and the oil and gas assets of Helmerich & Payne, Inc. The merger and subsequent organic growth created the need for increased reception and conferencing areas, right sizing of offices, overall expansion and better flow through the space. | ||
RESULTSInitially Cimarex thought they would be forced to live through cosmetic improvements in their current space, acquire short term expansion and wait until their lease expiration. After reviewing their lease, Ross advised them of an early termination right which reduced the remaining lease term to half. Still with substantial term, Ross convinced Cimarex to test the market and see if achieving the corporate goal of increasing quality and size could be achieved without substantial rent increase. By using lower quality options including the current landlord as a "stalking horse", Ross was able to achieve all Cimarex's objectives including high quality and future expansion options while actually reducing their per square foot rent. |





