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Industrial · Lease + Renewal · 2021, 2025

CDI Flooring — Two Transactions. Six-Year Client Relationship.

2
Transactions
6+ yr
Client Relationship
Colliers
Opposing Broker
— Full Case Study

Client Snapshot

  • Sector: Industrial / Commercial Flooring
  • Market: Nashville, TN
  • Deal Type: Industrial Lease + Renewal
  • Size: 5,700 SF
  • Combined Terms: 72 Months
  • Transactions: 2 (Lease + Renewal)

The Situation

CDI Flooring is a commercial flooring contractor requiring industrial space with warehouse capacity, dock access, and an integrated office component to support operational logistics. The Giles Group represented CDI Flooring on the initial lease and, three years later, on the renewal of the same facility.

The initial engagement required negotiating a lease structure that protected the client's cost base with rent controls, operating expense caps, and physical improvements to the facility. The renewal required re-entering the same negotiation against a landlord who knew the tenant was unlikely to relocate — and using that dynamic strategically rather than defensively.

The Challenge

Each transaction presented a distinct challenge:

On the initial lease: the facility required a dock-leveler installation that the client needed but the landlord had no obligation to provide. Securing that improvement as a landlord contribution required structuring it as part of the lease negotiation.

NNN expense volatility in industrial leases can materially impact a tenant's total occupancy cost over a multi-year term. Operating expense caps are not standard. Negotiating them requires framing the ask in terms of risk allocation, not just cost.

On the renewal: the landlord understood the client had invested in the space and was operationally rooted. That knowledge shifts leverage toward the landlord. Re-establishing competitive pressure was essential before any renewal conversation began.

Our Process

The Giles Group applied its Define → Underwrite → Create Leverage → Execute framework to both transactions.

Define

For the initial lease, documented the client's operational requirements including dock specifications, warehouse dimensions, office footprint, and utility needs. For the renewal, assessed current market conditions, comparable available options, and the client's operational flexibility — establishing a realistic picture of relocation cost vs. renewal cost.

Underwrite

Modeled total occupancy cost for both transactions — base rent, NNN, and improvement costs. For the renewal, built a market comparison showing what comparable spaces would cost the client to occupy, including relocation cost, to establish the value range of a renewal vs. a move.

Create Leverage

For the initial lease: packaged the dock-leveler installation, operating expense caps, and free rent as a single negotiating position. For the renewal: identified and toured comparable alternatives to establish genuine relocation credibility — ensuring the renewal negotiation was not conducted from a position of dependency.

Execute

Both transactions managed through LOI and lease documentation. Initial lease structured with NNN caps, free rent, and landlord-funded dock-leveler installation. Renewal structured at market-appropriate terms with continued cost protections.

Results At A Glance

Initial Lease — 2021

Size: 5,700 SF

Operating Expense Cap: NNN expense controls negotiated

Physical Improvement: Dock-leveler installation

Lease Term: 3 years

Renewal — 2025

Size: 5,700 SF — same facility retained

Renewal Term: 3 years

Outcome: Cost-controlled renewal preserving operational continuity

Relationship: Ongoing — 6+ year client relationship

The Advisory Angle

The CDI Flooring relationship illustrates something important about the difference between a broker and an advisor. A broker closes a lease and moves on. An advisor stays engaged through the lease term, tracks the expiration, and re-enters the process at the right time to protect the client's position at renewal.

The dock-leveler on the initial lease is a good example of how the advisory approach works in practice. The client needed the improvement. The landlord had no obligation to provide it. But by structuring the dock-leveler as part of a packaged lease position — alongside free rent and NNN caps — the client received a landlord-funded operational improvement that would otherwise have been a direct out-of-pocket cost.

That kind of outcome requires knowing what to ask for, when to ask for it, and how to frame it so that granting it is easier for the landlord than refusing.

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