WPP

In mid-2000 one of three largest global advertising agencies selected our team to be its sole-outsourced real estate provider for the Americas.  Subsequently, the Client increased the scope of our geographic service area to APAC. The service agreement has recently been extended through 2006. At the time of the initial contract award, WPP had a major pending acquisition scheduled to close within 90 days, and we were able to mobilize resources to support WPP’s fair market evaluation and integration of the target companies’ real estate portfolio. The current size of WPP’s portfolio under management is a total of 9 million sf, 7 million in the Americas and 2 million in APAC.

APPROACH

Align resources with the Client’s – providing dedicated staff in New York, London and Hong Kong.

Outsource Lease Administration us for the Americas and Fulcrum for APAC and EMEA – access is provided worldwide through an ASP service offsite

Add additional resources to the account for valuation, alignment, and occupancy consulting as required for major engagements including M&A activity and major collocation initiatives

RESULTS

Lease data management in place for SOX compliance

Reduced occupancy costs by $16 million on an annualized basis through a combination of re-stacking, backfilling, downsizing on renewals, early renewals, lease terminations, and subletting

Generated $20 million in transaction concessions as measured from the first written proposal to the final
business terms

Integration and work out of acquired company portfolios – reduced vacancy and redundancies from 60% to 15%

Subleased, terminated, or downsized approximately 630,000 sf of surplus property

Achieved operating cost reductions of $500,000 annually since contract inception