CHALLENGE

The New Mexico Mortgage Finance Authority (MFA) faced the challenge of outgrowing its current location and needing a new office space. After considering cost factors, MFA determined that ownership would be more affordable than leasing. However, their budget was approximately half the cost of new construction, including the necessary Furniture, Fixtures, and Equipment (FF&E). They aimed to occupy a new location within the next 12 months, with specific buildout requirements: 2/3 open space, 1/3 office space, plus supportive conference rooms, kitchen, breakroom, and a 3,000 sq ft conference presentation room. Additionally, the desired location needed easy access to I-25 and a wealth of amenities to attract employees.

ACTION

To address the challenge, a search of listed properties was conducted, but due to limited options, off-market options were also explored. A list of available properties was assembled which fit within projected occupancy cost parameters. Subsequently, the MFA toured eight shortlisted options to assess their suitability.

RESULTS

The result of the effort was the identification of their first-choice property. However, the owner had received other offers, requiring the MFA to demonstrate their surety of closing to secure the property. The first-choice location proved highly desirable, boasting abundant amenities and a park-like atmosphere. Importantly, the build-out of this property closely aligned with the MFA's requirements, necessitating minimal tenant improvements. Through negotiations, the MFA successfully included all FF&E in the sale, further enhancing the cost-effectiveness of the deal. The "turnkey" building option, inclusive of the FF&E, cost less than 50% of what new construction would have amounted to, resulting in substantial savings of over $700,000 for furniture alone.