Cookie Use Notification

This site uses cookies to provide you with a more responsive and personalised service.

By using this site you agree to our use of cookies as set out in our cookie notice. Please read our cookie notice for more information on the cookies we use and how to delete or block the use of cookies.

BBDO-Novospassky Dvor

Click to Enlarge

The Challenge

In December 2008 BBDO (part of Omnicom Group) invited C&W help BBDO to execute an analysis of a number of BBDO lease agreements in different properties against current and forecasted office market conditions in Moscow and design a long term real estate strategy to consolidate all BBDO offices in one location in 2012 (when main BBDO office lease expires).

The Solution

Step 1:

In 2008 C&W team made a market research and outlined the number of possible options for BBDO consolidation. It happened simultaneously with the start of worldwide economic downturn. The downturn, in turn, influenced Moscow real estate market and presented new opportunities and threads for the consolidation project. Currently C&W monitors market changes to better understand market dynamics and will advise BBDO when it would be the best time to kick off the project.

Step 2:

At the same time with the market downturn C&W identified opportunity for BBDO to reduce the cost associated with real estate. Since C&W has a good knowledge of BBDO leases we indicated to BBDO the lease where considerable reduction in rent could be achieved. We initiated and lead lease negotiations with one of BBDO current landlords, and not only achieved a good reduction in annual rent but also managed to maintain good relationships with the landlord.

The Results

Holistic approach to BBDO real estate, i.e. we take into consideration Moscow office market current and forecasted situation, BBDO business needs, current BBDO real estate portfolio, its opportunities and limitations and all the adjacent issued related to real estate transactions and management;
Professional knowledge of BBDO leases terms and conditions, knowledge of BBDO quality of premises and business requirements to new premises and full support of BBDO real estate needs allowing timely identification of threads and opportunities associated with real estate;
A 22% decrease in annual rent as a result of rent renegotiations.