Transforming a Global Law Firm's Real Estate Portfolio
Introduction
Vestian partnered with a global law firm to strategically optimize their real estate portfolio following a major acquisition in 2015. Our comprehensive approach aimed to streamline operations, reduce costs, and improve space efficiency across the expanded portfolio, which had grown from 15 to 29 office locations and increased annual real estate spend from $30M to $65M.
Challenge
The global law firm faced significant real estate portfolio challenges following their major acquisition, including increased costs, redundant locations, and inefficient space utilization. They needed a strategic plan to optimize their expanded portfolio, reduce expenses, and improve overall operational efficiency within 3-4 years post-acquisition.
Solution
Vestian developed and implemented a comprehensive real estate strategy to address the client's challenges. We began by abstracting all leases and amendments, aggregating remaining obligations for all locations, and performing occupancy evaluations at underperforming and redundant locations. Our team conducted in-depth market research for each location and identified immediate, moderate, and long-term action items. We then implemented optimization strategies city by city, starting in Q1 2016. Key actions included eliminating all 5 redundant locations through various methods, disposing of 4 additional sites and excess space, and completing lease restructures and extensions at 5 strategic locations.
This personalized approach resulted in significant improvements, reducing the office count from 29 to 20, decreasing annual real estate spend from $65M to $45M, eliminating all markets with dual redundancies, and improving firm-wide occupancy density from 1,000+ RSF/attorney to 750 RSF/attorney. Vestian's strategic planning and execution helped the global law firm achieve its post-acquisition real estate objectives, optimizing their portfolio and generating substantial cost savings.
