PLANO, TX-After considering other options for its regional headquarters, Intuit Inc. has renewed its lease for 166,235 square feet at The Campus at Legacy.
The Palo Alto, CA-based software company inked a 15-year lease for the entire class A building located at 5601 Headquarters Dr. The new deal decreases the firm’s occupancy costs by 20% to 30%, according to Scott Collier, a managing director with Jones Lang LaSalle.
Collier represented Intuit in lease negotiations, along with Steve Thelen, also a managing director with Jones Lang LaSalle. The building owner, Atlanta-based Piedmont Office Realty Trust, was represented internally by Damian Miller.
Intuit’s decision ended more than a year of market evaluation, Collier says. “Intuit is a very sophisticated real estate user that is careful about the long-term commitments it makes,” he explains. “They have a very thorough process.”
Although Intuit has been a tenant in Piedmont’s building for 10 years, the firm considered other leased buildings, as well as build-to-suit and ownership opportunities. “They wanted to be sure they would get a good deal,” Collier tells GlobeSt.com.
Intuit stopped looking for alternative space once Piedmont made it clear that it was keen to keep the software company in its building. “We got to the point where the existing owner said ‘Look, we are very interested in keeping Intuit. What will it take to keep them?’,” Collier explains.
Collier says Intuit’s deal illustrates the flexibility that building owners are demonstrating today. “When a landlord starts thinking about getting back a vacant building and the expense involved in re-tenanting the space – the build-out, the carry costs – he realizes that he would like to get market rent, but that he could be happy with less than that,” he adds.
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