MARATHON OIL CASE STUDY
1. Challenge Marathon Oil Company retained ARVO Realty Advisors (“Real Estate Trade name and affiliate of MCCG”) to provide tenant representation services for the renewal and extension of the lease for its Anchorage, Alaska office facility.
Solution First, ARVO Realty Advisors focused on finding suitable office space options, and then narrowed its selection to properties where office space of the required size and amenities was available.ARVO Realty Advisors successfully completed the assignment within the client’s objectives by:
- Developing a strategic plan
- Developing leasing goals
- Reviewing and analyzing existing lease
- Preparing a competitive property and market analysis
- Identifying a short list of qualified options
- Conducting property tours
- Preparing lease proposals and financial analysis
- Negotiating lease terms, including surrender of surplus office space
- Negotiating tenant improvement allowance for space reconfiguration, including new paint and carpet paid for by the landlord
- Negotiating early termination clauses
- Reviewing, analyzing, and negotiating lease agreement
- Post execution follow up
BenefitThe assignment was completed on time and at a lease rate below the market rate for comparable spaces in similar buildings in the submarket.
2. Marathon Oil engaged ARVO Realty Advisors to provide internal relocation services, including move management, furniture, and cable and data installation, for their corporate headquarters in Houston, Texas. The building space includes 20 floors with a total rentable area of approximately 650,000 sq ft.Marathon Oil’s objectives were to obtain low overall move-management costs and increased operational efficiency.
Solution ARVO Realty Advisors focused on safety issues, building a high performing team, increased use of technology, and reducing or avoiding cost.
Benefit ARVO Realty Advisors established lower move-management cost, improved operational procedures, developed systems to track and reward high-performing team members, and reduced cost by 37% in the first year. This approach awarded us recognition as a finalist for Marathon Oil’s Living Our Values award and expanded our contractual scope to include their Aviation Division’s hanger facility at George Bush Houston Intercontinental Airport.
3. Shell Oil Company retained ARVO Realty Advisors, along with our strategic partner, to provide tenant representation services for expansion of office space and extension of its current lease for office space in downtown Houston. Shell Oil instructed ARVO Realty Advisors to find office space for lease in the Central Business District (CBD) with strong preferential rights. (CBD office space was scarce.) Shell Oil also needed swing space to accommodate its interim growth needs pending the expansion.
Solution First, ARVO Realty Advisors focused on finding suitable office space options, and then narrowed its selection to properties where office space of the required size and amenities was available.ARVO Realty Advisors successfully completed the assignment within the client’s objectives by:
- Developing a strategic plan
- Developing leasing goals
- Reviewing and analyzing existing lease
- Preparing a competitive property and market analysis
- Identifying a short list of qualified options
- Conducting property tours
- Preparing lease proposals and financial analysis
- Negotiating lease terms, including terms for swing space tenancy and option to lease swing space