Forte Real Estate Partners met with Rapid Packaging in 2022 to evaluate their current location and determine whether it supported their business’s continued growth. Rapid Packaging had been in their Champlin location since 2003 and had grown to occupy the entire 96,000 sq. ft. building. The business experienced strong growth: with more than three years left on their existing lease, they had time to evaluate what options were available. In addition to the lease costs, they wanted to assess the costs of a move and potential renovation. The Forte Team was hired to provide a market analysis that included purchase options, leasing options, the potential purchase of their existing building, and a lease renewal of their existing building.

The Forte Team canvassed the market and provided a market analysis that included purchase options, leasing options, the purchase of their existing building, and a lease renewal of their existing building. The cost-analysis summary for the options available was presented to the owners, which gave them both short-and long-term costs for each option. In addition to identifying new potential locations, Forte worked with their landlord and negotiated a purchase price for their current building as well as a lease extension.

After reviewing the leasing options and the potential to acquire the building, the company decided that renewing the current lease was best for the company’s short- and long-term goals. With an aging roof and HVAC equipment there was significant upcoming maintenance expenses on the property Rapid Packaging would incur if they purchased the facility. Forte negotiated with the landlord and made sure when these expenses come due, they would be paid for by the landlord and not included into the operating expense of the property on a long-term lease renewal.  Both of those concessions along with the overall terms and conditions of the extension helped solidify the decision to extend the lease at their current property.

“The team at Forte Real Estate Partners helped us evaluate all our options in the marketplace including buying a building, leasing in another location, buying our current building, and renewing in place. They were clearly focused on our best interests and structured a transaction that provided us with fair terms and conditions in a rapidly rising industrial market while also providing flexibility in the event our real estate footprint changes in the future. We appreciate their efforts and would highly recommend Forte Real Estate Partners as a trusted advisor,” noted Mike Sime and Phil Milne, co-CEOs – Rapid Packaging.

Mike started the business in 1988 and Phil joined him in 2010.