Our team knew the husband and wife owners of an older 3,750 SF warehouse property in the newly energized downtown Redwood City core. The owners had operated a sheet metal fabrication and HVAC business out of the property for decades. When they were ready to retire, they decided to sell the business and to lease the property to the new business owner. The rent structure was gross in nature, so the owners were still paying for the property taxes and insurance. We advised them to terminate the existing lease as their bottom line or net operating income only about $30,000 per year.
Based on our experience with representing other tenants in the downtown cores of the Peninsula, we knew that there was an opportunity for the owners to convert their warehouse property to tech offices. We guided the owners through the City’s planning department process as well as introduced the owners to contractors to get estimates for the designs we created for the new office space.