According to senior vice president John DeGrinis of the ColliersInternational Encino office, Arvato had an option to renew itslease at fair market value, but the renewal terms presented by thelandlord "were not satisfactory to our client." Although Arvato hadsubstantial existing infrastructure in its facility, "Soft marketconditions made a relocation feasible because of the aggressivelease rates and concessions that were being offered by otherlandlords," said DeGrinis, who represented the high-tech firm alongwith senior associate Patrick DuRoss and associate Jeff Abraham ofthe Colliers Encino office, as well as Colliers Bennett Kahnweilerin Chicago.

DeGrinis says that the Colliers team evaluated several facilityopportunities in the region with Arvato, but the company elected tostay in its existing location after the landlord offered the morefavorable terms. The landlords, Waikiki Marc LLC and Calavista LLC,were represented by Craig Peters of CB Richard Ellis.Arvato―a provider of services for the high-tech, games,video and audio sectors―is a subsidiary of theGermany-based media giant Bertelsmann AG.