According to senior vice president John DeGrinis of the Colliers International Encino office, Arvato had an option to renew its lease at fair market value, but the renewal terms presented by the landlord "were not satisfactory to our client." Although Arvato had substantial existing infrastructure in its facility, "Soft market conditions made a relocation feasible because of the aggressive lease rates and concessions that were being offered by other landlords," said DeGrinis, who represented the high-tech firm along with senior associate Patrick DuRoss and associate Jeff Abraham of the Colliers Encino office, as well as Colliers Bennett Kahnweiler in Chicago.
DeGrinis says that the Colliers team evaluated several facility opportunities in the region with Arvato, but the company elected to stay in its existing location after the landlord offered the more favorable 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 the Germany-based media giant Bertelsmann AG.
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