Case Studies: Protax Consulting Services

Protax Consulting Services – New York, NY

Challenge

Protax Consulting Services “Protax” is the world’s leading Global Mobility Tax Services U.S. individual international tax CPA firm, specializing in the delivery of world-class tax compliance and consulting professional services in U.S. Expatriate tax, Foreign National/ U.S. Nonresident Alien tax, and the U.S. taxation of High-Net-Worth individuals. Protax Consulting Services had leased 1,563 rsf on the 4th floor of 7 Penn Plaza. They had nine months remaining on the lease, and Marc Strohl, CPA Managing Partner, realized that they were growing out of the space and required larger premises, there was also a realization that recruiting and retaining employees would be problematic if the space were old. Lastly, Marc did not want to relocate during tax busy season; however, he liked the building, and the management ran a first-class operation.

Action

Lee’s Financial Service Department abstracted the lease because they wanted to compare the economic terms to what the landlord was billing Protax Consulting Services. The team ran a cash flow of their remaining obligations to show what they paid each month at their current space (base rent, electric, taxes, etc.). Lee’s Project Management Department interviewed Marc Strohl, Managing Partner, to determine how much usable space Protax Consulting Services required. Lee’s Research Department developed a list of spaces between 2,200 to 3,000 rsf in the Penn Station area. Lee’s Research Department included three spaces available at 7 Penn Plaza. After Protax toured the spaces at Seven Penn Plaza, Lee’s Financial Service Department and Lee’s Project Management Department determined that suite 816, 2,330 rsf, was the top choice. At this point, the team informed the landlord that Protax could renew in their current space. However, they would consider moving if they could achieve a rent close to what they currently pay. After a long negotiation, Protax Consulting Services moved to Suite 816.

Results

• The landlord built a new space that was more conducive to working, with ultra-modern amenities.
• The employees enjoyed their new ultra-modern, spacious offices coming to work more.
• Protax Consulting Services  did not move during tax season but moved in mid-May.
• Protax has the landlord supply the architectural, engineering and filing cost, typical in today’s commercial rental scene. Protax seemingly had additional leverage to have the landlord add items that normally may not have been granted in a more robust market.