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"Our unique office space requirements were a lot tougher than most."

 

Mark Fagan

Senior Financial Analyst

EchoStar Data Networks, a division of Denver-based EchoStar Technologies Corp., develops HDTV set-top boxes and Internet-over-satellite technology for DISH Network customers. Growth in recent years left the division severely cramped for space, but its requirements were daunting: EchoStar needed permission to place more than 50 satellite antennas on the roof of the building in which it leased space, and then needed miles of cabling to connect all of the antennas with each of nearly 150 workstations. Negotiations at that level demanded the expertise of Wm. Leonard & Co.

“Dozens of real estate agents contacted us over the past several years, but we’ve never considered working with anyone other than Wm. Leonard & Co.,” says Mark Fagan, senior manager of finance and operations at EchoStar Data Networks. “Wm. Leonard & Co. has maintained contact with us and monitored our office space requirements throughout the time we’ve been in business.”

Six years ago Wm. Leonard & Co. helped EchoStar move out of the Advanced Technology Development Center (ATDC) at Georgia Tech and into new facilities, but steady expansion resulted in overcrowded conditions. “Space designed for approximately 100 people had to be stretched to accommodate nearer 140,” says Fagan. “We expanded elsewhere within the building, but it wasn’t enough. We had people doubled and tripled-up in conference rooms, small break rooms, and even
in office supply closets.”

EchoStar engaged Wm. Leonard & Co. to search for space in a Class A property that could also accommodate expansion up to 240 people and a large engineering development lab. The lab had to be close to the building’s antenna-laden roof in order to  imitate a DISH Network customer’s home environment.

“Wm. Leonard & Co. made it clear at the outset that whatever property we selected would require an ‘extreme makeover’ for cabling, HVAC, and electrical requirements far beyond those of a normal office suite – and that we didn’t want to pay for the makeover,” Fagan recalls.

“Most building managers frowned on having even one satellite dish on their roof, let alone more than 50,” he adds, “but Wm. Leonard & Co. was skilled at convincing the landlords that we are the kind of long-term, quality tenant they want in their building.”

Location was also a factor in EchoStar’s search for new office space. The company needed easy accessibility from Midtown Atlanta to help retain its cadre of Georgia Tech interns and close proximity to major highways to satisfy its senior engineers.

Wm. Leonard & Co. located a building that ideally met EchoStar’s requirements, but negotiations reached an impasse when the building was sold and terms could not finalized with the new owner. “We needed to locate another building that could meet our unique requirements both economically and functionally.” Fagan recalls, “As Wm. Leonard & Co. realized negotiations were breaking down, they quickly located an alternative to give us leverage and another viable option. One of the challenges we faced was that the office market had changed significantly during this time and the business terms Wm. Leonard & Co. negotiated were no longer available without some creative thinking. Remarkably, the new financial structure actually worked better for us and we were able to secure space on the top floor of the building, critical for our lab.”

Wm. Leonard & Co. persevered throughout the process and successfully negotiated buildout concessions that saved EchoStar over $1 million. EchoStar now has office space with expansion potential that is likely to meet its needs for ten years or more. “Our new offices allowed us to create an environment with lots of energy that flows extremely well and encourages communication among our staff.  We don’t want to move again for a long, long time,” Fagan says, but Wm. Leonard & Co. will continue to monitor EchoStar’s requirements nevertheless.

Visit the EchoStar Data Network website

 

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