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Nexcycle

Nexcycle Plastics Inc, (NPI) is a plastic recycling company supplying polyolefins and specialty polymers to the plastics industry. In addition to its products, Nexcycle also provides a host of related services, from custom grinding to dandifying, blending and palletizing post-industrial plastics.

The Challenge

Nexcycle asked Savills Studley to maximize the value of its three facilities, which included two leased spaces and one owned property. After evaluating Nexcycle's business operations, Savills Studley determined that the company had surplus real estate. However, significant capital had been invested in the existing facilities, which made relocation a costly and impractical solution. While it was evident that downsizing space was required, the challenge lay in removing any notion amongst the two landlords of captive tenancy and finding an ultimate solution that would provide growth and flexibility well into the future.

Savills Studley’s Response

As the first step in its process Savills Studley completed thorough analyses of both the existing leases and Nexcycle’s ongoing business strategy. Savills Studley then researched multiple solutions within close proximity to the existing locations. As Savills Studley was open with the landlords about the search, this process created a negotiation environment in which both landlords were forced to compete for Nexcycle’s tenancy along with other available options.

The Solution

The strategy paid off. Savills Studley successfully secured a 10-year renewal at rental rates well below both market and the rent Nexcycle paid under its previous term. Savills Studley secured its client’s required flexibility by physically expanding space in one of the buildings and negotiating an option to terminate after five years should Nexcycle’s need for space decrease.

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Key contacts

Stan Krawitz

Stan Krawitz

Vice Chairman – Founder, Head of Canada

Savills Toronto

+1 416 480 0745 Ext. 3030

 

Ken Norris

Ken Norris

Senior Vice President, Branch Manager – Ontario Office

Savills Toronto

+1 416 480 0745 Ext. 3047

 

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