Panasonic Canada Inc. Is the Canadian sales arm of Panasonic Corporation, a leading supplier of electronic equipment to both commercial and consumer markets throughout the country. With offices across Canada and sales exceeding $903 million (2007), the brand names Panasonic and Technics have become permanent fixtures in Canadian homes and businesses.
Panasonic was paying above market rental rates on an existing 242,000-sqare-foot industrial warehouse in Mississauga, Ontario. While Panasonic was pleased with the quality of the building, the company was in the middle of acquiring SANYO Corp. while experiencing the effects of the global recession of 2009. The lease on the warehouse was to expire in 24 months. These conditions prompted Panasonic to retain Savills to renegotiate its lease prior to lease expiry in an attempt to save money. As Panasonic was uncertain about what would be required of the warehouse in the future, it was critical that the lease contained as much flexibility as possible.
The renegotiation process would be complicated. Both the warehouse and Panasonic's management team were located in Canada while the decision-making team was located in the U.S.
First, Savills conducted a comprehensive analysis of Panasonic's business needs (short, medium and long term). They then conducted a thorough study of the existing space as well as comparable spaces in the local market to give Panasonic a strong position at the negotiation table. During the process, Savills was fastidious in keeping both the Canadian management team and its American counterparts fully informed about their findings and the steps they intended to take on Panasonic's behalf.
Using the recession as a backdrop for its negotiation process, Savills successfully won a reduced rental rate that met both Panasonic's business and economic needs and allowed them to keep the high-quality industrial space they needed to fulfill all their intricate logistical requirements.