DELL Computers

Frankfurt, Germany 180,000 sqft dell.com

Services Provided: Asset Management Tenant Services Site Selection Services

Dell Computers is a world leader in computer hardware and software, powering businesses and consumers in just about every market on the planet.

Overview

IPG was contracted to act on Dell’s behalf to support one of their largest EU expansion efforts.

IPG Services Provided

Infrastructure Analysis
Staff Location, Analysis, and Travel Times
Complete Market Overview
Detailed Property Analysis and Cost Comparison
Architectural Space Planning for All Choices and Options
Negotiate with The City of Frankfurt

Assignment & Process

IPG team was tasked with securing a leased building in a yet-to-be-defined location.
The location needed to have excellent infrastructure and the potential for scale up or down, as required.
Dell’s new facility in Frankfurt was to become its new global sample office and product showroom.

The Challenges

Representing and counterbalancing the interests of the local Dell Management, the workers union and the regional office

Developing healthy competition between the landlord of Dell’s present site and several potential new landlords

Ensuring a seamless transition as Dell could not experience any downtime, which had many risks

Perhaps one of the biggest challenges was representing and counterbalancing the interests of the local Dell Management, the workers union, the UK-based European regional office, and the US-based headquarters. Each faction had their own thoughts about the project, so we needed to find balance. Ultimately, everybody needed to be on the same page to ensure an expedient process.

We also needed to develop healthy competition between the landlord of Dell’s present site and several potential new landlords, including TSP.

We needed to ensure a seamless transition as Dell could not experience any downtime. Risks arose stemming from multiple former service providers, causing distractions that could have resulted in service interruptions.

The Success

The project was concluded successfully and on time

The management, the staff, and the local union representatives were utterly thrilled

The ability to secure extensive tax benefits and other incentives from the city of Frankfurt

We concluded the project successfully and on time, without any server “time-outs” during the move from the old site to the Frankfurt Airport. We did so by leasing space at Tishman Speyer’s Main Airport Center to support the transition.

The management, the staff, and the local union representatives were utterly thrilled with their new facility.

Better still, we were able to secure extensive tax benefits and other incentives from the city of Frankfurt, which is something that they had never authorized before.

180,000 SF of Space Secured For Ten Years
Achieved Substantial Tax and Location Incentives and Benefits Secured an Option for Additional Space and/or the Return of Unused Space to Landlord
50 percent Savings on Lease Term: € 4.5
Tax and Incentive Savings: € 8 Million
Total Savings for Dell: € 12 Million.
Due to the success of this project for Dell, we were awarded new projects in Halle, Lodz, and Bratislava.