NEGOTIATING COMPLEX LABORATORY LEASE, PURCHASE, AND BUILD TO SUIT
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Schlumberger, the world’s leading provider of technology for drilling and processing for the oil and gas industry, wanted to move its Doll research center closer to centers of scientific research and technology innovation. After initially working with several brokerage firms, Schlumberger’s Special Projects leader hired us as his exclusive broker to help identify and evaluate sites, help assemble a Boston-based project team, and negotiate the business terms at the selected property.

The new building would contain highly specialized labs, a dining room for all its research staff, original artwork, and a central convening area for hosting events.

Schlumberger had four real estate goals, which combined, would be hard to meet: expansive floor plates greater than 1 acre, no more than a 10 minute walk to a great university, property ownership rights, and a build-to-suit construction timeline providing occupancy within 30 months.

We matched the goals of one institutional landowner – who valued the credit worthiness, the brand, the research activities, and the long-term stability that Schlumberger could offer – and who had a fully permitted and designed land parcel next to an existing building. We structured a transaction for a build-to-suit that co-joined the existing office building with new lab construction, thereby achieving the large floor plates. Because of goal alignment between the parties, the owner was prepared to convert its ownership structure to a condominium, thereby providing Schlumberger with conversion rights to purchase its building after several lease years.

Schlumberger committed to a 190,000 build-to-suit lab in Kendall Square under a multi-decade lease containing purchase rights. The lab is a 5-minute walk to the MIT campus.