The Challenge

When we began working with Pegasystems, the company’s Cambridge headquarters was spread over six floors in an inefficient layout and design that restricted collaboration. Pegasystems also faced challenges related to its HVAC, lack of meeting space, and limited collaboration among its engineering team. To support its continued growth, Pegasystems needed to relocate to a new headquarters that would allow it to increase its headcount, and needed to do it it with minimal financial impact.

Our Approach

Our team led a comprehensive two-year headquarters analysis and evaluation process that included:

• Forming a Headquarters Steering Committee. This committee would inform Pegasystems executives on other new HQ workplaces, tour properties, and formulate a headquarters mission statement
• Financial planning and P&L impacts
• Evaluating and selecting project team partners, including for design, engineering, and construction
• Negotiating for 6+ months in the market after objectives and financial planning was complete

The Result

We helped Pegasystems secure a 15-year lease at One Rogers Street in Cambridge, a move that received an overwhelmingly positive response from employees. Our team’s planning, advisory, and aggressive HQ deal for Pegasystems resulted in the following for the company:

• The company was able to vacate its existing HQ early through free rent incentives.
• At $20-$25/SF under market, Pegasystems’ is one of the least expensive existing lease deals in Cambridge’s Kendall Square.
• Through favorable expansion rights, Pegasystems was able to expand to a total of 240,000 SF at One Rogers Street.
• The new headquarters reduced Pegasystems’ private-to-open office ratio from 50 percent to 30 percent, helping transform the company’s culture and increase collaboration.