Zeltiq, a public medical device company in the aesthetics space, has experienced rapid growth thanks to global commercialization of its CoolSculpting technology. Since 2015, we’ve operated as Zeltiq’s outsourced real estate department, saving them millions of dollars and optimizing their global locations to better serve employees and customers.
Zeltiq has access to a bench of real estate experts for 1/3 the cost of hiring a full-time employee.
In 2015, after hiring 125 employees and bringing its worldwide headcount to 550, Zeltiq considered hiring a head of real estate and facilities to manage the company’s growing global footprint.
Up to that point, the company’s General Counsel and VP of HR had led Real Estate and Facilities, which required more than two hours a day for him to manage, resulting in roughly $140,000 of lost productivity per year.
After evaluating Zeltiq’s business objectives and organizational structure, we proposed an ongoing engagement where we served as Zeltiq’s outsourced real estate department, reporting to the VP of HR. Serving as an extension of the company’s leadership team, we created a framework to help the company scale.
Our team provided ongoing capacity planning, selected and implemented space management software, and created a five-year global strategic plan, initiatives that led to approximately 300,000 SF of global transactions. We also implemented a global design and construction standard for each of Zeltiq’s new offices.
Our engagement with Zeltiq gave the company access to T3’s deep bench of subject-matter experts for a third of the cost of hiring a full-time employee. Zeltiq also saved significantly on facilities expenses by reducing its footprint from 325 SF per employee to 250 SF per employee.
Our oversight of Zeltiq’s domestic and international transactions has helped the company stay within budget and negotiate terms that better align with their key business drivers. And our forward-thinking, proactive, and cost-effective strategic plan has improved both the employee experience and access to customers.
Incentives and an off-market space we procured in Ireland saved Zeltiq nearly $2 million in capital expenditures.
To manage pressure from investors and its growing global customer base, Zeltiq needed to find the optimal location for manufacturing and customer training centers throughout the world. We partnered with Zeltiq to identify the best locations from a talent, customer, and cost perspective.
We took a data-driven, transparent approach to evaluating various global markets and identifying the optimal location for Zeltiq. Our team visited every city being considered, serving as an extension of the company’s leadership team. And through every step of the process, we worked to ensure that Zeltiq’s global real estate strategy aligned with its critical business drivers.
We partnered with Zeltiq to open global training facilities in California, Virgina, and Barcelona that reflected and amplified the Zeltiq brand. These facilities supported incredible international consumer growth leading up to the company’s $2.5 billion acquisition by Allergan in 2017.
We also worked with Zeltiq to procure incentives and a new facility in Galway, Ireland, allowing the company to bring its consumable manufacturing in-house. Our transparent approach led to an off-market solution that saved Zeltiq nearly $2 million in capital expenditures.
Zeltiq’s headcount continued to grow as the company scaled internationally. The company is headquartered in Pleasanton, California, and was at an inflection point where they could spend $1.2 million to retrofit their existing facility to accommodate their short-term growth, or relocate to a new headquarters. The company had a prior relationship with a broker, who was also representing the owner of their building, creating misaligned interests for Zeltiq.
Because our T3 Life Science Team focuses exclusively on representing life science tenants—and never represents landlords—we were able to provide Zeltiq with in-depth headcount forecasting and capacity planning. We identified a variety of scenarios for both short-term and long-term growth, validated with meaningful data. T3 led the relocation from start to finish, overseeing design and construction of Zeltiq’s 140,000 SF global headquarters and customer center.
The relocation scenario we procured for Zeltiq helped the company meet its short-term and long-term goals. This deal provided Zeltiq with maximum flexibility, minimized the P&L impact associated with real estate, and enhanced the workplace for both employees and their customers.