Terri Jackson, Workplace Consultant and Corporate Real Estate specialist for Atmosphere, and Matt Prince, Financial Sales Consultant for Steelcase discuss how to move a project forward with our Financing and Leasing options, including new terms and segment trends.
This post is part of our ongoing exploration into workplace strategies in a post-COVID environment.
Transcript
Terri: Hi everybody, I’m Terri Jackson with atmosphere commercial interiors I am here today with Matt Prince from Steelcase and we thought it was a good time to do a quick refresher on Steelcase’s very unique financing and leasing program, as we are all now just barely starting to think about coming back to the office.
I like to say July is the new January instead of coming back in January. Most companies are now looking at a June-July time frame as far as their return. One way we can certainly help you move that project forward is through the Steelcase financing program, and we’ll talk to you a little bit about leasing as well. Matt welcome.
Matt: Thank you, Terry. It’s good to see you again. Happy Holidays.
Terri: Thank you. You too. So, Matt tell me briefly about the financing. We’ve got a great interest, rates and a good promo for three years happening right now.
Matt: Yeah, what changed since last time we spoke is our promotion that we’ve had for several years now, which is a zero percent promotion. We upped it and we went from a two-year term to a three-year term.
So now customers acquiring any Steelcase or Steelcase ancillary products can get a rate of 0%, which is well below anything else that they can get from the market. Regardless whether it’s another manufacturer or their bank. And then we still of course also have our traditional leasing where a client can look at refreshing their space.
We’ve been getting a lot of interest lately in the last several months from design firms from real estate companies, building management companies—that want to attract incoming tenants, and they want to do so by providing smart-type spaces that in several years they can refresh product and get new product in.
So, it’s been a great time for leasing and financing. We’re going gangbusters with COVID and that out there. Customers again are looking at holding on to their cash, and using cheaper additional sources of cash which, who can get cheaper than 0%? So, it’s been a good time.
Terri: Nobody can match, just you. So, I love it. Just to remind everybody right now, Steelcase has an offer, if you qualify, which you probably will, 0% interest rate for three years.
This also applies to building owners, developers, people like that, doing spec suites. We know we’re going to see an uptick, in spec suites’ popularity moving forward, and what I’m hearing is that tenants are going to go for it, you know.
There’s a flight to move-in-ready space. So, the 0% interest rate is awesome, as Matt said on the leasing program.
If you are looking to entice employees back to the office—which everybody is—but you don’t necessarily know what your long-term real estate strategy is, leasing, which is essentially rental program—but it’s beautiful new product, the whole Steelcase, you know all of our brands, what-not—this is a great way for you to lease furniture for maybe a year or two of your subleasing, and you can refresh your environment, bring people back (sort of) kick the can down the road, so to speak.
Think about your long-term strategy without … investing in owning more furniture.
Matt: Absolutely. Where you’re paying to use it and you’re not paying to own it, so it’s a great opportunity.
Like you said, kick the tires and at the end of the term, you can refresh, or you can renew the lease, if you want to renew the lease. So [that] pretty much covers all bases for customers from wanting to own on dollar-type leases, to customers that just want to use or get different tax benefits by going on a fair market value lease—cover all worlds for all people.
Terri: That’s how we do it. Atmosphere and Steelcase, right? Yeah, everything to everyone. Thank you, Matt. So great to see you!
Matt: Hopefully we’ll continue doing this in better times. And you know what, next time maybe will have 0% for four years.
Terri: I will be in person, we’ll at least be in the same room together next time, right?
Matt: Exactly.
Terri: Thank you, Matt. Take care.
Matt: Thank you. Bye bye.