Incyte was starting to grow exponentially and its existing location could no longer house their expanding footprint which now was spread over multiple buildings. Because of years of familiarity with the location, Incyte’s executive team did not want to look very far afield for a new home. Incyte was also facing a substantial capital outlay associated with building new office and laboratory facilities. Incyte had two new FDA approved drugs and determined it wanted its own identity in a branded headquarters.
Tactix spent months looking for and developing alternatives that could potentially house Incyte’s large and costly requirement. We also encouraged Incyte to look outside of Delaware as the tax treatment in other states was more favorable, there were more existing facilities to consider, and incentives from other states would be attractive. First, we developed an extremely attractive location in Delaware County, PA that, taking into account the extraordinary state incentives, proved to be the lowest cost alternative. Then, using this cheaper alternative as leverage, Tactix negotiated a deal for Incyte to convert a former Wannamaker’s Department Store in Delaware, located less than two miles from its existing DuPont location. The new deal included an extraordinary amount of tenant improvement dollars from the landlord which enabled Incyte to minimize its out of pocket costs. Further, by utilizing the large, existing building shell, we were able to cut 12 months off of the project schedule as compared to a “ground up” construction, and save Incyte millions of dollars.