Challenge

In 2010, RSM McGladrey was going through a corporate restructuring and was looking to change their space standards nationally as well as their culture and branding.  Colliers had just recently represented them in restructuring their lease in Schaumburg for 51,616 sf by leveraging their early termination option. Colliers knew that McGladrey had a similar termination option at One South Wacker after year 5 of a 15-year lease.  The concern was they were not willing to pay any penalty to restructure their lease.

Approach

We immediately focused in on implementing the new company standards to gain an understanding of the efficiencies we could garner and were able to reduce their square footage from 168,854 sf to 131,871 sf.  Based on this program we immediately looked for existing alternatives that did not have an anchor tenant, would lend itself to an open layout and would be willing to let McGladrey have building signage rights.

 

Results

After effectively leveraging the market, we were able to get One South Wacker to allow McGladrey to reduce their square footage by 36,983 sf from 168,854 sf to 131,871 sf, provide McGladrey with $20.00 per square foot to retrofit their space without having to extend their existing lease term or pay any termination option.  The savings over the remaining lease term were over $10 million.  We were also able to get the building to agree to provide them building signage for their new company branding.