Attorney Registration & Disciplinary Commission (“ARDC”) had a lease that was expiring in May 31, 2008. They came to Colliers International in June 2003 and asked us to help them renegotiate their fifteen-year lease early. They were in need of additional tenant improvements that they did not want to fund and wanted to enhance their expansion flexibility so they could continue to stay at Prudential Plaza. They like the location very much and has a very expensive infrastructure that was cost prohibitive to relocate.
The Landlord was in the process of losing Deloitte & Touche and we knew that Landlord has a fair amount of tenant with lease expirations coming up in the next five years. The Landlord was concerned about losing another tenant and wanted to try to stabilize the building’s long-term tenancy so that is they sold the building they could maximize their value.
Through six months of negotiating and demonstrating to the Landlord their potential risk through our Blend & Extend analysis, we were able to prove to the Landlord that reducing the rental rate of $2.00 - $3.00 per square foot over the remaining five years of the lease and extending the existing lease seven years would enhance the value of the building. Additionally, we were able to get the client $7.00 per rentable square foot to make cosmetic changes to their space and enhance their flexibility with renewal and expansion options that assured ARDC had a long-term home.
In 2011 the Landlord came to ARDC and wanted to recapture 15,224 s.f. of their space on the 11th floor. After negotiating with the Landlord for 15 months we were able to gain over $3.2 million in concession for ARDC and extend their term through 2027.