Challenge

Hireology, a fast growing technology company based in Chicago’s River North neighborhood, had grown from five to 35 employees in its first two years.  With plans to triple headcount to over 100 people over the next three years, Hireology needed to evaluate options throughout the Chicago market and quickly identify a new headquarters facility that would accommodate its explosive growth. Hireology had two main priorities in selecting new space.  The first priority was to preserve cash as working capital for the business versus utilizing those funds toward the purchase of furniture, fixtures, equipment or construction of the new space. The second priority was to secure a short-term lease with maximum flexibility including expansion options, a termination option and tenant-favorable sublet and assignment provisions in the event Hireology outgrew the space quickly or was acquired by a strategic buyer who didn’t need the real estate.  Colliers International was hired to assist with this initiative.

Strategy

Before surveying and touring the market, the Colliers team analyzed Hireology’s space program requirements, performed demographic analyses, and prepared relocation cost budgets.  With a lack of available space in the River North market, the Colliers team focused Hireology’s search throughout the entire downtown market. After developing a short list of relocation alternatives that included 303 E. Wacker Drive as the top choice, Colliers began negotiating with multiple buildings to create leverage.    

Results

In just 90 days, Colliers was able to secure a new short-term, 52-month lease at 303 E. Wacker Drive, a Class A property with numerous amenities and existing conditions that closely matched Hireology’s space requirements. As part of the transaction, the landlord paid for construction costs and all of Hireology’s furniture, fixtures, phone and data cabling/equipment, allowing Hireology to preserve its cash as working capital. Additionally, Colliers negotiated favorable expansion rights for the remaining 15,000 SF on the floor, a termination right, renewal option and a reasonable security deposit, making 303 E. Wacker Drive the obvious choice for Hireology’s new headquarters location.