Challenge

Lincoln Financial Group, a long-time tenant in the Northwest Suburbs, occupied three floors totaling 70,000 square feet at Commerce Point, a Class B building located at 3800 N. Wilke Road in Arlington Heights, IL. In 2010, Lincoln hired Colliers International to provide strategic planning and tenant representation services as the company evaluated an early renewal of its lease or a relocation to a new regional headquarters location. Lincoln’s primary focus was to increase space efficiency, reduce occupancy costs, maximize lease flexibility and upgrade their work place environment. Adding difficulty to any potential lease restructure transaction, Lincoln’s current building Owner had limited capital available and it was unclear whether they could actually fund a transaction.

Strategy

Colliers immediately began strategic planning meetings to identify Lincoln’s space program requirements, performed demographic analyses and relocation cost budgeting before surveying and touring the market. After touring the market and developing a short list of relocation alternatives, the Colliers team introduced Lincoln Financial to The Dobbins Group who helped to successfully navigate the space planning, construction cost analysis, and physical construction aspect of the project. With a firm understanding of the costs associated with relocation, Jason leveraged a renewal against a relocation to generate best and final offers with each building.

Services

The Colliers team provided tenant representation services including in depth market review, strategic planning and financial analysis.

Results

After eight (8) months of evaluating a lease restructure versus relocation, in July 2011, Lincoln Financial executed a lease to relocate its regional headquarters to two full floors, totaling 47,364 SF at Continental Towers at 1701 Golf Rd in Rolling Meadows, IL a 910,000 SF Class A complex. The Colliers team was able to help Lincoln reduce their space requirement by 32% and their average annual operating costs by 45% while also relocating Lincoln Financial to a building with Class A amenities and finishes. Lincoln’s Chicago office is currently thrilled with their new space and Lincoln’s leadership is even more thrilled with the upgraded facility and dramatically reduced real estate operating costs.