Client:

  • Illinois Department of Transportation – A GOVERNMENT AGENCY
    233 S. Wacker Dr.

Assignment:

  • Illinois Governor passed mandate requiring two Government agencies to co-locate and ultimately become one new agency.
  • No Business Interruption irrespective of where co-location occurs.
  • Achieve desired layout, increasing square footage while reducing overall occupancy costs of the respective agencies while practicing “environmentally friendly” space issues.
  • Construct significant lease flexibility to allow both tenants to align their facilities with uncertain future space requirements.

Strategy:

  • Based on both entity’s budgets and location parameters, examined all Class “A” and “B” building options with both direct and sublease opportunities.
  • Determined minimum rent structure using proprietary financial information on short list of buildings.
  • Create more efficient space plan causing total future square footage to be less than both Tenant’s current square footage combined; Economies of scale.
  • Manipulate fixed expansion and termination options in soft market .

Benefits Achieved:

  • Reduced per square foot rent costs approximately 16% while expanding square footage approximately 20%.
  • No out of pocket costs to tenant: obtained over $1M of furniture.
  • Achieved most efficient layout with organization’s changing functional needs; received Gold status for LEEDS (environmentally friendly “green” space).
  • Acquired maximum lease flexibility: New agency is able to terminate the lease early.