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SCHENK ANNES TEPPER CAMPBELL RELOCATES AND RENEWS AT 311 S WACKER DR
Chicago, IL – November 16, 2012 – Chicago-based law firm Schenk Annes Tepper Campbell Ltd. recently renewed their lease and will be moving to new space of approximately 9,000 rsf of space at 311 S. Wacker Dr.
Schenk Annes Tepper Campbell Ltd. (SATC) has been a tenant at 311 S. Wacker Dr. since 1997. As the firm grew and took additional adjacent space, however, its office configuration became awkward and inefficient. “In a market like the current one, a tenant like SATC is pure gold: they’ve been a reliable tenant for 15 years and are actually growing when other firms are shrinking,” said Rhea Campbell of Bella Terra Partners, who represented SATC in its lease negotiations. “This is why I was not surprised that several other West Loop buildings negotiated hard for their tenancy.” Only when the firm committed to an exhaustive full-market search and decided they were fully prepared to leave the building did 311 S. Wacker offer a compelling deal structure, making a renewal not the path of least resistance, but rather a perfect fit. “SATC was able to grow by the amount needed to accommodate its new partners and associates as well as to create efficiencies that …
Read more...WHEN IT COMES TO YOUR OFFICE SPACE, IS IT REALLY BEST TO JUST “STAY PUT”?
In the last few years we’ve helped our clients renew their office leases more often than we’ve helped them acquire new office leases. Why, you ask? Some of our clients have thought it too risky to move to another location and commit to a longer lease, complete a full interior build out, and interrupt their business operations; others have simply opted for the path of least resistance at a time of great uncertainty about the future. Some have found themselves with reduced credit capacity, which has made acquiring new office space and posting a Letter of Credit difficult or impossible. Others have simply not had the mental capacity or human capital to think long term about their business, brand, and talent needs.
BUT, IT’S EASY.
The landlord has made these types of transactions relatively easy and attractive to these tenants by crafting, in partnership with the tenant’s professional, “blend and extend” solutions. “Blend and extend,” as it’s known in the office leasing market, is the name given to the process by which a landlord renews a tenant with unexpired term on their lease by blending the unexpired term with the new term. The tenant is happy because they …
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This entry was posted in Commercial Real Estate, Landlord Financial Issues, Lease Renewals, Tenant Representation, Workplace Strategy. Bookmark the permalink. |
IT’S JUST A ROUTINE LEASE RENEWAL
By underestimating the economic benefits to be gained from a routine renewal, tenants may miss a major cost-reduction opportunity.
Landlords are acutely aware of the difficulty tenants have in moving and will look to use this awareness to their advantage. The decision to renew or relocate should not be made solely on the basis of per-square-foot rental costs. Tenants need to evaluate “remain-in-place” issues such as:
- What’s the difference in required space needs at the current building vs. a relocation?
- What ability exists to upgrade the existing space for technological improvements and what capital is required to do so?
- What disruption to business will present itself during any renovation or upgrades to the space?
- What ability will remain to reshape the organizational image or culture, if desired, in the current space?
- What expansion opportunities exist in the current space?
- What opportunities exist to amend an existing lease and how can the tenant take control of the negotiation timetable?
Landlords believe they operate from a position of strength in a renewal negotiation because they perceive they have better market knowledge than the tenant, control of the process and timetable, and an appreciation of the tenant’s “inertia” and the real cost of …
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This entry was posted in Lease Renewals and tagged Commercial Real Estate, Lease Renewals, Workplace. Bookmark the permalink. |
