Portfolio Company - Chicago
A national private equity portfolio company was preparing to renew an existing 34,000 SF office/warehouse lease for its branch office location in Chicago. The building was owned by the former owner of the business.
The situation was delicate in that the relationship with the former owner of the business was still amicable, however, the elevated rental rate that the owner enjoyed for the initial lease term needed to be brought back to par with the market.
WWM negotiated a lease renewal at an annual savings of $117,000, and a 5-year lease term savings of $585,000. By allowing sufficient time to create leverage within the negotiations, WWM was able to demonstrate to the former owner that relocation was both a realistic and cost effective option for the Chicago office. As a result, the owner saw that it was in his best interest to renew the lease at market value, which was a significant discount from the previous rate.