Savills Saves CallisonRTKL $7.4 Million in Savings with Favorable Lease Renewal Terms
CallisonRTKL, a global architecture, planning and design practice with 22 offices around the world, occupied their current premises at 1420 Fifth Avenue in Seattle for over 20 years and received a renewal proposal directly from their landlord. Callison, under new management, questioned these lease terms and hired Savills team Eric Blohm and Eric Leland to assist in the negotiations. Upon contacting the landlord, ownership was unwilling to renegotiate the proposal terms.
Savills immediately engaged the market with tours and a comprehensive request for proposals to put the landlord on notice of Callison’s potential intent to relocate. Following that, the Blohm & Leland team negotiated proposals, creating a second option that was economically very compelling for a relocation and allowed for substantial leverage with the current landlord. After minimal responses from ownership, Savills notified the landlord in writing of Callison’s intent to vacate upon lease expiration. Building ownership immediately changed their proposed terms and became eager to retain the tenant.
Savills was able to negotiate proposal terms that reflected a 9.3 percent reduction total costs among other concessions and allowed the tenant to remain in their space and avoid any business interruption for this professional services firm. Callison’s lease terms reflected a $7.4 million in savings on total occupancy cost over the entire lease.