Savills Helps Healthcare Group Overcome Strict Requirements to Relocate
Consorta is a cooperative business entity that supports the mission of its shareholders – nationwide Catholic Hospitals. Consorta develops shared services that help its members manage costs and improve service quality. The firm had experienced tremendous growth since it was founded so its current space no longer met its size requirements. Consorta hired Savills to locate a larger site for its offices in a higher quality building.
Savills developed an aggressive timeline to allow Consorta to relocate its offices within several months of the project’s commencement. At the time, the northwest suburban market had been experiencing record high vacancy rates generating intense competition between buildings. Savills examined Consorta’s business and human resources concerns as they related to real estate. As a result, Savills was able to provide detailed information on properties that could accommodate Consorta’s needs owned by landlords capable of assuming Consorta’s remaining lease obligation. Consorta focused on one new project - Schaumburg Corporate Center III - which had been 85 percent vacant for almost three years.
Savills was able to obtain a lease package for Consorta that met all of its stated requirements: 1) a new building that provided a professional image and had room for growth; 2) a full assumption of the remaining lease obligation; 3) a tenant improvement allowance sufficient to build out the space, including telecom and computer installations; 4) a redecoration allowance midway through the lease term; 5) moving and planning allowances that fully covered those upfront costs; 6) one year of gross rent abatement; 7) extensive indoor parking; and 8) exterior monument signage. In addition, Consorta retained multiple expansion rights including a contraction and termination right. The transaction Consorta secured was 32 percent better than the next best transaction in the market place, providing a rental rate that over the lease term will be nearly $2 million less than any other project in the market.