Savills Wins a Modernized Location for Nonprofit Global Compact to Improve Workplace Efficiency and Collaboration
The Foundation for the Global Compact (“Global Compact”) is a non-profit entity which provides vital support to the United Nations Global Compact projects, helping advance corporate change and innovation around environmental, social and governance issues such as climate change and slave labor. Global Compact occupied space on two non-contiguous floors at 801 Second Avenue as well as space within the United Nations complex on First Avenue. As their lease at 801 Second Avenue approached expiration, the Global Compact hired Savills as an advisor.
Global Compact wanted to consolidate their two locations in order to improve their workplace efficiency and collaboration. In addition, Global Compact was occupying extremely old and inefficient space at 801 Second Avenue that needed to be completely rebuilt. Most importantly, they needed to stay within 5 blocks of the UN facilities. As such, Savills began an exhaustive search of all buildings in the immediate surrounding area for both on and off-market space that could accommodate Global Compact’s needs.
In the early stages of a search that took 12 months, Savills identified a newly renovated building with a large vacancy at 685 Third Avenue, which met all of the client’s criteria. Due to a real estate market that was seeing increased demand and pricing, Savills identified a nearby sublease as a backup alternative which provided much needed leverage in negotiations with 685 Third Avenue, as the landlord began to become more bullish in its market outlook. Ultimately, Savills negotiated a significantly below-market lease at 685 Third Avenue as the landlord recognized the strength and creditworthiness of Global Compact. Savills convinced the landlord to fully fund and build a high-end interior for Global Compact. The subsequent leases signed at the building were at rents 20% higher.