IHS Markit Continues to Rely on Savills Keen Understanding of the Real Estate Industry and its Hidden Opportunities
IHS Markit (formerly known as Markit), a global provider of financial information services, had initially retained Savills to advise the firm on its first New York City office location in 2004. At the time, Savills negotiated a 5,000 square foot lease at 7 Times square for the young firm. Over the ensuing decade, IHS Markit experienced rapid growth, both organically and via acquisitions. Within two years, Savills negotiated for a 32,000 square foot floor at 620 Eighth Avenue/The New York Times Building. A few years later, after an acquisition of a portion of the operations of the Depository Trust & Clearing Company, IHS Markit found themselves in 80,000 square feet split among multiple floors between two buildings which could no longer accommodate their continued growth. A long-term solution was critical.
Almost 10 years after the opening of its first New York office, IHS Markit again approached Savills to provide a solution to their fragmented space dilemma. Though relocating the company into four or five floors within the same building would alleviate the disconnect of having two separate offices, IHS Markit believed that option still left their company too disjointed. IHS Markit’s goal and vision became to relocate to one contiguous floor that would accommodate their entire U.S. headquarters comprised of over 1,000 employees.
Based on the client’s strategic direction, Savills performed an in-depth study of every building located throughout Manhattan that had the capacity to accommodate their space requirement. From this, they determined that there were only ten buildings with floorplates of over 100,000 square feet, enough space to accommodate their objectives. While most of these buildings were “warehouse-type” buildings, Savills knew that the landlord of 450 West 33rd Street, Brookfield, was about to undergo a $250 million redevelopment of one of these “warehouse-type” buildings to become a new Class A corporate headquarters adjacent to Hudson Yards and the Highline, creating an exciting opportunity for IHS Markit.
Having overcome the challenge of identifying buildings that could accommodate 140,000 square feet on one floor, Savills negotiated favorable terms for IHS Markit, including the ability to double in size onto an adjacent floor. In addition, Savills secured financial terms that were superior than the previous two deals recently closed in the building. Markit has since merged with IHS to form IHS Markit (NASDAQ:INFO) a global leader in providing information, analytics and expertise to business leaders.