Savills Wins Generous Terms for Leading Malaysian Bank in Lease Renewal and Expansion
The Clearing House Payments Company LLC (“Clearing House”) clears and settles more than 65 million transactions with a total value of $2 trillion each day, which is nearly half of the daily fund transfers and check image payments in the United States. Clearing House’s executive office and data center were in a building about to undergo a major renovation which would be disruptive and potentially dangerous to their critical infrastructure and technology systems. In addition, the renovations and upgrades to the building would have priced Clearing House out of the building upon their lease expiration several years later.
The landlord of 400 Park Avenue was investing significant capital into the building for new elevators, windows and an upgraded lobby, and wanted to increase rents commensurate with other top Park Avenue buildings. As the premier Malaysian bank, Maybank’s preference was to retain a prestigious Park Avenue address. The issue was that Maybank’s current landlord was attempting to achieve an above market deal as Maybank appeared to be a captive tenant. Savills and Maybank spent the next 6 months surveying every available space, including a number of off-market options, which would suit their needs while maintaining a dialogue with their current landlord. Savills completed taking Maybank through the process of identifying viable alternatives and neared final term negotiations at three other buildings. At that point, the current landlord took notice and asked what needed to be done to retain Maybank’s tenancy.
Savills was able to negotiate an expansion to the entire 11th floor at a below market rent and an above market concession package. The effective cost of the transaction was 17% less than the cost of a lease transaction just completed by another bank on a lower floor in the same building. The generous work allowance secured by Savills resulted in no out-of-pocket expense for Maybank in its construction of a high-end office installation.