Location: New York, NY
Industry: Real estate
Professional Services – large
Senior Managing Director
DONE DEAL: The Teachers’ Retirement System of the City of New York (TRS) was 11 years into a 16-year lease for 160,000 square feet at 55 Water Street. “Its rent was significantly above market, its member services center was too small, and the layout of that space was not ideal, preventing TRS from providing best-in-class services to its members, whose needs had evolved and grown,” says Bill Montana, senior managing director of Savills Studley. The firm began by leading TRS through a comprehensive strategic planning process involving all important stakeholders. A team of project managers, architects, engineers and other consultants and vendors was assembled. Together, the stakeholders explored potential relocation alternatives in the market, identified the best candidates and vetted the economic factors.
Fun Fact: “We go on extraordinary trips around the world every January to have fun, to bond, to learn from each other and to share best practices.”
BIG IMPACT: Using the alternative buildings as leverage, Savills Studley was able to convince TRS’s existing landlord to address all of TRS’s requirements. Once negotiations were complete, Savills Studley provided support to TRS to get approval from its board members and other important stakeholders to proceed. A lease amendment was negotiated and executed. As a result of the amendment, TRS was able to add 30,000 square feet of additional space located directly adjacent to its existing space. Its rent was lowered immediately by more than $1 million a year, more than three-and-a-half years in advance of its existing lease expiration.