The Fram division of Honeywell was an original tenant in Union Carbide’s corporate headquarters beginning in the late 1980’s. Two years prior to its lease expiration, this division of Honeywell wanted to downsize from 39,000 square feet to 10,000 square feet and eventually shrink even further. Unbeknownst to the landlord, the Fram division was being sold.
Savills Studley was hired to reduce the footprint and the occupancy cost immediately and going forward, and ultimately lease less space. In order to effectively renegotiate its current lease, Savills Studley did a complete market survey, toured numerous properties with the client, and began negotiation on several of them. A short list was created including the stay-put opportunity recasting the original terms. To further complicate the situation, all of this work had to be analyzed and accomplished without the existing landlord or employees knowing of the pending sale.
As a result of putting this Honeywell division “in play,” Savills Studley was able to negotiate a very favorable new lease at the existing location. The final deal stipulated an immediate size reduction to 20,000 square feet and an eventual reduction to 10,000 square feet on a series of one-year leases. At the end of the first year, this division only needed 5,000 square feet, and the flexible lease arrangement created by Savills Studley allowed for appropriate resizing.
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