Carlton Fields PA (Miami, FL)
Carlton Fields had occupied space in Bank of America Tower for almost 10 years, during which time the firm had expanded numerous times. In 2006 with nearly four years remaining on its lease, the firm was anticipating the start of another long-term expansion phase, which could have been difficult to accommodate under the existing lease structure. Studley (now Savills Studley) advised Carlton Fields to enter the market at this time because two of the building’s other large tenants were considering relocation and several new buildings were proposed. Regardless of whether Carlton Fields decided to stay or relocate, its leverage would be maximized.
In negotiations with the landlord, Studley stressed the importance of Carlton Fields being the building’s most significant tenant, representing almost 10% of the building at the time. This approach allowed Studley to control the competitive landscape and secure favorable terms for the firm, based on overall economics and future rights to additional space, before third parties were yet in play.
Studley was able to accomplish a number of the objectives established from the outset including: the favorable economics of the lease, future flexibility including expansion and contraction, and building identity.
The firm received a favorable net effective rent based on an above-market tenant improvement (TI) allowance, which was to be used to renovate its current space with a more updated, efficient space plan. In addition, the TI dollars were not restricted to the respective renewal or expansion spaces, but could be commingled. Future flexibility was satisfied through rights to all available space within the firm’s elevator bank, which was reserved for Carlton Fields through a variety of encumbrances. Finally, the landlord committed to providing the firm with prominent signage located on a new monument sign directly in front of the building.
Bank of America Tower at International Place,
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