Exelon

Client Situation

Studley (now Savills Studley) was engaged by Exelon Corporation to assist in its Chicago-area facility evaluation, including strategy and implementation phase. The project addressed how best to approach 1.25 million square feet of office space within eight different locations.

Consideration Analysis

Studley’s goal was to identify the appropriate location for the client’s operations, including Exelon’s headquarters within the suburbs and downtown, while consolidating the number and size of the facilities, but still providing future flexibility. The solution was a downtown core location in addition to two suburban core locations.

Result

The project resulted in a lease agreement for the consolidation of Exelon’s three downtown locations into 255,000 square feet in the high-rise portion of Chase Tower. Throughout the process, the Studley team provided guidance to the Exelon team consisting of the chief executive officer, the president, the chief administrative officer of Commonwealth Edison, the director of real estate and the real estate portfolio manager. Studley’s recommendations yielded significant cost savings, and the newly developed space achieved the highest level LEED certification, platinum, becoming the world’s largest platinum certified commercial interior.

Some of the environmental benefits of the space include:

  1. 43% reduction in electricity consumed
  2. Recycling or salvaging of 75% of construction waste
  3. Re-use of 31% of resources
  4. Optimized use of natural resources
  5. Improved work environment for all employees
  6. Minimal const premium for installation and savings when considering re-use

Shortly thereafter, Studley assisted Exelon in the expansion of a contiguous floor which became available unexpectedly. The terms negotiated were 20% lower than the lowest competing property.

Summary Information

  • Property: Chicago, IL
  • Transaction Size: 282,000 SF
  • Transaction Type: New Lease
  • Service Line: Office