"In the context of the Consulate requiring expansion space, these two offices were in a position to implement early cost reductions aligned with today's softer real estate market," says Studley senior managing director Robert Sevim. "We explored numerous options, including the possibility of consolidating both groups onto one larger floor plate and evaluated the North Michigan and East Loop submarkets for viable space opportunities to accommodate this."
Sevim represented the two groups in the transaction and has been acting on their behalf for more than seven years. After analyzing various options, it was in the best interest of the groups to stay put and sign a long-term lease for the current spaces.
"At the end of the day, however, we identified the winning solution as a stay-put scenario given materially enhanced lease terms and conditions, as well as the ability for the Consulate and Cultural Institute to reduce occupancy costs on an immediate basis," Sevim says. "Zeller Realty, the landlord, was both reasonable and collaborative and substantiated the Consulate's and Institute's decision to stay."
The long-term extensions on the leases total 15,245 square feet. The new deal gives the Consulate General of Italy an additional 1,000 square feet to expand on the 18th floor. Zeller Realty recently renovated the lobby, restrooms and common areas. The company has plans in place to infuse more capital into the building.
Michelle Shrader and Janine O'Brien of Zeller Realty represented the landlord.
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