Challenge

Michigan Avenue Neuropsychologists (MIN) was in the ninth year of a 10 year lease when the pandemic was announced. The firm’s principal, like everyone else, stopped using the office on a regular basis. The location of its office building remained ideal, as were other logistics of operating its practice in that building.

This included being to see incarcerated individuals for whom a psychological evaluation had been court-ordered. Most office buildings lack a practical way by which visitors can be brought from a secured vehicle, accompanied by armed security personnel, through the building and to an upper-floor office suite. 65 E. Wacker is perfectly equipped to make that possible.

The ability for MIN to continue to make such evaluations, coupled with the fact that the pandemic had hit, made shopping for alternative space less than desirable. It had become clear that the pandemic was not going to resolve immediately, leaving the office underutilized for, potentially, many more months.

Action

MAP Real Estate was again asked to represent MIN in its office leasing transaction and engaged the building’s broker about potentially renewing the lease. Fortunately, MIN’s program of requirements had not changed over the years, making the existing layout still perfect for its long-term use. That bode well for negotiations with the building owner, because of its heightened interest in putting into place leases that required little construction expense.

During the negotiations, which were able to be quite protracted because the project had begun relatively far in advance of the lease expiration, the pandemic had caused the ownership entity of the building to get into trouble with its lender. Ultimately, the ownership group with which MAP had begun negotiations gave the building back to its lender and a new group assumed control.

MAP rekindled negotiations with the new owner and was finally able to complete negotiation of a 136 month renewal lease, in-place, that included, among other things, a construction allowance that can be converted into a rent credit, twenty months of rent abatement, an option to renew for five years, and a “death & disability” clause for the benefit of the firm’s principal. MAP also negotiated a period of “beneficial occupancy”, allowing MIN rent-free use of its offices for six months prior to the commencement of the new lease term.