Johnson & Higgins occupied 137,789 square feet at
the Century Plaza Towers. The lease had four years remaining,
at rates substantially higher than the market. The client
wished to reduce fixed operating costs by renegotiating
and extending its lease.
We knew that the landlord was positioning the building
for sale, and that an extended lease commitment by our
client would enable the landlord to maximize the sale
value. Through a series of negotiations, we agreed to
a longer term lease in exchange for a $5.8 million reduction
in rent during the four-year remaining term. The resulting
rental rates, concessions and tremendous flexibility
to expand and contract subsequently enabled the client
to sublease and later buyout the entire lease at a zero
net cost to the client following a merger with Marsh
& McLennan.
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