Case Study

Chubb

A Belief in NYC Manifests with a Headquarters Commitment

November 1, 2021

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Overview

Chubb took advantage of an unstable pandemic market to execute a headquarters lease anchoring the redevelopment of an iconic New York City office tower.

  • Chubb took advantage of an unstable pandemic market to execute a headquarters lease, anchoring the redevelopment of an iconic New York City office tower.
  • In 2018, Chubb retained CBRE to help develop solutions to a complicated real estate situation resulting from its recent acquisition of Ace Insurance. 
  • Chubb had 3 non-coterminous leased locations spread across Midtown and Downtown Manhattan with the nearest expiration in 2024 (6 years forward).
  • Chubb sought to cost-effectively improve their New York presence and create something unique and bespoke to Chubb replete with prominent signage, dedicated entrance on an avenue and excellent amenities.

  • 241,000

    Total Square Feet

  • 20-Year

    Acquisition Lease

  • Anchor

    Tenant in Redeveloped Building

  • Signage

    Prominent in Lobby

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550 Madison Avenue and its new Public Garden designed by Snøhetta. Images courtesy of The Olayan Group, RXR, and Gensler.
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Chubb signage at Lobby Desk. Image courtesy of The Olayan Group, RXR, and Gensler.
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Public Garden at 550 Madison Avenue designed by Snøhetta.Image courtesy of The Olayan Group, RXR, and Gensler.
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Alicja Kwade’s Solid Sky sculpture suspended over the lobby of 550 Madison Avenue. Images courtesy of The Olayan Group, RXR, and Gensler.
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Public Garden and Cafe at 550 Madison Avenue designed by Snøhetta. Image courtesy of The Olayan Group, RXR, and Gensler.
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Fitness Studio at 550 Madison Avenue. Image courtesy of The Olayan Group, RXR, and Gensler.
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Club Level at 550 Madison Avenue. Image courtesy of The Olayan Group, RXR, and Gensler.
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Renovated ground floor at 550 Madison Avenue. Image courtesy of The Olayan Group, RXR, and Gensler.
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Reception on the Club Level at 550 Madison Avenue. Image courtesy of The Olayan Group, RXR, and Gensler.

The Solution & Result

  • CBRE quickly evaluated Chubb’s portfolio and developed consensus on key criteria (including with long time CEO Evan Greenberg) so that when COVID-19 concerns persuaded landlords to pump up concessions, Chubb was prepared to transact. 
  • Quick action not only improved economics (high-end building rates would soon soar as tenants sought to coax workers back to the office with better premises), but first-mover status at 550 Madison enabled Chubb to drive entry, signage and amenities (outdoor gardens, conference facility, gym, food kiosks). 
  • CBRE negotiated for several tower floors (for executive and client-facing functions) and base floors (to average down the overall cost) along with real estate tax and other cost protections.
  • 550 Madison’s full building renovation will be LEED Platinum and Well Gold certified.

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