Case Study

Jenner & Block

First Mover in a Post-Pandemic Environment

March 1, 2021

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Overview

At the height of the pandemic, with leasing activity at a standstill, CBRE helped Jenner capitalize on favorable market conditions, limiting capital outlays while maintaining space flexibility amidst return to office uncertainty.

  • 65,000

    Total Square Feet

  • 26%

    Below Pre-Pandemic Building Transactions

  • Mitigate

    Out-of-Pocket Capital

  • Rights

    Lease Rights Comparable to Anchor Tenant

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1155 Avenue of the Americas.
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Jenner and Block exterior signage at 1155 Avenue of the Americas.
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Jenner and Block exterior signage at 1155 Avenue of the Americas.
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Renovated lobby at 1155 Avenue of the Americas. Photo courtesy of The Durst Organization.
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Access to Frank Gehry-designed cafeteria at 151 West 42nd Street. Photo courtesy of Studios & The Durst Organization.
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Access to artisan food hall at 151 West 42nd Street. Photo courtesy of Studios & The Durst Organization.

The Solution & Result

  • Enjoying the benefits of a below-market sublease negotiated by CBRE, Jenner was resigned to the fact that a direct renewal or relocation would result in increased occupancy costs.
  • Pivoting to a “remote engagement” in early 2020, CBRE created detailed analyses and interactive building surveys and tours for 22 primary and secondary alternatives to enable Jenner to get a “feel” for potential alternatives (and the associated economics) while physical access to buildings was limited.
  • Despite a pending lease expiration, CBRE counseled Jenner to delay making a decision based on our projections of weakening market conditions, eventually creating a competitive auction between four properties.
  • Secured economics 26% below pre-pandemic building transactions (including over $200 per RSF in cash) and below Jenner’s current cost on their sublease.
  • Obtained pandemic protections (including a future rent abatement) not secured by any tenant since and tenant rights (tax protection, fixed expansion, termination rights, etc.) associated with much larger tenants.

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