International Labour Organization to the U.N.

1 Dag Hammarskjold Plaza
30th Floor

The ILO was a tenant we worked with for over 30 years including their relocations and renewals. In 2010, the ILO called our firm to negotiate their renewal at 220 East 42nd Street (The Daily News Building), a building they had been a tenant for close to 20 years. Although they were happy with the building, their space was severely outdated and needed to be freshened up. Additionally, the space was not sprinklered and due to a law that would be taking effect in 2019, the space needed to have sprinklers installed before that date.

 

We approached the Landlord, SL Green with a reasonable offer, which included a work allowance, free rent and some base building work, standard for any new tenant. SL Green arrogantly raised their square footage by 30%, offered a $10.00 a foot workletter and no free rent. Additional they asked for rents $12.00 above the market rate.

Angry at their response, the ILO had us search for new space outside of the building even though it was over a year before their lease expiration. After an extensive search, we focused our negotiations on 1 Dag Hammarskjold Plaza a building known for its unobstructed river views and prestigious tenant roster of United Nation missions.

Since the ILO was founded over 100 years ago and had an annual budget of close to one billion dollars we were able to secure a rental at a substantially lower rate than their space at 220 East 42nd Street. Additionally, the Landlord provided a fully sprinklered new building installation. Finally, since the ILO still had 12 months of rent remaining at 220 East 42nd Street, the Landlord provided free rent through the end of that existing lease with no additional expenses during that term.

All of this was achieved without the ILO having to put up a security deposit.

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© 2018 David Reich

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