Davidson, Dawson & Clark, LLP
60 East 42nd Street
Entire 38th Floor
Davidson, Dawson & Clark is a prominent Estate and Trust law firm that was established in 1949. They were originally located at 330 Madison Avenue and had remained there as a tenant for approximately 30 years. In 1997, the firm hired Norman Bobrow & Co. to handle its relocation to better space, as their current space had grown tired.
We initially ventured to move them to 100 Park Avenue, but the numbers were simply not working out. Our research revealed that due to the rapidly increasing rental market, it would be more optimal for the company to renew its lease for another five years.
In 2003, after the commercial market had topped off, reversed, and finally bottomed out, we recommended to the firm that it would be an ideal time to relocate. Due the additional time they had spent at 330 Madison, we strongly believed that their worn down space would hurt their ability to attract new business.
Adhering to our strong advice, the firm made the move to the 38th floor of the Lincoln Building. We secured them a 10-year lease with a 5-year fixed renewal option, including a $65.00 work letter over base building work and 10 months free rent.
In 2012, the leasing market was steadily rising in the midtown area. Although Davidson Dawson & Clarke had three years remaining on their lease, we saw an opportunity to renew their existing lease, as the building had multiple floors available both above and below them. Since the Landlord saw the firm as the ideal tenant for the building, we believed that we would be able to negotiate several items, which would save the firm tens of thousands of dollars over the years.
Additionally, their space was in pristine condition with a multimillion-dollar installation; however, since the Landlord was unaware of the existing installation, we were able to squeeze out a cash allowance and free rent from the Landlord. We also grabbed the opportunity to change some of the terms on the initial lease to more favorable terms. Some of these items included:
New base years on the real estate and Direct Operating escalations.
A new base rent $15.00 below market.
Changing the annual escalation from a CPI to a Direct Operating escalation saving the firm thousands of dollars annually.
Three months of free rent plus a cash allowance to improve the space.
Renewal and cancellation option.
Not only were we able to lock in a new ten year term, we were also able to provide stability for the younger partners.