Integrys Energy Services (Now EDF North America, LLC)

Situation
Integrys Energy Services, the unregulated trading company owned by Integrys, officed with the holding company and needed to relocate due to regulatory requirements. The company was paying an extremely low rental at the Prudential Building, 130 E. Randolph that would be difficult to replicate and yet occupancy expenses could not increase. The company wanted to consider both downtown and suburban options in order to secure the lowest possible rent and to maximize convenience for its employees.

Resolution
We conducted a demographic study to determine where their employees were coming from which concluded that a downtown location with access to several modes of public transportation would be the optimal location. This was essential information for senior management who originally thought a west suburban location would be ideal. After conducting a comprehensive search of both downtown and east-west corridor properties, direct and sublease spaces, the company ultimately executed a sublease at 500 W. Madison. The ten year lease was signed at the top of the market and remains well below the economic terms at which the landlord of the building is leasing space today. The economics were so strong that the tenant would not pay its then current rent until the fifth year of the lease term.