Assessing university lease occupancy costs and cost savings strategies.
Robert Morris University was facing an enrollment reduction along with ~100,000 SF of underutilized space in a 358,000 SF downtown building. The University desired to maintain its East Loop location in downtown Chicago and increase affordability for students, but required an understanding of the value of their current lease, the strength of their negotiating position, and the cost of occupancy under various scenarios.
Hayat Brown Role:
The Hayat Brown team performed a market analysis and valuation of the University’s current lease based on the relationship between prevailing market rent and contract rent.
Our team then assessed the cost of seven (7) potential occupancy options for Robert Morris, including options to remain at their current campus, to relocate, or co-locate with another user.
The study identified the most cost effective option over the next 10 years and proposed short-, medium- and long-term plans for the University. Key findings included lease value, major market drivers of value, and actions with the potential to produce savings.