ERNST & YOUNG

Situation

E&Y leased approximately 200,000 rsf of space.

Evaluate market conditions and recommend the best course of action with respect to E&Y ís 2007 expiration.

Activities

Began with an assessment of desired objective(s).

Analyzed three submarkets for current, proposed and build-to-suit options.

Based on the desired objectives, developed qualitative weighting/rating for each alternative.

Designed quantitative models on NPV cost of implementation.

Explored state and local tax incentives as part of the overall analysis.

Created leverage in the market by opening the search to three submarkets.

Results

E&Y was able to relocate into a new building providing superior design efficiency resulting in approximately 10% less space required than initially projected with 135,000 rsf.

A series of key flexibilities were built into the lease including termination options during the financing and construction phase, sublease provisions, expansion options, renewal rights and non-recourse language relating to partner liability.

Local tax incentives improved the economics of the transaction.

Prominent downtown signage at the top of the new building.