Region: 10 locations
Services Provided: Tenant Representation, Financial Analysis, Workplace Strategy, Labor Analytics/Site Selection, Project Management, Lease Administration
Size: ~1.2 million SF / 78.85 acres of land
CHALLENGE
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Blue Cross Blue Shield, one of the largest health providers in the state, was recently left with an excess of unutilized leased space for redefined workplace strategies following the wake of COVID.
This resulted in most employees working from home and multiple BCBS buildings that were outdated and sitting nearly vacant.
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BCBS aimed to consolidate its footprint over fewer locations while minimizing cost and disruption to employees and maintaining the ability to grow in the future.
SOLUTION
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The Newmark Tenant Representation Team quickly identified buildings to mothball, potential new and existing sites, and leveraging their market knowledge, began early lease restructuring.
RESULTS
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Newmark uncovered a buyer for Blue Cross Blue Shield's Virginia, Minnesota location and simultaneously negotiated an early lease termination for BCBS at that location.
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Newmark negotiated the early termination of multiple BCBS buildings at their Eagan, Minnesota campus 2.5 years early in order to reduce occupancy costs:
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3535 Blue Cross Road - 451,013 SF
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3311 Terminal Drive - 29,916 SF
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1750 Yankee Doodle Drive - 227,666 SF
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3545 Blue Cross Road - 12,173 SF
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Newmark negotiated an early lease restructure for River Park I and River Park II to consolidate employees for a workplace of the future, with a significant concessions package and exceptional economic terms.
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In total, Newmark negotiated a one-time saving of over $50,000,000 for BCBS, and annual savings of $22,500,000 beginning 1/1/2027.