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ITW Construction Products

ITW Construction Products, a wholly owned subsidiary of Illinois Tool Works, Inc. (“ITW”), is ranked among Fortune magazine's Top 200 and is renowned for quality, service and technological excellence. Founded in 1912, today ITW is a $10 billion multi-national manufacturer of highly engineered components and industrial systems. The company consists of 625 decentralized operations in 44 countries and employs more than 47,500 people.

The Challenge

Around the time its lease was to expire, it appeared that ITW was a captive tenant. This perception was fuelled by the fact that ITW occupied two other facilities (one owned, one leased) on the same street as the one about to expire. The situation was exacerbated by a requirement that its warehousing operation was to be in close proximity to these facilities.

Savills Studley’s Response

Savills Studley prepared a detailed analysis of market rents within the immediate area to build a negotiation platform with the existing landlord. Savills Studley also sourced relocation alternatives in the immediate area to establish the best alternative should renewal prove problematic. The key was twofold: ensure their landlord knew they had credible alternatives and establish comparable rents throughout the local market that could be used in arbitration discussions should the need arise.

The Solution

The process worked. Savills Studley eliminated any notion of captive tenancy, successfully secured a five-year extension and negotiated a 13 percent reduction in net rents on behalf of ITW.

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Key contacts

Stan Krawitz

Stan Krawitz

Vice Chairman – Founder, Head of Canada

Savills Toronto

+1 416 480 0745 Ext. 3030

 

Ken Norris

Ken Norris

Senior Vice President, Branch Manager – Ontario Office

Savills Toronto

+1 416 480 0745 Ext. 3047

 

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