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Case Study

Andrew Corporation: turning real estate into a strategic advantage

The sale of Andrew Corporation’s 60-plus-year-old manufacturing campus in suburban Orland Park, Illinois, necessitated the development of a new global manufacturing facility. However, many of the best development sites were just outside of Andrew’s target geography. Jones Lang LaSalle was tasked to deliver the most cost-effective real estate solution in the shortest amount of time while limiting the increase in commute time for the current employee base to no more than 15 minutes.

The team identified multiple sites along the I-80 Corridor and leveraged the developers, municipalities and the states of Illinois and Indiana to drive the most competitive economics and incentives benefits.

The result was the securing of $8.3 million dollars in state incentives, a $2.5 million dollar, five-year tax abatement benefit from the local school board, and they convinced the local municipality to eliminate permit costs of $300,000.

A 15-year lease for a built-to-suit manufacturing facility of 689,254 square feet on a 52.25-acre site at a lease constant of less than 7 percent vs. the developer’s original proposal of 8.1 percent was achieved. In addition, two fixed renewal options and an expansion option at a LIBOR based metric were secured. Total cost savings achieved was more than $16 million.