1. Constantin Serval & Associes
NYC Lease Renewal
Location
New York, NY
Size
8,000 rsf new lease
Client Since
2009
Challenge
Headquartered in Paris, France, leading international audit and
consulting firm Constantin Serval & Associes is currently located on
the 25th
floor of 575 Madison Avenue. By 2009, about two decades
after Constantin had originally occupied the space, their rent had
reached a level 35% above the current market rate for the area. In
addition to inflated rent, the space was also dated and in need of
renovations.
Constantin recognized the opportunity a depressed market presented
for tenant negotiation and sought to take advantage of the downturn
in the Midtown Manhattan office market.
To this end Constantin engaged UGL Services Vice President John
Pavone to capitalize on market conditions and leverage themselves
with their current landlord. With the goals of achieving either a
renewal at a more acceptable rental rate structure or a relocation,
John’s task included:
 Create and implement a strategy to effectively reduce
occupancy costs and remodel their current premises, or
move to new premises with little capital outlay
 Create competition for the their tenancy amongst the
marketplace and their current landlord
 Educate Tenant to the current New York City real estate
market and its trends
 Manage the project under the UGL Equis umbrella
Solutions
Through an aggressive survey of the market, John was able to locate
several suitable alternatives while simultaneously creating
competition amongst local landlords for Constantin’s tenancy. In the
end, a renewal presented itself as the most efficient solution, with a
rental rate 40% below their landlord’s initial proposal. In addition to
securing Constantin favorable rate terms, John also arranged for the

2. landlord to remodel the space at their sole cost. The landlord also
agreed on a rent abatement concession and a space re-
measurement with a 20% loss factor, 7% lower than the rest of the
Midtown market. Such exemplary results were made possible
through John’s precise execution of strategy and the conflict-free,
tenant focused approach of UGL Services.
Benefits
Key benefits to the client included:
 A 40% reduction in overall occupancy costs
 Long term transaction, ensuring low occupancy costs for the
next 10 years.
 Re-modeled space at no cost to the client
 New base years for Operating and Real Estate Taxes
 A loss factor 7% below the current Midtown market.
 Client did not need to relocate, ensuring business continuity