TRW (Northrop Grumman)

Challenge:

TRW (now Northrop Grumman) was pursuing a new government contract extension. Their 65,000 sf building had a cancellation but the timing didn't line up with the government contract which was potentially being terminated in 12 months, and their cancellation options for either 3 or 27 months. TRW couldn't cancel early since they needed to service the existing contract, but if the government contract was terminated in 12 months, they would have to pay in excess of $1 M for unused space.

Solution:

Larsen negotiated a repositioned termination option to the exact date the FAA contract could terminate and also provided that "if" TRW won the contract renewal, a new 7-yr lease would already be negotiated and pending.  A new cancellation option was drawn and a new lease was signed which was only contingent upon a new government contract. The award was won one year later and the new lease commenced.