Honeywell Achieves Lease Renewal and Financial Savings with iO Partners
30. 06. 2025
Faced with the expiration of its lease, Honeywell had to make a strategic decision regarding the future of its Prague office. Thanks to a long-standing relationship and deep understanding of the client’s needs, iO Partners led a comprehensive renegotiation process, exploring all possible alternatives. The result was not only the extension of the lease but also the achievement of significant financial benefits.
Situation
The partnership with Honeywell dates back 20 years, when the Prague premises were originally secured by the JLL account and local teams. In 2023, the local team transitioned into iO Partners, retaining full continuity and client insight.
As the lease term neared its end, Honeywell was considering whether to renew the lease or relocate to more modern and sustainable offices. This decision was further complicated by recent internal changes, which altered the company’s space requirements.
Approach
iO Partners prepared a comprehensive overview of viable relocation options, assessing each against Honeywell’s current premises. The team secured competitive proposals for both new and existing buildings and conducted detailed financial and qualitative analyses.
Crucially, iO Partners leveraged its knowledge of the landlord’s lower occupancy situation to strengthen the client's negotiating position. While newer buildings offered upgraded facilities, the cost-benefit analysis ultimately favored staying – especially with the potential to renegotiate more favorable terms.
The renewed lease included a below-market rent, an attractive rent-free period, and a generous capital contribution. Honeywell was also able to retain favorable terms from the original lease, including an indexation cap. As part of Honeywell’s global sustainability standards, the new lease also required the landlord to implement improvements aligned with ESG principles.
Results
Honeywell extended its lease for another term, securing long-term stability, operational continuity, and substantial savings. With iO Partners’ strategic guidance, the client preserved flexibility and achieved better-than-market conditions – all while maintaining a location well aligned with its business and workforce needs.