AIG will have a 10-year lease for the building. The lease rate is comparable to other lease rates in the area, which range between $11 per sf, net to $14 per sf, net with average lease rates in Southwest Plaza ranging from $12 per sf, net to $14 per sf, net, says Mike Nardini, vice president with CB Richard Ellis. AIG will receive some state tax incentives, such as tax breaks, for remaining in the state and in Springfield, Nardini says.
The company is moving from 721 S. 7th St., a location they have occupied since it was originally constructed in 1913 and where they currently occupy about 180,000 sf of the approximate 400,000-sf building. Additions to the building were constructed in the 1950's and the 1970's but the layout was not efficient for them. "They were seeking a more efficient layout and certainly a new facility," Hamilton says. The state is expected to buy their current building, he says.
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