Prisma Health had developed a strategic goal to reduce its occupancy cost for non-clinical space and to create vacancies immediately adjacent to or within hospital facilities that could be repurposed for income-generating occupancies.

The first step toward fulfilling the goal was to conduct a study to determine the highest and best use of Prisma-owned, undeveloped property. A vacant metal building (formerly a Sam’s Club) and undeveloped property at 1401 Sunset Boulevard, near the Palmetto Richland campus, was to be further studied to determine its potential for being a space solution for administrative offices.

Prisma’s original study for highest and best use of the Sunset Boulevard site had concluded with a $16MM estimated budget to repurpose the building and site to house a maximum of 750 employees.

LCK and its real estate partner, Colliers International, ​ were retained by Prisma Health to conduct an in-depth analysis of the Sunset site data that had previously been gathered and at the same time to search the marketplace for other properties against which the feasibility of the Sunset site development would be measured. LCK/Colliers’ approach was comprehensive.

LCK/Colliers identified approximately 165,000 square feet of Prisma-leased space within four locations across the Columbia region that could be consolidated into one large campus resulting in both occupancy cost savings and operating efficiencies.

After identifying all market options to house these consolidated functions, the Colonial Life campus prevailed as the most economical solution. Real estate occupancy cost savings alone were projected to be $1.8 million over a ten-year lease term. This did not take into consideration the valuable operating cost savings to be realized through consolidation of like functions, resulting in employee efficiency. These projected savings would allow Prisma Health’s precious capital to be deployed elsewhere on revenue-generating space.