5601 SKYLAB ROAD, HUNTINGTON BEACH, CA
Client had two (2) years remaining on long term build to suit lease for its corporate headquarters, research and development, and manufacturing. At the time, the in place rents were well above then market conditions for comparable space. A long term commitment to the facility was favorable if the landlord would recast the lease at then more favorable market conditions.
Thru the site selection and due diligence process, the team evaluated several scenarios which included (1) a recasted renewal of the current facility, (2) a bifurcation of production and corporate headquarters, as well as (3) a full relocation of the entire facility. The team analyzed the each option in detail thru its strong negotiating position.
This nine (9) month evaluation and negotiation process provided complete clarity into all costs and benefits associated with each scenario. The client ultimately recasted their lease at more favorable economics and obtained flexibility that would allow for adapatation to both market and potential business changes in the future.