"Cleaning Up" Costs for a National Dental Lab Network

Client
  • National Dentex Corporation
Space
  • 125,000 sq. ft.
Industry
  • Healthcare
Locations
  • Orlando
  • Phoenix
Services Provided
  • Transaction Management
  • Consulting
  • Lease Administration
  • Location Strategy & Economic Incentives
  • Project Management
Cresa Team
  • John Gay
  • Gary Klein

Client Objectives

Many of NDX’s labs are in tertiary markets where it is a challenge finding  alternative locations. The high cost associated with building out a lab makes a move problematic, and often NDX’s landlords were the previous lab owners, who were aware of this difficulty. This made it hard to use the market as leverage.

Results

Cresa took over NDX’s portfolio from another national brokerage firm to deliver a fresh approach to handling the client’s various needs. Owned by a private equity firm, their main goal was to standardize reporting and profitability through contained costs utilizing a single point of contact.

In each market, a strategic plan was mapped out to decide the feasibility of relocating or renewing.  If renewing was possible, Cresa was to negotiate a tenant improvement allowance to bring the lab up to current standards.  Through Cresa’s local knowledge in each market, we were able to find costs savings whether in reduced rents and/or increased tenant improvements to the betterment of what could have been achieved in existing fixed rate renewal options.

In one location, the landlord of the lab never disbursed $112,000 in economic incentives provided by the local government 10 years prior. It wasn’t until Cresa looked over the lease that they discovered this was an oversight by the landlord. The owed amount was promptly paid by the landlord.

When NDX considers buying a lab, they bring Cresa in to provide local market intelligence using their valuation services. This gives NDX proper footing when negotiating a lab purchase.

Cresa was retained by the client in 2016 and has continued to service NDX’s portfolio. The client currently engages with Cresa in strategic planning, site selection for new or relocating labs, renewal negotiations, valuation services and project management. Cresa has since been called in to oversee NDX lab projects in Reno, NV and St. Cloud, MN.

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