Leveraging the Market to Recast a Lease

Client
  • Precision Drilling Corporation
Space
  • 59,569 sq. ft.
Industry
  • Energy
Locations
  • Houston
Services Provided
  • Transaction Management
Cresa Team
  • Sue Rogers
  • Steven Heal
  • André Granello

Client Objectives

  • Precision Drilling wanted to determine if they should terminate its current lease three years before expiration to potentially relocate to a more economic situation.
  • The client believed that leveraging the surplus of sublease space in the Energy Corridor/Westchase submarkets could lead to better deal economics.
  • Putting a huge focus on employee recruiting and retention, Precision Drilling wanted to modernize its office space and provide easy access to first-class amenities.

Results

  • Once engaged, Cresa advised Precision Drilling to engage the market early to maximize its leverage.
  • Cresa then was able to identify several potential options that were used to leverage the client’s current landlord to renegotiate the lease rather than risk losing a strong tenant.
  • The amended lease provided a substantially lower rental rate, generous TI package and free parking for the extended five-year term.
  • In all, Cresa created more than $2.8 million in real estate savings for the client.
Precision Drilling Break Room
Precision Drilling Hallway

Learn how we customize solutions to meet your needs.

Contact us