Vets First Choice
26,000 sq. ft.
Accommodating Rapid Expansion
Leveraging the Market to Recast a Lease
Client
- Precision Drilling Corporation
- 59,569 sq. ft.
- 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.
