Baytex Energy
28,350 sq. ft.
Decommissioning Unneeded Space
Leveraging the Market to Recast a Lease
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Client
- Precision Drilling Corporation
- 59,569 sq. ft.
- Oil and Gas
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.
- Cresa advised that leveraging the surplus of sublease space in the Energy Corridor/Westchase submarkets would produce a more advantageous economic outcome.
- 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
- Engaging the market during a highly competitive tenants' market, with an abundance of deeply discounted sublease opportunities, provided maximum leverage.
- Cresa identified several potential options that that maximized the tenant's position creating a potential threat of loss to the current landlord
- 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.
