Reducing Rent and Securing Lease Incentives to Strengthen Financial Stability

Results

Since 2008, Cresa has advised this think tank client on its real estate strategy, ensuring alignment with the organization’s evolving needs. In 2015, Cresa successfully negotiated and managed the construction of a new facility in an upgraded office building. Recognizing the market downturn in 2020, Cresa proactively engaged the landlord of 1800 M Street, NW, to negotiate an early lease restructure that capitalized on the building’s limited demand and rising interest rates.

By leveraging deep market insights, financial analysis, and strategic negotiations, Cresa secured a $17.00 per square foot rent reduction, along with substantial free rent and tenant improvement allowances. This approach not only cut costs but also enhanced the client's ability to invest in its operations while remaining in a prime location.

Cresa's strategic planning resulted in:

• Significant Cost Savings: Successfully negotiated a $17.00 per square foot rent reduction.
• Maximized Lease Incentives: Secured substantial free rent and tenant improvement allowances to support long-term operational stability.
• Strategic Lease Restructure: Capitalized on market conditions to lock in favorable terms ahead of the lease expiration.
• Long-Term Real Estate Efficiency: Maintained a high-quality office space while reducing financial burden.