Association restructures lease six years early at a cost savings value of over $3.4 million dollars

Results

After developing a strategic real estate plan, an internal agenda was set to reduce real estate costs while upgrading the space to maintain a “leading edge” image in the cable and telecommunications industry. To fully leverage the current landlord, Cresa simultaneously developed and deployed an external agenda to maximize NCTA’s negotiating position.

NCTA’s movie theater requirement limited the relocation options to only proposed developments which would start construction based on NCTA’s tenancy. These options included several developments located in the vibrant East End of Washington, DC.

By utilizing the internal/external agenda method of negotiating, Cresa was able to negotiate a restructure of NCTA’s lease which commenced six years prior to the scheduled lease expiration with a cost savings value of over $3.4 million dollars from rent reduction, rent abatement, and tenant improvement cash. Cresa also negotiated for a termination of NCTA’s $400,000 letter of credit and significant building upgrades that would satisfy NCTA throughout their next lease term.