Success Stories

Centre For Healthcare

San Diego, CA
74,000 SF
Cresa San Diego
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Client Objectives

After two years of relationship building and a strong recommendation from one of their consultants, Centre for Health Care hired Cresa to represent them in evaluating their options for medical and administrative space in the Rancho Bernardo and Poway submarkets. Their goal was to combine two of their facilities and reduce their occupancy costs in an area with very little existing or proposed medical space.

Because of the scarcity of medical space and land zoned for medical uses, Cresa took Centre for Health Care down parallel paths, convincing the client it was in their best interest to enroll the current landlord in a competition with any developers who might consider building a new facility to accommodate their needs.

Results

After clearly defining the client’s physical needs, Cresa commenced negotiations with landowners, developers, hospitals, “medical” tenants and the current landlord. It became evident through a lengthy process (and a very unfavorable proposal) that the landlord was assuming the Centre for Health Care was not in a position to relocate. By this time, Cresa had uncovered a unique opportunity with a prominent, local hospital interested in expanding their campus, who also happened to enjoy a strong relationship with the client.

Cresa and Centre for Health Care were able to capitalize on the timing, a unique relationship, and the requirement of the hospital to attract a sizeable tenant to anchor its new building. These factors allowed Cresa to attain highly favorable terms for the client, including a substantial tenant improvement allowance and rental abatement sufficient to offset relocation costs. Centre for Health Care will pay less rent in the fifth year of their new lease term than in the first year of the proposed renewal in their former facility.

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