Success Stories

Dauntless Pharmaceuticals

San Diego, CA
Cresa San Diego
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Client Objectives

Dauntless Pharmaceuticals is a promising, young biotech company headquartered in San Diego, California. When first approached by Cresa regarding professional tenant representation, Dauntless was already engaged with a competing tenant representation firm. Cresa asked Dauntless how the search for a new corporate headquarters was progressing, and they voiced frustration about the lack of available options in the market as well as the lack of flexibility in the lease term. Dauntless was feeling pressure — not just from landlords, but from their own representation — to sign a three year lease, something they were not comfortable with due to the uncertainty surrounding their growth as a company.

Seeing an opportunity to be of assistance, Cresa identified the following key real estate objectives for Dauntless:

  • Location: Importance of a Del Mar Heights location near current employees’ residences and unique biotech talent pool
  • Flexibility: Achieve a shorter lease term to mitigate risks associated with unknown growth
  • Cost: Identify a below market rate in a market with low vacancy and rising rents
  • Capital: Limit capital investment on real estate and equipment

Cresa Team Members

Results

In order to achieve these objectives, Cresa scoured the market and identified five opportunities that the competition had not presented to Dauntless. Cresa submitted competing offers on their behalf and achieved the following results:

  • Location: Sublease in a highly visible Del Mar Heights Class “A” building
  • Flexibility: Negotiated a one year term with a two year option to extend
  • Cost: Secured a rental rate 26% below market at the time of signing
  • Capital: Negotiated a deal that included furniture, fixtures, and equipment

It is important to keep overhead and capital expenditures at a minimum when working with developing companies, especially in regard to real estate assets. When tenant representation takes a strategic approach to understanding business goals, the result is cost effective solutions with the flexibility to meet a client’s unique requirements.

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