Success Stories

EYP

Washington, DC
21,000 SF SF
Cresa Washington DC
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Client Objectives

EYP is a global provider of comprehensive building design, research, and related consulting services to a broad range of industries, including education, government, corporate and healthcare. Headquartered in Albany, New York, and with major operations in Washington, DC, and Boston, among others, EYP has grown to be a leading architecture and engineering firm in the United States.

EYP initially appointed Cresa Washington DC to perform a thorough examination of its current real estate situation with special attention paid to the operating expense and real estate tax pass-throughs being charged to EYP in its Washington, DC, location at 1000 Potomac Avenue, NW. The analysis revealed EYP’s landlord had been mistakenly overcharging operating expenses to EYP for several years. Additionally, Cresa found that EYP’s then-current rent was signficantly higher than the market rental rate.

Cresa identified several strategies that could potentially result in additional savings for EYP by leveraging the relatively soft Georgetown submarket and worked to recover the erroneous operating expense pass-throughs in the form of rent credits. EYP then formally engaged Cresa to pursue these cost reduction strategies in the fall of 2013, approximately four years prior to its lease expiration.

Cresa Team Members

Results

Cresa and EYP identified interior modifications that would improve space efficiency and enable EYP to dispose of excess space as part of an early restructure of the lease. Over the course of negotiations with EYP’s landlord, Cresa was able to achieve significant savings for EYP three and a half years prior to lease expiration by reducing their square footage by 15% and dropping the base rent to the market rate. Additionally, Cresa secured a concession package, which became available immediately, that included a sufficient tenant improvement allowance and rental abatement concession that resulted in an overall savings of $1.3 million, equivalent to a 35% reduction of EYP’s remaining liability.

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