Success Stories

First Dental Health

San Diego, CA
10,000 SF
Cresa San Diego
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Client Objectives

First Dental Health needed to expand their facility by 40% in San Diego while reducing their overall occupancy cost. At the time Cresa was hired, their existing building in Sorrento Mesa could not meet their growth needs and they were operating in inefficient suites that were not contiguous.  The goal was typical: occupy space which fostered a collaborative environment and assisted with meeting their recruitment goals.  First Dental Health also needed flexibility in their lease (reduce overall foot print or terminate), in the event they were able to sell the company.

Cresa Team Members

Results

Cresa developed a strategy which provided First Dental Health flexibility while achieving all of their objectives. The existing property was 60% occupied, and could produce viable options at competitive pricing. Our team researched the existing debt and discovered that the ownership was having difficulty staying current on its obligations, and may lose the building without First Dental’s revenue stream. Cresa identified multiple options in the market, including  an office space which could be sublet at a substantially reduced rate. The sublessor also had a significant amount of specialized tenant improvements in the building, and was likely to renew their master lease for the entire building for significant term. Using this information, Cresa convinced FDH’s current landlord to build-to-suit a larger contiguous space, at a cost equal to their current real estate spend. Concurrently, Cresa also enrolled the sublessor and ultimately negotiated below market terms that allowed FDH to occupy the space for to 13 years at a low, fixed cost.  Cresa’s market knowledge and negotiating savvy allowed FDH to capitalize on an opportunity that provided for very low occupancy costs.  The owner of FDH ultimately sold the company to Principal Financial Group.

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