Lease Renewal Delivers $1.25M in Savings for Dealer Tire
Client
- Dealer Tire
Emplacements
- Levittown, PA
Services Fournis
Superficie
- 115,200 sq. ft.
Cresa Office
Industrie
Client Objectives
Dealer Tire was approaching the final year of a 7-year lease and engaged Cresa to lead a competitive real estate process. The client needed to achieve 3 main goals: 1) mitigate operational disruption, 2) minimize P&L impact and 3) secure capital for strategic facility improvements. They were open to relocating for the right opportunity but strongly preferred renewing at better terms than market, given the existing employee base, existing investment in the space, and strict operational requirements related to fire safety and ceiling heights.Results
Cresa conducted a comprehensive market survey, identifying and touring viable properties that met Dealer Tire’s labor and operational requirements. By generating strong market interest and leveraging multiple competing proposals, our advisors created a competitive environment that positioned the incumbent landlord to deliver a renewal package that fully met Dealer Tire’s objectives. The resulting concession package eliminated the need for relocation, improved operational efficiency, and minimized financial impact. Key outcomes included:
- A 9.5% rent discount from the landlord’s asking rate—equating to $1.25M in savings over 7 years
- A full turnkey buildout of construction improvements, estimated at $250K
- $100K in free rent
- Return of the existing security deposit with no increase
- A renegotiated renewal option
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