KBR
Early lease renegotiation unlocks $4.8M in savings, enhanced flexibility, and capital for reinvestment
Client
- KBR
- 105,000 sq. ft.
Emplacements
- 15020 Conference Center Dr, Chantilly, VA
Services Fournis
Client Objectives
KBR is a global firm supporting defense, intelligence, space, and civilian agencies with mission-critical solutions. Occupying approximately 105,000 square feet in Chantilly, Virginia, KBR engaged Cresa three years ahead of its natural lease expiration to proactively evaluate its real estate strategy. The client sought to secure long-term financial flexibility, enhance operational efficiency, and unlock capital to renovate and reconfigure its space, while maintaining the stringent operational and security requirements critical to its mission.
Results
Cresa developed a comprehensive Strategic Real Estate Plan and negotiation strategy tailored to KBR’s operational needs, workforce considerations, and security requirements. As part of this effort, Cresa performed a detailed labor study to identify sustainable labor growth opportunities and assess recruiting and retention dynamics within the regional market.
To create meaningful leverage, Cresa identified and evaluated three viable relocation options and initiated parallel LOI discussions. This competitive positioning allowed KBR to pursue a relocation without out-of-pocket capital expenditures, strengthening its negotiating position with the incumbent landlord. Leveraging market conditions and competitive alternatives, Cresa negotiated a lease restructuring focused on improved economics, enhanced flexibility, and risk mitigation.
Ultimately, KBR executed a transaction favoring the current location at 15020 Conference Center Drive and renegotiated lease three years in advance of lease expiration.
AT A GLANCE
- $4.8 million in total savings prior to lease expiration
- $3.25/SF rental rate reduction
- $3.7 million concession value
- Improved lease flexibility, including contraction and expansion options and two termination options
Related
Success Stories
-
Think Tank in Central Business District
Reducing Rent and Securing Lease Incentives to Strengthen Financial Stability
17,000 sq. ft.
-
Siemens Government Technologies
Government Contractor saves over $2.3M with early lease restructures
34,834 sq. ft.
-
Consulting Firm
Consulting Firm, 950 N Glebe Rd, Arlington, VA
48,000 sq. ft.