Association restructures lease six years early at a cost savings value of over $3.4 million dollars
NCTA hired Cresa to develop a strategic real estate plan to evaluate all possible real estate strategies. Occupying approximately 39,000 square feet of office space to accommodate its staff and an additional 14,000 square feet of first floor space which includes a showroom, a boardroom and a 100-person movie theater, the group had seven years remaining on its lease term at 25 Massachusetts Avenue, NW and did not want to miss any “window-of-opportunity” that the market was offering.
After developing a strategic real estate plan, an internal agenda was set to reduce real estate costs while upgrading the space to maintain a “leading edge” image in the cable and telecommunications industry. To fully leverage the current landlord, Cresa simultaneously developed and deployed an external agenda to maximize NCTA’s negotiating position.
NCTA’s movie theater requirement limited the relocation options to only proposed developments which would start construction based on NCTA’s tenancy. These options included several developments located in the vibrant East End of Washington, DC.
By utilizing the internal/external agenda method of negotiating, Cresa was able to negotiate a restructure of NCTA’s lease which commenced six years prior to the scheduled lease expiration with a cost savings value of over $3.4 million dollars from rent reduction, rent abatement, and tenant improvement cash. Cresa also negotiated for a termination of NCTA’s $400,000 letter of credit and significant building upgrades that would satisfy NCTA throughout their next lease term.