Success Stories

Information Systems Laboratories, Inc.

San Diego, CA
30,097 SF SF
Cresa San Diego
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Client Objectives

Information Systems Laboratories (ISL) looked to relieve themselves of their ongoing lease obligation and downsize into approximately 33% of their current square footage.

Cresa Team Members

Results

After having hired another tenant representation firm to sublease their space with no positive results, ISL hired Cresa to help them quickly reduce their current occupancy costs.  From ISL’s standpoint, It was imperative they reduce their monthly rent obligation from $48,000 to less than $20,000.  Cresa understood the sublease market and also knew that approximately 500,000 square feet of competitive space was coming on line within 60 days.  Realizing a sublease was going to be difficult to accomplish quickly, Cresa recommended signing a new lease for less square footage at a market rent that would expire beyond the current term.

With knowledge that the building was in the process of being sold and aware of the buyer’s desire to convert the building to a bio-tech facility, Cresa contacted the buyer to begin negotiations. An accord was reached wherein a new lease would commence within 60 days for 5 years on only 10,200 square feet - well within ISL’s capabilities.  The concession made on behalf of ISL was that the landlord could terminate the new lease with 6 months’ notice if a tenant was secured to lease the entire 30,097 square feet.  This was of no concern to ISL as Cresa had educated them that if a termination occurred, they could relocate to an adjoining submarket at a further reduced rental rate.

ISL was ecstatic to be relieved of their exorbitant monthly rent obligation and thanked Cresa for their ingenuity and capability to help them attain their goals.  In the end, Cresa had accomplished what ISL had initially thought was unachievable.

Additional Assignments

  • This was Cresa's third assignment on behalf of ISL while working with three different Presidents.

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