Success Stories

Larrabee, Mehlman, Albi & Coker LLP

San Diego, CA
10,681 SF
Cresa San Diego
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Client Objectives

When LMAC, a law firm specializing in immigration, confirmed its growing landlord would prefer to occupy LMAC’s space rather than continue leasing to them for a new term, they turned to Cresa for support. Since a renewal was off the table and a definite timeline had been established for a relocation, the client needed help navigating the landscape of office lease opportunities that would provide them with some advantages that they did not enjoy in their current location. A specialized model was developed for LMAC which evaluated multiple sub-markets based on what was important to the Partners: annual cost, maximizing tenant improvement dollars, traffic pattern/ingress/egress, parking, and the opportunity for signage. After soliciting proposals from several landlords in the UTC and Sorrento Mesa sub-markets, Cresa analyzed all the relevant qualitative and quantitative factors. In late round negotiations, it appeared that not all of LMAC’s requests could be realized; however, Cresa persuaded a large REIT to provide exactly what LMAC preferred, including excellent signage.

Results

Even though the landlord community was aware that LMAC needed to move, Cresa created leverage by orchestrating competition among several landlords for their tenancy. The transaction that was ultimately crafted provided for a necessary and firm occupancy date, avoiding costly holdover penalties. Additionally, it granted a generous tenant improvement allowance, sufficient to finish the space to an above-standard quality. The flexible use of the allowance, which the landlord conceded, enabled LMAC to allocate the costs towards workstation fit up, IT, and relocation costs. Cresa was also able to negotiate a significant rental abatement package and the unexpected right to signage, even though the client occupies less than a full floor in the building. LMAC’s sign is located at the corner of a lighted intersection with a traffic count of approximately 43,000 cars pass per day.

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