Re-negotiating headquarters lease to enhance savings, advocacy, and collaboration

Results

Cresa engaged in a data-driven strategic planning and market analysis to assess the best timing and strategy for renegotiation. By leveraging early lease restructuring opportunities, Cresa secured significant financial savings and enhanced lease flexibility for CEI.

The renegotiated lease at 1310 L Street, NW, resulted in a 5-year, 9-month extension, locking in favorable terms while avoiding market uncertainty. Cresa’s negotiation strategy yielded a $16.00/SF reduction in the base rental rate, saving CEI $500,000 over the remaining lease liability. Additionally, CEI received nine months of free rent valued at $634,000, along with a reset base year to mitigate future operating expense increases.

To enhance CEI’s workspace, Cresa negotiated a flexible Tenant Improvement Allowance that fully covered renovation costs, allowing for a refreshed office layout and the development of an in-house studio to support CEI’s media initiatives.

Cresa's strategic planning resulted in:

• $500,000 in Cost Savings: Achieved through early lease restructuring and rental rate reductions.
• $634,000 in Free Rent: Secured an additional nine months of free rent to provide financial relief.
• Fully Funded Office Improvements: Negotiated a Tenant Improvement Allowance that covered all renovation and studio construction costs.
• Lease Term Optimization: Extended lease term by 5 years and 9 months, ensuring long-term stability with enhanced flexibility.