Cresa's fiduciary responsibility is to one party only — the tenant. This singular relationship avoids inherent conflicts
of interest in the marketplace.
We use our expertise, market insight, and years of experience to give you leverage with your landlord.
We apply strategic solutions that reduce costs, improve operations, and enhance the performance of your workforce.
Intervention Center for Early Childhood would like to express their appreciation to Dave Willis and Cresa Cares for their generous donation for such a worthy cause. ICEC was created to ensure the optimal development of young children with or at risk of developmental delays; and equip families with tools and resources to assist their child’s development.
The Largest Tenant Representation Firm in Orange County is Bigger and Better than Ever!
Cresa Orange County is proud to announce the merger of Southern California’s two largest pure tenant representation firms, Cresa and Travers Realty.
The addition of Randy Parker, Steve Card, Matt Wiley and Chris O’Connor—to our already very experienced team of tenant-focused advisors—truly strengthens Cresa’s Orange County presence.
Cresa Orange County is led by Managing Principal Pat Murphy, who has over 30 years of experience in commercial real estate. Eleven additional Principals are also located in the Orange County office, including Cresa LLC Board Member Jeff Manley, and Project Management Principal Rick Martin.
Cresa offers an array of integrated services, developed and implemented to give clients the full advantage of our advisors’ expertise, discipline, and judgment. These services include: Global Accounts, Portfolio Strategies, Transaction Management, Project Management, Facilities Services, Location Planning, Lease Administration, Capital Markets, Industrial Services, Sustainability, Sublease & Disposition and Retail Services.
Orange County’s fundamental advantages - its coastal location, excellent transportation networks, wide selection of newer product with attractive pricing, combined with an improving local job outlook – offers both office and industrial tenants in the market a wide range of space options, and a highly-educated employee base.
The latest employment growth statistics for the county were in the primarily white-collar sectors of professional services, construction, healthcare, administrative support and scientific and technical uses. Green tech, automotive and engineering firms were just a few of the high-tech industries recently active in the market. Major transactions by Mitsubishi Electric Automotive Division, Subaru of America and Arden Engineering support this growing trend.
Additionally, a recent report by California State University Fullerton’s Center for Economic Analysis and Forecasting stated, “Orange County will benefit from an economic recovery on a global scale. The free-trade agreements with South Korea and Panama, for instance, could have large impacts. Exports are projected to grow for all sectors during the forecast horizon,” the report said. And local exports in computer and electronics could reach $8.5 billion by year end 2015.
Orange County’s declining unemployment rate – one of the lowest in Southern California – will bode well for office landlords as more firms begin to hire again, or consider expanding their space requirements. But at least over the short term, this dynamic and well-positioned office market will remain tenant driven, as free rent and concessions are still being offered in many select submarkets.
The trend of Class “B” users jumping to attractively priced Class “A” product will continue for both expanding R & D and the more traditional industrial occupiers. Redesigning and reducing expenses, while landing better operational locations will remain very popular. However, as the industrial and office inventory continues to tighten, only the firms that act soon will secure the best deals. Expect to see tenants in all sectors that have been waiting on the sidelines make a move later this year to establish a presence or expand market share in this exceptional and robust Orange County business climate.
As the dynamics of your industry change, chances are you need for industrial space will change with it. Whether it’s a new warehouse that brings you closer to your supply chain or a new plant that adapts to a more flexible manufacturing operation, an evolving business strategy might very well dictate a move to more accommodating facilities.
That’s where Cresa’s Industrial Services group comes in. We’ll find the right building for your operational needs. We represent tenant’s exclusively—never landlords or developers—so our advice is always free of conflicts. We can help you evaluate your options in a completely unbiased way. If relocation is the answer, we’ll see you through the entire process, from initial needs assessment to the final move in. if staying in your current facility makes more sense, we can present you with alternatives that can add to your leverage in negotiation your lease renewal.
Our entire approach to industrial real estate is consultative. Many of our people come from corporate backgrounds, so we are adept at seeing things from your perspective.
Before we address your space requirements, we seek to understand the strategic needs that underlie them. We analyze your operations, your markets, and your infrastructure requirements. We take a fresh look at your assumptions. We help you identify the weaknesses in your current facilities and fine tune your wish list.
Once we’ve considered all the issues, we’ll find specific spaces that address them. We’ll consider your financing situation as well, and can structure deals that take advantage of our extensive access to public and private capital markets.
With us, there is no such thing as a cookie-cutter solution.
These days, a warehouse is more than just a link in the supply chain. It might also be a distribution point for online retail operations. Such an omni-channel facility may need to be located near major transportation hubs, for same-day and overnight fulfillment. Its location cannot be haphazard.
Our industrial specialists take a holistic view of your supply chain, and we have the resources to find shovel-ready spaces in markets where the costs of labor, fuel, and transportation are all in line with your specific needs.
In short, we combine our considerable real estate savvy with an understanding of the broader issues of supply chain management.
Modern manufacturing facilities have their own set of unique needs that must be considered well in advance. At Cresa, we are unusually adept at helping manufacturers assess those needs and address them.
Here are just a few of the things we can help you think through:
In today’s business climate, there are many number of reasons to relocate your manufacturing facilities. Maybe you need to modernize your operations, or you’re looking for a more capable workforce. Maybe you’re attracted to localities that offer economic incentives, or you are “back shoring”—bringing your operations back from overseas.
Regardless of your reasons, our specialists can help you meet your goals. We work with manufacturers of all kinds, from metalworking and machine shops to the most advanced technology-driven facilities, from light assembly to precision medical device production.
Our people understand that the traditional plant layout—designed for the “one worker, one job” model—is no longer useful. We are thoroughly familiar with new trends in both engineering and production, and we can help you find a building ideally suited to the flexibility your operations now demand—from workers who can perform multiple tasks on multiple machines, to machines that can be moved around the shop floor as needed, to shifting production schedules that can accommodate different products at different times.
Through our Site Selection group, we can identify localities that are particularly favorable, not just for the workforce efficiencies you require, but for economic incentives as well. We’ll help you choose from among a wide range of state and local tax incentives offered in exchange for your business creating full-time jobs.
Once we’ve identified a course of action—whether for your supply chain or manufacturing needs—we then assemble the right combination of services to carry it out. From a single point of contact, we’ll coordinate an integrated team of specialists who can provide:
So don’t try to shoehorn your industrial requirements into a space that’s not right for you. Talk to people with the experience and expertise to meet those requirements in an unbiased, strategically sound manner, talk to us.
At Cresa, we can help you make the most of tax grants, tax credits, and all the other incentives local governments offer to bring businesses to their communities.
Through our Site Selection group, we can offer the following services:
The Tenant's Choice
Spaces Can Inspire
Cresa Consulting Group
Dollar Shave Club
February 26, 2016
How can two leases that have the exact same underlying costs have two dramatically different impacts to a company’s balance sheet? The below balance sheet impacts are different because the FASB & IASB have formally stated in the final lease accounting changes that gross leases (any lease with operating expenses / real estate taxes & insurance imbedded in the base rental amount) will now have to capitalize the real estate taxes and insurance onto their balance sheets. By comparison, net leases will not capitalize real estate taxes or insurance on to their balance sheets.
We agree that this doesn’t exactly make sense but these are the types of surprise unintended consequences that companies will be facing if they don’t get their arms around these new lease accounting changes immediately.
The below table demonstrates the dramatic difference between a gross lease and a net lease to a company’s balance sheet.
Assumptions utilized for above lease calculations - (50,000 SF lease; 10 year term; $40/SF “all in” of which OPEX equates to $4/SF; RE taxes $5/SF; $1/SF for insurance and $2.50/SF for utilities).
The above lease comparisons have an “all in” cost of $40 per square foot on a gross basis but one is structured as a “gross” lease and the other is structured as a “triple net” (NNN) lease. According to the new rules the gross lease structure must capitalize the embedded taxes and insurance onto the balance sheet whereas the NNN lease structure does not. Therefore, there is now a difference in the net based rental amounts being capitalized which creates a much higher balance sheet impact for the gross lease than the triple net lease. The gross lease is capitalizing $33.50/SF onto the balance sheet and the triple net lease is only capitalizing $27.50/SF onto the balance sheet which accounts for the $1,435,368.00 balance sheet difference.
It is worth noting that these two scenarios do have different impacts on balance sheet and shareholder equity, but it’s also possible that a company that cares about EBITDA would prefer the gross lease structure if it could achieve Type A / "finance" lease classification, as that would shift taxes and insurance below the line for EBITDA purposes, while a net lease would leave them "above the line."
Click here for a summary of the new FASB lease accounting standards.
Find out more at www.fasb.org
Job Description / Responsibilities
Job Requirements / Qualifications
The requirements listed below are representative of the experience, knowledge, skills, and/or abilities required to successfully contribute to the team.
Education & Experience
Certificates and/or Licenses
Employment Type: Full-Time
Job Type: Associate
Education: Undergraduate Degree - Masters Degree a plus
Experience: At least 2 year(s)
Manages Others: Preferred by not required
Industry: Real Estate
Required Travel: Not required
Send Resume to: Pat Murphy (firstname.lastname@example.org)