Success Stories

Pall Corporation

San Diego, CA
25,773 SF
Cresa San Diego
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Client Objectives

Pall Corporation, our client, wanted to remain in their current building in Sorrento Valley and renew the lease while substantially reducing their occupancy costs. Our client had spent over $275,000 repairing and upgrading their current facility and HVAC system over the course of their lease, and did not need any additional retrofit to the property. Most of the equipment our client installed was immovable, and their lease contained a retrofit clause, which obligated them to restore the building to its prior condition upon moving out (a cost approximately $350,000). Their current facility provided a distinct business advantage with an available fresh water supply of approximately 60 gallons of water/minute (100,000 gallons/day), which was necessary for their filtration systems. Finally, the Sorrento Valley market is mostly comprised of R&D buildings much larger than the client’s requirement.

Results

Cresa worked with Pall Corporation’s management and developed a strategy to achieve all of their objectives. After a successful market search for appropriate comparable properties, Cresa enrolled other landlords who were motivated to pay for Pall Corporation’s relocation costs. Our team successfully created a dialogue with the existing Landlord that convinced the Landlord that competitors would negotiate lease rates below the rates the incumbent Landlord was proposing. With this credible information, our client’s Landlord reopened negotiations and reduced their offering rent substantially. In addition, Cresa negotiated the elimination of the retrofit clause from the lease, two very compelling issues. Our client now operates in their existing facility at a lower cost than they had originally projected, and they are no longer exposed to a substantial expense at the end of their occupancy.

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