Success Stories

SmartDraw Software

San Diego, CA
19,908 SF
Cresa San Diego
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Client Objectives

SmartDraw is a software company specializing in visual processing used to create flowcharts, organization charts, mind maps, project charts, and other visuals. Headquartered in San Diego, the client's current facility worked well but there was no apparent need for them to be in a Class "A" office building. Employee retention is a significant factor for SmartDraw and the disruption of a move could be an unnecessary disruption. The goal was to test the marketplace, in particular Class "B" buildings, create leverage, and with approximately 12 months remaining on their existing lease, negotiate an early renewal.

Cresa San Diego worked with an internal client team comprised of members from operations, finance, and IT. In order to properly address the trade-off between rental costs and employee retention, multiple submarkets were considered, including UTC, Sorrento Mesa, and Rancho Bernardo. After completing a thorough market survey and touring a short list of potential buildings, a strong alternative to SmartDraw's current location was identified – the Class "B" building with very strong institutional ownership had been vacant and on the market for over five year. The economics proposed were extremely aggressive and created the perfect leverage point with SmarDraw's existing Landlord.

Cresa Team Members

Results

Cresa San Diego was able to negotiate a substantial discount off the current rental rate, as well as up-front concessions, including but not limited to:  a complete refurbishment of existing entryway, paint & carpet allowance, and free rent package. Cresa San Diego decreased operating expenses 34% with a total savings of over $230,000 in the last year of their remaining lease obligation. Furthermore, through negotiating a new lease document, free rent, and retroactive rent reduction, Cresa San Diego achieved the lowest per-square-foot rate in the subject Class "A" project.

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