Case Study: Early renewal of headquarters lease to reduce cost & lock in lower rate

Carrie resolved our corporate real estate needs professionally and cost effectively. Her market knowledge, tenacity, objective advice and negotiating acumen was tremendously beneficial to our organization, as was her assembling the best in class team to design efficient space and stretch our construction dollars. We look forward to working with Carrie again.

Douglas A. Mullins, CPA, Chief Financial Officer Pressley Ridge

Pressley Ridge

Challenge

Pressley Ridge is a nonprofit organization established in 1832 in Pennsylvania. Today, they provide services in Education, Treatment Foster Care, Residential, and Community-based programs to over 6,000 children, adults and families annually in six states and have a budget in excess of $80 million. Some two and half years prior to its lease expiration, Pressley Ridge turned to Carrie to determine if renewing or relocating the headquarters would prove the best, long term corporate real estate decision.

Action

Carrie worked with the chief financial officer and director of facilities to identify Pressley Ridge's needs and tenant improvement requirements. Then she surveyed the north hills and north shore to identify all viable leasing options, both existing and proposed. After tours and leveraging the market, several rounds of negotiations were conducted at multiple buildings until the most attractive, multi-million dollar financial arrangement was negotiated and a lease was secured that will protect Pressley Ridge for the long term. Its current location, in which Carrie had negotiated the original lease ten years earlier, proved to be the most attractive leasing alternative.

Results

  • Carrie negotiated a $2.00/SF reduction to the escalated base rent
  • Early renewal to reduce the cost & lock in lower rental rate
  • T.I. allowance in excess of $650,000
  • Updated base year for operating & tax expenses
  • Right of first refusal on adjacent floors
  • Termination option
  • Renewal option
  • Pressley Ridge has enlisted Carrie multiple times

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For more information, contact Carrie S. Holstead at

+1 (412) 255- 3737
carrie@carrieholstead.com

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