Below are a few Case Studies On Cost Saving Transactions Completed By Cresa – The Triangle’s Premier Tenant/Buyer Representation Firm -
Cresa Assists Raleigh Endocrine Associates in Relocating Medical Practice
Challenge: Identify, negotiate and move Raleigh Endocrine Associates, a thriving medical practice out of an outdated, functionally obsolete building. The practice operated from its original location for 29 years, with five expansions during that period. A portion of the doctor group had ownership within the building. Space configuration was old, outdated, and had terrible efficiency for work flow. This caused less patient turns and limited income potential. The existing site was located next to a major hospital.
Action: Raleigh Endocrine Associates engaged Cresa to identify additional submarkets within hospital areas for less cost and no out of pocket expenditures. Cresa identified five viable options, negotiated three proposals, and evaluated best subjective and economic conditions for each location. The client chose a location in a different submarket that would ideally work for them.
Result: The client chose the ideal building located at 2709 Blue Ridge Parkway, a class “A” building on a busy corridor adjacent to a major hospital. Cresa obtained ten months free rent and operating expenses for a ten year term with a seven year “out clause” for the client. The new location included new, high-end finishes, and the overall rental rate was 21% less than the old office space. The client also engaged Cresa’ Project Management services to oversee the design, construction, and move management. Project management fees were billed to landlord as part of tenant improvement allowance, achieving an overall savings of $74,000 for Raleigh Endocrine Associates. Client did not pay any out of pocket costs and had no holdover/overlapping rent payments.
Cresa Assists Arcadis in Expansion of Business
Challenge: Arcadis needed to expand and there was no available space at their existing location and few viable options existed in the West Raleigh submarket. Being an architectural and engineering company, Arcadis desired to be in a building which they had designed and engineered in order to make a statement to their clients and the community.
Action: Cresa determined that a build to suit would provide them with the space they needed and the opportunity to do the A&E work.
Result: Through an extensive RFP and developer interview process, Cresa was able to bring the opportunity to design and engineer a 100,000 square foot office building for Highwoods Properties and negotiate a below market, 10-year lease transaction for Arcadis. Arcadis became the lead tenant in the building with rights to building signage.
Cresa Assists Global Information Company in Purchase of Data Center
Challenge: Cresa’s client, one of the world’s leading information-centric consultancy firm in information infrastructure solutions, needed to locate a new data center for its research & development and cloud computing initiatives. As energy consumption is a major cost component of data centers, finding low cost power was a primary driver for where the facility should be located.
Action: Cresa evaluated numerous potential locations throughout North America, looking at many factors including the availability, reliability and cost of electricity, economic incentives, security, fiber connectivity, and labor force.
Result: The Raleigh/Durham area was selected as the optimum location, Cresa found and negotiated the purchase of an ideal property to house the data center. The 450,000 square foot building, purchased for $22 Million, provided our client with the necessary infrastructure on which to build the data center. In addition, Cresa was instrumental in securing an incentives package valued at more than $8 Million from state and local governments.