Chatsworth Products, Inc.

Westlake Village, CA
16,034 SF

Cresa Los Angeles

 

Client Objectives

Chatsworth Products, Inc. (CPI) wanted to determine if their current facility would be a good fit for future space needs and also wanted to avoid overpaying on a renewal. The property was a single-user building in an excellent location and was built out specifically for this tenant. The landlord requested that CPI use the option to renew language found in the lease document.

Result

After evaluating the client’s space needs, it was determined that the building would be adequate for a five-year renewal. Cresa recommended that CPI not exercise its option to renew 12 months before the lease expired. Even though the client did not want to move, Cresa was able to use other available space as leverage to reduce the renewal rent from $1.66, based on the landlord’s opinion of fair market, to $1.37, saving CPI $278,000 over the lease term.