Abbott Medical Optics (formerly IntraLase Corporation)

Abbott Medical Optics
(formerly IntraLase
Corporation)
Irvine, California
100,000 SF
Cresa Orange County
Client Objectives
The client’s objective was to move their operations from a 42,000 SF building into a new facility of over 100,000
SF within a five-mile radius of their current facility.
Results
In a real estate market with only one viable facility alternative over 100,000 SF, Cresa was able to create and
implement an acquisition strategy that produced leverage and resulted in savings of $3.4 million. This result was
realized through a discounted rental rate, $500,000 of free rent and over $1 million in additional landlord
contributions. The planning and acquisition process was 14 months in the making while the Irvine headquarters
facility lease of 128,670 SF was negotiated in approximately six months.
Cresa negotiated that the landlord bear all costs to reface the building’s front exterior while insuring compliance
with ADA standards at no cost to the client. Included in the transaction was a one-time right for the client to
cancel their lease, the right to receive 100% of all sublease profits and a tenant improvement allowance in
excess of $3.2 million.
Prior to lease execution, the Cresa Project Management team identified serious electrical and HVAC systems
issues. This allowed the team to skillfully negotiate the replacement and relocation of both systems with the
landlord agreeing to incur all costs including all future maintenance costs over the lease term. This effectively
produced an additional $900,000 savings to the client. The rental structure was 21% lower than all known
comparable transactions consummated within a 10-mile radius over the previous six months. The
below-market rental structure, along with the other landlord concessions negotiated by Cresa, provided a
measurable savings to the client of over $4.6 million.