Case Study: Precision Drilling Corporation achieves $2.8M in real estate savings and a lower-cost lease with Cresa

Leveraging the Market to Recast a Lease

Precision Drilling Corporation, a Houston-based energy company occupying 59,569 SF, needed to decide whether to terminate its lease three years early and potentially relocate to take advantage of surplus sublease space and better economics. Focused on modernizing its office to improve recruiting and retention, Precision Drilling engaged Cresa for Transaction Management and Project Management to evaluate options and recommend a course of action.

Cresa advised early market engagement, identified multiple alternatives and used those options to leverage Precision Drilling’s landlord into renegotiating the existing lease rather than risk losing a strong tenant. The amended lease delivered a substantially lower rental rate, a generous tenant-improvement package, free parking and an extended five-year term, generating more than $2.8 million in real estate savings for the client.

Precision Drilling Corporation