A large doctor’s practice, Greater Long Beach Orthopaedic Surgical & Medical Group, was impacted by new healthcare legislation and needed to reduce their costs. The tenant space was approximately 13,000 sf, occupied about 25% of the building and was on a triple net cost basis. Relocation was out of the question.
Bailes & Associates, Inc. was hired to negotiate a lease renewal. We negotiated a full service gross lease with tenant improvements and cap on controllable expenses. We dropped their starting base rent by $0.34 sf from their current rate of rent.
The client has a lower cost lease, reduced operating expenses and the ability to make needed improvements to their space. They hired Bailes & Associates, Inc. to represent them with three additional office sites.
According to Barbara Ledoux, Office Manager, Greater Long Beach Orthopaedic Surgical & Medical Group: “It has been a pleasure working with Gary Pepp over the course of several years. Our large medical group has multiple commercial leases with different subleases. Gary has always been very professional and diligent in giving us our options and making recommendations that were in the best interest of our group.”