Tom van Betten Cassidy Turley San Diego Qualcomm Inc. 5355 & 5375 Mira Sorrento Place, San Diego 119, 381 square feet Total consideration: Confidential
About the property: Qualcomm only needed three years of occupancy before the company’s owned building would be available. The short-term nature made it difficult to justify a move, and therefore limited the leverage available with their current landlord, EOP (Blackstone). The Sorrento Mesa submarket had a vacancy factor of below 4 percent and rents were rapidly rising. There were no comparable spaces available in Qualcomm’s preferred Sorrento Mesa submarket. There was less than approximately one year left on Qualcomm’s lease when Cassidy Turley was engaged in the transaction.
Closing the deal: Cassidy Turley helped Qualcomm build a strategy around breaking up the business units into smaller blocks of required space, creating leverage through a larger competitive set. The adjacent submarkets of Campus Point and Eastgate Mall were engaged to improve the amount of options available to Qualcomm. Requests for proposals for relocation options were sent with five-year terms, improving credibility.
Tom van Betten of Cassidy Turley was able to lock in a shorter-term renewal in a market with rapidly rising rates and few alternative properties to choose from by creating a strategic, leveraged solution.