National Dentex Corporation (NDX)
With more than 35 locations across the US, National Dentex Corporation (“NDX”) was the largest dental lab network in the nation. Cresa took over NDX’s portfolio from a national brokerage to deliver a fresh approach to handling the client’s various needs. Being owned by a private equity firm, profitability through contained costs was their main goal.
To achieve that, the client engaged with Cresa for professional advisory services, providing them with:
- A single point of contact with a high level of service
- Central depository of lease documents and key dates
- Driving cost savings during rollover of leases
- Increased space efficiency
- Mitigated risk during build outs
Many of NDX’s labs were in tertiary markets where it was challenging to find alternative locations. The high cost associated with building out a lab made a move problematic, and many of their landlords were the previous lab owners, who were aware of this difficulty. This made it hard to use the market as leverage.
In each market, Cresa partnered with its local affiliate or, in the smaller markets, with an established local tenant rep firm. A strategic plan was mapped out to decide the worthiness of relocating or renewing. Then the plan went into action.
In one location, the landlord of the lab had withheld over $300,000 in economic incentives provided by the local government 10 years prior. It wasn’t until Cresa looked over the lease that they discovered this was an oversight by NDX and the landlord. The owed amount was promptly paid by the landlord; however, if this lease was not thoroughly reviewed, it may have never been paid.
Now when NDX considers buying a lab, they bring Cresa in to provide local market intelligence using their valuation services. This gives NDX footing when negotiating a lab purchase.
Cresa has completed seven renewals to date with NDX, which resulted in:
Cresa has achieved $242,000 reduction in rent (an average of 4.4% of the term rent) on 97,000 SF leased.
From those renewals, Cresa has garnered $413,000 in tenant improvements for lab renovations.
Looking over each location’s lease unearthed $300,000 owed in economic incentives for one location; if ignored, it may never have been paid to the client.
Single Point of Contact
Cresa created a dashboard which allows NDX and Cresa to monitor all locations and key dates and makes it easier to oversee nationwide operations.
Cresa was retained by the client in 2016 and has continued to service NDX’s portfolio. The client currently engages with Cresa in strategic planning, site selection for new or relocating labs, renewal negotiations, valuation services and project management. Cresa has since been called in to oversee NDX lab projects in Reno, NV and Indianapolis, IN.