Illumina

5200 Illumina Way, San Diego, CA | 700,000 RSF

The Challenge

Illumina was rapidly outgrowing its space and required expansion. It also had multiple UTC locations and wanted to consolidate. However, relocating would be expensive due to a ten-year existing lease obligation.

Strategy & Approach

Created strategic real estate plan:

• Created space program and space plan ​

• Priced capital expenditures ​

• Negotiated final transaction terms with suitable location alternatives ​

Created financial models:

• Comparing relocation vs. renewal ​

• For expansion and design/build components of lease​

Worked with existing landlord to sublease prior location and mitigate remaining lease obligation​.

Client Results

• 20-year lease for a total of 700,000 RSF by 2013 ​

• Four five-year options to expand ​

• Option to terminate in year 15 of the lease​

• Right to expand into one or more of three additional buildings that may be built at the facility​

• Right of first refusal in any potential sale of buildings