Analysis of Coyote Real Estate Leases & Subleasing Strategy

March 30, 2026 at 10:23 AM|15 min
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Bottom Line

The team is analyzing a portfolio of Coyote's real estate leases to determine which liabilities to assume, with a focus on subleasing the high-cost Balboa (Sylmar) location. The Norris (Sun Valley) site, while significant, is considered less critical due to its integration with Coyote's core campus.

Key Takeaways

Lease Portfolio Analysis:: The team is reviewing Coyote's lease obligations, with the Balboa ($107K/month) and Norris ($40K/month) locations identified as the primary targets for subleasing.

Strategy Focus:: The priority is to take on and sublease the Balboa corporate office, while potentially avoiding the Norris warehouse due to its entanglement with Coyote's adjacent stage operations.

Expert Support:: Speaker A offers to provide a detailed analysis of market comps and subleasing confidence intervals for each site to inform the strategy.

Decisions Made

• Focus subleasing efforts primarily on the Balboa location — driven by Speaker C

• De-prioritize assuming/subleasing the Norris location — driven by Speaker C
Action Items
Run an analysis for each site showing market comparables and confidence intervals for subleasing timing and rent. — Speaker A
Add a cost per square foot column to the current lease analysis workbook. — Speaker B
Share the raw lease data from Coyote with Speaker A for their analysis. — Speaker B
Clarify the specifics of what real estate (e.g., the lot vs. stages) would actually be part of the deal for the Norris location.
Connect with contacts in Georgia and New York jurisdictions to assess clearing the small footprints there. — Speaker A
Decisions
Focus subleasing efforts primarily on the Balboa (Sylmar) location as the most meaningful obligation to address. — Speaker C
De-prioritize assuming or subleasing the Norris (Sun Valley) location, viewing it as Coyote's problem due to its integration with their core campus. — Speaker C
Topics
Lease Portfolio Review Subleasing Strategy Site-Specific Analysis (Balboa, Norris) Market Comparables Lease Obligations

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