Challenges

Over the past decade the St. Andrews office submarket, which has historically been the most stable market in the Columbia region, began to experience a decline in occupancy as national companies slowed their expansion efforts and the State of South Carolina began to reduce its presence in the suburbs.  At year-end 2000, the occupancy rate for the St. Andrews submarket was 94.8%.  By year-end 2004 the occupancy rate declined to 72.3%.  Market occupancy began to rise in 2005 as the national economy was in a strong growth pattern.  As of year-end 2006, the occupancy rate in the St. Andrews submarket was 83.48%, but due to declines over the previous years, the occupancy at The Atrium at Stoneridge was 72.0%.  Colliers Keenan then suggested an aggressive marketing campaign to build the occupancy of Atrium to levels surpassing the market occupancy.

Services

Colliers Keenan created an aggressive marketing campaign along with the support from the owners.   The campaign was successful in that occupancy rose significantly above market occupancy rates thus allowing the owner to decide to place the building for sale on the investment market.  While the building was marketed for sale, the aggressive leasing program continued accelerating occupancy to an all time high in the building of 94.6%.

Results

By repositioning the property and changing its image in the suburban community, Colliers Keenan was able to execute 12 leases in 19 months, increasing the occupancy of the building from 72.0% to 94.6%.  By meeting the landlord’s goals of increasing occupancy without jeopardizing future rent income, the landlord was able to sell the asset at a higher than anticipated sales price in a declining economy.

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