Challenge

In 2003, One Corporate Center I & III, two Class B properties were posting a 25% vacancy rate in the depressed Southwest Office Market of the Twin Cities.

Solution

The Colliers Team, comprised of leasing, management, and engineering, developed a comprehensive plan to differentiate itself from the stagnant Class B market by promoting the properties'strengths – location, on-site management, responsive engineering staff, extensive glass line, shallow bay depths and property amenities.

The Team assembled a leasing program to include competitive rates with aggressive annual increases, along with a tenant improvement package that was scrutinized to fit the buildings' best interest. Because of strong communication lines between ownership and the Colliers Team, we were able to provide quick turn around and responsive negotiations.

The on-site management and engineering focused on improving the mechanical operations and servicing new and existing tenants. Improvements were made to heat pumps, plumbing corridors, stairwells, parking lot and landscaping for increased building functionality and aesthetic appeal. The property manager was often included on property tours with prospective clients to insure complete showcasing of all building functions.

With extensive marketing efforts, the Leasing Team canvassed the immediate submarket through phone calls, door to door visits and direct mail, resulting in nine new tenants moving to One Corporate Center I & III from neighboring buildings. The Leasing Team continuously worked to improve their marketing efforts and as recently as August of 2006 hosted a junior broker marketing event. Because the vacancies ranged from 1,500 sf to 5,000 sf, this event reached the brokers that traditionally work with smaller users.

Results

The combination of the above factors increased occupancy to over 90%. The properties are now viewed in the marketplace as attractive options for the tenant wanting a Class A location at Class B rates. The Teams immediate and intense marketing plan and improved broker/tenant relations were keys to success on this assignment.

 back to top