Walton Street Capital owns over 322,000 SF of multi-tenant industrial product in the West San Fernando Valley. Six units were vacant in Fall 2008 with fifteen additional leases set to expire in 2009. Vacancy was rising dramatically for units ranging from 2,000 to 15,000 SF in the West San Fernando Valley with over 100 available units in the submarket.
Rather than waiting for the market to deteriorate further, in November 2008 the team advised the landlord to get aggressive and lower the first year asking rate to half off on a five year lease. TEAM DeGRINIS also advised their client to offer a bonus commission to the procuring broker. No other competing landlords were offering these incentives at the time. In addition, the team enacted an aggressive marketing strategy through door-to-door cold calling and follow up.
Within only six months, TEAM DeGRINIS completed eight new lease deals, as well as eight lease renewals. The team also discovered that procuring brokers had a tendency to submit the available units at these business parks to their clients first and foremost, knowing the first year rate benefits their client, and the bonus fee benefits the broker.
Click here to see current Lurline Business Park availabilities.
Click here to see current Chatsworth Business Park availabilities.