Two single story office buildings with a total of 13 tenants, including Sutter Medical and other national and local tenants. In 2009, ProEquity stepped in to manage leasing and property management.
The project was over 80% occupied at takeover. Although the occupancy had been retained, only approximately 50% of the tenants were paying rent. Ownership was initiating monthly capital calls to cover, white receiving 30% of stated income.
We implemented a short-term leasing plan, coupled by a longer-term stabilization and management plan that included a mark to market approach on new leases, renewals, and the recapturing of operating costs. Implemented tenant-by-tenant “evict-and-replace” program to back fill the vacancy and ease client concerns, and we set up a cost analysis and renewal program to target renewing tenants’ operating expense baseline recapture rights by the Landlord.
Within 6 months, we brought in new tenants, all local and many unrepresented by other brokerage firms, increasing occupancy to 95% over a 3-year period with all tenants current. We renewed approximately 30% of rent roll, increasing recoveries by 20%.