Office Asset Evolution

Creating Value Through Active Operations
As part of its real estate portfolio holdings, a client owned a mixed-use property located in a Baltimore sub-market with a below average occupancy rate and a high risk of reduced renewals from tenants.

Solution
We worked with the client to develop a strategy that included capital renovations, common area corridors and upgraded amenities, as well as a creative leasing strategy. Following the Investment Committee’s designation of minimal capital to make capital improvements and the implementation of a new leasing strategy, lease occupancy rose from 65% to 92% in the first twelve months, including success securing a new full-floor tenant and a ten-year renewal of an existing tenant. Low vacancy coupled with the aesthetic upgrades increased rents by 18.5%, ultimately yielded a capital return on investment of 28%.