Situation Analysis
Following a strip-down and rebuild in 2001, Briar Forest
Crossing was re-leased to 46 percent occupancy in 2002. To
complete the lease-up, the property needed a major marketing
overhaul. The office building, located at 1300 West Sam
Houston Parkway in West Houston, had several qualities that were
attractive to tenants: outstanding location, large floor
plates, high-tech infrastructure, new interiors, and an
attractive exterior.
Despite its attractiveness, the property was not competitive.
Its institutional owner had not stayed current in the market.
An array of lease components, from tenant improvement
allowances to broker commission payments, were not competitive. The
3/1,000 square foot parking ratio was also below market
standards.
Owner's Goals
A new owner purchased the building in December 2003. The new
owner wanted to add value by improving occupancy to 90 percent and
potentially to re-sell the property within a year.
Strategies & Solutions
The new owner selected Mark Preston and his team to launch an
aggressive marketing campaign to reposition Briar Forest Crossing
as a player in the West Houston submarket. Brokers were
guaranteed 100 percent commission payment upon lease
execution. Flexibility in free rent, tenant improvements,
rate structure, and other concessions were key components of the
new leasing program. With Mark's help, Briar Forest
Crossing's leasing team became known as creative deal makers.
For one large tenant, currently occupying one-third of the
building, Mark suggested a configuration that utilized an existing
intra-floor stair case. This idea, along with the economics
of the new marketing program, was a major contribution to
attracting the new tenant.
The team also negotiated an option on an additional 50 parking
spaces at the adjacent building to pump the leasing packages for
large tenants and to ensure that the garage was not
over-committed.
Results
Within 10 months of ramping up the marketing and revamping the
lease offerings, Briar Forest Crossing was leased to over 90
percent - even during a change in ownership. Mark's careful
development of a growth-oriented tenant base has already resulted
in internal expansion by several tenants. With the new rent
roll, the property's value has doubled.