A local investor owned a multi-story office building and needed a strategic approach to maximize its value. In the short term, the goal was to minimize vacancy and tenant turnover while stabilizing cash flow. In the long term, the investor aimed to capitalize on the success of these leasing efforts by eventually selling the property at a strong market position.

To achieve this, we worked closely with the client to develop a proactive leasing strategy that would keep the building occupied, ensure steady rental growth, and maintain its appeal to potential buyers. With over a dozen office suites in the building, it was crucial to accommodate existing tenants as their space needs changed—whether expanding or downsizing. Our approach prioritized offering available spaces to current tenants before listing them on the market, creating a seamless transition for businesses already operating within the building. Additionally, we engaged with tenants six to nine months before their lease expirations to negotiate renewals or expansions. This proactive approach significantly reduced vacancies and strengthened the building’s financial stability.

Over time, these leasing efforts resulted in a fully occupied property with several large tenants secured on long-term leases. When the client decided to sell, the building was positioned as a highly attractive investment, standing out in a post-COVID office market filled with uncertainties and rising interest rates. While many office properties struggled, our leasing strategy ensured strong cash flow and long-term tenant commitments, making the building an appealing asset to other investors. However, due to increasing interest rates, a conventional financing deal would be difficult to secure, meaning the ideal buyer would need cash or 1031 exchange funds.

Despite these market challenges, we successfully secured a cash buyer at full asking price. While under contract, the inspection uncovered roof damage caused by a recent hailstorm. Instead of jeopardizing the deal, we worked with the seller to file an insurance claim, which was then transferred to the buyer at closing. This solution was acceptable to the buyer and was a creative approach to keep the deal on track for closing.

In the end, our long-term leasing strategy not only provided the client with steady income over the years but also positioned the building for a successful sale. By maintaining high occupancy and securing quality tenants, the client was able to sell at an optimal time and reinvest the funds into new opportunities, demonstrating the power of a well-executed commercial real estate strategy.