A case study on tenant retention, security enhancement, and successful lease strategy implementation during a global crisis.
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The Challenge
The Awake Professional Building, a retail storefront and medical use space situated at a busy corner with ample foot traffic in Magnolia Center, was significantly underperforming. The property was operating at a meager 15% occupancy, courtesy of poor management with no experience in commercial properties.
To add to the woes, the property faced severe security challenges due to an escalating homeless situation. Primior was entrusted with the task of transforming this struggling property into a thriving commercial hub.
The Approach
Primior commenced the turnaround with a two-pronged approach – enhancing the leasing strategy and mitigating the security issues.
On the leasing front, Primior took the bold step of shifting from a Full Service Gross (FSG) lease to a Triple Net Lease (NNN), which ensured that tenants were responsible for property taxes, insurance, and maintenance costs, resulting in lower operating expenses for the property owner. They then undertook an aggressive marketing campaign to attract suitable tenants.
To address the security challenges, Primior instituted a comprehensive security upgrade that included increasing the number of cameras, posting ‘No Trespassing’ signs, and installing anti-lockpick guards on doors. Additionally, they boosted roving security and property walks and collaborated with the local police force to ensure safety.
The Outcome
Within months, Primior’s strategic approach started showing results. Despite the COVID-19 pandemic, occupancy levels soared to an impressive 86%, a significant leap from the initial 15%. The leasing strategy ensured steady revenue streams, while the comprehensive security measures alleviated the homeless situation, making the property safer for tenants and customers.
This case study serves as a testament to Primior’s comprehensive property management capabilities. Even during a global crisis, their strategic approach and professional expertise transformed a challenging situation into a successful investment opportunity.
