515 Congress – Austin, TX

StreamAUSTIN, CASE STUDIES, OFFICE LEASING

515 Congress

Austin, TX

In April of 2013, 6th and Congress Properties, LLC hired Stream to Lease 515 Congress, a 258,000 SF, 87% occupied building with 35% of the building rolling in the next 12 months.

SITUATION

  • 515 Congress is an older building in a great location. The building’s marketing materials were dated and the building was not well-branded.
  • The building had an image that attracted very traditional tenants, which was different than the tenants looking for space.
  • 35% (90,000 SF) of the building was rolling within 12 months of hiring Stream, including Bank of America, the 50K SF anchor tenant.
  • Rental rates of the rolling tenants drastically needed to be reset.
  • The building’s previous owner notified the business community that there were plans to redevelop the entire block, including 515 Congress, giving prospective tenants uncertainty.
  • The parking ratio was 1:770 SF, which was below average for the CBD. Parking rates were also below market and needed to be increased.

ACTION

  • Updated the marketing collateral.
  • Built out spaces in the building as “creative space” (exposed ceilings, stained concrete floors, open concept).
  • Diligently worked to stay in front of tenants coming up for renewal to educate them on changes in the market.
  • Helped devise a plan for ownership to keep 515 Congress intact while redeveloping the adjacent building (501 Congress) into a 116,000 SF, Class A building.
  • Increased parking rates to market.

RESULTS

  • Provided insight to prospects of how creative space can be achieved in an older building. All spec creative space was leased.
  • Completed 111,000 SFof leases in the first 14 months (55,000 SF of renewals and 56,000 SF of new leases).
  • Raised the NOI of the parking garage by 35% while getting better control of the garage.