In the fourth quarter of 2014, total availability among Class B office buildings in the East End and CBD reached its highest level in over ten years.
1432 K Street NW was 50.0% leased and had not executed a new lease since January 2012.
An international lobbyist group, a full floor tenant, was set to expire at the end of 2014 and had announced its intention to relocate – a decision that would reduce occupancy to nearly 40%.
Quoted rental rates at the building were $38.50+E and the previous leasing company was submitting proposals to prospective tenants at rates as low as $34.50+E.
Stream was hired in September 2014 and relocated its offices to the building’s 7th floor.
Stream immediately leveraged its on-site presence to improve the level of customer service offered to existing tenants.
Stream designed high-end physical and electronic marketing collateral that reintroduced the building and its availabilities to the tenant rep community.
Stream produced a direct mailer to highlight the building’s end-cap location and superior views. Stream identified and targeted 100 specific tenants that had back-alley views or were currently located in a mid-block building.
Stream hosted weekly happy hours for individual tenant rep teams. Stream would show off the available space and then treat the team to happy hour at one of the neighboring restaurants.
Stream quickly secured a renewal with the lobbyist firm. Knowing that the landlord was sensitive to immediate cash flow and needed to reserve funds for future lease-up, Stream structured the renewal to include a staggered abatement period and did not offer a TI allowance.
Stream executed three new leases within 150 days of taking over the assignment, and the combined leases will push occupancy from 50% to 84%.
Following a tenant rep inquiry in response to an e-blast announcement, Stream executed a full floor lease with a consulting firm at $37.50+E within 30 days of taking over the assignment.
The Stream leasing team had a direct relationship with one of the board members of a major non-profit organization, which was in the process of relocating its headquarters from Atlantic City to Washington, DC. Through this relationship, Stream secured a seven-year full-floor lease with the group at $38.00+E.
Upon receiving a postcard mailer from the Stream creative team, the COO of a local non-profit reached out directly to the Stream leasing team. Stream toured the organization through the building the following day and within one week, executed a full-floor LOI at $39.50+E.