PROVEN PERFORMANCE
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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.
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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.
