PROVEN PERFORMANCE
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Situation
- Stonebridge I & II were sought after by prospects seeking occupancy in the northwest submarket, but were fully leased for the last 18 months.
- Three Fortune 500 tech heavyweights occupy over 200,000 SF in the two buildings, totaling 54% of the project.
- The ownership wanted to accommodate the three creditworthy tenants’ expansion plans but were concerned about the possibility that one or all of the tenants could be lost due to the lack of immediate expansion space.
- The building parking was at a ratio of 1:770 SF, which was below average for the area. Parking rates were also below market and needed to be increased.
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Action
- Stream’s leasing team prepared a leasing strategy in January of 2013 that provided the large tech tenants in the buildings with expansion timelines based on the other tenants rolling in the buildings.
- Stream also identified and met with the tenants that were needed to renew early to help offset the roll of the buildings and aid in creating a more diverse tenant base.
- All sublease spaces in the buildings were recaptured to take advantage of the all-time high rental rates being achieved, and termination fees were used to offset the deal cost associated with re-leasing the spaces.
Results
- In 18 months, 135,888 SF of renewals and 56,468 SF of expansions were completed.
- The rental rate was increased over the same period.
- In addition to the large tech tenants, numerous other tenants in non-related fields also expanded in the buildings while adding additional term.
- Two of the three tech tenants have expanded and renewed in the buildings.
- The leasing strategy that was implemented got out in front of the building’s roll and kept the tech tenants’ expansion plans intact.
- The high occupancy of the buildings remained the same but rates were increased, terms were extended and the buildings continue to be the gold standard among the competitive set.
