Former Properties

West Memorial Park
Houston, Texas

Upon taking over the management and leasing of this project in 1998, the occupancy was approximately 54 percent and tenants were vacating as leases expired due to increased rental rates and inflated operating expenses.

SITUATION

  • 11 building, 16 acre business park in the Katy Freeway submarket
  • Property 54 percent occupied compared to a 95 percent market occupancy
  • Under-performing asset due to lack of a marketing effort
  • High operating expenses
  • Project rents were 32 percent below market

INITIATIVES

  • Achieve 90 percent occupancy by year-end 2000\
  • Correct deferred maintenance
  • Improve project’s appearance and awareness
  • Implemented aggressive marketing and leasing programs
  • Complete a much more detailed operating and capital budget
  • Initiate a $1 million capital program to improve appearance and correct deferred maintenance

RESULTS

  • Completed 62,000 sf of leases at $1 per sf above proforma during first six months
  • Successfully negotiated 278,000 sf of lease transactions in first three years at an average of 40 percent above original project rents
  • Greatly exceeded 90 percent occupancy goal reaching target by year-end 1999
  • Capital improvements and marketing program significantly increased awareness with brokers
  • Tenant satisfaction and retention soared due to more proactive management approach
  • Reduced operating expenses by an average of 11 percent in each of the first three years