KBS Drives Up Office Occupancy 60% in Nine Months

ATLANTA—What does it take to drive up occupancy in an Atlanta office building by 60% in just nine months? KBS Strategic Opportunity REIT isn't sharing all its secrets, but it is offering some hints worth noting.

For starters, the Newport Beach, Calif.-based public non-traded REIT just announced a massive leasing push—107,495 square-feet of deals to be exact—at its Powers Ferry Landing East office building in Atlanta. The property, which was 24.86% occupied in mid-2013, now stands at 85% leased.

“KBS Strategic Opportunity REIT was able to capitalize on the recent sale of 6151 and 6201 Powers Ferry Landing East to Fulton County Schools by signing tenants that were scheduled to vacate those buildings,” says KBS Capital Advisor senior vice president Jeff Rader. “Tenants have been attracted to the significant improvements underway at the asset which includes a new lobby, cafe, conference facility, and fitness center.”

In all, KBS inked 15 new leases. Those deals include a new 26,339-square-foot lease by LOMA; a new 11,890 square-foot lease by Penton Business Media; a new 9,505-square-foot lease signed by MGIC; and a new 6,798-square-foot lease signed by Stern and Edlin. Georgia Banking also leased additional square footage of 16,889.

Located at 6190 Powers Ferry Road about 14 miles north of Atlanta's Central Business District in the Cumberland/Galleria submarket, Powers Ferry Landing East spans 149,324 square feet. The building is part of a three-building office park. KBS sold the complex's two other buildings in late 2013.

KBS also owns in Georgia the 188,509-square-foot Northridge Center I & II in Atlanta and the 34,830 square-foot Village Overlook I & II in Stockbridge. KBS-affiliated companies own the 138,068-square-foot Overlook I, the 160,540 square-foot Royal Ridge, and the 157,902 square-foot Great Oaks Center in Alpharetta.