AUSTIN, TX—A building at 2301 E. Riverside Dr. consists of a recently completed 16,875 rentable-square-foot office/retail building, a Capital One ground lease and a proposed site for a 29,205 rentable-square-foot office building. It had been marketed for a year to no avail.
ECR | Equitable Commercial Realty was selected to lease or sell the newly constructed building. After exploring the market for sale, pricing was not in-line with the clients' expectations primarily attributed to the office/retail building being vacant.
“I hired ECR after a year of unsuccessfully marketing a 17,000-square-foot retail building on E. Riverside on my own. The first thing they did was to evaluate the entire project and the market,” Charlie Tames of Riverside Interests LP explained. “They then suggested we change the approach from retail to creative office. Within 10 months, we were at full occupancy.”
ECR determined that as a pure retail location, the building didn't have the proper parking ratio so ECR proposed a plan to go after more creative-use tenants that would have a lower parking need. ECR worked with the ownership to build out multiple spec or white box spaces of various sizes. The owner started at the far end of the building where a current tenant was located and worked toward the front end cap space that would be more valuable at the end of the process. As soon as spaces were completed, each had proposals or leases within a month of completion.
“The white box space was when we started getting activity because the people could see what the space would look like,” Lee Ellison, senior brokerage advisor of ECR, tells GlobeSt.com. “Within a month after the first white box was in place, Athletic Outcomes took 1,7000 and 1,300 square feet.”
After being vacant for eight months, the entire project was leased in approximately 10 months to creative users such as architects, an advertising firm, two high-tech firms and a personal trainer. Not only did this strategy provide for controls over construction costs, ECR helped the owner maximize rates and secure a solid tenant roster with 100% occupancy.
Due to the achieved rental rates and quality of tenant, the owner has broken ground on a 29,205 rentable-square-foot office building in the project, with interest for 6,000 square feet so far.
AUSTIN, TX—A building at 2301 E. Riverside Dr. consists of a recently completed 16,875 rentable-square-foot office/retail building, a
ECR | Equitable Commercial Realty was selected to lease or sell the newly constructed building. After exploring the market for sale, pricing was not in-line with the clients' expectations primarily attributed to the office/retail building being vacant.
“I hired ECR after a year of unsuccessfully marketing a 17,000-square-foot retail building on E. Riverside on my own. The first thing they did was to evaluate the entire project and the market,” Charlie Tames of Riverside Interests LP explained. “They then suggested we change the approach from retail to creative office. Within 10 months, we were at full occupancy.”
ECR determined that as a pure retail location, the building didn't have the proper parking ratio so ECR proposed a plan to go after more creative-use tenants that would have a lower parking need. ECR worked with the ownership to build out multiple spec or white box spaces of various sizes. The owner started at the far end of the building where a current tenant was located and worked toward the front end cap space that would be more valuable at the end of the process. As soon as spaces were completed, each had proposals or leases within a month of completion.
“The white box space was when we started getting activity because the people could see what the space would look like,” Lee Ellison, senior brokerage advisor of ECR, tells GlobeSt.com. “Within a month after the first white box was in place, Athletic Outcomes took 1,7000 and 1,300 square feet.”
After being vacant for eight months, the entire project was leased in approximately 10 months to creative users such as architects, an advertising firm, two high-tech firms and a personal trainer. Not only did this strategy provide for controls over construction costs, ECR helped the owner maximize rates and secure a solid tenant roster with 100% occupancy.
Due to the achieved rental rates and quality of tenant, the owner has broken ground on a 29,205 rentable-square-foot office building in the project, with interest for 6,000 square feet so far.
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