Palmetto Bay Village Center Case Study
18001 Old Cutler Rd, Palmetto Bay, FL 33157
Size: 280,000 SF
During the recent recession, this Property lost a number of tenants. In 2012, the property faced the loss of two tenants which equaled almost 33,000 sf causing occupancy to plummet below 60%. Although the asset is a Class A property, brokers and tenants overlooked it due to its southern location within a residential area.
The majority of our strategy involved a detailed and intensive marketing program. We initiated a strong re-introduction and re-positioning of the property to both brokers and tenants. The marketing effort had multiple approaches.
Based on feedback from brokers that the property looked “tired” and in need of “freshening”, we recommended to ownership to pressure clean the building and freshen the common areas with paint and new artwork. In addition, the ownership also added a gym and renovated the existing café.
We recommended a 15% increase in rental rates. Our rationale was not to sell on price, but to sell on the beauty of the asset and amenities. This strategy has been effective and those rental rates were attained.
First, we negotiated with CoStar to change the boundaries of the Kendall submarket to include this asset, which was previously listed in South Dade, which is rarely searched by brokers. This enabled the property to appear in more broker searches on the database. We also signed a one-year advertising agreement with Costar so the property was prominently featured in all Kendall submarket searches.
Our listing began in March 2012 and we immediately launched a March Madness basketball contest. This quickly gained positive exposure to the brokerage community and began the re-positioning message of a “broker friendly” property.
Ownership wanted a direct relationship with local brokers, so during all ownership property visits, we arranged lunch and breakfast meetings with prominent tenant rep brokers. Between March 2012 and December 2012, we personally introduced over 50 brokers to our ownership thus enabling the owner to convey a personal message of cooperation. This was a highly successful part of the re-positioning which led to multiple prospects that would have otherwise potentially overlooked the property.
In August 2012, we launched a very popular College Football contest which used a weekly email program to entice brokers to participate in the contest plus sending them a variety of messages about the property. This year will mark our third year of this highly successful campaign.
We began featuring the property twice a month in an advertisement in the Sunday edition of the Miami Herald’s Neighbors section. Within the first 30 days, our marketing team created a new logo and new tag line for brochures, website and other promotional materials.
We upgraded the LoopNet listing to premium which resulted in an influx of direct inquiries.
Ownership provided an on-site leasing office and conference center. It served two purposes. First it enabled us to easily handle walk-in prospects. Secondly, with its building standard finishes, Teknion furnishings and terrace access, it pushed the Class A branding message. This on-site leasing office proved to be a very successful strategy.
The leasing team became engaged with the local business community by attending local civic and business events. One example is our annual VIP Hospitality Tent at the Deering Estate Seafood Festival.
Within four months, we increased leasing activity tenfold. By the end of 2012 (nine months), we increased occupancy by over 9% with a positive absorption of over 20,000 sq ft. Within 12 months of commencing this assignment, we signed a 60,000 sq ft tenant which increased occupancy to 88%.