Situation
A 7 storey downtown Regina office building comprising 45,141sf fails to attract new tenants as a result of higher than market operating costs, poor mechanical systems, and dated interior building finishes. The result is an overall vacancy rate of 55%.
Solution
Our approach to marketing to new perspective tenants consisted of the following:
- Analyze the current property operating and expense budgets identifying areas where savings could be realized.
- Review and identify mechanical and base building deficiencies and manage the relevant repair and replacement projects.
- Work with the ownership to identify building areas which require upgrade and modernization such as the common areas, elevators, and public washroom facilities.
Outcome
During the first year of assuming management of this property, the critical building mechanical systems were or are currently being upgraded as well as three building renovation projects are currently underway. They include the modernization of all floors public washrooms, the relocation and expansion of an existing tenant, and the addition of a new 16,660sf tenant thereby reducing the vacancy rate to 18%.