How to Attract Tenants Back
In the recession, many mom-and-pop office tenants moved business operations into their homes to save money, says Boxer Property property manager Larry Lippincott. (Their kids were all moving home, too, so those were cramped houses.) Now, his firm is trying to lure them as well as large traditional tenants back by repositioning its Class-B assets with property improvements and amenities that would encourage these tenants to sign office leases again. These amenities have been standardized throughout its 18.9M SF, 182-building portfolio throughout the US, he says.
This ongoing modernization is the brainchild of Boxer Property president Justin Segal (above, at a Bisnow event in Houston). Larry tells us upgrades include tenant centers with modern finishes (think upscale sealed concrete and glass doors and walls), HDTVs, kitchenettes, audio-visuals setups, and coffee bars; conference rooms; collaboration areas; in-building delis (ok, we're sold... you had us at deli); and in some buildings—particularly its Texas properties—gourmet food trucks. Boxer Property national director of leasing Alex Kakhnovets tells us that its leasing strategy centers around this kind of investment, with amenities and design that are more consistent with office tenants' use and demand.
The firm just wrapped up upgrades to Metrocenter Business Park I at 10000 North 31st Ave (it also owns Lakeside Center at 11225 North 28th Dr). Another popular option among these tenants is turnkey spec suites, which Larry says they can sign for—and even move into—in under an hour. Recent deals completed there include Ace Marketing, Islandwide Solar, Phoenix Management Solutions, and Guardian Angel, which saw asking rents of $14/SF versus $18/SF for nearby properties. Outside of work, Larry is an avid blood and plasma donor to United Blood Services (“they can usually get two units of plasma out of me per visit,” he says). So far, his record is 24 donations in one year.
