CHALLENGE

6301‐6401 Jefferson NE is a 94,243 SF Flex Office Campus consisting of two buildings on 11.9 acres. The property was 100% occupied by a national home improvement retailer for its contact center. The tenant had vacated the property at the height of the pandemic and notified the owner they would not be returning to the premises and renewing their two respective leases, which were expiring in the next 12 and 24 months.

At the time the tenant provided their notice, more than 50% of the contact center space in the market, approximately a million square feet, had been vacated and was available. The growing vacancy of this segment of the office market made it highly unlikely that the space would be leased or sold to users needing similar space and requiring immediate occupancy.

ACTION

With construction cost outpacing inflation, it is often not financially feasible to construct a ground up project to accommodate an end user. The silver lining is that these recently vacated contact center buildings could be adapted for alternative uses for much less than the cost of new construction. REA created a competitive environment between buyers by implementing a broad marketing campaign in conjunction with direct targeted marketing to owner/users requiring similar sized buildings.

RESULTS

• Over a dozen showings in the first 30 days.
• Within 60 days of the property coming to market, negotiations commenced with over a half dozen qualified
  buyers.
• Within 90 days, sale terms were agreed upon with separate buyers for each of the buildings.
• Both sales closed prior to the expiration of the existing tenant’s lease and the debt maturing.