8220 San Pedro Dr. NE
Albuquerque, NM 87113
RECENT CLIENT SUCCESS
FROM STRUGGLING TO SUCCESS
The Paseo Nuevo Office Property, a Class A 5-Story Multi-Tenant Office Building in Albuquerque's coveted North I-25 corridor, encountered several challenges. These included a high vacancy rate due to the anchor tenant's departure, leading to revenue loss and impacting financial returns. Additionally, in-place rental rates couldn't cover rising operating expenses, resulting in declining returns. The pandemic worsened matters, causing further tenant vacancies during the lease-up period and straining the property's performance.
To tackle these challenges, the property leasing team launched a targeted marketing program, employing two key actions. First, they adopted a proactive marketing strategy to attract new tenants that aligned with the vacant spaces, reducing out-of-pocket leasing costs. Second, the team identified tenants who recognized the property's value and offered increased rental rates, seeking to establish long-term and high-value partnerships.
- Full Occupancy: As of March 2023, Paseo Nuevo successfully reached a 100% stabilized occupancy rate.
- Rental Rate Growth: Over a span of four years, the property managed to secure new leases with increased rental rates of over 30%.
- Diverse Tenant Portfolio: The property's targeted marketing approach attracted a more diverse mix of national credit and professional local tenants, mitigating risk and ensuring a stable revenue stream.
- Long-Term Leases: The marketing efforts also led to a substantial increase in the average lease term for tenants, providing stability and predictability for the property's future income, assuring investors of sustainable returns.
Paseo Nuevo's success story exemplifies how proactive marketing and tenant alignment turned a struggling property into a thriving Class A office building, showcasing the power of innovative solutions and market understanding in achieving lasting success.