4401 Westgate

Challenge

AT&T occupied 50% of 4401 Westgate with plans to move out of the building in its entirety or to substantially reduce its footprint within the property. Half of the space had a very tenant-specific layout which would have resulted in substantial build-out releasing costs. While the market was showing signs of improvement during negotiations with AT&T, there were many large blocks of space on the market, resulting in a competitive atmosphere for new leasing.

Strategy

ECR and the ownership arranged a series of strategic meetings with the building architect very early in the process of discussions with AT&T to understand the different options of spaces we could receive back and how much work would likely be required to re-tenant these various spaces. From these meetings, it was determined that the first floor space AT&T occupied would require complete remodeling to accommodate a new tenant in the marketplace; however, the second floor space was a very usable layout and was in excellent condition. Multi-tenant plans were also explored for the various lease spaces. ECR conducted thorough market research to determine the competitive landscape. From this, it was determined that the best plan for releasing would be to have a market option in the range of 20,000 to 30,000 RSF.

Results

Armed with detailed knowledge about the property and competitive landscape, ECR and the ownership worked together to negotiate terms for AT&T to renew within the entirety of the first floor and to deliver back the second floor with approximately four months remaining on the lease to work to re-lease the space. Further, ECRand The Kurt Simons Company negotiated with AT&T to leave its furniture in-place at no expense for the second floor to help find a tenant. Within months, ECR had sourced multiple tenant opportunities, and with The Kurt Simons Company negotiated aggressively to finalize terms with a national credit company to lease the entire second floor, including all furniture. Further, the lease was executed less than a month after the expiration of the AT&T lease with a quick commencement date thereafter. The negotiated terms provided the best solution for the ownership with limited initial investment, a high-quality tenant, short down-time, strong lease terms and a 100% leased Class A property for the long-term.