Lavaca Plaza

Client’s Goal

• To secure the best long-term solution working with WP Engine, the largest tenant, and keep them within the property.

Challenge

• This fast-growing technology company continues to hire and grow rapidly, creating challenges for accommodating its real estate requirements in the building, which is a total of 130,000 RSF.
• ECR brokers communicate regularly with WP Engine, and a recent internal study showed that their real estate requirements would likely exceed 100,000 RSF in the years ahead.
• WP Engine passed on expansion opportunities in the past and was reaching a point of needing growth space within a 100% occupied building.

Strategy

• Unico Properties (Unico), the ownership of Lavaca Plaza, and ECR worked tirelessly to communicate regularly and proactively about expansion solutions for WP Engine.
• This included proactive meetings, proposals, and test-fits that showed potential expansion and remodel solutions. Unico and ECR presented potential expansion solutions well in advance.

Results

• To protect the building, the leases for WP Engine were staggered at different expirations to create leverage and avoid a situation in which the building would receive back all spaces at once.
• This structure, along with Unico and ECR keeping regular communication with WP Engine, created an environment for the groups to work together rather than seeking outside solutions.
• Solutions were finalized to enter into long-term lease agreements with WP Engine, which offer manageable expansion opportunities from the ownership’s side.