Radam Lane Industrial Park

Clients Goal

• During the 2nd half of 2022, 3 buildings (50% of the property) were vacating and the client needed to backfill all 3 buildings quickly with good credit tenants.

Challenge

• The 1st building had a tenant nearly default and it put the landlord at risk. The 2nd and 3rd buildings were being vacated by a long-term tenant who had worn out the buildings’ interior and exterior.

Strategy

• For the 1st building, ECR recommended a buy-out with the existing tenant while also finding a replacement tenant. ECR’s team completed a virtual tour of the space and reached out to active brokers in the market by phone and email.

• For the other 2 buildings, ECR and the client enforced restoration and clean-up language in the tenant’s lease to ensure the tenant would vacate the buildings in an acceptable manner. In addition, ECR worked with the client to complete spec improvements to the building to be in a position to release them quickly in the market.

Results

• ECR’s leasing team successfully negotiated a buy-out with the tenant in the 1st building and backfilled the space with a growing pickleball company, Recess, who relocated their HQ to Austin. In addition, the lease rate was higher than what was in place with the prior tenant.

• For the other 2 buildings, ECR’s leasing team pre-leased one of the two buildings at a rate 16% higher than the prior tenant to a great credit tenant. The other building was leased very quickly to a great tenant at a rate about 25% higher than the prior tenant.