The Issue

A Class A Midtown Manhattan office building had been plagued with consistently underperforming rental rates, hold, and vacancy rates while concurrently experiencing operating and construction inefficiencies. SCRE was hired to complete a comprehensive operational and leasing audit.

The Process

The SCRE team conducted a complete review of all operations, contracts, staffing, planned capital improvements, project management, construction, marketing & leasing reporting.
Within 60 days, SCRE submitted a detailed report highlighting problem areas and recommendations. This report inspired Ownership to initiate a specific long term plan that would reposition the property with a complete new team under a more competitive fee structure.
SCRE professionals assisted with the following:

• New independent Project Management team
  
• Phasing out of the exiting Leasing and Management team
  
• Hiring of a new Leasing and Management team
  

SCRE created e detailed RFP for each of the above, written and oral presentations were provided and overseen by SCRE which included an unbiased grading system. SCRE toured other managed properties and submitted observations. Fees for all services to be provided were negotiated in a competitive environment.

The Solution

All pending capital improvements were reinitiated with a savings over initial bids in excess of 20% ($1MM) with an on schedule completion. A new Leasing and Managing Agent was hired with a concise reporting structure. The property was re-introduced to the market place with greater building awareness and with a more competitive leasing package.
SCRE continues to advise the Owner on virtually all matters.