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GlobeSt.com EXCLUSIVE: New Space, Old Rates Push Lease-Up Strategy

GARLAND, TX-Foley's has its Red Apple sale and Kmart has its Blue Light special. It's not desperate, but realistic, says a broker who's offering second-generation rates to get cash flow in hard times on 382,000 sf of industrial shell space that delivered in April.

By Connie Gore | Updated on September 14, 2003

GARLAND, TX-A metro Dallas building owner has come to market with a plan to fill 382,000 sf of industrial shell space with short-term leases at second-generation rates to match the competition in a submarket with a 16.9% vacancy. Two deals, totaling 40,950 sf, are closed and 147,000 sf in four leases are pending.

The hope is the tenants will stay when it’s time to renew. More importantly, a project that delivered in April will be generating some cash flow, says David Pearson, marketing associate for the Holt Cos., the leasing agent for developer, Myers & Crow Co. Ltd., and owner, TA Associates.

“I wouldn’t say it’s desperate,” Pearson tells GlobeSt.com about the strategy to fill space at Miller Road Business Center, “but I’d say it’s realistic. We need to get occupancy this year. … We’re taking a look at any deals.” He confides the break-even point is 50% occupancy, doable by year’s end. And, he insists the bargain-basement price tags will stay in place as a lease-up strategy through 2004.

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