Distribution Warehouse Park Lease-Up

An experienced landlord with a 900,000sf portfolio of warehouse space in the Houston market acquired a new value-add project in Conroe, TX in the fall of 2019. The owner immediately listed it with a well-known top 5 global brokerage firm. After a year of no activity and 40% vacancy, Rifle Real Estate Company took over the leasing of the project. Our managing partner, Nick Terry, offered some key insights on speculative construction that would help reposition the project. Rifle also kicked off a rebranded marketing campaign that began with beautiful marketing assets, professional photographs, and even drone video footage. From there, Rifled managed a proprietary digital marketing campaign that brought the project the attention of corporate distribution space occupiers and their brokers.

This activity gave the project the needed boost and within a month, the project’s 30,000sf vacant space was being toured, on average once, every three weeks. During this time, Rifle also began negotiating with the largest tenant in the project who was taking advantage of their lease expiring during the midst of the COVID-19 pandemic.

Rifle successfully negotiated a five year renewal for the largest existing tenant (35,000sf) , and ultimately procured a global manufacturing company to relocate to the 30,000sf vacancy for a ten year term.

Objective Outcomes

• Long-term lead tenant secured to fully lease project
• Multi-tenant project value increased by adding in annual base rent increases, longer term leases, and international credit rent roll.
• Owner benefited from diverse tenant business mix to decrease risk