Reducing Vacancy in a Difficult Location

Our integrated, tailor-made leasing strategy has led to an increase in occupancy rates in a challenging building.

Property Name: North City Tower
Location:Bucharest, Romania
Property Type:Office
Service Types:Property Management, Technical & Facilities Management, Leasing, Construction & Project Management
Size:9,692 m²
Client:ING Lease
Main Tenants:Puma, Strabag, Tymbark, Fokker Engineering

Challenge

A non-performing loan led to the bank taking over the asset at a time when all the major tenants had departed or were about to leave. Besides numerous technical issues, the building was facing an occupancy rate of only 18%.

Solution

AIG and White Star Partners implemented a carefully planned marketing strategy with a limited budget, utilizing flexible commercial terms and integrating the building improvements. Several main concerns, including the location, its lack of public transportation and the building’s lack of amenities were overcome, using AIG and White Star Partners’ marketing connections to change the perception among potential tenants. The building’s competitive advantages were identified and emphasized to prospective tenants.

Results

The building’s image in the market was significantly boosted. Besides the tenants which were maintained, and even expanded, four new international tenants signed long-term leases. Thus, within 18 months, the building’s occupancy rate tripled to 54%.