Improve Your Lease Up: Commercial & Residential 02/06/20
After what can be years of planning, permitting, and construction, developers want to ensure lease up goes smoothly so their investment can start to show a return. How quickly a leasing team fills the building is influenced by many factors such as amenities, location, and market competition. We have found one factor that has consistently allowed projects, commercial or residential, to lease up faster and command higher rents and it’s a top requested building perk: natural light and views.
In San Jose, California, just east of Silicon Valley the American Center II is comprised of two 6-story spec office buildings totaling 457,000 square feet. The project is now home to Hewlett Packard Enterprise Headquarters, the anchor tenant with 1,000 employees on site. The development team, Steelwave, USAA Real Estate and Teacher Retirement System of Texas, were able to sign the anchor tenant 4 times faster than competition within the market. At a market rent of $40, 11 months additional rent equates to $8 million.
The American Center II, headquarters for HPE.
The Lake Union Building, in Seattle Washington, was originally built in 1970 and is one of the only commercial properties directly on the waterfront. The 7 story, 69,000 square foot office building underwent a refresh that allowed the owner, Henbart LLC, to fill two chronically vacant floors with a $5 increase in asking rent. This increase added $8.2M in asset value to the building.
Just outside of Washington D.C., Exo Reston is situated in the middle of a packed submarket with 6 similar high-end projects completed in the past few years. While these new developments all offer the typical resort amenities, rents at Exo Reston are nearly 10% higher than the competition. The average rent for a 2 bedroom in this D.C. suburb is $2,646 while at Exo Reston a similar 2 bed is listed for $2,920.
Exo Reston, just outside D. C.
Scattered across the country in different markets, these projects have one thing in common that drives such an increase in value for the owners and development teams: View Dynamic Glass. Each of these unique buildings has installed this new technology with \positive impacts on the bottom line - not to mention tenant satisfaction.
At America Center II, View helped set the office building apart from other spec offices in the area that had similar high-end amenities. Dirk Mosis, Executive Managing Director at USAA Real Estate, discussed how View was key to the project: “View Dynamic Glass saves energy and operating expenses, affording building occupants an enhanced workplace environment with unobstructed views and access to natural daylight. We are excited to prove this concept.”
In Seattle, View was the central component of the façade modernization project at Lake Union that allowed an increase in asking rents and also increased tenant retention by solving hot and cold complaints. The dynamic glass also allowed for reclaiming stunning lake and city views as no blinds or shades are needed.
At Exo Reston, View is one of the key unit amenities responsible for the increased rents at the property. The technology, which the residents love, provides additional daylight and removes unwanted glare to maximize views. Whether residential or commercial, View Dynamic Glass is an addition proven to attract and retain tenants and command higher rents.
View’s vision is built around the belief that natural light is required to live a healthy and productive life, but the ordinary window is far from optimized to provide it. View’s smart glass windows let in natural light and views and enhance mental and physical well-being by significantly reducing headaches, eyestrain, and drowsiness. They also reduce glare and heat, improving the energy efficiency of buildings by up to 20 percent.View >>