405 East Joppa was a struggling, underutilized 30,000 SF office building in Towson when Wallace H. Campbell & Co. took over management. When it comes to real estate, there is nothing more important than making sure that your properties are well-maintained and managed. That’s why turning around this under-managed office building was a challenge that required a comprehensive approach.
At the outset, the building was experiencing high vacancy rates, low rent rolls, and a general lack of care that was deterring potential tenants from considering the space. However, with a combination of better property management, preventive maintenance, unique revenue streams, and improved tenant relations, we were able to turn the property around and make it a profitable asset for its owners.
First and foremost, we recognized that the building’s underperformance was due in part to the lack of proper maintenance. We implemented a rigorous preventive maintenance schedule that addressed all of the major systems, from elevators to plumbing, electrical, and HVAC. By keeping up with routine maintenance tasks, we were able to prevent larger and more costly repairs down the road, which in turn allowed us to allocate more funds towards tenant improvements.
Additionally, we made significant improvements to the building’s leasing management process. We identified the target market for the building, established a competitive rental rate, and implemented a targeted leasing campaign that included digital and print advertising, email marketing, and direct outreach to potential tenants. We also streamlined the leasing process, making it easier for tenants to view available spaces, and schedule tours.
Another key component of the turnaround strategy was to identify unique revenue streams that would supplement the building’s rental income. We explored a variety of options, including leasing out unused rooftop space to telecommunications companies for cell towers, offering parking space to nearby businesses, and even renting out underutilized storage space to local residents. By diversifying the building’s income sources, we were able to mitigate the financial risks associated with relying solely on rental income.
Finally, we focused heavily on improving tenant relations by fostering a culture of open communication and transparency. We made ourselves readily available to tenants, addressing their concerns and needs in a timely and professional manner. We also implemented regular tenant appreciation events, including holiday parties, and other special events. By creating a sense of community within the building, we were able to reduce tenant turnover and keep occupancy rates high.
The result of all of these efforts is a now cash-flowing real estate asset that is fully leased, well-maintained, and full of happy tenants. The building is now a source of pride for its owners, and we continue to work closely with them to ensure that the property remains a profitable asset for years to come. In fact Wallace H. Campbell & Co. made the building their corporate headquarters.