Trident Corporation was appointed by NAB/ Ferrier Hodgson to analyse 45 Commercial Road, a 4,000m² office building that was constructed in 2007 and was still sitting vacant in 2009. The property had been through two unsuccessful leasing campaigns and two unsuccessful sale campaigns and was in the hands of a receiver and manager.
In a very soft leasing market, the receiver was faced with a decision of completing a lease that was at HOA stage over one and half floors for 5 years to a major builder at a rent of $430/m² and then leasing the balance of the premises out before an eventual sale. However, with a history of failed campaigns the receiver did not have confidence that the property was being positioned and marketed in a way to optimise value.
Trident Corporation was briefed to complete a diagnostic assessment of the property and the marketing campaigns to date as well as to make recommendations as to the completion of the HOA. After completing a detailed study, Trident recommended not to proceed with the HOA as the property was (at the time) the only 5 Star Green Star design property in the inner north market that could offer above 3,000m² of contiguous space. Rather than pitching the premises for lease at a price point that was competitive for the 1,000m² market, we suggested to increase the rent to $490/m² and exclusively to larger tenants. A marketing campaign was designed around that theme and then Trident Corporation, as lease coordinator, drove the marketing campaign and actively encouraged participation from the broader agency community as well as directly canvassed tenants.
Within four months, Trident had negotiated a new lease with NYSE company Bechtel for 5 years over the entire premises at a rental of $495/m², adding around $4M in value uplift then originally thought with the path the owner and receiver were heading down.