GM Properties has provided Property Management and Leasing services to global private real estate investment management Firm since 2021. The client had acquired a 41,000 sf multi-tenant industrial property in Brea, CA that had been under long-term ownership. The original tenants were on month-to-month leases while paying under-market rents without CAM charges.

GM Properties worked with new ownership to develop a repositioning strategy and stabilize the asset, which was underperforming the market. The team immediately initiated a lease renewal process that brought desirable tenants up to market rates at a 50 percent increase and allowed the leases of problematic tenants to expire, thus creating 40 percent vacancy. The team quickly took advantage of this decreased occupancy to bring in new tenants at market rate within six months. The team also added a CAM of $0.17 per sf, which previously had been paid by the landlord.

Pricing has since continually increased from its original rate of $1.30 per sf to $1.96 per sf to greatly improve returns. GM Properties also made planning recommendations that would transition the building to a commercial condo property, which would increase the owner’s potential rate of return by a significant margin should they choose to sell the property.