Strategic Property Repositioning Results in 50% Increase in Rents for Brea, CA Investor

GM Properties has provided Property Management and Leasing services to a 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 Property Management team immediately initiated a lease renewal process that brought desirable tenants up to market rates at a 50% increase and allowed the leases of problematic tenants to expire, thus creating a 40% vacancy. The Leasing team quickly took advantage of this decreased occupancy to bring in new tenants at market rate within six months. A CAM was also implemented, which previously had been paid by the landlord.

Pricing has since continually increased from its original rate of $1.30 to $1.75+ psf CAM to greatly improve returns.

_______________________