Integrity Medical Building | Pittsburgh, PA

NAS produced quick, effective results in less than 90 days. Commitments were secured from both major tenants at top-of-the-market rates while minimizing expenses for tenant space improvements.

The 37,664 square foot, two and one half story, Integrity Medical Building is a stabilized asset with a diverse mix of tenants.  The medical practices strategically complement each other, producing a very strong economic synergism for the physicians located on the premises.  The major challenges that faced the property was its location atop a hill with limited visibility and inadequate signing as well as instability due to a considerable amount of turnover with the property management and leasing.

Immediately upon assuming asset management responsibility, the NAS team conducted a thorough property and market analysis identifying factors impacting property performance including:

• The property’s location atop a hill along with signing restrictions that resulted in poor visibility and lessening market awareness
• The property had a poor image in the local submarket due to perceptions of financial issues that diminished the property’s leasing efforts
• Frequent turnover of property management and leasing teams had resulted in inefficient operations and compromised the integrity of the leasing effort
• A lack of organized procedures and inadequate structure for building ownership consensus created an ineffective leasing approval process
• Two of the largest medical tenants, comprising 58% of the property’s occupancy were in discussions to relocate to other properties in the market when their leases expired within the next year

The NAS team took immediate, effective action by:

• Forming an ownership sub-committee for input regarding the many challenges the property faced.
• Performing a thorough review of ownership input and interviewing current management and leasing teams as well as conducting interviews with other qualified firms
• Conducting a cost benefit analysis to determine the importance of retaining the property’s two largest tenants and effectively communicating the results to ownership
• Making recommendations to ownership that included new leasing and management teams whose skills and experience were better suited to meet the property’s specific challenges
• Identifying the importance of providing the necessary tools that management and leasing would need to maximize their cost effective performance
• Meeting with key tenants to reinforce ownership’s commitment to providing a successful business environment

RESULTS

As a result of strong leadership and effective, transparent communication with property ownership NAS produced quick, effective results in less than 90 days.  Ownership approved recommendations for new management and leasing teams.  Commitments were secured from both major tenants at top-of-the-market rates while minimizing expenses for tenant space improvements.  The property’s daily business potential and future leasing efforts were maximized as NAS worked with property management and ownership to secure a variance for a new backlit sign that will be installed in the first quarter of 2011, greatly increasing visibility and heightening market awareness.