My last post was about diminishing inventory. This post is about a specific property that used to be a part of that inventory.
I blogged a long while ago (two years ago!!) about 3474 Empresa Drive, which was purchased by a client of mine. It was a vacant auto-body shop but we both saw potential in a redevelopment. He completely remodeled the building and the site and added square footage. We found an anchor tenant to occupy about 1/2 of the building and they moved in one year ago, in January of 2012.
Then we focused on the remainder of the building. There was a fair amount of activity but by summer of 2012 there was only one additional tenant in place and still about 6,000 sq. ft. of vacancy. Then, in September 2012 we had a flurry of activity and the remainder of the spaces were leased by three separate tenants. All tenants in this building were beneficiaries of reasonable rent and tenant improvements specific to their business, all in a sparkling new development. I feel that the building owner and the tenants in a sense all benefited from the economic downturn. The owner made a good buy on the real estate and was able to pass that savings on to his tenants in the form of a reasonable rent and a quality buildout.
Now 3474 Empresa is leased. I am glad we leased it but I am sorry to see the product go, because I really like that building. Meanwhile, the market continues to improve. The days of the distressed sale seem to be over.