Situation
In response to a global pandemic, economic uncertainty, and the changing landscape, many commercial real estate markets have found an even longer sales cycle is occurring. Remote and Hybrid work has created challenges for many ownership and brokerage groups in their efforts to lease space and combat vacancies. This trend has also affected the Los Angeles market, which poses a challenge for Coretrust Capital Partners. Coretrust focuses on reinventing large assets to meet the needs of today’s tenants.
Currently, LA-based headlines highlight assets selling at a discount, retail or office spaces are being converted to residential, and companies are still working from home. However, Coretrust wanted to evaluate leasing strategies to find innovative options to expand their reach to the companies looking for space in the market.
Solution
Despite having excellent knowledge of the LA market and key leasing players, Coretrust realized the need for a cost-effective strategy that would enable them to find, advance, and close more deals.
In December 2021, Coretrust made RealtyAds a foundational component of its leasing strategy. RealtyAds is CRE’s leading expert in leasing enablement software to find, advance, and close more deals. To receive the full benefits of RealtyAds services, Coretrust invested in a digital presence for their entire portfolio, including their assets in LA. Coretrust’s leaders also educated every property marketer, broker, and asset manager to receive the full benefits of leveraging this essential technology.
Coretrust realized typical leasing strategies weren’t going to cut it. Instead, they needed a proactive approach to reach the limited end users and tenant reps active in the market. As experienced by Coretrust, when RealtyAds is at the foundation of the leasing strategy, you can reach 80% more top tenant reps in the market and begin reaching key decision-makers.
Result
By Q1 of 2023, RealtyAds enabled Coretrust to execute at least 5 office leases across 3 assets. Coretrust’s brokers and marketing team leveraged the platform to get the best results for their leasing efforts. They could transact successfully by using digitally optimized content, rotating messaging, targeting specific audiences, and integrating with RealtyAds AI. Two of the assets that saw improvements in leasing velocity were Pasarroyo and FourFortyFour South Flower in LA.
For 9 straight months, Pasarroyo’s digital presence reached C-suite executives at over 100 companies every single month. These companies were either identified by Coretrust’s 3rd party leasing team as a priority or based on online behavioral patterns indicating they were interested in office space in the LA market. Due to RITA and the data accuracy level Coretrust could provide on their target audience, Passarroyo’s digital presence outperformed the projected company reach by over 200%.
FourFortyFour South Flower successfully executed leases with three leading national organizations. While the decision-makers at these firms were making their buying decisions, they were also interacting with the digital presence deployed by Coretrust: Dykema Dossett, Grant Thornton LLP, and Esquire Depositions. Dykema Dossett, a leading national law firm, leased the entire 21,750-square-foot 22nd floor, and Grant Thornton LLP, the 7th largest accounting network, leased the entire 11th floor. They also completed a lease with Esquire Depositions, a national provider of court reporting, for a suite that fit all their office needs. These transactions lead to lease agreements that consist of more than a 10-year term.
Takeaway
As the economy and circumstances change, each commercial real estate sector can fluctuate. This further solidifies the need for innovative leasing solutions that reach critical audiences in any economic state. By engaging RealtyAds, CRE leasing and marketing teams are equipped with the technology to compete in challenging markets.
RealtyAds enables CRE teams to transact with greater success by finding, advancing, and closing more deals with essential software. When RealtyAds is the foundational component of your strategy, you get ahead of the competition that is still attempting to lease space in traditional ways that produce little to no ROI.
The world of commercial real estate has changed, and strategies need to adapt. When your leasing, marketing, and management are educated and leverage RealtyAds, you can gain exposure and reach critical audiences no matter the condition of your market.
