We took over management of Corporate Center in March 2008. During the lease abstraction process we discovered that rent was A) below market B) expense stops were not being recaptured C)charged based on Usable Square Footage (USF) and not Rentable Square Footage. Rentable Square Footage (RSF) takes into account common areas and charges a load factor based on the percentage of the building that is comprised of common areas. RSF is commonly used in this marketplace for class A buildings. We had the building measured and plans drawn which allowed for a conversion to RSF based on an 18% load factor, giving the owners 18% more revenue.
To date we have completed four renewals, all at market rates incorporating the 18% load factor. This has added significant value to the property since it adds to the overall SF we charge rent on and increases the gross revenue of the property.
Further, we successfully implementing operating expense reimbursements and renegotiated service contracts to keep our expenses lower than the previous owners.