The take-over of property management and construction management on a privately owned, 375,000 S.F. portfolio of multi-tenant industrial buildings in Phoenix, Arizona was a study in the importance of paying attention to the fundamentals.

This portfolio was purchased in February 2008, and had a 31% vacancy rate. The physical plant of the building and the marketing of the portfolio had been significantly neglected by the previous owner. NRES helped author the revitalization plan for the properties during the due diligence period of the purchase transaction. At the close of escrow, NRES took over the reins and executed the following key actions:

• Gathered competitive bids for critical property services, including landscaping, property cleaning, and security.
• Based on a detailed general contractor's bid, coordinated a six month deferred maintenance schedule with existing tenants at all 11 properties, including paving, security fencing, exterior repainting, roofing repairs, and replacement, and HVAC repairs and replacement.
• Hired a local team of dedicated industrial brokers and collaborated on marketing materials and strategic pricing for asking rents and tenant improvement allowances.
• Negotiated new lease terms with several tenants who were operating under month to month leases and introduced a modern, WinAIR lease form.
• Cleaned and refurbished several vacant spaces bringing them to lease-ready condition.
• Signed leases with 10 new tenants in the first 9 months of ownership.