Capital Management Program Boosts Leasing to 95%

October 8, 2019

GlobeSt.com

By Lisa Brown

The strong leasing momentum is a direct result of the comprehensive capital improvement program Accesso completed at 2626 Cole, an important catalyst that has brought total occupancy to 95%.

DALLAS—Accesso has increased occupancy by 35% at 2626 Cole, a 121,000-square-foot boutique office property in the Uptown/Turtle Creek submarket. This strong leasing momentum is a direct result of the comprehensive capital improvement program Accesso completed at the property, an important catalyst that has brought total occupancy to 95%.

“The capital improvements and programs we have implemented at 2626 Cole have positioned us to benefit from Dallas’ thriving economy and robust demand for class-A office space,” said Moises Benzaquen, founding and managing partner of finance for Accesso. “This leasing milestone proves that office tenants are seeking the value-add amenities and modern qualities offered by this and other buildings in Accesso’s portfolio, and it dovetails with our nationwide strategy to bring to market sustainable energy-efficient properties that fulfill the expectations of today’s tenants.”

Accesso acquired 2626 Cole in 2014 and began its capital improvement program the following year to raise the building’s profile and attract new tenants. The program involved refreshing the lobby, exterior, common areas, restrooms and elevators, and adding energy-efficient HVAC systems. It also included adding spec suites throughout the building to create turnkey solutions and greater flexibility for prospective tenants.

“The leasing catalyst was the recent renovation that the company completed at 2626 Cole, which significantly modernized the property,” Abbey Rowsey, director of asset management and special projects with Accesso, tells GlobeSt.com. “The company overhauled the lobby while adding amenities that today’s tenants covet, such as flexible work space, communal conference lounges, energy-efficient HVAC systems and an employee lounge area.”

As several natural lease expirations occurred, lowering the property’s occupancy to 60% by fourth quarter 2018, these improvements helped the company quickly bring occupancy back to 95% by mid-2019. WorkSuites (formerly Meridian Business Centers), a Texas-based provider of flexible workspace, signed a new lease for 26,200 square feet earlier this year and is now the property’s largest tenant.

“2626 Cole is appealing to office tenants in Uptown Dallas for its prime location, close proximity to dining, hospitality and retail options, and up-to-date facilities,” said Rowsey. “We’re strong believers in thoughtfully implementing capital improvements from street to suite to bring our properties up to the standards of modern tenants–it’s much more than just layering on a fresh coat of paint. This has allowed us to improve the average rental rate by approximately $14 per square foot on a gross basis at the property and enabled us to better meet tenant expectations.”

As part of the renovation, the company implemented the Accesso Club, which is an exclusive amenities program available to all tenants of any Accesso property. It includes access to an on-site fitness center, tenant lounges, a communal conference room, designated co-working spaces, concierge services, self-care and personal development classes, and offers on discounted tickets to local and national events.

“The Accesso Club allows any member to experience these same amenities at other Accesso properties around the country,” Rowsey tells GlobeSt.com. “In other words, say an employee of a tenant at 2626 Cole is traveling to Chicago. This person can access the Accesso Club at any of the company’s properties in Chicago to work out, host a meeting or work without having to go to a coffee shop. Tenants love the luxury of having space and a work-out facility available to them in their travels. In a time where amenities are in high demand by tenants, especially in markets with optionality, the Accesso Club ensures the company’s properties stand out. Accesso understands that most people spend more time at the office than they do at home during the week so the Accesso Club is really about wellness and convenience.”

Accesso Club was created to support the personal well-being of its clients, and bring added benefits and special offers. Membership at Accesso Club allows tenants and employees the opportunity to enjoy unique work perks at all of Accesso’s properties nationwide, whether those members are at home or on the road.

Some of the perks members can access when becoming an Accesso Club member: seminars and classes including wellness and professional development training, exclusive discounts and tailored experiences, discounted tickets to local and national events, and fitness centers, conference rooms and co-working spaces, GlobeSt.com, learns.

Accesso is an investment manager and operator of multi-tenant office buildings in non-gateway US markets.