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September 10, 2010  

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Serving America's #1 Market
Marketing goes out of the box ... and into the tube
Liana Grey
7/21/2010
 
Landlords getting creative in efforts to woo tenants in down market

By Liana Grey

During last decade’s economic boom, commercial buildings practically leased themselves. In today’s market, what it takes to attract tenants is a bit of pizzazz: exciting giveaways, free perks — or, in the case of Blue Hill Plaza, fifteen minutes of fame.

To fill a 10-15% vacancy at the Class A office building in Rockland County, New York, landlord Glorius Sun Robert Martin is launching a series of advertisements featuring "confession-box" testimonials from tenants, which include prominent corporations like Pfizer and Verizon.

"We set a booth up in the concourse area" said Tim Jones, managing director of Robert Martin, which partnered with Glorious Sun in 1996 to purchase the 1.1 million s/f complex just 25 miles from Manhattan. "We had a programmed interview in the booth, asking people for feedback on the building."

Responses — which have been overwhelmingly positive, citing extensive amenities like a 600,000 s/f concourse with a cafeteria, beauty salon, and service facilities — will be aired on local television stations with the aim of diversifying the tenant pool.

"Locally, there’s a perception that this building doesn’t have room for smaller tenants," said Jones. "We thought we’d let everyone know that we want them."

The idea for the campaign sprung not so much from tough economic conditions, but a marketing department looking to exercise its right brain. "We’re fairly active on marketing — we’re always for looking for new ideas," said Jones. "We do a lot of Internet advertising. We have a sign on the Palisades Parkway."

The same can be said for a celebrated rebranding campaign at the Empire State Building, which began in 2006 when the market was still going strong and ended last year. Efforts to remodel the landmark’s aging interior – including a renovation of the lobby and the creation of larger blocks of office space – attracted tenants like Cody, one of the world’s largest fragrance companies, and Skanska, a major construction firm, which leased 90,000 s/f and 25,000 s/f respectively.

"Generally, the best campaigns are those with shelf life," said Steve Eynon (pictured)  a senior vice president at CBRE and the Empire State Building’s director of leasing. The point of the campaign, he said, was not merely to fill space, but to reposition the building.

But with vacancies still high across the New York area, it doesn’t hurt to stand out. "In this type of market, there’s a lot of space," said Faith Hope Consolo, chairman of Prudential Douglas Elliman’s retail leasing and sales division. "We have to create a lot of excitement."

Two years ago, Consolo generated buzz for a 5,000 s/f multi-level retail space at 717 Madison Avenue with a Mini Cooper giveaway. The campaign’s slogan? "Give us your maxi and we will give you a Mini."

The gimmick, which culminated with a party at the space, attracted offers from so many high-end brands — Michael Kors, Calypso, and John Barbados among them — that Consolo and her partner Joe Aquino decided not to hand out a car after all. Kinaya, a clothing company from Mumbai, secured the lease and is slated to set up shop this fall.

"We ended up bringing the best tenant with the best offer," said Consolo.

Out-of-the-box marketing strategies have proven so effective, Consolo added, that formerly hands-off building owners are getting on board.

"There’s a myriad of techniques and tactics landlords are employing today," said Greg Barkan, a first vice president at CBRE’s Saddle Brook, New Jersey office. "It’s not different from other down markets."

In recent years, Barkan has encountered strategies ranging from direct advertising on taxicab television screens to the offer of free amenities.

By providing new furniture free of cost, the owner of Morris Corporate Center, a Class A, 525,000 s/f office complex in Parsippany, NJ, hopes to attract companies with limited funds for relocation, Barkan said.

The landlord of a 425,000 s/f office complex in the Meadowlands took a similar tack, winning over prospective tenants with perks like a state-of-the-art video conferencing center, which can be accessed by leaseholders at CBRE-represented buildings across the country, and a shuttle that runs to and from the train station and local shopping center.

"The fact that it’s all free is related to the economic downturn," Barkan said. "Otherwise they could charge."

 
   

 
 
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