Case Study: Northwood Commons, retail and office project in Safety Harbor, Florida (CON’T)
5. Retail Signage and Exterior Lighting: NREV converted the outdated retail fascia signage from neon to brighter, eco-friendly LED signs. It also doubled the parking lot lighting levels, which were dangerously low, with a combination of extensive tree trimming and additional parking lot lights.
6. Retail Leasing Program: NREV focused first on retail leasing because: a) the retail market was far stronger than the office market; b) retail leases were producing twice the contribution to net operating income (NOI) per square foot than office leases; and c) the office buildings needed extensive repairs, improved signage and reconditioning of vacant suites to be leasable. Leases of important existing local retailers such as Ed’s Fine Wines, Sole n Heel, and national companies such as H&R Block and Oreck Vacuum were first renewed to restore confidence in the Project. NREV uses its in-house legal, marketing and development skills, to lease as effectively as any broker in Florida.
(i) NREV encouraged two quality retailers, Elizabeth’s Bakery and Café and Sabai Asian Bistro to purchase the stores of weak tenants and assume their leases by favorably amending and assigning the leases. Intensive legal and negotiating efforts were required for these two deals. At receivership inception, NREV leveraged existing fixturing to lease to an experienced veterinarian, Enterprise Animal Hospital, within one month of lease termination by the prior tenant—a lease which reversed the downward occupancy percentage, and started the climb to 100% retail occupancy.
(ii) Outreach to the local community by NREV produced a lease with the most experienced and successful specialty retailer on the intersection, Northwood Floral, a former tenant at the Project. A longstanding tenant at the Project convinced Northwood Floral to return to Northwood Commons. Such outreach also attracted Cuvee 103, a fine dining and wine Restaurant, highly rated by Yelp and Trip Advisor.
(iii) NREV has convinced exclusive tenant reps that its integrated in-house legal drafting, space planning and quick response times, make deals happen quickly. Consequently, six leases were either closed or renewed through exclusive tenant reps, including leases to two very strong national and regional retailers—Wild Birds Unlimited and BurgerMonger, a fast growing and highly rated new chain.
(iv) NREV believes that the leasing brochure for every vacant space should be first class and comprehensive, including as built space plans, so that it can be as effective in digital marketing as at the point of sale (lease).
7. Increased Center Identity and Signage: To increase public awareness of the Project, NREV negotiated a variance with the City of Safety Harbor, allowing a height increase of the Project’s main pylon sign on highly trafficked McMullen Booth Road. The visibility of the Project was further increased by converting all pylon lighting to LED and adding an internally illuminated address sign. The increase in height also enabled a 50% increase in the number of valuable tenant signs on McMullen Booth.
8. Increased Office Building Signage: NREV obtained City approval to place innovative tenant signs on the facade of the office building and restored the exterior directory, which had been abandoned and covered over.
9. Office Parking Lot Improvements: NREV cut and patched the office parking lot, reducing dangerous “trip and fall conditionsâ€, seal-coated and restriped the entire lot. New directional signs and a designated parking plan made parking more convenient for tenants and clients. These actions removed parking as a major obstacle to office leasing.
