CASE STUDIES
NOTABLE PROJECTS
LANDLORD REPRESENTATION ASSIGNMENTS
HILLSBORO CENTER
600-700 W Hillsboro Blvd, Deerfield Beach, FL
The Great Recession precipitated peak historical office vacancies in Broward County. As a result, Parkway REIT engaged the local expertise of Commercial Florida in 2009 for their agency leasing services at Hillsboro Center, a 216,114 sf office portfolio. Commercial Florida implemented an aggressive marketing plan that accelerated leasing activity, escalated occupancy rates, and continued to deliver exceptional results for the premier Deerfield Beach office portfolio.
OPPORTUNITY/ CHALLENGE
Commercial Florida successfully executed on an aggressive lease-up strategy to correct the asset’s underperformance, despite the market conditions. Hillsboro Center’s transition to stabilization compelled Parkway to sell the portfolio in 2015, while including Commercial Florida on the disposition team for their local market leasing expertise.
SOLUTION
Commercial Florida Realty Services maintained a consistent, below-market vacancy rate throughout the hold period by negotiating numerous new leases, expansions of current tenants, and strategic relocations to optimize the portfolio’s value.
Hosted SFOBA luncheon to generate exposure for remaining availability at Hillsboro Center.
Grew rental rates by 16% and 30% in the Class A and B properties, respectively.
TENANT REPRESENTATION ASSIGNMENTS
JP MORGAN CHASE, SOUTHLAKE PLAZA
1350-1400 Newport Center Drive,
Deerfield Beach, Florida
Commercial Florida Realty Services has maintained a long term strategic relationship with JP Morgan Chase and its subsidiaries in providing transaction services through South Florida for over 15 years.
In late 2006, JP Morgan Chase requested that Commercial Florida negotiate an early renewal and expansion of its premises for its mortgage operations center in Deerfield Beach at Southlake Plaza. At the time, the original Premises of 42,500 sf were expanded to 48,300 sf. The renegotiations resulted in an extension of the lease term and an overall occupancy cost reduction to JP Morgan Chase. It also provided a needed renovation and leasehold improvement allowance and the attention to deferred maintenance, a shifting of air conditioning replacement costs to the Landlord, and other property condition issues. The new Lease also provided rights for their on-going space expansion needs within the complex.
OPPORTUNITY/ CHALLENGE
The scope of JP Morgan Chase’s operations changed at the property requiring a significant investment in back up systems with major generator capacity and associated infrastructure.
A complete analysis of cost and logistics of relocation verses renewal and renovation in the existing Premises was undertaken by Commercial Florida.
The space needs necessitated a downsize of the Premises.
An expressed preference for a minimal disruption to their operations
SOLUTION
Commercial Florida studied the existing space, completed a full needs assessment in collaboration with the in house JP Morgan Chase facilities and real estate personnel, and, after consideration of other viable relocation alternatives, determined that the best solution was to downsize in the existing building from the 2nd floor to the 1st floor, and to surrender a portion of the premises to the Landlord in exchange for an early renewal and rental cost reduction. Commercial Florida then negotiated a 12 year lease for 40,000 sf which included a substantial cash allowance towards renovations/tenant improvements and relocation costs, a retroactive adjustment in base rent costs, and caps on future increases in base rent and operating expense costs, and increased parking rights.
VALUE ADDED BY COMMERCIAL REALTY FLORIDA SERVICES
JP Morgan Chase benefited from an immediate reduction in occupancy costs and received a sufficient cash allowance to accomplish its goals and objectives.
The transaction assisted in improving functionality, efficiency, and internal operations.
There was minimal disruption to the operations conducted at the facility.
ADDITIONAL JP MORGAN CHASE TRANSACTIONS IN SOUTH FLORIDA
In 2013, Commercial Florida was requested by JP Morgan Chase to negotiate a short term renewal of its 23,000 sf Lease at Sawgrass Lakes Center, in Sunrise, Florida. The facility was shared by its mortgage counseling group as well as bank branch operations and training. In a further transaction, Commercial Florida represented JP Morgan Chase Securities in the relocation of its offices in Palm Beach Gardens, Florida, relocating from Golden Bear Plaza to newly configured offices at 3801 PGA Boulevard for 4,500 sf. As well several JP Morgan Chase branch and surplus office disposition in Palm Beach County.