Hot Trend: Repositioning
As the trend towards building repositioning continues, value-add projects have become increasingly popular. Roger Heerema of Wright Heerema Architects (WHA) says that investors in both the downtown and suburban markets are looking to purchase buildings with recently upgraded amenities, or buildings with potential to reposition and sell. Amenity centers including everything from rooftop decks to fitness centers have become a key point of tenant attraction and retention as well as revenue generators. WHA recently completed a repositioning project at 440 S LaSalle that helped to create an entirely new tenant demographic for the building. Similarly, at One South Wacker, WHA was able to make the building competitive with its brand-new Class-A counterparts. Both of these projects have realized tremendous successes including increases in lease renewal, higher rent rates and improved marketability. For more information on our Bisnow partner, click here.