Editor's Letter
5602 Baltimore National Pike: 3 Months In. Did we Crack the Code to Suburban Office?
Austin and I closed on our newest suburban office project in March of this year at 5602 Baltimore National Pike in Catonsville.
We are roughly three months into the project, and our early success and momentum have exceeded all expectations.
Here is a breakdown of what we are doing and why it is working:
- Real Estate 101: We bought the asset at the right price and under the right terms.
- Renovate Model Suites: We quickly renovated two model suites. This makes it much easier for prospective tenants to visualize and trust our promised renovations. Walking a tenant through an unrenovated, vacant space makes conversion difficult if they cannot see and experience a ready-to-go unit simultaneously.
- Establish a Tiered Pricing Model and Budget: We offer a premium build-out for $2 per square foot more than our standard option. Our total construction budget is allocated to cover a projected mix of 60% to 70% standard build-outs and 30% to 40% premium build-outs. This structure simplifies tenant negotiations. We can accommodate any design request up to our allocated budget for that unit. Anything in excess is paid for by the tenant or amortized into their monthly rent.
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Provide Floor Plans and Video Walkthroughs: Shortly after closing, our architecture team at NW2 Engineers created updated floor plans for every unit. These plans serve as an excellent marketing tool and ensure we price our suites accurately based on precise square footage. We also recorded video walkthroughs for each suite to send immediately to prospective tenants. Examples can be viewed here:
- Answer the Phone: Speed to lead is everything. When a new inquiry comes in, we contact them immediately. This standard is shockingly rare in the office leasing world, meaning we stand out simply by calling people back. We track all prospects in a database and follow up systematically.
- Simplify the Application and Leasing Process: We use a simple Google Form for applications. It is straightforward and effective. Additionally, I built a lease template from a legally sound document drafted by our attorney. Because I can customize a new lease in under 20 minutes, we do not need to wait on legal reviews for every single transaction. If closing a lease takes months and costs thousands in administrative fees, you lose the deal. Speed wins.
The 3-Month Results
Our process is already delivering clear results:
- 4 new leases signed, totaling 3,809 square feet of newly occupied space that was vacant at acquisition.
- 5 applications in progress, which will account for another 5,648 square feet of leased space upon signing.
If these five pending applications convert, we will have increased occupancy from 50% on closing day to 67.9% in just over three months.
5602 Baltimore National Pike in Catonsville
Project Overview
6809 Belair Rd: Haven Coworking’s 2nd Location is DONE
If you have been following our quarterly updates, you know we have frequently mentioned our mega-project at 6809 Belair Road. This quarter, I have the most exciting update yet: construction is officially complete.
We are thrilled to open this building as Haven Coworking’s second location. We are confident this newly revived space will once again become a pillar of the Overlea community.
A few weeks ago, Joe Ilardi, a reporter with the Baltimore Business Journal, met us on-site to cover the revitalization of the building. You can read the full article [HERE].
Take a Virtual Tour
I recently dipped my toes into content creation and put together a short, narrated video tour of the finished space. Click below to take a two-minute virtual tour of the building.
Link to the Instagram Reel: View the Video Tour Here
Stay tuned for details regarding our Grand Opening party coming later this summer!
Business Advice from the Front Lines
We are introducing a new quarterly section where I share the real-world challenges Austin and I are navigating, struggling with, or actively solving in our business. Best of all, these takeaways apply to any industry, not just real estate.
Is a Lack of Lead Generation the Root of Your Business Problems?
While Austin and I wear many hats daily, our primary responsibilities come down to three core roles:
- Generating and servicing residential and commercial sales leads as real estate agents.
- Generating and servicing event, meeting, and office leads for Haven Coworking.
- Generating and servicing residential and commercial lease leads to fill vacancies in our rental portfolio.
When we focus on these three priorities, our business succeeds. The only times our business challenges have felt truly insurmountable are when we neglected one of these areas and our lead flow stalled.
It is easy to generate a never-ending list of other administrative tasks that require our time and energy. However, nothing on that list moves the needle or impacts the bottom line as powerfully as consistent lead generation.
To keep these engines running, we rely on proven lead generation models. As proud members of Keller Williams, I have recently been binging the Millionaire Real Estate Agent Podcast hosted by Jason Abrams. On the show, Jason interviews top-producing agents who have mastered specific lead generation models to dominate their markets.
These strategies are highly adaptable to any business model. You can access the podcast and download a free one-page breakdown of each lead generation model below:
Go forth and conquer those leads!
Hot Takes
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How’s the real estate market?
We get asked that all the time. Right now, my answer is simple: the intersection of condition versus price matters more today than it has in years.
Across the board, expectations have shifted:
Renters want top-notch condition; the old "renter-grade" standard just doesn't cut it anymore.
Buyers want a move-in-ready home or a steep enough discount to make a fixer-upper worth the effort.
Businesses are looking for modern, turnkey commercial spaces. Unless you’re offering a massive discount, they don't want to deal with renovations or dated layouts.
So, how is the Maryland market? It’s actually excellent, if you’re honest about where your property sits on the price-to-condition spectrum compared to the competition and price accordingly.
— Will
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The economy is hurting more than we think. This week I spent a week at the beach on our annual Wildwood, NJ vacation, and it was different than past years. The lines were shorter, motel/hotel parking lots were emptier and restaurants were quieter. This is on the ground evidence to me that less people are able to take that summer vacation this year. While this could also mean less popularity for a single beach, in this case I take it as a possible harbinger of harder economic times coming.
That bodes well for us as we've positioned most of our assets as the affordable option, which becomes more popular in harder times.
— Austin
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