Full Lease-Up Repositions Owner-Occupied Industrial Building in Miramar Into Cash-Flowing Asset
Overview
- 8655 Production Ave, San Diego, CA 92121
- Industrial Building
- ±25,095 SF
- 85% warehouse / 15% office
- Landlord Representation
- 2 Direct Leases + 1 Renewal
For more information regarding this case study,
please contact:
Spencer Dok
Vice President
The Challenge
Our client occupied approximately 70% of the building for their business operations, while the remaining 30% was leased to a third-party tenant. After carefully analyzing financial scenarios with ownership, they determined the best long-term strategy was to relocate their business and lease out 100% of the building to maximize income in light of strong prevailing market lease rates. Executing this strategy required coordinated marketing and negotiations to backfill the entire building with quality tenants while mitigating financial pressure during the transition.
Our Approach
We launched a targeted marketing campaign designed to reach both national and local users. This effort generated significant interest, resulting in commitments from a Fortune 500 service-based company and a local distillery operator. During these negotiations, the landlord also chose to sell their operating business, which added complexity. Simultaneously, we secured a renewal with the existing tenant occupying 30% of the building, aligning their lease terms more closely with market.
The Outcome
We successfully completed two new direct leases and one renewal, bringing the building to 100% occupancy under improved economics. These transactions significantly enhanced the financial performance of the property, providing stable cash flow and allowing ownership to shift focus toward new projects.