Obsolescence Equals Opportunity_final (002)

CASE STUDIES

THE 1980s, 3-BUILDING FULL REPOSITIONING PLAY Lincoln Centre, Dallas, Texas Challenge: Comprised of three 1980s era buildings and encompassing 1.7 million sf, Lincoln Centre had never undergone a meaningful renovation since initial completion. Renovation investment: $45 million Solution: Owned by Nuveen Real Estate (TIAA-CREF) and managed by Cushman & Wakefield since 2006, the ownership committed to spending $45 million on renovations to fully reposition the property throughout the market in February 2022. Renovations included new lobbies in all three buildings, a food hall with six stations and full bar, upgraded fitness center that more than doubled in size to 15,000 sf, upgraded conference facilities, two coffee bars, grab-n-go markets, a new park with outdoor grill station, a patio with firepit overlooking park, a new grand entrance to the project, an interior-exterior wayfinding upgrade and a new lactation suite. Results: Creativity and the ability to tap into the market’s ongoing flight to quality emerged as key themes throughout the project’s success. Amenitization was key to the property’s leasing efforts, and features such as the multiple lounge areas, conferencing and lactation suites were well received by tenants. Focus of the project was also on activating the sense of place and creating community: rather than planning the customary once or twice annual tenant appreciation events with typical food or ice-cream social elements, the team focused on more targeted events that occupants would attend out of interest, rather than just for a free meal. The project also featured several ESG thematic tie-ins including receiving a Fitwel certification and several other creative elements. Honey harvested from the project’s beehive is used in signature beverages in the food hall as well as given to tenants as gifts; the herb garden also provides fresh herbs to the food hall. This new, holistic focus on space and experience led to the extension of a 312,000 sf anchor tenant to 2035 as well as measurable increase in achievable rents. For example, prior to renovations, the property was executing leases at $27/sf gross (plus electric), with more recent leases now executing between $13.50/sf - $34/sf NNN.

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