Spirit of Texas Bank Tomball branch | marketing anaLYsis

For More Information Regarding This Analysis, Please Contact Kimberly DeVos | (c) 281.723.9599 | kdevos@cypressbrook.com

current building information

1100 W. Main St., Tomball Texas 77375

Current Building Availability & Marketed Rates

Suite 108 (First Floor) | $18.50NNN ($7.75) | Total Lease Rate: $26.25sf

Rentable SF: 693sf | (Usable: 630sf) | Add-on Factor: 10%

  • Yearly Est. Rent Income: $12,820.50
  • Yearly Est. NNN Income: $5,370.75
  • Yearly Est. Total Income: $18,191.25

Suite 200 (Second Floor) | $18.50NNN ($7.75) | Total Lease Rate: $26.25

Rentable SF: up to 6,296sf | Add-on Factor: TBD with configuration and tenant base

  • Yearly Est. Rent Income: $116,476.00
  • Yearly Est. NNN Income: $48,794.00
  • Yearly Est. Total Income: $165,270.00

Leasing Issues

  • Building open since October 2016. As of February 2017 no new leasing in place and little activity.
  • Marketing Analysis and new Marketing Strategies need to be implemented.

MARKET Analysis

Tomball Area Office Market

Zip Codes 77373 & 77377

Vacancy:

Vacancy has continued to rise since 2014. Lack-luster economy and slump in the Oil & Gas industry are the main causes of the increase.

Absorption | Deliveries | Vacancy Report

Forecasting for 2017-2019, vacancy rate is expected to stabilize and slowly decrease. However, they are forecasting that mid-2018 through 2019 will be better than 2017.

Leasing:

Leasing in Tomball Area - Office has been almost non-existent in 2015-2016. Last year was down 40% (approx) from 2015.

Leasing Activity 2012-2016

Forecasting for 2017-2019, leasing is expected to increase and not decline. However, they are forecasting that mid-2018 through 2019 will be better than 2017.

Rents:

Rents are scattered throughout the area. With demand being extremely low, properties are sitting vacant on an average 10+ months before being taken down. Spirit of Texas-Tomball is currently listed at $18.50NNN ($7.75).

Average and Range Per Asking Rent Rate

Forecasting for 2017-2019. As the market slowly turns and the Oil & Gas Industry improves, so will the leasing activity. SOTB is on the high end of the rental rates, but within range of what the market is seeing. With so much vacancy in Tomball, it will be imperative to set this property apart from the others through marketing and incentives. Otherwise, it will continue to be vacant.

proposed new marketing strategy

1100 W. Main St., Tomball Texas 77375

What do we do now?

Proposed Changes to Marketing:

To get this property leased out, and set it apart from the multitude of the available properties in Tomball, I propose the following:

  • Signage! If I can put a "For Lease" sign at the building, it would help immensely. Having a lease sign up is a huge marketing asset, and I receive an enormous amount of calls just off of the sign.
  • Offer free rent (one month for three years | three months for five years)
  • Lower the rate to an obscure number that implies it's a good deal (i.e. $18.32 NNN). The numbers "3" and "8" are considered to be the most prosperous and lucky numbers in some cultures.
  • Take the NNN number off the flyer to give the feeling that the rate is lower side, rather than the higher side. Discuss the NNN charges after they've looked at it and fallen in love with it.
  • With the rate change, advertise that the rate has been reduced to imply people need to act now.
  • Highlight that the Tenant Improvements will be paid for by the Landlord. (i.e. 100% standard buildout included!) The statement is broad enough that if the buildout gets too high, you can have them pay for some of it.
  • If you have a security guard at this building, I would state that on the flyer. It just adds to the amenities that will set you apart.
  • We need to push and highlight all other amenities to deflect from the rental rate: after-hours keypad access, no charge for after-hour electricity or AC usage, excellent location in downtown Tomball, 1st generation space, etc.
  • Do you want to have reserved parking available for tenants?

After the above is done, I would propose the following:

  • Get a lease sign up! If the bank and/or the City of Tomball will allow. Previously, the bank did not want a sign up.
  • Turn this web page into a marketing page just for this bank building that will have a link to the flyer, pictures, list of amenities, etc., for prospects to quickly view online.
  • Send a physical 9x6 nice postcard to all businesses who would use office space in Tomball, N. Houston, Spring, Kingwood, and Cypress area who would be a candidate for Tomball.
  • Sit down with Tomball Economic Development Team with the new information and see if they can help. Give them physical postcards, flyers, and digital version to hand out.
  • Post and Repost to Social Media, along with Email Blasts through Xceligent and our proprietary database.
  • If possible, have Hope distribute or email the flyer to clients and shareholders that could have an impact on getting the flyer in front of good prospects.

There is no cost to the bank for the lease sign, postcards, etc. All of those costs are absorbed by Cypressbrook as part of our diligent marketing.

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Created By
Kimberly DeVos
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