A Case Study in Property Leasing: Hillcrest Crossing

After assuming management and leasing duties at North Dallas’ Hillcrest Crossing in 2011 we utilized extensive market knowledge and expertise to take the building from 25% occupancy and 20% of first generation vacancy to 100% occupied within 24 months. Here’s how.

The Challenge

Hillcrest Crossing is a three-story premier office and retail complex in North Dallas situated strategically with outstanding access to affluent Dallas neighborhoods in the Park Cities and Preston Hollow.

Despite its excellent location, when ownership acquired Hillcrest Crossing the office component was only 25% occupied, ground level retail included 20% of first generation vacancy and the physical building was still in need of completion.

The Strategy

PegasusAblon assumed management and leasing duties in 2011 and immediately evaluated the positioning of the asset, determining healthcare and wellness to be the most advantageous use for achieving ownership goals. This would involve revising property parking within PD 766 to allow for increased parking to accommodate medical office use. PegasusAblon also presented a case for a “retail style” unified tenant pylon sign. Both measures were ultimately ratified by the city council, allowing PegasusAblon to move forward with a strategic leasing plan.

On the lower street level retail the strategy was to lease to a complimentary mixture of high-end wellness, retail and food service establishments; with the neighborhood’s population in mind. New food establishments such as Simply Fit Foods and Tasti-D-Lite Frozen Yogurt appealed to the health conscious consumer, and personal services such as Eco Cleaners, Toni & Guy and Hillcrest Nail Salon rounded out the mix for visiting consumers.

The Results

Within 12 months PegasusAblon had leased 100% of the upper two floors to UT Southwestern and other complimentary high-end medical offices providing services including oral surgery, aesthetic dentistry and orthopedic therapies. Within 24 months, all construction was complete and the entire property was leased to 100% occupancy with high credit tenants at above the prevailing market rates.

Download a PDF of the Hillcrest Crossing case study here.

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