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Challenge
Stoneterra Medical Plaza, located in the competitive Stone Oak submarket, was acquired with approximately 65% occupancy. Two years after acquisition, a full-floor tenant relocated, reducing occupancy by 33%. Without a proactive repositioning plan, the property risked further decline in a market saturated with older medical office spaces. Recognizing the need for expertise in leasing and repositioning, the new ownership brought on Stream.
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Strategy
Stream adopted a proactive leasing approach tailored to address Stoneterra’s challenges. By leveraging GIS data selectively, the team identified key opportunities within the submarket, focusing on underserved tenant types and healthcare specialties. The intelligence enabled Stream to strategically market the building’s large, flexible spaces to tenants whose needs aligned with the property’s offerings.
In parallel, Stream implemented a flexible leasing plan to address the full-floor vacancy. Designers were engaged early to develop a demising plan that allowed for the space to be configured into smaller suites if necessary. This dual-path strategy provided the ability to pivot quickly, ensuring minimal downtime while maintaining a focus on attracting high-quality tenants to bolster the building’s market position.
Results
Over the course of three years, Stoneterra Medical Plaza’s occupancy increased from 33% to 98%. The initial full-floor vacancy was quickly leased to a large tenant, followed by the successful lease-up of the remaining space to smaller healthcare providers. The strategic targeting and early planning efforts were instrumental in streamlining the leasing process and ensuring the property met tenant demands.
Stream’s efforts not only revitalized the property’s financial performance but also elevated its status within the submarket. The success of Stoneterra Medical Plaza underscored the importance of combining targeted market intelligence with operational agility to reposition underperforming assets effectively.
