Challenge: The Landmark is located on South University Avenue, which now boasts some of the highest rental rates in the state of Michigan. However, at the time of this transaction, the economic recession was ongoing and posed a wide variety of challenges.
The developers viewed the retail component of the development as an asset to the student apartments above, so achieving the right tenant mix was crucial. Ownership requested a combination of local and national retail tenants, which proved challenging given the high rental rates.
Strategy: National marketing was a key strategy for the team in securing AAA-quality tenants for this property’s retail spaces. In addition to providing landlord representation, tenant representation, lease negotiations and advanced marketing strategies, the team delivered key market knowledge for the retail portion of the property. The team also led conflict resolution between several parties that assembled multiple land parcels, making the development possible.
Result: The team was able to successfully secure commitments from large national tenants and one local tenant before the project was even completed. Thanks to strong local relationships, Colliers was able to gain interest from retailers that had previously not wanted to be on campus. To date, The Landmark is the most high-profile student development on campus at University of Michigan.