Saint John, NB, 31st August 2024, ZEX PR WIRE, R2 Capital is proud to announce that our property in Saint John, 75 Prince William St. a 35,033 sq ft office building has achieved full occupancy. This milestone is a testament to our strong leasing team and their commitment to providing top-tier environments for our tenants.
In the past 12 months, we have successfully renewed and signed new leases for 85% of the building’s occupancy, reflecting a robust confidence in our property. The Weighted Average Lease Term (WALT) now stands at 4.7 years, underscoring the long-term commitment of our tenants. Additionally, we have seen a 21% average increase in lease rates for those who renewed their leases, highlighting the growing value of this prime location.
Spencer Riche, Co-founder of R2 Capital, commented on the achievement: “We are thrilled to see 75 Prince William fully leased. Our team has worked tirelessly to ensure that this building meets the evolving needs of our tenants. We view each tenant as a partner, and our focus is on creating lease agreements that foster the best possible working environment. This approach has led to win-win situations for everyone involved.”
The market for office space in Saint John has been challenging, with a current vacancy rate of 25%, according to a report from Turner Drake. Despite these conditions, 75 Prince William has remained a desirable location for businesses. Our ability to maintain full occupancy in such a competitive market speaks volumes about our team the quality and appeal of our property.
Unlike large institutional investors who focus primarily on markets like Toronto and Vancouver, or smaller investors who may lack the resources to offer high-quality spaces, R2 Capital has found a sweet spot. Our dedicated focus on Saint John allows us to provide a desirable product in a prime location, catering to the unique needs of our tenants.
As we move forward, we remain committed to working closely with our tenants, continually improving the building, and ensuring that 75 Prince William remains the premier choice for businesses in Saint John.
Spencer, also offered his perspective on the long-term outlook for the office sector: “Despite the prevailing negative sentiment around office spaces, we are confident in the long-term potential of this sector. Globally, we’re seeing a shift as employers bring their teams back to the office. The same factors driving the appeal of residential real estate—growing populations, expanding businesses, and limited supply are equally relevant to office spaces. However, unlike residential, a significant portion of existing office inventory is being either demolished or converted into residential units. Additionally, the high costs of construction and achievable market rents make it uneconomical to build new, effectively capping the available spaces. We believe we are still in the early stages of this cycle, but we are confident that our strategy will deliver substantial returns over the long term.”
R2 Capital provides individual investors with access to institutional-grade real estate assets, specializing in necessity-based retail, office and residential real estate; sourcing opportunities both on and off-market across North America.
From acquisition to disposition, R2 Capital oversees the entire investment lifecycle in-house, leveraging top talent in legal, acquisitions, financing, property management, leasing, and other vital areas.
Disclaimer: The views, suggestions, and opinions expressed here are the sole responsibility of the experts. No Micro Trustiva journalist was involved in the writing and production of this article.