Steps to hike occupancy include HVAC upgrade, lobby makeover
Memphis Business Journal - by Andy Ashby
The One Commerce Square lobby is being used for events.
U.S. Bancorp is investing in improvements to One Commerce Square as part of its strategy to lure new tenants to the 475,082-square-foot Downtown property, which currently is 47% occupied. The bank, which acquired the building in an FDIC transaction in late 2009, is spending $1.2 million to replace the 37-year-old cooling towers and improve the building’s HVAC equipment. The project entails the installation of two Baltimore Aircoil Co. cooling towers with 1,425 tons of capacity each, with one ton having the capacity of 15,000 BTUs, as well as the replacement of the pit roof located under the towers’ structure, the replacement of other roof areas and water-proofing throughout the property. “This is a major investment, something which should have been done a long time ago,” Commercial Alliance Management LLC president Kemp Conrad says. “I think it shows our commitment to our tenants and prospects we’re working with that this will remain the place to do business Downtown.” Commercial Alliance has handled some expansions, renewals and new leases at the property since taking over leasing and management in May.
The Memphis Business Journal’s latest office real estate guide listed lease rates at One Commerce Square of $15.50-$17.50 per square foot. It’s also in discussion with at least four prospects for “significant” leases, according to executive vice president Mark Jenkins. “Because of today’s environment with the financial market and capital markets, to get owners to step up and make improvements shows their commitment to the building and Memphis,” he says. Commercial Alliance has been working to “activate” the building’s lobby by donating it to organizations for charity events and parties. “We’ve really tried to bring life to that beautiful lobby,” Conrad says. U.S. Bancorp is putting in new furniture and flat screen televisions throughout the lobby to update its look. Finally, Commercial Alliance has started a program of illuminating the bank lobby’s Ionic columns using a different color each month. “We attained these effects real inexpensively by relocating unused lamps we found at the auditorium and other places,” senior asset manager and vice president Ricardo Monroy says.