02 May Maximizing Price and Minimizing Vacancy Time

Fabian Edwards of ELIFIN® represented the seller in the successful sale of the medical office property located at 9237 Bluebonnet Blvd in Baton Rouge, LA.

Challenge

The owner, a retired physician who had practiced out of the building for years, had leased the property to another doctor with an expectation that the tenant would purchase it when the lease expired. When that time came, the tenant was not in a position to move forward with the acquisition, leaving the owner without a clear path forward. With the lease ending and no buyer in place, the owner faced the prospect of carrying a vacant medical office building while splitting time between Baton Rouge and another country. Coordinating a transaction across time zones and calendars added another layer of complexity to an already time-sensitive situation.

Strategy

Fabian launched an aggressive marketing campaign with a clear objective: get the property under contract as close to the lease expiration as possible to minimize vacancy exposure. He also took a deliberate approach to pricing, recognizing that a comparable sale in the same office park had recently traded at $150 per square foot off-market. Fabian understood that the comp was not a reliable benchmark for this property. That building had a long-term lease with a below-market rate in place, which suppressed its value. This property, by contrast, had a clear market lease and a strong location, and Fabian priced and positioned it accordingly.

Result

The strategy produced immediate results. Fabian secured a primary buyer and a signed backup offer while the property was under contract. When the primary buyer was unable to proceed, the backup offer was already in place and the transaction moved forward without interruption. The property closed within 60 days of the tenant vacating, limiting vacancy to a minimum. The final sale price came in at $205 per square foot, a 37% premium over the nearby off-market comp, a direct result of Fabian’s market knowledge and refusal to let an irrelevant comparable anchor the pricing conversation.

Leading Agent

Fabian Edwards, JD/DCL