FirstBank Southwest Tower
Transformation of a Downtown Landmark.
Occupancy increased from 44% to 100% and NOI increased by 230%
Key Highlights
- 44% → 100% occupancy within a few years
- 230% increase in NOI
- $20M+ capital and tenant improvement projects managed
- Historic tax credits secured through National Historic Register designation
- Downtown TIRZ incentives including cash incentives and a 20-year tax freeze
The Opportunity
In 2018, the building’s occupancy fell from 98% to 44% when three major tenants independently vacated within a short period. One built its own facility, another purchased a larger building, and the third downsized its Amarillo operations. These departures prompted a comprehensive leasing and repositioning strategy to restore occupancy and strengthen the property’s market position.
The Strategy
Gaut Whittenburg Emerson’s leasing and property management team repositioned the property through aggressive leasing and significant capital improvements designed to strengthen its market appeal and enhance the tenant experience. Major upgrades included a fire sprinkler system spanning all 31 stories, a new fire alarm panel and smoke detection system, new chillers and an energy management system, elevator modernization, parking lot expansion and renovation, ADA restroom conversions, LED lighting, enhanced security, lobby and common area renovations, and new tenant amenities.
As part of the repositioning strategy, two upper floors were converted into luxury residences known as the Residence at 600, creating a mixed-use property that broadened its appeal and diversified revenue sources. The team also secured Downtown TIRZ incentives, including cash incentives and a 20-year property tax freeze, to help offset the significant cost of converting existing office space into residential units.
The Results
Within a few years, occupancy increased from 44% to 100%, securing several high-profile, long-term tenants.
The successful lease-up increased the building's NOI by approximately 230%, while energy improvements reduced operating costs.
The team managed more than $20 million in capital and tenant improvement projects, and the property was added to the National Historic Register, enabling ownership to utilize historic tax credits to offset a portion of the repositioning costs.
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