Challenge
Mallick Tower is a Class B office building located just outside Downtown Fort Worth. Like many office assets across DFW, the building faced occupancy and income challenges following the post COVID market disruption. By 2022, Mallick Tower’s net operating income (NOI) had fallen significantly, driven largely by occupancy dropping to approximately 70 percent. The building risked prolonged under performance despite its strong location and physical attributes.
Only the combined, hands-on efforts of leasing and property management drove income growth, stabilized occupancy, and repositioned the asset without heavy capital expenditures.
Solution
The HLC team implemented an operating plan centered on two priorities: income growth and expense discipline.
On the revenue side, the team focused on tenant retention and targeted leasing efforts aimed at “right-fit” tenants—occupiers whose needs aligned with the building’s layout, parking, and strengths in accessibility. This approach allowed spaces to be leased efficiently, with limited tenant improvement spend, while maintaining competitive rental rates.
Lease restructurings also played a key role. In select cases, early terminations were negotiated to replace weaker tenants with stronger occupants.
This improved short-term income reliability and long-term asset quality.
On the expense side, active property management directly protected NOI. Preventative maintenance programs reduced unexpected capital costs and extended the life of building systems. Earlier investments in HVAC upgrades and an energy management system continued to deliver results. Between 2013 and 2021, electricity costs were reduced by more than 35 percent, saving approximately $51,000 annually. These efficiencies remained in place even as occupancy recovered, keeping operating costs in check as revenue increased.
Results
Mallick Tower’s NOI grew from approximately $731,000 in 2022 to more than $1.1 million in 2026, representing a significant recovery and expansion of cash flow. Occupancy increased from roughly 70 percent to 100 percent, including more than 18,000 square feet of renewals and nearly 14,000 square feet of new leases in a single year.
Importantly, these gains were achieved without significant new capital investment, driven instead by HLC’s disciplined property management, tight expense control, and thoughtful leasing execution. The result was a repositioned asset with stronger cash flow, reduced operational risk, and improved long-term performance, transforming Mallick Tower into a high-performing, value-oriented office option that offers a Class A experience at a more accessible price point.
Learn how we can help rebuild NOI on your property
Contact Holt Lunsford Commercial today | 972.241.8300
