Best Value Practices: Leasing
PREPARED BY:
STEPHEN CUGIER
Vice President
Dir +1 206 382 8553
Mob +1 206 851 9865
COLLIERS INTERNATIONAL
601 Union Street · Suite 5300 · Seattle, WA 98101 · +1 206 223 0866 · www.colliers.com
[email protected]
COLLIERS INTERNATIONAL
| 601 Union Street, Suite 5300 | Seattle, WA 98101
Tenant Representation Process
Tenant Representation Process
1. Preliminary Analysis
> Hire Colliers International
- Appoint the Colliers team
- Start saving time & money
> Evaluate Business Market
- Industry changes
- Competitors
- Business goals
> Review Existing Real Estate Portfolio
- Lease rate
- Square footage
- Lease expiration
- Renewal notification dates
- Rights to renew/expand
- Management decision-making process
> Needs Analysis
- Square footage: short-term & future
- Location
- Occupancy date, lease term
- Budget
- Layout & work flow
- Image: class, age, architecture, quality,
amenities, access, security, parking
2. Selecting Alternatives
> Strategy
- Wait and review
- Renew
- Relocate
> Market Overview
- Trends, supply & demand, vacancy,
absorption, rents, recent deals, concessions
> Market Survey
- Colliers International to prepare preliminary
options list
- Select buildings to tour
> Tour & Inspect
- Tour buildings
- Compare/alternatives
- Determine short list
> Request for Proposal (RFP)
- Colliers International to prepare RFP(s) for
Tenant’s review
- Send RFP(s) to select buildings
COLLIERS INTERNATIONAL 601 Union Street · Suite 5300 · Seattle, WA 98101 · +1 206 223 0866 · www.colliers.com
3. Evaluation & Comparison
4. Negotiation
5. Construction & Move In
> Select Vendors
- Architect
- Moving company
- IT provider/cabling
- Phone company
- Furniture company
- Interior designer
> Review Landlords’ Responses to LOI
- Qualitative
- Quantitative
- Refine short list
> Architect Prepares Working Drawings;
Obtains Necessary Permits
> Receive Landlords’ Proposals
> Negotiate LOI
> Review Landlords’ Proposals
- Qualitative
- Quantitative
- Define short list
> Select Finalist
- Sign LOI
> Move-In
- Furniture, equipment, accessories
- Follow up “punch” list
> Finalize Space Plan
> Office Opens
> Space Plan
- Ask Landlord to pay for space plan
- Review space plans for efficiency,
work flow
- Refine short list
> Review Lease; Negotiate Legal Terms
> Letter of Intent (LOI)
- A non-binding list of business terms
- Colliers International to prepare LOI’s for
client review
- Send to short-listed properties
> Construction Estimates
- Value engineering
> Lease Execution
> Furniture, Telephone, Equipment
Ordered
> Construction
- Tenant and architect monitor build-out
Puget Sound Office Market Overview
PUGET SOUND MARKET INDICATORS
Q4 2013
Y-O-Y
VACANCY
NET ABSORPTION
CONSTRUCTION
RENTAL RATES
SALES VOLUME
SALE PRICE
2.0
18%
1.5
16%
1.0
14%
12%
.5
10%
0
8%
-.5
Net Absorption
4%
Vacancy
-1.5
-2.0
6%
LEGEND
-1.0
2006
2007
SEATTLE
MARKET
SNAPSHOT
2008
2009
2010
SEATTLE MARKET
TOTAL VACANCY
Q4 2013
2011
2012
Vacancy
Net absorption (millions)
PUGET SOUND ABSORPTION AND VACANCY RATES
2%
2013
SEATTLE CBD
TOTAL VACANCY
Q4 2013
0
SEATTLE CBD
CLASS A RENTAL RATE
Q4 2013
11.35% 13.71% $34.52
COLLIERS INTERNATIONAL 601 Union Street · Suite 5300 · Seattle, WA 98101 · +1 206 223 0866 · www.colliers.com
/ SF
CHANGE IN SEATTLE CBD
CLASS A RENTAL RATE
Q4 2012-Q4 2013
SEATTLE OVERALL
ABSORPTION
2012
SEATTLE OVERALL
ABSORPTION
2013
12.9% 1,376,918 828,330
Tenants in the Market
Professional Services
9.1%
Non-Profit
1.5%
Government
1%
Healthcare
2.9%
Legal
4.3%
Life Sciences
6.5
Arch/Engr
6.5%
Active tenants
in the market:
3,224,269 SF
Other
28.1%
COLLIERS INTERNATIONAL 601 Union Street · Suite 5300 · Seattle, WA 98101 · +1 206 223 0866 · www.colliers.com
Tech
40.1%
Large Block Summary
100K+ SF
Blocks
‘09‘10
MET PARK NORTH
Class A
Vacancy
20.1%
605 UNION
705 UNION
505 FIRST
83 KING
RUSSELL
INVESTMENTS
WEST 8TH
1918 8TH
1800 9TH
7TH & MADISON
2201 WESTLAKE
1100 EASTLAKE
2601 ELLIOTT
1600 7TH
1260 MERCER
PIKE PLAZA
645 ELLIOTT
SIXTH & WALL
COLUMBIA CENTER
1111 THIRD
635 ELLIOTT
100K+ SF
Blocks
Class A
Vacancy
12.09%
‘14
635 ELLIOTT
1111 THIRD
1201 THIRD
EXCHANGE
BUILDING
2200 1ST
WEST LAKE
UNION CENTER
5TH & BELL
Lake Union
Class A Vacancy
New
Construction
DEXTER STATION
COLLIERS INTERNATIONAL 601 Union Street · Suite 5300 · Seattle, WA 98101 · +1 206 223 0866 · www.colliers.com
400 FAIRVIEW
HILL7
TROY BLOCK
HOMEPLATE
CENTER SOUTH
1.3%
THE
MOVE
TO
PUYALLUP
DESIGN
PROCESS
Strategic
Information
•
Project
Information
• Design
• Documentation
• Bid
• Construction
Programming
• Planning
Facility
Information
•
•
Facility Management
Real Estate & Move Management
where we
BEGAN
W H AT W E D E L I V E R E D
New workplace solution that consolidated facilities
to gain efficiency and better engage employees.
lobby
open office
kitchen
GMP DEVELOPMENT
I N T E G R I T Y l L E A D E R S H I P l PA S S I O N l E X C E L L E N C E
INTEGRATED APPROACH
I N T E G R I T Y l L E A D E R S H I P l PA S S I O N l E X C E L L E N C E
CONTINUOUS COLLABORATION
Baseline
Schedule

Procurement
Plan
Site
Survey
Good
Working
Documents
Constructability
Review
Timely Sub
Release
Good
Bid
List
Final Permit
Inspection/
QA/QC Sign Off
Best-in-Class
Collaborative
Management
I N T E G R I T Y l L E A D E R S H I P l PA S S I O N l E X C E L L E N C E