stokes.weir exclusive representation (cs)
TRANSCRIPT
www.dtz.com
Expert Real Estate Service, True Client Advocacy
A full service approach for industrial owners and occupiers
CUSTOMIZED REAL ESTATE SOLUTIONS
Real Estate OptionsToday’s rapidly changing business climate makes it more important than ever to maximize the value of your real estate decisions, while minimizing the financial liability of occupancy. Our team believes in the benefit of investigating all viable options and leveraging them against each other to reach the lowest total occupancy cost. Real estate options to be considered could include some or all of the following:
• Lease multi-tenant new facility • Lease single tenant existing facility• Lease build-to-suit facility• Purchase and renovate existing facility for ownership• Purchase and renovate existing facility for sale/leaseback• Build-to-suit for ownership• Build-to-suit for sale/leaseback
DTZ’s Exclusive Representation Process is a proven strategy for making sound commercial real estate decisions. Our 10-step process encompasses brokerage, construction services, location analysis and economic incentive procurement.
We focus on your real estate so you can focus on your business
Our mission is to:• Offer you a variety of real estate solutions• Maximize economic incentives• Achieve the best economic terms and conditions• Serve as your advocate throughout development and construction process• Streamline your real estate decision-making process
Strategic solutions for industrial real estate
You do, if your company has current or future plans to:• Expand• Consolidate• Renew existing lease• Renovate• Relocate• Construct a new facility• Purchase new machinery/equipment• Create new jobs
ClientOwn
Lease
Buy
Build
$
Decision Process
Timeline
2015 Jan Feb March April May June July Aug Sept Oct Nov Dec
1. Establish Requirementa) Review business planb) Establish budgetc) Determine space needs
2. Assemble Teama) Identify additional needsb) Short list vendors to interview
(PM, CM, GC, Architect, etc)
3. Survey the Marketa) Search MLS listings, canvass
market, inform brokersb) Narrow preliminary selections
Tour and Rate each property
4. Craft & Distribute RFPsa) Develop RFP with future
business needs in mindb) Obtain preliminary space
plans, budgets, schedulesc) Determine opportunities for
financial incentives
5. Collect & Analyze Proposalsa) Prepare Financial Analysis &
side-by-side RFP Analysisb) Refine fit plansc) Design development, FF&E
Inventory & Selection
6. Present Analysis to Clienta) Identify client criteriab) Summarize information in a
easy to understand formatc) Make recommendationsd) Concept Developmente) Site selection
7. Negotiate Leasea) Select the best two propertiesb) Prepare LOIs for client reviewc) Negotiate the business pointsd) Work with attorneyse) Facilitate lease executionf) Approve conceptual plansg) GC Bid & Budget development
8. Obtain Approvala) Execute Leaseb) Construction commencementc) IT/FF&E Installationd) Move
9. Ongoing Representationa) Provide CAM audit servicesb) Provide periodic market
updatesc) Analyze termination, renewal
& expansion options as needs arise
www.dtz.com
Needs Analysis Company Name
Company Address
Consideration Client Response
Size
Image: View from ownership, employees,
customers, and suppliers
Location/ Access: Proximity to customers, freeways, public
transportation, suppliers, parking, and
visibility
Vehicle Parking: Number of stalls, costs, times of heaviest usage (day and night); overlap of parking
during shift change, parking for customers
Truck Parking: Number, type, and hours (24’ straight
trucks and 53’ trailers)
Land Area:
Provide for building, future expansion,
employee, and customer parking, truck parking, and any outside storage needs
Life Safety Systems: Review life safety systems, sprinklers, smoke detection, fire codes
Own vs. Lease: Review long-term growth needs of the
company
Timing: When do you want to move in? How much
lead time is needed (i.e. to order
equipment, furniture, install phone/ data, attain governmental incentives or approvals,
cassidyturley.com
Needs Analysis
Timeline
Timeline
2015 Jan Feb March April May June July Aug Sept Oct Nov Dec
1. Establish Requirementa) Review business planb) Establish budgetc) Determine space needs
2. Assemble Teama) Identify additional needsb) Short list vendors to interview
(PM, CM, GC, Architect, etc)
3. Survey the Marketa) Search MLS listings, canvass
market, inform brokersb) Narrow preliminary selections
Tour and Rate each property
4. Craft & Distribute RFPsa) Develop RFP with future
business needs in mindb) Obtain preliminary space
plans, budgets, schedulesc) Determine opportunities for
financial incentives
5. Collect & Analyze Proposalsa) Prepare Financial Analysis &
side-by-side RFP Analysisb) Refine fit plansc) Design development, FF&E
Inventory & Selection
6. Present Analysis to Clienta) Identify client criteriab) Summarize information in a
easy to understand formatc) Make recommendationsd) Concept Developmente) Site selection
7. Negotiate Leasea) Select the best two propertiesb) Prepare LOIs for client reviewc) Negotiate the business pointsd) Work with attorneyse) Facilitate lease executionf) Approve conceptual plansg) GC Bid & Budget development
8. Obtain Approvala) Execute Leaseb) Construction commencementc) IT/FF&E Installationd) Move
9. Ongoing Representationa) Provide CAM audit servicesb) Provide periodic market
updatesc) Analyze termination, renewal
& expansion options as needs arise
www.dtz.com
Needs Analysis
Present analysis to client
Determine Options: own/lease sale/lease new/existingEvaluate completed community incentive RFIs
Determine client representative(s)
Determine real estate specialist(s)Determine construction specialistDetermine economic incentive specialist
Determine facility characteristics/sizeDetermine location parametersDetermine labor requirementsComplete incentives worksheet
Create project timelineDistribute community incentive request for information (RFI)
Engage legal counselEngage financial advisor
Qualify environmental firmQualify architectural/engineering firm
Do site/building inspectionsDo financial comparison analysis
Determine qualified contractors/developersDistribute RFPs
Define Project Objectives
Establish Client Requirements
Engage DTZ
Assemble Project Team
Create Conceptual Building Documents
Develop Request for Proposals (RFP)
Do site/building inspectionsDo financial comparison analysis
Present conceptual documents to client
Create site plans, floor plans, building elevationsCreate project specificationsDo operational/future needs analysis
Establish design scheduleReview plans/specifications at 30%, 60%, 90% completion intervalsEnsure client’s needs are reflected on construction documents
Facilitate Municipal Approval Process
Finalize Economic Incentives
Negotiate Final Proposals
Analyze Proposals
Direct Project Construction
Oversee Design Development
Plan/Implement Move
Conduct preliminary interviews with contractors/developersDetermine short list of contractors/developersDetermine preferred occupancy arrangements
Receive proposalsDo financial analysis of proposals
Present options to client
Complete implementation of incentive procurement strategiesAssist with presentations to funding entitiesNegotiate incentive packagesCommence incentive administration
Prepare proper plan submissionTrack technical review processSeek planning commission approvalTrack building permit process
Achieve final approvals from client
Ensure timely exchange of information
Involve Relocation StrategiesAssist client’s vendors
Recommend/determine contractor/developer
Manage contract document adherenceAttend progress meetingsProvide weekly schedule updatesReview/substantiate change order requestsPrepare monthly pay application packagesConduct final walk-throughMonitor completion of punch list
Conduct turn-over meeting
Incorporate accepted value engineering ideasRevise building documents/project specificationsPrepare financial analysis of final proposalsConduct final interviewsDo final negotiation of business terms
TeamworkClientDTZ
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Identify Potential Communities/ Sites/Buildings
DTZ’s Step-by-Step Process
CUSTOMIZED REAL ESTATE SOLUTIONS
Tyler Allen Research AnalystT +1 612 347 9311 [email protected]
Tyler Allen is responsible for provide market data, strategic analytical tools, and insightful interpretation to assist DTZ with executing client services and new business pursuits.
David M. Stokes, SIOR Vice PresidentIndustrial Real Estate Specialist T +1 612 347 9366 [email protected]
David Stokes specializes in the sales and leasing of industrial properties in the Minneapolis-St. Paul Market with a focus on Owner/Occupier Sales and Landlord and Tenant Representation in the North and East Metro submarkets.
Boston Weir, AssociateIndustrial Real Estate Specialist T +1 612 347 9336 [email protected]
Boston Weir focuses primarily on new business development, Landlord and Tenant Representation, Project Leasing, Investment and Owner/Occupier Sales in the East metro industrial submarkets.
Chelsey L. Eck, Administrator Brokerage Services T +1 612 347 9396 [email protected]
Chelsey Eck is the administrator for the industrial brokerage services division.
DTZ OVERVIEW
OUR TEAM
About DTZ DTZ is a global leader in commercial real estate services providing tenants, occupiers and investors around the world with a full spectrum of integrated property solutions. Our core services include agency leasing, tenant representation, integrated property and facilities management, capital markets, investment and asset management, valuation, building consultancy and project management. DTZ’s award-winning research and consulting services provide clients with global and local market knowledge, forecasting and trend analysis to make the best long-term decisions for their continuous success.
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DTZ by the numbers
260Offices
50Countries
194Cities
28,000Employees
56,000People, including contractors
2,320Brokers/agents
3.3B sq ftManagement portfolio
US$63BTransaction volume
US$2.9BRevenue
Crescent Electric Supply Co.
Gamet Manufacturing
Location:7400 Boone Avenue North, Brooklyn Park, MN
Building: 57,000 SF industrial facility
Challenge:Since 1937, Gamet Manufacturing has
been recognized in the grain industry for producing high quality grain sampling
solutions. Gamet had expected to extend their lease, but were unable to come to terms with their landlord at the 11th hour.
Strategy:A property was identified, but had some challenges. David worked closely with Gamet to identify the property’s challenges, and complete detailed property inspections of HVAC, roof, mechanical and electrical systems. David used his resources of professional contractors to make sure Gamet completed all their inspections with quality analysis and pricing. At the same
time, David was working with the current landlord to extend the lease.
Results:Through David’s hard work and experience with industrial property acquisitions, Gamet was able to extend their lease to allow an orderly move, close on the property acquisition, and have the seller move out on schedule.
Locations:Minneapolis and Saint Paul, MN
Building: 53,000 SF
To view more Case Studies visit: www.mspindustrialrealestate.com
Buyer Representation
Tenant Representation
CASE STUDIES
Challenge:Crescent
Electric Supply was contacted by
a potential buyer for a property where
they had a term lease in place. This potential
buyer was interested in the entire building and
would need Crescent Electric to vacate that building, even
though Crescent had more than three years remaining on their lease.
Strategy:
The team discussed and analyzed Crescent’s financial lease obligations over
the next 3+ years for their facility in St. Paul,
as well as their operating and holding costs for a facility they owned and occupied in Golden Valley. Stokes and Weir concluded that Crescent could achieve a significant cost savings, as well as better serve their growing customer base by repositioning their real estate portfolio in the Minneapolis/St. Paul market.
Results:The reposition ultimately included three simultaneous negotiations, an assignment and assumption agreement with the buyer of their facility in St. Paul, as well as identifying and executing two new lease contracts. In addition, plans were made to value and market Crescent’s Golden Valley facility. The entire project timeline from onboarding the DTZ team through final execution of both new leases was less than five months, and led to cost savings of just under $1 million in the next three years.
Hunt Electric
2633 Minnehaha Avenue South
Location:Minneapolis, MN
Building: 78.500 SF modern office/warehouse
Challenge:DTZ’s was hired to market a 78,500
square-foot office/warehouse located in Seward Place Industrial Park, three
miles south of downtown Minneapolis. The property had been marketed by three other brokerage firms without succes prior to DTZ’s involvement.
Strategy:David and his team initiated an aggressive, multi-pronged, marketing campaign. With the marketing effort, two prospective buyers stepped forward with offers. David then used his negotiating expertise to create a bidding situation where both buyers increased
their offering price. In addition to the increased price, David negotiated other business issues, like earnest money and shortened the closing date to the benefit of his client.
Results:DTZ was able to solicite interest from two prospects, which allowed the client to sell the property at a price higher than the listing price.
Challenge:Hunt Electric
had outgrown its current space
and was no longer able to expand at
the location. Mike Hanson, President of
Hunt Electric, engaged Dave and his team to assist
in finding a new facility. The search was for a unique
balance of office and warehouse space.
Strategy:David first worked with his client to
fully understand its immediate, and long-term needs. Since the needs were a unique
combination of office and warehouse space, existing buildings and new construction were considered.
David and his team then searched the market and identified additional buildings. One was selected that met Hunt Electric’s needs, at a higher price, but with more functionality and lower improvement costs.
With the improving real estate market, there was competing interest in the property. David used his negotiating skills to lead the seller to select his client, even though his client’s price was less than the competing offer. To do this, David emphasized the quality of his client and the certainty that the deal would proceed and close.
Results:With David’s market knowledge and negotiating expertise, Hunt Electric was able to acquire a property that was a great fit for their long-term growth needs, was on budget and met their timetable.
Location:Saint Paul, MN
To view more Case Studies visit: www.mspindustrialrealestate.com
Building: 160,700 SF office/warehouse
Seller Representation
Buyer Representation
CASE STUDIES