consulting proposal for
DESCRIPTION
Consulting Proposal for. Portfolio Financial Services Co. Prepared For: Jerry Hudspeth, President Bill Agnew, Chief Financial Officer Prepared By: Mark Fraser SIOR Brandon O’Leary GVA Kidder Mathews. Key Issues and Objectives. Assignment Targets Market Relocation/Renewal Economics - PowerPoint PPT PresentationTRANSCRIPT
Consulting Proposalfor
Portfolio Financial Services Co.
Prepared For:
Jerry Hudspeth, PresidentBill Agnew, Chief Financial
Officer
Prepared By:
Mark Fraser SIOR
Brandon O’Leary
GVA Kidder Mathews
Key Issues and Objectives
Assignment TargetsMarketRelocation/Renewal
EconomicsProcessTeam Members
Project Team Members
GVA Kidder Mathews:
Mark D. Fraser, SIOR –
Project Manager and Negotiation
Brandon O’Leary
Project Coordinator
Monte Haynes – Construction Management
Project Team Members
Hills Design - Sheryl Johnson
Space Planning/Evaluation
PFSC – Bill Agnew
Assignment Objective
Reduce Rental Rate to market or belowNo PFSC Capital Expenditure Get Concession Package from Landlord/PDC Flexibility in Lease Term Free Parking Forever
Portland Office Market
Vacancy 1974-2007 (est)
(estimate)
Office VacancyPortland Metropolitan Area
0%
5%
10%
15%
20%
25%
1974
1976
1978
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
Portland Office Market
Portland Office Market 2000 vs. 2004
2000 Overall Vacancy 3.5% Rents peaking Class A Rents up to
$30 Class B/C rents > $20 Very little flexibility
for term, rent, capital exp.
2004 Overall Vacancy 14% Rents 40% off of
peak Class A Rents up to
$24 Class B/C in free fall Significant flexibility
for term, rent, capital exp.
Portland Office MarketMultnomah and Washington
Counties• 125 spaces in 74
building• 27% vacancy in large
vacancy properties• Average time on the
market 17 months
Portland Office MarketWeston/American Property
Management• 24% vacancy• Up from 18% Q1, 2003• Average time on the
market 13 months• PFSC is the second
largest tenant in the portfolio
The Process:
A Competitive Market Approach
The Process:
A Competitive Market Approach
Relocation Renewal Economics Tenant Costs
Physical Move $5.00/sf
IT Move $3.50/sf
Relocation Renewal Economics Landlord Costs
Marketing Time (9 months)
$15.00/sf
Leasing Fees $9.00/sf
Tenant Improvements $25.00/sf
Construction Time $5.00/sf
Free Rent $5.00/sf
Total Costs $59.00/sf or
3 years rent
The Process: A Competitive Market Approach
Establish a Real Estate Plan Definition of RequirementSurvey of the MarketSelection of Most Qualified PropertiesSolicitation of ProposalsAnalysis of ResponsesSelection of Appropriate Responses Negotiation of LeasePost Transaction Documentation
The Process:
Establishment of a Real Estate Plan
Conforms to and supports your 5 year planHas pre-approved timelineRoles and responsibilitiesAccountability and predictability
The Process:Definition of Requirement
LocationAmenitiesTransit
EconomicsRentTenant ImprovementsCapital CostsTerm
ParkingImage
Building FeaturesInternal ConfigurationAmenitiesSound AttenuationHVAC/LightTelecommunication StorageStructural Integrity
Term, Extension, Termination
The Process:Survey of the Market
597 spaces in 114 buildings within the freeway loop
The Process:Selection of Most
Qualified Properties
Tour
The Process:
Solicitation of ProposalsAnalysis of ResponsesSelection of Appropriate Responses
• “If you want to be considered further…” Negotiation Matrix
The Process:
Lease Negotiation, FinalizationPost Transaction Documentation
Unique Reasons to Retain Colliers
Experienced Team
Accountable Process
Warning:
Here comes the selling part.
Mark D. Fraser, SIOR
• 30 years experience in Portland Real Estate
• Management experience
• Top 20 North America in 2003
• Portland Office Broker of the Year 2001
Mark D. Fraser, SIOR• Clients:
– Willamette Week– Unico Properties – Specht Development – A.G.Edwards & Sons– C.E. John – ING – Foster Pepper & Tooze– TRW – Capital Pacific Bank – Harsch Investments – GemStone Systems– Pacific Interpreters– Portland Development Commission – Fujitsu – Prendergast & Associates – Northwest Power Planning Council– Three Oaks Development
Brandon O’ Leary
• Clients:– Unico Properties– Specht Development– Northwest Power and
Conservation Council– Homestead Capital– Yates Matthews & Morasch,
P.C.– Preston Bunnell & Stone, LLP– Pacific Interpreters– Patrick Lumber Company
Pre-approved timeline
Monthly written reports
Weekly Updates
Negotiation Matrix
Post transaction documentation
Accountable Process
Unique Reasons to RetainGVA Kidder Mathews
Experienced Team
Accountable Process