Market Overview
PREPARED FOR
The Morgan Building
PREPARED BY Josh SchweitzSenior Vice President, [email protected]
Travis ParrottOffice/Flex [email protected]
Camille CettinaClient Services [email protected]
May 6, 2013
Our Team
Kidder Mathews
Kidder Mathews is the largest commercial brokerage firm in the Northwest with over 210 brokers in 9 offices spanning from Seattle / Bellevue to San Francisco, Redwood City and Santa Clara in the Bay Area. KM Valuation Advisory Services has the largest number of MAI appraisers in the Northwest and annually conducts over 1,300 commercial property appraisals, and KM Property Management currently manages over 25 million square feet of commercial property.
• Annual Transaction Volume
• $6 billion 3-Year Transaction Total
• 21.1 million SF Leases
• Property Management Portfolio: 25.6 Million SF
• 1,300 Appraisals Per Year
Our Team
Kidder Mathews
Full Service Commercial Brokers
Kidder Mathews Commercial Brokerage Services is comprised of over 210 licensed agents who specialize in handling sale and lease transactions of commercial properties throughout the Pacific Northwest. The brokerage division is further divided into 4 primary marketing groups.
• The Office Group
• The Industrial Group
• The Retail Group
• The Investment/Multi-Family Group
Our Team
The Team
Our team has been formed with different skill sets that compliment a “TEAM” effort to serve out clients.
Josh Schweitz – Senior Vice President / Partner• CAR Rookie of the year award.
• CBRE Rookie of the year award.
• Costar's top 20 power brokers multiple recipient.
• Represented 2 of 3 largest office/flex transactions Portland Westside 2003.
• Represented largest office/flex transaction Portland Westside 2004.
• Represented largest office transaction 2011.
• 14th Year in the commercial real estate industry.
Our Team
Our Team
Travis Parrott– Office/Flex Specialist • Specializes in office leasing and sales.
• Provides market analysis, brokerage and consulting services for tenants and landlords.
• Member of Oregon Entrepreneurs Network & United States Tennis Association.
• As a professional tennis player, played in four major Grand Slam events & won the US Open Major Championship in 2009 in Mixed Doubles.
Our Team
Camille Cettina – Client Services Coordinator• Started her Real Estate career in 2004 and joined Josh at Kidder Mathews in
2011.
• Provides client brokerage and team support .
• Professional actor and director – recipient of the Scotsman Fringe First Award in 2009.
Our Team
Significant Listing ExperienceBuilding Owner Square Footage
Montgomery Park/Albers Mill The Bill Naito Co 786,404 SF
Nimbus Corporate Center Shorenstein 688,307 SF
Cornell Oaks Corporate Center PS Business Parks 685,192 SF
Historic US National Bank Block
New Market Theater Beardsley Building Development 328,750 SF
The Blagen Block
Park 217 Walton Street Capital 256,530 SF
Nimbus Oaks RREEF 171,882 SF
Cascade Square Harsch Investments 149,000 SF
Our Team
Current Listing AssignmentsBuilding Owner Square Footage
Montgomery Park/Albers Mill The Bill Naito Co 786,404 SF
Nimbus Oaks Deutsche Asset and Wealth (RREEF) 171,882 SF
Cascade Building Felton Properties 89,850 SF
Hall Corporate Center Beckal, LLC 51,216 SF
Exchange Building Felton Properties 21,500 SF
The Dale Building Quixote Investment, LLC 20,000 SF
139 SE Taylor (Market Supply) Market Investments, LLC 20,000 SF (Under contract)
Our Team
2012 - 2013 Transactions
Landlord RepresentationClient SF SubmarketVesta 46,550 TigardDaimler 41,252 NW Daimler 38,489 NW Esco 23,331 NW Apex 16,534 TigardIkon 15,995 TigardKaiser 15,400 ClackamasSeaChange 12,097 NW Snow Peak 10,000 NW Soderstrom Architects 8,088 NW NW Cardiovascular 4,930 NW Enterprise-Rent-Car 4,764 TigardVigillo 4,537 NW Madfish 2,380 NW IVC 2,057 NW VelocX 1,618 NW NW Foot & Ankle 1,613 NW Idea Learning 1,273 NW
Our Team
2012 - 2013 Transactions
Tenant RepresentationClient SF SubmarketHSBC 123,210 TigardUTi 80,479 CBDServeron 24,365 Sunset CorridorRohde & Schwarz 19,848 Washington SquareSurvey Monkey 18,973 CBDMonsoon 17,764 NW First Insight 10,683 Sunset CorridorVOA - InAct 9,985 SENvoice Pay 9,446 Washington SquareVOA - Home Free 7,340 SEAlphagraphics 6,464 Sunset CorridorAir Advice 4,960 NW Cascade Enforcement 4,000 BeavertonRiver Network 3,365 CBDValentina's Home Brewed 2,575 Washington SquareReynolds Defense Firm 2,300 CBD Trestle 2,300 NEEDT 2,172 Sunset CorridorColin Black 2,094 NW IVC 2,057 NW The Outsourcing Company 1,937 CBD
The Project
The Project
Strengths
• Great location.
• Close proximity to restaurants, shops, retail and Nordstrom.
• Easy access to the MAX & Bus lines.
• Well known historic building.
• Operable Windows.
• Good natural light in most suites.
• Parking available within the building.
• Good bike parking and access into the building.
• Showers & lockers.
The Project
The Project
Weaknesses
• Stale marketing.
• Perception of lack of cool/creative space.
• Lack of the ability to open the ceiling grid.
• Dated/Traditional finishes.
The Project
The Project
Recommendations
• Complete lobby remodel quickly, including lighter tile surrounding carpet.
• New contemporary hallway sconces and ceiling tiles throughout floors with vacancy.
• Consistency of hanging lobby lights throughout building.
• New electrical face plates in the vacant suites.
• New “framing” around HVAC units in all of the vacant suites.
• New ceiling tiles in all of the vacant suites.
• Consider painting dark hardwood trim white.
• Consider replacing the dark hardwood doors throughout the vacant suites.
• Consider new brushed nickel hardware as a building standard.
• Consider replacing exterior suite entry doors with new brushed nickel hardware.
The Project
The Project
Recommendations
• Complete lobby remodel quickly.
The Project
The Project
Recommendations
• New contemporary hallway sconces and ceiling tiles throughout floors with vacancies.
The Project
The Project
Recommendations
• Consistent & contemporary lobby lights from floor to floor.
The Project
The Project
Recommendations
• New electrical face plates in the vacant suites.
The Project
The Project
Recommendations
• New “framing” around HVAC units in all of the vacant suites.
The Project
The Project
Recommendations
• New ceiling tiles in all of the vacant suites.
The Project
The Project
Recommendations
• Be willing to paint all dark hardwood trim white as desired by Tenant.
The Project
The Project
Recommendations
• Be willing to replace new doors - replacing the dark hardwood doors throughout the vacant suites.
The Project
The Project
Recommendations
• Consider new brushed nickel hardware as a building standard for interior and exterior doors.
The Project
The Project
Recommendations – Suite 210
• Consider painting wood trim to white (See suite 720).
• Spec out with new carpet (or at a minimum a small section in the suite).
• Consider replacing hardware with brushed nickel.
• Leave checkered walkway and carpet around it - will leave a cool/creative/ historic aspect to the space.
The Project
The Project
Recommendations – Suite 630
• Ensure new tiles and T-5 lights.
• Consider painting wood trim to white (See suite 720).
• Consider replacing hardware with brushed nickel.
The Project
The Project
Recommendations – Suite 720
• Shows as well as it can.
• Frame out new “discovered” window.
• Ensure new tiles and T-5 lights.
The Project
The Project
Recommendations – Suite 750
• Demo selected walls.
• Ensure new tiles and T-5 lights.
• Consider painting wood trim to white (See suite 720).
• Spec out with new carpet (or at least a section in new carpet).
• Consider replacing hardware with brushed nickel.
The Marketing
Best in Class Brokerage Services
Marketing Flyer
• Usually we do not have direct contact with the prospects. We have one 15-second opportunity to make a great impression and ultimately make the Tenant’s shortlist of spaces to tour.
• Great pictures.
• Clear and concise map.
• When possible a complete set of space plans located on the marketing flyer.
The Marketing
Best in Class Brokerage Services
Space plans
• Clear and accurate space plans.
• Formatted in our Kidder Mathews standard format.
The Marketing
Best in Class Brokerage Services
Great Broker Relations
• Our team has a consistent positive reputation throughout the brokerage community.
• Responsive.
• Driven.
• Ethical.
• We welcome you to contact other brokers within the brokerage community.
The Marketing
Best in Class Brokerage ServicesComprehensive Cost Analysis
• Cost Analysis• Procalc
The Marketing
Reenergize & Reintroduce the Building
• Broker open house walk through after completion of building upgrades.
• $100 for qualified broker tours - $50 to the prospect & $50 to the broker (The # 1 most important thing is to make the tour list!).
• Confirm a full 5% fee to the outside broker.
The Marketing
Team Prospecting
Cold Calling – Travis Parrott
• Database• Canvassing – Have each individually walked every building in the CBD.• Subgroups
The Market
Tenants in the Market
Kidder Mathews Office Group
• Our office practices group shares information to track as many requirements in the market as possible.
The Market
Vertical Emails and Completed Deals
Kidder Mathews Office Group
• Our offices practices group tracks all vertical emails to try to identify the Tenants in the market.
The Market
Landscape Maps
Specifically created by our Team, these maps help quantify blocks of space over
5,000 SF helping our team stay on top of the competition for our Landlords.
• Class A Downtown
• Class B Downtown
• Class C Downtown
• Class A Northwest Portland
• Class B & C Northwest Portland
The Market
Competition
Suite 200/210 (7,605 SF)
Director Building
Grand Stable & Carriage Building
Pacific Building
Historic US National Bank
Block
Commonwealth Building
The Market
CompetitionSuite 200/210 (7,605 SF)
• Director Building – 8,785 SF. A full floor opportunity seeking $24.00+ per SF. (NB&S)
• Grand Stable & Carriage – 7,980 SF. A full floor opportunity marketed at $24.75 per SF on the 2nd Floor. (Colliers)
• Historic US Bank Building – 9,541 SF. A full floor opportunity marketed at $25.00 per SF on the 6th Floor. (CBRE)
• Pacific Building – 6,000 -14,000 SF. A sublease full floor opportunity that is divisible marketed at $22.50 per SF. (Cushman & Wakefield)
• Commonwealth – 8,000 SF. A not so desirable suite on the 2nd floor which could be more aggressive on rate. (JLL)
• Spalding Building – Four competing suites as you know. (Colliers)
The Market
Competition
Suite 630 (3,450 SF) & 720 (3,629 SF)
Director Building
Pacific Building
Historic US National Bank
Block
620 Building
Jackson Tower
Cascade Building
The Market
CompetitionSuite 630 (3,450 SF) & 720 (3,629 SF)
• 620 Building – 2,964 SF. Nice views with three sides of glass on the 9 th floor. (JLL)
• Director Building – 3,822 SF. Located on the 6th floor. Rate not on flyer but looking to do deals at $22.00+ per SF
• Historic US Bank Block – Three suites in this range (3,573 SF, 4,438 SF, and 3,670 SF) located on the 4th floor and the 8th floor. (CBRE)
• Jackson Tower – 3,355 SF. Full floor opportunity located on the 10 th floor. Looking to do deals at $22.00-$23 .00per SF. (Kidder Mathews)
• Pacific Building – 3,555 SF. Located on the 10th floor with views of Mt. Hood marketing at $18.00-$24.00 per SF. (Gray Company)
• Cascade Building – Two suites in this size range (3,031 SF and 3,528 SF) located on floors 10 and 11. No rates marketed but looking to do deals between $19.00-$21.00 per SF. (Kidder Mathews)
The Market
Competition
Suite 750 (5,036 SF)
Director Building Pacific Building
Historic US National Bank
Block
620 Building American Bank
Building
The Market
CompetitionSuite 750 (5,036 SF)
• American Bank Building – Two suites near 6,000 SF. Located on the 5 th floor and 10th floor. Looking to do deals between $22.00-$23.00 per SF. (Kidder Mathews)
• Historic US Bank Building – Three competing suites in this range located on the 4th floor and the 6th floor. (CBRE)
• 620 Building – 5,600 SF. Located on the 10th floor and marketed between $19.50-$21.50 per SF. (JLL)
• Director Building – 4,746 SF. Located on the 5th floor. No rates marketed, but looking to do deals at $22.00+ per SF. (NB&S)
• Pacific Building – 6,000 -14,000 SF. A sublease full floor opportunity that is divisible marketed at $22.50 per SF. (Cushman & Wakefield)
The Choice
Why Team Schweitz, Parrott, Cettina...Because you deserve:
• Updated market knowledge
• Solid broker relations
• Deal making
• Trust
• ENERGY
We’re Ready To Go To Work!
