TENANT REPRESENTATION SERVICES
www.tower-cre.com
EXPERIENCE YOU CAN TRUST
Tower Commercial Real Estate is a full service commercial real estate brokerage firm focused on the diverse, complex needs of the commercial real estate industry. We operate across the Tri-County region of South Florida; Miami-Dade, Broward and Palm Beach counties. Our professionals have in-depth market knowledge and transaction experience, thus providing our clients with solutions that make sense for their business. Our priority is your success – lowering real estate costs while maximizing workplace flexibility and productivity. We have a long track record representing both Landlords and Tenants, our professionals understand what motivates each side in a lease negotiation. If you are not doing business in an effective space, you could be missing out on important opportunities, such as having additional space to hire more employees, being closely located to your target market or having a location near important vendors or public transportation. Each of these factors could directly influence your potential revenue and the cost of doing business. Are you getting the best deal on your lease rate? Comparing lease rates can be confusing since most properties have different leasing structures. Having a commercial real estate agent compare lease rates with these factors in mind will help you with an ‘apples to apples’ comparison.
TENANT REPRESENTATION
LET TOWER CRE HELP YOU FIND THE BEST SPACE FOR YOUR BUSINESS…
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Long and Short Term Strategic Planning
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Cost Analysis
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Site Selection
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Market Analysis
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Financial Analysis and Comparisons
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Survey and Tour of Qualified Properties
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Lease Restructure
SIGNIFICANT BENEFITS
Our professionals provide clients with detailed market intelligence, making every recommendation a local one. Our brokers’ experience, market knowledge, and business acumen results in significant benefits for clients, including: • Maximum value • Best price
• Uncovering of hidden opportunities
• Alignment of real estate with business objectives • Value protection of the client’s investment
SCOTT ALLEN
SENIOR MANAGING DIRECTOR Scott Allen is Senior Managing Director at Tower Commercial Real Estate, a full service commercial real estate brokerage firm in South Florida. Mr. Allen brings 23 years of commercial real estate experience to Tower Commercial. Throughout his tenure, he has exclusively focused on Tenant Representation for clients throughout the Country and South Florida. Mr. Allen has focused on mid-to-large cap corporations, law firms, financial service firms, healthcare, municipalities, banks and technology companies. Mr. Allen is well versed in all facets of a transaction including leasing, sales, build to suits, acquisition and disposition of assets for his clients. Throughout his career Mr. Allen has represented multiple national and local clients. Before joining Tower Commercial Real Estate, Scott was associated with CBRE since 1996, and represented clients including Spherion Staffing, VITAS Healthcare, City of Fort Lauderdale, Citibank and AutoNation.
ROB FOSTER ASSOCIATE
Rob Foster is an Associate at Tower Commercial Real Estate’s Tenant Representation Group in South Florida. Mr. Foster adds value to his clients’ real estate objectives through the full range of services he offers, including contract negotiation, site selection, disposition and business development. Mr. Foster prides himself on having a detailed understanding of his clients’ operations, objectives and risk management structures, enabling him to develop and execute real estate strategies that achieve the most favorable results. He brings his background in business, strategic thought, experience and strong analytical skills to the negotiation process. Prior to joining Tower Commercial Real Estate, Mr. Foster served as a Sales Associate at American Properties Realty, Inc. where he individually negotiated more than 100,000 square feet in lease transactions totaling over $10 million dollars in lease consideration within his first year.
TOWER COMMERCIAL REAL ESTATE TENANT REP BROKERS PUT YOUR COMPANY’S INTEREST FIRST
CONSTANCE D. THOMAS, CCIM SENIOR DIRECTOR
Constance D. Thomas is a Senior Director at Tower Commercial Real Estate, a full service commercial real estate brokerage firm in South Florida. Ms. Thomas is an office leasing and investment sales specialist in Palm Beach County. She benefits from more than 20 years of industry experience, having participated in notable transactions with MetLife, Aetna Life Insurance, FineMark Bank, Regent Bank, Chilton Investment Advisors, Jos A Bank, Wilmington Trust, Colonial Bank, Harris Bank, First Union, Wachovia and SunTrust Bank, among others. By applying client-centered strategies to identify numerous areas of leverage, Ms. Thomas has secured millions of dollars in occupancy cost savings and lease enhancements in a wide variety of lease and ownership structures. Ms. Thomas was previously a Senior Associate with Touchstone Webb Realty Company, where she was responsible for strategizing on all facets of the business including the leasing, marketing, brokerage operations, tenant and capital improvement budgeting to enhance leasing metrics for a diverse portfolio of office, medical office and retail properties located throughout Palm Beach County. Ms. Thomas has also served as a Broker/Associate with WGCompass Realty Partners providing leasing, consulting, and disposition services to financial institutions, regional tenants, and local property owners.
MIKE MOORE
DIRECTOR OF BUSINESS DEVELOPMENT Mike Moore is a Director of Business Development at Tower Commercial Real Estate’s Tenant Representation Group in South Florida. Mr. Moore adds value to his clients’ real estate objectives through the full range of services, including contract negotiation, site selection, disposition and business development. His career in consulting has focused on profit and performance improvement by showing companies how to fine tune the power of their people, processes, technology and infrastructure to achieve their business strategies. He has also led clients in conducting business strategy sessions and management retreats to analyze current goals, objectives and strategies; then help the team to challenge these to focus on value to stakeholders and customers. For over 20 years, Mr. Moore has led and created successful teams of professionals in targeting clients and building ‘trusted advisor’ relationships with C-level executives. He thrives on helping clients solve their problems and being part of a professional organization that has a team culture and is focused on bringing value and reducing risk for clients. Prior to joining Tower Commercial Real Estate, Mr. Moore served as a Partner with Deloitte & Touche, during his 22 year career as a Partner, he served hundreds of clients throughout the Southeastern United States, the Caribbean and Latin America. Mr. Moore is third generation in his family in the real estate industry.
VAN WATSON ASSOCIATE
As an Associate for Tower Commercial Real Estate, Van Watson specializes in Tenant Representation and new business development in South Florida, with a focus on Broward, and Palm Beach County. He is responsible for advising clients on their facility needs. His duties include procuring new business assignments and managing facility acquisitions and dispositions for tenants. Mr. Watson is able to analyze a client’s current and future business operations to implement a successful corporate real estate strategy. With his financial experience and background, Mr. Watson provides his clients with insight into the financial impact occupancy scenarios can have on their bottom lines. Prior to joining Tower Commercial Real Estate, Mr. Watson served as Assistant Property Manager at Transwestern where he managed 110 Tower, a Class A, 30-story building in the central business district of Ft. Lauderdale. He assisted in the leasing efforts, capital tracking of a multi-million dollar renovation and capital budget.
TENANT ADVISORY SERVICES PROCESS ANALYSIS Current Situation • Existing lease expiration, renewal notification dates, sublease & cancellation rights, etc. Evaluate Requirements • Space needs: Current & future
• Location: Clients, suppliers, employees, transportation, etc. • Telecommunications & data
• Time Frames: Term, renewal options, occupancy date, etc. • Preliminary Budget
Select Team • Space planner, architect, attorney, contractor, moving company, etc. cancellation rights, etc.
1 MONTH
IDENTIFY ALTERNATIVES
Market Overview • Supply & demand, vacancy, absorption, trends, recent deals, etc. Market Survey • Identification of all possible alternatives • Preliminary report of alternatives
• Selection of alternatives to be targeted for proposals
Request for Proposals • Issue tenant-friendly RFP requiring standardized response. • Business terms, work letter, floor plans, allowances, time frames, etc. • Definite response date
1 TO 2 MONTHS
EVALUATION
NEGOTIATION
Physical Analysis • Quality of construction, finishes, common areas, floor size, layout, views, security, adaptability
Competitive Negotiation • Identification of top two or three alternatives
• Mechanical, electrical and plumbing systems, data and telecommunication
• Amenities, parking, access, identity, transportation, restaurants, lodging, etc. • Building management.
Financial Analysis • Rental rates, escalations, concessions, improvement allowance, operating expenses, etc. • Expansions, renewals, deposits, guarantees, etc.
1 TO 2 MONTHS
• Preliminary space plans
• Request for final & best proposals • Selection of best alternative
• Negotiation of individual business & legal terms • Lease review by attorney
Final Management Approval Lease Execution
2 MONTHS EXECUTION Design • Landlord’s architect prepares working drawings. Review for compliance with lease terms. • Value engineering
Ordering • Furniture, telephone, computers, equipment
Construction • Permits, construction monitoring, walkthroughs, punch list Move • Coordinate furniture and equipment movers • Data and telecommunication providers • Computer systems
2 TO 6 MONTHS TOTAL TIME: 7 TO 12 MONTHS
WHY USE A TENANT REP BROKER SAVES YOU MONEY
An experienced Tenant Rep Broker will be able to most effectively negotiate the economic terms of your deal. Broker commission is one of the top reasons that companies choose not to use a Tenant Rep Broker. Businesses seldom have to pay out-of-pocket for this commission. Landlords pay a commission to their brokers and require them to share that fee with the brokers that represent the tenants.
SAVES YOU TIME
The list of properties available and their favourability with respect to your business’s best market location can seem overwhelming. In addition to the heavy investment of time in completing paperwork and making offers. An experienced Tenant Rep Broker will streamline the leasing process – from strategic site evaluation, market analysis, comparative site analysis, Letter of Intent (LOI), lease negotiation, architect, contractor and attorney.
PUTS YOUR INTEREST FIRST
Listing brokers are obliged to protect the landlord’s interests. It is extremely difficult for listing brokers to truly negotiate in a Tenant’s best interest. An experienced Tenant Rep Broker will work for your company’s interests at every stage of the process and negotiate the best possible deal for your company’s situation and needs.
FINDS THE RIGHT LOCATION FOR YOU
An experienced Tenant Rep Broker will examine your objectives and concerns to sort through the preliminary options and begin a detailed evaluation to find a great site for your specific kind of business.
GIVES YOU MARKET KNOWLEDGE
An experienced Tenant Rep Broker will look beyond the rental rates, terms and conditions. Knowing the local market can help companies make an informed real estate decision.
CASE STUDIES Mager Law Group
Professional Association | Law Firm
THE CHALLENGE
Cigna had been in Sawgrass Corporate Park for 8 years with 24 months from lease expiration date and wanted to reduce their occupancy cost immediately and simultaneously not disrupt the existing operation.
THE SOLUTION
Through aggressive negotiations and uncovering several stalking horses, we were able to show Cigna’s existing Landlord we had several Landlords in Sawgrass Corporate Park that were willing to offer aggressive packages to attract a Tenant like Cigna. With the possible alternatives, we were able to renew Cigna in place and immediately reduce their remaining rent obligation by $760K.
TEAM ROLES
Site Selection, Financial Analysis, Negotiation and Execution
Fort Lauderdale-based Mager Law Group, P.A. (MLG) focuses on professional liability defense, including the defense of long-term care facilities, as well as complex appeals. Mager Law Group was established with the objective of always handling cases with exceptional prudence. Their goal is at all times to deliver value added legal services. Consequently, their lawyers practice with a different perspective. They look for the most streamlined path to resolution; never deviating from the clients’ business goal but at all times remaining mindful of the reality of the case
THE CHALLENGE
MLG was a small firm operating out of executive suites for the first twelve months of the firms’ existence. During this period, the firm experienced tremendous growth, taking down every available office the executive suite operator would lease out. This was proving to be an inefficient and costly scenario to the firm.
THE SOLUTION
In early 2004, We were engaged to solve their long-term growth problem. After extensive interviews with the partners, we established the firm did not need to be in a more expensive downtown location. With this information, we conducted a survey of all opportunities in Suburban Broward County. Our goal was to find a building that could accommodate the firm immediately and handle growth up to 25K square feet over the next 24 months. The analysis concluded a suburban office building with all of the amenities of a downtown office building, combined with an aggressive rental rate and free rent to offset moving and start up costs was the solution.
THE BENEFIT
Within a three-month period, MLG was able to relocate out of an inefficient, costly executive suite operation, and immediately into a permanent location accommodating both financial and growth parameters.
CASE STUDIES Gordon Hargrove & James Professional Association | Law Firm South Florida based Applica Incorporated is a diversified manufacturer and marketer of a wide range of small appliances for use in and outside the home. Through its operating subsidiary, Applica Consumer Products, Inc., Applica markets products under licensed brand names such as Black & Decker, company-owned brand names such as Windmere, Littermaid, Belson and private label brand names, primarily in North America, Latin America and the Caribbean.
THE CHALLENGE
Applica owned and operated a 250,000 square foot office/ warehouse facility in Miami Lakes when they decided to outsource their warehousing function. When the announcement was made, the building immediately went under contract for sale with no plans for their office component of their operations. Within a nine-month period, Applica needed to relocate 350 employees without disrupting their business operations. Due to their time frame, they were unable to entertain a new building or build-to-suit scenario.
THE SOLUTION
We delivered a site selection study that identified a number of viable candidate markets and conducted tours of the finalists. The winner was the City of Miramar in Southwest Broward County. Miramar was within 15 minutes of their existing location and could immediately accommodate the requirement. Applica selected a warehouse building that had 110,000 square feet of existing office space. This meant Applica could remain in close proximity to their existing location and could get up and running quickly, one of their key objectives. In addition, We were able to negotiate an economic incentive package from the City of Miramar totaling $250K.
THE BENEFIT
While being challenged with timing and location, Applica was able to accomplish both goals with a cost effective leasing alternative in a location where zero employees were lost.
Gordon Hargrove & James, P.A. (GHJ) is a leading Florida law firm, focusing in a variety of civil practice areas, with offices in Fort Lauderdale and Orlando. The Firm serves clients throughout the State of Florida and the Southeastern United States. Their clients include national and international Fortune 500 companies, individuals, charities, and pro bono assignments.
THE CHALLENGE
GHJ occupied and had maxed out their 20,000 square foot office in downtown Ft Lauderdale. In addition, they preferred to move out of the building, and had a lease that did not expire for 18 months. The challenge for the firm was how to address their growing space requirements without expanding within the building on another long-term lease.
THE SOLUTION
As GHJ did not need to be in downtown Ft Lauderdale and due to the current market conditions, within six months, We were able to identify alternative buildings and relocate GHJ out of downtown Ft Lauderdale into a comparable Class A building while overcoming all of their challenges. Due to the firms evolving business model, they were no longer required to have a downtown address, so we were able to relocate the firm to a comparable building outside of the CBD. With the relocation out of the CBD and identifying a motivated Landlord seeking credit tenants, We were able to immediately reduce their occupancy cost by 25% and not incur any double rent as their new Landlord offered free rent beyond GHJ’s existing lease obligation. In addition, since they moved out of the CBD, GHJ realized a significant savings as there will not be a charge for the parking garage in the new facility. GHJ also realized some economies by relocating to a space of similar square footage as their previous space, but were able to house approximately 10% more staff due to the efficiency of the building and floor plate. In addition,
THE BENEFIT
While being challenged with a remaining lease obligation and lack of expansion space, GHJ was able to immediately relocate to an alternative building and recognize a cost savings annually throughout their lease term and occupy a floor plate that can accommodate growth in the future
THE CHALLENGE
Intermedia Communications, Inc., a fast growing CLEC headquartered in Tampa, Florida had experienced tremendous growth since 1996. We were charged with assisting them in the acquisition of space in many different markets across the United States as they expanded their network and sales/ service operations. Property types included office and warehouse space, call centers, data centers, switches, and a build-to-suit world headquarters facility. We acted as Intermedia’s outsourced real estate department in an extremely close working relationship. An alliance partner was needed rather than a “vendor”.
THE SOLUTION
The our service delivery platform allowed Intermedia to expand while receiving seamless service between the account management team and local offices. As part of the account management team, a full-time account executive was on-site at Intermedia to provide unparalleled service. This allowed Intermedia to focus on their core competency and better compete in the hyper-competitive communications industry where speed to market is critical. As a result, over 2,500,000 square feet was acquired in 65 different cities, including four (4) call centers from 40,000 – 120,000 square feet each. The cornerstone was a 800,000 square foot build-to-suit world headquarters facility in Tampa, Florida, which consolidated several existing operations. Intermedia estimates a net savings of $50,000,000 over the life of the lease when churn, fitment and productivity costs are included for this facility.
Lucent Technologies designs and delivers the systems, services and software that drive next-generation communications networks. Backed by Bell Labs research and development, Lucent uses its strengths in mobility, optical, software, data and voice networking technologies, as well as services, to create new revenue-generating opportunities for its customers, while enabling them to quickly deploy and better manage their networks. Lucent’s customer base includes communications service providers, governments and enterprises worldwide.
THE CHALLENGE
In 1999, Lucent built a 240,000 square foot regional headquarters for their Caribbean & Latin American division (CALA) in Miramar, FL. After the technology bubble burst, in 2002 Lucent engaged us in South Florida to dispose of 150,000 square feet, but did not want to break up the spaces into any smaller than 30,000 square feet. The market at the time also had a vacancy of greater than17%.
THE SOLUTION
We put together a team to aggressively canvass Broward County and Western Miami-Dade counties identifying all tenants that met our parameters. Within 24 months we were able to backfill 100% of the available space to three different tenants. In addition, all of the lease terms were structured to expire on a date that Lucent has a termination right for the remaining five years of the term.
THE BENEFIT
Lucent is able to continue to occupy 90,000 square feet in the building with only three additional tenants to minimize the disruption to Lucent’s business. We were able to backfill 100% of the vacant space with lease expirations to coincide with a Lucent termination right. Through the subleasing of the excess space, Lucent will be able to recover more than $20M in lease consideration.
PAST AND CURRENT CLIENTS South Florida Market
Gordon Hargrove & James Professional Association | Law Firm
Mager Law Group
Professional Association | Law Firm
CLIENT FOCUSED RESULTS DRIVEN
SCOTT ALLEN Senior Managing Director sallen@tower-cre.com CONSTANCE D. THOMAS, CCIM Senior Director cthomas@tower-cre.com JOODY ANDRE Marketing Director jandre@tower-cre.com ROB FOSTER Associate rfoster@tower-cre.com VAN WATSON Associate vwatson@tower-cre.com
TOWER COMMERCIAL REAL ESTATE MIAMI 1 SE 3rd Avenue, Suite 1010 Miami, FL 33131 305-400-0760 FORT LAUDERDALE 100 SE 3rd Avenue, 10th Floor Fort Lauderdale, FL 33394 954-628-5355 BOCA RATON 2225 Glades Road, Suite 124A Boca Raton, FL 33431 561-572-9887 5200 Town Center Circle, Suite 105 Boca Raton, FL 33486 561-572-9887 WEST PALM BEACH 515 N Flagler Drive, Suite 802 West Palm Beach, FL 33401 561-572-9887
www.tower-cre.com