Client Advisory Services

a presentation of
Client Advisory Services
prepared for
July 24, 2009
Commerce CRG
3800 Howard Hughes Parkway, Suite 1200
Las Vegas, NV 89169
(702) 796-7900 • Fax (702) 796-7920
prepared by
Michael R. Dunn, CCIM, SIOR
Carolyn Curtis, CCIM
“Commerce CRG is a regional real estate firm with a national and
international affiliation with Cushman & Wakefield, an acclaimed
New York City based, privately owned, company founded in 1917,
dedicated first and foremost to our clients. With the industry’s
premier professionals, and industry leading technology, our
mission is to exceed our clients’ expectations through service
excellence.”
Table of Contents
A Proposal for Client Advisory Services
Ta b l e o f C o n t e n t s
1Situation overview
A. Lease vs purchase considerations
B. SAMPLE LEASE VS PURCHASE ANALYSIS
.
c. cHECKLIST FOR OFFICE LEASES
2. Market overview
3. Client advisory services process
4.Benefits to state bar of Nevada
5. Compensation
6.Project team
a. ABOUT CCIM
b. About SIOR
c. INDUSTRY PARTNERS
7. Relevant experience
8.commerce crg - who are we?
a.cushman & wakefield alliance office
9. our promise
.
SI T UAT ION
OVE RVIEW
A Proposal for Client Advisory Services
S i t u at i o n Ov e rv i e w
• State Bar of Nevada is beginning the interview process to engage a commercial office broker to assist the State Bar in the procurement of a new Las Vegas headquarters.
• State Bar of Nevada currently occupies property at 600 E. Charleston Blvd, Las Vegas, NV 89104.
• State Bar of Nevada acquired the property in 1997, and owns the property free and clear of any debt.
• State Bar of Nevada has outgrown the property and has found other interests to lease, or purchase, the property.
• State Bar of Nevada desires to relocate in the near term by either leasing new offices or by purchasing an office building.
• State Bar of Nevada anticipates a square footage requirement in the range of 20 - 25K square feet.
A Proposal for Client Advisory Services
A Proposal for Client Advisory Services
S i t u at i o n Ov e rv i e w
l e a s e v s p u rc h a s e c o n s i d e r at i o n s
The key point to remember is that each business brings its own unique situations
and concerns to the table in deciding whether it makes more sense to lease office
space or to purchase an office building. The answer will be different for each business owner.
Following are a just a few pros and cons to consider in arriving at the best decision
for the State Bar of Nevada:
Pros of owning the property:
• Asset appreciation
• Fixed overhead costs
• Potential to sublet all or a portion of the building
• Income if subletting
• Pride of ownership
• Tax factor
Cons of owning the property:
• Up-front costs, i.e. down payment, closing costs, remodel costs
• Lack of flexibility in square footage needs
• Management/maintenance issues
Pros of leasing the property:
• Flexibility
• Fewer responsibilities
• Deductible payments
• Negotiable lease rates
• Free up working capital
• More time to focus on running the business
Cons of leasing the property:
• No equity
• Variable overhead costs
• No pride of ownership
A Proposal for Client Advisory Services
s i t u at i o n ov e rv i e w
Checklist for office leases
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Space
Permitted uses of the Premises
Primary lease term
Lease rates
Common area maintenance, HVAC, and operating costs
Tenant Improvements
Repairs and replacements
Utilities
Assignment and subletting
Subordination and attornment
Destruction
Indemnity and disclaimer
Default
Landlord’s warranties
Option to renew
Right of first refusal or first offer for additional space
Security deposit
Guaranty
Mortgages
Free rent/other concessions
Compliance with law
Insurance
Rules and regulations for the building
Rights of entry
Signage
Parking
Market
Ov e rv i e w
A Proposal for Client Advisory Services
m a r k e t Ov e rv i e w | L A S V E G A S E C O N O M Y
The Las Vegas economy continues to be impacted by downturns in all major sectors,
including gaming, construction, financial and real estate, however we may be starting
to show a sign towards more positive numbers. The latest tourism figures (June 2009)
suggest visitor volumes are still down by 2.89% from the same period of the prior
year, however are up from the 9.8% change at the beginning of the year. The amount
of discretionary spending by tourists also appears to be moving to more positive signs
as the average gaming revenues on the Las Vegas Strip were down 13.56% but again
up from the 14.8% at the beginning of the year. All of these factors point toward a
cautionary, but also ready to start spending, stage in consumer demand and market
recovery.
From a commercial perspective, the supply-demand imbalance of office product,
which started in 2008, has produced substantial levels of new product that entered
the market despite elevated vacancies. Half way through 2009, developers have now
reduced the number of new office buildings under development based on the current
fundamentals of limited to / no financing, high vacancy and greatly reduced tenant
demand. The new issue is consumer demand to keep businesses running and staying in
business. A similar situation has prevailed in the commercial retail sector. That said, a
number of retail closures resulted in higher-than-average vacancies while consumers
are feeling the pinch associated with price declines in their homes. The industrial
sector has performed similarly, yet remains more stable than the office and retail
sectors. Limited development in the industrial sector has kept vacancy rates in line
with historical averages.
While fundamentals in the market remain challenged, market dynamics in the global
financial system create an added level of uncertainty and unpredictability. From a
global perspective, the latest crisis in the financial markets has impacted liquidity and
heightened concerns about accessibility to capital going forward. While government
intervention has occurred, the full effect of these assistance programs remains
somewhat uncertain. The financial crisis has impacted the viability of major projects and
has banks struggling with liquidity issues. The positive impacts associated with major
resort openings in late 2008 and well into 2009 are difficult to quantify. Major gaming
operators are likely to increase efficiencies to meet the requirements of reduced
demand. Employment growth is critical to future economic growth and the return
to a healthy commercial market; which may take several years to accomplish. It is
important to note that Las Vegas has weathered a number of economic downturns and
has responded with great enthusiasm. This down cycle will likely respond similarly; only
time will tell!
A Proposal for Client Advisory Services
m a r k e t Ov e rv i e w | o ffic e m a rk e t
Office Market Indicators
Current Vacancy
20.11%
Lease Rates
$2.12
Net Absorption*
(236,335)
Construction
1.4 M
Change Since
2Q09
2Q08
*The arrows are trend indicators over the specified time period and do not represent a positive or negative value. (e.g.,
absorption could be negative but still represent a positive trend over a specified period.)
AT A GLANCE
• Overall vacancy rates showed an increase from 19.83% in 1st quarter 2009 to the current rate of 20.11% at the end of 2nd quarter 2009. This rate is escalating from a year ago when rates were around 16.7%.
• Construction activity slowed with 1.46 million square feet (msf) of office space currently under construction. Major projects moving forward include: Centennial Hills Center, in the Northwest submarket with approximately 283,700 square feet (sf) of office space. Another major project that just finished construction was the Rainbow Sunset Pavilion in the southwest area with 226,140 sf of office space.
• Average rental rates are at lower levels than we witnessed a year ago at a current rate of $2.12 per square foot per month, full service growth (psf/mo/FSG). This is a also a drop from last quarter rates of $2.23 psf/mo/FSG
• Economic outlook is still going to be a growing concern for both landlords and tenants as tighter credit terms, rising inflation and a weak job market continue to affect the Las Vegas area.
A Proposal for Client Advisory Services
m a r k e t Ov e rv i e w | o ffic e m a rk e t
Overview
By the beginning of 2009, the Las Vegas commercial office market continued to report
upward movement in vacancies, while overall demand slowed. The latest market
performance was impacted by several factors, including economic weakness locally
and nationally, as well as volatility in the global financial markets. Professional office
tenants have been impacted by a contracting economy, continued declines in housing
values, raising unemployment and ultimately impacting consumer spending and
pullback within the tourism industry.
Vacancies
Valley-wide average vacancies continued to escalate as the supply-side of the
equation, combined with declining demand and contraction in real estate related
industries, continues to impact the competitive landscape. The office market
vacancies reached 20.11% at the end of the 2nd quarter, which was higher than the
19.83% reported one quarter ago (Q1 2009) and 3.4 points higher than the 16.7%
reported one year ago (Q2 2008). Sublease space also continues to be on the rise
with currently 896,110 sf (2% of the total market) of available sublease space. Office
submarkets reporting the highest level of availability included emerging submarkets
with the newest supply of buildings such as the Airport (24.2%), Southeast (23.6%),
and Southwest (27.58%) submarkets. The high vacancy rates in these submarkets
are a result of new buildings coming on line with little or no pre-leasing activity,
combined with lease concessions, defaults and downsizing which is causing vacancy
to rise. Below-market-average vacancies were noted in the Downtown (12.07%),
West (17.57%), Central West (14.91%).
A Proposal for Client Advisory Services
m a r k e t Ov e rv i e w | o ffic e m a rk e t
Pricing (Average Asking Rents)
The latest performance contributed to price erosion as landlords and building owners
compete for a limited number of office tenants. By 2nd quarter, the market reported
average asking rents of $2.12 sf/FSG, a drop from the $2.23 sf/FSG from the previous
quarter. Elevated tenant improvement allowances and free rent concessions are impacting
returns for landlords, investors and ultimately lenders. We expect this trend to continue
throughout the majority of 2009 as inventory levels remain elevated.
Average rents in the Class A segment reached $3.02 sf/FSG with newer, high-end buildings
targeting a price point well above the average. Mid-range product (Class B) reported
average asking rents of $1.80 sf/FSG, which was below the valley-wide average. Pricing for
Class C properties decreased again this quarter to $1.54 sf/FSG. Downtown ($2.42 sf/
FSG), Central East ($2.15 sf/FSG) and Airport ($2.00 sf/FSG) submarkets show the highest
lease rates, while Central West ($1.88 sf/FSG), Northwest ($1.94 sf/FSG) and North
($1.56 sf/FSG) submarkets show the lowest average lease rates. Please Note: the average
asking rates do not take inconsideration free rent & rental concession.
* Full Service Gross (FSG): A lease requiring the owner to pay all operating expenses, such as cleaning, maintenance and
repairs, utilities, insurance and ad valorem taxes.
New Supply (Completions) and Market Demand
Construction activity slowed with 1.46 million square feet of office space currently under
construction. Major projects moving forward include: Centennial Hills Center, in the
Northwest submarket with approximately 283,700 square feet (sf) of office space.
At the end of 2nd quarter, net absorption ended with a negative 236,335 sf. This is due
to the continued decline in market demand combined with new buildings added to the
inventory during the quarter. The hardest hit areas showing negative absorption was in
the West, Central East and Airport submarkets.
Outlook
The market will continue to be impacted by cautious consumer/companies activity, causing
vacancies to remain elevated and most likely continue to increase. Near-term contraction
within the employment market will also have an impact on office market demand. The
effect of extended lease up periods and softening economic conditions will contribute
to increased repossession activity by lenders that will result in further price adjustments.
Beginning in the summer of 2008 the number of commercial foreclosures has increased
monthly, we expect this trend to continue for the foreseeable future as we work our way
thru this deleveraging cycle. Resort projects entering the market in 2009 will partially
offset recent efforts to increase efficiency, but will likely result in positive job growth
following the completion of the $9.2-billion CityCenter project in late-2009, which we
hope will stimulate greater office demand.
A Proposal for Client Advisory Services
m a r k e t Ov e rv i e w | o ffic e m a rk e t
Performance by Product Type & Classification
While broader market trends are clear, by providing basic break out of the office
product types, it is also important to understand the performance of detailed key
sectors within the commercial office market. At Commerce CRG, we know the
importance of updating the classification of buildings as the market grows older.
We have taken the steps this quarter to start with a new classification process. As
a team, we have separated and reclassified all office buildings in a “Tier” format. The
Tier format will separate out classes in a Top Tier Class and Lower Tier Class. This
will help our clients to better understand, for example, the number of “real” Class A
buildings that the Las Vegas area has that would qualify as Class A in other markets
such as Los Angeles and New York. While also taking a look at lower tier Class A
buildings, buildings that is what the Las Vegas market considers Class A, but would
not qualify as Class A in Los Angeles or New York.
The following is the Commerce CRG 2nd Quarter Market report which highlights
market conditions by building type and classification.
Las Vegas, Nevada | Commerce CRG
Second Quarter 2009
A Proposal for Client Advisory Services
A Proposal for Client Advisory Services
G l o s s a ry | m a j o r m a rk e t d e fi n iti o n s
Top Tier Class A: Describes the highest quality office space locally available. The architecture of Class A
office structures always prioritizes design and visual appeal over cost, and sometimes over practicality - a
Class A building can be considered a monument and a testament to the success and power of its tenants.
Class A: Generally 100,000 sq. ft. or larger (five or more floors), concrete and steel construction, built since
1980, business /support amenities, strong identifiable location/access. Most prestigious buildings competing
for premier office users with above average rents for the area. Buildings have high quality standard finishes,
state-of-the-art systems, exceptional accessibility and suggest a definitive market presence.
Lower Tier Class A: Investment – grade property, well located and offering high-quality space. Good design,
above-average workmanship and materials. Well maintained and managed, exceptionally so if an older
building. Quality tenants. Building(s) location considered premier with high market perception standards.
Typically higher rent with excellent building finishes, multiple building amenities and high efficiencies. Class A
will have 3 or more floors, concrete and steel construction.
Top Tier Class B: Building(s) location considered excellent with medium market perception standards.
Renovated and in good locations. Typically lower rent than Class “A” with good building finishes, some
building amenities and medium efficiencies. Built after 2000. Concrete and steel construction.
Lower Tier Class B: Buildings competing for a wide range of office users with average rents for the
area. Building finishes are fair to good for the area and systems are adequate, but the buildings do not
compete with class A at the same price. They are less appealing to tenants than Class A properties, and
may be deficient in a number of respects including floor plans, condition and facilities. They lack prestige
and must depend chiefly on a lower price to attract tenants and investors. Such buildings offer utilitarian
space without special attractions and have ordinary design. Built before 2000. Wood frame and tilt wall
construction.
Top Tier Class C: A classification used to describe buildings that generally qualify as no-frills, older
buildings that offer basic space and command lower rents or sale prices compared to other buildings in the
same market. Such buildings typically have below-average maintenance and management, and could have
mixed or low tenant prestige, inferior elevators, and/or mechanical/electrical systems. These buildings lack
prestige and must depend chiefly on a lower price to attract tenants and investors. 15 to 25 years old. Wood
frame and tilt wall construction. Smaller buildings, Garden Style design.
Lower Tier Class C: Older, un-renovated and of any size in average to fair condition. Basic Space in a nofrills older building. Below –Average maintenance and management. Mixed or low tenant prestige. Inferior
elevators and mechanical/ electrical systems. Class C Buildings are typically 15 to 25 years old but are
maintaining steady occupancy.
Medical: A building is considered medical if greater than 55% of its rentable area is occupied by medical
tenants.
Full Service Gross (FSG): A lease requiring the owner to pay all operating expenses, such as cleaning,
maintenance and repairs, utilities, insurance and ad valorem taxes.
A Proposal for Client Advisory Services
LAS VEGAS | OFFICE SUBMARKET MAP
C l i e n t a dv i s o ry
s e rv i c e s p r o c e s s
A Proposal for Client Advisory Services
c l i e n t a dv i s o ry s e rv i c e s p r o c e s s
The Tenant/Buyer representation process is accomplished thorough a strategic lease or
purchase mitigation process that will include evaluating all components of leasing verses
purchasing a new building. This mitigation strategy can be accomplished by following the
representation process:
Definition of
Requirements
and Team
Selection
1
2
Situation
Analysis and
Strategy
Development
Situational Analysis
• Refine understanding of
client’s business, spatial,
and financial requirements.
•
Scrutinize requirement.
•
Ascertain likely
components of optimal
solution.
•
Define specialized
expertise needed.
•
•
Assemble team.
Strategy Development
• Create baseline financial
analysis.
•
Prepare summary analysis
and report.
Market
Survey
3
Prepare preliminary budgets
for relocation scenarios.
•
Analyze alternatives against
baseline financial analysis.
•
Analyze alternative
transaction structures.
•
Lease verses purchase
•
Quantifying potential
government incentives.
•
Prepare documentation
of strategy and criteria for
requirements.
Negotiations
5
6
Follow-up
Service and
Ongoing
Maintenance
•
Conduct comprehensive
market survey.
Tour / Request for Proposal
• Preview options.
•
Formulate negotiation
strategies.
•
Prepare and maintain
lease abstract.
•
Analyze prevailing
market conditions and
forecasts.
•
Conduct tours of the most
qualified option.
•
Make final
recommendation.
•
•
Match potential
facilities with Client’s
requirements.
•
Prepare and issue RFP./
LOI
•
Present recommendation
to management.
Prepare transaction
summary book and valueadded summary.
•
•
Draft letter of intent.
Prepare critical date
report.
•
Provide Client with the
final, negotiated business
terms.
•
Monitor critical dates and
notify Client.
•
•
Review lease or purchase
terms and conditions with
Client.
Annually review escalation
calculations.
•
Negotiate work letter.
•
Assist legal counsel in
negotiating final lease or
purchase agreement.
Identify alternative location
scenarios.
•
4
Alternative
Site
Qualification
and Selection
Proposal Analysis
• Evaluate proposals.
•
Present counter proposals.
•
Perform financial analysis
of each option.
•
Perform in-depth financial
analyses of short list.
DELIVERABLES
Written outline of Client
objectvtives and goals.
Situation report, strategy
and criteria documentation,
baseline financial analysis,
initial scenario financial
analyses, transaction structure
analysis, and recommendation
for evolving needs.
Market survey book of
alternatives locations,
market analyses, summary
of alternatives, location
map of alternatives, and
building fact sheet for
alternatives.
Tour book, short list
of alternatives, RFP;
physical, qualitative, and
financial analyses; counter
proposals.
Letter of intent and lease
and purchase document
with comments.
Transaction summary
book, lease abstract,
or purchased building
abstract.
B e n e f i t s TO
A Proposal for Client Advisory Services
B e n e f i t s TO
• Proven Tested Experience
A team of veteran professionals dedicated to achieving our clients objectives.
• Maximum Value
Tenant/Buyer Advisory Representation approach leads to the most costeffective, flexible, and functional occupancy solution.
• Optimum Economic Benefits
Orchestration of competition among Landlords and or Sellers, will result in the
most competitive offer.
• Documented Transaction History to Support Key Decision Makers
A transaction tracking process of all pertinent history that eliminates, if any,
management, board of directors, or any sort of outside speculation.
• Alignment of Real Estate with Business Objectives
State Bar of Nevada will arrive at the best business decision, meeting or
exceeding all fiscal, workforce, and operational objectives.
• Protection of the Value of State Bar of Nevada’s Investment
Market research that can provide up to date market information and leasehold
data, to maximize State Bar of Nevada’s leverage in the market.
• Safeguard for State Bar of Nevada’s Interests
Our sole commitment is to our clients. We negotiate terms and conditions
which are in the best interest of our clients under strict confidentiality.
C o m p e n s at i o n
A Proposal for Client Advisory Services
C o m p e n s at i o n
CommerceCRG’s fees for the Client Advisory Services, including tenant/
buyer representation conducted on behalf of the State Bar of Nevada, will
be based on 5% of the total lease obligation for years 1-5 and 2.5% for any
remaining term.
A purchase compensation fee can range from 2% to 5% of the total sales
price.
All fees earned for Client Advisory Services are typically paid by the
landlord/or seller and should not result in a direct cost to the State Bar of
Nevada.
Should the State Bar of Nevada be interested in pursuing a property that
has been foreclosed upon, a property that is not being actively marketed
for sale, or an insistent seller, the financial institution with the foreclosed
property, or the individual seller, may insist that the buyer compensate their
representatives directly. Under these circumstances, the buyer would be
responsible for the Client Advisory Services fee.
p r o j e ct t e a m
Michael R Dunn, CCIM, SIOR Senior Office Director
tNEVOO!DPNNFSDFDSHDPN
Michael began his career in commercial real estate in 1979. As a 22 year resident of Las Vegas,
he joined Commerce CRG/Cushman & Wakefield in May 2003 to lead its Office Properties
Division.
With over 30 years of experience in the commercial real estate industry, Mike has represented
large developers in leasing, marketing, and development of office and industrial properties.
He has been directly responsible for the leasing and marketing of a combined portfolio of
3.5 million square feet of commercial space for the Lincoln Property Company in Dallas, The
Howard Hughes Corporation, and American Nevada Company in Las Vegas.
During his career, he consummated transactions with major corporations such as, Bank of
America, Lewis & Roca, Kolesar & Leathan, Vargus & Bartlett, Hale Lane, Gordon & Silver
Smith Barney, New York Life, TravelScape / Expedia , Dean Witter, USB Securities, Dain
Bosworth Securities, Charles Schwab, American Express Financial Services, HCAThe Hospital
Corporation of America, Cardiovascular Consultants, Paychex, Brown & Brown Insurance,
First American Title, Chicago Title , Ticor Title , Fidelity Title, PBS&J Engineering,
Providian Financial, Encore Productions, The Art Institute, Impac Medical Services, CH2M
Hill Engineering, WP Moore Engineering, Ogilvy & Mather Advertising, and Nevada State
Contractors Board, City National Bank, Starbucks, Chicago Title, ESPN, Citadel Broadcasting,
Chase Manhattan Mortgage, Ford Motor Credit call center, Zappos.com call center and
Yellowpages.com call center.
Mike is a graduate of the University of Utah and holds a Bachelor of Science degree in Business
Administration & Finance. He was awarded the 2007 Las Vegas Commercial Alliance Member
of the year. He achieved the commercial real estate industry’s CCIM designation in 1992 and
his SIOR designation in 2008.
Las Vegas Office
3800 Howard Hughes Parkway, Suite 1200
Tel 702.796.7900 Fax 702.796.7920
www.commercecrg.com
Carolyn Curtis, CCIM Senior Office Director
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Carolyn Curtis brings her wealth of experience, dedication and hard work to the highly regarded
Commerce CRG team. Carolyn has been a licensed real estate agent for over 30 years; it would
be difficult to find anyone with as much knowledge and experience in the real estate industry
as Carolyn.
After graduating from the University of Oregon, with a Bachelor of Arts degree, Carolyn spent
two years as an educator before making the move to the real estate industry. She began her
career in residential properties before joining a commercial property management company
with several family members. Carolyn gained invaluable experience in the property management
segment before moving to Portland, OR to join Norris, Beggs & Simpson a prestigious full
service commercial brokerage firm as an office specialist. During her 14 years with the firm
Carolyn was involved in hundreds of transactions, including the disposition, acquisition, and
leasing of office properties, as well as the purchase and sales of developable land. She was
among the top producing agents in the firm.
Carolyn moved to Las Vegas in the late 1990’s and continued her career in real estate as a
residential property specialist. Her dedication and work ethic, combined with her ability to
build trust with clients, ensured her success in the residential real estate arena. After several
years in residential real estate, she decided it was time to return to her real passion of commercial
real estate.
Carolyn is an analytical thinker who can recognize potential conflicts early and will immediately
find a solution before situations escalate into problems. She has extensive knowledge in
investment counseling, site selection, equity exchange, leasing, sales-leasebacks and real estate
development. She understands the real estate market from every angle and uses that knowledge
in assisting her clients in achieving their real estate objective.
Education and learning are an important part of Carolyn’s philosophy and she uses this to
enhance her abilities as a commercial real estate representative. Carolyn is a Certified Commercial
Investment Member (CCIM), and holds real estate licenses in Oregon and Nevada.
Las Vegas Office
3800 Howard Hughes Parkway, Suite 1200
Tel 702.796.7900 Fax 702.796.7920
www.commercecrg.com
A Proposal for Client Advisory Services
roles and responsibilities
David Jewkes is our Managing Director of Property Management and Financial Analysis.
David brings with him a wealth of real estate and business experience which has become
invaluable to the organization. David has more than 20 years of real estate management and
transaction experience, with specific expertise in corporate growth strategies. He also spent
two years in a senior position with the Salt Lake Olympic Organizing Committee before
joining Commerce CRG.
Christopher A. Schultz serves as the Director of Engineering and Construction for the
Commerce CRG office in Las Vegas, Nevada. In this capacity Chris oversees all maintenance
and inspections of properties, reviews and supervises tenant improvements, handles tenant
and owner relations, supervises all vendor contracts, and advises on capital improvements.
Kay Cuba is the Director of Asset Valuation with over twenty years experience in the
appraisal field primarily in the banking industry and fee appraisal business. She has extensive
experience and knowledge in the preparation of appraisal reviews and narrative appraisal
reports of various types of commercial properties including all facets of retail properties,
restaurants, c-stores/gas stations, multi-tenant office buildings, multi-family properties including
low income housing tax-credit projects, light industrial properties, golf courses, casinos, hotels,
condominium developments, health care facilities, residential subdivisions and vacant land.
Denisse Maya is our Transaction Coordinator. Denisse has over 6 years of experience
within the real estate industry. She has worked closely with Michael Dunn and Carolyn
Curtis on several of the projects referenced within this proposal. Denisse will be responsible
for all documentation, coordination and organization throughout the entire process.
Jessica Willett is our Director of Market Research for the Las Vegas office. Jessica has
over 6 years of experience within the real estate industry. She is responsible for up-to-date
market data, which is essential in providing our clients with the best possible picture of what
is going on in the commercial real estate market.
A Proposal for Client Advisory Services
I n d u s try pa rt n e r s
NAIOP is a national association with 10,000+ members and an extensive network of
48 chapters that represent the interests of developers and owners of industrial, office
and related commercial real estate throughout North America. NAIOP provides
communication, networking and business opportunities for all real estate related
professionals; provides a forum for continuing education; and promotes effective public
policy, through its grassroots network, to create, protect and enhance property values.
As economies throughout the world are adjusting to the formation of new markets and
increased free trade opportunities, the role of the commercial real estate professional is
more important than ever. A Certified Commercial Investment Member (CCIM) is a
recognized professional in commercial real estate brokerage, leasing, asset management,
valuation, and investment analysis. As an experienced expert, a CCIM is an invaluable
resource to the commercial real estate owner, investor, and user.
The Society of Industrial and Office REALTORS® is the leading professional
commercial and industrial real estate association. With more than 2,200 members
in 450 cities in 20 countries, the Society represents today’s most knowledgeable,
experienced, and successful commercial real estate brokerage specialists.
The Institute of Real Estate Management (IREM®) has been the source for education,
resources, information and membership for real estate management professionals
for more than 70 years. An affiliate of the NATIONAL ASSOCIATION OF
REALTORS®, IREM is the only professional real estate management association
serving both the multi-family and commercial real estate sectors. With 82 U.S. chapters,
seven international chapters, and several other partnerships around the globe, IREM
is an international organization that serves as an advocate on issues affecting the real
estate management industry.
Founded in 1957, the International Council of Shopping Centers (ICSC) is the global
trade association of the shopping center industry. Its 39,000 members in the U.S.,
Canada and more than 70 other countries include shopping center owners, developers,
managers, marketing specialists, investors, lenders, retailers and other professionals as
well as academics and public officials. As the global industry trade association, ICSC
links with more than 20 national and regional shopping center councils throughout
the world.
A Proposal for Client Advisory Services
about
The SOCIETY OF INDUSTRIAL AND OFFICE REALTORS® is the leading professional commercial and industrial
real estate association. With more than 3,200 members in more than 590 cities in 25 countries, SIOR represents
today’s most knowledgeable, experienced, and successful commercial real estate brokerage specialists.
SIOR has certified more than 2,800 of its members with the prestigious SIOR designation, a professional symbol of
the highest level of knowledge, production, and ethics in the real estate industry. Real estate professionals who have
earned the SIOR designation are recognized by corporate real estate executives, commercial real estate brokers,
agents, lenders, and other real estate professionals as the most capable and experienced brokerage practitioners in
any market. SIOR designees can hold the following specialty designations: industrial, office, sales manager, executive
manager, or advisory service.
SIOR also includes associate members who include corporate executives, developers, educators, and other involved
in the commercial real estate industry.
A professional affiliate of the NATIONAL ASSOCIATION OF REALTORS®, SIOR is dedicated to the practice and
maintenance of the highest professional and ethical standards. SIOR maintains a commitment to business and industry by providing outstanding professional services, publications, and educational programs.
Transaction Data shows the success of SIOR members:
Extrapolated data shows that in 2007 the average SIOR member estimated that he or she leased or sold an average
of 1.2 million square feet of space for a total dollar volume of $46,725,400 in 31.8 transactions.
As a group, SIOR designees sold or leased more than 3.3 billion square feet of space in 83, 539 transactions with a
total dollar volume consideration of more than $122.747 billion dollars.
© Copyright 2009 SIOR. All Rights Reserved. Privacy Policy. Legal Disclaimer.
R e l e va n t
experience
A Proposal for Client Advisory Services
R e l e va n t e x p e r i e n c e
dunn/Curtis team tenant representation experience
TENANT
Ford Motor Company
The Art Institute
Providian Financial Services
YellowPages.Com Call Center
EBAY
Equivest West, Inc
Travel Scope / Expedia
PBS & J Engineering
Lewis&Roca
Zappos.Com
Chicago Title
Columbia River Inter-Tribal Fish Commission
Kolesar & Leathan (Currently Active)
Ogilvy & Mather Advertising
Vargus&Bartlett
American Express
Brown & Brown Insurance
Hale Lane
USB Securities
Solomon, Smith Barney
Gordon & Silver
WP Moore Engineering
New York Life
Paychex
GE Capital
City National Bank
CH2M Hill Engineering
Par Springer - Miller
SF
111,000
65,000
64,000
63,000
60,000
55,000
52,000
48,000
32,000
33,000
27,000
26,000
25,000
24,000
24,000
23,000
21,000
18,000
16,000
15,000
15,000
14,000
14,000
12,800
12,500
12,000
11,000
10,000
COMMERCE CRG
C USH M AN & WAKEFILED
AFFILIAT ION
Full Service Commercial Real Estate
Utah
Nevada
Retail
Land
Appraisal
Industrial
Investment
Office
Asset Services
commercecrg.com
COMMERCE CRG
Commerce CRG has been among the top commercial
real estate brokerage firms in the Intermountain West for 30
years. From our headquarters in Salt Lake City and offices
in Provo/Orem, Park City, Clearfield and St. George, Utah
and Las Vegas, Nevada we offer a full range of brokerage
services, valuation and consulting, client representation
and property/facility management. Our alliance with
Cushman & Wakefield extends our reach worldwide.
COMMERCE CRG HAS SIX OFFICES LOCATED
THROUGHOUT THE INTERMOUNTAIN WEST.
Meeting your real estate objectives is our number
one goal at Commerce CRG. Whether you’re
looking to lease, own, develop or sell commercial
properties, we have the team of professionals to
get it done for you. Our seasoned agents are
recognized both regionally and nationally for
their first-rate performance; and because of their
success, they tend to stay with our company
longer. The average tenure of Commerce CRG
agents is one of the longest in the industry.
That means you’re getting an experienced agent
when you do business with us. You’re also gaining
access to Commerce CRG’s Information Services,
which include our Geographic Information System
(GIS), the industry standard-bearer in mapping. In
addition, you will receive unmatched service in
marketing, graphic design and industry research.
At Commerce CRG we have a complete
understanding of the real estate market. Our
comprehensive database allows our agents to
feel, track and analyze every movement in the
industry and to see opportunities as soon as they
arise. Combine this with the global resources
of Cushman & Wakefield and you get the most
innovative and progressive real estate brokerage
in the Intermountain West: Commerce CRG.
Doing business in a brisk and nuanced
marketplace is complex and difficult. We can
help. Our experience, knowledge, innovative
thinking, networking infrastructure and unmatched
service make Commerce CRG the clear choice
for your commercial real estate needs.
OVERVIEW
Over the past ten years, Commerce CRG has
completed over 8,809 assignments, 9,026,794,410
square feet, valued at over $6,166,882,090.
Commerce CRG has over 150 active agents
located in six offices in the Intermountain West.
Simply put, our professionals draw from an
enormous body of relevant knowledge gained
through a substantial volume of experience.
A significant distinguishing strength is the level of
due diligence and analysis we perform. Securing
space is important, but securing the right space
is what sets our firm apart in the industry. Our
Project Teams take the time to analyze all the
conditions and considerations that will affect the
real estate strategy and the ultimate decision
of the client. A client’s business goals (shortterm and long-term), growth potential, financial
considerations, communication concerns,
attrition risk, image requirements, and timing
issues are just some of the areas reviewed at
the outset of each assignment. The product of
these efforts is an informed real estate decision.
WHEN WAS COMMERCE CRG FOUNDED?
Commerce Properties was founded in April
1979. Commerce CRG will be celebrating
our 30th anniversary throughout 2009.
HOW MANY COMMERCE CRG OFFICES ARE THERE?
There are currently six Commerce CRG offices
located in Utah and Nevada, plus several
on-site property management offices.
WHAT IS THE RELATIONSHIP BETWEEN OFFICES?
All Commerce CRG offices are under the
same ownership. Each Commerce CRG
agent has access to all local and national
resources including market research, mapping/
GIS, graphic design, administrative support,
tech support and general marketing.
Over 9 billion
square feet of
transactions over
the past 10 years.
COMMERCE CRG
BEEN INVOLVED IN
8,809 TRANSACTIONS
OVER THE PAST
10 YEARS.
HISTORY
In January 2006 Commerce CRG continued
a long tradition of growth and expansion by
opening our newest office in Las Vegas. This
followed other office openings in Provo (October
1998), Clearfield (March 1999), Park City
(August 2001) and St. George (April 2003).
But the history of Commerce CRG really
began three decades earlier when
Commerce Properties, Inc. was founded
in April 1979. In the decade that followed,
Commerce Properties established itself as
the premier real estate firm in the region
for industrial and investment properties.
In April 1987 another brokerage group,
Consolidated Realty Group (CRG), was born. A
young and energetic company, CRG quickly
became known for its office and retail divisions
and for its dynamic use of new technology.
By the end of 1998, it became clear that
the two firms would be a perfect fit if they
could combine resources, merge and create
a larger company capable of investing in
new technology and in-house mapping,
research and marketing departments.
The two firms merged in January 1999 to form
Commerce CRG. The company was soon looking
for a fresh new direction and new leadership to
take it there. In 2002 Michael Lawson was hired
as President and CEO, and the firm has continued
to grow under his leadership. At the time of the
merger, Commerce CRG had 70 agents in three
offices. It now has over 170 agents in six offices.
Commerce CRG is no longer just a regional
real estate brokerage. In June 2004, the
company became an independently
owned and operated member of the
Cushman & Wakefield International Alliance
and extended its reach worldwide.
230 Offices in 58 Countries
Europe
Austria
Vienna*
Canada
Alberta
Calgary
Edmonton*
Belgium
Manitoba
Newfoundland
New Brunswick
Nova Scotia
Moncton*
Saint John*
Ontario
Winnipeg*
British Columbia Fredericton*
Vancouver
United States
Alabama
Birmingham*
Mobile
Arizona
Maine
Portland
Baltimore
Bethesda
California
Boston
Michigan
Colorado
Nevada
Connecticut
Hartford
Stamford
Delaware
Wilmington
District of
Columbia
Washington, D.C.
Florida
Ft. Lauderdale
Ft. Myers*
Jacksonville
Miami
Orlando
Palm Beach Gardens
Tampa
Georgia
Atlanta
Hawaii
Honolulu
Illinois
Chicago
Chicago Suburban
Indiana
Indianapolis*
Kentucky
Louisville*
Jersey*
Czech Republ
Prague
Denmark
St. John's*
Copenhagen*
England
Halifax*
Birmingham
London-City
London-West En
Manchester
Thames Valley
London
Newmarket
Ottawa
Toronto Central
Toronto East
Toronto West
Quebec
Massachusetts
Carlsbad
Inland Empire
L.A.
L.A. South Bay
L.A. West
Marin/Sonoma Cty
Oakland
Orange County
Sacramento
San Diego - Downtown
San Diego - Eastgate
San Francisco
San Jose
Walnut Creek
Colorado Springs*
Denver
Channel Island
Pleven*
Plovdiv*
Sofia*
Montreal Central
Montreal Suburban
Maryland
Phoenix
Tempe
Tucson*
Brussels
Bulgaria
Detroit*
Grand Rapids*
Grosse Point
Kalamazoo*
Lansing*
Muskegon*
Ohio
Minnesota
Portland
Minneapolis
Minneapolis Suburban
Missouri
Kansas City*
St. Louis*
Las Vegas*
Reno
New Hampshire
Manchester
New Jersey
East Rutherford
Edison
Morristown
New York
Albany*
Binghamton*
Buffalo*
Corning/Elmira*
Islandia
Ithaca*
Kingston*
Melville, LI
N.Y. Downtown
N.Y. Midtown
Rochester*
Syracuse
Syracuse*
Utica*
Watertown*
Westchester County
North Carolina
Charlotte*
Greensboro/Winston-Salem*
Raleigh/Cary
Raleigh/Durham*
Tarboro*
Middle East/Africa
Cincinnati*
Cleveland*
Columbus*
Toledo*
Israel
South Africa
Tel Aviv*
Cape Town*
Durban*
Johannesburg*
Pretoria*
Lebanon
Oregon
Beirut*
Pennsylvania
Philadelphia
Philadelphia Suburban
Pittsburgh*
Puerto Rico
San Juan*
South Carolina
Charleston*
Greenville/Spartanburg*
Tennessee
Memphis*
Nashville*
Texas
Austin*
Dallas
Houston
San Antonio*
Utah
Clearfield/Ogden*
Park City*
Provo/Orem*
Salt Lake City*
St. George*
Virginia
Fredicksburg*
McLean
Newport News*
Norfolk/Virginia Beach*
Richmond*
Roanoke*
Washington
Bellevue
Seattle
Wisconsin
Milwaukee*
Latin America
Argentina
Buenos Aires
Brazil
Manaus
Rio de Janeiro
São Paulo
Chile
Santiago*
Colombia
Bogota*
Ecuador
Quito
Mexico
Ciudad Juarez
Guadalajara*
Mexico City
Monterrey
Peru
Lima
Venezuela
Caracas
United Arab Emirates
Dubai
ds
lic
nd
Cushman & Wakefield Alliance
A number of Cushman & Wakefield offices,
including Commerce CRG, are independently
owned and connected with the company by way
of an international alliance. Cushman & Wakefield
concentrates on larger markets like Los Angeles and
New York, and alliance members like Commerce CRG
concentrate on developing secondary markets.
France
Ireland
Germany
Italy
Lyon
Paris
Berlin
Dusseldorf
Frankfurt
Hamburg
Munich
Greece
Athens
Hungary
Budapest
Cork*
Dublin*
Bologna
Milan
Rome
Luxembourg
Luxembourg*
Macedonia
Skopje*
The Netherlands
Amsterdam
Northern Ireland
Belfast*
Norway
Drammen*
Oslo*
Stavanger*
Russia
Moscow
Scotland
Poland
Edinburgh
Glasgow
Portugal
Belgrade*
Warsaw
Lisbon
Romania
Bucharest
Timisoara
Serbia
Slovakia
Bratislava
Spain
Barcelona
Madrid
Sweden
Stockholm
Switzerland
Basel*
Geneva*
Zurich*
Turkey
Istanbul
Australia/Asia Pacific
Australia
Adelaide*
Melbourne*
Sydney
China
Beijing
Chengdu
Guangzhou
Hong Kong
Shanghai
Shenzhen
Fiji*
India
Bangalore
Chennai
Gurgaon
Hyderabad
Kolkata
Mumbai – City
Mumbai – Suburbs
New Delhi
Pune
Indonesia
Jakarta
Japan
Tokyo
Malaysia
Kuala Lumpur*
New Zealand
Auckland*
Wellington*
Pakistan
Karachi*
Philippines
Manila*
Singapore
South Korea
Busan
Seoul
Taiwan
Taipei*
Thailand
Bangkok*
Vietnam
Hanoi
Ho Chi Minh City
C&W Owned Offices
C&W Alliance/Associate Offices
AS OF MARCH 2009
Together the geographic coverage is nearly
universal. This enables Cushman & Wakefield to
provide comprehensive services for clients with local
requirements as well as for those with more expansive
national or international portfolios. In either case,
Cushman & Wakefield’s services are supported by
the full integrated resources of the entire alliance.
Cushman & Wakefield is the world’s largest privatelyheld commercial real estate services firm. Founded
in 1917, it has 230 offices in 58 countries and more
than 15,000 employees. The firm represents a diverse
customer base ranging from small businesses to Fortune
500 companies. It offers a complete range of services
within four primary disciplines: Transaction Services,
including tenant and landlord representation in office,
industrial and retail real estate; Capital Markets,
including property sales, investment management,
valuation services, investment banking, debt and equity
financing; Client Solutions, including integrated real
estate strategies for large corporations and property
owners, and Consulting Services, including business
and real estate consulting. A recognized leader in
global real estate research, the firm publishes a broad
array of proprietary reports available on its online
Knowledge Center at www.cushmanwakefield.com.
Office Locations
Salt Lake City
175 East 400 South, Suite 700
Salt Lake City, Utah 84111
Tel 801-322-2000
Asset Services 801-401-3100
Provo / Orem
1180 South 800 East
Orem, Utah 84015
Tel 801-377-2400
Northern Utah
1412 South Legend Hills Drive, Suite 100
Clearfield, Utah 84015
Tel 801-525-3000
Southern Utah
1363 East 170 South, Suite 100
St. George, Utah 84790
Tel 435-673-7111
Park City
614 Main Street, Suite 200
Park City, Utah 84060
Tel 435-615-6825
Las Vegas, NV
3800 Howard Hughes Parkway, Suite 1200
Las Vegas, Nevada 89169
Tel 702-796-7900
www.commercecrg.com
OU R P R O M ISE
A Proposal for Client Advisory Services
O u r Pr o m i s e
• Regardless of the State Bar of Nevada’s decision to lease or to purchase a new facility, the Project Team will manage the challenges, mitigate the risks, and maximize the opportunities to deliver the following benefits:
- Secure the best facility to meet current and future space requirements
- Negotiate directly with Landlord/Seller to ensure optimal financial terms for the State Bar
- Realize optimal timing through financial analysis
• The Project Team will utilize our expertise to provide a cost-effective, functional occupancy solution throughout the lease/purchase process
- Situation analysis and strategy development
- Market analysis and property surveys
- Alternative site qualification and selection
- Provide market comparable lease and sales data
- Transaction negotiations
- Transaction coordination and implementation services
Las Vegas Office
3800 Howard Hughes Pkwy, Suite 1200
Las Vegas, NV 89169
Tel (702) 796-7900 Fax (702) 796-7920
www.commercecrg.com