lipsey’s seven key steps to winning a listing presented by michael j. lipsey presented by michael...
TRANSCRIPT
LIPSEY’S SEVEN LIPSEY’S SEVEN KEY STEPS TO KEY STEPS TO
WINNING A LISTINGWINNING A LISTING
LIPSEY’S SEVEN LIPSEY’S SEVEN KEY STEPS TO KEY STEPS TO
WINNING A LISTINGWINNING A LISTING
Presented byPresented byMICHAEL J. LIPSEYMICHAEL J. LIPSEY
Presented byPresented byMICHAEL J. LIPSEYMICHAEL J. LIPSEY
STEP ONESTEP ONESTEP ONESTEP ONE
KNOW YOUR CLIENT’S KNOW YOUR CLIENT’S OBJECTIVESOBJECTIVES
• Stabilize Rent Roll and add substantial credit
• Achieve highest Present Value and minimize Concessions, particularly Tenant Improvements
Through discovery, understand and know your client’s objectives
• Achieve 93% Occupancy by 12/31
Tier 1
Industry Specific
Inexpensive
MostLogical
Large #
Finely Tuned
Tier 2
Tier 3
Tier 4 Logical Prospect
DATABASECOUNT
MARKETING MEDIUM
TARGET MARKET:TARGET MARKET:
STEP TWOSTEP TWOSTEP TWOSTEP TWO
Pharmaceutical – Real Estate StaffBulk Mail/BC Email
Marketing Associate
Vice Presidents of Real Estate
Directors or Presidents of Real
Estate
CFOs
Associate Brokers
Senior Broker/ Associate Broker
Senior Broker
Marketing Materials &
Personal Call
Direct MailPersonal Call
Mission to Mission
TARGET MARKET:TARGET MARKET:
INDUSTRY SPECIFIC USERINDUSTRY SPECIFIC USER
STEP TWOSTEP TWO
STEP THREESTEP THREESTEP THREESTEP THREE
• 50,000 SF of Net Absorption
• Achieve 92% Occupancy by 12/31
• Close 10 Leases at approx. 5,000 SF
LEASING PLAN:LEASING PLAN:
STEP THREESTEP THREESTEP THREESTEP THREE
LEASING PLAN: LEASING PLAN: Assumptions – 9 Month Assumptions – 9 Month PlanPlan
55 Leases will require
10 Lease Negotiations
30 Letters of Intent
90 Proposals
360 Site Visits
2,160 Contacts
21,600 Units of Activity
ACTIVITY Month 1
Actual Month 2
Actual Month 3
Actual
Units of Activity 2400 2400 2400
Contacts 240 240 240
Site Visits 40 detail 40 detail 40 detail
Proposals 10 docs 10 docs 10 docs
Letters of Intent 3 docs 3 docs 3 docs
Lease Negotiation 2 detail 1 detail 2 detail
Signed Leases 0 view 0 view 1 view
Cumulative Tenants
0 0 1
STEP THREESTEP THREE
ACTIVITY Month 4
Actual Month 5
Actual Month 6
Actual
Units of Activity 2400 2400 2400
Contacts 240 240 240
Site Visits 40 detail 40 detail 40 detail
Proposals 10 docs 10 docs 10 docs
Letters of Intent 4 docs 3 docs 4 docs
Lease Negotiation 1 detail 1 detail 2 detail
Signed Leases 1 view 1 view 0 view
Cumulative Tenants
2 3 3
STEP THREESTEP THREE
ACTIVITY Month 7
Actual Month 8
Actual Month 9
Actual
Units of Activity 2400 2400 2400
Contacts 300 300 300
Site Visits 40 detail 40 detail 40 detail
Proposals 10 docs 10 docs 10 docs
Letters of Intent 3 docs 3 docs 3 docs
Lease Negotiation 1 detail 1 detail 1 detail
Signed Leases 1 view 1 view 0 view
Cumulative Tenants
4 5 5
STEP THREESTEP THREE
STEP FOURSTEP FOURSTEP FOURSTEP FOUR
SHOW COMPARABLES:SHOW COMPARABLES:
10kwizard.com10kwizard.com is an online site offering a wide variety of financial Information and data on publicly traded companies.
The site is easy to navigate, affordable (approx. $230/year) and offers online training and technical support.
SEARCH INTERNET SOURCES FORSEARCH INTERNET SOURCES FOR PUBLICLY TRADEDPUBLICLY TRADED COMPANIESCOMPANIES
CoStar Verified National Data StatisticsCoStar Verified National Data StatisticsPROPERTY
Over 2.2 million verified and continuously updated properties
41 billion SF of inventory
3.9 million digital images
Over 800,000 for-sale and for-lease property listings
Over 1.5 Million store locations for retailers
Coverage in over 300 MSAs plus parts of UK & France
COMPSOver 1 million detailed comparable sales records valued at 2 trillion dollars
TENANT3 million plus tenants
PROFESSIONAL DIRECTORY750,000 real estate professionals nationwide
Commercial Real Estate News9,500 news stories in 2006 – major lease transactions, acquisitions, new construction, key personnel moves, and industry events.
CoStar Group is a research service utilized by
over 50,000 commercial real estate
professionals
STEP FOURSTEP FOUR
STEP FIVESTEP FIVESTEP FIVESTEP FIVE
PRESENT VALUE RANGE FOR EACH PRESENT VALUE RANGE FOR EACH VACANCY:VACANCY:
1 - Yellow Key - PMT1 - Yellow Key - PMT
End of Period - EOPEnd of Period - EOP
Yellow Key – Yellow Key – MARMAR BEG/ENDBEG/END
OF
FIC
E L
EA
SE
OF
FIC
E L
EA
SE
OF
FIC
E L
EA
SE
OF
FIC
E L
EA
SE
CALCULATE PRESENT VALUE:CALCULATE PRESENT VALUE:
N
I
PV
PMT
Term: 5 YearsSpace: 10,000 sq. ft.Rent: $25 sq. ft.Discount Rate:10
STEP FIVESTEP FIVE
PRESENT VALUE RANGE FOR EACH PRESENT VALUE RANGE FOR EACH VACANCY:VACANCY:
STEP FIVESTEP FIVE
OF
FIC
E L
EA
SE
OF
FIC
E L
EA
SE
OF
FIC
E L
EA
SE
OF
FIC
E L
EA
SE
CALCULATE PRESENT VALUE:CALCULATE PRESENT VALUE:
N
I
PV
PMT
10 into I10 into I
5 into N5 into N
$250,000$250,000
Term: 5 YearsSpace: 10,000 sq. ft.Rent: $25 sq. ft.Discount Rate:10
$947,696$947,696
STEP FIVESTEP FIVE
IND
US
TR
IAL
LE
AS
EIN
DU
ST
RIA
L L
EA
SE
IND
US
TR
IAL
LE
AS
EIN
DU
ST
RIA
L L
EA
SE Space: 50,000 sq. ft.
Term: 7 Years
Rent: $7 sq. ft.
Discount Rate:9
CALCULATE PRESENT VALUE:CALCULATE PRESENT VALUE:
N
I
PV
PMT
9 into I9 into I
7 into N7 into N
$350,000$350,000
$1,761,533$1,761,533
STEP FIVESTEP FIVE
BRACKETING THE COMPSBRACKETING THE COMPS
10,000 sq. ft. - 5 yr. Term - $25/sq. ft. - Discount Rate 1110,000 sq. ft. - 5 yr. Term - $25/sq. ft. - Discount Rate 11
N I PMT = PVN I PMT = PV
10,000 sq. ft. - 5 yr. Term - $19/sq. ft. – Discount Rate 1110,000 sq. ft. - 5 yr. Term - $19/sq. ft. – Discount Rate 11
N I PMT PV = N I PMT PV =
AVERAGE PVAVERAGE PV
STEP FIVESTEP FIVE
BR
AC
KE
TIN
G T
HE
CO
MP
SB
RA
CK
ET
ING
TH
E C
OM
PS
N
I
PV
PMT
N
I
PV
PMT
11 into I11 into I
5 into N5 into N
$250,000$250,000
$923,974$923,974
11 into I11 into I
5 into N5 into N
$190,000$190,000
$702,220$702,220
STEP FIVESTEP FIVE
PRESENT VALUE EACH VACANCYPRESENT VALUE EACH VACANCY
10,000 sq. ft. - 5 yr. Term - $25/sq. ft. - Discount Rate 1110,000 sq. ft. - 5 yr. Term - $25/sq. ft. - Discount Rate 11
N I PMT = PVN I PMT = PV
10,000 sq. ft. - 5 yr. Term - $19/sq. ft. – Discount Rate 1110,000 sq. ft. - 5 yr. Term - $19/sq. ft. – Discount Rate 11
N I PMT PV = N I PMT PV =
$813,097$813,097MID POINTMID POINT
5 into N 11 into I $250,000
$923,974$923,974
5 into N 11 into I $190,000
$702,220$702,220
STEP FIVESTEP FIVE
BRACKETING THE COMPSBRACKETING THE COMPS
10,000 sq. ft. - 5 yr. Term - $20/sq. ft. - Discount Rate 1010,000 sq. ft. - 5 yr. Term - $20/sq. ft. - Discount Rate 10
N I PMT = PVN I PMT = PV
10,000 sq. ft. - 5 yr. Term - $15/sq. ft. – Discount Rate 1110,000 sq. ft. - 5 yr. Term - $15/sq. ft. – Discount Rate 11
N I PMT PV = N I PMT PV =
5 into N 10 into I $200,000
5 into N 10 into I $150,000
$758,157$758,157
$663,387$663,387MID POINT OR 50-YARD LINEMID POINT OR 50-YARD LINE
$568,618$568,618
STEP FIVESTEP FIVE
STEP SIXSTEP SIXSTEP SIXSTEP SIX
AFTER TOUR.COMAFTER TOUR.COM
AfterTour.com is the industry’s only online system for real time reporting, allowing commercial brokers to: •Provide instant property tour feedback to their clients
•Increase client satisfaction
•Win more listing presentations
STEP SIXSTEP SIXSTEP SIXSTEP SIX
AFTER TOUR.COMAFTER TOUR.COM
AfterTour.com instantly let Owners know how prospects feel about:
•Pricing•Property amenities•Space layout•Demographics•Transportation•Parking•Security… and much more
STEP SIXSTEP SIXSTEP SIXSTEP SIX
AFTER TOUR.COMAFTER TOUR.COM
STEP SIXSTEP SIXSTEP SIXSTEP SIX
AFTER TOUR.COMAFTER TOUR.COM
This simple, easy to use, system of reporting
keeps Owners fully informed while allowing
you, the Broker, to focus on business
development – not transaction management.
STEP SIXSTEP SIXSTEP SIXSTEP SIX
STEP SEVENSTEP SEVENSTEP SEVENSTEP SEVEN
AFTER LEASE SERVICES:AFTER LEASE SERVICES:
Calculate Pass-throughs and Escalations
Appraisal of Vacancy
Lease Comparisons
Competitive Analysis
Green Buildings and LEED Certification