SELKIRK PARTNERS WASHINGTON DC METRO PLAYBOOK Presented to ABC Company March 2018
STATE OF THE UNION - INDUSTRY Real Estate markets on the mend Service provider consolidation - the Big Three Gateway Cities continue to lead Recurring revenue vs. One-Off Specialize, or Die SELKIRK PARTNERS WASHINGTON DC METRO PLAYBOOK - MARCH 2018 2
STATE OF THE UNION ABC COMPANY WASHINGTON Good Roots Changing of the guard Some missing links lost some players to free agency Bigger is not always Better How to Differentiate SELKIRK PARTNERS WASHINGTON DC METRO PLAYBOOK - MARCH 2018 3
KEVIN MCSHEA - AT A GLANCE Brokerage: 32 years Tenant Advisory: Studley, Staubach Agency: Smithy Braedon, Prudential, COPT, Kemper Corporate Services: Microsoft, Wells Fargo, AIG, URS National: More than 100 cities in U.S. Branch Management: Staubach Philadelphia, Managing Principal SELKIRK PARTNERS WASHINGTON DC METRO PLAYBOOK - MARCH 2018 4
DON T JUST TAKE HIS WORD FOR IT Your knowledge of each market and your presentation of our options were always comprehensive, concise and definitive. You were able to satisfactorily build the leverage needed for below-market renewal terms. And by the way, you met or surpassed all of Microsoft s bottom-line oriented goals. Frank White, Real Estate Manager I just wanted to let you know we appreciate all that you did for the company. Your leadership was valuable to our operations in Philadelphia. You will be missed. Roger Staubach, Chairman & CEO It was indeed gratifying to deal with a real professional whose dedication to customer satisfaction places him and his firm on the highest ethical plateau. Ted Helm, Vice President Comcast tends to change the scope of a project often and Kevin s resilience is amazing. No matter what kind of change we threw at him, he continued to produce stellar results. I couldn t ask for a better representation of exemplary service. Dan Edwards, Vice President SELKIRK PARTNERS WASHINGTON DC METRO PLAYBOOK - MARCH 2018 5
GOOD IS THE ENEMY OF GREAT Why some companies make the leap 1. Level 5 Leaders: Humility + Will 2. First Who then What 3. Confront the Brutal Facts 4. Pursue only what you can be the Best 5. What drives the economic engine (common denominator) Put your best people on your biggest opportunities, not your biggest problems. SELKIRK PARTNERS WASHINGTON DC METRO PLAYBOOK - MARCH 2018 6
COMMON DENOMINATOR - COMMISSIONS PER SF Agency Government / Corporate Financial Law Firms Technology Engineering Public Sector Services Services Non-profit Profile Long term relationship, Big transactions, Recurring revenue, Highest fees PSF, Flexibility, short term Contract related, High-end space, immediate revenue portfolio services, cross-sell opportunities, trophy space leases short-term leases large fee PSF opportunity, half-fees cross-sell opportunities insulates down market 3,400 DC metro HC 50 50 50 50 50 50 50 50 SF per Head 250 250 250 400 200 250 300 300 Rental Rate $50.00 $30.00 $30.00 $60.00 $40.00 $40.00 $50.00 $30.00 Term 5 5 5 7 5 5 7 5 Commission % 1.5% 3% 3% 4% 4% 4% 4% 4% Opportunity Commission $46,875 $56,250 $56,250 $336,000 $80,000 $100,000 $210,000 $90,000 Fee Per Head $938 $1,125 $1,125 $6,720 $1,600 $2,000 $4,200 $1,800 Fee PSF $3.75 $4.50 $4.50 $16.80 $8.00 $8.00 $14.00 $6.00 SELKIRK PARTNERS WASHINGTON DC METRO PLAYBOOK - MARCH 2018 7
COMMON DENOMINATOR - COMMISSIONS PER SF Agency Government / Corporate Financial Law Firms Technology Engineering Public Sector Services Services Non-profit Profile Long term relationship, Big transactions, Recurring revenue, Highest fees PSF, Flexibility, short term Contract related, High-end space, immediate revenue portfolio services, cross-sell opportunities, trophy space leases short-term leases large fee PSF opportunity, half-fees cross-sell opportunities insulates down market 3,400 DC metro HC 50 50 50 50 50 50 50 50 SF per Head 250 250 250 400 200 250 300 300 Rental Rate $50.00 $30.00 $30.00 $60.00 $40.00 $40.00 $50.00 $30.00 Term 5 5 5 7 5 5 7 5 Commission % 1.5% 3% 3% 4% 4% 4% 4% 4% Opportunity Commission $46,875 $56,250 $56,250 $336,000 $80,000 $100,000 $210,000 $90,000 Fee Per Head $938 $1,125 $1,125 $6,720 $1,600 $2,000 $4,200 $1,800 Fee PSF $3.75 $4.50 $4.50 $16.80 $8.00 $8.00 $14.00 $6.00 $16.80 $14.00 $3.75 $4.50 SELKIRK PARTNERS WASHINGTON DC METRO PLAYBOOK - MARCH 2018 8
GAME PLAN A look at Agency, Occupier and Corporate Services Work your Strengths; Partner your Weaknesses. SELKIRK PARTNERS WASHINGTON DC METRO PLAYBOOK - MARCH 2018 9
THE PLAYING FIELD SELKIRK PARTNERS WASHINGTON DC METRO PLAYBOOK - MARCH 2018 10
FIRST WHO: ROSTER CUSHMAN & WAKEFIELD (DC) SELKIRK PARTNERS WASHINGTON DC METRO PLAYBOOK - MARCH 2018 11
FIRST WHO: ROSTER COLLIERS (VIRGINIA) SELKIRK PARTNERS First Who, then What Play to your Strengths A look at Service Platform Marketing State of Mind The Next Generation Culture of We WASHINGTON DC METRO PLAYBOOK - MARCH 2018 12
FIRST WHO: ROSTER TRANSWESTERN (MARYLAND) SELKIRK PARTNERS WASHINGTON DC METRO PLAYBOOK - MARCH 2018 13
FIRST WHO: ROSTER MOHR PARTNERS (DC REGION) SELKIRK PARTNERS WASHINGTON DC METRO PLAYBOOK - MARCH 2018 14
FIRST WHO: ON THE FIELD COVERAGE VA DC MD 138M 105M 69M POTENTIAL CAPACITY 28 26 16 SF PER BROKER 4.9M 4.8M 4.3M PRESENT CAPACITY 15 18 17 53% 69% 106% SELKIRK PARTNERS WASHINGTON DC METRO PLAYBOOK - MARCH 2018 15
FIRST WHO: BY THE NUMBERS # GROSS NORTHERN VIRGINIA WASHINGTON DC SUB MARYLAND TOTALS Exec Vice President $1,500,000 3 5 0 Senior Vice President $750,000 8 6 6 Vice President $300,000 6 5 4 Asst Vice President $200,000 6 5 4 Associate $100,000 5 5 2 Totals 28 26 16 70 A look at Occupier Services Aggregate $14,600,000 $15,500,000 $7,100,000 $37,200,000 SELKIRK PARTNERS WASHINGTON DC METRO PLAYBOOK - MARCH 2018 16
PLAY TO YOUR STRENGTHS Asset Services (Agency Leasing and Property Management) Capital Markets Market Research Occupier Services Corporate Services (Relationships, Resume) Equity / Investment Opportunities Industrial A look at Occupier Services SELKIRK PARTNERS WASHINGTON DC METRO PLAYBOOK - MARCH 2018 17
THEN WHAT: ASSET AND AGENCY SERVICES SELKIRK PARTNERS WASHINGTON DC METRO PLAYBOOK - MARCH 2018 18
THEN WHAT: ASSET AND AGENCY SERVICES SELKIRK PARTNERS WASHINGTON DC METRO PLAYBOOK - MARCH 2018 19
THEN WHAT: ASSET AND AGENCY SERVICES SELKIRK PARTNERS WASHINGTON DC METRO PLAYBOOK - MARCH 2018 20
THEN WHAT: ASSET AND AGENCY SERVICES Targeted Owners Akridge American Realty Advisors Beacon Capital Partners Boston Properties BPG Properties Brandywine Realty Trust Brookfield Office Properties Carr Properties COPT Danac Corporation First Potomac Realty Forest City Foulger-Pratt Companies Guardian Realty KBS Realty Liberty Property Trust Monday Properties Monument Realty Petersen Companies Quadrangle Development Rubenstein Development TA Associates Thomas Properties Group TIAA CREF TishmanSpeyer Vornado Realty Trust WRIT I found Kevin to be highly professional individual, whose knowledge of real estate and the local real estate community makes him a valuable asset of any leasing team. - Robin Burke, Kemper Most directly in your role as an owner s leasing representative, your energetic pursuit of prospective tenants and the fair, even-handed approach with which you negotiated the ensuing transaction gained by respect early on always assured me that my company s best interests were being well represented consistently able to win access to excellent prospect leasing opportunities. - Jud Williams, COPT SELKIRK PARTNERS WASHINGTON DC METRO PLAYBOOK - MARCH 2018 21
THEN WHAT: CORPORATE SERVICES BY PLATFORM Strategic Consulting Transaction Management Workplace Project Management Lease Administration Capital Markets :: Asset Services :: Facilities Management Culture Critical of We Environments :: Valuation and Advisory :: Financial Consulting Move Management :: Lease Audit SELKIRK PARTNERS WASHINGTON DC METRO PLAYBOOK - MARCH 2018 22
THEN WHAT: CORPORATE SERVICES PROSPECT PROFILE Mid Atlantic: Virginia to Pennsylvania Targeted Min Annual Fees $500,000 Avg Fees PSF $4.00 Req Annual SF Rollover 5 Yr Roll 125,000 Prospect Base Portfolio Size SF @ 5 x Roll 625,000 Headcount @ 4/1000 2,500 Assumed Company Revenue @ $100M per 400 seats $625,000,000 # Employees 2,500 Total SF @ 250 sf per person 625,000 SF @ 5 x Roll 125,000 Annual Portfolio Fees @ $4.00 PSF $500,000 Company Revenue @ $100M per 400 seats $625,000,000 Hoovers Results DC, VA, MD, DE, PA 227 RESULTS Gross Fees Annually $500,000 Shared 50-50 with Field $250,000 Net to Procuring Broker $125,000 SELKIRK PARTNERS WASHINGTON DC METRO PLAYBOOK - MARCH 2018 23
THEN WHAT: CORPORATE SERVICES Kevin McShea Experience Albany Atlanta Baltimore Baton Rouge Birmingham Boston Charleston Charlotte Chicago Cincinnati Cleveland Columbus Des Moines Detroit Edison Ft. Lauderdale Harrisburg Hartford Houston Indianapolis Jacksonville Kansas City Los Angeles Louisville Memphis Miami Minneapolis Mobile Nashville New York New Orleans Philadelphia Pasadena Pittsburgh Raleigh Richmond San Francisco Savannah Seattle St. Louis Tampa Virginia Beach Washington, DC Wichita West Palm SELKIRK PARTNERS WASHINGTON DC METRO PLAYBOOK - MARCH 2018 24
THEN WHAT: OCCUPIER WHAT S ON THEIR MINDS Collaboration CHOICE Culture WELL BEING Talent Workplace Millennials COMMUNITY SELKIRK PARTNERS WASHINGTON DC METRO PLAYBOOK - MARCH 2018 25
THEN WHAT: OCCUPIER BY SECTOR TECHNOLOGY BANKING MEDIA FINANCIAL SERVICES LEGAL AEROSPACE & DEFENSE We no longer need or want a salesperson to come describe the feature and benefits of their product. Today a buyer needs someone that can guide them to a better understanding of how they meet their goals. That comes when a salesperson is no longer seen as a pest, but as a respected authority on our business or industry. - John Jantsch, Duct Tape Selling SELKIRK PARTNERS WASHINGTON DC METRO PLAYBOOK - MARCH 2018 26
THEN WHAT: OCCUPIER BY SECTOR TECHNOLOGY BANKING MEDIA FINANCIAL SERVICES LEGAL AEROSPACE & DEFENSE We no longer need or want a salesperson to come describe the feature and benefits of their product. Today a buyer needs someone that can guide them to a better understanding of how they meet their goals. That comes when a salesperson is no longer seen as a pest, but as a respected authority on our business or industry. - John Jantsch, Duct Tape Selling SELKIRK PARTNERS WASHINGTON DC METRO PLAYBOOK - MARCH 2018 27
THEN WHAT: OCCUPIER BY SECTOR TECHNOLOGY BANKING MEDIA FINANCIAL SERVICES LEGAL AEROSPACE & DEFENSE We no longer need or want a salesperson to come describe the feature and benefits of their product. Today a buyer needs someone that can guide them to a better understanding of how they meet their goals. That comes when a salesperson is no longer seen as a pest, but as a respected authority on our business or industry. - John Jantsch, Duct Tape Selling SELKIRK PARTNERS WASHINGTON DC METRO PLAYBOOK - MARCH 2018 28
MARKETING MINDSET: A NEW YORK STATE OF MIND 24 / 7 / 365 Know your Neighborhood Develop a Niche Six Touch Program Get Involved Import Expertise SELKIRK PARTNERS WASHINGTON DC METRO PLAYBOOK - MARCH 2018 29
THE NEXT GENERATION Maximizing Millennials Wheel Program Compensation Mentor / Training Social Media Megaphone SELKIRK PARTNERS WASHINGTON DC METRO PLAYBOOK - MARCH 2018 30
CULTURE OF WE Everyone matters Builds Loyalty Minimizes Turnover Happier Staff Increases Productivity Rising tides lifts all boats Vested Interest Profit Sharing / Equity Participation SELKIRK PARTNERS WASHINGTON DC METRO PLAYBOOK - MARCH 2018 31
ON THE BUS, IN THE RIGHT SEAT Kevin McShea: ABC Company Role Personal Brokerage Practice o Corporate Services o o Agency Services Occupier Services Regional Leadership Committee / Initiatives Ambassador - CoreNet, Washington Board of Trade, Wolf Trap, Maryland Tech Council SELKIRK PARTNERS WASHINGTON DC METRO PLAYBOOK - MARCH 2018 32
WHY MCSHEA? He s one of us Four Weddings and a Funeral 244% He s been everywhere A players coach Next generation SELKIRK PARTNERS WASHINGTON DC METRO PLAYBOOK - MARCH 2018 33
THANK YOU Gracias. 謝謝. Obrigado.. اركش Спасибо. ขอบค ณ. Dankie. ありがとう. Merci. SELKIRK PARTNERS WASHINGTON DC METRO PLAYBOOK - MARCH 2018 34