WASHINGTON DC METRO PLAYBOOK Presented to …...Mar 08, 2018 · Branch Management: Staubach Philadelphia, Managing Principal. SELKIRK PARTNERS WASHINGTON DC METRO PLAYBOOK - MARCH

WASHINGTON DC METRO PLAYBOOK Presented to TranswesternMarch 2018 February 2017 March 2015

SELKIRK PARTNERS

SELKIRK PARTNERS WASHINGTON DC METRO PLAYBOOK - MARCH 2018 2

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


STATE OF THE UNION – TRANSWESTERN WASHINGTON

Good Roots

Changing of the guard

Some missing links – lost some players to free agency

Bigger is not always Better

How to Differentiate


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


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


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.”


COMMON DENOMINATOR - COMMISSIONS PER SFOpportunity Agency

Government /

Public Sector

Corporate

ServicesLaw Firms Technology Engineering

Financial

ServicesNon-profit

ProfileLong term relationship, immediate revenue opportunity, half-fees

Big transactions, portfolio services, cross-sell opportunities

Recurring revenue, cross-sell opportunities, insulates down market

Highest fees PSF, trophy space

Flexibility, short term leases

Contract related, short-term leases

High-end space, large fee PSF

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%

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


COMMON DENOMINATOR - COMMISSIONS PER SFOpportunity Agency

Government /

Public Sector

Corporate

ServicesLaw Firms Technology Engineering

Financial

ServicesNon-profit

ProfileLong term relationship, immediate revenue opportunity, half-fees

Big transactions, portfolio services, cross-sell opportunities

Recurring revenue, cross-sell opportunities, insulates down market

Highest fees PSF, trophy space

Flexibility, short term leases

Contract related, short-term leases

High-end space, large fee PSF

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%

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


GAME PLAN

First Who, then What

Play to your Strengths

A look at Agency, Occupier and Corporate Services

Marketing State of Mind

The Next Generation

Culture of We

“Work your Strengths; Partner your Weaknesses.”


THE PLAYING FIELDVIRGINIA DC MARYLAND TOTAL

Size 138M SF 105M SF 69M SF 312M SF

Vacancy Rate 18.0% 9.1% 16.7%Industrial/Flex

219M SF

Class A Average Rents $35.18 $60.75 $26.33

Under Construction 2.9M sf 5.6M sf 224,000 sf

Movers and Shakers86,700 net job growth in the 12 months ending

March 2016 (the highest since 2000).

UNEMPLOYMENT

U.S. VIRGINIA DC MARYLAND

4.9% 3.9% 6.0% 5.3%


FIRST WHO: ROSTER – WASHINGTON, DC



A look at Service Platform


The Next Generation

Culture of We


FIRST WHO: ROSTER - VIRGINIA





The Next Generation

Culture of We


FIRST WHO: ROSTER - MARYLAND





The Next Generation

Culture of We


FIRST WHO: ROSTER – CUSHMAN & WAKEFIELD (DC)





The Next Generation

Culture of We


FIRST WHO: ON THE FIELD





The Next Generation

Culture of We

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%


FIRST WHO: BY THE NUMBERS



A look at Occupier Services


The Next Generation

Culture of We

#

GROSS

NORTHERN

VIRGINIA

WASHINGTON

DC

SUB

MARYLANDTOTALS

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

Aggregate $14,600,000 $15,500,000 $7,100,000 $37,200,000


PLAY TO YOUR STRENGTHS

Asset Services (Agency Leasing and Property Management)

Capital Markets

Industrial

Market Research

Equity / Investment Opportunities

Occupier Services (Specialty Niche)

Corporate Services (Relationships, Resume)



A look at Occupier Services


The Next Generation

Culture of We


THEN WHAT: ASSET AND AGENCY SERVICES





The Next Generation

Culture of We







The Next Generation

Culture of We







The Next Generation

Culture of We



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






The Next Generation

Culture of We

THEN WHAT: CORPORATE SERVICES – BY PLATFORM





The Next Generation

Culture of We

Strategic ConsultingTransaction

ManagementWorkplace Project Management Lease Administration

Capital Markets :: Asset Services :: Facilities Management

Critical Environments :: Valuation and Advisory :: Financial Consulting

Move Management :: Lease Audit


THEN WHAT: CORPORATE SERVICES PROSPECT PROFILE

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

Mid Atlantic: Virginia to Pennsylvania


THEN WHAT: CORPORATE SERVICESKevin 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


THEN WHAT: OCCUPIER – WHAT’S ON THEIR MINDS

Culture

Collaboration

Millennials

WorkplaceWELL BEING

Talent

CHOICE

COMMUNITY First Who, then What




The Next Generation

Culture of We


THEN WHAT: OCCUPIER – BY SECTOR





The Next Generation

Culture of We

TECHNOLOGY BANKING MEDIAFINANCIAL

SERVICESLEGAL

AEROSPACE &

DEFENSE





The Next Generation

Culture of We

“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







The Next Generation

Culture of We


SERVICESLEGAL

AEROSPACE &

DEFENSE





The Next Generation

Culture of We











The Next Generation

Culture of We


SERVICESLEGAL

AEROSPACE &

DEFENSE





The Next Generation

Culture of We






MARKETING MINDSET: A NEW YORK STATE OF MIND

24 / 7 / 365

Know your Neighborhood

Develop a Niche

Six Touch Program

Get Involved

Import Expertise





The Next Generation

Culture of We


THE NEXT GENERATION

Maximizing Millennials

Wheel Program

Compensation

Mentor / Training

Social Media Megaphone





The Next Generation

Culture of We


CULTURE OF WE





The Next Generation

Culture of We

Everyone matters

Builds Loyalty

Minimizes Turnover

Happier Staff

Increases Productivity

Rising tides lifts all boats

Vested Interest

Profit Sharing / Equity Participation


ON THE BUS, IN THE RIGHT SEAT





The Next Generation

Culture of We

Kevin McShea: Transwestern Role

Personal Brokerage Practice

o Corporate Services

o Agency Services

o Occupier Services

Regional Leadership Committee / Initiatives

Ambassador - CoreNet, Washington Board of Trade, Wolf Trap, Maryland Tech Council


WHY MCSHEA?

He’s one of us

Four Weddings and a Funeral

244%

He’s been everywhere

A players coach

Next generation

“Be part of something Special.”

– Larry Heard, President and CEO, Transwestern Family of Companies


THANK YOU

Gracias. 謝謝. Obrigado. .اركش Спасибо. ขอบคุณ. Dankie. ありがとう. Merci.

Documents

WASHINGTON DC METRO PLAYBOOK Presented to …...Mar 08, 2018 · Branch Management: Staubach Philadelphia, Managing Principal. SELKIRK PARTNERS WASHINGTON DC METRO PLAYBOOK - MARCH