Loading presentation...

Present Remotely

Send the link below via email or IM

Copy

Present to your audience

Start remote presentation

  • Invited audience members will follow you as you navigate and present
  • People invited to a presentation do not need a Prezi account
  • This link expires 10 minutes after you close the presentation
  • A maximum of 30 users can follow your presentation
  • Learn more about this feature in our knowledge base article

Do you really want to delete this prezi?

Neither you, nor the coeditors you shared it with will be able to recover it again.

DeleteCancel

Make your likes visible on Facebook?

Connect your Facebook account to Prezi and let your likes appear on your timeline.
You can change this under Settings & Account at any time.

No, thanks

Managing the Tenant Coordination Process

No description
by

Michael Greeby, MCR CRX CDP

on 10 March 2016

Comments (0)

Please log in to add your comment.

Report abuse

Transcript of Managing the Tenant Coordination Process

3,000 sf x $5/sf =
$15,000
The Two Key Goals of the Retail Delivery System:

Communication  

Documentation


7. Welcome Package
2 Goals
Managing the Tenant Coordination Process
Michael T. Greeby, MCR, CRX, CDP
CEO | Dream Amper
work.shopMG, LLC
Chicago
Family
Engineer
Developers
Retailers
1,500
tenant openings
Michael T. Greeby, MCR, CRX, CDP
CEO | Dream Amper
work.shopMG, LLC
Chicago
Family
Engineer
Developers
Retailers
1,500
tenant openings
Ben Wood, CRX, CDP
Vice President
The Greeby Companies, Inc.
1. The Basics
2. The Job
3. The Process
4. The Lease
5. Leasing Support
6. Tenant Design Criteria
7. Welcome Package
8. Systems and Tracking
9. Tenant Design Drawings &
Review Process

retailing & development fundamentals
goal, roles, responsibilities & organization
leasing to grand opening
obligations, deliverables & exhibits
exhibit b, estimating, lease abstract
importance, key sections
letter, LOD, manual, instructions
communication, organization, filing & reporting
preliminary, final, checklist

Topics
Retail Basics
- Cost of Goods
Occupancy Cost
Example
Clothing Retailer sells $500,000/year
and occupies 3,000 sf

What RENT can they afford?

SALES
rent
utilities
CAM
insurance
taxes
Total =
6 - 10%
Example
Max Occupancy Cost = 10% of $500,000
= $50,000 / year
Rent = 60% of total occupancy cost (+/-)
= $50,000/year x 0.60 = $30,000/year

Rent / SF = $30,000/year / 3,000 sf


= $10.00/sf/year in Rent

Development Basics
Income
When does it "pencil"?
Expenses
Land
Sitework
Building
TA/TI
Soft Costs
Financing

TOTAL
PROFORMA
Sale or Lease of real estate
Expense
= Return on Investment (ROI)
__________
Cost of development, construction & operations
INCOME
EXPENSE
REVIEW

Retailers make money from
SALES

Developers make money from
RENT

Sales and Rent are
DIRECTLY CORRELATED

Retailers
OCCUPANCY COST
should be 6 – 10% of
total gross sales

Proformas “
PENCIL
” when NOI / Total Development Cost are between
8 – 12%

1. The Basics
Tenant Coordinator / Tenant Manager
Retail Delivery Manager / Retail Project Manager

2. The Job
TENANT
SUPPORT

You will be the
first person the
Tenant calls
BALANCE

Landlord
Tenant
Goals

Lease Administration
Architecture & Design
Budgeting & Estimating
Scheduling
Construction
Management Know-How

RESPONSIBILITIES
Example
Developer can rent 4,300 sf as follows.

Does it Pencil?

$85/sf
$10/sf
$130/sf
$35/sf
$25/sf
$15/sf
$850,000
$100,000
$560,000
$150,000
$110,000
$ 60,000

$1,830,000

Example
Total Income
= 2,000 sf x $30/sf = $60,000
= 800 sf x $40/sf = $32,000
= 1,500 sf x $20/sf = $30,000
Example
$122,000 / yr

$1,830,000
PROFORMA
Does not pencil
Total Expense

1. Deliver Promises
2. Open Stores
7 Keys to Success
1. Assume NOTHING
2. Armed with information
3. Document everything
4. Follow-up, then follow-up
5. Verify it yourself
6. Barter and compromise
7. Come with a smile

REVIEW

Tenant Coordinators are the
BRIDGE

2 Goals -
DELIVER PROMISES
and
OPEN TENANTS

Tenant Coordinators need to be
MULTI-DISCIPLINED

Organizational structure is determined by the company's real estate
GOALS

To be successful, you must be
DOGGED, ACCURATE, STEADFAST, RESILIENT, COMPROMISING
and
CREATIVE

2. The Job
3. The Process
Design Criteria
Lease Exhibits
Leasing Support
Budget & Estimating
Lease Review
Welcome Package
System Setup

Accelerate the Deal
Building Drawings
LODs
Design Coordination
Plan Review
Sign Review
Municipal Coordination

Get it Right on Paper
Team Selection
Design Coordination
Value Engineering
Bid & Award
Permitting
Landlord Work
Space Turnover

Deliver Promises
Contractor Check-in
Rules & Regulations
Deposits & Fees
Permit Processing
Build-out Oversight
Trouble-shooting
Merchandising

Get Them Open
Punchlist
As-Builts
Warranties
Certificate of Occupancy
TA/TI Reconciliation

Document Collection
Ideal Retail Tenant Workflow
REVIEW

There are
5 PHASES
to the retail delivery process

Each phase requires
DIFFERENT SKILLS

Every project has its own
SPECIAL MODIFICATIONS
to the overall process



3. The Process
Multi-task
Communicate
Negotiate
Prioritize
Follow-up
Sense of Urgency
Adapt Quickly
Juggle Tasks & Roles

SKILLS
GUIDE
1. The Basics
- Cost of Goods
- Operations
- Cost of Goods
- Operations
- Occupancy
- Cost of Goods
- Operations
- Occupancy
60%
10%
20%
4%
6%
INCOME
EXPENSE
= 8 - 12%
6.7%

A good system asks the right questions at the right times to trigger responsible flow of communication.

Congratulations on the signing of your xx store lease at The Project.

Landlord’s Tenant Coordination team, TC #1 and TC #2, are The Project liaisons from this point forward for the Tenant / Tenant’s Architect / Tenant’s General Contractor. Design questions, plan review, construction observation, and tracking of your project through the lease document close-out are handled by us. We look forward to working with your team.

The next required step is to disperse the attached design information and construction requirements to your perspective team members, the Architect and General Contractor.
Owner Architects Info Package to the Owner and the Owner’s Architect
Contractor Info Package dated XX.XX.XX to your General Contractor (and to your Architect if he is sending the project to bid).

Your team needs to be made aware that the Project Grand Opening is scheduled for MONTH XX, YEAR. The attached information identifies the minimum specific project requirements and steps for the design and construction phases. In addition, your consultants can reference the information to define appropriate professional fees for their provided services.

Immediately upon hiring the Architect and General Contractor please provide their contact information to us so we can follow up with them to keep the tenant store opening on target.

Plans should be submitted to the Building Department no later than MONTH XX (they have an X-week review time) if your store is to part of the Grand Opening on MONTH XX, which leaves X-weeks for store construction and merchandising. After MONTH XX, everyone must push harder to meet the MONTH XX Grand Opening date.

Regards,

Tenant Coordinator

Welcome Letter Example

Digital Design Criteria Manual

Michael Greeby, CDP, CRX, MCR
michael@workshop-mg.com
847-471-8776 - c
@workshopmg

Ben Wood, CDP, CRX
ben@greeby.com
423-314-7652 - c

Contact

General Notes

Tenant Design Review

TIP:
Focus review on points of
connection and transition.

Use a checklist, standard
notes and stamps.

1. Verify 

2. Notify

3. Schedule

Checklist Example

Kick-off Call:
Prelim package to LL:
LL prelim review:
Tenant revision:
LL prelim approval:
CDs commence:
CDs submitted for permit:
CDs out for GC bid:
CDs submitted for LL review:
LL review and approval of CDs:
Tenant Status Report Example

File System Example

Information
Documents
Correspondence
Tracking & Reporting

8. Systems & Tracking

Start the process with the right impression
Ease Tenant design and TC support

Welcome Letter
Lease Outline Drawing (LOD)
Tenant Design Criteria Manual / DDCM
Base Building Drawings
Collaboration Instructions

REVIEW

Second
MOST IMPORTANT
document

Key sections include:
PROPERTY, LL WORK, STOREFRONT, SIGNAGE, INTERIOR DESIGN, TECHNICAL, SUBMISSION & CONSTRUCTION

Well designed manuals provide critical information that is
EASY TO ACCESS AND USE

Use
NEW TECHNOLOGY
(ie, DDCM) to be efficient

The traditional TDCM is typically created using one of the following industry standard computer software programs:

REVIEW

The primary goal is to provide
TECHNICAL
and
LOGISTICAL
support of Leasing to accelerate deals

The construction lease exhibit establishes the
SCOPE OF WORK
for Landlord deliverables

Fast and accurate
BUDGET ESTIMATING
can make or break a deal

The lease abstract is a
POWERFUL TOOL
to be used in advance and during discussions with Tenants.
5. Leasing Support

Common Requested LL Modifications

Concrete Slab
Demising Walls
Storefront Glass Systems
Electrical Service Upgrade
HVAC RTU
Sprinkler Grid

Leasing Support

Modified Shell Estimating

Speed is everything

Time kills deals

Leasing Support

REVIEW

The Lease rules
EVERYTHING

The
BIG FOUR
terms are RENT, CAM, TA/TI, and LANDLORD WORK

TA/TI is a
FINANCING TOOL
used by Landlords and Leasing to assist Tenants open

There are
FIVE CATEGORIES
of Landlord Work – AS-IS, COLD DARK SHELL, MODIFIED SHELL, WHITE / VANILLA BOX, and BUILD-TO-SUIT / TURN-KEY


4. The Lease

Landlord Work

As-Is
Cold Dark Shell
Modified Shell
White / Vanilla Box
Build-to-Suit / Turn-key


The Lease

Landlord Work

WORK LETTER / EXHIBIT B
 
CONSTRUCTION LEASE EXHIBIT
Clarify expectations between the LL and Tenant regarding what the physical condition of the Premises will be upon Landlord Turn-over to expedite Tenant Acceptance.
 
Who does what scope of work?

The Lease

Tenant Allowance

TA/TI is an advance paid by the LL to the Tenant

Financing Method used by both parties to leverage the LL access to cash and generally better credit

Higher Rent and/or Lower Term are used to recover the investment made by the LL.

The Lease

The BIG 4

TENANT ALLOWANCE – It is intended to assist /off-set the cost for Tenant build-out construction. TC’s have FAIR influence as they often estimate Tenant build-out construction costs based upon prototype.

LANDLORD WORK - Scope and cost for LL to deliver premises per the lease and tenant criteria. TC’s have LARGE influence as estimate construction costs based upon Construction Lease Exhibit.

The Lease

The Big 4


RENT - The first number everyone talks about. TC’s have the LEAST amount of influence on this #.


CAM - The actual prorata cost to tenant for LL Maintenance of all center / bldg. common areas. TC’s have NO influence - it can be fixed or variable at cost.

4. The Lease

Follow-up to push the schedule

Get commitments for hard dates

Be realistic, but aggressive

Communicate frequently

Allow 2 to 10 hours
per Tenant

Don’t forget Signage

Review Phases

1. Preliminary Design  

2. Construction Documents

3. Revised Documents

4. Permit Set

Tenant Design Review

REVIEW

With so much information, a great
SYSTEM
is required

There are 2 goals –
COMMUNICATION
and
DOCUMENTATION

Work the system to stay
ORGANIZED

Always
COMMUNICATE, COMMUNICATE, COMMUNICATE

A great
TRACKING REPORT
will make your job infinitely easier and accelerate retail delivery


Tenant Tracker Example

Internal vs. External
- Tenant
- Leases
- Lease Plans
- LODs
- Landlord Drawings
- Tenant Design Criteria Manual
- TC Reports
- Progress Photos


6. Tenant Design Criteria
Lease Abstract

Delivery of Possession
Landlord’s Plans and Specs
Tenant’s Plans and Specs
Allowable Review Time
Possession Condition
Fit-out Duration
Substantial Completion
Opening / Commencement
Leasing Support
Mechanical
Electrical
Plumbing
Telephone & Data
Gas
Sprinkler & Fire Alarm
Construction Lease Exhibit

Structure
Floor Slab
Demising Walls
Service Door
Neutral Piers
Storefront

Other Important Items

Premises Delivery Date & Conditions of Acceptance
Co-Tenancy Who else needs to be open
Lease Commencement Everything gets started
Rent Commencement Income starts flowing
Term 5, 10, 15 years




Look for dangers that may
delay premises acceptance!

The Lease

NOT code review

NOT technical performance review

NOT constructability review

1. Conformance  

2. Compatibility

3. Coordination

4. Compliance


REVIEW

The Tenant Welcome Package
PASSES THE BATON
from leasing to retail delivery

Package includes:
Welcome Letter, LOD, TDCM/ DDCM, Base Building Drawings and Collaboration Instructions

A great Tenant Welcome Package gets the Tenant design and construction process
HEADED IN RIGHT DIRECTION
and
SAVES TIME LATER


6. Tenant Design Criteria

10 Critical Sections of a TDCM

1. Location
2. Property Description
3. Design Intent
4. Landlord Work
5. Storefront Criteria
6. Signage Criteria
7. Store Interior Criteria
8. Technical Criteria
9. Submission Requirements
10. Construction Rules & Regulations

What's in a TDCM?
6. Tenant Design Criteria

7. Welcome Package
8. Systems & Tracking
9. Tenant Design Review
8. Systems & Tracking

Web-based Platforms

Basecamp
USGN
QuickBase
Expesite
Evoco
ShareFile
Dropbox
Google
Box
BuzzSaw
Sharepoint

Tenant Status Report (TSR)
Landlord Construction Status Report
Tenant Contractor Deposit Summary
Weekly & Photo Report
Tenant Status Checklist
Others

Landlord Deliverables

work.letter

9. Tenant Design Review
8. Systems & Tracking
9. Tenant Design Review

Schedule with Tenant and/or
their architect

Keep it to 1-hour

Few things are more valuable

Kick-off call

Vision
Design Intent
Process / Schedule
FAQs
Space specific
Questions

Tenant Design Review

Design & Production Schedule

Jan 01
Jan 21
Jan 28
Feb 07
Feb 14
Feb 14
Apr 01
Apr 01
Apr 01
Apr 14


3 weeks
1 week
1 week
1 week

6 weeks


2 weeks

The 4 C's of Plan Review

Review Procedures

1. Title Sheet
2. Responsibility Schedule
3. Floor Plan (Construction Plan)
4. Fixture Plan
5. Finish Plan
6. Reflected Ceiling Plan
7. Storefront Elevation /
Sections
8. Interior Elevations
9. Wall Section
10. Details
11. Roof Plan
12. Mechanical Drawings
13. Plumbing Drawings
14. Electrical Drawings

5. Leasing Support

“A good plan today is better than the perfect plan tomorrow”
Stamps
Tenant Design Review

Name
Company
Hometown
Learning objective
$6 - 10 sf
$4 - 6 sf
$30 - 60 sf
$4 - 15k
$2 - 3k ton
$2 - 2.50 sf
http://openingcalc.workshop-mg.com
58 Steps
Example
LL Work:
concrete slab
drywall
storefront
HVAC
Example
LL Work:
concrete slab
drywall
storefront
HVAC
(1 ton / 300 sf)
(10' ht)
(20' ht)
130' x 10' = 1,300 sf x $40/sf =
$52,000
130' x 20' = 2,600 sf x $5/sf =
$13,000
3,000 sf / 300 = 10 ton x $2,000/ton =
$20,000
$100,000
TOTAL:
$33/sf
Full transcript