Did We Give Away The Store? 2004s Major Corporate Lease Deals Robert D. Lane, Jr. and Eric J. Marcuson PBIs 8th Real Estate Institute December 8, 2004.

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Presentation transcript:

Did We Give Away The Store? 2004s Major Corporate Lease Deals Robert D. Lane, Jr. and Eric J. Marcuson PBIs 8th Real Estate Institute December 8, 2004

An Overview of 2004s Major Corporate Leasing Incentive Deals Leasing activity in 2004 Expiration of major leases in skyscrapers built in late 1980s Tenant-friendly market

Deciding to Move Why do companies look to move? Where do companies want to be? What kind of space are companies looking for?

Governmental Incentives Brief history; incentives rise to prominence Policy behind incentives and their development Incentives available at state and local levels

Pennsylvania Incentives Keystone Opportunity Zones Opportunity Grant Program Infrastructure Development Program Customized Job Training Program Machinery and Equipment Loan Fund PIDA Loans

Philadelphia Incentives Commerce Department and PIDC Tax Increment Financing Grants for Job Creation and Job Preservation Subsidized Loans

New Jersey Incentives Business Employment Incentive Program (BEIP Grants) Urban Enterprise Zone Program Business Relocation Assistance Grant (BRAG) Customized Training Program

Camden County Incentives Employee Recruitment Incentive Bonus Political Hotspot

Other States Incentives New York Empire Zone Program Industry-specific grants Vermont Economic Advancement Tax Incentive Program

The Process Meet with officials/request offer letter Negotiate and finalize offer Complete application Negotiate grant/loan agreement Receive grant/loan proceeds Complete follow-up requirements

Major Lease Transactions in 2004

Regional Action

2005 and Beyond

Did We Give Away The Store? 2004s Major Corporate Lease Deals Robert D. Lane, Jr. and Eric J. Marcuson PBIs 8th Real Estate Institute December 8, 2004