New Jersey Commercial Real Estate Andrew B. Zezas, SIOR President Business DRIVEN Real Estate Solutions Presented by: Andrew B. Zezas, SIOR Relationship Manager, Strategist, President REAL ESTATE STRATEGIES CORPORATION New Jersey April 15, 2005 Tenant Representation Services: Generate Greater Revenue and Build More Profitable Relationships

New Jersey Commercial Real Estate Andrew B. Zezas, SIOR President Business DRIVEN Real Estate Solutions Tenant Representation Services: Generate Greater Revenue and Build More Profitable Relationships

New Jersey Commercial Real Estate Andrew B. Zezas, SIOR President Business DRIVEN Real Estate Solutions Tenant Representation Services: Generate Greater Revenue and Build More Profitable Relationships

New Jersey Commercial Real Estate Andrew B. Zezas, SIOR President Business DRIVEN Real Estate Solutions Tenant Representation Services: Generate Greater Revenue and Build More Profitable Relationships

New Jersey Commercial Real Estate Andrew B. Zezas, SIOR President Business DRIVEN Real Estate Solutions Agenda Part One – Tenant Representation Services What Is Tenant Representation? Which Service Do You Offer? Transaction Brokers vs. Advisors - Who Hires Them? Competing Against Dual Service Brokers Required Traits Compensation Getting Hired Representation Agreement Are You Really…?

New Jersey Commercial Real Estate Andrew B. Zezas, SIOR President Business DRIVEN Real Estate Solutions Agenda Part Two – Tenant Rep Forum 3 Expert Panelists Questions & Answers Tenant Rep Stories Selection of “The Best Tenant Rep Story”

New Jersey Commercial Real Estate Andrew B. Zezas, SIOR President Business DRIVEN Real Estate Solutions What Is Tenant Representation?

New Jersey Commercial Real Estate Andrew B. Zezas, SIOR President Business DRIVEN Real Estate Solutions What Is Tenant Representation?

New Jersey Commercial Real Estate Andrew B. Zezas, SIOR President Business DRIVEN Real Estate Solutions What Is Tenant Representation?

New Jersey Commercial Real Estate Andrew B. Zezas, SIOR President Business DRIVEN Real Estate Solutions What Is Tenant Representation? Questions: Do Tenant Representatives Represent: Only Tenants? Corporate Occupant Buyers? Acquirers of office space only? Acquirers of industrial space? Acquirers of retail or other real estate? Landlords?

New Jersey Commercial Real Estate Andrew B. Zezas, SIOR President Business DRIVEN Real Estate Solutions What Is Tenant Representation? “Tenant Representative” is an incorrect term! Questions: Are you a Tenant Representative if you: dispose of corporate properties? Represent corporate property buyers?

New Jersey Commercial Real Estate Andrew B. Zezas, SIOR President Business DRIVEN Real Estate Solutions What Is Tenant Representation? If you represent: only companies seeking to acquire space, then you specialize in: Real Estate Acquisitions the full real estate interests of your corporate clients (acquisition, disposition, and advisory services) then you specialize in: Corporate Services

New Jersey Commercial Real Estate Andrew B. Zezas, SIOR President Business DRIVEN Real Estate Solutions What Is Tenant Representation?

New Jersey Commercial Real Estate Andrew B. Zezas, SIOR President Business DRIVEN Real Estate Solutions Which Service Do You Offer? Real Estate Acquisition Specialist Corporate Services Specialist Transaction Broker Advisor

New Jersey Commercial Real Estate Andrew B. Zezas, SIOR President Business DRIVEN Real Estate Solutions Which Service Do You Offer? Transaction Brokers Serve companies that: Have completed long range projections Understand their business and real estate needs Don’t require real estate advice Don’t require strategic planning services Have a basic knowledge of local business and real estate climate Are transaction oriented Know what they need and what their financial requirements are

New Jersey Commercial Real Estate Andrew B. Zezas, SIOR President Business DRIVEN Real Estate Solutions Which Service Do You Offer? Transaction Brokers Value Proposition: Market knowledge driven Have substantial transactional experience More traditional in their approach Understand pros and cons of buildings Offer expertise and track record Skilled Negotiators Understand leases Maintain relationships with other service providers Often engaged by real estate, facilities, mid-level Move quickly May also offer landlord services Can offer local, regional, or national services Commission based

New Jersey Commercial Real Estate Andrew B. Zezas, SIOR President Business DRIVEN Real Estate Solutions Who Hires Transaction Brokers? Entrepreneurs –Want to “make a deal” Corporations with structured real estate departments –Have defined business and real estate requirements

New Jersey Commercial Real Estate Andrew B. Zezas, SIOR President Business DRIVEN Real Estate Solutions Which Service Do You Offer? Advisors Serve companies that: Have not completed long range projections Do not fully understand the connection between their business and real estate needs Require real estate advice Require strategic planning services Have little knowledge of local business and real estate climate Are not transaction oriented Are uncertain of what they need and what their financial requirements Seek to manage risk Require guidance for intelligent decision making

New Jersey Commercial Real Estate Andrew B. Zezas, SIOR President Business DRIVEN Real Estate Solutions Which Service Do You Offer? Advisors Value Proposition: Similar expertise to Transaction Brokers Strategic planning Operational and financial analysis Business strategies as a foundation for real estate Analytical expertise Board savvy Often engaged by C-Level May not have local expertise Provide reports and deliverables Focus on minimizing corporate risk Commission and / or fee compensation

New Jersey Commercial Real Estate Andrew B. Zezas, SIOR President Business DRIVEN Real Estate Solutions Who Hires Advisors? Management oriented entrepreneurs Corporations without structured real estate departments Small to mid-cap companies Management team leadership Entrepreneurial companies with sophisticated owner / investors US operations of foreign-owned companies

New Jersey Commercial Real Estate Andrew B. Zezas, SIOR President Business DRIVEN Real Estate Solutions Which Service Do You Offer? Transaction Brokers and Advisors

New Jersey Commercial Real Estate Andrew B. Zezas, SIOR President Business DRIVEN Real Estate Solutions Which Service Do You Offer? Transaction Brokers and Advisors In a local, regional, or national markets can you be effective as both a: Landlord Representative and An Acquisitions Specialist / Corporate Services Specialist?

New Jersey Commercial Real Estate Andrew B. Zezas, SIOR President Business DRIVEN Real Estate Solutions Which Service Do You Offer? Transaction Brokers and Advisors Does Landlord Representation = Acquisitions Specialist / Corporate Services Specialist? Can You Provide Both Services… IN THE SAME TRANSACTION? NO!

New Jersey Commercial Real Estate Andrew B. Zezas, SIOR President Business DRIVEN Real Estate Solutions Competing Against Dual Service Brokers Property oriented brokers who also pursue acquisition assignments are Dual Service BrokersProperty oriented brokers who also pursue acquisition assignments are Dual Service Brokers Value propositions:Value propositions: –Better handle on the current market activity –Know other tenants in the market –Know what landlords’ bottom lines because they represent them –Better access to changes in market data and activity –Stronger landlord relationships –Chinese Wall

New Jersey Commercial Real Estate Andrew B. Zezas, SIOR President Business DRIVEN Real Estate Solutions Competing Against Dual Service Brokers

New Jersey Commercial Real Estate Andrew B. Zezas, SIOR President Business DRIVEN Real Estate Solutions Competing Against Dual Service Brokers Acquisitions or Corporate Service Specialists are: Not beholden to any property or landlord Aren’t interested in future opportunities to represent landlords’ property Have a binding legal, fiduciary, moral obligation to protect acquirer’s interests Only service line “All we do!” Reputation is on the line with every client and every project

New Jersey Commercial Real Estate Andrew B. Zezas, SIOR President Business DRIVEN Real Estate Solutions Required Traits Acquisitions or Corporate Services Specialist Minimum Market knowledge Track record – acquisitions Reputation Integrity, honesty Transactional creativity Negotiation skills Service provider relationships Respect

New Jersey Commercial Real Estate Andrew B. Zezas, SIOR President Business DRIVEN Real Estate Solutions Required Traits Acquisitions or Corporate Services Specialist Differentiation A defined process that can be built to support the client’s business objectives and clearly demonstrates that corporate decision-makers will: Be able to make intelligent decisions about real estate and their business Be informed of critical information in advance of deadlines and decision dates Feel confident that you will protect their interests and those of their company Know that you are skilled in representing acquirers of real estate

New Jersey Commercial Real Estate Andrew B. Zezas, SIOR President Business DRIVEN Real Estate Solutions Required Traits Acquisitions or Corporate Services Specialist Differentiation A defined process that can be built to support the client’s business objectives and clearly demonstrates that corporate decision-makers will: Know that they’ve engaged a professional of high caliber who is respected by his/her opponents and who commands authority in the market Receive recommendations from you as to additional service providers required to successfully and cost- effectively complete their project Trust in your ability to build and manage an effective team of service providers

New Jersey Commercial Real Estate Andrew B. Zezas, SIOR President Business DRIVEN Real Estate Solutions Required Traits Acquisitions or Corporate Services Specialist Differentiation A defined process that can be built to support the client’s business objectives and clearly demonstrates that corporate decision-makers will: Be required to expend as little time as possible Encounter few conflicts of interest Minimize personal and corporate risk Decrease likelihood of legal entanglements Know you’re not experimenting on their project Expect creative solutions to complex problems Be secure in your recommendations and guidance Feel confident recommending your solutions to senior management and the Board of Directors

New Jersey Commercial Real Estate Andrew B. Zezas, SIOR President Business DRIVEN Real Estate Solutions Required Traits Acquisitions or Corporate Services Specialist Differentiation A defined process that can be built to support the client’s business objectives and clearly demonstrates that corporate decision-makers will: Be enhanced by their relationship with you Achieve a flexible, productivity enhancing, real estate transaction that supports their business objectives and promotes corporate profitability

New Jersey Commercial Real Estate Andrew B. Zezas, SIOR President Business DRIVEN Real Estate Solutions Compensation Transaction Broker –Typical local market standard Advisor –Consulting fee Hourly Monthly retainer Flat fee Formula (Percentage of savings) –Commission Disclose your commission structure Demonstrate your value – Are you worth a discount?

New Jersey Commercial Real Estate Andrew B. Zezas, SIOR President Business DRIVEN Real Estate Solutions Compensation Disclose your commission structureDisclose your commission structure Demonstrate your value – Are you worth a discount?Demonstrate your value – Are you worth a discount? The more service(s) you offer, the more valuable you will be to your clientsThe more service(s) you offer, the more valuable you will be to your clients The more valuable you are, the less likely that they’ll devalue your service and seek compensation discountsThe more valuable you are, the less likely that they’ll devalue your service and seek compensation discounts Decide how much you service is worth and price it accordingly.Decide how much you service is worth and price it accordingly.

New Jersey Commercial Real Estate Andrew B. Zezas, SIOR President Business DRIVEN Real Estate Solutions Getting Hired Never sell an Exclusive!!! “Exclusive” means to exclude. Why would anyone want to exclude themselves from anything? Provide your clients with a representation agreement that memorializes the details of your relationship. If, by the time you present an agreement, you haven’t demonstrated the value you’ll provide…then, why would they hire you?

New Jersey Commercial Real Estate Andrew B. Zezas, SIOR President Business DRIVEN Real Estate Solutions Getting Hired Obstacles When the client: Thinks they’ll pay double commissions Won’t sign an agreement Prefers to use multiple brokers Would rather keep all options open Wants to work directly with landlords Has a relationship with current landlord Spouse sells houses

New Jersey Commercial Real Estate Andrew B. Zezas, SIOR President Business DRIVEN Real Estate Solutions Getting Hired Why Should Any Company Hire You? As an Acquisitions or Corporate Service Specialist, you offer: No (or few) conflicts of interest Concentrated effort with little or no distractions Elimination of properties that don’t meet client’s parameters Client’s ability to avoid seeing buildings twice No sales pressure from a broker who’ll only earn a living if the client selects a particular property Objective opinions about property, owners, etc. Opportunity for the client to even the sides Reduction or elimination of broker conflicts

New Jersey Commercial Real Estate Andrew B. Zezas, SIOR President Business DRIVEN Real Estate Solutions Getting Hired Why Should Any Company Hire You? As an Acquisitions or Corporate Service Specialist, you offer: Opportunity to get to a “deal” quicker Respect by landlords No allegiance to landlords Advise in decision-making Professional analyses, reports, deliverables Written recommendations Ask your client what could happen if they don’t engage professional services.

New Jersey Commercial Real Estate Andrew B. Zezas, SIOR President Business DRIVEN Real Estate Solutions Representation Agreement Never work without a written authorization agreement…Few executives do! Spell-out your obligations to your client and your client’s obligations to you Your written agreement should clearly state the parties “agreement” to avoid misunderstandings Protect your client and yourself Two honest people can misunderstand each other!

New Jersey Commercial Real Estate Andrew B. Zezas, SIOR President Business DRIVEN Real Estate Solutions Are You Really An Acquisition or Corporate Services Specialist? Do you promote yourself / your company accordingly? What does your website say? What does your business card say? What do your promotional materials say? Do you have property signs all over town? Do you talk about properties you sold or clients you represented? Do you have an appropriate track record? Do you represent landlords?

New Jersey Commercial Real Estate Andrew B. Zezas, SIOR President Business DRIVEN Real Estate Solutions Summary

New Jersey Commercial Real Estate Andrew B. Zezas, SIOR President Business DRIVEN Real Estate Solutions Tenant Representation Services: Generate Greater Revenue and Build More Profitable Relationships

New Jersey Commercial Real Estate Andrew B. Zezas, SIOR President Business DRIVEN Real Estate Solutions Tenant Rep Forum 3 panelists will make brief presentations about their Acquisitions and / or Corporate Services models Open Discussions (Q&A) Best Tenant Rep Stories Award

New Jersey Commercial Real Estate Andrew B. Zezas, SIOR President Business DRIVEN Real Estate Solutions Tenant Rep Forum

New Jersey Commercial Real Estate Andrew B. Zezas, SIOR President Business DRIVEN Real Estate Solutions Tenant Rep Forum

New Jersey Commercial Real Estate Andrew B. Zezas, SIOR President Business DRIVEN Real Estate Solutions Gregory P. Schenk The Schenk Company Office Specialist Columbus, Ohio

New Jersey Commercial Real Estate Andrew B. Zezas, SIOR President Business DRIVEN Real Estate Solutions J. Leonard Caldeira The Staubach Company Industrial Specialist Chicago, Illinois

New Jersey Commercial Real Estate Andrew B. Zezas, SIOR President Business DRIVEN Real Estate Solutions Donald C. Catalano Corporate Realty Consultants Office Specialist Comack, NY CCIM, MCR, SIOR

New Jersey Commercial Real Estate Andrew B. Zezas, SIOR President Business DRIVEN Real Estate Solutions Tenant Rep Forum Gregory P. Schenk Office Specialist The Schenk Company Columbus, Ohio J. Leonard Caldeira Industrial Specialist The Staubach Company Chicago, Illinois Donald C. Catalano Office Specialist Corporate Realty Consultants Comack, New York