CW_Tech_Brochure

THOUGHT LEADERSHIP & INDUSTRY INTELLIGENCE View a complete list at cushwaketech.com or click on individual thumbnails below.

MARKET TRENDS & OVERVIEW Common Local Market Practice

OVERVIEW OF MARKET NORMS AND TRENDS – COMMON LOCAL PRACTICES There are several key concepts causing curiosity among today’s tenants. This is a Montreal-based example of today’s Market Norms and Trends. Cushman & Wakefield can provide similar perspectives on any global market your team is interested in.

Lease Term

In Quebec, most office lease terms for new transactions or renewals range from 3 to 10 years, with the most common term commitment being 5 years. Considering that Montreal is currently exhibiting a Tenant’s market & that ACME Company has high standards for their leasehold improvements, a longer term (such as 10 years) would undoubtedly uncover opportunities such as new constructions, build-to- suit projects as well as conversion of industrial buildings, all while keeping the costs relatively low. A longer term also increases negotiating leverage to build in flexibility into the lease agreement including the rights to expand & contract the space, rights of first refusal, termination options along with rights to assign and\or sublease and so on.

Rent Structure

A common practice in the market, when considering either institutionally or privately owned office buildings, is to have leases that are net-net to the landlord. This means the parties establish a minimum rent (Net Rent) and the Tenant shall pay all costs and expenses relating to the operation and maintenance of the building, the leased premises and/or the business carried on by the Tenant (known as “Additional Rent”). Landlords remain responsible for all structural elements of the building.

Rent Escalations

NET RENT The escalations of the Net Rent shall be negotiated and agreed upon by both parties in the Lease. For long-term leases, there are generally predetermined Net Rent increases, i.e. $15.00 Net (years 1-5) &

$16.00 (years 6-10) ADDITIONAL RENT

Tenants generally pay their proportionate share of the Property Taxes & Building Operating Expenses according to the Landlords’ audited financial statements. On average, the Additional Rent increases by 2 to 3 percent annually. Some landlords accept for a cap to be imposed on such augmentations, limiting the building operational expense increases to a max out percentage (generally 3-4%).

Security Deposits

A common practice of Landlords is to require a minimum deposit or prepaid rent equivalent to the first and last months’ Net Rent and Additional Rent plus taxes or more depending on the solvency of the Tenant. In the case of some large and reputable organizations like ACME Company, however, we have been successful in having such deposits excluded from lease agreements.

AUTHOR: Erik Langburt Senior Vice President, Investment Sales & Leasing +1 514 841-3818 erik.langburt@cushwake.com

cushwaketech.com cushmanwakefield.com

An Emerging Technology Advisory Group Publication

CRE TECH FOR DESK ALLOCATION, HOTELING & MEETING ROOM BOOKING This overview of several innovative CRE technologies is appropriate for occupiers of flexible workplace solutions and a mobile workforce. Now you can identify the right technology solutions for managing hot desking and conference room booking.

CRE TECH FOR DESK ALLOCATION, HOTELING & MEETING ROOM BOOKING An overview of the latest SaaS solutions which help clients allocate, & monitor, desk allocations (permanent and hoteling) & meeting room booking

SUZANNE MEHTA Building a Vision for Employee Engagement suzanne.mehta@cushwake.com

Suzanne leads the design and operationalization of the firm’s Employee Experience Program. The program helps our occupier clients establish a vision and strategy for enhancing user experience and service quality delivery in support of employee engagement, retention, and productivity.

Robin

Condeco

Teem

Essensys

• Robin software allows clients to schedule rooms and desks with integration across Google & Outlook calendars while provided real-time office maps and workplace analytics. • Robin integrates with digital meeting room signage via tablets and televisions and is scalable across enterprise- grade deployments

• Condeco helps clients manage meeting rooms, visitors, hospitality, services and video conferences across multiple locations and time zones. • Condeco Digitial Conference Room allows uses to instantly start a conference, schedule or release a room using PIN or RFID • Screens gather real-time information about how conference rooms are reserved and used and have auto-bumps for no shows.

• Teem provides space scheduling & management, visitor management, building wayfinding and workplace analytics. • Book conference rooms or desks through a mobile app, digital tablet display or voice activation • Integration with real-time occupancy sensors to support workplace analytics

• Software tailored for the coworking/flexible office industry, includes features specific to a flexible office manager such as move scheduler, WiFi manager/ stats, and support hub. • The software’s Space Publisher feature allows users to publish meetings rooms to online data aggregators and a space management tool to reserve and allocate desks and rooms on the fly

SEAN BUCKLEY Understanding & Implementing Tech Solutions sean.buckley@cushwake.com

At Cushman & Wakefield Sean advises clients on the Space & Workplace technology market landscape and trends. New products are analyzed and scored so that differentiators can be clearly communicated to interested clients. The level of engagement varies per client but can range from a simple phone call to confirm a client is on the right track in their own search to a full technology software selection project.

SaaS Solutions:

ELISA KONIK Managing Director, Brokerage & Strategic Services Chair, Emerging Tech Advisory Group elisa.konik@cushwake.com

Elisa Konik leads C&W’s Emerging Technology practice group, advising startups and high growth technology occupiers on their global real estate strategy. With a broad network across the globe, C&W’s Emerging Tech team has exceptional experience working with innovative tenants to find, negotiate and build cutting edge workplaces.

cushwaketech.com cushmanwakefield.com An Emerging Technology Advisory Group & Tenant Advisory Group Publication

Copyright © 2019 Cushman & Wakefield. All rights reserved. No warranty or representation, express or implied, is made to the accuracy or completeness of the information about the services contained herein, as Cushman & Wakefield does not own these services.

FLEXIBLE

DIRECT LEASE

FLEXIBLE WORKPLACE TO DIRECT LEASE ANALYSIS With our partnership you can formally evaluate a transition from a coworking or serviced office to a direct lease. This framework helps to qualify the quantitative and qualitative impact of long term traditional leases to help you identify the right inflection point for your portfolio’s growth.

Market Profile: Hong Kong, HK The accompanying analysis provides an estimated economic and qualitative comparative between our existing Flexible Workplace agreement (Managed or Serviced office) and a traditional Direct Office Lease. A direct lease alternative was chosen (10 min walk from current office) for representative pricing; however all terms are subject to negotiation and are estimates in nature.

Existing Office Obligation Address

Address XXX, XX Floor

Provider / Landlord

WeWork

Lease Expiry

8/31/20

RSF

1,000

The Workplace Team recommends evaluating Direct Lease alternatives in the range of 4K SF for a 3-5 year term commencing Sept 2020, in line with our current expiration.

Desks

18

Current Monthly Office Service Fees $USD

$XXX

Headcount – Current and Future Growth Projections:

2019 2020 2021 2022

36 Employees 40 Employees 44 Employees 38 Employees

18 Desks 20 Desks 22 Desks 24 Desks

2023

53 Employees

27 Desks

Note: 36 employees in market today at ratio of 2 Employees:Desk and a 10% per annum growth rate.

10 | TECHNOLOGY PRACTICE GROUP