Office Leasing

TST Real Estate – Office Leasing

The RiverEdge Project

RiversEdge is an example of how Preotle, Lane, a real estate developer, used a TST Leasing Model to determine the lease terms needed to attract an anchor tenant for its office building outside of Boston. The prospective tenant was Progenika, a biotech company, looking for new space.

 RiverEdgeBest

Model Structure

The model includes 2 submodels: Property and Terms.

OfficeLeasingREModelStructure

TST Property Comparison Model

The developer concluded that it had the second best building behind Kendall Square but could win the deal if it priced the lease at $19/square foot effective rent, signficantly lower that of Kendall Square.   You can see the building and its 2 comps and the ThinkSHEET ranking of RiversEdge relative to the comps below.

RiverEdgePropertyModel99

Property Metrics

The Property Metrics included:

  • Location
  • Return on investment
  • Decision-maker motivations
    • Productivity
    • Brand
    • Employee satisfaction
  • X-factors

plus submetrics for location (commuting convenience, interest group proximity, prestige, public transportation), and building (design, space flexibility, amenities and infrastructure.

RiversEdge

RiversEdge5

One Kendall Square

Rivers Edge 1 Kendall Square

One Cambridge Center

Rivers Edge 1 Cambridge Center

One Marina Park Drive

RiversEdge 1 Marina Park Drive

2% Property Difference Vs Kendall Square: Pro: Building; Con – Location