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.
Model Structure
The model includes 2 submodels: Property and Terms.
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.
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
One Kendall Square
One Cambridge Center
One Marina Park Drive
