Did We Give Away The

Store? 2004’s Major Corporate Lease

Deals

Did We Give Away The

Store? 2004’s Major Corporate Lease

DealsRobert D. Lane, Jr. and Eric J. Marcuson

PBI’s 8th Real Estate InstituteDecember 8, 2004

An Overview of 2004’s 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? 2004’s Major Corporate Lease

Deals

Did We Give Away The

Store? 2004’s Major Corporate Lease

DealsRobert D. Lane, Jr. and Eric J. Marcuson

PBI’s 8th Real Estate InstituteDecember 8, 2004