Mike Lipsey Presents - Winning more tenant rep assignments

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Winning More Tenant Rep AssignmentsMike Lipsey

mailto:[email protected]

Want This Slide Deck? [email protected] Copyright © The Lipsey Company • 407.774.2558

Best Tenant Rep Database Wins

• Associations –Big Brothers/Big Sisters, United Way, Economic Development Counsel

• Affiliations – Home Health Care, Merchants Associations, Bar Association

• Vertical – CareerOneStop.com


CareerOneStop.ORG


# IndustryFastest Growing Industries

Percent Change 2008 2018

1 Management, scientific, and technical consulting services 1,008,900 1,844,100 83%

2 Services for the elderly and persons with disabilities 584,700 1,016,100 74%

3 Offices of physical, occupational and speech therapists, and audiologists 251,300 392,100 56%

4 Data processing, hosting, and related services 261,600 399,400 53%

5 Home health care services 958,000 1,399,400 46%

6 Specialized design services 143,100 208,700 46%

7 Computer systems design and related services 1,450,300 2,106,700 45%

8 Offices of mental health practitioners (except physicians) 59,100 84,400 43%

9 Other general merchandise stores 1,490,100 2,096,800 41%

10 Medical and diagnostic laboratories 218,500 305,500 40%

11 Offices of all other health practitioners 94,300 129,100 37%

12 Veterinary services 296,500 399,300 35%

13 Lessors of nonfinancial intangible assets (except copyrighted works) 28,200 37,900 34%

14 Waste treatment and disposal 100,900 135,400 34%

15 Offices of physicians 2,265,700 3,037,900 34%

16 Personal care services 621,600 819,100 32%

17 Facilities support services 132,700 173,600 31%

18 Other information services 133,600 174,700 31%

19 Offices of chiropractors 117,900 153,900 31%

20 Software publishers 263,700 342,800 30%

21 Support activities for road transportation 85,600 110,900 30%

22 Support activities for air transportation 167,200 216,600 30%

23 Plumbing, heating, and air-conditioning contractors 982,900 1,267,100 29%

24 Independent artists, writers, and performers 50,400 64,800 29%

25 Offices of dentists 818,800 1,052,200 29%

Fastest Growing Industries (National)



# IndustryAverage Weekly

WagesAverage Annual

Wages1 Sports Teams and Clubs $3,557 $184,954

2 Commodity Contracts Dealing $3,407 $177,178

3 Securities Brokerage $3,118 $162,155

4 Miscellaneous Intermediation $3,073 $159,808

5 Portfolio Management $2,969 $154,364

6 Offices of Other Holding Companies $2,806 $145,904

7 Trust, Fiduciary, and Custody Activities $2,749 $142,937

8 Securities and Commodity Exchanges $2,749 $142,956

9 Commodity Contracts Brokerage $2,711 $140,981

10 Investment Banking and Securities Dealing $2,641 $137,333

11 Open-End Investment Funds $2,596 $134,989

12 Crude Petroleum and Natural Gas Extraction $2,592 $134,791

13 Electronic Computer Manufacturing $2,536 $131,891

14 International Trade Financing $2,514 $130,698

15 Natural Gas Liquid Extraction $2,405 $125,058

16 Electronic Auctions $2,351 $122,237

17 Independent Artists, Writers, and Performers $2,311 $120,157

18 Miscellaneous Financial Investment Activities $2,249 $116,939

19 Computer Terminal Manufacturing $2,230 $115,948

20 Software Publishers $2,225 $115,676

21 Investment Advice $2,213 $115,074

22 Reinsurance Carriers $2,212 $115,047

23 Flavoring Syrup and Concentrate Manufacturing $2,186 $113,681

24 Internet Publishing and Broadcasting and Web Search Portals $2,155 $112,061

25 Custom Computer Programming Services $2,109 $109,685

Highest Paying Industries (National)





1 Biomedical engineers 3,100 5,600 81%

2 Biochemists and biophysicists 4,800 7,100 48%

3 Medical scientists, except epidemiologists 26,200 38,500 47%

4 Personal and home care aides 346,500 504,700 46%

5 Home health aides 54,300 78,000 44%

6 Physician assistants 8,100 11,500 42%

7 Separating, filtering, clarifying, precipitating, and still machine setters 7,300 10,200 40%

8 Physical therapist aides 5,900 8,100 37%

9 Electrical and electronics repairers, powerhouse, substation, and relay 1,100 1,500 36%

10 Veterinary technologists and technicians 9,400 12,700 35%

11 Veterinarians 5,600 7,500 34%

12 Physical therapist assistants 4,200 5,600 33%

13 Financial examiners 3,100 4,100 32%

14 Computer software engineers, applications 80,900 106,100 31%

15 Emergency medical technicians and paramedics 14,300 18,700 31%

16 Medical assistants 76,100 99,400 31%

17 Medical equipment repairers 4,000 5,200 30%

18 Radiation therapists 2,000 2,600 30%

19 Skin care specialists 4,100 5,300 29%

20 Surgical technologists 8,900 11,500 29%

Fastest Growing Industries (CA)



# IndustryAverage Hourly

WagesAverage Annual

Wages

1 Anesthesiologists $80.00+ $166,400+

2 Athletes and Sports Competitors N/A $166,400+

3 Chief Executives $80.00+ $166,400+

4 Dentists, All Other Specialists $80.00+ $166,400+

5 Internists, General $80.00+ $166,400+

6 Judges, Magistrate Judges, and Magistrates $80.00+ $166,400+

7 Obstetricians and Gynecologists $80.00+ $166,400+

8 Oral and Maxillofacial Surgeons $80.00+ $166,400+

9 Physicians and Surgeons, All Other $80.00+ $166,400+

10 Psychiatrists $80.00+ $166,400+

11 Surgeons $80.00+ $166,400+

12 Family and General Practitioners $77.37 $160,900

13 Pediatricians, General $75.69 $157,400

14 Orthodontists $72.68 $151,200

15 Lawyers $68.12 $141,700

16 Architectural and Engineering Managers $66.68 $138,700

17 Natural Sciences Managers $66.48 $138,300

18 Computer and Information Systems Managers $64.42 $134,000

19 Marketing Managers $63.15 $131,400

20 Dentists, General $61.02 $126,900

Highest Paying Industries (CA)


Want More? Contact Us at [email protected] Copyright © The Lipsey Company • www.lipseyco.com • 407.774.2558

Selecting Market•Validate Through Additional Research•NOT Aggressively Being Pursued•Determine Depth of Group• Identify Logical Process • Fit for your Team•GROWTH INDUSTRIES: 250 – 500 Prospects (Sweet Spot)

Identifying Emerging Markets





1 Management, scientific, and technical consulting services 1,008,900 1,844,100 83%

2 Services for the elderly and persons with disabilities 584,700 1,016,100 74%

3 Offices of physical, occupational and speech therapists, and audiologists 251,300 392,100 56%

4 Data processing, hosting, and related services 261,600 399,400 53%

5 Home health care services 958,000 1,399,400 46%6 Specialized design services 143,100 208,700 46%

7 Computer systems design and related services 1,450,300 2,106,700 45%

8 Offices of mental health practitioners (except physicians) 59,100 84,400 43%

9 Other general merchandise stores 1,490,100 2,096,800 41%

10 Medical and diagnostic laboratories 218,500 305,500 40%

11 Offices of all other health practitioners 94,300 129,100 37%

12 Veterinary services 296,500 399,300 35%

13 Lessors of nonfinancial intangible assets (except copyrighted works) 28,200 37,900 34%

14 Waste treatment and disposal 100,900 135,400 34%

15 Offices of physicians 2,265,700 3,037,900 34%

16 Personal care services 621,600 819,100 32%

17 Facilities support services 132,700 173,600 31%

18 Other information services 133,600 174,700 31%

19 Offices of chiropractors 117,900 153,900 31%

20 Software publishers 263,700 342,800 30%

21 Support activities for road transportation 85,600 110,900 30%

22 Support activities for air transportation 167,200 216,600 30%

23 Plumbing, heating, and air-conditioning contractors 982,900 1,267,100 29%

24 Independent artists, writers, and performers 50,400 64,800 29%

25 Offices of dentists 818,800 1,052,200 29%

Fastest Growing Industries (National)






1 2







List Grabber (Building A Database)

• Grab Content from Online Directories• Import into Excel and CRM Systems



Tier 1

Tier 2

Tier 3

Tier 4Major Account – Association/ Affiliations

Direct Mail – The Perfect Call

Article with hand written note

Brochure – USB

Mailer – Postcard – Notes

E-Touch – E-Gift – E-Comp – SEO

Lipsey’s 55

Admin/CRM Manager

Admin/ Marketing Manager

Associate Broker

Senior Broker

Senior Broker

Copyright © The Lipsey Company • www.lipseyco.com • 407.774.2558

Lipsey’s 55“My Clients are my friends and my friends are my Clients” – Tom Joyce

CUSTOMER

1. NAME _______________________________ NICKNAME ____________________________2. COMPANY NAME ___________________________________________________________________3. COMPANY ADDRESS _________________________________________________________________4. HOME ADDRESS ____________________________________________________________________5. TELEPHONE: BUSINESS ________________________ CELL _______________________6. BIRTH DATE ________________ PLACE ________________________________________________ 7. HAT SIZE _____________ SHOE SIZE ______________ SHIRT SIZE _______________

EDUCATION

8. HIGH SCHOOL ______________________________________________________________________9. COLLEGE __________________________________________________________________________10. COLLEGE FRATERNITY/SORORITY___________________SPORTS______________________________11. COLLEGE EXTRACURRICULAR ACTIVITIES ________________________________________________12. MILITARY SERVICE __________________________________________________________________



FAMILY

13. SPOUSES NAME ___________________________ OCCUPATION ____________________________14. SPOUSES INTERESTS ________________________________________________________________15. ANNIVERSARY _____________________________________________________________________16. CHILDREN, IF ANY, NAMES/AGES ______________________________________________________17. CHILDREN'S COLLEGE EDUCATION (IF APPLICAPLE) ________________________________________18. CHILDREN'S INTERESTS ______________________________________________________________

BUSINESS BACKGROUND

19. CAREER BACKGROUND (Most recent first)COMPANY____________________________________________________________________________LOCATION____________________________________________________________________________TITLE____________________________________DATES_______________________________________

COMPANY____________________________________________________________________________LOCATION____________________________________________________________________________TITLE____________________________________DATES_______________________________________



BUSINESS BACKGROUND

20. OFFICE DÉCOR _____________________________________________________________________21. ASSOCIATIONS / AFFILICATIONS________________________________________________________22. INTERVIEWS OR RECENT ARTICLES _____________________________________________________23. WHAT BUSINESS RELATIONSHIP DOES HE/SHE HAVE WITH OTHERS IN OUR24. COMPANY? ___________________________________________________________________________

WHO ARE THEY? ____________________________________________________________________25. WHAT OTHER PEOPLE IN OUR COMPANY KNOW THE CUSTOMER? ___________________________26. TYPE OF CONNECTION _______________ NATURE OF RELATIONSHIP__________________________27. WHAT DO YOU FEEL IS HIS/HER LONG RANGE BUSINESS OBJECTIVE? __________________________

__________________________________________________________________________________28. WHAT DO YOU FEEL IS HIS/HER IMMEDIATE BUSINESS OBJECTIVE? ___________________________

__________________________________________________________________________________29. WHAT DO YOU THINK IS THE BEST OPPORTUNITY TO WORK WITH THIS CLIENT?

__________________________________________________________________________________



SPECIAL INTERESTS

30. CLUB, PROFESSIONAL ASSOCIATIONS OR SERVICE CLUBS (Masons, Kiwanis, etc.)_____________________________________________________________________________________

31. POLITICALLY ACTIVE? ________________ PARTY _______________________________________

32. ACTIVE IN COMMUNITY? _______ HOW? ________________________________________________33. SENSITIVE ITEMS NOT TO BE DISCUSSED WITH CUSTOMER (i.e.: Divorce, AA Member, etc.)

__________________________________________________________________________________34. ON WHAT SUBJECTS (OUTSIDE OF BUSINESS) DOES THE CUSTOMER HAVE STRONGFEELINGS? _________________________________________________________________________

LIFESTYLE

35. FAVORITE PLACES FOR LUNCH____________________ __________________ _______________DINNER____________________ __________________ _______________

36. FAVORITE ITEMS ON MENU ____________________ ___________________ _____________________________________________ __________________________ __________________________



LIFESTYLE

37. DOES CUSTOMER OBJECT TO HAVING ANYONE BUY HIS/HER MEAL? __________________________38. HOBBIES AND RECREATIONAL INTERESTS ________________________________________________39. SPECTATOR SPORTS INTEREST: SPORTS AND TEAMS _______________________________________40. ARE THEY INTO CARS? ________ _______________________________________________________41. CONVERSATIONAL INTERESTS _________________________________________________________42. WHAT ADJECTIVES WOULD YOU USE TO DESCRIBE THE CUSTOMER? __________________________

__________________________________________________________________________________43. WHAT IS HE/SHE MOST PROUD OF HAVING ACHIEVED? ____________________________________

__________________________________________________________________________________44. WHAT DO YOU FEEL IS CUSTOMER'S LONG RANGE PERSONAL OBJECTIVE?

__________________________________________________________________________________45. WHAT DO YOU FEEL IS THE CUSTOMER'S IMMEDIATE PERSONAL GOAL? ______________________

__________________________________________________________________________________



THE CUSTOMER AND YOU

46. WHAT ARE THE PRIORITIES OF THE CUSTOMER'S MANAGEMENT? ______________________________________________________________________________________________________________

47. WHAT SERVICE LINES CAN YOU SUGGEST? _______________________________________________48. FINANCIAL METRICS: EARNINGS PER SHARE _____________ NOI ______________

FUNDS FROM OPERATIONS ___________ CASH FLOW _____________ NPVF________49. DO THEY SEE THE BIG PICTURE OR DETAILS? _____________________________________________



THE CUSTOMER AND YOU50. COGNITIVE STYLE:

COGNITIVE

STYLE

DEFINITION YES / NO

EXTRAVERT Processing information through social interaction, schedule more face to face meetings

vs sending memos and written communication

INTROVERT Develops ideas and makes decisions in isolation, responds after reflection, prefers

written form of communication to presentations / meetings

SENSING Focuses on details, learns experientially, “knows” something because she/he has seen or

experienced it

INTUITIVES Learns theoretically, sees similarities between two concepts, “knows” something because

it is a logical deduction or extension of a theory/concept

THINKING Decides analytically by examining facts, logical, objective, examines cause and effects

beliefs to make decisions

FEELING Decides on the basis of feeling, uses logic to support feelings, relies on the affective

component of attitude over cognitive component

JUDGING Primary emphasis is on making decisions and coming to closure, Prefers order and

structure, Like to finish one task before starting another, Plans activities entirely before

commencing

PERCEIVING Primary emphasis is on perceiving, or gathering of information, Constantly looking for

new information before making decision, Moves from one project to another, Prefers to

remain flexible and avoid fixed plans, to keep options open



THE CUSTOMER AND YOU

51. BEST WAY TO COMMUNICATE? BUSINESS LINE _____________ CELL ____________ EMAIL _______52. DO THEY USE SOCIAL MEDIA? WHICH ONES? _____________________________________________53. DO YOU HAVE A MUTUAL COLLEAGUE/FRIEND? CAN THEY INTRODUCE YOU? __________________54. COMPANY’S MISSION STATEMENT

____________________________________________________________________________________________________________________________________________________________________

55. WHAT ARE THIS YEAR’S 3 MOST IMPORTANT OBJECTIVIES FOR THE CLIENT? ______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

*See Attached Run Clear Worksheet – This should be completed after Lipsey’s 55 and before a Sales Presentation

Excerpts taken from Mackay 66 – Mackay Envelope Corporation Minneapolis, MN Copyright 1983

RUN CLEAR WORKSHEET

Category Description

R Resources

U Urgency

N Needs

C Causes

L Loyalty

E Expectations

A Authority

R Revenue

RUN CLEAR WORKSHEETCategory Description Score

R 1 2 3 4 5

U 1 2 3 4 5

N 1 2 3 4 5

C 1 2 3 4 5

L 1 2 3 4 5

E 1 2 3 4 5

A 1 2 3 4 5

R 1 2 3 4 5

Total Range 8 – 40 ___

RUN CLEAR WORKSHEET

Category Description Score

R 40% Leveraged. 1 2 3 4 5

U Needs to sell by 4th Quarter. 1 2 3 4 5

N Net Leased Property or little management required. 1 2 3 4 5

C Tired of day to day management. 1 2 3 4 5

L No relationship with other brokers. 1 2 3 4 5

E Access to buyers, sell in 4 months. 1 2 3 4 5

A Managing Partner will seek input from Limited Partners. 1 2 3 4 5

R Will pay market fee. 1 2 3 4 5

Total Range 8 – 40 32


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Establishing I-RRR and C-RRR (Private Companies)

Users in the United States• www.BizStats.com – Free Financial Tools and

Business Statistics• www.LipseyCo.com – Detailed Financial

Information for a Fee

Users in the Canada• StaCan.GC.CA – Canadian Business Statistics• Offers Online Training and Technical

Support


http://www.bizstats.com/

http://www.lipseyco.com/

Identifying I-RRR’s








Subjective & Economic Considerations

1. Subjective Considerations• Location• Building Age• Amenities

2. Economic Considerations• Client’s Business Model• Rent to Revenue Ratio’s• Dollars to Occupy Ratio


*Factors to be rated from 1 – 5 by tenant, with 5 being the best.

Subjective Considerations

Architecture

Lobbies

Corridors

Restrooms

Elevators

Signage

Cleanliness

Other Tenant

Amenities

Area

Location

Total

300 W Adams 190 S La Salle 29 N Wacker DR


Calculating Dollars to Occupy

I-RRR (Industry Rent to Revenue Ratio)• Industries Average Revenue Dedicated to

Rent

C-RRR (Client’s Rent to Revenue Ratio)• Client’s Revenue Dedicated to Rent

DTOR (Dollars to Occupy Ratio)• I-RRR ± Other Expenses ± Market

Conditions



I-RRR (Industry Rent to Revenue Ratio)*Annual Gross Revenue = Projected Base Rent

(Example) 4.3 (I-RRR) * 500,000 (Annual Gross Revenue) = Projected Base Rent

* After Year 1, Increase Annual Gross Revenue by 8%

Contract Year Annual Gross Revenue I - RRRProjected Base

Rent

2015 $5,000,000 4.30% $215,000

2016 $5,400,000 4.30% $232,200

2017 $5,832,000 4.30% $250,776

2018 $6,298,560 4.30% $270,838

2019 $6,802,445 4.30% $292,505

Projected Base Rent



I - RRR

O/E Other Operating Expenses

M/C Market Conditions

DTOR Dollars To Occupy Ratio

5

2

2

9

+

+

=

Calculating Dollars to Occupy


Dollars to Occupy Ratio

Contract Year


2015

2016

2017

2018

2019

Present Value

Divide by Lease Term

Divide by Usable SF

Annual Gross

Revenue

Base Rent

Dollars to

Occupy

5 M

5.4 M

5.832 M

6.3 M

6.8 M

210,000

226,800

244,944

264,539

285,702

450,000

486,000

524,000

566,870

612,219

Base Rent

Total DTO

Base Rent

Total DTO

Base Rent

Total DTO

Dollars to Occupy Ratio

Contract Year


2015

2016

2017

2018

2019

Present Value

Divide by Lease Term

Divide by Usable SF

Annual Gross

Revenue

Base Rent

Total DTO

Base Rent

Total DTO

Base Rent

Total DTO

Base Rent

Dollars to

Occupy

Real Estate

Mike Lipsey Presents - Winning more tenant rep assignments