*April 2020 – Dec 2021
of relocation deals were to a higher office class than tenant was occupying.*
To obtain a Class A space, tenants paid an average range of $48-$52 PSF gross – 36%-38% higher than their existing rents in Class B and some C space.
73%
Quality assets thriving
.
.
.
Investment in communal areas and upgrading vacant space driving successful ROI
‘Quality’ narrative continuing to drive success more than ‘value’/’discount’ on inferior space
East Loop, high-quality assets that are well capitalized will be the primary aspirational competition for 55 East Monroe.
Flight to Quality...
creates an opening for 55
Successful leasing and management needs to adapt to this trend
Home
Placemaking
Performance
Leasing
Performance
REMS
Why Colliers
Appendix
Video
What Tenants Want
Flexible seating to foster innovation
Lobby space that is social rather than clinical
Technology infrastructure to support on-site + remote workforce
An image that supports the brand
Management Team/Ownership with vested interest in tenant health and well-being
Beyond the “well” workplace, tenants want to thrive
Home
Placemaking
Performance
Leasing
Performance
REMS
Why Colliers
Appendix
Video
1- Define and create an
arrival experience
2- Re-direct traffic
accordingly
3- Connect the bottom
to the top
4- Art fosters
community – in the
neighborhood
5- Project 77
Performance is driven by big ideas:
“…East views are shockingly good”
“…Location is neither here nor there”
“Invisible since the resi split off”
“The definition of stagnant”
“Needs a cool factor”
“Why would I include this?”
“I don’t remember the last time I’ve been through the building. It always gets cut from
the first round of surveys, due to lack of amenities and location.”
“Parking is a huge asset”
“Can’t remember the last time I showed it”
Here's what the market thinks
Market Perception
Home
Placemaking
Performance
Leasing
Performance
REMS
Why Colliers
Appendix
Video
Property Management
Staffing Plan for whole building
Executive Summary
Tenant Engagement
Engineering
Construction Management
Operations Opportunities
Accounting
& Expense
Savings
EXECUTIVE SUMMARY
Established Colliers/PGIM Chicago Operating Team Will Integrate
55 and 22
- Working with Sarah Downey currently, expand and integrate our existing 22 West Washington team
- Already fully proficient in PGIM standards, policies and procedures, PSP annual budgeting, reporting and valuation requirements
- Led from the Chicago office, managing 10.2M SF in 43 PGIM assets nationally with 12 PGIM asset managers and analysts
Recent Successful High-Rise Transition From An Operating Partner: One Two Pru
- Three blocks north of 55 East Monroe, recent transition of One Two Pru (Prudential Plaza), a 2.2 million SF Class-A office property
- Replaced client operating partner of four years as property manager
- 21-day transition, onboarding 30 on-site staff with a seamless human resources, IT and vendor transition
- Ample local and national transition team experience and bench strength
We Already Live in the
Neighborhood
- First Service Residential (a Colliers sister company) managing Park Monroe at 65 E Monroe with Kirk Sullivan (8 years on-site)
- Shared coordination of the dock, elevator, façade, fire panel, generator, HVAC and plumbing systems
- Local presence over 3 million SF including 200 South Michigan Avenue, 18-24 South Michigan Avenue, One Two Pru and 333 North Michigan Avenue
- Vision, tools and experience to take amenities and tenant service to the
next level
In-house Scale, Expertise, Procedures and Training
Longevity
Depth & Expertise
Training
& Safety
Wellness & Sustainability
Payroll
Efficiency
Collective Bargaining and Union Relations
Local Engineering
Transition and
Leadership Team
Fully audit and evaluate the building systems for best practices, opportunities, major repairs, maintenance, life cycle and capital planning.
Phil Stafford
Chief Operating Officer
Chicago
Jerry Grotthus
Director of Engineering
Chicago
Mike Lynch
Chief Engineer
22 West Washington
Chicago
Jeff Schneider
Consultant, Capital Projects
Former Colliers Director of Engineering & Capital Projects
Chicago
National Engineering Transition and Leadership Team
Jeff Gerwig
National Director
Engineering & ESG Strategy | U.S.
Jason Dinan
Director
National Services & Operations | U.S.
Engineering / Management Systems
Wellness Strategies
HVAC
• Outside air / refresh rates / humidification
• Filtration
• Bi-Polar ionization
• Data transparency in monitoring: Indoor
air quality, carcinogens, carbon dioxide (Cyclone
Energy Group - 22 W Washington air monitoring)
• Elevator exhaust / supply
Low and No Touch Systems
• Bluetooth security access control
• Elevator destination dispatch
• Touchless door operation, plumbing fixtures
Daylighting and Outdoor Spaces
• Lighting automation and maximizing
natural daylight
• Tenant amenity development of facilities and
services with mobile app connectivity
Third Party Certifications
• Well Building / Fitwell
• RESET (One Two Pru – Largest N.A. Office Award)
Property inspection
records
Vendor and tenant insurance certificate tracking
Detailed preventative maintenance & asset repair tracking
Tenant service & communication
Automated work order generation, dispatch & retrieval
Historical data tracking, trending, and reporting
Property Management
Office Location
Adams Entrance
Interior Signage, Finishes, Lighting
Adams Entrance
Lobby Traffic Flows
Operations Opportunities
65 E Monroe Shared Systems / Management Partnership
Tenant
Engagement
Property inspection
records
Detailed preventative maintenance & asset repair tracking
Automated work order generation, dispatch & retrieval
Historical data tracking, trending, and reporting
Vendor and tenant insurance certificate tracking
Tenant service & communication
Construction Management
Facades & Curtainwall
HVAC
Parking Garage Phased Renovation
Access Control & Visitor Management
Escalators
Colliers
Chicago Current CBD Portfolio
Accounting
Expense Savings
Expense Savings
Administrative Payroll
Staffing plan eliminates above-market legacy General Manager, supplementing with a hospitality-driven
property manager under long-time leader, Dave Solaya
Engineering Payroll
Colliers directly employs 109 operating engineers in
Chicago and will onboard 55 East Monroe staff,
eliminating all third-party ABLE Engineering fees
Management Fee
Original Proposal of 1.25% or an Alternate Proposal of
0.99% plus a PGIM-dedicated on-site accountant with
a $100,000 budget (reimbursable and within savings of
the General Manager change)
Accounting
In-house accounting services included within our
property management fee, eliminating third-party accounting firm usage, with dedicated Accounting
Manager and team familiar with PGIM, BNY Mellon,
Real Foundations and VTS processes
Lease Administration
None, saving from current practice
CAM/TAX Reconciliation Fees
None, saving from current practice
4/2022 Income Statement Review
Interpolating four months of data into a 12-month
annual total provided obviously flawed figures:
• $11.16 PSF of CAM per CoStar appears slightly high to marketplace however not totally unreasonable for the
age and size of the asset
• Utilities appear to be high however the
CenTrio/Enwave district cooling contract will skew this category high, hopefully offset with reduced engineering, HVAC and R&M charges
• Elevator R&M: With all new modernized systems, this amount annualized seemed slightly high
• Administrative Expenses seem extremely high
however may include a recovery of property
management office and amenity space gross rent
recovered from the tenant base
Home
Placemaking
Performance
Leasing
Performance
REMS
Why Colliers
Appendix
Video
Colliers Chicago Tenant Engagement Programming
Colliers Chicago Tenant Engagement Programming
Colliers Chicago Tenant Engagement Programming
Colliers Chicago Tenant Engagement Programming
Sustainability
Emerging Technologies
Joe Degliomini
Director of Capital Projects
15 years’ experience
Don Jenkins
Director of Capital Projects
32 years’ experience
Davor Engel
Senior Project Manager
35 years’ experience
Case Study:
500 W Madison Amenities
The result:
We Already Live in
the Neighborhood
Leadership on the ground and in the trenches.
We just did this
successfully
Big Ideas +
Colliers Think Tank
Full alignment
of interests
Our people are
the secret sauce, and the 22 team
Is on board.
Why Colliers:
More high-level expert input, and better solutions for our clients.
We’re Bringing 22 to 55
Home
Placemaking
Performance
Leasing
Performance
REMS
Why Colliers
Appendix
Video
Colliers Leasing and Management Synergy
Relationships: We’re Bringing 22 to 55
55 Tenant Connectivity
Local Broker Engagement
Colliers National Tenant Reach
Next level tenant
engagement, amenities
and technology
Direct Initial Outreach to Target Tenants
ESG Expertise
Seamless Integration with PGIM
Best in Class Engineering
& Wellness
Leadership
Specific
cost-conscious
common area
strategies
Customer Experience Expertise.
We know what is needed for today’s highly discerning customers.
Overview
Home
Placemaking
Performance
Leasing
Performance
REMS
Why Colliers
Appendix
Video
Joell Juracka
Account Director
Client Services
Chicago
Susan Lehman
Managing Director Client Services
Chicago
Jeannine Reed
Managing Director Operations
Chicago
Matt Musselman
Senior Director
Office Positioning
& Marketing
U.S.
Team Experience
Michael Lirtzman
EXc. VICE PRESIDENT
& PRINCIPAL
Chicago
Marina Zelenkova
Vice President
Chicago
Day to Day Leasing Team
Phil Stafford
Chief Operating Officer
REMS
Chicago
Lloyd Berry
Managing Director,
REMS & Asset
Management
Chicago
Agents of Change
We’ve done this before
500 W Madison
Prudential Plaza
200 W Madison
We’ve done this before
Home
Placemaking
Performance
Leasing
Performance
REMS
Why Colliers
Appendix
Video
*April 2020 – Dec 2021
of relocation deals were to a higher office class than tenant was occupying.*
To obtain a Class A space, tenants paid an average range of $48-$52 PSF gross – 36%-38% higher than their existing rents in Class B and some C space.
73%
Quality assets thriving
.
.
.
Investment in communal areas and upgrading vacant space driving successful ROI
‘Quality’ narrative continuing to drive success more than ‘value’/’discount’ on inferior space
East Loop quality assets that are
well-capitalized will be primary focus
and competitors for 55 East Monroe.
Flight to Quality...
but with a lot of options
