C&W Formalizes Build-To-Suit Advisory Practice

5 Sep, 2007, New York, NY

Full service approach includes direct access to global capital markets; clients include corporations and developers

In response to increased build-to-suit activity from national and multi-national corporations and developers, Cushman & Wakefield has formalized a build-to-suit specialty practice and has begun offering its services to corporations and developers on a global basis.

“As a result of tightening real estate fundamentals nationally and globally, we have formalized a process that we have been executing on an as-needed basis for more than a decade,” said Jeff Shell, executive director, who heads up Cushman & Wakefield Build-To-Suit Advisory Services. “Our clients are increasingly demanding solutions to their most complex real estate requirements, and we are pooling the firm’s best resources to meet those requirements in the most effective and efficient manner.”

Lower vacancy rates and rising rental rates are fueling the trend toward build-to-suit activity on a national and global basis, according to Mr. Shell. When working directly on behalf of corporate users, Cushman & Wakefield separates the build-to-suit process into two basic functions: the delivery of a project and the capital necessary to underwrite the occupancy. “We expose both of those pieces to competition in the markets with all of the value created flowing back to our clients,” he said. “We can achieve rent (or equivalent) savings in the range of 10 to 20 percent.”

The services Cushman & Wakefield provides corporate clients through Build-To-Suit Advisory Services include in depth analysis of location alternatives; incentive negotiations; site selection and acquisition; selection and management of architects and engineers; selection and coordination of contractors and/or developers; identification, structuring and placement of capital; move-in and start-up assistance; facilities and property management, and access to global capital sources. Among Cushman & Wakefield’s many clients in the build-to-suit arena are Thomson Corporation, Procter & Gamble and Mazda.

Increasingly, the firm has been providing capital solutions services to developers, such as Hines, Opus, and H+M. Build-To-Suit Advisory Services provides capital markets expertise to developers for pre-sales or financing of build-to-suit projects. “Developers understand the substantial risks associated with waiting until project completion in order to secure the permanent capital solution. We provide the developer with advice on alternative structures and current pricing as they are competing for these deals and continue through execution of the permanent capital solution, which is often a pre-sale in today’s market,” said Mr. Shell. “Additionally, we can assist developers and their users with incentive negotiations, location decision analysis, site selection and other areas through an integrated services approach.”

The Cushman & Wakefield Capital Markets Group provides advice, execution, and investment management services to clients engaged in buying, selling, investing in, financing or building real estate. These services typically are provided to private and institutional owners and investors, as well as corporate owners and occupiers.

Cushman & Wakefield is one of the world’s largest commercial real estate services firms. Founded in 1917, the firm has 215 offices in 56 countries, and 12,000 talented professionals. Cushman & Wakefield delivers integrated solutions by actively advising, implementing and managing on behalf of landlords, tenants, lenders and investors through every stage of the real estate process. These solutions include representing clients in the buying, selling, financing, leasing and managing of assets. The firm also provides valuation advice, strategic planning and research, portfolio analysis, and site selection and space location assistance, among many other advisory services. To find out more about Cushman & Wakefield, please call 1-800-376-3133, or visit the firm’s Web site at www.cushmanwakefield.com.

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