A few of the tools we anticipate utilizing in the lease negotiations would include Point of Indifference, Net Effective
Return, and Landlord Valuation analyses:
Point of Indifference calculates the tenant’s breakeven point by taking into consideration the
remaining obligation and the cost to relocate into the market at the time of expiration. This identifies
the tenant’s highest per square foot price they could pay while remaining indifferent to renewing or
relocating. Similarly, the landlord’s breakeven analysis calculates the lowest per square foot rate a
landlord would be willing to receive while remaining indifferent to restructuring the tenant’s lease or
going to a new market tenant. This analytical tool is very effective in a lease renegotiation scenario
because it illustrates to the tenant how aggressive of a deal the incumbent landlord must offer to
compel the tenant to renew early versus waiting until expiration and relocating or renewing at the
then market terms.
Net Effective Return assists us in benchmarking where owners are structuring deals in the
marketplace based on the returns they have received from other transactions. We can leverage our
extensive database of comparable transactions to strategically negotiate the landlord to a low-end
market transaction. The importance of this analytical tool is magnified in a rising market.
Landlord Valuation reviews the retention ratio and probability an owner placed on each tenant
upon purchasing the building and allows us to develop a strategy as to what extent the landlord is
willing to go to retain a tenant. Having an understanding of the landlord’s pro-forma gives us unique
insight into the landlord’s motivation and allows us to negotiate the transaction with those goals in
mind.
Additionally, we work with our Capital Markets team to understand the impact a market cap rate, rental rate and
length of lease term may have to a landlord. We have included screen shots of a representative financial analysis
in the designated section in Scout
7.2 Indicate if your financial reporting could be imported into Zendesk
lease accounting tools such as NetSuite or Hyperion. In the comments,
please list the different lease accounting tools your financial reporting
could be imported into.
Yes. We apply data warehouse and data integration best practices so that we can join non-standard or third-
party data with standard data for reporting and data analysis consistency. In addition, reports can be exported
to a variety of formats and system types, including: Excel, Word, PDF, Oracle, Hyperion, Tableau, Cognos, etc.
User-friendly, our RED technology platform integrates and ‘cross references’ all data streams, giving you a bigger
view of the portfolio and what is happening within it. This enables you to develop real estate strategy as well as
manage your buildings. Our technology platform features a system agnostic portal that will connect with any
application. The ability for integration with your systems allow retention of your existing technology. JLL systems
provide seamless integration and can easily handle large real estate data sets, sophisticated data modeling and
complex calculations.
JLL supports data transfer on demand, as well as scheduled transfers. Transmissions can be set up as automated
or manual. Data transfer between systems can range from periodic “flat file” uploads to business logic triggered
database transfers. Our team will work with yours on any proposed interfaces to ensure that the interfaces meet
your requirements and to properly test interfaces prior to implementation. In addition, data transfer between
systems can range from periodic “flat file” uploads to business logic triggered database transfers. Our team will
work with yours on any proposed interfaces to ensure that the interfaces meet your requirements and to properly
test interfaces prior to implementation.