May 28, 2013
Synergy Blog Admin

Synergy Real Estate Group, Corporate Advisory Completes 3rd Real Estate Requirement for NASA

NASAJohn Galaxidas, President/CEO of Synergy announced it completed its 3rd commercial real estate requirement for NASA.

NASA recently retained the services of Synergy Real Estate Group, Corporate Advisory (www.synreg.com) headquartered in San Diego, California to help them identify a hard to find space.

The facility had to be a specific depth, width, height and triangular in shape. NASA’s contractor L’Garde (www.LGarde.com), who is building the largest solar sail space craft of its kind in Tustin, California, originally hired a local tenant representation firm to help them find the space.

NASA's Solar Sail project

After spending Six (6) months with another tenant rep firm, NASA – L’Garde switched to Synergy which took only two (2) weeks to identify the property.

Why does NASA use Synergy over any other Tenant Representation firm?

“We identify space no other firm can find because we contact every Property Owner, Landlord Listing Broker and Corporation to find missed lease and sublease opportunities. Most Tenant Rep firms rely 100% on commercial listing services to identify space. At Synergy, we track every space in the local submarkets daily and will be sure that you are made aware of all possibilities, as many are not marketed publicly,” said John Galaxidas.

At Synergy Real Estate Group, Corporate Advisory (www.synreg.com), we only represent Tenants and are dedicated to our role as the Tenant Advocate. “Synergy is made up of principal-level professionals, so all work is handled by top negotiators in the industry,” said Galaxidas.

Synergy’s most prestigious clients include NASA, Hitachi, Farmers Insurance, HP, DELL, Cisco Systems and Charles Schwab. Synergy does not charge for its service. “Since all leasing fees associated with a building are budgeted for and paid by the landlords, you will incur no costs while having expert representation to insure that you achieve the best lease terms possible,” said Galaxidas.

How Synergy differentiates itself from other firms:

  • We only work for Tenants, never Landlords: 100% Tenant Focused
  • Tremendous leverage and clout with Landlords
  • Value our client’s trust & confidence in our work
  • No Cost for our Service. Listing Agent splits their fee to represent your interests in the transaction
  • We guarantee we will secure the lowest cost on space

“We remove the conflict of interest inherent when a listing broker tries to represent both the tenant and landlord, whereby we never represent Landlords, only Tenants to secure you the best location and deal on space,” said Galaxidas.

“We do this through a proven process of first identifying all possible opportunities, and then negotiate exclusively for our client’s needs which allows us to get landlords to align themselves closer to our client’s interests,” said Galaxidas.

We do what no other Tenant Representation firm does:

  • We inventory the market on a daily basis.
  • We specialize in identifying hard to find “under-marketed” and “un-listed” opportunities.
  • We contact every property owner/listing broker on your behalf to uncover “off-market” lease opportunities.
  • When it comes time to negotiating the transaction, we draft and send out proposals on your behalf, leveraging one Landlord against the other to secure the best lease terms and rate on the space.

“At the end of the day, you receive a complete value added service which helps you avoid missed opportunities + saves you time and money since we do all the leg work for you,” said Galaxidas.

Jan 29, 2013
Synergy Blog Admin

Synergy Real Estate Group Assists Hitachi Subsidiary AccSys Technology in Leasing Space for Its New Ion Accelerator Test Facility

Fremont, CA January 28, 2013

HitachiJohn Galaxidas, President and CEO of Synergy Real Estate Group, Corporate Advisory, announced that the company had assisted Hitachi subsidiary AccSys Technology, Inc. in leasing a 12,000 square foot industrial property to be used as a testing facility for its ion linear accelerators. The deal continues Synergy’s prominent role representing high-technology clients in Silicon Valley and the San Francisco Bay Area.

Adam Sass, Synergy’s Vice President for the San Francisco Bay Area, led the search for a property that met the specialized operational needs of AccSys’s advanced linear accelerator technology.

“AccSys was planning a test facility for our ion linear accelerators, which are widely used in such medical applications as PET scans and Proton Beam Therapy for cancer,” said Marjan Zand, Quality Assurance Manager at AccSys. “As you can imagine, particle accelerators require a lot of power, and Adam Sass of Synergy was able to quickly and accurately identify the industrial properties in our target geographic area that offered the combination of electrical service, sufficient space, secure location and other facility requirement for our test operations,” she added.

“It’s a rare opportunity and a real privilege to work with a company whose technology does so much good, and finding them the right location for their test operations was incredibly satisfying,” said Sass.

After multiple property tours coordinated by Synergy, AccSys found the right location for its test facility at 47730 Westinghouse Drive, Fremont, California, at the eastern edge of Silicon Valley. Boasting 1600 amps of 3 phase industrial power and 100% HVAC, temperature-controlled facilities, it was the ideal environment for testing AccSys’s linear accelerators. An added benefit was the easy commute from AccSys headquarters in Pleasanton, California.

To differentiate itself from other commercial real estate firms, Synergy never represents landlords, only tenants. There is no cost to clients for its services. “The heart of our business is providing in-depth market knowledge, expert property search services, and skilled negotiation to our clients,” said Galaxidas. “Since landlords pay our brokerage fees, our clients receive professional representation by our tenant representatives at no added cost to themselves.”

For AccSys Technology, choosing Synergy’s services resulted in the right property at the right price. “Synergy’s team proved efficient and reliable in managing the leasing process from start to finish. We would highly recommend their services to other technology companies seeking commercial space in the Bay Area,” said Zand.

AccSys Technology is the world’s leading commercial producer of rf ion linacs (radio frequency ion linear accelerators) for medical, industrial and research applications. Founded in 1985 as a design and manufacturing company, AccSys specializes in the development, production, installation and servicing of compact ion linacs using its patented linac technology. AccSys is dedicated to providing the highest quality and most reliable commercial ion linac systems to meet the needs of its customers. For more information on AccSys Technology, Inc., please visit the AccSys web site at http://www.accsys.com. AccSys has been an affiliate of Hitachi, Ltd. since 2002 and now wholly owned.

Synergy Real Estate Group, Corporate Advisory is the largest group of independent commercial real estate tenant representation brokers in North America. Headquartered in San Diego, California, Synergy has over 120 associate offices throughout the US, Canada, Mexico, UK, India and China. For more information about Synergy Real Estate Group, Corporate Advisory, please visit their web site: http://www.synreg.com or call: (888) 979-7787.

Sep 24, 2012
Synergy Blog Admin

Los Angeles Office Rates Still Flat Q3 2012

By John Galaxidas

CEO/President

Synergy Real Estate Group, Corporate Advisory (www.synreg.com)

The Los Angeles Class A office leasing market continues to remain flat in Q3 2012. Office leasing activity (as measured by the total square foot-age of new leases and lease renewals executed) was 34% below average quarterly leasing activity in 2011.

The availability rate for Class A office space continues to hover slightly above 19%, the same rate for the past 2.5 years. To put this in perspective, Los Angeles office rental rates bottomed out at 12% in 2006 and peaked at 19.9% in 2010, average office availability is now flat at 18.9% in 2012.

The only place in Los Angeles where rental rates have decreased slightly is in the Westside where the average asking rates for Westside Class A Office Space is $2.87 per month, 1.40% lower than 12 months ago.

Westside Los Angeles Office Space

Beverly Hills: 137 Locations and Subleases
Sizes: 1,599 Sqft to 105,000 Sqft
Class A Starting at $1.99/Sqft/Month
Class B Starting at $1.95/Sqft/Month

Brentwood: 12 Locations and Subleases
Sizes: 1,697 Sqft to 24,185 Sqft
Class A Starting at $2.00/Sqft/Month
Class B Starting at $1.75/Sqft/Month

Century City: 29 Locations and Subleases
Sizes: 1,764 Sqft to 42,976 Sqft
Class A Starting at $2.00/Sqft/Month

Cheviot Hills: 45 Locations and Subleases
Sizes: 1,734 Sqft to 26,826 Sqft
Class A Starting at $2.30/Sqft/Month
Class B Starting at $1.65/Sqft/Month

Culver City: 69 Locations and Subleases
Sizes: 1,975 Sqft to 156,371 Sqft
Class A Starting at $1.75/Sqft/Month
Class B Starting at $1.65/Sqft/Month

Malibu: 8 Locations and Subleases
Sizes: 1,700 Sqft to 18,000 Sqft
Class A Starting at $3.25/Sqft/Month
Class B Starting at $3.10/Sqft/Month

Mar Vista: 12 Locations and Subleases
Sizes: 1,917 Sqft to 15,214 Sqft
Class A Starting at $2.25/Sqft/Month
Class B Starting at $1.61/Sqft/Month

Marina Del Rey: 28 Locations and Subleases
Sizes: 1,800 Sqft to 33,653 Sqft
Class A Starting at $2.10/Sqft/Month
Class B Starting at $1.69/Sqft/Month

Palms: 20 Locations and Subleases
Sizes: 2,000 Sqft to 17,581 Sqft
Class A Starting at $1.95/Sqft/Month
Class B Starting at $1.40/Sqft/Month

Pico Robertson: 15 Locations and Subleases
Sizes: 1,680 Sqft to 19,932 Sqft
Class A Starting at $2.10/Sqft/Month
Class B Starting at $1.65/Sqft/Month

Santa Monica: 94 Locations and Subleases
Sizes: 1,845 Sqft to 95,113 Sqft
Class A Starting at $1.95/Sqft/Month
Class B Starting at $1.30/Sqft/Month

Sawtelle: 39 Locations and Subleases
Sizes: 1,935 Sqft to 54,000 Sqft
Class A Starting at $2.21/Sqft/Month
Class B Starting at $1.90/Sqft/Month

Venice: 27 Locations and Subleases
Sizes: 1,900 Sqft to 16,000 Sqft
Class A Starting at $2.75/Sqft/Month
Class B Starting at $2.59/Sqft/Month

West Los Angeles: 83 Locations and Subleases
Sizes: 1,800 Sqft to 35,304 Sqft
Class A Starting at $1.50/Sqft/Month
Class B Starting at $1.50/Sqft/Month

Westwood: 24 Locations and Subleases
Sizes: 1,713 Sqft to 51,972 Sqft
Class A Starting at $1.95/Sqft/Month
Class B Starting at $1.75/Sqft/Month

Downtown Los Angeles asking rates have increased 5% over the past four quarters. The average asking rates for all submarkets have remained relatively flat for the past 10 quarters after falling off from a high of $3.01 in 2008.

Downtown Los Angeles Office Space

Fashion District: 10 Locations and Subleases
Sizes: 1,750 Sqft to 133,700 Sqft
Class B Starting at $0.85/Sqft/Month

Little Tokyo: 1 Location and Subleases
Sizes: 3,000 Sqft to 28,000 Sqft
Class B Starting at $0.60/Sqft/Month

LA CBD – Financial District: 97 Locations and Subleases
Sizes: 1,808 Sqft to 481,395Sqft
Class A Starting at $1.50/Sqft/Month
Class B Starting at $1.25/Sqft/Month

South Park: 29 Locations and Subleases
Sizes: 2,000 Sqft to 48,964 Sqft
Class A Starting at $1.59/Sqft/Month
Class B Starting at $1.25/Sqft/Month

Warehouse – Wholesale District: 12 Locations and Subleases
Sizes: 3,449 Sqft to 71,446 Sqft
Class A Starting at $2.25/Sqft/Month
Class B Starting at $1.10/Sqft/Month

The remainder of Los Angeles submarkets is at or experienced a slight increase in availability. Average asking rates for Class A space across Los Angeles submarkets increased to $2.69 per month, 2.3% higher than 12 months ago.

“Los Angeles rental rates will not always stay flat, they will likely increase in the coming years,” said John Galaxidas, CEO/President of Synergy Real Estate Group, Corporate Advisory, the largest network of Independent Tenant Advisors in North America with offices in Downtown Los Angeles, Inland Empire, Irvine and San Diego. “Now is an opportune time to renew your lease securing a lower rental rate or relocate to higher quality, more cost effective space,” said Galaxidas

With a Tenant Broker you can feel confident that you are being presented every possible opportunity in the market while securing the lowest price possible on space, a virtue that tenant advisors at Synergy Real Estate Group prides themselves on providing to their clients.

No Cost for our Service

The best part using a Tenant Rep is there is no cost associated with our service. Tenant Brokers get compensated only when the deal closes. The listing agent who represents the Property Owner splits the commission with the Tenant Broker when the deal is consummated.

Uncover “Off-Market” Opportunities

Not only do we have access to every commercial listing in the market, we inventory the market on a weekly basis, “uncovering “off-market” opportunities.

When it comes to negotiating a lease or purchase contract, we will put out proposals on your behalf leveraging, one Landlord against the other to secure the best terms and rate on space.

Tenant representatives are becoming more valuable than ever. With the upturn in the Los Angeles market, as the economy rebounds and demand increases, businesses need to be strategic in the negotiation process.

If you are seeking assistance relocating, acquiring, disposing, subleasing and/or renegotiating your next space, contact Synergy Real Estate Group at: 323-776-3344 or visit our web site at: www.LosAngelesOfficeSpace.net.

Jul 27, 2012
Synergy Blog Admin

World’s Priciest Office Locations

A semi-annual real estate industry survey released the most expensive office markets world-wide. Overall, occupancy costs increased by an average 3.6% worldwide led by Asia-Pacific at 7.8%, Americas at 5.0%, and EMEA at 0.4%. 80 markets experienced increase in occupancy costs, while 24 markets occupancy costs decreased, and 29 markets remained stable.  The most costly office markets have characteristics, which include a diversified economic base, limited vacant institutional quality space and strong currencies.

Occupancy cost refers to rent, local taxes and service charges.

1. Hong Kong (Central), Hong Kong
$248.83 per square foot annually

Hong Kong is the number one location for global office occupiers, has meager land for development, leading to the highest office rents.
While at the top of the list, Hong Kong experienced the largest annual decline of the markets in the survey, at -17.2%. This can be attributed to increasing pressure on the global financial services industry, which makes up a large majority of tenants. Some of these firms have consolidated space requirements leading to increased availability in the central business district of Hong Kong.
The demand for office space is decreasing brings the astronomical rent prices closer to Earth. Hong Kong is one of the most volatile markets, it was the first market to show recovery in 2009, and it’s the first now to show the world’s economic slow down.

2. London (West End), United Kingdom
$186.49 per square foot annually

London’s West end experience a 4.7% year-over-year increase
West End – formerly the world’s most expensive – slowed last year after a rapid 31% climb in 2010, allowing offices in Hong Kong to become the world’s priciest.

3. Tokyo, Japan
$180.76 per square foot annually

Tokyo occupancy costs climbed 7%, landing it at the second most expensive city in Asia this year. Two years prior, Tokyo was the most expensive city for office space in the world, followed by London and Hong Kong.

4. Beijing (Jianguomen), China
$166.89 per square foot annually

Rent for Beijng office space soared 49.4% in the past year – the largest annual change of occupancy costs for all markets. The increase in price can be attributed to vacancy rates reaching below 5%, increasing rental prices due to supply shortages. Beijing’s rise was driven by strong demand from domestic financial institutions, combined with lack of available space on Finance Street, which is 6th on the list.

5. Moscow, Russian Federation
$158.72 per square foot annually

Moscow experienced the largest increase in costs for the Europe, Middle East & Africa region as its office space costs grew by 19.1%. This increase was driven by strong tenant demand in the central business district, where vacancy is relatively low and new development is extremely limited.

32nd on the list is Los Angeles, California
$77.41 per square foot annually

For the first time in years Los Angeles vacancy rates have dropped slightly. Los Angeles County slipped to 18.6% from 19.1% in last year’s second quarter. This was the first year-to-year vacancy decline since the second quarter of 2007, explaining the increase in occupancy costs. However, this trend does not signal that landlords’ troubles are nearly over. Most markets are considered quite soft, which places tenants are in a strategic bargaining position.

Tech companies have been increasing their tenancy in Los Angeles, making Santa Monica and Venice’s occupancy rates decrease. Tenants have been also occupying nearby areas such as Culver City and Playa Vista, where office space is more plentiful and rents are cheaper.
Downtown has also experience an increase, after years of a weak market, attributed to downtown becoming a growing residential neighborhood with multiplying recreational options such as bars, restaurants and professional sports. With efforts such as LA Live and recent renovations of plazas, tenants are not moving out of the evolving area.
On the other hand, vacancy in older office buildings near Los Angeles International Airport, continually rise, topping 35% in the second quarter.

Feb 13, 2012
Synergy Blog Admin

Drop in San Diego Office Space Vacancies

For the first time since 2007, the commercial office space vacancy rate for San Diego has dropped below the 14% mark.

In the fourth quarter of 2011, the San Diego office leasing vacancy rate dropped to 13.8 percent, the lowest it had been since it was at 14 percent in the third quarter of 2010.

The San Diego office rates still have a long way to fall, if it is to approach its recent low of 8.4 percent, which it hit in 2005, however it has already come a long way from its high of 15.3 percent in the first quarter of 2010.

The San Diego commercial real estate vacancy rate is still slightly higher than the national average, which currently sits at 13 percent, down from 13.2 percent in the third quarter and 13.5 percent from the year before.

The rental rate for San Diego office space however held almost constant from the third to fourth quarter, moving down one cent to $25.40, and for the year, was down from $26.05.

With San Diego office vacancy rates falling, one would expect office rental rates to start inching down but this is far from the case.

Over the last two years, vacancy rates have been on a wild “up and down” roller coaster ride, said John Galaxidas, President, Synergy Real Estate Group, Corporate Advisory, the largest group of independent tenant representatives in North America.

As we enter into the Presidential election year of 2012, vacancy rates will inch down creating a slight uptick in San Diego office rental rates, eventually leveling off or decreasing again slightly by end of fourth quarter of 2012.

So, if you are seeking to secure a great rental rate on San Diego office space, now is the time to either renegotiate your current lease or relocate to nicer, more cost effective office space.

At Synergy Real Estate Group, Corporate Advisory (www.synreg.com) our goal is to serve as the Tenant’s Advocate and resource to companies seeking commercial space in the San Diego area by providing them with detailed market information and local expertise to better understand the local commercial real estate market.

This is a no-cost, no-obligation service to your company to help you determine if you can save money cutting your facility cost.

We understand the San Diego office rental market and since we only work with tenants we are able to show more properties than typical listing brokers and we avoid any conflicts of interest during the negotiation process. If you’re unsure of the benefits of using a tenant representative, call us at: 888-979-7787 or visit our web site at www.synreg.com and we will be glad to go over the benefits our company provides relative to other firms.

Jan 17, 2012
Synergy Blog Admin

Synergy Real Estate Group, Corporate Advisory Helps NASA Hubble Lease New 120,000sf Office Space

John Galaxidas, President and CEO of Synergy Real Estate Group, Corporate Advisory, announced that the company assisted NASA – Hubble / TRAX International in leasing 120,000 square feet of office space for 450 staff located at 7700 Hubble Drive in Greenbelt, Maryland, a suburb of Washington, DC.

NASA Press ReleaseGREENBELT, Md., Jan. 5, 2012 /PRNewswire/ — John Galaxidas, President and CEO of Synergy Real Estate Group, Corporate Advisory (www.synreg.com) announced it assisted NASA – Hubble / TRAX International in leasing 120,000 square feet of office space for 450 staff located at 7700 Hubble Drive in Greenbelt, Maryland, a suburb of Washington, DC.

Synergy Real Estate Group, Corporate Advisory is the largest group of independent exclusive commercial real estate tenant representation brokers in North America headquartered in San Diego, California with over 120 associate offices throughout the US, Canada, Mexico, UK, India and China.

John Galaxidas, with the assistance of Debra Stracke Anderson, President and CEO of Sloan Street Advisors, co-brokered with Synergy to represent NASA Hubble in the transaction.

Debra Stracke Anderson was recently selected by the Mid Atlantic Real Estate Journal as one of “The Best Deals of 2010” where the transaction with NASA Hubble / TRAX International was formally announced.

To differentiate itself from other Commercial Real Estate firm, Synergy never represents Landlords, only Tenants. There is no cost for its service.

“Our clients range from small businesses to large Fortune 500 firms. We provide clients with a report containing all property sites that meet our clients parameters with photos, floor plans, help them to select the best alternatives, and then negotiate aggressive terms that take advantage of today’s multiple concessions and incentives,” said Galaxidas.

“Synergy tracks every office space and warehouse space in the local submarkets daily, including subleases, so it’s much easier for us to do the background work for our clients to be sure our clients become aware of all possibilities, as many are not marketed publicly. Further, since all commercial real estate leasing fees associated with a building are budgeted for and paid by the landlords, our clients incur no costs while having expert representation to insure that they achieve the best lease terms possible,” said Galaxidas.

For more information about Synergy Real Estate Group, Corporate Advisory, please visit their web site: www.synreg.com or call: (888) 979-7787.

Jan 16, 2012
Synergy Blog Admin

What is a Tenant Representative?

What is a Tenant Representative? A Tenant Representative or Tenant Advisor is a licensed real estate agent, broker or brokerage firm that specializes in exclusively representing Tenants.

A Tenant Advisor spends a great deal of time learning about the needs and goals of a business and then applies that knowledge to extensively research and analyze specific markets in order to locate properties that are optimal for the needs of their client.

Generally agents or brokers who have a significant amount of property listings cannot or will not provide this level of service, because they are busy producing market reports for the property owners that they service, pursuing more listing opportunities or conducting meetings with their owners, etc. Not to say they are not qualified to do so, rather this is not a core focus of their business.

Once a property has been identified by a business this is where the Tenant Representative’s market research pays off. Since the Tenant Advisor is an advocate for the business/future tenant. This is where the Tenant Advisor can use their market knowledge such as recent lease comps, amount of vacant properties in the market area, amount of new supply coming online in the future, etc. and other information in order to establish negotiating points so that the best lease rates and terms are achieved for their client.

Alignment of interests is another reason why a Tenant Rep should be used when a business is seeking out new a new location for the business operations or for a specific division of the company. The reason being is that a Tenant Advisor looks at all property listings in the market area and will not be predisposed to only look or even favor their own listings, whether they are in the clients desired market are or not.

Here’s an illustration of what I mean. When a big commercial real estate brokerage firm is getting anywhere from 10 to 50 plus listings a year from institutional real estate owners it’s hard to say that their interests won’t be naturally aligned with the owners who give them a ton of work year in, and year out. Whereas the Tenant Rep Brokers are not getting those listings and would rather work with the tenant and therefore will unequivocally fight for the tenants best interest when it comes to finding optimal properties for their business, and negotiating the best possible rates and terms for the lease.

So business owners it’s in your best interest to use a Tenant Representative. You’re going to find an individual and/or firm who is going to be dedicated to your pursuit and treat you like a number one priority. In addition, tenant representation agreements generally come at no cost to the tenant, since commissions paid to the Tenant Broker are paid by the landlord.

For more information about Synergy Real Estate Group, Corporate Advisory, please visit our web site: www.synreg.com or call: 888-979-7787.

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