Promoting Cyclists’ Rights in Ontario Cleveland Bike Summit.
Bike summit mattgriffin_061615
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Distributed 6/16/2015 Financial Justification* for Bike Amenities Presentation and concept by Matt Griffin, Pine Street Group LLC *Used for Seaboard Building (landlord justification); presented at the 2015 Seattle Employers Bike Summit, 6/12/15 Assumptions: 1. It’s harder to justify investing in and building bike amenities in a small building, especially relative to larger buildings. 2. There’s no opportunity cost to space for bikes. Example: $90K investment in bike amenities reduces risk of revenue lost and/or provides revenue gain. total building commercial sq. ft. 50,000 sq. ft. area for two restrooms with showers 130 sq. ft. storage rent rate in $/sq. ft./yr. $15/sq. ft./yr. annual rent (2 restrooms) $ 1,950 rounded rent (2 restrooms) $ 2,000 cap rate 5% value $ 40,000 construction cost $ 50,000 total of opportunity cost and actual cost $ 90,000 tenant -- who said would not renew without bike amenities 6,000 sq. ft. same for tenant who won't come without bike amenities rent rate in $/sq. ft./yr. $30/sq. ft./yr. annual rent $ 180,000 first justification risk of 4 months vacancy if lease terms not met $ 60,000 TI costs at $5/sq. ft. (actual would be $30/sq. ft.) $ 30,000 total $ 90,000 second justification desired amenities produces higher occupancy 1% total building commercial sq. ft. 50,000 sq. ft. average rent rate in $/sq. ft./yr. $30/sq. ft./yr. annual rent $ 1,500,000 marginal rent $ 15,000 Value $ 300,000 third justification desired amenities produces higher rent 1% total building commercial sq. ft. 50,000 sq. ft. average rent rate in $/sq. ft./yr. $30/sq. ft./yr. annual rent $ 1,500,000 marginal rent $ 15,000 Value $ 300,000 Notes: 1) The three justifications are mostly additive. 2) Tech tenants are key to downtown growth and more likely to require bike storage/showers. 3) Showers also are amenity for running crowd.
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Transcript of Bike summit mattgriffin_061615
Distributed 6/16/2015
Financial Justification* for Bike Amenities Presentation and concept by Matt Griffin, Pine Street Group LLC *Used for Seaboard Building (landlord justification); presented at the 2015 Seattle Employers Bike Summit, 6/12/15 Assumptions:
1. It’s harder to justify investing in and building bike amenities in a small building, especially relative to larger buildings.
2. There’s no opportunity cost to space for bikes. Example: $90K investment in bike amenities reduces risk of revenue lost and/or provides revenue gain. total building commercial sq. ft. 50,000 sq. ft.
area for two restrooms with showers 130 sq. ft.
storage rent rate in $/sq. ft./yr. $15/sq. ft./yr.
annual rent (2 restrooms) $ 1,950
rounded rent (2 restrooms) $ 2,000
cap rate 5%
value $ 40,000
construction cost $ 50,000
total of opportunity cost and actual cost $ 90,000
tenant -- who said would not renew without bike
amenities
6,000 sq. ft. same for tenant who won't come
without bike amenities
rent rate in $/sq. ft./yr. $30/sq. ft./yr.
annual rent $ 180,000
first justification
risk of 4 months vacancy if lease terms not met $ 60,000
TI costs at $5/sq. ft. (actual would be $30/sq. ft.) $ 30,000
total $ 90,000
second justification
desired amenities produces higher occupancy 1%
total building commercial sq. ft. 50,000 sq. ft.
average rent rate in $/sq. ft./yr. $30/sq. ft./yr.
annual rent $ 1,500,000
marginal rent $ 15,000
Value $ 300,000
third justification
desired amenities produces higher rent 1%
total building commercial sq. ft. 50,000 sq. ft.
average rent rate in $/sq. ft./yr. $30/sq. ft./yr.
annual rent $ 1,500,000
marginal rent $ 15,000
Value $ 300,000
Notes: 1) The three justifications are mostly additive. 2) Tech tenants are key to downtown growth and more likely to require bike storage/showers. 3) Showers also are amenity for running crowd.
