Cincinnati PR

The Murphy-Abernethy Messenger is a monthly newsletter produced for Don Murphy, Scott Abernethy and Peter Snow … aka the Murphy-Abernethy Office Group at Colliers Turley Martin Tucker, one of the big boys in Greater Cincinnati commercial real estate. You can find them online at http://www.CincyOfficeSolutions.com.

The November edition features the first tenant at the much-anticipated Union Town Plan in Union, Ky.: Summit Medical Group, with 20 offices across Northern Kentucky. Construction on the newest Summit facility is being handled by Eric Tipton with Tipton Development, with completion expected for the Mount Zion Road building in March 2010.

The industry-trending topic was “Leasing Market Is Still a Tenant’s Game,” evidenced by landlord concessions such as free rent and increased tenant improvement incentives.

Last month, the newletter highlighted Murphy-Abernethy’s work with State Farm Mutual Auto Insurance to wrap up the client’s fifth transaction with the brokers, for a new Symmes Township office at Beckham Square Office Park on Reed Hartman Highway. The new office will open in early December.

The October newsletter’s commentary concerned the lease renewal process, and how tenants can work with brokers, and landlords, to help all parties realize the value of creditworthy tenants in this market. While both tenants and landlords gain from lease renewals, the tenant can, and should, capture most of the economic benefits.

Also in October, the Featured Properties segment in the Murphy-Abernethy Messenger highlighted Fountain Place I and II, two of the City of Blue Ash’s finest office buildings. Ownership has invested in capital improvements and sustainable design to keep tenants happy. Businesses are also benefitting from a fixed-rate, gross lease structure. Fountain Pointe is notable for its rate economics, key location, full-service lease structure and a conference center upgraded with state-of-the-art AV.

In September, the team announced its representation of Thinkronize for a new lease at Park 42 in Sharonville, as well as a new project in West Chester dubbed the “Office at the Pointe.” The Office at the Pointe is a three-acre development in the white-hot West Chester market, at the corner of Muhlhauser Road and International Boulevard (shopper alert: it’s close to the new IKEA).

Other news in September concentrated on the build-to-suit story: the BTS process provides more flexibility and control over project design and costs, which can make development dreams come true for many companies.

First off, the BTS concept allows companies to get exactly what they need, instead of trying to retrofit an existing building, and living with a less-than-ideal product. There are also many tax incentives geared toward new investment in a newly-constructed building, which can equate to a percentage savings in real estate taxes.

In some cases, the savings can add to up as much as 100 percent for as long as 15 years. Maintenance costs are reduced because the life expectancy of the building systems – the HVAC, roof and mechanicals, etc. – are at their highest point.

There is a longer timeframe for both planning and construction of BTS projects, however. Lease rates are also typically higher than existing buildings, so tenants do need to factor those elements into their final assessment. Other BTS advantages are abundant parking and a greater level of employee satisfaction.

August marked a new HQ for ASTAR Air Cargo of Miami at Turfway Ridge, relocating from Wilmington to the Florence site. ASTAR needed to be close to the Greater Cincinnati/Northern Kentucky International Airport. They’re sticking close to one of their biggest customers, DHL Airways.

The August newsletter also communicated the outstanding success the Murphy-Abernethy Office Group has had representing Fred Kanter with Rookwood Properties, particularly at Corporate Park in Sycamore Township, where the team has closed eight office deals in 2009 alone.

Based on that track record, Kanter awarded the team the listing for Executive Park in Sharonville. The six-building complex at Interstate 275 and Ohio Route 42 totals 191,000 SF. The Murphy-Abernethy team has capitalized on market fundamentals that dictate companies are more interested in Class B buildings that provide a good value: in many cases, lease rates are 30-40 percent below that of Class A properties.

Back in July, the Murphy-Abernethy Office Group touted the iconic 580 Walnut Building, a high-profile, two-tower facility with a 400-car parking garage that’s ripe for an international HQ.

Ownership has embarked on a repositioning initiative to showcase the building’s top eight floors as an optimal choice for a regional or national office headquarters.

The 580 sports new retailers on its ground floor, the Energy Star efficiency program, central location to Fountain Square and connections to the city’s Skywalk system.

Also announced in the July newsletter: the Murphy-Abernethy Office Group assisted Barnes, Dennig & Co. to some sweet new digs at a prestigious Fourth Street address in the Federal Reserve Bank Building. The transaction marked the second time in two months the group worked with a major accounting firm.

Barnes Dennig was diggin’ on the proactive nature of representation provided by the team.

“What really resonated with us, and what impressed us throughout the whole process, was the proactive nature of representation that the Murphy-Abernethy Office Group was able to provide,” said Bill Cloppert, managing partner.

“They were able to anticipate our needs, and reach out to us during some very critical stages of negotiations. You typically can’t find a professional team that’s able to combine their level of expertise with the kind of responsiveness that we needed, but Scott and his team were there for us every step of the way,” Cloppert added. “It isn’t just about following up with phone calls. It’s about anticipating our needs, every step of the way.”

…. which brings us back to June, and the first of those two “Accountants on the Move” deals.

The team was there for Jackson, Rolfes, Spurgeon & Co., which conducted a site search to locate a new facility. The result was a lease at the Midland Building on East Pete Rose Way, where the CPA firm, now known as Plante Moran, has already relocated.

The June newsletter also detailed the age-old debate of buying vs. leasing property. Deciding which transaction will best support a company’s business, financial and real estate objectives is a complicated issue.

The benefits of a lease are low up-front cash requirements, freeing up capital for core business purposes; more control for tenants; mitigation of risk; a simpler disposition scenario and reduced governmental interaction.

On the flip side, buying a building produces a more predictable outcome that can better suit a tenant’s image; provides more control over security, services and utility costs; maintains flexibility for a future sale; instills a potential profit center to complement primary business lines, and preserves tax benefits such as property depreciation and interest expenses.