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Ease of Doing Business – How conducive is the regulatory environment to starting and operating a business. Source: The World Bank, Doing Business – 2020
Labor Cost – Wages for skilled office workers. Source: Global Wage Index, Hickey & Associates 2020
Taxes – Favorability of taxation policies to business. Source: The World Bank, Doing Business – 2020
Tenant Favorable – Assessment of the real estate market condition for office space. Source: Colliers International
Quadrant Legend: Blue = FavorableMedium Blue = NeutralRed = Less Favorable
Typical Loss Factor
10-15%*
From rentable to useable square meters
Loss Factor Notes:
*10-15% as an average, but depends very much on building age and efficiency.
Landlord Concessions
Fit-Out Concession
The Landlord typically does not provide a contribution or concession to fit-out as a part of the lease transaction.
Rent-Free Period
The Landlord typically provides a contribution or concession in the form of a rent-free period.
Standard Range of Rent-Free Months
3mo.-12mo.
Typical number of rent-free months.
Payment of Fees/Commissions
The Landlord typically pays the tenant rep broker’s fee.
Payment of Fees/Commissions Notes:
As negotiated.
Lease Provisions
Lease Term
6yrs.-12yrs.
Typical lease term in years.
Operating Expenses & Service Charges Included
Quoted market rent typically does not include operating expenses (service charges). There are additional charges that apply to leasing space.
Additional Charges
€35/sm-€50/sm
Estimated range for all additional charges per Square Meters.
Additional Charges:
Utilities
Service Charges
Stamp Duty
Electric
Rates
HST
Cleaning
Hydro
Registration Fees
Taxes
Insurance
VAT
Other
Lease Fundamentals: The following apply to both office and industrial leases.
Lease Execution Requirements:
Typical upfront requirements
None for strong credit tenants
Upfront rental payment
Security deposit
Corporate guarantee
Not Applicable
Negotiated Subletting/Assignment
The tenant's right to sublease or assign the space typically is NOT negotiated in the lease agreement. Landlord Consent: Typically, the landlord's written consent IS still required.
Negotiated Subletting/Assignment Notes:
Typically the sublease clause is present for the the same group's/holding companies - but must be negotiated during the lease discussion.
Statutory Subletting/Assignment
This is NOT a statutory right. Landlord Consent: The Landlord's consent is still required.
Blend & Extend Strategies
Typically, a tenant can not take advantage of "blend & extend" ("forward renewal", "early renewal", etc.) strategies when the appropriate market conditions exist.
Blend & Extend Notes:
Can be negotiated separately.
Statutory Early Termination
This is NOT a statutory termination right.
Negotiated Early Termination
It is NOT typical for tenants to be able to negotiate an early termination right in the lease agreement.
Early Termination Notes:
Early break option to be negotiated separately ALWAYS. *Cost to terminate early always subject to negotiation. In some cases the landlord will ask for penalty.
Workplace
Regional Office Space
10sm-15sm
Typical Square Meters per employee (includes office square footage for employees and contractors).
Regional HQ Office Space
10sm-15sm
Typical Square Meters per employee (includes office square footage for employees and contractors).
Rome market is behind.
Desk Sharing
Desk-sharing is not a common practice in the market.
Urbanization of the workforce is: Equal to several other considerations driving location decisions
More and more important, as well as accessibility, vicinity to underground and overall economics.
Industrial Occupier Market Condition
1,1,1,1
Ease of Doing Business – How conducive is the regulatory environment to starting and operating a business. Source: The World Bank, Doing Business – 2020
Labor Cost – Wages for manuafacturing and warehouse/distribution office workers. Source: Global Wage Index, Hickey & Associates 2020
Taxes – Favorability of taxation policies to business. Source: The World Bank, Doing Business – 2020
Tenant Favorable – Assessment of the real estate market condition for industrial space. Source: Colliers International
Quadrant Legend: Blue = FavorableMedium Blue = NeutralRed = Less Favorable
Landlord Concessions
Fit-Out Concession
The Landlord typically does not provide a contribution or concession to fit-out as a part of the lease transaction.
Fit-Out Cost Notes:
Typically no, if it does not relate to the building structure/improvement. All internal personalization relates to the Tenant`s business and operations. In case of Tenant`s exit, the property shall be as universal and flexible for other Tenant as possible.
Rent-Free Period
The Landlord typically does not provide a rent-free period in addition to the fit-out contribution.
Payment of Fees/Commissions
The Landlord typically pays the tenant rep broker’s fee.
Payment of Fees/Commissions Notes:
As negotiated.
Lease Provisions
Lease Term
6yrs.-18yrs.
Typical lease term in years.
Operating Expenses & Service Charges Included
Quoted market rent typically does not include operating expenses (service charges). There are additional charges that apply to leasing space.
Additional Charges:
Utilities
Service Charges
Stamp Duty
Electric
Rates
HST
Cleaning
Hydro
Registration Fees
Taxes
Insurance
VAT
Other
Service Charge Notes:
Additional charges depends on the typology of activity run in the asset. Electric/cleaning/hydro only for common parts. Own consumption costs to be paid separately, service charges and VAT/Insurance/Utilities/Taxes/Stamp Duty etc. to be paid separately.
Lease Fundamentals: The following apply to both office and industrial leases.
Lease Execution Requirements:
Typical upfront requirements
None for strong credit tenants
Upfront rental payment
Security deposit
Corporate guarantee
Not Applicable
Negotiated Subletting/Assignment
The tenant's right to sublease or assign the space typically is NOT negotiated in the lease agreement. Landlord Consent: Typically, the landlord's written consent IS still required.
Negotiated Subletting/Assignment Notes:
Typically the sublease clause is present for the the same group's/holding companies - but must be negotiated during the lease discussion.
Statutory Subletting/Assignment
This is NOT a statutory right. Landlord Consent: The Landlord's consent is still required.
Blend & Extend Strategies
Typically, a tenant can not take advantage of "blend & extend" ("forward renewal", "early renewal", etc.) strategies when the appropriate market conditions exist.
Blend & Extend Notes:
Can be negotiated separately.
Statutory Early Termination
This is NOT a statutory termination right.
Negotiated Early Termination
It is NOT typical for tenants to be able to negotiate an early termination right in the lease agreement.
Early Termination Notes:
Early break option to be negotiated separately ALWAYS. *Cost to terminate early always subject to negotiation. In some cases the landlord will ask for penalty.
Project Management
Section 1. Fit Cost Data
Total Fit-Out Cost
€850/sm-€1200/sm
Class A Office
€550/sm-€900/sm
Class B Office
€400/sm-€550/sm
Class C Office
Furniture Cost
€350/sm
Class A Office
€200/sm
Class B Office
€120/sm
Class C Office
Furniture Cost Notes:
These costs are typically paid by the client.
Floor Covering Cost
€80/sm
Class A Office
€55/sm
Class B Office
€40/sm
Class C Office
Floor Covering Cost Notes:
These costs are typically paid by the client.
Partitioning Walls Cost
€250/sm
Class A Office
€150/sm
Class B Office
€100/sm
Class C Office
Partitioning Walls Cost Notes:
These costs are typically paid by the client.
Other (IT/etc) Cost
€80/sm
Class A Office
€45/sm
Class B Office
€30/sm
Class C Office
Other Cost Notes:
These costs are typically paid by the client.
Construction to Move-in Cycle Time
16wks-18wks
Class A Office
14wks-16wks
Class B Office
12wks-15wks
Class C Office
Typical Manpower Hourly Rates
€100/hr
Programme Manager
€120/hr
Senior Project Manager
€95/hr
Project Manager
€95/hr
Junior Project Manager
€95/hr
Project Assistant
€100/hr
Workplace Consultant
€100/hr
Designer/Architect
Project Management Base Fee
8-12%
Base fee [%] for the fitout of above office of 1000 m2.
Section 2. Scope of Work Description
Phase 1: Services Before and During the Transaction
Review the LOI and work letter portion of the Lease to ensure that the clients interests are protected during the build-out of the project.
Typically included in "Project Management" scope of work.
Advise Colliers broker and client on project issues and their resolution as they occur.
Typically included in "Project Management" scope of work.
Participate in building tours, if requested, to evaluate building systems and other cost-related observations and prepare a building due diligence report
Typically included in "Project Management" scope of work.
Develop high-level project estimate and timeline based on test fit and Client standards
Typically included in "Project Management" scope of work.
Schedule and chair Schematic Drawings and Design Development Drawings review meetings/conference calls
Typically included in "Project Management" scope of work.
Define workplace strategy for client, research what kind of location, office / work environment accelerates business
Not typically included at all, but available for an additional fee.
Define program of requirements for location, building and interior characteristics
Typically included in "Project Management" scope of work.
Engage with the Client Facilities Management (FM) Operations team to ensure alignment with Client standards
Typically included in "Project Management" scope of work.
Phase 2: Service Before and During the Design Process
Develop preliminary project budget and schedule.
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Develop the RFP for selection of a space planner/architect and any other consultants identified and required
Typically included in "Project Management" scope of work.
Analyze, compare and evaluate responses to the RFP.
Typically included in "Project Management" scope of work.
Orchestrate the space planner/architect interview process.
Typically included in "Project Management" scope of work.
Negotiate, on behalf of the client, professional services agreements with the space planner/architect and other consultants.
Typically included in "Project Management" scope of work.
Review architect’s final Program of Requirements.
Typically included in "Project Management" scope of work.
Monitor the design team’s schedule of deadlines and deliverables. Coordinate meetings with the design team and the client. Manage the design process on behalf of the client.
Typically included in "Project Management" scope of work.
Review and recommend payment of the invoices for services. Submit invoices for payment to landlord or client and prepare monthly reports of project costs versus project budget.
Typically included in "Project Management" scope of work.
Negotiate all client-vendor contractors (IT, AV, Security/Access Control, Signage, High Density Filing) on behalf of client.
Typically included in "Project Management" scope of work.
Coordinate with either Architect or General Contractor in permitting process
Typically included in "Project Management" scope of work.
Schedule and chair weekly design review meetings/conference calls
Typically included in "Project Management" scope of work.
Other Value-Add Services: Test fits (including Look & Feel) - Cost Estimates - Schedule/timing/phasing scenarios - Floor plan, core and circulation efficiency ratios(GIA vs NIA) (NOA vs NIA) - Technical due diligence/Assessments - We may pack everything into a Feasibility Study or proposed them separately depending on the situation.
Not typically included at all, but available for an additional fee.
Define interior guidelines for architect based on workplace strategy
Not typically included at all, but available for an additional fee.
Control workplace strategy and functionality and during design process
Not typically included at all, but available for an additional fee.
Architectural design
Not available / not a service that can be offered.
Phase 3: Services Before Construction
Liaise with the Landlord’s Representative.
Typically included in "Project Management" scope of work.
Prequalify a list of general contractors to be interviewed (consult lease to confirm any Landlord required GCs).
Typically included in "Project Management" scope of work.
Develop the RFP, including Landlord and/or Lease required documents, for selection of a general contractor.
Typically included in "Project Management" scope of work.
Analyze, level, and evaluate the responses to RFP.
Typically included in "Project Management" scope of work.
Orchestrate general contractor interview process and prepare evaluation scorecard.
Typically included in "Project Management" scope of work.
Review all proposed subcontractors and monitor the general contractor’s subcontractor bid process to ensure integrity of the process and quality of the workmanship.
Not typically included at all, but available for an additional fee.
Monitor the general contractor’s schedule of deadlines and deliverables. Coordinate meetings between the design team, general contractor, client and appropriate vendors.
Typically included in "Project Management" scope of work.
Negotiate, on client's behalf, the General Contractor agreement for Client approval
Typically included in "Project Management" scope of work.
Schedule and coordinate Architect's 90% Construction Drawings review
Typically included in "Project Management" scope of work.
Develop Project Cost Summary + Invoice Tracker and update weekly
Typically included in "Project Management" scope of work.
Phase 4: Services During Construction
Coordinate with the Landlord’s Representative.
Typically included in "Project Management" scope of work.
Conduct weekly construction meetings to assess progress, quality and conformance with the Contract Documents and distribute minutes of meetings.
Typically included in "Project Management" scope of work.
Monitor the general contractor’s schedule.
Typically included in "Project Management" scope of work.
Monitor the construction budget.
Typically included in "Project Management" scope of work.
Review, and recommend for payment, the contractor’s Applications for Payment.
Typically included in "Project Management" scope of work.
Monitor all project documentation.
Typically included in "Project Management" scope of work.
Act at all times as client’s liaison to vendors contracted directly by Client (IT, AV, Security/Access Control, Signage).
Not typically included at all, but available for an additional fee.
Oversee the punch list process to ensure acceptable completion of all items.
Not typically included at all, but available for an additional fee.
Close out all consultant, contractor and vendor contracts.
Typically included in "Project Management" scope of work.
Submit General Contractor, vendor, and consultant invoices to Landlord for reimbursement per the Lease Workletter
Not typically included at all, but available for an additional fee.
Review and recommend for payment all General Contractor, vendor, and consultant invoices; submit to Client for approval
Typically included in "Project Management" scope of work.
Deliver close-out documents, as specified in the Lease, to Client
Typically included in "Project Management" scope of work.
Coordinate value/engineering process, if required.
Typically included in "Project Management" scope of work.
Provide as-built drawings and O&M Manuals to Client FM Operations team
Not available / not a service that can be offered.
Additional Services: Services During Relocation
Develop RFP for moving companies, evaluate responses and recommend selection of moving company or identify, interview and review proposal for services from relocation consultants.
Not typically included at all, but available for an additional fee.
Represent Client in development of move strategy.
Not typically included at all, but available for an additional fee.
Monitor development of move activity checklist.
Not typically included at all, but available for an additional fee.
Represent client on site during move process.
Not typically included at all, but available for an additional fee.
Additional Services: Project Management Services Related to Furniture/Workstation Procurement
Conduct bid process for all furniture (workstations, case goods, seating, filing) purchases specified by the architect and/or client.
Typically included in "Project Management" scope of work.
Conduct bid process for refurbishment of existing furniture and/or workstations.
Typically included in "Project Management" scope of work.
Evaluate bids and negotiate purchase order with manufacturer(s).
Typically included in "Project Management" scope of work.
Negotiate national buying contract with select furniture dealerships, using Colliers International purchasing power
Typically included in "Project Management" scope of work.
Change management before, during and after moving to the new work environment
Not typically included at all, but available for an additional fee.
Measuring/monitoring (KPI's) how the way of working and building accelerates business and goals of the client
Not typically included at all, but available for an additional fee.
Operating Environment Data provided in partnership with Hickey & Associates. Rankings reported on a scale of 1 (least favorable) to 10 (most favorable).
Human Capital
4, 64/10
Labor Force Growth Labor force growth rate (past 5 years)
5, 55/10
Wage Inflation Rise in wages (past 5 years, local currency)
1, 91/10
Millenials Proportion of population in the age 20-39 cohort
6, 46/10
High School Edu Equiv Proportion of population attaining this level
1, 91/10
University Edu Proportion of population attaining this level
4, 64/10
Overall Edu Composite average of High School & University
4, 64/10
Human Capital Composite
Business Climate
2, 82/10
Innovation Presence of innovative factors in economy
5, 55/10
Economic Risk Resilience of economy to unexpected events
1, 91/10
Business Environment Friendliness of business environment
7, 37/10
Incentives Value potential, diversity/number of programs
4, 64/10
Business Climate Composite
Operating Environment Composite
4, 64/10
Combined average score of Human Capital and Business Climate factors
[1]Currency conversion works for estimate purposes only and may not reflect real-time values.
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warranties of any kind, expressed or implied, regarding the information including, but not
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excludes unequivocally all inferred or implied terms, conditions and warranties arising
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