March 2021
Bogotá, Colombia
Real Estate
Service Proposal
Tenant Representation – Relocation Project
JLL
Market Overview
Requirement
Scope of Services
Our Experience
Our Team
Compensation Structure
Download Proposal
About us
Global presence
Awards
Colombia Portfolio
Transactions
About JLL
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management.
Our vision is to reimagine the world of real estate, creating rewarding opportunities and amazing spaces where people can achieve their ambitions. In doing so, we will build a better tomorrow for our clients, our people and our communities. JLL is a Fortune 500 company with nearly 300 corporate offices, operations in over 80 countries and a global workforce of 92,000 as of Septemner 30, 2020.
Jones Lang LaSalle Limitada (Ltda), JLL, has been present in Colombia since 2000, with four business' lines: Transactions, Project and Development Services, Facilities Management and JLL Hotels.

JLL is the trade name, and a registered trademark, of Jones Lang LaSalle Incorporated
A Company
Fortune 500
With presence in +80 countries
92.000
R.E Professionals
102+
JLL employees
Full Service Office
Bogota
Key Markets
Bogota - Medelllin - Cali - Barranquilla -Bucaramanga
Global presence
Colombia overview
Awards and Recognitions
From all our accomplishments, we are proud of our team excellence, the opportunities for personal growth that we provide to our people, and the contributions we give to our communities.
  • The International Property Awards has named JLL the Best Property Consultancy in Central & South America eight years in a row between 2012 – 2020.
  • Latin America N°1 Real Estate Advisor and Consultant at the Euromoney Real Estate Awards 2016, 2018 and 2020
  • World's Most Ethical Company by Ethisphere twelve years in a row 2008 – 2020
  • One of the World's Most Admired Companies by FORTUNE magazine in 2008, 2015 – 2019.One of the Working 100 Best Companies by Working Mother Magazine, 2017, 2018 and 2019
  • LinkedIn Top Attractor - Where the world wants to work now, 2017, 2018 and 2019.
  • Fortune 500 since 2015.
Colombia Portfolio
Transactions

Facilities Management

Portfolio Management/ Workplace
Project and Development Services
Transactions Services
Corporate Solutions
Exclusive representation and advisory for real estate strategic decisions.
Analysis and implementation through global integrated services.
Brokerage
Optimized search for commercial properties to lease or buy.
Analysis of alternatives, negotiation process and closure.
Asset Services
Landlord representation for commercial strategies creation and implementation.
Consulting & Valuation
Real estate consulting and market research.
Project Structuring, feasibilities and valuation.
Capital Markets
Representation of institutional and private investors.
Strategic processes to buy / sell assets.
COVID Impact
Bogota Office Market
Bogota Submarkets
Covid Impact | Office Market
The global pandemic marked a turning point for the office market. Uncertainty is extremely high and structural changes are expected to become noticeable in 2021 and beyond.
The end of the supply cycle, along with strict quarantines in the city resulted in the lowest production in the last decade, a trend that will only revert after 2023.
Total absorption entered negative territory, due mostly to small and mid size companies forgoing office space and a freeze on new leases by large firms, while they are all reconsidering the use of their spaces.
In 2020, an unmatched environment of uncertainty and a sudden revision of corporate life models pushed the vacancy rate to the highest level since 2017.
The very few lease acquisitions that closed in 2020 showed stable rents compared to 2019. Nonetheless, JLL forecasts market prices to fall in 2021, as a result of higher vacancy, low demand and users' greater negotiation power.
We expect a slow recovery of the market towards 2023, reflecting an adjustment to a post-pandemic scenario in which a hybrid model combining Home Office and Office Work will be more widely adopted.
2,695,141
Stock
2,752,870*
13.7%
Vacancy
19.5%*
2021
2020
2%
y-o-y
5.8
pps
Bogota | Office Market
The Colombian capital is the fourth largest market in Latin America, behind Mexico City, Sao Paulo and Santiago. Its office market is composed of nine sub-markets that encompass nearly 2,700,000 sqm investment-grade space.

The city's traditional business district is known locally as El Norte, and contains the following sub-markets: Avenida Chile, which spans the traditional financial district and represents 8% of the total office stock; Andino/Nogal, Bogota's main retail district with 8%, Chico, the largest submarket in the city with 15%; Calle 100, the commercial corridor stretching from Carrera 7 to Autopista Norte with 10%; and finally, Santa Barbara, the CBD's northernmost area with 13%. Overall, El Norte comprises 54% of the market's stock.

The areas not included in El Norte are known as "decentralized areas". This category includes all other submarkets: Centro Internacional, the city's historic downtown, with 5% of the stock; Salitre and El Dorado, which lie along Avenida El Dorado and contain 15% and 12%, respectively; and, finally, 14% of the stock under the "Other" category, is spread across Bogota in nonconsolidated parts of the city. During the last decade, the newer and non-traditional submarkets were the fastest growing: While these "decentralized areas" contained only 24% of the total stock in 2009, in 2020 they reached 46%.
$65,000 – $92,000 m2/ month
Rents CBD – Prime
$51,000 - $77,000 m2/ month
Rents CBD – Non Prime
$55,000 - $80,000 m2/ month
Rents Decentralized – Prime
$45,000 - $64,000 m2/ month
Rents Decentralized – Non Prime
2,695,141 m²
Q4, 2020 Total Stock
13.7%
Q4, 2020 Vacancy Rate
-75,350 m²
Q4, 2020 Net Absorption
Bogotá | Office Market
Central Business District
Santa Bárbara (13%): An extensive high-income area that is located between Calle 100 and Calle 127.

Calle 100 (10%): A primary commercial corridor with several large-scale properties.
MetLife offices are located in this submarket.

Chicó (15%): A high-income area located between Calle 90 and 100. Much of the stock here is composed of smaller buildings with small floorplates, due to high density and zoning laws that restrict building height.

Andino/Nogal (8%): A high-income area anchored by three shopping malls: Andino, Retiro, and Atlantis.

Avenida Chile (8%): The city's financial district, located along and around Calle 72.
Centro Internacional (5%): Bogotá's old downtown where the oldest buildings can be found; consists mostly of older Class B and C properties that are poorly maintained and have many landlords due to a Strata Title ownership structure.

Salitre / Dorado (27%): The city's primary growth sector along the Calle 26 (Eldorado Avenue), which connects Centro Internacional to the El Dorado Airport. Salitre contains several large-scale, quality properties with large floorplates and reasonable rents in a less consolidated area.

Others (14%): Is spread across the city in nonconsolidated parts of the city.
Decentralized
Understanding of the Requirement
MetLife leases 3.039 sqm (m²) of space in two buildings located in the Calle 100 submarket: ITAU and Proksol.

Estimated space requirement for relocation is 2.640 sqm (m²). Cost is a consideration for relocation. It is mandatory that the alternatives have generators for common and private areas, accessibility infrastructure for people with physical disabilities, raised floor and modular ceiling in-place
Lease expiration date: August, September, October, December 2021.
Preferred location is:
Autopista Norte between 100 street until 127.
Avenida el dorado Between street 50 until avenue Boyaca.
Could consider Avenue 15 from 94 street until 116 with similar commute as current location.
Transactions
Project & Development Services
New Lease Acquisition Process
Evaluate Requirement
Alternatives
Commercial Negotiations
Legal Negotiations
New Lease Acquisition Process
Evaluate /
Validate Requirement
1 week
Identify & Analyze
Alternatives
3 weeks
Commercial
Negotiations
3 – 4 weeks*
Legal Negotiation
Closure
4 – 6 weeks*
01
1. Understanding of the requirement.

2. Advise on local market standards and practices.

3. Provide overview of the current market conditions.

4. Provide a report on existing real estate market alternatives and likely future trends to identify all potential properties considering search criteria previously defined.
02
03
04
1. Survey of options "Initial Options Report".

2. Conduct site visits to the potential sites for relocation.

3. Selection of key sites / shortlist.
1. Preparation and submission of nonbinding Letter of Intent – LOIs

2. Negotiate 2-3 final prospects in parallel.

3. Evaluation of key sites (qualitative vs. quantitative).

4. Issue required counter offers and conduct required negotiations to secure best possible final terms.

5. Finalize negotiations with current Landlord to renew the lease or with new landlord for relocation and arrange execution of LOI, if required.
1. Request initial lease/amendment draft to the Landlord.

2. Review lease draft provided and deliver comments for client's legal advisor review.

3. Closely cooperate with the legal advisors to proceed with draft revision and required legal negotiations; participate in all legal discussions.

4. Support final document execution.
* Times may change according to internal approval process
Understanding of the requirement to jointly define search criteria.

Advise on local market standards and practices.

Provide overview of the current market conditions.
1.

2.

3.
Evaluate Requirement
1. Provide a report on existing real estate market and likely future trends to identify all potential properties considering search criteria.

2. Negative selection of the properties provided in the market survey, identifying properties for inspection.
3.Conduct required visits.

4. Negative selection to identify Initial Short-List.
Traditional Spaces
Shell and core – with the possibility to find an investor that finances Turnkey / Move-in-Ready delivery via OPEX

Move-in-ready / former company improvements – with a minimum of CapEx to adjust existing to your
look & feel. Also applicable via OPEX model
Flexible Spaces
As part of a Co-working brand




Personalized within a preferred building, inclusive of operation expenses
Exploring and presenting the whole market availability
Product of JLL research/ brokerage database of availabilities

Working with colleagues, to guarantee full coverage of market options
Identify & Analize Alternatives
Develop lease acquisition non-binding LOIs.

Issue LOIs to the Landlords/Owners/Brokers of Short-Listed properties.

Follow up with the Landlords/Owners/Brokers to secure delivery of proposals.

Qualitative analysis of the properties on the initial short-list.

Financial analysis of offers using discounted cash flows.

Re-confirm the Short-List of properties.
Issue counter offers to the Landlords/Owners/Brokers of short-listed properties.

Continuous update of the qualitative and financial comparison reflecting up-to-date information on the short-list properties as well as negotiation results.

Conduct required negotiations to secure the best possible offers.

Finalize negotiations and arrange execution of LOI, if required
1.
Commercial Negotiations
2.
3.
4.
5.
6.
7.
8.
9.
10.
1.

2.


3.


4.
Request initial lease drafts from the Landlord/Owner/Broker.

Review provided lease draft and deliver comments for client's legal advisor review.

Closely cooperate with the legal advisors to proceed with draft revision and required legal negotiations; participate in all legal discussions.

Support final document execution.
Legal Negotiations
Due diligence
Test Fit
Preliminary Schedule
It is JLL understanding that MetLife wishes to develop 3 Building Assessments (Due diligence) for each shortlisted site in Bogota, Colombia.
Due diligence
Due diligence
Site Visit 1 (1 day)
Site Visit 2 (1 day)
Site Visit 3 ( 1 day)
Report Site visit 1 ( 1 week after LL information is received)
Report Site visit 2 ( 1 week after LL information is received)
Report Site visit 3 ( 1 week after LL information is received)
Due Diligence Approach
Analysis
Site visit
Technical analysis
Critical equipment
UPS
Air conditioning
Generator
Sprinklers
Smoke detectors
Architectural works
Ceiling
Floor
Windows
Staircases
Elevator
Restrooms
Access to the building
Photographic survey
Reports
It is JLL understanding that MetLife wishes to develop 2 test fits for each shortlisted sites in Bogota, Colombia of approx. 2.640 sqm each.
Test Fit
Test fits
JLL proposal approval
Program confirmed by client (1 week)
Site Visit 1 (1 day)
Site Visit 2 (1 day)
Test fit 1 preparation ( 1 week after program is defined)
Test fit 2 preparation( 1 week after program is defined)
Test Fit Includes
CAD drawings of the buildings to be accommodated.
Program or general list of company personnel.
Organization chart (if it exists).
Review of the program, number of personnel and final needs to develop a space in the plant in order to generate analysis of three buildings approx. 2.640 sqm each for design.
To guarantee the correct elaboration of the interior design tropicalization project and interior design architectural project, object of this proposal.
The client is required to provide the following information:
Copies and additional prints of plans.
Models, prints and other material for presentations.
Photography and professional visualizations.
The following is a list of potential reimbursable expenses, which are not included in the fees and must be paid by the client if incurred:
It is JLL understanding that MetLife wishes to develop 1 high level cost estimation for the selected site in Bogota, Colombia of approx. 2.640 sqm each.
Preliminary Schedule and cost estimations
Preliminary cost estimation
Soft costs (PM, Architect, Permits etc.)
Civil works and finishes
Technology installations
Mechanical and Electrical installation
AV
Furniture
Flooring
Move- in
Based on the Due Diligence and MetLife requirement, the PDS team will prepare a preliminary cost estimation
Preliminary schedule
Prepare a Project Master Schedule based on the site selection and Local Regulations (Procurement activities, Permits, Process)

Prepare a long lead list and provide an strategy to be followed during the Project development
Our Experience
Tenant Representation
Project Development Services
Our Experts Tenant Representation
Jean-Baptiste Wettling
Director
Mr. Wettling heads JLL's transaction activities in Colombia, with focus in Agency Leasing, Tenant Representation, Capital Markets, Consulting and Research.

He is based in Jones Lang LaSalle's Bogota office and has fifteen years of experience in the region. During this time, Jean Baptiste has completed several assignments for clients such as Apple, Cisco, JP Morgan, Microsoft, HSBC, Google, Xerox, Motorola, MSD, Verizon, Adidas, among others.
Mr. Wettling graduated in business management and international trade from Reims Management School in France and is fluent in French, Spanish and English.
Cindy works in transactions for Colombia. Her focus areas are Tenant Representation and Digital Marketing Strategies. She joined JLL's Bogota office in May 2017.
With 9 years of experience working in real estate segment in companies such as OPAIN and Terranum, Cindy has been involved in different real estate activities including client relationship management (tenants and landlords) and transactions for clients such as Globant, McCann, 24 – 7 Intouch, EXL, GSK among others.
In 2009, Ms. Suarez graduated in International Business Management from Universidad de La Sabana and Executive MBA from Politecnico di Milano. She is fluent in Spanish and English.
Cindy Suarez
VP Corporate Solutions
Natalia Ruiz Martinez
Consultant
Natalia works in the transactions division at JLL Colombia. She specializes in tenant representation and has been a part of the JLL team since September 2018.

During this time, Natalia Ruiz has completed several assignments for clients such as Red Hat, Hopper, Cardinal Health, Spectrum Brands, Huge, Stryker, among others.
In 2017, Natalia was an intern for Procter & Gamble in Panama as a Market Analyst.
In March 2018, Natalia graduated from Universidad del Norte, with a bachelor's degree in International Business.
Her first language is Spanish, understands Portuguese and is fully fluent in English.
Colombia Office
Colombia Office
Our Experts Project Development Services
Veronica Lanzetta
Senior Project Manager
Veronica is a Senior Project Manager at JLL Colombia.
Architect with fourteen years of professional experience, evaluation and multiple management of architectural projects in which she has high capacity to form and lead work teams, develop planning, programming and control activities, as well as develop strategies for the achievement of objectives and goals, with ability to prioritize, make decisions and react to complex situations.
Veronica has led successful projects that comply with the budget, schedule, procurement and quality guidelines, compliance with regulations, for Corporate Companies requiring from ground-up projects, technological complexities and fit outs.
Angélica works at JLL as a Project Manager at the PDS division.
She has gained over 5 years of experience in coordinating telecommunications projects in which she had to manage all the foundation, structure process, administrative support and document control. Also, she have worked in civil and corporate projects. From the beginning, through execution and final delivery of the projects to the client.

Angélica has stood out by fulfilling or exceeding the requirements of each project in which she has been involved, highlighting her as professional with high levels of integrity, responsibility and commitment.
Angélica Martinez
Project Manager
Camilo Quintero
Project Manager
During his professional career he has executed design and construction projects, nationally and internationally, as well as the structuring of real estate projects and high standing master planning.
His experience as Project Manager includes the execution of various social and single-family housing projects in Colombia as well as large-area commercial spaces, multiple retail, corporate and institutional spaces in a high specialty hospital.
His experience includes the design, structuring and financial viability of high-standing housing and hotel master plans in Colombia and the Caribbean with investments of USD 30M for a real estate project developer.
Colombia Office
Colombia Office
Colombia Office
Transactions
Project Development Services
Terms
Success fees for leasehold acquisition:

As per market practice, landlords are responsible for the payment of broker fees, as long as the broker is able to demonstrate the exclusive representation of a tenant.
JLL will make every attempt to collect these fees from the landlord, however in the event that the landlord is unwilling to pay a full market fee, the Client agrees to underwrite and pay any fee, or portion thereof that is not paid to JLL by the landlord or local serviced office provider.
Market fee is 2 months net rent.

For the serviced offices, the market fee is 10% of the total lease paid by the provider.
These fees are subject to a minimum/ cancellation fee of USD 10,000.

In the event that after negotiating with other buildings, the project ends up in a competitive renewal, the tenant is responsible for the payment of broker fees of 2 months net rent.

All fees are subject to local VAT (19%).
Assumptions
The fees are based on an estimated duration of 3 weeks to deliver the Due Diligence, Test fits and preliminary cost and schedule estimations.

If an insurance is required, the cost will be additional to be reimbursed by the client if it is not covered by our global insurance. Client to confirm requirements

If as solely discretion of MetLife, JLL does not provide the service described above, MetLife may terminate this agreement and provide the corresponding notice to JLL in writing with 15 days notice. MetLife expressly agrees to reimburse such eventuality to JLL all costs incurred until the end date.

The costs are based in deliverables indicated in the Scope of Work of this Proposal.

Payment terms: 100% upon de the delivery of the Due diligence, Test Fits, preliminary Costs and schedule estimations

All values presented are net of taxes. VAT or other local invoicing taxes should be added, following local country regulation Expected Costs included to be confirmed on the final specification of the scope

The proposal is made based on the information we have from MetLife. In case of any variation to the total number of months and to the square meters of the project, a new calculation of the cost offered in this proposal will have to be made.

In addition to our fee we will bill MetLife. for reimbursable costs related to the project (if it applies) at actual cost. Thesereimbursable costs may include but are not limited to: Travel expenses related to the project, rental of vehicles, subsistence and accommodation, office expenses on site, in case of requirement (rent, stationery, copies, etc.)
communication equipment, long distance calls, courier and parcel expenses, cost of project monitoring equipment (such as webcams). The reimbursable expenses must be subject to the prior written approval of MetLife.

In the event that the project requires more personnel from the one listed before, due to a variation in the scope of the services described, the additional personnel will be paid to JLL.

Payments will be conducted in Colombia

Invoices payment agreed terms 30 days. Past due invoices will be charged a 5% monthly fee.

JLL will invoice in USD currency and Metlife will perform the payments in COP using the exchange rate of the day of payment.
COSTS USD $7.000
Terms and conditions
Tenant Representation
1) Jones Lang LaSalle shall be contracted on an exclusive basis to manage the activities for the Client, partnering with Client's selected consultant Cushman & Wakefield, concerning the Tenant representation services for a period of twelve (12) months. This Agreement may be renewed for an additional six-month (6) period, if mutually agreed to by Client and Jones Lang LaSalle in writing. All prospective buyers and/or office spaces presented directly to Client if by any other party, or who contact Client directly, will be directly passed over to Jones Lang LaSalle and will be considered as a prospective buyer and/or space presented by Jones Lang LaSalle.

2) 30% of the gross fee shall be shared with Cushman & Wakefield account team supporting MetLife in this project.
7) Professional services such as legal, engineering and architectural services are not part of this proposal. If these services are required during the process, they will be contracted directly by Client on a separated agreement.

8) This agreement shall be governed by, and construed in accordance with, the laws of Colombia applicable to agreements made and fully to be performed therein by residents thereof. Any controversy or claim arising out of or relating to services covered by this letter or hereafter provided by us for the Company or at its request, shall be submitted first to voluntary mediation, and if mediation is not successful, then to binding arbitration. Judgment on any arbitration award may be entered in any court having jurisdiction in Colombia.

9) Jones Lang LaSalle will keep absolute confidentiality, not disclosing any information on the Client, especially the terms and conditions of the negotiations to be undertaken during this assignment.

10) This document is for MetLife's internal use to evaluate the proposal and will not disclose the content to any third party.
3) If the Client selects an option represented by Cushman & Wakefield under an exclusivity agreement with the landlord, the fee will be shared in a 50% basis as per market practice.

4) If, in the sole opinion of Client, Jones Lang LaSalle is not providing the services as described above, Client may rescind this agreement provided it advises Jones Lang LaSalle in writing with thirty (30) days' notice with no indemnification or reimbursement of costs and expenses whatsoever.

5) The additional costs for marketing materials will be paid directly by the client, once the client has approved them.

6) If upon termination of this agreement by any cause no contract for new facilities has been completed however, a contract is completed within a period of twelve (12) months after termination with any prospective building presented by Jones Lang LaSalle, then, Jones Lang LaSalle will be entitled to receive the fees stipulated above under the same terms and conditions. For purposes of this clause upon expiration Jones Lang LaSalle shall provide a list of its prospective buildings.
Tenant Representation
Terms and conditions
1) Jones Lang LaSalle shall be contracted on an exclusive basis to manage the activities for the Client, partnering with Client's selected consultant Cushman & Wakefield, concerning the Tenant representation services for a period of twelve (12) months. This Agreement may be renewed for an additional six-month (6) period, if mutually agreed to by Client and Jones Lang LaSalle in writing. All prospective buyers and/or office spaces presented directly to Client if by any other party, or who contact Client directly, will be directly passed over to Jones Lang LaSalle and will be considered as a prospective buyer and/or space presented by Jones Lang LaSalle.

2) 30% of the gross fee shall be shared with Cushman & Wakefield account team supporting MetLife in this project.

3) If the Client selects an option represented by Cushman & Wakefield under an exclusivity agreement with the landlord, the fee will be shared in a 50% basis as per market practice.

4) If, in the sole opinion of Client, Jones Lang LaSalle is not providing the services as described above, Client may rescind this agreement provided it advises Jones Lang LaSalle in writing with thirty (30) days' notice with no indemnification or reimbursement of costs and expenses whatsoever.

5) The additional costs for marketing materials will be paid directly by the client, once the client has approved them.

6) If upon termination of this agreement by any cause no contract for new facilities has been completed however, a contract is completed within a period of twelve (12) months after termination with any prospective building presented by Jones Lang LaSalle, then, Jones Lang LaSalle will be entitled to receive the fees stipulated above under the same terms and conditions. For purposes of this clause upon expiration Jones Lang LaSalle shall provide a list of its prospective buildings.

7) Professional services such as legal, engineering and architectural services are not part of this proposal. If these services are required during the process, they will be contracted directly by Client on a separated agreement.

8) This agreement shall be governed by, and construed in accordance with, the laws of Colombia applicable to agreements made and fully to be performed therein by residents thereof. Any controversy or claim arising out of or relating to services covered by this letter or hereafter provided by us for the Company or at its request, shall be submitted first to voluntary mediation, and if mediation is not successful, then to binding arbitration. Judgment on any arbitration award may be entered in any court having jurisdiction in Colombia.

9) Jones Lang LaSalle will keep absolute confidentiality, not disclosing any information on the Client, especially the terms and conditions of the negotiations to be undertaken during this assignment.
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