2020 ISSUE Chasing Talent KBS explores the surge of companies seeking to locate near the best talent pools in the country. PAGE 16 Power On! An exclusive interview with one of basketball’s greatest all-time scorers, Dirk Nowitzki and his wife Jessica. PAGE 20 What’s Inside: Importance of Branding What Gen Z Wants Stress Free Offices Tenant Profiles: MedtoMarket and FP1 Strategies Market Spotlight: Nashville GTLAW.COM Helping clients identify opportunity and manage risk. With over five decades of business- driven legal experience and more than 400 real estate attorneys from around the world, serving clients from key markets in the United States, Europe, the Middle East, and Latin America. GREENBERG TRAURIG, LLP | ATTORNEYS AT LAW | 2100 ATTORNEYS | 41 LOCATIONS WORLDWIDE° Bruce Fischer | Chair, West Coast Real Estate Practice WORLDWIDE LOCATIONS Co-Managing Shareholder, Orange County 18565 Jamboree Road | Suite 500 | Irvine, CA 92612 | | 949.732.6500 United States Greenberg Traurig, LLP GreenbergTraurig, LLP GT_Law GT_Law Europe Middle East The hiring of a lawyer is an important decision and should not be based solely upon advertisements. Before you decide, ask us to send you free written information about our qualifications and our experience. Prior results do not guarantee a similar outcome. Asia Greenberg Traurig is a service mark and trade name of Greenberg Traurig, LLP and Greenberg Traurig, P.A. ©2018 Greenberg 2 Traurig, LLP. Attorneys at Law. All rights reserved. Attorney advertising. °These numbers are subject to fluctuation. Images in this PREMIER OFFICE MAGAZINE advertisement do not depict Greenberg Traurig attorneys, clients, staff or facilities. 33268 Latin America Letter from the CEO he year 2020 will close out the second decade of the T21st Century. It seems like just a short time ago we We had the honor of leasing space were celebrating the turn of the century, and before long, we in Dallas recently to The Dirk will be a quarter-way through it. The beginning of 2020 is a Nowitzki Foundation, an organization wonderful time to recognize our blessings. committed to helping underprivileged The year 2020 should be exciting. In January of 2018 I began children improve their lives and tracking an interesting trend in our national portfolio of office realize their dreams. properties. In years prior, typical lease terms for our tenants averaged five to seven years. Since the first quarter of 2018, KBS Speaking of talent, we had the honor of leasing space in Dallas has signed over 69 leases that averaged 60,000 square feet and recently to The Dirk Nowitzki Foundation, an organization had an average lease term of 11 years. The office space covered committed to helping underprivileged children improve their by these leases was nearly 39% of the KBS leasing volume lives and realize their dreams. The foundation is operated by during this period. Today, the cost to build a new multitenant NBA superstar Dirk Nowitzki and his wife, Jessica. Dirk is one office building in a growing urban market is prohibitive while of the greatest players the game has known, and while many at the same time, the economy, especially the tech sector, were sad to see him retire after 21 seasons with the Mavericks, continues to see growth. Several markets may face a shortage of he is as excited as ever about the new chapter in his life, which new space in the near term as demand outpaces supply. Many centers around his family and giving back to his community. If of our tenants are not only renewing for longer terms, but also you need to be inspired, be sure to read our exclusive interview expanding their space to accommodate future growth. with Dirk and Jessica on page 20. In this ninth issue of Premier Office Magazine, we cover a There are plenty of other great stories in this issue, including number of trends, one of which is the strong demand for space a profile of two intriguing KBS tenants, FP1 Strategies, a in markets that attract talent. Growth-oriented companies need Beltway-based political strategy and public affairs firm, and talent in order to compete, and the Millennial and Gen Z talent MedtoMarket, a company in Austin that provides an innovative is particular about where they want to live and work. Location platform for health care entrepreneurs to launch their products. has been and continues to be critical. At KBS we are driven to acquire properties in urban areas that are attracting today’s I want to wish everyone a healthy and prosperous year 2020. talent pool, and we seek to provide our tenants with workplaces that provide the right mix of location and amenities that will God bless America, help their businesses retain this talent. Be sure to read our story “Chasing Talent” on page 16 for a closer look at this trend. Charles J. Schreiber Jr. Chief Executive Officer KBS PREMIER OFFICE MAGAZINE 3 ADVERTISERS INDEX Greenberg Traurig ............................Inside Front Cover CoStar Group ....................................................................... 5 DLA Piper ................................................................................7 US Bank ..................................................................................11 Ramboll .................................................................................15 Mayer Brown .......................................................................19 Capital One .........................................................................23 Ryan .......................................................................................29 PNC Real Estate .................................................................31 Accenture Tower ..............................................................35 Marx Okubo ........................................................................ 37 500 Designs .......................................................................39 Brower Group.....................................................................43 McEwen Building ..............................................................49 Bank of America Merrill Lynch.................. Back Cover THE TEAM Charles J. Schreiber Jr. CEO, Publisher Phillip Diment Editor Ryan Butala Art Director Louise Perry Editorial Coordinator Angelica Abalos Designer Susan Donovan Technical Editor Sharon Dymmel Contributing Editor Dara Holland Contributing Editor Sheila Hopkins Contributing Editor Cindy Peterson Contributing Editor Ron Sklar Contributing Editor EDITORIAL ADVISORY BOARD James Chiboucas KBS Vice Chairman Marc DeLuca KBS Regional President, Eastern Region Robert Durand KBS Executive Vice President, Financing Mimi Nguyen KBS Executive Vice President, Underwriting Rodney Richerson KBS Regional President, Western Region COVER PHOTOS: Sterling Plaza, Dallas. Inset Photo: Dirk Nowitzki #41 of the Dallas Mavericks smiles during a game against the LA Clippers on February 25, 2019 at STAPLES Center in Los Angeles, California. Copyright 2019 NBAE (Photo by Adam Pantozzi/ NBAE via Getty Images) 4 PREMIER OFFICE MAGAZINE © 2019 CoStar Realty Information, Inc. THIS ISSUE 44 Feature Property 8 KBS Hanley Corporate Tower News Notes 10 Trends Talent and Branded Environments 12 Service 2020 Service Champion Awards 14 Trends What Gen Z Wants in an Office 16 Feature Chasing Talent 20 Feature Interview Power On! Dirk and Jessica Nowitzki 48 Real Estate IQ Infrastructure Matters! Photo by Mathis Wienand/WireImage Mathis by Photo 32 Amenities Stress Free Environments 36 Leasing Ronny Shoss: Let’s Talk Leasing 40 Tenant Profile MedtoMarket 42 Market Watch 52 From the Mail Bag An Interview with Marc DeLuca A Word from our Tenants 46 Tenant Profile FP1 Strategies/PLUS Communications 50 Market Insight Nashville Reaches a Crescendo 58 Resource KBS Asset Management Team 6 PREMIER OFFICE MAGAZINE LEADERSHIP IN REAL ESTATE In today’s busy and sophisticated real estate marketplace, it’s important to make the most of every transaction. One law firm can offer clients decades of specific experience in every type of real estate asset, along with the assurance of working with a premier global real estate practice.* We want to be part of your team. www.dlapiper.com Robert H. Bergdolt, 4141 Parklake Avenue, Suite 300, Raleigh, NC 27612 DLA Piper LLP (US) | Attorney Advertising * DLA Piper named Real Estate Law Firm of the Year for more than ten years running (The International Who’s Who of Business Lawyers). 7 PREMIER OFFICE MAGAZINE KBS IN THE NEWS News Notes ACCENTURE TOWER WINS 2019 KBS HOSTS REAL ESTATE INTERNATIONAL TOBY AWARD PROS IN KOHLER KBS-owned Accenture Tower in Chicago claimed In July 2019, KBS an International TOBY Award in June 2019 at BOMA was pleased to International’s 2019 Every Building Conference & Expo in host 30 real estate Salt Lake City. The awards honor excellence in office building professionals from management in 16 categories based on building size and facility across U.S. for two type. The 1.5M SF Accenture Tower (formerly known as 500 West rounds of spectacular Madison) received the TOBY, or The Outstanding Building of the golf in scenic Kohler, Year, Award for buildings larger than 1M SF. Owned by KBS, the Wisconsin. Ranked LEED Gold, Class-A office tower hosts more than 90 companies among America’s employing 6,000 people. It also houses a two-story retail concourse 100 Greatest Golf Courses, Blackwolf Run® and Whistling and entrance to the Ogilvie Transportation Center — all of which Straits have hosted three PGA Championships as well as the brings more than 120,000 people through