Skip to content
Learn How KBS is Creating Safe Work Environments
kbs logo
  • Investors
    • KBS Capital Markets Group
  • Properties
  • News & Insights
  • About Us
  • Contact

    Our Offices

    Corporate Headquarters

    800 Newport Center Drive, Suite 700
    Newport Beach, CA 92660

    (949) 417-6500

    info@kbs.com

    Washington DC Office

    3003 Washington Boulevard, Suite 950
    Arlington, VA 22201

    (202) 822-1230

    Facebook-f Twitter Linkedin-in Instagram
    Corporate Headquarters
    800 Newport Center Dr., Suite 700 Newport Beach, CA 92660
    info@kbs.com
    (949) 417-6500
    New York Office
    590 Madison Avenue, 26th Floor New York, NY 10022
    (212) 644-6662
    Washington, DC Office
    3003 Washington Boulevard, Suite 950, Arlington, VA 22201
    (202) 822-1230
    Contact Us
    KBS is an SEC-registered full-service investment adviser adept in various property and product types.
Learn How KBS is Creating Safe Work Environments
kbs logo
ArtboardCreated with Sketch.
News & Insights

KBS Talks Strategy as it Celebrates Three Decades in Business: Q&A with Luke Hamagiwa, VP/Asset Manager of the CRE Firm’s Eastern Region

  • May 18, 2022
News & Insights

KBS Talks Strategy as it Celebrates Three Decades in Business: Q&A with Luke Hamagiwa, VP/Asset Manager of the CRE Firm’s Eastern Region

  • May 18, 2022
Luke Hamagiwa serves as the market leader responsible for carrying out investment objectives throughout the Mid-Atlantic and Northeastern United States on behalf of KBS REIT, pension fund and sovereign wealth fund clients. Within these markets, he is responsible for the execution of strategic business plans for each of the assets within his portfolio along with new acquisition opportunities and joint-venture partnerships.

We recently caught up with the busy executive for his thoughts on KBS’ strategy for acquiring and enhancing assets.

First off, can you share a little about the KBS acquisition strategy?

Location is critical to the KBS acquisition strategy: how and where people live and work. We look for areas that are well-positioned for long-term growth supported by strong local employment, friendly business environments, access to transportation and amenities, and expanding demographics. We especially like — and have experienced great success — in secondary markets, many of which have proven to be more resilient recently compared to their primary/gateway counterparts. 

What are some key characteristics KBS looks for in an asset?
We hear a lot about “work-life balance,” which in a post-pandemic era is more important than ever. Highly-amenitized buildings or those close to lifestyle amenities that make the workdays of tenants and their employees more enjoyable, collaborative, and convenient. KBS also looks for buildings with good floor plans that offer more flexibility to create unique and exclusive experiences.

KBS’ modernization strategy is key to the success of its assets. What does this entail?

KBS takes a very holistic approach to each property. We look at every element and detail to determine what to keep, what to eliminate, and where there is value-add potential. Sometimes this entails small improvements to common areas in an already top-quality property; other times it means starting with a building that may be a few years old or is not as competitive because of lackluster amenities. KBS then makes strategic enhancements that are unique to that property and that market — elevating it — knowing that these improvements will create long-term tenant satisfaction, which directly impacts both the income and the value of the property. Our goal is to better serve our tenants by understanding their journey, which aligns with KBS’ strategy of owning and operating best-in-class commercial real estate.

Property improvements are an expensive expense. How does KBS manage this?

Providing our tenants with a premier work environment takes capital. Something we evaluate and underwrite before every deal we make. If we over–leveraged all of our properties, we would have less capital to make critical enhancements to other KBS assets. These improvements are an essential investment that allow our tenants to attract and retain employees.

Additionally, KBS continues to research and implement ESG initiatives at our properties, including the integration of EV car-charging stations, internet connectivity certification through WiredScore, and our recent verification completion of more than 14 million square feet of Class A office space in our portfolio to achieve the UL Verified Healthy Building Mark for Indoor Air.

KBS also recently appointed a new ESG manager, Apaulo Malloy, who will help direct the company’s ESG efforts as a proactive strategy to drive a more sustainable future. She’s is part of the company’s new “Green Team,” working to identify and track KPIs for our ESG goals. Apaulo will spearhead initiatives that will fortify our overall strategy and better serve KBS’ tenants and partners.

Please give an example of a KBS property modernization project.

A good example is Accenture Tower, a top-tier, 1.46 million square-foot trophy office tower in downtown Chicago, Illinois. Here, KBS recently completed more than $22 million in upgrades, including a new office lobby inspired by the hospitality industry, a state-of-the-art conference center with a pre-function area, a contemporary tenant lounge featuring an outdoor terrace in a garden like setting, with two fire pits. More employers are returning back to the office and rely on landlords to help attract their teams back to the workplace. 

Located in high job-growth markets, our properties are home to some of the biggest companies in the world. Our success stems from cultivating prime commercial real estate communities for our tenants, who through their employees, innovation and pursuit of change, cause local businesses to thrive and create a higher demand for commercial real estate.

To learn more about commercial real estate and trends in retail, visit KBS.com/Insights.

More Articles

Industry Trends

Underwriting the Perceived Instability of Short-Term Office Leases

  • February 16, 2021
The threat of shorter office lease terms has been looming over the commercial real estate industry for several years. Companies first braced for the potential impact of new standards from the International Accounting Standards Board (IASB) recognizing all leases on the balance sheet, which took effect in January 2019. Then, the office leasing world was hit with additional challenges from COVID-19 as many companies opted to work from home and re-evaluated the role of their physical office space.
Industry Trends Insights

Envisioning the Future of the Built Environment

  • January 29, 2021
Amidst the ongoing crisis, built environments are at the front lines of change and will play a huge role in creating a more resilient world going forward. Office architects are re-envisioning the future of the workplace—where and how we work. Unfortunately, there is no crystal ball to predict exactly what the new future-oriented office will look like, but what we do know is flexibility and adaptability will be key in resilient design.
Industry Trends

Why Texas is becoming a commercial real estate powerhouse

  • January 21, 2021
It looks like 2021 will be another big year for Texas, a year when a lot of major companies will make the jump and move to the Lone Star state. Just look at these transitions:
See All
Our Company
  • Investors
  • Properties
  • News & Insights
  • About KBS
Resources
  • Premier Office Magazine
Get in Touch
Facebook-f Twitter Linkedin-in Instagram
  • Careers

© 2023 KBS

  • Terms & Conditions
  • Privacy Policy
  • Home
Investors
  • KBS Capital Markets Group
  • Properties
  • News & Insights
  • About Us
Contact Us
  • Corporate Headquarters
  • New York Office
  • Washington, DC Office