Corporate Social Responsibility Report 2019 | Cushman & Wakefield

OUR IMPACT ON CLIENTS (203-103, 203-2)

BUILDING THE FUTURE OF REAL ESTATE Our clients rely on us to help them navigate the ever-changing landscape of commercial real estate. Whether it’s keeping up with new technologies, trends or work preferences, there’s so much to stay on top of in order to stay competitive and relevant in today’s fast-paced world. It’s also critical for attracting and retaining top talent. Today’s employees want to work for a company that is not only focused on its environmental footprint, but also on providing a workplace that promotes the health and wellbeing of its employees. In this section, we share some of the ways in which we added sustainable value in real estate last year by helping our clients go green, embedding sustainable practices throughout their portfolios, enhancing the way people live and work, and helping them prepare for what’s next in their real estate cycles.

Investing in the Future of Real Estate through Research

KEEPING OCCUPIERS AND INVESTORS ON THE EDGE OF WHAT’S NEXT

Cushman & Wakefield’s research teams around the world make an impact by producing timely insights, thought leadership, market briefings and webinars that cover emerging trends and developments in the industry and economy. In 2019, we continued to enhance our research coverage of impactful topics by publishing more than 2,600 research publications, which are readily accessible on our website. We also publish The Edge Magazine , Cushman & Wakefield’s global publication featuring innovative thought leadership on the latest trends impacting real estate occupiers and investors, authored by our own subject matter experts.* *The information and outlooks contained in these reports reflect the state of the economy and markets in 2019, and do not represent current forecasts. Visit cushmanwakefield.com for the latest insights and thought leadership.

Cities are facedwith some challenges thathave arisen from the increasingpopularityofmicro-mobility.One major concern for cities is thenumberofdockless e-scooterspilingupon sidewalks, leading some to add designatedparking fore-scooters to alleviate congestion. Forexample, in-street zoneshavebeen created for docklesse-scooters andbikes inSantaMonica,California. And, inWashingtonD.C., street corralshavebeen created by repurposingon-streetparking spaces. Additionally, some cities aremanaging increased congestionby turning togeofencing, avirtualperimeter that limitswhere scooters canbedriven andparked. InSan Jose,California,geofencing isbeing considered todeactivate scooterswhen they’reon sidewalks and reactivatewhen they are inbike lanes. InSantaMonica, Bird, ane-scooter sharing company, created a speed zone thatgeo-speeds scootersdown to amaximum speedof8 mph (from 15mph)onbeachbikepaths . Citieshavebegun implementing rules to regulate operators in theirmarkets,whichhas resulted in anew sourceof revenuegeneration formunicipalities.Someof these regulationshave resulted inpermits and/or licensing fees,withothers includingper trip andpervehicle fees. Relocation andvehicle impoundmentshave resulted in someheftyfines. Despite thevarious complications thate-scooter sharing hasbrought to some cities, thepublicviews them as a viable alternative for short-distance travel.According to a recentPopulus surveyofmore than7,000 individuals in 11 cities, support formicro-mobility is strongwithmore than 70percentof those surveyedhaving a favorableopinion. Other formsof transportation, includingbikes, ridesharing andpublic transit,garner approximately50percent positive consumer sentimenton average, illustrating the popularityofe-scooters.

E-scooter sentimentby city

0% 20% 40% 60% 80% 100%

SanFrancisco NewYorkCity Seattle San Jose LosAngeles WashingtonD.C. Chicago Denver Austin Atlanta

79%

21%

75% 76% 76%

25% 24% 24%

72%

29% 28%

67% 68% 69% 71%

33% 32% 31%

Micro-mobility mania

52%

48%

Positive view

Negative view

Source:Cushman&WakefieldResearch,Populus

Micro-mobility: Generally refers to singleoccupant modesof transportation such asbikes and electric scooters (e-scooters).

E-scooters andbikes, referred to asmicro-mobility, are reshaping transportation in cities around the world.The futureof transit isfilledwith lightweight electricvehiclesgivingpeople the ability to travel andmovequickly and cheaply.Micro-mobility is oneof the fastestgrowing transportation trends in recenthistory in termsof adoption. Bike sharinghasgrown atmore than a 14percent compound annualgrowth rate (CAGR)over the last fiveyears.However, the adoptionofe-scootershas surpassed this—capturing3.6percentmarket share¹ in the almost 150U.S. citieswhere theyoperate since their launch in late2017. Bothhavedisrupted ridesharing services for short trips,which isn’t surprising since46percentof car trips inurban areas are less than threemiles¹, and micro-mobilityoptions areoftenmore convenient than taxis,public transportationorwalking.They can alsobe cheaper—Quartzestimates that an e-scooter ride is$3 to$4 cheaperper ride for a one- to two-mile trip² compared to a ridesharing trip³.

6 THEEDGE

*Alldollar amounts listed are inUSD.

1 Based on percentage of peoplewhouse the service 2 “SharedMobility in theU.S.: 2018”, (April 2019),www.nacto.org, accessedApril2019 3 According to aNovember 28, 2018 interviewofDavidEstrada, a toppolicy expert fromBird byGoverning.com.

4 THEEDGE

Micromobility Learn more about one of the fastest growing transportation trends in recent history in terms of adoption.

Industrialwarehouse& distribution

Third-party logisticsproviders (3PLs) have longprovided shared servicesand expertiseneeded toassistcompanies withwarehousinganddistribution needs.Newcompanies, suchasFLEXE, haveemergedover thepast fewyears toprovidedifferent typesofflexibility andcost savings for tenants in the ecommerce fulfillment, retaildistribution, inventoryandoverflow space.

Theboundariesof space anduse areblurred aswe live in an increasingly “coeverything”world.The sharing economyhas eliminatedmarket inefficiencieswhileproviding cost savings for consumers and tapping into thedemand for increased access.The shorter-term sharingofhomes, music and vehicles arebleeding into slightly longer-term sharingofoffices, retail space and apartments—representing shifts in consumerhabits and varyingdegreesofdisruption. Coeverything BLURRING THE BOUNDARIES OF MIXED-USE SPACES

Property type: Industrial Lifecycle:Mature

Server& cloud storage Thedatacenter industrycontinues to usecolocationasamodel, inwhich companiescan lease spaceand services for theircomputingneeds alongsideotherenterpriseswith similar requirements.Thesearrangements reducecosts forclientswhile removing thehassleofmanaging thebulkof their IT services (seearticleonpage20, “Data centers: fromniche tomainstream”).

Property type:DataCenter Lifecycle:Mature

Pop-up shops In an increasinglydigitalworld,pop-up shops are an avenue foronlinebrands todip intophysical store space. It is beneficial for smallbusinessoperators hoping tobuild an in-person connection withnew customers and for larger companieswhowant to temporarily occupy space inhigh-traffic locations. Additionally,pop-ups canhelp establishedbrands efficiently testnew conceptsorbuildpublic relationsbuzz.

Coeverythinghas furthered the evolutionof themixed- use trendbyproviding flexibleoptions for integrating complementary uses at a single site.Quite literally, thewallsbetween living,working, traveling and shopping arebreakingdown, delivering customizable operations for customers, occupiers and investors.

Foodhalls Foodhalls, the coeverythingdining solution, allow for sharing amenities like eating areas and kitchens.Thesemarket- stylehubsoffer convenience andhigher traffic to food serviceproviders in an industrywhere themedian lifespanof a restaurantwithfiveor fewer employees isbetween3.75 and4.5 yearsoverall.⁶

Property type:Retail (dining) Lifecycle:Growth

Property type:Retail Lifecycle:Growth

JOSHKURILOFF ExecutiveViceChairman GlobalAdvisoryBoard josh.kuriloff@cushwake.com

DESPINAKATSIKAKIS HeadofOccupierBusiness Performance despina.katsikakis@cushwake.com

6 “Only theBadDieYoung:RestaurantMortality in theWesternUS.”

DAVIDC.SMITH VicePresident,AmericasHead ofOccupierResearch david.smith4@cushwake.com

CAITLINSIMON ManagingDirector InvestorServices caitlin.simon@cushwake.com

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SUSANTJARKSEN ManagingDirector

KRISTINAGARCIA AssociateDirector,Capital MarketsMultifamilyResearch kristina.garcia@cushwake.com

MultifamilyAdvisoryGroup susan.tjarksen@cushwake.com

32 THEEDGE

Coeverything Explore how the boundaries of space and use are blurred as we live in an increasingly “coeverything” world.

32 | CORPORATE SOCIAL RESPONSIBILITY REPORT 2019