Burns & McDonnell RFP Response_FINAL

HO

REQUEST FOR PROPOSAL

15. Provide outlines of at least three strategies that would better position the Denver office in the long term. B&M is timing the market PERFECTLY, so we have given a lot of thought on how we can maximize the leverage your requirement will drive in the market and have organized what we believe would be the top four (4) strategies we could consider executing along with just one (1) sample building that would fall into each respective strategy. We then ran a financial analysis for each of the proposed strategies that is based on the actual proposal we received from B&M’s current landlord to renewal and then inserted terms we have already negotiated for other clients for each of the relocation options. There is additional information on each of the sample buildings in our response to Question #16.

9785 MAROON

9601 PANORAMA

STRATEGY 2: SUBLEASE AT A DISCOUNT WITH A RUNWAY FOR GROWTH There could not be a better time to be a large office tenant looking for office space in the Southeast Suburban submarket. There are nearly 30 options over 70,000 SF with a few of them being high quality plug/play sublease options. If B&M views their Denver offices as a long term growth engine for the company, then one strategy would be to negotiate a phased occupancy (2-3 years) with a sublandlord that allows B&M to not place any limitations on your growth. I would represent to the market that your requirement is something less then what you desire and then let the sublandlord’s come to you with ability to take over an entire building as they will be motivated to not incur the downtime and costs to multi-tenant the asset. This is exactly what I executed on behalf of Computershare when we did a 282,000 SF sublease from AECOM at a $17/SF Gross Rate over a 10-year sublease term that included over $8M of furniture, fixtures, and AV equipment. This strategy could be deployed with Comcast or Jacobs sublease options.

STRATEGY 1: RENEW ON SHORT OR LONG TERM BASIS The renewal option is almost always in play for clients either as a viable alternative or at least as leverage even if the intent is to relocate. Our team has been fortunate to negotiate the existing lease and have already received an initial proposal (per B&M’s direction) from your landlord to renew on a short term (4 Years) and long term (10 Years) basis. Depending on B&M’s objectives, it could make sense to renew in order to minimize disruption. Additionally, if you do a short term extension that will provide you a few years to determine the workplace strategy for Denver (or across portfolio) and implement once you have more data around the future of work following the pandemic. There are a lot of companies that are still working remotely and just don’t have enough clarity on their post-COVID workplace strategies, so if provided the opportunity they have done short term extensions to provide time to make the right long term solution.