Real Estate Recap

YOUR OFFICE TENANT REPRESENTATION EXPERTS

SNODGRASS/MADORSKY TEAM

KEVIN SNODGRASS Vice Chairman

MEGAN MADORSKY Director

TEAM STATS

44 +30M SF OF TRANSACTIONS YEARS OF EXPERIENCE

team experience

35 AC / 500,000 SF PURCHASE / DESIGN BUILD LEASE

2,100,000 SF RELOCATION, EXPANSION, EXTENSION

332,000 SF HQ/BTS LEASE

275,000 SF RELOCATION/ BTS

225,000 SF LEASE RESTRUCTURE

170,000 SF DESIGN BUILD & EXPANSION

50,000 SF RELOCATION

46,000 SF RELOCATION, EXPANSION & RENEWAL

40,000 SF EXPANSION & RENEWAL

30,000 SF RELOCATION & EXPANSION

30,000 SF EXPANSION & RENEWAL

20,000 SF RENEWAL

20,000 SF RENEWAL

15,000 SF HQ LEASE

14,000 SF EXPANSION & RENEWAL

INDUSTRY TRENDS RELATING TO YOUR OFFICE SPACE

EXPANDING/CONTRACTING THE SIZE OF MY SPACE

USING REAL ESTATE TO REINFORCE CULTURE

COST SAVINGS TO CONSIDER

HOW DOES MY CURRENT RENT COMPARE TO MARKET RENT

what’s on your mind

CUSTOMIZED APPROACH

TO FIT YOUR NEEDS

RECRUITING EMPLOYEES BACK TO THE OFFICE

trends to watch

FLIGHT TO QUALITY Tenants on average are seeking more amenitized spaces, in an attempt to recruit and retain employees. As a result, Class A office is being leased and absorbed while Class B/C office buildings see a large amount of supply being vacated.

SUBLEASE SPACE CONTINUES TO CHURN

Sublease availability sits at 5.3 MSF giving tenants options for plug-and-play spaces.

BUILDING’S DEFAULTS TO WATCH FOR THE NEXT 12 MONTHS

With approximately $2 billion of office loans reaching maturity within the next 12 months, many office landlords are looking to refinance and integrate unique features into their buildings in order to reinvigorate leasing velocity.

NEW CONSTRUCTION CONTINUES WINDING DOWN

Construction pipeline remains limited with two for lease buildings currently under construction.

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DEFINE REQUIREMENTS

DEVELOP ANALYSIS & STRATEGY

SURVEY MARKET

Situational Analysis • Refine understanding of client’s business, spatial, and financial requirements • Prepare summary analysis and report Strategy Development • Create baseline financial analysis • Identify alternative location scenarios • Prepare preliminary budgets for relocation scenarios • Analyze alternatives against baseline financial analysis • Analyze alternative transaction structures • Compile employee information and develop workforce profile • Quantify potential government incentives • Prepare documentation of strategy and criteria for requirements

• Scrutinize requirement • Ascertain likely components of optimal solution • Define specialized expertise needed • Assemble team

• Conduct comprehensive market survey • Analyze prevailing market conditions & forecasts • Match potential facilities with Client’s requirements

STRATEGY OVERVIEW

Existing lease abstract and project schedule

Situation report, strategy and criteria documentation, baseline financial analysis, initial scenario financial analyses, transaction structure analysis, recommendation for evolving needs

Market survey book of alternatives locations, market analyses, summary of alternatives, location map of alternatives, and building fact sheet for alternatives

draft the plans

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EXPERT CONSTRUCTION SERVICES

QUALIFY & SELECT ALTERNATIVES

FINALIZE NEGOTIATIONS

PROVIDE ONGOING SERVICE

Tour / Request for Proposal • Preview options • Conduct tours of the most qualified option • Prepare and issue RFP Proposal Analysis • Evaluate proposals • Present counter proposals • Perform financial analysis of each option • Perform in-depth financial analyses of short list

• Formulate negotiation strategies • Make final recommendation • Present recommendation to management • Draft letter of intent • Provide Client’s attorney with the final, negotiated business terms • Review lease terms and conditions with Client and Client’s attorney

• Oversee the planning, programming, design, project accounting and controls, implementation management and total relocation planning • Provide the costs of all options, which will be integrated into the financial analysis of option

• Prepare and maintain lease abstract • Prepare transaction summary book and value added summary • Prepare critical date report • Monitor critical dates and notify client • Annually review escalation calculations

• Negotiate work letter • Negotiate final lease agreement

DELIVERABLES

Tour book, short list of alternatives, RFP; physical, qualitative, and financial analyses; counter proposals and negotiation tracking matrix

Letter of Intent and lease document with comments

4 Month Duration

Transaction summary book, lease abstract, critical-data report, and value-added summary

Planning and construction period

preliminary project schedule

NEW LOCATION - STANDARD SCOPE

18 - MONTH PROCESS FROM LEASE EXPIRATION

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STRATEGY DEVELOP

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MARKET REVIEW

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SPACE QUALIFICATIONS & SELECTION

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ARCHITECT SPACE PLANNING & PERMITTING

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NEGOTIATIONS

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MAXIMUM LEVERAGE WINDOW

Our Project Team has developed a preliminary plan that details the specific steps and timeline to meet the objectives for your Houston location. The Project Team will oversee an efficient and comprehensive process that results in improved space efficiency, minimized occupancy costs and optimal lease terms, while also achieving your specified objectives. The following is a graphic representation of our approach from project initiation through completion which could accelerate or slow depending on the ultimate solution.

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TENANT CONSTRUCTION & MOVE-IN

ONGOING CLIENT SERVICE

LEVERAGE DECREASES

preliminary project schedule

18 - MONTH PROCESS FROM LEASE EXPIRATION

SPACE QUALIFICATION & SELECTION

DOCUMENTATION

MARKET REVIEW

• Understand Drivers - Cultural - Financial - Operational

• Market Survey • Alternative Building • Analysis • Tour Properties • Submit RFPs

• Proposal Analysis • Pre-Design • Technical Review of Sites or Properties • Selection of Shortlist Facilities

• Workplace Strategy • Employee Drivetime Study • Preliminary Financial Analysis • Develop Comprehensive RFP

2-3 MONTHS

2 MONTHS

2-3 MONTHS

ARCHITECTURE, TENANT CONSTRUCTION & MOVE-IN

ONGOING CLIENT SERVICE

NEGOTIATIONS

• Ongoing Financial Analysis • Construction Cost Estimates • LOI • Lease/Purchase Negotiation • Lease Execution

• Space Planning • CD’s and Permitting • Pre-Construction • Construction Management • Move-In • Final Details

• Lease Abstract • Critical Date Management • Annual Operating

Expense Review and Audit

• Landlord Interface • Maintenance Issues • Portfolio Optimization

2-3 MONTHS

6-16 MONTHS

ONGOING

WORKPLACE STRATEGY

• Align your real estate operation investment with workplace experience goals • Evaluate the workplace experience and identify reasons for the office with an employee sentiment survey:

• Improve experience • Increase engagement • Drive revenue

PROJECT & DEVELOPMENT SERVICES (PDS)

• Our team will supply the expertise and data to support effective decision-making and provide the best and most effective project delivery • Your partner working to protect your investment • 80% of cost savings occur before construction starts • Client benefits:

• Drive cost savings and time management • Mitigate risk + increase accountability • Deliver on time/reduce time • Competitive pricing

ESG Our goal is to help our clients prosper in the face of shifting consumer demands, investor expectations and regulatory changes: • Develop/implement programs to mitigate risks • Sustainable leasing strategies • Net zero goals and active steps to achieve them • ESG baselines and benchmarking • Satisfy investor expectations • Drive company value

additional C&W services

400 OFFICES

60+ COUNTRIES

5.1B SF MANAGED

$9.5B 2023 REVENUE USD

52,O00 EMPLOYEES

C&W overview

OUR PEOPLE MAKE US

We believe you get out of life, what you put into it. This is why we are making the most of all the incredible opportunities we have as a world leader in commercial real estate, for our people, our clients and our communities. Having the most ambitious, bright and inclusive people working with owners and occupiers, means we are able to make the most of our clients’ real estate investments. We have the insights, awards, history and reputation to make big things happen. Our reputation is what we value the most but we are proud of our recognition as an exceptional employer and client partner.

INDUSTRY & SPECIALTIES

• 3PL • Airports & Aerospace

• Land • Legal Services • Life Sciences • Logistics & Industrial • Multifamily • Net Lease Investment • Not-for-Profit • Office • Ports & Intermodal • Public Sector • Rail • Retail • Sports & Entertainment • Technology

Whether there is just land, or lots of things on it, we help make the most of it. With specialists in everything - from office to aerospace, retail, logistics as well as hospitality technology and life sciences. If it gets done at scale, we are right there to help make an impact.

• Automotive • Build-to-Suit • Data Centers • E-Commerce • Education

• Energy (Oil & Gas) • Financial Services • Flexible Workplace • Food & Beverage • Global Supply Chain • Government

• Healthcare • Hospitality

why C&W?

TOP REASONS TO PARTNER WITH A CUSHMAN & WAKEFIELD TENANT ADVISOR

TENANT’S ADVANTAGE

Focus on your business; let us focus on your real estate

SAVE TIME

Professional representation won’t add to your real estate costs

NO ADDED COST

See all the options; even the ones that aren’t there

COMPREHENSIVE OPTIONS

Capitalize on C&W’s Negotiation Expertise

NEGOTIATION LEVERAGE

Protect your relationship

BUFFER

EXPERT CONSTRUCTION SERVICES

Manage your costs

Follow-up services

CONTINUE ADDED VALUE

THANK YOU

KEVIN SNODGRASS Vice Chairman +1 713 877 8539 kevin.snodgrass@cushwake.com

MEGAN MADORSKY Director +1 713 877 8230 megan.madorsky@cushwake.com

©2024 Cushman & Wakefield. All rights reserved. The material in this presentation has been prepared solely for information purposes, and is strictly confidential. Any disclosure, use, copying or circulation of this presentation (or the information contained within it) is strictly prohibited, unless you have obtained Cushman & Wakefield’s prior written consent. The views expressed in this presentation are the views of the author and do not necessarily reflect the views of Cushman & Wakefield. Neither this presentation nor any part of it shall form the basis of, or be relied upon in connection with any offer, or act as an inducement to enter into any contract or commitment whatsoever. NO REPRESENTATION OR WARRANTY IS GIVEN, EXPRESS OR IMPLIED, AS TO THE ACCURACY OF THE INFORMA TION CONTAINED WITHIN THIS PRESENTATION, AND CUSHMAN & WAKEFIELD IS UNDER NO OBLIGATION TO SUBSEQUENTLY CORRECT IT IN THE EVENT OF ERRORS.