NXT 50_RFP_BHFS_5.29.19_Link

50

Response for E.3.

Included in Market Commissions

Potential Additional Fee

Portfolio

Portfolio Assessment and Advisory

Yes Yes No

SCOPE OF SERVICES

Lease Administration and Software Systems Advisory

Varies based on Client Selections

Software Setup and Licensing Costs

All Visioning, Symposium Presentation and Workshops with Brownstein

Yes

FINANCIAL ANALYSIS

126mos term* <-132mos term* -> 165KSF

BROWNSTEINBASECASEand POTENTIAL OCCUPANCYALTERNATIVES - Denver $ inMillions ($'s inmillions)

Annual and Quarterly Services

$60.0

Cash

$55.7

TotalScenarioPre-TaxNPVCost ScenarioCapitaland1-TimeExpense -NetofTI [1]

$52.8

$48.0

Strategic Portfolio Review

Yes Yes Yes Yes Yes Yes

AnnuityEquivalent [2]

$45.0

Private Symposium for Brownstein

$30.0

Five Year Capital Plans

$17.4

$14.5

$15.0

$12.7

$9.5

Lease Abstracts Mark-to-Market

$5.7

$5.4

FINANCIAL ANALYSIS

$4.9

$3.9

$3.3

$0.0

$0.0

$0.0

$0.0

BASELINE -Current

BASECASE -Current+Expand18th

ALT1:ExpandandStayat41017th

ALT2:Relocate toBlock162atExpiration (May'23)

ALT3:Terminate41017th,Relocate (WFC)

V.2.0 1/22/18

BROWNSTEINBASECASEandPOTENTIALOCCUPANCYALTERNATIVES -Denver

<-------------------------------~5YearPeriod (May'18-May'23)----------------------------------->

<---------------------------------------------------------------15YearPeriod (May'18-Apr'33)--------------------------------------------------------->

V1.0_1-18-18

Baseline /Basecase BASELINE -Current

May'18 -May'23 (61months)

111.3KSFat 41017thStreetThroughMay'23

[1]Capitaland1-Time Items=Tenant ImprovementBuildoutPLUSMoveCostsPLUSTerminationFee (if applicable) LESSanyLandlordProvidedTenant ImprovementAllowance [2]TotalNPVenables comparisonof equivalent length investments.Annuityequivalent converts totalNPV intoa series of annual cash flows therebyproviding away to compareprojects / scenarios of unequal life. BASECASE -Current+Expand18th

ExpandOnto18thFloorandStay InExistingSpace (130.2KSF)at41017thThroughExpiration -May'23

LongTermOccupancyAlternatives ALT1:ExpandandStayat41017th

May'18 -Apr'33 (180months)

Portfolio Lease Audits (Initial Review) Detailed Audit and Award Pursuit

ExpandandStay LongTermat41017th (Take18thFloor,ExtendOtherSpace throughApr'33)

ALT2:Relocate toBlock162atExpiration (May'23) ALT3:Terminate41017th,Relocate (WFC)

ExpandandStayUntilExpiration (May'23)ThenRelocate toBlock162

Terminate41017thSpaceatApr'19OptionDateThenRelocate toExistingOption (WFCas sample)

BrownsteinHyattFarberSchreck | Cushman&Wakefield 16

AnalysisPeriod (May'18 -Apr'33)

180mos 12mos 12mos 12mos 12mos 12mos 12mos 12mos 12mos 12mos 12mos 12mos 12mos 12mos 12mos 12mos FYE 4/30/19 4/30/20 4/30/21 4/30/22 4/30/23 4/30/24 4/30/25 4/30/26 4/30/27 4/30/28 4/30/29 4/30/30 4/30/31 4/30/32 4/30/33

Contingency Fee, unless Prohibited by Lease

$'s inMillions

Annuity Equivalent 1

TotalP-TCASHExpense

TotalNOM$

TotalNPV$

Baseline /Basecase

May'18 -May'23 (61months) 111,307SF

BASELINE -Current

$17.4 $20.8

$14.5 $17.4

$3.3 $3.9

$3.3 $3.1 $3.5 $3.6 $3.7 $0.3 $3.9 $3.8 $4.1 $4.3 $4.4 $0.4

BASECASE -Current+Expand18th

130,163SF

LongTermOccupancyAlternatives

May'18 -Apr'33 (180months)

ALT1:ExpandandStayat41017th

$80.2 $92.4 $84.0

$48.0 $55.7 $52.8

$4.9 $5.7 $5.4

$4.4 $4.5 $4.7 $4.8 $4.9 $5.1 $5.2 $5.3 $5.5 $5.6 $5.7 $5.9 $6.0 $6.2 $6.3 $3.9 $3.8 $4.1 $5.2 $6.3 $15.1 $5.4 $5.5 $5.7 $5.8 $6.0 $6.2 $6.3 $6.5 $6.7 $7.0 $9.0 $4.4 $4.6 $4.7 $4.8 $4.9 $5.1 $5.2 $5.4 $5.5 $5.6 $5.8 $6.0 $6.1

130,163SF 105,000SF 120,000SF

ALT2:Relocate toBlock162atExpiration (May'23) ALT3:Terminate41017th,Relocate (WFC)

Capital /1-TimeExpense Items: Netofany LLProvidedTI$s 2

TotalNOM$

Baseline /Basecase

May'18 -May'23 (61months) 111,307SF

BASELINE -Current

$0.0 $0.0

$0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0

BASECASE -Current+Expand18th

130,163SF

Transactional Services

LongTermOccupancyAlternatives

May'18 -Apr'33 (180months)

DRAFT _AlternativeComparison_1/26/2018 Page4 130,163SF

ALT1:ExpandandStayat41017th $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $9.5 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $3.7 $9.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $12.7 [1]TotalNPVenables comparisonofequivalent length investments.Annuityequivalent converts totalNPV intoa seriesofannual cash flows therebyprovidingaway to compareprojects / scenarios ofunequal life. [2]Capitaland1-Time Items=Tenant ImprovementBuildoutPLUSMoveCostsPLUSTerminationFee (ifapplicable) LESSany LandlordProvidedTenant ImprovementAllowance $0.0 $9.5 ALT2:Relocate toBlock162atExpiration (May'23) ALT3:Terminate41017th,Relocate (WFC) 105,000SF 120,000SF

Visioning Sessions for Specific Project/Office Needs Assessment, Consensus Building

Yes Yes Yes Yes Yes Yes Yes

BrownsteinHyattFarberSchreck | Cushman&Wakefield 17

Budgeting and Projections

Market Evaluations

BROWNSTEIN HYATT FARBER SCHRECK DENVER EFFICIENCY & COST MATRIX BASED ON 130,059 SF | 141 ATTORNEYS | 5/31/2023 LXD

Negotiations

DRAFT _AlternativeComparison_1/26/2018 Page5

NEW CONSTRUCTION

FULLYESCALATED 2019RENT

FULLYESCALATED 2023RENT

Financial Analysis

FULLSERVICERENTVARIABLES

$26.04 $26,040 $24,009 $22,134 $21,066 $19,530 $18,228 $16,926 $15,624 $14,322

$27.54 $27,540 $25,392 $23,409 $22,280 $20,655 $19,278 $17,901 $16,524 $15,147

$30.00 $30,000 $27,660 $25,500 $24,270 $22,500 $21,000 $19,500 $18,000 $16,500

$35.00 $35,000 $32,270 $29,750 $28,315 $26,250 $24,500 $22,750 $21,000 $19,250

$40.00 $40,000 $36,880 $34,000 $32,360 $30,000 $28,000 $26,000 $24,000 $22,000

$45.00 $45,000 $41,490 $38,250 $36,405 $33,750 $31,500 $29,250 $27,000 $24,750

$50.00 $50,000 $46,100 $42,500 $40,450 $37,500 $35,000 $32,500 $30,000 $27,500

$55.00 $55,000 $50,710 $46,750 $44,495 $41,250 $38,500 $35,750 $33,000 $30,250

$60.00 $60,000 $55,320 $51,000 $48,540 $45,000 $42,000 $39,000 $36,000 $33,000

LegalSectorAdvisoryGroup | ADVISING FOREXCELLENCE

1,000 SF/ATTY

CURRENTOCCUPANCY 922 SF/ATTY

850 SF/ATTY

Project Management (Budgeting, Scheduling, Advisory) Project Management (Execution of a Contracted Project) Standards Implementation

CAPACITYOCCUPANCY 809 SF/ATTY

750 SF/ATTY 700 SF/ATTY 650 SF/ATTY

Varies; 2% of Costs is Typical

TARGETOCCUPANCY 600 SF/ATTY

550 SF/ATTY

“RIGHT-SIZING” IMPACT:

Yes Yes

2023Capacity: 161Attorneys (20VacantOffices) 809SF/attorneyor130,059SF

Future “RightSizing”: 141Attorneys 600SF/attorneyor84,600SF

2023Occupancy: 141Attorneys 922SF/attorneyor130,059SF

+ $231,000 per Equity Partner Over 15 Years

$3.6millionannual rent

$3.6millionannual rent

$2.3millionannual rent

Ongoing Lease Audits (Initial Review)

VacancyCost:$445,597annual rent

$42,400annualperEquityPartner (85)

$27,000annualperEquityPartner (85)

$636,000perEquityPartner (15 years)

VacancyCostperEquityPartner (85):$5,242 $405,000perEquityPartner (15years)

Contingency Fee, unless Prohibited by Lease

Notes: 1.Rents donot include estimated expense passthroughs over base years.

Ongoing Lease Audits (Detailed Audit or Award Pursuit)

LegalSectorAdvisoryGroup | ADVISINGFOREXCELLENCE

Cushman & Wakefield | Brownstein Hyatt Farber Schreck

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