NovoNordisk_CushmanWakefield_RPF_FINAL

Sample Deliverables

EMEA United Kingdom

Gloucester, UK Building,Business Park

City

PropertyName

Warehouse / Light Industrial /Office

Type: Class:

GBP6.50 / ft²/year

USD9.35/ ft²/ year

Primemarket rent:

Lease & Market Overview Examples NN has shown great interest in seeing an example of a “Lease and Market Review” report and Cushman & Wakefield agrees that these one-page overview documents are foundational to acquiring a comprehensive understanding of the real estate portfolio. These reports will also help the NN Corporate Facilities Team identify opportunities to take proactive strategic action. These reports will be tailored to the scope of available information, aesthetic preference, corporate business drivers, etc. to be most impactful to NN. We have included example reports that reflect customization for different clients to give you a better understanding of how flexible this process is.

A

↗

Rental trend:

NewportHoldings Ltd

Landlord:

37,160m 2

27,035 ft 2

400,000 ft²

Demand/ take-up (2015):

TotalBuildingArea:

↗

Take-up trend:

2001

YearBuilt:

4,645m 2

50,000 ft²

New supply (2016): CurrentVacancy:

BuildingVacancy%: 25% BuildingAskingRent : GBP5.75 /ft²/ year

USD8.26 / ft²/ year USD8.23/ ft²/ year

5%

↘

Vacancy trend:

GBP5.73 / ft²/year

EstimatedMarketRent forPremises:

PropertyAddress

24/09/2001 23/09/2021

LeaseStart: LeaseExpiry: LeaseBreak: PropertyArea:

City SAMPLE Area (sqft) BreakDate ExpiryDate Passingrent (USD/ sqft/year) TerminationOptionUpon Expiry: None 27,035 ft 2 CurrentPassingRent: GBP5.73/ ft 2 /month USD8.23/ft 2 / year BreakOption: None RenewalOption: Leaseincludedwithin theSecurityofTenure provisionsof the Landlord&TenantAct1954 Atleaseexpiry,or inaccordancewith the SecurityofTenureprovisionsof the Landlord& TenantAct1954

Property

Building, BusinessPark

Stonehouse

27,035

-

23/09/2021

8.23 Assignmentand sublettingofwholeor subletting ofapermittedpart,arepermittedwithprior consent from the Landlord. TheTenant is responsible for yieldingupwith vacantpossession inaccordancewith the covenants contained in the lease . -

Assignment/Sublease:

Building3

Weybridge

-

-

10/02/2023

Reinstatement:

RecommendedStrategy

 At theendof2015 therewasonlyoneyears supplyof industrial stock remaining in themarket.  Despite this, t vacant spacewithin thebuilding itself comprisesof first flooroffices immediately adjoiningawarehouse / light industrial spaceandwithinapredominantly industrialarea,and thus is lessdesirable than theotheravailableout of townofficeaccommodation in themarket.  Theoutof townofficemarket in t isparticularareahasgenerally lesswell than the industrial sector,withoffice take-up in theUKbeing focusedon Londonand themajor regionalCityCentres. Opportunities&Risks  Despite thepotentialdifficulties involved in sub-letting thevacantoffice spacehere, the revised lease terms recently achieved includinga37% rentaldiscount represented anexcellentdeal for client. Wewould recommendmakingefforts to sublet thevacant first flooroffices,asany typeof letting could lead to further rentalandbusiness rates savings. Alongside this,wewould recommend implementing a reviewof theexistingbusiness ratesvaluation,possibleappeal (if appropriate),and ratesmitigationmeasures to tryandachieve someadditionalcost savings. RecommendedStrategy

 Cushman&Wakefieldhave recently renewed the leaseatStonehouse, savingClient circa.40%on rental costs.

 Cushman&Wakefieldhavealsoevaluated theoccupationatWeybridgeand found thepremises tobewellaligned to currentoccupationalneeds.  Forallproprieties in theUKwewould recommend the reviewofallexistingbusiness ratesandpossibly theappealof them, inorder toachieveadditionalcost savings.

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Local Market Intelligence

ATLANTA, GA 3333 Piedmont Road

Annual Spend

Mark to Market

Occupancy Percentage

Costper FTE

SquareFeet perFTE

$2.35mm $2.17/SF Over

91.9% $8,472

227

Strategic Insights

PORTFOLIO INSIGHTS

BUILDINGOVERVIEW Owner

MARKETOVERVIEW SubmarketName

• The clienthas amixof classA corporate officesand large logistics spaces throughout the continentalUS. • Themajorityof their portfolio isunder currentmarket rates and are at riskatexpiration. • There is approximately$12M inAnnualRentobligation coming due in thenext 2-3 years. • The client’s recentmerger has produced opportunities for consolidation inLosAngeles andSt.Louis. They havemultiple offices in thesemarketswith lowutilization. Further discussions regarding theirworkplace strategywill provide guidanceonhow to optimize the space or consolidate into currentornearbyavailable spaces.

JPMorganChase&Co

Buckhead

YearBuilt

2009

Total Inventory

16,137,250SF 2,291,239SF

BuildingClass

A

TotalAvailableSpace

TotalSize

564,962SF

VacancyRate

14.2%

TotalAvailable Space

YTDTotalAbsorption AverageAskingRent

409,386SF $29.28PSF

67,926SF

OccupancyRate 88% AskingRentalRate $23.50-$24.50PSF NNN OperatingExpenses $11.71PSFper year ParkingRatio 2.0spacesper1000SF MonthlyParkingCost $105 to $135 LEASEOVERVIEW BuildingAddress 3333PiedmontRoad Atlanta,GA 30305 LeasedSpace 80,813SF Commencement 05/01/2011 Expiration 10/31/2023 AnnualRent (FS) $2,345,678 Comments • Property stabilizedwith long term tenants • Prime locationatPiedmontandPeachtree • Primary tenant concern isparking

800 LaSalle Ave | Minneapolis, MN US

UTILIZATIONMETRICS Seats (Capacity)

315 224

Occupancy (FTEs)

Occupancy% (Seats/FTE)

91.9%

NOTES MarketNotes:

SF/FTE

227

As we get later in into they cycle, secondarymarkets tend to getmore attention from investors and Minneapolis is no exception. The Minneapolis office market provides investors with a generally stable vacancy rate, solid yields, and a high concentration of Fortune 500 tenants creating jobs in oneof the strongesteconomies in the nation. Asking rentgrowthhasbeenpositivenearlyevery yearduring this cycle,with the top4& 5Starand recently renovated3Starbuildingswithadowntown locationoffering the latest amenities capturing the greatest proportion of the gains. There is a feeling that competition among landlords to secure tenants has been intensifying and concession packages are on the rise, not only in theMinneapolisCBD, but inwell-located suburban submarkets also.

AnnualCost/FTE

$8,472

PRELIMINARYRECOMMENDATION • ReduceSF • Renegotiate lease to takeadvantageofmarket conditions • Increasedensity

• X • Y • Z

Cushman&Wakefield |SAMPLE

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LOCATIONOVERVIEW SAMPLE MARKETOVERVIEW AssetType/Class: OfficeA SubmarketName: Landlord: MenoraMivtachim Insurance, LTD AnnualSubmarketRent: $28.59 TotalRBA: 1,249,973 MarketName: ClientOccupiedArea: TypicalFloorSize: 25,154 25,154 AnnualMarketRent: AnnualRentGrowth: $24.85

LEASEOVERVIEW LeaseExpiration: LeaseLength (Y): AnnualRent: AnnualRentPerArea: BrokerOpinionofRent: RentOverBOR: RentOverMarket: RentOverSubmarket: Headcount/Seat count :

04/30/2016

MinneapolisCBD

3

1

ClientName | Cushman&Wakefield

$578,542

Minneapolis/StPaul

$23.00 $18.00 ABOVE

0% 8%

PercentLeased: NumberofStories:

VacancyRate:

88%

Inventory:

AT MARKET BELOW 87/106 (82%)

52

198,356,755

LastSaleDate: LastSalePrice:

UnderConstruction: 12MoNetAbsorption:

2013-04-25

2,406,093

$217,396,291

545,205

CostPer Head: AreaPerHead:

YearBuilt:

6,650

1972

289

MARKTOMARKET (BY LEASEEXPIRATION)

Data provided byCushman&WakefieldMarketResearch aswell asCostar. CurrencyandArea are reported inUSD&SF.

Cushman&Wakefield |SAMPLE

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RENTOBLIGATIONBY LEASEEXPIRATION

MARKTOMARKET

Page | 10 SAMPLE

Dashboard Analytics

Cushman&Wakefield |SAMPLE

Cushman&Wakefield |SAMPLE

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Cushman&Wakefield |SAMPLE

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Lease & Market Overview Examples – NN SPECIFIC Cushman & Wakefield has taken the limited information provided in the NN RFP scope to create some example Lease and Market Review reports for a selection of NN's largest sites, which you will find on the following pages. Please note that we did not have access to the leases for these reviews, so they are a modified and simplified version of what would ultimately be custom developed for NN. Nonetheless, these reports demonstrate the convenience of taking the pulse of the entire NN real estate portfolio and condensing to a “page per site” deck.

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