Reimagining Cities-Disrupting the Urban Doom Loop

METHODOLOGY Inventory and Rents We compiled several data sources for this analysis and analyzed that data at the WalkUP level (not at an asset level). GIS shapefiles for each WalkUP were provided to Cushman & Wakefield Research by Places Platform, LLC. Our core analysis real estate data is from Cushman & Wakefield, which included office, life sciences and industrial product data in the form of inventories, vacancy rates and rents. For retail, multifamily, hotel, sports and entertainment, and owner-occupied office products, we sourced data from CoStar. Hotels report Revenue Per Average Rate (RevPAR) and there are no rents for owner-occupied or sports and entertainment spaces. We discuss their valuations in the valuation section. For GSA product, we used the GSA’s direct reporting of square footage and location, ascribing inventory to the cities and WalkUPs based on their geolocation. For educational inventory, we used U.S. Department of Education’s Integrated Postsecondary Education Data System (IPEDS) to identify colleges and universities down to their reported address. From there, we ascribed full-time equivalent student counts. Using research-based assumptions about square footage per student, we

converted student counts to an estimate of inventory. Finally, we also added for-sale data to our dataset from CoreLogic, which reports point based inventory and valuation for for-sale residential properties in our WalkUPs. To develop an all city inventory, we relied on U.S. Census reporting of owner-occupied housing units. We developed an average square footage per unit based on data from PropertyShark. Valuations For valuations, we used the concept of fair market value, where any property’s value reflects not necessarily how it is being used today but what it would be worth on an open market based on fundamentals. This is important for GSA, owner-occupied and education products because, by using information from other product types, we can consider their value not as they stand today but what it would be if it were on the market. For example, GSA space on the open market would reflect the conditions in the prevailing office market independent of GSA’s current occupancy or how government agencies tend to use their space. To create values of our inventory, we created a net operating income (NOI) using rents,

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