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Savills Proposal to NAIC_2022-06-08 Flipbook PDF

Savills Proposal to NAIC_2022-06-08


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Proposal for

Real Estate Broker Services Washington D.C. | June 2022

savills.us

1201 F Street, NW Suite 500 Washington DC 20004 +1 202 624 8518 June 2022 James Woody Chief Financial Officer National Association of Insurance Commissioners 1100 Walnut Street Kansas City, MO 64106 Thank you for inviting Savills to participate in the RFP process for Real Estate Broker Services in Washington D.C. for the National Association of Insurance Commissioners (“NAIC”). Based on our understanding of the engagement and your particular objectives, we have prepared this proposal to demonstrate Savills depth, skill and expertise at delivering workforce and workplace planning, transaction management, financial engineering and project & move management. Our project team is equipped with the resources, experience working with associations and nonprofit organizations and subject matter expertise to advise NAIC on its space needs in the context of cost mitigation, impact of COVID and new market paradigms and optimizing the happiness and productivity of NAIC’s current and future workforce. Steadfast and unbiased advocacy: Our founder set our firm on a course to be 100% dedicated to serving the needs of tenants and occupiers of space. Hundreds of millions of dollars have been invested over more than 60 years in intellectual capital, market research, and financial analytics so that we can deliver superior services and results for complex organizations like NAIC. Importantly, Savills will never be an adversary to NAIC in any negotiation. We are not in the business of serving landlords as their leasing agents, property or asset managers or investment partners. Client service from a committed team: We are fortunate to enjoy many long-standing client relationships because we see project delivery as a very personalized process. We partner with our clients upfront to understand and define drivers and objectives. This strategic planning process sets the foundation for mutual success and alignment in delivery. In addition, our ability to combine real estate transaction expertise with the disciplines of operations research, statistics, local and macroeconomic modeling, and sophisticated demographics analysis supports our mission to achieve superior results for our clients. We believe this strength, and the highly consultative approach we take to problem solving is a unique attribute in our industry, and critical to the value we will bring to NAIC. Our team of senior level professionals is aware of both the sensitive nature of this project and its importance to each of the operating units involved. We are committed to reaching the desired economic and non-economic project outcome in a risk-free manner and with complete transparency of process budget. We pledge to you the full involvement of all proposed senior team members throughout each phase of the engagement, without compromise. We appreciate your consideration of Savills and look forward to hearing from you. On behalf of the Savills team, we are excited about the opportunity to partner with NAIC. Sincerely,

Richard P. Rome Vice Chairman

TABLE OF CONTENTS

01

EXECUTIVE SUMMARY

2

02

FIRM OVERVIEW

4

03

PROJECT TEAM

18

04

SCOPE OF SERVICES

34

SAVILLS.US | 1

01.

EXECUTIVE SUMMARY

We are excited about the possibility of partnering with The National Association of Insurance Commissioners (NAIC) on the organization’s Washington D.C. real estate strategy and are pleased to present our qualifications to help NAIC secure a new welcoming, collaborative, efficient and competitively priced Class A office space for its Executive Office in Washington D.C. YOUR OPPORTUNITY Through Savills comprehensive and time-tested process, NAIC can achieve the following:

Strategy Develop a comprehensive strategy to gain consensus for NAIC’s near- and long-term occupancy needs in Washington D.C. by developing objectives, identifying and evaluating optimal location(s), establishing a space program, analyzing options and producing cash flows, budgets and schedules, with the goal of developing a recommendation for NAIC’s space needs no later than October 31, 2022.

Workplace Implement a dynamic, modern, flexible and hi-tech workspace for NAIC that promotes collaboration, inclusivity and wellness and positions NAIC for the post-pandemic workplace.

Location Locate to a central location near public transportation, preferable on the Red line, to allow for easy access for staff.

Building Locate to a first-class building with stable ownership, professional management, progressive wellness standards and shared amenities (e.g. conference center, fitness center, lounge, rooftop, bike storage, etc.) and a building that accurately reflects the image and mission of NAIC.

Flexibility Negotiate flexibility into NAIC’s new space and transaction documents to manage growth, contraction, fluctuating employee counts and evolving workplace habits.

Economics Take advantage of tenant-friendly market conditions and record high concessions to achieve a lowcost, high-value solution with a workplace to suit NAIC’s specific needs.

Process Orchestrate a highly competitive process(es) to identify / create, analyze, and negotiate with all viable real estate options and maximize NAIC’s leverage. 2 | PROPOSAL FOR REAL ESTATE BROKER SERVICES IN WASHINGTON D.C.

OUR APPROACH We begin by assessing your unique financial, operational, and cultural needs, then work with you to understand the market, and the specific advantages available to your organization. Our goal is to help you identify and deliver solutions that exceed expectations for you and your people. Combining our world-class technology, the breadth of our integrated services, along with our in-depth market knowledge, we will produce data-driven insights and creative solutions tailored for you, to create an environment for your Washington D.C. Executive Office that fit the organization’s mission and are guided by your purpose. As your partner, we will put your needs first. We will create effective strategies that build confidence and consensus among decision makers, lower costs, power positive change in your organization, and secure space that delivers lasting security and stability—helping you focus on advancing your mission.

WHY SAVILLS 1  We Have No Conflicts We only represent occupiers of space. All our time, effort and resources are spent helping organizations like NAIC solve their occupancy challenges. Quite simply, it is all we do. We do not represent institutional landlords in Washington D.C., or anywhere else in the United States. We are not beholden to income derived from existing or potential landlord relationships and therefore are not influenced by these relationships.

2  Nonprofit & Association Experience We understand nonprofits and associations. We have an extensive nonprofit & association resume and understand the unique priorities and challenges of such organizations. In the last decade, we have transacted over 19M SF of real estate in this industry, primarily in Washington D.C., Chicago and New York.

3  Our Proactive, Consultative Approach Solely focused on occupiers, we concentrate our efforts on evaluating complex occupancy issues to proactively develop solutions aligned with achieving NAIC’s goals and objectives. With Savills, there will be no one-size-fits-all approach. All our actions will be aligned to develop the optimal solution for NAIC’s Washington D.C. occupancy requirement.

4  Middle-Market Specialists The multi-disciplined project team is led by senior-level advisors with a sophisticated understanding of the nonprofit industry and relevant real estate best practices. They are experienced in guiding similar organizations through a consensus-building process, from the initial

strategic planning phase through move-in and beyond. With a specific focus on middle-market occupiers—more than 75% of the team’s clients are organizations with 20 to 100 employees—the team will leverage this extensive and specialized experience to optimize the long-term value of NAIC’s real estate decisions.

5  Suite of In-house Services The project team is supported by a team of subject matter experts in the fields of strategic real estate planning, financial consulting, workplace strategy, space planning, change management, project management, market research, capital markets and ESG strategies, all of the disciplines needed to achieve NAIC’s objectives.

6  Data Access Our team has exclusive access to robust lease comp data and pricing analytics through our exclusive partnership with the largest transactional lease comp database platform in the industry. As a result, Savills has the unique ability to keep our clients ahead of the market, to maximize top-line value creation, and to leverage the best available data to support the preferred scenarios and contractual structures.

7  Commitment to Diversity & Inclusion At the corporate level, Savills is fully committed to diversity & inclusion. This commitment is emphasized locally by the composition of the Project Team and will be a key factor as other members of the external team are engaged.

SAVILLS.US | 3

02. FIRM OVERVIEW Provide a high-level overview of your firm including years in business, approximate number of employees, management team, and ownership structure.

At Savills, we help organizations find the solutions that ensure employee success. Sharply skilled and fiercely dedicated, our integrated teams of consultants and brokers are experts in better real estate. In North America, Savills is committed to occupier-focused representation. Born of the heritage of our legacy firm Studley, we know that purposeful, passionate occupier representation is much easier when your firm and all its resources are focused squarely on the same objective: representing occupiers.

WHO WE ARE Savills plc. is a corporation, headquartered in London, United Kingdom. In North America, the company operates as Savills Inc., headquartered in New York City. Founded in the UK in 1855, Savills is one of the world’s leading real estate service providers. For over 160 years, we’ve offered outstanding property, specialist services and expert advice to clients, helping them with their property decisions and ambitions. Our experience and expertise spans the globe, with more than 600 offices across the Americas, Europe, Asia Pacific, Africa and the Middle East. Our scale gives us wide-ranging sector and local market knowledge. Supported by high-quality market research and in-depth analysis, we take pride in providing best-in-class advice as we help businesses and institutions make better real estate decisions. 4 | PROPOSAL FOR REAL ESTATE BROKER SERVICES IN WASHINGTON D.C.

Our global team is 39,000+ strong, and committed to maintaining a nimble, responsive approach to service with our unique, flat management structure. With an entrepreneurial spirit and innovative environment, our top professionals continually seek out fresh opportunities that help our clients solve their multi-faceted real estate issues.

Savills at A Glance Savills is the leading commercial real estate services firm specializing in tenant representation. Founded in the US in 1954, the firm pioneered the conflict-free business model of representing tenants in their commercial real estate transactions.

Deep Global Experience Since

1855 #1

UK-Listed on the London Stock Exchange 2021 Annual Revenue of

$2.97B

Tenant Specialists

200+

900+

Full suite of integrated services

Advancing Diversity & Inclusion

Commercial Offices

n Tenant Representation n Capital Markets n Consulting n Project Management n Workforce and Incentives Strategy n  Workplace Strategy and Occupant Experience n Portfolio Solutions n Client Technology Solutions

43

Employees in North America

#1

as of 9/2020

Savills ranks #1 in our industry as a leader for gender diversity in the boardroom, with 37% of the positions on the Global Board of Directors held by women

4

Employee Resource Groups (ERGs)

Offices in North America

2

National Partnerships

First CRE firm to join PwC’s CEO Action for Diversity & Inclusion in 2018; working with Parker Dewey to offer micro-internships to diverse candidates

Black Excellence United (BeU), Women’s Initiatives Network (WIN), Asian Pacific Network (APN) and LGBTQ

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SAVILLS PLC GROUP CORPORATE STRUCTURE

Chris Lee Group Legal Director & Company Secretary

Mark Ridley Group CEO

Simon Shaw Group CFO

SAVILLS NORTH AMERICA CORPORATE EXECUTIVE TEAM

Mitchell Rudin Chairman & Chief Executive Officer

David Lipson President

SAVILLS WASHINGTON D.C. REGIONAL LEADERSHIP

Thomas M. Fulcher Vice Chairman Mid-Atlantic Region Lead

Nicole Miller Sr. Managing Director, Co-Regional Manager

Benjamin Plaisted Vice Chairman, Co-Regional Manager

Julie Rayfield Vice Chairman, Co-Regional Manager

Gary Stein Vice Chairman, Co-Regional Manager

William Quinby Vice Chairman, Co-Regional Manager, Suburban Washington D.C.

6 | PROPOSAL FOR REAL ESTATE BROKER SERVICES IN WASHINGTON D.C.

Summary of your firm – mission/vision, tenant/landlord or both, negotiating style, competitive advantages, in-house/partner architectural services.

THE SAVILLS OPERATING PHILOSOPHY Savills only represents tenants. Savills pioneered the conflict-free business model of occupier focused representation in commercial real estate. We were founded in 1954 on the unique idea that tenants deserve to be represented as professionally, purposefully and passionately as landlords. By maintaining this purity of purpose, we have become a force for occupier-focused innovation within the industry. We thrive on more complex engagements that require the most qualified people and benefit our clients in a material way. We systematically eliminate hidden landlord profit centers, creating a transparent transaction in which both parties understand costs and risk allocation — down to every last dollar and on every provision. We consistently celebrate and recognize our people who develop new techniques to protect and advantage the tenant. We are committed to eliminating “hand-offs” in execution; the same people who present to clients also perform the work. The outcome is transparency, purity of representation and superior performance for our clients, and they agree:

Jennifer Ahearn Chief Operating Officer American Association of Colleges of Nursing

“Savills was like an extension of our team— not just another firm trying to close another deal. They were always present and always followed through. I truly felt supported and that was most important to me. Savills’ whole model resonates with us—the tenant gets priority. You don’t want a firm that represents you and the other side. There feels like an immediate conflict there.”

COMPETITIVE ADVANTAGES

1  We Have No Conflicts Savills is different from other commercial real estate service firms. Since our founding, our North American operations have focused exclusively on servicing occupier clients. We have built and continue to optimize our entire platform expressly to support the tenant side of any real estate transaction. Most of our competitors encounter conflicts of interest on a regular basis, which can result in increased risk and reduced outcomes for NAIC. For your Washington D.C. lease requirement, many of the potential relocation options are represented by our competition, which can result in a less than desired rental rate or concessions package, as those companies must also look out for the needs of their owner client (the landlord). With Savills, you can rest easy knowing that we will only have your best interests at heart in all negotiations.

2  Nonprofit & Association Experience We understand nonprofits and associations. We have an extensive nonprofit & association resume and understand the unique priorities and challenges of such organizations. In the last decade, we have transacted over 19M SF of real estate in this industry, primarily in Washington D.C., Chicago and New York.

8 | PROPOSAL FOR REAL ESTATE BROKER SERVICES IN WASHINGTON D.C.

3  Our Proactive, Consultative Approach As the commercial real estate firm that invented tenant advocacy, and being solely focused on occupiers, we concentrate our efforts on evaluating complex occupancy issues to proactively develop solutions aligned with achieving NAIC’s goals and objectives. With Savills, there will be no one-size-fitsall approach. All our actions will be aligned to develop the optimal solution for NAIC’s Washington D.C. occupancy requirement.

4  Middle-Market Specialists The multi-disciplined project team is led by senior-level advisors with a sophisticated understanding of the nonprofit industry and relevant real estate best practices. They are experienced in guiding similar organizations through a consensus-building process, from the initial strategic planning phase through move-in and beyond. With a specific focus on middle-market occupiers—more than 75% of the team’s clients are organizations with 20 to 100 employees—the team will leverage this extensive and specialized experience to optimize the longterm value of NAIC’s real estate decisions.

5  Suite of In-house Services Our entire corporate platform and our suite of in-house services—such as financial consulting, space planning, workplace strategy, change management, project management, market research, capital markets and ESG strategies—are structured around the needs of occupiers. For example, NAIC will not need services of a third-party architect until the course of action (e.g., renewing in place or relocating to a new property) has been determined. This gives NAIC flexibility to choose the best qualified architect based on the chosen project. It also safeguards against the possibility of sensitive information being released to the market.

6  Data Access Our team has exclusive access to robust lease comp data and pricing analytics through our exclusive partnership with the largest transactional lease comp database platform in the industry. As a result, Savills has the unique ability to keep our clients ahead of the market, to maximize top-line value creation, and to leverage the best available data to support the preferred scenarios and contractual structures.

7  Commitment to Diversity & Inclusion At the corporate level, Savills is fully committed to diversity & inclusion. This commitment is emphasized locally by the composition of the Project Team and will be a key factor as other members of the external team are engaged.

SAVILLS.US | 9

NEGOTIATING STYLE | BEYOND THE TRANSACTION Creating outstanding working environments around the globe, regardless of location, property type or use, is a major challenge for every business. Our advisory approach is about far more than just managing the transaction. Identifying the right property in the best location is key; negotiating a deal to meet the business needs follows directly behind. Savills works on the principle that the better we build our relationship with NAIC, the more value we can add. By establishing a sophisticated understanding of your business and cross-referencing that against our knowledge of the real estate markets, we can advise NAIC on achieving a long-term competitive position and provide NAIC great real estate solutions to empower your key assets—your people and your operations—to achieve their full potential. We make it our priority to understand NAIC’s business applicable to real estate decisions. We listen and learn about your operations, human resources, governance, culture and corporate social responsibility goals, and we consider how these factors will impact the way NAIC occupies and uses real estate. Our experience working with other nonprofit clients means we understand how NAIC’s operational and occupational assets sit within the competitive landscape. Our approach enables us to integrate with NAIC’s stakeholders and custom-tailor solutions to meet your specific business, operational and personnel objectives. We act as an extension of your business to ensure those objectives are met. With this in mind, the following priorities and focal points are common to both NAIC and Savills. These will be key to ensuring a successful partnership: •

The Human Element – NAIC’s internal and external stakeholders are the top priority in decision making.



Health & Safety – Wellbeing is of paramount importance with zero tolerance for exceptions.



Cost Management – We achieve savings and cost reduction by negotiation and smart decision making.



Zero Waste – Time and energy are finite resources. We conserve them by avoiding mistakes.



Timeliness – We make it a goal to exceed deadlines.



Risk Management – We take the time to identify, understand and mitigate against risks.



Business Support – We are stronger together; meeting and exceeding goals is a collective effort.



Integrity – We uphold fairness and transparency in all interactions.



Excellence – We aim for the highest standards possible in the way we work and in the quality of our results.



Unity – We build strong, mutually beneficial relationships with NAIC colleagues, partners and customers all over the world.



Responsibility – We are always responsible in our dealings with NAIC, and communities and places where we do work.

10 | PROPOSAL FOR REAL ESTATE BROKER SERVICES IN WASHINGTON D.C.

IN-HOUSE/PARTNER ARCHITECTURAL SERVICES Savills can perform all workplace strategy, programming, space planning, furniture consultation, base building due diligence and capital budgeting services that NAIC requires with in-house resources. We choose not to partner with an architectural firm before we know you, and the trajectory of your project. We have many relationships with architects in the region and will work with you to select the right one for your project. Our process can seamlessly fold their expertise into our timeline, while giving you the benefit of choice. The Savills team is comprised of in-house experts that will allow NAIC to understand the entirety of its real estate decision up to contract execution. Specific to NAIC’s office space, the Savills team consists of leaders in the following disciplines: Workplace Strategy Johanna Rodriguez and Laurie Baron will lead the workplace strategy process, including Discovery Phase: Research and Data Gathering, Define Phase: Vision, Analysis and Solution Development, and Delivery Phase: Design Implementation, Monitor and Refine. The core deliverable will be a custom-built program that reflects the information gathered from all engagements. This will consider desired remote work levels and organizational space usage and goals. Space Planning & Furniture Laurie Baron will lead the space planning portion of the process. Utilizing CAD software, Laurie will develop space plans at every alternative under consideration. Importantly, Laurie will create multiple options for each scenario, so NAIC will be able to undertake an iterative space planning process early in its overall real estate process. Project Management Ann Linstrom will lead the team providing pre-lease review for building infrastructure, budget development, onboarding all required third-party vendors (architect, contractors, subcontractors), managing the bid process, managing the construction process, contract administration and move management. With these professionals involved on our team, NAIC will not require bringing on an architect or contractor until you have made a real estate decision.

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Your firm’s expertise in the Washington D.C. (DC) and surrounding office real estate rental market, including deals closed in each of the last five years and open assignments for similar sized clients.

RELEVANT EXPERIENCE

Savills has completed over 540 transactions on behalf of tenants in Washington D.C. totaling 15M SF in the past five years. In the Capitol Hill submarket, Savills completed 57 transactions totaling 6.9M SF in the same timeframe. The team’s experience supporting tenants throughout Washington D.C. will provide NAIC with unparalleled market expertise, an intelligent negotiation style, and a passion to conduct more than just a real estate transaction, but a real estate strategy which enhances NAIC’s position within Washington D.C. 12 | PROPOSAL FOR REAL ESTATE BROKER SERVICES IN WASHINGTON D.C.

Select experience with similar-sized clients includes:

National Governors Association 400-444 N Capitol Street NW Washington D.C. 22,950 RSF Renewal

Cornerstone Government Affairs 800 Maine Ave SW Washington D.C. 14,800 RSF New lease

District of Columbia Department of General Services 400 Virginia Ave SW Washington D.C. 13,000 RSF New Lease

Locke Lord LLP 701 8th Street NW Washington D.C. 13,000 RSF Restructure

Pyxera Global 99 M Street, SE Washington D.C. 12,600 RSF New Lease

Covington & Burling 1001 G Street, NW Washington D.C. 12,200 RSF New Lease

United Brotherhood of Carpenters 101 Constitution Ave NW Washington D.C. 10,900 RSF Renewal

The Catholic Health Association of the United States 1625 Eye Street NW Washington D.C. 10,700 RSF New Lease

KaiserDillon PLLC 1099 14th Street NW Washington D.C. 10,300 RSF New Lease

The Hershey Company 1120 G Street, NW Washington D.C. 2,000 RSF Renewal

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14 | PROPOSAL FOR REAL ESTATE BROKER SERVICES IN WASHINGTON D.C.

Full disclosure of any potential conflicts of interest as they relate to any specific transactions. The Broker should include a statement in its proposal describing any services performed for landlords and building owners.

CONFLICTS (OR LACK THEREOF) The team has no conflicts of interest that would impact our performance for NAIC.

Savills pioneered the occupier-focused model. Unlike our competitors, who encounter conflicts of interest on a regular basis as agents or managers for landlords, we have zero landlord or ownership conflicts of interest anywhere in North America, including in Washington D.C.

In addition, no proposed team member is currently representing another tenant client with similar requirements to NAIC or one of the firm’s competitors. Best-in-class representation requires the unfettered ability to represent the client’s interests. Having pioneered the occupierfocused model, Savills has no landlord or ownership conflicts of interest anywhere in North America because our professionals do not represent landlords, investors or developers. This is our commitment to our clients. Since our founding over 150 years ago, Savills has committed to ensuring that our business is

conducted ethically, honestly and to the highest standards. We are extremely sensitive to the confidentiality requirements of our clients, and we avoid conflicts with clear guidelines and programs, which are governed by our Global Conflicts of Interest Policy.

Conflict resolution process In the unlikely event that the proposed team acts on behalf of multiple tenants interested in the same space or as an agent for two tenants that are negotiating in the same building at the same time with conflicting goals, the team will follow Savills’ highly effective and transparent process to resolve any such conflicts swiftly.

First, the project team will immediately notify NAIC of the conflict. The team will then engage NAIC to outline the situation and determine the best way to eliminate the conflict. Savills may not represent the other party, involve a third party for representation, or integrate a new, conflict-free Savills team into the project, among other solutions. The most important thing we can do is offer transparency early and bring NAIC solutions that will not impact the quality of the result or timing of the project.

In the end, what matters is trust. We have spent our entire careers putting our clients first.

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Uptown Submarket

Listing Broker:

Address: 4400 Jenifer St NE Size: 13,052 SF TI: $30.00 Abatement: 6 Months

West End Submarket Address: 1250 24th St NW Size: 16,000 SF TI: $120.00 Abatement: 22 Months

Property Manager: Asset Manager:

Zuckerman Gravely Mgmt Zuckerman Gravely Mgmt

Listing Broker: Property Manager: Asset Manager:

CBD Submarket Address: 1801 Penn. Ave NW Size: 20,000 SF TI: $150.00 Abatement: 24 Months

16 | PROPOSAL FOR REAL ESTATE BROKER SERVICES IN WASHINGTON D.C.

Listing Broker: Property Manager: Asset Manager:

DIRECT & INDIRECT CONFLICTS

East End Submarket

Listing Broker:

Address: 655 New York Ave NW Property Manager: Size: 15,000 SF Asset Manager: TI: $100.00 Abatement: 10 Months

NoMa Submarket

Listing Broker:

Address: 750 1st St NE Size: 13,052 SF TI: $120.00 Abatement: 22 Months

Capitol Hill Submarket

Property Manager: Asset Manager:

Listing Broker:

Address: 250 Mass. Ave NW Property Manager: Size: 21,695 SF Asset Manager: TI: $170.00 Abatement: N/A

BallPark Submarket Address: 80 M St SE Size: 14,712 SF TI: N/A Abatement: N/A

Listing Broker: Property Manager: Asset Manager:

SAVILLS.US | 17

03.

PROJECT TEAM

Organizational chart and bios of proposed project team, including their role and level of involvement in the project, and their specific experience and expertise regarding commercial real estate.

For NAIC’s Washington D.C. requirement, Savills has assembled a team of experts who have extensive experience supporting clients with similar real estate needs. All members of our proposed team will operate as part of an integrated unit—providing expertise, information and value from the project’s inception through its completion. One of the reasons our clients hire us repeatedly is because we dedicate the time to understand their goals and objectives, ensuring the real estate evaluation process and resulting occupancy solution propels the organization in front of its competition. We ultimately view our relationship with you as a partnership, and endeavor to integrate with your organization so that the Savills team is an integral part of your business and real estate operations. We commit to fostering a transparent and open culture where success is shared, and feedback is both valued and acted upon. We are always transparent and honest regarding our capabilities; we will only recommend a course of action where and when we know we are the best solution for NAIC. We have found that placing these behaviors at the forefront of our dealings with every client allows us to build lasting, meaningful partnerships. Our proposed project team structure can be found in the below organizational chart. Biographies for the team members, outlining their experience and expertise, as well as their role and level of involvement, are included on the following pages.

18 | PROPOSAL FOR REAL ESTATE BROKER SERVICES IN WASHINGTON D.C.

Proposed NAIC Project Team CORE NAIC PROJECT TEAM Richard Rome SPOC, Project Lead

Mordecai Scott Strategy & Negotiations

Alexandra deVilliers Transaction Management

SUBJECT MATTER EXPERTS Brian Day Financial Consulting

Johanna Rodriguez Workplace Strategy

Kelly Creighton Change Management

Laurie Baron Space Planning

Kiki Ferguson Workplace Strategy Support

Ann Linstrom Construction/ Project Management

Arty Maharajh Market Research

Lindsay Stroud Structured Finance

Hyon Rah ESG Strategies

SAVILLS.US | 19

20 | PROPOSAL FOR REAL ESTATE BROKER SERVICES IN WASHINGTON D.C.

SAVILLS | 20

PROJECT ROLE Project Lead LEVEL OF INVOLVEMENT IN THE PROJECT Responsible for delivery of all services. Lead for strategic and transactional services.

Richard P. Rome Vice Chairman E: [email protected] T: +1 202 624 8518

Specialties • Legal • Nonprofits & Associations • TAMI • Professional Associations

Notable Experience Legal Hogan Lovells 1M+ | Multiple Transactions Legal Eversheds Sutherland 150K | New Lease Non-Profits & Associations American Association for the Advancement of Science 200K | Build-to-Suit TAMI C-SPAN 100K | Multiple Transactions

PROFESSIONAL EXPERTISE As vice chairman of Savills Washington, DC office, Richard Rome offers more than 40 years of experience in real estate – locally, nationally and internationally. Rick exclusively represents nonprofits, law firms, associations and corporations in evaluating office space requirements and implementing strategies to achieve their objectives. Since representing clients from his base in Washington in 1982, Rick’s clients have included C-SPAN, the American Association for the Advancement of Science, Hogan Lovells (formerly Hogan & Hartson), Eversheds Sutherland (formerly Sutherland Asbill & Brennan), the DC Bar Association, the Washington Lawyers’ Committee for Civil Rights and Urban Affairs and the National Center and Caucus on Black Aging. Notable assignments include a 200,000-SF new headquarters for the American Association for the Advancement of Science and two long-term leases for Hogan Lovells’ headquarters totaling 500,000 SF. Rick has recently represented Hogan Lovells in securing space in Boston, Miami, San Francisco, McLean, Baltimore, Houston and Philadelphia. A typical office for Hogan Lovells is approximately 40,000 SF. AWARDS, ACHIEVEMENTS AND ACTIVITIES Rick currently serves as a founding co-chair of the board for Partners for Kigezi (Uganda) Orphans Home Inc., supporting a primary day school and secondary school scholarships for 225 students. He also serves on the board of Community Connections (a mental health clinic in DC) Real Estate Foundation and on the corporate advisory board of the Washington Lawyers’ Committee for Civil Rights and Urban Affairs. In June 2015, he was presented with the ‘Francis P. Cotter/Eliot S. Hall Corporate Service Award’ by the Washington Lawyers’ Committee for Civil Rights and Urban Affairs. Professionally, in 1994, he earned the title ‘Distinguished Sales Associate of the Year’ from the Washington Association of Realtors. EDUCATION Wesleyan University B.A., Government

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PROJECT ROLE Strategy & Negotiations LEVEL OF INVOLVEMENT IN THE PROJECT Strategic development. Lead negotiations. Site tours.

Mordecai Scott Managing Director E: [email protected] T: + 1 202.629.5004

Specialties • Nonprofits & Associations • Professional Services • Education • Legal

Notable Experience Technology Expedia Group 27 U.S. Locations | Lease Administration, Lease Restructure, Sublease Legal Hogan Lovells 500K SF | Lease Restructure, Sublease Government Relations Cornerstone Government Affairs 37K SF | New Lease Legal Michael Best and Friedrich LLP 35K SF | New Lease and Sublease

PROFESSIONAL EXPERTISE Mordecai Scott is a managing director in the Tenant Representation group at Savills, where he advises occupiers on strategic real estate solutions for optimized business performance. Based in Washington, DC, Mordecai serves end users across multiple industries and sectors. His focus is on ensuring that his clients make informed real estate decisions that maximize profits and accommodate employees and other stakeholders. He joined Savills in 2014 after three years as a nonprofit professional at Communities in Schools in Arlington, Va. There, Mordecai began developing technical skills in project management, strategic planning and analysis, and reporting. AWARDS, ACHIEVEMENTS AND ACTIVITIES Mordecai is an active member in the firm’s partnership with JDRF, a global leader in type 1 diabetes research and advocacy. He serves on the advisory board for Outward Bound of Greater Washington, the Development Committee of Northern Virginia Community College’s Foundation Board, as well as the Governance Committee of Communities in Schools of Northern Virginia. In addition to being the founding member of the Communities In Schools National Alumni Network, Mordecai has written and presented more than 50 national presentations and webinars on college persistence, program development, and business and site standards. He earned the National Jefferson GlobeChanger award for public service in 2011. At Davidson College, he was a presidential scholar. Most recently Mordecai served as a guest speaker for Communities In Schools of Charlotte Mecklenburg’s 2022 “Difference Maker’s” Trip in Washington D.C. EDUCATION Davidson College B.A., Sociology

Nonprofits & Associations American Association of Colleges of Nursing 14K SF | New Lease Manufacturing The Hershey Company 2K SF | Lease Restructure

22 | PROPOSAL FOR REAL ESTATE BROKER SERVICES IN WASHINGTON D.C.

PROJECT ROLE Transaction Management LEVEL OF INVOLVEMENT IN THE PROJECT Transaction schedule/key milestone management. Site tours. Client communication protocols.

Alexandra deVilliers

Corporate Managing Director E: [email protected] T: + 1 202 309 5586

Specialties • Legal • Nonprofits and Associations • TAMI • Professional Services

Notable Experience

PROFESSIONAL EXPERTISE Alexandra deVilliers is a corporate managing director at Savills Washington, DC office in the heart of the nation’s capital. Focused on representing tenants of commercial real estate, Alex advises law firms, nonprofit associations and various corporations throughout the Washington DC metropolitan region. In order to assist her clients in making strategic and leveraged real estate decisions, Alex integrates financial data and qualitative information with executable long-term plans. She also utilizes in-depth market research and more than 10 years of insight to give her clients exclusive, conflict-free representation and negotiation for their most important real estate decisions. Alex’s notable transactions include an 80,000 square-foot lease extension for C-SPAN and two long-term leases for Hogan Lovells’ headquarters totaling 500,000 square feet. Alex also represented Hogan Lovells in securing space in Boston, Miami, San Francisco, McLean, Baltimore, Houston and Philadelphia. A typical office for Hogan Lovells is approximately 40,000 square feet. Prior to joining the firm in 2008, Alex was a leasing associate for US Equities Asset Management in Chicago where she was a part of the Willis Tower leasing team.

Legal Eversheds Sutherland 85K SF | New Lease

AWARDS, ACHIEVEMENTS AND ACTIVITIES Alex is active in her community as a member of the board for the Darien YMCA and Holly Pond School. She is also an active fundraiser for the OPUS for Person-to- Person and Washington Lawyers’ Committee for Civil Rights and Urban Affairs. In 2015, Alex was a 2014 CoStar ‘Power Broker’ and Savills ‘Million Dollar Producer’.

TAMI C-SPAN 100K SF | Multiple Transactions

EDUCATION Marquette University B.S., Commercial Real Estate and Finance

Legal Hogan Lovells 1M+ | Multiple Transactions

Nonprofits and Associations CentroNia 75K SF | Building Disposition

SAVILLS.US | 23

PROJECT ROLE Financial Consulting LEVEL OF INVOLVEMENT IN THE PROJECT Financial engineeing and transaction structuring. Comparative financial analyses. Comparative matrices.

Brian Day

Managing Director E: [email protected] T: +1 404 467 0708

Specialties • Consulting Solutions • Portfolio Solutions • Tenant Representation

PROFESSIONAL EXPERTISE Brian Day is a managing director in Savills Integrated Consulting Strategies (ICS) group based in the Atlanta office, where he works with a diverse team of commercial real estate professionals helping companies optimize their leased and owned space through portfolio analysis, financial analysis, transaction management, and workplace strategy. He brings 13 years of experience in real estate leasing, development, acquisitions, financial analysis and market research. Brian joined Savills in 2020 from JPMorgan Chase, where he was a vice president and market director of real estate focused on the management and optimization of the firm’s retail real estate portfolio in Texas, Louisiana and Oklahoma. Prior to JP Morgan Chase, Brian worked as a portfolio manager, managing commercial real estate debt for Guggenheim Partners and as an associate at C-III Capital Partners, where he managed $1.4+ billion of investment equity in common and preferred equity, non-performing loans, mezzanine debt, b-pieces, whole loans and vintage and new-issue CMBS through joint ventures and limited partnership funds. Brian also worked at CBRE and Ackerman & Co. in Atlanta. AWARDS, ACHIEVEMENTS AND ACTIVITIES Brian is an active member of the Columbia Club of Atlanta and the Georgia State Alumni Association. In his spare time, he mentors students and young professionals in the commercial real estate field. EDUCATION Georgia State University B.B.A., Real Estate Columbia University M.S., Real Estate Development

24 | PROPOSAL FOR REAL ESTATE BROKER SERVICES IN WASHINGTON D.C.

PROJECT ROLE Workplace Strategy LEVEL OF INVOLVEMENT IN THE PROJECT Discover, Define & Delivery phases of Workplace Strategy .

Johanna Rodriguez Senior Managing Director, Occupant Experience E: [email protected] T: + 1 202 629 5002 Specialties • Government • TAMI • Financial Services • Legal

Notable Experience Industry Red Hat, Inc. 1.6M SF | Workplace Strategy Government U.S. Department of Defense – Pentagon 5M SF | Occupancy Analysis Industry Peace Corps 150K SF | Workplace Strategy Financial Royal Bank of Canada 776K SF | Occupant Experience Insurance The Allstate Corporation Workplace Strategy

PROFESSIONAL EXPERTISE Johanna Rodriguez joined Savills as a senior managing director focused on workplace strategy. Her goal is to deliver creative, innovative spatial solutions that benefit the human experience for employees within their work environment. Acknowledging how the human element impacts business success, Johanna’s main goal is to maximize employee engagement and help foster a culture that encourages people connect to their work, through space. Her understanding approach allows her to explore her clients’ short- and long-term business objectives in order to develop office concepts them to thrive in the present and future. Whether these cultural and workflow improvements come from re-aligning space allocation or end user involvement, Johanna provides a thorough analysis and set of recommendations for what a client has, what they need and what is most important. This is applicable to a range of real estate transitions including relocations, expansions, project delivery process mapping, buildto-suits, long-range strategic planning, occupancy planning, programming and portfolio strategies, with the process tailored to the need. Prior to joining Savills in 2018, Johanna worked at Gensler for seven years in the consulting studio helping clients with workplace, occupancy strategy and strategic planning. Most recently, she helped Red Hat create a global platform to roll out their new workplace strategy in over 1.6 million square feet. Her ability to translate and standardize their company culture and goals across the world was a challenge she comfortably accepted. During her career, Johanna has worked on the portfolios of major governmental departments, influential technology companies and financial institutions around the world. A greater human experience brings with it a more positive brand, better working environment, in which people want to work and ultimately a more successful business. As director of the firm’s Eastern U.S. occupant experience, Johanna strives to accomplish all of this with every client she engages. EDUCATION University of Colorado Boulder B.B.A. The Catholic University of America Master of Architecture

SAVILLS.US | 25

PROJECT ROLE Change Management LEVEL OF INVOLVEMENT IN THE PROJECT Change communications.

Kelly Creighton Managing Director E: [email protected] T: +1 215 749 2668 Specialties • Project Management • Organizational Communications • Workplace Strategy • Change Management

Notable Experience Tech/Media Comcast NBCUniversal 1.5M SF | Change Management

PROFESSIONAL EXPERTISE Kelly Creighton is a managing director for Savills, based in the Philadelphia office, who focuses on workplace strategy. She brings a decade of experience in managing programs and teams large and small to help clients assess their current space and plan for the future in order to best manifest their organizational culture and goals within their built environment. Kelly’s change management and communications management guidance helps disseminate information to key stakeholders as concisely and promptly as possible. Her ability to anticipate and solve issues before they arise saves clients innumerable headaches, and her attention to detail ensures that every variable is accounted for. Kelly’s aptitude for clear and effective communications has made her indispensable to clients and colleagues alike. She is adept in translating even the most abstract requests and manifesting information into clear, tangible materials that help align stakeholders and drive decision making. Before joining Savills in 2020, Kelly was a senior project manager at Macro Consultants for four years, where she provided a “white glove” service to clients, focusing on change management, operations, communications, amenity spaces, wellness, executive communications, from both planning and implementation perspective. Among Kelly’s accomplishments was a project management implementation for the 1.5 million-square-foot Comcast Technology Center in Philadelphia. Prior to her tenure at Macro, Kelly worked for Philly Foodworks, where she developed and implemented systems to increase operational efficiency and measured analytics for its consumer spending. AWARDS, ACHIEVEMENTS AND ACTIVITIES Kelly is a certified yoga teacher who is trained in permaculture design (land-based design system, aligned with nature) and medicinal herbal studies. With this expertise, she has planned and implemented corporate wellness programs, including food service, fitness, health clinics and virtual health. EDUCATION Temple University B.B.A., Strategic Organizational Communications

26 | PROPOSAL FOR REAL ESTATE BROKER SERVICES IN WASHINGTON D.C.

PROJECT ROLE Space Planning LEVEL OF INVOLVEMENT IN THE PROJECT Discover, Define & Delivery phases of Workplace Strategy. Space Planning & Furniture Consultation.

Laurie Baron

Associate Director, Workplace Strategy E: [email protected] T: + 1 202 540 5504 Specialties • Workplace • Occupancy Planning • Office Furniture Design & Specification • Project Management

Notable Experience Associations Alzheimer’s Association 10,000+ SF | Account mgmt, Office furniture design & specification Associations The Society of American Military Engineers (SAME) 7,000 SF | Account mgmt, Office furniture design & specification

PROFESSIONAL EXPERTISE Laurie, an experienced Corporate Real Estate professional with over 23 years of industry experience, has become highly proficient in Space planning, Strategic occupancy planning, Commercial office furniture design/specification/sales and Workplace Strategy. Laurie’s ability to provide a consultative approach to each project has garnered respect within the DC Metro area and beyond. Her sales & business development experience allows her to take the lead in & partner with other team members in “pitch” meetings in order to strengthen the firm’s business development efforts. Over the years, Laurie has co-created flexible, functional & thoughtful spaces which enable organizations to work more effectively, invest in their workspaces and work-from-anywhere technologies to improve talent attraction, retention, and productivity and further the client’s business mission. Laurie works with clients to understand their culture, technology, work methodology and business goals and then executes workplace observation or measurement studies, elicits data and other feedback from clients to make appropriate recommendations. Laurie manages the roll-out/implementation of Planning, Change Management and Communication strategies. AWARDS, ACHIEVEMENTS & ACTIVITIES Associate Member, IFMA, Capital Chapter EDUCATION East Carolina University (Greenville, NC) B.S., Interior Design

Tech Google 2M SF | Strategic Occupancy Planning Professional Services ID.Me 100,000 SF | Account mgmt, Office furniture design & specification Education University of Maryland, College Park Jones Hill House 90,000 SF | Account mgmt, Office furniture design & specification Government Pentagon Renovation Program 1.5M SF | Contract office furniture design & specification

SAVILLS.US | 27

PROJECT ROLE Workplace Strategy Support LEVEL OF INVOLVEMENT IN THE PROJECT Discover, Define & Delivery phases of Workplace Strategy

Keanee Ferguson

Associate Workplace Strategiste E: [email protected] T: + 1 202 624 8535

Specialties • Workplace • Data Analysis • Research • Project Management • Professional Services

Notable Experience Nonprofits & Associations ICBA 38,000 SF | Workplace Strategy Legal Caplin & Drysdale 40,500 SF | Return to Office Planning, Workplace Strategy

PROFESSIONAL EXPERTISE As an Associate Workplace Strategist, Keanee (“Kiki”) assists and works on multiple client engagements concurrently with oversight from senior leaders. She coordinates and manages project support work such as meeting notes, scheduling, project tracking, reports, presentations, and floor plan analysis. She also promotes thought leadership on workplace/experience strategy, real estate/capital planning, culture transformation and change management. With a passion for finding order in the chaos, Kiki collaborates with clients to understand their needs, the issues they face, and the mindsets and behaviors that will support their transformative vision. She was instrumental in working with the Return to Office planning team for the Savills DC and Virginia offices. From the onset of a project, Kiki partners with teams to effectively solve unstructured problems to deliver on design strategy, experience design, organizational culture, and change enablement. Her strong abilities with time management, people skills, and a self-starter drive help projects maintain effective communication across multiple team members. AWARDS, ACHIEVEMENTS AND ACTIVITIES Kiki is a member of Savills Black Excellence United organization. EDUCATION Howard University (Washington, DC) B.S., Biology

Professional Services Savills DC and Virginia Offices Return to Office Planning Education EAB 111,000 SF | Workplace Strategy, Interiors Health and Fitness MADabolic Alexandria and Dupont 9,000 SF | Project Management Coordina-tion

28 | PROPOSAL FOR REAL ESTATE BROKER SERVICES IN WASHINGTON D.C.

PROJECT ROLE Construction/Project Management LEVEL OF INVOLVEMENT IN THE PROJECT Pre-lease review/advisory of building infrastructure and all architectural and construction project management activities.

Ann Linstrom

Senior Managing Director Workplace and Occupancy Strategy E: [email protected] T+ 1 202 629 5017

Specialties • Legal • Financial Services • Nonprofits and Associations

Notable Experience Legal Finnegan Henderson 250K SF Industry K2M 140K SF Industry National Association of Chain Drug Stores 24K SF Industry Board of Governors of the Federal Reserve System 650K SF Industry The World Bank 55K SF

PROFESSIONAL EXPERTISE Ann Linstrom joined Savills in 2018 as an expert interior designer for commercial real estate transactions in the Washington DC metro area. With more than 30 years of experience providing design and management for complex interior projects, Ann has the ability to produce innovative, as well as functionally sound solutions for companies across many industries. She has advised a spectrum of corporate, nonprofit and institutional clients in industries ranging from legal to financial services. Ann’s expertise extends to her professional and personable ability to direct a team in an effective way, all while building long-lasting relationships with her clients. To do so, Ann focuses on inclusive leadership and communication that promotes meticulous budget management, quality assurance and timely project delivery in each stage of the process. Alongside her teammates, Ann creates a client-first, inclusive environment that clients seek. Prior to joining Savills, Ann was a senior project manager at CBRE and principal at SKB Architecture and Design where she developed her long list of clientele. She was also associate principal at a large firm in Washington DC, and has directed successful design teams in Chicago, Nashville and Dallas. AWARDS, ACHIEVEMENTS AND ACTIVITIES Ann is not only a licensed interior designer, but also an active member of the International Interior Design Association (IIDA). Throughout her career, Ann has been on the receiving end of a list of accolades. She was awarded the 2016 Associated Builders and Contractor Metro Washington and Virginia Excellence in Construction Award for her work on the K2M assignment. In 2010, her efforts for Davis Wright Tremaine LLP earned her the 2010 Washington Building Congress Award. In 2008, Ann received the 2018 NAIOP Best Interiors Award of Excellence for the Greenspun Shapiro project, and also the IIDA Commercial Design Gold Award for Jenner & Block NY. A year earlier, she received the 2007 IIDA Commercial Design Silver Award for her contribution to Miller & Chevalier DC. EDUCATION Louisiana State University Bachelor of Interior Design

SAVILLS.US | 29

PROJECT ROLE Market Research LEVEL OF INVOLVEMENT IN THE PROJECT Market surveys and trends. Provides lease comps, vacancies, availabilities and other relocation option information.

Arty Maharajh Research Director E: [email protected] T: +1 202 624 8545 Specialties • Business Information Services • Economic Research • Market and Trend Analysis

PROFESSIONAL EXPERTISE Arty Maharajh is the Research Director for the Mid-Atlantic and Southeast regions at Savills, where he brings many years of experience across commercial real estate research and data analytics, specializing in business information services, economic research, and market and trend analysis. Prior to joining Savills, Arty began his career at CoStar Group, Inc. where he oversaw a large team of analysts and field researchers for multiple markets. He also interned at the U.S. State Department. AWARDS, ACHIEVEMENTS AND ACTIVITIES Arty is an engaged leader among commercial real estate research professionals. Prior to relocating to Washington DC in 2022, he was a big brother with Big Brothers Big Sisters of America and was an active member of the Posse Foundation, a national nonprofit organization that provides scholarships for students to attend colleges and universities in the U.S. He also has been an active volunteer with Feeding America and the Food Bank. EDUCATION George Mason University B.A. Government and International Politics

30 | PROPOSAL FOR REAL ESTATE BROKER SERVICES IN WASHINGTON D.C.

PROJECT ROLE Structured Finance LEVEL OF INVOLVEMENT IN THE PROJECT Capital markets due diligence. Tenant improvement fnancing.

Lindsay Stroud

Senior Managing Director E: [email protected] T: + 1 202 629 5007

Specialties • Capital Markets • Investment Sales • Loan Sales • Programmatic Debt • Bridge Debt

PROFESSIONAL EXPERTISE Lindsay Stroud is Senior Managing Director in Savills Washington, DC office where he specializes in Capital Markets. Over his more than 18 year career, he has structured and executed over $4.2 billion of debt and equity transactions nationally for ground-up development, acquisitions and recapitalizations of multifamily, office, industrial, retail, residential and hotel property types. Lindsay has also advised domestic and multinational companies, as well as foreign sovereign wealth funds, on $1.5 billion of debt restructurings and fund investment decisions. In addition, he counsels clients with joint venture equity, mezzanine debt, senior debt and acquisition financing. Prior to joining Savills in 2014, Lindsay held capital markets positions at Perseus Realty Capital and Phillips Realty Capital AWARDS, ACHIEVEMENTS AND ACTIVITIES Outside of the office, Lindsay serves as the president of the Stroud Foundation for Children with Learning Differences and served for many years on the Boys and Girls Clubs of Greater Washington. He is an active member of CREBA, DCBIA and ICSC. EDUCATION St. Lawrence University B.A., History Georgetown University M.B.A.

SAVILLS.US | 31

PROJECT ROLE ESG Strategies LEVEL OF INVOLVEMENT IN THE PROJECT Sustainable fit-out guidelines & space management guidance. Green leasing support. Sustainable & inclusive vendor selection support.

Hyon K. Rah

Director, ESG Consultancy E: [email protected] T: +1 202 695 9454

Specialties • Sustainability • Water & Energy Resilience • Green Leasing • ESG Auditing & Strategy Development

Notable Experience Hospitality 30+ Luxury Destinations Including the first LEED Platinum boutique hotel in the U.S. Renewable Energy Utility-Scale Solar Developers Environmental and community engagement strategies lead Government Saxon Ministry of the Environment EU Flood Risk Directive compliance for River Elbe Government DOD Net Zero energy and water facility planning & advisory

PROFESSIONAL EXPERTISE Hyon is a sustainability and resilience strategist who has been creating and delivering built environment solutions to protect the environment, communities, and investments since the early 2000s. Her clients range from global companies, such as Four Seasons, Hyatt, and Tishman Speyer, to local and national governmental entities, including the City of Liverpool in the UK. Leveraging her expertise in architecture, renewable energy, and water management, she helps organizations develop and implement sustainability and environmental, social, and governance (ESG) strategies in alignment with their organizational goals. She has lived in seven countries and worked in over 20, navigating different disciplinary, cultural, and regulatory landscapes in five languages. Hyon is part of Savills Earth, the sustainability consulting arm of Savills with a global network of 100+ sustainability professionals, and regularly speaks on her various areas of expertise in sustainability. AWARDS, ACHIEVEMENTS AND ACTIVITIES Hyon is an award-winning educator who has developed and taught undergraduate- and graduate-level course on sustainability and resilience in the built environment for the University of the District of Columbia and Goucher College. She is an active member of Commercial Real Estate for Women (CREW), serving on the programs committee for the DC chapter. In 2019, she was appointed by the County Executive to serve on Baltimore County’s Design Review Panel, which provides binding technical recommendations to proposed development projects. She is a member of Urban Land Institute (ULI)’s Responsible Property Investment Council (RPIC). Hyon holds the following professional credentials: • LEED AP, for green buildings • Fitwel Ambassador, for healthy buildings • ENV SP, for sustainable infrastructure planning • EcoDistricts AP, for sustainable and climate-resilient community development EDUCATION University of Washington B.A., Architectural Studies, Minor in Japanese University of Michigan Master of Architecture Barcelona Tech, BTU-Cottbus, University of Nice Sophia Antipolis, & Newcastle University M.Sc., Water Management & Hydroinformatics (joint degree)

32 | PROPOSAL FOR REAL ESTATE BROKER SERVICES IN WASHINGTON D.C.

Listing of partners/independent contractors who would be part of the group.

Partners and independent contractors As previously mentioned, we choose not to partner with an architectural firm or other partners before we know you, and the trajectory of your project. We have many relationships with architects, engiineers and other consultants in the region and will work with you to select the right ones for your project. Our process will seamlessly fold their expertise into our timeline, while giving you the benefit of choice.

SAVILLS.US | 33

04. SCOPE OF SERVICES

Outline the type and level of services and the specific process for this engagement.

Our brokers and consultants take a strategic consultative approach to real estate problem solving, helping occupiers develop solutions that empower their people and enhance organizational objectives. We seek to understand clients’ objectives from broad ranging perspectives including human capital, technology needs, financial goals and growth plans to create solutions that support—rather than limit—the organization. This aligns clients’ real estate strategy with their organizational strategy, mitigating any risk for seemingly good real estate decisions to become poor business decisions. As the premier tenant-only commercial real estate advisor, Savills’ position is built on our disciplined approach to every phase of the real estate transaction—a comprehensive process that leverages our unique market research infrastructure and leaves no stone unturned. When examining market conditions, we employ a conflict-free, forensic, data-focused methodology to ensure all logical alternatives are considered.

34 | PROPOSAL FOR REAL ESTATE BROKER SERVICES IN WASHINGTON D.C.

ACQUISITION PROCESS Step One – Strategic Planning Developing Real Estate Strategy We will begin our partnership with a kick-off and strategic planning session to deep-dive into NAIC’s short- and long-term goals, decision drivers, objectives and challenges, while also finalizing logistical processes including stakeholder involvement from NAIC, roles and responsibilities, tracking and communication plans. The project team will review the NAIC plan and provide any insight and suggestions for additional consideration, including but not limited to NAIC’s ideal space envelope,

space features and amenities strategy to create a productive, future-proof workplace that encourages collaboration and innovation, and maximizes employee attraction and retention. A Decision Criteria Matrix (see below example) will be developed as a result of the strategic planning phase and will help NAIC objectively score, on weighted average, each option being considered.

Develop Summary Materials We will utilize our industry and market expertise to add any relevant insight to jointly finalize a dynamic and custom strategic plan for NAIC with specific project objectives and goals. We will then outline a governing project plan either for the project team alone or for a broader audience within NAIC. This can address NAIC’s decisions, desires and directives, and will ultimately form the framework for near- and long-term strategic decisions. Any plan should include at least the below elements: • Demographic and commutation analyses • Decision Criteria Matrix • Space program • Project success criteria

SAMPLE Real Estate Strategic Plan

2022

CLICK TO VIEW 1 1 2 5 1 7 th S t r e e t - S u i t e 2 3 0 0 | D e n v e r , C o l o r a d o 8 0 2 0 2 | 3 0 3 . 3 0 2 . 5 1 0 0

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ACQUISITION PROCESS Step Two – Market Evaluation Labor and Location Services Savills uses a data-driven analytical approach that includes commutation, demographic trend and zip code analyses to identify the optimal location(s) for a client requirement. We can assess employee attrition risk based on commutation change associated with an office move, and we help clarify the talent acquisition and retention profile of such a move. For NAIC, Savills will create maps that will enable the firm to better visualize location options through these various data points.

“13.[NAIC] Staff prefers the Red line.” Questions and Answers for RFP 2090 DC Real Estate Broker Search

Q1 2022 - Office

MARKET IN MINUTES Savills Research

Washington, D.C.

Washington, D.C. sees slowdown in leasing demand to start the year Washington, D.C. office leasing exhibited a moderate slowdown in the first quarter as occupiers became more cautious over omnicron concerns. Just over 1.5 million square feet (msf) was transacted this quarter, compared to a whopping 3.0 msf last quarter, and slightly less than the 1.2 msf leased a year ago. While the end of the year typically has a higher volume of lease executions, this was markedly lower than expected and may be only a temporary slowdown in demand. The federal government, D.C.’s largest employer and lessee of office space, has been out of the office since the pandemic started. Their program of a required return-to-office is expected to have a large psychological impact on the private sector when federal employees return officially. Despite this stutter-step in recovery for office demand, many companies are willing to take advantage of favorable market conditions and abundance of quality available options.

Key Statistics Q1 2021

Q1 2022

Inventory

121.6 MSF

123.9 MSF

Availability Rate

20.4%

20.7%

Asking Rental Rate

$55.53

$55.33

Class A Asking Rental Rate

$58.68

$59.02

Quarterly Leasing Activity

1.2 MSF

1.5 MSF

Available Sublease Space

3.3 MSF

Office-Using Employment Growth

y-o-y Change

3.1 MSF

Office-using job growth y-o-y change Office-using job growth y-o-y change (%) Non-farm job growth y-o-y change (%)

12.0%

20

10.0%

Number of jobs (thousands)

15

Availability remains high, continued uncertainty makes for tenantfavorable conditions Availability remains at an historically high level and relatively unchanged over the past year, drifting from 20.4% at the beginning of 2021 to 20.7% in 2022. Sublease inventory hit a high at the end of 2020 with 3.4 msf available and only dipped slightly to 3.1 msf available as of Q1 2022. Not only is availability high but the length of time spaces are staying on the market has increased 14.0% from an average of 24 months reported a year ago to 28 months now. There were 24 leases signed over 10,000 square feet this quarter, notably Foley & Lardner signing a 15-year lease at 3000 K Street NW and ICI (Investment Company Institute) signing a 17-year renewal at 1401 H Street NW. Other leases reflect the uncertainty of the times as the U.S. Department of Labor signed a 36-month renewal at 800 K Street NW, and Buchanan Ingersoll & Rooney PC expanded its footprint on a short-term basis at 1700 K Street NW for twelve months.

8.0% 6.0%

10

4.0%

5

2.0%

0

0.0% -2.0%

-5

-4.0%

-10

-6.0% -8.0%

-15 -20

-10.0% Q1 2017

Q1 2018

Q1 2019

Asking Rent and Availability

Q1 2020

Q1 2021

Q1 2022

$70.00

25.0%

$60.00

The office market has become increasingly more bifurcated as occupiers continue a flight to quality Average Class A asking rents are up $0.34 psf from a year ago. While non-Class A rents are down $1.27 psf over that same period. Even as tax and operating expenses have increased, building owners have successfully been able to maintain and increase their asking rates in top-tier buildings. As a result, expect the spread between Class A and non-Class A buildings to increase in 2022 as tenant flight to quality continues.

CLICK TO VIEW

Occupiers active in the market and in a position to sign a lease in the near-term will benefit from soft market conditions and should expect favorable terms and flexibility



Tenant-favorable market conditions will persist as availability remains at an historically high level and tenants remain focused on a hybrid workplace strategy



Subleasing, traditionally an effective method for reducing real estate costs, is proving difficult in a market where leasing volume is down and the compromises of taking as-built space with limited terms don’t always compare favorably with new builds supported by increasingly generous concessions

15.0%

$30.00

10.0%

$20.00 5.0%

$10.00

Q1 2018

Q1 2019

Q1 2020

Leasing Activity

Q1 2021

0.0% Q1 2022

5-year quarterly average

3.5 3.0

Square feet (millions)



20.0%

$50.00 $40.00

$0.00 Q1 2017

Outlook

-12.0%

Average asking rental rate ($/SF) Class A average asking rental rate ($/SF) Total availability rate (%) Class A availability rate (%)

2.5 2.0 1.5 1.0 0.5 0.0 Q1 2017

Q1 2018

Q1 2019

Q1 2020

Q1 2021

Q1 2022

Market Research Our local research team will support the project team and provide market intelligence and analytic analyses so NAIC can make informed business decisions. Savills invests millions of dollars annually on research information services and analytic tools that are dedicated solely to occupier innovation and data gathering. Leveraging these sophisticated tools and custom analytics, we help clients assess options considering their business goals to create leverage during negotiations.

36 | PROPOSAL FOR REAL ESTATE BROKER SERVICES IN WASHINGTON D.C.

ACQUISITION PROCESS Building Options Evaluation



Parking

Once the strategic plan is finalized, the project team will create a market survey of viable alternative occupancy options for NAIC to review and consider. We customize the information with details on each alternative, including but not limited to:



Signage rights



Landlord concessions



Capital stacks



Prospective landlords’ capitalization, investment criteria and portfolio expiration profile



Available space





Building infrastructure details



Building amenities

Sustainability certifications, including LEED, WELL and Fitwel



Ability to control operations



Quoted rental rates



Current operating expenses



Real estate tax information Expansion/Contraction capability



 arge existing tenants in the L building, if any



Transportation details



Floor plans and photos



Local maps

Beyond understanding rental rates and concession packages, Savills compares options based on critical business factors, like space planning efficiency, optimal adjacencies, employee commute times, demographic trends, sustainable space and building design, and office technology, among others. This combined data will empower NAIC to understand market drivers, control costs, calculate risks and ultimately make the best-informed decisions. See below for a sample of our Building Options plan.

ADDRESS

660 N Capitol Street, NW

111 K Street, NE

300 New Jersey Ave, NW

444 N Capitol Street, NW

Revolution 360 3600 Brighton Boulevard

STATUS

Existing

Existing

Existing

Existing

Existing

Existing

OWNER / DEVELOPER

Republic Properties Corp.

Rubenstein Partners

Jamestown, LP

MEBAR Realty Holding Trust

Property Group Partners

Communications Workers of America

BUILDING SIZE (SF)

222,064

567,286

CONTIGUOUS SPACE AVAILABLE (SF)

205,696

147,922

FLOOR PLATE SIZE (SF)

18,505

19,706

ASKING RENT (SF)

$28.00 - $32.00 NNN

$25.00 NNN

E L P M SA

633 17th Street

607,987

1,328,369

171,000

580,000

302,002

201,033

171,000

258,000

28,965

22,875

35,450

19,564

$36.00 NNN

$31.00 NNN

$34.00 NNN

$18.50 NNN

FULL FLOORS AVAIL.

2-12

18-25

DIRECT/SUBLEASE

Direct

Direct

ESTIMATED DELIVERY

N/A

N/A

PROJECT CONSTRUCTION STATUS

N/A

N/A

AMENITIES

Fitness center, conference center, tenant lounge, roof top outdoor deck, bike storage, floor-to-ceiling windows

LEED Gold, fitness center, conference center, tenant lounge, outdoor seating area, banking, dining & heated covered parking

PARKING RATIO

30 spaces total

ANCHOR TENANTS

No Tenants Yet

LISTING COMPANY

JLL

JLL

Cushman & Wakefield

Cushman & Wakefield

JLL

CBRE

Unlikely to wait for 2025

Building-in-building opportunity

Low-rise could be isolated. Unlikely to wait for 2025

Unlikely to wait until 2025. Sub-par parking

Full building opportunity. Unlikely to wait until 2025 unless purchase. Excellent parking.

Building requires complete renovation. Purchase opportunity.

NOTES

11-22

20-30

1-5

16-21, 23-30

Direct

Direct

Direct

Direct

N/A

N/A

N/A

2022

N/A

N/A

N/A

N/A

LEED Silver, fitness center, conference center, tenant lounge, outdoor seating area, bike storage

LEED Gold, fitness center with showers & lockers, conference center, tenant lounge, outdoor seating area, banking, & dining

LEED Silver, fitness center, private balconies, bike storage

Fitness center with showers, conference center, outdoor seating area, dining & bike storage

1.00/1,000

1.70/1,000

0.67/1,000

4.00/1,000

1.00/1,000

Office of the Comptroller Sundance Energy

Sherman & Howard Brownstein Hyatt

Ovintiv Guild Education Wheeler, Trigg, O’Donnell

N/A

CO Dept. of Labor/ Employment

SAVILLS.US | 37

ACQUISITION PROCESS

Tours After Savills and NAIC review the market survey, we will set up tour times to visit all viable alternative properties, accompany NAIC on all tours, and help identify pros and cons of each. Savills will provide tour books with relevant information on each site.

CLICK TO VIEW



38 | PROPOSAL FOR REAL ESTATE BROKER SERVICES IN WASHINGTON D.C.

ACQUISITION PROCESS Step Three – Analysis & Lease Negotiation

Our proven, tenant-oriented negotiation guarantees that a competitive negotiation table is set for when we engage with a potential landlord. Savills is the only firm that can combine professional negotiation expertise and an unbiased tenant-only commitment to ensure you receive the best deal.

The RFP will address a range of variables including space availability timeline, base rent, escalations, taxes, ownership, construction contribution, free rent, electricity, overtime HVAC costs, sublease rights, expansion rights, termination rights, renewal rights, alterations, restoration clauses, security, parking, etc. Before going to market, we will review the RFP with NAIC, modify as mutually agreed, and then issue the RFP to each identified landlord or developer. Savills will require each landlord or developer to respond to the initial RFP in the form we provide them. This will continue to hold each prospective developer accountable on every detail at every turn of negotiations. An example of a detailed RFP is below. Savills 1125 Seventeenth Street, Suite 2300 Denver, Colorado 80202 Tel +1 303 302 5100

March 24, 2022 Name Company Address City, State Zip Email: Re:

BUILD-TO-SUIT BASE BUILDING SPECIFICATIONS FOR BUILDING ONE (OFFICE)

Request for Non-Binding Proposal United Launch Alliance LLC Building Name

Dear Name: Thank you for your interest in having United Launch Alliance LLC (“Tenant”) as a tenant in your building. Pursuant to Tenant’s request, Savills is soliciting a Non-Binding proposal from Ownership for office space at the abovereferenced property. Please respond to the enclosed Request for Non-Binding Proposal by November 7, 2018 for your building to be properly evaluated.

Request for Proposals/Counter Offers/ Negotiations Savills will work with NAIC to carefully compile a short list of properties that best fits NAIC’s objectives for further evaluation and negotiation. Once the ideal properties are identified, the project team will aggressively negotiate the most favorable terms possible. This starts with a customized Request for Proposal (“RFP”) driven by the critical elements surfaced in the strategic planning phase of the project. By incorporating all important elements in the initial RFP, we advocate for NAIC’s objectives from day 1.

Tenant:

United Launch Alliance LLC

Landlord:

Ownership name

Financial Structure:

Please confirm the current debt and equity partners of the Building.

Building:

Building Name Building Address

Premises

Approximately 175,000 rentable square feet (RSF) of office space located in the Building.

In addition to, separate from and exclusive of the Tenant Improvements, the Landlord, at its sole cost and expense without pass through to Tenant, shall provide Tenant with the following minimum base building standard improvements and services for the Premises (initial Premises, Hold Space, Expansion Space, Right of First Offer Space, or other space leased by Tenant during the Lease Term or the Option Terms as defined in the Lease to which this Exhibit is attached) and all Common Areas. Such improvements and services described below constitute the "Base Building" referenced in the Lease. A.

1.

Please provide the following information: 1) 2)

Total rentable and usable area of subject Premises and proposed Floors Percentage floor loss factor of the subject Premises

All Final measurements will be in compliance with BOMA Standards. Commencement Date:

The Commencement Date will be the later to occur of ________ or upon substantial completion and occupancy of the Premises. Tenant will be granted 60 days advance access to the Premises to complete installation of FF & E.

Lease Term:

Please propose Lease Terms of Ten (10) (“Option A”), Twelve (12) (“Option B”) and Fifteen (15) Years (“Option C”)

Rental Rate:

Please specify the proposed net rental rate and any proposed rent escalation.

Rent Abatement:

Please specify proposed Rent Abatement.

Real Estate Taxes & Operating Expenses:

Please provide the following real estate tax and operating expense information: 1)

Please provide the final 2016 and 2017 Real Estate Taxes and Operating Expenses.

1

GENERAL REQUIREMENTS

CLICK TO VIEW

B.

Upon the relevant Commencement Date, or date the initial improvements to the Premises begin, whichever is the earliest, the Base Building shall, in order to allow Tenant to complete construction and obtain a Certificate of Occupancy (or its equivalent) for the applicable space be in complete compliance with: (a)

All applicable local, state and federal fire and building codes and regulations.

(b)

American with Disabilities Act and Handicap regulations.

2.

Landlord shall be responsible for the improvement within the Buildings main ground floor and basement lobby including stone flooring, high quality wall finishes· ceiling and lighting treatments.

3.

In conjunction with delivery of the Premises in Tenant Improvements Readiness Condition, Landlord shall provide all areas within the Premises in broom clean condition and all systems serving the Premises or within the Premises shall be in good working order.

4.

Each floor of the Building shall accommodate a minimum 9’-0” furnished ceiling height throughout.

CONCRETE & LIGHTWEIGHT CONCRETE FLOORS 1. 2.

The concrete floors shall be prepped and ready to accept Tenant's carpeting and hard surface floor covering in accordance with manufacture instructions without further treatment. The first floor slab of the Building shall be constructed to contemplate in-floor electrical, telephone and data distribution based on a mutually agreeable distribution system.

3.

Floor flatness within the Premises shall have a finish with a tolerance of ¼” inch in ten feet is non-cumulative.

4.

The floor areas of the Premises are designed for structural loading capability that can accommodate the placement of furnishings, fixtures and equipment that is consistent with the needs of Tenant. At a minimum, floors to be designed and constructed to support the following loads: (a)

Partition Load – (20) twenty lbs./sf. Live load design criteria

savills-studley.com

Once all RFPs have been issued, we will initiate formal NAIC discussions with each landlord or developer to clarify issues, educate landlords/ developers on the benefits of a transaction with you, and perform any additional due diligence on each option. We will prepare reports for you that include all potential options (and those that are not viable), outlining some of our preliminary ideas and providing additional commentary on the opportunity for each one.

SAVILLS.US | 39

ACQUISITION PROCESS Financial Analysis

Preliminary Construction Budget

Savills will prepare detailed financial and non-financial analyses for each potential relocation option. While our analyses are always customized to focus on our clients’ specific objectives and requirements, our analytical models typically include:

Savills and the construction manager will prepare and submit to NAIC a preliminary construction budget for each of the final alternatives. This step is critical in determining which spaces to pursue, due to the differences in construction costs of each building.

• Comparative cash flow analysis

Final Recommendations

• Capital budgeting

In order to present our final recommendations to NAIC, Savills will utilize a customized financial analysis that includes a comparative cash flow analysis, as well as a comparative qualitative analysis. Similar to the Decision Criteria Matrix and the Decision Score Card included in our Sample Real Estate Strategic Plan on page 39, Savills will weigh lease flexibility, optionality, cost, transportation access, etc. to help NAIC objectively compare and score all viable options. Savills will prepare a presentation to NAIC’s executive committee and will work with NAIC to develop any needed support material and rationale for the decision that the NAIC team is recommending to your internal stakeholders.

•B  uilding systems analysis (deficiency budgeting/deferred maintenance projections) •Q  ualitative analysis (building amenities, flexibility, options, access to transportation, etc.) •L  andlord due diligence (ownership strategy, capitalization, collateralization model, risk profile relative to largest tenants, including anticipated “tenant windows of opportunity”) •P  roprietary analytics (opportunity assessments, demand forecasting, market prediction and “When to Strike”) A sample financial analysis is included on pages 59-61.

Block Layouts / Space Plans The project team will prepare and present preliminary drawings of NAIC’s space requirements in each of the buildings. This process will give NAIC an accurate reading of exactly how many square feet are necessary at each of the identified properties. This is an essential step due to differences in planning efficiency, sometimes referred to as “loss factor”, of floor plates at various buildings, which varies based on floor plate size, column location and core location. Each alternative will be broken down into rentable square feet (“RSF”) and usable square feet (“USF”). Even though two alternatives may have the same USF, NAIC may require anywhere from 5-25% less RSF at one of them, due to the building’s efficiency and relative to NAIC’s layout requirements.

40 | PROPOSAL FOR REAL ESTATE BROKER SERVICES IN WASHINGTON D.C.

Lease Documentation NAIC and Savills will receive the landlord’s or developer’s document draft, reflecting the terms of the executed LOI, and distribute copies to NAIC’s legal counsel. NAIC’s attorney(s), along with Savills, will review in detail, redline and identify business terms and other components of the lease that should be modified throughout the lease negotiation stages. Savills and NAIC’s legal counsel will summarize all proposed changes and prepare a response. NAIC’s attorney(s) will work closely with Savills to negotiate with the landlord or developer and its attorney to settle all outstanding issues and document language. NAIC and the landlord or developer will then execute the lease document.

SAVILLS | 41

Describe the firm’s ability to assist with architectural, design, furniture and finishing needs. Also describe how the firm will be able to assist the NAIC with visioning the “office of the future”.

WORKPLACE STRATEGY Organizations are recognizing the decisions made in this new work environment are critical for supporting business, driving productivity, attracting and retaining top talent. This is a crucial moment to determine the future of your work experience. Savills’ Workplace Strategy team engages clients to understand their current workplace, leadership and employee sentiment while applying workplace trends and policies to create a decisional brief customized to their business.

We can help answer questions such as: • How will a hybrid work environment impact employee engagement long term? • How can culture, collaboration and mentorship be maintained as we embrace a higher degree of remote work? • How do we balance business strategy, the employees’ needs and the need to incorporate adequate meeting spaces for collaboration & external visitors? • What types of spaces do we need to support a hybrid workforce? Costs for Typical Organizations

Through a combination of qualitative and quantitative discovery methods, the Savills Workplace team will help NAIC truly understand workplace opportunities and learn how to best leverage your most important assets—your people and your space.

People are the Center of Business

People costs are 5x or greater than real estate and technology costs

42 | PROPOSAL FOR REAL ESTATE BROKER SERVICES IN WASHINGTON D.C.

SAVILLS WORKPLACE APPROACH FOR NAIC

NAIC has a unique opportunity to shape how the office is used for many years to come by listening to their employees and offering an office experience that suits the unique needs of the Washington D.C. office. Savills will help guide NAIC through a process that evaluates multiple occupancy options. Our team will work with you to craft a bespoke process as indepth or high level as desired to meet NAIC’s stated needs.

Our diverse team of professionals with extensive experience in workplace strategy, space planning, project and change management will provide NAIC with the knowledge & tools to create a welcoming and collaborative space that enhances recruiting and retaining staff in a hybrid environment. Our quantitative research, firsthand accounts, and comprehensive information gathering, will provide you with a path forward for a successful future office experience. Our team has performed an initial analysis of your existing space & headcount. From this analysis we have determined the following: •

With approximately 50% of the total headcount (~25) needing offices, and your anticipated growth of 2-3 people over the next 5 years, your current space has more than double the required number of offices, creating an opportunity for increased space efficiency.



The remaining 50% of your headcount will be based in a workstation. However, your current space only has six. Our in-house furniture consultant can provide you with the guidance & information needed to accommodate everyone.



To meet NAIC’s desire to create a larger boardroom and more space for collaboration, Savills will provide an in-depth analysis of your space and offer occupancy scenarios on how to accommodate the everevolving way of working. We can suggest spaces needed by your teams to encourage the face-to-face collaboration, team connection, and sense of community NAIC is concerned about losing with the switch to a hybrid workplace.

SAVILLS.US | 43

PROCESS Workplace Strategy is about understanding the inner workings of your company and translating that into effective space for your people. Through our three-part process we strive to understand NAIC and help plan the future of your workplace that suits you. The services listed below are itemized as an in-depth offering, based on NAIC’s Washington D.C. size requirement, we will tailor which engagements will be most useful:

SAVILLS W O R K P L A C E S T R AT E G Y

OUR WORKPLACE STRATEGY PROCESS • • • •

Analyze current policies, comms, surveys & data Existing floorplan analysis Discover Headcount & position analysis Space Walk-through

1. • • •

Current-state analysis Benchmarking & metrics report Organizational analysis

• • •

Leadership check-in Anonymous survey Employee and/or Define focus groups departmental Identify crucial space requirements

2.



• • •

Identify & study staff working styles Focus groups & surveys Executive visioning SAVILLS WO R K P L AC E S T R AT E G Y

G2: 9,131 usf

5th Floor: 46,209 usf

WORK SEATCOUNT:

298



Multiple occupancy scenarios • Findings & Deliver recommendations • Reconciled future space program • Construct space programs • Decisional brief • Develop space standards

3.



Use modeling to compare / contrast

VIZIENT PORTFOLIO STUDY Client Name: Client Type: Address: Floor: Scenario:

PRE-PANDEMIC MOTIVATORS FOR COMING INTO THE OFFICE | SKOKIE

Total Required USF: Total Focus Work Seatcount: Total Collaboration Seatcount: Density (USF/ Work Seat): Collab Ratio (Collab / Work Seats):

USF REQUIREMENT

OVERALL AVERAGE OF PRIMARY OFFICES ASSIGNED STAFF:

100

SITE UTILIZATION: (STAFF/ WORKSEAT):

34%

ACCORDING TO 40% ANTICIPATED ATTENDANCE

SKOKIE MOTIVATORS

TOTAL USF 82%

77%

TO INTERACT WITH TEAM OR PEERS

53%

Enclosed Office

46%

33%

MANDATED BY MANAGER

23%

12%

Open Office

Collaboration/ Third Spaces

20,000

32%

TOTAL Phone / VC Room 4 person Collab Booths 3-4 Person Room 6-8 Person Room 10-12 Person Room 18-20 Person Boardroom

15,000

29%

185

TOTAL 6' Benching Workstation

25,000

TO INTERACT WITH MGMT OR LEADERSHIP

8%

TOTAL Dedicated Private Office Bookable Private Office

30,000 43%

14%

COLLABORATION WITH OTHER TEAMS

DENSITY (USF/ WORKSEAT):

40,000 35,000

45%

GET OUT OF THE HOUSE / WORK/LIFE BALANCE

MENTOR / TRAIN OTHERS

%)

)

)

0%

(10

0%

TE MO

TE

TE

MO

MO

RE

RE

#3

#4

#5

(2

(3

0% (4 #2 TE MO RE

RE

)

)

)

0%

0%

(5

(10

#1

NG

TE

ISTI

MO

BEST PLACE FOR FOCUS WORK

OTHER TEAMS

EX

INTERACT WITH MGMT OR LEADERSHIP SAVILLS WO R K P L AC E S T R ATWITH EGY COLLABORATION

Total Staff: Daily UTL: Total Users: Cushion: Adj. Req':

6% 13% 22% 16% 4% 40%

258 40% 103 20% 124

USF

6% 13%

40%

22% 4%16%

Work Seatcount

Collab Seatcount

Size Per

1,560 360 1200

13 3 10

0 0 0

120 120

USF

Work Seatcount

Collab Seatcount

Size Per

3,594 3594

100 100

0 0

36

USF

Work Seatcount

Collab Seatcount

Size Per

5,980 300 480 1,200 1,200 2,000 800

21 5 8 8 0 0 0

189 5 32 32 40 60 20

60 60 150 240 400 800

USF

Work Seatcount

Collab Seatcount

Size Per

4,369 1,500 600 400 619 1,000 150 100

1 0 0 1 0 0 0 0

89 25 10 0 16 38 0 0

1500 600 400 300 1000 150 100

Support Spaces

USF

Work Seatcount

Collab Seatcount

Size Per

TOTAL Copy / Print (1 per 25 users) Game Storage Room Café Storage Room IT Storage Room Marketing Storage Room Staff Lockers (for 50% of users)

1,126 124 200 100 400 200 102

0 0 0 0 0 0 0

0 0 0 0 0 0 0

30 200 100 400 200 2

TOTAL Café Entertainment / Multipurpose Area Reception Pantry / Break Area (1 per 50 users) 38 pp Training Room Video Production Wellness Room

0

6%

TO MENTOR OR TRAIN OTHERS

RE

MANDATED BY MANAGER

WORK-RELATED SOCIAL GATHERINGS

QTY 13 3 10 QTY 100 100 QTY 32 5 8 8 5 5 1

Circulation Space

VIZIENT PORTFOLIO STUDY

QTY 8 1 1 1 2 1 1 1 QTY 59 4 1 1 1 1 51

USF

TOTAL

11,000

TOTAL REQUIRED USF

27,629

71

“There are significant challenges in selling products over the phone.”

THOUGHTS & IDEAS



Having a side bar in a room rather than messaging in a virtual meeting Energy and enthusiasm in meetings Fax and scanning Beginning projects in person

TEAM ATTRIBUTES •



Need to be able to lead premier client experiences regardless of whether they are inperson or virtual Need to sometimes schedule these meetings on a whim

MEETING LIGHT INTERNALLYFOCUSED

CLIENT/VENDOR FOCUSED

QUIET & FOCUSED

LOUD & COLLABORATIVE

WORK DRIVEN INTERACTIONS

HIGHLY SOCIAL

HOW CAN THE OFFICE SUPPORT YOU?

SURPRISING REMOTE SUCCESSES? • • • •

More workable hours Significant cost savings without commuting; great for families On the whole, group loves being remote Certain teams see lots of advantages to working 100% remote

THOUGHTS ON WORKING REMOTELY? • •

WELCOME TO THE NEW NEIGHBORHOOD // SCENARIO 1

• • •

It is enjoyable to work from the office occasionally Instead of taking the day off when not feeling well I can still work from home

• •

Need privacy; phone calls are not good for a cubicle setting Hoteling system Rooms that allow for a polished virtual pitch or presentation with clients/members professional appearance! Security system boggs down client experience sessions Open workstations are not desirable; need a touchdown space with privacy

COAT CLOSET

MOST MISSED OFFICE ATTRIBUTES?

• • •

“IT protections on computers prevent attacks but bog down client experiences.”

MEETING HEAVY

TOUCHDOWN SMALL TOUCHDOWN SMALL FOCUS FOCUS MEETING MEETING OFFICE OFFICE

• • • • •

WORKSTATION

PURPOSE: An enclosed space for heads-down work. Not for all day usage

PURPOSE: Dedicated or shared workstation for all-day or partialday focus work

80sf 1 seat Team dedicated Quantity depending on number of team seats

• • • •

36sf 1 seat Shared vs Dedicated depends on team expected attendance Teams to be sat together

SMALL MEETING ROOM

MEDIUM MEETING ROOM

PURPOSE: An enclosed space for teams to hold small in-person or vitural meetings.

PURPOSE: An enclosed space for teams to hold mid-size in-person or virtual meetings

• • • •

SHARED OPEN COLLAB

Open plan communities organized by teams & workflow Create a ‘buzzy’, collaborative environment Provide teams with spaces for both focus work and collaborative work Neighborhood size varies per scenario Maximize exposure to daylight

TOUCHDOWN FOCUS OFFICE

• • • •

PHONE ROOM OPEN WORKSTATIONS

GOALS

SHARED OPEN COLLAB

KEY QUOTES:

“There was zero lag time transitioning to remote working.”

REMOTE WORK-PRONE

OPEN WORKSTATIONS

TEAM PURPOSE & FUNCTION Interacting with members to identify and achieve cost savings, as well as selling and delivering large engagements.

OFFICECENTRIC

TOUCHDOWN FOCUS OFFICE

PARTICIPANTS: Jack Gregg David Miller Andrea Fingers

NOV 3, 2O2O @3 pm CT

MEDIUM MEETING

CLIENT ENGAGEMENT (PART 2)

OTHER ITEMS

1.53

GET OUT OF THE HOUSE / WORK/LIFE BALANCE

HOW DO YOU WORK?

COLLAB RATIO: (COLLAB SEATS/ WORK SEAT):

INTERACT WITH TEAM OR PEERS

Amenity/ Special Spaces

5,000 12%

WORK-RELATED SOCIAL EVENTS

553

40% PROGRAM: 27,629 USF

27,629 135 278 205 2.06

10,000 17%

BEST PLACE TO DO FOCUS WORK

DENSITY (USF/ ASSIGNED STAFF):

Tealium Data TBD TBD Home 2 - Assumes up to 40% daily attendance

Workplace USF Allocation: Enclosed Office Open Office Collaboration/Third Spaces Amenity/Special Spaces Support Spaces Circulation Space

200sf 4-6 seats Shared between teams ~2-3 per neighborhood

• • • •

500sf 7-10 seats Shared between teams ~1 per neighborhood

OPEN COLLABORATION

PHONE ROOM

PURPOSE: Non-enclosed space between neighborhoods to collaborate & meet

PURPOSE: Shared enclosed space for private 1-1 conversations or phone calls

• • • •

• • • •

80 4-6 seats Shared between neighborhoods ~1 per 2 teams

40sf 1-2 seats Shared between teams ~1 per neighborhood

50

9

1. DISCOVER: DOCUMENTATION COLLECTION & REVIEW Savills will review existing real estate, design planning standards, HR policies, workplace communications and policies, organizational charts, and other documents to better understand primary business goals & the direction NAIC wants to move towards. This phase of the process is broken down into the following efforts:

Anonymous Employee or Leadership Survey • To understand work modes by department, workflow relationships • Provides the groundwork for function-based remote work assignment and potential in-office scheduling as needed • The survey will assist in the identification of key support, ceremonial & meeting/collaboration spaces to accommodate your internal team as well as visiting state insurance regulators.

Existing Data Collection & Analysis • Review HR provided headcount information and set up initial requirement scenarios. • Review any available productivity metrics, employee or manager surveys completed to date.

Existing Floorplan Analysis • An in-depth analysis of the current NAIC floorplan to understand the current layout and metrics of your office space with detailed quantification of such metrics as collaboration seats, type and distribution of space types.

44 | PROPOSAL FOR REAL ESTATE BROKER SERVICES IN WASHINGTON D.C.

• •



Understanding of how current headcount is accommodated within the floorplan Understanding of current collaboration space types & sizes in relation to the needs & wants of the employees. Identification of opportunities to accommodate new ways of working

2. DEFINE: DETERMINE THE DETAILS This portion of work builds on the initial data collection. It brings leadership insight, functional nuances and a checks & balances process to the future workplace. It helps verify and uncover additional information that was collected in the initial phase, and chart a path forward. High-Level Direction setting • Lead discussions with key leaders and stakeholders to identify important aspects of future space through presentation of “what we know” to make key decisions regarding nature of space. • Discuss & set key performance metrics. • Best use of space, looking through lens of key space allocations – workspaces, collaboration spaces & support spaces. • Outline workplace priorities. • Determine policy implications. • Conduct in-person employee focus groups with employees about the future of work to uncover details about desires for remote work, functional relationships, space needs & culture. These conversations act as a change communication vehicle as well as soliciting feedback. Technology & Furniture Consultation • To evaluate your current workplace technology & furniture to ensure your space is not only efficient & functional but, provides an inspiring, flexible, adaptable, and connected workspace that meets every worker’s individual needs.

3. DELIVER: FINALIZE DECISIONS

Once we have completed our quantitative and qualitative research and analysis, we will compile our findings in a comprehensive draft recommendations report to be discussed & finalized with the leadership team on how best to leverage your existing or future office space as well as provide key workflow insights across your organization. Data-driven Recommendations • Create Future Space Requirements Recommendation Report to present our recommendations to key decision makers • Review floorplan & survey analysis, leadership consensus, and future space recommendations

CHANGE MANAGEMENT STRATEGY

Change is challenging for everyone involved, end-users and leadership alike. It is critical to communicate early and often to make space transitions as smooth as possible. Savills can either act as the face of your change strategy, or behind the scenes partner supporting and advising every step of the way. The goal is to engage employees before, during, and after the change to maintain • a high level of morale and business continuity.



SAVILLS.US | 45

PROJECT MANAGEMENT Pre-Lease Project Management Support As part of our transaction services, Savills will include pre-transaction project management support. Before NAIC makes a decision regarding your occupancy plan, our Project Management team will provide base building due diligence and work letter negotiations for each viable option. The in-scope services proposed for this assignment are identified below.

Pre-Transaction (In-Scope) • • • • • • • •

Site visit to each proposed location Programming input Review of general building infrastructure and notation of existing conditions Coordination for independent MEP engineer evaluation, as needed Review of MEP systems description for deficiency Preliminary project scheduling Preliminary budget development input Review Letter of Intent and conformance with Lease Document

Post-Lease Project Management Services (Out-of-Scope Services)

• • •

• • • • • •







Post-transaction project management services, as detailed below, are available to NAIC on a fee basis. Savills will provide a separate fee proposal when the occupancy solution, project parameters and requirements are further clarified.

Phase II: Project Design Management •

Phase I: Project Planning

• • • •

Determine the overall project scope with NAIC. Define project requirements, schedule and cost. Determine the need for consultants (e.g. architect, engineer, security, network, etc.). Develop and issue NAIC RFP to potential consultants.

Review proposals, interview consultants, recommend consultant selections. Negotiate consultant contracts on behalf of NAIC. Schedule a kick-off meeting with all internal and external project team members and stakeholders to review project goals and objectives, establish roles and responsibilities for the project’s entirety. Analyze existing facility conditions compared to requirements. Prepare master project schedule incorporating all consultants. Generate preliminary tenant improvement budget. Review all consultant program documents. Review financial assumptions against proposed improvements. Determine technical requirements (e.g. computer room, backup power, specialty lighting, etc.). Manage space planning process adhering to budget for space design, soft costs, construction, tele/data cabling, security, furniture, moving, etc. Develop a team directory for both NAIC’s internal and external project teams and stakeholders. Ensure project procedures are clearly outlined. Establish a regular communication plan for reviews, approvals, and progress updates.

• • • •

46 | PROPOSAL FOR REAL ESTATE BROKER SERVICES IN WASHINGTON D.C.

Represent NAIC during design of schematics, designs, and construction plans. Confirm that schematic designs meet architectural and engineering requirements. Coordinate information between NAIC and all project team members. Coordinate and attend site visits and surveys with all team members. Monitor and manage the project schedule.

• • • • • • • • • •

Prepare detailed budget based on schematic design. Value engineer budget by recommending alternate methods and systems. Review schematics with NAIC and approve. Manage development of design documents. Update budget (as needed) based on design documents. Value engineer budget by recommending design alternates. Review design documents with NAIC and approve. Manage production of construction documents. Validate constructability, methods and materials. Final review and approval of all documents with NAIC prior to bid. Phase III: Furniture, Telephone/Data Cabling, Security & Audio/Visual

• • •

• • •

• • • •

Determine NAIC’s requirements for furniture, tele/data cabling, security, & audio / visual. Represent NAIC in procuring furniture, tele/data cabling, security, & audio / visual. Engage design consultants as required. Negotiate consultant contracts on behalf of NAIC. Manage design of plans for furniture, tele/data cabling, security, & audio / visual. Review designs with NAIC and approve. Prepare bid documents and submit to prequalified furniture, cabling, security, network contractors and vendors. Receive and review proposals. Interview candidates and recommend award of contracts. Negotiate contractor and vendor contracts. Release orders/contracts. Coordinate delivery, installation and punch list.

Phase IV: Construction Purchasing & Administration • • • • • • • • • • • • • • • • • • • • •

Represent NAIC during construction phase. Identify appropriate municipal permitting process. Facilitate building permit application. Review final list of prospective general contractors with input from NAIC. Prepare construction RFP incorporating all project requirements. Request proposals from prospective general contractors. Review proposals from prospective general contractors and prepare analysis of bids. Interview qualified candidates. Prepare final recommendation and terms of award. Negotiate general contractor contract. Conduct construction kick-off meeting. Chair regular project meetings with architect, engineer, contractors, vendors, etc. Confirm all landlord requirements with all vendors and contractors. Provide NAIC with project progress reports at mutually agreeable intervals. Review and process contractor and vendor payments. Monitor and manage construction costs. Provide NAIC with anticipated cost reports. Review requests for change in cost and/or schedule. Advocate on behalf of NAIC. Monitor and report project status to all team members to mitigate construction conflicts. Mediate and resolve construction conflicts that do occur. Facilitate completion of punch list and proper contract close out. Review and process final payment and lien documentation.

SAVILLS.US | 47

MOVE MANAGEMENT Our Move Management team provides fullservice relocation support. From helping NAIC plan and execute their move, to advising on new furniture best practices, to project close-out and decommissioning, we manage all the details so that NAIC can focus on their business. Integrated Move Services Organized Around NAIC New space is exciting; moving is not. It requires time, energy, and resources. It can be tremendously disruptive to business operations and people’s personal lives. Savills Move Management services minimize the pain of moving. We help clients capitalize on opportunities to save money and time, maximize efficiency of their new space, and leverage every possible strategic opportunity to their benefit. Beyond simply relocating stuff from point A to point B, we work with clients to understand their move in the context of their unique situational requirements. Our detailed custom logistics plans are designed around NAIC’s operations, schedules, budgets and people. They incorporate all relevant services, extensive team coordination and detailed processes, ensuring that every detail of every move is anticipated, planned and executed.

Our Move Management team has years of experience relocating operations. Our processoriented approach, meticulous planning and rigorous task management take the burden of moving off our clients and make the experience of moving as easy and seamless as possible. Move Management Process As part of our Move Management process, Savills will assist NAIC with the following: •

Develop a Move Plan and detailed schedule. Monitor and update as needed.



Develop Project Plan and responsibility matrix. Monitor and update as needed.



Create “move numbering plan” on destination floor plans as needed.



Assist with establishing a Move Matrix of all employees, technology, furniture, equipment, etc.



Conduct move meetings with Project Move Team and move coordinators as needed.

48 | PROPOSAL FOR REAL ESTATE BROKER SERVICES IN WASHINGTON D.C.







Coordinate RFP process for all vendors related to move including technology disconnect/ reconnect and server room equipment services, and liquidation of any furniture/equipment. Pre-walk locations with client, then bring in vendors to bid. Analyze bids and recommend appropriate vendors for project. Manage the selection and negotiation of the mover, IT and any other relocation vendors stated above. Conduct all employee move meetings, prepare move memo and procedures for move. Premove coordination as needed including prepping destination site with move numbers and employee location numbers.



Supervise all vendors at both origin and destination sites.



Manage insurance certificates for all vendors for both origin and destination sites. Schedule building move in/move out times, etc.



Prepare and develop welcome memo/gift for employees as requested and distribute.



Post-move support on the first day of business.



Manage the move weeks and post move activities/tasks.



Coordinate furniture liquidation (at origin location) through meetings with vendors and client.



Conduct independent task force meetings as client requests (i.e., IT, HR, etc.).



Coordinate recycling or e-waste vendors as required.



Supervise the re-hanging of art with art consultant and client as needed.



Miscellaneous meetings and coordination not included in this list.

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50 | PROPOSAL FOR REAL ESTATE BROKER SERVICES IN WASHINGTON D.C.

Provide a projected timeline for this type of project from project kick-off through client move.

PROPOSED PROJECT TIMELINE

2024 2022 A

S

O

2023 N

D

J

F

M

A

M

J

J

A

S

O

N

D

J

Project Kick-off Development of Requirement/ Strategy Property Surveys & Tours

Ongoing

Buildings Negotiations & Analysis LOI for Finalist Property/ Schematic & Construction Plans Lease Negotiations / Plans

Sign Lease Permitting/ GC Bidding

Construction/FFE Installation

Move-in/IT testing

Flexible Move-In

SAVILLS.US | 51

Include a detailed fee schedule indicating how the fee is collected and a listing of any other costs that might be incurred outside of your firm. If you make assumptions regarding the cost of the project, please list those assumptions in the bid.

PROPOSED COMPENSATION STRUCTURE

Services Included: Savills is proposing the following services as its Base Services offering.

Savills will provide a full range of comprehensive real estate services as outlined in this proposal. As NAIC’s representative, Savills shall look to the landlord/owner of any subject property with whom you are entering into a Space Transaction for the payment of Savills’s brokerage commissions, in accordance with standard market rates outlined below.



Real estate strategy development



Occupancy planning



Workplace strategy services



Building operations due diligence



Pre-lease project management



Operating expense and real estate tax audit



Market research/analysis



Financial structuring and analysis



Site search and selection



Proposal evaluation/ short-list and final recommendations



Transaction management



Lease negotiation and documentation

Savills will receive no other remuneration and will fully disclose all compensation to NAIC, which will be documented in a separate agreement between the landlord/owner and Savills, and subject to NAIC’s prior review and approval. In the event the lease provides for a rent concession or rent allowance, the commission shall be calculated with the rent concession or rent allowance averaged over the term of the lease. Only rent concessions or rent allowances are averaged over the term. Commissions are not affected by tenant improvement or construction allowances from the landlord to the tenant. Industry Standard Office Leasing Commission – Washington D.C. • 4% of the gross rent

52 | PROPOSAL FOR REAL ESTATE BROKER SERVICES IN WASHINGTON D.C.

VALUE-ADD SERVICES Additional services may are available to NAIC on a fee basis. Savills will provide a separate fee proposal(s) when the occupancy solution, project parameters and requirements are further clarified. Such additional services may include, but are not limited to: •

Workplace Strategies



Change Management



ESG Consulting



Post-transaction Project Management Service

The Workplace Strategy services we recommend for NAIC include, but are not limited to the following. While we believe this specific bundle of services will benefit NAIC, services are available on an à la carte basis as well.

Service

Description

Project Coordination

On-going bi-weekly calls and project coordination for 8 weeks

Existing Floorplan Analysis

Fee for Service $4,000

Savills will conduct an in-depth analysis of your current floorplan to understand the current layout and metrics of your office space with detailed quantification of such metrics as collaboration seats, type and distribution of space types within the context of employee and leadership feedback.

$2,000

Deliverable: Floorplan analysis overview

Savills will facilitate collaborative sessions with leadership & key stakeholders to identify important aspects of future space High-Level Direction Setting

$4,000

with other locations.

Deliverable: Leadership Consensus Overview preparation and documentation Anonymous Employee Survey

Survey aimed at understanding future occupancy levels, job function and collaboration and support needs, no departmental segmentation.

$4,000

Deliverable: Survey analysis report Departmental Requirement Meeting

In-person Employee Focus groups Space Requirement Scenarios

One detailed conversation around specific space needs, and tactical decisions about space requirements.

$1,000

Deliverable: Progam details

Savills will facilitate in-person focus groups, to act as a vehicle to bring people into the office while engaging around the future use of the office.

Provided upon request

Deliverable: Focus group materials, and summary documentation

Creation of (3) theoretical program scenarios, that reflect different occupancy levels and strategies.

$6,000

Deliverable: Space program, and verification of departmental behaviors/ work styles and remote work

Office Furniture Consultation

spaces and technology experiences designed to support in-office and remote teams of all sizes.

$2,000

Finalize Decisions

Savills will compile our findings in a comprehensive draft recommendations report to be discussed & finalized with the leadership team.

Included

Change Communication Strategy

As the details of your future workplace become clear, we will utilize our qualitative and quantitative research to create a change management communications plan unique to you.

$5,000

Deliverable: Final Future Space Recommendation Report with a final recommendation on space usage

Deliverable: Change communications plan. Implementation and actual implementation to be completed by client

Total

$24,000

SAVILLS.US | 53

Provide three references for clients that have signed new leases for a comparable square footage requirement within the last three years.

REFERENCE #1

REFERENCE #2

REFERENCE #3

C-SPAN

Hogan Lovells

Expedia Group

Robert Kennedy Co-CEO 400 North Capitol Street, NW Washington D.C. +1 202 626 7951 [email protected]

Raj Sheth Project Manager 555 13th Street, NW Washington, D.C. +1 202 637 8680 [email protected]

Matthew Ayers Senior Director, Global Real Estate 1111 Expedia Group Way West Seattle, WA +1 425 829 6783 [email protected]

Feature Transaction 400 North Capitol Street, NW Washington D.C. 60,000-SF Lease Deal Executed: February 2022

Feature Transaction 8350 Broad Street Tysons, VA 11,000-SF Sublease Deal Executed: July 2019

Feature Transaction 660 Wynkoop Street Denver CO 14,783-SF Lease Deal Executed: May 2019

Other Projects Include: Miami, Fl - 30,000 SF

Other Projects Include: • Washington, D.C. – 9,000 SF

54 | PROPOSAL FOR REAL ESTATE BROKER SERVICES IN WASHINGTON D.C.



Cancun, Mexico – 10,000 SF



Washington D.C. – 10,000 SF



Vancouver, Canada – 24,000 SF

Provide any sample analysis or other information the bidder believes would be beneficial to the NAIC in selecting a commercial real estate broker.

Sample Financial Deliverable Below is include an example of a typical financial analysis deliverable. It is important to emphasize: our analyses are always customized to focus on our clients’ objectives and requirements. We will develop custom financial tools suited to NAIC’s unique priorities and objectives.

Sample Scenario Analysis

SAMPLE SCENARIO ANALYSIS

Sample Overview of Scenario & Analysis

SAMPLE OVERVIEW OF SCENARIO & ANALYSIS

SAVILLS.US | 55

Sample Magnitude Analysis SAMPLE MAGNITUDE ANALYSIS

POTENTIAL OWNERSHIP STRATEGIES | RISK VS. REWARD

Risk vs. Reward

Annual Expense

NNN Rent (Developer Financing)

NNN Credit Financing) NNNRent Rent(NFLPA (Jefferson Credit Financing)

NNN Rent (Credit Tenant Lease Financing) 100% Fee Simple Ownership Equity Promote on Sale True Equity Joint Venture Sale-Leaseback

High Medium Medium Low High Medium Medium

Potential Taxable Upfront Expense Liquidity/Market Gain Exposure¹ Risk Low Low Low None High Medium Medium

Medium Medium Medium Very High Medium High Very High

None None None High High High Very High

Structuring Inflexibility

Execution Risk

Lack of Ongoing Project Control

Low Medium High High High High Medium

Low Low Medium Low Medium Medium Very High

Medium Medium Medium None Medium Low Low

Administrative/ Management Burden Low Medium Low High Medium High High

Legal/Ownership Aggregate EqualExposure Weight Simple Risk Low 33.33% Low 36.11% Low 38.89% High 50.00% Medium 61.11% High 61.11% High 69.44% Risk Matrix Legend

▪ ▪



56 | PROPOSAL FOR REAL ESTATE BROKER SERVICES IN WASHINGTON D.C.

None Low Medium High Very High

Weighting 0 1 2 3 4

Decision Framework DECISION FRAMEWORK

SAMPLE BUILDING SCORECARD

Sample Building Scorecard Legend

Midtown

Gramercy

Downtown

5

Existing

550 Madison Avenue

375 Park Avenue

Midtown East 424 Fifth Avenue

441 Ninth Avenue

Hudson Yards Moynihan

1 Madison Ave.

3 WTC

Pricing

5

2

2

3

4

4

4

5

Pricing

3

5

5

4

5

5

5

5

Risk

Location

Talent

Space

Building

4 3 2 1

Timelines

5

4

5

4

4

5

5

5

Contiguous Space

4

5

3

5

5

5

5

5

Building Amenities

2

4

4

5

4

5

5

5

Design Opportunity

2

4

4

4

5

5

4

4

Existing Talent

3

4

4

5

3

5

2

2

Future Talent

2

3

3

3

5

5

5

5

Neighborhood

3

4

4

2

3

4

5

4

Travelers (Hotel / Airport)

5

5

5

4

3

3

3

5

Clients

4

5

5

4

3

3

2

2

Execution Risk

5

5

3

3

4

4

3

5

Sublease Risk

4

5

4

3

3

2

3

2

Grade (Unweighted)

3.6

4.2

3.9

3.8

3.9

4.2

3.9

4.2

Grade (Weighted)

3.6

4.2

3.9

3.8

3.9

4.2

3.9

4.2

SAVILLS.US | 57

Return signed Conflict of Interest (Attachment 2) and Terms and Conditions (Attachment 3).

Attachment 2

NAIC CONFLICT OF INTEREST FORM FOR RETENTION OF CONSULTANTS OR PURCHASES SUBJECT TO BID

Any Entity that desires to contract with the NAIC must complete this form, including vendors, consultants and purchasers of goods or services. All potential conflicts must be disclosed and approved before the contract execution. Savills Inc. (“Entity”) did not provide gifts, favors, membership points or any other benefits to any employee or representative of the NAIC to affect the bidding and selection process for this contract.

CERTIFICATION



Entity will not provide or receive gifts, favors, membership points or any other benefits to any employee or representative of the NAIC in connection with the negotiation or implementation of this contract.



Entity owners, principals and employees negotiating or implementing this contract on behalf of Entity are not former NAIC employees unless disclosed below.



Entity owners, principals and employees negotiating or implementing this contract on behalf of Entity are not immediate family members of NAIC employees unless disclosed below.

The signatory below is a duly authorized representative of Entity and hereby certifies to the authenticity and veracity of this disclosure.

Authorized Entity Signature

Date

May 9, 2022

Richard P. Rome, Savills

Print Name & Company Name CLOSURE OF POTENTIAL CONFLICT

DISCLOSURE

NAIC Executive Approval NAIC 12/09 58 | PROPOSAL FOR REAL ESTATE BROKER SERVICES IN WASHINGTON D.C.

Date

Attachment 3

STANDARD TERMS AND CONDITIONS

for NATIONAL ASSOCIATION OF INSURANCE COMMISSIONERS PURCHASE ORDERS FOR SERVICES As used herein, “Seller” means the person, firm, or corporation to whom this Purchase Order is issued; “Buyer” means the National Association of Insurance Commissioners, a nonprofit Delaware corporation. 1.

Acceptance of Terms and Conditions. Seller agrees to perform the services (“Services”) described in any purchase order (“Purchase Order”) in accordance with these Terms and Conditions. Upon acceptance of a Purchase Order or upon commencement of Services, Seller shall be bound by these Terms and Conditions and all provisions set forth on the face of any applicable Purchase Order, whether Seller signs orotherwise acknowledges these Terms & Conditions or the Purchase Order, unless Seller objects to such Terms and Conditions in writing prior to commencing Services.

2.

Revocable. This writing does not constitute a firm offer and may be revoked at any time prior to acceptance.

3.

No modification. No agreement or other understanding in any way altering the terms, prices or conditions of the applicable Purchase Order or these Terms and Conditions shall be binding upon Buyer unless made in writing and signed by Buyer’s duly authorized representative.

4.

Termination. Buyer may immediately terminate the Purchase Order upon written notice to Seller if Seller fails to perform or otherwise breaches these Terms and Conditions, files a petition in bankruptcy, becomes insolvent, or dissolves. Buyer may terminate the Purchase Order for any other reason upon thirty (30) days’ written notice to Seller. Upon receipt of notice of termination, Seller shall cease to provide Goods and/or perform Services pursuant to the Purchase Order. In the event of termination, Buyer shall be liable

to Seller only for those Services satisfactorily performed before the date of termination, less appropriate offsets. Buyer shall not be subject to any charges or other fees as a result of such cancellation. Seller may terminate this Agreement upon written notice to Buyer if Buyer fails to pay Seller within sixty (60) days after Seller notified Buyer in writing that payment is past due and that it intends to terminate the Purchase Order. 5.

Warranty of Services. Seller represents and warrants that all Services shall be completed in a professional, workmanlike manner, with the degree of skill and care that is required by current, good, and sound professional procedures.Further, Seller warrants that the Services shall be completed in accordance with applicable specifications. Seller represents and warrants that the performance of Services hereunder will not conflict with, or be prohibited in any way by any other agreement or statutory restriction to which Seller is bound.

6.

Seller’s Indemnification. Seller shall indemnify, hold harmless, and at Buyer’s request, defend Buyer, its officers, directors, agents and employees, against all claims, liabilities, damages, losses and expenses, including attorneys’ fees and costs of suit arising out of or in any way connected with any claim by a third party against Buyer alleging that the Services infringe a patent, copyright, trademark, trade secret or other proprietary right of third party. Seller shall not settle any such suit or claim without Buyer’s prior written consent. Seller

SAVILLS.US | 59

deliver Goods as provided if caused by circumstances beyond Seller’s control which make such performance commercially impractical including, but not limited to, acts of God, fire, flood, acts of war, government action, accident, labor difficulties or shortage, or the inability to obtain materials, equipment or transportation.

shall also indemnify and hold harmless Buyer from any injury to person or property arising out of or caused by Seller’s performance of the Purchase Order. Seller agrees to pay or reimburse all costs that may be incurred by Buyer in enforcing this indemnity provision, including attorneys’ fees. 7.

Compliance with Laws. Seller shall comply with all laws and regulations of federal, state and local governments, including without limitation, laws and regulations dealing with fair labor standards, civil rights, and public contracts. Seller further warrants that all Services performed pursuant to the Purchase Order have been produced or performed in compliance with such laws and regulations and Seller agrees to indemnify Buyer for any liability resulting from such noncompliance by the Seller.

8.

Price. The price to be paid by the Buyer shall be the price contained in Seller’s bid and/or the price stated on the face of the Purchase Order whichever is less. Seller represents the price contained in Seller’s bid is no higher than Seller’s current prices on orders by others for similar products or services under similar or like conditions and methods of purchase.

9.

10.

Invoices. Seller shall submit invoices on each Purchase Order after each delivery. Buyer shall not be charged sales tax and shall furnish a tax exemption certificate upon request. Discounts will be taken from the date of acceptance of services or date the invoice is received by Buyer whichever is later. Buyer shall retain the right of offset. Force Majeure. Buyer shall not be liable for any failure to perform including failure to: (1) accept performance of Services, or, (2) take delivery of the Goods as provided if caused by circumstances beyond Buyer’s control which make such performance commercially impracticalincluding, but not limited to, acts of God, fire, flood, acts of war, government action, accident, labor difficulties or shortage, or the inability to obtain materials, equipment or transportation.

11.

Insurance. Seller shall be solely responsible for maintaining adequate auto, workers’ compensation, unemployment compensation, disability, liability and other applicable insurance, as is required by law or as is the common practice in Seller’s trade or business, whichever affords greater coverage. Seller shall carry Comprehensive General Liability coverage and Umbrella or Excess Liability coverage with minimum limits of $1,000,000 per occurrence and $2,000,000 in the aggregate for property damage and bodily injury. Upon request, Seller shall provide Buyer with certificates of insurance evidencing adequate coverage naming the Buyer as additional insured.

12.

Limitation of Liability. IN NO EVENT SHALL BUYER BE LIABLE TO SELLER OR SELLER’S AGENTS, OR ANY THIRD PARTY FOR ANY INCIDENTAL, INDIRECT, SPECIAL, OR CONSE-QUENTIAL DAMAGES ARISING OUT OF, OR IN CONNECTION WITH, THIS AGREEMENT, WHETHER OR NOT BUYER WAS ADVISED OF THE POSSIBILITY OF SUCH DAMAGE.

13.

Confidentiality. In the event Seller gains written or oral confidential information of or from the Buyer, Seller agrees not to reveal to anyone or make use of such knowledge and information at any time for any purposes except as necessary in the course and scope of provision of Goods or performance of Services specified hereunder. Upon termination of the Purchase Order, Seller agrees to deliver to Buyer all such confidential information or work product belonging to Buyer.

14.

Assignability. Seller shall not assign or subcontract this Purchase Order or any of its rights or obligations hereunder without the prior written consent of Buyer. Any assignment or

Seller shall not be liable for any failure to perform including failure to: (1) provide Services, or (2) 3 60 | PROPOSAL FOR REAL ESTATE BROKER SERVICES IN WASHINGTON D.C.

and disputes shall be governed by, the laws of the State of Missouri.

transfer without such written consent shall be null and void. 15.

Publicity. Seller shall not use Buyer’s name in any form or attribution in connection with any solicitation, publicity, advertising, endorsement or other promotion.

16.

Survivability. Any obligations and duties, which by their nature extend beyond the expiration or termination of this Purchase Order shall survive the expiration or termination hereof.

17.

Choice of Law. This Purchase Order shall be construed in accordance with,

18.

Severability. If any provision of this Purchase Order shall be deemed to be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

NAIC 8/2012

*********************************************************************************************

Do you agree to the NAIC Terms & Conditions? YES

NO

May 9, 2022 Signature

Date

Signature

Date

Please Sign one. If NO, please provide your firm’s applicable Terms and Conditions for NAIC to review. *********************************************************************************************

4 SAVILLS.US | 61

Contacts Richard P. Rome Vice Chairman +1 202 624 8518 [email protected] Mordecai Scott Managing Director +1 202 629 5004 [email protected] Alexandra deVilliers Corporate Managing Director +1 202 624 8552 [email protected]

savills.us Disclaimer: The material in this presentation has been prepared solely for informational 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 Savills’ prior written consent. Neither this presentation nor any part of it shall form the basis of, or be relied upon in connection with, any offer or transaction, or act as an inducement to enter into any contract or commitment whatsoever. NO WARRANTY OR REPRESENTATION, EXPRESS OR IMPLIED, IS GIVEN AS TO THE ACCURACY OR COMPLETENESS OF THE INFORMATION CONTAINED HEREIN AND SAVILLS IS UNDER NO OBLIGATION TO SUBSEQUENTLY CORRECT IT IN THE EVENT OF ERRORS.