June, R. CRAIG COPPOLA CCIM, CRE, SIOR Founding Principal. ANDREW S. CHENEY CCIM, SIOR Principal. WILLIAM A. BLAKE SIOR Founding Principal

Transcription

1 June, 2016 LEASING PROPOSAL PREPARED FOR R. CRAIG COPPOLA CCIM, CRE, SIOR Founding Principal ANDREW S. CHENEY CCIM, SIOR Principal WILLIAM A. BLAKE SIOR Founding Principal COLTON M. TRAUTER Principal R. GREGG KAFKA CCIM Associate JIMMY A. CORNISH Office Division MICHAEL MARSH Office Division

2 TABLE OF CONTENTS LEE & ASSOCIATES ARIZONA OVERVIEW» LEE OVERVIEW» CASE STUDIES PROJECT TEAM» TEAM ORGANIZATIONAL CHART» RESUMES APPROACH & SCHEDULE» MARKETING TIMELINE» LEASE RECOMMENDATIONS MARKET DATA» COMPS» DIRECT COMPETITION» LEE RESEARCH CAPABILITIES MARKETING CAPABILITIES» STRATEGIC MARKETING PLAN» MARKETING TOOLS POTENTIAL CHALLENGES & OPPORTUNITIES WHY LEE COMPENSATION PHOENIX MARKET OVERVIEW

3 LEE & ASSOCIATES ARIZONA OVERVIEW

4 LEE & ASSOCIATES ARIZONA OVERVIEW LOCAL COMPANY OVERVIEW Lee & Associates is a full service commercial real estate brokerage firm which, in recent years, has become a major influence in the commercial real estate industry. Lee & Associates Arizona has been serving clients since 1991, growing to become one of the preeminent commercial real estate firms in the Southwest. Having evolved from an early user-oriented emphasis, clients now include many major developers as well as the already established corporate base. The Lee & Associates Arizona office has earned the respect and reputation within the business community for extensive market knowledge and providing superior services to its clients. With 54 offices in the nation, the Lee & Associates group of independently owned and operated companies is regarded as the largest regional commercial real estate services provider in the United States, and the fourth largest fullservice commercial real estate organization overall. PHOENIX OFFICE IS LOCALLY OWNED AND OVER 80% OF OUR AGENTS ARE SHAREHOLDERS. FOUNDED IN PHOENIX IN 1991 LEE & ASSOCIATES ARIZONA: The largest regional commercial real estate firm in the West. Has established itself as one of the preeminent commercial real estate brokerage firms in the Southwest. Was the 11th office in the Lee system, which today features 54 offices across the nation. THE PHOENIX OFFICE HAS: 38 BROKERS = RESEARCHERS RUNNERS AND ADMINISTRATIVE ASSISTANTS AVERAGE YEARS OF EXPERIENCE PER BROKER OVER TRANSACTIONS PER YEAR THE MOST EFFICIENTLY RUN BROKERAGE IN THE STATE.

5 LEE & ASSOCIATES ARIZONA OVERVIEW CANADA WEST $10 BILLION TRANSACTION VOLUME OFFICES ACROSS THE NATION THE POWER OF THE LEE NETWORK SOUTHWEST MIDWEST 800 AGENTS AND GROWING EAST SOUTH NATIONAL KEY FOCUSES: OFFICE INDUSTRIAL RETAIL 500 SHARE HOLDERS 11,300 TRANSACTIONS

6 LEE & ASSOCIATES ARIZONA OVERVIEW ORIGIN & PHILOSOPHY In 1979, founder Bill Lee established the first Lee & Associates office, driven by the unique idea to turn real estate brokers into company owners or shareholders. Bill Lee s guiding philosophy was that clients interests would be best served by a collective team effort from experienced sales agents who had an ownership stake in the privatelyheld organization, earned through exceptional performance and ethical practice. Because Lee & Associates Arizona is uniquely focused on the needs of corporate real estate, we have developed an extensive array of services to benefit our corporate clients. Lee & Associates has offices throughout the nation to assist our clients in the critical areas of corporate real estate. We tailor our services to fit our clients needs. LEE ADVANTAGE Fast Client Results Experience Counts Long-Term Relationship In-Depth Market Knowledge Business Stability Strong National Affiliations BENEFITS Our entire process is an organized approach to ensure the best possible economic and legal terms at the least amount of risk and time, allowing us to be in sync at all times. The result is a smooth and efficient transaction and well-leased properties for Velocis.

7 CASE STUDIES Pinnacle in Kierland I-IV N. Scottsdale Rd. Scottsdale, AZ Property Size: 479,000 SF Occupancy: 96.6% Lease Rates: Landlord: Comments: $ $33.00/SF/Full Service Furst Properties LLC» Maintained over 90% Leased through great recession» Leased all 4 buildings to over 90% within first year and half Reference: Tammy Gibbons \\\ Furst Properties LLC \\\ Significant Transactions: Capital Group Northern Trust Morgan Stanley BMO Harris New York Life 106,000 SF 41,000 SF 43,000 SF 17,000 SF 22,000 SF SkySong , 1375 and 1475 N. Scottsdale Road, Scottsdale, AZ Property Size: Occupancy: 98% Lease Rates: Landlord: Comments: 450,000 SF $ $29.00/SF/Full Service Holualoa Companies/Plaza Co.» Took over Skysong 1 & 2 at 50% Leased and brought it to over 95% leased in a bad market» Pre-leased Skysong 3 to Workiva & leased to over 90% occupancy before completion of construction Reference: Stan Shafer \\\ Holualoa \\\ Significant Transactions: IO Data Groupon Theranos Workovia LiveOps Sharron Harper \\\ Plaza Co. \\\ ,000 SF 16,000 SF 23,000 SF 34,000 SF 10,000 SF

8 CASE STUDIES RAINTREE CORPORATE CENTER N. Pima Rd. / E. Raintree Dr., Scottsdale, AZ Property Size: 633,964 SF Occupancy: 85% Lease Rates: $26/SF - $27.50/SF Full Service Landlord: Cavan Real Estate Investments Comments:» Raintree Corporate Center is a Class A office complex that provides easy access and excellent visibility just off the 101 freeway.» Direct access to Loop 101 freeway via full diamond interchange at Raintree Dr» Multi-level parking garage with 5:1000 parking ratio» Prominent freeway signage off Loop 101» Within 2 miles of 50 restaurants and numerous retail amenities» Leased 4 Phase Business Park to 100% Reference: Dave Cavan \\\ Cavan Real Estate Investments \\\ Significant Transactions: Arizona Republic 18,000 SF Pulte Homes 150,000 SF AmeriFirst Financial 11,926 SF Cylon 35,151 SF Chemical Lime 11,000 SF Alliance Defence Fund 19,500 SF PIMA CENTER NWC Via de Ventura & 101 Freeway, Scottsdale, AZ Property Size: Occupancy: 94% Lease Rates: Landlord: Comments: 583,000 SF $23.00/SF - $26.50/SF Full Service MainSpring Capital» Multi-phase office park located within Salt River Pima Indian Reservation» Multiple product types currently being marketed» Leased over 580,000 SF to 94% Reference: Mills Brown \\\ Mainspring Capital \\\ Significant Transactions: First American Title Insurance Meritas Family of Schools Rural Metro Nationwide Insurance Company Mutual of Omaha Bank P.B Bell Companies 93,753 SF 81,734 SF 54,338 SF 46,413 SF 35,000 SF 20,322 SF Safeguard Security & Communications Rossmar & Graham Pierce Eislen, Inc. Yardi Systems, Inc. New Horizons Learning Center Mainstream Energy 20,300 SF 18,512 SF 15,906 SF 15,906 SF 12,344 SF 12,012 SF

9 CASE STUDIES DESERT RIDGE CORPORATE CENTER I-II & N. Tatum Blvd., Phoenix, AZ Property Size: 275,208 SF Occupancy: 93% Lease Rates: $27.50/SF/Full Service Developer: Ryan Companies Comments:» Leased two phase office development to 93%, pushed rates» Sold property twice (most recently to Regent Properties) Reference: Matthew Benbassat \\\ Regent \\\ Significant Transactions: First American Financial Corp. 42,866 SF C.H. Robinson Worldwide Republic Services 35,034 SF Regus AT&T 35,034 SF Vantage Retirement Plans Humana 34,980 SF DuCharme, McMillen & Associates, Inc. Travelers Indemnity Co. 31,085 SF National Residential Mortgage K. Hovanian Companies 21,885 SF 16,061 SF 12,338 SF 11,061 SF 11,040 SF 11,019 SF HAYDEN FERRY LAKESIDE 2 60 E. Rio Salado Parkway, Tempe, AZ Property Size: Occupancy: Developer: Comments: 300,000 SF 82% at time of sale Suncor Development Company» We took over this project at 33% occupancy, leased it to 82% occupancy, and sold it prior to The Great Recession. Reference: Randy Levin \\\ Former Vice President, Suncor \\\ Significant Transactions: Fidelity National Title Lifelock Davis 33,000 SF 50,000 SF 23,000 SF

10 CASE STUDIES CAMELBACK SQUARE 6991 E. Camelback Rd., Scottsdale, AZ Property Size: 174,917 SF Occupancy: 96.1% Lease Rates: Landlord: Comments: $27.00/SF - $28.00/SF/Full Service Velocis» We took over this project at 65% leased. Within 12 months, we leased it up to over 96% occupied Reference: Bob Kruzel \\\ Director of Asset Management \\\ Significant Transactions: Zoc Doc 30,000 SF Digital Airstrike 12,000 SF BILTMORE COMMERCE CENTER 3200 E. Camelback Rd., Phoenix, AZ Property Size: 259,730 SF Occupancy: 96.7% Lease Rates: Landlord: Comments: $32/SF Full Service Lincoln Property Company/Oaktree Capital Management» Took over agent at 73% leased. Within 12 months. We leased it up to 96.7% occupied Reference: David Krumwiede \\\ Lincoln Property Company \\\ Significant Transactions:

11 PROJECT TEAM

12 PROJECT TEAM OUR TEAM ORGANIZATIONAL CHART Team Organizational Chart Colton Trauter Principal Bill Blake SIOR Principal Craig Coppola CRE, CCIM, SIOR Principal Andrew Cheney CCIM, SIOR Principal Gregg Kafka CCIM Associate Jimmy Cornish Office Properties Chelsea Clifton Director of Operations Hannah Miller Marketing and Project Coordinator Michael Marsh Office Properties Lee & Associates Research Department Peter Ovens-Brown Sr. Graphic Designer Thomas Stouffer Jr. Graphic Designer Chris McChesney Sr. Researcher Matt DePinto Sr. Research Analyst Nick Barber Research Associate Leia Devine Administrative Assistant

13 PROJECT TEAM BILL BLAKE, SIOR was one of the founding members that started the Lee & Associates Arizona Office Division in October Prior to Lee & Associates, Bill was a member of Grubb & Ellis beginning a career that spans over 25 years. Bill has leased and sold over 20,000,000 square feet of commercial space, involving more than 1,200 transactions. Bill is also a member of the prestigious Society of Industrial and Office Realtors (SIOR), a designation reserved for the top echelon of office and industrial agents. During the past sixteen (16) years, Bill has been one of the Top 5 performers at the Lee & Associates Arizona office for all but one year. In 2009, Bill was the number one producer in the Phoenix office. R. CRAIG COPPOLA, CCIM, CRE, SIOR was one of the Founding Principals that started the Lee & Associates Arizona Office Division. A true real estate professional, Coppola has completed over 3,500 lease and sale transactions totaling more than 25,000,000 square feet leased or sold. Coppola has continually proved to be a top producer and has earned a reputation for being one of the hardest working brokers in his 30+ years in the industry. Coppola is one of only forty commercial real estate professionals worldwide to have the following three industry designations: Certified Commercial Investment Member (CCIM), Counselors of Real Estate (CRE), and Society of Industrial and Office Realtors (SIOR). Craig has been awarded NAIOP Office Broker of the Year, our market s highest honor, 6 out of the last 15 years. Finally Craig received his MBA from Arizona State University. Lee & Associates helped us jump from 50% occupancy to 98% occupancy in a severe economic down turn. Their service and expertise have been crucial for our success. Todd Olson, Asset Manager, USAA Real Estate

14 PROJECT TEAM COLTON TRAUTER has been involved in all aspects of Commercial Office Real Estate over his 10+ year career. With a primary focus on leasing and land development. Colton s extensive knowledge of the marketplace allows him to effectively cater to each clients needs and advise in the most accurate way possible. Since joining Lee & Associates in 2005, Colton has been involved in over 400 sale and lease transactions totaling over 4 million square feet. Colton s clients benefit from his extensive background in structuring and negotiating commercial leases and strategic planning. ANDREW CHENEY, CCIM, SIOR will serve as the primary contact and has extensive experience leasing some of the Valley s most dynamic Class A properties including Hayden Ferry Lakeside, SkySong, Pima Center, The Pinnacle in Kierland and Desert Ridge Corporate Center. His deep understanding of the changing marketplace allows a 12-year veteran to provide office leasing expertise to both his landlords and tenants alike. Cheney earned his Certified Commercial Investment Member (CCIM) designation in 2007, became a Principal title at Lee & Associates in 2009, and gained his Society of Industrial and Office Realtors (SIOR) designation in His resume includes 800 transactions, 4 million square feet and 1 billion in consideration. Cheney also serves on the current NAIOP Arizona chapter board. Andrew earned the 40 under 40 award for Phoenix Business Journals top professionals under the age of 40 in Additionally, he graduated from the FBI Citizens Academy and now serves as an Alumni Association Member. GREGG KAFKA, CCIM has gained excellent leasing experience in the past 48 months helping negotiate over 150 transactions. He has an extensive 8-year construction background from experience with Opus and Macerich. Gregg will assist with negotiating, cold calling, marketing, touring, research analysis and all essential listing support. Gregg will assist in negotiating spec suite deals and providing valuable market data.

15 PROJECT TEAM SPECIALIZING IN: OFFICE BROKERAGE William Blake SIOR Founding Principal Office: Cell: Fax: E. Camelback Rd. Suite 100 Phoenix, AZ PARTIAL CLIENT LIST Arizona State University Bank of America Choice Hotels Ryan Companies Lincoln Property Company DMB Motorola Principal Group PROFILE Mr. Blake is a licensed Arizona Real Estate Broker and a graduate of Arizona State University. He is an active member of SIOR. Mr. Blake specializes in the representation of landlords and tenants, specializing in the leasing and sales of office properties in the metropolitan Phoenix real estate market. Mr. Blake s extensive knowledge of the Metropolitan Phoenix market is complemented by thorough analysis and marketing skills involving tenant relocation, tenant expansion, lease negotiations, market analysis and property marketing. These qualities, along with a strong work ethic, have enabled him to become a respected presence within the market. CAREER SUMMARY As a commercial Real Estate Advisor for Lee & Associates, Mr. Blake has represented the interests of multiple landlords, developers, and tenants within Metropolitan Phoenix (or Maricopa County). The most noted of which include: Motorola Regional HQ QBE First Insurance Pulte Homes Regional HQ JDA Software US Foods Regional 350,000 SF 183,000 SF 150,000 SF 135,000SF HQ 133,000 SF Mr. Blake has completed over 1,400 transactions totaling over 24 million square feet valued in excess of $900 million. EXPERIENCE 1991 to Present: Lee & Associates / Founding Principal 1989 to1991: 1987 to1989: 1985 to 1987: ACHIEVEMENTS Grubb & Ellis CBS Property Services Del E Webb Development Top Broker, Lee & Associates Arizona 2009 Top five producer, Lee & Associates Arizona Lee & Associates Board Member CoStar Power Broker of the Year 2004, 2005, 2007, , and 2013 EDUCATION Bachelor of Science, Finance Arizona State University, Tempe AZ COMMUNITY INVOLVEMENT Boys & Girls of Scottsdale Not My Kid YMCA of Scottsdale

16 PROJECT TEAM SPECIALIZING IN: OFFICE BROKERAGE R. Craig Coppola CRE, CCIM, SIOR, Founding Principal Office: Cell: Fax: E. Camelback Rd. Suite 100 Phoenix, AZ PARTIAL CLIENT LIST American Family Insurance Piedmont Office Realty Trust HDR Engineering JDA Software Morgan Stanley Motorola US Bank Corp. USAA Real Estate Company PROFILE Mr. Coppola is the top producing Office Broker in Lee & Associates 35 year history (50 offices, over 800 brokers). He is also one of the eight Founding Principals of Lee & Associates Arizona. He holds the three most coveted designations in the industry: CCIM, CRE, and SIOR. Mr. Coppola specializes in the representation of landlords and tenants in the leasing and sale of office properties. Mr. Coppola has almost three decades of leasing and sale experience. He has been a 20 time top producer at Lee & Associates, 6 time NAIOP Office Broker of the year, and an additional 16-time finalist for NAIOP Office Broker of the Year. CAREER SUMMARY Mr. Coppola has completed over 3,500 transactions totaling over 13 million square feet, valued in excess of $3.5 billion. As the top Commercial Real Estate Advisor for Lee & Associates, Mr. Coppola has represented the interests of multiple landlords, developers and tenants across the United States. EXPERIENCE 1991 to Present: Lee & Associates / Founding Principal 1984 to 1991: 1983 to 1984: Grubb & Ellis / Senior Marketing Consultant Professional Baseball Player (Minnesota Twins Org.) ACHIEVEMENTS 20 Time Top Producer Lee & Associates Arizona 6 Time NAIOP Office Broker of the Year Who s Who of the Decade 2010 AZ Business Journal NAIOP National Chapter President of the Year 25 years of service and dedication to the CCIM Institute Holds top 3 Industry designations: CCIM, CRE, SIOR EDUCATION MBA - Arizona State University, Tempe AZ, 1992 Bachelor of Science, Finance Nicholls State University, 1983 Associates of Science Yavapai College, 1981 COMMUNITY INVOLVEMENT Arizona Chamber of Commerce Board of Directors Banner Health Foundation Board Member Xavier College Preparatory Board of Trustees United Way Tocqueville Society Chairman MD Anderson Banner Capital Campaign

17 PROJECT TEAM Colton Trauter Principal Office: Cell: Fax: E. Camelback Rd. Suite 100 Phoenix, AZ PARTIAL CLIENT LIST Regent Properties Desert Troon Companies Ryan Companies 360 Enterprises it1 Source American Tower Lincoln Property Company Longevity Alliance WJ Bradley Mortgage SPECIALIZING IN: OFFICE BROKERAGE PROFILE Mr. Trauter is a licensed Arizona Real Estate Broker and a graduate of Arizona State University. He is an active member of NAIOP and Executive Council Charities. Mr. Trauter specializes in the representation of landlords and tenants specializing in the leasing and sales of office space in the Metropolitan Phoenix real estate market. Mr. Trauter s extensive knowledge of the Metropolitan Phoenix market is complemented by thorough analysis and marketing skills involving lease negotiations, market analysis and property marketing. These qualities, along with a strong work ethic, have enabled him to become a respected presence within the market. CAREER SUMMARY As a Commercial Real Estate Advisor for Lee & Associates, Mr. Trauter has represented the interests of multiple landlords, developers and tenants within Metropolitan Phoenix (or Maricopa County). The most noted of which include: Desert Ridge Corporate Center River Corporate Center 2700 Corporate Center Pima Center Phoenix Peak 270,000 SF 133,000 SF 183,000 SF 94,000 SF 90,000 SF Mr. Trauter has completed over 400 transactions totaling over 4 million square feet valued in excess of $350 million. EXPERIENCE 2003 to 2005: 2005 to Present: ACHIEVEMENTS 2009 CoStar Power Broker 2011 CoStar Power Broker 2013 CoStar Power Broker Dollar Tree Stores, Inc. Corporate Real Estate Lee & Associates / Principal Sold/Leased over 400 transactions Sold/Leased over 4 million SF EDUCATION Bachelor of Science, WP Carey School of Business Arizona State University, Tempe AZ COMMUNITY INVOLVEMENT Active Member of NAIOP Active Member of Executive Council Charities

18 PROJECT TEAM Andrew Cheney CCIM, SIOR Principal Office: Cell: Fax: E. Camelback Rd. Suite 100 Phoenix, AZ PARTIAL CLIENT LIST Aegon USA USAA Insurance HDR Engineering JDA Software Group US Bank Motorola, Inc. Parkway REIT Furst Properties SPECIALIZING IN: OFFICE BROKERAGE PROFILE Mr. Cheney specializes in the representation of landlords and tenants, focusing on the leasing and sales of office properties in the metropolitan Phoenix real estate market. A second generation Arizonan, Mr. Cheney s extensive experience includes representing national tenants such as Motorola, JDA Software and HDR Engineering. Mr. Cheney is deeply committed to the industry and takes active leadership roles within elite organizations such as CCIM and NAIOP. He is one of 17 professionals in Arizona who hold both CCIM and SIOR designations. CAREER SUMMARY As a commercial Real Estate Advisor for Lee & Associates, Mr. Cheney has represented the interests of multiple landlords, developers, and tenants within Metropolitan Phoenix (or Maricopa County). The most noted of which include: SkySong (USAA) The Pinnacle in Kierland (Predmont) Thistle Landing (Tristane) Desert Ridge Corporate Center (OPERS) Deer Valley, Office Plaza (UBS) 133,000 SF 450,000 SF 65,000 SF 270,000 SF 200,000 SF Mr. Cheney has completed over 800 transactions totaling over 8 million square feet valued in excess of $1 billion. EXPERIENCE 2003 to Present: 2000 to 2003: ACHIEVEMENTS Current NAIOP Board Member Lee & Associates / Principal ATP Professional Tennis Tour 2011 NAIOP National Developing Leader of the Year 2010 NAIOP Emerging Broker of the Year Completed CCIM and SIOR designations, one of only 17 in Arizona Lee & Associates Board Member Phoenix Bis Journal 40 under 40 class of 2013 EDUCATION Bachelor of Science in Civil Engineering University of California at Irvine COMMUNITY INVOLVEMENT Former world ranked professional tennis player Four-time U.S. Men s Open Division Father/Son Doubles Champion Formerly ranked #88 in the United States, Men s Tennis Association Guerrant Foundation Board Member (Microcredit Lending) FBI Citizens Academy Gradute and Alumni Association member

19 PROJECT TEAM Gregg Kafka CCIM Associate Office: Cell: Fax: E. Camelback Rd. Suite 100 Phoenix, AZ PARTIAL CLIENT LIST Aegon USA Flexprint Lincoln Properties Mainspring Capital Mark IV Capital Piedmont Office Realty Trust State Farm Insurance SPECIALIZING IN: OFFICE BROKERAGE PROFILE Mr. Kafka specializes in the representation of landlords and tenants, specializing in the leasing and sales of office properties in the metropolitan Phoenix real estate market. Mr. Kafka s extensive knowledge of the Metropolitan Phoenix market is complemented by thorough analysis and marketing skills involving tenant relocation, tenant expansion, lease negotiations, market analysis and property marketing. These qualities, along with a strong work ethic, have enabled him to become a respected presence within the market. CAREER SUMMARY As a commercial Real Estate Advisor for Lee & Associates, Mr. Kafka has represented the interests of multiple landlords, developers, and tenants within Metropolitan Phoenix (or Maricopa County). The most noted of which include: 5050 North 40th Street Arrowhead Business Park ASU Research Park Desert Ridge Corporate Center 71,000 SF 47,000 SF 50,000 SF 270,000 SF Mr. Kafka has completed over 150 transactions totaling over 1 million square feet valued in excess of $165 million. EDUCATION Bachelor of Science in Construction Management Arizona State University COMMUNITY INVOLVEMENT Toastmaster International NAIOP Centers of Influence

20 PROJECT TEAM VALUE-ADDED UNIQUE TO COPPOLA \\\ BLAKE \\\ TRAUTER \\\ CHENEY \\\ KAFKA Comprehensive knowledge of the Camelback Corridor submarket. Intimate understanding of the changing dynamics in the Camelback Corridor market. Extensive transaction history in the market with users of all sizes. Proven ability to create and sustain velocity. Access to key relationships in the marketplace. Senior level career brokers producing consistently high levels of results. Significant Class A leasing experience. Unparalleled expertise and education. Outstanding rapport within the brokerage community. Knowledge and coverage of the breadth and depth of the market.

21 APPROACH & SCHEDULE

22 a development of ±125,000-square-foot 3-story Class A office building Superb freeway visibility to over 165,000 cars per day on Loop ,760-square-foot efficient floor plates Access to two full-diamond interchanges 6:1000 parking expandable up to 8:1000 with added parking deck Abundant restaurant and entertainment amenities within one-mile radius 16 clear heights on 1st floor 14 clear heights on floors 2 & 3. Minutes from Sky Harbor, Old Town Scottsdale, Tempe, and North Scottsdale Potential campus opportunity 3200 EAST CAMELBACK ROAD, SUITE 100 PHOENIX, ARIZONA FAX for further information, please contact BILL BLAKE bblake@leearizona.com CRAIG COPPOLA, CCIM, CRE, SIOR ccoppola@leearizona.com ANDREW CHENEY, CCIM, SIOR acheney@leearizona.com COLTON TRAUTER ctrauter@leearizona.com GREGG KAFKA gkafka@leearizona.com exclusively represented by MARKETING TIMELINE EXECUTE LISTING CONTRACT FORMAL ANNOUNCEMENT PROCESS Announcement To Brokerage Community Formal Press Release To Media Eblast to Brokerage Community Targeted Announcement Ads CoStar Announcement FINALIZE PROPOSAL TEMPLATE INSTALL LEASING SIGNAGE MEDIA/PR Press Releases Community Relations CUSTOM HARD COPY BROCHURE Property/Building Info Photos/Floor Plans/Spec Plans/Finishes Draft & Approval Process Amenities Map BI-MONTHLY TEAM STRATEGY REVIEW & UPDATE Surrounding Market Activity Current Comps TENANT MARKETING Canvassing Program for Tenant Prospects Monitor & Track Qualified Tenant Prospects Targeted Campaign BROKER MARKETING E-blast to Entire Brokerage Community Presentations Directed Towards Specific Brokerage Firms Canvassing/Cold Calling Mailers & Eblast Campaigns BI-MONTHLY TEAM STRATEGY REVIEW & UPDATE Review/Present Comps in Surrounding Market MEDIA/PR Continued Press Releases Community Relations COORDINATE WEBSITE MARKETING Continued Web Marketing MONTH 1 MONTH 2 MONTH 3 MARKETING COLLATERAL Develop Spec Suite Layouts/Renderings Establish Ongoing Advertising Schedule - Desktop Publishing Mailers/Scheduled Mailers/Eblasts Develop Prospect Follow-up s - Inputting & Tracking Database Info/Prospects Amenities Map Highlighting Key Surrounding Markets Install Leasing Sign Physical & Digital Marketing Material 360 VIRTUAL TOURS AVAILABLE ONLINE Renderings/Web Development COORDINATE WEBSITE MARKETING MARKETING COLLATERAL Ongoing Blast Campaign to entire Brokerage Community Lee & Associates Property Page Comps & New Transaction Announcement Set Up Broker Progressive Lunches/Dinners Coordinate Website Marketing Campaign DIGITAL BROCHURE & WEBSITE PIMA CENTER PARKWAY NORTH OF VIA DE VENTURA SCOTTSDALE, ARIZONA Up to 8:1000 Parking DEVELOP ROAD SHOW BOARDS Create Ingress/Egress Maps with Surrounding Amenities

23 LEASE RECOMMENDATION RECOMMENDED ECONOMIC TERMS / LEASING VELOCITY Rent Structure: Offering rates of $ $33.00/SF Full Service Initially with a focus to raise rates to $34.00 within 24 months. TERM: We recommend three to five year deals in this market. For a creditworthy tenant, shorter terms or cancellation rights may be pursued. OPERATING EXPENSES: Base Year TENANT IMPROVEMENTS: $ $15.00, depending on term length and credit worthiness of tenant PARKING CHARGES: $ $55.00 per stall, per month. Depending on market conditions. OTHER CONCESSIONS: We should be prepared to offer free rent, usually one month per year, outside the term. Additional free rent, half rent can be offered to maintian higher lease rates. LEASE COMMISSIONS: Please see Fee Structure and Terms of Agency section.

24 MARKET DATA

25 LEASE COMPS Building Name Submarket Tenant Trans. Date Size Term (Mos.) Rate Structure T.I. Lease Type Parking Ratio Comments Address Landlord Start Date Effective Rate Expenses Covered 5090 N. 40th St n. 40th St. Camelback Corridor Kudelski, SA Phx SFC Holding, LLC /01/ ,191 SF 65 Mos. Mos. 1-5 $0.00 Mos $28.00 Mos $28.50 Mos $29.00 Mos $29.50 Mos $30.00 $45.00 rsf FSG Base Year 2016 Reserved: $75.00/mo Unreserved: $55.00/mo Transaction Type: New Lease Space Condition: Shell Eff. Rate: $26.77 Camelback Esplanade III 2415 E. Camelback Rd. Camelback Corridor The Pederson Group CH Realty VII/O Phoenix Esplanade LLC /01/2016 5,144 SF 89 Mos. Mos. 1-5 $0.00 Mos $35.00 Mos $36.00 Mos $37.00 Mos $38.00 Mos $39.00 Mos $40.00 Mos $41.00 $42.00 rsf FSG Base Year 2016 Transaction Type: New Lease Turn Key TI Eff. Rate: $35.87 Biltmore Financial Center III 2394 E. Camelback Rd. Camelback Corridor Versant Capital Management Inc. ViaWest Properties LLC /01/2016 6,540 SF 91 Mos. Mos. 1-7 $0.00 Mos $32.00 Mos $32.75 Mos $33.50 Mos $34.25 Mos $35.00 Mos $35.75 Mos $36.50 $45.00 rsf FSG Base Year :1000 Reserved: $80.00/mo Unreserved: $60.00/mo Transaction Type: Renewal Space Condition: Second Generation Eff. Rate: $31.62 Camelback Center Camelback Corridor Oracle Corporation TIAA-CREF /01/2016 9,401 SF 36 Mos. Mos $24.00 Mos $24.50 Mos $25.00 $15.00 rsf FSG Base Year Transaction Type: Renewal 2355 E. Camelback Rd. Eff. Rate: $24.50

26 LEASE COMPS Building Name Submarket Tenant Trans. Date Size Term (Mos.) Rate Structure T.I. Lease Type Parking Ratio Comments Address Landlord Start Date Effective Rate Expenses Covered Anchor Centre West 2201 E. Camelback Rd. Camelback Corridor Avenue 5 Residential LLC KBS Realty Advisors /01/ ,974 SF 84 Mos. Mos. 1-6 $8.21 Mos $13.13 Mos $18.36 Mos $23.37 Mos $30.50 Mos $0.00 Mos $31.00 Mos $0.00 Mos $31.50 Mos $0.00 Mos $32.00 Mos $0.00 Mos $32.50 Mos $0.00 As-Is FSG Base Year 2016 Transaction Type: New Lease Space Condition: Second Generation Turn-key. Eff. Rate: $ Camelback Center 3900 E. Camelback Rd. Camelback Corridor Nova Financial & Investment Ryan Companies US, Inc /01/ ,598 SF 87 Mos. Mos. 1-5 $0.00 Mos $26.00 Mos $26.65 Mos $27.32 Mos $28.00 Mos $28.70 Mos $29.42 Mos $30.16 $60.00 rsf FSG Base Year Transaction Type: New Lease Eff. Rate: $26.38 Madison Square 5343 N. 16th St. Camelback Corridor Bridgeview Bank EverWest Real Estate Partners, LLC /01/2015 8,103 SF 65 Mos. Mos. 1-5 $0.00 Mos $25.00 Mos $25.50 Mos $26.00 Mos $26.50 Mos $27.00 $32.00 rsf FSG Base Year :1000 Reserved: $50.00/mo Unreserved: $30.00/mo Transaction Type: New Lease Space Condition: Second Generation 5% cap on controllables. Eff. Rate: $24.00

27 Building Name Submarket Tenant Trans. Date Size Term (Mos.) Rate Structure T.I. Lease Type Parking Ratio Comments Address Landlord Start Date Effective Rate Expenses Covered 3900 Camelback Center 3900 E. Camelback Rd. Camelback Corridor Grand Canyon Title Ryan Companies US, Inc /01/ ,698 SF 72 Mos. Mos. 1-5 $0.00 Mos $28.00 Mos $28.75 Mos $29.50 Mos $30.25 Mos $31.00 Mos $31.75 $60.00 rsf FSG Base Year Transaction Type: New Lease Eff. Rate: $27.67 Anchor Centre West 2201 E. Camelback Rd. Camelback Corridor UNUM Life Insurance Company of America KBS Realty Advisors /01/2015 5,622 SF 66 Mos. Mos. 1-6 $0.00 Mos $29.50 Mos $30.00 Mos $30.50 Mos $31.00 Mos $31.50 $60.00 rsf FS Base Year Transaction Type: New Lease Space Condition: Second Generation TI high as previous user of the space was medical and demo costs were excessive. Eff. Rate: $27.73 Biltmore Financial Center One 2390 E. Camelback Rd. Camelback Corridor Colliers International ViaWest Properties LLC /01/ ,782 SF 120 Mos. Mos $0.00 Mos $28.50 Mos $29.00 Mos $29.50 Mos $30.00 Mos $30.50 Mos $31.00 Mos $31.50 Mos $32.00 Mos $32.50 $60.00 rsf FSG Base Year 2015 Transaction Type: Renewal Space Condition: Second Generation Renewal plus expansion of space Eff. Rate: $27.45

28 Building Name Submarket Tenant Trans. Date Size Term (Mos.) Rate Structure T.I. Lease Type Parking Ratio Comments Address Landlord Start Date Effective Rate Expenses Covered Anchor Centre West 2201 E. Camelback Rd. Camelback Corridor 1800 accountant KBS Realty Advisors /01/2015 5,654 SF 39 Mos. Mos. 1-1 $0.00 Mos $29.50 Mos $0.00 Mos $30.00 Mos $0.00 Mos $30.50 As-Is FS Base Year Transaction Type: New Lease Space Condition: Second Generation Eff. Rate: $27.69 Biltmore Financial Center I 2390 E. Camelback Rd. Camelback Corridor Source Healthcare Analytics Invesco Advisors /16/ ,481 SF 64 Mos. Mos. 1-4 $0.00 Mos $28.00 Mos $28.50 Mos $29.00 Mos $29.50 Mos $30.00 As-Is FSG Base Year Transaction Type: Renewal Blend & Extend Eff. Rate: $27.19 Northern Trust Bank Tower 2398 E. Camelback Rd. Camelback Corridor Tenant Advocate Invesco Advisors /26/2015 9,416 SF 120 Mos. Mos $0.00 Mos $33.00 Mos $33.75 Mos $34.50 Mos $35.25 Mos $36.00 Mos $36.75 Mos $37.50 Mos $38.25 Mos $39.00 Mos $39.75 As-Is FSG Base Year Transaction Type: Renewal Blend & Extend Eff. Rate: $33.35

29 Building Name Submarket Tenant Trans. Date Size Term (Mos.) Rate Structure T.I. Lease Type Parking Ratio Comments Address Landlord Start Date Effective Rate Expenses Covered Biltmore Financial Center I 2390 E. Camelback Rd. Camelback Corridor Evergreen Devco Invesco Advisors /01/ ,645 SF 72 Mos. Mos $0.00 Mos $29.00 Mos $29.50 Mos $30.00 Mos $30.50 Mos $31.00 As-Is FSG Base Year 3.16:1000 Reserved: $50.00/mo Transaction Type: Renewal Space Condition: Second Generation Renewal Eff. Rate: $25.00 Anchor Centre 2201 E. Camelback Rd. Camelback Corridor Griffin Capital Securities KBS Realty Advisors /01/2015 7,154 SF 40 Mos. Mos. 1-2 $0.00 Mos $30.00 Mos $0.00 Mos $30.75 Mos $0.00 Mos $31.50 $5.00 rsf FSG Base Year Transaction Type: New Lease Eff. Rate: $27.60 Anchor Centre West 2201 E. Camelback Rd. Camelback Corridor BeachFleishman PC KBS Realty Advisors /01/2015 9,027 SF 72 Mos. Mos. 1-7 $0.00 Mos $12.50 Mos $30.50 Mos $30.50 Mos $31.50 Mos $32.00 Mos $32.50 $36.00 rsf FS Base Year 3.50:1000 Transaction Type: New Lease Eff. Rate: $25.09

30 DIRECT COMPETITION TO COME

31 DIRECT COMPETITION TO COME

32 Lee & Associates Research Department 1. Lee & Associates offers diversified services geared towards the acquisition, leasing, management, and sale of office, industrial, retail and multi-family sectors of the Phoenix metropolitan commercial real estate market. 2. The Lee & Associates research department provides our clients with the most extensive research capabilities available. Our research analysis group provides the brokerage teams with the most relevant market information through market analysis, mapping and forecasting. Quarterly market reports and studies are produced using the latest third-party databases. Additionally, the department provides public relations and social media outreach, marketing proposals, broker opinions-of-value, binding and packaging and other marketing services. 3. With access to countless third party resources, we create opportunity through a combination of reliable tools, resources, and deep knowledge of the entire Phoenix metropolitan commercial real estate market. 4. We utilize services such as Costar, Xceligent, Maricopa.gov, Vizzda, Loopnet, Maricopa County Assessor s Office, County Recorder s Office, Arizona Corporation Commission, Reference USA, and GPEC to give out clients the most relevant and accurate market information. 5. Sale and lease comps are compiled daily from all brokerage firms in the valley to give our clients the most relevant and up to date information about current activity in the surrounding market.

33 MARKETING CAPABILITIES

34 MARKETING CAPABILITIES MARKET RESEARCH CAPABILITIES Our in-house marketing, research and graphics departments work hand in hand with out team to provide our clients unparalelled market knowledge and customized marketing services for each project. Headed by Chris McChesney, the research department at Lee & Associates has extensive research capabilities. The department plays a major role in each company project in the following areas: inputting and tracking information in the databases, market studies, forecasting reports, desktop publishing mailers, public relations, and client specific studies. COMPREHENSIVE DATABASES INDUSTRIAL 288 Million Sq. Ft. Tracked Availability/Rental Rates Ownership/Tenant information Comps/Tax Data Construction OFFICE 81 Million Sq. Ft. Tracked Availability Rental Rates Ownership/Tenant information Building features Construction MARKET STUDIES 1. Absorption reports - quarterly on all disciplines 2. Competition spreadsheets 3. Sale and lease comps 4. Market share analysis 5. Trends 6. Submarket comparisons - data back to Construction - history since Financial Analysis Land For Sale Properties

35 MARKETING CAPABILITIES BRANDING & COMPETITIVE MARKETING Marketing Experience Experience/ Success Especially in today s market, experience and past success can go a long way. There is no better substitute in creating a brand that has been successful in the past and has the experience through different cycles in the market. Strong Ownership We look at stabilized ownership as the largest piece of the puzzle within the marketing plan and branding of Park One. This is something which can differentiate your project from the competitors and will be the basis of selling Park One. PR Graphics Firm Create marketing campaigns targeting strategic Tenants. Develop integrated website/marketing materials to help sell the story of Park One. Stabilized Ownership Outlook Strategic Marketing Competitive Marketing: Prospecting Team Experience Immediately, we will focus on: Team Mentality Tenants on a list of targeted prospects Establish a reputation of a professionally integrated team that is in sync and aware of what it takes to successfully lease in this market. A cohesive team of leasing, management and ownership presents a lasting impression to the brokerage and tenant community. The Camelback Corridor, Scottsdale & Tempe markets Calls on influential Economic Development groups EC, City of Phoenix Economic Development and the State Commerce Department Identify the top market segments represented by the existing submarket tenants and develop a priority call list of those companies in our market. Identify high priority national companies in these market segments not currently in Phoenix. Pursue contact with those companies.

36 % 16.1% Absorption Vacancy 30.0% 25.0% 20.0% 20.8% 15.0% 10.0% 5.0% 0.0% for further information, please contact exclusively represented by MARKETING CAPABILITIES MARKETING / LEASING PLAN FORECASTING DESKTOP PUBLISHING MAILERS PUBLIC RELATIONS Availability Rates Construction Tenant Activity Q Phoenix Office Market Overview The Phoenix office market continues at personal space needs of individual workers a steady, positive pace in Q2. The sector now greatly reduces space requirements. Also, would never be confused with the overheated today s companies have a variety of different office market seen back in Calmer work venues to choose from rather than heads seem to be prevailing this time. Although traditional office space such as retail, warehouse several submarkets are considered very hot. or showroom space (which can be leased for Much of the leasing and building activity is less money). happening in those areas in the East Valley, most notably Tempe and Chandler. Another continuing positive sign for the market is the addition of more speculative Downtown Tempe with its glass skyscrapers, office construction. Developers are nding shopping and a large university presence has the demand is strong for high-quality, unique drawn big players with new projects, mostly projects. And, while money is relatively around Tempe Town Lake. Zene ts, a San inexpensive to borrow, banks have also Francisco-based human resources company loosened up enough to allow projects to go moved some operations to the Valley a few through without a major tenant to secure years ago to Scottsdale. The company just funding. These banks know that even in a expanded again by signing for 162,808 SF in market with 20-plus percent vacancy, companies Hayden Ferry Lakeside III, the nal phase of the will still upgrade, or ee to quality for the spec. office project at the gateway entrance to right product. Additionally, large tracts of Tempe. Their lease takes the building to near contiguous office space can be a rare nd in key 80% occupancy. With the addition of State submarkets. Farm s 2.1M SF Marina Heights project next door and more high-rise buildings under construction A concern for the market is a high-degree of by years end, the Tempe market is responding functional obsolescence that has kept tenants to the demand of young companies who want from leasing up existing product. Much of to be in unique areas featuring urban lifestyle the product from the 1980 s and 1990 s is in amenities. suburban park con gurations and don t provide the right amenities or prestige companies are While Tempe and Chandler are the new hoping to leverage. And, tenant improvements growth hotspots, a trend across the Valley and can only go so far. Thus, the move to new nationally is the need for less space by tenants projects continues. The next area to look for as new collaborative workplaces shift away from is Class B activity as key properties have been traditional offices and cubicles to conversation repositioning themselves in the market and centers and project hubs. Doing away with will appeal to a core subset of the market. The Absorption/Vacancy in SF, % 12.0% 26.2% 27.1% 26.6% 24.7% 23.2% 20.6% Midtown Phoenix market is already capitalizing on this with over 400,000 SF of major leases in newly remodeled Class B buildings so far this year. The Phoenix office sector vacancy rate dropped 20-basis points to 20.8% from last quarter. There was only 162,882 SF of market absorption and 452,565 YTD. These totals indicate a slower than average pace, but are lower too because of new additions to inventory. Leasing activity has improved over last quarter but is below historic averages. As mentioned earlier, building activity remains strong at nearly 4.6M SF compared with last quarter s 4.4M SF total. There was 1.3M SF of new office deliveries to the market in Q2. Overall asking full-service lease rates were $ Property Brochures - including photographs, floor plans and graphics. Color Graphs - Metropolitan Phoenix submarkets and class data. - Trends all history since 1987 (construction, availability and rental rates). Proposals Distributed every six weeks to reach over 350 non-lee commercial agents All listings Selected brochures User mailers (Street Smart, SIC, Specific) Retain PR/Marketing Firm Create Marketing Campaign focused on strategic markets nationwide Develop integrated website a development of PIMA CENTER PARKWAY NORTH OF VIA DE VENTURA SCOTTSDALE, ARIZONA Up to 8:1000 Parking BILL BLAKE bblake@leearizona.com CRAIG COPPOLA, CCIM, CRE, SIOR ccoppola@leearizona.com ANDREW CHENEY, CCIM, SIOR acheney@leearizona.com Top 5 Office Construction Projects Project Address Major Tenant(s) Building SF Delivery Marina Heights (5) 300 Rio Salado Pkwy., Tempe State Farm 2,108,000 SF Q Rivulon (2) E. Rivulon Blvd., Gilbert Isagenix 275,000 SF Q Hayden Ferry Lakeside III 40 E. Rio Salado Pkwy, Tempe Zenefits 264,235 SF Q Ocotillo Corporate Campus 2700 S. Price Rd., Chandler Wells Fargo 205,000 SF Q Mach One (2) 200 E. Yeager Dr., Chandler Spec. 200,000 SF Q ±125,000-square-foot 3-story Class A offi ce building 41,760-square-foot effi cient fl oor plates 6:1000 parking expandable up to 8:1000 with added parking deck 16 clear heights on 1st fl oor 14 clear heights on fl oors 2 & 3. Potential campus opportunity Superb freeway visibility to over 165,000 cars per day on Loop 101 Access to two full-diamond interchanges Abundant restaurant and entertainment amenities within one-mile radius Minutes from Sky Harbor, Old Town Scottsdale, Tempe, and North Scottsdale COLTON TRAUTER ctrauter@leearizona.com GREGG KAFKA gkafka@leearizona.com Phoenix Office Submarket Map 3200 EAST CAMELBACK ROAD, SUITE 100 PHOENIX, ARIZONA FAX Downtown Phoenix 2. Midtown Phoenix 3. East Phoenix 4. 44th St. Corridor 5. Camelback Corridor 6. Piestewa Corridor 7. Northwest Phoenix 8. Southwest Phoenix 9. Airport Area 10. S. Tempe/Ahwatukee 11. Tempe 12. Scottsdale South 13. Central Scottsdale 15. Deer Valley Airport 16. Arrowhead 17. Glendale 18. Chandler 19. Gateway/Loop Superstition Corridor 21. Mesa Downtown 22. Mesa East 23. Scottsdale Airpark 24. N. Scottsdale/Carefree 25. N. Phoenix/Cave Creek 26. North I Loop 303/Surprise

37 MARKETING CAPABILITIES RECOMMENDATIONS Marketing Materials Marketing Visits Broker Awareness Create a corporate brochure and website that tells the Park One story. Show the opportunities within the project. Create presentation materials that show amenities maps, corporate neighbors, and building floor plates. Establish a uniform approach for meeting and touring prospects so that any confusion is minimized, and ease of navigating the project and advantages of the project are emphasized. Meet with Brokers active in the Camelback Corridor submarket quarterly. This will keep The Park One in front of them as well as update them on opportunities that are available within the project.

38 MARKETING TOOLS AND BUDGETING the gateway to Downtown Scottsdale Three-story Class A office building 6991 EAST CAMELBACK ROAD SCOTTSDALE, ARIZONA 172,690 square feet Prominent Old Town Scottsdale location Adjacent to 2-million-square-foot shopping center Scottsdale Fashion Square On-site amenities include Mastro s City Hall Steakhouse, deli and building conference room Spec suites available for immediate occupancy Newly landscaped courtyard and updated common areas Stable, well capitalized ownership for further information please contact Exclusively represented by: Bill Blake bblake@leearizona.com Craig Coppola ccoppola@leearizona.com Andrew Cheney acheney@leearizona.com Colton Trauter ctrauter@leearizona.com 3200 EAST CAMELBACK ROAD, SUITE 100 PHOENIX, AZ Gregg Kafka gkafka@leearizona.com BROKERAGE COMMUNICATION In addition to our own marketing efforts, we will enlist the brokerage community to help in the leasing of Park One. Once the marketing materials have been developed, we will solicit the assistance of the brokers of all major brokerage firms and boutique firms with a presence in the Metropolitan Phoenix market: CB RICHARD ELLIS COLLIERS INTERNATIONAL CUSHMAN & WAKEFIELD SAVILLS STUDLEY CRESA PARTNERS JLL MOHR PARTNERS NAI HORIZON COMMERCIAL PROPERTIES TRANSWESTERN BENEFITS We at Lee & Associates believe an outstanding rapport within the brokerage community is imperative. While we have no formal programs in place, we make it a point to treat our fellow brokers similar to clients with professional and prompt responses. We intentionally offer all open houses in the Metro Phoenix market to help promote relationships and reciprocal market exposure. Our stellar reputation within the Phoenix market can be judged simply by asking our competition.

39 POTENTIAL CHALLENGES & OPPORTUNITIES

40 POTENTIAL CHALLENGES AND OPPORTUNITIES STRENGTHS SR-51 Freeway Access Structured Parking Strong Amenity Base Spec Suites Ready to Lease WEAKNESSES Traffic concerns at intersection Several competitive projects that have spec suites Visibility EMPHASIZE POSITIVE FEATURES, MINIMIZE SHORTCOMINGS While all projects propose challenges, our team will not only understand them, but will focus on the story of each property. We will emphasize the success of the project and the features of each individual suite and also be able to minimize the challenges. Creating amenities maps, ingress and egress maps, and marketing boards for the project will be the focus of addressing them on every tour.

41 WHY LEE

42 WHY LEE OUR COMPETITIVE ADVANTAGE We are hungry Large complex deal experience Create Marketing Strategy - Site Specific Selling Identify and Pursue Target Prospects Resourceful Team No Conflicts Camelback Corridor Experience (Biltmore Commerce Center, Camelback Commons, Biltmore Financial) Positioning assets for sale BENEFITS The Lee & Associates team s deep understanding of the North Scottsdale market, and site specific strategy will result in success for Velocis.

43 WHY LEE Over Ryan s nearly 20 years of real estate activity in Arizona, Lee & Associates has consistently performed at an extremely high level for us and is considered a Ryan strategic partner in Arizona. Ryan s mission statement is Building Lasting Relationships and that quality in a broker is critically important to us. This Team focuses on relationships and have personally been providing collaborative consulting and leasing on a multiphased Ryan office park for almost ten years. They deliver. John Strittmatter, Ryan Companies

44 COMPENSATION

45 COMPENSATION FEE STRUCTURE AND TERMS OF AGENCY All fees are based off rental consideration. NEW LEASES WITHOUT A PROCURING BROKER Years 1-5 5% Years % Over 10 Years 1% Lee & Associates Leases with Termination Rights If a lease is signed with a penalty-free termination right, commissions will be due only on guaranteed term as the term progresses. If a termination right contains a penalty to the tenant upon termination, then commissions will be paid based on corresponding new or renewal schedules. NEW LEASES WITH A PROCURING BROKER Lee & Associates Tenant Broker Total Fee Years % 5% 7.50% Years % 2.50% 3.75% Over 10 Years 0.50% 1% 1.50%