November 23, 2015 Presented by: Julia Wilhelm, Executive Vice President o. 415 395 7214 c. 415.203.0451 Julia.Wilhelm@am.jll.com

Sustainability and Tenants 2.0

The Old School Slides $$$ Benefits for Tenants

Operating Expense Savings

28% = average energy use reduction LEED-CI

= average opex savings of +/- $0.73 /rsf/ year

$3 $30 $300

Increased Worker Productivity: 13 studies concluded direct relationship between individual productivity and increased ventilation • Productivity increases ranged between 1%

and 9%

7 studies found relationship between individual productivity and increased temperature control • Productivity increases ranged between 3%

and 11% (with average of 7.2%)

Estimated that control of thermal conditions can generate performance increases of: • 7% for clerical tasks • 11% for logical thinking tasks • 3% for skilled manual work • 8.6% for very rapid manual work

Energy Rent Payroll

The FUTURE IS NOW

Deloitte Amsterdam HQ – The Edge

What the next generation of employees cares about

2015 What Tenants Really Care About

Companies with Corporate Sustainability Initiatives Who? • Large Corporations - mature tech, business services, non-profits Why?

• Cost savings – less but BETTER & MORE COMMUNITY ORIENTED • Recruiting Millennials • Investor/Client Pressure • PR • Need to be INNOVATIVE

What?

• Third Party Certification • Ability to Measure (and verify!) • Landlord Commitment

• Get it in the lease! • Equitable contribution • Code/laws

2015 What Tenants Really Care About

Language I hope Every LL Adopts! Green Provisions. In Landlord’s management and operation of the Building throughout the Lease term, Landlord shall, in the exercise of its good faith discretion and to the extent practicable, (A) maximize energy savings, (B) accurately track energy usage, (C) conserve water, (D) reduce greenhouse gas emissions, (E) reduce and recycle waste, (F) implement green purchasing and green cleaning strategies, (G) encourage lower carbon impact transportation by Building tenants, (H) explore options for obtaining energy from renewable sources, (I) take into account in the calculation of Operating Expenses, any environmental credits or offsets realized by Landlord with respect to costs that would otherwise constitute Operating Expenses under this Lease (when measurable), net of costs to obtain such credits or offsets, and (J) obtain such green building certifications and ratings as Landlord and Tenant shall deem advisable and appropriate for the Building.

2015 The Elusive “Green Lease”

Companies where Recruiting and Retention are Paramount Who? • Earlier stage tech, law firms, etc. Why? It’s all about the people & brand

• CULTURE • EMPLOYEE ENGAGEMENT • WELL BEING • EXPERIENCE

What? • Outdoor space • Materials • Amenities

• Bikes/showers are expected • Pets are the new bikes • Child-care will be the new pets

2015 What Tenants Really Care About

JLL & Sustainability – A Record of Proven Performance

JLL Energy & Sustainability Services (ESS)

• 334 global sustainability clients, 158 in the Americas

• 129 global full-time energy and sustainability employees, 50 in the Americas

• 35 Full-time energy engineers • Managed 300+ LEED projects - 75Msf • Over 1,400 LEED accredited

professionals (Most of any organization in the world)

• ENERGY STAR Partner of the Year (2007, 2010-2015)

• ENERGY STAR “Sustained Excellence Award’\” (2012-2015)

• More than 5,000 properties with ENERGY STAR ratings nationally, representing over 205 million s.f.

World-class performance… by the numbers

Presented by: Julia Wilhelm, Executive Vice President o. 415 395 7214 c. 415.203.0451 Julia.Wilhelm@am.jll.com