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McBride real estate serVices//VISION & SERVICES

TENaNT REpRESENTaTIONtenant representation is the heart of the services provided by McBride. Whether we’re assisting a client in a renewal or relocation of their leased facilities, or advising clients how to maximize their leverage, we are constantly looking for ways to create value for our clients. in any assignment, our mission is to protect our clients’ best interests, while advancing their business objectives. tenant representation services include acquiring and disposing of leased and owned facilities, lease renegotiation, expansion negotiation, subleasing and consulting. We consistently enjoy the honor of being selected by leading corporations, law firms, non-profits and associations to represent their interests.

LEaSE NEgOTIaTIONthe lease is the codifying document for any rental transaction. therefore, it is crucial that the hard fought concessions negotiated in a letter of intent remain undiluted in the final version of the lease. McBride plays a critical role in ensuring that our clients achieve the most favorable lease terms.

LEaSE RENEwaLMcBride’s principals have been on the forefront of lease renewal strategies since the early 1980s. Our programmed approach levels the playing field and creates significant value for our clients. in order to create maximum leverage, relocation options must be considered and used as leverage in negotiations. Our process allows our clients to keep their rental rate below market and to share in the savings the landlord realizes in the event of a renewal.

SaLESMany of our clients wish to explore purchasing a building rather than continuing to lease. McBride has built an impressive track record of helping clients buy or sell offices in a variety of shapes and sizes. likewise,

we have assisted many other clients in reviewing the benefits and drawbacks of leasing versus owning. towards that end, we have developed a proprietary financial analysis for our clients to compare the costs of leasing versus owning.

wE LIVE TO FIghT FOR OuR CLIENTSthe McBride mission is to provide real estate solutions that champion our clients’ objectives. We are not your “typical” brokerage firm, rather, we are a flexible organization driven to provide our clients with customized solutions, industry leading analytical tools, access to the best professionals for every phase of a project and the personal attention of the company’s principals.

ExCLuSIVELy SENIOR BROkERS = NO wEak LINkSthe McBride team is comprised of purely senior brokers with complementary skill sets. Our principals’ backgrounds include work in the legal, political, financial, construction and architecture sectors. the McBride team averages 15 years of experience representing tenants in lease negotiations.

CuSTOmIzEd aNaLySIS = CLIENT FOCuSEd SuCCESSin a world of pre-programmed, canned analysis, McBride provides clients with the highest level of analytical service available within the real estate industry. We study our clients to understand their core processes and objectives then customize our proprietary financial analysis to evaluate the most critical elements of the project. Our client-focused analytical approach is the driving reason why clients select McBride to represent their business, ranging from small non-profit organizations to foreign governments, to Fortune 50 corporations. We encourage you to contact our references. Our demonstrated ability to consistently provide the highest level of service is a key reason for our success.

VISION & SERVICESMcBride real estate services is, first and foremost, a tenant representation firm whose services go far beyond simply finding space and negotiating transactions. rather, we endeavor to serve our clients as an extension of their organization. as our clients’ de facto facilities department, McBride provides a full complement of real estate services to support all of their commercial real estate related needs. these include: representing our clients in the acquisition and disposition of leased and owned facilities, lease audits, lease administration, strategic planning, reviewing operating expenses and project management for a variety of real estate projects. McBride’s clients enjoy the benefit of our proprietary online services and analytical tools and take comfort in the fact that we do not represent landlords.

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McBride real estate serVices//pROCESS

OFFICE LEaSE pROCESSSTagE EVENT BENEFIT CLIENT COmmITmENT dELIVERaBLE

1 select Project team McBride becomes an extension of client’s organization

engagement letter Project timeline, executed engagement letter

2 Needs analysis customize a strategy which plays your strengths against the weakness of the market.

interview client’s leadership, review current lease and related information.

McBride space calculator, Written summary of status Quo and Needs.

3 review Market Options View market options and put client “in play” to create a competitive dynamic.

Participate in touring.

site survey and Property tour.

tour selected Buildings

4 Preliminary Proposals solicited and received

create an “all things being equal” view of client’s options.

review and feedback.

Financial analyses.

3 Finalists selected

Preliminary analyses completed

5 Preliminary test Fits completed

analysis of architectural efficiency and construction costs.

review and feedback.

construction budget and timeline.

Preliminary construction Budgets completed

select Primary & secondary Options

6 letter of intent for Primary Option Fully Negotiated

realize most favorable terms = create Value

decisive decision making.

Best & Final analysis.

analysis of Final terms completed

7 lease Negotiation capture and retain value created in the lOi

decisive decision making.

lease comments and abstract.

lease execution & abstract completed

8 M.e.P. (construction) drawings

Maximize the value of negotiated terms, eliminate hassle.

remain engaged in overseeing the final steps of the process.

construction Budget, timeline and Online Management Facilities.

Pricing

Permits

Buildout

Move (if necessary)

additional improvements Ordered (if necessary)

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OFFICE LEaSE RENEwaL/RELOCaTION SChEduLE

Jan Feb mar apr may Jun July aug Sep Oct Nov dec Jan

EVENT start 30 60 90 120 150 180 210 240 270 300 330 360

select Project team

Needs analysis

review Market Options

tour selected Buildings

Preliminary Proposals solicited and received

3 Finalists selected

Preliminary construction Budgets completed

Preliminary test Fits completed

Preliminary analyses

select Primary & secondary Options

letter of intent for Primary Option Fully Negotiated

lease Negotiation

lease execution

M.e.P. (construction) drawings

Pricing

Permits

Buildout

Move (if necessary)

additional improvements Ordered (if necessary)

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McBride real estate serVices//pROCESS

aRChITECTuRaL maNagEmENT SERVICESMcBride real estate services partners with architecture firms in the region to provide architectural services to our clients. after assisting our client in selecting the best architect for their needs, we guide our clients through the design process to ensure that each of the spaces under consideration provide the maximum utility. We make sure that our clients’ goals are realized by ensuring the project never loses sight of the client’s vision and business objectives. the space must be well designed and aesthetically appealing, but also have the greatest possible efficiencies to reduce costs. analyzing potential buildings for space efficiencies many times translates into a 10-20% savings for our clients when comparing one site against another. this skill and service is just one of many nuances in the real estate decision making process that save our clients money and time.

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BuILdINg 1501 m Street 1399 Ny ave 101 Constitution ave 1101 New york avenue 901 k Street

BuILdINg SIzE 230,035 200,000 300,000 250,000 275,000

FlOOr(s) PrOPOsed 10th 3rd 2nd 4th 8th

reNtaBle sQUare Feet 10,000 9,500 10,200 8,950 10,000

# OF eMPlOYees 30 30 30 30 30

lease terM 5 5 5 5 5

cOMMeNce date 1-apr-11 1-apr-11 1-apr-11 1-apr-11 1-apr-11

iNitial rate ($/sf) $55.00 $50.00 $75.00 $45.00 $47.50

FUll serVice Or NNN Full service NNN Full service NNN NNN

estiMated 2011 Base Year 2011 Base Year 2011 Base Year 2011 Base Year 2011 Base Year

tOtal OP eXP & taXes $25.00 $33.02 $24.25 $24.50 $25.00

estiMated FUll serVice rate $55.00 $83.02 $75.00 $69.50 $72.50

aNNUal escalatiON 2.5% fixed 2.8% fixed 3.0% fixed 2.5% fixed 2.5% fixed

RENTaL aBaTEmENT:

Year 1 (months) 1 3 0 2 4

Year 2 (months) 0 0 0 0 0

Full service or NNN Full service NNN Full service NNN NNN

OVertiMe HVac cOst ($/HOUr)

est. OVertiMe HOUrs/Year

iMPrOVeMeNt allOWaNce

$ Per sQ Ft $50.00 $85.00 $60.00 $75.00 $100.00

RENTaL COSTS

“cONstaNt” cOst/sF/Yr $89.11 $89.03 $80.58 $74.76 $77.93

“cONstaNt” cOst/Year $286,682 $445,168 $362,599 $366,343 $377,985

“cONstaNt” cOst/eMPlOYee $28,668 $44,517 $36,260 $36,634 $37,798

tOtal GrOss reNtal $1,441,693 $2,238,595 $1,823,606 $1,842,623 $1,901,069

ParKiNG ($/MONtH/sPace) N/a 1:1,500 1:1,500 1:1,500 1:1,500

HVac HOUrs 8-6 M-F / 9-1 sat 8-6 M-F / 9-1 sat 8-6 M-F / 9-1 sat 8-6 M-F / 9-1 sat 8-6 M-F / 9-1 sat

terMiNatiON OPtiON tBd tBd tBd tBd tBd

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McBride real estate serVices//pROCESS

Premises

Base rental

rental abatement

real estate taxes and Operating expenses

Base rental adjustment

initial lease term

Option to terminate

lease commencement

delivery of Premises

tenant Plans

Build out allowances

General contractor Mark-ups

competitive Bidding

construction Management Fees

tenant’s contractor(s)

design and construction schedule

early Possession for tenant Fit-Up

Pre-commencement expansion

Option to contract

Options to extend term

right of First Offering

Green lease issues

Moving related expenses

re-painting/re-carpeting

storage space agreement

subleasing and assignment

security deposit

signage

roof rights

Non-disturbance/Quiet enjoyment

Parking

Building directory

cleaning services

access

security

Heating, Ventilation and air conditioning

Holidays

current lease Obligation

Hazardous Materials representation

air Quality

Personal liability Waiver

leed certification

pOINTS TO NEgOTIaTEas is noted in the Office lease Process table, the critical terms of a lease agreement are negotiated in the letter of intent, prior to the lease negotiation. at that moment our clients hold the highest degree of leverage over the landlord, making it the optimum time to extract our final concessions. Just as importantly, once the letter of intent has been completed, we work diligently with our clients’ legal counsel to make sure all of the concessions negotiated are incorporated into the lease. Below is a sampling of some of the lease issues and points we negotiate on our clients’ behalf.

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McBride real estate serVices//pROCESS

pROJECT maNagEmENT appROaChOnce the lease terms are negotiated and the lease is signed, many of our competitors feel that their role is complete and they move on to the next transaction. this leaves the client without any assistance in dealing with a myriad of issues related to their new lease, including construction of their space, it systems, moving and building management issues. the McBride team has made a commitment to ourselves and our clients to provide the highest level of service in the industry. as our clients’ de facto facilities department, we go above and beyond traditional “brokerage” services by transforming our team into an extension of our client’s organization. We remain active throughout the term of the lease from participating in all construction meetings to reviewing operating expenses and the building’s management services.

PrOcess OrGaNiZatiON cHart

CLIENT

laNdlOrdBrOKer it

arcHitecteNGiNeers leGal

PrOPertY MaNaGer MOVers

FUrNitUrecONtractOr

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McBride real estate serVices//pROCESS

CONSTRuCTION maNagEmENTMcBride’s construction management services ensures that our client’s construction projects remain within budget and are completed on time. By engaging third party project management, our clients have the ability to scale services to be as broad or as limited as their needs dictate. Quality construction management services, engaged early in the process, not only saves our clients money by competition amongst multiple bidding contractors, but also ensures that the project never loses sight of our client’s objectives.

pRE-dESIgN phaSE• architect / engineer selection / contract Negotiation • site / Building evaluations• Budget development• Master schedule

dESIgN phaSE• Project & schedule control• cost estimating• Value engineering• Planning concepts / alternatives analysis• early Procurement advice• design documents review

OuTCOmES• imaginative & efficient design• design in line with Budget• drawings & specifications that

clearly depict required work

BId phaSE• contracting strategy• contractor Pre-qualification• contractor request for Proposal• Pre-bid conference

CONSTRuCTION phaSE• schedule control• Quality control• cost control• correspondence review / response• change Order evaluations• submittals control• Payment application control• substantial completion

OuTCOmES• appropriate architect• suitable Building• realistic Budget• accurate schedule

OuTCOmES• the Most Qualified contractor• engaged under competitive

agreement

OuTCOmES• appropriate architect• suitable Building• realistic Budget• accurate schedule

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McBride real estate serVices//pROCESS

OpERaTINg ExpENSE REVIEw & audIT SERVICESMcBride provides its clients lease expense reviews on an annual basis. the purpose of this service is to verify that the client is paying its proper rent, operating expense and real estate tax pass-throughs. the McBride team negotiates the lease operating provisions and exclusions, therefore, and it is our obligation to see that the calculations are being done correctly. should we believe that a landlord has improperly charged for operating expenses, we’ll review the oversight with the landlord and request a refund. if necessary, we will provide a comprehensive audit of the building’s operating and real estate tax expenses. the McBride team performing lease audit services includes cPa’s and MBa’s.

dO YOU HaVe a QUestiON aBOUt YOUr reNtal iNVOice Or OPeratiNG eXPeNse PasstHrOUGHs?

leaseadMiNistratiON

electronic files system for lease documents, cad

drawings and lOis

all lease data extracted, analyzed

and evaluated

Flexible software Platform

review of Operating expense

Pass-throughs