A Few Basics - #1 Our Business is Based On Relationships

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1 Lessons Learned in the Trenches Commercial Case Studies Ed Riggins, SIOR, CCIM (404) A Few Basics - #1 Our Business is Based On Relationships Relationships 0 Ed Riggins 2016

2 A Few Basics - #1 Our Business is Based On Relationships Opportunities Relationships A Few Basics - #1 Our Business is Based On Relationships 2

3 A Few Basics - #1 Our Business is Based On Relationships Transactions Assignments Opportunities Relationships Ed Riggins 2016 A Few Basics - #1 Our Business is Based On Relationships Fees \Transactions Assignments Opportunities Relationships 3

4 A Few Basics - #1 Our Business is Based On Relationships C Ed Riggins 2016 Assume You'll Get Paid Eventually* To Whom It May Concern: I am writing to recognize the efforts of Ed Riggins, who recently represented our company in the negotiating of our lease renewal. Ed first called on us in about 2000, long before we had any need for his services, but he continued to check in with us from time to time. =.! way ; By the time our lease expiration had rolled around, we had grown very comfortable with Ed, his knowledge of the marketplace, and his approach to client advocacy. It was always very apparent to us that Ed had our company's interest at heart, and at all times during the process, we found Ed to be responsive, reliable and I would highly recommend Ed Riggins to anyone who finds themselves in need of real estate advisory services. Sincere {. 71, yt t4 *and use common sense... 4

5 A Few Basics - #2 It Takes Time to Build a Practice Closed Execution A Few Basics - #3 It Takes Balance to Have Long-Term Success Execution 0 Ed Biggins 2()16 5

6 5 Case Studies 1. Small Local Airport Tenant (SLAT) 2. Global Industrial Giant 500 (GIG 500) 3. Local Professional Services (LPS) 4. International Logistics Corp. (ILC) 5. Global Building Material Manufacturer (GBMM) What We'll Discuss Assignment Description Assignment Source Human Dynamics Milestones Obstacles Lessons Learned (0E d Riggins 2016 Time GBBM LPS 15.0 ILC GIG SLAT Pursuit H Execution fid Riggins

7 Fees GIG 500 GBBM LPS $200 $100 ILC SLAT 05 $50 $100 $150 $200 $250 $300 Fee ($1,000) One Man's View on Targeting Only Pursue Clients who: in target industry and/or in submarket where you have expertise and/or have high payoff and/or have residual value for your experience/reputation and/or offer opportunity for quick execution and/or you just like... CD Ed Riggins 2015

8 Small Local Airport Tenant (SLAT) Assignment(s) 3 Lease renewals 13,000 sq. ft, $400K value, $15K+ fee(s) 8 1/2 mos. Pursuit, 1 mos. Execution (on 1 st assignment) Assignment Source NBD visit Had know from 15+ years earlier Human Dynamics One guy and he's 'cla man Milestones 20+ years spent developing expertise/reputation in this industry/area Decision to focus on this industry/area Obstacles None.. Small Local Airport Tenant (SLAT) Lessons Learned First Impressions Last a Long, Long Time There is Value in Being Part of a Community Associations Publications With Specialization Comes Efficiency 8

9 "On the weekend I make a list of the things I don't want to do" (in the coming week) because I try to avoid them too." "Problems don't age well." Jamie Dimon President, CEO J. P Niorgan Chase & Co. (Bailed out Bear Sterns) Charlie Rose interview 7/7/08 Global Industrial Giant 500 (GIG 500) Assignment(s) - Multiple Office and Flex Acquisitions - Lease 65,000+ sq. ft., $4MM+ value, $250K+ fee(s) 22 mos. Pursuit, 2 mos. Execution (on 1 St assignment) Assignment Source NBD visit to local facility Human Dynamics Local manager had budget responsibility and therefore power to choose Sophisticated corporate contact lawyer/director of Real Estate Corporate signs leases after business terms negotiated Milestones 1 st referral to different division 1 5t call from THEM to ME for special project 2 nd call from THEM to ME for renewal 3 rd call from THEM to me for corporate HQ Obstacles Client tendency to wait until last minute Multiple points of contact Ed Biggins

10 Global Industrial Giant 500 (GIG 500) Lessons Learned With Budget Responsibility (Usually) Goes Decision-Making Authority There is (Usually) a Tradeoff Between Speed, Quality, and Price Ed Riggins 2016 Local Professional Services (LPS) Assignment - Office Bldg. Acquisition - Purchase 40,000+ sq. ft., $3M+ value, $70K+ fee 15 mos. Pursuit & 13 mos. Execution 28 mos. total Assignment Source Business acquaintance who had become a friend Referred business to client Human Dynamics 2 related companies sharing space/services 4 partners "Left brain"profession Milestones Process chart - one partner "got it" Holiday call after 1 st building visit Threw away the file (almost) building defects during inspection period Seller/Tenant signed off on LOC Obstacles Limited for-sale inventory (even in soft leasing market) Seller privacy about financials Difficult listing broker 10

11 I Local Professional Services (LPS) "Typical" Timeline Form Team Establish Parameters Tour Buildings Monitor Market Offer Counter-offer Finalize Business Points Finalize Legal Points Inspection Closing Renovation Introduction I. o Idenification I I to 6 2 Negotiation ' Y C Ed Riggins 2016 Local Professional Services (LPS) Lessons Learned It's Easier to Lead a Group if You're Trusted by Their Leader Build Multiple Contact Points With Client Be Humble (Because the Market Might Prove You Wrong) Establish Search Parameters Early and Get Buy-in Manage Client Expectations Through Early Education 11

12 International Logistics Corp. (ILC) Assignment - Distribution Center Acquisition - Lease 200,000+ sq. ft., $2MM+ value, $100K+ fee 23 mos. Pursuit, 1 1/2 mos. Execution 2 yrs. total Assignment Source NBD visit to local facility Human Dynamics Locals had to get new building to get new customer Corporate needed new customer to justify new building Milestones Agreed on terms for 1 st choice building 1 st generation space Credit issues drove project to 2 nd choice building 2 nd generation space Client got account validating need for space License agreement secured occupancy (but ended leverage) Obstacles Local manager turnover before project emerged Location requirement limited building choices Late disclosure of credit issues Timing requirement limited building choices C) Ed Riggins 2016 International Logistics Corp. (ILC) Lessons Learned Take Deal Risk but not Loyalty Risk Be Open to Serendipity Always Have a Backup Plan Be a Resource During Early-Stage Planning/Budgeting 12

13 "The world is not interested in the storms you encountered, but in whether you brought the ship in safely." Norman R. Augustine Former Chairman Lockheed Martin Managing the Crisis You Tried to Prevent DBR Nov-Dec 1995 Global Building Material Manufacturer (GBMM) Assignment - Industrial Plant (Land) Dispo - Sale 75 acres, $7MM value, $200K+ fee 23 mos. Pursuit, 26 mos. Execution 4 yrs. total /ALL SALESMEN Assignment Source IF YOU DON'T HAVE - NBD visit to plant and call to corporate office AN APPOINTMENT, Human Dynamics DO NOT ENTER Sophisticated client contact THIS PLANT. Client contact had autonomy in large company MO EXCEPTIONS Honorable purchaser created high trust environment Value creation opportunity generated corporate support Milestones - See timeline Obstacles Lack of sewer capacity Zoning resistance Environmental issues Soils Issue 13

14 Global Building Material Manufacturer (GBMM)Timeline - Contract 8114_ Buyer Selected 11/26 Contracted for 11/30 Closing 8/27 2n Amndnt w/$500k price change for 3/31 Closing 3/24 3,d Amndnt for 4/16 Closing 4/16 Closing 8/5 Developers Intervie 2 Global Building Material Manufacturer (GBMM)Timeline - Zoning 11/12 1 st mtg. W/N'bors 14

15 Global Building Material Manufacturer (GBMM)Timeline - Other 6/20 Use Study Complete 1/20 Environmental Issue Resolved 1/28 Sewer Agreement W/City 2/15 Hired 1 3 Ed Riggins 2016 Global Building Material Manufacturer (GBMM)Timeline - Overall 11!26 Contracted for Closing 8114 Bum Selected Artindn1 or 466 Clo6n Fed Zoning 2 15

16 Global Building Material Manufacturer (GBMM) Lessons Learned Pursue the Assignment not the Deal The Financial Guys Want Linearity, but Deals are Organic Independent Validation Adds to Credibility The Owners Motto: MORE is better than LESS NOW is better than LATER FOR SURE is better than MAYBE In an Environment of Imperfect Information: Decisions still required Perfecting the Information Requires Resources Violated Expectations Cause Stress There Will be Budget Contingencies and/or Game-Playing Complexity is FUN if you have Experience ALL SALESMEN IF YOU DON'T HAVE AN APPOINTMENT. DO NOT ENTER THIS PLANT. 140 EXCEPTIONS. yj 01;.7.,,:r_ alainsli5 What's the Lesson? Time Money WNW= GIG SOO G161I LPS 15.0 GB1114 /LC LPS GIG ILC SLAT MIMI 11.0 SLAT o.o 1" Pursuit" aexecutio n 40.0 _50.0'1 00 $100 $150 $200 $250 $300 Fee ($1,000) 0 Ed Riggins

17 High Ranking Contacts 10 Multi-Transaction Client 9 Active Repeat Client 8 Closed Transaction 7 Written Exclusive 6 Verbal Agreement 5 Need Identified 4 Recognition 3 Personal Meeting 2 Phone Contact 1 Identity Confirmed Low 0 Ed Riggins 2016 Qualifying Contacts High Low High Fee Potential 17

18 Qualifying Matrix ru J High Buddy Ideal Client lc C 0 0 Low Waste of Time Long Shot Low Fee Potential High ra _1 (ID _NC (13 High Qualifying Matrix Buddy Ideal Client GIG " GB 3 - LPS 4 - SLAT 5 - ILC o_ Low 0 Waste of Time Long Shot Low Fee Potential High 18