NATIONAL BROWNFIELD CONFERENCE APRIL 2011 A Reverse Site Selection, End User Focused Strategy for Brownfield Redevelopment

MODERATOR Rayo Bhumgara President Sustainable Strategies 2050 p: (617) e: w:

SPEAKERS Chris Steele (end user perspective/implementation of reverse site selection) Chris Steele (end user perspective/implementation of reverse site selection) Mika Brewer (owner perspective) Mika Brewer (owner perspective) Sam Stephens (community perspective) Sam Stephens (community perspective) Rich Heany (build to suit developer perspective) Rich Heany (build to suit developer perspective)

If You Clean Them, Will They Come?

FACTORS IMPACTING THE REAL ESTATE MARKET FACTORS IMPACTING THE REAL ESTATE MARKET Global economic growth/job growth Global economic growth/job growth Capital Flows Capital Flows Federal/State/Local budgets Federal/State/Local budgets Energy Prices Energy Prices Supply/demand equilibrium Supply/demand equilibrium

TRENDS CREATING SURPLUS PRODUCT Manufacturing declines resulting in surplus industrial assets/land Manufacturing declines resulting in surplus industrial assets/land Internet shopping allows for direct factory to consumer distribution, with less need for warehouse space and retail outlets Internet shopping allows for direct factory to consumer distribution, with less need for warehouse space and retail outlets Outsourcing of jobs overseas and home based freelancers lowers overall demand for office space Outsourcing of jobs overseas and home based freelancers lowers overall demand for office space Oversupply of product in most asset classes has created high vacancy rates Oversupply of product in most asset classes has created high vacancy rates

CHALLENGES PUTTING DOWNWARD PRESSURE Financial Markets Financial Markets Land Valuations/Appraisals Land Valuations/Appraisals Exit Strategy/User Commitments Exit Strategy/User Commitments Sellers waiting for market recovery (unless forced to sell due to mortgage obligations or other drivers) Sellers waiting for market recovery (unless forced to sell due to mortgage obligations or other drivers) Pricing of existing assets well below replacement costs (forced sale of troubled assets will establish corrected new pricing levels) Pricing of existing assets well below replacement costs (forced sale of troubled assets will establish corrected new pricing levels)

LET’S TAKE THE DISCUSSION BEYOND THE PHYSICAL ATTRIBUTES/CHALLENGES OF A BROWNFIELD PROPERTY

TO A BROADER UNDERSTANDING OF HOW YOU GET A USER/TENANT TO LOCATE AT A BROWNFIELD PROPERTY

Today’s Town Hall Session How do users make site selection decisions? How do users make site selection decisions? How do owners position and market their properties? How do owners position and market their properties? How do economic developer’s create value and structure incentives to attract users? How do economic developer’s create value and structure incentives to attract users? How do build to suit developers put the pieces together? How do build to suit developers put the pieces together?