1. How to Successfully Manage Tenants Mike Patton – National Account Executive, Yardi Systems Ivy Owen, PCED, EDFP, Executive Director, Fort Chaffee Redevelopment Authority, Ft Smith AR Fran Gonek, Chief of Business Operations, Presidio Trust Robert Kleiner, Facilities Chair, Board of Trustees for the Bay School of San Francisco

2. Managers Perspective – Chaffee Crossing

3. FCRA Leasable Property Building inventory: – FCRA owns 90 buildings – Lost 297 in fires – 65 tenants, 70 buildings leased – 20 available for lease have restrictive features

4. FCRA Leasing Data Buildings*Tenants*% LeasedIncome* 2010 72 61 84.7$41,395 2011 75 61 81.3$42,376 2012 74 61 82.4$44,273 2013 75 65 86.7$38,571 2014 YTD 64 58 90.6$31,165 *Average per month Note: Increases/decreases in buildings due to improvements and storm damage.

5. Challenging Properties Rough buildings, warehouses, barracks Non-Climate Controlled No Sewer / Water Some office space

6. Ideal Tenants for Challenging Properties Tenants who LOVE them use them for: Landscaping businesses Plumbing businesses Electrical businesses HVAC businesses Rough storage Recreational facilities Co-op space

7. Ideal Tenants for Challenging Properties From this…..

8. Ideal Tenants for Challenging Properties To this…..

9. Recruiting Tenants, Initial Lease Negotiations and Making the Tenant Feel Secure Tenant recruitment – Website and newsletter listings – Make Chambers, realtors and other tenants aware of availabilities Initial lease negotiations – Thorough, complete explanation of the term of the lease – Discuss automatic rent increases included in the lease What happens if tenant’s leased property is sold to a third party? – How are they protected? – What are their options? – What is the new owner required to do?

10. Keep Tenants Informed and Involved in the Redevelopment Follow Business Retention and Expansion practices – Annual on-site visits to uncover needs/concerns – Follow up after visits with responses and solutions – Periodic newsletters – Annual tenant meetings, ex: wine and cheese get- togethers Goal: Make them feel wanted

11. Leased Property Maintenance and How It Affects Attitudes Ongoing maintenance is a necessity Maintenance requests by tenants should be handled promptly Clear and timely communication Protect the LRA reputation

12. Lease Renewals And How To Handle Rent Increases Lease Renewals – Term negotiations – Handle carefully, explain fully – Consider future implications Terminations, non-renewals When LRA is dissolved, who will be lessor? Rent increases – If not originally spelled out in the lease, how is the increase determined? – What’s it based on? – How do you justify it?

13. Moving Lessees into Property Ownership as the Redevelopment Grows Converting lessees to buyers should be a strategy of the LRA Develop lists of current lessees that are potential buyers If selling the property is more valuable to the LRA than leasing, LRA should encourage and complete the transition—don’t delay! Structure leases to include an Option to Purchase for the term of the lease, if appropriate

14. From Tenants To Owners

15. Managers Perspective – Presidio Trust

16. 1,491 acres 433 historic buildings 375 rehab historic buildings (85%) 991 acres of open space 300 acre forest planted by the U.S. Army 24 miles of trails 330 native plant species 7,000 people living and working in the park 200+ tenant organizations THE PRESIDIO TODAY a national treasure at the golden gate

17. An effective funding model More than $1.6 billion invested in the Presidio between 1998 and 2013 Public taxpayer support ($348 million) Private funds - Building investment ($570 million) - Leasing revenue ($714 million) - Philanthropic gifts (>$35M) $4 of private investment for every $1 from taxpayers

18. STRUCTURE Maintenance Residential Non-Residential Development Business Operations Presidio Trust (Landlord) Work Orders On Call Turns Preventive/Maintenance Cyclic Maintenance Tenant Relations Reporting Strategy Tenant Relations Reporting Strategy 3 rd Party Prop. Management Leasing 2 million gsf 1,150 units Leasing Negotiate Leases/ Development Terms Project management Reporting Strategy 2 million gsf 83 Buildings 138 Tenants Lease 500+k gsf 57 Buildings

19. Follows terms of lease Pay rent/ SDC Preservation maintenance plan Support of Trust staff as they perform their duties Follows building and park rules Tenant expectations Sustainability program Transportation Demand Plan (TDM) Parking Shuttle Park ambassadors/ stewards Resources ($) are used for greatest good Business Requirements Mission Participation Community Participation Volunteer Tenant activities Neighborhood meetings Clean up days Community garden Park Activities Off The Grid Film in the Fog Bike to Work Day Officer’s Club Support Park Partners Retail operations National Park Service

20. $47.5M annual revenue Occupancy 97% Avg. market rent $3,945 FY 2014 turnover 14% 26% of Presidio tenants have kids compared to 15% in the city of San Francisco 45% of tenants have leased at least 5 years RESULTS $22M annual revenue $7M annual SDC Occupancy 97% Multi tenants avg. rent $42/sf Developer avg. rent $7/sf Less than 20k sf of available space 70% of currently leased space has a minimum duration of 15 years. Residential Non-Residential

21. FOLLOW US www.presidio.gov @presidiosf

22. Tenant Perspective – Bay School of San Francisco

23. The Bay School of San Francisco Independent High School Tenant of the Presidio since 2004 Over 60,000 sq ft – one of the largest single buildings in the Presidio

24. Successful Tenancy Understanding & Opportunity Mutual Trust & Flexibility Community

25. Understanding & Opportunity Originally an army barracks built in 1912

26. Understanding & Opportunity

28. Mutual Trust and Flexibility Tenant & Landlord have each others best interests in mind Both are willing to be flexible to achieve goals

29. Mutual Trust & Flexibility

30. This is our Community

31. Technology Trends and Tools

32. Looking (Leaning) Forward Changes are impacting property management. – Work Force – Tenants Technology Trends – Mobility – Cloud – Social media – Business intelligence – Millennial traits & habits What you can consider to be effective with both constituencies.

33. Trends MobilityCloud

34. Trends Social Source: www.huffingtonpost.com Source: http://reports.informationweek.com Big Data

35. What’s the Impact Tenant Enablement – Electronic Payment – Maintenance Initiation Management Enablement – Automated Workflow Financial Information Facilities Management