What’s Now Driving Commercial

Real Estate Decisions

OCCUPANT

EXPERIENCE

2

GREEN BUILDING ADOPTION INDEX

Certification Growing Over Time

2005

Total sq. ft. of Green Buildings 5.6%

Total # of Green Buildings 1.5%

Total sq. ft. of ENERGY STAR Labeled 5.1%

Total # of ENERGY STAR Labeled 1.3%

Total sq. ft. of LEED Certified .40%

Total # of LEED Certified .14%

2015

39.4%

13.2%

30.3%

10.2%

19.4%

5.1%

3

GREEN BUILDING ADOPTION INDEX

But It’s a Big Building Phenomena

Under 100K 100-250K 250-500K 500K+

Total sq. ft. of Green Buildings 7.0% 26.4% 67.1% 76.0%

Total # of Green Buildings 4.5% 24.4% 54.6% 62.3%

Total sq. ft. of ENERGY STAR Labeled 5.1% 20.7% 46.8% 50.3%

Total # of ENERGY STAR Labeled 3.1% 19.2% 39.6% 43.5%

Total sq. ft. of LEED Certified 2.1% 8.8% 39.9% 50.7%

Total # of LEED Certified 1.5% 7.9% 29.0% 38.8%

4

OCCUPANT EXPERIENCESpaces for Social Interaction Increasing in Importance, Particularly In the Workplace

Spaces for Social Interaction Are Factors

Human Resource Executives Use When

Selecting Workspaces

66% currently consider this in making

leasing decisions today

Even more (up to 75%) expect this will be

considered in the future

Architects are recognizing increased need:

11% more expect to do this activity by 2016

versus today, increasing to 70%

Influence beginning with the

Millennial Generation?Source: McGraw-Hill Construction 2014

5

OCCUPANT EXPERIENCE

Benefits Reported by Owners on Impact of Specific Design/Construction

Decisions on Occupant Health

HEALTHCARE COSTS

47% of owners report cost

reductions— ranging anywhere

from less than 1% to over 5%, but

many (52%) don’t know exactly

OCCUPANT PRODUCTIVITY

21% of owners report

improvements of 1% or more,

but most (56%) don’t know the

impact exactly

EMPLOYEE SATISFACTION/

ENGAGEMENT

66% of owners report improvement,

with over 34% reporting a high level

of improvement

ABSENTIISM

56% of owners report

reductions— at varying

ranges of employee

absenteeism

$

Source: McGraw-Hill Construction 2014

6

7

Carnegie Mellon University School of Architecture,

2008

U.S. DOE and

Rocky Mountain

Institute, 2010

UCLA Institute

of the Environment

& Sustainability,

2012

Improved indoor air quality in green buildings increased productivity 0.5-11%; access to daylight Increasedproductivity 5-15%

Miller, Pogue, Gough and Davis, 2009

54.5% reported employees more

productive and 45% less sick in

LEED or ENERGY STAR building

Energy-efficient improvements to

lighting and HVAC systems generally

make employees more comfortable and

productive

Companies that voluntarily adopt green practices and standards have employees who are up to 16% more productive

8

OCCUPANT EXPERIENCE

Perception

If my organization had more information on the effect of buildings on “employee productivity,” it would impact our decisions regarding real estate and space design.

829

222

299

90

Strongly Disagree Disagree Neutral Agree Strongly Agree

60% Positive

9

OCCUPANT EXPERIENCE

Perception

To what degree do you think these factors would have an impact on employee productivity?

Rank Score Green Building Feature

1 2.2 Access to natural light and external views throughout the workplace

2 1.9 Individual control over thermal comfort

3 1.7 Places for social interaction in tenant space

4 1.6 Proximity/walking distance to shops and services

5 1.6 Green space or garden space (e.g. green roof) adjacent to building

6 1.5 Places for social interaction in my building.

7 1.3 Ability to open windows/use natural ventilation for cooling

8 1.3 Public Transportation within 1/4 mile

9 1.2 Green (non-toxic) cleaning chemicals

10 1.1 Consistent low level noise from machinery and quiet collaboration

11 0.7 On-site (or proximity to) bike racks

12 -0.3 Noise from occasional enthusiastic collaboration by other nearby teams

NOTE: Scores range between -2 (negative impact) and 3 (substantial positive impact)

In-suite Off-site On-site

Workplace360The DTLA Journey

11

PREVIOUS SPACE

12

CREATED CONNECTIONS AMONG TEAMS

• LEED Platinum Certified Building

• LEED Gold Certified Tenant Improvements

• WELL Certified Tenant Improvements

• Red List compliant materials

• Outdoor air flow at all times

• UV treatment & activated carbon

filtration

• CO2 and relative humidity monitoring

• Circadian Lighting System™

Biophilia

(indoor landscaping)

Inviting stairsNutritional snacks

Nutrition &

yoga classes

Acoustic

dampening walls

Treadmill desk

Stretch room

Ergonomic workstations

Lumbar supporting core floor

Kybun

standing pads

Wellness literature

Hydration station

Antimicrobial surfacing

EMF shielding

• Aromatherapy

• Well cleaning protocol

FIRST WELL™ CERTIFIED OFFICE

14

MARKET REACTION

5–10 TOURS A DAY

4,000+ CLIENTS AND COMMUNITY

LEADERS HAVE TOURED

THE SPACE

106 publicationsOF ARTICLES COVERING

OUR STORY:

97,907,977 IN CIRCULATION

210,948,819 IMPRESSIONS

15

EMPLOYEE REACTION

WELL Certified Office Employee Survey Results

83% Feel More Productive

87% Said the New Environment Has

Helped Them Generate Business

92% Said the New Space Has Created a

Positive Effect On Their Health and Well Being

93% Said They Were Able to More Easily

Collaborate with Others

94% Said the New Space Has a Positive

Impact on Their Business Performance

100% Agree that Clients Are Interested in

Their New Way of Working

For more information regarding this presentation please contact:

Dave PogueGlobal Director of Corporate Responsibilitydave.pogue@cbre.com