The Navy Yard Proposal

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THE AS S E T: S T O R E H O U S E 9

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THE AS S E T: T H E P O W E R H O U S E S WOC ANALY S IS

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CAS E S TUDY A | B R O O K LY N N AV Y Y A R D

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CAS E S TUDY B | P H I L A D E L P H I A N AV Y Y A R D 21

MAR KE TING S TR ATEGY

COMPE TITIV E DE VE LOPMENT

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COMPE TITIVE DE VE LOPMENT MAP

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CHAR LE S TON AR E A LE ASE COMPS OFFICE MAR KE T R EPORT

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LE E & AS S OCIATE S NATIONAL REACH THE LE E NE TWORK

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MAR KE T R E S E ARCH

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OUR R E S OUR CES

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MAR KE TING PORTFOL IO THE E XE CUTION TEAM E NGAGE ME NT TE RMS

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EX ECU T IV E

S UMMAR Y

Thank you for allowing Lee & Associates Charleston the opportunity to present our Real Estate Services and qualifications for the Charleston Navy Yard project. Without people, buildings are empty shells which collect dust, pests, mold, mildew, vandals, and worse. They are dark and lifeless, void of purpose and character. That’s where Lee & Associates comes in. The Lee team serves as the bridge connecting people with properties. We take time not only to listen and understand your needs, but also to research the market and your property to match it with the ideal tenant. This connection is unique for every property, and our passion for facilitating this process is what sets us apart from other real estate providers. The Charleston Navy Yard is a unique project unlike any other in the region. It is a long-term vision which will require years of collaboration and effort to bring it to life. This proposal outlines the partnership between Lee & Associates, Weaver Capital and WECCO Development to bring this vision to reality. We will discuss the project, the market, our team, proven track record and strategic plan to breathe new life into the historic Navy Yard. We look forward to showing you how we place

“PEOPLE FIRST, PROPERTIES SECOND!”

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PROJ ECT

OV E R VI E W

The Navy Yard at Noisette HISTORY The history of the Charleston Navy Yard begins in 1901, when the facility began operations as a drydock. The Yard was the result of tireless lobbying by Charleston Mayor J. Adger Smythe and Senator Benjamin Tillman, who succeeded in persuading the 56th Congress to award the city with a naval contract. After failing to recover from the economic devastation of the Civil War, Charleston’s hopes for a brighter future were pinned to the success of the Navy Yard. Construction of the Yard developed over decades, with completion of the first dry dock in 1907 and a powerhouse to supply electricity to the dock in 1909. Officers’ quarters, railroad facilities, the storehouse and administrative buildings were all in place by 1910. Ship building and repair began on gunboats,submarine chasers, tugs, barges, and patrol cutters for the Coast Guard. In the peacetime before the beginning of the First World War, The Yard employed 1,700 people. The decades to follow solidified Charleston’s military presence in modern American history, with growth and employment exploding during World War I and World War II. As the global threat increased in the First World War, employment at the Yard tripled to 5,600 and peaked at 26,000 during World War II. Per capita income for shipyard employees in 1941 was three times that of the state average, and at least 55,000 residents migrated to Charleston to participate in the boom. The surrounding neighborhoods expanded to accommodate them and the region enjoyed the largest growth period since the antebellum era almost a hundred years earlier. The Navy Yard is a central force in Charleston’s modern history. It pulled a beautiful but crumbling city from the depression of civil war, fueled new life and prosperity into the economy, played a vital role in the American victory in Europe, survived the Great Depression and contributed to the desegregation of the workforce in a resistant Southern city. In all, the base employed hundreds of thousands of people, built 256 vessels and poured millions of dollars into the local economy.

FUTURE The future of the Navy Base will ring true to its origins. From its inception it was meant to be a catalyst for growth, and through the years it rose to accept the national charge to defend liberty. Just as the creation of the base saved a drowning city from ruin, so now will the Navy Base fill the need for the growth flooding to Charleston in present day. The demand for jobs is at an all time high in the region, and real estate is posting record low vacancies. Positioned on the bank of the Cooper River and accessible by all three counties, the Navy Base is poised to be an epicenter of growth. Its central location will alleviate the ever growing commuter traffic problem, with shorter commute times than downtown or the surrounding suburbs. The Yard will draw interest for its proximity to the growing Park Circle district, which continues to gain popularity and draw new residents and business. The Yard’s location between the booming “neck’ of the Charleston peninsula, which continues to push north, and its position south of the growth up the I-26 corridor in Nexton and Summerville, it is clear that the Navy Yard could not be more well-positioned to capitalize on growth both in geography and timing.

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T HE

A S S ET

•

S T ORE H OUSE

8

8 STOREHOUSE ROW is a two story office building totaling 54,000 square feet. The building can be renovated to accommodate general office or retail users.

PARCEL ID: 400-00-00-055 ADDRESS: 2154 Noisette Blvd., North Charleston, SC 29405 COUNTY: Charleston TYPE: Office RBA: 54,000 SF

TENANCY: Office, Retail STORIES: 2 TYPICAL FLOOR: 27,000 SF LOT ACREAGE: 2.17 Acres YEAR BUILT: 1903

Storehouse

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T HE

A S S ET

•

S T ORE H OUSE

9

9 STOREHOUSE ROW is a four story building totaling 78,000 square feet. The building can be renovated to accommodate light industrial, research and development, or general office use.

PARCEL ID: 400-00-00-055 ADDRESS: 2154 Noisette Blvd., North Charleston, SC 29405 COUNTY: Charleston TYPE: Office/Flex RBA: 78,000 SF

TENANCY: Office, Light Industrial STORIES: 4 TYPICAL FLOOR: 18,000 SF LOT ACREAGE: 2.17 Acres YEAR BUILT: 1917

Storehouse

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THE ASSET • THE POWER HOUSE

1 9 7 5 N O R T H H O B S O N AV E N U E known as The Power House, is a historically unique building totaling 24,000 square feet. The building can be renovated to accommodate general office, experiential retail or gathering space.

PARCEL ID: 400-00-00-142 ADDRESS: 1975 N. Hobson Ave., North Charleston, SC 29405 COUNTY: Charleston TYPE: Office/Retail

RBA: 24,000 SF TENANCY: Office, Retail STORIES: 1 LOT ACREAGE: 2.25 Acres YEAR BUILT: 1909

The Power House

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S W OC

A N A LY S I S

Strengths » Centrally located within I-526 » Ample land for onsite parking » Historic character and appeal » Strong area growth and development projection

Weaknesses » Lack of road visibility for signage » No walkable food or amenities » Lack of infrastructure

Opportunities » New renovation: first time occupancy since closure of the Naval Base » Capitalize on growth and attraction of Park Circle » Located in the path of planned Bus Rapid Transit system » Increased activity with opening of adjacent SCPA Hugh Leatherman Terminal

Challenges » In a ‘path of progress’ neighborhood » Competitive development in the Upper Peninsula/Neck area » Speed to lease up dependent on environmental and renovation » Covering construction cost 15


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CA S E

S T U DY

A

Brooklyn Navy Yard

B R O O K LY N N AV Y Y A R D Established in 1801 Large-scale development began in 2011 300 Acres | 2 million + SF Mix of office, light industrial, manufacturing

NOTABLE TENANTS: WEWORK 318,000 SF of Office DUGGAL VISUAL SOLUTIONS 200,000 SF of Industrial RUSS & DAUGHTERS FOOD HALL 14,000 SF of Industrial/Retail

For 165 years, the Brooklyn Navy Yard served as an active shipbuilding facility for the United States Navy. Production began shortly after the American Revolution and remained operational until after World War II. After being abandoned several times throughout its history as a naval base and its eventual closure, the yard slowly began to attract commercial activity in the 1990s. In 2011, the Brooklyn Navy Yard Development Corporation began a large-scale program to redevelop the Navy Yard. Renovations were planned for the Green Manufacturing Center, Admiral’s Row, and the Brooklyn Naval Hospital. By 2015, more than 330 businesses were located at the Yard, employing more than 7,000 people. Today the Yard continues to grow with over $700 million in expansions still in the planning stages. The Yard serves as an incubator for innovation in manufacturing, life sciences and technology. 17


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CA S E

S T U D Y

B

Philly Navy Yard

PHILADELPHIA N AV Y Y A R D Established in 1776 Large-scale development began in 2000 1,200 Acres | 7 million + SF Mix of office, industrial, manufacturing, research & development tenants

NOTABLE TENANTS: URBAN OUTFITTERS 360,000 SF of Office GLAXOSMITHKLINE 205,000 SF of Office TA S T Y B A K I N G C O M P A N Y 45,500 SF of Industrial A X A L TA C O AT I N G S Y S T E M S 135,000 SF of Industrial

The Philadelphia Navy Yard can trace its origins as far back as the birth of our nation. Founded in 1776, it served as a shipyard for two centuries and narrowly escaped multiple closure attempts before eventually retiring as a naval base in 1996. It did not remain dormant for long though, as the Philadelphia Industrial Development Corporation gained control of the 1,000 acres just four years later and began a master plan to revitalize the Yard. The launch into the twenty-first century saw the yard rebound as an office park employing over 12,000 people in 2017 at 150 companies. A large portion of the $750 million poured into this site has been spent renovating historically significant naval buildings. Today the Yard is in the midst of even more expansion plans up to 13.5 million square feet of office, industrial, and laboratory space. 19


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M A RK ET ING

S T R ATE GY

D I S T I N G U I S H T H E P R O P E R T Y A N D E S TA B L I S H T H E S T O R Y Your brand strategy is how, what, where, when and to whom you plan on communicating your message. Our marketing team will execute based on desired positioning using our branded marketing collateral. The passion and creative efforts of our marketing professionals results in beautiful and engaging marketing pieces that set your properties apart. For properties this unique, telling the story and communicating the vision to potential tenants is of the utmost importance. We recommend the following marketing materials for this property:

• Unique property websites • State of the art brochures and listing materials • Targeted advertising in relevant publications

• Detailed social media strategy and campaign • Drone and aerial photography and video

I D E N T I F Y TA R G E T S F O R T H E P R O P E R T Y I N T H E M A R K E T At Lee & Associates, we are immersed in the commercial real estate market and deal regularly with national credit tenants searching for a location within the market. We will use our national platform and relationships to ensure your properties are presented properly to users nationwide. After evaluating your properties, we see the following users as ideal target tenants:

• Research & Development • Light Industrial/Manufacturing • Office and General Business • Technology

• Life Sciences • Warehouse/Flex • Experiential Retail

C O M M U N I C AT E T H E P R O P E R T I E S ’ U N I Q U E F E AT U R E S I N T H E M A R K E T Live presentation will be an effective tool to communicate the vision of these properties. We will conduct a tour of local brokerage houses, as well as present the properties at trade shows and conferences. Targeted email campaigns are used to market your properties to cultivate specialized contact groups with the sole purpose of introducing your properties and providing the information they need to make a “next step” decision.

P R O V I D E VA L U E A D D C O N T E N T T O P R O S P E C T S We constantly fine tune tenant prospecting efforts, ensuring greater relevancy and increased performance. We will follow up on email campaigns with phone calls and meetings in addition to harvesting and contacting website visitors of your unique property websites. We find that a clear call-to-action in the marketing you use does more to determine your success than any other factor. Other tools such as onsite events and broker open houses will be held throughout the leasing process to keep the properties top of mind. 21


COM PET IT IV E

D EVE LOPME N T

Under Construction SPECULATIVE & BUILD TO SUIT CONS TR UCTION 2019 | 50,000 SF & ABOVE

22 WESTEDGE

22

75 PORT CITY LANDING

320 BROAD STREET

Charleston, SC, 29403

Charleston, SC, 29401

Status: Delivering 2019 RBA: 125,000 SF | # Floors: 5 Asking Rate: $38.50/SF, Full Service Available SF: 50,000 SF Tenant(s): Serendipity Labs, Merrill Lynch

Status: Under Construction RBA: 93,000 SF (40,000 SF Office) # Floors: 3 Asking Rate: $40.00/SF, Full Service Available SF: 40,000 SF Tenant(s): The Beach Company

Charleston, SC, 29403

P O R T S I D E AT F E R R Y W H A R F

Status: Delivering 2020 RBA: 154,998 SF | # Floors: 8 Asking Rate: $39.50/SF, Full Service Available SF: 50,000 SF Tenant(s): Harbour Club/ BNG Hospitality, MUSC, Charleston Orthodontic Specialists, Heritage Trust Bank, City of Charleston

THE JASPER


COM PET IT IV E

D EVE LOPME N T

Proposed Construction SPECULATIVE & BUILD TO SUIT CONS TR UCTION 2019 | 50,000 SF & ABOVE

MEETING ST @ ALGONQUIN RD

838 MORRISON DR

Charleston, SC, 29405

Charleston, SC, 29403

Status: Proposed RBA: 110,000 SF | # Floors: 5 Asking Rate: $36.00/SF, Full Service Available SF: 110,000 SF Tenant(s): None

Status: Proposed RBA: 170,000 SF | # Floors: 9 Asking Rate: $40.00/SF, Full Service Available SF: 170,000 SF Tenant(s): None

T H E B E LV I D E R E

M O R R I S O N YA R D

1074 MORRISON DR

999 MORRISON DR

Charleston, SC, 29403

CHARLESTON TECH CENTER

Status: Proposed RBA: 113,000 SF | # Floors: 5 Asking Rate: $40.00/SF, Full Service Available SF: 113,000 SF Tenant(s): None

Status: Proposed RBA: 63,000 SF | # Floors: 6 Asking Rate: $40.00/SF, Full Service Available SF: 60,000 SF Tenant(s): Charleston Digital Corridor

Charleston, SC, 29403

23


MEETING ST @ ALGONQUIN RD

1074 MORRISON DRIVE

T H E B E LV I D E R E

Charleston, SC, 29403

22 WESTEDGE

Charleston, SC, 29405

North Charleston

Danial Island

Charleston, SC, 29403

320 BROAD STREET THE JASPER

Charleston, SC, 29401

We s t A s h l e y

James Island Johns Island 24

Downtown Charleston


999 MORRISON DRIVE

CHARLESTON TECH CENTER

Charleston, SC, 29403

COMPETITIVE DEVELOPMENT MAP

838 MORRISON DR M O R R I S O N YA R D

Charleston, SC, 29403

Mt. Pleasant 75 PORT CITY LANDING

P O R T S I D E AT F E R R Y W H A R F

Charleston, SC, 29403

Sullivans Island 25


26


CHARLESTON AREA LEASE COMPS

115 FAIRCHILD STREET

235 MAGRATH DARBY BLVD

216 SEVEN FARMS DRIVE

Sign Date: June 2018 Size: 29,000 SF Lease Rate: $36.50/SF, Full Service Lease Term: 10 years Tenant: Serendipity

Sign Date: April 2019 Size: 23,000 SF Lease Rate: $29.50/SF, Full Service Lease Term: 10 years Tenant: JW Aluminum

Sign Date: October 2018 Size: 22,000 SF Lease Rate: $38.00/SF, Full Service Lease Term: 7 years Tenant: Choate Construction

Sign Date: January 2019 Size: 11,600 SF Lease Rate: $29.00/SF, Full Service Lease Term: 10 years Tenant: HITT Construction

146 FAIRCHILD STREET

22 WESTEDGE STREET

4 9 2 2 O ’ H E A R AV E N U E

1 3 6 2 M C M I L L A N AV E N U E

75 PORT CITY LANDING

P O R T S I D E AT F E R R Y W H A R F

Charleston, SC, 29403

CIGNA BUILDING

Daniel Island, SC, 29492

WESTEDGE

Mt. Pleasant, SC 29464

GARCO PHASE III

Daniel Island, SC, 29492

STOREHOUSE 11

Daniel Island, SC, 29492

Charleston, SC, 29403

N.Charleston, SC 29405

N.Charleston, SC 29405

Sign Date: April 2018 Size: 10,500 SF Lease Rate: $22.00/SF, Full Service Lease Term: 5 years Tenant: Sprinturf

Sign Date: February 2019 Size: 21,000 SF Lease Rate: $37.60/SF, Full Service Lease Term: 10 years Tenant: The Harbour Club

Sign Date: March 2019 Size: 12,000 SF Lease Rate: $30.00/SF, Full Service Lease Term: 15 years Tenant: Charleston Chamber of Commerce

Sign Date: May 2019 Size: 9,170 SF Lease Rate: $21.00/SF, Full Service Lease Term: 5 years Tenant: Modus21

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OF F ICE

M A RK ET

R E POR T

2019 OFFICE REPORT SECOND QUARTER SUMMARY M A R K E T I N D I C AT O R S

O C C U PA N C Y

Office rental rates in Charleston are the highest in the state, averaging about $26/SF. Strong absorption observed throughout most of the cycle allowed landlords to push rents above their prior 2018 rates which are expected to grow by almost 30% this cycle. Investment has been elevated in Charleston’s office market this quarter resulting in more than $300 million in sales volume for nearly 200 transactions.

ABSORPTION

R E N TA L R AT E

2019 CHARLESTON ECONOMY SPOTLIGHT

3%

200 100

2%

0

1%

-100 -200 -300

Q418

-400

Q119

Net Absorption (SF)

Q219 Net Deliveries (SF)

Vacancy

2 Q 2 0 1 9 O F F I C E S TA N D I N G S B Y S U B M A R K E T

#3 Best State In The U.S. To Do Business (Source: Chief Executive)

874,615 SF Office Space Under Construction (Source: CoStar)

30,606,895 SF Existing Office Inventory (Source: CoStar)

The Charleston-area economy was one of the nation’s top performers in 2018.

(Source: Federal Bureau of Economic Analysis)

Thousands (SF)

Driven by the expansion of our booming port, Charleston continues to experience an influx of business and steady population growth. Charleston offers the workforce and talent companies need to succeed and grow. Since 2010, Charleston’s MSA labor pool has grown three times faster than the U.S. average and twice as fast as South Carolina’s average. Major corporations such as Boeing, Volvo, and Daimler have invested in the market drawing more companies to flock to Charleston. Because 7% 700 absorption rates are at a high and vacancy rates continue 600 6% to fall, Charleston has seen considerable interest in newly 500 5% developed and constructed office space. The current 400 4% vacancy rate is roughly 6%. 300

To t a l Buildings

To t a l S F

Direct Vacant SF

% Vacancy

YTD Net Absorption (SF)

YTD Deliveries (SF)

# SF Under Construction

Quoted Rates

Dorchester County

414

1,961,932

60,340

3.1

7,451

10,331

33,000

$21.76

Downtown Charleston

460

5,897,680

310,621

5.1

(103,728)

0

229,998

$36.52

3

35,233

0

0

0

0

0

$24.78

East Islands/Mt. Pleasant

441

4,132,858

296,298

7.3

(21,282)

0

141,192

$27.84

Greater Charleston

578

5,167,238

239,155

4.4

1,184

32,119

240,100

$25.37

James Island/Folly Beach

143

541,879

34,511

6.3

(23,555)

0

0

$25.36

North Charleston

751

9,918,033

715,057

7.1

(131,550)

28,402

182,472

$23.61

Outlying Berkeley County

363

2,577,300

171,051

5.9

4,856

0

30,000

$21.23

W Charleston

29

96,881

2,000

2.1

(796)

0

0

$21.39

West Island

74

277,861

12,055

4.3

(5,310)

0

17,853

$23.82

3,256

30,606,895

1,841,088

4.56

-262,110

70,852

874,615

$25.17

Submarket

E Charleston County

Totals

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OU R

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NAT IONA L

R E ACH

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T HE

LEE

NETWOR K

LEE & ASSOCIATES IS THE LARGEST BROKER-OWNED COMMERCIAL REAL ESTATE FIRM IN NORTH AMERICA Every Lee & Associates office delivers world-class service to an array of regional, national, and international clients from small businesses and local investors to major corporate users and institutional investors. Our professionals combine the latest technology, resources and market intelligence with their experience, expertise and commitment to superior service to optimize your results.

Lee & Associates is the Largest Broker-Owned Commercial Real Estate Firm in North America

MARKET LEADER Specializing in market intelligence

ABILITY TO UNDERSTAND

Effective client communication

INTEGRITY

Shapes our culture and defines the character

WE SAVE YOU TIME

Creative problem solving skill sets and effective support

RELEVANT WORK

Seasoned agents with relevant transaction experience

AFFILIATE INTERNATIONAL RELATIONSHIP â–¶ AUSTRIA â–¶ BELGIUM

â–¶ FRANCE â–¶ IRELAND

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â–¶ POLAND â–¶ SLOVAKIA

INDUSTRY SPONSORSHIPS & ORGANIZATIONS

â–¶ SPAIN â–¶ TURKEY

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M A RK ET

RES E AR C H

Our dedicated market research and leasing associates efficiently provide clients with an up-to-date and projected perspective on the market landscape. By utilizing not only quantitative research methods, but qualitative methods as well, we are able to successfully identify and paint the picture of the ever-changing landscape and future direction of industrial real estate in Charleston. We are data driven and strive to stand out from the rest. We have implemented various Lee & Associates only research reports, such as our Charleston Crane Tracker, that provide up-to-date market information that is drawn manually from our research team. HAMPTON PARK

1Q

Market Indicators O C C U PA N C Y

2Q18

3Q18

4Q18

FOURTH QUARTER SUMMARY Vacancy rates rose for the third straight quarter to 6.3% at years end, however, this is still far lower than the national average of 9.8%. Charleston Office rents remain the highest in South Carolina at roughly $27.00/ SF. Office development increased considerably throughout the year with

CITADEL

the help of 65,000 SF Gateway Mount Pleasant being delivered in October. Charleston’s booming economy continues to bring more investors to the area with more than $300 million trading by years end with the average cap rate at 6.9%.

Charleston has experienced an influx of new jobs due to population growth and the promising job market the lowcountry has to offer. Developers are working to keep up with the strong absorption and the low vacancy. Vacancy rates saw a steep decline from 6.3% at the end of Q4 2018 to 4.9%. Developers will deliver close to 29,000 SF in Q1 of 2019 with another 728,000 SF in the pipeline under construction.

O C C U PA N C Y

3Q18

4Q18

1Q19

ABSORPTION

With low vancancy rates and positive absorption, rental rates are at an all-time high averaging around $27.00/SF. The total Charleston office inventory is currently at 30,550,270 SF. Charleston’s booming economy continues to bring more investors to the area with $280 million trading hands in the past year, with the average cap rate at 7.6%.

THE CITADEL

CROSSTOWN

BRITTLEBANK PARK

3Q18

4Q18

3Q18

4Q18

3Q18

4Q18

R E N TA L R AT E

2Q18

3Q18

OS CR

R E N TA L R AT E

2018 Charleston Economy Spotlight

1014 St. Andrews Blvd

Largest Employment Industry: Trade, Transportation & Utilities

602,202 SF Office Space Under Construction (Source: CoStar) 3,226 Existing Inventory of Office Buildings (Source: CoStar) South Carolina Ranked #5 Top States for Doing Business (Source: Area Development Online)

FEATURED LISTING

(Source: NAICS)

FOR LEASE $33.75/SF

4Q18

2019 Charleston Economy Spotlight 2265 Clements Ferry Road

(Source: NAICS)

727,951 SF Office Space Under Construction (Source: CoStar)

1014 St. Andrews Blvd, or The Truluck Center, offers office tenants the unique opportunity to lease brand new, Class A space in the heart of West Ashley! All suites can be delivered turn key and provide users with hard to find amenities including ample free parking and great visibility. This exclusive property is in close proximity to downtown and major thoroughfares including: I-26, I-526, Savannah Hwy, Hwy 61, and Sam Rittenberg Blvd—making this location ideal for a wide variety of users.

30,550,270 Existing Office Inventory (Source: CoStar)

93% of SC’s Top Business Leaders Have a Positive Outlook on the Economy in 2019

ST

O

W

COLLEGE OF CHARLESTON

HISTORIC DOWNTOWN

MEDICAL DISTRICT

THE BATTERY

HAMMOND FIELD

10

99

BRISTOL MARINA

MEDICAL DISTRICT

(Source: SC Chamber of Commerce)

Beresford Creek Executive Center is a multibuilding office development with Building 400 completed 2019. The size of spaces are flexible, and build-outs can include an open office environment with minimal offices or a mix of mostly offices with a typical reception, conference room, work room, and break area. Landlord will build out the tenant space allowing a $40.00/SF allowance for construction of the interior of the premises above the building standard shell. There will be approximately 493 parking spaces.

960 Morrison Drive, Suite 400 | Charleston, SC 29403 | 843.747.1200 | lee-associates.com

960 Morrison Drive, Suite 400 | Charleston, SC 29403 | 843.747.1200 | lee-associates.com Information contained herein has been obtained from sources we deem to be reliable. While we have no reason to doubt its accuracy, we do not guarantee it.

PD

0V

,20

58

FOR LEASE $16.75/SF

PRICE: ............... $16.75/SF (Annual) SIZE: .................. 1,600-32,000 SF AGENTS: ........... Bob Nuttall, SIOR, CPM Pete Harper, CCIM Cameron Yost

Information contained herein has been obtained from sources we deem to be reliable. While we have no reason to doubt its accuracy, we do not guarantee it.

BRITTLEBANK PARK

RILEY PARK

ALBERTA LONG LAKE

ASHLEY RIVER

D

ASHLEY RIVER

00

,6

45

VP

« Custom Mapping

« Office Market Reports

CHARLESTON RANKED #1 US CITY

34

New Residents Move Each Day US Census Bureau

4x

Faster Labor Force Growth than the US Growth Rate US Bureau of Labor Statistics

$3.4

CHARLESTON

CRANE TRACKER Monitoring Construction in Charleston’s Industrial Market

960 Morrison Dr, Charleston, South Carolina, 29403 3

Prepared by Esri

960 Morrison Dr, Charleston, South Carolina, 29403

Latitude: 32.80598

Rings: 1, 3, 5 mile radii

Modeled after Kendall Square at MIT, the WestEdge Discovery District taps into the Medical University and Charleston’s explosive growth. As the numbers show, opportunity is boundless.

Great weather, miles of pristine beaches and waterways, a thriving arts and food scene, and warm, friendly people are just a few of the reasons why Charleston continues to garner awards and welcome thousands of newcomers each year— from across the country and around the world.

C O L D S T O R A G E O P P O RT U N I T I E S

Demographic Snapshot 2018

CHARLESTON: BOUNDLESS OPPORTUNITY

Renown for its architecture, award-winning restaurants, arts scene, and culture, this three-county region is home to more than 760,000 talented, passionate people and fast becoming a global destination for business and talent.

CHARLESTON AREA C O L D S T O R A G E O P P O RT U N I T I E S

MARION SQUARE

1Q19

Largest Employment Industry: Trade, Transportation & Utilities

PRICE: ............... $33.75/SF (Annual) SIZE: .................. 1,088-28,324 SF AGENTS: ........... Reid Davis, CCIM, SIOR Pete Harper, CCIM Cameron Yost

KING STREET

22 CANNON PARK

1Q19

FEATURED LISTING

2Q18

PLANNED HAGOOD/ MUSC CONNECTION

WESTEDGE

N

ABSORPTION

JOE RILEY PARK

FIRST QUARTER SUMMARY

Market Indicators

RAVENEL BRIDGE

HARMON FIELD

2019 OFFICE REPORT

VP D

2018 OFFICE REPORT

61,20 0

4Q

65,0 00 V PD

Billion in Economic Announcement

THE CORNER OFFICE

South Carolina Department of Commerce

63%

Incoming Population Has Some Post-Secondary Education US Census Bureau

Charleston’s Proposed and Under Construction Office Activity

#1

Mid-size City for Millennials US Census Bureau

Top 3

Workforce Development Program in US Area Development Magazine, Top States for Doing Business

Longitude: -79.94196 1 mile

Data for all businesses in area Total Businesses: Total Employees:

1 mile 652 7,109

Total Residential Population: Employee/Residential Population Ratio (per 100 Residents)Population

13,066 54

3 miles

3 miles 4,125 89,647

5 miles 5 miles 9,308 141,628

52,026 172

140,403 101

12,402

45,317

121,582

2010 Population 2018 Population

11,552 13,066

45,537 52,026

123,991 140,403

2023 Population 2000-2010 Annual Rate

15,562 -0.71%

58,445 0.05%

152,858 0.20%

2010-2017 Annual Rate 2017-2022 Annual Rate 2018 Male Population 2018 Female Population 2018 Median Age

1.50% 3.56%

1.63% 2.35%

1.52% 1.71%

47.0% 53.0% 32.3

47.8% 52.2% 30.4

48.1% 51.9% 36.1

2000 Population

In the identified area, the current year population is 13,066. In 2010, the Census count in the area was 11,552. The rate of change since 2010 was 1.50% annually. The five-year projection for the population in the area is 15,562 representing a change of 3.56% annually from 2017 to 2022. Currently, the population is 47.0% male and 53.0% female.

LOCATED ALONG THE WESTERN EDGE OF THE CHARLESTON Median Age PENINSULA AND THE BANKS OF THE ASHLEY RIVER, WESTEDGE The median in this area is 32.3, compared to NATURAL U.S. median ageBEAUTY, of 38.2. CAPITALIZES ONage THE AREA’S INHERENT Race and Ethnicity RECREATIONAL OPPORTUNITIES, AWARD-WINNING RESEARCH 2018 White Alone 29.1% HOSPITALS, SCHOOLS, COLLEGES AND UNIVERSITIES. 2018 Black Alone 67.4%

64.0%

64.5%

31.8%

31.0%

2018 American Indian/Alaska Native Alone

0.3%

0.2%

0.2%

2018 Asian Alone

0.5%

1.6%

1.6%

0.0%

0.0%

0.1%

0.5%

0.8%

2018 Pacific Islander Alone 2018 Other Race

0.7%

2018 Two or More Races

1.9%

1.7%

1.7%

2018 Hispanic Origin (Any Race)

1.6%

2.1%

2.6%

Persons of Hispanic origin represent 1.6% of the population in the identified area compared to 18.1% of the U.S. population. Persons of Hispanic Origin may be of any race. The Diversity Index, which measures the probability that two people from the same area will be from different race/ethnic groups, is 47.8 in the identified area, compared to 64.0 for the U.S. as a whole. Households 2000 Households 2010 Households 2018 Total Households 2023 Total Households

5,063

18,684

49,301

4,989

18,786

51,923

5,669

21,683

59,186

6,813

24,540

64,714

2000-2010 Annual Rate

-0.15%

0.05%

0.52%

2010-2017 Annual Rate

1.56%

1.75%

1.60%

2017-2022 Annual Rate

3.74%

2.51%

1.80%

2.22

2.13

2.24

2018 Average Household Size

The household count in this area has changed from 4,989 in 2010 to 5,669 in the current year, a change of 1.56% annually. The five-year projection of households is 6,813, a change of 3.74% annually from the current year total. Average household size is currently 2.22, compared to 2.24 in the year 2010. The number of families in the current year is 2,545 in the specified area.

Monitoring Construction in Charleston’s Industrial Market P R E S E N T E D BY: Thomas Buist, SIOR, Broker 843.442.3888 TBuist@Lee-Associates.com

Source: Esri, Esri and Infogroup, U.S. Census July 13, 2018

2

Page 1 of 2

4

« Area Credited

22

Dave Howard, President 843.203.1055 DHoward@Lee-Associates.com

960 Morrison Drive, Suite 400 | Charleston, SC 29403 | 843.747.1200 | lee-charleston.com

3

960 Morrison Drive, Suite 400

| Charleston, SC 29403 | 843.747.1200 | lee-charleston.com

960 Morrison Drive, Suite 400

|

Charleston, SC 29403

|

843.747.1200

|

Accolades

lee-charleston.com

« Research Reports

5

« Market

Information

Demographics

BERKELEY SUMMERVILLE NORTH CHARLESTON

WEST ASHLEY

SOUTH ISLANDS

« GIS Mapping 32

25

EAST COOPER

PENNINSULA

« Custom Demographics

« Demographic Reports


OU R

RES OU RC E S

ARGUS INVESTMENT ANALYSIS

A sophisticated financial software tool available for cash flow analysis, collateral and property valuation, due diligence, asset management & budgeting.

PROPRIETARY MARKET ANALYSIS AND REPORTS (IN-HOUSE)

Each quarter we analyze the numbers and write concise, easy to read reports for our clients and associates on the latest trends in Charleston County submarkets for the office, industrial, and retail sectors.

PROPRIETARY LEASE COMPARABLE DATABASE (IN-HOUSE)

Collects deals done within Lee & Associates Charleston in order to create a comprehensive database of recent leasing/sales activity.

NATIONAL C O S TAR MARKET REPORTS

Agents have full access to CoStar’s market analysis reporting. This service is available from their computers, smartphones, iPads, etc.

C O S TAR

NATIONAL

Our agents have full access to the National CoStar suite including property, tenant, and comps data. This service is accessible from their computers, smart phones, iPads, etc. This is for the entire nation.

L OOP N ET

Database of commercial real estate for lease and sale and marketing tool for broker listings.

SCCMLS

Our SCCMLS agents have full access to the suite including listings, sales/leases, and educational tools and resources.

STDB

Agents have access to an intuitive map-based data and visual analysis tool which provides property information, search tools, and maps that integrate labels, drawings, plan overlays, and imported data.

REAL CAPITAL ANALYTICS

Timely and reliable transaction data with unique intelligence on market pricing, capital flows and investment trends.

ESRI

GIS mapping system, covering all of the US, in-depth demographics and retail outlets.

CHARLESTON REGIONAL BUSINESS JOURNAL

Lee & Associates has an active subscription and a PDF of the bi-weekly paper available for brokers to view.

33


M A RKET ING

POR TFOLI O

THE CORNER OFFICE Charleston’s Proposed and Under Construction Office Activity

CONNECTING

1251 CAROLINA PARK BLVD.

FOR SALE

OFFICE & INDUSTRIAL EXPERTISE

WITH

PROPERTIES

LEE & ASSOCIATES

M T. P L E ASAN T, S C 29466

R E P R E S E N T I N G T E NAN T S O N LY N O CO N F L I CT O F I N T E R E S T

PEOPLE

Charleston, SC

The Nat ion’s L arget Pr ivately O wne d C ommercia l Re a l Est ate Organizat ion

CONTACT:

CONTACT: DAVID HOWARD (843) 801-8549 DHoward@Lee-Associates.com

JON CHALFIE

CORI NUTTALL (843) 475-8285 CNuttall@Lee-Associates.com

Broker

H A I L E Y C L I F TO N

Associate

22

(843) 345-6000 (843) 300-5209 JChalfie@Lee-Associates.com HClifton@Lee-Associates.com

960 Morrison Drive, Suite 400 | Charleston, SC 29403 | 843.747.1200 | lee-charleston.com

960 Morrison Drive, Suite 400

| Charleston, SC 29403 | 843.747.1200 | lee-charleston.com

960 Morrison Drive, Suite 400 | Charleston, SC 29403 | 843.747.1200 | lee-charleston.com

960 Morrison Drive, Suite 400

| Charleston, SC 29403 | 843.747.1200 | lee-charleston.com

JUST LISTED FOR LEASE I C O N I C B U I L D I N G D I R E C T LY ACROSS FROM THE APPLE STORE!

FOR SALE

FOR LEASE

MARCH 2019

304 KING STREET DOWNTOWN CHARLESTON, SC 29401 VIEW SALE LISTING >> PROPERTY TYPE:

Retail or Office

LEASE PRICE:

$25,000/month or $44.00/SF, NNN

SALE PRICE:

$4,900,000

COUNTY:

Charleston

TAX ID/APN:

457-04-04-018

BUILDING/UNIT SIZE:

± 6,866 SF

YEAR BUILT:

1900

LEASING PROPOSAL &

FOR LEASE

M A R K E T

E V A L U A T I O N

7 1 0 J O H N N I E D O D D S B LV D . M T. P L E A S A N T, S C 2 9 4 6 4

PREPARED FOR:

The City of Isle of Palms, SC

Proposed Future Office Space for South Carolina Department of Motor Vehichles (DMV)

VIEW LEASE LISTING >>

FOR MORE INFORMATION >>

Reid Davis, CCIM, SIOR (843) 277-4326

BOB Nuttall, SIOR, CPM (843) 367-8255

RDavis@Lee-Associates.com

BNuttall@Lee-Associates.com

*We obtained the information above from sources we believe to be reliable. However, we have not verified its accuracy and make no guarantee, warranty or representation about it. It is submitted subject to the possibility of errors, omissions, change of price, rental or other conditions, prior sale, lease or financing, or withdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent current or future performance of the property. You and your tax and legal advisors should conduct your own investigation of the property and transaction.

960 Morrison Drive, Suite 400

| Charleston, SC 29403 | 843.747.1200 | lee-charleston.com

JON CHALFIE

Broker (843) 345-6000 JChalfie@Lee-Associates.com

22 960 Morrison Drive, Suite 400

|

Charleston, SC 29403

|

843.747.1200

|

lee-charleston.com

960 Morrison Drive, Suite 400

HAILEY CLIFTON

JON CHALFIE

Associate (843) 300-5209 HClifton@Lee-Associates.com

Broker (843) 345-6000 JChalfie@Lee-Associates.com 960 Morrison Drive, Suite 400

| Charleston, SC 29403 | 843.747.1200 | lee-charleston.com

PROPOSAL FOR REAL ESTATE SERVICES

111 COLEMAN BLVD Presented to:

AVTEX Commercial and Red Drum Capital

EXCLUSIVELY PREPARED FOR:

Mr. Tex Small and Mr. Tyler Flesh

The Executive Board Building Committee International Longshoremen’s Association Local 1422

CONTACT: BOB NUTTALL, SIOR, CPM

CONTACT: JOHN ORR, CCIM (843) 793-6974 JOrr@Lee-Associates.com

34

Broker-In-Charge | Managing Principal

REID DAVIS, CCIM, SIOR (843) 270-2995 RDavis@Lee-Associates.com

TONI GILLIARD (843) 855-4557 ToniLGilliard@Gmail.com

(843) 367-8255 BNuttall@Lee-Associates.com

CARLA FIX, CPM Director of Property Management

(843) 793-6973 CFix@Lee-Associates.com

960 Morrison Drive, Suite 400 | Charleston, SC 29403 | 843.747.1200 | lee-charleston.com

CONTACT: RYAN WELCH,

DAVID HOWARD

MILTON THOMAS, III,

President

Managing Principal

Principal

(843) 801-8549 DHoward@Lee-Associates.com

(843) 367-8249 MThomas@Lee-Associates.com

(843) 747-5856 RWelch@Lee-Associates.com

CCIM, SIOR

SIOR

HAILEY CLIFTON

Associate (843) 300-5209 HClifton@Lee-Associates.com | Charleston, SC 29403 | 843.747.1200 | lee-charleston.com


M A RKET ING

POR TFOLI O

304 King Street

FOR LEASE

PRICE REDUCED $2,875,000

DOWNTOWN CHARLESTON, SC 29401

em an nA ve nu e

Debonair Street

FOR SALE

FOR LEASE

Arb utu

8084 Rivers Avenue

ue

Ha ck

n ve sA

FOR LEASE

N O RT H C H A R L E S T O N , S C 2 9 4 0 6

7 4 1 J O H N N I E D O D D S B LV D .

VIEW LISTING >>

The

Meeting

Truluck Center

M T. P L E A S A N T, S C 2 9 4 6 4

FOR SALE OR LEASE

Street

New Suite Sizes: 3,707 - 4,062 SF SPACE AVAILABLE:

FOR SALE

1014 ST. ANDREWS BOULEVARD CHARLESTON, SC 29407

1. Entire Building 19,032 SF - $12.00/SF, NNN

2440 MEETING STREET RD

APPROXIMATELY ± 6,866 SF

N.CHARLESTON, SC 29405

Iconic Building Well Suited For Restaurant | Bar Concept | Retail | Office

Located on the Upper Charleston Peninsula!

Located in the Heart of Mt. Pleasant!

2. Multi-Tenant $13.50/SF, NNN Suite 100 - 3,884 SF Suite 101 - 3,723 SF Suite 200 - 4,062 SF Suite 201 - 3,707 SF

PROPERTY DETAILS: • A+ Visibility on Rivers Avenue

• 19,032 SF Office Building

• Perfect for a Law Firm, Academic or Institutional User

• 6.5/1,000 Parking Ratio

• Built in 2012 • Can be subdivided

• Potential to Build Additional 10,000 SF Building

• Excellent Condition

• 270 Degrees of Signage

• 1.75 Acres

FOR MORE INFORMATION >>

C O N TA C T:

C O N TA C T: Reid Davis, CCIM, SIOR (843) 277-4326

Bob Nuttall, SIOR, CPM (843) 367-8255

RDavis@Lee-Associates.com

BNuttall@Lee-Associates.com

960 Morrison Drive, Suite 400

JON CHALFIE

Reid Davis, CCIM, SIOR (843) 277-4326 RDavis@Lee-Associates.com

HAILEY CLIFTON

Broker (843) 345-6000 JChalfie@Lee-Associates.com

Associate (843) 300-5209 HClifton@Lee-Associates.com

960 Morrison Drive, Suite 400

| Charleston, SC 29403 | 843.747.1200 | lee-charleston.com

Pete Harper, CCIM (843) 329-0108 PHarper@Lee-Associates.com

Cameron Yost (843) 203-1105 CYost@Lee-Associates.com

MILES BARKLEY

REID DAVIS, CCIM, SIOR

Broker, Principal (843) 514-6984 MBarkley@Lee-Associates.com

960 Morrison Drive, Suite 400 | Charleston, SC 29403 | 843.747.1200 | lee-charleston.com

| Charleston, SC 29403 | 843.747.1200 | lee-charleston.com

Managing Principal (843) 277-4326 RDavis@Lee-Associates.com

960 Morrison Drive, Suite 400

PETE HARPER, CCIM

Principal (843) 329-0108 PHarper@Lee-Associates.com

BOB Nuttall, SIOR, CPM (843) 367-8255

CORI NUTTALL (843) 475-8285

BNuttall@Lee-Associates.com

CNuttall@Lee-Associates.com

*We obtained the information above from sources we believe to be reliable. However, we have not verified its accuracy and make no guarantee, warranty or representation about it. It is submitted subject to the possibility of errors, omissions, change of price, rental or other conditions, prior sale, lease or financing, or withdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent current or future performance of the property. You and your tax and legal advisors should conduct your own investigation of the property and transaction.

| Charleston, SC 29403 | 843.747.1200 | lee-charleston.com

960 Morrison Drive, Suite 400

| Charleston, SC 29403 | 843.747.1200 | lee-charleston.com

B o b Nu t t a l l , S I O R , C P M & R e i d D av i s , C C I M , S I O R

REPRESENTED THE BUYERS IN A $9.66 MILLION 1031 EXCHANGE! SOLD!

SUMTERS LANDING

A D VA N C E D A U T O PA RT S

1027 Folly Road Charleston, SC 29412

205 Grande Heights Drive Cary, NC 27513

• •

7,397 SF Shopping Center Sold for $2,410,000

• •

7,000 SF Store Sold for $2,220,000

FABER CENTRE C A L L

S TAT E W I D E

T E N A N T

F O R

NORTH CHARLESTON

O F F E R S

SOUTH CAROLINA

R E P R E S E N TAT I O N

A N D C O R P O R AT E S E R V I C E S P R O P O S A L PREPARED FOR:

80 41 ISLE

OF

ST

PALMS,

AVENUE

SOUTH

960

Suite

Morrison

Drive,

400

|

Charleston,

SC

2940

Reid Davis, CCIM, SIOR

Managing Principal

(843) 270-2995 RDavis@Lee-Associates.com

Bob Nuttall, SIOR, CPM (843) 367-8255 BNuttall@Lee-Associates.com |

843.747.1200

C O N N E C T I N G

|

lee-charleston.com

960 Morrison Drive, Suite 400

• •

4,550 SF Store Sold for $1,289,000

IF YOU ARE INTERESTED IN BUYING OR SELLING PLEASE CONTACT US!

Waterfront Restaurant Opportunity Cameron Yost (843) 203-1105 CYost@Lee-Associates.com

5,234 SF Store Sold for $3,750,000

CAROLINA

Photo Credit: MUSC

Pete Harper, CCIM (843) 329-0108 PHarper@Lee-Associates.com

SHERWIN WILLIAMS 5315 Sunset Boulevard Lexington, SC 29072

• •

Eva Greenwood, Alice Edwards and Rachel Jones

Reid Davis, CCIM, SIOR (843) 277-4326 RDavis@Lee-Associates.com

VERIZON WIRELESS 3513 Clemson Boulevard Anderson, SC 29621

| C h a r l e s t o n , S C 2 9 4 0 3 | 8 4 3 . 7 4 7 . 1 2 0 0 | l e e - c h a r l e s t o n . c o m1

960 Morrison Drive, Suite 400

P E O P L E

|

Bob Nuttall, SIOR, CPM

Broker-In Charge, Managing Principal

(843) 747-2333 BNuttall@Lee-Associates.com

W I T H

Charleston, SC 29403

|

P R O P E R T I E S

843.747.1200

|

lee-charleston.com

CHARLESTON OFFICE ADVISORS

Leased 10,537 SF 3 9 5 5 FA B E R P L A C E D R I V E

L E E & A S S O C I AT E S A D D S TWO NEW TENANTS 3955 Faber Place Drive N. Charleston, SC 29405 • •

LEASING AND PROPERTY MANAGEMENT PROPOSAL

396 Meeting Street CHARLESTON, SOUTH CAROLINA

• • •

7410 Northside Drive

HawkLaw leased Suite 104 - 3,706 SF represented by Joseph Tecklenberg at CC&T Real Estate The State of South Carolina leased Suite 301 - 6,831 SF

AVAILABLE SPACES Suite 100 - 7,139 SF at $27.00/SF, Full Service Suite 101 - 2,522 SF at $28.00/SF, Full Service Suite 201 - 3,567 SF at $28.00/SF, Full Service

FOR SALE

LEARN MORE

PREPARED FOR RUSSELL CANARD AND REED BROWNELL, RCB DEVELOPMENT

DOWNLOAD F LY E R

C O N TA C T T H E OFFICE TEAM

117 W. Luke Avenue SUMMERVILLE, SC 29483

CHARLESTON OFFICE ADVISORS

960 Morrison Drive, Suite 400 Charleston, SC 29403

THE CHARLESTON OFFICE ADVISORS

Management

Leasing

Bob Nuttall, SIOR, CPM (843) 367-8255 BNuttall@Lee-Associates.com

Reid Davis, CCIM, SIOR (843) 277-4326 RDavis@Lee-Associates.com

Carla Fix, CPM (843) 793-6973 CFix@Lee-Associates.com

Pete Harper, CCIM (843) 329-0108 PHarper@Lee-Associates.com

(843) 747-1200

Lee-Charleston.com

Cameron Yost (843) 203-1105 CYost@Lee-Associates.com

Ashley Overlook 4390 BELLE OAKS DRIVE NORTH CHARLESTON, SC 29405

CHARLESTON OFFICE ADVISORS

FOR LEASE!

Cameron Yost (843) 814-7236 CYost@Lee-Associates.com

Reid Davis, CCIM, SIOR Managing Principal (843) 270-2995 RDavis@Lee-Associates.com

Pete Harper, CCIM Principal (843) 329-0108 PHarper@Lee-Associates.com

Reid Davis, CCIM, SIOR (843) 277-4326 RDavis@Lee-Associates.com

Cameron Yost Associate (843) 203-1105 CYost@Lee-Associates.com

960 Morrison Drive, Suite 400 Charleston, SC 29403

(843) 747-1200

Lee-Charleston.com

Pete Harper, CCIM (843) 329-0108 PHarper@Lee-Associates.com

2,500 TO 26,942 SF | $26.50 /SF/YR (FULL SERVICE) CONTACT: Reid Davis, CCIM, SIOR (843) 277-4326 RDavis@Lee-Associates.com 960 Morrison Drive, Suite 400

9 6 0 M o r r i s o n D r, S t e 4 0 0 C h a r l e s t o n , S C 2 9 4 0 3

(843) 747-1200

Pete Harper, CCIM (843) 329-0108 PHarper@Lee-Associates.com

Cameron Yost (843) 203-1105 CYost@Lee-Associates.com

| Charleston, SC 29403 | 843.747.1200 | lee-charleston.com

Lee-Charleston.com

35


36


T HE

EX ECU T ION

B O B N U T TA L L ,

SIOR, CPM

TE AM

| Managing Principal

Bob specializes in two areas of our company’s service lines: brokering and managing commercial properties for our clients. In the brokerage division, he primarily specializes in representing owners of office and medical office properties, from both a leasing and sales standpoint. He also works with select buyers and tenants on their behalf to locate property for them. In the property management division he works daily with our property management staff, which has grown into one of the largest third-party management companies in the greater Charleston area. (843) 367-8255 BNuttall@Lee-Associates.com

C O R I N U T TA L L | Associate Cori Nuttall is a licensed Associate with the Lee & Associates Charleston office. She specializes in office leasing and tenant representation services for end-users of commercial real estate. Cori has represented office, medical, flex industrial and retail tenants in a variety of industries. She also represents landlords throughout the Charleston area in leasing multitenant office buildings and retail centers. In addition to brokerage, Cori also provides corporate lease administration services for a portfolio of over sixty Papa John’s stores for franchises located in the Minneapolis, MN and Miami, FL markets. (843) 475-8285 CNuttall@Lee-Associates.com

B A C K S TA G E T E A M J O D Y D AV I S | Sr. Marketing Coordinator Sr. Marketing Coordinator, Jody designs and executes marketing content with tactics to support the Lee brokerage and it’s clients. Her expertise is manifested in all aspects of marketing materials such as custom brochures, custom email blasts, proposals, offering memorandums, demographic research reports, and more. Brought up in the graphic design and advertising world, Jody came to Lee with over 16 years of design & marketing experience. (843) 203-1058 JDavis@Lee-Associates.com

37


ENG A G EM ENT

TE R MS

Rental Rate Recommendation $XX.00-$XX.00 | Full Service | Office Rate $XX.00-$XX.00 I Offering for Credit Tenants Minimum X year lease term

Brokerage Services: New Leases To attract new tenants to the Navy Yard, Lee & Associates proposes the following terms: X% of the gross value of the initial lease term if no cooperating broker or tenant representative is involved in the transaction. X% of the gross value of the initial lease term if a cooperating broker or tenant representative is involved in the transaction. In the event a cooperating broker requests a X% fee, the gross fee will increase to X%. All commissions to be paid half upon lease execution and half upon occupancy.

Brokerage Services: Renewals X% of the gross value of the renewal term to be paid at lease execution.

Monthly Onboarding Fee Due to the initial time and labor investment for project research, marketing, presentation and prospecting activities, and given the request for Cori to be exclusive and to take no competitive listing assignments, Lee requests a monthly onboarding fee for the first xxx to xxx (X-X) months of the agreement. This fee will offset Cori’s lost income on potential new assignments while she simultaneously phases out any competitive listings such that she will be primarily focused on the subject assignment. Based on the scope of work and size of the portfolio, which is approximately 156,000 square feet, we believe a fee of $X,XXX/month is appropriate, which if paid for the full twelve months amounts to approximately $.58/SF, a fraction of what the eventual lease commissions will total. In the event other properties under Weaver and WECCO’s control are assigned to Lee & Associates during this time frame, the proposed monthly fee may be reevaluated. The intent of this fee is to ensure due attention is given to the Navy Yard assignments by bridging the gap between current assignments to be phased out, and future commissions earned at the Navy Yard, while taking no new listing assignments. Our goal is to establish an exclusive partnership between all parties in which Lee & Associates represents Weaver Capital and WECCO Development in leasing their full portfolio. 38


We obtained the information contained herein from sources we deem to be reliable; however, we have not verified the accuracy or suitability of said information and we hereby make no guarantee, warranty or representation with regard to said information. This information is submitted subject to the possibility of errors or omissions; change in price, rental, or other conditions; prior sale or lease; and/or withdrawal from the market without notice. Any projections, opinions, assumptions, and estimates included herein are for example only; these examples may not represent current or future performance of the subject property. We hereby advise any party interested in the subject property to seek tax and/or legal advice in order to conduct one’s own investigation of the subject property and any contemplated transaction thereon.

39


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M o r r i s o n

D r i v e ,

S u i t e

4 0 0

|

C h a r l e s t o n ,

S C

2 9 4 0 3

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