Pitch Deck

REAL ESTATE ADVISORY SERVICES May 2016

Savills Studley Phoenix | 2231 E Camelback Road Suite 209 | Phoenix, Arizona 85016 | (602) 783-1601 | www.savills-studley.com

TEAM & AGENDA Tiffany Winne Senior Vice President 602.783.1611 twinne@savills-studley.com

Janelle Hepner Workplace Strategist 602.783.1614 jhepner@savills-studley.com

Alex Greene Financial Analyst 312.595.2919 agreene@savills-studley.com

Luke Raimondo Corporate Managing Director 213.553.3845 lraimondo@savills-studley.com

1. Team Introduction 2. Firm Overview 3. History of Savills Studley/LRRC Relationship 4. 2XU 1R &RQĂ LFW 3ODWIRUP 5. Approach to Portfolio Management 6. Approach to Workplace Strategy 7. Market Snapshot: Las Vegas 8. Q&A

Tom Johnston Senior Managing Director 602-783-1602 tjohnston@savills-studley.com

Savills Studley Phoenix | 2231 E Camelback Road Suite 209 | Phoenix, Arizona 85016 | (602) 783-1601 | www.savills-studley.com

FIRM OVERVIEW

Savills Studley Phoenix | 2231 E Camelback Road Suite 209 | Phoenix, Arizona 85016 | (602) 783-1601 | www.savills-studley.com

SAVILLS STUDLEY

BY THE NUMBERS

64 Years in Existence

29 'RPHVWLF 2IÀFHV

76 AmLaw 100 Firms Represented

657,186

0

100%

Square Feet Represented in Phoenix Market since March 2015

Landlords Represented

Of Our Fees at Risk Dependent on LRRC’s Satisfaction

Savills Studley Phoenix | 2231 E Camelback Road Suite 209 | Phoenix, Arizona 85016 | (602) 783-1601 | www.savills-studley.com

LAW FIRM EXPERIENCE Strategic Partner to Leading American Lawyer Firms The 2015 American Lawyer Top 100 Law Firms Represented

by Savills Studley Latham & Watkins Baker & McKenzie DLA Piper Skadden, Arps, Slate, Meagher & Flom 5 Kirkland & Ellis 6 Jones Day 7 Norton Rose Fulbright

1 2 3 4

8 Hogan Lovells 9 Sidley Austin 10 White & Case 11 Gibson, Dunn & Crutcher 12 Morgan, Lewis & Bockius 13 Sullivan & Cromwell 14 Dentons 15 Greenberg Traurig 16 Cleary Gottlieb Steen & Hamilton 17 Simpson Thacher & Bartlett 18 Mayer Brown 19 Reed Smith 20 Weil, Gotshal & Manges 21 K&L Gates 22 Ropes & Gray 23 Quinn Emanuel Urquhart & Sullivan 24 Davis Polk & Wardwell 25 WilmerHale 26 Paul, Weiss, Rifkind, Wharton & Garrison 27 Paul Hastings 28 Morrison & Foerster 29 30 31 32 33

King & Spalding McDermott Will & Emery Orrick, Herrington & Sutcliffe

34 Shearman & Sterling 35 Dechert 36 Proskauer Rose 37 Cooley 38 Goodwin Procter 39 Winston & Strawn 40 Milbank, Tweed, Hadley & McCloy 41 Debevoise & Plimpton 42 Perkins Coie 43 Covington & Burling 44 Wachtell, Lipton, Rosen & Katz 45 Arnold & Porter 46 Holland & Knight 47 Bingham McCutchen 47 Foley & Lardner 47 O’Melveny & Myers 50 Vinson & Elkins 51 Baker Botts 52 Cravath, Swaine & Moore 53 Wilson Sonsini Goodrich & Rosati 54 Alston & Bird 55 Willkie Farr & Gallagher 56 Bryan Cave 57 McGuireWoods 58 Baker & Hostetler 59 Hunton & Williams 60 Pillsbury Winthrop Shaw Pittman 61 Seyfarth Shaw 62 Littler Mendelson 63 Katten Muchin Rosenman 64 Sheppard Mullin Richter & Hampton 65 Cadwalader, Wickersham & Taft

66 Fried, Frank, Harris, Shriver Squire Patton Boggs & Jacobson Akin Gump Strauss Hauer & Feld 67 Faegre Baker & Daniels

Savills Studley is the premier provider of real estate advisory and consulting services WR WKH QDWLRQ¡V WRS ODZ ÀUPV SURXGO\ UHSUHVHQWLQJ PRUH WKDQ RI WKH $PHULFDQ /DZ\HU 7RS ÀUPV

68 Venable 69 Fragomen, Del Rey, Bernsen & Loewy 70 Duane Morris 71 Locke Lord 72 Troutman Sanders 73 Kilpatrick Townsend & Stockton 74 Jenner & Block 75 Nixon Peabody 76 Schulte Roth & Zabel 77 Williams & Connolly 78 Hughes Hubbard & Reed 79 Jackson Lewis 80 Pepper Hamilton 81 Drinker Biddle & Reath 82 Cahill Gordon & Reindel 83 Kaye Scholer 84 Ogletree, Deakins, Nash, Smoak & Stewart 85 Crowell & Moring 86 Polsinelli 87 Lewis Brisbois Bisgaard & Smith 88 Fish & Richardson 89 Steptoe & Johnson 90 Barnes & Thornburg 91 Boies, Schiller & Flexner 92 Haynes and Boone 93 Dorsey & Whitney 94 Bracewell & Giuliani 95 Fox Rothschild 96 Blank Rome 97 Fenwick & West

3 Appointments | 5 Years

13 Appointments | 14 Years

11 Appointments | 20 Years

65 Appointments | 35 Years

23 Appointments | 25 Years

13 Appointments | 28 Years

38 Appointments | 23 Years

14 Appointments | 5 Years

11 Appointments | 10 Years

16 Appointments | 26 Years

9 Appointments | 15 Years

12 Appointments | 9 Years

98 Akerman 99 Kramer Levin Naftalis & Frankel 100 Baker, Donelson, Bearman, Caldwell & Berkowitz

Denotes current/past Savills Studley client

1

8 Appointments | 25 Years

12 Appointments | 30 Years

8 Appointments | 12 Years

Savills Studley Phoenix | 2231 E Camelback Road Suite 209 | Phoenix, Arizona 85016 | (602) 783-1601 | www.savills-studley.com

6 Appointments | 10 Years

WHY SAVILLS STUDLEY?

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Savills Studley Phoenix | 2231 E Camelback Road Suite 209 | Phoenix, Arizona 85016 | (602) 783-1601 | www.savills-studley.com

HISTORY OF SAVILLS STUDLEY PHOENIX & LRRC RELATIONSHIP

Savills Studley Phoenix | 2231 E Camelback Road Suite 209 | Phoenix, Arizona 85016 | (602) 783-1601 | www.savills-studley.com

PHOENIX RELATIONSHIP

Strategic planning including opportunity assessment RI ODZ ÀUPV

2/3/2015

2/9/2016

5/2/2016

Savills Studley Phoenix Opens

Kick-Off Meeting with Reno Partners

Benchmarking Survey in parnership with the ALA

01

02 8/31/2015 Initial Meeting with Reno Partners

03

Strategic assessment RI 3RVW 2IÀFH conversion opportunity

04 3/22/2016 Reno Market Tour

Savills Studley Phoenix | 2231 E Camelback Road Suite 209 | Phoenix, Arizona 85016 | (602) 783-1601 | www.savills-studley.com

05

PHOENIX REPRESENTATION

±135,000 SF

Multiple Assignments

±80,000 SF

±90,000 SF

±73,000 SF

±90,000 SF

±40,000 SF

±16,000 SF

±13,000 SF

In Progress

In Progress

Savills Studley Phoenix | 2231 E Camelback Road Suite 209 | Phoenix, Arizona 85016 | (602) 783-1601 | www.savills-studley.com

OUR NO-CONFLICT PLATFORM

Savills Studley Phoenix | 2231 E Camelback Road Suite 209 | Phoenix, Arizona 85016 | (602) 783-1601 | www.savills-studley.com

PHOENIX REPRESENTATION 7HQDQW 5HSUHVHQWDWLRQ 7UDQVDFWLRQV DV RI 7RWDO 2IÀFH /HDVLQJ 7UDQVDFWLRQV

Purity of Purpose: What it Means for LRRC

No hidden agendas

•

SAVILLS STUDLEY

Any building LRRC selects will be the result of a strategic and exhaustive process - free from the LQÁXHQFH RI DQ\ ODQGORUG relationships

CRESA PARTNERS

NEWMARK GRUBB KNIGHT FRANK

•

JLL

Methodical and relentless leverage creation during negotation - we are not worried about losing any landlord revenue

COLLIERS

•

CUSHMAN & WAKEFIELD

We are not a sales team, we are your team

CBRE

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Savills Studley Phoenix | 2231 E Camelback Road Suite 209 | Phoenix, Arizona 85016 | (602) 783-1601 | www.savills-studley.com

TENANT’S BEST FRIEND

A tenant’s best friend is a best friend with a little bite.

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A tenant’s best friend is a friend with a little bite.

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Savills Studley Phoenix | 2231 E Camelback Road Suite 209 | Phoenix, Arizona 85016 | (602) 783-1601 | www.savills-studley.com

NO-CONFLICT PLATFORM Phoenix, Arizona

Tucson, Arizona

'LUHFW &RQÁLFWV Square Feet

# of Buildings

,QGLUHFW &RQÁLFWV Square Feet

# of Buildings

CBRE

22,376,512

245

45,267,439

654

&XVKPDQ :DNHÀHOG

19,406,255

300

45,106,511

JLL

9,173,211

104

Lee & Associates

7,203,660

Colliers International

Leasing Company

'LUHFW &RQÁLFWV Square Feet

# of Buildings

,QGLUHFW &RQÁLFWV Square Feet

# of Buildings

CBRE

3,027,259

168

2,966,003

91

586

Cushman & :DNHÀHOG_3,&25

2,611,441

173

1,676,398

70

36,538,736

402

Oxford Realty Advisors

644,369

73

666,321

15

161

29,671,215

405

The Colton Company

501,419

7

94,432

2

6,634,833

229

45,650,404

647

Tucson Realty & Trust

478,722

15

10,873

2

0

0

0

0

0

0

0

0

'LUHFW &RQÁLFWV Square Feet

# of Buildings

,QGLUHFW &RQÁLFWV Square Feet

# of Buildings

Newmark Cornish & Carey

16,404,468

306

38,286,042

511

Savills Studley

Irvine, California

Leasing Company

Savills Studley

Silicon Valley, California

'LUHFW &RQÁLFWV Square Feet

# of Buildings

,QGLUHFW &RQÁLFWV Square Feet

# of Buildings

The Irvine Company

7,726,838

92

169,858

4

CBRE

4,583,491

36

14,000,808

161

&XVKPDQ :DNHÀHOG

11,836,864

230

48,972,449

616

&XVKPDQ :DNHÀHOG

3,573,708

25

14,655,308

159

Colliers International

11,409,276

284

45,540,265

602

JLL

1,683,537

19

16,420,354

160

CBRE

10,565,802

145

45,504,125

577

ORION Property Partners, Inc.

1,124,533

5

704,190

14

3,753,323

8

78,676

2

Savills Studley

0

0

0

0

0

0

0

0

Leasing Company

Leasing Company

Apple Inc.

Savills Studley

Savills Studley Phoenix | 2231 E Camelback Road Suite 209 | Phoenix, Arizona 85016 | (602) 783-1601 | www.savills-studley.com

NO-CONFLICT PLATFORM Las Vegas, Nevada

Reno, Nevada

'LUHFW &RQÁLFWV Square Feet

# of Buildings

,QGLUHFW &RQÁLFWV Square Feet

# of Buildings

CBRE

6,389,526

139

7,331,680

210

Colliers International

4,147,674

111

9,221,271

Commerce Real Estate Solutions

3,170,569

119

Newmark Grubb Knight Frank

2,401,038

Thomas & Mack Development Group

Leasing Company

'LUHFW &RQÁLFWV Square Feet

# of Buildings

,QGLUHFW &RQÁLFWV Square Feet

# of Buildings

CBRE

1,460,867

43

1,420,207

42

235

Colliers International

1,261,807

45

904,953

29

1,618,115

46

Dickson Commercial Group

1,044,142

38

50,000

2

56

6,718,231

151

Commerce Real Estate Solutions

503,241

39

146,096

18

1,488,697

32

308,196

6

NAI Alliance Carson City

435,305

35

301,587

13

0

0

0

0

Savills Studley

0

0

0

0

Savills Studley

Denver, Colorado

Leasing Company

Colorado Springs, Colorado

Leasing Company

'LUHFW &RQÁLFWV Square Feet

# of Buildings

,QGLUHFW &RQÁLFWV Square Feet

# of Buildings

Leasing Company

'LUHFW &RQÁLFWV Square Feet

# of Buildings

,QGLUHFW &RQÁLFWV Square Feet

# of Buildings

&XVKPDQ :DNHÀHOG

22,184,720

233

52,287,791

510

&XVKPDQ :DNHÀHOG

3,611,107

58

1,279,835

22

CBRE

21,740,025

227

51,318,835

469

Newmark Grubb Knight Frank

1,855,121

30

2,623,809

37

JLL

15,856,489

80

50,588,756

406

CBRE

1,614,006

27

5,062,511

66

Newmark Grubb Knight Frank

10,341,618

126

33,716,017

315

Quantum Commercial Group

1,463,770

34

223,355

8

3,392,437

43

55,052,411

437

Olive Real Estate Group

631,756

23

160,281

7

0

0

0

0

0

0

0

0

Colliers International

Savills Studley

Savills Studley

Savills Studley Phoenix | 2231 E Camelback Road Suite 209 | Phoenix, Arizona 85016 | (602) 783-1601 | www.savills-studley.com

NO-CONFLICT PLATFORM

Glendale, California

Albuquerque, New Mexico 'LUHFW &RQÁLFWV Square Feet

# of Buildings

,QGLUHFW &RQÁLFWV Square Feet

# of Buildings

CBRE

6,389,526

139

7,331,680

210

Colliers International

4,147,674

111

9,221,271

235

Commerce Real Estate Solutions

3,170,569

119

1,618,115

46

Newmark Grubb Knight Frank

2,401,038

56

6,718,231

151

Thomas & Mack Development Group

1,488,697

32

308,196

0

0

0

Leasing Company

Savills Studley

'LUHFW &RQÁLFWV Square Feet

# of Buildings

,QGLUHFW &RQÁLFWV Square Feet

# of Buildings

JLL

2,843,408

11

2,584,628

21

CBRE

2,189,725

14

3,472,411

27

Stevenson Real Estate Services

591,599

43

0

0

Charles Dunn, Inc.

370,392

5

0

0

6

Amidi Group

203,700

5

0

0

0

Savills Studley

0

0

0

0

Leasing Company

Savills Studley Phoenix | 2231 E Camelback Road Suite 209 | Phoenix, Arizona 85016 | (602) 783-1601 | www.savills-studley.com

APPROACH TO PORTFOLIO OPTIMIZATION

Savills Studley Phoenix | 2231 E Camelback Road Suite 209 | Phoenix, Arizona 85016 | (602) 783-1601 | www.savills-studley.com

LRRC’S PORTFOLIO TIMING 2017

2018

2019

2021

2026

Reno ±11,728 SF

Irvine ±6,549 SF

Colorado Springs ±10,055 SF

Tucson ±19,066 SF

Phoenix ±73,878 SF

Albuquerque ±8,048 SF

Denver ±56,179 SF

Glendale ±42,112 SF

Silicon Valley ±9,259 SF

Las Vegas ±33,338 SF

Our Checklist for LRRC’s Portfolio: 1. 5HYLHZ HIÀFLHQF\ OHYHOV YDFDQFLHV

3. Analyze subleasing options

2. Explore early restructures/space reductions

4. Answer stay vs. go question

Savills Studley Phoenix | 2231 E Camelback Road Suite 209 | Phoenix, Arizona 85016 | (602) 783-1601 | www.savills-studley.com

APPROACH TO WORKPLACE STRATEGY

Savills Studley Phoenix | 2231 E Camelback Road Suite 209 | Phoenix, Arizona 85016 | (602) 783-1601 | www.savills-studley.com

SAVILLS STUDLEY

“Never take more space than you need. You can always get more space; but you can’t always get rid of what you don’t need.”

--Kenneth Van Winkle Savills Studley Phoenix | 2231 E Camelback Road Suite 209 | Phoenix, Arizona 85016 | (602) 783-1601 | www.savills-studley.com

TRENDS

Savills Studley Phoenix | 2231 E Camelback Road Suite 209 | Phoenix, Arizona 85016 | (602) 783-1601 | www.savills-studley.com

RENO GENSLER STUDY

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Savills Studley Phoenix | 2231 E Camelback Road Suite 209 | Phoenix, Arizona 85016 | (602) 783-1601 | www.savills-studley.com

MARKET SNAPSHOT LAS VEGAS

Savills Studley Phoenix | 2231 E Camelback Road Suite 209 | Phoenix, Arizona 85016 | (602) 783-1601 | www.savills-studley.com

LRRC LAS VEGAS KEY DYNAMICS

CURRENT TENANTS IN THE MARKET

• Subtenant Avison Young in serial short-term extension • 12/21 expiration nudges LRRC’s sublease toward “wasting assetâ€? status • Hughes Center aacquired by Blackstone in 2013 • 0XOWLSOH ODZ Ă€UPV KDYH GHSDUWHG *RUGRQ 5HHVH etc) • Littler - also in the market • Multiple levers for saving exist: • Current rate of $50.92/SF is above current asking rate of $39/SF • *LYH EDFN WKH “ 6) RQ WKH UG Ă RRU

Savills Studley Phoenix | 2231 E Camelback Road Suite 209 | Phoenix, Arizona 85016 | (602) 783-1601 | www.savills-studley.com

HUGHES CENTER Leaving Hughes Center

In the Market

3883

3993 3980

3800

3960

3773

3763

3753

Greenberg Traurig

3930 Littler Mendelson Lincoln Gustafson

Jolley Urga Fisher Phillips

3770

Fox Rothschild Gordon & Reese Armstrong Teasdale

Savills Studley Phoenix | 2231 E Camelback Road Suite 209 | Phoenix, Arizona 85016 | (602) 783-1601 | www.savills-studley.com

Q&A

Savills Studley Phoenix | 2231 E Camelback Road Suite 209 | Phoenix, Arizona 85016 | (602) 783-1601 | www.savills-studley.com