Retailer Continuum

Customized Real Estate Services

Accelerating success. We offer retailers the depth and scale required to open and manage a portfolio of brand-consistent, productive stores with a regional to international reach.

2 | Retail Continuum Contents

Continuum overview 3 Strategy 3 Site selection 3 Store design & delivery 3 Portfolio management 3 Proven success 3 Colliers international 3

Continuum overview

Retailer & Restaurant Portfolio Management.

At Colliers, we are guided by a spirit of enterprise and innovation with a human touch. We embrace even the toughest challenges, and are relentlessly creative in solving them.

We are involved in all facets of store delivery and portfolio management, offering help from more than 500 highly-skilled retail professionals in North America alone—plus many more in key international markets in Europe, Latin America and the Asia-Pacific region.

By being involved in all facets of store delivery and portfolio management we quickly learn what works best and incorporate those practices in the Continuum, thus continuously providing the ideal shopping experience to your customers in the most efficient manner.

Our goal is to make your real estate a competitive business advantage and ensure your entire range of property needs are met. And through it all, our professionals go the extra mile in their attitudes and actions, allowing our values of expertise, community, service and fun to come through in everything we do.

Retail Continuum | 3 Strategy

New market penetration & realignment.

Whether you are trying to realign your store launch an international roll-out, Colliers has the footprint, adjust your distribution strategy, develop expertise and resources to assist in developing a market optimization plan for a single MSA, or your real estate strategies.

• Concept review/brand identification • Evaluate support structure – HQ, distribution, call centers • Competition/cotenancy • Capital strategies – lease, own, financing • Demographic/site criteria development/validation • Submarket analysis • Space design and prototyping, building and FF&E cost estimates

Process

Strategic planning & vision • Forecast total sales volume for all U.S. regions, and identify markets of • Explore project success criteria and organization evolution greatest opportunity • Standardize key processes • Prioritize target markets for roll-outs • Identify customer profile, synergistic retailers, and competitors • Assist with optimizing efficiency in logistics, distribution, & management • Assist with setting goals and solutions Targeting • Provide design and construction value engineering • Locate and map clusters of target households • Implement timelines and accountabilities • Create customized site criteria heat mapping Location performance analysis • Project spending of each target household to forecast sales potential • Model trade areas by rings, manual polygon or drive times • Run “reverse demographics” to locate sites that best fit the profile • Determine key demographic correlations between high-and low- • Identify amenities & new developments located in or serving target markets performing stores Site options • Review distribution networks and management territories • Identify new trends in population shifts and retail patterns • Maximize efficiency of stores based on square footage and SKUs • Identify new developments and new entries in the market • Prepare a strategy for relocating or repositioning low-performing stores • Provide input for forecasting sales volumes • Review economic terms of leases to ensure alignment with real estate • Create aerial maps showing subject sites, comparable transactions, and and operating strategies competitors Customer profiling • Create alternative floor/space planning for various spaces • Link point-of-sale addresses to census & psychographic household data • Identify and define signage strategies and options • Create detailed, household-level understanding of trade areas Capital strategies • Forecast spending of each target household • Provide valuation services • Identify customer attitude toward select cotenants, brand positions, • Provide financing through traditional lending sources, and area amenities • including SBA • Understand connections to preferred tourist destinations and activities • Assist with packaging and presentation for venture capital Market opportunity analysis • Pursue sale/leaseback strategy where appropriate to monetize existing • Total the target customer population & spending to predict market capacity owned assets • Divide market to understand total number of distinct • Perform reverse build-to-suits • Institute preferred developer program submarkets 4 | Retail Continuum Strategy

Portfolio Site Management Selection

Store Design & Delivery

Resources

Colliers has a deep bench of professionals who have broad experience in all aspects of the retail real estate spectrum, including serving as heads of real estate at national retail organizations, real estate managers, developers, site selectors, analysts, and brokers. We rely on the experience of this team to leverage the resources of our organization and create the optimal strategy for our clients.

Our expertise in demographics, geographic information systems, retailing, market analysis, merchandising/tenant mix planning, project/construction management, project leasing, and sustainable consulting ensure the planning and execution of a winning retail strategy.

In-depth research

• Economic data collection and comprehensive market analysis • Expansive databases housing detailed information on properties nationwide and globally • Quarterly reports produced on market and economic conditions in virtually every major market • Combined market knowledge and forward-thinking expertise to help our clients make the right business decisions and plan for the future

Geographic information systems (gis)

• Thematic mapping • Comparative market analysis • Market trends • Market segmentation • Demographics • Employment and transportation analysis Retail Continuum | 5 Site Selection

Site/space selection.

Managing a multi-market roll-out is much more A well-managed roll-out requires a clean strategy, than simply “referring” a client to qualified brokers process, systems, standardization and clarity in other markets. of purpose.

• Complete submarket analysis • Lease/purchase agreements • Define technical site attributes • Business advisory and facilitation (traffic, visibility, parking, etc.) • Due diligence • Determine site/store options • Financing • Signage optimization/visibility • Transaction management/pipeline reporting • Letter of intent/negotiations • Real estate committee packages

Process

Standard Response & Negotiation Packages Site Selection • Standard Response & Negotiation Packages • Identify specific alternatives • Develop and prototype a set of standard documents for use by field • Complete site analysis forms and packages brokers • Draft & Negotiate Proposals • Develop and initiate transaction pipeline tracking system Draft and review LOIs and work letters with client • Communicate and train field brokers on use • Negotiate with landlord Submarket Analysis • Prepare documents with final negotiated deal points and site approval • Communicate market strategy–maximum store count vs. cannibalization packages issues Lease Execution • Review site economics versus competitors and alternate locations • Present final, corporate-approved deal points for lease preparation • Determine market lease rates and terms based on specific space • Review and negotiate lease terms and conditions with client’s attorney delivery condition • Coordinate execution of final lease documents • Estimate delivery timing for each site • Construction Coordination & Hand-Off • Identify and resolve any local obstacles to market entry or operations • Review current space condition with construction • Estimate costs and timeline • Stage materials for improvements and fixturing • Alert on timing of possessions

6 | Retail Continuum Strategy

Portfolio Site Management Selection

Store Design & Delivery

Retail Continuum | 7 Store design & delivery

Solutions leveraging diverse expertise & cutting edge technology

Colliers Project Leaders stands above our All of Colliers’ services are made available to clients competition because of our People, Process, through excellence in each of these elements. In Platform and Partnership. doing so, we have fundamentally changed the way projects are delivered.

People

Over 500 project management professionals Project Management Professionals (PMP) • Colliers has an independent project management professional pool • We mandate that all our project managers achieve PMP certifications. of resources. LEED Accredited Professionals (AP) Space development experts • We mandate that all our project managers achieve their • We are a multi-disciplinary team of professionals with the relevant LEED AP designation. academic training, workspace development experience, and technical Training and development expertise needed to provide our clients with certainty of success. Our • All Colliers staff participate in training and continuing education. New team includes experts with the in-depth knowledge required to advise employees attend an intensive three-day seminar specific to the Colliers our clients on design, construction, health and safety, life-cycle cost Professional Practice Playbook. analysis, sustainability, and other technical challenges associated with On time. On budget. retail build-out, renovation and retrofitting. • Our people have the proven ability to successfully and consistently lead Base building integration projects from inception to completion on time and on budget – with • Our people understand the constraints, challenges and opportunities emphasis on achieving client goals. that arise when assuming space in a brand new building.

Process

Coordination Leadership • Project management requires management of all of the following • The most distinguishing element of Colliers’ process is our ability knowledge areas: Integration, Scope, Time, Cost, Quality, Human to lead. That means mitigating, avoiding or removing those risks Resources, Risk, Procurement and Stakeholders. While each of these is and obstacles that prevent our clients from achieving their strategic valuable, we regard this level of services as “coordination” and the bare objectives. We recognize that the delivery of all projects is more than minimum of service that our clients require in all projects. just establishing a new space. Colliers seeks to align every element of Management your project to your bigger picture goals. Leadership is the highest- • Every knowledge area contains within it an element of Risk. Colliers’ value contribution we can provide. It is the basis on which we establish project managers recognize that we add value to our clients’ projects by partnership with our clients.. substantially mitigating the risks associated with every project element. Colliers professional practice playbook We regard this level of service as management. • A critical aspect of our service platform, Colliers’ Playbook guides our project managers utilizing lessons learned and best practices in delivering projects for our clients.

8 | Retail Continuum Strategy

Portfolio Site Management Selection

Store Design & Delivery

Platform

Our core business

The discipline of project management informs everything we do.

Professional practice playbook The Playbook is a collection of best practices, lessons learned, tools and templates our PMs use to deliver exceptional service. It is a living document, which we update as we innovate. It is based on the PMI’s Project Management Book of Knowledge (PMBOK) and our own thought leadership.

Publications Colliers subscribes to The Legal Edge, Construction Law, and Goodman’s Construction Update, and provides desktop access to staff. Our clients will continue to benefit from our knowledge of the latest procurement, construction contract, and industry trends.

Finding value Our pursuit of continuous improvement helps us deliver value for our clients. We have developed services like Colliers’ Bid Document Review™, which reduces cost and risk to owners at tender. No other firm offers this comprehensive review of tender documents..

Lean Six Sigma We can offer a Lean Six Sigma approach to your project delivery to help reduce downtime and achieve operational excellence.

Retail Continuum | 9 Portfolio management

Lease portfolio/administration & facilities management.

• Lease abstracting • Portfolio management • Critical date tracking • Renewal/extension/relocation • Landlord CAM audits • Excess space disposition/lease termination • Property tax assessment – review/appeal • ADA/legal compliance • Real estate expense budgeting • Physical refresh, repair, maintenance, remodel • Lease payments

Process

Lease administration Facilities management • Process and collect accounts receivables • Engage fully-integrated real estate transaction team to address • Manage subtenancies lease-related acquisition and disposition issues • Create benchmarking reports • Develop formal standards to ensure consistency and cost reduction • Review leases and implement cost-savings initiatives • Leverage procurement process to consolidate vendors, provide • Manage critical dates and lease options volume discounts, and reduce operating expenses • Process estoppels, SNDAs, and certificates of insurance • Develop predictable and accurate costing models • Review and reconcile invoices • Implement state-of-the-art financial system to track costs and • Perform variance analysis identify positive trends for replication throughout the portfolio • Optimize resource allocations • Implement state-of-the-art, web-based work order system and call-center help desk • Engineering for major mechanical and electrical failures in existing facilities

10 | Retail Continuum Strategy

Portfolio Site Management Selection

Store Design & Delivery

Resources

Lease Administration

A lease means more than simply securing the space where you do business. For most companies, real estate represents the second-largest expense after personnel. Whether your company operates in one location or hundreds, we take the time to understand your concerns for cost, stability, and flexibility. Our services include lease abstractions and database management, monthly rent verification and payment schedules, lease audits, and equipment lease management. Colliers’ lease administration drives significant savings for our clients, saves time each month through the automation of rent payments from databases to accounts payable, and ensures you’ll never miss a critical lease date.

• Database selection and construction • Lease abstractions and database management • Monthly rent verification and payment schedules • Lease audits • Transaction project tracking

Geographic information systems (gis)

Colliers’ approach to facilities management is unique in our industry. We have identified the subtle drivers that enable us to manage property at a higher standard and maximize asset value. While most firms just quantify asset value on a balance sheet, we take into account factors such as tenant loyalty, the relationship and regular contact between managers and tenants, top tenant service requests, and new opportunities for mutually beneficial tenant collaboration. These factors are proven to add asset value over time by reducing turnover and operational costs, and improving a building’s reputation in the market.

Retail Continuum | 11 Proven success

Swatch Kohl’s Ole Red/Opry City Stage

Challenge When Switzerland’s biggest Challenge For the first time in its history Challenge Ryman Hospitality Properties multi-brand watch company sought to Kohl’s was faced with the challenge is renowned for their best in music expand into major cities across the United of closing multiple stores across the entertainment, especially the country States, Swatch Group (Breguet, Harry Wi). country. Despite a recession-depleted music scene, and have been frequented real estate team, Kohl’s was a long by the biggest names in music. Ryman Strategy Swatch Group introduced a established success story with deep issued an RFP to secure national new corporate plan to expand into very brokerage relationships. Colliers would representation for the roll out of Blake high profile locations and lengthen the need to overcome these relationships by Shelton’s Ole Red locations in 12 markets terms of certain key stores in major cities utilizing a broad comprehensive national across the country and Opry City Stage nationally as well as internationally. Given this backdrop, the team evaluated the platform, local market expertise and (20,000 SF) in key tourist locations. locations in question and determined support resources second to none. to either blend and extend better Strategy Colliers devised a strategy to performing locations and/or enter new Strategy Through multiple meetings and locate venues in major markets in the leases in more desirable locations. listening sessions, Colliers identified the U.S. that would take into account the rich challenges that Kohl’s faced and tailored history of Ryman’s historical properties Results The team implemented an action a disposition strategy. After starting with and bring this history to their locations. plan to ensure that Swatch Group’s an in-depth review of the respective lease Colliers engaged our national network multiple brands were correctly positioned abstracts, Colliers was able to understand of brokerage service professionals, in the premier retail submarkets within the DNA of each asset, their positions identifying lead advisors with in-depth select cities across the U.S. The result within the markets and the various knowledge in each market through a included the leasing of a 16,000 SF challenges that each faced. thoughtful and structured process. This Chicago store for Omega and Tourbillon allowed both the client ant the brokers (Michigan Avenue), Harry Winston and Results Colliers was awarded the easy access to information sharing, Swatch in San Francisco (Post Street) and disposition assignment, thus beating moving deals forward and proactively Tissot and Blancpain in New York (Fifth out a competing firm. After quickly identifying potential hurdles. Avenue). The team also negotiated a and comprehensively analyzing each blend and extend for two Fifth Avenue asset and respective market, Colliers’ Results Since securing representative locations, Omega and Bregeut, while at the same time securing new locations developed a two-pronged strategy with a for Ryman in November of 2017, four in the Gold Coast of retail — the Upper strong ground game. Colliers brought in locations are underway in four markets, Fifth Avenue retail corridor. On an their local market real estate experts and moving quickly toward achieving their international scale, The Team also targeted all likely prospects. In addition, goal of opening locations in Tier 1 assisted in leasing Swatch, Omega, they implemented a top down direct markets including Orlando, Las Vegas, Bregeut and Tissot in Istanbul, Turkey. marketing approach by promoting the LA, Dallas, Chicago, Houston, Washington, assets as a portfolio to corporate real Cincinnati, and Louisville by early estate directors nationally. Q3 2018.

12 | Retail Continuum Strategy

Portfolio Site Management Selection

Store Design & Delivery

Retailer & restaurant representation (sampling)

• Apple • Luxotica • Ashley Furniture • Morton’s • AT&T • Nest Fragrances • Audi • New Balance • BJ’s Brewhouse • Nobu • Blo Blow Dry Bar • Orangetheory Fitness • Chase Bank • Palm Restaurants • Cinemark • Pieology • Citibank • Ponte Gadea • Deciem • Pret a Manger • Fresh City • Sola Salon • Hershey’s • Spartan Nash • Illy Coffee • Sprint • iPic Theaters • Target • Lole • The Capital Grille • Louis Vuitton

Retail Continuum | 13 We’ve got you covered

Our Difference We are enterprising. As an industry-leading global real estate company with more than 18,000 skilled professionals operating in 68 countries, what sets Colliers International apart is not what we do, but how we do it.

Our unique culture encourages our people to think differently, to share innovative ideas and to create effective solutions that accelerate our clients’ success. Many of the world’s most innovative and successful companies choose us when they need trusted, expert advice.

Our Services The foundation of our service is the strength and depth of our specialists. Our clients depend on our ability to draw on years of direct experience in their local markets. Our are Hot althc els & professionals know their communities and the He Ho sp ge it a In a industry inside and out. Whether you are a r ing vest li o eer M me t t gin ana nt y S En gem f e l nt local firm or global organization, we provide e In S d u V s creative solutions for all of your real estate e a t s c A lu n d a r r a v t i r i a e u is o t s o n l needs. n r n I y &

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Founding member of the World Green Building Council Revenue Established in Transaction value Managing $3.5B 68 $129B 2B (US$) countries (US$) (square feet)

Recognized and ranked 14 consecutive years, more than any other real estate firm Lease/sale transactions Assets under management Comprised of 70,000 33B+ 18,000+ professionals

Ranked in the top 3 most recognized All statistics are for 2019, are in U.S. dollars and include affiliates global commercial real estate brands by The Lipsey Company

Retail Continuum | 15 colliers.com/us/retail

Anjee Solanki National Director, Retail Services | USA +1 415 288 7871 [email protected]

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