OUTPOST Outpost Properties, LLC PROPERTIES Town of Cohasset Planning Board Scituate Hill Development – Hearing #2 July 28th, 2021

Outpost Properties, LLC (hereinafter “Applicant”) appreciates the Planning Board’s time spent in consideration of the Applicant’s proposed development at 20, 25 and 30 Scituate Hill. During the Planning Board’s hearing on Wednesday June 23rd, 2021, the Planning Board requested further information from the Applicant. The Applicant’s responses to the Planning Board’s inquiries regarding: Needs, Parking, Mail Delivery, Signage & Wayfinding, Traffic, Building Heights & Coverage, and Sustainability are each outlined below.

Needs Assessment:

The Applicant directs the Board to the Needs Assessment (“the Assessment,” annexed hereto as Exhibit A) previously submitted as part of the Applicant’s Site Plan Review Application filed on May 23rd, 2021.

In the Assessment, the Applicant summarizes the macro trend of standardized remote work policies across the global corporate landscape. The Applicant included in the Assessment, market analyses conducted by Morgan Stanley and published on February 22, 2021 that present an overwhelming argument for a permanent increase in the amount of people that will be working remotely at least three days per week going forward. Morgan Stanley’s analysts predict an increase of 3x-5x in the number of employees working remotely going forward. At the time of the original report, the public statements by 53 publicly traded companies (representing ~$11T of market capitalization of the ~$53T publicly traded market) regarding their future plans for remote work were captured. Within those 53 publicly traded companies, 85% of those companies advised that they had made a permanent shift to a hybrid or fully remote working model. Morgan Stanley produced a more recent report published on May 20, 2021 which is annexed hereto as Exhibit B, providing a timelier, but just as overwhelmingly, pro-remote work go-forward scenario. The updated report includes nine new companies, seven of which plan on hybrid/remote work going forward.

Separately, the national trends and sentiments of both employers and employees have been well captured by the unbiased thought leader McKinsey & Company (hereinafter “McKinsey”), in the article dated July 9th, 2021, and titled, “It’s time for leaders to get real about hybrid.” (McKinsey Article annexed hereto as Exhibit C). The Applicant finds the following quote to be particularly pertinent to the discussion of the need for the proposed Scituate Hill development:

“Instead of directing a rah-rah return to the office, leaders would be wise to focus on deeper listening and meeting their workforces where they are today. It will be important for leaders to acknowledge, for instance, that they don't have all the answers—as their companies transition to hybrid working models, they will still be trying to discover what the right longer-term working model (the one that works for most employees) will be. It will also be important for leaders to signal that they hope to make their employees partners in designing the future of how their companies work.”

1 At the local level, some of Massachusetts’ largest and most respected employers, ranging from defense stalwart Raytheon1 to the prominent financial giant John Hancock2 to decade-old, internet marketer HubSpot3, have all made strong and public commitments to remote work policies. In addition to having a happier, more balanced, and more productive workforce, one common and important reason that companies cite for the adoption of remote work policies, is to help companies maintain an equal and diversified workforce. In March of this year, Governor Charlie Baker spent $1.6 million to commission McKinsey to produce a separate, wide-ranging report about the future of work in Massachusetts, with an eye on using the findings to develop policies around keeping the state economy strong in the wake of the COVID-19 pandemic.

The McKinsey report, titled “Preparing for the Future of Work in the Commonwealth of Massachusetts4”, referenced in the article annexed hereto as Exhibit D (link to full report in the footnotes below), was published this past week (7/13/21), and offers projections on some of the trends and concerns cited by local executives about changes in the Massachusetts economy post-pandemic. One of the report’s primary conclusions is that remote work could shift the center of gravity away from urban cores to more residential areas. Nearly one-third of Massachusetts workers could work remotely one to three days a week, according to McKinsey’s modeling, and the MBTA Commuter rail ridership could plummet by 15% to 50% in the long-term.

At the micro-local level, the Applicant highlights in the Needs Assessment the record high amounts of commercial office space currently on the sublet market not only in Boston, but nearly every major metropolitan area in the United States. Further, the Applicant in the Needs Assessment presents local demographic information that demonstrates the disproportionately large amount of office workers in Cohasset and the towns surrounding that would be most inclined to occupy remote office workspace like that being proposed for development on Scituate Hill. Finally on this point, the Applicant includes a comprehensive list of competitive remote work and existing commercial office locations, with pricing and physical characteristics, to demonstrate that the proposed development is superior to the competitive set in every regard.

The Applicant further points out in the Assessment the unique design elements and attributes of the proposed community development that are not available elsewhere, and certainly not in any existing commercial vacancies in the market. These differentiating attributes: privacy, sense of possession, rightsized spaces, community, daylighting, amenity, tech-enablement, and fiber-optic connectivity, are the factors that drive The Applicants’ proposed development’s superiority. The Applicant’s market research demonstrates that these attributes can only be all-inclusively obtained through tenancy at the proposed development on Scituate Hill. If these important, modern design elements that will be made available to prospective tenants at the Applicant’s proposed development could be offered via more cost-effectively obtained, alternative locations, the Applicant would be placing greater consideration toward those options. ______

1 https://www.cnbc.com/2021/05/18/raytheon-to-cut-office-space-by-25percent-as-it-embraces-hybrid-work- .html

2 https://www.bostonglobe.com/2021/07/14/business/john-hancock-wont-require-employees-come-back-office- until-january/

3 https://www.hubspot.com/careers-blog/future-of-work-hybrid

4 https://www.mass.gov/doc/future-of-work-in-massachusetts-report/download

2 The Applicant notes also that the private, dedicated offices within each coworking facility in the market are running at strong occupancy percentages. Upon inspection in early July, the eSpace in Hingham Shipyard had nearly all private offices occupied. The newly opened eSpace private offices in Scituate were fully occupied when a query was made as to their availability in the early summer.

From a municipal planning point of view, the Applicant has annexed as Exhibit E a recently published “Suburban Mayor’s Open Letter to Boston Commuters” written by the Kassandra Gove, Mayor of Amesbury, MA. In the Letter, Mayor Gove highlights the benefits of remote work on local communities, the need for cities and towns to upgrade their remote work facilities, and the “above and beyond” approach that the Mayor and the City of Amesbury have taken when it comes to accommodating remote work needs. Mayor Gove’s sentiments are perhaps best summarized by the following quote:

“The traditional model of working in an office is gone, and a new model of working anywhere and everywhere is here. But it’s not enough to have a great local coffee shop (of which Amesbury has many). We have to go above and beyond to create spaces where people can gather, collaborate and yes, even work.

When I talk with residents, many of whom used to commute to Boston, they are excited to spend more time here and with their families.

Having more people working remotely is good for them and it’s very good for our businesses. Imagine how many people will replace getting their morning commuter coffee at the train station and instead will visit their local coffee shop. Rather than an evening commute, they dine out. When people run out at lunchtime to do errands, they’re supporting local businesses in their community. It’s a win-win for everyone — companies included, who are saving money on office space and infrastructure!”

It is important to note that Amesbury is a town that, like Cohasset, is only approximately 40 minutes from Boston by car with 82% of the town’s population being office workers vs. Cohasset’s 92%.

Parking:

The development’s proposed parking supply exceeds the requirements of the Cohasset Zoning Bylaws. Per the Bylaws, one parking spot per 200 square feet of net building area is required. The Project’s net building area is 14,088 square feet resulting in a total required parking count of 70.4 spaces. As designed, the Project provides 80 parking spaces or approximately 1 space for every 176 square feet of net building area, exceeding the requirements of Bylaws by more than 10%.

Four accessible parking spaces will be provided in accordance with ADA and AAB requirements. In addition, 2 bike racks and a handful of electric vehicle charging stations will be provided in support of the project’s sustainability goals.

The Applicant plans to actively manage parking demand on site via dedicated parking spaces, parking sticker decals, and on-site property manager inspections.

3 Mail Delivery:

The Applicant contacted the USPS Postmaster for the town of Cohasset, who provided guidance on how mail delivery could be best administered at the site. The Postmaster’s main suggestions included central or strategically placed P.O. Box installations, and the delivery of packages to a central location for pick up. The Applicant feels the Postmaster’s suggestions would be in the best interest of all parties involved with the site, and the design and operations of the proposed development will be conducted in accordance with these suggested delivery methods.

Signage & Wayfinding:

Individual tenant signage at the proposed development, if any, will be modest and consistent with the overall character of the project. The Applicant envisions small signage placards at the units themselves with some helpful wayfinding signage at select locations within the Campus Community. A sign for the community of “Outpost – Scituate Hill,” is all that would be contemplated on Route 3A itself. A numbered system with appropriately named driveways around the campus are also at the forefront of the Applicant’s anticipated wayfinding program. Some ideas for driveway names currently are “Minot View Way” for the most elevated driveway where views of the Minot Ledge Lighthouse are available. Lower driveways may be named “Scituate Hill Terrace” and “Outpost Path.” Subtle, wayfinding signs with logical placement throughout the campus directing occupants and visitors to numbered units is being given greatest consideration. The Applicant is prepared to meet and work with the Town Clerk to come up with a system that makes best sense for all users of the proposed development. The Applicant will be happy to additionally work with the Town of Cohasset Fire Department to establish the safest system possible.

Traffic:

VHB has conducted a traffic impact and access study (TIAS) in accordance with industry standards. The TIAS shows that the site-generated traffic will have minimal impacts. It is also important to note that the Project trip generation is expected to be substantially lower than the previously approved commercial subdivision plans for the site.

Some additional information regarding traffic and site history are outlined below: • The Property Owner was conditionally approved for a commercial subdivision on which the proposed development site resides, this subdivision contained a larger, multi-use development with significantly more impactful traffic. The conditions of the approval included that the seller, once every two years for a period of ten years, apply to MassDOT for a traffic light at the King Street/Chief Justice Cushing Highway intersection. Each application has been denied.

• A portion of traffic to the site is comprised of cars that would otherwise have carried commuters into Boston, to the immediately proximate MBTA parking lots or the nearby Ferry parking lots. The routes to these MBTA parking lots brings cars directly by the King Street/Chief Justice Cushing Highway intersection where the Applicant is proposing the development.

Building Heights & Coverage:

The Cohasset Zoning Bylaw establishes a maximum allowable building height for the property of 45 feet. The Bylaw defines Building Height as “The vertical distance above the mean level of the pre-construction

4 ground within 10 feet of the outside walls of the structure. On a flat roof, height is measured to the top of the parapet or to the top of the main roof surface, whichever is higher. On a sloped roof, height is measured to the midpoint of the roof surface; the midpoint shall be half the distance from the plate line to the ridgeline measured over the outer surface of the roof boarding, and the ridgeline may not be higher than five feet above the maximum allowed height. The limitations of this clause shall not apply to projections not used for human habitation which, in the aggregate, do not exceed 5% of the roof area, including without limitation chimneys, antennas, railings and cupolas”.

There are 21 structures in the proposed project. The building height has been calculated for each and a figure illustrating the calculation has been annexed as Exhibit F demonstrating the Project’s compliance. The maximum Building height proposed is the Sales/Management Building at approximately 35.5 feet.

Sustainability:

The Applicant recognizes and values the importance of sustainable practices. The proposed development, as currently designed, brings exciting, above standard, opportunities for sustainability. The Applicant’s novel office development approach affords sustainability not available in traditional commercial office construction, and certainly not available in previously contemplated buildings on the proposed development site on Scituate Hill. A “low impact” frame of mind has been applied to each area of the development, as has benchmarking against Stretch Code and LEED Standards. Opportunities for sustainability exist from the beginning of the proposed development into its ongoing operation, and are summarized as follows:

Site Preparation & Layout

• The proposed development works with the existing topography to minimize site “cuts and fills” to the extent practicable. The relatively small, split level building footprint allows the site to be terraced into the slope, minimizing material export via truck travel.

• The Project will manage Stormwater in accordance with the Massachusetts Department of Environmental Protection Stormwater Management Standards. A groundwater recharge system has been designed to exceed requirements. In addition, the site layout provides disconnected vegetated/landscaped areas that reduce the temperature of runoff and allow additional opportunities for recharge.

• Site and building orientation will provide efficient, passive solar heat from the largest window areas on the south elevations, while insulated roof slopes will predominantly face north.

• LEED provisions include extensive natural light in workspaces to not only enhance the wellbeing and productivity of occupants, but also to reduce the need for daytime lighting. To enhance this sustainable practice, LED light fixtures will be utilized with photosensitive controls.

• Electric charging stations will be added to encourage the use of reduced emission vehicles. The proposed units are designed to include showers, which may encourage alternative commuting methods such as walking, running, or bicycling.

5 • Bike racks will be provided at the sales/management building and the individual units provide adequate space for bike storage.

Construction & Design

• Simple, wood-frame construction will be employed, built to exceed the Stretch Energy Code – even though the proposed development does not fall under the jurisdiction of Massachusetts Stretch Energy Code. Wood frame construction is favorable as it is highly efficient with low embodied-energy materials.

• The proposed development’s landscape will include native, low-maintenance plant material. Plant materials have been prioritized for their salt tolerance and value in providing food and cover for wildlife.

Ongoing Energy Consumption

• The proposed units are small and efficient, requiring significantly less energy for heating and cooling than traditional commercial office buildings. The heating and cooling of large, open common areas such as lobbies and corridors will not consume energy as is the case in traditional office buildings.

• The energy source will be electric rather than fossil fuel, meaning the site itself will not produce any emissions.

• Efficient heat pumps for each unit will allow for tech-enabled, individual unit control for occupied vs. vacant units.

• Sustainable plumbing and lighting fixtures will be employed, where appropriate.

The Applicant thanks the Planning Board for their time and consideration and looks forward to answering any further questions that the Planning Board of the Town of Cohasset may have.

6 EXHIBIT A

OUTPOST NEEDS ASSESSMENT: SCITUATE HILL COHASSET, MA PROPERTIES

Applicant: Outpost Properties/Mark J. Tryder

Issue: Assessment of need for a community of seventy (70) – seventy-five (75) safe, private, efficiently-sized, individually accessed, office units on eight (8) acres of commercially zoned land on Scituate Hill in Cohasset, Massachusetts (hereinafter “premises,” or “development,” or “community)

At the peak of the COVID-19 Pandemic tragedy, 44% of United States office workers were working from home full time, up from 17% prior to the Pandemic. The rapid, nearly 300% increase standardized hybrid/remote work as corporate policy and created a historical and seismic shift in demand away from traditional, centralized officing to hybrid/remote work solutions. Based on this demand shift, and on the Applicant’s studies of market demographics and the current supply of appropriate office options for remote workers in the south shore Suburban office market (in particular, Cohasset), the Applicant concludes that a need exists for a community of safe, high- quality, private office units such as that the Applicant proposes to build on Scituate Hill.

According to a recent Morgan Stanley survey (Attachment A), nearly 60% of U.S. workers are expected to work remotely at least three days per week going forward. In the same report, Morgan Stanley collected data from 53 publicly traded companies (representing ~$10 trillion of the ~$53 trillion public market or 20%) demonstrating that 85% of the tracked companies have announced permanent hybrid/remote work policies going forward, or 99% when measured by market capitalization. Only five of the tracked companies have publicly expressed an interest to return to the office full time. It should be noted that many of tracked companies maintain offices in the Boston market. The activity tracked above has translated into the most square footage ever recorded on the Boston sublease market, which as of 4Q20 represented 23% of the total square footage in the market. Other major markets such as New York, San Francisco, and Washington DC are following similar, if not far worse, trends from the viewpoint of traditional commercial office ownership.

The percentage of white-collar workers in Cohasset and towns surrounding (Hingham, Scituate, Norwell, and Duxbury) is disproportionately larger than the state average (92% vs 44%, as seen on Attachment B). The applicant feels the discrepancy in the percentage of white-collar workers indicates proportionately greater demand for remote work solutions in the area. Furthermore, the Applicant feels that the high commuting barriers (“door-to-desk” commute time is well over an hour on average when commuting to Boston), combined with the strong lifestyle draws to the area’s beautiful Beaches, Harbors, State Parks, Social Clubs, and Family and Community Events (school, religious, sports, etc.), create upward pressure on demand for remote work solutions.

The Applicant feels that remote work solutions within the grounds of the home, while perhaps on the surface appearing convenient and cost effective, pose threats to health and wellness that both employees and employers alike have identified to be unsustainable. This sentiment is perhaps best captured in the following quote from Jagdish Khubchandani MBBS, Phd and member of New Mexico State University’s department of Public Health Sciences, who has been spearheading research efforts on remote work conditions:

7 “American homes were not designed to be offices; indoor environmental parameters are not well examined in the home office setting. More people are working a greater number of hours, and there are no office time boundaries. The lack of scheduled work times will take away from leisure time and as is, people are socializing less and there is lesser human contact, which is a big risk for mental health issues.”

For those that place importance on the health, wellness, and productivity benefits realized by leaving the home daily to perform work functions, the Applicant concludes from their market studies of available remote work options that there is a lack of supply of safe, high-quality, efficiently sized and priced executive office suites. Furthermore, no option exists where socialization and a sense of community can be as easily and safely achieved as at the Applicant’s proposed Scituate Hill office community.

For the purposes of the Applicant’s study of available remote work supply, the target market is defined as the surrounding towns listed above; remote work options have been defined as coworking facilities (such as Regus and Workbar) and as executive offices within commercial office buildings. The Applicant has compiled a list of comparable leases (Attachment C) in the market that the Applicant feels are inferior to the Applicant’s proposed project in several ways including safety, size, privacy, and community. The coworking private office leases listed range in size from 35 sf to 120 sf, significantly smaller than the square footage per unit within the community that the Applicant is proposing. Each coworking option listed forces contact with others through common entrances, common in-office amenities (such as coffee stations and central refrigerators) and perhaps most importantly, through common bathrooms. The Applicant’s proposed units will allow for safety and privacy in each regard. Modern and safe common amenities (such as private and common greenspaces and conference rooms) as well as an intentionally communal site plan, will further differentiate the proposed development from the competition for the many employers and employees that place importance on socialization, collaboration, and community.

The premises sit on a corridor of Route 3A along which many of the development’s target customers travel frequently (15,000-22,000 VPD as of 2014 MassDOT traffic study). The Applicant’s personal experiences and first-person interactions with professionals who live in the area reveal that one of the main advantages that professionals who live in the area have found in remote working is proximity to their family, including their children and their children’s schools and activities. Having an office on Scituate Hill, along this familiar and easily accessible highly amenitized corridor, would allow these professionals to satisfy both their business and personal demands.

The premises sit in an amenity rich area (see Attachment D). Occupants will be near to fitness facilities, various levels of dining, municipal installations, and shopping. Although the target customer will be someone who embraces the advantages to working closer to home and no longer commuting into the city; the premises is located .2 and 5.4 miles from the commuter rail and ferry terminal, respectively, allowing for access to Boston when necessary. It should be noted that as

8 commuting demand has weakened, the MBTA has signaled reductions in service to the South Shore markets. The Applicant feels that such a reduction in MBTA service, coupled with a difficult driving option to Boston creates upward pressure on demand for remote office solutions. The drive to Boston from the subject property requires a relatively long drive just to get to Route 3 (16 minutes) and from another relatively long drive the Route 93/95 interchange (16 minutes). The applicant feels that the premises offers an option to many office workers in the area no longer wishing to spend such long periods of time in their cars, where productivity is limited, and risk of endangerment is high. The applicant feels that it warrants mentioning that 24% of all fatal traffic accidents take place during peak commuting hours, putting aside the environmental benefits of fewer cars traveling shorter distances each day.

CONCLUSION: The Applicant shall provide a superior option, not available elsewhere in the market, which will be in high demand due to its safety, size, privacy and social and collaborative options. The development will provide a unique, health and wellness focused opportunity for remote working for people that have high demand jobs and high family obligations and wish to experience a more balanced lifestyle. The Applicant has compared their proposed developed to other available lease options and believes that it is the only development of its type, and certainly of its type in the area.

Needs assessment-scituate hill-tryder 041421

9 Attachment A

February 22, 2021 09:40 PM GMT

MORGAN STANLEY & CO. LLC Office REITs | North America Vikram Malhotra EQUITY ANALYST [email protected] +1 212 761-7064 WFH Tracker: Hybrid Model Alina Pappas, CPA RESEARCH ASSOCIATE [email protected] +1 212 761-2528 Here To Stay; Specifics On Real Estate Investment Trusts North America Office Needs Are Emerging IndustryView In-Line

Our updated tracker reveals post COVID work from home Exhibit 1: While the majority of company's expect to strategies are being mapped out and while still early, more begin phasing employees back Mid 2021, many recently pushed back their re-opening dates to post labor day. specifics around future office space needs are beginning to Return to Work Time Line Tracker 0% 20% 40% 60% 80% 100% emerge. While Office can work NT, we remain concerned over

the medium-term prospects. Reiterate UW on VNO and OW 21% 38% 24% 17%

on PGRE. EARLY MID LATE SOMETIME 2021 2020 2021 2021

Source: Alpha Sense, Company Data, Morgan Stanley Research Office REITs outperformed today but this follows the last 30 days during which the sub sector was the worst performing among REITs - Office was down 300bps where REITs were up 500bps. Today implied cap rates for the costal office REITs range in the mid to high 6% range (excluding BXP) and we believe this implies stocks are pricing in about a 10% correction in market rents. We think that is consistent with what office REIT teams have been indicating but we believe still may be too optimistic. However, as we have highlighted in prior work - see Long / Short View on Office - office stocks can continue to work near-term given the ongoing window of opportunity between a recession being fully priced in and work from home impacts (WFH). Given this backdrop we reiterate our UW on VNO and relative OW on PGRE. We update our WFH tracker with incremental 4Q data and additional companies (see Exhibit 2). In our prior research, Tracking Return To Work In The US And WFH Views on Office CRE, we introduced our work from home tracker following corporate announcements regarding 1) return to work, 2) longer-term thoughts on adopting a hybrid work model and 3) impacts of WFH on office real estate. Following 4Q earnings, we update our tracker for incremental data from companies on our original list and have added 7 new companies to our tracker. Our updated tracker reveals that more specific post-COVID WFH strategies are being mapped out and specific details around the implications for their office space needs are beginning to emerge. We highlight 3 main findings from our 4Q WFH tracker:

1. A broader return to work will begin in the summer/post labor day. Morgan Stanley does and seeks to do business with Company and REIT commentary suggests that the majority of companies companies covered in Morgan Stanley Research. As a result, investors should be aware that the firm may have a will begin to ask employees to return to the office during the summer or conflict of interest that could affect the objectivity of post-labor day. Our tracker suggests 38% of companies are planning for Morgan Stanley Research. Investors should consider Morgan Stanley Research as only a single factor in making mid 2021 and 24% are planning for late 2021. Overall this partly depends their investment decision. on the rate of vaccination of the broader population. Assuming daily For analyst certification and other important disclosures, refer to the Disclosure Section, located at the end of this vaccinations increase at the current rate to ~2.5M/day (from ~1.5M now), report.

10 our biotech analyst Matthew Harrison expects that ~75% of the eligible population (12+) could be vaccinated by mid-summer. We note that we view the return to office time-line and increases to office utilization as precursors to office fundamentals.

2. A hybrid work model is here to stay - specifics are emerging. Companies are beginning to lay out their work from home policies and provide specifics around how they will impact their space needs. A few examples: 1) Dropbox announced their Virtual First work model, which is leading them to market a portion of their space for sublease, 2) VMware outlined that they expect 20% of their employees to be office dwellers (vs 80% pre- COVID), 30% will be hybrid, and 50% will be permanently distributed - see Exhibit 4, and 3) Salesforce announced that they expect more than 65% of their workforce to come into the office 1-3 days a week (up from 40% during the pandemic) and in turn that they likely won't keep every space in every city they are in. On the other hand there are some financial firms, including JPM, that have stated that the real estate savings from WFH won't be a game changer.

3. Is the increase in sublease space cyclical or WFH related? During earnings many office REITs pointed out that companies tend to decrease office space during a recession because of a reduction in head count and that the latest office space cuts are less WFH related. While this is a fair argument we think this is only partially true. For example Wells Fargo announced in their 4Q20 financial results presentation that they plan to reduce 15-20% of their 46mm sq. ft. office real estate by year-end 2024. While some of this reduction may be a result of their head count cuts, management highlighted that forced remote work has created an opportunity for them both on the flexibility front for employees and on the ability to become more efficient with travel and real estate. Similarly SunLife, beginning in the first quarter of 2021, announced during 4Q earnings that they will reduce and consolidate their real estate footprint across various sites in Canada and the U.S., reflecting a change to a more flexible and virtual work environment. We believe more specifics from a broader group of companies will emerge in 2H21.

11 Work From Home Tracker & 4Q Commentary

Exhibit 2: Work From Home Tracker

Return to Company Name Ticker Mkt Cap WFH Flexibility Post COVID Office Footprint Office REIT Top 10 Tenant Office Timeline New Companies Added F5 Networks, Inc. FFIV.N 12.26 Mid 2021 Hybrid Reduce OPI LVMH LVMH.PA 272.82 Early 2021 CISCO CSCO.O 193.02 Mid 2021 Hybrid Sun Life SLF 29.05 Hybrid Reduce Deutsche Bank DB 23.94 Mid 2021 Hybrid Reduce Jeffries JEF 7.23 Hybrid Reduce Dropbox, Inc. DB 23.94 Mid 2021 Preference for Remote Reduce Internet Companies Amazon AMZN.O 1,636.54 Mid 2021 Hybrid for non-warehouse employees Increase CXP, VNO Google GOOG.O 1,412.18 Late 2021 Hybrid Increase BXP, HPP, PGRE, VNO Facebook FB.O 744.84 Mid 2021 Hybrid Increase VNO Shopify SHOP.N 167.08 2021 Preference for Remote Reduce Booking Holdings Inc BKNG.O 93.91 Hybrid Reduce Uber UBER.N 108.10 Late 2021 Hybrid Reduce HPP Electronic Arts Inc EA.O 41.98 Late 2021 Hybrid Increase eBay Inc EBAY.O 42.17 Reduce SNAP Inc. SNAP.N 98.82 Early 2021 Hybrid Twitter TWTR.NB 57.69 Preference for Remote Remain the same CXP Pinterest PINS.N 53.99 Hybrid Reduce Zillow Group Inc Z.O 44.30 Preference for Remote Reduce Zynga ZNGA.N 13.14 Mid 2021 Hybrid Airbnb ABNB.n 120.87 Late 2021 Increase Technology & Software Companies Microsoft MSFT.O 1,817.45 Mid 2021 Hybrid Increase Salesforce CRM 226.28 Mid 2021 Preference for Remote Reduce BXP, HPP Vmware Inc VMW.N 60.73 Preference for Remote Increase Slack WORK.N 25.14 Mid 2021 Preference for Remote Box BOX 2.94 2021 Hybrid Media & Entertainment Netflix NFLX.N 239.26 Mid 2021 Preference for Office Increase HPP Viacom VIAC.N 38.69 2021 Hybrid Reduce SLG Banks JP Morgan JPM 451.20 Mid 2021 Preference for Office Reduce Bank of America BAC.N 298.80 2021 Preference for Office Reduce HIW, OPI Wells Fargo & Co. WFC.N 156.41 Early 2021 Hybrid Reduce CXP Citigroup C 136.95 Preference for Office Reduce Goldman Sachs GS 108.59 Late 2021 Preference for Office Increase UBS Group UBS.N 59.90 Hybrid Reassess BNY Mellon BK 37.50 Late 2021 Hybrid Reassess American Express Company AXP.N 106.10 Late 2021 Hybrid Reduce State Street STT 25.30 Hybrid Reduce Nomura NMR 18.95 Hybrid Reduce Barclays Capital, Inc. BARC.L 26.67 Early 2021 Hybrid Reduce PGRE First Republic FRC.N 29.04 Hybrid Remain the same PGRE Credit Suisse CS 34.37 Hybrid SLG Payments and Processing Visa Inc. V.N 437.56 2021 Hybrid Reduce MasterCard Inc. MA 330.96 Early 2021 Hybrid Increase Fidelity National Information Services FIS.N 81.36 Hybrid Reduce Square Inc SQ 124.72 Preference for Remote Remain the same HPP Fiserv Inc. FISV.O 74.66 Hybrid Reduce Global Payments Inc GPN.N 57.33 Hybrid Reduce Rocket Cos Inc RKT.N 40.22 Early 2021 Hybrid Remain the same Brokers & Asset Managers BlackRock Inc. BLK.N 108.32 Hybrid Remain the same The Blackstone Group Inc BX.N 83.97 Preference for Office Increase Charles Schwab Corp SCHW.N 116.17 Hybrid Increase T. Rowe Price Group, Inc. TROW.O 37.10 Hybrid Reduce Equitable EQH 12.76 Hybrid Reduce VNO Source: Alpha Sense, Company Data, Morgan Stanley Research

Exhibit 3: WFH Tracker Legend WFH Policy* MS Definition PREFERENCE FOR OFFICE The company requires its employees to go back to the office for the entire week. PREFERENCE FOR REMOTE Employees have the option to work from anywhere (from home, the office, or both). FULLY REMOTE The company mandates a work from home/remote policy post-COVID. HYBRID Employees are required to come into the office a certain number of days weekly, but not for the whole week. Office Footprint Reduce Close some office space due to reduced need. Increase Increase office space to allow for social distancing. Reassess Re-evaluating which could mean moving offices to a different market, close, or increase. *We recognize that there are different definitions and that companies could change their strategy. Source: Morgan Stanley Research

12 Exhibit 4: 4Q Commentary Around Work From Home

Company Source Commentary

"In the fourth quarter of 2020, we announced a new Virtual First work model pursuant to which remote work will become the primary experience for all of our Dropbox , Inc. 4Q20 Earnings Press Release employees. As part of the Virtual First strategy, we will retain a portion of our office space to be used for team collaboration and a portion will be marketed for sublease." "The remote work environment has also catalyzed an increased focus on our location strategy. Last January, we expected that 40% of our employees Chairman & CEO, David Solomon would ultimately work from one of our strategic locations, and we will continue to evaluate the potential for that number to grow over time. We will Goldman Sachs 4Q20 Earnings Call alsolooktoexpandintonewstrategiclocationsaroundtheglobeaswellasconsolidateourfootprint,whereappropriate,inkeepingwithourevolving business mix." CEO, David Solomon, has opined that workers will be back in their offices by the end of the year.

Goldman Sachs David Solomon, CEO Solomon said, 'The big focus right now is we've got to get people vaccinated - we've got to get to the other side. I certainly would expect a lot of Goldman Sachs Bloomberg employees back in full by the end of the year. We will get through this, and I'm really hopeful that over the course of the next six months we see a real improvement.' CEO, Jamie Dimon Responding to a question on WFH savings post-COVID: "For real estate expenses, I'm going to say, $3 billion. o Even -- and I do think you can be much JPMorgan Chase Q420 Earnings Call moreefficientthanthat,butIdon'tthinkit'slikeagamechanger."

"I do believe that you lose things with people not being physically together. And so does it have to be for everyone all the time? No. And so I do think thatwe'llbeabletousethisasanopportunity,bothtocreatesomemoreflexibilityforouremployees,aswellastheopportunitytoreducethingslike Wells Fargo President & CEO, Charles Scharf travelandbecomemoreefficientwithspaceovertime. @ GoldmanSachsFinancialServicesConference ButIdon'tthinkitis--it'snot--we'renotgoingtobeatan extreme. We're not going to go back to exactly the way it was before, but we're certainly not goingtoliveinaworldlikethis.Ithinktherearehugebenefitsofhavingpeoplewithinclosephysicalproximity.Thisdoesn'thavetobe5daysaweek per se. That's a made-up number." Wells Fargo "~46mm sq. ft. of office real estate expected to be 4Q20 Financial Results Presentation reduced by 15-20% by year-end 2024."

"We're a company that believes strongly in co-location for lots of different reasons — culture, the ability to train and supervise, the nature of problem solving and Bank of America Cathy Bessant, COO & CTO creativity. And despite the fact that I read articles every day about productivity being higher in a work-from-home environment, we have not found that to be true. Interview with American Banker That doesn't mean that a lot isn't getting done, but typically it's getting done over a much longer day, which is not sustainable and not good for anyone's health and welfare. So we will be a company that does return to co-location. There will be a set of people who are high risk and therefore we'll customize solutions for them. But we will try to come back to the office. No question."

"When you get to working from home, we'll see how that plays out. There are a lot of our colleagues that would come back to the office tomorrow if it's safe. So Bank of America Brian Thomas Moynihan, Chairman, CEO & President once the vaccine is in, we'll adjust to see how that all works. And yes, we'll be able to be potentially more efficient with office space. But we started with 130 @GoldmanSachsFinancialServicesConference million square feet of real estate under use at the beginning of this decade. We are down to 70 million. We already have plans to go to 60 million. So this might help at the margin, but that -- we just have to keep executing the plans we had, and we're looking at all possibilities as a team under Anne Walker's leadership." I think, like most companies, we have been surprised at how fast and efficiently the company and our decision-making have worked in a completely virtual Jeffrey C. Campbell, CFO environment. While we now have the majority by count of our locations open to some number of colleagues, including our headquarters in New York, we still have American Express @ Bank of America Merrill Lynch Future of Financials Virtual very small numbers of people in our offices, probably in the low single digits around the globe on average. But the pace of decision-making, our ability as a global Conference company to work in a really coordinated fashion with people who are all over the globe, frankly, it's been better. And so we are spending a lot of time thinking about how we sustain that. We learned that nearly half of our employees want to come in only a few times per month, but also that 80% of employees want to maintain a connection to a physical space. So we are giving employees flexibility in how, when and where they work with three ways of working:

Salesforce Salesforce Blog Flex – When it’s safe to return to the office, most of our employees around the globe will work flex. This means they’ll be in the office 1-3 days per week for team collaboration, customer meetings, and presentations. Fully Remote – For employees who don’t live near an office or have roles that don’t require an office, they will work remotely full-time. Office-based – The smallest population of our workforce will work from an office location 4-5 days per week if they’re in roles that require it. We're not -- we don't need real estate like we needed before. I mean, these are new opportunities that we continue to recognize and that we see as tremendous for our future. Salesforce Mark J. Hawkins, President & CFO @ Salesforce.com Investor Day We're making a lot of decisions today as we begin to think about a post-COVID environment, including we're doing some minor lease rationalizations. We're beginning to explore what that might look like in the future. Salesforce expects more than 65% of its workforce to come into the office only one to three days a week in the future, up from 40% before the pandemic. An unspecified number of additional employees would be fully remote. Salesforce WSJ Chief People Officer Brent Hyder “We’re not going back to the way things were,” Mr. Hyder said in an interview. “I don’t believe that we’ll keep every space in every city that we’re in, including San Francisco.” Google "Looking ahead, we expect a return to a more normalized pace of ground-up construction and fit-out of office facilities, which translates into a sizable increase in Q4 2020 Alphabet Inc Earnings Call CapEx in 2021." Electronic Arts Andrew Wilson, Electronic Arts Inc. - CEO & Director, "FY '21 has been a year of outstanding growth while working through the challenges of the ongoing pandemic. Our execution continues to be strong even with our Q3 2021 Electronic Arts Inc Earnings Call employees working from home, and we expect that most will continue to do so through September." " In April 2020, we announced that most of our employees would have the flexibility to work from home through the remainder of 2020. In July 2020, we extended that flexibility indefinitely by announcing a permanent move to a distributed workforce for most employees. As we have transitioned to a remote-first workforce, we are also using this opportunity to diversify our workforce, as we are no longer bound by the geographic limits of our physical workspaces. Zillow Group 10K We expect that our offices will continue to be a place for teams to come together to enable productivity and collaboration. We are working to reimagine our physical workspaces to provide more space for collaboration and engagement when our employees do come into an office." We are also restructuring our remote work to more effectively use our time together and provide more opportunities to work asynchronously."

"We expect our new normal is 20% of our employees are office dwellers compared to 80% before COVID." We expect 30% of our employees will be hybrid, and Patrick P. Gelsinger, VMware, Inc. - CEO & Director 50% will be permanently distributed workforce. We'll have flipped the company entirely. And when we gather, it's not going to be because we're showing up in our VMware Inc VMware Inc at Goldman Sachs Technology and Internet hotels that are called office spaces, we're going to show up in our office spaces that are called collaboration centers, right? Because then we're going to meet Conference (Virtual) because we want a hug, right, because we want to celebrate, because we're doing innovation sprints, because we're doing culture building events, right, when we're together. But we are going to change the nature of our workforce entirely as we go forward. It will become more diverse, more flexible for people, better on human lives, better -- and lower cost as well. All of these, and we're seeing improved efficiency as a result." “We’ve been able to work seamlessly from home and could do this indefinitely, but we have heard from some teams that they would prefer a mix of working from home and coming into the office,” Zynga Frank Gibeau, CEO interviewed by San Francisco Business Times “We’re looking at a blend of in office with remote work,” Gibeau said. “We’re looking at a lot of scenarios.” "As we look at, for instance, with our team members and our workforce, our best expectation right now is that probably 50% to 60% of our team members are going to be in some type of a remote hybrid situation where they're working from home or remotely 2 to 3 days a week. They may be in the office 1 or 2 days a Dell Technologies, Inc. Thomas W. Sweet, Executive VP & CFO week, or they may be totally remote. @ Wells Fargo TMT Conference And so as a result of that, we're -- as you might imagine, we're reevaluating our real estate footprint pretty heavily right now in the sense of where do we need that to be, and how do we shift that over the next 24 to 36 months." Mastercard Reported by NY Post Mastercard is moving and expanding to 150 Fifth Ave. and it’s offering 77,344 square feet for sublease at its current city digs at nearby 114-116 Fifth Ave.

Deutsche Bank The Real Deal "Deutsche is in the process of relocating from its 1.6-million-square-foot office at 60 Wall Street to a 1-million-square-foot building at Time Warner Center in Columbus Circle. The new location has workspaces for 4,200 people, though it can accommodate all 4,600 current staff with flexible working arrangements."

“The office will remain our primary work location longer-term,” senior executives including Chief Operating Officer Rob Goldstein wrote in one memo sent to staff in November. “Employees will have increased flexibility to work remotely part-time, but full-time remote work will be done very selectively and with approval.” Blackrock Bloomberg BlackRock still plans to move its New York staff into 50 Hudson Yards, a new skyscraper on Manhattan’s west side, in late 2022 or early 2023, a spokesman confirmed this week. "In addition to the Corporate restructuring charge of approximately $20 million after-tax recorded in the fourth quarter of 2020 to simplify our organizational structure, we have also been developing a strategy for our workspace and redefining the role of the office, in a post COVID-19 world. Beginning first quarter of Sun Life Financial 4Q20 Earnings Press Release 2021, we will reduce and consolidate our real estate footprint across various sites in Canada and the U.S. These actions reflect a change to a more flexible and virtual work environment." The French luxury-goods giant instructed Tiffany’s corporate staff to return to the office two days a week beginning March 1, according to people familiar with the LVMH WSJ situation. “It’s critical at this time of change that we adopt a hybrid approach to onsite-remote working,” Source: Alpha Sense, Company Data, Morgan Stanley Research

13 Valuation Methodology and Risks

Paramount Group Inc.(PGRE.N)

Our PT of $10.50 uses a 5.7% equity market risk premium. We also bake in slightly higher cash flow in 2022 and beyond given higher than expected leasing (including a new street retail lease). Our terminal growth remains at negative 0.5% (75 bps above the current -1.75%) and we incorporate the latest 5yr monthly beta of 1.3

Risks to Upside

Exposure to higher growth West Coast markets leads to earnings upside Lease up of key Barclays space ahead of schedule Lower than expected WFH rates post-COVID Beneficiary of industry consolidation

Risks to Downside

Degradation in investor sentiment even further across the office REIT sector NYC office rent growth continues to decline Delays leasing up key vacancies within the portfolio amid COVID-19 uncertainty

Vornado Realty Trust(VNO.N)

Our PT of $37 is based on our DCF model which incorporates a 5.7% equity market risk premium, a terminal growth (which remains the same) at negative 1% and we incorporate the latest beta of 1.31. We also adjust our cash flows driven by incremental cash flow from new leases - primarily Facebook's new lease at the Farley building.

Risks to Upside

Strategic actions that bridge the private vs. public valuation gap. Pre-lease announcements at development assets Higher trajectory in street retail

Risks to Downside

COVID-19 leads to slower lease up of vacancies and lower occupancy Headlines of rising NYC street retail availability, sharp rent declines or store closures. Work from home become a bigger issue from a magnitude and time line perspective

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COVERAGE UNIVERSE INVESTMENT BANKING CLIENTS (IBC) OTHER MATERIAL INVESTMENT SERVICES CLIENTS (MISC) STOCK RATING COUNT % OF COUNT % OF % OF COUNT % OF CATEGORY TOTAL TOTAL IBC RATING TOTAL CATEGORY OTHER MISC Overweight/Buy 1477 43% 387 47% 26% 658 43% Equal-weight/Hold 1435 42% 348 42% 24% 642 42% Not-Rated/Hold 4 0% 1 0% 25% 4 0% Underweight/Sell 532 15% 87 11% 16% 227 15% TOTAL 3,448 823 1531

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19 INDUSTRY COVERAGE: Real Estate Investment Trusts

COMPANY (TICKER) RATING (AS OF) PRICE* (02/19/2021)

Richard Hill American Assets Trust Inc. (AAT.N) E (05/18/2020) $29.30 American Homes 4 Rent (AMH.N) E (11/15/2018) $31.33 AvalonBay Communities Inc. (AVB.N) E (12/10/2013) $178.01 Equity Residential (EQR.N) E (12/12/2016) $66.97 Essex Property Trust, Inc. (ESS.N) E (04/01/2020) $263.89 Invitation Homes Inc (INVH.N) O (08/11/2020) $29.98 Kimco Realty Corp. (KIM.N) O (09/14/2020) $17.67 Macerich Co (MAC.N) U (09/14/2020) $12.52 Regency Centers Corp (REG.O) E (12/17/2019) $52.80 Retail Value Inc (RVI.N) O (01/06/2021) $16.92 Simon Property Group Inc (SPG.N) O (02/11/2021) $109.43 Site Centers Corp (SITC.N) E (04/27/2020) $12.87 UDR, Inc. (UDR.N) O (11/20/2020) $42.22 Urban Edge Properties (UE.N) U (12/17/2019) $16.35

Ronald Kamdem, CFA Extra Space Storage Inc. (EXR.N) U (09/16/2019) $119.63 National Storage Affiliates Trust (NSA.N) E (08/07/2018) $37.72 Public Storage (PSA.N) E (01/22/2021) $234.70

Vikram Malhotra Boston Properties, Inc. (BXP.N) E (09/10/2019) $92.24 Broadstone Net Lease, Inc. (BNL.N) O (10/12/2020) $19.03 Columbia Property Trust Inc (CXP.N) E (03/03/2016) $13.79 DHC US (DHC.O) E (09/05/2019) $4.36 Duke Realty Corp. (DRE.N) E (10/07/2019) $40.99 EastGroup Properties Inc. (EGP.N) E (04/12/2017) $140.48 Healthcare Realty Trust Inc. (HR.N) E (08/15/2018) $29.26 Healthcare Trust of America Inc (HTA.N) E (08/15/2018) $27.52 Healthpeak Properties Inc (PEAK.N) E (03/20/2017) $29.78 Highwoods Properties (HIW.N) O (06/24/2020) $40.01 Hudson Pacific Properties (HPP.N) E (06/24/2020) $24.21 National Retail Properties Inc (NNN.N) E (05/16/2016) $42.25 New Senior Investment Group Inc (SNR.N) E (10/29/2018) $5.72 Office Properties Income Trust (OPI.O) U (12/13/2019) $24.74 Paramount Group Inc. (PGRE.N) O (10/10/2019) $8.86 Physicians Realty Trust (DOC.N) E (07/24/2017) $17.41 Prologis, Inc. (PLD.N) O (02/12/2020) $105.30 Realty Income Corp (O.N) O (05/04/2020) $61.09 SL Green Realty Corporation (SLG.N) E (05/28/2020) $62.16 Spirit Realty Capital (SRC.N) E (05/04/2020) $42.83 STORE Capital Corp (STOR.N) E (05/04/2020) $32.52 Ventas Inc (VTR.N) E (03/27/2019) $52.39 Vereit Inc (VER.N) E (08/02/2019) $36.56 Vornado Realty Trust (VNO.N) U (05/28/2020) $37.25 Welltower Inc. (WELL.N) O (03/20/2017) $68.39

Stock Ratings are subject to change. Please see latest research for each company. * Historical prices are not split adjusted.

© 2021 Morgan Stanley

20 Attachment B

Outpost Properties - Scituate Hill Target Market Demographics

State of Target Market Massachusetts Avg. Cohasset Hingham Norwell Scituate Duxbury

Total population 6,830,133 6,553 8,449 6,290 10,987 5,482 1,558 Median age 44 46 44 43 42 49 53 Percent white collar 44% 92% 93% 94% 89% 95% 91% Self employed 5% 16% 13% 14% 14% 10% 31% Private company employed 35% 65% 70% 68% 61% 64% 64% Number of households 2,601,894 2,352 3,119 2,087 3,674 2,208 673 Average ppl per household 3 3 3 3 3 2 2 Households with children 765,000 29% 892 38% 1,133 36% 919 44% 1,578 43% 657 30% 174 26% Avg household income $109,457 $197,835 $207,255 $246,885 $179,550 $137,997 $217,486 Housing units 2,882,697 2,528 3,565 2,106 3,841 2,353 775 Median year built 1968 1961 1959 N/A 1970 1962 1954 Built in 1939 or earlier 33% 35% 36% 52% 15% 29% 43% Percent with mortgage 16% N/A 74% 77% 74% 72% 63% Median home value $332,600 $798,000 $873,200 $891,000 $629,300 $570,800 $1,025,700 Median housing costs/month $1,499 1% $2,579 $2,709 1% $2,695 1% $2,732 2% $2,080 2% $2,680 1% Bachelors Degree or higher 1,243,911 18% 2,244 34% 2,258 27% 3,051 49% 3,120 28% 1,838 34% 955 61%

The demographics above demonstrate that Outpost - Scituate Hill is located within a target market where household earnings, percentage of white collar/office workers, age of housing stock, median home value, and education rates are all above the Massachusetts (and therefore, National) averages.

Outpost Properties' investment thesis is that communities of single occupancy, individually bathroomed, efficiently sized and priced office suites for remote office workers, such as those that Outpost intends to develop, will have the highest likelihood of success being located within markets that have demographics similar to those shown above.

21 Attachment C

Outpost Properties - Scituate Hill Lease Comparables Private Offices within Coworking Facilities

OUTPOST PROPERTIES

Proximity to Office Building Building Scituate Hill Approx. Size Avg. Price On site Name Location Type Class Age miles/minutes (sf) per Month Entrance Bathrooms Amenities Interior Picture/Exteior Picture Workbar Norwell Private Off B 1980 8 mi/16 min. 100 sf $650 Common Common Common

Comments:

Leasing agent on site notes that facility is operating at about 40% capacity. Price quoted above is for last remaining single office available. Unit has one window, similar to that pictured at right.

Coworking facility, part of chain of nine other locations in Massachusetts. Is located near highway, but is distant from route 3A corridor where highest earning, white collar communities are located.

Located within 101 Accord Park Drive, a collections of several other suburban office buildings.

Workstation Cohasset Private Off B 2009 .1 mi/1 min. 35 sf $750 Common Common Common

Comments:

Most direct competition with Outpost - Scituate Hill. Answering machine notes they are "delighted to say they are still open for business." Current operating capacity unkown.

Coworking facility part of mixed used development just down the street from Outpost - Scituate Hill.

Occupants of property have noted an enojoyable communal experience but also note high degree of forced contact and lack of privacy. Interior dedicated offices like that depicted at right are very small, essentially closet sized, and do not well contain noise.

Workspace@Shipyard Hingham Private Off B 1990 5.4 mi/12 mins 100sf - 120sf $800 Common Common Common

Comments:

Attractive coworking facility located at 350 Lincoln Street in Hingham, MA - a Flatley owned building directly across route 3A from the Hingham Shipyard, a popular and highly amenitized mixed used development developed and owned by Samels Company.

First person accounts from customers note that the rents are rising on renewals and community manager is difficult to do business with. Largest compllaint is poor acoustic privacy as phone calls are frequently overheard.

Workspace Pond Park Hingham Private Off C 1981 8.7 mi/20 mins 50sf - 100sf $460 Common Common Common

Comments:

Industrial/office flex building, was noted by leasing agent/owner to be very much C class. Workspace entity works with owner to help lease the spaces and takes share of revenue as a result. Noted to not be a place where you would invited guests.

Located in highly emenitized area near Derby Street Shoppes which a large open air retail complex developed and owned by WS Development with Apple Store & Kohl's as lead tenants.

eSpace Hingham Hingham Private Off B 2008 5.4 mi/12 mins 50sf - 100sf $1,525 Common Common Common

Comments:

Well located with marina views in highly amenitized mixed use development called the Hingham Shipyard, developed and owned by Samuels Co. Space is very tight and offices are small. Much opportunity for forced contact.

eSpace Scituate Scituate Private Off B 2016 6.2 mi/10 mins 120 sf $800 Common Common Common

Comments:

New development in Scituate by Greenbush MBTA train station. Coworking facility with 12 private offices, recently opened. All but one private office is leased which is being offered at $800/month.

Relatively isolated area, local town center amenities.

Regus Hingham Private Off B 2016 6.2 mi/10 mins 100 sf $462 Common Common Common

Comments:

72 private offices, most with dual occpuancy so 50 sf per person.

22 Outpost Properties - Scituate Hill Lease Comparables Commercial Office Building Leases Executed

OUTPOST PROPERTIES

Proximity to Lease Building Building Scituate Hill Price On site Address Location Type Class Age miles/minutes Size (sf) per Month Entrance Bathrooms Amenities Interior Picture/Exteior Picture 231 Chief Justice CushiCohasset Modified Gr B 1990 0 mi./0 mins 1,672 sf $3,344 Common Common Common

Comments:

EXECUTED LEASE. Building is two story office building located within same Scituate Hill commercial subdivision. Lease was signed in summer of 2020 to Ally Energy Solutions, a national industrial facilties company with a satelite office in Cohasset. Two year lease, and under modified gross structure above will come with some level of expense reimbursement that in effect increases lease rate.

Building is a B building, has only 6 parking spaces, and was not designed for today's modern day remote worker.

Similarly sized space at Outpost Scituate Hill would cost roughly the same but Outpost Scituate Hill tenant will have personal greenspaces, dedicated, proximate parking, and no forced common area amenities or bathrooms. 231 Chief Justice CushiCohasset Modified Gr B 1990 0 mi./0 minutes 867 sf $1,734 Common Common Common

Comments:

EXECUTED LEASE. Lease was signed in summer of 2020 to Shulz Law Group, a two person Boston firm wtih Cohasset offices. Two year lease, and under modified gross structure above will come with some level of expense reimbursement that in effect increases lease rate. Will be used by one person at a time.

Building is a B building, has only 6 parking spaces, and was not designed for today's modern day remote worker.

Similarly sized space at Outpost Scituate Hill would cost roughly the same at Outpost Scituate Hill tenant will have personal greenspaces, dedicated, proximate parking, and no forced common area amenities or bathrooms.

185 Lincoln Street Hingham Private Offi C 1956 4.2 mi/8 mins 988 sf $1,976 Common Common Common

Comments:

EXECUTED LEASE. Colonial building built in the 1950s, not built for today's modern day remote worker.

Well located near local amenities such as Hingham Shipyard. Lease signed in Fall of 2020 for fiver year term to Suez Environmental who provides clean drinking water to 92 million people.

188 Whiting Street Hingham Private Offi C 1952 7.2 mi/14 mins 36 sf $450 Common Common Common

Comments:

ASKING RATE. Few offices for lease in building. Colonial building built in the 1950s, not built for today's modern day remote worker.

Well located near local amenities such as Derby Street Shops and Queen Anne's Corner. Rate above is asking rate.

454 Washington StreetNorwell Private Offi C 1982 9.4 mi/19 mins 491 sf $900 Common Common Common

Comments:

ASKING RATE. Property is located on Route 53 in Norwell near to amenities. Building is old and isolated. Rent above is NNN.

115 Ripley Road Cohasset Private Offi C 1972 1.6 mi/4 mins 100 sf $483 Common Common Common

Comments:

ASKING RATE. Office has no windows, is in old building, isolated. Near town center amenities.

23 Attachment D

Location - Immediate Surroundings

Outpost - Scituate Hill is in a transit-oriented location, amongst many desirable lifestyle amenities. The site is near to the highly commercialized town centers of Hingham, Cohasset, and Scituate where high end restaurants, shopping, and service oriented shops (barbers/salons) and municipal installations (Post Office/Town Hall) can be found.

A testament to the strength of Outpost - Scituate Hill's location is the fact that the site shares property lines with properties owned by two of the largest and most demographically focused REITs in their respective sectors, AvalonBay Communities (AVB, Apartments) and Extra Space Self Storage (EXR, Self-Storage).

Distance Amenity Type Miles/Mins Train & Ferry .7 mi/2 mins to Boston

Grocery .6 mi/2 mins

Coffee .3 mi/2 mins

Coffee .3 mi/2 mins

Fitness .7 mi/2 mins

Fitness .2 mi/1 min

Household/ .1 mi/1 min Hardware

Gas Station .4 mi/1 min

Dining 1.9 mi/5 mins

Bed, Bath Beyond, Old Navy, AT&T, ULTA, Sleepy's, Talbots, Wahlburgers, Trident Raw Bar, 5.4 mi/12 mins Fresh Market

It is also important to note that Outpost - Scituate Hill will not only be located in close proximity to children's schools and religious facilities where activities take place most frequently, but also the following popular sports complexes where practices and games are held very soon after the typical work day lets out.

24 EXHIBIT B

Work From Home Tracker & 4Q Commentary

Exhibit 2: Work From Home Tracker

Return to Company Name Ticker Mkt Cap WFH Flexibility Post COVID Office Footprint Office REIT Top 10 Tenant Office Timeline New Companies Added Docusign DOCU.O 36.75 October 2021 Hybrid CXP Spotify SPOT.K 42.04 No Guidence Discretion of Employees Remain the same but will slow HSBC HSBC.K 129.44 No Guidence Hybrid Reduce by 20%, 40% in the long run Splunk Private September 2021 Preference for Remote Reduce Adobe ADBE.OQ 229.74 No Guidence Hybrid Humana HUM.N 57.99 September 2021 Hybrid Yelp YELP.K 2.83 August 2021 Hybrid Reduce Gap GPS.N 13.11 No Guidence No Guidence Reduce Raytheon Technologies RTX 129.36 No Guidence Hybrid Reduce by 25% in the long run Internet Companies Amazon AMZN.O 1,630.12 June 2021 Preference for Office Increase To 6 Major Cities CXP, VNO Google GOOG.O 1,529.48 September 2021 Hybrid Increase BXP, HPP, PGRE, VNO Facebook FB.O 878.88 May 2021 Hybrid Increase VNO Shopify SHOP.N 140.93 2021 Preference for Remote Reduce Booking Holdings Inc BKNG.O 90.79 No Guidence Hybrid Reduce Uber UBER.N 92.03 September 2021 Hybrid Reduce HPP Electronic Arts Inc EA.O 39.71 Late 2021 Hybrid Increase eBay Inc EBAY.O 41.75 No Guidence No Guidence Reduce SNAP Inc. SNAP.N 81.29 Return in Progress Hybrid Twitter TWTR.NB 42.45 Discretion of Employees Preference for Remote Remain the same CXP Pinterest PINS.N 37.12 August 2021 Hybrid Reduce by 490,000 sq ft Zillow Group Inc Z.O 27.23 September 2021 Preference for Remote Reduce Zynga ZNGA.N 11.11 Mid 2021 Hybrid Airbnb ABNB.n 82.14 Discretion of Employees Hybrid Decrease Technology & Software Companies Microsoft MSFT.O 1,830.78 September 2021 Hybrid Increase Salesforce CRM 197.66 May 2021 Preference for Remote Reduce BXP, HPP Vmware Inc VMW.N 68.04 No Guidence Preference for Remote Slack WORK.N 23.98 June 2021 Preference for Remote Box BOX 3.74 2021 Hybrid Dropbox, Inc. DBX.O 10.53 Mid 2021 Preference for Remote Reduce CISCO CSCO.O 223.66 Mid 2021 Hybrid F5 Networks, Inc. FFIV.N 10.43 Mid 2021 Hybrid Reduce OPI Media & Entertainment Netflix NFLX.N 215.62 September 2021 Preference for Office Increase HPP Viacom VIAC.N 26.16 July 2021 Hybrid Reduce SLG Banks JP Morgan JPM 491.45 July 2021 Preference for Office Reduce Bank of America BAC.N 361.28 2021 Preference for Office Reduce HIW, OPI Wells Fargo & Co. WFC.N 193.70 September 2021 Hybrid Reduce by 15%-20% CXP Citigroup C 158.38 July 2021 Preference for Office Reduce Goldman Sachs GS 123.86 July 2021 Preference for Office Increase UBS Group UBS.N 60.34 No Guidence Hybrid Reassess BNY Mellon BK 44.43 September 2021 Hybrid Reassess American Express Company AXP.N 124.50 Late 2021 Hybrid Reduce State Street STT 29.44 No Guidence Hybrid Reduce Nomura NMR 17.45 No Guidence Hybrid Reduce Barclays Capital, Inc. BARC.L 30.52 June 2021 Hybrid Reduce PGRE First Republic FRC.N 32.98 No Guidence Hybrid Remain the same PGRE Credit Suisse CS 26.63 July 2021 Hybrid SLG Jeffries JEF 7.84 September 2021 Hybrid Reduce Sun Life SLF 31.15 Mid 2021 Hybrid Reduce Deutsche Bank DB 29.10 July 2021 Hybrid Reduce by 30% Payments and Processing Visa Inc. V.N 481.09 2021 Hybrid Reduce MasterCard Inc. MA 359.82 Return in Progress Hybrid Increase Fidelity National Information Services FIS.N 91.91 No Guidence Hybrid Reduce Square Inc SQ 92.51 No Guidence Discretion of Employees Remain the same HPP Fiserv Inc. FISV.O 75.81 No Guidence Hybrid Reduce Global Payments Inc GPN.N 57.73 No Guidence Hybrid Reduce Rocket Cos Inc RKT.N 34.96 Early 2021 Hybrid Remain the same Brokers & Asset Managers BlackRock Inc. BLK.N 128.14 No Guidence Hybrid Remain the same The Blackstone Group Inc BX.N 105.31 June 2021 Preference for Office Increase HQ by 80,000 sq ft Charles Schwab Corp SCHW.N 133.74 July 2021 Hybrid Increase T. Rowe Price Group, Inc. TROW.O 42.79 September 2021 Hybrid Reduce Equitable EQH 14.41 No Guidence Hybrid Reduce VNO Consumer Discretionary LVMH LVMH.PA 312.69 Return in Progress Hybrid Source: Alpha Sense, Company Data, Morgan Stanley Research

Exhibit 3: WFH Tracker Legend WFH Policy* MS Definition PREFERENCE FOR OFFICE The company requires its employees to go back to the office for the entire week. PREFERENCE FOR REMOTE Employees have the option to work from anywhere (from home, the office, or both). FULLY REMOTE The company mandates a work from home/remote policy post-COVID. HYBRID Employees are required to come into the office a certain number of days weekly, but not for the whole week. Office Footprint Reduce Close some office space due to reduced need. Increase Increase office space to allow for social distancing. Reassess Re-evaluating which could mean moving offices to a different market, close, or increase. *We recognize that there are different definitions and that companies could change their strategy. Source: Morgan Stanley Research

25 Exhibit 4: Work Models Likely Post COVID

Source: Alpha Sense, Company Data, Morgan Stanley Research

Exhibit 5: 4Q Commentary Around Work From Home

Company Source Commentary

"In the fourth quarter of 2020, we announced a new Virtual First work model pursuant to which remote work will become the primary experience for all of our Dropbox , Inc. 4Q20 Earnings Press Release employees. As part of the Virtual First strategy, we will retain a portion of our office space to be used for team collaboration and a portion will be marketed for sublease." Chairman & CEO, David Solomon "The remote work environment has also catalyzed an increased focus on our location strategy. Last January, we expected that 40% of our employees Goldman Sachs would ultimately work from one of our strategic locations, and we will continue to evaluate the potential for that number to grow over time. We will 4Q20 Earnings Call also look toexpandinto newstrategiclocations aroundtheglobeas well as consolidateour footprint, whereappropriate, inkeepingwithour evolving business mix." CEO, David Solomon, has opined that workers will be back in their offices by the end of the year. David Solomon, CEO Goldman Sachs Solomon said, 'The big focus right now is we've got to get people vaccinated - we've got to get to the other side. I certainly would expect a lot of Goldman Sachs Bloomberg employees back in full by the end of the year. We will get through this, and I'm really hopeful that over the course of the next six months we see a real improvement.'

JPMorgan Chase CEO, Jamie Dimon Responding to a question on WFH savings post-COVID: "For real estate expenses, I'm going to say, $3 billion. o Even -- and I do think you can be much Q420 Earnings Call moreefficient thanthat, but I don't think it's likea gamechanger."

"I do believe that you lose things with people not being physically together. And so does it have to be for everyone all the time? No. And so I do think that we'll beableto usethis as anopportunity, bothtocreatesomemoreflexibility for our employees, as well as theopportunity toreducethings like Wells Fargo President & CEO, Charles Scharf travel andbecomemoreefficient withspaceover time. @ GoldmanSachs Financial Services Conference But I don't think it is -- it's not -- we'renot goingto beat an extreme. We're not going to go back to exactly the way it was before, but we're certainly not goingtoliveina worldlikethis. I think therearehugebenefitsof havingpeoplewithinclosephysical proximity. This doesn't havetobe5days a week per se. That's a made-up number." Wells Fargo 4Q20 Financial Results Presentation "~46mm sq. ft. of office real estate expected to be reduced by 15-20% by year-end 2024."

"We're a company that believes strongly in co-location for lots of different reasons — culture, the ability to train and supervise, the nature of problem solving and Bank of America Cathy Bessant, COO & CTO creativity. And despite the fact that I read articles every day about productivity being higher in a work-from-home environment, we have not found that to be true. Interview with American Banker That doesn't mean that a lot isn't getting done, but typically it's getting done over a much longer day, which is not sustainable and not good for anyone's health and welfare. So we will be a company that does return to co-location. There will be a set of people who are high risk and therefore we'll customize solutions for them. But we will try to come back to the office. No question."

Brian Thomas Moynihan, Chairman, CEO & President "When you get to working from home, we'll see how that plays out. There are a lot of our colleagues that would come back to the office tomorrow if it's safe. So Bank of America once the vaccine is in, we'll adjust to see how that all works. And yes, we'll be able to be potentially more efficient with office space. But we started with 130 @GoldmanSachs Financial Services Conference million square feet of real estate under use at the beginning of this decade. We are down to 70 million. We already have plans to go to 60 million. So this might help at the margin, but that -- we just have to keep executing the plans we had, and we're looking at all possibilities as a team under Anne Walker's leadership." I think, like most companies, we have been surprised at how fast and efficiently the company and our decision-making have worked in a completely virtual Jeffrey C. Campbell, CFO environment. While we now have the majority by count of our locations open to some number of colleagues, including our headquarters in New York, we still have American Express @ Bank of America Merrill Lynch Future of Financials Virtual very small numbers of people in our offices, probably in the low single digits around the globe on average. But the pace of decision-making, our ability as a global Conference company to work in a really coordinated fashion with people who are all over the globe, frankly, it's been better. And so we are spending a lot of time thinking about how we sustain that. We learned that nearly half of our employees want to come in only a few times per month, but also that 80% of employees want to maintain a connection to a physical space. So we are giving employees flexibility in how, when and where they work with three ways of working:

Salesforce Salesforce Blog Flex – When it’s safe to return to the office, most of our employees around the globe will work flex. This means they’ll be in the office 1-3 days per week for team collaboration, customer meetings, and presentations. Fully Remote – For employees who don’t live near an office or have roles that don’t require an office, they will work remotely full-time. Office-based – The smallest population of our workforce will work from an office location 4-5 days per week if they’re in roles that require it. We're not -- we don't need real estate like we needed before. I mean, these are new opportunities that we continue to recognize and that we see as tremendous for our future. Salesforce Mark J. Hawkins, President & CFO @ Salesforce.com Investor Day We're making a lot of decisions today as we begin to think about a post-COVID environment, including we're doing some minor lease rationalizations. We're beginning to explore what that might look like in the future. Salesforce expects more than 65% of its workforce to come into the office only one to three days a week in the future, up from 40% before the pandemic. An unspecified number of additional employees would be fully remote. Salesforce WSJ Chief People Officer Brent Hyder “We’re not going back to the way things were,” Mr. Hyder said in an interview. “I don’t believe that we’ll keep every space in every city that we’re in, including San Francisco.” Google "Looking ahead, we expect a return to a more normalized pace of ground-up construction and fit-out of office facilities, which translates into a sizable increase in Q4 2020 Alphabet Inc Earnings Call CapEx in 2021." Electronic Arts Andrew Wilson, Electronic Arts Inc. - CEO & Director, "FY '21 has been a year of outstanding growth while working through the challenges of the ongoing pandemic. Our execution continues to be strong even with our Q3 2021 Electronic Arts Inc Earnings Call employees working from home, and we expect that most will continue to do so through September." " In April 2020, we announced that most of our employees would have the flexibility to work from home through the remainder of 2020. In July 2020, we extended that flexibility indefinitely by announcing a permanent move to a distributed workforce for most employees. As we have transitioned to a remote-first workforce, we are also using this opportunity to diversify our workforce, as we are no longer bound by the geographic limits of our physical workspaces. Zillow Group 10K We expect that our offices will continue to be a place for teams to come together to enable productivity and collaboration. We are working to reimagine our physical workspaces to provide more space for collaboration and engagement when our employees do come into an office." We are also restructuring our remote work to more effectively use our time together and provide more opportunities to work asynchronously."

"We expect our new normal is 20% of our employees are office dwellers compared to 80% before COVID." We expect 30% of our employees will be hybrid, and Patrick P. Gelsinger, VMware, Inc. - CEO & Director 50% will be permanently distributed workforce. We'll have flipped the company entirely. And when we gather, it's not going to be because we're showing up in our VMware Inc VMware Inc at Goldman Sachs Technology and Internet hotels that are called office spaces, we're going to show up in our office spaces that are called collaboration centers, right? Because then we're going to meet Conference (Virtual) because we want a hug, right, because we want to celebrate, because we're doing innovation sprints, because we're doing culture building events, right, when we're together. But we are going to change the nature of our workforce entirely as we go forward. It will become more diverse, more flexible for people, better on human lives, better -- and lower cost as well. All of these, and we're seeing improved efficiency as a result." “We’ve been able to work seamlessly from home and could do this indefinitely, but we have heard from some teams that they would prefer a mix of working from home and coming into the office,” Zynga Frank Gibeau, CEO interviewed by San Francisco Business Times “We’re looking at a blend of in office with remote work,” Gibeau said. “We’re looking at a lot of scenarios.” "As we look at, for instance, with our team members and our workforce, our best expectation right now is that probably 50% to 60% of our team members are going to be in some type of a remote hybrid situation where they're working from home or remotely 2 to 3 days a week. They may be in the office 1 or 2 days a Dell Technologies, Inc. Thomas W. Sweet, Executive VP & CFO week, or they may be totally remote. @ Wells Fargo TMT Conference And so as a result of that, we're -- as you might imagine, we're reevaluating our real estate footprint pretty heavily right now in the sense of where do we need that to be, and how do we shift that over the next 24 to 36 months." Mastercard Reported by NY Post Mastercard is moving and expanding to 150 Fifth Ave. and it’s offering 77,344 square feet for sublease at its current city digs at nearby 114-116 Fifth Ave.

Deutsche Bank The Real Deal "Deutsche is in the process of relocating from its 1.6-million-square-foot office at 60 Wall Street to a 1-million-square-foot building at Time Warner Center in Columbus Circle. The new location has workspaces for 4,200 people, though it can accommodate all 4,600 current staff with flexible working arrangements."

“The office will remain our primary work location longer-term,” senior executives including Chief Operating Officer Rob Goldstein wrote in one memo sent to staff in November. “Employees will have increased flexibility to work remotely part-time, but full-time remote work will be done very selectively and with approval.” Blackrock Bloomberg BlackRock still plans to move its New York staff into 50 Hudson Yards, a new skyscraper on Manhattan’s west side, in late 2022 or early 2023, a spokesman confirmed this week. "In addition to the Corporate restructuring charge of approximately $20 million after-tax recorded in the fourth quarter of 2020 to simplify our organizational structure, we have also been developing a strategy for our workspace and redefining the role of the office, in a post COVID-19 world. Beginning first quarter of Sun Life Financial 4Q20 Earnings Press Release 2021, we will reduce and consolidate our real estate footprint across various sites in Canada and the U.S. These actions reflect a change to a more flexible and virtual work environment." The French luxury-goods giant instructed Tiffany’s corporate staff to return to the office two days a week beginning March 1, according to people familiar with the LVMH WSJ situation. “It’s critical at this time of change that we adopt a hybrid approach to onsite-remote working,” Source: Alpha Sense, Company Data, Morgan Stanley Research

26 Getting real about hybrid work | McKinsey 7/13/2021 EXHIBIT C 

McKinsey Quarterly It’s time for leaders to get real about hybrid

July 9, 2021 || ArticleArticle

By Aaron De Smet , Bonnie Dowling, Mihir Mysore , and Angelika Reich

Employers are ready to get back to signifcant in-person presence. Employees aren’t. The disconnect is deeper than most employers believe, and a spike in attrition and disengagement may be imminent.

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nce in a generation (if that), we have the opportunity to reimagine how we work. O In the 1800s, the Industrial Revolution moved many in Europe and the United States from felds to factories. In the 1940s, World War II brought women into the

workforce (if not the C-suite) at unprecedented rates. In the 1990s, the explosion of PCs

and email drove a rapid increase in productivity and the speed of decision making,

ushering in the digital age as we know it today. And in 2020, the COVID-19 pandemic drove employees out of ofces to work from home. Thanks to the development and wide distribution of COVID-19 vaccines, 2021 presents another such opportunity. The return to

https://www.mckinsey.com/business-functions/organization/our-insights/its-time-for-leaders-to-get-real-about-hybrid 27 7/13/2021 Getting real about hybrid work | McKinsey

the workplace is a chance to create a new, more efective operating model that works for companies and people navigating a world of increasing uncertainty. There is, however, one big catch: employers must confront the broadening disconnect between how they and their employees see the future.

Employees don’t know what they want and are reevaluating their relationships with work

https://www.mckinsey.com/business-functions/organization/our-insights/its-time-for-leaders-to-get-real-about-hybrid 28 7/13/2021 Getting real about hybrid work | McKinsey

Exhibit 1

https://www.mckinsey.com/business-functions/organization/our-insights/its-time-for-leaders-to-get-real-about-hybrid 29 7/13/2021 Getting real about hybrid work | McKinsey

More than three-quarters of C-suite executives recently surveyed by McKinsey report that they expected the typical “core” employee to be back in the ofce three or more days a week (Exhibit 1). While they realize that the great work-from-home experiment was surprisingly efective, they also believe that it hurt organizational culture and belonging. They are hungry for employees to be back in the ofce and for a new normal that’s somewhat more fexible but not dramatically diferent from the one we left behind.

In stark contrast, nearly three-quarters of around 5,000 employees McKinsey queried globally would like to work from home for two or more days per week, and more than half want at least three days of remote work (Exhibit 2). But their message is a bit convoluted. Many employees also report that working from home through the stress of the pandemic has driven fatigue, difculty in disconnecting from work, deterioration of their social networks, and weakening of their sense of belonging.

When employers have small-group conversations to understand such survey results in

greater detail, they discover that neither they nor large swathes of their workforces really

know what employees want. This isn’t surprising. Workers have been through a lot in the

past year. Many experienced unprecedented uncertainty and anxiety. They saw life-

expectancy rates in their communities decrease. They managed difcult personal

situations, from the loss of people close to them to their own physical- and mental-health struggles. Yet the experience wasn’t all negative. Pushed to shelter at home, many rediscovered a connection to their home and family in ways that changed them. Many

https://www.mckinsey.com/business-functions/organization/our-insights/its-time-for-leaders-to-get-real-about-hybrid 30 7/13/2021 Getting real about hybrid work | McKinsey

workers became wealthier (because of the strong global market rebound in share prices, as well as government stimulus), giving them more confdence to reafrm their paths through life—or choose new ones.

Exhibit 2

This increase in optionality, combined with a greater disconnect between personal lives and work obligations, is driving workers to reevaluate their relationships with their employers, as well as with their work. Today, this process of reevaluation is surfacing discordant views on returning to work. Tomorrow, it may well surface reduced engagement, greater unwillingness to work longer hours, and attrition.

Employers are underestimating the disconnect and failing to realize that the ‘fnish line’ is a mirage

Many employers, keen to establish some sense of normalcy quickly, are focused on

answering simple logistical questions that give them a sense of control. These questions

typically focus on the number of days that employees will be in the ofce, collaboration

tools they will use, and policies on pay levels and norms for meeting behaviors. While the

answers to them can help employees who are seeking a measure of pragmatism for what comes next, they are typically accompanied by a message that the “fnish line” is in sight and that we will soon enter a period of normalcy that will be the standard for many years to come.

https://www.mckinsey.com/business-functions/organization/our-insights/its-time-for-leaders-to-get-real-about-hybrid 31 7/13/2021 Getting real about hybrid work | McKinsey

In the enthusiasm about the return from remote working, business leaders run the risk of actually increasing the disconnect between themselves and their people. The idea that we will cross a fnish line and suddenly be done with all the hard stuf seems to exist only in the minds of senior leaders.

At best, the rosy messaging of a grand return to the ofce is falling fat. At worst, the tone deafness of the messaging may also be accelerating what’s already shaping up to be the “great attrition” of 2021 (and 2022 and even 2023). At companies across the globe,

workers are leaving at much higher rates than normal. Recent surveys found that 26 percent of workers in the United States are already preparing to look for new employment opportunities and 40 percent of workers globally are considering leaving their current

employers by the end of the year.

Recent surveys found that 40 percent of workers globally are considering leaving their current employers by the end of the year.

Communicating that some magical fnish line is just around the corner isn’t going to eliminate the disconnect that some employees feel between themselves and their employers—it will simply make it deeper. When people with that impression get back to the ofce and fnd that they aren’t fully reenergized, that they still feel tired, and that they still carry uncertainty and unresolved grief, they will disconnect emotionally even further from their organizations and leaders. The “fnish-line efect” could drive more attrition,

making things even worse for companies whose leaders are raring to go. In fact,

executives who don’t expect more waves of attrition may well be kidding themselves.

Instead of directing a rah-rah return to the ofce, leaders would be wise to focus on

deeper listening and meeting their workforces where they are today. It will be important for

leaders to acknowledge, for instance, that they don't have all the answers—as their companies transition to hybrid working models, they will still be trying to discover what the

https://www.mckinsey.com/business-functions/organization/our-insights/its-time-for-leaders-to-get-real-about-hybrid 32 7/13/2021 Getting real about hybrid work | McKinsey

right longer-term working model (the one that works for most employees) will be. It will also be important for leaders to signal that they hope to make their employees partners in designing the future of how their companies work.

Companies don’t know what comes next

Some organizations and their people are beginning to exit a grand experiment in remote working. They’ve learned many things, including how to be more productive in an operating model that was jerry rigged in a rush to meet the constant challenges and uncertainty of the COVID-19 crisis. Employers couldn’t stem the human tragedy of the pandemic, of course. But many worked with their people to fgure out ingenious ways to keep their companies productive while caring for their workforces.

But the lessons learned during the pandemic only go so far in helping leaders address the next great experiment: hybrid working. A hybrid model is more complicated than is a fully remote one. At scale, using it will be an unprecedented event in which all kinds of norms that have been accepted practice for decades will be put to the test. Leaders are a long way from knowing how it will work.

A hybrid model is more complicated than a fully remote one. At scale, using it will be an unprecedented event in which all kinds of norms will be put to the test.

The question of how many days in ofce per week are best is the most obvious one to

answer, but it isn’t the only question, and it may not even be the right one to answer frst.

There will likely be a bevy of questions to address: What work is better done in person than

virtually, and vice versa? How will meetings work best? How can infuence and experience be balanced between those who work on site and those who don’t? How can you avoid a two-tier system in which people working in the ofce are valued and rewarded more than

https://www.mckinsey.com/business-functions/organization/our-insights/its-time-for-leaders-to-get-real-about-hybrid 33 7/13/2021 Getting real about hybrid work | McKinsey

are those working more from home? Should teams physically gather in a single place while tackling a project, and if so, how often? Can leadership communication to of-site workers be as efective as it is to workers in the ofce?

Those who are no longer working remotely must accept that they are returning to the ofce without clear, solid answers to such questions. We’ll get there, eventually. But policies, practices, working norms, collaboration technologies, and more will need to change and evolve as we test and learn. After emerging from the pandemic, we will be just starting a new and difcult journey.

So what should employers do to reduce the disconnect as they consider the return to in- person work? We suggest three actions.

Be clear that fxing the next operating model will take years and is a separate efort from the near-term return to the ofce

Many employers we talk to spend far too little time acknowledging that building the muscles for a truly efective hybrid operating model could take years, not least because they are still learning what actually works in such environments. At a time when much of the workforce is experiencing signifcant discontent and overwhelming exhaustion, few

employees see a return to an ofce-centric working model as a path to improvement, and

given the success of remote working in the past year, employers will be asked to justify

their decisions to change the arrangement. However, if leaders are willing to start from

scratch, question everything, and make intentional decisions with a clear, evidence-based

rationale, the current disconnect between them and their employees could serve as the creative tension point that will power a customer-focused, employee-led operating model designed for today—and tomorrow.

https://www.mckinsey.com/business-functions/organization/our-insights/its-time-for-leaders-to-get-real-about-hybrid 34 7/13/2021 Getting real about hybrid work | McKinsey

Consider all the research showing that building new relationships is better done in person. During the COVID-19 pandemic, 39 percent of employees struggled to maintain a strong connection with colleagues as informal social networks weakened and people leaned in heavily to the people and groups with whom they most identifed.[ 1 ] Anchored in facts such as that, leaders have a concrete reason for why some amount of face time is critical. That’s also one of the reasons a company should invest in fguring out how hybrid social networks work best, along with other ways to help employees establish high-quality relationships, strengthen connections, and bolster trust. By joining employees’ search for why, leaders can begin to assemble the building blocks of a shared and nimble future- oriented culture.

Don’t just repeat what the workforce says explicitly, empathize with what they are trying to convey implicitly

Many organizations today are playing back select results of employee surveys to their workforces, partly to justify their choices about a physical return to the ofce. This is fne, but it fails to signal that the organization understands and appreciates the altered postpandemic relationship between employees and employers. Meeting employees where they are means signaling awareness that there is a deeper undercurrent of beliefs that will take time to surface and understand, accompanied by a clear commitment that the

organization will continue to listen for, process, and act on those signals.

Doing so will mean complementing traditional listening mechanisms (such as pulse

checks) with true listening, as well as intentionally creating forums and space to enable

sharing. Top leaders must lead by example in showing that feedback and expressions of

vulnerability are welcomed. Listening tours, freside chats, ask-me-anything sessions, reverse town halls, and the sharing of personal stories can help build a safe environment

for employees to share as well.

https://www.mckinsey.com/business-functions/organization/our-insights/its-time-for-leaders-to-get-real-about-hybrid 35 7/13/2021 Getting real about hybrid work | McKinsey

Team leaders must also follow through with sharing, listening, and hearing the needs of their team members. Without true partnership at that level, top leaders’ talk about partnering with employees is just that—talk.

Done right, listening at the individual level is a kind of early intervention that may head of deeper morale issues down the line. As companies move from the chaos of the pandemic to the uncertainty of the return to the ofce, listening to employees will continue to be more critical than ever.

Be sincere about experimenting and learning from the outcomes of your experiments

Without a road map or playbook for what the next normal should look like, people must collectively adopt a test-and-learn mindset. Organizations can try out diferent working models and norms, physical-space layouts, and tools to create a future that balances individual productivity with innovation-driving creativity, personal fexibility with team collaboration, and the ofce with the home. That means experimenting and piloting as individuals, teams, business units, ofces, and organizations.

For example, the design of ofce space plays a key role in positive collaboration and

connection, but traditional ofces typically dedicate more than two-thirds of their space to

individual, heads-down workspaces, such as desks and cubicles. What new designs and

technologies could be piloted to provide fexibility and collaboration? One top tech

company is developing an array of sensors and movable walls to allow for ongoing and

real-time adjustments based on employee needs and patterns of work. A global fnancial-

services leader is trying out a fully open foor plan with “hot desks” where management will share space with workers.

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Similarly, the norms surrounding meetings are ripe for refreshing. Who needs to attend which meetings, for how long, and in what format? How can meetings be redesigned in a way that maximizes efciency, accelerates efective decision making, and builds connectivity and social cohesion? The answers aren’t clear yet, but companies will fgure them out by trial and error—by testing and learning.

Letting experiments play out will be a challenge for many leaders. As we mentioned previously, the uncertainty of the COVID-19 pandemic froze some leaders as it took away their sense of control. Embracing a test-and-learn culture will entail a real mindset shift for some leaders. They will need to get comfortable with the fact that a clear solution may not be immediately apparent—the big answers may not emerge for years. And they will have to help their employees adapt by providing a set of guiding principles and criteria for

evaluating solutions and ideas. (For more on what leaders can do, see “Return as a

muscle: How lessons from COVID-19 can shape a robust operating model for hybrid and beyond.”)

Embracing a test-and-learn culture will entail a real mindset shift for some leaders. The big answers may not emerge for years.

Denying the disconnect is no strategy at all

It would be nice if employees were jumping for joy at the prospect of a full return to the

ofce. And it would be nice if the future turns out to be as glorious and stable as we

sometimes imagine the past to have been. But those are fantasies built on nostalgia. They are anything but a solid foundation for building a future-ready company.

https://www.mckinsey.com/business-functions/organization/our-insights/its-time-for-leaders-to-get-real-about-hybrid 37 7/13/2021 Getting real about hybrid work | McKinsey

Right now, a lot of wishful thinking is guiding the return from remote working. With notable and heartbreaking exceptions, many leaders were insulated from the COVID-19 pandemic. They think it’s both easy and desirable for companies to move on quickly. But their people aren’t begging to disagree. They are voting with their feet.

If leaders don’t accept the fact that they don’t know the shape of the future of hybrid working, their talent will keep walking out the door. But leaders can make a choice. They can continue to believe that they will deliver in the future because they have always delivered in the past. Or they can embrace this singular opportunity for change and work with their people—closely and transparently, with curiosity, respect, and a willingness to learn together instead of mandating—to discover a new and better way to work. 1. Jennifer Moss, “Beyond burned out,” Harvard Business Review, February 10, 2021, hbr.org.

ABOUT THE AUTHOR(S)

Aaron De Smet is a senior partner in McKinsey’s New Jersey ofce, Bonnie Dowling is an associate partner in the Denver ofce, Mihir Mysore is a partner in the Houston ofce, and Angelika Reich is a partner in the Vienna ofce.

This article was edited by Rick Tetzeli, an executive editor in the New York ofce.

Talk to us

https://www.mckinsey.com/business-functions/organization/our-insights/its-time-for-leaders-to-get-real-about-hybrid 38 Local office demand may fall up to 20%, Mass. future-of-work report says - Boston Business Journal 7/13/2021 EXHIBIT D

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From the Boston Business Journal: https://www.bizjournals.com/boston/news/2021/07/13/local- office-demand-may-fall-up-to-20-state-repo.html

Local ofce demand may fall up to 20%, state report says

Jul 13, 2021, 9:30am EDT

Local demand for office real estate is expected to fall by as much as 20% by 2030 if work-from-home trends continue, according to an analysis by McKinsey & Co. commissioned by the Baker administration.

Gov. Charlie Baker tasked McKinsey this spring with producing a wide-

ranging report about the future of GARY HIGGINS work in Massachusetts, with an eye on A new McKinsey report, using the findings to develop policy commissioned by the Baker administration, outlines the around keeping the state economy possible repercussions of a long- strong in the wake of the Covid-19 term shift to remote work in pandemic. Massachusetts.

The report, published Tuesday, offers projections on some of the trends and concerns cited by local executives about changes in the Massachusetts economy post-pandemic.

One of the report’s primary conclusions is that remote work could shift the center of gravity away from urban cores and to more residential areas. About a third of Massachusetts workers could work remotely one to three days a week, according to McKinsey’s

https://www.bizjournals.com/boston/news/2021/07/13/local-office-demand-may-fall-up-to-20-state-repo.html?ana=e_bost_bn_breakingnews_breakingn… 39 7/13/2021 Local office demand may fall up to 20%, Mass. future-of-work report says - Boston Business Journal modeling. Commuter rail ridership could plummet by 15% to 50% long-term, it said.

Boston’s commercial real estate market would be hardest-hit by a permanent shift towards remote work, the report said. Class B and Class C office buildings would see the most vacancies, while Class A space may have higher occupancy rates, but possibly a reduction in rent per square foot, it said.

It’s not only office demand that could suffer, according to the report: A decline in business travel because of Covid-19 may reduce the estimated daily visitors to Boston by 30,000 per day. That would compound the loss of revenue suffered by downtown retailers and restaurants as a result of fewer people working in offices everyday compared with pre-pandemic. About 5,000 retail jobs could be pushed out of the Boston area, the report projected.

The shifts in working could bring more business to downtown areas in cities and towns outside of the Boston urban core, but it will also require wholesale changes in the business models of child care providers, including an increased need for flexibility in scheduling, per the report. That will be a tough haul, considering Boston alone needs 3,000 to 4,000 more child care workers to meet need, the report said.

Considering all of these changes, the state will need to undertake “one of the largest reskilling efforts” in its history, according to the report. The health care sector, in particular, could see substantial growth: up to 235,000 more jobs by 2030, the report said.

“If done correctly, the effort could lead to a vibrant Massachusetts economy with new job creation absorbing the workforce released by automation trends,” the report said.

Still, women and racial and ethnic minorities in Massachusetts will be hurt more by some of these trends than their peers, it said. Without focused action, the inequities that existed before the pandemic will only deepen, the report concluded.

Greg Ryan Senior Reporter Boston Business Journal

https://www.bizjournals.com/boston/news/2021/07/13/local-office-demand-may-fall-up-to-20-state-repo.html?ana=e_bost_bn_breakingnews_breakingn… 40 undefined 7/19/2021 EXHIBIT E

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From the Boston Business Journal: https://www.bizjournals.com/boston/news/2021/07/16/amesbury- mayors-open-letter-to-boston.html

A suburban mayor's open letter to Boston commuters

Jul 16, 2021, 1:57pm EDT

Dear Boston Commuter,

As you read this, maybe you’re sitting in the backseat of your carpool stuck in traffic on I-93 or on the train pulling your bag onto your lap as more of your fellow commuters squish into the train car headed towards the city. Hello again, gridlock and delays; we

did not miss you. CAITLIN THAYER Mayor of Amesbury Kassandra Over the course of 2020, you Gove likely got a taste of what working from home could look like. You might have spruced up your home office into a space where you could be productive. Maybe you got to be present for more family milestones. Your workday wasn’t extended by the (unpaid) time to commute home.

While 2020 was one of the most difficult years of our lives, many people experienced a new and more sustainable way of living and working. Now, as many companies opt to remain remote, municipalities have an obligation to make their communities more welcoming and enticing for hybrid workers over the long term.

https://www.bizjournals.com/boston/news/2021/07/16/amesbury-mayors-open-letter-to-boston.html?s=print 41 7/19/2021 undefined Here is what we’re doing in Amesbury — and we welcome you to join us.

Thanks to a MassDOT Shared Streets & Spaces grant, we’ve upgraded one of our central gathering places to include public WiFi, a solar-powered charging station, and a shade sail. We’ve added eco-friendly playground equipment and new bicycle corrals. We’re creating a space where someone can bring their child to play while also connecting to WiFi to check email. Where someone can get a change of scenery while staying productive and participating in their conference call. Where someone can bicycle downtown, grab a coffee and sit comfortably outdoors while working on an upcoming presentation.

The traditional model of working in an office is gone, and a new model of working anywhere and everywhere is here. But it’s not enough to have a great local coffee shop (of which Amesbury has many). We have to go above and beyond to create spaces where people can gather, collaborate and yes, even work.

When I talk with residents, many of whom used to commute to Boston, they are excited to spend more time here and with their families.

Having more people working remotely is good for them and it’s very good for our businesses. Imagine how many people will replace getting their morning commuter coffee at the train station and instead will visit their local coffee shop. Rather than an evening commute, they dine out. When people run out at lunchtime to do errands, they’re supporting local businesses in their community. It’s a win-win for everyone — companies included, who are saving money on office space and infrastructure!

Come see us in Amesbury sometime and say hello. We truly embody what it means to live, work and play. From our beautiful open spaces to our revitalized and vibrant downtown, Amesbury has it all. Including an outdoor office.

Hope to see you in Amesbury soon.

Kassandra Gove

Amesbury Mayor https://www.bizjournals.com/boston/news/2021/07/16/amesbury-mayors-open-letter-to-boston.html?s=print 42 \\vhb\gbl\proj\Wat-LD\15103.00 Scituate Hill\cad\ld\Planmisc\1510300_Lot Coverage.dwg vhb.com EXHIBIT F LEGEND

PAVING

OPEN SPACE (VEGETATION)

OPEN SPACE (STONE SLOPE) King Street WOODED AREA TO BE CLEARED 101 Walnut Street PO Box 9151 OPEN SPACE (WOODED AREA TO REMAIN) Watertown, MA 02471 617.924.1770

Scituate Hill Scituate Building Heights Summary Building Existing Finished Floor Structure Building Number Elevation Elevation (FFE) Height Height 1 ±87' 85.84' 22.25' ±21.09'

2 ±97' 89.35' 22.25' ±14.60'

BLDG 3 ±104' 91.05' 22.25' ±9.30' #8 4 ±110' 95.01' 22.25' ±7.26' SALES AND 5 ±105' 108.11' 22.25' ±25.36' CONFERENCE CENTER 6 ±93' 102.18' 13.42' ±22.60'

7 ±94' 100.74' 22.25' ±28.99

8 ±87' 106.00' 13.42' ±32.42' BLDG 9 ±122' 107.54' 22.25' ±7.79' #7 10 ±132' 106.40' 22.25' ±-3.35'

11 ±129' 103.16' 22.25' ±-3.59'

VAN 12 ±120' 101.57' 22.25' ±3.82'

13 ±85' 94.04' 22.25' ±31.29'

14 ±88' 94.73' 22.25' ±28.98'

15 ±101' 97.33' 13.42' ±9.75'

BLDG 16 ±130' 113.98' 22.25' ±6.23' #6 17 ±135' 116.39' 22.25' ±3.64'

18 ±134' 117.24' 22.25' ±5.49'

BLDG 19 ±131' 118.76' 22.25' ±10.01' #5 PAVILION ±137' ±126.00' 14.17' ±3.17' SALES AND CONFERENCE ±84' 102.77' 16.71' ±35.48' CENTER BLDG BLDG #9 BLDG #13 #1 Zoning Compliance Summary

BLDG BLDG Category Proposed Percentage #19 Calculation #4 BLDG #14 TOTAL LOT AREA ±349,404 SF N/A 100 % BLDG LOT COVERAGE ±122,208 SF 121,788 SF / 349,404 SF 35 % #2 PAVEMENT COVER ±71,194 SF 71,194 SF / 349,404 SF ±21 %

BLDG OPEN SPACE (GRASS) ±209,155 SF 209,155 SF / 349,404 SF 60 % #3 OPEN SPACE (GRAVEL) ±18,043 SF 18,043 SF / 349,404 SF ±5 %

OPEN SPACE (TOTAL) ±227,196 SF 227,196 SF / 349,404 SF 65 % BLDG #15 BLDG EXISTING TREE COVERAGE ±115,222 SF N/A N/A #10 WOODED AREA TO BE REMOVED ±59,607 SF 59,607 SF / 115,222 SF ±52 % (% OF WOODED AREA) WOODED AREA TO BE REMOVED BLDG ±59,607 SF 59,607 SF / 349,404 SF ±17 % (% OF TOTAL LOT AREA) #18 BLDG #11 TYPICAL BUILDING HEIGHT ELEVATION BLDG BLDG #17 #12 Scituate Hill

Cohasset, Massachusetts

No. Revision Date Appvd.

BLDG #16 BUILDING HEIGHT

PAVILION STRUCTURE HEIGHT

Designed by Checked by

Issued for Date

FINISHED FLOOR ELEVATION (FFE) Local Permitting July 12, 2021

Not Approved for Construction Drawing Title Zoning Calculations Figure

EXISTING GRADE

NOTES:

1. LOT COVERAGE INCLUDES ANY MAN-MADE MATERIALS THAT ARE IMPERVIOUS TO WATER. 2. THE EXISTING ELEVATION USED TO CALCULATE BUILDING HEIGHT WAS THE LOWEST POINT OF THE

EXISTING GRADE WITHIN THE FOOTPRINT OF THE PROPOSED BUILDING. Drawing Number 3. STRUCTURE HEIGHT WAS MEASURED AS THE VERTICAL DISTANCE FROM FFE TO THE MIDPOINT OF THE HIGHEST SLOPED ROOF (AS SHOWN IN THE DIAGRAM ABOVE). THE MIDPOINT OF THE SLOPED ROOF WAS DEFINED AS HALF THE DISTANCE FROM THE PLATE LINE TO THE RIDGELINE MEASURED OVER THE OUTER SURFACE OF THE ROOF BOARDING. 4. BUILDING HEIGHT WAS CALCULATED BY ADDING STRUCTURE HEIGHT AND FFE AND SUBTRACTING THE EXISTING ELEVATION. C1.01 Sheet of 1 1

0 20 40 Feet80 Project Number

Saved Wednesday, July 14, 2021 6:09:31 PM CNOWAK Plotted Saved Wednesday, July 14, 2021 6:09:31 PMCNOWAK Wednesday, July 14, 2021 6:13:54 PMChris Merrikin 15103.00

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