ADDITIONAL INFORMATION TO MEMBERS OF THE AD HOC RELOCATION SUBCOMMITTEE FOR THE MEETING OF: TUESDAY, MAY 26, 2015 AT 10:00 A.M.

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1 ADDITIONAL INFORMATION TO MEMBERS OF THE AD HOC RELOCATION SUBCOMMITTEE FOR THE MEETING OF: TUESDAY, MAY 26, 2015 AT 10:00 A.M. AHRS CAR Relocation At its last meeting, the Ad Hoc Relocation Subcommittee directed Staff to evaluate additional urban and suburban locations and prepare an analysis of potential office space alternatives. The analysis is attached. (Docket #AHRS15.05, Exhibit #1) Attachment Boston, Massachusetts May 21, 2015 NATALIE HUBLEY Acting President

2 PAGE 1 OF 4 M E M O R A N D U M TO: Members of the CAR Ad Hoc Relocation Subcommittee FROM: Natalie Hubley Acting President DATE: May 21, 2015 RE: At its May 12, 2015 meeting, the Subcommittee directed Staff to prepare a comparative analysis of potential office space alternatives. The purpose of the analysis is to allow the Subcommittee to consider the economics of various alternatives in addition to the 101 Arch Street proposal. To that end, Staff toured several Boston office locations. The attached exhibits provide a description of the locations, a quantitative summary of anticipated rent costs, and Staff s observations relative to suitability. Although Staff has not toured suburban locations, they are added for comparison based on market information provided by CAR s broker. Also included to assist the Subcommittee in its consideration of the 101 Arch Street proposal is a description of potential economic savings not otherwise identified in the analysis which result from synergies gained through shared office space with industryfunded organizations. Staff will review its analysis at the May 26, 2015 meeting. More current information that may become available in the interim will be presented at the meeting.

3 PAGE 2 OF 4 Tour Summary - May 13, 2015 ADDRESS & BUILDING PHOTO BUILDING OWNER SIZE SPACE TOURED RENTAL RATE (Year 1 rates, increasing by $1.00 per year) TRANSPORTATION PARKING AMENITIES ISP Providers COMMENTS 100 Cambridge Street Intercontinental LP 600,000 SF 22 floors Floor 13: 14,259 SF $ $55.00 per SF 3-minute walk from Government Center and 10-minute walk from North Station. 1 / 2,500 SF Dunkin Donuts, daycare, retail banking, 24/7 security. Comcast & Verizon. - Space currently occupied by Partners Healthcare. - State agency occupied bottom half of the building. 50 Milk Street Ponte Gadea 250,000 SF 21 floors Floor 12: 16,105 SF $48.00 per SF 2-blocks from MBTA Orange and Blue lines. North Station approx. 12-minute walk, South Station approx. 10-minutes. 1 / 3,500 SF Conference center and gym under construction, exclusive for tenants. 24/7 security. AT&T, LightTower. - 16,000 SF full floor. - Former Brown Brother headquarters. - Space toured currently wide open. 101 Arch Street Clarion 375,000 SF 21 floors Floor 8: 18,394 SF Floor 4: 29,000 SF $46.50 per SF MBTA Green, Red, and Orange lines accessible in Building lower level. 1 / 10,000 SF Conference center, sit down dining and sandwich shops, sundry shop, adjacent to new development with Roche Bros, etc., 24/7 security. Cogent - Current tenants' leases expire 2/ Potential for shared facilities with AIB, IFB, WCRIB. 160 Federal Street Beacon Capital 350,000 SF 24 floors Floor 5: 24,000 SF $46.00 per SF 2-blocks from South Station. 1 / 3,500 SF Retail banking, 24/7 security, Freshii sandwich shop, sundry shop, 24/7 security. Cogent - Floor 5 available but under construction, toured floor 10 as example space. - Building sold in April 2015, new owner considering lobby and amenity upgrades. 100 High Street CBRE Global 550,000 SF 28 floors Floor 5: 19,000 SF $52.00 per SF 2-blocks from South Station. 1 / 4,000 SF New conference center, tenant lounge, and roof deck under construction on 9th floor. Comcast, Cogent, Verizon, XO Communications. - Will demise floor to tenant size needs. - Narrow passage in middle of space area. - Space is currently in a "shell condition". 10 Post Office Square Synergy Investments 400,000 SF 13 floors Floor 5: 18,100 SF $46.00 per SF Central location on PO Square, all MBTA lines within 5- minute walk. No Parking onsite. No on-site security. New owner plans to upgrade lobby and reposition 1st floor spaces for more onsite retail. - 5th floor can be demised for lower square footage. Comcast & Verizon. - Older building so many columns in the space. - New owner considering tenant exclusive conference space, gym, bike room, etc.

4 PAGE 3 OF 4 Ad Hoc Relocation Subcommittee - May 26, 2015 Location Size (SF) Rent Cost Comments 100 Cambridge Street 14,260 Avg Rate/SF: $56.50 Pros: - potentially optimal square footage 10 years: $8,056,900 - abundant visitor parking available vs 101 Arch: ($1,327,100) Cons: - potential data center space dependent on fit plan - competitive ISP providers not currently servicing this location - class A space; high rental rate 50 Milk Street 16,100 Avg Rate/SF: $52.50 Pros: - reasonable for data center construction 10 years: $8,452,500 - competitive ISP providers currently servicing this location vs 101 Arch: ($931,500) - building owner invested in long term tenants; potential to negotiate more favorable rental rate - favorable floor plan allows for optimal buildout Cons: - may be more space than needed 101 Arch Street 18,400 Avg Rate/SF: $51.00 Pros: - reasonable for data center construction 10 years: $9,384,000 - competitive ISP providers currently servicing this location vs 101 Arch: $0 - potential synergies of proximity to ind-funded orgs - current tenant lease expiration consistent w/ CAR needs Cons: - more space than CAR needs - current proposal indicates "landlord's choice" of CAR location 160 Federal Street 15,000 Avg Rate/SF: $50.50 Pros: - reasonable for data center construction 10 years: $7,575,000 - competitive ISP providers currently servicing this location vs 101 Arch: ($1,809,000) - landlord willing to demise to CAR needs Cons: - limited information available at this time re potential buildout - planned lobby renovations may drive expense assessment up 100 High Street 15,000 Avg Rate/SF: $52.50 Pros: - reasonable for data center construction 10 years: $7,875,000 - competitive ISP providers currently servicing this location vs 101 Arch: ($1,509,000) - landlord willing to demise to CAR needs Cons: - awkward floor design; narrow passage in middle of space - planned renovations may drive expense assessment up 10 Post Office Square 16,000 Avg Rate/SF: $50.50 Pros: - none 10 years: $8,080,000 vs 101 Arch: ($1,304,000) Cons: - old building w/ excessive columns make data center construct difficult, increasing square footage requirements - lacks building security 2 Center Plaza 15,000 Avg Rate/SF: $49.50 Pros: - reasonable for data center construction 10 years: $7,425,000 - competitive ISP providers currently servicing this location vs 101 Arch: ($1,959,000) - ideal conference room space - building owner willing to subdivide to CAR needs - current tenant lease expiration consistent w/ CAR needs - favorable floor plan allows for optimal buildout - most favorable rental rate of Boston locations identified - potential synergies of proximity to ind-funded orgs Cons: - ground floor level - unsecured building during business hours North Suburban 15,000 Avg Rate/SF: $46.50 Pros: - favorable rental rate as compared to urban locations 10 years: $6,975,000 vs 101 Arch: ($2,409,000) Cons: - lacks proximity to regulatory bodies including DOI and AG

5 PAGE 4 OF 4 Ad Hoc Relocation Subcommittee - May 26, 2015 West Suburban 15,000 Avg Rate/SF: $38.50 Pros: - favorable rental rate as compared to urban locations 10 years: $5,775,000 vs 101 Arch: ($3,609,000) Cons: - lacks proximity to regulatory bodies including DOI and AG South Suburban 15,000 Avg Rate/SF: $27.50 Pros: - favorable rental rate as compared to urban locations 10 years: $4,125,000 vs 101 Arch: ($5,259,000) Cons: - lacks proximity to regulatory bodies including DOI and AG Preliminary Review of Economic Impact of Synergies of Shared Office Space Description of Shared Space Individual Shared 10 Yr Savings Conference Space CAR SF AIB SF ,800 1,350 $91,800 $68,850 $229,500 Reception CAR SF 400 AIB SF $40,800 $20,400 $204,000 Mail Room CAR SF 400 AIB SF $40,800 $20,400 $204,000 Total Total SF 3,400 2,150 1,250 $173,400 $109,650 $637,500