April 22, 2014

1. 2014 Spring Education Series April 22, 2014

2. Welcome on behalf of the GovConnects Advisory Council

3. “Physical Space”How to maximize success& office space of the future Moderator: Dismas N. Locaria, Venable, LLP Panelists: Robert Manekin, Colliers International Dave Jacques, Wilhelm Commercial Builders James Wallace, Gensler Gregory R. Prossner, Corporate Office Properties Trust

4. Dismas N. Locaria – Partner, Venable LLP Dismas (Diz) Locaria is a member of the firm's Government Contracts Group. Mr. Locaria's practice focuses on assisting government contractors in all aspects of working with the federal government, as well as representing and counseling clients concerning the peculiarities of the Homeland Security Act’s SAFETY Act. Mr. Locaria has represented clients before various federal agencies, including the Department of Defense, General Services Administration, Department of Homeland Security, Small Business Administration, Environmental Protection Agency, and others. Mr. Locaria has developed several specialty areas, including representing clients in suspension and debarment proceedings, as well as performing internal investigations, which has included assistance and representation for such clients with disclosures to federal officials regarding the findings of such investigations and working with the client to determine and implement compliance enhancements and improvements. Mr. Locaria also has extensive experience in client counseling, including assisting clients with the nuances of becoming government contractors and implementing appropriate systems and methods to achieve and maintain regulatory and contractual compliance. Mr. Locaria is also well versed in assisting clients with GSA Federal Supply Schedule matters, in particular advising clients on how best to structure proposals to avoid price reduction clause (PRC) issues, and addressing PRC, Trade Agreements Act and other compliance matters post-award.

5. Robert “Bob” Manekin – Managing Director & Principal, Colliers International Bob has worked in the commercial real estate industy for over 36 years. This has included 7 years in property management, 8 years in development, and the balance in brokerage. Having worked in a variety of disciplines, Bob has a wonderful overview of the industry and the ability to better identify client needs and address client concerns. Bob received a bachelor of Arts in Political Science from the University of North Carolina at Chapel Hill. Bob is a member of the Society of Industrial and Office Realtor’s.

6. David Jaques - Vice President of Estimating, Wilhelm Commercial David is an expert in constructing secure work environments and SCIFs.  David has been in the construction industry for over 10 years with experience in residential and commercial construction.  Mr. Jaques has worked directly with Fortune 500 businesses, Government Agencies, leading cyber companies, and small businesses alike in designing, planning, and executing the construction of over 70 SCIFs.  David often applies innovative and creative problem solving to complex construction projects.  David has a unique perspective and cooperative work style that is a true asset to completing projects on time and on budget.  Mr. Jaques was recently awarded the Association of Builders and Contractors Baltimore Young Leader of the Year. 

7. James Wallace – Principal, Gensler As co-director of Gensler's Baltimore office, James Wallace has been responsible for the successful management and direction of a variety of project types including base building and interior renovations, educational facilities, corporate offices, hospitality, law firms, secured facilities, and retail stores. A registered architect with more than 32 years of architectural experience, James holds a masters of business administration from the University of St. Thomas and a bachelor of architecture from Louisiana State University. He is a member of the American Institute of Architects and a LEED accredited professional.

8. Gregory R. Prossner – Vice President, Asset Management/Leasing, Corporate Office Properties Trust Greg is responsible for the financial performance of a portfolio of COPT buildings located within Maryland, the District of Columbia, and Virginia. His portfolio responsibilities total 40 buildings, approximately three million square feet, including the many defense contractors in support of the U.S. Government's knowledge based activities, and the Federal Contractors supporting the U.S. NAVY’s mission located within his Portfolio. Greg has 15 years of real estate experience. Prior to working at COPT, Greg was a Vice President with Jones Lang LaSalle, and Spaulding and Slye. At Jones Lang LaSalle he worked primarily on Tenant representation assignments for Government Contractors, and was both a Landlord and Tenant representative broker for Spaulding and Slye. Greg’s experience covers office and industrial development, leasing, and property and asset management. Greg earned a Bachelor of Arts degree in Economics from Hobart College.

9. Agenda • Robert Manekin, Colliers International • Top 10 considerations for office space, generally • David Jaques, Wilhelm Commercial • Top 10 considerations for SCIF facilities • James Wallace, Gensler • The workplace of the future • Greg Prossner, COPT • Trends in office space and office parks

10. Robert Manekin, Colliers International

11. “ “The only people that like office space are the people who develop, lease and manage it. Tenant companies hate office space. And do you know why? The answer is simple.” “Office space is an expense. It is a cost. It is overhead. It does not make the company any money. Simply stated, it’s a pain in the ass.” Phil D’Oria National Director of Real Estate CIGNA

12. Purpose of the Presentation: Put real estate in the right business context Give you enough information to avoid doing something stupid Raise you to the level of conscious incompetence – knowing what you do not know Provide my Top 10 considerations

13. Overview of the Office Leasing (“Circle of Life”): • Home Office (as opposed to the Garage) • Shared Office Space • Sublet space or cohabitating • Direct lease • Key Points to Remember: • Be cautious • Maintain flexibility via short leases • Don’t carry excess space to “accommodate growth”

14. Top 10 List of Considerations #1 - Whatever you may think, in considering office space Remember that it is not about the real estate. It is about your workplace strategy, headcount, growth, collaboration, location, overhead #2 - Look at the big picture. What are you really trying to accomplish? The business strategy always comes first. Real estate is only a means to help achieve that strategy

15. Top 10 List of Considerations (cont’d) #3 - You are not as smart about office leasing as you think you are. (Malcolm Gladwell’s 10,000 hours) Leasing office space is not like buying a big screen TV #4 - Educate yourself enough to know what kind of help you need, and then get that help. Be a smart consumer. Better yet, be a smart client

16. Top 10 List of Considerations (cont’d) #5 - The Landlord or the Landlord’s listing agent is neither your friend nor your enemy. They are the seller and you are the buyer. Caveat Emptor applies #6 - Always strive for flexibility. Avoid long lease terms. Think about needs for expansion – as well as contraction. What goes up can also go down. The more the Landlord spends to build out the space your business needs, the longer the lease term and the less flexible the lease

17. Top 10 List of Considerations (cont’d) #7 - Know how the unique aspects of your business impact on your office space – SCIFs, secured comms, etc. Be able to communicate them. Know how they impact on the office leasing process #8 - Hire and use a lawyer that specializes in commercial office leases. Do not rely on a general practitioner. The specialist’s hourly rate may be higher, but it will take less time and you will get a better result. If you use a real estate broker to represent you, remember that he or she is not your lawyer. Don’t cheap out by asking the broker to “see if the lease is okay.”

18. Top 10 List of Considerations (cont’d) #9 - Avoid cocktail conversation about leases, lease rates, and deals. The person who boasts of a great rate may have a longer term lease with less improvements and actually nothing to boast about. Everyone’s car costs less, and everyone’s house is worth more, at a cocktail party #10 - Remember Rule #1. It is not about the real estate. It is about workplace strategy, headcount, projected growth, overhead, location, etc.

19. Dave Jaques, Wilhelm Commercial Builders

20. Top 10 Considerations for SCIF Facilities SCIF Facilities should be designed and constructed using experienced SCIF businesses that know the details of putting together a space that will be approved by the accrediting agency and follows the ICD/ICS 705 Obtain budgetary pricing prior to entering into a leasing agreement Make sure to provide ample construction time to your schedule. SCIF construction can take a while especially when you need to get your accrediting agency to inspect the space several times during the process General Contractors that hold facility clearances can help provide escorts and know the processes for completing construction projects for the most secure projects in the marketplace

21. Top 10 Considerations for SCIF Facilities (cont’d) • Make sure that you know the exact requirements for your spaces for your particular contract and have approval of the design from the accrediting agency prior to proceeding with construction • Culture and Hospitality are critical attributes for employee engagement and shouldn’t be forgotten about just because you are constructing a SCIF. • Constant monitoring of the security of your SCIF is available in the market. Take Advantage of this! • There are questions that come up during the construction process. Make sure someone from all members of the team are engaged and can respond to these questions in a timely manner to keep the project on pace.

22. Top 10 Considerations for SCIF Facilities (cont’d) • Don’t start construction without your Data and Furniture vendors on board • Power and Cooling are the most important aspects of a working SCIF

23. James Wallace, Gensler