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29

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28

| DTZ

KEY PERFORMANCE INDICATORS

Some examples include:

• Alignment with long term strategy and corporate

goals.

• Achieve outcome that positions Akamai as a

leader in its field and a place where people are

excited to go to work.

• Deliver an innovative solution to the current

challenge of location / space needs.

FEATURES & BENEFITS

Following is a sample comparison of the features and benefits of the two cities.

CITY A

CITY B

Access to talent

4

4

Opportunities for growth / consolidation

1

5

Amenities

5

3

Transportation

4

4

Access to live / work / play

5

5

Tax incentives

1

3

Total occupancy cost

1

3

Total

21

27

SAMPLE

COMPARISON

This section illustrates the research done to show that:

• City B provides a much greater opportunity for growth and consolidation for Akamai,

thus diminishing the risk of impeding the business goals because of space constraints.

• City B provides the same level of access to talent that City A does. Recruiting and

retaining talent is one of the primary goals of the company.

• The total occupancy cost in City B is significantly below that of City A. This feature will

align with Akamai’s strategy of operational excellence and fiscal responsibility.

Additional back-up documentation would be included in a final package detailing this approach.

Scale of 1-5, with 5 being the best

RISK OF REMAINING IN CITY A

As seen from the market overview (available in the link above), City A has limited

options for Akamai because it would entail growing into more buildings and attempting

to find “pockets” of space to lease as you grow. The two options for large developments

that could potentially accommodate the 1.5 MSF that Akamai will need by 2025, are

not currently at a stage of permitting that would be in line with Akamai’s timing for a

relocation.

OverallO ceMarketStatistics Q22015Summary $46.48PSF $55.55 $22.62 Boston Cambridge Suburbs YearOver Year QuarterOver QuarterChange Current Asking Location 14.7% 8.1% 21.9% Boston Cambridge Suburbs YearOver Year QuarterOver QuarterChange Current Availability Location 144,731SF 510,717SF 861,115SF Boston Cambridge Suburbs YearOver Year Current NetAbsorption Location TheStateofEconomy by theNumbers 2% 1% 3% 4% 5% 6% 7% 2014201520142015 2014201520142015 USUnemployment MAUnemployment USEmployment MAEmployment %Unemployment Quarter 2 Quarter 2 Employment (Millions) 30 60 90 120 150 6.3% 5.5% 5.8% 4.6% 3.34 3.47 138.6 141.6 EconomicOverview Last year, the June jobs report heralded “early fireworks” as the number of new non-farm jobs topped 200,000 for the fifth consecutive month. Lastweek, headlines announced that June 2015was the 57th sequentialmonth ofpositive job creation.And at 5.3%, national unemployment is at its lowest level sinceApril 2008. Yet nearly all articles expressed universal disappointment – not only that the223,000 jobs createdwere significantly lower than predicted, but that, at2% year-over-year,wage growth is essentially stagnant. We can certainly speculate about what thesenumbersmean for commercial real estate (andBoston in particular)but the truth is that employment statistics havehad little to dowith greaterBoston occupancy trends in recent years. We know that thehealthcare, education and innovation sectors have protected us fromwild swings, but trends inworkplacedesign and remotework policies havehadmore of an impact on vacancy rates than employment trends. Sowe’re focusing on entrepreneurs opting for shared space,millennials heading for the coffee shop and established firmsdrivingdown square footage per employee.At least for now, in our region, these are the more significantdrivers of growth and contraction. MarketSummary At 1.7million square feet (MSF), mid-year absorption is the strongest ithasbeen sincemid-year2005. Metrowide, leasing activity is solid – and themajority of activity canbe attributed to ahandful of deals over 100,000SF (HoughtonMifflin,Bristol- MyersSquibb,GeneralDynamics in Westwood andDedham – toname a few this quarter). InBoston, investment sales activity pairedwith tightening vacancy means that classB rents are climbing – in some cases over 30% in the past6months. InCambridge, office availability has dropped 5.0 percentagepoints (to 8.1%) since the beginning of the year.And in an interesting suburban twist,markets in the southwere the liveliest for the first half of the year. Outlook With solidmarket conditons, a significantnumber of tenants in the market for over50,000 square feet and largeblocks of centrally located space rapidlybecoming extinct,we arewatching for the reemergence of speculative construction. UPDATEDW Q42014 OFFICESTATS INNERSUBURBS 4.8MSF BOSTON 62.7MSF CAMBRIDGE 10.1MSF 128CENTRAL 28.1MSF 128NORTH 10.2MSF 128SOUTH 10.1MSF 3/24SOUTH 1.4MSF METROWEST 4.8MSF 495WEST 8.6MSF 495NORTH 11.4MSF 495SOUTH 1.5MSF GreaterBoston 62.7 10.1 28.1 10.2 10.1 1.4 4.8 8.6 11.4 1.5 4.8 Economic Overview Q22014 Q22015 OverallAvailabilityRate 19.1% 17.5% AverageAskingRent $30.88PSF $32.11PSF NetAbsorption YTD 530,768 SF 675,207 SF GreaterBostonOfficeMarketSnapshot OverallOfficeStatisticsSummary Market Watch Boston | Second Quarter 2015 C lick to download