he Arcadis Urban Land Restoration Index (ULRI) ranks the relative development potential from restoring and redeploying environmentally impaired industrial properties across 27 U.S. cities. It combines assessments of the cost of cleaning up contaminated land and the development potential for residential, commercial or industrial use. The ULRI addresses the common theme of uncertainty related to the perceived viability of integrated restoration and redevelopment projects across the country. Developers and Investors, this will cause you to reconsider environmentally impaired industrial properties in your portfolios.

1. ARCADIS URBAN LAND RESTORATION INDEX
An Overview
April 2016

2. The Arcadis Urban Land Restoration Index (ULRI)
highlights the best locations to unlock value from
surplus property with environmental liabilities in 27 key
cities across the United States – addressing the cost of
cleanup; current or future potential value of the land
itself; and, a more abstract but critically important
factor – city 'dynamism’
Kurt Beil
Global Leader,
Environmental
Restoration
"The future of highly competitive cities may rest within the
untapped value of industrial surplus property, which can
serve as an engine to drive growth and transformation of
neighborhoods and communities.”

3. CITIES ARE GROWING
CONTINUED MIGRATION OF URBAN ENVIRONMENTS IS DRIVING A
RAPIDLY GROWING NEED FOR 'DEVELOPABLE' PROPERTY
Proactively tackling the legacy of our proud industrial
past by transforming environmentally distressed
properties into thriving urban spaces is a critical step
in securing a safe and sustainable future for our
growing cities – generating revenue, job creation, as
well as creating places of distinction to attract and
retain people and interest
The ULRI reveals it’s not only possible to create
outstanding sustainable and investment opportunities
– but also to generate revenue or capital through the
divestment/redevelopment process for further
reinvestment – supporting regeneration of additional
sites by focusing on cities with the greatest potential
and fewest barriers to restoration

4. SUSTAINABLE REGENERATION
Sustainable regeneration, driven by
economic change and the
popularity of urban living provides
common opportunities for
industrial land owners, city leaders
and developers with an interest in
promoting urban development and
restoration.
Our experience is that community
engaged interaction, well-defined
outcomes, and project transparency
drives efficiency, tightens schedules,
reduces cost, and aligns
environmental restoration with
redevelopment, resulting in
increased certainty and
likelihood for success

5. © Arcadis 2015
THE URBAN LAND RESTORATION INDEX AND YOU
June 9, 2016 5
INDUSTRIAL
PROPERTY
OWNER
The ULRI provides a strategic
decision-making tool
supporting critical decisions on
where and when to divest
properties.
It is a barometer, gauging the
potential and attractiveness of
cities for real estate investment,
enabling owners to spot
opportunities in their portfolio,
helping them maximize the
value from divestment of their
properties.
Additionally, it provides a
remediation cost index allowing
comparative analysis to
optimize spending on
environmental restoration.
DEVELOPER
The ULRI supports the
allocation of resources
within individual markets or
across an investment
portfolio, and identifying
opportunities to provide a
broad indication of the
potential cost on
redeveloping environmentally
stressed properties
CITY LEADERS
AND PLANNERS
The ULRI highlights
opportunities helping to
drive growth and competitive
edge, while also serving as a
city-peer benchmarking
metric highlighting locations
that need to raise their game.
The ULRI addresses the common theme of
uncertainty related to the perceived viability of
integrated restoration and redevelopment
across residential, commercial and industrial
projects throughout the United States.

6. © Arcadis 2015
THE CHALLENGES AND OPPORTUNITIES
DECOMMISSIONING TO DIVESTMENT – A LIFECYCLE APPROACH
June 9, 2016 6
From scheduled
decommissioning to
divestment, Arcadis has
identified 3 key areas that are
critical to enable a successful
project – Remediation;
Financing; and Community
To this end, Arcadis provides
a lifecycle approach to
portfolio management –
whether the clients goal is to
reduce liability and find an exit
out, create a value-add
divestment strategy or
implement operational
efficiencies for an asset.
‘Lifecycle’
Projects and
Portfolio
Management
Innovative
Divestments
Strategies
Public/Private
Funding
Natural Capital
Value
Community
Funding and
Financing
Cost of
Cleanup
Schedule
Integrated
Planning
Schemes
CHALLENGES OPPORTUNITIES

7. In all, 600 cities will generate 60% of GDP growth
between now and 20251
Interestingly, the most rapid rates of growth will come from mid-sized
cities – so although no other U.S. city can rival New York for GDP, many
are more attractive locations for new business, evidenced by faster
growth in housing prices and high demand for office space
1. McKinsey Global Institute
The dynamic balance between long-term city power and
near-term vigor is at the heart of city dynamism – our
research demonstrates that well-established cities may
not always have the strongest real estate markets or
the most supportive business environments
Nashville, TN
Ranked alongside
Charlotte in the
ULRI top five

8. CITY DYNAMISM
THREE KEY FACTORS INFLUENCE THE LONG-TERM ATTRACTION OF A
CITY AS A FOCUS FOR POTENTIAL REAL ESTATE DEVELOPMENT
Current state of real estate
markets for residential,
commercial and industrial
property
Inherent strength of a city,
determined by population,
the size of the city economy
and GDP per person
Vigor of a city, focused on the medium term,
measured using a series of metrics including the
cost of doing business, the rate of jobs growth,
quality of the workforce and wider measures of the
quality of a city's overall business environment

9. © Arcadis 2015
Helping to drive growth
and competitive edge,
while also serving as a
city-peer benchmarking
metric, highlighting
locations that need to
raise their game.
Providing a better
understanding of the
competitive position of a
city and the key factors
critical for effective
transformation of under-
utilized industrial sites.
THE ULRI TO HIGHLIGHT OPPORTUNITIES
CITY LEADER AND PLANNER

10. © Arcadis 2015
CITY DYNAMISM VERSUS BEST CITIES FOR BUSINESS
THE ULRI PROVIDES AN ADDED DIMENSION OF INSIGHT, BY ACCOUNTING FOR THE
DIFFERENT DYNAMICS OF RESIDENTIAL, COMMERCIAL AND INDUSTRIAL SECTORS
While Detroit currently ranks low on the Index, recent trends show
that the real estate market is on the upswing and that may present
new development opportunities.

11. © Arcadis 2015
THE ULRI AS A STRATEGIC TOOL
THE INDUSTRIAL PROPERTY OWNER
Supporting critical
decisions on where and
when to divest properties;
enabling triage of sites in a
portfolio that are likely to
be high value ‘diamonds’ ;
and lowering the risk of
surplus property disposal.
The URLI serves as a
barometer, comparing
relative remediation costs
across 27 cities, and
gauges the potential and
attractiveness of cities for
real estate investment,
enabling owners to spot
opportunities in their
portfolio and helping to
maximize the value of
their properties.

12. © Arcadis 2015
COST OF CLEANUP
ACROSS 27 CITIES IN THE U.S. THE COST OF FULL REMEDIATION CAN VARY
BY AS MUCH AS 2.5 TIMES ACROSS THE SELECT CITIES
June 9, 2016 12
This typically saves 50 to 60%
of cleanup cost

13. © Arcadis 2015
THE ULRI TO SUPPORT THE ALLOCATION OF RESOURCES
THE DEVELOPER AND INVESTOR
Within individual markets
or across an investment
portfolio, providing a broad
indication of the potential
cost and return on
redeveloping
environmentally stressed
properties, allowing for a
weighted assessment of
the attraction of properties
and prioritization of
opportunities for further
viability analysis.

14. COST DIFFERENTIALS FOR LAND REMEDIATION

15. Locations that are both dynamic and have
comparatively low remediation costs score highly in
the ULRI – we call these locations ‘sweet spots’
Sweet spot locations don’t just cover the big cities such as New York and
San Francisco, they also include younger, faster growing cities that may
not have the critical mass of Chicago, but have stronger growth
characteristics and often lower remediation costs
Our analysis poses the question – is it better to target
a dynamic city such as Charlotte, or an established, more
expensive location, such as Houston? The right answer
yields greater short-term gains that capitalize on
the broader trends that our research has exposed
Charlotte, NC
Booming financial
services sector

16. © Arcadis 2015
THE SWEET SPOTS
OPPORTUNITIES WHERE PROPERTY DIVESTMENT
MEETS DEVELOPMENT NEEDS
June 9, 2016 16

17. CITY RESTORATION SWEET SPOT INDEX
BREAKING IT DOWN BY ASSET TYPE
Our analysis* shows clear differentiation between a city’s attractiveness relative to
specific asset classes (commercial, industrial and residential). This is important given
land zoning or opportunities to respond to emerging trends in sustainable urban
development.
*In compiling the ULRI, we have developed a weighted index derived from a range of quantitative
and qualitative data from open sources, providing a consistent measure of city potential.
TOP 5 BOTTOM 5

18. © Arcadis 2015
MOST ATTRACTIVE CITIES
BREAKING IT DOWN BY ASSET TYPE (CONT’D)
Commercial
Development
Restoration
Sweet Spot
Index (2015)
Residential
Development
Restoration
Sweet Spot
Index (2015)

19. © Arcadis 2015
TRANSFORMATION INTO A REVITALIZED URBAN COMMUNITY
MIXED-USE SUSTAINABLE URBANIZATION
The opportunity to secure
available properties that will
yield a significant return on
investment with smart
restoration strategies. By
coupling restoration and
redevelopment, savvy
developers and investors can
capitalize on untapped
markets that exist in cities
across the United States,
while further enabling
sustainable growth.
$5M
cleanup fund secured
INCREASED
property values
$17M
annual tax revenue
12,000
new permanent jobs
$200M
annual retail sales
PHOENIX AWARD
environmental cleanup significance
PUBLIC-PRIVATEFINANCIALPARTNERSHIP
–BELMARURBANCENTER
$300M
sale to private developer

20. © Arcadis 2015
FROM SPACE ROCKETS TO COMMERCIAL REAL ESTATE
GENERATING RETURNS – REDEVELOPMENT OF FORMER NASA SITE
Restoration and redevelop-
ment of underutilized
properties can drive positive
change, creating thriving
neighborhoods, generating
sustainable economic
growth and driving
competitive advantage as
Americans seek out the best
places to live, work, and play.
The streamlining of programs
that enable restoration and
redevelopment, can serve as
an enabler to attract
investment and achieve
sustainable development.
$45M
estimated in expected returns from
leases, sales tax and property tax
$800M
private investment stimulated
GROUP ACHIEVEMENT
award to Arcadis from NASA
PHOENIX AWARD
from U.S. EPA
DOWNEYLANDINGGENERATESSALESTAX
REVENUESTOFUNDCITYSERVICES

21. © Arcadis 2015
HARNESSING THE VALUE OF INDUSTRIAL SURPLUS PROPERTY
URBAN TRANSFORMATION
Arcadis advocate a
coordinated effort that
integrates community
outreach and engagement
with upfront master
planning that supports
specific environmental
restoration, including
decommissioning and
demolition of facilities.
Additionally, we have
developer partners and
private equity relationships
that can further add
investment aimed at
enhancing the property
value and marketability of
specific projects.
EXTENSIVE CLEANUP
70,000 cubic yards of coke slag
removed
PARCELED REMEDIATION
systematic cleanup for expedient
segmented property release and
development
COMMUNITY TRUST
new businesses and results
fostered community relations
PETROLEUM FACILITY
provides jobs and returning the
property to a valuable community
asset
WISCONSINSTEELWORKS

22. © Arcadis 2015
BENEFITS OF EFFECTIVE TRANSFORMATION
UNTAPPED INVENTORY OF POTENTIALLY HIGH-VALUE LAND
Continuing demand for
'developable' properties in city
centers is creating a
significant opportunity to
manage and divest
underutilized properties in
both mature cities, such as
Los Angeles and New York,
and emerging cities, such as
Nashville and Denver.
The result is not only a
financially sound real estate
strategy, but an opportunity
to transform historical
environmental liabilities
into positive future
legacies.
$2.2B
new private capital investment
6M SqFt
new building space
2,200
new permanent jobs
6,500
construction jobs
1,000
new affordable housing units
$350M
tax revenue
NEWYORKCITYMAYOR’SOFFICEOF
ENVIRONMENTALREMEDIATION(OER)

23. Arcadis performs $500M in environmental restoration
annually across the U.S. with over $1B in guaranteed,
fixed-price remediation programs completed to-date.
With 150 years of experience across environmental
restoration, urban planning, development and resiliency,
and a proven track record of bringing private, public, and
investment communities together to deliver successful
remediation and redevelopment programs.
The Arcadis ULRI provides unique insights into market
conditions and opportunities that truly represent the nexus
where cities, investors, and industrial land owners can
collaborate to create rejuvenated urban landscapes that
leave a lasting, sustainable heritage
See also…
Sustainable Cities
Index 2015