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DRAFT <br />Table 2. Financial Feasibility Assessment Harbor View Project Parcels <br />Development cost by major cost Commercial Park Tech Office (1.2M SF) * Bio Tech @ 800K SF <br />category <br />Hard Costs Industry Standard Higher than Tech Office due to labs <br />By $300-$500 SF <br />Soft Costs of A&E, Financing <br />Industry Standard <br />Payments (Fees and Pledges) <br />Higher than Bio Tech due to more SF and <br />developer pledge of $20M <br />Site and Infrastructure Improvement <br />High cost — same for either property reuse <br />Costs <br />Land Costs —Total and per SF of reuse <br />Same cost — less per sq. ft. than alternative use <br />given higher proposed SF <br />Rent Expectation and Return on Cost <br />Rents high but below Palo Alto/Menlo Park; <br />likely to meet CBRE opinion of Return on Cost <br />requirements for Class A office developments <br />in non CBD Bay Area locations such as the <br />subject site. <br />*Rounded from 1,179,747 SF and 825,823 SF, respectively. <br />Source: KMA/Sandis <br />\\SF-FS2\wp\18\18610\010\Financial Feasibility -Harbor View 1.16.18.docx <br />Higher than Tech Office due to labs <br />Lower than Tech Office due to lower SF <br />High cost — same for either property reuse <br />Same cost — more per sq. ft. than alternative <br />use given lower entitled SF <br />Nearly the same rent as Tech Office, but not <br />premium rent expectations since not a Bay <br />Area hot spot for Bio Tech development; also, <br />given high lab costs, unlikely to achieve Return <br />on Cost to incentivize development of this use, <br />as appears to be evidenced by lack of <br />densification of this use at Seaport Center <br />