>> West L.A. Rent Growth Climbs into Second Half

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1 Research & Forecast Report WEST LOS ANGELES OFFICE Accelerating success. >> West L.A. Rent Growth Climbs into Second Half Key Takeaways > The average asking monthly rent for West Los Angeles rose to $4.74 per square foot (P) full service gross (FSG), a $0.11 increase over the previous quarter. > Demand rose, recording 294,000 square feet of positive absorption. Gains in Century City and Westwood figured prominently for the quarter. > The under-construction pipeline held steady, adding two more planned properties, while five projects delivered - A total of 15 buildings remain in the pipeline > Investment maintained momentum with four properties trading, highlighted by DivcoWest s acquisition of 331 N. Maple Drive in Beverly Hills. > Leasing activity recorded 1,413,900 square feet, marking two consecutive quarters of velocity exceeding 1.4 million square feet. West Los Angeles Office Market in the West Los Angeles market rose by 10 basis points, as the delivery of a few partially vacant buildings negated absorption gains in Century City and Westwood. Rents continued their torrid ascent, rising by $0.11 to $4.74 P FSG, boosting year-over-year growth back over 6%. Leasing activity matched last quarter s 1,417,400 square feet, recording 1,413,900 square feet of velocity. The West Los Angeles market is poised to add more than 1.34 million square feet in the next two years as construction and creative conversions deliver. Leasing efforts for these projects will go a long way in determining whether vacancy stabilizes in the West Los Angeles market or continues to rise. Market Indicators Relative to prior period Class A Class B All Classes Average Asking Rent $4.81 $4.19 $4.74 Change from Q1 18 ($) +$0.04 +$0.05 +$0.11 Y.O.Y. Change (%) 5.0% 5.0% 6.4% 12-mo Employment Growth (%) 12-mo Actual Employment Change Nonfarm Prof. & Business Services Forecast Net Absorption Construction Rental Rate Summary Statistics West Los Angeles, Class A Class B All Classes Rate 15.3% 9.7% 14.0% Change from Q1 18 (Basis Points) Net Absorption* Construction Completions* Under Construction* *, Thousands Asking Rents West Los Angeles, Labor Force Los Angeles County, May 2018 Financial Activities 1.4% 2.9% 0.1% 63,900 17,

2 WEST LOS ANGELES OFFICE > The overall vacancy rate for West Los Angeles rose 10 basis points for the second consecutive quarter to 14.0%. > Class A properties accounted for most of the movement in vacancy, with a 20-basis-point increase from 15.1% to 15.3%. > rose despite positive absorption due to the delivery of partially vacant buildings in Santa Monica, Culver City and Beverly Hills. > FORECAST: Heading into the second half of the year, vacancy should mirror 2018 s trend thus far of incremental tightening, though much of that will depend on the occupancy of current construction projects at delivery. Absorption and Leasing Activity > Absorption recorded 294,000 square feet for the quarter. Leasing velocity nearly matched last quarter s 1,417,400 square feet, posting 1,413,900 square feet. > Marina Del Rey/Venice led the market in velocity as Pepperdine University renewed for 110,000 square feet at Howard Hughes Center, while Regus subsidiary Spaces signed for 67,700 square feet in Univision s former headquarters at 5999 Center Drive. > Talent agency Paradigm occupied its 82,900-square-foot space at 8942 Wilshire Boulevard in Beverly Hills, while Levine Leichtman Capital Partners occupied 24,200 square feet at 335 N. Maple Drive. In Santa Monica, Starz took possession of 60,200 square feet at the newly delivered Santa Monica Gateway campus. > FORECAST: West Los Angeles place as the premier submarket for a variety of industries will help buoy demand through the end of Rental Rates > After moderate growth the past few quarters, monthly asking rental rates surged to $4.74 P, an increase of $0.11 from the previous quarter. > The current year-over-year growth of 6.4% led to the current rental rate being the high-water mark since Colliers started tracking rents in > The influx of high-quality new space, as well as increasing rents in Class B inventory, have led to some markets seeing year-over-year growth exceeding 7%, and in some cases, more than 10%. > FORECAST: Demand in the entertainment and content generation industries will continue to put upward pressure on West Los Angeles rental rates. Historical v. Rents West Los Angeles Office Market Q $ P FSG PER MONTH (WEIGHTED) Net Absorption by Submarket West Los Angeles Office Market Q2 18 $4.90 $4.80 $4.70 $4.60 $4.50 $4.40 $4.30 $4.20 $4.10 $4.00 $3.90 $3.80 $3.70 $3.60 $3.50 $3.40 $3.30 $3.20 $ , ,000 2Q14 2Q15 2Q16 2Q17 2Q18 80,000 60,000 40,000 20,000 0 (20,000) (40,000) 64,800 CULVER CITY (15,500) (16,800) MIRACLE MILE RENTS WEST HOLLYWOOD 100,200 CENTURY CITY VACANCY 69,400 22,700 14,400 (4,600) (5,100) 25,400 Historical Leasing Activity West Los Angeles Office Market Q WESTWOOD OLYMPIC CORRIDOR WEST LOS ANGELES BRENTWOOD SANTA MONICA MARINA DEL REY/VENICE 18% 16% 14% 12% 10% 8% 6% 4% % VACANT (TOTAL) 39,100 2Q14 2Q15 2Q16 2Q17 2Q18 BEVERLY HILLS 2

3 WEST LOS ANGELES OFFICE Construction > Four properties came to market, highlighted by the delivery of Colorado Creative Studios Santa Monica Gateway. The 200,000-square-foot property delivered partially leased to Starz. > The West Los Angeles construction pipeline remains active. A bevy of properties, including CIM Group s 953 N. Sycamore Avenue in West Hollywood, are due to deliver in the third quarter of > Two new projects broke ground in Culver City and West Hollywood, adding just under 125,000 square feet to the pipeline. > FORECAST: West Los Angeles constitutes 31% of new construction in Los Angeles County, and robust construction activity will persist through Historical Net Absorption & Construction Completions West Los Angeles Office Market Q , , , ,000 0 (200,000) (400,000) (600,000) (800,000) (1,000,000) (1,200,000) NET ABSORPTION CONSTRUCTION COMPLETIONS 2Q14 2Q15 2Q16 2Q17 2Q18 Investment Trends > Investment activity for properties greater than 25,000 square feet decreased from the previous quarter s total of $350.5 million, recording $249 million in investment sales volume. > LaSalle Investment Management acquired the twobuilding Marina Park campus in Marina Del Rey from Alliance Bernstein for $83.8 million ($560 P). The property was 79% leased at the time of sale and sold after an extensive value-add renovation. > Another notable sale took place in Beverly Hills. After divesting the Waters Edge campus to Rockwood Capital last quarter, DivcoWest purchased 331 N. Maple Drive for $82.2 million, or $917 P. > FORECAST: Robust demand from the entertainment and media industries will continue to keep West Los Angeles on the radar of institutional investors looking for either value-add and core opportunities. Investment Trends Chart West Los Angeles Office Market $/P $800 $700 $600 $500 $400 $300 $200 $100 $- Average Price P Cap Rate Cap Rate Outlook The West Los Angeles market regained some momentum to finish the first half of experienced a slight uptick due to the delivery of vacant space, but demand remained positive for the quarter. Rent fundamentals found their footing as year-over-year growth exceeded 6%. West Los Angeles continues to be one of the premier office markets for entertainment and tech tenants, and we expect this to remain so for the foreseeable future whether rent growth continues to slide or not. Developers seem to agree, as new projects break ground to replace deliveries to the market. Unemployment Rate U.S., CA & Los Angeles County May % 4.4% 4.3% 4.2% 4.1% 4.0% 3.9% 3.8% 3.7% 3.6% 3.5% 3.8% 4.2% 4.4% United States California Los Angeles County 3

4 WEST LOS ANGELES OFFICE Market Description West Los Angeles is a moderately large office market comprised of 56.2 million square feet, representing 19% of the total office space in buildings 25,000 square feet and greater in the Los Angeles Basin. It is also a moderately young and dense market, with 40% of its space built in 1985 or later, and 70% of its space contained within mid-rise and high-rise buildings. It has a large concentration of highmargin firms (including those in the entertainment, digital media, software, and finance sectors), and is situated in the midst of some of the most affluent neighborhoods nationally. Submarket Map RECENT TRANSACTIONS & MAJOR DEVELOPMENTS West Los Angeles Office Market SALES ACTIVITY PROPERTY ADDRESS SIZE SALE PRICE PRICE P BUYER SELLER Marina Park (2 Bldgs.)., Marina Del Rey 149,700 $83,815,000 $560 P LaSalle Investment Management AllianceBernstein 331 N. Maple Dr., Beverly Hills 89,600 $82,200,000 $917 P DivcoWest RREEF Management LLC 9171 Wilshire Blvd., Beverly Hills 106,900 $69,250,000 $648 P Cruzan/Cigna John Hancock 9300 Wilshire Blvd., Beverly Hills 61,400 $13,750,000 $224 P SLH Investments Hudson Pacific Properties LEASING ACTIVITY PROPERTY ADDRESS LEASED LEASE TYPE BLDG TYPE LESSEE LESSOR 6100 Center Dr., Los Angeles 110,000 Renewal A Pepperdine University Blackstone 5999 Center Dr., Los Angeles 67,700 Direct A Spaces CBRE GI 2401 Colorado Ave., Santa Monica 62,600 Expansion A Edmunds.com Equity Office 1888 Century Park E., Century City 31,100 Expansion A First Republic Bank CommonWealth Partners 6701 Center Dr., Los Angeles 16,900 Renewal A Seg Hold Co. Blackstone MAJOR DEVELOPMENTS PROJECT DEVELOPER SIZE SUBMARKET STATUS ESTIMATED COMPLETION 5865 S. Campus Center Dr., Playa Vista ASO Group 310,000 Marina Del Rey/Venice Under Renovation Q National Blvd., Culver City City of Culver City 200,000 Culver City Under Construction Q Culver Blvd., Culver City City of Culver City 70,500 Culver City Under Construction Q Colorado Ave., Santa Monica Seritage Growth Properties 52,800 Santa Monica Under Renovation Q Exposition Blvd/, Los Angeles Exposition Owner Llc 80,400 Olympic Corridor Under Construction Q N. Sycamore Ave., West Hollywood CIM Group 65,800 West Hollywood Under Construction Q Glencoe Ave., Marina Del Rey Glencoe Avenue Associates LLC 65,200 Marina Del Rey/Venice Under Construction Q McConnell Ave., Marina Del Rey Marina Creative Office LP 56,300 Marina Del Rey/Venice Under Renovation Q N. Formosa Ave., West Hollywood CIM Group 97,700 West Hollywood Under Construction Q Alla Rd., Marina Del Rey (3 Bldgs) CDC Mar Panama LLC 161,000 Marina Del Rey/Venice Under Construction Q W. Jefferson Blvd., Culver City Rad Beverly Llc 49,000 Culver City Under Construction Q Rodeo Rd, Culver City Westport Capital Partners 40,000 Culver City Under Renovation Q Colorado Ave., Santa Monica Colorado Campus Owner LLC 37,000 Santa Monica Under Construction Q Exposition Pl., Culver City Lion Real Estate Group, LLC 29,700 Culver City Under Renovation Q La Cienega Pl., Culver City Zacuto Group 25,200 Culver City Under Renovation Q

5 WEST LOS ANGELES OFFICE OFFICE OVERVIEW West Los Angeles Office Market EXISTING PROPERTIES VACANCY ACTIVITY ABSORPTION CONSTRUCTION RENTS Submarket/ Class Bldgs Inventory Direct Sublease Prior Qtr Leasing Activity Current Qtr Leasing Activity YTD Net Absorption Current Qtr Net Absorption YTD Completions Current Qtr Under Construction Weighted Avg Asking Lease Rate A ,012, % 1.1% 15.3% 15.1% 1,176,100 2,354, , , , ,200 $4.81 B ,306, % 1.0% 9.7% 10.0% 236, , , ,500 85, ,400 $4.19 C , % 1.4% 3.4% 2.5% 1,800 2,700 (6,600) 15, $3.18 CENTURY CITY SUBTOTAL 20 10,594, % 1.0% 8.0% 9.0% 140, , ,200 86, $4.70 SANTA MONICA SUBTOTAL 105 9,633, % 0.8% 13.6% 11.7% 258, ,600 (5,100) 9, ,200 89,800 $5.55 BEVERLY HILLS SUBTOTAL 74 6,964, % 0.6% 14.5% 13.2% 170, ,400 39, , ,800 0 $5.55 MIRACLE MILE SUBTOTAL 25 5,279, % 1.7% 18.0% 17.7% 53, ,900 (15,500) (127,500) 0 0 $3.94 WESTWOOD SUBTOTAL 27 4,743, % 1.3% 14.5% 15.9% 200, ,600 69,400 (19,800) 0 0 $4.25 CULVER CITY SUBTOTAL 51 4,138, % 0.3% 22.8% 22.8% 124, ,100 64, ,700 85, ,400 $4.19 MARINA DEL REY/VENICE SUBTOTAL 59 6,226, % 3.1% 20.2% 20.6% 245, ,100 25, , ,500 $4.86 BRENTWOOD SUBTOTAL 20 3,370, % 0.4% 9.2% 9.1% 43,000 80,300 (4,600) (44,200) 0 0 $4.56 OLYMPIC CORRIDOR SUBTOTAL 27 3,301, % 0.2% 4.9% 5.5% 59, ,400 22,700 10, ,400 $4.31 WEST HOLLYWOOD SUBTOTAL 32 2,954, % 1.4% 17.6% 17.0% 91, ,300 (16,800) 55, ,500 $4.61 WEST LOS ANGELES SUBTOTAL , % 0.0% 16.4% 18.1% 28,300 36,200 14,400 12, $3.58 MARKET TOTAL TOTAL ,054, % 1.1% 14.0% 13.9% 1,413,900 2,831, , , ,000 1,340,600 $4.74 Note: revisions to the inventory base were made effective, historical data reported here reflect these revisions and may not match data reported in previous quarters. 5

6 WEST LOS ANGELES OFFICE Definitions of key terms in this report Rentable Square Feet: Office space in buildings with 25,000 square feet or more of speculative office space, including competitive space in Class A, B and C single-tenant and multi-tenant buildings. Excludes non-competitive owner-occupied buildings, buildings that include 30 percent or greater of medical or retail space, and space that is under-construction, underrenovation or off-market. Class A Space: Space that an image-conscious company would lease for its headquarters. Typically, this space has a very high level of finish, an excellent location and commands the highest rents in the market. Class B Space: Highly functional, attractive space that is less prestigious than Class A Space and commands lower rental rates. Class C Space: Functional, competitive space with a lower level of finish and/or a less desirable location than Class B Space and commands lower rental rates. Low-Rise: Buildings with four or fewer total floors. Mid-Rise: Buildings with five or 13 total floors. High-Rise: Buildings with 14 or more floors. Direct : Space in existing buildings that is vacant and immediately available during the quarter for direct lease, plus space that is vacant but not available for direct lease or sublease (for example, space being held for a future commitment). : Space in existing buildings that is vacant and immediately available during the quarter for direct lease or for sublease, plus space that is vacant but not available for direct lease or sublease. Net Absorption: Net change in occupied square feet from one period to the next (including the impact of change in vacant space available for sublease). Leasing Activity: Square feet leased from all known transactions completed during the quarter, excluding lease renewals. Weighted Average Asking Rental Rates: Rental rates weighted by the total square feet available for direct lease. Data, reported on a monthly basis, is based on per square foot (P) full service gross (FSG) rents and includes all costs associated with occupying the space, including taxes, insurance, maintenance, janitorial service and utilities. Space Added (Net): square feet added during the quarter via construction completions, including renovated space returned to market, less total square feet taken off-market due to demolitions or conversions. Under Construction: Includes buildings that are in some phase of construction, beginning with foundation work and ending with the issuance of a Certificate of Occupancy. Technical Note: Colliers International is continuously refining its database. The data shown in the historical tables and graphics in this report have been adjusted to take into account these changes in the database. This report has been prepared by Colliers International for general information only. Information contained herein has been obtained from sources deemed reliable and no representation is made as to the accuracy thereof. Colliers International does not guarantee, warrant or represent that the information contained in this document is correct. Any interested party should undertake their own inquiries as to the accuracy of the information. Colliers International excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damages arising there from. This report and other research materials may be found on our website at offices in 69 countries on 6 continents United States: 145 Canada: 28 Latin America: 23 Asia Pacific: 79 EMEA: 131 UNITED STATES: Downtown LA Office License No S. Figueroa St., Ste Los Angeles, CA JAMES MALONE Senior Managing Director Greater Los Angeles CHRIS WONG Regional Research Analyst Research Services > $2.7 billion in annual revenue > 2.0 billion square feet under management > Over 15,400 professionals TEL: FAX: CAITLIN MATTESON Research Director Research Services 6