Mike Pearson, President NAI Mountain Commercial. NAI Mountain Commercial 2017 Annual Report Page 2 of 13

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2 Mike Pearson, President NAI Mountain Commercial NAI Mountain Commercial was founded originally as Vail Commercial Advisors in April 26, to fulfill the unmet need of providing dedicated commercial property solutions for investors, property owners, business owners and developers in the Colorado Resort Markets. With more than fifty combined years of commercial management experience in the Resort Market, NAI Mountain Commercial possesses the requisite expertise and work ethic to ensure our clients assets are supported with the level of care and individual attention they deserve. NAI Mountain Commercial is the only company 1% dedicated to commercial and investment real estate from Summit to Pitkin Counties and 1% dedicated to maximizing your return on investment. NAI Mountain Commercial offers something unique to the Rocky Mountain Resort Market as the only dedicated and full-service commercial real estate provider for property owners, business owners, and investors. With access to 6,7 professionals and 375 offices worldwide through our affiliation with NAI Global, NAI Mountain Commercial has the tools and resources to represent you in all aspects related to office, retail, light industrial, multi-family, and mixed-use properties. Whether you are looking for brokerage, leasing, property or asset management, consulting, tenant representation, or market research, we offer a full purview of real estate services. We look out for your best interest by taking time to understand your specific needs, and then guide you through the entire process to ensure successful and optimal delivery. As part of a global network, we have full access to industry experts and the latest technologies, which we utilize to provide the most effective solutions for you. There is absolutely no substitute for knowledge in this industry. Real estate transactions often hinge on accurate analysis, creativity, decisiveness, the ability to identify every value-enhancing opportunity, and a network of trusted affiliates and associates. These advantages, gained through years of hard work, demonstrated business acumen, and a resourceful global network, are found among every member of the NAI Mountain Commercial team. The proven success of the NAI Mountain Commercial team is a testament to the vision of its founder. As a cornerstone of any good company, performance is measured by growth, revenue, and the continued value it provides to those it serves. The consistent results achieved by NAI Mountain Commercial firmly support the company s successful business model, and these achievements are transferred to the many satisfied clients and business partners of the firm. In life and in business there is no substitute for action. Without action, goals are not achieved and ideas remain stagnant. We are empowered by sharing, communicating, and collaborating, and we pride ourselves on being global in our thinking, but local in our approach. NAI Mountain Commercial 217 Annual Report Page 2 of 13

3 Our History... Your Future... 2 Knowledge & Creative Solutions... 2 Action... 2 Trends... 4 Upper Valley Commercial Occupancy... 4 Vail Village Rental Rates... 4 Lionshead Rental Rates... 4 Trends... 5 Mid-Valley Commercial Occupancy... 5 Avon/Eagle Vail Rental Rates... 5 Edwards Rental Rates... 5 Beaver Creek Rental Rates... 5 Trends... 6 Lower Valley Commercial Occupancy... 6 Eagle/Gypsum Rental Rates... 6 Commercial Transactions... 7 Residential Transactions... 7 Eagle County Building Permits... 7 Eagle County Retail Sales... 8 Eagle County Sales Tax by Town... 8 Eagle County Unemployment... 8 Enplanements... 8 About Vail, Colorado Year Change in Spending... 9 Top Spending Categories... 9 Top Activities in the Mountain Region... 1 Top Visiting US States... 1 Vehicles in Parking Structures... 1 Direct Travel Impacts in Eagle County... 1 Showcase Sale Listing Showcase Sale Listing Showcase Sale Listing Sales Transactions Facilitated by NAI Mountain Commercial: Lease Transactions Facilitated by NAI Mountain Commercial: NO WARRANTY OR REPRESENTATION, EXPRESS OR IMPLIED, IS MADE AS TO THE ACCURACY OF THE INFORMATION CONTAINED HEREIN, AND THE SAME IS SUBMITTED SUBJECT TO ERRORS, OMISSIONS, CHANGE OF PRICE, RENTAL OR OTHER CONDITIONS, PRIOR SALE, LEASE OR FINANCING, OR WITHDRAWAL WITHOUT NOTICE, AND OF ANY SPECIAL LISTING CONDITIONS IMPOSED BY OUR PRINCIPALS NO WARRANTIES OR REPRESENTATIONS ARE MADE AS TO THE CONDITION OF THE PROPERTY OR ANY HAZARDS CONTAINED THEREIN ARE ANY TO BE IMPLIED. NAI Mountain Commercial 217 Annual Report Page 3 of 13

4 Dollars per Square Foot Dollars per Square Foot The Vail Village and Lionshead markets continue to be strong. Most vacancies that do come on market are filled in a very short amount of time. The vacancy rate down ticked marginally with a year-end rate of 1.1%. Net absorption was positive at approximately 3,22 square feet, decreasing the overall vacancy rate by 28 basis points. It will be interesting to see if there is any movement in the retail sector after the close of the 17/18 ski season, which is shaping up to be one of the worst snowpack years in quite some time. SF Available: 1,854 SF Occupied: 1,6,933 Total SF: 1,71, Prime Retail Secondary Retail Prime Retail Secondary Retail NAI Mountain Commercial 217 Annual Report Page 4 of 13

5 Dollars per Square Foot Dollars per Square Foot Dollars per Square Foot The weakening of the Mid-Valley slowed coming into the close of 217 with a few small leases signed in the retail sector. Vacancy experienced a small downtick with a new rate of 2.61%. Net absorption was positive at approximately 2,168 square feet, slightly decreasing the year-end vacancy rate by 7 basis points. SF Available: 87,584 SF Occupied: 3,264,174 Total SF: 3,311, Retail Office Flex Retail Office Flex Prime Retail NAI Mountain Commercial 217 Annual Report Page 5 of 13

6 Dollars per Square Foot The Lower Valley was nearly flat at the close of 217. The vacancy rate was in line with Q3, posting a rate of 2.51%. Net absorption was slightly positive at approximately 1, square feet, decreasing the vacancy rate by 2 basis points from the Q3 level of 2.53%. SF Available: 65,611 SF Occupied: 2,553,369 Total SF: 2,618, Retail Office NAI Mountain Commercial 217 Annual Report Page 6 of 13

7 Data Source: Land Title Guarantee Company Data Source: Land Title Guarantee Company $35 $2,5 $3 $25 $2 $2, $1,5 $15 $1 $5 $1, $5 $ $ Dollar Volume of Commercial Transactions (in Millions) Dollar Volume of Residential Transactions (in Millions) $2 $18 $16 $14 $12 $1 $8 $6 $4 $2 $ Data Source: Eagle County US Valuation of Building Permits (in Millions) Number of Building Permits NAI Mountain Commercial 217 Annual Report Page 7 of 13

8 Sales Tax Collected (in Millions) Retail Sales Data Source: Colorado Department of Revenue $3,, $2,5, $2,, $1,5, $1,, $5, $ (through Feb.) Data Source: Eagle County Finance Department $7. $6. $5. $4. $3. $2. $1. $ Gypsum Town of Eagle Vail Avon Unincorporated Data Source: United States Bureau of Labor Statistics Data Source: Eagle County Airport 12% 25, 1% 8% 6% 4% 2% 2, 15, 1, 5, % Percentage Unemployed Number of Boardings NAI Mountain Commercial 217 Annual Report Page 8 of 13

9 Direct Spending % Change Average Spend Located in Eagle County at the base of Vail Mountain, the Town of Vail combines the best alpine resorts in the world with a friendly, small-town feel. Vail is served by the Eagle County Airport, located 3 miles to the West near Gypsum. Within the town, many areas are pedestrianized, modeled after car-free European ski towns. Vail also operates the largest free shuttle bus system in the United States. The town is home to over 5, people, but attracts more than 2.2 million visitors each year. Vail s natural beauty is unsurpassed, with over a thousand acres of open space and a surrounding 35, acres of national forests, including Vail Mountain. With a vertical height of 3,45 feet, over 5, skiable acres, 31 ski lifts, and 195 marked ski trails on three faces; Vail Mountain is the largest ski mountain in North America. In addition to skiing, the Town of Vail is home to a host of year-round recreational activities, including hiking and mountain biking. The town s cultural center is also growing, with an expanding culinary center and notable art and music venues throughout the summer, including: the Vail Film Festival, Vail International Dance Festival, and Bravo! Vail. Data Source: 217 Colorado Tourism Roadmap, Colorado Tourism Office, Dean Runyan Associates Data Source: 217 Colorado Tourism Roadmap, Colorado Tourism Office, Longwoods International % 4% 35% 3% 25% 2% 15% 1% 5% % Denver Metro Mountain Resorts Pikes Peak All Other $1,4. $1,2. $1,. $8. $6. $4. $2. $- Year 1 Year 5 NAI Mountain Commercial 217 Annual Report Page 9 of 13

10 Overnight Leisure Trips (in Thousands) Number of Vehicles (in Thousands) While it s true that over 1.6 million skiers and snowboarders travel to Vail every winter to take advantage of the more than 5, skiable acres on the largest ski mountain in the United States, Vail isn t just skiing. The town attracts over 65, visitors every summer to enjoy the natural beauty of the rocky mountains (52%), for rest and relaxation (5%), to take advantage of the town s shopping, dining, and leisure activities (28%), as well as a host of outdoor activities available (24%). With such a high satisfaction rate among summer Vail visitors (9% say they are Extremely Satisfied with their Vail experience), it s no wonder that over 8% of the 65, summer visitors are return visitors to Vail. Data Source: 217 Colorado Tourism Roadmap, Colorado Tourism Office, Longwoods International 215 National/State Parks Swimming Camping Other Hiking Skiing/Snowboarding Mountain Climbing Data Source: Town of Vail Data Source: Town of Vail /12 Season 12/13 Season 13/14 Season 14/15 Season 15/16 Season Vail Village Lionshead $1,2 $1, $8 $6 $4 $2 $ Data Source: Colorado Travel Impacts 2-215p, Dean Runyan Associates Spending (in Millions) Earnings (in Millions) Employment (# of Jobs) 7,8 7,6 7,4 7,2 7, 6,8 6,6 6,4 6,2 6, 5,8 5,6 NAI Mountain Commercial 217 Annual Report Page 1 of 13

11 Residential In-Fill Opportunity: $975, 761 Sylvan Lake Rd, Eagle, CO Unique opportunity to purchase a shovel ready site in one of the most sought after Colorado mountain resort markets. There are no workforce housing requirements to be met, and current zoning allows for 2 condominiums or free market apartments. Reduced infrastructure costs as all utilities are already at the street and no additional parking is required. Extremely high barriers to entry exist in Eagle County with much land taken up by the national forest and Bureau of Land Management. Shortage of housing has been named one of the primary concerns of Eagle County. Gas Station & C-Store Development: $95, 2 Colorado River Rd, Gypsum, CO acre flat commercial pad site currently entitled for a fuel station and convenience store at Interstate 7 Exit 133. Programmed to be the only commercial amenity in the Two Rivers Village Community. Dotsero is located at the confluence of the Colorado and Eagle Rivers making it an attractive location for both full time residents and summer tourism. Located approximately 1,2 feet from CDOT truck parking lot 133. Eagle Vail Commercial Service Center: $925, 4928 HWY 6, Units 2C & 2G, Avon, CO Located in Eagle-Vail business district, Eagle County. High visibility from I-7 and HWY 6. Minutes to Vail and Beaver Creek ski resorts. Abundant surface parking. Roll-up doors and man doors in rear of units. 3,849 SF can be divided into 1,767 SF and 2,82 SF units. NAI Mountain Commercial 217 Annual Report Page 11 of 13

12 Property Address Price Submarket SSV Warehouse 95 Nottingham Rd, Avon $2,425, Mid-Valley Edwards Commercial Park 21 Edwards Village Blvd, Edwards $25, Mid-Valley Amber Building 216 Main St, Edwards $445,2 Mid-Valley Addison Lot 761 Sylvan Lake Rd, Eagle $425, Lower Valley 116 Capitol Building 116 Capitol, Eagle $85, Lower Valley Property Address Size Submarket Benchmark Building 82 E Beaver Creek Blvd, Avon 1,8 SF Mid-Valley Edwards Corner 56 Edwards Village Blvd, Edwards 2,616 SF Mid-Valley 1 st & Main Building 97 Main St, Edwards 1,86 SF Mid-Valley Villa Montane 63 Avondale Ln, Beaver Creek 1,262 SF Mid-Valley Avon Center 1 W Beaver Creek, Avon 1,182 SF Mid-Valley NAI Mountain Commercial 217 Annual Report Page 12 of 13

13 245 Chapel Place Unit C21 Avon, Colorado naimountain.com