>> Deliveries Mute Demand While Rents Rise

Research & Forecast Report GREATER L.A. OFFICE Accelerating success. >> Deliveries Mute Demand While Rents Rise Key Takeaways > The Greater Los Angeles Basin office market posted positive demand of 1,018,100 square feet. > Despite positive absorption, office market vacancy rose by 10 basis points from last quarter to 14.5% due to construction deliveries. Historically, vacancy rose by 30 basis points from 14.2% year-over-year. > Asking rental rates continued to increase at a quarterly average of 2.0%, recording $3.03 per square foot (P) full service gross (FSG), an 8.3% gain over last year. > There is currently 5.1 million square feet of new construction in the Los Angeles Basin office market, three quarters of which is to be delivered in 2018. > The Los Angeles Basin unemployment rate decreased for the fourth consecutive quarter, ending at 3.9%. Going forward, this historic low raises concerns over how much growth the local economy can achieve. Los Angeles County Office Market The Los Angeles County office market recorded 333,500 square feet of net absorption as the total vacancy rate stagnated at 15.3%. Central Los Angeles and the South Bay led positive gains in the county, but the delivery of partially or fully vacant buildings in West Los Angeles negated any substantial gains in vacancy. The market displayed confidence as rental rates increased by $0.04 to $3.23 P FSG. Rents rose in all Los Angeles County submarkets. Construction activity remains concentrated in Downtown and West Los Angeles, which accounts for 77% of construction in the county. Los Angeles County non-farm unemployment in November 2017 dropped to 4.1% from 4.8% last quarter, a 1% decrease yearover-year. Over the past 12 months, Los Angeles County gained 59,700 non-farm jobs for an increase of 1.2%. Market Indicators Relative to prior period Forecast Net Absorption Construction Rental Rate Summary Statistics GLA, Rate Class A Class B All Classes 14.6% 14.9% 14.5% +50-30 +10 +695.5 +175.4 +1,018.1 Change from Q3 17 (Basis Points) Net Absorption* Construction Completions* 1,931.8.0 32.0 1,963.8 Under Construction* 2,631.8 2,423.7 5,055.5 Class A Class B All Classes $3.64 $2.39 $3.03 +$0.04 +$0.02 +$0.05 6.6% 8.6% 8.2% *, Thousands Asking Rents GLA, Average Asking Rent (FSG) Change from Q3 17 ($) Y.O.Y. Change (%) GLA Labor Force GLA, November 2017 Non-farm Prof. & Business Services Financial Activities 12-mo Employment Growth (%) 1.3% 0.9% 1.4% 12-mo Actual Employment Change +97,500 +9,600 +5,500

Central Los Angeles The Central Los Angeles market finished 2017 with momentum. decreased by 180 basis points from the same period last year and absorption eclipsed 650,000 square feet for the year. There is currently 360,000 square feet of office product under construction, along with 138,500 square feet of additional proposed product scheduled to break ground in 2018. Strong leasing activity for the quarter will help keep demand steady into early 2018. Rents continued their ascent after a momentary slide last quarter, finishing at $2.76 P FSG. Overall rates were up 4.2% year-over-year. Downtown Los Angeles The Downtown Los Angeles office market recorded positive absorption of 104,100 square feet, making 2017 s total essentially flat, having given back -24,400 square feet. Likewise, vacancy decreased by 30 basis-points on the strength of move-ins within the Financial District and Greater Downtown/ Arts District. Asking rents rose incrementally from last quarter but still grew by 4.4% year-over-year. With Class A rents slightly retreating in the CBD, growth was mainly attributed to Class B rents. The introduction of new inventory to the market pushed asking rental rates in the earlier part of the year, but there are signs that landlords have started to rein in the upper limits of those rates. West Los Angeles in the West Los Angeles market rose by 50 basis points as the delivery of One Culver to the market outweighed demand of 34,800 square feet. Rents continued their ascent, rising by $0.06 to $4.61 P FSG. Leasing activity slowed, recording 896,700 square feet, the first quarter in the past fifteen to not exceed one million. The West Los Angeles market is poised to add just under 1.7 million square feet in the next two years as construction and creative conversions deliver. Historical v. Rents GLA Office Market Q4 13-17 $ P PER MONTH (WEIGHTED) $3.10 $3.00 $2.90 $2.80 $2.70 $2.60 $2.50 $2.40 $2.30 $2.20 $2.10 RENTS VACANCY 4Q13 4Q14 4Q15 4Q16 4Q17 20.0% 18.0% 16.0% 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% Net Absorption by Submarket GLA Office Market Q4 17 700,000 600,000 500,000 400,000 300,000 200,000 100,000 0 (100,000) (49,000) TRI CITIES 34,800 WEST LOS ANGELES 7,500 SAN GABRIEL VALLEY 104,100 DOWNTOWN LOS ANGELES (49,000) V & VENTURA CO 150,600 CENTRAL LOS ANGELES 134,500 99,000 INLAND EMPIRE SOUTH BAY 585,600 Historical Leasing Activity GLA Office Market Q4 13-17 ORANGE COUNTY V & Ventura County The San Fernando Valley and Ventura County office market recorded negative net absorption at 49,000 square feet, and vacancy declined by 20 basis points in the fourth quarter. Asking rental rates recorded $2.33 P FSG, a 4.3% yearover-year increase. With only one new project under construction on the horizon, the market will remain supply-constrained and absorption is expected to remain flat to slightly positive. Given these market conditions, San Fernando Valley and Ventura County office market trends are expected to move at a slow rate. 2 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 4Q13 4Q14 4Q15 4Q16 4Q17

South Bay The South Bay market saw rental rates continue to rebound with positive albeit minimal growth for the sixteenth time in seventeen quarters. made a modest drop from 15.6% to 15.2%. While there were no construction deliveries, three projects totaling 349,100 square feet are expected to deliver in early 2018. Leasing activity held relatively steady from last quarter, recording 583,900 square feet. Investment activity of $1.1 billion more than doubled that of any quarter in the past eight years and highlighted the potential the South Bay market has presented to investors as of late. San Gabriel Valley The San Gabriel Valley office market recorded 102,900 square feet of leasing activity, marking at least 100,000 square feet of velocity for three out of four quarters in 2017. rose, despite postive absorption, by 20 basis points to 13.2% due to new deliveries in the West San Gabriel Valley. The overall average asking rent rose by $0.02 to $2.23 per square foot (P) full service gross (FSG). Historical Net Absorption & Construction Completions GLA Office Market Q4 13-17 2,500,000 2,000,000 1,500,000 1,000,000 500,000 0 (500,000) (1,000,000) NET ABSORPTION 4Q13 4Q14 4Q15 4Q16 4Q17 Investment Trends Chart GLA Office Market 11-17 CONSTRUCTION COMPLETIONS Tri-Cities The market finished 2017 in a similar state to where it started. Demand was negative 49,000 square feet for the second time in four quarters, and negative 51,600 square feet for the year. rose accordingly due to lack of demand in Burbank, Glendale and Pasadena. Glendale will see vacancy increase substantially by mid-2018 as Nestle USA completes its relocation. Because of this relocation and others in Pasadena, sublease inventory will increase as tenants begin to vacate. Rents have continued to rise on the strength of Class A properties. Investment activity was concentrated in Pasadena and Glendale. Glendale saw its 12th Class A property trade in the last three years. $400.00 $350.00 $300.00 $250.00 $200.00 $150.00 $100.00 $50.00 $0.00 2011 2012 2013 2014 2015 2016 2017 $/P Cap Rate 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% Orange County Leasing activity for the Orange County office market increased momentum during the fourth quarter. Construction activity continued to be a key trend. The Boardwalk in the Airport Area and Five Point Gateway Campus in South County were delivered, adding 1.6 million square feet to the inventory base. Of the 1.6 million square feet of new office inventory, 54% has been pre-leased. Market fundamentals will remain strong as newly built inventory delivers to the market, giving tenants the opportunity to explore new space options. As tenants seek right-size space options and new construction delivers to the market, absorption gains are expected to be limited in coming quarters. Unemployment Rate U.S., CA & LA November 2017 4.8% 4.6% 4.6% 4.4% 4.2% 4.1% 4.0% 3.9% 3.8% 3.6% 3.4% United States California Los Angeles Basin 3

Inland Empire The total vacancy rate for the Inland Empire office market decreased 50 basis points from 13.9% last quarter to 13.4%. The decrease in vacancy stemmed from the San Bernardino submarket, which recorded a decrease of 240 basis points. The fourth quarter closed with positive absorption recording at 99,000 square feet. Leasing activity grew by 43% compared to last quarter, recording 412,800 square feet for the quarter. Submarket Map The weighted average asking rental rate increased during fourth quarter to $1.78 P FSG. As a historical perspective, one year ago the asking rental rate recorded at $1.72 P FSG. Market Description The Los Angeles Basin office market is comprised of 309.1 million square feet of multi-tenant office space in buildings 25,000 square feet or larger. It ranks as the third largest office market in the nation, following New York City and the Greater Washington DC area. Most of its space, 55%, was built in or after 1985, making it a relatively young market. It is also relatively decentralized, with only 11% of the space located within Downtown Los Angeles and 89% dispersed throughout the region. 40% of the space is in low-rise buildings, followed by 31% in mid-rise buildings and 29% in high-rise structures. RECENT TRANSACTIONS & MAJOR DEVELOPMENTS Greater Los Angeles County Office Market SALES ACTIVITY PROPERTY ADDRESS SIZE SALE PRICE PRICE P BUYER SELLER Pacific Corporate Towers, El Segundo (3 Bldgs.) 1,588,100 $605,454,000 $381 P Starwood Capital Group DivcoWest 4000 MacArthur Blvd, Newport Beach (2 Bldgs) 376,200 $176,500,000 $469 P Goldman Sachs & Co. Hines 9401 Wilshire Blvd., Beverly Hills 146300 $143,600,000 $982 P Douglas Emmett, Inc. MGM Management Company 801 N. Brand Blvd./700 N. Central Ave., Glendale 414,000 $122,000,000 $294 P CBRE Global Investors The Blackstone Group LP Campus 2100, El Segundo (3 Bldgs.) 203,900 $117,100,000 $566 P Deutsche Asset & Wealth Marshall Property & Dev. LEASING ACTIVITY PROPERTY ADDRESS LEASED LEASE TYPE BLDG CLASS LESSEE LESSOR 4729 Alla Rd., Marina Dey Rey 131,100 Direct B Tesla Pacific Properties Group 725 S. Figueroa St., Los Angeles 120,800 Renewal A Ernst & Young Brookfield 20770 Madrona Ave., Torrance 102,300 Renewal A American Honda Finance Corp Continental Development 8531 Fallbrook Ave, West Hills 98,400 Direct - New A Pharmavite Brookfield 5500 W. Jefferson Blvd., Culver City 85,000 Direct A Apple Hackman Capital Partners MAJOR DEVELOPMENTS PROJECT DEVELOPER SIZE SUBMARKET STATUS ESTIMATED COMPLETION 801 S Broadway, Los Angeles Waterbridge Capital 500,000 Greater Under Construction Q1 2018 757 S. Alameda St., Los Angeles Atlas Capital Group, 425,100 Greater Under Construction Q1 2019 Flight @ Tustin Legacy, Tustin Lincoln Property 417,300 Central County Under Construction 3Q 2018 4

OFFICE OVERVIEW Greater Los Angeles County 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 BUILDING CLASS A 888 165,609,600 13.4% 1.2% 14.6% 14.1% 3,179,300 13,404,300 695,500 1,430,700 1,931,800 2,631,800 $3.64 B 1,857 126,422,400 14.3% 0.6% 14.9% 15.2% 2,165,500 9,031,900 175,400 1,363,300 32,000 2,423,700 $2.39 C 391 17,082,400 11.8% 0.5% 12.3% 13.5% 243,100 1,097,100 147,200 127,000 0 0 $1.87 CENTRAL LOS ANGELES Subtotal 116 14,354,700 17.0% 0.3% 17.3% 18.5% 344,000 891,900 150,600 659,900 0 360,000 $2.76 DOWNTOWN LOS ANGELES Subtotal 78 33,567,100 19.3% 0.7% 20.0% 20.3% 512,000 2,605,200 104,100 (24,400) 0 1,389,300 $3.35 WEST LOS ANGELES Subtotal 441 57,416,700 12.4% 1.1% 13.6% 13.1% 896,700 4,656,800 34,800 140,300 363,000 1,657,300 $4.61 TRI CITIES Subtotal 189 22,967,500 11.7% 1.5% 13.2% 13.0% 253,600 1,416,300 (49,000) (51,600) 0 0 $3.06 SAN FERNANDO VALLEY & VENTURA COUNTY Subtotal 428 33,918,700 13.6% 0.5% 14.1% 13.9% 638,900 2,731,800 (49,000) 196,400 0 218,300 $2.33 SOUTH BAY Subtotal 279 30,960,600 14.6% 1.4% 16.0% 16.5% 552,900 1,939,900 134,500 660,400 0 339,100 $2.44 SAN GABRIEL VALLEY Subtotal 158 10,279,000 12.7% 0.5% 13.2% 13.0% 102,900 640,800 7,500 155,200 32,000 0 $2.23 LOS ANGELES COUNTY SUBTOTAL 1,689 203,464,300 14.4% 0.9% 15.3% 15.3% 3,301,000 14,882,700 333,500 1,736,200 395,000 3,964,000 $3.23 ORANGE COUNTY SUBTOTAL 1,023 85,129,000 12.1% 0.9% 13.0% 12.5% 1,874,100 7,407,200 585,600 951,500 1,568,800 1,066,500 $2.78 INLAND EMPIRE SUBTOTAL 424 20,492,400 12.9% 0.5% 13.4% 13.9% 412,800 1,243,400 99,000 236,500 0 25,000 $1.78 GREATER LOS ANGELES BASIN TOTAL 3,136 309,085,700 13.7% 0.9% 14.5% 14.4% 5,587,900 23,533,300 1,018,100 2,924,200 1,963,800 5,055,500 $3.03 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

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. Includes 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 and an excellent location, and commands the highest rents in the market. Class B Space: Highly functional, attractive space, but less prestigious than Class A Space, and commanding lower rental rates. Class C Space: Functional, competitive space, but with a lower level of finish and/or a less desirable location than with Class B Space, and commanding lower rental rates. Low-Rise: Buildings with a total of 4 floors or less. Mid-Rise: Buildings with a total of 5 to 13 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, that is 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 (includes the impact of change in vacant space available for sublease). Leasing Activity: Square feet leased from all known transactions completed during the quarter. Excludes lease renewals. Weighted Average Asking Rental Rates: Weighted by the total square feet available for direct lease. Data is based on Full Service Gross rents, and includes all costs associated with occupying the space, including taxes, insurance, maintenance, janitorial service and utilities. Reported on a monthly, per basis. 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 www.colliers.com/greaterlosangeles. 396 offices in 68 countries on 6 continents United States: 153 Canada: 29 Latin America: 24 Asia Pacific: 79 EMEA: 111 UNITED STATES: Greater Los Angeles Office License No. 01908231 865 S Figueroa St, Suite 3500 Los Angeles, CA 90017 HANS MUMPER Executive Managing Director. GLA CAITLIN MATTESON Research Director Research Services > $2.6 billion in annual revenue > 2.0 billion square feet under management > Over 15,000 professionals TEL: +1 213 627 1214 FAX: +1 213 327 3200 ROBERT CAUDILL Regional Director/O.C. 6