Las Vegas Research & Forecast Report Q Las Vegas Economic Review

Las Vegas Research & Forecast Report Q2 2015 Las Vegas Economic Review

Glossary Industrial Definitions Incubator: Multi-tenant buildings without dock-high loading doors that have a parking ratio lower than 3.5/1,000 square feet and bay sizes lower than 3,500 square feet. Light Distribution: Multi- or single-tenant buildings that include dock-high loading doors and have bay sizes of less than 15,000 square feet. Light Industrial: Flex: Warehouse/Distribution: Multi- or single-tenant buildings without dock-high loading doors that have a parking ratio lower than 3.5/1,000 square feet and, in the case of multi-tenant buildings, bay sizes of at least 3,500 square feet. Multi- or single-tenant buildings without dock-high loading doors with parking ratios in excess of 3.5/1,000 square feet. Multi- or single-tenant buildings that include dock-high loading doors and have bay sizes of at least 15,000 square feet. Office Definitions Class A Office: Class B Office: Class C Office: Buildings with steel frame construction, high end exterior finish, distinctive lobbies featuring upgraded finishes, amenities including on-site security, state-of-the-art communications and data infrastructure and covered parking. Class A buildings are usually multi-story. Buildings with steel frame, reinforced concrete or concrete tilt-up construction. Class B buildings contain common bathrooms and hallways, and their lobbies may have granite and hardwood detailing. Class B buildings are often multi-story. Buildings of wood frame construction. Class C buildings are often garden-style and are built around courtyards. Retail Definitions Community Center: Neighborhood Center: Power Center: Strip Center: Retail centers anchored by supermarkets, drug stores and discount department stores. Tenants include offprice retailers selling apparel, home improvements/furnishings, toys, electronics or sporting goods. Retail centers anchored by supermarkets and drug stores. Neighborhood centers are intended for convenience shopping for day-to-day needs of consumers. Retail centers dominated by several large anchors including discount department stores, off-price stores, warehouse clubs or category killers. Power centers generally inline space. Unanchored retail centers that are 20,000 SF in size or larger. Multifamily Definitions Class A Multifamily: Class B/C Multifamily: Buildings constructed in the last 5 years Buildings constructed more than 5 years ago General Definitions Vacant SF: Sublease SF: Net Absorption: Space in a building that is unoccupied and offered for lease by the owner of the company. Space in a building that is offered for sublease by the primary tenant. This space may or may not be occupied. Difference in occupied square footage from one period to another. 2 Las Vegas Research & Forecast Report Q2 2015 Economic Review Colliers International

Table of Contents Economic Review Optimism, neither Cautious nor Wild After a strong 2014, and a good start to 2015, we find it surprising that there is not more optimism about Southern Nevada s economy. Industrial Review Industrial Grows Stronger With warehouse/distribution product leading the way, Southern Nevada s industrial market picked up steam in the second quarter of 2015. Office Review Building Character They say that adversity builds character. If that is true, then Southern Nevada s office market has been building character for years now. Retail Review Retail Back on Track Southern Nevada s retail market continued to bounce back from its very weak showing in the fourth quarter of 2015. Multifamily Industrial Grows Stronger With warehouse/distribution product leading the way, Southern Nevada s industrial market picked up steam in the second quarter of 2015. Medical Office Industrial Grows Stronger With warehouse/distribution product leading the way, Southern Nevada s industrial market picked up steam in the second quarter of 2015. Hospitality Industrial Grows Stronger With warehouse/distribution product leading the way, Southern Nevada s industrial market picked up steam in the second quarter of 2015. Land Industrial Grows Stronger With warehouse/distribution product leading the way, Southern Nevada s industrial market picked up steam in the second quarter of 2015. 4 8 14 20 25 30 35 40 This report and other research materials may be found on our website at www.colliers.com/lasvegas. This quarterly report is a research document of Colliers International Las Vegas. Questions related to information herein should be directed to the Research Department at +1 702 836 3781. Information contained herein has been obtained from sources deemed reliable and no representation is made as to the accuracy thereof. 2015 Colliers International 3 Las Vegas Research & Forecast Report Q2 2015 Economic Review Colliers International

Research & Forecast Report LAS VEGAS ECONOMIC REVIEW Q2 2015 Optimism, neither Cautious nor Wild > > The hospitality sector continues to be strong > > The long-suffering construction sector is beginning to grow > > The economic prognosis for Southern Nevada is good After a strong 2014, and a good start to 2015, we find it surprising that there is not more optimism about Southern Nevada s economy. Granted, the recovery has been slow and painful, and is not over yet, and granted that there is mild pessimism in the air about the U.S. and world economies. That being said, the local economy is doing well, and is likely to continue doing well through 2015 at a minimum. Clark County Economic Data Current Year Ago Jobs (1000s) (May 2015) 909.3 876.6 Recovery Index (Year -Over-Year) (Year-Over-Year) Visitor Volume YTD (April 2015 13.7 MM 13.7 MM Gaming Revenue YTD (April 2015 $3.24 BB $3.19 BB 140.0 120.0 Jan 2005 = 100 Taxable Sales YTD (March 2015) $9.17 BB $8.64 BB 100.0 Commercial Occupancy (Q2) 90.0% 87.9% 80.0 60.0 Source: The Center for Business & Economic Research, UNLV; Colliers International 40.0 20.0 0.0 New Home Sales Commercial Occupancy Gaming Revenue Visitor Volume In-Migration Employment Taxable Sales Port Traffic LA Recovery Index Apr 2014 Apr 2015

Unemployment in the Las Vegas-Paradise MSA stood at 7.1 percent as of May 2015, down from 8.2 percent in May 2014, and unchanged from April 2015. Unemployment in Southern Nevada is still higher than in the United States, which stood at 5.5 percent in May 2014. Unemployment in Southern Nevada averaged 7.8 percent in 2014, and so far in 2015 has averaged 7.2 percent, a noteworthy improvement. Since January 2015, total employment in Southern Nevada increased by 22,000 jobs, almost double the number of jobs added between January and May 2014. One a year-over-year basis, the majority of new jobs in May 2015 have been in the leisure and hospitality (+14,400 jobs), construction (+8,100 jobs), health care and social assistance (+4,000 jobs) and trade, transportation and utilities (+3,600 jobs). Five years of recovery have brought the local economy back to form, with strong employment growth in the leisure and hospitality and construction sectors. It is worth noting, though, that despite recent improvements, construction employment in Southern Nevada remains 60,900 jobs below its peak in 2006. Key sectors showing a loss of jobs year-over-year were manufacturing (-200 jobs), government (-600 jobs) and financial activities (-1,400 jobs). Employment Growth (May 2014 - May 2015) Leisure/Hospitality Construction Health Care/Social Assistance Trade/Transportation/Utilities Professional/Business Services Other Services Information Financial Activities Natural Resources Manufacturing Government Education -2:: -6:: -1,2:: Employment Growth (May 2:14 - May 2:15) 14,4:: 8,1:: 4,::: 3,6:: 2,8:: 1,9:: 1,2:: 3:: 1:: -2,::: : 2,::: 4,::: 6,::: 8,::: 1:,::: 12,::: 14,::: 16,::: Southern Nevada Commercial Real Estate Recovery Index 12:.: Colliers International Southern Nevada Commercial Real Estate Recovery Index (Jan 2::5 = 1::) According to data provided by the Nevada Department of Motor Vehicles, the number of out-of-state driver s licenses turned in in April 2015 was 4,983. This is lower than in April 2014, when they reported 5,387 out-of-state licenses turned in, and suggests that population growth is once again slowing down in Clark County. Since Las Vegas s birth in 1905, population growth has been a major driver of economic growth. In the past, population growth was driven by the Valley s low unemployment rate and retirees looking to escape the dramatic weather and high cost of living elsewhere in the United States. Improved job growth in Southern Nevada might improve in-migration, but retirees who took a financial beating during the Great Recession and Americans who remain underwater in the mortgages might be unable to make the move to Southern Nevada. Forecasts by UNLV s Center for Business and Economic Research suggest that population growth will be much more moderate in the years to come than it has been in the past, and real estate developers should take note of this change. 11:.: 1::.: 9:.: 8:.: 7:.: 6:.: The Old Growth Rate The New Growth Rate Dec 2:14 Jun 2:14 Dec 2:13 Jun 2:13 Dec 2:12 Jun 2:12 Dec 2:11 Jun 2:11 Dec 2:1: Jun 2:1: Dec 2::9 Jun 2::9 Dec 2::8 Jun 2::8 Dec 2::7 Jun 2::7 Dec 2::6 Jun 2::6 Dec 2::5 Jun 2::5 Dec 2::4 Jun 2::4 Dec 2::3 Jun 2::3 Dec 2::2 Jun 2::2 Dec 2::1 Jun 2::1 Dec 2::: Jun 2::: Dec 1999 Jun 1999 Dec 1998 Jun 1998 Dec 1997 Jun 1997 Dec 1996 Jun 1996 In terms of the pillars of the local economy, construction and leisure/hospitality, the former has started showing signs of life with increased construction in commercial and multifamily projects, while the latter continues to recover nicely. Construction of Genting Group s new resort, ResortsWorld Las Vegas, looms on the horizon, and speculative industrial construction has once again returned to Southern Nevada. These projects may not be enough to reverse the massive construction job losses experienced by the Valley during the Great Recession, but they do help to mitigate them, and they are very necessary if the Valley is ever to return to the growth rates it enjoyed pre-great Recession. 5 Las Vegas Research & Forecast Report Q2 2015 Economic Review Colliers International

Visitor volume in Las Vegas has recovered from the lows experienced during the Great Recession. An average of 3.47 million people visited Southern Nevada per month in 2014. This is higher than in 2013, when 3.33 million people per month visited Southern Nevada, and the highest monthly average recorded since 3.6 million people per month visited in 2004. In 2015, an average of 3.54 million people visited Las Vegas per month. Gaming revenue has shown some improvement in 2015. Long lagging behind visitor volume, gaming revenue for the first four months of 2015 stood at $3.24 billion, compared to $3.19 billion in the first four months of 2014. Unfortunately, gaming revenue remains well below the heights it hit in 2007, and given the diversion of tourist dollars from gaming into dining, entertainment and other activities, it may take a decade to once again reach those heights. Fortunately, resort operators and the local economy do not necessarily have to care where tourist spend their money, so long as they spend it. Visitor spending hit $34.5 billion in 2007, and in 2014 was $35.8 billion, a new record. Commercial real estate investment sales volume in 2014 reached $1.32 billion in 277 sales totaling just over 9 million square feet. In the first five months of 2015, sales volume was $411 million in 74 sales totaling just over 3 million square feet. This suggests slightly softer investment activity in 2015 versus 2014, and in fact sales volume at mid-year is about 24 percent lower now than last year. Cap rates averaged 7.6 percent in 2015, year-to-date, compared to 7.2 percent in the first half of 2014. Recovery Index After the normal winter snooze, the local economy showed signs of life in the second quarter of 2015. The local economic cycle was a bit bonkers in 2014, with a weak Spring and Summer, a resurgence in Fall and an equally sharp slow down in winter. Usually, Spring and Summer are stronger and Fall is weaker. So far, 2015 is duplicating 2014 s performance. April 2015 showed growth in the Recovery Index, but weak growth the weakest in five years. Early numbers do not suggest May will be particularly stronger. On a year-over-year basis, the Southern Nevada CRE Recovery Index is a mixed bag. New home sales, while generally weak, were up in April 2015 compared to April 2014. Commercial occupancy, visitor volume, employment and taxable sales were also up, with the most impressive growth being in taxable sales and employment (just where you would want them to be). Gaming revenue was down in April 2015 compared to April 2014, though it has generally been up in 2015 compared to 2014. Out-of-state drivers licenses and port traffic in Los Angeles were also down on a year-over-year basis in April. The index is now at the level it was in 2004, which indicates a near return to normalcy. The prognosis looks pretty good for Southern Nevada. The economy is growing, and has been growing for the past five years. The economy is also expected to keep growing in the near term, though obviously unforseen problems can play havoc with forecasts, and the economy faces potential headwinds from the national and global economies. If everyone behaves themselves, though, 2015 should probably show growth on par with 2014. 6 Las Vegas Research & Forecast Report Q2 2015 Economic Review Colliers International

Economic Statistics Las Vegas Second Quarter 2015 TYPE APRIL 2015 MARCH 2015 APRIL 2014 2015 AVERAGE 2014 AVERAGE MONTHLY GROWTH ANNUAL GROWTH 2014 TO 2015 GROWTH (AVERAGE) EMPLOYMENT DATA U.S. Employment 141,367,000 141,144,000 138,385,000 141,091,000 139,000,000 0.2% 2.2% 1.5% U.S. Unemployment Rate 5.4% 5.5% 6.2% 5.5% 6.2% -1.8% -12.9% -11.3% Las Vegas MSA 907,000 892,500 886,200 896,200 874,500 1.6% 2.3% 2.5% Employment Las Vegas MSA 7.1% 7.2% 8.0% 7.3% 7.8% -1.4% -11.3% -6.4% Unemployment Rate Las Vegas MSA 51,200 48,500 43,900 49,200 42,700 5.6% 16.6% 15.2% Construction Employment Las Vegas MSA Hospitality Employment 287,200 281,000 269,800 282,600 271,400 2.2% 6.4% 4.1% HOUSING/CONSTRUCTION DATA New Home Sales 449 543 428 455 496-17.3% 4.9% -8.3% New Home Median Price $305,704 $312,204 $286,506 $306,990 $290,837-2.1% 6.7% 5.6% Existing Home Sales 2,753 2,707 2,615 2,394 2,048 1.7% 5.3% 16.9% Existing Home Median Price $212,568 $205,000 $192,000 $206,764 $197,108 3.7% 10.7% 4.9% Residential Permits 786 893 905 845 812-12.0% -13.1% 4.1% Residential Permit Value $94,993,403 $103,107,547 $92,335,866 $93,438,307 $89,327,349-7.9% 2.9% 4.6% Commercial Permits 29 25 31 27 25 16.0% -6.5% 8.0% Commercial Permit Value $58,401,961 $32,384,944 $20,236,046 $63,559,578 $23,421,645 80.3% 188.6% 171.4% HOSPITALITY DATA Visitor Volume 3,816,200 3,921,478 3,766,975 3,696,279 3,695,517-2.7% 1.3% 0.0% Gaming Revenue $783,239,000 $826,410,000 $742,704,000 $811,169,519 $796,166,718-5.2% 5.5% 1.9% Room Inventory 151,236 150,255 149,159 150,573 150,126 0.7% 1.4% 0.3% Hotel/Motel Occupancy 88.8% 88.6% 89.8% 86.0% 86.8% 0.2% -1.1% -0.9% Passengers 3,769,869 3,851,199 3,609,875 3,519,227 3,570,792-2.1% 4.4% -1.4% (McCarran Int'l Airport) Convention Attendance 501,392 551,793 395,462 571,447 427,944-9.1% 26.8% 33.5% The information contained in this report was provided by sources deemed to be reliable, however, no guarantee is made as to the accuracy or reliability. As new, corrected or updated information is obtained, it is incorporated into both current and historical data, which may invalidate comparison to previously issued reports. 7 Las Vegas Research & Forecast Report Q2 2015 Economic Review Colliers International

Research & Forecast Report LAS VEGAS INDUSTRIAL Q2 2015 Industrial Grows Stronger > > The industrial market posted almost 2 million square feet of net absorption > > Most of this absorption is in warehouse/distribution projects > > High demand over the past two years is stimulating new speculative construction With warehouse/distribution product leading the way, Southern Nevada s industrial market picked up steam in the second quarter of 2015. Net absorption in the second quarter was 1.86 million square feet, the highest quarterly net absorption in Southern Nevada since the first quarter of 2007, when Southern Nevada was still experiencing the boom in demand for industrial product. Approximately 57 percent of this net absorption was in warehouse/ distribution properties. A total of 788,703 square feet of industrial product was completed in the second quarter of 2015. Industrial vacancy is now at 6.6 percent, which we would consider normal vacancy. Asking rental rates remained stable at $0.57 per square foot (psf) on a triple net (NNN) basis. Historical Vacancy Rates and Asking Lease Rates Market Indicators Relative to prior period Market Q2 2015 Market Q3 2015* VACANCY NET ABSORPTION COMPLETIONS RENTAL RATE *Projected Summary Statistics Q2 2015 Las Vegas Market Q2-2015 Q1-2015 Q2-2014 Vacancy Rate 6.6% 7.7% 9.5% 14.0% $0.58 Asking Rent (PSF, NNN) $0.57 $0.57 $0.54 13.0% $0.56 Net Absorption (SF) 1,863,470 872,488 1,484,079 12.0% 11.0% $0.54 $0.52 New Completions (SF) 788,703 0 219,490 10.0% 9.0% 8.0% 7.0% $0.50 $0.48 $0.46 $0.44 Overall Asking Rents Per Square Foot Previous Quarter Current Quarter Warehouse/Distribution $0.48 $0.49 2 Q 2013 3 Q 2013 4 Q 2013 1 Q 2014 2 Q 2014 3 Q 2014 4 Q 2014 1 Q 2015 2 Q 2015 Light Distribution $0.50 $0.51 Vacancy Asking Rental Rate Light Industrial $0.56 $0.54 Incubator $0.66 $0.67 Flex $0.82 $0.80

Southern Nevada s industrial job market improved in April 2015 (the latest month of data available) compared with April 2014, adding 12,000 jobs in the past twelve months, the vast majority of them in the construction sector. If this sounds to you like déjà vu all over again, you are not alone. Once again, the construction sector is flexing its muscles in Southern Nevada, spurred on by construction and renovation on the Las Vegas Strip, on residential projects, both single-family and multi-family, and new industrial and retail projects. Unemployment in the Las Vegas-Paradise MSA stood at 7.1 percent as of April 2015, down from 8.0 percent in April 2014. Since April 2014, total employment in Southern Nevada has increased by 34,600 jobs. Historical Net Absorption vs. Completions 2,500,000 2,000,000 1,500,000 1,000,000 500,000 At mid-year 2015, Southern Nevada has added 788,703 square feet to its industrial inventory, and is poised to add another 1.7 million square feet to industrial inventory by the end of 2015. Currently, Southern Nevada has 7.1 million square feet of space under construction or planned to begin construction in the next twelve months. Approximately 1.5 million square feet of this forward supply is in build-to-suit projects, and virtually all of this forward supply space is in warehouse/distribution projects. Of the 1.7 million square feet that we believe will be completed in 2015, 1.2 million square feet is in build-to-suit projects. This should continue to bolster net absorption in 2015, and should stimulate additional construction in 2016. 0 2 Q 2013 3 Q 2013 Net Absorption 4 Q 2013 1 Q 2014 Occupancy vs. Industrial Employment 155,000 150,000 145,000 140,000 2 Q 2014 3 Q 2014 Completions 4 Q 2014 1 Q 2015 2 Q 2015 94.0% 93.0% 92.0% 91.0% For the tenth consecutive quarter, Southern Nevada experienced positive net absorption in its industrial market. Net absorption has now been positive in twelve of the last thirteen quarters. Net absorption at mid-year 2015 was 2.74 million square, more than the 2.18 million square feet absorbed by mid-year 2014, and a sign that the industrial market may be picking up steam. These figures are comparable with the weakest years of the 2004 to 2007 boom; mid-year net absorption was approximately 2.7 million square feet in both 2004 and 2007. In other words, current demand for industrial is strong, but does not appear to be overheated. Net absorption was positive in all of the Valley s submarkets in the second quarter of 2015. As usual, the highest net absorption was in the North Las Vegas submarket, with 610,669 square feet of net absorption. The Southwest submarket was second with 562,807 square feet of net absorption. Gross absorption at mid-year 2015 totaled 7.3 million square feet, higher than the 6.3 million square feet of gross absorption at mid-year 2014. Industrial vacancy has been on the decline since the first quarter of 2012, dropping from a high of 14.0 percent then to the current rate of 6.6 percent. This is the lowest industrial vacancy recorded since the first quarter of 2008, when vacancy was 6.4 percent. 135,000 130,000 125,000 120,000 2 Q 2013 3 Q 2013 4 Q 2013 Industrial Jobs 1 Q 2014 2 Q 2014 3 Q 2014 4 Q 2014 1 Q 2015 Occupancy Rate APR 2015 APR 2014 CHANGE Construction 51,200 42,300 +8,900 Manufacturing 21,000 21,200-200 Transportation & Warehousing 39,100 36,900 +2,200 Wholesale 21,700 20,600 +1,100 Source: Nevada Department of Employment, Training and Rehabilitation 2 Q 2015 90.0% 89.0% 88.0% 87.0% The lowest industrial vacancy rate on a submarket basis belonged to the Henderson submarket at 5.4 percent. Among product types, warehouse/distribution product had the lowest vacancy rate at 3.1 percent. The lowest overall vacancy rates were in warehouse/ distribution projects in Henderson at 0.5 percent vacancy. There is 2 Las Vegas Research & Forecast Report Q2 2015 Industrial Colliers International

now almost 1 million square feet of warehouse/distribution product planned for the Henderson submarket, though none of it is yet under construction. The highest vacancy rate in the Valley was in East Las Vegas flex space, at 42.1 percent. The industries most active in occupying industrial space over the past four quarters were involved in business and personal services, manufacturing, wholesale and retail. Local companies took about 43 percent of the leased square footage we tracked over this period. Companies headquartered in the Southwest U.S. took 14.2 percent of the leased space we tracked over the past four quarters, while 13.9 percent was taken by Northeastern companies and 7.5 percent by companies from the Midwestern States. The weighted average asking lease rate for industrial space remained at $0.57 psf NNN. This quarter s asking lease rate was $0.03 higher than in the second quarter of 2014. If adjusted for inflation, the weighted average asking lease rate would be $0.43 psf NNN, also a $0.03 increase from one year ago. The current asking rate adjusted for inflation is $0.09 lower than it was during the last economic recovery in 2004. Units leased in the second quarter of 2015 had effective lease rates that averaged 111 percent of asking rates, up from 102.7 percent posted in the first quarter of 2015. Expect asking rates to continue to climb through 2015, and, as they climb, new industrial developments to become more viable. Sales volume was down slightly in 2014 compared to 2013, but the average sales price increased dramatically. This might indicate that 2013 was the end of the fire sale period in Southern Nevada s industrial recovery. At mid-year 2015, industrial investment sales volume was $98.8 million in 17 sales totaling 1.1 million square feet. The average sales price in 2015 was $88.53 psf, and the average cap rate was 7.9 percent. Southern Nevada s industrial market had 1.3 million square feet of product available for sale on an investment basis, with an average asking price of $115.49 psf, and an average cap rate of 6.9 percent. This compression of cap rates was expected by some industrial developers, and further compression will likely occur. Foreign investment groups are now focused on industrial real estate, as they believe stocks are too risky and multifamily investments have run their course for the time being. Warehouse/distribution space continued to dominate Southern Nevada s industrial market at mid-year 2015. This might be due to a lack of viable warehouse/distribution space on the market, i.e. 3.2 percent vacancy. Responding to this lack of available product, developers now have 5.4 million square feet of warehouse/ distribution product on the drawing boards for Southern Nevada and 535,260 square feet of true warehouse/distribution product under construction. Another 1.2 million square feet of warehouse/ distribution space is under construction in the Southwest submarket, but these are build-to-suits for Switch. While these properties are technically warehouse/distribution, they will be used Industrial Development Pipeline Project Type Submarket Size Pre-Leasing Completion Under Construction 1,732,000 SF Switch SuperNAP Warehouse/Distribution Southwest 575,000 SF BTS Q3-2015 LogistiCenter Cheyenne B Warehouse/Distribution North Las Vegas 382,000 SF 0% Q4-2015 Ainsworth BTS Warehouse/Distribution Southwest 272,000 SF BTS Q4-2015 Swith SuperNAP 10 Warehouse/Distribution Southwest 240,000 SF BTS Q3-2015 Las Vegas Corporate Center 7 Warehouse/Distribution North Las Vegas 153,000 SF 0% Q4-2015 Planned Construction 5,407,000 Speedway Commerce Center West Warehouse/Distribution North Las Vegas 737,000 SF 0% 2016 Las Vegas Digital Exchange Campus Warehouse/Distribution Southwest 600,000 SF 0% 2016 Sunrise Distribution Center A Warehouse/Distribution North Las Vegas 510,000 SF 0% 2016 Blue Diamond Business Center Warehouse/Distribution Southwest 495,000 SF 0% 2016 Henderson Freeway Crossings Warehouse/Distribution Henderson 453,000 SF 0% 2016 Lone Mountain Corporate Park Warehouse/Distribution North Las Vegas 447,000 SF 0% Q1-2016 Jones Corporate Park Warehouse/Distribution Southwest 416,000 SF 0% 2015 Sunrise Distribution Center B Warehouse/Distribution North Las Vegas 273,000 SF 0% 2016 Lone Mountain Corporate Park Warehouse/Distribution North Las Vegas 244,000 SF 0% Q1-2016 Black Mountain Distribution Center Warehouse/Distribution Henderson 241,000 SF 0% 2016 Henderson Commerce Center IV Warehouse/Distribution Henderson 211,000 SF 0% 2016 Blue Diamond Business Center 3 Warehouse/Distribution Southwest 167,000 SF 0% 2016 Durango/215 Warehouse/Distribution Southwest 45,000 SF 0% 2016 Arville/Post Warehouse/Distribution Southwest 40,000 SF 0% 2016 1743 Whitney Mesa Drive Light Industrial Henderson 28,000 SF BTS 2016 UFC BTS Industrial Southwest 25 Acres BTS 2016 Bally Expansion Warehouse/Distribution Southwest 14 Acres BTS 2016 3 Las Vegas Research & Forecast Report Q2 2015 Industrial Colliers International

for data storage. Warehouse/distribution vacancy decreased to 3.2 percent in the second quarter of 2015, while the overall asking rate increased to $0.49 psf NNN. Light distribution s recovery has not been as dramatic as warehouse/distribution s, but it has been steady. Net absorption remained positive in the second quarter of 2015, at 314,318 square feet. Over the course of 2014, vacancy in light distribution projects decreased by about 3.5 points, and in the first quarter of 2015 it decreased by another 1.4 points to 11.3 percent. Light distribution vacancy now stands at 9.6 percent finally below double-digits, but still high. There are no new light distribution projects planned or under construction in Southern Nevada. The overall asking rent for light distribution space remained at $0.51 psf NNN. Light industrial space in Southern Nevada has also shown strength of late. Net absorption stood at 415,935 square feet in the second quarter of 2015, bringing vacancy down to 7.1 percent very close to a healthy vacancy in the 6 percent range. The asking rate for light industrial space decreased by $0.02 to $0.54 psf NNN. From January to April 2015, we recorded 36 light industrial owner/user sales totaling 350,593 square feet with an average sales price of $97.78. Compare this to the first four months of 2014, when 463,308 square feet of light industrial product sold at an average sales price of $79.79 psf. It is possible that higher asking prices for light industrial properties have slowed down the pace of sales. We believe when sales prices reliably hit $150 psf, new development of light industrial buildings will begin. At this point, sales in this price range are still few and far between. As difficult as it was to come to terms with the massive negative net absorption during the early years of the Great Recession, coming to terms with the sudden onset of strong positive net absorption is equally as tough. Many members of the commercial real estate community were taken by surprise by the Great Recession, and now tend to shy away from being too positive. The question before us now is the sustainability of industrial growth. Build-to-suit projects should add another 1.2 million square feet of occupied inventory to the industrial market in 2015. Build-tosuit projects should be less common in 2016, which means new industrial developments will be speculative. Growth during the boom period was primarily driven by population growth. During the boom, an average of 6,752 out-of-state drivers licenses were turned in each month to local DMV s. The average in the year prior to the boom was higher, at 7,491 per month. During the current expansion, an average of 5,387 licenses have been turned in per month lower than during the boom and pre-boom. We think that sustaining growth in Southern Nevada will require not only a flourishing hospitality industry, but also either strong population growth and/or diversification into new industries. By the end of 2015, we believe that Southern Nevada s industrial market will be 1.7 million square feet larger, with an overall vacancy rate range from 6 to 7 percent and asking rates nearing $0.60 psf. Incubator space and flex space continued to show slow improvement. They combined for only 66,524 square feet of net absorption in the second quarter of 2015; incubator space posting negative 13,879 square feet of net absorption. At mid-year, they have combined for 238,560 square feet of net absorption, putting them on track to absorb from 400,000-500,000 square feet by the end of 2015. Asking rental rates remained fairly stable for incubator and flex projects. Incubator vacancy increased to 11.9 percent, while flex vacancy fell to 16.7 percent, lower than the vacancy rate for Class C office product. Blue Diamond Business Center Investment Sales 2011 2012 2013 2014 2015 YTD No. Sales 69 77 58 82 17 Square Feet Sold 3,717,000 2,488,000 5,697,000 3,063,000 1,116,000 Sales Volume $239.5 MM $153.4 MM $352.9 MM $272.7 MM $98.8. MM Average Price/SF $64.43 $61.11 $61.94 $89.03 $88.53 Average Cap Rate* 8.3% 8.3% 7.9% 7.3% 7.9% Average Sale Size (SF) 54,000 32,000 98,000 37,000 66,000 *Cap rate on industrial properties available for sale as investments 4 Las Vegas Research & Forecast Report Q2 2015 Industrial Colliers International

NORTHWEST 95 215 NORTH LAS VEGAS 15 Significant Industrial Sale Activity Northpark II 27,000 SF - $1,991,000 $74.00/SF April 2015 Light Distribution WEST CENTRAL 95 EAST LAS VEGAS Civic Center Corporate Park 16,000 SF - $3,700,000 $231.00/SF May 2015 Light Distribution Bonanza Road 69,000 SF - $5,300,000 $77.00/SF April 2015 Light Industrial SOUTHWEST 215 AIRPORT HENDERSON Sunset Corporate Center 28,000 SF - $2,200,000 $79.00/SF May 2015 Warehouse/Distribution Aabacus Industrial Park 56,000 SF - $3,980,000 $71.00/SF May 2015 Light Industrial Lease Activity Property Name Lease Date Lease Term Size Lease Rate Type Raco Distribution Facility April 2015 36 Months 72,000 SF $0.36 NNN Warehouse/Distribution Knox Warehouse April 2015 60 Months 49,000 SF $0.45 NNN Light Distribution Procyon East Business Center May 2015 120 Months 20,000 SF $0.60 NNN Light Industrial Teco Avenue April 2015 39 Months 7,000 SF $0.86 NNN Flex Brookhollow Business Park April 2015 48 Months 3,000 SF $0.70 NNN Incubator 5 Las Vegas Research & Forecast Report Q2 2015 Industrial Colliers International

Market Comparisons - Las Vegas Industrial Market TYPE TOTAL INVENTORY SF DIRECT VACANT SF DIRECT VACANCY RATE SUBLEASE VACANCY SF TOTAL VACANT SF VACANCY RATE CURRENT QUARTER VACANCY RATE PRIOR QUARTER NET ABSORPTION CURRENT QTR SF NET ABSORPTION YTD SF COMPLETIONS CURRENT QTR SF COMPLETIONS YTD SF UNDER CONSTRUCTION SF PLANNED CONSTRUCTION SF WEIGHTED AVG ASKING RENTAL RATE AIRPORT SUBMARKET WH 5,868,097 308,925 5.3% 44,588 353,513 6.0% 7.0% 265,836 228,993 193,000 193,000 - - $0.68 LD 3,174,513 292,709 9.2% - 292,709 9.2% 10.5% 39,398 99,500 - - - - $0.59 LI 2,991,371 360,390 12.0% 44,300 404,690 13.5% 14.4% 26,184 (1,004) - - - - $0.78 INC 1,630,100 324,633 19.9% - 324,633 19.9% 19.0% (18,561) (17,685) - - - - $0.78 FLX 1,355,901 229,992 17.0% 10,082 240,074 17.7% 18.7% 1,936 47,759 - - - - $0.89 Total 15,019,982 1,516,649 10.1% 98,970 1,615,619 10.8% 11.6% 314,793 357,563 193,000 193,000 - - $0.74 EAST LAS VEGAS SUBMARKET WH 1,122,886 64,512 5.7% - 64,512 5.7% 6.5% 8,200 (46,712) - - - - $0.39 LD 490,568 24,588 5.0% - 24,588 5.0% 11.6% 32,078 32,078 - - - - $0.48 LI 1,798,201 43,198 2.4% 11,494 54,692 3.0% 7.4% 77,952 96,926 - - - - $0.44 INC 281,755 60,618 21.5% - 60,618 21.5% 18.4% (8,736) (6,786) - - - - $0.47 FLX 233,692 98,360 42.1% - 98,360 42.1% 39.5% (5,996) (5,996) - - - - $0.60 Total 3,927,102 291,276 7.4% 11,494 302,770 7.7% 10.3% 103,498 69,510 - - - - $0.49 HENDERSON SUBMARKET WH 6,784,476 35,436 0.5% 15,000 50,436 0.7% 1.0% 29,878 29,878 - - - 905,416 $0.47 LD 1,514,288 127,541 8.4% 16,850 144,391 9.5% 10.2% 26,604 85,084 - - - - $0.56 LI 3,653,552 328,431 9.0% - 328,431 9.0% 9.4% 15,836 28,221 - - - 28,000 $0.55 INC 476,278 51,417 10.8% - 51,417 10.8% 10.7% (438) 12,299 - - - - $0.43 FLX 1,394,446 201,566 14.5% 5,229 206,795 14.8% 18.0% 44,662 57,667 - - - - $0.83 Total 13,823,040 744,391 5.4% 37,079 781,470 5.7% 6.3% 116,542 213,149 - - - 933,416 $0.62 NORTH LAS VEGAS SUBMARKET WH 20,689,770 469,024 2.3% 142,048 611,072 3.0% 2.8% 645,185 1,146,148 464,203 464,203 535,260 2,211,255 $0.36 LD 5,058,239 648,798 12.8% 27,615 676,413 13.4% 13.6% 30,440 58,529 - - - - $0.38 LI 8,683,046 615,464 7.1% 2,560 618,024 7.1% 8.3% 100,489 164,344 - - - - $0.42 INC 611,095 94,403 15.4% 0 94,403 15.4% 18.2% 16,868 15,348 - - - - $0.55 FLX 797,565 161,301 20.2% 0 161,301 20.2% 21.1% 7,184 28,919 - - - - $0.61 Total 35,839,715 1,988,990 5.5% 172,223 2,161,213 6.0% 6.4% 800,166 1,413,288 464,203 464,203 535,260 2,211,255 $0.41 NORTHWEST SUBMARKET WH 224,906-0.0% - - 0.0% 8.4% 19,000 19,000 - - - - $- LD 50,000 3,800 7.6% - 3,800 7.6% 7.6% - - - - - - $0.65 LI 341,430 29,837 8.7% - 29,837 8.7% 16.5% 26,356 29,306 - - - - $0.38 INC 99,427 3,580 3.6% - 3,580 3.6% 6.8% 3,179 3,536 - - - - $0.65 FLX 740,230 172,469 23.3% - 172,469 23.3% 25.4% 15,443 26,288 - - - - $0.85 Total 1,455,993 209,686 14.4% - 209,686 14.4% 18.8% 63,978 78,130 - - - - $0.78 SOUTHWEST SUBMARKET WH 13,708,250 655,881 4.8% - 655,881 4.8% 6.3% 252,591 296,694 79,998 79,998 1,196,525 2,308,780 $0.51 LD 7,199,572 568,287 7.9% 2,532 570,819 7.9% 10.6% 188,996 191,804 - - - - $0.61 LI 10,293,376 658,428 6.4% 53,369 711,797 6.9% 7.6% 123,284 160,149 51,502 51,502 - - $0.44 INC 2,372,501 209,093 8.8% 1,675 210,768 8.9% 7.7% (27,484) (7,809) - - - - $0.67 FLX 1,685,504 178,489 10.6% 13,443 191,932 11.4% 12.9% 25,420 73,874 - - - - $0.88 Total 35,259,203 2,270,178 6.4% 71,019 2,341,197 6.6% 8.0% 562,807 714,712 131,500 131,500 1,196,525 2,308,780 $0.56 WEST CENTRAL SUBMARKET WH 2,445,807 17,283 0.7% - 17,283 0.7% 3.4% 66,500 2,717 - - - - $0.38 LD 756,114 81,482 10.8% 5,600 87,082 11.5% 11.1% (3,198) 9,900 - - - - $0.47 LI 7,804,522 486,260 6.2% 5,000 491,260 6.3% 6.9% 45,834 86,340 - - - - $0.66 INC 2,550,564 209,164 8.2% - 209,164 8.2% 9.0% 21,293 19,025 - - - - $0.66 FLX 161,527 21,240 13.1% 5,572 26,812 16.6% 11.5% (8,246) (7,879) - - - - $0.77 Total 13,718,534 815,429 5.9% 16,172 831,601 6.1% 7.0% 122,183 110,103 - - - - $0.64 MARKET TOTAL WH 50,844,192 1,551,061 3.1% 201,636 1,752,697 3.4% 4.1% 1,287,190 1,676,718 737,201 737,201 1,731,785 5,425,451 $0.49 LD 18,243,294 1,747,205 9.6% 52,597 1,799,802 9.9% 11.4% 314,318 476,895 - - - - $0.51 LI 35,565,498 2,522,008 7.1% 116,723 2,638,731 7.4% 8.4% 415,935 564,282 51,502 51,502-28,000 $0.54 INC 8,021,720 952,908 11.9% 1,675 954,583 11.9% 11.8% (13,879) 17,928 - - - - $0.67 FLX 6,368,865 1,063,417 16.7% 34,326 1,097,743 17.2% 18.7% 80,403 220,632 - - - - $0.80 Total 119,043,569 7,836,599 6.6% 406,957 8,243,556 6.9% 7.8% 2,083,967 2,956,455 788,703 788,703 1,731,785 5,453,451 $0.57 QUARTERLY COMPARISON AND TOTALS Q2-15 119,043,569 7,836,599 6.6% 406,957 8,243,556 6.9% 7.8% 2,083,967 2,956,455 788,703 788,703 1,731,785 5,453,451 $0.57 Q1-15 118,254,866 8,973,348 7.6% 294,896 9,268,244 7.8% 8.6% 872,488 872,488 - - 1,633,705 6,665,344 $0.57 Q4-14 118,254,866 9,845,836 8.3% 303,740 10,149,576 8.6% 9.0% 892,946 3,946,539 444,520 1,095,400 862,161 3,071,639 $0.56 Q3-14 117,810,346 10,294,262 8.7% 364,977 10,659,239 9.0% 9.7% 868,758 3,053,593 14,248 650,880 689,022 964,759 $0.56 Q2-14 117,796,098 11,148,772 9.5% 332,362 11,481,134 9.7% 11.0% 1,498,079 2,184,835 219,490 636,632 244,502 963,159 $0.54 Q1-14 117,576,608 12,427,361 10.6% 548,856 12,976,217 11.0% 11.4% 686,756 686,756 417,142 417,142 412,490 391,000 $0.52 Q4-13 117,159,466 12,696,975 10.8% 633,152 13,330,127 11.4% 11.9% 763,243 3,787,211 65,628 813,948 610,147 300,000 $0.52 WH = Warehouse LD = Light Distribution LI = Light Industrial INC = Incubator FLX = Flex 6 Las Vegas Research & Forecast Report Q2 2015 Industrial Colliers International

Research & Forecast Report LAS VEGAS OFFICE Q2 2015 Building Character > > The office market continues to be challenged > > Vacancy has declined in 2015, but demand decreased in the second quarter > > Asking rates have risen $0.04 PSF over the past two years They say that adversity builds character. If that is true, then Southern Nevada s office market has been building character for years now. Net absorption in the second quarter was 92,463 square feet, a marked drop from the 664,773 square feet absorbed in the first quarter of 2015, and lower than the 552,246 square feet absorbed in the second quarter of 2014. Office vacancy fell to 18.5 percent, with 16,052 square feet of new completions of office space in the second quarter. Asking rates increased by $0.02 to $1.91 per square foot (psf) on a Full Service Gross (FSG) basis. Market Indicators Relative to prior period Market Q2 2015 Market Q3 2015* VACANCY NET ABSORPTION COMPLETIONS RENTAL RATE *Projected Historical Vacancy Rates and Asking Lease Rates Summary Statistics Q2 2015 Las Vegas Market Q2-2015 Q1-2015 Q2-2014 22.0% 21.0% 20.0% 19.0% 18.0% 17.0% $1.92 $1.91 $1.90 $1.89 $1.88 $1.87 Vacancy Rate 18.5% 18.7% 19.1% Asking Rent (PSF, FSG) $1.91 $1.89 $1.87 Net Absorption (SF) 92,463 664,773 552,246 New Completions (SF) 16,052 212,888 0 16.0% 15.0% 2 Q 2013 3 Q 2013 4 Q 2013 Vacancy 1 Q 2014 2 Q 2014 3 Q 2014 4 Q 2014 1 Q 2015 Asking Rental Rate The current problem with the office market is not one of lack of demand, but of oversupply. 2 Q 2015 $1.86 $1.85 Overall Asking Rents Per Square Foot Previous Quarter Current Quarter Class A $2.62 $2.60 Class B $1.92 $1.90 Class C $1.61 $1.60

Southern Nevada s office job market improved in April 2015 (the latest month of data available) compared with April 2014, adding approximately 4,900 jobs in the past twelve months, with the largest contributions coming from the professional/business services and health care. Unemployment in the Las Vegas-Paradise MSA stood at 7.1 percent as of April 2015, down from 8.0 percent in April 2014. Since April 2014, total employment in Southern Nevada has increased by 34,600 jobs. Historical Net Absorption vs. Completions 800,000 700,000 600,000 500,000 400,000 300,000 Two Class C office buildings were completed in the Airport submarket this quarter, totaling 16,052 square feet. Only one build-to-suit project remains in play in Southern Nevada, the privately-developed Federal Justice Tower in Downtown, on which construction has stalled. A total of 735,000 square feet of speculative office space is now in the pipeline, with from 200,000-300,000 square feet likely to be completed by the end of 2015. 200,000 100,000 0-100,000-200,000-300,000 2 Q 2013 3 Q 2013 4 Q 2013 Net Absorption 1 Q 2014 2 Q 2014 3 Q 2014 4 Q 2014 Completions 1 Q 2015 2 Q 2015 Southern Nevada s office market had 92,463 square feet of net absorption in the second quarter of 2015, bringing total net absorption at mid-year 2015 to 757,236 square feet. While the second quarter s performance was nothing spectacular, the office market has had a healthy year so far in 2015. Net absorption for all of 2014 totaled only 565,701 square feet. If net absorption remains positive in the third and fourth quarters of 2015, we may end the year with nearly 1 million square feet of net absorption for the first time since 2007. Net absorption was highest in the Northwest submarket (125,406 square feet), followed by Henderson (53,939 square feet). Negative net absorption was experienced in Downtown, which gave back 61,536 square feet of occupied office space, North Las Vegas (negative 38,015 square feet), West Central (negative 32,815 square feet) and Southwest (negative 16,700 square feet). Demand for office space is primarily coming from financial activities (especially mortgage and title companies), professional and business services and health services companies. The construction industry (i.e. developers) is in fifth place behind retail companies in their demand for office space. The reintroduction of companies involved in residential development to the market is likely to have a significant impact on Southern Nevada s office market over the next two to three years. Despite demand for office space rising from the depths of the Great Recession, increases in office employment continue to outstrip increases in demand for office real estate. Larger markets have already seen a movement towards less space per office employee, and the trend will likely continue in smaller markets such as Las Vegas. This, coupled with competition from non-office projects for office uses, will act as a headwind for the office market in 2015 and 2016, though perhaps not as fierce a headwind as the weakness experienced in 2014 suggested. It is worth remembering that a free market economy puts a premium on efficiency, or doing the most with the least. Any activity that can be shifted from expensive office space to inexpensive industrial space will be shifted. Occupancy vs. Office Employment 120,000 119,000 118,000 117,000 116,000 115,000 114,000 113,000 112,000 111,000 2 Q 2013 3 Q 2013 4 Q 2013 Office Jobs 1 Q 2014 2 Q 2014 3 Q 2014 4 Q 2014 1 Q 2015 Occupancy Rate APR 2015 APR 2014 CHANGE Financial Activities 43,800 43,500 + 300 Professional & Business Services 120,200 118,200 + 2,000 Health Care 56,500 53,900 + 2,600 2 Q 2015 83.0% 82.0% 81.0% 80.0% Source: Nevada Department of Employment, Training and Rehabilitation 79.0% 78.0% 77.0% 76.0% 75.0% 74.0% 2 Las Vegas Research & Forecast Report Q2 2015 Office Colliers International

Positive net absorption drove the office vacancy rate down to 18.5 percent in the second quarter of 2015. This is 0.2 percentage points lower than one quarter ago, and 0.6 percentage points lower than one year ago. Office vacancy remains very high, but is moving in the right direction. At recent rates of net absorption, the office market could stabilize at 10.0 percent vacancy in approximately 3.5 years. Office vacancy decreased in four of the Valley s eight submarkets in the second quarter of 2015, with the Northwest submarket experiencing the largest decrease (1.4 percentage points), followed by Henderson, East Las Vegas and Airport. Vacancy increased in North Las Vegas, Downtown, West Central and Southwest. The Valley s lowest vacancy rate remains in Downtown, at 12 percent, while East Las Vegas has the Valley s highest vacancy rate, at 24.5 percent. Over the next few years, East Las Vegas should see the completion of a major expansion and renewal of the Las Vegas Convention Center, the completion of the nearby World Resorts property on the Strip and the potential construction of a new stadium near UNLV, all of which may stimulate demand in that submarket and solidify it as the Valley s commercial core. Vacancy in Class A office stood at 23.3 percent in the second quarter of 2015, down from 26.3 percent in the second quarter of 2014. Class B product saw vacancy increase by 0.5 percentage points over the past four quarters to 17.6 percent, while vacancy in Class C office decreased by 0.8 percentage points to 17.8 percent over the same period. Of the office deals Colliers has tracked in the past four quarters, the most active industries were financial activities (including real estate and insurance services), business and personal services, health services, and information. Local companies took 62.0 percent of the space being tracked over this period, while 17.9 percent of this space was taken by companies headquartered in the Southeast United States and 6.2 percent by companies in the Midwest. The weighted average asking rental rate for office space in Southern Nevada increased to $1.91 per square foot (psf) on a full service gross (FSG) basis in the second quarter of 2015, a $0.02 decrease from the first quarter of 2015, and a $0.04 increase from the second quarter of 2014. Asking lease rates have hovered around $1.88 for the past three years, and now appear to be increasing very slowly. Available office space for sublease took a significant jump in the first quarter of 2014 due to Citibank putting its operations call center on the market. This brought available sublease space to 427,367 square feet from 2013 s 186,390 square feet. Over the course of 2014, another 40,000 square feet of space was made available for sublease, and the amount of sublease space on the market continued to increase in 2015. The total amount of office Investment Sales Activity 2011 2012 2013 2014 2015 YTD No. Sales 59 87 90 71 23 Square Footage 2,484,000 3,929,000 3,512,000 2,505,000 676,000 Sales Volume $182.4 MM $261.0 MM $571.9 MM $296.4 MM $122.8 MM Average Price/SF $73.42 $89.11 $162.83 $118.32 $181.65 Average Cap Rate 9.7% 8.2% 7.6% 7.7% 7.6% Average Sale Size (SF) 42,000 34,000 39,000 35,000 29,000 *Cap rate on office properties available for sale as investments Office Development Pipeline Project Type Submarket Size (SF) Status Completion Build-To-Suit 129,000 Federal Justice Tower Class A Downtown 129,000 UC 2015 Speculative 595,000 Centennial Hills Center Class B Northwest 124,000 PC 2016 Chronicle at Cadence Class C Henderson 25,000 PC 2015 Cimarron/Rafael Rivera Class B Southwest 19,000 PC 2016 Corona Del Mar Corporate Center Class B Southwest 47,000 UC Q3-2015 The Grid Class A Downtown 125,000 PC 2017 Seven Hills Plaza D Class B Henderson 42,000 PC 2016 Stone Creek Professional Plaza Class C Southwest 20,000 PC 2016 The Square Class C Southwest 80,000 PC 2016 Tivoli Village Class A Northwest 68,000 PC 2016 University Gateway Class C East Las Vegas 45,000 PC 2016 3 Las Vegas Research & Forecast Report Q2 2015 Office Colliers International

space available for sublease in Southern Nevada now stands at 506,330 square feet. This is the most sublease space that has been available in Southern Nevada since the first quarter of 2010. The office investment sales volume in the first four months of 2015 was $122.8 million in 23 sales that totaled 676,500 square feet. These sales had an average sales price of $181.65 psf, a sharp increase from 2014 s average sales price of $118.32 psf. The average cap rate so far in 2015 was 7.6 percent, slightly lower than in 2014. Sales activity in the first quarter seemed to indicate that Southern Nevada would best its 2014 performance in investment sales, but a slow second quarter has made that less likely. There is currently 1.48 million square feet of office space available for sale as investments, with an average asking price of $192.11 psf and an average cap rate of 8.0 percent. While the decrease in net absorption from the first quarter of 2015 to the second quarter of 2015 was unwelcome, it is worth remembering that net absorption did at least remain positive. The office recovery has not always been pretty, but it has been better than one might think. Last quarter, total occupied office square footage reached 35.3 million square feet, surpassing the old peak of 34.9 million square feet in the fourth quarter of 2007, just before the beginning of the recession. In that respect, one could say that the office market has to some extent recovered from the Great Recession. Adjusting for inflation, asking lease rates remain about $0.20 lower than they were in 2005, before the boom, but that is to be expected when one considers the large amount of vacant office space left on the market. Some of this oversupply can be blamed on projects that were justified before the onset of the recession. Approximately 2.4 million square feet of office space was completed in the six quarters after the beginning of the recession, as projects started before the recession hit were finished. If we could magically remove this space from inventory and vacancy, we would have a vacancy rate of 13.8 percent high, but manageable. The current problem with the office market is not a lack of demand, but of oversupply. Demand for office space in Southern Nevada has remained remarkably consistent over the years, and will eventually catch up to the office product that was completed during the boom. THEY SAY THAT ADVERSITY BUILDS CHARACTER. IF THAT IS TRUE, THEN SOUTHERN NEVADA S OFFICE MARKET HAS BEEN BUILDING CHARACTER FOR YEARS NOW. Marnell Corporate Center 4 Las Vegas Research & Forecast Report Q2 2015 Office Colliers International

215 NORTH LAS VEGAS Significant Office Sale Activity Fort Apache Road 95 7,000 SF - $3,641,000 $518.00/SF April 2015 NORTHWEST 15 Class C Flamingo Courtyard SUMMERLIN WEST CENTRAL DOWN TOWN EAST LAS VEGAS 48,000 SF - $2,100,000 $44.00/SF April 2015 Class C Green Valley Parkway 54,000 SF - $2,831,000 95 $53.00/SF May 2015 Class B 215 AIRPORT The Park Business Center 21,000 SF - $2,300,000 $107.00/SF SOUTHWEST HENDERSON April 2015 Class C Pecos Road 7,000 SF - $3,496,000 $523.00/SF April 2015 Class C Lease Activity Property Name Lease Date Lease Term Size Lease Rate Type The Arroyo Business Center May 2015 89 months 21,000 SF $1.67 NNN Class C Desert Professional Center May 2015 67 months 18,000 SF $1.81 NNN Class B Sansone 215 Pecos May 2015 39 months 5,000 SF $1.29 NNN Class C Spencer Street May 2015 36 months 5,000 SF $1.04 FSG Class B Charleston Valley View Office Park Apr 2015 12 months 4,000 SF $1.50 MG Class B 5 Las Vegas Research & Forecast Report Q2 2015 Office Colliers International

Market Comparisons - Las Vegas Office Market CLASS TOTAL INVENTORY SF DIRECT VACANT SF DIRECT VACANCY RATE SUBLEASE VACANT SF VACANCY RATE TOTAL VACANT CURRENT SF QUARTER VACANCY RATE PRIOR QUARTER NET ABSORPTION CURRENT QTR SF NET ABSORPTION YTD SF COMPLETIONS CURRENT QTR SF COMPLETIONS YTD SF UNDER CONSTRUCTION SF PLANNED CONSTRUCTION SF WEIGHTED AVG ASKING RENTAL RATE AIRPORT SUBMARKET A 605,557 123,736 20.4% - 123,736 20.4% 19.8% (7,953) 65,786 - - - - $2.65 B 2,400,206 310,870 13.0% 22,148 333,018 13.9% 14.1% 10,092 18,157 - - - - $2.09 C 3,169,862 600,237 18.9% 18,839 619,076 19.5% 20.2% 21,738 40,038-7,894 11,794 - $1.70 Total 6,175,625 1,034,843 16.8% 40,987 1,075,830 17.4% 17.8% 23,877 123,981-7,894 11,794 - $1.93 DOWNTOWN SUBMARKET A 1,103,341 221,492 20.1% 9,036 230,528 20.9% 16.2% (52,174) (80,447) - - 129,000 125,000 $2.61 B 2,439,624 240,586 9.9% 21,156 261,742 10.7% 10.2% (12,721) 220 - - - - $1.47 C 1,475,100 141,110 9.6% - 141,110 9.6% 9.8% 3,359 12,027 - - - - $1.45 Total 5,018,065 603,188 12.0% 30,192 633,380 12.6% 11.4% (61,536) (68,200) - - 129,000 125,000 $1.88 EAST LAS VEGAS SUBMARKET A 1,353,083 319,417 23.6% 10,627 330,044 24.4% 24.5% 1,752 6,294 - - - - $2.93 B 1,542,404 430,313 27.9% 10,071 440,384 28.6% 30.6% 32,144 133,582 - - - - $1.26 C 2,684,186 615,280 22.9% 700 615,980 22.9% 22.8% (3,847) 18,634 - - 45,000 - $1.35 Total 5,579,673 1,365,010 24.5% 21,398 1,386,408 24.8% 25.4% 30,049 158,510 - - 45,000 - $1.69 HENDERSON SUBMARKET A 583,905 175,432 30.0% - 175,432 30.0% 33.2% 18,616 108,784 - - - - $2.64 B 2,451,037 398,446 16.3% - 398,446 16.3% 16.6% 7,963 34,172 - - - 42,000 $2.05 C 2,347,640 431,402 18.4% 5,618 437,020 18.6% 19.8% 27,360 18,061 - - - 25,000 $1.70 Total 5,382,582 1,005,280 18.7% 5,618 1,010,898 18.8% 19.8% 53,939 161,017 - - - 67,000 $2.00 NORTH LAS VEGAS SUBMARKET A - - n/a - - n/a n/a - - - - - - $- B 245,696 96,429 39.2% 8,931 105,360 42.9% 30.5% (30,479) (29,789) - - - - $1.93 C 518,831 79,022 15.2% - 79,022 15.2% 13.8% (7,536) (11,711) - - - - $1.53 Total 764,527 175,451 22.9% 8,931 184,382 24.1% 19.1% (38,015) (41,500) - - - - $1.75 NORTHWEST SUBMARKET A 1,825,415 470,471 25.8% 5,877 476,348 26.1% 28.3% 43,247 62,325 - - 68,000 - $2.40 B 3,542,455 614,347 17.3% 9,123 623,470 17.6% 18.4% 30,444 66,451 - - - 87,000 $2.14 C 3,339,493 471,325 14.1% 2,402 473,727 14.2% 15.7% 51,715 101,166-4,994-37,100 $1.76 Total 8,707,363 1,556,143 17.9% 17,402 1,573,545 18.1% 19.5% 125,406 229,942-4,994 68,000 124,100 $2.10 SOUTHWEST SUBMARKET A 597,112 115,916 19.4% - 115,916 19.4% 21.7% 13,507 175,338-200,000 - - $2.66 B 2,762,336 515,425 18.7% 51,917 567,342 20.5% 20.8% 17,993 38,299 - - 46,650 19,000 $2.44 C 3,283,130 597,834 18.2% 1,118 598,952 18.2% 16.8% (48,200) (30,399) - - - 100,040 $1.80 Total 6,642,578 1,229,175 18.5% 53,035 1,282,210 19.3% 18.9% (16,700) 183,238-200,000 46,650 119,040 $2.15 WEST CENTRAL SUBMARKET A 157,624 23,231 14.7% 5,236 28,467 18.1% 15.1% 600 (7,669) - - - - $2.49 B 1,925,956 440,635 22.9% - 440,635 22.9% 22.4% (17,205) (39,785) - - - - $1.67 C 3,047,699 602,157 19.8% - 602,157 19.8% 19.2% (16,210) 49,444 - - - - $1.46 Total 5,131,279 1,066,023 20.8% 5,236 1,071,259 20.9% 20.3% (32,815) 1,990 - - - - $1.57 MARKET TOTAL A 6,226,037 1,449,695 23.3% 30,776 1,480,471 23.8% 24.0% 17,595 330,411-200,000 197,000 125,000 $2.62 B 17,309,714 3,047,051 17.6% 123,346 3,170,397 18.3% 18.5% 38,231 221,307 - - 46,650 148,000 $1.92 C 19,865,941 3,538,367 17.8% 28,677 3,567,044 18.0% 18.1% 28,379 197,260-12,888 56,794 162,140 $1.61 Total 43,401,692 8,035,113 18.5% 182,799 8,217,912 18.9% 19.1% 84,205 748,978-212,888 300,444 435,140 $1.91 QUARTERLY COMPARISON AND TOTALS Q2-15 43,401,692 8,035,113 18.5% 182,799 8,217,912 18.9% 19.1% 84,205 748,978-212,888 300,444 435,140 $1.91 Q1-15 43,401,692 8,119,318 18.7% 172,615 8,291,933 19.1% 20.2% 664,773 664,773 212,888 212,888 300,444 310,140 $1.89 Q4-14 43,188,804 8,571,203 19.8% 146,951 8,718,154 20.2% 19.2% (171,126) 565,701 268,420 376,620 460,438 418,140 $1.90 Q3-14 42,920,384 8,131,657 18.9% 111,340 8,242,997 19.2% 19.3% 57,087 736,827 12,000 108,200 757,444 150,040 $1.87 Q2-14 42,908,384 8,176,744 19.1% 103,002 8,279,746 19.3% 20.6% 552,246 679,740-96,200 706,894 255,040 $1.87 Q1-14 42,908,384 8,728,990 20.3% 96,347 8,825,337 20.6% 20.8% 127,494 127,494 96,200 96,200 597,000 234,934 $1.87 Q4-13 42,812,184 8,760,284 20.5% 163,859 8,924,143 20.8% 21.6% 309,801 823,744-627,354 693,200 154,894 $1.87 6 Las Vegas Research & Forecast Report Q2 2015 Office Colliers International

Research & Forecast Report LAS VEGAS RETAIL Q2 2015 Retail Back on Track > > The retail sector is back on track after a slow 2014 > > Taxable retail sales are on the rise in Southern Nevada > > Demand for retail real estate is up, and asking rents are on the rise as well Southern Nevada s retail market continued to bounce back from its very weak showing in the fourth quarter of 2015. Net absorption in the second quarter of 2015 totaled 166,145 square feet, bringing mid-year net absorption to 348,085 square feet. Vacancy decreased to 9.7 percent from the first quarter of 2015 s 9.8 percent, but remains 0.1 percentage point higher than in the second quarter of 2014. Retail completions totaled 67,629 square feet in the second quarter. The asking rental rate for retail space increased to $1.28 per square foot (psf) on a triple-net (NNN) basis. Market Indicators Relative to prior period Market Q2 2015 Market Q3 2015* VACANCY NET ABSORPTION COMPLETIONS RENTAL RATE *Projected Historical Vacancy Rates and Asking Lease Rates 11.0% $1.38 Summary Statistics Q2 2015 Las Vegas Market Q2-2015 Q1-2015 Q2-2014 10.0% $1.35 Vacancy Rate 9.7% 9.8% 9.6% 9.0% 8.0% 7.0% 6.0% $1.32 $1.29 $1.26 $1.23 Asking Rent (PSF, NNN) $1.28 $1.25 $1.26 Net Absorption (SF) 166,145 181,940 242,892 New Completions (SF) 67,629 0 30,318 5.0% 3 Q 2013 4 Q 2013 1 Q 2014 2 Q 2014 3 Q 2014 4 Q 2014 1 Q 2015 2 Q 2015 Vacancy Asking Rental Rate We think the market will end 2015 with net absorption in the range of 500,000 square feet, with vacancy approximately 9.4 percent. $1.20 Overall Asking Rents Per Square Foot Previous Quarter Current Quarter Power Center $1.51 $1.51 Community Center $1.21 $1.16 Neighborhood Center $1.42 $1.36 Strip Center $1.18 $1.15

Southern Nevada s retail job market improved slightly in April 2015 (the latest month of data available) compared with April 2014, adding approximately 3,000 jobs in the past twelve months. Most of these additional jobs have impacted community center and strip center projects. Unemployment in the Las Vegas-Paradise MSA stood at 7.1 percent as of April 2015, down from 8.0 percent in April 2014. Since April 2014, total employment in Southern Nevada has increased by 34,600 jobs. Clark County s taxable retail sales for the first quarter of 2015 totaled $5.7 billion, slightly better than the $5.4 billion of taxable retail sales recorded in the first quarter of 2014. The largest increases in taxable sales in the first quarter of 2015 compared to the first quarter of 2014 were in electronics and appliances retailers (23.0 percent increase), home improvement and garden retailers (13.2 percent increase) and hobby retailers (10.4 percent increase). Miscellaneous store retailers saw taxable sales decrease by 21.7 percent year-over-year. In the second quarter, there was a 15,159 square foot expansion of an existing community center in Henderson and a 52,470 square foot strip center in the Downtown submarket anchored by a new Walgreens. Forward supply in 2015 constitutes 354,138 square feet in the second quarter of 2015, which would represent a rather mild expansion of Southern Nevada s retail inventory if it all were completed. The most notable new retail project in Southern nevada is the planned IKEA freestanding retail building in the Southwest, which should initially be 351,000 square feet, with the potential for future expansion. Historical Net Absorption vs. Completions 300,000 250,000 200,000 150,000 100,000 50,000 0-50,000-100,000-150,000-200,000-250,000 3 Q 2013 4 Q 2013 1 Q 2014 2 Q 2014 3 Q 2014 4 Q 2014 1 Q 2015 2 Q 2015 Net Absorption Occupancy vs. Retail Employment 43,000 42,000 41,000 40,000 39,000 38,000 Completions 93.0% 92.0% 91.0% 90.0% 89.0% 88.0% Gross absorption of retail product at mid-year 2015 totaled 3.4 million square feet, an improvement over mid-year 2014 s meager 2.9 million square feet. The retail market is more active in 2015 than in 2014, and this is leading to higher net absorption and decreasing vacancy rates. 37,000 36,000 3 Q 2013 4 Q 2013 1 Q 2014 2 Q 2014 3 Q 2014 4 Q 2014 1 Q 2015 2 Q 2015 Retail Jobs Occupancy Rate 87.0% 86.0% Southern Nevada s retail market appears to be coming back to life after a brief detour into negative net absorption in 2014. By and large, this appears to be simply the normal business cycle reasserting itself on the retail market after the close of the Great Recession and the recovery that occurred in 2012 and 2013. Retail vacancy now stands at 9.7 percent, down from last quarter, but Households Ave. HH Income (2015) Occupied Retail Space (2015 Average) Occupied Retail Space (2016 Projected) Downtown 36,500 $37,500 987,000 1,000,000 Henderson 107,100 $78,000 7,587,000 8,050,000 North Las Vegas 71,600 $62,000 4,485,000 4,851,000 Northeast 78,600 $50,400 2,367,000 2,488,000 Northwest 149,400 $74,200 10,332,000 10,892,000 Southwest 91,100 $75,900 5,481,000 6,028,000 University East 104,200 $54,200 5,236,000 5,464,000 West Central 54,600 $49,000 4,204,000 4,277,000 2 Las Vegas Research & Forecast Report Q2 2015 Retail Colliers International

still higher than one year ago, before the 2014 detour took place. At current rates of net absorption, it would take the retail market a very long time to get back to a normalized 5 percent vacancy rate. Among submarkets, the Valley s highest vacancy this quarter was 12.9 percent in University East, followed by 11.4 percent in West Central. Both of these high vacancy submarkets are among the older retail submarkets in Southern Nevada, with properties averaging 27 years old in University East and 29 years old in West Central. The average age of a retail property in all of Southern Nevada is 21 years. The Southwest submarket had the lowest vacancy rate in the Valley at 6.6 percent, followed by Northeast at 7.4 percent. Downtown, Northeast, Southwest, University East and West Central experienced decreases in vacancy this quarter, while Henderson, North Las Vegas and Northwest saw vacancy increase. The average asking rental rate for retail space in Southern Nevada stood at $1.28 per square foot (psf) on a Triple-Net basis (NNN). This was $0.02 higher than in the second quarter of 2014. Asking rates for retail remain at the lowest levels we have recorded in twelve years. Adjusting for inflation, asking rental rates are now $0.96 psf NNN in 2002 dollars, approximately $0.44 lower than in 2002. Over the past quarter, average asking rents decreased in Southwest and University East, while asking rents increased in Downtown, Henderson, North Las Vegas, Northeast, Northwest and West Central. Since last quarter, power center asking rents remained stable at $1.51 psf NNN, community center asking rents increased by $0.04 to $1.21 psf NNN, neighborhood center asking rents increased by $0.05 to $1.42 psf NNN and strip center asking rents increased to $0.03 to $1.18 psf NNN. Shopping center investment sales volume year-to-date in 2015 was $129.0 million in 17 sales totaling 815,000 square feet. The average sales price was $158.36 psf, and the average cap rate was 8 percent. Single-tenant retail investment sales volume year-to-date in 2015 was $45.9 million in 16 sales totaling 264,000 square feet. The average sales price was $174.25 psf, and the average cap rate was 7.1 percent. Single-tenant retail owner/user sales volume year-todate in 2015 was $61.1 million in 24 sales totaling 412,000 square feet. The average sales price was $148.18 psf. Retailers slated to enter Southern Nevada or expanding here include Paul Mitchell, Discount Tire, Lolo s Chicken & Waffles, Chick-Fil-A, PDQ Chicken, Café Rio, Five Guys Burger & Fries, Black Bear Diner, Wingnutz, Pei Wei, and Cheeseburger Cheeseburger. Eight Radio Shack locations are closing in the Valley. Target is introducing a new Target Express concept to compete with Dollar General or Walgreens, though no locations have yet been announced in Southern Nevada. In addition, two Fresh & Easy locations in Las Vegas are set to close in the very near future. After a detour in 2014, the retail recovery appears to be back on track. Net absorption has been positive for the last two quarters, and year-to-date net absorption is higher in 2015 than year-end net absorption was in 2012 and 2014. Of course, one does not know what demand will be for the remainder of 2015, but increased taxable retail sales and increased retail employment suggests that net absorption will remain positive. We think the market will end 2015 with net absorption in the range of 500,000 square feet, with vacancy approximately 9.4 percent. Single Tenant Retail 2011 2012 2013 2014 2015 YTD No. Sales 28 25 49 63 16 Square Footage Sold 825,000 319,000 868,000 551,000 264,000 Sales Volume $62.9 MM $78.2 MM $146.0 MM $192.3 MM $45.9 MM Average Price/SF $76.23 $244.81 $168.23 $348.70 $174.25 Average Sale Size (SF) 30,000 13,000 18,000 9,000 16,500 Retail Development Pipeline Project Type Submarket Size Completion Under Construction 130,000 SF Silverado Promenade Neighborhood Center University East 130,000 SF Q4-2015 Planned Construction 5,407,000 Decatur 215 Community Center Northwest 152,000 2016 DCs Plaza Neighborhood Center Northwest 73,000 2016 Whitney Ranch Retail Strip Retail Henderson 42,000 2016 Maryland Parkway Retail Strip Retail Henderson 30,000 2016 3 Las Vegas Research & Forecast Report Q2 2015 Retail Colliers International

NORTHWEST 95 215 NORTH LAS VEGAS 15 Significant Retail Sale Activity Decatur Ann Marketplace 24,000 SF - $7,130,000 $295.00/SF April 2015 Neighborhood Center WEST CENTRAL DOWN TOWN UNIVERSITY AIRPORT 95 NORTHEAST LAS VEGAS Village At Craig 8,000 SF - $9,000,000 $1,071.00/SF April 2015 Strip Retail Lake Mead Decatur Center 98,000 SF - $8,313,000 $85.00/SF April 2015 Neighborhood Center SOUTHWEST 215 HENDERSON Sahara Pavilion North 333,000 SF - $33,000,000 $99.00/SF April 2015 Power Center RESORT CORRIDOR Rock Springs Plaza 22,000 SF - $13,702,000 $614.00/SF April 2015 Strip Retail Lease Activity Property Name Lease Date Lease Term Size Lease Rate Type Sunrise City Plaza May 2015 36 months 29,000 SF $0.40 NNN Community Center Sunrise City Plaza May 2015 63 months 8,000 SF $1.06 NNN Community Center Warm Springs Road May 2015 62 months 7,000 SF $1.18 NNN Freestanding Galleria Pavilion Apr 2015 60 months 6,000 SF $2.16 NNN Strip Retail Best In The West May 2015 60 months 6,000 SF $2.60 NNN Power Center 4 Las Vegas Research & Forecast Report Q2 2015 Retail Colliers International

Market Comparisons - Las Vegas Retail Market TYPE TOTAL INVENTORY SF DIRECT VACANT SF DIRECT VACANCY RATE SUBLEASE VACANT SF TOTAL VACANT SF VACANCY RATE CURRENT QUARTER VACANCY RATE PRIOR QUARTER NET ABSORPTION CURRENT QTR SF NET ABSORPTION YTD SF COMPLETIONS CURRENT QTR SF COMPLETIONS YTD SF UNDER CONSTRUCTION SF PLANNED CONSTRUCTION SF WEIGHTED AVG ASKING RENTAL RATE DOWNTOWN PC - - n/a - - n/a n/a - - - - - - $- CC 607,055 92,579 15.3% - 92,579 15.3% 24.0% 53,410 59,325 - - - - $1.09 NC 518,070 31,877 6.2% - 31,877 6.2% 1.1% (26,372) (31,877) - - - - $0.96 SC 1,012,125 70,457 7.0% - 70,457 7.0% 4.9% 28,636 49,056 52,470 52,470 - - $1.41 Total 2,137,250 194,913 9.1% - 194,913 9.1% 9.5% 55,674 76,504 52,470 52,470 - - $1.24 HENDERSON PC 2,896,215 239,647 8.3% - 239,647 8.3% 9.9% 47,964 41,564 - - - - $1.56 CC 2,646,472 243,619 9.2% - 243,619 9.2% 9.2% 12,462 5,868 15,159 15,159 - - $1.16 NC 2,841,887 289,386 10.2% 161,894 451,280 15.9% 14.4% (11,346) (27,390) - - - - $1.59 SC 1,896,850 286,886 15.1% 1,950 288,836 15.2% 11.6% (67,422) (53,279) - - - - $1.31 Total 10,281,424 1,059,538 10.3% 161,894 1,221,432 11.9% 11.3% (18,342) (33,237) 15,159 15,159 - - $1.36 NORTH LAS VEGAS PC 832,000 32,065 3.9% - 32,065 3.9% 3.9% - - - - - - $1.09 CC 2,311,384 292,058 12.6% 73,755 365,813 15.8% 15.5% (6,766) 53,928 - - - - $1.30 NC 1,806,524 146,565 8.1% - 146,565 8.1% 7.8% (5,097) 21,898 - - - - $1.63 SC 1,450,206 263,233 18.2% - 263,233 18.2% 13.9% (64,761) (72,662) - - - - $1.10 Total 6,400,114 733,921 11.5% 73,755 807,676 12.6% 11.5% (76,624) 3,164 - - - - $1.26 NORTHEAST PC - - n/a - - n/a n/a - - - - - - $- CC 1,281,026 93,714 7.3% 18,614 112,328 8.8% 14.7% 76,343 45,129 - - - - $1.06 NC 1,306,795 94,063 7.2% 62,301 156,364 12.0% 11.1% (10,990) (11,590) - - - - $1.26 SC 768,914 61,341 8.0% - 61,341 8.0% 6.5% (11,555) (16,756) - - - - $0.96 Total 3,356,735 249,118 7.4% 80,915 330,033 9.8% 11.4% 53,798 16,783 - - - - $1.10 NORTHWEST PC 3,158,686 171,534 n/a - 171,534 5.4% 5.3% (4,759) 61,627 - - - - $1.84 CC 4,281,890 226,247 5.3% - 226,247 5.3% 4.8% (22,329) (30,703) - - - 152,000 $1.50 NC 3,633,796 358,266 9.9% 159,931 518,197 14.3% 14.0% (658) 26,116 - - - 72,550 $1.28 SC 2,481,836 309,374 12.5% 2,300 311,674 12.6% 12.7% 4,842 63,646 - - - - $1.25 Total 13,556,208 1,065,421 7.9% 159,931 1,225,352 9.0% 8.8% (22,904) 120,686 - - - 224,550 $1.37 SOUTHWEST PC 944,314-0.0% 6,900 6,900 0.7% 1.4% 6,403 6,403 - - - - $1.96 CC 3,216,421 161,347 5.0% 1,047 162,394 5.0% 6.2% 28,967 72,292 - - - - $1.67 NC 1,623,100 122,834 7.6% - 122,834 7.6% 7.7% 1,998 21,487 - - - - $1.74 SC 2,515,451 262,426 10.4% 500 262,926 10.5% 12.1% 41,135 39,347 - - - - $1.39 Total 8,299,286 546,607 6.6% 7,947 554,554 6.7% 7.7% 78,503 139,529 - - - - $1.59 UNIVERSITY EAST PC 1,210,223 21,382 1.8% - 21,382 1.8% 8.9% 86,922 86,922 - - - - $1.51 CC 2,760,749 477,517 17.3% - 477,517 17.3% 17.1% (4,543) (60,950) - - - - $0.96 NC 1,953,965 147,339 7.5% 79,749 227,088 11.6% 10.8% 3,960 10,375 - - 129,588 - $1.29 SC 2,817,725 479,134 17.0% 6,230 485,364 17.2% 16.1% (31,204) (25,165) - - - - $1.03 Total 8,742,662 1,125,372 12.9% 79,749 1,205,121 13.8% 14.3% 55,135 11,182 - - 129,588 - $1.07 WEST CENTRAL PC 1,138,224 148,826 13.1% - 148,826 13.1% 17.9% 54,351 57,000 - - - - $1.15 CC 1,910,276 300,407 15.7% - 300,407 15.7% 13.5% (42,042) (83,944) - - - - $1.15 NC 1,746,530 126,558 7.2% 100,667 227,225 13.0% 14.1% 18,350 (13,289) - - - - $1.21 SC 2,187,096 221,515 10.1% - 221,515 10.1% 10.6% 10,246 53,707 - - - - $1.01 Total 6,982,126 797,306 11.4% 100,667 897,973 12.9% 13.4% 40,905 13,474 - - - - $1.04 MARKET TOTAL PC 10,179,662 613,454 6.0% 6,900 620,354 6.1% 8.0% 190,881 253,516 - - - - $1.51 CC 19,015,273 1,887,488 9.9% 93,416 1,980,904 10.4% 10.9% 95,502 60,945 15,159 15,159-152,000 $1.21 NC 15,430,667 1,316,888 8.5% 564,542 1,881,430 12.2% 11.6% (30,155) (4,270) - - 129,588 72,550 $1.42 SC 15,130,203 1,954,366 12.9% 10,980 1,965,346 13.0% 12.1% (90,083) 37,894 52,470 52,470 - - $1.18 Total 59,755,805 5,772,196 9.7% 675,838 6,448,034 10.8% 10.9% 166,145 348,085 67,629 67,629 129,588 224,550 $1.25 QUARTERLY COMPARISON AND TOTALS Q2-15 59,755,805 5,772,196 9.7% 675,838 6,448,034 10.8% 10.9% 166,145 348,085 67,629 67,629 129,588 224,550 $1.25 Q1-15 59,688,176 5,870,712 9.8% 623,327 6,494,039 10.9% 10.6% 181,940 181,940 0 0 67,629 468,883 $1.25 Q4-14 59,688,176 6,052,652 10.1% 295,068 6,347,720 10.6% 10.2% (207,920) 47,114 49,895 300,213 67,629 564,865 $1.25 Q3-14 59,638,281 5,794,837 9.7% 306,275 6,101,112 10.2% 10.1% 130,830 255,034 220,000 250,318 187,210 167,159 $1.26 Q2-14 59,418,281 5,705,667 9.6% 305,945 6,011,612 10.1% 10.5% 242,892 124,204 30,318 30,318 312,995 251,184 $1.26 Q1-14 59,387,963 5,918,241 10.0% 313,578 6,231,819 10.5% 10.0% (118,688) (118,688) 0 0 441,791 345,114 $1.29 Q4-13 44,267,130 4,106,103 9.3% 311,103 4,417,206 10.0% 9.8% (150,974) 150,870 8,000 8,000 343,313 261,089 $1.36 PC = Power Center CC = Community Center NC = Neighborhood Center SC = Strip Center 5 Las Vegas Research & Forecast Report Q2 2015 Retail Colliers International

Research & Forecast Report LAS VEGAS MULTIFAMILY Q2 2015 Supply and Demand > > Las Vegas multifamily market continues to flourish > > Vacancy rates are low, and have been decreasing steadily for many years > > High demand is stimulating new construction; more projects under construction now than in 5 years According to statistics provided by REIS, multifamily vacancy in Southern Nevada decreased in the first quarter of 2015 (the most recent quarter of available data), extending a three year long streak. Vacancy stood at 5.1 percent in the first quarter, 0.6 percentage points lower than one year ago, and 0.3 percentage points lower than in the fourth quarter of 2014. Class A properties were 5.3 percent vacant in the first quarter, 0.1 percentage points lower than in the fourth quarter of 2014. Class B/C properties were 4.8 percent vacant, 0.6 percentage points lower than one quarter ago. Market Indicators Relative to prior period Market Q2 2015 Market Q3 2015* VACANCY NET ABSORPTION COMPLETIONS RENTAL RATE *Projected Historical Vacancy Rates and Rental Rates 6.0% 5.8% 5.6% 5.4% 5.2% 5.0% 4.8% Vacancy vs Rents $890 $880 $870 $860 $850 $840 $830 Summary Statistics Q2 2015 Las Vegas Market Q1-2015 Q4-2015 Q1-2014 Vacancy Rate 5.1% 5.4% 5.7% Rent (Per Unit) $889 $878 $859 Net Absorption YTD (Units) 746 1,549 223 New Completions YTD (Units) 110 511 86 4.6% 4 Q 2013 1 Q 2014 2 Q 2014 3 Q 2014 4 Q 2014 1 Q 2015 Vacancy Rate Average Rental Rate $820 Overall Asking Rents Per Unit Per Month Current Quarter Previous Quarter Since the onset of the Great Recession s recovery, Southern Nevada s multifamily market has done exceedingly well. Class A $1,011 $999 Class B/C $774 $746

All eight multifamily submarkets showed positive net absorption in the first quarter of 2015, with the highest net absorption found in Northwest/Southwest (157 units) despite a negative contribution from Class B/C multifamily in that submarket. On a property class basis, Class A multifamily had 352 units of net absorption in the first quarter of 2015. Class B/C properties absorbed 394 units net. Historical Net Absorption vs. Completions 800 700 Net Absorption vs. Completions There was one new multifamily completion in the first quarter of 2015, Vantage Lofts in Henderson/Green Valley with 110 units. In the second quarter of 2015, a total of 1,148 units were completed in the Henderson/Green Valley and Northwest/Southwest submarkets. A total of 1,175 units of multifamily are under construction in the Valley, with another 4,403 units planned to begin construction within the next 12 months. This planned construction represents the largest expansion of inventory in the valley in over five years, and is a response to the strong demand for multifamily since the end of the Great Recession. 600 500 400 300 200 100 0 4 Q 2013 1 Q 2014 2 Q 2014 3 Q 2014 4 Q 2014 1 Q 2015 Net Absorption (Units) Completions (Units) Asking rents for multifamily stood at $889 per unit in the first quarter of 2015, increasing by $30 per unit year-over-year, and $11 per unit since last quarter. Class A properties had an average asking rent of $1,011 per unit (1.2 percent quarterly growth), compared to an average asking rent of $774 (1.3 percent quarterly growth) for Class B/C properties. Rents are climbing more quickly than during 2014, which is not surprising considering the low vacancy rate and high net absorption enjoyed by Southern Nevada s multifamily market. Sales (Units) vs. Price Per Unit 7,000 6,000 5,000 4,000 Sales (Units) vs. Price Per Unit $100,000 $90,000 $80,000 $70,000 REIS predicts that multifamily vacancy will bottom out in 2015, and then begin climbing due to increased construction and increased competition by single-family residences. They predict that vacancy will reach 6.5 percent in 2018, after 12,703 units have been added to Southern Nevada s multifamily inventory. 3,000 2,000 1,000 0 4 Q 2013 1 Q 2014 2 Q 2014 3 Q 2014 4 Q 2014 1 Q 2015 Total Sales (Units) Average Price Per Unit $60,000 $50,000 $40,000 $30,000 Unemployment in the Las Vegas-Paradise MSA stood at 7.1 percent as of April 2015, down from 8.0 percent in April 2014. Unemployment averaged 7.9 percent in 2014, compared to 10 percent in 2013. Since April 2014, total employment in Southern Nevada increased by 34,600 jobs, the majority in leisure/ hospitality (+14,100 jobs), construction (+8,900 jobs), and trade/ transportation/utilities (+3,600 jobs). The return of the leisure/ Demographics Submarket Estimated Households Renter Occupied Median Household Average Household Proj. Annual Growth Rental Households (2015-2020) Downtown 49,000 59% $30,100 2.8 69 East 56,000 44% $41,000 2.7 241 Henderson/Southeast 139,000 37% $57,000 2.6 720 North Las Vegas 113,000 38% $49,000 3.1 584 Northeast 48,000 48% $38,000 3.3 194 Northwest/Southwest 148,000 33% $63,000 2.7 840 University 35,000 77% $32,000 2.2 113 West Central 106,000 54% $44,000 2.4 458 TOTAL 694,000 43% $49,000 2.7 3,521 Source: Claritas 2 Las Vegas Research & Forecast Report Q2 2015 Multifamily Colliers International

hospitality and construction sectors to the fore of job growth is a return to form for Southern Nevada. It is worth noting, though, that despite recent improvements, construction employment in Southern Nevada remains 60,100 jobs below its peak in 2006. Key sectors showing a loss of jobs year-over-year were education (-1,300 jobs) and manufacturing (-200 jobs). Sometimes, these job losses at the turn of the year are an artifact of contract renewals, and thus do not represent actual job losses. Multifamily sales decreased in 2014 compared to 2013, with 13,423 units selling at an average price per unit of $74,875. Sales have continued to fall in 2015, with 2,779 units selling in the first quarter of 2015, compared with 3,703 units selling in the first quarter of 2014. Sales volume also fell from the first quarter of 2014 to the first quarter of 2015, by approximately $10 million. The average sales price per unit, on the other hand, increased to $84,742, from $66,298 one year ago. Since the onset of the Great Recession s recovery, Southern Nevada s multifamily market has done exceedingly well. Vacancy has dropped steadily for the past six years and while rents have increased, they have not increased dramatically. A new apartment s monthly rent is lower than a mortgage payment on a new home, and only about 1 percent higher than the mortgage payment on a resale in Southern Nevada (assuming median home prices and 30-year mortgage at 3.92 percent interest). More importantly, the barrier to entry i.e. the difference between first month-last month-security deposit and the down payment on a home makes renting a very attractive option to most Southern Nevadans, especially considering the beating people s finances have suffered over the past decade. While rents are rising now, they will probably not rise so high as to price people out of the multifamily market in the near future, and the addition of thousands of new multifamily units to the market should help restrain multifamily rents even further. For this reason, we think Southern Nevada s multifamily market will remain strong over the next 24 months. Complex Under Construction Submarket Units Rafael Rivera/Durango Apartments Northwest/Southwest 390 Wigwam Apartments Henderson/GV 324 Durango Apartments Northwest/Southwest 240 TGP at Horizon Ridge Henderson/GV 221 TOTAL 1,175 Sales Data 2015 YTD 2014 2013 2012 2011 Units Sold 2,779 14,019 17,808 21,840 7,554 Average Price Per Unit $84,742 $73,627 $75,600 $65,425 $50,324 Cap Rate* n/a 6.0% 5.7% 7.3% 6.9% *Cap Rate Source: Real Capital Analytics, CoStar and Colliers International While rents are rising now, they will probably not rise so high as to price people out of the multifamily market in the near future. South Valley Apartment Homes 3 Las Vegas Research & Forecast Report Q2 2015 Multifamily Colliers International

215 NORTHEAST Significant Multifamily Sales Activity NORTHWEST 95 15 Evergreen Apartments 228 Units - $7,400,000 $32,000/Unit March 2015 Year Built - 1986 DOWNTOWN 3355 Arville Street 112 Units - $3,600,000 $32,000/Unit March 2015 Year Built - 1977 SUMMERLIN WEST 95 EAST 3535 Cambridge Street 190 Units - $10,700,000 $56,000/Unit May 2015 Year Built - 1974 SOUTHWEST 215 HENDERSON/ GREEN VALLEY 4020 Arville Street 252 Units - $17,100,000 $68,000/Unit May 2015 Year Built - 1985 Grandview Apartments 456 Units - $30,400,000 $67,000/Unit May 2015 Year Built - 1981 Sales Activity Continued Property Name Sale Date Units Price Price/Unit Year Built Russ-Western Plaza Mar 2015 108 $5.0 MM $46,000 1976 Parkview Pointe Mar 2015 193 $6.8 MM $36,000 1972 Cheyenne Pointe Feb 2015 204 $9.1 MM $45,000 1999 Cameron Apartment Homes Jan 2015 317 $16.0 MM $50,000 1981 Sierra Vista Apartments Jan 2015 76 $2.0 MM $27,000 1970 Source: Real Capital Analytics 4 Las Vegas Research & Forecast Report Q2 2015 Multifamily Colliers International

Market Comparisons - Las Vegas Multifamily Market CLASS TOTAL INVENTORY UNITS CURRENT VACANCY RATE PRIOR QTR VACANCY RATE NET ABSORPTION NET ABSORPTION YTD UNITS CURRENT QTR COMPLETIONS YTD UNIT COMPLETIONS UNDER CONSTRUCTION UNITS PLANNED CONSTRUCTION UNITS TOTAL SALES UNITS AVERAGE PRICE PER UNIT AVERAGE RENTAL RATE DOWNTOWN A 2,773 2.1% 2.7% 18 18 - - - 252 - n/a $869 B/C 13,454 2.7% 3.3% 79 177 - - - - - n/a $727 Total 16,227 2.6% 3.2% 97 195 - - - 252 - n/a $751 EAST LAS VEGAS A 6,383 4.5% 4.6% 5 56 - - - 238 - n/a $859 B/C 8,939 4.3% 4.8% 41 96 - - - - 705 $86,312 $754 Total 15,322 4.4% 4.7% 46 152 - - - 238 705 $86,312 $797 HENDERSON/GREEN VALLEY A 18,787 6.7% 7.1% 88 201 110 110 545 1,924 - n/a $1,090 B/C 8,068 7.4% 7.9% 38 (19) - - - - 674 $134,974 $955 Total 26,855 6.9% 7.4% 126 182 110 110 545 1,924 674 $134,974 $1,049 NORTH LAS VEGAS A 13,042 6.1% 6.1% 40 129 - - - 792 - n/a $916 B/C 9,552 5.6% 6.3% 71 50 - - - - 144 $45,139 $734 Total 22,594 5.9% 6.2% 111 179 - - - 792 144 $45,139 $839 NORTHEAST A 2,172 4.9% 4.7% (4) (25) - - - 96 - n/a $797 B/C 6,643 9.4% 10.3% 61 87 - - - - 221 $42,986 $706 Total 8,815 8.3% 9.0% 57 62 - - - 96 221 $42,986 $728 NORTHWEST/SOUTHWEST A 16,344 5.4% 4.9% 160 225 - - 630 693 - n/a $1,134 B/C 5,452 3.1% 3.0% (3) 30 - - - - - n/a $1,011 Total 21,796 4.8% 4.5% 157 255 - - 630 693 - n/a $1,104 UNIVERSITY A 2,180 2.2% 3.4% 25 12 - - - - - n/a $975 B/C 12,321 5.4% 6.0% 77 3 - - - - 191 $55,890 $661 Total 14,501 4.9% 5.6% 102 15 - - - - 191 $55,890 $744 WEST CENTRAL A 5,671 2.9% 3.2% 20 38 - - - 408 - n/a $953 B/C 6,860 1.3% 1.7% 30 38 - - - - 844 $67,536 $732 Total 12,531 2.0% 2.4% 50 76 - - - 408 844 $67,536 $832 MARKET TOTAL A 67,352 5.3% 5.4% 352 654 110 110 1,175 4,403 - n/a $1,011 B/C 71,289 4.8% 5.4% 394 462 - - - - 2,779 $84,742 $774 Total 138,641 5.1% 5.4% 746 1,116 110 110 1,175 4,403 2,779 $84,742 $889 QUARTERLY COMPARISON AND TOTALS Q1-15* 138,641 5.1% 5.4% 746 1,116 110 110 1,175 4,403 2,779 $84,742 $889 Q4-14 138,531 5.4% 5.2% 370 1,549 170 511 1,712 5,180 3,572 $82,458 $878 Q3-14 138,361 5.2% 5.5% 348 1,179-341 1,556 3,244 3,886 $70,279 $873 Q2-14 138,361 5.5% 5.7% 608 831 255 341 1,556 3,244 2,262 $84,836 $866 Q1-14 138,106 5.7% 5.9% 223 223 86 86 1,355 3,546 3,703 $66,298 $859 Q4-13 138,020 5.9% 6.0% 186 1,910 86 584 1,241 4,197 6,025 $94,252 $858 * Most recent quarter of data Source: REIS Sales Data provided by Colliers International 5 Las Vegas Research & Forecast Report Q2 2015 Multifamily Colliers International

Research & Forecast Report LAS VEGAS MEDICAL OFFICE Q2 2015 Off To A Good Start > > The medical office market has shown improvement for three consecutive quarters > > Lower vacancy rates have been coupled with increasing rents > > Better performance is driven by more health care jobs Southern Nevada s medical office market continued to recover in the second quarter of 2015, though only narrowly. Net absorption was only 16,340 square feet, but was enough to bring vacancy down to 17.4 percent from last quarter s 17.7 percent. New completions remained nil, and no new medical office product is either planned or under construction in the market. The asking rental rate for medical office increased again to $2.15 per square foot (psf) on a full service gross (FSG) basis. Market Indicators Relative to prior period Market Q2 2015 Market Q3 2015* VACANCY NET ABSORPTION COMPLETIONS RENTAL RATE *Projected Historical Vacancy Rates and Rental Rates 20.0% 19.0% 18.0% 17.0% 16.0% 15.0% 14.0% 13.0% 12.0% $2.16 $2.15 $2.14 $2.13 $2.12 $2.11 $2.10 $2.09 $2.08 Summary Statistics Q2 2015 Las Vegas Market Q2-2015 Q1-2015 Q2-2014 Vacancy Rate 17.4% 17.7% 17.8% Asking Rent (PSF, FSG) $2.15 $2.14 $2.15 Net Absorption YTD (SF) 16,340 78,372-61,189 New Completions YTD (SF) 0 0 0 11.0% 10.0% 2 Q 2013 3 Q 2013 4 Q 2013 1 Q 2014 2 Q 2014 3 Q 2014 4 Q 2014 1 Q 2015 2 Q 2015 $2.07 $2.06 Overall Asking Rents Per Square Foot Previous Quarter Current Quarter Class A $2.62 $2.65 Southern Nevada s medical office market continued to recover in the second quarter of 2015, though only narrowly. Class B $2.21 $2.22 Class C $1.71 $1.69

Southern Nevada s medical office job market improved in April 2015 (the latest month of data available) compared with April 2014, adding approximately 650 jobs in the past twelve months. Most of these additional jobs have impacted Class C projects. Unemployment in the Las Vegas-Paradise MSA stood at 7.1 percent as of April 2015, down from 8.0 percent in April 2014. Since April 2014, total employment in Southern Nevada has increased by 34,600 jobs. Taxable spending on healthcare in Clark County this quarter increased by 49.3 percent in the first quarter of 2015 (the most recent quarter of data) compared to one year ago. While this seems impressive at first, this jump is due primarily to a correction of negative $3.1 million in hospitals in February 2015, as reported by the Nevada Department of Taxation. In March 2015, spending on ambulatory health care service increased by 10.2 percent on a year-over-year basis. Nursing and residential care facilities saw spending rise by 2.9 percent over the same period, while hospital spending increased by 37.0 percent yearover-year. Historical Net Absorption vs. Completions 100,000 50,000 0-50,000-100,000-150,000 2 Q 2013 3 Q 2013 4 Q 2013 Net Absorption 1 Q 2014 2 Q 2014 3 Q 2014 4 Q 2014 Completions 1 Q 2015 2 Q 2015 The medical office market continues to lack new development. Given the continued high vacancy in medical office, this makes sense. However, the medical office market may be lacking office space designed for the new ways that health care is being delivered. The last time medical office space was completed in Southern Nevada was four years ago, when 57,600 square feet was added to inventory. Since then, net absorption has totaled negative 138,051 square feet and vacancy has increased from 14.8 percent to 17.4 percent. Healthcare Jobs vs. Occupancy Rate 7,000 6,000 5,000 Sales (Units) vs. Price Per Unit $100,000 $90,000 $80,000 Vacancy in medical office space decreased in the second quarter of 2015 to 17.4 percent, from 17.7 percent, in the first quarter of 2015. Vacancy is lower now than in the second quarter of 2014 when it stood at 17.8 percent. The highest vacancy rates posted in the second quarter of 2015 were in the Southwest (33.9 percent), Airport (28.7 percent), Downtown (23.9 percent, up from 10.2 percent last quarter) and East Las Vegas (21.3 percent) submarkets. Henderson boasted the lowest vacancy rate in the Valley at 12.4 percent, followed closely by Northwest s 12.8 percent. Vacancy increased in the Downtown, East Las Vegas, Northwest and Southwest submarkets this quarter, highlighting the precariousness of the current medical recovery; while vacancy decreased in Henderson and West Central. 4,000 3,000 2,000 1,000 0 4 Q 2013 1 Q 2014 2 Q 2014 3 Q 2014 4 Q 2014 1 Q 2015 Total Sales (Units) Healthcare Services Taxable Spending Average Price Per Unit $70,000 $60,000 $50,000 $40,000 $30,000 Southern Nevada posted 16,340 square feet of net absorption in the second quarter of 2015, about one-fifth of the net absorption recorded last quarter. Strong net absorption one quarter followed by weak net absorption the next is not new for the medical office market, and thankfully the weak net absorption this quarter was still positive. This quarter s positive net absorption was the third consecutive quarter of positive net absorption. The last time such a deed was accomplished was the four quarters of positive net absorption recorded from the fourth quarter of 2009 to the fourth quarter of 2010. $30,000,000 $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $0 1 Q 2013 2 Q 2013 3 Q 2013 4 Q 2013 1 Q 2014 2 Q 2014 3 Q 2014 4 Q 2014 1 Q 2015 Source: Nevada Department of Taxation 2 Las Vegas Research & Forecast Report Q2 2015 Medical Office Colliers International

The weighted average asking rental rate for medical office space increased in the second quarter of 2015, reaching $2.15 per square foot (psf) on a full service gross (FSG) basis. Asking rents are the same as they were one year ago, in the second quarter of 2014. In leases we have tracked over the past two years, effective lease rates for medical office leases have averaged 97.7 percent of asking lease rates. This is not a tremendous gap, and suggests that medical office asking lease rates are just about right. This gap between asking and effective lease rates has been closing over the past four years, from 3.3 percentage points in 2012 to 2.3 percentage points over the last four quarters. The Valley s highest average asking rate was in the Northwest submarket, at $2.57 psf FSG, an increase for that submarket of $0.01 from one quarter ago. The lowest average asking rate was in the West Central submarket, at $1.76 psf, a reduction of $0.01 from one quarter ago. Investment sales of medical office space have strengthened in 2015 since the first quarter. In the first five months of 2015, medical investment sales volume equaled $50.8 million in five sales totaling 127,600 square feet. This gives an average sales price of $398.42 per square foot. Two sales have driven this very high average sales price, the sale of a 60,000 square foot Class A medical office building in the first quarter, which had an average sales price of $341.67, and the sale of a V.A. medical building in the Northwest submarket with an average sales price of $711.44. Outside of these sales, sales prices have ranged between $100.00 psf to $138.80 psf. It is worth considering that Southern Nevada s medical office market and Southern Nevada s health care industry are two different creatures, with a bit of overlap between them. Take employment as an example. Overall healthcare employment has increased by 2,600 jobs over the past twelve months, but we have calculated only 650 of these new jobs have appeared in medical office buildings in our database. Given this rise in employment, the sum of 25,476 square feet of net absorption over the past four quarters does not look too bad. We think that if health care employment continues to increase in 2015, medical office vacancy will continue to decrease as well. It is worth considering that Southern Nevada s medical office market and Southern Nevada s health care industry are two different creatures, with a bit of overlap between them. Summerlin Surgery Center & MOB 3 Las Vegas Research & Forecast Report Q2 2015 Medical Office Colliers International

215 NORTH LAS VEGAS Significant Medical Office Sales Activity Cheyenne Avenue 95 3,700 - $2,000,000 $543.04/SF October 2014 NORTHWEST 15 Class C The Parkway SUMMERLIN WEST CENTRAL DOWN TOWN EAST LAS VEGAS 129,000 - $18,165,000 $141.07/SF October 2014 Class A Pinto Lane 10,000 SF - $1,388,000 95 $138.80/SF April 2015 Class C AIRPORT Horizon Ridge Medical Corporate 215 28,000 SF - $4,420,000 $155.94/SF October 2014 SOUTHWEST HENDERSON Class C Wigwam Parkway 60,000 - $20,500,000 $341.67/SF February 2015 Class A Significant Lease Activity Property Name Lease Date Lease Term Size Lease Rate Tenant MacFarlane Medical Center May 2015 120 months 13,000 SF $1.55 NNN Physicians Nevada Cancer Institute Campus Mar 2015 91 months 8,000 SF $2.40 MG Non-Medical The Parkway Mar 2015 132 months 20,000 SF $0.93 NNN Laboratory Thomas & Mack Medical Plaza Dec 2014 84 months 15,000 SF $2.97 NNN Physicians The Parkway Dec 2014 72 months 6,000 SF $1.99 NNN Prosthetics 4 Las Vegas Research & Forecast Report Q2 2015 Medical Office Colliers International

Market Comparisons - Las Vegas Medical Office Market TYPE TOTAL INVENTORY SF DIRECT VACANT SF DIRECT VACANCY RATE SUBLEASE SUBLEASE VACANCY VACANT SF RATE TOTAL VACANT SF VACANCY RATE CURRENT QUARTER VACANCY RATE PRIOR QUARTER NET ABSORPTION CURRENT QTR SF NET ABSORPTION YTD SF COMPLETIONS CURRENT QTR SF COMPLETIONS YTD SF UNDER CONSTRUCTION SF PLANNED CONSTRUCTION SF WEIGHTED AVG ASKING RENTAL RATE AIRPORT SUBMARKET A - - n/a - n/a - n/a n/a - - - - - - $- B - - n/a - n/a - n/a n/a - - - - - - $- C 38,000 10,900 28.7% - 0.0% 10,900 28.7% 28.7% - - - - - - $2.20 Total 38,000 10,900 28.7% - 0.0% 10,900 28.7% 28.7% - - - - - - $2.20 DOWNTOWN SUBMARKET A 65,000-0.0% - 0.0% - 0.0% 0.0% - - - - - - $- B 227,301 82,643 36.4% - 0.0% 82,643 36.4% 12.1% (55,064) (52,064) - - - - $1.97 C 75,531 5,398 7.1% - 0.0% 5,398 7.1% 13.2% 4,602 4,602 - - - - $1.85 Total 367,832 88,041 23.9% - 0.0% 88,041 23.9% 10.2% (50,462) (47,462) - - - - $1.96 EAST LAS VEGAS SUBMARKET A - - n/a - n/a - n/a n/a - - - - - - $- B 669,264 150,871 22.5% - 0.0% 150,871 22.5% 21.9% (3,985) 533 - - - - $2.08 C 574,080 113,414 19.8% 5,192 0.9% 118,606 20.7% 17.5% (12,665) (12,665) - - - - $1.60 Total 1,243,344 264,285 21.3% 5,192 0.4% 269,477 21.7% 19.9% (16,650) (12,132) - - - - $1.87 HENDERSON SUBMARKET A 190,000 31,126 16.4% - 0.0% 31,126 16.4% 16.4% 0 8,435 - - - - $3.14 B 595,537 105,724 17.8% 2,515 0.4% 108,239 18.2% 23.6% 32,316 50,352 - - - - $2.23 C 465,160 18,640 4.0% - 0.0% 18,640 4.0% 2.9% -5,174 3,936 - - - - $2.03 Total 1,250,697 155,490 12.4% 2,515 0.2% 158,005 12.6% 14.8% 27,142 62,723 - - - - $2.39 NORTH LAS VEGAS SUBMARKET A - - n/a - n/a - n/a n/a - - - - - - $- B 43,921 4,776 10.9% - 0.0% 4,776 10.9% 10.9% - 4,437 - - - - $2.15 C 110,668 17,900 16.2% - 0.0% 17,900 16.2% 16.2% - - - - - - $2.00 Total 154,589 22,676 14.7% - 0.0% 22,676 14.7% 14.7% - 4,437 - - - - $2.03 NORTHWEST SUBMARKET A 807,173 176,081 21.8% - 0.0% 176,081 21.8% 26.9% 40,999 19,839 - - - - $2.66 B 1,031,717 79,285 7.7% - 0.0% 79,285 7.7% 3.9% (46,403) (39,883) - - - - $2.42 C 199,215 5,649 2.8% - 0.0% 5,649 2.8% 2.8% - 2,221 - - - - $1.78 Total 2,038,105 261,015 12.8% - 0.0% 261,015 12.8% 12.9% (5,404) (17,823) - - - - $2.57 SOUTHWEST SUBMARKET A 115,300 43,944 38.1% - 0.0% 43,944 38.1% 36.4% (2,031) 11,600 - - - - $2.28 B 380,926 151,094 39.7% 4,440 1.2% 155,534 40.8% 39.1% (2,118) 21,931 - - - 131,680 $2.41 C 259,170 61,351 23.7% - 0.0% 61,351 23.7% 23.7% - (7,116) - - - - $1.60 Total 755,396 256,389 33.9% 4,440 0.6% 260,829 34.5% 33.4% (4,149) 26,415 - - - 131,680 $2.19 WEST CENTRAL SUBMARKET A - - n/a - n/a - n/a n/a - - - - - - $- B 291,027 27,833 9.6% - 0.0% 27,833 9.6% 13.8% 12,253 12,253 - - - - $2.17 C 852,482 132,323 15.5% 8,098 0.9% 140,421 16.5% 22.4% 53,610 66,301 - - - - $1.67 Total 1,143,509 160,156 14.0% 8,098 0.7% 168,254 14.7% 20.2% 65,863 78,554 - - - - $1.76 MARKET TOTAL A 1,177,473 251,151 21.3% - 0.0% 251,151 21.3% 24.6% 38,968 39,874 - - - - $2.65 B 3,239,693 602,226 18.6% 6,955 0.2% 609,181 18.8% 16.9% (63,001) (2,441) - - - 131,680 $2.22 C 2,574,306 365,575 14.2% 13,290 0.5% 378,865 14.7% 16.0% 40,373 57,279 - - - - $1.69 Total 6,991,472 1,218,952 17.4% 20,245 0.3% 1,239,197 17.7% 17.9% 16,340 94,712 - - - 131,680 $2.15 QUARTERLY COMPARISON AND TOTALS Q2-15 6,991,472 1,218,952 17.4% 20,245 0.3% 1,239,197 17.7% 17.9% 16,340 94,712 - - - 131,680 $2.15 Q1-15 6,991,472 1,235,292 17.7% 15,002 0.2% 1,250,294 17.9% 19.0% 78,372 78,372 - - - 131,680 $2.14 Q4-14 6,991,472 1,313,664 18.8% 15,002 0.2% 1,328,666 19.0% 19.5% 34,798 (98,115) - - - 131,680 $2.13 Q3-14 6,991,472 1,348,462 19.3% 15,002 0.2% 1,363,464 19.5% 18.0% (104,034) (132,913) - - - - $2.15 Q2-14 6,991,472 1,244,428 17.8% 12,611 0.2% 1,257,039 18.0% 17.1% (61,189) (28,879) - - - - $2.15 Q1-14 6,991,472 1,183,239 16.9% 9,711 0.1% 1,192,950 17.1% 17.4% 32,310 32,310 - - - - $2.09 Q4-13 6,991,472 1,215,549 17.4% 1,224 0.0% 1,216,773 17.4% 18.5% 74,681 (117,966) - - - - $2.09 5 Las Vegas Research & Forecast Report Q2 2015 Medical Office Colliers International

Research & Forecast Report LAS VEGAS HOTEL Q2 2015 Inventory Down, Occupancy Up > > Southern Nevada s hospitality market continues to re-tool for a new generation of visitors > > Room inventory is shrinking, driving up occupancy in remaining projects > > Hospitality sales continue to be sporadic Southern Nevada s hospitality market continued to impress in the second quarter of 2015. Visitor volume for the first four months of 2015 stood at 13.7 million people, approximately even with visitor volume in the first four months of 2014, and putting Southern Nevada on track to host more than 40 million people in 2015. While room occupancy was down in April 2015 compared to April 2014, ADR (average daily room rate) and RevPAR (revenue per available room) both increased year-over-year. The first four months of 2015 have also experienced a rise in gaming revenue, convention attendance and employment in the leisure and hospitality sector, though passenger traffic through McCarran International Airport is down slightly. Market Indicators Relative to prior period Market Q2 2015 Market Q3 2015* Room Inventory Room Occupancy Average Daily Rate Revenue Per Available Room *Projected Revenue Per Available Room (RevPar) $120.00 $100.00 $80.00 $60.00 $40.00 RevPAR Summary Statistics Q2 2015 Las Vegas Market Q2-2015 Q1-2015 Q2-2014 Room Inventory 149,552 152,540 150,975 Room Occupancy 88.8% 85.0% 89.5% Average Daily Rate $118.51 $124.46 $119.75 Revenue Per Available Room $105.24 $105.79 $107.17 $20.00 $0.00 2 Q 2013 3 Q 2013 4 Q 2013 1 Q 2014 2 Q 2014 3 Q 2014 4 Q 2014 1 Q 2015 2 Q 2015

The improvement in gaming revenue over 2014, however slight, is welcome news. While visitor volume and most other measures of the hospitality economy had recovered nicely since the Great Recession, gaming revenue had remained stubbornly below par. Fortunately, visitors to Southern Nevada did increase their spending on non-gaming activities, including shows, shopping and dining. This change in spending patterns may be due to the Great Recession, with visitors being more cautious and conservative and preferring entertainment and dining to gaming, or it could be a generational change, with the Gen-Xers and Millennials showing less interest in gaming than did the Baby Boomers and Bob Hope Generation. Either way, it does not appear to have especially hurt hospitality operators. Las Vegas s major gaming operators appear to have solid pricing power, with MGM absorbing increases in resort fees in 2014 without difficulty. Room inventory in Southern Nevada increased by 1,955 rooms in 2014, the region s largest increase since 2010. So far in 2015, though, the trend is closures as a prelude to redevelopment. In 2015, room inventory has decreased by 3,190 rooms, due primarily to the closures of the Riviera and Clarion properties for demolition and redevelopment. The Genting Group s Resorts World Las Vegas project has started preliminary construction this year, with completion expected by 2017. This should increase room inventory by 3,500 rooms. While Southern Nevada s previous hospitality boom came as a result of massive new resort developments, beginning with the Mirage, the current recovery and expansion of the hospitality market appears to be driven by reinvention, redevelopment and diversification of the entertainment landscape in Southern Nevada. Recent non-hospitality completions on the Strip and in the Resort Corridor include the LINQ retail district and High Roller attraction, the new three story mall in front of the Treasure Island hotel, and two new zip-line attractions on the Strip and in Downtown. Other coming attractions include a $375 million MGM Resorts International Arena behind New York-New York and Monte Carlo, the 1,100 room Alon at the old site of the New Frontier, and an expansion of the convention center facilities at the Mandalay Bay. The LVCVA is currently undertaking a 750,000 square foot expansion of the convention center to keep Southern Nevada at the Visitor Volume 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 Visitor Volume 0 2 Q 2013 3 Q 2013 4 Q 2013 1 Q 2014 2 Q 2014 3 Q 2014 4 Q 2014 1 Q 2015 2 Q 2015 Sales vs. Price Per Unit 7,000 6,000 5,000 4,000 3,000 2,000 1,000 Sales vs. Price Per Unit 0 $0 2 Q 20133 Q 20134 Q 2013 1 Q 2014 2 Q 20143 Q 20144 Q 20141 Q 2015 2 Q 2015 Sales (Units) Average Price Per Unit $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 Market Health Data Point 2015 YTD* 2014 2013 2012 2011 Visitor Volume (Millions) 13.7 41.6 39.9 39.7 38.9 Room Occupancy 86.9% 86.8% 84.3% 84.4% 83.8% ADR $121.49 $116.48 $110.64 $108.02 $104.97 RevPAR $105.51 $101.05 $93.27 $91.17 $87.96 Convention Attendance (Millions) 2.29 5.17 5.11 4.93 4.87 Passengers McCarran Int l (Millions) 13.6 42.9 41.8 41.7 41.5 Gaming Revenue (Clark County, Billions) $3.2 $9.6 $10.0 $9.4 $9.2 Gaming Revenue ( Strip, Billions) $2.1 $6.4 $6.5 $6.2 $6.1 Data from Las Vegas Convention & Visitors Authority * Data from January to April 2 Las Vegas Research & Forecast Report Q2 2015 Hospitality Colliers International

forefront of convention destinations in the United States. In all, we expect that approximately $4.7 billion will be spent on Southern Nevada s hospitality market between 2014 and 2016, before another $4 billion is spent developing the first phase of Resorts World Las Vegas in 2017. A total of 2,787 rooms sold in Southern Nevada in the second quarter of 2015, including 2,481 rooms in the Hooters Casino Hotel at a price of $101,000 per room, and 306 rooms in two limited service properties located in East Las Vegas and South Las Vegas at an average price of $39,222 per room. It has been announced that the 1,785 room Tropicana Las Vegas is being purchased by Penn National Gaming, with the sale to be finalized in the fourth quarter of 2015. The first phase after a recession ends is recovery. After recovery comes, one hopes, growth. In the case of Southern Nevada s hospitality market, recovery is being followed by reinvention. This is actually nothing new for Las Vegas. The resorts of the 1950 s and 1960 s, with their large set-backs and famously inexpensive shrimp cocktails made way for a more corporate Las Vegas in the 1980 s and 1990 s, with larger, themed resorts and attached shopping malls. The emphasis on gaming was reduced then, and is being reduced even more now as Las Vegas changes again to serve a new generation of vacationers. Hospitality Sales* Year Volume Units Sold Price/Unit 2015 YTD ** $685 MM 5,387 $127,000 2014 $1,864 MM 7,749 $241,000 2013 $55 MM 1,129 $49,000 2012 $121 MM 2,613 $46,000 2011 $3,009 MM 7,369 $408,000 2010 $858 MM 8,883 $97,000 2009 $1,226 MM 4,913 $249,000 2008 $86 MM 889 $97,000 * Only includes properties with 100 or more units, arm s-length sales ** Data from January to April Recent non-hospitality completions on the Strip and in the Resort Corridor include the LINQ retail district and High Roller attraction, the new three story mall in front of the Treasure Island hotel, and two new zip-line attractions on the Strip and in Downtown. 3 Las Vegas Research & Forecast Report Q2 2015 Hospitality Colliers International

215 Significant Hotel Sale Activity NORTHWEST NORTH LAS VEGAS Tropicana Hotel & Casino 95 The Strip - $360,000,000 1,497 Units - $240,000/Unit May 2015 15 Casino Hotel Hyatt Place - Las Vegas Resort Corridor - $19,000,000 SUMMERLIN WEST CENTRAL DOWNTOWN RESORT CORRIDOR EAST LAS VEGAS 202 Units - $94,000/Unit February 2015 Full Service 95 Crestwood Suites - Flamingo East Las Vegas - $6,000,000 THE STRIP 150 Units - $39,000/Unit May 2015 Limited Service AIRPORT 215 Hooters Casino Hotel Resort Corridor - $70,000,000 SOUTHWEST HENDERSON 696 Units - $101,000/Unit May 2015 Casino Hotel SOUTH LAS VEGAS Crestwood Suites - Las Vegas South Las Vegas - $6,000,000 156 Units - $39,000/Unit May 2015 Limited Service Sale Activity Continued Property Name Sale Date Units Price Price/Unit Submarket Property Type Townplace Suites Feb 2015 228 $20,000,000 $88,000 Henderson Limited Service Riviera Hotel * Feb 2015 2,100 $182,500,000 $87,000 Strip Casino Hotel Hyatt Place-Las Vegas Feb 2015 202 $18,300,000 $91,000 Resort Corridor Full Service Stay Suites of America Dec 2014 128 $5,375,000 $42,000 West Vegas Limited Service Clarion Casino * Sep 2014 202 $22,500,000 $111,000 Resort Corridor Casino Hotel * Indicates a redevelopment site 4 Las Vegas Research & Forecast Report Q2 2015 Hospitality Colliers International

Market Comparisons - Las Vegas Hospitality Market TYPE TOTAL INVENTORY UNITS SOLD SALES VOLUME PRICE/UNIT COMPLETIONS THIS QUARTER COMPLETIONS YTD PLANNED DOWNTOWN CAS 7,646 - $0 n/a - - - FS - - $0 n/a - - - LS 982 - $0 n/a (74) (74) - Total 8,628 - $0 n/a (74) (74) - LAS VEGAS STRIP CAS 83,743 1,497 $360,000,000 $240,481 (2,075) (2,075) 3,500 FS 5,817 - $0 n/a - - - LS 581 - $1,950 n/a - - - Total 90,141 1,497 $360,001,950 $240,482 (2,075) (2,075) 3,500 RESORT CORRIDOR CAS 10,231 696 $70,000,000 $100,575 - (202) - FS 5,414 - $0 n/a - - - LS 7,111 - $0 n/a - - - Total 22,756 696 $70,000,000 $100,575 - (202) - AIRPORT CAS - - $0 n/a - - - FS - - $0 n/a - - - LS 986 - $0 n/a - - - Total 986 - $0 n/a - - - EAST LAS VEGAS SUBMARKET CAS 1,914 - $0 n/a - - - FS - - $0 n/a - - - LS 2,571 150 $5,901,639 $39,344 (839) (839) - Total 4,485 150 $5,901,639 $39,344 (839) (839) - HENDERSON SUBMARKET CAS 2,268 - $0 n/a - - - FS 871 - $0 n/a - - - LS 1,480 - $0 n/a - - - Total 4,619 - $0 n/a - - - NORTH LAS VEGAS SUBMARKET CAS 1,030 - $0 n/a - - - FS - - $0 n/a - - - LS 1,611 - $0 n/a - - - Total 2,641 - $0 n/a - - - SOUTH LAS VEGAS SUBMARKET CAS 2,463 - $0 n/a - - 390 FS 2,704 - $0 n/a - - - LS 1,206 156 $6,098,361 $39,092 - - 134 Total 6,373 156 $6,098,361 $39,092 - - 524 SUMMERLIN SUBMARKET CAS 1,247 - $0 n/a - - - FS 695 - $0 n/a - - - LS 857 - $0 n/a - - - Total 2,799 - $0 n/a - - - WEST CENTRAL SUBMARKET CAS 3,673 - $0 n/a - - - FS - - $0 n/a - - - LS 2,451 - $0 n/a - - - Total 6,124 - $0 n/a - - - MARKET TOTAL CAS 114,215 2,193 $430,000,000 $196,078 (2,075) (2,277) 3,890 FS 15,501 - $0 n/a - - - LS 19,836 306 $12,001,950 $39,222 (913) (913) 134 Total 149,552 2,499 $442,001,950 $176,872 (2,988) (3,190) 4,024 QUARTERLY COMPARISON AND TOTALS Q2-15 149,552 2,499 $442,001,950 $176,872 (2,988) (3,190) 4,024 Q1-15 152,540 2,888 $243,075,470 $84,167 (202) (202) 4,124 Q4-14 152,742 128 $5,375,000 $41,992 0 1,955 4,124 Q3-14 152,742 590 $48,962,292 $82,987 1,767 1,955 4,124 Q2-14 150,975 6,925 $1,799,600,000 $259,870 188 188 5,891 Q1-14 150,787 106 $10,280,211 $96,983 0 0 4,457 5 Las Vegas Research & Forecast Report Q2 2015 Hospitality Colliers International

Research & Forecast Report LAS VEGAS LAND Q2 2015 Interest in Land Increases > > Southwest submarket sees most sale activity > > Asking prices are rising, perhaps too quickly > > Land owners are prepared to wait From 2012 to 2014, Southern Nevada s land market showed marked improvement from one year to another. Sales exploded between 2012 and 2013, and then continued to increase at a slower pace in 2014. So far in 2015, the pace of sales has slowed. At midyear 2015, land sales volume was $262 million, approximately half of the $501 million of sales volume at mid-year 2014. Land sales in the second quarter of 2015 were $91 million, with a total of 324 gross acres sold at an average price of $6.47 per square foot (psf). Market Indicators Relative to prior period Market Q2 2015 Market Q3 2015* NO. SALES ACREAGE SOLD SALES VOLUME Industrial occupancy increased in the second quarter of 2015 to 93.4 percent, a 2.9 percentage point increase over the second quarter of 2014. While industrial developments in 2014 were primarily of buildto-suit properties, speculative properties are on the rise in 2015. A total of 789,000 square feet of industrial space was completed in the first half of 2015 on 50.1 acres. An additional 7.6 million square feet of industrial space is either under construction or planned on 605.43 acres of industrial-zoned land. During the second quarter of 2015, 59.83 acres of industrial land was sold, with total sales volume of $8.3 million. The average sales price of industrial land was $3.18 psf, a decrease from one year ago. PRICE PER SQUARE FOOT *Projected Land Sales Activity 1,400 1,200 1,000 800 $14.00 $12.00 $10.00 $8.00 Commercial occupancy increased in the second quarter of 2015 to 86.9 percent, 0.2 percentage points higher than in the second quarter of 2014. Demand for office and retail product, while still not as strong as for industrial space, appears to be on the rise in 2015. Speculative construction of office and anchored retail projects increased dramatically in 2014, but is now ebbing. The moratorium on zoning changes in the Southwest portion of the Valley has had an impact on slowing development. Completions of commercial product stood at 312,569 square feet in the first half of 2015, occupying 30.9 acres. An additional 1.7 million square feet of commercial product is under construction or planned on 416.6 acres. Hotel occupancy in 2015 averaged 86.9 percent. Hotel occupancy dipped slightly in the first half of 2015 compared to the first half of 2014, when hotel occupancy averaged 88.3 percent. Over 4,000 new rooms are under construction 600 400 200 0 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 Acres Sold Price PSF $6.00 $4.00 $2.00 $0.00