Office Report. Sacramento Valley Second Quarter City, State Year.

Office Report City, State Year Sacramento Valley Second Quarter 2014 Offices in Burlingame, Los Altos, Monterey, Oakland, Palo Alto, Pleasanton, Sacramento, Salinas, San Francisco, San Jose, San Rafael, Santa Rosa, Walnut Creek Broker Lic #00825241

SACRAMENTO Office Market Snapshot Second Quarter 2014 SACRAMENTO OFFICE Economics Indicators Q2 13 Q2 14 Sacramento Employment 963,300 973,300 Sacramento Unemployment 8.4% 6.6% U.S. Unemployment 6.7% 6.3% Market Indicators Q2 13 Q2 14 Overall 15.9% 14.9% Net Absorption SF -69K 238K Under Construction SF 0 0 Average Asking Rent (FS) $1.64 $1.65 Net Absorption/Asking Rent (Full Service) 4Q TRAILING AVERAGE 2 1.5 1 0.5 0-0.5-1 -1.5 2010 2011 2012 2013 2014 Overall 18% 17% 16% 15% 14% 13% 12% 11% 4Q Trailing Net Abs.(MSF) Avg Asking (FS) Historical Average = 16.5% 12-Month Forecast 12-Month Forecast 2010 2011 2012 2013 2014 $1.90 $1.80 $1.70 $1.50 Leasing Momentum Leads to Strong Q2 The Sacramento office market continued to perform well during the second quarter of 2014, with regional vacancy falling to 14.9%, which is the lowest, post-recession vacancy rate the area has seen and the first time vacancy has fallen under 15% in nearly five years. Q2 also recorded 238,000 square feet of occupancy growth, marking the fourth consecutive quarter of occupancy growth in excess of 100.000 square feet. Year to date net absorption figures currently stand at 385,000 square feet. While the private sector has been and continues to be the dominant driver of growth in the area, interestingly enough, the public sector appears to be making a quiet but noticeable reappearance. One of the largest leases of the quarter was signed by CalPers for 77,500 square feet in West Sacramento. Sacramento County also signed a lease for 54,000 square feet in Natomas. In fact, some of the largest leases of the year have been signed by public sector tenants. While it may not be a comeback per se, as many government agencies are still in contraction mode, the reappearance of public sector tenants is definitely encouraging news for the region. At the submarket level, roughly half of the region s submarkets recorded positive growth in Q2, but the majority of those that posted occupancy declines saw negligible levels of negative net absorption. Of the nine submarkets that recorded positive numbers, five of these submarkets had growth in excess of 30,000 square feet. The biggest winner of the quarter was the Point West submarket, which recorded 168,000 square feet of occupancy growth, which is the largest amount of post-recession growth this submarket has seen. The majority of this growth is attributable to Covered California taking occupancy of the 132,000 square feet that they signed for in Q1. in this trade area currently stands at 20.8%, which is the lowest recorded vacancy rate Point West has seen since Q3 2008. Point West was particularly hard-hit by the recession and has since struggled to recover the vacancy rate here peaked at 32.2% at the beginning of 2012 and has consistently hovered between 27 and 3 since. Other submarkets

SACRAMENTO Office Market Snapshot Second Quarter 2014 that recorded over 30,000 square feet of growth include Roseville/Rocklin, Auburn/Lincoln and Highway 50/Rancho Cordova. Average Asking Rate by Submarket (Full Service) DOWNTOWN STILL THE HIGHEST RENT IN TOWN $2.25 $2.09 Rental rates continue to remain stagnant, despite strong activity and decreased vacancy. Rental rate growth is not expected until vacancy edges closer to the threshold. The good news for local landlords, however, is that the market is definitely trending this way though we think it will be at least another 18 to 24 months before vacancy levels become a possibility. So far, 2014 has experienced a good momentum of leasing activity and $1.75 Full Service $1.50 $1.25 $1.00 $1.84 $1.75 $1.74 $1.73 $1.71 $1.69 $1.66 $1.66 $1.65 $1.58 $1.53 $1.53 $1.47 $1.46 $1.40 $1.39 $1.35 $1.22 DT ES CC FOL MID NAT DW PW WTT RR RLNH H50 HF AL EDH CHO WS SS CFO We are seeing a slight uptick in larger requirements as well... Availabilities by Size Segment 5-10K SPACES INCREASE IN DEMAND notably, a few of the leases inked this year were made in buildings that have been close to or fully vacant since the recession, otherwise known as zombie buildings. Many of these zombie buildings were delivered and put onto the market right as the recession started, just as the tenant base that could possibly fill them began to contract. And though the majority of demand that we are tracking has been primarily for smaller (20,000 square feet or less) spaces, we are seeing a slight uptick in larger requirements as well. If these requirements translate into actual deals (and many, if not most of them, will), expect vacancy to fall further, at least into the low 14% or possibly even into the higher 13% range by the end of the year. Average Asking Rate by Class (Full Service) RENTAL RATES REMAIN STAGNANT $2.50 285 1,455 169 3,245 Listings 1,336 0-5K 5-10K 10-20K 20K+ Outlook $2.40 $1.90 falls to 14.9% - the first time vacancy has fallen under 15% in five years $2.30 $1.80 The private sector continues to drive demand, but the public sector is making a reappearance Class A $2.20 $2.10 $1.70 Class B Rental rates remain stagnant. Leasing activity is strong, larger blocks of space are beginning to see an increase in demand. will continue to fall, possibly hitting the low 14% range by the end of the year $1.90 2009 2010 2011 2012 2013 2014 $1.50 Class A Class B 2

SACRAMENTO Office Market Snapshot Second Quarter 2014 Cassidy Turley Office Market Snapshot Sacramento Second Quarter 2014 TOTAL BLDGS INVENTORY SUBLET VACANT DIRECT VACANT VACANCY RATE CURRENT NET ABSORPTION YTD NET ABSORPTION UNDER CONSTRUCTION AVERAGE ASKING RENT (ALL Classes) AVERAGE ASKING RENT (CLASS A) Submarket Downtown Sacramento 217 18,880,893 30,606 2,181,788 11.7% (59,983) (20,834) 0 $2.09 $2.61 Auburn / Lincoln 66 1,358,736 0 174,272 12.8% 37,627 42,402 0 $1.47 N/A Campus Commons 41 1,221,147 0 255,763 20.9% 9,206 (3,861) 0 $1.75 N/A Carmichael / Fair Oaks 46 979,245 0 91,488 9.3% 3,710 (13,998) 0 $1.22 N/A Citrus Heights / Orangevale 52 1,437,275 0 195,384 13.6% (5,472) (14,297) 0 $1.40 N/A Davis / Woodland 78 1,975,100 0 160,919 8.1% (14,983) (3,783) 0 $1.69 $2.10 East Sacramento 32 1,840,496 0 234,566 12.7% 7,215 9,724 0 $1.84 N/A El Dorado Hills 71 1,646,430 12,207 312,152 19.7% 8,535 26,638 0 $1.46 Folsom 102 4,777,945 28,433 528,573 11.7% (11,225) 1,350 0 $1.74 $1.92 Highway 50 / Rancho Cordova 297 17,219,679 72,789 2,435,860 14.6% 37,389 64,029 0 $1.53 $1.80 Howe Ave / Fulton Ave 78 2,459,066 0 621,138 25.3% (4,173) (48,642) 0 $1.53 $1.85 Midtown Sacramento 101 3,705,068 0 237,103 6.4% 30,914 15,601 0 $1.73 $2.75 Natomas / Northgate 110 6,406,363 0 1,401,166 21.9% (33,549) (41,696) 0 $1.71 $1.91 Point West 50 2,706,640 3,000 561,083 20.8% 168,410 182,885 0 $1.66 $1.84 Rio Linda / North Highlands 29 1,009,080 0 302,855 30. 0 (1,258) 0 $1.58 N/A Roseville / Rocklin 260 10,348,117 3,896 1,861,439 18. 120,904 237,979 0 $1.65 $1.82 South Sacramento 97 3,033,964 0 438,965 14.5% (2,238) 9,344 0 $1.35 N/A Watt Ave 49 2,323,453 1,891 294,781 12.8% (2,150) (5,721) 0 $1.39 N/A West Sacramento 36 1,983,136 21,272 241,491 13.2% (51,513) (51,192) 0 $1.67 $1.72 Office Class Breakdown Class A 187 25,974,397 122,715 3,331,911 13.3% 35,690 132,817 0 $2.06 Class B 877 39,188,395 49,488 6,254,235 16.1% 175,603 263,492 0 $1.65 TOTAL 1,812 85,312,023 174,094 12,530,786 14.9% 237,624 384,670 0 $1.65 $2.06 Key Lease Transactions Q2 14 PROPERTY SF TENANT LANDLORD TRANSACTION TYPE SUBMARKET 710 Riverpoint Cir 77,490 CalPers Buzz Oates New Lease West Sacramento 2101 Arena Blvd 54,234 Sacramento County Realty Advisors, Inc. New Lease Natomas/Northgate 1104 Investment Blvd 37,352 Blue Cross & Blue Shield LBA Realty New Lease El Dorado Key Investment Sale Transactions Q2 14 PROPERTY SF BUYER SELLER SALE PRICE SUBMARKET 2480 Natomas Park Dr 52,300 2480 Natomas Park Dr, LLC 42 Natomas Park Dr, LLC $4,200,000 Natomas/Northgate 1900 Point West Way 56,686 Dan Caputo Company Vertical Equity Partners $4,036,818 Point West 1700 Prairie City Rd 12,149 Yang Family Revocable Trust Folsom Corners, LLC $3,700,000 Folsom 3

SACRAMENTO Office Market Snapshot Second Quarter 2014 Office Submarkets Sacramento About Cassidy Turley Cassidy Turley is a leading commercial real estate services provider with more than 4,000 professionals in more than 60 offices nationwide. With headquarters in Washington, DC, the company represents a wide range of clients from small businesses to Fortune 500 companies, from local non-profits to major institutions. The firm completed transactions valued at $25.8 billion in 2013, manages approximately 400 million square feet on behalf of institutional, corporate and private clients and supports more than 24,000 domestic corporate services locations. Cassidy Turley serves owners, investors and tenants with a full spectrum of integrated commercial real estate services including capital markets, tenant representation, corporate services, project leasing, property management, project and development services, and research and consulting. Cassidy Turley enhances its global service delivery outside North America through a partnership with GVA, giving clients access to commercial real estate professionals in 65 international markets. Please visit for more information about Cassidy Turley. Abby Friedman Research Analyst 520 Capitol Mall 5th Floor Sacramento, CA 95814 Tel: 916.375.1500 Fax: 916.376.8840 Managing Editor: Garrick Brown Director of Research Garrick.Brown@cassidyturley.com The information contained within this report is gathered from multiple sources considered to be reliable. The information may contain errors or omissions and is presented without any warranty or representations as to its accuracy. Copyright 2014 Cassidy Turley. All rights reserved. 4

Market Summary Submarket Building Vacant Space Rate Avg. Asking Sq.Ft. Direct Sublease Total Q2-14 Q2-13 (FS) Downtown Sacramento 18,880,893 2,181,788 30,606 2,212,394 11.7% 11.5% $2.09 Auburn / Lincoln 1,358,736 174,272 0 174,272 12.8% 16.6% $1.47 Campus Commons 1,221,147 255,763 0 255,763 20.9% 21.2% $1.75 Carmichael / Fair Oaks 979,245 91,488 0 91,488 9.3% 12. $1.22 Citrus Heights / Orangevale 1,437,275 195,384 0 195,384 13.6% 14.1% $1.40 Davis / Woodland 1,975,100 160,919 0 160,919 8.1% 8.6% $1.69 East Sacramento 1,840,496 234,566 0 234,566 12.7% 13.1% $1.84 El Dorado Hills 1,646,430 312,152 12,207 324,359 19.7% 23. $1.46 Folsom 4,777,945 528,573 28,433 557,006 11.7% 10.8% $1.74 Highway 50 / Rancho Cordova 17,219,679 2,435,860 72,789 2,508,649 14.6% 15.7% $1.53 Howe Ave / Fulton Ave 2,459,066 621,138 0 621,138 25.3% 23.9% $1.53 Midtown Sacramento 3,705,068 237,103 0 237,103 6.4% 8.9% $1.73 Natomas / Northgate 6,406,363 1,401,166 0 1,401,166 21.9% 21.3% $1.71 Point West 2,706,640 561,083 3,000 564,083 20.8% 26.4% $1.66 Rio Linda / North Highlands 1,009,080 302,855 0 302,855 30. 31.1% $1.58 Roseville / Rocklin 10,348,117 1,861,439 3,896 1,865,335 18. 21.2% $1.65 South Sacramento 3,033,964 438,965 0 438,965 14.5% 17.3% $1.35 Watt Ave 2,323,453 294,781 1,891 296,672 12.8% 13.6% $1.39 West Sacramento 1,983,326 241,491 21,272 262,763 13.2% 10.7% $1.67 Totals 85,312,023 12,530,786 174,094 12,704,880 14.9% 15.9% $1.65 Rate by Area 45% 4 35% 3 25% 15% 5% Q2-14 Q2-13 Average Asking Rate by Area (FS) $2.50 $1.50 $1.00 $0.50

Total Market Class A 25,923,228 25,974,397 25,974,397 25,974,397 25,974,397 Class B 39,087,449 39,129,449 39,104,449 39,166,445 39,188,395 Class C 20,164,231 20,164,231 20,164,231 20,149,231 20,149,231 Total Building Base 85,174,908 85,268,077 85,243,077 85,290,073 85,312,023 Class A 3,641,582 3,483,581 3,420,932 3,353,470 3,331,911 Class B 6,607,321 6,465,416 6,411,210 6,382,737 6,254,235 Class C 3,025,832 3,081,197 2,985,994 2,980,890 2,944,640 Total Building Base 13,274,735 13,030,194 12,818,136 12,717,097 12,530,786 Class A 168,652 129,344 128,428 126,837 122,715 Class B 74,677 79,214 72,149 74,729 49,488 Class C 2,903 1,891 1,891 1,891 1,891 Total Building Base 246,232 210,449 202,468 203,457 174,094 Class A 3,810,234 3,612,925 3,549,360 3,480,307 3,454,626 Class B 6,681,998 6,544,630 6,483,359 6,457,466 6,303,723 Class C 3,028,735 3,083,088 2,987,885 2,982,781 2,946,531 All Types 13,520,967 13,240,643 13,020,604 12,920,554 12,704,880 Total Occupancy SF 71,653,941 72,027,434 72,222,473 72,369,519 72,607,143 Growth Rate (%) 0. 0.3% 0.3% 0.1% 0.3% Class A 14.7% 13.9% 13.7% 13.4% 13.3% Class B 17.1% 16.7% 16.6% 16.5% 16.1% Class C 15. 15.3% 14.8% 14.8% 14.6% All Types 15.9% 15.5% 15.3% 15.1% 14.9% Class A $2.05 $2.05 $2.04 $2.04 $2.06 Class B $1.63 $1.63 $1.63 $1.63 $1.65 Class C $1.14 $1.16 $1.16 $1.17 $1.17 All Types $1.64 $1.63 $1.64 $1.63 $1.65 Class A 0 51,169 0 0 0 Class B 0 42,000 0 25,916 21,860 Total A & B 0 93,169 0 25,916 21,860 Gross Absorption 1,087,577 1,258,164 834,611 690,826 1,027,680 Net Absorption -69,373 373,493 195,039 147,046 237,624 YTD Net Absorption 18,148 391,641 586,680 147,046 384,670 16% 17.5% 17.4% 17.5% 17.6% 17.4% 17. 16. 15.8% 15.9% 15.5% 15.3% 15.1% 14.9% 12%

Downtown Sacramento Class A 9,091,300 9,091,300 9,091,300 9,091,300 9,091,300 Class B 5,677,462 5,677,462 5,677,462 5,677,462 5,677,462 Class C 4,112,131 4,112,131 4,112,131 4,112,131 4,112,131 All Types 18,880,893 18,880,893 18,880,893 18,880,893 18,880,893 Class A 1,015,322 1,020,638 913,623 894,889 918,255 Class B 710,034 840,458 863,837 839,772 883,775 Class C 398,600 403,819 382,726 388,607 379,758 All Types 2,123,956 2,264,915 2,160,186 2,123,268 2,181,788 Class A 32,347 15,376 15,376 15,376 16,839 Class B 19,352 19,352 15,998 13,767 13,767 All Types 51,699 34,728 31,374 29,143 30,606 Class A 1,047,669 1,036,014 928,999 910,265 935,094 Class B 729,386 859,810 879,835 853,539 897,542 Class C 398,600 403,819 382,726 388,607 379,758 All Types 2,175,655 2,299,643 2,191,560 2,152,411 2,212,394 Total Occupancy SF 16,705,238 16,581,250 16,689,333 16,728,482 16,668,499 Growth Rate (%) 0.2% -0.7% 0.6% 0.2% -0.3% Class A 11.5% 11.4% 10.2% 10. 10.3% Class B 12.8% 15.1% 15.5% 15. 15.8% Class C 9.7% 9.8% 9.3% 9.5% 9.2% All Types 11.5% 12.2% 11.6% 11.4% 11.7% Class A $2.62 $2.63 $2.62 $2.59 $2.61 Class B $1.79 $1.80 $1.82 $1.82 $1.85 Class C $1.38 $1.38 $1.39 $1.38 $1.39 All Types $2.11 $2.10 $2.08 $2.07 $2.09 Gross Absorption 123,097 143,424 183,782 151,141 68,197 Net Absorption 34,252-123,988 108,083 39,149-59,983 YTD Net Absorption -255,624-379,612-271,529 39,149-20,834 13% 12% 12% 11% 11% 9% 12.2% 11.7% 11.5% 11.6% 11.7% 11.4% 11.1% 10.7% 10.7% 10.5% 10.3% 10.3% 10.2% $2.50 $1.50 $1.00 $0.50

Auburn / Lincoln Class B 627,026 627,026 627,026 627,026 627,026 Class C 731,710 731,710 731,710 731,710 731,710 All Types 1,358,736 1,358,736 1,358,736 1,358,736 1,358,736 Class B 125,568 129,663 134,995 131,179 102,203 Class C 100,120 98,852 81,679 80,720 72,069 All Types 225,688 228,515 216,674 211,899 174,272 All Types 0 0 0 0 0 Class B 125,568 129,663 134,995 131,179 102,203 Class C 100,120 98,852 81,679 80,720 72,069 All Types 225,688 228,515 216,674 211,899 174,272 Total Occupancy SF 1,133,048 1,130,221 1,142,062 1,146,837 1,184,464 Growth Rate (%) -0.5% -0.2% 0.9% 0.4% 2.8% Class A 0. 0. 0. 0. 0. Class B 20. 20.7% 21.5% 20.9% 16.3% Class C 13.7% 13.5% 11.2% 11. 9.8% All Types 16.6% 16.8% 15.9% 15.6% 12.8% Class A Class B $1.64 $1.63 $1.64 $1.64 $1.74 Class C $1.08 $1.08 $1.09 $1.08 $1.09 All Types $1.39 $1.39 $1.43 $1.43 $1.47 Gross Absorption 14,966 1,268 25,217 13,801 42,683 Net Absorption -6,256-2,827 11,841 4,775 37,627 YTD Net Absorption -18,298-21,125-9,284 4,775 42,402 16% 12% 11.9% 12.5% 12.7% 12.4% 13.4% 15.7% 15.3% 16.1% 16.6% 16.8% 15.9% 15.6% 12.8% 8% 4%

Campus Commons Class B 1,052,570 1,052,570 1,052,570 1,052,570 1,052,570 Class C 168,577 168,577 168,577 168,577 168,577 All Types 1,221,147 1,221,147 1,221,147 1,221,147 1,221,147 Class B 232,978 229,254 223,997 237,064 227,858 Class C 26,346 25,995 27,905 27,905 27,905 All Types 259,324 255,249 251,902 264,969 255,763 All Types 0 0 0 0 0 Class B 232,978 229,254 223,997 237,064 227,858 Class C 26,346 25,995 27,905 27,905 27,905 All Types 259,324 255,249 251,902 264,969 255,763 Total Occupancy SF 961,823 965,898 969,245 956,178 965,384 Growth Rate (%) 2.1% 0.3% 0.3% -1.1% 0.8% Class A 0. 0. 0. 0. 0. Class B 22.1% 21.8% 21.3% 22.5% 21.6% Class C 15.6% 15.4% 16.6% 16.6% 16.6% All Types 21.2% 20.9% 20.6% 21.7% 20.9% Class A Class B $1.73 $1.74 $1.74 $1.77 $1.76 Class C $1.62 $1.64 $1.64 $1.68 $1.67 All Types $1.72 $1.73 $1.73 $1.76 $1.75 Gross Absorption 35,725 11,599 13,585 2,251 11,156 Net Absorption 25,946 4,075 3,347-13,067 9,206 YTD Net Absorption 25,832 29,907 33,254-13,067-3,861 3 25% 15% 5% 23.8% 23.4% 23.4% 23.9% 24.8% 23.5% 23.4% 23.4% 21.2% 20.9% 20.6% 21.7% 20.9% $1.80 $1.40 $1.00 $0.60 $0.20

Carmichael / Fair Oaks Class B 437,190 437,190 412,190 412,190 412,190 Class C 567,055 567,055 567,055 567,055 567,055 All Types 1,004,245 1,004,245 979,245 979,245 979,245 Class B 40,628 61,656 17,371 26,229 26,699 Class C 79,932 73,460 60,119 68,969 64,789 All Types 120,560 135,116 77,490 95,198 91,488 All Types 0 0 0 0 0 Class B 40,628 61,656 17,371 26,229 26,699 Class C 79,932 73,460 60,119 68,969 64,789 All Types 120,560 135,116 77,490 95,198 91,488 Total Occupancy SF 883,685 869,129 901,755 884,047 887,757 Growth Rate (%) -0.7% -1.4% 5.9% -1.8% 0.4% Class A 0. 0. 0. 0. 0. Class B 9.3% 14.1% 4.2% 6.4% 6.5% Class C 14.1% 13. 10.6% 12.2% 11.4% All Types 12. 13.5% 7.9% 9.7% 9.3% Class A Class B $1.28 $1.35 $1.28 $1.30 $1.29 Class C $1.03 $1.02 $1.08 $1.19 $1.19 All Types $1.11 $1.17 $1.12 $1.22 $1.22 Gross Absorption 10,818 15,787 37,428 700 16,840 Net Absorption -6,832-14,556 32,626-17,708 3,710 YTD Net Absorption 9,957-4,599 28,027-17,708-13,998 16% 12% 8% 12.4% 13.3% 15.3% 15.1% 14.9% 14. 13. 11.3% 12. 13.5% 7.9% 9.7% 9.3% 4%

Citrus Heights / Orangevale Class A 79,163 79,163 79,163 79,163 79,163 Class B 557,340 557,340 557,340 557,340 557,430 Class C 800,682 800,682 800,682 800,682 800,682 All Types 1,437,185 1,437,185 1,437,185 1,437,185 1,437,275 Class B 105,991 99,953 89,661 95,450 96,768 Class C 96,230 86,837 91,336 94,372 98,616 All Types 202,221 186,790 180,997 189,822 195,384 All Types 0 0 0 0 0 Class B 105,991 99,953 89,661 95,450 96,768 Class C 96,230 86,837 91,336 94,372 98,616 All Types 202,221 186,790 180,997 189,822 195,384 Total Occupancy SF 1,234,964 1,250,395 1,256,188 1,247,363 1,241,891 Growth Rate (%) -0.2% 1.1% 0.4% -0.6% -0.4% Class A 0. 0. 0. 0. 0. Class B 19. 17.9% 16.1% 17.1% 17.4% Class C 12. 10.8% 11.4% 11.8% 12.3% All Types 14.1% 13. 12.6% 13.2% 13.6% Class A Class B $1.62 $1.61 $1.73 $1.73 $1.72 Class C $1.13 $1.11 $1.10 $1.06 $1.09 All Types $1.39 $1.38 $1.41 $1.40 $1.40 Gross Absorption 10,478 16,813 21,154 6,425 4,302 Net Absorption -2,450 15,431 5,793-8,825-5,472 YTD Net Absorption -9,827 5,604 11,397-8,825-14,297 18.1% 18.9% 17.7% 16% 15.7% 15. 14.5% 13.4% 13.9% 14.1% 13. 12.6% 13.2% 13.6% 12% 8% 4%

Davis / Woodland Class A 98,000 98,000 98,000 98,000 98,000 Class B 970,981 1,012,981 1,012,981 1,012,981 1,012,981 Class C 864,119 864,119 864,119 864,119 864,119 All Types 1,933,100 1,975,100 1,975,100 1,975,100 1,975,100 Class A 22,574 22,574 22,574 23,438 23,438 Class B 99,971 94,269 100,263 89,884 97,294 Class C 41,317 46,217 33,196 31,511 40,187 All Types 163,862 163,060 156,033 144,833 160,919 Class B 2,278 2,278 1,103 1,103 0 All Types 2,278 2,278 1,103 1,103 0 Class A 22,574 22,574 22,574 23,438 23,438 Class B 102,249 96,547 101,366 90,987 97,294 Class C 41,317 46,217 33,196 31,511 40,187 All Types 166,140 165,338 157,136 145,936 160,919 Total Occupancy SF 1,766,960 1,809,762 1,817,964 1,829,164 1,814,181 Growth Rate (%) 1.3% 0. 0.4% 0.6% -0.8% Class A 23. 23. 23. 23.9% 23.9% Class B 10.5% 9.5% 10. 9. 9.6% Class C 4.8% 5.3% 3.8% 3.6% 4.7% All Types 8.6% 8.4% 8. 7.4% 8.1% Class A $2.10 $2.10 $2.10 $2.10 $2.10 Class B $1.72 $1.72 $1.69 $1.66 $1.69 Class C $1.49 $1.43 $1.53 $1.51 $1.46 All Types $1.71 $1.69 $1.72 $1.70 $1.69 Class B 0 42,000 0 0 0 Total A & B 0 42,000 0 0 0 Gross Absorption 41,952 49,060 23,647 23,591 30,500 Net Absorption 25,745 42,802 8,202 11,200-14,983 YTD Net Absorption 42,643 85,445 93,647 11,200-3,783 14% 12.1% 11.9% 12.4% 12% 10.8% 10.8% 11.2% 10.8% 9.9% 8.6% 8.4% 8% 8. 7.4% 8.1% 6% 4% 2% $1.95 $1.90 $1.85 $1.80 $1.75 $1.70 $1.65 $1.55

East Sacramento Class B 1,500,061 1,500,061 1,500,061 1,500,061 1,500,061 Class C 340,435 340,435 340,435 340,435 340,435 All Types 1,840,496 1,840,496 1,840,496 1,840,496 1,840,496 Class B 165,278 169,145 168,281 168,989 164,916 Class C 76,463 77,561 76,009 72,792 69,650 All Types 241,741 246,706 244,290 241,781 234,566 All Types 0 0 0 0 0 Class B 165,278 169,145 168,281 168,989 164,916 Class C 76,463 77,561 76,009 72,792 69,650 All Types 241,741 246,706 244,290 241,781 234,566 Total Occupancy SF 1,598,755 1,593,790 1,596,206 1,598,715 1,605,930 Growth Rate (%) 0. -0.3% 0.1% 0.1% 0.4% Class A 0. 0. 0. 0. 0. Class B 11. 11.3% 11.2% 11.3% 11. Class C 22.5% 22.8% 22.3% 21.4% 20.5% All Types 13.1% 13.4% 13.3% 13.1% 12.7% Class A Class B $2.01 $2.01 $2.01 $2.23 $2.23 Class C $1.17 $0.94 $0.94 $0.89 $0.90 All Types $1.74 $1.67 $1.68 $1.83 $1.84 Gross Absorption 0 2,102 9,143 5,867 7,215 Net Absorption 0-4,965 2,416 2,509 7,215 YTD Net Absorption -1,183-6,148-3,732 2,509 9,724 16% 14.6% 13.8% 13.7% 13.1% 13.1% 13.1% 13.4% 13.3% 13.1% 12.7% 12% 10. 10.2% 10.3% 8% 4% $1.80 $1.40 $1.00 $0.60 $0.20

El Dorado Hills Class A 136,566 136,566 136,566 136,566 136,566 Class B 993,863 993,863 993,863 993,863 993,863 Class C 516,001 516,001 516,001 516,001 516,001 All Types 1,646,430 1,646,430 1,646,430 1,646,430 1,646,430 Class A 10,211 10,174 10,174 10,174 10,174 Class B 286,705 276,572 260,891 243,273 235,648 Class C 69,183 74,988 67,725 67,240 66,330 All Types 366,099 361,734 338,790 320,687 312,152 Class B 12,207 12,207 12,207 12,207 12,207 All Types 12,207 12,207 12,207 12,207 12,207 Class A 10,211 10,174 10,174 10,174 10,174 Class B 298,912 288,779 273,098 255,480 247,855 Class C 69,183 74,988 67,725 67,240 66,330 All Types 378,306 373,941 350,997 332,894 324,359 Total Occupancy SF 1,268,124 1,272,489 1,295,433 1,313,536 1,322,071 Growth Rate (%) 0.9% 0.3% 1.4% 1.1% 0.5% Class A 7.5% 7.4% 7.4% 7.4% 7.4% Class B 30.1% 29.1% 27.5% 25.7% 24.9% Class C 13.4% 14.5% 13.1% 13. 12.9% All Types 23. 22.7% 21.3% 20.2% 19.7% Class A $1.59 $1.54 $1.62 $1.62 Class B $1.61 $1.54 $1.51 $1.50 $1.50 Class C $1.36 $1.32 $1.31 $1.27 $1.31 All Types $1.56 $1.50 $1.47 $1.46 $1.46 Gross Absorption 28,852 8,641 33,716 15,520 59,744 Net Absorption 15,334 4,365 22,944 18,103 8,535 YTD Net Absorption 1,478 5,843 28,787 18,103 26,638 3 25% 15% 20.3% 20.1% 21.8% 21.7% 21.7% 22.6% 23.1% 23.9% 23. 22.7% 21.3% 20.2% 19.7% 5%

Folsom Class A 2,051,065 2,051,065 2,051,065 2,051,065 2,051,065 Class B 2,167,366 2,167,366 2,167,366 2,167,366 2,189,226 Class C 537,654 537,654 537,654 537,654 537,654 All Types 4,756,085 4,756,085 4,756,085 4,756,085 4,777,945 Class A 213,748 211,546 188,342 164,872 146,048 Class B 254,839 254,173 251,152 262,341 271,789 Class C 25,385 78,385 78,787 77,090 110,736 All Types 493,972 544,104 518,281 504,303 528,573 Class A 0 0 0 0 8,815 Class B 20,008 20,008 18,215 19,618 19,618 All Types 20,008 20,008 18,215 19,618 28,433 Class A 213,748 211,546 188,342 164,872 154,863 Class B 274,847 274,181 269,367 281,959 291,407 Class C 25,385 78,385 78,787 77,090 110,736 All Types 513,980 564,112 536,496 523,921 557,006 Total Occupancy SF 4,242,105 4,191,973 4,219,589 4,232,164 4,220,939 Growth Rate (%) 0.5% -1.1% 0.6% 0.3% -0.7% Class A 10.4% 10.3% 9.2% 8. 7.6% Class B 12.7% 12.7% 12.4% 13. 13.3% Class C 4.7% 14.6% 14.7% 14.3% 20.6% All Types 10.8% 11.9% 11.3% 11. 11.7% Class A $1.90 $1.90 $1.90 $1.93 $1.92 Class B $1.66 $1.69 $1.70 $1.75 $1.76 Class C $1.47 $1.46 $1.46 $1.46 $1.46 All Types $1.75 $1.74 $1.73 $1.76 $1.74 Class B 0 0 0 0 21,860 Total A & B 0 0 0 0 21,860 Gross Absorption 69,385 15,074 46,688 47,656 56,719 Net Absorption 24,884-50,132 27,616 12,575-11,225 YTD Net Absorption 48,976-1,156 26,460 12,575 1,350 18% 16% 14% 12% 8% 6% 4% 2% 15.8% 14.9% 13.7% 13.9% 13.1% 12.2% 11.8% 11.3% 10.8% 11.9% 11.3% 11. 11.7% $1.80 $1.40 $1.00 $0.60 $0.20

Highway 50 / Rancho Cordova Class A 5,162,347 5,162,347 5,162,347 5,162,347 5,162,347 Class B 9,500,400 9,500,400 9,500,400 9,536,480 9,536,480 Class C 2,520,852 2,520,852 2,520,852 2,520,852 2,520,852 All Types 17,183,599 17,183,599 17,183,599 17,219,679 17,219,679 Class A 501,679 397,268 431,454 440,584 460,553 Class B 1,630,992 1,530,742 1,532,176 1,543,316 1,538,519 Class C 455,510 489,612 482,896 474,349 436,788 All Types 2,588,181 2,417,622 2,446,526 2,458,249 2,435,860 Class A 106,615 87,789 88,755 87,789 72,789 Class B 1,317 1,317 1,317 0 0 All Types 107,932 89,106 90,072 87,789 72,789 Class A 608,294 485,057 520,209 528,373 533,342 Class B 1,632,309 1,532,059 1,533,493 1,543,316 1,538,519 Class C 455,510 489,612 482,896 474,349 436,788 All Types 2,696,113 2,506,728 2,536,598 2,546,038 2,508,649 Total Occupancy SF 14,487,486 14,676,871 14,647,001 14,673,641 14,711,030 Growth Rate (%) 0. 1.1% -0.2% -0.1% 0.2% Class A 11.8% 9.4% 10.1% 10.2% 10.3% Class B 17.2% 16.1% 16.1% 16.2% 16.1% Class C 18.1% 19.4% 19.2% 18.8% 17.3% All Types 15.7% 14.6% 14.8% 14.8% 14.6% Class A $1.82 $1.82 $1.80 $1.78 $1.80 Class B $1.56 $1.55 $1.55 $1.52 $1.55 Class C $1.09 $1.15 $1.14 $1.14 All Types $1.54 $1.52 $1.52 $1.51 $1.53 Gross Absorption 142,402 308,796 108,711 79,738 114,611 Net Absorption -5,221 189,385-29,870 26,640 37,389 YTD Net Absorption 132,311 321,696 291,826 26,640 64,029 18% 16% 14% 12% 8% 6% 4% 2% 17. 16. 17.5% 18.1% 17.9% 17.3% 16.5% 15.7% 15.7% 14.6% 14.8% 14.8% 14.6%

Howe Ave / Fulton Ave Class A 186,306 186,306 186,306 186,306 186,306 Class B 1,228,671 1,228,671 1,228,671 1,228,671 1,228,671 Class C 1,044,089 1,044,089 1,044,089 1,044,089 1,044,089 All Types 2,459,066 2,459,066 2,459,066 2,459,066 2,459,066 Class A 43,898 43,898 43,898 63,150 69,972 Class B 339,231 336,159 335,923 340,525 334,258 Class C 201,520 188,331 188,473 213,290 216,908 All Types 584,649 568,388 568,294 616,965 621,138 Class B 4,202 4,202 4,202 0 0 All Types 4,202 4,202 4,202 0 0 Class A 43,898 43,898 43,898 63,150 69,972 Class B 343,433 340,361 340,125 340,525 334,258 Class C 201,520 188,331 188,473 213,290 216,908 All Types 588,851 572,590 572,496 616,965 621,138 Total Occupancy SF 1,870,215 1,886,476 1,886,570 1,842,101 1,837,928 Growth Rate (%) -11.6% 0.7% 0. -1.8% -0.2% Class A 23.6% 23.6% 23.6% 33.9% 37.6% Class B 28. 27.7% 27.7% 27.7% 27.2% Class C 19.3% 18. 18.1% 20.4% 20.8% All Types 23.9% 23.3% 23.3% 25.1% 25.3% Class A $1.76 $1.76 $1.76 $1.85 $1.85 Class B $1.49 $1.51 $1.49 $1.48 $1.51 Class C $1.56 $1.54 $1.53 $1.50 $1.46 All Types $1.53 $1.54 $1.52 $1.52 $1.53 Gross Absorption 34,635 38,787 16,995 16,941 18,021 Net Absorption -286,204 16,261 94-44,469-4,173 YTD Net Absorption 3,576 19,837 19,931-44,469-48,642 3 25% 22. 22.2% 24.1% 23.6% 23.1% 23. 23.5% 23.9% 23.3% 23.3% 25.1% 25.3% 15% 12.3% 5%

Midtown Sacramento Class A 571,819 571,819 571,819 571,819 571,819 Class B 1,940,640 1,940,640 1,940,640 1,940,640 1,940,640 Class C 1,192,609 1,192,609 1,192,609 1,192,609 1,192,609 All Types 3,705,068 3,705,068 3,705,068 3,705,068 3,705,068 Class A 16,688 3,625 3,625 8,229 8,229 Class B 170,419 92,436 94,475 97,352 101,452 Class C 141,894 154,233 154,604 151,995 127,422 All Types 329,001 250,294 252,704 257,576 237,103 Class B 0 0 0 10,441 0 All Types 0 0 0 10,441 0 Class A 16,688 3,625 3,625 8,229 8,229 Class B 170,419 92,436 94,475 107,793 101,452 Class C 141,894 154,233 154,604 151,995 127,422 All Types 329,001 250,294 252,704 268,017 237,103 Total Occupancy SF 3,376,067 3,454,774 3,452,364 3,437,051 3,467,965 Growth Rate (%) -0.4% 2.1% -0.1% -0.4% 0.8% Class A 2.9% 0.6% 0.6% 1.4% 1.4% Class B 8.8% 4.8% 4.9% 5.6% 5.2% Class C 11.9% 12.9% 13. 12.7% 10.7% All Types 8.9% 6.8% 6.8% 7.2% 6.4% Class A $2.25 $2.25 $2.25 $2.37 $2.75 Class B $2.01 $1.97 $1.99 $1.99 $1.96 Class C $1.68 $1.66 $1.50 $1.50 $1.49 All Types $1.88 $1.78 $1.69 $1.72 $1.73 Gross Absorption 6,801 102,188 6,763 18,857 53,455 Net Absorption -13,376 78,707-2,410-15,313 30,914 YTD Net Absorption -29,769 48,938 46,528-15,313 15,601 9% 8% 7% 6% 5% 4% 3% 2% 1% 8.5% 8.5% 7.8% 8.1% 8. 8.1% 8.1% 8.5% 8.9% 6.8% 6.8% 7.2% 6.4% $2.50 $1.50 $1.00 $0.50

Natomas / Northgate Class A 3,622,022 3,622,022 3,622,022 3,622,022 3,622,022 Class B 2,233,296 2,233,296 2,233,296 2,233,296 2,233,296 Class C 551,045 551,045 551,045 551,045 551,045 All Types 6,406,363 6,406,363 6,406,363 6,406,363 6,406,363 Class A 749,428 753,910 767,882 779,890 810,416 Class B 466,133 443,445 444,089 440,058 443,081 Class C 147,449 147,499 147,499 147,669 147,669 All Types 1,363,010 1,344,854 1,359,470 1,367,617 1,401,166 Class A 2,219 2,219 0 0 0 All Types 2,219 2,219 0 0 0 Class A 751,647 756,129 767,882 779,890 810,416 Class B 466,133 443,445 444,089 440,058 443,081 Class C 147,449 147,499 147,499 147,669 147,669 All Types 1,365,229 1,347,073 1,359,470 1,367,617 1,401,166 Total Occupancy SF 5,041,134 5,059,290 5,046,893 5,038,746 5,005,197 Growth Rate (%) 1. 0.3% -0.2% -0.1% -0.5% Class A 20.8% 20.9% 21.2% 21.5% 22.4% Class B 20.9% 19.9% 19.9% 19.7% 19.8% Class C 26.8% 26.8% 26.8% 26.8% 26.8% All Types 21.3% 21. 21.2% 21.3% 21.9% Class A $1.92 $1.91 $1.87 $1.89 $1.91 Class B $1.62 $1.59 $1.57 Class C $1.01 $1.04 $1.04 $1.04 $1.04 All Types $1.72 $1.71 $1.69 $1.70 $1.71 Gross Absorption 187,864 64,866 72,256 36,421 69,946 Net Absorption 62,645 18,156-12,397-8,147-33,549 YTD Net Absorption -135,116-116,960-129,357-8,147-41,696 3 25% 15% 24.7% 23.5% 23.2% 24.2% 24.1% 23.5% 19.2% 22.3% 21.3% 21. 21.2% 21.3% 21.9% 5%

Point West Class A 858,620 858,620 858,620 858,620 858,620 Class B 1,173,945 1,173,945 1,173,945 1,187,285 1,187,285 Class C 660,735 660,735 660,735 660,735 660,735 All Types 2,693,300 2,693,300 2,693,300 2,706,640 2,706,640 Class A 247,133 206,283 211,779 204,330 160,099 Class B 361,385 358,419 361,162 367,476 252,109 Class C 89,792 151,936 146,990 146,990 148,875 All Types 698,310 716,638 719,931 718,796 561,083 Class A 0 0 0 0 3,000 Class B 13,697 13,697 13,697 13,697 0 All Types 13,697 13,697 13,697 13,697 3,000 Class A 247,133 206,283 211,779 204,330 163,099 Class B 375,082 372,116 374,859 381,173 252,109 Class C 89,792 151,936 146,990 146,990 148,875 All Types 712,007 730,335 733,628 732,493 564,083 Total Occupancy SF 1,981,293 1,962,965 1,959,672 1,974,147 2,142,557 Growth Rate (%) -0.1% -0.7% -0.1% 0. 6.2% Class A 28.8% 24. 24.7% 23.8% 19. Class B 32. 31.7% 31.9% 32.1% 21.2% Class C 13.6% 23. 22.2% 22.2% 22.5% All Types 26.4% 27.1% 27.2% 27.1% 20.8% Class A $1.85 $1.85 $1.85 $1.85 $1.84 Class B $1.67 $1.66 $1.67 $1.66 $1.66 Class C $1.06 $1.44 $1.44 $1.45 $1.46 All Types $1.66 $1.67 $1.68 $1.67 $1.66 Class B 0 0 0 13,340 0 Total A & B 0 0 0 13,340 0 Gross Absorption 9,741 57,637 15,749 40,537 210,073 Net Absorption -1,695-18,328-3,293 14,475 168,410 YTD Net Absorption 72,284 53,956 50,663 14,475 182,885 35% 32.2% 30.9% 30.5% 31.3% 29.5% 29.1% 3 25.7% 26.4% 26.4% 27.1% 27.2% 27.1% 25% 20.8% 15% 5%

Rio Linda / North Highlands Class B 249,982 249,982 249,982 249,982 249,982 Class C 759,098 759,098 759,098 759,098 759,098 All Types 1,009,080 1,009,080 1,009,080 1,009,080 1,009,080 Class B 29,766 29,766 29,766 31,024 31,024 Class C 283,927 283,927 271,831 271,831 271,831 All Types 313,693 313,693 301,597 302,855 302,855 All Types 0 0 0 0 0 Class B 29,766 29,766 29,766 31,024 31,024 Class C 283,927 283,927 271,831 271,831 271,831 All Types 313,693 313,693 301,597 302,855 302,855 Total Occupancy SF 695,387 695,387 707,483 706,225 706,225 Growth Rate (%) 0. 0. 1.2% -0.1% 0. Class A 0. 0. 0. 0. 0. Class B 11.9% 11.9% 11.9% 12.4% 12.4% Class C 37.4% 37.4% 35.8% 35.8% 35.8% All Types 31.1% 31.1% 29.9% 30. 30. Class A Class B $1.41 $1.41 $1.34 $1.24 $1.17 Class C $1.61 $1.61 $1.61 $1.61 $1.63 All Types $1.59 $1.59 $1.58 $1.57 $1.58 Gross Absorption 0 0 0 297 0 Net Absorption 0 0 12,096-1,258 0 YTD Net Absorption 10,126 10,126 22,222-1,258-1,258 5 4 39.4% 42. 40.2% 40.5% 41.4% 40.8% 32.1% 31.1% 31.1% 31.1% 29.9% 30. 30. 3

Roseville / Rocklin Class A 3,232,228 3,283,397 3,283,397 3,283,397 3,283,397 Class B 5,598,851 5,598,851 5,598,851 5,598,851 5,598,851 Class C 1,465,869 1,465,869 1,465,869 1,465,869 1,465,869 All Types 10,296,948 10,348,117 10,348,117 10,348,117 10,348,117 Class A 797,117 789,881 803,797 740,130 644,255 Class B 1,157,342 1,102,357 1,082,618 1,039,415 1,009,363 Class C 216,894 210,905 208,464 200,398 207,821 All Types 2,171,353 2,103,143 2,094,879 1,979,943 1,861,439 Class A 6,199 2,688 3,025 2,400 0 Class B 1,616 6,153 5,410 3,896 3,896 All Types 7,815 8,841 8,435 6,296 3,896 Class A 803,316 792,569 806,822 742,530 644,255 Class B 1,158,958 1,108,510 1,088,028 1,043,311 1,013,259 Class C 216,894 210,905 208,464 200,398 207,821 All Types 2,179,168 2,111,984 2,103,314 1,986,239 1,865,335 Total Occupancy SF 8,117,780 8,236,133 8,244,803 8,361,878 8,482,782 Growth Rate (%) 0.5% 0.6% 0.1% 1.1% 1.2% Class A 24.9% 24.1% 24.6% 22.6% 19.6% Class B 20.7% 19.8% 19.4% 18.6% 18.1% Class C 14.8% 14.4% 14.2% 13.7% 14.2% All Types 21.2% 20.4% 20.3% 19.2% 18. Class A $1.73 $1.71 $1.80 $1.81 $1.82 Class B $1.61 $1.62 Class C $1.22 $1.22 $1.23 $1.27 $1.30 All Types $1.61 $1.65 $1.65 $1.65 Class A 0 51,169 0 0 0 Total A & B 0 51,169 0 0 0 Gross Absorption 258,755 224,802 142,010 198,280 212,637 Net Absorption 52,715 118,353 8,670 117,075 120,904 YTD Net Absorption 52,715 303,076 311,746 117,075 237,979 35% 29.8% 29.4% 3 27.8% 27. 26.9% 26.3% 25% 23. 21.7% 21.2% 20.4% 20.3% 19.2% 18. 15% 5%

South Sacramento Class B 1,342,672 1,342,672 1,342,672 1,355,248 1,355,248 Class C 1,678,716 1,678,716 1,678,716 1,678,716 1,678,716 All Types 3,021,388 3,021,388 3,021,388 3,033,964 3,033,964 Class B 192,423 182,766 198,084 204,414 209,841 Class C 331,070 246,109 237,649 232,313 229,124 All Types 523,493 428,875 435,733 436,727 438,965 All Types 0 0 0 0 0 Class B 192,423 182,766 198,084 204,414 209,841 Class C 331,070 246,109 237,649 232,313 229,124 All Types 523,493 428,875 435,733 436,727 438,965 Total Occupancy SF 2,497,895 2,592,513 2,585,655 2,597,237 2,594,999 Growth Rate (%) 0. 3.1% -0.2% 0. -0.1% Class A 0. 0. 0. 0. 0. Class B 14.3% 13.6% 14.8% 15.1% 15.5% Class C 19.7% 14.7% 14.2% 13.8% 13.6% All Types 17.3% 14.2% 14.4% 14.4% 14.5% Class A Class B $1.52 $1.57 $1.49 $1.49 $1.44 Class C $1.24 $1.23 $1.23 $1.25 $1.27 All Types $1.34 $1.37 $1.35 $1.36 $1.35 Class B 0 0 0 12,576 0 Total A & B 0 0 0 12,576 0 Gross Absorption 63,695 187,823 41,060 21,798 40,248 Net Absorption -1,054 94,618-6,858 11,582-2,238 YTD Net Absorption -58,079 36,539 29,681 11,582 9,344 25% 15% 14. 14. 16.7% 19.6% 18.9% 17.8% 16.5% 17.3% 17.3% 14.2% 14.4% 14.4% 14.5% 5%

Watt Ave Class B 1,102,692 1,102,692 1,102,692 1,102,692 1,102,692 Class C 1,235,761 1,235,761 1,235,761 1,220,761 1,220,761 All Types 2,338,453 2,338,453 2,338,453 2,323,453 2,323,453 Class B 108,106 104,651 87,638 92,148 96,900 Class C 207,461 205,792 216,422 200,483 197,881 All Types 315,567 310,443 304,060 292,631 294,781 Class C 2,903 1,891 1,891 1,891 1,891 All Types 2,903 1,891 1,891 1,891 1,891 Class B 108,106 104,651 87,638 92,148 96,900 Class C 210,364 207,683 218,313 202,374 199,772 All Types 318,470 312,334 305,951 294,522 296,672 Total Occupancy SF 2,019,983 2,026,119 2,032,502 2,028,931 2,026,781 Growth Rate (%) 1.5% 0.3% 0.3% 0.5% -0.1% Class A 0. 0. 0. 0. 0. Class B 9.8% 9.5% 7.9% 8.4% 8.8% Class C 17. 16.8% 17.7% 16.6% 16.4% All Types 13.6% 13.4% 13.1% 12.7% 12.8% Class A Class B $1.43 $1.43 $1.55 $1.56 $1.53 Class C $1.24 $1.24 $1.26 $1.28 $1.32 All Types $1.30 $1.30 $1.34 $1.37 $1.39 Gross Absorption 9,786 9,497 29,518 2,688 7,158 Net Absorption -15,108 6,136 6,383-3,571-2,150 YTD Net Absorption -23,215-17,079-10,696-3,571-5,721 16% 14.5% 14.4% 11.3% 12% 14.9% 14.7% 14.5% 14.4% 14.8% 13.6% 13.4% 13.1% 12.7% 12.8% 8% 4%

West Sacramento Class A 833,792 833,792 833,792 833,792 833,792 Class B 732,441 732,441 732,441 732,441 732,441 Class C 417,093 417,093 417,093 417,093 417,093 All Types 1,983,326 1,983,326 1,983,326 1,983,326 1,983,326 Class A 23,784 23,784 23,784 23,784 80,472 Class B 129,532 129,532 134,831 132,828 130,738 Class C 36,739 36,739 31,684 32,366 30,281 All Types 190,055 190,055 190,299 188,978 241,491 Class A 21,272 21,272 21,272 21,272 21,272 All Types 21,272 21,272 21,272 21,272 21,272 Class A 45,056 45,056 45,056 45,056 101,744 Class B 129,532 129,532 134,831 132,828 130,738 Class C 36,739 36,739 31,684 32,366 30,281 All Types 211,327 211,327 211,571 210,250 262,763 Total Occupancy SF 1,771,999 1,771,999 1,771,755 1,773,076 1,720,563 Growth Rate (%) 1.4% 0. 0. 0.1% -2.6% Class A 5.4% 5.4% 5.4% 5.4% 12.2% Class B 17.7% 17.7% 18.4% 18.1% 17.8% Class C 8.8% 8.8% 7.6% 7.8% 7.3% All Types 10.7% 10.7% 10.7% 10.6% 13.2% Class A $1.70 $1.70 $1.72 $1.72 $1.72 Class B $1.73 $1.73 $1.72 $1.68 $1.68 Class C $1.47 $1.48 $1.48 $1.46 $1.45 All Types $1.68 $1.68 $1.68 $1.65 $1.67 Gross Absorption 38,625 0 7,189 8,317 4,175 Net Absorption 27,302 0-244 1,321-52,513 YTD Net Absorption 17,353 17,353 17,109 1,321-51,192 14% 13.2% 11.5% 12. 12% 10.3% 9.9% 9.9% 9.9% 10.2% 10.2% 10.7% 10.7% 10.7% 10.6% 8% 6% 4% 2%

Sacramento Valley Office Report 70 49 80 5 Woodland 505 1 Winters 80 Davis 99 Citrus Rio Linda 2 Heights Orangevale North 12 Folsom Highlands Fair Oaks 80 Arcade Carmichael Arden Rancho 10 4 5 Cordova West Sacramento SACRAMENTO 9 3 6 7 Parkway Florin 99 Laguna West Elk Grove 13 Roseville 8 65 14 Lincoln Loomis New Castle Rocklin 50 Auburn El Dorado Hills 11 1 2 3 LEGEND Davis/Woodland Natomas/Northgate West Sacramento 4 Downtown Placerville 5 East SacramentoCamino 6 South Sacramento Shingle 7 Power Inn Springs 8 Elk Grove/Laguna 9 Mather 49 10 Sunrise 11 Folsom/El Dorado Hills Plymouth 12 McClellan 13 Roseville/Rocklin 14 Auburn/New Castle 88 Vacaville Definitions Report Published By: Cassidy Turley Sacramento 520 Capitol Mall Suite 500 Sacramento, CA 95814 Tel 916 375 1500 Fax 916 376 8840 Class A Product Steel and concrete construction, built after 1980, quality tenants, excellent amenities & premium rents. Class B Product Built after 1960, fair to good finishes & wide range of tenants. Total Building Base Includes Class A, Class B, Class C and Suburban Garden Office buildings over 10,000 square feet. Direct Availabilities Total square footage being marketed for lease by landlord available within 90 days. This may include availabilities with pending leases. Sublease Availabilities Total square footage being marketed for lease by sublessor. Total available square footage (direct & sublease) divided by Total Building Base. BTS (Build-to-Suit) A method of leasing property whereby the landlord builds to suit the tenant (according to tenant s specifications). The cost of construction is figured into the rental amount of the lease, which is usually for a long term. New Spec (Speculative) A building constructed for lease or sale but without having a tenant or buyer before construction begins. Gross Absorption Total leasing and user sale activity in the marketplace in a given time period. Net Absorption Change in occupied building square footage in a given time period. Avg. Asking Rate Weighted Average Full Service Rate (by available square footage) of available spaces with NNN and Gross rates converted to Full Service rates. Avg. Time on Market Weighted Average Time on market (by available square footage) of available spaces reflected in months. Availables by Size Number of current available spaces for lease in the given size. Historical Continuity Cassidy Turley maintains a building by building historical record. Comparing previous reports to this report may show different building size numbers and statistics. Changes are caused by reclassification of buildings and revised building sizes. Historical comparisons should be made from this report only as Cassidy Turley adjusts the historical record accordingly. Source Data is tracked and tallied from information provided by The Costar Group. Disclaimer: The information contained herein while not guaranteed has been secured by sources we deem reliable. All information should be verified prior to lease or sale.