Market Report. Northern Virginia 1st Quarter cushmanwakefield.com

Market Report Northern Virginia 1st Quarter 2017 cushmanwakefield.com

Contents DC Metropolitan Area Overview...3 Northern Virginia & Map...4-6 Alexandria...7 RB Corridor...8 Crystal City/Pentagon City...9 Tysons Corner......10 Reston/Herndon...11 50-66...12 Route 28 South/Chantilly...13 Loudoun County...14 Appendix...15 Tables...15-24 Methodology & Definitions...25 About Cushman & Wakefield...26 Cushman & Wakefield 2

Washington, DC Metropolitan Area A Slow Start to 2017 For the Washington, DC politan region (DC Metro) in early March 2017, the Bureau of Labor Statistics (BLS) revised the number of job gains in 2016 downward from 73,000 to 57,000. Despite this significant revision, job creation for 2016 as a whole for the Metro area was still well above its historical annual average of 36,000 jobs per year and the pace of job growth has continued to accelerate into 2017; in the first three months of 2017, the DC Metro saw 12,300 new jobs added. Northern Virginia (NoVA) and Suburban Maryland gained jobs while employment in the District of Columbia (the District) remained flat. Three industry sectors contributed to the majority of job gains: Retail added 5,800 jobs, Professional and Business Services added 4,400 jobs and Education and Healthcare added 4,800 positions. As is typical early in any year, the headline commercial real estate statistics for the first quarter of 2017 were relatively flat. While 2017 began with activity on an uptick, deals continued to take time to transact. The regional vacancy rate ended the first quarter of 2017 at 17.7%, down 10 basis points (BP) from the first quarter of 2016. The majority of vacant space 27.8 million square feet (MSF) was in NoVA whose vacancy rate was 21.3% at first-quarter s end, while the District and Suburban Maryland ended the quarter with vacancies of 12.3% and 19.6%, respectively. While asking rents have continued to rise on a regional basis up from $36.19 per square foot (PSF) in Q1 2016 to $39.29 in Q1 2017 concessions have remained at peak levels. Effective rents are expected to remain flat, overall, for the next 12 to 18 months. The amount of new construction that will hit the regional market in 2017 and 2018 totals more than 7 MSF. But while that new construction is 68% committed as of the first quarter of 2017, 2.3 MSF remains available and will likely cause vacancy to rise in the near term. Greater rent growth will be seen at the upper end of the market, in highly amenitized suburban submarkets that have access to mass transit, and Class B space downtown. Modest positive net absorption in the District and Suburban Maryland was offset by a negative 195,000 square feet (SF) of absorption in Northern Virginia the result of several moves out of tenants off transit to more efficient space along Metro lines. The largest lease deals of the first quarter of 2017 illustrate the overall market dynamics. In the District, the Federal Communications Commission (FCC) boasted the largest leasing transaction of the quarter, as the agency consolidated operations into 473,000 SF at Sentinel Square III in NoMA first-generation space that is set to deliver in mid-2019. The FCC downsized from its 660,000 SF in the Southwest submarket and the overall square-feet-per-worker shrank from 272 SF to 180 SF. As has been the case in other high-profile federal/gsa leases like those for the Department of Justice, the Federal Election Commission and the National Labor Relations Board, the federal government will likely continue to migrate from the core downtown submarkets where price points and efficiency are much harder to achieve to emerging markets to benefit from new, highly efficient offerings. On the private sector side, two significant law firm transactions illustrate the continued demand for new construction and increased efficiency from the legal sector. Akin Gump was the top largest private-sector deal; it signed a lease for 189,000 SF at the former 2000 L Street, NW an office building currently undergoing a complete façade renovation in a relocation from its current Washington, DC operations at 1333 New Hampshire Avenue, NW. Paul Hastings will relocate from the Bowen Building in the East End to a to-be-built project at 2050 M Street, NW. Both of these transactions illustrate strong face rents in the mid-to-upper $50 s NNN, with 15+ years of term coupled with aggressive tenant improvement allowances and ample free rent. These transactions also represent 15-20% of downsizing on the part of both firms, as high-performance floor plates allow for more timekeepers per square foot on the floor. There are several additional high-profile legal sector tenants active in the market that are targeting the top floors of new or substantially renovated product that are expected sign leases during 2017. The largest non-renewal transaction in the DC Metro suburbs was that of Nestle North America, which will relocate its U.S. headquarters operations from Glendale, CA to 250,000 SF of first- generation space at 1812 N. Moore Street in Rosslyn, VA. The company is bringing 750 jobs to Northern Virginia and is expected to aggressively hire locally to fill additional positions that will become vacant with Nestle s relocation. Following on the heels of Marriott s decision to occupy new construction in Bethesda, several other regionally and nationally competitive relocations to the region could be on the horizon. New construction in the suburbs will benefit as it continues to outperform existing space. Large suburban users are more active in the market currently than in nearly a decade, and developers are expected to move forward with several projects in key submarkets such as Bethesda, Tysons Corner, Reston and Herndon. WASHINGTON, DC METRO Economic Indicators Q1 16 Q1 17 DC Metro Employment 3.22M 3.26M DC Metro Unemployment 3.8% 3.7% U.S. Unemployment 5.0% 4.5% Market Indicators Q1 16 Q1 17 Overall 17.8% 17.7% Net Absorption -334K -76K Under Construction 6.77M 9.63M Deliveries 764K 432K Average (FS) $36.19 $39.29 Net Absorption/ 4Q TRAILING AVERAGE 1,400 1,200 1,000 Washington, DC Metropolitan Area NET ABSORPTION - DELIVERIES - VACANCY MSF 800 600 400 200 0-200 -400-600 -800 10 8 6 4 2 0-2 -4-6 05 06 07 08 09 10 11 12 13 14 15 16 17 Net Absorption Deliveries Rate 12-Month Forecast 12-Month Forecast -1,000 $36 2011 2012 2013 2014 2015 2016 2017 Net Absorption, SF (thousands), $ PSF 20% 16% 12% 8% 4% 0% $39 $39 $38 $38 $37 $37 Rate cushmanwakefield.com 3

Northern Virginia Economy The Washington, DC politan region continued its robust economic expansion in the first quarter of 2017, adding a total of 12,300 net new nonfarm jobs to payrolls in January and February. A healthy percentage of those jobs 6,700, were added in Northern Virginia (NoVA) with significant gains in Professional and Business Services (2,080 jobs), Retail (1,210 jobs), Leisure and Hospitality (1,120 jobs), and Financial Activities (640 jobs). The unemployment rate in the City of Alexandria and counties of Arlington, Fairfax, Loudoun and Prince William remains under 3.5%. Market Overview Despite over 2 million square feet (MSF) of non owner-occupied deliveries over the past 10 quarters, NoVA s vacancy has remained steady between 21% and 22%, as many of these new buildings approach full occupancy. NoVA-wide rental rates remain unchanged, but well-positioned Class A buildings, especially in the Silver Line markets, are successfully pushing asking rents. Negative absorption for the quarter can be attributed to the consolidation of a handful of tenants: Noblis leaving the Fairview Park area of Merrifield for Reston, FEMA consolidating within Crystal City, and Tegna giving back a large block at the former USA Today headquarters building as it continues to consolidate before moving into the under-construction 8350 Broad Street in the first half of 2019. One of the most significant leases of the past several years occurred in the first quarter of 2017, as Nestle announced plans to relocate from Los Angeles into 206,000 SF at 1812 North Moore Street in Rosslyn. Nestle will occupy 40% of this building, and will offer most of their 750 employees relocation packages, with any gaps filled locally. New leasing activity in the first quarter was just below average, at 1.1 million square feet (MSF). Renewals figured prominently, comprising eight of the top ten deals. The largest renewal of the quarter was Arlington County s recommitment to 235,000 SF of administrative offices at 2200 Clarendon Boulevard. Several large impending deals are expected to close in the second and third quarters, potentially providing a healthy boost to leasing activity. Two new buildings are under construction in the Route 28 South submarket: a 425,000-SF building on the Dulles Discovery campus, and a speculative 240,000-SF building at 14757 Conference Center Drive, in the Westfields area of the submarket. The most likely suitors for the second building are security-related contractors and agencies. Outlook Nestle s decision to relocate to Rosslyn provides a shot in the arm for a submarket in the middle of transformation, and strengthens another industry base as it settles 9 miles away from McLeanbased Mars. The DC Metro is already known for its presence of consumer banking firms, credit unions, hospitality firms, government contractors, and now to a certain extent, consumer goods. Metro DC would be wise to support the growth and creation of these base industries, as they provide new sources of high-paying employment and a boost to the service industry. Market Indicators Net Absorption/ 4Q TRAILING AVERAGE 400 200 0-200 -400-600 -800 2011 2012 2013 2014 2015 2016 2017 Net Absorption, SF (thousands), $ PSF Overall Q1 16 Q1 17 Overall 21.4% 21.3% Net Absorption (98k) (195k) Under Construction 3.6M 4.7M Deliveries 160K 65K Average $32.14 $32.06 24% 22% 20% 18% 16% 14% 12% Large Blocks of Contiguous Space 12-Month Forecast 10% 2011 2012 2013 2014 2015 2016 2017 Loudoun County Route 28 South Springfield/Newington 50/66 Reston/Herndon Tysons Corner Arlington Alexandria 0 20 40 60 80 # of Blocks 25-50k SF 50-100k SF 100-150k SF 150-200k SF 200k+ SF $34 $33 $32 $31 $30 $29 $28 Cushman & Wakefield 4

Northern Virginia Office Submarkets Northern Virginia Office Submarkets LOUDOUN LOUDOUN PHASE II 2016 267 MARYLAND ROUTE 772 ROUTE 606 RESTON RESTON 267 INNOVATION CENTER WASHINGTON DULLES INTERNATIONAL AIRPORT PHASE I 7 HERNDON RESTON TOWN CENTER 267 WIEHLE - RESTON EAST TY UN TY CO UN N CO X SPRING HILL FA OU WASHINGTON, DC IR UD 123 28 Y NT TY OU UN X C CO FA N IR TO FA ING L R A FA LO DI ST DULLES AIRPORT D AN YL IA AR IN M IRG V RI MA RY CT OF LA N D CO LU M BI A HERNDON HERNDON LOUDOUN COUNTY 50 FAIRFAX COUNTY GREENSBORO MCLEAN TYSONS CORNER 286 ARLINGTON COUNTY TYSONS 495 WEST FALLS CHURCH EAST FALLS CHURCH VIR 29 66 66 BALLSTON ALGONKIAN P 50 FAIRFAX CENTER IA CLARENDON VIRGINIA SQUARE - GMU R-B CORRIDOR 495 VIENNA 66 AR 28 29 GIN ROSSLYN COURT HOUSE DUNN LORING/ MERRIFIELD 123 ROUTE 28 SOUTH 50 50 PENTAGON CRYSTAL CITY MERRIFIELD AY KW 29 395 RONALD REAGAN WASHINGTON NATIONAL NATIONAL AIRPORT AIRPORT 236 I-395 CORRIDOR 286 7 FAIR FAX COUN TY PRINCE WILLIAM C O POTOMAC RIVER VAN DORN STREET UNT Y EISENHOWER AVENUE KING STREET 1 OLD TOWN ALEXANDRIA EISENHOWER AVENUE PRINCE WILLIAM COUNTY 95 FRANCONIA/ SPRINGFIELD SPRINGFIELD/ NEWINGTON cushmanwakefield.com 5

Top Transactions Key Lease Transactions Q1 2017 PROPERTY SF TENANT TRANSACTION TYPE SUBMARKET 2200 Clarendon Boulevard 235,000 Arlington County Renewal Courthouse/Clarendon 1812 North Moore Street 206,000 Nestle New Lease Rosslyn 12930 Worldgate Drive 88,000 Serco New Lease Reston/Herndon Key Sales Transactions Q1 2017 PROPERTY SF SELLER / BUYER PRICE / $PSF SUBMARKET 2521 & 2530 S. Clark Street - Pentagon Center 8251, 8255, 8285 Greensboro Drive - Tysons Metro Center 912,000 Beacon Capital Partners / GIC $379,500,000 / $416 Crystal City 764,000 Beacon Capital Partners / Meridian Capital $227,000,000 / $297 Tysons 4801 & 4803 Stonecroft Boulevard 323,000 Duke Realty / Drawbridge Realty $73,500,000 / $227 Route 28 South Northern Virginia Office Market Net Absorption - Deliveries -, First Quarter 2017 Northern Virginia Office Market Inventory and by Submarket, First Quarter 2017 Square Feet, 000 s 5,000 4,000 3,000 2,000 1,000 0-1,000-2,000-3,000 07 08 09 10 11 12 13 14 15 16 17 25% 20% 15% 10% 5% 0% Rate MSF 30 25 20 15 10 5 0 Alexandria RB Corridor Crystal City Tysons Reston/Herndon 50/66 Rte. 28 South Loudoun 30% 25% 20% 15% 10% 5% 0% Rate Net Absorption Deliveries Rate Leased Vacant Rate Cushman & Wakefield 6

Alexandria Market Indicators *Arrows = Current Qtr Trend 24.0% Net Absorption (87,621 SF) Under Construction 720,000 SF Deliveries 0 SF $31.03 FS remains relatively unchanged quarter-over-quarter in all three of Alexandria s submarkets, currently standing at 9.3% in Old Town, 39.9% in I-395 Corridor, and 35.1% in Eisenhower. The largest move-out was that of American Diabetes Association, which vacated 85,000 SF at 1701 North Beauregard Street as they move to the same-sized footprint in Crystal City. 4900 Seminary Road gave back 27,200 SF in the first quarter as it lost several tenants, but these various move-outs were counteracted by small-medium move-ins in several other buildings. Direct asking rents for all office classes in all three submarkets remain relatively unchanged quarter-over-quarter. I-395 and Eisenhower have experienced little rental rate changes over the past several years, a different story than that of Class A product in Old Town, where rates have increased from $35.46 in the first quarter of 2015 to the current $39.29. Old Town s Class A vacancy rate of 7.2% is 600 basis points (BP) lower than that of the nextlowest submarket, Ballston. Square Feet, 000 s Net Absorption Deliveries 800 30% 600 25% 400 20% 200 15% 0-200 10% -400 5% -600 0% 07 08 09 10 11 12 13 14 15 16 17 Net Absorption Deliveries Rate Old Town Rate New Leasing Activity Rate New leasing activity was low in the first quarter, at only 23,000 SF for all of Alexandria. The largest lease was a 9,900 SF renewal by Burke Consortium at 5500 Cherokee Avenue, followed by a 6,400 SF renewal by Pragmatics at 2051 Jamieson Avenue, and a 6,300 SF new lease by American Moving and Storage Association at 2800 Eisenhower Avenue. There were no significant office sales transactions in the first quarter of 2017. MSF 1.20 1.00 0.80 0.60 0.40 0.20 0.00 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Q1 Q2 Q3 Q4 $39 $37 Outlook With a strong base of low vacancy and a consistent tenant renewals in Old Town, bolstered by new development and approvals in the periphery Potomac Yards and Carlyle areas of Alexandria, the market is positioning itself to bolster its roster of buildings well-suited for smaller professional tenants with large-scale development positioned towards larger, regional users. Full Service PSF $35 $33 $31 $29 $27 $25 2012 2013 2014 2015 2016 2017 Class A Class B cushmanwakefield.com 7

RB Corridor Market Indicators *Arrows = Current Qtr Trend 22.2% Net Absorption 80,372 SF Under Construction 862,729 SF Deliveries 0 SF $41.92 FS The Rosslyn-Ballston (RB) Corridor experienced 80,372 SF of positive absorption in the first quarter of 2017, and that allowed vacancy to decline to 22.2% the submarket s lowest vacancy rate in over two years. WordVu and several smaller users took occupancy at 1400 Key Boulevard in Rosslyn, and several other small-medium users occupied buildings throughout the RB Corridor. The largest move-out was that of the GSA which vacated 39,000 SF at 1101 Wilson Boulevard. Cadmus Group relocated its 25,000-SF footprint from 1555 Wilson Boulevard to 3100 Clarendon Boulevard, opting for a Class A building in Clarendon over a Class B building in Rosslyn. The Courthouse/Clarendon submarket currently boasts the lowest vacancy in the RB Corridor at 16.8% followed by Ballston at 19.3% and Rosslyn at 28.1%. Ballston s vacancy rate should continue to decline throughout 2017 with new supply low and large impending move-ins including those of Applied Predictive (99,000 SF) and Amazon (50,000 SF) at 4250 North Fairfax Drive, and Willis Towers (55,000 SF) at 901 North Glebe Road. Net Absorption Deliveries Square Feet, 000 s 1,000 800 600 400 200 0-200 -400-600 -800 07 08 09 10 11 12 13 14 15 16 17 Net Absorption Deliveries Rate New Leasing Activity 1.60 25% 20% 15% 10% 5% 0% Rate Throughout 2015 and 2016, direct rental rates steadily declined in the RB Corridor as the market contended with an extended period of high vacancy by lowering rental rates in commodity product. However, rental rates rose in the first quarter of 2017, closing at $42.03 PSF, bucking this recent trend. MSF 1.40 1.20 1.00 0.80 One of Northern Virginia s (NoVA) most significant leases of the past several years occurred in the first quarter of 2017: Nestle announced plans to relocate from Los Angeles into 206,000 SF at 1812 North Moore Street in Rosslyn. It will occupy 40.0% of this building, and is expected to hire hundreds of employees locally. The RB Corridor was also home to the largest renewal of the first quarter of 2017, as Arlington County recommitted to 235,000 SF of administrative offices at 2200 Clarendon Boulevard. 0.60 0.40 0.20 0.00 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Q1 Q2 Q3 Q4 Outlook Office construction in the RB Corridor is at its highest point since 2012. Each submarket in the RB Corridor has one building under construction. Rosslyn s 521,000-SF CEB Tower, Courthouse/Clarendon s 175,000-SF 2311 Wilson Boulevard and Ballston s 167,000-SF 1000 North Glebe Road all had one prelease before construction began, and currently these three projects combined are 63.0% preleased, preventing a large increase in vacancy when they deliver. Full Service PSF $50 $48 $46 $44 $42 $40 $38 $36 $34 $32 2012 2013 2014 2015 2016 2017 Class A Class B Cushman & Wakefield 8

Crystal City/Pentagon City Market Indicators *Arrows = Current Qtr Trend 21.8% Net Absorption 144,529 SF Under Construction 100,000 SF Deliveries 0 SF $36.41 FS in the Crystal City submarket at the end of the first quarter of 2017 was 21.8% a 1.3-percentage-point decline from the fourth quarter of 2016 and its lowest level since the fourth quarter of 2015. Class A vacancy was 16.9%, much lower than the Class B vacancy rate of 35.1%. Direct average asking rents continued to contract from their high of $41.00 per square foot (PSF) in 2013 to the current $36.50 PSF. Rents have decreased 7.8% over the past two years and 4.5% over the past year alone, as older Class B buildings continue to discount their asking rates. Absorption was a positive 144,529 square feet (SF) in the first quarter of 2017 as the submarket clawed back half of the 288,000 SF of net negative move-out activity experienced in 2016. The largest move-in was that of the Metropolitan Washington Airports Authority which occupied 74,000 SF at 2733 Crystal Drive. The Federal Emergency Management Agency (FEMA) vacated approximately 100,000 SF at 1800 Bell Street to backfill about the same size footprint of former Federal Supply Services space at 2200 Crystal Drive. Square Feet, 000 s Net Absorption Deliveries 1,000 500 0-500 -1,000-1,500-2,000 07 08 09 10 11 12 13 14 15 16 17 Net Absorption Deliveries Rate New Leasing Activity 30% 25% 20% 15% 10% 5% 0% Rate New leasing activity for the quarter totaled 70,621 SF lower than average and about half of the 3-year quarterly running average. Kaiser Permanente s 42,000-SF lease at the under-construction 3000 Potomac Avenue was followed by a couple of expansions: Booz Allen s 10,384-SF deal at 1550 Crystal Drive and Lockheed Martin s 8,374-SF lease at 2461 South Clark Street. MSF 1.00 0.90 0.80 0.70 0.60 0.50 0.40 0.30 0.20 0.10 0.00 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Outlook Q1 Q2 Q3 Q4 With the Potomac Yard Metro station scheduled to open in 2020, the surrounding area is beginning to react and transform. The National Industries for the Blind s (NIB) 100,000-SF building at 3000 Potomac Yard began construction at the end of 2016 and is due for completion in the second quarter of 2018. Upon delivery, this will be the Crystal City submarket s first new building in five years. NIB committed to 58,000 SF and Kaiser Permanente signed in the first quarter of 2017 for the remaining 42,000 SF to house its administrative offices and a health clinic. JBG and MRP have plans for an additional 10.0 MSF of development in the area. In addition, Crystal City is becoming a destination for price concious DC tenants that are having trouble finding opportunities in the CBD. $44 $42 Full Service PSF $40 $38 $36 $34 $32 2012 2013 2014 2015 2016 2017 Class A Class B cushmanwakefield.com 9

Tysons Corner Market Indicators *Arrows = Current Qtr Trend 21.5% Net Absorption (15,532 SF) Under Construction 1,555,419 SF Deliveries 0 SF $31.90 FS Although overall vacancy in Tysons currently stands at 21.5%, newer and well-placed buildings continue to lead in absorption and rent growth. Class A direct asking rents for the submarket rose 3.3% quarter over quarter to close the first quarter of 2017 at $38.22 per square foot (PSF), as rates at 8300, 8401, and 8405 Greensboro Drive and 1600 International Drive rose in the first quarter of the year. The Greensboro Drive/Hill minimarket in Tysons has attracted strong leasing activity in relet space, and owners are taking the opportunity to push rents. Notable first quarter 2017 leasing transactions included Acumen s 46,000-SF new lease at 8280 Greensboro Drive, NTT Data s 26,000-SF renewal and 26,000-SF expansion at 1660 International Drive, Nolij Consulting s 19,000-SF new lease at 8609 Westwood Center Drive and Capital Automotive s 15,000- SF new lease at 8484 Westpark Drive. Absorption for the first quarter of 2017 was flat registering negative 15,532 SF, while the vacancy rate declined quarter over quarter by 20 basis points (BP) to close the first quarter of 2017 at 21.5%. 7950 Jones Branch Drive, purchased by London-based Tamares in late 2015, put an additional 76,000 SF on the market, as Tegna continued to consolidate before its planned relocation to the under-construction 8350 Broad Street in the first half of 2019. Elbit Systems vacated 27,000 SF at 8200 Greensboro Drive as it consolidated into half of this size footprint at 1768 Business Center Drive. But positive absorption more than made up for these move-outs: WeWork took possession of its 92,000-SF suite on the lower three floors of 1775 Tysons Boulevard, Charles Schwab and Holland & Knight moved into a combined 35,000 SF at 1600 Tysons Boulevard, and Net esolutions moved into 24,000 SF at 8180 Greensboro Drive. Tysons Metro Center, the three-building complex consisting of 8251, 8255, and 8281 Greensboro Drive, was successfully traded from Beacon Capital Partners to Meridian Group. The properties, with a combined total of 763,000 SF, sold for $227M ($297/SF). The project is being rebranded as Eastboro and includes 1.0 MSF of additional development rights which Meridian will work into its under-construction Boro project next door. 8300 Greensboro Drive and 1600 International Drive also sold in first quareter of 2017, with Rockpoint Group purchasing both properties from American Realty/Quadrangle for a combined $90M ($243/SF). Square Feet, 000 s MSF Net Absorption Deliveries 1,000 800 600 400 200 0-200 -400-600 -800 25% 20% 15% 10% 5% 0% 07 08 09 10 11 12 13 14 15 16 17 Net Absorption Deliveries Rate New Leasing Activity 1.60 1.40 1.20 1.00 0.80 0.60 0.40 0.20 0.00 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Q1 Q2 Q3 Q4 Rate $50 Outlook Many buildings in the Greensboro Drive (The Hill) area of Tysons are continuing to experience positive absorption, buoyed by long-term commitments from Wells Fargo and SAIC. Indeed, demand is now outpacing supply in this minimarket. A high concentration of tech tenants and employees, along with an increase in retail options and the excitement generated by The Boro project, should lead to continued strong demand for space. With a current dearth of large- block options, leasing should begin to pick up in projects a bit farther from Greensboro Metro station, such as Westpark Corporate Center and projects along International Drive. Full Service PSF $45 $40 $35 $30 $25 2012 2013 2014 2015 2016 2017 Class A Class B Cushman & Wakefield 10

Reston/Herndon Market Indicators *Arrows = Current Qtr Trend 16.7% Net Absorption (127,990 SF) Under Construction 354,913 SF Deliveries 0 SF $28.49 FS The Reston/Herndon submarket maintains the third lowest vacancy rate among NoVA s 15 submarkets (16.7%), trailing only the small and off-metro markets of Old Town and Loudoun. The submarket experienced 128,000 SF of negative absorption in the first quarter 2017, as Customs and Border Patrol vacated 81,000 SF at 12858 Worldgate Drive and CDW vacated 35,000 SF at 13461 Sunrise Valley Drive. However, a handful of moveins helped offset net out-migrations, including: the City of Herndon Acquisition Services Director occupying 37,000 SF and Family Practice Centers 20,000 SF at 381 Elden Street, and AIG, which took possession of 17,000 SF at 10780-10790 Parkridge Boulevard. But these move-ins were not enough to offset the move-outs. New leasing activity in the first quarter of 2017 totaled 277,842 SF, in line with the 3-year quarterly running average. The largest deals of the quarter were Unisys s 105,000-SF renewal at 11720 Plaza America Drive, Serco s new 88,000-SF lease at 12930 Worldgate Drive, Cooley s 61,000-SF renewal at 11951 Freedom Drive and NCI s consolidation and renewal into 50,000 SF at 11730 Plaza America Drive. Recent tightening of space and rising rents around Metro stations in Tysons is expected to continue around future Reston and Herndon stations upon delivery in 2020. Square Feet, 000 s Net Absorption Deliveries 2,500 2,000 1,500 1,000 500 0-500 07 08 09 10 11 12 13 14 15 16 17 Net Absorption Deliveries Rate New Leasing Activity 2.50 2.00 1.50 25% 20% 15% 10% 5% 0% Rate MSF 1.00 0.50 0.00 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Q1 Q2 Q3 Q4 Outlook The Reston/Herndon submarket has not delivered a Class A office building since 2009 when Boston Properties completed The College Board s Reston operations at 11955 Democracy Drive. The first new delivery will be Comstock Partners 350,000-SF Reston Station project scheduled for the third quarter of 2017. While there are many options for smaller users, the lack of high quality, big blocks of space should start to bring negotiation leverage towards landlords. After five to seven years of elevated vacancy and increasing concessions throughout Northern Virginia, the Silver Line markets are expected to recover the quickest, as landlords in higher-quality buildings in amenity-rich locations are beginning to push rents upward. $32 $30 Full Service PSF $28 $26 $24 $22 $20 2012 2013 2014 2015 2016 2017 Class A Class B cushmanwakefield.com 11

Route 50/66 Market Indicators *Arrows = Current Qtr Trend 23.0% Net Absorption (205,469 SF) Under Construction 385,000 SF Deliveries 0 SF $26.82 FS The Fairfax/Oakton/Vienna submarket s vacancy experienced a slight year-over-year decrease of 90 basis points (BP), closing the first quarter of 2017 at 23.8%. Helping to chip away at availability, Data Systems Analysts and Zeta Associates moved into a combined 27,000 SF at 10300 Eaton Place, as did a handful of smaller users into other locations in the submarket. New leasing activity for the quarter totaled 51,090 SF, making it an above-average quarter for leasing volume. The largest lease was that of The Peterson Company which signed a 25,000-SF new deal at the building it is constructing at 4097 Monument Corner Drive. The company will be joining Apple Federal Credit Union which signed a 93,000-SF prelease at the building when construction began in the third quarter of 2016. This the first new competitive office building in the submarket since 2009 is now 75% leased, with anticipated completion in the third quarter of this year. Other leases in Q1 2017 included the 15,000-SF new lease signed by Lender Service Provider at 10560 Arrowhead Drive, a 9,500-SF renewal by Crawford & Company at 12150 Monument Drive, and a new 7,500-SF lease signed by Service Source at 10455 White Granite Drive. Following declining vacancy and healthy leasing activity, Class A rental rates rose slightly in the first quarter of 2017, to $30.28 per square foot (PSF), mainly due to price increases at 3875 Fair Ridge and 12150 Monument Drive. There was one large capital markets transaction in the submarket this quarter, as First Potomac Realty Trust sold 4114 Legato Drive to Beacon Capital Partners for $13,700,000 ($64/SF). This building had been fully leased to CACI for 20 years before they vacated in the fourth quarter of 2016. The Merrifield market experienced a large quarter-over-quarter jump in vacancy of 440 basis points (BP), closing the first quarter of 2017 at 21.9%. This is due to the departure of Noblis from the entirety of 3150 Fairview Park Drive, as they move to 2002 Edmund Haley Drive in Reston. Direct asking rental rates have remained steady over the past few years, and currently stand at $32.17 in Class A product and $24.51 in Class B product. The largest least of the quarter was a 46,200 SF renewal by the GSA at 2675 Prosperity Avenue, followed by a 28,000 SF new lease by Cognosante at 3110 Fairview Park Drive. Two buildings in the Fairview Park area of the submarket transacted in the first quarter. 3120 Fairview Park Drive sold from Corporate Office Properties Trust (COPT) to a JV between Velocis and Moore & Associates for $39,000,000 ($205/SF) as COPT pivots its portfolio away from traditional suburban office buildings to specialized highsecurity GSA and contractor assets. 3160 Fairview Park Drive also sold from Computer Sciences Corporation (CSC) to Washington Property Company for $7,150,000 ($62/SF) as the contractor embraces a leasing model instead of an ownership one. Outlook Noblis departure from the entirety of 3150 Fairview Park Drive follows a trend of contractors, such as CSC, moving from Merrifield to the Silver Line markets of Reston, Herndon, and Tysons. Building owners with large vacancies of older space may wish to court contractors with recent award wins or else invest in capital upgrades in order to stay competitive for private users. Square Feet, 000 s Net Absorption Deliveries 400 200 0-200 -400-600 -800 07 08 09 10 11 12 13 14 15 16 17 Net Absorption Deliveries 30% 25% 20% 15% 10% 5% 0% Merrifield Rate Fairfax/Oakton/Vienna Rate New Leasing Activity 1.40 1.20 1.00 MSF 0.80 0.60 0.40 0.20 0.00 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Q1 Q2 Q3 Q4 $34 $32 Full Service PSF $30 $28 $26 $24 $22 2012 2013 2014 2015 2016 2017 Merrifield/Route 50 Fairfax/Oakton/Vienna Rate Cushman & Wakefield 12

Route 28 South/Chantilly Market Indicators *Arrows = Current Qtr Trend 19.8% Net Absorption 18,003 SF Under Construction 665,000 SF Deliveries 0 SF $25.50 FS The Route 28 South submarket got off to a strong start in 2017. declined to 19.8% in the first quarter of 2017 the first time since 2014 that the submarket s vacancy has been under 20.0%. Leasing activity during the first quarter of 2017 was dominated by two large deals: Integrity Applications 104,000-SF renewal at 15020 Conference Center Drive and the FBI s 64,000- SF renewal and 32,000-SF expansion at 14360 Newbrook Drive, as it and other security and defense-related agencies continue to choose the submarket for expansions beyond their main headquarters locations. The largest new lease was that of Department of Defense contractor SOC which took 44,000 SF at 3975 Virginia Avenue. Direct asking rental rates dipped less than 1.0% in the quarter to $25.76 PSF on a full-service basis; they remain in line with the 3-year running average. There was one office building sale in the Route 28 submarket 14560 Avion Parkway sold from Gramercy to Boyd Watterson for $25,250,000 ($356/SF). This building is fully leased to government tenants. Net Absorption Deliveries Square Feet, 000 s 1,200 1,000 800 600 400 200 0-200 -400-600 07 08 09 10 11 12 13 14 15 16 17 Net Absorption Deliveries Rate New Leasing Activity 0.90 0.80 0.70 0.60 30% 25% 20% 15% 10% 5% 0% Rate MSF 0.50 0.40 0.30 0.20 0.10 0.00 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Q1 Q2 Q3 Q4 $30 Outlook Two new buildings are under construction in Route 28 South: a 425,000-SF building on the Dulles Discovery campus which is already claimed by a GSA user, and a speculative 240,000-SF building at 14757 Conference Center Drive in the Westfields area of the submarket for which the most likely suitors are similar security-related contractors and agencies. Leasing activity amongst government and contractor users continues to provide a solid base for the submarket. Full Service PSF $28 $26 $24 $22 $20 $18 2012 2013 2014 2015 2016 2017 Class A Class B cushmanwakefield.com 13

Loudoun County Market Indicators *Arrows = Current Qtr Trend 16.0% Net Absorption 68,411 SF Under Construction 72,000 SF Deliveries 64,800 SF $23.85 FS in the 5.1 MSF Loudoun County office submarket continues its multi-year downward trend, as it has moved steadily from the 30.0% mark in 2010, to 23.9% in 2014, settling on 16.0% in the first quarter of 2017. Absorption in the first quarter was 68,400 square feet (SF), as a variety of small to medium users moved into 21000 Atlantic Boulevard, 22980 Indian Creek Drive, and 45195 Business Court. New leasing activity was low for the quarter the largest deal was a 12,200-SF new lease from Epsilon Data Management at 19775 Belmont Executive Plaza and a 7,010- SF renewal by Lea + Elliott at 44965 Aviation Drive, followed by various smaller professional firm deals. Direct asking rental rates for Class A product has fallen slightly over the past several years, and currently stands at $25.55 per square foot (PSF) on a full service basis. However, this is mainly due to lease-up of newer, more expensive space. Direct asking rental rates for Class B product stands at $21.83 PSF on a full service basis, not too far behind Class A. Net Absorption Deliveries Square Feet, 000 s 600 500 400 300 200 100 0-100 07 08 09 10 11 12 13 14 15 16 17 Net Absorption Deliveries Rate New Leasing Activity 0.90 0.80 0.70 0.60 25% 20% 15% 10% 5% 0% Rate MSF 0.50 0.40 0.30 0.20 0.10 0.00 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Q1 Q2 Q3 Q4 $28 Outlook As Loudoun County is one of the smallest Northern Virginia office submarkets by inventory, continued positive absorption and little slack inventory may prompt further office development. The question is, with construction costs at record levels, are achievalbe rents enough to justify continued new development. Many tenants in the market have a stated preference for walkable, town centerstyle locations, one example being the only competitive office building under construction in the submarket: 20408 Bashan Drive. This 72,000-SF property is located at One Loudoun and has successfully leased 50.0% of its rentable Full Service PSF $26 $24 $22 $20 $18 $16 2012 2013 2014 2015 2016 2017 Class A Class B Cushman & Wakefield 14

Appendix Table Summaries Metro Washington Office Market Summary: First Quarter 2017p Inventory Total Vacant Space Rate Q1 2017 Absorption Year to Date Absorption Metro Washington Office Market Summary 15 Employment Data 15 Office Availability,, and Net Absorption 16 Trailing 12-Month Data 17 Historical Year-End Data 18 Market Statistics by Class 19-20 Survey of New Office Space by Submarket 21-24 Methodology & Definitions 25 Washington, DC 108,470,369 13,382,980 12.3% 43,356 43,356 Northern Virginia 130,065,770 27,762,560 21.3% -194,557-194,557 Suburban Maryland 59,331,631 11,619,715 19.6% 75,294 75,294 Regional Totals 297,867,770 52,765,255 17.7% -75,907-75,907 Metro Washington Current Employment Data Nonfarm Employment (Jan-Mar 2016) Nonfarm Employment (Jan-Mar 2017p) Jobs Added/ Lost* Percent Change Washington, DC 780,033 787,800 7,767 1.0% Northern Virginia 1,429,000 1,458,467 29,467 2.1% Suburban Maryland 985,967 1,012,667 26,700 2.7% Regional Totals 3,212,200 3,269,167 56,967 1.8% SOURCE: U.S. Bureau of Labor Statistics (Not seasonally adjusted) * Average per year to date p - preliminary cushmanwakefield.com 15

Appendix Office Availability,, and Net Absorption, First Quarter 2017p Total Inventory New/Relet Space Available Sublet Space Available Total Space Available Rate New/Relet Absorption Sublet Absorption Total Net Absorption Rosslyn 8,638,623 2,346,812 78,342 2,425,154 28.1% (38,793) 6,972 (31,821) Courthouse/ Clarendon/Virginia Square 5,531,747 872,515 56,524 929,039 16.8% 81,988 24,804 106,792 Ballston 7,095,248 1,337,054 33,966 1,371,020 19.3% (10,486) 15,887 5,401 Crystal City/Pentagon City 10,677,069 2,289,078 38,122 2,327,200 21.8% 157,300 (12,771) 144,529 Arlington County 31,942,687 6,845,459 206,954 7,052,413 22.1% 190,009 34,892 224,901 RB Corridor 21,265,618 4,556,381 168,832 4,725,213 22.2% 32,709 47,663 80,372 Old Town 7,991,666 675,768 64,461 740,229 9.3% (17,656) 6,800 (10,856) I-395 Corridor 6,058,050 2,350,125 7,162 2,357,287 38.9% (56,187) 0 (56,187) Huntingon/Eisenhower 2,423,709 829,057 20,822 849,879 35.1% (13,778) 0 (13,778) City of Alexandria 16,473,425 3,854,950 92,445 3,947,395 24.0% (87,621) 6,800 (80,821) Inside the Beltway 48,416,112 10,700,409 299,399 10,999,808 22.7% 102,388 41,692 144,080 Annandale/Baileys 1,369,626 415,101 12,584 427,685 31.2% (16,703) 730 (15,973) Merrifield/Route 50 6,608,194 1,362,138 86,768 1,448,906 21.9% (271,418) (21,244) (292,662) Fairfax/Oakton/Vienna 9,509,467 2,161,673 100,863 2,262,536 23.8% 87,075 118 87,193 Tysons Corner 22,920,597 4,769,163 158,413 4,927,576 21.5% (28,211) 12,679 (15,532) Reston/Herndon 24,230,837 3,551,332 496,436 4,047,768 16.7% (126,236) (1,754) (127,990) Rt 28 S/Chantilly 8,675,922 1,531,102 188,461 1,719,563 19.8% 18,003 0 18,003 Springfield 3,268,420 1,109,218 8,421 1,117,639 34.2% (66,320) 6,233 (60,087) Fairfax County 76,583,063 14,899,727 1,051,946 15,951,673 20.8% (403,810) (3,238) (407,048) 50-66 Corridor 16,117,661 3,523,811 187,631 3,711,442 23.0% (184,343) (21,126) (205,469) Loudoun County 5,066,595 753,230 57,849 811,079 16.0% 84,245 (15,834) 68,411 Outside the Beltway 81,649,658 15,652,957 1,109,795 16,762,752 20.5% (319,565) (19,072) (338,637) Northern Virginia 130,065,770 26,353,366 1,409,194 27,762,560 21.3% (217,177) 22,620 (194,557) 1 The Rosslyn/Ballston (R/B) corridor is comprised of Rosslyn, Clarendon/Courthouse, Virginia Square, and Ballston submarkets. 2 Inside the Beltway is comprised of Arlington County and Alexandria/Outside the Beltway is comprised of Fairfax and Loudoun Counties 3 The 50/66 corridor is comprised of Merrifield, Vienna, Oakton, Fairfax Center, and Fairfax City submarkets. ****New Space Available and New Space Absorption based on buildings delivered 2005 to present P - Preliminary Cushman & Wakefield 16

Appendix Trailing 12-Month Data Total Office Inventory Office Rate Total Office Absorption 2nd Qtr 2016 3rd Qtr 2016 4th Qtr 2016 1st Qtr 2017 2nd Qtr 2016 3rd Qtr 2016 4th Qtr 2016 1st Qtr 2017 2nd Qtr 2016 3rd Qtr 2016 4th Qtr 2016 1st Qtr 2017 Rosslyn 8,638,623 8,638,623 8,638,623 8,638,623 27.7% 27.8% 27.7% 28.1% 7,996 (10,550) 6,012 (31,821) Courthouse/ Clarendon/ Virginia Square 5,531,747 5,531,747 5,531,747 5,531,747 17.6% 18.1% 18.7% 16.8% 54,119 2,303 (31,839) 106,792 Ballston 7,095,248 7,095,248 7,095,248 7,095,248 21.7% 19.4% 19.4% 19.3% (42,416) 106,082 (1,437) 5,401 Crystal City/ Pentagon City 10,945,402 10,945,402 10,677,069 10,677,069 23.6% 22.3% 23.1% 21.8% (63,293) 140,289 (269,571) 144,529 Arlington County 32,211,020 32,211,020 31,942,687 31,942,687 23.2% 22.4% 22.8% 22.1% (43,594) 238,124 (296,835) 224,901 RB Corridor 21,265,618 21,265,618 21,265,618 21,265,618 23.1% 22.5% 22.6% 22.2% 19,699 97,835 (27,264) 80,372 Old Town 7,991,666 7,991,666 7,991,666 7,991,666 9.2% 8.4% 9.1% 9.3% (7,589) 67,124 (57,706) (10,856) I-395 Corridor 6,058,050 6,058,050 6,058,050 6,058,050 38.7% 38.7% 38.0% 38.9% 43,842 (52) 46,197 (56,187) Huntington/ Eisenhower 2,761,709 2,423,709 2,423,709 2,423,709 41.4% 34.6% 34.5% 35.1% (551) (14,141) 1,827 (13,778) City of Alexandria 16,811,425 16,473,425 16,473,425 16,473,425 25.2% 23.4% 23.5% 24.0% 35,702 52,931 (9,682) (80,821) Inside the Beltway 49,022,445 48,684,445 48,416,112 48,416,112 23.9% 22.8% 23.0% 22.7% (7,892) 291,055 (306,517) 144,080 Annandale/Baileys 1,369,626 1,369,626 1,369,626 1,369,626 28.9% 29.5% 30.1% 31.2% 35,535 (7,771) (7,853) (15,973) Merrifield/Route 50 6,608,194 6,608,194 6,608,194 6,608,194 17.1% 19.0% 17.5% 21.9% 23,963 (104,618) 96,690 (292,662) Fairfax/Oakton/Vienna 9,509,467 9,509,467 9,509,467 9,509,467 22.3% 23.1% 24.7% 23.8% (66,305) (96,712) (157,072) 87,193 Tysons Corner 23,055,893 23,055,893 22,920,597 22,920,597 20.3% 20.7% 21.7% 21.5% 212,913 118,512 (204,201) (15,532) Reston/Herndon 24,290,837 24,230,837 24,230,837 24,230,837 16.7% 16.6% 16.2% 16.7% 96,870 (31,500) 100,592 (127,990) Rt 28 S/Chantilly 8,675,922 8,675,922 8,675,922 8,675,922 24.1% 21.6% 21.0% 19.8% 80,273 246,981 52,326 18,003 Springfield 3,268,420 3,268,420 3,268,420 3,268,420 34.5% 32.3% 32.4% 34.2% (41,660) 17,106 (1,848) (60,087) Fairfax County 76,778,359 76,718,359 76,583,063 76,583,063 20.3% 20.3% 20.5% 20.8% 341,589 141,998 (121,366) (407,048) 50-66 Corridor 16,117,661 16,117,661 16,117,661 16,117,661 20.2% 21.4% 21.8% 23.0% (42,342) (201,330) (60,382) (205,469) Loudoun County 5,121,795 5,121,795 5,121,795 5,066,595 18.4% 18.2% 18.2% 16.0% 37,123 9,935 (3,527) 68,411 Outside the Beltway 81,900,154 81,840,154 81,704,858 81,649,658 20.2% 20.2% 20.3% 20.5% 378,712 151,933 (124,893) (338,637) Northern Virginia 21.6% 21.1% 21.3% 21.3% 370,820 442,988 (431,410) (194,557) 1 The Rosslyn/Ballston (R/B) corridor is comprised of Rosslyn, Clarendon/Courthouse, Virginia Square, and Ballston submarkets. 2 Inside the Beltway is comprised of Arlington County and Alexandria/Outside the Beltway is comprised of Fairfax and Loudoun Counties. 3 The 50/66 corridor is comprised of Merrifield, Vienna, Oakton, Fairfax Center, and Fairfax City submarkets. 4 The I-395 and Springfield/Newington submarkets were updated in the second quarter of 2012 with additional inventory. p- preliminary cushmanwakefield.com 17

Appendix Historical Year-End Data Total Office Inventory Office Rate Total Annual Absorption 2015 2016 2017p 2015 2016 2017p 2015 2016 2017p Rosslyn 8,613,043 8,638,623 8,638,623 29.1% 27.7% 28.1% 159,209 9,470 (31,821) Courthouse/Clarendon/ Virginia Square 5,531,747 5,531,747 5,531,747 21.7% 18.7% 16.8% (81,594) (7,256) 106,792 Ballston 7,076,618 7,095,248 7,095,248 18.9% 19.4% 19.3% 127,316 60,792 5,401 Crystal City/Pentagon City 10,945,402 10,677,069 10,677,069 21.3% 23.1% 21.8% 346,228 (462,146) 144,529 Arlington County 32,166,810 31,942,687 31,942,687 22.9% 22.8% 22.1% 551,159 (399,140) 224,901 RB Corridor 21,221,408 21,265,618 21,265,618 23.7% 22.6% 22.2% 204,931 63,006 80,372 Old Town 8,191,666 7,991,666 7,991,666 10.2% 9.1% 9.3% (82,120) (55,877) (10,856) I-395 Corridor 6,058,050 6,058,050 6,058,050 37.3% 38.0% 38.9% (227,461) 136,184 (56,187) Huntingon/Eisenhower 2,742,707 2,423,709 2,423,709 42.3% 34.5% 35.1% (17,885) (11,038) (13,778) City of Alexandria 16,992,423 16,473,425 16,473,425 25.0% 23.5% 24.0% (327,466) 69,269 (80,821) Inside the Beltway 49,159,233 48,416,112 48,416,112 23.6% 23.0% 22.7% 223,693 (329,871) 144,080 Annandale/Baileys 1,358,705 1,369,626 1,369,626 30.4% 30.1% 31.2% (97,367) 12,058 (15,973) Merrifield/Route 50 6,608,194 6,608,194 6,608,194 20.2% 17.5% 21.9% (106,447) 112,725 (292,662) Fairfax/Oakton/Vienna 9,505,603 9,509,467 9,509,467 17.4% 24.7% 23.8% 5,921 (477,161) 87,193 Tysons Corner 23,240,699 22,920,597 22,920,597 19.1% 21.7% 21.5% 67,379 (76,977) (15,532) Reston/Herndon 24,690,837 24,230,837 24,230,837 16.4% 16.2% 16.7% 268,104 266,554 (127,990) Rt 28 S/Chantilly 9,242,182 8,675,922 8,675,922 24.8% 21.0% 19.8% 41,794 431,906 18,003 Springfield 3,268,420 3,268,420 3,268,420 35.1% 32.4% 34.2% 73,408 (28,250) (60,087) Fairfax County 77,914,640 76,583,063 76,583,063 19.7% 20.5% 20.8% 252,792 240,855 (407,048) 50-66 16,113,797 16,117,661 16,117,661 18.5% 21.8% 23.0% (100,526) (364,436) (205,469) Loudoun County 5,121,795 5,121,795 5,066,595 20.3% 18.2% 16.0% 74,754 40,004 68,411 Outside the Beltway 83,036,435 81,704,858 81,649,658 19.7% 20.3% 20.5% 327,546 280,859 (338,637) Northern Virginia 132,195,668 130,120,970 130,065,770 21.2% 21.3% 21.3% 551,239 (49,012) (194,557) 1 Inside the Beltway is comprised of Arlington County and Alexandria/Outside the Beltway is comprised of Fairfax and Loudoun Counties 2 The Rosslyn/Ballston (R/B) corridor is comprised of Rosslyn, Clarendon/Courthouse, Virginia Square, and Ballston submarkets. 3 The 50/66 corridor is comprised of Merrifield, Vienna, Oakton, Fairfax Center, and Fairfax City submarkets. 4 The I-395 and Springfield/Newington submarkets were updated in the second quarter of 2012 with additional inventory. Cushman & Wakefield 18

Market Statistics Northern Virginia 1st Quarter 2017 Market Statistics Buildings Total Inventory (SF) New/Relet (%) Sublet (%) Total * (%) Net Absorption Current QTR (SF) Under Construction (SF) Average (FS) Alexandria Class A 46 7,855,196 19.9% 0.7% 20.7% (90,989) 720,000 $34.68 B 64 6,746,020 31.1% 0.4% 31.5% 26,700 - $29.80 C 27 1,872,209 10.2% 0.6% 10.8% (16,532) - $24.88 TOTAL 137 16,473,425 23.4% 0.6% 24.0% (80,821) 720,000 $31.03 RB Corridor Class A 49 12,757,247 19.4% 1.0% 20.4% 64,141 862,729 $44.19 B 35 6,227,522 23.1% 0.4% 23.6% (2) - $41.79 C 19 2,280,849 28.2% 0.6% 28.8% 16,233 - $35.43 TOTAL 103 21,265,618 21.4% 0.8% 22.2% 80,372 862,729 $41.92 Crystal City/Pentagon City Class A 25 7,794,322 16.6% 0.3% 16.9% 156,634 100,000 $38.79 B 13 2,882,747 34.6% 0.5% 35.1% (12,105) - $33.67 C - 0 0.0% 0.0% 0.0% - - N/A TOTAL 38 10,677,069 21.4% 0.4% 21.8% 144,529 100,000 $36.41 Tysons Class A 52 13,255,289 20.1% 0.8% 20.9% (91,569) 1,555,419 $37.69 B 61 7,622,416 22.4% 0.7% 23.1% 66,699-29.5.0 C 29 2,042,892 19.3% 0.2% 19.5% 9,338 - $24.77 TOTAL 142 22,920,597 20.8% 0.7% 21.5% (15,532) 1,555,419 $31.90 Reston/Herndon Class A 106 17,967,174 14.7% 2.1% 16.9% (130,654) 354,913 $30.37 B 63 5,589,260 14.3% 2.1% 16.4% (42,413) - $25.46 C 15 674,403 15.6% 0.0% 15.6% 45,077 - $18.03 TOTAL 184 24,230,837 14.7% 2.0% 16.7% (127,990) 354,913 $28.49 * Current - the vacancy rate is calculated using the combined total of vacant direct, sublease and new space. cushmanwakefield.com 19

Market Statistics Northern Virginia 1st Quarter 2017 Market Statistics Buildings Total Inventory (SF) New/Relet (%) Sublet (%) Total * (%) Net Absorption Current QTR (SF) Under Construction (SF) Average (FS) Merriield/Route 50 Class A 20 3,616,798 27.1% 1.0% 28.2% (252,361) - $32.17 B 15 1,566,456 16.7% 3.1% 19.9% (17,665) - $25.12 C 20 1,424,940 8.4% 0.0% 8.4% (22,636) - $22.31 TOTAL 55 6,608,194 20.6% 1.3% 21.9% (292,662) - $30.25 Fairfax/Oakton/Vienna Class A 25 4,365,706 16.8% 0.7% 17.5% 17,215 385,000 $28.81 B 47 4,410,647 28.0% 1.6% 29.6% 78,848 - $23.98 C 12 733,114 26.2% 0.0% 26.2% (8,870) - $23.22 TOTAL 84 9,509,467 22.7% 1.1% 23.8% 87,193 385,000 $24.63 Route 28 South Class A 49 6,127,730 16.8% 1.1% 17.8% 37,599 665,000 $27.29 B 27 2,548,192 19.7% 4.9% 24.6% (19,596) - $23.19 C - 0 0.0% 0.0% 0.0% - - N/A TOTAL 76 8,675,922 17.6% 2.2% 19.8% 18,003 665,000 $25.50 Loudoun County Class A 40 3,658,941 12.8% 1.0% 13.8% 14,627 72,000 $25.39 B 18 1,407,654 20.3% 1.4% 21.7% 53,784 - $21.66 C - - - - - - - - TOTAL 58 5,066,595 14.9% 1.1% 16.0% 68,411 72,000 $23.85 Northern Virginia Class A 427 79,710,628 18.4% 1.1% 19.5% (315,093) 4,715,061 $34.85 B 350 39,611,961 24.0% 1.3% 25.3% 91,279 - $3.00 C 143 10,743,181 19.8% 0.3% 20.1% 29,257 - $27.08 TOTAL 920 130,065,770 20.3% 1.1% 21.3% (194,557) 4,715,061 $32.06 * Current - the vacancy rate is calculated using the combined total of vacant direct, sublease and new space. Cushman & Wakefield 20

Northern Virginia Survey of Office Space Under Construction/Under Renovation Alexandria BUILDING ADDRESS OWNER/DEVELOPER RENTAL RATE STATUS 2401 Eisenhower Avenue National Science Foundation HQ DELIVERY DATE RENTABLE BUILDING AREA AVAILABLE SPACE PERCENT PRELEASED MAJOR TENANTS USAA N/A U/C 2Q17 720,000 0 100% National Science Foundation Total 720,000-100% Crystal City BUILDING ADDRESS OWNER/DEVELOPER RENTAL RATE STATUS DELIVERY DATE RENTABLE BUILDING AREA AVAILABLE SPACE 3000 Potomac Avenue National Industries for the Blind N/A U/C 2Q18 100,000 0 100% PERCENT PRELEASED MAJOR TENANTS National Industries for the Blind, Kaiser Permanente Total 100,000-100% Fairfax/Oakton/Vienna BUILDING ADDRESS OWNER/DEVELOPER RENTAL RATE STATUS DELIVERY DATE RENTABLE BUILDING AREA AVAILABLE SPACE 4097 Monument Corner Drive Peterson Companies N/A U/C 3Q17 150,000 32,000 79% 1041 Electric Avenue Navy Federal Credit Union PERCENT PRELEASED MAJOR TENANTS Apple Federal Credit Union, Peterson Companies Navy Federal Credit Union N/A U/C 2Q17 235,000 0 100% Navy Federal Credit Union Total 385,000 32,000 92% Reston/Herndon BUILDING ADDRESS OWNER/DEVELOPER RENTAL RATE STATUS DELIVERY DATE RENTABLE BUILDING AREA AVAILABLE SPACE PERCENT PRELEASED MAJOR TENANTS 1900 Reston Metro Plaza Comstock Partners N/A U/C 2Q17 354,913 354,913 0% N/A Total 354,913 354,913 0% cushmanwakefield.com 21

Northern Virginia Survey of Office Space Under Construction/Under Renovation RB Corridor BUILDING ADDRESS OWNER/DEVELOPER RENTAL RATE STATUS 1201 Wilson Boulevard CEB Tower DELIVERY DATE RENTABLE BUILDING AREA AVAILABLE SPACE PERCENT PRELEASED MAJOR TENANTS Monday Properties N/A U/C 3Q17 521,000 195,000 63% CEB 2311 Wilson Boulevard Carr Properties N/A U/C 3Q17 175,000 75,262 57% Opower, Bean Kinney & Korman, AHRI 1000 North Glebe Road Marymount University N/A U/C 2Q17 166,767 56,631 66% Marymount University Total 862,767 326,893 62% Route 28 South BUILDING ADDRESS OWNER/DEVELOPER RENTAL RATE STATUS DELIVERY DATE RENTABLE BUILDING AREA AVAILABLE SPACE PERCENT PRELEASED MAJOR TENANTS 14757 Conference Center Drive COPT N/A U/C 4Q17 240,000 0 100% Federal Government 13900 Air and Space Museum Parkway Peterson Companies N/A U/C 1Q18 425,000 0 100% Federal Government Total 665,000-100% Tysons Corner BUILDING ADDRESS OWNER/DEVELOPER RENTAL RATE STATUS DELIVERY DATE RENTABLE BUILDING AREA AVAILABLE SPACE PERCENT PRELEASED MAJOR TENANTS Capital One Tower Capital One N/A U/C 3Q18 975,000 0 100% Capital One 8350 Broad Street Meridian Group N/A U/C 1Q19 436,813 352,371 19% Tegna 1640 Boro Place Meridian Group N/A U/C 1Q19 143,606 143,606 0% N/A Total 1,555,419 495,977 68% Northern Virginia Summary RENTABLE BUILDING AREA AVAILABLE SPACE 2017 DELIVERIES 2,322,680 713,806 69% 2018 DELIVERIES 1,075,000 0 100% 2019 DELIVERIES 580,419 495,977 15% 2020 DELIVERIES 0 0 N/A TOTAL CURRENTLY UNDER CONSTRUCTION/RENOVATION 3,978,099 1,209,783. PERCENT PRELEASED Status Operating Expense and Real Estate Tax Base U/C = Under Construction FS = Full Service NN = Plus Electric & Char N/A = No Space Available U/R = Under Renovation N = Plus Electric NT = Plus Taxes NNN = Net of all Operating Expenses and Taxes Cushman & Wakefield 22