Las Vegas Research & Forecast Report Q Las Vegas Economic Review

Las Vegas Research & Forecast Report Q4 2015 Las Vegas Economic Review

Glossary Industrial Definitions Incubator: Multi-tenant buildings without dock-high loading doors that have a parking ratio lower than 3.5/1,000 square feet and bay sizes lower than 3,500 square feet. Light Distribution: Multi- or single-tenant buildings that include dock-high loading doors and have bay sizes of less than 15,000 square feet. Light Industrial: Flex: Warehouse/Distribution: Multi- or single-tenant buildings without dock-high loading doors that have a parking ratio lower than 3.5/1,000 square feet and, in the case of multi-tenant buildings, bay sizes of at least 3,500 square feet. Multi- or single-tenant buildings without dock-high loading doors with parking ratios in excess of 3.5/1,000 square feet. Multi- or single-tenant buildings that include dock-high loading doors and have bay sizes of at least 15,000 square feet. Office Definitions Class A Office: Class B Office: Class C Office: Buildings with steel frame construction, high end exterior finish, distinctive lobbies featuring upgraded finishes, amenities including on-site security, state-of-the-art communications and data infrastructure and covered parking. Class A buildings are usually multi-story. Buildings with steel frame, reinforced concrete or concrete tilt-up construction. Class B buildings contain common bathrooms and hallways, and their lobbies may have granite and hardwood detailing. Class B buildings are often multi-story. Buildings of wood frame construction. Class C buildings are often garden-style and are built around courtyards. Retail Definitions Community Center: Neighborhood Center: Power Center: Strip Center: Retail centers anchored by supermarkets, drug stores and discount department stores. Tenants include offprice retailers selling apparel, home improvements/furnishings, toys, electronics or sporting goods. Retail centers anchored by supermarkets and drug stores. Neighborhood centers are intended for convenience shopping for day-to-day needs of consumers. Retail centers dominated by several large anchors including discount department stores, off-price stores, warehouse clubs or category killers. Power centers generally inline space. Unanchored retail centers that are 20,000 SF in size or larger. Multifamily Definitions Class A Multifamily: Class B/C Multifamily: Buildings constructed in the last 5 years Buildings constructed more than 5 years ago General Definitions Vacant SF: Sublease SF: Net Absorption: Space in a building that is unoccupied and offered for lease by the owner of the company. Space in a building that is offered for sublease by the primary tenant. This space may or may not be occupied. Difference in occupied square footage from one period to another. 2 Las Vegas Research & Forecast Report Q4 2015 Economic Review Colliers International

Table of Contents Economic Review What Comes Next? After years of recession followed by years of tepid recovery, Southern Nevada s economy finally seemed to break out of its shell in 2015. Industrial Review The Year We Have Been Waiting For 2015 was the year we had been waiting for the break-out year when Southern Nevada s industrial market reasserted itself and produced substantial growth. Office Review A Strong Year for Office Despite a fairly weak fourth quarter, Southern Nevada s office market put in a solid 2015, with 1.23 million square feet of net absorption, and nearly 400,000 square feet of new office product completed. Retail Review Retail Back on Track For Southern Nevada s retail market, the normal business cycle reasserted itself over a year ago. 4 8 14 19 Multifamily New Completions Test Market Resiliency According to statistics provided by REIS, multifamily vacancy in Southern Nevada decreased in the third quarter of 2015 (the most recent quarter of available data), extending a three year long streak. Medical Office Getting Better All the Time After two strong quarters to start 2015, the year looked to be off to a good start; combining for 149,036 square feet of net absorption. Hospitality A Strong Finish, and a Strong Foundation While Southern Nevada s hospitality market not only had a record-breaking year in 2015 for visitor volume, but, according to priceline.com, leads the nation in advance bookings for 2016. 25 30 35 Land The Calm Before the Storm The fourth quarter of 2015 was an improvement on the third quarter in terms of sales volume and, to a small extent, the acreage sold, though fewer sales occurred. 40 This report and other research materials may be found on our website at www.colliers.com/lasvegas. This quarterly report is a research document of Colliers International Las Vegas. Questions related to information herein should be directed to the Research Department at +1 702 836 3781. Information contained herein has been obtained from sources deemed reliable and no representation is made as to the accuracy thereof. 2015 Colliers International 3 Las Vegas Research & Forecast Report Q4 2015 Economic Review Colliers International

Research & Forecast Report LAS VEGAS ECONOMIC REVIEW Q4 2015 What Comes Next? > > Southern Nevada economy grew in Q4 > > Taxable sale growth and job growth was strong > > Hospitality and construction sectors are driving economy After years of recession followed by years of tepid recovery, Southern Nevada s economy finally seemed to break out of its shell in 2015. Led by strong growth in taxable sales and employment, the Valley appears to be back in business. Occupancy in commercial real estate is rising, led by industrial but with creditable performance in the professional office and retail markets as well, and this is leading to renewed speculative commercial construction. Now that the recovery has firmly taken hold in Southern Nevada, is the next phase a robust expansion, as took place in 2004-2006, a slow and steady improvement, as has been taking place, or could there be dark clouds on the horizon? Clark County Economic Data Current Year Ago Jobs (1000s) (Oct 2015) 985.8 949.7 Recovery Index (Year -Over-Year) (Year-Over-Year) Visitor Volume YTD (Oct 2015) 35.7 MM 34.7 MM Gaming Revenue YTD (Oct 2015) $7.96 BB $7.92 BB 140.0 Jan 2005 = 100 Taxable Sales YTD (Sept 2015) $28.4 BB $26.5 BB 120.0 100.0 Commercial Occupancy (Q4) 90.7% 88.5% 80.0 Source: The Center for Business & Economic Research, UNLV; Colliers International 60.0 40.0 20.0 0.0 New Home Sales Commercial Occupancy Gaming Revenue Visitor Volume In-Migration Employment Taxable Sales Port Traffic LA Recovery Index Oct 2014 Oct 2015

Unemployment in the Las Vegas-Paradise MSA stood at 6.3 percent as of October 2015, down from 7.1 percent in October 2014. The national unemployment figure was 5.0 percent in October 2015, down from 5.7 percent in October 2014. The national labor force participation rate was also down, from 62.8 percent in October 2014 to the current 62.4 percent. Since October 2014, total employment in Southern Nevada increased by 43,300 jobs, almost double the number of jobs added between October 2013 and October 2014. On a year-over-year basis, the majority of new jobs in October 2015 have been in the leisure and hospitality (+19,700 jobs), construction (+11,000 jobs), professional and business services (+8,700 jobs) and education and health services (+2,700 jobs) sectors. Job expansions were also experienced in the other services (+2,100 jobs), information (+1,000 jobs), government (+600 jobs) and natural resources and mining (+100 jobs) sectors. Manufacturing employment was static, and job losses occurred in trade, transportation and warehousing (-500 jobs) and financial activities (-2,100 jobs). Strong growth in the leisure and hospitality and construction sectors suggests that Southern Nevada s economy is as close to being normal as it is going to get. While the current construction employment of 53,400 jobs lags well behind the 111,300 construction jobs the Valley had in August of 2006, it has expanded quite a bit since the low of 34,800 construction jobs in early 2012. The industrial and multifamily sectors are the key real estate stimulators of new construction in the Valley, but infrastructure is currently creating the most construction jobs in Southern Nevada, and important infrastructure projects are planned to continue for the next year at least. The coming years will also see construction at the Cadence MPC in Henderson and the ResortsWorld resort on the Las Vegas Strip, as well as new industrial, multifamily and retail projects. The construction boom, which has arguably occurred in Southern Nevada since the city s founding, was driven by population growth. Southern Nevada has been one of the fastest growing metropolitan areas in the United States for many years, but population growth has slowed since the Great Recession. Factors for this slowing included a stagnant job market, which is now reversing itself, and millions of Americans with mortgage problems who were unable to sell their homes and move west. According to data provided by the Nevada Department of Motor Vehicles, the average number of out-of-state driver s licenses turned in each month was 5,164 in 2015. This was lower than the average of 5,324 licenses per month turned in in 2014 and the 5,481 per month turned in in 2013. The initial bounce back in growth experienced in 2013 from the lows of 2011 and 2012 appears to have reversed itself. New home sales are equally unimpressive in Southern Nevada over the past three years, and increases in new home prices and multifamily rental rates might be partially to blame. A low-growth Southern Nevada is a much different animal, and business people and landlords will have to adapt and unlearn a few things about the market if they are to succeed here unless population growth increases. Employment Growth (October 2014 - October 2015) Leisure/Hospitality Construction Professional/Business Services Health Care/Social Assistance Other Services Information Government Natural Resources Manufacturing Trade/Transportation/Utilities Education Financial Activities -5:: -1,5:: -2,1:: Employment Change (Oct 2:14 - Oct 2:15) 19,7:: 11,::: 8,7:: 4,2:: 2,1:: 1,::: 6:: 1:: : -5,::: : 5,::: 1:,::: 15,::: 2:,::: 25,::: Southern Nevada Commercial Real Estate Recovery Index 12:.: 11:.: 1::.: 9:.: 8:.: 7:.: 6:.: Jun 1996 Feb 1997 Southern Nevada Commercial Real Estate Recovery Index (Jan 2::5 = 1::) Oct 1997 Jun 1998 Feb 1999 Oct 1999 Jun 2::: Feb 2::1 Oct 2::1 Jun 2::2 Feb 2::3 Oct 2::3 Jun 2::4 Feb 2::5 Oct 2::5 Jun 2::6 Feb 2::7 Oct 2::7 Jun 2::8 Feb 2::9 Oct 2::9 Jun 2:1: Feb 2:11 Oct 2:11 The Old Growth Rate The New Growth Rate Jun 2:12 Feb 2:13 Oct 2:13 Jun 2:14 Feb 2:15 Oct 2:15 If the construction sector finally turned around in 2015, the leisure and hospitality sector enjoyed a sixth year of improvement. We say improvement, because growth may not be the correct word. In fact, room inventory has been shrinking for the past year, as two old properties, the 5 Las Vegas Research & Forecast Report Q4 2015 Economic Review Colliers International

Riviera and Clarion were taken off the market, with the Clarion since demolished and the Riviera slated for demolition in 2016. Visitor volume is growing, with an average of 3.57 million people per month visiting Southern Nevada in 2015 (as of October), compared to 3.52 million people per month in 2014 during the same period. This is the highest visitor volume in Southern Nevada since 2004, when visitor volume last peaked. Gaming revenue, on the other hand, continued to disappoint. Gaming revenue year-to-date as of October 2015 was $7.92 billion, compared to $7.96 billion in the first ten months of 2014. Gaming revenue remains well below the heights it hit in 2007, and does not seem poised to regain those heights in the near future. This shift away from gaming to entertainment is a change for Southern Nevada, and one to which its major operators are responding by offering alternate forms of entertainment. Commercial real estate investment sales volume in 2015 reached $1.12 billion in 171 sales totaling 6.7 million square feet. In 2014, sales volume was $1.36 billion in 280 sales totaling 9.1 million square feet. Commercial real estate investors bought less product in Southern Nevada in 2015 compared to 2014, but they paid nearly as much for it. Industrial investment properties saw a small decrease (negative 1.1 percent) in the sales price per square foot from 2014 to 2015. Likewise, retail centers had negative 2.5 percent growth in sales price per square foot and single-tenant retail investments had negative 10.4 percent growth. The increase in sales price per square foot is due to growth in the office sector, which posted 35.7 percent growth yearover-year. This indicates that real estate values in Southern Nevada are recovering, and that prices are either increasing or holding steady. This, plus modest rate hikes by the Fed, will probably mean that commercial real estate investment activity in 2016 will be lighter than in 2015. Cap rates averaged 7.7 percent in 2015, year-to-date, the same as in 2014. Recovery Index The recovery index, which showed little life in the first half of 2015, finally started growing again in the second half of the year. The index increased for the last five months (June to October), and will probably show an increase in November as well. This suggests that demand for commercial real estate should remain positive in the first quarter of 2016. On a year-over-year basis, the Southern Nevada CRE Recovery Index was a mixed bag in October 2015. Five of the eight measures we track showed growth year-over-year, with the largest growth in taxable sales and employment. Growth was also positive for new home sales, commercial occupancy and visitor volume. Growth was negative for out-of-state drivers licenses turned in to the DMV, gaming revenue and port traffic in Los Angeles. The index is now where it was just as the Great Recession was starting in 2008, and just before the Great Boom began in 2005. This suggests the economy is back to normal, or at least somewhere in the middle of the two extremes. This level of growth should be sustainable, and we believe it will continue through 2016 and 2017. Naturally, if the national economy enters a recession, which is unlikely in the near term, though more possible in the long term, the local economy will feel the effects. 6 Las Vegas Research & Forecast Report Q4 2015 Economic Review Colliers International

Economic Statistics Las Vegas Fourth Quarter 2015 TYPE OCTOBER 2015 SEPTEMBER 2015 OCTOBER 2014 2015 AVERAGE 2014 AVERAGE MONTHLY GROWTH ANNUAL GROWTH 2014 TO 2015 GROWTH (AVERAGE) EMPLOYMENT DATA U.S. Employment 142,654,000 142,383,000 139,840,000 141,733,000 139,023,250 0.2% 2.0% 1.9% U.S. Unemployment Rate 5.0% 5.1% 5.7% 5.3% 6.2% -2.0% -12.3% -13.2% Las Vegas MSA 926,100 915,700 882,800 905,900 874,533 1.1% 4.9% 3.6% Employment Las Vegas MSA 6.3% 6.7% 7.1% 7.0% 7.8% -6.0% -11.3% -10.5% Unemployment Rate Las Vegas MSA 53,400 53,200 42,400 49,200 42,700 0.4% 25.9% 15.2% Construction Employment Las Vegas MSA Hospitality Employment 291,500 291,600 271,800 287,020 271,392 0.0% 7.2% 5.8% HOUSING/CONSTRUCTION DATA New Home Sales 532 686 509 542 496-22.4% 4.5% 9.2% New Home Median Price $316,825 $320,184 $287,588 $309,319 $290,837-1.0% 10.2% 6.4% Existing Home Sales 2,438 2,721 2,328 2,622 2,408-10.4% 4.7% 8.9% Existing Home Median Price $220,000 $220,000 $199,900 $213,182 $197,108 0.0% 10.1% 8.2% Residential Permits 948 569 882 897 812 66.6% 7.5% 10.6% Residential Permit Value $97,229,921 $73,288,433 $122,359,230 $105,453,323 $89,327,349 32.7% -20.5% 18.1% Commercial Permits 33 26 30 27 25 26.9% 10.0% 7.3% Commercial Permit Value $43,514,091 $7,735,995 $14,451,063 $1,926,574 $23,421,645 462.5% 201.1% -91.8% HOSPITALITY DATA Visitor Volume 3,784,056 3,544,505 3,583,142 3,567,201 3,427,209 6.8% 5.6% 4.1% Gaming Revenue $755,960,000 $780,351,000 $787,452,000 $792,410,308 $796,166,718-3.1% -4.0% -0.5% Room Inventory 149,086 149,086 150,256 149,704 150,126 0.0% -0.8% -0.3% Hotel/Motel Occupancy 92.8% 89.9% 89.1% 88.8% 86.8% 3.2% 4.2% 2.4% Passengers 4,104,971 3,779,105 3,857,173 3,793,605 3,570,792 8.6% 6.4% 6.2% (McCarran Int'l Airport) Convention Attendance 533,505 470,624 473,695 491,595 427,944 13.4% 12.6% 14.9% The information contained in this report was provided by sources deemed to be reliable, however, no guarantee is made as to the accuracy or reliability. As new, corrected or updated information is obtained, it is incorporated into both current and historical data, which may invalidate comparison to previously issued reports. 7 Las Vegas Research & Forecast Report Q4 2015 Economic Review Colliers International

Research & Forecast Report LAS VEGAS INDUSTRIAL Q4 2015 The Year We Have Been Waiting For > > Net absorption was stronger in 2015 than in all but three of the past 20 years > > Demand expanded beyond warehouse/distribution to other industrial product in 2015 > > Asking rates increased to $0.64 per square foot on a triple net basis, and should continue to increase INDUSTRIAL Employment +9.1% RESIDENTIAL Permit Value -20.5% TRANSPORTION Taxable Sales +13.5 2015 was the year we had been waiting for the break-out year when Southern Nevada s industrial market reasserted itself and produced substantial growth. While net absorption in the fourth quarter was lower than one year ago, at 575,402 square feet, it rounded out a year in which over 5 million square feet of industrial space was absorbed. A total of 1.9 million square feet of industrial product was completed in 2015, much of it speculative. Industrial vacancy was 5.5 percent at the end of 2015, which we would consider a normalized vacancy for Southern Nevada. Asking rental rates increased to $0.64 per square foot (psf) on a triple net (NNN) basis. Market Indicators Relative to prior period Market Q4 2015 Market Q1 2016* Vacancy Net Absorption Completions Rental Rate *Projected Historical Vacancy Rates and Asking Lease Rates 12.0% $0.68 10.0% $0.65 Summary Statistics Q4 2015 Las Vegas Market Q4-2014 Q3-2015 Q4-2015 Vacancy Rate 8.3% 5.8% 5.5% 8.0% $0.62 Asking Rent (PSF, NNN) $0.56 $0.61 $0.64 6.0% $0.59 Net Absorption (SF) 892,946 1,771,327 575,402 4.0% $0.56 New Completions (SF) 444,520 952,290 173,608 2.0% $0.53 0.0% 4 Q 2013 1 Q 2014 2 Q 2014 3 Q 2014 4 Q 2014 1 Q 2015 2 Q 2015 3 Q 2015 4 Q 2015 $0.50 Overall Asking Rents Per Square Foot Previous Quarter Current Quarter Vacancy Asking Rental Rate Warehouse/Distribution $0.44 $0.54 2015 was an unmitigated success for Southern Nevada s industrial market, and was stronger than we (and we suppose most others) expected Light Distribution $0.50 $0.57 Light Industrial $0.55 $0.64 Incubator $0.68 $0.70 Flex $0.80 $0.86

Southern Nevada s industrial job market improved in October 2015 (the latest month of data available) compared with October 2014, adding 14,000 jobs in the past twelve months, 11,000 of them in the construction sector. Growth in manufacturing jobs, which occurred earlier in the recovery, appears to have halted. The transportation & warehousing sector added 1,600 jobs over the past twelve months, and the wholesale sector added 1,400. Southern Nevada s strength as a service economy and a high-growth community appear again to be driving industrial employment growth. Unemployment in the Las Vegas-Paradise MSA stood at 6.3 percent as of October 2015, down from 7.1 percent in October 2014. Since October 2014, total employment in Southern Nevada has increased by 43,300 jobs. Historical Net Absorption vs. Completions 8,000,000 6,000,000 4,000,000 2,000,000 0-2,000,000 By the end of 2015, Southern Nevada s industrial inventory had expanded by 1.9 million square feet, the majority of it being completed in the second and third quarters. A significant portion of the industrial product completed in 2015, unlike in the previous two years, was speculative construction. Currently, Southern Nevada has 9.3 million square feet of space under construction or planned to begin construction in the next twelve months. Approximately 1,022,000 square feet of this forward supply is in build-to-suit projects, and virtually all of this forward supply space is in the form of warehouse/ distribution projects. -4,000,000 2007 2008 2009 2010 2011 2012 2013 2014 2015 Net Absorption Occupancy vs. Industrial Employment 155,000 150,000 Completions 96.0% 94.0% Positive net absorption in the fourth quarter of 2015 boosted net absorption in Southern Nevada for the year to a very healthy 5.1 million square feet. This is the highest level of net absorption recorded in Southern Nevada since 2006, during the boom that preceded the Great Recession. In fact, net absorption has only been higher in three of the last 20 years. Truly, this is the year the industrial market had been waiting for. This very strong demand for industrial space is responsible for the renaissance of industrial development which the Valley is currently experiencing. 145,000 140,000 135,000 130,000 125,000 4 Q 2013 1 Q 2014 2 Q 2014 Industrial Jobs 3 Q 2014 4 Q 2014 1 Q 2015 2 Q 2015 3 Q 2015 Occupancy Rate 4 Q 2015 92.0% 90.0% 88.0% 86.0% 84.0% Net absorption was positive in 2015 in every submarket in Southern Nevada. The highest net absorption was experienced in the two submarkets with the largest share of warehouse/distribution product, North Las Vegas and Southwest, each of which recorded 2.0 million square feet of net absorption in 2015. The Henderson submarket also had a strong showing, with almost one-half-million square feet of net absorption. In 2015, gross absorption of industrial space was 14.2 million square feet, higher than the 11.9 million square feet of gross absorption recorded in 2014. OCT 2015 OCT 2014 CHANGE Construction 53,400 42,400 + 11,000 Manufacturing 21,300 21,300 0 Transportation & Warehousing 36,800 35,200 + 1,600 Wholesale 22,200 20,800 + 1,400 Source: Nevada Department of Employment, Training and Rehabilitation Industrial vacancy has been on the decline since the first quarter of 2012, dropping from a high of 14.0 percent then to the current vacancy rate of 5.5 percent. In just the past two years, industrial vacancy has effectively been cut in half. 2015 s 5.5 percent vacancy is the lowest industrial vacancy recorded since the third quarter of 2007, when vacancy was 4.7 percent (and heading up). Southern Nevada has not reached the heights it experienced in 2006, when vacancy hit a low of 2.8 percent, but it is quite strong, and the total amount of occupied industrial space is now 9.3 million square feet 9 Las Vegas Research & Forecast Report Q4 2015 Economic Review Colliers International

greater than it was in the first quarter of 2008, when industrial occupancy peaked at 104 million square feet before the onset of the Great Recession. The industries most active in occupying industrial space over the past twelve months were involved in business and personal services, manufacturing, retail and wholesale. Local companies took about 43 percent of the leased square footage we tracked over this period. Companies headquartered in the Southwest U.S. took 18.5, while 11.8 percent was taken by companies from the Great Plains, including Texas, and 7.6 percent by companies from the Mid-Atlantic region. Interest in Southern Nevada real estate by companies from Texas has been on the rise over the past year. The weighted average asking lease rate for industrial space increased to $0.64 psf NNN at the end of 2015. This was $0.08 higher than at the end of 2014. If adjusted for inflation, the weighted average asking lease rate would be $0.47 psf NNN, a $0.04 increase from one year ago. The current asking rate, adjusted for inflation, is $0.04 lower than it was during the last economic recovery in 2004. Units leased in the third quarter of 2015 had effective lease rates that averaged 107.9 percent of asking rates. This indicates that more increases in asking rental rates will occur in 2016. As rental rates climb, new industrial developments will become more viable, especially of nonwarehouse/distribution product. In 2015, industrial investment sales volume was $204.2 million in 39 sales that totaled 2.306 million square feet. The average sales price in 2015 was $88.55 psf, and the average cap rate was 7.1 percent, a slight compression from 2014 s average cap rate of 7.3 percent. Southern Nevada s industrial market had just over 1 million square feet of product available for sale as investments, with an average asking price of $135.40 psf, and an average cap rate of 6.4 percent, a notable compression of the asking cap rate of 7.1 percent recorded in 2014. Warehouse/distribution space knocked it out of the park in 2015, chocking up 2.4 million square feet of net absorption while adding 1.8 million square feet to total inventory. Gross absorption for warehouse/distribution space totaled 6.0 million square feet in 2015, the highest annual total we have recorded in the seven years we have calculated gross absorption. Increased commerce, both locally and regionally, and pent-up demand from the slow, uneven economic recovery experienced over the past decade is likely the driver. The question of the hour, with 1.5 million square feet of warehouse/ distribution product under construction and more than 7 million square feet on the drawing boards, is will this level of demand persist through 2016? The first half of 2016, when the space currently under construction enters the market, will be the test. Pre-leasing on this space is fairly low, and if this new space does not perform as well as 1 Using the Consumer Price Index, All Urban Consumers, West Region, Class A Cities, 1982-1984 = 100 Industrial Development Pipeline Project Type Submarket Size Pre-Leasing Completion Under Construction 1,517,000 SF Lone Mountain Corporate Park 1 Warehouse/Distribution North Las Vegas 447,000 SF 0% Q1-2016 Jones Corporate Park Warehouse/Distribution Southwest 416,000 SF 20% Q2-2016 LogistiCenter Cheyenne B Warehouse/Distribution North Las Vegas 382,000 SF 100% Q1-2016 Sunpoint Business Center Warehouse/Distribution North Las Vegas 312,000 SF 0% Q4-2016 Ainsworth BTS Warehouse/Distribution Southwest 272,000 SF BTS Q1-2016 Black Mountain Distribution Center Warehouse/Distribution Henderson 233,000 SF 0% Q4-2016 Cheyenne Distribution Center Warehouse/Distribution North Las Vegas 164,000 SF 100% Q3-2016 Planned Construction 7,778,000 SF Northgate Development 1-2 Warehouse/Distribution North Las Vegas 806,000 SF 0% 2016 Switch SuperNAP 10 Warehouse/Distribution Southwest 500,000 SF BTS 2016 South 15 Airport Center Warehouse/Distribution Airport 479,000 SF 0% 2016 Henderson Freeway Crossings Warehouse/Distribution Henderson 453,000 SF 0% 2016 Blue Diamond Business Center 6 Warehouse/Distribution Southwest 430,000 SF 0% 2016 ProLogis North 15 Freeway Warehouse/Distribution North Las Vegas 411,000 SF 0% 2016 UFC BTS Industrial Southwest 250,000 SF BTS 2016 Lone Mountain Corporate Park 2 Warehouse/Distribution North Las Vegas 244,000 SF 0% 2016 Henderson Commerce Center IV Warehouse/Distribution Henderson 240,000 SF 0% 2016 ProLogis Beltway Distribution Center Warehouse/Distribution Southwest 211,000 SF 0% 2016 Blue Diamond Business Center 3 Warehouse/Distribution Southwest 172,000 SF 84% 2016 Parc Post Warehouse/Distribution Southwest 165,000 SF 0% 2016 10 Las Vegas Research & Forecast Report Q4 2015 Economic Review Colliers International

product completed in 2015, we will probably see some portion of the 7 million square feet in development put on hold. If this space, on the other hand, leases quickly, it s off to the races in 2016. Warehouse/ distribution vacancy decreased to 3.3 percent in 2015, and asking rental rates increased by $0.10 to $0.54 psf NNN. Light distribution space did not fare as well as warehouse/ distribution space in 2015, but it still was no slouch. In 2015, almost 1.0 million square feet of light distribution space was absorbed, with no new completions recorded. This indicates a very healthy market. Vacancy is now 6.9 percent, and asking rates for light distribution space increased in 2015 by $0.07 psf, to $0.57 psf NNN. Despite strong demand and a healthy vacancy rate, no new light distribution space is under construction or planned for Southern Nevada in 2016. With over 1.0 million square feet of net absorption for the light industrial market in Southern Nevada, and only 99,654 square feet of new construction, it is a toss-up on whether the next surge in speculative construction in the Valley will be of light industrial or light distribution space (or perhaps both). Asking rental rates for light industrial space increased by $0.09 psf to $0.64 psf NNN over the past year, and effective rates were 102.6 percent of asking rates in 2015. Whether these rates are high enough to stimulate new construction depends on the circumstances of each potential project, but with vacancy dipping to 5.7 percent, light industrial construction cannot be far away. Incubator space and flex space continued to improve at a slow pace in 2015. They combined for 635,405 square feet of net absorption in 2015, and like light distribution space, saw no new projects completed. Unlike with light distribution space, this is not surprising, given that incubator space is currently 8.8 percent vacant in Southern Nevada, and flex space is 13.3 percent vacant. Asking rental rates saw a modest $0.02 psf increase for incubator projects to $0.70 psf NNN, and a more impressive $0.06 psf increase for flex properties, to $0.86 psf NNN. 2015 was an unmitigated success for Southern Nevada s industrial market, and was stronger than we (and we suppose most others) expected. Demand for industrial space, particularly warehouse/ distribution space, is stronger now than during the 2002-2003 recovery, and it is nearly as strong as during the boom years of 2005 and 2006. It is possible that demand for warehouse/distribution space will be somewhat lighter in 2016 than 2015, but the strengthening of demand for other types of industrial real estate, particularly light distribution and light industrial space, makes us hopeful that demand for industrial space in 2016 will actually increase. Current demand appears to be driven by two main factors. The first is a resurgence in the local construction market. The construction industry has added approximately 11,000 new jobs over the past twelve months, driven to a small degree by new industrial and multifamily construction, and to a greater degree by projects on the Las Vegas Strip and infrastructure development in Clark County. We think these factors will continue into 2016, although perhaps on a smaller scale. The other stimulator of demand is commerce, locally and regionally, driving demand for warehouse/distribution space. The success of the industrial market in 2016 may hinge more on commerce than construction. If local and regional commerce continues to grow in 2016, Southern Nevada s industrial market should continue to grow along with it. We think it is likely that Southern Nevada s industrial market will see industrial inventory expand by approximately 3.3 million square feet in 2016, and occupied industrial space by approximately 4.0 million square feet. This will send vacancy rates down to approximately 4.8 percent. Asking rental rates will respond accordingly, increasing to approximately $0.69 psf NNN. Investment Sales 2011 2012 2013 2014 2015 No. Sales 69 77 58 82 39 Square Feet Sold 3,717,000 2,488,000 5,697,000 3,063,000 2,306,000 Sales Volume $239.5 MM $153.4 MM $352.9 MM $272.7 MM $204.2 MM Average Price/SF $64.43 $61.11 $61.94 $89.03 $88.55 Average Cap Rate* 8.3% 8.3% 7.9% 7.3% 7.1% Average Sale Size (SF) 54,000 32,000 98,000 37,000 59,000 *Cap rate on industrial properties available for sale as investments 11 Las Vegas Research & Forecast Report Q4 2015 Economic Review Colliers International

NORTHWEST 95 215 NORTH LAS VEGAS 15 Significant Industrial Sale Activity Losee Road 10,000 SF - $950,000 $96.00/SF October 2015 Light Industrial WEST CENTRAL EAST LAS VEGAS Bankwest Business Park 25,000 SF - $4,000,000 $159.00/SF October 2015 Incubator 95 VFM Manufacturing Facility 92,000 SF - $10,500,000 $114.00/SF November 2015 Flex SOUTHWEST 215 AIRPORT HENDERSON Annie Oakley North 23,000 SF - $2,800,000 $120.00/SF October 2015 Warehouse/Distribution Saddleback Gibson 10,000 SF - $1,000,000 $100.00/SF October 2015 Flex Lease Activity Property Name Lease Date Lease Term Size Lease Rate Type Golden Triangle Nov 2015 126 months 127,000 SF $0.44 NNN Warehouse/Distribution Oquendo Industrial Park Nov 2015 63 months 37,000 SF $0.62 NNN Light Industrial Arrowhead Commerce Center Oct 2015 60 months 20,000 SF $0.59 NNN Light Distribution Russell Commerce Center Nov 2015 89 months 8,000 SF $0.96 NNN Incubator Cheyenne Technology Center Nov 2015 62 months 7,000 SF $0.57 NNN Flex 12 Las Vegas Research & Forecast Report Q4 2015 Economic Review Colliers International

Market Comparisons - Las Vegas Industrial Market TYPE TOTAL INVENTORY SF DIRECT VACANT SF DIRECT VACANCY RATE SUBLEASE VACANCY SF TOTAL VACANT SF VACANCY RATE CURRENT QUARTER VACANCY RATE PRIOR QUARTER NET ABSORPTION CURRENT QTR SF NET ABSORPTION YTD SF COMPLETIONS CURRENT QTR SF COMPLETIONS YTD SF UNDER CONSTRUCTION SF PLANNED CONSTRUCTION SF WEIGHTED AVG ASKING RENTAL RATE AIRPORT SUBMARKET WH 5,870,661 631,092 10.7% - 631,092 10.7% 8.9% (155,079) (124,174) - 193,000-479,440 $0.62 LD 3,225,564 289,721 9.0% - 289,721 9.0% 9.6% 20,638 102,488 - - - - $0.67 LI 2,968,086 294,656 9.9% 7,632 302,288 10.2% 11.4% 336 64,730 - - - - $0.81 INC 1,523,046 236,780 15.5% 3,297 240,077 15.8% 19.7% 63,689 70,168 - - - - $0.81 FLX 1,378,931 246,780 17.9% 1,500 248,280 18.0% 18.7% (3,884) 30,971 - - - - $0.98 Total 14,966,288 1,699,029 11.4% 12,429 1,711,458 11.4% 11.6% (74,300) 144,183-193,000-479,440 $0.74 EAST LAS VEGAS SUBMARKET WH 1,109,306 54,912 5.0% - 54,912 5.0% 5.0% - (37,112) - - - - $0.39 LD 532,197 6,500 1.2% - 6,500 1.2% 3.5% 12,122 50,166 - - - - $0.25 LI 1,798,241 54,890 3.1% - 54,890 3.1% 1.9% (20,292) 85,234 - - - - $0.32 INC 281,755 35,165 12.5% - 35,165 12.5% 13.4% 2,660 18,667 - - - - $0.49 FLX 233,692 15,177 6.5% - 15,177 6.5% 36.4% 69,816 77,187 - - - - $0.55 Total 3,955,191 166,644 4.2% - 166,644 4.2% 5.8% 64,306 194,142 - - - - $0.40 HENDERSON SUBMARKET WH 6,678,473 52,500 0.8% 40,170 92,670 1.4% 3.3% 14,028 12,814 - - 232,826 693,110 $0.49 LD 1,634,138 84,619 5.2% - 84,619 5.2% 7.5% 20,283 128,006 - - - - $0.56 LI 3,640,652 199,540 5.5% - 199,540 5.5% 6.7% 44,640 185,112-28,000 - - $0.64 INC 476,278 32,931 6.9% - 32,931 6.9% 6.4% (2,301) 30,785 - - - - $0.55 FLX 1,394,446 148,198 10.6% 20,040 168,238 12.1% 13.9% 25,818 111,035 - - - - $0.83 Total 13,823,987 517,788 3.7% 60,210 577,998 4.2% 5.9% 102,468 467,752-28,000 232,826 693,110 $0.66 NORTH LAS VEGAS SUBMARKET WH 20,676,250 297,059 1.4% 0 297,059 1.4% 2.4% 259,026 1,344,054 153,456 617,659 1,303,975 1,460,440 $0.46 LD 5,053,540 451,207 8.9% 14,315 465,522 9.2% 12.0% 125,230 256,120 - - - - $0.43 LI 9,014,503 473,274 5.3% 3,310 476,584 5.3% 5.9% 78,035 326,686 20,152 20,152 - - $0.56 INC 717,495 69,694 9.7% 0 69,694 9.7% 12.1% 16,984 40,057 - - - - $0.63 FLX 812,778 120,214 14.8% 0 120,214 14.8% 18.2% 27,603 70,006 - - - - $0.67 Total 36,274,566 1,411,448 3.9% 17,625 1,429,073 3.9% 5.2% 506,878 2,036,923 173,608 637,811 1,303,975 1,460,440 $0.51 NORTHWEST SUBMARKET WH 224,906-0.0% - - 0.0% 0.0% - 19,000 - - - - $- LD 50,000 3,800 7.6% - 3,800 7.6% 7.6% - - - - - - $0.65 LI 341,430 34,425 10.1% - 34,425 10.1% 2.6% (25,555) 24,718 - - - - $0.56 INC 99,427 2,013 2.0% - 2,013 2.0% 2.1% 27 5,103 - - - - $0.80 FLX 740,230 129,118 17.4% - 129,118 17.4% 21.3% 28,813 9,589 - - - - $0.92 Total 1,455,993 169,356 11.6% - 169,356 11.6% 11.9% 3,285 58,410 - - - - $0.84 SOUTHWEST SUBMARKET WH 14,494,646 651,662 4.5% - 651,662 4.5% 4.0% (96,403) 1,225,203-1,004,288 687,525 1,728,672 $0.53 LD 7,199,416 366,452 5.1% - 366,452 5.1% 5.2% 3,361 393,639 - - - - $0.73 LI 10,417,348 618,694 5.9% 20,040 638,734 6.1% 6.3% 15,273 199,883-51,502 - - $0.64 INC 2,372,501 141,018 5.9% - 141,018 5.9% 7.6% 38,483 60,266 - - - - $0.68 FLX 1,684,854 169,086 10.0% - 169,086 10.0% 8.9% (23,722) 83,277 - - - - $0.84 Total 36,168,765 1,946,912 5.4% 20,040 1,966,952 5.4% 5.4% (63,008) 1,962,268-1,055,790 687,525 1,728,672 $0.64 WEST CENTRAL SUBMARKET WH 2,255,565 17,283 0.8% - 17,283 0.8% 0.8% - 2,717 - - - - $0.33 LD 949,515 87,457 9.2% - 87,457 9.2% 7.3% (18,268) 3,925 - - - - $0.38 LI 7,818,660 388,527 5.0% - 388,527 5.0% 5.5% 43,784 184,073 - - - - $0.67 INC 2,550,564 189,777 7.4% - 189,777 7.4% 7.7% 7,750 38,412 - - - - $0.68 FLX 161,527 23,479 14.5% - 23,479 14.5% 16.1% 2,507 (10,118) - - - - $0.82 Total 13,735,831 706,523 5.1% - 706,523 5.1% 5.4% 35,773 219,009 - - - - $0.63 MARKET TOTAL WH 51,309,807 1,704,508 3.3% 40,170 1,744,678 3.4% 3.7% 21,572 2,442,502 153,456 1,814,947 2,224,326 4,361,662 $0.54 LD 18,644,370 1,289,756 6.9% 14,315 1,304,071 7.0% 8.0% 163,366 934,344 - - - - $0.57 LI 35,998,920 2,064,006 5.7% 30,982 2,094,988 5.8% 6.2% 136,221 1,070,436 20,152 99,654 - - $0.64 INC 8,021,066 707,378 8.8% 3,297 710,675 8.9% 10.4% 127,292 263,458 - - - - $0.70 FLX 6,406,458 852,052 13.3% 21,540 873,592 13.6% 15.9% 126,951 371,947 - - - - $0.86 Total 120,380,621 6,617,700 5.5% 110,304 6,728,004 5.6% 6.2% 575,402 5,082,687 173,608 1,914,601 2,224,326 4,361,662 $0.64 QUARTERLY COMPARISON AND TOTALS Q4-15 120,380,621 6,617,700 5.5% 110,304 6,728,004 5.6% 6.2% 575,402 5,082,687 173,608 1,914,601 2,224,326 4,361,662 $0.64 Q3-15 120,207,013 7,019,494 5.8% 467,329 7,486,823 6.2% 6.9% 1,771,327 4,507,285 952,290 1,740,993 1,689,817 6,390,005 $0.61 Q2-15 119,254,723 7,838,531 6.6% 406,957 8,245,488 6.9% 7.8% 1,863,470 2,735,958 788,703 788,703 1,731,785 5,453,451 $0.57 Q1-15 118,466,020 8,913,298 7.5% 294,896 9,208,194 7.8% 8.5% 872,488 872,488 - - 1,633,705 6,665,344 $0.57 Q4-14 118,466,020 9,785,786 8.3% 303,740 10,089,526 8.5% 9.0% 892,946 4,006,589 444,520 1,095,400 862,161 3,071,639 $0.56 Q3-14 118,021,500 10,234,212 8.7% 364,977 10,599,189 9.0% 9.7% 868,758 3,113,643 14,248 650,880 689,022 964,759 $0.56 Q2-14 118,007,252 11,088,722 9.4% 332,362 11,421,084 9.7% 11.0% 1,498,079 2,244,885 219,490 636,632 244,502 963,159 $0.53 WH = Warehouse LD = Light Distribution LI = Light Industrial INC = Incubator FLX = Flex 13 Las Vegas Research & Forecast Report Q4 2015 Economic Review Colliers International

Research & Forecast Report LAS VEGAS OFFICE Q4 2015 A Strong Year for Office > > The office market absorbed more than 1 million square feet in 2015; a healthy performance > > Technological innovation and conservative attitudes towards expansion will remain as headwinds in 2016 Office Employment Office SF/Job +0.0% Sublease Vacancy +11.7 > > Asking rates, which had been flat, are now rising in response to increased demand +1.9% Q4 Despite a fairly weak fourth quarter, Southern Nevada s office market put in a solid 2015, with 1.23 million square feet of net absorption, and nearly 400,000 square feet of new office product completed. Office vacancy stood at 17.8 percent at the end of 2015, down from 2014 s 19.9 percent. Asking rates increased by $0.07 over the course of 2015, ending the year at $1.97 per square foot (psf) on a Full Service Gross (FSG) basis. Southern Nevada s office job market improved in October 2015 (the latest month of data available) compared with October 2014, adding approximately 10,800 jobs in the past twelve months, with the largest contribution coming from the professional/business services sector, and with the financial activities sector dropping 2,100 jobs. Unemployment in the Las Vegas-Paradise MSA stood at 6.3 percent as of October 2015, down from 7.1 percent in October 2014. Since October 2014, total employment in Southern Nevada has increased by 43,300 jobs. Historical Vacancy Rates and Asking Lease Rates Market Indicators Relative to prior period Market Q4 2015 Market Q1 2016* VACANCY NET ABSORPTION COMPLETIONS RENTAL RATE *Projected Summary Statistics Q4 2015 Las Vegas Market Q4-14 Q3-15 Q4-15 Vacancy Rate 19.9% 17.8% 17.8% Asking Rent (PSF, FSG) $1.90 $1.94 $1.97 21.0% $2.10 Net Absorption (SF) -171,446 359,877 98,619 20.0% $2.05 New Completions (SF) 268,420 46,650 123,617 19.0% 18.0% $2.00 $1.95 Overall Asking Rents Per Square Foot Previous Quarter Current Quarter 17.0% $1.90 Class A $2.63 $2.65 16.0% $1.85 Class B $1.96 $1.96 15.0% 4 Q 2013 1 Q 2014 2 Q 2014 3 Q 2014 4 Q 2014 1 Q 2015 2 Q 2015 3 Q 2015 4 Q 2015 $1.80 Class C $1.62 $1.64 Vacancy Asking Rental Rate We think 2016 will proceed much as 2015 did, with minor setbacks and overall positive performance.

While no new buildings were constructed in the fourth quarter of 2015, two existing buildings at Town Square were offered for the first time for office use, expanding inventory by 123,617 square feet in the Airport submarket. For 2015 as a whole, office inventory expanded by almost 400,000 square feet. Another 197,000 square feet of office space is under construction in the Federal Justice Tower in Downtown and Tivoli Village s expansion in the Northwest submarket, both of which have experienced a very slow rate of construction. The Valley has 485,140 square feet of office planned to begin construction over the next twelve months. Aside from the aforementioned Federal Justice Tower, all of the office product currently under construction or planned is speculative. Historical Net Absorption vs. Completions 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0-1,000,000 Southern Nevada s office market had 1.23 million square feet of net absorption in 2015. This represents a healthy expansion of the market, though the market remains one in which vacancy is very high. 2015 s net absorption was the highest recorded for the office market since 2007, and it is on par with net absorption during the office expansion of the early 2000 s. For 2015 as a whole, net absorption was highest in the Northwest submarket (363,868 square feet), followed by Airport (288,856 square feet), Henderson (239,781 square feet) and Southwest (208,451 square feet). These submarkets are all located along the southern portion of the I-215 Beltway, suggesting a shift in suburban office demand towards the Beltway. Negative net absorption was experienced in Downtown, which gave back 93,985 square feet of occupied office space in 2015, and North Las Vegas, which experienced negative 31,322 square feet of net absorption in 2015. Demand for office space came primarily from professional and business services (195,218 square feet) and financial activity, especially mortgage and title companies (185,860 square feet) in 2015. Strong demand also came from health services companies (63,855 square feet) and engineering and management companies (61,022 square feet). Mortgage, title and engineering companies have probably been stimulated by the recent expansion of the Valley s construction industry. The trend of taking less space per office employee remains a headwind to office market growth, but the reticence by businesses to expand appears to be decreasing. Positive net absorption drove the office vacancy rate down to 17.8 percent at the end of 2015. Weak net absorption in the face of expanded inventory resulted in no decrease in vacancy in the fourth quarter compared to the third quarter. Current vacancy is 2.1 percentage points lower than one year ago. Office vacancy remains high, but is moving in the right direction. At recent rates of net absorption, the office market could stabilize at 10.0 percent vacancy in approximately 4.1 years. -2,000,000 2007 2008 2009 2010 2011 2012 2013 2014 2015 Absorption YTD Occupancy vs. Office Employment 120,000 118,000 116,000 114,000 112,000 110,000 108,000 106,000 104,000 102,000 100,000 4 Q 2013 1 Q 2014 2 Q 2014 Office Jobs 3 Q 2014 4 Q 2014 1 Q 2015 Completions YTD 2 Q 2015 3 Q 2015 Occupancy Rate OCT 2015 OCT 2014 CHANGE Information 10,900 9,900 + 1,000 Financial Activities 42,300 44,400-2,100 Professional & Business Services 126,800 118,100 + 8,700 Health Care 59,000 55,800 + 3,200 4 Q 2015 83.0% 82.0% 81.0% 80.0% 79.0% 78.0% 77.0% 76.0% 75.0% 74.0% 73.0% Source: Nevada Department of Employment, Training and Rehabilitation Office vacancy increased in four of the Valley s eight submarkets in the fourth quarter of 2015, with the Airport submarket experiencing the largest increase (1.6 percentage points), followed by Henderson, Downtown and West Central. The East Las Vegas, Northwest, North Las Vegas and Southwest submarkets experienced a decrease in vacancy in the fourth quarter. The Valley s lowest vacancy rate remains in Downtown, at 12.5 percent and rising, while East Las Vegas, the central business district of Southern Nevada s office market, had the Valley s 15 Las Vegas Research & Forecast Report Q4 2015 Economic Review Colliers International

highest vacancy rate, at 24.4 percent. Over the next few years, East Las Vegas should see the completion of a major expansion and renewal of the Las Vegas Convention Center, the completion of the nearby World Resorts property on the Strip and the potential construction of a new stadium near UNLV. This Midtown renaissance should stimulate demand for office space in the East Las Vegas submarket. Vacancy in Class A office stood at 23.9 percent at the end of 2015, due in part to the vacation of space by the Gordon & Silver law firm and the addition of vacant Class A office space at Town Square to the inventory. Class A vacancy was still down from 2014 s 26.2 percent. Year-overyear, class B product saw vacancy decrease by 1.3 percentage points to 17.6 percent, while vacancy in Class C office decreased by 2.9 percentage points to 16.0 percent. The weighted average asking rental rate for office space in Southern Nevada increased to $1.97 per square foot (psf) on a full service gross (FSG) basis at the end of 2015, a $0.07 psf increase from 2014. Asking lease rates had lingered around $1.88 for the past three years, but improved demand for office space is now sending them higher. The Northwest traditionally had the Valley s highest office asking rates, but that designation has now moved to the Southwest submarket, at $2.18 psf FSG. The Northwest s $2.07 psf FSG now places it in fourth place, after the Airport and Downtown submarkets, which ask an average of $2.08 psf FSG. Henderson is not far behind at $2.05 psf FSG. The Valley s lowest average asking rate is in the West Central submarket, at $1.61 psf FSG. Office space available for sublease took a significant jump in the first quarter of 2014 due to Citibank s call center operations center in the Northwest being put on the market. This brought available sublease space to 427,367 square feet from 2013 s 186,390 square feet. At the end of 2015, available sublease space has increased further, to 520,969 square feet. While this increase in available sublease space is gradual, it is worth monitoring, as increases in sublease space can point to future increases in directly vacant space. The office investment sales volume in 2015 was $303.1 million in 61 sales that totaled 1,750,000 square feet. These sales had an average sales price of $173.18 psf, a sharp increase from 2014 s average sales price of $118.32 psf. The average cap rate in 2015 was 7.5 percent, a compression of the average cap rate of 7.7 percent in 2014. Overall, it was a weak year for investment sales, though improved demand and higher lease rates may change that in 2016. There is currently 1.6 million square feet of office space available for sale as investments, with an average asking price of $117.67 psf and an average asking cap rate of 7.8 percent. While Southern Nevada s office market would love to see a break out year comparable to the one the industrial market recorded in 2015, over 1 million square feet of net absorption and a decreasing vacancy rate, despite many headwinds, is nothing to complain about. The office market will continue to be challenged in 2016 with more conservative Continued on Page 18 Investment Sales Activity 2011 2012 2013 2014 2015 No. Sales 59 87 90 71 61 Square Footage 2,484,000 3,929,000 3,512,000 2,505,000 1,750,000 Sales Volume $182.4 MM $261.0 MM $571.9 MM $296.4 MM $303.1 MM Average Price/SF $73.42 $89.11 $162.83 $118.32 $173.18 Average Cap Rate* 9.7% 8.2% 7.6% 7.7% 7.5% Average Sale Size (SF) 42,000 34,000 39,000 35,000 29,000 *Cap rate on office properties available for sale as investments Office Development Pipeline Project Type Submarket Size (SF) Status Completion Build-To-Suit 129,000 Federal Justice Tower Class A Downtown 129,000 UC 2016 Speculative The Grid Class A Downtown 125,000 PC 2017 Centennial Hills Center Class B Northwest 124,000 PC 2017 The Square Class C Southwest 80,000 PC 2016 Tivoli Village Class A Northwest 68,000 UC 2016 University Gateway Class C East Las Vegas 45,000 PC 2016 Seven Hills Plaza D Class B Henderson 42,000 PC 2016 Chronicle at Cadence Class C Henderson 30,000 PC 2016 Stone Creek Professional Plaza Class C Southwest 20,000 PC 2016 Cimarron/Rafael Rivera Class B Southwest 19,000 PC 2016 Speculative Total 553,000 16 Las Vegas Research & Forecast Report Q4 2015 Economic Review Colliers International

215 NORTH LAS VEGAS Significant Office Sale Activity Origin Business Park 95 23,000 SF - $2,760,000 $120.00/SF October 2015 NORTHWEST 15 Class B Fort Apache Commons SUMMERLIN WEST CENTRAL DOWN TOWN 95 EAST LAS VEGAS 54,000 SF - $18,400,000 $343.00/SF October 2015 Class B 201 Plaza 24,800 SF - $2,650,000 $107.00/SF November 2015 Class B 215 AIRPORT Westcliff Tower 82,000 SF - $18,250,000 $222.00/SF SOUTHWEST HENDERSON November 2015 Class B Red Rock Business Center 74,000 SF - $12,200,000 $165.00/SF October 2015 Class B Lease Activity Property Name Lease Date Lease Term Size Lease Rate Type Eastgate Road Nov 2015 24 months 13,100 SF $2.47 FSG Class C Sandhill Road Oct 2015 70 months 12,500 SF $0.67 NNN Class C Cheyenne Corporate Center Oct 2015 65 months 7,200 SF $1.59 MG Class B Chronicle at Cadence Oct 2015 65 months 5,500 SF $1.79 NNN Class C Origin Business Park Oct 2015 24 months 3,700 SF $1.19 MG Class C 17 Las Vegas Research & Forecast Report Q4 2015 Economic Review Colliers International

Market Comparisons - Las Vegas Office Market CLASS TOTAL INVENTORY SF DIRECT VACANT SF DIRECT VACANCY RATE SUBLEASE VACANT SF VACANCY RATE TOTAL VACANT CURRENT SF QUARTER VACANCY RATE PRIOR QUARTER NET ABSORPTION CURRENT QTR SF NET ABSORPTION YTD SF COMPLETIONS CURRENT QTR SF COMPLETIONS YTD SF UNDER CONSTRUCTION SF PLANNED CONSTRUCTION SF WEIGHTED AVG ASKING RENTAL RATE AIRPORT SUBMARKET A 729,174 237,122 32.5% - 237,122 32.5% 19.7% 5,723 76,017 123,617 123,617 - - $2.79 B 2,400,206 274,862 11.5% 32,753 307,615 12.8% 12.5% (994) 54,165 - - - - $2.08 C 3,186,214 497,653 15.6% 17,184 514,837 16.2% 16.1% (2,105) 158,674-23,946 - - $1.74 Total 6,315,594 1,009,637 16.0% 49,937 1,059,574 16.8% 15.1% 2,624 288,856 123,617 147,563 - - $2.08 DOWNTOWN SUBMARKET A 1,103,341 215,832 19.6% 13,706 229,538 20.8% 21.8% 10,872 (74,787) - - 129,000 125,000 $2.55 B 2,429,559 244,055 10.0% - 244,055 10.0% 8.9% (27,455) (3,249) - - - - $2.04 C 1,497,571 169,086 11.3% 3,400 172,486 11.5% 10.9% (6,046) (15,949) - - - - $1.55 Total 5,030,471 628,973 12.5% 17,106 646,079 12.8% 12.3% (22,629) (93,985) - - 129,000 125,000 $2.08 EAST LAS VEGAS SUBMARKET A 1,353,083 328,339 24.3% - 328,339 24.3% 26.1% 20,930 (5,485) - - - - $2.99 B 1,542,404 480,068 31.1% - 480,068 31.1% 29.8% (21,006) 83,827 - - - - $1.35 C 2,629,026 538,090 20.5% 700 538,790 20.5% 23.1% 67,902 95,824 - - - 45,000 $1.31 Total 5,524,513 1,346,497 24.4% 700 1,347,197 24.4% 25.7% 67,826 174,166 - - - 45,000 $1.73 HENDERSON SUBMARKET A 583,905 165,881 28.4% - 165,881 28.4% 29.6% 7,155 118,335 - - - - $2.62 B 2,564,670 421,425 16.4% 5,000 426,425 16.6% 15.5% -28,637 35,991 - - - 42,000 $2.12 C 2,213,139 381,968 17.3% 6,566 388,534 17.6% 17.3% -10,619 85,455 - - - 30,000 $1.73 Total 5,361,714 969,274 18.1% 11,566 980,840 18.3% 17.8% (32,101) 239,781 - - - 72,000 $2.05 NORTH LAS VEGAS SUBMARKET A - - n/a - - n/a n/a - - - - - - $- B 245,696 97,650 39.7% 25,931 123,581 50.3% 43.9% 1,249 (31,010) - - - - $1.91 C 480,831 67,623 14.1% - 67,623 14.1% 14.2% 643 (312) - - - - $1.55 Total 726,527 165,273 22.7% 25,931 191,204 26.3% 24.2% 1,892 (31,322) - - - - $1.76 NORTHWEST SUBMARKET A 1,825,415 453,905 24.9% 20,803 474,708 26.0% 25.1% 3,893 78,891 - - 68,000 - $2.38 B 3,537,755 524,444 14.8% - 524,444 14.8% 15.9% 32,226 156,354 - - - 87,000 $2.05 C 3,341,658 443,868 13.3% 6,824 450,692 13.5% 14.0% 18,399 128,623-4,994-37,100 $1.79 Total 8,704,828 1,422,217 16.3% 27,627 1,449,844 16.7% 17.1% 54,518 363,868-4,994 68,000 124,100 $2.07 SOUTHWEST SUBMARKET A 597,112 90,743 15.2% - 90,743 15.2% 11.5% (21,782) 200,511-200,000 - - $2.71 B 2,852,529 598,625 21.0% 53,420 652,045 22.9% 23.9% 46,794 1,749-46,650-19,000 $2.42 C 3,487,718 561,244 16.1% 3,137 564,381 16.2% 16.4% 8,487 6,191 - - - 100,040 $1.84 Total 6,937,359 1,250,612 18.0% 56,557 1,307,169 18.8% 19.1% 33,499 208,451-246,650-119,040 $2.18 WEST CENTRAL SUBMARKET A 157,624 25,161 16.0% 5,236 30,397 19.3% 19.3% - (9,599) - - - - $2.46 B 1,925,956 441,936 22.9% 3,016 444,952 23.1% 22.6% (10,421) (41,086) - - - - $1.66 C 3,016,775 522,735 17.3% - 522,735 17.3% 17.6% 3,411 128,866 - - - - $1.53 Total 5,100,355 989,832 19.4% 8,252 998,084 19.6% 19.5% (7,010) 78,181 - - - - $1.61 MARKET TOTAL A 6,349,654 1,516,983 23.9% 39,745 1,556,728 24.5% 23.2% 26,791 383,883 123,617 323,617 197,000 125,000 $2.65 B 17,498,775 3,083,065 17.6% 120,120 3,203,185 18.3% 18.1% (8,244) 256,741-46,650-148,000 $1.96 C 19,852,932 3,182,267 16.0% 37,811 3,220,078 16.2% 16.6% 80,072 587,372-28,940-212,140 $1.64 Total 43,701,361 7,782,315 17.8% 197,676 7,979,991 18.3% 18.1% 98,619 1,227,996 123,617 399,207 197,000 485,140 $1.97 QUARTERLY COMPARISON AND TOTALS Q4-15 43,701,361 7,782,315 17.8% 197,676 7,979,991 18.3% 18.1% 98,619 1,227,996 123,617 399,207 197,000 485,140 $1.97 Q3-15 43,577,744 7,757,317 17.8% 150,546 7,907,863 18.1% 19.0% 359,877 1,129,377 46,650 275,590 242,000 435,140 $1.94 Q2-15 43,531,094 8,070,544 18.5% 182,799 8,253,343 19.0% 19.1% 104,315 769,500 16,052 228,940 300,444 435,140 $1.91 Q1-15 43,515,042 8,158,807 18.7% 172,615 8,331,422 19.1% 20.2% 665,185 665,185 212,888 212,888 300,444 310,140 $1.89 Q4-14 43,302,154 8,611,104 19.9% 146,951 8,758,055 20.2% 19.2% (171,446) 564,726 268,420 376,620 460,438 418,140 $1.90 Q3-14 43,033,734 8,171,238 19.0% 111,340 8,282,578 19.2% 19.3% 54,717 736,172 12,000 108,200 757,444 150,040 $1.87 Q2-14 43,021,734 8,213,955 19.1% 103,002 8,316,957 19.3% 20.6% 552,246 681,455-96,200 706,894 255,040 $1.87 Continued from Page 16 attitudes towards expansion and technological innovations that are cutting the amount of space required per office employee. We think 2016 will proceed much as 2015 did, with minor setbacks and overall positive performance. Development of new office space should remain restrained, with completions likely totaling something in the neighborhood of 100,000 square feet, with the potential for double that amount. We think net absorption will come in at roughly 1.0 million square feet, which should bring vacancy down to approximately 16.0 percent by the end of 2016. If demand does remain healthy, asking rates will continue to rise, probably ending the year at approximately $2.05 psf FSG. 18 Las Vegas Research & Forecast Report Q4 2015 Economic Review Colliers International

Research & Forecast Report LAS VEGAS RETAIL Q4 2015 Retail Back on Track > > The retail market posted a relatively strong 2015, in its second modest expansion since the Great Recession > > Taxable retail sales are strong, but retail employment growth continues to be weak RETAIL Employment RETAIL Taxable Sales +7.0 RETAIL SF/Job -2.8% > > Asking rates are now increasing in response to demand +4.0% Q3 For Southern Nevada s retail market, the normal business cycle reasserted itself over a year ago. The market is now in its second modest expansion phase, and posted 89,390 square feet of net absorption in the fourth quarter of 2015. This brought net absorption for all of 2015 to 565,474 square feet. Vacancy decreased to 9.6 percent from the third quarter s 9.7 percent, and is now 0.7 percentage points lower than one year ago. Retail completions totaled 29,800 square feet in the fourth quarter, and 152,429 square feet for 2015 as a whole. The asking rental rate for retail space increased to $1.31 per square foot (psf) on a triple-net (NNN) basis. Historical Vacancy Rates and Asking Lease Rates 11.0% $1.42 Market Indicators Relative to prior period Market Q4 2015 Market Q1 2016* VACANCY NET ABSORPTION COMPLETIONS RENTAL RATE *Projected Summary Statistics Q4 2015 Las Vegas Market Q4-2014 Q3-2015 Q4-2015 10.0% $1.39 Vacancy Rate 10.3 9.7% 9.6% 9.0% $1.36 8.0% $1.33 Asking Rent (PSF, NNN) $1.26 $1.27 $1.31 7.0% $1.30 Net Absorption (SF) -207,920 127,999 89,390 6.0% $1.27 New Completions (SF) 49,895 55,000 29,800 5.0% 4 Q 2013 1 Q 2014 2 Q 2014 3 Q 2014 4 Q 2014 1 Q 2015 2 Q 2015 3 Q 2015 4 Q 2015 Vacancy Asking Rental Rate $1.24 Overall Asking Rents Per Square Foot Previous Quarter Current Quarter For Southern Nevada s retail market, the normal business cycle reasserted itself over a year ago. The market is now in its second modest expansion phase Power Center $1.58 $1.61 Community Center $1.20 $1.26 Neighborhood Center $1.35 $1.36 Strip Center $1.16 $1.18

According to the Nevada Department of Employment, Training and Rehabilitation, Southern Nevada s retail job market took a step back in October 2015 (the latest month of data available) compared with October 2014, losing approximately 3,500 jobs in the past twelve months. Job losses of this magnitude are not common, especially during an economic expansion, but year-over-year growth has not been spectacular in 2015. Unemployment in the Las Vegas-Paradise MSA stood at 6.3 percent as of October 2015, down from 7.1 percent in October 2014. Since October 2014, total employment in Southern Nevada has increased by 43,300 jobs. Historical Net Absorption vs. Completions 300,000 200,000 100,000 0-100,000 The Nevada Department of Taxation reports that Clark County s taxable retail sales for the third quarter of 2015 (the most recent quarter of data available) totaled $5.744 billion, down from the $5.969 billion in taxable retail sales recorded in the second quarter of 2015, but better than the $5.623 billion in taxable sales recorded in the third quarter of 2014. The highest growth in taxable sales in the third quarter of 2015 compared to the second third of 2014 were in gas stations (15.5 percent growth), despite lower gas prices. Gas stations generally make their profits from the attached convenience stores, rather than at the pumps. Strong increases were also recorded in home improvement and garden retailers (12.5 percent growth), home furnishings (6.4 percent growth) and food service and drinking places (6.0 percent growth). Miscellaneous store retailers saw taxable sales decrease by 23.1 percent year-overyear. Other decreases in sales were experienced by electronics and appliances stores (negative 5.2 percent growth), general merchandise stores (negative 1.9 percent growth), clothing and accessories stores (negative 1.8 percent growth) and hobby and sporting good stores (negative 0.4 percent growth). An increase in home furnishings and home improvement sales, coupled with a decrease in electronics and appliances suggests a community that is not so much growing into new homes as one that is making long overdue improvements to existing homes. -200,000-300,000 4 Q 2013 1 Q 2014 2 Q 2014 3 Q 2014 4 Q 2014 1 Q 2015 2 Q 2015 3 Q 2015 4 Q 2015 Net Absorption Occupancy vs. Retail Employment 82,000 80,000 78,000 76,000 74,000 72,000 Completions 93.0% 92.0% 91.0% 90.0% 89.0% 88.0% 70,000 87.0% 4 Q 2013 1 Q 2014 2 Q 2014 3 Q 2014 4 Q 2014 1 Q 2015 2 Q 2015 3 Q 2015 4 Q 2015 Retail Jobs Occupancy Rate The only retail development completed in Southern Nevada in the fourth quarter of 2015 was a 29,800 square foot strip center on South Maryland Parkway, in the Henderson submarket. In 2015, a total of 152,429 square feet of retail space was completed, consisting of community center and strip center space located in the Downtown, Henderson and Northwest submarkets. Forward supply at the end of 2015 constituted 980,425 square feet, which would represent a mild expansion of Southern Nevada s retail inventory if it all were completed. The most notable new retail project in Southern Nevada, though not tracked in our numbers, is the freestanding IKEA retail building in the Southwest, which should initially be 351,000 square feet with the potential for future expansion. Gross absorption of retail product totaled 4.2 million square feet in 2015, a major improvement over 2014 s meager 2.9 million square feet of gross absorption. The retail market has been more active in 2015 than in 2014, and this is leading to higher net absorption and decreasing vacancy rates. 20 Las Vegas Research & Forecast Report Q4 2015 Economic Review Colliers International

Retail vacancy in Southern Nevada stood at 9.6 percent at the end of 2015, a decrease of 0.7 points from 2014 s vacancy of 10.3 percent. This represents the second expansion of the retail market since the end of the Great Recession, the first occurring between 2012 and 2013. At current rates of net absorption, it would take the retail market eight years to get back to a normalized 5.0 percent vacancy rate. Among submarkets, the Valley s highest vacancy this quarter was 13.7 percent in University East, followed by 11.0 percent in West Central. The Northeast submarket had the lowest vacancy rate in the Valley at 6.7 percent, followed by Northwest at 7.7 percent. North Las Vegas, Downtown, Northeast, Henderson and West Central experienced decreases in vacancy this quarter, while Southwest, Northwest and University East saw vacancy increase. The average asking rental rate for retail space in Southern Nevada stood at $1.31 per square foot (psf) on a Triple-Net basis (NNN). This was $0.04 higher than in the third quarter of 2015, and $0.05 higher than one year ago. Adjusting for inflation, asking rental rates are now $0.97 psf NNN in 2002 dollars, approximately $0.42 lower than in 2002. Over the past quarter, average asking rents increased in all submarkets except University East, where they decreased by $0.05 psf. The highest increase in asking rates occurred in North Las Vegas, where they increased by $0.11 to $1.35 psf NNN. The highest asking rents in Southern Nevada were in the Southwest submarket, at $1.65 psf NNN and lowest in University East at $0.97 psf NNN. Since last quarter, power center asking rents increased by $0.04 to $1.61 psf NNN, community center asking rents decreased by $0.06 to $1.26 psf NNN, neighborhood center asking rents increased by $0.01 to $1.36 psf NNN and strip center asking rents increased to $0.02 to $1.18 psf NNN. Shopping center investment sales volume in 2015 was $608.2 million in 49 sales totaling 3.2 million square feet. The average sales price was $191.18 psf, and the average cap rate was 7.7 percent. Single-tenant retail investment sales volume in 2015 was $266.2 million in 53 sales totaling 821,000 square feet. The average sales price was $324.36 psf, and the average cap rate was 7.1 percent. Single-tenant retail owner/ Single Tenant Retail 2011 2012 2013 2014 2015 No. Sales 28 25 49 63 53 Square Footage Sold 825,000 319,000 868,000 551,000 821,000 Sales Volume $62.9 MM $78.2 MM $146.0 MM $192.3 MM $266.2 MM Average Price/SF $76.23 $244.81 $168.23 $348.70 $324.36 Average Sale Size (SF) 30,000 13,000 18,000 9,000 15,000 Cap Rate 7.2% 7.1% Shopping Center Retail 2011 2012 2013 2014 2015 No. Sales 27 30 48 61 49 Square Footage Sold 2,393,000 1,781,000 3,892,000 2,888,000 3,181,000 Sales Volume $282.7 MM $194.0 MM $378.4 MM $561.1 MM $608.2 MM Average Price/SF $118.11 $108.90 $97.21 $194.28 $191.18 Average Sale Size (SF) 88,000 59,000 81,000 47,000 65,000 Cap Rate 8.9% 7.7% Retail Development Pipeline Project Type Submarket Size (SF) Completion Under Construction 210,000 Silverado Promenade Neighborhood Center University East 130,000 Q1-2016 Durango Arby Plaza Neighborhood Center Southwest 80,000 Q1-2016 Whitney Ranch Retail Strip Retail Henderson 42,000 Q1-2016 Upscale Retail Plaza Strip Retail Southwest 19,000 Q1-2016 Planned Construction 453,000 Decatur 215 Community Center Northwest 152,000 2017 Smiths at Cadence Neighborhood Center Henderson 132,000 2016 Union Village Strip Retail Henderson 125,000 2017 Caroline s Court Community Center Northwest 119,000 2017 DCs Plaza Neighborhood Center Northwest 73,000 2016 Silverado Ranch Boulevard Strip Retail University East 66,000 2016 Centennial Hills Center Strip Retail Northwest 31,000 2017 21 Las Vegas Research & Forecast Report Q4 2015 Economic Review Colliers International

user sales volume in 2015 was $117.8 million in 43 sales totaling 889,000 square feet. The average sales price for owner/user single-tenant retail was $132.47 psf. Retailers slated to enter Southern Nevada or expanding here include Paul Mitchell, Discount Tire, Lolo s Chicken & Waffles, Chick-Fil-A, PDQ Chicken, Café Rio, Five Guys Burger & Fries, Black Bear Diner, Wingnutz, Pei Wei, and Cheeseburger Cheeseburger. Target is introducing a new Target Express concept to compete with Dollar General or Walgreens, though no locations have yet been announced in Southern Nevada. Two grocery chains, Fresh & Easy and Haggen s, ceased operations in Southern Nevada in 2015, Haggen s only months after it started operations. The Walgreens-Rite-Aid merger did not result in any closures in Southern Nevada. Other grocery store moves include Sprouts occupying a vacated store at Lake Mead & Buffalo, Albertsons occupying three vacated Haggen s locations in the Henderson submarket, Walmart planning locations at Durango & Hualapai and Boulder & Russell, Smart & Final taking the old Gold s Gym at Flamingo & Sandhill, and Smith s Marketplace, a 125,000 square foot concept, looking into putting stores in the Cadence MPC and Skye Canyon. On the whole, 2015 was a very positive year for commercial real estate in Southern Nevada. The market saw expansions in industrial, office and retail. For retail, this is the second period of expansion since the end of the Great Recession, indicating that the retail market has entered the new normal and is back into the normal business cycle of expansion and contraction. We expect that this will continue into 2016. Retail hiring has been weak of late, probably because of the notable closures of Fresh & Easy and Haggen s locations in the Valley. November and December hiring, if strong, could portend a continuation of the current expansion through all of 2016. We expect the former scenario is more likely than the latter, and that 2016 will close the year with more than 500,000 square feet of new retail product added to inventory, more than 600,000 square feet of net absorption, and a vacancy rate of approximately 9.1 percent. This would drive the weighted average asking rate to approximately $1.36 psf NNN. November and December hiring, if strong, could portend a continuation of the current expansion to mid-year 2016. - John Stater, Research & GIS Manager Las Vegas Households Ave. HH Income (2015) Occupied Retail Space (2015 Average) Occupied Retail Space (2016 Projected) Downtown 36,500 $37,500 1,940,000 1,949,000 Henderson 107,100 $78,000 9,237,000 9,779,000 North Las Vegas 71,600 $62,000 5,552,000 5,993,000 Northeast 78,600 $50,400 3,099,000 3,237,000 Northwest 149,400 $74,200 12,557,000 13,199,000 Southwest 91,100 $75,900 7,644,000 8,421,000 University East 104,200 $54,200 7,597,000 7,905,000 West Central 54,600 $49,000 6,208,000 6,298,000 Source of Demographic Data: Claritas 22 Las Vegas Research & Forecast Report Q4 2015 Economic Review Colliers International

215 NORTH LAS VEGAS Significant Retail Sale Activity Montecito Crossing 164,000 SF - $37,200,000 95 $227.00/SF October 2015 NORTHWEST 15 Community Center 2025 N Buffalo Drive WEST CENTRAL DOWN TOWN NORTHEAST LAS VEGAS 2,375 SF - $2,880,000 $1,212.63/SF October 2015 Freestanding Sahara Durango Center 95 44,479 SF - $10,550,000 $237.19/SF UNIVERSITY AIRPORT December 2015 Community Center Flamingo Fort Apache Center 215 108,731 SF - $20,000,000 $183.94/SF December 2015 SOUTHWEST HENDERSON Neighborhood Center RESORT CORRIDOR 5651 S Grand Canyon Drive 12,874 SF - $3,500,000 $271.87/SF December 2015 Strip Retail Lease Activity Property Name Lease Date Lease Term Size Lease Rate Type Pecos Legacy Center Aug 2015 120 months 3,000 SF $1.11 NNN Community Center Tierra Rainbow Professional Aug 2015 60 months 2,600 SF $2.14 NNN Strip Retail Plaza North Jul 2015 72 months 2,400 SF $1.17 NNN Strip Retail Sahara Pavilion North Aug 2015 60 months 1,400 SF $1.15 NNN Power Center Cheyenne Pointe Jul 2015 60 months 1,300 SF $1.47 NNN Neighborhood Center 23 Las Vegas Research & Forecast Report Q4 2015 Economic Review Colliers International

Market Comparisons - Las Vegas Retail Market TYPE TOTAL INVENTORY SF DIRECT VACANT SF DIRECT VACANCY RATE SUBLEASE VACANT SF TOTAL VACANT SF VACANCY RATE CURRENT QUARTER VACANCY RATE PRIOR QUARTER NET ABSORPTION CURRENT QTR SF NET ABSORPTION YTD SF COMPLETIONS CURRENT QTR SF COMPLETIONS YTD SF UNDER CONSTRUCTION SF PLANNED CONSTRUCTION SF WEIGHTED AVG ASKING RENTAL RATE DOWNTOWN PC - - n/a - - n/a n/a - - - - - - $- CC 607,055 57,211 9.4% - 57,211 9.4% 10.1% 3,920 94,693 - - - - $1.36 NC 518,070 54,207 10.5% - 54,207 10.5% 10.5% 170 (54,207) - - - - $0.99 SC 1,022,022 71,850 7.0% - 71,850 7.0% 8.3% 13,150 47,663-52,470 - - $1.41 Total 2,147,147 183,268 8.5% - 183,268 8.5% 9.3% 17,240 88,149-52,470 - - $1.26 HENDERSON PC 2,896,215 257,924 8.9% - 257,924 8.9% 8.9% 363 23,287 - - - - $1.78 CC 2,646,472 186,622 7.1% - 186,622 7.1% 8.4% 36,850 62,865-15,159 - - $1.30 NC 2,870,411 306,634 10.7% 161,894 468,528 16.3% 16.3% (2,388) (44,638) - - - - $1.51 SC 1,883,790 243,655 12.9% 2,093 245,748 13.0% 14.6% 55,732 19,752 29,800 29,800 41,745 125,000 $1.21 Total 10,296,888 994,835 9.7% 161,894 1,156,729 11.2% 11.9% 90,557 61,266 29,800 44,959 41,745 125,000 $1.36 NORTH LAS VEGAS PC 774,065 38,161 4.9% - 38,161 4.9% 3.7% (9,320) (6,096) - - - - $3.00 CC 2,311,384 185,992 8.0% - 185,992 8.0% 13.0% 114,370 159,994 - - - - $1.28 NC 1,806,524 124,512 6.9% - 124,512 6.9% 6.8% (827) 43,951 - - - - $1.55 SC 1,343,806 268,382 20.0% - 268,382 20.0% 20.5% 7,270 (77,811) - - - - $1.07 Total 6,235,779 617,047 9.9% - 617,047 9.9% 11.7% 111,493 120,038 - - - - $1.26 NORTHEAST PC - - n/a - - n/a n/a - - - - - - $- CC 1,281,026 79,702 6.2% 18,614 98,316 7.7% 8.8% 14,390 59,141 - - - - $1.09 NC 1,306,795 102,150 7.8% 62,301 164,451 12.6% 13.2% 7,580 (19,677) - - - - $1.52 SC 768,914 43,818 5.7% - 43,818 5.7% 6.3% 4,432 767 - - - - $0.83 Total 3,356,735 225,670 6.7% 80,915 306,585 9.1% 9.9% 26,402 40,231 - - - - $1.10 NORTHWEST PC 3,158,686 237,666 n/a - 237,666 7.5% 5.7% (59,057) (4,505) - - - - $1.77 CC 4,336,890 209,792 4.8% 73,059 282,851 6.5% 4.9% 613 40,752-55,000-270,982 $1.58 NC 3,636,860 355,276 9.8% 117,600 472,876 13.0% 13.3% (5,869) 29,106 - - - 72,550 $1.15 SC 2,487,836 252,461 10.1% 2,300 254,761 10.2% 10.5% 7,029 110,762 - - - 31,000 $1.27 Total 13,620,272 1,055,195 7.7% 190,659 1,245,854 9.1% 8.3% (57,284) 176,115-55,000-374,532 $1.37 SOUTHWEST PC 944,314-0.0% 6,900 6,900 0.7% 0.7% - 6,403 - - - - $1.51 CC 2,616,421 229,054 8.8% 2,651 231,705 8.9% 6.9% (48,985) 4,585 - - - - $1.75 NC 2,223,100 161,167 7.2% - 161,167 7.2% 5.0% (49,117) (16,846) - - 80,000 - $1.64 SC 2,459,782 278,240 11.3% - 278,240 11.3% 10.9% (11,966) 23,533 - - - 12,640 $1.57 Total 8,243,617 668,461 8.1% 9,551 678,012 8.2% 6.9% (110,068) 17,675 - - 80,000 12,640 $1.59 UNIVERSITY EAST PC 1,210,223 145,473 12.0% - 145,473 12.0% 10.5% (18,498) 54,725 - - - - $1.04 CC 2,761,146 427,760 15.5% 16,989 444,749 16.1% 15.7% 5,116 (11,193) - - - - $0.80 NC 1,953,965 152,115 7.8% 60,560 212,675 10.9% 11.4% (9,088) 5,599 - - 129,588 - $1.22 SC 2,894,365 482,793 16.7% 8,000 490,793 17.0% 17.1% 8,101 (28,824) - - - 65,851 $1.02 Total 8,819,699 1,208,141 13.7% 77,549 1,285,690 14.6% 14.5% (14,369) 20,307 - - 129,588 65,851 $1.11 WEST CENTRAL PC 1,138,224 145,136 12.8% - 145,136 12.8% 12.2% (6,797) 60,690 - - - - $1.27 CC 1,910,276 281,742 14.7% - 281,742 14.7% 16.3% 29,039 (65,279) - - - - $1.32 NC 1,746,530 94,012 5.4% 96,267 190,279 10.9% 12.7% 26,717 19,257 - - - - $1.18 SC 2,212,326 248,197 11.2% - 248,197 11.2% 10.2% (23,540) 27,025 - - - - $1.04 Total 7,007,356 769,087 11.0% 96,267 865,354 12.3% 12.8% 25,419 41,693 - - - - $1.04 MARKET TOTAL PC 10,121,727 824,360 8.1% 6,900 831,260 8.2% 7.3% (93,309) 134,504 - - - - $1.61 CC 18,470,670 1,657,875 9.0% 111,313 1,769,188 9.6% 9.9% 155,313 345,558-70,159-270,982 $1.26 NC 16,062,255 1,350,073 8.4% 498,622 1,848,695 11.5% 11.6% (32,822) (37,455) - - 209,588 72,550 $1.36 SC 15,072,841 1,889,396 12.5% 12,393 1,901,789 12.6% 12.8% 60,208 122,867 29,800 82,270 41,745 234,491 $1.18 Total 59,727,493 5,721,704 9.6% 629,228 6,350,932 10.6% 10.7% 89,390 565,474 29,800 152,429 251,333 578,023 $1.26 QUARTERLY COMPARISON AND TOTALS Q4-15 59,727,493 5,721,704 9.6% 629,228 6,350,932 10.6% 10.7% 89,390 565,474 29,800 152,429 251,333 578,023 $1.26 Q3-15 59,697,693 5,781,294 9.7% 579,499 6,360,793 10.7% 10.9% 127,999 476,084 55,000 122,629 209,588 452,095 $1.27 Q2-15 59,642,693 5,854,293 9.8% 675,838 6,530,131 10.9% 11.0% 166,145 348,085 67,629 67,629 184,588 224,550 $1.28 Q1-15 59,575,064 5,952,809 10.0% 623,327 6,576,136 11.0% 10.8% 181,940 181,940 0 0 122,629 468,883 $1.26 Q4-14 59,575,064 6,134,749 10.3% 295,068 6,429,817 10.8% 10.4% (207,920) 90,643 49,895 300,213 122,629 564,865 $1.26 Q3-14 59,525,169 5,876,934 9.9% 306,275 6,183,209 10.4% 10.3% 140,627 298,563 220,000 250,318 187,210 167,159 $1.27 Q2-14 59,305,169 5,797,561 9.8% 305,945 6,103,506 10.3% 10.7% 250,860 157,936 30,318 30,318 312,995 251,184 $1.26 PC = Power Center CC = Community Center NC = Neighborhood Center SC = Strip Center 24 Las Vegas Research & Forecast Report Q4 2015 Economic Review Colliers International

Research & Forecast Report LAS VEGAS MULTIFAMILY Q4 2015 New Completions Test Market Resiliency > > Multifamily vacancy remained below 5.0 percent in the third quarter of 2015 ELECTRIC Meter Hookups NEW HOME Median Price THIRTY YEAR Mortgage Rate > > Development follows strong demand; there are more multifamily projects under construction now than in several years -0.2 > > Asking rates continued to increase, but may be pushed down as new inventory enters the market +2.0% +10.2% Points According to statistics provided by REIS, multifamily vacancy in Southern Nevada decreased in the third quarter of 2015 (the most recent quarter of available data), extending a three year long streak. Vacancy stood at 4.7 percent in the third quarter, 0.1 percentage points lower than last quarter, and 0.5 percentage points lower than in the third quarter of 2015. Class A properties were 4.9 percent vacant in the third quarter, 0.5 percentage points lower than last quarter. Class B/C properties were 4.4 percent vacant, 1 percentage point lower than last quarter. Market Indicators Relative to prior period Market Q3 2015 Market Q4 2015* VACANCY NET ABSORPTION COMPLETIONS RENTAL RATE *Projected Historical Vacancy Rates and Rental Rates 7.00% 6.00% 5.00% 4.00% 3.00% 2.00% 1.00% Vacancy vs Rents $920 $900 $880 $860 $840 $820 $800 Summary Statistics Q3 2015 Las Vegas Market Q3-2014 Q4-2015 Q3-2015 Vacancy Rate 5.2% 4.8% 4.7% Rent (Per Unit) $873 $906 $910 Net Absorption YTD (Units) 1,179 1,389 1,524 New Completions YTD (Units) 341 1,110 1,434 0.00% 2 Q 2013 3 Q 2013 4 Q 2013 1 Q 2014 2 Q 2014 3 Q 2014 4 Q 2014 1 Q 2015 2 Q 2015 Vacancy Rate Average Rental Rate $780 Overall Asking Rents Per Unit Per Month Previous Quarter Current Quarter Class A $1,023 $1,033 Class B/C $774 $780

According to statistics provided by REIS, multifamily vacancy in Southern Nevada decreased in the third quarter of 2015 (the most recent quarter of available data), extending a three year long streak. Vacancy stood at 4.7 percent in the third quarter, 0.1 percentage points lower than last quarter, and 0.5 percentage points lower than in the third quarter of 2015. Class A properties were 4.9 percent vacant in the third quarter, 0.5 percentage points lower than last quarter. Class B/C properties were 4.4 percent vacant, 1.0 percentage point lower than last quarter. All multifamily submarkets other than East Las Vegas showed positive net absorption in the third quarter of 2015, with the highest net absorption found in Northwest/Southwest (339 units) despite a small negative contribution from Class B/C multifamily in that submarket. On a property class basis, Class A multifamily had 166 units of net absorption in the third quarter of 2015, while Class B/C properties had negative 31 units of net absorption. One new multifamily project was completed in the third quarter of 2015 on Wigwam Parkway in the Henderson submarket. This totaled 324 units, bringing year-to-date completions up to 1,434 units. Another 866 units are expected to be completed in the fourth quarter of 2015. A total of 1,925 units of multifamily are under construction in the Valley, with another 1,704 units planned to begin construction within the next twelve months. This forward supply represents the largest expansion of inventory in the Valley in over five years, and is a response to the strong demand multifamily has experienced since the end of the Great Recession. Asking rents for multifamily stood at $910 per unit in the third quarter of 2015, increasing by $37 psf year-over-year, and only $4 psf since last quarter. Class A properties had an average asking rent of $1,033 per unit, while Class B/C properties had an average asking rent of $780. Strong demand in 2015 has translated into stronger growth in asking rents, though the addition of newly constructed units to the Valley s inventory should slow down rental growth in 2016. Historical Net Absorption vs. Completions 900 800 700 600 500 400 300 200 100 0 2 Q 2013 3 Q 2013 4 Q 2013 1 Q 2014 2 Q 2014 3 Q 2014 4 Q 2014 1 Q 2015 2 Q 2015 Net Absorption (Units) Sales (Units) vs. Price Per Unit 7,000 6,000 5,000 4,000 3,000 2,000 1,000 Completions (Units) $115,000 $105,000 $95,000 $85,000 $75,000 $65,000 $55,000 0 $45,000 2 Q 2013 3 Q 2013 4 Q 2013 1 Q 2014 2 Q 2014 3 Q 2014 4 Q 2014 1 Q 2015 2 Q 2015 Total Sales (Units) Average Price Per Unit REIS predicts that multifamily vacancy has bottomed out, and will begin climbing due to increased development and competition from singlefamily residences. They predict that vacancy will reach 6.0 percent in 2019, after 5,452 units have been added to Southern Nevada s multifamily inventory. Demographics Submarket Estimated Households Renter Occupied Median Household Average Household Proj. Annual Growth Rental Households (2015-2020) Downtown 49,000 59% $30,100 2.8 69 East 56,000 44% $41,000 2.7 241 Henderson/Southeast 139,000 37% $57,000 2.6 720 North Las Vegas 113,000 38% $49,000 3.1 584 Northeast 48,000 48% $38,000 3.3 194 Northwest/Southwest 148,000 33% $63,000 2.7 840 University 35,000 77% $32,000 2.2 113 West Central 106,000 54% $44,000 2.4 458 TOTAL 694,000 43% $49,000 2.7 3,521 Source: Claritas 26 Las Vegas Research & Forecast Report Q4 2015 Economic Review Colliers International

Unemployment in the Las Vegas-Paradise MSA stood at 6.3 percent as of October 2015, down from 7.1 percent in October 2014. Unemployment averaged 7.9 percent in 2014, compared to 10.0 percent in 2013. Unemployment in 2015 has averaged 7.0 percent. Since October 2014, total employment in Southern Nevada increased by 43,300 jobs, the majority in leisure and hospitality (+19,700 jobs), construction (+11,000 jobs), and professional and business services (+8,700 jobs). Leisure & hospitality and construction have long been the twin pillars of economic growth in Southern Nevada, and a return to strong employment growth in those industries bodes well for the economy as a whole. The only industries showing a loss of jobs year-over-year was trade, transportation and utilities (-500 jobs) and financial activities (-2,100 jobs). According to data provided by the Nevada Department of Motor Vehicles, the number of out-of-state driver s licenses turned in to the DMV was 51,641 in the first ten months of 2015. This is slightly lower than in the first ten months of 2014, when they reported 55,035 out-ofstate licenses turned in, and suggests that population growth, despite rebounding from the lows of the Great Recession, remains sluggish by Clark County s standards. Since Las Vegas s birth in 1905, population growth has been a major driver of economic growth. In the past, population growth was driven by the Valley s low unemployment rate and retirees looking to escape the dramatic weather and high cost of living elsewhere in the United States. Multifamily sales increased in the third quarter of 2015 compared to the second quarter, with 3,887 units selling at an average sales price per unit of $73,685. Sales volume totaled $286.4 million. For 2015 year- to-date, 10,085 units have sold with a sales volume of $784.7 million. This is better than in the first three quarters of 2014, and represents an improvement over mid-year comparisons. As Southern Nevada s multifamily inventory continues to expand through the end of 2015 and during 2016, the market s resilience will be tested. 2015 should see a 1.4 percent increase in multifamily inventory, and this should apply downward pressure on rental rates, which have been expanding for five years. If new properties lease up quickly, the downward pressure will be slight at best, and demand for multifamily investments will remain strong. If, on the other hand, demand does not meet expectations, multifamily sales could suffer. So far, 2015 s expansion of inventory by 1,434 units has been quite successful, with vacancy continuing to decrease and rents continuing to rise, though perhaps at a slower rate than in previous quarters. The addition of another 2,000 units over the next twelve months may be tougher to absorb. Complex Under Construction Submarket Units Paseo Verde Gibson Apartments Henderson 162 TGP at Horizon Ridge Henderson 221 Warmington Martin Apartments Northwest/Southwest 190 Elysian at Hacienda Northwest/Southwest 466 The Wyatt Southwest 308 Hualapai/Peace Apartments Southwest 338 Post Apartments Southwest 240 TOTAL 1,925 Sales Data 2015 YTD 2014 2013 2012 2011 Units Sold 10,085 14,019 17,808 21,840 7,554 Average Price Per Unit $77,813 $73,627 $75,600 $65,425 $50,324 Cap Rate* 7.0% 6.0% 5.7% 7.3% 6.9% *Cap Rate Source: Real Capital Analytics, CoStar and Colliers International So far, 2015 s expansion of inventory by 1,434 units has been quite successful, with vacancy continuing to decrease and rents continuing to rise Cheyenne Point Apartments 27 Las Vegas Research & Forecast Report Q4 2015 Economic Review Colliers International

215 NORTHEAST Significant Multifamily Sales Activity NORTHWEST 95 15 Broadstone Azure 312 Units - $34,100,000 $109,300/Unit September 2015 Year Built - 2007 DOWNTOWN Lake Tonopah Apartments 356 Units - $16,800,000 $47,200/Unit November 2015 Year Built - 1996 SUMMERLIN WEST 95 EAST Park Vista 156 Units - $7,100,000 $45,500/Unit October 2015 Year Built - 1984 SOUTHWEST 215 HENDERSON/ GREEN VALLEY Mountain Vista Apartments 178 Units - $8,400,000 $47,200/Unit September 2015 Year Built - 1979 Sirius Avenue Apartments 280 Units - $15,500,000 $55,400/Unit September 2015 Year Built - 1980 Sales Activity Continued Property Name Sale Date Units Price Price/Unit Year Built Arville Park Apartments Sep 2015 140 $7.3 MM $51,900 1975 Lake Sahara Apartments Sep 2015 296 $15.2 MM $51,300 1972 Autumn Ridge Apartments Aug 2015 168 $11.5 MM $68,600 1999 Villas Desert Pointe Apartments Aug 2015 346 $18.2 MM $52,500 1973 Alexander Gardens Apartments Aug 2015 480 $44.2 MM $92,100 1996 Source: Real Capital Analytics 28 Las Vegas Research & Forecast Report Q4 2015 Economic Review Colliers International

Market Comparisons - Las Vegas Multifamily Market CLASS TOTAL INVENTORY UNITS CURRENT VACANCY RATE PRIOR QTR VACANCY RATE NET ABSORPTION NET ABSORPTION YTD UNITS CURRENT QTR COMPLETIONS YTD UNIT COMPLETIONS UNDER CONSTRUCTION UNITS PLANNED CONSTRUCTION UNITS TOTAL SALES UNITS AVERAGE PRICE PER UNIT AVERAGE RENTAL RATE DOWNTOWN A 2,773 1.6% 4.5% (1) 30-80 - - - n/a $871 B/C 13,454 2.1% 4.3% 31 156 - - - - 1,665 $55,172 $736 Total 16,227 2.1% 2.6% 30 186-80 - - 1,665 $55,172 $754 EAST LAS VEGAS A 6,383 4.1% 4.5% (2) 34 - - - - - n/a $879 B/C 8,939 3.7% 4.3% (6) 96 - - - - 698 $57,374 $747 Total 15,322 3.9% 4.4% (8) 130 - - - - 698 $57,374 $805 HENDERSON/GREEN VALLEY A 19,111 5.7% 4.5% 114 258 324 994 383 348 - n/a $1,112 B/C 8,068 7.7% 4.3% (55) 16 - - - 348 $112,428 $962 Total 27,179 6.3% 6.9% 59 274 324 994 383 348 348 $112,428 $1,057 NORTH LAS VEGAS A 12,920 5.3% 4.5% 47 104 - - - - - n/a $930 B/C 9,552 5.4% 4.3% (33) 86 - - - - - n/a $733 Total 22,472 5.4% 5.9% 14 190 - - - - - n/a $845 NORTHEAST A 2,172 5.1% 4.5% (9) (9) - - - - - n/a $794 B/C 6,643 8.1% 4.3% 18 146 - - - - 384 $97,995 $716 Total 8,815 7.4% 8.3% 9 137 - - - - 384 $97,995 $729 NORTHWEST/SOUTHWEST A 16,652 6.0% 4.5% 1 347-360 1,542 1,356 - n/a $1,171 B/C 5,452 3.2% 4.3% 7 (8) - - - - 728 $98,214 $1,020 Total 22,104 5.3% 4.8% 8 339-360 1,542 1,356 728 $98,214 $1,149 UNIVERSITY A 2,180 1.3% 4.5% 11 45 - - - - - n/a $979 B/C 12,321 5.0% 4.3% 5 122 - - - - 64 $97,656 $715 Total 14,501 4.4% 4.9% 16 167 - - - - 64 n/a $727 WEST CENTRAL A 5,671 2.4% 4.5% 5 45 - - - - - n/a $964 B/C 6,860 0.9% 4.3% 2 56 - - - - - n/a $750 Total 12,531 1.6% 2.0% 7 101 - - - - - n/a $898 MARKET TOTAL A 67,862 4.9% 5.4% 166 854 324 1,434 1,925 1,704 - n/a $1,033 B/C 71,289 4.4% 5.4% (31) 670 - - n/a n/a 3,887 $73,685 $780 Total 139,151 4.7% 5.4% 135 1,524 324 1,434 1,925 1,704 3,887 $73,685 $910 QUARTERLY COMPARISON AND TOTALS Q3-15* 139,151 4.7% 5.4% 135 1,524 324 1,434 1,216 1,704 3,887 $73,685 $910 Q2-15 138,827 4.8% 5.1% 647 1,389 840 1,110 1,617 2,222 2,626 $77,603 $906 Q1-15 137,987 5.1% 5.4% 742 742 270 270 1,617 2,222 3,572 $82,458 $889 Q4-14 137,717 5.4% 5.2% 370 1,549 170 511 1,617 2,222 3,572 $82,458 $878 Q3-14 137,547 5.2% 5.5% 348 1,179-341 729 601 3,886 $70,279 $873 Q2-14 137,547 5.5% 5.7% 608 831 255 341 985 601 2,262 $84,836 $866 * Most recent quarter of data Source: REIS Sales Data provided by Colliers International 29 Las Vegas Research & Forecast Report Q4 2015 Economic Review Colliers International

Research & Forecast Report LAS VEGAS MEDICAL OFFICE Q4 2015 Getting Better All the Time > > Medical office has its first positive year since 2010 HEALTHCARE Employment HEALTHCARE Spending MEDICAL SF/Job > > The second half of the year was weak, but strong gains in healthcare spending and employment should translate into a healthier 2016 +12.3-2.3% > > Asking rates are rising slowly, and should continue to do so through the first half of 2016 +3.2% Q3 After two strong quarters to start 2015, the year looked to be off to a good start; combining for 149,036 square feet of net absorption. Unfortunately, the demand for medical office space fizzled in the second half of the year, with quarters three and four combining for negative 28,665 square feet of net absorption. Still, given the recent history of Southern Nevada s medical office market, the negative net absorption is not that severe, and the positive net absorption was enough to give the medical office market its highest net absorption, as well as its first positive net absorption for the year as a whole, since 2010. The fourth quarter s negative net absorption drove vacancy rates up a notch to 16.7 percent. Asking rates increased slightly to $2.18 per square foot (psf) on a full service gross (FSG) basis. Historical Vacancy Rates and Rental Rates Market Indicators Relative to prior period Market Q3 2015 Market Q4 2015* VACANCY NET ABSORPTION COMPLETIONS RENTAL RATE *Projected Summary Statistics Q4 2015 Las Vegas Market Q4-2014 Q3-2015 Q4-2015 Vacancy Rate 18.2% 16.4% 16.7% 20.0% 19.0% $2.20 $2.18 Asking Rent (PSF, FSG) $2.16 $2.18 $2.16 18.0% $2.16 Net Absorption YTD (SF) 37,975-6,806-21,859 17.0% 16.0% $2.14 $2.12 New Completions YTD (SF) 0 0 0 15.0% $2.10 14.0% 13.0% 12.0% 11.0% $2.08 $2.06 $2.04 $2.02 Overall Asking Rents Per Square Foot Previous Quarter Current Quarter Class A $2.59 $2.59 10.0% 4 Q 2013 1 Q 2014 2 Q 2014 3 Q 2014 4 Q 2014 1 Q 2015 2 Q 2015 3 Q 2015 4 Q 2015 $2.00 Class B $2.25 $2.25 Class C $1.78 $1.80 Vacancy Rate Rental Rate Southern Nevada s healthcare market is finally on the mend, with strong growth in healthcare spending and healthcare employment.

According to the Nevada Department of Employment, Training and Rehabilitation, Southern Nevada s medical office job market improved in October 2015 (the latest month of data available) compared with October 2014, adding approximately 3,200 jobs in the past twelve months. This does not include jobs at hospitals. Employment that directly impacted medical office projects increased by approximately 800 jobs. Most of these additional jobs impacted Class C medical office projects. Unemployment in the Las Vegas-Paradise MSA stood at 6.3 percent as of October 2015, down from 7.1 percent in October 2014. Since October 2014, total employment in Southern Nevada has increased by 43,300 jobs. According to the Nevada Department of Taxation, taxable spending on ambulatory health care services in Clark County in the first three quarters of 2015 (the most recent quarter of available data) totaled $52.9 million dollars. This was a 12.9 percent increase over spending in the first three quarters of 2014, and has the most direct effect on the medical office market. Increases in healthcare spending were more impressive in other categories. Nursing and residential care facilities saw spending in the first three quarters of 2015 increase by 49.0 percent over the first three quarters of 2014. Hospital spending over the same periods increased by 65.3 percent. These are strong gains, and should translate into expansions of medical services in 2016, and thus hopefully more robust demand for medical office space. The last time medical office space was completed in Southern Nevada was during the fourth quarter of 2011, when 57,600 square feet was added to inventory. A new hospital at Union Village is now under construction. When it is completed, development of 150,000 square feet of medical office and 190,000 square feet of retail space will follow, although this could still be 15-20 months away. Vacancy in medical office space decreased in 2015 to 16.7 percent, from 18.2 percent at the end of 2014. This is the lowest end-of-year vacancy for the medical office market since 2012, when vacancy ended the year at 15.5 percent. The highest vacancy rates posted in the fourth quarter of 2015 were in the Southwest (37.2 percent), Airport (33.4 percent) and East Las Vegas (19.4 percent) submarkets. Downtown boasted the lowest vacancy rate in the Valley at 8.7 percent, followed by Henderson s 11.6 percent. Vacancy increased in the North Las Vegas, Northwest, Southwest and West Central submarkets in the fourth quarter of 2015, and decreased in Downtown, Henderson and East Las Vegas. Vacancy unfortunately remained stable at, 33.4 percent, in the Airport submarket. Southern Nevada posted 120,371 square feet of net absorption in 2015, despite negative net absorption in the third and fourth quarters of the year. This is significantly better than the negative 94,283 square feet of net absorption posted in 2014, and represents the first positive annual net absorption for medical office in Southern Nevada since 2010. That medical office buildings are losing business to other types of property, in particular professional office and retail, is part of the disconnect between strong employment and taxable sales growth in health care and relatively weak demand for medical office product. Historical Net Absorption vs. Completions 100,000 80,000 60,000 40,000 20,000 0-20,000-40,000-60,000-80,000-100,000-120,000 4 Q 2013 1 Q 2014 2 Q 2014 Net Absorption Healthcare Jobs vs. Occupancy Rate 84.0% 83.5% 83.0% 82.5% 82.0% 81.5% 81.0% 80.5% 80.0% 79.5% 4 Q 2013 1 Q 2014 2 Q 2014 3 Q 2014 Healthcare Jobs 3 Q 2014 4 Q 2014 4 Q 2014 1 Q 2015 1 Q 2015 2 Q 2015 Completions 2 Q 2015 3 Q 2015 Occupancy Rate 3 Q 2015 4 Q 2015 4 Q 2015 15,750 15,500 15,250 15,000 14,750 14,500 14,250 14,000 13,750 13,500 31 Las Vegas Research & Forecast Report Q4 2015 Economic Review Colliers International

The weighted average asking rental rate for medical office space at the end of 2015 was $2.19 per square foot (psf) on a full service gross (FSG) basis. Asking rents were $0.03 psf higher at the end of 2015 than they were at the end of 2014, likely due to the improved demand. In leases we have tracked over the past two years, effective lease rates for medical office leases have averaged 100.4 percent of asking lease rates, which suggests that asking rates are well targeted for current market conditions, and should continue to increase at a moderate clip through 2016. The Valley s highest average asking rate was in the Northwest submarket, at $2.44 psf FSG, the second quarterly decrease for that submarket this year. The lowest average asking rate was in the West Central submarket, at $1.80 psf, an increase of $0.06 from one quarter ago. Lease rates increased this quarter in East Las Vegas, North Las Vegas, Southwest and West Central, and decreased in Airport (by $0.10 psf), Downtown, Henderson and Northwest. Investment sales volume of medical office space in 2015 was $39.7 million in seven sales totaling 204,386 square feet. The average sales price was $194.19 per square foot. Cap rates ranged between 7.2 percent and 9.5 percent, and averaged 9.0 percent. For comparison, investment sales volume in 2014 was $94.7 million. Southern Nevada s healthcare market is finally on the mend, with strong growth in healthcare spending and employment. The Valley s medical office market is also improving, though not as rapidly as some might expect. This could improve in 2016, if employment and spending continue to improve at a rapid rate. Part of medical s drag is related to the new ways healthcare is delivered, such as though medical groups and in non-traditional settings, but the Valley s medical office market might also be suffering from a demographic shift, thus explaining very high vacancy rates in the Airport submarket, which was once welllocated to support the West Henderson market and in the Southwest, which did not see the population increases that were expected for that submarket in the 2000 s. The Airport submarket is probably out of luck in terms of improving its demographic destiny, but the Southwest is again seeing construction of single and multifamily homes, which should increase net absorption in that submarket in the near term. We think new medical developments will be slow in coming in 2016, though 2017 should see the completion of new medical space in Henderson after the completion of the hospital at Union Village. Net absorption should be slightly higher in 2016 than in 2015, and we expect vacancy will end the year below 15.0 percent. Owner/user sales volume of medical office space in 2015 was $34.2 million in seven sales totaling 87,236 square feet. The average sales price was $391.56. For comparison, owner/user sales volume in 2014 was only $12.1 million, with an average sales price of $159.36. 2724 Tenaya Way 32 Las Vegas Research & Forecast Report Q4 2015 Economic Review Colliers International

215 NORTH LAS VEGAS Significant Medical Office Sales Activity North Rancho Drive 95 38,000 - $26,750,000 $711.44/SF March 2015 NORTHWEST 15 Class B Cumorah Center SUMMERLIN WEST CENTRAL DOWN TOWN EAST LAS VEGAS 12,000 SF - $1,600,000 $136.47/SF November 2015 Class C Casa Vegas Street 28,000 SF - $5,500,000 95 $194.15/SF August 2015 Class C AIRPORT Wigwam Parkway 215 60,000 - $20,500,000 $341.67/SF February 2015 SOUTHWEST HENDERSON Class A Horizon Ridge Medical Corporate 28,000 SF - $4,420,000 $155.94/SF October 2014 Class C Significant Lease Activity Property Name Lease Date Lease Term Size Lease Rate Tenant MacFarlane Medical Center May 2015 120 months 13,000 SF $1.55 NNN Physicians Nevada Cancer Institute Campus Mar 2015 91 months 8,000 SF $2.40 MG Non-Medical The Parkway Mar 2015 132 months 20,000 SF $0.93 NNN Laboratory Thomas & Mack Medical Plaza Dec 2014 84 months 15,000 SF $2.97 NNN Physicians The Parkway Dec 2014 72 months 6,000 SF $1.99 NNN Prosthetics 33 Las Vegas Research & Forecast Report Q4 2015 Economic Review Colliers International

Market Comparisons - Las Vegas Medical Office Market TYPE TOTAL INVENTORY SF DIRECT VACANT SF DIRECT VACANCY RATE SUBLEASE VACANT SF TOTAL VACANT SF VACANCY RATE CURRENT QUARTER VACANCY RATE PRIOR QUARTER NET ABSORPTION CURRENT QTR SF NET ABSORPTION YTD SF COMPLETIONS CURRENT QTR SF COMPLETIONS YTD SF UNDER CONSTRUCTION SF PLANNED CONSTRUCTION SF WEIGHTED AVG ASKING RENTAL RATE AIRPORT SUBMARKET A - - n/a - - n/a n/a - - - - - - $- B - - n/a - - n/a n/a - - - - - - $- C 38,000 12,690 33.4% - 12,690 33.4% 33.4% - (1,790) - - - - $1.97 Total 38,000 12,690 33.4% - 12,690 33.4% 33.4% - (1,790) - - - - $1.97 DOWNTOWN SUBMARKET A 65,000-0.0% - - 0.0% 0.0% - - - - - - $- B 227,301 80,471 35.4% - 80,471 35.4% 13.6% 3,780 (49,892) - - - - $1.98 C 75,131 5,018 6.7% - 5,018 6.7% 6.7% - 4,982 - - - - $1.74 Total 367,432 85,489 23.3% - 85,489 23.3% 9.7% 3,780 (44,910) - - - - $1.97 EAST LAS VEGAS SUBMARKET A - - n/a - - n/a n/a - - - - - - $- B 669,264 154,696 23.1% 2,000 156,696 23.4% 23.3% (1,015) (3,292) - - - - $2.12 C 629,240 97,319 15.5% - 97,319 15.5% 16.9% 4,121 3,430 - - - - $1.64 Total 1,298,504 252,015 19.4% 2,000 254,015 19.6% 20.2% 3,106 138 - - - - $1.93 HENDERSON SUBMARKET A 421,834 52,911 12.5% - 52,911 12.5% 13.5% 4,236 31,079 - - - 150,000 $2.96 B 309,703 57,010 18.4% 2,515 59,525 19.2% 18.6% -1,836 29,839 - - - - $2.11 C 588,808 42,718 7.3% - 42,718 7.3% 7.1% -808 (894) - - - - $2.04 Total 1,320,345 152,639 11.6% 2,515 155,154 11.8% 11.9% 1,592 60,024 - - - 150,000 $2.39 NORTH LAS VEGAS SUBMARKET A - - n/a - - n/a n/a - - - - - - $- B 43,921 5,800 13.2% - 5,800 13.2% 13.2% - 3,413 - - - - $2.15 C 148,668 21,900 14.7% - 21,900 14.7% 12.0% (4,000) (4,000) - - - - $2.04 Total 192,589 27,700 14.4% - 27,700 14.4% 12.3% (4,000) (587) - - - - $2.06 NORTHWEST SUBMARKET A 807,173 158,488 19.6% - 158,488 19.6% 19.8% 1,596 37,432 - - - 80,251 $2.55 B 1,031,717 125,242 12.1% - 125,242 12.1% 10.5% (16,981) (85,840) - - - - $2.37 C 202,434 10,353 5.1% - 10,353 5.1% 3.2% (3,837) (2,483) - - - - $1.67 Total 2,041,324 294,083 14.4% - 294,083 14.4% 13.5% (19,222) (50,891) - - - 80,251 $2.44 SOUTHWEST SUBMARKET A 115,300 47,744 41.4% - 47,744 41.4% 41.4% - 7,800 - - - - $2.30 B 380,926 184,277 48.4% 4,440 188,717 49.5% 45.9% (13,864) (11,252) - - - 131,680 $2.36 C 275,170 54,724 19.9% - 54,724 19.9% 23.3% 8,026 15,511-16,000 - - $2.01 Total 771,396 286,745 37.2% 4,440 291,185 37.7% 37.2% (5,838) 12,059-16,000-131,680 $2.28 WEST CENTRAL SUBMARKET A - - n/a - - n/a n/a - - - - - - $- B 291,027 21,290 7.3% - 21,290 7.3% 7.3% - 18,796 - - - - $2.35 C 867,706 124,537 14.4% - 124,537 14.4% 15.0% (1,277) 74,087 - - - - $1.71 Total 1,158,733 145,827 12.6% - 145,827 12.6% 13.1% (1,277) 92,883 - - - - $1.80 MARKET TOTAL A 1,409,307 259,143 18.4% - 259,143 18.4% 18.8% 5,832 76,311 - - - 230,251 $2.59 B 2,953,859 628,786 21.3% 8,955 637,741 21.6% 18.8% (29,916) (98,228) - - - 131,680 $2.23 C 2,825,157 369,259 13.1% - 369,259 13.1% 13.6% 2,225 88,843-16,000 - - $1.80 Total 7,188,323 1,257,188 17.5% 8,955 1,266,143 17.6% 16.8% (21,859) 66,926-16,000-361,931 $2.18 QUARTERLY COMPARISON AND TOTALS Q4-15 7,188,323 1,257,188 17.5% 8,955 1,266,143 17.6% 16.8% (21,859) 66,926-16,000-361,931 $2.18 Q3-15 7,188,323 1,181,884 16.4% 22,436 1,204,320 16.8% 16.6% (6,806) 142,230-16,000-361,931 $2.18 Q2-15 7,188,323 1,175,078 16.3% 20,245 1,195,323 16.6% 17.4% 73,923 149,036 16,000 16,000-131,680 $2.18 Q1-15 7,172,323 1,233,001 17.2% 15,002 1,248,003 17.4% 18.4% 75,113 75,113 - - - 131,680 $2.16 Q4-14 7,172,323 1,308,114 18.2% 15,002 1,323,116 18.4% 19.0% 37,975 (94,283) - - - 131,680 $2.16 Q3-14 7,172,323 1,346,089 18.8% 15,002 1,361,091 19.0% 17.5% (101,664) (132,258) - - - - $2.17 Q2-14 7,172,323 1,244,425 17.4% 12,611 1,257,036 17.5% 16.6% (61,189) (30,594) - - - - $2.17 34 Las Vegas Research & Forecast Report Q4 2015 Economic Review Colliers International

Research & Forecast Report LAS VEGAS HOTEL Q4 2015 A Strong Finish, and a Strong Foundation > > Visitor volume may hit a new record in 2015 AIR Passengers CONVENTION Attendance RevPAR > > Gaming revenue not so much > > Room inventory should remain static in 2016, but expansion is coming in 2017 +6.4% +12.6 +32.9% Q4 While Southern Nevada s hospitality market not only had a recordbreaking year in 2015 for visitor volume, but, according to priceline. com, leads the nation in advance bookings for 2016. Visitor volume in the first eleven months of 2015 is one million visitors ahead of visitor volume at that point in 2014, putting Southern Nevada on track to best 2014 s total visitor volume. Room occupancy continued to be strong, with both average daily room rate (ADR) and revenue per available room (RevPAR) higher this year than last. Gaming revenue, unfortunately, continued to disappoint, showing almost no growth year-over-year. Market Indicators Relative to prior period Market Q3 2015 Market Q4 2015* Room Inventory Room Occupancy Average Daily Rate Revenue Per Available Room *Projected Revenue Per Available Room (RevPar) $120.00 $100.00 $80.00 $60.00 $40.00 Summary Statistics Q4 2015 Las Vegas Market Q4-2014 Q3-2015 Q4-2015 Room Inventory 150,777 147,587 147,587 Room Occupancy 83.1% 89.9% 92.8% Average Daily Rate $113.55 $112.31 $135.62 Revenue Per Available Room $94.69 $101.00 $125.86 $20.00 $0.00 3 Q 2013 4 Q 2013 1 Q 2014 2 Q 2014 3 Q 2014 4 Q 2014 1 Q 2015 2 Q 2015 3 Q 2015

Gaming revenue, as mentioned above, is down slightly year-to-date in 2015 compared to 2014. In May 2015, gaming revenue had shown improvement, and there was hope that measure of the hospitality market would finally begin a strong recovery. Unfortunately, a strong May was followed by a weak June. Revenue numbers since have shown improvement, and put 2015 on track to match or nearly match 2014. 2014 gaming revenue was down from 2013, though, meaning the trend is not our friend in this case. Fortunately, visitor spending in Southern Nevada is up overall. Resorts have been quick to adapt to this new demand model, and the hospitality industry has reaped the rewards. Visitor Volume 11,200,000 11,000,000 10,800,000 10,600,000 10,400,000 10,200,000 10,000,000 9,800,000 9,600,000 9,400,000 Room inventory remained static in the fourth quarter of 2015, and no new closures are planned for 2016. New completions of rooms are not expected until the Genting Group s Resorts World Las Vegas project is completed in 2017, which will increase room inventory by 3,500 rooms. 9,200,000 9,000,000 3 Q 2013 4 Q 2013 1 Q 2014 2 Q 2014 3 Q 2014 4 Q 2014 1 Q 2015 2 Q 2015 3 Q 2015 While Southern Nevada s previous hospitality boom came as a result of the development of new resorts, starting with the Mirage in 1989, the current recovery appears to be driven by reinvention, redevelopment and diversification of the entertainment landscape in Southern Nevada. Recent non-hospitality introductions to Las Vegas include the LINQ retail district and High Roller attraction, two new zip-line attractions on the Strip and in Downtown, new retail fronting the Treasure Island and the Rock N Rio festival. 2016 will bring the 20,000 seat MGM Resorts International Arena behind New York-New York and Monte Carlo, a $75 million renovation of Caesars Palace s original Roman Tower, a new 5,000-seat theatre at the Monte Carlo, a $47 million renovation of the Thomas & Mack Center, Topgolf International s fourstory golf entertainment complex at the MGM Grand, a 415,085 square foot IKEA store along the I-215 Beltway, a $23 million renovation and redevelopment of the Boulevard Mall. The LVCVA is currently undertaking a major expansion of the convention center to keep Southern Nevada at the forefront of convention destinations in the United States. In all, we expect that approximately $4.7 billion will be spent on Southern Nevada s hospitality market between 2014 and 2016, before another $4 billion is spent developing the first phase of Resorts World Las Vegas in 2017. Sales vs. Price Per Unit 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 $0 4 Q 2013 1 Q 2014 2 Q 20143 Q 20144 Q 20141 Q 2015 2 Q 20153 Q 20154 Q 2015 Sales (Units) Average Price Per Unit $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 Market Health Data Point 2015 YTD* 2014 2013 2012 2011 Visitor Volume (Millions) 35.7 41.6 39.9 39.7 38.9 Room Occupancy 88.8% 86.8% 84.3% 84.4% 83.8% ADR $120.92 $116.48 $110.64 $108.02 $104.97 RevPAR $107.32 $101.05 $93.27 $91.17 $87.96 Convention Attendance (Millions) 4.92 5.17 5.11 4.93 4.87 Passengers McCarran Int l (Millions) 38.0 42.9 41.8 41.7 41.5 Gaming Revenue (Clark County, Billions) $7.9 $9.6 $10.0 $9.4 $9.2 Gaming Revenue ( Strip, Billions) $5.2 $6.4 $6.5 $6.2 $6.1 Data from Las Vegas Convention & Visitors Authority * Data from January to October 36 Las Vegas Research & Forecast Report Q4 2015 Economic Review Colliers International

A total of 1,497 rooms sold in Southern Nevada in the fourth quarter of 2015, including the Las Vegas Club in Downtown and the Tropicana Las Vegas on the Strip. So far in 2015, 7,842 rooms have sold in Southern Nevada, with total sales volume of $1.2 billion dollars. The average sales price per room in 2015 was $152,521, down from $241,000 per room in 2014. While inventory growth took 2015 off, it will return in 2017 and might spark a new boom for Southern Nevada. At least, that s the hope. Given high levels of visitor volume, it makes sense for moderate inventory expansion to take place. Hospitality Sales* Year Volume Units Sold Price/Unit 2015 YTD ** $1,196 MM 7,842 $153,000 2014 $1,864 MM 7,749 $241,000 2013 $55 MM 1,129 $49,000 2012 $121 MM 2,613 $46,000 2011 $3,009 MM 7,369 $408,000 2010 $858 MM 8,883 $97,000 2009 $1,226 MM 4,913 $249,000 2008 $86 MM 889 $97,000 * Only includes properties with 100 or more units, arm s-length sales ** Data from January to November the current recovery appears to be driven by reinvention, redevelopment and diversification of the entertainment landscape - John Stater, Research & GIS Manager 37 Las Vegas Research & Forecast Report Q4 2015 Economic Review Colliers International

215 Significant Hotel Sale Activity NORTHWEST NORTH LAS VEGAS Las Vegas Club Casino 95 Downtown - $40,000,000 410 Units - $98,000/Unit August 2015 15 Casino Hotel Renaissance Las Vegas Hotel Resort Corridor - $111,000,000 SUMMERLIN WEST CENTRAL DOWNTOWN RESORT CORRIDOR EAST LAS VEGAS 548 Units - $203,000/Unit July 2015 Full Service 95 Hooters Casino Hotel Resort Corridor - $54,000,000 THE STRIP 696 Units - $77,000/Unit May 2015 Casino Hotel AIRPORT 215 Tropicana Las Vegas Strip - $360,000,000 SOUTHWEST HENDERSON 1,497 Units - $240,000/Unit December 2015 Casino Hotel SOUTH LAS VEGAS Crestwood Suites - Las Vegas South Las Vegas - $6,100,000 156 Units - $39,000/Unit May 2015 Limited Service Sale Activity Continued Property Name Sale Date Units Price Price/Unit Submarket Property Type Crestwood Suites-Flamingo May 2015 150 $6,000,000 $39,000 East Las Vegas Limited Service Hyatt Place-Las Vegas Feb 2015 202 $19,000,000 $94,000 Resort Corridor Full Service Townplace Suites Feb 2015 228 $20,000,000 $88,000 Henderson Limited Service Riviera Hotel * Feb 2015 2,100 $182,500,000 $87,000 Strip Casino Hotel Hyatt Place-Las Vegas Feb 2015 202 $18,300,000 $91,000 Resort Corridor Full Service * Indicates a redevelopment site 38 Las Vegas Research & Forecast Report Q4 2015 Economic Review Colliers International

Market Comparisons - Las Vegas Hospitality Market TYPE TOTAL INVENTORY UNITS SOLD SALES VOLUME PRICE/UNIT COMPLETIONS THIS QUARTER COMPLETIONS YTD PLANNED DOWNTOWN CAS 7,527 - $0 n/a - (410) - FS - - $0 n/a - - - LS 938 - $0 n/a - (74) - Total 8,465 - $0 n/a - (484) - LAS VEGAS STRIP CAS 82,349 1,497 $360,000,000 $240,481 - (2,075) 3,500 FS 5,817 - $0 n/a - - - LS 581 - $0 n/a - - - Total 88,747 1,497 $360,000,000 $240,481 - (2,075) 3,500 RESORT CORRIDOR CAS 11,267 - $0 n/a - (202) - FS 5,091 - $0 n/a - - - LS 6,285 - $0 n/a - - - Total 22,643 - $0 #DIV/0! - (202) - AIRPORT CAS - - $0 n/a - - - FS - - $0 n/a - - - LS 841 - $0 n/a - - - Total 841 - $0 n/a - - - EAST LAS VEGAS SUBMARKET CAS 1,914 - $0 n/a - - - FS - - $0 n/a - - - LS 2,570 - $0 n/a - (839) - Total 4,484 - $0 #DIV/0! - (839) - HENDERSON SUBMARKET CAS 2,281 - $0 n/a - - - FS 868 - $0 n/a - - - LS 1,480 - $0 n/a - - - Total 4,629 - $0 n/a - - - NORTH LAS VEGAS SUBMARKET CAS 1,030 - $0 n/a - - - FS - - $0 n/a - - - LS 1,611 - $0 n/a - - - Total 2,641 - $0 n/a - - - SOUTH LAS VEGAS SUBMARKET CAS 2,853 - $0 n/a - - - FS 2,704 - $0 n/a - - - LS 1,206 - $0 n/a - - 134 Total 6,763 - $0 #DIV/0! - - 134 SUMMERLIN SUBMARKET CAS 1,789 - $0 n/a - - - FS 123 - $0 n/a - - - LS 857 - $0 n/a - - - Total 2,769 - $0 n/a - - - WEST CENTRAL SUBMARKET CAS 3,417 - $0 n/a - - - FS - - $0 n/a - - - LS 2,188 - $0 n/a - - - Total 5,605 - $0 n/a - - - MARKET TOTAL CAS 114,427 1,497 $360,000,000 $240,481 - (2,687) 3,500 FS 14,603 - $0 n/a - - - LS 18,557 - $0 n/a - (913) 134 Total 147,587 1,497 $360,000,000 $240,481 - (3,600) 3,634 QUARTERLY COMPARISON AND TOTALS Q4-15 147,587 1,497 $360,000,000 $240,481 0-3,600 3,634 Q3-15 147,587 958 $151,000,000 $157,620-410 -3,600 3,634 Q2-15 147,997 2,499 $442,001,950 $176,872-2,988-3,190 4,169 Q1-15 150,985 2,888 $243,075,470 $84,167-202 -202 4,124 Q4-14 151,187 128 $5,375,000 $41,992 0 1,955 4,124 Q3-14 151,187 590 $48,962,292 $82,987 1,767 1,955 4,124 39 Las Vegas Research & Forecast Report Q4 2015 Economic Review Colliers International

Research & Forecast Report LAS VEGAS LAND Q4 2015 The Calm Before the Storm > > Land sales were down in 2015 compared to 2014 > > Development continues to be strong for industrial and multifamily properties > > Lower demand for land decreased the price per square foot in the fourth quarter of 2015 COMMERCIAL Forward Supply +19.2 Percent RESIDENTIAL Permits +7.5 Percent COMMERCIAL Permits -10.0 Percent The fourth quarter of 2015 was an improvement on the third quarter in terms of sales volume and, to a small extent, the acreage sold, though fewer sales occurred. Sales volume in the fourth quarter totaled $162.3 million in 79 sales totaling 467.87 acres at an average price of $7.96 per square foot (psf). 2015 as a whole saw land sales decline after 2014 improved on 2013 s performance. Sales volume in 2015 totaled $568.2 million in 324 sales totaling 2,159.24 acres at an average price of $6.04 per square foot (psf). Market Indicators Relative to prior period Market Q4 2015 Market Q1 2016* NO. SALES ACREAGE SOLD SALES VOLUME Industrial occupancy increased in 2015 to 94.5 percent, a 4.0 percentage point increase over 2014. While industrial developments in 2014 were primarily of build-to-suit properties, development in 2015 shifted to speculative properties. A total of 1.9 million square feet of industrial space was completed in 2015, and an additional 9.3 million square feet of industrial space was either under construction or planned on 629.1 acres of land. During 2015, 272.62 acres of industrial land was sold, with total sales volume of $51.8 million. The average sales price of industrial land was $4.36 psf, a decrease from one year ago. PRICE PER SQUARE FOOT *Projected Land Sales Activity 1,000 900 800 $14.00 $12.00 Commercial occupancy increased in 2015 to 86.9 percent, 0.5 percentage points higher than in 2014. Demand for office and retail product, while still not as strong as for industrial space, has been positive in 2015. Speculative construction of office and anchored retail projects increased dramatically in 2014, but ebbed in 2015 and should remain light in 2016. Completions of commercial product stood at 567,636 square feet in 2015, on 69.63 acres. An additional 2.6 million square feet of commercial product is under construction or planned on 628.7 acres. Hotel occupancy in 2015 averaged 88.8 percent. Hotel occupancy has increased in 2015 compared to 2014, when it averaged 86.8 percent. Over 3,600 new rooms are under construction or planned in Southern Nevada on more than 20 acres. During 2015, 446.96 acres of commercial land was sold. Total commercial land sales volume was $165.8 million. The average sales price of commercial land was $8.51 psf, an increase of $0.78 psf from one year ago. 700 600 500 400 300 200 100 0 Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 ACREAGE SOLD PRICE PER SQ. FT. $10.00 $8.00 $6.00 $4.00 $2.00 $0.00