CHICAGO CBD MARKET OVERVIEW & SNAPSHOTS

CHICAGO CBD MARKET OVERVIEW & SNAPSHOTS FIRST QUARTER 2017 RESEARCH 181 WEST MADISON STREET, SUITE 4700, CHICAGO, ILLINOIS 60602 (312) 487-5977 MBRES.COM 1

FIRST QUARTER 2017 CHICAGO MARKET OVERVIEW TABLE OF CONTENTS SECTION ONE CHICAGO ECONOMY 01 Economic Analysis SECTION TWO CHICAGO CENTRAL BUSINESS DISTRICT 02 Chicago CBD Executive Summary SUPPLY 03 New Development 04 Sublease Space 05 Large Blocks of Direct Availability DEMAND 06 Vacancy Rates 07 Large Deals 08 Absorption FEATURES 09 Lease Comparables 10 Investment Sales 11 Forecast 12 Market Statistics SECTION THREE CENTRAL BUSINESS DISTRICT SNAPSHOTS The Chicago Market Overview is published quarterly by MB Real Estate Services Inc. To obtain additional copies or for further information, please contact: Caitlin Ritter, Research Manager 181 West Madison Street, Suite 4700 Chicago, Illinois 60602 (312) 487-5977 critter@mbres.com CBD SUBMARKET SNAPSHOTS 13 Central Business District Map 14 Central Loop 15 East Loop 16 North Michigan Avenue 17 River North 18 West Loop 19 River West SECTION FOUR ADDITIONAL INFORMATION 20 Glossary 21 About MB Real Estate www.mbres.com

SECTION ONE CHICAGO ECONOMY ECONOMIC ANALYSIS Total nonfarm payroll employment increased nationally by 560,000 in the first quarter of 2017, bringing the unemployment rate down to 4.5 percent overall at the end of March. According to the Bureau of Labor Statistics, first quarter job gains occurred primarily in professional and business services. According to the Illinois Department of Employment Security s (IDES) latest figures, the February 2017 unemployment rate for Chicago s total MSA, including parts of Northwest Indiana and Southern Wisconsin, was 5.3 percent, down from 6.5 percent in February 2016. Chicago s total MSA nonfarm payroll employment increased by 40,500 during the same time period, with gains occurring primarily in government and the financial sector. CHICAGO ECONOMIC ANALYSIS In March, the Federal Reserve increased interest rates for the second time in three months. The 25 basis point increase, from a range of 0.5 to 0.75 percent to a range of 0.75 to 1.0 percent, was widely expected. Two additional quarter point interest rate increases are projected for 2017. 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% HISTORIC UNEMPLOYMENT RATE 0.0% 2012 2013 2014 2015 2016 2017 Chicago MSA Unemployment Rate National Unemployment Rate CHICAGO MSA EMPLOYMENT CHANGE BY INDUSTRY (FEBRUARY 2016 - FEBRUARY 2017) Government 11,900 Financial activities 11,200 Education and health services 9,500 Construction 7,000 Leisure and hospitality 3,000 Trade, transportation, and utilities 2,000 Information 800 Other services (500) Manufacturing (700) Professional and business services (3,700) Source: Bureau of Labor Statistics 1

SECTION TWO CENTRAL BUSINESS DISTRICT EXECUTIVE SUMMARY The first quarter of 2017 was an exciting start for Chicago s CBD office market, which saw the vacancy rate at an exceptionally low 11.1 percent and 733,832 square feet of positive absorption. Tenants are moving into two of the first new office towers to have been developed since 2009, 444 W. Lake and 150 N. Riverside. The resulting shadow inventory is expected to cause vacancy rates to rise slightly by the end of the year, but increasing demand has left little doubt that Chicago s downtown office market will continue to grow. Key Indicators: CHICAGO ECONOMIC ANALYSIS Large deals signed in the first quarter by rapidly expanding businesses indicate that Chicago s CBD is well positioned to absorb the additional 2.2 million square feet of office space that is currently under construction. Chicago s CBD continues to attract corporations from the suburbs and other cities. Nielsen announced that it would be consolidating its suburban operations to its existing office in the CBD, which will expand by 144,000 square feet. Additionally, Kellogg announced that they opened a new office for about 50 employees in its global growth and IT departments at The Merchandise Mart, and Hickory Farms announced that it will relocate its headquarters from Toledo, Ohio to a 7,300 square foot office at 311 S. Wacker. Howard Hughes Corporation and Riverside Investment & Development released plans for a new 1.35 million square foot office tower at 110 N. Wacker, the site of GGP s current headquarters. The sublease market decreased by 111,212 square feet in the first quarter of 2017, bringing the total amount of available sublease space down to 3,944,077 square feet. Chicago s investment sales market started the year with another slow quarter. There were only four sales transactions completed with a total of 1.7 million square feet and $549 million in total sales volume. MBRE will no longer track the South Loop as a separate submarket. All buildings that were tracked as part of the South Loop submarket have been consolidated into the Central or East Loop submarkets. CBD VACANCY AND FIRST QUARTER ABSORPTION SUMMARY 1Q2017 A Change from 3Q16 B Change from 3Q16 C Change from 3Q16 Total Change from 3Q16 Central Loop 10.4% 2.0% 12.3% -0.2% 9.8% 0.1% 11.1% 0.7% East Loop 8.7% 0.1% 14.0% -1.1% 12.5% -0.2% 12.6% -0.5% N. Michigan Ave. 19.3% -1.1% 8.6% 0.1% 10.2% -1.8% 12.4% -0.9% River North 5.1% -0.2% 10.8% 0.2% 12.4% -0.5% 9.8% -0.2% West Loop 9.6% -0.1% 13.7% -0.6% 11.1% -0.1% 10.8% -0.3% River West 1.0% 0.0% - - 9.8% 0.1% 7.1% 0.3% Chicago CBD Total 9.9% 0.1% 12.6% -0.4% 11.2% -0.4% 11.1% -0.2% Net Absorption 1Q2017 A B C Total Central Loop (138,965) 24,364 24,111 (90,490) East Loop (5,034) 109,954 9,233 114,153 N. Michigan Ave. 42,323 (2,642) 70,049 109,730 River North 9,201 (21,101) 27,336 15,436 West Loop 533,669 70,713 6,020 610,402 River West 0 - (25,399) (25,399) Chicago CBD Total 441,194 181,288 111,350 733,832 Numbers in parentheses are negative 2

NEW DEVELOPMENT TENANTS MOVE INTO NEW WEST LOOP OFFICE TOWERS Tenants are moving into two of the first new office towers to have been developed since 2009, 444 W. Lake and 150 N. Riverside. These developments will add a combined 2.3 million square feet to Chicago s office market. There are four additional developments currently under construction. Fulton West, Sterling Bay s development under construction at 1330 W. Fulton in River West, is expected to be completed in July of 2017. Sterling Bay is also building 1045 W. Randolph, McDonald s new corporate headquarters, which is expected to be completed in July of 2018. John Buck s new development at 151 N. Franklin and White Oak Realty s new development at 625 W. Adams are also expected to be completed in 2018. Howard Hughes Corporation and Riverside Investment & Development released plans for a new 1.35 million square foot office tower at 110 N. Wacker, the site of GGP s current headquarters. The Chicago Plan Commission approved the plans in March and construction is expected to begin in October of this year. 2000-2017 INVENTORY ADDITIONS % Leased (Avg) 2000-5 Properties 2,870,576 sf 95.8% 2001-2 Properties 904,436 sf 86.9% 2002-2 Properties 2,236,364 sf 94.6% 2003-0 Properties 0 sf 0.0% 2004-1 Property 1,300,000 sf 100.0% 2005-2 Properties 2,500,143 sf 97.4% 2006-2 Properties 1,320,498 sf 96.9% 2007-0 Properties 0 sf 0.0% 2008-2 Properties 728,254 sf 70.6% 2009-3 Properties 3,652,913 sf 81.4% 2010-1 Expansion 933,710 sf 92.9% 2011-0 Properties 0 sf 0.0% 2012-0 Properties 0 sf 0.0% 2013-0 Properties 0 sf 0.0% 2014-0 Properties 0 sf 0.0% 2015-1 Property 531,190 sf 93.5% 2016-1 Property 1,073,100 sf 78.7% 2017-1 Property 1,229,064 sf 81.7% Total - 23 Properties UNDER CONSTRUCTION/ANNOUNCED 19,280,248 sf % Leased 151 N. Franklin 820,000 sf 48.6% 1045 W. Randolph 608,000 sf 92.8% 625 W. Adams 443,645 sf 2.0% 1330 W. Fulton 287,928 sf 47.7% Total 2000-2017 INVENTORY ADDITIONS 2,159,573 sf CENTRAL BUSINESS DISTRICT : SUPPLY Delivered (2000-2009) Delivered (2010-2016) Delivered (2017) Total Under Construction/Announced 15,513,184 sf 2,538,000 sf 1,229,064 sf 19,280,248 sf 2,159,573 sf NEW DELIVERIES WILL CONTRIBUTE OVER FOUR MILLION TO INVENTORY BY 2018 4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 0 (500,000) (1,000,000) (1,500,000) 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 New Construction Delivery (square feet) Absorption (square feet) Rate % 20% 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% 3

SUBLEASE SPACE SUBLEASE MARKET CONTRACTS The sublease market decreased by 111,212 square feet in the first quarter of 2017, bringing the total amount of available sublease space down to 3,944,077 square feet. This is the second quarter in a row that the sublease market inventory has contracted after reaching a seven year high in the third quarter of 2016. The only large block of sublease space new to the market in the first quarter of 2017 is Papyrus-Recycled Greetings 58,073 square feet at 111 N. Canal. Three large blocks of sublease space were taken off the market in the first quarter. Citadel and Sprout Social s spaces at 131 S. Dearborn reached the end of their lease term and are now available as direct space. Tressler s 51,137 square feet of sublease space at 233 S. Wacker was also taken off the market. CENTRAL BUSINESS DISTRICT : SUPPLY 4,500,000 4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 0 2,404,109 3,158,562 4,201,801 3,576,846 2,897,711 3,214,365 3,060,757 3,161,152 3,351,486 4,055,289 3,944,077 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 LARGE BLOCKS (MORE THAN 50,000 SQUARE FEET) OF SUBLEASE SPACE CURRENTLY AVAILABLE CLASS A Building Address Size Occupancy Expiration Floor(s) Sublandlord 71 S. Wacker 214,069 June 2017 Feburary 2020 10-17 Hyatt Hotels Corporation 233 S. Wacker 80,383 Vacant September 2019 46-47 Chubb 200 W. Madison 68,605 Vacant September 2018 2-4 Harrington College of Design 123 N. Wacker 67,798 March 2017 September 2022 24-27 Morton Salt 161 N. Clark 61,326 Vacant October 2019 6-7 GE Capital Rail Services 500 W. Monroe 57,176 Negotiable November 2027 12-13 GE Healthcare Total - 6 Spaces 549,357 CLASS B Building Address Size Occupancy Expiration Floor(s) Sublandlord 225 W. Randolph 265,244 Vacant December 2022 22-25, 27 AT&T 225 W. Randolph 156,364 Negotiable November 2022 17-19 AT&T 141 W. Jackson 130,426 120 Days May 2027 2-6, 9 CME Group 222 W. Merchandise Mart 113,260 30 Days June 2028 17 Motorola 1 N. Dearborn 105,151 60 Days December 2025 12-13 Pierce & Associates 225 W. Randolph 53,110 Vacant November 2022 28-29 Avant Credit 111 N. Canal 58,073 June 2017 October 2018 7 Papyrus-Recycled Greetings 435-445 N. Michigan 66,270 30 Days June 2018 2 Chicago Tribune Total - 8 Spaces 947,898 4

LARGE BLOCKS OF DIRECT AVAILABILITY INCREASE IN LARGE BLOCKS OF DIRECT VACANCY The largest block of directly available space is still the 432,709 square feet at 625 W. Adams, which has been under construction since May of 2016, but has yet to pre-lease any of its space. The number of direct blocks of available space increased to 79 in the first quarter of 2017 from 75 in the first quarter of 2016. There is a total of 13 direct blocks larger than 200,000 square feet, up from 10 a year ago. Of the roughly 10 million square feet of available direct large blocks, about 4.8 million are currently vacant and about 5.2 million have future availability dates. MBRE has identified at least 54 tenants actively seeking 50,000 square feet or more in the CBD. CLASS A Building Address Size Availability Submarket 625 W. Adams 432,709 April 2018 West Loop 200 E. Randolph 354,127 August 2018 East Loop 203 N. LaSalle 277,349 Vacant Central Loop 151 N. Franklin 257,016 June 2018 West Loop 71 S. Wacker 246,872 March 2020 West Loop 227 W. Monroe 188,346 June 2017 West Loop 515 N. State 166,082 Vacant North Michigan Avenue 233 S. Wacker 165,153 Vacant West Loop 500 W. Madison 155,807 January 2018 West Loop 200 E. Randolph 131,268 Vacant East Loop 550 W. Jackson 130,413 July 2017 West Loop 30 S. Wacker 129,216 June 2017 West Loop 111 S. Wacker 112,052 January 2018 West Loop 1 S. Dearborn 106,624 January 2020 Central Loop 444 W. Lake 106,292 Vacant West Loop 222 W. Adams 104,057 September 2017 West Loop 200 W. Madison 96,395 September 2018 Central Loop 233 S. Wacker 91,807 Vacant West Loop 71 S. Wacker 91,414 July 2017 West Loop 131 S. Dearborn 91,392 July 2017 Central Loop 440 S. LaSalle 89,045 Vacant South Loop 123 N. Wacker 84,694 February 2018 West Loop 35 W. Wacker 75,000 Vacant Central Loop 191 N. Wacker 70,794 Vacant West Loop 151 N. Franklin 70,450 June 2018 West Loop 1 N. Wacker 68,922 Vacant West Loop 131 S. Dearborn 64,311 Vacant Central Loop 131 S. Dearborn 64,311 November 2017 Central Loop 71 S. Wacker 63,317 October 2017 West Loop 161 N. Clark 61,326 November 2019 Central Loop 233 S. Wacker 60,992 Vacant West Loop 20 W. Kinzie 58,805 Vacant River North 150 N. Riverside 57,056 Vacant West Loop 111 S. Wacker 55,644 January 2018 West Loop 77 W. Wacker 55,032 Vacant Central Loop 455 N. Cityfront Plaza 52,045 Vacant North Michigan Avenue 36 Blocks 4,486,135 CLASS B Building Address Size Availability Submarket 333 S. Wabash 366,506 June 2018 East Loop 300 S. Riverside 316,563 Vacant West Loop 125 S. Clark 289,141 Vacant Central Loop 2 N. LaSalle 241,265 Vacant Central Loop 175 W. Jackson 228,226 Vacant Central Loop 350 N. Orleans 217,822 Vacant River North 333 S. Wabash 209,432 June 2018 East Loop 222 N. LaSalle 165,866 June 2018 Central Loop 200 W. Monroe 158,698 January 2018 West Loop 1 N. Dearborn 156,612 Negotiable Central Loop 222 W. Merchandise Mart 154,295 September 2018 River North 233 N. Michigan 154,082 Negotiable East Loop 141 W. Jackson 144,404 Vacant Central Loop 175 W. Jackson 135,369 July 2017 Central Loop 333 S. Wabash 130,895 June 2018 East Loop 120 S. Riverside 102,072 April 2018 West Loop 130 E. Randolph 99,064 Vacant East Loop 2 N. LaSalle 84,135 Vacant Central Loop 141 W. Jackson 82,268 Vacant Central Loop 330 N. Green 76,432 Vacant River West 303 E. Wacker 73,798 Vacant East Loop 55 E. Monroe 73,145 Vacant East Loop 100 S. Wacker 72,782 Vacant West Loop 200 W. Jackson 70,193 Vacant West Loop 175 W. Jackson 69,395 January 2018 Central Loop 330 N. Wabash 68,564 July 2017 North Michigan Avenue 120 N. Racine 65,716 Vacant River West 33 W. Monroe 64,476 Vacant Central Loop 120 S. LaSalle 62,557 Vacant Central Loop 111 N. Canal 58,073 Negotiable West Loop 1 S. Wacker 57,054 Vacant West Loop 222 W. Merchandise Mart 55,708 Vacant River North 1 N. Dearborn 52,373 Vacant Central Loop 33 Blocks 4,356,981 CLASS C Building Address Size Availability Submarket 311 W. Monroe 363,204 Vacant West Loop 401 S. State 110,898 Vacant East Loop 1 N. State 98,212 Vacant East Loop 122 S. Michigan 91,636 November 2017 East Loop 122 S. Michigan 79,045 November 2017 East Loop 435-445 N. Michigan 69,943 Negotiable North Michigan Avenue 20 N. Wacker 68,137 March 2018 West Loop 540 N. LaSalle 61,820 Vacant River North 1 N. State 52,569 October 2017 East Loop 1 N. State 50,023 Vacant East Loop 10 Blocks 1,045,487 CENTRAL BUSINESS DISTRICT : SUPPLY 5

VACANCY RATES CBD VACANCY RATES REMAIN LOW The total direct vacancy rate in the CBD decreased by 21 basis points from 11.35 percent at the end of the fourth quarter of 2016 to 11.14 percent at the end of the first quarter of 2017. The Class A vacancy rate increased by 10 basis points to 9.91 percent. The Class B vacancy rate decreased by 43 basis points in the first quarter, bringing the rate down to 12.57 percent. The Class C vacancy rate is 11.15 percent, a 39-basis point decrease from 2016 year-end. HISTORIC DIRECT VACANCY : RATES CONTINUE STEADY DECLINE 18% CENTRAL BUSINESS DISTRICT : DEMAND 16% 14% 12% 10% 8% 13.57% 14.08% 14.97% 16.56% 14.36% 11.67% 11.52% 15.32% 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 16.04% 15.41% 15.11% 14.54% 13.59% 12.03% 11.35% 11.14% HISTORIC YEAR-END DIRECT VACANCY MARKET BY CLASS : PATTERNS HOLD 20% 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Class A Class B Class C 6

LARGE DEALS RAPIDLY EXPANDING COMPANY SIGNS LARGE DEAL There were eight large new deals and 15 large renewal, expansion, and sublease deals signed in the first quarter of 2017. The largest new deal signed in the first quarter was a 394,000-square foot lease signed by Outcome Health (formerly ContextMedia) at 515 N. State. The rapidly growing company will be relocating from 330 N. Wabash, where it currently occupies approximately 66,000 square feet. Outcome Health s lease will bring 515 N. State s occupancy up to 95.2 percent after being less than 50 percent for the past two years. The largest renewal of the first quarter was for Sidley Austin s 575,000 square feet at 1 S. Dearborn. The renewal is a big win for the building, as Sidley Austin occupies 70 percent of the property. However, it was likely a disappointment for multiple developers that had been hoping to launch their new office developments by signing a deal with the large law firm. Nielsen jumped on the suburban migration bandwagon, announcing that they will be consolidating all of their suburban operations to their existing downtown office and expanding their current 71,000 square foot print at 200 W. Jackson to 215,000 square feet. CENTRAL BUSINESS DISTRICT : DEMAND LARGE LEASE TRANSACTIONS (OVER 15,000 SQUARE FEET) NEW Tenant Type Submarket Building Address Size Outcome Heath (formerly ContextMedia Inc.) New North Michigan Ave 515 N. State 394,000 The National Restaurant Association New West Loop 233 S. Wacker 50,852 Intersport New East Loop 303 E. Wacker 30,176 HUB Insurance New Central Loop 203 N. LaSalle 28,000 1WorldSync New West Loop 300 S. Riverside 22,247 Sikich New West Loop 200 W. Madison 22,146 The Climate Corporation New River West 1330 W. Fulton 21,315 Liquidus Marketing New West Loop 200 W. Jackson 17,392 Total - 8 Deals 586,128 RENEWAL/EXPANSION/SUBLEASE Tenant Type Submarket Building Address Size Sidley Austin LLP Ren Central Loop 1 S. Dearborn 574,812 Nielsen Ren/Exp West Loop 200 W. Jackson 215,000 PPM America, Inc. Ren/Exp West Loop 225 W. Wacker 100,671 The Warranty Group Ren/Cont Central Loop 175 W. Jackson 67,000 Grainger Ren West Loop 500 W. Madison 60,000 BDT Capital Partners Ren/Exp North Michigan Ave 401 N. Michigan 58,000 imanage Exp West Loop 540 W. Madison 48,307 ABN AMRO Clearing Exp Central Loop 175 W. Jackson 42,775 Burns & McDonnell Ren/Exp West Loop 200 W. Adams 36,409 Enova International Exp Central Loop 175 W. Jackson 34,926 Nitel Sublease River North 350 N. Orleans 32,115 Home Chef Sublease North Michigan Ave 400-410 N. Michigan 29,095 PayPal/Braintree Exp River North 222 W. Merchandise Mart 27,698 Signal Sublease Central Loop 222 N. LaSalle 26,282 BluePay Processing Sublease West Loop 500 W. Madison 18,377 Total - 15 Deals 1,371,467 7

ABSORPTION TENANTS MOVE INTO NEW DEVELOPMENTS There was a total of 733,832 square feet of positive absorption in the CBD in the first quarter of 2017, created primarily by tenants moving into the new developments at 444 W. Lake and 150 N. Riverside. Some of this positive absorption will be balanced out by negative absorption later in the year as these relocating tenants fully vacate their existing spaces. There was 138,965 square feet of negative Class A absorption in the Central Loop due to DLA Piper s move out of approximately 303,954 square feet at 203 N. LaSalle to relocate to the new office building at 444 W. Lake. This large amount of negative absorption was partially offset by 189,000 square feet of additional space occupied by J.P Morgan Chase at 10 S. Dearborn. The largest contributors to the positive Class B absorption were Clark Hill s occupation of 71,818 square feet at 130 E. Randolph and Conversant s occupation of 15,979 square feet at 101 N. Wacker. The largest contributor to the positive Class C absorption was the 68,082 square feet that Ann & Robert Lurie Children s Hospital moved into at 211 E. Chicago. HISTORIC ABSORPTION CENTRAL BUSINESS DISTRICT : DEMAND 3,000,000 2,500,000 2,000,000 2,144,094 2,566,896 1,888,648 1,500,000 1,275,048 1,305,274 1,000,000 500,000 913,519 472,780 720,110 733,832 0 (500,000) (1,000,000) (1,500,000) (936,680) (670,489) (74,794) (298,110) (136,763) (720,154) (509,999) 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 HISTORIC ABSORPTION BY SUBMARKET 4,000,000 3,000,000 2,000,000 1,000,000 0 (1,000,000) (2,000,000) 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Central Loop East Loop River North North Michigan Avenue South Loop West Loop River West 8

LEASE COMPARABLES RENTAL RATES STABILIZE The average initial net rent for new deals in the past year, across all classes, was $22.01 per square foot. Average renewal net rent across all classes was $20.47 per square foot. New and renewal rental rates all increased except for Class A renewals. Landlords may be offering better renewal rates to keep tenants from relocating to the shadow space created by new developments. The highest net asking rents for space at existing Class A properties currently on the market is $46 per square foot. The average estimated initial taxes and operating costs for leases signed over the past year was $17.17 for Class A properties, $14.35 for Class B properties, and $13.17 for Class C properties. AVERAGE LEASE TERMS ON NEW AND RENEWAL DEALS NEW DEALS AVERAGE NET INITIAL RATE AVERAGE TENANT IMPROVEMENT AVERAGE ABATEMENT (MONTHS) AVERAGE TERM (YEARS) A B C A B C A B C A B C 2Q2016-1Q2017 $24.64 $20.06 $19.46 $58.09 $51.48 $48.95 6.8 6.4 6.8 7.7 7.1 7.2 2Q2015-1Q2016 $24.48 $19.89 $16.34 $57.14 $50.19 $41.48 8.3 5.4 5.0 8.7 6.5 6.6 2Q2014-1Q2015 $21.74 $19.86 $16.20 $54.52 $52.23 $50.59 8.9 6.0 5.5 8.4 6.8 6.0 2Q2013-1Q2014 $18.82 $16.99 $15.15 $41.53 $37.11 $35.20 6.2 5.5 4.8 7.8 6.5 5.6 2Q2012-1Q2013 $19.91 $16.08 $14.34 $34.27 $29.96 $21.93 6.4 6.0 4.7 7.2 6.4 5.5 2Q2011-1Q2012 $19.95 $15.08 $13.33 $41.65 $32.08 $22.97 6.8 6.9 5.4 7.7 7.0 5.8 2Q2010-1Q2011 $20.11 $15.10 $11.14 $44.58 $26.16 $22.48 8.7 6.8 7.5 8.1 6.7 6.8 2Q2009-1Q2010 $19.79 $15.29 $11.97 $39.52 $26.87 $17.74 8.2 6.2 4.4 7.9 6.4 5.6 2Q2008-1Q2009 $22.23 $17.04 $13.85 $43.91 $38.87 $32.74 5.2 4.5 4.4 8.6 7.2 7.6 2Q2007-1Q2008 $19.40 $15.73 $12.25 $40.56 $38.87 $24.66 4.8 4.4 4.1 7.3 6.7 6.5 2Q2006-1Q2007 $18.12 $13.93 $15.39 $49.24 $38.58 $15.19 6.2 5.1 1.9 9.0 7.4 4.8 2Q2005-1Q2006 $18.09 $12.67 $10.25 $49.16 $38.58 $26.99 7.2 5.7 4.9 8.9 7.6 7.1 2Q2004-1Q2005 $16.67 $12.92 $10.05 $43.12 $42.82 $23.24 7.0 7.2 3.8 10.1 8.7 6.2 2Q2003-1Q2004 $17.22 $12.63 $9.43 $40.92 $36.90 $15.89 4.4 5.6 3.1 8.6 8.2 6.2 CENTRAL BUSINESS DISTRICT : FEATURES RENEWAL DEALS AVERAGE NET INITIAL RATE AVERAGE TENANT IMPROVEMENT AVERAGE ABATEMENT (MONTHS) AVERAGE TERM (YEARS) A B C A B C A B C A B C 2Q2016-1Q2017 $23.04 $18.60 $18.30 $30.39 $20.28 $16.69 4.4 4.1 2.3 5.9 5.1 5.0 2Q2015-1Q2016 $24.32 $18.40 $15.67 $25.31 $18.71 $17.34 4.7 3.8 2.6 6.6 5.2 3.9 2Q2014-1Q2015 $24.66 $18.49 $16.47 $38.14 $22.79 $48.83 5.2 6.1 7.5 6.6 6.2 4.8 2Q2013-1Q2014 $19.80 $16.35 $12.49 $24.84 $15.34 $9.36 4.4 5.1 3.0 6.0 5.8 3.8 2Q2012-1Q2013 $18.80 $15.41 $12.64 $16.00 $10.47 $9.74 5.1 3.1 2.6 6.5 4.5 4.0 2Q2011-1Q2012 $19.10 $14.02 $14.09 $14.16 $9.26 $10.70 4.3 4.1 4.1 5.2 4.2 4.6 2Q2010-1Q2011 $19.79 $15.24 $10.28 $18.89 $10.56 $7.37 5.8 4.3 5.7 6.1 4.6 4.5 2Q2009-1Q2010 $17.80 $15.71 $11.56 $20.47 $10.92 $7.04 6.5 3.4 3.3 6.3 5.1 4.5 2Q2008-1Q2009 $21.72 $16.64 $15.36 $22.32 $16.11 $16.49 2.7 3.3 3.0 6.3 5.5 6.7 2Q2007-1Q2008 $20.16 $15.58 $13.57 $22.23 $17.28 $21.06 6.1 2.6 2.0 7.4 5.3 7.6 2Q2006-1Q2007 $16.07 $13.07 $16.68 $22.14 $17.67 $7.28 4.9 2.9 1.3 6.7 8.4 4.5 2Q2005-1Q2006 $16.12 $12.60 $14.39 $24.67 $16.20 $7.45 5.7 1.8 0.0 8.2 6.5 5.4 2Q2004-1Q2005 $16.44 $13.07 $10.12 $22.75 $22.50 $8.23 3.5 3.9 0.9 8.1 7.7 5.1 2Q2003-1Q2004 $18.54 $13.59 $10.27 $23.36 $16.99 $8.93 2.0 3.1 1.5 8.7 7.0 6.3 9

INVESTMENT SALES INVESTMENT SALES MARKET REMAINS SLUGGISH Chicago s investment sales market started the year with another slow quarter. There were only four sales transactions completed, with a total of 1.7 million square feet and $549 million in total sales volume. Two additional sales are currently pending. The largest sale completed in the first quarter was 181 W. Madison, which sold to HNA Group for $360 million, or $378 per square foot. Five new properties came on to the market in the first quarter, bringing the total number of investment opportunities up to seven, with a combined total of approximately 4.9 million square feet. Rising interest rates may negatively impact capitalization rates and valuations, which is expected to suppress the investment market in 2017. CENTRAL BUSINESS DISTRICT : FEATURES FIRST QUARTER INVESTMENT MARKET ACTIVITY Building Address Sale Date Size Price Price per SF Class Seller Status/Buyer 225 W. Wacker 1-33 S State 311 W. Monroe 33 N. LaSalle 300 S. Wacker 401 N. Michigan 540 W. Madison 125 S. Wacker 150 N. Wacker On Market (1st Qtr 2017) On Market (1st Qtr 2017) On Market (1st Qtr 2017) On Market (1st Qtr 2017) On Market (1st Qtr 2017) On Market (3rd Qtr 2016) On Market (1st Qtr 2016) Under Contract (1st Qtr 2017) Under Contract (1st Qtr 2017) 650,812 $270,000,000 $415 A Mirae/Hines Marketing 753,686 $200,000,000 $265 B Madison Capital/KKR Marketing 386,000 $77,000,000 $199 C PGIM Real Estate/ GlenStar Properties Marketing 404,769 $73,000,000 $180 C John Buck Marketing 512,354 $155,000,000 $303 B Beacon Capital Partners Marketing 761,164 $325,000,000 $427 B Zeller Realty Marketing 1,111,925 $650,000,000 $585 A Third Millenium Marketing 510,426 $141,000,000 $276 B MetLife Callahan Capital/Ivanhoe Cambridge 246,613 $75,000,000 $304 B American Realty Advisors Randy Rissman 181 W. Madison 1st Qtr 2017 952,560 $360,000,000 $378 A CBRE Global Investors HNA Group 1333 N. Kingsbury 1st Qtr 2017 100,000 $27,800,000 $278 B Everbury Partners Credit Suisse AG 303 W. Erie 1st Qtr 2017 62,000 $15,000,000 $242 C Cedar Street Companies Alvarez & Marsal 123 N. Wacker 1st Qtr 2017 540,676 $146,500,000 $271 A LNR Properties LaSalle Investment Management 2017 Sales 1,655,236 $549,300,000 $332 10

FORECAST ADDED INVENTORY TO INCREASE VACANCY RATE The Chicago office market has experienced steady growth over the past couple years and is well positioned to absorb new inventory that is being added to the market. However, the overall vacancy rate can be expected to increase by at least one full percentage point over the next year. Also, rental rates in the CBD are not likely to increase significantly until the additional inventory and shadow space created by tenants relocating to new developments is leased. There were a significant number of large new deals and expansions signed in the first quarter of 2017, which is an indicator of positive momentum in the future. If this pace of deal execution continues, the market should be able to rapidly regain equilibrium. Investment sales activity is expected to remain subdued in 2017 due to rising interest rates, which can have a negative impact on capitalization rates and property valuations. In the meantime, many Class A buildings, particularly those in the West Loop, will be undergoing major renovations over the next few years to compete with the high level of standards set by the newly constructed trophy towers. Blackstone Group, for example, announced that it will be investing $500 million into Willis Tower renovations. Year Total Historic and Forecasted Inventory (SF) Total Historic & Forecasted Occupancy (SF) Direct Vacancy % 2001 122,776,164 108,743,284 11.4% 2002 124,713,268 107,598,500 13.7% 2003 125,037,423 106,754,119 14.6% 2004 126,452,643 106,568,104 15.7% 2005 128,385,650 105,737,728 17.6% 2006 126,478,575 108,402,912 14.3% 2007 125,626,639 110,969,808 11.7% 2008 125,269,078 110,833,045 11.5% 2009 130,038,076 110,112,891 15.3% 2010 130,539,796 109,602,891 16.0% 2011 130,649,210 110,516,410 15.4% 2012 131,044,641 111,238,394 15.1% 2013 131,021,405 111,964,734 14.5% 2014 131,035,247 113,231,032 13.4% 2015 132,712,489 116,743,521 12.0% 2016 132,712,489 118,112,204 11.3% 2017 134,162,702 119,215,028 11.1% 2018 136,322,275 119,992,563 12.0% 2007-2016 Absorption Avg: 2017 Absorption: tforecasted occupancy based on 10-year trailing absorption average *Inventory & occupancy reflect year end numbers 777,536 733,832 CENTRAL BUSINESS DISTRICT : FEATURES HISTORIC & PROJECTED VACANCY 140,000,000 135,000,000 130,000,000 125,000,000 120,000,000 115,000,000 110,000,000 105,000,000 100,000,000 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 20% 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% Total Historic and Forecasted Inventory (SF) Total Historic & Forecasted Occupancy (SF) % 11

MARKET STATISTICS CENTRAL LOOP RBA Absorption 1st Quarter Absorption % Occupancy Sublease Vacancy Total Vacancy Rate (Direct + Sublease) % Class A 14,680,555 (138,965) (138,965) 1,524,580 10.4% 13,155,975 374,479 12.9% Class B 15,204,607 24,364 24,364 1,877,099 12.3% 13,327,508 422,726 15.1% Class C 7,762,955 24,111 24,111 764,389 9.8% 6,998,565 121,571 11.4% Total 37,648,116 (90,490) (90,490) 4,166,068 11.1% 33,482,048 918,776 13.5% EAST LOOP RBA Absorption 1st Quarter Absorption % Occupancy Sublease Vacancy Total Vacancy Rate (Direct + Sublease) % Class A 4,108,119 (5,034) (5,034) 358,909 8.7% 3,749,210 66,065 10.3% Class B 10,940,478 109,954 109,954 1,536,499 14.0% 9,403,979 278,637 16.6% Class C 7,805,392 9,233 9,233 973,595 12.5% 6,831,797 103,164 13.8% Total 22,853,989 114,153 114,153 2,869,003 12.6% 19,984,986 447,866 14.5% N. MICHIGAN AVE. RBA Absorption 1st Quarter Absorption % Occupancy Sublease Vacancy Total Vacancy Rate (Direct + Sublease) % Class A 3,825,688 42,323 42,323 739,126 19.3% 3,086,562 83,123 21.5% Class B 4,694,377 (2,642) (2,642) 403,734 8.6% 4,290,643 44,999 9.6% Class C 3,774,762 70,049 70,049 385,212 10.2% 3,389,550 200,640 15.5% Total 12,294,827 109,730 109,730 1,528,072 12.4% 10,766,755 328,762 15.1% CENTRAL BUSINESS DISTRICT : FEATURES RIVER NORTH RBA Absorption 1st Quarter Absorption % Occupancy Sublease Vacancy Total Vacancy Rate (Direct + Sublease) % Class A 3,912,549 9,201 9,201 201,074 5.1% 3,711,475 80,238 7.2% Class B 4,150,200 (21,101) (21,101) 447,168 10.8% 3,703,032 214,899 16.0% Class C 5,429,026 27,336 27,336 671,545 12.4% 4,757,481 164,574 15.4% Total 13,491,775 15,436 15,436 1,319,787 9.8% 12,171,988 459,711 13.2% WEST LOOP RBA Absorption 1st Quarter Absorption % Occupancy Sublease Vacancy Total Vacancy Rate (Direct + Sublease) % Class A 27,200,832 533,669 533,669 2,598,700 9.6% 24,602,132 1,206,707 14.0% Class B 11,854,673 70,713 70,713 1,621,832 13.7% 10,232,841 367,572 16.8% Class C 5,411,917 6,020 6,020 602,976 11.1% 4,808,942 163,877 14.2% Total 44,467,422 610,402 610,402 4,823,508 10.8% 39,643,914 1,738,156 14.8% RIVER WEST RBA Absorption 1st Quarter Absorption % Occupancy Sublease Vacancy Total Vacancy Rate (Direct + Sublease) % Class A 1,051,383 0 0 10,420 1.0% 1,040,963 8,197 1.8% Class C 2,355,190 (25,399) (25,399) 230,816 9.8% 2,124,374 42,609 11.6% Total 3,406,573 (25,399) (25,399) 241,236 7.1% 3,165,337 50,806 8.6% TOTALS RBA Absorption 1st Quarter Absorption % Occupancy Sublease Vacancy Total Vacancy Rate (Direct + Sublease) % Class A 54,779,126 441,194 441,194 5,432,809 9.9% 49,346,317 1,818,809 13.2% Class B 46,844,334 181,288 181,288 5,886,332 12.6% 40,958,002 1,328,833 15.4% Class C 32,539,242 111,350 111,350 3,628,533 11.2% 28,910,709 796,435 13.6% Total CBD 134,162,702 733,832 733,832 14,947,674 11.1% 119,215,028 3,944,077 14.1% Numbers in parentheses are negative 12

SECTION THREE SUBMARKET MAP CENTRAL BUSINESS DISTRICT : FEATURES 13

CENTRAL LOOP LARGE TENANT RECOMMITS There was 90,490 square feet of total negative absorption in the Central Loop this quarter. There was 48,475 square feet of positive absorption in Central Loop Class B and C properties, but it was outweighed by 138,965 square feet of negative absorption in Class A properties. The negative absorption was caused by DLA Piper vacating 303,954 square feet at 203 N. LaSalle when they moved into the new tower at 444 W. Lake. The Central Loop s overall direct vacancy rate increased by 66 basis points to 11.07 percent. However, some of this increase was due to a number of buildings being added to the Central Loop inventory from the South Loop submarket, which we are no longer tracking as a separate submarket. The largest deal signed in the first quarter was Sidley Austin s renewed lease for 574,812 square feet at 1 S. Dearborn. The lease renewal is good news for the Central Loop, as many developers had been trying to woo the company to new developments in the West Loop. The Central Loop s boundaries are the Chicago River (North), Wells Street (West), State Street (East), and Van Buren Street (South). The Central Loop includes the Financial District, as well as many government offices, law firms, and professional services. It is also beginning to attract growing start-up companies as well. LARGEST BLOCKS OF DIRECT AVAILABILITY Building Address Size Availability Building Class 125 S. Clark 289,141 Vacant B 203 N. LaSalle 277,349 Vacant A 2 N. LaSalle 241,265 Vacant B 175 W. Jackson 228,226 Vacant B 222 N. LaSalle 165,866 June 2018 B 1 N. Dearborn 156,612 Negotiable B 141 W. Jackson 144,404 Vacant B 175 W. Jackson 135,369 July 2017 B 1 S. Dearborn 106,624 January 2020 A 200 W. Madison 96,395 September 2018 A 131 S. Dearborn 91,392 July 2017 A 440 S. LaSalle 89,045 Vacant A 2 N. LaSalle 84,135 Vacant B 141 W. Jackson 82,268 Vacant B 35 W. Wacker 75,000 Vacant A 175 W. Jackson 69,395 January 2018 B 33 W. Monroe 64,476 Vacant B 131 S. Dearborn 64,311 Vacant A 131 S. Dearborn 64,311 November 2017 A 120 S. LaSalle 62,557 Vacant B 161 N. Clark 61,326 November 2019 A 77 W. Wacker 55,032 Vacant A 1 N. Dearborn 52,373 Vacant B CENTRAL BUSINESS DISTRICT : SUBMARKET SNAPSHOTS CENTRAL LOOP SUMMARY A B C Total Inventory (square feet) 14,680,555 15,204,607 7,762,955 37,648,116 Year to Date Absorption (square feet) (138,965) 24,364 24,111 (90,490) Rate 10.4% 12.3% 9.8% 11.1% Total Vacancy Rate (Direct + Sublease) 12.9% 15.1% 11.4% 13.5% Numbers in parantheses are negative CENTRAL LOOP SUBMARKET HISTORICAL DIRECT VACANCY 25% 20% 15% 10% 5% 0% 14.7% 15.2% 17.5% 15.2% 11.8% 11.4% 12.7% 13.6% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 13.8% 13.2% 13.7% 12.7% 11.1% 10.4% 11.1% 14

EAST LOOP ANOTHER STRONG QUARTER FOR THE EAST LOOP The East Loop had a strong quarter with 114,153 square feet of total absorption. The overall direct vacancy rate decreased by 54 basis points from 2016 year end to 12.55 percent in the first quarter of 2017. Class B saw the most activity, with 109,954 square feet of positive absorption. The largest tenant move-in was Clark Hill s relocation into 71,818 square feet at 130 E. Randolph. The only large new deal executed in the East Loop during the first quarter was Intersport s lease of 30,176 square feet at 303 E. Wacker. The East Loop is bordered by the Chicago River (North), State Street (West), Lake Shore Drive (East), and Van Buren Street (South). It is inhabited by a variety of corporate tenants with a heavy lean toward advertising and media firms. LARGEST BLOCKS OF DIRECT AVAILABILITY Building Address Size Availability Building Class 333 S. Wabash 366,506 June 2018 B 200 E. Randolph 354,127 August 2018 A 333 S. Wabash 209,432 June 2018 B 233 N. Michigan 154,082 Negotiable B 200 E. Randolph 131,268 Vacant A 333 S. Wabash 130,895 June 2018 B 401 S. State 110,898 Vacant C 130 E. Randolph 99,064 Vacant B 1 N. State 98,212 Vacant C 122 S. Michigan 91,636 November 2017 C 122 S. Michigan 79,045 November 2017 C 303 E. Wacker 73,798 Vacant B 55 E. Monroe 73,145 Vacant B 1 N. State 52,569 October 2017 C 1 N. State 50,023 Vacant C CENTRAL BUSINESS DISTRICT : SUBMARKET SNAPSHOTS EAST LOOP SUMMARY A B C Total Inventory (square feet) 4,108,119 10,940,478 7,805,392 22,853,989 Year to Date Absorption (square feet) (5,034) 109,954 9,233 114,153 Rate 8.7% 14.0% 12.5% 12.6% Total Vacancy Rate (Direct + Sublease) 10.3% 16.6% 13.8% 14.5% Numbers in parantheses are negative EAST LOOP SUBMARKET HISTORICAL DIRECT VACANCY 25% 20% 15% 10% 5% 0% 17.2% 18.4% 22.4% 19.1% 14.2% 12.1% 16.3% 20.2% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 19.3% 19.7% 18.6% 17.7% 16.5% 13.1% 12.6% 15

NORTH MICHIGAN AVENUE LARGEST NEW DEAL OF THE QUARTER The North Michigan Avenue submarket saw a total of 109,730 square feet of positive absorption in the first quarter. The overall direct vacancy rate decreased by 88 basis points to 12.43 percent. The majority of the positive absorption was created by Ann & Robert H. Lurie Children s Hospital moving in to 68,082 square feet at 211 E. Chicago. The largest new deal of the quarter in the CBD was in the North Michigan Avenue submarket: Outcome Health s (formerly Context Media) lease of 394,000 square feet at 515 N. State. The lease will bring the building s occupancy rate, which has been less than 50 percent since the American Medical Association moved out of the building in 2013, up to 95 percent. The North Michigan Avenue submarket borders include Division Street (North), State Street (West), Lake Michigan (East), and the Chicago River (South). It is home to retailers, hotels, restaurants, entertainment venues, advertising and marketing agencies, and the Northwestern Memorial Hospital campus. LARGEST BLOCKS OF DIRECT AVAILABILITY Building Address Size Availability Building Class 515 N. State 166,082 Vacant A 435-445 N. Michigan 69,943 Negotiable C 330 N. Wabash 68,564 July 2017 B 455 N. Cityfront Plaza 52,045 Vacant A CENTRAL BUSINESS DISTRICT : SUBMARKET SNAPSHOTS NORTH MICHIGAN AVENUE SUMMARY A B C Total Inventory (square feet) 3,825,688 4,694,377 3,774,762 12,294,827 Year to Date Absorption (square feet) 42,323 (2,642) 70,049 109,730 Rate 19.3% 8.6% 10.2% 12.4% Total Vacancy Rate (Direct + Sublease) 21.5% 9.6% 15.5% 15.1% Numbers in parantheses are negative NORTH MICHIGAN AVENUE SUBMARKET HISTORICAL DIRECT VACANCY 25% 20% 15% 10% 5% 0% 10.8% 12.7% 14.0% 14.0% 11.8% 11.4% 16.7% 18.2% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 19.5% 20.5% 19.2% 17.2% 14.9% 13.3% 12.4% 16

RIVER NORTH RIVER NORTH VACANCY RATE REMAINS LOW The River North submarket had 15,436 square feet of positive absorption in the first quarter of 2017 and an overall direct vacancy rate of 9.78 percent, down 18 basis points from last quarter. The Merchandise Mart continues to attract premium tenants to the River North submarket. Kellogg announced that they have opened a new office for about 50 employees in its global growth and IT departments at The Merchandise Mart. Braintree, which is now owned by Paypal, expanded its space at The Mart by 27,698 square feet. The borders of the River North submarket are defined as Division Street (North), Racine Avenue (West), State Street (East), and the Chicago River (South). Historically, it has been home to small, older buildings that cater to furniture galleries and small businesses, but has more recently become a hub for technology, startups, and trading firms. LARGEST BLOCKS OF DIRECT AVAILABILITY Building Address Size Availability Building Class 350 N. Orleans 217,822 Vacant B 222 W. Merchandise Mart 154,295 September 2018 B 540 N. LaSalle 61,820 Vacant C 20 W. Kinzie 58,805 Vacant A 222 W. Merchandise Mart 55,708 Vacant B CENTRAL BUSINESS DISTRICT : SUBMARKET SNAPSHOTS RIVER NORTH SUMMARY A B C Total Inventory (square feet) 3,912,549 4,150,200 5,429,026 13,491,775 Year to Date Absorption (square feet) 9,201 (21,101) 27,336 15,436 Rate 5.1% 10.8% 12.4% 9.8% Total Vacancy Rate (Direct + Sublease) 7.2% 16.0% 15.4% 13.2% Numbers in parantheses are negative RIVER NORTH SUBMARKET HISTORICAL DIRECT VACANCY 25% 20% 15% 10% 5% 0% 11.9% 19.3% 14.5% 12.6% 10.6% 9.2% 15.8% 13.6% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 11.7% 9.1% 9.1% 8.9% 8.0% 10.0% 9.8% 17

WEST LOOP NEW DEVELOPMENTS DELIVERED Tenants are moving into two of the first new office towers to be developed since 2009, 444 W. Lake and 150 N. Riverside. These developments will add a combined 2.3 million square feet to Chicago s office market. There are two additional developments currently under construction in the West Loop: John Buck s new development at 151 N. Franklin and White Oak Realty s new development at 625 W. Adams, both of which are expected to be completed in 2018. Howard Hughes Corporation and Riverside Investment & Development released plans for a new 1.35 million square foot office tower at 110 N. Wacker, the site of GGP s current headquarters. The Chicago Plan Commission approved the plans in March and construction is expected to begin in October of this year. The largest new deal executed in the West Loop in the first quarter was The National Restaurant Association s lease of 50,852 square feet at Willis Tower. The owner of Willis Tower, Blackstone Group, announced that the iconic building will be undergoing a $500 million renovation. Nielsen announced that it will be consolidating its multiple suburban offices to its West Loop office at 200 W. Jackson, which will be expanded from 71,000 square feet to 215,000 square feet. The West Loop s borders are defined as the Chicago River (North), I-94/I-90 (West), Wells Street (East), and Van Buren Street (South). The West Loop is the largest submarket and is home to law firms, financial services firms, insurance companies, and multiple corporate headquarters. LARGEST BLOCKS OF DIRECT AVAILABILITY Building Address Size Availability Building Class 625 W. Adams 432,709 April 2018 A 311 W. Monroe 363,204 Vacant C 300 S. Riverside 316,563 Vacant B 151 N. Franklin 257,016 June 2018 A 71 S. Wacker 246,872 March 2020 A 227 W. Monroe 188,346 June 2017 A 233 S. Wacker 165,153 Vacant A 200 W. Monroe 158,698 January 2018 B 500 W. Madison 155,807 January 2018 A 550 W. Jackson 130,413 July 2017 A 30 S. Wacker 129,216 June 2017 A 111 S. Wacker 112,052 January 2018 A 444 W. Lake 106,292 Vacant A 222 W. Adams 104,057 September 2017 A 120 S. Riverside 102,072 April 2018 B 233 S. Wacker 91,807 Vacant A 71 S. Wacker 91,414 July 2017 A 123 N. Wacker 84,694 February 2018 A 550 W. Washington 73,121 Vacant A 100 S. Wacker 72,782 Vacant B 200 W. Jackson 71,781 Vacant B 191 N. Wacker 70,794 Vacant A 151 N. Franklin 70,450 June 2018 A 200 W. Jackson 70,193 Vacant B 1 N. Wacker 68,922 Vacant A 20 N. Wacker 68,137 March 2018 C 71 S. Wacker 63,317 October 2017 A 233 S. Wacker 60,992 Vacant A 111 N. Canal 58,073 Negotiable B 150 N. Riverside 57,056 Vacant A 1 S. Wacker 57,054 Vacant B 111 S. Wacker 55,644 January 2018 A CENTRAL BUSINESS DISTRICT : SUBMARKET SNAPSHOTS WEST LOOP SUMMARY A B C Total Inventory (square feet) 27,200,832 11,854,673 5,411,917 44,467,422 Year to Date Absorption (square feet) 533,669 70,713 6,020 610,402 Rate 9.6% 13.7% 11.1% 10.8% Total Vacancy Rate (Direct + Sublease) 14.0% 16.8% 14.2% 14.8% WEST LOOP SUBMARKET HISTORICAL DIRECT VACANCY 25% 20% 15% 10% 5% 0% 14.6% 14.4% 17.3% 11.5% 10.2% 11.8% 16.6% 15.8% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 14.2% 13.9% 13.1% 12.2% 10.9% 11.1% 10.8% 18

RIVER WEST FULTON MARKET CONTINUES TO REDEVELOP MBRE began officially tracking the River West submarket in 2015. River West continues to have the least availability in the CBD. Overall direct vacancy is at 7.08 percent. Direct vacancy for Class A properties remains at an exceptionally low 1 percent. The only real leasing opportunities are at developments that are currently proposed or under construction. The Fulton Market area in River West has attracted many investors eager to capitalize on the rapidly redeveloping area that includes Google s Chicago headquarters and McDonald s future headquarters. There are a wide variety of developments planned and under construction in the Fulton Market area, including: hotels, multi-family buildings, retail space, recreational facilities, and office space. One large deal was executed in River West in the first quarter by The Climate Corporation, who signed a new lease for 21,315 square feet at 1330 W. Fulton. The development is currently under construction and expected to be completed in July of 2017. River West s borders are defined as Erie Street (North), Ashland Ave (West), I-90/94 Kennedy Expressway (East), and I-290 Eisenhower Expressway (South). River West is an up-and-coming submarket that is attracting prominent tech companies. LARGEST BLOCK OF DIRECT AVAILABILITY Building Address Size Availability Building Class 330 N. Green 76,432 Vacant B 120 N. Racine 65,716 Vacant B CENTRAL BUSINESS DISTRICT : SUBMARKET SNAPSHOTS RIVER WEST SUMMARY A B C Total Inventory (square feet) 1,051,383 2,355,190 3,406,573 Year to Date Absorption (square feet) 0 (25,399) (25,399) Rate 1.0% 9.8% 7.1% Total Vacancy Rate (Direct + Sublease) 1.8% 11.6% 8.6% RIVER WEST SUBMARKET HISTORICAL DIRECT VACANCY 25% Numbers in parantheses are negative 20% 15% 10% 5% 0% 11.6% 9.8% 5.9% 8.5% 9.9% 15.8% 22.2% 22.1% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 18.3% 14.6% 11.4% 6.9% 7.4% 6.8% 7.0% 19

SECTION FOUR ADDITIONAL INFORMATION GLOSSARY Absorption: The net change in occupied space over a given period of time. Unless otherwise noted, Net Absorption includes direct and sublease space. Asking Rent: The published rental rate for a space in a building, which may vary from the rent which is negotiated upon by the tenant and landlord. Central Business District: The designations of Central Business District (CBD) and Suburban refer to a particular geographic area within a metropolitan statistical area (MSA) describing the level of real estate development found there. The CBD is characterized by a high density, well organized core within the largest city of a given MSA. Rental Rates: The annual costs of occupancy for a particular space quoted on a per square foot basis. Sales Price: The total dollar amount paid for a particular property at a particular point in time. SF: Abbreviation for Square Feet. Sublease Space: Space that has been leased by a tenant and is being offered for lease back to the market by the tenant with the lease obligation. Sublease space is sometimes referred to as sublet space. CHICAGO MARKET OVERVIEW Class: A classification used to describe buildings, with Class A reflecting the highest quality and Class C reflecting the lowest. Direct Vacant Space: Space that is being offered for lease directly from the landlord or owner of a building, as opposed to space being offered in a building by another tenant (or broker of a tenant) trying to sublet a space that has already been leased. Initial Rate: The contracted starting rental rate for the third term of a lease. Inventory: The square footage of buildings that have received a certificate of occupancy and are able to be occupied by tenants. Calculated by adding the Rentable Building Area (RBA) of all properties in a market or submarket. Large Block: The amount of contiguous space available in a building in terms of square footage. Contiguous spaces over 50,000 square feet are considered large by MB Real Estate. Lease Comparable: Comparables are properties with characteristics that are similar in nature. Their signing lease rates and other contracted elements are aggregated to analyze contracted market conditions as opposed to asking market conditions. Market: Geographic boundaries that serve to delineate core areas that are competitive with each other and constitute a generally accepted primary competitive set of areas. Markets are building type specific and are non-overlapping contiguous geographic designations. Markets can be further subdivided into Submarkets. Net Rental Rate: A rental rate that excludes certain expenses that a tenant could incur in occupying office space. Such expenses are expected to be paid directly by the tenant and may include janitorial costs, electricity, utilities, taxes, insurance and other related costs. Preleased Space: The amount of space in a building that has been leased prior to its construction completion date, or certificate of occupancy date. Price/SF: Calculated by dividing the price of a building (either sales price or asking sales price) by the Rentable Building Area (RBA). Rentable Building Area (RBA): The total building square footage that can be occupied by or assigned to a tenant for the purpose of determining a tenant s rental obligation. Generally, RBA includes a percentage of common areas including all hallways, main lobbies, bathrooms, and telephone closets. Submarkets: Specific geographic boundaries that serve to delineate a core group of buildings that are competitive with each other and constitute a generally accepted primary competitive set, or peer group. Submarkets are building type specific (office, industrial, retail, etc.), with distinct boundaries dependent on different factors relevant to each building type. Submarkets are non-overlapping, contiguous geographic designations having a cumulative sum that matches the boundaries of the Market they are located within. Suburban: The Suburban and Central Business District (CBD) designations refer to a particular geographic area within a metropolitan statistical area (MSA). Suburban is defined as including all office inventory not located in the CBD. Tenant Improvement: Those changes to property to accommodate specific needs of a tenant. TIs include installation or relocation of interior walls or partitions, carpeting or other floor covering, shelves, windows, toilets, etc. The cost of these is negotiated in the lease. Total Vacant Space: Direct plus sublease vacant space. Under Construction: The status of a building that is in the process of being developed, assembled, built or constructed. A building is considered to be under construction after it has begun construction and until it receives a certificate of occupancy. Vacancy Rate: A measurement expressed as a percentage of the total amount of physically vacant space divided by the total amount of existing inventory. Under construction space generally is not included in vacancy calculations. Vacancy rate can be based on direct, sublease, or total vacant space. Vacant Space: Space that is not currently occupied by a tenant, regardless of any lease obligation that may be on the space. Vacant space could be space that is either available or not available. For example, sublease space that is currently being paid for by a tenant but not occupied by that tenant, would be considered vacant space. Likewise, space that has been leased but not yet occupied because of finish work being done, would also be considered vacant space. : Abbreviation for Year-to-Date. Describes statistics that are cumulative from the beginning of a calendar year through whatever time period is being studied. 20

ABOUT MB REAL ESTATE OUR MISSION IS TO PROVIDE CLIENTS AND INVESTORS WITH EXTRAORDINARY REAL ESTATE VALUE AND UNLIMITED SUPPORT MB REAL ESTATE At MB Real Estate, our corporate mission is to maximize the value of our clients real estate by creating timely and innovative solutions that meet their unique needs and objectives. We offer the highest level of real estate support with our team of committed, results-driven experts in asset and facilities management, leasing, tenant representation, development, project management, and investment services. Supported by dedicated accounting, marketing, human resources, and information technology teams, our unique full-service firm is an industry leader in local and national corporate real estate. DEPARTMENT LEADERSHIP MB REAL ESTATE HEADQUARTERS 181 West Madison, Suite 4700 Chicago, Illinois 60602 phone: 312.726.1700 www.mbres.com EAST COAST REGIONAL HEADQUARTERS 335 Madison Avenue, 14th Floor New York, New York 10017 phone: 212.350.2300 fax: 212.350.2301 COMPANY LEADERSHIP PETER E. RICKER Chairman & CEO JOHN T. MURPHY Vice Chairman PATRICIA ALUISI Executive Vice President & Chief Administrative Officer/General Counsel KRYSTA BAVLSIK Executive Vice President & MBRE Healthcare MARK A. BUTH Executive Vice President & Managing Director of Leasing Services ANDREW J. DAVIDSON Executive Vice President & Managing Director of Corporate Services & Tenant Advisory DAVID R. GRAFF Executive Vice President of Project Services SUZANNE HENDRICK Senior Vice President & Director of Asset Management KAROLINE EIGEL Senior Vice President & Chief Marketing Officer EILEEN FLYNN Senior Vice President & Chief Financial Officer KEVIN M. PURCELL President, Leasing & Management Services PETER J. WESTMEYER Executive Vice President & Managing Director of Investment Services/ President & Managing Principal, MBRE Healthcare Group 21