Positive Net Absorption Recorded For The Fourth Consecutive Quarter

OFFICE SAN FERNANDO & MARKET REPORT Positive Net Absorption Recorded For The Fourth Consecutive Quarter MARKET OVERVIEW MARKET INDICATORS - VACANCY 16.7% NET ABSORPTION 25,4 CONSTRUCTION 12,3 RENTAL RATE $2.16 P FSG UNEMPLOYMENT 8.7% The San Fernando Valley and Ventura County office market saw total vacancy decrease to 16.7 percent, the fourth consecutive quarter to record a decrease in the vacancy rate. Net absorption in was 25,4 square feet, a relatively flat performance. Direct weighted average asking rents remained at $2.16 per square foot per month Full Service Gross (FSG) for the tenth straight quarter as landlords continue their strategy to attract and retain tenants. New leasing activity in Q1 was 558,2 square feet compared to 622,7 square in Q4 213. Investment sales activity was strong in Q1 as there was an investment sale that surpassed the $4 per square foot mark in the San Fernando Valley & Ventura County office market. The investment sales activity was as follows: Invesco acquired 311 Townsgate Rd in Westlake Village for $41 per square foot from Amstar Advisers, Cole Real Estate Investments acquired 28515 Westinghouse Place in Valencia for $299 per square foot from Heitman, Chippewa Enterpises acquired 31225 La Baya Dr in Westlake Village for $171 per square foot from Toth Properties, Koulakis Trust acquired 12 Sepulveda Blvd in Mission Hills for $146 per square foot from Moss Group, Younan Properties acquired 29 N Madera Rd in Simi Valley for $69 per square foot from Rexford Industrial. In terms of owner/user transactions, Michael P Donegan acquired 6851 Lennox Ave in Van Nuys for $116 per square foot from Moss Group. MARKET TRENDS - >> Total vacancy rate decreases from nnn16.9% to 16.7% HISTORICAL VACANCY VS RENTS V & Ventura County Office Market Q1 21 - HISTORICAL NET ABSORPTION & CONSTRUCTION COMPLETIONS V & Ventura County Office Market -Q1 21 - >> Weighted average asking rental rate remains at $2.16 P $2.35 $2.3 RENTS VACANCY 22% 2% 18% 3, 2, 1, NET ABSORPTION CONSTRUCTION COMPLETIONS >> Leasing activity decreases from nnn622,7 to 558,2 >> There was positive demand with 25,4 net absorption $ P PER MONTH (WEIGHTED) $2.25 $2.2 $2.15 $2.1 16% 14% 12% 1% 8% % VACANT (TOTAL) (1,) (2,) (3,) 6% (4,) >> 12,3 under construction $2.5 1Q1 1Q11 1Q12 1Q13 1Q14 4% (5,) 1Q1 1Q11 1Q12 1Q13 1Q14 1 Colliers International continuously refines its database. As a result, data reflected in this report may not be consistent with data reported in previous quarters. www.colliers.com/losangeles

MARKET REPORT OFFICE SAN FERNANDO & SAN FERNANDO & DEMOGRAPHICS >> POPULATION: 1,63,995 (214 Estimate) 1,423,669 (219 Projection) 3.57% (Growth 214-219) >> HOUSEHOLD INCOME: $75,972 (Average) $53,125 (Median) >> JOB GROWTH: 2.1% (past 12 months) >> UNEMPLOYMENT RATE: 8.7% (as of February 214) VACANCY The total vacancy rate, including sublet space decreased to 16.7 percent, down 2 basis points from 16.9 percent reported last quarter. A longer historical perspective of the total vacancy rate shows that the vacancy rate a year ago stood at 18. percent. Total vacancy rates continued to be highest in the Santa Clarita Valley submarket at 2.9 percent. The submarket with the lowest vacancy in Q1 was Central San Fernando Valley at 9.8 percent. A comparison by class illustrates that vacancy rates were highest for Class C space (18.8%) and lowest for Class A space (15.9%) with Class B space inbetween at 17.6 percent. NET ABSORPTION Net absorption was 25,4 square feet in Q1. This is the lowest amount of positive absorption in the past four quarters. Large tenants have expanded or signed leases to expand in 214. This is a promising trend for the San Fernando Valley and Ventura County office market. The best performing submarkets in Q1 were West Ventura County (38,8) and East San Fernando Valley (33,8 ). The worst performing submarkets in Q1 were West San Fernando Valley (-39,4 ) and Central San Fernando Valley (-21,4 ). The significant tenants that moved into their space in Q1 were as follows: Gold Coast Health Plan moved into 33,6 square feet at 711 E Daily Dr in Camarillo, IPC The Hospitalist Company expanded into 23,7 square feet at 464 Lankershim Blvd in North Hollywood, RLJ Entertainment moved into 18, square feet at 632 Canoga Ave in Woodland Hills and Sears moved into 16, square feet at 847 Fallbrook Ave in West Hills. UNEMPLOYMENT February 214 figures for nonfarm employment in Los Angeles County showed a recovering job market. Over the past 12 months, Los Angeles County has gained 86,1 jobs for an increase of 2.1 percent. This gain in employment led to the unemployment lowering to 8.7 percent compared to 1.2 percent a year ago. Year-over-year job gains were most significant in Professional and Business Services (27, jobs), Educational and Health Services (25,9 jobs) and Trade, Transportation, and Utilities (15,9 jobs). VACANCY BY SUBMARKET San Fernando Valley & Ventura County Office Market NET ABSORPTION BY SUBMARKET San Fernando Valley & Ventura County Office Market 25% SUBLEASE VACANCY DIRECT VACANCY 5, 2%.4%.%.5% 4, 3, 33,8 38,8 % VACANT 15% 1% 5%.8% 9.%.3% 16.%.3% 17.4% 19.8% 2.7% 2.4% 2, 1, (1,) (2,) (3,) (21,4) 3,1 1,5 % CENTRAL EAST (4,) (5,) (39,4) CENTRAL EAST P. 2 COLLIERS INTERNATIONAL

MARKET REPORT OFFICE SAN FERNANDO & OFFICE OVERVIEW San Fernando Valley & Ventura County Office Market EXISTING PROPERTIES VACANCY ACTIVITY ABSORPTION CONSTRUCTION RENTS Submarket/ Class Bldgs Total Inventory Direct Sublease Total Total Prior Qtr Leasing Activity Current Qtr Leasing Activity YTD Net Absorption Current Qtr Net Absorption YTD Completions Current Qtr Under Construction Weighted Avg Asking Lease Rate A 143 18,71,3 15.4%.5% 15.9% 16.2% 211,5 211,5 4,4 4,4 12,3 $2.34 B 261 14,42,5 17.4%.2% 17.6% 17.7% 341,7 341,7 14,5 14,5 $2.6 C 22 899,1 18.8%.% 18.8% 19.5% 5, 5, 6,5 6,5 $1.61 SUBTOTAL 58 3,139,2 2.7%.% 2.7% 21.9% 38,1 38,1 38,8 38,8 $1.95 SUBTOTAL 32 2,192,4 2.4%.5% 2.9% 21.% 15,8 15,8 3,1 3,1 $2.33 SUBTOTAL 16 6,783,6 17.4%.3% 17.6% 17.8% 168,6 168,6 1,5 1,5 12,3 $2.18 SAN FERNANDO SUBTOTAL 139 14,767,3 16.%.3% 16.3% 16.% 183,5 183,5 (39,4) (39,4) $2.18 CENTRAL SAN FERNANDO SUBTOTAL 61 4,523,8 9.%.8% 9.8% 9.3% 132,5 132,5 (21,4) (21,4) $2.26 EAST SAN FERNANDO SUBTOTAL 3 2,596,6 19.8%.4% 2.2% 21.5% 19,7 19,7 33,8 33,8 $2.27 SAN FERNANDO SUBTOTAL SUBTOTAL 23 21,887,7 15.%.4% 15.4% 15.5% 335,7 335,7 (27,) (27,) $2.21 SUBTOTAL SUBTOTAL 164 9,922,8 18.4%.2% 18.6% 19.1% 26,7 26,7 49,3 49,3 12,3 $2.7 MARKET TOTAL TOTAL 426 34,2,9 16.3%.3% 16.7% 16.9% 558,2 558,2 25,4 25,4 12,3 $2.16 RECENT TRANSACTIONS & MAJOR DEVELOPMENTS Orange County Industrial Market Q4 212 COLLIERS INTERNATIONAL P. 3

MARKET REPORT OFFICE SAN FERNANDO & >>This is the lowest amount of positive absorption in the past four quarters >> A 12,1 square foot Class A office building is under construction at 359 Townsgate Rd in Westlake Village >> The market-wide asking rents have remained flat for the past 1 quarters CONSTRUCTION A 12,1 square-foot Class A office building is under construction at 359 Townsgate Rd. in Westlake Village. The development is expected to deliver in the first half of 215. This building has already experienced 76,6 square feet of leasing activity before it has delivered. ACTIVITY New leasing activity during Q1 totaled 558,2 square feet compared to 622,7 square feet in Q4 213, a 1 percent increase. A majority of the new leasing activity in Q1 occurred in Class B buildings. A percentage breakdown illustrates that 38 percent of new leasing activity was recorded in Class A buildings while 61 percent of new leasing activity was recorded in Class B buildings. The significant lease deals in Q1 were as follows: Dole signed a lease for 75, square feet at 359 Townsgate in Westlake Village, Activision expanded 43,8 square feet at 21255 Burbank Blvd in Woodland Hills, Cydcor singed a lease for 4, square feet at 29899 Agoura Rd. in Agoura Hills and Champs Charter High Schools of the Arts signed an expansion for 37, square feet at 6842 Van Nuys Blvd. in Van Nuys. RENTAL RATES The weighted average asking rent for direct space remained at $2.16 per square foot FSG. Market-wide rental rates are not expected to increase in the near future given the high level of available space on the market. The average asking rents for the San Fernando Valley and Ventura County markets have remained flat for the past 1 quarters. Class A asking rents were $2.34, Class B were $2.6, and Class C were $1.61 per square foot FSG. The amount of owner/user transactions that occurred in 213 has led to the building inventory in the San Fernando Valley and Ventura County decreasing by 974,6 square feet. The effect has led to the change in asking rents in the East San Fernando Valley submarket and the Santa Clarita Valley submarket. The removal of 1 Universal City Plaza in the East San Fernando Valley submarket from the inventory pushed rents in the East San Fernando Valley submarket down from $2.74 to $2.27 per square foot FSG in Q1. Average asking rents are now highest in the Santa Clarita Valley submarket ($2.33 P) and lowest in the West Ventura County submarket ($1.95 P). WEIGHTED AVERAGE ASKING LEASE RATES BY SUBMARKET LEASING ACTIVITY BY SUBMARKET $ P PER MONTH (FSG) $2.4 $2.3 $2.2 $2.1 $2. $1.9 $1.8 $1.7 $1.95 $2.18 $2.18 $2.26 $2.27 CENTRAL EAST $2.33 2, 18, 16, 14, 12, 1, 8, 6, 4, 2, 15,8 19,7 EAST 38,1 132,5 CENTRAL 168,6 183,5 P. 4 COLLIERS INTERNATIONAL

MARKET REPORT OFFICE SAN FERNANDO & OUTLOOK Leasing activity in the San Fernando and Ventura County office market continues to remain strong. The most visible change in the activity in Q1 was the large number of new transactions over 2, square feet. The large lease transactions are expected to complement the positive absorption trend likely to continue throughout 214. The gradual improvement in the economy has also accelerated the space needs for smaller tenants. The smaller tenants are the segment that will drive positive absorption in the long run. MARKET DESCRIPTION The San Fernando Valley and Ventura County office market is a moderatesized market with 34. million square feet, representing 12 percent of office buildings 25, square feet and greater in the Los Angeles Basin. Leading industries in the Central and East San Fernando Valley submarkets include finance, insurance, professional services, and entertainment, and in the West San Fernando Valley and Conejo Valley submarkets, healthcare, high-tech and defense sectors. In the Santa Clarita Valley and West Ventura County submarkets, firms are predominantly from the professional, financial, high-tech and insurance services sectors. HISTORICAL LEASING ACTIVITY Q1 21 - UNEMPLOYMENT RATE United States, California & San Fernando Valley February 214 1,8, 1% 1,6, 9% 8.5% 8.7% 1,4, 1,2, 1,, 8, 6, 4, 2, 8% 7% 6% 5% 4% 3% 2% 1% 7.% 1Q1 1Q11 1Q12 1Q13 1Q14 % UNITED STATES CALIFORNIA LOS ANGELES RECENT TRANSACTIONS & MAJOR DEVELOPMENTS SALES ACTIVITY PROPERTY ADDRESS SIZE SALE PRICE PRICE P BUYER SELLER 311 Townsgate Rd, Westlake Village 238,9 $98.3 million $41 P Invesco Amstar Advisers 28515 Westinghouse Pl, Valencia 147, 44. million $299 P Cole RE Investments Heitman 31225 La Baya Dr, Westlake Village 45,1 $7.7 million $171 P Chippewa Enterprises Toth Properties 12 Sepulveda Blvd, Mission Hills 37,1 $5.4 million $146 P Koulakis Trust Moss Group 6851 Lennox Ave, Van Nuys 24,6 $2.85 million $116 P Michael P Donegan Moss Group LEASING ACTIVITY PROPERTY ADDRESS LEASED LEASE TYPE BLDG TYPE LESSEE LESSOR 359 Townsgate Rd, Westlake Village 76,6 New A Dole Amstar Advisers 21255 Burbank Blvd, Woodland Hills 43,8 Expansion A Activision LNR Property Corporation 29899 Agoura Rd, Agoura Hills 4, New A Cydcor Rbe 29899 Agoura LLC 6842 Van Nuys Blvd, Van Nuys 37, Expansion B Champs Charter High School The Martin Groupe 393 Russell Ranch Rd, Westlake Village 33,2 New A Kythera Biopharmaceuticals IDS Real Estate Group MAJOR DEVELOPMENTS PROJECT DEVELOPER SIZE SUBMARKET STATUS ESTIMATED COMPLETION 359 Townsgate Rd, Westlake Village Amstar Advisers 12,3 Conejo Valley Under Construction Q1 215 COLLIERS INTERNATIONAL P. 5

MARKET REPORT OFFICE SAN FERNANDO & DEFINITIONS OF KEY TERMS USED IN THIS REPORT Total Rentable Square Feet: Office space in buildings with 25, or more of speculative office space. Includes competitive space in Class A, B and C singletenant and multi-tenant buildings. Excludes non-competitive owner-occupied buildings, buildings that include 3% or greater of medical or retail space, and space that is underconstruction, under-renovation or off-market. Net Absorption: Net change in occupied square feet from one period to the next (includes the impact of change in vacant space available for sublease). Leasing Activity: Square feet leased from all known transactions completed during the quarter. Excludes lease renewals. 482 offices in 62 countries on 6 continents United States: 14 Canada: 42 Latin America: 2 Asia Pacific: 195 EMEA: 85 >> $2. billion in annual revenue >> 1.12 billion square feet under management >> Over 13,5 professionals Class A Space: Space that an image-conscious company would lease for its headquarters. Typically, this space has a very high level of finish and an excellent location, and commands the highest rents in the market. Class B Space: Highly functional, attractive space, but less prestigious than Class A Space, and commanding lower rental rates. Class C Space: Functional, competitive space, but with a lower level of finish and/or a less desirable location than with Class B Space, and commanding lower rental rates. Low-Rise: Buildings with a total of 4 floors or less. Mid-Rise: Buildings with a total of 5 to 13 floors. High-Rise: Buildings with 14 or more floors. Weighted Average Asking Rental Rates: Weighted by the total square feet available for direct lease. Data is based on Full Service Gross rents, and includes all costs associated with occupying the space, including taxes, insurance, maintenance, janitorial service and utilities. Reported on a monthly, per basis. Space Added (Net): Total square feet added during the quarter via construction completions, including renovated space returned to market, less total square feet taken off-market due to demolitions or conversions. Under Construction: Includes buildings that are in some phase of construction, beginning with foundation work and ending with the issuance of a Certificate of Occupancy. Technical Note Colliers International is continuously refining its database. The data shown in the historical tables and graphics in this report have been adjusted to take into account these changes in the database. UNITED STATES: V & Ventura County Office License No. 198231 1683 Ventura Boulevard, Suite J Encino, CA 91436 TEL +1 818 95 58 FAX +1 818 325 4 FENENBOCK, KEVIN, J. Senior Vice President GOULD, JEFFREY Senior Associate, CCIM HENNESSEY, BRIAN Senior Vice President ITULE, CHRIS Senior Associate MIDZI, TINASHE Regional Analyst Research Services MUMPER, HANS Executive Managing Director MUMPER, JACOB Associate PUTNAM, RICK Managing Director Western Region Capital Markets Direct : Space in existing buildings that is vacant and immediately available during the quarter for direct lease, plus space that is vacant but not available for direct lease or sublease (for example, that is being held for a future commitment). Total : Space in existing buildings that is vacant and immediately available during the quarter for direct lease or for sublease, plus space that is vacant but not available for direct lease or sublease. This report has been prepared by Colliers International for general information only. Information contained herein has been obtained from sources deemed reliable and no representation is made as to the accuracy thereof. Colliers International does not guarantee, warrant or represent that the information contained in this document is correct. Any interested party should undertake their own inquiries as to the accuracy of the information. Colliers International excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damages arising there from. This report and other research materials may be found on our website at www.colliers.com/greaterlosangeles. SALIMIAN, SHAWN Senior Associate SUN, LORRAINE Associate Accelerating success. P. 6 COLLIERS INTERNATIONAL www.colliers.com/marketname