Negative Absorption Recorded For The First Time In Past Nine Quarters

OFFICE SAN FERNANDO & VENTURA MARKET REPORT Negative Absorption Recorded For The First Time In Past Nine Quarters MARKET OVERVIEW MARKET INDICATORS - VACANCY 15.6% NET ABSORPTION -124,000 CONSTRUCTION 120,933 RENTAL RATE $2.18 P FSG UNEMPLOYMENT 6.9% During third quarter 2015, the San Fernando Valley and Ventura County office market saw total vacancy increase to 15.6% from 15.2% recorded one quarter ago. This is first quarter to record an increase in vacancy after nine consecutive quarters of decreasing rates. Net absorption in third quarter was -124,000 square feet (), bringing the vacancy rate up 40 basis points. Direct weighted average asking rents remained flat at $2.18 per square foot (P) per month Full Service Gross (FSG). New leasing activity in the third quarter was 479,100 compared to 631,100 in second quarter 2015. Investment sales activity remained active in third quarter as investors continue to take advantage of low interest rates, which are expected to increase by year-end. Approximately 1.2 million of office buildings sold at an average cap rate of 7.1%. A number of office properties are also currently pending sale. Sale activity was as follows: Griffin Capital Essential Asset REIT acquired the Bank of America portfolio in Simi Valley for $57 million ($118 P) from Rising Realty Partners, True North Management Group acquired the Valencia Corporate Plaza portfolio in Santa Clarita for $41.3 million ($212 P) from Angelo, Gordon & Co and Hankey Investment Company LP acquired 29851 & 29701 Agoura Rd in Agoura Hills for $27.4 million ($173 P) from Rising Realty Partners. MARKET TRENDS - >> Total vacancy rate increases from nnn15.2% to 15.6% HISTORICAL VACANCY VS RENTS V & Ventura County Office Market Q3 2011 - HISTORICAL NET ABSORPTION & CONSTRUCTION COMPLETIONS V & Ventura County Office Market - Q3 2011- >> Weighted average asking rental rate recorded at $2.18 P FSG $2.60 $2.50 RENTS VACANCY 25% 20% $2.60 $2.50 RENTS VACANCY 25% 20% >> Leasing activity decreases to 479,100 >> There was negative demand with -124,000 net absorption $ P PER MONTH (WEIGHTED) $2.40 $2.20 $2.10 15% 10% 5% % VACANT (TOTAL) $ P PER MONTH (WEIGHTED) $2.40 $2.20 $2.10 15% 10% 5% % VACANT (TOTAL) >> 120,933 under construction $2.00 3Q11 3Q12 3Q13 3Q14 3Q15 0% $2.00 3Q11 3Q12 3Q13 3Q14 3Q15 0% 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 & VENTURA SAN FERNANDO & VENTURA DEMOGRAPHICS >> POPULATION: 10,136,509 (2015 Estimate) 10,510,281 (2020 Projection) 3.69% (Growth 2015-2020) >> HOUSEHOLD INCOME: $78,309 (Average) $54,514 (Median) >> JOB GROWTH: 1.8% (past 12 months) >> UNEMPLOYMENT RATE: 6.9% (as of August 2015) VACANCY The total vacancy rate, including sublet space increased to 15.6%, up 40 basis points from 15.2% reported in second quarter 2015. A longer historical perspective shows that the vacancy rate a year ago stood at 15.3%. Total vacancy rates were highest in the West Ventura County at 21.5%. The submarket with the lowest vacancy in third quarter was Central San Fernando Valley at 11.2%. A comparison by class illustrates that vacancy rates were highest for Class A space (15.7%) and lowest for Class C space (13.7%) with Class B space (15.6%) in between. NET ABSORPTION Net absorption was -124,000 in third quarter largely due to the space givebacks experienced in Warner Center and West Hills. The largest moveout was Bank of America vacating 108,377 from Corporate Pointe in West Hills. The following submarkets recorded negative net absorption: West San Fernando Valley (-162,700 ), West Ventura County (-45,200) and Central San Fernando Valley (-13,700 ). Although negative absorption recorded for third quarter, there were two large move-ins. The significant tenants that moved into their space were as follows: Human Services Agency of Ventura County moved into 57,200 at 2900 N Madera Rd in Simi Valley and Fenton Charter School moved into 50,000 at 8925 Sunland Blvd in Sun Valley. UNEMPLOYMENT August 2015 figures for nonfarm employment in Los Angeles County showed continued recovery for the job market. Over the past 12 months, Los Angeles County has gained 76,300 jobs for an increase of 1.8%. This gain in employment led to unemployment lowering to 6.9% compared to 8.1% one year ago. Nine out of the eleven industries tracked by the EDD posted year-over-year gains. Educational and Health Services (+22,500), Trade, Transportation, and Utilities (+17,100) and Leisure and Hospitality (+16,800) posted the largest gains. Government (+ 7,500), and Professional and Business Services (+6,500) also increased yearover-year. 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 100,000 71,600 20% 0.2% 50,000 15,400 10,600 % VACANT 15% 10% 1.4% 0.0% 0.9% 0.3% 0.0% 14.6% 15.2% 15.7% 21.2% 0 (50,000) (100,000) (13,700) (45,200) 5% 10.1% 11.6% (150,000) (162,700) 0% CENTRAL EAST WEST WEST VENTURA (200,000) EAST CENTRAL WEST VENTURA WEST P. 2 COLLIERS INTERNATIONAL

MARKET REPORT OFFICE SAN FERNANDO & VENTURA 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 18,776,709 14.6% 1.1% 15.7% 14.3% 232,000 1,059,600 (251,800) (94,300) 0 120,933 $2.36 B 257 13,965,878 15.4% 0.2% 15.6% 16.1% 231,600 656,300 66,800 123,000 0 0 $2.00 C 22 874,054 13.7% 0.0% 13.7% 20.7% 15,500 22,800 60,900 56,400 0 0 $1.79 WEST VENTURA SUBTOTAL 57 3,072,782 21.2% 0.2% 21.5% 20.0% 58,000 116,900 (45,200) (2,100) 0 0 $1.97 SUBTOTAL 31 2,071,953 15.2% 0.0% 15.2% 15.7% 13,900 44,500 10,600 (7,700) 0 0 SUBTOTAL 105 6,553,712 14.6% 0.3% 14.9% 15.1% 97,700 412,000 15,400 86,200 0 120,933 $2.19 WEST SAN FERNANDO SUBTOTAL 139 14,840,973 15.7% 0.9% 16.7% 15.6% 172,500 743,000 (162,700) 19,300 0 0 $2.19 CENTRAL SAN FERNANDO SUBTOTAL 61 4,522,644 10.1% 1.4% 11.5% 11.2% 105,400 313,400 (13,700) (101,900) 0 0 $2.13 EAST SAN FERNANDO SUBTOTAL 29 2,554,550 11.6% 0.0% 11.6% 14.4% 31,600 108,900 71,600 91,300 0 0 $2.31 SAN FERNANDO SUBTOTAL SUBTOTAL 229 21,918,167 14.1% 0.9% 15.0% 14.5% 309,500 1,165,300 (104,800) 8,700 0 0 $2.19 VENTURA SUBTOTAL SUBTOTAL 162 9,626,494 16.7% 0.3% 17.0% 16.7% 155,700 528,900 (29,800) 84,100 0 120,933 $2.10 MARKET TOTAL TOTAL 422 33,616,614 14.9% 0.7% 15.6% 15.2% 479,100 1,738,700 (124,000) 85,100 0 120,933 $2.18 RECENT TRANSACTIONS & MAJOR DEVELOPMENTS Orange County Industrial Market Q4 2012 COLLIERS INTERNATIONAL P. 3

MARKET REPORT OFFICE SAN FERNANDO & VENTURA >> A majority of leasing activity in Q3 occurred in Class A (48%) & Class B (47%) buildings >> Two office buildings are currently under construction at 3043 & 2075 Townsgate Rd in Westlake Village >> The market-wide asking rents at $2.18 P FSG CONSTRUCTION There were no new office developments delivered to the market during third quarter of 2015. Currently, there are two office buildings under construction totaling 120,933. The Class A office buildings are located in the Westlake Park Place - Phase II office park at 3043 & 3075 Townsgate Rd. and in Westlake Village. The 3043 Townsgate Rd development is expected to deliver at the end of 2015 and the 60,466 building is fully pre-leased to PennyMac. The 60,467 3075 Townsgate Rd development is expected to deliver in the second half of 2016. There is approximately 630,000 of purposed office development space in San Fernando Valley & Ventura County. ACTIVITY New leasing activity during third quarter totaled 479,100 compared to 631,100 in second quarter 2015. This is the lowest leasing activty has been since third quarter 2012. A majority of the new leasing activity occurred in Class A (48%) and Class B (47%) buildings. The significant lease deals in third quarter were as follows: Intel Corp signed a new-direct deal for 24,398 at 26630 Aguora Rd in Calabasas, Essex signed a new-direct deal for 20,106 at 21860 Burbank Blvd in Woodland Hills, Barrister Executive Suites, Inc. renewed for 17,274 at 15760 Ventura Blvd in Encino and Merrill Lynch renewed for 16,470 at 16830 Ventura Blvd in Encino. RENTAL RATES The weighted average asking rent for direct space remained unchanged the the third consecutive quarter recording at $2.18 P FSG. A longer historical perspective direct asking recorded at $2.20 P FSG one year ago. Class A asking rents recorded at $2.36, Class B at $2.00, and Class C at $1.79 P FSG. Average asking rents were highest in the East San Fernando Valley submarket ($2.31 P FSG), and lowest in the West Ventura County submarket ($1.97 P FSG). Landlords continue to offer large concession packages in Santa Clartia Valley, North Valley and Conejo Valley as a large amount of vacant space remains on the market. In some market areas of San Fernando Valley like Encino, vacancy is tight resulting in higher asking rental rates and smaller concession packages. WEIGHTED AVERAGE ASKING LEASE RATES BY SUBMARKET LEASING ACTIVITY BY SUBMARKET $2.40 $2.19 $2.19 $2.31 200,000 180,000 160,000 172,500 $ P PER MONTH (FSG) $2.20 $2.10 $2.00 $1.97 $2.13 140,000 120,000 100,000 80,000 60,000 58,000 97,700 105,400 $1.90 40,000 31,600 $1.80 WEST CENTRAL VENTURA WEST EAST 20,000 0 13,900 EAST WEST VENTURA CENTRAL WEST P. 4 COLLIERS INTERNATIONAL

MARKET REPORT OFFICE SAN FERNANDO & VENTURA OUTLOOK Third quarter 2015 generated the first negative absorption quarter in the past nine quarters as well as a decrease in leasing trends. Despite this slowdown, asking rental rates remain stable and investment activity is expected to remain strong for the remaining part of the year as investors capitalize on low interest rates which are expected to increase by year end. As the end of 2015 approaches, overall annual trends for the San Fernando Valley and Ventura County office market are expected to end on a positive note. MARKET DESCRIPTION The San Fernando Valley and Ventura County office market is a moderatesized market with 34.0 million square feet, representing 12% of office buildings 25,000 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, hightech 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 Q3 2011 - UNEMPLOYMENT RATE United States, California & San Fernando Valley August 2015 1,800,000 1,600,000 1,400,000 1,200,000 1,000,000 800,000 600,000 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 5.2% 6.1% 6.9% 400,000 2.0% 200,000 1.0% 0 3Q11 3Q12 3Q13 3Q14 3Q15 0.0% United States California Los Angeles County RECENT TRANSACTIONS & MAJOR DEVELOPMENTS SALES ACTIVITY PROPERTY ADDRESS SIZE SALE PRICE PRICE P BUYER SELLER 1800 Tapo Canyon Rd/450 American St, Simi Valley 480,185 $57,000,000 $118 P Griffin Capital Essential Asset REIT Rising Realty Partners 28480/28490/28470 Avenue Standford, Santa Clarita 194,439 $41,250,000 $212 P True North Management Group Angelo, Gordon & Co 29851/29701 Agoura Rd, Agoura Hills 157,826 $27,405,500 $173 P Hankey Investment Company LP Rising Realty Partners 2000 Corporate Center Dr, Thousand Oaks 106,560 $19,100,000 $180 P Calabasas Harvest Fund, LLC Gramercy Property Trust, Inc. LEASING ACTIVITY PROPERTY ADDRESS LEASED LEASE TYPE BLDG TYPE LESSEE LESSOR 26630 Aguora Rd, Calabasas 24,398 Direct B Intel Corp Blackstone 21860 Burbank Blvd, Woodland Hills 20,106 Direct A Essex Thrifty Oil 15760 Ventura Blvd, Encino 17,274 Renewal A Barrister Executive Suites, Inc Douglas Emmett, Inc. 16830 Ventura Blvd, Encino 16,470 Renewal A Merrill Lynch Douglas Emmett, Inc. 19809 Prairie St, Chatsworth 14,239 Direct A CCRC Jamison Services, Inc. MAJOR DEVELOPMENTS PROJECT DEVELOPER SIZE SUBMARKET STATUS ESTIMATED COMPLETION 3043 Townsgate Rd, Westlake Village Amstar Advisers 60,466 Conejo Valley Under Construction Q4 2015 3075 Townsgate Rd, Westlake Village Amstar Advisers 60,467 Conejo Valley Under Construction Q3 2016 COLLIERS INTERNATIONAL P. 5

MARKET REPORT OFFICE SAN FERNANDO & VENTURA DEFINITIONS OF KEY TERMS USED IN THIS REPORT Total Rentable Square Feet: Office space in buildings with 25,000 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 30% 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. 502 offices in 67 countries on 6 continents United States: 140 Canada: 31 Latin America: 24 Asia Pacific: 199 EMEA: 108 >> $2.3 billion in annual revenue >> 1.7 billion square feet under management >> Over 16,200 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. 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. UNITED STATES: V & Ventura County Office License No. 01908231 16830 Ventura Boulevard, Suite J Encino, CA 91436 TEL +1 818 905 5800 FAX +1 818 325 4000 MATTESON, CAITLIN Research Director Research Services MUMPER, HANS Executive Managing Director Mid-Rise: Buildings with a total of 5 to 13 floors. High-Rise: Buildings with 14 or more floors. 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. 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. Accelerating success. P. 6 COLLIERS INTERNATIONAL www.colliers.com/marketname