MARKET WATCH SOUTHERN CALIFORNIA & PHOENIX

SOUTHERN CALIFORNIA & PHOENIX COMMERCIAL REAL ESTATE MARKET FOURTH QUARTER 217 MARKET WATCH SOUTHERN CALIFORNIA & PHOENIX 1.888.659.DAUM WWW.DAUMCOMMERCIAL.COM D/AQ Corp. # 1129558

DAUM TABLE OF CONTENTS Introduction Market Location Overview Map Los Angeles County L.A. COUNTY OVERVIEW- INDUSTRIAL & OFFICE L.A. CENTRAL / SOUTHEAST- INDUSTRIAL & OFFICE L.A. NORTH- INDUSTRIAL & OFFICE SAN GABRIEL VALLEY- INDUSTRIAL & OFFICE L.A. WEST / SOUTH- INDUSTRIAL & OFFICE I Orange County ORANGE COUNTY INDUSTRIAL ORANGE COUNTY OFFICE II Ventura County VENTURA COUNTY INDUSTRIAL VENTURA COUNTY OFFICE III Inland Empire INLAND EMPIRE INDUSTRIAL INLAND EMPIRE OFFICE IV Phoenix, Arizona PHOENIX INDUSTRIAL PHOENIX OFFICE V

DAUM MARKET OVERVIEW MAP 1. LA Central / East 2. LA North 3. San Gabriel Valley 4. LA West / South 5. Orange County 6. Ventura County 7. Inland Empire 8. Phoenix, Arizona

DAUM INTRODUCTION Continuing a distinguished heritage since 194, DAUM provides value-added brokerage, management, corporate services and consulting solutions resulting in economic benefit to our clients, our people and our company. For more than a century, DAUM has expanded its coverage across Southern California and has been an active partner in the explosive growth of the Phoenix, Arizona market. By combining a level of superior personal service with comprehensive market expertise and information, DAUM has earned its reputation as one of Southern California s and Arizona s leading commercial real estate firms. DAUM has more than 14 highly skilled professionals in ten (1) branch offices throughout Southern California and Phoenix, Arizona. In addition to its strong regional expertise, DAUM uses its affiliation with ONCOR International, SIOR, CIREI, CCIM, AIR and other professional organizations to provide seamless professional services to clients wherever needed. DAUM is pleased to present its quarterly market review and insight for the office and industrial markets in Southern California and Phoenix, Arizona. DAUM realizes the importance of keeping its clients abreast of the ever-changing market and is committed to delivering the most timely and accurate market information, coupled with local expertise and market knowledge. For further information on how DAUM can provide real estate solutions for you, please contact one of our branch locations or visit us on the web at: www.daumcommercial.com. LOS ANGELES, CALIFORNIA 81 S. Figueroa Street, Suite 6 Los Angeles, CA 917 213-626-911 SOUTH BAY, CALIFORNIA 125 W. 19th Street, Suite 42 Gardena, CA 9248 31-538-67 VENTURA & SANTA BARBARA, CALIFORNIA 751 Daily Drive, Suite 15 Camarillo, CA 931 85-987-8866 LOS ANGELES NORTH, CALIFORNIA 2182 Burbank Boulevard, Suite 21 Woodland Hills, CA 91367 818-887-36 MID-COUNTIES, CALIFORNIA 1381 Cerritos Corporate Drive, Suite C Cerritos, CA 973 562-27-33 INLAND EMPIRE, CALIFORNIA 3595 E. Inland Empire Boulevard, Bldg. 5 Ontario, CA 91764 99-98-1234 SANTA CLARITA VALLEY, CALIFORNIA 28494 Westinghouse Place, Suite 312 Valencia, CA 91355 661-75-2299 ORANGE COUNTY, CALIFORNIA 44 MacArthur Boulevard, Suite 95 Newport Beach, CA 9266 949-724-19 PHOENIX ARIZONA 172 E. Highland Avenue, Suite 12 Phoenix, AZ 8516 62-957-73 SAN GABRIEL VALLEY, CALIFORNIA 13181 Crossroads Pkwy. N, Suite 1 City of Industry, CA 91746 562-695-7244 1.888.659.DAUM www.daumcommercial.com

Section 1 LOS ANGELES COUNTY

LOS ANGELES COUNTY INDUSTRIAL FOURTH QUARTER 217 QUICK STATS Direct Vacancy 1.8% Overall Vacancy 2.% Lease Rate NNN $.84 Gross Absorption Under Construction MARKET TRENDS ECONOMIC STATS Current Quarter 12,717,99 SF 4,536,912 SF Change from Last Quarter Year Overall Vacancy Rental Rates Gross Absorption Under Construction INDUSTRIAL SUMMARY & OUTLOOK The L.A. County industrial market witnessed vacancy rates decrease during the quarter, moving from 2.1% to 2.%. Average asking rents increased 1.5%, year over year, moving from $.76nnn to $.84nnn. During the quarter, gross absorption totaled 12.7 million square feet, while net absorption posted a gain of 2.6 million square feet of occupied space. Under construction activity decreased during the quarter with 4.5 million square feet currently underway, as the market delivered 6.5 million square feet of new space for the year. Unemployment rates have declined from 4.7% to 4.2%, year over year, and is equal to California (4.2%) and above the U.S. average of 3.9%. The industrial market continues to see available supply remain at extremely low levels throughout the county, and while new construction has been at higher levels, it still has not been enough to keep pace with strong demand, resulting in vacancy remaining at all-time lows and rental rates still rising rapidly. Demand for industrial space will continue to be driven by domestic and global consumption levels. In 217, the Los Angeles and Long Beach Port container traffic recorded its highest container total ever with 16.89 million TEU s, up 8% from 216 and 7% higher than its second highest year during 26. The investment and sale market for industrial real estate in Los Angeles County remains extremely strong, as median prices have witnessed double-digit annual price growth from 214 to 217, and is up another 12.1% in 217. The capital markets remain solid with plenty of liquidity, but we expect interest rates to continue to rise in the coming year, which is expected to slow the double-digit annual price growth. The overall industrial market remains a landlord controlled market, and we expect vacancy to remain in the 2% range, with rents expected to rise another 4% to 6% in the coming year. VACANCY & NET ABSORPTION Current Month Previous Year Dec. 17 Dec. 16 Unemployment 4.2% 4.7% Rate (MSA) Change in # +8,3 +54,7 Of Jobs (MSA) % Change for +.2% +1.2% Jobs (MSA) 6,, 5,, 4,, 3,, 2,, 1,, 6.% 5.% 4.% 3.% 2.% 1.% (1,,).% Net Absorption SF Overall Vacancy

LOS ANGELES COUNTY INDUSTRIAL FOURTH QUARTER VACANCY RENTAL RATES & TIME ON THE MARKET 6.% $.9 7. 5.% 4.% 3.% 2.% 1.%.% $.8 $.7 $.6 $.5 $.4 $.3 6. 5. 4. 3. 2. 1.. Direct Vacancy Overall Vacancy Overall vacancy rates (including sublease space) decreased during the quarter, moving from 2.1% to 2.%. Of the four major markets within the Los Angeles County market, the LA-West/South and the LA-Central/SE markets ended the quarter with the lowest total vacancy of 1.9%, followed the San Gabriel Valley at 2.%, and the LA-North market finishing the quarter at 2.2%. Since the fourth quarter of 216, overall vacancy rates have decreased from 2.1% to 2.%, and remains at its lowest level in more than a decade. Avg. Rent (NNN) Time to Lease (Months) Standard industrial asking rental rates increased 1.5%, year over year, moving from $.76nnn to $.84nnn. Of the four major markets within Los Angeles County, the LA-North market ended the quarter with the highest standard industrial rental rate of $.92nnn, followed by the LA-West/South at $.91nnn, the LA- Central/SE market at $.8nnn, and the San Gabriel Valley market at $.73nnn. Average rental rates increased 3.7% from the previous quarter, moving from $.81nnn to $.84nnn. ABSORPTION CONSTRUCTION ACTIVITY 2,, 8,, 7,, 15,, 6,, 5,, 1,, 4,, 3,, 5,, 2,, 1,, (5,,) Net Absorption SF Gross Absorption SF SF Newly Completed SF Under Construction During the quarter, gross absorption finished with 12.7 million square feet of activity, up 2% compared to the previous quarter, and higher by 36% compared to a year ago. Net absorption posted a gain of 2.6 million square feet of occupied space during the quarter, and gained 7.35 million square feet for the year. The market gained 3.7 million square feet in 216, after gaining 1.8 million square feet in 215, 14. million square feet in 214 and 7.6 million square feet in 213. Overall activity in the market will be fully reliant on more space becoming available in the market. We expect to see similar amounts of new construction being delivered in the coming quarters, which will try to keep pace with strong demand. Under construction activity moved lower during the quarter, with 4.5 million square feet currently underway, as the market delivered 6.5 million square feet of new space for the year. New construction deliveries for 216 totaled 2.65 million square feet, after the market delivered 3.5 million square feet in 215, 2. million square feet in 214, and 3.3 million square feet in 213. During the past five years, the market has averaged 3.6 million square feet of new deliveries, annually. We expect new construction activity to remain at similar levels in the coming quarters, as available industrial development sites still remain in very short supply in this mostly dense infill market.

LOS ANGELES COUNTY INDUSTRIAL FOURTH QUARTER 217 MARKET SNAPSHOT Total Direct Direct Total Vacant Vacancy Inventory Vacant Vacancy w/ Sublet with Sublet SUBMARKETS Square Footage Square Footage Rate Square Footage Rate Central/ SE LA 343,88,357 6,329,73 1.8% 6,64,345 1.9% LA- North 166,49,641 3,214,93 1.9% 3,698,617 2.2% San Gabriel Valley 172,16,534 3,58,79 1.8% 3,366,119 2.% West / South LA 231,42,228 3,86,34 1.6% 4,37,378 1.9% L.A. County Totals 913,6,76 16,49,646 1.8% 18,12,459 2.% Industrial Market Inventory 2.5% Industrial Vacancy Rates West / South LA 25% Central/ SE LA 38% 2.% 1.5% San Gabriel Valley 19% LA- North 18% 1.%.5%.% Central/ SE LA LA- North San Gabriel Valley West / South LA Direct Vacancy Rate Vacancy with Sublet Rate Average Average Square Feet Square Feet Gross Absorption Industrial R&D / Flex Built in Under Square Feet SUBMARKETS Rent Rent 217 Construction Current Quarter Central/ SE LA $.8 $1.28 1,634,88 2,379,513 4,843,74 LA- North $.92 $1.29 1,61,18 564,654 2,318,84 San Gabriel Valley $.73 $.95 2,331,411 79,669 2,39,496 West / South LA $.91 $1.28 1,59,649 82,76 3,165,445 L.A. County Totals $.84 $1.22 6,537,12 4,536,912 12,717,99 Industrial Rents New Construction Activity $1. $.9 $.8 $.7 $.6 $.5 $.4 $.3 $.2 4,5, 4,, 3,5, 3,, 2,5, 2,, 1,5, 1,, $.1 $. Central/ SE LA LA- North San Gabriel Valley Std Industrial Rents West / South LA 5, Central/ SE LA Built in 217 LA- North San Gabriel Valley Under Construction West / South LA

LOS ANGELES COUNTY INDUSTRIAL FOURTH QUARTER 217 SOUTHERN CALIFORNIA INDUSTRIAL SALES TREND ANALYSIS TOTAL SALES TRANSACTIONS Market 28 29 21 211 212 213 214 215 216 217 LA County 99 523 79 1,43 1,442 1,195 1,346 1,59 1,49 1,723 Orange County 216 163 21 278 445 399 35 435 47 51 Inland Empire 389 293 288 383 56 57 594 679 646 848 Ventura County 65 59 53 83 92 1 19 111 137 131 Totals 1,579 1,38 1,26 1,787 2,539 2,264 2,399 2,815 2,662 3,23 TOTAL TRANSACTION DOLLAR VALUE (MILLIONS) Bldg. SF 28 29 21 211 212 213 214 215 216 217 LA County $2,9.7 $855. $1,238.9 $1,564.7 $2,145.2 $2,31.2 $2,297.7 $3,255.2 $2,947.6 $3,46.7 Orange County $525.4 $268.7 $425.3 $622.4 $646.1 $856.6 $96.6 $97.3 $1,269.3 $1,137.4 Inland Empire $1,315.6 $61.1 $879.4 $1,2.2 $94.1 $1,289.8 $1,488.8 $1,571. $1,396.4 $1,944. Ventura County $19. $41.7 $13.4 $16. $191.3 $117.5 $217.8 $152.9 $198.4 $221.2 Totals $4,4.7 $1,775.5 $2,647. $3,295.3 $3,886.7 $4,295.1 $4,965. $5,886.3 $5,811.7 $6,79.3 TOTAL SQUARE FEET SOLD Bldg. SF 28 29 21 211 212 213 214 215 216 217 LA County 21,54,775 12,72,239 22,111,368 21,441,991 32,187,47 23,536,52 23,69,595 32,79,793 23,877,886 29,429,84 Orange County 3,876,845 3,227,465 4,642,255 6,932,955 9,112,749 9,451,638 9,421,962 8,91,899 8,791,77 8,915,84 Inland Empire 2,3,636 12,127,851 19,912,668 18,246,26 18,677,764 23,322,756 22,993,923 21,78,64 15,61,71 2,829,822 Ventura County 1,334,814 446,275 1,217,138 1,386,321 3,496,396 1,669,355 3,123,237 1,85,294 2,79,797 2,767,523 Totals 46,27,7 28,53,83 47,883,429 48,7,293 63,474,379 57,98,269 59,229,717 64,612,626 5,981,1 61,942,953 AVERAGE PRICE / SF Bldg. SF 28 29 21 211 212 213 214 215 216 217 LA County $119.13 $93.17 $72.12 $97.74 $96.81 $11.18 $114.27 $131.77 $151.36 $157.36 Orange County $157.9 $124.68 $12.72 $12.64 $11.4 $18.89 $129.56 $152.2 $163.78 $169.95 Inland Empire $83.14 $54.88 $53.35 $62.4 $66.74 $7.91 $73.69 $9.36 $13.75 $116. Ventura County $132.16 $13.65 $92.43 $11.31 $68.76 $84.3 $93.17 $15.72 $1.23 $17.39 Averages $17.2 $81.4 $67.79 $85.12 $88.31 $89.78 $99.83 $119.88 $136.21 $143.3 MEDIAN PRICE / SQUARE FOOT Bldg. SF 28 29 21 211 212 213 214 215 216 217 LA County $14.98 $115.93 $13.97 $17.96 $18.36 $114.1 $127.19 $142. $158.46 $177.59 Orange County $19.78 $15. $126.25 $125.4 $126.6 $136.89 $145. $169. $179.67 $23.87 Inland Empire $123.55 $86.85 $75.66 $7.64 $72.62 $76.33 $88.42 $1. $118.1 $125.38 Ventura County $151.19 $159.57 $114.43 $14.9 $99.77 $97.1 $113.66 $124.7 $122.33 $14.46 Median Average $137.91 $18.1 $94.62 $96.13 $99.91 $12.13 $114.26 $131.7 $147.82 $162.16 MEDIAN $ PSF INCREASE Bldg. SF 29 21 211 212 213 214 215 216 217 LA County -17.8% -1.3% 3.8%.4% 5.3% 11.5% 11.6% 11.6% 12.1% Orange County -21.4% -15.8% -1.%.8% 8.6% 5.9% 16.6% 6.3% 13.5% Inland Empire -29.7% -12.9% -6.6% 2.8% 5.1% 15.8% 13.1% 18.% 6.2% Ventura County 5.5% -28.3% -9.% -4.2% -2.7% 17.1% 9.7% -1.9% 14.8% Totals -21.6% -12.5% 1.6% 3.9% 2.2% 11.9% 14.7% 12.8% 9.7% The following information has been obtained from sources deemed reliable. While we do not doubt its accuracy, we make no warranty or representation about it. This report contains verified arms-length transactions, but excludes all portfolio sales.

Median Price PSF Annual Increase Square Footage Sold Average Price PSF Number of Transactions Transaction $ Volume (Millions) LOS ANGELES COUNTY INDUSTRIAL FOURTH QUARTER 217 SOUTHERN CALIFORNIA INDUSTRIAL SALES TREND ANALYSIS Number of Transactions Transaction Volume $ 2, 1,8 1,6 1,4 1,2 1, 8 6 4 2 $4,. $3,5. $3,. $2,5. $2,. $1,5. $1,. $5. 28 29 21 211 212 213 214 215 216 217 LA County 99 523 79 1,43 1,442 1,195 1,346 1,59 1,49 1,723 Orange County 216 163 21 278 445 399 35 435 47 51 Inland Empire 389 293 288 383 56 57 594 679 646 848 Ventura County 65 59 53 83 92 1 19 111 137 131 35,, 3,, Square Footage Sold $. 28 29 21 211 212 213 214 215 216 217 LA County $2,9.7 $855. $1,238.9 $1,564.7 $2,145.2 $2,31.2 $2,297.7 $3,255.2 $2,947.6 $3,46.7 Orange County $525.4 $268.7 $425.3 $622.4 $646.1 $856.6 $96.6 $97.3 $1,269.3 $1,137.4 Inland Empire $1,315.6 $61.1 $879.4 $1,2.2 $94.1 $1,289.8 $1,488.8 $1,571. $1,396.4 $1,944. Ventura County $19. $41.7 $13.4 $16. $191.3 $117.5 $217.8 $152.9 $198.4 $221.2 $18. $16. Average Price PSF 25,, 2,, $14. $12. $1. 15,, $8. 1,, 5,, $6. $4. $2. 28 29 21 211 212 213 214 215 216 217 21,54,775 12,72,239 22,111,368 21,441,991 32,187,47 23,536,52 23,69,595 32,79,793 23,877,886 29,429,84 LA County Orange County 3,876,845 3,227,465 4,642,255 6,932,955 9,112,749 9,451,638 9,421,962 8,91,899 8,791,77 8,915,84 Inland Empire 2,3,636 12,127,851 19,912,668 18,246,26 18,677,764 23,322,756 22,993,923 21,78,64 15,61,71 2,829,822 Ventura County 1,334,814 446,275 1,217,138 1,386,321 3,496,396 1,669,355 3,123,237 1,85,294 2,79,797 2,767,523 Median Price PSF $. 28 29 21 211 212 213 214 215 216 217 LA County $119.13 $93.17 $72.12 $97.74 $96.81 $11.18 $114.27 $131.77 $151.36 $157.36 Orange County $157.9 $124.68 $12.72 $12.64 $11.4 $18.89 $129.56 $152.2 $163.78 $169.95 Inland Empire $83.14 $54.88 $53.35 $62.4 $66.74 $7.91 $73.69 $9.36 $13.75 $116. Ventura County $132.16 $13.65 $92.43 $11.31 $68.76 $84.3 $93.17 $15.72 $1.23 $17.39 % Change Median Price PSF $225. $2. $175. $15. $125. 3.% 2.% 1.%.% $1. $75. $5. $25. $. 28 29 21 211 212 213 214 215 216 217 LA County $14.98 $115.93 $13.97 $17.96 $18.36 $114.1 $127.19 $142. $158.46 $177.59 Orange County $19.78 $15. $126.25 $125.4 $126.6 $136.89 $145. $169. $179.67 $23.87 Inland Empire $123.55 $86.85 $75.66 $7.64 $72.62 $76.33 $88.42 $1. $118.1 $125.38 Ventura County $151.19 $159.57 $114.43 $14.9 $99.77 $97.1 $113.66 $124.7 $122.33 $14.46-1.% -2.% -3.% -4.% 29 21 211 212 213 214 215 216 217 LA County -17.8% -1.3% 3.8%.4% 5.3% 11.5% 11.6% 11.6% 12.1% Orange County -21.4% -15.8% -1.%.8% 8.6% 5.9% 16.6% 6.3% 13.5% Inland Empire -29.7% -12.9% -6.6% 2.8% 5.1% 15.8% 13.1% 18.% 6.2% Ventura County 5.5% -28.3% -9.% -4.2% -2.7% 17.1% 9.7% -1.9% 14.8%

LOS ANGELES COUNTY INDUSTRIAL FOURTH QUARTER 217 PORTS OF LONG BEACH & LOS ANGELES HISTORICAL CONTAINER STATS & TRENDS Quarter & Year Loaded Inbound (Imports) Loaded Outbound (Exports) Total Loaded Empties Total Containers % Change (Prior Qtr.) % Change (Prior Yr.) % Change (Prior 2 Yrs.) 4Q 217 2,236,512 864,951 3,11,463 1,329,531 4,43,994-2.% 6.7% 14.3% 3Q 217 2,339,73 811,292 3,15,365 1,372,386 4,522,752 1.1% 11.4% 6.% 2Q 217 2,117,463 826,178 2,943,641 1,163,392 4,17,33 7.3% 7.4% 5.% 1Q 217 1,886,23 868,29 2,754,259 1,72,668 3,826,927-7.9% 6.5% 1.1% 4Q 216 2,87,498 879,267 2,966,765 1,186,955 4,153,72 2.3% 7.1% 12.4% 3Q 216 2,99,2 853,33 2,952,233 1,17,223 4,59,456 6.1% -4.8% 7.6% 2Q 216 2,96,446 856,215 2,818,94 1,7,246 3,825,34 6.5% -2.2% 3.4% 1Q 216 2,94,859 845,44 2,598,231 995,27 3,593,438-7.3% 3.4% -.1% 4Q 215 1,991,444 826,65 2,736,45 1,14,516 3,876,965-9.1% 4.9% 1.4% 3Q 215 1,817,161 844,562 2,661,724 1,284,213 4,265,623 9.% 13.% 7.1% 2Q 215 1,754,371 812,98 2,567,351 1,82,394 3,913,298 12.6% 5.8% 2.1% 1Q 215 1,89,18 789,51 2,598,231 878,445 3,476,676-5.9% -3.4% -3.3% 4Q 214 1,931,724 759,835 2,691,559 1,4,845 3,696,44-2.% -3.4%.3% 3Q 214 1,928,187 757,74 2,685,261 1,88,28 3,773,541 2.% -5.2% -2.8% 2Q 214 1,949,84 787,366 2,736,45 963,69 3,7,59 2.8% -3.4% 5.1% 1Q 214 2,37,574 779,934 2,817,58 78,456 3,597,965-5.9%.1% 15.5% 4Q 213 2,138,563 795,898 2,934,461 89,168 3,824,629-3.9% 3.8% 22.6% 3Q 213 2,168,57 812,93 2,981,41 1,,38 3,981,718 3.9% 2.6% 16.% 2Q 213 2,128,54 834,75 2,963,254 868,882 3,832,136 6.6% 8.9% 6.5% 1Q 213 2,38,181 84,821 2,879,3 716,573 3,595,576-2.4% 15.5%.2% Ports of Long Beach & Los Angeles Historical Container Stats Container Trade in TEUs* 5,, 4,5, 4,, 3,5, 3,, 2,5, 2,, 1,5, 1,, 5, 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 29 29 29 29 21 21 21 21 211 211 211 211 212 212 212 212 213 2132 13213 214 214 214 214 215 215 215 215216 216 216 216217 217 217 217 Loaded Inbound (Imports) Loaded Outbound (Exports) Empties

LOS ANGELES COUNTY INDUSTRIAL FOURTH QUARTER 217 MARKET REPORT OVERVIEW SOUTHERN CALIFORNIA MARKET MAP METHODOLOGY & TERMINOLOGY Methodology Industrial and flex (R & D) buildings that are 5, square feet and greater. Direct Vacant SF Space that is vacant and ready for occupancy by a user. The space is being offered for lease or sale directly from the landlord. Total Vacant W/ Sublet SF Space that is vacant and ready for occupancy by a user. The space is being offered for lease or sale by the landlord or for sublease by the current tenant. DAUM OFFICES LOS ANGELES, CALIFORNIA 81 S. Figueroa Street, Suite 6 Los Angeles, CA 917 213-626-911 LOS ANGELES NORTH, CALIFORNIA 2182 Burbank Boulevard, Suite 21 Woodland Hills, CA 91367 818-887-36 SANTA CLARITA VALLEY, CALIFORNIA 28494 Westinghouse Place, Suite 312 Valencia, CA 91355 661-75-2299 MID-COUNTIES, CALIFORNIA 1381 Cerritos Corporate Drive, Suite C Cerritos, CA 973 562-27-33 ORANGE COUNTY, CALIFORNIA 44 MacArthur Boulevard, Suite 95 Newport Beach, CA 9266 949-724-19 VENTURA & SANTA BARBARA, CALIFORNIA 751 Daily Drive, Suite 15 Camarillo, CA 931 85-987-8866 Direct Vacancy Rate Total vacant direct space (vacant space for lease or sale from the landlord or owner) divided by the total rentable square footage for existing buildings only. Vacancy W/ Sublet Rate Total vacant direct space and sublease space divided by the total rentable square footage for existing buildings only. Gross Absorption The total change in occupied space over a given period of time, counting space that is occupied but not space that is vacated by tenants. Gross absorption differs from leasing activity, which is the sum of all space leased over a certain period of time. SAN GABRIEL VALLEY, CALIFORNIA 13181 Crossroads Pkwy. N, Suite 1 City of Industry, CA 91746 562-695-7244 SOUTH BAY, CALIFORNIA 125 W. 19th Street, Suite 42 Gardena, CA 9248 31-538-67 INLAND EMPIRE, CALIFORNIA 3595 E. Inland Empire Boulevard, Bldg. 5 Ontario, CA 91764 99-98-1234 PHOENIX ARIZONA 172 E. Highland Avenue, Suite 12 Phoenix, AZ 8516 62-957-73 The information contained in this report has been obtained from sources deemed reliable and has incorporated fourth-party data which has not been independently verified by DAUM. While we do not doubt its accuracy, DAUM makes no guarantee or warranty as to its completeness or accuracy. Due to the dynamic (constantly changing) database which DAUM uses to compile and analyze markets contained in this report, previously published statistics may vary from the data published in this report. Statistics and data have been revised to reflect changes in the following categories: existing buildings being verified and added to the database, new or revised occupancy information gathered, new construction being added to the inventory, building demolitions and renovations, as well as other factors that would necessitate revisions to the data and the properties surveyed. This methodology allows us to present the most current and up-to-date information, trend analysis and comparative statistics for this report. Net Absorption The net change in occupied space over a given period of time, calculated by summing all the positive changes in occupancy (move ins) and subtracting all the negative changes in occupancy (move outs). Under Construction Planned buildings for which construction has started but have not yet been granted a Certificate of Occupancy. Planned buildings are not included. Completed in 217 New buildings with original construction completed in the year 217 and granted a Certificate of Occupancy. Renovated buildings are not included.

LOS ANGELES COUNTY OFFICE FOURTH QUARTER 217 QUICK STATS Direct Vacancy 13.2% Overall Vacancy 14.% Lease Rate FSG $3.24 Gross Absorption Under Construction MARKET TRENDS Change from Last Quarter Year Overall Vacancy Rental Rates Gross Absorption Under Construction Current Quarter 4,451,687 SF 796,38 SF OFFICE SUMMARY & OUTLOOK The Los Angeles County office market witnessed vacancy rates decrease during the quarter, moving from 14.1% to 13.9%. Average rents increased 7.3%, year over year, moving from $3.2 to $3.24 FSG. Gross absorption finished the quarter with 4.45 million square feet of activity, while net absorption posted a gain of 47, square feet. Under construction activity moved higher during the quarter with just under 8, square feet currently underway. Unemployment rates have declined from 4.7% to 4.2%, year over year, and is equal to California (4.2%) and above the U.S. average of 3.9%. The office market fundamentals remain solid, as the market has recorded positive net absorption in sixteen of the past eighteen quarters, totaling 1.9 million square feet. Job creation remains the key to increased office demand. In December, non-farm employment grew by 1.2%, year over year, adding 54,7 new jobs, which should keep vacancy rates moving lower with manageable amounts of new construction. The investment and sale market for office buildings in Los Angeles County continues to see strong activity levels as the total dollar sales volume in 216 was its strongest year ever with $9.6 billion, and followed that up with $8.1 billion in 217, its second highest total. Median sale prices finished down 1.4% on the year, but still remain near a 1- year high. The capital markets remain solid with plenty of liquidity, but we expect interest rates to rise further in the coming year. We expect vacancy levels to continue to trend lower in the coming quarters, with rents expected to increase 3% to 6% for most markets in the coming year. ECONOMIC STATS Current Month Previous Year Dec. 17 Dec. 16 Unemployment 4.2% 4.7% Rate (MSA) Change in # +8,3 +54,7 Of Jobs (MSA) % Change for +.2% +1.2% Jobs (MSA) VACANCY & NET ABSORPTION 2,, 1,5, 1,, 5, (5,) 18.% 17.% 16.% 15.% 14.% 13.% 12.% 11.% (1,,) Net Absorption SF Overall Vacancy 1.%

LOS ANGELES COUNTY OFFICE FOURTH QUARTER 217 VACANCY RENTAL RATES & TIME ON THE MARKET 18.% 17.% 16.% 15.% 14.% 13.% 12.% 11.% 1.% $3.5 $3.3 $3.1 $2.9 $2.7 $2.5 $2.3 $2.1 $1.9 $1.7 $1.5 16. 14. 12. 1. 8. 6. 4. 2.. Direct Vacancy Overall Vacancy Avg. Rent (FSG) Time on Market (Months) During the quarter, overall vacancy decreased from 14.1% to 13.9%. Of the four major markets within Los Angeles County, the LA-North market ended the quarter with the lowest total vacancy of 12.5%, followed by the San Gabriel Valley market at 13.%, the LA-West/South market at 13.4%, and the LA-Central/ Southeast market finishing the quarter at 15.6%. Since the fourth quarter of 216, overall vacancy has decreased from 14.% to 13.9%, and remains near its lowest level in more than a decade. ABSORPTION Average countywide asking rates increased 7.3%, year over year, moving from $3.2 FSG to $3.24 FSG. Of the four major markets within Los Angeles County, the LA-West/South market ended the quarter with the highest average asking rate of $3.67 FSG, followed by the LA-Central/Southeast market at $3.25 FSG, the LA-North market at $2.75 FSG, and the San Gabriel Valley market finishing the quarter at $2.26 FSG. During the quarter, average rental rates increased from $3.2 FSG to $3.24 FSG, up 1.3%. CONSTRUCTION ACTIVITY 6,, 3,, 5,, 2,5, 4,, 3,, 2,, 1,, (1,,) 2,, 1,5, 1,, 5, (2,,) Net Absorption SF Gross Absorption SF SF Newly Completed SF Under Construction During the quarter, gross absorption finished with 4.45 million square feet of activity, down 8% from the previous quarter, and lower by 5% compared to a year ago. Net absorption finished the quarter with a gain of 47, square feet of occupied space and gained 1.8 million square feet for the year. In 216, the market gained 2.5 million square feet, after gaining 2.6 million square feet in 215, +2.4 million square feet during 214 and +43, square feet in 213. Overall demand levels still remain strong and we expect demand to remain in positive territory as we move into the first quarter of 218, as the office sector continues its expansion. Under construction activity increased during the quarter with 8, square feet currently underway, as the market delivered 1.85 million square feet of new space for the year. In 216, the market added 781, square feet, after delivering 1.3 million square feet in 215, 329, square feet in 214 and 494, square feet during 213. During the past 5-years, the market has averaged 948, square feet of new construction, annually. New construction activity could see an uptick in the coming quarters, as solid demand, shrinking supply and rising rents will create more opportunities to develop more office projects throughout the county.

LOS ANGELES COUNTY OFFICE FOURTH QUARTER 217 MARKET SNAPSHOT Total Direct Direct Total Total Inventory Vacant Vacancy Vacant w/ Sublet Vacant w/ Sublet SUBMARKETS Square Footage Square Footage Rate Square Footage Rate Central/SE LA 86,934,884 13,176,611 15.2% 13,558,547 15.6% LA-North 56,924,721 6,73,932 11.8% 7,135,571 12.5% San Gabriel Valley 11,591,291 1,45,69 12.5% 1,54,684 13.% West / South 88,241,642 1,793,652 12.2% 11,832,46 13.4% L.A. County Totals 243,692,538 32,124,84 13.2% 34,31,262 14.% Office Market Inventory West / South 36% San Gabriel Valley 5% LA-North 23% Central/SE LA 36% 18.% 16.% 14.% 12.% 1.% 8.% 6.% 4.% 2.%.% Office Vacancy Rates Central/SE LA LA-North San Gabriel Valley Vacancy- Direct West / South Vacancy w/ Sublease Rate Average Low-High Square Feet Square Feet Gross Absorption Asking Rent Asking Rent Built in Under Square Feet SUBMARKETS FSG Range FSG 217 Construction Current Quarter Central/SE LA $3.25 $1.-$7. 1,125,199 77,25 1,52,433 LA-North $2.75 $1.25-$5. 89,158 1,6,941 San Gabriel Valley $2.26 $1.35-$3.1 28,888 West / South $3.67 $1.-$8.5 729,477 629,9 1,679,425 L.A. County Totals $3.24 $1.-$8.5 1,854,676 796,38 4,451,687 $4. Office Rental Rates 3,, New Construction Activity $3.5 $3. $2.5 $2. 2,5, 2,, 1,5, $1.5 1,, $1. $.5 $. Central/SE LA LA-North San Gabriel Valley West / South L.A. County Totals 5, Central/SE LA LA-North San Gabriel Valley West / South L.A. County Totals Average Asking Rent FSG Square Feet Built in 217 Square Feet Under Construction

LOS ANGELES COUNTY OFFICE FOURTH QUARTER 217 SOUTHERN CALIFORNIA OFFICE BUILDING SALE TREND ANALYSIS TOTAL SALES TRANSACTIONS Market 28 29 21 211 212 213 214 215 216 217 LA County 517 347 355 552 75 769 891 1,54 99 1,156 Orange County 247 13 151 25 294 347 334 425 392 41 Inland Empire 284 168 156 249 266 328 372 432 41 58 Ventura County 51 24 29 54 59 58 17 86 11 19 Totals 1,99 642 691 1,6 1,369 1,52 1,74 1,997 1,893 2,183 TOTAL TRANSACTION DOLLAR VALUE (MILLIONS) Bldg. SF 28 29 21 211 212 213 214 215 216 217 LA County $2,664.2 $753.7 $1,159.9 $2,72. $3,239.6 $5,953.1 $7,355.7 $4,843.9 $9,623.6 $8,57.2 Orange County $725.3 $364.9 $521.9 $625.9 $783.3 $1,385.1 $1,596.8 $2,797.9 $2,55.6 $2,273.2 Inland Empire $359.1 $85.7 $96. $13.2 $166.4 $237.5 $332.5 $642.6 $46.9 $554.2 Ventura County $93.9 $29.6 $81.3 $56.4 $43.2 $57.1 $246.9 $164.5 $169.4 $138.1 Totals $3,842.5 $1,233.9 $1,859.2 $2,884.6 $4,232.5 $7,632.8 $9,531.9 $8,448.9 $12,759.6 $11,22.6 TOTAL SQUARE FEET SOLD Bldg. SF 28 29 21 211 212 213 214 215 216 217 LA County 11,854,67 5,541,317 6,23,886 9,775,98 15,126,197 23,598,267 23,584,264 17,56,65 25,141,916 26,94,94 Orange County 3,283,136 2,23,473 3,59,352 3,865,353 6,76,432 7,31,297 8,173,268 12,235,143 11,838,955 9,14,83 Inland Empire 2,124,94 957,23 1,94,462 1,732,294 2,329,749 2,463,683 2,876,7 5,361,356 3,443,681 5,215,681 Ventura County 476,21 141,646 37,79 397,973 517,872 679,369 1,547,138 1,66,791 1,183,29 1,157,854 Totals 17,738,767 8,663,459 11,141,779 15,77,718 24,5,25 34,42,616 36,181,37 36,169,355 41,67,842 41,573,242 AVERAGE PRICE / SF Bldg. SF 28 29 21 211 212 213 214 215 216 217 LA County $273.87 $228.75 $235.36 $254.4 $264.17 $281.38 $344.77 $36.39 $429.23 $369.62 Orange County $293.51 $195.38 $182.39 $192.7 $211.65 $28.38 $27.78 $259.77 $264.8 $273.65 Inland Empire $212.76 $181.29 $13.41 $122.44 $135.29 $13.33 $144.25 $141.73 $17.69 $161.21 Ventura County $27.86 $248.34 $328.13 $182.62 $13.87 $14.6 $29.4 $189.67 $182.13 $189.78 Averages $268.41 $216.4 $21.92 $222.97 $235.55 $251.27 $292.9 $262.77 $353.81 $317.45 MEDIAN PRICE / SQUARE FOOT Bldg. SF 28 29 21 211 212 213 214 215 216 217 LA County $287.16 $26.95 $211.87 $24.94 $243.91 $233.31 $266.2 $283.91 $298.2 $293.7 Orange County $314.94 $224.41 $192.32 $216.15 $19. $24.49 $223.61 $246.57 $28.19 $259.2 Inland Empire $245.57 $187.29 $165.49 $135.16 $119.28 $125.7 $135.5 $132.88 $16.5 $169.4 Ventura County $253.62 $297.9 $22.17 $215.19 $183.47 $175.15 $18.41 $213.19 $19.56 $29.7 Median Average $286.42 $244.87 $2.89 $2.28 $216.91 $218.13 $242.37 $246.81 $278.51 $268.17 MEDIAN $ PSF INCREASE Bldg. SF 29 21 211 212 213 214 215 216 217 LA County -9.1% -18.8% -3.3% 19.% -4.3% 14.% 6.7% 5.% -1.4% Orange County -28.7% -14.3% 12.4% -12.1% 7.6% 9.4% 1.3% 13.6% -7.6% Inland Empire -23.7% -11.6% -18.3% -11.7% 4.9% 8.% -1.6% 2.8% 5.5% Ventura County 17.1% -31.9% 6.4% -14.7% -4.5% 3.% 18.2% -1.6% 1.% Totals -14.5% -18.% -.3% 8.3%.6% 11.1% 1.8% 12.8% -3.7% The following information has been obtained from sources deemed reliable. While we do not doubt its accuracy, we make no warranty or representation about it. This report contains verified arms-length transactions, but excludes all portfolio sales.

Median Price PSF Annual Increase Square Footage Sold Average Price PSF Number of Transactions Transaction $ Volume (Millions) LOS ANGELES COUNTY OFFICE FOURTH QUARTER 217 SOUTHERN CALIFORNIA OFFICE BUILDING SALE TREND ANALYSIS Number of Transactions Transaction Volume $ 1,4 $12,. 1,2 $1,. 1, 8 6 $8,. $6,. 4 $4,. 2 $2,. 28 29 21 211 212 213 214 215 216 217 LA County 517 347 355 552 75 769 891 1,54 99 1,156 Orange County 247 13 151 25 294 347 334 425 392 41 Inland Empire 284 168 156 249 266 328 372 432 41 58 Ventura County 51 24 29 54 59 58 17 86 11 19 $. 28 29 21 211 212 213 214 215 216 217 LA County $2,664.2 $753.7 $1,159.9 $2,72. $3,239.6 $5,953.1 $7,355.7 $4,843.9 $9,623.6 $8,57.2 Orange County $725.3 $364.9 $521.9 $625.9 $783.3 $1,385.1 $1,596.8 $2,797.9 $2,55.6 $2,273.2 Inland Empire $359.1 $85.7 $96. $13.2 $166.4 $237.5 $332.5 $642.6 $46.9 $554.2 Ventura County $93.9 $29.6 $81.3 $56.4 $43.2 $57.1 $246.9 $164.5 $169.4 $138.1 Square Footage Sold Average Price PSF 3,, $5. $45. 25,, 2,, 15,, $4. $35. $3. $25. 1,, $2. $15. 5,, $1. $5. 28 29 21 211 212 213 214 215 216 217 11,854,67 5,541,317 6,23,886 9,775,98 15,126,197 23,598,267 23,584,264 17,56,65 25,141,916 26,94,94 LA County Orange County 3,283,136 2,23,473 3,59,352 3,865,353 6,76,432 7,31,297 8,173,268 12,235,143 11,838,955 9,14,83 Inland Empire 2,124,94 957,23 1,94,462 1,732,294 2,329,749 2,463,683 2,876,7 5,361,356 3,443,681 5,215,681 Ventura County 476,21 141,646 37,79 397,973 517,872 679,369 1,547,138 1,66,791 1,183,29 1,157,854 Median Price PSF $. 28 29 21 211 212 213 214 215 216 217 LA County $273.87 $228.75 $235.36 $254.4 $264.17 $281.38 $344.77 $36.39 $429.23 $369.62 Orange County $293.51 $195.38 $182.39 $192.7 $211.65 $28.38 $27.78 $259.77 $264.8 $273.65 Inland Empire $212.76 $181.29 $13.41 $122.44 $135.29 $13.33 $144.25 $141.73 $17.69 $161.21 Ventura County $27.86 $248.34 $328.13 $182.62 $13.87 $14.6 $29.4 $189.67 $182.13 $189.78 % Change Median Price PSF $35. $325. $3. $275. $25. $225. $2. $175. $15. $125. $1. $75. $5. $25. $. 28 29 21 211 212 213 214 215 216 217 LA County $287.16 $26.95 $211.87 $24.94 $243.91 $233.31 $266.2 $283.91 $298.2 $293.7 Orange County $314.94 $224.41 $192.32 $216.15 $19. $24.49 $223.61 $246.57 $28.19 $259.2 Inland Empire $245.57 $187.29 $165.49 $135.16 $119.28 $125.7 $135.5 $132.88 $16.5 $169.4 Ventura County $253.62 $297.9 $22.17 $215.19 $183.47 $175.15 $18.41 $213.19 $19.56 $29.7 3.% 2.% 1.%.% -1.% -2.% -3.% -4.% 29 21 211 212 213 214 215 216 217 LA County -9.1% -18.8% -3.3% 19.% -4.3% 14.% 6.7% 5.% -1.4% Orange County -28.7% -14.3% 12.4% -12.1% 7.6% 9.4% 1.3% 13.6% -7.6% Inland Empire -23.7% -11.6% -18.3% -11.7% 4.9% 8.% -1.6% 2.8% 5.5% Ventura County 17.1% -31.9% 6.4% -14.7% -4.5% 3.% 18.2% -1.6% 1.%

LOS ANGELES COUNTY OFFICE FOURTH QUARTER 217 MARKET REPORT OVERVIEW SOUTHERN CALIFORNIA MARKET MAP METHODOLOGY & TERMINOLOGY Methodology Non-owner occupied, multi-tenant, office buildings that are 3, square feet and greater. Direct Vacant SF Space that is vacant and ready for occupancy by a user. The space is being offered for lease or sale directly from the landlord. Total Vacant W/ Sublet SF Space that is vacant and ready for occupancy by a user. The space is being offered for lease or sale by the landlord or for sublease by the current tenant. DAUM OFFICES LOS ANGELES, CALIFORNIA 81 S. Figueroa Street, Suite 6 Los Angeles, CA 917 213-626-911 LOS ANGELES NORTH, CALIFORNIA 2182 Burbank Boulevard, Suite 21 Woodland Hills, CA 91367 818-887-36 SANTA CLARITA VALLEY, CALIFORNIA 28494 Westinghouse Place, Suite 312 Valencia, CA 91355 661-75-2299 MID-COUNTIES, CALIFORNIA 1381 Cerritos Corporate Drive, Suite C Cerritos, CA 973 562-27-33 ORANGE COUNTY, CALIFORNIA 44 MacArthur Boulevard, Suite 95 Newport Beach, CA 9266 949-724-19 VENTURA & SANTA BARBARA, CALIFORNIA 751 Daily Drive, Suite 15 Camarillo, CA 931 85-987-8866 Direct Vacancy Rate Total vacant direct space (vacant space for lease or sale from the landlord or owner) divided by the total rentable square footage for existing buildings only. Vacancy W/ Sublet Rate Total vacant direct space and sublease space divided by the total rentable square footage for existing buildings only. Gross Absorption The total change in occupied space over a given period of time, counting space that is occupied but not space that is vacated by tenants. Gross absorption differs from leasing activity, which is the sum of all space leased over a certain period of time. SAN GABRIEL VALLEY, CALIFORNIA 13181 Crossroads Pkwy. N, Suite 1 City of Industry, CA 91746 562-695-7244 SOUTH BAY, CALIFORNIA 125 W. 19th Street, Suite 42 Gardena, CA 9248 31-538-67 INLAND EMPIRE, CALIFORNIA 3595 E. Inland Empire Boulevard, Bldg. 5 Ontario, CA 91764 99-98-1234 PHOENIX ARIZONA 172 E. Highland Avenue, Suite 12 Phoenix, AZ 8516 62-957-73 The information contained in this report has been obtained from sources deemed reliable and has incorporated fourth-party data which has not been independently verified by DAUM. While we do not doubt its accuracy, DAUM makes no guarantee or warranty as to its completeness or accuracy. Due to the dynamic (constantly changing) database which DAUM uses to compile and analyze markets contained in this report, previously published statistics may vary from the data published in this report. Statistics and data have been revised to reflect changes in the following categories: existing buildings being verified and added to the database, new or revised occupancy information gathered, new construction being added to the inventory, building demolitions and renovations, as well as other factors that would necessitate revisions to the data and the properties surveyed. This methodology allows us to present the most current and up-to-date information, trend analysis and comparative statistics for this report. Net Absorption The net change in occupied space over a given period of time, calculated by summing all the positive changes in occupancy (move ins) and subtracting all the negative changes in occupancy (move outs). Under Construction Planned buildings for which construction has started but have not yet been granted a Certificate of Occupancy. Planned buildings are not included. Completed in 217 New buildings with original construction completed in the year 217 and granted a Certificate of Occupancy. Renovated buildings are not included.

LOS ANGELES CENTRAL/SOUTHEAST INDUSTRIAL FOURTH QUARTER QUICK STATS Direct Vacancy 1.8% Overall Vacancy 1.9% Lease Rate NNN $.8 Gross Absorption Under Construction MARKET TRENDS Current Quarter 4,843,74 SF 2,379,513 SF Change from Last Quarter Year Overall Vacancy Rental Rates Gross Absorption Under Construction INDUSTRIAL SUMMARY & OUTLOOK The Central/SE Los Angeles industrial market witnessed vacancy rates decrease during the quarter, moving from 2.1% to 1.9%. Average asking rents increased 8.1%, year over year, moving from $.74nnn to $.8nnn. Gross absorption finished with 4.8 million square feet of activity during the quarter, while net absorption posted a gain of 745, square feet of occupied space. Under construction activity edged higher during the quarter, with 2.4 million square feet currently underway, as the market delivered 1.6 million square feet of new space for the year. Unemployment rates have declined from 4.7% to 4.2%, year over year, and is equal to California (4.2%) and above the U.S. average of 3.9%. The industrial market continues to see available supply remain at extremely low levels throughout the county, and while new construction has been at higher levels, it still has not been enough to keep pace with strong demand, resulting in vacancy remaining at all-time lows and rental rates still rising rapidly. Demand for industrial space will continue to be driven by domestic and global consumption levels. In 217, the Los Angeles and Long Beach Port container traffic recorded its highest container total ever with 16.89 million TEU s, up 8% from 216 and 7% higher than its second highest year during 26. The investment and sale market for industrial real estate in Los Angeles County remains extremely strong, as median prices have witnessed double-digit annual price growth from 214 to 217, and is up another 12.1% in 217. The capital markets remain solid with plenty of liquidity, but we expect interest rates to continue to rise in the coming year, which is expected to slow the doubledigit annual price growth. The overall industrial market remains a landlord controlled market, and we expect vacancy to remain in the 2% range, with rents expected to rise another 4% to 6% in the coming year. VACANCY & NET ABSORPTION ECONOMIC STATS Current Month Previous Year Dec. 17 Dec. 16 Unemployment 4.2% 4.7% Rate (MSA) Change in # +8,3 +54,7 Of Jobs (MSA) % Change for +.2% +1.2% Jobs (MSA) 2,, 1,5, 1,, 5, 4.5% 4.% 3.5% 3.% 2.5% 2.% 1.5% 1.%.5% (5,) Net Absorption SF Overall Vacancy.%

LOS ANGELES CENTRAL/SOUTHEAST INDUSTRIAL FOURTH QUARTER VACANCY RENTAL RATES & TIME ON THE MARKET 4.5% 4.% 3.5% 3.% 2.5% 2.% 1.5% 1.%.5%.% $.9 $.8 $.7 $.6 $.5 $.4 $.3 8. 7. 6. 5. 4. 3. 2. 1.. Direct Vacancy Overall Vacancy Avg. Rent (NNN) Time to Lease (Months) Overall vacancy rates (including sublease space) decreased from 2.1% to 1.9% during the quarter. Of the four submarkets within the LA-Central/Southeast market, the Commerce submarket ended the quarter with the lowest overall vacancy of.9%, followed by the Mid-Counties submarket at 1.6%, the Vernon submarket at 2.3%, and the Central-Los Angeles submarket finishing at 2.8%. Since the fourth quarter of 216, overall vacancy has decreased from 2.2% to 1.9%, and remains near its lowest level in more than a decade. ABSORPTION Standard industrial average asking rents increased 8.1%, year over year, moving from $.74nnn to $.8nnn. Of the four major submarkets within the LA-Central/SE market, the Central-Los Angeles submarket ended the quarter with the highest standard industrial rental rate of $1.nnn, followed by the Mid-Counties at $.73nnn, Commerce at $.66nnn and Vernon at $.64nnn. Average asking rents increased 3.9% from the previous quarter, moving from $.77nnn to $.8nnn, while the median time to lease remains at its lowest level in more than 5-years at 3-months. CONSTRUCTION ACTIVITY 8,, 3,, 7,, 2,5, 6,, 5,, 4,, 2,, 1,5, 3,, 2,, 1,, 1,, 5, (1,,) Net Absorption SF Gross Absorption SF SF Newly Completed SF Under Construction During the quarter, gross absorption finished with 4.8 million square feet of activity, down 14% from the previous quarter, but higher by 13% compared to a year ago. Net absorption posted a gain of 745, square feet of occupied space for the quarter, and gained 2.4 million square feet for the year. In 216, the market gained 1.1 million square feet, after gaining 3.7 million square feet in 215. During 214, the market gained 4. million square feet, after gaining another 2.8 million square feet in 213. Overall activity remains limited due to the lack of available supply and the limited amount of new construction. We expect demand levels to remain near current levels as we move into 218, as available space still remains extremely low. Under construction activity increased during the quarter with 2.4 million square feet currently underway, as the market delivered 1.6 million square feet of new space for the year. The market added 8, square feet of new space in 216, after delivering 1. million square feet during 215, and 1.4 million square feet during 214 and 213, respectively. During the past five years, the market has averaged nearly 1.3 million square feet of new deliveries, annually. New construction activity is expected to remain at similar levels in the coming quarters, as available industrial land still remains very scarce, coupled with very high land values and rising construction costs, making it a challenge for new development within this highly dense infill market.

LOS ANGELES CENTRAL/SOUTHEAST INDUSTRIAL FOURTH QUARTER MARKET SNAPSHOT Total Direct Direct Total Vacant Vacancy Inventory Vacant Vacancy w/ Sublet with Sublet SUBMARKETS Square Footage Square Footage Rate Square Footage Rate Central Los Angeles 9,892,523 2,473,566 2.7% 2,589,626 2.8% Commerce Area 75,831,533 63,526.8% 682,454.9% Mid-Counties 93,712,17 1,477,92 1.6% 1,54,466 1.6% Vernon Area 82,652,284 1,774,691 2.1% 1,863,799 2.3% L.A. Central / SE Totals 343,88,357 6,329,73 1.8% 6,64,345 1.9% Industrial Market Inventory Industrial Vacancy Rates 3.% Vernon Area 24% Mid- Counties 27% Central Los Angeles 27% Commerce Area 22% 2.5% 2.% 1.5% 1.%.5%.% Central Los Angeles Commerce Area Mid-Counties Vernon Area Direct Vacancy Vacancy with Sublet Average Average Square Feet Square Feet Gross Absorption Industrial R&D / Flex Built in Under Square Feet SUBMARKETS Rent Rent 217 Construction Current Quarter Central Los Angeles $1. $1.75 1,1,126 156,77 1,279,847 Commerce Area $.66 $1.18 553,61 Mid-Counties $.73 $.96 298,521 2,1,537 1,73,664 Vernon Area $.64 $.92 335,233 212,269 1,278,962 L.A. Central / SE Totals $.8 $1.28 1,634,88 2,379,513 4,843,74 Industrial Rental Rates New Construction Activity $2. $1.8 $1.6 $1.4 $1.2 $1. $.8 $.6 $.4 $.2 $. Central Los Angeles Commerce Area Mid-Counties Vernon Area L.A. Central / SE Totals 4,5, 4,, 3,5, 3,, 2,5, 2,, 1,5, 1,, 5, Central Los Angeles Commerce Area Mid-Counties Vernon Area L.A. Central / SE Totals Average Industrial Rent Average R&D / Flex Rent Square Feet Built in 217 Square Feet Under Construction

LOS ANGELES CENTRAL/SOUTHEAST INDUSTRIAL FOURTH QUARTER SOUTHERN CALIFORNIA INDUSTRIAL SALES TREND ANALYSIS TOTAL SALES TRANSACTIONS Market 28 29 21 211 212 213 214 215 216 217 LA County 99 523 79 1,43 1,442 1,195 1,346 1,59 1,49 1,723 Orange County 216 163 21 278 445 399 35 435 47 51 Inland Empire 389 293 288 383 56 57 594 679 646 848 Ventura County 65 59 53 83 92 1 19 111 137 131 Totals 1,579 1,38 1,26 1,787 2,539 2,264 2,399 2,815 2,662 3,23 TOTAL TRANSACTION DOLLAR VALUE (MILLIONS) Bldg. SF 28 29 21 211 212 213 214 215 216 217 LA County $2,9.7 $855. $1,238.9 $1,564.7 $2,145.2 $2,31.2 $2,297.7 $3,255.2 $2,947.6 $3,46.7 Orange County $525.4 $268.7 $425.3 $622.4 $646.1 $856.6 $96.6 $97.3 $1,269.3 $1,137.4 Inland Empire $1,315.6 $61.1 $879.4 $1,2.2 $94.1 $1,289.8 $1,488.8 $1,571. $1,396.4 $1,944. Ventura County $19. $41.7 $13.4 $16. $191.3 $117.5 $217.8 $152.9 $198.4 $221.2 Totals $4,4.7 $1,775.5 $2,647. $3,295.3 $3,886.7 $4,295.1 $4,965. $5,886.3 $5,811.7 $6,79.3 TOTAL SQUARE FEET SOLD Bldg. SF 28 29 21 211 212 213 214 215 216 217 LA County 21,54,775 12,72,239 22,111,368 21,441,991 32,187,47 23,536,52 23,69,595 32,79,793 23,877,886 29,429,84 Orange County 3,876,845 3,227,465 4,642,255 6,932,955 9,112,749 9,451,638 9,421,962 8,91,899 8,791,77 8,915,84 Inland Empire 2,3,636 12,127,851 19,912,668 18,246,26 18,677,764 23,322,756 22,993,923 21,78,64 15,61,71 2,829,822 Ventura County 1,334,814 446,275 1,217,138 1,386,321 3,496,396 1,669,355 3,123,237 1,85,294 2,79,797 2,767,523 Totals 46,27,7 28,53,83 47,883,429 48,7,293 63,474,379 57,98,269 59,229,717 64,612,626 5,981,1 61,942,953 AVERAGE PRICE / SF Bldg. SF 28 29 21 211 212 213 214 215 216 217 LA County $119.13 $93.17 $72.12 $97.74 $96.81 $11.18 $114.27 $131.77 $151.36 $157.36 Orange County $157.9 $124.68 $12.72 $12.64 $11.4 $18.89 $129.56 $152.2 $163.78 $169.95 Inland Empire $83.14 $54.88 $53.35 $62.4 $66.74 $7.91 $73.69 $9.36 $13.75 $116. Ventura County $132.16 $13.65 $92.43 $11.31 $68.76 $84.3 $93.17 $15.72 $1.23 $17.39 Averages $17.2 $81.4 $67.79 $85.12 $88.31 $89.78 $99.83 $119.88 $136.21 $143.3 MEDIAN PRICE / SQUARE FOOT Bldg. SF 28 29 21 211 212 213 214 215 216 217 LA County $14.98 $115.93 $13.97 $17.96 $18.36 $114.1 $127.19 $142. $158.46 $177.59 Orange County $19.78 $15. $126.25 $125.4 $126.6 $136.89 $145. $169. $179.67 $23.87 Inland Empire $123.55 $86.85 $75.66 $7.64 $72.62 $76.33 $88.42 $1. $118.1 $125.38 Ventura County $151.19 $159.57 $114.43 $14.9 $99.77 $97.1 $113.66 $124.7 $122.33 $14.46 Median Average $137.91 $18.1 $94.62 $96.13 $99.91 $12.13 $114.26 $131.7 $147.82 $162.16 MEDIAN $ PSF INCREASE Bldg. SF 29 21 211 212 213 214 215 216 217 LA County -17.8% -1.3% 3.8%.4% 5.3% 11.5% 11.6% 11.6% 12.1% Orange County -21.4% -15.8% -1.%.8% 8.6% 5.9% 16.6% 6.3% 13.5% Inland Empire -29.7% -12.9% -6.6% 2.8% 5.1% 15.8% 13.1% 18.% 6.2% Ventura County 5.5% -28.3% -9.% -4.2% -2.7% 17.1% 9.7% -1.9% 14.8% Totals -21.6% -12.5% 1.6% 3.9% 2.2% 11.9% 14.7% 12.8% 9.7% The following information has been obtained from sources deemed reliable. While we do not doubt its accuracy, we make no warranty or representation about it. This report contains verified arms-length transactions, but excludes all portfolio sales.

Median Price PSF Annual Increase Square Footage Sold Average Price PSF Number of Transactions Transaction $ Volume (Millions) LOS ANGELES CENTRAL/SOUTHEAST INDUSTRIAL FOURTH QUARTER SOUTHERN CALIFORNIA INDUSTRIAL SALES TREND ANALYSIS Number of Transactions Transaction Volume $ 2, 1,8 1,6 1,4 1,2 1, 8 6 4 2 $4,. $3,5. $3,. $2,5. $2,. $1,5. $1,. $5. 28 29 21 211 212 213 214 215 216 217 LA County 99 523 79 1,43 1,442 1,195 1,346 1,59 1,49 1,723 Orange County 216 163 21 278 445 399 35 435 47 51 Inland Empire 389 293 288 383 56 57 594 679 646 848 Ventura County 65 59 53 83 92 1 19 111 137 131 35,, 3,, Square Footage Sold $. 28 29 21 211 212 213 214 215 216 217 LA County $2,9.7 $855. $1,238.9 $1,564.7 $2,145.2 $2,31.2 $2,297.7 $3,255.2 $2,947.6 $3,46.7 Orange County $525.4 $268.7 $425.3 $622.4 $646.1 $856.6 $96.6 $97.3 $1,269.3 $1,137.4 Inland Empire $1,315.6 $61.1 $879.4 $1,2.2 $94.1 $1,289.8 $1,488.8 $1,571. $1,396.4 $1,944. Ventura County $19. $41.7 $13.4 $16. $191.3 $117.5 $217.8 $152.9 $198.4 $221.2 $18. $16. Average Price PSF 25,, 2,, $14. $12. $1. 15,, $8. 1,, 5,, $6. $4. $2. 28 29 21 211 212 213 214 215 216 217 21,54,775 12,72,239 22,111,368 21,441,991 32,187,47 23,536,52 23,69,595 32,79,793 23,877,886 29,429,84 LA County Orange County 3,876,845 3,227,465 4,642,255 6,932,955 9,112,749 9,451,638 9,421,962 8,91,899 8,791,77 8,915,84 Inland Empire 2,3,636 12,127,851 19,912,668 18,246,26 18,677,764 23,322,756 22,993,923 21,78,64 15,61,71 2,829,822 Ventura County 1,334,814 446,275 1,217,138 1,386,321 3,496,396 1,669,355 3,123,237 1,85,294 2,79,797 2,767,523 Median Price PSF $. 28 29 21 211 212 213 214 215 216 217 LA County $119.13 $93.17 $72.12 $97.74 $96.81 $11.18 $114.27 $131.77 $151.36 $157.36 Orange County $157.9 $124.68 $12.72 $12.64 $11.4 $18.89 $129.56 $152.2 $163.78 $169.95 Inland Empire $83.14 $54.88 $53.35 $62.4 $66.74 $7.91 $73.69 $9.36 $13.75 $116. Ventura County $132.16 $13.65 $92.43 $11.31 $68.76 $84.3 $93.17 $15.72 $1.23 $17.39 % Change Median Price PSF $225. $2. $175. $15. $125. 3.% 2.% 1.%.% $1. $75. $5. $25. $. 28 29 21 211 212 213 214 215 216 217 LA County $14.98 $115.93 $13.97 $17.96 $18.36 $114.1 $127.19 $142. $158.46 $177.59 Orange County $19.78 $15. $126.25 $125.4 $126.6 $136.89 $145. $169. $179.67 $23.87 Inland Empire $123.55 $86.85 $75.66 $7.64 $72.62 $76.33 $88.42 $1. $118.1 $125.38 Ventura County $151.19 $159.57 $114.43 $14.9 $99.77 $97.1 $113.66 $124.7 $122.33 $14.46-1.% -2.% -3.% -4.% 29 21 211 212 213 214 215 216 217 LA County -17.8% -1.3% 3.8%.4% 5.3% 11.5% 11.6% 11.6% 12.1% Orange County -21.4% -15.8% -1.%.8% 8.6% 5.9% 16.6% 6.3% 13.5% Inland Empire -29.7% -12.9% -6.6% 2.8% 5.1% 15.8% 13.1% 18.% 6.2% Ventura County 5.5% -28.3% -9.% -4.2% -2.7% 17.1% 9.7% -1.9% 14.8%

LOS ANGELES CENTRAL/SOUTHEAST INDUSTRIAL FOURTH QUARTER PORTS OF LONG BEACH & LOS ANGELES HISTORICAL CONTAINER STATS & TRENDS Quarter & Year Loaded Inbound (Imports) Loaded Outbound (Exports) Total Loaded Empties Total Containers % Change (Prior Qtr.) % Change (Prior Yr.) % Change (Prior 2 Yrs.) 4Q 217 2,236,512 864,951 3,11,463 1,329,531 4,43,994-2.% 6.7% 14.3% 3Q 217 2,339,73 811,292 3,15,365 1,372,386 4,522,752 1.1% 11.4% 6.% 2Q 217 2,117,463 826,178 2,943,641 1,163,392 4,17,33 7.3% 7.4% 5.% 1Q 217 1,886,23 868,29 2,754,259 1,72,668 3,826,927-7.9% 6.5% 1.1% 4Q 216 2,87,498 879,267 2,966,765 1,186,955 4,153,72 2.3% 7.1% 12.4% 3Q 216 2,99,2 853,33 2,952,233 1,17,223 4,59,456 6.1% -4.8% 7.6% 2Q 216 2,96,446 856,215 2,818,94 1,7,246 3,825,34 6.5% -2.2% 3.4% 1Q 216 2,94,859 845,44 2,598,231 995,27 3,593,438-7.3% 3.4% -.1% 4Q 215 1,991,444 826,65 2,736,45 1,14,516 3,876,965-9.1% 4.9% 1.4% 3Q 215 1,817,161 844,562 2,661,724 1,284,213 4,265,623 9.% 13.% 7.1% 2Q 215 1,754,371 812,98 2,567,351 1,82,394 3,913,298 12.6% 5.8% 2.1% 1Q 215 1,89,18 789,51 2,598,231 878,445 3,476,676-5.9% -3.4% -3.3% 4Q 214 1,931,724 759,835 2,691,559 1,4,845 3,696,44-2.% -3.4%.3% 3Q 214 1,928,187 757,74 2,685,261 1,88,28 3,773,541 2.% -5.2% -2.8% 2Q 214 1,949,84 787,366 2,736,45 963,69 3,7,59 2.8% -3.4% 5.1% 1Q 214 2,37,574 779,934 2,817,58 78,456 3,597,965-5.9%.1% 15.5% 4Q 213 2,138,563 795,898 2,934,461 89,168 3,824,629-3.9% 3.8% 22.6% 3Q 213 2,168,57 812,93 2,981,41 1,,38 3,981,718 3.9% 2.6% 16.% 2Q 213 2,128,54 834,75 2,963,254 868,882 3,832,136 6.6% 8.9% 6.5% 1Q 213 2,38,181 84,821 2,879,3 716,573 3,595,576-2.4% 15.5%.2% Ports of Long Beach & Los Angeles Historical Container Stats Container Trade in TEUs* 5,, 4,5, 4,, 3,5, 3,, 2,5, 2,, 1,5, 1,, 5, 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 29 29 29 29 21 21 21 21 211 211 211 211 212 212 212 212 213 2132 13213 214 214 214 214 215 215 215 215216 216 216 216217 217 217 217 Loaded Inbound (Imports) Loaded Outbound (Exports) Empties

LOS ANGELES CENTRAL/SOUTHEAST INDUSTRIAL FOURTH QUARTER MARKET REPORT OVERVIEW SOUTHERN CALIFORNIA MARKET MAP METHODOLOGY & TERMINOLOGY Methodology Industrial and flex (R & D) buildings that are 5, square feet and greater. Direct Vacant SF Space that is vacant and ready for occupancy by a user. The space is being offered for lease or sale directly from the landlord. Total Vacant W/ Sublet SF Space that is vacant and ready for occupancy by a user. The space is being offered for lease or sale by the landlord or for sublease by the current tenant. DAUM OFFICES LOS ANGELES, CALIFORNIA 81 S. Figueroa Street, Suite 6 Los Angeles, CA 917 213-626-911 LOS ANGELES NORTH, CALIFORNIA 2182 Burbank Boulevard, Suite 21 Woodland Hills, CA 91367 818-887-36 SANTA CLARITA VALLEY, CALIFORNIA 28494 Westinghouse Place, Suite 312 Valencia, CA 91355 661-75-2299 MID-COUNTIES, CALIFORNIA 1381 Cerritos Corporate Drive, Suite C Cerritos, CA 973 562-27-33 ORANGE COUNTY, CALIFORNIA 44 MacArthur Boulevard, Suite 95 Newport Beach, CA 9266 949-724-19 VENTURA & SANTA BARBARA, CALIFORNIA 751 Daily Drive, Suite 15 Camarillo, CA 931 85-987-8866 Direct Vacancy Rate Total vacant direct space (vacant space for lease or sale from the landlord or owner) divided by the total rentable square footage for existing buildings only. Vacancy W/ Sublet Rate Total vacant direct space and sublease space divided by the total rentable square footage for existing buildings only. Gross Absorption The total change in occupied space over a given period of time, counting space that is occupied but not space that is vacated by tenants. Gross absorption differs from leasing activity, which is the sum of all space leased over a certain period of time. SAN GABRIEL VALLEY, CALIFORNIA 13181 Crossroads Pkwy. N, Suite 1 City of Industry, CA 91746 562-695-7244 SOUTH BAY, CALIFORNIA 125 W. 19th Street, Suite 42 Gardena, CA 9248 31-538-67 INLAND EMPIRE, CALIFORNIA 3595 E. Inland Empire Boulevard, Bldg. 5 Ontario, CA 91764 99-98-1234 PHOENIX ARIZONA 172 E. Highland Avenue, Suite 12 Phoenix, AZ 8516 62-957-73 The information contained in this report has been obtained from sources deemed reliable and has incorporated fourth-party data which has not been independently verified by DAUM. While we do not doubt its accuracy, DAUM makes no guarantee or warranty as to its completeness or accuracy. Due to the dynamic (constantly changing) database which DAUM uses to compile and analyze markets contained in this report, previously published statistics may vary from the data published in this report. Statistics and data have been revised to reflect changes in the following categories: existing buildings being verified and added to the database, new or revised occupancy information gathered, new construction being added to the inventory, building demolitions and renovations, as well as other factors that would necessitate revisions to the data and the properties surveyed. This methodology allows us to present the most current and up-to-date information, trend analysis and comparative statistics for this report. Net Absorption The net change in occupied space over a given period of time, calculated by summing all the positive changes in occupancy (move ins) and subtracting all the negative changes in occupancy (move outs). Under Construction Planned buildings for which construction has started but have not yet been granted a Certificate of Occupancy. Planned buildings are not included. Completed in 217 New buildings with original construction completed in the year 217 and granted a Certificate of Occupancy. Renovated buildings are not included.

LOS ANGELES CENTAL/SOUTHEAST OFFICE FOURTH QUARTER 217 QUICK STATS Direct Vacancy 15.2% Overall Vacancy 15.6% Lease Rate FSG $3.25 Gross Absorption Under Construction MARKET TRENDS Change from Last Quarter Year Overall Vacancy Rental Rates Gross Absorption Under Construction Current Quarter 1,52,433 SF 77,25 SF OFFICE SUMMARY & OUTLOOK The L.A. Central/SE office market witnessed overall vacancy rates remain unchanged during the quarter, remaining at 15.6%. Average asking rents increased 9.8%, year over year, moving from $2.96 FSG to $3.25 FSG. Gross absorption finished the quarter with 1.5 million square feet of activity, while net absorption finished in positive territory, gaining 21, square feet of occupied space and just under 1. million square feet for the year. Under construction activity was unchanged during the quarter with 77,25 square feet currently underway, as the market delivered 1.1 million square feet of new space for the year. Unemployment rates have declined from 4.7% to 4.2%, year over year, and is equal to California (4.2%) and above the U.S. average of 3.9%. The office market fundamentals remain solid, as the market has recorded positive net absorption in sixteen of the past eighteen quarters, totaling 3.25 million square feet of occupied space gains. Job creation remains the key to increased office demand. In December, non-farm employment grew by 1.2%, year over year, adding 54,7 new jobs, which should keep vacancy rates moving lower with a small amount of new construction underway. The investment and sale market for office buildings in Los Angeles County continues to see strong activity levels as the total dollar sales volume in 216 was its strongest year ever with $9.6 billion, and followed that up with $8.1 billion in 217, its second highest total. Median sale prices finished down 1.4% on the year, but still remains near a 1-year high. The capital markets remain solid with plenty of liquidity, but we expect interest rates to rise further in the coming year. We expect vacancy levels to continue to trend lower in the coming quarters, with rents expected to increase 3% to 6% for most submarkets in the coming year. VACANCY & NET ABSORPTION ECONOMIC STATS Current Month Previous Year 8, 6, 18.% Dec. 17 Dec. 16 Unemployment 4.2% 4.7% Rate (MSA) Change in # +8,3 +54,7 Of Jobs (MSA) % Change for +.2% +1.2% Jobs (MSA) 4, 2, (2,) (4,) 17.% 16.% 15.% (6,) 14.% Net Absorption SF Overall Vacancy

LOS ANGELES CENTRAL/SOUTHEAST OFFICE FOURTH QUARTER 217 VACANCY RENTAL RATES & TIME ON THE MARKET 18.% 17.% 16.% 15.% 14.% $3.5 $3.3 $3.1 $2.9 $2.7 $2.5 $2.3 $2.1 $1.9 $1.7 $1.5 25. 2. 15. 1. 5.. Direct Vacancy Overall Vacancy Avg. Rent (FSG) Time to Lease (Months) Overall vacancy rates (including sublease space) were unchanged during the quarter, remaining at 15.6%. Of the four submarkets within the LA-Central/Southeast market, the Southeast L.A. submarket ended the quarter with the lowest overall vacancy of 11.%, followed by the Mid-Cities submarket at 11.4%, the Downtown L.A. submarket at 15.5%, and the Mid-Wilshire submarket finishing the quarter at 16.9%. Since the fourth quarter of 216, overall vacancy rates have remained flat at 15.6%, but still remains near its lowest level in more than a decade. ABSORPTION Average asking rates increased 9.8%, year over year, moving from $2.96 FSG to $3.25 FSG. Of the four submarkets within the LA- Central/SE market, the Downtown L.A submarket ended the quarter with the highest average asking rate of $3.4 FSG, followed by Mid-Wilshire at $3.12 FSG, the Mid-Cities at $2.36 FSG and the Southeast LA submarket at $2.6 FSG. Average asking rents increased 2.9% during the quarter, moving from $3.16 FSG to $3.25 FSG, while the median time to lease remains near a 5- year low. CONSTRUCTION ACTIVITY 2,5, 2,, 1,5, 2,, 1,8, 1,6, 1,4, 1,2, 1,, 5, 1,, 8, 6, 4, 2, (5,) (1,,) Net Absorption SF Gross Absorption SF SF Newly Completed SF Under Construction During the quarter, gross absorption finished with 1.5 million square feet of activity, down 6% from the previous quarter, but higher by 19% compared to a year ago. Net absorption posted a gain of 21, square feet during the quarter, and just under 1. million square feet for the year. During 216, the market gained 88, square feet, after gaining 4, square feet during 215. In 214, the market gained 43, square feet, after gaining another 85, square feet during 213. The resurgence and gentrification of downtown Los Angeles continues to drive additional demand to the office market, which should continue to keep demand at stronger levels, as we move into 218. Under construction activity was unchanged during the quarter with 77,25 square feet currently underway, as the market delivered 1.1 million square feet of new space for the year. In 216, the market added 419, square feet of new space after delivering 495, square feet during 215, 95, square feet in 214, and 424, square feet of new space in 213. New construction activity during the past five years has averaged 512, square feet, annually. We expect new construction activity to remain at similar levels as we move into the coming quarters.

LOS ANGELES CENTRAL/SOUTHEAST OFFICE FOURTH QUARTER 217 MARKET SNAPSHOT Total Direct Direct Total Total Inventory Vacant Vacancy Vacant w/ Sublet Vacant w/ Sublet SUBMARKETS Square Footage Square Footage Rate Square Footage Rate Downtown Los Angeles 55,276,881 8,34,842 15.% 8,584,494 15.5% Mid-Cities 2,996,247 339,1 11.3% 341,856 11.4% Mid-Wilshire 25,167,58 4,149,486 16.5% 4,247,687 16.9% Southeast Los Angeles 3,494,248 383,282 11.% 384,51 11.% L.A. Central / SE 86,934,884 13,176,611 15.2% 13,558,547 15.6% Office Market Inventory Mid-Wilshire 29% Mid-Cities 3% Southeast Los Angeles 4% Downtown Los Angeles 64% 18.% 16.% 14.% 12.% 1.% 8.% 6.% 4.% 2.%.% Downtown Los Angeles Office Vacancy Rates Mid-Cities Mid-Wilshire Southeast Los Angeles Vacancy- Direct Vacancy w/ Sublease Rate Average Low-High Square Feet Square Feet Gross Absorption Asking Rent Asking Rent Built in Under Square Feet SUBMARKETS FSG Range FSG 217 Construction Current Quarter Downtown Los Angeles $3.4 $1.-$7. 686,335 844,447 Mid-Cities $2.36 $1.15-$2.85 98,59 Mid-Wilshire $3.12 $1.3-$6. 438,864 476,845 Southeast Los Angeles $2.6 $1.15-$3.5 77,25 82,551 L.A. Central / SE $3.25 $1.-$7. 1,125,199 77,25 1,52,433 $4. Office Rental Rates 1,4, New Construction Activity $3.5 $3. $2.5 $2. $1.5 1,2, 1,, 8, 6, $1. 4, $.5 2, $. Downtown Los Angeles Mid-Cities Mid-Wilshire Southeast L.A. Central Los Angeles / SE Downtown Los Angeles Mid-Cities Mid-Wilshire Southeast L.A. Central Los Angeles / SE Average Asking Rent FSG Square Feet Built in 217 Square Feet Under Construction

LOS ANGELES CENTRAL/SOUTHEAST OFFICE FOURTH QUARTER 217 SOUTHERN CALIFORNIA OFFICE BUILDING SALE TREND ANALYSIS TOTAL SALES TRANSACTIONS Market 28 29 21 211 212 213 214 215 216 217 LA County 517 347 355 552 75 769 891 1,54 99 1,156 Orange County 247 13 151 25 294 347 334 425 392 41 Inland Empire 284 168 156 249 266 328 372 432 41 58 Ventura County 51 24 29 54 59 58 17 86 11 19 Totals 1,99 642 691 1,6 1,369 1,52 1,74 1,997 1,893 2,183 TOTAL TRANSACTION DOLLAR VALUE (MILLIONS) Bldg. SF 28 29 21 211 212 213 214 215 216 217 LA County $2,664.2 $753.7 $1,159.9 $2,72. $3,239.6 $5,953.1 $7,355.7 $4,843.9 $9,623.6 $8,57.2 Orange County $725.3 $364.9 $521.9 $625.9 $783.3 $1,385.1 $1,596.8 $2,797.9 $2,55.6 $2,273.2 Inland Empire $359.1 $85.7 $96. $13.2 $166.4 $237.5 $332.5 $642.6 $46.9 $554.2 Ventura County $93.9 $29.6 $81.3 $56.4 $43.2 $57.1 $246.9 $164.5 $169.4 $138.1 Totals $3,842.5 $1,233.9 $1,859.2 $2,884.6 $4,232.5 $7,632.8 $9,531.9 $8,448.9 $12,759.6 $11,22.6 TOTAL SQUARE FEET SOLD Bldg. SF 28 29 21 211 212 213 214 215 216 217 LA County 11,854,67 5,541,317 6,23,886 9,775,98 15,126,197 23,598,267 23,584,264 17,56,65 25,141,916 26,94,94 Orange County 3,283,136 2,23,473 3,59,352 3,865,353 6,76,432 7,31,297 8,173,268 12,235,143 11,838,955 9,14,83 Inland Empire 2,124,94 957,23 1,94,462 1,732,294 2,329,749 2,463,683 2,876,7 5,361,356 3,443,681 5,215,681 Ventura County 476,21 141,646 37,79 397,973 517,872 679,369 1,547,138 1,66,791 1,183,29 1,157,854 Totals 17,738,767 8,663,459 11,141,779 15,77,718 24,5,25 34,42,616 36,181,37 36,169,355 41,67,842 41,573,242 AVERAGE PRICE / SF Bldg. SF 28 29 21 211 212 213 214 215 216 217 LA County $273.87 $228.75 $235.36 $254.4 $264.17 $281.38 $344.77 $36.39 $429.23 $369.62 Orange County $293.51 $195.38 $182.39 $192.7 $211.65 $28.38 $27.78 $259.77 $264.8 $273.65 Inland Empire $212.76 $181.29 $13.41 $122.44 $135.29 $13.33 $144.25 $141.73 $17.69 $161.21 Ventura County $27.86 $248.34 $328.13 $182.62 $13.87 $14.6 $29.4 $189.67 $182.13 $189.78 Averages $268.41 $216.4 $21.92 $222.97 $235.55 $251.27 $292.9 $262.77 $353.81 $317.45 MEDIAN PRICE / SQUARE FOOT Bldg. SF 28 29 21 211 212 213 214 215 216 217 LA County $287.16 $26.95 $211.87 $24.94 $243.91 $233.31 $266.2 $283.91 $298.2 $293.7 Orange County $314.94 $224.41 $192.32 $216.15 $19. $24.49 $223.61 $246.57 $28.19 $259.2 Inland Empire $245.57 $187.29 $165.49 $135.16 $119.28 $125.7 $135.5 $132.88 $16.5 $169.4 Ventura County $253.62 $297.9 $22.17 $215.19 $183.47 $175.15 $18.41 $213.19 $19.56 $29.7 Median Average $286.42 $244.87 $2.89 $2.28 $216.91 $218.13 $242.37 $246.81 $278.51 $268.17 MEDIAN $ PSF INCREASE Bldg. SF 29 21 211 212 213 214 215 216 217 LA County -9.1% -18.8% -3.3% 19.% -4.3% 14.% 6.7% 5.% -1.4% Orange County -28.7% -14.3% 12.4% -12.1% 7.6% 9.4% 1.3% 13.6% -7.6% Inland Empire -23.7% -11.6% -18.3% -11.7% 4.9% 8.% -1.6% 2.8% 5.5% Ventura County 17.1% -31.9% 6.4% -14.7% -4.5% 3.% 18.2% -1.6% 1.% Totals -14.5% -18.% -.3% 8.3%.6% 11.1% 1.8% 12.8% -3.7% The following information has been obtained from sources deemed reliable. While we do not doubt its accuracy, we make no warranty or representation about it. This report contains verified arms-length transactions, but excludes all portfolio sales.

Median Price PSF Annual Increase Square Footage Sold Average Price PSF Number of Transactions Transaction $ Volume (Millions) LOS ANGELES CENTRAL/SOUTHEAST OFFICE FOURTH QUARTER 217 SOUTHERN CALIFORNIA OFFICE BUILDING SALE TREND ANALYSIS Number of Transactions Transaction Volume $ 1,4 $12,. 1,2 $1,. 1, 8 6 $8,. $6,. 4 $4,. 2 $2,. 28 29 21 211 212 213 214 215 216 217 LA County 517 347 355 552 75 769 891 1,54 99 1,156 Orange County 247 13 151 25 294 347 334 425 392 41 Inland Empire 284 168 156 249 266 328 372 432 41 58 Ventura County 51 24 29 54 59 58 17 86 11 19 $. 28 29 21 211 212 213 214 215 216 217 LA County $2,664.2 $753.7 $1,159.9 $2,72. $3,239.6 $5,953.1 $7,355.7 $4,843.9 $9,623.6 $8,57.2 Orange County $725.3 $364.9 $521.9 $625.9 $783.3 $1,385.1 $1,596.8 $2,797.9 $2,55.6 $2,273.2 Inland Empire $359.1 $85.7 $96. $13.2 $166.4 $237.5 $332.5 $642.6 $46.9 $554.2 Ventura County $93.9 $29.6 $81.3 $56.4 $43.2 $57.1 $246.9 $164.5 $169.4 $138.1 Square Footage Sold Average Price PSF 3,, $5. $45. 25,, 2,, 15,, $4. $35. $3. $25. 1,, $2. $15. 5,, $1. $5. 28 29 21 211 212 213 214 215 216 217 11,854,67 5,541,317 6,23,886 9,775,98 15,126,197 23,598,267 23,584,264 17,56,65 25,141,916 26,94,94 LA County Orange County 3,283,136 2,23,473 3,59,352 3,865,353 6,76,432 7,31,297 8,173,268 12,235,143 11,838,955 9,14,83 Inland Empire 2,124,94 957,23 1,94,462 1,732,294 2,329,749 2,463,683 2,876,7 5,361,356 3,443,681 5,215,681 Ventura County 476,21 141,646 37,79 397,973 517,872 679,369 1,547,138 1,66,791 1,183,29 1,157,854 Median Price PSF $. 28 29 21 211 212 213 214 215 216 217 LA County $273.87 $228.75 $235.36 $254.4 $264.17 $281.38 $344.77 $36.39 $429.23 $369.62 Orange County $293.51 $195.38 $182.39 $192.7 $211.65 $28.38 $27.78 $259.77 $264.8 $273.65 Inland Empire $212.76 $181.29 $13.41 $122.44 $135.29 $13.33 $144.25 $141.73 $17.69 $161.21 Ventura County $27.86 $248.34 $328.13 $182.62 $13.87 $14.6 $29.4 $189.67 $182.13 $189.78 % Change Median Price PSF $35. $325. $3. $275. $25. $225. $2. $175. $15. $125. $1. $75. $5. $25. $. 28 29 21 211 212 213 214 215 216 217 LA County $287.16 $26.95 $211.87 $24.94 $243.91 $233.31 $266.2 $283.91 $298.2 $293.7 Orange County $314.94 $224.41 $192.32 $216.15 $19. $24.49 $223.61 $246.57 $28.19 $259.2 Inland Empire $245.57 $187.29 $165.49 $135.16 $119.28 $125.7 $135.5 $132.88 $16.5 $169.4 Ventura County $253.62 $297.9 $22.17 $215.19 $183.47 $175.15 $18.41 $213.19 $19.56 $29.7 3.% 2.% 1.%.% -1.% -2.% -3.% -4.% 29 21 211 212 213 214 215 216 217 LA County -9.1% -18.8% -3.3% 19.% -4.3% 14.% 6.7% 5.% -1.4% Orange County -28.7% -14.3% 12.4% -12.1% 7.6% 9.4% 1.3% 13.6% -7.6% Inland Empire -23.7% -11.6% -18.3% -11.7% 4.9% 8.% -1.6% 2.8% 5.5% Ventura County 17.1% -31.9% 6.4% -14.7% -4.5% 3.% 18.2% -1.6% 1.%

LOS ANGELES CENTRAL/SOUTHEAST OFFICE FOURTH QUARTER 217 MARKET REPORT OVERVIEW SOUTHERN CALIFORNIA MARKET MAP METHODOLOGY & TERMINOLOGY Methodology Non-owner occupied, multi-tenant, office buildings that are 3, square feet and greater. Direct Vacant SF Space that is vacant and ready for occupancy by a user. The space is being offered for lease or sale directly from the landlord. Total Vacant W/ Sublet SF Space that is vacant and ready for occupancy by a user. The space is being offered for lease or sale by the landlord or for sublease by the current tenant. DAUM OFFICES LOS ANGELES, CALIFORNIA 81 S. Figueroa Street, Suite 6 Los Angeles, CA 917 213-626-911 LOS ANGELES NORTH, CALIFORNIA 2182 Burbank Boulevard, Suite 21 Woodland Hills, CA 91367 818-887-36 SANTA CLARITA VALLEY, CALIFORNIA 28494 Westinghouse Place, Suite 312 Valencia, CA 91355 661-75-2299 MID-COUNTIES, CALIFORNIA 1381 Cerritos Corporate Drive, Suite C Cerritos, CA 973 562-27-33 ORANGE COUNTY, CALIFORNIA 44 MacArthur Boulevard, Suite 95 Newport Beach, CA 9266 949-724-19 VENTURA & SANTA BARBARA, CALIFORNIA 751 Daily Drive, Suite 15 Camarillo, CA 931 85-987-8866 Direct Vacancy Rate Total vacant direct space (vacant space for lease or sale from the landlord or owner) divided by the total rentable square footage for existing buildings only. Vacancy W/ Sublet Rate Total vacant direct space and sublease space divided by the total rentable square footage for existing buildings only. Gross Absorption The total change in occupied space over a given period of time, counting space that is occupied but not space that is vacated by tenants. Gross absorption differs from leasing activity, which is the sum of all space leased over a certain period of time. SAN GABRIEL VALLEY, CALIFORNIA 13181 Crossroads Pkwy. N, Suite 1 City of Industry, CA 91746 562-695-7244 SOUTH BAY, CALIFORNIA 125 W. 19th Street, Suite 42 Gardena, CA 9248 31-538-67 INLAND EMPIRE, CALIFORNIA 3595 E. Inland Empire Boulevard, Bldg. 5 Ontario, CA 91764 99-98-1234 PHOENIX ARIZONA 172 E. Highland Avenue, Suite 12 Phoenix, AZ 8516 62-957-73 The information contained in this report has been obtained from sources deemed reliable and has incorporated fourth-party data which has not been independently verified by DAUM. While we do not doubt its accuracy, DAUM makes no guarantee or warranty as to its completeness or accuracy. Due to the dynamic (constantly changing) database which DAUM uses to compile and analyze markets contained in this report, previously published statistics may vary from the data published in this report. Statistics and data have been revised to reflect changes in the following categories: existing buildings being verified and added to the database, new or revised occupancy information gathered, new construction being added to the inventory, building demolitions and renovations, as well as other factors that would necessitate revisions to the data and the properties surveyed. This methodology allows us to present the most current and up-to-date information, trend analysis and comparative statistics for this report. Net Absorption The net change in occupied space over a given period of time, calculated by summing all the positive changes in occupancy (move ins) and subtracting all the negative changes in occupancy (move outs). Under Construction Planned buildings for which construction has started but have not yet been granted a Certificate of Occupancy. Planned buildings are not included. Completed in 217 New buildings with original construction completed in the year 217 and granted a Certificate of Occupancy. Renovated buildings are not included.

LOS ANGELES NORTH INDUSTRIAL FOURTH QUARTER 217 QUICK STATS Direct Vacancy 1.9% Overall Vacancy 2.2% Lease Rate NNN $.92 Gross Absorption Under Construction MARKET TRENDS Current Quarter 2,318,84 SF 564,654 SF Change from Last Quarter Year Overall Vacancy Rental Rates Gross Absorption Under Construction INDUSTRIAL SUMMARY & OUTLOOK The L.A. North industrial market witnessed vacancy rates decrease from 2.3% to 2.2%, during the quarter. Average asking rents increased 9.5%, year over year, moving from $.84nnn to $.92nnn. Gross absorption finished the quarter with 2.3 million square feet of activity, while net absorption finished in positive territory, gaining 541, square feet of occupied space. Under construction activity moved higher during the quarter, with 565, square feet of new space currently underway, as the market delivered 1.1 million square feet for the year. Unemployment rates have declined from 4.7% to 4.2%, year over year, and is equal to California (4.2%) and above the U.S. average of 3.9%. The industrial market continues to see available supply remain at extremely low levels, and while new construction has recently been at higher levels, it still has not been enough to keep pace with strong demand, resulting in vacancy remaining at all-time lows and rental rates still rising rapidly. Demand for industrial space will continue to be driven by domestic and global consumption levels. In 217, the Los Angeles and Long Beach Port container traffic recorded its highest container total ever with 16.89 million TEU s, up 8% from 216 and 7% higher than its second highest year during 26. The investment and sale market for industrial real estate in Los Angeles County remains extremely strong, as median prices have witnessed double-digit annual price growth from 214 to 217, and is up another 12.1% in 217. The capital markets remain solid with plenty of liquidity, but we expect interest rates to continue to rise in the coming year, which is expected to slow the double-digit annual price growth. The overall industrial market remains a landlord controlled market, and we expect vacancy to remain in the 2% range, with rents expected to rise another 4% to 6% in the coming year. VACANCY & NET ABSORPTION ECONOMIC STATS Current Month Previous Year Dec. 17 Dec. 16 Unemployment 4.2% 4.7% Rate (MSA) Change in # +8,3 +54,7 Of Jobs (MSA) % Change for +.2% +1.2% Jobs (MSA) 1,4, 1,2, 1,, 8, 6, 4, 2, (2,) (4,) (6,) 6.% 5.% 4.% 3.% 2.% 1.% (8,) Net Absorption SF Overall Vacancy.%

LOS ANGELES NORTH INDUSTRIAL FOURTH QUARTER 217 VACANCY RENTAL RATES & TIME ON THE MARKET 6.% $1. 9. 5.% 4.% 3.% 2.% 1.% $.9 $.8 $.7 $.6 $.5 $.4 8. 7. 6. 5. 4. 3. 2. 1..% $.3. Direct Vacancy Overall Vacancy Avg. Rent (NNN) Time to Lease (Months) Overall vacancy rates (including sublease space) decreased from 2.3% to 2.2%, during the quarter. Of the five submarkets within the Los Angeles North market, the Antelope Valley submarket ended the quarter with the lowest overall vacancy of 1.5%, followed by the SFV-East at 1.6%, the SFV-West at 2.1%, the Santa Clarita Valley at 2.7%, and the Conejo Valley finishing the quarter at 4.8%. Since the fourth quarter of 216, vacancy rates have increased from 1.9% to 2.1%, but still remains near its lowest level in more than a decade. ABSORPTION Standard industrial rental rates increased 9.5%, year over year, moving from $.84nnn to $.92nnn. Of the five submarkets within the LA-North market, the Conejo Valley submarket ended the quarter with the highest standard industrial rental rate of $1.35nnn, followed by the SFV-East at $1.nnn, the SFV-West at $.91nnn, the Santa Clarita Valley at $.79nnn, and the Antelope Valley finishing the quarter at $.55nnn. Average asking rents increased 2.2% from the previous quarter, moving from $.9nnn to $.92nnn. CONSTRUCTION ACTIVITY 3,5, 1,4, 3,, 1,2, 2,5, 2,, 1,5, 1,, 5, (5,) 1,, 8, 6, 4, 2, (1,,) Net Absorption SF Gross Absorption SF SF Newly Completed SF Under Construction During the quarter, gross absorption finished with 2.3 million square feet of activity, up 41% compared to the previous quarter, and higher by 32% compared to a year ago. Net absorption finished the quarter with a gain of 54, square feet of occupied space, and gained 465, square feet for the year. During 216, the market gained 46, square feet, after gaining 2.3 million square feet in 215 and 2. million square feet during 214. Overall demand in the market still remains very strong, but the lack of available space continues to keep overall activity and net absorption gains at lower levels. We expect demand to remain at similar levels as we move into the first quarter of 218. Under construction activity edged higher during the quarter, with 565, square feet currently underway, as the market delivered nearly 1.1 million square feet of new space for the year. The market delivered 121, square feet during 216, after adding 521, square feet of new space during 215. In 214, the market delivered 36, square feet after adding 144, square feet in 213. During the past 5-years, the market has averaged approximately 375, square feet of newly delivered space, annually. We expect to see more new construction activity in the Santa Clarita and Antelope Valleys, as we move into 218.

LOS ANGELES NORTH INDUSTRIAL FOURTH QUARTER 217 MARKET SNAPSHOT Total Direct Direct Total Vacant Vacancy Inventory Vacant Vacancy w/ Sublet with Sublet SUBMARKETS Square Footage Square Footage Rate Square Footage Rate Antelope Valley 1,279,431 158,688 1.5% 158,688 1.5% Conejo Valley 3,242,289 39,456 1.2% 87,494 2.7% Santa Clarita Valley 23,621,835 1,22,868 4.3% 1,125,69 4.8% SFV - East 82,827,638 1,27,982 1.5% 1,332,689 1.6% SFV - West 46,438,448 785,936 1.7% 994,677 2.1% L.A. North Totals 166,49,641 3,214,93 1.9% 3,698,617 2.2% Industrial Market Inventory SFV - West 28% SFV - East 5% Antelope Valley 6% Conejo Valley 2% Santa Clarita Valley 14% 6.% 5.% 4.% 3.% 2.% 1.% Industrial Vacancy Rates.% Antelope Valley Conejo Valley Direct Vacancy Santa SFV - East SFV - West Clarita Valley Vacancy with Sublet Average Average Square Feet Square Feet Gross Absorption Industrial R&D / Flex Built in Under Square Feet SUBMARKETS Rent Rent 217 Construction Current Quarter Antelope Valley $.55 $.75 77,43 69,25 Conejo Valley $1.35 $1.5 15,77 Santa Clarita Valley $.79 $1.1 7,142 487,611 391,333 SFV - East $1. $1.62 361,38 1,144,652 SFV - West $.91 $1.25 67,79 L.A. North Totals $.92 $1.29 1,61,18 564,654 2,318,84 $1.8 $1.6 $1.4 $1.2 $1. $.8 $.6 $.4 $.2 $. Antelope Valley Industrial Rental Rates Conejo Valley Santa Clarita Valley Average Industrial Rent SFV - East SFV - West L.A. North Totals Average R&D / Flex Rent 1,8, 1,6, 1,4, 1,2, 1,, 8, 6, 4, 2, New Construction Activity Antelope Valley Conejo Valley Square Feet Built in 217 Santa Clarita Valley SFV - East SFV - West L.A. North Totals Square Feet Under Construction

LOS ANGELES NORTH INDUSTRIAL FOURTH QUARTER 217 SOUTHERN CALIFORNIA INDUSTRIAL SALES TREND ANALYSIS TOTAL SALES TRANSACTIONS Market 28 29 21 211 212 213 214 215 216 217 LA County 99 523 79 1,43 1,442 1,195 1,346 1,59 1,49 1,723 Orange County 216 163 21 278 445 399 35 435 47 51 Inland Empire 389 293 288 383 56 57 594 679 646 848 Ventura County 65 59 53 83 92 1 19 111 137 131 Totals 1,579 1,38 1,26 1,787 2,539 2,264 2,399 2,815 2,662 3,23 TOTAL TRANSACTION DOLLAR VALUE (MILLIONS) Bldg. SF 28 29 21 211 212 213 214 215 216 217 LA County $2,9.7 $855. $1,238.9 $1,564.7 $2,145.2 $2,31.2 $2,297.7 $3,255.2 $2,947.6 $3,46.7 Orange County $525.4 $268.7 $425.3 $622.4 $646.1 $856.6 $96.6 $97.3 $1,269.3 $1,137.4 Inland Empire $1,315.6 $61.1 $879.4 $1,2.2 $94.1 $1,289.8 $1,488.8 $1,571. $1,396.4 $1,944. Ventura County $19. $41.7 $13.4 $16. $191.3 $117.5 $217.8 $152.9 $198.4 $221.2 Totals $4,4.7 $1,775.5 $2,647. $3,295.3 $3,886.7 $4,295.1 $4,965. $5,886.3 $5,811.7 $6,79.3 TOTAL SQUARE FEET SOLD Bldg. SF 28 29 21 211 212 213 214 215 216 217 LA County 21,54,775 12,72,239 22,111,368 21,441,991 32,187,47 23,536,52 23,69,595 32,79,793 23,877,886 29,429,84 Orange County 3,876,845 3,227,465 4,642,255 6,932,955 9,112,749 9,451,638 9,421,962 8,91,899 8,791,77 8,915,84 Inland Empire 2,3,636 12,127,851 19,912,668 18,246,26 18,677,764 23,322,756 22,993,923 21,78,64 15,61,71 2,829,822 Ventura County 1,334,814 446,275 1,217,138 1,386,321 3,496,396 1,669,355 3,123,237 1,85,294 2,79,797 2,767,523 Totals 46,27,7 28,53,83 47,883,429 48,7,293 63,474,379 57,98,269 59,229,717 64,612,626 5,981,1 61,942,953 AVERAGE PRICE / SF Bldg. SF 28 29 21 211 212 213 214 215 216 217 LA County $119.13 $93.17 $72.12 $97.74 $96.81 $11.18 $114.27 $131.77 $151.36 $157.36 Orange County $157.9 $124.68 $12.72 $12.64 $11.4 $18.89 $129.56 $152.2 $163.78 $169.95 Inland Empire $83.14 $54.88 $53.35 $62.4 $66.74 $7.91 $73.69 $9.36 $13.75 $116. Ventura County $132.16 $13.65 $92.43 $11.31 $68.76 $84.3 $93.17 $15.72 $1.23 $17.39 Averages $17.2 $81.4 $67.79 $85.12 $88.31 $89.78 $99.83 $119.88 $136.21 $143.3 MEDIAN PRICE / SQUARE FOOT Bldg. SF 28 29 21 211 212 213 214 215 216 217 LA County $14.98 $115.93 $13.97 $17.96 $18.36 $114.1 $127.19 $142. $158.46 $177.59 Orange County $19.78 $15. $126.25 $125.4 $126.6 $136.89 $145. $169. $179.67 $23.87 Inland Empire $123.55 $86.85 $75.66 $7.64 $72.62 $76.33 $88.42 $1. $118.1 $125.38 Ventura County $151.19 $159.57 $114.43 $14.9 $99.77 $97.1 $113.66 $124.7 $122.33 $14.46 Median Average $137.91 $18.1 $94.62 $96.13 $99.91 $12.13 $114.26 $131.7 $147.82 $162.16 MEDIAN $ PSF INCREASE Bldg. SF 29 21 211 212 213 214 215 216 217 LA County -17.8% -1.3% 3.8%.4% 5.3% 11.5% 11.6% 11.6% 12.1% Orange County -21.4% -15.8% -1.%.8% 8.6% 5.9% 16.6% 6.3% 13.5% Inland Empire -29.7% -12.9% -6.6% 2.8% 5.1% 15.8% 13.1% 18.% 6.2% Ventura County 5.5% -28.3% -9.% -4.2% -2.7% 17.1% 9.7% -1.9% 14.8% Totals -21.6% -12.5% 1.6% 3.9% 2.2% 11.9% 14.7% 12.8% 9.7% The following information has been obtained from sources deemed reliable. While we do not doubt its accuracy, we make no warranty or representation about it. This report contains verified arms-length transactions, but excludes all portfolio sales.

Median Price PSF Annual Increase Square Footage Sold Average Price PSF Number of Transactions Transaction $ Volume (Millions) LOS ANGELES NORTH INDUSTRIAL FOURTH QUARTER 217 SOUTHERN CALIFORNIA INDUSTRIAL SALES TREND ANALYSIS Number of Transactions Transaction Volume $ 2, 1,8 1,6 1,4 1,2 1, 8 6 4 2 $4,. $3,5. $3,. $2,5. $2,. $1,5. $1,. $5. 28 29 21 211 212 213 214 215 216 217 LA County 99 523 79 1,43 1,442 1,195 1,346 1,59 1,49 1,723 Orange County 216 163 21 278 445 399 35 435 47 51 Inland Empire 389 293 288 383 56 57 594 679 646 848 Ventura County 65 59 53 83 92 1 19 111 137 131 35,, 3,, Square Footage Sold $. 28 29 21 211 212 213 214 215 216 217 LA County $2,9.7 $855. $1,238.9 $1,564.7 $2,145.2 $2,31.2 $2,297.7 $3,255.2 $2,947.6 $3,46.7 Orange County $525.4 $268.7 $425.3 $622.4 $646.1 $856.6 $96.6 $97.3 $1,269.3 $1,137.4 Inland Empire $1,315.6 $61.1 $879.4 $1,2.2 $94.1 $1,289.8 $1,488.8 $1,571. $1,396.4 $1,944. Ventura County $19. $41.7 $13.4 $16. $191.3 $117.5 $217.8 $152.9 $198.4 $221.2 $18. $16. Average Price PSF 25,, 2,, $14. $12. $1. 15,, $8. 1,, 5,, $6. $4. $2. 28 29 21 211 212 213 214 215 216 217 21,54,775 12,72,239 22,111,368 21,441,991 32,187,47 23,536,52 23,69,595 32,79,793 23,877,886 29,429,84 LA County Orange County 3,876,845 3,227,465 4,642,255 6,932,955 9,112,749 9,451,638 9,421,962 8,91,899 8,791,77 8,915,84 Inland Empire 2,3,636 12,127,851 19,912,668 18,246,26 18,677,764 23,322,756 22,993,923 21,78,64 15,61,71 2,829,822 Ventura County 1,334,814 446,275 1,217,138 1,386,321 3,496,396 1,669,355 3,123,237 1,85,294 2,79,797 2,767,523 Median Price PSF $. 28 29 21 211 212 213 214 215 216 217 LA County $119.13 $93.17 $72.12 $97.74 $96.81 $11.18 $114.27 $131.77 $151.36 $157.36 Orange County $157.9 $124.68 $12.72 $12.64 $11.4 $18.89 $129.56 $152.2 $163.78 $169.95 Inland Empire $83.14 $54.88 $53.35 $62.4 $66.74 $7.91 $73.69 $9.36 $13.75 $116. Ventura County $132.16 $13.65 $92.43 $11.31 $68.76 $84.3 $93.17 $15.72 $1.23 $17.39 % Change Median Price PSF $225. $2. $175. $15. $125. 3.% 2.% 1.%.% $1. $75. $5. $25. $. 28 29 21 211 212 213 214 215 216 217 LA County $14.98 $115.93 $13.97 $17.96 $18.36 $114.1 $127.19 $142. $158.46 $177.59 Orange County $19.78 $15. $126.25 $125.4 $126.6 $136.89 $145. $169. $179.67 $23.87 Inland Empire $123.55 $86.85 $75.66 $7.64 $72.62 $76.33 $88.42 $1. $118.1 $125.38 Ventura County $151.19 $159.57 $114.43 $14.9 $99.77 $97.1 $113.66 $124.7 $122.33 $14.46-1.% -2.% -3.% -4.% 29 21 211 212 213 214 215 216 217 LA County -17.8% -1.3% 3.8%.4% 5.3% 11.5% 11.6% 11.6% 12.1% Orange County -21.4% -15.8% -1.%.8% 8.6% 5.9% 16.6% 6.3% 13.5% Inland Empire -29.7% -12.9% -6.6% 2.8% 5.1% 15.8% 13.1% 18.% 6.2% Ventura County 5.5% -28.3% -9.% -4.2% -2.7% 17.1% 9.7% -1.9% 14.8%

LOS ANGELES NORTH INDUSTRIAL FOURTH QUARTER 217 PORTS OF LONG BEACH & LOS ANGELES HISTORICAL CONTAINER STATS & TRENDS Quarter & Year Loaded Inbound (Imports) Loaded Outbound (Exports) Total Loaded Empties Total Containers % Change (Prior Qtr.) % Change (Prior Yr.) % Change (Prior 2 Yrs.) 4Q 217 2,236,512 864,951 3,11,463 1,329,531 4,43,994-2.% 6.7% 14.3% 3Q 217 2,339,73 811,292 3,15,365 1,372,386 4,522,752 1.1% 11.4% 6.% 2Q 217 2,117,463 826,178 2,943,641 1,163,392 4,17,33 7.3% 7.4% 5.% 1Q 217 1,886,23 868,29 2,754,259 1,72,668 3,826,927-7.9% 6.5% 1.1% 4Q 216 2,87,498 879,267 2,966,765 1,186,955 4,153,72 2.3% 7.1% 12.4% 3Q 216 2,99,2 853,33 2,952,233 1,17,223 4,59,456 6.1% -4.8% 7.6% 2Q 216 2,96,446 856,215 2,818,94 1,7,246 3,825,34 6.5% -2.2% 3.4% 1Q 216 2,94,859 845,44 2,598,231 995,27 3,593,438-7.3% 3.4% -.1% 4Q 215 1,991,444 826,65 2,736,45 1,14,516 3,876,965-9.1% 4.9% 1.4% 3Q 215 1,817,161 844,562 2,661,724 1,284,213 4,265,623 9.% 13.% 7.1% 2Q 215 1,754,371 812,98 2,567,351 1,82,394 3,913,298 12.6% 5.8% 2.1% 1Q 215 1,89,18 789,51 2,598,231 878,445 3,476,676-5.9% -3.4% -3.3% 4Q 214 1,931,724 759,835 2,691,559 1,4,845 3,696,44-2.% -3.4%.3% 3Q 214 1,928,187 757,74 2,685,261 1,88,28 3,773,541 2.% -5.2% -2.8% 2Q 214 1,949,84 787,366 2,736,45 963,69 3,7,59 2.8% -3.4% 5.1% 1Q 214 2,37,574 779,934 2,817,58 78,456 3,597,965-5.9%.1% 15.5% 4Q 213 2,138,563 795,898 2,934,461 89,168 3,824,629-3.9% 3.8% 22.6% 3Q 213 2,168,57 812,93 2,981,41 1,,38 3,981,718 3.9% 2.6% 16.% 2Q 213 2,128,54 834,75 2,963,254 868,882 3,832,136 6.6% 8.9% 6.5% 1Q 213 2,38,181 84,821 2,879,3 716,573 3,595,576-2.4% 15.5%.2% Ports of Long Beach & Los Angeles Historical Container Stats Container Trade in TEUs* 5,, 4,5, 4,, 3,5, 3,, 2,5, 2,, 1,5, 1,, 5, 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 29 29 29 29 21 21 21 21 211 211 211 211 212 212 212 212 213 2132 13213 214 214 214 214 215 215 215 215216 216 216 216217 217 217 217 Loaded Inbound (Imports) Loaded Outbound (Exports) Empties

LOS ANGELES NORTH INDUSTRIAL FOURTH QUARTER 217 MARKET REPORT OVERVIEW SOUTHERN CALIFORNIA MARKET MAP METHODOLOGY & TERMINOLOGY Methodology Industrial and flex (R & D) buildings that are 5, square feet and greater. Direct Vacant SF Space that is vacant and ready for occupancy by a user. The space is being offered for lease or sale directly from the landlord. Total Vacant W/ Sublet SF Space that is vacant and ready for occupancy by a user. The space is being offered for lease or sale by the landlord or for sublease by the current tenant. DAUM OFFICES LOS ANGELES, CALIFORNIA 81 S. Figueroa Street, Suite 6 Los Angeles, CA 917 213-626-911 LOS ANGELES NORTH, CALIFORNIA 2182 Burbank Boulevard, Suite 21 Woodland Hills, CA 91367 818-887-36 SANTA CLARITA VALLEY, CALIFORNIA 28494 Westinghouse Place, Suite 312 Valencia, CA 91355 661-75-2299 MID-COUNTIES, CALIFORNIA 1381 Cerritos Corporate Drive, Suite C Cerritos, CA 973 562-27-33 ORANGE COUNTY, CALIFORNIA 44 MacArthur Boulevard, Suite 95 Newport Beach, CA 9266 949-724-19 VENTURA & SANTA BARBARA, CALIFORNIA 751 Daily Drive, Suite 15 Camarillo, CA 931 85-987-8866 Direct Vacancy Rate Total vacant direct space (vacant space for lease or sale from the landlord or owner) divided by the total rentable square footage for existing buildings only. Vacancy W/ Sublet Rate Total vacant direct space and sublease space divided by the total rentable square footage for existing buildings only. Gross Absorption The total change in occupied space over a given period of time, counting space that is occupied but not space that is vacated by tenants. Gross absorption differs from leasing activity, which is the sum of all space leased over a certain period of time. SAN GABRIEL VALLEY, CALIFORNIA 13181 Crossroads Pkwy. N, Suite 1 City of Industry, CA 91746 562-695-7244 SOUTH BAY, CALIFORNIA 125 W. 19th Street, Suite 42 Gardena, CA 9248 31-538-67 INLAND EMPIRE, CALIFORNIA 3595 E. Inland Empire Boulevard, Bldg. 5 Ontario, CA 91764 99-98-1234 PHOENIX ARIZONA 172 E. Highland Avenue, Suite 12 Phoenix, AZ 8516 62-957-73 The information contained in this report has been obtained from sources deemed reliable and has incorporated fourth-party data which has not been independently verified by DAUM. While we do not doubt its accuracy, DAUM makes no guarantee or warranty as to its completeness or accuracy. Due to the dynamic (constantly changing) database which DAUM uses to compile and analyze markets contained in this report, previously published statistics may vary from the data published in this report. Statistics and data have been revised to reflect changes in the following categories: existing buildings being verified and added to the database, new or revised occupancy information gathered, new construction being added to the inventory, building demolitions and renovations, as well as other factors that would necessitate revisions to the data and the properties surveyed. This methodology allows us to present the most current and up-to-date information, trend analysis and comparative statistics for this report. Net Absorption The net change in occupied space over a given period of time, calculated by summing all the positive changes in occupancy (move ins) and subtracting all the negative changes in occupancy (move outs). Under Construction Planned buildings for which construction has started but have not yet been granted a Certificate of Occupancy. Planned buildings are not included. Completed in 217 New buildings with original construction completed in the year 217 and granted a Certificate of Occupancy. Renovated buildings are not included.

LOS ANGELES NORTH OFFICE FOURTH QUARTER 217 QUICK STATS Direct Vacancy 11.8% Overall Vacancy 12.5% Lease Rate FSG $2.75 Gross Absorption Under Construction MARKET TRENDS Current Quarter 1,6,941 SF 89,158 SF Change from Last Quarter Year Overall Vacancy Rental Rates Gross Absorption Under Construction OFFICE SUMMARY & OUTLOOK The L.A. North office market witnessed vacancy rates decrease during the quarter, moving from 12.6% to 12.5%. Average rents increased 3.8%, year over year, moving from $2.65 FSG to $2.75 FSG. Gross absorption totaled 1.1 million square feet of activity for the quarter, while net absorption finished in positive territory, gaining 31, square feet of occupied space. Under construction activity increased during the quarter, with 89, square feet currently underway, as the market did not deliver any new space in 217. Unemployment rates have declined from 4.7% to 4.2%, year over year, and is equal to California (4.2%) and above the U.S. average of 3.9%. The office market fundamentals remain solid, as the market has recorded positive net absorption in ten of the past eleven quarters, totaling 1.7 million square feet of occupied space gains. Job creation remains the key to increased office demand. In December, nonfarm employment grew by 1.2%, year over year, adding 54,7 new jobs, which should keep vacancy rates moving lower with a limited amount of new construction. The investment and sale market for office buildings in Los Angeles County continues to see strong activity levels as the total dollar sales volume in 216 was its strongest year ever with $9.6 billion, and followed that up with $8.1 billion in 217, its second highest total. Median sale prices finished down 1.4% on the year, but still remain near a 1-year high. The capital markets remain solid with plenty of liquidity, but we expect interest rates to rise further in the coming year. We expect vacancy levels to continue to trend lower in the coming quarters, with rents expected to increase 3% to 6% for most submarkets in the coming year. VACANCY & NET ABSORPTION ECONOMIC STATS Current Month Previous Year Dec. 17 Dec. 16 Unemployment 4.2% 4.7% Rate (MSA) Change in # +8,3 +54,7 Of Jobs (MSA) % Change for +.2% +1.2% Jobs (MSA) 4, 3, 2, 1, (1,) (2,) (3,) (4,) (5,) 19.% 17.% 15.% 13.% 11.% 9.% 7.% (6,) Net Absorption SF Overall Vacancy 5.%

LOS ANGELES NORTH OFFICE FOURTH QUARTER 217 VACANCY RENTAL RATES & TIME ON THE MARKET 17.% $2.8 16. 16.% 15.% $2.7 $2.6 14. 12. 1. 14.% $2.5 8. 13.% 12.% $2.4 $2.3 6. 4. 2. 11.% $2.2. Direct Vacancy Overall Vacancy Avg. Rent (FSG) Time to Lease (Months) Overall vacancy rates (including sublease space) decreased from 12.6% to 12.5%, during the quarter. Of the four submarkets within the LA-North market, the San Fernando Valley submarket ended the quarter with the lowest total vacancy of 11.5%, followed by the Tri-Cities at 12.7%, the Santa Clarita Valley at 16.3%, and the Antelope Valley submarket finishing the quarter at 24.7%. Since the fourth quarter of 216, overall vacancy rates have declined from 13.1% to 12.5%, and remains near its lowest level in more than a decade. Average asking rates increased 3.8%, year over year, moving from $2.65 FSG to $2.75 FSG. Of the four submarkets within the LA-North market, the Tri-Cities submarket ended the quarter with the highest average asking rate of $3.4 FSG, followed by the San Fernando Valley submarket at $2.5 FSG, the Santa Clarita Valley at $2.48 FSG, and the Antelope Valley finishing the quarter at $1.8 FSG. Average asking rents increased 1.1% during the quarter, moving from $2.72 FSG to $2.75 FSG. The median time to lease increased from 8. months to 9. months during the quarter. ABSORPTION CONSTRUCTION ACTIVITY 1,5, 45, 4, 1,, 35, 3, 5, 25, 2, 15, 1, (5,) 5, (1,,) Net Absorption SF Gross Absorption SF SF Newly Completed SF Under Construction During the quarter, gross absorption finished with 1.1 million square feet of activity, equal to the previous quarter, but lower by 12% compared to a year ago. Net absorption finished the quarter with a gain of 31, square feet of occupied space and gained 3, square feet for the year. In 216, the market gained 627, square feet, after gaining 76, square feet in 215. The market gained 46, square feet during 214, after losing 2, square feet during 213. Overall activity and demand levels remain solid, and we expect to see similar growth rates in 218. Under construction activity increased during the quarter, with 89,158 square feet currently underway, as the market did not deliver any new space in 217. In 216, the market added 26, square feet of new space, after delivering 38, square feet of new space during 215, 74, square feet in 214, and 41, square feet during 213. New construction completions have averaged approximately 135, square feet per year, during the past five years. New construction activity could begin to pick up in the coming quarters, if the market continues to see strong demand, declining vacancy and continued rent growth.

LOS ANGELES NORTH OFFICE FOURTH QUARTER 217 MARKET SNAPSHOT Total Direct Direct Total Total Inventory Vacant Vacancy Vacant w/ Sublet Vacant w/ Sublet SUBMARKETS Square Footage Square Footage Rate Square Footage Rate Antelope Valley 893,435 22,416 24.7% 22,416 24.7% San Fernando Valley 24,237,311 2,724,57 11.2% 2,798,813 11.5% Santa Clarita Valley 2,542,79 399,223 15.7% 413,671 16.3% Tri-Cities 29,251,185 3,36,236 11.5% 3,72,671 12.7% LA- North Totals 56,924,721 6,73,932 11.8% 7,135,571 12.5% Office Market Inventory 3.% Office Vacancy Rates Tri-Cities 51% Antelope Valley 2% Santa Clarita Valley 4% San Fernando Valley 43% 25.% 2.% 15.% 1.% 5.%.% Antelope Valley Vacancy- Direct San Fernando Valley Santa Clarita Valley Tri-Cities Vacancy w/ Sublease Rate Average Low-High Square Feet Square Feet Gross Absorption Asking Rent Asking Rent Built in Under Square Feet SUBMARKETS FSG Range FSG 217 Construction Current Quarter Antelope Valley $1.8 $1.3-$1.95 16,61 San Fernando Valley $2.5 $1.3-$4.7 89,158 486,96 Santa Clarita Valley $2.48 $1.75-$3. 44,912 Tri-Cities $3.4 $1.25-$5. 512,522 LA- North Totals $2.75 $1.25-$5. 89,158 1,6,941 Office Rental Rates New Construction Activity $3.5 $3. $2.5 $2. $1.5 $1. $.5 $. Antelope Valley San Fernando Valley Santa Clarita Valley Average Asking Rent FSG Tri-Cities 1, 9, 8, 7, 6, 5, 4, 3, 2, 1, Antelope Valley San Fernando Valley Square Feet Built in 217 Santa Clarita Valley Tri-Cities LA- North Totals Square Feet Under Construction

LOS ANGELES NORTH OFFICE FOURTH QUARTER 217 SOUTHERN CALIFORNIA OFFICE BUILDING SALE TREND ANALYSIS TOTAL SALES TRANSACTIONS Market 28 29 21 211 212 213 214 215 216 217 LA County 517 347 355 552 75 769 891 1,54 99 1,156 Orange County 247 13 151 25 294 347 334 425 392 41 Inland Empire 284 168 156 249 266 328 372 432 41 58 Ventura County 51 24 29 54 59 58 17 86 11 19 Totals 1,99 642 691 1,6 1,369 1,52 1,74 1,997 1,893 2,183 TOTAL TRANSACTION DOLLAR VALUE (MILLIONS) Bldg. SF 28 29 21 211 212 213 214 215 216 217 LA County $2,664.2 $753.7 $1,159.9 $2,72. $3,239.6 $5,953.1 $7,355.7 $4,843.9 $9,623.6 $8,57.2 Orange County $725.3 $364.9 $521.9 $625.9 $783.3 $1,385.1 $1,596.8 $2,797.9 $2,55.6 $2,273.2 Inland Empire $359.1 $85.7 $96. $13.2 $166.4 $237.5 $332.5 $642.6 $46.9 $554.2 Ventura County $93.9 $29.6 $81.3 $56.4 $43.2 $57.1 $246.9 $164.5 $169.4 $138.1 Totals $3,842.5 $1,233.9 $1,859.2 $2,884.6 $4,232.5 $7,632.8 $9,531.9 $8,448.9 $12,759.6 $11,22.6 TOTAL SQUARE FEET SOLD Bldg. SF 28 29 21 211 212 213 214 215 216 217 LA County 11,854,67 5,541,317 6,23,886 9,775,98 15,126,197 23,598,267 23,584,264 17,56,65 25,141,916 26,94,94 Orange County 3,283,136 2,23,473 3,59,352 3,865,353 6,76,432 7,31,297 8,173,268 12,235,143 11,838,955 9,14,83 Inland Empire 2,124,94 957,23 1,94,462 1,732,294 2,329,749 2,463,683 2,876,7 5,361,356 3,443,681 5,215,681 Ventura County 476,21 141,646 37,79 397,973 517,872 679,369 1,547,138 1,66,791 1,183,29 1,157,854 Totals 17,738,767 8,663,459 11,141,779 15,77,718 24,5,25 34,42,616 36,181,37 36,169,355 41,67,842 41,573,242 AVERAGE PRICE / SF Bldg. SF 28 29 21 211 212 213 214 215 216 217 LA County $273.87 $228.75 $235.36 $254.4 $264.17 $281.38 $344.77 $36.39 $429.23 $369.62 Orange County $293.51 $195.38 $182.39 $192.7 $211.65 $28.38 $27.78 $259.77 $264.8 $273.65 Inland Empire $212.76 $181.29 $13.41 $122.44 $135.29 $13.33 $144.25 $141.73 $17.69 $161.21 Ventura County $27.86 $248.34 $328.13 $182.62 $13.87 $14.6 $29.4 $189.67 $182.13 $189.78 Averages $268.41 $216.4 $21.92 $222.97 $235.55 $251.27 $292.9 $262.77 $353.81 $317.45 MEDIAN PRICE / SQUARE FOOT Bldg. SF 28 29 21 211 212 213 214 215 216 217 LA County $287.16 $26.95 $211.87 $24.94 $243.91 $233.31 $266.2 $283.91 $298.2 $293.7 Orange County $314.94 $224.41 $192.32 $216.15 $19. $24.49 $223.61 $246.57 $28.19 $259.2 Inland Empire $245.57 $187.29 $165.49 $135.16 $119.28 $125.7 $135.5 $132.88 $16.5 $169.4 Ventura County $253.62 $297.9 $22.17 $215.19 $183.47 $175.15 $18.41 $213.19 $19.56 $29.7 Median Average $286.42 $244.87 $2.89 $2.28 $216.91 $218.13 $242.37 $246.81 $278.51 $268.17 MEDIAN $ PSF INCREASE Bldg. SF 29 21 211 212 213 214 215 216 217 LA County -9.1% -18.8% -3.3% 19.% -4.3% 14.% 6.7% 5.% -1.4% Orange County -28.7% -14.3% 12.4% -12.1% 7.6% 9.4% 1.3% 13.6% -7.6% Inland Empire -23.7% -11.6% -18.3% -11.7% 4.9% 8.% -1.6% 2.8% 5.5% Ventura County 17.1% -31.9% 6.4% -14.7% -4.5% 3.% 18.2% -1.6% 1.% Totals -14.5% -18.% -.3% 8.3%.6% 11.1% 1.8% 12.8% -3.7% The following information has been obtained from sources deemed reliable. While we do not doubt its accuracy, we make no warranty or representation about it. This report contains verified arms-length transactions, but excludes all portfolio sales.

Median Price PSF Annual Increase Square Footage Sold Average Price PSF Number of Transactions Transaction $ Volume (Millions) LOS ANGELES NORTH OFFICE FOURTH QUARTER 217 SOUTHERN CALIFORNIA OFFICE BUILDING SALE TREND ANALYSIS Number of Transactions Transaction Volume $ 1,4 $12,. 1,2 $1,. 1, 8 6 $8,. $6,. 4 $4,. 2 $2,. 28 29 21 211 212 213 214 215 216 217 LA County 517 347 355 552 75 769 891 1,54 99 1,156 Orange County 247 13 151 25 294 347 334 425 392 41 Inland Empire 284 168 156 249 266 328 372 432 41 58 Ventura County 51 24 29 54 59 58 17 86 11 19 $. 28 29 21 211 212 213 214 215 216 217 LA County $2,664.2 $753.7 $1,159.9 $2,72. $3,239.6 $5,953.1 $7,355.7 $4,843.9 $9,623.6 $8,57.2 Orange County $725.3 $364.9 $521.9 $625.9 $783.3 $1,385.1 $1,596.8 $2,797.9 $2,55.6 $2,273.2 Inland Empire $359.1 $85.7 $96. $13.2 $166.4 $237.5 $332.5 $642.6 $46.9 $554.2 Ventura County $93.9 $29.6 $81.3 $56.4 $43.2 $57.1 $246.9 $164.5 $169.4 $138.1 Square Footage Sold Average Price PSF 3,, $5. $45. 25,, 2,, 15,, $4. $35. $3. $25. 1,, $2. $15. 5,, $1. $5. 28 29 21 211 212 213 214 215 216 217 11,854,67 5,541,317 6,23,886 9,775,98 15,126,197 23,598,267 23,584,264 17,56,65 25,141,916 26,94,94 LA County Orange County 3,283,136 2,23,473 3,59,352 3,865,353 6,76,432 7,31,297 8,173,268 12,235,143 11,838,955 9,14,83 Inland Empire 2,124,94 957,23 1,94,462 1,732,294 2,329,749 2,463,683 2,876,7 5,361,356 3,443,681 5,215,681 Ventura County 476,21 141,646 37,79 397,973 517,872 679,369 1,547,138 1,66,791 1,183,29 1,157,854 Median Price PSF $. 28 29 21 211 212 213 214 215 216 217 LA County $273.87 $228.75 $235.36 $254.4 $264.17 $281.38 $344.77 $36.39 $429.23 $369.62 Orange County $293.51 $195.38 $182.39 $192.7 $211.65 $28.38 $27.78 $259.77 $264.8 $273.65 Inland Empire $212.76 $181.29 $13.41 $122.44 $135.29 $13.33 $144.25 $141.73 $17.69 $161.21 Ventura County $27.86 $248.34 $328.13 $182.62 $13.87 $14.6 $29.4 $189.67 $182.13 $189.78 % Change Median Price PSF $35. $325. $3. $275. $25. $225. $2. $175. $15. $125. $1. $75. $5. $25. $. 28 29 21 211 212 213 214 215 216 217 LA County $287.16 $26.95 $211.87 $24.94 $243.91 $233.31 $266.2 $283.91 $298.2 $293.7 Orange County $314.94 $224.41 $192.32 $216.15 $19. $24.49 $223.61 $246.57 $28.19 $259.2 Inland Empire $245.57 $187.29 $165.49 $135.16 $119.28 $125.7 $135.5 $132.88 $16.5 $169.4 Ventura County $253.62 $297.9 $22.17 $215.19 $183.47 $175.15 $18.41 $213.19 $19.56 $29.7 3.% 2.% 1.%.% -1.% -2.% -3.% -4.% 29 21 211 212 213 214 215 216 217 LA County -9.1% -18.8% -3.3% 19.% -4.3% 14.% 6.7% 5.% -1.4% Orange County -28.7% -14.3% 12.4% -12.1% 7.6% 9.4% 1.3% 13.6% -7.6% Inland Empire -23.7% -11.6% -18.3% -11.7% 4.9% 8.% -1.6% 2.8% 5.5% Ventura County 17.1% -31.9% 6.4% -14.7% -4.5% 3.% 18.2% -1.6% 1.%

LOS ANGELES NORTH OFFICE FOURTH QUARTER 217 MARKET REPORT OVERVIEW SOUTHERN CALIFORNIA MARKET MAP METHODOLOGY & TERMINOLOGY Methodology Non-owner occupied, multi-tenant, office buildings that are 3, square feet and greater. Direct Vacant SF Space that is vacant and ready for occupancy by a user. The space is being offered for lease or sale directly from the landlord. Total Vacant W/ Sublet SF Space that is vacant and ready for occupancy by a user. The space is being offered for lease or sale by the landlord or for sublease by the current tenant. DAUM OFFICES LOS ANGELES, CALIFORNIA 81 S. Figueroa Street, Suite 6 Los Angeles, CA 917 213-626-911 LOS ANGELES NORTH, CALIFORNIA 2182 Burbank Boulevard, Suite 21 Woodland Hills, CA 91367 818-887-36 SANTA CLARITA VALLEY, CALIFORNIA 28494 Westinghouse Place, Suite 312 Valencia, CA 91355 661-75-2299 MID-COUNTIES, CALIFORNIA 1381 Cerritos Corporate Drive, Suite C Cerritos, CA 973 562-27-33 ORANGE COUNTY, CALIFORNIA 44 MacArthur Boulevard, Suite 95 Newport Beach, CA 9266 949-724-19 VENTURA & SANTA BARBARA, CALIFORNIA 751 Daily Drive, Suite 15 Camarillo, CA 931 85-987-8866 Direct Vacancy Rate Total vacant direct space (vacant space for lease or sale from the landlord or owner) divided by the total rentable square footage for existing buildings only. Vacancy W/ Sublet Rate Total vacant direct space and sublease space divided by the total rentable square footage for existing buildings only. Gross Absorption The total change in occupied space over a given period of time, counting space that is occupied but not space that is vacated by tenants. Gross absorption differs from leasing activity, which is the sum of all space leased over a certain period of time. SAN GABRIEL VALLEY, CALIFORNIA 13181 Crossroads Pkwy. N, Suite 1 City of Industry, CA 91746 562-695-7244 SOUTH BAY, CALIFORNIA 125 W. 19th Street, Suite 42 Gardena, CA 9248 31-538-67 INLAND EMPIRE, CALIFORNIA 3595 E. Inland Empire Boulevard, Bldg. 5 Ontario, CA 91764 99-98-1234 PHOENIX ARIZONA 172 E. Highland Avenue, Suite 12 Phoenix, AZ 8516 62-957-73 The information contained in this report has been obtained from sources deemed reliable and has incorporated fourth-party data which has not been independently verified by DAUM. While we do not doubt its accuracy, DAUM makes no guarantee or warranty as to its completeness or accuracy. Due to the dynamic (constantly changing) database which DAUM uses to compile and analyze markets contained in this report, previously published statistics may vary from the data published in this report. Statistics and data have been revised to reflect changes in the following categories: existing buildings being verified and added to the database, new or revised occupancy information gathered, new construction being added to the inventory, building demolitions and renovations, as well as other factors that would necessitate revisions to the data and the properties surveyed. This methodology allows us to present the most current and up-to-date information, trend analysis and comparative statistics for this report. Net Absorption The net change in occupied space over a given period of time, calculated by summing all the positive changes in occupancy (move ins) and subtracting all the negative changes in occupancy (move outs). Under Construction Planned buildings for which construction has started but have not yet been granted a Certificate of Occupancy. Planned buildings are not included. Completed in 217 New buildings with original construction completed in the year 217 and granted a Certificate of Occupancy. Renovated buildings are not included.

LOS ANGELES SAN GABRIEL VALLEY INDUSTRIAL FOURTH QUARTER 217 QUICK STATS Direct Vacancy 1.8% Overall Vacancy 2.% Lease Rate NNN $.73 Gross Absorption Under Construction MARKET TRENDS Current Quarter 2,39,496 SF 79,669 SF Change from Last Quarter Year Overall Vacancy Rental Rates Gross Absorption Under Construction INDUSTRIAL SUMMARY & OUTLOOK The San Gabriel Valley industrial market witnessed vacancy rates remain unchanged during the quarter, remaining at 2.%. Average rents increased 9.%, year over year, moving from $.67nnn to $.73nnn. Gross absorption finished the quarter with 2.4 million square feet of activity, while net absorption posted a gain of 6, square feet of occupied space. Under construction activity moved lower during the quarter with 1.3 million square feet currently underway, as the market delivered 2.3 million square feet of new space for the year. Unemployment rates have declined from 4.7% to 4.2%, year over year, and is equal to California (4.7%) and above the U.S. average of 3.9%. The industrial market continues to see available supply remain extremely low and while new construction has increased, it still remains at relatively low levels, which continues to keep vacancy near all-time lows and rental rates on the rise. Demand for industrial space will continue to be driven by domestic and global consumption levels. In 217, the Los Angeles and Long Beach Port container traffic recorded its highest container total ever with 16.89 million TEU s, up 8% from 216 totals and 7% higher than its second highest year during 26. The investment and sale market for industrial real estate in Los Angeles County remains extremely strong, as median prices have witnessed doubledigit annual price growth from 214 to 217, and is up another 12.1% in 217. The capital markets remain solid with plenty of liquidity, but we expect interest rates to continue to rise in the coming year, which is expected to slow the double-digit annual price growth. The overall industrial market remains a landlord controlled market, and we expect vacancy to remain in the 2% range, with rents expected to rise another 4% to 6% in the coming year. ECONOMIC STATS Current Month Previous Year Dec. 17 Dec. 16 Unemployment 4.2% 4.7% Rate (MSA) Change in # +8,3 +54,7 Of Jobs (MSA) % Change for +.2% +1.2% Jobs (MSA) VACANCY & NET ABSORPTION 3,, 2,5, 2,, 1,5, 1,, 5, (5,) (1,,) 6.% 5.% 4.% 3.% 2.% 1.% (1,5,) Net Absorption SF Overall Vacancy.%

LOS ANGELES SAN GABRIEL VALLEY INDUSTRIAL FOURTH QUARTER 217 VACANCY RENTAL RATES & TIME ON THE MARKET 6.% 5.% 4.% 3.% 2.% 1.%.% $.8 $.75 $.7 $.65 $.6 $.55 $.5 $.45 $.4 $.35 $.3 8. 7. 6. 5. 4. 3. 2. 1.. Direct Vacancy Overall vacancy rates (including sublease space) were unchanged during the quarter, remaining at 2.%. Of the five submarkets within the San Gabriel Valley market, the Southwest SGV submarket ended the quarter with the lowest total vacancy of 1.3%, followed by the Eastern SGV and Northwest SGV submarkets at 1.4%, the Lower SGV at 1.5%, and the Upper SGV finishing the quarter at 4.7%. Since the fourth quarter of 216, overall vacancy rates have decreased from 2.2% to 2.%, and remains near an all-time low. ABSORPTION Overall Vacancy Avg. Rent (NNN) Time on Market (Months) Standard industrial rental rates increased 9.%, year over year, moving from $.67nnn to $.73nnn. Of the five major submarkets within the San Gabriel Valley market, the Southwest SGV submarket ended the quarter with the highest standard industrial rental rate of $.76nnn, followed by the Lower SGV at $.75nnn, the Upper SGV submarket at $.74nnn, the Northwest SGV submarket at $.7nnn, and the Eastern SGV at $.63nnn. Average asking rents increased 2.8% during the quarter, moving from $.71nnn to $.73nnn, as the median time to lease decreased from 3.5 months to 2.3 months. CONSTRUCTION ACTIVITY 5,, 3,, 4,, 2,5, 3,, 2,, 2,, 1,5, 1,, 1,, 5, (1,,) (2,,) Net Absorption SF Gross Absorption SF SF Newly Completed SF Under Construction During the quarter, gross absorption finished with 2.4 million square feet of activity, down 16% from the previous quarter, but higher by 49% compared to a year ago. Net absorption finished the quarter in positive territory, gaining 6, square feet of occupied space and gained 2.7 million square feet for the year. In 216, the market gained 1.2 million square feet, after gaining 2.6 million square feet in 215, +1.9 million square feet in 214, and a gain of 2.2 million square feet during 213. Overall demand and activity increased, as 2.3 million square feet of new product was completed during 217. Demand remains extremely strong and is reliant on new supply being delivered to continue to grow in this very tight market. Under construction activity decreased during the quarter, with 79, square feet currently underway, as the market delivered 2.3 million square feet of new space for the year. During 216, the market added 1.4 million square feet of new space, after delivering 1.7 million square feet of new space in 215. During 214, the market added 456, square feet of new space after delivering 258, square feet during 213. During the past five years, the market has averaged 1.2 million square feet of new construction, annually. We expect new construction to remain active in the coming quarters, as the available supply of high quality space still remains extremely low.

LOS ANGELES SAN GABRIEL VALLEY INDUSTRIAL FOURTH QUARTER 217 MARKET SNAPSHOT Total Direct Direct Total Vacant Vacancy Inventory Vacant Vacancy w/ Sublet with Sublet SUBMARKETS Square Footage Square Footage Rate Square Footage Rate Eastern SGV 27,415,647 377,32 1.4% 396,927 1.4% Lower SGV 84,631,932 1,116,36 1.3% 1,243,544 1.5% Northwest SGV 22,693,525 294,666 1.3% 316,96 1.4% Southwest SGV 1,558,896 142,343 1.3% 142,343 1.3% Upper SGV 26,86,534 1,128,38 4.2% 1,266,399 4.7% San Gabriel Valley Totals 172,16,534 3,58,79 1.8% 3,366,119 2.% Southwest SGV 6% Upper SGV 16% Northwest SGV 13% Industrial Market Inventory Eastern SGV 16% Lower SGV 49% 5.% 4.5% 4.% 3.5% 3.% 2.5% 2.% 1.5% 1.%.5%.% Eastern SGV Industrial Vacancy Rates Lower SGV Northwest SGV Southwest SGV Upper SGV Direct Vacancy Vacancy with Sublet Average Average Square Feet Square Feet Gross Absorption Industrial R&D / Flex Built in Under Square Feet SUBMARKETS Rent Rent 217 Construction Current Quarter Eastern SGV $.63 $.85 833,493 328,667 Lower SGV $.75 $.97 6,626 59,282 1,7,688 Northwest SGV $.7 $1. 317,78 Southwest SGV $.76 $.92 13, 121,64 Upper SGV $.74 $.96 884,292 2,387 552,459 San Gabriel Valley Totals $.73 $.95 2,331,411 79,669 2,39,496 Industrial Rental Rates New Construction Activity $1.2 3,5, $1. 3,, $.8 2,5, $.6 $.4 $.2 2,, 1,5, 1,, 5, $. Eastern SGV Lower SGV Northwest SGV Southwest SGV Upper SGV San Gabriel Valley Totals Eastern SGV Lower SGV Northwest SGV Southwest SGV Upper SGV San Gabriel Valley Totals Average Industrial Rent Average R&D / Flex Rent Square Feet Built in 217 Square Feet Under Construction

LOS ANGELES SAN GABRIEL VALLEY INDUSTRIAL FOURTH QUARTER 217 SOUTHERN CALIFORNIA INDUSTRIAL SALES TREND ANALYSIS TOTAL SALES TRANSACTIONS Market 28 29 21 211 212 213 214 215 216 217 LA County 99 523 79 1,43 1,442 1,195 1,346 1,59 1,49 1,723 Orange County 216 163 21 278 445 399 35 435 47 51 Inland Empire 389 293 288 383 56 57 594 679 646 848 Ventura County 65 59 53 83 92 1 19 111 137 131 Totals 1,579 1,38 1,26 1,787 2,539 2,264 2,399 2,815 2,662 3,23 TOTAL TRANSACTION DOLLAR VALUE (MILLIONS) Bldg. SF 28 29 21 211 212 213 214 215 216 217 LA County $2,9.7 $855. $1,238.9 $1,564.7 $2,145.2 $2,31.2 $2,297.7 $3,255.2 $2,947.6 $3,46.7 Orange County $525.4 $268.7 $425.3 $622.4 $646.1 $856.6 $96.6 $97.3 $1,269.3 $1,137.4 Inland Empire $1,315.6 $61.1 $879.4 $1,2.2 $94.1 $1,289.8 $1,488.8 $1,571. $1,396.4 $1,944. Ventura County $19. $41.7 $13.4 $16. $191.3 $117.5 $217.8 $152.9 $198.4 $221.2 Totals $4,4.7 $1,775.5 $2,647. $3,295.3 $3,886.7 $4,295.1 $4,965. $5,886.3 $5,811.7 $6,79.3 TOTAL SQUARE FEET SOLD Bldg. SF 28 29 21 211 212 213 214 215 216 217 LA County 21,54,775 12,72,239 22,111,368 21,441,991 32,187,47 23,536,52 23,69,595 32,79,793 23,877,886 29,429,84 Orange County 3,876,845 3,227,465 4,642,255 6,932,955 9,112,749 9,451,638 9,421,962 8,91,899 8,791,77 8,915,84 Inland Empire 2,3,636 12,127,851 19,912,668 18,246,26 18,677,764 23,322,756 22,993,923 21,78,64 15,61,71 2,829,822 Ventura County 1,334,814 446,275 1,217,138 1,386,321 3,496,396 1,669,355 3,123,237 1,85,294 2,79,797 2,767,523 Totals 46,27,7 28,53,83 47,883,429 48,7,293 63,474,379 57,98,269 59,229,717 64,612,626 5,981,1 61,942,953 AVERAGE PRICE / SF Bldg. SF 28 29 21 211 212 213 214 215 216 217 LA County $119.13 $93.17 $72.12 $97.74 $96.81 $11.18 $114.27 $131.77 $151.36 $157.36 Orange County $157.9 $124.68 $12.72 $12.64 $11.4 $18.89 $129.56 $152.2 $163.78 $169.95 Inland Empire $83.14 $54.88 $53.35 $62.4 $66.74 $7.91 $73.69 $9.36 $13.75 $116. Ventura County $132.16 $13.65 $92.43 $11.31 $68.76 $84.3 $93.17 $15.72 $1.23 $17.39 Averages $17.2 $81.4 $67.79 $85.12 $88.31 $89.78 $99.83 $119.88 $136.21 $143.3 MEDIAN PRICE / SQUARE FOOT Bldg. SF 28 29 21 211 212 213 214 215 216 217 LA County $14.98 $115.93 $13.97 $17.96 $18.36 $114.1 $127.19 $142. $158.46 $177.59 Orange County $19.78 $15. $126.25 $125.4 $126.6 $136.89 $145. $169. $179.67 $23.87 Inland Empire $123.55 $86.85 $75.66 $7.64 $72.62 $76.33 $88.42 $1. $118.1 $125.38 Ventura County $151.19 $159.57 $114.43 $14.9 $99.77 $97.1 $113.66 $124.7 $122.33 $14.46 Median Average $137.91 $18.1 $94.62 $96.13 $99.91 $12.13 $114.26 $131.7 $147.82 $162.16 MEDIAN $ PSF INCREASE Bldg. SF 29 21 211 212 213 214 215 216 217 LA County -17.8% -1.3% 3.8%.4% 5.3% 11.5% 11.6% 11.6% 12.1% Orange County -21.4% -15.8% -1.%.8% 8.6% 5.9% 16.6% 6.3% 13.5% Inland Empire -29.7% -12.9% -6.6% 2.8% 5.1% 15.8% 13.1% 18.% 6.2% Ventura County 5.5% -28.3% -9.% -4.2% -2.7% 17.1% 9.7% -1.9% 14.8% Totals -21.6% -12.5% 1.6% 3.9% 2.2% 11.9% 14.7% 12.8% 9.7% The following information has been obtained from sources deemed reliable. While we do not doubt its accuracy, we make no warranty or representation about it. This report contains verified arms-length transactions, but excludes all portfolio sales.

Median Price PSF Annual Increase Square Footage Sold Average Price PSF Number of Transactions Transaction $ Volume (Millions) LOS ANGELES SAN GABRIEL VALLEY INDUSTRIAL FOURTH QUARTER 217 SOUTHERN CALIFORNIA INDUSTRIAL SALES TREND ANALYSIS Number of Transactions Transaction Volume $ 2, 1,8 1,6 1,4 1,2 1, 8 6 4 2 $4,. $3,5. $3,. $2,5. $2,. $1,5. $1,. $5. 28 29 21 211 212 213 214 215 216 217 LA County 99 523 79 1,43 1,442 1,195 1,346 1,59 1,49 1,723 Orange County 216 163 21 278 445 399 35 435 47 51 Inland Empire 389 293 288 383 56 57 594 679 646 848 Ventura County 65 59 53 83 92 1 19 111 137 131 35,, 3,, Square Footage Sold $. 28 29 21 211 212 213 214 215 216 217 LA County $2,9.7 $855. $1,238.9 $1,564.7 $2,145.2 $2,31.2 $2,297.7 $3,255.2 $2,947.6 $3,46.7 Orange County $525.4 $268.7 $425.3 $622.4 $646.1 $856.6 $96.6 $97.3 $1,269.3 $1,137.4 Inland Empire $1,315.6 $61.1 $879.4 $1,2.2 $94.1 $1,289.8 $1,488.8 $1,571. $1,396.4 $1,944. Ventura County $19. $41.7 $13.4 $16. $191.3 $117.5 $217.8 $152.9 $198.4 $221.2 $18. $16. Average Price PSF 25,, 2,, $14. $12. $1. 15,, $8. 1,, 5,, $6. $4. $2. 28 29 21 211 212 213 214 215 216 217 21,54,775 12,72,239 22,111,368 21,441,991 32,187,47 23,536,52 23,69,595 32,79,793 23,877,886 29,429,84 LA County Orange County 3,876,845 3,227,465 4,642,255 6,932,955 9,112,749 9,451,638 9,421,962 8,91,899 8,791,77 8,915,84 Inland Empire 2,3,636 12,127,851 19,912,668 18,246,26 18,677,764 23,322,756 22,993,923 21,78,64 15,61,71 2,829,822 Ventura County 1,334,814 446,275 1,217,138 1,386,321 3,496,396 1,669,355 3,123,237 1,85,294 2,79,797 2,767,523 Median Price PSF $. 28 29 21 211 212 213 214 215 216 217 LA County $119.13 $93.17 $72.12 $97.74 $96.81 $11.18 $114.27 $131.77 $151.36 $157.36 Orange County $157.9 $124.68 $12.72 $12.64 $11.4 $18.89 $129.56 $152.2 $163.78 $169.95 Inland Empire $83.14 $54.88 $53.35 $62.4 $66.74 $7.91 $73.69 $9.36 $13.75 $116. Ventura County $132.16 $13.65 $92.43 $11.31 $68.76 $84.3 $93.17 $15.72 $1.23 $17.39 % Change Median Price PSF $225. $2. $175. $15. $125. 3.% 2.% 1.%.% $1. $75. $5. $25. $. 28 29 21 211 212 213 214 215 216 217 LA County $14.98 $115.93 $13.97 $17.96 $18.36 $114.1 $127.19 $142. $158.46 $177.59 Orange County $19.78 $15. $126.25 $125.4 $126.6 $136.89 $145. $169. $179.67 $23.87 Inland Empire $123.55 $86.85 $75.66 $7.64 $72.62 $76.33 $88.42 $1. $118.1 $125.38 Ventura County $151.19 $159.57 $114.43 $14.9 $99.77 $97.1 $113.66 $124.7 $122.33 $14.46-1.% -2.% -3.% -4.% 29 21 211 212 213 214 215 216 217 LA County -17.8% -1.3% 3.8%.4% 5.3% 11.5% 11.6% 11.6% 12.1% Orange County -21.4% -15.8% -1.%.8% 8.6% 5.9% 16.6% 6.3% 13.5% Inland Empire -29.7% -12.9% -6.6% 2.8% 5.1% 15.8% 13.1% 18.% 6.2% Ventura County 5.5% -28.3% -9.% -4.2% -2.7% 17.1% 9.7% -1.9% 14.8%

LOS ANGELES SAN GABRIEL VALLEY INDUSTRIAL FOURTH QUARTER 217 PORTS OF LONG BEACH & LOS ANGELES HISTORICAL CONTAINER STATS & TRENDS Quarter & Year Loaded Inbound (Imports) Loaded Outbound (Exports) Total Loaded Empties Total Containers % Change (Prior Qtr.) % Change (Prior Yr.) % Change (Prior 2 Yrs.) 4Q 217 2,236,512 864,951 3,11,463 1,329,531 4,43,994-2.% 6.7% 14.3% 3Q 217 2,339,73 811,292 3,15,365 1,372,386 4,522,752 1.1% 11.4% 6.% 2Q 217 2,117,463 826,178 2,943,641 1,163,392 4,17,33 7.3% 7.4% 5.% 1Q 217 1,886,23 868,29 2,754,259 1,72,668 3,826,927-7.9% 6.5% 1.1% 4Q 216 2,87,498 879,267 2,966,765 1,186,955 4,153,72 2.3% 7.1% 12.4% 3Q 216 2,99,2 853,33 2,952,233 1,17,223 4,59,456 6.1% -4.8% 7.6% 2Q 216 2,96,446 856,215 2,818,94 1,7,246 3,825,34 6.5% -2.2% 3.4% 1Q 216 2,94,859 845,44 2,598,231 995,27 3,593,438-7.3% 3.4% -.1% 4Q 215 1,991,444 826,65 2,736,45 1,14,516 3,876,965-9.1% 4.9% 1.4% 3Q 215 1,817,161 844,562 2,661,724 1,284,213 4,265,623 9.% 13.% 7.1% 2Q 215 1,754,371 812,98 2,567,351 1,82,394 3,913,298 12.6% 5.8% 2.1% 1Q 215 1,89,18 789,51 2,598,231 878,445 3,476,676-5.9% -3.4% -3.3% 4Q 214 1,931,724 759,835 2,691,559 1,4,845 3,696,44-2.% -3.4%.3% 3Q 214 1,928,187 757,74 2,685,261 1,88,28 3,773,541 2.% -5.2% -2.8% 2Q 214 1,949,84 787,366 2,736,45 963,69 3,7,59 2.8% -3.4% 5.1% 1Q 214 2,37,574 779,934 2,817,58 78,456 3,597,965-5.9%.1% 15.5% 4Q 213 2,138,563 795,898 2,934,461 89,168 3,824,629-3.9% 3.8% 22.6% 3Q 213 2,168,57 812,93 2,981,41 1,,38 3,981,718 3.9% 2.6% 16.% 2Q 213 2,128,54 834,75 2,963,254 868,882 3,832,136 6.6% 8.9% 6.5% 1Q 213 2,38,181 84,821 2,879,3 716,573 3,595,576-2.4% 15.5%.2% Ports of Long Beach & Los Angeles Historical Container Stats Container Trade in TEUs* 5,, 4,5, 4,, 3,5, 3,, 2,5, 2,, 1,5, 1,, 5, 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 29 29 29 29 21 21 21 21 211 211 211 211 212 212 212 212 213 2132 13213 214 214 214 214 215 215 215 215216 216 216 216217 217 217 217 Loaded Inbound (Imports) Loaded Outbound (Exports) Empties

LOS ANGELES SAN GABRIEL VALLEY INDUSTRIAL FOURTH QUARTER 217 MARKET REPORT OVERVIEW SOUTHERN CALIFORNIA MARKET MAP METHODOLOGY & TERMINOLOGY Methodology Industrial and flex (R & D) buildings that are 5, square feet and greater. Direct Vacant SF Space that is vacant and ready for occupancy by a user. The space is being offered for lease or sale directly from the landlord. Total Vacant W/ Sublet SF Space that is vacant and ready for occupancy by a user. The space is being offered for lease or sale by the landlord or for sublease by the current tenant. DAUM OFFICES LOS ANGELES, CALIFORNIA 81 S. Figueroa Street, Suite 6 Los Angeles, CA 917 213-626-911 LOS ANGELES NORTH, CALIFORNIA 2182 Burbank Boulevard, Suite 21 Woodland Hills, CA 91367 818-887-36 SANTA CLARITA VALLEY, CALIFORNIA 28494 Westinghouse Place, Suite 312 Valencia, CA 91355 661-75-2299 MID-COUNTIES, CALIFORNIA 1381 Cerritos Corporate Drive, Suite C Cerritos, CA 973 562-27-33 ORANGE COUNTY, CALIFORNIA 44 MacArthur Boulevard, Suite 95 Newport Beach, CA 9266 949-724-19 VENTURA & SANTA BARBARA, CALIFORNIA 751 Daily Drive, Suite 15 Camarillo, CA 931 85-987-8866 Direct Vacancy Rate Total vacant direct space (vacant space for lease or sale from the landlord or owner) divided by the total rentable square footage for existing buildings only. Vacancy W/ Sublet Rate Total vacant direct space and sublease space divided by the total rentable square footage for existing buildings only. Gross Absorption The total change in occupied space over a given period of time, counting space that is occupied but not space that is vacated by tenants. Gross absorption differs from leasing activity, which is the sum of all space leased over a certain period of time. SAN GABRIEL VALLEY, CALIFORNIA 13181 Crossroads Pkwy. N, Suite 1 City of Industry, CA 91746 562-695-7244 SOUTH BAY, CALIFORNIA 125 W. 19th Street, Suite 42 Gardena, CA 9248 31-538-67 INLAND EMPIRE, CALIFORNIA 3595 E. Inland Empire Boulevard, Bldg. 5 Ontario, CA 91764 99-98-1234 PHOENIX ARIZONA 172 E. Highland Avenue, Suite 12 Phoenix, AZ 8516 62-957-73 The information contained in this report has been obtained from sources deemed reliable and has incorporated fourth-party data which has not been independently verified by DAUM. While we do not doubt its accuracy, DAUM makes no guarantee or warranty as to its completeness or accuracy. Due to the dynamic (constantly changing) database which DAUM uses to compile and analyze markets contained in this report, previously published statistics may vary from the data published in this report. Statistics and data have been revised to reflect changes in the following categories: existing buildings being verified and added to the database, new or revised occupancy information gathered, new construction being added to the inventory, building demolitions and renovations, as well as other factors that would necessitate revisions to the data and the properties surveyed. This methodology allows us to present the most current and up-to-date information, trend analysis and comparative statistics for this report. Net Absorption The net change in occupied space over a given period of time, calculated by summing all the positive changes in occupancy (move ins) and subtracting all the negative changes in occupancy (move outs). Under Construction Planned buildings for which construction has started but have not yet been granted a Certificate of Occupancy. Planned buildings are not included. Completed in 217 New buildings with original construction completed in the year 217 and granted a Certificate of Occupancy. Renovated buildings are not included.

LOS ANGELES SAN GABRIEL VALLEY OFFICE FOURTH QUARTER 217 QUICK STATS Direct Vacancy 12.5% Overall Vacancy 13.% Lease Rate FSG $2.26 Gross Absorption Under Construction MARKET TRENDS Current Quarter 28,888 SF SF Change from Last Quarter Year Overall Vacancy Rental Rates Gross Absorption Under Construction OFFICE SUMMARY & OUTLOOK The San Gabriel Valley office market witnessed vacancy rates decrease from 13.2% to 13.%, during the quarter. Average rents increased 2.7%, year over year, moving from $2.2 FSG to $2.26 FSG. Gross absorption finished with 29, square feet of activity for the quarter, while net absorption posted a gain of 28, square feet of occupied space. New construction activity was unchanged during the quarter, with no new projects currently underway. Unemployment rates have declined from 4.7% to 4.2%, year over year, and is equal to California (4.2%) and above the U.S. average of 3.9%. The office market fundamentals remain solid, as the market has recorded positive net absorption in eight of the past eleven quarters, totaling 57, square feet of occupied space gains. Job creation remains the key to increased office demand. In December, non-farm employment grew by 1.2%, year over year, adding 54,7 new jobs, which should keep vacancy rates moving lower with no new construction underway. The investment and sale market for office buildings in Los Angeles County continues to see strong activity levels as the total dollar sales volume in 216 was its strongest year ever with $9.6 billion, and followed that up with $8.1 billion in 217, its second highest total. Median sale prices finished down 1.4% on the year, but still remains near a 1- year high. The capital markets remain solid with plenty of liquidity, but we expect interest rates to rise further in the coming year. We expect vacancy levels to continue to trend lower in the coming quarters, with rents expected to increase 2% to 4% for most submarkets in the coming year. VACANCY & NET ABSORPTION ECONOMIC STATS Current Month Previous Year Dec. 17 Dec. 16 Unemployment 4.2% 4.7% Rate (MSA) Change in # +8,3 +54,7 Of Jobs (MSA) % Change for +.2% +1.2% Jobs (MSA) 3, 25, 2, 15, 1, 5, (5,) (1,) (15,) 18.% 16.% 14.% 12.% 1.% 8.% 6.% 4.% 2.% (2,) Net Absorption SF Overall Vacancy.%

LOS ANGELES SAN GABRIEL VALLEY OFFICE FOURTH QUARTER 217 VACANCY RENTAL RATES & TIME ON THE MARKET 18.% 17.% 16.% 15.% 14.% 13.% 12.% 11.% 1.% 9.% 8.% $2.3 $2.25 $2.2 $2.15 $2.1 $2.5 $2. $1.95 $1.9 $1.85 16. 14. 12. 1. 8. 6. 4. 2.. Direct Vacancy Overall Vacancy Avg. Rent (FSG) Time on Market (Months) Overall vacancy rates (including sublease space) decreased during the quarter, moving from 13.2% to 13.%. Of the two submarkets within the San Gabriel Valley market, the West San Gabriel Valley ended the quarter with the lowest total vacancy of 5.5%, followed by the East San Gabriel Valley at 17.3%. Since the fourth quarter of 216, overall vacancy rates have increased from 12.9% to 13.%, but still remains below its 5-year average of 14.5%. Average asking rates increased 2.7%, year over year, moving from $2.2 FSG to $2.26 FSG. Of the two submarkets within the San Gabriel Valley market, the West San Gabriel Valley finished with an average asking rent of $2.3 FSG, followed by the East San Gabriel Valley with an average asking rent of $2.25 FSG. Average asking rents increased 1.8% during the quarter, moving from $2.22 FSG to $2.26 FSG, while the median time to lease increased to 7.8 months during the quarter. ABSORPTION CONSTRUCTION ACTIVITY 5, 4, 3, 2, 1, (1,) (2,) 2, 18, 16, 14, 12, 1, 8, 6, 4, 2, (3,) Net Absorption SF Gross Absorption SF SF Newly Completed SF Under Construction Gross absorption totaled 29, square feet of activity, up 21% compared to the previous quarter, and higher by 77% compared to a year ago. Net absorption finished the quarter in positive territory, gaining 28, square feet of occupied space, but finished the year with a loss of 5, square feet. During 216, the market gained 237, square feet, after gaining 332, square feet during 215. The market finished with a loss of 24, square feet in 214, and a loss of 55, square feet in 213. Overall activity in 217 was up 18% compared to 216. We expect overall demand to remain at similar levels as we head into 218. Under construction activity was unchanged during the quarter, with no new projects currently underway, as the market has not delivered any new space since 215, when it added 168, square feet of new space. The market delivered 81, square feet in 214. The market did not deliver any new space during 213, after adding 157, square feet in 212. New construction completions have averaged approximately 5, square feet annually during the past five years. We expect new construction activity to remain limited in the coming quarters, as overall demand and current vacancy levels do not support further development at this time.

LOS ANGELES SAN GABRIEL VALLEY OFFICE FOURTH QUARTER 217 MARKET SNAPSHOT Total Direct Direct Total Total Inventory Vacant Vacancy Vacant w/ Sublet Vacant w/ Sublet SUBMARKETS Square Footage Square Footage Rate Square Footage Rate East San Gabriel Valley 7,334,87 1,216,68 16.6% 1,27,683 17.3% West San Gabriel Valley 4,257,24 234,1 5.5% 234,1 5.5% San Gabriel Valley Totals 11,591,291 1,45,69 12.5% 1,54,684 13.% Office Market Inventory West San Gabriel Valley 37% East San Gabriel Valley 63% 2.% 18.% 16.% 14.% 12.% 1.% 8.% 6.% 4.% 2.%.% Office Vacancy Rates East San Gabriel Valley West San Gabriel Valley Vacancy- Direct Vacancy w/ Sublease Rate Average Low-High Square Feet Square Feet Gross Absorption Asking Rent Asking Rent Built in Under Square Feet SUBMARKETS FSG Range FSG 217 Construction Current Quarter East San Gabriel Valley $2.25 $1.35-$2.8 135,34 West San Gabriel Valley $2.3 $1.5-$3.1 73,854 San Gabriel Valley Totals $2.26 $1.35-$3.1 28,888 $2.35 $2.25 $2.15 $2.5 $1.95 $1.85 $1.75 East San Gabriel Valley Office Rental Rates West San Gabriel San Gabriel Valley Valley Totals Average Asking Rent FSG 2 1,, 9, 8, 7, 6, 5, 4, 3, 2, 1, New Construction Activity East San Gabriel Valley Square Feet Built in 217 West San Gabriel Valley San Gabriel Valley Totals Square Feet Under Construction

LOS ANGELES SAN GABRIEL VALLEY OFFICE FOURTH QUARTER 217 SOUTHERN CALIFORNIA OFFICE BUILDING SALE TREND ANALYSIS TOTAL SALES TRANSACTIONS Market 28 29 21 211 212 213 214 215 216 217 LA County 517 347 355 552 75 769 891 1,54 99 1,156 Orange County 247 13 151 25 294 347 334 425 392 41 Inland Empire 284 168 156 249 266 328 372 432 41 58 Ventura County 51 24 29 54 59 58 17 86 11 19 Totals 1,99 642 691 1,6 1,369 1,52 1,74 1,997 1,893 2,183 TOTAL TRANSACTION DOLLAR VALUE (MILLIONS) Bldg. SF 28 29 21 211 212 213 214 215 216 217 LA County $2,664.2 $753.7 $1,159.9 $2,72. $3,239.6 $5,953.1 $7,355.7 $4,843.9 $9,623.6 $8,57.2 Orange County $725.3 $364.9 $521.9 $625.9 $783.3 $1,385.1 $1,596.8 $2,797.9 $2,55.6 $2,273.2 Inland Empire $359.1 $85.7 $96. $13.2 $166.4 $237.5 $332.5 $642.6 $46.9 $554.2 Ventura County $93.9 $29.6 $81.3 $56.4 $43.2 $57.1 $246.9 $164.5 $169.4 $138.1 Totals $3,842.5 $1,233.9 $1,859.2 $2,884.6 $4,232.5 $7,632.8 $9,531.9 $8,448.9 $12,759.6 $11,22.6 TOTAL SQUARE FEET SOLD Bldg. SF 28 29 21 211 212 213 214 215 216 217 LA County 11,854,67 5,541,317 6,23,886 9,775,98 15,126,197 23,598,267 23,584,264 17,56,65 25,141,916 26,94,94 Orange County 3,283,136 2,23,473 3,59,352 3,865,353 6,76,432 7,31,297 8,173,268 12,235,143 11,838,955 9,14,83 Inland Empire 2,124,94 957,23 1,94,462 1,732,294 2,329,749 2,463,683 2,876,7 5,361,356 3,443,681 5,215,681 Ventura County 476,21 141,646 37,79 397,973 517,872 679,369 1,547,138 1,66,791 1,183,29 1,157,854 Totals 17,738,767 8,663,459 11,141,779 15,77,718 24,5,25 34,42,616 36,181,37 36,169,355 41,67,842 41,573,242 AVERAGE PRICE / SF Bldg. SF 28 29 21 211 212 213 214 215 216 217 LA County $273.87 $228.75 $235.36 $254.4 $264.17 $281.38 $344.77 $36.39 $429.23 $369.62 Orange County $293.51 $195.38 $182.39 $192.7 $211.65 $28.38 $27.78 $259.77 $264.8 $273.65 Inland Empire $212.76 $181.29 $13.41 $122.44 $135.29 $13.33 $144.25 $141.73 $17.69 $161.21 Ventura County $27.86 $248.34 $328.13 $182.62 $13.87 $14.6 $29.4 $189.67 $182.13 $189.78 Averages $268.41 $216.4 $21.92 $222.97 $235.55 $251.27 $292.9 $262.77 $353.81 $317.45 MEDIAN PRICE / SQUARE FOOT Bldg. SF 28 29 21 211 212 213 214 215 216 217 LA County $287.16 $26.95 $211.87 $24.94 $243.91 $233.31 $266.2 $283.91 $298.2 $293.7 Orange County $314.94 $224.41 $192.32 $216.15 $19. $24.49 $223.61 $246.57 $28.19 $259.2 Inland Empire $245.57 $187.29 $165.49 $135.16 $119.28 $125.7 $135.5 $132.88 $16.5 $169.4 Ventura County $253.62 $297.9 $22.17 $215.19 $183.47 $175.15 $18.41 $213.19 $19.56 $29.7 Median Average $286.42 $244.87 $2.89 $2.28 $216.91 $218.13 $242.37 $246.81 $278.51 $268.17 MEDIAN $ PSF INCREASE Bldg. SF 29 21 211 212 213 214 215 216 217 LA County -9.1% -18.8% -3.3% 19.% -4.3% 14.% 6.7% 5.% -1.4% Orange County -28.7% -14.3% 12.4% -12.1% 7.6% 9.4% 1.3% 13.6% -7.6% Inland Empire -23.7% -11.6% -18.3% -11.7% 4.9% 8.% -1.6% 2.8% 5.5% Ventura County 17.1% -31.9% 6.4% -14.7% -4.5% 3.% 18.2% -1.6% 1.% Totals -14.5% -18.% -.3% 8.3%.6% 11.1% 1.8% 12.8% -3.7% The following information has been obtained from sources deemed reliable. While we do not doubt its accuracy, we make no warranty or representation about it. This report contains verified arms-length transactions, but excludes all portfolio sales.

Median Price PSF Annual Increase Square Footage Sold Average Price PSF Number of Transactions Transaction $ Volume (Millions) LOS ANGELES SAN GABRIEL VALLEY OFFICE FOURTH QUARTER 217 SOUTHERN CALIFORNIA OFFICE BUILDING SALE TREND ANALYSIS Number of Transactions Transaction Volume $ 1,4 $12,. 1,2 $1,. 1, 8 6 $8,. $6,. 4 $4,. 2 $2,. 28 29 21 211 212 213 214 215 216 217 LA County 517 347 355 552 75 769 891 1,54 99 1,156 Orange County 247 13 151 25 294 347 334 425 392 41 Inland Empire 284 168 156 249 266 328 372 432 41 58 Ventura County 51 24 29 54 59 58 17 86 11 19 $. 28 29 21 211 212 213 214 215 216 217 LA County $2,664.2 $753.7 $1,159.9 $2,72. $3,239.6 $5,953.1 $7,355.7 $4,843.9 $9,623.6 $8,57.2 Orange County $725.3 $364.9 $521.9 $625.9 $783.3 $1,385.1 $1,596.8 $2,797.9 $2,55.6 $2,273.2 Inland Empire $359.1 $85.7 $96. $13.2 $166.4 $237.5 $332.5 $642.6 $46.9 $554.2 Ventura County $93.9 $29.6 $81.3 $56.4 $43.2 $57.1 $246.9 $164.5 $169.4 $138.1 Square Footage Sold Average Price PSF 3,, $5. $45. 25,, 2,, 15,, $4. $35. $3. $25. 1,, $2. $15. 5,, $1. $5. 28 29 21 211 212 213 214 215 216 217 11,854,67 5,541,317 6,23,886 9,775,98 15,126,197 23,598,267 23,584,264 17,56,65 25,141,916 26,94,94 LA County Orange County 3,283,136 2,23,473 3,59,352 3,865,353 6,76,432 7,31,297 8,173,268 12,235,143 11,838,955 9,14,83 Inland Empire 2,124,94 957,23 1,94,462 1,732,294 2,329,749 2,463,683 2,876,7 5,361,356 3,443,681 5,215,681 Ventura County 476,21 141,646 37,79 397,973 517,872 679,369 1,547,138 1,66,791 1,183,29 1,157,854 Median Price PSF $. 28 29 21 211 212 213 214 215 216 217 LA County $273.87 $228.75 $235.36 $254.4 $264.17 $281.38 $344.77 $36.39 $429.23 $369.62 Orange County $293.51 $195.38 $182.39 $192.7 $211.65 $28.38 $27.78 $259.77 $264.8 $273.65 Inland Empire $212.76 $181.29 $13.41 $122.44 $135.29 $13.33 $144.25 $141.73 $17.69 $161.21 Ventura County $27.86 $248.34 $328.13 $182.62 $13.87 $14.6 $29.4 $189.67 $182.13 $189.78 % Change Median Price PSF $35. $325. $3. $275. $25. $225. $2. $175. $15. $125. $1. $75. $5. $25. $. 28 29 21 211 212 213 214 215 216 217 LA County $287.16 $26.95 $211.87 $24.94 $243.91 $233.31 $266.2 $283.91 $298.2 $293.7 Orange County $314.94 $224.41 $192.32 $216.15 $19. $24.49 $223.61 $246.57 $28.19 $259.2 Inland Empire $245.57 $187.29 $165.49 $135.16 $119.28 $125.7 $135.5 $132.88 $16.5 $169.4 Ventura County $253.62 $297.9 $22.17 $215.19 $183.47 $175.15 $18.41 $213.19 $19.56 $29.7 3.% 2.% 1.%.% -1.% -2.% -3.% -4.% 29 21 211 212 213 214 215 216 217 LA County -9.1% -18.8% -3.3% 19.% -4.3% 14.% 6.7% 5.% -1.4% Orange County -28.7% -14.3% 12.4% -12.1% 7.6% 9.4% 1.3% 13.6% -7.6% Inland Empire -23.7% -11.6% -18.3% -11.7% 4.9% 8.% -1.6% 2.8% 5.5% Ventura County 17.1% -31.9% 6.4% -14.7% -4.5% 3.% 18.2% -1.6% 1.%

LOS ANGELES SAN GABRIEL VALLEY OFFICE FOURTH QUARTER 217 MARKET REPORT OVERVIEW SOUTHERN CALIFORNIA MARKET MAP METHODOLOGY & TERMINOLOGY Methodology Non-owner occupied, multi-tenant, office buildings that are 3, square feet and greater. Direct Vacant SF Space that is vacant and ready for occupancy by a user. The space is being offered for lease or sale directly from the landlord. Total Vacant W/ Sublet SF Space that is vacant and ready for occupancy by a user. The space is being offered for lease or sale by the landlord or for sublease by the current tenant. DAUM OFFICES LOS ANGELES, CALIFORNIA 81 S. Figueroa Street, Suite 6 Los Angeles, CA 917 213-626-911 LOS ANGELES NORTH, CALIFORNIA 2182 Burbank Boulevard, Suite 21 Woodland Hills, CA 91367 818-887-36 SANTA CLARITA VALLEY, CALIFORNIA 28494 Westinghouse Place, Suite 312 Valencia, CA 91355 661-75-2299 MID-COUNTIES, CALIFORNIA 1381 Cerritos Corporate Drive, Suite C Cerritos, CA 973 562-27-33 ORANGE COUNTY, CALIFORNIA 44 MacArthur Boulevard, Suite 95 Newport Beach, CA 9266 949-724-19 VENTURA & SANTA BARBARA, CALIFORNIA 751 Daily Drive, Suite 15 Camarillo, CA 931 85-987-8866 Direct Vacancy Rate Total vacant direct space (vacant space for lease or sale from the landlord or owner) divided by the total rentable square footage for existing buildings only. Vacancy W/ Sublet Rate Total vacant direct space and sublease space divided by the total rentable square footage for existing buildings only. Gross Absorption The total change in occupied space over a given period of time, counting space that is occupied but not space that is vacated by tenants. Gross absorption differs from leasing activity, which is the sum of all space leased over a certain period of time. SAN GABRIEL VALLEY, CALIFORNIA 13181 Crossroads Pkwy. N, Suite 1 City of Industry, CA 91746 562-695-7244 SOUTH BAY, CALIFORNIA 125 W. 19th Street, Suite 42 Gardena, CA 9248 31-538-67 INLAND EMPIRE, CALIFORNIA 3595 E. Inland Empire Boulevard, Bldg. 5 Ontario, CA 91764 99-98-1234 PHOENIX ARIZONA 172 E. Highland Avenue, Suite 12 Phoenix, AZ 8516 62-957-73 The information contained in this report has been obtained from sources deemed reliable and has incorporated fourth-party data which has not been independently verified by DAUM. While we do not doubt its accuracy, DAUM makes no guarantee or warranty as to its completeness or accuracy. Due to the dynamic (constantly changing) database which DAUM uses to compile and analyze markets contained in this report, previously published statistics may vary from the data published in this report. Statistics and data have been revised to reflect changes in the following categories: existing buildings being verified and added to the database, new or revised occupancy information gathered, new construction being added to the inventory, building demolitions and renovations, as well as other factors that would necessitate revisions to the data and the properties surveyed. This methodology allows us to present the most current and up-to-date information, trend analysis and comparative statistics for this report. Net Absorption The net change in occupied space over a given period of time, calculated by summing all the positive changes in occupancy (move ins) and subtracting all the negative changes in occupancy (move outs). Under Construction Planned buildings for which construction has started but have not yet been granted a Certificate of Occupancy. Planned buildings are not included. Completed in 217 New buildings with original construction completed in the year 217 and granted a Certificate of Occupancy. Renovated buildings are not included.

LOS ANGELES WEST/SOUTH INDUSTRIAL FOURTH QUARTER 217 QUICK STATS Direct Vacancy 1.6% Overall Vacancy 1.9% Lease Rate NNN $.91 Gross Absorption Under Construction MARKET TRENDS Current Quarter 3,165,445 SF 82,76 SF Change from Last Quarter Year Overall Vacancy Rental Rates Gross Absorption Under Construction INDUSTRIAL SUMMARY & OUTLOOK The Los Angeles West/South industrial market witnessed vacancy rates remain unchanged at 1.9%, during the quarter. Average asking rents increased 9.6%, year over year, moving from $.83nnn to $.91nnn. Gross absorption finished the quarter with 3.2 million square feet of activity, while net absorption finished with a gain of 75, square feet and gained 1.7 million square feet for the year. Under construction activity decreased during the quarter with 8, square feet currently underway, as the market delivered 1.5 million square feet of new space for the year. Unemployment rates have declined from 4.7% to 4.2%, year over year, and is equal to California (4.2%) and above the U.S. average of 3.9%. The industrial market continues to see available supply remain at extremely low levels, and while new construction has recently been at higher levels, it still has not been enough to keep pace with strong demand, resulting in vacancy remaining near all-time lows and rental rates still rising rapidly. Demand for industrial space will continue to be driven by domestic and global consumption levels. In 217, the Los Angeles and Long Beach Port container traffic recorded its highest container total ever with 16.89 million TEU s, up 8% from 216 and 7% higher than its second highest year during 26. The investment and sale market for industrial real estate in Los Angeles County remains extremely strong, as median prices have witnessed double-digit annual price growth from 214 to 217, and is up another 12.1% in 217. The capital markets remain solid with plenty of liquidity, but we expect interest rates to continue to rise in the coming year. The overall industrial market remains a landlord controlled market, and we expect vacancy to remain in the 2% range, with rents expected to rise another 4% to 6% in the coming year. VACANCY & NET ABSORPTION ECONOMIC STATS Current Month Previous Year 2,5, 2,, 7.% 6.% Dec. 17 Dec. 16 Unemployment 4.2% 4.7% Rate (MSA) Change in # +8,3 +54,7 Of Jobs (MSA) % Change for +.2% +1.2% Jobs (MSA) 1,5, 1,, 5, (5,) 5.% 4.% 3.% 2.% 1.% (1,,).% Net Absorption SF Overall Vacancy

LOS ANGELES WEST/SOUTH INDUSTRIAL FOURTH QUARTER 217 VACANCY RENTAL RATES & TIME ON THE MARKET 7.% $1. 8. 6.% 5.% 4.% 3.% 2.% 1.% $.9 $.8 $.7 $.6 $.5 7. 6. 5. 4. 3. 2. 1..% $.4. Direct Vacancy Overall vacancy rates were unchanged during the quarter, remaining at 1.9%. Of the seven (7) submarkets within the West/South market, the Carson/Rancho Dominguez submarket ended the quarter with the lowest total vacancy at 1.3%, followed by the Gardena/11 Corridor at 1.4%, El Segundo/ Hawthorne at 1.9%, Torrance/Beach Cities at 2.2%, the Westside at 2.5%, with Long Beach and Lynwood/Paramount at 2.7%, respectively. Since the fourth quarter of 216, overall vacancy rates remain unchanged at 1.9%, and remains near an all-time low. ABSORPTION Overall Vacancy Avg. Rent (NNN) Time on Market (Months) Standard industrial rental rates increased 9.6%, year over year, moving from $.83nnn to $.91nnn. Of the seven major submarkets within the West/South market, the Westside ended the quarter with the highest standard industrial rental rate of $1.68nnn, followed by El Segundo/Hawthorne at $1.16nnn, Torrance/Beach Cities at $.85nnn, Long Beach at $.78nnn, Carson/Rancho Dominguez at $.73nnn, Gardena/11 Corridor at $.69nnn, and the Lynwood/Paramount submarket finishing the quarter at $.64nnn. Average asking rates increased 1.1% during the quarter, moving from $.9nnn to $.91nnn. CONSTRUCTION ACTIVITY 6,, 1,6, 5,, 1,4, 1,2, 4,, 1,, 3,, 8, 2,, 1,, 6, 4, 2, (1,,) Net Absorption SF Gross Absorption SF SF Newly Completed SF Under Construction During the quarter, gross absorption finished with 3.2 million square feet of activity, up 3% compared to the previous quarter, and higher by 78% compared to a year ago. Net absorption finished the quarter in positive territory, gaining 75, square feet of occupied space and gained 1.7 million square feet for the year. In 216, the market gained 99, square feet, after gaining 2.1 million square feet in 215, and 6.1 million square feet in 214. Overall demand and activity remains at lower levels due to the lack of available space, but we do expect levels to rise as more new construction is delivered in the coming quarters. Under construction activity decreased during the quarter, with 8, square feet currently underway, as the market delivered 1.5 million square feet of new space for the year. In 216, the market added 293, square feet of new space, after delivering 28, square feet in 215, 41, square feet during 214, and 1.4 million square feet in 213. During the past five years, the market has averaged annual delivery totals of 7, square feet. We expect new construction to remain active in the coming quarters, as available space remains extremely tight and demand remains extremely strong.

LOS ANGELES WEST/SOUTH INDUSTRIAL FOURTH QUARTER 217 MARKET SNAPSHOT Total Direct Direct Total Vacant Vacancy Inventory Vacant Vacancy w/ Sublet with Sublet SUBMARKETS Square Footage Square Footage Rate Square Footage Rate Carson / Rancho Dmgz 75,43,449 71,236.9% 973,637 1.3% El Segundo / Hawthorne 24,667,651 43,542 1.7% 46,565 1.9% Gardena / 11 Corridor 35,684,397 41,23 1.1% 483,122 1.4% Long Beach Area 28,743,57 77,978 2.7% 775,996 2.7% Lynwood / Paramount 12,931,112 354,668 2.7% 354,668 2.7% Torrance / Beach Cities 35,786,394 688,175 1.9% 798,392 2.2% Westside 18,185,655 441,682 2.4% 46,998 2.5% L.A.- West / South Totals 231,42,228 3,86,34 1.6% 4,37,378 1.9% Industrial Market Inventory 3.% Industrial Vacancy Rates Torrance / Westside Beach Cities 8% Lynwood / 15% Paramount 5% Long Beach Area 12% Gardena / 11 Corridor 15% Carson / Rancho Dmgz 33% El Segundo / Hawthorne 11% 2.5% 2.% 1.5% 1.%.5%.% Carson / Rancho Dmgz El Segundo / Hawthorne Gardena / Long Beach Lynwood / 11 Corridor Area Paramount Torrance / Beach Citie s Westside Direct Vacancy Vacancy with Sublet Average Average Square Feet Square Feet Gross Absorption Industrial R&D / Flex Built in Under Square Feet SUBMARKETS Rent Rent 217 Construction Current Quarter Carson / Rancho Dmgz $.73 $1.3 862,989 El Segundo / Hawthorne $1.16 $1.4 143,436 432,733 Gardena / 11 Corridor $.69 $.91 339,66 257,559 577,152 Long Beach Area $.78 $1.5 795,88 32,27 483,82 Lynwood / Paramount $.64 $.75 21,27 157,145 Torrance / Beach Cities $.85 $1.25 3,492 512,49 425,978 Westside $1.68 $2.75 225,646 L.A.- West / South Totals $.91 $1.28 1,59,649 82,76 3,165,445 $3. Industrial Rental Rates 1,6, New Construction Activity $2.5 $2. 1,4, 1,2, 1,, $1.5 8, $1. $.5 6, 4, 2, $. Carson / Rancho Dmgz El Segundo / Hawthorne Gardena / 11 Corridor Long Beach Area Lynwood / Torrance / Paramount Beach Citie s Westside L.A.- West / South Totals Carson / Rancho Dmgz El Segundo / Hawthorne Gardena / Long Beach Lynwood / 11 Corridor Area Paramount Torrance / Beach Cities Westside L.A.- West / South Totals Average Industrial Rent Average R&D / Flex Rent Square Feet Built in 217 Square Feet Under Construction

LOS ANGELES WEST/SOUTH INDUSTRIAL FOURTH QUARTER 217 SOUTHERN CALIFORNIA INDUSTRIAL SALES TREND ANALYSIS TOTAL SALES TRANSACTIONS Market 28 29 21 211 212 213 214 215 216 217 LA County 99 523 79 1,43 1,442 1,195 1,346 1,59 1,49 1,723 Orange County 216 163 21 278 445 399 35 435 47 51 Inland Empire 389 293 288 383 56 57 594 679 646 848 Ventura County 65 59 53 83 92 1 19 111 137 131 Totals 1,579 1,38 1,26 1,787 2,539 2,264 2,399 2,815 2,662 3,23 TOTAL TRANSACTION DOLLAR VALUE (MILLIONS) Bldg. SF 28 29 21 211 212 213 214 215 216 217 LA County $2,9.7 $855. $1,238.9 $1,564.7 $2,145.2 $2,31.2 $2,297.7 $3,255.2 $2,947.6 $3,46.7 Orange County $525.4 $268.7 $425.3 $622.4 $646.1 $856.6 $96.6 $97.3 $1,269.3 $1,137.4 Inland Empire $1,315.6 $61.1 $879.4 $1,2.2 $94.1 $1,289.8 $1,488.8 $1,571. $1,396.4 $1,944. Ventura County $19. $41.7 $13.4 $16. $191.3 $117.5 $217.8 $152.9 $198.4 $221.2 Totals $4,4.7 $1,775.5 $2,647. $3,295.3 $3,886.7 $4,295.1 $4,965. $5,886.3 $5,811.7 $6,79.3 TOTAL SQUARE FEET SOLD Bldg. SF 28 29 21 211 212 213 214 215 216 217 LA County 21,54,775 12,72,239 22,111,368 21,441,991 32,187,47 23,536,52 23,69,595 32,79,793 23,877,886 29,429,84 Orange County 3,876,845 3,227,465 4,642,255 6,932,955 9,112,749 9,451,638 9,421,962 8,91,899 8,791,77 8,915,84 Inland Empire 2,3,636 12,127,851 19,912,668 18,246,26 18,677,764 23,322,756 22,993,923 21,78,64 15,61,71 2,829,822 Ventura County 1,334,814 446,275 1,217,138 1,386,321 3,496,396 1,669,355 3,123,237 1,85,294 2,79,797 2,767,523 Totals 46,27,7 28,53,83 47,883,429 48,7,293 63,474,379 57,98,269 59,229,717 64,612,626 5,981,1 61,942,953 AVERAGE PRICE / SF Bldg. SF 28 29 21 211 212 213 214 215 216 217 LA County $119.13 $93.17 $72.12 $97.74 $96.81 $11.18 $114.27 $131.77 $151.36 $157.36 Orange County $157.9 $124.68 $12.72 $12.64 $11.4 $18.89 $129.56 $152.2 $163.78 $169.95 Inland Empire $83.14 $54.88 $53.35 $62.4 $66.74 $7.91 $73.69 $9.36 $13.75 $116. Ventura County $132.16 $13.65 $92.43 $11.31 $68.76 $84.3 $93.17 $15.72 $1.23 $17.39 Averages $17.2 $81.4 $67.79 $85.12 $88.31 $89.78 $99.83 $119.88 $136.21 $143.3 MEDIAN PRICE / SQUARE FOOT Bldg. SF 28 29 21 211 212 213 214 215 216 217 LA County $14.98 $115.93 $13.97 $17.96 $18.36 $114.1 $127.19 $142. $158.46 $177.59 Orange County $19.78 $15. $126.25 $125.4 $126.6 $136.89 $145. $169. $179.67 $23.87 Inland Empire $123.55 $86.85 $75.66 $7.64 $72.62 $76.33 $88.42 $1. $118.1 $125.38 Ventura County $151.19 $159.57 $114.43 $14.9 $99.77 $97.1 $113.66 $124.7 $122.33 $14.46 Median Average $137.91 $18.1 $94.62 $96.13 $99.91 $12.13 $114.26 $131.7 $147.82 $162.16 MEDIAN $ PSF INCREASE Bldg. SF 29 21 211 212 213 214 215 216 217 LA County -17.8% -1.3% 3.8%.4% 5.3% 11.5% 11.6% 11.6% 12.1% Orange County -21.4% -15.8% -1.%.8% 8.6% 5.9% 16.6% 6.3% 13.5% Inland Empire -29.7% -12.9% -6.6% 2.8% 5.1% 15.8% 13.1% 18.% 6.2% Ventura County 5.5% -28.3% -9.% -4.2% -2.7% 17.1% 9.7% -1.9% 14.8% Totals -21.6% -12.5% 1.6% 3.9% 2.2% 11.9% 14.7% 12.8% 9.7% The following information has been obtained from sources deemed reliable. While we do not doubt its accuracy, we make no warranty or representation about it. This report contains verified arms-length transactions, but excludes all portfolio sales.

Median Price PSF Annual Increase Square Footage Sold Average Price PSF Number of Transactions Transaction $ Volume (Millions) LOS ANGELES WEST/SOUTH INDUSTRIAL FOURTH QUARTER 217 SOUTHERN CALIFORNIA INDUSTRIAL SALES TREND ANALYSIS Number of Transactions Transaction Volume $ 2, 1,8 1,6 1,4 1,2 1, 8 6 4 2 $4,. $3,5. $3,. $2,5. $2,. $1,5. $1,. $5. 28 29 21 211 212 213 214 215 216 217 LA County 99 523 79 1,43 1,442 1,195 1,346 1,59 1,49 1,723 Orange County 216 163 21 278 445 399 35 435 47 51 Inland Empire 389 293 288 383 56 57 594 679 646 848 Ventura County 65 59 53 83 92 1 19 111 137 131 35,, 3,, Square Footage Sold $. 28 29 21 211 212 213 214 215 216 217 LA County $2,9.7 $855. $1,238.9 $1,564.7 $2,145.2 $2,31.2 $2,297.7 $3,255.2 $2,947.6 $3,46.7 Orange County $525.4 $268.7 $425.3 $622.4 $646.1 $856.6 $96.6 $97.3 $1,269.3 $1,137.4 Inland Empire $1,315.6 $61.1 $879.4 $1,2.2 $94.1 $1,289.8 $1,488.8 $1,571. $1,396.4 $1,944. Ventura County $19. $41.7 $13.4 $16. $191.3 $117.5 $217.8 $152.9 $198.4 $221.2 $18. $16. Average Price PSF 25,, 2,, $14. $12. $1. 15,, $8. 1,, 5,, $6. $4. $2. 28 29 21 211 212 213 214 215 216 217 21,54,775 12,72,239 22,111,368 21,441,991 32,187,47 23,536,52 23,69,595 32,79,793 23,877,886 29,429,84 LA County Orange County 3,876,845 3,227,465 4,642,255 6,932,955 9,112,749 9,451,638 9,421,962 8,91,899 8,791,77 8,915,84 Inland Empire 2,3,636 12,127,851 19,912,668 18,246,26 18,677,764 23,322,756 22,993,923 21,78,64 15,61,71 2,829,822 Ventura County 1,334,814 446,275 1,217,138 1,386,321 3,496,396 1,669,355 3,123,237 1,85,294 2,79,797 2,767,523 Median Price PSF $. 28 29 21 211 212 213 214 215 216 217 LA County $119.13 $93.17 $72.12 $97.74 $96.81 $11.18 $114.27 $131.77 $151.36 $157.36 Orange County $157.9 $124.68 $12.72 $12.64 $11.4 $18.89 $129.56 $152.2 $163.78 $169.95 Inland Empire $83.14 $54.88 $53.35 $62.4 $66.74 $7.91 $73.69 $9.36 $13.75 $116. Ventura County $132.16 $13.65 $92.43 $11.31 $68.76 $84.3 $93.17 $15.72 $1.23 $17.39 % Change Median Price PSF $225. $2. $175. $15. $125. 3.% 2.% 1.%.% $1. $75. $5. $25. $. 28 29 21 211 212 213 214 215 216 217 LA County $14.98 $115.93 $13.97 $17.96 $18.36 $114.1 $127.19 $142. $158.46 $177.59 Orange County $19.78 $15. $126.25 $125.4 $126.6 $136.89 $145. $169. $179.67 $23.87 Inland Empire $123.55 $86.85 $75.66 $7.64 $72.62 $76.33 $88.42 $1. $118.1 $125.38 Ventura County $151.19 $159.57 $114.43 $14.9 $99.77 $97.1 $113.66 $124.7 $122.33 $14.46-1.% -2.% -3.% -4.% 29 21 211 212 213 214 215 216 217 LA County -17.8% -1.3% 3.8%.4% 5.3% 11.5% 11.6% 11.6% 12.1% Orange County -21.4% -15.8% -1.%.8% 8.6% 5.9% 16.6% 6.3% 13.5% Inland Empire -29.7% -12.9% -6.6% 2.8% 5.1% 15.8% 13.1% 18.% 6.2% Ventura County 5.5% -28.3% -9.% -4.2% -2.7% 17.1% 9.7% -1.9% 14.8%

LOS ANGELES WEST/SOUTH INDUSTRIAL FOURTH QUARTER 217 PORTS OF LONG BEACH & LOS ANGELES HISTORICAL CONTAINER STATS & TRENDS Quarter & Year Loaded Inbound (Imports) Loaded Outbound (Exports) Total Loaded Empties Total Containers % Change (Prior Qtr.) % Change (Prior Yr.) % Change (Prior 2 Yrs.) 4Q 217 2,236,512 864,951 3,11,463 1,329,531 4,43,994-2.% 6.7% 14.3% 3Q 217 2,339,73 811,292 3,15,365 1,372,386 4,522,752 1.1% 11.4% 6.% 2Q 217 2,117,463 826,178 2,943,641 1,163,392 4,17,33 7.3% 7.4% 5.% 1Q 217 1,886,23 868,29 2,754,259 1,72,668 3,826,927-7.9% 6.5% 1.1% 4Q 216 2,87,498 879,267 2,966,765 1,186,955 4,153,72 2.3% 7.1% 12.4% 3Q 216 2,99,2 853,33 2,952,233 1,17,223 4,59,456 6.1% -4.8% 7.6% 2Q 216 2,96,446 856,215 2,818,94 1,7,246 3,825,34 6.5% -2.2% 3.4% 1Q 216 2,94,859 845,44 2,598,231 995,27 3,593,438-7.3% 3.4% -.1% 4Q 215 1,991,444 826,65 2,736,45 1,14,516 3,876,965-9.1% 4.9% 1.4% 3Q 215 1,817,161 844,562 2,661,724 1,284,213 4,265,623 9.% 13.% 7.1% 2Q 215 1,754,371 812,98 2,567,351 1,82,394 3,913,298 12.6% 5.8% 2.1% 1Q 215 1,89,18 789,51 2,598,231 878,445 3,476,676-5.9% -3.4% -3.3% 4Q 214 1,931,724 759,835 2,691,559 1,4,845 3,696,44-2.% -3.4%.3% 3Q 214 1,928,187 757,74 2,685,261 1,88,28 3,773,541 2.% -5.2% -2.8% 2Q 214 1,949,84 787,366 2,736,45 963,69 3,7,59 2.8% -3.4% 5.1% 1Q 214 2,37,574 779,934 2,817,58 78,456 3,597,965-5.9%.1% 15.5% 4Q 213 2,138,563 795,898 2,934,461 89,168 3,824,629-3.9% 3.8% 22.6% 3Q 213 2,168,57 812,93 2,981,41 1,,38 3,981,718 3.9% 2.6% 16.% 2Q 213 2,128,54 834,75 2,963,254 868,882 3,832,136 6.6% 8.9% 6.5% 1Q 213 2,38,181 84,821 2,879,3 716,573 3,595,576-2.4% 15.5%.2% Ports of Long Beach & Los Angeles Historical Container Stats Container Trade in TEUs* 5,, 4,5, 4,, 3,5, 3,, 2,5, 2,, 1,5, 1,, 5, 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 29 29 29 29 21 21 21 21211 211 211 211 212 212 212 212 213 213 213 213214 214 214 214 215 215 215 215 216 216 216 216 217 217 217 217 Loaded Inbound (Imports) Loaded Outbound (Exports) Empties

LOS ANGELES WEST/SOUTH INDUSTRIAL FOURTH QUARTER 217 MARKET REPORT OVERVIEW SOUTHERN CALIFORNIA MARKET MAP METHODOLOGY & TERMINOLOGY Methodology Industrial and flex (R & D) buildings that are 5, square feet and greater. Direct Vacant SF Space that is vacant and ready for occupancy by a user. The space is being offered for lease or sale directly from the landlord. Total Vacant W/ Sublet SF Space that is vacant and ready for occupancy by a user. The space is being offered for lease or sale by the landlord or for sublease by the current tenant. DAUM OFFICES LOS ANGELES, CALIFORNIA 81 S. Figueroa Street, Suite 6 Los Angeles, CA 917 213-626-911 LOS ANGELES NORTH, CALIFORNIA 2182 Burbank Boulevard, Suite 21 Woodland Hills, CA 91367 818-887-36 SANTA CLARITA VALLEY, CALIFORNIA 28494 Westinghouse Place, Suite 312 Valencia, CA 91355 661-75-2299 MID-COUNTIES, CALIFORNIA 1381 Cerritos Corporate Drive, Suite C Cerritos, CA 973 562-27-33 ORANGE COUNTY, CALIFORNIA 44 MacArthur Boulevard, Suite 95 Newport Beach, CA 9266 949-724-19 VENTURA & SANTA BARBARA, CALIFORNIA 751 Daily Drive, Suite 15 Camarillo, CA 931 85-987-8866 Direct Vacancy Rate Total vacant direct space (vacant space for lease or sale from the landlord or owner) divided by the total rentable square footage for existing buildings only. Vacancy W/ Sublet Rate Total vacant direct space and sublease space divided by the total rentable square footage for existing buildings only. Gross Absorption The total change in occupied space over a given period of time, counting space that is occupied but not space that is vacated by tenants. Gross absorption differs from leasing activity, which is the sum of all space leased over a certain period of time. SAN GABRIEL VALLEY, CALIFORNIA 13181 Crossroads Pkwy. N, Suite 1 City of Industry, CA 91746 562-695-7244 SOUTH BAY, CALIFORNIA 125 W. 19th Street, Suite 42 Gardena, CA 9248 31-538-67 INLAND EMPIRE, CALIFORNIA 3595 E. Inland Empire Boulevard, Bldg. 5 Ontario, CA 91764 99-98-1234 PHOENIX ARIZONA 172 E. Highland Avenue, Suite 12 Phoenix, AZ 8516 62-957-73 The information contained in this report has been obtained from sources deemed reliable and has incorporated fourth-party data which has not been independently verified by DAUM. While we do not doubt its accuracy, DAUM makes no guarantee or warranty as to its completeness or accuracy. Due to the dynamic (constantly changing) database which DAUM uses to compile and analyze markets contained in this report, previously published statistics may vary from the data published in this report. Statistics and data have been revised to reflect changes in the following categories: existing buildings being verified and added to the database, new or revised occupancy information gathered, new construction being added to the inventory, building demolitions and renovations, as well as other factors that would necessitate revisions to the data and the properties surveyed. This methodology allows us to present the most current and up-to-date information, trend analysis and comparative statistics for this report. Net Absorption The net change in occupied space over a given period of time, calculated by summing all the positive changes in occupancy (move ins) and subtracting all the negative changes in occupancy (move outs). Under Construction Planned buildings for which construction has started but have not yet been granted a Certificate of Occupancy. Planned buildings are not included. Completed in 217 New buildings with original construction completed in the year 217 and granted a Certificate of Occupancy. Renovated buildings are not included.

LOS ANGELES WEST/SOUTH OFFICE FOURTH QUARTER 217 QUICK STATS OFFICE Direct Vacancy 12.2% Overall Vacancy 13.4% Lease Rate FSG $3.67 Gross Absorption Under Construction MARKET TRENDS Current Quarter 1,679,425 SF 629,9 SF Change from Last Quarter Year Overall Vacancy Rental Rates Gross Absorption Under Construction SUMMARY & OUTLOOK The Los Angeles West/South office market witnessed vacancy rates decrease from 13.8% to 13.4%, during the quarter. Average rents increased 7.%, year over year, moving from $3.43 FSG to $3.67 FSG. Gross absorption finished the quarter with 1.7 million square feet of activity, while net absorption gained 39, square feet of occupied space. Under construction activity was unchanged with 63, square feet currently underway, as the market added 73, square feet of new space for the year. Unemployment rates have declined from 4.7% to 4.2%, year over year, and is equal to California (4.2%) and above the U.S. average of 3.9%. The office market fundamentals remain solid, as the market has recorded positive net absorption in eight of the past eleven quarters, totaling 2.4 million square feet of occupied space gains. Job creation remains the key to increased office demand. In December, non-farm employment grew by 1.2%, year over year, adding 54,7 new jobs, which should keep vacancy rates moving lower with limited amounts of new construction underway. The investment and sale market for office buildings in Los Angeles County continues to see strong activity levels as the total dollar sales volume in 216 was its strongest year ever with $9.6 billion, and followed that up with $8.1 billion in 217, its second highest total. Median sale prices finished down 1.4% on the year, but still remains near a 1-year high. The capital markets remain solid with plenty of liquidity, but we expect interest rates to rise further in the coming year. We expect vacancy levels to continue to trend lower in the coming quarters, with rents expected to increase 3% to 5% for most submarkets in the coming year. VACANCY & NET ABSORPTION ECONOMIC STATS Current Month Previous Year Dec. 17 Dec. 16 Unemployment 4.2% 4.7% Rate (MSA) Change in # +8,3 +54,7 Of Jobs (MSA) % Change for +.2% +1.2% Jobs (MSA) 1,, 8, 6, 4, 2, (2,) (4,) 2.% 18.% 16.% 14.% 12.% 1.% (6,) Net Absorption SF Overall Vacancy 8.%

LOS ANGELES WEST/SOUTH OFFICE FOURTH QUARTER 217 VACANCY RENTAL RATES & TIME ON THE MARKET 2.% $3.8 16. 18.% 16.% 14.% 12.% 1.% $3.6 $3.4 $3.2 $3. $2.8 $2.6 $2.4 $2.2 14. 12. 1. 8. 6. 4. 2. 8.% $2.. Direct Vacancy Overall Vacancy Avg. Rent (FSG) Time to Lease (Months) Overall vacancy rates for the Los Angeles West/South office market (including sublease space) decreased during the quarter, moving from 13.8% to 13.4%. During the quarter, total vacancy in the Westside market decreased from 12.8% to 12.6%, while overall vacancy in the South Bay market decreased from 15.4% to 14.6%. Since the fourth quarter of 216, overall vacancy in the Los Angeles West/South market has edged higher from 13.3% to 13.4%, but remains well below its 5-year average of 15.%. ABSORPTION Average asking rates increased 7.%, year over year, moving from a weighted average of $3.43 FSG to $3.67 FSG. During the same period, average asking rents in the Westside market have increased 6.8%, moving from $4.59 FSG to $4.9 FSG, while average asking rents in the South Bay market have increased 7.5%, moving from $2.27 FSG to $2.44 FSG. Average asking rents for the combined market increased.3% during the quarter, moving from $3.66 FSG to $3.67 FSG, while median time to lease decreased from 1.2 months to 9. months. CONSTRUCTION ACTIVITY 3,, 1,2, 2,5, 1,, 2,, 8, 1,5, 1,, 6, 5, 4, 2, (5,) (1,,) Net Absorption SF Gross Absorption SF SF Newly Completed SF Under Construction During the quarter, gross absorption totaled 1.7 million square feet of activity, down 17% compared to the previous quarter, and lower by 2% compared to a year ago. Net absorption finished the quarter in positive territory, gaining 39, square feet of occupied space and finished the year with a gain of 581, square feet. In 216, the market gained 723, square feet, after gaining 1. million square feet in 215, +1.8 million square feet during 214, and a gain of 52, square feet in 213. Overall demand still remains strong through the fourth quarter, and we expect activity and growth to continue as we move into the first half of 218. Under construction activity was unchanged during the quarter, with 63, square feet currently underway, as the market delivered 73, square feet of new space for the year. In 216, the market added 12, square feet of new space, after delivering 317, square feet of new space in 215. During 214, the market added 79, square feet, after delivering 7, square feet in 213. During the past five years, new construction deliveries have averaged 26, square feet of new space, annually. We expect new construction to remain at similar levels as we move into the coming quarters.

LOS ANGELES WEST/SOUTH OFFICE FOURTH QUARTER 217 MARKET SNAPSHOT Total Direct Direct Total Total Inventory Vacant Vacancy Vacant w/ Sublet Vacant w/ Sublet SUBMARKETS Square Footage Square Footage Rate Square Footage Rate South Bay 34,584,556 4,694,257 13.6% 5,61,138 14.6% Westside 53,657,86 6,99,395 11.4% 6,771,322 12.6% L.A.- West / South 88,241,642 1,793,652 12.2% 11,832,46 13.4% Office Market Inventory Westside 61% South Bay 39% 16.% 14.% 12.% 1.% 8.% 6.% 4.% 2.%.% Office Vacancy Rates South Bay Westside Vacancy- Direct Vacancy w/ Sublease Rate Average Low-High Square Feet Square Feet Gross Absorption Asking Rent Asking Rent Built in Under Square Feet SUBMARKETS FSG Range FSG 217 Construction Current Quarter South Bay $2.44 $1.-$4.5 116,744 637,673 Westside $4.9 $1.85-$8.5 729,477 513,156 1,41,752 L.A.- West / South $3.67 $1.-$8.5 729,477 629,9 1,679,425 $6. Office Rental Rates 1,6, New Construction Activity $5. 1,4, $4. 1,2, 1,, $3. 8, $2. 6, $1. $. South Bay Westside L.A.- West / South Average Asking Rent FSG 4, 2, South Bay Westside L.A.- West / South Square Feet Built in 217 Square Feet Under Construction

LOS ANGELES WEST/SOUTH OFFICE FOURTH QUARTER 217 MARKET SNAPSHOT SOUTH BAY Total Direct Direct Total Total Inventory Vacant Vacancy Vacant w/ Sublet Vacant w/ Sublet SUBMARKETS Square Footage Square Footage Rate Square Footage Rate 19th Street Corridor 2,956,241 643,12 21.8% 738,671 25.% Beach Cities 1,678,937 139,287 8.3% 238,63 14.2% El Segundo 9,319,53 854,796 9.2% 951,899 1.2% Hawthorne/Gardena 956,117 23,65 21.3% 23,65 21.3% LAX 4,444,933 1,46,214 31.6% 1,412,287 31.8% Long Beach: Downtown 5,679,575 655,837 11.5% 684,79 12.1% Long Beach: Suburban 4,666,529 332,17 7.1% 364,4 7.8% Torrance 4,882,721 459,336 9.4% 467,171 9.6% L.A.- South Bay 34,584,556 4,694,257 13.6% 5,61,138 14.6% LB: Suburban 13% LB: Downtow 16% Office Market Inventory Torrance 14% 19th St 9% LAX 13% Beach Cities 5% El Segundo 27% Hawthorne/ Gardena 3% 35.% 3.% 25.% 2.% 15.% 1.% 5.%.% Office Vacancy Rates Vacancy- Direct Vacancy w/ Sublease Rate Average Low-High Square Feet Square Feet Gross Absorption Asking Rent Asking Rent Built in Under Square Feet SUBMARKETS FSG Range FSG 217 Construction Current Quarter 19th Street Corridor $2.34 $1.-$3. 85,847 Beach Cities $2.45 $1.95-$4.5 36,744 18,819 El Segundo $3.45 $2.65-$4.5 8, 128,599 Hawthorne/Gardena $1.72 $1.2-$2.5 17,758 LAX $1.9 $1.25-$4.25 49,44 Long Beach: Downtown $2.4 $1.7-$3.25 85,625 Long Beach: Suburban $2.3 $1.1-$3.25 32,235 Torrance $2.78 $1.3-$4.5 129,386 L.A.- South Bay $2.44 $1.-$4.5 116,744 637,673 $4. $3.5 $3. $2.5 $2. $1.5 $1. $.5 $. Office Rental Rates 1,, 9, 8, 7, 6, 5, 4, 3, 2, 1, New Construction Activity Average Asking Rent FSG Square Feet Built in 217 Square Feet Under Construction

LOS ANGELES WEST/SOUTH OFFICE FOURTH QUARTER 217 MARKET SNAPSHOT WESTSIDE Total Direct Direct Total Total Inventory Vacant Vacancy Vacant w/ Sublet Vacant w/ Sublet SUBMARKETS Square Footage Square Footage Rate Square Footage Rate Beverly Hills 8,337,748 847,747 1.2% 967,16 11.6% Brentwood 3,844,454 317,786 8.3% 347,3 9.% Century City 1,652,756 912,947 8.6% 992,11 9.3% Culver City 4,469,885 956,155 21.4% 1,51,277 23.5% Marina Del Rey 6,67,344 1,184,326 17.8% 1,41,562 21.% Olympic Corridor 3,24,223 165,751 5.2% 184,672 5.8% Palisades / Malibu 336,776 75,281 22.4% 92,486 27.5% Santa Monica 9,578,897 798,34 8.3% 866,934 9.1% West Los Angeles 1,334,232 162,724 12.2% 18,317 13.5% Westwood 5,227,771 678,644 13.% 687,81 13.2% L.A.- Westside 53,657,86 6,99,395 11.4% 6,771,322 12.6% Palisades/ Malibu 1% Office Market Inventory Santa Monica 18% Olympic Corridor 5% West LA Westwood 2% 1% Marina Del Rey 12% Beverly Hills 16% Brentwood 7% Culver City 8% Century City 2% 3.% 25.% 2.% 15.% 1.% 5.%.% Office Vacancy Rates Vacancy- Direct Vacancy w/ Sublease Rate Average Low-High Square Feet Square Feet Gross Absorption Asking Rent Asking Rent Built in Under Square Feet SUBMARKETS FSG Range FSG 217 Construction Current Quarter Beverly Hills $5.35 $2.75-$8.5 32,45 48,8 149,555 Brentwood $4.42 $3.75-$5.25 75,186 Century City $4.68 $3.55-$6.5 146,26 Culver City $4.5 $2.25-$5.75 278,247 165,356 42,735 Marina Del Rey $5.1 $1.85-$5.95 418,78 155, 175,62 Olympic Corridor $4.28 $2.3-$6.25 78,855 Palisades / Malibu $5.91 $3.75-$7. 28 Santa Monica $5.77 $3.-$8.25 144, 232,555 West Los Angeles $3.57 $2.5-$4.35 4,477 Westwood $4.37 $2.95-$4.95 1,283 L.A.- Westside $4.9 $1.85-$8.5 729,477 513,156 1,41,752 $7. $6. $5. $4. $3. $2. $1. $. Office Rental Rates 1,, 9, 8, 7, 6, 5, 4, 3, 2, 1, New Construction Activity Average Asking Rent FSG Square Feet Built in 217 Square Feet Under Construction

LOS ANGELES WEST/SOUTH OFFICE FOURTH QUARTER 217 SOUTHERN CALIFORNIA OFFICE BUILDING SALE TREND ANALYSIS TOTAL SALES TRANSACTIONS Market 28 29 21 211 212 213 214 215 216 217 LA County 517 347 355 552 75 769 891 1,54 99 1,156 Orange County 247 13 151 25 294 347 334 425 392 41 Inland Empire 284 168 156 249 266 328 372 432 41 58 Ventura County 51 24 29 54 59 58 17 86 11 19 Totals 1,99 642 691 1,6 1,369 1,52 1,74 1,997 1,893 2,183 TOTAL TRANSACTION DOLLAR VALUE (MILLIONS) Bldg. SF 28 29 21 211 212 213 214 215 216 217 LA County $2,664.2 $753.7 $1,159.9 $2,72. $3,239.6 $5,953.1 $7,355.7 $4,843.9 $9,623.6 $8,57.2 Orange County $725.3 $364.9 $521.9 $625.9 $783.3 $1,385.1 $1,596.8 $2,797.9 $2,55.6 $2,273.2 Inland Empire $359.1 $85.7 $96. $13.2 $166.4 $237.5 $332.5 $642.6 $46.9 $554.2 Ventura County $93.9 $29.6 $81.3 $56.4 $43.2 $57.1 $246.9 $164.5 $169.4 $138.1 Totals $3,842.5 $1,233.9 $1,859.2 $2,884.6 $4,232.5 $7,632.8 $9,531.9 $8,448.9 $12,759.6 $11,22.6 TOTAL SQUARE FEET SOLD Bldg. SF 28 29 21 211 212 213 214 215 216 217 LA County 11,854,67 5,541,317 6,23,886 9,775,98 15,126,197 23,598,267 23,584,264 17,56,65 25,141,916 26,94,94 Orange County 3,283,136 2,23,473 3,59,352 3,865,353 6,76,432 7,31,297 8,173,268 12,235,143 11,838,955 9,14,83 Inland Empire 2,124,94 957,23 1,94,462 1,732,294 2,329,749 2,463,683 2,876,7 5,361,356 3,443,681 5,215,681 Ventura County 476,21 141,646 37,79 397,973 517,872 679,369 1,547,138 1,66,791 1,183,29 1,157,854 Totals 17,738,767 8,663,459 11,141,779 15,77,718 24,5,25 34,42,616 36,181,37 36,169,355 41,67,842 41,573,242 AVERAGE PRICE / SF Bldg. SF 28 29 21 211 212 213 214 215 216 217 LA County $273.87 $228.75 $235.36 $254.4 $264.17 $281.38 $344.77 $36.39 $429.23 $369.62 Orange County $293.51 $195.38 $182.39 $192.7 $211.65 $28.38 $27.78 $259.77 $264.8 $273.65 Inland Empire $212.76 $181.29 $13.41 $122.44 $135.29 $13.33 $144.25 $141.73 $17.69 $161.21 Ventura County $27.86 $248.34 $328.13 $182.62 $13.87 $14.6 $29.4 $189.67 $182.13 $189.78 Averages $268.41 $216.4 $21.92 $222.97 $235.55 $251.27 $292.9 $262.77 $353.81 $317.45 MEDIAN PRICE / SQUARE FOOT Bldg. SF 28 29 21 211 212 213 214 215 216 217 LA County $287.16 $26.95 $211.87 $24.94 $243.91 $233.31 $266.2 $283.91 $298.2 $293.7 Orange County $314.94 $224.41 $192.32 $216.15 $19. $24.49 $223.61 $246.57 $28.19 $259.2 Inland Empire $245.57 $187.29 $165.49 $135.16 $119.28 $125.7 $135.5 $132.88 $16.5 $169.4 Ventura County $253.62 $297.9 $22.17 $215.19 $183.47 $175.15 $18.41 $213.19 $19.56 $29.7 Median Average $286.42 $244.87 $2.89 $2.28 $216.91 $218.13 $242.37 $246.81 $278.51 $268.17 MEDIAN $ PSF INCREASE Bldg. SF 29 21 211 212 213 214 215 216 217 LA County -9.1% -18.8% -3.3% 19.% -4.3% 14.% 6.7% 5.% -1.4% Orange County -28.7% -14.3% 12.4% -12.1% 7.6% 9.4% 1.3% 13.6% -7.6% Inland Empire -23.7% -11.6% -18.3% -11.7% 4.9% 8.% -1.6% 2.8% 5.5% Ventura County 17.1% -31.9% 6.4% -14.7% -4.5% 3.% 18.2% -1.6% 1.% Totals -14.5% -18.% -.3% 8.3%.6% 11.1% 1.8% 12.8% -3.7% The following information has been obtained from sources deemed reliable. While we do not doubt its accuracy, we make no warranty or representation about it. This report contains verified arms-length transactions, but excludes all portfolio sales.

Median Price PSF Annual Increase Square Footage Sold Average Price PSF Number of Transactions Transaction $ Volume (Millions) LOS ANGELES WEST/SOUTH OFFICE FOURTH QUARTER 217 SOUTHERN CALIFORNIA OFFICE BUILDING SALE TREND ANALYSIS Number of Transactions Transaction Volume $ 1,4 $12,. 1,2 $1,. 1, 8 6 $8,. $6,. 4 $4,. 2 $2,. 28 29 21 211 212 213 214 215 216 217 LA County 517 347 355 552 75 769 891 1,54 99 1,156 Orange County 247 13 151 25 294 347 334 425 392 41 Inland Empire 284 168 156 249 266 328 372 432 41 58 Ventura County 51 24 29 54 59 58 17 86 11 19 $. 28 29 21 211 212 213 214 215 216 217 LA County $2,664.2 $753.7 $1,159.9 $2,72. $3,239.6 $5,953.1 $7,355.7 $4,843.9 $9,623.6 $8,57.2 Orange County $725.3 $364.9 $521.9 $625.9 $783.3 $1,385.1 $1,596.8 $2,797.9 $2,55.6 $2,273.2 Inland Empire $359.1 $85.7 $96. $13.2 $166.4 $237.5 $332.5 $642.6 $46.9 $554.2 Ventura County $93.9 $29.6 $81.3 $56.4 $43.2 $57.1 $246.9 $164.5 $169.4 $138.1 Square Footage Sold Average Price PSF 3,, $5. $45. 25,, 2,, 15,, $4. $35. $3. $25. 1,, $2. $15. 5,, $1. $5. 28 29 21 211 212 213 214 215 216 217 11,854,67 5,541,317 6,23,886 9,775,98 15,126,197 23,598,267 23,584,264 17,56,65 25,141,916 26,94,94 LA County Orange County 3,283,136 2,23,473 3,59,352 3,865,353 6,76,432 7,31,297 8,173,268 12,235,143 11,838,955 9,14,83 Inland Empire 2,124,94 957,23 1,94,462 1,732,294 2,329,749 2,463,683 2,876,7 5,361,356 3,443,681 5,215,681 Ventura County 476,21 141,646 37,79 397,973 517,872 679,369 1,547,138 1,66,791 1,183,29 1,157,854 Median Price PSF $. 28 29 21 211 212 213 214 215 216 217 LA County $273.87 $228.75 $235.36 $254.4 $264.17 $281.38 $344.77 $36.39 $429.23 $369.62 Orange County $293.51 $195.38 $182.39 $192.7 $211.65 $28.38 $27.78 $259.77 $264.8 $273.65 Inland Empire $212.76 $181.29 $13.41 $122.44 $135.29 $13.33 $144.25 $141.73 $17.69 $161.21 Ventura County $27.86 $248.34 $328.13 $182.62 $13.87 $14.6 $29.4 $189.67 $182.13 $189.78 % Change Median Price PSF $35. $325. $3. $275. $25. $225. $2. $175. $15. $125. $1. $75. $5. $25. $. 28 29 21 211 212 213 214 215 216 217 LA County $287.16 $26.95 $211.87 $24.94 $243.91 $233.31 $266.2 $283.91 $298.2 $293.7 Orange County $314.94 $224.41 $192.32 $216.15 $19. $24.49 $223.61 $246.57 $28.19 $259.2 Inland Empire $245.57 $187.29 $165.49 $135.16 $119.28 $125.7 $135.5 $132.88 $16.5 $169.4 Ventura County $253.62 $297.9 $22.17 $215.19 $183.47 $175.15 $18.41 $213.19 $19.56 $29.7 3.% 2.% 1.%.% -1.% -2.% -3.% -4.% 29 21 211 212 213 214 215 216 217 LA County -9.1% -18.8% -3.3% 19.% -4.3% 14.% 6.7% 5.% -1.4% Orange County -28.7% -14.3% 12.4% -12.1% 7.6% 9.4% 1.3% 13.6% -7.6% Inland Empire -23.7% -11.6% -18.3% -11.7% 4.9% 8.% -1.6% 2.8% 5.5% Ventura County 17.1% -31.9% 6.4% -14.7% -4.5% 3.% 18.2% -1.6% 1.%

LOS ANGELES WEST/SOUTH OFFICE FOURTH QUARTER 217 MARKET REPORT OVERVIEW SOUTHERN CALIFORNIA MARKET MAP METHODOLOGY & TERMINOLOGY Methodology Non-owner occupied, multi-tenant, office buildings that are 3, square feet and greater. Direct Vacant SF Space that is vacant and ready for occupancy by a user. The space is being offered for lease or sale directly from the landlord. Total Vacant W/ Sublet SF Space that is vacant and ready for occupancy by a user. The space is being offered for lease or sale by the landlord or for sublease by the current tenant. DAUM OFFICES LOS ANGELES, CALIFORNIA 81 S. Figueroa Street, Suite 6 Los Angeles, CA 917 213-626-911 LOS ANGELES NORTH, CALIFORNIA 2182 Burbank Boulevard, Suite 21 Woodland Hills, CA 91367 818-887-36 SANTA CLARITA VALLEY, CALIFORNIA 28494 Westinghouse Place, Suite 312 Valencia, CA 91355 661-75-2299 MID-COUNTIES, CALIFORNIA 1381 Cerritos Corporate Drive, Suite C Cerritos, CA 973 562-27-33 ORANGE COUNTY, CALIFORNIA 44 MacArthur Boulevard, Suite 95 Newport Beach, CA 9266 949-724-19 VENTURA & SANTA BARBARA, CALIFORNIA 751 Daily Drive, Suite 15 Camarillo, CA 931 85-987-8866 Direct Vacancy Rate Total vacant direct space (vacant space for lease or sale from the landlord or owner) divided by the total rentable square footage for existing buildings only. Vacancy W/ Sublet Rate Total vacant direct space and sublease space divided by the total rentable square footage for existing buildings only. Gross Absorption The total change in occupied space over a given period of time, counting space that is occupied but not space that is vacated by tenants. Gross absorption differs from leasing activity, which is the sum of all space leased over a certain period of time. SAN GABRIEL VALLEY, CALIFORNIA 13181 Crossroads Pkwy. N, Suite 1 City of Industry, CA 91746 562-695-7244 SOUTH BAY, CALIFORNIA 125 W. 19th Street, Suite 42 Gardena, CA 9248 31-538-67 INLAND EMPIRE, CALIFORNIA 3595 E. Inland Empire Boulevard, Bldg. 5 Ontario, CA 91764 99-98-1234 PHOENIX ARIZONA 172 E. Highland Avenue, Suite 12 Phoenix, AZ 8516 62-957-73 The information contained in this report has been obtained from sources deemed reliable and has incorporated fourth-party data which has not been independently verified by DAUM. While we do not doubt its accuracy, DAUM makes no guarantee or warranty as to its completeness or accuracy. Due to the dynamic (constantly changing) database which DAUM uses to compile and analyze markets contained in this report, previously published statistics may vary from the data published in this report. Statistics and data have been revised to reflect changes in the following categories: existing buildings being verified and added to the database, new or revised occupancy information gathered, new construction being added to the inventory, building demolitions and renovations, as well as other factors that would necessitate revisions to the data and the properties surveyed. This methodology allows us to present the most current and up-to-date information, trend analysis and comparative statistics for this report. Net Absorption The net change in occupied space over a given period of time, calculated by summing all the positive changes in occupancy (move ins) and subtracting all the negative changes in occupancy (move outs). Under Construction Planned buildings for which construction has started but have not yet been granted a Certificate of Occupancy. Planned buildings are not included. Completed in 217 New buildings with original construction completed in the year 217 and granted a Certificate of Occupancy. Renovated buildings are not included.

Section II ORANGE COUNTY

ORANGE COUNTY INDUSTRIAL FOURTH QUARTER 217 QUICK STATS Direct Vacancy 2.3% Overall Vacancy 2.7% Lease Rate NNN $.91 Gross Absorption Under Construction MARKET TRENDS Current Quarter 4,283,991 SF 963,138 SF Change from Last Quarter Year Overall Vacancy Rental Rates Gross Absorption Under Construction INDUSTRIAL SUMMARY & OUTLOOK The Orange County industrial market witnessed vacancy rates remain unchanged during the quarter, remaining at 2.7%. Average asking rents increased 5.8%, year over year, moving from $.86nnn to $.91nnn. Gross absorption finished the quarter with 4.3 million square feet of activity, while net absorption gained 39, square feet of occupied space. Under construction activity decreased during the quarter with 963, square feet currently underway, as the market delivered 77, square feet of new space for the year. Unemployment rates declined from 3.5% to 2.8%, year over year, and is well below California (4.2%) and the U.S. at 3.9%. The industrial market continues to see available supply remain at extremely low levels, and while new construction has recently been at higher levels, it still has not been able to keep pace with strong demand, resulting in vacancy remaining near all-time lows and rental rates still rising rapidly. Demand for industrial space will continue to be driven by domestic and global consumption levels. In 217, the Los Angeles and Long Beach Port container traffic recorded its highest container total ever with 16.89 million TEU s, up 8% from 216 and 7% higher than its second highest year during 26. The investment and sale market for industrial real estate in Orange County remains extremely strong, as total transaction volume reached a record high in 216 with $1.3 billion, and was followed up by $1.1 billion in 217, its second highest total. Median prices in 217 increased 13.3%, year over year and remain at an all-time high of $24 PSF. The capital markets remain solid with plenty of liquidity, but we expect interest rates to continue to rise in the coming year. The overall industrial market remains a landlord controlled market, and we expect vacancy to remain in the 2% to 3% range, with rents expected to rise another 4% to 6% in the coming year. VACANCY & NET ABSORPTION ECONOMIC STATS Current Month Previous Year 2,, 1,5, 7.% 6.% Dec. 17 Dec. 16 Unemployment 2.8% 3.5% Rate (MSA) Change in # +6,7 +23,6 Of Jobs (MSA) % Change for +.4% +1.5% Jobs (MSA) 1,, 5, (5,) (1,,) (1,5,) 5.% 4.% 3.% 2.% 1.%.% Net Absorption SF Overall Vacancy

ORANGE COUNTY INDUSTRIAL FOURTH QUARTER 217 VACANCY RENTAL RATES & TIME ON THE MARKET 7.% $1. 9. 6.% 5.% 4.% $.9 $.8 $.7 8. 7. 6. 5. 3.% 2.% 1.% $.6 $.5 $.4 4. 3. 2. 1..% $.3. Direct Vacancy Overall Vacancy Avg. Rent (NNN) Time to Lease (Months) Overall vacancy rates (including sublease space) were unchanged during the quarter, remaining at 2.7%. Of the four major submarkets within the Orange County industrial market, the North County submarket ended the quarter with the lowest total vacancy of 1.9%, followed by the West County at 2.6%, South County at 3.2%, and the Airport submarket finishing the quarter at 3.6%. Since the fourth quarter of 216, overall vacancy has increased from 2.4% to 2.7%, but still remains near its lowest level in more than a decade. ABSORPTION Standard industrial asking rents increased 5.8%, year over year, moving from $.86nnn to $.91nnn. Of the four major submarkets within the Orange County market, the South County submarket ended the quarter with the highest standard industrial rental rate of $1.6nnn, followed by the Airport at $.93nnn, the West County at $.87nnn, and the North County submarket finishing the quarter at $.82nnn. Average industrial asking rents increased 2.3% during the quarter, moving from $.89nnn to $.91nnn, while the median time to lease was unchanged at 2.9 months. CONSTRUCTION ACTIVITY 7,, 1,4, 6,, 1,2, 5,, 4,, 3,, 2,, 1,, (1,,) 1,, 8, 6, 4, 2, (2,,) Net Absorption SF Gross Absorption SF SF Newly Completed SF Under Construction Gross absorption finished with 4.3 million square feet of activity during the quarter, down 1% from the previous quarter, but higher by 4% compared to a year ago. Net absorption finished the quarter in positive territory, gaining 391, square feet of occupied space. During 216, the market gained 1.7 million square feet, after gaining 4.4 million square feet during 215. In 214, the market gained 4.1 million square feet, after gaining 3.9 million square feet during 213. Overall activity and demand still remains strong, and we expect demand to remain at similar levels in the coming quarters. As new supply is delivered, we expect it to be absorbed very quickly. Under construction activity moved lower during the quarter, with 963, square feet currently underway, as the market delivered 77, square feet of new space for the year. In 216, the market added 815, square feet, after delivering 1. million square feet during 215, 1.2 million square feet in 214, and 51, square feet in 213. During the past five years, the market has averaged approximately 86, square feet of new deliveries, annually. Construction activity should continue to level off in the coming quarters, as available land for industrial development remains low, along with high land values and rising construction costs, making new development more challenging.

ORANGE COUNTY INDUSTRIAL FOURTH QUARTER 217 MARKET SNAPSHOT Total Direct Direct Total Vacant Vacancy Inventory Vacant Vacancy w/ Sublet with Sublet SUBMARKETS Square Footage Square Footage Rate Square Footage Rate Airport 79,418,159 2,793,179 3.5% 2,86,514 3.6% North County 126,494,77 2,323,754 1.8% 2,429,56 1.9% South County 45,129,715 1,133,249 2.5% 1,426,177 3.2% West County 48,626,74 688,736 1.4% 1,239,965 2.6% Orange County Totals 299,668,655 6,938,918 2.3% 7,955,712 2.7% Industrial Market Inventory 4.% Industrial Vacancy Rates South County 15% West County 16% Airport 27% 3.5% 3.% 2.5% 2.% North County 42% 1.5% 1.%.5%.% Airport North County South County West County Direct Vacancy Vacancy with Sublet Average Average Square Feet Square Feet Gross Absorption Industrial R&D / Flex Built in Under Square Feet SUBMARKETS Rent Rent 217 Construction Current Quarter Airport $.93 $1.28 51,45 1,11,157 North County $.82 $1.14 613,826 963,138 1,75,38 South County $1.6 $1.35 736,95 West County $.87 $1.2 41,668 74,576 Orange County Totals $.91 $1.22 76,944 963,138 4,283,991 $1.6 $1.4 $1.2 $1. $.8 $.6 $.4 $.2 $. Airport Industrial Rental Rates North County Average Industrial Rent South County West County Orange County Totals Average R&D / Flex Rent 1,8, 1,6, 1,4, 1,2, 1,, 8, 6, 4, 2, New Construction Activity Airport North County Square Feet Built in 217 South County West County Orange County Totals Square Feet Under Construction

ORANGE COUNTY INDUSTRIAL FOURTH QUARTER 217 SOUTHERN CALIFORNIA INDUSTRIAL SALES TREND ANALYSIS TOTAL SALES TRANSACTIONS Market 28 29 21 211 212 213 214 215 216 217 LA County 99 523 79 1,43 1,442 1,195 1,346 1,59 1,49 1,723 Orange County 216 163 21 278 445 399 35 435 47 51 Inland Empire 389 293 288 383 56 57 594 679 646 848 Ventura County 65 59 53 83 92 1 19 111 137 131 Totals 1,579 1,38 1,26 1,787 2,539 2,264 2,399 2,815 2,662 3,23 TOTAL TRANSACTION DOLLAR VALUE (MILLIONS) Bldg. SF 28 29 21 211 212 213 214 215 216 217 LA County $2,9.7 $855. $1,238.9 $1,564.7 $2,145.2 $2,31.2 $2,297.7 $3,255.2 $2,947.6 $3,46.7 Orange County $525.4 $268.7 $425.3 $622.4 $646.1 $856.6 $96.6 $97.3 $1,269.3 $1,137.4 Inland Empire $1,315.6 $61.1 $879.4 $1,2.2 $94.1 $1,289.8 $1,488.8 $1,571. $1,396.4 $1,944. Ventura County $19. $41.7 $13.4 $16. $191.3 $117.5 $217.8 $152.9 $198.4 $221.2 Totals $4,4.7 $1,775.5 $2,647. $3,295.3 $3,886.7 $4,295.1 $4,965. $5,886.3 $5,811.7 $6,79.3 TOTAL SQUARE FEET SOLD Bldg. SF 28 29 21 211 212 213 214 215 216 217 LA County 21,54,775 12,72,239 22,111,368 21,441,991 32,187,47 23,536,52 23,69,595 32,79,793 23,877,886 29,429,84 Orange County 3,876,845 3,227,465 4,642,255 6,932,955 9,112,749 9,451,638 9,421,962 8,91,899 8,791,77 8,915,84 Inland Empire 2,3,636 12,127,851 19,912,668 18,246,26 18,677,764 23,322,756 22,993,923 21,78,64 15,61,71 2,829,822 Ventura County 1,334,814 446,275 1,217,138 1,386,321 3,496,396 1,669,355 3,123,237 1,85,294 2,79,797 2,767,523 Totals 46,27,7 28,53,83 47,883,429 48,7,293 63,474,379 57,98,269 59,229,717 64,612,626 5,981,1 61,942,953 AVERAGE PRICE / SF Bldg. SF 28 29 21 211 212 213 214 215 216 217 LA County $119.13 $93.17 $72.12 $97.74 $96.81 $11.18 $114.27 $131.77 $151.36 $157.36 Orange County $157.9 $124.68 $12.72 $12.64 $11.4 $18.89 $129.56 $152.2 $163.78 $169.95 Inland Empire $83.14 $54.88 $53.35 $62.4 $66.74 $7.91 $73.69 $9.36 $13.75 $116. Ventura County $132.16 $13.65 $92.43 $11.31 $68.76 $84.3 $93.17 $15.72 $1.23 $17.39 Averages $17.2 $81.4 $67.79 $85.12 $88.31 $89.78 $99.83 $119.88 $136.21 $143.3 MEDIAN PRICE / SQUARE FOOT Bldg. SF 28 29 21 211 212 213 214 215 216 217 LA County $14.98 $115.93 $13.97 $17.96 $18.36 $114.1 $127.19 $142. $158.46 $177.59 Orange County $19.78 $15. $126.25 $125.4 $126.6 $136.89 $145. $169. $179.67 $23.87 Inland Empire $123.55 $86.85 $75.66 $7.64 $72.62 $76.33 $88.42 $1. $118.1 $125.38 Ventura County $151.19 $159.57 $114.43 $14.9 $99.77 $97.1 $113.66 $124.7 $122.33 $14.46 Median Average $137.91 $18.1 $94.62 $96.13 $99.91 $12.13 $114.26 $131.7 $147.82 $162.16 MEDIAN $ PSF INCREASE Bldg. SF 29 21 211 212 213 214 215 216 217 LA County -17.8% -1.3% 3.8%.4% 5.3% 11.5% 11.6% 11.6% 12.1% Orange County -21.4% -15.8% -1.%.8% 8.6% 5.9% 16.6% 6.3% 13.5% Inland Empire -29.7% -12.9% -6.6% 2.8% 5.1% 15.8% 13.1% 18.% 6.2% Ventura County 5.5% -28.3% -9.% -4.2% -2.7% 17.1% 9.7% -1.9% 14.8% Totals -21.6% -12.5% 1.6% 3.9% 2.2% 11.9% 14.7% 12.8% 9.7% The following information has been obtained from sources deemed reliable. While we do not doubt its accuracy, we make no warranty or representation about it. This report contains verified arms-length transactions, but excludes all portfolio sales.

Median Price PSF Annual Increase Square Footage Sold Average Price PSF Number of Transactions Transaction $ Volume (Millions) ORANGE COUNTY INDUSTRIAL FOURTH QUARTER 217 SOUTHERN CALIFORNIA INDUSTRIAL SALES TREND ANALYSIS Number of Transactions Transaction Volume $ 2, 1,8 1,6 1,4 1,2 1, 8 6 4 2 $4,. $3,5. $3,. $2,5. $2,. $1,5. $1,. $5. 28 29 21 211 212 213 214 215 216 217 LA County 99 523 79 1,43 1,442 1,195 1,346 1,59 1,49 1,723 Orange County 216 163 21 278 445 399 35 435 47 51 Inland Empire 389 293 288 383 56 57 594 679 646 848 Ventura County 65 59 53 83 92 1 19 111 137 131 35,, 3,, Square Footage Sold $. 28 29 21 211 212 213 214 215 216 217 LA County $2,9.7 $855. $1,238.9 $1,564.7 $2,145.2 $2,31.2 $2,297.7 $3,255.2 $2,947.6 $3,46.7 Orange County $525.4 $268.7 $425.3 $622.4 $646.1 $856.6 $96.6 $97.3 $1,269.3 $1,137.4 Inland Empire $1,315.6 $61.1 $879.4 $1,2.2 $94.1 $1,289.8 $1,488.8 $1,571. $1,396.4 $1,944. Ventura County $19. $41.7 $13.4 $16. $191.3 $117.5 $217.8 $152.9 $198.4 $221.2 $18. $16. Average Price PSF 25,, 2,, $14. $12. $1. 15,, $8. 1,, 5,, $6. $4. $2. 28 29 21 211 212 213 214 215 216 217 21,54,775 12,72,239 22,111,368 21,441,991 32,187,47 23,536,52 23,69,595 32,79,793 23,877,886 29,429,84 LA County Orange County 3,876,845 3,227,465 4,642,255 6,932,955 9,112,749 9,451,638 9,421,962 8,91,899 8,791,77 8,915,84 Inland Empire 2,3,636 12,127,851 19,912,668 18,246,26 18,677,764 23,322,756 22,993,923 21,78,64 15,61,71 2,829,822 Ventura County 1,334,814 446,275 1,217,138 1,386,321 3,496,396 1,669,355 3,123,237 1,85,294 2,79,797 2,767,523 Median Price PSF $. 28 29 21 211 212 213 214 215 216 217 LA County $119.13 $93.17 $72.12 $97.74 $96.81 $11.18 $114.27 $131.77 $151.36 $157.36 Orange County $157.9 $124.68 $12.72 $12.64 $11.4 $18.89 $129.56 $152.2 $163.78 $169.95 Inland Empire $83.14 $54.88 $53.35 $62.4 $66.74 $7.91 $73.69 $9.36 $13.75 $116. Ventura County $132.16 $13.65 $92.43 $11.31 $68.76 $84.3 $93.17 $15.72 $1.23 $17.39 % Change Median Price PSF $225. $2. $175. $15. $125. 3.% 2.% 1.%.% $1. $75. $5. $25. $. 28 29 21 211 212 213 214 215 216 217 LA County $14.98 $115.93 $13.97 $17.96 $18.36 $114.1 $127.19 $142. $158.46 $177.59 Orange County $19.78 $15. $126.25 $125.4 $126.6 $136.89 $145. $169. $179.67 $23.87 Inland Empire $123.55 $86.85 $75.66 $7.64 $72.62 $76.33 $88.42 $1. $118.1 $125.38 Ventura County $151.19 $159.57 $114.43 $14.9 $99.77 $97.1 $113.66 $124.7 $122.33 $14.46-1.% -2.% -3.% -4.% 29 21 211 212 213 214 215 216 217 LA County -17.8% -1.3% 3.8%.4% 5.3% 11.5% 11.6% 11.6% 12.1% Orange County -21.4% -15.8% -1.%.8% 8.6% 5.9% 16.6% 6.3% 13.5% Inland Empire -29.7% -12.9% -6.6% 2.8% 5.1% 15.8% 13.1% 18.% 6.2% Ventura County 5.5% -28.3% -9.% -4.2% -2.7% 17.1% 9.7% -1.9% 14.8%

ORANGE COUNTY INDUSTRIAL FOURTH QUARTER 217 PORTS OF LONG BEACH & LOS ANGELES HISTORICAL CONTAINER STATS & TRENDS Quarter & Year Loaded Inbound (Imports) Loaded Outbound (Exports) Total Loaded Empties Total Containers % Change (Prior Qtr.) % Change (Prior Yr.) % Change (Prior 2 Yrs.) 4Q 217 2,236,512 864,951 3,11,463 1,329,531 4,43,994-2.% 6.7% 14.3% 3Q 217 2,339,73 811,292 3,15,365 1,372,386 4,522,752 1.1% 11.4% 6.% 2Q 217 2,117,463 826,178 2,943,641 1,163,392 4,17,33 7.3% 7.4% 5.% 1Q 217 1,886,23 868,29 2,754,259 1,72,668 3,826,927-7.9% 6.5% 1.1% 4Q 216 2,87,498 879,267 2,966,765 1,186,955 4,153,72 2.3% 7.1% 12.4% 3Q 216 2,99,2 853,33 2,952,233 1,17,223 4,59,456 6.1% -4.8% 7.6% 2Q 216 2,96,446 856,215 2,818,94 1,7,246 3,825,34 6.5% -2.2% 3.4% 1Q 216 2,94,859 845,44 2,598,231 995,27 3,593,438-7.3% 3.4% -.1% 4Q 215 1,991,444 826,65 2,736,45 1,14,516 3,876,965-9.1% 4.9% 1.4% 3Q 215 1,817,161 844,562 2,661,724 1,284,213 4,265,623 9.% 13.% 7.1% 2Q 215 1,754,371 812,98 2,567,351 1,82,394 3,913,298 12.6% 5.8% 2.1% 1Q 215 1,89,18 789,51 2,598,231 878,445 3,476,676-5.9% -3.4% -3.3% 4Q 214 1,931,724 759,835 2,691,559 1,4,845 3,696,44-2.% -3.4%.3% 3Q 214 1,928,187 757,74 2,685,261 1,88,28 3,773,541 2.% -5.2% -2.8% 2Q 214 1,949,84 787,366 2,736,45 963,69 3,7,59 2.8% -3.4% 5.1% 1Q 214 2,37,574 779,934 2,817,58 78,456 3,597,965-5.9%.1% 15.5% 4Q 213 2,138,563 795,898 2,934,461 89,168 3,824,629-3.9% 3.8% 22.6% 3Q 213 2,168,57 812,93 2,981,41 1,,38 3,981,718 3.9% 2.6% 16.% 2Q 213 2,128,54 834,75 2,963,254 868,882 3,832,136 6.6% 8.9% 6.5% 1Q 213 2,38,181 84,821 2,879,3 716,573 3,595,576-2.4% 15.5%.2% Ports of Long Beach & Los Angeles Historical Container Stats Container Trade in TEUs* 5,, 4,5, 4,, 3,5, 3,, 2,5, 2,, 1,5, 1,, 5, 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 29 29 29 29 21 21 21 21 211 211 211 211 212 212 212 212 213 2132 13213 214 214 214 214 215 215 215 215216 216 216 216217 217 217 217 Loaded Inbound (Imports) Loaded Outbound (Exports) Empties

ORANGE COUNTY INDUSTRIAL FOURTH QUARTER 217 MARKET REPORT OVERVIEW SOUTHERN CALIFORNIA MARKET MAP METHODOLOGY & TERMINOLOGY Methodology Industrial and flex (R & D) buildings that are 5, square feet and greater. Direct Vacant SF Space that is vacant and ready for occupancy by a user. The space is being offered for lease or sale directly from the landlord. Total Vacant W/ Sublet SF Space that is vacant and ready for occupancy by a user. The space is being offered for lease or sale by the landlord or for sublease by the current tenant. DAUM OFFICES LOS ANGELES, CALIFORNIA 81 S. Figueroa Street, Suite 6 Los Angeles, CA 917 213-626-911 LOS ANGELES NORTH, CALIFORNIA 2182 Burbank Boulevard, Suite 21 Woodland Hills, CA 91367 818-887-36 SANTA CLARITA VALLEY, CALIFORNIA 28494 Westinghouse Place, Suite 312 Valencia, CA 91355 661-75-2299 MID-COUNTIES, CALIFORNIA 1381 Cerritos Corporate Drive, Suite C Cerritos, CA 973 562-27-33 ORANGE COUNTY, CALIFORNIA 44 MacArthur Boulevard, Suite 95 Newport Beach, CA 9266 949-724-19 VENTURA & SANTA BARBARA, CALIFORNIA 751 Daily Drive, Suite 15 Camarillo, CA 931 85-987-8866 Direct Vacancy Rate Total vacant direct space (vacant space for lease or sale from the landlord or owner) divided by the total rentable square footage for existing buildings only. Vacancy W/ Sublet Rate Total vacant direct space and sublease space divided by the total rentable square footage for existing buildings only. Gross Absorption The total change in occupied space over a given period of time, counting space that is occupied but not space that is vacated by tenants. Gross absorption differs from leasing activity, which is the sum of all space leased over a certain period of time. SAN GABRIEL VALLEY, CALIFORNIA 13181 Crossroads Pkwy. N, Suite 1 City of Industry, CA 91746 562-695-7244 SOUTH BAY, CALIFORNIA 125 W. 19th Street, Suite 42 Gardena, CA 9248 31-538-67 INLAND EMPIRE, CALIFORNIA 3595 E. Inland Empire Boulevard, Bldg. 5 Ontario, CA 91764 99-98-1234 PHOENIX ARIZONA 172 E. Highland Avenue, Suite 12 Phoenix, AZ 8516 62-957-73 The information contained in this report has been obtained from sources deemed reliable and has incorporated fourth-party data which has not been independently verified by DAUM. While we do not doubt its accuracy, DAUM makes no guarantee or warranty as to its completeness or accuracy. Due to the dynamic (constantly changing) database which DAUM uses to compile and analyze markets contained in this report, previously published statistics may vary from the data published in this report. Statistics and data have been revised to reflect changes in the following categories: existing buildings being verified and added to the database, new or revised occupancy information gathered, new construction being added to the inventory, building demolitions and renovations, as well as other factors that would necessitate revisions to the data and the properties surveyed. This methodology allows us to present the most current and up-to-date information, trend analysis and comparative statistics for this report. Net Absorption The net change in occupied space over a given period of time, calculated by summing all the positive changes in occupancy (move ins) and subtracting all the negative changes in occupancy (move outs). Under Construction Planned buildings for which construction has started but have not yet been granted a Certificate of Occupancy. Planned buildings are not included. Completed in 217 New buildings with original construction completed in the year 217 and granted a Certificate of Occupancy. Renovated buildings are not included.

ORANGE COUNTY OFFICE FOURTH QUARTER 217 QUICK STATS Direct Vacancy 12.3% Overall Vacancy 13.2% Lease Rate FSG $2.65 Gross Absorption Under Construction MARKET TRENDS Current Quarter 2,564,946 SF 189,5 SF Change from Last Quarter Year Overall Vacancy Rental Rates Gross Absorption Under Construction OFFICE SUMMARY & OUTLOOK The Orange County office market witnessed overall vacancy rates increase from 12.8% to 13.2%, during the quarter. Average asking rents increased 6.%, year over year, moving from $2.5 FSG to $2.65 FSG. Gross absorption totaled 2.6 million square feet of activity during the quarter, while net absorption posted a loss of 118, square feet of occupied space, but gained more 2, square feet for the year. New construction activity decreased during the quarter with 189,5 square feet currently underway, as the market delivered 1.1 million square feet of new space for the year. Unemployment rates have declined from 3.5% to 2.8%, year over year, and is well below California (4.2%) and the U.S. at 3.9%. The market has remained fairly balanced over the past three years, with vacancy rates remaining relatively flat, rental rates growing at more normalized rates, and new supply and net absorption near equilibrium. Job creation will remain the key to increased office demand. In December, non-farm employment grew by 1.5%, year over year, adding 23,6 new jobs. The investment and sale market for office buildings in Orange County continues to see strong activity levels as the total dollar sales volume finished at $2.3 billion in 217, as average prices increased 3.6%, year over year. The capital markets remain active with plenty of liquidity, but we do expect to see further interest rate hikes in the coming year. We expect vacancy levels to trend lower in the coming quarters, with rents expected to increase 3% to 6% for most submarkets in the coming year. VACANCY & NET ABSORPTION ECONOMIC STATS 1,5, 18.% Current Month Previous Year 1,, 16.% Dec. 17 Dec. 16 5, 14.% Unemployment 2.8% 3.5% Rate (MSA) 12.% Change in # +6,7 +23,6 Of Jobs (MSA) % Change for +.4% +1.5% Jobs (MSA) (5,) (1,,) 1.% 8.% Net Absorption SF Overall Vacancy

ORANGE COUNTY OFFICE FOURTH QUARTER 217 VACANCY RENTAL RATES & TIME 17.% $2.9 16. 16.% 15.% 14.% 13.% 12.% 11.% $2.7 $2.5 $2.3 $2.1 $1.9 $1.7 14. 12. 1. 8. 6. 4. 2. 1.% $1.5. Direct Vacancy Overall vacancy rates (including sublease space) increased from the previous quarter, moving from 12.8% to 13.2%. Among the five submarkets within the Orange County office market, the West County submarket ended the quarter with the lowest total vacancy of 9.9%, followed by South County at 12.6%, the Airport Area at 13.5%, Central County at 13.9%, and the North County submarket finishing the quarter at 14.1%. Since the fourth quarter of 216, overall vacancy rates have increased from 12.3% to 13.2%, but still remains below its 5-year average of 13.8%. ABSORPTION Overall Vacancy Avg. Rent (FSG) Time to Lease (Months) Average asking rates increased 6.%, year over year, moving from $2.5 FSG to $2.65 FSG. Of the five submarkets within the Orange County market, the Airport submarket ended the quarter with the highest average asking rate of $3.3 FSG, followed by the South County ($2.85 FSG), West County ($2.23 FSG), North County ($2.18 FSG), and Central County at $2.7 FSG. Average asking rents increased 1.5% during the quarter, moving from $2.61 FSG to $2.65 FSG. The median time to lease increased from 8. months to 8.6 months during the quarter. CONSTRUCTION ACTIVITY 3,, 1,4, 2,5, 1,2, 2,, 1,, 1,5, 8, 1,, 6, 5, 4, 2, (5,) (1,,) Net Absorption SF Gross Absorption SF SF Newly Completed SF Under Construction Gross absorption totaled 2.6 million square feet during the quarter, up 3% compared to the previous quarter, and higher by 38% compared to a year ago. Net absorption finished the quarter in negative territory, losing 118, square feet of occupied space, but gained 28, square feet for the year. During 216, the market gained 956, square feet, after gaining 1.1 million square feet during 215, +1.35 million square feet in 214, and +1.5 million square feet in 213. The market has recorded positive net absorption in sixteen of the past twenty quarters, totaling 5.1 million square feet of occupied space gains. We expect to see continued growth and similar demand levels as we move into 218. Under construction activity decreased during the quarter, with 189,5 square feet currently underway, as the market delivered 1.1 million square feet of new space for the year. In 216, the market added 767, square feet of new space after delivering 4, square feet in 215 and 55, square feet during 214. The market did not see any new construction delivered in 212 or 213. During the past five years, new construction deliveries have averaged 475, square feet, annually. Construction levels should remain at lower levels in the coming quarters, as the market waits for further growth and expansion in the office sector.

ORANGE COUNTY OFFICE FOURTH QUARTER 217 MARKET SNAPSHOT Total Direct Direct Total Vacant Vacancy Inventory Vacant Vacancy Including Sublet with Sublet SUBMARKETS Square Footage Square Footage Rate Square Footage Rate Airport 36,448,596 4,432,671 12.2% 4,917,29 13.5% Central County 17,465,83 2,37,953 13.6% 2,419,788 13.9% North County 8,496,154 1,18,2 13.9% 1,199,266 14.1% South County 18,611,418 2,193,69 11.8% 2,337,614 12.6% West County 5,916,72 557,43 9.4% 583,846 9.9% Orange County Totals 86,938,691 1,733,936 12.3% 11,457,84 13.2% North County 1% Office Market Inventory South County 21% West County 7% Central County 2% Airport 42% 16.% 14.% 12.% 1.% 8.% 6.% 4.% 2.% Office Vacancy Rates.% Airport Central County North County South County West County Direct Vacancy Vacancy with Sublet Average Low-High Square Feet Square Feet Gross Absorption Asking Rent Asking Rent Built in Under Square Feet SUBMARKETS FSG Range FSG 217 Construction Current Quarter Airport $3.3 $1.45-$4.9 1,143,97 Central County $2.7 $1.-$2.9 567,53 North County $2.18 $1.15-$4.25 268,64 South County $2.85 $1.4-$5.5 1,64,928 189,5 452,78 West County $2.23 $1.3-$3.25 132,224 Orange County Totals $2.65 $1.-$5.5 1,64,928 189,5 2,564,946 Office Rental Rates New Construction Activity $3.5 1,, $3. $2.5 9, 8, 7, $2. $1.5 6, 5, 4, $1. 3, $.5 $. Airport Central County North County South County West County Orange County Totals 2, 1, Airport Central County North County South County West County Orange County Totals Average Asking Rent FSG Square Feet Built in 217 Square Feet Under Construction

ORANGE COUNTY OFFICE FOURTH QUARTER 217 SOUTHERN CALIFORNIA OFFICE BUILDING SALE TREND ANALYSIS TOTAL SALES TRANSACTIONS Market 28 29 21 211 212 213 214 215 216 217 LA County 517 347 355 552 75 769 891 1,54 99 1,156 Orange County 247 13 151 25 294 347 334 425 392 41 Inland Empire 284 168 156 249 266 328 372 432 41 58 Ventura County 51 24 29 54 59 58 17 86 11 19 Totals 1,99 642 691 1,6 1,369 1,52 1,74 1,997 1,893 2,183 TOTAL TRANSACTION DOLLAR VALUE (MILLIONS) Bldg. SF 28 29 21 211 212 213 214 215 216 217 LA County $2,664.2 $753.7 $1,159.9 $2,72. $3,239.6 $5,953.1 $7,355.7 $4,843.9 $9,623.6 $8,57.2 Orange County $725.3 $364.9 $521.9 $625.9 $783.3 $1,385.1 $1,596.8 $2,797.9 $2,55.6 $2,273.2 Inland Empire $359.1 $85.7 $96. $13.2 $166.4 $237.5 $332.5 $642.6 $46.9 $554.2 Ventura County $93.9 $29.6 $81.3 $56.4 $43.2 $57.1 $246.9 $164.5 $169.4 $138.1 Totals $3,842.5 $1,233.9 $1,859.2 $2,884.6 $4,232.5 $7,632.8 $9,531.9 $8,448.9 $12,759.6 $11,22.6 TOTAL SQUARE FEET SOLD Bldg. SF 28 29 21 211 212 213 214 215 216 217 LA County 11,854,67 5,541,317 6,23,886 9,775,98 15,126,197 23,598,267 23,584,264 17,56,65 25,141,916 26,94,94 Orange County 3,283,136 2,23,473 3,59,352 3,865,353 6,76,432 7,31,297 8,173,268 12,235,143 11,838,955 9,14,83 Inland Empire 2,124,94 957,23 1,94,462 1,732,294 2,329,749 2,463,683 2,876,7 5,361,356 3,443,681 5,215,681 Ventura County 476,21 141,646 37,79 397,973 517,872 679,369 1,547,138 1,66,791 1,183,29 1,157,854 Totals 17,738,767 8,663,459 11,141,779 15,77,718 24,5,25 34,42,616 36,181,37 36,169,355 41,67,842 41,573,242 AVERAGE PRICE / SF Bldg. SF 28 29 21 211 212 213 214 215 216 217 LA County $273.87 $228.75 $235.36 $254.4 $264.17 $281.38 $344.77 $36.39 $429.23 $369.62 Orange County $293.51 $195.38 $182.39 $192.7 $211.65 $28.38 $27.78 $259.77 $264.8 $273.65 Inland Empire $212.76 $181.29 $13.41 $122.44 $135.29 $13.33 $144.25 $141.73 $17.69 $161.21 Ventura County $27.86 $248.34 $328.13 $182.62 $13.87 $14.6 $29.4 $189.67 $182.13 $189.78 Averages $268.41 $216.4 $21.92 $222.97 $235.55 $251.27 $292.9 $262.77 $353.81 $317.45 MEDIAN PRICE / SQUARE FOOT Bldg. SF 28 29 21 211 212 213 214 215 216 217 LA County $287.16 $26.95 $211.87 $24.94 $243.91 $233.31 $266.2 $283.91 $298.2 $293.7 Orange County $314.94 $224.41 $192.32 $216.15 $19. $24.49 $223.61 $246.57 $28.19 $259.2 Inland Empire $245.57 $187.29 $165.49 $135.16 $119.28 $125.7 $135.5 $132.88 $16.5 $169.4 Ventura County $253.62 $297.9 $22.17 $215.19 $183.47 $175.15 $18.41 $213.19 $19.56 $29.7 Median Average $286.42 $244.87 $2.89 $2.28 $216.91 $218.13 $242.37 $246.81 $278.51 $268.17 MEDIAN $ PSF INCREASE Bldg. SF 29 21 211 212 213 214 215 216 217 LA County -9.1% -18.8% -3.3% 19.% -4.3% 14.% 6.7% 5.% -1.4% Orange County -28.7% -14.3% 12.4% -12.1% 7.6% 9.4% 1.3% 13.6% -7.6% Inland Empire -23.7% -11.6% -18.3% -11.7% 4.9% 8.% -1.6% 2.8% 5.5% Ventura County 17.1% -31.9% 6.4% -14.7% -4.5% 3.% 18.2% -1.6% 1.% Totals -14.5% -18.% -.3% 8.3%.6% 11.1% 1.8% 12.8% -3.7% The following information has been obtained from sources deemed reliable. While we do not doubt its accuracy, we make no warranty or representation about it. This report contains verified arms-length transactions, but excludes all portfolio sales.

Median Price PSF Annual Increase Square Footage Sold Average Price PSF Number of Transactions Transaction $ Volume (Millions) ORANGE COUNTY OFFICE FOURTH QUARTER 217 SOUTHERN CALIFORNIA OFFICE BUILDING SALE TREND ANALYSIS Number of Transactions Transaction Volume $ 1,4 $12,. 1,2 $1,. 1, 8 6 $8,. $6,. 4 $4,. 2 $2,. 28 29 21 211 212 213 214 215 216 217 LA County 517 347 355 552 75 769 891 1,54 99 1,156 Orange County 247 13 151 25 294 347 334 425 392 41 Inland Empire 284 168 156 249 266 328 372 432 41 58 Ventura County 51 24 29 54 59 58 17 86 11 19 $. 28 29 21 211 212 213 214 215 216 217 LA County $2,664.2 $753.7 $1,159.9 $2,72. $3,239.6 $5,953.1 $7,355.7 $4,843.9 $9,623.6 $8,57.2 Orange County $725.3 $364.9 $521.9 $625.9 $783.3 $1,385.1 $1,596.8 $2,797.9 $2,55.6 $2,273.2 Inland Empire $359.1 $85.7 $96. $13.2 $166.4 $237.5 $332.5 $642.6 $46.9 $554.2 Ventura County $93.9 $29.6 $81.3 $56.4 $43.2 $57.1 $246.9 $164.5 $169.4 $138.1 Square Footage Sold Average Price PSF 3,, $5. $45. 25,, 2,, 15,, $4. $35. $3. $25. 1,, $2. $15. 5,, $1. $5. 28 29 21 211 212 213 214 215 216 217 11,854,67 5,541,317 6,23,886 9,775,98 15,126,197 23,598,267 23,584,264 17,56,65 25,141,916 26,94,94 LA County Orange County 3,283,136 2,23,473 3,59,352 3,865,353 6,76,432 7,31,297 8,173,268 12,235,143 11,838,955 9,14,83 Inland Empire 2,124,94 957,23 1,94,462 1,732,294 2,329,749 2,463,683 2,876,7 5,361,356 3,443,681 5,215,681 Ventura County 476,21 141,646 37,79 397,973 517,872 679,369 1,547,138 1,66,791 1,183,29 1,157,854 Median Price PSF $. 28 29 21 211 212 213 214 215 216 217 LA County $273.87 $228.75 $235.36 $254.4 $264.17 $281.38 $344.77 $36.39 $429.23 $369.62 Orange County $293.51 $195.38 $182.39 $192.7 $211.65 $28.38 $27.78 $259.77 $264.8 $273.65 Inland Empire $212.76 $181.29 $13.41 $122.44 $135.29 $13.33 $144.25 $141.73 $17.69 $161.21 Ventura County $27.86 $248.34 $328.13 $182.62 $13.87 $14.6 $29.4 $189.67 $182.13 $189.78 % Change Median Price PSF $35. $325. $3. $275. $25. $225. $2. $175. $15. $125. $1. $75. $5. $25. $. 28 29 21 211 212 213 214 215 216 217 LA County $287.16 $26.95 $211.87 $24.94 $243.91 $233.31 $266.2 $283.91 $298.2 $293.7 Orange County $314.94 $224.41 $192.32 $216.15 $19. $24.49 $223.61 $246.57 $28.19 $259.2 Inland Empire $245.57 $187.29 $165.49 $135.16 $119.28 $125.7 $135.5 $132.88 $16.5 $169.4 Ventura County $253.62 $297.9 $22.17 $215.19 $183.47 $175.15 $18.41 $213.19 $19.56 $29.7 3.% 2.% 1.%.% -1.% -2.% -3.% -4.% 29 21 211 212 213 214 215 216 217 LA County -9.1% -18.8% -3.3% 19.% -4.3% 14.% 6.7% 5.% -1.4% Orange County -28.7% -14.3% 12.4% -12.1% 7.6% 9.4% 1.3% 13.6% -7.6% Inland Empire -23.7% -11.6% -18.3% -11.7% 4.9% 8.% -1.6% 2.8% 5.5% Ventura County 17.1% -31.9% 6.4% -14.7% -4.5% 3.% 18.2% -1.6% 1.%

ORANGE COUNTY OFFICE FOURTH QUARTER 217 MARKET REPORT OVERVIEW SOUTHERN CALIFORNIA MARKET MAP METHODOLOGY & TERMINOLOGY Methodology Non-owner occupied, multi-tenant, office buildings that are 3, square feet and greater. Direct Vacant SF Space that is vacant and ready for occupancy by a user. The space is being offered for lease or sale directly from the landlord. Total Vacant W/ Sublet SF Space that is vacant and ready for occupancy by a user. The space is being offered for lease or sale by the landlord or for sublease by the current tenant. DAUM OFFICES LOS ANGELES, CALIFORNIA 81 S. Figueroa Street, Suite 6 Los Angeles, CA 917 213-626-911 LOS ANGELES NORTH, CALIFORNIA 2182 Burbank Boulevard, Suite 21 Woodland Hills, CA 91367 818-887-36 SANTA CLARITA VALLEY, CALIFORNIA 28494 Westinghouse Place, Suite 312 Valencia, CA 91355 661-75-2299 MID-COUNTIES, CALIFORNIA 1381 Cerritos Corporate Drive, Suite C Cerritos, CA 973 562-27-33 ORANGE COUNTY, CALIFORNIA 44 MacArthur Boulevard, Suite 95 Newport Beach, CA 9266 949-724-19 VENTURA & SANTA BARBARA, CALIFORNIA 751 Daily Drive, Suite 15 Camarillo, CA 931 85-987-8866 Direct Vacancy Rate Total vacant direct space (vacant space for lease or sale from the landlord or owner) divided by the total rentable square footage for existing buildings only. Vacancy W/ Sublet Rate Total vacant direct space and sublease space divided by the total rentable square footage for existing buildings only. Gross Absorption The total change in occupied space over a given period of time, counting space that is occupied but not space that is vacated by tenants. Gross absorption differs from leasing activity, which is the sum of all space leased over a certain period of time. SAN GABRIEL VALLEY, CALIFORNIA 13181 Crossroads Pkwy. N, Suite 1 City of Industry, CA 91746 562-695-7244 SOUTH BAY, CALIFORNIA 125 W. 19th Street, Suite 42 Gardena, CA 9248 31-538-67 INLAND EMPIRE, CALIFORNIA 3595 E. Inland Empire Boulevard, Bldg. 5 Ontario, CA 91764 99-98-1234 PHOENIX ARIZONA 172 E. Highland Avenue, Suite 12 Phoenix, AZ 8516 62-957-73 The information contained in this report has been obtained from sources deemed reliable and has incorporated fourth-party data which has not been independently verified by DAUM. While we do not doubt its accuracy, DAUM makes no guarantee or warranty as to its completeness or accuracy. Due to the dynamic (constantly changing) database which DAUM uses to compile and analyze markets contained in this report, previously published statistics may vary from the data published in this report. Statistics and data have been revised to reflect changes in the following categories: existing buildings being verified and added to the database, new or revised occupancy information gathered, new construction being added to the inventory, building demolitions and renovations, as well as other factors that would necessitate revisions to the data and the properties surveyed. This methodology allows us to present the most current and up-to-date information, trend analysis and comparative statistics for this report. Net Absorption The net change in occupied space over a given period of time, calculated by summing all the positive changes in occupancy (move ins) and subtracting all the negative changes in occupancy (move outs). Under Construction Planned buildings for which construction has started but have not yet been granted a Certificate of Occupancy. Planned buildings are not included. Completed in 217 New buildings with original construction completed in the year 217 and granted a Certificate of Occupancy. Renovated buildings are not included.

Section III VENTURA COUNTY

VENTURA COUNTY INDUSTRIAL FOURTH QUARTER 217 QUICK STATS Direct Vacancy 2.1% Overall Vacancy 2.4% Lease Rate NNN $.7 Gross Absorption Under Construction MARKET TRENDS Current Quarter 1,332,957 SF 774,362 SF Change from Last Quarter Year Overall Vacancy Rental Rates Gross Absorption Under Construction INDUSTRIAL SUMMARY & OUTLOOK The Ventura County industrial market witnessed vacancy rates decrease from 3.1% to 2.4%, during the quarter. Average asking rents increased 2.9%, year over year, moving from $.68nnn to $.7nnn. Gross absorption finished the quarter with 1.3 million square feet of activity, while net absorption finished with a gain of 555, square feet of occupied space. Under construction activity moved lower during the quarter with 774, square feet currently underway, as the market delivered 152, square feet of new space for the year. Unemployment rates have declined from 4.8% to 3.8%, year over year, and is below California (4.2%) and the U.S. at 3.9%. Demand for industrial space will continue to be driven by domestic and global consumption levels. In 217, the Los Angeles and Long Beach Port container traffic recorded its highest container total ever with 16.89 million TEU s, up 8% from 216 totals and 7% higher than its second highest year during 26. The investment and sale market for industrial real estate in Ventura County remains very strong, as median prices increased 14.8% year over year, and the total transaction volume recorded its second highest total. The capital markets remain active with plenty of liquidity, but we do expect to see further interest rate hikes in the coming year. The overall industrial market remains a landlord controlled market, and we expect vacancy to remain in the 3% to 5% range with a decent amount of new construction coming online, and we expect rents to rise another 3% to 4% in the coming year. VACANCY & NET ABSORPTION ECONOMIC STATS Current Month Previous Year Dec. 17 Dec. 16 Unemployment 3.8% 4.8% Rate (MSA) Change in # -1 +5,7 Of Jobs (MSA) % Change for -.% +1.9% Jobs (MSA) 8, 7, 6, 5, 4, 3, 2, 1, (1,) (2,) (3,) Net Absorption SF Overall Vacancy 9.% 8.% 7.% 6.% 5.% 4.% 3.% 2.% 1.%.%

VENTURA COUNTY INDUSTRIAL FOURTH QUARTER 217 VACANCY RENTAL RATES & TIME ON THE MARKET 9.% 8.% 7.% 6.% 5.% 4.% 3.% 2.% 1.%.% $.72 $.7 $.68 $.66 $.64 $.62 $.6 $.58 1. 9. 8. 7. 6. 5. 4. 3. 2. 1.. Direct Vacancy Overall Vacancy Overall vacancy rates (including sublease space) decreased from 3.1% to 2.4%, during the quarter. Of the six (6) submarkets within the Ventura County market, the Conejo Valley submarket ended the quarter with the lowest total vacancy of 1.2%, followed by Moorpark/Simi Valley at 1.6%, Oxnard/ Port Hueneme at 1.7%, North Ventura County at 2.7%, Ventura at 3.5%, and Camarillo finishing the quarter at 4.2%. Since the fourth quarter of 216, overall vacancy rates have decreased from 3.7% to 2.4%, and remains at its lowest level in more than a decade. Avg. Rent (NNN) Time on Market (Months) Standard industrial rental rates increased 3.%, year over year, moving from $.68nnn to $.7nnn. Of the six (6) submarkets within the Ventura County market, the Conejo Valley submarket ended the quarter with the highest standard industrial rental rate of $1.1nnn, followed by Moorpark/Simi Valley at $.92nnn, Ventura at $.72nnn, Camarillo at $.63nnn, with Oxnard/Port Hueneme at $.61nnn, with the North Ventura County submarket finishing the quarter at $.6nnn. Average industrial asking rents increased 1.5% from the previous quarter, moving from $.69nnn to $.7nnn. ABSORPTION CONSTRUCTION ACTIVITY 1,6, 1,4, 1,2, 1,, 8, 6, 4, 2, (2,) 1,, 9, 8, 7, 6, 5, 4, 3, 2, 1, (4,) Net Absorption SF Gross Absorption SF During the quarter, gross absorption totaled 1.3 million square feet, up 17% compared to the previous quarter, and higher by 14% compared to a year ago. Net absorption finished the quarter with a gain of 555, square feet and gained more than 1. million square feet for the year. During 216, the market gained 298, square feet, after gaining 1.6 million square feet in 214, +1.1 million square feet during 214, and a gain of 38, square feet in 213. We expect overall activity levels to remain similar to 217, and will be reliant on the new space being delivered to continue to see further growth in the coming quarters as available space remains very tight. SF Newly Completed SF Under Construction During the quarter, under construction activity decreased with 774, square feet currently underway, as the market delivered 152, square feet of new space for the year. In 216, the market added 64, square feet, after delivering 93, square feet in 215. The market did not deliver any new space in 213 or 214. During the past five years, the market has averaged approximately 62, square feet of new deliveries, annually. New construction levels are expected to decline in the coming quarters, as the limited amount of available land for industrial development remains scarce throughout the county.

VENTURA COUNTY INDUSTRIAL FOURTH QUARTER 217 MARKET SNAPSHOT Total Direct Direct Total Vacant Vacancy Inventory Vacant Vacancy w/ Sublet with Sublet SUBMARKETS Square Footage Square Footage Rate Square Footage Rate Camarillo 11,419,415 474,644 4.2% 478,286 4.2% Conejo Valley- VC Only 7,889,13 71,281.9% 92,664 1.2% North V.C. 2,623,551 71,884 2.7% 71,884 2.7% Oxnard / Port Hueneme 23,53,97 379,586 1.6% 4,218 1.7% Moorpark / Simi Valley 12,262,477 151,89 1.2% 193,826 1.6% Ventura 11,22,983 314,944 2.9% 387,195 3.5% Ventura County Totals 68,747,536 1,463,428 2.1% 1,624,73 2.4% Industrial Market Inventory Industrial Vacancy Rates Moorpark / Simi Valley 18% Ventura 16% Camarillo 17% Conejo Valley 12% Oxnard / Port Hueneme 34% North V.C. 4% 4.5% 4.% 3.5% 3.% 2.5% 2.% 1.5% 1.%.5%.% Camarillo Conejo Valley- VC Only North V.C. Oxnard / Port Hueneme Moorpark / Simi Valley Ventura Direct Vacancy Vacancy with Sublet Average Average Square Feet Square Feet Gross Absorption Industrial R&D / Flex Built in Under Square Feet SUBMARKETS Rent Rent 217 Construction Current Quarter Camarillo $.63 $.85 82,364 22,163 Conejo Valley- VC Only $1.1 $1.27 579,878 6,665 North V.C. $.6 NA 17,53 Oxnard / Port Hueneme $.61 $.8 453,666 Moorpark / Simi Valley $.92 $.95 151,991 68,484 488,597 Ventura $.72 $.84 43,636 92,363 Ventura County Totals $.7 $.82 151,991 774,362 1,332,957 $1.4 $1.2 $1. $.8 $.6 $.4 $.2 $. Camarillo Industrial Rental Rates Conejo Valley- VC Only North V.C. Oxnard / Port Hueneme Moorpark / Simi Valley Ventura Ventura County Totals 1,, 9, 8, 7, 6, 5, 4, 3, 2, 1, New Construction Activity Camarillo Conejo Valley- VC Only North V.C. Oxnard / Port Hueneme Moorpark / Simi Valley Ventura Ventura County Totals Average Industrial Rent Square Feet Built in 217 Square Feet Under Construction

VENTURA COUNTY INDUSTRIAL FOURTH QUARTER 217 SOUTHERN CALIFORNIA INDUSTRIAL SALES TREND ANALYSIS TOTAL SALES TRANSACTIONS Market 28 29 21 211 212 213 214 215 216 217 LA County 99 523 79 1,43 1,442 1,195 1,346 1,59 1,49 1,723 Orange County 216 163 21 278 445 399 35 435 47 51 Inland Empire 389 293 288 383 56 57 594 679 646 848 Ventura County 65 59 53 83 92 1 19 111 137 131 Totals 1,579 1,38 1,26 1,787 2,539 2,264 2,399 2,815 2,662 3,23 TOTAL TRANSACTION DOLLAR VALUE (MILLIONS) Bldg. SF 28 29 21 211 212 213 214 215 216 217 LA County $2,9.7 $855. $1,238.9 $1,564.7 $2,145.2 $2,31.2 $2,297.7 $3,255.2 $2,947.6 $3,46.7 Orange County $525.4 $268.7 $425.3 $622.4 $646.1 $856.6 $96.6 $97.3 $1,269.3 $1,137.4 Inland Empire $1,315.6 $61.1 $879.4 $1,2.2 $94.1 $1,289.8 $1,488.8 $1,571. $1,396.4 $1,944. Ventura County $19. $41.7 $13.4 $16. $191.3 $117.5 $217.8 $152.9 $198.4 $221.2 Totals $4,4.7 $1,775.5 $2,647. $3,295.3 $3,886.7 $4,295.1 $4,965. $5,886.3 $5,811.7 $6,79.3 TOTAL SQUARE FEET SOLD Bldg. SF 28 29 21 211 212 213 214 215 216 217 LA County 21,54,775 12,72,239 22,111,368 21,441,991 32,187,47 23,536,52 23,69,595 32,79,793 23,877,886 29,429,84 Orange County 3,876,845 3,227,465 4,642,255 6,932,955 9,112,749 9,451,638 9,421,962 8,91,899 8,791,77 8,915,84 Inland Empire 2,3,636 12,127,851 19,912,668 18,246,26 18,677,764 23,322,756 22,993,923 21,78,64 15,61,71 2,829,822 Ventura County 1,334,814 446,275 1,217,138 1,386,321 3,496,396 1,669,355 3,123,237 1,85,294 2,79,797 2,767,523 Totals 46,27,7 28,53,83 47,883,429 48,7,293 63,474,379 57,98,269 59,229,717 64,612,626 5,981,1 61,942,953 AVERAGE PRICE / SF Bldg. SF 28 29 21 211 212 213 214 215 216 217 LA County $119.13 $93.17 $72.12 $97.74 $96.81 $11.18 $114.27 $131.77 $151.36 $157.36 Orange County $157.9 $124.68 $12.72 $12.64 $11.4 $18.89 $129.56 $152.2 $163.78 $169.95 Inland Empire $83.14 $54.88 $53.35 $62.4 $66.74 $7.91 $73.69 $9.36 $13.75 $116. Ventura County $132.16 $13.65 $92.43 $11.31 $68.76 $84.3 $93.17 $15.72 $1.23 $17.39 Averages $17.2 $81.4 $67.79 $85.12 $88.31 $89.78 $99.83 $119.88 $136.21 $143.3 MEDIAN PRICE / SQUARE FOOT Bldg. SF 28 29 21 211 212 213 214 215 216 217 LA County $14.98 $115.93 $13.97 $17.96 $18.36 $114.1 $127.19 $142. $158.46 $177.59 Orange County $19.78 $15. $126.25 $125.4 $126.6 $136.89 $145. $169. $179.67 $23.87 Inland Empire $123.55 $86.85 $75.66 $7.64 $72.62 $76.33 $88.42 $1. $118.1 $125.38 Ventura County $151.19 $159.57 $114.43 $14.9 $99.77 $97.1 $113.66 $124.7 $122.33 $14.46 Median Average $137.91 $18.1 $94.62 $96.13 $99.91 $12.13 $114.26 $131.7 $147.82 $162.16 MEDIAN $ PSF INCREASE Bldg. SF 29 21 211 212 213 214 215 216 217 LA County -17.8% -1.3% 3.8%.4% 5.3% 11.5% 11.6% 11.6% 12.1% Orange County -21.4% -15.8% -1.%.8% 8.6% 5.9% 16.6% 6.3% 13.5% Inland Empire -29.7% -12.9% -6.6% 2.8% 5.1% 15.8% 13.1% 18.% 6.2% Ventura County 5.5% -28.3% -9.% -4.2% -2.7% 17.1% 9.7% -1.9% 14.8% Totals -21.6% -12.5% 1.6% 3.9% 2.2% 11.9% 14.7% 12.8% 9.7% The following information has been obtained from sources deemed reliable. While we do not doubt its accuracy, we make no warranty or representation about it. This report contains verified arms-length transactions, but excludes all portfolio sales.

Median Price PSF Annual Increase Square Footage Sold Average Price PSF Number of Transactions Transaction $ Volume (Millions) VENTURA COUNTY INDUSTRIAL FOURTH QUARTER 217 SOUTHERN CALIFORNIA INDUSTRIAL SALES TREND ANALYSIS Number of Transactions Transaction Volume $ 2, 1,8 1,6 1,4 1,2 1, 8 6 4 2 $4,. $3,5. $3,. $2,5. $2,. $1,5. $1,. $5. 28 29 21 211 212 213 214 215 216 217 LA County 99 523 79 1,43 1,442 1,195 1,346 1,59 1,49 1,723 Orange County 216 163 21 278 445 399 35 435 47 51 Inland Empire 389 293 288 383 56 57 594 679 646 848 Ventura County 65 59 53 83 92 1 19 111 137 131 35,, 3,, Square Footage Sold $. 28 29 21 211 212 213 214 215 216 217 LA County $2,9.7 $855. $1,238.9 $1,564.7 $2,145.2 $2,31.2 $2,297.7 $3,255.2 $2,947.6 $3,46.7 Orange County $525.4 $268.7 $425.3 $622.4 $646.1 $856.6 $96.6 $97.3 $1,269.3 $1,137.4 Inland Empire $1,315.6 $61.1 $879.4 $1,2.2 $94.1 $1,289.8 $1,488.8 $1,571. $1,396.4 $1,944. Ventura County $19. $41.7 $13.4 $16. $191.3 $117.5 $217.8 $152.9 $198.4 $221.2 $18. $16. Average Price PSF 25,, 2,, $14. $12. $1. 15,, $8. 1,, 5,, $6. $4. $2. 28 29 21 211 212 213 214 215 216 217 21,54,775 12,72,239 22,111,368 21,441,991 32,187,47 23,536,52 23,69,595 32,79,793 23,877,886 29,429,84 LA County Orange County 3,876,845 3,227,465 4,642,255 6,932,955 9,112,749 9,451,638 9,421,962 8,91,899 8,791,77 8,915,84 Inland Empire 2,3,636 12,127,851 19,912,668 18,246,26 18,677,764 23,322,756 22,993,923 21,78,64 15,61,71 2,829,822 Ventura County 1,334,814 446,275 1,217,138 1,386,321 3,496,396 1,669,355 3,123,237 1,85,294 2,79,797 2,767,523 Median Price PSF $. 28 29 21 211 212 213 214 215 216 217 LA County $119.13 $93.17 $72.12 $97.74 $96.81 $11.18 $114.27 $131.77 $151.36 $157.36 Orange County $157.9 $124.68 $12.72 $12.64 $11.4 $18.89 $129.56 $152.2 $163.78 $169.95 Inland Empire $83.14 $54.88 $53.35 $62.4 $66.74 $7.91 $73.69 $9.36 $13.75 $116. Ventura County $132.16 $13.65 $92.43 $11.31 $68.76 $84.3 $93.17 $15.72 $1.23 $17.39 % Change Median Price PSF $225. $2. $175. $15. $125. 3.% 2.% 1.%.% $1. $75. $5. $25. $. 28 29 21 211 212 213 214 215 216 217 LA County $14.98 $115.93 $13.97 $17.96 $18.36 $114.1 $127.19 $142. $158.46 $177.59 Orange County $19.78 $15. $126.25 $125.4 $126.6 $136.89 $145. $169. $179.67 $23.87 Inland Empire $123.55 $86.85 $75.66 $7.64 $72.62 $76.33 $88.42 $1. $118.1 $125.38 Ventura County $151.19 $159.57 $114.43 $14.9 $99.77 $97.1 $113.66 $124.7 $122.33 $14.46-1.% -2.% -3.% -4.% 29 21 211 212 213 214 215 216 217 LA County -17.8% -1.3% 3.8%.4% 5.3% 11.5% 11.6% 11.6% 12.1% Orange County -21.4% -15.8% -1.%.8% 8.6% 5.9% 16.6% 6.3% 13.5% Inland Empire -29.7% -12.9% -6.6% 2.8% 5.1% 15.8% 13.1% 18.% 6.2% Ventura County 5.5% -28.3% -9.% -4.2% -2.7% 17.1% 9.7% -1.9% 14.8%

VENTURA COUNTY INDUSTRIAL FOURTH QUARTER 217 PORTS OF LONG BEACH & LOS ANGELES HISTORICAL CONTAINER STATS & TRENDS Quarter & Year Loaded Inbound (Imports) Loaded Outbound (Exports) Total Loaded Empties Total Containers % Change (Prior Qtr.) % Change (Prior Yr.) % Change (Prior 2 Yrs.) 4Q 217 2,236,512 864,951 3,11,463 1,329,531 4,43,994-2.% 6.7% 14.3% 3Q 217 2,339,73 811,292 3,15,365 1,372,386 4,522,752 1.1% 11.4% 6.% 2Q 217 2,117,463 826,178 2,943,641 1,163,392 4,17,33 7.3% 7.4% 5.% 1Q 217 1,886,23 868,29 2,754,259 1,72,668 3,826,927-7.9% 6.5% 1.1% 4Q 216 2,87,498 879,267 2,966,765 1,186,955 4,153,72 2.3% 7.1% 12.4% 3Q 216 2,99,2 853,33 2,952,233 1,17,223 4,59,456 6.1% -4.8% 7.6% 2Q 216 2,96,446 856,215 2,818,94 1,7,246 3,825,34 6.5% -2.2% 3.4% 1Q 216 2,94,859 845,44 2,598,231 995,27 3,593,438-7.3% 3.4% -.1% 4Q 215 1,991,444 826,65 2,736,45 1,14,516 3,876,965-9.1% 4.9% 1.4% 3Q 215 1,817,161 844,562 2,661,724 1,284,213 4,265,623 9.% 13.% 7.1% 2Q 215 1,754,371 812,98 2,567,351 1,82,394 3,913,298 12.6% 5.8% 2.1% 1Q 215 1,89,18 789,51 2,598,231 878,445 3,476,676-5.9% -3.4% -3.3% 4Q 214 1,931,724 759,835 2,691,559 1,4,845 3,696,44-2.% -3.4%.3% 3Q 214 1,928,187 757,74 2,685,261 1,88,28 3,773,541 2.% -5.2% -2.8% 2Q 214 1,949,84 787,366 2,736,45 963,69 3,7,59 2.8% -3.4% 5.1% 1Q 214 2,37,574 779,934 2,817,58 78,456 3,597,965-5.9%.1% 15.5% 4Q 213 2,138,563 795,898 2,934,461 89,168 3,824,629-3.9% 3.8% 22.6% 3Q 213 2,168,57 812,93 2,981,41 1,,38 3,981,718 3.9% 2.6% 16.% 2Q 213 2,128,54 834,75 2,963,254 868,882 3,832,136 6.6% 8.9% 6.5% 1Q 213 2,38,181 84,821 2,879,3 716,573 3,595,576-2.4% 15.5%.2% Ports of Long Beach & Los Angeles Historical Container Stats Container Trade in TEUs* 5,, 4,5, 4,, 3,5, 3,, 2,5, 2,, 1,5, 1,, 5, 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 29 29 29 29 21 21 21 21 211 211 211 211 212 212 212 212 213 2132 13213 214 214 214 214 215 215 215 215216 216 216 216217 217 217 217 Loaded Inbound (Imports) Loaded Outbound (Exports) Empties

VENTURA COUNTY INDUSTRIAL FOURTH QUARTER 217 MARKET REPORT OVERVIEW SOUTHERN CALIFORNIA MARKET MAP METHODOLOGY & TERMINOLOGY Methodology Industrial and flex (R & D) buildings that are 5, square feet and greater. Direct Vacant SF Space that is vacant and ready for occupancy by a user. The space is being offered for lease or sale directly from the landlord. Total Vacant W/ Sublet SF Space that is vacant and ready for occupancy by a user. The space is being offered for lease or sale by the landlord or for sublease by the current tenant. DAUM OFFICES LOS ANGELES, CALIFORNIA 81 S. Figueroa Street, Suite 6 Los Angeles, CA 917 213-626-911 LOS ANGELES NORTH, CALIFORNIA 2182 Burbank Boulevard, Suite 21 Woodland Hills, CA 91367 818-887-36 SANTA CLARITA VALLEY, CALIFORNIA 28494 Westinghouse Place, Suite 312 Valencia, CA 91355 661-75-2299 MID-COUNTIES, CALIFORNIA 1381 Cerritos Corporate Drive, Suite C Cerritos, CA 973 562-27-33 ORANGE COUNTY, CALIFORNIA 44 MacArthur Boulevard, Suite 95 Newport Beach, CA 9266 949-724-19 VENTURA & SANTA BARBARA, CALIFORNIA 751 Daily Drive, Suite 15 Camarillo, CA 931 85-987-8866 Direct Vacancy Rate Total vacant direct space (vacant space for lease or sale from the landlord or owner) divided by the total rentable square footage for existing buildings only. Vacancy W/ Sublet Rate Total vacant direct space and sublease space divided by the total rentable square footage for existing buildings only. Gross Absorption The total change in occupied space over a given period of time, counting space that is occupied but not space that is vacated by tenants. Gross absorption differs from leasing activity, which is the sum of all space leased over a certain period of time. SAN GABRIEL VALLEY, CALIFORNIA 13181 Crossroads Pkwy. N, Suite 1 City of Industry, CA 91746 562-695-7244 SOUTH BAY, CALIFORNIA 125 W. 19th Street, Suite 42 Gardena, CA 9248 31-538-67 INLAND EMPIRE, CALIFORNIA 3595 E. Inland Empire Boulevard, Bldg. 5 Ontario, CA 91764 99-98-1234 PHOENIX ARIZONA 172 E. Highland Avenue, Suite 12 Phoenix, AZ 8516 62-957-73 The information contained in this report has been obtained from sources deemed reliable and has incorporated fourth-party data which has not been independently verified by DAUM. While we do not doubt its accuracy, DAUM makes no guarantee or warranty as to its completeness or accuracy. Due to the dynamic (constantly changing) database which DAUM uses to compile and analyze markets contained in this report, previously published statistics may vary from the data published in this report. Statistics and data have been revised to reflect changes in the following categories: existing buildings being verified and added to the database, new or revised occupancy information gathered, new construction being added to the inventory, building demolitions and renovations, as well as other factors that would necessitate revisions to the data and the properties surveyed. This methodology allows us to present the most current and up-to-date information, trend analysis and comparative statistics for this report. Net Absorption The net change in occupied space over a given period of time, calculated by summing all the positive changes in occupancy (move ins) and subtracting all the negative changes in occupancy (move outs). Under Construction Planned buildings for which construction has started but have not yet been granted a Certificate of Occupancy. Planned buildings are not included. Completed in 217 New buildings with original construction completed in the year 217 and granted a Certificate of Occupancy. Renovated buildings are not included.

VENTURA COUNTY OFFICE FOURTH QUARTER 217 QUICK STATS Direct Vacancy 14.1% Overall Vacancy 14.7% Lease Rate FSG $2.25 Gross Absorption Under Construction MARKET TRENDS Current Quarter 358,44 SF 43,112 SF Change from Last Quarter Year Overall Vacancy Rental Rates Gross Absorption Under Construction OFFICE SUMMARY & OUTLOOK The Ventura County office market witnessed vacancy rates increase from 14.3% to 14.7%, during the quarter. Average asking rents increased 4.7%, year over year, moving from $2.15 FSG to $2.25 FSG. Gross absorption finished with 358, square feet of activity, while net absorption posted a loss of 46, square feet for the quarter. Under construction activity increased during the quarter, with 43,112 square feet currently underway, as the market did not deliver any new space in 217. Unemployment rates have declined from 4.8% to 3.8%, year over year, and is below California (4.2%) and the U.S. at 3.9%. The office market remains more balanced between landlord and tenant, with vacancy generally trending lower and rents rising at more normalized rates, with overall activity and demand remaining fairly steady. Job creation will remain the key to increased office demand. Non-farm employment grew by 1.9%, year over year, adding 5,7 new jobs. The investment and sale market for office buildings in Ventura County continues to see solid activity levels as the total square footage sold in 216 recorded its second highest total since 27, with 1.2 million square feet and finished just below that level in 217. The capital markets remain active with plenty of liquidity, but we do expect interest rates to rise in the coming year, which is expected to slow price growth a bit. We expect vacancy levels to trend slightly lower in the coming quarters, and expect rents to increase another 3% to 4% for most submarkets in the coming year. VACANCY & NET ABSORPTION ECONOMIC STATS Current Month Previous Year Dec. 17 Dec. 16 Unemployment 3.8% 4.8% Rate (MSA) Change in # -1 +5,7 Of Jobs (MSA) % Change for -.% +1.9% Jobs (MSA) 3, 25, 2, 15, 1, 5, (5,) (1,) (15,) (2,) (25,) Net Absorption SF Overall Vacancy 18.% 16.% 14.% 12.% 1.% 8.% 6.% 4.% 2.%.%

VENTURA COUNTY OFFICE FOURTH QUARTER 217 VACANCY RENTAL RATES & TIME ON THE MARKET 17.% $2.3 16. 16.% 15.% 14.% 13.% $2.2 $2.1 $2. $1.9 $1.8 14. 12. 1. 8. 6. 12.% $1.7 4. 11.% $1.6 2. 1.% $1.5. Direct Vacancy Overall Vacancy Avg. Rent (FSG) Time to Lease (Months) Overall vacancy rates (including sublease space) increased during the quarter, moving from 14.3% to 14.7%. Of the six submarkets within the Ventura County market, the Calabasas submarket ended the quarter with the lowest total vacancy of 8.9%, followed by Westlake Village at 12.%, the Greater Oxnard Plain at 13.9%, Thousand Oaks at 14.6%, Agoura Hills at 16.6%, and Simi Valley/ Moorpark finishing the quarter at 26.5%. Since the fourth quarter of 216, overall vacancy rates have increased from 13.5% to 14.7%, but still remains below its 5-year average of 14.9%. Average asking rates increased 4.7%, year over year, moving from $2.15 FSG to $2.25 FSG. Of the six submarkets within the Ventura County market, the Westlake Village submarket ended the quarter with the highest average asking rate of $2.7 FSG, followed by Calabasas at $2.5 FSG, Simi Valley/Moorpark at $2.25 FSG, Thousand Oaks at $2.22 FSG, Agoura Hills at $2.18 FSG, and the Greater Oxnard Plain finishing the quarter at $2. FSG. Average rents were unchanged during the quarter, remaining at $2.25 FSG. ABSORPTION CONSTRUCTION ACTIVITY 7, 6, 5, 4, 3, 2, 1, (1,) (2,) 18, 16, 14, 12, 1, 8, 6, 4, 2, (3,) Net Absorption SF Gross Absorption SF SF Newly Completed SF Under Construction During the quarter gross absorption totaled 358, square feet of activity, up 18% compared to the previous quarter, and higher by 5% compared to a year ago. Net absorption finished the quarter with a loss of 46, square feet and finished the year with a loss of 24, square feet. In 216, the market gained 63, square feet, after gaining 25, square feet in 215, +247, square feet in 214, and a gain of 26, square feet in 213. Overall activity and demand levels remain at lower levels heading into 218. We expect demand to begin pickup in the first half of the year and should see further occupancy growth. Under construction activity increased during the quarter with 43,112 square feet currently underway, as the market did not deliver any new space in 217. In 216, the market added 121, square feet of new space in 216, after delivering 13, square feet of new space in 215, 1, square feet during 214, and 18, square feet in 213. During the past five years, the market has averaged 5, square feet of new space deliveries, annually. We expect to see new development activity remain at lower levels heading into 218, as demand and rental rate growth has definitely slowed, coupled with limited available development sites.

VENTURA COUNTY OFFICE FOURTH QUARTER 217 MARKET SNAPSHOT Total Direct Direct Total Total Inventory Vacant Vacancy Vacant w/ Sublet Vacant w/ Sublet SUBMARKETS Square Footage Square Footage Rate Square Footage Rate *Agoura Hills 1,284,93 26,539 16.1% 213,87 16.6% *Calabasas 2,577,815 189,461 7.3% 23,544 8.9% Thousand Oaks 2,228,777 315,16 14.1% 326,13 14.6% *Westlake Village 4,611,36 488,691 1.6% 552,964 12.% Simi Valley / Moorpark 2,558,577 677,339 26.5% 677,339 26.5% Greater Oxnard Plain 7,284,667 1,12,64 13.9% 1,12,64 13.9% Ventura County Totals 2,544,965 2,889,254 14.1% 3,12,128 14.7% Office Market Inventory Office Vacancy Rates Greater Oxnard Plain 36% *Agoura Hills 6% *Calabasas 13% Thousand Oaks 11% 3.% 25.% 2.% 15.% 493741 Simi Valley / Moorpark 12% *Westlake Village 22% 1.% 5.%.% *Agoura Hills *Calabasas Thousand Oaks *Westlake Village Simi Valley / Moorpark Greater Oxnard Plain Vacancy- Direct Vacancy w/ Sublease Rate Average Low-High Square Feet Square Feet Gross Absorption Asking Rent Asking Rent Built in Under Square Feet SUBMARKETS FSG Range FSG 217 Construction Current Quarter *Agoura Hills $2.18 $1.-$2.8 18,112 21,37 *Calabasas $2.5 $1.8-$3.4 62,373 Thousand Oaks $2.22 $1.3-$3.25 25,853 *Westlake Village $2.7 $1.35-$3.75 129,599 Simi Valley / Moorpark $2.25 $1.3-$2.95 5,259 Greater Oxnard Plain $2. $1.-$3.15 25, 114,13 Ventura County Totals $2.25 $1.-$3.75 43,112 358,44 $3. $2.5 $2. $1.5 $1. $.5 $. *Agoura Hills *Calabasas Office Rental Rates Thousand Oaks *Westlake Village Simi Valley / Moorpark Greater Oxnard Plain Ventura County Totals 5, 45, 4, 35, 3, 25, 2, 15, 1, 5, *Agoura Hills New Construction Activity *Calabasas Thousand Oaks *Westlake Village Simi Valley / Moorpark Greater Oxnard Plain Ventura County Totals Average Asking Rent FSG Square Feet Built in 217 Square Feet Under Construction

VENTURA COUNTY OFFICE FOURTH QUARTER 217 SOUTHERN CALIFORNIA OFFICE BUILDING SALE TREND ANALYSIS TOTAL SALES TRANSACTIONS Market 28 29 21 211 212 213 214 215 216 217 LA County 517 347 355 552 75 769 891 1,54 99 1,156 Orange County 247 13 151 25 294 347 334 425 392 41 Inland Empire 284 168 156 249 266 328 372 432 41 58 Ventura County 51 24 29 54 59 58 17 86 11 19 Totals 1,99 642 691 1,6 1,369 1,52 1,74 1,997 1,893 2,183 TOTAL TRANSACTION DOLLAR VALUE (MILLIONS) Bldg. SF 28 29 21 211 212 213 214 215 216 217 LA County $2,664.2 $753.7 $1,159.9 $2,72. $3,239.6 $5,953.1 $7,355.7 $4,843.9 $9,623.6 $8,57.2 Orange County $725.3 $364.9 $521.9 $625.9 $783.3 $1,385.1 $1,596.8 $2,797.9 $2,55.6 $2,273.2 Inland Empire $359.1 $85.7 $96. $13.2 $166.4 $237.5 $332.5 $642.6 $46.9 $554.2 Ventura County $93.9 $29.6 $81.3 $56.4 $43.2 $57.1 $246.9 $164.5 $169.4 $138.1 Totals $3,842.5 $1,233.9 $1,859.2 $2,884.6 $4,232.5 $7,632.8 $9,531.9 $8,448.9 $12,759.6 $11,22.6 TOTAL SQUARE FEET SOLD Bldg. SF 28 29 21 211 212 213 214 215 216 217 LA County 11,854,67 5,541,317 6,23,886 9,775,98 15,126,197 23,598,267 23,584,264 17,56,65 25,141,916 26,94,94 Orange County 3,283,136 2,23,473 3,59,352 3,865,353 6,76,432 7,31,297 8,173,268 12,235,143 11,838,955 9,14,83 Inland Empire 2,124,94 957,23 1,94,462 1,732,294 2,329,749 2,463,683 2,876,7 5,361,356 3,443,681 5,215,681 Ventura County 476,21 141,646 37,79 397,973 517,872 679,369 1,547,138 1,66,791 1,183,29 1,157,854 Totals 17,738,767 8,663,459 11,141,779 15,77,718 24,5,25 34,42,616 36,181,37 36,169,355 41,67,842 41,573,242 AVERAGE PRICE / SF Bldg. SF 28 29 21 211 212 213 214 215 216 217 LA County $273.87 $228.75 $235.36 $254.4 $264.17 $281.38 $344.77 $36.39 $429.23 $369.62 Orange County $293.51 $195.38 $182.39 $192.7 $211.65 $28.38 $27.78 $259.77 $264.8 $273.65 Inland Empire $212.76 $181.29 $13.41 $122.44 $135.29 $13.33 $144.25 $141.73 $17.69 $161.21 Ventura County $27.86 $248.34 $328.13 $182.62 $13.87 $14.6 $29.4 $189.67 $182.13 $189.78 Averages $268.41 $216.4 $21.92 $222.97 $235.55 $251.27 $292.9 $262.77 $353.81 $317.45 MEDIAN PRICE / SQUARE FOOT Bldg. SF 28 29 21 211 212 213 214 215 216 217 LA County $287.16 $26.95 $211.87 $24.94 $243.91 $233.31 $266.2 $283.91 $298.2 $293.7 Orange County $314.94 $224.41 $192.32 $216.15 $19. $24.49 $223.61 $246.57 $28.19 $259.2 Inland Empire $245.57 $187.29 $165.49 $135.16 $119.28 $125.7 $135.5 $132.88 $16.5 $169.4 Ventura County $253.62 $297.9 $22.17 $215.19 $183.47 $175.15 $18.41 $213.19 $19.56 $29.7 Median Average $286.42 $244.87 $2.89 $2.28 $216.91 $218.13 $242.37 $246.81 $278.51 $268.17 MEDIAN $ PSF INCREASE Bldg. SF 29 21 211 212 213 214 215 216 217 LA County -9.1% -18.8% -3.3% 19.% -4.3% 14.% 6.7% 5.% -1.4% Orange County -28.7% -14.3% 12.4% -12.1% 7.6% 9.4% 1.3% 13.6% -7.6% Inland Empire -23.7% -11.6% -18.3% -11.7% 4.9% 8.% -1.6% 2.8% 5.5% Ventura County 17.1% -31.9% 6.4% -14.7% -4.5% 3.% 18.2% -1.6% 1.% Totals -14.5% -18.% -.3% 8.3%.6% 11.1% 1.8% 12.8% -3.7% The following information has been obtained from sources deemed reliable. While we do not doubt its accuracy, we make no warranty or representation about it. This report contains verified arms-length transactions, but excludes all portfolio sales.

Median Price PSF Annual Increase Square Footage Sold Average Price PSF Number of Transactions Transaction $ Volume (Millions) VENTURA COUNTY OFFICE FOURTH QUARTER 217 SOUTHERN CALIFORNIA OFFICE BUILDING SALE TREND ANALYSIS Number of Transactions Transaction Volume $ 1,4 $12,. 1,2 $1,. 1, 8 6 $8,. $6,. 4 $4,. 2 $2,. 28 29 21 211 212 213 214 215 216 217 LA County 517 347 355 552 75 769 891 1,54 99 1,156 Orange County 247 13 151 25 294 347 334 425 392 41 Inland Empire 284 168 156 249 266 328 372 432 41 58 Ventura County 51 24 29 54 59 58 17 86 11 19 $. 28 29 21 211 212 213 214 215 216 217 LA County $2,664.2 $753.7 $1,159.9 $2,72. $3,239.6 $5,953.1 $7,355.7 $4,843.9 $9,623.6 $8,57.2 Orange County $725.3 $364.9 $521.9 $625.9 $783.3 $1,385.1 $1,596.8 $2,797.9 $2,55.6 $2,273.2 Inland Empire $359.1 $85.7 $96. $13.2 $166.4 $237.5 $332.5 $642.6 $46.9 $554.2 Ventura County $93.9 $29.6 $81.3 $56.4 $43.2 $57.1 $246.9 $164.5 $169.4 $138.1 Square Footage Sold Average Price PSF 3,, $5. $45. 25,, 2,, 15,, $4. $35. $3. $25. 1,, $2. $15. 5,, $1. $5. 28 29 21 211 212 213 214 215 216 217 11,854,67 5,541,317 6,23,886 9,775,98 15,126,197 23,598,267 23,584,264 17,56,65 25,141,916 26,94,94 LA County Orange County 3,283,136 2,23,473 3,59,352 3,865,353 6,76,432 7,31,297 8,173,268 12,235,143 11,838,955 9,14,83 Inland Empire 2,124,94 957,23 1,94,462 1,732,294 2,329,749 2,463,683 2,876,7 5,361,356 3,443,681 5,215,681 Ventura County 476,21 141,646 37,79 397,973 517,872 679,369 1,547,138 1,66,791 1,183,29 1,157,854 Median Price PSF $. 28 29 21 211 212 213 214 215 216 217 LA County $273.87 $228.75 $235.36 $254.4 $264.17 $281.38 $344.77 $36.39 $429.23 $369.62 Orange County $293.51 $195.38 $182.39 $192.7 $211.65 $28.38 $27.78 $259.77 $264.8 $273.65 Inland Empire $212.76 $181.29 $13.41 $122.44 $135.29 $13.33 $144.25 $141.73 $17.69 $161.21 Ventura County $27.86 $248.34 $328.13 $182.62 $13.87 $14.6 $29.4 $189.67 $182.13 $189.78 % Change Median Price PSF $35. 3.% $325. $3. $275. $25. $225. $2. $175. $15. $125. $1. $75. $5. $25. $. 28 29 21 211 212 213 214 215 216 217 LA County $287.16 $26.95 $211.87 $24.94 $243.91 $233.31 $266.2 $283.91 $298.2 $293.7 Orange County $314.94 $224.41 $192.32 $216.15 $19. $24.49 $223.61 $246.57 $28.19 $259.2 Inland Empire $245.57 $187.29 $165.49 $135.16 $119.28 $125.7 $135.5 $132.88 $16.5 $169.4 Ventura County $253.62 $297.9 $22.17 $215.19 $183.47 $175.15 $18.41 $213.19 $19.56 $29.7 2.% 1.%.% -1.% -2.% -3.% -4.% 29 21 211 212 213 214 215 216 217 LA County -9.1% -18.8% -3.3% 19.% -4.3% 14.% 6.7% 5.% -1.4% Orange County -28.7% -14.3% 12.4% -12.1% 7.6% 9.4% 1.3% 13.6% -7.6% Inland Empire -23.7% -11.6% -18.3% -11.7% 4.9% 8.% -1.6% 2.8% 5.5% Ventura County 17.1% -31.9% 6.4% -14.7% -4.5% 3.% 18.2% -1.6% 1.%

VENTURA COUNTY OFFICE FOURTH QUARTER 217 MARKET REPORT OVERVIEW SOUTHERN CALIFORNIA MARKET MAP METHODOLOGY & TERMINOLOGY Methodology Non-owner occupied, office buildings that are 1, square feet and greater. Direct Vacant SF Space that is vacant and ready for occupancy by a user. The space is being offered for lease or sale directly from the landlord. Total Vacant W/ Sublet SF Space that is vacant and ready for occupancy by a user. The space is being offered for lease or sale by the landlord or for sublease by the current tenant. DAUM OFFICES LOS ANGELES, CALIFORNIA 81 S. Figueroa Street, Suite 6 Los Angeles, CA 917 213-626-911 LOS ANGELES NORTH, CALIFORNIA 2182 Burbank Boulevard, Suite 21 Woodland Hills, CA 91367 818-887-36 SANTA CLARITA VALLEY, CALIFORNIA 28494 Westinghouse Place, Suite 312 Valencia, CA 91355 661-75-2299 MID-COUNTIES, CALIFORNIA 1381 Cerritos Corporate Drive, Suite C Cerritos, CA 973 562-27-33 ORANGE COUNTY, CALIFORNIA 44 MacArthur Boulevard, Suite 95 Newport Beach, CA 9266 949-724-19 VENTURA & SANTA BARBARA, CALIFORNIA 751 Daily Drive, Suite 15 Camarillo, CA 931 85-987-8866 Direct Vacancy Rate Total vacant direct space (vacant space for lease or sale from the landlord or owner) divided by the total rentable square footage for existing buildings only. Vacancy W/ Sublet Rate Total vacant direct space and sublease space divided by the total rentable square footage for existing buildings only. Gross Absorption The total change in occupied space over a given period of time, counting space that is occupied but not space that is vacated by tenants. Gross absorption differs from leasing activity, which is the sum of all space leased over a certain period of time. SAN GABRIEL VALLEY, CALIFORNIA 13181 Crossroads Pkwy. N, Suite 1 City of Industry, CA 91746 562-695-7244 SOUTH BAY, CALIFORNIA 125 W. 19th Street, Suite 42 Gardena, CA 9248 31-538-67 INLAND EMPIRE, CALIFORNIA 3595 E. Inland Empire Boulevard, Bldg. 5 Ontario, CA 91764 99-98-1234 PHOENIX ARIZONA 172 E. Highland Avenue, Suite 12 Phoenix, AZ 8516 62-957-73 The information contained in this report has been obtained from sources deemed reliable and has incorporated fourth-party data which has not been independently verified by DAUM. While we do not doubt its accuracy, DAUM makes no guarantee or warranty as to its completeness or accuracy. Due to the dynamic (constantly changing) database which DAUM uses to compile and analyze markets contained in this report, previously published statistics may vary from the data published in this report. Statistics and data have been revised to reflect changes in the following categories: existing buildings being verified and added to the database, new or revised occupancy information gathered, new construction being added to the inventory, building demolitions and renovations, as well as other factors that would necessitate revisions to the data and the properties surveyed. This methodology allows us to present the most current and up-to-date information, trend analysis and comparative statistics for this report. Net Absorption The net change in occupied space over a given period of time, calculated by summing all the positive changes in occupancy (move ins) and subtracting all the negative changes in occupancy (move outs). Under Construction Planned buildings for which construction has started but have not yet been granted a Certificate of Occupancy. Planned buildings are not included. Completed in 217 New buildings with original construction completed in the year 217 and granted a Certificate of Occupancy. Renovated buildings are not included.

Section IV INLAND EMPIRE

INLAND EMPIRE INDUSTRIAL FOURTH QUARTER 217 QUICK STATS Direct Vacancy 5.1% Overall Vacancy 5.3% Lease Rate NNN $.57 Gross Absorption Under Construction MARKET TRENDS Current Quarter 9,23,744 SF 16,31,563 SF Change from Last Quarter Year Overall Vacancy Rental Rates Gross Absorption Under Construction ECONOMIC STATS INDUSTRIAL SUMMARY & OUTLOOK The Inland Empire industrial market witnessed vacancy rates increase during the quarter, moving from 4.8% to 5.3%. Average asking rents in the market increased 7.6%, year over year, moving from $.53nnn to $.57nnn. Gross absorption finished the quarter with 9.2 million square feet, while net absorption finished the quarter with a gain of 1.2 million square feet of occupied space. Under construction activity decreased during the quarter with 16.3 million square feet currently underway, as the market delivered 17.8 million square feet of new space for the year. The labor market continues to see improvement as unemployment rates have declined from 5.1% to 4.1%, year over year, and is now below California (4.2%) and slightly above the U.S (3.9%). Big-box industrial continues to lead the way for growth in this market. Since the 1st quarter of 213, buildings 1, sf and larger have seen vacancy decline from 6.5% to 6.4% (absorbing +79.3 million sf), while buildings under 2, have witnessed vacancy decrease from 5.5% to 3.7% (absorbing +2.2 million sf) and buildings 2, to 99,999 square feet have seen vacancy decline from 5.5% to 3.7% (absorbing +6.5 million sf). Demand for industrial space will continue to be driven by domestic and global consumption levels. In 217, the Los Angeles and Long Beach Port container traffic recorded its highest container total ever with 16.89 million TEU s, up 8% from 216 totals and 7% higher than its second highest year during 26. The investment and sale market for industrial real estate in the Inland Empire remains strong with median prices posting double-digit annual increases over the past three years and finished 217, up another 6.2% and remains at its highest level since 28. The capital markets remain solid with plenty of liquidity, but we do expect interest rates to rise in the coming year. We expect to see continued growth in the coming quarters, with vacancy levels remaining in the 4% to 6% range, as the large supply of new construction being delivered will likely exceed or remain near equilibrium with net absorption rates in the coming quarters. The Inland Empire industrial market remains one of the most vibrant growth markets in the United States. VACANCY & NET ABSORPTION Current Month Previous Year Dec. 17 Dec. 16 Unemployment 4.1% 5.1% Rate (MSA) Change in # +5,3 +49,8 Of Jobs (MSA) % Change for +.4% +3.4% Jobs (MSA) 8,, 7,, 6,, 5,, 4,, 3,, 2,, 1,, (1,,) 7.% 6.% 5.% 4.% 3.% 2.% 1.%.% Net Absorption SF Overall Vacancy

INLAND EMPIRE INDUSTRIAL FOURTH QUARTER 217 VACANCY RENTAL RATES & TIME ON THE MARKET 7.% 6.% 5.% 4.% 3.% 2.% 1.%.% $.6 $.55 $.5 $.45 $.4 $.35 $.3 1. 9. 8. 7. 6. 5. 4. 3. 2. 1.. Direct Vacancy Overall Vacancy Avg. Rent (NNN) Time to Lease (Months) Overall vacancy rates (including sublease space) increased during the quarter, moving from 4.8% to 5.3%. The West Inland Empire submarket finished the quarter with an overall vacancy rate of 3.8%, followed by the East Inland Empire submarket which finished at 7.7%. Since the fourth quarter of 216, overall vacancy rates have increased from 4.5% to 5.3%, and remain just above its 5-year average of 5.2%. With new construction being delivered in large quantities, we expect vacancy levels to remain in the 4% to 6% range, as we move into the coming quarters. Standard industrial asking rents increased 7.6%, year over year, moving from $.53nnn to $.57nnn. The West Inland Empire submarket finished the quarter with an average asking rate of $.6nnn, followed by the East Inland Empire submarket at $.55nnn. During the quarter overall average asking rents increased 1.8%, moving from $.56nnn to $.57nnn. The median time to lease edged lower from 3.5 months to 3. months during the quarter. We expect rents to continue to trend higher in the coming quarters, as demand still remains strong. ABSORPTION CONSTRUCTION ACTIVITY 18,, 25,, 16,, 14,, 2,, 12,, 1,, 15,, 8,, 6,, 1,, 4,, 5,, 2,, (2,,) Net Absorption SF Gross Absorption SF SF Newly Completed SF Under Construction Gross absorption totaled 9.2 million square feet for the quarter, down 26% from the previous quarter, and lower by 22% compared to a year ago. Net absorption finished the quarter in positive territory with a gain of 1.2 million square feet and gained 11.7 million square feet for the year. In 216, the market gained 21.3 million square feet, after gaining 19.5 million square feet during 215, +18.1 million square feet in 214, and a gain of 17.2 million square feet in 213. Overall activity and demand levels still remain among the highest in Southern California, and the market has recorded positive net absorption in 19 of the past 2 quarters, absorbing +87.9 million square feet during that period. Under construction activity moved lower during the quarter with 16.3 million square feet currently underway, as the market delivered 17.8 million square feet of new space for the year. In 216, the market delivered 18.5 million square feet of new space, after adding 2.7 million square feet in 215, 2.6 million square feet in 214, and 9.3 million square feet during 213. During the past five years, new deliveries have averaged 17.4 million square feet, annually. We expect new construction levels to remain at similar levels as we head into the first half of 218. Among the space currently under construction, only 27% of the new space has been pre-leased or is committed.

INLAND EMPIRE INDUSTRIAL FOURTH QUARTER 217 MARKET SNAPSHOT Total Direct Direct Total Vacant Vacancy Inventory Vacant Vacancy w/ Sublet with Sublet SUBMARKETS Square Footage Square Footage Rate Square Footage Rate Chino 48,29,979 1,755,476 3.6% 1,755,476 3.6% Fontana 61,861,381 4,66,265 6.6% 4,66,265 6.6% Mira Loma/Jurupa Valley 3,592,879 335,65 1.1% 849,19 2.8% Montclair / Upland 8,446,7 378,287 4.5% 378,287 4.5% Ontario 18,8,635 2,83,173 2.6% 2,842,71 2.6% Rancho Cucamonga 48,481,464 1,71,387 2.2% 1,262,37 2.6% Rialto 22,658,498 1,46,173 4.6% 1,257,154 5.5% Inland Empire West 328,34,536 11,456,366 3.5% 12,411,38 3.8% Colton 9,381,945 1,61,377 11.3% 1,87,861 11.6% Corona / Norco 32,67,634 2,51,553 6.3% 2,77,275 6.4% Moreno Valley 21,874,527 1,68,576 7.7% 1,68,576 7.7% Perris 21,919,797 1,215,352 5.5% 861,322 3.9% Redlands 28,43,884 3,964,448 14.1% 4,59,27 14.5% Riverside 46,365,456 3,45,265 6.6% 3,14,69 6.7% San Bernardino 37,33,426 2,259,36 6.1% 2,359,15 6.3% Inland Empire East 197,586,669 15,277,931 7.7% 15,23,144 7.7% Inland Empire Totals 525,927,25 26,734,297 5.1% 27,641,182 5.3% Industrial Market Inventory Inland Empire East 38% Inland Empire West 62% 9.% 8.% 7.% 6.% 5.% 4.% 3.% 2.% 1.%.% Industrial Vacancy Rates Inland Empire West Inland Empire East Inland Empire Totals Direct Vacancy Vacancy with Sublet Average Square Feet Square Feet Gross Absorption Industrial Built in Under Square Feet SUBMARKETS Rent 217 Construction Current Quarter Chino $.65 1,788,134 1,735,994 1,16,662 Fontana $.58 4,324,876 472,514 631,473 Mira Loma/Jurupa Valley $.57 278,93 443,124 Montclair / Upland $.65 88,338 16,9 192,168 Ontario $.62 2,258,78 725,88 2,39,146 Rancho Cucamonga $.6 9,47 318,23 877,633 Rialto $.57 3,196,38 24,557 Inland Empire West $.6 8,829,6 6,464,764 5,584,763 Colton $.46 922,614 52,47 Corona / Norco $.67 487,92 247,89 349,978 Moreno Valley $.5 1,2,745 2,299,577 3,772 Perris $.48 3,67,25 2,249,78 71,238 Redlands $.54 1,76,725 156,323 1,317,255 Riverside $.56 1,42,683 2,96,513 933,633 San Bernardino $.54 1,415,376 1,931,716 252,58 Inland Empire East $.55 9,15,25 9,845,799 3,618,981 Inland Empire Totals $.57 17,844,256 16,31,563 9,23,744 $.65 $.6 $.55 $.5 $.45 $.4 $.35 $.3 Industrial Rental Rates 4,, 35,, 3,, 25,, 2,, 15,, 1,, 5,, New Construction Activity $.25 $.2 Inland Empire West Inland Empire East Inland Empire Totals Inland Empire West Inland Empire East Square Feet Built in 217 Inland Empire Totals Square Feet Under Construction

INLAND EMPIRE INDUSTRIAL FOURTH QUARTER 217 SOUTHERN CALIFORNIA INDUSTRIAL SALES TREND ANALYSIS TOTAL SALES TRANSACTIONS Market 28 29 21 211 212 213 214 215 216 217 LA County 99 523 79 1,43 1,442 1,195 1,346 1,59 1,49 1,723 Orange County 216 163 21 278 445 399 35 435 47 51 Inland Empire 389 293 288 383 56 57 594 679 646 848 Ventura County 65 59 53 83 92 1 19 111 137 131 Totals 1,579 1,38 1,26 1,787 2,539 2,264 2,399 2,815 2,662 3,23 TOTAL TRANSACTION DOLLAR VALUE (MILLIONS) Bldg. SF 28 29 21 211 212 213 214 215 216 217 LA County $2,9.7 $855. $1,238.9 $1,564.7 $2,145.2 $2,31.2 $2,297.7 $3,255.2 $2,947.6 $3,46.7 Orange County $525.4 $268.7 $425.3 $622.4 $646.1 $856.6 $96.6 $97.3 $1,269.3 $1,137.4 Inland Empire $1,315.6 $61.1 $879.4 $1,2.2 $94.1 $1,289.8 $1,488.8 $1,571. $1,396.4 $1,944. Ventura County $19. $41.7 $13.4 $16. $191.3 $117.5 $217.8 $152.9 $198.4 $221.2 Totals $4,4.7 $1,775.5 $2,647. $3,295.3 $3,886.7 $4,295.1 $4,965. $5,886.3 $5,811.7 $6,79.3 TOTAL SQUARE FEET SOLD Bldg. SF 28 29 21 211 212 213 214 215 216 217 LA County 21,54,775 12,72,239 22,111,368 21,441,991 32,187,47 23,536,52 23,69,595 32,79,793 23,877,886 29,429,84 Orange County 3,876,845 3,227,465 4,642,255 6,932,955 9,112,749 9,451,638 9,421,962 8,91,899 8,791,77 8,915,84 Inland Empire 2,3,636 12,127,851 19,912,668 18,246,26 18,677,764 23,322,756 22,993,923 21,78,64 15,61,71 2,829,822 Ventura County 1,334,814 446,275 1,217,138 1,386,321 3,496,396 1,669,355 3,123,237 1,85,294 2,79,797 2,767,523 Totals 46,27,7 28,53,83 47,883,429 48,7,293 63,474,379 57,98,269 59,229,717 64,612,626 5,981,1 61,942,953 AVERAGE PRICE / SF Bldg. SF 28 29 21 211 212 213 214 215 216 217 LA County $119.13 $93.17 $72.12 $97.74 $96.81 $11.18 $114.27 $131.77 $151.36 $157.36 Orange County $157.9 $124.68 $12.72 $12.64 $11.4 $18.89 $129.56 $152.2 $163.78 $169.95 Inland Empire $83.14 $54.88 $53.35 $62.4 $66.74 $7.91 $73.69 $9.36 $13.75 $116. Ventura County $132.16 $13.65 $92.43 $11.31 $68.76 $84.3 $93.17 $15.72 $1.23 $17.39 Averages $17.2 $81.4 $67.79 $85.12 $88.31 $89.78 $99.83 $119.88 $136.21 $143.3 MEDIAN PRICE / SQUARE FOOT Bldg. SF 28 29 21 211 212 213 214 215 216 217 LA County $14.98 $115.93 $13.97 $17.96 $18.36 $114.1 $127.19 $142. $158.46 $177.59 Orange County $19.78 $15. $126.25 $125.4 $126.6 $136.89 $145. $169. $179.67 $23.87 Inland Empire $123.55 $86.85 $75.66 $7.64 $72.62 $76.33 $88.42 $1. $118.1 $125.38 Ventura County $151.19 $159.57 $114.43 $14.9 $99.77 $97.1 $113.66 $124.7 $122.33 $14.46 Median Average $137.91 $18.1 $94.62 $96.13 $99.91 $12.13 $114.26 $131.7 $147.82 $162.16 MEDIAN $ PSF INCREASE Bldg. SF 29 21 211 212 213 214 215 216 217 LA County -17.8% -1.3% 3.8%.4% 5.3% 11.5% 11.6% 11.6% 12.1% Orange County -21.4% -15.8% -1.%.8% 8.6% 5.9% 16.6% 6.3% 13.5% Inland Empire -29.7% -12.9% -6.6% 2.8% 5.1% 15.8% 13.1% 18.% 6.2% Ventura County 5.5% -28.3% -9.% -4.2% -2.7% 17.1% 9.7% -1.9% 14.8% Totals -21.6% -12.5% 1.6% 3.9% 2.2% 11.9% 14.7% 12.8% 9.7% The following information has been obtained from sources deemed reliable. While we do not doubt its accuracy, we make no warranty or representation about it. This report contains verified arms-length transactions, but excludes all portfolio sales.

Median Price PSF Annual Increase Square Footage Sold Average Price PSF Number of Transactions Transaction $ Volume (Millions) INLAND EMPIRE INDUSTRIAL FOURTH QUARTER 217 SOUTHERN CALIFORNIA INDUSTRIAL SALES TREND ANALYSIS Number of Transactions Transaction Volume $ 2, 1,8 1,6 1,4 1,2 1, 8 6 4 2 $4,. $3,5. $3,. $2,5. $2,. $1,5. $1,. $5. 28 29 21 211 212 213 214 215 216 217 LA County 99 523 79 1,43 1,442 1,195 1,346 1,59 1,49 1,723 Orange County 216 163 21 278 445 399 35 435 47 51 Inland Empire 389 293 288 383 56 57 594 679 646 848 Ventura County 65 59 53 83 92 1 19 111 137 131 35,, 3,, Square Footage Sold $. 28 29 21 211 212 213 214 215 216 217 LA County $2,9.7 $855. $1,238.9 $1,564.7 $2,145.2 $2,31.2 $2,297.7 $3,255.2 $2,947.6 $3,46.7 Orange County $525.4 $268.7 $425.3 $622.4 $646.1 $856.6 $96.6 $97.3 $1,269.3 $1,137.4 Inland Empire $1,315.6 $61.1 $879.4 $1,2.2 $94.1 $1,289.8 $1,488.8 $1,571. $1,396.4 $1,944. Ventura County $19. $41.7 $13.4 $16. $191.3 $117.5 $217.8 $152.9 $198.4 $221.2 $18. $16. Average Price PSF 25,, 2,, $14. $12. $1. 15,, $8. 1,, 5,, $6. $4. $2. 28 29 21 211 212 213 214 215 216 217 21,54,775 12,72,239 22,111,368 21,441,991 32,187,47 23,536,52 23,69,595 32,79,793 23,877,886 29,429,84 LA County Orange County 3,876,845 3,227,465 4,642,255 6,932,955 9,112,749 9,451,638 9,421,962 8,91,899 8,791,77 8,915,84 Inland Empire 2,3,636 12,127,851 19,912,668 18,246,26 18,677,764 23,322,756 22,993,923 21,78,64 15,61,71 2,829,822 Ventura County 1,334,814 446,275 1,217,138 1,386,321 3,496,396 1,669,355 3,123,237 1,85,294 2,79,797 2,767,523 Median Price PSF $. 28 29 21 211 212 213 214 215 216 217 LA County $119.13 $93.17 $72.12 $97.74 $96.81 $11.18 $114.27 $131.77 $151.36 $157.36 Orange County $157.9 $124.68 $12.72 $12.64 $11.4 $18.89 $129.56 $152.2 $163.78 $169.95 Inland Empire $83.14 $54.88 $53.35 $62.4 $66.74 $7.91 $73.69 $9.36 $13.75 $116. Ventura County $132.16 $13.65 $92.43 $11.31 $68.76 $84.3 $93.17 $15.72 $1.23 $17.39 % Change Median Price PSF $225. $2. $175. $15. $125. 3.% 2.% 1.%.% $1. $75. $5. $25. $. 28 29 21 211 212 213 214 215 216 217 LA County $14.98 $115.93 $13.97 $17.96 $18.36 $114.1 $127.19 $142. $158.46 $177.59 Orange County $19.78 $15. $126.25 $125.4 $126.6 $136.89 $145. $169. $179.67 $23.87 Inland Empire $123.55 $86.85 $75.66 $7.64 $72.62 $76.33 $88.42 $1. $118.1 $125.38 Ventura County $151.19 $159.57 $114.43 $14.9 $99.77 $97.1 $113.66 $124.7 $122.33 $14.46-1.% -2.% -3.% -4.% 29 21 211 212 213 214 215 216 217 LA County -17.8% -1.3% 3.8%.4% 5.3% 11.5% 11.6% 11.6% 12.1% Orange County -21.4% -15.8% -1.%.8% 8.6% 5.9% 16.6% 6.3% 13.5% Inland Empire -29.7% -12.9% -6.6% 2.8% 5.1% 15.8% 13.1% 18.% 6.2% Ventura County 5.5% -28.3% -9.% -4.2% -2.7% 17.1% 9.7% -1.9% 14.8%

INLAND EMPIRE INDUSTRIAL FOURTH QUARTER 217 PORTS OF LONG BEACH & LOS ANGELES HISTORICAL CONTAINER STATS & TRENDS Quarter & Year Loaded Inbound (Imports) Loaded Outbound (Exports) Total Loaded Empties Total Containers % Change (Prior Qtr.) % Change (Prior Yr.) % Change (Prior 2 Yrs.) 4Q 217 2,236,512 864,951 3,11,463 1,329,531 4,43,994-2.% 6.7% 14.3% 3Q 217 2,339,73 811,292 3,15,365 1,372,386 4,522,752 1.1% 11.4% 6.% 2Q 217 2,117,463 826,178 2,943,641 1,163,392 4,17,33 7.3% 7.4% 5.% 1Q 217 1,886,23 868,29 2,754,259 1,72,668 3,826,927-7.9% 6.5% 1.1% 4Q 216 2,87,498 879,267 2,966,765 1,186,955 4,153,72 2.3% 7.1% 12.4% 3Q 216 2,99,2 853,33 2,952,233 1,17,223 4,59,456 6.1% -4.8% 7.6% 2Q 216 2,96,446 856,215 2,818,94 1,7,246 3,825,34 6.5% -2.2% 3.4% 1Q 216 2,94,859 845,44 2,598,231 995,27 3,593,438-7.3% 3.4% -.1% 4Q 215 1,991,444 826,65 2,736,45 1,14,516 3,876,965-9.1% 4.9% 1.4% 3Q 215 1,817,161 844,562 2,661,724 1,284,213 4,265,623 9.% 13.% 7.1% 2Q 215 1,754,371 812,98 2,567,351 1,82,394 3,913,298 12.6% 5.8% 2.1% 1Q 215 1,89,18 789,51 2,598,231 878,445 3,476,676-5.9% -3.4% -3.3% 4Q 214 1,931,724 759,835 2,691,559 1,4,845 3,696,44-2.% -3.4%.3% 3Q 214 1,928,187 757,74 2,685,261 1,88,28 3,773,541 2.% -5.2% -2.8% 2Q 214 1,949,84 787,366 2,736,45 963,69 3,7,59 2.8% -3.4% 5.1% 1Q 214 2,37,574 779,934 2,817,58 78,456 3,597,965-5.9%.1% 15.5% 4Q 213 2,138,563 795,898 2,934,461 89,168 3,824,629-3.9% 3.8% 22.6% 3Q 213 2,168,57 812,93 2,981,41 1,,38 3,981,718 3.9% 2.6% 16.% 2Q 213 2,128,54 834,75 2,963,254 868,882 3,832,136 6.6% 8.9% 6.5% 1Q 213 2,38,181 84,821 2,879,3 716,573 3,595,576-2.4% 15.5%.2% Ports of Long Beach & Los Angeles Historical Container Stats Container Trade in TEUs* 5,, 4,5, 4,, 3,5, 3,, 2,5, 2,, 1,5, 1,, 5, 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 29 29 29 29 21 21 21 21 211 211 211 211 212 212 212 212 213 2132 13213 214 214 214 214 215 215 215 215216 216 216 216217 217 217 217 Loaded Inbound (Imports) Loaded Outbound (Exports) Empties

INLAND EMPIRE INDUSTRIAL FOURTH QUARTER 217 MARKET REPORT OVERVIEW SOUTHERN CALIFORNIA MARKET MAP METHODOLOGY & TERMINOLOGY Methodology Industrial and flex (R & D) buildings that are 5, square feet and greater. Direct Vacant SF Space that is vacant and ready for occupancy by a user. The space is being offered for lease or sale directly from the landlord. Total Vacant W/ Sublet SF Space that is vacant and ready for occupancy by a user. The space is being offered for lease or sale by the landlord or for sublease by the current tenant. DAUM OFFICES LOS ANGELES, CALIFORNIA 81 S. Figueroa Street, Suite 6 Los Angeles, CA 917 213-626-911 LOS ANGELES NORTH, CALIFORNIA 2182 Burbank Boulevard, Suite 21 Woodland Hills, CA 91367 818-887-36 SANTA CLARITA VALLEY, CALIFORNIA 28494 Westinghouse Place, Suite 312 Valencia, CA 91355 661-75-2299 MID-COUNTIES, CALIFORNIA 1381 Cerritos Corporate Drive, Suite C Cerritos, CA 973 562-27-33 ORANGE COUNTY, CALIFORNIA 44 MacArthur Boulevard, Suite 95 Newport Beach, CA 9266 949-724-19 VENTURA & SANTA BARBARA, CALIFORNIA 751 Daily Drive, Suite 15 Camarillo, CA 931 85-987-8866 Direct Vacancy Rate Total vacant direct space (vacant space for lease or sale from the landlord or owner) divided by the total rentable square footage for existing buildings only. Vacancy W/ Sublet Rate Total vacant direct space and sublease space divided by the total rentable square footage for existing buildings only. Gross Absorption The total change in occupied space over a given period of time, counting space that is occupied but not space that is vacated by tenants. Gross absorption differs from leasing activity, which is the sum of all space leased over a certain period of time. SAN GABRIEL VALLEY, CALIFORNIA 13181 Crossroads Pkwy. N, Suite 1 City of Industry, CA 91746 562-695-7244 SOUTH BAY, CALIFORNIA 125 W. 19th Street, Suite 42 Gardena, CA 9248 31-538-67 INLAND EMPIRE, CALIFORNIA 3595 E. Inland Empire Boulevard, Bldg. 5 Ontario, CA 91764 99-98-1234 PHOENIX ARIZONA 172 E. Highland Avenue, Suite 12 Phoenix, AZ 8516 62-957-73 The information contained in this report has been obtained from sources deemed reliable and has incorporated fourth-party data which has not been independently verified by DAUM. While we do not doubt its accuracy, DAUM makes no guarantee or warranty as to its completeness or accuracy. Due to the dynamic (constantly changing) database which DAUM uses to compile and analyze markets contained in this report, previously published statistics may vary from the data published in this report. Statistics and data have been revised to reflect changes in the following categories: existing buildings being verified and added to the database, new or revised occupancy information gathered, new construction being added to the inventory, building demolitions and renovations, as well as other factors that would necessitate revisions to the data and the properties surveyed. This methodology allows us to present the most current and up-to-date information, trend analysis and comparative statistics for this report. Net Absorption The net change in occupied space over a given period of time, calculated by summing all the positive changes in occupancy (move ins) and subtracting all the negative changes in occupancy (move outs). Under Construction Planned buildings for which construction has started but have not yet been granted a Certificate of Occupancy. Planned buildings are not included. Completed in 217 New buildings with original construction completed in the year 217 and granted a Certificate of Occupancy. Renovated buildings are not included.

INLAND EMPIRE OFFICE FOURTH QUARTER 217 QUICK STATS Direct Vacancy 1.6% Overall Vacancy 1.9% Lease Rate FSG $1.85 Gross Absorption Under Construction MARKET TRENDS Current Quarter 699,73 SF 45,24 SF Change from Last Quarter Year Overall Vacancy Rental Rates Gross Absorption Under Construction OFFICE SUMMARY & OUTLOOK The Inland Empire office market witnessed vacancy rates decrease from 11.3% to 1.9%, during the quarter. Average asking rents increased 2.8%, year over year, moving from $1.8 FSG to $1.85 FSG. Gross absorption finished the quarter with 7, square feet of activity, while net absorption posted a gain of 131, square feet of occupied space. Under construction activity was unchanged during the quarter with 45, square feet currently underway. The labor market continues to see improvement as unemployment rates have declined from 5.1% to 4.1%, year over year, and is now below California (4.2%) and slightly above the U.S (3.9%). The market remains more balanced with vacancy trending lower and rents rising at a more normalized rate. Job creation will remain the key to increased office demand. In December, non-farm employment grew by 3.4%, year over year, adding 49,8 new jobs, which should keep vacancy trending lower with only a small amount of new construction underway. The investment and sale market for office buildings in the Inland Empire continues to heat up, with median prices experiencing doubledigit price growth in 216, and finished up another 5.5% in 217. The capital markets remain solid with plenty of liquidity, but we do expect interest rates to rise in the coming year. We expect market fundamentals to strengthen further as we move into the coming quarter, with vacancy trending lower, and rents expected to increase 2% to 4% for most submarkets in the coming year. VACANCY & NET ABSORPTION ECONOMIC STATS Current Month Previous Year Dec. 17 Dec. 16 Unemployment 4.1% 5.1% Rate (MSA) Change in # +5,3 +49,8 Of Jobs (MSA) % Change for +.4% +3.4% Jobs (MSA) 4, 3, 2, 1, (1,) (2,) (3,) 2.% 18.% 16.% 14.% 12.% 1.% 8.% 6.% 4.% 2.%.% Net Absorption SF Overall Vacancy

INLAND EMPIRE OFFICE FOURTH QUARTER 217 VACANCY RENTAL RATES & TIME ON THE MARKET 18.% $1.9 25. 16.% $1.85 $1.8 2. 14.% 12.% $1.75 $1.7 $1.65 15. 1. 1.% $1.6 $1.55 5. 8.% $1.5. Direct Vacancy Overall Vacancy Avg. Rent (FSG) Time to Lease (Months) Overall vacancy rates (including sublease space) decreased during the quarter, moving from 11.3% to 1.9%. Of the three major submarkets within the Inland Empire market, the Riverside submarket ended the quarter with the lowest total vacancy of 9.8%, followed by the Greater Ontario Airport submarket at 1.4%, and the San Bernardino submarket finishing at 12.4%. Since the fourth quarter of 216, overall vacancy has decreased from 12.6% to 1.9%, and remains at its lowest level in more than a decade. ABSORPTION Average asking rates increased 2.8%, year over year, moving from $1.8 FSG to $1.85 FSG. Of the three submarkets within the Inland Empire market, the Greater Ontario Airport submarket ended the quarter with the highest average asking rate of $1.99 FSG, followed by the Riverside submarket at $1.98 FSG, and the San Bernardino submarket at $1.65 FSG. Average asking rates increased during the quarter, moving from $1.83 FSG to $1.85 FSG. The median time to lease increased during the quarter from 9. months to 9.8 months. CONSTRUCTION ACTIVITY 1,, 8, 6, 2, 18, 16, 14, 12, 4, 2, (2,) 1, 8, 6, 4, 2, (4,) Net Absorption SF Gross Absorption SF SF Newly Completed SF Under Construction Gross absorption for the quarter totaled 7, square feet of activity, up 33% compared to the previous quarter, and higher by 25% compared to a year ago. Net absorption finished the quarter in positive territory, gaining 131, square feet of occupied space and gained 68, square feet for the year. In 216, the market gained 459, square feet, after gaining 475, square feet during 215, +389, square feet in 214, and a gain of 535, square feet in 213. Overall demand remains strong, as the market has recorded positive net absorption in eighteen of the past twenty quarters, totaling 2.5 million square feet. Under construction activity was unchanged during the quarter, with 45, square feet currently underway, as the market delivered 35, square feet of new space for the year. In 216, the market delivered 29, square feet of new space, after adding 92,5 square feet in 215, 168, square feet during 214, and 24, square feet in 213. During the past five years, the market has averaged 7, square feet of new deliveries, annually. We expect new construction levels to remain at similar levels in the coming quarters, but could begin to rise if overall occupancy and rent growth continue to rise.

INLAND EMPIRE OFFICE FOURTH QUARTER 217 MARKET SNAPSHOT Total Direct Direct Total Total Inventory Vacant Vacancy Vacant w/ Sublet Vacant w/ Sublet SUBMARKETS Square Footage Square Footage Rate Square Footage Rate Greater Ontario Airport 9,844,87 964,395 9.8% 1,26,121 1.4% Riverside 11,721,333 1,126,683 9.6% 1,145,936 9.8% San Bernardino 11,877,516 1,462,154 12.3% 1,477,754 12.4% Inland Empire Totals 33,443,656 3,553,232 1.6% 3,649,811 1.9% Office Market Inventory 14.% Office Vacancy Rates San Bernardino 36% Greater Ontario Airport 29% 12.% 1.% 8.% 6.% Riverside 35% 4.% 2.%.% Greater Ontario Airport Vacancy- Direct Riverside San Bernardino Vacancy w/ Sublease Rate Average Low-High Square Feet Square Feet Gross Absorption Asking Rent Asking Rent Built in Under Square Feet SUBMARKETS FSG Range FSG 217 Construction Current Quarter Greater Ontario Airport $1.99 $.8-$3.5 34,86 238,16 Riverside $1.98 $.75-$3.4 45,24 289,483 San Bernardino $1.65 $.75-$2.55 172,114 Inland Empire Totals $1.85 $.75-$3.5 34,86 45,24 699,73 Office Rental Rates New Construction Activity $2.5 9, $2. 8, 7, $1.5 6, 5, $1. 4, 3, $.5 2, 1, $. Greater Ontario Airport Riverside San Bernardino Inland Empire Totals Greater Ontario Airport Riverside San Bernardino Inland Empire Totals Average Asking Rent FSG Square Feet Built in 217 Square Feet Under Construction

INLAND EMPIRE OFFICE FOURTH QUARTER 217 SOUTHERN CALIFORNIA OFFICE BUILDING SALE TREND ANALYSIS TOTAL SALES TRANSACTIONS Market 28 29 21 211 212 213 214 215 216 217 LA County 517 347 355 552 75 769 891 1,54 99 1,156 Orange County 247 13 151 25 294 347 334 425 392 41 Inland Empire 284 168 156 249 266 328 372 432 41 58 Ventura County 51 24 29 54 59 58 17 86 11 19 Totals 1,99 642 691 1,6 1,369 1,52 1,74 1,997 1,893 2,183 TOTAL TRANSACTION DOLLAR VALUE (MILLIONS) Bldg. SF 28 29 21 211 212 213 214 215 216 217 LA County $2,664.2 $753.7 $1,159.9 $2,72. $3,239.6 $5,953.1 $7,355.7 $4,843.9 $9,623.6 $8,57.2 Orange County $725.3 $364.9 $521.9 $625.9 $783.3 $1,385.1 $1,596.8 $2,797.9 $2,55.6 $2,273.2 Inland Empire $359.1 $85.7 $96. $13.2 $166.4 $237.5 $332.5 $642.6 $46.9 $554.2 Ventura County $93.9 $29.6 $81.3 $56.4 $43.2 $57.1 $246.9 $164.5 $169.4 $138.1 Totals $3,842.5 $1,233.9 $1,859.2 $2,884.6 $4,232.5 $7,632.8 $9,531.9 $8,448.9 $12,759.6 $11,22.6 TOTAL SQUARE FEET SOLD Bldg. SF 28 29 21 211 212 213 214 215 216 217 LA County 11,854,67 5,541,317 6,23,886 9,775,98 15,126,197 23,598,267 23,584,264 17,56,65 25,141,916 26,94,94 Orange County 3,283,136 2,23,473 3,59,352 3,865,353 6,76,432 7,31,297 8,173,268 12,235,143 11,838,955 9,14,83 Inland Empire 2,124,94 957,23 1,94,462 1,732,294 2,329,749 2,463,683 2,876,7 5,361,356 3,443,681 5,215,681 Ventura County 476,21 141,646 37,79 397,973 517,872 679,369 1,547,138 1,66,791 1,183,29 1,157,854 Totals 17,738,767 8,663,459 11,141,779 15,77,718 24,5,25 34,42,616 36,181,37 36,169,355 41,67,842 41,573,242 AVERAGE PRICE / SF Bldg. SF 28 29 21 211 212 213 214 215 216 217 LA County $273.87 $228.75 $235.36 $254.4 $264.17 $281.38 $344.77 $36.39 $429.23 $369.62 Orange County $293.51 $195.38 $182.39 $192.7 $211.65 $28.38 $27.78 $259.77 $264.8 $273.65 Inland Empire $212.76 $181.29 $13.41 $122.44 $135.29 $13.33 $144.25 $141.73 $17.69 $161.21 Ventura County $27.86 $248.34 $328.13 $182.62 $13.87 $14.6 $29.4 $189.67 $182.13 $189.78 Averages $268.41 $216.4 $21.92 $222.97 $235.55 $251.27 $292.9 $262.77 $353.81 $317.45 MEDIAN PRICE / SQUARE FOOT Bldg. SF 28 29 21 211 212 213 214 215 216 217 LA County $287.16 $26.95 $211.87 $24.94 $243.91 $233.31 $266.2 $283.91 $298.2 $293.7 Orange County $314.94 $224.41 $192.32 $216.15 $19. $24.49 $223.61 $246.57 $28.19 $259.2 Inland Empire $245.57 $187.29 $165.49 $135.16 $119.28 $125.7 $135.5 $132.88 $16.5 $169.4 Ventura County $253.62 $297.9 $22.17 $215.19 $183.47 $175.15 $18.41 $213.19 $19.56 $29.7 Median Average $286.42 $244.87 $2.89 $2.28 $216.91 $218.13 $242.37 $246.81 $278.51 $268.17 MEDIAN $ PSF INCREASE Bldg. SF 29 21 211 212 213 214 215 216 217 LA County -9.1% -18.8% -3.3% 19.% -4.3% 14.% 6.7% 5.% -1.4% Orange County -28.7% -14.3% 12.4% -12.1% 7.6% 9.4% 1.3% 13.6% -7.6% Inland Empire -23.7% -11.6% -18.3% -11.7% 4.9% 8.% -1.6% 2.8% 5.5% Ventura County 17.1% -31.9% 6.4% -14.7% -4.5% 3.% 18.2% -1.6% 1.% Totals -14.5% -18.% -.3% 8.3%.6% 11.1% 1.8% 12.8% -3.7% The following information has been obtained from sources deemed reliable. While we do not doubt its accuracy, we make no warranty or representation about it. This report contains verified arms-length transactions, but excludes all portfolio sales.

Median Price PSF Annual Increase Square Footage Sold Average Price PSF Number of Transactions Transaction $ Volume (Millions) INLAND EMPIRE OFFICE FOURTH QUARTER 217 SOUTHERN CALIFORNIA OFFICE BUILDING SALE TREND ANALYSIS Number of Transactions Transaction Volume $ 1,4 $12,. 1,2 $1,. 1, 8 6 $8,. $6,. 4 $4,. 2 $2,. 28 29 21 211 212 213 214 215 216 217 LA County 517 347 355 552 75 769 891 1,54 99 1,156 Orange County 247 13 151 25 294 347 334 425 392 41 Inland Empire 284 168 156 249 266 328 372 432 41 58 Ventura County 51 24 29 54 59 58 17 86 11 19 $. 28 29 21 211 212 213 214 215 216 217 LA County $2,664.2 $753.7 $1,159.9 $2,72. $3,239.6 $5,953.1 $7,355.7 $4,843.9 $9,623.6 $8,57.2 Orange County $725.3 $364.9 $521.9 $625.9 $783.3 $1,385.1 $1,596.8 $2,797.9 $2,55.6 $2,273.2 Inland Empire $359.1 $85.7 $96. $13.2 $166.4 $237.5 $332.5 $642.6 $46.9 $554.2 Ventura County $93.9 $29.6 $81.3 $56.4 $43.2 $57.1 $246.9 $164.5 $169.4 $138.1 Square Footage Sold Average Price PSF 3,, $5. $45. 25,, 2,, 15,, $4. $35. $3. $25. 1,, $2. $15. 5,, $1. $5. 28 29 21 211 212 213 214 215 216 217 11,854,67 5,541,317 6,23,886 9,775,98 15,126,197 23,598,267 23,584,264 17,56,65 25,141,916 26,94,94 LA County Orange County 3,283,136 2,23,473 3,59,352 3,865,353 6,76,432 7,31,297 8,173,268 12,235,143 11,838,955 9,14,83 Inland Empire 2,124,94 957,23 1,94,462 1,732,294 2,329,749 2,463,683 2,876,7 5,361,356 3,443,681 5,215,681 Ventura County 476,21 141,646 37,79 397,973 517,872 679,369 1,547,138 1,66,791 1,183,29 1,157,854 Median Price PSF $. 28 29 21 211 212 213 214 215 216 217 LA County $273.87 $228.75 $235.36 $254.4 $264.17 $281.38 $344.77 $36.39 $429.23 $369.62 Orange County $293.51 $195.38 $182.39 $192.7 $211.65 $28.38 $27.78 $259.77 $264.8 $273.65 Inland Empire $212.76 $181.29 $13.41 $122.44 $135.29 $13.33 $144.25 $141.73 $17.69 $161.21 Ventura County $27.86 $248.34 $328.13 $182.62 $13.87 $14.6 $29.4 $189.67 $182.13 $189.78 % Change Median Price PSF $35. $325. $3. $275. $25. $225. $2. $175. $15. $125. $1. $75. $5. $25. $. 28 29 21 211 212 213 214 215 216 217 LA County $287.16 $26.95 $211.87 $24.94 $243.91 $233.31 $266.2 $283.91 $298.2 $293.7 Orange County $314.94 $224.41 $192.32 $216.15 $19. $24.49 $223.61 $246.57 $28.19 $259.2 Inland Empire $245.57 $187.29 $165.49 $135.16 $119.28 $125.7 $135.5 $132.88 $16.5 $169.4 Ventura County $253.62 $297.9 $22.17 $215.19 $183.47 $175.15 $18.41 $213.19 $19.56 $29.7 3.% 2.% 1.%.% -1.% -2.% -3.% -4.% 29 21 211 212 213 214 215 216 217 LA County -9.1% -18.8% -3.3% 19.% -4.3% 14.% 6.7% 5.% -1.4% Orange County -28.7% -14.3% 12.4% -12.1% 7.6% 9.4% 1.3% 13.6% -7.6% Inland Empire -23.7% -11.6% -18.3% -11.7% 4.9% 8.% -1.6% 2.8% 5.5% Ventura County 17.1% -31.9% 6.4% -14.7% -4.5% 3.% 18.2% -1.6% 1.%

INLAND EMPIRE OFFICE FOURTH QUARTER 217 MARKET REPORT OVERVIEW SOUTHERN CALIFORNIA MARKET MAP METHODOLOGY & TERMINOLOGY Methodology Non-owner occupied, office buildings that are 1, square feet and greater. Direct Vacant SF Space that is vacant and ready for occupancy by a user. The space is being offered for lease or sale directly from the landlord. Total Vacant W/ Sublet SF Space that is vacant and ready for occupancy by a user. The space is being offered for lease or sale by the landlord or for sublease by the current tenant. DAUM OFFICES LOS ANGELES, CALIFORNIA 81 S. Figueroa Street, Suite 6 Los Angeles, CA 917 213-626-911 LOS ANGELES NORTH, CALIFORNIA 2182 Burbank Boulevard, Suite 21 Woodland Hills, CA 91367 818-887-36 SANTA CLARITA VALLEY, CALIFORNIA 28494 Westinghouse Place, Suite 312 Valencia, CA 91355 661-75-2299 MID-COUNTIES, CALIFORNIA 1381 Cerritos Corporate Drive, Suite C Cerritos, CA 973 562-27-33 ORANGE COUNTY, CALIFORNIA 44 MacArthur Boulevard, Suite 95 Newport Beach, CA 9266 949-724-19 VENTURA & SANTA BARBARA, CALIFORNIA 751 Daily Drive, Suite 15 Camarillo, CA 931 85-987-8866 Direct Vacancy Rate Total vacant direct space (vacant space for lease or sale from the landlord or owner) divided by the total rentable square footage for existing buildings only. Vacancy W/ Sublet Rate Total vacant direct space and sublease space divided by the total rentable square footage for existing buildings only. Gross Absorption The total change in occupied space over a given period of time, counting space that is occupied but not space that is vacated by tenants. Gross absorption differs from leasing activity, which is the sum of all space leased over a certain period of time. SAN GABRIEL VALLEY, CALIFORNIA 13181 Crossroads Pkwy. N, Suite 1 City of Industry, CA 91746 562-695-7244 SOUTH BAY, CALIFORNIA 125 W. 19th Street, Suite 42 Gardena, CA 9248 31-538-67 INLAND EMPIRE, CALIFORNIA 3595 E. Inland Empire Boulevard, Bldg. 5 Ontario, CA 91764 99-98-1234 PHOENIX ARIZONA 172 E. Highland Avenue, Suite 12 Phoenix, AZ 8516 62-957-73 The information contained in this report has been obtained from sources deemed reliable and has incorporated fourth-party data which has not been independently verified by DAUM. While we do not doubt its accuracy, DAUM makes no guarantee or warranty as to its completeness or accuracy. Due to the dynamic (constantly changing) database which DAUM uses to compile and analyze markets contained in this report, previously published statistics may vary from the data published in this report. Statistics and data have been revised to reflect changes in the following categories: existing buildings being verified and added to the database, new or revised occupancy information gathered, new construction being added to the inventory, building demolitions and renovations, as well as other factors that would necessitate revisions to the data and the properties surveyed. This methodology allows us to present the most current and up-to-date information, trend analysis and comparative statistics for this report. Net Absorption The net change in occupied space over a given period of time, calculated by summing all the positive changes in occupancy (move ins) and subtracting all the negative changes in occupancy (move outs). Under Construction Planned buildings for which construction has started but have not yet been granted a Certificate of Occupancy. Planned buildings are not included. Completed in 217 New buildings with original construction completed in the year 217 and granted a Certificate of Occupancy. Renovated buildings are not included.

Section V PHOENIX, ARIZONA

PHOENIX, ARIZONA INDUSTRIAL FOURTH QUARTER 217 QUICK STATS Direct Vacancy 7.5% Overall Vacancy 7.9% Lease Rate NNN $.54 Gross Absorption Under Construction MARKET TRENDS Current Quarter 6,838,224 SF 8,275,372 SF Change from Last Quarter Year Overall Vacancy Rental Rates Gross Absorption Under Construction INDUSTRIAL SUMMARY & OUTLOOK The Phoenix industrial market witnessed vacancy rates decrease during the quarter, moving from 8.2% to 7.9%. Average asking rents in the market increased 5.9%, year over year, moving from $.51nnn to $.54nnn. Gross absorption finished the quarter with 6.8 million square feet of activity, while net absorption posted a gain of 2.8 million square feet of occupied space. New construction activity increased during the quarter with 8.3 million square feet currently underway, as the market delivered 6.6 million square feet of new space for the year. The labor market continues to see improvement as unemployment rates have declined from 4.1% to 3.9%, year over year, adding 37,6 new jobs (+1.8%). Since the 1st quarter of 213, buildings 1, sf and larger have seen vacancy decline from 1.% to 9.4% (absorbing +19.6 million sf), while buildings under 2, sf have witnessed vacancy decrease from 9.2% to 4.9% (absorbing +2.9 million sf) and buildings 2, to 99,999 sf have seen vacancy decline from 13.4% to 7.6% (absorbing +12. million sf). During the past five years, the market has absorbed 38.1 million square feet of industrial space, while new construction has added 29. million square feet of new space. The investment and sale market for industrial real estate in the greater Phoenix market remains strong, as median sale prices increased 15.1%, year-over-year, and is higher by 61% from the bottom in 211. The capital markets remain solid with plenty of liquidity, but we do expect interest rates rise in the coming year. The Phoenix industrial market continues to see market fundamentals strengthen, and we expect vacancy to remain in the single-digits during 218, as strong demand levels still remain above new supply, and we expect rents to rise another 3% to 5% in the coming year. VACANCY & NET ABSORPTION ECONOMIC STATS 5,, 14.% Current Month Previous Year 4,, 12.% Dec. 17 Dec. 16 Unemployment 3.9% 4.1% Rate (MSA) Change in # +3,4 +37,6 Of Jobs (MSA) % Change for +.2% +1.8% Jobs (MSA) 3,, 2,, 1,, (1,,) 1.% 8.% 6.% 4.% 2.% (2,,).% Net Absorption SF Overall Vacancy

PHOENIX, ARIZONA INDUSTRIAL FOURTH QUARTER 217 VACANCY RENTAL RATES & TIME ON THE MARKET 14.% $.6 12. 12.% $.55 1. 1.% 8.% 6.% 4.% 2.% $.5 $.45 $.4 $.35 8. 6. 4. 2..% $.3. Direct Vacancy Overall Vacancy Avg. Rent (NNN) Time to Lease (Months) Overall vacancy rates (including sublease space) decreased during the quarter, moving from 8.2% to 7.9%. Of the five submarkets within the Phoenix market, the Northwest submarket ended the quarter with the lowest total vacancy of 6.%, followed by the Northeast at 7.3%, the Southeast at 7.8%, the Southwest at 8.2%, and the Airport submarket finishing the quarter at 9.7%. Since the fourth quarter of 216, overall vacancy rates have declined from 9.1% to 7.9%, and is now at its lowest level in more than a decade. ABSORPTION Standard industrial rental rates increased 5.9%, year over year, moving from $.51nnn to $.54nnn. Of the five major submarkets within the Phoenix market, the Northeast submarket ended the quarter with the highest standard industrial rental rate of $.9nnn, followed by the Southeast submarket at $.62nnn, the Airport at $.56nnn, the Northwest at $.55nnn, and the Southwest submarket finishing at $.41nnn. Average industrial asking rates were unchanged from the previous quarter, holding at $.54nnn, while the median time to lease was also unchanged, remaining at 4.8 months. CONSTRUCTION ACTIVITY 8,, 7,, 6,, 5,, 4,, 3,, 2,, 1,, (1,,) 9,, 8,, 7,, 6,, 5,, 4,, 3,, 2,, 1,, (2,,) Net Absorption SF Gross Absorption SF SF Newly Completed SF Under Construction Gross absorption during the quarter totaled 6.8 million square feet, up 18% compared to the previous quarter, and higher by 11% compared to a year ago. Net absorption posted a gain of 2.8 million square feet during the quarter and gained 1. million square feet for the year. In 216, the market gained 7.2 million square feet, after gaining 8.4 million square feet during 215, +8. million square feet during 214, and a gain of 4.6 million square feet in 213. The overall market continues to see very strong growth, recording positive net absorption during nineteen of the past twenty quarters, while absorbing 38.1 million square feet. Under construction activity moved higher during the quarter, with 8.3 million square feet currently underway, as the market delivered 6.6 million square feet for the year. In 216, the market delivered 5.7 million square feet of new space, after adding 5.4 million square feet of new space in 215. During 214, the market added 5.1 million square feet of new space, after adding 6.1 million square feet in 213. During the past five years, the market has averaged 5.8 million square feet of new space deliveries, annually. Among the space currently under construction, 43% of the new space has been pre-leased or is already committed.

PHOENIX, ARIZONA INDUSTRIAL FOURTH QUARTER 217 MARKET SNAPSHOT Total Direct Direct Total Vacant Vacancy Inventory Vacant Vacancy w/ Sublet with Sublet SUBMARKETS Square Footage Square Footage Rate Square Footage Rate Airport 5,376,455 4,713,62 9.4% 4,879,116 9.7% Northeast 16,23,621 1,127,948 7.% 1,177,618 7.3% Northwest 61,128,46 3,574,444 5.8% 3,651,223 6.% Southeast 92,71,727 6,534,29 7.1% 7,2,92 7.8% Southwest 96,825,967 7,858,153 8.1% 7,976,877 8.2% Phoenix Totals 316,66,23 23,88,437 7.5% 24,884,926 7.9% Industrial Market Inventory Southwest 31% Southeast 29% Airport 16% Northeast 5% Northwest 19% 12.% 1.% 8.% 6.% 4.% 2.% Industrial Vacancy Rates.% Airport Northeast Northwest Southeast Southwest Direct Vacancy Vacancy with Sublet Average Average Square Feet Square Feet Gross Absorption Industrial R&D / Flex Built in Under Square Feet SUBMARKETS Rent Rent 217 Construction Current Quarter Airport $.56 $.92 541,979 2,94,181 1,74,346 Northeast $.9 $1.3 262,524 387,391 Northwest $.55 $.88 2,196,175 1,68,31 Southeast $.62 $.93 787,46 3,71,29 1,658,794 Southwest $.41 $.62 2,854,92 3,11,162 2,37,392 Phoenix Totals $.54 $.82 6,643,4 8,275,372 6,838,224 $1.2 $1. $.8 $.6 $.4 $.2 $. Industrial Rental Rates Airport Northeast Northwest Southeast Southwest Phoenix Totals Average Industrial Rent Average R&D / Flex Rent 16,, 14,, 12,, 1,, 8,, 6,, 4,, 2,, New Construction Activity Airport Square Feet Built in 217 Northeast NorthwestSoutheastSouthwest Phoenix Totals Square Feet Under Construction

PHOENIX, ARIZONA INDUSTRIAL FOURTH QUARTER 217 PHOENIX INDUSTRIAL SALES TREND ANALYSIS TOTAL SALES TRANSACTIONS Market 28 29 21 211 212 213 214 215 216 217 Under 2, SF 235 116 147 27 197 32 36 375 41 46 2, - 99,999 SF 81 34 52 7 82 12 12 137 97 121 1, SF & Larger 22 5 9 16 23 12 14 32 23 19 Totals 338 155 28 293 32 434 494 544 521 6 TOTAL TRANSACTION DOLLAR VALUE (MILLIONS) Bldg. SF 28 29 21 211 212 213 214 215 216 217 Under 2, SF $213. $86.9 $89.3 $79.3 $99.7 $15.1 $168.7 $17.9 $22.7 $241. 2, - 99,999 SF $249.2 $76.5 $92.5 $163.2 $139.9 $237.9 $318.1 $342.5 $286.8 $344.4 1, SF & Larger $348.6 $87.2 $78.2 $12.8 $234.3 $255.3 $126.2 $232.4 $524.3 $233.3 Totals $81.8 $25.6 $26. $345.2 $473.9 $643.2 $613. $745.8 $1,13.7 $818.7 TOTAL SQUARE FEET SOLD Bldg. SF 28 29 21 211 212 213 214 215 216 217 Under 2, SF 1,748,617 99,169 1,156,678 1,43,238 1,578,587 2,426,348 2,762,975 3,79,796 3,284,167 3,572,192 2, - 99,999 SF 3,151,95 1,121,293 1,95,38 2,938,21 3,166,971 4,76,588 4,727,71 5,458,169 4,194,125 4,945,73 1, SF & Larger 5,314,955 1,857,72 2,421,898 3,62,593 4,817,996 3,797,898 2,147,253 5,182,343 8,135,456 3,521,781 Totals 1,215,477 3,969,164 5,528,884 7,971,41 9,563,554 1,3,834 9,637,938 13,72,38 15,613,748 12,39,73 AVERAGE PRICE / SF Bldg. SF 28 29 21 211 212 213 214 215 216 217 Under 2, SF $129.1 $89.73 $78.63 $62.37 $67.23 $7.55 $76.25 $76.71 $81.89 $98.39 2, - 99,999 SF $83.19 $68.23 $48.7 $56.66 $49.49 $61.14 $68.64 $73.32 $7.6 $79.71 1, SF & Larger $72.56 $51.5 $39.48 $44.25 $53.7 $67.21 $58.76 $63.2 $64.44 $73. Averages $85.76 $66.16 $51.83 $53.29 $54.31 $65.5 $68.15 $7.43 $68.92 $82.14 MEDIAN PRICE / SQUARE FOOT Bldg. SF 28 29 21 211 212 213 214 215 216 217 Under 2, SF $127.19 $9.98 $72.9 $66.17 $63.69 $7.82 $78. $76.43 $83.13 $95.98 2, - 99,999 SF $82.54 $58.73 $52.53 $55.7 $48.25 $53.84 $62.63 $67.6 $65.47 $75.81 1, SF & Larger $7.72 $69.55 $34.17 $38.39 $47.71 $64.76 $57.8 $64.8 $63.94 $69.85 Median Average $113.27 $83.5 $65.47 $55.5 $58.49 $65.63 $69.72 $74.49 $77.73 $89.5 MEDIAN $ PSF INCREASE Bldg. SF 29 21 211 212 213 214 215 216 217 Under 2, SF -28.5% -19.9% -9.2% -3.7% 11.2% 1.1% -2.% 8.8% 15.5% 2, - 99,999 SF -28.8% -1.6% 4.8% -12.4% 11.6% 16.3% 7.1% -2.4% 15.8% 1, SF & Larger -1.7% -5.9% 12.4% 24.3% 35.7% -1.7% 12.1% -1.3% 9.2% Totals -26.3% -21.6% -15.2% 5.4% 12.2% 6.2% 6.8% 4.3% 15.1%

Median Price PSF Annual Increase Square Footage Sold Average Price PSF Number of Transactions Transaction $ Volume (Millions) PHOENIX, ARIZONA INDUSTRIAL FOURTH QUARTER 217 PHOENIX INDUSTRIAL SALES TREND ANALYSIS Number of Transactions Transaction Volume $ 7 $1,2. 6 $1,. 5 4 3 2 $8. $6. $4. 1 $2. 28 29 21 211 212 213 214 215 216 217 Under 2, SF 235 116 147 27 197 32 36 375 41 46 2, - 99,999 SF 81 34 52 7 82 12 12 137 97 121 1, SF & Larger 22 5 9 16 23 12 14 32 23 19 Totals 338 155 28 293 32 434 494 544 521 6 Square Footage Sold $. 28 29 21 211 212 213 214 215 216 217 Under 2, SF $213. $86.9 $89.3 $79.3 $99.7 $15.1 $168.7 $17.9 $22.7 $241. 2, - 99,999 SF $249.2 $76.5 $92.5 $163.2 $139.9 $237.9 $318.1 $342.5 $286.8 $344.4 1, SF & Larger $348.6 $87.2 $78.2 $12.8 $234.3 $255.3 $126.2 $232.4 $524.3 $233.3 Totals $81.8 $25.6 $26. $345.2 $473.9 $643.2 $613. $745.8 $1,13.7 $818.7 Average Price PSF 18,, $14. 16,, $12. 14,, 12,, 1,, $1. $8. 8,, 6,, 4,, 2,, $6. $4. $2. 28 29 21 211 212 213 214 215 216 217 1,748,617 99,169 1,156,678 1,43,238 1,578,587 2,426,348 2,762,975 3,79,796 3,284,167 3,572,192 Under 2, SF 2, - 99,999 SF 3,151,95 1,121,293 1,95,38 2,938,21 3,166,971 4,76,588 4,727,71 5,458,169 4,194,125 4,945,73 1, SF & Larger 5,314,955 1,857,72 2,421,898 3,62,593 4,817,996 3,797,898 2,147,253 5,182,343 8,135,456 3,521,781 Totals 1,215,477 3,969,164 5,528,884 7,971,41 9,563,554 1,3,834 9,637,938 13,72,38 15,613,748 12,39,73 $. 28 29 21 211 212 213 214 215 216 217 Under 2, SF $129.1 $89.73 $78.63 $62.37 $67.23 $7.55 $76.25 $76.71 $81.89 $98.39 2, - 99,999 SF $83.19 $68.23 $48.7 $56.66 $49.49 $61.14 $68.64 $73.32 $7.6 $79.71 1, SF & Larger $72.56 $51.5 $39.48 $44.25 $53.7 $67.21 $58.76 $63.2 $64.44 $73. Averages $85.76 $66.16 $51.83 $53.29 $54.31 $65.5 $68.15 $7.43 $68.92 $82.14 Median Price PSF % Change Median Price PSF $14. $12. $1. $8. $6. $4. $2. 5.% 4.% 3.% 2.% 1.%.% -1.% -2.% -3.% -4.% -5.% $. 28 29 21 211 212 213 214 215 216 217 Under 2, SF $127.19 $9.98 $72.9 $66.17 $63.69 $7.82 $78. $76.43 $83.13 $95.98 2, - 99,999 SF $82.54 $58.73 $52.53 $55.7 $48.25 $53.84 $62.63 $67.6 $65.47 $75.81 1, SF & Larger $7.72 $69.55 $34.17 $38.39 $47.71 $64.76 $57.8 $64.8 $63.94 $69.85 Median Average $113.27 $83.5 $65.47 $55.5 $58.49 $65.63 $69.72 $74.49 $77.73 $89.5-6.% 29 21 211 212 213 214 215 216 217 Under 2, SF -28.5% -19.9% -9.2% -3.7% 11.2% 1.1% -2.% 8.8% 15.5% 2, - 99,999 SF -28.8% -1.6% 4.8% -12.4% 11.6% 16.3% 7.1% -2.4% 15.8% 1, SF & Larger -1.7% -5.9% 12.4% 24.3% 35.7% -1.7% 12.1% -1.3% 9.2% MEDIAN $ PSF INCREASE -26.3% -21.6% -15.2% 5.4% 12.2% 6.2% 6.8% 4.3% 15.1%

PHOENIX, ARIZONA INDUSTRIAL FOURTH QUARTER 217 MARKET REPORT OVERVIEW PHOENIX, ARIZONA MARKET MAP METHODOLOGY & TERMINOLOGY Methodology Industrial and flex (R & D) buildings that are 5, square feet and greater. Direct Vacant SF Space that is vacant and ready for occupancy by a user. The space is being offered for lease or sale directly from the landlord. Total Vacant W/ Sublet SF Space that is vacant and ready for occupancy by a user. The space is being offered for lease or sale by the landlord or for sublease by the current tenant. DAUM OFFICES LOS ANGELES, CALIFORNIA 81 S. Figueroa Street, Suite 6 Los Angeles, CA 917 213-626-911 LOS ANGELES NORTH, CALIFORNIA 2182 Burbank Boulevard, Suite 21 Woodland Hills, CA 91367 818-887-36 SANTA CLARITA VALLEY, CALIFORNIA 28494 Westinghouse Place, Suite 312 Valencia, CA 91355 661-75-2299 MID-COUNTIES, CALIFORNIA 1381 Cerritos Corporate Drive, Suite C Cerritos, CA 973 562-27-33 ORANGE COUNTY, CALIFORNIA 44 MacArthur Boulevard, Suite 95 Newport Beach, CA 9266 949-724-19 VENTURA & SANTA BARBARA, CALIFORNIA 751 Daily Drive, Suite 15 Camarillo, CA 931 85-987-8866 Direct Vacancy Rate Total vacant direct space (vacant space for lease or sale from the landlord or owner) divided by the total rentable square footage for existing buildings only. Vacancy W/ Sublet Rate Total vacant direct space and sublease space divided by the total rentable square footage for existing buildings only. Gross Absorption The total change in occupied space over a given period of time, counting space that is occupied but not space that is vacated by tenants. Gross absorption differs from leasing activity, which is the sum of all space leased over a certain period of time. SAN GABRIEL VALLEY, CALIFORNIA 13181 Crossroads Pkwy. N, Suite 1 City of Industry, CA 91746 562-695-7244 SOUTH BAY, CALIFORNIA 125 W. 19th Street, Suite 42 Gardena, CA 9248 31-538-67 INLAND EMPIRE, CALIFORNIA 3595 E. Inland Empire Boulevard, Bldg. 5 Ontario, CA 91764 99-98-1234 PHOENIX ARIZONA 172 E. Highland Avenue, Suite 12 Phoenix, AZ 8516 62-957-73 The information contained in this report has been obtained from sources deemed reliable and has incorporated fourth-party data which has not been independently verified by DAUM. While we do not doubt its accuracy, DAUM makes no guarantee or warranty as to its completeness or accuracy. Due to the dynamic (constantly changing) database which DAUM uses to compile and analyze markets contained in this report, previously published statistics may vary from the data published in this report. Statistics and data have been revised to reflect changes in the following categories: existing buildings being verified and added to the database, new or revised occupancy information gathered, new construction being added to the inventory, building demolitions and renovations, as well as other factors that would necessitate revisions to the data and the properties surveyed. This methodology allows us to present the most current and up-to-date information, trend analysis and comparative statistics for this report. Net Absorption The net change in occupied space over a given period of time, calculated by summing all the positive changes in occupancy (move ins) and subtracting all the negative changes in occupancy (move outs). Under Construction Planned buildings for which construction has started but have not yet been granted a Certificate of Occupancy. Planned buildings are not included. Completed in 217 New buildings with original construction completed in the year 217 and granted a Certificate of Occupancy. Renovated buildings are not included.

PHOENIX, ARIZONA OFFICE FOURTH QUARTER 217 QUICK STATS Direct Vacancy 16.7% Overall Vacancy 17.7% Lease Rate FSG $26.53 Gross Absorption Under Construction MARKET TRENDS Current Quarter 3,685,794 SF 1,726,697 SF Change from Last Quarter Year Overall Vacancy Rental Rates Gross Absorption Under Construction OFFICE SUMMARY & OUTLOOK The Phoenix office market witnessed vacancy rates decrease during the quarter, moving from 18.1% to 17.7%. Average annual rents increased 6.9%, year over year, moving from $24.81 FSG to $26.53 FSG. Gross absorption finished the quarter with 3.7 million square feet of activity, while net absorption finished with a gain of 799, square feet of occupied space. Under construction activity increased during the quarter with 1.7 million square feet currently underway, as the market delivered 1.8 million square feet of new space for the year. Overall demand for office space continues to see solid growth and has recorded positive net absorption in eighteen of the past twenty quarters, totaling 12.7 million square feet of occupied space gains. The labor market continues to see improvement as unemployment rates have declined from 4.1% to 3.9%, year over year, adding 37,6 new jobs (+1.8%). The University of Arizona is forecasting annualized employment growth of 2.7% for 218 and 2.5% for 219. The market remains relatively balanced with vacancy trending lower, and average asking rents trending above inflation rates during the past two years. Activity in the investment and sale market for office buildings in the greater Phoenix market remains strong, as median sale prices are up 41% since bottoming out in 212, but still remains below pre-recession levels by 31%. The capital markets remain active with plenty of liquidity, but we do expect interest rates to rise in the coming year. Other than vacancy remaining in the mid-to-high teens, the Phoenix office market fundamentals remain strong as we move into 218. We expect to see vacancy trending lower, with rents expected to increase another 3% to 5% for most submarkets in the coming year. VACANCY & NET ABSORPTION ECONOMIC STATS Current Month Previous Year Dec. 17 Dec. 16 Unemployment 3.9% 4.1% Rate (MSA) Change in # +3,4 +37,6 Of Jobs (MSA) % Change for +.2% +1.8% Jobs (MSA) 2,5, 2,, 1,5, 1,, 5, (5,) 24.% 22.% 2.% 18.% 16.% 14.% 12.% 1.% 8.% 6.% 4.% 2.%.% Net Absorption SF Overall Vacancy

PHOENIX, ARIZONA OFFICE FOURTH QUARTER 217 VACANCY RENTAL RATES & TIME ON THE MARKET 24.% $29. 25. 22.% 2.% $27. $25. 2. 18.% $23. 15. 16.% $21. 1. 14.% 12.% $19. $17. 5. 1.% $15.. Direct Vacancy Overall Vacancy Avg. Rent (FSG) Time to Lease (Months) Overall vacancy rates (including sublease space) decreased during the quarter, moving from 18.1% to 17.7%. Of the nine submarkets within the Phoenix market, the Pinal County submarket ended the quarter with the lowest total vacancy of 1.3%, followed by East Valley at 13.3%, Scottsdale at 14.7%, East Phoenix at 16.1%, West Phoenix at 18.2%, North Phoenix at 19.5%, NW Phoenix at 19.9%, the Central Corridor at 2.9%, and the Airport finishing at 23.6%. Since the fourth quarter of 216, overall vacancy has decreased from 18.% to 17.7%, and remains at its lowest level in more than a decade. ABSORPTION Average annual asking rates increased 6.9%, year over year, moving from $24.81 FSG to $26.53 FSG. Of the nine submarkets within the Phoenix market, the Scottsdale submarket ended the quarter with the highest average asking rate of $3.26 FSG, followed by East Valley ($28.88 FSG), East Phoenix ($28.82 FSG), the Airport ($27.8 FSG), Central Corridor ($25.49 FSG), North Phoenix ($25.19 FSG), West Phoenix ($24.78 FSG), Pinal County at $23.2 FSG, and NW Phoenix at $2.96 FSG. Average annual asking rates increased 1.9% from previous quarter, moving from $26.3 to $26.53 FSG. CONSTRUCTION ACTIVITY 4,, 3,5, 3,, 2,5, 2,, 1,5, 1,, 5, 4,5, 4,, 3,5, 3,, 2,5, 2,, 1,5, 1,, 5, (5,) Net Absorption SF Gross Absorption SF SF Newly Completed SF Under Construction Gross absorption totaled 3.7 million square feet during the quarter, up 7% compared to the previous quarter, and higher by 19% compared to a year ago. Net absorption finished the quarter in positive territory, gaining 799, square feet and gained 1.9 million square feet for the year. In 216, the market gained 2.9 million square feet, after gaining 3.1 million square feet during 215, +3. million square feet in 214, and a gain of 1.7 million square feet in 213. Overall demand remains solid, as the market has recorded positive net absorption in eighteen of the past twenty quarters, totaling 12.7 million square feet. We expect to see similar growth levels as we move into 218. Under construction activity moved higher during the quarter, with nearly 1.7 million square feet of space currently underway, as the market has delivered 1.8 million square feet of new space for the year. The market delivered 2.1 million square feet of new space in 216, after adding 2.6 million square feet during 215. In 214, the market delivered 1. million square feet, after adding 265, square feet during 213. During the past five years, the market has averaged 1.6 million square feet of new construction, annually. We expect new construction to remain near its current level, as we move into 218.

PHOENIX, ARIZONA OFFICE FOURTH QUARTER 217 MARKET SNAPSHOT Total Direct Direct Total Total Inventory Vacant Vacancy Vacant w/ Sublet Vacant w/ Sublet SUBMARKETS Square Footage Square Footage Rate Square Footage Rate Airport 15,273,896 3,43,591 19.9% 3,62,874 23.6% Central Corridor 19,241,6 3,87,982 2.1% 4,18,94 2.9% East Phoenix 14,32,165 2,194,174 15.3% 2,32,616 16.1% East Valley 24,472,179 3,139,914 12.8% 3,247,658 13.3% North Phoenix 5,529,125 979,383 17.7% 1,78,447 19.5% NW Phoenix 18,976,668 3,762,676 19.8% 3,785,188 19.9% Pinal County 658,111 67,543 1.3% 67,543 1.3% Scottsdale 23,533,138 3,263,2 13.9% 3,463,918 14.7% West Phoenix 5,962,86 1,59,147 17.8% 1,84,88 18.2% Phoenix Totals 127,949,94 21,38,61 16.7% 22,651,272 17.7% Pinal County.5% Scottsdale 18.4% Office Market Inventory NW Phoenix 14.8% North Phoenix 4.3% West Phoenix 4.7% Airport 11.9% Central Corridor 15.% East Phoenix 11.2% East Valley 19.1% 25.% 2.% 15.% 1.% 5.% Office Vacancy Rates.% Airport Central Corridor East East Valley Phoenix North Phoenix NW Phoenix Pinal Scottsdale West County Phoenix Vacancy- Direct Vacancy w/ Sublease Rate Average Low-High Square Feet Square Feet Gross Absorption Asking Rent Asking Rent Built in Under Square Feet SUBMARKETS FSG Range FSG 217 Construction Current Quarter Airport $27.8 $12.-$4. 35,523 235, 271,355 Central Corridor $25.49 $1.-$38.5 266,174 4,748 East Phoenix $28.82 $1.-$42. 118,9 528,866 East Valley $28.88 $1.-$48. 1,31,483 945,698 661,553 North Phoenix $25.19 $11.5-$4. 16,165 168,383 NW Phoenix $2.96 $1.-$34. 16,5 383,72 Pinal County $23.2 $16.5-$29. 414 Scottsdale $3.26 $1.-$5. 271, 36,735 1,224,968 West Phoenix $24.78 $1.-$38. 11,2 125, 45,85 Phoenix Totals $26.53 $1.-$5. 1,795,871 1,726,697 3,685,794 $35. $3. Office Rental Rates 4,, 3,5, New Construction Activity 1,726,697 $25. 3,, $2. $15. $1. $5. 2,5, 2,, 1,5, 1,, 5, $. Airport Central Corridor East East Valley Phoenix North Phoenix NW Phoenix Pinal Scottsdale County West Phoenix Phoenix Totals Airport Central Corridor East Phoenix East Valley North Phoenix NW Phoenix Pinal County Scottsdale West Phoenix Phoenix Totals Average Asking Rent FSG Square Feet Built in 217 Square Feet Under Construction

PHOENIX, ARIZONA OFFICE FOURTH QUARTER 217 PHOENIX OFFICE BUILDING SALE TREND ANALYSIS TOTAL SALES TRANSACTIONS Market 28 29 21 211 212 213 214 215 216 217 Class A 13 8 4 1 6 6 6 21 8 1 Class B 22 18 16 148 138 183 22 249 24 245 Class C 51 52 46 91 122 139 165 163 189 253 Totals 284 168 156 249 266 328 373 433 41 58 TOTAL TRANSACTION DOLLAR VALUE (MILLIONS) Bldg. SF 28 29 21 211 212 213 214 215 216 217 Class A $95.6 $1.7 $4.5 $5.4 $39.2 $52.4 $25.7 $216.7 $74.7 $167.1 Class B $218.7 $65.3 $72.2 $13.4 $89.3 $135. $248.3 $349.2 $297. $275.6 Class C $44.8 $18.6 $19.4 $21.5 $37.8 $5.1 $62.9 $77.1 $89.2 $11.7 Totals $359.1 $85.7 $96. $13.2 $166.4 $237.5 $336.9 $643. $46.9 $553.3 TOTAL SQUARE FEET SOLD Bldg. SF 28 29 21 211 212 213 214 215 216 217 Class A 42,143 76,154 57,316 69,83 51,754 371,954 174,288 1,377,199 441,5 1,111,276 Class B 1,338,917 654,457 78,598 1,157,149 1,284,964 1,425,297 1,936,527 3,132,36 1,888,957 2,62,62 Class C 365,88 226,412 256,548 55,315 534,31 666,432 88,184 869,744 1,113,719 1,421,68 Totals 2,124,94 957,23 1,94,462 1,732,294 2,329,749 2,463,683 2,918,999 5,378,979 3,443,681 5,153,576 AVERAGE PRICE / SF Bldg. SF 28 29 21 211 212 213 214 215 216 217 Class A $284.5 $269.81 $84.29 $91.27 $119.13 $163.81 $155.25 $172.16 $188.33 $193.22 Class B $215.41 $197.59 $14.12 $124.9 $131.94 $128.62 $152.2 $133.28 $184.25 $165.89 Class C $131.53 $135.17 $114.29 $121.33 $169.2 $11.56 $114.43 $114.62 $115.17 $129.91 Averages $212.76 $181.29 $13.41 $122.44 $135.29 $13.33 $143.52 $141.27 $17.69 $161.33 MEDIAN PRICE / SQUARE FOOT Bldg. SF 28 29 21 211 212 213 214 215 216 217 Class A $287. $225. $151.64 $133.26 $115.46 $129.77 $158.86 $17.62 $183.59 $195.77 Class B $262.94 $29.4 $176.28 $139.5 $13.61 $14.2 $15.4 $142.7 $177.35 $182.34 Class C $142.38 $132.2 $139.15 $119.5 $12.22 $11.56 $114.25 $113.1 $131.5 $123.5 Median Average $245.57 $187.29 $165.49 $135.16 $119.28 $125.7 $134.22 $142.44 $16.5 $168.75 MEDIAN $ PSF INCREASE Bldg. SF 29 21 211 212 213 214 215 216 217 Class A -21.6% -32.6% -12.1% -13.4% 12.4% 22.4% 7.4% 7.6% 6.6% Class B -2.4% -15.8% -2.9% -6.4% 7.2% 7.4% -5.1% 24.3% 2.8% Class C -7.1% 5.3% -14.4% -14.1% 8.2% 3.3% -1.1% 16.4% -6.1% Totals -23.7% -11.6% -18.3% -11.7% 4.9% 7.3% 6.1% 12.7% 5.1%

Median Price PSF Annual Increase Square Footage Sold Average Price PSF Number of Transactions Transaction $ Volume (Millions) PHOENIX, ARIZONA OFFICE FOURTH QUARTER 217 PHOENIX OFFICE BUILDING SALE TREND ANALYSIS Number of Transactions Transaction Volume $ 6 $7. 5 $6. $5. 4 $4. 3 $3. 2 $2. $1. 1 $. 28 29 21 211 212 213 214 215 216 217 Class A 13 8 4 1 6 6 6 21 8 1 Class B 22 18 16 148 138 183 22 249 24 245 Class C 51 52 46 91 122 139 165 163 189 253 Totals 284 168 156 249 266 328 373 433 41 58 -$1. 28 29 21 211 212 213 214 215 216 217 Class A $95.6 $1.7 $4.5 $5.4 $39.2 $52.4 $25.7 $216.7 $74.7 $167.1 Class B $218.7 $65.3 $72.2 $13.4 $89.3 $135. $248.3 $349.2 $297. $275.6 Class C $44.8 $18.6 $19.4 $21.5 $37.8 $5.1 $62.9 $77.1 $89.2 $11.7 Totals $359.1 $85.7 $96. $13.2 $166.4 $237.5 $336.9 $643. $46.9 $553.3 Square Footage Sold Average Price PSF 6,, $325. $3. 5,, $275. $25. 4,, $225. $2. 3,, $175. $15. 2,, $125. $1. $75. 1,, $5. $25. 28 29 21 211 212 213 214 215 216 217 $. 28 29 21 211 212 213 214 215 216 217 Class A 42,143 76,154 57,316 69,83 51,754 371,954 174,288 1,377,199 441,5 1,111,276 Class A $284.5 $269.81 $84.29 $91.27 $119.13 $163.81 $155.25 $172.16 $188.33 $193.22 Class B 1,338,917 654,457 78,598 1,157,149 1,284,964 1,425,297 1,936,527 3,132,36 1,888,957 2,62,62 Class B $215.41 $197.59 $14.12 $124.9 $131.94 $128.62 $152.2 $133.28 $184.25 $165.89 Class C 365,88 226,412 256,548 55,315 534,31 666,432 88,184 869,744 1,113,719 1,421,68 Class C $131.53 $135.17 $114.29 $121.33 $169.2 $11.56 $114.43 $114.62 $115.17 $129.91 Totals 2,124,94 957,23 1,94,462 1,732,294 2,329,749 2,463,683 2,918,999 5,378,979 3,443,681 5,153,576 Averages $212.76 $181.29 $13.41 $122.44 $135.29 $13.33 $143.52 $141.27 $17.69 $161.33 Median Price PSF % Change Median Price PSF $325. $3. $275. $25. $225. $2. $175. $15. $125. $1. $75. $5. $25. $. 28 29 21 211 212 213 214 215 216 217 Class A $287. $225. $151.64 $133.26 $115.46 $129.77 $158.86 $17.62 $183.59 $195.77 Class B $262.94 $29.4 $176.28 $139.5 $13.61 $14.2 $15.4 $142.7 $177.35 $182.34 Class C $142.38 $132.2 $139.15 $119.5 $12.22 $11.56 $114.25 $113.1 $131.5 $123.5 Median Average $245.57 $187.29 $165.49 $135.16 $119.28 $125.7 $134.22 $142.44 $16.5 $168.75 3.% 2.% 1.%.% -1.% -2.% -3.% -4.% 29 21 211 212 213 214 215 216 217 Class A -21.6% -32.6% -12.1% -13.4% 12.4% 22.4% 7.4% 7.6% 6.6% Class B -2.4% -15.8% -2.9% -6.4% 7.2% 7.4% -5.1% 24.3% 2.8% Class C -7.1% 5.3% -14.4% -14.1% 8.2% 3.3% -1.1% 16.4% -6.1% All Buildings -23.7% -11.6% -18.3% -11.7% 4.9% 7.3% 6.1% 12.7% 5.1%

PHOENIX, ARIZONA OFFICE FOURTH QUARTER 217 MARKET REPORT OVERVIEW PHOENIX, ARIZONA MARKET MAP METHODOLOGY & TERMINOLOGY Methodology Non-owner occupied, office buildings that are 1, square feet and greater. Direct Vacant SF Space that is vacant and ready for occupancy by a user. The space is being offered for lease or sale directly from the landlord. Total Vacant W/ Sublet SF Space that is vacant and ready for occupancy by a user. The space is being offered for lease or sale by the landlord or for sublease by the current tenant. DAUM OFFICES LOS ANGELES, CALIFORNIA 81 S. Figueroa Street, Suite 6 Los Angeles, CA 917 213-626-911 LOS ANGELES NORTH, CALIFORNIA 2182 Burbank Boulevard, Suite 21 Woodland Hills, CA 91367 818-887-36 SANTA CLARITA VALLEY, CALIFORNIA 28494 Westinghouse Place, Suite 312 Valencia, CA 91355 661-75-2299 MID-COUNTIES, CALIFORNIA 1381 Cerritos Corporate Drive, Suite C Cerritos, CA 973 562-27-33 ORANGE COUNTY, CALIFORNIA 44 MacArthur Boulevard, Suite 95 Newport Beach, CA 9266 949-724-19 VENTURA & SANTA BARBARA, CALIFORNIA 751 Daily Drive, Suite 15 Camarillo, CA 931 85-987-8866 Direct Vacancy Rate Total vacant direct space (vacant space for lease or sale from the landlord or owner) divided by the total rentable square footage for existing buildings only. Vacancy W/ Sublet Rate Total vacant direct space and sublease space divided by the total rentable square footage for existing buildings only. Gross Absorption The total change in occupied space over a given period of time, counting space that is occupied but not space that is vacated by tenants. Gross absorption differs from leasing activity, which is the sum of all space leased over a certain period of time. SAN GABRIEL VALLEY, CALIFORNIA 13181 Crossroads Pkwy. N, Suite 1 City of Industry, CA 91746 562-695-7244 SOUTH BAY, CALIFORNIA 125 W. 19th Street, Suite 42 Gardena, CA 9248 31-538-67 INLAND EMPIRE, CALIFORNIA 3595 E. Inland Empire Boulevard, Bldg. 5 Ontario, CA 91764 99-98-1234 PHOENIX ARIZONA 172 E. Highland Avenue, Suite 12 Phoenix, AZ 8516 62-957-73 The information contained in this report has been obtained from sources deemed reliable and has incorporated fourth-party data which has not been independently verified by DAUM. While we do not doubt its accuracy, DAUM makes no guarantee or warranty as to its completeness or accuracy. Due to the dynamic (constantly changing) database which DAUM uses to compile and analyze markets contained in this report, previously published statistics may vary from the data published in this report. Statistics and data have been revised to reflect changes in the following categories: existing buildings being verified and added to the database, new or revised occupancy information gathered, new construction being added to the inventory, building demolitions and renovations, as well as other factors that would necessitate revisions to the data and the properties surveyed. This methodology allows us to present the most current and up-to-date information, trend analysis and comparative statistics for this report. Net Absorption The net change in occupied space over a given period of time, calculated by summing all the positive changes in occupancy (move ins) and subtracting all the negative changes in occupancy (move outs). Under Construction Planned buildings for which construction has started but have not yet been granted a Certificate of Occupancy. Planned buildings are not included. Completed in 217 New buildings with original construction completed in the year 217 and granted a Certificate of Occupancy. Renovated buildings are not included.