Positive Net Absorption Recorded For The Ninth Consecutive Quarter

OFFICE SAN FERNANDO & VENTURA MARKET REPORT Positive Net Absorption Recorded For The Ninth Consecutive Quarter MARKET OVERVIEW MARKET INDICATORS - VACANCY 15.2% NET ABSORPTION 116,700 CONSTRUCTION 120,933 RENTAL RATE $2.18 P FSG The San Fernando Valley and Ventura County office market saw total vacancy decrease to 15.2%, which is the ninth consecutive quarter to record a decrease in vacancy rates. Net absorption in second quarter 2015 was 116,700 square feet (), bringing the vacancy rate down by 40 basis points. Direct weighted average asking rents remained flat at $2.18 per square foot (P) per month Full Service Gross (FSG). New leasing activity in the second quarter was 631,086 compared to 628,530 in first quarter 2015. Investment sales activity increased in second quarter as investors continue to take advantage of low interest rates. Approximately 2.1 million of office buildings sold at an average cap rate of 6.3%. The investment sale activity was as follows: SteelWave, Inc acquired 225 W Hillcrest Dr in Thousand Oaks for $32.7 million ($207 P) from Rising Realty Partners, Maxxam Enterprises acquired 6200 Canoga Ave in Woodland Hills for $15.6 million ($150 P) from Embarcadero Capital Partners LLC and Warner Park Center, Inc acquired 21800 Burbank Blvd in Woodland Hills for $12.9 million ($217 P) from CW Capital Asset Management LLC. UNEMPLOYMENT 7.6% MARKET TRENDS - >> Total vacancy rate decreases from nnn15.6% to 15.2% HISTORICAL VACANCY VS RENTS V & Ventura County Office Market Q2 2011 - HISTORICAL NET ABSORPTION & CONSTRUCTION COMPLETIONS V & Ventura County Office Market -Q2 2011 - >> Weighted average asking rental rate recorded at $2.18 P FSG $2.60 $2.50 RENTS VACANCY 25% 20% 350,000 250,000 NET ABSORPTION CONSTRUCTION COMPLETIONS >> Leasing activity decreases to 631,086 >> There was positive demand with 116,700 net absorption $ P PER MONTH (WEIGHTED) $2.40 $2.30 $2.20 $2.10 15% 10% 5% % VACANT (TOTAL) 150,000 50,000 (50,000) (150,000) (250,000) >> 120,933 under construction $2.00 2Q11 2Q12 2Q13 2Q14 2Q15 0% (350,000) 2Q11 2Q12 2Q13 2Q14 2Q15 1 Colliers International continuously refines its database. As a result, data reflected in this report may not be consistent with data reported in previous quarters. www.colliers.com/losangeles

MARKET REPORT OFFICE SAN FERNANDO & VENTURA SAN FERNANDO & VENTURA DEMOGRAPHICS >> POPULATION: 10,136,509 (2015 Estimate) 10,510,281 (2020 Projection) 3.69% (Growth 2015-2020) >> HOUSEHOLD INCOME: $78,309 (Average) $54,514 (Median) >> JOB GROWTH: 2.4% (past 12 months) >> UNEMPLOYMENT RATE: 7.6% (as of May 2015) VACANCY The total vacancy rate, including sublet space decreased to 15.2%, down 40 basis points from 15.6% reported in first quarter 2015. A longer historical perspective shows that the vacancy rate a year ago stood at 16.4%. Total vacancy rates were highest in the West Ventura County at 20.0%. The submarket with the lowest vacancy in second quarter was Central San Fernando Valley at 11.2%. A comparison by class illustrates that vacancy rates were highest for Class C space (20.7%) and lowest for Class A space (14.3%) with Class B space (16.1%) in between. NET ABSORPTION Larger tenants continue to sign leases or expand from their existing space as absorption has remained positive for nine consecutive quarters. This is a promising trend moving into mid-2015. Net absorption was 116,700 in second quarter largely due to positive net absorption recorded in West San Fernando Valley (140,700 ) West Ventura County (25,900 ) and Central San Fernando Valley (300 ). The following submarkets recorded negative net absorption: Conejo Valley (-24,400 ), Santa Clarita Valley (-21,900) and East San Fernando Valley (3,900 ). The significant tenants that moved into their space in second quarter were as follows: CRC Insurance Services, Inc. moved into 42,000 at 9200 Oakdale Ave in Chatsworth, Beach Body moved into 15,928 at 30699 Russell Ranch Rd in Westlake Village. UNEMPLOYMENT May 2015 figures from the Employment Development Department of California showed total nonfarm employment in Los Angeles County showed a recovering job market. Over the past 12 months, Los Angeles County has gained 100,500 jobs for an increase of 2.4%. This gain in employment led to the unemployment lowering to 7.6% compared to 8.0% one year ago. Year-overyear job gains were most significant in Educational and Health Services (+30,100) Trade, Transportation, and Utilities (+20,800). Manufacturing reported the largest year-over loss, dropping 2,100 jobs. VACANCY BY SUBMARKET San Fernando Valley & Ventura County Office Market NET ABSORPTION BY SUBMARKET San Fernando Valley & Ventura County Office Market 25% SUBLEASE VACANCY DIRECT VACANCY 160,000 140,000 140,700 20% 0.2% 120,000 100,000 % VACANT 15% 10% 5% 0% 1.1% 10.2% CENTRAL 0.2% EAST 14.3% 0.3% 0.7% 0.3% 14.8% 14.9% 15.4% WEST 19.8% WEST VENTURA 80,000 60,000 40,000 20,000 0 (20,000) (40,000) (24,400) (21,900) (3,900) EAST 300 CENTRAL 25,900 WEST VENTURA WEST P. 2 COLLIERS INTERNATIONAL

MARKET REPORT OFFICE SAN FERNANDO & VENTURA OFFICE OVERVIEW San Fernando Valley & Ventura County Office Market EXISTING PROPERTIES VACANCY ACTIVITY ABSORPTION CONSTRUCTION RENTS Submarket/ Class Bldgs Total Inventory Direct Sublease Total Total Prior Qtr Leasing Activity Current Qtr Leasing Activity YTD Net Absorption Current Qtr Net Absorption YTD Completions Current Qtr Under Construction Weighted Avg Asking Lease Rate A 143 18,776,709 13.5% 0.8% 14.3% 14.6% 475,757 827,592 46,000 157,500 0 120,933 $2.35 B 257 13,965,878 15.8% 0.3% 16.1% 16.6% 152,266 424,716 75,400 56,200 0 0 $2.00 C 22 874,054 20.7% 0.0% 20.7% 20.2% 3,063 7,306 (4,600) (4,500) 0 0 $1.79 WEST VENTURA SUBTOTAL 57 3,072,782 19.8% 0.2% 20.0% 20.8% 37,035 57,928 25,900 43,100 0 0 $1.97 SUBTOTAL 31 2,071,953 15.4% 0.3% 15.7% 14.6% 16,945 30,643 (21,900) (18,300) 0 0 $2.30 SUBTOTAL 105 6,553,712 14.8% 0.3% 15.1% 14.8% 184,913 314,328 (24,400) 70,800 0 120,933 $2.19 WEST SAN FERNANDO SUBTOTAL 139 14,840,973 14.9% 0.7% 15.6% 16.5% 261,315 570,624 140,700 181,200 0 0 $2.19 CENTRAL SAN FERNANDO SUBTOTAL 61 4,522,644 10.2% 1.1% 11.2% 11.2% 114,416 208,823 300 (88,200) 0 0 $2.13 EAST SAN FERNANDO SUBTOTAL 29 2,554,550 14.3% 0.2% 14.4% 14.3% 16,462 77,270 (3,900) 19,700 0 0 $2.31 SAN FERNANDO SUBTOTAL SUBTOTAL 229 21,918,167 13.9% 0.7% 14.5% 15.2% 392,193 856,717 137,100 112,700 0 0 $2.20 VENTURA SUBTOTAL SUBTOTAL 162 9,626,494 16.4% 0.3% 16.7% 16.7% 221,948 372,256 1,500 113,900 0 120,933 $2.11 MARKET TOTAL TOTAL 422 33,616,614 14.7% 0.5% 15.2% 15.6% 631,086 1,259,616 116,700 208,300 0 120,933 $2.18 RECENT TRANSACTIONS & MAJOR DEVELOPMENTS Orange County Industrial Market Q4 2012 COLLIERS INTERNATIONAL P. 3

MARKET REPORT OFFICE SAN FERNANDO & VENTURA >> A majority of leasing activity in Q2 occurred in Class A (75%) & Class B (24%) buildings. >> Two office buildings are currently under construction at 3043 & 2075 Townsgate Rd in Westlake Village. >> The market-wide asking rents at $2.18 P FSG CONSTRUCTION There were no new office developments delivered to the market during second quarter of 2015. Currently, there are two office buildings under construction totaling 120,933. The Class A office buildings are located in the Westlake Park Place - Phase II office park at 3043 & 3075 Townsgate Rd. and in Westlake Village. The 3043 Townsgate Rd development is expected to deliver in the second half of 2015 and the 60,466 building is fully pre-leased to PennyMac. The 60,467 3075 Townsgate Rd development is expected to deliver in the second half of 2016. There is approximately 630,000 of purposed office development space in San Fernando Valley & Ventura County. ACTIVITY New leasing activity during second quarter totaled 631,086 compared to 628,530 in first quarter 2015. A majority of the new leasing activity occurred in Class A (75%) and Class B (24%) buildings. The significant lease deals in second quarter were as follows: Sage Publications signed a new-direct deal for 100,439 at 2400 Conejo Spectrum Dr in Thousand Oaks, Pennymac signed a new-direct deal for 60,466 at 3043 Townsgate Rd in Westlake Village, Kaiser Permanente renewed for 36,136 at 18040 Sherman Way in West Hills and Bottlenose, Inc. signed a new-direct deal for 15,000 at 15301 Ventura Rd in Westlake Village. RENTAL RATES The weighted average asking rent for direct space remained unchanged from last quarter recording at $2.18 P FSG. A longer historical perspective direct asking recorded at $2.16 P FSG. Class A asking rents recorded at $2.35, Class B at $2.00, and Class C at $1.79 P FSG. Average asking rents were highest in the East San Fernando Valley submarket ($2.31 P FSG), and lowest in the West Ventura County submarket ($1.97 P FSG). Landlords continue to offer large consession packages in Santa Clartia Valley, North Valley and Conejo Valley as a large amount of vacant space remains on the market. In some market areas of San Fernando Valley like Enciino, vacancy is tight resulting in higher asking rental rates and smaller concession packages. WEIGHTED AVERAGE ASKING LEASE RATES BY SUBMARKET LEASING ACTIVITY BY SUBMARKET $2.40 $2.31 $2.30 300,000 261,315 $2.30 $2.19 $2.19 250,000 $ P PER MONTH (FSG) $2.20 $2.10 $2.00 $1.97 $2.13 200,000 150,000 100,000 114,416 184,913 $1.90 $1.80 WEST CENTRAL VENTURA WEST EAST 50,000 0 16,945 37,035 WEST VENTURA 16,462 EAST CENTRAL WEST P. 4 COLLIERS INTERNATIONAL

MARKET REPORT OFFICE SAN FERNANDO & VENTURA OUTLOOK The San Fernando Valley and Ventura County office market has recorded positive net absorption for the past nine quarters. Leasing activity in the office market continues to remain strong as fundamentals show improvement with declining vacancy rates. Asking rental rates are expected to remain steady and will start to climb in the coming quarters. As the economy continues to improve, lease transactions over 10,000 are expected to remain strong and complement the positive net absorption trend throughout 2015. MARKET DESCRIPTION The San Fernando Valley and Ventura County office market is a moderatesized market with 34.0 million square feet, representing 12% of office buildings 25,000 square feet and greater in the Los Angeles Basin. Leading industries in the Central and East San Fernando Valley submarkets include finance, insurance, professional services, and entertainment, and in the West San Fernando Valley and Conejo Valley submarkets, healthcare, hightech and defense sectors. In the Santa Clarita Valley and West Ventura County submarkets, firms are predominantly from the professional, financial, high-tech and insurance services sectors. HISTORICAL LEASING ACTIVITY Q2 2011 - UNEMPLOYMENT RATE United States, California & San Fernando Valley May 2015 1,800,000 8.0% 7.6% 1,600,000 1,400,000 1,200,000 1,000,000 800,000 600,000 7.0% 6.0% 5.0% 4.0% 3.0% 5.3% 6.2% 400,000 2.0% 200,000 1.0% 0 2Q11 2Q12 2Q13 2Q14 2Q15 0.0% United States California Los Angeles County RECENT TRANSACTIONS & MAJOR DEVELOPMENTS SALES ACTIVITY PROPERTY ADDRESS SIZE SALE PRICE PRICE P BUYER SELLER 225 W Hillcrest Dr, Thousand Oaks 157,508 $32,750,000 $207 P SteelWave, Inc Rising Realty Partners 6200 Canoga Ave, Woodland Hills 104,244 $15,675,000 $150 P Maxxam Enterprises Embarcadero Capital Partners LLC 21800 Burbank Blvd, Woodland Hills 59,428 $12,900,000 $217 P Warner Park Center, Inc. CW Capital Asset Management LLC 16200 Venutra Blvd, Encino 55,027 $12,000,000 $218 P Soma Encino LLC Encino Sunrise Ltd LEASING ACTIVITY PROPERTY ADDRESS LEASED LEASE TYPE BLDG TYPE LESSEE LESSOR 2400 Conejo Spectrum Dr, Thousand Oaks 100,439 Direct A Sage Publications Cusumano Real Estate Group 3043 Townsgate Rd, Westlake Village 60,466 Direct A Pennymac Searles Property Group 18040 Sherman Way, West Hills 36,136 Renewal A Kaiser Permanente Beverly wilshire Investment Co. 15301 Ventura Blvd, Sherman Oaks 15,000 Direct A Bottlenose, Inc Douglas Emmett, Inc. 3059 Townsgate Rd, Westlake Village 14,090 Direct A Sugar Food Corp Amstar MAJOR DEVELOPMENTS PROJECT DEVELOPER SIZE SUBMARKET STATUS ESTIMATED COMPLETION 3043 Townsgate Rd, Westlake Village Amstar Advisers 60,466 Conejo Valley Under Construction Q4 2015 3075 Townsgate Rd, Westlake Village Amstar Advisers 60,467 Conejo Valley Under Construction Q3 2016 COLLIERS INTERNATIONAL P. 5

MARKET REPORT OFFICE SAN FERNANDO & VENTURA DEFINITIONS OF KEY TERMS USED IN THIS REPORT Total Rentable Square Feet: Office space in buildings with 25,000 or more of speculative office space. Includes competitive space in Class A, B and C singletenant and multi-tenant buildings. Excludes non-competitive owner-occupied buildings, buildings that include 30% or greater of medical or retail space, and space that is underconstruction, under-renovation or off-market. Net Absorption: Net change in occupied square feet from one period to the next (includes the impact of change in vacant space available for sublease). Leasing Activity: Square feet leased from all known transactions completed during the quarter. Excludes lease renewals. 502 offices in 67 countries on 6 continents United States: 140 Canada: 31 Latin America: 24 Asia Pacific: 199 EMEA: 108 >> $2.3 billion in annual revenue >> 1.7 billion square feet under management >> Over 16,200 professionals Class A Space: Space that an image-conscious company would lease for its headquarters. Typically, this space has a very high level of finish and an excellent location, and commands the highest rents in the market. Class B Space: Highly functional, attractive space, but less prestigious than Class A Space, and commanding lower rental rates. Class C Space: Functional, competitive space, but with a lower level of finish and/or a less desirable location than with Class B Space, and commanding lower rental rates. Low-Rise: Buildings with a total of 4 floors or less. Mid-Rise: Buildings with a total of 5 to 13 floors. High-Rise: Buildings with 14 or more floors. Direct : Space in existing buildings that is vacant and immediately available during the quarter for direct lease, plus space that is vacant but not available for direct lease or sublease (for example, that is being held for a future commitment). Total : Space in existing buildings that is vacant and immediately available during the quarter for direct lease or for sublease, plus space that is vacant but not available for direct lease or sublease. Weighted Average Asking Rental Rates: Weighted by the total square feet available for direct lease. Data is based on Full Service Gross rents, and includes all costs associated with occupying the space, including taxes, insurance, maintenance, janitorial service and utilities. Reported on a monthly, per basis. Space Added (Net): Total square feet added during the quarter via construction completions, including renovated space returned to market, less total square feet taken off-market due to demolitions or conversions. Under Construction: Includes buildings that are in some phase of construction, beginning with foundation work and ending with the issuance of a Certificate of Occupancy. Technical Note Colliers International is continuously refining its database. The data shown in the historical tables and graphics in this report have been adjusted to take into account these changes in the database. This report has been prepared by Colliers International for general information only. Information contained herein has been obtained from sources deemed reliable and no representation is made as to the accuracy thereof. Colliers International does not guarantee, warrant or represent that the information contained in this document is correct. Any interested party should undertake their own inquiries as to the accuracy of the information. Colliers International excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damages arising there from. This report and other research materials may be found on our website at www.colliers.com/greaterlosangeles. UNITED STATES: V & Ventura County Office License No. 01908231 16830 Ventura Boulevard, Suite J Encino, CA 91436 TEL +1 818 905 5800 FAX +1 818 325 4000 FENENBOCK, KEVIN, J. Senior Vice President GOULD, JEFFREY Senior Associate, CCIM HENNESSEY, BRIAN Senior Vice President MATTESON, CAITLIN Research Director Research Services MUMPER, HANS Executive Managing Director MUMPER, JACOB Associate PUTNAM, RICK Managing Director Western Region Capital Markets SALIMIAN, SHAWN Senior Associate Accelerating success. P. 6 COLLIERS INTERNATIONAL www.colliers.com/marketname