Las Vegas Economic Review. Las Vegas Research & Forecast Report Q3 2017

Las Vegas Research & Forecast Report Q3 2017 Las Vegas Economic Review 1 Las Vegas Research & Forecast Report Q3 2017 Economic Review Colliers International

Glossary Industrial Definitions Incubator: Multi-tenant buildings without dock-high loading doors that have a parking ratio lower than 3.5/1,000 square feet and bay sizes lower than 3,500 square feet. Light Distribution: Multi- or single-tenant buildings that include dock-high loading doors and have bay sizes of less than 15,000 square feet. Light Industrial: Multi- or single-tenant buildings without dock-high loading doors that have a parking ratio lower than 3.5/1,000 square feet and, in the case of multi-tenant buildings, bay sizes of at least 3,500 square feet. Flex: Warehouse/Distribution: Multi- or single-tenant buildings without dock-high loading doors with parking ratios in excess of 3.5/1,000 square feet. Multi- or single-tenant buildings that include dock-high loading doors and have bay sizes of at least 15,000 square feet. Office Definitions Class A Office: Class B Office: Class C Office: Buildings with steel frame construction, high end exterior finish, distinctive lobbies featuring upgraded finishes, amenities including on-site security, state-of-the-art communications and data infrastructure and covered parking. Class A buildings are usually multi-story. Buildings with steel frame, reinforced concrete or concrete tilt-up construction. Class B buildings contain common bathrooms and hallways, and their lobbies may have granite and hardwood detailing. Class B buildings are often multi-story. Buildings of wood frame construction. Class C buildings are often garden-style and are built around courtyards. Retail Definitions Community Center: Neighborhood Center: Power Center: Strip Center: Retail centers anchored by supermarkets, drug stores and discount department stores. Tenants include offprice retailers selling apparel, home improvements/furnishings, toys, electronics or sporting goods. Retail centers anchored by supermarkets and drug stores. Neighborhood centers are intended for convenience shopping for day-to-day needs of consumers. Retail centers dominated by several large anchors including discount department stores, off-price stores, warehouse clubs or category killers. Power centers generally do not include much inline space. Unanchored retail centers that are 20,000 square feet in size or larger. Multifamily Definitions Class A Multifamily: Class B/C Multifamily: Buildings constructed in the last 5 years Buildings constructed more than 5 years ago General Definitions Vacant SF: Sublease SF: Net Absorption: Space in a building that is unoccupied and offered for lease by the owner of the company. Space in a building that is offered for sublease by the primary tenant. This space may or may not be occupied. Difference in occupied square footage from one period to another. 2 Las Vegas Research & Forecast Report Q3 2017 Economic Review Colliers International

Table of Contents Economic Review The Long Expansion The third quarter of 2017 in Southern Nevada saw an economy that was shifting from recovery to expansion mode. Taxable sales and employment continued to increase in a Valley poised for two professional sports franchises, a major expansion of its convention center and three potential new hospitality venues on the Strip. Industrial Review Expansion Continues Southern Nevada put in a solid 1.8 million square feet of net absorption in the third quarter of 2017, bringing yearto-date net absorption up to 5.4 million square feet. Office Review Dawn of a New Era While the surge that office demand experienced in the second quarter of 2017 did not persist into the third quarter, Southern Nevada still managed to show strong positive net absorption and decrease the office vacancy rate to 15.5 percent. Retail Review Dragging Anchor(s) As retail job growth has slowed in 2017 in Southern Nevada, retail occupancy growth has slowed with it. Multifamily Multifamily Stable and Expanding According to statistics provided by REIS, multifamily vacancy in Southern Nevada decreased by 0.1 point in the second quarter of 2017 (the most recent quarter of available data) to 3.0 percent. Medical Office Better Late than Never Southern Nevada s medical office market has now posted positive net absorption for six straight quarters, its longest streak of positive net absorption since 2005. Hospitality The Lazy Summer The trend of decreasing hospitality sales continued into the third quarter of 2017, though on a quarter-overquarter basis, there was improvement. Land Land Values Rise Southern Nevada s land market saw 54 sales in the third quarter of 2017. 4 8 14 20 27 32 37 42 This report and other research materials may be found on our website at www.colliers.com/lasvegas. This quarterly report is a research document of Colliers International Las Vegas. Questions related to information herein should be directed to the Research Department at +1 702 836 3781. Information contained herein has been obtained from sources deemed reliable and no representation is made as to the accuracy thereof. 2017 Colliers International 3 Las Vegas Research & Forecast Report Q3 2017 Economic Review Colliers International

Research & Forecast Report LAS VEGAS ECONOMIC REVIEW Q3 2017 The Long Expansion The third quarter of 2017 in Southern Nevada saw an economy that was shifting from recovery to expansion mode. Taxable sales and employment continued to increase in a Valley poised for two professional sports franchises, a major expansion of its convention center and three potential new hospitality venues on the Strip. Unemployment in the Las Vegas-Paradise MSA stood at 5.1 percent as of July 2017, down from 6.7 percent in July 2016. The national unemployment figure was 4.3 percent in July 2017, down from 4.9 percent in July 2016. While the national unemployment remains lower than the Las Vegas figure, unemployment is dropping faster in Las Vegas than nationally as the Valley gets back to doing what it does best tourism and growth. The national labor force participation rate increased to 62.9 percent in July 2017, 0.1 point higher than in July 2016. Recovery Index (Year-Over-Year) Clark County Economic Data Year Ago Current 946.8 974.3 Visitor Volume YTD (Jul 2017) 25.5 MM 25.1 MM Gaming Revenue YTD (Jul 2017) $5.7 BB $5.8 BB $19.5 BB $20.5 BB 91.3% 92.0% Jobs (1000s) (Jul 2017) Taxable Sales YTD (Jun 2017) Commercial Occupancy (Q2-17) Source: The Center for Business & Economic Research, UNLV; Colliers International

Since July 2016, total employment in Southern Nevada increased by 27,500 jobs, fewer than the 37,000 jobs that were added between July 2015 and July 2016. On a year-over-year basis, the majority of new jobs created in Southern Nevada were in construction (+9,500 jobs), professional and business services (+7,600 jobs), education and health services (+3,500 jobs), financial activities (+2,600 jobs), other services (+2,200 jobs), leisure and hospitality (+2,000 jobs) and government (+1,500 jobs). Other sectors experiencing job growth were retail (+900 jobs) and manufacturing (+300 jobs). Two sectors saw job losses over the period; transportation and warehousing (-3,800 jobs) and information (-100 jobs). The transportation and warehousing sector suffered job losses in transit and ground passenger services (-500 jobs) and taxi and limousine services (-200 jobs), which could be an artifact of Uber and Lyft drivers being classified under a different industry. That still, however, leaves 1,500 lost jobs in warehousing, which seems curious given the current record expansion in warehouse/distribution product in Southern Nevada. This may be explained by the job numbers coming from an establishment survey, which means that job gains and losses are captured in an area s existing businesses, and thus businesses new to the Valley are not yet recorded. Employment Change (May 2016 - May 2017) Southern Nevada Commercial Real Estate Recovery Index While the current construction employment of 64,700 jobs lags well behind the 111,300 construction jobs the Valley had in August of 2006, it has improved significantly since the low of 34,800 construction jobs in early 2012. Southern Nevada is seeing new construction projects in industrial, multifamily, retail, office, hospitality, sports (the Las Vegas Raiders) and infrastructure, and the new worry is that the Valley is as many as 10,000 construction workers short for the projects planned in 2018. Population growth, a key driver of Southern Nevada s economy for the past century, may be improving. According to data provided by the Nevada Department of Motor Vehicles, the average number of out-ofstate driver s licenses turned in each month was 5,130 in 2015. 2016 saw that average improve to 5,773 per month, higher than the last peak of 5,481 per month experienced in 2013. The average so far in 2017 is lower, standing at 5,468 per month from January to June, nearly the number recorded last year. Electric meter hookups saw 1.9 percent year-over-year growth in July of 2017. New home sales in the post-recession period have been slowly improving over the past three years, though they remain below the post-recession peak monthly average of 763 home sales per month in August 2013. New home sales in 2017 averaged 707 homes per month from January to July. The median price for new homes had been on the rise over the past three years, but has now retreated slightly from highs experienced at the end of 2016. Median prices for existing homes continued to rise in 2017, reaching a high of $343,372 in May 2017 before settling down to $336,351 in July 2017. The gap between the median prices for a new vs. existing home decreased between 2012 and 2016, but has been on the rise in 2017. Existing homes cost about 77 percent as much as new homes in July 2017. 5 Las Vegas Research & Forecast Report Q3 2017 Economic Review Colliers International

Visitor volume hit a new record in 2016, but volume so far in 2017 has not kept pace. In the first seven months of 2017, visitor volume was 25.1 million visitors, compared to 25.5 million in the first seven months of 2016. The difference is not stark, but it is notable. Gaming revenue, on the other hand, improved in 2017 compared to 2016. In the first four months of 2017, Clark County gaming revenue stood at $5.85 billion, compared to $5.68 billion in the same period in 2016. Commercial real estate (i.e. industrial, office and retail) investment sales volume in the first three quarters of 2017 reached $1.21 billion in 171 sales totaling 8.4 million square feet at an average price per square foot (ppsf) of $144.73. This puts 2017 on pace to be the biggest year for investment sales in a decade in terms of sales volume if it can get past the approximately $1.4 billion dollars spent in 2014 and 2015. Investment sales volume growth was negative 48.3 percent for industrial properties, 98.7 percent for office properties, 116.4 percent for single-tenant retail properties and 5 percent for shopping centers in the third quarter of 2017. Recovery Index After a weak first quarter, the recovery index saw tepid month-to-month growth between April and July of this year. The index retreated from highs recorded at the end of 2016, but on a year-over-year basis has shown solid growth in 2017 compared to 2016. Four measures of the economy in the recovery index have fully recovered to (or beyond) their 2005 levels, those being gaming revenue, employment, taxable sales and port traffic in Los Angeles (a minor component to the index). Visitor volume had passed the mark earlier this year, but retreated since then. Commercial occupancy was nearly back to 2005 levels in the third quarter of 2017. New home sales lag well behind 2005 levels, despite great improvement in 2016, and inmigration into Southern Nevada is at about 75 percent of levels seen in 2005. 6 Las Vegas Research & Forecast Report Q3 2017 Economic Review Colliers International

Economic Statistics Las Vegas Third Quarter 2017 TYPE JULY-17 APRIL-17 JULY-16 2017 AVERAGE 2016 AVERAGE QUARTERLY GROWTH ANNUAL GROWTH 2016 TO 2017 GROWTH (AVERAGE) EMPLOYMENT DATA U.S. Employment 146,615,000 146,030,000 144,448,000 146,052,571 144,324,333 0.4% 1.5% 1.2% U.S. Unemployment Rate 4.3% 4.4% 4.9% 4.5% 4.9% -2.3% -12.2% -7.8% Las Vegas MSA Employment Las Vegas MSA Unemployment Rate Las Vegas MSA Construction Employment Las Vegas MSA Hospitality Employment 973,400 973,800 938,800 969,643 939,533 0.0% 3.7% 3.2% 5.1% 4.8% 6.7% 5.0% 6.0% 6.2% -23.9% -15.7% 64,400 61,500 57,800 60,757 57,758 4.7% 11.4% 5.2% 291,100 293,100 287,900 290,386 283,883-0.7% 1.1% 2.3% HOUSING/CONSTRUCTION DATA New Home Sales 681 633 586 720 663 7.6% 16.2% 8.6% New Home Median Price $336,351 $336,534 $321,625 $335,436 $322,633-0.1% 4.6% 4.0% Existing Home Sales 3,142 2,866 2,837 2,957 2,695 9.6% 10.8% 9.7% Existing Home Median Price $260,000 $249,000 $236,000 $248,053 $229,642 4.4% 10.2% 8.0% Residential Permits 839 816 763 835 1,146 2.8% 10.0% -27.1% Case-Shiller Housing Price Index (LV) Mortgage Rate (Fixed, 30-year) 162.1 159.6 150.9 159.2 150.5 1.6% 7.4% 5.7% 3.96% 4.11% 3.56% 4.11% 3.73% -3.6% 11.3% 10.3% Construction Employment 64,700 61,500 55,200 61,538 55,317 5.2% 17.2% 11.2% HOSPITALITY DATA Visitor Volume 3,788,755 3,545,054 3,827,636 3,579,975 3,602,703 6.9% -1.0% -0.6% Gaming Revenue $848,564,000 $763,200,000 $867,204,000 $835,167,714 $809,399,667 11.2% -2.1% 3.2% Room Inventory 148,433 149,351 149,262 149,087 149,285-0.6% -0.6% -0.1% Hotel/Motel Occupancy 94.5% 90.7% 93.7% 90.3% 89.1% 4.2% 0.9% 1.3% Passengers (McCarran Int'l Airport) 4,325,676 4,062,190 4,168,391 4,015,484 3,952,970 6.5% 3.8% 1.6% Convention Attendance 469,127 505,784 351,791 579,736 525,885-7.2% 33.4% 10.2% The information contained in this report was provided by sources deemed to be reliable, however, no guarantee is made as to the accuracy or reliability. As new, corrected or updated information is obtained, it is incorporated into both current and historical data, which may invalidate comparison to previously issued reports. 7 Las Vegas Research & Forecast Report Q3 2017 Economic Review Colliers International

Research & Forecast Report LAS VEGAS INDUSTRIAL Q3 2017 Expansion Continues > > Net absorption of industrial space was greater than new completions this quarter Economic Indicators > > This decreased vacancy to a very healthy 4.9 percent > > The overall weighted average asking rate increased to $0.68 psf NNN INDUSTRIAL Employment RESIDENTIAL Permits TRANSPORTATION Taxable Sales -3.9 Southern Nevada put in a solid 1.8 million square feet of net absorption in the third quarter of 2017, bringing year-to-date net absorption up to 5.4 million square feet. Net absorption has outpaced new completions so far in 2017, with inventory increasing by 5.2 million square feet. Vacancy decreased in the third quarter to 4.9 percent, 0.4 points lower than one year ago and one quarter ago. The overall weighted average asking rate increased to $0.68 per square foot (psf) on a triple net (NNN) basis in the third quarter of 2017, a $0.03 increase from one year ago. In terms of industrial jobs, it s meet the new boss, same as the old boss. Construction is where all the action is at the moment, adding 6,600 jobs between July 2016 and July 2017, while the +1.2% +16.0% Market Indicators Relative to prior period Q3 2017 Q4 2017* Vacancy Net Absorption Completions Rental Rate *Projected Summary Statistics Las Vegas Market Q3-16 Q2-17 Q3-17 Historical Vacancy Rates and Asking Lease Rates Vacancy Rate 5.3% 5.3% 4.9% 5.8% 5.6% 5.4% 5.2% $0.70 $0.68 $0.66 $0.64 Asking Rent (PSF, NNN) $0.65 $0.64 $0.68 Net Absorption (SF) 955,325 2,086,693 1,822,879 New Completions (SF) 640,336 1,959,185 1,413,231 5.0% $0.62 4.8% $0.60 Overall Asking Rents 4.6% $0.58 Per Square Foot 4.4% 4 Q 2015 1 Q 2016 2 Q 2016 3 Q 2016 4 Q 2016 1 Q 2017 2 Q 2017 3 Q 2017 $0.56 Warehouse/Distribution $0.55 $0.52 $0.54 Light Distribution $0.64 $0.69 $0.73 Vacancy Asking Rental Rate Light Industrial $0.67 $0.70 $0.76 This year Southern Nevada s industrial market is going through one of its strongest periods of expansion, and so far the demand is strong. Incubator $0.79 $0.82 $0.83 Flex $0.83 $0.93 $0.93

wholesale and transportation & warehousing sectors showed yearover-year job losses. Although some of the job losses in transportation & warehousing were in the transit & ground passenger and taxi & limousine service sectors, the remainder of the sector still lost 2,600 jobs year-over-year. Manufacturing posted a modest year-over-year gain of 400 jobs. Unemployment in the Las Vegas-Paradise MSA stood at 5.1 percent as of July 2017, down from 6.7 percent in July 2016. From July 2016 to July 2017, total employment in Southern Nevada increased by 34,600 jobs, a 3.9 percent increase. Historical Net Absorption vs. Completions 2,500,000 2,000,000 1,500,000 1,000,000 500,000 Southern Nevada s industrial inventory expanded by 1.4 million square feet in the third quarter of 2017, bringing year-to-date 0 4 Q 2015 1 Q 2016 Net Absorption 2 Q 2016 3 Q 2016 4 Q 2016 1 Q 2017 Completions 2 Q 2017 3 Q 2017 completions up to 5.2 million square feet. An additional 2.7 million square feet of industrial space is slated for completion by the end of the year, putting the likely year-end construction total at 7.9 million square feet. This would be the largest inventory increase we have yet recorded in Southern Nevada, larger than in the boom years of 2006 and 2007. Projects that should be completed in the fourth Occupancy vs. Industrial Employment quarter of 2017 are only 28 percent pre-leased or build-to-suit. 165,000 96.0% Year-to-date net absorption in the third quarter of 2017 was 5.4 162,500 95.5% million square feet. This was enough to counterbalance the 5.2 million square feet of new inventory completed so far this year. Net absorption was positive in all seven submarkets this quarter, although the Airport and Northwest submarkets absorbed less than 160,000 157,500 155,000 95.0% 94.5% 94.0% 1,000 square feet of industrial space each. Net absorption was 152,500 93.5% highest this quarter in North Las Vegas, at 1.2 million square feet. Net absorption in properties completed in 2017 totaled 1.3 million 150,000 4 Q 2015 1 Q 2016 2 Q 2016 3 Q 2016 4 Q 2016 1 Q 2017 2 Q 2017 3 Q 2017 93.0% square feet representing 25 percent of the total net absorption for Industrial Jobs Occupancy Rate the market. Gross absorption was 11.9 million square feet in the first three quarters of 2017, higher than the gross absorption of 8.4 million square feet recorded in the first three quarters of 2016. Vacancy decreased to 4.9 percent in the third quarter of 2017, 0.4 points lower than one quarter ago and one year ago. Given the rate of inventory growth in Southern Nevada, this is a strong performance. The Valley s lowest vacancy rate was in the East Las Vegas submarket (1.5 percent) followed by West Central (3.2 percent) and Henderson (4.3 percent). The Valley s highest vacancy rate was in the Northwest submarket at 7.5 percent. JUL 2016 JUL 2017 CHANGE Construction 57,800 64,400 + 6,600 Manufacturing 22,100 22,500 + 400 Transportation & Warehousing 40,200 36,400-3,800 Wholesale 22,200 21,300-900 Source: Nevada Department of Employment, Training and Rehabilitation. 9 Las Vegas Research & Forecast Report Q3 2017 Industrial Colliers International

The industries most active in occupying industrial space in the first three quarters of 2017 were involved in the wholesale, retail, transportation and warehousing and manufacturing sectors. Local companies took about 41 percent of the leased square footage we tracked over the first three quarters of 2017. Companies headquartered in the Midwest took 19 percent of the occupied space while 11 percent came from the Southwest U.S. (including California) and companies from the Southeast states took about 8.5 percent. The weighted average asking lease rate for industrial space increased in the third quarter of 2017 to $0.68 psf NNN from last quarter s $0.64. This quarter s average rental rate was $0.03 higher than one year ago. If adjusted for inflation, the weighted average asking lease rate is $0.47 psf NNN, a $0.01 decrease from one year ago. The current asking rate, adjusted for inflation, is $0.04 lower than it was during the Valley s last economic recovery period in 2004. Units leased in the third quarter of 2017 had effective lease rates that averaged 103.3 percent of asking rates, a decrease from 2016 s average of 108.2 percent but still an indication that asking rates will continue to increase in the near term. The addition to vacant inventory of many large warehouse/distribution spaces has kept the overall weighted asking rate hovering around $0.65 psf NNN in both 2016 and 2017. At mid-year 2017, industrial investment sales volume was $225.2 million in 46 sales totaling 2,379,000 square feet. This is comparable with sales activity in 2016. Average sales price per square foot yearto-date was $94.67, a small increase from 2016 s average of $93.35. 1 Using the Consumer Price Index, All Urban Consumers, West Region, Class A Cities, 1982-1984 = 100 Industrial Development Schedule PROJECT TYPE STATUS SUBMARKET SIZE PRE-LEASING 4TH QUARTER 2017 2,723,704 SF 28% Henderson Commerce Center II Bldg U Warehouse/Distribution UC Henderson 50,400 SF 0% Henderson Commerce Center II Bldg V Warehouse/Distribution UC Henderson 54,000 SF 0% Henderson Commerce Center II Bldg W Warehouse/Distribution UC Henderson 81,600 SF 0% Henderson Interchange Center Bldg 1 Warehouse/Distribution UC Henderson 130,990 SF 100% Henderson Interchange Center Bldg 2 Warehouse/Distribution UC Henderson 197,120 SF 0% Lincoln Business Center Warehouse/Distribution UC North Las Vegas 338,520 SF 0% LogistiCenter at Las Vegas Blvd Warehouse/Distribution UC North Las Vegas 546,480 SF 0% Northgate Distribution Center Bldg 5 Warehouse/Distribution UC North Las Vegas 191,026 SF 0% Prologis I-15 Speedway Logistics Center Bldg 2 Warehouse/Distribution UC North Las Vegas 621,857 SF 100% South15 Airport Center Warehouse/Distribution UC Henderson 482,300 SF 0% South Jones Industrial Park Light Industrial UC Southwest 29,411 SF 0% 1ST QUARTER 2018 130,000 SF 100% Losee Business Center 3 Warehouse/Distribution UC North Las Vegas 80,000 SF BTS Roberts Communications Complex Warehouse/Distribution UC Henderson 50,000 SF BTS 2ND QUARTER 2018 1,722,255 SF 0% Blue Diamond Business Center Bldg 6 Warehouse/Distribution PC Southwest 322,560 SF 0% Craig @ Walnut Warehouse/Distribution PC North Las Vegas 122,495 SF 0% Van Trust II Bldg 1 Warehouse/Distribution PC North Las Vegas 550,160 SF 0% Van Trust II Bldg 2 Warehouse/Distribution PC North Las Vegas 727,040 SF 0% 2018 3,057,385 SF 18% 401 Eastgate Warehouse/Distribution UC Henderson 156,694 SF BTS 5785 N Hollywood Blvd Warehouse/Distribution PC North Las Vegas 36,000 SF BTS AirParc South Warehouse/Distribution PC Henderson 181,430 SF 0% AirParc South Light Distribution PC Henderson 30,600 SF 0% Centra Craig Corporate Center Warehouse/Distribution PC North Las Vegas 155,790 SF 0% Escondido Airport Park Light Industrial PC Airport 30,897 SF 0% Lamb Industrial Light Distribution PC North Las Vegas 121,890 SF 0% Northgate Distribution Center Bldg 9 Warehouse/Distribution PC North Las Vegas 690,096 SF 0% Prologis I-15 Speedway Logistics Center Bldg 3 Warehouse/Distribution PC North Las Vegas 633,120 SF 0% Prologis I-15 Speedway Logistics Center Bldg 4 Warehouse/Distribution PC North Las Vegas 367,060 SF 0% Prologis Las Vegas Corporate Center Bldg 9 Warehouse/Distribution UC North Las Vegas 130,515 SF 0% Prologis Las Vegas Corporate Center Bldg 14 Warehouse/Distribution UC North Las Vegas 131,750 SF 0% South15 Airport Center Bldg C Warehouse/Distribution PC Henderson 189,000 SF 0% South15 Airport Center Bldg D Warehouse/Distribution PC Henderson 91,000 SF 0% South15 Airport Center Bldg E Warehouse/Distribution PC Henderson 200,000 SF 0% South15 Airport Center Bldg F Warehouse/Distribution PC Henderson 100,800 SF 0% South15 Industrial Park Bldg 1 Warehouse/Distribution PC Henderson 86,880 SF 0% South15 Industrial Park Bldg 2 Warehouse/Distribution PC Henderson 73,840 SF 0% Speedway Commerce Center West A Warehouse/Distribution PC North Las Vegas 390,000 SF 0% Speedway Commerce Center West B Warehouse/Distribution PC North Las Vegas 332,800 SF 0% Switch SuperNAP Warehouse/Distribution PC Southwest 500,000 SF BTS 10 Las Vegas Research & Forecast Report Q3 2017 Industrial Colliers International

The average cap rate was 7.3 percent, up from 7.2 percent last year. Southern Nevada s industrial market had 725,500 square feet of product marketed for sale as investments at mid-year, with an average asking price of $143.42 psf, and an average cap rate of 7.4 percent. Year-to-date, net absorption is lagging approximately 500,000 square feet behind new completions in 2017, increasing warehouse/ distribution s vacancy rate to 5.0 percent. This is 0.8 points higher than one year ago, but still a very healthy vacancy. We think warehouse/ distribution vacancy could land somewhere around 6.5 percent by year s end depending on the leasing activity in product to be completed next quarter. A dramatic increase in vacancy could impact the pace of warehouse development in 2018. Southern Nevada s light distribution sector, while beset by the same job woes as warehouse/distribution, fared better than warehouse/ distribution in the third quarter of 2017. The first light distribution buildings completed this year expanded inventory by 133,000 square feet, and vacancy edged up 0.1 point to 4.6 percent as a result. The reception of the new buildings in the Airport submarket could set the scene for light distribution s performance in 2018. The light industrial sector saw some inventory growth in the third quarter, adding 54,000 square feet in the Airport submarket. The new construction opened the third quarter 17 percent occupied, but with several deals slated to close in the fourth quarter. Net absorption of light industrial space was negative in the Airport, North Las Vegas, Northwest and Southwest submarkets in the third quarter of 2017. Gross absorption of light industrial space was slightly below par, although vacancy remained a very healthy 3.9 percent. The incubator market managed a strong 98,949 square feet of net absorption this quarter, almost doubling its net absorption from last quarter. This took incubator vacancy down to 6.3 percent. The flex market suffered negative net absorption this quarter, reversing last quarter s positive net absorption. This was the second quarter this year of negative net absorption for the flex market. This year Southern Nevada s industrial market is going through one of its strongest periods of expansion, and so far the demand is strong. Vacancy is still lower this year than it was in 2016, indicating that the product being constructed is just what the market ordered. Industrial construction will probably be lighter in 2018, with only 6.1 million square feet of new space currently under construction or planned to begin construction in the next twelve months. Should this space perform as well as the space constructed already in 2017 Southern Nevada s vacancy rate will remain low and its asking rates will remain stable or increasing in 2018. Southern Nevada put in a solid 1.7 million square feet of net absorption in the third quarter of 2017, bringing year-to-date net absorption up to 5.4 million square feet. Investment Sales 2013 2014 2015 2016 2017 YTD No. Sales 58 100 52 71 47 Square Feet Sold 3,526,000 5,832,000 2,759,000 3,309,000 2,493,000 Sales Volume $189.1 MM $496.2 MM $248.8 MM $308.9 MM $239.0 MM Average Price/SF $53.65 $85.08 $90.20 $93.35 $95.86 Average Cap Rate 7.0% 7.3% 7.1% 7.2% 7.3% Average Sale Size (SF) 61,000 58,000 53,000 47,000 53,000 *Using the Consumer Price Index, All Urban Consumers, West Region, Class A Cities, 1982-1984 = 100 11 Las Vegas Research & Forecast Report Q3 2017 Industrial Colliers International

NORTHWEST 95 215 NORTH LAS VEGAS 15 Significant Industrial Sale Activity ProLogis Park LVCC 1,059,000 SF - $67,580,000 $63.00/SF August 2017 Warehouse/Distribution WEST CENTRAL EAST LAS VEGAS Souvenir World 28,000 SF - $5,878,000 $210.00/SF July 2017 Light Industrial 95 Familian Business Center 35,000 SF - $4,650,000 $133.00/SF September 2017 Warehouse/Distribution SOUTHWEST 215 AIRPORT HENDERSON Valley Freeway Centre III 114,000 SF - $13,780,000 $121.00/SF July 2017 Flex Cameron Office & Warehouse 50,000 SF - $4,150,000 $82.00/SF July 2017 Light Industrial Lease Activity PROPERTY NAME LEASE DATE LEASE TERM SIZE EFFECTIVE RATE TYPE Lone Mountain Corporate Center Jul 2017 63 months 129,000 SF $0.40 NNN Warehouse/Distribution 101 North Mojave Road Jul 2017 60 months 21,000 SF $1.37 NNN Light Industrial Nellis Industrial Center Jul 2017 60 months 15,000 SF $0.49 NNN Light Distribution 4675 Teco Aug 2017 87 months 11,000 SF $1.35 NNN Flex Decatur Bell Commerce Center Sep 2017 64 months 5,000 SF $0.93 NNN Incubator 12 Las Vegas Research & Forecast Report Q3 2017 Industrial Colliers International

Market Comparisons - Las Vegas Industrial Market TYPE TOTAL INVENTORY SF DIRECT VACANT SF DIRECT VACANCY RATE SUBLEASE VACANCY SF TOTAL VACANT SF VACANCY RATE CURRENT QUARTER VACANCY RATE PRIOR QUARTER NET ABSORPTION CURRENT QTR SF NET ABSORPTION YTD SF COMPLETIONS CURRENT QTR SF COMPLETIONS YTD SF UNDER CONSTRUCTION SF PLANNED CONSTRUCTION SF WEIGHTED AVG ASKING RENTAL RATE AIRPORT SUBMARKET WH 5,859,225 174,182 3.0% - 174,182 3.0% 2.6% (24,270) 170,940 - - - - $0.84 LD 3,387,597 338,574 10.0% 28,812 367,386 10.8% 7.6% 23,857 (39,813) 133,077 133,077 - - $0.79 LI 3,008,036 189,806 6.3% - 189,806 6.3% 4.0% (16,915) 9,628 54,000 54,000 54,000 30,897 $0.97 INC 1,500,100 127,374 8.5% - 127,374 8.5% 11.6% 44,996 57,048 - - - - $1.20 FLX 1,509,068 157,497 10.4% - 157,497 10.4% 10.0% (18,421) 35,538 - - - - $0.97 Total 15,264,026 987,433 6.5% 28,812 1,016,245 6.7% 5.6% 9,247 233,341 187,077 187,077 54,000 30,897 $0.92 EAST LAS VEGAS SUBMARKET WH 1,115,454-0.0% - - 0.0% 1.0% 11,000 25,183 - - - - $- LD 532,163-0.0% 26,492 26,492 5.0% 6.8% 36,144 75,888 - - - - $- LI 1,798,513 30,278 1.7% - 30,278 1.7% 2.8% 20,700 56,924 - - - - $0.57 INC 280,959 22,090 7.9% - 22,090 7.9% 7.9% (6) 5,074 - - - - $0.69 FLX 233,692 6,592 2.8% - 6,592 2.8% 1.5% (3,186) 508 - - - - $0.65 Total 3,960,781 58,960 1.5% 26,492 85,452 2.2% 3.1% 64,652 163,577 - - - - $0.62 HENDERSON SUBMARKET WH 8,184,904 453,979 5.5% 27,270 481,249 5.9% 7.0% 121,071 440,946-240,000 1,153,104 922,950 $0.55 LD 1,685,746 46,729 2.8% - 46,729 2.8% 4.0% 20,248 52,041 - - 186,000 30,600 $0.58 LI 3,650,980 94,078 2.6% - 94,078 2.6% 2.7% 6,313 41,074 - - - - $0.74 INC 496,625 31,191 6.3% - 31,191 6.3% 4.9% (6,745) (8,523) - - - - $0.65 FLX 1,380,046 80,817 5.9% - 80,817 5.9% 5.8% (661) (12,109) - - - - $1.04 Total 15,398,301 706,794 4.6% 27,270 734,064 4.8% 5.5% 140,226 513,429-240,000 1,339,104 953,550 $0.64 NORTH LAS VEGAS SUBMARKET WH 26,263,029 1,242,806 4.7% 0 1,242,806 4.7% 6.1% 1,216,407 3,414,267 930,654 3,845,741 2,040,148 4,004,561 $0.44 LD 5,047,434 148,715 2.9% 24,647 173,362 3.4% 4.3% 58,170 184,957 - - - 121,890 $0.48 LI 9,089,442 410,842 4.5% 0 410,842 4.5% 4.5% -4,507 34,281 - - - - $0.61 INC 724,573 55,047 7.6% 0 55,047 7.6% 10.2% 19,219 57,504 - - - 87,900 $0.61 FLX 796,333 102,067 12.8% 1,816 103,883 13.0% 10.5% -22,948 (8,020) - - - - $0.91 Total 41,920,811 1,959,477 4.7% 26,463 1,985,940 4.7% 5.7% 1,266,341 3,682,989 930,654 3,845,741 2,040,148 4,214,351 $0.51 NORTHWEST SUBMARKET WH 224,906-0.0% - - 0.0% 0.0% - - - - - - $- LD 50,000 11,097 22.2% - 11,097 22.2% 22.2% - (11,097) - - - - $0.85 LI 341,430 16,628 4.9% - 16,628 4.9% 4.2% (2,241) 1,007 - - - - $0.71 INC 99,427 17,444 17.5% - 17,444 17.5% 17.5% - (319) - - - - $0.78 FLX 740,230 63,871 8.6% - 63,871 8.6% 9.0% 2,936 1,864 - - - - $0.94 Total 1,455,993 109,040 7.5% - 109,040 7.5% 7.5% 695 (8,545) - - - - $0.87 SOUTHWEST SUBMARKET WH 15,394,213 1,111,943 7.2% - 1,111,943 7.2% 7.5% 300,536 397,829 295,500 882,438-930,000 $0.61 LD 7,344,599 294,211 4.0% 15,116 309,327 4.2% 4.0% (78,924) (3,322) - - - - $0.86 LI 10,505,225 426,517 4.1% 5,000 431,517 4.1% 3.7% (45,963) 106,435 - - 29,411 - $0.78 INC 2,353,108 108,701 4.6% 6,352 115,053 4.9% 6.2% 38,102 27,825 - - - - $0.73 FLX 1,687,035 181,353 10.7% - 181,353 10.7% 11.2% 7,255 (136) - - - - $0.86 Total 37,284,180 2,122,725 5.7% 26,468 2,149,193 5.8% 5.8% 221,006 528,631 295,500 882,438 29,411 930,000 $0.71 WEST CENTRAL SUBMARKET WH 2,253,774-0.0% - - 0.0% 0.0% - 17,283 - - - - $- LD 999,141 42,770 4.3% - 42,770 4.3% 7.9% 36,150 44,767 - - - - $0.42 LI 7,783,086 231,254 3.0% 10,300 241,554 3.1% 4.0% 77,319 250,238 - - - - $0.83 INC 2,511,825 142,548 5.7% - 142,548 5.7% 5.8% 3,383 16,105 - - - - $0.74 FLX 161,527 15,419 9.5% - 15,419 9.5% 11.9% 3,860 (4,132) - - - - $0.81 Total 13,709,353 431,991 3.2% 10,300 442,291 3.2% 4.0% 120,712 324,261 - - - - $0.76 MARKET TOTAL WH 59,295,505 2,982,910 5.0% 27,270 3,010,180 5.1% 5.9% 1,624,744 4,466,448 1,226,154 4,968,179 3,193,252 5,857,511 $0.54 LD 19,046,680 882,096 4.6% 95,067 977,163 5.1% 5.0% 95,645 303,421 133,077 133,077 186,000 152,490 $0.73 LI 36,176,712 1,399,403 3.9% 15,300 1,414,703 3.9% 3.8% 34,706 499,587 54,000 54,000 83,411 30,897 $0.76 INC 7,966,617 504,395 6.3% 6,352 510,747 6.4% 7.6% 98,949 154,714 - - - 87,900 $0.83 FLX 6,507,931 607,616 9.3% 1,816 609,432 9.4% 9.1% (31,165) 13,513 - - - - $0.93 Total 128,993,445 6,376,420 4.9% 145,805 6,522,225 5.1% 5.4% 1,822,879 5,437,683 1,413,231 5,155,256 3,462,663 6,128,798 $0.68 QUARTERLY COMPARISON AND TOTALS Q3-17 128,993,445 6,376,420 4.9% 145,805 6,522,225 5.1% 5.4% 1,822,879 5,437,683 1,413,231 5,155,256 3,462,663 6,128,798 $0.68 Q2-17 127,580,214 6,786,068 5.3% 152,191 6,938,259 5.4% 5.7% 2,086,693 3,614,804 1,959,185 3,742,025 4,136,935 4,203,998 $0.64 Q1-17 125,621,029 6,913,576 5.5% 266,170 7,179,746 5.7% 5.6% 1,528,111 1,528,111 1,782,840 1,782,840 3,952,298 6,739,906 $0.65 Q4-16 123,838,189 6,658,847 5.4% 335,896 6,994,743 5.6% 5.6% 804,521 3,416,867 962,700 3,369,037 4,472,122 5,980,699 $0.67 Q3-16 122,875,489 6,500,668 5.3% 372,085 6,872,753 5.6% 6.0% 955,325 2,612,346 640,336 2,406,337 3,868,338 5,799,971 $0.65 Q2-16 122,235,153 6,815,657 5.6% 514,396 7,330,053 6.0% 6.0% 778,135 1,657,021 661,726 1,766,001 1,940,708 5,764,758 $0.62 Q1-16 121,573,427 6,932,066 5.7% 380,928 7,312,994 6.0% 5.7% 878,886 878,886 1,104,275 1,104,275 1,446,539 5,155,620 $0.65 WH = Warehouse LD = Light Distribution LI = Light Industrial INC = Incubator FLX = Flex 13 Las Vegas Research & Forecast Report Q3 2017 Industrial Colliers International

Research & Forecast Report LAS VEGAS OFFICE Q3 2017 Dawn of a New Era > > The third quarter posted positive net absorption, but did not match the second quarter s performance > > Vacancy was below 16 percent for the first time since 2008 > > Asking rates have seen little movement since hitting $2.00 psf FSG last year While the surge that office demand experienced in the second quarter of 2017 did not persist into the third quarter, Southern Nevada still managed to show strong positive net absorption and decrease the office vacancy rate to 15.5 percent. This is the first time in nine years that office vacancy has been below 16 percent. Asking rents dropped to $2.01 per square foot (psf) on a Full Service Gross (FSG) basis. Southern Nevada s office job market improved in July 2017 (the latest month of data available) compared with July 2016. The Valley added 24,600 jobs over the past twelve months, with the largest gain coming from the professional and business services sector (+16,400 jobs). We estimate approximately 12,700 jobs added over the past twelve months fed directly into professional office space. Over the same period, net absorption totaled 981,567 square feet. This represented 77 square feet Historical Vacancy Rates and Asking Lease Rates Economic Indicators Office Employment +6.4% Market Indicators Office SF/Job +2.7% Q3 2017 Sublease Vacancy +4.1 Relative to prior period Q3 2017 Q4 2017* VACANCY NET ABSORPTION COMPLETIONS RENTAL RATE *Projected Summary Statistics Las Vegas Market Q3-16 Q2-17 Q3-17 Vacancy Rate 17.0% 16.1% 15.5% 18.5% 18.0% $2.06 $2.04 Asking Rent (PSF, NNN) $2.01 $2.02 $2.01 17.5% 17.0% $2.02 $2.00 Net Absorption (SF) 216,559 545,955 267,963 16.5% 16.0% $1.98 $1.96 New Completions (SF) 0 184,000 10,000 15.5% $1.94 15.0% 14.5% 14.0% 3 Q 2015 4 Q 2015 1 Q 2016 2 Q 2016 3 Q 2016 4 Q 2016 1 Q 2017 2 Q 2017 3 Q 2017 $1.92 $1.90 $1.88 Overall Asking Rents Per Square Foot Q3-16 Q2-17 Q3-17 Class A $2.67 $2.70 $2.70 Vacancy Asking Rental Rate As we approach 2018, the office market s recovery may be on the verge of entering a new phase. Class B $2.04 $2.03 $2.00 Class C $1.68 $1.71 $1.71

of occupied space per new office job. As a comparison, during the 2005-2007 boom, Southern Nevada businesses occupied approximately 534 square feet per office job; an illustration of the unsustainability of the boom and an explanation for the seemingly slow recovery that has occurred over the past few years in the office market. Unemployment in the Las Vegas- Paradise MSA stood at 5.1 percent as of July 2017, down from 6.7 percent in July 2016. From July 2016 to July 2017, total employment in Southern Nevada increased by 34,600 jobs, a 3.9 percent increase. Historical Net Absorption vs. Completions 600,000 500,000 400,000 300,000 200,000 Southern Nevada s office market welcomed 10,000 square feet of new 100,000 development this quarter at Sunset Hills Plaza in the Southwest submarket. The amount of office space in the construction pipeline increased this quarter; 214,364 square feet should be completed by the end of 2017, and another 893,858 square feet were planned for completion in 2018. While it is unlikely that all of this planned office space will be delivered in 2018, almost 500,000 square feet is in some stage of construction and very likely to be completed next year. Of note are the several build-to-suit (BTS) projects now under development in the Valley. The industrial market saw a burst of build-to-suit construction and strong job gains before the current boom in speculative construction started. Occupancy vs. Office Employment 140,000 135,000 0 3 Q 2015 4 Q 2015 1 Q 2016 Net Absorption 2 Q 2016 3 Q 2016 4 Q 2016 1 Q 2017 Completions 2 Q 2017 3 Q 2017 85.0% 84.0% Southern Nevada s office market had 267,963 square feet of net absorption in the third quarter of 2017. This was lower than last quarter, when occupied inventory surged by more than 500,000 square feet, but was higher than one year ago. This quarter s net absorption continued an eleven quarter trend of positive net absorption. Net absorption was highest this quarter in the Northwest submarket (95,851 square feet), followed by Henderson (64,270 square feet) and Airport (46,316 square feet). This was the second straight quarter in which the Henderson and the Airport submarkets posted strong net absorption. Only the West Central submarket posted negative net absorption this quarter. Demand for office space over the past two quarters came primarily from financial activities, professional and business services and engineering and management firms. In the lease comps to which we had access, local tenants took 46 percent of the leased space, tenants from the Southwest U.S. (including California) 30.2 percent and tenants from the Northeastern states 13.6 percent. 130,000 125,000 120,000 115,000 110,000 3 Q 2015 4 Q 2015 1 Q 2016 Office Jobs 2 Q 2016 JULY 2016 JULY 2017 CHANGE Information 10,100 10,900 + 800 Financial Activities 45,600 50,900 + 5,300 Professional & Business Services 125,500 141,900 + 16,400 Health Care 63,100 65,200 + 2,100 3 Q 2016 4 Q 2016 1 Q 2017 2 Q 2017 Occupancy Rate 3 Q 2017 83.0% 82.0% 81.0% 80.0% 79.0% Source: Nevada Department of Employment, Training and Rehabilitation Vacancy by Size Range Q2-2017 Q3-2017 DIFFERENCE Size Range Units Total SF Units Total SF Units Total SF 0 to 2,500 sf 1,007 2,166,480 994 2,070,213-13 - 96,267 2,501 to 5,000 sf 461 2,004,213 472 1,986,048-11 - 18,165 5,001 to 10,000 sf 189 1,569,470 180 1,368,276-9 - 201,194 10,001 to 20,000 sf 80 1,178,714 76 1,137,639-4 - 41,075 20,000 sf + 29 991,318 27 942,238-2 - 49,080 15 Las Vegas Research & Forecast Report Q3 2017 Office Colliers International

Investment Sales Activity 2013 2014 2015 2016 2017 YTD No. Sales 85 67 59 46 52 Square Footage 3,416,000 2,302,000 1,712,000 1,470,000 1,928,516 Sales Volume $522.2 MM $250.0 MM $284.3 MM $201.1 MM $331.7 MM Average Price/SF $152.84 $108.59 $166.06 $136.79 $172.01 Average Cap Rate 7.6% 7.7% 7.5% 7.7% 7.6% Average Sale Size (SF) 40,000 34,000 29,000 32,000 37,100 * Note Date in this graph no longer includes medical office Southern Nevada currently averages 280 square feet of occupied office space per office job. This number peaked in 2010 at approximately 347 square feet per job, and has been sliding ever since. The last time this statistic was this low was in 2006, and it is worth noting that it has been lower in the past and therefore could continue to fall. The trend behind this decrease in occupied square footage per office job is due to smarter use of office space by office users who are utilizing concepts like shared space or hoteling to maximize their efficiency. The office vacancy rate in Southern Nevada in the third quarter of 2017 was 15.5 percent, a decrease from last quarter s rate of 16.1 percent and from last year s 17.0 percent vacancy. Office vacancy decreased in seven of the Valley s eight submarkets this quarter, with the Henderson submarket experiencing the largest decrease (1.2 percentage points), followed by Northwest (1.1 points) and the Airport and North Las Vegas submarkets (0.7 points). Vacancy increased by 0.1 point in the West Central submarket. While the surge that office demand experienced in the second quarter of 2017 did not persist into the third quarter, Southern Nevada still managed to show strong positive net absorption and decrease the office vacancy rate to 15.5 percent. Office Development Schedule PROJECT CLASS SUBMARKET SIZE PRE-LEASING Q4-2017 214,364 SF 72% Credit One Headquarters B Southwest 152,000 SF BTS St Rose Coronado Center Bldg 1 B Henderson 62,364 SF 4% Q1-2018 40,646 SF 100% GLVAR HQ B Southwest 40,646 SF BTS 2018 853,212 SF 46% Aristocrat Technologies HQ B Northwest 180,000 SF BTS Cadence Bldg 2 C Henderson 15,000 SF 0% Cadence Bldg 3 C Henderson 15,000 SF 0% Canyon Ridge Business Park C Southwest 65,000 SF 0% Centennial Hills Center B Northwest 87,000 SF 0% Centennial Hills Center C Northwest 37,100 SF 0% Pace Plaza B Southwest 42,000 SF BTS Pavilion Center @ Griffith Park A Northwest 152,300 SF 0% Roberts Communication Complex B Henderson 40,500 SF BTS Seven Hills Plaza Bldg D B Henderson 50,000 SF 0% The Square C Southwest 36.722 SF 0% University Gateway B East Las Vegas 21,885 SF 100% UNLV Harry Reid Tech Park A Southwest 110,705 SF BTS 16 Las Vegas Research & Forecast Report Q3 2017 Office Colliers International

When examined by the size range of vacant units (including vacant units for sublease), demand this quarter was highest for spaces between 5,001 and 10,000 square feet, followed by spaces under 2,500 square feet and spaces over 20,000 square feet. All size ranges saw the amount of vacant space, and the number of vacant units, decrease in the third quarter of 2017 compared to the previous quarter. The weighted average asking rental rate for office space in Southern Nevada decreased by $0.01 to $2.01 per square foot (psf) on a full service gross (FSG) basis in the third quarter of 2017. The Valley s asking rate has hovered between $2.01 and $2.02 for the past five quarters after showing strong increases in 2015 and early 2016. The Southwest remained the most expensive submarket in the Valley this quarter, with an asking rental rate of $2.31 psf FSG, ahead of Downtown s $2.18 psf FSG. The Valley s lowest average asking rate is in the North Las Vegas submarket, at $1.58 psf FSG. Office space available for sublease increased in the third quarter of 2017 to 413,018 square feet from last quarter s total of 374,524 square feet. Available sublease space can be a canary in the coal mine for the office market, pointing to future additions of directly available space to the market. Year-to-date, the office market posted sales volume of $331.7 million in 52 sales totaling 1,928,516 square feet with an average price per square foot of $172.01 and an average cap rate of 7.6 percent. The average investment sales price in 2016 was just $136.79 due to the sale of a large building in the Downtown submarket. 2017 s average sales price is more in line with 2015, but also shows growth compared to that year. Sales volume so far in 2017 is higher than in the past three years, although there were more sales in 2014 and 2015. In the third quarter of 2017 there were 1.9 million square feet of office available for sale as an investment with an average asking price of $220.50 psf and an average cap rate of 6.9 percent. With both asking prices and actual sales prices on the rise, we continued to see buyers move from the bargain bin mindset of the immediate postrecession years to a mindset that finds Southern Nevada s office market healthier and more compelling. The office market in Southern Nevada has been steadily improving for almost three years. The improvements have been neither flashy nor quick, but they have happened. As we approach 2018, the office market s recovery may be on the verge of entering a new phase. Office job gains have been strong for the past few quarters and several build-to-suit office projects are now taking shape in the Valley. These two things preceded the current renaissance Southern Nevada is experiencing in the industrial market, and perhaps a similar renaissance is in the works for the long suffering office market. 17 Las Vegas Research & Forecast Report Q3 2017 Office Colliers International

215 NORTH LAS VEGAS Significant Office Sale Activity Sienna Gardens Business Park 95 67,400 SF - $21,105,000 $313.00/SF July 2017 NORTHWEST 15 Class B Tech Center Plaza SUMMERLIN WEST CENTRAL DOWN TOWN 95 EAST LAS VEGAS 57,900 SF - $4,750,000 $82.00/SF July 2017 Class C Quail Park V 47,300 SF - $5,100,000 $108.00/SF July 2017 Class C 215 AIRPORT Green Valley Corporate Center 54,200 SF - $13,150,000 $243.00/SF SOUTHWEST HENDERSON August 2017 Class B 3333 E Serene Avenue 32,000 SF - $5,940,000 $186.00/SF July 2017 Class B Lease Activity Property Name Lease Date Lease Term Size Lease Rate Type Gibson Tech Center Sep 2017 82 months 30,000 SF $1.43 NNN Class B Patrick Commons Jul 2017 65 months 4,400 SF $1.64 FSG Class C Flamingo Grand Plaza Aug 2017 36 months 3,700 SF $1.20 FSG Class B Scottsdale Plaza Jul 2017 65 months 3,000 SF $1.29 NNN Class C Town Square Jul 2017 51 months 2,800 SF $2.38 MG Class A 18 Las Vegas Research & Forecast Report Q3 2017 Office Colliers International

Market Comparisons - Las Vegas Office Market CLASS TOTAL INVENTORY SF DIRECT VACANT SF DIRECT VACANCY RATE SUBLEASE VACANT SF VACANCY RATE TOTAL VACANT CURRENT SF QUARTER VACANCY RATE PRIOR QUARTER NET ABSORPTION CURRENT QTR SF NET ABSORPTION YTD SF COMPLETIONS CURRENT QTR SF COMPLETIONS YTD SF UNDER CONSTRUCTION SF PLANNED CONSTRUCTION SF WEIGHTED AVG ASKING RENTAL RATE AIRPORT SUBMARKET A 729,174 197,110 27.0% - 197,110 27.0% 28.6% 11,338 48,539 - - - - $2.82 B 2,406,202 282,544 11.7% 11,126 293,670 12.2% 12.3% 1,938 62,379 - - - - $1.94 C 3,219,127 516,962 16.1% 25,123 542,085 16.8% 17.9% 33,040 20,243 - - - - $1.77 Total 6,354,503 996,616 15.7% 36,249 1,032,865 16.3% 17.0% 46,316 131,161 - - - - $2.03 DOWNTOWN SUBMARKET A 1,232,341 249,383 20.2% 9,840 259,223 21.0% 18.3% (26,329) (19,211) - - - - $2.69 B 2,355,207 263,298 11.2% 2,353 265,651 11.3% 11.2% (62) (21,402) - - - - $2.02 C 1,444,819 164,019 11.4% - 164,019 11.4% 13.6% 31,859 7,184 - - - - $1.65 Total 5,032,367 676,700 13.4% 12,193 688,893 13.7% 13.6% 5,468 (33,429) - - - - $2.18 EAST LAS VEGAS SUBMARKET A 1,353,083 282,412 20.9% 33,952 316,364 23.4% 23.2% (5,776) 11,652 - - - - $2.92 B 1,542,404 384,235 24.9% 3,355 387,590 25.1% 27.0% 32,469 64,253 - - - 21,885 $1.39 C 2,591,966 569,507 22.0% 6,363 575,870 22.2% 21.8% (11,721) (47,044) - - - - $1.41 Total 5,487,453 1,236,154 22.5% 43,670 1,279,824 23.3% 23.6% 14,972 28,861 - - - 21,885 $1.75 HENDERSON SUBMARKET A 583,905 210,009 36.0% 10,954 220,963 37.8% 39.4% 8,906 5,164 - - - - $2.69 B 2,584,971 375,588 14.5% 42,447 418,035 16.2% 16.1% 32,029 36,018 - - 102,864 50,000 $2.06 C 2,162,624 298,581 13.8% 7,051 305,632 14.1% 15.3% 23,335 64,864 - - - 30,000 $1.77 Total 5,331,500 884,178 16.6% 60,452 944,630 17.7% 18.3% 64,270 106,046 - - 102,864 80,000 $2.11 NORTH LAS VEGAS SUBMARKET A - - n/a 46,234 46,234 n/a n/a - - - - - - $- B 245,696 46,546 18.9% - 46,546 18.9% 18.9% - (13,396) - - - - $1.78 C 543,389 87,421 16.1% 3,665 91,086 16.8% 17.1% 5,713 19,132 - - - - $1.47 Total 789,085 133,967 17.0% 49,899 183,866 23.3% 17.7% 5,713 5,736 - - - - $1.58 NORTHWEST SUBMARKET A 1,960,287 344,672 17.6% - 344,672 17.6% 21.8% 35,835 147,100 - - 152,300 - $2.47 B 3,546,131 504,226 14.2% - 504,226 14.2% 15.1% 32,372 86,213 - - - 267,000 $2.14 C 3,369,909 354,296 10.5% - 354,296 10.5% 11.5% 27,644 12,604 - - - 37,100 $1.83 Total 8,876,327 1,203,194 13.6% - 1,203,194 13.6% 15.2% 95,851 245,917 - - 152,300 304,100 $2.14 SOUTHWEST SUBMARKET A 597,112 31,738 5.3% - 31,738 5.3% 5.8% (4,892) (447) - - - 248,361 $2.62 B 3,177,261 413,582 13.0% 28,851 442,433 13.9% 14.2% 21,279 323,197-184,000 192,646 42,000 $2.46 C 3,529,644 444,148 12.6% - 444,148 12.6% 13.0% 23,897 19,773 10,000 10,000-101,722 $2.15 Total 7,304,017 889,468 12.2% 28,851 918,319 12.6% 12.9% 40,284 342,523 10,000 194,000 192,646 392,083 $2.31 WEST CENTRAL SUBMARKET A 157,624 18,803 11.9% 2,421 21,224 13.5% 13.5% - - - - - - $2.46 B 1,922,915 400,404 20.8% - 400,404 20.8% 20.6% (4,849) 53,781 - - - - $1.90 C 3,023,535 418,631 13.8% 2,333 420,964 13.9% 14.1% (62) 60,801 - - - - $1.53 Total 5,104,074 837,838 16.4% 4,754 842,592 16.5% 16.5% (4,911) 114,582 - - - - $1.73 MARKET TOTAL A 6,613,526 1,334,127 20.2% 103,401 1,437,528 21.7% 22.1% 19,082 192,797 - - 152,300 248,361 $2.70 B 17,780,787 2,670,423 15.0% 88,132 2,758,555 15.5% 15.9% 115,176 591,043-184,000 295,510 380,885 $2.00 C 19,885,013 2,853,565 14.4% 44,535 2,898,100 14.6% 15.3% 133,705 157,557 10,000 10,000-168,822 $1.71 Total 44,279,326 6,858,115 15.5% 236,068 7,094,183 16.0% 16.5% 267,963 941,397 10,000 194,000 447,810 798,068 $2.01 QUARTERLY COMPARISON AND TOTALS Q3-17 44,279,326 6,858,115 15.5% 236,068 7,094,183 16.0% 16.5% 267,963 941,397 10,000 194,000 447,810 798,068 $2.01 Q2-17 44,269,326 7,116,078 16.1% 197,574 7,313,652 16.5% 17.4% 545,955 673,434 184,000 184,000 224,364 946,014 $2.02 Q1-17 44,085,326 7,478,033 17.0% 199,166 7,677,199 17.4% 17.7% 127,479 127,479 - - 256,364 739,046 $2.02 Q4-16 44,085,326 7,605,512 17.3% 192,057 7,797,569 17.7% 17.5% 40,170 654,808 160,103 292,208 194,000 490,400 $2.02 Q3-16 43,925,223 7,485,579 17.0% 204,870 7,690,449 17.5% 17.9% 216,559 614,638-132,105 386,603 281,302 $2.01 Q2-16 43,925,223 7,702,138 17.5% 157,956 7,860,094 17.9% 18.0% 119,251 398,079 121,405 132,105 386,603 421,140 $1.99 Q1-16 43,803,818 7,699,984 17.6% 192,126 7,892,110 18.0% 18.6% 278,828 278,828 10,700 10,700 325,266 463,140 $1.99 19 Las Vegas Research & Forecast Report Q3 2017 Office Colliers International

Research & Forecast Report LAS VEGAS RETAIL Q3 2017 Dragging Anchor(s) > > Net absorption continued to be positive in the third quarter of 2017 > > Vacancy increased slightly to 8.3 percent > > Asking rental rates decreased to $1.34 per square foot on a triple-net basis As retail job growth has slowed in 2017 in Southern Nevada, retail occupancy growth has slowed with it. Net absorption was positive for a second straight quarter after a negative dip in the first quarter of 2017, but the addition of newly completed vacant space and the closure of three more anchor retailers increased retail vacancy to 8.3 percent from last quarter s 8.2 percent. The asking rental rate for retail space in the third quarter of 2017 was $1.34 per square foot (psf) on a triple-net (NNN) basis, lower than one quarter ago, but higher than in the third quarter of 2016. According to the Nevada Department of Employment, Training and Rehabilitation, Southern Nevada s retail job market suffered in July 2017 (the latest month of data available) compared with July 2016, losing approximately 2,700 jobs in the past twelve months. The job Historical Vacancy Rates and Asking Lease Rates Economic Indicators RETAIL Employment Market Indicators Relative to prior period Q3 2017 Q4 2017* VACANCY NET ABSORPTION CONSTRUCTION RENTAL RATE *Projected -0.8% Summary Statistics RETAIL Taxable Sales +2.8 RETAIL SF/Job +0.8% Q3 2017 Las Vegas Market Q3-16 Q2-17 Q3-17 9.6% 9.4% $1.42 $1.40 Vacancy Rate 8.6% 8.2% 8.3% 9.2% 9.0% $1.38 $1.36 Asking Rent (PSF, NNN) $1.32 $1.36 $1.34 8.8% 8.6% $1.34 $1.32 Net Absorption (SF) 408,766 128,024 68,470 8.4% 8.2% $1.30 $1.28 New Completions (SF) 71,069 0 119,220 8.0% $1.26 7.8% 7.6% $1.24 $1.22 Overall Asking Rents 7.4% 4 Q 2015 1 Q 2016 2 Q 2016 3 Q 2016 4 Q 2016 1 Q 2017 2 Q 2017 3 Q 2017 $1.20 Per Square Foot Power Center $1.51 $1.63 $1.52 Vacancy Asking Rental Rate Community Center $1.27 $1.29 $1.31 The pace of anchor space closures has increased in 2017 compared to 2016, and these large additions to the Valley s vacant inventory are acting as a headwind to the retail market s recovery. Neighborhood Center $1.47 $1.43 $1.42 Strip Center $1.18 $1.25 $1.23

losses experienced during the Great Recession were reversed from 2012 to 2015 and expanded during 2016. That 2017 is showing job losses while the economy is apparently expanding is notable and disturbing. Unemployment in the Las Vegas-Paradise MSA stood at 5.1 percent as of July 2017, down from 6.7 percent in July 2016. From July 2016 to July 2017, total employment in Southern Nevada increased by 34,600 jobs, a 3.9 percent increase. Historical Net Absorption vs. Completions 450,000 400,000 350,000 300,000 250,000 200,000 The Nevada Department of Taxation reports that Clark County s taxable retail sales for the past twelve months (July 2016 to June 2017, the most recent month of data available) totaled $29.4 billion, up from $28.3 billion in the previous twelve months. In the past twelve months taxable sales were $4.7 billion in the automotive sector, $10.6 billion in food service and $13.8 billion in other retail (excluding gas stations). 150,000 100,000 50,000 0-50,000 4 Q 2015 1 Q 2016 2 Q 2016 3 Q 2016 4 Q 2016 1 Q 2017 2 Q 2017 3 Q 2017 Net Absorption Completions The highest year-over-year growth in taxable retail sales in June 2017 were in automotive (9.8 percent), home and garden stores (7.3 percent growth) and gasoline stations (7.2 percent growth). Year-over-year taxable sales decreased in sporting goods and hobby stores (negative 7.8 percent), electronics and appliance stores (negative 10 percent growth), clothing stores (negative 5 percent growth), furniture stores (negative 1.5 percent growth) and food and beverage stores (negative 3.2 percent). Non-store retailers, by comparison, posted 16.7 percent year-over-year growth this, in a nutshell, is the problem. Occupancy vs. Retail Employment 85,000 84,000 83,000 82,000 81,000 92.0% 91.5% 91.0% 90.5% 90.0% A 26,220 square foot strip center was completed in the Northwest 80,000 89.5% submarket this quarter, entering the market approximately 50 percent pre-leased. The market currently has 392,787 square feet of retail product under construction, with approximately 320,000 square feet 79,000 4 Q 2015 1 Q 2016 2 Q 2016 3 Q 2016 4 Q 2016 1 Q 2017 2 Q 2017 3 Q 2017 Retail Jobs Occupancy Rate 89.0% scheduled for completion by the end of 2017. Another 1.9 million square feet of retail could potentially be completed in 2018, although it is likely that no more than half of it will be. Net absorption was 68,470 square feet in the third quarter of 2017, approximately half that of the previous quarter. This brought year-todate net absorption up to 178,669 square feet. This was significantly lower than in the third quarter of 2016, when year-to-date net absorption was 665,856 square feet. Third quarter 2017 net absorption was negative in power centers (negative 376 square feet) and positive in strip centers (46,447 square feet), neighborhood centers (13,091 square feet) and community centers (9,308 square feet). 21 Las Vegas Research & Forecast Report Q3 2017 Retail Colliers International

Net absorption was positive in three of the Valley s eight submarkets, including Southwest (126,422 square feet), Henderson (15,819 square feet) and West Central (7,953 square feet). Net absorption was negative in University East (negative 37,935 square feet), Northwest (negative 28,336 square feet), Northeast (negative 8,182 square feet), Downtown (negative 5,963 square feet) and North Las Vegas (negative 1,308 square feet). This illustrates, in a snapshot, the problems currently faced by the retail market. Net absorption is positive in the big picture, but very often negative in the details, as four of the Valley s eight submarkets have posted negative net absorption for the year-to-date. Gross absorption of retail product totaled 502,707 square feet in the third quarter of 2017, bringing year-to-date net absorption up to 1.81 million square feet. Continued weakness in the large anchor segment of the market is stunting overall growth in retail occupancy. Three anchor spaces totaling 125,980 square feet were vacated in the third quarter of 2017. For the year as a whole, a total of 345,528 square feet of anchor space was vacated. Compare this to 2016, when a total of 128,396 square feet of anchor space was brought to market and you can see the scope of challenge ahead of Southern Nevada and many other communities. If all of this anchor space had remained occupied, the past seven quarters would have produced over 1.5 million square feet of net absorption and vacancy would be in the neighborhood of 7.5 percent. Adding to these woes is the recent declaration of bankruptcy by Toys R Us and Goodwill of Southern Nevada, and the continued closure of more K-Mart and Sears locations. Fortunately, a few new anchors are counterbalancing these closures, including Burlington Coat, La Bonita Supermarket, Ross Dress for Less and the PGA Tour Superstore. Retail vacancy in Southern Nevada was 8.3 percent in the third quarter of 2017, slightly higher than the previous quarter s 8.2 percent vacancy and 0.3 points lower than one year ago. Occupancy in Southern Nevada s retail market has been expanding since 2012, although growth slowed in 2014 and dipped for one quarter in 2016 into negative territory. This gives us two periods of strong retail growth, from 2012 to 2013, and from 2015 to present. In 2017, the negative net absorption in the first quarter was reversed by strong second and third quarters, suggesting that the current expansion is not over. That being said, year-to-date negative net absorption in half of the Valley s submarkets paints a more complex picture of retail demand. Retail employment is not growing at Retail Development Schedule Project Type Submarket Size (SF) Pre-Leasing Q4-2017 320,000 SF 76% Mountains Edge Marketplace Community Center Southwest 133,000 SF 54% St Rose Coronado Center Strip Retail Henderson 18,000SF 8% Walmart (Blue Diamond) Neighborhood Center Southwest 169,000 SF BTS Q1-2018 73,000 SF 66% DCs Plaza Neighborhood Center Northwest 73,000 SF 66% 2018 1,852,000 SF 46% 215 Curve Community Center Southwest 207,000 SF 76% Cadence Village Center Neighborhood Center Henderson 153,000 SF 85% Centennial Hills Center Strip Retail Northwest 31,000 SF 0% Craig & Camino Al Norte Strip Retail North Las Vegas 123,000 SF 0% Kaktus Life Strip Retail Southwest 29,000 SF 0% Maryland & Silverado Sprouts Neighborhood Center University East 51,000 SF 72% Quail Bonita Strip Retail Henderson 42,000 SF 21% Rainbow & Arby Sprouts Neighborhood Center Southwest 65,000 SF 53% Rainbow Blue Diamond Strip Retail Southwest 45,000 SF 0% Sahara Crossing Strip Retail Downtown 41,000 SF 0% St Rose Square Henderson Neighborhood Center 466,000 SF 45% Shanghai Plaza Strip Retail West Central 80,000 SF 0% Shoppes on the Parkway Henderson Strip Retail 58,000 SF 0% Silverado Promenade Neighborhood Center University East 130,000 SF 100% Sunset & Durango Neighborhood Center Southwest 152,000 SF 67% The Gateway Henderson Strip Retail 35,000 SF 57% Union Village Henderson Strip Retail 125,000 SF 0% University Gateway Strip Retail University East 19,000 SF 80% 22 Las Vegas Research & Forecast Report Q3 2017 Retail Colliers International

Single-Tenant Retail 2013 2014 2015 2016 2017 YTD No. Sales 47 61 66 68 43 Square Footage Sold 719,000 643,000 981,000 572,000 324,000 Sales Volume $139.8 MM $187.5 MM $306.2 MM $176.6 MM $120.7 MM Average Price/SF $194.55 $291.50 $312.00 $308.44 $372.90 Average Sale Size (SF) 15,300 10,500 14,900 8,400 7,500 Cap Rate 7.2% 7.2% 7.0% 6.6% Shopping Center Retail 2013 2014 2015 2016 2017 YTD No. Sales 48 60 58 41 30 Square Footage Sold 3,192,000 4,025,000 3,195,000 2,528,000 3,725,000 Sales Volume $359.2 MM $504.5 MM $588.1 MM $419.7 MM $531.7 MM Average Price/SF $112.52 $125.33 $184.08 $166.00 $142.76 Average Sale Size (SF) 66,000 67,000 55,000 62,000 124,000 Cap Rate 8.9% 7.7% 6.7% 7.5% quickly as one might expect given the rate of taxable sales growth, and this lack of employment growth is probably being mirrored in the low growth of occupied retail real estate. Among submarkets, the Valley s highest vacancy this quarter was 13.0 percent in University East, while the lowest vacancy rate was 4.8 percent in the Southwest submarket, a sign of the demographic migration of the Valley s middle class from the east side of the Valley, where they settled during the 1970 s and 1980 s, to the west side of the Valley. Vacancy decreased this quarter in the Southwest and West Central submarkets, and increased in the Downtown, Northeast, Northwest and University East submarkets. Vacancy was static in Henderson and North Las Vegas. The average asking rental rate for retail space in Southern Nevada was $1.34 psf NNN in the third quarter of 2017, lower than in the previous quarter but higher than one year ago. Five submarkets saw asking rates increase on a quarter-over-quarter basis this quarter; North Las Vegas ($0.06 psf), Southwest ($0.05 psf), Henderson ($0.01 psf), Northeast ($0.01 psf) and Northwest ($0.01 psf). Asking rates decreased in University East ($0.10 psf), Downtown ($0.03 psf) and West Central ($0.01 psf). Asking rents decreased in power centers ($0.11 psf) neighborhood centers ($0.02) and strip centers ($0.02 psf), and increased in community centers ($0.03). Single-tenant retail investment sales volume so far in 2017 was $120.7 million in 43 sales totaling 324,000 square feet. This rendered an average price per square foot of $372.90. Unless the fourth quarter of this year comes on like gangbusters, 2017 will prove to have been a much weaker year for single-tenant investment sales than the previous four years. 2018 will still present challenges for the Valley s retail market. 23 Las Vegas Research & Forecast Report Q3 2017 Retail Colliers International

Shopping center investment sales volume in the first three quarters of 2017 was $531.7 million in 30 sales totaling 3.7 million square feet. This rendered an average price per square foot of $142.76, lower than in the two previous years. Notably, the average size of a shopping center sold in 2017 is approximately twice as large as those sold in the previous four years, one likely reason that the average price per square foot is lower. The average cap rate so far in 2017 was 7.5 percent, higher than in 2016. The pace of anchor space closures has increased in 2017 compared to 2016, and these large additions to the Valley s vacant inventory are acting as a headwind to the retail market s recovery. In fact, they appear to be keeping the retail market s future expansion at bay. This is significant, because it is occuring during overall economic growth. Anchor closures during a recession is par for the course, but during an expansion it points to a shift in the way people do business. Fortunately for Southern Nevada, a couple new anchor retailers are entering the market in the fourth quarter of 2017, and this will boost the year s otherwise mediocre net absorption number. That being said, 2018 will still present challenges for the Valley s retail market. Retail employment is not increasing at the present time and online retail sales are continuing to impact brick & mortar retail. We think retail occupancy will increase through 2018, but probably not at the rate we would prefer. Households (2017) Avg. HH Income (2017) Occupied Retail Space (2016 Avg.) Occupied Retail Space (2017 Avg.) Downtown 38,000 $41,000 2,010,000 2,025,000 Henderson 112,800 $86,000 9,537,000 9,575,000 North Las Vegas 75,200 $67,000 5,625,000 5,789,000 Northeast 82,300 $55,000 3,122,000 3,104,000 Northwest 181,600 $85,000 12,741,000 12,949,000 Southwest 99,000 $81,000 7,587,000 7,637,000 University East 108,100 $61,000 7,889,000 8,004,000 West Central 56,300 $53,000 6,303,000 6,178,000 Source of Demographic Data: Claritas 24 Las Vegas Research & Forecast Report Q3 2017 Retail Colliers International

Significant Retail Sale Activity 215 NORTH LAS VEGAS Montecito Marketplace 190,000 SF - $63,500,000 $334.00/SF NORTHWEST 95 August 2017 Multi-Tenant/Smiths/TJ Maxx 15 Flamingo Grand Parkway 65,000 SF - $16,650,000 WEST CENTRAL DOWN TOWN NORTHEAST LAS VEGAS $257.00/SF August 2017 Multi-Tenant/Sprint Store Sunrise Mountain Plaza 144,000 SF - $13,500,000 95 $94.00/SF July 2017 UNIVERSITY AIRPORT Multi-Tenant/Big K-Mart Renaissance Center East 215 146,000 SF - $12,400,000 $85.00/SF SOUTHWEST HENDERSON September 2017 Multi-Tenant/Savers RESORT CORRIDOR Boca Park Marketplace 14,000 SF - $7,800,000 $541.00/SF June 2017 Single Tenant/A Children s Dentist Lease Activity Property Name Tenant Lease Date Lease Term Size Lease Rate Type Warm Springs Marketplace RBNV 1 Inc Sep 2017 60 months 3,300 SF $1.83 NNN Community Center Pebble Marketplace Go Wireless Jul 2017 36 months 2,100 SF $2.51 NNN Neighborhood Center Rancho Pines Business Park Rancho Gold & Jewelry Aug 2017 60 months 2,000 SF $1.34 NNN Strip Center Lake Mead Plaza My Peak Wireless Sep 2017 48 months 2,000 SF $1.66 NNN Neighborhood Center Galleria Pavilion Sport Clips Jul 2017 60 months 1,200 SF $2.68 NNN Strip Center 25 Las Vegas Research & Forecast Report Q3 2017 Retail Colliers International

Market Comparisons - Las Vegas Retail Market TYPE TOTAL INVENTORY SF DIRECT VACANT SF DIRECT VACANCY RATE SUBLEASE VACANT SF TOTAL VACANT SF VACANCY RATE CURRENT QUARTER VACANCY RATE PRIOR QUARTER NET ABSORPTION CURRENT QTR SF NET ABSORPTION YTD SF COMPLETIONS CURRENT QTR SF COMPLETIONS YTD SF UNDER CONSTRUCTION SF PLANNED CONSTRUCTION SF WEIGHTED AVG ASKING RENTAL RATE DOWNTOWN PC - - n/a - - n/a n/a - - - - - - $- CC 731,186 84,158 11.5% - 84,158 11.5% 11.5% - (6,135) - - - - $1.28 NC 588,070 109,293 18.6% - 109,293 18.6% 18.0% (3,360) (43,521) - - - - $0.90 SC 989,530 96,044 9.7% 1,960 98,004 9.9% 9.6% (2,603) (19,974) - 19,800-40,500 $1.41 Total 2,308,786 289,495 12.5% - 289,495 12.5% 12.4% (5,963) (69,630) - 19,800-40,500 $1.30 HENDERSON PC 2,896,215 67,281 2.3% - 67,281 2.3% 2.4% 2,000 31,960 - - - - $1.91 CC 2,724,168 163,371 6.0% - 163,371 6.0% 6.4% 9,345 24,327-33,789 - - $1.56 NC 2,930,045 326,886 11.2% 118,847 445,733 15.2% 15.2% 1,437 21,398 - - - 618,422 $1.40 SC 1,929,708 320,004 16.6% - 320,004 16.6% 15.8% 3,037 (34,420) 21,000 21,000 18,237 259,860 $1.20 Total 10,480,136 877,542 8.4% 118,847 996,389 9.5% 9.5% 15,819 43,265 21,000 54,789 18,237 878,282 $1.40 NORTH LAS VEGAS PC 774,065 31,986 4.1% - 31,986 4.1% 4.1% - - - - - - $2.25 CC 2,150,284 130,676 6.1% - 130,676 6.1% 6.1% 1,428 27,736 - - - - $1.56 NC 2,025,313 125,101 6.2% 7,089 132,190 6.5% 6.1% (7,806) 25,394 - - - - $1.57 SC 1,290,836 143,091 11.1% - 143,091 11.1% 11.5% 5,070 31,191 - - - 122,718 $1.42 Total 6,240,498 430,854 6.9% 7,089 437,943 7.0% 7.0% (1,308) 84,321 - - - 122,718 $1.57 NORTHEAST PC - - n/a - - n/a n/a - - - - - - $- CC 1,295,615 74,936 5.8% 18,614 93,550 7.2% 7.5% 1,547 (6,904) - - - - $1.59 NC 1,307,891 89,876 6.9% 62,301 152,177 11.6% 11.4% (3,411) (7,491) - - - - $1.38 SC 768,811 113,674 14.8% - 113,674 14.8% 14.0% (6,318) (5,545) - - - - $0.87 Total 3,372,317 278,486 8.3% 80,915 359,401 10.7% 10.5% (8,182) (19,940) - - - - $1.23 NORTHWEST PC 3,171,110 273,572 n/a - 273,572 8.6% 7.0% (52,578) (37,544) - - - - $1.57 CC 4,800,446 140,860 2.9% 75,636 216,496 4.5% 4.3% (5,414) (10,761) - - - - $1.66 NC 3,419,506 265,601 7.8% 35,431 301,032 8.8% 9.3% 16,404 23,461 - - 72,550 - $1.40 SC 2,476,220 257,557 10.4% - 257,557 10.4% 10.0% 13,252 15,379 26,220 26,220-31,000 $1.34 Total 13,867,282 937,590 6.8% 111,067 1,048,657 7.6% 7.2% (28,336) (9,465) 26,220 26,220 72,550 31,000 $1.47 SOUTHWEST PC 944,314 7,200 0.8% - 7,200 0.8% 5.3% 42,596 38,896 - - - - $1.67 CC 2,555,783 106,396 4.2% - 106,396 4.2% 4.2% 70,800 71,790 72,000 72,000 133,000 207,250 $1.73 NC 2,303,100 137,052 6.0% 7,276 144,328 6.3% 6.5% 6,396 15,955 - - 169,000 217,200 $2.14 SC 2,332,845 141,896 6.1% - 141,896 6.1% 6.4% 6,630 73,485 - - - 73,958 $1.54 Total 8,136,042 392,544 4.8% 7,276 399,820 4.9% 5.6% 126,422 200,126 72,000 72,000 302,000 498,408 $1.80 UNIVERSITY EAST PC 1,210,223 124,864 10.3% - 124,864 10.3% 10.2% (1,000) (2,348) - - - - $1.16 CC 2,946,813 387,342 13.1% 28,955 416,297 14.1% 12.5% (49,313) (92,231) - - - - $0.96 NC 2,018,675 159,185 7.9% 163,160 322,345 16.0% 17.4% 10,091 (10,719) - - - 180,588 $1.35 SC 2,990,552 520,181 17.4% 1,800 521,981 17.5% 17.7% 2,287 8,250 - - - 19,124 $1.06 Total 9,166,263 1,191,572 13.0% 192,115 1,383,687 15.1% 15.0% (37,935) (97,048) - - - 199,712 $1.08 WEST CENTRAL PC 1,138,224 90,010 7.9% - 90,010 7.9% 8.7% 8,606 24,188 - - - - $1.32 CC 1,673,939 234,646 14.0% - 234,646 14.0% 12.9% (19,085) 13,525 - - - - $1.11 NC 1,777,642 124,820 7.0% 47,716 172,536 9.7% 9.3% (6,660) (10,371) - - - - $1.13 SC 2,170,564 135,430 6.2% - 135,430 6.2% 7.4% 25,092 19,698 - - - 80,000 $1.18 Total 6,760,369 584,906 8.7% 47,716 632,622 9.4% 9.5% 7,953 47,040 - - - 80,000 $1.16 MARKET TOTAL PC 10,134,151 594,913 5.9% - 594,913 5.9% 5.9% (376) 55,152 - - - - $1.52 CC 18,878,234 1,322,385 7.0% 123,205 1,445,590 7.7% 7.4% 9,308 21,347 72,000 105,789 133,000 207,250 $1.31 NC 16,370,242 1,337,814 8.2% 441,820 1,779,634 10.9% 11.1% 13,091 14,106 - - 241,550 1,016,210 $1.42 SC 14,949,066 1,727,877 11.6% 3,760 1,731,637 11.6% 11.6% 46,447 88,064 47,220 67,020 18,237 627,160 $1.23 Total 60,331,693 4,982,989 8.3% 568,785 5,551,774 9.2% 9.2% 68,470 178,669 119,220 172,809 392,787 1,850,620 $1.34 QUARTERLY COMPARISON AND TOTALS Q3-17 60,331,693 4,982,989 8.3% 568,785 5,551,774 9.2% 9.2% 68,470 178,669 119,220 172,809 392,787 1,850,620 $1.34 Q2-17 60,212,473 4,932,239 8.2% 593,307 5,525,546 9.2% 9.4% 128,024 110,199 0 53,589 512,007 1,770,620 $1.36 Q1-17 60,212,473 5,060,263 8.4% 580,286 5,640,549 9.4% 8.9% (17,825) (17,825) 53,589 53,589 446,550 1,183,806 $1.36 Q4-16 60,158,884 4,988,849 8.3% 354,423 5,343,272 8.9% 9.6% 234,591 900,447 65,851 240,625 523,506 1,385,706 $1.35 Q3-16 60,093,033 5,157,589 8.6% 639,448 5,797,037 9.6% 10.2% 408,766 665,856 71,069 174,774-1,564,516 $1.32 Q2-16 60,021,964 5,495,286 9.2% 618,699 6,113,985 10.2% 10.2% (26,507) 257,090 23,705 103,705 71,069 1,492,349 $1.30 Q1-16 59,998,259 5,445,074 9.1% 653,842 6,098,916 10.2% 10.5% 283,597 283,597 80,000 80,000 242,402 466,083 $1.30 PC = Power Center CC = Community Center NC = Neighborhood Center SC = Strip Center 26 Las Vegas Research & Forecast Report Q3 2017 Retail Colliers International

Research & Forecast Report LAS VEGAS MULTIFAMILY Q3 2017 Multifamily Stable and Expanding > > Multifamily vacancy decreased to 3.0 percent in the second quarter of 2017 Economic Indicators > > No new projects were completed in the second quarter, though many were under construction ELECTRIC Meter Hookups NEW HOME Median Price THIRTY YEAR Mortgage Rate > > Rental rates continued to increase, reaching an average of $978 per unit According to statistics provided by REIS, multifamily vacancy in Southern Nevada decreased by 0.1 point in the second quarter of 2017 (the most recent quarter of available data) to 3.0 percent. Vacancy this quarter was 0.2 points higher than it was one year ago. Class A properties were 3.4 percent vacant in the second quarter, 0.2 points lower than one quarter ago. Class B/C properties were 2.5 percent vacant, 0.1 points lower than one quarter ago. Almost all of the Valley s submarkets had positive net absorption in the second quarter of 2017, with the Northeast submarket being the only submarket posting negative net absorption (negative 18 units) and the Downtown and North Las Vegas submarkets registering no net absorption. The Valley s highest net absorption +9.6% +1.7% Market Indicators +0.4 Points Relative to prior period Q2 2017 Q3 2017* VACANCY NET ABSORPTION COMPLETIONS RENTAL RATE *Projected Historical Vacancy Rates and Rental Rates 5.0% 4.5% 4.0% 3.5% 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% $1,000 $980 $960 $940 $920 $900 $880 Summary Statistics Las Vegas Market Q2-16 Q1-17 Q2-17 Vacancy Rate 2.8% 3.1% 3.0% Asking Rent (PSF, NNN) $936 $966 $978 Net Absorption YTD (SF) 743 688 254 New Completions YTD (SF) 471 943 0 0.0% 2 Q 2015 3 Q 2015 4 Q 2015 1 Q 2016 2 Q 2016 3 Q 2016 4 Q 2017 1 Q 2017 2 Q 2017 $860 Overall Asking Rents Vacancy Rate Average Rental Rate Per Unit Per Month The median price of condominium units in particular showed a large increase in the past two quarters, keeping demand for multifamily strong. Class A $1,098 $1,109 $1,121 Class B/C $821 $827 $834

was in the Northwest/Southwest submarket (160 units), followed by West Central (40 units) and University (29 units). No new multifamily projects were completed in the second quarter of 2017 according to REIS. A total of 5,789 units were under construction, most of them in the Northwest/Southwest and Henderson/Green Valley submarkets. We expect 3,440 units of multifamily will be completed through the remainder of 2017. Current multifamily development is concentrated along the I-215 Beltway, which runs from the Henderson/Green Valley submarket to the Northwest/Southwest submarket. Another 6,208 units of multifamily are planned to begin construction within the next twelve months. Historical Net Absorption vs. Completions Net Absorption vs. Completions 1,400 1,200 1,000 800 600 400 200 0 2 Q 2015 3 Q 2015 4 Q 2015 1 Q 2016 2 Q 2016 3 Q 2016 4 Q 2017 1 Q 2017 2 Q 2017 Net Absorption (Units) Completions (Units) The average asking rent for multifamily was $978 per unit in the second quarter of 2017, increasing by $12 psf from the first quarter of 2017, and by $42 per unit since the second quarter of 2016. Class A properties saw asking rates increase by 2.1 percent year-overyear to $1,121 per unit, while Class B/C properties saw a 1.6 percent increase to $834 per unit. Unemployment in the Las Vegas-Paradise MSA stood at 5.1 percent as of July 2017, down from 6.7 percent in July 2016. From July 2016 to July 2017, total employment in Southern Nevada increased by 34,600 jobs, a 3.9 percent increase.the majority of the Valley s new jobs were in professional and business services (+16,400 jobs), other services (+7,500 jobs) and construction (+6,600 jobs). Jobs were lost on a year-over-year basis in retail (-2,700 jobs), transportation and warehousing (-3,800 jobs) and wholesale (-900 jobs). Sales (Units) vs. Price Per Unit 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 Sales (Units) vs. Price Per Unit 0 2 Q 2015 3 Q 2015 4 Q 2015 1 Q 2016 2 Q 2016 3 Q 2016 4 Q 2017 1 Q 2017 2 Q 2017 $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $0 Complex Under Construction Submarket Units Castile Apartments & Senior Living Henderson/GV 499 Evolve Apartment Homes Henderson/GV 398 Silverado West Apartments Henderson/GV 362 Elysian @ Stone Lake Henderson/GV 360 The Gallery Phase II Northwest/Southwest 325 The Abode Red Rock Northwest/Southwest 308 Inspire Apartment Homes Northwest/Southwest 307 Loftus Apartments West Central 295 East Gibson Apartments Henderson/GV 288 Eden Nevada West Northwest/Southwest 276 Boulder Pines Family Apartments East Las Vegas 264 Vue at Centennial Phase II North Las Vegas 261 Picerne Oquendo Northwest/Southwest 244 Fremont9 Downtown 231 U District The Degree Henderson/GV 226 South Beach Resort Northwest/Southwest 220 Warmington Solana Apartments Northwest/Southwest 204 The Mercer Northwest/Southwest 177 Red Rock Pointe Senior Living Northwest/Southwest 128 Evo Apartments Phase III Northwest/Southwest 120 Donna Louise Apartments Northeast 96 Jardin Gardens Northeast 80 Cordero Pines Phase II Northeast 60 Thunderbird Stephanie Henderson/GV 57 TOTAL 5,786 Total Sales (Units) Average Price Per Unit 28 Las Vegas Research & Forecast Report Q3 2017 Multifamily Colliers International

Demographics Submarket Estimated Households (2017) Renter Occupied (2017) Median Household (2017) Average Household (2017) Proj. Annual Growth Rental Households (2017-2022) Downtown 50,800 59% $32,200 2.8 260 East 58,100 44% $42,900 2.7 320 Henderson/Green Valley 148,200 38% $63,800 2.6 790 North Las Vegas 107,600 32% $60,400 3.2 590 Northeast 50,300 49% $40,200 3.3 290 Northwest/Southwest 215,500 36% $66,000 2.6 1,270 University 36,600 77% $35,200 2.2 250 West Central 99,300 56% $45,800 2.4 610 TOTAL 743,000 43% $51,000 2.7 3,802 Source: Claritas According to data provided by the Nevada Department of Motor Vehicles, the number of out-of-state driver s licenses turned in to the DMV between June 2016 and June 2017 was 69,029. This is higher than during the same period in 2016 when they reported 65,410 licenses, and suggests that population growth in Southern Nevada is accelerating. Electric meter hookups were 811,401 meters in June 2017, up 1.7 percent from one year ago. Population growth has been a major driver of Southern Nevada s economic growth since Las Vegas birth in 1905, so improvements in population growth are particularly important for the region and the multifamily market in particular. Multifamily sales improved in the second quarter of 2017 compared to the first quarter, with 5,634 units selling at an average sales price per unit of $106,085. This is more units than sold in the first quarter of 2017, though less than sold one year ago in the second quarter of 2016. Sales were skewed heavily towards Class B/C properties constructed in the 1990 s. Initial estimates for third quarter 2017 sales show approximately 3,687 units sold at an average price per unit of $127,126. Among the institutional entities purchasing multifamily in Southern Nevada this year are Blackstone Group, Westland Real Estate Group, MG Properties Group, 3D Investments, Langdon Street Capital and Blackhawk Capital Group. Southern Nevada s multifamily market is stable and expanding, which suggests that values will continue to increase in the near term. Population growth in Southern Nevada appears to be improving, and while multifamily rents are on the rise, they remain more affordable than buying a home for many. The median price of condominium units in particular showed a large increase in the past two quarters, keeping demand for multifamily strong. Sales Data 2013 2014 2015 2016 2017 YTD Units Sold 17,808 14,019 15,408 22,074 9,196 Average Price Per Unit $75,600 $73,627 $71,836 $96,720 $109,084 Cap Rate 5.7% 6.0% 7.3% 5.5% 5.7% 29 Las Vegas Research & Forecast Report Q3 2017 Multifamily Colliers International

215 NORTH LAS VEGAS Significant Multifamily Sales Activity Elysian West 466 Units - $106,500,000 NORTHEAST $229,000/Unit July 2017 95 15 Year Built - 2016 DOWNTOWN Oasis Meadows Apartments 383 Units - $38,300,000 $100,000/Unit Septmeber 2017 Year Built - 1996 WEST CENTRAL 95 EAST Palms at Peccole Ranch 404 Units - $62,000,000 $153,000/Unit July 2017 NORTHWEST/ SOUTHWEST UNIVERSITY Year Built - 1996 South Boulevard Apartments 215 320 Units - $53,600,000 $168,000/Unit HENDERSON/ GREEN VALLEY July 2017 Year Built - 2012 Veritas Apartments 430 Units - $76,500,000 $178,000/Unit July 2017 Year Built - 2010 Sales Activity Continued Property Name Sale Date Units Price Price/Unit Year Built 5280 W Hacienda Avenue Aug 2017 170 $24,000,000 $141,000 1998 Sterling Court Apartments Jul 2017 237 $24,000,000 $101,000 1991 Oasis Ridge Apartments Sep 2017 477 $19,800,000 $41,000 1984 Autumn Ridge Apartments Aug 2017 168 $18,200,000 $108,000 1999 Sunrise Springs Apartments Jul 2017 192 $15,600,000 $81,000 1989 Source: Real Capital Analytics 30 Las Vegas Research & Forecast Report Q3 2017 Multifamily Colliers International

Market Comparisons - Las Vegas Multifamily Market CLASS TOTAL INVENTORY UNITS CURRENT VACANCY RATE PRIOR QTR VACANCY RATE NET ABSORPTION NET ABSORPTION YTD UNITS CURRENT QTR COMPLETIONS YTD UNIT COMPLETIONS UNDER CONSTRUCTION UNITS PLANNED CONSTRUCTION UNITS TOTAL SALES UNITS AVERAGE PRICE PER UNIT AVERAGE RENTAL RATE DOWNTOWN A 2,773 1.6% 1.5% (4) (11) - - 231 434 - n/a $939 B/C 13,394 1.3% 1.4% 4 23 - - - - 1,393 $73,232 $774 Total 16,167 1.4% 1.4% - 12 - - 231 434 1,393 $73,232 $802 EAST LAS VEGAS A 6,381 2.2% 2.1% (6) 51 - - 264 50 - n/a $965 B/C 9,346 2.4% 2.6% 21 12 - - - - 340 $84,559 $800 Total 15,727 2.3% 2.4% 15 63 - - 264 50 340 $84,559 $866 HENDERSON/GREEN VALLEY A 20,337 3.1% 3.2% 25 28 - - 1,964 2,453 480 $149,792 $1,202 B/C 8,068 3.5% 3.5% 3 29 - - - - 932 $80,526 $1,039 Total 28,405 3.2% 3.3% 28 57 - - 1,964 2,453 1,412 $104,072 $1,157 NORTH LAS VEGAS A 13,021 2.6% 2.5% (22) 63-111 437 619 - n/a $992 B/C 9,552 1.8% 2.0% 22 7 - - - - - n/a $790 Total 22,573 2.3% 2.3% - 70-111 437 619 - n/a $906 NORTHEAST A 2,172 4.5% 3.1% (30) (40) - - 60 - - n/a $843 B/C 6,643 3.9% 4.0% 12 22 - - - - 321 $108,000 $786 Total 8,815 4.0% 3.8% (18) (18) - - 60-321 $108,000 $800 NORTHWEST/SOUTHWEST A 18,782 4.7% 5.5% 147 752-832 2,004 359 578 $200,000 $1,281 B/C 5,452 1.6% 1.8% 13 (10) - - - - 1,590 $106,730 $1,135 Total 24,234 4.0% 4.7% 160 742-832 2,004 359 2,168 $131,596 $1,248 UNIVERSITY A 2,180 1.8% 1.9% 2 5 - - 226 1,597 - n/a $1,009 B/C 12,321 4.0% 4.3% 27 (28) - - - - - n/a $749 Total 14,501 3.7% 3.9% 29 (23) - - 226 1,597 - n/a $789 WEST CENTRAL A 6,143 4.6% 5.2% 39 32 - - 600 696 - n/a $1,016 B/C 6,860 1.4% 1.4% 1 7 - - - - - n/a $780 Total 13,003 2.9% 3.2% 40 39 - - 600 696 - n/a $891 MARKET TOTAL A 71,789 3.4% 3.6% 151 880-943 5,786 6,208 1,058 $177,221 $1,121 B/C 71,636 2.5% 2.6% 103 62 - - n/a n/a 4,576 $89,637 $834 Total 143,425 3.0% 3.1% 254 942-943 5,786 6,208 5,634 $106,085 $978 QUARTERLY COMPARISON AND TOTALS Q2-17 143,425 3.0% 3.1% 254 942-943 5,786 6,208 5,634 $106,085 $978 Q1-17 143,425 3.1% 3.0% 688 688 943 943 6,047 7,175 3,562 $113,829 $966 Q4-16 143,425 3.0% 2.9% 139 2,923 288 1,670 3,042 7,525 8,373 $94,773 $959 Q3-16 143,137 2.9% 2.8% 814 2,784 911 1,382 2,908 406 2,161 $77,603 $950 Q2-16 142,226 2.8% 3.1% 743 1,970 471 471 2,470 390 7,170 $113,859 $936 Q1-16 141,755 3.1% 3.9% 1,227 1,227 - - 2,239 621 4,343 $86,112 $925 * Most recent quarter of data Source: REIS Sales Data provided by Colliers International 31 Las Vegas Research & Forecast Report Q3 2017 Multifamily Colliers International

Research & Forecast Report LAS VEGAS MEDICAL OFFICE Q3 2017 Better Late than Never > > Net absorption in medical office buildings has been positive for six straight quarters > > Medical office vacancy has dropped to its lowest level in 4 years > > Asking rental rates continued to increase Southern Nevada s medical office market has now posted positive net absorption for six straight quarters, its longest streak of positive net absorption since 2005. It seems safe to say that the medical office market is finally entering a sustained period of recovery, post-recession and post-healthcare debate. Vacancy was 14.9 percent in the third quarter of 2017, the lowest it has been in four years, and asking rental rates were $2.24 per square foot (psf) on a full service gross (FSG) basis, an increase of $0.09 psf from one year ago. According to the Nevada Department of Employment, Training and Rehabilitation, Southern Nevada s medical office job market was strong in July 2017 (the latest month of data available) compared with July 2016. Ambulatory health care jobs, which have the Historical Vacancy Rates and Rental Rates Economic Indicators HEALTHCARE Employment +5.1% Market Indicators Summary Statistics HEALTHCARE Spending +0.4 MEDICAL SF/Job +5.1% Q3 2017 Relative to prior period Q3 2017 Q4 2017* VACANCY NET ABSORPTION COMPLETIONS RENTAL RATE *Projected 18.0% 17.0% 16.0% 15.0% 14.0% $2.30 $2.25 $2.20 $2.15 $2.10 Las Vegas Market Q3-16 Q2-17 Q3-17 Vacancy Rate 16.3% 16.1% 14.9% Asking Rent (PSF, NNN) $2.15 $2.22 $2.24 Net Absorption (SF) 54,493 234,812 149,492 New Completions (SF) 0 258,954 73,344 13.0% 12.0% 3 Q 2015 4 Q 2015 1 Q 2016 2 Q 2016 Vacancy Rate 3 Q 2016 $2.05 $2.00 Is Southern Nevada s medical office market playing catch-up after the Great Recession, or is it swinging into expansion mode now that Washington D.C. is done (for now) playing with the healthcare system? 4 Q 2016 1 Q 2017 2 Q 2017 Rental Rate 3 Q 2017 Overall Asking Rents Per Square Foot Class A $2.55 $2.72 $2.70 Class B $2.21 $2.20 $2.18 Class C $1.82 $1.81 $1.87

largest impact on the medical office market, increased by 3,200 jobs year-over-year. Hospital jobs increased by 700 year-over-year. Unemployment in the Las Vegas-Paradise MSA stood at 5.1 percent as of July 2017, down from 6.7 percent in July 2016. From July 2016 to July 2017, total employment in Southern Nevada increased by 34,600 jobs, a 3.9 percent increase. Historical Net Absorption vs. Completions 300,000 250,000 200,000 The Nevada Department of Taxation reported that taxable spending on ambulatory health care services in Clark County over the past twelve 150,000 100,000 months (July 2016 to June 2017, the most recent months of data 50,000 available) totaled $120.7 million dollars, a 12.8 percent increase in 0 spending over the previous twelve months. Two new medical office buildings were added to Southern Nevada s inventory in the third quarter of 2017, both constructed by Dignity -50,000 3 Q 2015 4 Q 2015 1 Q 2016 Net Absorption 2 Q 2016 3 Q 2016 4 Q 2016 1 Q 2017 Completions 2 Q 2017 3 Q 2017 Health, one in the Southwest submarket and the other in the West Central submarket. Over the past three quarters, Southern Nevada has expanded its medical office inventory by 391,788 square feet, the first expansion of the local medical office inventory since 2015. We do not expect any additional medical office completions in 2017, but 277,554 square feet of medical office space is planned for completion in 2018. Vacancy in medical office space decreased in the third quarter of 2017 to 14.9 percent, a decrease of 1.2 points from last quarter, and a decrease of 1.4 points from one year ago. Medical office buildings completed over the last six months have been heavily preleased, making these new developments a major factor in the stronger net absorption numbers we have seen in 2017. Healthcare Jobs vs. Occupancy Rate 85.5% 85.0% 84.5% 84.0% 83.5% 83.0% 82.5% 82.0% 17,000 16,500 16,000 15,500 15,000 14,500 14,000 13,500 The highest vacancy rates this quarter were in the Southwest (26.8 percent), Airport (20.2 percent) and North Las Vegas (16.0 percent) submarkets. The lowest vacancy rates were in Downtown (8.5 percent) and Northwest (12.4 percent). Vacancy was static in the Airport and North Las Vegas submarkets. Vacancy decreased in Downtown, East Las Vegas, Henderson, Northwest, Southwest and West Central, with the largest decrease being in the Downtown submarket (3.9 points). 81.5% 3 Q 2015 4 Q 2015 1 Q 2016 2 Q 2016 Healthcare Jobs 3 Q 2016 4 Q 2016 1 Q 2017 2 Q 2017 Occupancy Rate 3 Q 2017 13,000 Year-to-date in 2017, Southern Nevada has absorbed 411,343 square feet of medical office space, the highest net absorption recorded since 2005 and a sign that a genuine recovery is finally taking place. Net absorption was 149,492 square feet in the third quarter of 2017, lower than one quarter ago, but more than double the net absorption recorded one year ago. Medical office developments completed this year have stimulated those net absorption numbers, contributing 68 percent of all net absorption recorded this year. Inventory expansion appears to be finished for the time being, with further expansions planned for 2018. The weighted average asking rental rate for medical office space in the third quarter of 2017 was $2.24 psf FSG. This was $0.02 higher than one quarter ago and $0.09 higher than one year ago. Asking rates for medical office space are now at their highest level since 2011, when they were headed down to cope with the Great Recession. 33 Las Vegas Research & Forecast Report Q3 2017 Medical Office Colliers International

The lowest average asking rate for medical office space in the third quarter was in the Airport submarket at $1.92 psf, followed by Downtown ($1.94 psf) and West Central ($1.96 psf). The Northwest submarket passed Henderson as the Valley s most expensive submarket for medical office, with an asking rate at $2.43 psf, followed by Henderson ($2.41 psf) and Southwest ($2.30 psf). The largest increase in the weighted average asking rate was in West Central, at $0.25 psf, due to the introduction of new vacant office space to the market rather than due to an increase in the asking rate in existing availabilities. The largest decrease was $0.18 psf in the Downtown submarket. The overall asking rate for medical office plunged in Downtown over the past two quarters, and was greeted with stronger demand, suggesting that our Economics 101 textbooks were correct when they tied higher demand for a product to lower prices for that product. Investment sales volume of medical office in the first three quarters of 2017 amounted to $58.4 million in twelve sales totaling 240,977 square feet with an average sales price of $242.32 psf. These buildings had an average cap rate of 7.0 percent. Overall, we are seeing more small medical office buildings selling than in the past few years, and at a higher price per square foot than in past years. Sales volume will not likely match 2014 this year, but it has already passed the sales volume recorded in three of the last four years. Is Southern Nevada s medical office market playing catch-up after the Great Recession, or is it swinging into expansion mode now that Washington D.C. is done (for now) playing with the healthcare system? That is the million dollar question, and it is a difficult one to answer. Healthcare employment in Southern Nevada grew steadily through most of the Great Recession and during the haphazard post-recession recovery, but the medical office market did not always grow along with it. We are not sure that higher healthcare taxable sales are necessarily a sign that the medical office will prosper, as higher sales figures might only point to more expensive healthcare. We think the medical office market will round out the year with a good, though likely not great, fourth quarter. For now, we will demure from making hard and fast predictions about 2018 until the country gets through the mid-term elections, but we expect medical office s recovery to continue for the near term. Office Development Schedule PROJECT CLASS SUBMARKET SIZE PRE-LEASING Q1-2018 107,000 SF 0% Craig & Camino Al Norte C North Las Vegas 107,000 SF 0% 2018 195,777 SF 0% 6060 S Fort Apache A Southwest 45,000 SF 0% Cimarron Courtyard B Southwest 87,554 SF 0% The Gateway C Henderson 38,000 SF 29% We think the medical office market will round out the year with a good, though likely not great, fourth quarter. Medical Office Investment Sales 2013 2014 2015 2016 2017 YTD No. Sales 9 13 8 9 12 Square Feet Sold 249,519 533,835 196,824 305,790 240,977 Sales Volume $37.2 MM $117.1 MM $41.3 MM $36.6 MM $58.4 MM Average Price/SF $149.15 $219.38 $209.92 $126.14 $242.32 Average Cap Rate 7.5% 7.7% 6.8% 7.0% Average Sale Size (SF) 27,700 41,100 24,600 34,000 20,100 *Using the Consumer Price Index, All Urban Consumers, West Region, Class A Cities, 1982-1984 = 100 34 Las Vegas Research & Forecast Report Q3 2017 Medical Office Colliers International

215 NORTH LAS VEGAS Significant Medical Office Sales Activity Quail Park V NORTHWEST 95 15 18,000 SF - $5,500,000 $303/SF March 2017 Class C 2350 West Charleston SUMMERLIN WEST CENTRAL DOWN TOWN EAST LAS VEGAS 15,000 SF - $1,600,000 $110/SF May 2017 Class B 2450 W Charleston Boulevard 52,000 SF - $7,280,000 95 $140/SF February 2017 Class B AIRPORT 3025 S Rainbow Boulevard 215 9,000 SF - $3,415,000 $376/SF April 2017 SOUTHWEST HENDERSON Class C Pageantry Horizon Park 10,000 SF - $3,415,000 $342/SF April 2017 Class C Significant Lease Activity Property Name Lease Date Lease Term Size Lease Rate Tenant Type Tenaya Medical Building Sep 2017 120 months 35,500 SF $1.14 NNN Dialysis Adams Professional Park Jun 2017 36 months 1,500 SF $1.15 NNN Physicians Del E Webb Medical Center May 2017 39 months 1,400 SF $1.56 NNN Legal Henderson Chiropractic Building Aug 2017 23 months 850 SF $0.60 NNN Services Seven Hills Business Park Mar 2017 36 months 2,100 SF $1.39 NNN Legal 35 Las Vegas Research & Forecast Report Q3 2017 Medical Office Colliers International

Market Comparisons - Las Vegas Medical Office Market TYPE TOTAL INVENTORY SF DIRECT VACANT SF DIRECT VACANCY RATE SUBLEASE VACANT SF TOTAL VACANT SF VACANCY RATE CURRENT QUARTER VACANCY RATE PRIOR QUARTER NET ABSORPTION CURRENT QTR SF NET ABSORPTION YTD SF COMPLETIONS CURRENT QTR SF COMPLETIONS YTD SF UNDER CONSTRUCTION SF PLANNED CONSTRUCTION SF WEIGHTED AVG ASKING RENTAL RATE AIRPORT SUBMARKET A - - n/a - - n/a n/a - - - - - - $- B - - n/a - - n/a n/a - - - - - - $- C 38,000 7,690 20.2% - 7,690 20.2% 20.2% - - - - - - $1.92 Total 38,000 7,690 20.2% - 7,690 20.2% 20.2% - - - - - - $1.92 DOWNTOWN SUBMARKET A 65,000-0.0% - - 0.0% 0.0% - - - - - - $- B 227,301 32,156 14.1% - 32,156 14.1% 14.8% 1,461 3,466 - - - - $1.94 C 86,997-0.0% - - 0.0% 15.5% 13,486 13,976 - - - - $- Total 379,298 32,156 8.5% - 32,156 8.5% 12.4% 14,947 17,442 - - - - $1.94 EAST LAS VEGAS SUBMARKET A - - n/a - - n/a n/a - - - - - - $- B 708,064 166,047 23.5% 5,060 171,107 24.2% 24.6% 3,261 (15,668) - - - - $2.07 C 616,007 24,224 3.9% - 24,224 3.9% 5.5% 9,683 23,436 - - - - $1.62 Total 1,324,071 190,271 14.4% 5,060 195,331 14.8% 15.7% 12,944 7,768 - - - - $2.01 HENDERSON SUBMARKET A 501,834 75,241 15.0% - 75,241 15.0% 16.2% 5,931 51,839-80,000 - - $3.03 B 361,179 108,513 30.0% - 108,513 30.0% 29.1% -3,491 17,371-27,000 - - $2.06 C 605,110 23,409 3.9% - 23,409 3.9% 5.0% 3,386 9,290 - - - 14,750 $2.04 Total 1,468,123 207,163 14.1% - 207,163 14.1% 14.8% 5,826 78,500-107,000-14,750 $2.41 NORTH LAS VEGAS SUBMARKET A - - n/a - - n/a n/a - - - - - - $- B 98,011 24,767 25.3% - 24,767 25.3% 25.3% - 38,034-54,090 - - $2.04 C 169,143 17,900 10.6% - 17,900 10.6% 10.6% - 13,625 - - - 107,000 $2.00 Total 267,154 42,667 16.0% - 42,667 16.0% 16.0% - 51,659-54,090-107,000 $2.02 NORTHWEST SUBMARKET A 887,424 176,579 19.9% 6,816 183,395 20.7% 20.0% (6,150) (7,791) - 80,251 - - $2.57 B 1,068,389 80,860 7.6% - 80,860 7.6% 10.5% 63,858 63,858 36,672 36,672 - - $2.26 C 202,434 11,130 5.5% - 11,130 5.5% 4.8% (1,491) 1,200 - - - - $1.89 Total 2,158,247 268,569 12.4% 6,816 275,385 12.8% 13.9% 56,217 57,267 36,672 116,923 - - $2.45 SOUTHWEST SUBMARKET A 115,300 30,142 26.1% - 30,142 26.1% 21.9% (4,867) 14,002 - - - 45,000 $2.63 B 509,445 161,706 31.7% 4,440 166,146 32.6% 36.1% 17,679 107,900-97,613-87,554 $2.32 C 281,220 51,028 18.1% - 51,028 18.1% 18.3% 496 6,700-6,050 - - $2.04 Total 905,965 242,876 26.8% 4,440 247,316 27.3% 28.8% 13,308 128,602-103,663-132,554 $2.30 WEST CENTRAL SUBMARKET A - - n/a - - n/a n/a - - - - - - $- B 327,699 36,077 11.0% - 36,077 11.0% 9.5% 28,346 33,501 36,672 36,672 - - $2.53 C 870,457 127,171 14.6% - 127,171 14.6% 16.7% 17,904 36,604 - - - - $1.80 Total 1,198,156 163,248 13.6% - 163,248 13.6% 14.9% 46,250 70,105 36,672 36,672 - - $1.96 MARKET TOTAL A 1,569,558 281,962 18.0% 6,816 288,778 18.4% 18.1% (5,086) 58,050-160,251-45,000 $2.70 B 3,300,088 610,126 18.5% 9,500 619,626 18.8% 20.4% 111,114 248,462 73,344 252,047-87,554 $2.18 C 2,869,368 262,552 9.2% - 262,552 9.2% 10.8% 43,464 104,831-6,050-121,750 $1.87 Total 7,739,014 1,154,640 14.9% 16,316 1,170,956 15.1% 16.3% 149,492 411,343 73,344 418,348-254,304 $2.24 QUARTERLY COMPARISON AND TOTALS Q3-17 7,739,014 1,154,640 14.9% 16,316 1,170,956 15.1% 16.3% 149,492 411,343 73,344 418,348-254,304 $2.24 Q2-17 7,665,670 1,230,788 16.1% 20,274 1,251,062 16.3% 16.6% 234,812 261,851 258,954 345,004 73,344 547,100 $2.22 Q1-17 7,406,716 1,206,646 16.3% 20,562 1,227,208 16.6% 16.0% 27,039 27,039 86,050 86,050 107,251 238,000 $2.19 Q4-16 7,320,666 1,147,635 15.7% 23,077 1,170,712 16.0% 16.6% 47,040 80,808 - - 187,251 103,000 $2.14 Q3-16 7,320,666 1,194,675 16.3% 19,301 1,213,976 16.6% 17.4% 54,493 33,768 - - 107,251 80,000 $2.15 Q2-16 7,320,666 1,249,168 17.1% 23,007 1,272,175 17.4% 17.2% 1,095 (20,725) - - 80,251 107,000 $2.14 Q1-16 7,320,666 1,250,263 17.1% 6,955 1,257,218 17.2% 16.9% (21,820) (21,820) - - - 291,931 $2.18 36 Las Vegas Research & Forecast Report Q3 2017 Medical Office Colliers International

Research & Forecast Report LAS VEGAS HOTEL Q3 2017 The Lazy Summer > > Hospitality sales rebounded in the third quarter of 2017, but remained light overall > > Visitor volume continued to lag just behind 2016 s record > > Room inventory growth remains light, with increased development expected in 2019 The trend of decreasing hospitality sales continued into the third quarter of 2017, though on a quarter-over-quarter basis, there was improvement. Sales of hospitality peaked in 2014 at 7,614 units sold that year, and have headed downward since, with 4,776 units trading in 2016. So far in 2017, 3,637 units of hospitality have sold, meaning that without a large sale to round out the year, 2017 will probably have fewer sales than 2016. Over the past decade, big sales years have occurred in 2010 and 2014. That puts 2018 on schedule for another big year, provided investors can be convinced to play along. Visitor volume in the first seven months of 2017 was 25.1 million visitors, just a bit shy of the 25.4 million visitors to Las Vegas in the first seven months of 2016. Gaming revenue, on the other hand, was Economic Indicators AIR Passengers +3.8% Market Indicators Relative to prior period Q3 2017 Q4 2017* Room Inventory Room Occupancy Average Daily Rate Revenue Per Available Room *Projected CONVENTION Attendance +33.4 RevPAR +6.5% July 2017 Revenue Per Available Room (RevPAR) $125.00 $120.00 $115.00 $110.00 $105.00 $100.00 Summary Statistics Las Vegas Market Q3 2016 Q2 2017 Q3 2017 Room Inventory 141,423 141,516 141,685 Room Occupancy 92.0% 90.8% 94.5% Average Daily Rate $122.95 $124.70 $125.97 Revenue Per Available Room $113.19 $113.19 $119.04 $95.00 4 Q 2015 1 Q 2016 2 Q 2016 3 Q 2016 4 Q 2016 1 Q 2017 2 Q 2017 3 Q 2017 Should the hospitality market continue to be healthy, and the national economy healthy along with it, we think hospitality sales will improve as 2017 wears on.

slightly stronger in 2017 than 2016, with $5.85 billion taken in in the first seven month of 2017 compared to $5.68 billion in the first seven months of 2016. The average daily room rate (ADR) and revenue per available room (RevPAR) were also up year-over-year. Room inventory did not increase in any meaningful way so far in 2017, and it should remain stable for the remainder of the year. Gaming revenue in the first seven months of 2017 posted 2.8 percent year-over-year growth for Clark County as a whole, and 1.3 percent growth on the Las Vegas Strip in particular. The Downtown submarket had very strong 14.7 percent gaming revenue growth year-over-year and the Boulder Strip, which mostly plays host to local casino patrons, posted 3.6 percent gaming revenue growth. If these rates of growth continue through 2017, we should see a solid improvement in gaming revenue, the one hospitality factor that has lagged behind the others since the end of the recession. Room inventory did not expand in the third quarter of 2017. Year-todate completions stood at 220 units, very mild expansion for Southern Nevada s hospitality market. Resorts World Las Vegas remained under construction, with completion of the first phase planned for 2019, along with Steve Wynn s 1,000-room Paradise Park project that will be constructed on the former site of the Desert Inn Golf Course. The recent purchase of the Fontainebleau Resort, on which construction halted during the Great Recession, brings it back into play as a potential addition to inventory. The Edge, an extreme sports resort is also proposed for the south Strip area. Several limited service hotels are now under construction or planned to begin construction in the valley, including Heritage Inn, Homewood Suites, TownePlace Suites, Home2Suites, TRU Hotel by Hilton and a Starwood hotel near the Las Vegas Speedway. Sales Volume $500,000,000 $450,000,000 $400,000,000 $350,000,000 $300,000,000 $250,000,000 $200,000,000 $150,000,000 $100,000,000 $50,000,000 $0 Sales vs. Price Per Unit 3,500 3,000 2,500 2,000 1,500 1,000 500 0 Sales Volume 4 Q 2015 1 Q 2016 2 Q 2016 3 Q 2016 4 Q 2016 1 Q 2017 2 Q 2017 3 Q 2017 Sales vs. Price Per Unit 4 Q 2015 1 Q 2016 2 Q 2016 3 Q 2016 4 Q 2016 1 Q 2017 2 Q 2017 3 Q 2017 Sales (Units) Average Price Per Unit $2,100,000 $1,800,000 $1,500,000 $1,200,000 $900,000 $600,000 $300,000 $0 After heavy non-gaming development in 2016, Southern Nevada is slated in the near future to have a $75 million renovation of Caesars Palace s original Roman Tower, a $47 million renovation of the Thomas Market Health Data Point 2013 2014 2015 2016 2017 YTD* Visitor Volume (millions) 39.9 41.6 42.3 43.2 25.1 Room Occupancy 84.3% 86.8% 87.7% 89.1% 91.2% ADR (Monthly Average) $110.64 $116.48 $119.94 $125.90 $129.99 RevPAR (Monthly Average) $93.27 $101.05 $105.21 $112.28 $118.55 Convention Attendance (millions) 5.11 5.17 5.71 6.31 4.06 Passengers McCarran Int l (millions) 41.8 42.9 45.3 47.4 28.1 Gaming Revenue (Clark County; billions) $10.0 $9.6 $9.6 $9.7 $5.8 Gaming Revenue ( Strip ; billions) $6.5 $6.4 $7.5 $6.4 $3.8 Data from Las Vegas Convention & Visitors Authority * Data up to July 2017 38 Las Vegas Research & Forecast Report Q3 2017 Hospitality Colliers International

& Mack Center, a $130 million expansion of the LVCVA s convention space and the rebranding and renovation of the Monte Carlo Resort & Casino to the Park MGM & NoMad Las Vegas. Construction has finished on the NHL Las Vegas Golden Knight s practice facility in Summerlin, and there is activity on the site of the soon-to-be NFL Las Vegas Raider s new stadium. In all, we expect approximately $1.2 billion spent on hospitality development in 2017 and 2018, and an additional $11.3 billion of development in 2019 and beyond. Hospitality sales were light so far in 2017 in terms of sales volume and price per unit, following a very robust year for hospitality sales in 2016. A total of 3,476 rooms sold in the first three quarters of 2017, with total sales volume of $389.9 million and an average sales price of $112,168 per room. In June, the forthcoming sale of the Stratosphere and both Arizona Charlie s locations to Golden Entertainment was announced. The deal was reported to involve $781 million in cash and 4 million shares of Golden Entertainment stock to Whitehall Street Real Estate Partners 2007. Golden Entertainment already owns and operates casinos in Pahrump, NV. Southern Nevada has put up solid growth in the hospitality sector over the past five years, and that is, so far, not translating into heavy sales activity. There are some signs that the post-recession tourism boom is cooling in 2017, but heavy investment into the entertainment sector and the entry of professional sports franchises into the entertainment capital of the world could usher in the next boost in visitation. Heavy hospitality sales in Southern Nevada come in waves, and it is very possible that sales will rebound in 2018. Hospitality Sales* Year Volume Units Sold Price Per Unit 2017 YTD $168.4 MM 3,129 $54,000 2016 $1,182 MM 4,415 $268,000 2015 $466 MM 5,445 $86,000 2014 $2,001 MM 7,614 $263,000 2013 $61 MM 1,335 $46,000 2012 $160 MM 3,120 $51,000 2011 $3,005 MM 7,507 $400,000 2010 $858 MM 8,883 $97,000 * Only includes properties with 100 or more units, arm s-length sales 39 Las Vegas Research & Forecast Report Q3 2017 Hospitality Colliers International

Significant Hotel Sale Activity NORTHWEST 215 NORTH LAS VEGAS Aliante Hotel and Casino Casino Hotel - $380,000,000 202 Units - $1,881,000/Unit 95 September 2016 Casino Hotel - North Vegas 15 Fontainebleau Resort Resort Corridor - $600,000,000 3,889 Units - $154,000/Unit August 2017 SUMMERLIN WEST CENTRAL DOWNTOWN RESORT CORRIDOR EAST LAS VEGAS Casino Hotel - Strip Eastside Cannery Resort Corridor - $139,000,000 THE STRIP 95 307 Units - $453,000/Unit December 2016 Casino Hotel - East Vegas 215 AIRPORT Tropicana Las Vegas Casino Hotel - $360,000,000 SOUTHWEST SOUTH LAS VEGAS HENDERSON 1,497 Units - $240,000/Unit December 2015 Casino Hotel - Strip Palms Casino Resort Resort Corridor - $315,500,000 711 Units - $440,000/Unit October 2016 Casino Hotel - Resort Corridor Sale Activity Continued Property Name Sale Date Units Price Price/Unit Submarket Property Type Cannery Hotel & Casino Dec 2016 201 $91,000,000 $453,000 North Vegas Casino Hotel Marriott Springhill Jul 2017 299 $50,500,000 $169,000 Resort Corridor Full Service The Orleans Hotel Feb 2017 1,885 $43,000,000 $23,000 West Vegas Casino Hotel Embassy Suites Jul 2017 286 $31,100,000 $109,000 Resort Corridor Full Service Serene Vegas Jan 2017 150 $15,500,000 $103,000 Resort Corridor Full Service * Indicates a redevelopment sale 40 Las Vegas Research & Forecast Report Q3 2017 Hospitality Colliers International

Market Comparisons - Las Vegas Hospitality Market TYPE TOTAL INVENTORY (UNITS) TOTAL SALES (UNITS) TOTAL SALES VOLUME AVERAGE SALES PRICE PER UNIT COMPLETIONS CURRENT QUARTER (UNITS) COMPLETIONS YTD (UNITS) CURRENT DEVELOPMENT (UNITS) DOWNTOWN CAS 7,428 - $0 n/a - - - FS - - $0 n/a - - - LS 204 - $0 n/a - - - Total 7,632 - $0 n/a - - - LAS VEGAS STRIP CAS 80,185 - $0 n/a - 19 8,389 FS 5,450 - $0 n/a - - - LS 2,224 - $0 n/a - - - Total 87,859 - $0 n/a - 19 8,389 RESORT CORRIDOR CAS 11,436 - $0 n/a - - - FS 4,004 585 $81,634,194 $139,546 - - - LS 5,939 - $0 n/a - - - Total 21,379 585 $81,634,194 n/a - - - AIRPORT CAS - - $0 n/a - - 640 FS - - $0 n/a - - - LS 1,009 - $0 n/a - - 166 Total 1,009 - $0 n/a - - 806 EAST LAS VEGAS SUBMARKET CAS 1,703 - $0 n/a - - - FS - - $0 n/a - - - LS 3,058 - $0 n/a - - - Total 4,761 - $0 n/a - - - HENDERSON SUBMARKET CAS 2,035 - $0 n/a - - - FS 732 - $0 n/a - 51 - LS 1,465 - $0 n/a - - - Total 4,232 - $0 n/a - 51 - NORTH LAS VEGAS SUBMARKET CAS 987 - $0 n/a - 150 - FS - - $0 n/a - - - LS 1,280 - $0 n/a - - 125 Total 2,267 - $0 n/a - 150 125 SOUTH LAS VEGAS SUBMARKET CAS 2,463 - $0 n/a - - - FS - - $0 n/a - - 211 LS 1,404 - $0 n/a - - - Total 3,867 - $0 n/a - - 211 SUMMERLIN SUBMARKET CAS 1,770 - $0 n/a - - - FS 123 - $0 n/a - - - LS 515 - $0 n/a - - - Total 2,408 - $0 n/a - - - WEST CENTRAL SUBMARKET CAS 3,425 - $0 n/a - - - FS 118 - $0 n/a - - - LS 2,728 - $0 n/a - - 574 Total 6,271 - $0 n/a - - 574 MARKET TOTAL CAS 111,432 - $0 n/a - 169 9,029 FS 10,427 585 $81,634,194 $139,546-51 211 LS 19,826 - $0 n/a - - 865 Total 141,685 585 $81,634,194 $139,546-220 10,105 QUARTERLY COMPARISON AND TOTALS Q3-17 141,685 585 $81,634,194 $139,546 0 220 10,105 Q2-17 - 194 $14,225,000 $73,325 169 220 5,670 Q1-17 141,685 2,697 $294,035,872 $109,023 51 51 5,670 Q4-16 141,634 1,072 $342,690,000 $319,674 42 166 5,521 Q3-16 141,592 202 $380,000,000 $1,881,188 124 124 6,137 Q2-16 141,468 334 $23,600,000 $70,659 0 0 4,167 Q1-16 141,468 3,168 $465,543,841 $146,952 0 0 4,925 Q4-15 141,468 - $0 n/a 0 2,376 3,634 Q3-15 141,468 958 $151,000,000 $157,620-410 2,376 3,634 41 Las Vegas Research & Forecast Report Q3 2017 Hospitality Colliers International

Research & Forecast Report LAS VEGAS LAND Q3 2017 Land Values Rise > > 2017 continued to lag behind 2016 in terms of land sales > > The overall average price per square foot decreased due to a large sale of industrial land > > Strong development of industrial and multifamily projects should continue through 2018 Southern Nevada s land market saw 54 sales in the third quarter of 2017. A total of 904 acres were sold with sales volume of $90.7 million and an average price per square foot of $2.30. Sales volume was done on a quarter-over-quarter basis, despite more acres being sold in the third quarter than the second quarter. The jump in acres sold was due to the sale of a large industrial parcel, which was also the cause of the average price per square foot falling from $11.10 in the second quarter of 2017. Compared to one year ago, sales, acres sold and sales volume were all up, and price per square foot was down. With the end of the year in sight, 2017 appears likely to equal 2015 in terms of overall sales activity, but fall behind 2016. This is not necessarily something to worry about, as 2016 s sales activity was boosted by large sales of industrial land at Apex, the type of sales that do not occur every year. Some of that Apex land was slated for the manufacture of electric vehicles, a factory that will not now be constructed and therefore a sale that will not likely begin a trend of large parcel sales for manufacturing. Ignoring oddball 2016, we see a general trend of reduced sales activity year-over-year. 2017 looks as though it will continue this trend in all respects except one, price per square foot. It is certainly possible that higher asking prices by land owners are depressing land sales by developers, investors and users, though this is not necessarily the case. Large, contiguous spaces are less common than they were before, necessarily increasing the price per square foot of land in the Valley. Economic Indicators Market Indicators Relative to prior period Q3 2017 Q4 2017* NO. SALES ACREAGE SOLD SALES VOLUME PRICE PER SQUARE FOOT *Projected Land Sales Activity 2,000 1,800 1,600 1,400 1,200 1,000 COMMERCIAL Forward Supply -0.7 Percent RESIDENTIAL Permits +16.0 Percent Land Sales Activity INDUSTRIAL Forward Supply +54.7 Percent $12.00 $11.00 $10.00 $9.00 $8.00 $7.00 Occupancy in industrial buildings increased to 95.1 percent in the third quarter of 2017 due to robust demand for the new industrial product entering the market and continued strong demand for existing properties. A total of 5.2 million square feet of industrial space was completed in the first three quarters of 2017 on 662 acres. An additional 9.6 million square feet of industrial space is either under construction or planned on 874 acres of land. In the first three quarters of 2017, 711 acres of industrial land was sold with total sales volume of $45.7 million. The average sales price of industrial land was $1.36 psf, a significant increase from 2016 due to the impact of those large parcel sales at Apex in 2016. 800 600 400 200 0 Q4-15 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Acres Sold Price Per Square Foot $6.00 $5.00 $4.00 $3.00 $2.00