Market Overview New York Capital Markets

Accelerating success. Market Overview New York Capital Markets

Market Snapshot Market Snapshot - Manhattan Capital Markets - Manhattan Leasing Market 2

Overview Near Record Activity Continues in 2016: 2016 was an exceptionally strong sales year for Manhattan, 502 deals totaling $42.9 billion. Multifamily Dominates Activity: Quickly has become the most active investment asset class, accounting for 217 transactions, or 43% of all activity. Garnering attention from institutional investors across the globe due to the supply/demand imbalance and secure cash flow. Capital Values Continue Steady Upward Trend: Nearly every product type has witnessed an increase in year-over-year capital values. Midtown Class A office values up nearly 3% to $1,124 per square foot with an average cap rate of 4%. Midtown Class B office values up 14% to $882 per square foot this year with an average cap rate of 3.5%. Land pricing under pressure due to condo supply side concerns and challenging construction financing. Condominium Pricing Sets New Records: Manhattan condos at record $2,209 PSF after 13% year-over-year increase. Large Transactions Capture Significant Market Share: 16 transactions greater than $500 million, eight of which exceeded $1 billion. The 16 largest deals of the year accounted for $16.5 billion, or 38%, of all dollar volume. Seven of those were partial interest deals, reflecting owner confidence in the long-term appreciation of New York City real estate. Foreign Participation Continues: 2015 saw foreign participation rise to 45% ($15 billion) more than double the historic 10% to 20% range. 2016 saw 40% ($17.28 billion) of investment attributed to foreign investors. 3

2016 Closed Manhattan Investment Sales Activity Total Size Product Type # of Deals % of Deals Square Feet Units / Keys Total Dollars % of Dollars Average Deal Size Avg / SF or Unit or Key Multifamily 217 43.2% 13,862,152 16,545 $8,011,800,075 18.7% $36,920,738 $643 / $571,073 Office 90 17.9% 37,815,240 $21,867,803,003 50.9% $242,975,589 $898 Land 90 17.9% 7,728,899 $4,684,796,511 10.9% $52,053,295 $665 Retail 51 10.2% 1,555,457 $2,474,926,758 5.8% $48,527,976 $2,317 Hotel 36 7.2% 8,167 $4,083,442,637 9.5% $113,428,962 $585,501 Other 18 3.6% $1,821,464,600 4.2% $101,192,478 TOTAL 502 100% 60,961,748 24,712 $42,944,233,585 100% $85,546,282 Under Contract 10 $2,085,750,235 Closed & Under Contract $45,029,983,820 Psf calculations exclude leasehold interest positions, bankruptcy auctions and multifamily rent controlled portfolios. 4

2016 Manhattan Multifamily Investment Sales Activity By Submarket Uptown Midtown South Midtown Downtown Total Total # of Deals 101 59 52 5 217 Total Units 6,775 3,367 4,792 1,611 16,545 Total Dollar Volume $2,007,352,232 $2,370,659,619 $2,725,282,009 $908,506,215 $8,011,800,075 Avg Price Per Unit $339,488 $704,086 $779,090 $563,939 $571,073 Total Square Feet Sold 5,406,136 2,927,298 4,166,043 1,362,675 13,862,152 Avg Deal Size $19,874,774 $40,180,672 $52,409,269 $181,701,243 $36,920,734 Avg Price PSF $373 $818 $863 $667 $643 Uptown properties are north of 125th Street 5

2016 Manhattan Office Investment Sales Activity By Submarket Midtown Class A Midtown Class B Midtown South Downtown Uptown Total Total # of Deals 14 32 26 15 3 90 Total Sq Ft 17,241,928 4,023,191 3,426,114 11,505,409 195,567 37,815,240 Total Dollar Volume $12,622,664,000 $2,662,868,250 $2,867,518,970 $3,891,751,783 $96,000,000 $22,140,803,003 Avg Price PSF $1,124 $882 $837 $565 $491 $898 Avg Deal Size $901,618,857 $83,214,632 $110,289,191 $259,450,118 $32,000,000 $246,008,922 2016 Manhattan Land/Redevelopment Investment Sales Activity By Submarket Midtown Midtown South Downtown Uptown Total Total # of Deals 52 29 5 4 90 Total Sq Ft 4,857,233 1,286,749 358,582 1,226,335 7,728,899 Total Dollar Volume $3,007,832,876 $1,144,008,065 $225,000,000 $307,955,570 $4,684,796,511 Avg Price PSF $633 $889 $669 $402 $665 Avg Deal Size $57,842,940 $39,448,553 $45,000,000 $76,988,892 $52,053,295 Uptown properties are north of 125 th Street 6

2016 Manhattan Retail Investment Sales Activity By Submarket Midtown South Midtown Downtown Uptown Total Total # of Deals 29 13 5 4 51 Total Sq Ft 375,790 659,122 56,645 464,900 1,556,457 Total Dollar Volume $956,196,840 $1,277,649,891 $92,650,000 $148,430,027 $2,474,926,758 Avg Price PSF $2,632 $3,4941 $1,635 $503 $2,317 Avg Deal Size $32,972,304 $98,280,760 $18,530,000 $37,107,506 $48,527,795 2016 Manhattan Hotel Investment Sales By Submarket Midtown Midtown South Downtown Total Total # of Deals 19 12 5 36 Total Keys 4,289 2,895 983 8,167 Total Dollar Volume $2,453,129,134 $1,142,797,718 $487,515,785 $4,083,442,637 Avg Price Per Key $690,907 $450,189 $532,513 $585,501 Avg Deal Size $129,112,059 495,233,143 $97,503,157 $113,428,962 Uptown properties are north of 125 th Street 7

Unemployment Rate US/NYC MSA/Manhattan 10.5 9.5 8.5 % Unemployment 7.5 6.5 5.5 4.5 NYC MSA: 5.4% Manhattan: 4.8% US: 5.0% 3.5 3Q2016 4Q2014 1Q2014 2Q2013 3Q2012 4Q2011 1Q2011 2Q2010 3Q2009 4Q2008 1Q2008 2Q2007 3Q2006 2005Q2 2004Q3 2003Q4 2003Q1 2002Q2 2001Q3 2000Q4 United States NYC Metropolitan Statistical Area Manhattan Source: Moody s.com 8

New York Market Perspective New Office Building Construction by Decade Average = 63.6 MSF per decade 71 Million SF 270 Park Ave - 1,132,460 Square Feet (millions) 1285 Sixth Avenue - 1,473,950 643 West 43rd St - 1,128,000 1 Chase Manhattan Plaza- - 1,898,158 399 Park Ave - 1,250,000 60 Broad St - 1,014,041 200 Park Ave - 2,254,274 1290 Sixth Avenue - 1,987,328 277 Park Ave - 1,529,945 1301 Sixth Avenue - 1,764,411 59 Maiden Ln - 1,043,007 245 Park Ave - 1,611,046 26 Federal Plaza- 1,109,969 140 Broadway - 1,200,000 909 Third Ave - 1,125,000 767 Fifth Ave - 1,637,379 1345 Sixth Avenue - 1,640,000 2 Penn Plaza- - 1,500,000 1 NY Plaza- -2,103,750 345 Park Ave - 1,600,519 450 West 33rd St - 1,500,000 62 Million SF 153 East 53rd St - 1,492,860 1166 Sixth Avenue- 1,430,000 1211 Sixth Avenue- - 1,734,105 1 Bankers Trust Plaza- - 1,363,334 1633 Broadway - 2,240,000 1 Penn Plaza- - 2,072,136 1 Liberty Plaza- - 2,121,437 55 Water St - 3,600,000 9 West 57th St - 1,500,000 1114 Sixth Avenue- - 1,310,000 1185 Sixth Avenue- - 1,000,000 1221 Sixth Avenue- - 2,200,000 1251 Sixth Avenue- - 1,893,652 1515 Broadway - 1,417,450 1 WTC - 3,958,091 2 WTC - 3,958,091 2 NY Plaza- - 1,345,919 58 Million SF 237 Park Ave - 1,142,196 55 East 52nd St - 1,050,000 101 Park Ave - 1,137,000 590 Madison Ave - 1,016,413 335 Madison Ave - 1,046,984 85 Broad St - 1,040,000 101 Barclay St - 1,140,000 787 Seventh Ave - 1,429,610 1 WFC - 1,461,365 3 WFC - 2,300,000 4 WFC - 1,600,000 2 WFC - 2,200,000 7 WTC - 1,855,000 Financial Sq - 1,000,301 825 Eighth Ave - 1,550,212 388 Greenwich St - 1,600,000 Inventory reduced by 31 MSF due to World Trade Center (15 MSF) and residential conversions (16 MSF) Average = 14.2 MSF per decade 10 Millions SF 60 Wall St - 1,587,849 1585 Broadway - 1,220,732 4 Times Square - 1,477,631 21 Million SF 383 Madison Ave - 1,200,000 745 Seventh Ave - 1,036,741 5 Times Square - 1,062,203 Columbus Center - 1,016,000 731 Lexington Ave 1,300,000 300 Madison Ave - 1,200,000 7 Times Square - 1,000,000 7 WTC - 1,700,000 1101 Sixth Avenue- - 2,100,000 620 Eighth Ave - 1,500,000 11 Times Square 1,100,000 200 West Street 2,000,000 450 W 14 th Street 135,000 51 Astor Place 430,000 50 W 47 th Street 745,000 540 Madison 300,000 1 WTC 3,500,000 4 WTC 2,300,000 250 West 55 th St 1,050,000 7 Bryant Park 470,000 11.56 Million SF 1960s 1970s 1980s 1990s 2000s 2010 - Present Net addition to supply over past 3 decades (1990 s + 2000 + 2010-Present) = 3.9 MSF per decade. New office development is concentrated in Downtown and the Far West Side. Note: Total construction square footage includes all new office buildings above 100,000 SF. Source: Colliers International Research 9

New York Market Perspective Pipeline of New Office Building Construction by Year Year Expected Delivery (SF) Additions to Supply (%) Pre Leased SF Net New Space Available 2017 2,551,000 0.5% 561,000 1,990,000 2018 5,800,000 1.1% 2,369,000 3,431,000 2019 5,081,000 1.0% 3,515,000 1,566,000 2020 640,000 0.1% 0 640,000 2021 1,623,000 0.3% 223,000 1,400,000 SUBTOTAL PRE 2021 15,700,000 3.0% 6,672,000 9,028,000 2022 & Beyond 18,100,000 3.5% 1,700,000 16,400,000 NYC is witnessing a much needed construction boom to modernize its office stock. Despite the new construction, the additions to supply equal less than 6% of the total market. Source: Colliers International Research 10

Manhattan Availability Horizon (4Q2016) 18,000,000 Numerous planned construction projects are awaiting anchor tenants 16,000,000 14,000,000 12,000,000 Square Feet 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 0 2017 2018 2019 2020 2021 2022 TBD Uncommitted New Construction/Renovation Planned Construction Future Known Availability 11

Annual Investment Sales Activity Total Sales Activity US $ billions $70 $60 $50 $40 $30 $20 $340 (12) $421 (9) Midtown and Midtown South Downtown Weighted Average Midtown Class A Office Price PSF # of Class A Transactions $443 (15) $475 (17) $434 (14) $549 (15) $749 (28) $875 (41) $941 (15) $335 (2) $590 (10) $836 (7) $743 (7) $1,083 (15) $1,344 (6) $1,096 (21) $1,124 (14) Price PSF $1,600 $1,400 $1,200 $1,000 $800 $600 $400 $10 $200 # of Deals Volume ($B) 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 111 78 58 83 165 170 259 346 191 66 136 245 275 223 442 589 502 $10.3 $12 $8.5 $10 $15 $21 $35 $48.5 $19.6 $3.5 $12.4 $25 $25 $30.2 $39.8 $60.3 $42.9 Numbers in parentheses represent the number of Class A transactions each year. In 2015, 8 of the 21 Class A transactions were for a partial interest. In 2016 7 of the Class A sales were for a partial interest. Source: Colliers International Research 12

Annual Investment Sales by Investor Profile Based on 2013 Total Sales of $30.2 Billion Based on 2014 Total Sales of $39.8 Billion Pension Fund 10% Pension Fund 3% Private Capital 61% REIT 13% Private Capital 63% REIT 15% Foreign 16% Foreign 19% Based on 2015 Total Sales of $60.3 Billion Based on YTD 2016 Sales of $42.9 Billion Foreign 45% Private Capital 46% Pension Fund 6% REIT 3% REIT 11% Private Capital 44% Foreign 40% User 5% NYC remains the primary investment market. Foreign activity remains strong, after a record participation rate in 2015. Source: Colliers New York Capital Markets 13

Foreign Capital Inflows 2016 Total Dollars Invested by Country $9,000,000,000 $8,000,000,000 $7,000,000,000 $7.7 B $17.28B = 40% of $ invested 62 transactions = 12% of total transactions $6,000,000,000 $5,000,000,000 $4,000,000,000 $3,000,000,000 $3,100 M $2,000,000,000 $1,730 M $1,400 M $1,000,000,000 $578 M $565 M $523 M $378 M $264 M $219 M $173 M $158 M $150 M $138 M $124 M $59 M $18 M Source: Colliers New York Capital Markets Note: The only countries to date with multiple Manhattan transactions are Canada (4), China (16) and Germany (3). Excludes Saudi Arabia which closed one deal for $1.4 Billion. 14

Midtown Class A Cap Rates vs. Rent Growth & 10-Yr Treasuries Weighted Average Cap Rates, 2000 2016 Cap Rate 10-Yr Treasury 10.00% 10.00% 9.00% 9.00% 8.00% 7.30% 7.58% 7.34% 8.00% 7.00% 6.00% 5.00% 4.00% 6.20% 5.40% 5.10% 6.34% 4.93% 4.64% 4.70% 5.10% 4.90% 4.04% 3.55% 4.45% 5.85% 5.24% 4.40% 4.60% 4.30% 3.88% 3.79% 4.00% 7.00% 6.00% 5.00% 4.00% 3.00% 2.00% 1.00% 3.40% 3.90% 3.90% 3.70% 3.30% 2.90% 1.50% 2.10% 2.50% 2.19% 2.45% 3.00% 2.00% 1.00% 0.00% Y-O-Y rent growth 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 24% (4%) 11% (7%) 7% 4% 18% 29% 1% (27%) 1% 8% 3% 4% 2% 3% 2% Note: 10-Yr Treasury as of June for each year (does not include the spread) except 2016 which is year-end. Interest rates witnessed the first meaningful increase in five years during Q4 16 both organically and through a Fed rate hike All signs point to an additional rate hike by the Fed during the first quarter of 2017. 0.00% Source: Colliers New York Capital Markets 15

Manhattan Class B Historical Office Sales $6 B $5 B $4 B $3 B $2 B $1 B $314 Midtown Class B Historical Office Sales $603 $577 $581 $480 $882 $1,000 $900 $800 $700 $600 $500 $400 $300 $200 $100 $7 B $6 B $5 B $4 B $3 B $2 B $1 B Midtown South Class B Historical Office Sales $796 $742 $591 $481 $406 $379 $900 $800 $700 $600 $500 $400 $300 $200 $100 B 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 B 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 $ Volume Average Price PSF $ Volume Average Price PSF Downtown Class B Historical Office Sales $6 B $5 B $4 B $3 B $2 B $1 B B $514 $446 $387 $274 $214 $107 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 $600 $500 $400 $300 $200 $100 Class-B office values continue to witness appreciation as tenants in the fastest growing industries seek space in vintage, loft style buildings clustered amongst other tenants in their respective industries. $ Volume Average Price PSF 16

Historical Land Sale Pricing vs. Residential Condominium Pricing Average Land Sale Price PSF Average Condo Price PSF $700 Average land sales PSF Average condo PSF $665 $2,500 $636 $2,209 $600 $559 $596 $1,959 $2,000 $500 $400 $431 $428 $1,142 $1,225 $466 $1,374 $410 $1,210 $357 $1,167 $1,229 $375 $1,275 $1,369 $1,529 $1,500 $300 $314 $1,000 $200 $500 $100 # of Land Sales # of Condo Sales 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 56 71 43 5 22 57 70 39 102 130 90 4,186 6,969 5,713 4,029 5,240 5,05 4,330 5,021 5,050 5,147 5,433 Residential condominium pricing represents the average for both new and resale condominium units. Source: Elliman Decade Report and Colliers New York Capital Markets 17

Historical Land Sale Pricing by Submarket $1,000 $900 $800 $700 $600 $500 $400 $300 $200 $100 Midtown South $889 $795 $735 59 $467 $462 $421 $437 $398 $382 $440 29 $332 32 14 2 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 70 60 50 40 30 20 10 0 $700 $600 $500 $400 $300 $200 $100 Midtown $662 $601 60 $633 $600 51 50 $472 45 $450 $445 40 $402 $385 $354 $355 33 30 23 20 10 3 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Price Per SF Number of deals Price PSF Number of deals $800 $700 $600 $500 $400 $300 $200 $100 Downtown 20 $669 $517 15 $501 $451 $415 $448 $371 9 $293 $308 $214 5 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 25 20 15 10 5 0 $700 $600 $500 $400 $300 $200 $100 Overall Market $636 $665 140 $596 $559 120 $466 130 100 $431 $428 $410 90 $375 $357 80 $314 70 60 56 40 20 5 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Price PSF Number of deals Price PSF Number of deals Source: Colliers New York Capital Markets 18

Notable Manhattan Transactions 1250 Broadway Office 721,000 SF Seller: Jamestown Buyer: Global Holdings $565,000,000 $784 PSF Blockfront between West 31 st and 32 nd Streets 84% occupied Anchor tenant is Visiting Nurse Service, who occupy 320,000 square feet through 12/18. VNS will be leaving the property upon their expiration. Acquisition was financed with a $330 MM loan from HSBC. 441 Ninth Avenue Land/Development 515,000 BSF Seller: Emblem Health Buyer: Cove Property Group JV Baupost $330,000,000 $641 PBSF Occupies a full City block fronting Ninth Avenue between 34 th and 35 th Streets. Building is currently home to Emblem Health, who occupies the 423,000 SF building and will move out in one year. Site can be redeveloped to 515,000 SF. Plans call for a full redevelopment with portion of the ground floor to be converted to retail. 63 Wall Street Multifamily 476 Units Seller: MetroLoft JV DTH Capital Buyer: Rockpoint Group $239,114,603 $502,342 Per Unit Corner of Wall and Hanover 4.8% going-in cap rate. Average in-place rent is $60.11 per square foot. Benefits from a 421-g through June 2020. Unit mix includes 170 studios, 143 studios with office, 124 one bedrooms, 22 one bedrooms with office and 17 two bedrooms. 371 Seventh Avenue (Stewart Hotel) Hotel 618 Keys Seller: Pebblebrook Hotel Trust Buyer: A&B Sons JV Sioni Group JV Highgate $217,500,000 $351,942 per key 4.1% going-in cap rate. The hotel totals 470,000 square feet ($460 per square foot). The hotel ownership was consolidated by Pebblebrook and then sold. 133 Greenwich Street (Courtyard by Marriott) Hotel 317 Units Seller: Hidrock Realty Buyer: Union Investment $206,000,000 $649,842 per Unit Located at Thames and Greenwich The brand new hotel was designed by Peter Poon and is situated at the foot of the World Trade Center. Hidrock will retain the retail component of the property totaling 2,600 square feet. September 2016 September 2016 September 2016 December 2016 December 2016 19

Notable Manhattan Transactions 67 Wall Street (The Crest) Multifamily 317 Units Seller: Metroloft JV DTH Capital Buyer: Rockpoint Group $182,391,612 $575,638 Per Unit Located on the corner of Pearl and Wall. 4.8% going-in cap rate Property benefits from a 421-g through June 2020. Unit mix includes 131 studios, 91 one bedrooms, 79 one bedrooms with office, 25 two bedrooms and 5 two bedrooms with office. 292 Madison Office 203,000 SF Seller: Marciano Brothers Buyer: Vanbarton Group $180,000,000 $887 PSF Located at 41 st Street and Madison Avenue. 2.1% going-in cap rate. Major tenants at the property include Buford Capital and Hogg Robinson. The acquisition was financed with a $75 million loan from DB. 240 West 35th Street Office 165,720 SF Seller: RPW Group Buyer: ATCO Properties $108,000,000 $652 PSF Between 7 th and 8 th Avenues. 96% occupied 4.35% going-in cap rate. 65% of the square footage rolls within the first five years. Recently renovated corridors, elevators and restrooms. 145 East 57th Street Office and Retail 64,190 SF Seller: MIP Buyer: ABS Partners JV Benenson $62,750,000 $978 PSF Between Lexington and Third Avenues. Office space is 63% occupied 2.5% going-in cap rate. The retail space is leased to Hammacher Schlemmer at $200 psf. The property is undergoing a $10 million renovation. 53 West 36th Street Office 82,196 SF Seller: Hidrock Realty JV Assurant Buyer: Effy Jewelery $54,000,000 $657 PSF Between Fifth and Sixth Avenues 4.3% going-in cap rate. In-place rents are $44.00 per square foot. Property recently underwent a $3.2 million capital improvement program. 75% of the square footage rolls in the next five years. September 2016 October 2016 December 2016 October 2016 October 2016 20

Market Snapshot Market Snapshot - Manhattan Capital Markets - Manhattan Leasing Market 21

Overview Leasing Activity Up 5.5% Y-O-Y: At 33.10 MSF, Manhattan full-year leasing activity was 5.5% higher year-over-year. 2016 also surpassed full year leasing from eight of the last ten years. Only 2014 s 37.38 MSF and 2013 s 33.92 MSF topped leasing volume in 2016. FIRE (financial services, insurance and real estate) sector leads the way: Accounting for 31% of all activity Major FIRE activity in 2016 included UBS renewal at 1285 Avenue of the Americas, Two Sigma Investments 217,000 SF renewal/expansion at 100 Avenue of the Americas and a total of 808,000 SF of new leases and expansions from WeWork throughout Manhattan. Asking Rents Continue Upward Climb: At an average of $73.24/ SF, asking rents were 2.4% higher since year-end, 2015. Manhattan s Availability Rate Ticked Up 0.7pp (percentage points) to 10.3%: Large blocks of available space were added during the year, mostly as a result of new construction/major renovations. Sublet availability was higher for the year by 0.4pp to 1.8% but has remained at or below 2% for the last six years. First Year of Negative Net absorption Since 2009: The market witnessed (3.79 MSF) of absorption, relatively small in comparison to 2009 when it was (10.07 MSF). The four largest deals in 2016 were renewals or sale-leasebacks resulting in little impact to the absorption numbers. Demand in 2016 was Helped by Job Creation and Low Unemployment: Between November 2015 and November 2016, more than 61,000 new private sector jobs (a 1.6% increase) were added in New York City, higher than the 1.3% employment growth for New York State and on par with the 1.7% gain nationally during the same period. At 5.2%, New York City s unemployment rate through November 2016 was stable over the last 12 months. Sources: NYS Dept. of Labor, Colliers International Research 22

Current Office Market Statistics Market Inventory Availability Rate Average Asking Rent Midtown 236,122,551 10.7% $82.39 Midtown Class A 203,429,082 11.0% $85.09 Midtown Class B 28,101,556 9.5% $60.09 Midtown South 165,618,649 8.4% $67.81 Midtown South Class A 40,343,741 7.8% $81.72 Midtown South Class B 84,916,879 8.9% $66.04 Downtown 104,384,942 12.3% $59.01 Downtown Class A 79,469,698 13.6% $60.25 Downtown Class B 21,217,844 8.9% $52.30 Manhattan 506,126,142 10.3% $73.24 *Trophy designation is a subset of Class A 23

Yearly Comparison by Major Market Overall Availability Rates Class A Availability Rates 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% 10.7% 10.0% 10.7% 11.2% 2013 2014 2015 2016 8.4% 7.0% 7.9% 9.7% 12.3% 12.6% 11.7% 15.6% 10.3% 9.6% 10.0% 11.7% Midtown Midtown South Downtown Manhattan 20% 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% 11.0% 10.3% 11.3% 11.8% 2013 2014 2015 2016 7.8% 6.3% 6.4% 12.5% 13.6% 14.4% 13.3% 17.7% 11.2% 10.9% 11.3% 13.4% Midtown Midtown South Downtown Manhattan Overall Asking Rents Class A Asking Rents $90 $80 $70 $60 $50 $40 $30 $20 $82.39 $80.61 $74.78 $69.73 2013 2014 2015 2016 $67.81 $66.07 $61.50 $55.32 $59.01 $57.63 $52.23 $48.60 $73.24 $71.50 $66.52 $60.46 $90 $80 $70 $60 $50 $40 $30 $20 $85.09 $83.37 $76.65 $71.25 2013 2014 2015 2016 $82.39 $80.61 $74.78 $69.73 $60.25 $58.70 $54.10 $51.80 $78.19 $75.49 $70.48 $64.14 $10 $10 Midtown Midtown South Downtown Manhattan Midtown Midtown South Downtown Manhattan 24

Landlord Concessions by Year Tenant Improvements Free Rent C L A S S A PSF $70 $60 $50 $40 $30 $20 $10 Midtown Downtown $63.19 $65.92 $61.86 $63.10 $56.33 $58.72 $54.79 $48.82 $29.49 $37.68 $51.15 $50.84 2011 2012 2013 2014 2015 2016 Months 16 14 12 10 8 6 4 2 0 Midtown Downtown 9.1 9.6 9.7 9.4 14.2 7.8 9.7 7.3 5.8 5.5 7.9 7.8 2011 2012 2013 2014 2015 2016 PSF Months C L A S S B $60 $50 $40 $30 $20 $10 $22.51 $36.45 $33.87 $26.80 $30.74 $29.46 $35.21 $32.37 $37.81 Midtown Downtown Midtown South $47.93 $25.27 $49.61 $47.49 $32.16 $48.98 $46.50 $45.10 $53.77 9 8 7 6 5 4 3 2 1 4.6 6.8 5.6 5.5 6.0 4.5 5.9 3.6 6.3 Midtown Downtown Midtown South 6.9 6.5 8.0 6.4 5.1 4.4 6.3 5.5 5.8 2011 2012 2013 2014 2015 2016 0 2011 2012 2013 2014 2015 2016 25

Asking Rent vs. Starting Rent 4Q16 3Q16 4Q15 16% 14% 14.4% Starting Rent vs. Asking Rent Gap 12% 10% 8% 6% 4% 10.5% 7.2% 9.5% 7.4% 7.6% 7.3% 4.4% 2% 3.3% 0% Midtown Midtown South Downtown 26

Historical Absorption and Leasing Activity Absorption Leasing Activity 10.M 40M Midtown Downtown Midtown South 10 Year Rolling Average: 29.0 MSF 8.M 6.M 8.44M 35M 30M Square Feet 4.M 2.M.M -2.M 1.92M.45M 4.25M -3.85M Square Feet 25M 20M 15M 10M 5M -4.M M 27

Midtown Class A Asking Rent Adjusted for Inflation (CPI) $100 $95.00 $93.05 $90 $85.09 $80 $70 $66.39 $60 $50 $48.19 $40 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Recorded Asking Rent CPI Adjusted 2000 Rent 28

Midtown and Downtown Class A Asking Rents $100 Midtown Downtown 2003 2007: rent increase 2007 2009: rent decrease Midtown: +86% Downtown: +65% Midtown: -33% Downtown: -21% 2009 2016: rent increase Midtown: +41% Downtown: +52% $90 $80 $70 Asking Rent ($/SF) $60 $50 $40 $30 $20 $10 29

Leases greater than 100,000 SF 2016 2015 16 RENEWALS 4,540,954 SF 3 EXPANSIONS 487,434 SF 45 10,689,463 SF 22 4,919,181 SF TRANSACTIONS NEW/RELOCATIONS 40 7,986,934 SF 26 4,432,353 SF 7 RENEWALS 1,403,640 SF 0 EXPANSIONS 0 SF 4 RENEWAL & EXPANSIONS 741,894 SF 23 5,770,282 SF RENEWALS & EXPANSIONS 14 3,554,581 SF 7 RENEWAL & EXPANSIONS 2,150,941 SF 30

Leasing Activity MANHATTAN CAPITAL MARKETS 5,000-14,999 SF 15,000-24,999 SF 25,000-49,999 SF 50,000-99,999 SF 100,000 SF+ 11% 15% 4% 3% 4% 3% 13% 13% 32% 15% 16% By Number of Deals 62% 67% 17% By Share of Activity 25% *Excludes deals under 5,000 SF. 31

Taking Rents 250 $75.00 - $99.99 $100.00 - $149.99 $150.00 + 7 200 Number of Deals 150 100 50 7 2 42 30 88 91 8 39 100 16 33 126 58 155 13 41 131 0 2011 2012 2013 2014 2015 2016 32

Colliers New York Capital Markets Contact Information Richard Baxter Vice Chairman +1 212 716 3538 richard.baxter@colliers.com Yoron Cohen Vice Chairman +1 212 716 3532 yoron.cohen@colliers.com Scott Latham Vice Chairman +1 212 716 3525 scott.latham@colliers.com Stephen Shapiro Senior Managing Director +1 212 716 3590 stephen.shapiro@colliers.com Jason Gold Senior Managing Director +1 212 716 3620 jason.gold@colliers.com 33