Office Outlook. Indianapolis Q CBD occupancy grows while suburbs see investment

Office Outlook Indianapolis Q4 216 CBD occupancy grows while suburbs see investment

Office Overview Indianapolis Q4 216 The Indianapolis office consists of 31.8 million square feet in 331 buildings with a 19.8 million square foot suburban inventory and a 12. million square foot inventory in the CBD. The total vacancy rate for the office in fourth quarter 216 was 16.4 percent. In addition to the CBD, the bulk of the Class A and B office inventory is located in four major northern suburban subs - Keystone, North Meridian/Carmel, Northeast and Northwest. Fourth Quarter 216 Statistics Total Inventory YTD Net Absorption Vacancy Rate Full Service Class A Asking Rent Full Service Class B Asking Rent 31,818,29 sf -53,454 sf 16.4 % $21.97 psf $17.1 psf Trends (Q over Q) Vacancy Rate Concessions Rental Rates New Construction

s.f. thousands Keystone: The Keystone office consists of four major office parks Keystone at the Crossing, Woodfield Crossing, River Crossing, and the Precedent. The Keystone office provides high level suburban amenities with abundant dining, shopping and entertainment options. Inventory (sf) YTD Net Absorption (sf) Vacancy Rate Asking rent YTD Completions (sf) Under Construction (sf) Class A 3,283,647 55,26 15.3 % $22.2 psf 12, 55, Class B 768,823 16,495 7.8 % $18.41 psf Total 4,52,47 71,71 13.9 % $21.48 psf 12, 55, North Meridian/Carmel: The North Meridian/Carmel sub provides the best interstate access of the four major suburban office s with a full cloverleaf interchange at 96 th Street and I-465. Work is wrapping up on a limited access highway that will help ease congestion in the area. Three major medical campuses St. Vincent Carmel Hospital, the Heart Center of Indiana, and IU Health North Hospital are located in this sub. Inventory (sf) YTD Net Absorption (sf) Vacancy Rate Asking rent YTD Completions (sf) Under Construction (sf) Class A 4,125,988-12,339 9.4 % $22.47 psf 9,25 192,361 Class B 2,385,88 32,797 1.9 % $17.16 psf Total 6,511,868 2,458 9.9 % $2.52 psf 9,25 192,361 Northeast: The Northeast sub is located along Interstate 69 and includes the rapidly growing suburbs of Fishers and Noblesville. As the population of these communities have exploded over the last fifteen years, developers have aggressively built new office complexes along this corridor. Inventory (sf) YTD Net Absorption (sf) Vacancy Rate Asking rent YTD Completions (sf) Under Construction (sf) Class A 1,556,579-16,285 28.9 % $2.35 psf 155,255 Class B 1,81,78-76,976 25.2 % $17.41 psf Total 3,357,657-183,261 27. % $18.77 psf 155,255 Northwest: The Northwest sub consists of four major office parks INTECH Park, College Park, Woodland Corporate Park and Fortune Park. There is also a significant flex/industrial component in this sub. Indianapolis-based developers Lauth Property Group and Duke Realty developed much of the Class A and B office product in this area. Inventory (sf) YTD Net Absorption (sf) Vacancy Rate Asking rent YTD Completions (sf) Under Construction (sf) Class A 1,55,1 12,354 19.8 % $19.95 psf 115,358 Class B 1,468,533-77,849 27.3 % $16.55 psf Total 3,18,633-65,495 23.5 % $18.28 psf 115,358 Midtown, West/Southwest, East/Southeast, Greenwood: This group of smaller subs includes mostly small, local developers and Class B buildings. Suburban Overview: Inventory (sf) YTD Net Absorption (sf) Vacancy Rate Asking rent YTD Completions (sf) Under Construction (sf) Class A 1,63,462-32,782 15.5 % $21.64 psf 37,68 42,616 Class B 9,168,978-125,22 18.5 % $16.55 psf Total 19,799,44-158,2 16.9 % $19.28 psf 37,68 42,616 CBD: The tenant mix in the CBD appeals to traditional businesses that need access to the state and local governments and court system. The CBD also provides an ample amenity base such as The Conrad, Circle Center Mall, Lucas Oil Stadium, Bankers Life Fieldhouse, and several upscale dining establishments. Parking is limited in most Class A buildings and will add an additional occupancy cost of $3. - $4. PSF. Inventory (sf) YTD Net Absorption (sf) Vacancy Rate Asking rent YTD Completions (sf) Under Construction (sf) Class A 7,11,3 68,344 18.3 % $22.48 psf 25,361 Class B 4,917,847 36,24 11.5 % $17.88 psf Total 12,18,85 14,548 15.5 % $2.6 psf 25,361 Historical Indianapolis Vacancy Rate 22.% 19.% 16.% 13.% Class A Class B Total 28 29 21 211 212 213 214 215 Q4 216 8 6 4 2-2 -4 Historical Indianapolis Absorption 28 29 21 211 212

Office Insight Indianapolis Q4 216 CBD occupancy grows while suburbs see investment More companies relocating from suburbs to downtown This year, nearly 17, square feet was leased by tenants new to the CBD. This total is more than the past two years combined. With more companies looking to relocate from the suburbs to downtown, it is no surprise that the CBD posted the highest level of net absorption in the Indianapolis for the year. It was also one of the only subs to see vacancy decrease since last quarter. This trend will surely continue as almost 15, square feet in active requirements of current suburban tenants are looking to move downtown. Notable new tenants to the CBD Tenant Size (s.f.) New location Previous sub Flaherty & Collins 24,53 Regions Tower Keystone Teradata Corp. 2,454 BMO Plaza North Meridian/Carmel Section 127 11,924 425 W South St East/Southeast Pondurance 1,5 5 North (sublease) Keystone Source: JLL Research CBD, Keystone see greatest occupancy growth Occupancy growth this quarter was limited as a result of a few large tenants vacating their space for owner-occupied locations. Most notably was Roche Diagnostics bringing employees located in 13 Kincaid Drive in the Northeast sub back to its headquarters, creating nearly 2, square feet of newly vacant space. The CBD, Keystone, and North Meridian/Carmel all finished off 216 with positive net absorption, with the CBD showing the greatest amount with over 5, square feet for the quarter and 1, square feet for the year. YTD net absorption by sub (s.f.) CBD Keystone North Meridian/Carmel Northwest -65,495 Northeast -183,261 2,458 71,71 14,548-2, -1, 1, 2, Source: JLL Research Investors focus on northern suburbs Six million square feet of office space traded hands this year, resulting in almost $6 million in sales activity. Three sales closed this quarter, and unlike previously this year, all occurred in the suburbs. In North Meridian/Carmel, Northpoint Center and Pennwood I & II were sold to Tryperion Partners and Kimmel Square, LLC, respectively. Nearby in Keystone, Haverstick I & II were acquired by Priam Capital. In total, 23 sales transactions occurred this year with several more set to close in early 217. Sale volume by sub (s.f.) 9.% 23.5% Source: JLL Research 3.4% 1.7% 5.% 1.2% CBD North Meridian / Carmel 56.3% Northeast Northwest West/Southwest Keystone Midtown 31,818,29 Total inventory (s.f.) 16.4% Total vacancy -332,956 Q4 216 net absorption (s.f.) -53,454 YTD net absorption (s.f.) $19.78 Direct average asking rent 4.7% 12-month rent growth 427,977 Total under construction (s.f.) 56.4% Total preleased

Current conditions Indianapolis Historical leasing activity (s.f.) Landlord leverage Source: JLL Research Non-CBD Indianapolis, CBD Peaking Rising Falling Bottoming Tenant leverage 3,, 2,897,395 2,5, 2,469,14 2,, 1,538,661 1,63,41 1,5, 1,499,52 1,, 5, 212 Source: JLL Research Overview of net absorption Class A finishes year with occupancy growth Despite negative absorption for the quarter, Class A office product still posted occupancy growth in 216. CBD and Keystone Class A product showed the greatest amount of growth, both with over 5, square feet in net absorption. In fact, the CBD s overall net absorption for the quarter was greater than for the past three quarters combined. Additionally, the CBD will receive another boost when Salesforce moves into its new location in Salesforce Tower next year and occupies over 23, square feet. Several northern subs are also poised to have occupancy growth next year when new construction comes online with the majority of space pre-leased. Historical net absorption (s.f.) 5, 4, 3, 2, 1, -1, -2, 212 Source: JLL Research Overview of vacancy North Meridian/Carmel continues to have lowest vacancy in Indy Overall Indianapolis office vacancy ticked up slightly from last quarter as a result of the previously mentioned tenants moving into owneroccupied space. The overall Indianapolis office vacancy rate now sits at 16.4 percent, with Class A at 16.6 percent and Class B at 16.1 percent. North Meridian/Carmel still boasts the lowest overall vacancy rate in the at 9.9 percent. The CBD was the only one of the five major subs to see vacancy drop since last quarter and is now under the average at 15.5 percent. Historical vacancy rates 2.% 19.% 18.% 17.% 16.% 15.% 14.% 212 213 214 215 Q4 216 Source: JLL Research Overview of asking rents Asking rates continue to rise Gross asking rates in metro Indianapolis currently stand at $19.78 per square foot, an increase of over four percent since this same time last year. The combination of strong leasing activity, new construction deliveries earlier this year with more on the way, and investors pumping capital into recently purchased buildings have driven up rental rates. This is especially true for Class A, which has seen rental rates increase by over one dollar since last year. Subs commanding the highest rents continue to be the CBD, Keystone and North Meridian/Carmel. All three of these subs currently have asking rents greater than $2.5 per square foot. Historical asking rents ($ p.s.f.) $24. $22. $2. $18. $16. $14. 212 213 214 215 Q4 216 Source: JLL Research

Office Statistics Indianapolis Q4 216 Class Inventory (s.f.) Total net absorption (s.f.) YTD total net absorption (s.f.) YTD total net absorption (% of stock) Direct vacancy Total vacancy (%) (%) Average direct asking rent ($ p.s.f.) YTD completions (s.f.) Under construction (s.f.) CBD Totals 12,18,85 56,474 14,548.9% 15.3% 15.5% $2.6 25,361 CBD Totals 12,18,85 56,474 14,548.9% 15.3% 15.5% $2.6 25,361 Midtown Totals 874,212-6,371-14,556-1.7% 19.1% 19.1% $14.98 Northeast Totals 3,357,657-342,46-183,261-5.5% 26.9% 27.% $18.77 155,255 Northwest Totals 3,18,633-43,917-65,495-2.2% 19.6% 23.5% $18.28 115,358 East/Southeast Totals 252,32-98 -8,967-3.6% 19.% 19.% $15.44 Keystone Totals 4,52,47 18,474 71,71 1.8% 13.2% 13.9% $21.48 12, 55, North Meridian/Carmel Totals 6,511,868-28,549 2,458.3% 9.8% 9.9% $2.52 9,25 192,361 West/Southwest Totals 1,274,849 744-7,257 -.6% 2.5% 2.5% $14.59 Greenwood Totals 457,719 13,143 29,375 6.4% 11.2% 11.2% $15.74 Suburbs Totals 19,799,44-389,43-158,2 -.8% 16.1% 16.9% $19.28 37,68 42,616 Metro Totals 31,818,29-332,956-53,454 -.2% 15.8% 16.4% $19.78 37,68 427,977 CBD A 7,11,3 75,624 68,344 1.% 18.1% 18.3% $22.48 25,361 CBD A 7,11,3 75,624 68,344 1.% 18.1% 18.3% $22.48 25,361 Midtown A.%.%.% $. Northeast A 1,556,579-243,519-16,285-6.8% 28.9% 28.9% $2.35 155,255 Northwest A 1,55,1-12,55 12,354.8% 12.4% 19.8% $19.95 115,358 East/Southeast A.%.%.% $. Keystone A 3,283,647 11,879 55,26 1.7% 14.5% 15.3% $22.2 12, 55, North Meridian/Carmel A 4,125,988-32,349-12,339 -.3% 9.3% 9.4% $22.47 9,25 192,361 West/Southwest A.%.%.% $. Greenwood A 114,148 18,282 16.% 2.8% 2.8% $15.75 Suburbs A 1,63,462-276,494-32,782 -.3% 14.2% 15.5% $21.64 37,68 42,616 Metro A 17,731,465-2,87 35,562.2% 15.7% 16.6% $21.97 37,68 427,977 CBD B 4,917,847-19,15 36,24.7% 11.3% 11.5% $17.88 CBD B 4,917,847-19,15 36,24.7% 11.3% 11.5% $17.88 Midtown B 874,212-6,371-14,556-1.7% 19.1% 19.1% $14.98 Northeast B 1,81,78-98,527-76,976-4.3% 25.1% 25.2% $17.41 Northwest B 1,468,533-31,412-77,849-5.3% 27.1% 27.3% $16.55 East/Southeast B 252,32-98 -8,967-3.6% 19.% 19.% $15.44 Keystone B 768,823 6,595 16,495 2.1% 7.8% 7.8% $18.41 North Meridian/Carmel B 2,385,88 3,8 32,797 1.4% 1.7% 1.9% $17.16 West/Southwest B 1,274,849 744-7,257 -.6% 2.5% 2.5% $14.59 Greenwood B 343,571 13,143 11,93 3.2% 13.9% 13.9% $15.74 Suburbs B 9,168,978-112,936-125,22-1.4% 18.4% 18.5% $16.55 Metro B 14,86,825-132,86-89,16 -.6% 15.9% 16.1% $17.1

Office Demand in the Indianapolis Q4 216 Requirements by size (by #) Size Requirements 25, + 2 1, - 249,999 6 5, - 99,999 6 25, - 49,999 12 15, - 24,999 6 5, 14,999 54 4,999 34 Requirements by industry (in SF) Industry Requirements Quick stats Active requirements 119 SF of active requirements 2,699,95 SF of average requirement 22,681 Requirements by target sub (in SF) Healthcare 447,743 North Meridian 1,233,45 Aerospace defense transportation 375, Unknown 362, Northeast 1,1,13 Banking finance insurance 341,174 Technology 257,559 Keystone 1,94,322 Law firm 27,5 Government 186,749 Northwest 919,278 Association nonprofit union 114,944 Media and entertainment 17,3 CBD 728,147 Architecture engineering construction design 83,239 Other 34, Real estate 51, Life sciences 35, 2, 4, 6, 8, 1,, 1,2, 1,4, Other professional and business services 34,63 *Several requirements span multiple subs Telecom 3, Accounting consulting research strategy 24, Industry concentrations Manufacturing and distribution 15,684 Marketing advertising communications PR 13,5 CBD Education 6,5 Largest industry demand: Law firm Retail and hospitality 4, Total active industry requirements: 191,5 SF Energy and utilities Northeast Largest industry demand: Healthcare Requirements by broker (by SF) Total active industry requirements: 282, SF Keystone Largest industry demand: Aerospace defense transportation Total active industry requirements: 25, SF Q-to-Q change Resource 4.1% Lee & Associates 4.2% Newmark 8.1% Colliers 8.7% Other 12.5% Avison Young 9.2% CBRE 9.7% JLL 16.9% C + W 26.7% Tenant footprint 42 16 28 Growing Shrinking Stable Industry footprint 4 Industry footprint # of active tenants 3 2 1 Science and technical North Meridian Largest industry demand: Healthcare Total active industry requirements: 285, SF Northwest Largest industry demand: Healthcare Total active industry requirements: 278,743 SF Finance Nonprofit Professional and business services Shrinking Stable Growing Creative Unknown Consumer oriented

Office Leasing Activity Report Completed Transactions Indianapolis Q4 216 This report analyzes all closed office leases > 5, s.f. in Class A and B office buildings At a glance Leasing activity by size Total s.f. leased YTD 2,897,395 1,5, Total leased Number of leases Total transactions YTD 141 Total s.f. leased QTR 582,765 Total transactions QTR 41 Total Class A s.f. leased YTD 2,341,566 Total Class B s.f. leased YTD 555,829 1,, 5, 12 4 2 37 68 4,+ 3,-39,999 2,-29,999 1,-19,999 <9,999 Historical leasing activity 1,5, 1,, 5, Average term (mos) 83. Tenant footprint Leasing activity by industry Leasing activity by sub 76 12 4 Growing Shrinking Stable Leasing activity by transaction type Renewal 1,133,35 Expansion in building 277,269 Relocation within 69,82 Expansion in 515,464 New to 196,193 Tenant movement 4.4%.5% Renewal/Expansion in Building 7.1% Relocation in same 11.5% sub Suburban to Suburban 49.2% New to 27.3% Suburban to CBD CBD to Suburban Top 5 lease transactions during the year 2.9% Q1 215 Q2 215 Q3 215 Q4 215 Q1 216 Q2 216 Q3 216 Q4 216 Scientific and 6.1% 2.5% technical Professional and 7.1% business services 44.5% Finance 18.8% Nonprofit Consumer Oriented Tenant movement by sub (by # tenants) 1.% 8.% 6.% 4.% 2.%.% Tenant Address Sub Size Type Footprint Term (mos) Salesforce.com 111 Monument Circle CBD 227,781 Expansion in Growing 162 Allied Solutions 34 1st Ave Sw North Meridian/Carmel 19,6 Expansion in Growing 156 Stanley Security Solutions 835 Sunlight Dr Northeast 8, Expansion in Growing 132 Sallie Mae 8425 Woodfield Crossing Blvd Keystone 75,558 Relocation within Growing 132 JD Byrider 12722 Hamilton Crossing North Meridian/Carmel 7,32 Renewal Growing 64 Creative 13.% 19.7% 12.4% 1.8% CBD 23.1% 3.1% North Meridian/Carmel Northwest Keystone Northeast 1 1 1 1 3 1 1 Old Sub Midtown 1 4 Northwest 4 4 7 2 2 West/Southwest 1 Northeast 1 2 North Meridian/Carmel 1 2 3 New to 3 3 2 Keystone CBD CBD Keystone North Meridian/Carmel Northeast Northwest New Sub *New deals only; excludes renewals and expansions in building Other

Office Development Report Indianapolis Q4 216 This report analyzes all office developments under construction / renovation > 2, s.f. 37,68 Total delivered YTD (s.f.) Completions in-depth Total available at delivery (%) 29.4% Total leased at delivery (%) 7.6% Average floor plate (s.f.) 33,76 Average number of stories 3 Construction completions 35, 3, 25, 2, 15, 1, 5, 212 Average rental rate $22.33 Historical completions Top 5 projects delivered to date Building Sub Owner/developer RBA (s.f.) Spec or BTS Delivery date Leased at delivery (%) 7676 Interactive Way Northwest Duke Realty Corporation 115,358 BTS Q3 216 1.% River North at Keystone 881 River Crossing Lakeside Green Business Center 645 W Carmel Dr 58 E Carmel Dr #NUM! Keystone PK Partners 12, BTS Q3 216 92.6% North Meridian/Carmel North Meridian/Carmel Atapco Properties 61,5 Speculative Q3 216.% The Garg Group 29,2 BTS Q1 216 25.% Under construction / proposed 772,437 5, 4, RBA SF Amount Preleased Under construction / proposed (s.f.) 3, Under construction/renovation in-depth 2, Total pre-leased (%) 56.4% 1, Total under construction (s.f.) 427,977 Total proposed (s.f.) 344,46 Average floor plate (s.f.) 16,638 Under Construction Proposed Average rental rate $16. Amount preleased by building status (s.f., excludes YTD completions) Top 5 projects currently under construction Building Sub Owner/developer RBA (s.f.) Spec or BTS Delivery date Pre-leased (%) 34 1st Ave SW North Meridian/Carmel Old Town Development 132,361 BTS Q4 217 94.7% 835 Sunlight Dr Northeast Ambrose Property Group 8, BTS Q3 217 1.% 11939 N Meridian St North Meridian/Carmel Citimark 6, BTS Q1 217 61.1% Walker Place at River North -894 River Crossing Blvd Keystone Walker Information / PK Partners 55, BTS Q4 217 78.2% 3 Municipal Dr Northeast Braden Business Systems 45,255 BTS Q3 217 49.2%

Office Sales Activity Report Indianapolis Q4 216 This report analyzes all year-to-date office sales > 2, s.f. At a glance Sales activity by building class Total volume YTD $592,866,531 Number of transactions 23 Average Class A price p.s.f. $81 Average Class A cap rate 7.9% Urban sales volume as % of total 56.3% Suburban sales volume as % of total 43.7% Cap rate range Core Class A CBD 8.5-9.5% $7,, $6,, $5,, $4,, $3,, $2,, $1,, Transactions details $ Number of partial interest transactions $489,866,531 $13,, $592,866,531 A B Grand Total 3 Number of foreign buyers - Foreign capital $ $ Core Class A suburban 8.-9.% Number of domestic buyers 23 Domestic Capital $ $592,866,531 Sales volume $ by sub Top buyers (s.f.) Top sellers (s.f.) CBD $33,67,531 15.6% 5.8% North Meridian / Carmel Northeast $32,1, $187,6, 3.6% 6.7% 38.7% 3.6% 6.7% 38.7% Northwest $2,59, 27.5% 29.9% Keystone West/Southwest Midtown $11,55, $7,3, $3,2, Hertz Investment Group Rubenstein Partners / Strategic Capital Partners The Hearn Company / CrossHarbor Capital Partners Zeller Realty Group Gersham Partners / Citimark Mission Peak Capital Coastal Partners, LLC. Other Equity Commonwealth Duke Realty Corporation True North Management Group Starwood Property Trust, Inc. Christel Dehaan Family Foundation HSBC Bank REI Real Estate Services/Perennial Investments Other Top 1 sales transactions year-to-date Building address Buyer company Seller company Size (s.f.) Sale price ($) $ p.s.f. Sale date Parkwood Crossing Rubenstein Partners / Strategic Capital Partners Duke Realty Corporation 1,22,76 $162,9, $136 Aug-16 111 Monument Cir Hertz Investment Group Equity Commonwealth 1,121,763 $151,438,5 $135 Aug-16 11-115 W Washington St Hertz Investment Group Equity Commonwealth 65,244 $78,29,28 $12 Aug-16 135 N. Pennsylvania St The Hearn Company / CrossHarbor Capital Partners True North Management Group 435, $4,, $92 Apr-16 Castle Creek Zeller Realty Group Starwood Property Trust, Inc. 321,44 $21,5, $67 Sep-16 Lockerbie Marketplace Gersham Partners / Citimark Christel Dehaan Family Foundation 179,87 $16,75, $93 Mar-16 Woodland Corporate Park Coastal Partners, LLC. Duke Realty Corporation 29,56 $14,59, $69 Aug-16 55 Congressional Blvd Tryperion Partners REI Real Estate Services/Perennial Investments 16,433 $11,25, $16 Oct-16 41 E. Washington St Drury Hotels IBJ Media 57,625 $11,, $191 Feb-16 Allison Pointe C-III Asset Management Receivership 216,555 $1,6, $49 Aug-16

Employment Update Metro Indianapolis August 215 Indianapolis January 217 3.6% Indianapolis unemployment 4.2% Indiana unemployment 4.7% U.S. unemployment 2.1% Indianapolis 12-month job growth 1.3% Indiana 12-month job growth 1.5% U.S. 12-month job growth The Indianapolis unemployment rate has remained stable at 3.6 percent, according to the BLS most recent estimates. The state s unemployment rate fell by 2 basis points since last month, and now sits at 4.2 percent. The rate has not been this low since July 21. Financial Activities continues to be the highest growing office sector, and this month it overtook Trade, Transportation & Utilities as the sector with most number of jobs added. It has increased by nearly 5, workers year-over-year with a 7.8 percent growth rate. All but one sector saw annual job growth this month, which has not happened since early 215. This is particularly notable for office sectors, which saw job loss in several sectors over the course of 216. Nationally, unemployment continued to perform well, declining by 3 basis points over the year to 4.7 percent. This came as a result of a steadily increasing workforce, marginally boosting participation, and job growth outperforming the rate of expansion in the workforce. Total jobs vs. Unemployment rate Indianapolis 1,2, Total Employment Unemployment 12.% Peak: 1,24,945 jobs 1,, 1.% 8, 8.% 6, 6.% 4, 4.% 2, 2.% 1.8%.% Office employment trends (12-month change) Indianapolis 2. Financial Activities Professional and Business Services Information Government 15. 1. 5.. -5. -1. -15. 21 211 212 Office real estate implications Office-occupying industry sectors have seen limited job growth this year; however, this should not be the case in the near future. Many companies have announced expansions and hiring efforts should continue through the next few years. With increased employment often comes companies looking to increase their footprint. This can be seen in leasing activity this year. Nearly 6. percent of all deals signed in 216 featured growing tenants. This year, tech companies received a lot of attention for increasing their presence in Indianapolis. While this should not be overlooked, businesses in the financial sector are also increasing their headcount. Financial Activities has recently seen the highest annual growth rate and this month posted the greatest number of jobs added of all industry sectors. This growth is also reflected in leasing activity. The top two industries in terms of amount of square footage leased in 216 were technology and finance, respectively. Job growth/loss by sector (12-month change) Indianapolis Financial Activities Leisure & Hospitality Trade, Transportation & Utilities Educational & Health Services Government Mining and Logging Other Services Professional & Business Services Manufacturing Information 4,9 4,1 4,1 3,1 2,1 1,2 9 9 6-3 Number of jobs -1, 1, 2, 3, 4, 5, 6, Source: Bureau of Labor Statistics, JLL Research

News on the street Indianapolis businesses expanding, contracting, etc. HomeAdvisor Technology: Expanding After opening its first Indianapolis office earlier this year, HomeAdvisor is already expanding into a second office location downtown. This will create up to 17 new jobs by early 217. TriMedx Technology: Expanding The healthcare technology company announced that it is spending $21.5 million to expand its operations and will hire more than 1 workers by 22. Angie s List Technology: Contracting After facing increased competition and the need to be more profitable, Angie s List has begun to layoff an undisclosed number of its 1,8 employee workforce. Cuts being made are part of an effort to save between $15 and $2 million for the company. Realync Corp. Technology: Expanding The Chicago-based real estate technology firm plans to expand into Indianapolis, creating 5 jobs by the end of 22. Covideo Technology: Expanding The video-email technology company will nearly double the size of its Broad Ripple office to make room for 1 new hires planned for 217. Rx Help Centers Healthcare: Expanding The firm specializing in prescription discounts announced it will open an operations center on the northwest side near its current facility in Ten Fortune Park. The expansion will result in 23 jobs by 22. CliqStudios e-commerce: Expanding The online retailer of semi-custom kitchen cabinets is opening a design studio in Indianapolis, the first outside of Minnesota. The company expects to hire 2 employees by 22. Employment statistics Indianapolis Total non-farm employment November 214 November 215 November 216 1,16,8 1.5% 1,34,9 1.4% 1,56,5 2.1% Unemployment rate 5.5% 4.2% 3.6% Indianapolis supersectors November 214 November 215 November 216 Mining, Logging & Construction 45,6-2.4% 47,5 4.2% 48,7 2.5% Manufacturing 89,8 2.5% 89,9.1% 9,5.7% Trade, Transportation, & Utilities 215,.5% 221,4 3.% 225,5 1.9% Information 16,5-1.2% 16, -3.% 15,7-1.9% Financial Activities 61,9 1.8% 62,9 1.6% 67,8 7.8% Professional & Business Services 167,8 5.5% 166,3 -.9% 167,2.5% Educational & Health Services 144,7 -.4% 149,9 3.6% 153, 2.1% Leisure & Hospitality 11,7 2.4% 14,9 3.1% 19, 3.9% Other Services 43,8 1.9% 44,5 1.6% 45,4 2.% Government 13,.2% 131,6 1.2% 133,7 1.6% Industry stratification Indianapolis 4.6% 4.3% 1.5% Trade, transportation and Utilities 21.3% 6.4% 8.6% 1.3% 15.8% 12.7% 14.5% Professional and Business Services Educational and Health Services Government Leisure and Hospitality Manufacturing Financial Activities Mining, Logging and construction Other Services Information

Office Insight CBD Q4 216 Tenant migration keys occupancy growth Quarter in review The CBD closed out a strong year of leasing activity by posting 56, square feet of net absorption in the fourth quarter. This brings the year-end total to 15, square feet, easily the highest in metro Indianapolis. This occupancy growth enabled the vacancy rate to decrease by two full percentage points since the end of 215. Tenants new to downtown was a key driver for this increase in leasing activity. 216 saw 23 deals signed totaling 226, square feet involving tenants either new to the Indianapolis office or moving from the suburbs to the CBD. This is more than the previous two years combined (16 deals totaling 172, square feet). Historical net absorption (s.f.) 4, 2, -2, Historical vacancy rates The decision by Salesforce.com to lease 228, square feet in the since renamed Salesforce Tower had a profound impact leasing activity. The technology sector accounted for 31. percent of this tenant movement. Outlook Downtown Indianapolis is poised for continued growth in 217 with the technology industry continuing to lead the way. In addition to the pending occupancy by Salesforce, a group of investors stand ready to open The Union in January. 3.% 2.% 1.%.% The Union will be housed in the former Brougher Building, past home to Eli Lilly and once a candidate for conversion to multi-family. Instead, the century-old 122,-square-foot-building has been re-purposed to cater to Indianapolis burgeoning tech scene by offering office space with short-term leases. The building will open almost fully occupied with leases already in place with such companies as Springbuk, SmartFile and E-Lilly to name a few. Historical asking rents ($ p.s.f.) $24. $19. With all this growth, it s no surprise that the CBD is currently enjoying 7. percent rent growth year-over-year, highest in metro Indianapolis by a wide margin. Look for rental rates to continue ticking upwards next year as improvements to several buildings that traded hands in 216 begin taking shape. $14. 12,18,85 Total inventory (s.f.) 15.5% Total vacancy 56,474 Q4 216 net absorption (s.f.) 14,548 YTD net absorption (s.f.) $2.6 Direct average asking rent 7.% 12-month rent growth 25,361 Total under construction (s.f.).% Total preleased

Landlord leverage Heat map by building occupancy Recently completed lease transactions Tenant Building address Quarter signed Square footage Type Salesforce.com Salesforce Tower Q2 216 227,781 Expansion in Market Milliman Market Tower Q3 216 42,236 Relocation / Expansion HNTB Salesforce Tower Q2 216 31,686 Renewal Finishmaster PNC Center Q4 216 27,516 Renewal E-Lilly The Union Q4 216 26,517 Relocation / Expansion Property clock Rent condition Leasing activity by industry Peaking Rising Falling Bottoming Tenant leverage 7.4% 16.2% 6.1% 6.1% 46.4% Scientific and technical Nonprofit Professional and business services Finance CBD Sub 17.8% Creative

Office Insight Keystone Q4 216 Keystone sub ends year on a high note Quarter in review Keystone ended 216 on a high note. The sub was second only to the CBD for net absorption in the fourth quarter and for the year. Much of this occupancy growth is due to tenants taking down space in the newly constructed River North at Keystone as well as several expansions and relocations. In fact, seven of the 1 largest deals in Keystone this year were for tenants growing their footprint. With such occupancy growth, it should be no surprise that Keystone boasts one of the lowest vacancy rates in the Indianapolis office. Total vacancy dropped by 5 basis points since last quarter. Class B vacancy has declined even further and now sits at 7.8 percent, the lowest in the by nearly four percentage points (CBD has the second lowest Class B vacancy at 11.5 percent). Historical net absorption (s.f.) 1, 5, -5, Historical vacancy rates Due to continued demand and low vacancy rates, overall asking rates are the highest in Indianapolis. Asking rates in Keystone are nearly one dollar more than the next highest suburban sub ($2.52 in North Meridian/Carmel). Overall asking rates have grown by 3.3 percent year-over-year. Class A asking rates have grown by even more, increasing by 3.9 percent since this time last year and by 6.2 percent since 213. 2.% 15.% 1.% 5.% Outlook Keystone continues to prove to be one of the best subs to locate in Indianapolis for office space. Following the success of River North at Keystone, PK Partners broke ground this quarter on a 55,-square-foot building in which Walker Information will lease over three-quarters of that space. Recently, Keystone Realty Group affiliate Green Indy, LLC announced plans to build a 6,-square-foot commercial building, half of which being speculative office space, named Alexander at the Crossing. With over one million square feet in active tenants looking in Keystone, the sub is poised to have continued occupancy growth in the future..% Historical asking rents ($ p.s.f.) $23. $2. $17. $14. 4,52,47 Total inventory (s.f.) 13.9% Total vacancy 18,474 Q4 216 net absorption (s.f.) 71,71 YTD net absorption (s.f.) $21.48 Direct average asking rent 3.3% 12-month rent growth 55, Total under construction (s.f.) 78.2% Total preleased

Landlord leverage Heat map by building occupancy Recently completed lease transactions Tenant Building address Quarter signed Square footage Type Sallie Mae Three Woodfield Q1 216 75,558 Relocation / Expansion Walker Information 894 River Crossing Q3 216 42,5 Relocation Paychex 8335 Keystone Crossing Q3 216 41,182 Renewal / Expansion Blackboard One River Crossing Q3 216 28,674 Relocation Oak Street Funding 8888 Keystone Crossing Q2 216 23,891 Sublease Property clock Rent condition Leasing activity by industry Keystone Sub Peaking Rising Falling Bottoming Tenant leverage 16.9% 3.7% 2.6% Finance 46.5% Professional and business services Scientific and technical Consumer Oriented 3.4% Nonprofit

Office Insight North Meridian/Carmel Q4 216 More options coming soon to constricted Quarter in review North Meridian/Carmel finished off the year with one of the lowest vacancy rates and highest asking rates in the Indianapolis office. Overall vacancy sits at 9.9 percent, the only sub to have this rate in the single digits. The Class A rate is even lower at 9.4 percent. This is an increase from last quarter, but is mainly due to a few tenants vacating large spaces. Occupancy growth was also limited during the fourth quarter because of this; however, net absorption was still positive for the year. Due to consistently low vacancy rates and high asking rates, it is unsurprising that numerous construction projects began or were announced in 216. In addition to the four projects that either completed or started construction this year, three more buildings have been announced. Carmel Pointe (117,5 square feet), Midtown West (8, square feet), and Merchants Bank Building (8, square feet) are all slated to break ground in the first half of 217 and be completed in 218. When completed, over 55, square feet of office product would be added to the sub over the next two years. Investment activity continued this quarter with two additional sales. Northpoint Center (55 Congressional Blvd.) and Pennwood I & II (1145-11495 N Pennsylvania St.) were purchased by Tryperion Partners and Kimmel Square, LLC, respectively. With four sales totaling nearly $188 million, North Meridian/Carmel had the most investment activity of the suburban subs. Outlook Expect to see vacancy rates increase in 217 as several large tenants are downsizing or exiting the. Firestone will be vacating its space in Parkwood West following the opening of parent company Bridgestone Americas, Inc. s new headquarters in Nashville, Tennessee. Additionally, Technicolor will downsize from its current space at 11 W. 13 rd Street, with 1, square feet already available for sublease. However, North Meridian/Carmel is poised to remain popular to tenants and investors alike. The sub remains a favorite among active tenants and additional investment activity is expected in early 217. Historical net absorption (s.f.) 3, 2, 1, -1, Historical vacancy rates 15.% 1.% 5.%.% Historical asking rents ($ p.s.f.) $23. $2. $17. $14. 6,511,868 Total inventory (s.f.) 9.9% Total vacancy -28,549 Q4 216 net absorption (s.f.) 2,458 YTD net absorption (s.f.) $2.52 Direct average asking rent 3.% 12-month rent growth 192,361 Total under construction (s.f.) 84.2% Total preleased

Landlord leverage North Meridian Heat map by building occupancy 116 th Street Recently completed lease transactions Tenant Building address Quarter signed Square footage Type Allied Solutions Midtown Carmel Building 1 Q1 216 19,6 Expansion in Market JD Byrider Hamilton Crossing I Q3 216 7,32 Renewal / Expansion NextGear Capital, Inc. 132 City Center Dr Q1 216 44,479 Expansion in Building Morgan Stanley Eight Parkwood Q3 216 3,571 Renewal Blue & Co., LLC. Hamilton Crossing III Q1 216 29,671 Expansion in Building Property clock Rent condition North Meridian/Carmel Sub Peaking Rising Falling Bottoming Tenant leverage Leasing activity by industry 2.% 3.%.9%.8% Finance 39.2% Scientific and technical Professional and business services Consumer Oriented Creative 36.1% Nonprofit

Office Insight Northeast Q4 216 Corporate consolidations impact Northeast Quarter in review The Northeast sub felt the impact of corporate consolidation this quarter as Roche Diagnostics vacated nearly 2, square feet of tracked office space in favor of having everyone under one roof in newly constructed space on its corporate campus. This is just one example of several companies downsizing in the sub (Comcast, Marsh and Schwab are others) that led to over 3, square feet of negative net absorption in the fourth quarter and -18, square feet for the year. This corporate downsizing led overall vacancy to increase by nearly 1 percentage points since last quarter. However, the sub stands ready to bounce back quickly in 217. Construction will wrap up on build-to-suit projects for Blue Sky Technology Partners, Braden Business Systems and Stanley Security next year. This space is already nearly 8. percent preleased. Further, RQAW Corporation should break ground on its new headquarters in downtown Fishers as well. Meanwhile the purchases of Castle Creek III-VI by Zeller Realty Group and Woodland Center I & II and Lake Pointe Center II by C-III Asset Management out of receivership will help to reposition the assets that have been neglected for some time. Outlook The Northeast continues to offer one of the lowest asking rates among the five major Indianapolis office subs. With several large tracts now available for lease, investment capital being pumped into the sub and new amenities on the way (Ikea, TopGolf, The Yard), the Northeast should continue to see high levels of tenant activity next year. Currently, there remains 1.2 million square feet of active tenants considering space in the Northeast, second only to North Meridian/Carmel. Historical net absorption (s.f.) 1, -1, -2, Historical vacancy rates 4.% 3.% 2.% 1.%.% Historical asking rents ($ p.s.f.) $22. $2. $18. $16. $14. 3,357,657 Total inventory (s.f.) -342,46 Q4 216 net absorption (s.f.) $18.77 Direct average asking rent 155,255 Total under construction (s.f.) 27.% Total vacancy -183,261 YTD net absorption (s.f.) 5.2% 12-month rent growth 78.8% Total preleased

Heat map by building occupancy Recently completed lease transactions Tenant Building address Quarter signed Square footage Type Stanley Security Solutions Fishers Gateway Q1 216 8, Expansion in Market Republic Services Two Concourse Q1 216 68, New to Market Ardagh Group Two Concourse Q2 216 43,369 New to Market 1 st Signature Lending 98 Crosspoint Blvd Q3 216 21,513 Sublease E-gineering Lake Pointe Center V Q2 216 19,57 Renewal / Expansion Property clock Rent condition Leasing activity by industry Northeast Sub Landlord leverage Peaking Rising Falling Bottoming Tenant leverage 13.7% 1.8% 2.9% 1.4% 4.3% Professional and business services Scientific and technical Consumer Oriented Finance 3.9% Nonprofit

Office Insight Northwest Q4 216 Northwest ends year with rise in leasing velocity Quarter in review The Northwest sub closed out 216 with -44, square feet of net absorption during the fourth quarter. This brings the year-end absorption total to -65, square feet. As a result of this occupancy loss, total vacancy in the sub increased by more than five percentage points and currently sits at 23.5 percent. Only the Northeast has a higher vacancy rate at 27. percent. However, leasing activity began to pick up towards the end of the year. In fact, 36. percent of all leasing activity that took place in the Northwest sub this year occurred during the fourth quarter, including four of the top 1. Further, the Northwest saw three transactions close in 216 involving tenants new to the Indianapolis office (leasing data accounts for all leases signed in excess of 5, square feet). The CBD was the only one of the five major subs with more. Additionally, nearly 65. percent of Northwest leases signed this year were new deals or expansions compared to only 4. percent in 215. The top of the, namely Class A, also performed well in 216 with 12, square feet of absorption. This ranks ahead of both the Northeast and North Meridian/Carmel subs this year. Outlook The Northwest sub continues to boast the lowest asking rates among the five major office subs in metro Indianapolis and is currently seeing just under 1 million square feet of active tenant requirements. The sub could be poised for continued leasing velocity due to its affordability and amount of available space. The recently constructed Woodland Corporate Park VII, for example, is available for sublease following the acquisition of Interactive Intelligence by California-based Genesys, offering in excess of 1, square feet of Class A space. Historical net absorption (s.f.) 3, 2, 1, -1, Historical vacancy rates 3.% 2.% 1.%.% Historical asking rents ($ p.s.f.) $22. $2. $18. $16. $14. 3,18,633 Total inventory (s.f.) 23.5% Total vacancy -43,917 Q4 216 net absorption (s.f.) -65,495 YTD net absorption (s.f.) $18.28 Direct average asking rent 1.7% 12-month rent growth Total under construction (s.f.).% Total preleased

Landlord leverage Heat map by building occupancy Michigan Road Recently completed lease transactions Tenant Building address Quarter signed Square footage Type Heritage Environmental Services INTECH Three Q3 216 36,225 Relocation TriMedEx Woodland Corporate Park II Q4 216 33,973 Sublease Total Quality Logistics Lakeside at College Park Q2 216 23,521 Renewal / Expansion Sedgwick Claims Management Service College Park Plaza Q4 216 13, New to Adesa/KAR Woodland Corporate Park III Q1 216 12,456 Expansion in Property clock Rent condition Leasing activity by industry Northwest Sub Peaking Rising Falling Bottoming Tenant leverage 12.8% 1.5% 1.% 5.1% 79.6% Scientific and technical Professional and business services Consumer Oriented Creative Finance

For more information, please contact: Mike Cagna Senior Research Analyst +1 317 81 7358 mike.cagna@am.jll.com Brianna Marshall Research Analyst + 1 317 81 736 brianna.marshall@am.jll.com About JLL JLL (NYSE: JLL) is a professional services and investment management firm offering specialized real estate services to clients seeking increased value by owning, occupying and investing in real estate. A Fortune 5 company with annual fee revenue of $5.2 billion and gross revenue of $6. billion, JLL has more than 28 corporate offices, operates in more than 8 countries and has a global workforce of more than 6,. On behalf of its clients, the firm provides management and real estate outsourcing services for a property portfolio of 4. billion square feet, or 372 million square meters, and completed $138 billion in sales, acquisitions and finance transactions in 215. Its investment management business, LaSalle Investment Management, has $58.3 billion of real estate assets under management. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit www.jll.com. About JLL Research JLL s research team delivers intelligence, analysis and insight through -leading reports and services that illuminate today s commercial real estate dynamics and identify tomorrow s challenges and opportunities. Our more than 4 global research professionals track and analyze economic and property trends and forecast future conditions in over 6 countries, producing unrivalled local and global perspectives. Our research and expertise, fueled by real-time information and innovative thinking around the world, creates a competitive advantage for our clients and drives successful strategies and optimal real estate decisions. This publication is the sole property of Jones Lang LaSalle IP, Inc. and must not be copied, reproduced or transmitted in any form or by any means, either in whole or in part, without prior written consent of Jones Lang LaSalle IP, Inc. COPYRIGHT JONES LANG LASALLE IP, INC. 217