Market Report. Northern Virginia 2nd Quarter cushmanwakefield.com

Market Report Northern Virginia 2nd Quarter 2017 cushmanwakefield.com

Contents DC Metropolitan Area Overview...3 Northern Virginia & Map...4-6 Alexandria...7 RB Corridor...8 Crystal City/Pentagon City...9 Tysons Corner......10 Reston/Herndon...11 50-66...12 Route 28 South/Chantilly...13 Loudoun County...14 Appendix...15 Tables...15-24 Methodology & Definitions...25 About Cushman & Wakefield...26 Cushman & Wakefield 2

Washington, DC Metropolitan Area Continued Musical Chairs Following a record start in the first quarter of the year, the Washington, DC politan region s (DC Metro) economy continued to grow in the second quarter of 2017. The Bureau of Labor Statistics (BLS) reported nearly 20,000 net new jobs from January through June 2017, and will easily surpass the Washington region s historical average of 36,000 annual net new jobs. Cushman & Wakefield forecasts an annualized 52,000 net new nonfarm jobs by year-end 2017. Suburban Maryland led the region with 10.100 net new jobs since January, 1,480 of which were in the office-using sectors, followed by Northern Virginia, which recorded 6,100 net new jobs (2,000 in office -using sectors) and Washington, DC with 3,400 net new jobs (with officeusing employment contracting by 500 jobs.). Overall, education and healthcare, retail, construction, and professional and business services lead job growth with 12,580, 5,315, 2,870, and 2,610 jobs, respectively. Across the region, the headline-making story has been the development pipeline. With a wave of construction expected to kick-off in downtown Bethesda, and new and renovated development already well-underway in the District of Columbia and Northern Virginia, the development pipeline is expected to bring a total of 15.0 million square feet (msf) of Class A product to the DC Metro by 2021. At the close of the second quarter, 44.4% of the pipeline was preleased, leaving a number of large blocks available for tenants. The overall vacancy rate for existing product in the DC Metro area closed the second quarter of 2017 at 18.1%, which is expected to continue to climb as new product is delivered to the market. While the bulk of new leasing activity was comprised of existing tenants shifting within the market, the DC Metro did have a number of green shoots during the first half of 2017, particularly from nontraditional office users. Marriott officially executed its lease to relocate the hotelier s headquarters to 7750 Wisconsin Avenue in downtown Bethesda. Nestle s announced plans to relocate its headquarters from California to Northern Virginia and its subsequent expansion, has helped to chip away at vacancy in Rosslyn. In the District of Columbia, a confidential technology firm committed to nearly 74,000 square feet (sf) at Terrell Square (575 7th Street, NW), expanding the company s existing footprint in DC by nearly 20,000 square feet (sf). Overall, new leasing activity for the DC Metro closed the quarter at 6.4 msf of yearto-date leasing, the bulk of which occurred in the District of Columbia (3.0 msf), followed by Northern Virginia (2.4 msf), and then Suburban Maryland (1.0 msf). For the region, year-to-date net absorption remained positive for the DC Metro region, though down from the second quarter of 2016. Overall net absorption for the first half of 2017 closed the second quarter of 2017 at 600,401 sf, a 26.9% decline since the same period last year as tenants continue to seek out efficiencies on their relocations. Though year-over-year absorption slipped and long-term vacancy rates are expected to rise, asking rents continued to hold across the region and were bolstered as landlords continued to offer peak concession rates in a bid to incentivize tenant relocations in lieu of dropping rates. On average, tenants can expect to receive an average of 1 month abatement per year of term, and generous tenant improvement allowances across the DC Metro. With the wave of deliveries expected to hit the market, landlords are expected to continue to face stiff competition as tenants continue their flight to quality and efficiency in a round of musical chairs. WASHINGTON, DC METRO Economic Indicators Q2 16 Q2 17 DC Metro Employment 3.23M 3.28M DC Metro Unemployment 3.8% 3.6% U.S. Unemployment 4.9% 4.4% Market Indicators Q2 16 Q2 17 Overall 17.9% 17.5% Net Absorption 830K 600K Under Construction 6.76M 9.79M Deliveries 2.19M 432K Average (FS) $36.19 $39.63 Net Absorption/ 4Q TRAILING AVERAGE 1,400 1,200 1,000 Washington, DC Metropolitan Area NET ABSORPTION - DELIVERIES - VACANCY MSF 800 600 400 200 0-200 -400-600 -800 10 8 6 4 2 0-2 -4-6 05 06 07 08 09 10 11 12 13 14 15 16 17 Net Absorption Deliveries Rate 12-Month Forecast 12-Month Forecast -1,000 2011 2012 2013 2014 2015 2016 2017 Net Absorption, SF (thousands), $ PSF 20% 16% 12% 8% 4% 0% $39 $39 $38 $38 $37 $37 $36 Rate cushmanwakefield.com 3

Northern Virginia Economy The Washington, DC politan region continues to experience strong job growth, adding a total of 50,100 net new nonfarm payroll jobs between May 2016 and May 2017. Northern Virginia (NoVA) accounted for 20,400 of those new jobs 41% of the total. In addition, 69% of the office-using employment growth in the region 11,840 of 17,190 total jobs took place in Northern Virginia. Market Overview Thanks to 650,000 SF of absorption in Q2 2017 NoVA s largest quarterly figure in over five years the market s vacancy rate dipped to 20.8%. That is the lowest vacancy rate since the third quarter of 2014. Its impact has been felt across the office spectrum as all three building classes saw vacancies decrease over the past few years. Class A product alone experienced 425,472 SF of absorption in the second quarter, and currently maintains a 19.0% vacancy rate. Positive absorption for the quarter can be attributed to a number of large move-ins: Ellucian, CDW, and Volkswagen occupied a combined 160,000 SF at 2003 Edmund Halley Drive; Applied Predictive moved into 98,000 SF at 4250 North Fairfax Drive; and WeWork took 92,000 SF at 1775 Tysons Boulevard. Rental rates for all classes have remained relatively unchanged over the past few years, as the decrease in rates due to lease-up of expensive Class A and new construction product counteracts rent increases in Silver Line hot spots and in certain Rosslyn-Ballston Corridor buildings. Nestle s market-moving 206,000-SF first-quarter 2017 lease was bested in the second quarter by Amazon Web Services (AWS)* 400,000-SF blockbuster deal at 13200 Woodland Park in Herndon space formerly occupied by Booz Allen Hamilton. This deal represents significant net new growth in the Toll Road market, as AWS augments its current 230,000-SF footprint at 12900 Worldgate Drive. AWS and its Fortune 12 tech-company parent have been active in the data center space in Loudoun County, but the new deal signals a desire to bolster AWS s digital presence with a physical one. Renewals again figured prominently in the second quarter of 2017, accounting for 12 of the top 15 leases of the quarter, with contractors and GSA users accounting for the top ten renewals. No new buildings broke ground or were completed in the second quarter, as delivery of Marymount s project at 1000 North Glebe Road was pushed back to the third quarter of this year. With the number of large blocks decreasing in Silver Line-walkable buildings, the build-versus-hold debate may be hitting a tipping point. Outlook AWS s 400,000-SF lease in Herndon represents the largest private-sector deal in a non-owner-occupied building since CEB Inc. signed for 625,000 SF in Rosslyn s Waterview building in 2004. A recent expansion by another West Coast tech behemoth in downtown Washington, DC represents an increase in the industry s ties to government and growing lobbying activities, and a handful of additional well-known technology firms are in the market for the first time. Northern Virginia s formula of highly educated workers, pro-business policies, and affordable real estate compared to tech hubs San Francisco, Boston, and New York, may further accelerate this tech industry growth, bolstered by potential contract dollars related to the upgrade of legacy federal computer systems. *According to public media reports Market Indicators Net Absorption/ 4Q TRAILING AVERAGE 400 200 0-200 -400-600 -800 2011 2012 2013 2014 2015 2016 2017 Net Absorption, SF (thousands), $ PSF Overall Q2 16 Q2 17 Overall 21.60% 20.80% Net Absorption 371k 650k Under Construction 3.1M 4.7M Deliveries 160K 0K Average $32.70 $32.16 24% 22% 20% 18% 16% 14% 12% Large Blocks of Contiguous Space 12-Month Forecast 10% 2011 2012 2013 2014 2015 2016 2017 Loudoun County Route 28 South Springfield/Newington 50/66 Reston/Herndon Tysons Corner Arlington Alexandria 0 20 40 60 80 # of Blocks 25-50k SF 50-100k SF 100-150k SF 150-200k SF 200k+ SF $34 $33 $32 $31 $30 $29 $28 Cushman & Wakefield 4

Northern Virginia Office Submarkets Northern Virginia Office Submarkets LOUDOUN LOUDOUN PHASE II 2016 267 MARYLAND ROUTE 772 ROUTE 606 RESTON RESTON 267 INNOVATION CENTER WASHINGTON DULLES INTERNATIONAL AIRPORT PHASE I 7 HERNDON RESTON TOWN CENTER 267 WIEHLE - RESTON EAST TY UN TY CO UN N CO X SPRING HILL FA OU WASHINGTON, DC IR UD 123 28 Y NT TY OU UN X C CO FA N IR TO FA ING L R A FA LO DI ST DULLES AIRPORT D AN YL IA AR IN M IRG V RI MA RY CT OF LA N D CO LU M BI A HERNDON HERNDON LOUDOUN COUNTY 50 FAIRFAX COUNTY GREENSBORO MCLEAN TYSONS CORNER 286 ARLINGTON COUNTY TYSONS 495 WEST FALLS CHURCH EAST FALLS CHURCH VIR 29 66 66 BALLSTON ALGONKIAN P 50 FAIRFAX CENTER IA CLARENDON VIRGINIA SQUARE - GMU R-B CORRIDOR 495 VIENNA 66 AR 28 29 GIN ROSSLYN COURT HOUSE DUNN LORING/ MERRIFIELD 123 ROUTE 28 SOUTH 50 50 PENTAGON CRYSTAL CITY MERRIFIELD AY KW 29 395 RONALD REAGAN WASHINGTON NATIONAL NATIONAL AIRPORT AIRPORT 236 I-395 CORRIDOR 286 7 FAIR FAX COUN TY PRINCE WILLIAM C O POTOMAC RIVER VAN DORN STREET UNT Y EISENHOWER AVENUE KING STREET 1 OLD TOWN ALEXANDRIA EISENHOWER AVENUE PRINCE WILLIAM COUNTY 95 FRANCONIA/ SPRINGFIELD SPRINGFIELD/ NEWINGTON cushmanwakefield.com 5

Top Transactions Key Lease Transactions Q2 2017 PROPERTY SF TENANT TRANSACTION TYPE SUBMARKET 13200 Woodland Park Drive 400,000 Amazon Web Services* New Lease Reston/Herndon 1320 Braddock Place 131,000 GSA - USDA New Lease Old Town 4050 Legato Road 92,000 Accenture/ASM Research Renewal Fairfax/Oakton/Vienna Key Sales Transactions Q2 2017 PROPERTY SF SELLER / BUYER PRICE / $PSF SUBMARKET 1919 North Lynn Street - Waterview Tower 634,000 Paramount Group / Morgan Stanley $459,250,000 / $724 Rosslyn 1801 North Lynn Street 350,000 Morgan Stanley / GSA $240,000,000 / $686 Rosslyn 7901 Jones Branch Drive - Shenandoah Building 197,000 TIAA-CREF / Rockpoint Group $55,250,000 / $281 Tysons Northern Virginia Office Market Net Absorption - Deliveries -, Second Quarter 2017 Northern Virginia Office Market Inventory and by Submarket, Second Quarter 2017 Square Feet, 000 s 5,000 4,000 3,000 2,000 1,000 0-1,000-2,000-3,000 07 08 09 10 11 12 13 14 15 16 17 25% 20% 15% 10% 5% 0% Rate MSF 30 25 20 15 10 5 0 Alexandria RB Corridor Crystal City Tysons Reston/Herndon 50/66 Rte. 28 South Loudoun 30% 25% 20% 15% 10% 5% 0% Rate Net Absorption Deliveries Rate Leased Vacant Rate Cushman & Wakefield 6

Alexandria Market Indicators *Arrows = Current Qtr Trend 23.9% Net Absorption 10,865 SF Under Construction 720,000 SF Deliveries 0 SF $31.22 FS in Old Town is 9.2%, and for Greater Alexandria (Old Town, Eisenhower and I-395 submarkets) 23.9% both rates unchanged from one year ago. Old Town boasts the lowest vacancy rate of any Northern Virginia submarket, with Clarendon the second tightest at 15.7%. Class A vacancy in Old Town stands at a very healthy 7.2%, a rate also unchanged from one year ago. There were no leases recorded in the Eisenhower submarket and only 8,357 square feet (sf) of leasing activity in the I-395 Corridor. However, Old Town captured Northern Virginia s second-largest lease of the quarter (behind Amazon s 400,000-sf lease in Herndon) as the GSA/U.S. Department of Agriculture (USDA) signed for 131,000 sf at Braddock Metro Center 2. Two other notable leases were Wyndham Resort s renewal of 14,140 sf at 1737 King Street and National Association of Drug Court Professionals (NADCP) new lease for 10,442 sf at 625 N Washington Street. Move-in and move-out activity among tenants occupying greater than 15,000 sf was light in the second quarter of 2017. Alexandria s asking rents have remained steady in the $31-$33 per square foot (psf) range on a full-service basis over the past five years. Class A asking rents in Old Town declined 4.2% from the first quarter of the year, mainly due to a price reduction at 1900 Duke Street. Alexandria experienced a flurry of sales activity in the second quarter, as Monday Properties purchased a five-property, 290,000-sf portfolio from Duke Realty for $25.9 million ($89/sf). Buildings in the sale included 1500, 1600, 1800, 1900 and 2000 North Beauregard Street. Monday Properties has stated it intends to complete extensive enhancements to amenities, common areas and landscaping of those buildings originally built in the 1970s. There were two other second-quarter sales: Kassabian Realty purchased the National School Boards Association Building (1980 Duke Street) from Normandy Real Estate Partners for $19.0 million ($404/sf), and JER Partners sold 1701 North Beauregard Street to Alexandria City Public Schools for $15.0 million ($126/sf) which desires to convert this office building and adjacent parking garage into a school and playground. Outlook As construction on the fully leased 3000 Potomac Avenue office building adjacent to the future Potomac Yard Metro station continues, and with the National Science Foundation set to move into its 700,000-sf headquarters building in the Eisenhower submarket by the end of this year, these periphery sections of Alexandria will bring an influx of office workers and daytime spenders to the market. Square Feet, 000 s Net Absorption Deliveries 800 30% 600 25% 400 20% 200 15% 0-200 10% -400 5% -600 0% 07 08 09 10 11 12 13 14 15 16 17 Net Absorption Deliveries Rate Old Town Rate New Leasing Activity 1.20 1.00 0.80 MSF 0.60 0.40 0.20 0.00 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Q1 Q2 Q3 Q4 $39 $37 Full Service PSF $35 $33 $31 $29 $27 $25 2012 2013 2014 2015 2016 2017 Class A Class B Rate cushmanwakefield.com 7

RB Corridor Market Indicators *Arrows = Current Qtr Trend 21.0% Net Absorption 262,093 SF Under Construction 862,729 SF Deliveries 0 SF $42.40 FS The Rosslyn-Ballston (RB) Corridor began 2017 with a strong 80,372 square feet (sf) of positive absorption in the first quarter followed by an even stronger 262,063 sf in the second. Ballston accounted for 147,000 sf of that absorption, with Applied Predictive occupying 98,000 sf at 4250 North Fairfax Drive, DRT Strategies taking 14,000 sf at 4401 North Fairfax Drive, and Systems & Technology Research moving into 10,000 sf at 901 North Stuart Street. After hitting a 10-year high of 21.7% in the second quarter of 2016, Ballston s vacancy continues to decrease, declining to 17.2% at the end of Q2 2017. The largest physical occupancy was that of Regus Spaces, which took 44,000 sf at 1101 Wilson Boulevard in Rosslyn. Leasing activity in the RB Corridor was a lower-than-average 76,154 sf during the second quarter, as the top three deals were all renewals: GSA/U.S. Department of Homeland Security renewed for 77,000 sf at 4601 North Fairfax Drive, Raytheon/ BBN Technologies re-committed to 43,277 sf at 1300 North 17th Street and Language Associates extended its 41,364-sf lease at 1901 North Fort Myer Drive. The largest new deal of the quarter was that of Insight Global which signed for 24,346 sf at 1001 North 19th Street in Rosslyn. From 2015 to 2016, direct rental rates in the RB Corridor declined 7.0%, as the corridor had to contend with an extended period of high vacancy. However, rental rates rose 4.1% in the first two quarters of 2017, to $42.53 per square foot (psf) on a full-service basis a healthy bucking of the previous trend. Concessions in the RB Corridor have increased steadily over the past five years and are currently at all-time highs, but declining vacancy may halt this trend over the next six to twelve months. The most significant sales transaction of the quarter was Morgan Stanley s purchase of Waterview Office Tower (1919 North Lynn Street) from Paramount Group REIT for $459.3 million ($724/ sf). About half of the 647,000-sf building is due to be vacated in January 2018 as Gartner (formerly CEB) moves into its under-construction future headquarters building at 1201 Wilson Boulevard. Rosslyn captured the other major office sale of the quarter, as the GSA purchased 1801 North Lynn Street from Morgan Stanley and JBG for $240 million ($686/sf). The Bureau of Diplomatic Security currently occupies the entire building. Outlook One of Northern Virginia s most significant leases of the past several years transpired in the first quarter of 2017: Nestlé USA announced plans to relocate its headquarters from Los Angeles to Rosslyn, and will move into 206,000 sf at 1812 North Moore Street. This development spurred interest from some larger regional tenants in the market, many of which are taking a closer look at the submarket as Nestlé diversifies the primary tenant base away from consultancies, and as Central Place Plaza and its retail delivers. Net Absorption Deliveries Square Feet, 000 s MSF 1,000 800 600 400 200 0-200 -400-600 -800 25% 20% 15% 10% 5% 0% 07 08 09 10 11 12 13 14 15 16 17 Net Absorption Deliveries Rate New Leasing Activity 1.60 1.40 1.20 1.00 0.80 0.60 0.40 0.20 0.00 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Q1 Q2 Q3 Q4 $50 $48 Full Service PSF $46 $44 $42 $40 $38 $36 $34 $32 2012 2013 2014 2015 2016 2017 Class A Class B Rate Cushman & Wakefield 8

Crystal City/Pentagon City Market Indicators *Arrows = Current Qtr Trend 22.0% Net Absorption (25,534 SF) Under Construction 100,000 SF Deliveries 0 SF $36.71 FS Over the past five years, Class A product has registered 819,000 square feet (sf) of positive absorption. Class B product registered 607,000 sf of negative absorption during the same time period, as tenants have expressed a preference for new and renovated buildings. The overall vacancy rate currently stands at 22.0%, equal to the five-year running average. However, Class A vacancy is a healthier 17.2%, much lower than its five-year running average of 22.7%. The most significant deal of the quarter was Raytheon s 70,000- sf renewal and 16,000-sf expansion at 2450 Crystal Drive. There were a handful of smaller leases: the Cobalt Company and Mission1st Group signed new leases of 9,600 sf and 5,000 sf, respectively, at 2511 Jefferson Davis Highway, and Trident Maritime Systems signed a 5,500-sf new lease at 2001 Jefferson Davis Highway. There were no notable physical moves or significant office sales transactions in the second quarter of 2017, and rental rates for all classes remained virtually unchanged from Q1 2017. Square Feet, 000 s Net Absorption Deliveries 1,000 500 0-500 -1,000-1,500-2,000 07 08 09 10 11 12 13 14 15 16 17 Net Absorption Deliveries Rate New Leasing Activity 1.00 0.90 0.80 0.70 0.60 30% 25% 20% 15% 10% 5% 0% Rate MSF 0.50 0.40 0.30 0.20 0.10 0.00 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Q1 Q2 Q3 Q4 $44 $42 Outlook The completed merger of Vornado Realty Trust and JBG into JBG Smith is bringing a new set of development professionals to the Crystal City submarket. JBG Smith executives have labeled the submarket a top priority as they plan to be proactive with a new set of demolition and redevelopment. Full Service PSF $40 $38 $36 $34 $32 2012 2013 2014 2015 2016 2017 Class A Class B cushmanwakefield.com 9

Tysons Corner Market Indicators *Arrows = Current Qtr Trend 21.6% Net Absorption (31,055 SF) Under Construction 1,555,419 SF Deliveries 0 SF $31.94 FS Tysons vacancy rate ticked up to 21.6% in Q2 2017, up from 21.5% in the first quarter. The high velocity of move-ins and move-outs in the second quarter were nearly evenly matched, resulting in a negative 31,000 square feet (sf) of absorption. Mitre vacated the entire 152,000 sf at 1550 Westbranch Drive, and is now in the market for swing space as its existing four-building campus is at capacity. Grant Thornton vacated 28,000 sf at 2010 Corporate Drive in a move to Rosslyn s Twin Towers. Ernst & Young relocated from 110,000 sf at 8484 Westpark Drive to 124,000 sf at Tysons newest office building 1775 Tysons Boulevard while WeWork moved into its 92,000-sf space in that same building. Year-to-date leasing activity in Tysons stands at 375,000 sf, slightly below the five-year running average. The largest leasing transactions of the second quarter of 2017 included: BAE, which renewed for 30,000 sf at 8201 Greensboro Drive; The Media Trust, which signed a 26,000-sf sublease at 1660 International Drive; DMI, which leased 23,000 sf at 1600 International Drive; and Executive Office Suites, which took over 19,000 sf of Carr Workplaces former space at 8200 Greensboro Drive. Asking rental rates for all classes have remained relatively unchanged over the past few years, as the decrease in rates due to lease-up of expensive Class A and new construction product has offset rent increases in the Hill/Greensboro Drive minimarket. The submarket was home to several significant sales transactions in the second quarter. Rockpoint Group continued to add to its Tysons portfolio, purchasing the three-building Tysons Dulles Plaza complex for $130.3 million ($270/sf) from KBS REIT, as well as the Shenandoah Building (7901 Jones Branch Drive) for $55.3 million ($281/sf) from TIAA-CREF. Westport Capital purchased the virtually empty 2000 Corporate Ridge for $24.5 million ($96/ sf) from LNR Partners, and plans for an extensive renovation. Square Feet, 000 s MSF Net Absorption Deliveries 1,000 800 600 400 200 0-200 -400-600 -800 07 08 09 10 11 12 13 14 15 16 17 Net Absorption Deliveries Rate New Leasing Activity 1.60 1.40 1.20 1.00 0.80 0.60 0.40 0.20 25% 20% 15% 10% 5% 0% Rate 0.00 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Q1 Q2 Q3 Q4 $50 Outlook With Rockpoint Group purchasing four more Tysons office buildings in the second quarter, this Boston-based real estate private equity firm now owns nine office buildings in Tysons. PS Business Parks also owns nine office buildings, followed by Meridian Group with seven, and Lerner with six. This attraction of laser-focused private equity money could be a good bellwether for the attractiveness of this evolving submarket. Full Service PSF $45 $40 $35 $30 $25 2012 2013 2014 2015 2016 2017 Class A Class B Cushman & Wakefield 10

Reston/Herndon Market Indicators *Arrows = Current Qtr Trend 16.6% Net Absorption 65,067 SF Under Construction 354,913 SF Deliveries 0 SF $27.99 FS in the Reston/Herndon submarket is 16.6%, unchanged from one year ago, although the rate is slightly below the fiveyear average of 17.0%. The submarket s sublet vacancy rate at 2.1% is the second-highest in Northern Virginia (after that of the Route 28 South submarket), a factor which provides opportunity for value-conscious tenants and also competition for landlords with direct space on the market. Amazon Web Services (AWS) signed a 400,000-square-foot (sf) blockbuster, widely reported lease at 13200 Woodland Park in Herndon space formerly occupied by Booz Allen Hamilton. This represents the largest private-sector lease in a non-owneroccupied building in Northern Virginia in over 10 years, as AWS augments its current 230,000-sf footprint at 12900 Worldgate Drive. AWS and its Fortune 12 tech-company parent have been active in the data center space in Loudoun County, but the new deal signals a desire to bolster this digital presence with a physical one. The next-largest deals of the quarter in Reston/ Herndon were Micropact s 42,000-sf renewal at 12901 Worldgate Drive, the GSA s 20,000 sf renewal at 12825 Worldgate Drive, and Penn State University s 19,700-sf new lease at 1850 Centennial Park Drive. One location captured three move-ins during Q2 2017: Ellucian (97,000 sf), CDW (32,000 sf) and Volkswagen (32,000 sf) occupied 2003 Edmund Halley Drive. Other notable move-ins included Iron Bow taking over 46,000 sf at 2303 Dulles Station Boulevard and SAP occupying 26,000 sf at 2355 Dulles Corner Boulevard. Cox relocated from 94,000 sf at 3080 Centreville Road to less than half that footprint at 13900 Lincoln Park Drive, and K12 put 33,000 sf of sublet space on the market at 13241 Woodland Park Drive. Rents in all classes remained virtually unchanged from a year ago. Square Feet, 000 s MSF Net Absorption Deliveries 2,500 2,000 1,500 1,000 500 0-500 25% 20% 15% 10% 5% 0% 07 08 09 10 11 12 13 14 15 16 17 Net Absorption Deliveries Rate New Leasing Activity 2.50 2.00 1.50 1.00 0.50 0.00 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Q1 Q2 Q3 Q4 Rate $32 $30 Outlook The Reston/Herndon submarket s makeup of highly educated workers, technology and contractor firms, exposure to private business and public contracts, and affordable real estate compared to downtown Washington, DC, San Francisco, Boston, and New York are all factors which may add further fuel to the fire of tech industry growth. Full Service PSF $28 $26 $24 $22 $20 2012 2013 2014 2015 2016 2017 Class A Class B cushmanwakefield.com 11

Route 50/66 Market Indicators *Arrows = Current Qtr Trend 22.6% Net Absorption 61,665 SF Under Construction 385,000 SF Deliveries 0 SF $26.84 FS The Merrifield submarket s vacancy rate declined from 21.9% in Q1 2017 to 20.3% in the second quarter, mainly due to Inova s 42,000-square-foot (sf) expansion at 8111 Gatehouse Road. Still, the current vacancy rate is still above the five-year running average of 18.5%. The Fairfax/Oakton/Vienna submarket s vacancy rate moved the other direction, experiencing a slight uptick from 23.8% in Q1 2017 to 24.3% in Q2 2017. The increase was due primarily to Siemens vacating 38,000 sf at 4401 Fair Lakes Court as the company consolidates into other offices in Crystal City and Reston. This submarket s current vacancy rate is well above its five-year running average of 18.7% and nearly matches the 10-year high of 24.7% registered in the fourth quarter of 2016. The five largest deals of the quarter were all renewals: Accenture/ ASM renewed for 92,000 sf at 4050 Legato Road, CGI for 42,500 sf at 11325 Random Hills Road, Leidos for 39,000 sf at 2650 Park Tower Drive, Serco for 32,000 sf at 11781 Lee Jackson Highway, and New Editions for 10,000 sf at 103 West Broad Street. The largest new lease was signed by ASRC Federal for 10,000 sf at 2941 Fairview Park Drive. One notable sales transaction of the quarter was the purchase of 11320 Random Hills Road by Boyd Watterson from Colony Realty Partners for $23.5 million ($169/sf). This is a significant discount from the $40.5 million price that Colony Realty Partners paid for its original purchase of the property in November 2005. Several other properties traded in the second quarter at significant discounts, including 6910 Richmond Highway ($7.1 million, a 71.2% discount from the Q4 2006 sales price), 3076 Pender Drive ($5.6 million, a 39.4% discount from the Q1 2007 sales price), and 3702 Pender Drive ($5.6 million, a 63.8% discount from the Q4 2006 sales price). Square Feet, 000 s Net Absorption Deliveries 400 200 0-200 -400-600 -800 07 08 09 10 11 12 13 14 15 16 17 Net Absorption Deliveries 30% 25% 20% 15% 10% 5% 0% Merrifield Rate Fairfax/Oakton/Vienna Rate New Leasing Activity 1.40 1.20 1.00 MSF 0.80 0.60 0.40 0.20 Rate 0.00 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Q1 Q2 Q3 Q4 $34 $32 Outlook It should be noted that most of these properties were purchased at the top of the investment cycle, and the discounts were significant. This may indicate lagging investor demand for buildings in the I-66 corridor that lack walkable retail amenities. Full Service PSF $30 $28 $26 $24 $22 2012 2013 2014 2015 2016 2017 Merrifield/Route 50 Fairfax/Oakton/Vienna Cushman & Wakefield 12

Route 28 South/Chantilly Market Indicators *Arrows = Current Qtr Trend 17.7% Net Absorption 221,595 SF Under Construction 665,000 SF Deliveries 0 SF $25.56 FS Absorption in the Route 28 South submarket was strong in the second quarter totaling 239,000 square feet (sf). declined further to 17.7%, a year-over-year decrease of 640 basis points (BP) and its lowest level since the third quarter of 2012. This positive absorption can be attributed to a 160,000-sf, fullbuilding move-in at 4870 Stonecroft Boulevard, a 44,000-sf move-in by SOC at 3975 Virginia Mallory Drive, and a 42,000-sf move-in by Cox Communications at 13900 Lincoln Park Drive. Leasing activity for the second quarter came in at a moderate 69,000 sf, mainly due to three leases: L3 Technologies signing for 21,000 sf at 14100 Park Meadow Drive, AbleVets for 21,000 sf at 15049 Conference Center Drive, and Intergraph for 17,000 sf at 14291 Park Meadow Drive. There were also two large renewals, as the DEA re-committed to 72,000 sf at 14560 Avion Parkway, and Fulcrum IT renewed for 61,000 sf at 5870 Trinity Parkway. Direct asking rental rates in the submarket have remained virtually unchanged over the past three years, and currently stand at $25.84 per square foot (psf) on a full service basis for all classes and $27.55 psf for Class A space. Net Absorption Deliveries Square Feet, 000 s 1,200 1,000 800 600 400 200 0-200 -400-600 07 08 09 10 11 12 13 14 15 16 17 Net Absorption Deliveries Rate New Leasing Activity 0.90 0.80 30% 25% 20% 15% 10% 5% 0% Rate Colony Realty Partners sold Vencore s headquarters building Stonegate II (15052 Conference Center Drive) to Gramercy for $27.8 million ($197/sf), a 37.0% discount from the original Q3 2007 sales price of $44.0 million. MSF 0.70 0.60 0.50 0.40 0.30 0.20 0.10 0.00 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Q1 Q2 Q3 Q4 $30 Outlook President Trump s proposed Defense budget marks an increase in funding from that proposed by the Obama administration. The proposed Defense budget saw further increases from the House Armed Services Committee and those increases garnered initial passage by the full House of Representatives. These addition Defense dollars could benefit the multiple federal agencies and associated contractors in the Route 28 South submarket. Final passage of the budget has yet to take place, but the indicators are bullish. Full Service PSF $28 $26 $24 $22 $20 $18 2012 2013 2014 2015 2016 2017 Class A Class B cushmanwakefield.com 13

Loudoun County Market Indicators *Arrows = Current Qtr Trend 14.7% Net Absorption 34,285 SF Under Construction 72,000 SF Deliveries 0 SF $23.85 FS The Loudoun County submarket began 2017 with a strong 68,411 square feet (sf) of positive absorption in the first quarter, followed by 34,285 sf of absorption in the second. Small-to-medium sized tenants accounted for the majority of move-ins in the second quarter. The submarket s vacancy rate hit 14.7% in the second quarter of 2017 the lowest rate in over 10 years. Class A vacancy declined from 15.9% a year ago to 12.2% at the end of Q2 2017, as tenants expressed a preference for newer and higher-quality buildings. This Class A vacancy is extremely healthy, and is the third-lowest in Northern Virginia after Old Town and Ballston. The largest lease of the quarter was that of DRS Technologies, which signed for 40,000 sf at 21345 Ridgetop Circle, followed by Epsilon Data Management, which signed for 12,000 sf at 19775 Belmont Executive Plaza. Rental rates for all classes remained virtually unchanged from both the first quarter of the year as well as the second quarter of 2016. The most significant sales transaction of the quarter was Kaiser Permanente s purchase of its Ashburn Medical Center at 43480 Yukon Drive for $14.1 million ($236/sf) from The Lenkin Company. Net Absorption Deliveries Square Feet, 000 s 600 500 400 300 200 100 0-100 07 08 09 10 11 12 13 14 15 16 17 Net Absorption Deliveries Rate New Leasing Activity 0.90 0.80 0.70 0.60 25% 20% 15% 10% 5% 0% Rate MSF 0.50 0.40 0.30 0.20 0.10 0.00 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Q1 Q2 Q3 Q4 $28 $26 Outlook Many active tenants in the Loudoun County submarket have indicated a preference for Class A office space with retail amenities, leading to lease-up in office projects in and adjacent to One Loudoun, Loudoun Station and other walkable projects. With Class A vacancy declining, some medium-to-large tenants have expressed difficulty in finding blocks of space in amenity-rich sections of the submarket. Full Service PSF $24 $22 $20 $18 $16 2012 2013 2014 2015 2016 2017 Class A Class B Cushman & Wakefield 14

Appendix Table Summaries Metro Washington Office Market Summary 15 Employment Data 15 Office Availability,, and Net Absorption 16 Trailing 12-Month Data 17 Historical Year-End Data 18 Market Statistics by Class 19-20 Survey of New Office Space by Submarket 21-24 Methodology & Definitions 25 Metro Washington Office Market Summary: Second Quarter 2017p Inventory Total Vacant Space Metro Washington Current Employment Data Rate Q2 2017 Absorption Year to Date Absorption Washington, DC 108,148,369 13,346,910 12.3% 215,354 258,710 Northern Virginia 130,274,770 27,140,899 20.8% 650,110 455,553 Suburban Maryland 59,443,704 11,763,916 19.8% -199,232-113,862 Regional Totals 297,866,843 52,251,725 17.5% 666,232 600,401 Nonfarm Employment (Jan-Jun 2016) Nonfarm Employment (Jan-Jun 2017p) Jobs Added/ Lost* Percent Change Washington, DC 780,867 789,117 8,250 1.1% Northern Virginia 1,433,750 1,459,700 25,950 1.8% Suburban Maryland 987,383 1,011,600 24,217 2.5% Regional Totals 3,218,750 3,270,567 51,817 1.6% SOURCE: U.S. Bureau of Labor Statistics (Not seasonally adjusted) * Average per year to date p - preliminary cushmanwakefield.com 15

Appendix Office Availability,, and Net Absorption, Second Quarter 2017p Total Inventory New/Relet Space Available Sublet Space Available Total Space Available Rate New/Relet Absorption Sublet Absorption Total Net Absorption Rosslyn 8,638,623 2,286,828 83,524 2,370,352 27.4% 59,984 (5,182) 54,802 Courthouse/ Clarendon/Virginia Square 5,531,747 815,577 53,526 869,103 15.7% 56,938 2,998 59,936 Ballston 7,095,248 1,179,285 44,380 1,223,665 17.2% 157,769 (10,414) 147,355 Crystal City/Pentagon City 10,677,069 2,330,514 22,220 2,352,734 22.0% (41,436) 15,902 (25,534) Arlington County 31,942,687 6,612,204 203,650 6,815,854 21.3% 233,255 3,304 236,559 RB Corridor 21,265,618 4,281,690 181,430 4,463,120 21.0% 274,691 (12,598) 262,093 Old Town 7,991,666 676,100 62,840 738,940 9.2% (332) 1,621 1,289 I-395 Corridor 6,058,050 2,336,401 5,162 2,341,563 38.7% 13,724 2,000 15,724 Huntingon/Eisenhower 2,423,709 827,188 28,839 856,027 35.3% 1,869 (8,017) (6,148) City of Alexandria 16,473,425 3,839,689 96,841 3,936,530 23.9% 15,261 (4,396) 10,865 Inside the Beltway 48,416,112 10,451,893 300,491 10,752,384 22.2% 248,516 (1,092) 247,424 Annandale/Baileys 1,369,626 373,405 12,584 385,989 28.2% 385 0 385 Merrifield/Route 50 6,608,194 1,279,350 59,530 1,338,880 20.3% 82,788 27,238 110,026 Fairfax/Oakton/Vienna 9,509,467 2,206,239 104,658 2,310,897 24.3% (44,566) (3,795) (48,361) Tysons Corner 22,920,597 4,831,842 126,789 4,958,631 21.6% (62,679) 31,624 (31,055) Reston/Herndon 24,230,837 3,498,919 512,042 4,010,961 16.6% 80,673 (15,606) 65,067 Rt 28 S/Chantilly 8,675,922 1,343,007 196,461 1,539,468 17.7% 229,595 (8,000) 221,595 Springfield 3,268,420 1,058,474 8,421 1,066,895 32.6% 50,744 0 50,744 Fairfax County 76,583,063 14,591,236 1,020,485 15,611,721 20.4% 336,940 31,461 368,401 50-66 Corridor 16,117,661 3,485,589 164,188 3,649,777 22.6% 38,222 23,443 61,665 Loudoun County 5,275,595 711,139 65,655 776,794 14.7% 42,091 (7,806) 34,285 Outside the Beltway 81,858,658 15,302,375 1,086,140 16,388,515 20.0% 379,031 23,655 402,686 Northern Virginia 130,274,770 25,754,268 1,386,631 27,140,899 20.8% 627,547 22,563 650,110 1 The Rosslyn/Ballston (R/B) corridor is comprised of Rosslyn, Clarendon/Courthouse, Virginia Square, and Ballston submarkets. 2 Inside the Beltway is comprised of Arlington County and Alexandria/Outside the Beltway is comprised of Fairfax and Loudoun Counties 3 The 50/66 corridor is comprised of Merrifield, Vienna, Oakton, Fairfax Center, and Fairfax City submarkets. ****New Space Available and New Space Absorption based on buildings delivered 2005 to present P - Preliminary Cushman & Wakefield 16

Appendix Trailing 12-Month Data Total Office Inventory Office Rate Total Office Absorption 3rd Qtr 2016 4th Qtr 2016 1st Qtr 2017 2nd Qtr 2017 3rd Qtr 2016 4th Qtr 2016 1st Qtr 2017 2nd Qtr 2017 3rd Qtr 2016 4th Qtr 2016 1st Qtr 2017 2nd Qtr 2017 Rosslyn 8,638,623 8,638,623 8,638,623 8,638,623 27.8% 27.7% 28.1% 27.4% (10,550) 6,012 (31,821) 54,802 Courthouse/ Clarendon/ Virginia Square 5,531,747 5,531,747 5,531,747 5,531,747 18.1% 18.7% 16.8% 15.7% 2,303 (31,839) 106,792 59,936 Ballston 7,095,248 7,095,248 7,095,248 7,095,248 19.4% 19.4% 19.3% 17.2% 106,082 (1,437) 5,401 147,355 Crystal City/ Pentagon City 10,945,402 10,677,069 10,677,069 10,677,069 22.3% 23.1% 21.8% 22.0% 140,289 (269,571) 144,529 (25,534) Arlington County 32,211,020 31,942,687 31,942,687 31,942,687 22.4% 22.8% 22.1% 21.3% 238,124 (296,835) 224,901 236,559 RB Corridor 21,265,618 21,265,618 21,265,618 21,265,618 22.5% 22.6% 22.2% 21.0% 97,835 (27,264) 80,372 262,093 Old Town 7,991,666 7,991,666 7,991,666 7,991,666 8.4% 9.1% 9.3% 9.2% 67,124 (57,706) (10,856) 1,289 I-395 Corridor 6,058,050 6,058,050 6,058,050 6,058,050 38.7% 38.0% 38.9% 38.7% (52) 46,197 (56,187) 15,724 Huntington/ Eisenhower 2,423,709 2,423,709 2,423,709 2,423,709 34.6% 34.5% 35.1% 35.3% (14,141) 1,827 (13,778) (6,148) City of Alexandria 16,473,425 16,473,425 16,473,425 16,473,425 23.4% 23.5% 24.0% 23.9% 52,931 (9,682) (80,821) 10,865 Inside the Beltway 48,684,445 48,416,112 48,416,112 48,416,112 22.8% 23.0% 22.7% 22.2% 291,055 (306,517) 144,080 247,424 Annandale/Baileys 1,369,626 1,369,626 1,369,626 1,369,626 29.5% 30.1% 31.2% 28.2% (7,771) (7,853) (15,973) 385 Merrifield/Route 50 6,608,194 6,608,194 6,608,194 6,608,194 19.0% 17.5% 21.9% 20.3% (104,618) 96,690 (292,662) 110,026 Fairfax/Oakton/Vienna 9,509,467 9,509,467 9,509,467 9,509,467 23.1% 24.7% 23.8% 24.3% (96,712) (157,072) 87,193 (48,361) Tysons Corner 23,055,893 22,920,597 22,920,597 22,920,597 20.7% 21.7% 21.5% 21.6% 118,512 (204,201) (15,532) (31,055) Reston/Herndon 24,230,837 24,230,837 24,230,837 24,230,837 16.6% 16.2% 16.7% 16.6% (31,500) 100,592 (127,990) 65,067 Rt 28 S/Chantilly 8,675,922 8,675,922 8,675,922 8,675,922 21.6% 21.0% 19.8% 17.7% 246,981 52,326 18,003 221,595 Springfield 3,268,420 3,268,420 3,268,420 3,268,420 32.3% 32.4% 34.2% 32.6% 17,106 (1,848) (60,087) 50,744 Fairfax County 76,718,359 76,583,063 76,583,063 76,583,063 20.3% 20.5% 20.8% 20.4% 141,998 (121,366) (407,048) 368,401 50-66 Corridor 16,117,661 16,117,661 16,117,661 16,117,661 21.4% 21.8% 23.0% 22.6% (201,330) (60,382) (205,469) 61,665 Loudoun County 5,121,795 5,121,795 5,066,595 5,275,595 18.2% 18.2% 16.0% 14.7% 9,935 (3,527) 68,411 34,285 Outside the Beltway 81,840,154 81,704,858 81,649,658 81,858,658 20.2% 20.3% 20.5% 20.0% 151,933 (124,893) (338,637) 402,686 Northern Virginia 21.1% 21.3% 21.3% 20.8% 442,988 (431,410) (194,557) 650,110 1 The Rosslyn/Ballston (R/B) corridor is comprised of Rosslyn, Clarendon/Courthouse, Virginia Square, and Ballston submarkets. 2 Inside the Beltway is comprised of Arlington County and Alexandria/Outside the Beltway is comprised of Fairfax and Loudoun Counties. 3 The 50/66 corridor is comprised of Merrifield, Vienna, Oakton, Fairfax Center, and Fairfax City submarkets. 4 The I-395 and Springfield/Newington submarkets were updated in the second quarter of 2012 with additional inventory. p- preliminary cushmanwakefield.com 17

Appendix Historical Year-End Data Total Office Inventory Office Rate Total Annual Absorption 2015 2016 2017p 2015 2016 2017p 2015 2016 2017p Rosslyn 8,613,043 8,638,623 8,638,623 29.1% 27.7% 27.4% 159,209 9,470 22,981 Courthouse/Clarendon/ Virginia Square 5,531,747 5,531,747 5,531,747 21.7% 18.7% 15.7% (81,594) (7,256) 166,728 Ballston 7,076,618 7,095,248 7,095,248 18.9% 19.4% 17.2% 127,316 60,792 152,756 Crystal City/Pentagon City 10,945,402 10,677,069 10,677,069 21.3% 23.1% 22.0% 346,228 (462,146) 118,995 Arlington County 32,166,810 31,942,687 31,942,687 22.9% 22.8% 21.3% 551,159 (399,140) 461,460 RB Corridor 21,221,408 21,265,618 21,265,618 23.7% 22.6% 21.0% 204,931 63,006 342,465 Old Town 8,191,666 7,991,666 7,991,666 10.2% 9.1% 9.2% (82,120) (55,877) (9,567) I-395 Corridor 6,058,050 6,058,050 6,058,050 37.3% 38.0% 38.7% (227,461) 136,184 (40,463) Huntingon/Eisenhower 2,742,707 2,423,709 2,423,709 42.3% 34.5% 35.3% (17,885) (11,038) (19,926) City of Alexandria 16,992,423 16,473,425 16,473,425 25.0% 23.5% 23.9% (327,466) 69,269 (69,956) Inside the Beltway 49,159,233 48,416,112 48,416,112 23.6% 23.0% 22.2% 223,693 (329,871) 391,504 Annandale/Baileys 1,358,705 1,369,626 1,369,626 30.4% 30.1% 28.2% (97,367) 12,058 (15,588) Merrifield/Route 50 6,608,194 6,608,194 6,608,194 20.2% 17.5% 20.3% (106,447) 112,725 (182,636) Fairfax/Oakton/Vienna 9,505,603 9,509,467 9,509,467 17.4% 24.7% 24.3% 5,921 (477,161) 38,832 Tysons Corner 23,240,699 22,920,597 22,920,597 19.1% 21.7% 21.6% 67,379 (76,977) (46,587) Reston/Herndon 24,690,837 24,230,837 24,230,837 16.4% 16.2% 16.6% 268,104 266,554 (62,923) Rt 28 S/Chantilly 9,242,182 8,675,922 8,675,922 24.8% 21.0% 17.7% 41,794 431,906 239,598 Springfield 3,268,420 3,268,420 3,268,420 35.1% 32.4% 32.6% 73,408 (28,250) (9,343) Fairfax County 77,914,640 76,583,063 76,583,063 19.7% 20.5% 20.4% 252,792 240,855 (38,647) 50-66 16,113,797 16,117,661 16,117,661 18.5% 21.8% 22.6% (100,526) (364,436) (143,804) Loudoun County 5,121,795 5,121,795 5,275,595 20.3% 18.2% 14.7% 74,754 40,004 102,696 Outside the Beltway 83,036,435 81,704,858 81,858,658 19.7% 20.3% 20.0% 327,546 280,859 64,049 Northern Virginia 132,195,668 130,120,970 130,274,770 21.2% 21.3% 20.8% 551,239 (49,012) 455,553 1 Inside the Beltway is comprised of Arlington County and Alexandria/Outside the Beltway is comprised of Fairfax and Loudoun Counties 2 The Rosslyn/Ballston (R/B) corridor is comprised of Rosslyn, Clarendon/Courthouse, Virginia Square, and Ballston submarkets. 3 The 50/66 corridor is comprised of Merrifield, Vienna, Oakton, Fairfax Center, and Fairfax City submarkets. 4 The I-395 and Springfield/Newington submarkets were updated in the second quarter of 2012 with additional inventory. Cushman & Wakefield 18

Market Statistics Northern Virginia 2nd Quarter 2017 Market Statistics Buildings Total Inventory (SF) New/Relet (%) Sublet (%) Total * (%) Net Absorption Current QTR (SF) Under Construction (SF) Average (FS) Alexandria Class A 46 7,855,196 20.0% 0.6% 20.7% 393 720,000 $34.16 B 64 6,746,020 31.1% 0.4% 31.5% (2,817) $28.91 C 27 1,872,209 9.1% 1.0% 10.1% 13,289 $24.88 TOTAL 137 16,473,425 23.3% 0.6% 23.9% 10,865 720,000 $31.22 RB Corridor Class A 49 12,757,247 17.9% 1.2% 19.0% 172,268 862,729 $44.25 B 35 6,227,522 21.8% 0.4% 22.2% 87,753 - $41.64 C 19 2,280,849 28.2% 0.5% 28.7% 2,072 - $35.43 TOTAL 103 21,265,618 20.1% 0.9% 21.0% 262,093 862,729 $42.40 Crystal City/Pentagon City Class A 25 7,794,322 16.9% 0.2% 17.2% (24,465) 100,000 $38.91 B 13 2,882,747 35.1% 0.1% 35.2% (1,069) $34.13 C - 0 0.0% 0.0% 0.0% - N/A TOTAL 38 10,677,069 21.8% 0.2% 22.0% (25,534) 100,000 $36.71 Tysons Class A 52 13,255,289 20.5% 0.6% 21.1% (27,886) 1,555,419 $38.09 B 61 7,622,416 22.8% 0.5% 23.4% (21,841) $29.58 C 29 2,042,892 18.5% 0.1% 18.6% 18,672 $24.77 TOTAL 142 22,920,597 21.1% 0.6% 21.6% (31,055) 1,555,419 $31.94 Reston/Herndon Class A 106 17,967,174 14.3% 2.3% 16.6% 44,001 354,913 $29.86 B 63 5,589,260 15.1% 1.7% 16.8% 1,913 $25.15 C 15 674,403 12.5% 0.3% 12.8% 19,153 $18.03 TOTAL 184 24,230,837 14.4% 2.1% 16.6% 65,067 354,913 $27.99 * Current - the vacancy rate is calculated using the combined total of vacant direct, sublease and new space. cushmanwakefield.com 19

Market Statistics Northern Virginia 2nd Quarter 2017 Market Statistics Buildings Total Inventory (SF) New/Relet (%) Sublet (%) Total * (%) Net Absorption Current QTR (SF) Under Construction (SF) Average (FS) Merriield/Route 50 Class A 20 3,616,798 27.4% 1.0% 28.4% (9,258) - $31.99 B 15 1,566,456 12.1% 1.4% 13.4% 100,292 $26.49 C 20 1,424,940 7.1% 0.0% 7.1% 18,992 $22.31 TOTAL 55 6,608,194 19.4% 0.9% 20.3% 110,026 - $29.91 Fairfax/Oakton/Vienna Class A 25 4,365,706 17.3% 0.3% 17.6% (5,808) 385,000 $30.07 B 47 4,410,647 28.5% 2.1% 30.6% (42,861) $23.89 C 12 733,114 26.2% 0.0% 26.2% 308 $23.22 TOTAL 84 9,509,467 23.2% 1.1% 24.3% (48,361) 385,000 $24.71 Route 28 South Class A 49 6,127,730 13.5% 1.2% 14.7% 233,540 665,000 $27.32 B 27 2,548,192 20.2% 4.9% 25.1% (11,945) $23.31 C - 0 0.0% 0.0% 0.0% - N/A TOTAL 76 8,675,922 15.5% 2.3% 17.7% 221,595 665,000 $25.56 Loudoun County Class A 40 3,867,941 11.1% 1.1% 12.2% 33,434 72,000 $25.64 B 18 1,407,654 19.9% 1.8% 21.7% 851 $21.38 C - 0 0.0% 0.0% 0.0% - N/A TOTAL 58 5,275,595 13.5% 1.2% 14.7% 34,285 72,000 $23.94 Northern Virginia Class A 427 79,919,628 17.9% 1.1% 19.0% 425,472 4,715,061 $34.96 B 350 39,611,961 23.9% 1.1% 25.0% 142,181 $29.82 C 143 10,743,181 18.6% 0.3% 19.0% 82,457 $28.08 TOTAL 920 130,274,770 19.8% 1.1% 20.8% 650,110 4,715,061 $32.16 * Current - the vacancy rate is calculated using the combined total of vacant direct, sublease and new space. Cushman & Wakefield 20

Northern Virginia Survey of Office Space Under Construction/Under Renovation Alexandria BUILDING ADDRESS OWNER/DEVELOPER RENTAL RATE STATUS 2401 Eisenhower Avenue National Science Foundation HQ DELIVERY DATE RENTABLE BUILDING AREA AVAILABLE SPACE PERCENT PRELEASED MAJOR TENANTS USAA N/A U/C 3Q17 720,000 0 100% National Science Foundation Total 720,000-100% Crystal City BUILDING ADDRESS OWNER/DEVELOPER RENTAL RATE STATUS DELIVERY DATE RENTABLE BUILDING AREA AVAILABLE SPACE 3000 Potomac Avenue National Industries for the Blind N/A U/C 2Q18 100,000 0 100% PERCENT PRELEASED MAJOR TENANTS National Industries for the Blind, Kaiser Permanente Total 100,000-100% Fairfax/Oakton/Vienna BUILDING ADDRESS OWNER/DEVELOPER RENTAL RATE STATUS DELIVERY DATE RENTABLE BUILDING AREA AVAILABLE SPACE PERCENT PRELEASED MAJOR TENANTS 4097 Monument Corner Drive Peterson Companies N/A U/C 3Q17 150,000 32,000 79% Apple Federal Credit Union 1041 Electric Avenue Navy Federal Credit Union Navy Federal Credit Union N/A U/C 3Q17 235,000 0 100% Navy Federal Credit Union Total 385,000 32,000 92% Reston/Herndon BUILDING ADDRESS OWNER/DEVELOPER RENTAL RATE STATUS DELIVERY DATE RENTABLE BUILDING AREA AVAILABLE SPACE PERCENT PRELEASED MAJOR TENANTS 1900 Reston Metro Plaza Comstock Partners N/A U/C 4Q17 354,913 354,913 0% N/A Total 354,913 354,913 0% Status Operating Expense and Real Estate Tax Base U/C = Under Construction FS = Full Service NN = Plus Electric & Char N/A = No Space Available U/R = Under Renovation N = Plus Electric NT = Plus Taxes NNN = Net of all Operating Expenses and Taxes cushmanwakefield.com 21

Northern Virginia Survey of Office Space Under Construction/Under Renovation RB Corridor BUILDING ADDRESS OWNER/DEVELOPER RENTAL RATE STATUS 1201 Wilson Boulevard CEB Tower DELIVERY DATE RENTABLE BUILDING AREA AVAILABLE SPACE PERCENT PRELEASED MAJOR TENANTS Monday Properties N/A U/C 4Q17 521,000 195,000 63% CEB 2311 Wilson Boulevard Carr Properties N/A U/C 3Q17 175,000 75,262 57% Opower, Bean Kinney & Korman, AHRI 1000 North Glebe Road Marymount University N/A U/C 3Q17 166,767 56,631 66% Marymount University Total 862,767 326,893 62% Route 28 South BUILDING ADDRESS OWNER/DEVELOPER RENTAL RATE STATUS DELIVERY DATE RENTABLE BUILDING AREA AVAILABLE SPACE PERCENT PRELEASED MAJOR TENANTS 14757 Conference Center Drive COPT N/A U/C 4Q17 240,000 0 0% GSA/Contractor 13900 Air and Space Museum Parkway Peterson Companies N/A U/C 1Q18 425,000 0 0% GSA/Contractor Total 665,000-100% Tysons Corner BUILDING ADDRESS OWNER/DEVELOPER RENTAL RATE STATUS DELIVERY DATE RENTABLE BUILDING AREA AVAILABLE SPACE PERCENT PRELEASED MAJOR TENANTS Capital One Tower Capital One N/A U/C 4Q18 975,000 0 100% Capital One 8350 Broad Street Meridian Group N/A U/C 1Q19 436,813 331,800 24% Tegna 1640 Boro Place Meridian Group N/A U/C 1Q19 143,606 143,606 0% N/A Total 1,555,419 475,406 69% Northern Virginia Summary RENTABLE BUILDING AREA AVAILABLE SPACE 2017 DELIVERIES 2,562,680 713,806 72% 2018 DELIVERIES 1,500,000 0 100% 2019 DELIVERIES 580,419 475,406 18% 2020 DELIVERIES 0 0 N/A TOTAL CURRENTLY UNDER CONSTRUCTION/RENOVATION 4,643,099 1,189,212. PERCENT PRELEASED Status Operating Expense and Real Estate Tax Base U/C = Under Construction FS = Full Service NN = Plus Electric & Char N/A = No Space Available U/R = Under Renovation N = Plus Electric NT = Plus Taxes NNN = Net of all Operating Expenses and Taxes Cushman & Wakefield 22

Northern Virginia Survey of New Office Space 2017 Deliveries BUILDING ADDRESS OWNER/DEVELOPER STATUS RENTAL RATE SUBMARKET RENTABLE BUILDING AREA NEW SPACE AVAILABLE VACANCY RATE (AS OF CURRENT QUARTER)* PERCENT LEASED UPON DELIVERY 309 Kellys Ford Drive Oaklawn Development Partners Delivered 1Q17 $28.00 - $29.00 FS Loudoun County 64,800 0 0% 100% 2016 Deliveries BUILDING ADDRESS OWNER/DEVELOPER STATUS RENTAL RATE SUBMARKET RENTABLE BUILDING AREA NEW SPACE AVAILABLE VACANCY RATE (AS OF CURRENT QUARTER)* PERCENT LEASED UPON DELIVERY 1775 Tysons Boulevard Macerich Delivered 2Q16 $55.00-$65.00 Tysons 476,000 122,212 26% 70% 4850 Stonecroft Boulevard COPT Delivered 1Q16 N/A Route 28 South 160,000 0 100% 0% 22318 Glenn Drive First Potomac Delivered 3Q16 N/A Loudoun County 182,000 0 0% 100% Total 818,000 122,212 15% 63% 2015 Deliveries BUILDING ADDRESS OWNER/DEVELOPER STATUS RENTAL RATE SUBMARKET RENTABLE BUILDING AREA NEW SPACE AVAILABLE VACANCY RATE (AS OF CURRENT QUARTER)* PERCENT LEASED UPON DELIVERY 43777 Central Station Drive Comstock Delivered 4Q15 $28.00 - $29.00 FS Loudoun County 100,000 28,370 28% 50% 4870 Stonecroft Boulevard COPT Delivered 4Q15 N/A Route 28 South 160,000 0 0% 100% Total 260,000 28,370 11% 81% cushmanwakefield.com 23