The CoStar Office Report. T h i r d Q u a r t e r National Office Market

The CoStar Office Report T h i r d Q u a r t e r 2 0 1 6

Third Quarter 2016 National Table of Contents Table of Contents................................................................. A Methodology...................................................................... B Terms & Definitions................................................................ C Market Highlights & Overview........................................................ 1 Inventory & Development Analysis.................................................... 16 Inventory & Development Analysis Select Top Deliveries Select Top Under Construction Properties Figures at a Glance by Class & Submarket Figures at a Glance Grouped by CBD vs Suburban Historical Figures at a Glance Leasing Activity Analysis............................................................ 34 Select Top Lease Transactions Sales Activity Analysis.............................................................. 36 Sales Activity Analysis Select Top Sales Transactions 2016 CoStar Group, Inc. The CoStar Office Report A

National Third Quarter 2016 Methodology The CoStar Office Report, unless specifically stated otherwise, calculates office statistics using CoStar Group s entire database of existing and under construction office buildings in each metropolitan area. Included are office, office condominium, office loft, office medical, all classes and all sizes, and both multi-tenant and single-tenant buildings, including owner-occupied buildings. CoStar Group's global database includes approximately 95.6 billion square feet of coverage in 4.4 million properties. All rental rates reported in the CoStar Office Report have been converted to a Full Service equivalent rental rate. CoStar regularly opens new markets to expand its geographic coverage which results in varying start dates for historical data. Due to differences in market start dates and a desire to show as long a historical timeframe as possible, only the following markets are included in the historical charts within this report: Atlanta, Austin, Baltimore, Boston, Broward County, Charlotte, Chicago, Cincinnati, Cleveland, Columbus, Dallas/Ft Worth, Dayton, Denver, Detroit, East Bay/Oakland, Houston, Indianapolis, Inland Empire (California), Jacksonville (Florida), Kansas City, Long Island (New York), Los Angeles, Memphis, Miami-Dade County, Nashville, Northern New Jersey, Orange (California), Orlando, Palm Beach County, Philadelphia, Phoenix, Pittsburgh, Raleigh/Durham, Sacramento, San Diego, San Francisco, Seattle/Puget Sound, South Bay/San Jose, St. Louis, Tampa/ St Petersburg, Washington, and Westchester/So Connecticut. When ever possible all markets are included to provide as broad as possible national coverage. The Market Highlights and Overview narrative includes all markets. For information on subscribing to CoStar s other products and services, please contact us at 1-877-7COSTAR, or visit our web site at www.costar.com Copyright 2016 CoStar Group, Inc. All Rights Reserved. Although CoStar makes efforts to ensure the accuracy and reliability of the information contained herein, CoStar makes no guarantee, representation or warranty regarding the quality, accuracy, timeliness or completeness of the information. The publication is provided as is and CoStar expressly disclaims any guarantees, representations or warranties of any kind, including those of MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. CoStar Group, Inc. 1331 L ST NW Washington, DC 20005 (800) 204-5960 www.costar.com NASDAQ: CSGP B The CoStar Office Report 2016 CoStar Group, Inc.

Third Quarter 2016 National Terms & Definitions Availability Rate: The ratio of available space to total rentable space, calculated by dividing the total available square feet by the total rentable square feet. Available Space: The total amount of space that is currently being marketed as available for lease in a given time period. It includes any space that is available, regardless of whether the space is vacant, occupied, available for sublease, or available at a future date. Build-to-Suit: A term describing a particular property, developed specifically for a certain tenant to occupy, with structural features, systems, or improvement work designed specifically for the needs of that tenant. A build-to-suit can be leased or owned by the tenant. In a leased build-to-suit, a tenant will usually have a long term lease on the space. Buyer: The individual, group, company, or entity that has purchased a commercial real estate asset. Cap Rate: Short for capitalization rate. The Cap Rate is a calculation that reflects the relationship between one year s net operating income and the current market value of a particular property. The Cap Rate is calculated by dividing the annual net operating income by the sales price (or asking sales price). CBD: Abbreviation for Central Business District. (See also: Central Business District) Central Business District: The designations of Central Business District (CBD) and Suburban refer to a particular geographic area within a metropolitan statistical area (MSA) describing the level of real estate development found there. The CBD is characterized by a high density, well organized core within the largest city of a given MSA. Class A: A classification used to describe buildings that generally qualify as extremely desirable investment-grade properties and command the highest rents or sale prices compared to other buildings in the same market. Such buildings are well located and provide efficient tenant layouts as well as high quality, and in some buildings, one-ofa-kind floor plans. They can be an architectural or historical landmark designed by prominent architects. These buildings contain a modern mechanical system, and have above-average maintenance and management as well as the best quality materials and workmanship in their trim and interior fittings. They are generally the most attractive and eagerly sought by investors willing to pay a premium for quality. Class B: A classification used to describe buildings that generally qualify as a more speculative investment, and as such, command lower rents or sale prices compared to Class A properties. Such buildings offer utilitarian space without special attractions, and have ordinary design, if new or fairly new; good to excellent design if an older non-landmark building. These buildings typically have average to good maintenance, management and tenants. They are less appealing to tenants than Class A properties, and may be deficient in a number of respects including floor plans, condition and facilities. They lack prestige and must depend chiefly on a lower price to attract tenants and investors. Class C: A classification used to describe buildings that generally qualify as no-frills, older buildings that offer basic space and command lower rents or sale prices compared to other buildings in the same market. Such buildings typically have below-average maintenance and management, and could have mixed or low tenant prestige, inferior elevators, and/or mechanical/electrical systems. These buildings lack prestige and must depend chiefly on a lower price to attract tenants and investors. Construction Starts: Buildings that began construction during a specific period of time. (See also: Deliveries) Contiguous Blocks of Space: Space within a building that is, or is able to be joined together into a single contiguous space. Deliveries: Buildings that complete construction during a specified period of time. In order for space to be considered delivered, a certificate of occupancy must have been issued for the property. Delivery Date: The date a building completes construction and receives a certificate of occupancy. Developer: The company, entity or individual that transforms raw land to improved property by use of labor, capital and entrepreneurial efforts. Direct Space: Space that is being offered for lease directly from the landlord or owner of a building, as opposed to space being offered in a building by another tenant (or broker of a tenant) trying to sublet a space that has already been leased. Existing Inventory: The square footage of buildings that have received a certificate of occupancy and are able to be occupied by tenants. It does not include space in buildings that are either planned, under construction or under renovation. Flex Building: A type of building designed to be versatile, which may be used in combination with office (corporate headquarters), research and development, quasi-retail sales, and including but not limited to industrial, warehouse, and distribution uses. A typical flex building will be one or two stories with at least half of the rentable area being used as office space, have ceiling heights of 16 feet or less, and have some type of drive-in door, even though the door may be glassed in or sealed off. Full Service Rental Rate: Rental rates that include all operating expenses such as utilities, electricity, janitorial services, taxes and insurance. Gross Absorption: The total change in occupied space over a given period of time, counting space that is occupied but not space that is vacated by tenants. Gross absorption differs from leasing Activity, which is the sum of all space leased over a certain period of time. Unless otherwise noted Gross Absorption includes direct and sublease space. Growth in Inventory: The change in size of the existing square footage in a given area over a given period of time, generally due to the construction of new buildings. Industrial Building: A type of building adapted for such uses as the assemblage, processing, and/or manufacturing of products from raw materials or fabricated parts. Additional uses include warehousing, distribution, and maintenance facilities. The primary purpose of the space is for storing, producing, assembling, or distributing product. Landlord Rep: (Landlord Representative) In a typical lease transaction between an owner/landlord and tenant, the broker that represents the interests of the owner/landlord is referred to as the Landlord Rep. Leased Space: All the space that has a financial lease obligation. It includes all leased space, regardless of whether the space is currently occupied by a tenant. Leased space also includes space being offered for sublease. Leasing Activity: The volume of square footage that is committed to and signed under a lease obligation for a specific building or market in a given period of time. It includes direct leases, subleases and renewals of existing leases. It also includes any pre-leasing activity in planned, under construction, or under renovation buildings. Market: Geographic boundaries that serve to delineate core areas that are competitive with each other and constitute a generally accepted primary competitive set of areas. Markets are building-type specific, and are non-overlapping contiguous geographic designations having a cumulative sum that matches the boundaries of the entire Region (See also: Region). Markets can be further subdivided into Submarkets. (See also: Submarkets) Multi-Tenant: Buildings that house more than one tenant at a given time. Usually, multi-tenant buildings were designed and built to accommodate many different floor plans and designs for different 2016 CoStar Group, Inc. The CoStar Office Report C

National Third Quarter 2016 tenant needs. (See also: Tenancy). Net Absorption: The net change in occupied space over a given period of time. Unless otherwise noted Net Absorption includes direct and sublease space. Net Rental Rate: A rental rate that excludes certain expenses that a tenant could incur in occupying office space. Such expenses are expected to be paid directly by the tenant and may include janitorial costs, electricity, utilities, taxes, insurance and other related costs. New Space: Sometimes called first generation space, refers to space that has never been occupied and/or leased by a tenant. Occupied Space: Space that is physically occupied by a tenant. It does not include leased space that is not currently occupied by a tenant. Office Building: A type of commercial building used exclusively or primarily for office use (business), as opposed to manufacturing, warehousing, or other uses. Office buildings may sometimes have other associated uses within part of the building, i.e., retail sales, financial, or restaurant, usually on the ground floor. Owner: The company, entity, or individual that holds title on a given building or property. Planned/Proposed: The status of a building that has been announced for future development but not yet started construction. Preleased Space: The amount of space in a building that has been leased prior to its construction completion date, or certificate of occupancy date. Price/SF: Calculated by dividing the price of a building (either sales price or asking sales price) by the Rentable Building Area (RBA). Property Manager: The company and/or person responsible for the day-to-day operations of a building, such as cleaning, trash removal, etc. The property manager also makes sure that the various systems within the building, such as the elevators, HVAC, and electrical systems, are functioning properly. Quoted Rental Rate: The asking rate per square foot for a particular building or unit of space by a broker or property owner. Quoted rental rates may differ from the actual rates paid by tenants following the negotiation of all terms and conditions in a specific lease. RBA: Abbreviation for Rentable Building Area. (See also: Rentable Building Area) Region: Core areas containing a large population nucleus, that together with adjacent communities have a high degree of economic and social integration. Regions are further divided into market areas, called Markets. (See also: Markets) Relet Space: Sometimes called second generation or direct space, refers to existing space that has previously been occupied by another tenant. Rentable Building Area: (RBA) The total square footage of a building that can be occupied by, or assigned to a tenant for the purpose of determining a tenant s rental obligation. Generally RBA includes a percentage of common areas including all hallways, main lobbies, bathrooms, and telephone closets. Rental Rates: The annual costs of occupancy for a particular space quoted on a per square foot basis. Sales Price: The total dollar amount paid for a particular property at a particular point in time. Sales Volume: The sum of sales prices for a given group of buildings in a given time period. Seller: The individual, group, company, or entity that sells a particular commercial real estate asset. SF: Abbreviation for Square Feet. Single-Tenant: Buildings that are occupied, or intended to be occupied by a single tenant. (See also: Build-to-suit and Tenancy) Sublease Space: Space that has been leased by a tenant and is being offered for lease back to the market by the tenant with the lease obligation. Sublease space is sometimes referred to as sublet space. Submarkets: Specific geographic boundaries that serve to delineate a core group of buildings that are competitive with each other and constitute a generally accepted primary competitive set, or peer group. Submarkets are building type specific (office, industrial, retail, etc.), with distinct boundaries dependent on different factors relevant to each building type. Submarkets are non-overlapping, contiguous geographic designations having a cumulative sum that matches the boundaries of the Market they are located within (See also: Market). Suburban: The Suburban and Central Business District (CBD) designations refer to a particular geographic area within a metropolitan statistical area (MSA). Suburban is defined as including all office inventory not located in the CBD. (See also: CBD) Tenancy: A term used to indicate whether or not a building is occupied by multiple tenants (See also: Multi-tenant) or a single tenant. (See also: Single-tenant) Tenant Rep: Tenant Rep stands for Tenant Representative. In a typical lease transaction between an owner/landlord and tenant, the broker that represents the interests of the tenant is referred to as a Tenant Rep. Time On Market: A measure of how long a currently available space has been marketed for lease, regardless of whether it is vacant or occupied. Under Construction: Buildings in a state of construction, up until they receive their certificate of occupancy. In order for CoStar to consider a building under construction, the site must have a concrete foundation in place. Abbreviated UC. Vacancy Rate: A measurement expressed as a percentage of the total amount of physically vacant space divided by the total amount of existing inventory. Under construction space generally is not included in vacancy calculations. Vacant Space: Space that is not currently occupied by a tenant, regardless of any lease obligation that may be on the space. Vacant space could be space that is either available or not available. For example, sublease space that is currently being paid for by a tenant but not occupied by that tenant, would be considered vacant space. Likewise, space that has been leased but not yet occupied because of finish work being done, would also be considered vacant space. Weighted Average Rental Rate: Rental rates that are calculated by factoring in, or weighting, the square footage associated with each particular rental rate. This has the effect of causing rental rates on larger spaces to affect the average more than that of smaller spaces. The weighted average rental rate is calculated by taking the ratio of the square footage associated with the rental rate on each individual available space to the square footage associated with rental rates on all available spaces, multiplying the rental rate by that ratio, and then adding together all the resulting numbers. Unless specifically specified otherwise, rental rate averages include both Direct and Sublet available spaces. Year Built: The year in which a building completed construction and was issued a certificate of occupancy. YTD: Abbreviation for Year-to-Date. Describes statistics that are cumulative from the beginning of a calendar year through whatever time period is being studied. D The CoStar Office Report 2016 CoStar Group, Inc.

Overview Third Quarter 2016 National U.S. s Vacancy Decreases to 9.9% Net Absorption Positive 36,110,085 SF in the Quarter The U.S. Office market ended the third quarter 2016 with a vacancy rate of 9.9%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 36,110,085 square feet in the third Vacant sublease space increased in the quarter, ending the quarter at 46,002,516 square feet. Rental rates ended the third quarter at $23.97, an increase over the previous A total of 424 buildings delivered to the market in the quarter totaling 20,105,946 square feet, with 147,486,814 square feet still under construction at the end of the Absorption Net absorption for the overall U.S. office market was positive 36,110,085 square feet in the third quarter 2016. That compares to positive 36,130,102 square feet in the second quarter 2016, positive 16,247,146 square feet in the first quarter 2016, and positive 38,193,108 square feet in the fourth quarter 2015. Tenants moving out of large blocks of space in 2016 include: AT&T Wireless moving out of 1,300,000 square feet at 2000 W Att Center Dr in the Chicago market; AIG Global Real Estate moving out of 425,403 square feet at 101 Hudson St in the Northern New Jersey market; and AMEC Paragon moving out of 171,380 square feet at 10777 Clay Rd in the Houston market. Tenants moving into large blocks of space in 2016 include: TIAA moving into 346,081 square feet at 1670 Broadway in the Denver market; Motorola Solutions, Inc. at 1303 E Algonquin Rd in the Chicago market; and United Health Group at 12700 Whitewater Dr in the Minneapolis market. The Class-A office market recorded net absorption of positive 13,444,803 square feet in the third quarter 2016, compared to positive 10,561,284 square feet in the second quarter 2016, positive 9,935,500 in the first quarter 2016, and positive 18,517,088 in the fourth quarter 2015. The Class-B office market recorded net absorption of positive 14,607,060 square feet in the third quarter 2016, compared to positive 16,434,465 square feet in the second quarter 2016, positive 6,670,351 in the first quarter 2016, and positive 15,899,490 in the fourth quarter 2015. The Class-C office market recorded net absorption of positive 8,058,222 square feet in the third quarter 2016 compared to positive 9,134,353 square feet in the second quarter 2016, negative (358,705) in the first quarter 2016, and positive 3,776,530 in the fourth quarter 2015. Net absorption for U.S. s central business district was positive 3,129,715 square feet in the third quarter 2016. That compares to positive 6,091,439 square feet in the second quarter 2016, negative (264,302) in the first quarter 2016, and positive 3,242,993 in the fourth quarter 2015. Net absorption for the suburban markets was positive 32,980,370 square feet in the third quarter 2016. That compares to positive 30,038,663 square feet in second quarter 2016, positive 16,511,448 in the first quarter 2016, and positive 34,950,115 in the fourth quarter 2015. Vacancy The office vacancy rate in the U.S. market area decreased to 9.9% at the end of the third quarter 2016. The vacancy rate was 10.0% at the end of the second quarter 2016, 10.3% at the end of the first quarter 2016, and 10.3% at the end of the Vacancy Rates by Class* 2000-2016 17% Class A Class B Class C Total Market 16% 15% 14% Vacancy Rate 13% 12% 11% 10% 9% 8% 7% 2000 4q 2001 4q 2002 4q 2003 4q 2004 4q 2005 4q 2006 4q 2007 4q 2008 4q 2009 4q 2010 4q 2011 4q 2012 4q 2013 4q 2014 4q 2015 4q * Select markets included in this historical chart - see Methodology page. 2016 CoStar Group, Inc. The CoStar Office Report 1

National Third Quarter 2016 Overview fourth quarter 2015. Class-A projects reported a vacancy rate of 12.1% at the end of the third quarter 2016, 12.1% at the end of the second quarter 2016, 12.1% at the end of the first quarter 2016, and 12.0% at the end of the fourth quarter 2015. Class-B projects reported a vacancy rate of 10.1% at the end of the third quarter 2016, 10.3% at the end of the second quarter 2016, 10.6% at the end of the first quarter 2016, and 10.7% at the end of the fourth quarter 2015. Class-C projects reported a vacancy rate of 6.2% at the end of the third quarter 2016, 6.6% at the end of second quarter 2016, 7.0% at the end of the first quarter 2016, and 7.0% at the end of the fourth quarter 2015. The overall vacancy rate in U.S. s central business district at the end of the third quarter 2016 decreased to 9.8%. The vacancy rate was 9.9% at the end of the second quarter 2016, 10.0% at the end of the first quarter 2016, and 10.0% at the end of the fourth quarter 2015. The vacancy rate in the suburban markets decreased to 9.9% in the third quarter 2016. The vacancy rate was 10.1% at the end of the second quarter 2016, 10.3% at the end of the first quarter 2016, and 10.4% at the end of the fourth quarter 2015. Largest Lease Signings The largest lease signings occurring in 2016 included: the 289,000 square foot lease signed by Georgia Tech at 771 Spring St in the Atlanta market; the 229,000 square foot lease signed by the Environmental Protection Agency at 1201 Elm St in the Dallas/Fort Worth market; and the 694,000 square foot lease signed by Coach, Inc, at 10 Hudson Yards in the New York City market. Sublease Vacancy The amount of vacant sublease space in the U.S. market increased to 46,002,516 square feet by the end of the third quarter 2016, from 42,745,424 square feet at the end of the second quarter 2016. There was 41,874,869 square feet vacant at the end of the first quarter 2016 and 41,284,466 square feet at the end of the fourth quarter 2015. U.S. s Class-A projects reported vacant sublease space of 28,330,235 square feet at the end of third quarter 2016, up from the 26,285,283 square feet reported at the end of the second quarter 2016. There were 25,189,199 square feet of sublease space vacant at the end of the first quarter 2016, and 25,142,003 square feet at the end of the fourth quarter 2015. Class-B projects reported vacant sublease space of 15,996,627 square feet at the end of the third quarter 2016, up from the 14,731,751 square feet reported at the end of the second quarter 2016. At the end of the first quarter 2016 there were 14,869,358 square feet, and at the end of the fourth quarter 2015 there were 14,351,557 square feet vacant. Class-C projects reported decreased vacant sublease space from the second quarter 2016 to the third quarter 2016. Sublease vacancy went from 1,728,390 square feet to 1,675,654 square feet during that time. There was 1,816,312 square feet at the end of the first quarter 2016, and 1,790,906 square feet at the end of the fourth quarter 2015. Sublease vacancy in U.S. s central business district stood at 13,604,666 square feet at the end of the third quarter 2016. It was 12,673,765 square feet at the end of the second quarter 2016, 12,073,788 square feet at the end of the first quarter 2016, and 11,199,630 square feet at the end of the fourth quarter 2015. Sublease vacancy in the suburban markets ended the third quarter 2016 at 32,397,850 square feet. At the end of the second quarter 2016 sublease vacancy was 30,071,659 square feet, was 29,801,081 square feet at the end of the first quarter 2016, and was 30,084,836 square feet at the end of the fourth quarter 2015. Rental Rates The average quoted asking rental rate for available office space, all classes, was $23.97 per square foot per year at the end of the third quarter 2016 in the U.S. market area. This represented a 1.7% increase in quoted rental rates from the end of the second quarter 2016, when rents were reported at $23.57 per square foot. The average quoted rate within the Class-A sector was $30.20 at the end of the third quarter 2016, while Class-B rates stood at $21.28, and Class-C rates at $17.37. At the end of the second quarter 2016, Class-A rates were $29.60 per square foot, Class-B rates were $21.03, and Class-C rates were $17.17. The average quoted asking rental rate in U.S. s CBD was $31.50 at the end of the third quarter 2016, and $22.30 in the suburban markets. In the second quarter 2016, quoted rates were $30.40 in the CBD and $22.09 in the suburbs. Deliveries and Construction During the third quarter 2016, 424 buildings totaling 20,105,946 square feet were completed in the U.S. market area. This compares to 343 buildings totaling 19,417,011 square feet that were completed in the second quarter 2016, 415 buildings totaling 20,502,806 square feet completed in the first quarter 2016, and 26,674,063 square feet in 423 buildings completed in the fourth quarter 2015. There were 147,486,814 square feet of office space under construction at the end of the third quarter 2016. Some of the notable 2016 deliveries include: 10 Hudson Yards, a 1,725,250-square-foot facility that delivered in second quarter 2016 and is now 94% occupied, and 2101 Citywest Blvd - Phillips 66, a 1,100,000-square-foot building that delivered in second quarter 2016 and is now 100% occupied. The largest projects underway at the end of third quarter 2016 were 3 World Trade Center, a 2,861,402-square-foot building with 37% of its space pre-leased, and Apple Headquarters, 2 The CoStar Office Report 2016 CoStar Group, Inc.

Overview Third Quarter 2016 National a 2,800,000-square-foot facility that is 100% pre-leased. Inventory Total office inventory in the U.S. market area amounted to 10,743,752,919 square feet in 521,091 buildings as of the end of the third quarter 2016. The Class-A office sector consisted of 3,404,560,717 square feet in 17,972 projects. There were 199,167 Class-B buildings totaling 4,964,324,617 square feet, and the Class-C sector consisted of 2,374,867,585 square feet in 303,952 buildings. Within the Office market there were 20,147 owner-occupied buildings accounting for 704,756,477 square feet of office space. Sales Activity Tallying office building sales of 15,000 square feet or larger, U.S. office sales figures rose during the second quarter 2016 in terms of dollar volume compared to the first quarter of 2016. In the second quarter, 852 office transactions closed with a total volume of $24,837,534,301. The 852 buildings totaled 84,033,783 square feet and the average price per square foot equated to $295.57 per square foot. That compares to 771 transactions totaling $19,087,174,889 in the first quarter 2016. The total square footage in the first quarter was 78,165,116 square feet for an average price per square foot of $244.19. Total office building sales activity in 2016 was down compared to 2015. In the first six months of 2016, the market saw 1,623 office sales transactions with a total volume of $43,924,709,190. The price per square foot averaged $270.81. In the same first six months of 2015, the market posted 1,664 transactions with a total volume of $48,286,618,428. The price per square foot averaged $279.56. Cap rates have been lower in 2016, averaging 7.14% compared to the same period in 2015 when they averaged 7.19%. One of the largest transactions that has occurred within the last 4 quarters in the U.S. market is the sale of 1285 Avenue of the Americas in New York. This 1,800,000 square foot office building sold for $1,650,000,000, or $916.67 per square foot. The property sold on 5/20/2016, at a 4.0% cap rate. Albany/Schenectady/Troy The Albany/Schenectady/Troy office market saw vacancies fall and rental rates decrease from the second quarter 2016 to the third quarter 2016. The overall vacancy rate currently sits at 4.7%, from 5.3% in the previous Rental rates ended the quarter at $14.96 per square foot, from $15.14 in the previous There was a total of 44,000 square feet that delivered in the quarter, with 230,468 square feet still under construction at the end of the Albuquerque and positive 502,637 square feet of net absorption, Albuquerque s vacancy rate went from 9.4% to 8.1% in the Rental rates went from $15.62 to $15.36 during that time. At the end of the quarter, there was 18,000 square feet underway for future delivery. Anchorage The Anchorage office market reported no new deliveries and no space under construction at the end of the third quarter 2016. With this limited construction activity, net absorption of positive 29,479 square feet caused the vacancy rate to decrease from 5.4% to 5.2% in the Rental rates stood at $27.24. Asheville and positive 100,560 square feet of net absorption, Asheville s vacancy rate went from 3.9% to 3.1% in the Rental rates went from $15.71 to $15.76 during that time. At the end of the quarter, there was 105,000 square feet underway for future delivery. Atlanta The vacancy rate remained unchanged in Atlanta in the third With 284,236 square feet in deliveries, and positive 211,606 square feet in net absorption, the vacancy rate held at 12.1%, the same rate reported in the previous The market had 4,678,454 square feet under construction at the end of the quarter, and rental rates stood at $21.78 per square foot. Augusta/Richmond County and positive 49,604 square feet of net absorption, Augusta/ Richmond County s vacancy rate went from 8.3% to 7.9% in the Rental rates went from $14.12 to $12.79 during that time. At the end of the quarter, there was 24,000 square feet underway for future delivery. Austin The Austin office market ended the quarter with a vacancy rate of 8.2%. The vacancy rate was up over the previous quarter, with net absorption totaling positive 238,403 square feet. Vacant sublease space decreased to 631,448 square feet. Rental rates ended the third quarter at $32.77, an increase over the previous A total of 13 buildings with 378,628 square feet of space delivered to the market, with 2,218,471 square feet still under construction at the end of the Bakersfield The Bakersfield office market ended the quarter with a vacancy rate of 5.9%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 76,531 square feet. Vacant sublease space decreased to 11,558 square feet. Rental rates ended the third quarter at $18.74, an increase over the previous A total of two buildings with 40,200 square feet of space delivered to the market, with 58,600 square feet still under construction at the end of the 2016 CoStar Group, Inc. The CoStar Office Report 3

National Third Quarter 2016 Overview Baltimore The Baltimore office market ended the quarter with a vacancy rate of 10.2%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 143,683 square feet. Vacant sublease space increased to 272,406 square feet. Rental rates ended the third quarter at $22.28, an increase over the previous A total of three buildings with 58,580 square feet of space delivered to the market, with 2,134,276 square feet still under construction at the end of the Baton Rouge The Baton Rouge office market saw vacancies fall and rental rates increase from the second quarter 2016 to the third quarter 2016. The overall vacancy rate currently sits at 11.1%, from 11.4% in the previous Rental rates ended the quarter at $16.80 per square foot, from $16.35 in the previous There was a total of 35,061 square feet that delivered in the quarter, with 242,992 square feet still under construction at the end of the Beaumont/Port Arthur The Beaumont/Port Arthur office market saw vacancies fall and rental rates increase from the second quarter 2016 to the third quarter 2016. The overall vacancy rate currently sits at 4.9%, from 5.0% in the previous Rental rates ended the quarter at $13.91 per square foot, from $13.77 in the previous There was a total of 12,825 square feet that delivered in the quarter, with 5,000 square feet still under construction at the end of the Birmingham The vacancy rate remained unchanged in Birmingham in the third With 12,000 square feet in deliveries, and negative (1,852) square feet in net absorption, the vacancy rate held at 11.3%, the same rate reported in the previous The market had 426,940 square feet under construction at the end of the quarter, and rental rates stood at $16.68 per square foot. Boise City/Nampa The Boise City/Nampa office market ended the quarter with a vacancy rate of 7.0%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 122,028 square feet. Vacant sublease space decreased to 43,830 square feet. Rental rates ended the third quarter at $16.29, an increase over the previous A total of two buildings with 9,221 square feet of space delivered to the market, with 693,680 square feet still under construction at the end of the Boston The Boston office market ended the quarter with a vacancy rate of 8.2%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 2,438,110 square feet. Vacant sublease space increased to 2,405,757 square feet. Rental rates ended the third quarter at $21.09, an increase over the previous A total of nine buildings with 1,479,994 square feet of space delivered to the market, with 5,091,348 square feet still under construction at the end of the Bremerton/Silverdale The Bremerton/Silverdale office market reported no new deliveries and no space under construction at the end of the third quarter 2016. With this limited construction activity, net absorption of positive 89,961 square feet caused the vacancy rate to decrease from 9.2% to 7.3% in the Rental rates stood at $17.38. Broward County The Broward County office market ended the quarter with a vacancy rate of 10.1%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 198,577 square feet. Vacant sublease space increased to 229,723 square feet. Rental rates ended the third quarter at $26.00, an increase over the previous A total of two buildings with 28,787 square feet of space delivered to the market, with 884,521 square feet still under construction at the end of the Brownsville/Harlingen With no space currently under construction, Brownsville/ Harlingen absorbed 20,924 square feet of space and delivered 8,000 square feet of space, resulting in a vacancy rate that went from 5.6% to 5.3% over the course of the Rental rates went from $15.30 to $16.14 per square foot. Buffalo/Niagara Falls The Buffalo/Niagara Falls office market saw vacancies fall and rental rates increase from the second quarter 2016 to the third quarter 2016. The overall vacancy rate currently sits at 7.9%, from 8.0% in the previous Rental rates ended the quarter at $15.94 per square foot, from $15.23 in the previous There was a total of 45,000 square feet that delivered in the quarter, with 64,000 square feet still under construction at the end of the Charleston WV and negative (2,802) square feet of net absorption, Charleston WV s vacancy rate went from 8.4% to 8.4% in the Rental rates went from $15.36 to $15.66 during that time. At the end of the quarter, there was 35,400 square feet underway for future delivery. 4 The CoStar Office Report 2016 CoStar Group, Inc.

Overview Third Quarter 2016 National Charleston/N Charleston The Charleston/N Charleston office market ended the quarter with a vacancy rate of 6.3%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 177,032 square feet. Vacant sublease space increased to 55,489 square feet. Rental rates ended the third quarter at $20.39, an increase over the previous A total of one building with 3,223 square feet of space delivered to the market, with 406,070 square feet still under construction at the end of the Charlotte The Charlotte office market ended the quarter with a vacancy rate of 8.3%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 109,348 square feet. Vacant sublease space increased to 416,070 square feet. Rental rates ended the third quarter at $22.70, an increase over the previous A total of 10 buildings with 394,604 square feet of space delivered to the market, with 3,138,137 square feet still under construction at the end of the Chattanooga and positive 187,777 square feet of net absorption, Chattanooga s vacancy rate went from 8.3% to 7.2% in the Rental rates went from $16.01 to $16.53 during that time. At the end of the quarter, there was 40,000 square feet underway for future delivery. Chicago The Chicago office market ended the quarter with a vacancy rate of 13.3%. The vacancy rate was up over the previous quarter, with net absorption totaling positive 375,023 square feet. Vacant sublease space decreased to 3,075,577 square feet. Rental rates ended the third quarter at $23.35, an increase over the previous A total of eight buildings with 1,001,184 square feet of space delivered to the market, with 6,444,176 square feet still under construction at the end of the Cincinnati The Cincinnati office market ended the quarter with a vacancy rate of 10.1%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 488,762 square feet. Vacant sublease space increased to 71,193 square feet. Rental rates ended the third quarter at $16.08, an increase over the previous A total of three buildings with 59,755 square feet of space delivered to the market, with 524,874 square feet still under construction at the end of the Cleveland The Cleveland office market ended the quarter with a vacancy rate of 11.5%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 734,544 square feet. Vacant sublease space increased to 166,630 square feet. Rental rates ended the third quarter at $17.18, an increase over the previous A total of three buildings with 688,700 square feet of space delivered to the market, with 601,111 square feet still under construction at the end of the Colorado Springs and negative (39,726) square feet of net absorption, Colorado Springs s vacancy rate went from 11.0% to 11.2% in the Rental rates went from $16.38 to $16.41 during that time. At the end of the quarter, there was 22,640 square feet underway for future delivery. Columbia The Columbia office market saw vacancies rise and rental rates increase from the second quarter 2016 to the third quarter 2016. The overall vacancy rate currently sits at 7.0%, from 6.7% in the previous Rental rates ended the quarter at $15.75 per square foot, from $15.30 in the previous There was a total of 12,390 square feet that delivered in the quarter, with 101,370 square feet still under construction at the end of the Columbus The Columbus office market ended the quarter with a vacancy rate of 7.3%. The vacancy rate was up over the previous quarter, with net absorption totaling negative (88,008) square feet. Vacant sublease space increased to 232,944 square feet. Rental rates ended the third quarter at $17.27, an increase over the previous A total of seven buildings with 127,573 square feet of space delivered to the market, with 1,524,555 square feet still under construction at the end of the Columbus GA The vacancy rate remained unchanged in Columbus GA in the third With 37,100 square feet in deliveries, and positive 33,708 square feet in net absorption, the vacancy rate held at 6.5%, the same rate reported in the previous The market had 11,480 square feet under construction at the end of the quarter, and rental rates stood at $13.01 per square foot. Corpus Christi The vacancy rate remained unchanged in Corpus Christi in the third With 68,184 square feet in deliveries, and 2016 CoStar Group, Inc. The CoStar Office Report 5

National Third Quarter 2016 Overview positive 61,176 square feet in net absorption, the vacancy rate held at 8.1%, the same rate reported in the previous The market had 151,000 square feet under construction at the end of the quarter, and rental rates stood at $15.94 per square foot. Dallas/Ft Worth The Dallas/Ft Worth office market ended the quarter with a vacancy rate of 14.3%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 2,008,183 square feet. Vacant sublease space increased to 2,046,805 square feet. Rental rates ended the third quarter at $24.08, an increase over the previous A total of 62 buildings with 1,729,349 square feet of space delivered to the market, with 11,802,715 square feet still under construction at the end of the Davenport/Moline/Rock Island and positive 118,099 square feet of net absorption, Davenport/ Moline/Rock Island s vacancy rate went from 8.9% to 7.4% in the Rental rates went from $11.49 to $11.23 during that time. At the end of the quarter, there was 42,000 square feet underway for future delivery. Dayton The Dayton office market reported no new deliveries and no space under construction at the end of the third quarter 2016. With this limited construction activity, net absorption of positive 150,199 square feet caused the vacancy rate to decrease from 14.0% to 13.6% in the Rental rates stood at $14.48. Deltona/Daytona Beach The vacancy rate remained unchanged in Deltona/ Daytona Beach in the third With 8,074 square feet in deliveries, and positive 11,505 square feet in net absorption, the vacancy rate held at 6.4%, the same rate reported in the previous The market had 76,000 square feet under construction at the end of the quarter, and rental rates stood at $11.74 per square foot. Denver The Denver office market ended the quarter with a vacancy rate of 9.6%. The vacancy rate was up over the previous quarter, with net absorption totaling negative (29,698) square feet. Vacant sublease space increased to 1,369,217 square feet. Rental rates ended the third quarter at $24.94, a decrease over the previous A total of 13 buildings with 511,562 square feet of space delivered to the market, with 5,180,281 square feet still under construction at the end of the Des Moines The Des Moines office market saw vacancies fall and rental rates decrease from the second quarter 2016 to the third quarter 2016. The overall vacancy rate currently sits at 4.6%, from 5.2% in the previous Rental rates ended the quarter at $13.30 per square foot, from $13.61 in the previous There was a total of 15,000 square feet that delivered in the quarter, with 453,883 square feet still under construction at the end of the Detroit The Detroit office market ended the quarter with a vacancy rate of 12.5%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 1,255,394 square feet. Vacant sublease space increased to 247,818 square feet. Rental rates ended the third quarter at $18.80, an increase over the previous A total of nine buildings with 246,673 square feet of space delivered to the market, with 1,021,357 square feet still under construction at the end of the Duluth The Duluth office market reported no new deliveries and no space under construction at the end of the third quarter 2016. With this limited construction activity, net absorption of positive 27,257 square feet caused the vacancy rate to decrease from 3.0% to 2.6% in the Rental rates stood at $13.60. East Bay/Oakland and negative (47,004) square feet of net absorption, East Bay/Oakland s vacancy rate went from 7.9% to 8.0% in the Rental rates went from $28.51 to $28.89 during that time. At the end of the quarter, there was 487,700 square feet underway for future delivery. El Paso and positive 26,903 square feet of net absorption, El Paso s vacancy rate went from 7.2% to 7.1% in the Rental rates went from $15.28 to $16.03 during that time. At the end of the quarter, there was 232,502 square feet underway for future delivery. Erie The Erie office market reported no new deliveries and no space under construction at the end of the third quarter 2016. With this limited construction activity, net absorption of negative (13,311) square feet caused the vacancy rate to increase from 3.8% to 3.9% in the Rental rates stood at $9.99. 6 The CoStar Office Report 2016 CoStar Group, Inc.

Overview Third Quarter 2016 National Evansville and positive 78,162 square feet of net absorption, Evansville s vacancy rate went from 7.0% to 6.3% in the Rental rates went from $11.11 to $11.33 during that time. At the end of the quarter, there was 82,500 square feet underway for future delivery. Fayetteville and positive 27,024 square feet of net absorption, Fayetteville s vacancy rate went from 7.8% to 7.4% in the Rental rates went from $15.12 to $14.65 during that time. At the end of the quarter, there was 27,568 square feet underway for future delivery. Fayetteville/Springdale/Rogers The Fayetteville/Springdale/Rogers office market ended the quarter with a vacancy rate of 6.2%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 231,595 square feet. Vacant sublease space decreased to 15,612 square feet. Rental rates ended the third quarter at $17.24, a decrease over the previous A total of three buildings with 117,876 square feet of space delivered to the market, with 253,500 square feet still under construction at the end of the Fort Smith The Fort Smith office market reported no new deliveries and no space under construction at the end of the third quarter 2016. With this limited construction activity, net absorption of positive 41,006 square feet caused the vacancy rate to decrease from 3.4% to 2.5% in the Rental rates stood at $10.77. Fort Wayne With no space currently under construction, Fort Wayne absorbed 167,132 square feet of space and delivered 14,142 square feet of space, resulting in a vacancy rate that went from 7.6% to 6.7% over the course of the Rental rates went from $13.40 to $13.65 per square foot. Fresno and positive 155,229 square feet of net absorption, Fresno s vacancy rate went from 9.5% to 9.0% in the Rental rates went from $16.93 to $16.77 during that time. At the end of the quarter, there was 20,776 square feet underway for future delivery. Green Bay and positive 219,345 square feet of net absorption, Green Bay s vacancy rate went from 9.4% to 8.0% in the Rental rates went from $11.91 to $12.43 during that time. At the end of the quarter, there was 5,000 square feet underway for future delivery. Greensboro/Winston-Salem The Greensboro/Winston-Salem office market ended the quarter with a vacancy rate of 9.3%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 384,686 square feet. Vacant sublease space decreased to 126,684 square feet. Rental rates ended the third quarter at $14.82, an increase over the previous A total of one building with 11,183 square feet of space delivered to the market, with 54,579 square feet still under construction at the end of the Greenville/Spartanburg The Greenville/Spartanburg office market ended the quarter with a vacancy rate of 7.4%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 108,727 square feet. Vacant sublease space increased to 183,047 square feet. Rental rates ended the third quarter at $16.02, an increase over the previous A total of three buildings with 23,238 square feet of space delivered to the market, with 376,074 square feet still under construction at the end of the Hampton Roads The Hampton Roads office market ended the quarter with a vacancy rate of 11.1%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 248,146 square feet. Vacant sublease space increased to 127,682 square feet. Rental rates ended the third quarter at $17.03, an increase over the previous A total of three buildings with 90,000 square feet of space delivered to the market, with 250,080 square feet still under construction at the end of the Hartford and positive 51,252 square feet of net absorption, Hartford s vacancy rate went from 8.6% to 8.5% in the Rental rates went from $18.96 to $18.83 during that time. At the end of the quarter, there was 125,050 square feet underway for future delivery. Hawaii The Hawaii office market ended the quarter with a vacancy rate of 4.7%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 105,286 square feet. Vacant sublease space increased to 49,052 square feet. Rental rates ended the third quarter at $27.46, an increase over the previous A total of two buildings with 11,130 square feet of space delivered to the market, with 89,419 square feet still under construction at the end of the 2016 CoStar Group, Inc. The CoStar Office Report 7

National Third Quarter 2016 Overview Houston The Houston office market ended the quarter with a vacancy rate of 14.7%. The vacancy rate was up over the previous quarter, with net absorption totaling negative (150,927) square feet. Vacant sublease space increased to 4,909,764 square feet. Rental rates ended the third quarter at $27.69, a decrease over the previous A total of 19 buildings with 1,696,155 square feet of space delivered to the market, with 3,917,542 square feet still under construction at the end of the Huntington/Ashland and positive 92,008 square feet of net absorption, Huntington/ Ashland s vacancy rate went from 6.3% to 5.3% in the Rental rates went from $11.93 to $11.06 during that time. At the end of the quarter, there was 20,000 square feet underway for future delivery. Huntsville and positive 318,827 square feet of net absorption, Huntsville s vacancy rate went from 11.5% to 10.0% in the Rental rates went from $13.17 to $13.54 during that time. At the end of the quarter, there was 6,000 square feet underway for future delivery. Indianapolis The Indianapolis office market ended the quarter with a vacancy rate of 7.3%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 377,156 square feet. Vacant sublease space increased to 316,897 square feet. Rental rates ended the third quarter at $17.22, an increase over the previous A total of three buildings with 144,720 square feet of space delivered to the market, with 772,500 square feet still under construction at the end of the Inland Empire (California) The Inland Empire (California) office market saw vacancies fall and rental rates decrease from the second quarter 2016 to the third quarter 2016. The overall vacancy rate currently sits at 9.6%, from 10.0% in the previous Rental rates ended the quarter at $19.90 per square foot, from $19.91 in the previous There was a total of 65,847 square feet that delivered in the quarter, with 432,702 square feet still under construction at the end of the Jackson The Jackson office market ended the quarter with a vacancy rate of 6.1%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 125,401 square feet. Vacant sublease space decreased to 25,332 square feet. Rental rates ended the third quarter at $16.00, an increase over the previous A total of two buildings with 16,686 square feet of space delivered to the market, with 47,475 square feet still under construction at the end of the Jacksonville (Florida) The Jacksonville (Florida) office market ended the quarter with a vacancy rate of 9.8%. The vacancy rate was up over the previous quarter, with net absorption totaling negative (61,166) square feet. Vacant sublease space increased to 198,751 square feet. Rental rates ended the third quarter at $18.50, an increase over the previous A total of four buildings with 84,361 square feet of space delivered to the market, with 98,752 square feet still under construction at the end of the Kansas City The Kansas City office market ended the quarter with a vacancy rate of 9.3%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 555,966 square feet. Vacant sublease space increased to 481,633 square feet. Rental rates ended the third quarter at $18.07, an increase over the previous A total of one building with 90,000 square feet of space delivered to the market, with 1,982,529 square feet still under construction at the end of the Killeen/Temple/Fort Hood With no space currently under construction, Killeen/ Temple/Fort Hood absorbed (7,395) square feet of space and delivered 4,570 square feet of space, resulting in a vacancy rate that went from 8.1% to 8.5% over the course of the Rental rates went from $12.54 to $10.86 per square foot. Kingsport/Bristol/Bristol and positive 54,965 square feet of net absorption, Kingsport/ Bristol/Bristol s vacancy rate went from 7.6% to 6.8% in the Rental rates went from $11.95 to $12.41 during that time. At the end of the quarter, there was 30,000 square feet underway for future delivery. Knoxville The Knoxville office market ended the quarter with a vacancy rate of 6.5%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 377,514 square feet. Vacant sublease space decreased to 82,119 square feet. Rental rates ended the third quarter at $14.99, an increase over the previous A total of two buildings with 258,000 square feet of space delivered to the market, with 142,740 square feet still under construction at the end of the 8 The CoStar Office Report 2016 CoStar Group, Inc.

Overview Third Quarter 2016 National Lafayette and positive 54,913 square feet of net absorption, Lafayette s vacancy rate went from 5.9% to 5.2% in the Rental rates went from $15.07 to $15.11 during that time. At the end of the quarter, there was 50,000 square feet underway for future delivery. Las Vegas The Las Vegas office market ended the quarter with a vacancy rate of 15.5%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 94,548 square feet. Vacant sublease space increased to 394,791 square feet. Rental rates ended the third quarter at $19.65, a decrease over the previous A total of three buildings with 20,920 square feet of space delivered to the market, with 616,697 square feet still under construction at the end of the Lexington/Fayette The Lexington/Fayette office market ended the quarter with a vacancy rate of 8.7%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 192,928 square feet. Vacant sublease space decreased to 51,080 square feet. Rental rates ended the third quarter at $15.97, an increase over the previous A total of one building with 67,617 square feet of space delivered to the market, with 61,150 square feet still under construction at the end of the Lincoln The Lincoln office market ended the quarter with a vacancy rate of 3.6%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 110,913 square feet. Vacant sublease space decreased to 7,524 square feet. Rental rates ended the third quarter at $13.27, a decrease over the previous A total of one building with 12,750 square feet of space delivered to the market, with 55,000 square feet still under construction at the end of the Little Rock/N Little Rock The Little Rock/N Little Rock office market ended the quarter with a vacancy rate of 4.7%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 103,403 square feet. Vacant sublease space stayed the same at 38,097 square feet. Rental rates ended the third quarter at $15.15, an increase over the previous A total of one building with 8,000 square feet of space delivered to the market, with 125,872 square feet still under construction at the end of the Long Island (New York) The Long Island (New York) office market saw vacancies fall and rental rates increase from the second quarter 2016 to the third quarter 2016. The overall vacancy rate currently sits at 7.1%, from 7.3% in the previous Rental rates ended the quarter at $28.56 per square foot, from $27.30 in the previous There was a total of 66,828 square feet that delivered in the quarter, with 3,224,387 square feet still under construction at the end of the Los Angeles The Los Angeles office market ended the quarter with a vacancy rate of 10.6%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 1,337,135 square feet. Vacant sublease space decreased to 1,316,303 square feet. Rental rates ended the third quarter at $32.77, an increase over the previous A total of 10 buildings with 1,094,964 square feet of space delivered to the market, with 3,595,692 square feet still under construction at the end of the Louisville The Louisville office market saw vacancies rise and rental rates increase from the second quarter 2016 to the third quarter 2016. The overall vacancy rate currently sits at 8.8%, from 8.3% in the previous Rental rates ended the quarter at $16.38 per square foot, from $16.28 in the previous There was a total of 45,000 square feet that delivered in the quarter, with 239,115 square feet still under construction at the end of the Lubbock The Lubbock office market ended the quarter with a vacancy rate of 7.1%. The vacancy rate was up over the previous quarter, with net absorption totaling negative (41,930) square feet. Vacant sublease space increased to 11,694 square feet. Rental rates ended the third quarter at $14.11, a decrease over the previous A total of four buildings with 16,150 square feet of space delivered to the market, with 54,795 square feet still under construction at the end of the Madison The Madison office market saw vacancies fall and rental rates decrease from the second quarter 2016 to the third quarter 2016. The overall vacancy rate currently sits at 5.6%, from 6.5% in the previous Rental rates ended the quarter at $15.06 per square foot, from $15.11 in the previous There was a total of 258,000 square feet that delivered in the quarter, with 183,250 square feet still under construction at the end of the McAllen/Edinburg/Pharr and negative (35,911) square feet of net absorption, McAllen/ Edinburg/Pharr s vacancy rate went from 5.6% to 5.9% in the Rental rates went from $15.32 to $15.27 during that time. At the end of the quarter, there was 66,538 square feet underway for future delivery. 2016 CoStar Group, Inc. The CoStar Office Report 9

National Third Quarter 2016 Overview Memphis The vacancy rate remained unchanged in Memphis in the third With 51,886 square feet in deliveries, and positive 92,905 square feet in net absorption, the vacancy rate held at 10.4%, the same rate reported in the previous The market had 1,375,000 square feet under construction at the end of the quarter, and rental rates stood at $16.60 per square foot. Miami-Dade County The Miami-Dade County office market ended the quarter with a vacancy rate of 9.9%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 318,948 square feet. Vacant sublease space increased to 247,771 square feet. Rental rates ended the third quarter at $32.78, an increase over the previous A total of one building with 18,000 square feet of space delivered to the market, with 1,685,607 square feet still under construction at the end of the Milwaukee The Milwaukee office market ended the quarter with a vacancy rate of 8.1%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 650,567 square feet. Vacant sublease space decreased to 136,962 square feet. Rental rates ended the third quarter at $16.41, an increase over the previous A total of two buildings with 54,000 square feet of space delivered to the market, with 1,789,500 square feet still under construction at the end of the Minneapolis The Minneapolis office market ended the quarter with a vacancy rate of 7.5%. The vacancy rate was up over the previous quarter, with net absorption totaling negative (611,418) square feet. Vacant sublease space decreased to 424,908 square feet. Rental rates ended the third quarter at $19.22, an increase over the previous A total of three buildings with 43,290 square feet of space delivered to the market, with 793,574 square feet still under construction at the end of the Mobile The Mobile office market ended the quarter with a vacancy rate of 6.3%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 45,891 square feet. Vacant sublease space increased to 52,461 square feet. Rental rates ended the third quarter at $13.00, an increase over the previous A total of one building with 5,000 square feet of space delivered to the market, with 158,667 square feet still under construction at the end of the Montgomery and positive 40,902 square feet of net absorption, Montgomery s vacancy rate went from 7.0% to 6.7% in the Rental rates went from $13.63 to $13.61 during that time. At the end of the quarter, there was 12,006 square feet underway for future delivery. Myrtle Beach/Conway The Myrtle Beach/Conway office market ended the quarter with a vacancy rate of 3.3%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 10,422 square feet. Vacant sublease space stayed the same at 0 square feet. Rental rates ended the third quarter at $14.36, an increase over the previous A total of one building with 4,000 square feet of space delivered to the market, with 8,330 square feet still under construction at the end of the Nashville The Nashville office market ended the quarter with a vacancy rate of 4.3%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 553,162 square feet. Vacant sublease space increased to 196,166 square feet. Rental rates ended the third quarter at $24.49, an increase over the previous A total of five buildings with 363,325 square feet of space delivered to the market, with 3,297,924 square feet still under construction at the end of the New Orleans/Metairie/Kenner The New Orleans/Metairie/Kenner office market ended the quarter with a vacancy rate of 7.9%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 485,095 square feet. Vacant sublease space decreased to 105,507 square feet. Rental rates ended the third quarter at $17.04, an increase over the previous A total of six buildings with 144,852 square feet of space delivered to the market, with 79,900 square feet still under construction at the end of the New York City The New York City office market ended the quarter with a vacancy rate of 8.2%. The vacancy rate was up over the previous quarter, with net absorption totaling negative (606,701) square feet. Vacant sublease space increased to 3,770,474 square feet. Rental rates ended the third quarter at $65.11, an increase over the previous A total of two buildings with 126,643 square feet of space delivered to the market, with 13,507,005 square feet still under construction at the end of the North Bay/Santa Rosa The North Bay/Santa Rosa office market saw vacancies fall and rental rates increase from the second quarter 2016 to the third quarter 2016. The overall vacancy rate currently 10 The CoStar Office Report 2016 CoStar Group, Inc.

Overview Third Quarter 2016 National sits at 9.4%, from 10.7% in the previous Rental rates ended the quarter at $25.03 per square foot, from $24.98 in the previous There was a total of 9,600 square feet that delivered in the quarter, with 14,000 square feet still under construction at the end of the Northern New Jersey The Northern New Jersey office market saw vacancies fall and rental rates decrease from the second quarter 2016 to the third quarter 2016. The overall vacancy rate currently sits at 13.6%, from 14.1% in the previous Rental rates ended the quarter at $24.73 per square foot, from $24.75 in the previous There was a total of 959,240 square feet that delivered in the quarter, with 1,356,664 square feet still under construction at the end of the Ocala and positive 23,716 square feet of net absorption, Ocala s vacancy rate went from 8.4% to 7.9% in the Rental rates went from $12.67 to $12.63 during that time. At the end of the quarter, there was 6,277 square feet underway for future delivery. Oklahoma City The Oklahoma City office market ended the quarter with a vacancy rate of 7.7%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 365,300 square feet. Vacant sublease space increased to 49,098 square feet. Rental rates ended the third quarter at $16.03, an increase over the previous A total of 19 buildings with 216,068 square feet of space delivered to the market, with 1,411,785 square feet still under construction at the end of the Olympia The Olympia office market reported no new deliveries and no space under construction at the end of the third quarter 2016. With this limited construction activity, net absorption of positive 64,398 square feet caused the vacancy rate to decrease from 7.6% to 6.9% in the Rental rates stood at $16.62. Omaha/Council Bluffs The Omaha/Council Bluffs office market ended the quarter with a vacancy rate of 5.4%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 449,828 square feet. Vacant sublease space decreased to 40,075 square feet. Rental rates ended the third quarter at $17.28, an increase over the previous A total of four buildings with 164,014 square feet of space delivered to the market, with 233,459 square feet still under construction at the end of the Orange County (California) The Orange County (California) office market ended the quarter with a vacancy rate of 8.9%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 626,900 square feet. Vacant sublease space decreased to 460,206 square feet. Rental rates ended the third quarter at $27.73, an increase over the previous A total of one building with 5,000 square feet of space delivered to the market, with 2,430,157 square feet still under construction at the end of the Orlando The Orlando office market ended the quarter with a vacancy rate of 8.9%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 613,708 square feet. Vacant sublease space increased to 170,747 square feet. Rental rates ended the third quarter at $19.44, an increase over the previous A total of six buildings with 142,990 square feet of space delivered to the market, with 537,120 square feet still under construction at the end of the Palm Beach County The Palm Beach County office market ended the quarter with a vacancy rate of 11.5%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 483,362 square feet. Vacant sublease space decreased to 115,819 square feet. Rental rates ended the third quarter at $27.82, an increase over the previous A total of three buildings with 39,224 square feet of space delivered to the market, with 67,329 square feet still under construction at the end of the Pensacola and positive 76,277 square feet of net absorption, Pensacola s vacancy rate went from 5.8% to 5.3% in the Rental rates went from $15.10 to $15.09 during that time. At the end of the quarter, there was 193,056 square feet underway for future delivery. Peoria The Peoria office market reported no new deliveries and no space under construction at the end of the third quarter 2016. With this limited construction activity, net absorption of positive 20,368 square feet caused the vacancy rate to decrease from 5.7% to 5.5% in the Rental rates stood at $12.17. Philadelphia The Philadelphia office market ended the quarter with a vacancy rate of 9.1%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 1,235,664 square feet. Vacant sublease space increased to 898,377 2016 CoStar Group, Inc. The CoStar Office Report 11

National Third Quarter 2016 Overview square feet. Rental rates ended the third quarter at $22.33, an increase over the previous A total of five buildings with 702,890 square feet of space delivered to the market, with 3,350,498 square feet still under construction at the end of the Phoenix The Phoenix office market ended the quarter with a vacancy rate of 15.4%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 1,053,043 square feet. Vacant sublease space increased to 1,056,554 square feet. Rental rates ended the third quarter at $23.10, an increase over the previous A total of seven buildings with 483,692 square feet of space delivered to the market, with 2,047,897 square feet still under construction at the end of the Pittsburgh The Pittsburgh office market ended the quarter with a vacancy rate of 7.7%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 403,895 square feet. Vacant sublease space increased to 392,407 square feet. Rental rates ended the third quarter at $20.51, an increase over the previous A total of five buildings with 152,686 square feet of space delivered to the market, with 411,643 square feet still under construction at the end of the Port St Lucie/Fort Pierce The Port St Lucie/Fort Pierce office market saw vacancies fall and rental rates decrease from the second quarter 2016 to the third quarter 2016. The overall vacancy rate currently sits at 8.9%, from 10.1% in the previous Rental rates ended the quarter at $15.72 per square foot, from $16.09 in the previous There was a total of 10,267 square feet that delivered in the quarter, with 60,000 square feet still under construction at the end of the Portland The Portland office market ended the quarter with a vacancy rate of 7.3%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 378,641 square feet. Vacant sublease space increased to 286,939 square feet. Rental rates ended the third quarter at $23.49, a decrease over the previous A total of one building with 117,500 square feet of space delivered to the market, with 1,545,056 square feet still under construction at the end of the Portland/South Portland With no space currently under construction, Portland/ South Portland absorbed (58,990) square feet of space and delivered 24,851 square feet of space, resulting in a vacancy rate that went from 5.1% to 5.5% over the course of the Rental rates went from $14.52 to $14.46 per square foot. Providence The Providence office market saw vacancies fall and rental rates increase from the second quarter 2016 to the third quarter 2016. The overall vacancy rate currently sits at 6.9%, from 7.1% in the previous Rental rates ended the quarter at $16.98 per square foot, from $16.39 in the previous There was a total of 92,000 square feet that delivered in the quarter, with 187,437 square feet still under construction at the end of the Raleigh/Durham The Raleigh/Durham office market ended the quarter with a vacancy rate of 6.7%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 502,617 square feet. Vacant sublease space decreased to 452,619 square feet. Rental rates ended the third quarter at $20.85, an increase over the previous A total of three buildings with 44,800 square feet of space delivered to the market, with 2,603,002 square feet still under construction at the end of the Reno/Sparks The vacancy rate remained unchanged in Reno/Sparks in the third With 5,000 square feet in deliveries, and negative (6,140) square feet in net absorption, the vacancy rate held at 11.2%, the same rate reported in the previous The market had 16,975 square feet under construction at the end of the quarter, and rental rates stood at $17.57 per square foot. Richmond VA and positive 67,376 square feet of net absorption, Richmond VA s vacancy rate went from 9.2% to 8.5% in the Rental rates went from $17.75 to $17.69 during that time. At the end of the quarter, there was 547,534 square feet underway for future delivery. Roanoke and positive 29,208 square feet of net absorption, Roanoke s vacancy rate went from 11.2% to 11.0% in the Rental rates went from $14.38 to $14.19 during that time. At the end of the quarter, there was 16,800 square feet underway for future delivery. Rochester The Rochester office market saw vacancies fall and rental rates increase from the second quarter 2016 to the third quarter 2016. The overall vacancy rate currently sits at 8.2%, from 8.4% in the previous Rental rates ended the quarter at $13.16 per square foot, from $13.07 in the previous There was a total of 24,000 square feet that delivered in the quarter, with 233,000 square feet still under construction at the end of the 12 The CoStar Office Report 2016 CoStar Group, Inc.

Overview Third Quarter 2016 National Sacramento The Sacramento office market ended the quarter with a vacancy rate of 11.7%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 489,648 square feet. Vacant sublease space increased to 233,031 square feet. Rental rates ended the third quarter at $21.07, an increase over the previous A total of one building with 30,800 square feet of space delivered to the market, with 307,460 square feet still under construction at the end of the Salinas and positive 117,375 square feet of net absorption, Salinas s vacancy rate went from 9.5% to 8.1% in the Rental rates went from $21.16 to $20.82 during that time. At the end of the quarter, there was 141,226 square feet underway for future delivery. Salt Lake City The Salt Lake City office market ended the quarter with a vacancy rate of 6.1%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 2,038,541 square feet. Vacant sublease space increased to 695,566 square feet. Rental rates ended the third quarter at $19.57, a decrease over the previous A total of 19 buildings with 1,626,996 square feet of space delivered to the market, with 1,753,116 square feet still under construction at the end of the San Antonio The San Antonio office market ended the quarter with a vacancy rate of 10.0%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 211,109 square feet. Vacant sublease space increased to 135,029 square feet. Rental rates ended the third quarter at $20.45, an increase over the previous A total of eight buildings with 166,312 square feet of space delivered to the market, with 981,047 square feet still under construction at the end of the San Diego and positive 540,655 square feet of net absorption, San Diego s vacancy rate went from 11.1% to 10.7% in the Rental rates went from $29.61 to $30.50 during that time. At the end of the quarter, there was 365,867 square feet underway for future delivery. San Francisco The San Francisco office market ended the quarter with a vacancy rate of 6.9%. The vacancy rate was up over the previous quarter, with net absorption totaling positive 128,164 square feet. Vacant sublease space increased to 1,627,115 square feet. Rental rates ended the third quarter at $55.28, an increase over the previous A total of three buildings with 320,191 square feet of space delivered to the market, with 5,190,787 square feet still under construction at the end of the San Luis Obispo/Paso Robles and positive 25,814 square feet of net absorption, San Luis Obispo/Paso Robles s vacancy rate went from 2.2% to 1.7% in the Rental rates went from $18.70 to $19.06 during that time. At the end of the quarter, there was 75,369 square feet underway for future delivery. Santa Barbara/Sta Maria/Goleta The Santa Barbara/Sta Maria/Goleta office market reported no new deliveries and no space under construction at the end of the third quarter 2016. With this limited construction activity, net absorption of positive 10,588 square feet caused the vacancy rate to decrease from 3.0% to 2.9% in the Rental rates stood at $20.25. Santa Cruz/Watsonville The Santa Cruz/Watsonville office market reported no new deliveries and no space under construction at the end of the third quarter 2016. With this limited construction activity, net absorption of positive 31,623 square feet caused the vacancy rate to decrease from 7.3% to 6.9% in the Rental rates stood at $21.25. Savannah The Savannah office market ended the quarter with a vacancy rate of 5.1%. The vacancy rate was up over the previous quarter, with net absorption totaling negative (18,670) square feet. Vacant sublease space decreased to 7,462 square feet. Rental rates ended the third quarter at $16.86, an increase over the previous A total of two buildings with 14,762 square feet of space delivered to the market, with 30,000 square feet still under construction at the end of the Seattle/Puget Sound The Seattle/Puget Sound office market ended the quarter with a vacancy rate of 6.8%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 1,581,481 square feet. Vacant sublease space increased to 652,370 square feet. Rental rates ended the third quarter at $30.96, an increase over the previous A total of five buildings with 475,008 square feet of space delivered to the market, with 7,972,967 square feet still under construction at the end of the 2016 CoStar Group, Inc. The CoStar Office Report 13

National Third Quarter 2016 Overview Shreveport/Bossier City The Shreveport/Bossier City office market saw vacancies fall and rental rates increase from the second quarter 2016 to the third quarter 2016. The overall vacancy rate currently sits at 11.7%, from 12.5% in the previous Rental rates ended the quarter at $12.34 per square foot, from $12.31 in the previous There was a total of 116,000 square feet that delivered in the quarter, with 57,500 square feet still under construction at the end of the South Bay/San Jose The South Bay/San Jose office market ended the quarter with a vacancy rate of 8.0%. The vacancy rate was up over the previous quarter, with net absorption totaling negative (170,170) square feet. Vacant sublease space increased to 1,161,928 square feet. Rental rates ended the third quarter at $39.97, an increase over the previous A total of four buildings with 549,465 square feet of space delivered to the market, with 10,090,399 square feet still under construction at the end of the South Bend/Mishawaka The South Bend/Mishawaka office market reported no new deliveries and no space under construction at the end of the third quarter 2016. With this limited construction activity, net absorption of positive 65,061 square feet caused the vacancy rate to decrease from 6.4% to 5.7% in the Rental rates stood at $14.35. Southwest Florida The Southwest Florida office market saw vacancies fall and rental rates decrease from the second quarter 2016 to the third quarter 2016. The overall vacancy rate currently sits at 8.7%, from 9.3% in the previous Rental rates ended the quarter at $16.17 per square foot, from $16.30 in the previous There was a total of 70,189 square feet that delivered in the quarter, with 67,000 square feet still under construction at the end of the Spokane With no space currently under construction, Spokane absorbed (12,300) square feet of space and delivered 91,000 square feet of space, resulting in a vacancy rate that went from 8.6% to 9.0% over the course of the Rental rates went from $15.03 to $15.14 per square foot. Springfield With no space currently under construction, Springfield absorbed 67,110 square feet of space and delivered 14,000 square feet of space, resulting in a vacancy rate that went from 7.0% to 6.4% over the course of the Rental rates went from $13.11 to $13.47 per square foot. St. Louis The St. Louis office market ended the quarter with a vacancy rate of 9.4%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 234,352 square feet. Vacant sublease space decreased to 291,344 square feet. Rental rates ended the third quarter at $18.06, a decrease over the previous A total of one building with 60,000 square feet of space delivered to the market, with 1,207,658 square feet still under construction at the end of the Stockton/Modesto and positive 46,204 square feet of net absorption, Stockton/ Modesto s vacancy rate went from 8.1% to 7.8% in the Rental rates went from $14.84 to $14.59 during that time. At the end of the quarter, there was 306,000 square feet underway for future delivery. Syracuse The Syracuse office market saw vacancies fall and rental rates decrease from the second quarter 2016 to the third quarter 2016. The overall vacancy rate currently sits at 8.2%, from 8.5% in the previous Rental rates ended the quarter at $14.30 per square foot, from $14.39 in the previous There was a total of 90,565 square feet that delivered in the quarter, with 24,000 square feet still under construction at the end of the Tallahassee The Tallahassee office market ended the quarter with a vacancy rate of 6.8%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 98,875 square feet. Vacant sublease space decreased to 44,739 square feet. Rental rates ended the third quarter at $15.77, an increase over the previous A total of two buildings with 10,546 square feet of space delivered to the market, with 80,695 square feet still under construction at the end of the Tampa/St Petersburg The Tampa/St Petersburg office market ended the quarter with a vacancy rate of 8.5%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 399,494 square feet. Vacant sublease space decreased to 348,157 square feet. Rental rates ended the third quarter at $20.07, an increase over the previous A total of five buildings with 22,875 square feet of space delivered to the market, with 181,576 square feet still under construction at the end of the Toledo The Toledo office market ended the quarter with a 14 The CoStar Office Report 2016 CoStar Group, Inc.

Overview Third Quarter 2016 National vacancy rate of 8.2%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 266,817 square feet. Vacant sublease space increased to 16,300 square feet. Rental rates ended the third quarter at $13.39, an increase over the previous A total of three buildings with 158,327 square feet of space delivered to the market, with 220,400 square feet still under construction at the end of the Tucson and positive 74,085 square feet of net absorption, Tucson s vacancy rate went from 11.8% to 11.5% in the Rental rates went from $18.62 to $18.68 during that time. At the end of the quarter, there was 33,271 square feet underway for future delivery. Tulsa The Tulsa office market ended the quarter with a vacancy rate of 10.0%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 226,223 square feet. Vacant sublease space increased to 74,549 square feet. Rental rates ended the third quarter at $14.74, an increase over the previous A total of four buildings with 38,257 square feet of space delivered to the market, with 310,332 square feet still under construction at the end of the Utica/Rome The Utica/Rome office market reported no new deliveries and no space under construction at the end of the third quarter 2016. With this limited construction activity, net absorption of positive 25,081 square feet caused the vacancy rate to decrease from 4.7% to 4.4% in the Rental rates stood at $10.61. Visalia/Porterville and positive 45,641 square feet of net absorption, Visalia/ Porterville s vacancy rate went from 6.4% to 5.7% in the Rental rates went from $15.05 to $14.37 during that time. At the end of the quarter, there was 6,144 square feet underway for future delivery. Washington The Washington office market ended the quarter with a vacancy rate of 15.1%. The vacancy rate was up over the previous quarter, with net absorption totaling negative (181,711) square feet. Vacant sublease space increased to 3,114,872 square feet. Rental rates ended the third quarter at $35.19, an increase over the previous A total of two buildings with 496,913 square feet of space delivered to the market, with 10,672,155 square feet still under construction at the end of the West Michigan The West Michigan office market saw vacancies fall and rental rates decrease from the second quarter 2016 to the third quarter 2016. The overall vacancy rate currently sits at 7.2%, from 7.5% in the previous Rental rates ended the quarter at $12.83 per square foot, from $12.98 in the previous There was a total of 88,995 square feet that delivered in the quarter, with 690,968 square feet still under construction at the end of the Westchester/So Connecticut The Westchester/So Connecticut office market saw vacancies fall and rental rates increase from the second quarter 2016 to the third quarter 2016. The overall vacancy rate currently sits at 12.0%, from 12.4% in the previous Rental rates ended the quarter at $28.12 per square foot, from $28.09 in the previous There was a total of 75,127 square feet that delivered in the quarter, with 186,510 square feet still under construction at the end of the Wichita and positive 113,595 square feet of net absorption, Wichita s vacancy rate went from 7.2% to 6.7% in the Rental rates went from $13.21 to $12.98 during that time. At the end of the quarter, there was 198,400 square feet underway for future delivery. Wilmington The Wilmington office market ended the quarter with a vacancy rate of 5.4%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 151,288 square feet. Vacant sublease space increased to 26,529 square feet. Rental rates ended the third quarter at $16.44, an increase over the previous A total of one building with 8,000 square feet of space delivered to the market, with 178,482 square feet still under construction at the end of the Yakima With no space currently under construction, Yakima absorbed 5,252 square feet of space and delivered 18,760 square feet of space, resulting in a vacancy rate that went from 3.9% to 4.2% over the course of the Rental rates went from $11.72 to $11.44 per square foot. Youngstown/Warren/Boardman The Youngstown/Warren/Boardman office market reported no new deliveries and no space under construction at the end of the third quarter 2016. With this limited construction activity, net absorption of positive 24,102 square feet caused the vacancy rate to decrease from 5.2% to 5.0% in the Rental rates stood at $10.13. 2016 CoStar Group, Inc. The CoStar Office Report 15

National Third Quarter 2016 Inventory & development Historical Deliveries 1983-2017 400.0 Deliveries Average Delivered SF Millions SF 350.0 300.0 253.3 250.0 200.0 150.0 100.0 50.0 295.0 345.5 324.1 260.7 248.9 230.0 207.9 133.2 124.0 102.4 82.2 90.3 61.663.3 168.4 230.8 223.2 240.8 167.2 131.5 124.6 139.9 163.4 177.3 171.1 125.9 63.5 41.4 49.0 55.167.9 85.0 96.4 76.4 0.0 1983 1987 1991 1995 1999 2003 2007 2011 2015 * Future deliveries based on current under construction buildings. Construction Activity Markets Ranked by Under Construction Square Footage Under Construction Inventory Average Bldg Size Market # Bldgs Total RBA Preleased SF Preleased % All Existing U/C New York City 23 13,507,005 7,543,233 55.8% 148,190 587,261 Dallas/Ft Worth 113 11,802,715 7,330,942 62.1% 29,952 104,449 Washington 45 10,672,155 6,487,714 60.8% 46,795 237,159 South Bay/San Jose 39 10,090,399 7,862,590 77.9% 25,332 258,728 Seattle/Puget Sound 31 7,972,967 4,113,147 51.6% 24,822 257,192 Chicago 37 6,444,176 4,407,796 68.4% 34,502 174,167 San Francisco 18 5,190,787 1,615,729 31.1% 43,215 288,377 Denver 47 5,180,281 2,327,264 44.9% 26,165 110,219 Boston 31 5,091,348 2,257,166 44.3% 29,134 164,237 Atlanta 47 4,678,454 2,878,213 61.5% 19,135 99,542 Houston 45 3,917,542 1,924,870 49.1% 42,847 87,056 Los Angeles 45 3,595,692 990,437 27.5% 23,925 79,904 Philadelphia 23 3,350,498 2,816,850 84.1% 18,033 145,674 Nashville 25 3,297,924 2,046,810 62.1% 17,986 131,917 Long Island (New York) 43 3,224,387 1,731,494 53.7% 17,272 74,986 Charlotte 21 3,138,137 1,664,785 53.1% 18,619 149,435 Raleigh/Durham 31 2,603,002 1,324,111 50.9% 20,498 83,968 Orange County (California) 14 2,430,157 1,211,263 49.8% 25,394 173,583 Austin 42 2,218,471 1,079,946 48.7% 20,947 52,821 Baltimore 18 2,134,276 1,020,797 47.8% 21,702 118,571 Phoenix 27 2,047,897 1,012,869 49.5% 20,652 75,848 Kansas City 19 1,982,529 1,628,356 82.1% 26,158 104,344 Milwaukee 6 1,789,500 1,258,675 70.3% 21,534 298,250 Salt Lake City 22 1,753,116 823,782 47.0% 20,842 79,687 Miami-Dade County 28 1,685,607 749,820 44.5% 23,135 60,200 Portland 19 1,545,056 692,948 44.8% 18,765 81,319 Columbus 12 1,524,555 1,086,507 71.3% 22,855 127,046 Oklahoma City 22 1,411,785 943,260 66.8% 13,389 64,172 Memphis 3 1,375,000 1,298,000 94.4% 18,130 458,333 Northern New Jerse y 21 1,356,664 1,090,979 80.4% 21,472 64,603 St. Louis 11 1,207,658 1,017,900 84.3% 23,737 109,787 Detroit 21 1,021,357 917,331 89.8% 20,996 48,636 San Antonio 16 981,047 574,768 58.6% 19,977 61,315 Broward Count y 14 884,521 623,663 70.5% 16,985 63,180 Minneapolis 8 793,574 321,155 40.5% 31,340 99,197 Indianapolis 11 772,500 609,370 78.9% 18,526 70,227 Boise City/Nampa 5 693,680 549,151 79.2% 10,102 138,736 West Michi gan 9 690,968 654,150 94.7% 12,948 76,774 Las Vegas 12 616,697 454,074 73.6% 16,114 51,391 Cleveland 19 601,111 241,724 40.2% 20,248 31,637 Richmond VA 8 547,534 370,213 67.6% 20,011 68,442 Orlando 16 537,120 233,832 43.5% 12,609 33,570 Cincinnati 5 524,874 62,215 11.9% 18,834 104,975 East Bay/Oakland 5 487,700 203,376 41.7% 20,881 97,540 Totals 1,383 147,486,814 87,013,809 59.0% 20,618 106,643 16 The CoStar Office Report 2016 CoStar Group, Inc.

Inventory & development Third Quarter 2016 National Historical Construction Starts & Deliveries* Square Footage Per Quarter Starting and Completing Construction 30.0 Construction Starts Deliveries 25.9 25.0 22.2 23.8 21.2 Millions SF 20.0 15.0 10.0 13.1 11.4 9.9 7.8 7.5 7.8 13.8 12.4 11.5 12.1 10.9 7.2 17.9 16.6 17.2 12.1 12.7 12.3 11.2 18.1 10.4 18.5 17.2 16.1 16.9 16.7 15.6 14.9 18.0 17.7 17.4 15.4 15.4 12.6 5.0 0.0 2012 1q 2013 1q 2014 1q 2015 1q 2016 1q * Select markets included in this historical chart - see Methodology page. Recent Deliveries by Project Size Breakdown of Year-to-Date Development Based on RBA of Project Building Size # Bldgs RBA SF Leased % Leased Avg Rate Single Tenant Multi-Tenant < 50,000 SF 900 11,184,468 8,127,287 72.7% $26.27 3,010,131 8,174,337 50,000 SF - 99,999 SF 109 7,643,684 5,798,212 75.9% $29.16 2,060,645 5,583,039 100,000 SF - 249,999 SF 124 18,928,938 13,819,090 73.0% $35.52 4,356,172 14,572,766 250,000 SF - 499,999 SF 34 11,762,053 9,429,204 80.2% $45.32 3,379,600 8,382,453 >= 500,000 SF 15 10,506,620 9,491,240 90.3% $42.01 4,173,856 6,332,764 Recent Deliveries Leased & Un-Leased SF in Deliveries Last 5 Years Future Deliveries Preleased & Un-Leased SF in Properties Scheduled to Deliver 90.0 Leased Un-Leased 40.0 Preleased Un-Leased 80.0 35.0 70.0 30.0 Millions SF 60.0 50.0 40.0 30.0 Millions SF 25.0 20.0 15.0 20.0 10.0 10.0 5.0 0.0 2012 2013 2014 2015 2016 0.0 2016 4q 2017 1q 2017 2q 2017 3q 2016 CoStar Group, Inc. The CoStar Office Report 17

National Third Quarter 2016 Inventory & development 18 The CoStar Office Report 2016 CoStar Group, Inc.

Inventory & development Third Quarter 2016 National 2016 CoStar Group, Inc. The CoStar Office Report 19

National Third Quarter 2016 Figures at a Glance Class A Market Statistics Third Quarter 2016 Existing Inventory Vacancy YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Albany/Schenect. 29 6,024,143 151,819 156,522 2.6% 6,857 0 195,000 $28.62 Albuquerque 27 4,705,935 492,610 517,163 11.0% 350,683 0 0 $19.28 Anchorage 21 2,929,189 186,581 204,071 7.0% (30,192) 0 0 $36.37 Asheville 13 843,270 24,988 24,988 3.0% 95,893 84,000 0 $25.54 Atlanta 531 122,800,274 14,334,919 15,354,604 12.5% 288,866 242,929 4,098,484 $26.50 Augusta/Richmon 12 912,924 106,068 106,068 11.6% 6,300 0 0 $22.08 Austin 271 36,594,509 3,147,158 3,540,507 9.7% 849,018 661,074 1,695,011 $37.77 Bakersfield 18 1,409,910 146,022 149,921 10.6% 1,021 0 0 $21.19 Baltimore 387 46,657,189 4,984,725 5,157,615 11.1% 130,481 285,900 1,987,022 $26.17 Baton Rouge 19 3,648,151 527,806 579,117 15.9% (259,113) 0 88,000 $20.96 Beaumont/Port A. 4 747,240 74,138 74,138 9.9% (1,860) 0 0 $17.45 Birmingham 83 13,019,342 1,873,404 2,163,929 16.6% (228,308) 0 272,840 $20.93 Boise City/Namp. 23 4,718,713 318,963 333,193 7.1% 63,165 0 554,000 $21.61 Boston 767 149,606,357 13,140,836 14,712,441 9.8% 1,601,044 2,384,938 4,865,585 $27.27 Bremerton/Silve. 2 108,049 16,388 16,388 15.2% (13,959) 0 0 $24.00 Broward County 127 16,570,329 2,123,719 2,297,666 13.9% 369,146 284,377 551,499 $31.05 Brownsville/Har. 2 124,752 31,014 31,014 24.9% 1,544 0 0 $19.79 Buffalo/Niagara. 69 10,694,102 1,418,898 1,427,838 13.4% 114,668 0 40,000 $18.94 Charleston WV 8 921,367 97,712 97,712 10.6% (9,613) 0 0 $19.82 Charleston/N Ch. 78 5,408,572 350,901 366,243 6.8% 268,344 298,384 132,013 $27.48 Charlotte 250 39,224,706 3,795,507 4,015,329 10.2% 196,888 499,334 3,073,777 $26.74 Chattanooga 20 2,723,352 225,320 273,308 10.0% 21,146 0 0 $21.06 Chicago 615 177,474,283 25,665,290 27,395,343 15.4% (427,949) 854,800 5,642,311 $26.38 Cincinnati 179 29,152,251 3,981,481 4,028,409 13.8% 929,253 814,069 524,874 $19.32 Cleveland 151 26,750,058 2,595,837 2,661,189 9.9% 784,365 660,000 290,500 $22.47 Colorado Spring. 48 5,507,866 423,497 428,642 7.8% 105,625 0 0 $21.23 Columbia 28 3,258,810 338,769 354,930 10.9% 134,961 211,203 0 $21.30 Columbus 176 28,399,355 2,680,363 2,859,919 10.1% 713,110 721,400 754,000 $18.66 Columbus GA 9 699,042 3,750 5,092 0.7% (1,342) 0 0 $23.25 Corpus Christi 3 938,444 117,807 117,807 12.6% 5,306 0 0 $29.06 Dallas/Ft Worth 554 143,874,548 22,284,250 23,755,701 16.5% 2,126,401 3,399,628 10,363,293 $27.87 Davenport/Molin. 5 259,084 46,065 46,065 17.8% 6,558 0 0 $15.00 Dayton 58 5,949,692 917,530 949,492 16.0% (31,351) 0 0 $17.96 Deltona/Daytona. 5 443,784 41,792 49,938 11.3% 3,690 0 0 $12.96 Denver 349 64,964,240 6,099,815 7,016,391 10.8% 445,832 549,392 4,267,027 $29.30 Des Moines 54 12,021,970 558,161 558,161 4.6% 158,242 0 325,000 $15.88 Detroit 218 47,631,068 5,055,273 5,173,820 10.9% 1,296,371 127,000 419,574 $21.37 Duluth 10 1,136,362 22,478 22,478 2.0% 208,042 225,000 0 $17.51 East Bay/Oaklan. 115 28,292,570 2,280,231 2,400,467 8.5% 217,350 0 462,700 $38.53 El Paso 5 1,199,826 109,065 109,065 9.1% (537) 0 0 $14.00 Erie 3 345,764 5,442 5,442 1.6% 2,260 0 0 $20.60 Evansville 15 2,096,505 191,636 191,636 9.1% 13,641 0 82,500 $12.77 Fayetteville 11 742,416 42,053 42,053 5.7% (13,250) 0 0 $19.08 Fayetteville/Sp. 24 2,037,371 249,051 252,348 12.4% 66,627 32,000 243,000 $23.34 Fort Smith 0 0 0 0 0.0% 0 0 0 $0.00 Fort Wayne 18 1,869,763 143,385 145,275 7.8% 275,457 239,883 0 $17.07 Fresno 23 2,486,408 291,475 310,653 12.5% 1,021 0 0 $24.47 Green Bay 11 1,193,590 32,596 44,996 3.8% 60,690 0 0 $16.57 20 The CoStar Office Report 2016 CoStar Group, Inc.

Figures at a Glance Third Quarter 2016 National Class A Market Statistics Third Quarter 2016 YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Greensboro/Wins. 69 8,667,153 1,340,973 1,445,917 16.7% 159,249 55,700 0 $19.26 Greenville/Spar. 71 6,695,537 517,602 583,585 8.7% 316,817 140,000 197,000 $22.50 Hampton Roads 141 13,449,945 1,347,314 1,433,802 10.7% 69,347 60,000 0 $20.56 Hartford 75 19,908,699 2,920,756 3,099,510 15.6% (185,273) 0 25,000 $21.81 Hawaii 48 10,219,424 810,488 842,621 8.2% (44,861) 0 78,500 $29.06 Houston 470 139,603,931 20,007,392 23,700,151 17.0% 1,476,162 5,314,395 3,232,012 $33.75 Huntington/Ashl. 7 492,628 59,285 59,285 12.0% 0 0 0 $15.65 Huntsville 27 2,259,857 100,184 100,184 4.4% 40,258 51,000 0 $22.53 Indianapolis 174 26,671,725 2,686,399 2,842,726 10.7% 305,341 345,720 503,000 $19.89 Inland Empire (. 97 8,481,997 974,118 984,065 11.6% 77,666 0 118,000 $25.81 Jackson 43 4,602,014 502,092 511,958 11.1% 189,892 117,500 41,475 $19.62 Jacksonville (F. 100 17,102,410 1,758,034 1,819,147 10.6% (17,497) 132,765 0 $21.82 Kansas City 175 30,610,433 3,013,996 3,393,562 11.1% 665,639 401,000 1,672,208 $21.02 Killeen/Temple/. 2 89,109 0 0 0.0% 0 0 0 $0.00 Kingsport/Brist. 4 524,457 7,472 7,472 1.4% 300,000 300,000 0 $18.82 Knoxville 39 4,701,151 606,424 644,645 13.7% 109,632 199,069 0 $17.87 Lafayette 6 387,777 36,314 36,314 9.4% 163,128 176,938 0 $12.00 Las Vegas 85 10,783,525 1,724,854 1,801,868 16.7% 124,538 0 398,914 $27.10 Lexington/Fayet. 75 4,582,784 472,527 492,528 10.7% 87,120 67,617 0 $18.50 Lincoln 13 2,455,700 78,006 78,006 3.2% (9,541) 0 55,000 $16.09 Little Rock/N L. 21 3,145,902 113,229 123,650 3.9% 50,341 0 0 $19.53 Long Island (Ne. 212 44,321,346 3,142,429 3,545,610 8.0% 279,235 332,565 1,813,258 $35.39 Los Angeles 991 182,138,239 23,875,047 24,824,714 13.6% 1,293,101 657,922 2,622,473 $35.91 Louisville 111 11,722,417 1,230,650 1,256,657 10.7% (40,830) 208,400 131,500 $20.66 Lubbock 7 557,814 58,540 58,540 10.5% 25,133 46,000 0 $17.19 Madison 65 7,071,377 340,166 340,166 4.8% 256,887 185,440 157,000 $17.64 McAllen/Edinbur. 2 188,913 2,855 2,855 1.5% 11,995 0 0 $19.38 Memphis 91 11,898,725 974,901 982,155 8.3% 37,312 0 1,375,000 $19.93 Miami-Dade Coun 157 27,517,018 3,507,138 3,663,256 13.3% 36,091 338,413 1,291,227 $40.53 Milwaukee 98 14,954,052 1,657,627 1,709,516 11.4% 398,820 669,564 1,779,500 $20.47 Minneapolis 161 51,891,489 4,277,357 4,394,758 8.5% 903,785 1,502,293 608,750 $25.82 Mobile 12 1,431,714 212,938 265,399 18.5% (65,879) 0 117,040 $16.67 Montgomery 22 2,999,365 167,134 171,935 5.7% 19,719 0 0 $19.02 Myrtle Beach/Co. 6 456,337 6,885 6,885 1.5% 12,622 0 0 $20.18 Nashville 149 22,944,247 730,507 915,014 4.0% 456,300 418,003 3,137,986 $29.77 New Orleans/Met. 35 12,265,395 1,000,421 1,061,715 8.7% 40,534 147,000 52,400 $19.02 New York City 466 327,778,748 28,089,789 30,579,728 9.3% 718,027 1,845,663 13,375,304 $71.23 North Bay/Santa. 46 3,731,984 1,130,197 1,130,197 30.3% (546,024) 85,000 0 $32.12 Northern New Je. 916 159,817,404 24,835,023 26,831,385 16.8% 305,788 987,900 1,160,759 $28.28 Ocala 2 117,460 20,987 20,987 17.9% (4,198) 0 0 $16.43 Oklahoma City 44 8,065,327 489,273 494,988 6.1% 47,821 90,000 1,007,716 $21.65 Olympia 3 525,759 0 0 0.0% 0 0 0 $0.00 Omaha/Council B. 76 11,287,589 576,445 577,814 5.1% 242,965 236,888 209,811 $20.52 Orange County (. 283 45,773,253 5,175,989 5,414,538 11.8% 318,163 521,044 2,366,020 $32.89 Orlando 209 26,505,001 2,612,087 2,707,004 10.2% 768,474 193,945 341,000 $23.53 Palm Beach Coun. 133 14,659,454 2,130,064 2,189,606 14.9% 261,151 0 0 $32.87 Pensacola 9 424,457 36,335 36,335 8.6% 46,550 27,550 42,036 $20.85 Peoria 9 989,081 17,088 17,088 1.7% (6,524) 0 0 $16.00 Existing Inventory Vacancy 2016 CoStar Group, Inc. The CoStar Office Report 21

National Third Quarter 2016 Figures at a Glance Class A Market Statistics Third Quarter 2016 Existing Inventory Vacancy YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Philadelphia 973 133,178,143 13,592,413 14,168,030 10.6% 1,172,161 768,014 3,082,265 $27.05 Phoenix 296 47,524,686 6,878,171 7,321,905 15.4% 1,246,069 1,654,436 1,086,718 $28.04 Pittsburgh 217 37,399,005 3,365,783 3,684,080 9.9% 183,970 236,747 199,563 $25.40 Port St Lucie/F. 21 1,220,454 170,429 170,429 14.0% (1,677) 0 60,000 $18.97 Portland 201 29,707,521 2,363,892 2,512,439 8.5% 953,351 847,550 1,047,502 $28.32 Portland/South. 28 2,967,273 47,228 79,827 2.7% (9,110) 0 0 $20.65 Providence 31 6,432,697 978,419 991,034 15.4% 65,389 72,000 0 $23.10 Raleigh/Durham 327 35,116,237 2,288,955 2,676,079 7.6% 660,597 364,655 2,334,724 $24.88 Reno/Sparks 21 1,735,029 193,372 199,452 11.5% (2,779) 0 0 $22.15 Richmond VA 156 21,083,875 1,826,247 2,250,445 10.7% (195,850) 137,941 520,624 $21.19 Roanoke 7 860,513 314,321 316,305 36.8% (6,808) 0 0 $20.58 Rochester 58 7,856,143 1,441,648 1,494,073 19.0% 86,585 151,180 200,000 $14.59 Sacramento 189 26,196,735 2,829,610 2,913,319 11.1% (109,636) 30,800 0 $26.03 Salinas 0 0 0 0 0.0% 0 0 0 $0.00 Salt Lake City 212 25,353,644 1,756,294 2,104,584 8.3% 2,000,459 2,534,138 1,493,858 $26.11 San Antonio 112 15,262,446 2,363,417 2,443,161 16.0% 276,770 384,271 583,650 $24.27 San Diego 275 35,369,368 3,315,598 3,838,391 10.9% 220,939 0 208,896 $37.29 San Francisco 307 77,933,898 4,794,330 5,624,124 7.2% 1,467,637 1,002,308 4,784,952 $56.88 San Luis Obispo. 0 0 0 0 0.0% 0 0 0 $0.00 Santa Barbara/S. 1 72,200 0 0 0.0% 0 0 0 $0.00 Santa Cruz/Wats. 0 0 0 0 0.0% 0 0 0 $0.00 Savannah 10 444,154 15,449 15,449 3.5% 13,800 0 0 $23.51 Seattle/Puget S. 292 63,957,121 4,584,266 4,804,396 7.5% 2,394,352 1,107,271 7,431,078 $41.24 Shreveport/Boss. 5 538,410 73,028 74,970 13.9% 123,180 116,000 0 $15.40 South Bay/San J. 146 29,089,680 2,676,678 2,897,382 10.0% 686,136 1,298,292 8,609,006 $42.72 South Bend/Mish. 13 1,083,555 112,361 117,665 10.9% (3,382) 0 0 $17.88 Southwest Flori. 69 3,765,085 521,072 524,672 13.9% 42,175 0 0 $21.53 Spokane 10 1,384,475 210,414 217,826 15.7% 10,739 0 0 $19.58 Springfield 9 908,897 9,028 9,028 1.0% 11,592 0 0 $18.16 St. Louis 252 41,033,730 3,058,056 3,331,179 8.1% 298,590 105,000 1,045,000 $21.61 Stockton/Modest. 19 1,961,813 236,748 240,130 12.2% 139,100 0 306,000 $24.18 Syracuse 20 3,216,882 270,529 319,266 9.9% 88,225 0 0 $16.24 Tallahassee 14 1,349,093 35,182 35,182 2.6% 9,477 0 20,240 $25.32 Tampa/St Peters. 228 34,009,545 2,653,266 2,870,285 8.4% 470,292 176,089 0 $25.81 Toledo 13 2,946,941 320,429 320,429 10.9% 29,823 0 210,400 $18.10 Tucson 21 2,660,233 250,403 255,219 9.6% 68,570 28,265 0 $23.78 Tulsa 27 8,292,223 729,753 729,753 8.8% (26,511) 0 0 $18.08 Utica/Rome 1 122,760 0 0 0.0% 0 0 0 $0.00 Visalia/Porterv. 0 0 0 0 0.0% 0 0 0 $0.00 Washington 1,360 258,058,179 41,026,183 43,065,114 16.7% 109,457 1,463,978 10,312,295 $39.17 West Michigan 84 8,782,169 361,530 361,530 4.1% 132,535 134,760 0 $19.28 Westchester/So. 406 65,789,781 9,067,709 9,480,303 14.4% 690,567 476,785 151,000 $32.31 Wichita 10 1,578,227 80,046 80,046 5.1% (3,980) 0 190,000 $14.69 Wilmington 19 1,285,000 158,039 160,021 12.5% 7,211 0 126,300 $22.08 Yakima 0 0 0 0 0.0% 0 0 0 $0.00 Youngstown/Warr 7 445,329 56,671 56,671 12.7% 44,204 50,000 0 $8.93 Totals 17,972 3,404,560,717 382,148,886 410,479,121 12.1% 33,941,587 41,571,085 122,841,970 $30.20 22 The CoStar Office Report 2016 CoStar Group, Inc.

Figures at a Glance Third Quarter 2016 National Class B Market Statistics Third Quarter 2016 Existing Inventory Vacancy YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Albany/Schenect. 1,692 42,047,880 2,113,704 2,119,979 5.0% 816,918 55,410 35,468 $15.15 Albuquerque 1,629 24,668,493 2,160,311 2,209,556 9.0% 414,372 42,853 18,000 $14.79 Anchorage 293 8,699,618 398,469 423,866 4.9% 31,769 16,000 0 $26.30 Asheville 834 8,239,901 269,697 292,119 3.5% 52,292 0 105,000 $15.34 Atlanta 5,754 126,916,892 16,678,874 17,191,018 13.5% 361,795 198,307 579,970 $18.16 Augusta/Richmon 747 8,772,304 729,326 747,339 8.5% 125,561 16,521 24,000 $12.91 Austin 2,065 43,354,937 3,479,012 3,692,510 8.5% 87,787 314,370 523,460 $27.58 Bakersfield 502 8,024,782 485,842 493,501 6.1% 106,276 67,600 58,600 $19.10 Baltimore 2,726 66,330,101 7,236,175 7,335,691 11.1% 395,921 428,090 147,254 $20.52 Baton Rouge 582 6,634,742 841,067 841,067 12.7% (40,867) 81,958 154,992 $18.38 Beaumont/Port A. 129 2,844,480 177,393 177,393 6.2% 6,874 12,825 5,000 $15.66 Birmingham 846 22,102,276 2,714,923 2,732,093 12.4% 15,078 38,048 154,100 $16.22 Boise City/Namp. 1,151 17,722,702 1,274,856 1,303,296 7.4% 263,419 74,413 139,680 $16.40 Boston 4,541 162,726,007 13,641,013 14,417,090 8.9% 1,644,012 445,415 225,763 $19.81 Bremerton/Silve. 153 2,383,239 214,350 215,638 9.0% (8,492) 0 0 $19.59 Broward County 1,190 32,120,934 3,436,205 3,481,052 10.8% 420,387 63,879 333,022 $23.51 Brownsville/Har. 197 2,418,399 124,941 124,941 5.2% 59,225 25,072 0 $16.36 Buffalo/Niagara. 831 20,824,511 1,256,529 1,259,134 6.0% 290,222 75,000 24,000 $15.02 Charleston WV 573 8,874,101 727,121 733,606 8.3% (77,516) 0 35,400 $15.38 Charleston/N Ch. 1,324 14,578,245 1,163,995 1,200,763 8.2% 63,535 33,362 274,057 $18.63 Charlotte 2,049 43,640,767 3,441,867 3,628,288 8.3% 493,915 250,003 64,360 $18.95 Chattanooga 318 9,571,648 618,123 651,317 6.8% 210,586 2,246 40,000 $14.99 Chicago 6,249 212,142,503 26,398,235 27,605,033 13.0% (611,855) 798,570 801,865 $21.13 Cincinnati 1,022 36,014,141 3,878,804 3,893,446 10.8% 401,044 42,586 0 $14.50 Cleveland 2,191 74,082,644 9,264,396 9,318,212 12.6% 404,275 81,664 310,611 $16.45 Colorado Spring. 940 18,904,655 2,532,978 2,534,567 13.4% (109,518) 0 22,640 $15.81 Columbia 1,481 22,828,752 1,388,286 1,483,155 6.5% (10,712) 44,522 101,370 $15.21 Columbus 1,161 39,277,337 2,705,388 2,744,422 7.0% (57,897) 49,273 770,555 $17.13 Columbus GA 391 5,831,999 435,863 438,928 7.5% (85,901) 81,896 11,480 $14.58 Corpus Christi 373 6,787,685 518,453 543,861 8.0% 151,976 85,384 151,000 $13.90 Dallas/Ft Worth 5,405 166,745,214 23,201,560 23,743,510 14.2% 1,162,259 1,263,908 1,439,422 $20.77 Davenport/Molin. 249 4,764,560 349,259 349,259 7.3% 145,460 0 42,000 $11.53 Dayton 475 13,559,269 2,297,439 2,322,359 17.1% 124,158 0 0 $14.56 Deltona/Daytona. 957 7,668,543 514,987 524,171 6.8% 141,577 8,074 76,000 $12.22 Denver 3,916 105,937,098 10,302,859 10,746,752 10.1% 786,083 588,646 913,254 $22.24 Des Moines 693 18,803,434 808,721 875,268 4.7% 232,232 45,400 128,883 $12.47 Detroit 3,137 102,946,786 15,109,011 15,221,933 14.8% 1,229,303 450,566 601,783 $18.51 Duluth 74 3,077,348 82,882 82,882 2.7% 30,250 0 0 $11.86 East Bay/Oaklan. 1,731 54,769,596 4,944,548 5,154,127 9.4% 140,796 96,016 25,000 $26.60 El Paso 526 8,428,858 650,709 659,225 7.8% (12,291) 60,000 232,502 $17.18 Erie 363 6,078,012 195,290 195,290 3.2% (1,834) 0 0 $9.53 Evansville 415 5,869,531 344,938 344,938 5.9% 110,834 0 0 $11.29 Fayetteville 517 4,372,519 342,281 342,281 7.8% 86,478 0 27,568 $14.88 Fayetteville/Sp. 585 8,888,313 474,407 486,722 5.5% 590,576 187,051 10,500 $16.03 Fort Smith 298 3,358,812 88,690 88,690 2.6% 48,340 0 0 $11.59 Fort Wayne 432 9,435,182 574,035 600,699 6.4% 175,623 19,967 0 $13.62 Fresno 887 13,614,314 1,531,486 1,541,196 11.3% 307,111 42,339 20,776 $17.51 Green Bay 567 10,713,732 867,214 868,014 8.1% 117,509 13,950 5,000 $12.80 2016 CoStar Group, Inc. The CoStar Office Report 23

National Third Quarter 2016 Figures at a Glance Class B Market Statistics Third Quarter 2016 YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Greensboro/Wins. 1,069 27,954,540 2,586,532 2,602,672 9.3% 19,935 50,183 54,579 $14.58 Greenville/Spar. 1,915 20,758,074 1,499,066 1,608,697 7.7% 176,142 109,266 179,074 $14.63 Hampton Roads 1,592 26,985,340 3,461,072 3,502,066 13.0% 165,348 91,278 250,080 $16.26 Hartford 1,418 40,288,979 2,747,531 2,794,276 6.9% 294,112 70,411 100,050 $18.80 Hawaii 440 15,997,683 497,208 511,175 3.2% 61,705 11,130 10,919 $27.96 Houston 2,976 124,992,274 17,046,357 18,249,916 14.6% (177,869) 563,310 685,530 $21.42 Huntington/Ashl. 595 5,566,155 145,402 145,402 2.6% 106,434 0 20,000 $12.59 Huntsville 448 12,609,832 1,093,729 1,156,766 9.2% 233,855 31,236 6,000 $14.41 Indianapolis 2,486 53,291,055 3,002,875 3,149,963 5.9% 715,580 83,269 269,500 $16.46 Inland Empire (. 3,046 44,517,352 4,597,381 4,671,227 10.5% 236,677 241,043 314,702 $20.05 Jackson 802 13,120,672 707,336 721,986 5.5% 95,220 87,686 6,000 $14.27 Jacksonville (F. 1,755 31,629,554 2,981,221 3,114,461 9.8% 371,042 34,660 98,752 $17.57 Kansas City 1,896 62,041,964 5,814,824 5,911,171 9.5% 443,548 0 310,321 $17.53 Killeen/Temple/. 142 1,612,478 136,436 136,436 8.5% (13,361) 8,284 0 $12.79 Kingsport/Brist. 191 3,687,887 262,053 262,053 7.1% 99,819 0 30,000 $14.05 Knoxville 685 13,233,136 1,010,455 1,019,078 7.7% 344,238 80,714 142,740 $14.95 Lafayette 148 3,749,326 217,723 228,624 6.1% 3,668 0 50,000 $16.03 Las Vegas 2,282 43,702,190 6,555,996 6,870,489 15.7% (90,750) 194,458 217,783 $18.25 Lexington/Fayet. 546 9,699,448 875,799 898,066 9.3% 100,752 11,800 61,150 $15.30 Lincoln 534 11,888,789 439,815 447,339 3.8% 156,021 24,750 0 $13.08 Little Rock/N L. 328 10,835,381 599,834 613,078 5.7% 62,232 30,143 125,872 $16.11 Long Island (Ne. 4,140 83,085,871 6,760,357 6,804,719 8.2% 169,570 110,435 1,411,129 $26.52 Los Angeles 5,729 162,900,507 17,087,720 17,386,103 10.7% 1,715,482 1,074,123 973,219 $30.25 Louisville 1,221 25,647,241 2,585,770 2,662,579 10.4% (145,863) 10,700 107,615 $15.40 Lubbock 236 4,735,372 383,054 388,402 8.2% 55,186 23,698 54,795 $16.00 Madison 826 21,527,295 1,147,209 1,201,615 5.6% 487,126 121,000 26,250 $14.97 McAllen/Edinbur. 372 5,576,895 302,703 302,703 5.4% 90,303 24,280 66,538 $15.70 Memphis 1,271 27,733,120 3,087,282 3,202,628 11.5% 21,030 61,942 0 $16.46 Miami-Dade Coun 1,164 47,155,846 4,925,458 5,013,001 10.6% 247,643 147,555 394,380 $28.82 Milwaukee 1,494 47,812,043 3,741,324 3,822,685 8.0% 799,946 33,300 10,000 $15.79 Minneapolis 2,086 99,082,283 7,441,004 7,711,443 7.8% 240,184 155,977 184,824 $17.46 Mobile 849 9,902,579 548,409 548,409 5.5% 37,729 11,619 41,627 $12.74 Montgomery 487 7,405,567 593,148 617,503 8.3% 126,473 17,098 12,006 $12.90 Myrtle Beach/Co. 274 3,192,332 138,241 138,241 4.3% 20,689 4,000 8,330 $15.07 Nashville 1,385 35,574,735 1,870,620 1,882,279 5.3% 318,133 98,275 159,938 $21.01 New Orleans/Met. 691 16,517,543 1,823,072 1,863,323 11.3% 252,740 131,062 27,500 $17.00 New York City 1,379 159,203,921 10,510,446 11,583,093 7.3% (1,247,043) 18,964 131,701 $61.85 North Bay/Santa. 1,307 23,301,803 1,901,382 1,924,444 8.3% 706,170 137,600 14,000 $25.07 Northern New Je. 5,232 122,125,784 15,863,439 16,367,227 13.4% 1,066,840 185,898 195,905 $21.97 Ocala 138 1,311,139 164,411 164,411 12.5% 56,532 0 6,277 $13.72 Oklahoma City 1,733 32,816,423 2,309,828 2,348,875 7.2% 848,570 808,760 404,069 $16.45 Olympia 432 6,408,750 463,013 463,013 7.2% 163,240 16,700 0 $17.56 Omaha/Council B. 828 26,270,092 1,531,145 1,569,851 6.0% 307,162 16,944 23,648 $17.08 Orange County (. 2,980 86,035,465 7,180,789 7,394,881 8.6% 965,338 268,065 64,137 $26.28 Orlando 2,983 49,128,607 4,837,735 4,907,573 10.0% 710,312 194,301 196,120 $18.92 Palm Beach Coun. 1,112 28,755,308 3,539,948 3,588,186 12.5% 450,922 131,279 67,329 $25.90 Pensacola 610 6,419,581 412,402 412,402 6.4% 57,392 0 151,020 $17.16 Peoria 266 6,941,215 382,219 382,219 5.5% 63,192 0 0 $12.48 Existing Inventory Vacancy 24 The CoStar Office Report 2016 CoStar Group, Inc.

Figures at a Glance Third Quarter 2016 National Class B Market Statistics Third Quarter 2016 Existing Inventory Vacancy YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Philadelphia 8,125 175,901,703 16,472,385 16,753,254 9.5% 1,023,461 304,810 268,233 $20.10 Phoenix 4,550 99,544,449 15,680,556 16,251,618 16.3% 1,494,563 244,469 961,179 $21.75 Pittsburgh 2,245 60,241,395 4,506,500 4,574,010 7.6% 580,150 157,147 212,080 $19.42 Port St Lucie/F. 458 5,991,821 543,847 543,847 9.1% 53,499 10,267 0 $14.52 Portland 1,521 45,324,434 3,487,298 3,612,246 8.0% 312,404 331,439 497,554 $22.02 Portland/South. 443 10,406,206 622,881 644,957 6.2% 151,328 41,852 0 $15.35 Providence 682 19,270,653 1,196,237 1,201,517 6.2% 265,259 108,213 187,437 $17.28 Raleigh/Durham 2,140 46,295,373 3,284,268 3,342,977 7.2% 588,126 174,792 268,278 $17.95 Reno/Sparks 758 10,306,109 1,248,916 1,289,334 12.5% (55,018) 17,036 16,975 $18.10 Richmond VA 1,247 29,350,152 2,297,148 2,360,740 8.0% 107,906 60,378 26,910 $16.26 Roanoke 288 6,664,852 761,548 763,163 11.5% (195,197) 0 16,800 $14.78 Rochester 712 23,941,953 1,394,093 1,409,961 5.9% 156,297 24,000 33,000 $13.19 Sacramento 1,691 45,428,651 5,415,431 5,558,337 12.2% 378,204 65,630 307,460 $20.47 Salinas 259 4,521,606 566,860 572,135 12.7% (31,326) 0 141,226 $21.47 Salt Lake City 2,746 59,272,314 2,886,384 3,232,620 5.5% 1,027,148 826,455 259,258 $17.14 San Antonio 1,566 42,767,384 4,017,156 4,063,282 9.5% 564,305 292,588 397,397 $19.35 San Diego 1,917 54,414,362 6,785,349 6,990,443 12.8% 680,055 374,626 156,971 $28.48 San Francisco 1,444 64,798,286 4,157,713 4,884,619 7.5% 349,751 824,423 405,835 $55.09 San Luis Obispo. 165 1,939,657 48,939 50,539 2.6% 12,523 0 75,369 $19.25 Santa Barbara/S. 1,165 10,550,402 298,323 313,627 3.0% 160,363 52,000 0 $22.48 Santa Cruz/Wats. 414 4,618,854 450,658 450,658 9.8% 146,005 0 0 $22.47 Savannah 524 6,065,961 435,172 440,231 7.3% 36,803 37,945 30,000 $17.12 Seattle/Puget S. 3,019 98,474,249 6,860,462 7,267,421 7.4% 749,545 31,055 541,889 $25.92 Shreveport/Boss. 121 3,770,643 374,582 382,692 10.1% 113,340 0 57,500 $13.94 South Bay/San J. 1,762 63,471,432 4,197,726 5,106,688 8.0% 339,506 865,024 1,481,393 $39.79 South Bend/Mish. 204 3,639,065 297,666 297,666 8.2% 170,268 0 0 $14.60 Southwest Flori. 1,682 20,238,282 1,702,861 1,727,942 8.5% 422,634 155,044 67,000 $15.72 Spokane 994 16,215,436 1,565,839 1,576,092 9.7% 245,199 91,000 0 $15.26 Springfield 424 5,570,040 418,606 435,830 7.8% 44,294 14,000 0 $14.12 St. Louis 2,068 59,160,335 6,701,724 6,719,945 11.4% 419,751 11,600 162,658 $16.66 Stockton/Modest. 656 9,629,285 769,405 776,180 8.1% 101,326 0 0 $14.51 Syracuse 1,073 23,006,429 1,946,653 1,953,355 8.5% 280,339 124,075 24,000 $14.96 Tallahassee 1,524 18,011,069 1,285,292 1,329,131 7.4% 276,691 18,346 60,455 $15.84 Tampa/St Peters. 4,841 66,416,150 6,722,568 6,830,828 10.3% 820,800 107,815 181,576 $19.23 Toledo 523 11,100,790 736,969 749,025 6.7% 367,510 201,655 10,000 $12.82 Tucson 1,267 17,456,506 2,318,696 2,345,971 13.4% 169,044 83,685 33,271 $18.27 Tulsa 883 30,153,143 3,714,215 3,776,237 12.5% 306,024 310,436 310,332 $14.28 Utica/Rome 266 5,693,334 305,611 305,611 5.4% (30,498) 0 0 $10.78 Visalia/Porterv. 159 1,357,263 123,832 123,832 9.1% 43,837 3,900 6,144 $17.49 Washington 4,464 174,325,107 24,144,920 25,180,520 14.4% (146,642) 125,929 359,860 ###### West Michigan 2,062 42,310,797 3,469,765 3,496,413 8.3% 902,435 471,817 690,968 $13.56 Westchester/So. 2,303 62,470,285 7,831,357 7,883,038 12.6% 710,311 109,332 35,510 $26.14 Wichita 667 14,621,275 1,168,808 1,176,757 8.0% 95,360 0 8,400 $14.02 Wilmington 603 7,143,608 391,438 408,334 5.7% 148,288 28,454 52,182 $16.53 Yakima 422 3,395,524 128,838 128,838 3.8% 81,437 18,760 0 $11.48 Youngstown/Warr 440 5,950,771 402,819 402,819 6.8% 56,177 0 0 $10.77 Totals 199,167 4,964,324,617 484,935,599 500,932,226 10.1% 37,711,876 18,448,377 24,644,844 $21.28 2016 CoStar Group, Inc. The CoStar Office Report 25

National Third Quarter 2016 Figures at a Glance Class C Market Statistics Third Quarter 2016 Existing Inventory Vacancy YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Albany/Schenect. 2,248 15,549,149 660,875 687,746 4.4% 139,572 0 0 $11.68 Albuquerque 1,365 7,679,987 266,603 266,783 3.5% 203,885 0 0 $12.26 Anchorage 359 2,861,123 130,304 130,304 4.6% (7,176) 0 0 $19.88 Asheville 410 3,195,173 59,415 59,415 1.9% 39,173 0 0 $13.96 Atlanta 9,580 53,862,276 4,143,499 4,230,995 7.9% 21,270 0 0 $14.67 Augusta/Richmon 933 3,947,016 229,037 229,787 5.8% 59,633 0 0 $11.54 Austin 2,231 15,715,475 605,399 630,000 4.0% (112,473) 0 0 $24.40 Bakersfield 614 3,898,879 149,420 149,420 3.8% 33,129 0 0 $15.58 Baltimore 3,272 25,577,099 1,657,019 1,657,019 6.5% 243,536 0 0 $18.41 Baton Rouge 1,783 12,361,573 1,079,455 1,103,897 8.9% 385,033 0 0 $13.88 Beaumont/Port A. 667 4,567,689 147,762 147,762 3.2% 5,743 0 0 $11.21 Birmingham 2,962 23,068,708 1,705,585 1,707,909 7.4% 137,584 0 0 $12.80 Boise City/Namp. 1,701 6,602,314 381,870 383,030 5.8% (6,493) 0 0 $11.87 Boston 8,356 85,748,065 3,287,280 3,345,355 3.9% 659,606 0 0 $17.73 Bremerton/Silve. 342 2,460,304 121,736 131,594 5.3% 41,875 0 0 $13.34 Broward County 2,761 20,575,540 1,211,853 1,222,782 5.9% 243,237 0 0 $22.39 Brownsville/Har. 170 1,139,142 38,643 38,643 3.4% 28,498 0 0 $11.32 Buffalo/Niagara. 890 7,401,588 370,264 370,764 5.0% 89,104 0 0 $10.79 Charleston WV 404 2,778,489 216,942 222,292 8.0% 32,738 0 0 $14.25 Charleston/N Ch. 1,633 7,712,284 168,554 171,933 2.2% 40,378 0 0 $14.95 Charlotte 3,197 19,463,524 826,733 836,560 4.3% 219,158 0 0 $16.05 Chattanooga 698 5,081,915 329,890 329,890 6.5% 110,181 0 0 $15.38 Chicago 6,721 79,087,451 7,216,791 7,355,517 9.3% 137,541 0 0 $18.37 Cincinnati 3,982 32,447,666 1,897,712 1,907,335 5.9% 344,426 0 0 $13.25 Cleveland 4,847 44,727,528 4,778,754 4,826,216 10.8% 122,961 0 0 $14.68 Colorado Spring. 732 4,314,674 249,189 249,189 5.8% 69,257 0 0 $11.74 Columbia 1,288 6,055,329 398,197 398,197 6.6% 51,074 0 0 $12.68 Columbus 2,942 30,121,765 1,507,616 1,521,970 5.1% 191,946 0 0 $14.73 Columbus GA 603 2,918,680 170,423 170,423 5.8% 35,607 0 0 $10.33 Corpus Christi 317 2,434,803 154,498 159,307 6.5% 10,305 0 0 $10.97 Dallas/Ft Worth 5,984 47,096,140 3,600,322 3,633,726 7.7% 123,585 0 0 $17.02 Davenport/Molin. 262 2,823,155 181,733 181,733 6.4% 103,435 0 0 $10.31 Dayton 2,501 23,519,392 2,559,486 2,596,656 11.0% 151,598 0 0 $11.92 Deltona/Daytona. 733 2,881,830 124,950 124,950 4.3% 53,184 0 0 $10.41 Denver 3,262 26,043,080 1,094,531 1,103,279 4.2% 214,989 0 0 $18.02 Des Moines 614 5,028,215 205,812 205,812 4.1% 143,558 0 0 $11.69 Detroit 6,073 47,367,851 4,411,081 4,427,430 9.3% 525,900 0 0 $15.68 Duluth 371 2,858,230 80,194 80,194 2.8% 61,099 0 0 $12.33 East Bay/Oaklan. 3,425 27,003,348 1,213,423 1,232,002 4.6% 213,461 0 0 $21.73 El Paso 1,917 12,260,202 776,689 778,489 6.3% (2,891) 0 0 $15.28 Erie 400 2,511,171 149,137 149,137 5.9% 13,244 0 0 $9.92 Evansville 349 3,181,664 166,692 166,692 5.2% 16,755 0 0 $10.34 Fayetteville 436 1,817,186 126,984 126,984 7.0% 13,565 0 0 $11.49 Fayetteville/Sp. 642 3,699,918 170,139 170,139 4.6% 97,546 0 0 $13.77 Fort Smith 211 1,222,042 27,059 27,059 2.2% 45,923 0 0 $8.97 Fort Wayne 651 5,769,103 399,374 399,374 6.9% 113,927 0 0 $12.01 Fresno 1,942 15,931,311 1,044,316 1,044,316 6.6% 142,826 0 0 $13.88 Green Bay 449 3,539,091 313,552 319,552 9.0% 113,724 0 0 $9.80 26 The CoStar Office Report 2016 CoStar Group, Inc.

Figures at a Glance Third Quarter 2016 National Class C Market Statistics Third Quarter 2016 YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Greensboro/Wins. 3,224 19,515,553 1,171,277 1,176,877 6.0% 426,211 0 0 $12.31 Greenville/Spar. 2,357 10,280,249 608,266 615,699 6.0% (18,168) 0 0 $11.46 Hampton Roads 1,647 9,454,857 595,913 596,113 6.3% 84,938 0 0 $12.96 Hartford 4,281 34,704,841 2,195,152 2,195,152 6.3% 405,414 0 0 $15.98 Hawaii 742 7,596,442 237,397 240,349 3.2% (16,758) 0 0 $22.80 Houston 3,658 39,786,120 2,861,712 2,875,158 7.2% (15,710) 0 0 $17.79 Huntington/Ashl. 441 2,758,098 261,629 261,629 9.5% (22,772) 0 0 $8.49 Huntsville 543 6,012,878 824,645 824,645 13.7% 228,378 0 0 $11.09 Indianapolis 2,843 21,984,351 1,421,150 1,434,632 6.5% 255,448 0 0 $13.66 Inland Empire (. 3,046 20,139,800 1,373,662 1,389,857 6.9% 217,629 0 0 $15.41 Jackson 792 5,694,710 191,509 192,325 3.4% 44,975 0 0 $12.59 Jacksonville (F. 2,612 14,324,324 1,255,498 1,259,896 8.8% 34,571 0 0 $15.97 Kansas City 2,355 23,124,133 1,478,331 1,484,051 6.4% 391,732 0 0 $13.73 Killeen/Temple/. 207 1,324,714 121,184 121,184 9.1% 16,694 0 0 $7.88 Kingsport/Brist. 432 2,995,484 220,861 220,861 7.4% (26,977) 0 0 $10.48 Knoxville 2,189 15,514,347 466,334 501,609 3.2% 153,969 0 0 $12.39 Lafayette 467 3,971,840 158,901 159,965 4.0% 67,698 0 0 $14.42 Las Vegas 1,539 8,456,279 1,057,894 1,061,178 12.5% 16,393 0 0 $13.64 Lexington/Fayet. 641 4,440,143 226,404 235,216 5.3% (32,128) 0 0 $10.84 Lincoln 234 1,585,167 43,469 43,469 2.7% 40,148 0 0 $12.08 Little Rock/N L. 2,105 19,919,215 839,219 853,651 4.3% 50,749 0 0 $13.72 Long Island (Ne. 5,960 50,703,049 2,212,425 2,254,678 4.4% 347,552 0 0 $24.49 Los Angeles 11,365 87,650,934 3,546,667 3,614,920 4.1% 289,633 3,504 0 $27.39 Louisville 2,265 17,869,243 958,355 959,753 5.4% 122,521 0 0 $13.28 Lubbock 969 5,488,963 315,376 321,722 5.9% (109,612) 0 0 $11.18 Madison 587 4,458,653 307,654 313,433 7.0% 59,297 0 0 $10.59 McAllen/Edinbur. 224 1,736,556 135,435 135,435 7.8% (16,856) 0 0 $14.24 Memphis 1,499 12,238,172 1,188,965 1,188,965 9.7% 123,820 0 0 $12.38 Miami-Dade Coun 3,035 26,104,367 1,256,948 1,261,058 4.8% 93,590 0 0 $25.77 Milwaukee 2,117 17,103,082 909,477 913,189 5.3% 344,690 0 0 $12.26 Minneapolis 3,856 40,293,508 2,187,179 2,224,247 5.5% 147,371 0 0 $15.09 Mobile 1,247 5,818,405 265,681 265,681 4.6% (2,095) 0 0 $10.67 Montgomery 806 5,568,513 281,030 281,030 5.0% 28,686 0 0 $10.69 Myrtle Beach/Co. 509 2,248,852 48,685 48,685 2.2% (17,003) 0 0 $11.26 Nashville 2,882 20,908,773 608,632 608,632 2.9% 135,883 0 0 $18.67 New Orleans/Met. 2,470 19,159,201 853,959 857,921 4.5% 273,978 0 0 $14.83 New York City 1,923 71,396,318 3,563,600 3,771,488 5.3% (617,753) 0 0 $55.12 North Bay/Santa. 2,358 14,154,971 822,169 827,058 5.8% 190,764 0 0 $18.92 Northern New Je. 10,834 82,700,946 6,466,268 6,520,081 7.9% 108,211 0 0 $19.84 Ocala 479 3,095,348 153,868 171,544 5.5% 34,432 0 0 $11.72 Oklahoma City 2,587 17,546,075 1,623,009 1,627,345 9.3% 104,044 0 0 $13.02 Olympia 424 2,740,047 204,505 204,505 7.5% 30,881 0 0 $15.07 Omaha/Council B. 901 7,620,014 306,813 306,813 4.0% 135,565 0 0 $12.33 Orange County (. 2,803 22,230,380 968,793 976,358 4.4% 59,199 0 0 $21.57 Orlando 5,078 28,644,989 1,710,557 1,716,549 6.0% 328,510 0 0 $16.36 Palm Beach Coun. 1,563 11,734,304 574,681 582,720 5.0% 86,643 0 0 $23.03 Pensacola 1,373 7,451,392 307,643 307,643 4.1% 111,495 0 0 $12.38 Peoria 251 2,410,215 173,610 173,610 7.2% 28,930 0 0 $11.25 Existing Inventory Vacancy 2016 CoStar Group, Inc. The CoStar Office Report 27

National Third Quarter 2016 Figures at a Glance Class C Market Statistics Third Quarter 2016 Existing Inventory Vacancy YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Philadelphia 14,048 108,300,463 6,825,556 6,867,447 6.3% 506,446 2,797 0 $17.80 Phoenix 3,385 22,913,982 2,568,334 2,610,092 11.4% 191,774 0 0 $16.44 Pittsburgh 4,337 29,303,886 1,520,616 1,527,216 5.2% 559,850 0 0 $15.18 Port St Lucie/F. 508 2,572,963 151,796 154,167 6.0% 3,563 0 0 $14.57 Portland 3,561 24,100,985 1,066,829 1,080,273 4.5% 170,946 0 0 $17.55 Portland/South. 1,281 11,198,564 612,308 614,528 5.5% 105,091 0 0 $12.10 Providence 2,126 16,914,240 727,927 739,677 4.4% 263,952 0 0 $14.64 Raleigh/Durham 2,247 15,216,493 456,129 462,915 3.0% 62,760 0 0 $16.27 Reno/Sparks 832 6,981,842 645,797 650,460 9.3% 110,941 0 0 $15.08 Richmond VA 1,739 12,439,909 741,276 748,260 6.0% 153,603 0 0 $12.29 Roanoke 712 5,933,347 399,929 402,979 6.8% 663 0 0 $11.71 Rochester 1,188 10,560,177 553,225 566,635 5.4% 30,542 0 0 $12.25 Sacramento 2,943 29,402,711 3,346,730 3,353,146 11.4% 353,161 0 0 $17.37 Salinas 565 3,679,231 88,597 91,012 2.5% 89,251 0 0 $19.08 Salt Lake City 1,710 12,663,227 587,003 588,043 4.6% 174,935 0 0 $12.31 San Antonio 2,041 16,266,217 901,986 911,145 5.6% 185,792 0 0 $16.08 San Diego 3,143 24,357,905 1,330,914 1,352,102 5.6% 218,470 0 0 $21.93 San Francisco 2,111 24,164,426 862,531 932,946 3.9% (74,805) 0 0 $49.11 San Luis Obispo. 663 3,936,971 50,323 50,323 1.3% 28,887 0 0 $18.91 Santa Barbara/S. 262 1,457,275 41,707 41,707 2.9% 124,097 0 0 $11.44 Santa Cruz/Wats. 449 2,671,519 49,285 51,285 1.9% 8,516 0 0 $14.80 Savannah 905 4,956,809 126,823 129,226 2.6% 56,421 0 0 $14.64 Seattle/Puget S. 4,447 30,138,800 1,013,936 1,039,217 3.4% 359,014 0 0 $21.03 Shreveport/Boss. 649 6,504,561 804,366 807,366 12.4% 4,218 0 0 $11.84 South Bay/San J. 2,599 21,610,041 1,059,516 1,091,778 5.1% 161,147 0 0 $30.70 South Bend/Mish. 575 4,448,839 105,458 105,458 2.4% 68,008 0 0 $12.23 Southwest Flori. 1,474 8,811,119 588,649 588,649 6.7% 53,600 0 0 $12.92 Spokane 653 4,109,741 154,867 159,259 3.9% 10,519 0 0 $10.30 Springfield 298 2,240,183 114,371 114,371 5.1% 88,981 0 0 $10.86 St. Louis 3,195 30,717,507 2,202,497 2,202,497 7.2% 420,475 0 0 $14.12 Stockton/Modest. 1,264 8,870,055 582,800 585,179 6.6% 129,862 0 0 $13.74 Syracuse 1,009 9,225,932 647,577 647,577 7.0% 55,613 0 0 $10.66 Tallahassee 686 2,780,942 142,225 143,125 5.1% 12,174 0 0 $12.79 Tampa/St Peters. 8,129 49,815,744 3,033,114 3,055,992 6.1% 505,678 0 0 $15.81 Toledo 2,083 16,783,005 1,466,042 1,470,286 8.8% 78,900 0 0 $10.67 Tucson 1,207 5,213,642 316,856 316,856 6.1% 49,022 0 0 $14.96 Tulsa 1,786 13,311,321 637,746 650,273 4.9% 130,837 0 0 $12.57 Utica/Rome 355 3,017,891 86,136 86,136 2.9% 58,774 0 0 $10.27 Visalia/Porterv. 954 5,005,185 236,197 239,879 4.8% 59,038 0 0 $12.33 Washington 4,204 36,879,092 2,630,333 2,670,674 7.2% (228,168) 0 0 $26.72 West Michigan 4,028 28,845,387 1,858,188 1,861,188 6.5% 343,314 0 0 $10.03 Westchester/So. 4,987 44,288,172 3,234,330 3,258,530 7.4% 622,785 0 0 $20.80 Wichita 986 7,452,798 334,004 334,004 4.5% 56,262 0 0 $9.01 Wilmington 1,144 4,550,848 121,942 129,593 2.8% 43,625 0 0 $11.46 Yakima 173 965,306 55,301 55,301 5.7% (15,388) 0 0 $11.32 Youngstown/Warr 1,361 8,721,380 303,590 303,590 3.5% 178 0 0 $9.11 Totals 303,952 2,374,867,585 145,754,845 147,430,499 6.2% 16,833,870 6,301 0 $17.37 28 The CoStar Office Report 2016 CoStar Group, Inc.

Figures at a Glance Third Quarter 2016 National Total Office Market Statistics Third Quarter 2016 Existing Inventory Vacancy YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Albany/Schenect. 3,969 63,621,172 2,926,398 2,964,247 4.7% 963,347 55,410 230,468 $14.96 Albuquerque 3,021 37,054,415 2,919,524 2,993,502 8.1% 968,940 42,853 18,000 $15.36 Anchorage 673 14,489,930 715,354 758,241 5.2% (5,599) 16,000 0 $27.24 Asheville 1,257 12,278,344 354,100 376,522 3.1% 187,358 84,000 105,000 $15.76 Atlanta 15,865 303,579,442 35,157,292 36,776,617 12.1% 671,931 441,236 4,678,454 $21.78 Augusta/Richmon 1,692 13,632,244 1,064,431 1,083,194 7.9% 191,494 16,521 24,000 $12.79 Austin 4,567 95,664,921 7,231,569 7,863,017 8.2% 824,332 975,444 2,218,471 $32.77 Bakersfield 1,134 13,333,571 781,284 792,842 5.9% 140,426 67,600 58,600 $18.74 Baltimore 6,385 138,564,389 13,877,919 14,150,325 10.2% 769,938 713,990 2,134,276 $22.28 Baton Rouge 2,384 22,644,466 2,448,328 2,524,081 11.1% 85,053 81,958 242,992 $16.80 Beaumont/Port A. 800 8,159,409 399,293 399,293 4.9% 10,757 12,825 5,000 $13.91 Birmingham 3,891 58,190,326 6,293,912 6,603,931 11.3% (75,646) 38,048 426,940 $16.68 Boise City/Namp. 2,875 29,043,729 1,975,689 2,019,519 7.0% 320,091 74,413 693,680 $16.29 Boston 13,664 398,080,429 30,069,129 32,474,886 8.2% 3,904,662 2,830,353 5,091,348 $21.09 Bremerton/Silve. 497 4,951,592 352,474 363,620 7.3% 19,424 0 0 $17.38 Broward County 4,078 69,266,803 6,771,777 7,001,500 10.1% 1,032,770 348,256 884,521 $26.00 Brownsville/Har. 369 3,682,293 194,598 194,598 5.3% 89,267 25,072 0 $16.14 Buffalo/Niagara. 1,790 38,920,201 3,045,691 3,057,736 7.9% 493,994 75,000 64,000 $15.94 Charleston WV 985 12,573,957 1,041,775 1,053,610 8.4% (54,391) 0 35,400 $15.66 Charleston/N Ch. 3,035 27,699,101 1,683,450 1,738,939 6.3% 372,257 331,746 406,070 $20.39 Charlotte 5,496 102,328,997 8,064,107 8,480,177 8.3% 909,961 749,337 3,138,137 $22.70 Chattanooga 1,036 17,376,915 1,173,333 1,254,515 7.2% 341,913 2,246 40,000 $16.53 Chicago 13,585 468,704,237 59,280,316 62,355,893 13.3% (902,263) 1,653,370 6,444,176 $23.35 Cincinnati 5,183 97,614,058 9,757,997 9,829,190 10.1% 1,674,723 856,655 524,874 $16.08 Cleveland 7,189 145,560,230 16,638,987 16,805,617 11.5% 1,311,601 741,664 601,111 $17.18 Colorado Spring. 1,720 28,727,195 3,205,664 3,212,398 11.2% 65,364 0 22,640 $16.41 Columbia 2,797 32,142,891 2,125,252 2,236,282 7.0% 175,323 255,725 101,370 $15.75 Columbus 4,279 97,798,457 6,893,367 7,126,311 7.3% 847,159 770,673 1,524,555 $17.27 Columbus GA 1,003 9,449,721 610,036 614,443 6.5% (51,636) 81,896 11,480 $13.01 Corpus Christi 693 10,160,932 790,758 820,975 8.1% 167,587 85,384 151,000 $15.94 Dallas/Ft Worth 11,943 357,715,902 49,086,132 51,132,937 14.3% 3,412,245 4,663,536 11,802,715 $24.08 Davenport/Molin. 516 7,846,799 577,057 577,057 7.4% 255,453 0 42,000 $11.23 Dayton 3,034 43,028,353 5,774,455 5,868,507 13.6% 244,405 0 0 $14.48 Deltona/Daytona. 1,695 10,994,157 681,729 699,059 6.4% 198,451 8,074 76,000 $11.74 Denver 7,527 196,944,418 17,497,205 18,866,422 9.6% 1,446,904 1,138,038 5,180,281 $24.94 Des Moines 1,361 35,853,619 1,572,694 1,639,241 4.6% 534,032 45,400 453,883 $13.30 Detroit 9,428 197,945,705 24,575,365 24,823,183 12.5% 3,051,574 577,566 1,021,357 $18.80 Duluth 455 7,071,940 185,554 185,554 2.6% 299,391 225,000 0 $13.60 East Bay/Oaklan. 5,271 110,065,514 8,438,202 8,786,596 8.0% 571,607 96,016 487,700 $28.89 El Paso 2,448 21,888,886 1,536,463 1,546,779 7.1% (15,719) 60,000 232,502 $16.03 Erie 766 8,934,947 349,869 349,869 3.9% 13,670 0 0 $9.99 Evansville 779 11,147,700 703,266 703,266 6.3% 141,230 0 82,500 $11.33 Fayetteville 964 6,932,121 511,318 511,318 7.4% 86,793 0 27,568 $14.65 Fayetteville/Sp. 1,251 14,625,602 893,597 909,209 6.2% 754,749 219,051 253,500 $17.24 Fort Smith 509 4,580,854 115,749 115,749 2.5% 94,263 0 0 $10.77 Fort Wayne 1,101 17,074,048 1,116,794 1,145,348 6.7% 565,007 259,850 0 $13.65 Fresno 2,852 32,032,033 2,867,277 2,896,165 9.0% 450,958 42,339 20,776 $16.77 Green Bay 1,027 15,446,413 1,213,362 1,232,562 8.0% 291,923 13,950 5,000 $12.43 2016 CoStar Group, Inc. The CoStar Office Report 29

National Third Quarter 2016 Figures at a Glance Total Office Market Statistics Third Quarter 2016 YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Greensboro/Wins. 4,362 56,137,246 5,098,782 5,225,466 9.3% 605,395 105,883 54,579 $14.82 Greenville/Spar. 4,343 37,733,860 2,624,934 2,807,981 7.4% 474,791 249,266 376,074 $16.02 Hampton Roads 3,380 49,890,142 5,404,299 5,531,981 11.1% 319,633 151,278 250,080 $17.03 Hartford 5,774 94,902,519 7,863,439 8,088,938 8.5% 514,253 70,411 125,050 $18.83 Hawaii 1,230 33,813,549 1,545,093 1,594,145 4.7% 86 11,130 89,419 $27.46 Houston 7,104 304,382,325 39,915,461 44,825,225 14.7% 1,282,583 5,877,705 3,917,542 $27.69 Huntington/Ashl. 1,043 8,816,881 466,316 466,316 5.3% 83,662 0 20,000 $11.06 Huntsville 1,018 20,882,567 2,018,558 2,081,595 10.0% 502,491 82,236 6,000 $13.54 Indianapolis 5,503 101,947,131 7,110,424 7,427,321 7.3% 1,276,369 428,989 772,500 $17.22 Inland Empire (. 6,189 73,139,149 6,945,161 7,045,149 9.6% 531,972 241,043 432,702 $19.90 Jackson 1,637 23,417,396 1,400,937 1,426,269 6.1% 330,087 205,186 47,475 $16.00 Jacksonville (F. 4,467 63,056,288 5,994,753 6,193,504 9.8% 388,116 167,425 98,752 $18.50 Kansas City 4,426 115,776,530 10,307,151 10,788,784 9.3% 1,500,919 401,000 1,982,529 $18.07 Killeen/Temple/. 351 3,026,301 257,620 257,620 8.5% 3,333 8,284 0 $10.86 Kingsport/Brist. 627 7,207,828 490,386 490,386 6.8% 372,842 300,000 30,000 $12.41 Knoxville 2,913 33,448,634 2,083,213 2,165,332 6.5% 607,839 279,783 142,740 $14.99 Lafayette 621 8,108,943 412,938 424,903 5.2% 234,494 176,938 50,000 $15.11 Las Vegas 3,906 62,941,994 9,338,744 9,733,535 15.5% 50,181 194,458 616,697 $19.65 Lexington/Fayet. 1,262 18,722,375 1,574,730 1,625,810 8.7% 155,744 79,417 61,150 $15.97 Lincoln 781 15,929,656 561,290 568,814 3.6% 186,628 24,750 55,000 $13.27 Little Rock/N L. 2,454 33,900,498 1,552,282 1,590,379 4.7% 163,322 30,143 125,872 $15.15 Long Island (Ne. 10,312 178,110,266 12,115,211 12,605,007 7.1% 796,357 443,000 3,224,387 $28.56 Los Angeles 18,085 432,689,680 44,509,434 45,825,737 10.6% 3,298,216 1,735,549 3,595,692 $32.77 Louisville 3,597 55,238,901 4,774,775 4,878,989 8.8% (64,172) 219,100 239,115 $16.38 Lubbock 1,212 10,782,149 756,970 768,664 7.1% (29,293) 69,698 54,795 $14.11 Madison 1,478 33,057,325 1,795,029 1,855,214 5.6% 803,310 306,440 183,250 $15.06 McAllen/Edinbur. 598 7,502,364 440,993 440,993 5.9% 85,442 24,280 66,538 $15.27 Memphis 2,861 51,870,017 5,251,148 5,373,748 10.4% 182,162 61,942 1,375,000 $16.60 Miami-Dade Coun 4,356 100,777,231 9,689,544 9,937,315 9.9% 377,324 485,968 1,685,607 $32.78 Milwaukee 3,709 79,869,177 6,308,428 6,445,390 8.1% 1,543,456 702,864 1,789,500 $16.41 Minneapolis 6,103 191,267,280 13,905,540 14,330,448 7.5% 1,291,340 1,658,270 793,574 $19.22 Mobile 2,108 17,152,698 1,027,028 1,079,489 6.3% (30,245) 11,619 158,667 $13.00 Montgomery 1,315 15,973,445 1,041,312 1,070,468 6.7% 174,878 17,098 12,006 $13.61 Myrtle Beach/Co. 789 5,897,521 193,811 193,811 3.3% 16,308 4,000 8,330 $14.36 Nashville 4,416 79,427,755 3,209,759 3,405,925 4.3% 910,316 516,278 3,297,924 $24.49 New Orleans/Met. 3,196 47,942,139 3,677,452 3,782,959 7.9% 567,252 278,062 79,900 $17.04 New York City 3,768 558,378,987 42,163,835 45,934,309 8.2% (1,146,769) 1,864,627 13,507,005 $65.11 North Bay/Santa. 3,711 41,188,758 3,853,748 3,881,699 9.4% 350,910 222,600 14,000 $25.03 Northern New Je. 16,982 364,644,134 47,164,730 49,718,693 13.6% 1,480,839 1,173,798 1,356,664 $24.73 Ocala 619 4,523,947 339,266 356,942 7.9% 86,766 0 6,277 $12.63 Oklahoma City 4,364 58,427,825 4,422,110 4,471,208 7.7% 1,000,435 898,760 1,411,785 $16.03 Olympia 859 9,674,556 667,518 667,518 6.9% 194,121 16,700 0 $16.62 Omaha/Council B. 1,805 45,177,695 2,414,403 2,454,478 5.4% 685,692 253,832 233,459 $17.28 Orange County (. 6,066 154,039,098 13,325,571 13,785,777 8.9% 1,342,700 789,109 2,430,157 $27.73 Orlando 8,270 104,278,597 9,160,379 9,331,126 8.9% 1,807,296 388,246 537,120 $19.44 Palm Beach Coun. 2,808 55,149,066 6,244,693 6,360,512 11.5% 798,716 131,279 67,329 $27.82 Pensacola 1,992 14,295,430 756,380 756,380 5.3% 215,437 27,550 193,056 $15.09 Peoria 526 10,340,511 572,917 572,917 5.5% 85,598 0 0 $12.17 Existing Inventory Vacancy 30 The CoStar Office Report 2016 CoStar Group, Inc.

Figures at a Glance Third Quarter 2016 National Total Office Market Statistics Third Quarter 2016 Existing Inventory Vacancy YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Philadelphia 23,146 417,380,309 36,890,354 37,788,731 9.1% 2,702,068 1,075,621 3,350,498 $22.33 Phoenix 8,231 169,983,117 25,127,061 26,183,615 15.4% 2,932,406 1,898,905 2,047,897 $23.10 Pittsburgh 6,799 126,944,286 9,392,899 9,785,306 7.7% 1,323,970 393,894 411,643 $20.51 Port St Lucie/F. 987 9,785,238 866,072 868,443 8.9% 55,385 10,267 60,000 $15.72 Portland 5,283 99,132,940 6,918,019 7,204,958 7.3% 1,436,701 1,178,989 1,545,056 $23.49 Portland/South. 1,752 24,572,043 1,282,417 1,339,312 5.5% 247,309 41,852 0 $14.46 Providence 2,839 42,617,590 2,902,583 2,932,228 6.9% 594,600 180,213 187,437 $16.98 Raleigh/Durham 4,714 96,628,103 6,029,352 6,481,971 6.7% 1,311,483 539,447 2,603,002 $20.85 Reno/Sparks 1,611 19,022,980 2,088,085 2,139,246 11.2% 53,144 17,036 16,975 $17.57 Richmond VA 3,142 62,873,936 4,864,671 5,359,445 8.5% 65,659 198,319 547,534 $17.69 Roanoke 1,007 13,458,712 1,475,798 1,482,447 11.0% (201,342) 0 16,800 $14.19 Rochester 1,958 42,358,273 3,388,966 3,470,669 8.2% 273,424 175,180 233,000 $13.16 Sacramento 4,823 101,028,097 11,591,771 11,824,802 11.7% 621,729 96,430 307,460 $21.07 Salinas 824 8,200,837 655,457 663,147 8.1% 57,925 0 141,226 $20.82 Salt Lake City 4,668 97,289,185 5,229,681 5,925,247 6.1% 3,202,542 3,360,593 1,753,116 $19.57 San Antonio 3,719 74,296,047 7,282,559 7,417,588 10.0% 1,026,867 676,859 981,047 $20.45 San Diego 5,335 114,141,635 11,431,861 12,180,936 10.7% 1,119,464 374,626 365,867 $30.50 San Francisco 3,862 166,896,610 9,814,574 11,441,689 6.9% 1,742,583 1,826,731 5,190,787 $55.28 San Luis Obispo. 828 5,876,628 99,262 100,862 1.7% 41,410 0 75,369 $19.06 Santa Barbara/S. 1,428 12,079,877 340,030 355,334 2.9% 284,460 52,000 0 $20.25 Santa Cruz/Wats. 863 7,290,373 499,943 501,943 6.9% 154,521 0 0 $21.25 Savannah 1,439 11,466,924 577,444 584,906 5.1% 107,024 37,945 30,000 $16.86 Seattle/Puget S. 7,758 192,570,170 12,458,664 13,111,034 6.8% 3,502,911 1,138,326 7,972,967 $30.96 Shreveport/Boss. 775 10,813,614 1,251,976 1,265,028 11.7% 240,738 116,000 57,500 $12.34 South Bay/San J. 4,507 114,171,153 7,933,920 9,095,848 8.0% 1,186,789 2,163,316 10,090,399 $39.97 South Bend/Mish. 792 9,171,459 515,485 520,789 5.7% 234,894 0 0 $14.35 Southwest Flori. 3,225 32,814,486 2,812,582 2,841,263 8.7% 518,409 155,044 67,000 $16.17 Spokane 1,657 21,709,652 1,931,120 1,953,177 9.0% 266,457 91,000 0 $15.14 Springfield 731 8,719,120 542,005 559,229 6.4% 144,867 14,000 0 $13.47 St. Louis 5,515 130,911,572 11,962,277 12,253,621 9.4% 1,138,816 116,600 1,207,658 $18.06 Stockton/Modest. 1,939 20,461,153 1,588,953 1,601,489 7.8% 370,288 0 306,000 $14.59 Syracuse 2,102 35,449,243 2,864,759 2,920,198 8.2% 424,177 124,075 24,000 $14.30 Tallahassee 2,224 22,141,104 1,462,699 1,507,438 6.8% 298,342 18,346 80,695 $15.77 Tampa/St Peters. 13,198 150,241,439 12,408,948 12,757,105 8.5% 1,796,770 283,904 181,576 $20.07 Toledo 2,619 30,830,736 2,523,440 2,539,740 8.2% 476,233 201,655 220,400 $13.39 Tucson 2,495 25,330,381 2,885,955 2,918,046 11.5% 286,636 111,950 33,271 $18.68 Tulsa 2,696 51,756,687 5,081,714 5,156,263 10.0% 410,350 310,436 310,332 $14.74 Utica/Rome 622 8,833,985 391,747 391,747 4.4% 28,276 0 0 $10.61 Visalia/Porterv. 1,113 6,362,448 360,029 363,711 5.7% 102,875 3,900 6,144 $14.37 Washington 10,028 469,262,378 67,801,436 70,916,308 15.1% (265,353) 1,589,907 10,672,155 $35.19 West Michigan 6,174 79,938,353 5,689,483 5,719,131 7.2% 1,378,284 606,577 690,968 $12.83 Westchester/So. 7,696 172,548,238 20,133,396 20,621,871 12.0% 2,023,663 586,117 186,510 $28.12 Wichita 1,663 23,652,300 1,582,858 1,590,807 6.7% 147,642 0 198,400 $12.98 Wilmington 1,766 12,979,456 671,419 697,948 5.4% 199,124 28,454 178,482 $16.44 Yakima 595 4,360,830 184,139 184,139 4.2% 66,049 18,760 0 $11.44 Youngstown/Warr 1,808 15,117,480 763,080 763,080 5.0% 100,559 50,000 0 $10.13 Totals 521,091 10,743,752,919 1,012,839,330 1,058,841,846 9.9% 88,487,333 60,025,763 147,486,814 $23.97 2016 CoStar Group, Inc. The CoStar Office Report 31

National Third Quarter 2016 Figures at a Glance Class A Market Statistics Existing Inventory Third Quarter 2016, Grouped by CBD vs Suburban Vacancy YTD Net YTD Under Quoted Market # Bldgs Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates CBD 2,775 1,175,610,914 117,199,127 126,744,040 10.8% 7,073,722 8,493,594 46,950,465 $36.08 Suburban 15,197 2,228,949,803 264,949,759 283,735,081 12.7% 26,867,865 33,077,491 75,891,505 $28.07 Class A Totals 17,972 3,404,560,717 382,148,886 410,479,121 12.1% 33,941,587 41,571,085 122,841,970 $30.20 Class B Market Statistics Existing Inventory Third Quarter 2016, Grouped by CBD vs Suburban Vacancy YTD Net YTD Under Quoted Market # Bldgs Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates CBD 15,292 910,100,993 84,029,875 87,614,491 9.6% 1,523,762 2,100,258 2,071,970 $26.96 Suburban 183,875 4,054,223,624 400,905,724 413,317,735 10.2% 36,188,114 16,348,119 22,572,874 $20.39 Class B Totals 199,167 4,964,324,617 484,935,599 500,932,226 10.1% 37,711,876 18,448,377 24,644,844 $21.28 Class C Market Statistics Existing Inventory Third Quarter 2016, Grouped by CBD vs Suburban Vacancy YTD Net YTD Under Quoted Market # Bldgs Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates CBD 24,285 363,826,152 25,127,517 25,602,654 7.0% 359,368 0 0 $23.46 Suburban 279,667 2,011,041,433 120,627,328 121,827,845 6.1% 16,474,502 6,301 0 $16.51 Class C Totals 303,952 2,374,867,585 145,754,845 147,430,499 6.2% 16,833,870 6,301 0 $17.37 Class A&B Market Statistics Existing Inventory Third Quarter 2016, Grouped by CBD vs Suburban Vacancy YTD Net YTD Under Quoted Market # Bldgs Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates CBD 18,067 2,085,711,907 201,229,002 214,358,531 10.3% 8,597,484 10,593,852 49,022,435 $32.38 Suburban 199,072 6,283,173,427 665,855,483 697,052,816 11.1% 63,055,979 49,425,610 98,464,379 $23.37 Class A&B Totals 217,139 8,368,885,334 867,084,485 911,411,347 10.9% 71,653,463 60,019,462 147,486,814 $25.09 Class A,B&C Market Statistics Existing Inventory Third Quarter 2016, Grouped by CBD vs Suburban Vacancy YTD Net YTD Under Quoted Market # Bldgs Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates CBD 42,352 2,449,538,059 226,356,519 239,961,185 9.8% 8,956,852 10,593,852 49,022,435 $31.50 Suburban 478,739 8,294,214,860 786,482,811 818,880,661 9.9% 79,530,481 49,431,911 98,464,379 $22.30 Grand Totals 521,091 10,743,752,919 1,012,839,330 1,058,841,846 9.9% 88,487,333 60,025,763 147,486,814 $23.97 32 The CoStar Office Report 2016 CoStar Group, Inc.

Figures at a Glance Third Quarter 2016 National 2016 CoStar Group, Inc. The CoStar Office Report 33

National Third Quarter 2016 Leasing Activity Historical Rental Rates* Based on Full-Service Equivalent Rental Rates $35.00 Class A Class B Class C Total Market $30.00 Dollars/SF/Year $25.00 $20.00 $15.00 $10.00 2000 4q 2001 4q 2002 4q 2003 4q 2004 4q 2005 4q 2006 4q 2007 4q 2008 4q 2009 4q 2010 4q 2011 4q 2012 4q 2013 4q 2014 4q 2015 4q * Select markets included in this historical chart - see Methodology page. Vacancy by Available Space Type Percent of All Vacant Space in Direct vs. Sublet Direct 4% Sublet Vacancy by Class Percent of All Vacant Space by Class Class A 14% Class B Class C 47% 39% 96% Future Space Available Space Scheduled to be Available for Occupancy in the Future* 120.0 100.0 96.10 80.0 60.0 58.00 40.0 20.0 0.0 19.03 10.21 10.08 2.23 2016 4q 2017 1q 2017 2q 2017 3q 2017 4q 2018 1q * includes Under Construction Spaces 34 The CoStar Office Report 2016 CoStar Group, Inc.

Leasing Activity Third Quarter 2016 National Select Top Oce Leases Based on Leased Square Footage For Deals Signed in 2016 Building Market SF Qtr Tenant Name Tenant Rep Company Landlord Rep Company 1 55 Water St* New York City 900,027 1st McGraw Hill Financial, Inc. CBRE CBRE 2 1285 Avenue of the Americas* New York City 890,861 2nd UBS Group CBRE RXR Realty 3 10 Hudson Yards* New York City 694,000 3rd Coach, Inc. CBRE N/A 4 Leo Burnett Building* Chicago 642,545 2nd Leo Burnett Worldwide, Inc. Cushman & Wakeeld CBRE 5 Moett Gateway South Bay/San Jose 595,840 3rd Google CBRE Newmark Cornish & Carey 6 BHP Billiton Petroleum Houston 593,850 2nd BHP Billiton Petroleum Cushman & Wakeeld Transwestern 7 Verizon Headquarters* Dallas/Ft Worth 576,138 3rd Verizon N/A N/A 8 Randolph West Chicago 486,400 2nd McDonalds Corporation CBRE Sterling Bay Companies 9 Lakepointe Oce Park* Charlotte 470,000 2nd Belk Newmark Grubb Knight Frank N/A 10 3535 Colonnade Pky Birmingham 456,823 1st Southern Co. N/A J.H. Berry & Gilbert, Inc. 11 5 Giralda Farms Northern New Jersey 431,493 3rd Allergan JLL Newmark Grubb Knight Frank 12 Alexandria Technology Campus San Francisco 404,109 1st Verily N/A Direct Deal 13 Nationwide Building A Columbus 401,681 2nd Cardinal Health CBRE CBRE 14 Woodland Corporate Park* Indianapolis 387,308 2nd Interactive Intelligence Inc NAI Meridian LLC JLL 15 Skyport* South Bay/San Jose 356,310 2nd Qualcomm Atheros N/A Colliers International 16 Bell Works - Oce Northern New Jersey 350,000 3rd icims CBRE The Garibaldi Group 17 Two White Flint North* Washington 347,922 2nd Nuclear Regulatory Comm US N/A Lerner Enterprises 18 1670 Broadway* Denver 346,081 2nd TIAA N/A Cushman & Wakeeld 19 Cross Point 1 Boston 342,288 2nd Kronos Incorporated Cushman & Wakeeld CBRE - New England 20 Metrotech Center - North Bldg* Long Island (New York) 339,993 2nd New York City Fire Department Direct Deal Direct Deal 21 Two Riverfront Plaza* Northern New Jersey 339,178 2nd Panasonic Corp Of North America N/A N/A 22 Two Liberty Place* Philadelphia 330,540 3rd CIGNA Health Management, Inc. N/A CBRE 23 Three Constitution Square Washington 316,869 1st The United States Department of Justice CBRE Cushman & Wakeeld 24 One Potomac Yard - South Tower* Washington 312,460 1st U.S. Environmental Protection Agency N/A N/A 25 CityPlace 2 Houston 303,137 2nd American Bureau of Shipping Cushman & Wakeeld JLL; Crimson Services, LLC 26 Pentagon City Two* Washington 300,749 2nd Transportation Security Administration Direct Deal Brookeld Oce Properties, Inc. 27 Coda - Coda Atlanta 289,000 1st Georgia Tech Board of Regents of the University Direct Deal 28 The Atlantic at City Walk Hampton Roads 287,857 1st ADP N/A CBRE Hampton Roads 29 Urban Union Seattle/Puget Sound 285,000 1st Amazon.com, Inc. N/A Broderick Group, Inc. 30 151 N Franklin St Chicago 272,569 1st CNA Savills Studley John Buck Company 31 One Boston Place* Boston 269,762 1st Bank of New York Mellon JLL CBRE - New England 32 10455 Mill Run Cir* Baltimore 269,271 1st CareFirst BlueCross BlueShield JLL N/A 33 Pentagon City One* Washington 251,167 2nd Transportation Security Administration Direct Deal Brookeld Oce Properties, Inc. 34 Three Gotham Center Long Island (New York) 250,000 2nd WeWork Direct Deal Direct Deal 35 111 Monument Cir Indianapolis 247,100 2nd Salesforce N/A CBRE 36 609 Main at Texas Houston 237,708 3rd United Airlines CBRE Colvill Oce Properties 37 350 Bush St San Francisco 236,942 3rd Twitch N/A CBRE 38 Renaissance Tower Dallas/Ft Worth 229,000 3rd Environmental Protection Agency N/A CBRE 39 WestMark One Richmond VA 227,036 1st Suntrust N/A RER Financial Group, LLC 40 Signet Jewelers Dallas/Ft Worth 225,000 2nd Signet Jewelers Newmark Grubb Knight Frank N/A * Renewal 2016 CoStar Group, Inc. The CoStar Office Report 35

National Third Quarter 2016 Sales Activity The Optimist Sales Index Average of Two Highest Price/SF's and Two Lowest Cap Rates From Each Region 8.0% Cap Rate Price/SF $470 Cap Rate Percentage 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% $450 $430 $410 $390 $370 $350 $330 $310 Dollars/SF 1.0% 2013 3q 2014 3q 2015 3q $290 Source: CoStar COMPS Sales Volume & Price Sales Analysis by Building Size Based on Office Building Sales of 15,000 SF and Larger Based on Office Building Sales From July 2015 - June 2016 $35,000 Sales Volume Price/SF $350 Bldg Size # RBA $ Volume Price/SF Cap Rate Millions of Sales Volume Dollars $30,000 $25,000 $20,000 $15,000 $10,000 $300 $250 $200 $150 $100 Price/SF < 50,000 SF 7,057 83,603,973 $16,606,410,809 $ 198.63 7.33% 50K-249K SF 250K-499K SF 1,294 142,148,026 $30,212,975,794 $ 212.55 6.73% 230 79,201,739 $22,978,298,048 $ 290.12 5.28% $5,000 $50 $0 $0 >500K SF 116 96,933,635 $35,164,258,907 $ 362.77 4.17% 2013 1q 2014 1q 2015 1q 2016 1q Source: CoStar COMPS Source: CoStar COMPS Historical Price/SF Average Based on Office Building Sales of 15,000 SF and Larger Historical Cap Rate Average Based on Office Building Sales of 15,000 SF and Larger $310 8.5% $290 Dollars per SF $270 $250 $230 $210 Cap Rate Percentage 8.0% 7.5% 7.0% $190 6.5% $170 6.0% 2013 1q 2014 2015 1q 2016 2013 1q 2014 2015 1q 2016 Source: CoStar COMPS Source: CoStar COMPS 36 The CoStar Office Report 2016 CoStar Group, Inc.

Third Quarter 2016 National 2016 CoStar Group, Inc. The CoStar Office Report 37 Sales Activity