Market Report. Northern Virginia 3rd Quarter cushmanwakefield.com

Market Report Northern Virginia 3rd Quarter 2016 cushmanwakefield.com

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

Washington, DC Metropolitan Area We have the jobs...now where is the Absorption? The Washington, DC politan region s (DC Metro) economy continued to register a staggering level of job growth through the third quarter of 2016. As of September 2016, year-over-year employment growth remained well above historical averages, with the DC Metro economy creating 85,200 net new nonfarm payrolls. That is the fourth highest job creation figure in the nation after the New York, Dallas and Los Angeles politan regions. On a year-over-year percentage basis, job growth in the DC Metro area is growing faster than in the New York, Los Angeles, Chicago, San Francisco and Boston politan regions. Moreover, officeusing employment has continued to expand, with over 35,000 jobs created in office-using sectors since September of 2015, a level only slightly below the typical combined annual office and nonoffice-using job creation figures in the Washington, DC region. Indeed, one has to look back to mid-2010, prior to the time when devastating effects of sequestration took hold in the region, to find similar levels of office-using job creation. As has been the case throughout 2016, Professional and Business Services employment is leading job growth among all industry sectors, with 29,000 jobs added to payrolls from September 2015 to September 2016. In addition, positive job growth the likes of which the region hasn t seen since early 2011 has been particularly evident in the federal government sector which added nearly 6,400 new payrolls from September 2015 to September 2016. While the narrative about job growth as well as the midterm forecast for continued strong employment growth is compelling, the headline may be that office market statistics are mixed. On the one hand, vacancy appears to have peaked and is slowly declining in the Washington, DC jurisdictions: the District of Columbia, Northern Virginia, and Suburban Maryland. Regionally, vacancy was 17.8% at the end of the third quarter of 2016, down ever so slightly from 17.9 % a year ago. But absorption is facing challenges. Current space requirements per each job created in the Washington, DC office market are much less than in previous cycles, and that is having an impact on absorption levels. From 2002 to 2008, an average 270 square feet (SF) of office space was absorbed for every office job created regionally; from 2009 through 2016, that figure declined to 60 SF. Furthermore, the contentious election season seems to have put a damper on new leasing activity. Tenants have taken a wait and see approach before executing new leases; that has resulted in activity falling regionally to a year-to-date total of 9.4 million square feet (MSF) below the 10-year average of 11.2 MSF typically registered in the first three quarters of a year. The good news is that there are some signs that the pendulum is swinging back from the extreme efficiency demands that caused absorption to shrink in recent quarters, particularly in newer, highquality product in amenitized, transit-served locations. In the urban core markets, two large law firms Venable LLP and Arnold & Porter both exercised expansion rights shortly after or in advance of occupying their newly constructed spaces. There is also evidence that federal contractors are behaving similarly in suburban markets: CSC has opted for another floor at 1775 Tysons Boulevard, adding an additional 30,000 SF to its new Americas headquarters. With continued growth in the economy, the improving (albeit slowly) market conditions continue to keep investors bullish on the outlook for the DC Metro region. Office sales activity surged in the third quarter of 2016 by $2.1 billion, bringing the year-to-date total to $4.9 billion. As has been the case throughout 2016, the core downtown assets that brought downtown pricing to historic highs in 2014 and 2015 remain scarce as longer term holders are keeping these projects off the market. In turn, overall sales volume has declined, with more suburban and value-add projects in the pipeline for sale. WASHINGTON, DC METRO Economic Indicators Q3 15 Q3 16 DC Metro Employment 3.18M 3.26M DC Metro Unemployment 4.3% 3.9% U.S. Unemployment 5.1% 5.0% Market Indicators Q3 15 Q3 16 Overall 17.9% 17.8% Net Absorption 289K 544K Under Construction 5.1M 8.4M Deliveries 1.2M 2.5M Average (FS) $35.03 $38.13 Net Absorption/ 4Q TRAILING AVERAGE 2.0 1.0 0.0 Washington, DC Metropolitan Area NET ABSORPTION - DELIVERIES - VACANCY 12-Month Forecast 12-Month Forecast -1.0 $34.0 2010 2011 2012 2013 2014 2015 2016 MSF 10.0 8.0 6.0 4.0 2.0 0.0-2.0-4.0-6.0 Net Absorption, MSF, $ PSF 05 06 07 08 09 10 11 12 13 14 15 16 Net Absorption Deliveries Rate 20% 16% 12% 8% 4% 0% $39.0 $38.5 $38.0 $37.5 $37.0 $36.5 $36.0 $35.5 $35.0 $34.5 Rate cushmanwakefield.com 3

Northern Virginia Economy Metropolitan Washington, DC continued to post strong job growth, with the region adding 85,200 net new jobs in the last 12 months as of September 2016. This figure is more than double the historical average, with the region registering the eighth-lowest unemployment rate of the 50 largest politan areas in the U.S. Northern Virginia (NoVA) accounted for 32,100 of the regional total led by the Professional and Business Services sector adding 17,860 jobs year-over-year. Market Overview Job growth, typically a leading economic indicator, finally appeared to be having an impact on the Northern Virginia real estate market, as office space has experienced 494,676 square feet (SF) of positive year-to-date absorption. Class A product has done particularly well, accounting for 1.1 million square feet (MSF) of office-space absorption. The largest move of the quarter was that of the U.S. Marshals Service, which vacated 1750 Crystal Drive (due to undergo extensive renovations) to occupy 370,000 SF at 1215 South Clark Street. Overall vacancy closed the third quarter of 2016 at 21.1%, unchanged from one year ago. Direct asking rental rates in NoVA stood at $32.24 per square foot, a 4.0% decline from the third quarter 2015. This decline is due to both strong leasing of premium space, and lowering of rents in commodity buildings in an environment of elevated vacancy. Proximity to transit and amenities continues to drive decision making for the largest users in the NoVA market. Applied Predictive Technologies signed the largest lease of third quarter 2016, taking 98,800 SF at 4250 North Fairfax Drive in Ballston. Tysons was home to the next two largest deals, with WeWork committing to 92,500 SF at 1775 Tysons Boulevard, and M.C. Dean signing for 85,600 SF at 1765 Greensboro Station Drive. Four office buildings broke ground in the third quarter, each with one prelease in tow: 2311 Wilson Boulevard (Opower), 8350 Broad Street (TEGNA), 1041 Electric Avenue (Navy Federal Credit Union [NFCU]), and 4097 Monument Corner Drive (Apple Federal Credit Union). Opower signed a 44,900-SF prelease in the first quarter and TEGNA a 70,063-SF prelease in the second quarter. NFCU, the largest credit union in the nation, will occupy the entirety of its 235,000-SF campus expansion building in Vienna. Outlook Buoyed by a handful of massive projects such as the CEB Tower and the National Science Foundation headquarters, new construction is at its highest point in almost 10 years. However, continued growth in high-wage professional jobs and companies that continue to show a preference for new and high-quality office options should continue to drive demand into new construction. With a stabilizing federal spending environment and strong growth in the private sector, the Northern Virginia market is poised to continue tracking away from historically high vacancy. Market Indicators Net Absorption/ 4Q TRAILING AVERAGE 400 200 0-200 -400-600 -800 2011 2012 2013 2014 2015 2016 Q3 Overall Net Absorption, MSF 3Q 15 3Q 16 Overall 21.1% 21.1% Net Absorption 401K 495K Under Construction 3.2M 4.1M Deliveries 404K 636K Average $33.21 $31.88 24% 22% 20% 18% 16% 14% Large Blocks of Contiguous Space, $ PSF 12-Month Forecast $35.00 $33.00 $31.00 $29.00 $27.00 $25.00 Historical Average = 17% 12% 2011 2012 2013 2014 2015 2016 Q3 Loudoun County Route 28 South Springfield/Newington 50/66 Reston/Herndon Tysons Corner Arlington Alexandria 0 20 40 60 80 # of Blocks 25-50k SF 50-100k SF 100-150k SF 150-200k SF 200k+ SF Cushman & Wakefield 4

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

Top Transactions Key Lease Transactions 3Q 2016 PROPERTY SF TENANT TRANSACTION TYPE SUBMARKET 4250 North Fairfax Drive 98,800 Applied Predictive Technologies Relocation Ballston 1775 Tysons Boulevard 92,517 WeWork New Lease Tysons 1765 Greensboro Place 85,859 M.C. Dean Relocation Tysons Key Sales Transactions 3Q 2016 PROPERTY SF SELLER/BUYER PRICE SUBMARKET Republic Park #1-8 532,041 Liberty Property Trust/MRP Realty $97,000,000 / $183 Reston/Herndon 1 Dulles Corridor 215,000 Westbrook Partners/Rosenthal Properties & Wafra $67,600,000 / $314 Reston/Herndon Independence Center 275,000 Carr Properties/Tritower Financial $60,500,000 / $221 Route 28 South/Chantilly Northern Virginia Office Market Net Absorption - Deliveries -, Third Quarter 2016 Northern Virginia Office Market Inventory and by Submarket, Third Quarter 2016 Square Feet (Millions) 7 5 3 1 25% 20% 15% 10% Rate MSF 30 25 20 15 10 25% 20% 15% 10% Rate -1 5% 5 5% -3 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 0% 0 AlexandriaRB CorridorCrystal City TysonsReston/Herndon50/66Route 28 S/Chantilly Loudoun 0% New Deliveries Net Absorption Rate Leased Vacant Rate Cushman & Wakefield 6

Alexandria Market Indicators *Arrows = Current Qtr Trend 23.4% Net Absorption 52,900 SF Under Construction 720,000 SF Deliveries 0 SF $31.05 FS The Old Town market continued to improve in the third quarter, as vacancy hit 8.4%, the submarket s lowest vacancy in over five years. As a whole, Alexandria has registered 124,100 SF of positive year-to-date absorption, mainly due to demand from Old Town. Rental rates in the I-395 corridor and Huntington/Eisenhower submarkets have remained largely unchanged over the past several years, while rental rates in Old Town have increased 6% over the past four quarters, ending the third quarter at $35.91 PSF, as this submarket continues to tighten. Alexandria posted a large win in the third quarter, convincing (with the help of incentives) The Motley Fool to renew for 113,000 SF at 2000 Duke Street. The media and finance company had conducted a multi-jurisdictional search before deciding to stay in the building it has occupied since 2005. A condition of the incentives grant includes a provision for the company to add an extra 60 employees on top of its existing 280. Other significant leases of the third quarter included Virginia Hospital Center s 17,784-SF new lease at 2800 Shirlington Road and Cotton & Company s 8,346-SF sublease at 635 Slaters Lane. Square Feet, 000 s Net Absorption Deliveries 800 600 400 200 0-200 -400-600 06 07 08 09 10 11 12 13 14 15 YTD 16 30% 25% 20% 15% 10% Net Absorption Deliveries Rate Old Town Rate New Leasing Activity 1.20 1.00 5% 0% Rate The 335,000-SF Carlyle Tower is in the throes of comprehensive renovations, as it seeks to reposition itself to better compete in a competitive Class A market. MSF 0.80 0.60 0.40 0.20 0.00 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Q1 Q2 Q3 Q4 $39 Outlook The only building currently under construction in Alexandria is the National Science Foundation s (NSF) future 700,000-SF headquarters at 2415 Eisenhower Avenue. With construction due to wrap up in early 2017, the market should soon discover how many contractors will be tailing the agency and its large grants. Some firms working on moonshot technologies may have an extra incentive being near both the Patent and Trademark Office and the NSF. Full Service PSF $37 $35 $33 $31 $29 $27 $25 2011 2012 2013 2014 2015 2016 Class A Class B cushmanwakefield.com 7

RB Corridor Market Indicators *Arrows = Current Qtr Trend 22.5% Net Absorption 97,800 SF Under Construction 862,800 SF Deliveries 0 SF $40.87 FS in the RB Corridor decreased to 22.5% at the end of the third quarter of 2016, its lowest point since the second quarter of 2014. However, this rate is still above the 5-year average of 19.4% and the 10-year average of 13.6%. The RB Corridor recorded 97,800 SF of absorption in the third quarter, bringing the year-to-date total to 156,000 SF. Ballston accounted for all of the corridor s positive absorption, as Amazon moved into 50,000 SF at 4250 North Fairfax Drive, CliftonLarsonAllen moved into 24,000 SF at 901 North Glebe Road, Accenture occupied a 20,000 SF sublet at 4075 Wilson Boulevard, and the Department of Homeland Security took possession of 21,000 SF at 1525 Wilson Boulevard. Direct rental rates declined to $40.86 PSF at the end of the third quarter, their lowest rate in five years. High-end space was taken off the market in Ballston and owners of commodity buildings decreased rents in this extended period of high vacancy. The largest new lease of the quarter was in Ballston: Applied Predictive Technologies signed for 98,800 SF at 4250 North Fairfax Drive. A slate of large- and medium-sized deals in the third quarter included Regus Spaces concept signing of 45,000 SF in the Artisphere at 1101 Wilson Boulevard, technology company Snagajob taking 31,200 SF of sublease space at 1919 North Lynn Street, and the National Association of Chemical Distributors relocating into 31,000 SF on the top floors of 1515 North Courthouse Road. The largest renewal of the quarter was Sinclair Television Group s 15-year lease extension (to commence in 2019) of 100,000 SF at 1100 and 1000 Wilson Boulevard. The only significant trade of the quarter occurred in Ballston. Clark Enterprises sold 4001 North Fairfax Drive s 190,000 SF to Penzance for $62,500,000 ($329/SF). 2311 Wilson Boulevard has entered into construction, as each of the Corridor s three submarkets now has one building being built. Net Absorption Deliveries Square Feet, 000 s MSF 1,000 800 600 400 200 0-200 -400-600 -800 06 07 08 09 10 11 12 13 14 15 YTD 16 Net Absorption Deliveries Rate New Leasing Activity 25% 20% 15% 10% 5% 0% 1.60 1.40 1.20 1.00 0.80 0.60 0.40 0.20 0.00 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Q1 Q2 Q3 Q4 Rate Outlook Year-to-date leasing activity in the RB Corridor ended the third quarter of 2016 at 1.01 MSF, 22% higher than 2015 s annual total, and equal to 2014 s total. This is not a large jump in leasing activity, but is a positive sign for the corridor which has faced headwinds for several years. Look for association and non-profit leasing to increase in the medium term, as a new administration begins to establish its policies and budget. Full Service PSF $50 $48 $46 $44 $42 $40 $38 $36 $34 $32 2011 2012 2013 2014 2015 2016 Class A Class B Cushman & Wakefield 8

Crystal City/Pentagon City Market Indicators *Arrows = Current Qtr Trend 22.3% Net Absorption 140,300 SF Under Construction 0 SF Deliveries 0 SF $37.43 FS Move-ins and move-outs in the Crystal City submarket continue to offset one another. has hovered in the 20%-23% range over the past four years and ended the third quarter at 21.5%. Direct average asking rents continue to contract from the high of $41.00 PSF in 2013 to the current $37.43 PSF. Rents have declined 2.5% over the past four quarters, due primarily to lowering of rents in Class B buildings. The largest move of the quarter was that of the U.S. Marshals Service, which vacated 1750 Crystal Drive (due to undergo extensive renovations) to occupy 370,000 SF at 1215 South Clark Street. Other positive absorption resulted from Chemonics International and NaAli I Consulting moving into 54,000 SF and 9,000 SF, respectively, at 251 18th Street. Negative absorption in both the first and second quarters of 2016 slowed as a result of the US Marshalls expansion this quarter, making year-to-date absorption a slightly negative 16,738 SF. The largest new lease of the third quarter was that of the Metropolitan Washington Airports Authority which signed for 74,248 SF of former Environmental Protection Agency space at 2733 Crystal Drive, as the agency relocated out of Reagan National Airport. Contractor signings in the third quarter included Lockheed Martin s renewal of 141,761 SF at 2121 Crystal Drive, American Systems renewal for 21,880 SF at 1401 S Clark Street, and C3 Systems sublease of 18,322 SF at 2900 Crystal Drive. Leasing activity, at 329,473 SF year-to-date, is on track to outpace the 2014 figure of 387,748 SF but total below the 2015 figure of 787,968 SF. Square Feet, 000 s MSF Net Absorption Deliveries 1,000 500 0-500 -1,000-1,500-2,000 06 07 08 09 10 11 12 13 14 15 YTD 16 Net Absorption Deliveries Rate New Leasing Activity 30% 25% 20% 15% 10% 5% 0% 2.50 2.00 1.50 1.00 0.50 0.00 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Rate Q1 Q2 Q3 Q4 $44 $42 Outlook The potential merger between Vornado Realty Trust and JBG would bring fresh eyes and seasoned development professionals to a recovering market with an aging inventory. Recently delivered multifamily buildings such as The Bartlett and m.flats bring the submarket closer to its mixed-use vision. Full Service PSF $40 $38 $36 $34 $32 2011 2012 2013 2014 2015 2016 Class A Class B cushmanwakefield.com 9

Tysons Corner Market Indicators *Arrows = Current Qtr Trend 20.7% Net Absorption 118,500 SF Under Construction 1,751,800 SF Deliveries 475,800 SF $31.93 FS Tysons continues to be a hub of activity as the submarket registered 1.0 MSF of leasing activity during the first three quarters of 2016, accounting for 25% of the total activity in Northern Virginia (NoVA) and more than any other submarket. Tysons also claimed three of NoVA s top four leases in the third quarter: WeWork for 92,517 SF at 1775 Tysons Boulevard, the U.S. Customs and Border Protection agency for 89,834 SF at 7799 Leesburg Pike, and M.C. Dean for 85,859 SF at 1765 Greensboro Station Place. The largest renewals of the quarter were those of NetApp for 66,877 SF at 1921 Gallows Road and Smith Pachter & McWhorter for 15,742 SF at 8000 Towers Crescent Drive. Tysons was home to a number of large move-ins in the third quarter, resulting in 118,512 SF of net positive absorption. The largest move-outs were those of Morgan Lewis and Regus vacating 42,000 SF and 23,000 SF, respectively, at 1600 Tysons Boulevard; Watt Tieder leaving 65,000 SF at 8405 Greensboro Drive; and Palantir vacating a floor at 1660 International Drive. These large move-outs were offset by significant move-ins: Capital One occupied 137,000 SF at Silverline Center, Watt Tieder moved into 33,000 SF at 1765 Greensboro Station Place, Columbia College occupied 26,000 SF at 8620 Westwood Drive, and Alarm.com again expanded by 23,000 SF at 8281 Greensboro Drive. Square Feet, 000 s Net Absorption Deliveries 1,000 800 600 400 200 0-200 -400-600 -800 06 07 08 09 10 11 12 13 14 15 YTD 16 Net Absorption Deliveries Rate New Leasing Activity 3.50 3.00 25% 20% 15% 10% 5% 0% Rate 8350 Broad Street, along with accompanying multifamily and retail aspects of the Boro s first phase, started construction in the third quarter. TEGNA signed a prelease for 70,000 SF on the top floors of the 20-story building, accounting for 16% of the building s eventual 436,800-SF footprint. MSF 2.50 2.00 1.50 Beacon Capital Partners sold American Center East and West (8300/8330 Boone Boulevard) to Banyan Street Capital, based in Miami. The combined 333,000 SF sold for $68.5M ($206/SF) 1.00 0.50 0.00 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Q1 Q2 Q3 Q4 Outlook There is currently 1.75 MSF under construction in Tysons, 42% of the total in Northern Virginia. Two of the buildings under construction Capital One Tower and MITRE IV are build-to-suit projects which will be fully occupied upon delivery. The market has successfully absorbed a handful of new and renovated speculative buildings over the past several years: 7900 Tysons Boulevard, 7900 Westpark Drive, 7940 Jones Branch Drive, and 1775 Tysons Boulevard which is now 65% leased after signing WeWork. With over two years to go before delivery of The Boro s 8350 Broad Street, the small amount of remaining new space in these delivered buildings have a buffer before competing new product comes online. Full Service PSF $50 $45 $40 $35 $30 $25 2011 2012 2013 2014 2015 2016 Class A Class B Cushman & Wakefield 10

Reston/Herndon Market Indicators *Arrows = Current Qtr Trend 16.6% Net Absorption (31,500) SF Under Construction 354,900 SF Deliveries 0 SF $28.88 FS in the Reston/Herndon submarket was 16.6% at the end of the third quarter, down 10 basis points (BP) from the second quarter and remains below the 5-year average of 17.1%. After hitting a 5-year high in the second quarter, direct asking rental rates also ticked downward to settle at $28.88 PSF at the end of the third quarter. The market experienced low occupier activity in the third quarter, as negative absorption of 31,500 SF pushed year-to-date absorption to a negative 130,518 SF. Comcast vacated 29,000 SF at 12801 Worldgate Drive, Qinetiq/Vencore moved out of 25,000 SF at 11091 Sunset Hills Road, National Rural Telecommunications Cooperative gave back one 24,000 SF floor at 2121 Cooperative Way, and Software AG vacated 24,000 SF at 11700 Plaza America Drive. The only significant move-in of the quarter was that of DPR Construction into 21,000 SF at 11109 Sunset Hills Road, followed by a slate of smaller occupancies. Northern Virginia s largest renewal of the third quarter took place in Reston/Herndon as Boeing recommitted to 168,200 SF at 460 Herndon Parkway. The Federal Home Loan Banks (Office of Finance) renewed for 26,000 SF at Reston Town Center s 1818 Library Street. The largest new leases included CDW signing for 32,500 SF at 2001 Edmund Halley Drive, followed by Personify for 13,900 SF at 13450 Sunrise Valley Drive and V-Brick for 13,300 SF at 607 Herndon Parkway. The submarket experienced its lowest quarterly leasing volume in over three years, but year-todate leasing activity, at 0.8 MSF, puts the submarket in second place behind Tysons 1.0 MSF of activity. Comstock Partners 1900 Reston Metro Plaza, to be the submarket s newest office building since 2009, does not yet have any leases signed midpoint in its construction. If its 368,000 SF were to deliver fully vacant in Q3 2017, this would increase Reston/Herndon s vacancy rate by 150 BP. The largest portfolio sale of the quarter was that of Liberty Park, consisting of eight properties on Dulles Technology Drive in Herndon. Liberty Property Trust sold the combined 532,041 SF for $97M ($182/SF) to Walton Street Capital. Westbrook Partners sold 10740 Parkridge Boulevard to Rosenthal Properties and Wafra Investment Advisory Group. The 215,716-SF building, along with an adjacent land parcel, sold for $68.1M ($316/SF). Square Feet, 000 s MSF Net Absorption Deliveries 2,500 2,000 1,500 1,000 500 0-500 06 07 08 09 10 11 12 13 14 15 YTD 16 New Leasing Activity 3.00 2.50 2.00 1.50 1.00 0.50 0.00 $32 Net Absorption Deliveries Rate 25% 20% 15% 10% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Q1 Q2 Q3 Q4 5% 0% Rate Outlook Several redevelopment plans moving through the pipeline will further increase the large number of approved and pending developments along the Toll Road. General Dynamics 357,000 SF secure campus has received approval from the Fairfax Board of Supervisors, Vornado s 1.43 MSF of proposed mixed use development at Commerce Executive Center gained planning commission support, and NVR s plan to construct a mix of 383 multi-family units and townhomes at Woodland Park also obtained planning commission support. Full Service PSF $30 $28 $26 $24 $22 $20 2011 2012 2013 2014 2015 2016 Class A Class B cushmanwakefield.com 11

50/66 Market Indicators *Arrows = Current Qtr Trend 21.4% Net Absorption (201,300) SF Under Construction 385,000 SF Deliveries 0 SF $24.83 FS Merrifield/Route 50 Leasing activity in the Merrifield/Route 50 submarket has been steady over the past two years, averaging 58,500 SF per quarter. The most significant deal of the third quarter was Inova Healthcare Services signing of a 52,200-SF renewal and 41,900- SF expansion at 8111 Gatehouse Road. ticked upward from 17.1% in the second quarter of the year to 19.0% in the third, as two large tenants vacated the submarket for Class A buildings in Tysons: CSC moved out of 80,000 SF at 8613 Lee Highway and Reed Smith vacated 61,000 SF at 3110 Fairview Park Drive. Apple Federal Credit Union has begun construction of its new 150,000- SF headquarters expansion at 4097 Monument Corner Drive. It plans on occupying a majority of the building, with Peterson Companies agreeing to take about half of the remaining space. Direct asking rental rates currently stand at $30.31 PSF, and have remained largely unchanged over the past several years. Square Feet, 000 s Net Absorption Deliveries 400 200 0-200 -400-600 -800 06 07 08 09 10 11 12 13 14 15 Q1 16 New Leasing Activity Net Absorption Deliveries Rate 25% 20% 15% 10% 5% 0% Rate Fairfax/Oakton/Vienna in the Fairfax/Oakton/Vienna submarket rose to its highest level in over 15 years, ending the third quarter at 23.1%, as the submarket has become largely reliant on renewals of small professional services firms. Rental rates in the submarket, at $25.20 PSF, trail behind only those of the Loudoun County and Annandale submarkets. Navy Federal Credit Union (NFCU), the largest credit union in the country, broke ground on its 235,000-SF campus expansion at 1041 Electric Avenue. Although the owner-occupied campus does not have a direct impact on the competitive office market, expansion by this financial firm positively affects talent makeup and income in the vicinity. This building will be an addition to the existing 901,000-SF headquarters building across the street. MSF 2.00 1.80 1.60 1.40 1.20 1.00 0.80 0.60 0.40 0.20 0.00 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Q1 Q2 Q3 Q4 Outlook Although ridership is down and SafeTrack work this year has been largely focused on the orange line, tenant preference for Metro-accessible buildings and other associated amenities continues strong. As several buildings along Prosperity Avenue and the Gallows Road corridor between the Mosaic District and Dunn Loring-Merrifield Metro stop approach full occupancy, building parks such as WillowWood Plaza and Fairview Park may begin to attract tenants in tertiary submarkets such as Fair Lakes and the I-395 Corridor. Full Service PSF $34 $32 $30 $28 $26 $24 $22 2011 2012 2013 2014 2015 2016 Merrifield/Route 50 Fairfax/Oakton/Vienna Cushman & Wakefield 12

Route 28 South/Chantilly Market Indicators *Arrows = Current Qtr Trend 21.6% Net Absorption 247,000 SF Under Construction 0 SF Deliveries 150,000 SF $25.91 FS The Route 28 South submarket experienced a large quarterover-quarter drop in vacancy, from 24.1% in the second quarter to 21.6% at the third quarter, as the GSA occupied its second 160,000-SF built-to-suit building on Stonecroft Boulevard, and Deloitte and the American Registry for Internet Numbers (ARIN) moved into 27,000 SF and 24,000 SF, respectively, at 15049 Conference Center Drive. Class A vacancy declined to 19.7%, its lowest point since the third quarter of 2014. After declining from the $28 PSF range to the $26 PSF range between 2012 and 2014, direct asking rental rates have remained relatively steady over the past two years. Absorption in the third quarter was 246,981 SF, bringing the year-to-date total to 464,081 SF, double that of the next-highest submarket, Tysons. Absorption should slow moving forward, as the submarket experienced almost no new leasing activity this quarter. However, a stabilizing federal spending environment, strong private-sector job growth, and no new construction starts should keep an upward cap on vacancy rates. Renewals included American Systems Corporation s 57,600 SF lease extension at 14151 Park Meadow Drive and Aetna s 24,800 SF lease extension at 14155 Newbrook Drive. Net Absorption Deliveries Square Feet, 000 s 1,200 1,000 800 600 400 200 0-200 -400-600 06 07 08 09 10 11 12 13 14 15 YTD 16 New Leasing Activity 1.20 1.00 0.80 Net Absorption Deliveries Rate 30% 25% 20% 15% 10% 5% 0% Rate Capital markets transactions in the third quarter included Carr Properties sale of its 274,223-SF property at 15036 Conference Center Drive for $60.5M ($221/SF) to Tritower Financial Group, based in Boston. The building is greater than 80% leased to a variety of federal contractors. The 146,444-SF property at 4795 Meadow Wood Lane sold for $9.0M ($62/SF) from LNR Partners to the American Armed Forces Mutual Aid Association, a member-owned life insurance company based in Reston. MSF 0.60 0.40 0.20 0.00 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Q1 Q2 Q3 Q4 $30 $28 Outlook For a submarket with a heavy presence of government contractors and civil engineering firms, a new administration may prove beneficial to tenants in Route 28 South. Promises from both major parties to vastly increase funding for big-ticket items such as infrastructure and cybersecurity gives established government contractors the ability to further pivot toward these future areas of growth. Full Service PSF $26 $24 $22 $20 $18 2011 2012 2013 2014 2015 2016 Class A Class B cushmanwakefield.com 13

Loudoun County Market Indicators *Arrows = Current Qtr Trend 18.2% Net Absorption 9,900 SF Under Construction 64,800 SF Deliveries 0 SF $24.37 FS Loudoun County continues to offer perhaps the best value of any submarket in NoVA, as tenants can find attractive rental rates in high-quality, newer buildings. The submarket s 5.1 MSF of office space currently posts a vacancy rate of 18.2%, its lowest in over ten years. Absorption has been positive in eight of the last nine quarters, causing vacancy to fall 560 BP over the period. The market experienced high leasing volume in the third quarter, including a new 24,677 SF lease from Unanet at 22970 Indian Creek Drive, and a new 20,854 SF lease from Truestone at 21355 Ridgetop Circle. New leasing has been consistent over the past two years, averaging 43,000 SF of new leasing activity per quarter. The submarket is on track to surpass 200,000 SF of new leasing in 2016, which would be the highest annual leasing figure since 2009. The only building currently under construction is the 15,000-SF 19320 Diamond Lake Drive. This property is described as a live/ work building and is being constructed in the heart of Lansdowne Town Center. Net Absorption Deliveries Square Feet, 000 s 600 500 400 300 200 100 0-100 06 07 08 09 10 11 12 13 14 15 YTD 16 New Leasing Activity 0.90 Net Absorption Deliveries Rate 25% 20% 15% 10% 5% 0% Rate In the third quarter, Retail Properties of America announced its intention to purchase the downtown of One Loudoun for $161 million. This retail-heavy area contains a variety of bars, restaurants, a cinema, and a grocer. Miller & Smith plans to further develop the rest of the town center (which it will continue to own) with multifamily units. MSF 0.80 0.70 0.60 0.50 0.40 0.30 0.20 0.10 0.00 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Q1 Q2 Q3 Q4 $28 Outlook Loudoun County s office market should continue to benefit as development continues to shift westward along the Toll Road and as tenants widen their search for space along the length of the built and under construction portions of the Silver Line. Proximity to executive housing, new and affordable building product, and an increasing amount of retail options will continue to benefit the submarket. Full Service PSF $26 $24 $22 $20 $18 $16 2011 2012 2013 2014 2015 2016 Class A Class B Cushman & Wakefield 14

Appendix Table Summaries Metro Washington Office Market Summary 15 Employment Data 15 Office Availability,, and Net Absorption 16 Trailing 12-Month Data 17 Historical Year-End Data 18 Market Statistics by Class 19-20 Survey of New Office Space by Submarket 21-24 Methodology & Definitions 25 Metro Washington Office Market Summary: Third Quarter 2016p Inventory Total Vacant Space Metro Washington Current Employment Data Rate Q22016 Absorption Year to Date Absorption Washington, DC 108,620,109 12,919,188 11.9% 108,557 580,677 Northern Virginia 130,524,599 27,572,227 21.1% 442,988 442,988 Suburban Maryland 56,596,533 12,005,453 21.2% -7,974 232,508 Regional Totals 295,741,241 52,496,868 17.8% 543,571 1,256,173 Non Farm Employment (Jan-Sep 2015) Non Farm Employment (Jan-Sep 2016p) Jobs Added/ Lost* Percent Change Washington, DC 765,856 776,911 11,055 1.4% Northern Virginia 1,399,311 1,430,522 31,211 2.2% Suburban Maryland 973,522 996,444 22,922 2.4% Regional Totals 3,161,722 3,235,644 73,922 2.3% SOURCE: U.S. Bureau of Labor Statistics (Not seasonally adjusted) * Average per year to date p - preliminary cushmanwakefield.com 15

Appendix Office Availability,, and Net Absorption, Third Quarter 2016p Total Inventory New/Relet Space Available Sublet Space Available Total Space Available Rate New/Relet Absorption Sublet Absorption Total Net Absorption Rosslyn 8,638,623 2,335,379 63,966 2,399,345 27.8% (11,361) 811 (10,550) Courthouse/ Clarendon/Virginia Square 5,531,747 948,046 55,946 1,003,992 18.1% 17,680 (15,377) 2,303 Ballston 7,095,248 1,341,391 33,593 1,374,984 19.4% 90,506 15,576 106,082 Crystal City/Pentagon City 10,945,402 2,358,293 84,567 2,442,860 22.3% 146,826 (6,537) 140,289 Arlington County 32,211,020 6,983,109 238,072 7,221,181 22.4% 243,651 (5,527) 238,124 RB Corridor 21,265,618 4,624,816 153,505 4,778,321 22.5% 96,825 1,010 97,835 Old Town 7,991,666 623,187 48,480 671,667 8.4% 48,180 18,944 67,124 I-395 Corridor 6,058,050 2,339,035 8,262 2,347,297 38.7% 3,048 (3,100) (52) Huntingon/Eisenhower 2,423,709 817,106 20,822 837,928 34.6% (5,196) (8,945) (14,141) City of Alexandria 16,473,425 3,779,328 77,564 3,856,892 23.4% 46,032 6,899 52,931 Inside the Beltway 48,684,445 10,762,437 315,636 11,078,073 22.8% 289,683 1,372 291,055 Annandale/Baileys 1,369,626 390,545 13,314 403,859 29.5% (7,041) (730) (7,771) Merrifield/Route 50 6,608,194 1,150,793 102,141 1,252,934 19.0% (96,768) (7,850) (104,618) Fairfax/Oakton/Vienna 9,509,467 2,129,828 62,829 2,192,657 23.1% (88,009) (8,703) (96,712) Tysons Corner 23,055,893 4,541,368 222,531 4,763,899 20.7% 150,548 (32,036) 118,512 Reston/Herndon 24,230,837 3,616,699 403,671 4,020,370 16.6% (120,311) 88,811 (31,500) Rt 28 S/Chantilly 8,675,922 1,687,068 186,500 1,873,568 21.6% 241,446 5,535 246,981 Springfield 3,268,420 1,038,971 16,733 1,055,704 32.3% 20,417 (3,311) 17,106 Fairfax County 76,718,359 14,555,272 1,007,719 15,562,991 20.3% 100,282 41,716 141,998 50-66 Corridor 16,117,661 3,280,621 164,970 3,445,591 21.4% (184,777) (16,553) (201,330) Loudoun County 5,121,795 868,376 62,787 931,163 18.2% 21,860 (11,925) 9,935 Outside the Beltway 81,840,154 15,423,648 1,070,506 16,494,154 20.2% 122,142 29,791 151,933 Northern Virginia 130,524,599 26,186,085 1,386,142 27,572,227 21.1% 411,825 31,163 442,988 1 The Rosslyn/Ballston (R/B) corridor is comprised of Rosslyn, Clarendon/Courthouse, Virginia Square, and Ballston submarkets. 2 Inside the Beltway is comprised of Arlington County and Alexandria/Outside the Beltway is comprised of Fairfax and Loudoun Counties 3 The 50/66 corridor is comprised of Merrifield, Vienna, Oakton, Fairfax Center, and Fairfax City submarkets. ****New Space Available and New Space Absorption based on buildings delivered 2005 to present P - Preliminary Cushman & Wakefield 16

Appendix Trailing 12-Month Data Total Office Inventory Office Rate Total Office Absorption ` 4th Qtr 2015 1st Qtr 2016 2nd Qtr 2016 3rd Qtr 2016 4th Qtr 2015 1st Qtr 2016 2nd Qtr 2016 3rd Qtr 2016 4th Qtr 2015 1st Qtr 2016 2nd Qtr 2016 3rd Qtr 2016 Rosslyn 8,613,043 8,638,623 8,638,623 8,638,623 29.1% 28.1% 27.7% 27.8% 43,613 76,194 7,996 (10,550) Courthouse/ Clarendon/ Virginia Square 5,531,747 5,531,747 5,531,747 5,531,747 21.7% 18.6% 17.6% 18.1% (89,724) 172,148 54,119 2,303 Ballston 7,076,618 7,095,248 7,095,248 7,095,248 18.9% 21.1% 21.7% 19.4% 46,270 (209,841) (42,416) 106,082 Crystal City/ Pentagon City 10,945,402 10,945,402 10,945,402 10,945,402 21.3% 22.2% 23.6% 22.3% 156,364 (93,734) (63,293) 140,289 Arlington County 32,166,810 32,211,020 32,211,020 32,211,020 22.9% 22.9% 23.2% 22.4% 156,523 (55,233) (43,594) 238,124 RB Corridor 21,221,408 21,265,618 21,265,618 21,265,618 23.7% 23.3% 23.1% 22.5% 159 38,501 19,699 97,835 Old Town 8,191,666 7,991,666 7,991,666 7,991,666 10.2% 9.1% 9.2% 8.4% (27,928) 3,412 (7,589) 67,124 I-395 Corridor 6,058,050 6,058,050 6,058,050 6,058,050 37.3% 37.5% 38.7% 38.7% (99,645) 14,386 43,842 (52) Huntington/ Eisenhower 2,742,707 2,761,709 2,761,709 2,423,709 42.3% 41.4% 41.4% 34.6% (4,877) 17,713 (551) (14,141) City of Alexandria 16,992,423 16,811,425 16,811,425 16,473,425 25.0% 24.7% 25.2% 23.4% (132,450) 35,511 35,702 52,931 Inside the Beltway 49,159,233 49,022,445 49,022,445 48,684,445 23.6% 23.5% 23.9% 22.8% 24,073 (19,722) (7,892) 291,055 Annandale/Baileys 1,358,705 1,369,626 1,369,626 1,369,626 30.4% 31.5% 28.9% 29.5% (52,874) (18,545) 35,535 (7,771) Merrifield/Route 50 6,608,194 6,608,194 6,608,194 6,608,194 20.2% 17.4% 17.1% 19.0% (25,923) 185,459 23,963 (104,618) Fairfax/Oakton/Vienna 9,505,603 9,509,467 9,509,467 9,509,467 17.4% 21.6% 22.3% 23.1% 33,223 (406,138) (66,305) (96,712) Tysons Corner 23,240,699 22,573,953 23,055,893 23,055,893 19.1% 19.3% 20.3% 20.7% 160,384 (97,668) 212,913 118,512 Reston/Herndon 24,690,837 24,290,837 24,290,837 24,230,837 16.4% 17.1% 16.7% 16.6% (109,727) (195,888) 96,870 (31,500) Rt 28 S/Chantilly 9,242,182 8,675,922 8,675,922 8,675,922 24.8% 25.0% 24.1% 21.6% (8,266) 136,827 80,273 246,981 Springfield 3,268,420 3,268,420 3,268,420 3,268,420 35.1% 33.2% 34.5% 32.3% 111,018 63,345 (41,660) 17,106 Fairfax County 77,914,640 76,296,419 76,778,359 76,718,359 19.7% 20.2% 20.3% 20.3% 107,835 (332,608) 341,589 141,998 50-66 Corridor 16,113,797 16,117,661 16,117,661 16,117,661 18.5% 19.9% 20.2% 21.4% 7,300 (220,679) (42,342) (201,330) Loudoun County 5,121,795 5,121,795 5,121,795 5,121,795 20.3% 19.7% 18.4% 18.2% 18,110 33,198 37,123 9,935 Outside the Beltway 83,036,435 81,418,214 81,900,154 81,840,154 19.7% 20.2% 20.2% 20.2% 125,945 (299,410) 378,712 151,933 Northern Virginia 132,195,668 130,440,659 130,922,599 130,524,599 21.2% 21.4% 21.6% 21.1% 150,018 (319,132) 370,820 442,988 1 The Rosslyn/Ballston (R/B) corridor is comprised of Rosslyn, Clarendon/Courthouse, Virginia Square, and Ballston submarkets. 2 Inside the Beltway is comprised of Arlington County and Alexandria/Outside the Beltway is comprised of Fairfax and Loudoun Counties. 3 The 50/66 corridor is comprised of Merrifield, Vienna, Oakton, Fairfax Center, and Fairfax City submarkets. 4 The I-395 and Springfield/Newington submarkets were updated in the second quarter of 2012 with additional inventory. p- preliminary cushmanwakefield.com 17

Appendix Historical Year-End Data Total Office Inventory Office Rate Total Annual Absorption 2014 2015 2016 p 2014 2015 2016 p 2014 2015 2016 p Rosslyn 8,695,791 8,613,043 8,638,623 30.6% 29.1% 27.8% (378,346) 159,209 73,640 Courthouse/Clarendon/ Virginia Square 5,531,747 5,531,747 5,531,747 16.5% 21.7% 18.1% 194,219 (81,594) 228,570 Ballston 6,820,962 7,076,618 7,095,248 20.9% 18.9% 19.4% (308,316) 127,316 (146,175) Crystal City/Pentagon City 11,131,931 10,945,402 10,945,402 23.7% 21.3% 22.3% 137,073 346,228 (16,738) Arlington County 32,180,431 32,166,810 32,211,020 23.7% 22.9% 22.4% (355,370) 551,159 139,297 RB Corridor 21,048,500 21,221,408 21,265,618 23.8% 23.7% 22.5% (492,443) 204,931 156,035 Old Town 8,191,666 8,191,666 7,991,666 9.2% 10.2% 8.4% 89,607 (82,120) 62,947 I-395 Corridor 6,293,050 6,058,050 6,058,050 35.9% 37.3% 38.7% (85,665) (227,461) 58,176 Huntingon/Eisenhower 2,742,707 2,742,707 2,423,709 41.6% 42.3% 34.6% 61,173 (17,885) 3,021 City of Alexandria 17,227,423 16,992,423 16,473,425 24.1% 25.0% 23.4% 65,115 (327,466) 124,144 Inside the Beltway 49,407,854 49,159,233 48,684,445 23.9% 23.6% 22.8% (290,255) 223,693 263,441 Annandale/Baileys 1,358,705 1,358,705 1,369,626 23.2% 30.4% 29.5% 22,127 (97,367) 9,219 Merrifield/Route 50 6,746,835 6,608,194 6,608,194 19.3% 20.2% 19.0% 101,584 (106,447) 104,804 Fairfax/Oakton/Vienna 9,505,603 9,505,603 9,509,467 17.1% 17.4% 23.1% (86,554) 5,921 (569,155) Tysons Corner 23,638,285 23,240,699 23,055,893 20.1% 19.1% 20.7% (274,063) 67,379 233,757 Reston/Herndon 24,690,837 24,690,837 24,230,837 15.7% 16.4% 16.6% 64,288 268,104 (130,518) Rt 28 S/Chantilly 9,092,182 9,242,182 8,675,922 22.4% 24.8% 21.6% (378,965) 41,794 464,081 Springfield 3,268,420 3,268,420 3,268,420 38.1% 35.1% 32.3% (151,859) 73,408 38,791 Fairfax County 78,300,867 77,914,640 76,718,359 18.7% 19.7% 20.3% (703,442) 252,792 150,979 50-66 16,252,438 16,113,797 16,117,661 18.0% 18.5% 21.4% 15,030 (100,526) (464,351) Loudoun County 5,072,696 5,121,795 5,121,795 21.0% 20.3% 18.2% 88,059 74,754 80,256 Outside the Beltway 83,373,563 83,036,435 81,840,154 18.8% 19.7% 20.2% (615,383) 327,546 231,235 Northern Virginia 132,781,417 132,195,668 130,524,599 21.1% 21.2% 21.1% (905,638) 551,239 494,676 1 Inside the Beltway is comprised of Arlington County and Alexandria/Outside the Beltway is comprised of Fairfax and Loudoun Counties 2 The Rosslyn/Ballston (R/B) corridor is comprised of Rosslyn, Clarendon/Courthouse, Virginia Square, and Ballston submarkets. 3 The 50/66 corridor is comprised of Merrifield, Vienna, Oakton, Fairfax Center, and Fairfax City submarkets. 4 The I-395 and Springfield/Newington submarkets were updated in the second quarter of 2012 with additional inventory. Cushman & Wakefield 18

Market Statistics Northern Virginia 3rd Quarter 2016 Market Statistics Buildings Total Inventory (SF) New/Relet (%) Sublet (%) Total * (%) Net Absorption Current QTR (SF) Under Construction (SF) Average (FS) Alexandria Class A 47 7,855,196 18.7% 0.6% 19.3% 27,936 720,000 $35.10 B 64 6,746,020 31.6% 0.3% 31.8% 13,981 - $29.99 C 27 1,872,209 9.7% 0.6% 10.2% 11,014 - $24.68 TOTAL 138 16,473,425 22.9% 0.5% 23.4% 52,931 720,000 $31.14 RB Corridor Class A 49 12,757,247 20.2% 0.8% 21.0% 88,859 862,729 $43.14 B 35 9,378,602 25.2% 0.3% 25.5% 10,446 - $40.81 C 19 2,280,849 29.5% 2.0% 31.5% (1,470) - $34.97 TOTAL 103 21,265,618 21.7% 0.7% 22.5% 97,835 862,729 $40.87 Crystal City/Pentagon City Class A 25 7,794,322 17.5% 0.9% 18.4% 391,584 - $39.33 B 14 3,151,080 31.5% 0.5% 31.9% (251,295) - $34.86 C - - - - - - - - TOTAL 39 10,945,402 21.5% 0.8% 22.3% 140,289 - $37.43 Tysons Class A 51 13,126,289 19.5% 0.9% 20.4% 76,142 1,751,813 $37.44 B 61 7,751,416 20.7% 1.3% 21.9% 8,667 - $29.47 C 30 2,178,188 17.7% 0.2% 17.9% 33,703 - $24.93 TOTAL 142 23,055,893 19.7% 1.0% 20.7% 118,512 1,751,813 $31.93 Reston/Herndon Class A 106 17,967,174 14.9% 1.8% 16.7% (42,662) 354,913 $31.06 B 64 5,589,260 13.7% 1.5% 15.2% 26,300 - $25.51 C 15 674,403 25.9% 0.0% 25.9% (15,138) - $21.27 TOTAL 185 24,230,837 14.9% 1.7% 16.6% (31,500) 354,913 $28.88 * Current - the vacancy rate is calculated using the combined total of vacant direct, sublease and new space. cushmanwakefield.com 19

Market Statistics Northern Virginia 3rd Quarter 2016 Market Statistics Buildings Total Inventory (SF) New/Relet (%) Sublet (%) Total * (%) Net Absorption Current QTR (SF) Under Construction (SF) Average (FS) Merriield/Route 50 Class A 20 3,616,798 21.2% 2.3% 23.5% (58,704) - $31.93 B 15 1,566,456 19.2% 1.1% 20.3% (43,809) - $25.78 C 20 1,424,940 5.9% 0.0% 5.9% (2,105) - $22.02 TOTAL 55 6,608,194 17.4% 1.5% 19.0% (104,618) - $30.31 Fairfax/Oakton/Vienna Class A 25 4,365,706 18.9% 0.0% 18.9% (17,560) 385,000 $29.65 B 47 4,410,647 25.4% 1.4% 26.8% (60,202) - $24.33 C 12 733,114 25.4% 0.2% 25.6% (18,950) - $23.54 TOTAL 84 9,509,467 22.4% 0.7% 23.1% (96,712) 385,000 $25.20 Route 28 South Class A 48 6,127,730 18.8% 0.9% 19.7% 232,450 - $27.36 B 27 2,548,192 21.1% 5.1% 26.2% 14,531 - $23.13 C - - - - - - - - TOTAL 75 8,675,922 19.4% 2.1% 21.6% 246,981 - $25.91 Loudoun County Class A 40 3,658,941 14.6% 1.1% 15.7% 8,322 64,800 $25.83 B 18 1,462,854 22.9% 1.5% 24.5% 1,613 - $21.19 C - - - - - - - - TOTAL 58 5,121,795 17.0% 1.2% 18.2% 9,935 64,800 $24.37 Northern Virginia Class A 426 79,581,628 18.5% 1.1% 19.6% 733,876 4,139,255 $34.83 B 352 40,064,494 23.2% 1.1% 24.4% (282,326) - $30.50 C 144 10,878,477 19.9% 0.6% 20.5% (8,562) - $26.92 TOTAL 922 130,524,599 20.1% 1.1% 21.1% 442,988 4,139,255 $32.24 * Current - the vacancy rate is calculated using the combined total of vacant direct, sublease and new space. Cushman & Wakefield 20

Northern Virginia Survey of Office Space Under Construction/Under Renovation RB Corridor BUILDING ADDRESS OWNER/DEVELOPER RENTAL RATE STATUS DELIVERY DATE RENTABLE BUILDING AREA AVAILABLE SPACE PERCENT PRELEASED MAJOR TENANTS 1201 Wilson Boulevard JBG N/A U/C 3Q17 521,000 195,700 62% CEB 2311 Wilson Boulevard Carr Properties N/A U/C 3Q17 174,962 131,172 25% Opower 1000 North Glebe Road Marymount University N/A U/C 2Q17 166,767 56,631 64% Marymount University Total 862,729 383,503 56% Alexandria BUILDING ADDRESS OWNER/DEVELOPER RENTAL RATE STATUS DELIVERY DATE RENTABLE BUILDING AREA AVAILABLE SPACE PERCENT PRELEASED MAJOR TENANTS 2401 Eisenhower Avenue Lowe Enterprises N/A U/C 1Q17 720,000 0 100% National Science Foundation Total 720,000-100% Fairfax/Oakton/Vienna BUILDING ADDRESS OWNER/DEVELOPER RENTAL RATE STATUS DELIVERY DATE RENTABLE BUILDING AREA AVAILABLE SPACE PERCENT PRELEASED MAJOR TENANTS 1041 Electric Avenue Navy Federal Credit Union N/A U/C 2Q17 235,000 0 100% Navy Federal Credit Union 4097 Monument Corner Drive Peterson Companies N/A U/C 3Q17 150,000 0 100% Apple Federal Credit Union Total 235,000-100% Status Operating Expense and Real Estate Tax Base U/C = Under Construction FS = Full Service NN = Plus Electric & Char N/A = No Space Available U/R = Under Renovation N = Plus Electric NT = Plus Taxes NNN = Net of all Operating Expenses and Taxes cushmanwakefield.com 21

Northern Virginia Survey of Office Space Under Construction/Under Renovation Tysons Corner BUILDING ADDRESS OWNER/DEVELOPER RENTAL RATE STATUS DELIVERY DATE RENTABLE BUILDING AREA AVAILABLE SPACE PERCENT PRELEASED MAJOR TENANTS Capital One Tower Capital One N/A U/C 3Q18 975,000 0 100% Capital One 8350 Broad Street Meridian Group N/A U/C 1Q18 436,813 352,371 100% Tegna Colshire Drive / MITRE IV MITRE N/A U/C 4Q16 340,000 0 100% MITRE Total 1,751,813 352,371 80% Reston/Herndon BUILDING ADDRESS OWNER/DEVELOPER RENTAL RATE STATUS DELIVERY DATE RENTABLE BUILDING AREA AVAILABLE SPACE PERCENT PRELEASED MAJOR TENANTS 1900 Reston Metro Plaza Comstock Partners N/A U/C 2Q17 354,913 354,913 0% N/A Total 354,913 354,913 0% Leesburg BUILDING ADDRESS OWNER/DEVELOPER RENTAL RATE STATUS DELIVERY DATE RENTABLE BUILDING AREA AVAILABLE SPACE PERCENT PRELEASED MAJOR TENANTS 309 Kellys Ford Plaza SE Oaklawn Development Partners N/A U/C 4Q16 64,800 0 100% EIT, LLC Total 64,800-100% Northern Virginia Summary RENTABLE BUILDING AREA AVAILABLE SPACE PERCENT PRELEASED 2016 DELIVERIES 404,800 0 100% 2017 DELIVERIES 2,322,642 738,416 68% 2018 DELIVERIES 975,000 0 100% 2019 DELIVERIES 0 0 0% TOTAL CURRENTLY UNDER CONSTRUCTION/RENOVATION 3,702,442 738,416 80% Status Operating Expense and Real Estate Tax Base U/C = Under Construction FS = Full Service NN = Plus Electric & Char N/A = No Space Available U/R = Under Renovation N = Plus Electric NT = Plus Taxes NNN = Net of all Operating Expenses and Taxes Cushman & Wakefield 22

Northern Virginia Survey of New Office Space 2016 Deliveries BUILDING ADDRESS OWNER/DEVELOPER STATUS RENTAL RATE SUBMARKET 1775 Tysons Boulevard / The Corporate Office Centre @ Tyssons II RENTABLE BUILDING AREA NEW SPACE AVAILABLE VACANCY RATE (AS OF CURRENT QUARTER)* PERCENT LEASED UPON DELIVERY Lerner Enterprises Delivered 2Q16 N/A Tysons Corner 475,809 122,212 26% 39% 4850 Stonecroft Boulevard / The Crossroads at Westfields II The Alter Group Delivered 1Q16 N/A Route 28 South/Chantilly 160,000 160,000 0% 100% Total 635,809 282,212 44% 56% 2015 Deliveries BUILDING ADDRESS OWNER/DEVELOPER STATUS RENTAL RATE SUBMARKET RENTABLE BUILDING AREA NEW SPACE AVAILABLE VACANCY RATE (AS OF CURRENT QUARTER)* PERCENT LEASED UPON DELIVERY 20193 Ashbrook Pl Merritt Properties, LLC Delivered 1Q15 N/A Loudoun 32,675 0 0% 100% 22365 Broderick Dr LGV Group Delivered 1Q15 $22.75 Loudoun 35,368 13,045 37% 26% 43777 Central Station Dr Comstock Holding Companies, Inc Delivered 1Q15 $28.50 Loudoun 99,099 32,690 33% 50% 4870 Stonecroft Blvd Corporate Office Properties Trust Delivered 3Q15 N/A Route 28 South 159,300 0 0% 100% Total 326,442 45,735 14% 77% Operating Expense and Real Estate Tax Base * rate for new space- does not include relet or sublet space available FS = Full Service NN = Plus Electric & Char N/A = No Space Available N = Plus Electric NT = Plus Taxes NNN = Net of all Operating Expenses and Taxes cushmanwakefield.com 23