Market Report. Suburban Maryland 4th Quarter cushmanwakefield.com

Market Report Suburban Maryland 4th Quarter 2017 cushmanwakefield.com

Contents DC Metropolitan Area Overview...3 Suburban Maryland & Map...4-6 Bethesda/Chevy Chase...7 Rock Spring Park...8 Pike Corridor...9 I-270/Rockville...10 Gaithersburg/Germantown...11 Silver Spring...12 Prince George s County...13 Frederick County...14 Appendix...15 Tables...18-25 Methodology & Definitions...26 About Cushman & Wakefield...27 Cushman & Wakefield 2

Washington, DC Metropolitan Area The past 12 months proved to be another strong year for economic performance in the Washington, DC metropolitan region (DC metro). For a third straight year, job growth far exceeded the historical average, adding 56,300 nonfarm payroll positions in 2017 only slightly off the 2015 and 2016 totals of 57,000 per year. Job growth was led by the office-intensive Professional and Business Services sector, which grew by 16,300 jobs in 2017. Job creation in other office-using sectors was flat to negative: employment in Financial Services ended the year up 700, in Federal Government down 500 and in Information down 2,500 jobs. Among non-office-using sectors, the Education and Healthcare, and Leisure and Hospitality sectors experienced strong gains of over 13,000 positions each. The District of Columbia (DC) added 10,000 jobs while Northern Virginia (NoVA) and Suburban Maryland (SMD) both added 23,000. While job growth and the overall economy continued to surge, overall net absorption continued to erode compared to historical averages. The DC metro region absorbed 1.9 million square feet (msf) of space in 2017, well off the 2.6 msf that the region has averaged every year since 2001. The regional vacancy rate was 17.8%, relatively unchanged from year-end 2016. DC accounted for 600,000 square feet (sf) of absorption and a 12.4% vacancy rate, NoVA registered 1.0 msf of absorption and a vacancy rate of 21.5% and SMD had 130,000 sf of absorption with vacancy ending the year at 19.4%. While technology, consumer goods and real estate firms executed several notable new leases in 2017, most large new transactions were executed by organizations that are typically on the top deals list in the DC metro region: federal agencies, law firms, not-for-profits and federal contractors. The federal government s leasing arm the General Services Administration (GSA) was responsible for the largest lease of the year in each of the three DC metro jurisdictions, with the Federal Communications Commission leasing 473,000 sf in DC, the Transportation Security Administration leasing 625,000 sf in Northern Virginia, and the Department of Homeland Security leasing 575,000 sf in Suburban Maryland. These three cases demonstrate that the government will continue to consolidate large requirements in submarkets that offer quality development at a relative value compared to pricier, traditional government enclaves. New supply in the core downtown submarkets of DC continues to be a concern for overall market fundamentals looking forward. The Central Business District (CBD), East End, and Capitol Hill/NoMa are expected to deliver over 7.0 msf of office space in the next 24 months, 4.8 msf of which is currently under construction. Among those projects that are currently under construction, 2.5 msf 51% is already preleased. Expect vacancy rates and concessions to rise in these submarkets as tenants continue to seek the top floors while velocity on lesser space in new developments remains modest, at best. On the flipside, the transit-oriented suburban submarkets have been relatively supply-constrained with under-construction projects nearing 80.0% preleased. This supply constraint is subject to change as a plethora of high-profile, large tenants are currently active in the market with limited existing quality space options left to accommodate them. This will benefit developers like Carr Properties, The Meridian Group and JBG Smith, all of whom have risked spec development. The next 12 to 18 months should see two or more developments getting underway in Reston/Herndon, one likely in Tysons, and an active market for projects that recently broke ground in Bethesda. WASHINGTON, DC METRO Economic Indicators Q4 16 Q4 17 DC Metro Employment 3.2M 3.3M DC Metro Unemployment 3.8% 3.6% U.S. Unemployment 4.6% 4.1% Market Indicators Q4 16 Q4 17 Overall Vacancy 17.8% 17.8% Net Absorption 1.4M 1.9M Under Construction 8.4M 10.0M Average (FS) $35.85 $37.54 Net Absorption/ 4Q TRAILING AVERAGE 1,500 1,000 500 0-500 Washington, DC Metropolitan Area NET ABSORPTION - DELIVERIES - VACANCY 12-Month Forecast 12-Month Forecast $39 $39 $38 $38 $37 $37-1,000 $36 2011 2012 2013 2014 2015 2016 2017 Net Absorption, SF (thousands), $ PSF 10 8 6 4 2 0-2 -4-6 05 06 07 08 09 10 11 12 13 14 15 16 17 Net Absorption Deliveries 20% 16% 12% 8% 4% 0% Vacancy Rate cushmanwakefield.com 3

Q4 16 Q4 17 D.C. Metro Employment 3.2M 3.3M Forecast Suburban Maryland Economy Job growth in Suburban Maryland remained strong in 2017, but the majority of job gains were in non-office-using sectors. From January through November, the local economy generated just over 15,700 net new, nonfarm payroll jobs. Leading job growth yearover-year were the Education and Healthcare sector with 5,400 jobs, and Leisure and Hospitality with 5,300 jobs. For the officeusing sectors there was a loss of about 1,350 jobs in Information, Financial, and Federal employment, and a small gain of 370 jobs in the Professional Business Services sector. Market Overview Following headline-making headquarters relocations by the General Services Administration (GSA) for the Department of Homeland Security s (DHS) Citizenship and Immigration Services (CIS) to Prince George s County, and by Marriott International to Bethesda/Chevy Chase, Suburban Maryland once again captured two notable leases by the close of the fourth quarter of 2017. JBG Smith secured two more preleases (also the second and third largest leases of the quarter) at 4747 Bethesda Avenue: Booz Allen Hamilton preleased 65,000 square feet (sf) and Host Hotels preleased 55,000 sf, bringing the Class A building to 71.0% committed. These two leases helped new leasing activity close the fourth quarter of 2017 at 3.7 million square feet (msf) the highest level since 2007. Such healthy leasing activity resulted in positive overall year-todate net absorption of 130,658 sf, 90,173 sf of which occurred in the fourth quarter. There was a handful of small to midsized tenants and expansions that helped bolster overall net absorption. The GSA expanded to take 12,000 sf at 20030 Century Boulevard, and the Make a Wish Foundation moved into 11,000 sf at 4451-4459 Forbes Boulevard. The largest move-in of the quarter was Bank of America/Merrill Lynch which occupied 23,500 sf at 7501 Wisconsin Avenue. Given positive absorption, overall vacancy declined 140 basis points (bps) year-over-year, closing the fourth quarter of 2017 at 19.4%. With declining vacancy particularly in the Bethesda/Chevy Chase submarket where vacancy remained among the lowest in the region landlords have begun to push overall asking rents upward. Overall asking rents for all classes in Suburban Maryland closed the fourth quarter of 2017 at$26.85 per square foot (psf). Throughout 2017, headlines focused on the development story of Bethesda/Chevy Chase, particularly as several buildings are expected to go spec over the next 12 to 18 months. But other areas of the Suburban Maryland market have also continued to attract tenants with build to-suit opportunities, including Kaiser Permanente s building at 4000 Garden City Drive, and the DHS/ CIS headquarters at One Town Center. Outlook With the pipeline of new construction coming to the Bethesda/ Chevy Chase submarket and the Purple Line finally underway, excitement continues to build in the Suburban Maryland market. The area s strong demographics, exceptional amenities and growing range of transportation options position Suburban Maryland for revitalization in the Metro-accessible submarkets. With the increasing trend toward the live-work-play environment, these new multipurpose developments will appeal strongly to companies that are looking to attract and retain top talent in their workforce. However, vacancies in non-metro served locations are likely to remain elevated as tenants gravitate towards more amenitized options. Thousands D.C. Metro Unemployment 3.8% 3.6% U.S. Unemployment 4.7% 4.1% Market Indicators 12-Month Q4 16 Q4 17 Q4 16 Q4 17 12-Month Forecast Forecast Vacancy 20.6% 19.4% Vacancy 20.6% 19.4% YTD Net Absorption (sf) 747k 130k YTD Absorption (sf) 747k 130k Under Construction (sf) 0 1,106,787 Under Construction (sf) 0 1,106,787 Average * $26.33 $26.85 Average $26.33 $26.85 *Rental rates reflect gross asking $psf/year Net Absorption/ FOUR QUARTER TRAILING AVERAGE $29.00 250 250 200 3 $29.00 200 150 $28.50 $28.50 2 $28.50 150 $28.00 100 100 50 1 $28.00 $27.50 50 $27.50 0 $27.00-50 0 $27.00 $26.50-100 -50-1 $26.50-100 $26.50 $26.00-150 -150-2 $26.00-200 $26.00 $25.50-200 -250-3 $25.50 $25.00-250 $25.50-300 2011 2012 2013 2014 2015 2016 Q2 2017 $25.00-300 2011 Net 2012Absorption, 2013 2014 2015 Asking 2016 Rent, Q4 $ PSF 2017 $25.00 2011 2012 2013 2014 2015 2016 Q4 2017 Net Absorption,, PSF Net Absorption,, $ PSF x 100000 Overall Vacancy 24% 22% 20% 18% 16% 14% Historical Average = 19.5% 12% 2011 2012 2013 2014 2015 2016 2017 S ab qu ex ex a B M G (b de w ha al $2 T B go M op C O W C co de tr th th w to lo am Cushman & Wakefield 4

Maryland Office Submarkets Maryland Office Submarkets 83 FREDERICK 27 26 795 340 85 32 695 GERMANTOWN 28 GAITHERSBURG NORTH SILVER SPRING 29 95 I-270/ROCKVILLE PIKE CORRIDOR LAUREL 190 270 BELTSVILLE/ COLLEGE PARK ROCK SPRING PARK 295 GREENBELT BETHESDA/ CHEVY CHASE SILVER SPRING LANDOVER/ LANHAM BOWIE 236 495 395 95 OXON HILL/ SUITLAND 95 1 210 5 cushmanwakefield.com 5 cushmanwakefield.com 5

Top Transactions Key Lease Transactions Q4 2017 PROPERTY SF TENANT TRANSACTION TYPE SUBMARKET 2115 East Jefferson Street 89,708 GSA - National Institutes of Health Renewal Pike Corridor 4747 Bethesda Avenue 65,000 Booz Allen Hamilton Direct Bethesda/Chevy Chase 4747 Bethesda Avenue 55,050 Host Hotels Direct Bethesda/Chevy Chase 6511 America Boulevard 54,000 GSA - Federal Emergency Management Agency Renewal Bethesda/Chevy Chase 4600 Powder Mill Road 40,000 Virginia College Renewal Bethesda/Chevy Chase Suburban Maryland Office Market Net Absorption - Deliveries - Vacancy, Fourth Quarter 2017 Suburban Maryland Office Market Inventory & Vacancy by Submarket, Fourth Quarter 2017 2.0 24% 16 24% 1.5 1.0 0.5 0.0-0.5-1.0-1.5 05 06 07 08 09 10 11 12 13 14 15 16 17 Net Absorption Deliveries Vacancy Rate 20% 16% 12% 8% 4% 0% Vacancy Rate 14 12 10 8 6 4 2 0 22% 20% 18% 16% 14% 12% 10% Vacancy Rate Class A Class B Class C Vacancy % MD Overall Vacancy Cushman & Wakefield 6

Bethesda/Chevy Chase Market Indicators *Arrows = Current Qtr Trend Vacancy 10.3% Net Absorption (91,454 SF) Under Construction 626,02 Deliveries $36.89 The Bethesda/Chevy Chase submarket closed the fourth quarter of 2017 with generally healthy market fundamentals. Year-to-date new leasing activity registered just over 1.2 million square feet (msf) a record high due in large part to Marriott International, Inc. s prelease for its future headquarters at 7750 Wisconsin Avenue committed to earlier in the year. Additionally, fourthquarter leasing activity was bolstered by two preleases secured by JBG Smith at 4747 Bethesda Avenue: Booz Allen Hamilton preleased 65,000 square feet (sf) and Host Hotels preleased 55,050 sf. Combined with JBG Smith s previously announced commitment to take approximately 100,000 sf at the property, the Class A building is currently 71.0% preleased. The third-largest lease of the fourth quarter of 2017 was that executed by WTOP for 30,612 sf at 5425 Wisconsin Avenue. Despite record new leasing activity, year-to-date net absorption closed the fourth quarter of 2017 at negative 91,454 sf a yearover-year (YOY) decline of 67.0%. The decline was primarily a result of limited near-term availabilities for tenants. The first new construction building is not scheduled to deliver until mid-2019, leaving few existing options in the Bethesda/Chevy Chase submarket. However, given that new leasing activity has been buoyed by a number of large preleases from new-tothe-submarket tenants, once those new buildings deliver, net absorption will certainly spike upward. The overall vacancy rate in the Bethesda/Chevy Chase submarket closed the fourth quarter of 2017 at 10.8%. While that is up slightly year-over-year by 110 basis points (bps), it is still among the lowest in the region. Given the relatively low vacancy in the submarket, overall asking rents have continued to hold steady, closing the fourth quarter of 2017 at $36.89 per square foot (psf) for all classes. Class A rental rates closed the quarter at $41.08 psf a 4% decline quarter-over-quarter primarily due to a large block of space with above-average asking rents leasing up in the fourth quarter, and increasingly limited quality options remaining on the market. Net Absorption Deliveries Vacancy 0.4 0.3 0.3 0.2 New Leasing Activity 14% 12% 10% 0.2 8% 0.1 0.1 6% 0.0 4% -0.1-0.1 2% -0.2 0% 09 10 11 12 13 14 15 16 17 Net Absorption Deliveries Vacancy Rate 1.60 1.40 1.20 1.00 0.80 0.60 0.40 0.20 0.00 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Vacancy Rate Q1 Q2 Q3 Q4 Outlook Overall, the Bethesda/Chevy Chase submarket is positioned for a market resurgence, with multiple buildings in the construction pipeline and healthy preleasing at very strong rents already underway for many of them. Given the submarket s strong amenity base, Metro access to both the existing Red Line and a future Purple Line station, and a broad tenant base of professional and business services, the new deliveries will continue to attract tenants from across the region. This is evident in Marriott s decision to relocate its headquarters to the market, and Booz Allen Hamilton and Host Hotels committing to leases in Bethesda from other submarkets. Additionally, with one of the lowest vacancy rates in the region and no new deliveries set to hit the market until mid-2019, the Bethesda/Chevy Chase submarket is expected to remain landlord-favorable for the next 12 to 18 months. Full Service PSF $55 $50 $45 $40 $35 $30 $25 2009 2010 2011 2012 2013 2014 2015 2016 Q4 2017 Class A Class B, $ PSF cushmanwakefield.com 7

Rock Spring Park Market Indicators *Arrows = Current Qtr Trend Vacancy 24.8% Net Absorption 188,515 SF Under Construction Deliveries $29.70 As it did during the first half of the year, Rock Spring Park continued to see improving, albeit still soft, market fundamentals through the fourth quarter of 2017. New leasing activity for the quarter was comprised of small and mid-sized tenants. The largest lease of the quarter was that of the Make a Wish Foundation, which signed for 11,464 square feet (sf) at 10401 Fernwood Road. In all, total new leasing activity for the fourth quarter of 2017 totaled 19,342 sf, which helped bring the year-to-date new leasing to 68,151sf. That wasn t quite enough, however, to top 2016 s total of 128,116 sf, registering a 39% decrease year-over-year. Year-to-date overall net absorption remained positive, closing the year at 188,515 sf. Most of that absorption was due to the National Institutes of Health (NIH) vacating from 5635 Fishers Lane and relocating to 6700 Rockledge Drive in the first quarter. Net Absorption Deliveries Vacancy 0.3 0.2 0.2 0.1 0.1 0.0-0.1-0.1-0.2-0.2 09 10 11 12 13 14 15 16 17 Net Absorption Deliveries Vacancy Rate 35% 30% 25% 20% 15% 10% 5% 0% Vacancy Rate The substantial positive absorption in the market contributed to a decline in overall vacancy rates which closed the fourth quarter of 2017 at 24.8% down 430 basis points (bps) year-over-year. With Suburban Maryland as a whole posting an average overall vacancy rate of 19.4%, however, Rock Spring Park continued to face market softness, particularly as older, less-amenitized office parks struggle to compete against the Metro-accessible locations tenants continue to seek. Given elevated vacancy rates, overall asking rents dipped 1.8%, closing the fourth quarter of 2017 at $29.80 per square foot (psf). Despite above market vacancy, asking rents in Rock Spring Park remained on par with Montgomery County s average of $29.20 psf, and well above Suburban Maryland s average of $26.85 psf. Overall Class A asking rents in Rock Spring Park averaged $30.58 psf for the fourth quarter, slightly below the county average of $31.52 psf, signaling an opportunity for tenants to find quality space at competitive price points. New Leasing Activity 0.20 0.18 0.16 0.14 0.12 0.10 0.08 0.06 0.04 0.02 0.00 2012 2013 2014 2015 2016 2017 Q1 Q2 Q3 Q4 Outlook Overall, the Rock Spring Park submarket continues to tighten, though slowly, as small and mid-sized tenants help to chip away at remaining vacancy. With the Marriott Headquarters slated for residential, the risk of new office vacancy coming online following the hotelier s relocation to the Bethesda/Chevy Chase submarket is mitigated. Additionally, the market should see an increase in the population base as the new residential comes along, and along with it, more amenities to further attract tenants from both the public and private sectors. With no new construction in the pipeline vacancy rates should remain in check and asking rents holding. Full Service PSF $36 $34 $32 $30 $28 $26 $24 $22 $20 2011 2012 2013 2014 2015 2016 Q4 2017 Class A, $ PSF Class B, $ PSF Cushman & Wakefield 8

Pike Corridor Market Indicators *Arrows = Current Qtr Trend Vacancy 17.9% Net Absorption (96,725 SF) Under Construction Deliveries $28.30 FS Market fundamentals in the Pike Corridor submarket were varied throughout the fourth quarter of 2017. Year-to-date new leasing activity picked up during the quarter, closing at just under 338,943 square feet (sf) a 75.7% increase from the third quarter. The largest lease of the quarter was signed by the General Services Administration (GSA) on behalf of the National Institutes of Health for a 90,000-sf renewal at 2115 East Jefferson Street. The largest new lease was executed by The American Physiological Society (APS), which committed to just over 30,000 sf at 6120 Executive Boulevard. Despite strong leasing activity, year-to-date net absorption still registered at negative 96,725 sf at the close of the fourth quarter of 2017. It should be noted, however, that this was due to several tenants vacating the submarket during the first half of the year: Dixon Hughes vacated 24,849 sf at Rockville Pike, the FDA vacated 10,000 sf at 1 Church Street, and Montgomery County s consolidation from 47,322 sf at 40 West Gude Drive. Overall vacancy rates closed the fourth quarter of 2017 at 17.9% a 110-basis-point (bps) increase year-over-year. Pike Corridor s fourth quarter vacancy matched the overall average vacancy for Montgomery County, and 150 bps lower than Suburban Maryland s average as a whole. While vacancy has declined, overall asking rents for all classes have remained in check, closing the fourth quarter of 2017 at $28.30 per square foot (psf). The overall average rent for Class A product closed the quarter at $30.05 psf, in line with Suburban Maryland s overall Class A average of $30.16 psf. Net Absorption Deliveries Vacancy 1.0 0.5 0.0-0.5-1.0-1.5 10 11 12 13 14 15 16 17 Net Absorption Deliveries Vacancy Rate New Leasing Activity 1.60 1.40 1.20 1.00 0.80 0.60 0.40 0.20 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% Vacancy Rate 0.00 2010 2011 2012 2013 2014 2015 2016 2017 Q1 Q2 Q3 Q4 Outlook The Pike Corridor submarket started to experience some improvements in its market fundamentals through the fourth quarter of 2017. The area remains well-positioned to attract tenants, particularly as construction of the Pike & Rose mixed-use development comes to an end, bringing with it retail and residential options to the area. With the growing demand for amenity-heavy and Metro-accessible locations, vacancy rates are expected to continue decreasing over the next 18 to 24 months, which will help to keep asking rents elevated. Full Service PSF $36 $34 $32 $30 $28 $26 $24 $22 $20 2012 2013 2014 2015 2016 Q4 2017 Class A Class B, $ PSF cushmanwakefield.com 9

I-270/Rockville Market Indicators *Arrows = Current Qtr Trend Vacancy 23.0% Net Absorption 250,494 SF Under Construction Deliveries $28.34 Similar to trends in the first half of the year, the 1-270/Rockville submarket continued to see diverging market fundamentals throughout the fourth quarter of 2017. New leasing activity decreased by 43.0% year-over-year, with year-to-date new leasing closing the fourth quarter of 2017 at 372,206 square feet (sf). There were, however, several noteworthy leases greater than 10,000 square feet (sf). The largest new lease of the quarter was signed by Oil Price Information Service (OPIS) for 36,599 sf at 2099 Gaither Road; the second-largest signed by Skanska for 14,918 sf at 700 King Farm. Despite the decline in new leasing activity, year-to-date net absorption remained positive, closing the fourth quarter of 2017 at 250,494 sf. This was particularly noteworthy given that the I-270/Rockville submarket registered 50,471 sf of positive absorption in 2016. Given the significant positive absorption, vacancy rates declined 150 basis points (bps) from the fourth quarter of 2016, closing the fourth quarter of 2017 at 23.0%. Vacancy in the I-270/ Rockville submarket was 510 bps higher than Montgomery County s vacancy rate of 17.9%. Net Absorption Deliveries Vacancy 0.4 0.3 0.2 0.1 0.0-0.1-0.2-0.3-0.4-0.5 09 10 11 12 13 14 15 16 17 Net Absorption Deliveries Vacancy Rate New Leasing Activity 30% 25% 20% 15% 10% 5% 0% Vacancy Rate With vacancy rates declining and positive net absorption, landlords have continued to push asking rents. Overall asking rents closed the fourth quarter at $28.35 per square foot (psf) a 3.0% increase year-over-year. 0.70 0.60 0.50 0.40 0.30 0.20 0.10 0.00 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Q1 Q2 Q3 Q4 Outlook New construction remains limited in the I-270/Rockville submarket which will help keep vacancy rates in check. However, with increasing consumer demand for walkable, mixed-use environments and Metro-proximate locations, the I-270/Rockville submarket could be a competitive alternative for tenants seeking large blocks of space in amenitized locations while seeking cost-effective options. Full Service PSF $36 $34 $32 $30 $28 $26 $24 $22 $20 2009 2010 2011 2012 2013 2014 2015 2016 Q4 2017 Class A Class B, $ PSF Cushman & Wakefield 10

Gaithersburg/Germantown Market Indicators *Arrows = Current Qtr Trend Vacancy 20.2% Net Absorption 20,588 SF Under Construction Deliveries $24.02 Market fundamentals in the Gaithersburg and Germantown submarkets remained stable through the fourth quarter of 2017. Both submarkets experienced sluggish new leasing activity during the quarter. Year-to-date new leasing activity in Gaithersburg closed the quarter at 35,062 square feet (sf) a 31.0% decrease year-over-year. With no new leasing activity recorded in Germantown during the quarter, new leasing activity year-to-date was unchanged from that in the third quarter of the year at 18,924 sf. Indeed, the majority of new leasing activity for Germantown during 2017 occurred in the third quarter. The most notable lease of the quarter was signed by Deleon Stang for 9,000 sf at 100 Lakeforest Boulevard in Gaithersburg. Despite Gaithersburg s quiet leasing activity in the fourth quarter of 2017, overall net absorption remained stable, closing the quarter with positive 15,504 sf and accounting for 20.3% of Montgomery County s total absorption in 2017. Vacancy rates continued to hold, closing the fourth quarter of 2017 at 21.6%, 220 basis points (bps) above Suburban Maryland s overall average vacancy rate of 19.4%. As office parks continue to struggle with the increasing demand for Metro-proximate locations, vacancy rates could continue to rise. Rental rates remained in check, with overall asking rents for all classes closing the fourth quarter of 2017 at $24.37 per square foot (psf). Net Absorption Deliveries Vacancy 0.3 0.2 0.2 0.1 0.1 0.0-0.1-0.1-0.2 09 10 11 12 13 14 15 16 17 Net Absorption Deliveries Vacancy Rate New Leasing Activity 0.25 0.20 25% 20% 15% 10% 5% 0% Vacancy Rate 1 Germantown closed the fourth quarter of 2017 with 5,084 sf of positive absorption, resulting in 51,545 sf of positive absorption year-to-date, most of which was registered in the third quarter. Given positive absorption, overall vacancy declined 370 bps year-over-year, locking in the fourth quarter of 2017 at 18.7%. Germantown vacancy remains 70 bps lower than Suburban Maryland s overall average vacancy of 19.4%. With vacancy rates declining, rental rates increased, closing the fourth quarter of 2017 at $24.66 psf a 1.0% uptick from the fourth quarter of 2016. In comparison to Montgomery County s overall average asking rent of $29.20, average rents in Germantown remain among the lowest in the County. 0.15 0.10 0.05 0.00 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Q1 Q2 Q3 Q4 Outlook Leasing activity remained slow in both submarkets throughout 2017. Vacancy rates in Germantown declined and remained flat in Gaithersburg; however, with new leasing activity remaining stagnant and no new construction in the pipeline, vacancy rates should remain in check for both submarkets. As the demand continues to shift towards more amenitized, Metro-proximate locations, market fundamentals in the Gaithersburg and Germantown submarkets could struggle. But for those tenants that are looking for space at a lower price point in Montgomery County, Germantown and Gaithersburg are competitive options. Full Service PSF $29 $27 $25 $23 $21 $19 $17 $15 2011 2012 2013 2014 2015 2016 Q42017 Class A Class B, $ PSF cushmanwakefield.com 11

Silver Spring Market Indicators *Arrows = Current Qtr Trend Vacancy 12.6% Net Absorption (-512 SF) Under Construction Deliveries $29.35 Silver Spring experienced mixed market fundamentals throughout the fourth quarter of 2017. Year-to-date new leasing activity registered 173,727 square feet (sf), an uptick of 11.5% year-overyear, although the majority of new leasing was recorded in the first half of the year. Small and mid-sized tenants accounted for all the leasing activity during the fourth quarter, as there were no leases executed for more than 10,000 sf. There were, however, a couple of small and mid-sized tenants that relocated from the submarket, resulting in negative year-to-date absorption which closed the fourth quarter of 2017 at a barely audible negative 512 sf. Overall vacancy rates closed the fourth quarter of 2017 at 12.6% a 110-basis-point (bps) increase year-over-year. Despite the increase, Silver Spring still registered the second-lowest vacancy rate among all Suburban Maryland submarkets: 530 bps lower than Montgomery County s overall vacancy of 17.9% and 680 bps lower than Suburban Maryland s vacancy of 19.4%. Overall asking rents, which continued to hold near the $29.00 per square foot (psf) mark, closed the fourth quarter of 2017 at $29.35 psf. Net Absorption Deliveries Vacancy 2.00 1.50 1.00 0.50 0.00-0.50 10 11 12 13 14 15 16 17 Net Absorption Deliveries Vacancy Rate New Leasing Activity 13% 12% 11% 10% 9% 8% Vacancy Rate 0.40 0.35 0.30 0.25 0.20 0.15 0.10 0.05 0.00 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Q1 Q2 Q3 Q4 Outlook With the noteworthy announcement of Discovery Communications relocating its headquarters to New York City in 2019, the Silver Spring submarket could see a significant increase in vacancy and a decline in absorption with the 545,000 sf of vacant space coming online. But with Silver Spring s strong amenity base and Metro-accessibility, as well as proximity to the District of Columbia, it will remain an attractive option for tenants that begin to be pushed out of the more landlord-favorable Bethesda/Chevy Chase submarket. With the addition of Metro s now-underway Purple Line, Silver Spring will be further connected to the western Suburban Maryland submarket, continuing to provide tenants the accessibility that they currently demand. This, combined with a rare very large block of existing quality space, will add the Discovery headquarters space to the short list of any large tenant requirements looking for space regionally. Full Service PSF $38 $36 $34 $32 $30 $28 $26 $24 $22 $20 2009 2010 2011 2012 2013 2014 2015 2016 Q4 2017 Class A Class B, $ PSF Cushman & Wakefield 12

Prince George s County Market Indicators *Arrows = Current Qtr Trend Vacancy 24.5% Net Absorption 205,054 SF Under Construction 825,464 SF Deliveries 251,00 $21.40 The Prince George s County submarket experienced healthy market fundamentals throughout the fourth quarter of 2017. Year-to-date new leasing activity closed the quarter at just over 1.7 million square feet (msf) a 47.1% increase from the fourth quarter of 2016, although the majority of new leasing activity occurred in the first three quarters of the year. Throughout the fourth quarter, there were a handful of renewals and mid-sized leases. The largest new lease of the quarter was that of the National Center for Children and Families (NCCF) which signed for 12,616 square feet (sf) at 6404 Ivy Lane. The United States Federal Emergency Management Agency (FEMA) captured the largest renewal of the quarter for 54,000 sf at 6511 American Boulevard. Such healthy leasing activity resulted in positive overall year-to-date- net absorption of 205,054 sf a year-overyear increase of 31.6% 75,165 sf of which occurred in the fourth quarter. Given such positive absorption, overall vacancy closed the fourth quarter of 2017 at 24.5% a 380-basis-point (bps) decrease yearover-year. Overall vacancy in Prince George s County was 510 bps higher than Suburban Maryland s overall vacancy rate of 19.4%. The two tightest submarkets in Prince George s County were Landover/Landham and Bowie which had vacancy rates of 19.6% and 18.4%, respectively, in the fourth quarter. At the close of the quarter the highest vacancy rates were in Beltsville/College Park (27.5%) and Greenbelt (30.7%), 300 bps and 620 bps higher, respectively, than the County s overall average. Overall asking rents in Prince George s County, which continued to hold near the $21.00 per square foot (psf) mark, closed the fourth quarter of 2017 at $21.40 psf. The County s overall average asking rate fell $5.45 below Suburban Maryland s overall average asking rent of $26.85 psf for the quarter. The overall average asking rent for Class A buildings closed the quarter at $23.57 psf, a 4.9% increase year-over-year. Beltsville/College Park boasts the highest rental rate in the County, closing the fourth quarter at $22.26 psf, but rents could continue to rise since construction on Metro s Purple Line has begun. There were no new deliveries in the fourth quarter of the year; however, there are a couple buildings in the pipeline. Construction continues at 5801 Research Court in College Park: a 75,000-sf, Class A speculative project slated to deliver in the fourth quarter of 2018. Built-to-suit opportunities have continued to attract tenants, as is evident with Kaiser Permanente s 176,000 sf building at 4000 Garden City drive and the DHS/CIS headquarters at One Town Center, both currently underway. Net Absorption Deliveries Vacancy 0.4 0.3 0.2 0.1 0.0-0.1-0.2-0.3-0.4-0.5-0.6 07 08 09 10 11 12 13 14 15 16 17 Net Absorption Deliveries Vacancy Rate New Leasing Activity THSF 32% 28% 24% 20% 16% 12% 8% 4% 0% 1,400.00 1,200.00 1,000.00 800.00 600.00 400.00 200.00 0.00 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Q1 Q2 Q3 Q4 Vacancy Rate Outlook With the pipeline of new construction and the Metro Purple Line underway, Prince George s County is well-positioned to attract tenants. When the Purple Line delivers in 2020 it will connect College Park to the western Suburban Maryland submarket. As tenants seek out Metro-proximate locations, College Park becomes a new viable option for tenants that are looking to leave the more landlordfavorable Bethesda/ Chevy Chase submarket. As 5801 University Research Court gets closer to delivering and no preleasing occurs, the market can expect to see a rise in vacancy with 75,000 sf of inventory coming online. In addition, it is clear that as the federal government continues to seek locations that offer a value compared to traditional enclaves, Prince George s County should continue to be a net beneficiary of GSA consolidations. Full Service PSF $25 $24 $23 $22 $21 $20 $19 $18 2011 2012 2013 2014 2015 2016 Q4 2017 Class A Class B, $ PSF cushmanwakefield.com 13

Frederick County Market Indicators *Arrows = Current Qtr Trend Vacancy 17.3% Net Absorption (420,919 SF) Under Construction Deliveries $15.21 Frederick County continued to experience diverse market fundamentals through the fourth quarter of 2017. Year-to-date new leasing activity closed the quarter at 128,016 square feet (sf). Most new leasing activity was recorded in the first two quarters of 2017 thanks in large part to CSRA leasing 33,360 sf at 110 Thomas Johnson Drive and Asbury Communities taking 26,380 sf at 5285 Westview Drive. The largest lease of the fourth quarter was signed by an undisclosed tenant for 2,020 sf at 5301 Buckeystown Pike. Given sluggish leasing activity, quarter-to-date absorption closed the fourth quarter of 2017 at a slightly negative 3,430 sf. There were a handful of small move-outs that contributed, and with limited, large new-to-market tenant s future absorption activity is expected to remain relatively flat. Overall vacancy closed the fourth quarter of 2017 at 17.3% a 10-basis-point (bps) increase quarter-over-quarter. Class A vacancy remained significantly tighter, closing the fourth quarter at 13.0% 500 bps lower than Class A vacancy in Montgomery County and 720 bps lower than Class A vacancy in Prince George s County. Average rents for all classes in Frederick County closed the fourth quarter of 2017 at $15.21 per square foot (psf) a 1.4% increase quarter-over-quarter. Class A overall average asking rent was $22.00 psf at the close of the quarter, $8.16 lower than Suburban Maryland s overall Class A average of $30.16 psf. Net Absorption Deliveries Vacancy 0.1 0.0-0.1-0.2-0.3-0.4-0.5 11 12 13 14 15 16 17 Net Absorption Deliveries Vacancy Rate New Leasing Activity THSF 500.00 450.00 400.00 350.00 300.00 250.00 200.00 150.00 100.00 50.00 28% 24% 20% 16% 12% 8% 4% 0% Vacancy Rate 0.00 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Q1 Q2 Q3 Q4 Outlook With the growing trend toward live-work-play environments, and considering Frederick County s lack of accessibility to Metro as well as its distance from Washington, DC, the market could see vacancy rates increase as tenants look to seek out more amenity rich submarkets. However, Frederick County s affordable rental rates make the submarket a viable option for tenants looking to lease a large amount of space at low rental rates. Full Service PSF $30 $25 $20 $15 $10 $5 $0 2011 2012 2013 2014 2015 2016 Q4 2017 Class A Class B, $ PSF Cushman & Wakefield 14

Appendix Metro Washington Office Market Summary: Fourth Quarter 2017p Table Summaries Inventory Total Vacant Space Vacancy Rate Q 2017 Absorption Year to Date Absorption Metro Washington Office Market Summary 15 Washington, DC 13, 12. % Northern Virginia 2 20. % Employment Data 15 Office Availability, Vacancy, 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 21-23 Methodology & Definitions 24 Suburban Maryland 59, 1 % Regional Totals 5 17. % Metro Washington Current Employment Data Nonfarm Employment (Jan- 2016) Nonfarm Employment (Jan- 2017p) Jobs Added/ Lost* Percent Change Washington, DC 78 1. % Northern Virginia 1,433,7 1. % Suburban Maryland 9 1,0 2. % Regional Totals 3 3,2 1.6% SOURCE: U.S. Bureau of Labor Statistics (Not seasonally adjusted) * Average per year to date p - preliminary cushmanwakefield.com 15

Appendix Office Availability, Vacancy, and Net Absorption, Fourth Quarter 2017p Total Inventory New/Relet Space Vacant Sublet Space Vacant Total Space Vacant Vacancy Rate (%) New/Relet Space Absorption Sublet Space Absorption Total Net Absorption Bethesda/Chevy Chase (22) 8,523,023 709,536 211,072 920,608 10.8% 24,240 (115,694) (91,454) Rock Spring Park (23) 4,165,404 1,018,671 13,809 1,032,480 24.8% 181,591 6,924 188,515 Pike Corridor (1) 11,103,061 1,875,697 112,562 1,988,259 17.9% (90,447) (6,278) (96,725) I-270 Rockville (20) 9,345,162 2,030,881 121,427 2,152,308 23.0% 284,896 (34,402) 250,494 Gaithersburg (24) 2,187,015 470,072 1,282 471,354 21.6% 36,229 34,131 70,360 Germantown (21) 1,852,930 342,662 3,000 345,662 18.7% 49,929 1,616 51,545 Silver Spring (2) 4,877,684 565,815 47,004 612,819 12.6% 12,688 (13,200) (512) North Silver Spring (25) 1,055,127 200,116 0 200,116 19.0% (25,700) 0 (25,700) Montgomery County 43,109,406 7,213,450 510,156 7,723,606 17.9% 473,426 (126,903) 346,523 Prince George's County 13,424,160 3,256,351 33,508 3,289,859 24.5% 165,656 39,398 205,054 Frederick County 2,861,724 462,341 33,508 495,849 17.3% (387,411) (33,508) (420,919) Total 59,395,290 10,932,142 580,395 11,512,537 19.4% 251,671 (121,013) 130,658 p - preliminary Cushman & Wakefield 16

Appendix Trailing 12-Month Data Total Inventory Vacancy Rate (%) Total Absorption 1st Qtr 2017 2nd Qtr 2017 3rd Qtr 2017 4th Qtr 2017 1st Qtr 2017 2nd Qtr 2017 3rd Qtr 2017 4th Qtr 2017 1st Qtr 2017 2nd Qtr 2017 3rd Qtr 2017 4th Qtr 2017 Bethesda/Chevy Chase 8,641,418 8,641,418 8,523,023 8,523,023 9.5% 10.4% 9.8% 10.8% 8,246 (125,061) 55,407 (30,046) Rock Spring Park 4,189,001 4,189,001 4,165,404 4,165,404 25.8% 25.1% 25.0% 24.8% 151,052 28,416 (50) 9,097 Pike Corridor 11,079,464 11,079,464 11,103,061 11,103,061 17.0% 18.5% 18.4% 17.9% (64,902) (65,525) 14,530 19,172 I-270/Rockville 9,388,900 9,340,900 9,345,162 9,345,162 23.3% 23.3% 23.2% 23.0% 294,020 (58,368) (1,020) 15,862 Gaithersburg 2,022,113 2,187,015 2,187,015 2,187,015 15.2% 21.7% 22.3% 21.6% 69,921 (3,808) (11,257) 15,504 Germantown 1,908,759 1,852,930 1,852,930 1,852,930 21.1% 20.9% 18.9% 18.7% 6,952 3,135 36,374 5,084 Silver Spring 4,877,684 4,877,684 4,877,684 4,877,684 11.0% 12.1% 12.1% 12.6% 14,648 (13,572) 22,252 (23,840) North Silver Spring 1,055,127 1,055,127 1,055,127 1,055,127 21.2% 18.4% 19.7% 19.0% (48,993) 29,169 (13,481) 7,605 Montgomery County 43,162,466 43,223,539 43,109,406 43,109,406 17.2% 18.1% 17.9% 17.9% 430,944 (205,614) 102,755 18,438 Prince George's County 13,423,645 13,423,745 13,423,645 13,424,160 27.2% 25.4% 25.1% 24.5% 102,993 (3,693) 30,589 75,165 Frederick County 2,745,520 2,796,420 2,861,724 2,861,724 19.3% 19.0% 17.2% 17.3% (456,691) 351 38,851 (3,430) Suburban Maryland 59,331,631 59,443,704 59,394,775 59,395,290 19.6% 19.8% 19.5% 19.4% 77,246 (208,956) 172,195 90,173 p - preliminary cushmanwakefield.com 17

Appendix Historical Year-End Data Total Inventory Vacancy Rate (%) Total Absorption 2014 2015 2016 2017 2014 2015 2016 2017 2014 2015 2016 2017 Bethesda/Chevy Chase 8,612,795 8,612,795 8,612,795 8,523,023 12.9% 13.1% 9.7% 10.8% (44,478) (26,319) 128,324 (91,454) Rock Spring Park 4,055,404 4,079,001 4,240,001 4,165,404 25.0% 28.2% 29.1% 24.8% (58,558) (4,608) 19,722 188,515 Pike Corridor 10,693,270 10,772,914 10,876,464 11,103,061 21.8% 16.9% 16.8% 17.9% (30,994) 93,969 (137,641) (96,725) I-270/Rockville 9,488,710 9,536,528 9,620,139 9,345,162 24.5% 24.2% 24.5% 23.0% 29,088 134,427 282,841 250,494 Gaithersburg 2,122,113 2,157,113 2,157,113 2,187,015 21.9% 21.0% 21.3% 21.6% 30,895 16,517 (31,550) 70,360 Germantown 1,908,759 1,908,759 1,908,759 1,852,930 23.6% 24.2% 21.4% 18.7% 24,654 13,268 8,920 51,545 Silver Spring 4,806,040 4,806,040 4,877,684 4,877,684 10.5% 12.2% 11.5% 12.6% 3,421 (3,332) 21,657 (512) North Silver Spring 1,055,127 1,055,127 1,055,127 1,055,127 23.2% 24.9% 19.6% 19.0% (7,518) 1,259 20,653 (25,700) Montgomery County 42,742,218 42,928,277 43,348,082 43,109,406 19.8% 19.0% 18.2% 17.9% (53,490) 225,181 312,926 346,523 Prince George's County 13,417,890 13,515,386 13,423,645 13,424,160 24.7% 28.2% 28.3% 24.5% (57,646) (6,124) 145,440 205,054 Frederick County N/A N/A N/A 2,861,724 N/A N/A N/A 17.3% N/A N/A N/A (420,919) Suburban Maryland 56,160,108 56,443,663 56,771,727 59,395,290 21.0% 21.2% 20.6% 19.4% (111,136) 219,057 458,366 130,658 p - preliminary Cushman & Wakefield 18

Market Statistics Suburban Maryland 4th Quarter 2017 Market Statistics Buildings Total Inventory (SF) New/Relet Vacancy (%) Sublet Vacancy (%) Total Vacancy* (%) Net Absorption Current QTR (SF) Under Construction (SF) Average (FS) Bethesda/Chevy Chase Class A 22 5,177,706 24.5% 2.6% 9.4% ( 35,416) 626,020 $41.08 B 26 2,640,140 11.7% 2.6% 13.1% 3,518 0 $33.97 C 15 705,177 10.7% 0.4% 12.1% 1,852 0 $30.20 TOTAL 64 8,523,023 8.3% 2.5% 10.8% (30,046) 626,020 $41.08 Rock Spring Park Class A 13 3,050,815 24.5% 0.5% 25.0% (4,230) 0 $30.58 B 8 953,589 26.4% 0.0% 26.4% 13,327 0 $27.56 C 1 161,000 11.0% 0.0% 11.0% 0 0 $20.00 TOTAL 22 4,165,404 24.5% 0.3% 24.8% 9,097 0 $28.34 Pike Corridor Class A 33 5,294,799 19.0% 0.1% 19.1% (3,492) 0 $31.05 B 46 4,947,208 15.8% 2.1% 17.9% 349 0 $26.66 C 16 861,054 10.5% 0.0% 10.5% 22,315 0 $18.41 TOTAL 95 11,103,061 16.9% 1.0% 17.9% 19,172 0 $28.30 I-270/Rockville Class A 46 6,608,313 20.6% 1.6% 22.2% ( 15.982) 0 $30.73 B 31 2,567,028 24.2% 0.7% 24.9% 29,190 0 $22.59 C 3 169,821 27.2% 0.0% 27.2% 2,654 0 $24.66 TOTAL 80 9,345,162 21.7% 1.3% 23.0% 15,862 0 $28.34 Gaithersburg Class A 6 605,663 17.8% 0.1% 18.0% (129) 0 $24.37 B 16 1,021,105 16.0% 0.0% 16.1% 15,304 0 $23.62 C 11 560,247 35.4% 0.0% 35.4% 329 0 $15.94 TOTAL 34 2,187,015 21.5% 0.1% 21.6% 15,504 0 $23.47 Germantown Class A 5 662,740 17.9% 0.5% 18.4% 0 0 $27.86 B 17 1,190,190 18.8% 0.0% 18.8% 5,084 0 $22.32 C 0 0 0.0% 0.0% 0.0% 0 0 N/A TOTAL 22 1,852,930 18.5% 0.2% 18.7% 5,084 0 $24.66 * Total Vacancy - the vacancy rate is calculated using the combined total of relet, sublet and new vacant space. cushmanwakefield.com Cushman & Wakefield 18 19

Market Statistics Suburban Maryland 2nd 4th Quarter Quarter 2017 2017 Market Market Statistics Statistics Buildings Total Inventory (SF) New/Relet Vacancy (%) Sublet Vacancy (%) Total Vacancy* (%) Net Absorption Current QTR (SF) Under Construction (SF) Average (FS) Silver Spring Class A 14 2,901,148 13.6% 1.5% 15.1% ( 18,109) 0 $30.52 B 7 973,764 7.7% 0.0% 7.7% 6,994 0 $26.96 C 16 1,002,772 9.6% 0.5% 10.0% (12,725) 0 $23.89 TOTAL 37 4,877,684 11.6% 1.0% 12.6% (23,840) 0 $29.35 North Silver Spring Class A 4 222,322 2.3% 0.0% 2.3% 0 0 N/A B 16 832,805 23.4% 0.0% 23.4% 7,605 0 $24.21 C 0 0 0.0% 0.0% 0.0% 0 0 N/A TOTAL 20 1,055,127 19.0% 0.0% 19.0% 7,605 0 $24.21 Prince George s County Class A 39 4,592,560 20.2% 0.0% 20.2% 47,964 825,767 $23.57 B 135 7,200,545 27.7% 0.5% 27.7% 12,832 0 $20.53 C 54 1,631,055 22.5% 0.0% 22.5% 14,369 0 $19.82 TOTAL 228 13,424,160 24.3% 0.2% 24.5% 75,165 825,767 $21.40 Frederick County Class A 14 1,737,465 13.0% 0.0% 13.0% (1,520) 0 $22.00 B 20 1,124,259 21.0% 3.0% 24.0% (1,910) 0 $12.81 C 0 0 0.0% 0.0% 0.0% 0 0 N/A TOTAL 34 2,861,724 16.2% 1.1% 17.3% (3,430) 0 $15.21 Suburban Maryland Class A 196 30,853,531 17.0% 1.0% 18.0% ( 30,914) 1,451,787 $30.16 B 322 23,450,633 20.4% 1.1% 21.5% 92,293 0 $23.66 C 122 5,091,126 17.7% 0.1% 17.8% 28,794 0 $22.02 TOTAL 640 59,395,290 18.4% 1.0% 19.4% 90,173 1,451,787 $26.85 * Total Vacancy - the vacancy rate is calculated using the combined total of relet, sublet and new vacant space. cushmanwakefield.com Cushman & Wakefield 20 19

Suburban Maryland Survey of Office Space Under Construction/Under Renovation Bethesda/Chevy Chase MAJOR PERCENT AVAILABLE RENTABLE BUILDING ADDRESS OWNER/DEVELOPER RENTAL RATE STATUS DELIVERY DATE TENANTS LEASED SPACE BUILDING AREA JBG Smith, Booze Allen Hamilton, Host Hotels 4747 Bethesda Avenue JBG Smith N/A U/C 3Q19 281,020 81,020 71% 7272 Wisconsin Avenue Carr Properties N/A U/C 3Q20 345,000 345,000 0% Total 626,020 426,020 71% Beltsville/College Park MAJOR TENANTS PERCENT LEASED AVAILABLE SPACE RENTABLE BUILDING ADDRESS OWNER/DEVELOPER RENTAL RATE STATUS DELIVERY DATE BUILDING AREA 5801 University Research Court University of Maryland $34.00 U/C 4Q18 75,000 75,000 0% Total 75,000 75,000 0% Landover/Lanham MAJOR PERCENT AVAILABLE RENTABLE BUILDING ADDRESS OWNER/DEVELOPER RENTAL RATE STATUS DELIVERY DATE TENANTS LEASED SPACE BUILDING AREA N/A U/C 4Q18 176,000 0 100% Kaiser Permanente Washington Metro Area Transit Authority JV Urban Atlantic 4000 Garden City Drive/ Kaiser Permanente Total 176,000-100% Oxon Hill/Suitland MAJOR PERCENT AVAILABLE RENTABLE BUILDING ADDRESS OWNER/DEVELOPER RENTAL RATE STATUS DELIVERY DATE TENANTS LEASED SPACE BUILDING AREA CIS Headquarters, Department of Homeland Peter N.G. Schwartz N/A U/C 1Q20 574,767 0 100% One Town Center @ One Capital Gateway Drive Security Total 574,767-100% Status Operating Expense and Real Estate Tax Base FS = Full Service N = Plus Electric NNN = Net of all Operating Expenses and Taxes NN = Plus Electric & Char NT = Plus Taxes N/A = No Space Available U/C = Under Construction U/R = Under Renovation cushmanwakefield.com 21

Surburban Maryland Summary of Office Space Under Construction/Under Renovation PERCENT LEASED AVAILABLE SPACE RENTABLE SUMMARY BUILDING AREA 2017 Deliveries 0 0 0% 2018 Deliveries 251,000 75,000 30% 2019 Deliveries 281,020 81,020 71% 2020 Deliveries 919,767 345,000 60% TOTAL 1,451,787 501,020 35% Status Operating Expense and Real Estate Tax Base FS = Full Service N = Plus Electric NNN = Net of all Operating Expenses and Taxes NN = Plus Electric & Char NT = Plus Taxes N/A = No Space Available U/C = Under Construction U/R = Under Renovation Cushman & Wakefield 22

Surburban Maryland Survey of New Office Space 2017 Deliveries PERCENT LEASED UPON DELIVERY VACANCY RATE (AS OF CURRENT QUARTER) NEW AVAILABLE SPACE RENTABLE BUILDING ADDRESS OWNER/DEVELOPER STATUS RENTAL RATE SUBMARKET BUILDING AREA 2016 Deliveries PERCENT LEASED UPON DELIVERY VACANCY RATE (AS OF CURRENT QUARTER) NEW AVAILABLE SPACE RENTABLE BUILDING ADDRESS OWNER/DEVELOPER STATUS RENTAL RATE SUBMARKET BUILDING AREA 12358 Parklawn Drive Greencourt Porperty Group Delivered 4Q16 N/A Pike Corridor 103,550 103,502 87% 0% Foulger Pratt/Foulger Pratt 12435 Park Potomac Ave Delivered 1Q16 N/A I-270/Rockville 156,000 84,107 50% 13% Companies Total 259,550 187,609 72% 63% 2015 Deliveries PERCENT LEASED UPON DELIVERY VACANCY RATE (AS OF CURRENT QUARTER) NEW AVAILABLE SPACE RENTABLE BUILDING ADDRESS OWNER/DEVELOPER STATUS RENTAL RATE SUBMARKET BUILDING AREA 11810 Grand Park Ave Federal Realty Investment Trust Delivered 1Q15 N/A Pike Corridor 79,644 79,644 0% 50% 7800 Hankins Road Berman Enterprises Delivered 3Q15 N/A Landover/Lanham 110,000 0 0% 100% Total 1,732,713 577,913 2014 Deliveries PERCENT LEASED UPON DELIVERY VACANCY RATE (AS OF CURRENT QUARTER) NEW AVAILABLE SPACE RENTABLE BUILDING ADDRESS OWNER/DEVELOPER STATUS RENTAL RATE SUBMARKET BUILDING AREA 5601 Fishers Lane JBG Smith Delivered 1Q14 N/A Pike Corridor 490,998 0% 100% Bethesda/Chevy 226,352 9% 12% 4500 East West Highway Carr/The Clarett Group Delivered 4Q14 N/A Chase Beltsville/College 111 19th Street Association Ltd 57,000 0% 88% Delivered 1Q14 N/A 7000 Mulkirk Road Park Partnership/Konterra Realty Total 774,350 0% 47% Status Operating Expense and Real Estate Tax Base FS = Full Service N = Plus Electric NNN = Net of all Operating Expenses and Taxes NN = Plus Electric & Char NT = Plus Taxes N/A = No Space Available U/C = Under Construction U/R = Under Renovation cushmanwakefield.com 23

Methodology & Definitions Methodology Market statistics are calculated from a base building inventory made up of office properties deemed to be competitive in the typical Washington, DC office market. Single-tenant buildings and privately-owned buildings in which the federal government leases space are included. Generally, owneroccupied and federally-owned buildings are not included. Older buildings unfit for occupancy or ones that require substantial renovation before tenancy are generally not included in the competitive inventory. Vacant space is defined as space that is physically vacant and available immediately. Sublet space still occupied by the tenant is not counted as vacant space. Explanation of Terms Total Inventory: The total amount of office space (in buildings greater than 10,000 square feet) that can be rented by a Fourth party. New Space Vacant: First generation, never-occupied office space in newly constructed or substantially renovated buildings, being actively marketed by a landlord. Relet Space Vacant: Secondgeneration, unoccupied office space being actively marketed by a landlord. (Space that is marketed but largely occupied is not counted as vacant space.) Sublet Space Vacant: Secondgeneration, unoccupied space being actively marketed by a tenant. (Sublet space that is marketed but still occupied is not counted as vacant space.) Total Space Vacant: The sum of new, relet, and sublet space that is unoccupied and being actively marketed. Vacancy Rate: The amount of unoccupied space (new, relet, and sublet) expressed as a percentage of total inventory. (Total Space Vacant divided by Total Inventory.) Total Space Available: The total amount of space, both vacant and occupied, being actively marketed for lease by a tenant or landlord. (This includes space that is currently occupied but marketed for future availability.) Availability Rate: The total amount of space being actively marketed for lease (both vacant and occupied) expressed as a percentage of total inventory. (Total Space Available divided by Total Inventory.) Absorption: The net change in occupied space between two points in time. (Total occupied space in the previous quarter minus total occupied space in the current quarter, quoted on a net, not gross, basis.) New/Relet/Sublet Absorption: The net change in occupied new, relet, and sublet space between two quarters. Total Absorption: The net change in total occupied (new, relet, and sublet) space between two quarters. New Leasing Activity: The sum of all square footage underlying any leases between two quarters. This includes pre-leasing activity as well as expansion. It does not include renewals. Disclaimer This report and other research materials may be found on our website at www.cushmanwakefield.com. This is a research document of Cushman & Wakefield in Washington, DC. Questions related to information herein should be directed to the Research Department at +1 202 463 2100. Information contained herein has been obtained from sources deemed reliable and no representation is made as to the accuracy thereof. About Cushman & Wakefield Cushman & Wakefield is a leading global real estate services firm that helps clients transform the way people work, shop, and live. Our 43,000 employees in more than 60 countries help investors and occupiers optimize the value of their real estate by combining our global perspective and deep local knowledge with an impressive platform of real estate solutions. Cushman & Wakefield is among the largest commercial real estate services firms with revenue of $5 billion across core services of agency leasing, asset services, capital markets, facility services (C&W Services), global occupier services, investment & asset management (DTZ Investors), project & development services, tenant representation, and valuation & advisory. To learn more, visit www.cushmanwakefield.com or follow @CushWake on Twitter. Cushman & Wakefield 24