Las Vegas. Economic Review. Las Vegas. Research & Forecast Report Q1 2018

Las Vegas Research & Forecast Report Q1 2018 Las Vegas Economic Review 1 Las Vegas Research & Forecast Report Q1 2018 Economic Review Colliers International

Glossary Industrial Definitions Incubator: Multi-tenant buildings without dock-high loading doors that have a parking ratio lower than 3.5/1,000 square feet and bay sizes lower than 3,500 square feet. Light Distribution: Multi- or single-tenant buildings that include dock-high loading doors and have bay sizes of less than 15,000 square feet. Light Industrial: Multi- or single-tenant buildings without dock-high loading doors that have a parking ratio lower than 3.5/1,000 square feet and, in the case of multi-tenant buildings, bay sizes of at least 3,500 square feet. Flex: Warehouse/Distribution: Multi- or single-tenant buildings without dock-high loading doors with parking ratios in excess of 3.5/1,000 square feet. Multi- or single-tenant buildings that include dock-high loading doors and have bay sizes of at least 15,000 square feet. Office Definitions Class A Office: Class B Office: Class C Office: Buildings with steel frame construction, high end exterior finish, distinctive lobbies featuring upgraded finishes, amenities including on-site security, state-of-the-art communications and data infrastructure and covered parking. Class A buildings are usually multi-story. Buildings with steel frame, reinforced concrete or concrete tilt-up construction. Class B buildings contain common bathrooms and hallways, and their lobbies may have granite and hardwood detailing. Class B buildings are often multi-story. Buildings of wood frame construction. Class C buildings are often garden-style and are built around courtyards. Retail Definitions Community Center: Neighborhood Center: Power Center: Strip Center: Retail centers anchored by supermarkets, drug stores and discount department stores. Tenants include offprice retailers selling apparel, home improvements/furnishings, toys, electronics or sporting goods. Retail centers anchored by supermarkets and drug stores. Neighborhood centers are intended for convenience shopping for day-to-day needs of consumers. Retail centers dominated by several large anchors including discount department stores, off-price stores, warehouse clubs or category killers. Power centers generally do not include much inline space. Unanchored retail centers that are 20,000 square feet in size or larger. Multifamily Definitions Class A Multifamily: Class B/C Multifamily: Buildings constructed in the last 5 years Buildings constructed more than 5 years ago General Definitions Vacant SF: Sublease SF: Net Absorption: Space in a building that is unoccupied and offered for lease by the owner of the company. Space in a building that is offered for sublease by the primary tenant. This space may or may not be occupied. Difference in occupied square footage from one period to another. 2 Las Vegas Research & Forecast Report Q1 2018 Economic Review Colliers International

Table of Contents Economic Review Growing but Slowing Southern Nevada s economy continued to expand in January 2018, but appears to be expanding at a slower rate than it did in 2017. Southern Nevada saw improved year-over-year growth in this year compared to last in the categories of taxable sales and construction jobs, but otherwise saw growth slow or turn negative. Naturally, 2018 has only just begun and various entertainment projects and the recent tax reform may prove stimulating as the year proceeds. Industrial Review Demand Lags Behind Supply 2017 saw a significant expansion of Southern Nevada s industrial inventory accompanied by a significant expansion of occupied industrial space. Office Review Let the Good Times Roll Southern Nevada s office market got off to a good start in 2018 with 182,070 square feet of net absorption. 4 8 14 Retail Review Big Box Blues After three quarters of strong net absorption, Southern Nevada s retail market experienced negative 25,803 square feet of net absorption in the first quarter of 2018. Multifamily A Year of Expansion According to statistics provided by REIS, multifamily vacancy in Southern Nevada decreased by 0.2 points in the fourth quarter of 2017 (the most recent quarter of available data) to 3.0 percent Medical Office Diagnosis: Recovery Southern Nevada s medical office market followed up a strong 2017 with a solid first quarter in 2018. 20 27 32 Hospitality All Quiet on the Las Vegas Strip Southern Nevada s hospitality sector has struggled over the past year with decreasing visitor volume and in recent months with decreasing gaming revenue. Land Land Sales Begin to Rebound Southern Nevada s land market saw 78 sales in the first quarter of 2018, roughly equal to the number of land sales one quarter ago, and more than were recorded one year ago. 37 42 This report and other research materials may be found on our website at www.colliers.com/lasvegas. This quarterly report is a research document of Colliers International Las Vegas. Questions related to information herein should be directed to the Research Department at +1 702 836 3781. Information contained herein has been obtained from sources deemed reliable and no representation is made as to the accuracy thereof. 2016 Colliers International 3 Las Vegas Research & Forecast Report Q1 2018 Economic Review Colliers International

Research & Forecast Report LAS VEGAS ECONOMIC REVIEW Q1 2018 Growing but Slowing Southern Nevada s economy continued to expand in January 2018, but appears to be expanding at a slower rate than it did in 2017. Southern Nevada saw improved year-over-year growth this year compared to last in the categories of taxable sales and construction jobs, but otherwise saw growth slow or turn negative. Naturally, 2018 has only just begun and various entertainment projects and the recent tax reform may prove stimulating as the year proceeds. Unemployment in the Las Vegas-Paradise MSA stood at 5.4 percent as of January 2018, up from 5.1 percent in January 2017. Unemployment peaked in Southern Nevada at 14.0 percent in January 2011, and has been generally headed down ever since. The area s previous low unemployment was 3.7 percent in December 2005. The latest national unemployment figure was 4.1 percent in February 2018, down from 4.7 percent in February 2017. The national labor force participation rate improved to 63.0 percent in February 2018, even with the participation rate recorded in February 2017. Recovery Index (Year-Over-Year) Clark County Economic Data Year Ago Current Jobs (1000s) (Jan 2018) 999.4 1025.1 Visitor Volume YTD (Jan 2018) 3.51 MM 3.39 MM Gaming Revenue YTD (Jan 2018) $926 MM $892 MM Taxable Sales YTD (Dec 2017) $39.9 BB $41.5 BB Commercial Occupancy (Q1-18) 91.7% 91.8% Source: The Center for Business & Economic Research, UNLV; Colliers International

Since January 2017, total employment in Southern Nevada increased by 25,662 jobs, more than the 24,873 jobs that were added between January 2016 and January 2017. Total nonfarm employment was 977,600 in January 2018, an increase of 20,400 jobs since January 2017. In comparison, total nonfarm employment increased by 31,000 between January 2016 and January 2017. Job growth in Southern Nevada has slowed down starting in July 2017; average monthly job growth before July 2017 was 3.3 percent, while average monthly job growth fell to 2.5 percent thereafter. The number of jobs added in Southern Nevada each year was on the rise from 2011 to 2014. Since then, the number of jobs added per year has decreased each year. To be sure, jobs are still being added, but they are being added at a lower rate than in past years. On a year-over-year basis, the majority of new jobs created in Southern Nevada were in education and health services (+5,400 jobs), construction (+4,100 jobs), transportation and warehousing (+3,000 jobs), government (+2,500 jobs), professional and business services (+1,900 jobs), retail trade (+1,600 jobs), manufacturing (+1,200 jobs) and financial services (+1,000 jobs). Other sectors experiencing job growth were wholesale trade (+800 jobs), other services (+500 jobs) and natural resources (+100 jobs). Two sectors saw job losses over the period, leisure and hospitality (-1,600 jobs) and information (-100 jobs). Employment Change (January 2017 - January 2018) Southern Nevada Commercial Real Estate Recovery Index While the current construction employment of 61,600 jobs lags well behind the 111,300 construction jobs the Valley had in August of 2006, it has improved significantly since the low of 34,800 construction jobs in early 2012. Southern Nevada is seeing new construction projects in industrial, multifamily, retail, office, hospitality, sports and infrastructure, and the new worry is that the Valley is as many as 10,000 construction workers short for the projects planned in 2018. According to Home Builders Research, new home sales improved in 2017 over recent years, with 9,232 units sold in 2017 compared to 7,952 units sold in 2016. New home sales in January 2018 were 704 units, a 33.6 percent increase from January 2017. The median price for new homes increased, year-over-year, by 7.1 percent in January 2018. In the first half of 2017, median home price increases seemed to moderate, but the second half of the year saw stronger gains and these have extended in January 2018. In January 2018, the median price of a new home in Southern Nevada was $352,984. Existing home sales have generally been decreasing since a June 2017 high of 3,584 units sold. According to the Greater Las Vegas Association of Realtors, 2,261 existing homes sold in January 2018, a 5.5 percent increase from January 2017. At the same time, the median sale price increased 11.3 percent to $275,000. The gap between the median prices for a new home versus an existing home decreased between 2012 and 2016, but then increased over the first half of 2017. The gap began closing again in the second half of 2017, but increased in January 2018. Existing homes cost about 75.1 percent as much as new homes in January 2018. Jobs Added YEAR 2009 2010 2011 2012 2013 2014 2015 2016 2017 Jobs Added* -85,425-23,333 4,592 16,933 23,808 35,017 34,808 30,458 27,667 * Based on average number of jobs per month over the course of the year; data from NDETR 5 Las Vegas Research & Forecast Report Q1 2018 Economic Review Colliers International

After hitting a new high in 2016, visitor volume decreased in 2017 to 42.2 million visitors. While the October mass shooting in Las Vegas may have exacerbated this trend, it did not cause it. During 2017 there were only two months, March and May, in which visitor volume increased over the previous year. Visitor volume in January 2018 was 3.4 million, down 3.3 percent from January 2017. Gaming revenue was $892 million in January 2018, down 3.7 percent from January 2017. Commercial real estate (i.e. industrial, office and retail) investment sales volume in the first quarter of 2018 was $596 million in 83 sales totaling 4.2 million square feet at an average price per square foot (ppsf) of $141.28. That puts 2018 on track to best 2017 s investment sales performance, which itself was the strongest in a decade. Investment sales volume in the first quarter of 2018 increased on a year-over-year basis for industrial properties (+289.4 percent), medical office (+75.5 percent) and professional office (+21.1 percent). Sales volume was down over the same period for shopping centers (negative 56.8 percent) and single-tenant retail (negative 30.5 percent). 6 The Southern Nevada recovery index was generally positive in 2017, increasing from 108.0 in December 2016 to 109.0 in December 2017. The road was rocky in 2017, with the index ranging between a low of 107.6 in March and a high of 109.5 in November. The index increased to 109.5 in January 2018, a 1.1 increase over January 2017. The greatest improvement over the past twelve months was in taxable sales (+3.8 points), followed by new home sales (+3.7 points) and employment (+3 points). Only visitor volume saw a decrease (4.8 points) over the past twelve months. The hospitality industry, Southern Nevada s economic engine, appears to be slowing down. Visitor volume decreased in 2017 and January 2018 s visitation was down from the year before. This slowdown in activity has seen leisure and hospitality jobs in the Valley shrink from a high of 293,000 in May 2017 to 284,600 in January 2018. While these job losses have not translated into major job losses in the remainder of the local economy, they could presage slower job growth in 2018 and thus slower growth in demand for commercial real estate. Las Vegas Research & Forecast Report Q1 2018 Economic Review Colliers International

Economic Statistics Las Vegas First Quarter 2018 TYPE JANUARY-18 OCTOBER-17 JANUARY-17 2018 AVERAGE 2017 AVERAGE QUARTERLY GROWTH ANNUAL GROWTH 2017 TO 2018 GROWTH (AVERAGE) EMPLOYMENT DATA U.S. Employment 147,810,000 147,010,000 145,541,000 147,993,500 146,455,833 0.5% 1.6% 1.0% U.S. Unemployment Rate 4.1% 4.1% 4.8% 4.1% 4.4% 0.0% -14.6% -5.9% Las Vegas MSA Employment Las Vegas MSA Unemployment Rate Las Vegas MSA Construction Jobs Las Vegas MSA Hospitality Jobs 1,025,071 1,023,245 999,409 977,600 978,075 0.2% 2.6% 0.0% 5.4% 5.1% 5.1% 5.4% 5.1% 5.9% 5.9% 6.9% 61,600 67,600 57,500 61,600 63,675-8.9% 7.1% -3.3% 284,600 289,800 286,200 284,600 289,800-1.8% -0.6% -1.8% HOUSING/CONSTRUCTION DATA New Home Sales 704 746 527 704 769-5.6% 33.6% -8.5% New Home Median Price $352,984 $356,400 $329,574 $352,984 $343,548-1.0% 7.1% 2.7% Existing Home Sales 2,261 2,970 2,144 2,195 2,923-23.9% 5.5% -24.9% Existing Home Median Price $265,000 $263,000 $238,000 $270,000 $254,452 0.8% 11.3% 6.1% Residential Permits 889 896 961 1,066 1,121-0.8% -7.5% -4.9% Case-Shiller Housing Price Index (LV) Mortgage Rate (Fixed, 30-year) 171.7 165.4 154.4 n/a 162.7 3.8% 11.2% n/a 4.03% 3.90% 4.15% 4.18% 3.99% 3.3% -2.9% 4.7% Construction Employment 61,600 67,600 57,500 61,600 63,675-8.9% 7.1% -3.3% HOSPITALITY DATA Visitor Volume 3,393,900 3,604,300 3,508,800 3,393,900 3,517,342-5.8% -3.3% -3.5% Gaming Revenue $892,064,000 $854,292,000 $926,169,000 $892,064,000 $831,602,500 4.4% -3.7% 7.3% Room Inventory 146,715 146,582 148,693 146,715 147,268 0.1% -1.3% -0.4% Hotel/Motel Occupancy 83.8% 90.0% 85.7% 83.8% 88.6% -6.9% -2.2% -5.5% Passengers (McCarran Int'l Airport) 3,776,299 4,339,416 3,676,329 3,776,299 4,041,683-13.0% 2.7% -6.6% Convention Attendance 612,900 687,200 736,000 612,900 553,850-10.8% -16.7% 10.7% The information contained in this report was provided by sources deemed to be reliable, however, no guarantee is made as to the accuracy or reliability. As new, corrected or updated information is obtained, it is incorporated into both current and historical data, which may invalidate comparison to previously issued reports. 7 Las Vegas Research & Forecast Report Q1 2018 Economic Review Colliers International

Research & Forecast Report LAS VEGAS INDUSTRIAL Q1 2018 Demand Lags Behind Supply > > Demand for industrial space did not keep up with supply in the first quarter of 2018, although net absorption remained positive > > This increased vacancy to 5.5 percent > > The overall weighted average asking rate decreased to $0.64 psf NNN 2017 saw a significant expansion of Southern Nevada s industrial inventory accompanied by a significant expansion of occupied industrial space. The market ended 2017 with 4.4 percent industrial vacancy, and all was well. 2018 started the year with new completions increasing to 2.4 million square feet and net absorption decreasing to 832,583 square feet. This sent industrial vacancy to 5.5 percent. The overall weighted average asking rate remained at $0.64 per square foot (psf) on a triple net (NNN) basis in the first quarter of 2018, down $0.01 psf from the first quarter of 2017. Construction employment still dominates the industrial jobs market in Southern Nevada. The construction sector added 5,100 jobs between January 2017 and January 2018. Manufacturing jobs increased by 900 jobs over the same period, while wholesale jobs increased by 500. The transportation & warehousing sector, which had shown job decreases over the Historical Vacancy Rates and Asking Lease Rates Economic Indicators INDUSTRIAL Employment Market Indicators Relative to prior period Q1 2018 Q2 2018* Vacancy +3.6% Net Absorption Completions Rental Rate *Projected Summary Statistics RESIDENTIAL Permits +55.4% TRANSPORTATION Taxable Sales +71.2 Las Vegas Market Q1-17 Q4-17 Q1-18 Vacancy Rate 5.6% 4.4% 5.5% 6.0% $0.70 Asking Rent (PSF, NNN) $0.65 $0.68 $0.64 5.5% $0.68 5.0% $0.66 Net Absorption (SF) 1,528,311 2,414,808 832,583 4.5% $0.64 New Completions (SF) 1,783,040 1,673,774 2,393,431 4.0% $0.62 Overall Asking Rents 3.5% $0.60 Per Square Foot Q1-17 Q4-17 Q1-18 3.0% 2 Q 2016 3 Q 2016 4 Q 2016 1 Q 2017 2 Q 2017 3 Q 2017 4 Q 2017 1 Q 2018 $0.58 Warehouse/Distribution $0.53 $0.55 $0.54 Light Distribution $0.63 $0.67 $0.69 Vacancy Asking Rental Rate Light Industrial $0.70 $0.75 $0.71 After a boisterous 2017, the lower net absorption experienced in the first quarter of 2018 might come as a shock, especially as it came with a post-recession record level of new completions. Incubator $0.82 $0.86 $0.87 Flex $0.88 $0.87 $0.90

past few quarters, increased by 1,500 jobs between January 2017 and January 2018. Unemployment in the Las Vegas- Paradise MSA stood at 5.4 percent in January 2018, up from 5.1 percent in January 2017. From January 2017 to January 2018, total employment in Southern Nevada increased by 25,700 jobs, a 2.6 percent increase. Historical Net Absorption vs. Completions 3,000,000 2,500,000 2,000,000 Southern Nevada s industrial inventory expanded by 2.4 million square feet in the first quarter of 2018, a significant increase from one quarter ago and one year ago. All but 14,000 square feet of this new inventory was warehouse/distribution product. An additional 3.6 million square feet of industrial space is slated for completion in 2018, with an additional 5.3 million square feet planned for completion in 2019. Projects that should be completed in the second quarter of 2018 are 12 percent pre-leased or buildto-suit. 1,500,000 1,000,000 500,000 0 2 Q 2016 3 Q 2016 Net Absorption 4 Q 2016 1 Q 2017 2 Q 2017 3 Q 2017 Completions 4 Q 2017 1 Q 2018 Net absorption in the first quarter of 2018 was 832,583 square feet, a significant decrease from last quarter s 2,414,808 square feet. Only the East Las Vegas submarket had negative net absorption (negative 78,724 square feet) in the first quarter of 2018. Net absorption was highest this quarter in Henderson at 428,199 square feet, followed distantly by the Airport (211,691 square feet) and Southwest (190,255 square feet) submarkets. The elephant in the room was the absence of significant net absorption in the North Las Vegas submarket this quarter. North Las Vegas dominated industrial demand in 2017, producing a total of 5,195,720 square feet of net absorption that year. This quarter, North Las Vegas had a mere 37,408 square feet of net absorption, despite racking up 1,332,941 square feet of new completions. Industrial gross absorption was 2.9 million square feet in the first quarter of 2018, lower than one quarter ago and lower than one year ago. Occupancy vs. Industrial Employment 175,000 170,000 165,000 160,000 155,000 150,000 2 Q 2016 3 Q 2016 4 Q 2016 Industrial Jobs 1 Q 2017 2 Q 2017 3 Q 2017 4 Q 2017 Occupancy Rate 1 Q 2018 96.0% 95.0% 94.0% 93.0% 92.0% 91.0% Vacancy increased to 5.5 percent in the first quarter of 2018, 0.1 point lower than one year ago, but 1.1 points higher than last quarter. The culprit was the addition of 2.4 million square feet of new inventory to the market coupled with only 832,583 square feet of net absorption. The Valley s lowest vacancy rate was in the West Central submarket (2.8 percent) followed by Airport (4.0 percent) and Southwest (4.1 percent). The Valley s highest vacancy rate was in the Henderson submarket (8.0 percent) followed by North Las Vegas (7.1 percent). The industries most active in occupying industrial space in the first quarter of 2018 were involved in manufacturing, professional and business services and retail. Local companies took 32.4 percent of the leased square footage we tracked in the first quarter of 2018. Companies headquartered in the Southeast U.S. took 28.2 percent of the occupied space while 21.4 percent came from Midwestern states. In recent quarters we have seen a trend of demand for JAN 2017 JAN 2018 CHANGE Construction 56,500 61,600 + 5,100 Manufacturing 22,500 23,400 + 900 Transportation & Warehousing 40,100 41,600 + 1,500 Wholesale 21,900 22,400 + 500 Source: Nevada Department of Employment, Training and Rehabilitation. 9 Las Vegas Research & Forecast Report Q1 2018 Industrial Colliers International

industrial space in Southern Nevada originating from a broader portion of the United States than in the past. From 2008 to 2017, we saw about 41.8 percent of industrial space occupied by local tenants, and another 15.8 percent from tenants originating in the Southwestern United States, principally California. Midwestern companies took 9.1 percent of occupied space, and Southeastern companies 8.4 percent. In 2017 alone, Midwestern companies increased their share to 12.6 percent, and Southeastern companies to 10.5 percent. So far in 2018, these shares have increased to 21.4 percent and 28.2 percent respectively. This trend suggests that Southern Nevada is becoming more important to national companies as a place to do business. In the first quarter of 2018, the weighted average asking lease rate for industrial space was $0.64 psf NNN, a decrease of $0.01 from the first quarter of 2017. If adjusted for inflation, the weighted average asking lease rate was $0.46 psf NNN, a decrease of $0.02 from one year ago. Units leased in the first quarter of 2018 had effective lease rates that averaged 98 percent of asking rates, a decrease from 2017 s average of 106.1 percent. This suggests that asking rates may not increase as much in 2018 as they did in previous years. Industrial investment sales volume in the first quarter of 2018 was $279.5 million in 42 sales totaling 2,672,000 square feet at an average sales price of $104.63 psf. The last quarter to have a comparable level sales was the first quarter of 2014. If the first quarter s pace can be maintained for the remainder of 2018, it might produce a record annual level of sales for the post-great Recession industrial market. The average cap rate this quarter 1 Using the Consumer Price Index, All Urban Consumers, West Region, Class A Cities, 1982-1984 = 100 Industrial Development Schedule PROJECT TYPE STATUS SUBMARKET SIZE PRE-LEASING 2ND QUARTER 2018 1,192,309 SF 12% 1761 S Mojave Road Light Industrial UC East Las Vegas 21,800 SF 0% Centra Craig Corporate Center Warehouse/Distribution UC North Las Vegas 155,790 SF 0% Lamb Industrial Center Light Distribution PC North Las Vegas 122,291 SF 17% Northgate Distribution Center 4 Warehouse/Distribution UC North Las Vegas 215,804 SF 0% South15 Industrial Park Bldg 1 Warehouse/Distribution UC Henderson 86,880 SF 0% South15 Industrial Park Bldg 2 Warehouse/Distribution UC Henderson 73,840 SF 0% Speedway Commerce Center West A Warehouse/Distribution UC North Las Vegas 390,904 SF 0% Turano Baking Company Warehouse/Distribution UC Henderson 125,000 SF BTS 3RD QUARTER 2018 1,858,240 SF 11% 401 Eastgate Warehouse/Distribution UC Henderson 156,690 SF BTS AirParc South Warehouse/Distribution PC Henderson 153,930 SF 0% AirParc South Light Distribution PC Henderson 58,100 SF 0% Sunset & Schirlls Light Industrial UC Southwest 60,520 SF 83% Tropical Distribution Center 1 Warehouse/Distribution PC North Las Vegas 588,000 SF 0% Tropical Distribution Center 2 Warehouse/Distribution PC North Las Vegas 621,000 SF 0% 4TH QUARTER 2018 514,787 SF 24% Arroyo Industrial Center Warehouse/Distribution PC Southwest 69,732 SF 0% Blue Diamond Business Center Bldg 6 Warehouse/Distribution PC Southwest 322,560 SF 38% Craig @ Walnut Warehouse/Distribution PC North Las Vegas 122,495 SF 0% 2019 5,351,396 SF 6% 5785 N Hollywood Blvd Warehouse/Distribution PC North Las Vegas 36,000 SF BTS Blue Diamond Business Center Bldg 10 Warehouse/Distribution PC Southwest 457,180 SF 0% Civic Center & Gowan Warehouse/Distribution PC North Las Vegas 126,270 SF 0% Escondido Airport Park Light Industrial PC Airport 30,900 SF 0% Huntington Industrial 1 Warehouse/Distribution PC North Las Vegas 78,139 SF 0% Huntington Industrial 2 Warehouse/Distribution PC North Las Vegas 169,457 SF 0% Huntington Industrial 3 Warehouse/Distribution PC North Las Vegas 93,338 SF 0% Las Vegas Digital Exchange Campus 10 Warehouse/Distribution PC Southwest 227,050 SF 0% Prologis I-15 Speedway Logistics Center Bldg 3 Warehouse/Distribution PC North Las Vegas 633,120 SF 0% Prologis I-15 Speedway Logistics Center Bldg 4 Warehouse/Distribution PC North Las Vegas 367,060 SF 0% Prologis I-15 Speedway Logistics Center Bldg 5 Warehouse/Distribution PC North Las Vegas 648,000 SF 0% Prologis I-15 Speedway Logistics Center Bldg 6 Warehouse/Distribution PC North Las Vegas 398,140 SF 0% Prologis I-15 Speedway Logistics Center Bldg 7 Warehouse/Distribution PC North Las Vegas 98,580 SF 0% Prologis Warm Springs Freeway 7 Warehouse/Distribution PC Airport 80,705 SF 0% Prologis Warm Springs Freeway 8 Warehouse/Distribution PC Airport 82,110 SF 0% South15 Airport Center Bldg C Warehouse/Distribution PC Henderson 192,440 SF 0% South15 Airport Center Bldg D Warehouse/Distribution PC Henderson 83,000 SF 0% South15 Airport Center Bldg E Warehouse/Distribution PC Henderson 200,000 SF 0% Speedway Commerce Center West B Warehouse/Distribution UC North Las Vegas 332,800 SF 0% Sunpoint Crossing 1 Warehouse/Distribution PC North Las Vegas 207,731 SF 0% Sunpoint Crossing 2 Warehouse/Distribution PC North Las Vegas 289,837 SF 0% Sunpoint Crossing 3 Warehouse/Distribution PC North Las Vegas 254,539 SF 0% Switch SuperNAP Warehouse/Distribution PC Southwest 265,000 SF BTS 10 Las Vegas Research & Forecast Report Q1 2018 Industrial Colliers International

was 5.6 percent, lower than in 2017. This represents a show of confidence in the future of Southern Nevada s industrial market by investors. Demand for warehouse/distribution space took off in the second quarter of 2013, setting off the recovery of the Valley s industrial market that culminated in this quarter s post-recession record of 2,193,431 square feet of new construction. This quarter s net absorption of 725,180 square feet was not the lowest experienced during the current boom, but it was well short of what was needed to keep the warehouse/distribution vacancy rate below 5.0 percent. That being said, a vacancy rate of 6.2 percent is not a tragedy, and one weak quarter does not a debacle make. This quarter s net absorption was just about average for quarterly net absorption during the current boom, but pre-leasing in warehouse/ distribution projects currently under construction was only 12 percent. Net absorption of warehouse/distribution must increase over the next few quarters to keep up with new supply. The light distribution sector in Southern Nevada started recovering in earnest in 2015. Over that period, vacancy fell from 10.8 percent to 4.6 percent in the first quarter of 2017. Since then, light distribution vacancy has stayed between 4.6 percent and 4.5 percent. In the first quarter of 2018, the light distribution sector posted 187,249 square feet of net absorption and 186,000 square feet of new construction, keeping the vacancy rate 4.5 percent. The asking rate for light distribution space increased by $0.02 psf in the first quarter to $0.69 psf NNN. Southern Nevada s light industrial sector had a strong second quarter of 2017 followed by two weaker quarters that year. This weakness extended into the first quarter of 2018, with the market posting negative 49,483 square feet of net absorption. Light industrial activity tends to decrease in the first quarter of each year, though the decrease this year was more pronounced than in previous years. Light industrial vacancy was 4.1 percent in the first quarter of 2018, lower than one year ago. The incubator market had net absorption of negative 78,281 square feet in the first quarter of 2018, the first negative net absorption in the incubator sector since the fourth quarter of 2016. This sent vacancy up to 6.6 percent, which was still lower than one year ago. The flex sector saw stronger performance this quarter, with 47,918 square feet of net absorption sending vacancy down to 8.0 percent, the lowest it has been since 2006. After a boisterous 2017, the lower net absorption experienced in the first quarter of 2018 might come as a shock, especially as it came with a post-recession record level of new completions. This is not necessarily the beginning of the end, as a surplus of vacant industrial space represents an opportunity for businesses the want to establish themselves in Southern Nevada on a short timeline. That being said, demand for industrial space must increase to keep pace with new supply entering the market in 2018 to keep vacancy rates from rising. demand for industrial space must increase to keep pace with new supply entering the market in 2018 to keep vacancy rates from rising. Investment Sales 2014 2015 2016 2017 2018 YTD No. Sales 100 52 70 63 42 Square Feet Sold 5,832,000 2,759,000 3,299,000 3,184,000 2,672,000 Sales Volume $496.2 MM $248.8 MM $308.4 MM $309.1 MM $279.5 MM Average Price/SF $85.08 $90.20 $93.48 $97.10 $104.63 Average Cap Rate 7.3% 7.1% 7.4% 6.9% 5.6% Average Sale Size (SF) 58,000 53,000 47,000 51,000 64,000 *Using the Consumer Price Index, All Urban Consumers, West Region, Class A Cities, 1982-1984 = 100 11 Las Vegas Research & Forecast Report Q1 2018 Industrial Colliers International

NORTHWEST 95 215 NORTH LAS VEGAS 15 Significant Industrial Sale Activity Northgate Distribution Center 813,120 SF - $73,400,000 $90.00/SF January 2018 Warehouse/Distribution WEST CENTRAL EAST LAS VEGAS 3828 North Civic Center Drive 39,100 SF - $4,775,000 $122.00/SF January 2018 Light Distribution 95 East Sahara Industrial Park 66,426 SF - $5,100,000 $77.00/SF March 2018 Incubator SOUTHWEST 215 AIRPORT HENDERSON Hughes Airport Center 75,886 SF - $10,073,000 $133.00/SF January 2018 Light Distribution Foremost Business Park 43,632 SF - $4,550,000 $104.00/SF February 2018 Incubator Lease Activity PROPERTY NAME LEASE DATE LEASE TERM SIZE EFFECTIVE RATE TYPE LV Digital Exchange Campus Jan 2018 63 months 68,950 SF $0.58 NNN Warehouse/Distribution Jennifer Park Feb 2018 60 months 25,527 SF $0.46 NNN Light Distribution Stadium Industrial Park Jan 2018 24 months 20,464 SF $0.49 NNN Light Industrial Patrick Airport Business Park Feb 2018 37 months 5,051 SF $0.75 NNN Flex Valley View Russell Commerce Center Jan 2018 38 months 3,050 SF $1.02 NNN Incubator 12 Las Vegas Research & Forecast Report Q1 2018 Industrial Colliers International

Market Comparisons - Las Vegas Industrial Market TYPE TOTAL INVENTORY SF DIRECT VACANT SF DIRECT VACANCY RATE SUBLEASE VACANCY SF TOTAL VACANT SF VACANCY RATE CURRENT QUARTER VACANCY RATE PRIOR QUARTER NET ABSORPTION CURRENT QTR SF NET ABSORPTION YTD SF COMPLETIONS CURRENT QTR SF COMPLETIONS YTD SF UNDER CONSTRUCTION SF PLANNED CONSTRUCTION SF WEIGHTED AVG ASKING RENTAL RATE AIRPORT SUBMARKET WH 5,859,225 26,904 0.5% - 26,904 0.5% 3.0% 150,453 150,453 - - - 162,815 $0.79 LD 3,338,537 146,257 4.4% 48,368 194,625 5.8% 7.0% 69,734 69,734 - - - - $0.83 LI 3,008,647 149,401 5.0% - 149,401 5.0% 4.8% (4,067) (4,067) - - - 30,897 $1.00 INC 1,485,060 168,740 11.4% - 168,740 11.4% 8.2% (46,474) (46,474) - - - - $1.17 FLX 1,509,168 111,719 7.4% - 111,719 7.4% 10.2% 42,045 42,045 - - - - $0.90 Total 15,200,637 603,021 4.0% 48,368 651,389 4.3% 5.5% 211,691 211,691 - - - 193,712 $0.98 EAST LAS VEGAS SUBMARKET WH 1,115,454 25,183 2.3% - 25,183 2.3% 0.0% (25,183) (25,183) - - - - $0.54 LD 532,163 32,200 6.1% 26,492 58,692 11.0% 5.0% (32,200) (32,200) - - - - $0.37 LI 1,799,256 80,565 4.5% - 80,565 4.5% 3.5% (17,797) (17,797) - - 21,804 - $0.61 INC 280,959 24,315 8.7% - 24,315 8.7% 7.8% (2,403) (2,403) - - - - $0.67 FLX 233,692 8,905 3.8% - 8,905 3.8% 3.3% (1,141) (1,141) - - - - $0.70 Total 3,961,524 171,168 4.3% 26,492 197,660 5.0% 3.0% (78,724) (78,724) - - 21,804 - $0.57 HENDERSON SUBMARKET WH 7,994,014 857,846 10.7% 27,270 885,116 11.1% 5.6% 374,660 374,660 860,490 860,490 442,410 687,470 $0.63 LD 1,871,746 163,573 8.7% - 163,573 8.7% 2.3% 60,723 60,723 186,000 186,000-58,100 $0.68 LI 3,665,769 92,883 2.5% 5,997 98,880 2.7% 2.3% 5,847 5,847 14,000 14,000 - - $0.74 INC 496,625 32,414 6.5% - 32,414 6.5% 5.8% (3,783) (3,783) - - - - $0.75 FLX 1,360,598 85,111 6.3% - 85,111 6.3% 5.6% (9,248) (9,248) - - - - $1.01 Total 15,388,752 1,231,827 8.0% 33,267 1,265,094 8.2% 4.4% 428,199 428,199 1,060,490 1,060,490 442,410 745,570 $0.67 NORTH LAS VEGAS SUBMARKET WH 29,036,201 2,235,381 7.7% 69,900 2,305,281 7.9% 3.8% 118,995 118,995 1,332,941 1,332,941 762,498 5,671,797 $0.45 LD 5,040,042 267,319 5.3% 63,750 331,069 6.6% 6.3% 6,658 6,658 - - 122,291 - $0.54 LI 9,079,451 497,824 5.5% 0 497,824 5.5% 4.7% -72,023 (72,023) - - - - $0.61 INC 724,573 78,530 10.8% 0 78,530 10.8% 9.2% -12,023 (12,023) - - - - $0.62 FLX 803,833 102,788 12.8% 0 102,788 12.8% 13.2% -4,199 (4,199) - - - - $0.87 Total 44,684,100 3,181,842 7.1% 133,650 3,315,492 7.4% 4.5% 37,408 37,408 1,332,941 1,332,941 884,789 5,671,797 $0.50 NORTHWEST SUBMARKET WH 224,906-0.0% - - 0.0% 0.0% - - - - - - $- LD 50,000-0.0% - - 0.0% 22.2% 11,097 11,097 - - - - $- LI 341,430 21,412 6.3% - 21,412 6.3% 5.6% (2,250) (2,250) - - - - $0.75 INC 99,427 15,370 15.5% - 15,370 15.5% 17.5% 2,074 2,074 - - - - $0.82 FLX 740,230 56,568 7.6% - 56,568 7.6% 7.4% (1,441) (1,441) - - - - $0.92 Total 1,455,993 93,350 6.4% - 93,350 6.4% 7.1% 9,480 9,480 - - - - $0.86 SOUTHWEST SUBMARKET WH 14,849,213 639,668 4.3% - 639,668 4.3% 5.0% 106,255 106,255 - - - 1,341,522 $0.70 LD 7,344,599 237,006 3.2% 29,870 266,876 3.6% 4.1% 66,967 66,967 - - - - $0.85 LI 10,536,261 453,829 4.3% - 453,829 4.3% 4.4% 13,346 13,346 - - 60,520 - $0.73 INC 2,358,340 66,490 2.8% - 66,490 2.8% 2.3% (18,215) (18,215) - - - - $0.79 FLX 1,689,248 141,698 8.4% 4,200 145,898 8.6% 9.7% 21,902 21,902 - - - - $0.86 Total 36,777,661 1,538,691 4.2% 34,070 1,572,761 4.3% 4.7% 190,255 190,255 - - 60,520 1,341,522 $0.75 WEST CENTRAL SUBMARKET WH 2,253,774-0.0% - - 0.0% 0.0% - - - - - - $- LD 999,141 13,500 1.4% - 13,500 1.4% 1.8% 4,270 4,270 - - - - $0.49 LI 7,742,676 204,716 2.6% 10,300 215,016 2.8% 3.0% 27,461 27,461 - - - - $0.72 INC 2,511,825 142,700 5.7% - 142,700 5.7% 5.8% 2,543 2,543 - - - - $0.76 FLX 161,603 15,419 9.5% - 15,419 9.5% 9.5% - - - - - - $0.81 Total 13,669,019 376,335 2.8% 10,300 386,635 2.8% 3.0% 34,274 34,274 - - - - $0.73 MARKET TOTAL WH 61,332,787 3,784,982 6.2% 97,170 3,882,152 6.3% 4.0% 725,180 725,180 2,193,431 2,193,431 1,204,908 7,863,604 $0.54 LD 19,176,228 859,855 4.5% 168,480 1,028,335 5.4% 5.0% 187,249 187,249 186,000 186,000 122,291 58,100 $0.69 LI 36,173,490 1,500,630 4.1% 16,297 1,516,927 4.2% 4.0% (49,483) (49,483) 14,000 14,000 82,324 30,897 $0.71 INC 7,956,809 528,559 6.6% - 528,559 6.6% 5.7% (78,281) (78,281) - - - - $0.87 FLX 6,498,372 522,208 8.0% 4,200 526,408 8.1% 8.9% 47,918 47,918 - - - - $0.90 Total 131,137,686 7,196,234 5.5% 286,147 7,482,381 5.7% 4.5% 832,583 832,583 2,393,431 2,393,431 1,409,523 7,952,601 $0.64 QUARTERLY COMPARISON AND TOTALS Q1-18 131,137,686 7,196,234 5.5% 286,147 7,482,381 5.7% 4.5% 832,583 832,583 2,393,431 2,393,431 1,409,523 7,952,601 $0.64 Q4-17 128,744,255 5,635,386 4.4% 162,031 5,797,417 4.5% 5.1% 2,414,808 7,557,191 1,673,774 6,533,730 2,906,903 5,593,007 $0.68 Q3-17 127,070,481 6,376,420 5.0% 145,805 6,522,225 5.1% 5.4% 1,694,829 5,142,383 1,413,231 4,859,956 3,462,663 6,128,798 $0.68 Q2-17 125,657,250 6,658,018 5.3% 152,191 6,810,209 5.4% 5.8% 1,919,243 3,447,554 1,663,685 3,446,725 4,136,935 4,203,998 $0.64 Q1-17 123,993,565 6,913,576 5.6% 266,170 7,179,746 5.8% 5.7% 1,528,311 1,528,311 1,783,040 1,783,040 3,952,298 6,739,906 $0.65 WH = Warehouse LD = Light Distribution LI = Light Industrial INC = Incubator FLX = Flex 13 Las Vegas Research & Forecast Report Q1 2018 Industrial Colliers International

Research & Forecast Report LAS VEGAS OFFICE Q1 2018 Let the Good Times Roll > > Office vacancy fell to 15.1 percent in the first quarter of 2018 > > Net absorption was 182,070 square feet with only 68,364 square feet of new completions > > Asking rates reached $2.05 psf FSG Southern Nevada s office market got off to a good start in 2018 with 182,070 square feet of net absorption. This extended the office market s recovery or perhaps we should start calling it an expansion into a thirteenth quarter. Office vacancy in Southern Nevada stood at 15.1 percent in the first quarter of 2018, a decrease of 0.3 points from one quarter ago and a 1.8 point decrease from one year ago. The weighted average asking rate for office space increased this quarter to $2.05 per square foot (psf) on a Full Service Gross (FSG) basis. Southern Nevada s office job market added 4,100 jobs between January 2017 and January 2018. The largest gain was in the health care sector (+3,700 jobs). We estimate approximately 3,901 of the jobs added over the past twelve months fed directly into professional office space. Over the same period, net absorption totaled 1,179,783 square feet. This represented 302 Historical Vacancy Rates and Asking Lease Rates Economic Indicators Office Employment +2.6% Market Indicators Office SF/Job +3.2% Q1 2018 Sublease Vacancy +14.6 Relative to prior period Q1 2018 Q2 2018* VACANCY NET ABSORPTION COMPLETIONS RENTAL RATE *Projected Summary Statistics 18.0% $2.06 Las Vegas Market Q1-17 Q4-17 Q1-18 17.5% 17.0% $2.04 $2.02 Vacancy Rate 16.9% 15.4% 15.1% 16.5% 16.0% $2.00 $1.98 Asking Rent (PSF, FSG) $2.02 $2.04 $2.05 15.5% 15.0% $1.96 $1.94 Net Absorption (SF) 127,479 147,073 182,070 14.5% $1.92 New Completions (SF) 0 152,000 68,364 14.0% $1.90 13.5% 1 Q 2016 2 Q 2016 3 Q 2016 Vacancy 4 Q 2016 1 Q 2017 4 Q 2017 3 Q 2017 2 Q 2017 Asking Rental Rate 1 Q 2018 $1.88 Overall Asking Rents Per Square Foot Q1-17 Q4-17 Q1-18 After three years of positive net absorption, Southern Nevada s office market has never been more ready for inventory expansion. Class A $2.68 $2.65 $2.66 Class B $2.03 $2.05 $2.09 Class C $1.70 $1.72 $1.73

square feet of occupied space per new office job. By comparison, during the 2005-2007 boom Southern Nevada businesses occupied 534 square feet per office job. Unemployment in the Las Vegas-Paradise MSA stood at 5.4 percent in January 2018, up from 5.1 percent in January 2017. From January 2017 to January 2018, total employment in Southern Nevada increased by 25,700 jobs, a 2.6 percent increase. Historical Net Absorption vs. Completions 700,000 600,000 500,000 400,000 Southern Nevada s office market had a single Class B office building completed in the first quarter of 2018, the 62,364 square foot St Rose Coronado Center in the Henderson submarket. The market will probably see close to 600,000 square feet of professional office space completed through the remainder of 2018, with another 818,000 square feet of office space planned for completion in 2019. Pre-leasing of this future office space is strong. 300,000 200,000 100,000 0 1 Q 2016 2 Q 2016 3 Q 2016 Net Absorption 4 Q 2016 1 Q 2017 2 Q 2017 3 Q 2017 Completions 4 Q 2017 1 Q 2018 Southern Nevada s office market had 182,070 square feet of net absorption in the first quarter of 2017. This was higher than one year ago, when net absorption totaled 127,479 square feet. The office market has now managed thirteen straight quarters of positive net absorption. Net absorption this quarter was not evenly spread across the Valley s submarkets. Net absorption was highest in the West Central submarket (201,639 square feet), followed distantly by Northwest (24,260 square feet). Three submarkets experienced negative net absorption this quarter, Airport (negative 26,105 square feet), Downtown (negative 25,702 square feet) and North Las Vegas (negative 17,524 square feet). Occupancy vs. Office Employment 145,000 140,000 135,000 130,000 125,000 120,000 115,000 87.0% 86.0% 85.0% 84.0% 83.0% 82.0% 81.0% Demand for office space over the past two quarters came primarily from financial activities, health services and retail services companies. In the lease comps to which we had access in 2017, local tenants took 67 percent of the leased space, tenants from the Southwest U.S. (including California) 19.7 percent and tenants from the Midwest 5 percent. Southern Nevada averaged 272 square feet of occupied office space per office job in the first quarter of 2018. This number peaked in 2010 at approximately 347 square feet per job, and has been sliding ever since. It averaged 269 square feet per job in 2017. The reason behind this trend is technology and smarter use of office space by office users, who are utilizing concepts like shared space or hoteling to maximize their efficiency. 110,000 1 Q 2016 2 Q 2016 3 Q 2016 Office Jobs 4 Q 2016 JAN 2017 JAN 2018 CHANGE Information 11,100 10,900-200 Financial Activities 49,100 50,100 + 1,000 Professional & Business Services 139,200 138,800-400 Health Care 62,800 66,500 + 3,700 80.0% Source: Nevada Department of Employment, Training and Rehabilitation 1 Q 2017 2 Q 2017 3 Q 2017 4 Q 2017 Occupancy Rate 1 Q 2018 Vacancy by Size Range Q1-2017 Q4-2017 Q1-2018 ANNUAL CHANGE Size Range Units Total SF Units Total SF Units Total SF Units Total SF 0 to 2,500 sf 1,040 2,043,096 990 1,830,245 1,003 1,717,769-50 - 325,327 2,501 to 5,000 sf 465 1,966,924 442 1,784,385 434 1,788,307-23 - 178,617 5,001 to 10,000 sf 188 1,315,112 190 1,354,821 183 1,387,122 + 2 + 39,709 10,001 to 20,000 sf 84 1,291,351 66 973,972 68 981,971-18 - 317,379 20,001 sf + 30 1,073,819 34 1,168,347 39 1,128,192 + 9 + 54,373 15 Las Vegas Research & Forecast Report Q1 2018 Office Colliers International

Investment Sales Activity 2014 2015 2016 2017 2018 YTD No. Sales 67 59 45 94 12 Square Footage 2,302,000 1,712,000 1,449,000 3,507,698 600,634 Sales Volume $250.0 MM $284.3 MM $200.9 MM $656.8 MM $142.2 MM Average Price/SF $108.59 $166.06 $138.70 $187.23 $215.32 Average Cap Rate 7.7% 7.5% 7.8% 7.5% 7.1% Average Sale Size (SF) 34,000 29,000 32,200 37,300 50,100 * Note Date in this graph no longer includes medical office The office vacancy rate in Southern Nevada at the end of 2017 was 15.1 percent, a decrease from last year s rate of 16.9 percent. While this represents a distinct improvement, it remains higher than the pre-2006 average of 9.0 percent vacancy. Office vacancy decreased in four of the Valley s eight submarkets in the first quarter of 2018, with the West Central submarket experiencing the largest decrease (3.9 percentage points), followed by East Las Vegas, Northwest (0.2 points) and the Southwest (0.1 point). Vacancy increased by 2.2 points in North Las Vegas, 0.9 points in Henderson and 0.4 points in the Airport submarket. When examined by the size range of vacant units (including vacant units for sublease), the first quarter of 2018 saw significantly fewer small units on the market than in the first quarter of 2017. Units sized up to 2,500 square feet saw the strongest demand, with This extended the office market s recovery or perhaps we should start calling it an expansion into a thirteenth quarter. Office Development Schedule PROJECT CLASS SUBMARKET SIZE PRE-LEASING Q2-2018 220,646 SF 100% Aristocrat Technologies HQ B Northwest 180,000 SF BTS GLVAR HQ B Southwest 40,646 SF BTS Q3-2018 90,500 SF 57% Roberts Communication Complex B Henderson 40,500 SF BTS Seven Hills Plaza Bldg D B Henderson 50,000 SF 75% Two Summerlin A Northwest 152,300 SF 39% Q4-2018 302,704 SF 80% 601 Bridger Avenue B Downtown 15,867 SF 62% Gardner Plaza C Henderson 23,832 SF 0% UNLV Harry Reid Tech Park A Southwest 110,705 SF BTS 2019 817,985 SF 8% Cadence Bldg 2 C Henderson 15,000 SF 0% Cadence Bldg 3 C Henderson 15,000 SF 0% Centennial Hills Center B Northwest 87,000 SF 0% Centennial Hills Center C Northwest 37,100 SF 0% International Trade & Business Center A Downtown 500,000 SF 0% Magnum Towers A Southwest 100,000 SF 0% Pace Plaza B Southwest 42,000 SF BTS University Gateway B East Las Vegas 21,885 SF 100% 16 Las Vegas Research & Forecast Report Q1 2018 Office Colliers International

vacancy falling by 325,327 square feet year-over-year. The next most active size range was units 10,001 to 20,000 square feet, in which vacancy fell by 317,379 square feet. Units sized 5,001 to 10,000 square feet, and units sized 20,001 square feet or larger saw an increase in vacancy of 39,709 square feet and 54,373 square feet respectively. Office space available for sublease decreased in the first quarter of 2018 to 430,975 square feet from last quarter s total of 444,132 square feet. The weighted average asking rental rate for office space in Southern Nevada increased by $0.03 to $2.05 psf FSG basis in the first quarter over the first quarter of 2017 s asking rate of $2.02 psf FSG. The Valley s office asking rate has a pattern of remaining static for several quarters and then significantly increasing or decreasing in a single quarter before going flat again. One of these jumps occurred last quarter, when the average asking rate increased from $2.01 psf to $2.04 psf. If the pattern holds, we can expect asking rates to remain fairly flat for several quarters. The Southwest remained the most expensive submarket in the Valley this quarter, with an asking rental rate of 17 $2.32 psf FSG, ahead of Downtown s $2.22 psf FSG. The Valley s lowest average asking rate was in the North Las Vegas submarket at $1.70 psf FSG. Investment sales of office buildings were exceptionally strong in 2017 in terms of both sales volume and square footage sold. So far, 2018 looks like it might be a weaker year for investment sales than 2017. In the first quarter of 2018, office investment sales volume was $142.2 million in twelve sales totaling 600,634 square feet with an average sales price of $215.32. The average sales price was higher this quarter than in 2017. The average cap rate was 7.1 percent in the first quarter of 2018, lower than the 7.5 percent average cap rate in 2017. After three years of positive net absorption, Southern Nevada s office market has never been more ready for inventory expansion. Forward supply of office space jumped in the third quarter of 2017, and office inventory expansion should heat up next quarter. We think Southern Nevada will see approximately 600,000 square feet completed over the remainder of 2018. Build-to-suits make up 371,851 square feet of that total, so net absorption should be strong by year s end, and we think vacancy will fall below 15.0 percent. Las Vegas Research & Forecast Report Q1 2018 Office Colliers International

215 NORTH LAS VEGAS Significant Office Sale Activity Montecito Point 95 187,410 SF - $33,250,000 $177.00/SF February 2018 NORTHWEST 15 Class A Rainbow Sunset Pavilion WEST CENTRAL DOWN TOWN 95 EAST LAS VEGAS 104,795 SF - $32,350,000 $309.00/SF January 2018 Class A Stephanie Beltway Centre 107,451 SF - $26,256,000 $244.00/SF January 2018 Class B SOUTHWEST 215 AIRPORT HENDERSON Town Square 129,000 SF - $11,800,000 $91.00/SF January 2018 Class A Richfield Place 34,386 SF - $7,000,000 $204.00/SF February 2018 Class B Lease Activity Property Name Lease Date Lease Term Size Lease Rate Type Park at Spanish Ridge Jan 2018 60 months 21,500 SF $1.73 NNN Class B 311 Water Street Mar 2018 48 months 20,854 SF $1.15 NNN Class B Cheyenne Fairways Business Center Mar 2018 36 months 10,462 SF $1.83 NNN Class C City Center West Feb 2018 66 months 7,778 SF $2.32 FSG Class A View Pointe Professional Jan 2018 37 months 7,504 SF $1.70 NNN Class B 18 Las Vegas Research & Forecast Report Q1 2018 Office Colliers International

Market Comparisons - Las Vegas Office Market CLASS TOTAL INVENTORY SF DIRECT VACANT SF DIRECT VACANCY RATE SUBLEASE VACANT SF TOTAL VACANT SF VACANCY RATE CURRENT QUARTER VACANCY RATE PRIOR QUARTER NET ABSORPTION CURRENT QTR SF NET ABSORPTION YTD SF COMPLETIONS CURRENT QTR SF COMPLETIONS YTD SF UNDER CONSTRUCTION SF PLANNED CONSTRUCTION SF WEIGHTED AVG ASKING RENTAL RATE AIRPORT SUBMARKET A 729,174 182,492 25.0% 15,326 197,818 27.1% 30.3% 23,048 23,048 - - - - $2.86 B 2,403,646 309,916 12.9% 10,775 320,691 13.3% 11.3% (46,069) (46,069) - - - - $2.00 C 3,209,446 518,133 16.1% 29,079 547,212 17.1% 16.8% (3,084) (3,084) - - - - $1.78 Total 6,342,266 1,010,541 15.9% 55,180 1,065,721 16.8% 16.3% (26,105) (26,105) - - - - $2.04 DOWNTOWN SUBMARKET A 1,232,341 256,027 20.8% 9,840 265,867 21.6% 21.3% (6,111) (6,111) - - - 500,000 $2.66 B 2,355,207 266,211 11.3% 2,353 268,564 11.4% 10.5% (21,345) (21,345) - - - 15,867 $2.10 C 1,443,279 168,701 11.7% - 168,701 11.7% 11.8% 1,754 1,754 - - - - $1.73 Total 5,030,827 690,939 13.7% 12,193 703,132 14.0% 13.5% (25,702) (25,702) - - - 515,867 $2.22 EAST LAS VEGAS SUBMARKET A 1,353,083 322,213 23.8% 5,608 327,821 24.2% 23.1% (33,251) (33,251) - - - - $2.87 B 1,542,404 373,565 24.2% - 373,565 24.2% 24.7% 4,769 4,769 - - - 21,885 $1.41 C 2,591,966 583,385 22.5% 8,401 591,786 22.8% 24.3% 37,044 37,044 - - - - $1.45 Total 5,487,453 1,279,163 23.3% 14,009 1,293,172 23.6% 24.1% 8,562 8,562 - - - 21,885 $1.80 HENDERSON SUBMARKET A 583,905 173,822 29.8% 5,945 179,767 30.8% 33.2% 11,497 11,497 - - - - $2.64 B 2,647,335 426,638 16.1% 18,430 445,068 16.8% 15.8% -3,016 (3,016) 62,364 62,364 90,500 23,832 $2.19 C 2,162,926 247,042 11.4% 8,034 255,076 11.8% 11.7% -2,339 (2,339) - - - 30,000 $1.78 Total 5,394,166 847,502 15.7% 32,409 879,911 16.3% 16.0% 6,142 6,142 62,364 62,364 90,500 53,832 $2.16 NORTH LAS VEGAS SUBMARKET A - - n/a - - n/a n/a - - - - - - $- B 245,696 85,150 34.7% - 85,150 34.7% 22.9% (28,923) (28,923) - - - - $1.95 C 542,659 78,845 14.5% - 78,845 14.5% 16.6% 11,399 11,399 - - - - $1.44 Total 788,355 163,995 20.8% - 163,995 20.8% 18.6% (17,524) (17,524) - - - - $1.70 NORTHWEST SUBMARKET A 1,960,287 320,337 16.3% 8,388 328,725 16.8% 21.8% 51,778 51,778 - - 152,300 - $2.37 B 3,606,717 574,830 15.9% 25,919 600,749 16.7% 15.8% (27,191) (27,191) - - 180,000 - $2.24 C 3,402,299 350,286 10.3% 4,665 354,951 10.4% 10.3% (327) (327) 6,000 6,000-37,100 $1.86 Total 8,969,303 1,245,453 13.9% 38,972 1,284,425 14.3% 15.0% 24,260 24,260 6,000 6,000 332,300 37,100 $2.17 SOUTHWEST SUBMARKET A 590,935 17,790 3.0% 24,078 41,868 7.1% 3.9% 5,397 5,397 - - - 210,705 $2.42 B 3,350,709 462,264 13.8% 61,472 523,736 15.6% 14.2% 5,715 5,715 - - 40,646 42,000 $2.54 C 3,563,277 420,476 11.8% 7,561 428,037 12.0% 11.9% (314) (314) - - - - $2.08 Total 7,504,921 900,530 12.0% 93,111 993,641 13.2% 12.3% 10,798 10,798 - - 40,646 252,705 $2.32 WEST CENTRAL SUBMARKET A 157,624 17,883 11.3% - 17,883 11.3% 13.5% 920 920 - - - - $2.44 B 1,934,301 202,873 10.5% - 202,873 10.5% 20.6% 195,869 195,869 - - - - $1.84 C 3,025,646 390,457 12.9% 8,151 398,608 13.2% 13.3% 4,850 4,850 - - - - $1.62 Total 5,117,571 611,213 11.9% 8,151 619,364 12.1% 16.1% 201,639 201,639 - - - - $1.72 MARKET TOTAL A 6,607,349 1,290,564 19.5% 69,185 1,359,749 20.6% 22.1% 53,278 53,278 - - 152,300 710,705 $2.66 B 18,086,015 2,701,447 14.9% 118,949 2,820,396 15.6% 15.6% 79,809 79,809 62,364 62,364 311,146 103,584 $2.09 C 19,941,498 2,757,325 13.8% 65,891 2,823,216 14.2% 14.3% 48,983 48,983 6,000 6,000-67,100 $1.73 Total 44,634,862 6,749,336 15.1% 254,025 7,003,361 15.7% 16.0% 182,070 182,070 68,364 68,364 463,446 881,389 $2.05 QUARTERLY COMPARISON AND TOTALS Q1-18 44,634,862 6,749,336 15.1% 254,025 7,003,361 15.7% 16.0% 182,070 182,070 68,364 68,364 463,446 881,389 $2.05 Q4-17 44,566,498 6,863,042 15.4% 267,182 7,130,224 16.0% 16.0% 147,073 1,125,192 152,000 382,722 525,810 965,412 $2.04 Q3-17 44,414,498 6,858,115 15.4% 236,068 7,094,183 16.0% 16.5% 267,963 978,119 10,000 230,722 447,810 798,068 $2.01 Q2-17 44,404,498 7,116,078 16.0% 197,574 7,313,652 16.5% 17.4% 582,677 710,156 220,722 220,722 224,364 946,014 $2.02 Q1-17 44,183,776 7,478,033 16.9% 199,166 7,677,199 17.4% 17.6% 127,479 127,479 - - 256,364 739,046 $2.02 19 Las Vegas Research & Forecast Report Q1 2018 Office Colliers International

Research & Forecast Report LAS VEGAS RETAIL Q1 2018 Big Box Blues > > Strong net absorption in the fourth quarter of 2017 was followed by negative net absorption in the first quarter of 2018 > > Vacancy was 8.2 percent this quarter higher than one quarter ago, but lower than one year ago > > Asking rental rates increased to $1.36 per square foot on a triplenet basis After three quarters of strong net absorption, Southern Nevada s retail market experienced negative 25,803 square feet of net absorption in the first quarter of 2018. Net absorption often decreases when new completions are light, and new completions totaled only 18,237 square feet this quarter. In addition, the closure of anchor retail locations continued to take a toll on the market. This caused the retail vacancy rate to increase to 8.2 percent from last quarter s 8.1 percent. Asking rental rates increased to $1.36 per square foot (psf) on a triple-net (NNN) basis from last quarter s $1.35 psf NNN. Historical Vacancy Rates and Asking Lease Rates 9.4% 9.2% $1.42 $1.40 Economic Indicators RETAIL Employment Market Indicators Relative to prior period Q1 2018 Q2 2018* VACANCY NET ABSORPTION CONSTRUCTION RENTAL RATE *Projected +1.6% Summary Statistics RETAIL Taxable Sales +1.2 RETAIL SF/Job -0.6% Q1 2018 Las Vegas Market Q1-17 Q4-17 Q1-18 9.0% $1.38 Vacancy Rate 8.4% 8.1% 8.2% 8.8% $1.36 8.6% $1.34 Asking Rent (PSF, NNN) $1.36 $1.35 $1.36 8.4% $1.32 8.2% $1.30 Net Absorption (SF) -17,825 319,223-25,803 8.0% $1.28 7.8% $1.26 New Completions (SF) 53,589 241,550 18,237 7.6% $1.24 7.4% 2 Q 2016 3 Q 2016 4 Q 2016 1 Q 2017 2 Q 2017 3 Q 2017 4 Q 2017 1 Q 2018 $1.22 Overall Asking Rents Vacancy Asking Rental Rate Per Square Foot Q1-17 Q4-17 Q1-18 Power Center $1.54 $1.55 $1.58 Vacancy might be lower at the end of 2018 than it is now, but the continued closure of large anchor stores in the Valley will act as a major head wind to lowering vacancy. Community Center $1.29 $1.33 $1.34 Neighborhood Center $1.49 $1.41 $1.35 Strip Center $1.24 $1.25 $1.28

According to the Nevada Department of Employment, Training and Rehabilitation, Southern Nevada s retail job market improved in January 2018, adding approximately 1,000 jobs since January 2017. Over this period the Valley added 300 jobs in the food & beverage stores sector and 100 jobs in health & personal care stores sector. In the food services and drinking places sector, which is not included in the retail category, Southern Nevada added 1,000 jobs since January 2017. Unemployment in the Las Vegas-Paradise MSA stood at 5.4 percent in January 2018, up from 5.1 percent in January 2017. From January 2017 to January 2018, total employment in Southern Nevada increased by 25,700 jobs, a 2.6 percent increase. Historical Net Absorption vs. Completions 450,000 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 0-50,000 2 Q 2016 3 Q 2016 4 Q 2016 1 Q 2017 2 Q 2017 3 Q 2017 4 Q 2017 1 Q 2018 The Nevada Department of Taxation reports that Clark County s taxable retail sales for the past twelve months (January 2017 to December 2017, the most recent month of data available) totaled $29.9 billion, up from $28.9 billion in the previous twelve months. In the past twelve months taxable sales were $4.8 billion in the automotive sector, $10.7 billion in food service and $14 billion in other retail (excluding gas stations). Net Absorption Occupancy vs. Retail Employment Completions The highest year-over-year growth in taxable retail sales in December 2017 were in miscellaneous retail (18.9 percent), home and garden stores (12.1 percent growth) and health and personal care stores (5.8 89,000 87,000 85,000 93.0% 92.5% 92.0% percent growth). Year-over-year taxable sales decreased in clothing 83,000 91.5% stores (negative 1.9 percent growth), electronics and appliance stores 81,000 91.0% (negative 1.9 percent growth) and sporting goods and hobby stores 79,000 90.5% (negative 6.9 percent). By comparison, non-store retailers posted 11.4 77,000 90.0% percent year-over-year growth. 75,000 2 Q 2016 3 Q 2016 4 Q 2016 1 Q 2017 2 Q 2017 3 Q 2017 4 Q 2017 1 Q 2018 89.5% A single 18,237 square foot strip retail center was completed in the Henderson submarket during the first quarter of 2018. The second half of 2018 will see the completion of up to 933,000 square feet of new retail space, most of it in the Henderson and Southwest submarkets. Over 1.0 million square feet of retail space is planned for completion in 2019 or beyond. Retail Jobs Occupancy Rate Net absorption was negative 25,803 square feet in the first quarter of 2018, a significant decrease from the 319,223 square feet of net absorption in the fourth quarter of 2017, and a small decrease from the negative 17,825 square feet of net absorption in the first quarter of 2017. Net absorption this quarter was highest in unanchored strip centers (55,290 square feet) and lowest in power centers (negative 103,685 square feet). Community centers had negative 44,038 square feet of net absorption, while neighborhood centers had positive 66,630 square feet of net absorption. The vacancy of five anchor tenants that totaled 154,325 square feet was a major contributor to the weak net absorption experienced this quarter, but those anchor closures do not tell the whole story. Along with those large vacations of space, the Valley vacated 293,140 square feet of smaller retail units, with spaces ranging from 688 to 9,945 square feet. 21 Las Vegas Research & Forecast Report Q1 2018 Retail Colliers International

Net absorption was positive in four of the Valley s eight submarkets this quarter, including Northwest (34,137 square feet), North Las Vegas (33,389 square feet), University East (21,004 square feet) and Downtown (1,442 square feet). Net absorption was negative in Henderson (negative 55,724 square feet), Southwest (negative 51,182 square feet), West Central (negative 8,094 square feet) and Northeast (negative 775 square feet). This was a partial reversal from recent history, during which the older east side of the Valley posted weaker demand for retail space than Henderson and the west side. Gross absorption of retail product totaled 508,901 square feet in the first quarter of 2018, higher than the first quarter of 2017 s gross absorption of 467,471 square feet. As alluded to above, five anchor retailers that occupied 154,325 square feet vacated in the first quarter of 2018. This was an acceleration of anchor retailer closures experienced in 2017 when eight retailers occupying 336,725 square feet vacated. Closures so far in 2018 included two Babies R Us locations, a Sav-a-Lot Grocery, a TJ Maxx and an Office Max. Toys R Us has announced the imminent closure of all 800 of its stores in the United States. One Toys R Us location in the University East submarket has already been vacated. Toys R Us has five additional locations in Southern Nevada. Two of these are outlet stores in regional malls and are not covered in this report. The other three locations total approximately 150,000 square feet. The addition of those stores to Valley vacancy will bring anchor closures at mid-year 2018 to the same level seen in 2017 at year s end. Retail vacancy in Southern Nevada was 8.2 percent in the first quarter of 2018, lower than one quarter ago when vacancy was 8.4 percent. Retail vacancy bounced between 8.1 and 8.4 percent over the past five quarters, with a general trend of decreasing vacancy. The last significant decrease in retail vacancy occurred in 2016 when vacancy decreased from 9.4 percent to 8.6 percent. Among submarkets, the Valley s highest vacancy this quarter was 12.8 percent in University East, while the lowest vacancy rate was 5.0 percent in Southwest, a sign of the demographic migration of the Valley s Retail Development Schedule Project Type Submarket Size (SF) Pre-Leasing Q3-2018 365,680 SF 40% Kaktus Life Strip Retail Southwest 28,800 SF 75% Maryland Parkway Sprouts Neighborhood Center University East 51,000 SF 72% Mountains Edge Marketplace Community Center Southwest 133,000 SF 31% Shoppes on the Parkway Strip Retail Henderson 58,000 SF 0% Warm Springs Road Sprouts Neighborhood Center Southwest 94,880 SF 48% Q4-2018 567,769 SF 37% Gardner Plaza Strip Retail Henderson 21,860 SF 0% Shanghai Plaza Strip Retail West Central 80,000 SF 0% St Rose Square Neighborhood Center Henderson 465,909 SF 45% 2019 1,167,282 SF 42% 215 Curve Community Center Southwest 207,000 SF 76% Cadence Village Center Neighborhood Center Henderson 153,000 SF 85% Centennial Hills Center Strip Retail Northwest 31,000 SF 0% Craig & Camino Al Norte Strip Retail North Las Vegas 123,000 SF 0% Quail Bonita Strip Retail Henderson 42,000 SF 21% Rainbow & Arby Neighborhood Center Southwest 61,282 SF 50% Sahara Crossing Strip Retail Downtown 41,000 SF 0% Silverado Promenade Neighborhood Center University East 130,000 SF 100% The Bend Community Center Southwest 200,000 SF 0% The Gateway Strip Retail Henderson 35,000 SF 57% Union Village Strip Retail Henderson 125,000 SF 0% University Gateway Strip Retail University East 19,000 SF 80% 22 Las Vegas Research & Forecast Report Q1 2018 Retail Colliers International

Single-Tenant Retail 2014 2015 2016 2017 2018 YTD No. Sales 61 66 68 52 16 Square Footage Sold 643,000 981,000 572,000 409,000 48,000 Sales Volume $187.5 MM $306.2 MM $176.6 MM $150.1 MM $21.0 MM Average Price/SF $291.50 $312.00 $308.44 $367.30 $440.22 Average Sale Size (SF) 10,500 14,900 8,400 7,900 3,000 Cap Rate 7.2% 7.2% 7.0% 6.3% 4.9% Shopping Center Retail 2014 2015 2016 2017 2018 YTD No. Sales 60 58 41 47 13 Square Footage Sold 4,025,000 3,195,000 2,528,000 4,590,000 838,000 Sales Volume $504.5 MM $588.1 MM $419.7 MM $696.0 MM $153.2 MM Average Price/SF $125.33 $184.08 $166.00 $151.63 $182.71 Average Sale Size (SF) 67,000 55,000 62,000 98,000 64,500 Cap Rate 8.9% 7.7% 6.7% 8.7% 8.4% middle class from the east side of the Valley where they settled during the 1970 s and 1980 s, to the west side of the Valley and Henderson. Vacancy decreased in the first quarter of 2018 in Downtown, North Las Vegas, Northwest and University East, bucking the trend of retail migration to the west from the east, but probably not ending it. The demographic shift in Southern Nevada is not just one of population, but also of wealth. The older east side of the Valley or perhaps more specifically the northeast quadrant of the Valley has 382,000 households compared to the remainder of the Valley, which has 371,000 households. The older east side is still growing, with household growth of 8.9 percent from 2010 to 2018, but the younger west side s population grew 16.4 percent over the same period. This disparity in population growth is projected to continue, with the west side projected to have household growth of 8.1 percent over the next five years compared to 6.0 percent for the east side. The more important difference is in wealth moving west. The average household income on the east side is $57,000, compared to average household income of $92,000 on the west side. Just last year, the average household income on the west side of town was $88,000 a 4.5 percent increase compared to average household income of $56,000 on the east side. The middle and upper classes are moving from east to west, and though they are being replaced by some new residents on the east side, those new residents are less wealthy, and that has an impact on retail real estate. The average asking rental rate for retail space in Southern Nevada was $1.36 psf NNN in the first quarter of 2018, the same as in the first quarter of 2017. Over the past five quarters the average asking rental rate bounced between $1.34 psf and $1.36 psf with no clear trend higher or lower. Three submarkets saw asking rates increase this quarter: Vacancy decreased in the first quarter of 2018 in Downtown, North Las Vegas, Northwest and University East, bucking the trend of retail migration to the west from the east, but probably not ending it. 23 Las Vegas Research & Forecast Report Q1 2018 Retail Colliers International

Henderson ($0.08 psf), North Las Vegas ($0.06 psf) and University East ($0.02 psf). Asking rates decreased in Northwest ($0.06 psf), Southwest ($0.06 psf), West Central ($0.03 psf) and Downtown ($0.02 psf). Asking rents remained the same in the Northeast submarket. Rates increased in power centers ($0.03 psf), strip retail centers ($0.03 psf) and community centers ($0.01 psf), and decreased in neighborhood centers ($0.05). Single-tenant retail investment sales volume in the first quarter of 2018 was $21.1 million in sixteen sales totaling 48,000 square feet at an average price per square foot of $440.22. Single-tenant retail sales volume has been on a downward trajectory since 2015, and activity so far this year suggests that the trend will continue in 2018. The average cap this quarter was 4.9 percent, a significant decrease from 2017 s average cap rate of 6.3 percent. Shopping center investment sales volume in the first quarter of 2018 was $153.2 million in thirteen sales totaling 838,000 square feet at an average price per square foot of $187.71. The average size of a shopping center sold in the first quarter of 2018 was 64,500 square feet, lower than 2017 s average and more in line with what we have seen in years previous to 2017. The average cap this quarter was 8.4 percent, a decrease from 2017 from 2017 s average cap rate of 8.7 percent. Households (2018) Avg. HH Income (2018) Occupied Retail Space (2016 Avg.) Occupied Retail Space (2017 Avg.) Downtown 38,400 $42,000 2,083,000 2,030,000 Henderson 118,800 $90,000 9,547,000 9,579,000 North Las Vegas 75,600 $68,000 5,681,000 5,782,000 Northeast 83,700 $56,000 3,119,000 3,102,000 Northwest 190,300 $89,000 12,860,000 12,966,000 Southwest 101,500 $85,000 7,484,000 7,741,000 University East 109,500 $63,000 7,962,000 7,996,000 West Central 57,000 $55,000 6,084,000 6,191,000 Source of Demographic Data: Claritas Southern Nevada s retail market continued to feel the impact of two long-term trends, the continued impact of e-commerce on brick-andmortar retail (a national trend) and the demographic trend of people and wealth moving from the east side to the west side of the Valley. This quarter, demographics had less impact than e-commerce, with submarkets on the east side of town posting some minor gains, and the Henderson submarket and west side submarkets feeling the pain of anchor retailers closing their doors. Known anchor closures yet to come this year will impact Henderson, North Las Vegas and the West Central submarket, so the long-term demographic trend might be drowned out this year in the retail market. The overall retail vacancy rate and asking rental rate have shown little movement either way over the past five quarters, and we think this trend will continue in 2018. Vacancy might be lower at the end of 2018 than it is now, but the continued closure of large anchor stores in the Valley will act as a major head wind to lowering vacancy. 24 Las Vegas Research & Forecast Report Q1 2018 Retail Colliers International

Significant Retail Sale Activity 215 NORTH LAS VEGAS Best in the West 415,642 SF - $87,000,000 $209.31/SF NORTHWEST 95 February 2018 Multi-Tenant/Best Buy 15 Red Rock Shopping Center 3,960 SF - $3,840,000 WEST CENTRAL DOWN TOWN NORTHEAST LAS VEGAS $969.70/SF January 2018 Single-Tenant/Krispy Kreme Burlington Coat 122,133 SF - $15,250,000 95 $124.86/SF January 2018 UNIVERSITY AIRPORT Single-Tenant/Burlington Coat Winterwood Plaza 215 24,606 SF - $3,750,000 $152.40/SF SOUTHWEST HENDERSON February 2018 Multi-Tenant/Pizza Hut RESORT CORRIDOR Janita Plaza 25,185 SF - $2,811,000 $111.61/SF February 2018 Multi-Tenant/Subway Lease Activity Property Name Tenant Lease Date Lease Term Size Lease Rate Type Blue Diamond Market Place AutoZone Inc Jan 2018 180 months 7,500 SF $0.98 NNN Strip Center Green Valley Town & Country H&R Block Jan 2018 60 months 3,400 SF $1.46 NNN Neighborhood Center Flamingo Arville Plaza Starbucks Jan 2018 120 months 2,849 SF $3.38 NNN Strip Center Horizon Pointe DFB LLC Mar 2018 60 months 2,145 SF $1.91 NNN Neighborhood Center Sunridge Valley Rebel Kitchen Jan 2018 36 months 1,917 SF $2.01 NNN Strip Center 25 Las Vegas Research & Forecast Report Q1 2018 Retail Colliers International

Market Comparisons - Las Vegas Retail Market TYPE TOTAL INVENTORY SF DIRECT VACANT SF DIRECT VACANCY RATE SUBLEASE VACANT SF TOTAL VACANT SF VACANCY RATE CURRENT QUARTER VACANCY RATE PRIOR QUARTER NET ABSORPTION CURRENT QTR SF NET ABSORPTION YTD SF COMPLETIONS CURRENT QTR SF COMPLETIONS YTD SF UNDER CONSTRUCTION SF PLANNED CONSTRUCTION SF WEIGHTED AVG ASKING RENTAL RATE DOWNTOWN PC - - n/a - - n/a n/a - - - - - - $- CC 731,186 67,332 9.2% - 67,332 9.2% 9.0% (1,170) (1,170) - - - - $1.31 NC 588,070 105,496 17.9% - 105,496 17.9% 18.1% 787 787 - - - - $0.93 SC 989,530 86,001 8.7% - 86,001 8.7% 8.9% 1,825 1,825 - - - 40,500 $1.41 Total 2,308,786 258,829 11.2% - 258,829 11.2% 11.3% 1,442 1,442 - - - 40,500 $1.25 HENDERSON PC 2,896,215 139,233 4.8% - 139,233 4.8% 2.7% (61,657) (61,657) - - - - $1.90 CC 2,724,168 138,432 5.1% - 138,432 5.1% 5.4% 9,392 9,392 - - - - $1.53 NC 2,930,045 363,003 12.4% 118,847 481,850 16.4% 16.8% 9,396 9,396 - - - 618,422 $1.31 SC 1,948,160 323,933 16.6% 3,585 327,518 16.8% 15.3% (12,855) (12,855) 18,237 18,237 58,000 323,720 $1.32 Total 10,498,588 964,601 9.2% 118,847 1,083,448 10.3% 9.6% (55,724) (55,724) 18,237 18,237 58,000 942,142 $1.43 NORTH LAS VEGAS PC 774,065 31,979 4.1% - 31,979 4.1% 4.1% - - - - - - $2.25 CC 2,150,284 122,616 5.7% - 122,616 5.7% 5.9% 3,900 3,900 - - - - $1.62 NC 2,025,313 161,297 8.0% 2,687 163,984 8.1% 8.4% 6,615 6,615 - - - - $1.70 SC 1,289,578 125,017 9.7% - 125,017 9.7% 11.5% 22,874 22,874 - - - 122,718 $1.50 Total 6,239,240 440,909 7.1% 2,687 443,596 7.1% 7.6% 33,389 33,389 - - - 122,718 $1.66 NORTHEAST PC - - n/a - - n/a n/a - - - - - - $- CC 1,295,615 81,052 6.3% - 81,052 6.3% 6.3% 1,080 1,080 - - - - $1.59 NC 1,307,891 85,721 6.6% 43,687 129,408 9.9% 9.8% (1,154) (1,154) - - - - $1.21 SC 769,047 112,109 14.6% - 112,109 14.6% 14.5% (701) (701) - - - - $0.96 Total 3,372,553 278,882 8.3% 43,687 322,569 9.6% 9.5% (775) (775) - - - - $1.22 NORTHWEST PC 3,171,110 302,030 n/a - 302,030 9.5% 9.4% (3,682) (3,682) - - - - $1.56 CC 4,800,446 104,969 2.2% 75,636 180,605 3.8% 3.7% (2,790) (2,790) - - - - $1.98 NC 3,492,056 287,262 8.2% 38,181 325,443 9.3% 9.8% 18,351 18,351 - - - - $1.38 SC 2,476,347 194,882 7.9% - 194,882 7.9% 8.8% 22,258 22,258 - - - 31,000 $1.37 Total 13,939,959 889,143 6.4% 113,817 1,002,960 7.2% 7.4% 34,137 34,137 - - - 31,000 $1.51 SOUTHWEST PC 944,314 54,432 5.8% - 54,432 5.8% 1.9% (36,732) (36,732) - - - - $1.75 CC 2,555,783 134,491 5.3% - 134,491 5.3% 4.2% (26,224) (26,224) - - 133,000 407,250 $1.61 NC 2,472,100 95,649 3.9% 3,234 98,883 4.0% 4.4% 8,146 8,146 - - - 119,880 $1.78 SC 2,362,182 135,115 5.7% 3,469 138,584 5.9% 5.9% 3,628 3,628 - - - 55,125 $1.66 Total 8,334,379 419,687 5.0% 3,234 422,921 5.1% 4.5% (51,182) (51,182) - - 133,000 582,255 $1.68 UNIVERSITY EAST PC 1,210,223 125,967 10.4% - 125,967 10.4% 10.8% 5,053 5,053 - - - - $1.12 CC 2,946,813 376,396 12.8% - 376,396 12.8% 13.2% (17,216) (17,216) - - - - $1.00 NC 2,018,675 157,496 7.8% 163,160 320,656 15.9% 17.0% 21,521 21,521 - - 51,000 129,588 $1.38 SC 2,990,552 512,823 17.1% - 512,823 17.1% 17.6% 11,646 11,646 - - - 19,124 $1.11 Total 9,166,263 1,172,682 12.8% 163,160 1,335,842 14.6% 15.1% 21,004 21,004 - - 51,000 148,712 $1.11 WEST CENTRAL PC 1,138,224 63,743 5.6% - 63,743 5.6% 5.0% (6,667) (6,667) - - - - $1.38 CC 1,673,939 222,988 13.3% - 222,988 13.3% 12.7% (11,010) (11,010) - - - - $1.09 NC 1,777,642 112,401 6.3% 50,121 162,522 9.1% 9.3% 2,968 2,968 - - - - $1.02 SC 2,167,098 125,491 5.8% - 125,491 5.8% 6.1% 6,615 6,615 - - - 80,000 $1.18 Total 6,756,903 524,623 7.8% 50,121 574,744 8.5% 8.4% (8,094) (8,094) - - - 80,000 $1.13 MARKET TOTAL PC 10,134,151 717,384 7.1% - 717,384 7.1% 6.1% (103,685) (103,685) - - - - $1.58 CC 18,878,234 1,248,276 6.6% 75,636 1,323,912 7.0% 6.9% (44,038) (44,038) - - 133,000 407,250 $1.34 NC 16,611,792 1,368,325 8.2% 419,917 1,788,242 10.8% 11.2% 66,630 66,630 - - 51,000 867,890 $1.35 SC 14,992,494 1,615,371 10.8% 7,054 1,622,425 10.8% 11.1% 55,290 55,290 18,237 18,237 58,000 672,187 $1.28 Total 60,616,671 4,949,356 8.2% 502,607 5,451,963 9.0% 9.0% (25,803) (25,803) 18,237 18,237 242,000 1,947,327 $1.36 QUARTERLY COMPARISON AND TOTALS Q1-18 60,616,671 4,949,356 8.2% 502,607 5,451,963 9.0% 9.0% (25,803) (25,803) 18,237 18,237 242,000 1,947,327 $1.36 Q4-17 60,598,434 4,905,316 8.1% 527,950 5,433,266 9.0% 9.2% 319,223 497,892 241,550 414,359 209,237 2,143,245 $1.35 Q3-17 60,356,884 4,982,989 8.3% 568,785 5,551,774 9.2% 9.2% 68,470 178,669 119,220 172,809 392,787 1,850,620 $1.34 Q2-17 60,237,664 4,932,239 8.2% 593,307 5,525,546 9.2% 9.4% 128,024 110,199 0 53,589 512,007 1,770,620 $1.36 Q1-17 60,237,664 5,060,263 8.4% 580,286 5,640,549 9.4% 8.9% (17,825) (17,825) 53,589 53,589 446,550 1,183,806 $1.36 PC = Power Center CC = Community Center NC = Neighborhood Center SC = Strip Center 26 Las Vegas Research & Forecast Report Q1 2018 Retail Colliers International

Research & Forecast Report LAS VEGAS MULTIFAMILY Q1 2018 A Year of Expansion > > Multifamily vacancy decreased to 3 percent in the fourth quarter of 2017 Economic Indicators > > Development heated up, with 751 new multifamily units completed in the fourth quarter EXISTING HOME Median Price NEW HOME Median Price THIRTY YEAR Mortgage Rate > > Demand beat supply, sending rental rates up to $1,001 per unit +0.2 According to statistics provided by REIS, multifamily vacancy in Southern Nevada decreased by 0.2 points in the fourth quarter of 2017 (the most recent quarter of available data) to 3.0 percent. Vacancy this quarter was 0.1 point higher than one year ago. Class A properties were 3.4 percent vacant in the fourth quarter, 0.2 points lower than one quarter ago. Class B/C properties were 2.6 percent vacant, 0.2 points lower than one quarter ago. Unemployment in the Las Vegas-Paradise MSA stood at 5.4 percent as of January 2018, up from 5.1 percent in January 2017. From January 2017 to January 2018, total employment in Southern Nevada increased by 25,662 jobs, a 2.6 percent increase. +7.1% +5.5% Market Indicators Points Relative to prior period Q4 2017 Q1 2018* VACANCY NET ABSORPTION COMPLETIONS RENTAL RATE Historical Vacancy Rates and Rental Rates 3.3% 3.2% 3.1% 3.0% 2.9% 2.8% 2.7% $1,020 $1,000 $980 $960 $940 $920 $900 $880 *Projected Summary Statistics Las Vegas Market Q4-16 Q3-17 Q4-17 Vacancy Rate 2.9% 3.2% 3.0% Asking Rent (PSF, NNN) $959 $988 $1,001 Net Absorption YTD (Units) 139 104 751 New Completions YTD (Units) 288 643 497 2.6% 1 Q 2016 2 Q 2016 3 Q 2016 4 Q 2017 1 Q 2017 2 Q 2017 3 Q 2017 4 Q 2017 $860 Vacancy Rate Average Rental Rate Overall Asking Rents Two factors should keep the multifamily market healthy over the next few years, population and home prices. Per Unit Per Month Q4-16 Q3-17 Q4-17 Class A $1,009 $1,136 $1,155 Class B/C $766 $831 $845

The majority of the Valley s new jobs were in education and health services (5,400 jobs), construction (4,100 jobs) and transportation and warehousing (3,000 jobs). Jobs were lost on a year-over-year basis in leisure & hospitality (1,600 jobs) and information (100 jobs). Last quarter, REIS reported negative net absorption for Southern Nevada s multifamily market. Those figures were subsequently revised to reflect low, but not negative, net absorption in the third quarter. It was followed by a strong rebound in the fourth quarter, which posted 751 units of net absorption. This was the strongest quarterly net absorption posted in 2017. Net absorption for 2017 as a whole was 2,156 units. Demographic trends suggest that rental households will expand by an average of 4,450 units per year for the next five years, with most of that expansion in the Northwest/ Southwest and Henderson/Green Valley submarkets. Historical Net Absorption vs. Completions Net Absorption vs. Completions 1,400 1,200 1,000 800 600 400 200 0 1 Q 2016 2 Q 2016 3 Q 2016 4 Q 2017 1 Q 2017 2 Q 2017 3 Q 2017 4 Q 2017 Net Absorption (Units) Completions (Units) All eight of the Valley s submarkets had positive net absorption in the fourth quarter of 2017, with the highest net absorption occurring in the Northwest/Southwest submarket (235 units). For 2017 as a whole, only two submarkets, Downtown and University, suffered negative net absorption. The highest net absorption for 2017 as a whole was 1,401 units in the Northwest/Southwest submarket, followed by the Henderson/Green Valley submarket with 683 units of net absorption. PROJECT UNDER CONSTRUCTION SUBMARKET UNITS 1ST QUARTER 2018 1,416 Dune Luxury Apartments Henderson/GV 398 Ovation Inspiro Northwest/Southwest 306 Boulder Pines Family Apartments East Las Vegas 264 Picerne Oquendo Northwest/Southwest 244 Warmington Solana Apartments Northwest/Southwest 204 2ND QUARTER 2018 1,814 Castile Apartments & Senior Living Henderson/GV 498 The Abode Red Rock Northwest/Southwest 308 Level 25 at Oquendo Northwest/Southwest 244 Fremont9 Downtown 232 U District The Degree Henderson/GV 226 One60 Henderson/GV 129 Red Rock Point Senior Living Northwest/Southwest 128 C 3 Lofts Downtown 49 3RD QUARTER 2018 1,684 The Gallery Phase II Northwest/Southwest 325 Loftus Apartments West Central 295 Spur Apartments Henderson/GV 288 Union Plaza Apartments Henderson/GV 275 Vue at Centennial Phase II North Las Vegas 261 Casabella Apartments Henderson/GV 120 Evo Apartments Phase III Northwest/Southwest 120 4TH QUARTER 2018 726 Elysian at Flamingo Northwest/Southwest 364 Silverado West Apartments Henderson/GV 362 2019 1,158 Empire Apartments Henderson/GV 536 UNLV Village University 220 Kaktus Life Henderson/GV 210 Fortune Living Henderson/GV 192 Sales (Units) vs. Price Per Unit Sales (Units) vs. Price Per Unit 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 1 Q 2016 2 Q 2016 3 Q 2016 4 Q 2017 1 Q 2017 2 Q 2017 3 Q 2017 4 Q 2017 Total Sales (Units) Average Price Per Unit $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $0 28 Las Vegas Research & Forecast Report Q1 2018 Multifamily Colliers International

Demographics Submarket Estimated Households (2018) Renter Occupied (2018) Median Household (2018) Average Household (2018) Proj. Annual Growth Rental Households (2018-2023) Downtown 65,100 61% $32,700 2.8 370 East Las Vegas 68,900 44% $44,100 2.7 375 Henderson/Green Valley 159,600 37% $67,500 2.6 895 North Las Vegas 136,500 35% $57,600 3.1 735 Northeast 51,200 49% $40,800 3.4 319 Northwest/Southwest 215,200 36% $68,600 2.6 1,229 University 36,300 77% $34,700 2.3 248 West Central 40,500 61% $42,900 2.3 279 TOTAL 773,300 43% $55,400 2.7 4,450 Source: Environics We have been writing about multifamily development in this report for the past two years, but we are about to see it explode in 2018. According to REIS, 172 units of new multifamily were completed in Southern Nevada in the fourth quarter of 2017. This brought year-to-date completions to 2,338 units, a 1.6 percent increase in the Valley s multifamily inventory. A total of 6,797 units were under construction in the fourth quarter of 2017. We think 1,416 units will be completed in the first quarter of 2018, and a total of 5,640 units will be completed in 2018 as a whole. This would represent a 3.9 percent increase in multifamily inventory. The average asking rent for multifamily was $1,001 per unit in the fourth quarter of 2017, an increase of $16 per unit from the third quarter of 2017, and an increase of $42 per unit since the fourth quarter of 2016. This represented 4.4 percent rent growth year-over-year. Class A properties saw asking rates increase by 5.2 percent year-over-year to $1,155 per unit, while Class B/C properties saw a 2.9 percent increase to $845 per unit. Multifamily sales decreased in the fourth quarter of 2017 compared to the fourth quarter of 2016, with 5,567 units selling at an average price per unit of $86,137. The fourth quarter of 2016 had 8,373 units sold at an average sales price of $94,773 per unit. Initial estimates for first quarter 2018 sales show 3,522 units were sold at an average price per unit of $127,962. Among the institutional entities purchasing multifamily in Southern Nevada in 2017 were Blackstone Group, Westland Real Estate Group, MG Properties Group, 3D Investments, Langdon Street Capital and Blackhawk Capital Group. After a small hiccup in the third quarter of 2017, Southern Nevada s multifamily market got back down to business. Net absorption improved dramatically in the fourth quarter of 2017 compared to the third quarter of 2017, bringing vacancy down to 3 percent and boosting the average rental rates to over $1,000. Two factors should keep the multifamily market healthy over the next few years, population and home prices. While Southern Nevada s population is not growing as quickly as it did a decade ago, it is still growing and is predicted to add over 4,500 rental households per year over the next five years. This growth in rental households is partially because apartment rents remain less expensive than monthly payments for new and resale homes, and the barrier of entry for apartments is substantially lower than for homes. Sales Data 2013 2014 2015 2016 2017 Units Sold 17,808 14,019 15,408 22,074 18,510 Average Price Per Unit $75,600 $73,627 $71,836 $96,720 $105,618 Cap Rate 5.7% 6.0% 7.3% 5.5% 5.8% 29 Las Vegas Research & Forecast Report Q1 2018 Multifamily Colliers International

215 NORTH LAS VEGAS Significant Multifamily Sales Activity Elysian at StoneLake Apartments 360 Units - $84,600,000 NORTHEAST $235,000/Unit December 2017 95 15 Year Built - 2017 DOWNTOWN Promenade at Sahara 312 Units - $23,300,000 $74,700/Unit Jan 2018 Year Built - 1983 WEST CENTRAL 95 EAST Vintage Point 368 Units - $49,250,000 $133,800/Unit December 2017 NORTHWEST/ SOUTHWEST UNIVERSITY Year Built - 1993 Cambridge Towers 215 209 Units - $22,500,000 $107,700/Unit HENDERSON/ GREEN VALLEY Jan 2018 Year Built - 1974 Terra Cotta Villas 136 Units - $14,250,000 $104,800/Unit December 2017 Year Built - 1988 Sales Activity Continued Property Name Sale Date Units Price Price/Unit Year Built Peccole Ranch Dec 2017 350 $62,750,000 $179,300 1996 Pinnacle at Flamingo West Dec 2017 324 $52,250,000 $161,300 1998 2200 North Torrey Pines Dec 2017 320 $36,350,000 $113,600 1988 The Constellation Dec 2017 124 $25,223,000 $203,400 2016 Mark I Apartments Feb 2018 113 $15,870,000 $140,400 1975 Source: Real Capital Analytics 30 Las Vegas Research & Forecast Report Q1 2018 Multifamily Colliers International

Market Comparisons - Las Vegas Multifamily Market CLASS TOTAL INVENTORY UNITS CURRENT VACANCY RATE PRIOR QTR VACANCY RATE NET ABSORPTION NET ABSORPTION YTD UNITS CURRENT QTR COMPLETIONS YTD UNIT COMPLETIONS UNDER CONSTRUCTION UNITS PLANNED CONSTRUCTION UNITS TOTAL SALES UNITS AVERAGE PRICE PER UNIT AVERAGE RENTAL RATE DOWNTOWN A 2,773 2.0% 1.9% (2) (21) - - 281 2,451 - n/a $961 B/C 13,394 1.9% 2.2% 43 (49) - - - - 1,113 $58,633 $784 Total 16,167 1.9% 2.2% 41 (70) - - 281 2,451 1,113 $58,633 $814 EAST LAS VEGAS A 6,381 2.1% 2.6% 34 59 - - 384 50 - n/a $974 B/C 9,346 2.8% 3.1% 29 (27) - - - - 383 $99,922 $793 Total 15,727 2.5% 2.9% 63 32 - - 384 50 383 $99,922 $867 HENDERSON/GREEN VALLEY A 21,033 3.6% 2.8% 234 659 417 840 2,887 1,709 - n/a $1,257 B/C 8,068 3.2% 2.7% (44) 24 - - - - 688 $146,802 $1,081 Total 29,101 3.5% 2.8% 190 683 417 840 2,887 1,709 688 $146,802 $1,208 NORTH LAS VEGAS A 13,017 2.9% 3.1% 28 34-110 261 479 - n/a $1,001 B/C 9,632 2.2% 2.2% 72 44 80 80 - - 248 $60,685 $814 Total 22,649 2.6% 2.7% 100 78 80 190 261 479 248 $60,685 $921 NORTHEAST A 2,172 4.5% 4.5% - (40) - - - - - n/a $843 B/C 6,643 2.9% 3.3% 26 85 - - - - 1,138 $74,518 $781 Total 8,815 3.3% 3.6% 26 45 - - - - 1,138 $74,518 $796 NORTHWEST/SOUTHWEST A 19,250 3.8% 4.9% 217 1,374-1,308 2,243 465 - n/a $1,330 B/C 5,452 1.2% 1.5% 18 27 - - - - - n/a $1,134 Total 24,702 3.2% 4.2% 235 1,401-1,308 2,243 465 - n/a $1,287 UNIVERSITY A 2,180 1.7% 2.6% 18 6 - - 446 125 - n/a $976 B/C 12,321 4.3% 4.5% 25 (58) - - - - 1,053 $74,023 $759 Total 14,501 3.9% 4.2% 43 (52) - - 446 125 1,053 $74,023 $792 WEST CENTRAL A 6,146 4.6% 5.0% 25 31 - - 295 - - n/a $1,033 B/C 6,860 1.4% 1.8% 28 8 - - - - 944 $102,966 $786 Total 13,006 2.9% 3.3% 53 39 - - 295-944 $102,966 $903 MARKET TOTAL A 72,952 3.4% 3.6% 554 2,102 417 2,258 6,797 5,279 - n/a $1,155 B/C 71,716 2.6% 2.8% 197 54 80 80 n/a n/a 5,567 $86,137 $845 Total 144,668 3.0% 3.2% 751 2,156 497 2,338 6,797 5,279 5,567 $86,137 $1,001 QUARTERLY COMPARISON AND TOTALS Q4-17 144,668 3.0% 3.2% 751 2,156 497 2,338 6,797 5,279 5,567 $86,137 $1,001 Q3-17 144,171 3.2% 2.8% 104 1,405 643 1,841 6,000 10,271 3,747 $126,052 $988 Q2-17 143,528 2.8% 3.1% 621 1,301 256 1,198 5,786 6,208 5,634 $106,085 $978 Q1-17 143,272 3.1% 2.9% 680 680 942 942 6,047 7,175 3,562 $113,829 $968 Q4-16 142,775 2.9% 2.8% 139 2,923 288 1,670 3,042 7,525 8,373 $94,773 $959 The information contained in this report was provided by sources deemed to be reliable, however, no guarantee is made as to the accuracy or reliability. As new, corrected or updated information is obtained, it is incorporated into both current and historical data, which may invalidate comparison to previously issued reports. 31 Las Vegas Research & Forecast Report Q1 2018 Multifamily Colliers International

Research & Forecast Report LAS VEGAS MEDICAL OFFICE Q1 2018 Diagnosis: Recovery > > Southern Nevada s medical office market saw strong net absorption in the first quarter of 2018 > > This brought vacancy down to 13.5 percent > > Asking rental rates increased to $2.20 psf FSG Southern Nevada s medical office market followed up a strong 2017 with a solid first quarter in 2018. Net absorption was 108,228 square feet, an improvement over net absorption in the first quarter of 2017, though not the highest net absorption recorded during the current recovery period. The vacancy rate decreased to 13.5 percent, the lowest medical office vacancy rate since the first quarter of 2011. The average asking rental rate was $2.20 per square foot (psf) on a full service gross (FSG) basis. According to the Nevada Department of Employment, Training and Rehabilitation, Southern Nevada s medical office job market was strong in January 2018 (the latest month of data available) compared with January 2017. The ambulatory health care sector, Economic Indicators HEALTHCARE Employment +4.6% Market Indicators HEALTHCARE Spending +42.2 MEDICAL SF/Job +3.8% Q1 2018 Relative to prior period Q1 2018 Q2 2018* VACANCY NET ABSORPTION COMPLETIONS RENTAL RATE *Projected Historical Vacancy Rates and Rental Rates 18.0% 17.0% 16.0% 15.0% 14.0% $2.30 $2.25 $2.20 $2.15 $2.10 Summary Statistics Las Vegas Market Q1-17 Q4-17 Q1-18 Vacancy Rate 16.3% 14.2% 13.5% Asking Rent (PSF, FSG) $2.19 $2.19 $2.20 Net Absorption (SF) 27,039 61,903 108,228 New Completions (SF) 86,050 0 60,500 13.0% $2.05 Overall Asking Rents 12.0% 1 Q 2016 2 Q 2016 3 Q 2016 4 Q 2016 1 Q 2017 2 Q 2017 3 Q 2017 4 Q 2017 1 Q 2018 $2.00 Per Square Foot Q1-17 Q4-17 Q1-18 Class A $2.67 $2.74 $2.75 Class B $2.20 $2.17 $2.18 Vacancy Rate Rental Rate We think medical office vacancy will decrease to near 10 percent by the end of 2018, just a bit higher than the average 8.6 percent vacancy in the market prior to the Great Recession. Class C $1.82 $1.85 $1.85

which has the largest impact on the medical office market, increased by 2,400 jobs year-over-year. The hospital sector increased by 800 jobs over the same period. Unemployment in the Las Vegas-Paradise MSA stood at 5.4 percent in January 2018, up from 5.1 percent in January 2017. From January 2017 to January 2018, total employment in Southern Nevada increased by 25,700 jobs, a 2.6 percent increase. Historical Net Absorption vs. Completions 250,000 200,000 150,000 The Nevada Department of Taxation reported that taxable spending on 100,000 ambulatory health care services in Clark County over the past twelve months (January 2017 to December 2017, the most recent month of 50,000 data available) totaled $90.9 million dollars, a 14.5 percent increase in 0 spending over the previous twelve months. Taxable sales in hospitals decreased 9.7 percent year-over-year to $29.9 million. Taxable sales in nursing and residential care facilities increased 37.6 percent yearover-year to $1.7 million. -50,000 1 Q 2016 2 Q 2016 3 Q 2016 Net Absorption 4 Q 2016 1 Q 2017 2 Q 2017 3 Q 2017 Completions 4 Q 2017 1 Q 2018 Despite the impressive improvement Southern Nevada s medical office market staged over the past four quarters, there appears to be no hurry to expand the Valley s medical office inventory. One new building, a 60,500 square foot Class B medical building in the Northwest submarket was completed in the first quarter of 2018. As it stands, one additional 43,777 square foot building is slated for completion by the end of 2018, with an additional 213,000 square feet of medical office space planned for completion in 2019. If the medical office market continue to show improvement it is likely this state of affairs will change. Healthcare Jobs vs. Occupancy Rate 90.0% 89.0% 88.0% 87.0% 86.0% 85.0% 84.0% 83.0% 82.0% 18,000 17,500 17,000 16,500 16,000 15,500 15,000 14,500 14,000 Vacancy in medical office space decreased in the first quarter of 2018 to 13.5 percent, a decrease of 2.8 points from the first quarter of 2017. The highest vacancy rates this quarter were in the Southwest (24.4 percent) and Airport (20.2 percent) submarkets. The lowest vacancy rates were 81.0% 80.0% 1 Q 2016 2 Q 2016 3 Q 2016 4 Q 2016 Healthcare Jobs 1 Q 2017 2 Q 2017 3 Q 2017 4 Q 2017 Occupancy Rate 1 Q 2018 13,500 13,000 in Downtown (8.4 percent) and Northwest (9.0 percent). Vacancy was static in the Airport and Downtown submarkets, decreased in East Las Vegas, North Las Vegas, Northwest, Southwest and West Central, and increased by 0.1 point in Henderson. In the first quarter of 2018 Southern Nevada absorbed 108,228 square feet of medical office space. This put 2018 on pace to equal or exceed 2017 s record level of net absorption. Assuming medical office development remains light in 2018, another year like 2017 would bring vacancy down to 9.8 percent. The weighted average asking rental rate for medical office space in the first quarter of 2018 was $2.20 psf FSG. This was $0.01 higher than one year ago. Asking rates showed significant growth in 2017, increasing from $2.14 psf FSG in the fourth quarter of 2016 to a recent peak of $2.24 psf FSG in the third quarter of 2017. Since then, they retreated and plateaued. Continued strong demand should cause a renewal of rent growth by the end of 2018. 33 Las Vegas Research & Forecast Report Q1 2018 Medical Office Colliers International

The lowest average asking rate for medical office space in 2017 was in the East Las Vegas and West Central submarkets at $1.90 psf, followed by Airport ($1.92 psf) and Downtown ($1.94 psf). These submarkets represent the portion of the Valley built from the 1960 s to the 1980 s. The Northwest submarket continued to be the Valley s most expensive submarket for medical office with an asking rate at $2.56 psf, followed by Southwest ($2.32 psf) and Henderson ($2.31 psf). The largest increase in the weighted average asking rate was in North Las Vegas at $0.05 psf. The largest decrease was $0.05 psf in the West Central submarket. Investment sales volume of medical office in the first quarter of 2018 was $49.2 million in three sales totaling 150,668 square feet at an average sales price was $326.51 psf. This was a higher average sales price than in the four previous years. No cap rate was available for these sales. After a tumultuous run during the post-great Recession years, Southern Nevada s medical office market has made rapid strides over the past two years. Increased healthcare spending was no doubt a part of this improvement, but a lack of uncertainty at the legislative level for now also helped. The transition from single doctor practices to medical groups and from traditional hospital care to mini-hospitals and retail health clinics continued to impact the medical office market, but over the past seven quarters the Valley saw improvement in the market instead of volatility. We think medical office vacancy will decrease to near 10 percent by the end of 2018, just a bit higher than the average 8.6 percent vacancy in the market prior to the Great Recession. Office Development Schedule PROJECT CLASS SUBMARKET SIZE PRE-LEASING Q3-2018 43,777 SF 57% Cimarron Courtyard 3 B Southwest 43,777 SF 57% 2019 212,527 SF 0% 6060 S Fort Apache A Southwest 45,000 SF 0% Cimarron Courtyard 4 B Southwest 43,777 SF 0% Craig & Camino Al Norte C North Las Vegas 107,000 SF 0% The Gateway C Henderson 16,750 SF 0% Southern Nevada s medical office market followed up a strong 2017 with a solid first quarter in 2018. Medical Office Investment Sales 2014 2015 2016 2017 2018 YTD No. Sales 13 8 9 21 3 Square Footage 533,835 196,824 305,790 516,655 150,668 Sales Volume $117.1 MM $41.3 MM $36.6 MM $115.4 MM $49.2 MM Average Price/SF $219.38 $209.92 $126.14 $223.29 $326.51 Average Cap Rate 7.5% 7.7% 6.8% 7.0% n/a Average Sale Size (SF) 41,100 24,600 34,000 24,600 50,200 *Using the Consumer Price Index, All Urban Consumers, West Region, Class A Cities, 1982-1984 = 100 34 Las Vegas Research & Forecast Report Q1 2018 Medical Office Colliers International

215 NORTH LAS VEGAS Significant Medical Office Sales Activity Parkway Medical Plaza NORTHWEST 95 15 81,834 SF - $31,750,000 $388.00/SF February 2018 Class A Tenaya Medical Building SUMMERLIN WEST CENTRAL DOWN TOWN EAST LAS VEGAS 68,066 SF - $17,100,000 $251.00/SF February 2018 Class B Charleston Professional Center 45,450 SF - $13,507,000 95 $297.00/SF October 2017 Class B AIRPORT St Rose Dominican Medical Plaza 215 41,676 SF - $2,800,000 $67.00/SF October 2017 SOUTHWEST HENDERSON Class B San Martin Medical Campus 10,510 SF - $1,837,500 $174.00/SF February 2018 Class C Significant Lease Activity Property Name Lease Date Lease Term Size Lease Rate Tenant Type 600 South Rancho Dec 2017 36 months 6,186 SF $1.05 NNN Church Parkway Medical Plaza Jan 2018 66 months 3,257 SF $2.07 NNN Consultants Del E Webb Medical Center Nov 2017 60 months 3,003 SF $1.67 NNN Physicians 1815 East Lake Mead Jan 2018 58 months 2,703 SF $2.23 FSG Physical Therapy 1815 East Lake Mead Feb 2018 84 months 1,615 SF $2.19 FSG Physicians 35 Las Vegas Research & Forecast Report Q1 2018 Medical Office Colliers International

Market Comparisons - Las Vegas Medical Office Market CLASS TOTAL INVENTORY SF DIRECT VACANT SF DIRECT VACANCY RATE SUBLEASE VACANT SF TOTAL VACANT SF VACANCY RATE CURRENT QUARTER VACANCY RATE PRIOR QUARTER NET ABSORPTION CURRENT QTR SF NET ABSORPTION YTD SF COMPLETIONS CURRENT QTR SF COMPLETIONS YTD SF UNDER CONSTRUCTION SF PLANNED CONSTRUCTION SF WEIGHTED AVG ASKING RENTAL RATE AIRPORT SUBMARKET A - - n/a - - n/a n/a - - - - - - $- B - - n/a - - n/a n/a - - - - - - $- C 38,000 7,690 20.2% - 7,690 20.2% 20.2% - - - - - - $1.92 Total 38,000 7,690 20.2% - 7,690 20.2% 20.2% - - - - - - $1.92 DOWNTOWN SUBMARKET A 65,000-0.0% - - 0.0% 0.0% - - - - - - $- B 228,761 32,156 14.1% - 32,156 14.1% 14.1% - - - - - - $1.94 C 86,997-0.0% - - 0.0% 0.0% - - - - - - $- Total 380,758 32,156 8.4% - 32,156 8.4% 8.4% - - - - - - $1.94 EAST LAS VEGAS SUBMARKET A - - n/a - - n/a n/a - - - - - - $- B 708,064 156,782 22.1% 5,060 161,842 22.9% 24.8% 13,788 13,788 - - - - $2.06 C 626,007 32,865 5.2% - 32,865 5.2% 4.7% (3,379) (3,379) - - - - $1.16 Total 1,334,071 189,647 14.2% 5,060 194,707 14.6% 15.4% 10,409 10,409 - - - - $1.90 HENDERSON SUBMARKET A 501,834 61,793 12.3% - 61,793 12.3% 12.5% 1,143 1,143 - - - - $3.02 B 361,179 99,084 27.4% 2,369 101,453 28.1% 27.7% 955 955 - - - - $1.97 C 608,210 52,259 8.6% - 52,259 8.6% 8.0% -3,397 (3,397) - - - 16,750 $2.11 Total 1,471,223 213,136 14.5% 2,369 215,505 14.6% 14.4% (1,299) (1,299) - - - 16,750 $2.31 NORTH LAS VEGAS SUBMARKET A - - n/a - - n/a n/a - - - - - - $- B 98,011 22,128 22.6% - 22,128 22.6% 25.3% 2,639 2,639 - - - - $2.13 C 180,026 17,900 9.9% - 17,900 9.9% 9.9% - - - - - 107,000 $2.00 Total 278,037 40,028 14.4% - 40,028 14.4% 15.3% 2,639 2,639 - - - 107,000 $2.07 NORTHWEST SUBMARKET A 888,183 106,477 12.0% 6,816 113,293 12.8% 13.2% 3,658 3,658 - - - - $2.67 B 1,068,389 85,667 8.0% - 85,667 8.0% 8.0% 55,693 55,693 60,500 60,500 - - $2.44 C 202,434 1,977 1.0% - 1,977 1.0% 4.0% 6,021 6,021 - - - - $1.95 Total 2,159,006 194,121 9.0% 6,816 200,937 9.3% 9.8% 65,372 65,372 60,500 60,500 - - $2.56 SOUTHWEST SUBMARKET A 115,300 37,447 32.5% - 37,447 32.5% 26.7% (6,606) (6,606) - - - 45,000 $2.54 B 509,445 151,264 29.7% 4,440 155,704 30.6% 30.9% 1,893 1,893 - - 43,777 43,777 $2.34 C 281,220 32,748 11.6% - 32,748 11.6% 16.7% 14,325 14,325 - - - - $2.00 Total 905,965 221,459 24.4% 4,440 225,899 24.9% 26.0% 9,612 9,612 - - 43,777 88,777 $2.32 WEST CENTRAL SUBMARKET A - - n/a - - n/a n/a - - - - - - $- B 327,699 13,549 4.1% - 13,549 4.1% 9.0% 16,067 16,067 - - - - $2.41 C 872,926 133,223 15.3% - 133,223 15.3% 15.9% 5,428 5,428 - - - - $1.85 Total 1,200,625 146,772 12.2% - 146,772 12.2% 14.0% 21,495 21,495 - - - - $1.90 MARKET TOTAL A 1,570,317 205,717 13.1% 6,816 212,533 13.5% 13.4% (1,805) (1,805) - - - 45,000 $2.75 B 3,301,548 560,630 17.0% 11,869 572,499 17.3% 18.5% 91,035 91,035 60,500 60,500 43,777 43,777 $2.18 C 2,895,820 278,662 9.6% - 278,662 9.6% 10.3% 18,998 18,998 - - - 123,750 $1.85 Total 7,767,685 1,045,009 13.5% 18,685 1,063,694 13.7% 14.4% 108,228 108,228 60,500 60,500 43,777 212,527 $2.20 QUARTERLY COMPARISON AND TOTALS Q1-18 7,767,685 1,045,009 13.5% 18,685 1,063,694 13.7% 14.4% 108,228 108,228 60,500 60,500 43,777 212,527 $2.20 Q4-17 7,707,185 1,092,737 14.2% 16,316 1,109,053 14.4% 15.2% 61,903 210,527-391,788 43,777 210,527 $2.19 Q3-17 7,707,185 1,154,640 15.0% 16,316 1,170,956 15.2% 16.4% 149,492 384,783 73,344 391,788-254,304 $2.24 Q2-17 7,633,841 1,230,788 16.1% 20,274 1,251,062 16.4% 16.6% 208,252 235,291 232,394 318,444 73,344 547,100 $2.22 Q1-17 7,401,447 1,206,646 16.3% 20,562 1,227,208 16.6% 16.0% 27,039 27,039 86,050 86,050 107,251 238,000 $2.19 36 Las Vegas Research & Forecast Report Q1 2018 Medical Office Colliers International

Research & Forecast Report LAS VEGAS HOTEL Q1 2018 All Quiet on the Las Vegas Strip > > Southern Nevada had one major property, the SLS, sell in the first quarter of 2018 > > Visitor volume decreased in 2017 and appears to be continuing a downward trend in January 2018 > > Room inventory growth should begin in earnest in 2019 Southern Nevada s hospitality sector has struggled over the past year with decreasing visitor volume and in recent months with decreasing gaming revenue. Despite these problems, sales of hospitality properties has rebounded since the second and third quarters of 2017, with four major properties sold during the fourth quarter of 2017 and first quarter of 2018. Visitor volume in 2017 was 42.2 million visitors, less than the 43.2 million visitors to Las Vegas in 2016. While the October mass shooting in Las Vegas may have exacerbated this trend, it did not cause it. During 2017 there were only two months, March and May, in which visitor volume increased over the previous year. So far in January 2018, visitor volume is down by 3.3 percent compared to January 2017. Revenue Per Available Room (RevPAR) $130.00 $125.00 $120.00 $115.00 $110.00 $105.00 RevPAR Economic Indicators AIR Passengers +2.7% Market Indicators Relative to prior period Q1 2018 Q2 2018* Room Inventory Room Occupancy Average Daily Rate Revenue Per Available Room *Projected Summary Statistics CONVENTION Attendance -16.7 RevPAR +6.7% Jan 2018 Las Vegas Market Q1-17 Q4-17 Q1-18 Room Inventory 148,092 146,599 146,715 Room Occupancy 88.4% 84.0% 83.8% Average Daily Rate $139.30 $125.11 $163.90 Revenue Per Available Room $123.42 $105.53 $137.35 $100.00 1 Q 2016 2 Q 2016 3 Q 2016 4 Q 2016 1 Q 2017 2 Q 2017 3 Q 2017 4 Q 2017

Gaming revenue in Clark County was stronger in 2017 than 2016, with $9.98 billion in gaming revenue last year compared to $9.71 billion in 2016. January 2018 gaming revenue was down by 3.7 percent compared to January 2017. The average daily room rate (ADR) in January 2018 was up 9.1 percent compared to January 2017, while revenue per available room (RevPAR) was up 6.7 percent over the same period. Gaming revenue in Clark County in January 2018 was down 3.7 percent compared to January 2017. Las Vegas Strip gaming revenue was down 8.9 percent year-over-year, while Downtown gaming revenue increased by 1.8 percent and gaming revenue on the Boulder Strip, which mostly plays host to local casino patrons, increased by 6.8 percent. The take-away here is that locals appear to be spending more money on gaming, hence the improvement on the Boulder Strip, while tourists are spending less, hence the decrease on the Las Vegas Strip. Downtown attracts a combination of tourists and locals, and thus saw gaming revenue growth somewhere between the other two segments of the market. Sales Volume Sales vs. Price Per Unit Room inventory increased slightly in the first quarter of 2018 with the completion of the 172-room Hilton Garden Inn. Construction on the Resorts World Las Vegas projects has heated up this quarter. It has been confirmed that Wynn Resort s 1,000-room Paradise Park project will be constructed on the former site of the Desert Inn Golf Course. Wynn also announced the development of Wynn West, a 2,500 unit casino resort located on the site of demolished New Frontier across from their existing Wynn and Encore properties. The recently purchased Fontainebleau Resort, on which construction halted during the Great Recession, has been relaunched as The Drew Las Vegas, with permits pulled to renew construction on its 3,889 rooms. The Edge, an extreme sports resort is also proposed for the south Strip area. Several limited Market Health Data Point 2014 2015 2016 2017 2018* Visitor Volume (millions)* 3.39 3.39 3.47 3.51 3.39 Room Occupancy* 83.5% 81.7% 84.7% 85.7% 83.8% ADR* $118.20 $136.02 $144.88 $150.21 $163.90 RevPAR* $98.70 $111.13 $122.71 $128.73 $137.35 Convention Attendance (millions)* 0.63 0.68 0.77 0.74 0.61 Passengers McCarran Int l (millions)* 3.29 3.30 3.55 3.68 3.78 Gaming Revenue (Clark County; millions)* $777.2 $838.2 $810.5 $926.2 $892.1 Gaming Revenue ( Strip ; millions)* $499.8 $576.8 $532.3 $608.9 $554.8 Data from Las Vegas Convention & Visitors Authority * Data is January YTD 38 Las Vegas Research & Forecast Report Q1 2018 Hospitality Colliers International

service hotels are now under construction or planned to begin construction in the Valley, including Holiday Home, Homewood Suites, TownePlace Suites, Home2Suites and a Starwood hotel near the Las Vegas Speedway. Aside from new property development, Southern Nevada is slated for $1.4 billion in property remodels and renovations over the next two years, including Park MGM, a rebrand and remodel of the Monte Carlo Resort & Casino and Palace Station Hotel & Casino. Conference center and convention center construction and expansions total almost $2 billion and include the expansion of the Las Vegas Convention Center, the new Caesars Forum convention center and the expansion of the MGM Grand conference center. Non-gaming developments slated for the Valley over the next three years include Area 15, a 146,000 square foot recreation attraction, Las Vegas Ballpark in Summerlin, Las Vegas Stadium, which will host the NFL Las Vegas Raiders, the All Net Resort & Arena, which will host the WNBA Las Vegas Aces, Madison Square Garden s Sphere Arena and an expansion of the Showcase Mall on the Las Vegas Strip. Hospitality sales were down in 2017 compared to 2016 in terms of sale volume, but up in terms of rooms sold. The first quarter of 2018 will see the closing of the Meruelo Group s purchase of the SLS hotel casino, though as yet the consideration for that property is unknown. Hospitality Sales* Year Sales Volume Units Sold Price/Unit 2018 n/a 1,325 n/a 2017 $917.4 MM 6,626 $138,000 2016 $1221.8 MM 4,776 $254,000 2015 $466.2 MM 5,445 $86,000 2014 $2001.3 MM 7,614 $263,000 2013 $57.8 MM 1,335 $43,000 2012 $159.8 MM 3,120 $51,000 2011 $1577.8 MM 7,507 $210,000 * Only includes properties with 100 or more units, arm s-length sales 39 Las Vegas Research & Forecast Report Q1 2018 Hospitality Colliers International

Significant Hotel Sale Activity NORTHWEST 215 NORTH LAS VEGAS Aliante Hotel and Casino Casino Hotel - $380,000,000 202 Units - $1,881,000/Unit 95 September 2016 Casino Hotel - North Vegas 15 Stratosphere Las Vegas Casino Hotel - $421,000,000 2,427 Units - $174,000/Unit October 2017 SUMMERLIN WEST CENTRAL DOWNTOWN RESORT CORRIDOR EAST LAS VEGAS Casino Hotel - Strip Fontainebleau Resort Casino Hotel - $600,000,000 THE STRIP 95 3,889 Units - $154,000/Unit August 2017 Casino Hotel - Strip 215 AIRPORT Tropicana Las Vegas Casino Hotel - $360,000,000 SOUTHWEST SOUTH LAS VEGAS HENDERSON 1,497 Units - $240,000/Unit December 2015 Casino Hotel - Strip Palms Casino Resort Casino Hotel - $315,500,000 711 Units - $440,000/Unit October 2016 Casino Hotel - Resort Corridor Sale Activity Continued Property Name Sale Date Units Price Price/Unit Submarket Property Type Eastside Cannery Dec 2016 307 $139,000,000 $453,000 East Vegas Casino Hotel Cannery Hotel & Casino Dec 2016 201 $91,000,000 $453,000 North Vegas Casino Hotel Arizona Charlie s Casino Oct 2017 303 $53,000,000 $174,000 East Vegas Casino Hotel Marriott Springhill Jul 2017 299 $50,500,000 $169,000 Resort Corridor Full Service Arizona Charlie s Decatur Oct 2017 259 $45,000,000 $174,000 West Vegas Casino Hotel 40 Las Vegas Research & Forecast Report Q1 2018 Hospitality Colliers International

Market Comparisons - Las Vegas Hospitality Market TYPE TOTAL INVENTORY (UNITS) TOTAL SALES (UNITS) TOTAL SALES VOLUME AVERAGE SALES PRICE PER UNIT COMPLETIONS CURRENT QUARTER (UNITS) COMPLETIONS YTD (UNITS) FUTURE DEVELOPMENT (UNITS) DOWNTOWN CAS 7,428 - $0 n/a - - - FS - - $0 n/a - - - LS 204 - $0 n/a - - - Total 7,632 - $0 n/a - - - LAS VEGAS STRIP CAS 80,185 1,325 n/a n/a - - 11,389 FS 5,450 - $0 n/a - - - LS 2,224 - $0 n/a - - - Total 87,859 1,325 $0 n/a - - 11,389 RESORT CORRIDOR CAS 10,610 - $0 n/a - - - FS 4,830 - $0 n/a - - - LS 5,939 - $0 n/a - - - Total 21,379 - $0 n/a - - - AIRPORT CAS - - $0 n/a - - 640 FS - - $0 n/a - - - LS 1,175 - $0 n/a - - - Total 1,175 - $0 n/a - - 640 EAST LAS VEGAS SUBMARKET CAS 1,704 - $0 n/a - - - FS - - $0 n/a - - - LS 3,058 - $0 n/a - - - Total 4,762 - $0 n/a - - - HENDERSON SUBMARKET CAS 2,035 - $0 n/a - - - FS 732 - $0 n/a - - - LS 1,465 - $0 n/a - - - Total 4,232 - $0 n/a - - - NORTH LAS VEGAS SUBMARKET CAS 988 - $0 n/a - - - FS - - $0 n/a - - - LS 1,280 - $0 n/a - - 125 Total 2,268 - $0 n/a - - 125 SOUTH LAS VEGAS SUBMARKET CAS 2,463 - $0 n/a - - - FS - - $0 n/a - - 211 LS 1,404 - $0 n/a - - - Total 3,867 - $0 n/a - - 211 SUMMERLIN SUBMARKET CAS 1,770 - $0 n/a - - - FS 123 - $0 n/a - - - LS 515 - $0 n/a - - - Total 2,408 - $0 n/a - - - WEST CENTRAL SUBMARKET CAS 3,425 - $0 n/a - - - FS 118 - $0 n/a - - - LS 2,900 - $0 n/a 172 172 405 Total 6,443 - $0 n/a 172 172 405 MARKET TOTAL CAS 110,608 1,325 n/a n/a - - 12,029 FS 11,253 - $0 n/a - - 211 LS 20,164 - $0 n/a 172 172 530 Total 142,025 1,325 n/a n/a 172 172 12,770 QUARTERLY COMPARISON AND TOTALS Q1-18 142,025 1,325 n/a n/a 172 172 12,770 Q4-17 141,853 2,989 $518,923,611 $173,611 229 449 10,439 Q3-17 141,624 746 $90,174,194 $120,877 0 220 10,105 Q2-17 141,624 194 $14,225,000 $73,325 169 220 5,670 Q1-17 141,853 2,697 $294,035,872 $109,023 51 51 5,670 41 Las Vegas Research & Forecast Report Q1 2018 Hospitality Colliers International

Research & Forecast Report LAS VEGAS LAND Q1 2018 Land Sales Begin to Rebound > > The first quarter of 2018 was the best quarter for land sales in two years > > Commercial land sales led the pack in terms of acres sold > > Industrial and residential sales also rebounded from last quarter Southern Nevada s land market saw 78 sales in the first quarter of 2018, roughly equal to the number of land sales one quarter ago, and more than were recorded one year ago. A total of 1,450 acres were sold in the first quarter with a sales volume of $199.1 million and an average price per square foot of $3.15. Sales volume this quarter was higher than one quarter ago, and higher than one year ago. This quarter saw a major boost from commercial land sales in the Henderson submarket and residential sales in the North Las Vegas submarket. Occupancy in industrial buildings decreased to 94.5 percent in the first quarter of 2018 as demand for industrial space weakened while industrial development increased. A total of 2.4 million square feet of industrial space was completed on 196 acres in the first quarter of 2018. An additional 10.9 million square feet of industrial space is either under construction or planned on 1,000 acres of land. In the first quarter of 2018, 181.8 acres of industrial land was sold with total sales volume of $43.5 million. The average sales price of industrial land was $5.49 psf, a decrease of $3.00 psf from the first quarter of 2017. Occupancy in commercial buildings increased to 88.7 percent, 0.1 point higher than in the fourth quarter of 2017. While the retail market continued to struggle with vacancies in large anchor spaces, the professional and medical office markets saw solid demand and continued to see their stock of vacant space decrease. A total of 194,451 square feet of new commercial space was completed on 43 acres in the first quarter of 2018. An additional 4.1 million square feet of commercial product is currently under construction or planned on 761 acres. Average hotel Economic Indicators Market Indicators Relative to prior period Q1 2018 Q2 2018* NO. SALES ACREAGE SOLD SALES VOLUME PRICE PER SQUARE FOOT *Projected Land Sales Activity 2,000 1,800 1,600 1,400 1,200 1,000 COMMERCIAL Forward Supply 800 600 400 200-6.8 Percent RESIDENTIAL Permits +55.4 Percent Land Sales Activity INDUSTRIAL Forward Supply +11.7 Percent $12.00 $11.00 $10.00 $9.00 $8.00 $7.00 $6.00 $5.00 $4.00 $3.00 0 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 $2.00 Acres Sold Price Per Square Foot