Las Vegas Economic Review. Las Vegas Research & Forecast Report Q4 2017

Las Vegas Research & Forecast Report Q4 2017 Las Vegas Economic Review 1 Las Vegas Research & Forecast Report Q4 2017 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 Q4 2017 Economic Review Colliers International

Table of Contents Economic Review Nice Economy Kid, But Don t Get Cocky Southern Nevada s economy continued to expand in the fourth quarter of 2017. Taxable sales and employment continued to increase in the Valley, though visitor volume retreated slightly from 2016 levels. Southern Nevada is now poised to add two professional sports franchises in addition to the NHL Vegas Golden Knights, those being the NFL Las Vegas Raiders and the WNBA Las Vegas Aces. The city will also see a major expansion of its convention center and three potential new hospitality venues on the Strip in the coming years. Industrial Review A Fine Year for Industrial In our first quarter report of 2017, we were facing a potential 6.8 million square foot expansion of the industrial inventory, and worried that this rapid expansion could lead to much higher vacancy rates. Office Review Office Phase II Net absorption in Southern Nevada s office market topped 1.0 million square feet in 2017, a distinct improvement over 2016 and roughly equal to net absorption in 2015. Retail Review Last Second Save Southern Nevada s retail market was heading for a lackluster year in 2017 until the fourth quarter. 4 8 14 20 Multifamily Multifamily Stumbles According to statistics provided by REIS, multifamily vacancy in Southern Nevada increased by 0.2 points in the third quarter of 2017 (the most recent quarter of available data) to 3.2 percent. Medical Office A Banner Year for Medical Office Southern Nevada s medical office market experienced a banner year in 2017, posting the highest level of net absorption experienced by the market in five years, as well as the first significant expansion of inventory in five years. Hospitality Aftermath The trend of decreasing hospitality sales continued into the fourth quarter of 2017, with no sales occurring in the final quarter of the year. Land Soft Land Market in 2017 Southern Nevada s land market saw 267 sales in 2017, the fewest since 2012. 27 32 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 Q4 2017 Economic Review Colliers International

Research & Forecast Report LAS VEGAS ECONOMIC REVIEW Q4 2017 Nice Economy Kid, But Don t Get Cocky Southern Nevada s economy continued to expand in the fourth quarter of 2017. Taxable sales and employment continued to increase in the Valley, though visitor volume retreated slightly from 2016 levels. Southern Nevada is now poised to add two professional sports franchises in addition to the NHL Vegas Golden Knights, those being the NFL Las Vegas Raiders and the WNBA Las Vegas Aces. The city will also see a major expansion of its convention center and three potential new hospitality venues on the Strip in the coming years. Unemployment in the Las Vegas-Paradise MSA stood at 5.1 percent as of October 2017, down from 5.5 percent in October 2016. The national unemployment figure was 4.1 percent in October 2017, down from 4.9 percent in October 2016. Southern Nevada still has a ways to go to catch up to the national economy in terms of unemployment, but it has made incredible strides from the high of 14.0 percent unemployment Recovery Index (Year-Over-Year) Clark County Economic Data Year Ago Current 964.8 989.1 Visitor Volume YTD (Oct 2017) 36.5 MM 35.8 MM Gaming Revenue YTD (Oct 2017) $8.1 BB $8.4 BB $29.5 BB $30.7 BB 91.3% 92.2% Jobs (1000s) (Oct 2017) Taxable Sales YTD (Sep 2017) Commercial Occupancy (Q4-17) Source: The Center for Business & Economic Research, UNLV; Colliers International

experienced in 2010. The national labor force participation rate decreased slightly to 62.7 percent in October 2017, 0.1 point lower than in October 2016. Employment Change (October 2016 - October 2017) Since October 2016, total employment in Southern Nevada increased by 24,300 jobs, fewer than the 29,800 jobs that were added between October 2015 and October 2016. On a year-over-year basis, the majority of new jobs created in Southern Nevada were in construction (+10,500 jobs), professional and business services (+6,100 jobs), leisure and hospitality (+5,600 jobs), education and health services (+2,800 jobs), and other services (+1,100 jobs). Other sectors experiencing job growth were financial activities (+900 jobs), manufacturing (+700 jobs) and government (+300 jobs). Four sectors saw job losses over the period, wholesale (-900 jobs), retail (-1,000 jobs), transportation and warehousing (-1,700 jobs) and information (-100 jobs). While the current construction employment of 68,200 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. Southern Nevada Commercial Real Estate Recovery Index Population growth, a key driver of Southern Nevada s economy for the past century, may be improving. According to data provided by the Nevada Department of Motor Vehicles, the average number of out-ofstate driver s licenses turned in each month was 5,130 in 2015. 2016 saw that average improve to 5,773 per month, higher than the last peak of 5,481 per month experienced in 2013. The average so far in 2017 is lower, standing at 5,468 per month from January to June, nearly the number recorded last year. Electric meter hookups saw 2.0 percent year-over-year growth in October of 2017. New home sales continued to improve in 2017 over recent years. Sales in 2017 averaged 738 homes per month from January to October. Home sales averaged 633 homes per month over the same period in 2016. The median price for new homes increased, year-over-year, by approximately 5.9 percent in 2017, compared to 3.7 percent in 2016. In the first half of 2017, median home price increases seemed to moderate, but the second half of the year has seen stronger gains. In October 2017, the median price of a new home in Southern Nevada was $356,400, a 6.4 percent increase over October 2016. The gap between the median prices for a new vs. existing home decreased between 2012 and 2016, but has been on the rise in 2017. Existing homes cost about 74.4 percent as much as new homes in 2017. Visitor volume hit a new record in 2016, but volume in 2017 did not kept pace. The October Mandalay Bay attack might exacerbate this trend, but as November numbers have not yet been released by the LVCVA, we do not know for sure what to expect. Visitor volume in the first ten months of 2017 was 35.8 million visitors, compared to 36.5 million in the first ten months of 2016. Gaming revenue is higher in 2017 than 2016 so far. In the first ten months of 2017, Clark County gaming revenue stood at $8.4 billion, compared to $8.1 billion in the same period in 2016. 5 Las Vegas Research & Forecast Report Q4 2017 Economic Review Colliers International

Commercial real estate (i.e. industrial, office and retail) investment sales volume in 2017 reached $1.8 billion in 256 sales totaling 11.7 million square feet at an average price per square foot of $155.00. This makes 2017 the biggest year for investment sales in a decade in terms of sales volume, followed by 2014 s 1.4 billion in sales volume. Investment sales in 2017 seemed to swing towards office properties, despite office properties having a higher vacancy rate than other property types. These sales were not predicated on depressed prices, as the average investment sales price for office properties was $187.23 per square foot, a 35 percent increase from 2016. Investment sales volume growth in 2017 was 226.8 percent for office properties, 132.9 percent for medical office properties, 65.8 percent for shopping centers, 0.2 percent for industrial properties and negative 13.9 percent for single-tenant retail properties in 2017. The Southern Nevada recovery index was generally positive in 2017, increasing from 109.8 in October 2016 to 111.4 in October 2017. The road was rocky in 2017, though, with the index ranging between a low of 110.2 in March and a high of 111.9 in September. The greatest improvement over the past twelve months was in gaming revenue (+3.8), followed by employment (+3.5) and taxable sales (+3.5). Only visitor volume saw a decrease over the past twelve months, of 5.3 points. Southern Nevada s economy continued to grow in 2017, and this year seemed to mark a transition between recovery from the Great Recession of a decade ago, and expansion into the future. That being said, decreases in visitor volume, notably recorded before the October Mandalay Bay attack, should cause some concern. The hospitality industry remains the cornerstone of the local economy, and trouble there would mean trouble in the broader economy. We think the economy will continue to grow moderately in 2018, but realize there are pitfalls to watch for. It s a good economy kid, but don t get cocky. 6 Las Vegas Research & Forecast Report Q4 2017 Economic Review Colliers International

Economic Statistics Las Vegas Fourth Quarter 2017 TYPE OCTOBER-17 JULY-17 OCTOBER-16 2017 AVERAGE 2016 AVERAGE QUARTERLY GROWTH ANNUAL GROWTH 2016 TO 2017 GROWTH (AVERAGE) EMPLOYMENT DATA U.S. Employment 147,010,000 146,615,000 144,950,000 146,285,800 144,324,333 0.3% 1.4% 1.4% U.S. Unemployment Rate 4.1% 4.3% 4.9% 4.4% 4.9% -4.7% -16.3% -9.4% Las Vegas MSA Employment Las Vegas MSA Unemployment Rate Las Vegas MSA Construction Employment Las Vegas MSA Hospitality Employment 989,100 974,300 964,800 974,190 949,175 1.5% 2.5% 2.6% 5.1% 5.1% 5.5% 5.1% 6.0% 0.0% -7.3% -15.0% 68,200 64,700 57,700 62,670 55,317 5.4% 18.2% 13.3% 290,900 291,700 285,300 290,660 286,142-0.3% 2.0% 1.6% HOUSING/CONSTRUCTION DATA New Home Sales 746 681 631 738 663 9.5% 18.2% 11.4% New Home Median Price $356,400 $336,351 $335,000 $342,896 $322,633 6.0% 6.4% 6.3% Existing Home Sales 2,970 3,142 2,621 2,987 2,695-5.5% 13.3% 10.8% Existing Home Median Price $263,000 $260,000 $232,000 $252,437 $229,642 1.2% 13.4% 9.9% Residential Permits 712 1,399 729 1,122 1,146-49.1% -2.3% -2.1% Case-Shiller Housing Price Index (LV) Mortgage Rate (Fixed, 30-year) 165.4 161.4 151.7 160.4 150.5 2.5% 9.0% 6.5% 3.98% 3.96% 3.47% 4.07% 3.73% 0.5% 14.7% 8.9% Construction Employment 68,200 64,700 57,700 62,670 55,317 5.4% 18.2% 13.3% HOSPITALITY DATA Visitor Volume 3,604,306 3,788,755 3,762,420 3,579,375 3,602,703-4.9% -4.2% -0.6% Gaming Revenue $854,292,000 $848,564,000 $856,941,000 $837,377,400 $809,399,667 0.7% -0.3% 3.5% Room Inventory 148,532 148,433 149,273 148,921 149,285 0.1% -0.5% -0.2% Hotel/Motel Occupancy 90.0% 94.5% 92.7% 89.2% 89.1% -4.8% -2.9% 0.1% Passengers (McCarran Int'l Airport) 4,339,416 4,325,676 4,277,985 4,075,817 3,952,970 0.3% 1.4% 3.1% Convention Attendance 687,209 507,011 505,603 582,646 525,885 35.5% 35.9% 10.8% 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 Q4 2017 Economic Review Colliers International

Research & Forecast Report LAS VEGAS INDUSTRIAL Q4 2017 A Fine Year for Industrial > > Net absorption in 2017 was the highest annual net absorption in twenty years > > This decreased vacancy to a very low 4.3 percent > > The overall weighted average asking rate remained stable at $0.68 psf NNN In our first quarter report of 2017, we were facing a potential 6.8 million square foot expansion of the industrial inventory, and worried that this rapid expansion could lead to much higher vacancy rates. At year s end 2017, we find that industrial inventory expanded by 6.3 million square feet, and strong demand for industrial space sent vacancy rates down to a very healthy 4.3 percent. All in all, an excellent year for Southern Nevada s industrial market. The overall weighted average asking rate remained at $0.68 per square foot (psf) on a triple net (NNN) basis at the end of 2017, just as it was one year ago. Construction employment still dominates the industrial jobs market in Southern Nevada. The construction sector added 10,500 jobs between October 2016 and October 2017. Manufacturing also showed positive job growth of 700 jobs, while the wholesale and transportation & warehousing sectors continued to show yearover-year job losses of 1,700 jobs and 900 jobs respectively. Economic Indicators INDUSTRIAL Employment +4.0% Market Indicators Relative to prior period Q4 2017 Q1 2018* Vacancy Net Absorption Completions Rental Rate *Projected Summary Statistics RESIDENTIAL Permits -2.3% TRANSPORTATION Taxable Sales -6.3 Las Vegas Market Q4-16 Q3-17 Q4-17 Vacancy Rate 5.4% 5.0% 4.3% Historical Vacancy Rates and Asking Lease Rates 6.0% 5.5% 5.0% 4.5% 4.0% $0.70 $0.68 $0.66 $0.64 $0.62 Asking Rent (PSF, NNN) $0.67 $0.68 $0.68 Net Absorption (SF) 804,521 1,694,829 2,209,808 New Completions (SF) 962,700 1,413,231 1,468,774 Overall Asking Rents Per Square Foot 3.5% $0.60 Warehouse/Distribution $0.54 $0.54 $0.55 3.0% 1 Q 2016 2 Q 2016 Vacancy 3 Q 2016 4 Q 2016 1 Q 2017 2 Q 2017 3 Q 2017 Asking Rental Rate 4 Q 2017 $0.58 Light Distribution $0.64 $0.73 $0.67 Light Industrial $0.73 $0.76 $0.75 Incubator $0.84 $0.83 $0.86 Flex $0.85 $0.93 $0.87 Given current performance, we think 2018 will follow 2017 s path as long as the national (and to a lesser extent, global) economics remain positive.

These job losses are somewhat puzzling, given the continued robust demand for the industrial product that is usually filled by businesses in these sectors. Unemployment in the Las Vegas-Paradise MSA stood at 5.1 percent in October 2017, down from 5.5 percent in October 2016. From October 2016 to October 2017, total employment in Southern Nevada increased by 41,600 jobs, a 4.4 percent increase. Historical Net Absorption vs. Completions 8,000,000 6,000,000 4,000,000 Southern Nevada s industrial inventory expanded by 1.5 million square feet in the fourth quarter of 2017, bringing year-end completions up to 6.3 million square feet. An additional 4 to 9 million square feet of industrial space is slated for completion in 2018; expansion will likely be in the neighborhood of 6.5 million square feet. Projects that should be completed in the first quarter of 2018 are only 28 percent pre-leased or build-to-suit. 2,000,000 0-2,000,000-4,000,000 2009 2010 2011 2012 2013 2014 2015 2016 2017 Net Absorption Completions End of year net absorption for 2017 was 7.4 million square feet, well outpacing the 5.8 million square feet of net absorption recorded in 2016. Only the Northwest submarket had negative net absorption (negative 2,335 square feet) in 2017. Net absorption was highest this year in North Las Vegas, at 5.2 million square feet, followed distantly by the Southwest (656,321 square feet) and Henderson (620,687 square feet) submarkets. Net absorption in properties completed in 2017 totaled roughly 5.6 million square feet, which represented 77 percent of the total net absorption for the market. Occupancy vs. Industrial Employment 167,500 165,000 162,500 160,000 96.0% 95.5% 95.0% 94.5% Gross absorption was 15.2 million square feet in 2017, significantly higher than the gross absorption of 10.5 million square feet recorded in 2016, and no doubt due to the addition of new, desirable industrial product to the available inventory this year. Vacancy decreased to 4.3 percent at the end of 2017, 1.0 point lower than at the end of 2016. Decreasing vacancy is always welcome news, but in the face of such significant inventory expansion it is particularly impressive. The Valley s lowest vacancy rate was in the East Las Vegas submarket (2.3 percent) followed by West Central (3 percent) and Henderson (4 percent). The Valley s highest vacancy rate was in the Northwest submarket at 7.1 percent. The industries most active in occupying industrial space in 2017 were involved in the wholesale, transportation & warehousing, manufacturing and retail sectors. You will note that above we mentioned that, year-over-year, the wholesale and transportation & warehousing sectors lost jobs, and yet showed strong expansion in the Valley. This might be an artifact of how the employment numbers collected, in as much as they do not initially take into account jobs in new businesses. Local companies took about 37 percent of the leased 157,500 155,000 152,500 150,000 1 Q 2016 2 Q 2016 OCT 2016 OCT 2017 CHANGE Construction 57,700 68,200 + 10,500 Manufacturing 22,300 23,000 + 700 Transportation & Warehousing 3 Q 2016 Industrial Jobs 4 Q 2016 39,200 37,500-1,700 Wholesale 21,800 20,900-900 94.0% 93.5% 93.0% 92.5% Source: Nevada Department of Employment, Training and Rehabilitation. 1 Q 2017 2 Q 2017 3 Q 2017 Occupancy Rate 4 Q 2017 9 Las Vegas Research & Forecast Report Q4 2017 Industrial Colliers International

square footage we tracked in 2017. Companies headquartered in the Midwest took 17.0 percent of the occupied space while 13.5 percent came from the Southeast states and companies headquartered in the Southwest U.S. (including California) took 13.1 percent. It is surprising to see the Midwestern and Southeastern companies expand so much more strongly in Southern Nevada than California companies. By comparison, in 2009 Midwest and Southeast companies combined for about 12.2 percent of tracked lease comps compared to 18 percent for California-based companies. At the end of 2017, the weighted average asking lease rate for industrial space was $0.68 psf NNN, the same as at the end of 2016. Industrial lease values remaining stable and strong suggests that the inventory expansion planned for 2018 is reasonable. If adjusted for inflation, the weighted average asking lease rate is $0.48 psf NNN, the same as one year ago. Units leased in 2017 had effective lease rates that averaged 106.0 percent of asking rates, a decrease from 2016 s average of 109.1 percent. This is an indication that asking rates should continue to increase in 2018. At mid-year 2017, industrial investment sales volume was $309.1 million in 63 sales totaling 3,184,000 square feet. This is comparable with sales activity in 2016. Average sales price per square foot yearto-date was $97.10, a small increase from 2016 s average of $93.48. The average cap rate was 6.9 percent, down from 7.4 percent last year. Southern Nevada s industrial market had 668,754 square feet of product marketed for sale as investments at the end of 2017, with an average asking price of $116.46 psf, and an average cap rate of 7.1 percent. The warehouse/distribution market has dominated the overall Southern Nevada industrial market for the past several years in 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 1ST QUARTER 2018 2,075,030 SF 28% Henderson Commerce Center II Bldg U Warehouse/Distribution UC Henderson 50,400 SF 0% Henderson Commerce Center II Bldg V Warehouse/Distribution UC Henderson 54,000 SF 0% Henderson Commerce Center II Bldg W Warehouse/Distribution UC Henderson 81,600 SF 0% Henderson Interchange Center Bldg 1 Warehouse/Distribution UC Henderson 130,990 SF 100% Henderson Interchange Center Bldg 2 Warehouse/Distribution UC Henderson 197,120 SF 27% Lincoln Business Center Warehouse/Distribution UC North Las Vegas 338,520 SF 100% Northgate Distribution Center Bldg 9 Warehouse/Distribution UC North Las Vegas 690,100SF 0% Roberts Communications Complex Warehouse/Distribution UC Henderson 50,000 SF BTS South15 Airport Center Warehouse/Distribution UC Henderson 482,300 SF 0% 2ND QUARTER 2018 284,900 SF 46% 1761 S Mojave Road Light Industrial UC East Las Vegas 21,800 SF 0% Prologis Las Vegas Corporate Center Bldg 9 Warehouse/Distribution UC North Las Vegas 131,350 SF 0% Prologis Las Vegas Corporate Center Bldg 14 Warehouse/Distribution UC North Las Vegas 131,750 SF 100% 3RD QUARTER 2018 980,770 SF 19% 401 Eastgate Warehouse/Distribution UC Henderson 156,690 SF BTS Centra Craig Corporate Center Warehouse/Distribution PC North Las Vegas 311,580 SF 0% Craig @ Walnut Warehouse/Distribution PC North Las Vegas 122,500 SF 0% Speedway Commerce Center West A Warehouse/Distribution UC North Las Vegas 390,000 SF 0% 2018/2019 5,158,530 SF 11% 5785 N Hollywood Blvd Warehouse/Distribution PC North Las Vegas 36,000 SF BTS AirParc South Warehouse/Distribution PC Henderson 181,430 SF 0% AirParc South Light Distribution PC Henderson 30,600 SF 0% Blue Diamond Business Center Bldg 6 Warehouse/Distribution PC Southwest 322,560 SF 0% 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% Lamb Industrial Center Light Distribution PC North Las Vegas 121,890 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% South15 Airport Center Bldg C Warehouse/Distribution PC Henderson 189,000 SF 0% South15 Airport Center Bldg D Warehouse/Distribution PC Henderson 91,000 SF 0% South15 Airport Center Bldg E Warehouse/Distribution PC Henderson 200,000 SF 0% South15 Airport Center Bldg F Warehouse/Distribution PC Henderson 100,800 SF 0% South15 Industrial Park Bldg 1 Warehouse/Distribution PC Henderson 86,880 SF 0% South15 Industrial Park Bldg 2 Warehouse/Distribution PC Henderson 73,840 SF 0% Speedway Commerce Center West B Warehouse/Distribution PC North Las Vegas 332,800 SF 0% Switch SuperNAP Warehouse/Distribution PC Southwest 500,000 SF BTS Van Trust II Bldg 1 Warehouse/Distribution PC North Las Vegas 550,160 SF 0% Van Trust II Bldg 2 Warehouse/Distribution PC North Las Vegas 727,040 SF 0% 10 Las Vegas Research & Forecast Report Q4 2017 Industrial Colliers International

terms of net absorption, and 2017 was no different. The warehouse/ distribution inventory expanded by 6.1 million square feet in 2017, and posted 6.3 million square feet of net absorption. In basic terms, demand exceeded supply, decreasing the vacancy rate to a very healthy 3.8 percent. The overall asking rental rate for warehouse/ distribution properties was $0.55 psf NNN in 2017, the same as at the end of 2016. Low vacancy and stable asking rents mean that the inventory expansion is not over. Warehouse/distribution forward supply was 8.1 million square feet at the end of 2017; we think approximately 6.0 million square feet of warehouse/distribution product will be completed in 2018. The light distribution sector in Southern Nevada posted a weak fourth quarter in 2017, with only 20,992 square feet of net absorption. That being said, 324,413 square feet of net absorption for 2017 as a whole, combined with only 133,077 square feet of new construction, kept vacancy at a low 4.5 percent. Asking rates for light distribution space increased by $0.03 psf in 2017 over 2016, to $0.67 psf NNN. The light distribution market will probably not see an explosion in inventory growth in 2018, but with 186,000 square feet already under construction it will see greater expansion in 2018 than in 2017. Southern Nevada s light industrial sector also had a disappointing fourth quarter in 2017, though year-end net absorption was a strong 477,998 square feet. New completions were negligible in 2017, so the light industrial sector had the lowest vacancy rate among product types at 4.1 percent. The light industrial sector has even less new space under construction and planned than light distribution, and this lack of new product may be to blame for the negative 51,589 square feet of net absorption experienced in the fourth quarter of 2017. As the 51,215 square feet of new light industrial space is completed in 2018, we will get a clearer picture of whether light industrial is a sector in need of expansion, or a sector beginning to falter. The incubator market had net absorption of 208,831 square feet in 2017, a marked improvement over 2016. Incubator vacancy was 5.7 percent at the end of 2017, which was perhaps not low enough to boost inventory growth in 2018. In fact, there are currently no new incubator projects planned or under construction in the Valley. The flex market was the Valley s weakest in 2017, with only 51,003 square feet of net absorption and a vacancy rate of 8.8 percent. After the 2008 recession and the 2013 recovery, the 2017 expansion was a chance to see just how far Southern Nevada s economy had come. Demand had been steadily improving for three years, but could it cope with an inventory expansion the likes of which the Valley had not seen in a decade? We now know that the answer was yes! With net absorption topping new construction by over 1.0 million square feet, and vacancy dropping beneath 5.0 percent, Southern Nevada showed that flagging net absorption in 2016 was a matter of lacking the necessary supply, not a lack of demand. That leaves us looking forward to 2018, when the Valley could see as much or more new industrial space constructed. Given current performance, we think 2018 will follow 2017 s path as long as the national (and to a lesser extent, global) economics remain positive. powerful demand for industrial space sent vacancy rates down to a very strong 4.3 percent. Investment Sales 2013 2014 2015 2016 2017 No. Sales 58 100 52 70 63 Square Feet Sold 3,526,000 5,832,000 2,759,000 3,299,000 3,184,000 Sales Volume $189.1 MM $496.2 MM $248.8 MM $308.4 MM $309.1 MM Average Price/SF $53.65 $85.08 $90.20 $93.48 $97.10 Average Cap Rate 7.0% 7.3% 7.1% 7.4% 6.9% Average Sale Size (SF) 61,000 58,000 53,000 47,000 51,000 *Using the Consumer Price Index, All Urban Consumers, West Region, Class A Cities, 1982-1984 = 100 11 Las Vegas Research & Forecast Report Q4 2017 Industrial Colliers International

NORTHWEST 95 215 NORTH LAS VEGAS 15 Significant Industrial Sale Activity 3101 East Craig Road 36,200 SF - $6,306,000 $174.00/SF September 2017 Warehouse/Distribution WEST CENTRAL EAST LAS VEGAS 1840 Aerojet Way 102,948 SF - $8,460,000 $82.00/SF November 2017 Warehouse/Distribution 95 1900 Aerojet Way 105,101 SF - $7,450,000 $71.00/SF September 2017 Warehouse/Distribution SOUTHWEST 215 AIRPORT HENDERSON Hughes Cheyenne Center-985 109,585 SF - $9,125,000 $83.00/SF November 2017 Warehouse/Distribution Parc Post 53,040 SF - $6,603,000 $124.00/SF September 2017 Light Distribution Lease Activity PROPERTY NAME LEASE DATE LEASE TERM SIZE EFFECTIVE RATE TYPE Lincoln Business Center Oct 2017 87 months 338,520 SF $0.54 NNN Warehouse/Distribution Marnell Airport Center Nov 2017 89 months 74,882 SF $0.58 NNN Light Distribution Hughes Airport Center Nov 2017 38 months 11,192 SF $0.78 NNN Flex Valley View Russell Commerce Center Oct 2017 58 months 6,135 SF $0.71 NNN Incubator Arville Sunset Industrial Complex Oct 2017 24 months 5,685 SF $0.68 NNN Light Industrial 12 Las Vegas Research & Forecast Report Q4 2017 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 5,859,225 177,357 3.0% - 177,357 3.0% 3.0% (3,175) 167,765 - - - - $0.83 LD 3,387,977 215,991 6.4% 18,872 234,863 6.9% 10.8% 122,583 82,770-133,077 - - $0.78 LI 3,005,975 145,334 4.8% - 145,334 4.8% 6.3% 44,472 54,100-54,000-30,897 $0.97 INC 1,500,100 122,266 8.2% - 122,266 8.2% 8.5% 5,108 62,156 - - - - $1.21 FLX 1,509,068 153,764 10.2% - 153,764 10.2% 10.4% 3,733 39,271 - - - - $0.88 Total 15,262,345 814,712 5.3% 18,872 833,584 5.5% 6.7% 172,721 406,062-187,077-30,897 $0.91 EAST LAS VEGAS SUBMARKET WH 1,115,454-0.0% - - 0.0% 0.0% - 25,183 - - - - $- LD 532,163-0.0% 26,492 26,492 5.0% 5.0% - 75,888 - - - - $- LI 1,797,756 62,768 3.5% - 62,768 3.5% 1.7% (32,490) 24,434 - - 21,804 - $0.63 INC 280,959 21,912 7.8% - 21,912 7.8% 7.9% 178 5,252 - - - - $0.71 FLX 233,692 7,764 3.3% - 7,764 3.3% 2.8% (1,172) (664) - - - - $0.67 Total 3,960,024 92,444 2.3% 26,492 118,936 3.0% 2.2% (33,484) 130,093 - - 21,804 - $0.65 HENDERSON SUBMARKET WH 7,652,604 372,016 4.9% 27,270 399,286 5.2% 6.3% 81,963 522,909-240,000 1,017,104 922,950 $0.55 LD 1,685,746 38,296 2.3% - 38,296 2.3% 2.8% 8,433 60,474 - - 186,000 30,600 $0.57 LI 3,651,769 84,730 2.3% - 84,730 2.3% 2.6% 9,348 50,422 - - - - $0.70 INC 496,625 28,631 5.8% - 28,631 5.8% 6.3% 2,560 (5,963) - - - - $0.74 FLX 1,360,598 75,863 5.6% - 75,863 5.6% 5.9% 4,954 (7,155) - - - - $0.99 Total 14,847,342 599,536 4.0% 27,270 626,806 4.2% 4.9% 107,258 620,687-240,000 1,203,104 953,550 $0.64 NORTH LAS VEGAS SUBMARKET WH 27,703,260 1,021,435 3.7% 31,000 1,052,435 3.8% 4.7% 1,660,734 5,075,201 1,439,363 5,285,304 1,681,995 3,206,525 $0.44 LD 5,040,042 273,977 5.4% 44,545 318,522 6.3% 3.4% -125,262 59,695 - - - 122,291 $0.48 LI 9,089,334 425,801 4.7% 0 425,801 4.7% 4.5% -14,959 19,322 - - - - $0.66 INC 724,573 66,507 9.2% 0 66,507 9.2% 7.6% -11,460 46,044 - - - - $0.63 FLX 803,833 98,589 12.3% 7,500 106,089 13.2% 12.9% 3,478 (4,542) - - - - $0.81 Total 43,361,042 1,886,309 4.4% 83,045 1,969,354 4.5% 4.7% 1,512,531 5,195,720 1,439,363 5,285,304 1,681,995 3,328,816 $0.52 NORTHWEST SUBMARKET WH 224,906-0.0% - - 0.0% 0.0% - - - - - - $- LD 50,000 11,097 22.2% - 11,097 22.2% 22.2% - (11,097) - - - - $0.85 LI 341,430 19,162 5.6% - 19,162 5.6% 4.9% (2,534) (1,527) - - - - $0.74 INC 99,427 17,444 17.5% - 17,444 17.5% 17.5% - (319) - - - - $0.78 FLX 740,230 55,127 7.4% - 55,127 7.4% 8.6% 8,744 10,608 - - - - $0.90 Total 1,455,993 102,830 7.1% - 102,830 7.1% 7.5% 6,210 (2,335) - - - - $0.84 SOUTHWEST SUBMARKET WH 15,394,213 745,923 4.8% - 745,923 4.8% 7.2% 366,020 468,349-586,938-1,279,744 $0.63 LD 7,344,599 303,973 4.1% - 303,973 4.1% 4.2% (9,762) (13,084) - - - - $0.79 LI 10,536,266 467,175 4.4% - 467,175 4.4% 4.1% (11,247) 95,188 29,411 29,411 - - $0.78 INC 2,353,108 48,275 2.1% 6,352 54,627 2.3% 4.9% 60,426 88,251 - - - - $0.79 FLX 1,687,035 163,600 9.7% - 163,600 9.7% 10.7% 17,753 17,617 - - - - $0.85 Total 37,315,221 1,728,946 4.6% 6,352 1,735,298 4.7% 5.8% 423,190 656,321 29,411 616,349-1,279,744 $0.72 WEST CENTRAL SUBMARKET WH 2,253,774-0.0% - - 0.0% 0.0% - 17,283 - - - - $- LD 999,141 17,770 1.8% - 17,770 1.8% 4.3% 25,000 69,767 - - - - $0.50 LI 7,783,086 232,177 3.0% - 232,177 3.0% 3.1% (923) 249,315 - - - - $0.75 INC 2,511,825 145,243 5.8% - 145,243 5.8% 5.7% (2,695) 13,410 - - - - $0.76 FLX 161,603 15,419 9.5% - 15,419 9.5% 9.5% - (4,132) - - - - $0.81 Total 13,709,429 410,609 3.0% - 410,609 3.0% 3.2% 21,382 345,643 - - - - $0.74 MARKET TOTAL WH 60,203,436 2,316,731 3.8% 58,270 2,375,001 3.9% 5.1% 2,105,542 6,276,690 1,439,363 6,112,242 2,699,099 5,409,219 $0.55 LD 19,039,668 861,104 4.5% 89,909 951,013 5.0% 5.1% 20,992 324,413-133,077 186,000 152,891 $0.67 LI 36,205,616 1,437,147 4.0% - 1,437,147 4.0% 3.9% (8,333) 491,254 29,411 83,411 21,804 30,897 $0.75 INC 7,966,617 450,278 5.7% 6,352 456,630 5.7% 6.4% 54,117 208,831 - - - - $0.86 FLX 6,496,059 570,126 8.8% 7,500 577,626 8.9% 9.4% 37,490 51,003 - - - - $0.87 Total 129,911,396 5,635,386 4.3% 162,031 5,797,417 4.5% 5.1% 2,209,808 7,352,191 1,468,774 6,328,730 2,906,903 5,593,007 $0.68 QUARTERLY COMPARISON AND TOTALS Q4-17 129,911,396 5,635,386 4.3% 162,031 5,797,417 4.5% 5.1% 2,209,808 7,352,191 1,468,774 6,328,730 2,906,903 5,593,007 $0.68 Q3-17 128,442,622 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 Q2-17 127,029,391 6,658,018 5.2% 152,191 6,810,209 5.4% 5.7% 1,919,243 3,447,554 1,663,685 3,446,725 4,136,935 4,203,998 $0.64 Q1-17 125,365,706 6,913,576 5.5% 266,170 7,179,746 5.7% 5.7% 1,528,311 1,528,311 1,783,040 1,783,040 3,952,298 6,739,906 $0.65 Q4-16 123,582,666 6,658,847 5.4% 335,896 6,994,743 5.7% 5.6% 804,521 3,416,867 962,700 3,369,037 4,472,122 5,980,699 $0.67 Q3-16 122,619,966 6,500,668 5.3% 372,085 6,872,753 5.6% 6.0% 955,325 2,612,346 640,336 2,406,337 3,868,338 5,799,971 $0.65 Q2-16 121,979,630 6,815,657 5.6% 514,396 7,330,053 6.0% 6.0% 778,135 1,657,021 661,726 1,766,001 1,940,708 5,764,758 $0.62 WH = Warehouse LD = Light Distribution LI = Light Industrial INC = Incubator FLX = Flex 13 Las Vegas Research & Forecast Report Q4 2017 Industrial Colliers International

Research & Forecast Report LAS VEGAS OFFICE Q4 2017 Office Phase II > > 2017 continued Southern Nevada s slow-and-steady office recovery > > Vacancy fell below 16 percent in 2017, roughly double the long-term average vacancy > > Asking rates have seen little movement since hitting $2.00 psf FSG last year Net absorption in Southern Nevada s office market topped 1.0 million square feet in 2017, a distinct improvement over 2016 and roughly equal to net absorption in 2015. The office market has been in a slow recovery since 2012, and demand for office space appears to be increasing. That being said, net absorption remains lower than during the 2002 mini-recovery that followed the 2001 mini-recession, and much lower than the demand surge that took place between 2004 and 2007. Since 2012, vacancy has fallen from 21.1 percent to this quarter s 15.4 percent, while asking rates have increased from $1.87 to the current $2.04 per square foot (psf) on a Full Service Gross (FSG) basis. Southern Nevada s office job market improved in October 2017 compared with October 2016. The Valley added 8,600 jobs over the past twelve months, with the largest gain coming from the professional and business services sector (+6,100 jobs). We estimate approximately 6,780 jobs added over the past twelve months fed directly into professional office Historical Vacancy Rates and Asking Lease Rates Economic Indicators Office Employment +0.6% Market Indicators Office SF/Job -2.1% Q4 2017 Sublease Vacancy +15.7 Relative to prior period Q4 2017 Q1 2018* VACANCY NET ABSORPTION COMPLETIONS RENTAL RATE *Projected Summary Statistics Las Vegas Market Q4-16 Q3-17 Q4-17 Vacancy Rate 17.2% 15.5% 15.4% 18.5% 18.0% $2.06 $2.04 Asking Rent (PSF, NNN) $2.02 $2.01 $2.04 17.5% 17.0% $2.02 $2.00 Net Absorption (SF) 40,170 267,963 147,073 16.5% 16.0% $1.98 $1.96 New Completions (SF) 160,103 10,000 152,000 15.5% 15.0% $1.94 $1.92 Overall Asking Rents 14.5% 14.0% 4 Q 2015 1 Q 2016 2 Q 2016 3 Q 2016 4 Q 2016 1 Q 2017 2 Q 2017 3 Q 2017 4 Q 2017 $1.90 $1.88 Per Square Foot Q4-16 Q3-17 Q4-17 Class A $2.70 $2.70 $2.65 Vacancy Asking Rental Rate We think that, provided the national economy continues to improve, Southern Nevada s office market will experience a healthy 2018 Class B $2.03 $2.00 $2.05 Class C $1.68 $1.71 $1.72

space. Over the same period, net absorption totaled 1,088,470 square feet. This represented 161 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 5.1 percent in October 2017, down from 5.5 percent in October 2016. From October 2016 to October 2017, total employment in Southern Nevada increased by 41,600 jobs, a 4.4 percent increase. Historical Net Absorption vs. Completions 600,000 500,000 400,000 300,000 Southern Nevada s office market welcomed 346,000 square feet of new 200,000 development in 2017, almost half of it in the new Credit One headquarters 100,000 building completed in the Southwest submarket this quarter. The amount of office space in the construction pipeline increased dramatically in 2017 compared to 2016. There were 1.5 million square feet of office product under construction or planned at the end of 2017, compared to 684,000 square feet of forward supply in 2016. This is significant. Development in Southern Nevada s industrial sector did not increase significantly until industrial vacancy had drawn fairly close to its long-term average. That we are seeing an increase in office development while vacancy rates are still well above the long-term average suggests that some portion of the current vacant office inventory will have a difficult time competing in the future. In essence, the market has moved on, and some office properties might have been left behind. 0 Occupancy vs. Office Employment 140,000 135,000 130,000 125,000 4 Q 2015 1 Q 2016 2 Q 2016 Net Absorption 3 Q 2016 4 Q 2016 1 Q 2017 2 Q 2017 Completions 3 Q 2017 4 Q 2017 86.0% 85.0% 84.0% 83.0% Southern Nevada s office market had 1,088,470 square feet of net absorption in 2017. This was higher than last year, when occupied inventory increased by 654,808 square feet. This extended the current streak of positive net absorption to twelve quarters, and suggests that the market should now be transitioning from recovery to expansion. Year-end net absorption was highest this quarter in the Southwest submarket (472,663 square feet), followed by Henderson (198,944 square feet) and Northwest (185,398 square feet). Three submarkets experienced negative net absorption in 2017, North Las Vegas (negative 6,768 square feet), Downtown (negative 21,966 square feet) and East Las Vegas (negative 22,710 square feet). Throughout this recovery there has been a movement of office tenants from East Las Vegas, the dominant office market in the Valley in the 1980 s and 1990 s, to the west side of the Valley. Demand for office space over the past two quarters came primarily from professional and business services, financial activities and engineering and 120,000 115,000 110,000 4 Q 2015 1 Q 2016 2 Q 2016 Office Jobs 3 Q 2016 OCT 2016 OCT 2017 CHANGE Information 11,000 10,900-100 Financial Activities 49,400 50,300 + 900 Professional & Business Services 138,100 144,200 + 6,100 Health Care 63,500 65,200 + 1,700 4 Q 2016 82.0% 81.0% 80.0% Source: Nevada Department of Employment, Training and Rehabilitation 1 Q 2017 2 Q 2017 3 Q 2017 Occupancy Rate 4 Q 2017 Vacancy by Size Range Q3-2017 Q4-2017 DIFFERENCE Size Range Units Total SF Units Total SF Units Total SF 0 to 2,500 sf 994 2,070,213 990 1,830,245-4 - 23,997 2,501 to 5,000 sf 472 1,986,048 442 1,784,385-30 - 20,166 5,001 to 10,000 sf 180 1,368,276 190 1,354,821 +10-13,455 10,001 to 20,000 sf 76 1,137,639 66 973,972-10 - 163,667 20,000 sf + 27 942,238 34 1,168,347 +7 + 226,109 15 Las Vegas Research & Forecast Report Q4 2017 Office Colliers International

Investment Sales Activity 2013 2014 2015 2016 2017 No. Sales 85 67 59 45 94 Square Footage 3,416,000 2,302,000 1,712,000 1,449,000 3,507,698 Sales Volume $522.2 MM $250.0 MM $284.3 MM $200.9 MM $656.8 MM Average Price/SF $152.84 $108.59 $166.06 $138.70 $187.23 Average Cap Rate 7.6% 7.7% 7.5% 7.8% 7.5% Average Sale Size (SF) 40,000 34,000 29,000 32,200 37,300 * Note Data in this graph no longer includes medical office management 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) 46.3 percent and tenants from the Southeastern states 17.6 percent. The extent to which the introduction of 347 square feet per job, and has been sliding ever since; it was 288 square feet per job in 2016. 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. Chick-fil-A to Southern Nevada increased office demand by Southeastern companies is unknown. The office vacancy rate in Southern Nevada at the end of 2017 was 15.4 percent, a decrease from last year s rate of 17.2 percent. While this Southern Nevada currently averaged 278 square feet of occupied office space per office job in 2017. This number peaked in 2010 at approximately represents a distinct improvement, it remains higher than the pre-2006 average of 9.0 percent vacancy. Office vacancy decreased in four of Net absorption in Southern Nevada s office market topped 1 million square feet in 2017, a distinct improvement over 2016 Office Development Schedule PROJECT CLASS SUBMARKET SIZE PRE-LEASING Q1-2018 103,010 SF 39% GLVAR HQ B Southwest 40,646 SF BTS St Rose Coronado Center B Henderson 62,364 SF 0% Q2-2018 220,500 SF 100% Aristocrat Technologies HQ B Northwest 180,000 SF BTS Roberts Communication Complex B Henderson 40,500 SF BTS Q3-2018 202,300 SF 0% One Summerlin 2 A Northwest 152,300 SF 0% Seven Hills Plaza Bldg D B Henderson 50,000 SF 0% 2018/2019 965,412 SF 18% 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 The Square C Southwest 36,722 SF 0% University Gateway B East Las Vegas 21,885 SF 100% UNLV Harry Reid Tech Park A Southwest 110,705 SF BTS 16 Las Vegas Research & Forecast Report Q4 2017 Office Colliers International

the Valley s eight submarkets in 2017, with the Henderson submarket experiencing the largest decrease (3.8 percentage points), followed by West Central (2.8 points) and the Southwest (2.4 points). Vacancy increased by 0.9 points in North Las Vegas and by 0.4 points in the Downtown and East Las Vegas submarkets. When examined by the size range of vacant units (including vacant units for sub-lease), demand this quarter was highest for spaces between 10,001 and 20,000 square feet, followed by spaces under 2,500 square feet and spaces between 2,501 and 5,000 square feet. The largest size range, units over 20,000 square feet, saw vacancy increase by 226,109 square feet. The weighted average asking rental rate for office space in Southern Nevada decreased by $0.02 to $2.04 psf FSG basis in 2017 over 2016 s asking rate of $2.02 psf FSG. The Valley s asking rate has hovered between $2.01 and $2.02 from the third quarter of 2016 to the third quarter of 2017, so the fourth quarter s bump up to $2.04 psf FSG is notable. The Southwest remained the most expensive submarket in the Valley this quarter, with an asking rental rate of $2.36 psf FSG, ahead of Downtown s $2.21 psf FSG. The Valley s lowest average asking rate is in the North Las Vegas submarket, at $1.64 psf FSG. Office space available for sublease increased in the fourth quarter of 2017 to 444,132 square feet from last year s total of 383,923 square feet. Available sublease space can be a canary in the coal mine for the office market, pointing to future additions of directly available space to the market. If investment sales are a good indication of the market s faith in the future, Southern Nevada s office market has a bright future ahead of it. In 2017 the Valley s office market posted sales volume of $656.8 million in 94 sales totaling 3,507,698 square feet with an average price per square foot of $187.23 and an average cap rate of 7.5 percent. The average investment sales price in 2016 was just $138.70 due to the sale of a large building in the Downtown submarket. Sales volume so far in 2017 was the highest in the past five years. At the end of 2017 there were 1.4 million square feet of office available for sale as an investment with an average asking price of $220.58 psf and an average cap rate of 6.7 percent. After three years of slow and steady recovery, Southern Nevada s office market may be ready to transition into an expansion phase. Forward supply of office space increased significantly in 2017 over 2016, and investment sales are strong, indicating that investors and developers are bullish on the market s future. We think that, provided the national economy continues to improve, Southern Nevada s office market will experience a healthy 2018, with new construction increasing overall demand in the marketplace and putting increased pressure on older properties that are still trying to recover from Great Recession. 17 Las Vegas Research & Forecast Report Q4 2017 Office Colliers International

215 NORTH LAS VEGAS Significant Office Sale Activity Centra Point at the Curve 95 377,406 SF - $76,990,824 $204.00/SF September 2017 NORTHWEST 15 Class B Canyons Center Summerlin SUMMERLIN WEST CENTRAL DOWN TOWN 95 EAST LAS VEGAS 125,118 SF - $28,062,957 $224.00/SF September 2017 Class A Corporate Center the Curve 95,002 SF - $30,125,000 $317.00/SF November 2017 Class B 215 AIRPORT Green Valley Corporate Center 119,198 SF - $23,900,000 $201.00/SF SOUTHWEST HENDERSON October 2017 Class B The Park at Spanish Ridge 71,024 SF - $17,600,000 $248.00/SF September 2017 Class B Lease Activity Property Name Lease Date Lease Term Size Lease Rate Type Las Vegas Digital Exchange Campus Oct 2017 62 months 30,498 SF $1.54 NNN Class C Peak Professional Building Oct 2017 37 months 6,783 SF $1.17 MG Class B Shadow Quail Park Oct 2017 36 months 3,684 SF $1.60 MG Class B City Center West Oct 2017 27 months 3,524 SF $2.09 FSG Class A Sunset Ridge Professional Plaza Nov 2017 37 months 2,538 SF $0.70 NNN Class C 18 Las Vegas Research & Forecast Report Q4 2017 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 729,174 205,540 28.2% 15,326 220,866 30.3% 27.0% (8,430) 40,109 - - - - $2.84 B 2,403,646 263,847 11.0% 8,412 272,259 11.3% 12.2% 18,697 81,076 - - - - $1.97 C 3,217,340 515,049 16.0% 25,123 540,172 16.8% 16.8% 1,913 22,156 - - - - $1.79 Total 6,350,160 984,436 15.5% 48,861 1,033,297 16.3% 16.3% 12,180 143,341 - - - - $2.06 DOWNTOWN SUBMARKET A 1,232,341 249,916 20.3% 12,165 262,081 21.3% 21.0% (533) (19,744) - - - 500,000 $2.66 B 2,355,207 244,866 10.4% 2,353 247,219 10.5% 11.3% 18,432 (2,970) - - - - $2.11 C 1,443,279 170,455 11.8% - 170,455 11.8% 11.4% (6,436) 748 - - - - $1.68 Total 5,030,827 665,237 13.2% 14,518 679,755 13.5% 13.7% 11,463 (21,966) - - - 500,000 $2.21 EAST LAS VEGAS SUBMARKET A 1,353,083 288,962 21.4% 24,062 313,024 23.1% 23.4% (6,550) 5,102 - - - - $2.81 B 1,542,404 378,334 24.5% 2,967 381,301 24.7% 25.1% 5,901 70,154 - - - 21,885 $1.39 C 2,591,966 620,429 23.9% 8,401 628,830 24.3% 22.2% (50,922) (97,966) - - - - $1.41 Total 5,487,453 1,287,725 23.5% 35,430 1,323,155 24.1% 23.3% (51,571) (22,710) - - - 21,885 $1.72 HENDERSON SUBMARKET A 583,905 185,319 31.7% 8,523 193,842 33.2% 37.8% 24,690 29,854 - - - - $2.65 B 2,584,971 361,258 14.0% 47,447 408,705 15.8% 16.2% 14,330 50,348 - - 152,864 - $2.08 C 2,162,926 244,703 11.3% 8,034 252,737 11.7% 14.1% 53,878 118,742 - - - 30,000 $1.87 Total 5,331,802 791,280 14.8% 64,004 855,284 16.0% 17.7% 92,898 198,944 - - 152,864 30,000 $2.15 NORTH LAS VEGAS SUBMARKET A - - n/a - - n/a n/a - - - - - - $- B 245,696 56,227 22.9% - 56,227 22.9% 18.9% (9,681) (23,077) - - - - $1.92 C 543,389 90,244 16.6% - 90,244 16.6% 16.8% (2,823) 16,309 - - - - $1.47 Total 789,085 146,471 18.6% - 146,471 18.6% 23.3% (12,504) (6,768) - - - - $1.64 NORTHWEST SUBMARKET A 1,960,287 372,115 19.0% 55,927 428,042 21.8% 17.6% (27,443) 119,657 - - 152,300 - $2.45 B 3,546,217 547,639 15.4% 21,261 568,900 16.0% 14.2% (43,413) 42,800 - - 180,000 87,000 $2.22 C 3,369,299 343,959 10.2% 4,665 348,624 10.3% 10.5% 10,337 22,941 - - - 37,100 $1.85 Total 8,875,803 1,263,713 14.2% 81,853 1,345,566 15.2% 13.6% (60,519) 185,398 - - 332,300 124,100 $2.19 SOUTHWEST SUBMARKET A 597,112 23,187 3.9% - 23,187 3.9% 5.3% 8,551 8,104 - - - 210,705 $2.49 B 3,350,709 467,979 14.0% 8,944 476,923 14.2% 13.8% 97,603 420,800 152,000 336,000 40,646 42,000 $2.54 C 3,525,904 420,162 11.9% 3,000 423,162 12.0% 12.6% 23,986 43,759-10,000-36,722 $2.15 Total 7,473,725 911,328 12.2% 11,944 923,272 12.4% 12.5% 130,140 472,663 152,000 346,000 40,646 289,427 $2.36 WEST CENTRAL SUBMARKET A 157,624 18,803 11.9% 2,421 21,224 13.5% 13.5% - - - - - - $2.46 B 1,922,915 398,742 20.7% - 398,742 20.7% 20.8% 1,662 55,443 - - - - $1.90 C 3,025,646 395,307 13.1% 8,151 403,458 13.3% 13.9% 23,324 84,125 - - - - $1.56 Total 5,106,185 812,852 15.9% 10,572 823,424 16.1% 16.5% 24,986 139,568 - - - - $1.75 MARKET TOTAL A 6,613,526 1,343,842 20.3% 118,424 1,462,266 22.1% 21.7% (9,715) 183,082 - - 152,300 710,705 $2.65 B 17,951,765 2,718,892 15.1% 91,384 2,810,276 15.7% 15.5% 103,531 694,574 152,000 336,000 373,510 150,885 $2.05 C 19,879,749 2,800,308 14.1% 57,374 2,857,682 14.4% 14.6% 53,257 210,814-10,000-103,822 $1.72 Total 44,445,040 6,863,042 15.4% 267,182 7,130,224 16.0% 16.0% 147,073 1,088,470 152,000 346,000 525,810 965,412 $2.04 QUARTERLY COMPARISON AND TOTALS Q4-17 44,445,040 6,863,042 15.4% 267,182 7,130,224 16.0% 16.0% 147,073 1,088,470 152,000 346,000 525,810 965,412 $2.04 Q3-17 44,293,040 6,858,115 15.5% 236,068 7,094,183 16.0% 16.5% 267,963 941,397 10,000 194,000 447,810 798,068 $2.01 Q2-17 44,283,040 7,116,078 16.1% 197,574 7,313,652 16.5% 17.4% 545,955 673,434 184,000 184,000 224,364 946,014 $2.02 Q1-17 44,099,040 7,478,033 17.0% 199,166 7,677,199 17.4% 17.7% 127,479 127,479 - - 256,364 739,046 $2.02 Q4-16 44,099,040 7,605,512 17.2% 192,057 7,797,569 17.7% 17.5% 40,170 654,808 160,103 292,208 194,000 490,400 $2.02 Q3-16 43,938,937 7,485,579 17.0% 204,870 7,690,449 17.5% 17.9% 216,559 614,638-132,105 386,603 281,302 $2.01 Q2-16 43,938,937 7,702,138 17.5% 157,956 7,860,094 17.9% 18.0% 119,251 398,079 121,405 132,105 386,603 421,140 $1.99 19 Las Vegas Research & Forecast Report Q4 2017 Office Colliers International

Research & Forecast Report LAS VEGAS RETAIL Q4 2017 Last Second Save > > Net absorption was very strong in the fourth quarter, bringing year end net absorption to almost 500,000 square feet > > Vacancy decreased to 8.1 percent at year s end Economic Indicators RETAIL Employment RETAIL Taxable Sales RETAIL SF/Job > > Asking rental rates showed a modest increase to $1.35 per square foot on a triple-net basis. +2.9 +1.5% Southern Nevada s retail market was heading for a lackluster year in 2017 until the fourth quarter. With a last second save, the market produced 497,892 square feet of net absorption, dropping retail vacancy to 8.1 percent. Asking rental rates managed a tiny bump, yearover-year, to $1.35 per square foot (psf) on a triple-net (NNN) basis. According to the Nevada Department of Employment, Training and Rehabilitation, Southern Nevada s retail job market suffered in October 2017, losing approximately 1,000 jobs over the past twelve months. After gaining retail jobs from 2012 to 2015, the Valley has now lost retail jobs for the past two years. Unemployment in the Las Vegas- Paradise MSA stood at 5.1 percent in October 2017, down from 5.5 Historical Vacancy Rates and Asking Lease Rates Market Indicators Relative to prior period Q4 2017 Q1 2018* VACANCY NET ABSORPTION CONSTRUCTION RENTAL RATE *Projected -0.7% Summary Statistics Q3 2017 Las Vegas Market Q4-16 Q3-17 Q4-17 Vacancy Rate 8.3% 8.3% 8.1% Asking Rent (PSF, NNN) $1.35 $1.34 $1.35 Net Absorption (SF) 234,591 68,470 319,223 New Completions (SF) 65,851 119,220 241,550 Overall Asking Rents Per Square Foot Power Center $1.58 $1.52 $1.55 Community Center $1.26 $1.31 $1.33 Southern Nevada is struggling with headwinds caused by e-commerce and at the same time is dealing with a retail migration from east to west. Neighborhood Center $1.50 $1.42 $1.41 Strip Center $1.22 $1.23 $1.25

percent in October 2016. From October 2016 to October 2017, total employment in Southern Nevada increased by 41,600 jobs, a 4.4 percent increase. Historical Net Absorption vs. Completions The Nevada Department of Taxation reports that Clark County s taxable retail sales for the past twelve months (October 2016 to September 2017, the most recent month of data available) totaled $29.7 billion, up from $28.7 billion in the previous twelve months. Over that same timeframe, taxable sales were $4.7 billion in the automotive sector, $10.7 billion in food service and $13.9 billion in other retail (excluding gas stations). The highest year-over-year growth in taxable retail sales in June- September 2017 were in miscellaneous retail (28.1 percent), home and garden stores (6.8 percent growth) and food and beverage stores (5.6 percent growth). Year-over-year taxable sales decreased in sporting goods and hobby stores (negative 6.6 percent), electronics and appliance stores (negative 5.9 percent growth) and clothing stores (negative 1.3 percent growth). Non-store retailers posted negative 4.7 percent year-over-year growth, bucking the long-term trend of strong growth in that sector. The last time non-store retailers experienced negative taxable sales growth was January, 2015. Year-over-year taxable sales growth for non-store retailers since January, 2015 then has averaged 17.7 percent. Occupancy vs. Retail Employment Two neighborhood centers were completed in the Valley in the fourth quarter of 2017, DCs Plaza in the Northwest submarket and the Blue Diamond Walmart center in the Southwest submarket. This brought total retail completions for 2017 to 414,359 square feet, almost double what was completed in 2016. The market currently has 209,237 square feet of retail product under construction, and approximately 209,000 square feet scheduled for completion in 2018. A total of 2.1 million square feet of retail is planned to begin construction over the next twelve months. Net absorption was 497,892 square feet in 2017, approximately half the net absorption in 2016. Net absorption this year was highest in unanchored strip centers (163,517 square feet) and lowest in power centers (36,366 square feet); a sign of the weakness experienced by large anchor retailers nationally. 21 Las Vegas Research & Forecast Report Q4 2017 Retail Colliers International

Net absorption was positive in five of the Valley s eight submarkets in 2017, including Southwest (393,165 square feet), West Central (115,417 square feet) and Northwest (77,395 square feet). Net absorption was negative in Downtown (negative 40,406 square feet), Northeast (negative 19,561 square feet) and University East (negative 99,162 square feet). Aside from Henderson, demand for retail space is generally weak on the east side of town as the Valley s population center moves west. Gross absorption of retail product totaled 2.6 million square feet in 2017, lower than 2016 s gross absorption of 3.9 million square feet. In general, there was less absorption in the retail market, both net and gross, in 2017 than in 2016. Coupled with negative growth in retail employment over the past twelve months, we see a market in flux, most likely driven by technological change. Weakness in the anchor retailer segment of the market is stunting overall growth in retail occupancy. Eight anchor spaces totaling 336,725 square feet were vacated in 2017. Compare this to 2016, when a total of 128,396 square feet of anchor space was brought to market and you can see the scope of the challenge faced by Southern Nevada and many other communities. Adding to these woes is the recent declaration of bankruptcy by Toys R Us and Goodwill of Southern Nevada, and the continued closure of K-Mart and Sears locations. Fortunately, a few new anchors are counterbalancing these closures, including Burlington, La Bonita Supermarket, Ross Dress for Less and the PGA Tour Superstore. Retail vacancy in Southern Nevada was 8.1 percent at the end of 2017, lower than 2016 s 8.3 percent vacancy. Retail vacancy has bounced between 8.1 and 8.4 percent over the past year, showing a general downward trend. The last significant decrease in retail vacancy occurred in 2016, when vacancy decreased from 9.4 to 8.6 percent. Among submarkets, the Valley s highest vacancy this quarter was 13.0 percent in University East, while the lowest vacancy rate was 4.4 percent in the Southwest submarket, a sign of the demographic migration of the Valley s middle class from the east side of the Valley, Retail Development Schedule Project Type Submarket Size (SF) Pre-Leasing Q1-2018 18,000 SF 8% St Rose Coronado Center Strip Retail Henderson 18,000SF 8% Q2-2018 58,000 SF 0% Shoppes on the Parkway Henderson Strip Retail 58,000 SF 0% Q3-2018 133,000 SF 54% Mountains Edge Marketplace Community Center Southwest 133,000 SF 54% 2018/2019 1,842,000 SF 40% 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% Kaktus Life Strip Retail Southwest 29,000 SF 0% Maryland & Silverado Sprouts Neighborhood Center University East 51,000 SF 72% Quail Bonita Strip Retail Henderson 42,000 SF 21% Rainbow & Arby Sprouts Neighborhood Center Southwest 65,000 SF 53% Rainbow Blue Diamond Strip Retail Southwest 45,000 SF 0% Sahara Crossing Strip Retail Downtown 41,000 SF 0% St Rose Square Henderson Neighborhood Center 466,000 SF 45% Shanghai Plaza Strip Retail West Central 80,000 SF 0% Silverado Promenade Neighborhood Center University East 130,000 SF 100% The Bend Community Center Southwest 200,000 SF 0% The Gateway Henderson Strip Retail 35,000 SF 57% Union Village Henderson Strip Retail 125,000 SF 0% University Gateway Strip Retail University East 19,000 SF 80% 22 Las Vegas Research & Forecast Report Q4 2017 Retail Colliers International

Single-Tenant Retail 2013 2014 2015 2016 2017 No. Sales 47 61 66 68 52 Square Footage Sold 719,000 643,000 981,000 572,000 409,000 Sales Volume $139.8 MM $187.5 MM $306.2 MM $176.6 MM $150.1 MM Average Price/SF $194.55 $291.50 $312.00 $308.44 $367.30 Average Sale Size (SF) 15,300 10,500 14,900 8,400 7,900 Cap Rate 7.2% 7.2% 7.0% 6.3% Shopping Center Retail 2013 2014 2015 2016 2017 No. Sales 48 60 58 41 47 Square Footage Sold 3,192,000 4,025,000 3,195,000 2,528,000 4,590,000 Sales Volume $359.2 MM $504.5 MM $588.1 MM $419.7 MM $696.0 MM Average Price/SF $112.52 $125.33 $184.08 $166.00 $151.63 Average Sale Size (SF) 66,000 67,000 55,000 62,000 98,000 Cap Rate 8.9% 7.7% 6.7% 8.7% where they settled during the 1970 s and 1980 s, to the west side of the Valley and Henderson, which have predominated since the 1990 s. Vacancy decreased in 2017 in North Las Vegas, Southwest and West Central. The average asking rental rate for retail space in Southern Nevada was $1.35 psf NNN at the end of 2017, the same as at the end of 2016. Over the course of 2017, the average asking rent bounced between $1.34 psf and $1.36 psf, with no clear trend. Three submarkets saw asking rates increase in 2017, Downtown ($0.08 psf), North Las Vegas ($0.16 psf) and Northwest ($0.09 psf). Asking rates decreased in West Central ($0.05 psf), Henderson ($0.04 psf), Northeast ($0.04 psf), University East ($0.03 psf) and Southwest ($0.03 psf). Asking rents decreased in power centers ($0.03 psf) and neighborhood centers ($0.09 psf) and increased in community centers ($0.05) and strip centers ($0.03 psf). Single-tenant retail investment sales volume so far in 2017 was $150.1 million in 52 sales totaling 409,000 square feet. This rendered an average price per square foot of $367.30. 2017 was a weaker year for single-tenant investment sales than the previous five years. Cap rates have seen significant compression over the past five years, and the average price per square foot decreased for the second straight quarter. Investors are picking up smaller buildings with national credit tenants for lower cap rates than in past years. Shopping center investment sales volume in 2017 was $696 million in 47 sales totaling 4.6 million square feet. This rendered an average price per square foot of $151.63, lower than in the two previous years. The average size of a shopping center sold in 2017 was 98,000 square feet, the highest it has been in five years. The average cap in 2017 was 8.7 percent, a significant increase from 2016. with negative growth in retail employment over the past twelve months, we see a market in flux, most likely driven by technological change. 23 Las Vegas Research & Forecast Report Q4 2017 Retail Colliers International

Two trends are impacting Southern Nevada s retail market. The first is a national trend, namely the continued impact of technology on how retail services are delivered to customers. This transition appears, at the moment, to be impacting large anchor stores the most negatively. The second trend is demographic. Beginning in the 1990 s, population in Southern Nevada started shifting away from the central and eastern portions of the Valley and towards Henderson in the southeast, and the west side of town. By the 2000 s, the shift of the middle class from the Valley s east side began to affect the older shopping centers on the east side, and in the 2010 s the impact is more significant. This means that Southern Nevada is struggling with headwinds caused by e-commerce and at the same time is dealing with a retail migration from east to west. If the national economy remains in positive territory in 2018, we think Southern Nevada will reap the benefits and experience another small decrease in vacancy by year s end. The Downtown, University East and Northeast submarkets will probably continue to struggle, while the Northwest, Southwest and Henderson submarkets will become marginally stronger. Households (2017) Avg. HH Income (2017) Occupied Retail Space (2016 Avg.) Occupied Retail Space (2017 Avg.) Downtown 38,000 $41,000 2,010,000 2,031,000 Henderson 112,800 $86,000 9,537,000 9,579,000 North Las Vegas 75,200 $67,000 5,625,000 5,782,000 Northeast 82,300 $55,000 3,122,000 3,102,000 Northwest 181,600 $85,000 12,741,000 12,961,000 Southwest 99,000 $81,000 7,587,000 7,741,000 University East 108,100 $61,000 7,889,000 7,996,000 West Central 56,300 $53,000 6,303,000 6,191,000 Source of Demographic Data: Claritas 24 Las Vegas Research & Forecast Report Q4 2017 Retail Colliers International

Significant Retail Sale Activity 215 NORTH LAS VEGAS Green Valley Crossing 99,300 SF - $45,575,000 $458.96/SF NORTHWEST 95 November 2017 Multi-Tenant/Target 15 Green Valley Crossing 45,000 SF - $16,575,000 WEST CENTRAL DOWN TOWN NORTHEAST LAS VEGAS $368.33/SF September 2017 Multi-Tenant/Bouncy World Green Valley Town Center II 117,902 SF - $13,010,521 95 $110.35/SF September 2017 UNIVERSITY AIRPORT Multi-Tenant/Galaxy Theatre Gateway Plaza 215 55,278 SF - $9,750,000 $176.38/SF SOUTHWEST HENDERSON September 2017 Multi-Tenant/Albertsons RESORT CORRIDOR Renaissance Center East 145,584 SF - $12,400,000 $85.17/SF September 2017 Multi-Tenant/Savers Lease Activity Property Name Tenant Lease Date Lease Term Size Lease Rate Type 675 Mall Ring Circle Taquiera El Buen Pastor Nov 2017 124 months 2,905 SF $3.35 NNN Freestanding Pebble Marketplace Midori Oct 2017 60 months 2,514 SF $2.47 NNN Neighborhood Center Sunset Ridge Center Cobra Kai Jiu Jitsu Oct 2017 65 months 2,400 SF $1.47 NNN Strip Center DCs Plaza Firehouse Subs Nov 2017 120 months 1,650 SF $3.15 NNN Neighborhood Center Horizon Town Center Future Nails Oct 2017 36 months 1,393 SF $1.24 NNN Neighborhood Center 25 Las Vegas Research & Forecast Report Q4 2017 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 66,162 9.0% - 66,162 9.0% 11.5% 17,996 11,861 - - - - $1.29 NC 588,070 106,283 18.1% - 106,283 18.1% 18.6% 3,010 (40,511) - - - - $0.94 SC 989,530 87,826 8.9% - 87,826 8.9% 9.9% 8,218 (11,756) - 19,800-40,500 $1.41 Total 2,308,786 260,271 11.3% - 260,271 11.3% 12.6% 29,224 (40,406) - 19,800-40,500 $1.28 HENDERSON PC 2,896,215 77,576 2.7% - 77,576 2.7% 2.3% (10,295) 21,665 - - - - $1.89 CC 2,724,168 147,824 5.4% - 147,824 5.4% 6.0% 15,547 39,874-33,789 - - $1.47 NC 2,930,045 372,399 12.7% 118,847 491,246 16.8% 15.2% (45,513) (24,115) - - - 618,422 $1.31 SC 1,929,708 292,841 15.2% 1,700 294,541 15.3% 16.6% 27,163 (7,257) - 21,000 76,237 301,860 $1.21 Total 10,480,136 890,640 8.5% 118,847 1,009,487 9.6% 9.5% (13,098) 30,167-54,789 76,237 920,282 $1.35 NORTH LAS VEGAS PC 774,065 31,979 4.1% - 31,979 4.1% 4.1% 7 7 - - - - $2.25 CC 2,150,284 126,516 5.9% - 126,516 5.9% 6.1% 4,160 31,896 - - - - $1.57 NC 2,025,313 167,912 8.3% 2,687 170,599 8.4% 6.5% (42,811) (17,417) - - - - $1.64 SC 1,289,578 147,891 11.5% - 147,891 11.5% 11.1% (4,800) 26,391 - - - 122,718 $1.43 Total 6,239,240 474,298 7.6% 2,687 476,985 7.6% 7.0% (43,444) 40,877 - - - 122,718 $1.60 NORTHEAST PC - - n/a - - n/a n/a - - - - - - $- CC 1,295,615 82,132 6.3% - 82,132 6.3% 7.2% (7,196) (14,100) - - - - $1.59 NC 1,307,891 84,567 6.5% 43,687 128,254 9.8% 11.6% 5,309 (2,182) - - - - $1.21 SC 769,047 111,408 14.5% - 111,408 14.5% 14.8% 2,266 (3,279) - - - - $0.96 Total 3,372,553 278,107 8.2% 43,687 321,794 9.5% 10.7% 379 (19,561) - - - - $1.22 NORTHWEST PC 3,171,110 298,348 n/a - 298,348 9.4% 8.6% (24,776) (62,320) - - - - $1.57 CC 4,800,446 102,179 2.1% 75,636 177,815 3.7% 4.5% 38,681 27,920 - - - - $1.98 NC 3,492,056 305,613 8.8% 35,431 341,044 9.8% 8.8% 32,538 55,999 72,550 72,550 - - $1.59 SC 2,472,006 217,140 8.8% - 217,140 8.8% 10.4% 40,417 55,796-26,220-31,000 $1.36 Total 13,935,618 923,280 6.6% 111,067 1,034,347 7.4% 7.6% 86,860 77,395 72,550 98,770-31,000 $1.57 SOUTHWEST PC 944,314 17,700 1.9% - 17,700 1.9% 0.8% (10,500) 28,396 - - - - $1.93 CC 2,555,783 108,267 4.2% - 108,267 4.2% 4.2% (1,871) 69,919-72,000 133,000 407,250 $1.71 NC 2,472,100 103,795 4.2% 5,926 109,721 4.4% 6.3% 202,257 218,212 169,000 169,000-217,200 $1.96 SC 2,362,182 138,743 5.9% - 138,743 5.9% 6.0% 3,153 76,638 - - - 124,583 $1.58 Total 8,334,379 368,505 4.4% 5,926 374,431 4.5% 4.9% 193,039 393,165 169,000 241,000 133,000 749,033 $1.74 UNIVERSITY EAST PC 1,210,223 131,020 10.8% - 131,020 10.8% 10.3% (6,156) (8,504) - - - - $1.16 CC 2,946,813 359,180 12.2% 28,955 388,135 13.2% 14.1% 28,162 (64,069) - - - - $0.96 NC 2,018,675 179,017 8.9% 163,160 342,177 17.0% 16.0% (19,832) (30,551) - - - 180,588 $1.34 SC 2,990,552 524,469 17.5% 1,800 526,269 17.6% 17.5% (4,288) 3,962 - - - 19,124 $1.09 Total 9,166,263 1,193,686 13.0% 192,115 1,385,801 15.1% 15.1% (2,114) (99,162) - - - 199,712 $1.10 WEST CENTRAL PC 1,138,224 57,076 5.0% - 57,076 5.0% 7.9% 32,934 57,122 - - - - $1.35 CC 1,673,939 211,978 12.7% - 211,978 12.7% 14.0% 22,668 36,193 - - - - $1.13 NC 1,777,642 115,369 6.5% 50,121 165,490 9.3% 9.7% 9,451 (920) - - - - $1.07 SC 2,167,098 132,106 6.1% - 132,106 6.1% 6.2% 3,324 23,022 - - - 80,000 $1.22 Total 6,756,903 516,529 7.6% 50,121 566,650 8.4% 9.4% 68,377 115,417 - - - 80,000 $1.16 MARKET TOTAL PC 10,134,151 613,699 6.1% - 613,699 6.1% 5.9% (18,786) 36,366 - - - - $1.55 CC 18,878,234 1,204,238 6.4% 104,591 1,308,829 6.9% 7.7% 118,147 139,494-105,789 133,000 407,250 $1.33 NC 16,611,792 1,434,955 8.6% 419,859 1,854,814 11.2% 10.9% 144,409 158,515 241,550 241,550-1,016,210 $1.41 SC 14,969,701 1,652,424 11.0% 3,500 1,655,924 11.1% 11.6% 75,453 163,517-67,020 76,237 719,785 $1.25 Total 60,593,878 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 QUARTERLY COMPARISON AND TOTALS Q4-17 60,593,878 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 60,352,328 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 60,233,108 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 60,233,108 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 Q4-16 60,179,519 4,988,849 8.3% 354,423 5,343,272 8.9% 9.6% 234,591 900,447 65,851 240,625 523,506 1,385,706 $1.35 Q3-16 60,113,668 5,157,589 8.6% 639,448 5,797,037 9.6% 10.2% 408,766 665,856 71,069 174,774-1,564,516 $1.32 Q2-16 60,042,599 5,495,286 9.2% 618,699 6,113,985 10.2% 10.2% (26,507) 257,090 23,705 103,705 71,069 1,492,349 $1.30 PC = Power Center CC = Community Center NC = Neighborhood Center SC = Strip Center 26 Las Vegas Research & Forecast Report Q4 2017 Retail Colliers International

Research & Forecast Report LAS VEGAS MULTIFAMILY Q4 2017 Multifamily Stumbles > > Multifamily vacancy increased to 3.2 percent in the third quarter of 2017 > > The third quarter saw 426 new multifamily units completed > > Rental rates continued to increase, reaching an average of $985 per unit According to statistics provided by REIS, multifamily vacancy in Southern Nevada increased by 0.2 points in the third quarter of 2017 (the most recent quarter of available data) to 3.2 percent. Vacancy this quarter was 0.3 points higher than it was one year ago. Class A properties were 3.6 percent vacant in the third quarter, 0.3 points higher than one quarter ago. Class B/C properties were 2.8 percent vacant, 0.3 points higher than one quarter ago. Until the third quarter, the concern that there was too much new construction of multifamily appeared to be unfounded. While net absorption numbers were not as strong in 2017 as in 2015, net absorption was generally keeping pace with new completions and vacancy remained low. This quarter, net absorption fell into negative territory for the first time in a very long time, putting the Economic Indicators ELECTRIC Meter Hookups Market Indicators Relative to prior period Q3 2017 Q4 2017* VACANCY NET ABSORPTION COMPLETIONS RENTAL RATE *Projected +2.0% NEW HOME Median Price +14.4% THIRTY YEAR Mortgage Rate +0.3 Points Historical Vacancy Rates and Rental Rates 4.5% 4.0% 3.5% 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% Vacancy vs Rents $1,000 $980 $960 $940 $920 $900 $880 Summary Statistics Las Vegas Market Q3-16 Q2-17 Q3-17 Vacancy Rate 2.9% 3.0% 3.2% Asking Rent (PSF, NNN) $950 $978 $985 Net Absorption YTD (Units) 814 254-50 New Completions YTD (Units) 911 0 426 0.0% 4 Q 2015 1 Q 2016 2 Q 2016 3 Q 2016 4 Q 2017 1 Q 2017 2 Q 2017 3 Q 2017 $860 Overall Asking Rents Vacancy Rate Average Rental Rate Per Unit Per Month demand for multifamily should rebound from current lows in 2018, but perhaps not without adjustments to asking rent. Class A $1,084 $1,121 $1,136 Class B/C $813 $834 $831

more than 4,000 units of multifamily under construction and another 11,000 units of multifamily planned to begin construction in the next twelve months in a different perspective. Only three of the Valley s submarkets had positive net absorption in the third quarter of 2017, with the most net absorption occurring in the Henderson/Green Valley submarket (311 units). Net absorption was markedly lower in the Northeast submarket (36 units) and Northwest/Southwest submarket (25 units). The most negative net absorption was registered in Downtown (negative 114 units), followed by East Las Vegas and North Las Vegas, with negative 92 units of net absorption each. According to REIS, 426 units of new multifamily were completed in Southern Nevada in the third quarter of 2017. A total of 6,000 units were under construction, most of them in the Henderson/Green Valley and Northwest/Southwest submarkets. Colliers is currently tracking 5,786 units under construction. We expect 3,000 units of multifamily could be completed in the fourth quarter of 2017. Current multifamily development is concentrated along the I-215 Beltway, which runs from the Henderson/Green Valley submarket to the Northwest/Southwest submarket. Another 10,271 units of multifamily are planned to begin construction within the next twelve months. Complex Under Construction Submarket Units Castile Apartments & Senior Living Henderson/GV 499 Evolve Apartment Homes Henderson/GV 398 Silverado West Apartments Henderson/GV 362 Elysian @ Flamingo Northwest/Southwest 360 Elysian @ Stone Lake Henderson/GV 360 The Gallery Phase II Northwest/Southwest 325 The Abode Red Rock Northwest/Southwest 308 Inspire Apartment Homes Northwest/Southwest 307 Loftus Apartments West Central 295 East Gibson Apartments Henderson/GV 288 Eden West Southwest 276 Boulder Pines Family Apartments East Las Vegas 264 Vue at Centennial Phase II North Las Vegas 261 Picerne Oquendo Northwest/Southwest 244 Fremont9 Downtown 231 U District The Degree Henderson/GV 226 South Beach Resort Northwest/Southwest 220 Warmington Solana Apartments Northwest/Southwest 204 The Mercer Northwest/Southwest 177 One60 Apartments Henderson 129 Red Rock Pointe Senior Living Northwest/Southwest 128 Evo Apartments Phase III Northwest/Southwest 120 4965 East Tropicana Avenue Henderson/GV 120 Donna Louise Apartments Northeast 96 Jardin Gardens Northeast 80 Cordero Pines Phase II Northeast 60 TOTAL 5,786 Historical Net Absorption vs. Completions 1,400 1,200 1,000 800 600 400 200 0-200 4 Q 2015 1 Q 2016 2 Q 2016 3 Q 2016 4 Q 2017 1 Q 2017 2 Q 2017 3 Q 2017 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 Net Absorption vs. Completions Net Absorption (Units) Completions (Units) Sales (Units) vs. Price Per Unit 4 Q 2010 1 Q 2011 2 Q 2011 3 Q 2011 4 Q 2011 1 Q 2012 2 Q 2012 3 Q 2012 4 Q 2012 1 Q 2013 2 Q 2013 3 Q 2013 4 Q 2013 1 Q 2014 2 Q 2014 3 Q 2014 4 Q 2014 1 Q 2015 2 Q 2015 3 Q 2015 4 Q 2015 1 Q 2016 2 Q 2016 3 Q 2016 4 Q 2017 1 Q 2017 2 Q 2017 3 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 Q4 2017 Multifamily Colliers International

Demographics Submarket Estimated Households (2017) Renter Occupied (2017) Median Household (2017) Average Household (2017) Proj. Annual Growth Rental Households (2017-2022) Downtown 50,800 59% $32,200 2.8 260 East Las Vegas 58,100 44% $42,900 2.7 320 Henderson/Green Valley 148,200 38% $63,800 2.6 790 North Las Vegas 107,600 32% $60,400 3.2 590 Northeast 50,300 49% $40,200 3.3 290 Northwest/Southwest 215,500 36% $66,000 2.6 1,270 University 36,600 77% $35,200 2.2 250 West Central 99,300 56% $45,800 2.4 610 TOTAL 743,000 43% $51,000 2.7 3,802 Source: Claritas The average asking rent for multifamily was $985 per unit in the third quarter of 2017, increasing by $7 psf from the second quarter of 2017, and by $35 per unit since the third quarter of 2016. This represents a slowing of rent growth from last quarter, perhaps an indication that competition between landlords is increasing. Class A properties saw asking rates increase by 3.5 percent year-over-year to $1,136 per unit, while Class B/C properties saw a 1.2 percent increase to $831 per unit. Unemployment in the Las Vegas-Paradise MSA stood at 5.0 percent as of October 2017, down from 5.5 percent in October 2016. From October 2016 to October 2017, total employment in Southern Nevada increased by 41,600 jobs, a 2.8 percent increase. The majority of the Valley s new jobs were in construction (10,500 jobs), professional and business services (6,100 jobs) and leisure and hospitality (5,600 jobs). Jobs were lost on a year-over-year basis in transportation and warehousing (1,700 jobs), retail (1,000 jobs), wholesale (900 jobs) and information (100 jobs). According to data provided by CBER and NVEnergy, electric meter hookups totaled 811,839 meters in October 2017, up 2.0 percent from one year ago and represent an increase of 15,631 meters. Population growth has been a major driver of Southern Nevada s economic growth since Las Vegas birth in 1905, so improvements in population growth are important for the region and the multifamily market in particular. Multifamily sales decreased in the third quarter of 2017 compared to the second quarter, with 3,747 units selling at an average price per unit of $126,052. This is more units than sold in the third quarter of 2016, and at a significantly higher average price per unit. The average sales price of a unit of multifamily has been generally on the rise since the third quarter of 2016. Initial estimates for third quarter 2017 sales show approximately 5,955 units sold at an average price per unit of $84,816. Among the institutional entities purchasing multifamily in Southern Nevada this year are Blackstone Group, Westland Real Estate Group, MG Properties Group, 3D Investments, Langdon Street Capital and Blackhawk Capital Group. Demand for multifamily appeared to peak in 2015, when net absorption averaged 825 units per quarter. Net absorption remained strong through the first three quarters of 2016, averaging 928 units, and then fell in the fourth quarter of that year. Net absorption over the past four quarters has now averaged only 258 units per quarter. This would not necessarily be a problem if completions of new multifamily units was not on the rise. Despite flagging demand, vacancy remains low for the present. Entry costs and monthly payments for single family homes remain higher than entry costs and monthly rent for multifamily, so demand for multifamily should rebound from current lows in 2018, but perhaps not without adjustments to asking rent. Sales Data 2013 2014 2015 2016 2017 YTD Units Sold 17,808 14,019 15,408 22,074 12,943 Average Price Per Unit $75,600 $73,627 $71,836 $96,720 $113,996 Cap Rate 5.7% 6.0% 7.3% 5.5% 5.8% 29 Las Vegas Research & Forecast Report Q4 2017 Multifamily Colliers International

215 NORTH LAS VEGAS Significant Multifamily Sales Activity Entrata di Paradiso Apartments 480 Units - $57,750,000 NORTHEAST $120,300/Unit November 2017 95 15 Year Built - 1989 DOWNTOWN Gloria Park Villas 240 Units - $30,000,000 $125,000/Unit November 2017 Year Built - 1993 WEST CENTRAL 95 EAST Oasis Meadows Apartments 383 Units - $38,270,000 $99,900/Unit September 2017 NORTHWEST/ SOUTHWEST UNIVERSITY Year Built - 1996 Tower at Tropicana 215 260 Units - $32,500,000 $125,000/Unit HENDERSON/ GREEN VALLEY November 2017 Year Built - 1990 The Greens at Green Valley 432 Units - $58,250,000 $134,800/Unit October 2017 Year Built - 1989 Sales Activity Continued Property Name Sale Date Units Price Price/Unit Year Built Saratoga Palms East Oct 2017 360 $28,354,000 $78,800 2002 Las Palmas Apartments Sep 2017 393 $26,800,000 $68,200 1974 Oasis Springs Sep 2017 304 $25,101,000 $82,600 1988 Tropicana Royale Sep 2017 324 $21,446,000 $66,200 1977 Oasis Ridge Apartments Sep 2017 477 $19,770,000 $41,400 1984 Source: Real Capital Analytics 30 Las Vegas Research & Forecast Report Q4 2017 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 1.9% 1.7% (6) (17) - - 226 3,731 - n/a $954 B/C 13,394 2.2% 1.4% (108) (85) - - - - 116 $49,698 $779 Total 16,167 2.2% 1.4% (114) (102) - - 226 3,731 116 $49,698 $809 EAST LAS VEGAS A 6,381 2.6% 2.2% (27) 24 - - - 358 - n/a $968 B/C 9,346 3.1% 2.4% (65) (54) - - - - 192 $81,250 $794 Total 15,727 2.9% 2.3% (92) (30) - - - 358 192 $81,250 $865 HENDERSON/GREEN VALLEY A 20,762 3.2% 2.6% 305 428 426 426 2,557 2,301 320 $167,500 $1,229 B/C 8,068 3.0% 3.1% 6 67 - - - - 237 $101,266 $1,021 Total 28,830 3.1% 2.8% 311 495 426 426 2,557 2,301 557 $139,318 $1,171 NORTH LAS VEGAS A 13,021 3.1% 2.6% (60) 3-111 251 671 - n/a $992 B/C 9,552 2.2% 1.8% (32) (25) - - - - 144 $50,000 $793 Total 22,573 2.7% 2.3% (92) (22) - 111 251 671 144 $50,000 $909 NORTHEAST A 2,172 4.5% 4.5% - (40) - - - 226 - n/a $843 B/C 6,643 3.3% 3.8% 36 58 - - - - 368 $38,723 $773 Total 8,815 3.6% 4.0% 36 18 - - - 226 368 $38,723 $789 NORTHWEST/SOUTHWEST A 19,035 4.6% 4.7% 15 1,015-1,088 2,445 1,952 1,124 $183,185 $1,306 B/C 5,452 1.4% 1.6% 10 (2) - - - - - n/a $1,124 Total 24,487 3.9% 4.0% 25 1,013-1,088 2,445 1,952 1,124 $183,185 $1,265 UNIVERSITY A 2,180 2.6% 1.8% (17) (13) - - 226 449 - n/a $1,003 B/C 12,321 4.5% 4.0% (55) (82) - - - - - n/a $748 Total 14,501 4.2% 3.7% (72) (95) - - 226 449 - n/a $786 WEST CENTRAL A 6,143 5.0% 4.6% (24) 8 - - 295 583 - n/a $1,032 B/C 6,860 1.8% 1.4% (28) (21) - - - - 1,246 $117,175 $783 Total 13,003 3.3% 2.9% (52) (13) - - 295 583 1,246 $117,175 $900 MARKET TOTAL A 72,467 3.6% 3.3% 186 1,408 426 1,625 6,000 10,271 1,444 $179,709 $1,136 B/C 71,636 2.8% 2.5% (236) (144) - - n/a n/a 2,303 $92,408 $831 Total 144,103 3.2% 2.9% (50) 1,264 426 1,625 6,000 10,271 3,747 $126,052 $985 QUARTERLY COMPARISON AND TOTALS Q3-17 144,103 3.2% 3.1% (50) 1,264 426 1,625 6,000 10,271 3,747 $126,052 $985 Q2-17 143,677 3.0% 3.1% 254 942-943 5,786 6,208 5,634 $106,085 $978 Q1-17 143,677 3.1% 3.0% 688 688 943 943 6,047 7,175 3,562 $113,829 $966 Q4-16 143,251 3.0% 2.9% 139 2,923 288 1,670 3,042 7,525 8,373 $94,773 $959 Q3-16 142,963 2.9% 2.8% 814 2,784 911 1,382 2,908 406 2,161 $77,603 $950 Q2-16 142,052 2.8% 3.1% 743 1,970 471 471 2,470 390 7,170 $113,859 $936 * Most recent quarter of data Source: REIS Sales Data provided by Colliers International 31 Las Vegas Research & Forecast Report Q4 2017 Multifamily Colliers International

Research & Forecast Report LAS VEGAS MEDICAL OFFICE Q4 2017 A Banner Year for Medical Office > > Southern Nevada s medical office market experienced significant recovery in 2017 > > Vacancy dropped to its lowest level in 4 years > > Higher demand pushed asking rental rates for medical office to $2.19 psf FSG Southern Nevada s medical office market experienced a banner year in 2017, posting the highest level of net absorption experienced by the market in five years, as well as the first significant expansion of inventory in five years. That the market experienced both its strongest demand and strongest new supply in five years is not an accident, as changing medical office needs and a lack of product to meet them appeared to hamper the market s recovery since the Great Recession. Vacancy was 14.1 percent at year s end, and the average asking rental rate was $2.19 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 Economic Indicators HEALTHCARE Employment +2.2% Market Indicators HEALTHCARE Spending -7.0 MEDICAL SF/Job +6.4% Q4 2017 Relative to prior period Q4 2017 Q1 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 Q4-16 Q3-17 Q4-17 Vacancy Rate 15.6% 14.9% 14.1% Asking Rent (PSF, NNN) $2.14 $2.24 $2.19 Net Absorption (SF) 47,040 149,492 61,903 New Completions (SF) 0 73,344 0 13.0% $2.05 Overall Asking Rents 12.0% 4 Q 2015 1 Q 2016 2 Q 2016 3 Q 2016 4 Q 2016 1 Q 2017 2 Q 2017 3 Q 2017 4 Q 2017 $2.00 Per Square Foot Class A $2.63 $2.70 $2.74 Class B $2.20 $2.18 $2.17 Vacancy Rate Rental Rate We think this trend (of recovery) will continue into 2018, provided the federal government does not get up to any significant hijinks and the national economy remains positive. Class C $1.79 $1.87 $1.85

strong in October 2017 (the latest month of data available) compared with October 2016. Ambulatory health care jobs, which have the largest impact on the medical office market, increased by 1,400 jobs year-over-year and hospital jobs increased by 500 jobs over the same period. Unemployment in the Las Vegas-Paradise MSA stood at 5.1 percent in October 2017, down from 5.5 percent in October 2016. From October 2016 to October 2017, total employment in Southern Nevada increased by 41,600 jobs, a 4.4 percent increase. Historical Net Absorption vs. Completions 250,000 200,000 150,000 100,000 The Nevada Department of Taxation reported that taxable spending on 50,000 ambulatory health care services in Clark County over the past twelve 0 months (October 2016 to September 2017, the most recent month of data available) totaled $86.8 million dollars, an 11.7 percent increase in spending over the previous twelve months. -50,000 4 Q 2015 1 Q 2016 2 Q 2016 Net Absorption 3 Q 2016 4 Q 2016 1 Q 2017 2 Q 2017 Completions 3 Q 2017 4 Q 2017 Southern Nevada expanded its medical office inventory in 2017 by 391,788 square feet, the first expansion of the local medical office inventory since 2015. Another 254,304 square feet of medical office space is under construction or planned to begin construction in the next twelve months. Healthcare Jobs vs. Occupancy Rate 90.0% 89.0% 17,200 17,000 Vacancy in medical office space decreased in 2017 to 14.1 percent, a decrease of 1.5 points from 2016. Medical office buildings completed over the last six months were heavily preleased, making these new 88.0% 87.0% 86.0% 85.0% 16,800 16,600 16,400 16,200 developments a major factor in the higher net absorption numbers and 84.0% 16,000 lower vacancy rate experienced in 2017. 83.0% 15,800 82.0% 15,600 The highest vacancy rates this quarter were in the Southwest (25.5 81.0% 15,400 percent), Airport (20.2 percent) and North Las Vegas (16.0 percent) submarkets. The lowest vacancy rates were in Downtown (8.4 80.0% 4 Q 2015 1 Q 2016 2 Q 2016 3 Q 2016 4 Q 2016 1 Q 2017 2 Q 2017 3 Q 2017 4 Q 2017 15,200 percent) and Northwest (9.2 percent). Vacancy was static in the Healthcare Jobs Occupancy Rate Airport submarket. Vacancy decreased in Downtown, North Las Vegas, Northwest, Southwest and West Central, with the largest decrease being in the Southwest submarket (6.8 points). Vacancy increased in East Las Vegas, Henderson In 2017 Southern Nevada absorbed 446,686 square feet of medical office space, the highest net absorption recorded since 2005 and a sign that a genuine recovery is finally taking place. Medical office developments completed this year have stimulated those net absorption numbers, contributing 63.9 percent of all net absorption recorded this year. The weighted average asking rental rate for medical office space in 2017 was $2.19 psf FSG. This was $0.05 higher than one year ago. Asking rates for medical office space are now at their highest level since 2012, when they were headed down to cope with lessened demand during the Great Recession. 33 Las Vegas Research & Forecast Report Q4 2017 Medical Office Colliers International

The lowest average asking rate for medical office space in 2017 was in the East Las Vegas submarket at $1.91 psf, followed by Airport ($1.92 psf) and Downtown ($1.94 psf). The Northwest submarket passed Henderson as the Valley s most expensive submarket for medical office, with an asking rate at $2.52 psf, followed by Henderson ($2.31 psf) and Southwest ($2.30 psf). The largest increase in the weighted average asking rate was in West Central, at $0.23 psf, due to the introduction of new recently constructed office space to the market rather than due to an increase in the asking rate in existing availabilities. The largest decrease was $0.06 psf in the East Las Vegas and Henderson submarkets. Investment sales volume of medical office in 2017 amounted to $115.4 million in 21 sales totaling 516,655 square feet with an average sales price of $223.29 psf. These buildings sold at an average cap rate of 7.0 percent. Investment sales in 2017 are comparable to 2014 in terms of sales volume and total square footage sold, though 2017 s cap rate and average sale size are both lower than in 2014. As with just about every other form of commercial real estate, the medical office market has been slogging through a transition brought upon not only by technological change, but also government regulation and legislation. Part of this transition involved the way that doctors structured their practices, with many opting to move away from singledoctor practices and towards medical groups. Changing existing medical office layouts to serve new concepts in medical proved challenging to landlords who had just weathered the Great Recession. In 2017, newly constructed medical office buildings stimulated demand for medical office space, and as a result Southern Nevada s medical office market experienced its strongest year in a decade. We think this trend will continue into 2018, provided the federal government does not get up to any significant hijinks and the national economy remains positive. Office Development Schedule PROJECT CLASS SUBMARKET SIZE PRE-LEASING Q2-2018 150,777 SF 17% Cimarron Courtyard 3 B Southwest 43,777 SF 57% Craig & Camino Al Norte C North Las Vegas 107,000 SF 0% Q3-2018 16,750 SF 0% The Gateway C Henderson 16,750 SF 0% 2018/2019 88,777 SF 0% 6060 S Fort Apache A Southwest 45,000 SF 0% Cimarron Courtyard 4 B Southwest 43,777 SF 0% Southern Nevada s medical office market experienced a banner year in 2017 Medical Office Investment Sales 2013 2014 2015 2016 2017 No. Sales 9 13 8 9 21 Square Footage 249,519 533,835 196,824 305,790 516,655 Sales Volume $37.2 MM $117.1 MM $41.3 MM $36.6 MM $115.4 MM Average Price/SF $149.15 $219.38 $209.92 $126.14 $223.29 Average Cap Rate n/a 7.5% 7.7% 6.8% 7.0% Average Sale Size (SF) 27,700 41,100 24,600 34,000 24,600 *Using the Consumer Price Index, All Urban Consumers, West Region, Class A Cities, 1982-1984 = 100 34 Las Vegas Research & Forecast Report Q4 2017 Medical Office Colliers International

215 NORTH LAS VEGAS Significant Medical Office Sales Activity The Parkway NORTHWEST 95 15 129,521 SF - $28,637,426 $221.00/SF October 2017 Class A Charleston Professional Center SUMMERLIN WEST CENTRAL DOWN TOWN EAST LAS VEGAS 45,450 SF - $13,507,400 $297.00/SF October 2017 Class B 2450 W Charleston Boulevard 35,000 SF - $9,000,000 95 $256.00/SF June 2017 Class B AIRPORT Quail Park V 215 47,000 SF - $5,100,000 $108.00/SF July 2017 SOUTHWEST HENDERSON Class C St Rose Dominican Medical Plaza 41,676 SF - $2,800,000 $67.00/SF October 2017 Class B Significant Lease Activity Property Name Lease Date Lease Term Size Lease Rate Tenant Type Del E Webb Medical Center Nov 2017 60 months 3,003 SF $1.67 NNN Physicians St Rose Dominican Medical Plaza Oct 2017 60 months 1,196 SF $1.44 NNN Physicians Tenaya Medical Building Sep 2017 120 months 35,500 SF $1.14 NNN Dialysis Adams Professional Park Jun 2017 36 months 1,500 SF $1.15 NNN Physicians Del E Webb Medical Center May 2017 39 months 1,400 SF $1.56 NNN Legal 35 Las Vegas Research & Forecast Report Q4 2017 Medical Office Colliers International

Market Comparisons - Las Vegas Medical Office 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 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% - 3,466 - - - - $1.94 C 86,997-0.0% - - 0.0% 0.0% - 13,976 - - - - $- Total 380,758 32,156 8.4% - 32,156 8.4% 8.4% - 17,442 - - - - $1.94 EAST LAS VEGAS SUBMARKET A - - n/a - - n/a n/a - - - - - - $- B 708,064 170,570 24.1% 5,060 175,630 24.8% 24.2% (4,523) (20,191) - - - - $2.06 C 626,007 29,486 4.7% - 29,486 4.7% 3.9% (5,262) 18,174 - - - - $1.07 Total 1,334,071 200,056 15.0% 5,060 205,116 15.4% 14.6% (9,785) (2,017) - - - - $1.91 HENDERSON SUBMARKET A 501,834 62,936 12.5% - 62,936 12.5% 15.0% 12,305 64,144-80,000 - - $3.02 B 361,179 100,039 27.7% - 100,039 27.7% 30.0% 8,474 25,845-27,000 - - $1.95 C 608,210 48,862 8.0% - 48,862 8.0% 3.8% -25,453 (16,163) - - - 14,750 $2.14 Total 1,471,223 211,837 14.4% - 211,837 14.4% 14.1% (4,674) 73,826-107,000-14,750 $2.31 NORTH LAS VEGAS SUBMARKET A - - n/a - - n/a n/a - - - - - - $- B 98,011 24,767 25.3% - 24,767 25.3% 25.3% - 38,034-54,090 - - $2.04 C 169,419 17,900 10.6% - 17,900 10.6% 10.6% - 13,625 - - - 107,000 $2.00 Total 267,430 42,667 16.0% - 42,667 16.0% 16.0% - 51,659-54,090-107,000 $2.02 NORTHWEST SUBMARKET A 888,183 110,135 12.4% 6,816 116,951 13.2% 20.6% 66,444 58,653-80,251 - - $2.62 B 1,068,389 80,860 7.6% - 80,860 7.6% 7.6% - 63,858-36,672 - - $2.44 C 202,434 7,998 4.0% - 7,998 4.0% 5.5% 3,132 4,332 - - - - $1.97 Total 2,159,006 198,993 9.2% 6,816 205,809 9.5% 12.8% 69,576 126,843-116,923 - - $2.52 SOUTHWEST SUBMARKET A 115,300 30,841 26.7% - 30,841 26.7% 26.1% (699) 13,303 - - - 45,000 $2.63 B 509,445 153,157 30.1% 4,440 157,597 30.9% 32.6% 8,549 89,889-71,053 43,777 43,777 $2.33 C 281,220 47,073 16.7% - 47,073 16.7% 18.1% 3,955 10,655-6,050 - - $1.98 Total 905,965 231,071 25.5% 4,440 235,511 26.0% 27.3% 11,805 113,847-77,103 43,777 88,777 $2.30 WEST CENTRAL SUBMARKET A - - n/a - - n/a n/a - - - - - - $- B 327,699 29,616 9.0% - 29,616 9.0% 11.0% 6,461 39,962-36,672 - - $2.42 C 872,926 138,651 15.9% - 138,651 15.9% 14.6% (11,480) 25,124 - - - - $1.85 Total 1,200,625 168,267 14.0% - 168,267 14.0% 13.6% (5,019) 65,086-36,672 - - $1.95 MARKET TOTAL A 1,570,317 203,912 13.0% 6,816 210,728 13.4% 18.4% 78,050 136,100-160,251-45,000 $2.74 B 3,301,548 591,165 17.9% 9,500 600,665 18.2% 18.8% 18,961 240,863-225,487 43,777 43,777 $2.17 C 2,885,213 297,660 10.3% - 297,660 10.3% 9.1% (35,108) 69,723-6,050-121,750 $1.85 Total 7,757,078 1,092,737 14.1% 16,316 1,109,053 14.3% 15.1% 61,903 446,686-391,788 43,777 210,527 $2.19 QUARTERLY COMPARISON AND TOTALS Q4-17 7,757,078 1,092,737 14.1% 16,316 1,109,053 14.3% 15.1% 61,903 446,686-391,788 43,777 210,527 $2.19 Q3-17 7,757,078 1,154,640 14.9% 16,316 1,170,956 15.1% 16.3% 149,492 384,783 73,344 391,788-254,304 $2.24 Q2-17 7,683,734 1,230,788 16.0% 20,274 1,251,062 16.3% 16.5% 208,252 235,291 232,394 318,444 73,344 547,100 $2.22 Q1-17 7,451,340 1,206,646 16.2% 20,562 1,227,208 16.5% 15.9% 27,039 27,039 86,050 86,050 107,251 238,000 $2.19 Q4-16 7,365,290 1,147,635 15.6% 23,077 1,170,712 15.9% 16.5% 47,040 80,808 - - 187,251 103,000 $2.14 Q3-16 7,365,290 1,194,675 16.2% 19,301 1,213,976 16.5% 17.3% 54,493 33,768 - - 107,251 80,000 $2.15 Q2-16 7,365,290 1,249,168 17.0% 23,007 1,272,175 17.3% 17.1% 1,095 (20,725) - - 80,251 107,000 $2.14 36 Las Vegas Research & Forecast Report Q4 2017 Medical Office Colliers International

Research & Forecast Report LAS VEGAS HOTEL Q4 2017 Aftermath > > Hospitality sales volume ended 2017 down > > Visitor volume continued to lag behind 2016 s record > > Room inventory growth remained light, with increased development expected in 2019 The trend of decreasing hospitality sales continued into the fourth quarter of 2017, with no sales occurring in the final quarter of the year. Sales of hospitality peaked in 2014 at 7,614 units sold that year, and have headed downward since, with 4,776 units trading in 2016. 2017 managed only 3,637 units sold. Over the past decade, big sales years have occurred in 2010 and 2014. That puts 2018 on schedule for another big year, provided investors can be convinced to play along. Visitor volume in the first ten months of 2017 was 35.7 million visitors, less than the 36.2 million visitors to Las Vegas in the first ten months of 2016. Gaming revenue, on the other hand, was slightly stronger in 2017 than 2016, with $8.37 billion taken in in the first ten months of 2017 compared to $8.08 billion in the first ten months of 2016. Economic Indicators AIR Passengers +1.4% Market Indicators Relative to prior period Q3 2017 Q4 2017* Room Inventory Room Occupancy Average Daily Rate Revenue Per Available Room CONVENTION Attendance +35.9 RevPAR -2.5% July 2017 *Projected Revenue Per Available Room (RevPAR) $130.00 $125.00 $120.00 $115.00 $110.00 $105.00 RevPAR Summary Statistics Las Vegas Market Q4 2016 Q3 2017 Q4 2017 Room Inventory 141,423 141,516 141,685 Room Occupancy 92.0% 90.8% 94.5% Average Daily Rate $122.95 $124.70 $125.97 Revenue Per Available Room $113.19 $113.19 $119.04 $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

The average daily room rate (ADR) and revenue per available room (RevPAR) were also up year-over-year. Room inventory had a small increase in 2017. Sales Volume $500,000,000 Sales Volume Gaming revenue in the first ten months of 2017 posted 3.7 percent yearover-year growth for Clark County as a whole, and 2.6 percent growth on the Las Vegas Strip in particular. The Downtown submarket had very strong 12.5 percent gaming revenue growth year-over-year and the Boulder Strip, which mostly plays host to local casino patrons, posted 3.8 percent gaming revenue growth. If these rates of growth continue through 2018, we will see a solid improvement in gaming revenue, the one hospitality factor that has lagged behind the others since the end of the recession. $450,000,000 $400,000,000 $350,000,000 $300,000,000 $250,000,000 $200,000,000 $150,000,000 $100,000,000 $50,000,000 $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 Room inventory increased slightly in the fourth quarter of 2017 with the completion of the 166-room TRUHotel by Hilton. Year-to-date completions stood at 449 units, negligible expansion for Southern Nevada s large hospitality market. Resorts World Las Vegas remained under construction, with completion of the first phase planned for 2019, along with Steve Wynn s 1,500-room Paradise Park project that will be constructed on the former site of the Desert Inn Golf Course. The recently purchased Fontainebleau Resort, on which construction halted during the Great Recession, has been relaunched as Project Blue, with permits pulled to renew construction. The Edge, an extreme sports resort is also proposed for the south Strip area. Several limited service hotels are now under construction or planned to begin construction in the Valley, including Heritage Inn, Homewood Suites, TownePlace Suites, Home2Suites and a Starwood hotel near the Las Vegas Speedway. After heavy non-gaming development in 2016, Southern Nevada is slated for a $75 million renovation of Caesars Palace s original Roman Tower, a $47 million renovation of the Thomas & Mack Center, a $130 million expansion of their convention space and the rebranding and renovation of the Monte Carlo Resort & Casino to the Park MGM & Sales vs. Price Per Unit 3,500 3,000 2,500 2,000 1,500 1,000 500 0 Sales vs. Price Per Unit 1 Q 2016 2 Q 2016 3 Q 2016 4 Q 2016 1 Q 2017 2 Q 2017 3 Q 2017 4 Q 2017 Sales (Units) Average Price Per Unit $2,100,000 $1,800,000 $1,500,000 $1,200,000 $900,000 $600,000 $300,000 $0 Market Health Data Point 2013 2014 2015 2016 2017* Visitor Volume (millions) 39.9 41.6 42.3 43.2 35.8 Room Occupancy 84.3% 86.8% 87.7% 89.1% 89.2% ADR $110.64 $116.48 $119.94 $125.90 $131.28 RevPAR $93.27 $101.05 $105.21 $112.28 $118.42 Convention Attendance (millions) 5.11 5.17 5.71 6.31 5.83 Passengers McCarran Int l (millions) 41.8 42.9 45.3 47.4 40.8 Gaming Revenue (Clark County; billions) $10.0 $9.6 $9.6 $9.7 $8.4 Gaming Revenue ( Strip ; billions) $6.5 $6.4 $7.5 $6.4 $5.4 Data from Las Vegas Convention & Visitors Authority * Data up to October 2017 38 Las Vegas Research & Forecast Report Q4 2017 Hospitality Colliers International

NoMad Las Vegas. Construction has finished on the NHL Vegas Golden Knight s practice facility in Summerlin, and there is activity on the site of the soon-to-be NFL Las Vegas Raiders new stadium. In all, we expect approximately $1.2 billion spent on hospitality development in 2017 and 2018, and an additional $11.3 billion of development in 2019 and beyond. Hospitality sales were down in 2017 compared to the past three years. A total of 3,637 rooms sold in 2017 at a total sales volume of $398.4 million and an average sales price of $110,000 per room. In June, the forthcoming sale of the Stratosphere and both Arizona Charlie s locations to Golden Entertainment was announced, and the SLS should trade in February 2018. The deal was reported to involve $781 million in cash and 4 million shares of Golden Entertainment stock to Whitehall Street Real Estate Partners 2007. Golden Entertainment already owns and operates casinos in Pahrump, NV. This should give 2018 hospitality sales a boost. In October of this year, a terrible tragedy occurred at the Mandalay Bay resort, resulting in the deaths of 58 people. From an economics standpoint, it is difficult to say how this event has impacted the hospitality industry in Southern Nevada, as November and December numbers have not yet been released by the LVCVA. Needless to say, the event has affected everyone in Southern Nevada, opening their eyes to the need for increased security measures in large resorts. We at Colliers International want to extend our deepest sympathies to those affected by this criminal act, and we pray for a safer, happier 2018. Hospitality Sales* Year Sales Volume Units Sold Price/Unit 2017 $398.4 MM 3,637 $110,000 2016 $1,182 MM 4,415 $268,000 2015 $466 MM 5,445 $86,000 2014 $2,001 MM 7,614 $263,000 2013 $61 MM 1,335 $46,000 2012 $160 MM 3,120 $51,000 2011 $3,005 MM 7,507 $400,000 2010 $858 MM 8,883 $97,000 * Only includes properties with 100 or more units, arm s-length sales 39 Las Vegas Research & Forecast Report Q4 2017 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 Fontainebleau Resort Casino Hotel - $600,000,000 3,889 Units - $154,000/Unit August 2017 SUMMERLIN WEST CENTRAL DOWNTOWN RESORT CORRIDOR EAST LAS VEGAS Casino Hotel - Strip Eastside Cannery Casino Hotel - $139,000,000 THE STRIP 95 307 Units - $453,000/Unit December 2016 Casino Hotel - East Vegas 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 Cannery Hotel & Casino Dec 2016 201 $91,000,000 $453,000 North Vegas Casino Hotel Marriott Springhill Jul 2017 299 $50,500,000 $169,000 Resort Corridor Full Service The Orleans Hotel Feb 2017 1,885 $43,000,000 $23,000 West Vegas Casino Hotel Embassy Suites Jul 2017 286 $31,100,000 $109,000 Resort Corridor Full Service Serene Vegas Jan 2017 150 $15,500,000 $103,000 Resort Corridor Full Service 40 Las Vegas Research & Forecast Report Q4 2017 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 - $0 n/a - 19 8,889 FS 5,450 - $0 n/a - - - LS 2,390 - $0 n/a 166 166 - Total 88,025 - $0 n/a 166 185 8,889 RESORT CORRIDOR CAS 11,436 - $0 n/a - - - FS 4,004 - $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 1,009 - $0 n/a - - - Total 1,009 - $0 n/a - - 640 EAST LAS VEGAS SUBMARKET CAS 1,703 - $0 n/a - - - FS - - $0 n/a - - - LS 3,058 - $0 n/a - - - Total 4,761 - $0 n/a - - - HENDERSON SUBMARKET CAS 2,035 - $0 n/a - - - FS 732 - $0 n/a - 51 - LS 1,465 - $0 n/a - - - Total 4,232 - $0 n/a - 51 - NORTH LAS VEGAS SUBMARKET CAS 987 - $0 n/a - 150 - FS - - $0 n/a - - - LS 1,343 - $0 n/a - 63 125 Total 2,330 - $0 n/a - 213 125 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 2,728 - $0 n/a - - 574 Total 6,271 - $0 n/a - - 574 MARKET TOTAL CAS 111,432 - $0 n/a - 169 9,529 FS 10,427 - $0 n/a - 51 211 LS 20,055 - $0 n/a 166 229 699 Total 141,914 - $0 n/a 166 449 10,439 QUARTERLY COMPARISON AND TOTALS Q4-17 141,914 - $0 n/a 229 449 10,439 Q3-17 141,685 746 $90,174,194 $120,877 0 220 10,105 Q2-17 141,685 194 $14,225,000 $73,325 169 220 5,670 Q1-17 141,685 2,697 $294,035,872 $109,023 51 51 5,670 Q4-16 141,634 1,072 $342,690,000 $319,674 42 166 5,521 Q3-16 141,592 202 $380,000,000 $1,881,188 124 124 6,137 Q2-16 141,468 334 $23,600,000 $70,659 0 0 4,167 Q1-16 141,468 3,168 $465,543,841 $146,952 0 0 4,925 41 Las Vegas Research & Forecast Report Q4 2017 Hospitality Colliers International

Research & Forecast Report LAS VEGAS LAND Q4 2017 Soft Land Market in 2017 > > Land sales in 2017 fell behind 2016 > > A lack of large sales at Apex brought the average price per square foot up > > Strong development of industrial and multifamily projects should continue through 2018 Southern Nevada s land market saw 267 sales in 2017, the fewest since 2012. A total of 2,135 acres were sold in 2017 with a sales volume of $595.6 million and an average price per square foot of $6.40. Sales volume was lower in 2017 than in 2016, and was the lowest land sales volume recorded since 2012, when the Valley was still coming out of the Great Recession. Land sales were boosted in 2016 by large sales in Apex, which also had the effect of decreasing the average price per square foot to $3.72. The BLM auction this year resulted in 63.75 acres sold for $15.4 million. The agency put 81.25 acres up for auction. 2016 aside, the general trend for land sales has been down since 2014. Numbers for 2017 were down in terms of the number of sales, the acreage sold and the sales volume. Only the average price per square foot increased in 2017 compared to 2014. Given the high level of commercial, residential and industrial construction in the Valley, it is likely that the market will rebound soon. Occupancy in industrial buildings increased to 95.4 percent in the fourth quarter of 2017 due to robust demand for the new industrial product entering the market and continued strong demand for existing properties. A total of 6.3 million square feet of industrial space was completed on 841 acres in 2017. An additional 9.1 million square feet of industrial space is either under construction or planned on 711 acres of land. In 2017, 817 acres of industrial land was sold with a total sales volume of $69.5 million. The average sales price of industrial land was $1.95 psf, a significant increase from 2016 due to the impact of those large parcel sales at Apex in 2016. Economic Indicators Market Indicators Relative to prior period Q4 2017 Q1 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 +42.1 Percent RESIDENTIAL Permits -2.3 Percent Land Sales Activity INDUSTRIAL Forward Supply -18.7 Percent $12.00 $11.00 $10.00 $9.00 $8.00 $7.00 $6.00 $5.00 Occupancy in commercial buildings increased in 2017 to 88.6 percent, 0.7 percentage points higher than in 2016. While the retail market continued to struggle with vacancies in large anchor spaces, the 400 200 0 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 $4.00 $3.00 $2.00 Acres Sold Price Per Square Foot