CoStar Office Statistics F i r s t Q u a r t e r 2 0 1 8
First Quarter 2018 Las Vegas Table of Contents Table of Contents................................................................. A Methodology...................................................................... B Terms & Definitions................................................................ C Market Highlights & Overview........................................................ 1 CoStar Markets.................................................................... 4 Inventory & Development Analysis..................................................... 5 Inventory & Development Analysis Select Top Under Construction Properties Select Top Deliveries Figures at a Glance................................................................. 8 Figures at a Glance by Class & Market Figures at a Glance Grouped by CBD vs Suburban Historical Figures at a Glance Leasing Activity Analysis............................................................ 12 Select Top Lease Transactions Sales Activity Analysis.............................................................. 14 Sales Activity Analysis Select Top Sales Transactions Analysis of Individual CoStar Submarket Clusters........................................ 16 Central East Las Vegas Market Central North Las Vegas Market Downtown Las Vegas Market North Las Vegas Market Northwest Las Vegas Market Outlying NE Clark County Market Outlying S Clark County Market SE Las Vegas/Henderson Market South Las Vegas Market Southwest Las Vegas Market West Las Vegas Market 2018 CoStar Group, Inc. CoStar Office Statistics A
Las Vegas First Quarter 2018 Methodology The CoStar Office Report, unless specifically stated otherwise, calculates office statistics using CoStar Group s entire database of existing and under construction office buildings in each metropolitan area. Included are office, office condominium, office loft, office medical, all classes and all sizes, and both multi-tenant and single-tenant buildings, including owner-occupied buildings. CoStar Group's global database includes approximately 119 billion square feet of coverage in 5.4 million properties. All rental rates reported in the CoStar Office Report have been converted to a Full Service equivalent rental rate. For information on subscribing to CoStar s other products and services, please contact us at 1-877-7COSTAR, or visit our web site at www.costar.com Copyright 2018 CoStar Group, Inc. All Rights Reserved. Although CoStar makes efforts to ensure the accuracy and reliability of the information contained herein, CoStar makes no guarantee, representation or warranty regarding the quality, accuracy, timeliness or completeness of the information. The publication is provided as is and CoStar expressly disclaims any guarantees, representations or warranties of any kind, including those of MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. CoStar Group, Inc. 1331 L ST NW Washington, DC 20005 (800) 204-5960 www.costar.com NASDAQ: CSGP B CoStar Office Statistics 2018 CoStar Group, Inc.
First Quarter 2018 Las Vegas Terms & Definitions Availability Rate: The ratio of available space to total rentable space, calculated by dividing the total available square feet by the total rentable square feet. Available Space: The total amount of space that is currently being marketed as available for lease in a given time period. It includes any space that is available, regardless of whether the space is vacant, occupied, available for sublease, or available at a future date. Build-to-Suit: A term describing a particular property, developed specifically for a certain tenant to occupy, with structural features, systems, or improvement work designed specifically for the needs of that tenant. A build-to-suit can be leased or owned by the tenant. In a leased build-to-suit, a tenant will usually have a long term lease on the space. Buyer: The individual, group, company, or entity that has purchased a commercial real estate asset. Cap Rate: Short for capitalization rate. The Cap Rate is a calculation that reflects the relationship between one year s net operating income and the current market value of a particular property. The Cap Rate is calculated by dividing the annual net operating income by the sales price (or asking sales price). CBD: Abbreviation for Central Business District. (See also: Central Business District) Central Business District: The designations of Central Business District (CBD) and Suburban refer to a particular geographic area within a metropolitan statistical area (MSA) describing the level of real estate development found there. The CBD is characterized by a high density, well organized core within the largest city of a given MSA. Class A: A classification used to describe buildings that generally qualify as extremely desirable investment-grade properties and command the highest rents or sale prices compared to other buildings in the same market. Such buildings are well located and provide efficient tenant layouts as well as high quality, and in some buildings, one-ofa-kind floor plans. They can be an architectural or historical landmark designed by prominent architects. These buildings contain a modern mechanical system, and have above-average maintenance and management as well as the best quality materials and workmanship in their trim and interior fittings. They are generally the most attractive and eagerly sought by investors willing to pay a premium for quality. Class B: A classification used to describe buildings that generally qualify as a more speculative investment, and as such, command lower rents or sale prices compared to Class A properties. Such buildings offer utilitarian space without special attractions, and have ordinary design, if new or fairly new; good to excellent design if an older non-landmark building. These buildings typically have average to good maintenance, management and tenants. They are less appealing to tenants than Class A properties, and may be deficient in a number of respects including floor plans, condition and facilities. They lack prestige and must depend chiefly on a lower price to attract tenants and investors. Class C: A classification used to describe buildings that generally qualify as no-frills, older buildings that offer basic space and command lower rents or sale prices compared to other buildings in the same market. Such buildings typically have below-average maintenance and management, and could have mixed or low tenant prestige, inferior elevators, and/or mechanical/electrical systems. These buildings lack prestige and must depend chiefly on a lower price to attract tenants and investors. Construction Starts: Buildings that began construction during a specific period of time. (See also: Deliveries) Contiguous Blocks of Space: Space within a building that is, or is able to be joined together into a single contiguous space. Deliveries: Buildings that complete construction during a specified period of time. In order for space to be considered delivered, a certificate of occupancy must have been issued for the property. Delivery Date: The date a building completes construction and receives a certificate of occupancy. Developer: The company, entity or individual that transforms raw land to improved property by use of labor, capital and entrepreneurial efforts. Direct Space: Space that is being offered for lease directly from the landlord or owner of a building, as opposed to space being offered in a building by another tenant (or broker of a tenant) trying to sublet a space that has already been leased. : The square footage of buildings that have received a certificate of occupancy and are able to be occupied by tenants. It does not include space in buildings that are either planned, under construction or under renovation. Flex Building: A type of building designed to be versatile, which may be used in combination with office (corporate headquarters), research and development, quasi-retail sales, and including but not limited to industrial, warehouse, and distribution uses. A typical flex building will be one or two stories with at least half of the rentable area being used as office space, have ceiling heights of 16 feet or less, and have some type of drive-in door, even though the door may be glassed in or sealed off. Full Service Rental Rate: Rental rates that include all operating expenses such as utilities, electricity, janitorial services, taxes and insurance. Gross Absorption: The total change in occupied space over a given period of time, counting space that is occupied but not space that is vacated by tenants. Gross absorption differs from leasing Activity, which is the sum of all space leased over a certain period of time. Unless otherwise noted Gross Absorption includes direct and sublease space. Growth in Inventory: The change in size of the existing square footage in a given area over a given period of time, generally due to the construction of new buildings. Industrial Building: A type of building adapted for such uses as the assemblage, processing, and/or manufacturing of products from raw materials or fabricated parts. Additional uses include warehousing, distribution, and maintenance facilities. The primary purpose of the space is for storing, producing, assembling, or distributing product. Landlord Rep: (Landlord Representative) In a typical lease transaction between an owner/landlord and tenant, the broker that represents the interests of the owner/landlord is referred to as the Landlord Rep. Leased Space: All the space that has a financial lease obligation. It includes all leased space, regardless of whether the space is currently occupied by a tenant. Leased space also includes space being offered for sublease. Leasing Activity: The volume of square footage that is committed to and signed under a lease obligation for a specific building or market in a given period of time. It includes direct leases, subleases and renewals of existing leases. It also includes any pre-leasing activity in planned, under construction, or under renovation buildings. Market: Geographic boundaries that serve to delineate core areas that are competitive with each other and constitute a generally accepted primary competitive set of areas. Markets are building-type specific, and are non-overlapping contiguous geographic designations having a cumulative sum that matches the boundaries of the entire Region (See also: Region). Markets can be further subdivided into Submarkets. (See also: Submarkets) Multi-Tenant: Buildings that house more than one tenant at a given time. Usually, multi-tenant buildings were designed and built to accommodate many different floor plans and designs for different 2018 CoStar Group, Inc. CoStar Office Statistics C
Las Vegas First Quarter 2018 tenant needs. (See also: Tenancy). Net Absorption: The net change in occupied space over a given period of time. Unless otherwise noted Net Absorption includes direct and sublease space. Net Rental Rate: A rental rate that excludes certain expenses that a tenant could incur in occupying office space. Such expenses are expected to be paid directly by the tenant and may include janitorial costs, electricity, utilities, taxes, insurance and other related costs. New Space: Sometimes called first generation space, refers to space that has never been occupied and/or leased by a tenant. Occupied Space: Space that is physically occupied by a tenant. It does not include leased space that is not currently occupied by a tenant. Office Building: A type of commercial building used exclusively or primarily for office use (business), as opposed to manufacturing, warehousing, or other uses. Office buildings may sometimes have other associated uses within part of the building, i.e., retail sales, financial, or restaurant, usually on the ground floor. Owner: The company, entity, or individual that holds title on a given building or property. Planned/Proposed: The status of a building that has been announced for future development but not yet started construction. Preleased Space: The amount of space in a building that has been leased prior to its construction completion date, or certificate of occupancy date. Price/SF: Calculated by dividing the price of a building (either sales price or asking sales price) by the Rentable Building Area (RBA). Property Manager: The company and/or person responsible for the day-to-day operations of a building, such as cleaning, trash removal, etc. The property manager also makes sure that the various systems within the building, such as the elevators, HVAC, and electrical systems, are functioning properly. Quoted Rental Rate: The asking rate per square foot for a particular building or unit of space by a broker or property owner. Quoted rental rates may differ from the actual rates paid by tenants following the negotiation of all terms and conditions in a specific lease. RBA: Abbreviation for Rentable Building Area. (See also: Rentable Building Area) Region: Core areas containing a large population nucleus, that together with adjacent communities have a high degree of economic and social integration. Regions are further divided into market areas, called Markets. (See also: Markets) Relet Space: Sometimes called second generation or direct space, refers to existing space that has previously been occupied by another tenant. Rentable Building Area: (RBA) The total square footage of a building that can be occupied by, or assigned to a tenant for the purpose of determining a tenant s rental obligation. Generally RBA includes a percentage of common areas including all hallways, main lobbies, bathrooms, and telephone closets. Rental Rates: The annual costs of occupancy for a particular space quoted on a per square foot basis. Sales Price: The total dollar amount paid for a particular property at a particular point in time. Sales Volume: The sum of sales prices for a given group of buildings in a given time period. Seller: The individual, group, company, or entity that sells a particular commercial real estate asset. SF: Abbreviation for Square Feet. Single-Tenant: Buildings that are occupied, or intended to be occupied by a single tenant. (See also: Build-to-suit and Tenancy) Sublease Space: Space that has been leased by a tenant and is being offered for lease back to the market by the tenant with the lease obligation. Sublease space is sometimes referred to as sublet space. Submarkets: Specific geographic boundaries that serve to delineate a core group of buildings that are competitive with each other and constitute a generally accepted primary competitive set, or peer group. Submarkets are building type specific (office, industrial, retail, etc.), with distinct boundaries dependent on different factors relevant to each building type. Submarkets are non-overlapping, contiguous geographic designations having a cumulative sum that matches the boundaries of the Market they are located within (See also: Market). Suburban: The Suburban and Central Business District (CBD) designations refer to a particular geographic area within a metropolitan statistical area (MSA). Suburban is defined as including all office inventory not located in the CBD. (See also: CBD) Tenancy: A term used to indicate whether or not a building is occupied by multiple tenants (See also: Multi-tenant) or a single tenant. (See also: Single-tenant) Tenant Rep: Tenant Rep stands for Tenant Representative. In a typical lease transaction between an owner/landlord and tenant, the broker that represents the interests of the tenant is referred to as a Tenant Rep. Time On Market: A measure of how long a currently available space has been marketed for lease, regardless of whether it is vacant or occupied. Under Construction: Buildings in a state of construction, up until they receive their certificate of occupancy. In order for CoStar to consider a building under construction, the site must have a concrete foundation in place. Abbreviated UC. Rate: A measurement expressed as a percentage of the total amount of physically vacant space divided by the total amount of existing inventory. Under construction space generally is not included in vacancy calculations. Vacant Space: Space that is not currently occupied by a tenant, regardless of any lease obligation that may be on the space. Vacant space could be space that is either available or not available. For example, sublease space that is currently being paid for by a tenant but not occupied by that tenant, would be considered vacant space. Likewise, space that has been leased but not yet occupied because of finish work being done, would also be considered vacant space. Weighted Average Rental Rate: Rental rates that are calculated by factoring in, or weighting, the square footage associated with each particular rental rate. This has the effect of causing rental rates on larger spaces to affect the average more than that of smaller spaces. The weighted average rental rate is calculated by taking the ratio of the square footage associated with the rental rate on each individual available space to the square footage associated with rental rates on all available spaces, multiplying the rental rate by that ratio, and then adding together all the resulting numbers. Unless specifically specified otherwise, rental rate averages include both Direct and Sublet available spaces. Year Built: The year in which a building completed construction and was issued a certificate of occupancy. YTD: Abbreviation for Year-to-Date. Describes statistics that are cumulative from the beginning of a calendar year through whatever time period is being studied. D CoStar Office Statistics 2018 CoStar Group, Inc.
Overview First Quarter 2018 Las Vegas Las Vegas s Decreases to 12.5% Net Absorption Positive 474,438 SF in the Quarter The Las Vegas Office market ended the first quarter 2018 with a vacancy rate of 12.5%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 474,438 square feet in the first quarter. Vacant sublease space increased in the quarter, ending the quarter at 315,188 square feet. Rental rates ended the first quarter at $19.56, an increase over the previous quarter. A total of four buildings delivered to the market in the quarter totaling 266,506 square feet, with 403,977 square feet still under construction at the end of the quarter. Absorption Net absorption for the overall Las Vegas office market was positive 474,438 square feet in the first quarter 2018. That compares to positive 789,440 square feet in the fourth quarter 2017, positive 262,070 square feet in the third quarter 2017, and positive 264,463 square feet in the second quarter 2017. Tenants moving into large blocks of space in 2018 include: Doolittle Institute moving into 26,170 square feet at 3773 Howard Hughes Pky; SamSim LLC moving into 25,088 square feet at Corporate Gateway I; and Future Property Limited moving into 24,868 square feet at 2960 W Sahara Ave. The Class-A office market recorded net absorption of positive 339,646 square feet in the first quarter 2018, compared to positive 35,164 square feet in the fourth quarter 2017, positive 152,901 in the third quarter 2017, and positive 68,425 in the second quarter 2017. The Class-B office market recorded net absorption of positive 138,534 square feet in the first quarter 2018, compared to positive 654,448 square feet in the fourth quarter 2017, positive 99,102 in the third quarter 2017, and positive 155,699 in the second quarter 2017. The Class-C office market recorded net absorption of negative (3,742) square feet in the first quarter 2018 compared to positive 99,828 square feet in the fourth quarter 2017, positive 10,067 in the third quarter 2017, and positive 40,339 in the second quarter 2017. Net absorption for Las Vegas s central business district was positive 56,708 square feet in the first quarter 2018. That compares to negative (7,176) square feet in the fourth quarter 2017, negative (34,356) in the third quarter 2017, and positive 3,063 in the second quarter 2017. Net absorption for the suburban markets was positive 417,730 square feet in the first quarter 2018. That compares to positive 796,616 square feet in fourth quarter 2017, positive 296,426 in the third quarter 2017, and positive 261,400 in the second quarter 2017. The office vacancy rate in the Las Vegas market area decreased to 12.5% at the end of the first quarter 2018. The vacancy rate was 12.9% at the end of the fourth quarter 2017, 14.0% at the end of the third quarter 2017, and 14.3% at the end of the second quarter 2017. Class-A projects reported a vacancy rate of 12.7% at the end of the first quarter 2018, 14.5% at the end of the fourth quarter 2017, 14.6% at the end of the third quarter 2017, and 15.9% at the end of the second quarter 2017. Class-B projects reported a vacancy rate of 13.3% at the end of the first quarter 2018, 13.4% at the end of the fourth Rates by Class 2005-2018 A B C Total Market 25% 20% Rate 15% 10% 5% 0% 2005 3q 2006 3q 2007 3q 2008 3q 2009 3q 2010 3q 2011 3q 2012 3q 2013 3q 2014 3q 2015 3q 2016 3q 2017 3q 2018 CoStar Group, Inc. CoStar Office Statistics 1
Las Vegas First Quarter 2018 Overview quarter 2017, 14.7% at the end of the third quarter 2017, and 14.9% at the end of the second quarter 2017. Class-C projects reported a vacancy rate of 8.3% at the end of the first quarter 2018, 8.3% at the end of fourth quarter 2017, 9.4% at the end of the third quarter 2017, and 9.5% at the end of the second quarter 2017. The overall vacancy rate in Las Vegas s central business district at the end of the first quarter 2018 decreased to 8.0%. The vacancy rate was 9.1% at the end of the fourth quarter 2017, 9.0% at the end of the third quarter 2017, and 8.3% at the end of the second quarter 2017. The vacancy rate in the suburban markets decreased to 12.9% in the first quarter 2018. The vacancy rate was 13.2% at the end of the fourth quarter 2017, 14.4% at the end of the third quarter 2017, and 14.9% at the end of the second quarter 2017. Largest Lease Signings The largest lease signings occurring in 2018 included: the 20,000-square-foot lease signed by Mk Fluidic Systems, Llc at 10050 Banburry Cross Dr in the Northwest Las Vegas market; the 16,385-square-foot deal signed by Greenberg Traurig at Two Summerlin in the West Las Vegas market; and the 15,059- square-foot lease signed by The Howard Hughes Corporation at Two Summerlin in the West Las Vegas market. Sublease The amount of vacant sublease space in the Las Vegas market increased to 315,188 square feet by the end of the first quarter 2018, from 304,407 square feet at the end of the fourth quarter 2017. There was 368,126 square feet vacant at the end of the third quarter 2017 and 276,500 square feet at the end of the second quarter 2017. Las Vegas s Class-A projects reported vacant sublease space of 64,089 square feet at the end of first quarter 2018, down from the 76,943 square feet reported at the end of the U.S. Comparison Past 7 Quarters Rate 18.0% 16.0% 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% Las Vegas United States 2016 3q fourth quarter 2017. There were 87,295 square feet of sublease space vacant at the end of the third quarter 2017, and 90,998 square feet at the end of the second quarter 2017. Class-B projects reported vacant sublease space of 250,099 square feet at the end of the first quarter 2018, up from the 226,464 square feet reported at the end of the fourth quarter 2017. At the end of the third quarter 2017 there were 274,607 square feet, and at the end of the second quarter 2017 there were 179,278 square feet vacant. Class-C projects reported no vacant sublease space from the fourth quarter 2017 to the first quarter 2018. Sublease vacancy went from 1,000 square feet to 1,000 square feet during that time. There was 6,224 square feet at the end of the third quarter 2017, and 6,224 square feet at the end of the second quarter 2017. Sublease vacancy in Las Vegas s central business district stood at 4,678 square feet at the end of the first quarter 2018. It was 4,678 square feet at the end of the fourth quarter 2017, 4,678 square feet at the end of the third quarter 2017, and 2,325 square feet at the end of the second quarter 2017. Sublease vacancy in the suburban markets ended the first quarter 2018 at 310,510 square feet. At the end of the fourth quarter 2017 sublease vacancy was 299,729 square feet, was 363,448 square feet at the end of the third quarter 2017, and was 274,175 square feet at the end of the second quarter 2017. Rental Rates The average quoted asking rental rate for available office space, all classes, was $19.56 per square foot per year at the end of the first quarter 2018 in the Las Vegas market area. This represented a 1.0% increase in quoted rental rates from the end of the fourth quarter 2017, when rents were reported at $19.37 per square foot. The average quoted rate within the Class-A sector was $27.91 at the end of the first quarter 2018, while Class-B rates stood at $17.80, and Class-C rates at $12.77. At the end of the fourth quarter 2017, Class-A rates were $27.23 per square foot, Class-B rates were $17.77, and Class-C rates were $13.93. The average quoted asking rental rate in Las Vegas s CBD was $26.24 at the end of the first quarter 2018, and $19.15 in the suburban markets. In the fourth quarter 2017, quoted rates were $26.45 in the CBD and $18.85 in the suburbs. Deliveries and Construction During the first quarter 2018, four buildings totaling 266,506 square feet were completed in the Las Vegas market area. This compares to five buildings totaling 97,285 square feet that were completed in the fourth quarter 2017, three buildings totaling 32,162 square feet completed in the third quarter 2017, and 127,258 square feet in six buildings completed in the second quarter 2017. 2 CoStar Office Statistics 2018 CoStar Group, Inc.
Overview First Quarter 2018 Las Vegas There were 403,977 square feet of office space under construction at the end of the first quarter 2018. Some of the notable 2018 deliveries include: Credit One, a 152,000-square-foot facility that delivered in first quarter 2018 and is now 100% occupied, and St Rose Coronado - Bldg 1- St. Rose Corporate, a 60,000-square-foot building that delivered in first quarter 2018 and is now 100% occupied. The largest projects underway at the end of first quarter 2018 were Two Summerlin, a 144,574-square-foot building with 36% of its space pre-leased, and 10200 W Flamingo Rd, a 75,000-square-foot facility that is 100% pre-leased. Inventory Total office inventory in the Las Vegas market area amounted to 64,760,917 square feet in 4,024 buildings as of the end of the first quarter 2018. The Class-A office sector consisted of 11,679,970 square feet in 100 projects. There were 2,358 Class-B buildings totaling 44,345,917 square feet, and the Class-C sector consisted of 8,735,030 square feet in 1,566 buildings. Within the Office market there were 164 owneroccupied buildings accounting for 4,945,356 square feet of office space. Sales Activity Tallying office building sales of 15,000 square feet or larger, Las Vegas office sales figures rose during the fourth quarter 2017 in terms of dollar volume compared to the third quarter of 2017. In the fourth quarter, 16 office transactions closed with a total volume of $181,189,187. The 16 buildings totaled 895,798 square feet and the average price per square foot equated to $202.27 per square foot. That compares to 17 transactions Absorption & Deliveries Past 7 Quarters 0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0.0 0.07 0.02 Net Absorption 0.43 0.44 0.24 0.26 0.26 0.13 Deliveries 0.03 0.79 totaling $171,400,000 in the third quarter 2017. The total square footage in the third quarter was 955,515 square feet for an average price per square foot of $179.38. Total office building sales activity in 2017 was up compared to 2016. In the twelve months of 2017, the market saw 68 office sales transactions with a total volume of $619,607,637. The price per square foot averaged $186.34. In the same twelve months of 2016, the market posted 41 transactions with a total volume of $396,649,690. The price per square foot averaged $174.03. Cap rates have been lower in 2017, averaging 7.41% compared to the same period in 2016 when they averaged 7.82%. Reports compiled by: Brian Lasky, CoStar Research Manager 0.10 0.47 0.27 2016 3q 2018 CoStar Group, Inc. CoStar Office Statistics 3
Las Vegas First Quarter 2018 Markets CoStar Submarkets In analyzing metropolitan areas, CoStar has developed geographic designations to help group properties together, called Markets, Submarket Clusters and Submarkets. Markets are the equivalent of metropolitan areas, or areas containing a large population nucleus, that together with adjacent communities have a high degree of economic and social integration. Markets are then divided into Submarket Clusters, which are core areas within a metropolitan area that are known to be competitive with each other in terms of attracting and keeping tenants. Markets are then further subdivided into smaller units called Submarkets, which serve to delineate a core group of buildings that are competitive with each other and constitute a generally accepted competitive set, or peer group. Submarket Clusters Central East Las Vegas Central North Las Vegas Downtown Las Vegas* North Las Vegas Northwest Las Vegas Outlying NE Clark County Outlying S Clark County SE Las Vegas/Henderson South Las Vegas Southwest Las Vegas West Las Vegas * Submarkets comprising the CBD. For statistics reference the CBD vs Suburban Figures at a Glance Page. 4 CoStar Office Statistics 2018 CoStar Group, Inc.
Inventory & development First Quarter 2018 Las Vegas Historical Deliveries 1982-2018 5.0 4.5 Deliveries Average Delivered SF 4.4 Millions of SF 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 3.4 2.9 3.1 2.9 3.0 3.1 2.6 1.9 2.0 2.0 1.8 1.5 1.4 1.2 0.9 1.1 0.9 1.1 1.2 1.0 1.0 0.6 0.7 0.5 0.5 0.6 0.6 0.6 0.5 0.6 0.4 0.3 0.4 0.2 0.3 0.1 1982 1986 1990 1994 1998 2002 2006 2010 2014 2018 * Future deliveries based on current under construction buildings. Construction Activity Markets Ranked by Under Construction Square Footage Under Construction Inventory Average Bldg Size Market # Bldgs Total RBA Preleased SF Preleased % All Existing U/C West Las Vegas 2 151,239 58,712 38.8% 14,409 75,619 Southwest Las Vegas 3 137,646 120,143 87.3% 20,149 45,882 Central East Las Vegas 1 61,146 46,471 76.0% 14,117 61,146 SE Las Vegas/Henderson 1 44,000 44,000 100.0% 12,546 44,000 South Las Vegas 2 9,946 2,779 27.9% 16,631 4,973 Downtown Las Vegas 0 0 0 0.0% 16,417 0 Outlying NE Clark County 0 0 0 0.0% 6,670 0 Outlying S Clark County 0 0 0 0.0% 6,519 0 North Las Vegas 0 0 0 0.0% 11,889 0 Northwest Las Vegas 0 0 0 0.0% 18,612 0 All Other 0 0 0 0.0% 16,702 0 Totals 9 403,977 272,105 67.4% 16,094 44,886 Recent Deliveries Leased & Un-Leased SF in Deliveries Since 2014 Future Deliveries Preleased & Un-Leased SF in Properties Scheduled to Deliver 0.6 Leased Un-Leased 160 Preleased Un-Leased 0.5 140 120 Millions of SF 0.4 0.3 0.2 Thousands of SF 100 80 60 T 40 0.1 20 0.0 2014 2016 2018 0 2018 2q 2018 4q 2018 CoStar Group, Inc. CoStar Office Statistics 5
Las Vegas First Quarter 2018 Inventory & development Historical Construction Starts & Deliveries Square Footage Per Quarter Starting and Completing Construction 0.3 0.3 0.2 0.27 Construction Starts 0.22 0.16 0.16 0.20 0.24 Deliveries 0.19 0.27 Millions of SF 0.2 0.1 0.1 0.0 0.12 0.07 0.02 0.01 0.01 0.04 0.13 0.02 0.11 0.02 0.13 0.03 0.10 0.03 (0.1) (0.05) (0.1) 2015 1q 2016 1q 2017 1q 2018 1q Recent Deliveries by Project Size Breakdown of Year-to-Date Development Based on RBA of Project Building Size # Bldgs RBA SF Leased % Leased Avg Rate Single-Tenant Multi-Tenant < 50,000 SF 2 54,506 53,186 97.6% $ 0 54,506 50,000 SF - 99,999 SF 1 60,000 60,000 100.0% $24.00 0 60,000 100,000 SF - 249,999 SF 1 152,000 152,000 100.0% $ 0 152,000 250,000 SF - 499,999 SF 0 0 0 0.0% $ 0 0 >= 500,000 SF 0 0 0 0.0% $ 0 0 Recent Development by Tenancy Comparison Based on RBA Developed for Single & Multi Tenant Use Based on Total RBA 2018 Deliveries Currently Under Construction By Class By Space Type 0% 3% 13% 19% 18% 100% 97% 69% 81% Multi Single Multi Single Class A Class B Class C Multi Single 6 CoStar Office Statistics 2018 CoStar Group, Inc.
Inventory & development First Quarter 2018 Las Vegas 2018 CoStar Group, Inc. CoStar Office Statistics 7
Las Vegas First Quarter 2018 Figures at a Glance Class A Market Statistics First Quarter 2018 YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Central East Las Vegas 7 1,315,158 295,598 295,598 22.5% (51,773) 0 0 $30.11 Central North Las Vegas 2 273,958 12,620 12,620 4.6% 300 0 0 $27.00 Downtown Las Vegas 10 1,791,889 210,109 212,434 11.9% 39,305 0 0 $31.61 North Las Vegas 0 0 0 0 0.0% 0 0 0 $ Northwest Las Vegas 19 2,076,169 450,033 450,033 21.7% 34,932 0 0 $24.47 Outlying NE Clark County 0 0 0 0 0.0% 0 0 0 $ Outlying S Clark County 0 0 0 0 0.0% 0 0 0 $ SE Las Vegas/Henderson 3 296,443 146,140 146,140 49.3% 0 0 0 $25.65 South Las Vegas 24 1,788,936 111,064 130,894 7.3% 10,579 0 0 $27.05 Southwest Las Vegas 28 3,453,601 81,644 123,578 3.6% 313,292 152,000 75,000 $22.81 West Las Vegas 7 683,816 110,099 110,099 16.1% (6,989) 0 144,574 $37.43 Totals 100 11,679,970 1,417,307 1,481,396 12.7% 339,646 152,000 219,574 $27.91 Class B Market Statistics First Quarter 2018 YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Central East Las Vegas 178 5,191,505 1,002,398 1,020,944 19.7% 94,054 0 61,146 $18.37 Central North Las Vegas 49 1,422,806 93,299 93,299 6.6% (2,946) 0 0 $20.84 Downtown Las Vegas 65 2,634,847 112,243 114,596 4.3% 12,255 0 0 $23.01 North Las Vegas 151 2,050,007 260,114 260,114 12.7% 18,422 0 0 $14.26 Northwest Las Vegas 358 7,310,299 1,023,329 1,031,888 14.1% (175,304) 0 0 $17.46 Outlying NE Clark County 32 261,028 64,209 64,209 24.6% (3,000) 0 0 $11.33 Outlying S Clark County 4 44,287 0 0 0.0% 0 0 0 $ SE Las Vegas/Henderson 83 1,190,510 197,922 197,922 16.6% 9,848 0 44,000 $14.16 South Las Vegas 532 9,777,261 1,281,961 1,297,746 13.3% (33,822) 60,000 9,946 $17.79 Southwest Las Vegas 508 8,033,872 917,120 930,802 11.6% 135,409 54,506 62,646 $19.77 West Las Vegas 398 6,429,495 690,139 881,313 13.7% 83,618 0 6,665 $14.92 Totals 2,358 44,345,917 5,642,734 5,892,833 13.3% 138,534 114,506 184,403 $17.80 8 CoStar Office Statistics 2018 CoStar Group, Inc.
Figures at a Glance First Quarter 2018 Las Vegas Class C Market Statistics First Quarter 2018 YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Central East Las Vegas 473 2,782,557 354,155 354,155 12.7% (48,283) 0 0 $11.31 Central North Las Vegas 90 658,242 34,749 34,749 5.3% 3,943 0 0 $15.84 Downtown Las Vegas 251 925,092 103,001 103,001 11.1% 5,148 0 0 $17.26 North Las Vegas 59 446,718 67,855 67,855 15.2% (19,234) 0 0 $15.02 Northwest Las Vegas 177 924,421 24,441 25,441 2.8% (9,707) 0 0 $14.04 Outlying NE Clark County 19 79,135 6,853 6,853 8.7% 0 0 0 $11.64 Outlying S Clark County 20 112,158 0 0 0.0% 0 0 0 $13.80 SE Las Vegas/Henderson 72 495,307 32,814 32,814 6.6% 18,294 0 0 $10.89 South Las Vegas 208 1,139,817 36,157 36,157 3.2% 33,008 0 0 $12.61 Southwest Las Vegas 52 360,197 11,426 11,426 3.2% 4,238 0 0 $21.19 West Las Vegas 145 811,386 52,899 52,899 6.5% 8,851 0 0 $12.10 Totals 1,566 8,735,030 724,350 725,350 8.3% (3,742) 0 0 $12.77 Total Office Market Statistics First Quarter 2018 YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Central East Las Vegas 658 9,289,220 1,652,151 1,670,697 18.0% (6,002) 0 61,146 $20.02 Central North Las Vegas 141 2,355,006 140,668 140,668 6.0% 1,297 0 0 $20.80 Downtown Las Vegas 326 5,351,828 425,353 430,031 8.0% 56,708 0 0 $26.24 North Las Vegas 210 2,496,725 327,969 327,969 13.1% (812) 0 0 $14.29 Northwest Las Vegas 554 10,310,889 1,497,803 1,507,362 14.6% (150,079) 0 0 $19.24 Outlying NE Clark County 51 340,163 71,062 71,062 20.9% (3,000) 0 0 $11.46 Outlying S Clark County 24 156,445 0 0 0.0% 0 0 0 $13.80 SE Las Vegas/Henderson 158 1,982,260 376,876 376,876 19.0% 28,142 0 44,000 $18.18 South Las Vegas 764 12,706,014 1,429,182 1,464,797 11.5% 9,765 60,000 9,946 $18.57 Southwest Las Vegas 588 11,847,670 1,010,190 1,065,806 9.0% 452,939 206,506 137,646 $20.24 West Las Vegas 550 7,924,697 853,137 1,044,311 13.2% 85,480 0 151,239 $18.70 Totals 4,024 64,760,917 7,784,391 8,099,579 12.5% 474,438 266,506 403,977 $19.56 2018 CoStar Group, Inc. CoStar Office Statistics 9
Las Vegas First Quarter 2018 Figures at a Glance Class A Market Statistics First Quarter 2018 YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates CBD 10 1,791,889 210,109 212,434 11.9% 39,305 0 0 $31.61 Suburban 90 9,888,081 1,207,198 1,268,962 12.8% 300,341 152,000 219,574 $27.32 Totals 100 11,679,970 1,417,307 1,481,396 12.7% 339,646 152,000 219,574 $27.91 Class B Market Statistics First Quarter 2018 YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates CBD 65 2,634,847 112,243 114,596 4.3% 12,255 0 0 $23.01 Suburban 2,293 41,711,070 5,530,491 5,778,237 13.9% 126,279 114,506 184,403 $17.66 Totals 2,358 44,345,917 5,642,734 5,892,833 13.3% 138,534 114,506 184,403 $17.80 Class C Market Statistics First Quarter 2018 YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates CBD 251 925,092 103,001 103,001 11.1% 5,148 0 0 $17.26 Suburban 1,315 7,809,938 621,349 622,349 8.0% (8,890) 0 0 $12.05 Totals 1,566 8,735,030 724,350 725,350 8.3% (3,742) 0 0 $12.77 Class A & B Market Statistics First Quarter 2018 YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates CBD 75 4,426,736 322,352 327,030 7.4% 51,560 0 0 $28.16 Suburban 2,383 51,599,151 6,737,689 7,047,199 13.7% 426,620 266,506 403,977 $19.67 Totals 2,458 56,025,887 7,060,041 7,374,229 13.2% 478,180 266,506 403,977 $20.11 Total Office Market Statistics First Quarter 2018 YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates CBD 326 5,351,828 425,353 430,031 8.0% 56,708 0 0 $26.24 Suburban 3,698 59,409,089 7,359,038 7,669,548 12.9% 417,730 266,506 403,977 $19.15 Totals 4,024 64,760,917 7,784,391 8,099,579 12.5% 474,438 266,506 403,977 $19.56 10 CoStar Office Statistics 2018 CoStar Group, Inc.
Figures at a Glance First Quarter 2018 Las Vegas 2018 CoStar Group, Inc. CoStar Office Statistics 11
Las Vegas First Quarter 2018 Leasing Activity Historical Rental Rates Based on Full-Service Equivalent Rental Rates A B C Total Market $35.00 $3 $25.00 $2 $15.00 $1 $5.00 $ 2005 3q 2007 3q 2009 3q 2011 3q 2013 3q 2015 3q 2017 3q by Available Space Type by Class Percent of All Vacant Space in Direct vs. Sublet Percent of All Vacant Space by Class Las Vegas United States Las Vegas United States 4% 6% 9% 12% 18% 46% 73% 42% 96% 94% Direct Sublet Direct Sublet Class A Class B Class C Class A Class B Class C U.S. Rental Rate Comparison Based on Full-Service Equivalent Rental Rates Future Space Available Space Scheduled to be Available for Occupancy* $3 Las Vegas United States 0.1 0.13 0.12 $25.00 0.1 $2 $15.00 $1 0.1 0.1 0.1 0.0 0.08 $5.00 $ 2016 3q 2017 3q 0.0 0.0 2018 2q 2018 4q 2019 2q * Includes Under Construction Spaces 12 CoStar Office Statistics 2018 CoStar Group, Inc.
Leasing Activity First Quarter 2018 Las Vegas Select Top O ce Leases Based on Leased Square Footage For Deals Signed in 2018 Building Submarket SF Qtr Tenant Name Tenant Rep Company Landlord Rep Company 1 Tivoli Village at Queensridge - Building 5 Northwest Las Vegas 24,296 1st N/A N/A CBRE 2 10050 Banburry Cross Dr Northwest Las Vegas 20,000 1st Mk Fluidic Systems, Llc N/A Kloehn Holdings, LLC 3 St Rose Coronado - Bldg 1- St. Rose Corporate South Las Vegas 20,000 1st N/A N/A Sansone Development 4 St Rose Coronado - Bldg 1- St. Rose Corporate South Las Vegas 20,000 1st N/A N/A Sansone Development 5 St Rose Coronado - Bldg 1- St. Rose Corporate South Las Vegas 20,000 1st N/A N/A Sansone Development 6 Two Summerlin West Las Vegas 16,385 1st Greenberg Traurig N/A CBRE 7 Two Summerlin West Las Vegas 15,059 1st The Howard Hughes Corporation N/A CBRE 8 Eastern Canyon O ce Plaza - Unit 100 South Las Vegas 15,000 1st Survey Sampling International N/A Diamond Creek Holdings 9 St. Rose Dominican Medical Plaza SE Las Vegas/Henderson 14,290 1st N/A N/A Keller Williams Realty Las Vegas 10 2965 S Jones Blvd West Las Vegas 12,908 1st MVP REIT N/A Great Bridge Properties 11 Holsum Lofts Central East Las Vegas 12,890 1st NS8 Inc. Logic Commercial Real Estate LaPour Partners 12 The Canyons at Summerlin Northwest Las Vegas 7,734 1st N/A N/A CBRE 13 SK+G Spanish Ridge Southwest Las Vegas 7,655 1st N/A N/A CBRE 14 7710 W Sahara Ave West Las Vegas 7,040 1st N/A N/A Moonbeam Leasing and Management 15 4530 S Eastern Ave Central East Las Vegas 6,644 1st N/A N/A Sky Mesa Capital/Realty 16 3571 E Sunset Rd South Las Vegas 6,500 1st N/A N/A REMAX Advantage 17 500 Corporate Center Northwest Las Vegas 6,490 1st N/A N/A Real Capital Corporation 18 3773 Howard Hughes Pky Central East Las Vegas 6,395 1st N/A N/A CBRE 19 Centra Point - Bldg 7 Southwest Las Vegas 6,265 1st N/A N/A Cushman & Wake eld 20 6375 S Pecos Rd South Las Vegas 6,008 1st N/A N/A Harsch Investment Properties 21 800 E Charleston Blvd Central East Las Vegas 5,800 1st Embracing Project Direct Deal First Real Estate Companies 22 Tarkanian Professional Center - Bldg 2 Southwest Las Vegas 5,553 1st Las Vegas Bariatrics N/A Avison Young 23 2810 W Charleston Blvd Northwest Las Vegas 5,401 1st N/A N/A The Ribeiro Companies 24 Flamingo Grand Plaza Central East Las Vegas 5,352 1st N/A N/A Colliers International 25 6375 S Pecos Rd South Las Vegas 5,301 1st N/A N/A Harsch Investment Properties 26 3909 S Maryland Pky Central East Las Vegas 5,270 1st N/A N/A Sky Mesa Capital/Realty 27 Seven Hills Business Park South Las Vegas 5,172 1st N/A N/A Cushman & Wake eld 28 Graves Morrissey O ce Building Southwest Las Vegas 5,124 1st Genesis Financial N/A Morrissey Insurance 29 Westcli Plaza - Bldg 9 Northwest Las Vegas 4,995 1st N/A N/A Omninet Capital; Newmark Knight Fra 30 Bonneville Square Downtown Las Vegas 4,700 1st Fabian Bancock N/A Avison Young 31 8920 W Tropicana Ave Southwest Las Vegas 4,581 1st N/A N/A Sun Commercial Real Estate 32 8965 S Eastern Ave South Las Vegas 4,504 1st N/A N/A Colliers International 33 3685 Pecos Mcleod Rd Central East Las Vegas 4,500 1st Transition Services Inc. Logic Commercial Real Estate Limestone Investments LLC 34 Peel Brimley Law Building South Las Vegas 4,448 1st Myers & Ohira, An Accountancy Corporation N/A Direct Deal 35 Ponderosa O ce Park Southwest Las Vegas 4,422 1st N/A N/A Fortis Commercial Advisors 36 Premier Plaza Southwest Las Vegas 4,028 1st Reszeratrol N/A Commercial Executives Real Estate S 37 3883 Howard Hughes Pky Central East Las Vegas 4,021 1st N/A N/A CBRE 38 4530 S Decatur Blvd Southwest Las Vegas 4,019 1st N/A N/A Colliers International 39 2755 E Desert Inn Rd Central East Las Vegas 3,932 1st N/A N/A Cushman & Wake eld 40 3755 Breakthrough Way Southwest Las Vegas 3,763 1st N/A Newmark Knight Frank Cushman & Wake eld * Renewal 2018 CoStar Group, Inc. CoStar Office Statistics 13
Las Vegas First Quarter 2018 Sales Activity The Optimist Sales Index Average of Two Highest Price/SF's and Two Lowest Cap Rates Per Quarter 12.0% Cap Rate Price/SF $790 10.0% $690 Cap Rate Percentage 8.0% 6.0% 4.0% $590 $490 $390 Dollars/SF 2.0% $290 0.0% 2015 1q 2016 1q 2017 1q $190 Source: CoStar COMPS Sales Volume & Price Sales Analysis by Building Size Based on Office Building Sales of 15,000 SF and Larger Based on Office Building Sales From Jan. 2017 - Dec. 2017 $300 Sales Volume Price/SF $300 Bldg Size # RBA $ Volume Price/SF Cap Rate Millions of Sales Volume Dollars $250 $200 $150 $100 $250 $200 $150 $100 Price/SF < 50,000 SF 121 1,815,948 $353,966,728 $ 194.92 7.38% 50K-249K SF 250K-499K SF 23 2,128,126 $410,982,510 $ 193.12 7.24% - - - $ - - $50 $50 $0 $0 >500K SF - - - $ - - 2014 1q 2015 1q 2016 1q 2017 1q Source: CoStar COMPS Source: CoStar COMPS U.S. Price/SF Comparison Based on Office Building Sales of 15,000 SF and Larger U.S. Cap Rate Comparison Based on Office Building Sales of 15,000 SF and Larger $350 Las Vegas US 11.0% Las Vegas US 10.0% Dollars per SF $300 $250 $200 Cap Rate Percentage 9.0% 8.0% 7.0% 6.0% 5.0% 4.0% $150 3.0% 2.0% $100 1.0% 2014 1q 2015 1q 2016 1q 2017 1q 2014 1q 2015 1q 2016 1q 2017 1q Source: CoStar COMPS Source: CoStar COMPS 14 CoStar Office Statistics 2018 CoStar Group, Inc.
First Quarter 2018 Las Vegas 2018 CoStar Group, Inc. CoStar Office Statistics 15 Sales Activity
Las Vegas First Quarter 2018 Deliveries, Absorption & C e n t r a l E a s t L a s V e g a s M a r k e t Market Highlights Class A, B & C 0.200 Delivered SF Absorption SF 25.0% 0.150 20.0% 0.100 0.050 0 15.0% 10.0% Percent Vacant (0.050) 5.0% (0.100) 2015 1q 2015 2q 2015 3q 2015 4q 2016 1q 2016 2q 2016 3q 2016 4q 2017 1q 2017 2q 2017 3q 2017 4q 2018 1q 0.0% Vacant Space Quoted Rental Rates 1.74 Direct SF Sublet SF $20.50 1.72 $2 1.70 1.68 1.66 1.64 Dollars/SF/Year $19.50 $19.00 $18.50 1.62 1.60 $18.00 1.58 $17.50 Net Delivered Inventory UC Inventory Quoted Period # Bldgs Total RBA Vacant SF % Absorption # Bldgs Total RBA # Bldgs Total RBA Rates 2018 1q 658 9,289,220 1,670,697 18.0% (6,002) 0 0 1 61,146 $20.02 2017 4q 658 9,289,220 1,664,695 17.9% 38,352 0 0 1 61,146 $20.27 2017 3q 658 9,289,220 1,703,047 18.3% 15,569 0 0 1 61,146 $18.79 2017 2q 658 9,289,220 1,718,616 18.5% 10,806 0 0 1 61,146 $18.67 2017 1q 658 9,289,220 1,729,422 18.6% (26,982) 0 0 1 61,146 $18.86 2016 4q 658 9,289,220 1,702,440 18.3% 179,582 1 978 1 61,146 $19.31 2016 3q 657 9,288,242 1,881,044 20.3% 77,081 0 0 2 62,124 $18.97 2016 2q 656 9,271,737 1,941,620 20.9% (32,573) 0 0 3 78,629 $19.71 2016 1q 656 9,271,737 1,909,047 20.6% 6,998 0 0 3 78,629 $19.61 2015 4q 656 9,271,737 1,916,045 20.7% 85,095 0 0 1 16,505 $19.67 2015 3q 657 9,307,192 2,036,595 21.9% (74,580) 0 0 1 16,505 $19.58 2015 2q 657 9,307,192 1,962,015 21.1% 66,613 0 0 1 16,505 $18.91 2015 1q 657 9,307,192 2,028,628 21.8% (25,478) 0 0 1 16,505 $19.50 2014 4q 657 9,307,192 2,003,150 21.5% (21,854) 0 0 0 0 $19.86 2014 3q 657 9,307,192 1,981,296 21.3% 24,479 0 0 0 0 $19.48 2014 2q 658 9,317,597 2,016,180 21.6% 34,700 0 0 0 0 $2 16 CoStar Office Statistics 2018 CoStar Group, Inc.
Deliveries, Absorption & C e n t r a l N o r t h L a s V e g a s M a r k e t Market Highlights Class A, B & C First Quarter 2018 Las Vegas 0.025 0.020 0.015 0.010 5 0 (5) (0.010) (0.015) (0.020) (0.025) (0.030) Delivered SF Absorption SF 2015 1q 2015 2q 2015 3q 2015 4q 2016 1q 2016 2q 2016 3q 2016 4q 2017 1q 2017 2q 2017 3q 2017 4q 2018 1q 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% Percent Vacant Vacant Space Quoted Rental Rates 0.15 Direct SF Sublet SF $25.00 0.14 $2 0.14 0.13 0.13 0.12 0.12 Dollars/SF/Year $15.00 $1 $5.00 0.11 $ Net Delivered Inventory UC Inventory Quoted Period # Bldgs Total RBA Vacant SF % Absorption # Bldgs Total RBA # Bldgs Total RBA Rates 2018 1q 141 2,355,006 140,668 6.0% 1,297 0 0 0 0 $20.80 2017 4q 141 2,355,006 141,965 6.0% (298) 0 0 0 0 $16.54 2017 3q 141 2,355,006 141,667 6.0% (18,973) 0 0 0 0 $18.26 2017 2q 141 2,355,006 122,694 5.2% 18,656 0 0 0 0 $18.06 2017 1q 141 2,355,006 141,350 6.0% 671 0 0 0 0 $19.71 2016 4q 141 2,355,006 142,021 6.0% 8,491 0 0 0 0 $18.23 2016 3q 141 2,355,006 150,512 6.4% (8,835) 0 0 0 0 $17.45 2016 2q 141 2,355,006 141,677 6.0% 7,619 0 0 0 0 $17.40 2016 1q 141 2,355,006 149,296 6.3% (19,823) 0 0 0 0 $18.63 2015 4q 141 2,355,006 129,473 5.5% (26,598) 0 0 0 0 $17.84 2015 3q 141 2,355,006 102,875 4.4% 1,818 0 0 0 0 $17.92 2015 2q 141 2,355,006 104,693 4.4% (19,505) 0 0 0 0 $18.07 2015 1q 141 2,355,006 85,188 3.6% 5,455 1 8,504 0 0 $18.64 2014 4q 140 2,346,502 82,139 3.5% 3,691 0 0 1 8,504 $20.88 2014 3q 140 2,346,502 85,830 3.7% 77,335 0 0 1 8,504 $20.20 2014 2q 140 2,346,502 163,165 7.0% (9,507) 0 0 1 8,504 $20.58 2018 CoStar Group, Inc. CoStar Office Statistics 17
Las Vegas First Quarter 2018 Deliveries, Absorption & D o w n t o w n L a s V e g a s M a r k e t Market Highlights Class A, B & C 0.200 0.150 Delivered SF Absorption SF 10.0% 9.0% 8.0% 0.100 0.050 0 (0.050) 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% Percent Vacant (0.100) 2015 1q 2015 2q 2015 3q 2015 4q 2016 1q 2016 2q 2016 3q 2016 4q 2017 1q 2017 2q 2017 3q 2017 4q 2018 1q 0.0% Vacant Space Quoted Rental Rates 0.50 Direct SF Sublet SF $26.80 0.49 0.48 $26.60 0.47 0.46 0.45 0.44 0.43 Dollars/SF/Year $26.40 $26.20 $26.00 0.42 0.41 $25.80 0.40 0.39 $25.60 Net Delivered Inventory UC Inventory Quoted Period # Bldgs Total RBA Vacant SF % Absorption # Bldgs Total RBA # Bldgs Total RBA Rates 2018 1q 326 5,351,828 430,031 8.0% 56,708 0 0 0 0 $26.24 2017 4q 326 5,351,828 486,739 9.1% (7,176) 0 0 0 0 $26.45 2017 3q 326 5,351,828 479,563 9.0% (34,356) 0 0 0 0 $25.98 2017 2q 326 5,351,828 445,207 8.3% 3,063 0 0 0 0 $26.63 2017 1q 326 5,351,828 448,270 8.4% 31,035 0 0 0 0 $26.25 2016 4q 326 5,351,828 479,305 9.0% 10,903 0 0 0 0 $26.70 2016 3q 326 5,351,828 490,208 9.2% (58,638) 0 0 0 0 $27.27 2016 2q 326 5,351,828 431,570 8.1% 153,779 1 140,000 0 0 $25.65 2016 1q 325 5,211,828 445,349 8.5% (14,194) 0 0 1 140,000 $25.65 2015 4q 325 5,211,828 431,155 8.3% 1,673 0 0 1 140,000 $25.12 2015 3q 325 5,211,828 432,828 8.3% 5,294 0 0 1 140,000 $26.26 2015 2q 325 5,211,828 438,122 8.4% (83,110) 0 0 1 140,000 $26.39 2015 1q 325 5,211,828 355,012 6.8% (47,958) 0 0 1 140,000 $25.82 2014 4q 325 5,211,828 307,054 5.9% (2,408) 0 0 1 140,000 $26.11 2014 3q 325 5,211,828 304,646 5.8% 909 0 0 1 140,000 $25.56 2014 2q 325 5,211,828 305,555 5.9% 17,568 0 0 1 140,000 $25.01 18 CoStar Office Statistics 2018 CoStar Group, Inc.