4Q16 NEW YORK CITY OFFICE MARKET OVERVIEW

4Q16 NEW YORK CITY OFFICE MARKET OVERVIEW

TABLE OF CONTENTS 3 Executive Summary 4 Manhattan Office Market Overview 5 Leasing Activity by Market 6 Renewals versus Relocations 7 Industries Driving Demand 8 Manhattan Submarket Comparison 9 Asking Rent Trends 20 Relocations and New Construction 21 Manhattan Supply Forecast 22 Commercial Development Pipeline 23 Manhattan Development Overview 24 Manhattan Boutique Development Overview 10 Taking and Net Effective Rent Trends 11 Concessions Analysis: Work Amount 12 Concessions Analysis: Free Rent 13 Manhattan Trophy Trends 14 Triple-Digit Taking Rent Assets 15 Manhattan Top-Tier Trends 16 Midtown South Top-Tier Trends 17 Midtown Deal Composition 18 Midtown South Deal Composition 19 Downtown Deal Composition 25 Brooklyn and Long Island City Office Market Overview 26 Brooklyn Office Development Overview 27 Brooklyn s Changing Inventory 28 Brooklyn Market Trends 29 Brooklyn Submarket Snapshot 30 Asking Rent Comparison 31 Long Island City Trends 32 Long Island City Submarket Snapshot 2

EXECUTIVE SUMMARY Leasing Activity Industry Growth Manhattan total leasing in 2016 dropped 3% from 2015. Activity varied among the major markets with Midtown showing an overall increase. Midtown South activity dropped dramatically from 2015. Downtown increased from 2015, but both years were off significantly from 2014. FIRE tenants drove relocation activity while TAMI activity slowed for the second year in a row. Asking and Taking Rents Growth in asking rents slowed in comparison to the prior five years. Taking rent growth also slowed in Midtown South and Downtown, while Midtown outpaced recent years. Net Effective Rents Net effective rental rates flattened during 2016 as landlords increased work allowances and prebuilt units to enhance competitiveness and protect face rents. Premier Space Deal-making for triple-digit space slowed in the second half of the year. Year-end levels remained ahead of five-year averages, but below 2015. New Supply Approximately 15 million square feet of development projects are scheduled for completion by 2020 with another 14 million square feet in the planning stages. Borough Trends Brooklyn and Long Island City rents stabilized in 2016. Availability dropped in Long Island City as new product was absorbed, but Brooklyn showed an increase as new inventory was introduced to the market. 3

4Q16 MANHATTAN OFFICE MARKET OVERVIEW

LEASING ACTIVITY BY MARKET Total leasing rose in Midtown, but dropped dramatically in Midtown South. Downtown leasing remains off from the 2013 peak. Midtown (MSF) Midtown South (MSF) Downtown (MSF) 27 14 11 24 21 18 15 19.9 MSF 12 10 8 10.4 MSF 10 9 8 7 6 6.7 MSF 12 9 6 3 6 4 2 5 4 3 2 1 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Renewals Relocations Average Annual Velocity Renewals Relocations Average Annual Velocity Renewals Relocations Average Annual Velocity 5

RENEWALS VERSUS RELOCATIONS Manhattan Renewal activity rose in 2016 after three consecutive years of decreases. Renewals & Expansions, 36% Renewals & Expansions, 25% Renewals & Expansions, 23% Renewals & Expansions, 30% 2013 2014 2015 2016 Relocations, 64% Relocations, 75% Relocations, 77% Relocations, 70% 6

INDUSTRIES DRIVING DEMAND Relocation activity among FIRE tenants has increased while TAMI tenant activity has dropped. Relocation Activity by Industry 4Q16 Leasing by Industry 60% 50% 55% 100% 90% Other, 16% Other, 24% Other, 10% 40% 30% 20% 10% 0% 41% 40% 41% 45% 48% 4% 19% 23% 32% 23% 29% 2013 2014 2015 2016 80% 70% 60% 50% 40% 30% 20% 10% 0% Leisure, 21% Leisure, 3% TAMI 8% Prof Svcs 19% FIRE 36% TAMI 44% Prof Svcs 10% FIRE 19% Healthcare, 44% TAMI 16% Prof Svcs 15% FIRE 15% Midtown Midtown South Downtown Professional Services FIRE TAMI, New York State Department of Labor 7

MANHATTAN SUBMARKET COMPARISON Rental rate growth has begun to slow across nearly all of Manhattan s submarkets and decline in several Midtown submarkets. Availability Rate (%) Average Asking Rent ($/SF) Manhattan 11.9% $76.14 Midtown 12.4% $82.19 Eastside 9.5% $76.19 Far West Side 17.9% $85.27 Grand Central 14.2% $77.25 Murray Hill 8.6% $60.57 Park Avenue 13.4% $104.07 Penn Station 8.3% $62.10 Plaza District 15.9% $110.42 Sixth Ave/Rock Ctr. 13.5% $86.15 Times Square 10.1% $80.66 Times Square South 12.5% $63.58 Westside 9.4% $70.16 Midtown South 8.5% $72.99 Chelsea 9.1% $69.03 East Village 6.9% $48.00 Flatiron/Union Square 6.9% $70.05 Hudson Square/Meatpacking 13.1% $82.27 Noho/Soho 5.8% $72.16 Downtown 13.2% $62.25 Downtown East 12.5% $57.42 Downtown West 14.0% $67.68 Tribeca/City Hall 14.4% $65.70 Submarket Rent Growth Comparison Eastside 7% 7% Far West Side 13% 13% Grand Central 3% 6% Murray Hill -1% 7% Park Avenue 2% 7% Penn Station -2% 9% Plaza District -3% 8% Sixth Ave/Rock Ctr. -2% 7% Times Square -1% 5% Times Square South 3% 10% Westside 3% 8% Chelsea 8% 13% East Village 5% 10% Flatiron/Union Square 8% -0.4% Hudson Square/Meatpacking -3% 15% Noho/Soho 8% 11% Downtown East 8% 8% Downtown West -0.2% 9% Tribeca/City Hall 8% 7% Growth Per Annum Since 2010 (%) Growth Past 12 Months (%) 8

ASKING RENT TRENDS Average Asking Rent by Market ($/SF) Year-over-year asking rent growth slowed in 2016 in comparison to the last six years. $95 $89.02 Average Annual Change Since Trough (2010) Change since 4Q15 MT 5.6% 1.4% $85 $75 MTS 9.2% 2.2% DT 7.4% 2.7% $82.19 $72.99 $65 $58.93 $57.02 $62.25 $55 $45 $51.56 $40.33 $35 $39.09 $25 4Q05 4Q06 4Q07 4Q08 4Q09 4Q10 4Q11 4Q12 4Q13 4Q14 4Q15 4Q16 Midtown Midtown South Downtown 9

TAKING AND NET EFFECTIVE RENT TRENDS Average net effective rents for direct deals with >5-year terms Taking rent growth grew in Midtown, but dropped in Midtown South and Downtown. Increased concessions caused net effective rents to flatten. Base Taking Rent Trends Net Effective Rent Trends $80 $75 $76.47 $80 $75 $70 $65 $60 $68.26 $70 $65 $60 $63.85 $59.48 $55 $50 $51.93 $55 $50 $45 $40 $45 $40 $42.26 $35 $35 $30 2010 2011 2012 2013 2014 2015 2016 $30 2010 2011 2012 2013 2014 2015 2016 Midtown Midtown South Downtown Midtown Midtown South Downtown Average Annual Change Since Trough (2009-2010) Change Since 2015 Average Annual Change Since Trough (2009-2010) Change Since 2015 MT 6.2% 8.2% MTS 10.0% 2.5% DT 7.0% 2.4% MT 4.7% -0.5% MTS 8.2% 0.3% DT 4.7% 0.2% *Midtown 2016 YTD averages are impacted on a weighted basis by the Citadel deal at 425 Park. Including that deal, the average taking rent is pushed to $79.56/SF and average NER is pushed to $65.89/SF. 10

CONCESSIONS ANALYSIS Work Alklowance for direct deals with >10-year terms, +10K SF Work amount is on the rise as landlords protect face rents and compete to attract tenants in a market that has a surplus of options. 2016 Average Work Allowance ($/SF) Percent Change Year-Over-Year Plaza District $90.00 Park Avenue 30% Park Avenue $87.92 Penn Station 29% Grand Central $82.92 Plaza District 28% Sixth Ave/Rock Ctr. $80.69 Grand Central 28% Westside $76.07 Westside 21% Penn Station $75.00 Downtown West 19% Downtown West $67.97 Sixth Avenue/Rockefeller Center 12% Times Square South $66.85 Times Square South 11% Eastside $65.69 Flatiron/Union Square 6% Downtown East $60.78 Eastside 2% Flatiron/Union Square $59.29 Downtown East 0% Hudson Square/Meatpacking $58.49 Hudson Square/Meatpacking -3% Downtown Midtown South Midtown Downtown Midtown South Midtown 11

CONCESSIONS ANALYSIS Free rent for direct deals with >10-year terms, +10K SF Manhattan-wide, free rent held steady at 8.9 months while there was some variation within the submarkets. 2016 Free Rent (Months) Percent Change Year-Over-Year Park Avenue 12 Park Avenue 33% Sixth Ave/Rock Ctr. 10 Downtown West 29% Penn Station 10 Penn Station 25% Hudson Square/Meatpacking 9 Westside 13% Grand Central 9 Flatiron/Union Square 13% Westside 9 Grand Central 0% Flatiron/Union Square 9 Sixth Avenue/Rockefeller Center 0% Downtown West 9 Plaza District 0% Times Square South 8 Eastside 0% Plaza District 8 Hudson Square/Meatpacking -10% Eastside 8 Times Square South -11% Times Square Downtown East 7 8 Times Square Downtown East -11% -13% Downtown Midtown South Midtown Downtown Midtown South Midtown 12

MANHATTAN TROPHY TRENDS DIRECT ASKING RENTS TROPHY VS NON TROPHY CLASS A Asking rent spreads between Trophy and Class A assets have grown across all three Manhattan markets since the last cycle peak. $150 Midtown Asking Rent ($/SF) $110 Midtown South Asking Rent ($/SF) $90 Downtown Asking Rent ($/SF) $130 $90 $75 $110 $90 $70 36% spread 52% spread $70 $50 26% spread 39% spread $60 $45 31% spread 42% spread $50 $30 $30 Trophy Rent Non-Trophy Class A Rent Trophy Rent Non-Trophy Class A Rent Trophy Rent Non-Trophy Class A Rent Asking Rent Growth Asking Rent Growth Asking Rent Growth Change Since 2015 6.0% 11.6% Change Since 2015 5.4% 21.9% Change Since 2015 12.1% 13.5% Avg. Annual Since 2010 4.2% 7.0% Avg. Annual Since 2010 10.6% 8.0% Avg. Annual Since 2010 5.4% 7.7% 0.0% 5.0% 10.0% 15.0% Trophy Non-Trophy Class A 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% Trophy Non-Trophy Class A 0.0% 5.0% 10.0% 15.0% Trophy Non-Trophy Class A 13

TRIPLE-DIGIT TAKING RENT ASSETS Number of buildings that signed $100+ taking rents each year Eight of 37 buildings that achieved triple-digit rents in 2016 were new construction. 60 50 40 30 20 10 0 56 49 41 37 26 32 29 25 23 14 12 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Buildings with $100+ Taking Rents in 2016 YTD Midtown 30 Hudson Yards 437 Madison Avenue 888 Seventh Avenue 510 Madison Avenue 55 West 46th Street 650 Madison Avenue 250 West 55th Street 660 Madison Avenue 152 West 57th Street 667 Madison Avenue 1095 Avenue of the Americas 277 Park Avenue 1114 Avenue of the Americas 280 Park Avenue 1251 Avenue of the Americas 350 Park Avenue 1330 Avenue of the Americas 375 Park Avenue 712 Fifth Avenue 399 Park Avenue 717 Fifth Avenue 425 Park Avenue 745 Fifth Avenue 450 Park Avenue 767 Fifth Avenue 499 Park Avenue 9 West 57th Street 450 Lexington Avenue 10 East 53rd Street 601 Lexington Avenue 65 East 55th Street 7 Bryant Park Midtown South 111 Eighth Avenue 770 Broadway 404 West 14th Street 315 Park Avenue South 860 Washington Street Number of Triple-Digit Assets 14

MANHATTAN TOP-TIER TRENDS Transactions with taking rents over $100/SF Ten relocations over 20K SF were recorded in 2016, the highest this market cycle. 100 16 75 26 50 25 0 22 9 16 7 74 19 21 12 58 13 8 9 46 38 38 34 31 4 29 6 29 24 11 6 18 17 13 11 10 3 2 4 8 6 7 10 3 1 1 1 3 3 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Transactions Under 20K SF: Relocations Renewals and Expansions Transactions Over 20K SF: Relocations Renewals and Expansions 15

MIDTOWN SOUTH TOP-TIER TRENDS Transactions with taking rents over $75/SF Deal-making at the top end of the market in Midtown South slowed in 2016 from the past two years. Number of Deals Signed Over $75/SF 2016 MTS Taking Rents Over $75/SF By Industry 40 In 2016 57.1% of deals were renewals and relocations from within Midtown South. 30 23.8% of deals were relocations from Midtown. 20 14.3% of deals were relocations from outside Manhattan. 4.8% of deals were relocations from Downtown. 34 TAMI 32% Other 32% 30 10 21 FIRE 18% Business Services 18% 7 7 0 1 2 2010 2011 2012 2013 2014 2015 2016 16

MIDTOWN DEAL COMPOSITION Direct deals with five-year terms and longer Commodity spaces drove Midtown leasing in 4Q16. Six transactions were signed over 100K SF, while the majority were small and midsized. 30% Number of Deals by Taking Rent Number of Deals by Size Over 50K-100K SF 100,000 SF 5% 5% 25% 25K-50K SF 12% 20% 10K-25K SF 30% Under 10,000 SF 48% 15% 10% 5% 0% $40s $50s $60s $70s $80s $90s $100s $110s $120s $130+ Top Deals Address SF Lease Type Industry Major League Baseball 1271 Avenue of the Americas 400,000 Direct New Leisure Hogan Lovells 390 Madison Avenue 206,720 Direct New Legal Services Point72 Asset Management 55 Hudson Yards 182,447 Direct New FIRE National Basketball Association 645 Fifth Avenue 175,000 Renewal Leisure National Hockey League 1 Manhattan West 160,631 Direct New Leisure 17

MIDTOWN SOUTH DEAL COMPOSITION Direct deals with five-year terms and longer 4Q16 deals ranged from the $40s per square foot to the $80s with the majority signed in the $60s, while 85% of deals were under 25K SF. Number of Deals by Taking Rent Number of Deals by Size 45% 40% Over 50K SF, 6% 25K-50K SF 9% 35% 30% 10K-25K SF 29% Under 10K SF 56% 25% 20% 15% 10% 5% 0% $40s $50s $60s $70s $80s Top Deals Address SF Lease Type Industry ZocDoc 568 Broadway 85,000 Renewal TAMI Capital One 11 West 19th Street 78,000 Sublease TAMI NYU Langone Medical Center Pivotal Labs 360 Park Avenue South 67,500 Sublease Healthcare 636 Avenue of the Americas 49,691 Sublease TAMI Deloitte Digital 330 Hudson Street 37,358 Sublease TAMI 18

DOWNTOWN DEAL COMPOSITION Direct deals with five-year terms and longer Nearly 80% of Downtown deals signed during 4Q16 were priced in the $40s and $50s per square foot. Almost 90% were below 25K SF. 50% 45% Number of Deals by Taking Rent Number of Deals by Size Over 100K SF 25K-50K SF 4% 8% 40% 35% 30% 10K-25K SF 38% Under 10K SF 50% 25% 20% 15% 10% 5% 0% $30s $40s $50s $60s Top Deals Address SF Lease Type Industry New York State Department of Health 90 Church Street 256,000 Renewal Government Abrams Books 195 Broadway 41,982 Direct New TAMI Continental Stock Transfer & Trust Co. 1 State Street Plaza 37,773 Direct New Maximus 30 Broad Street 28,080 Renewal Microtek 85 Broad Street 20,768 Direct New Financial Services Business Services Business Services 19

RELOCATIONS AND NEW CONSTRUCTION The majority of tenants relocating to new construction will vacate space from core Midtown submarkets. 2016 Relocations to New Construction versus Existing Inventory Tenants Relocating to New Construction from Other Markets New Construction 13% Midtown South, 10% Downtown, 13% Outside NYC, 3% Midtown Submarket Breakdown Westside, 4% Times Square South, 9% Times Square, 9% Sixth Ave/ Rock Ctr., 17% Plaza District, 17% Park Ave, 17% Existing Construction 87% Midtown, 74% Far West Side, 4% Grand Central, 4% Eastside, 17% 20

MANHATTAN SUPPLY FORECAST Manhattan will see a potential influx of 25.1M SF of new construction and large block availabilities over the next five years. New Construction (SF) and Availability (%) 8,000,000 6,000,000 Between 2017 and 2020 7.9M SF (1.8% of the market) is expected to be available from tenants that signed relocations. New construction would increase the market s inventory by 3.4%. 20% 15% 4,000,000 10% 2,000,000 5% 0 0% 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 New Construction New Construction Future Deliveries Manhattan Availability Select Anticipated Large Block Availabilities by Year 2017 2018 2019 2020 620 Eighth Avenue 1271 Avenue of the Americas 60 Columbus Circle 4 Times Square 1 Liberty Street 1114 Avenue of the Americas 245 Park Avenue 9 West 57th Street 875 Third Avenue 1110 Avenue of the Americas 875 Third Avenue 375 Park Avenue 21

COMMERCIAL DEVELOPMENT PIPELINE Manhattan (MSF) 16 14 12 10 8 6 About 29 million square feet of new office product is under construction and in the planning stages in Manhattan. 2014 837 Washington Street 1 World Trade Center 2015 7 Bryant Park 430 West 15th Street 2016 10 Hudson Yards 860 Washington Street 2017 89 Bowery 855 Avenue of the Americas 432 Park Avenue 390 Madison Avenue 540 West 26th Street 510-512 West 22nd Street 412-414 West 15 th Street 9 Orchard Street New Construction 86.9 MSF 2018 2 Pike Street 300 Lafayette Street 3 World Trade Center 425 Park Avenue 55 Hudson Yards 61 Ninth Avenue 40 Tenth Avenue 2019 1 Manhattan West 30 Hudson Yards 3 Hudson Boulevard 106 West 56th Street 2021 One Vanderbilt Avenue TBD 50 Hudson Yards 2 World Trade Center 2 Manhattan West 66 Hudson Boulevard 15 Penn Plaza 99 Hudson Boulevard 75 Ninth Avenue 44 Union Square East Expected Delivery 15.1 MSF Potential Delivery 13.7 MSF 4 2 0 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 TBD 22

MANHATTAN DEVELOPMENT OVERVIEW WORLD TRADE CENTER PORT AUTHORITY OF NY/NJ, DURST MIDTOWN EAST 1 World Trade Center 2 World Trade Center 3 World Trade Center 4 World Trade Center 7 Bryant Park L&L HOLDING, RREEF 390 Madison Avenue 3.0M SF 2.8M SF 2.5M SF 2.3M SF 473,000 SF 843,710 SF 670,000 SF 1.9M SF 2014 TBD 2018 2013 2015 2017 2018 2021 Completed Under Construction Completed Completed Under Construction Under Construction SILVERSTEIN PROPERTIES BANK OF CHINA L&L HOLDING COMPANY 425 Park Avenue One Vanderbilt Avenue SL GREEN FAR WEST SIDE THE RELATED COMPANIES MITSUI FUDOSAN, RELATED THE RELATED COMPANIES 10 Hudson Yards 55 Hudson Yards 30 Hudson Yards 1 Manhattan West 2 Manhattan West 1.7M SF 1.3M SF 2.6M SF 2.1M SF 2.1M SF 2016 2018 2019 2019 Completed Under Construction Under Construction Under Construction BROOKFIELD PROPERTIES, QIA THE RELATED COMPANIES 50 Hudson Yards MOINIAN GROUP TISHMAN SPEYER 3 Hudson Boulevard 66 Hudson Boulevard 99 Hudson Boulevard 2.3M SF 1.8M SF 2.9M SF 1.3M SF TBD TBD 2019 TBD TBD Under Construction 23

MANHATTAN BOUTIQUE DEVELOPMENT OVERVIEW Rendering not yet available ROMANOFF EQUITIES CIM GROUP WING FUNG GROUP SAVANNA VORNADO REALTY TRUST, ALBANESE ORGANIZATION 860 Washington Street 432 Park Avenue 89 Bowery 540 West 26th Street 512 West 22nd Street Midtown South 120,413 SF 2016 Completed Midtown 71,000 SF 2017 Under Construction Midtown South 23,831 SF 2017 Under Construction Midtown South 128,367 SF 2017 Under Construction Midtown South 170,000 SF 2017 Under Construction YEUNG REAL ESTATE THE RELATED COMPANIES VORNADO REALTY TRUST ROCKPOINT, LM LEGACY GROUP AURORA, WILLIAM GOTTLIEB REAL ESTATE SAVANNA, ATOM ASSETS 2 Pike Street 300 Lafayette Street 61 Ninth Avenue 412 West 15th Street 40 Tenth Avenue 106 West 56th Street Midtown South 93,000 SF 2018 Under Construction Midtown South 81,000 SF 2018 Under Construction Midtown South 167,170 SF 2018 Under Construction Midtown South 144,273 SF 2017 Under Construction Midtown South 116,205 SF 2018 Midtown 90,000 SF 2019 24

4Q16 BROOKLYN AND LONG ISLAND CITY OFFICE MARKET OVERVIEW

BROOKLYN OFFICE DEVELOPMENT New Construction and Repositioned Buildings DUMBO Submarket DOWNTOWN BROOKLYN Kushner Co., Quinian Dev JEMB Realty CIM Group, Group, BLT Corp. LIVWRK NAVY YARD Building Address 10 Jay Street 80 Hudson Avenue 25-30 Columbia Heights 41 Flatbush Avenue 420 Albee Square 422 Fulton Street GMC Building 128 Building 77 Building 3 29 Ryerson Street Dock 72 47 Hall Street Size (SF) 220,311 96,347 750,000 270,910 400,000 TBD 250,000 1,177,000 700,000 280,000 675,000 650,000 2017 2017 2018 2017 2018 TBD 2016 2017 2017 2017 2018 2018 Redevelop Redevelop Redevelop Redevelop New Construction Redevelop Redevelop Redevelop Redevelop Redevelop New Construction Redevelop Under Construction Under Construction Under Construction Completed Under Construction Under Construction Project Type Status Submarket SUNSET PARK RED HOOK Brooklyn Navy Yard Development Corp. Boston Westbrook Properties, Partners, RXR Rudin Mgt Cibrano Family Year Open Tishman Speyer Madison Realty Capital Triangle Assets Owner/ Developer WILLIAMSBURG BUSHWICK Rendering not yet available Jamestown, Belvedere Cap, Angelo Gordon Madison Realty Capital Building Address Industry City Size (SF) Owner/ Developer Year Open Project Type Status Rendering not yet available Rendering not yet available PWR Estate Four Thor Equities Heritage Equity Cayuga Capital Two Trees Mgt Savanna, Hornig Capital Lincoln Property Group Normandy Hudson Princeton Heritage, Co. Holdings Royalton, Equity Sciame Whale Square 160 Van Brunt Street 68 Ferris Street 280 Richards Street 25 Kent Avenue 87 Wythe Avenue Domino Sugar Factory 95 Evergreen Avenue 455 Jefferson Street 314 Scholes Street 121 Morgan Avenue 333 Johnson Avenue 215 Moore Street 6,000,000 500,000 111,565 1,200,000 622,103 480,000 100,000 380,000 165,000 122,700 80,000 100,000 285,000 170,000 In phases starting 2015 2016 2016 2020 TBD 2018 2018 TBD 2016 2017 2018 TBD TBD TBD Redevelop Redevelop Redevelop Redevelop Redevelop Under Construction Completed Completed Completed New New New New Construction Construction Construction Construction Under Under Construction Construction Redevelop Redevelop Redevelop Under Construction Redevelop Redevelop 26

BROOKLYN S CHANGING INVENTORY Impact of New Construction and Repositioned Buildings Downtown Brooklyn is capturing little of the borough s development boom. Construction projects are creating new submarkets. DOWNTOWN BROOKLYN SUNSET PARK DUMBO WILLIAMSBURG/ BUSHWICK NAVY YARD 2013 Inventory (SF) 15,985,404 6,000,000 3,254,111 1,532,155 1,698,330 Current Inventory (SF) 15,992,948 6,500,000 3,908,181 1,589,878 3,155,330 Projected Inventory (SF) Through 2018 16,392,948 6,500,000 4,658,181 3,433,329 4,480,330 Inventory Differential (SF) 2013-2018 407,544 500,000 1,404,070 1,901,174 2,782,000 2.8% SF DIFFERENCE 2013-2018 8.3% SF DIFFERENCE 2013-2018 43.1% SF DIFFERENCE 2013-2018 124.1% SF DIFFERENCE 2013-2018 163.8% SF DIFFERENCE 2013-2018 27

BROOKLYN MARKET TRENDS New inventory pushed average asking rents to a new historic high during 4Q16 while availability continued to climb. Overall Average Asking Rent and Availability Prime Assets Average Asking Rent and Availability $45 18% $60 18% $40 16% 16% $50 $35 14% 14% $30 12% $40 12% $25 10% 10% $30 $20 8% 8% $15 6% $20 6% $10 4% 4% $10 $5 2% 2% $0 0% 4Q06 4Q07 4Q08 4Q09 4Q10 4Q11 4Q12 4Q13 4Q14 4Q15 4Q16 Average Asking Rent (Price/SF) Availability (%) $0 0% 4Q06 4Q07 4Q08 4Q09 4Q10 4Q11 4Q12 4Q13 4Q14 4Q15 4Q16 Average Asking Rent (Price/SF) Availability (%) 28

BROOKLYN SUBMARKET SNAPSHOT Greenpoint Upper New York Bay Bay Ridge Fort Hamilton Lower New York Bay Red Hook DUMBO BK Heights Cobble Hill Sunset Park Borough Park Dyker Heights Sea Gate Bath Beach Navy Yard Clinton Hill Fort Greene Park Slope Prospect Heights Prospect Park Windsor Terrace Kensington Bensonhurst Gravesend Coney Island Williamsburg Prospect Park South Flatbush Midwood Brighton Beach Bedford Stuyvesant Bushwick Crown Heights Lefferts Gardens Sheepshead Bay Manhattan Beach East Flatbush Marine Park Flatlands Brownsville BK Marine Park Gerritsen Beach Canarsie Bergen Beach Mill Basin Cypress Hills Barren Island East New York Jamaica Bay DOWNTOWN BROOKLYN w Total Inventory: 15,992,948 SF w Availability Rate: 5.7% w Average Asking Rent, Prime Assets: $47.88/SF w Average Asking Rent, Standard Assets: $42.67/SF w 2016 Absorption: -292,227 SF DUMBO w Total Inventory: 3,908,181 SF w Availability Rate: 25.8% w Average Asking Rent, Prime Assets: $57.30/SF w Average Asking Rent, Standard Assets: $33.75/SF w 2016 Absorption: -63,200 SF BROOKLYN NAVY YARD w Total Inventory: 3,155,330 SF w Average Asking Rent: $39.59/SF w Building 77 added 226,426 SF of available space in 4Q16. SUNSET PARK w Total Inventory: 6,500,000 SF w Average Asking Rent: $30.15/SF WILLIAMSBURG / BUSHWICK w Total Inventory: 1,589,878 SF w Availability Rate: 22.6% w Average Asking Rent, Prime Assets: $52.51/SF w Average Asking Rent, Standard Assets: $23.90/SF w 2016 Absorption: 4,900 SF Prime Assets are Class A and newly repositioned space. Standard Assets are all other office inventory. 29

ASKING RENT COMPARISON Average Asking Rents ($/SF) Prime assets in Dumbo and Williamsburg are priced competitively with buildings in Manhattan. $90 $82.19 $80 $72.99 $70 $62.25 $60 $57.30 $52.51 $50 $47.88 $40 $38.36 $39.59 $30 $30.15 $20 $10 $0 Sunset Park Prime Long Island City Prime Brooklyn Navy Yard - Prime Downtown Brooklyn - Prime Williamsburg / Bushwick Prime Dumbo Prime Downtown Manhattan Overall Midtown South Overall Midtown Overall Prime Assets are Class A and newly repositioned space. 30

LONG ISLAND CITY TRENDS Overall Average Asking Rent and Availability Rental rate increases flattened in 2016 and availability decreased as new product was absorbed and no new projects were announced. $40 20% w Asking rents remained stable in 4Q16, averaging $37.77/SF, a 10.2% $35 16% w increase year-over-year. Availability declined 120 basis points to 12.0% this quarter, however $30 current availability is still higher than 12% it was 12 months prior. $25 w The Factory District drove the drop in availability in 2016 due to leasing 8% activity and the space withdrawn from $20 the market. $15 4% $10 0% 4Q06 4Q07 4Q08 4Q09 4Q10 4Q11 4Q12 4Q13 4Q14 4Q15 4Q16 Average Asking Rent (Price/SF) Availability (%) 31

LONG ISLAND CITY SUBMARKET SNAPSHOT ASTORIA w Total Inventory: 3,438,381 SF w Availability Rate: 18.5% Astoria w Average Asking Rent, Prime Assets: $35.51/SF w Average Asking Rent, Standard Assets: $29.15/SF w 2016 Absorption: -230,200 SF HUNTERS POINT/LIC WATERFRONT w Total Inventory: 3,733,385 SF Hunter s Point/ LIC Waterfront w Availability Rate: 4.0% w Average Asking Rent, Prime Assets: $36.52SF w Average Asking Rent, Standard Assets: $31.77/SF w 2016 Absorption: -31,531 SF THE FACTORY DISTRICT w Total Inventory: 4,577,999 SF w Availability Rate: 13.5% Factory District w Average Asking Rent, Prime Assets: $41.28/SF w Average Asking Rent, Standard Assets: $30.00/SF w 2016 Absorption: -52,407 SF Prime Assets are Class A and newly repositioned space. Standard Assets are all other office inventory. 32

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