3Q15 NEW YORK CITY OFFICE MARKET OVERVIEW

3Q15 NEW YORK CITY OFFICE MARKET OVERVIEW

3Q15 Office Market Overview New York City Table of Contents 3 Executive Summary 4 Manhattan Office Market Analysis 5 Leasing Activity by Market 6 Top Transactions 3Q15 7 Industries Driving Demand 8 Industries Driving New York City Employment 9 Industries Driving Leasing and Taking Rents 22 Manhattan Development Update 23 Commercial Development Pipeline 24 Commercial Development Horizon Map 25 World Trade Center Development Overview 26 Far West Side Development Overview 27 Midtown Development Overview 10 Manhattan Submarket Snapshot 11 Manhattan Submarket Matrix 12 Overall Average Asking Rent by Market 13 Taking Rent Trends 14 Taking Rent Corridor and Submarket Comparisons 15 Net Effective Rent Trends 16 Concessions for Select Submarkets for Long-Term Deals 17 Triple-Digit Taking Assets 18 Manhattan Top-Tier Trends 19 Midtown South Top-Tier Trends 20 Midtown Height Analysis 28 Brooklyn and Long Island City Office Market Analysis 29 Brooklyn Rent and Availability Trends 30 Brooklyn Office Development and Redevelopment Map 31 Brooklyn Office Development and Redevelopment Overview 32 Brooklyn Submarket Snapshot 33 Submarket Rent Comparison 34 Long Island City Rent and Availability Trends 35 Long Island City Transformation Statistics 21 Manhattan Asking Rents by Vintage 2

3Q15 Office Market Overview New York City Executive Summary The top end of the market continues to be highly active, despite an overall slow-down in leasing activity. Leasing slowed in the third quarter, with quarterly and year-to-date activity down over last year. TAMI and FIRE tenants continue to drive Manhattan, totaling 64% of year-to-date activity. Manhattan asking rents surpassed $70/SF for the first time since 2008, climbing to $70.99/SF in the third quarter, pushed up by landlords re-pricing assets and high-priced blocks of space coming onto the market in Midtown. Prime assets in select Brooklyn submarkets are approaching Downtown Manhattan asking rents. Midtown and Midtown South saw heightened activity in premium-priced space, pushing average taking rents up for the fourth consecutive year. Midtown South has seen the fastest rate of growth among Manhattan s major markets. As a result, the gap in rents between Midtown and Midtown South has shrunk since the prior market peak. Deal-making at the top end of the market continues to climb, particularly in Midtown South, which is on pace to record the largest volume of top-tier deals by year-end. Almost 14 MSF of development projects are planned and under construction in Manhattan, scheduled for completion by 2020. In Brooklyn and Long Island City, new construction and major renovations are alleviating supply constraints and creating new submarkets. 3

3Q15 MANHATTAN OFFICE MARKET ANALYSIS

3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 3Q15 Manhattan Office Market Analysis Leasing Activity by Market Manhattan (MSF) 14 13 12 11 10 9 8 7 6 5 4 3 2 1 0 8.7 MSF Year-to-date leasing totaled 26.6 MSF, slightly above the 10-year average of 25.8 MSF, but 18% below the same time last year. The third quarter of 2015 posted 7.7 MSF of leasing, the lowest quarterly total in two years. Midtown Midtown South Downtown Average Velocity 5

3Q15 Manhattan Office Market Analysis Top Transactions 3Q15 Company Address Market SF J. Walter Thompson 237 Park Avenue Midtown 270,000 Renewal TAMI Lease Type Industry The ten largest transactions in 3Q15 were all direct deals. Half were relocations. Knight Capital Group 300 Vesey Street Downtown 168,873 Direct New FIRE Horizon Media 75 Varick Street Midtown South 155,652 Expansion TAMI TAMI and FIRE drove top transactions and total leasing. Pandora 125 Park Avenue Midtown 103,515 LinkedIn 350 Fifth Avenue Midtown South 124,125 Renewal & Expansion Expansion TAMI TAMI Top transactions were spread evenly across Manhattan s three major markets. Ironshore 28 Liberty Street (formerly 1 Chase Manhattan Plaza) Downtown 101,958 Direct New FIRE WeWork 428 Broadway Midtown South 96,000 Direct New Gucci 195 Broadway Downtown 83,964 Direct New FIRE (home to TAMI tenants) Consumer Products Manufacturers - Apparel Moody s Investor Services 1 World Trade Center Downtown 75,000 Direct New FIRE Memorial Hospital for Cancer & Allied Diseases 1 Dag Hammarskjold Plaza Midtown 69,291 Direct New Health Care 6

3Q15 Manhattan Office Market Analysis Industries Driving Demand Leasing by Industry Tenants in the Market FIRE and TAMI tenants accounted for 64% of year-to-date activity. Professional Services 18% Other 10% 2015 YTD TAMI 30% Professional Services 12% Other 15% Total SF in the Market TAMI 25% Apparel & Retail 7% The industry make-up of tenants in the market suggests FIRE and TAMI tenants will continue to drive leasing. FIRE 34% Apparel & Retail 8% FIRE 41% 7

3Q15 Manhattan Office Market Analysis Industries Driving New York City Employment Employment by Industry 600,000 550,000 500,000 450,000 400,000 350,000 300,000 20% Growth Since 1Q10 9% Growth Since 1Q10 25% Growth Since 1Q10 TAMI sector employment growth since the trough of the recession has outpaced FIRE and Professional/Business Services. Despite this growth, TAMI employment has not yet caught up to either of the other sectors total employment. TAMI employment is currently was 42% below Professional/Business Services and 28% below FIRE. 250,000 2007 2008 2009 2010 2011 2012 2013 2014 2015 Professional and Business Services Finance, Insurance, and Real Estate Tech, Advertising, Media, and Information, New York State Department of Labor 8

16% 18% 20% 18% $43.02 $50.92 $51.56 $51.86 $50.89 $51.34 $56.84 $53.06 $58.78 $61.04 $56.40 27% $66.55 $62.48 $68.64 $63.92 30% 30% $72.63 $70.59 $80.14 35% 34% 3Q15 Manhattan Office Market Analysis Industries Driving Leasing and Taking Rents Leasing and Taking Rents by Industry Leasing by Industry Taking Rents by Industry 40% $100 30% $80 $60 20% $40 10% $20 0% 2013 2014 2015 YTD $0 2010 2011 2012 2013 2014 2015 YTD TAMI Professional Services FIRE TAMI Professional Services FIRE * 2014 TAMI rent increase partially attributed to Twitter, Sony and Samsung 9

3Q15 Manhattan Office Market Analysis Manhattan Submarket Snapshot PARK AVENUE PARK AVENUE Largest deal: Advertising agency J. Walter Thompson signed Manhattan s largest deal of the third quarter, renewing its 270,000 SF of space at 237 Park Avenue. Park Avenue availability fell to 9.3% in 3Q15, down from 12.3% in 3Q14. Citadel negotiated a 200,000 SF lease at 425 Park Avenue, which is expected to close in 4Q15 and include a recordhigh $300/SF for the penthouse. 6 TH AVE/ROCKEFELLER GRAND CENTRAL CENTER Largest deal: Pandora renewed and doubled its occupancy at 125 Park Avenue for a total of 103,515 SF. Two blocks of more than 300,000 SF came online this quarter: 367,585 square feet reached the market at 575 Fifth Avenue, and 302,118 SF became available at 605 Third Avenue. As a result, availability spiked to 15.4% in 3Q15 from 11.5% in 3Q14. CHELSEA PARK AVENUE SOUTH Largest deals: Houghton Mifflin expanded by 45,269 SF at 3 Park Avenue, while William Morris Endeavor added 44,000 SF at 11 Madison Avenue for a total occupancy of 114,425 SF. SL Green purchased 11 Madison Avenue in August for $2.6 billion, marking the largest single-building transaction in Manhattan s history. PARK UPPER AVENUE FIFTH / PLAZA DISTRICT Largest deal: MLB Players Association leased 21,762 SF at 12 E 49th Street. The addition of premium-priced space pushed Upper Fifth/Plaza asking rents up to $121.03/SF, a 14% increase from one year ago. Availability dropped 80 basis points to 12.3% from 13.1% this time last year. CHELSEA HUDSON SQUARE Largest deal: Horizon Media expanded its offices at 75 Varick Street by 155,652 SF for a total of 313,967 SF. One Kings Lane leased 51,576 SF at 315 Hudson Street, expanding by 46% from its previous offices at 205 Hudson Street. Asking rents jumped to $78.63/SF and finished up 8% year-over-year. PENN STATION Largest deal: LinkedIn added 124,125 SF in the Empire State Building for a total footprint of 280,000 SF. Two large blocks of space came online in August: 156,807 SF at 1 Penn Plaza and 106,574 SF at 2 Penn Plaza. Availability held stable at 7.6%, the lowest rate since mid-2008. GRAND CENTRAL WTC / WFC Largest deal: Knight Capital Group signed 168,873 SF at 300 Vesey Street to relocate from Jersey City. No large blocks hit the market in 3Q15. Asking rents increased 13% in five years, ending 3Q15 at $73.31/SF. LOWER 6 TH FINANCIAL DISTRICT AVENUE Largest deal: Ironshore took 101,958 SF at 28 Liberty Street in July, becoming the first major tenant to lease space in the building since Fosun acquired it in 2013. Availability fell 70 basis points to 13.2%. FINANCIAL TIMES DISTRICT SQUARE SOUTH Largest deal: WeWork signed 65,000 SF at 404 Fifth Avenue. Asking rents rose to $58.53/SF, surpassing the previous market peak reached in late 2007. 10

Average Asking Rent ($/SF) 3Q15 Manhattan Office Market Analysis Manhattan Submarket Matrix Total Availability Rate versus Overall Average Asking Rent Upper Fifth/ Plaza Park Avenue Sixth Avenue/Rock Ctr Hudson Square Grand Central Soho/Noho Lower Sixth Avenue Westside WTC $70.99 Village Eastside Flatiron/Union Square Park Avenue South Times Square South Chelsea Penn Station Financial City Hall/Insurance 11.3% Total Availability (%) MANHATTAN 11.3% $70.99 MIDTOWN 12.0% $83.24 Eastside 6.7% $71.18 Grand Central 15.4% $74.91 Park Avenue 9.3% $92.50 Sixth Avenue/Rock Ctr 11.6% $85.06 Upper Fifth/Plaza 12.3% $121.03 Westside 12.0% $71.82 MIDTOWN SOUTH 9.1% $62.98 Chelsea 3.4% $56.90 Flatiron/Union Square 11.5% $67.06 Hudson Square 12.0% $78.63 Lower Sixth Avenue 8.9% $70.87 Park Avenue South 7.7% $61.79 Penn Station 7.6% $56.02 Soho/Noho 6.5% $72.02 Times Square South 11.9% $58.53 Village 4.6% $60.66 DOWNTOWN 12.7% $56.72 City Hall/Insurance 9.1% $48.57 Financial 13.2% $52.03 WTC 16.4% $73.31 11

3Q15 Manhattan Office Market Analysis Overall Average Asking Rent by Market $95 Prior Peak (2008) to 3Q15 Percent Change Trough (2009) to 3Q15 Percent Change MT -9% MT +44% $85 MTS +11% DT +21% MTS +62% DT +57% $83.24 $75 $65 62% spread between MT and MTS asking rents 32% spread between MT and MTS asking rents $62.98 $55 $45 49% spread between MT and MTS asking rents $56.72 $35 $25 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Midtown Midtown South Downtown 12

3Q15 Manhattan Office Market Analysis Taking Rent Trends Average Annual Taking Rents ($/SF) $95 Prior Peak (2007/08) to 3Q15 Percent Change Trough (2009) to 3Q15 Percent Change MT -6% MT +33% $85 MTS +24% DT +11% MTS +67% DT +42% $76.01 $75 $65 55% spread between MT and MTS taking rents 18% spread between MT and MTS taking rents $64.63 $55 $49.96 $45 $35 $25 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 YTD Midtown Midtown South Downtown 13

3Q15 Manhattan Office Market Analysis Taking Rent Corridor and Submarket Comparisons Average taking rents for direct deals with five-year terms and longer By Corridor MIDTOWN Average Base Taking Rent ($/SF) Fifth Avenue $92.17 Lexington Avenue $86.34 Park Avenue* $78.63 Madison Avenue $77.29 Avenue of the Americas $79.20 Broadway $64.99 Third Avenue $61.59 MIDTOWN SOUTH Fifth Avenue $62.35 Park Avenue South $68.59 Broadway $66.28 West 20s $59.06 *The Park Avenue corridor base taking rent was drawn down on a weighted basis by the MetLife deal at 200 Park Avenue. Excluding this deal, the corridor records a weighted average $86.64/SF. By Submarket MIDTOWN Average Base Taking Rent ($/SF) Upper Fifth/Plaza $108.52 Park Avenue $93.53 Sixth Ave/ Rock Ctr. $77.61 Westside $68.16 Grand Central $64.21 Eastside $64.24 MIDTOWN SOUTH Flatiron/Union Square $70.82 NoHo/SoHo $67.29 Hudson Square $69.27 Park Avenue South $58.06 Penn Station $65.17 Times Square South $55.53 DOWNTOWN WTC/WFC $61.23 City Hall/Insurance $56.15 Financial $45.61 14

3Q15 Manhattan Office Market Analysis Net Effective Rent Trends Average annual net effective rents for direct deals with five-year terms and longer Midtown $50.34 $54.56 $60.81 $59.48 $61.37 $68.32 Midtown South $35.04 $38.14 $43.88 $46.19 $53.76 $55.76 Downtown $32.59 $33.09 $33.31 $38.50 $42.83 $41.70 Manhattan $43.89 $46.61 $52.81 $51.21 $54.40 $60.63 $0 $10 $20 $30 $40 $50 $60 $70 $80 2010 2011 2012 2013 2014 2015 YTD 15

3Q15 Manhattan Office Market Analysis Concessions for Select Submarkets for Long-Term Deals Concessions benchmarked for a standard ten-year term or longer, 10K SF and larger Average Work Amount ($/SF) Free Rent (Months) Upper Fifth/Plaza $76.04 Sixth Ave/Rock Ctr 11 Sixth Ave/Rock Ctr $72.92 Park Avenue 10 Grand Central $71.06 Grand Central 10 Park Avenue $71.00 Financial 10 WTC/WFC $69.72 Times Square South 10 Times Square South $69.38 Park Avenue South 10 Manhattan Overall 65.46 Manhattan Overall 9 Westside $63.95 Westside 9 Financial $62.83 Penn Station 9 Penn Station $61.70 Upper Fifth/Plaza 8 Flatiron $57.00 WTC/WFC 8 Park Ave South $55.00 Flatiron 8 City Hall $54.17 City Hall 8 $0 $10 $20 $30 $40 $50 $60 $70 $80 0 2 4 6 8 10 12 Manhattan Overall Downtown Midtown South Midtown Manhattan Overall Downtown Midtown South Midtown 16

3Q15 Manhattan Office Market Analysis Triple-Digit Taking Assets Number of buildings that signed $100+ taking rents each year 60 8 50 5 40 30 7 5 48 7 44 20 4 8 36 2 24 25 10 19 4 19 17 12 8 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015-YTD 1Q-3Q 4Q Buildings with $100+ Taking Rents in 2015 YTD 452 Fifth Avenue 640 Fifth Avenue 712 Fifth Avenue 725 Fifth Avenue 745 Fifth Avenue 767 Fifth Avenue 101 Park Avenue 280 Park Avenue 350 Park Avenue 375 Park Avenue 390 Park Avenue 400 Park Avenue 450 Park Avenue 499 Park Avenue 500 Park Avenue 510 Madison Avenue 535 Madison Avenue 540 Madison Avenue 590 Madison Avenue 650 Madison Avenue 667 Madison Avenue 1140 Avenue of the Americas 1251 Avenue of the Americas 1330 Avenue of the Americas 1345 Avenue of the Americas 1370 Avenue of the Americas 601 Lexington Avenue 888 Seventh Avenue 250 West 55th Street 40 West 57th Street 65 East 55th Street 10 East 53rd Street 12 East 49th Street 9 West 57th Street 51 Astor Place 770 Broadway 17

3Q15 Manhattan Office Market Analysis Manhattan Top-Tier Trends Number of deals signed annually with taking rents over $75/SF 250 225 200 31 58 transactions with taking rents over $100/SF have been signed in the first three quarters of 2015, on pace to exceed the 2014 year-end total of 65. Activity in the $75/SF to $99.99/SF 175 150 125 100 75 50 25 0 42 34 47 21 18 16 51 42 17 12 48 40 26 24 30 2 1 159 18 16 99 97 86 76 92 98 100 47 49 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015-YTD $75.00 - $99.99 $100.00 - $124.99 + $125 range has begun to fall behind the pace of 2014, but has already surpassed every other year-end total in the past decade. 2015 YTD Taking Rents Over $75/SF By Industry FIRE TAMI Other Prof Svcs 18

3Q15 Manhattan Office Market Analysis Midtown South Top-Tier Trends Number of deals signed annually with taking rents over $60/SF 125 In Midtown South, 97 deals over 100 75 19 $60/SF have been signed in 2015 year-to-date. The market is on pace to record the largest volume of top-tier deals by year-end. 50 25 0 19 97 86 6 10 40 28 9 2 26 1 1 3 8 11 3 1 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015-YTD Some Midtown South trophy buildings have seen rent growth upwards of 50% this market cycle, including 770 Broadway, where top rents have grown by about $30/SF from the prior market peak. 1Q-3Q 4Q 19

3Q15 Manhattan Office Market Analysis Midtown Height Analysis 2015 YTD Weighted Average Taking Rents by Floor Height MIDTOWN MIDTOWN TROPHY Tower Floors 30+: $101.11/SF Tower Floors 30+: $143.26/SF Mid-Rise Floors 16-30: $75.01/SF Mid-Rise Floors 16-30: $107.86/SF Base Floors 2-15: $67.28/SF Base Floors 2-15: $99.61/SF 20

3Q15 Manhattan Office Market Analysis Manhattan Asking Rents by Vintage Average Asking Rent by Decade of Construction ($/SF) Pre-1950 1950-1959 1960-1969 1970-1979 1980-1989 1990-1999 2000-2009 2010-2019 $57.94 $74.58 $79.37 $73.08 $68.31 $88.81 $90.12 $102.35 Select Buildings with Current Availability 30 Rockefeller 1271 AoA 200 Park 601 Lexington 599 Lexington 450 Lexington 1 Bryant 7 Bryant 75 Rockefeller 575 Lexington 277 Park 810 Seventh 101 Park 420 Fifth 222 E. 41st 390 Madison 1 Park 300 Park 280 Park 800 Third 12 E. 49th 712 Fifth 300 Madison 425 Park 1271 AoA 375 Park 299 Park 9 W. 57th 535 Madison 152 W. 57th 7 WTC 11 Times Sq. 500 Fifth 390 Park 399 Park 622 Third 590 Madison 1177 AoA 1745 Broadway 510 W. 22nd 405 Lexington 380 Madison 110 E. 59th 1114 AoA 667 Madison 145 W. 57th 3 Times Sq. 860 Washington 237 Park 650 Madison 767 Fifth 1133 AoA 725 Fifth 1540 Broadway 505 Fifth 1 WTC 75 Varick 660 Madison 1290 AoA 1211 AoA 65 E. 55th 546 Fifth 620 Eighth 3 WTC 11 Madison 717 Fifth 605 Third 1221 AoA 1540 Broadway 4 Times Sq. 4 WTC 444 Madison 150 E. 42nd 777 Third 1251 AoA 225 Liberty 101 AoA Hudson Yards 40 Wall 110 William 28 Liberty (1CMP) 1633 Broadway 200 Liberty One North End 1 Manhattan West 21

3Q15 MANHATTAN DEVELOPMENT UPDATE

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 3Q15 Manhattan Development Update Commercial Development Pipeline Manhattan (MSF) 16 14 12 10 2014 837 Washington Street 1 WTC 2015 7 Bryant Park 430 West 15th Street 860 Washington Street 2016 10 Hudson Yards 510 West 22nd Street 2017 390 Madison Avenue 55 Hudson Yards 2018 3 WTC 425 Park Avenue 2019 1 Manhattan West 30 Hudson Yards 2020 One Vanderbilt Avenue TBD 50 Hudson Yards 2 WTC 2 Manhattan West 3 Hudson Boulevard Tishman Speyer Tower 341-347 Madison Avenue 8 6 New Construction 84.2 MSF Expected Delivery 13.8 MSF Potential Delivery 13.2 MSF 4 2 0 23

3Q14 Manhattan Development Update FAR WEST SIDE 4b 5 1 3 HUDSON BOULEVARD 341-347 MADISON AVENUE 4a 3b 3c 5 3a 7 BRYANT PARK MANHATTAN WEST 3d 2 4a 425 PARK AVENUE 4b 450 WEST 33rd STREET ONE VANDERBILT AVENUE 2 3a 390 MADISON AVENUE 55 HUDSON YARDS 3b 1 3d 3c Retail space 10, 30 & 50 HUDSON YARDS WORLD TRADE CENTER AND DOWNTOWN 2 WTC 1 1 WTC Memorial 2 3 4 3 WTC 4 WTC WTC Transportation Hub

3Q15 Manhattan Development Update WORLD TRADE CENTER PORT AUTHORITY OF NY/NJ, DURST 1 World Trade Center 2 World Trade Center SILVERSTEIN PROPERTIES 3 World Trade Center 1 2 3 4 4 World Trade Center 1 2 8 5 3,000,000 SF 2,800,000 SF 2,500,000 SF 2,300,000 SF 6 7 4Q 2014 TBD (2020 pending completed deal with anchor) 2018 2013 Completed Planned Under Construction Completed 3 104 stories +80 stories 80 stories 72 stories Signed Condé Nast, Moody s, High 5 Games, xad, and others News Corp. & 21st Century Fox signed an LOI Signed GroupM Signed MediaMath, Morningstar, IEX, and public sector tenants 4 INFRASTRUCTURE AND AMENITIES WTC Retail at 5 Fulton Center 6 7 Transportation 8 Brookfield Place Hub Westfield World Trade Retail 2014 2014-2015 2015-2016 2015 Completed Completed Under Construction Under Construction Transit hub for nine subway lines serving 300,000 daily riders 200,000 SF of shopping and dining, completed in phases from 2014-2015. Calatrava-designed transit hub for the NJ PATH and retail 365,000 SF of retail in towers 3, 4, concourses, and the WTC Transportation Hub 25

3Q15 Manhattan Development Update FAR WEST SIDE Rendering not yet available THE RELATED COMPANIES 10 Hudson Yards BROOKFIELD PROPERTIES 5 Manhattan West 450 West 33rd St MITSUI FUDOSAN, OXFORD, RELATED 55 Hudson Yards THE RELATED COMPANIES 30 Hudson Yards BROOKFIELD PROPERTIES 1 Manhattan West BROOKFIELD PROPERTIES 2 Manhattan West THE MOINIAN GROUP 3 Hudson Boulevard 1 2 3 4 5 6 7 8 TISHMAN SPEYER THE 509 West 34th Street 9 RELATED COMPANIES 50 Hudson Yards 1,700,000 SF 1,800,000 SF 1,300,000 SF 2,600,000 SF 2,100,000 SF 2,100,000 SF 1,800,000 SF 2,850,000 SF 3,300,000 SF 2016 2016 (Renovation) 2017 2019 2019 TBD TBD (2019 pending anchor tenant) Under Construction Planned Under Construction Under Construction Planned Planned Planned Planned Planned 52 stories 16 stories 50 stories 84 stories 67 stories 67 stories each 66 stories 61 stories 62 stories Signed Coach, L Oréal, SAP, VaynerMedia Signed Chase Digital Media Signed Boies, Schiller & Flexner INFRASTRUCTURE AND AMENITIES Signed Time Warner, including HBO, CNN, Warner Bros. Signed Skadden Arps Mixed-use development possible Mixed-use development possible 7 8 TBD Project in early stages of planning TBD Project in early stages of planning 7 Train Extension to 34th Street East Platform Over Rail Yards 15 Hudson Yards: Residential 35 Hudson Yards: Residential, Hotel, Retail 3 9 Completed 2018 TBD TBD Under Construction Under Construction Planned Mixed-use development possible 4 2 5 6 1 26

Fifth Avenue Second Avenue 3Q15 Manhattan Development Update MIDTOWN 59th Street Rendering not yet available Rendering not yet available 3 BANK OF CHINA 7 Bryant Park L&L HOLDING, RREEF 390 Madison Avenue L&L HOLDING COMPANY 425 Park Avenue SL GREEN One Vanderbilt Avenue 1 2 3 4 5 MTA 341-347 Madison Ave MILSTEIN PROPERTIES 335 Madison Avenue 470,521 SF 1,000,000 SF 650,000 SF 1,800,000 SF 900,000 SF max 1,800,000 SF max 2015 2017 2018 2020 TBD TBD Completed Renovation Under Construction Planned Proposed Proposed 6 30 stories 32 stories 35+ stories 65-67 stories NA NA Bank of China will occupy 40% of the building L&L will restack the building to alter height and bulk Owners finalizing a deal with Citadel EAST MIDTOWN REZONING Signed TD Bank. Demolition planned for 2016 Owner seeking a developer Owner considering redevelopment for office or hotel use INFRASTRUCTURE 2 The Vanderbilt Corridor The City approved rezoning of the Vanderbilt Corridor including zoning applications for One Vanderbilt. The initiative will increase the potential for office development in exchange for public improvements and TDRs. Greater East Midtown The City is also exploring a more comprehensive rezoning of Greater East Midtown. A stakeholder committee is developing a set of principles that will shape the rezoning effort. Second Avenue Subway- Phase I LIRR East Side Access 2017 2022 Construction Construction 5 6 4 The City approved zoning applications (ULURP) in May 2015. The stakeholder group is scheduled to release recommendations in 2015. Phase I runs from 96th to 63rd Street Connects the LIRR to Grand Central 1, NYC Department of City Planning 37th Street 27

3Q15 BROOKLYN AND LONG ISLAND CITY OFFICE MARKET ANALYSIS

3Q15 Brooklyn and Long Island City Office Market Analysis Dumbo and Downtown Brooklyn Trends Overall Average Asking Rent and Availability $45 $40 $35 $30 12% 10% 8% 6% Average asking rents reached $43.79/SF, surpassing the 10-year average by 42%. In 2015, Frog Design, a division of Time, Inc., and Milk Studios signed deals to relocate to Brooklyn from Manhattan, joining NADAP and Paycom in an early trend of Manhattan-based tenants moving to or expanding in the borough. $25 4% $20 2% 3Q05 3Q06 3Q07 3Q08 3Q09 3Q10 3Q11 3Q12 3Q13 3Q14 3Q15 Average Asking Rent (Price/SF) Availability (%) 29

3Q15 Brooklyn Office Development and Redevelopment 25 Kent Avenue 68 Ferris Street Empire Stores Dumbo Heights Dumbo 422 Fulton Street 41 Flatbush Avenue Navy Yard Building 3 Domino Sugar Factory Dock 72 29 Ryerson Street GMC Building 128 87 Wythe Ave Williamsburg Bushwick 215 N. Moore Street 121 Morgan Avenue 66-80 Third Avenue Building 77 333 Johnson Avenue 455 Jefferson Street Industry City Sunset Park Dumbo 95 Evergreen Ave Sunset Park Navy Yard Williamsburg Bushwick Other Projects Whale Square

3Q15 Brooklyn Office Development and Redevelopment Overview Submarket INDUSTRY CITY / SUNSET PARK DUMBO OTHER PROJECTS 422 Fulton Street Downtown Brooklyn Size TBD Tishman Speyer Owner/ Developer Building Address Size (SF) Year Open Project Type Status Anchor Tenants Jamestown Properties, Belvedere Capital, Angelo Gordon Industry City 32nd to 41st Street Madison Realty Capital Whale Square 14 53rd Street 6,000,000 405,416 In phases starting 2015 2015-2016 Redevelopment Underway Time, Inc., MakerBot, Brooklyn Nets Redevelopment Planned Building to be re-tenanted Dumbo Heights 117 Adams St. Kushner Companies, LIVWRK, RFR Realty Dumbo Heights 77 Sands St. Dumbo Heights 55 Prospect St. Dumbo Heights 81 Prospect St. Dumbo Heights 175 Pearl St. Midtown Equities Empire Stores 55 Water St. 184,000 225,000 255,000 95,000 204,000 387,000 2015 2015 2015 2015 2015 2015 Redevelopment Redevelopment Redevelopment Redevelopment Redevelopment Redevelopment Completed Completed Completed Completed Completed Underway Etsy Alexis Bittar Frog Design WeWork Seeking an anchor tenant West Elm 29 Ryerson Street Clinton Hill 215K SF Madison Realty Capital 68 Ferris Street Red Hook 1.2 MSF Estate Four 66-80 Third Avenue Gowanus 80K SF LIVWRK 41 Flatbush Avenue Fort Greene 225K SF Quinian Dev Group, BLT NAVY YARDS WILLIAMSBURG BUSHWICK Rendering not yet available Rendering not yet available Brooklyn Navy Yard Development Corp. Boston Properties, Rudin Management Heritage Equity Two Trees Management Cayuga Capital Normandy, Royalton, Sciame Heritage Equity Savanna, Hornig Capital Princeton Holdings, Bruman Realty Lincoln Property Group GMC Building 128 Building 77 Building 3 Dock 72 25 Kent Avenue Domino Sugar Factory 87 Wythe Avenue 333 Johnson Avenue 215 N. Moore St. 95 Evergreen Avenue 121 Morgan Avenue 455 Jefferson Street 215,000 1,100,000 700,000 675,000 2015 2017 2017 2018 Redevelopment Redevelopment Redevelopment New Construction Underway Underway Planned Planned 400,000 600,000 (max) 100,000 2017 TBD TBD New Construction Redevelopment New Construction Planned Planned Planned 285,000 SF 170,000 165,000 100,000 122,700 2017 2017 2016 TBD 2016 Redevelopment TBD Redevelopment Redevelopment Redevelopment Planned Planned Planned Planned Planned 31

3Q15 Brooklyn and Long Island City Office Market Analysis Brooklyn Submarket Snapshot 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 Brighton Beach Greenpoint Williamsburg Bushwick Prospect Park South Flatbush Midwood Bedford Stuyvesant Crown Heights Lefferts Gardens Sheepshead Bay Manhattan Beach East Flatbush Marine Park Flatlands Brownsville BK Marine Park Gerritsen Beach Canarsie Bergen Beach Mill Basin Barren Island Cypress Hills East New York Jamaica Bay DOWNTOWN BROOKLYN Total Inventory: 15,985,404 SF Availability Rate: 3.2% Average Asking Rent, Prime Assets: $46.74/SF Average Asking Rent, Standard Assets: $39.92/SF YTD Absorption: 50,562 SF Recent Significant Transaction: Tishman Speyer bought the top floors and air rights of 422 Fulton Street from Macy s for $170 million with plans to develop 10 floors of high-end office space. Macy s will consolidate retail on lower floors. DUMBO Total Inventory: 3,166,659 SF Availability Rate: 18.3% Average Asking Rent, Prime Assets: $54.09/SF Average Asking Rent, Standard Assets: $32.00/SF YTD Absorption: 17,742 SF Recent Significant Transaction: Frog Design signed 27,000 square feet at 55 Prospect Street in June with plans to relocate from Manhattan s Hudson Square. There is a $10.65/SF spread in asking rents for Dumbo Prime assets. Prime Assets are Class A and newly repositioned space. Standard Assets are all other office inventory. SUNSET PARK Total Inventory: 6,000,000 SF Direct Average Asking Rent: $27.50/SF Recent Significant Transaction: Time, Inc., signed 52,700 square feet at Industry City for tech and creative functions. BROOKLYN NAVY YARD Total Inventory: 2,875,330 SF Direct Average Asking Rent: $37.00/SF Recent Significant Transaction: Eight fashion and creative tenants signed leases at the Navy Yard in 3Q15, taking a total 36,387 SF. Developers of Dock 72 (new supply due in 2018) are asking top Brooklyn rents, which will push the submarket average up when added to the market. WILLIAMSBURG / BUSHWICK Total Inventory: 1,532,155 SF Availability Rate: 26.9% Direct Average Asking Rent: $51.65/SF YTD Absorption: 12,833 SF Recent Significant Transaction: Adidas announced plans to sign 20,000 square feet above Brooklyn Brewery at 118 N. 11th Street to house its design studio. 32

3Q15 Brooklyn and Long Island City Office Market Analysis Brooklyn and Long Island City Submarket Rent Comparison Average Asking Rents ($/SF) $90 $83.24 Long Island City remains a discount $80 over Midtown for value-driven tenants that seek proximity to that market, $70 $60 $50 $46.74 $51.65 $54.09 $56.72 $62.98 with average asking rents for prime space in Long Island City $45.89/SF less than Midtown overall. Tenants making a value play from $40 $37.00 $37.35 Midtown South and Downtown into $30 $20 $10 $27.50 Brooklyn s prime assets in Dumbo find a shallow rent reduction, with asking rents for prime Dumbo assets $2.63/SF lower than Downtown overall. $0 Sunset Park Prime Brooklyn Navy Yard Prime Long Island City 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. Standard Assets are all other office inventory. 33

3Q15 Brooklyn and Long Island City Office Market Analysis Long Island City Trends Overall Average Asking Rent and Availability $35 $30 20% 16% Premium-priced conversion space pushed asking rents to an all-time high of $32.90/SF, up from $32.63/SF the prior quarter and $29.25/SF the same time last year. $25 $20 12% 8% Macy s signed to relocate its photography studio from Downtown Brooklyn to the Factory Building, taking 150,000 square feet. $15 4% $10 0% 3Q05 3Q06 3Q07 3Q08 3Q09 3Q10 3Q11 3Q12 3Q13 3Q14 3Q15 Average Asking Rent (Price/SF) Availability (%) 34

3Q15 Brooklyn and Long Island City Office Market Analysis Long Island City Transformation Statistics 8 subway lines and the Long Island Rail Road serve Long Island City. There are 4.9 million workers within a 60-minute commute of Court Square, exceeding Fulton Center (4.4 million) and Union Square (4.5 million), and comparable to Penn Station and Grand Central (5 million each). ACCESS TO WORKERS RESIDENTIAL GROWTH 34,500 residents live in Long Island City, up 18% in the last 5 years. There are 22,500 new residential units in the construction pipeline. Millennials comprise 27% of Long Island City population, a greater percentage than Manhattan (21%), and New York City (17%). 23% of total office inventory (2.5 MSF) has been repositioned in the last 3 years. Another office and retail project totaling 595,000 SF is under construction, scheduled for delivery in 2016. IMPROVED OFFICE INVENTORY AMENITIES 26 new hotels are in the construction pipeline. There has been a recent increase in retail amenities, including coffee houses, gourmet restaurants and nightlife options. Long Island City includes major cultural institutions like MoMA PS1 and Socrates Sculpture Park, Regional Plan Association, Long Island City Partnership, US Census Bureau, ESRI 35

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