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///////////////////////////////////////// ////////////Ventura///////////////// Q4 | 2018 ///////////////////////////////////////// Market Report ////////// //////////// ///////// Ventura County Office /////////////////////////////////////////

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///////////////////////////////////////// Although all information is furnished regarding for sale, rental or financing is from sources deemed reliable, such information has not been verified and no express representation is made nor is any to be implied as to the accuracy thereof, and it is submitted subject to errors, omissions, changes of price, rental or other conditions, prior sale, lease or financing, or withdrawal without notice.

www.daumcommercial.com | O N C O R I N T E R N A T I O N A L MARKET Office 2018 Ventura County REPORT Q4

MARKET ACTIVITY KEY TAKE AWAYS ECONOMIC OUTLOOK

MARKET D

Direct Vacancy Net Absorption • Vacancy Rate: Falls in Q4, but still above historic U.S. Employment U6 Rate average. 13.4% +181,114 SF • Net Absorption: Highest level of 2018 3.9% 7.6% • Office Supply: Minimal new supply in market. • Sales: Pricing decreased in Q4 as well as volume. V • Asking Rents: Plateauing, but slight increase in Q4.

Overall Vacancy Gross Absorption Interest Rate Changing GDP 13.7% 485,930 SF 4.6% (30 year fixed) 2.8%

ECONOMIC OUTLOOK

• Interest Rates: The Fed is anticipating two (2) Under Construction Rental Rates (FSG) Port Traffic Y/Y Δ NYSE Performance hikes in 2019; increasing borrowing costs. 27,046 SF $2.22 • Trade: Tensions remain with China. USMCA still 1.5% -14.4% awaiting congressional ratification. • Stock Market: Increased volatility, but corporate fundamentals remain strong • Oil: Crude Oil dropped 39% in Q4. Prices Sale Price Change Deal Volume expected to remain low due to over-supply. Inflation Change 10 Yr. - 2 Yr. Spread Reduced transportation costs should benefit -17.0% -80.6% markets further away from ports. +1.9% 15 BPS

EXPERIENCE IN A CHANGING MARKET ///////////////////////////////////////// @DAUMCOMMERCIAL

Although all information is furnished regarding for sale, rental or financing is from sources deemed reliable, such information has not been verified and no express representation is made nor is any to be implied as to the accuracy thereof, and it is submitted subject to errors, omissions, changes of price, rental or other conditions, prior sale, lease or financing, or withdrawal without notice. www.daumcommercial.com | O N C O R I N T E R N A T I O N A L Q 18.00% 10.00% 12.00% 14.00% 16.00% 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 900,000 0.00% 2.00% 4.00% 6.00% 8.00% Overall vacancy falls but remains above historic average historic above remains but falls vacancy Overall GROSS ABORPTION SLIG ABORPTION GROSS 0 Direct Vacancy Direct 4 2001 2001

Gross AbsorptionGross SF Total 2002

2002 /////////

2003 2003 2004 2004 2005

2005 VACANCY OVERALL 2006 2006

Market Report

2007 Total Vacancy

2007 AVERAGE ABOVE HISTORIC HTLY 2008 2008 orother conditions, prior sale, lease orfinancing, orwithdrawal withoutnotice. expressrepresentation is nor made isany be to implied as the to accuracy thereof, and itis submitted subjecterrors, to om Althoughall information is furnishedregarding forrental sale, or financingis fromsources deemed reliable, suchinformati 2009 2009 2010 2010 2011 2011 Historical Historical Average 2012 2012

2013 2013 Average Historical

2014 2014 2015 2015 2016 2016 2017 2017

2018 2018 -400,000 -300,000 -200,000 -100,000 $0.20 $0.70 $1.20 $1.70 $2.20 $2.70 100,000 200,000 300,000 400,000 500,000 0 2001 2002 2001

2002 Net AbsorptionDirect SF Office Gross Office RentDirectGross

2003

2003 ABSORPTION HIGHE NET

www.daumcommercial.com 2004 ASKING RENTS RELATIV RENTS ASKING 2004 2005 2005 2006 2006 2007 2007 2008 2008 2009 2009 2010 2010 2011 2011 ST IN 2018 ST IN 2012 FLATELY 2012

2013 OverallVacancy OverallVacancy 2013 |

O N C O R I N T E R N A T IL T OA A N RN E T N I R O C N O on 2014 2014 iss hasnot been verified and no

2015 2015 ions,changes of price, rental 2016 2016 2017 2017 2018 2018 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% 18.00% 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% 18.00%

Ventura | Office //// Q4 2018 Q 100,000 200,000 300,000 400,000 500,000 600,000 700,000 $100,000,000 $150,000,000 $200,000,000 $250,000,000 $300,000,000 $350,000,000 $400,000,000 $450,000,000 $50,000,000 0 Med. PricePSFMed. Village Westlake Agoura Hills SALE PRICES CONTINUE TO PUSH HISTORIC LE PUSH TO CONTINUE SALE HISTORIC PRICES 4

Leasing Activity SF Direct $0 2001 2002 /////////

2001 2002 2003

2003 2004 DEC ACTIVITY LEASING 2004 2005 2005 2006 2006 Market Report 2007 Simi/Moorpark Calabasas 2007 2008 2008 orother conditions, prior sale, lease orfinancing, orwithdrawal withoutnotice. expressrepresentation is nor made isany be to implied as the to accuracy thereof, and itis submitted subjecterrors, to om Althoughall information is furnishedregarding forrental sale, or financingis fromsources deemed reliable, suchinformati 2009 2009

2010 Leasing Activity SF Sublet 2011 2010 2012 2011 LINES 2013 2012 2014

2013 2015 Oxnard Oxnard Plain Thousand Oaks 2016 2014

2017 VELS 2015 2018 2016

$0.00 $50.00 $100.00 $150.00 $200.00 $250.00 $300.00 $350.00 2017 2018 1,400,000 1,000,000 1,200,000 200,000 400,000 600,000 800,000 LACK OF NEW SUPPLY H SUPPLY NEW OF LACK 0

2001 2002

2003 www.daumcommercial.com 2004 2005 Under Construction SF 2006 2007 INDERING MARKET GROWTH MARKET INDERING 2008 2009 2010 2011 2012 |

O N C O R I N T E R N A T IL T OA A N RN E T N I R O C N O on

iss 2013 hasnot been verified and no ions,changes of price, rental 2014 2015 2016

2017 2018

Ventura | Office //// Q4 2018 Q $0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 SQUARE FOOT BREAKDOW FOOT SQUARE Agoura 4 $2.24

Hills ///////// 34%

Calabasas 12% $2.78 Average Office RentAverage Office FSG AVERAGE RENT PSF RENT AVERAGE

Thousand Market Report $2.10 Oaks 8% N 22% orother conditions, prior sale, lease orfinancing, orwithdrawal withoutnotice. expressrepresentation is nor made isany be to implied as the to accuracy thereof, and itis submitted subjecterrors, to om Althoughall information is furnishedregarding forrental sale, or financingis fromsources deemed reliable, suchinformati –

21,895,429 SF MARKET SIZE SF MARKET 21,895,429 Westlake Village $2.70 11% 13%

Moorpark Valley/ $1.99 Simi

Oxnard Plain Oxnard Greater Moorpark / Village Westlake Oaks Thousand Calabasas Hills Agoura Greater Oxnard $2.03 Plain

12.00% 14.00% 16.00% 18.00% 10.00% $10,000,000.00 $12,000,000.00 0.00% 2.00% 4.00% 6.00% 8.00% $2,000,000.00 $4,000,000.00 $6,000,000.00 $8,000,000.00 12.68% $0.00

Agoura Direct Vacancy Rate 12.80%

Hills 10.25% www.daumcommercial.com Agoura

Hills BREAKDOWN VACANCY VOLUME BREAKDOWN VOLUME 10.85% Sales Volume Calabasas

Calabasas 13.04%

Thousand 13.37% Thousand Oaks Oaks Overall VacancyOverall Rate 12.43%

Westlake Price PSF

Westlake 13.08% Village Village |

O N C O R I N T E R N A T IL T OA A N RN E T N I R O C N O on

iss Simi Valley/ hasnot been verified and no 16.84%

ions,changes of price, rental Moorpark Simi Valley/ Moorpark Greater Oxnard Plain 14.16%

$0.00 $50.00 $100.00 $150.00 $200.00 $250.00 $300.00 $350.00 Greater 14.37% Oxnard Plain

Ventura | Office //// Q4 2018 Q 10% 12% 14% 16% 18% -10% *2.8%for 4Q18 based onFed Reserve Bank ofAtlanta "GDP Now"Forecast 0% 2% 4% 6% 8% 10% -8% -6% -4% -2% 0% 2% 4% 6% 8% '00 '00 4

'01 '01 '02 ///////// '02

'03 '03 Recession '04 '04 Real GDPReal '05 '05 '06

'06 UNEMPLOYMENT Market Report '07 '07 '08 '08 orother conditions, prior sale, lease orfinancing, orwithdrawal withoutnotice. expressrepresentation is nor made isany be to implied as the to accuracy thereof, and itis submitted subjecterrors, to om Althoughall information is furnishedregarding forrental sale, or financingis fromsources deemed reliable, suchinformati GDP U6 RateU6 '09 '09 '10 Average Average GDPReal

'10 '11 '11

'12 '12 '13 Official Rate '13

'14 '14 '15 '15 '16 '16 '17 '17 '18

'18 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 4,000,000 4,500,000 5,000,000 500,000 Mining and Mining Logging Construction Manufacturing Wholesale Trade Retail Trade and Warehousing Transportation Utilities Information Financial Activities Professional and Business Services and Health Education Services Leisure and Hospitality Services Other Government 0 2009 3Q 2010 2Q

Imports www.daumcommercial.com EMPLOYMENT BY BY INDUSTRY EMPLOYMENT 1Q 2011 4Q PORT ACTIVITY PORT 2012 3Q Exports 0 2013 2Q 1 2.5 7 8 25 16 1Q 17 23.3 2014

Empties 50 4Q 47.8 53.1 2015 75 3Q | 69

O N C O R I N T E R N A T IL T OA A N RN E T N I R O C N O on iss 100 hasnot been verified and no 2016 88 2Q ions,changes of price, rental 125 1Q 2017 150 4Q 140 143 147 2018 175 3Q

National Economic Overview //// Q4 2018 Q -150% -100% -2% -1% 100% 150% -50% 0% 1% 2% 3% 4% 5% 6% 50% 0% '01 '00 4

'02 Recession '01 '03 ///////// '02

'04 '03 Less FoodLess Energy & Recession STOCK MARKET PREFORM STOCK MARKET '05 '04 '06 '05 '06 '07

DOW JonesDOW Market Report '07 '08 '08 '09 orother conditions, prior sale, lease orfinancing, orwithdrawal withoutnotice. expressrepresentation is nor made isany be to implied as the to accuracy thereof, and itis submitted subjecterrors, to om Althoughall information is furnishedregarding forrental sale, or financingis fromsources deemed reliable, suchinformati CPI '09 '10

'10 '11 Fed InflationFed Target AllCPIItem '11 '12 S&P 500 '12 ANCE '13 '13 '14

'14

'15 '15 '16 '16 NASDAQ '17 '17 '18 '18 -1.0% -0.5% 10% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% '00 Federal Funds Rate Funds Federal Recessions '00 '01 '01 '02 '02 '03 '03

'04 '04 www.daumcommercial.com '05 Recession '05 '06 '06 INTEREST RATES INTEREST '07 YIELD CURVE YIELD '07 '08 '08 '09 '09 '10 '10 Bond Spread Bond '11 30-Yr. Fixed Rate Rate Mortgage Fixed 30-Yr. Rates Treasury 10-Yr '11

'12 '12 '13 '13 |

'14 O N C O R I N T E R N A T IL T OA A N RN E T N I R O C N O '14 on iss hasnot been verified and no '15 '15 ions,changes of price, rental '16 '16 '17 '17 '18 '18

National Economic Overview //// Q4 2018 Q or saleor by the landlord or for isbeingleasespace offered for occupancy byfor Theuser. a vacantSpace that and ready is Sublet Vacant W/ SF Total fromdirectly sale or landlord. the isbeingleasespace offered for occupancy byfor Theuser. a vacantSpace that and ready is SF Direct Vacant & square feet 30,000 greater. tenant buildings that office are Non Methodology & TERMINOLOGY METHODOLOGY existing buildingsexisting only. total footagesquare rentable for divided space sublease bythe Total vacant spaceand direct W/ Sublet Rate Vacancy only.buildings footagesquare existing for bythetotaldivided rentable from landlord owner) the or lease sale(vacantor for space Total space vacant direct Rate Direct Vacancy bythecurrentsublease tenant. - Owner occupied, multi occupied,Owner 4

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Market Report

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orother conditions, prior sale, lease orfinancing, orwithdrawal withoutnotice. expressrepresentation is nor made isany be to implied as the to accuracy thereof, and itis submitted subjecterrors, to om Althoughall information is furnishedregarding forrental sale, or financingis fromsources deemed reliable, suchinformati

have granted not yet been construction has started but Planned for which buildings ConstructionUnder (moveouts). occupancy changes in the all subtracting negative (move occupancy and ins) changes all positive the in time, bysumming calculated periodgiven a over space of occupiedThe change net in Net Absorption time.period of certain leasedspace a over thesum activity, which is all of differs from absorption leasing vacated bytenants. Gross but not space occupied that is time, that space is counting periodgiven a over space of The occupied total in change Gross Absorption not included not included Renovated are buildings ofa Certificate Occupancy. 2018 andthe granted year construction completed in original New with buildings in2018 Completed not included. Planned are buildings ofa Certificate Occupancy.

310 90248 CA Gardena, 420 Suite Street, 190th W. 1025 BAY, SOUTH 562 91746 CA of Industry, City 100 N, Suite Pkwy. Crossroads 13181 CALIFORNIA VALLEY, GABRIEL SAN 661 91355 CA Valencia, 312 Suite Place, Westinghouse 28494 CALIFORNIA VALLEY, CLARITA SANTA 818 CA 91367 Hills, Woodland 201 Suite Boulevard, Burbank 21820 CALIFORNIA NORTH, ANGELES LOS 213 Angeles, CA 90017 Los 600 Suite Street, Figueroa 801 S. CALIFORNIA ANGELES, LOS DAUM OFFICESDAUM - - - 538 705 887 - - - 6700 6700 2299 3600

- 626 www.daumcommercial.com - 695

- 9101 9101

- 7244 7244

602 AZ 85016 Phoenix, 120 Avenue, Suite E. Highland 1702 ARIZONA PHOENIX 909 91764 CA Ontario, 5 Bldg. Boulevard, Empire E. Inland 3595 CALIFORNIA EMPIRE, INLAND 805 CA 93010 Camarillo, 105 Drive, Suite Daily 751 CALIFORNIA BARBARA, SANTA & VENTURA 949 92660 CA Beach, Newport 950 Suite Boulevard, 4400 MacArthur CALIFORNIA COUNTY, ORANGE 562 90703 CA Cerritos, C Suite Drive, Corporate Cerritos 13810 MID ------957 980 987 724 207 COUNTIES, CALIFORNIA CALIFORNIA COUNTIES, - - - - - 7300 7300 1234 8866 1900 3300

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O N C O R I N T E R N A T IL T OA A N RN E T N I R O C N O on

iss hasnot been verified and no ions,changes of price, rental

Ventura | Office //// Q4 2018