8.5 X 11 Corporate 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 22 Manhattan Development Update

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

Leasing Activity by Market Manhattan (MSF)

14  Year-to-date leasing totaled 26.6 13 MSF, slightly above the 10-year 12 average of 25.8 MSF, but 18% below 11 the same time last year. 10

9 8.7 MSF  The third quarter of 2015 posted 7.7 8 MSF of leasing, the lowest quarterly

7 total in two years. 6

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

Midtown Midtown South Downtown Average Velocity

Source: Newmark Grubb Knight Frank Research

| 5 3Q15 Manhattan Office Market Analysis

Top Transactions 3Q15

Lease  The ten largest transactions in Company Address Market SF Industry Type 3Q15 were all direct deals. Half

J. Walter Thompson 237 Park Avenue Midtown 270,000 Renewal TAMI were relocations.

Knight Capital Group 300 Vesey Street Downtown 168,873 Direct New FIRE  TAMI and FIRE drove top

Horizon Media 75 Varick Street Midtown South 155,652 Expansion TAMI transactions and total leasing.

Renewal & Pandora 125 Park Avenue Midtown 103,515 TAMI  Top transactions were spread Expansion evenly across Manhattan’s three Expansion LinkedIn 350 Fifth Avenue Midtown South 124,125 TAMI major markets.

28 Liberty Street (formerly Ironshore Downtown 101,958 Direct New FIRE 1 Chase Manhattan Plaza)

FIRE WeWork 428 Broadway Midtown South 96,000 Direct New (home to TAMI tenants)

Consumer Products Gucci 195 Broadway Downtown 83,964 Direct New Manufacturers - Apparel

Moody’s Investor Services 1 World Trade Center Downtown 75,000 Direct New FIRE

Memorial Hospital for Cancer & 1 Dag Hammarskjold Plaza Midtown 69,291 Direct New Health Care Allied Diseases

Source: Newmark Grubb Knight Frank Research

| 6 3Q15 Manhattan Office Market Analysis

Industries Driving Demand

 FIRE and TAMI tenants accounted Leasing by Industry Tenants in the Market for 64% of year-to-date activity.

Other Other 10%  The industry make-up of tenants in 15% TAMI the market suggests FIRE and TAMI 25% Professional tenants will continue to drive leasing. Services TAMI 18% 30% Professional Services Total SF 12% in the 2015 YTD Market Apparel & Retail 7%

Apparel & Retail FIRE 8% 34% FIRE 41%

Source: Newmark Grubb Knight Frank Research

| 7 3Q15 Manhattan Office Market Analysis

Industries Driving New York City Employment Employment by Industry

600,000  TAMI sector employment growth 20% Growth since the trough of the recession has Since 1Q10 550,000 outpaced FIRE and

Professional/Business Services. 500,000  Despite this growth, TAMI 9% Growth Since 1Q10 employment has not yet caught up to 450,000 either of the other sectors’ total

400,000 employment. TAMI employment is currently was 42% below

Professional/Business Services and 350,000 25% Growth Since 1Q10 28% below FIRE.

300,000

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

Source: Newmark Grubb Knight Frank Research, New York State Department of Labor

| 8 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

35% $80

30% 34%

$80.14

30% 30%

$72.63

$60

27%

$70.59

$68.64

$66.55

$63.92

$62.48

20% $61.04

$58.78

$56.84

$56.40

$53.06

20%

$51.86 $51.56

$40 $51.34

$50.92

$50.89

18%

16% $43.02

10% $20

0% $0 2013 2014 2015 YTD 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

Source: Newmark Grubb Knight Frank Research

| 9 3Q15 Manhattan Office Market Analysis

Manhattan Submarket Snapshot

PARK AVENUEPARK AVENUE 6TH AVE/ROCKEFELLERGRAND CENTRAL CENTER CHELSEAPARK AVENUE SOUTH  Largest deal: Advertising agency J.  Largest deal: Pandora renewed and  Largest deals: Houghton Mifflin Walter Thompson signed Manhattan’s doubled its occupancy at 125 Park expanded by 45,269 SF at 3 Park largest deal of the third quarter, Avenue for a total of 103,515 SF. Avenue, while William Morris Endeavor renewing its 270,000 SF of space at  Two blocks of more than 300,000 SF added 44,000 SF at 11 Madison 237 Park Avenue. came online this quarter: 367,585 Avenue for a total occupancy of  Park Avenue availability fell to 9.3% in square feet reached the market at 575 114,425 SF. 3Q15, down from 12.3% in 3Q14. Fifth Avenue, and 302,118 SF became  SL Green purchased 11 Madison  Citadel negotiated a 200,000 SF lease available at 605 Third Avenue. Avenue in August for $2.6 billion, at 425 Park Avenue, which is expected  As a result, availability spiked to 15.4% marking the largest single-building to close in 4Q15 and include a record- in 3Q15 from 11.5% in 3Q14. transaction in Manhattan’s history. high $300/SF for the penthouse.

PARKUPPER AVENUE FIFTH / PLAZA DISTRICT CHELSEA HUDSON SQUARE PENN STATION  Largest deal: MLB Players Association  Largest deal: Horizon Media expanded  Largest deal: LinkedIn added 124,125 leased 21,762 SF at 12 E 49th Street. its offices at 75 Varick Street by SF in the Empire State Building for a  The addition of premium-priced space 155,652 SF for a total of 313,967 SF. total footprint of 280,000 SF. pushed Upper Fifth/Plaza asking rents  One Kings Lane leased 51,576 SF at  Two large blocks of space came online up to $121.03/SF, a 14% increase from 315 Hudson Street, expanding by 46% in August: 156,807 SF at 1 Penn Plaza one year ago. from its previous offices at 205 Hudson and 106,574 SF at 2 Penn Plaza. Street.  Availability dropped 80 basis points to  Availability held stable at 7.6%, the 12.3% from 13.1% this time last year.  Asking rents jumped to $78.63/SF and lowest rate since mid-2008. finished up 8% year-over-year.

GRAND CENTRALWTC / WFC LOWER 6THFINANCIAL AVENUE DISTRICT FINANCIALTIMES DISTRICT SQUARE SOUTH  Largest deal: Knight Capital Group  Largest deal: Ironshore took 101,958  Largest deal: WeWork signed 65,000 signed 168,873 SF at 300 Vesey Street SF at 28 Liberty Street in July, SF at 404 Fifth Avenue. to relocate from Jersey City. becoming the first major tenant to lease  Asking rents rose to $58.53/SF,  No large blocks hit the market in 3Q15. space in the building since Fosun surpassing the previous market peak acquired it in 2013. reached in late 2007.  Asking rents increased 13% in five years, ending 3Q15 at $73.31/SF.  Availability fell 70 basis points to 13.2%. Source: Newmark Grubb Knight Frank Research

| 10 3Q15 Manhattan Office Market Analysis

Manhattan Submarket Matrix Total Availability Rate versus Overall Average Asking Rent MANHATTAN 11.3% $70.99 MIDTOWN 12.0% $83.24 Upper Fifth/ Plaza Eastside 6.7% $71.18 Grand Central 15.4% $74.91 Park Avenue 9.3% $92.50 Park Avenue Sixth Avenue/Rock Ctr 11.6% $85.06

Sixth Avenue/Rock Ctr Upper Fifth/Plaza 12.3% $121.03 Westside 12.0% $71.82 Hudson Square Grand Central MIDTOWN SOUTH 9.1% $62.98 ($/SF) ($/SF) Soho/Noho Lower Sixth Avenue Westside WTC Chelsea 3.4% $56.90 $70.99 Flatiron/Union Square 11.5% $67.06 Village Eastside Flatiron/Union Square Park Avenue South Hudson Square 12.0% $78.63 Times Square South Lower Sixth Avenue 8.9% $70.87 Park Avenue South 7.7% $61.79 Chelsea Penn Station Financial Average Asking Asking Average Rent Penn Station 7.6% $56.02 City Hall/Insurance 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 11.3% Total Availability (%) WTC 16.4% $73.31 Source: Newmark Grubb Knight Frank Research

| 11 3Q15 Manhattan Office Market Analysis

Overall Average Asking Rent by Market

Prior Peak (2008) to 3Q15 Trough (2009) to 3Q15 $95 Percent Change Percent Change

MT -9% MT +44%

$85 MTS +11% MTS +62% $83.24 DT +21% DT +57%

$75 32% spread between 62% spread MT and MTS between asking rents $65 MT and MTS asking rents $62.98

$56.72 $55 49% spread between MT and MTS asking rents $45

$35

$25 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Midtown Midtown South Downtown

Source: Newmark Grubb Knight Frank Research

| 12 3Q15 Manhattan Office Market Analysis

Taking Rent Trends Average Annual Taking Rents ($/SF) Prior Peak (2007/08) to 3Q15 Trough (2009) to 3Q15 $95 Percent Change Percent Change MT -6% MT +33% MTS +24% MTS +67% $85 DT +11% DT +42% $76.01 $75 55% spread 18% spread between between MT and MT and MTS $64.63 MTS taking rents $65 taking rents

$55 $49.96

$45

$35

$25 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 YTD

Midtown Midtown South Downtown

Source: Newmark Grubb Knight Frank Research

| 13 3Q15 Manhattan Office Market Analysis

Taking Rent Corridor and Submarket Comparisons Average taking rents for direct deals with five-year terms and longer

Average Base Average Base By Corridor By Submarket Taking Rent ($/SF) Taking Rent ($/SF) MIDTOWN MIDTOWN Fifth Avenue $92.17 Upper Fifth/Plaza $108.52 Lexington Avenue $86.34 Park Avenue $93.53 Park Avenue* $78.63 Sixth Ave/ Rock Ctr. $77.61 Madison Avenue $77.29 Westside $68.16 Avenue of the Americas $79.20 Grand Central $64.21 Broadway $64.99 Eastside $64.24 Third Avenue $61.59 MIDTOWN SOUTH MIDTOWN SOUTH Flatiron/Union Square $70.82 Fifth Avenue $62.35 NoHo/SoHo $67.29 Park Avenue South $68.59 Hudson Square $69.27 Broadway $66.28 Park Avenue South $58.06 West 20s $59.06 Penn Station $65.17 Times Square South $55.53

*The Park Avenue corridor base taking rent was drawn DOWNTOWN down on a weighted basis by the MetLife deal at 200 Park WTC/WFC $61.23 Avenue. Excluding this deal, the corridor records a weighted average $86.64/SF. City Hall/Insurance $56.15 Financial $45.61

Source: Newmark Grubb Knight Frank Research

| 14 3Q15 Manhattan Office Market Analysis

Net Effective Rent Trends Average annual net effective rents for direct deals with five-year terms and longer

$50.34 $54.56 $60.81 Midtown $59.48 $61.37 $68.32

$35.04 $38.14 $43.88 Midtown South $46.19 $53.76 $55.76

$32.59 $38.50 $33.09 Downtown $33.31 $42.83 $41.70

$43.89 $46.61 $52.81 Manhattan $51.21 $54.40 $60.63

$0 $10 $20 $30 $40 $50 $60 $70 $80

2010 2011 2012 2013 2014 2015 YTD

Source: Newmark Grubb Knight Frank Research

| 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

Source: Newmark Grubb Knight Frank Research

| 16 3Q15 Manhattan Office Market Analysis

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

| 17 3Q15 Manhattan Office Market Analysis

Manhattan Top-Tier Trends Number of deals signed annually with taking rents over $75/SF  58 transactions with taking rents over

250 $100/SF have been signed in the first

three quarters of 2015, on pace to 225 exceed the 2014 year-end total of 65. 31 200 • Activity in the $75/SF to $99.99/SF

175 34 42 range has begun to fall behind the 47 21 pace of 2014, but has already 150 18 surpassed every other year-end total 125 51 16 12 48 40 in the past decade. 42 17 24 100 26 30 159 2015 YTD Taking Rents Over 75 2 1 $75/SF By Industry 18 16 50 99 97 98 100 TAMI 86 92 Other 76 25 47 49 Prof Svcs 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015-YTD

$75.00 - $99.99 $100.00 - $124.99 + $125 FIRE

Source: Newmark Grubb Knight Frank Research

| 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

$60/SF have been signed in 2015

year-to-date. 100 19  The market is on pace to record the

largest volume of top-tier deals by

75 year-end.

 Some Midtown South trophy

buildings have seen rent growth 50 19 97 upwards of 50% this market cycle, 86 including 770 Broadway, where top 6 10 rents have grown by about $30/SF 25 40 from the prior market peak. 28 9 2 26 1 3 1 8 11 0 3 1 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015-YTD

1Q-3Q 4Q

Source: Newmark Grubb Knight Frank Research

| 19 3Q15 Manhattan Office Market Analysis

Midtown Height Analysis 2015 YTD Weighted Average Taking Rents by Floor Height

MIDTOWN MIDTOWN TROPHY

Tower Tower Floors 30+: $101.11/SF Floors 30+: $143.26/SF

Mid-Rise Mid-Rise Floors 16-30: $75.01/SF Floors 16-30: $107.86/SF

Base Base Floors 2-15: $67.28/SF Floors 2-15: $99.61/SF

Source: Newmark Grubb Knight Frank Research

| 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

Source: Newmark Grubb Knight Frank Research

| 21 3Q15 MANHATTAN DEVELOPMENT UPDATE 3Q15 Manhattan Development Update

Commercial Development Pipeline 2014 837 Washington Street 2018 3 WTC Manhattan (MSF) 1 WTC 425 Park Avenue

2015 7 Bryant Park 2019 1 Manhattan West 16 430 West 15th Street 30 Hudson Yards 860 Washington Street 2020 One Vanderbilt Avenue 14 2016 10 Hudson Yards 510 West 22nd Street TBD 50 Hudson Yards 2 WTC 12 2017 390 Madison Avenue 2 Manhattan West 55 Hudson Yards 3 Hudson Boulevard Tishman Speyer Tower 10 341-347 Madison Avenue

8 New Expected Potential Construction Delivery Delivery 84.2 MSF 13.8 MSF 13.2 MSF 6

TBD

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

Source: Newmark Grubb Knight Frank Research

| 23 3Q14 Manhattan Development Update

FAR WEST SIDE

4b 5 4a 341-347 7 BRYANT PARK MADISON 1 3d MANHATTAN WEST AVENUE 3b 3 HUDSON 3c 4a BOULEVARD 2 5 425 PARK 3a 4b AVENUE ONE 450 WEST VANDERBILT rd 33 STREET AVENUE 2

390 MADISON 55 HUDSON AVENUE 3b YARDS 3a 1

3c Retail space 10, 30 & 50 HUDSON YARDS

WORLD TRADE CENTER AND DOWNTOWN

2 WTC 1 2

Memorial 3 1 WTC 4 WTC Transportation Hub

3 WTC 4 WTC 3Q15 Manhattan Development Update

WORLD TRADE CENTER

1 2 PORT AUTHORITY SILVERSTEIN PROPERTIES OF NY/NJ, DURST 5 1 World 2 World 3 World 4 World 8 1 Trade Center 2 Trade Center 3 Trade Center 4 Trade Center 3,000,000 SF 2,800,000 SF 2,500,000 SF 2,300,000 SF 6 7 TBD (2020 pending 4Q 2014 2018 2013 completed deal with anchor) 3 Completed Planned Under Construction Completed

104 stories +80 stories 80 stories 72 stories Signed Condé Nast, News Corp. & Signed MediaMath, 4 Moody’s, High 5 Games, 21st Century Fox Signed GroupM Morningstar, IEX, and xAd, and others signed an LOI public sector tenants

INFRASTRUCTURE AND AMENITIES WTC Retail at Westfield World 5 Fulton Center 6 7 Transportation 8 Brookfield Place Trade Retail Hub 2014 2014-2015 2015 - 2016 2015

Completed Completed Under Construction Under Construction 365,000 SF of retail in Transit hub for nine 200,000 SF of shopping and Calatrava-designed towers 3, 4, concourses, subway lines serving dining, completed in phases transit hub for the NJ and the WTC 300,000 daily riders from 2014 - 2015. PATH and retail Transportation Hub

Source: Newmark Grubb Knight Frank Research

| 25 3Q15 Manhattan Development Update

FAR WEST SIDE

Rendering not yet available

MITSUI FUDOSAN, THE RELATED BROOKFIELD THE RELATED BROOKFIELD BROOKFIELD THE THE RELATED OXFORD, TISHMAN SPEYER COMPANIES PROPERTIES COMPANIES PROPERTIES PROPERTIES MOINIAN GROUP COMPANIES RELATED 10 Hudson 5 Manhattan West 55 Hudson 30 Hudson 1 Manhattan 2 Manhattan 3 Hudson 509 West 50 Hudson 1 Yards 2 450 West 33rd St 3 Yards 4 Yards 5 West 6 West 7 Boulevard 8 34th Street 9 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 TBD (2019 pending 2016 2016 (Renovation) 2017 2019 2019 TBD TBD TBD 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, Signed Chase Digital Signed Boies, Schiller Signed Time Warner, Signed Skadden Mixed-use Mixed-use Project in early Project in early SAP, VaynerMedia Media & Flexner including HBO, CNN, Arps development development stages of planning stages of planning Warner Bros. possible possible INFRASTRUCTURE AND AMENITIES 7 8

7 Train Extension East Platform 15 Hudson Yards: 35 Hudson Yards: to 34th Street Over Rail Yards Residential Residential, Hotel, Retail 3 9

Completed 2018 TBD TBD Mixed-use development Under Construction Under Construction Planned possible 4 5 2 6

Source: Newmark Grubb Knight Frank Research 1

| 26 3Q15 Manhattan Development Update

MIDTOWN

59th Street

Rendering Rendering not yet not yet available available 3

L&L HOLDING, L&L HOLDING MILSTEIN BANK OF CHINA SL GREEN MTA RREEF COMPANY PROPERTIES 7 Bryant 390 Madison 425 Park One Vanderbilt 341-347 335 Madison 1 Park 2 Avenue 3 Avenue 4 Avenue 5 Madison Ave 6 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

30 stories 32 stories 35+ stories 65-67 stories NA NA

Bank of China will L&L will restack the Owners finalizing a Signed TD Bank. Owner seeking Owner considering occupy 40% of the building to alter deal with Citadel Demolition planned a developer redevelopment for

building height and bulk for 2016 office or hotel use Fifth Avenue Fifth 2 Avenue Second EAST MIDTOWN REZONING INFRASTRUCTURE

The Vanderbilt Greater Second Avenue LIRR 5 Corridor East Midtown Subway- Phase I East Side Access The City approved rezoning of the The City is also exploring a more 6 Vanderbilt Corridor including zoning comprehensive rezoning of Greater 2017 2022 applications for One Vanderbilt. The East Midtown. A stakeholder committee 4 initiative will increase the potential for is developing a set of principles that will office development in exchange for shape the rezoning effort. Construction Construction public improvements and TDRs.

The City approved zoning applications The stakeholder group is scheduled Phase I runs from Connects the LIRR to (ULURP) in May 2015. to release recommendations in 2015. 96th to 63rd Street Grand Central 1

Source: Newmark Grubb Knight Frank Research, 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 12%  Average asking rents reached

$43.79/SF, surpassing the 10-year

average by 42%. $40 10%

 In 2015, Frog Design, a division of

Time, Inc., and Milk Studios signed $35 8% deals to relocate to Brooklyn from

Manhattan, joining NADAP and

Paycom in an early trend of $30 6% 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 (%)

Source: Newmark Grubb Knight Frank Research

| 29 3Q15 Brooklyn Office Development and Redevelopment

25 Kent Avenue

87 Wythe Ave Domino Sugar Factory Empire Stores Williamsburg Navy Yard

Dumbo Dock 72 Bushwick Dumbo Heights 422 Fulton 29 Ryerson Street Building 3 Street 41 Flatbush Avenue 215 N. Moore 121 Morgan 68 Ferris Street Street Avenue GMC Building 128

Building 77 66-80 Third Avenue 333 Johnson Avenue 455 Jefferson Street

95 Evergreen Ave Sunset Park Industry City Dumbo 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 29 Ryerson Street Jamestown Properties, Owner/ Madison Realty Midtown Clinton Hill Belvedere Capital, Kushner Companies, LIVWRK, RFR Realty Developer Capital Equities 215K SF Angelo Gordon Madison Realty Capital Building Industry City Whale Square Dumbo Heights Dumbo Heights Dumbo Heights Dumbo Heights Dumbo Heights Empire Stores 68 Ferris Street Address 32nd to 41st Street 14 53rd Street 117 Adams St. 77 Sands St. 55 Prospect St. 81 Prospect St. 175 Pearl St. 55 Water St. Red Hook 1.2 MSF Size (SF) 6,000,000 405,416 184,000 225,000 255,000 95,000 204,000 387,000 Estate Four 66-80 Third Avenue Year Open In phases starting 2015 2015-2016 2015 2015 2015 2015 2015 2015 Gowanus 80K SF Project Type Redevelopment Redevelopment Redevelopment Redevelopment Redevelopment Redevelopment Redevelopment Redevelopment LIVWRK Status Underway Planned Completed Completed Completed Completed Completed Underway 41 Flatbush Avenue Fort Greene Anchor Time, Inc., MakerBot, Building to be Seeking an Etsy Alexis Bittar Frog Design WeWork West Elm 225K SF Tenants Brooklyn Nets re-tenanted anchor tenant Quinian Dev Group, BLT

NAVY YARDS WILLIAMSBURG BUSHWICK

Rendering Rendering not yet not yet available available

Boston Normandy, Savanna, Princeton Lincoln Heritage Two Trees Cayuga Heritage Brooklyn Navy Yard Development Corp. Properties, Rudin Royalton, Hornig Holdings, Property Equity Management Capital Equity Management Sciame Capital Bruman Realty Group GMC Building Building 77 Building 3 Dock 72 25 Kent Domino Sugar 87 Wythe 333 Johnson 215 N. 95 Evergreen 121 Morgan 455 Jefferson 128 Avenue Factory Avenue Avenue Moore St. Avenue Avenue Street

215,000 1,100,000 700,000 675,000 400,000 600,000 (max) 100,000 285,000 SF 170,000 165,000 100,000 122,700

2015 2017 2017 2018 2017 TBD TBD 2017 2017 2016 TBD 2016

Redevelopment Redevelopment Redevelopment New Construction New Construction Redevelopment New Construction Redevelopment TBD Redevelopment Redevelopment Redevelopment

Underway Underway Planned Planned Planned Planned Planned Planned Planned Planned Planned Planned

Source: Newmark Grubb Knight Frank Research

| 31 3Q15 Brooklyn and Long Island City Office Market Analysis

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

Source: Newmark Grubb Knight Frank Research Prime Assets are Class A and newly repositioned space. Standard Assets are all other office inventory.

| 32 3Q15 Brooklyn and Long Island City Office Market Analysis

Brooklyn and Long Island City Submarket Rent Comparison Average Asking Rents ($/SF)

$90  Long Island City remains a discount $83.24 over Midtown for value-driven tenants $80 that seek proximity to that market,

$70 with average asking rents for prime $62.98 space in Long Island City $45.89/SF $60 $56.72 $54.09 $51.65 less than Midtown overall. $50 $46.74  Tenants making a value play from

$40 $37.00 $37.35 Midtown South and Downtown into

Brooklyn’s prime assets in Dumbo $30 $27.50 find a shallow rent reduction, with

$20 asking rents for prime Dumbo

assets $2.63/SF lower than $10 Downtown overall.

$0 Sunset Park Brooklyn Long Island Downtown Williamsburg / Dumbo Downtown Midtown Midtown Prime Navy Yard City Brooklyn Bushwick Prime Manhattan South Overall Prime Prime Prime Prime Overall Overall

Prime Assets are Class A and newly repositioned space. Standard Assets are all other office inventory.

Source: Newmark Grubb Knight Frank Research

| 33 3Q15 Brooklyn and Long Island City Office Market Analysis

Long Island City Trends Overall Average Asking Rent and Availability

$35 20%  Premium-priced conversion space

pushed asking rents to an all-time

high of $32.90/SF, up from $30 16% $32.63/SF the prior quarter and

$29.25/SF the same time last year.

$25 12%  Macy’s signed to relocate its

photography studio from Downtown

Brooklyn to the Factory Building, $20 8% 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 (%)

Source: Newmark Grubb Knight Frank Research

| 34 3Q15 Brooklyn and Long Island City Office Market Analysis

Long Island City Transformation Statistics

 8 subway lines and the Long Island  34,500 residents live in Long Rail Road serve Long Island City. Island City, up 18% in the last 5 years.  There are 4.9 million workers within a 60-minute commute  There are 22,500 new residential of Court Square, exceeding Fulton units in the construction pipeline. Center (4.4 million) and Union  Millennials comprise 27% of Square (4.5 million), and comparable Long Island City population, to Penn Station and Grand Central a greater percentage than (5 million each). Manhattan (21%), and New York ACCESS TO RESIDENTIAL City (17%). WORKERS GROWTH

IMPROVED  23% of total office inventory (2.5 OFFICE AMENITIES  26 new hotels are in the MSF) has been repositioned in the INVENTORY construction pipeline. last 3 years.  There has been a recent increase

 Another office and retail project in retail amenities, including totaling 595,000 SF is under coffee houses, gourmet restaurants construction, scheduled for delivery and nightlife options. in 2016.  Long Island City includes major cultural institutions like MoMA PS1 and Socrates Sculpture Park

Source: Newmark Grubb Knight Frank Research, Regional Plan Association, Long Island City Partnership, US Census Bureau, ESRI

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Newmark Grubb Knight Frank has implemented a proprietary database and our tracking methodology has been revised. With this expansion and refinement in our data, there may be adjustments in historical statistics including availability, asking rents, absorption and effective rents.

Newmark Grubb Knight Frank Research Reports are also available at www.ngkf.com/research

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