DENVER Q3 2020

MARKET REPORT OFFICE

FULL-SERVICE COMMERCIAL REAL ESTATE SOLUTIONS Privately-Owned and Operated for Over 40 Years 303.321.5888 UNIQUEPROP.COM Denver Office

OFFICE MARKET REPORT

Market Key Statistics 2 Leasing 4 Rent 9 Construction 12 Under Construction Properties 14 Sales 16 Sales Past 12 Months 18 Economy 20 Market Submarkets 23 Supply & Demand Trends 27 Rent & Vacancy 29 Sale Trends 31

10/12/2020 Copyrighted report licensed to Unique Properties, Inc. - 1130503 Overview Denver Office

12 Mo Deliveries in SF 12 Mo Net Absorption in SF Vacancy Rate 12 Mo Rent Growth 1.2 M (2.7 M) 12.1% 1.9%

Denver has reclaimed about half of the jobs lost during office market less likely than in past years. That being April shutdowns, according to June data from the Bureau said, about 60% of space under construction was of Labor Statistics. The nonfarm unemployment rate available for lease near the end of 20Q1. compressed below 10%, outperforming the national average. At the start of 2020, Denver's unemployment Despite the chaos induced by the coronavirus, in mid- rate was below 3%, making it one of the tightest job March, the Colorado Economic Development markets in the country. Commission offered economic incentives to two companies considering an expansion in Denver. One of Oil price volatility has already forced a number of drillers the companies is a San Francisco-based tech startup. to shut their wells. When prices last plummeted below Combined, both firms could potentially add roughly 600 $30 per barrel in 2016, Denver felt the impact, but high-paying positions to the local economy. Downtown Denver received the brunt of the effects. The second quarter was Denver's worst quarterly Denver County has one of the nation's highest performance for absorption in more than a decade, and concentrations of jobs in the oil and gas industry, and the third quarter could be even worse. after oil plummeted to below $20/barrel in March, widespread layoffs could be around the corner. Several Denver's above-average concentration of office-using energy companies already announced significant layoffs jobs appears to have softened the blow to the local prior to the recent plunge in oil prices, including Whiting economy, as many office employees have the capability Petroleum, Occidental Petroleum, and Extraction Oil and to work from home. At the same time, many of Denver's Gas. Many of Denver's energy firms lease office space in oil and gas companies occupy large blocks of office the CBD, and during the last oil shock in 2016, the space in the CBD, which could lead to more volatility in submarket suffered rent losses as vacancies shot up by the office market. 300 basis points.

Denver, and greater Colorado as a whole, was one of With companies competing for talent, high-end office the biggest winners of the last expansion due to its space in burgeoning Downtown Denver has given robust workforce, quality of living, and relatively lower employers an edge in the past. Strong demand for 4 & 5 cost of doing business. Tech growth has made the Star space has driven the metro's healthy rent gains. difference for Denver's office market over the past Downtown submarkets are consistently on the decade, and this sector will be a harbinger of the future. leaderboard for rent growth: CBD, LoDo, and Platte River have been outperformers and have been favorites of Several substantial move-outs in early 2020 have put tech companies and other corporate tenants. upward pressure on vacancies, and the one-two punch of record-low oil prices and the novel coronavirus Speculative projects are still prevalent, although overall pandemic casts a cloud of uncertainty in the near term. deliveries are down considerably from cyclical highs On a positive note, the amount of office space under (2017–18). It is not uncommon for at least half of office construction has tapered off since its 2017 peak, which space under construction to be in core downtown would make an outsized supply-side shock to Denver's submarkets, which was the case in early 2020.

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KEY INDICATORS

Net Absorption Under Current Quarter RBA Vacancy Rate Market Rent Availability Rate Deliveries SF SF Construction 4 & 5 Star 75,217,890 14.0% $34.02 21.9% (286,660) 180,000 2,873,021 3 Star 72,610,046 11.9% $25.69 14.8% (20,862) 0 127,067 1 & 2 Star 32,230,968 8.3% $21.12 11.7% (46,229) 0 0 Market 180,058,904 12.1% $28.44 17.3% (353,751) 180,000 3,000,088

Historical Forecast Annual Trends 12 Month Peak When Trough When Average Average Vacancy Change (YOY) 2.0% 12.1% 12.6% 16.0% 2003 Q3 7.0% 2000 Q2 Net Absorption SF (2.7 M) 1,456,403 829,237 5,216,122 2000 Q4 (2,295,642) 2020 Q3 Deliveries SF 1.2 M 2,247,840 1,979,945 7,498,042 2001 Q1 500,954 2012 Q1 Rent Growth 1.9% 1.6% 1.2% 12.2% 2007 Q1 -10.2% 2009 Q4 Sales Volume $2.2 B $1.8B N/A $4.2B 2007 Q3 $341.5M 2009 Q4

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With large workplaces allowed to open at 50 percent of LoDo Submarket (Gates at 1144 Fifteenth in the CBD capacity as of May 4, office workers are returning to an and DaVita at 16 Chestnut in Platte River). For DaVita, environment conducive to social distancing practices. which occupied just over half of 1551 Wewatta, the move However, many will continue to work from home in the is part of a major expansion in the area as it leased coming months, giving tenants and landlords more time roughly 350,000 SF at 16 Chestnut. to ponder the long-term viability of a remote workforce. A host of startups have set up operations in the metro in Based on historical data since 2000, Denver's office recent years, but a major tech player is also expanding in market has never had three consecutive quarters of the metro. In 19Q4, Amazon moved into 100,000 SF negative absorption. But that streak could be broken in (25,000 SF was subleased) at 1515 Wynkoop in LoDo as 2020 as the market braces for a third quarter littered with it plans to house 400 employees. Two fast-growing tech major tenant move-outs. companies from the Bay Area are also expanding in the Denver market: Gusto (formerly Zen Payroll) announced Denver's office market entered 2020 on a high note. it will add 1,000 jobs over the next few years while Even with speculative construction continuing to put upping its office footprint by more than 60,000 SF at upward pressure on vacancies, demand was strong several locations, and Slack plans to hire over 500 enough to compress the vacancy rate to cyclical lows by employees at its new 80,000-SF office at 16 Chestnut. the end of 2019. About 1.2 million SF delivered, while roughly 1.8 million SF of office space was absorbed WeWork is all in on Downtown Denver. Dating back to during the year. 2018, the embattled co-working provider inked deals for more than 500,000 SF at eight new locations. But after a Last year's office deliveries were just a fraction of tallies failed IPO and the removal of its CEO, many are left in recent years. More than 3.5 million SF delivered in questioning whether WeWork can honor its lease 2018, and nearly 2.5 million SF was added in 2017. If commitments. The company backed out of a 56,000-SF demand tapers off in the coming quarters, supply-side lease at 1660 Linc at the end of 2019, and it's not pressure is not likely to be an outsized factor weighing impossible that more cancellations are coming. on fundamentals. At the same time, it's important to remember that The office market is also recovering from several WeWork accounts for less than 0.5% of all occupied significant move-outs in 20Q1. Most notably, TIC office space in the Denver area. Co-working tenants in vacated nearly 100,000 SF at Meridian Corporate Center general only account for about 1% of office space. And in Englewood in what was likely a consolidation move. even if the co-working concept proves unsustainable, TIC was acquired by Kiewit in 2008, and the latter is the impact may not be as large as most believe, building a 260,000-SF regional headquarters in Lone especially if tech tenants decide to jump on vacated Tree that is slated to deliver by 2021. In the interim, creative office spaces. Kiewit has a 170,000-SF space in Englewood that it occupied in 19Q1. Denver's energy sector exposure has impacted fundamentals in the past—particularly downtown, where LoDo remains one of Denver's premier office industry tenants are clustered. The submarket posted submarkets, and national tenants have shown a negative net absorption of 900,000 SF from 15Q2 willingness to pay top dollar for space here in the past. through 17Q3 (a period when crude oil prices dipped This was made clear when a rare, ultra-large block of below $40/barrel), while rents declined for the first time space was pounced on by VF Corp, which inked a deal this cycle. Sublet availabilities also rose sharply during for all 285,000 SF at 1551 Wewatta on a lease that runs this time, driven by oil and gas tenants. through 2030. The Fortune 260 company, which owns outdoor brands The North Face, JanSport, and Altra, The oversupply of oil coupled with a dramatic demand relocated its headquarters to Denver from Greensboro, slowdown has put Denver's energy firms in a precarious North Carolina. position. Several companies announced significant layoffs in recent quarters due to what were already The two locally headquartered tenants that vacated 1551 perceived as weaker oil prices. Whiting Petroleum, which Wewatta, Gates Corporation, and DaVita, moved into signed a lease for 135,000 SF at the Wells Fargo Center new construction projects, both on the border of the in the CBD in 2018 and took occupancy in 2019, laid off

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254 employees this past summer. In February 2020, plenty of talent in peripheral areas of the metro. Extraction Oil and Gas announced it would eliminate Cigna moved into 136,000 SF in the Colorado Blvd/I-25 20% of employee positions in the state, including jobs at Submarket in 19Q1; Lockheed Martin occupied 106,000 its downtown headquarters. A slew layoff SF in the Highlands Ranch Submarket in 19Q1; and tech announcements have followed in March and April. firm Conga settled into 88,000 SF in the Broomfield County Submarket in 19Q2. Major upcoming move-ins Suburban submarkets will continue to play a role in in suburban submarkets over the next 12 months include Denver's robust absorption trends. As downtown Newmont Mining taking 145,000 SF in 20Q4 in the submarkets have grown increasingly unaffordable and Denver Tech Center and Crocs occupying 88,000 SF in congested for employees, or no longer fit the lifestyle of Broomfield County in 20Q1. older millennials with families, companies have found

NET ABSORPTION, NET DELIVERIES & VACANCY

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VACANCY RATE

AVAILABILITY RATE

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12 MONTH NET ABSORPTION SF IN SELECTED BUILDINGS

Net Absorption SF Building Name/Address Submarket Bldg SF Vacant SF 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr 12 Month Western Union Campus Meridian 192,779 0 0 192,779 0 0 192,779 JAG Logistics Center at DEN Northeast Denver 180,000 40,000 0 0 0 140,000 140,000 Platte 15 Platte River 156,915 27,488 0 91,974 34,826 0 129,084 1144 Fifteenth CBD 672,000 110,900 25,312 74,075 0 0 115,085 ParkRidge Corporate Ctr Lone Tree 161,218 35,216 (35,216) 0 0 0 104,973 Westmoor Technology Park Northwest Denver 205,013 106,596 0 98,417 0 0 98,417 1701 S Lincoln St CBD 528,000 0 (3,500) (16,500) 1,000 114,800 97,104 Denver Tech Center Denver Tech Center 190,236 0 6,834 0 60,018 0 92,858 UC Health Offices Cherry Creek 89,000 0 0 0 89,000 0 89,000 ATRIA Broomfield County 88,427 0 0 88,293 0 0 88,293 Fitzsimons Innovation Community Aurora 117,000 41,245 77,384 (1,629) 0 0 75,755 Revolution 360 Platte River 171,000 96,000 0 0 75,000 0 75,000 3060 Brighton Blvd Platte River 70,000 0 0 70,000 0 0 70,000 The Vault CBD 106,231 4,800 0 12,403 0 20,330 68,037 Meridian Office Park Meridian 107,638 0 0 0 0 0 67,562 Rampart Center Inverness 66,800 0 0 0 66,800 0 66,800 Buell Public Media Center Platte River 60,000 0 0 60,000 0 0 60,000 Subtotal Primary Competitors 3,162,257 462,245 70,814 669,812 326,644 275,130 1,630,747 Remaining Denver Market 176,896,647 21,327,161 (373,882) (1,530,253) (1,659,070) (628,881) (4,306,265) Total Denver Market 180,058,904 21,789,406 (303,068) (860,441) (1,332,426) (353,751) (2,675,518)

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TOP OFFICE LEASES PAST 12 MONTHS

Building Name/Address Submarket Leased SF Qtr Tenant Name Tenant Rep Compa… Leasing Rep Company

ParkRidge Corporate Center Lone Tree 166,708 Q2 20 Lockheed Martin - CBRE

Mountain View Corp Center * Broomfield County 137,040 Q4 19 Danone - Newmark Knight Frank

EOS at Interlocken * Broomfield County 125,036 Q1 20 Gogo, Inc. - Newmark Knight Frank

Inverness Business Park * Inverness 99,797 Q2 20 ViaSat - -

Belleview Station Denver Tech Center 72,994 Q3 20 LogistiCare Solutions Kentwood Commercial Cushman & Wakefield

Century Park * Southeast C-470 72,269 Q2 20 United Launch Alliance Savills -

950 17th St * CBD 71,921 Q3 20 Liberty Oilfield Services - Newmark Knight Frank

Denver Tech Center Denver Tech Center 70,170 Q1 20 AECOM Cushman & Wakefield Newmark Knight Frank

3060 Brighton Blvd Platte River 70,000 Q4 19 VF Services LLC Cushman & Wakefield NAI Shames Makovsky

Majestic Commercenter SW DIA/Pena Blvd 66,722 Q4 19 Landmark Packaging - JLL

North Valley North Denver 59,838 Q1 20 - - Newmark Knight Frank

Waterview at Highland Pk Panorama/Highland Park 58,278 Q3 20 Lockheed Martin Savills -

Market Station LoDo 56,449 Q4 19 JPMorgan Chase CBRE Cushman & Wakefield

Peakview Tower Greenwood Village 55,348 Q4 19 Delta Dental of Colorado - JLL

Aurora City Center * Aurora 53,369 Q4 19 Empower High School Cresa -

Westmoor Technology Park Northwest Denver 51,854 Q4 19 - - JLL

Cornerstar Southeast 50,017 Q4 19 Urban Air Adventure Park Legend Partners David, Hicks & Lampert…

Gateway Park * East I-70/Montbello 50,000 Q1 20 ePlan Services, Inc. - -

Highland Park * Panorama/Highland Park 49,953 Q3 20 National Cattlemen's Beef… - Colliers International

9th & Colorado Glendale 48,415 Q2 20 - - Cushman & Wakefield

1701 S Lincoln St CBD 48,000 Q3 20 Wells Fargo RETECHS - -

Westmoor Technology Park Northwest Denver 46,563 Q4 19 - - JLL

1899 Wynkoop * LoDo 46,386 Q4 19 Comcast Savills Lincoln Property Comp…

1700 Broadway Office * CBD 45,778 Q2 20 Colorado Secretary of State JLL CBRE

1401 Lawrence CBD 44,078 Q1 20 Freshworks - CBRE

Meridian Int'l Bus Center Meridian 44,029 Q1 20 EN Engineering Savills Cushman & Wakefield

169 Inverness Dr W Inverness 41,868 Q4 19 United Healthcare JLL JLL

Sage Bldg CBD 40,470 Q4 19 Sage Hospitality - NAI Shames Makovsky

1755 Blake St LoDo 36,931 Q4 19 EF Education - Cushman & Wakefield

Wewatta Office Tower * LoDo 35,474 Q3 20 Dorsey & Whitney LLP CBRE Crestone Partners, LLC

Platte 15 Platte River 35,360 Q1 20 - - Newmark Knight Frank

ParkRidge Corporate Ctr Lone Tree 35,216 Q3 20 Kiewit Savills CBRE

ParkRidge Corporate Ctr Lone Tree 35,216 Q3 20 Cochlear Americas Savills CBRE

Palazzo Verdi Greenwood Village 33,373 Q4 20 - - Cushman & Wakefield

INOVA Corporate Center Inverness 32,638 Q3 20 - - Transwestern Real Est…

Market Station LoDo 31,400 Q4 19 Deloitte Digital Cushman & Wakefield Cushman & Wakefield

JAG Logistics Center at DIA SW DIA/Pena Blvd 31,200 Q3 20 Air General - Cushman & Wakefield

Orchard Falls * Greenwood Village 30,795 Q2 20 98.5 Kygo - Cushman & Wakefield

Meridian Int'l Bus Center Meridian 30,254 Q1 20 AECOM Cushman & Wakefield Cushman & Wakefield

Ridgeline Technology Center Highlands Ranch 29,891 Q4 19 Movement Mortgage - Avison Young Renewal

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At about $28.00 per SF, Denver's office space comes at the office market and rents. a substantial discount relative to other tech markets. In The last time oil prices dropped this low was in 2016, but the Bay Area, office rents are more than twice as much, the decline was not nearly as sharp as what occurred in and in Seattle and Austin, they are about 35% higher. March. During the last oil collapse, annual rent growth in Denver decelerated from nearly 5% in 2015 to just over Strong demand for office space in Denver kept rent 1% in 2016. The CBD Submarket, where energy tenants growth well above the national average last year. Annual are clustered, suffered rent losses for the only time gains were consistently at or above 4% in 2019, largely during the cycle. driven by downtown's tech-oriented submarkets. On the other hand, suburban submarkets that have largely been Volatile oil prices in 2019 led to a number of layoffs in overlooked by expanding tech tenants have had some of the energy sector, namely Whiting Petroleum's the weakest rent growth, including Denver Tech Center, elimination of 254 positions at the end of July. Whiting Greenwood Village, and Southwest Denver. moved into 135,000 SF at Wells Fargo Center in the CBD at the end of 2019. In February, before the most Denver's run of robust rent growth will likely come to an recent oil plunge, Extraction Oil and Gas announced it end due to the impact of the novel coronavirus and would lay off 20% of its workforce in the state, including volatile oil sector. In a market that has relied heavily on positions at its headquarters in the CBD. Denver's rent office demand from out-of-state companies looking to growth outperformed in 2019 despite headwinds from the expand, rents could suffer as the movement of people is oil sector, but market conditions have changed drastically restricted throughout the U.S. On the bright side, the in 2020. construction pipeline has moderated from highs in 2016–17, which should help minimize supply pressure on

MARKET RENT GROWTH (YOY)

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MARKET RENT PER SQUARE FEET

4 & 5 STAR EXPENSES PER SF (ANNUAL)

Market / Cluster Utilities Cleaning Insurance Taxes Other Total Denver $0.61 $1.17 $0.21 $5.66 $5.70 $13.35 Aurora $0.91 $1.19 $0.26 $3.06 $4.61 $10.03 Broomfield $0.62 $1.07 $0.22 $5.22 $4.96 $12.09 Clear Creek County $0.34 $0.46 $0.14 $1.34 $2.29 $4.57 Colorado Blvd/Glendale $0.68 $1.48 $0.27 $4.51 $5.87 $12.81 Downtown $0.63 $1.24 $0.22 $7.56 $6.96 $16.61 Midtown $0.51 $1.09 $0.18 $4.48 $6.31 $12.57 North Denver $0.45 $0.97 $0.15 $4.82 $4.48 $10.87 Northeast Denver $0.57 $1.03 $0.18 $4.54 $4.68 $11.00 Northwest Denver $0.56 $0.99 $0.20 $4.65 $4.54 $10.94 Outlying Arapahoe County $0.73 $0.98 $0.31 $10.47 $3.87 $16.36 Outlying Douglas County $0.73 $0.98 $0.31 $4.91 $3.87 $10.80 Parker/Castle Rock $0.89 $1.20 $0.38 $3.58 $3.93 $9.98 Southeast Denver $0.56 $1.18 $0.18 $5.80 $5.71 $13.43 Southwest Denver $0.59 $1.02 $0.20 $2.21 $5.23 $9.25 West Denver $0.60 $0.86 $0.25 $5.14 $3.67 $10.52 Expenses are estimated using NCREIF, Trepp, IREM, and CoStar data using the narrowest possible geographical definition from Zip Code to region.

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3 STAR EXPENSES PER SF (ANNUAL)

Market / Cluster Utilities Cleaning Insurance Taxes Other Total Denver $0.49 $0.96 $0.14 $4.40 $3.80 $9.79 Aurora $0.83 $1.08 $0.11 $3.70 $3.29 $9.01 Broomfield $0.50 $0.99 $0.13 $5.03 $3.61 $10.26 Clear Creek County $0.44 $0.96 $0.13 $2.21 $3.91 $7.65 Colorado Blvd/Glendale $0.61 $1.30 $0.22 $5.34 $4.58 $12.05 Downtown $0.54 $1.09 $0.19 $4.88 $5.61 $12.31 Elbert County $0.35 $0.69 $0.09 $3.00 $2.73 $6.86 Midtown $0.46 $0.96 $0.17 $3.40 $4.54 $9.53 North Denver $0.44 $0.88 $0.12 $4.75 $3.34 $9.53 Northeast Denver $0.44 $0.85 $0.11 $4.69 $3.26 $9.35 Northwest Denver $0.44 $0.87 $0.11 $3.81 $3.13 $8.36 Outlying Arapahoe County $0.50 $0.85 $0.10 $6.22 $3.11 $10.78 Outlying Douglas County $0.38 $0.76 $0.10 $4.79 $2.98 $9.01 Park County $0.45 $0.89 $0.12 $1.57 $3.45 $6.48 Parker/Castle Rock $0.44 $0.88 $0.12 $5.52 $2.92 $9.88 Southeast Denver $0.45 $0.90 $0.11 $4.45 $3.85 $9.76 Southwest Denver $0.44 $0.88 $0.12 $4.39 $3.43 $9.26 West Denver $0.45 $0.89 $0.12 $3.72 $3.31 $8.49 Expenses are estimated using NCREIF, Trepp, IREM, and CoStar data using the narrowest possible geographical definition from Zip Code to region.

1 & 2 STAR EXPENSES PER SF (ANNUAL)

Market / Cluster Utilities Cleaning Insurance Taxes Other Total Denver $0.44 $0.64 $0.13 $4.07 $2.55 $7.83 Aurora $0.46 $0.51 $0.10 $2.77 $2.57 $6.41 Broomfield $0.40 $0.53 $0.10 $5.31 $1.84 $8.18 Clear Creek County $0.40 $0.55 $0.13 $1.23 $2.79 $5.10 Colorado Blvd/Glendale $0.46 $0.67 $0.16 $5.10 $3.47 $9.86 Downtown $0.51 $0.95 $0.18 $5.28 $3.65 $10.57 Elbert County $0.37 $0.51 $0.10 $2.27 $2.04 $5.29 Gilpin County $0.42 $0.59 $0.11 $0.93 $2.37 $4.42 Midtown $0.47 $0.81 $0.18 $4.22 $2.32 $8.00 North Denver $0.42 $0.55 $0.11 $4.71 $1.58 $7.37 Northeast Denver $0.43 $0.56 $0.11 $3.89 $2.03 $7.02 Northwest Denver $0.42 $0.60 $0.11 $4.32 $2.36 $7.81 Outlying Adams County $0.42 $0.59 $0.11 $2.47 $2.37 $5.96 Outlying Arapahoe County $0.40 $0.54 $0.10 $4.00 $2.84 $7.88 Outlying Douglas County $0.41 $0.56 $0.11 $3.76 $2.26 $7.10 Park County $0.42 $0.59 $0.11 $1.79 $2.38 $5.29 Parker/Castle Rock $0.40 $0.55 $0.10 $4.44 $2.24 $7.73 Southeast Denver $0.41 $0.53 $0.11 $3.85 $3.02 $7.92 Southwest Denver $0.44 $0.59 $0.11 $3.53 $2.17 $6.84 West Denver $0.41 $0.58 $0.11 $3.67 $2.44 $7.21 Expenses are estimated using NCREIF, Trepp, IREM, and CoStar data using the narrowest possible geographical definition from Zip Code to region.

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The Colorado Governor's stay-at-home order Not far away from Revolution 360, a 280,000-SF mixed- considered jobs in the construction industry as essential, use project in the RiNo district called The HUB was one which allowed developers to move forward with projects of the biggest deliveries of 2019. The HUB is steps away if they chose to do so. Deteriorating economic conditions from the rail station and is fully leased to tenants could keep upcoming groundbreakings on hold, and including HomeAdvisor, WeWork, and EverCommerce, speculative projects slated to deliver in 2020 must serving as a microcosm of Denver's fast-growing tech grapple with the uncertainty of demand in the near term. scene.

The unknown near and long term impact of social Co-working has acted as a significant source of demand distancing on office demand could make landlords of for new-construction in 4 & 5 Star buildings. In core recent deliveries more likely to pull the trigger on below- downtown offices constructed since 2015 or currently market lease deals in the coming months. Although the underway, co-working tenants have leased over 600,000 total SF currently under construction is below cyclical SF, roughly 20% of all leasing activity at these buildings. peaks, the percentage of speculative development is near 10-year highs. In early 2017, Patrinely Group and USAA Real Estate Company signaled that their Block 162 project was ready The expansion of Denver's light rail network has had to move ahead. Site work began around the start of major implications for office development. Outside of 2018, and the foundation was poured towards the end of Cherry Creek and Broomfield, every 100,000-plus-SF 18Q2, with a late-2020 or 2021 completion timeframe. office building constructed this cycle has been within one Located on the corners of California and 15th streets, it mile of a light rail station, and most are within half a mile. is being designed as a 30-story, 595,000-SF office Since 2013, around 40 light rail stations have opened, tower. The development is the first large speculative and more are under construction. While major suburban project in the core part of the CBD Submarket (as transit-oriented developments have largely been focused opposed to 1144 15th St. on the border of LoDo) since in well-established TOD submarkets in Denver's the early 1980s. Block 162 will likely serve as a southeastern corridor (where the light rail line opened in barometer for developers eying new projects as the 2006), developers are faced with an array of new economic environment begins to heal. potential TOD opportunities. Numerous speculative developments recently delivered Development in the past decade has been focused or are underway in the suburbs, with large projects downtown submarkets: CBD, LoDo, and Platte River, almost universally located near light rail stations. Fully home to the burgeoning RiNo neighborhood. Typically, at leased single-tenant properties such as those typical least half of Denver's construction pipeline is earlier in the cycle included the Charles Schwab campus concentrated in core downtown submarkets. in Lone Tree, the CoBank Center in Greenwood Village, the Denver Health Administration building in South One of the more notable projects in RiNo is Revolution Midtown, and the FirstBank building in West Denver. 360, a 170,000-SF spec office project near the 38th and Blake Light Rail station. Pre-pandemic, construction was One of the biggest projects in the pipeline, Kiewit's slated to complete in 2020, and WeWork committed to Regional HQ in Lone Tree, is slated to deliver 260,000 65,000 SF. The troubled co-working provider was SF near the Sky Ridge Light Rail station by 2021. Kiewit already on the ropes before the coronavirus, backing out was part of the redevelopment of Denver's heralded of a 56,000 SF lease at 1660 Linc at the end of 2019. Union Station and is also the primary contractor for the More lease cancellations could be in the offing as offices $1.2 billion I-70 infrastructure project. shutter due to social distancing measures.

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DELIVERIES & DEMOLITIONS

SUBMARKET CONSTRUCTION

Under Construction Inventory Average Building Size

No. Submarket Bldgs SF (000) Pre-Leased SF (000) Pre-Leased % Rank All Existing Under Constr Rank 1 CBD 2 639 64 10.0% 9 216,861 319,744 2 2 Lone Tree 2 392 392 100% 1 48,239 195,927 4 3 Denver Tech Center 1 385 189 49.1% 6 110,601 384,712 1 4 LoDo 2 330 154 46.6% 7 48,219 165,103 5 5 Northwest Denver 7 272 235 86.6% 4 14,867 38,846 10 6 Platte River 1 250 0 0% 10 45,318 250,402 3 7 Glendale 2 163 113 69.3% 5 44,708 81,533 6 8 Capitol Hill 2 146 38 25.9% 8 14,294 72,986 7 9 Parker/Castle Rock 2 115 113 98.5% 3 13,138 57,475 8 10 Cherry Creek 2 110 110 100% 1 27,156 54,945 9 All Other 6 198 62 31.6% 27,534 32,938 Totals 29 3,000 1,470 49.0% 32,618 103,451

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Properties Square Feet Percent of Inventory Preleased 29 3,000,088 1.7% 49.0%

UNDER CONSTRUCTION PROPERTIES

UNDER CONSTRUCTION

Property Name/Address Rating Bldg SF Stories Start Complete Developer/Owner Block 162 Patrinely Group, LLC 1 607,987 30 Jun 2018 Dec 2020 675 15th St Patrinely Group, LLC 6900 Layton Ave Prime West 2 384,712 15 Sep 2018 Nov 2020 Columbine Realty Inc Kiewit Regional HQ - Ph… Kiewit 3 260,121 5 Jun 2019 Jan 2021 Trainstation Cir Kiewit One Platte The Nichols Partnership, Inc. 4 250,402 5 Jan 2020 Feb 2022 1701 Platte St Shorenstein Properties LLC McGregor Square Office McGregor Square 5 203,406 11 Oct 2018 Jan 2021 1901 Wazee St McGregor Square Boulevard 1 One Confluent Development 6 139,065 3 Aug 2019 Nov 2020 Quebec St & Lowry Blvd Confluent Development Kiewit Regional HQ - Ph… Kiewit 7 131,733 4 Jun 2020 Jun 2021 Trainstation Cir Kiewit

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UNDER CONSTRUCTION

Property Name/Address Rating Bldg SF Stories Start Complete Developer/Owner Market Station Continuum Partners LLC 8 126,800 7 Jun 2018 Nov 2020 1601 Market St Continuum Partners LLC Parker Adventist Hospita… Med Development 9 110,000 5 Apr 2020 Jan 2021 9403 Crown Crest Blvd Lillibridge Healthcare Services, Inc. Saint Joseph Medical Off… Fidelis Realty Partners 10 106,572 5 Jun 2019 Nov 2020 1818 Ogden St SCL Health System Synergy Medical Center Hill Companies, LLC 11 104,000 5 Jun 2019 Nov 2020 500 E Hampden Ave Hill Companies, LLC 240 Saint Paul St BMC Investments Co, LLC 12 75,000 6 Jun 2020 Jun 2021 Clark Companies, Inc. LoHi Offices City Street Investors 13 57,433 3 Mar 2019 Nov 2020 2128 W 32nd Ave City Street Investors Ball Corporation - Buildi… Ball Corporation 14 46,500 4 Oct 2019 Nov 2020 W 108th Cir Ball Corporation Ball Corporation - Buildi… Ball Corporation 15 46,500 4 Oct 2019 Nov 2020 W 108th Cir Ball Corporation Ball Corporation - Buildi… Ball Corporation 16 46,500 4 Oct 2019 Nov 2020 W 108th Cir Ball Corporation Ball Corporation - Buildi… Ball Corporation 17 46,500 4 Oct 2019 Nov 2020 W 108th Cir Ball Corporation Candelas Medical Office… - 18 42,369 2 Sep 2020 Jul 2021 NWC 91st Ave, & Candela… - The Hooper Office/Retail Palisade Partners 19 39,400 - Dec 2019 Mar 2021 2600 Welton St Palisade Partners 252 Clayton St Broe Real Estate Group 20 34,890 7 Aug 2020 Apr 2021 The Broe Group Glenham Pl Stonebridge Companies 21 31,500 4 Apr 2019 Dec 2020 Stonebridge Companies Boulevard 1 One Confluent Development 22 24,000 2 Aug 2019 Nov 2020 Quebec St & Lowry Blvd Kelmore Development Corporation 1969 Miner St - 23 19,957 2 Aug 2020 Oct 2021 Pinecroft Core Holdings, LLC 12650 W 54th Dr - 24 14,400 2 Jan 2020 Nov 2020 The Basement Sanctuary Firehouse - 25 14,091 3 Dec 2019 Mar 2021 1900 W 32nd Ave - Broomfield Professional… - 26 12,000 - Jan 2020 Jan 2021 899 US Highway 287 - 7700 S Wheeling Ct - 27 10,000 - Mar 2019 Nov 2020 Tucows 100 S Wadsworth Blvd - 28 9,300 2 Aug 2020 Nov 2020 Wall Development Group

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Investment activity has slowed dramatically as the for $143 million ($239/SF). The 4 Star asset was financial impact of the coronavirus is assessed. originally built in 1994 but received more than $7.3 million in renovations beginning in 2017, which included The first quarter of the new decade kicked off with the an upgraded lobby, elevators, restrooms, HVAC, and an biggest non-bulk portfolio trade ever recorded in expanded conference center. Civic Center Plaza Denver's office market. Toronto-based Brookfield Asset received LEED Gold certification after receiving Management acquired two assets at Denver City Center upgrades. The building was more than 95% occupied from San Francisco-based Shorenstein Properties for with tenants including WeWork, State of Colorado, and $400 million ($311/SF) in February. The CBD buildings the Regional Transportation District. totaled nearly 1.3 million SF of office space and were approximately 95% occupied at the time of sale. Notable Another major asset in the CBD bought by a coastal tenants include Johns Manville, Service Source, Marketo, investment firm commanded an even higher price per and SunRun. Denver City Center delivered in 1981 and SF. Miami-based Rialto Holdings acquired 410 17th St., underwent minor renovations from the seller during its a 436,000-SF building, for $127.3 million ($292/SF) in holding period. June. Rialto plans to make capital improvements to the common areas of the 1977-built property, which Coastal investment firms made the biggest splashes in reportedly had no deferred maintenance. The cap rate, Denver's office market in 2019. Favorable market based on actual income and expenses, was in the conditions buttressed by massive job growth in the neighborhood of 5.3%. Existing tenants include Bonanza professional, scientific, and technical service sector made Creek Energy, Weatherford US, and Brownstein Hyatt Colorado's capital a sound bet for major players. With Farber Schreck. more than $2.7 billion worth of assets trading in 2019, annual trade volume was one of the highest of the cycle Although the final results are still being tallied, the fourth yet decelerated from a record year in 2018. Based on quarter appears to have been uncharacteristically CoStar's Pricing Trends, price growth was stagnant in lackluster. Sales volume has historically been elevated in Denver, a first for the market during this expansion, as the fourth quarter and topped $1 billion in both 17Q4 and cap rates ticked up slightly. 18Q4. However, sales volume in 19Q4 clocked in at under $600 million, the weakest quarter of the year, and With robust demand and a track record of rent growth the worst fourth quarter since 2012. outperformance versus the metro and the national average, the headline trades have unsurprisingly The biggest trade in 19Q4 was Florida-based America's involved institutional assets in the CBD. The submarket Capital Partners' acquisition of Tuscany Village Center has been responsible for about one-third of the metro's from Texas-based Crescent Real Estate Equities for sales volume dating back to 2018. The CBD Submarket approximately $64.9 million ($251/SF). The six-story, generated more than $600 million in sales volume in 258,000-SF building in Greenwood Village delivered in 2019, and in 2018, the submarket garnered $1 billion 1985. The property was roughly 90% occupied by worth of trades. tenants including Red Robin's Corporate Headquarters, Xanterra Parks and Resorts, FCC Services, and One of the biggest trades of 2019 was Los Angeles- Newland Communities. The reported cap rate was based Rising Realty Partners' June acquisition of the around 6.6%. 600,000-SF Civic Center Plaza in the CBD Submarket

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SALES VOLUME & MARKET SALE PRICE PER SF

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Sale Comparables Avg. Cap Rate Avg. Price/SF Avg. Vacancy At Sale 394 6.8% $227 11.4%

SALE COMPARABLE LOCATIONS

SALE COMPARABLES SUMMARY STATISTICS

Sales Attributes Low Average Median High Sale Price $206,420 $9,945,226 $1,600,000 $450,000,000

Price/SF $18 $227 $183 $3,748

Cap Rate 2.8% 6.8% 7.0% 10.7%

Time Since Sale in Months 0.4 6.7 7.3 12.0

Property Attributes Low Average Median High Building SF 977 40,352 8,840 1,219,058

Stories 1 3 2 52

Typical Floor SF 668 9,908 5,750 71,469

Vacancy Rate At Sale 0% 11.4% 0% 100%

Year Built 1860 1971 1978 2019

Star Rating 2.5

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RECENT SIGNIFICANT SALES

Property Sale

Property Name - Address Rating Yr Built Bldg SF Vacancy Sale Date Price Price/SF Cap Rate Wells Fargo Center 1 - 1983 1,219,058 3.2% 9/4/2020 $450,000,000 $369 - 1700 Lincoln St Johns Manville Plaza 2 - 1978 705,729 5.6% 2/3/2020 $205,000,000 $290 - 717 17th St City Center 3 - 1978 644,122 4.5% 2/3/2020 $195,000,000 $303 - 707 17th St The HUB 4 - 2019 279,317 5.8% 3/16/2020 $167,000,000 $598 5.7% 3601 Walnut St CoBank Center 5 - 2015 274,287 0% 8/3/2020 $120,000,000 $437 - 6340 S Fiddlers Green Cir Tuscany Village Center 6 - 1984 428,811 0.8% 12/2/2019 $64,850,000 $151 6.6% 6312 S Fiddlers Green Cir Stanford Place II 7 - 1982 366,184 17.9% 11/12/2019 $62,250,000 $170 - 7979 E Tufts Ave 4601 DTC Blvd 8 - 1982 278,823 12.4% 3/10/2020 $46,000,000 $165 - 4601 DTC Blvd Denver Centerpoint II 9 - 1980 228,142 26.2% 11/1/2019 $42,452,100 $186 - 1777 S Harrison St Belleview Tower 10 - 1982 201,670 7.8% 12/12/2019 $40,100,000 $199 - 7887 E Belleview Ave Denver Centerpoint I 11 - 1982 167,010 16.9% 11/1/2019 $35,065,400 $210 - 3900 E Mexico Ave The Citadel 12 - 1987 130,652 8.8% 5/6/2020 $33,000,000 $253 - 3200 Cherry Creek South Dr 101 University Blvd 13 - 1970 50,418 0% 10/18/2019 $26,000,000 $516 -

1900 Grant St 14 - 1982 158,000 45.8% 12/20/2019 $25,750,000 $163 -

Raytheon, Inc. 15 - 2001 105,221 0% 12/30/2019 $24,158,724 $230 - 16470 E Hughes Dr Meridian Campus 2 16 - 2002 198,461 0% 1/14/2020 $20,762,110 $105 - 12510 E Belford Ave Meridian Campus 1 17 - 1999 192,779 100% 1/14/2020 $19,237,890 $100 - 12500 E Belford Ave Triad Orchard Station W… 18 - 1972 144,189 15.3% 2/12/2020 $18,769,586 $130 - 5670 Greenwood Plaza Blvd Triad Orchard Station No… 19 - 1972 138,723 32.0% 2/12/2020 $18,058,057 $130 - 5660 Greenwood Plaza Blvd Triad Orchard Station So… 20 - 1972 131,919 18.7% 2/12/2020 $17,172,357 $130 - 5680 Greenwood Plaza Blvd

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Denver has reclaimed about two-thirds of the jobs lost coronavirus-induced downturn. Tech employers typically during April shutdowns, according to the Bureau of Labor allow the flexibility of telecommuting, and many office- Statistics. The nonfarm unemployment rate has using employers have the capacity to facilitate a work- compressed below the national average. At the start of from-home transition. Office-using jobs in Denver have 2020, Denver's unemployment rate was below 3%, grown above the national average the past five years at making it one of the tightest job markets in the country. about 3% annually.

Leisure and hospitality still weighed on the labor market Government employment has also been consistent, if not as employment in the sector was down more than 20% pedestrian, in terms of employment growth in the state from last year. Other services, which includes many jobs capital. The public sector has often been a stabilizing tied to retail, were down about 14%. Work-from-home force during past economic downturns. The government industries continue to weather the storm relatively well. and professional and business services sectors were the Jobs in information and professional and business only nonfarm job sectors in Denver to grow at or above services were virtually unchanged from the previous their five-year average in 2019. year. Although education and health services job gains were With a job location quotient near the national average for below their five-year average in 2019, it ranked as the retail and leisure and hospitality, Denver is not overly third-strongest employment growth sector behind exposed to the hardest-hit sectors. Nevertheless, professional and business services and government. Denver International Airport is a key economic driver for Healthcare is seeing a major investment in the $1.3 the region, generating more than $33 billion for the state billion VA hospital in Aurora, the Denver Health in a 5-year span. Administration's new headquarters in South Midtown, and Catalyst's 300,000-SF digital health facility in the Flights have been reduced by up to 90% by several RiNo neighborhood. airlines. Although Denver will not be more affected than most major metros in this regard, it does rely heavily on On the downside, oil and gas companies clustered in in-migration to fuel its labor force growth and overall Denver's CBD are now faced with volatile oil prices that economy, metrics which are expected to decline sharply plunged to 18-year lows in March. The last time oil in the coming months. prices were this weak in 2016, layoffs were widespread throughout the industry. This time, energy companies are The economic impact of the pandemic and shelter-in- faced with dual threats: oversupply due to Saudi Arabia place orders in April dwarfed that of the Great Financial and Russia posturing, and a precipitous fall in demand Crisis, which spanned several years. From 2008-09, as the movement of people and goods becomes Denver lost about 67,000 jobs, or about 100,000 fewer increasingly restricted due to the coronavirus. than reported during April. Even though Denver's overall employment growth Initial unemployment claims in Colorado have climbed showed signs of a slowdown last year along with the past 550,000 since mid-March. But weekly jobless national index, it added tech jobs at an accelerating claims, including gig workers and the self-employed, pace. Employment in Professional, Scientific & Technical continue to fall into July. Services grew by more than 7% annually in 2019, one of the best growth rates in the country. Corporate The last time oil prices fell this low in 2016, the local expansions and relocations by tech companies such as economy felt the impact. An oil price war between Saudi Amazon, Slack, and Conga drove employment gains and Arabia and Russia caused prices to plummet to $20 per epitomize the trend of West Coast firms choosing to barrel in March. The fallout of the demand shock caused expand in Denver for its robust workforce, quality of life, by the coronavirus led to oil prices hitting all-time lows in and cost of doing business. April, even after the U.S. and Mexico agreed to cut oil production along with OPEC+. Oil markets rebounded in Denver has been frequently lauded as a hot destination May, hovering around $30 per barrel. for young, educated job seekers throughout this cycle. Headwinds to this trend could come from housing costs, Denver's emergence as a bona fide technology market which are dramatically higher today for both renters and this cycle has helped insulate it from the impact of the prospective owners. While home prices continue to climb

10/12/2020 Copyrighted report licensed to Unique Properties, Inc. - 1130503 Page 20 Economy Denver Office into the stratosphere (albeit at a slower rate than the Along with a young, highly educated, and growing labor peak years of this cycle), apartment rent growth has force, the FasTracks transit expansion is another selling moderated alongside elevated levels of construction, point. Transit-oriented development is taking hold which may provide a relief valve for those considering through the metro as additional lines connect downtown the metro for its otherwise robust employment prospects. to North Denver, Aurora, Southeast Denver, and the Denver International Airport.

DENVER EMPLOYMENT BY INDUSTRY IN THOUSANDS

Current Level 12 Month Change 10 Year Change 5 Year Forecast

NAICS Industry Jobs LQ Market US Market US Market US Manufacturing 70 0.6 -1.58% -5.77% 1.33% 0.46% 0.54% 0.65% Trade, Transportation and Utilities 265 1.0 -5.07% -7.05% 1.53% 0.46% 1.43% 1.35% Retail Trade 128 0.9 -7.84% -8.58% 0.59% -0.13% 1.76% 1.68% Financial Activities 110 1.2 -3.40% -1.27% 1.90% 1.21% 1.07% 0.68% Government 203 0.9 -0.71% -3.23% 1.41% -0.22% 0.58% 0.63% Natural Resources, Mining and Construction 106 1.3 -5.78% -4.64% 4.34% 2.36% 1.73% 1.24% Education and Health Services 186 0.8 -4.04% -4.74% 2.61% 1.46% 2.54% 2.18% Professional and Business Services 280 1.3 -1.69% -7.04% 3.21% 1.67% 1.86% 2.21% Information 52 1.8 1.83% -3.11% 1.71% 0.28% 0.01% 1.35% Leisure and Hospitality 122 1.0 -30.07% -32.74% -0.47% -1.58% 7.74% 8.22% Other Services 51 1.0 -15.21% -15.13% 0.41% -0.61% 3.20% 3.07% Total Employment 1,446 1.0 -6.49% -8.59% 1.92% 0.58% 2.10% 2.08% Source: Oxford Economics LQ = Location Quotient

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YEAR OVER YEAR JOB GROWTH

Source: Oxford Economics

DEMOGRAPHIC TRENDS

Current Level 12 Month Change 10 Year Change 5 Year Forecast

Demographic Category Metro U.S. Metro U.S. Metro U.S. Metro U.S. Population 3,002,022 330,072,563 1.1% 0.5% 1.6% 0.6% 1.1% 0.5% Households 1,156,458 122,529,484 1.0% 0.4% 1.4% 0.7% 1.0% 0.4% Median Household Income $82,989 $64,504 0.6% 1.2% 3.5% 2.6% 2.9% 2.9% Labor Force 1,612,885 159,642,625 -4.5% -2.6% 1.3% 0.4% 1.6% 0.9% Unemployment 10.2% 13.4% 7.6% 9.8% 0.1% 0.4% - - Source: Oxford Economics

POPULATION GROWTH LABOR FORCE GROWTH INCOME GROWTH

Source: Oxford Economics

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DENVER SUBMARKETS

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SUBMARKET INVENTORY

Inventory 12 Month Deliveries Under Construction as % of Inventory

No. Submarket Bldgs SF (000) % Market Rank Bldgs SF (000) Percent Rank Bldgs SF (000) Percent Rank 1 Arapahoe Rd 75 1,723 1.0% 27 0 0 0% - 0 - - - 2 Aurora 314 9,263 5.1% 6 1 117 1.3% 3 0 - - - 3 Broomfield County 141 7,074 3.9% 9 0 0 0% - 1 12 0.2% 14 4 Capitol Hill 440 6,289 3.5% 10 0 0 0% - 2 146 2.3% 8 5 CBD 133 28,843 16.0% 1 0 0 0% - 2 639 2.2% 1 6 Centennial 88 3,615 2.0% 18 0 0 0% - 1 10 0.3% 15 7 Cherry Creek 129 3,503 1.9% 19 1 89 2.5% 4 2 110 3.1% 10 8 Clear Creek County 12 110 0.1% 30 0 0 0% - 1 20 18.1% 13 9 Colorado Blvd/I-25 243 6,239 3.5% 11 0 0 0% - 0 - - - 10 Denver Tech Center 108 11,945 6.6% 3 0 0 0% - 1 385 3.2% 3 11 East Hampden 141 3,616 2.0% 17 1 24 0.7% 7 1 104 2.9% 11 12 East I-70/Montbello 90 3,092 1.7% 23 1 12 0.4% 11 0 - - - 13 Elbert County 22 57 0% 31 0 0 0% - 0 - - - 14 Gilpin County 5 25 0% 33 0 0 0% - 0 - - - 15 Glendale 118 5,276 2.9% 13 1 65 1.2% 5 2 163 3.1% 7 16 Greenwood Village 144 9,888 5.5% 5 1 13 0.1% 10 0 - - - 17 Highlands Ranch 43 2,236 1.2% 26 0 0 0% - 0 - - - 18 Inverness 112 6,111 3.4% 12 0 0 0% - 0 - - - 19 LoDo 161 7,763 4.3% 7 0 0 0% - 2 330 4.3% 4 20 Lone Tree 68 3,280 1.8% 22 1 24 0.7% 7 2 392 11.9% 2 21 Meridian 37 3,465 1.9% 20 0 0 0% - 0 - - - 22 North Denver 187 5,109 2.8% 15 4 58 1.1% 6 0 - - - 23 Northeast Denver 183 2,292 1.3% 25 1 180 7.9% 2 0 - - - 24 Northwest Denver 494 7,344 4.1% 8 1 4 0.1% 13 7 272 3.7% 5 25 Outlying Adams County 5 15 0% 34 0 0 0% - 0 - - - 26 Outlying Arapahoe County 11 159 0.1% 28 0 0 0% - 0 - - - 27 Outlying Douglas County 22 129 0.1% 29 0 0 0% - 0 - - - 28 Panorama/Highland Park 65 3,788 2.1% 16 0 0 0% - 0 - - - 29 Park County 17 56 0% 32 0 0 0% - 0 - - - 30 Parker/Castle Rock 192 2,522 1.4% 24 1 21 0.8% 9 2 115 4.6% 9 31 Platte River 115 5,212 2.9% 14 6 584 11.2% 1 1 250 4.8% 6 32 South Midtown 254 3,378 1.9% 21 0 0 0% - 0 - - - 33 Southwest Denver 576 10,589 5.9% 4 1 5 0% 12 0 - - - 34 West Denver 775 16,046 8.9% 2 1 4 0% 14 2 52 0.3% 12

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SUBMARKET RENT

Market Rent 12 Month Market Rent QTD Annualized Market Rent

No. Submarket Per SF Rank Growth Rank Growth Rank 1 Arapahoe Rd $22.61 27 1.7% 17 0.7% 29 2 Aurora $22.05 29 1.1% 22 3.8% 19 3 Broomfield County $28.36 10 2.0% 14 8.7% 7 4 Capitol Hill $26.73 13 0.8% 27 2.3% 23 5 CBD $34.89 4 1.7% 18 10.9% 4 6 Centennial $24.14 23 1.9% 15 3.8% 20 7 Cherry Creek $37.83 3 2.5% 6 16.9% 1 8 Clear Creek County $24.44 22 1.0% 25 2.1% 24 9 Colorado Blvd/I-25 $25.93 18 1.1% 23 -2.0% 31 10 Denver Tech Center $29.36 7 3.8% 1 3.5% 21 11 East Hampden $20.84 33 0.8% 28 1.3% 26 12 East I-70/Montbello $25.29 21 2.2% 7 5.9% 13 13 Elbert County $21.27 32 -0.2% 32 -4.7% 32 14 Gilpin County $21.99 30 -0.3% 33 -4.9% 33 15 Glendale $26.40 15 2.2% 8 4.8% 17 16 Greenwood Village $27.80 11 2.1% 11 7.7% 10 17 Highlands Ranch $28.40 9 3.2% 2 7.8% 9 18 Inverness $25.69 20 2.0% 13 6.2% 12 19 LoDo $39.70 2 2.1% 12 9.7% 6 20 Lone Tree $30.06 6 2.6% 5 8.7% 8 21 Meridian $28.74 8 3.1% 3 10.2% 5 22 North Denver $25.99 17 1.6% 19 4.0% 18 23 Northeast Denver $24.03 24 1.1% 24 2.4% 22 24 Northwest Denver $23.38 26 1.7% 16 5.9% 14 25 Outlying Adams County $21.46 31 -0.5% 34 -5.8% 34 26 Outlying Arapahoe County $26.57 14 1.0% 26 5.0% 16 27 Outlying Douglas County $25.77 19 1.4% 21 5.0% 15 28 Panorama/Highland Park $27.25 12 2.2% 9 7.0% 11 29 Park County $22.23 28 0.4% 30 -1.8% 30 30 Parker/Castle Rock $30.19 5 2.7% 4 13.6% 2 31 Platte River $43.38 1 1.5% 20 12.2% 3 32 South Midtown $26.30 16 0.7% 29 0.9% 28 33 Southwest Denver $20.26 34 -0.1% 31 1.2% 27 34 West Denver $23.86 25 2.2% 10 2.0% 25

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SUBMARKET VACANCY & NET ABSORPTION

Vacancy 12 Month Absorption

No. Submarket SF Percent Rank SF % of Inv Rank Construc. Ratio 1 Arapahoe Rd 120,478 7.0% 5 (14,563) -0.8% 16 - 2 Aurora 835,993 9.0% 13 (87,243) -0.9% 24 - 3 Broomfield County 735,102 10.4% 18 (120,800) -1.7% 27 - 4 Capitol Hill 547,148 8.7% 12 (113,900) -1.8% 26 - 5 CBD 4,832,434 16.8% 26 (799,362) -2.8% 33 - 6 Centennial 609,326 16.9% 27 (332,613) -9.2% 32 - 7 Cherry Creek 418,428 11.9% 22 (15,242) -0.4% 17 - 8 Clear Creek County - - - 0 0% - - 9 Colorado Blvd/I-25 726,518 11.6% 21 (98,321) -1.6% 25 - 10 Denver Tech Center 1,742,279 14.6% 25 18,284 0.2% 5 - 11 East Hampden 405,487 11.2% 20 (26,759) -0.7% 19 - 12 East I-70/Montbello 237,679 7.7% 8 (43,710) -1.4% 20 - 13 Elbert County - - - 10,403 18.1% 6 - 14 Gilpin County 7,429 30.1% 31 0 0% - - 15 Glendale 695,508 13.2% 24 (123,939) -2.3% 28 - 16 Greenwood Village 1,973,021 20.0% 30 (803,623) -8.1% 34 - 17 Highlands Ranch 164,630 7.4% 6 (46,567) -2.1% 21 - 18 Inverness 1,113,013 18.2% 29 (141,120) -2.3% 29 - 19 LoDo 784,969 10.1% 16 (258,175) -3.3% 30 - 20 Lone Tree 344,842 10.5% 19 (10,462) -0.3% 15 - 21 Meridian 279,371 8.1% 10 230,239 6.6% 2 - 22 North Denver 430,473 8.4% 11 (1,870) 0% 12 - 23 Northeast Denver 122,818 5.4% 2 154,737 6.8% 3 1.2 24 Northwest Denver 666,474 9.1% 14 129,246 1.8% 4 - 25 Outlying Adams County - - - 0 0% - - 26 Outlying Arapahoe County 19,056 11.9% 23 (4,327) -2.7% 13 - 27 Outlying Douglas County 9,806 7.6% 7 (6,359) -4.9% 14 - 28 Panorama/Highland Park 392,799 10.4% 17 (61,160) -1.6% 23 - 29 Park County 2,400 4.3% 1 0 0% - - 30 Parker/Castle Rock 141,680 5.6% 3 1,432 0.1% 7 14.9 31 Platte River 910,377 17.5% 28 248,857 4.8% 1 1.8 32 South Midtown 196,430 5.8% 4 (56,236) -1.7% 22 - 33 Southwest Denver 832,200 7.9% 9 (22,590) -0.2% 18 - 34 West Denver 1,491,238 9.3% 15 (279,775) -1.7% 31 -

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OVERALL SUPPLY & DEMAND

Inventory Net Absorption

Year SF SF Growth % Growth SF % of Inv Construction Ratio 2024 187,555,874 1,830,941 1.0% 1,357,811 0.7% 1.3 2023 185,724,933 1,703,463 0.9% 1,380,789 0.7% 1.2 2022 184,021,470 1,337,119 0.7% 1,862,475 1.0% 0.7 2021 182,684,351 1,458,215 0.8% 602,659 0.3% 2.4 2020 181,226,136 2,180,196 1.2% (2,543,682) -1.4% - YTD 180,058,904 1,012,964 0.6% (2,849,686) -1.6% - 2019 179,045,940 990,968 0.6% 1,652,066 0.9% 0.6 2018 178,054,972 3,508,368 2.0% 3,098,608 1.7% 1.1 2017 174,546,604 2,381,982 1.4% 1,846,002 1.1% 1.3 2016 172,164,622 1,018,579 0.6% 1,133,955 0.7% 0.9 2015 171,146,043 1,787,463 1.1% 2,809,128 1.6% 0.6 2014 169,358,580 775,971 0.5% 1,961,043 1.2% 0.4 2013 168,582,609 749,961 0.4% 1,884,833 1.1% 0.4 2012 167,832,648 607,452 0.4% 921,057 0.5% 0.7 2011 167,225,196 384,121 0.2% 1,415,670 0.8% 0.3 2010 166,841,075 907,781 0.5% 2,156,677 1.3% 0.4 2009 165,933,294 1,558,752 0.9% (457,875) -0.3% - 2008 164,374,542 2,510,537 1.6% 179,881 0.1% 14.0

4 & 5 STAR SUPPLY & DEMAND

Inventory Net Absorption

Year SF SF Growth % Growth SF % of Inv Construction Ratio 2024 83,568,988 2,020,192 2.5% 1,667,826 2.0% 1.2 2023 81,548,796 1,920,215 2.4% 1,597,375 2.0% 1.2 2022 79,628,581 1,610,583 2.1% 1,978,945 2.5% 0.8 2021 78,017,998 1,671,526 2.2% 1,378,312 1.8% 1.2 2020 76,346,472 2,004,535 2.7% (986,821) -1.3% - YTD 75,217,890 875,953 1.2% (1,158,656) -1.5% - 2019 74,341,937 1,007,990 1.4% 1,879,572 2.5% 0.5 2018 73,333,947 3,680,512 5.3% 3,440,524 4.7% 1.1 2017 69,653,435 2,031,914 3.0% 776,281 1.1% 2.6 2016 67,621,521 789,788 1.2% 184,784 0.3% 4.3 2015 66,831,733 1,480,248 2.3% 1,455,668 2.2% 1.0 2014 65,351,485 904,336 1.4% 1,031,785 1.6% 0.9 2013 64,447,149 929,619 1.5% 1,552,123 2.4% 0.6 2012 63,517,530 563,907 0.9% 307,372 0.5% 1.8 2011 62,953,623 400,813 0.6% 1,328,523 2.1% 0.3 2010 62,552,810 1,153,049 1.9% 2,056,967 3.3% 0.6 2009 61,399,761 1,255,448 2.1% 339,649 0.6% 3.7 2008 60,144,313 1,727,545 3.0% (419,126) -0.7% -

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3 STAR SUPPLY & DEMAND

Inventory Net Absorption

Year SF SF Growth % Growth SF % of Inv Construction Ratio 2024 72,737,113 0 0% (139,150) -0.2% - 2023 72,737,113 0 0% (41,189) -0.1% - 2022 72,737,113 0 0% 84,196 0.1% 0 2021 72,737,113 88,417 0.1% (396,916) -0.5% - 2020 72,648,696 211,056 0.3% (1,060,324) -1.5% - YTD 72,610,046 172,406 0.2% (1,168,713) -1.6% - 2019 72,437,640 48,376 0.1% 116,538 0.2% 0.4 2018 72,389,264 (58,653) -0.1% (301,033) -0.4% - 2017 72,447,917 398,106 0.6% 849,819 1.2% 0.5 2016 72,049,811 332,240 0.5% 837,502 1.2% 0.4 2015 71,717,571 621,716 0.9% 808,554 1.1% 0.8 2014 71,095,855 (12,900) 0% 673,580 0.9% - 2013 71,108,755 (24,854) 0% 491,323 0.7% - 2012 71,133,609 182,852 0.3% 421,055 0.6% 0.4 2011 70,950,757 65,239 0.1% (50,061) -0.1% - 2010 70,885,518 (75,140) -0.1% 172,009 0.2% - 2009 70,960,658 72,416 0.1% (688,400) -1.0% - 2008 70,888,242 794,858 1.1% 619,733 0.9% 1.3

1 & 2 STAR SUPPLY & DEMAND

Inventory Net Absorption

Year SF SF Growth % Growth SF % of Inv Construction Ratio 2024 31,249,773 (189,251) -0.6% (170,865) -0.5% - 2023 31,439,024 (216,752) -0.7% (175,397) -0.6% - 2022 31,655,776 (273,464) -0.9% (200,666) -0.6% - 2021 31,929,240 (301,728) -0.9% (378,737) -1.2% - 2020 32,230,968 (35,395) -0.1% (496,537) -1.5% - YTD 32,230,968 (35,395) -0.1% (522,317) -1.6% - 2019 32,266,363 (65,398) -0.2% (344,044) -1.1% - 2018 32,331,761 (113,491) -0.3% (40,883) -0.1% - 2017 32,445,252 (48,038) -0.1% 219,902 0.7% - 2016 32,493,290 (103,449) -0.3% 111,669 0.3% - 2015 32,596,739 (314,501) -1.0% 544,906 1.7% - 2014 32,911,240 (115,465) -0.3% 255,678 0.8% - 2013 33,026,705 (154,804) -0.5% (158,613) -0.5% - 2012 33,181,509 (139,307) -0.4% 192,630 0.6% - 2011 33,320,816 (81,931) -0.2% 137,208 0.4% - 2010 33,402,747 (170,128) -0.5% (72,299) -0.2% - 2009 33,572,875 230,888 0.7% (109,124) -0.3% - 2008 33,341,987 (11,866) 0% (20,726) -0.1% -

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OVERALL RENT & VACANCY

Market Rent Vacancy

Year Per SF Index % Growth Vs Hist Peak SF Percent Ppts Chg 2024 $30.13 134 1.1% 6.9% 23,614,550 12.6% 0.1% 2023 $29.81 133 2.2% 5.8% 23,140,281 12.5% 0.1% 2022 $29.16 130 4.0% 3.4% 22,816,460 12.4% -0.4% 2021 $28.04 125 -0.1% -0.5% 23,332,123 12.8% 0.4% 2020 $28.08 125 -0.4% -0.4% 22,476,188 12.4% 2.4% YTD $28.44 127 0.9% 0.9% 21,789,406 12.1% 2.1% 2019 $28.19 126 4.2% 0% 17,926,756 10.0% -0.4% 2018 $27.06 121 4.5% -4.0% 18,578,854 10.4% 0% 2017 $25.90 115 3.9% -8.1% 18,253,267 10.5% 0.2% 2016 $24.93 111 1.5% -11.5% 17,604,636 10.2% -0.2% 2015 $24.57 109 4.7% -12.8% 17,839,746 10.4% -0.7% 2014 $23.47 105 5.8% -16.7% 18,860,764 11.1% -0.8% 2013 $22.18 99 5.1% -21.3% 20,048,018 11.9% -0.7% 2012 $21.11 94 4.6% -25.1% 21,182,890 12.6% -0.2% 2011 $20.18 90 1.9% -28.4% 21,496,495 12.9% -0.6% 2010 $19.80 88 -1.8% -29.7% 22,528,585 13.5% -0.8% 2009 $20.16 90 -10.2% -28.5% 23,778,581 14.3% 1.1% 2008 $22.44 100 1.8% -20.4% 21,754,372 13.2% 1.2%

4 & 5 STAR RENT & VACANCY

Market Rent Vacancy

Year Per SF Index % Growth Vs Hist Peak SF Percent Ppts Chg 2024 $35.95 131 1.0% 7.1% 11,872,914 14.2% 0.1% 2023 $35.60 130 2.1% 6.1% 11,521,334 14.1% 0.1% 2022 $34.86 127 3.9% 3.9% 11,199,310 14.1% -0.8% 2021 $33.55 122 -0.3% 0% 11,568,451 14.8% 0.1% 2020 $33.64 123 0.2% 0.2% 11,275,654 14.8% 3.4% YTD $34.02 124 1.4% 1.4% 10,498,928 14.0% 2.6% 2019 $33.56 122 5.4% 0% 8,464,319 11.4% -1.3% 2018 $31.83 116 5.0% -5.2% 9,326,901 12.7% -0.4% 2017 $30.32 111 3.4% -9.7% 9,152,893 13.1% 1.6% 2016 $29.33 107 -1.3% -12.6% 7,784,609 11.5% 0.6% 2015 $29.72 108 4.0% -11.4% 7,278,887 10.9% -0.2% 2014 $28.59 104 6.1% -14.8% 7,254,307 11.1% -0.4% 2013 $26.96 98 4.1% -19.7% 7,383,938 11.5% -1.1% 2012 $25.90 94 5.8% -22.8% 8,006,442 12.6% 0.3% 2011 $24.49 89 3.1% -27.0% 7,749,907 12.3% -1.6% 2010 $23.76 87 -2.0% -29.2% 8,675,386 13.9% -1.7% 2009 $24.25 88 -11.6% -27.8% 9,580,404 15.6% 1.2% 2008 $27.42 100 2.9% -18.3% 8,664,605 14.4% 3.2%

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3 STAR RENT & VACANCY

Market Rent Vacancy

Year Per SF Index % Growth Vs Hist Peak SF Percent Ppts Chg 2024 $27.26 139 1.1% 7.1% 9,117,368 12.5% 0.2% 2023 $26.95 137 2.3% 5.8% 8,978,218 12.3% 0.1% 2022 $26.34 134 4.0% 3.5% 8,937,029 12.3% -0.1% 2021 $25.32 129 -0.1% -0.6% 9,021,225 12.4% 0.7% 2020 $25.34 129 -0.5% -0.5% 8,535,893 11.7% 1.7% YTD $25.69 131 0.9% 0.9% 8,605,644 11.9% 1.8% 2019 $25.46 130 3.2% 0% 7,264,525 10.0% -0.1% 2018 $24.67 126 3.9% -3.1% 7,332,687 10.1% 0.3% 2017 $23.74 121 4.4% -6.8% 7,108,500 9.8% -0.7% 2016 $22.75 116 4.3% -10.6% 7,560,213 10.5% -0.8% 2015 $21.82 111 5.6% -14.3% 8,085,927 11.3% -0.4% 2014 $20.65 105 5.5% -18.9% 8,272,765 11.6% -1.0% 2013 $19.58 100 6.1% -23.1% 8,959,245 12.6% -0.7% 2012 $18.45 94 3.8% -27.5% 9,475,422 13.3% -0.4% 2011 $17.79 91 1.1% -30.1% 9,713,625 13.7% 0.2% 2010 $17.60 90 -1.3% -30.9% 9,598,325 13.5% -0.3% 2009 $17.82 91 -9.1% -30.0% 9,845,474 13.9% 1.1% 2008 $19.61 100 0.4% -23.0% 9,077,076 12.8% 0.1%

1 & 2 STAR RENT & VACANCY

Market Rent Vacancy

Year Per SF Index % Growth Vs Hist Peak SF Percent Ppts Chg 2024 $22.51 134 1.3% 5.7% 2,624,268 8.4% 0% 2023 $22.23 133 2.5% 4.4% 2,640,729 8.4% -0.1% 2022 $21.69 129 4.2% 1.9% 2,680,121 8.5% -0.1% 2021 $20.82 124 0.1% -2.2% 2,742,447 8.6% 0.3% 2020 $20.80 124 -2.3% -2.3% 2,664,641 8.3% 1.5% YTD $21.12 126 -0.8% -0.8% 2,684,834 8.3% 1.5% 2019 $21.29 127 2.0% 0% 2,197,912 6.8% 0.9% 2018 $20.87 124 4.0% -2.0% 1,919,266 5.9% -0.2% 2017 $20.06 120 4.6% -5.8% 1,991,874 6.1% -0.8% 2016 $19.18 114 4.9% -9.9% 2,259,814 7.0% -0.6% 2015 $18.29 109 5.1% -14.1% 2,474,932 7.6% -2.5% 2014 $17.41 104 5.8% -18.3% 3,333,692 10.1% -1.1% 2013 $16.45 98 6.2% -22.8% 3,704,835 11.2% 0.1% 2012 $15.48 92 2.3% -27.3% 3,701,026 11.2% -0.9% 2011 $15.14 90 -0.3% -28.9% 4,032,963 12.1% -0.6% 2010 $15.18 91 -2.2% -28.7% 4,254,874 12.7% -0.2% 2009 $15.53 93 -7.4% -27.1% 4,352,703 13.0% 0.9% 2008 $16.77 100 1.2% -21.2% 4,012,691 12.0% 0%

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OVERALL SALES

Completed Transactions (1) Market Pricing Trends (2)

Year Deals Volume Turnover Avg Price Avg Price/SF Avg Cap Rate Price/SF Price Index Cap Rate 2024 ------$251.26 178 6.9% 2023 ------$247.71 175 6.9% 2022 ------$239.74 170 7.0% 2021 ------$224.20 159 7.1% 2020 ------$226.91 161 7.3% YTD 268 $1.6B 4.3% $10,658,935 $253.92 6.6% $232.68 165 7.1% 2019 442 $2.8B 8.0% $9,733,757 $198.56 6.9% $232.18 164 7.1% 2018 427 $3.2B 8.0% $11,767,793 $253.87 6.7% $234.60 166 6.9% 2017 461 $2.3B 7.1% $7,508,592 $199.21 7.1% $222.23 157 6.8% 2016 463 $2.1B 8.3% $6,313,100 $161.93 7.1% $215.35 152 6.8% 2015 467 $2.8B 9.7% $7,891,191 $178.61 7.2% $211.52 150 6.8% 2014 519 $2.7B 10.0% $7,708,722 $165.15 7.7% $199.39 141 6.9% 2013 456 $2.5B 9.3% $8,100,083 $171.44 7.6% $183.26 130 7.2% 2012 371 $1.7B 7.6% $7,152,199 $139.98 7.3% $169.24 120 7.5% 2011 320 $1.4B 5.9% $7,823,409 $153.72 7.0% $160.32 113 7.8% 2010 257 $829.7M 4.1% $5,464,073 $140.43 9.1% $141.06 100 8.5% 2009 188 $341.5M 2.0% $3,278,223 $115.36 9.0% $120.82 85 9.5% (1) Completed transaction data is based on actual arms-length sales transactions and levels are dependent on the mix of what happened to sell in the period. (2) Market price trends data is based on the estimated price movement of all properties in the market, informed by actual transactions that have occurred.

4 & 5 STAR SALES

Completed Transactions (1) Market Pricing Trends (2)

Year Deals Volume Turnover Avg Price Avg Price/SF Avg Cap Rate Price/SF Price Index Cap Rate 2024 ------$311.12 173 6.6% 2023 ------$307.04 171 6.6% 2022 ------$297.44 165 6.6% 2021 ------$278.25 155 6.8% 2020 ------$281.73 157 6.9% YTD 16 $1.3B 5.6% $139,029,123 $325.22 5.6% $288.67 160 6.8% 2019 46 $1.8B 10.5% $38,634,146 $228.26 6.1% $286.94 160 6.8% 2018 39 $2B 8.3% $68,541,611 $334.17 5.9% $296.60 165 6.5% 2017 36 $1.4B 7.2% $44,360,328 $290.49 6.5% $279.95 156 6.5% 2016 42 $1.2B 10.4% $36,322,011 $180.34 6.8% $270.56 150 6.5% 2015 40 $1.5B 10.0% $40,540,089 $234.98 6.9% $269.13 150 6.4% 2014 55 $1.8B 11.4% $43,072,876 $239.65 6.6% $254.29 141 6.5% 2013 47 $1.7B 12.9% $49,393,684 $223.00 6.8% $234.16 130 6.8% 2012 35 $1.2B 10.1% $52,517,530 $192.84 7.4% $217.06 121 7.0% 2011 54 $1B 8.9% $43,659,916 $199.84 6.5% $205.23 114 7.3% 2010 22 $487M 4.4% $37,417,092 $204.86 8.0% $180.48 100 7.9% 2009 4 $181.7M 2.2% $45,415,100 $133.67 - $154.11 86 8.9% (1) Completed transaction data is based on actual arms-length sales transactions and levels are dependent on the mix of what happened to sell in the period. (2) Market price trends data is based on the estimated price movement of all properties in the market, informed by actual transactions that have occurred.

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3 STAR SALES

Completed Transactions (1) Market Pricing Trends (2)

Year Deals Volume Turnover Avg Price Avg Price/SF Avg Cap Rate Price/SF Price Index Cap Rate 2024 ------$214.04 180 7.1% 2023 ------$210.85 177 7.1% 2022 ------$203.90 171 7.1% 2021 ------$190.66 160 7.3% 2020 ------$192.92 162 7.4% YTD 106 $263.9M 3.4% $4,300,419 $152.35 6.3% $197.98 166 7.3% 2019 164 $736.8M 6.4% $6,736,411 $163.38 7.0% $198.22 167 7.2% 2018 181 $948.7M 8.0% $9,034,267 $191.71 6.8% $196.00 165 7.1% 2017 179 $627.1M 6.7% $5,655,902 $136.77 7.2% $186.20 156 7.0% 2016 184 $688.9M 6.8% $5,963,215 $156.48 7.3% $181.45 152 7.0% 2015 197 $916.2M 9.7% $7,295,312 $139.50 7.5% $175.65 148 7.0% 2014 234 $746.1M 10.2% $5,193,459 $107.91 7.6% $166.32 140 7.1% 2013 181 $555.3M 6.9% $5,576,514 $120.90 7.9% $153.19 129 7.4% 2012 152 $374.4M 6.8% $4,896,918 $81.31 7.5% $141.26 119 7.7% 2011 139 $256.5M 4.1% $3,472,823 $96.60 7.0% $134.54 113 7.9% 2010 129 $258.6M 3.7% $4,557,729 $115.07 8.3% $118.23 99 8.7% 2009 85 $123.3M 1.7% $3,278,232 $123.86 9.0% $101.86 86 9.7% (1) Completed transaction data is based on actual arms-length sales transactions and levels are dependent on the mix of what happened to sell in the period. (2) Market price trends data is based on the estimated price movement of all properties in the market, informed by actual transactions that have occurred.

1 & 2 STAR SALES

Completed Transactions (1) Market Pricing Trends (2)

Year Deals Volume Turnover Avg Price Avg Price/SF Avg Cap Rate Price/SF Price Index Cap Rate 2024 ------$188.49 194 7.4% 2023 ------$185.44 191 7.4% 2022 ------$179.15 184 7.4% 2021 ------$167.39 172 7.6% 2020 ------$169.20 174 7.7% YTD 146 $130.3M 3.4% $1,405,549 $144.23 6.9% $173.79 179 7.6% 2019 232 $278.2M 6.1% $2,033,743 $157.50 7.1% $174.58 180 7.5% 2018 207 $273.5M 7.1% $1,928,793 $156.28 7.0% $169.72 175 7.4% 2017 246 $282.8M 8.0% $1,634,234 $126.99 7.3% $162.02 167 7.4% 2016 237 $228.6M 6.9% $1,199,622 $113.13 7.0% $156.51 161 7.4% 2015 230 $390.6M 8.9% $2,011,833 $141.33 6.9% $151.24 156 7.4% 2014 230 $212.7M 7.0% $1,212,902 $95.84 8.8% $139.42 143 7.6% 2013 228 $237.6M 7.5% $1,266,437 $103.03 8.0% $126.38 130 7.9% 2012 184 $131.4M 4.9% $949,614 $103.21 7.1% $115.15 118 8.3% 2011 127 $70.2M 4.0% $846,390 $67.06 7.9% $108.42 112 8.6% 2010 106 $84.1M 4.3% $1,006,265 $65.52 10.8% $95.98 99 9.3% 2009 99 $36.5M 2.4% $559,711 $60.31 8.9% $82.01 84 10.5% (1) Completed transaction data is based on actual arms-length sales transactions and levels are dependent on the mix of what happened to sell in the period. (2) Market price trends data is based on the estimated price movement of all properties in the market, informed by actual transactions that have occurred.

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