PORTLAND, | MSA ECONOMIC AND DEMOGRAPHIC OVERVIEW 1Q | 20

a Berkshire Hathaway and Jefferies Financial Group company PORTLAND, OREGON | MSA

Prominent Job Growth

Amazon, Intel, and Nike are scheduled to bring more than 2,650 permanent jobs to Greater Portland over the next five years -

Affluent Place for Business

Portland was No. 3 among the "Best Place for Businesses and Careers" - Forbes

INTRODUCTION The Portland-Vancouver-Hillsboro, OR-WA, Metropolitan Statistical Area (MSA) encompasses five counties in Oregon (Clackamas, Columbia, Multnomah, Washington, and Yamhill) and two counties in Washington Fortune 500 Hub (Clark and Skamania). Home to nearly 2.5 million residents, the Portland MSA is the most populated metropolitan area in Oregon, the second- Portland boasts a prominent Fortune 500 company presence largest metro in Washington, and the 23rd-largest MSA in the nation. supported by Amazon, Intel, Nike, and Precision Castparts Separated by the , Metro Portland is a strategic center of - Fortune trade and commerce that is uniquely positioned along the Pacific Rim in the Pacific Northwest of the .

As a vibrant and attractive business location with a variety of commercial and industrial sites, the Portland region boasts one of the most diverse economies on the West Coast served by an efficient multimodal Off-Campus Housing Demand transportation system sector as well as biotechnology, health sciences, and alternative energy. Portland State University offers approximately 2,100 on-campus beds, leaving more than 23,900 students in need of off-campus housing - Portland State University

BERKADIA ECONOMIC AND DEMOGRAPHIC OVERVIEW PORTLAND, OREGON | MSA

DEMOGRAPHICS

ST 1 67% OF WORKERS ARE IN 39.7 MOST POPULATED WHITE-COLLAR MEDIAN AGE METRO IN POSITIONS METROWIDE OF METRO RESIDENTS OREGON

$ 2.6M 655.8K 332.6K 373.7K 83.8K

Greater Portland’s The metro area’s median Nearly 39% of residents Approximately 34% More than 36% of population is forecast to age 25 and older hold of Metro Portland housing units in Greater household income grow 6.3% over the next a bachelor’s degree or households earn Portland are renter- is projected to reach five years, surpassing 2.6 higher, compared to 31% $100,000 or more occupied, outpacing the $83,797 by 2025, up million residents nationally annually, compared to national rate of 31% 16.8% from 2020 28% nationally

BERKADIA ECONOMIC AND DEMOGRAPHIC OVERVIEW PORTLAND, OREGON | MSA

METRO EMPLOYMENT TRENDS

AVERAGE ANNUAL WAGE BY OCCUPATION $ The Portland metropolitan area is the financial, trade, transportation, and service center Management K for Oregon, southwest Washington, and the Columbia River Basin. Its manufacturing base 115.5 includes electronics, machinery, transportation equipment, and fabricated metals.

Health Care Practitioners $ Portland's economy has come under severe strain because of the coronavirus pandemic. Total & Technicians 98.0K nonemployment contracted 12.0% year over year through May 2020.

Business & $ Industry Breakdown Mining, Logging, & Construction Financial Operations 76.7K 7% Trade, Transportation, & Utilities Educational Instruction $ 19% & Library 65.5K Education & Health Services 15% $ Construction & Extraction 61.0K

Sales $ PORTLAND, OR, MSA 47.5K Financial Activities Professional & Business Services EMPLOYMENT BY 6% Office & Administrative $ 16% SECTOR Support 43.8K $ Manufacturing 43.1K Government Other Services 14% Transportation & $ 3% Material Moving 40.7K Information Manufacturing 2% 11% Leisure & Hospitality Food Preparation & $ 6% Service 30.5K

Source: BLS Occupational Employment Statistics Survey Source: BLS Current Employment Statistics Survey

BERKADIA ECONOMIC AND DEMOGRAPHIC OVERVIEW PORTLAND, OREGON | MSA

MARKET RESILIENCY ANALYSIS

MARKET NATIONAL RATE 22.7% RATE 20.2% of jobs are in high-risk industries of jobs are in high-risk industries

INDUSTRY COMPOSITION JOBS EXPOSURE

Risk Level # of Employees % of Market National Avg. High Low MediumJOB EXPOSUREHigh Accommodation and food services 108,054 9.0% 9.6% Arts, entertainment, and recreation 21,899 1.8% 1.9% Construction 77,213 6.4% 5.3% Management of companies and enterprises 43,057 3.6% 1.6% Real estate and rental and leasing 21,586 1.8% 1.7% 23% Unclassified 824 0.1% 0.1% 33% Total 272,633 22.7% 20.2% Medium Administrative and waste services 68,557 5.7% 6.5% Educational services 88,974 7.4% 7.1% Manufacturing 127,260 10.6% 8.7% Mining, quarrying, and oil and gas extraction 494 0.0% 0.4% Other services, except public administration 47,452 4.0% 3.2% Professional and technical services 78,621 6.6% 6.6% Retail trade 115,337 9.6% 10.5% Total 526,695 43.9% 43.6% Low Agriculture, forestry, fishing and hunting 15,871 1.3% 1.0% Finance and insurance 42,237 3.5% 4.1% Health care and social assistance 163,071 13.6% 15.1% Information 26,979 2.3% 2.1% Public administration 38,107 3.2% 5.5% Transportation and warehousing 51,816 4.3% 4.4% Utilities 5,790 0.5% 0.6% Wholesale trade 55,376 4.6% 4.0% 44% Total 399,247 33.3% 36.8% Total 1,198,575 100.0% 100.6%

BERKADIA ECONOMIC AND DEMOGRAPHIC OVERVIEW PORTLAND, OREGON | MSA

METRO EMPLOYMENT TRENDS

MAY 2020 14.0% the metro's monthly unemployment rate increased 1,040 bps annually

Employment Trends 15% 50,000 PORTLAND, OR, MSA LARGEST EMPLOYERS Intel Corp. 20,600 12% 0 Providence Health & Services 18,900 Oregon Health & Sciences University 17,600 9% (50,000) Kaiser Permanente 12,400 Nike Inc. 12,000

6% (100,000) Legacy Health 11,400 Fred Meyer Stores 11,000 City of Portland 9,700 3% (150,000) Portland Public Schools 7,600 Beaverton School District 5,500

0% (200,000) Sources: Multnomah 2019 CAFR; Clackamas County 2019 CAFR; Clark 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020* County 2018 CAFR

*May Unemployment Rate Jobs Added / Lost

MAY 2020 (146,700) jobs were eliminated metrowide, a 12.0% annual decrease

BERKADIA ECONOMIC AND DEMOGRAPHIC OVERVIEW PORTLAND, OREGON | MSA

TRADE AND DISTRIBUTION

$ PORT OF PORTLAND 3.5 billion 71,800 Personal Income Jobs Supported Generated

$7.0 billion Economic Impact

Located at the confluence of the Willamette and Columbia Rivers, thePort of Portland operates four marine terminals, four airports, six business parks, and the Portland Ship Yard. With a total economic impact of more than $7 billion, the port’s maritime and aviation operations generate over 71,800 direct and indirect jobs, $3.5 billion in personal income, and $315 million in taxes each year. Companies that operate warehouse and distribution facilities at the port include Columbia Sportswear, ConocoPhillips, BNSF, and Union Pacific.

TECHNOLOGY

INTEL - RONLER CAMPUS 35,400 $92,800 Jobs Supported Annual Median Wage

$26.8 billion Intel Economic Impact

Referred to as the "Silicon Forest," Portland's technology sector plays a major role in the local economy, with more than 35,400 people employed by software and technology firms. Key technology employers include Google, Cadence Design Systems, Hewlett-Packard, eBay, Salesforce, New Relic, Airbnb, IBM, Synopsys, and Xerox. The region's largest employer, Intel Corporation supports 20,600 jobs. The California-based microchip manufacturer generates a $26.8 billion economic impact in Oregon.

BERKADIA ECONOMIC AND DEMOGRAPHIC OVERVIEW PORTLAND, OREGON | MSA

LEISURE AND HOSPITALITY

OREGON CONVENTION CENTER 62,100 8.8 million Jobs Supported Overnight Visitors

$5.6 billion Tourist Spending

Tourism is a major driver in the regional economy, supporting 62,100 jobs in the metro area in May 2020. Known for a thriving outdoor scene and an eclectic mix of breweries and restaurants, 8.8 million visitors came to the metro for an overnight stay in 2019, generating $5.6 billion in direct spending. With 1,435 total events hosted, the Oregon Convention Center and Portland'5 Centers for the Arts are some of the most visited venues in the metro, generating a combined economic impact of $773 million.

ATHLETIC AND OUTDOOR INDUSTRY

$ ADIDAS CAMPUS 632 2 billion Athletic and Outdoor Statewide Nike Firms Economic Impact

20,600 Jobs Supported

Greater Portland is a thriving hub for the athletic footwear industry. Businesses in the athletics and outdoor industry directly employ 20,600 workers, outpacing the national average by 50%, while accounting for an additional 11,000 indirect workers. Combined, athletic and outdoor firms generate a total of $3 billion in employee wages annually. The region is home to over600 athletic and outdoor firms, such as Columbia Sportswear, Under Armour, and Adidas. Fortune 500 company Nike is also headquartered in the area, generating a statewide impact of $2 billion.

BERKADIA ECONOMIC AND DEMOGRAPHIC OVERVIEW PORTLAND, OREGON | MSA

CONSTRUCTION AND DEVELOPMENT

NIKE HEADQUARTER EXPANSION PORTLAND DIAMOND PROJECT

2,500 $3 billion Jobs Supported Investment

$380 million 34,000-seat Investment MLB Stadium

Nike continues a $380 million expansion that involves adding six buildings Come Opening Day 2023, Portland's Terminal 2 will become the official home with over 4 million square feet of new office space, fitness center, and open for Major League Baseball's newest Portland team. The Portland Diamond space to its headquarters in Beaverton. Since 2016, over two million square Project maps out plans for a 45-acre site just north of the Pearl District. feet of office space and 238,000 square feet of accessory space have been Bringing MLB and a new ballpark to Portland is a major undertaking, but delivered, including the Serena Williams building that opened this year. Nike it will provide a catalyst for new office space, a vibrant ballpark district, as has hired more than 2,000 workers and expects to add another 500 or more well as other economic opportunities. Estimated to cost over $3 billion, the jobs by the project’s completion. The company recently announced the project will become one of the region's most scenic destinations, boasting name of its latest building, which is set to open by year-end 2020. Officially 2,000 linear feet of waterfront as well as a 34,000-seat stadium. dubbed the LeBron James Building, the center will house a new Nike Sport Research Lab as well as an NBA-sized basketball court and a 200-meter endurance track.

BERKADIA ECONOMIC AND DEMOGRAPHIC OVERVIEW PORTLAND, OREGON | MSA

CONSTRUCTION AND DEVELOPMENT

INTEL TRIMET MAX RED LINE EXPANSION

2.5 million 7.8 SF Expansion Mile Extension

1,750 $206 million Jobs Created Project

In Hillsboro, Fortune 500 company Intel initiated plans for a new expansion In May 2020, the Federal Transit Administration (FTA) allocated $100 million project. Intel forecasts its huge, new Hillsboro factory will increase the in federal funding through the Capital Investment Grants (CIG) Program company's Oregon workforce by nearly 9.0%, equating to 1,750 more jobs in for the 7.8-mile extension of the Tri-County Metropolitan Transportation total. The new facility will adjoin two existing factories known collectively as District of Oregon’s (TriMet) MAX Red Line from Beaverton Transit Center D1X. The latest phase will span 1.5 million square feet, expanding Intel's total to Downtown Hillsboro. Overall, the project will cost $206 million. The project facility space by 60.0%. Additionally, plans are underway for a one million- also will increase the reliability of the MAX light-rail system between Portland square-foot support structure with utility services and 2,200 parking spaces. International Airport and Beaverton Transit Center. Work on the project, Estimates indicate that the project could potentially cost up to $5 billion to which will also include six new trains, is expected to begin spring 2021 and be construct. completed in 2024.

BERKADIA ECONOMIC AND DEMOGRAPHIC OVERVIEW PORTLAND, OREGON | MSA

CONSTRUCTION AND DEVELOPMENT

RITZ-CARLTON TOWER AMAZON

$600 million 84,000 Investment SF Amazon Tech Hub

251-room 400 Luxury Hotel Jobs Created

Portland is getting the Pacific Northwest's first Ritz-Carlton hotel, bringing In Downtown Portland, an influx of new tech job opportunities is in the a new level of luxury to the metro area. The hotel, which may be the first pipeline, thanks to a recent expansion announcement from Amazon. The five-star hotel in Portland, will have251 rooms and will cost $600 million to company currently leases 84,000 square feet in Broadway Tower, which construct. Designed as a high-end tower, the Ritz-Carlton will also feature provides plenty of space for new positions. Amazon said it is expanding its 13,000 square feet of meeting space, 150 co-branded condominiums, 140,000 tech hub to hire 400 software developers and architects, product managers, square feet of office and retail space, as well as a ground-level food hall. information technology professionals, and other permanent positions. On the 20th floor, the hotel will offer panoramic views of Portland and the Technology continues to be one of Oregon's most vibrant sectors and is Cascade Mountain Range. The hotel is scheduled to open in 2023. heavily supported by the company's many warehouses and data centers throughout the state.

BERKADIA ECONOMIC AND DEMOGRAPHIC OVERVIEW PORTLAND, OREGON | MSA

CONSTRUCTION AND DEVELOPMENT

EDUCATION AND HEALTH CENTER PORTLAND INTERNATIONAL AIRPORT

$ 104 million $ Education and Health 1.3 billion Improvement Plan Center

175,000 27 million SF Development Annual Passengers by 2035

A partnership between the City of Portland, Portland State University (PSU), A series of expansions, remodels, and other improvements are underway at Oregon Health & Science University (OHSU), and Portland Community Portland International Airport (PDX). The project, dubbed PDXNext, focuses College is bringing a $104 million education and health center to the on improving travel for the airport's 20 million annual passengers. Concourse PSU downtown campus. The 175,000-square-foot building will house the E is being extended 830 feet to the east, bringing six new Southwest Airlines OHSU-PSU School of Public Health, PSU's Graduate School of Education, gates by mid-2020. The overall $1.3 billion, five-year terminal improvement and Portland Community College's dental programs, as well as the City of plan is designed to minimize impacts on travelers and airport tenants and Portland's Bureau of Planning and Sustainability. It also would include a is slated to continue at the airport until at least 2025. On the south side of community dental clinic and an office for low-cost mental health services. It's the terminal, Concourses A and B are also being extended to include more the first time the three schools would share programs in one building. With concessions and seating. These amenities will be made available by 2021. construction already underway, developers anticipate a completion date in fall 2020.

BERKADIA ECONOMIC AND DEMOGRAPHIC OVERVIEW PORTLAND, OREGON | MSA

ABSORPTION / DELIVERIES

NEW NET DELIVERIES 1,040 units ABSORPTION 1,101 units through 1Q20 through 1Q20

Greater Portland is in the midst of a massive apartment construction wave, PORTLAND METRO APARTMENT MARKET changing the metro's housing stock. As one of the most progressive cities in 6,000 the country, Portland implemented an inclusionary zoning policy to address Construction vs. Absorption the concern for affordable housing. Despite this, the amount of new inventory in the pipeline is formidable. Builders brought 1,040 units online in the first quarter of 2020, up more than 30% from the pace last year. An additional 4,000 5,600 units under construction are scheduled to come online by year-end. With the effects of COVID-19, completion of some of these projects may be delayed due to disruptions in the labor force and the supply chain.

Even with the influx of new inventory over the last decade, demand has 2,000 mostly kept pace. This trend continued at the start of 2020, as 1,101 net units were absorbed in the first three months of 2020. Even with the effects of the pandemic on the local economy, a large share of Portland residents are expected to remain renters as the rise of Portland's median home price 0 remains well above the national figure, and ownership is out of the reach for 2014 2015 2016 2017 2018 2019 2020* many. *YTD Deliveries Absorption

BERKADIA ECONOMIC AND DEMOGRAPHIC OVERVIEW PORTLAND, OREGON | MSA

RENT / OCCUPANCY

EFFECTIVE $ OCCUPANCY RENT 1,431 RATE 95.6% in 1Q20, up 3.1% from one year prior in 1Q20, up 30 basis points annually

At the start of 2020, the Portland apartment market was thriving. In the PORTLAND METRO APARTMENT MARKET last decade, developers have been bullish on the area, which resulted in a 97% Occupancy & Ask Rent $1,600 construction wave. Even with the additions, inventory growth could not meet demand as apartment occupancy averaged 95.6% in the first quarter of 96% $1,400 2020. Occupancy elevated 30 basis points year over year. At the same time, apartment rent growth continued its steady climb though tempered by the state of Oregon's 7.0% annual rent growth cap. At $1,431 per month in the 95% $1,200 first quarter of 2020, effective rent advanced 3.1% year over year.

Apartment operators in the Portland metropolitan area will face significant 94% $1,000 near-term challenges from the coronavirus pandemic. Record-high job losses will impact the ability of many tenants to pay rent. In response, Governor Kate Brown's statewide executive order suspended evictions for nonpayment 93% $800 through the end of June. While the pandemic is especially affecting the

leisure and hospitality and retail trade sectors, Portland is better positioned $1,126 $1,267 $1,330 $1,356 $1,386 $1,426 $1,431 than many other metros to cope with the outbreak because of its diversified 92% $600 economy. Some of Portland's largest employers are committed to expanding 2014 2015 2016 2017 2018 2019 2020* their operations, bringing thousands of new jobs to the market like Amazon, * 1Q20 Rent Occupancy Intel, and Nike.

BERKADIA ECONOMIC AND DEMOGRAPHIC OVERVIEW PORTLAND, OREGON | MSA

EDUCATION

HIGHER DEGREES AND EDUCATION 120.1k CERTIFICATIONS 200+ students throughout Portland offered at PSU

Portland’s highly educated workforce and excellent academic institutions provide a solid PORTLAND, OR, MSA support system for its growing industries. Approximately 39% of Metro Portland residents age 25 and over have earned a bachelor’s degree or higher, surpassing the national average LARGEST HIGHER EDUCATION of 31%. The metro area is home to a high concentration of public and private colleges, Portland Community College 35,100 containing nearly three dozen institutions in Vancouver, Oregon City, Gresham, and Portland State University 26,000 Washington County, in addition to the city of Portland. Clackamas Community College 13,400 Portland State University (PSU) is the area’s largest four-year establishment, generating Mt. Hood Community College 12,800 $1.4 billion in economic activity annually. The university offers approximately 2,100 beds across their Portland campus, leaving more than 23,900 students in need of off-campus Clark College 11,200 housing. Additionally, Portland is home to the Oregon Health & Science University, the Concordia University 5,900 state's only academic health center. The university features professional health programs and has a worldwide reputation for its research capabilities, securing more than $400 University of Portland 4,300 million a year in research funding. George Fox University 4,100 Pacific University 3,900 Lewis and Clark College 3,400

Source: listed college websites; Oregon Higher Education Coordinating Commission; Clark County Today

BERKADIA ECONOMIC AND DEMOGRAPHIC OVERVIEW PORTLAND, OREGON | MSA

LIFESTYLE AND ENTERTAINMENT

MICRO- CITY BREWERIES 76 PARKS 200+ throughout Portland in Portland

As Oregon's largest city, Portland offers an endless array of activity for its 2.5 million residents. From emerald forests to a multitude of brewpubs, the city boasts one of the most unique urban cultures in the country. There are 95 official neighborhoods that make up Portland, each offering its own unique amenities.

Portland's compact, walkable downtown is a premier destination for some of the city's best art, brews, restaurants, and shops. Rose City is renowned for its legendary microbrew culture, being home to 76 breweries and counting. The ever-expanding beer culture is complimented by the good eats lining the streets in standout food carts. Residents can wind down with a day of shopping at name-brand retailers as well as local boutiques, all with no sales tax. At night, clubs, bars, and concert venues come to life in Portland. Popular nightlife spots include Dig a Pony, Secret Society Lounge, and White Owl Social Club.

In a city as green as Portland, some of the city's top attractions are outdoor spots. There are more than 200 parks within city limits, including the sprawling wilderness of Forest Park, which spans 5,200 acres. Just northwest of the city, Sauvie Island is one of the largest river islands in the country, offering an escape for residents looking to indulge in a beach day, kayak adventure, or a leisure bike ride.

BERKADIA ECONOMIC AND DEMOGRAPHIC OVERVIEW PORTLAND, OREGON | MSA

TRANSPORTATION

PORTLAND TRIMET AIRPORT 19.9m PASSENGERS 76.0m passengers served in 2019, served systemwide in 2018 unchanged year over year

The city of Portland is located in the northwestern corner of Oregon at the PORTLAND INTERNATIONAL AIRPORT confluence of the Columbia and Willamette Rivers. Approximately 65 miles inland from the Pacific Ocean on the Oregon-Washington state border, Portland is situated between the Cascade Mountain Range to the east and the Coast Ranges to the west. Interstates 5, 84, and 205 connect Portland to other cities in the western United States.

Located 11 miles from Downtown Portland, the Portland International Airport (PDX) served 19.9 million passengers in 2019, nearly on par with the prior year's pace.

TriMet provides convenient public service throughout the Portland area. The agency runs the Metropolitan Area Express (MAX) Light Rail Services, which operates the following lines in Greater Portland: Blue, Red, Yellow, Green, and Orange.

Sources: Berkadia; Tetrad; U.S. Census Bureau; U.S. Bureau of Labor Statistics; Fortune/Money.CNN.com; Forbes; WalletHub; NerdWallet; Moody’s; Wikipedia; Axiometrics; City of Portland; State of Oregon; Port of Portland; Portland Business Journal; Portland Development Commission; Portland Business Alliance; Metro Data Resource Center; Oregon State University; State of Washington; Oregon Health & Science University; Portland International Airport; Sustainable Business Oregon; Peterson’s; Portland State University; Clark College; George Fox University; University of Portland; Portland Economic Development Strategy; NJCAA; Port of Vancouver USA; Greater Portland; Oregon Convention Center; Pamplin Media Group; Business View Magazine; National Association of REALTORS®; TriMet; ENRNorthwest; Portland Monthly; Commercial Property Executive; The Oregonian; Artforum; KUOW; Prosper Portland; The Akeny Blocks; Next Portland; Condé Nast; Willamette Week; Business Wire; The Waterfront-Vancouver Washington USA; KGW8; Hyatt; Oregon Metro; Entrepreneur; Technology Association of Oregon; Travel Portland; Clark County; The Business of Fashion; A&O Portland; Oregon Business. BERKADIA ECONOMIC AND DEMOGRAPHIC OVERVIEW PORTLAND, OREGON | MSA

BY THE NUMBERS

TOTAL POPULATION MEDIAN AGE 2010 2,226,009 2010 37.4 2020* 2,491,241 2020* 39.7 2025* 2,649,051 2025* 41.1

Change Rate (2020 - 2025) 6.3%

TOTAL HOUSEHOLDS MEDIAN HOME PRICE 2010 867,794 May - 2019 $402,409 2020* 976,155 May - 2020 $428,948

2025* 1,039,943 Change Rate Y-o-Y 6.6% Change Rate (2020 - 2025) 6.5%

MEDIAN INCOME EMPLOYMENT 2010 $59,245 May - 2019 1,222,400 2020* $71,771 May - 2020 1,075,700

2025* $83,797 Change Rate Y-o-Y (12.0%) Change Rate (2020 - 2025) 16.8%

RENT SHARE OF WALLET RENT VS. OWN National - 2020 29.0% Average Mortgage Payment** $2,007 Portland Metro - 2020 23.9% Effective Rent $1,431

National - 2025* 29.4% Difference $576 Portland Metro - 2025* 22.5% *Projected *Projected **30-yr fixed; 20% down; 3.5% interest rate; 1.07% OR property taxes; $1,000 Annual Rent / Median Household Income annual homeowner’s insurance BERKADIA ECONOMIC AND DEMOGRAPHIC OVERVIEW A Berkshire Hathaway and Jefferies Financial Group company