The Greater Salt Lake Area Multifamily Market

THE GREATER SALT LAKE AREA MULTIFAMILY MARKET

THE MOST COMPREHENSIVE MULTIFAMILY REPORT | 2019 REVIEW + 2020 OUTLOOK PREFACE TABLE OF

CBRE is pleased to release the 2020 Greater Salt Lake Area Multifamily Market Report, the most current and comprehensive CONTENTS multifamily data available for the Salt Lake Area/Wasatch Front market. Produced by Eli Mills and Patrick Bodnar of CBRE, this report has been assembled to empower the decision making of multifamily professionals active in the Utah market.

This report has been prepared with current data sourced from a survey of over half the multifamily market (60,000+ units) along the Wasatch Front Area inclusive of Salt Lake, Utah, Davis and Weber Counties. Minimum reporting requirements were identified for each city and county by class, type and size.

Data contributions and validations to this publication were made by: • CBRE Research • Utah Department of Economics • CBRE Econometric Advisors • University of Utah Bureau of Economics and Business Research • Yardi Matrix • Construction Monitor • Axiometrics • CoStar • Western States Multifamily

Whatever your multifamily needs may be, please reach out to us. CBRE has the most comprehensive data on the market and can provide information on a macro or micro level based on class, city, submarket, zip code, location, age, size, proximity to rail stops, and many other variations.

CBRE consistently leads the market, with national multifamily investment sales totaling over $33.3 billion in 2019 (Source: Real Capital Analytics). As the leader in multifamily sales every year since 2001, the exposure of CBRE is second-to-none. With 65 locations and over 300 multifamily professionals, including direct lending services, CBRE’s unparalleled multifamily platform has a competitive presence in Utah and an enhanced investment reach into the multifamily space, providing our clients with the greatest market exposure available.

We welcome your inquiries into the Utah multifamily market and encourage you to contact us with any questions.

Eli Mills Patrick Bodnar

Eli Mills Patrick Bodnar Institutional Properties Institutional Properties Senior Vice President Vice President

For a market analysis on your property Hardware Station, recently or more information contact: completed, is one of Downtown Diane Aubry Colton Butterfield Annie Avila Ashley Mills Eli Mills Patrick Bodnar Salt Lake City’s most luxurious and distinct apartment communities. Client Services Multifamily Market Client Services Client Services Senior Vice President Vice President Team Lead Researcher Coordinator Coordinator +1 801 869 8029 +1 801 869 8053 [email protected] [email protected] GREATER 20 SALT LAKE AREA MULTIFAMILY REPORT 20

EXECUTIVE SUMMARY

For the third year in a row, the Greater Salt Lake Area has realized HEADLINES TO KNOW CBRE total multifamily sales in excess of $1 billion dollars and demand for multifamily assets has never been greater. Investor interest is fueled by SALT LAKE CITY strong economic fundamentals, better yield spreads, and a lower overall RENT MULTIFAMILY basis compared to neighboring states. Job growth was 3.3% in 2019 and is the principal reason for the significant in-migration realized—not $1,185/MO. 5.6% YOY just last year, but for the previous four years. 2019 finished with an 46% estimated in-migration number of 25,192. Unemployment remains low VACANCY SALES #1 MARKETSHARE at 2.3% (December 2019), the lowest in the state’s history, and Utah IN THE added 51,454 jobs over the past year. VOLUME 2019 MARKET 2X THE VOLUME OF THE NEAREST COMPETITOR 4.0% $1.26B Looking into the first quarter of 2020, the new year is starting off strong NO CHANGE with well over $600 million under contract or coming to market. Strong YEAR-OVER-YEAR fundamentals will keep the attention of those seeking to purchase multifamily assets and will continue to entice new entrants into the PIPELINE LARGEST TRANSACTIONS 3 YEARS RUNNING market. The Greater Salt Lake Area multifamily market has a very bright 2019 DELIVERIES future. It is a vibrant, economic climate encouraging growth. People 5,028 UNITS continue to come for the many opportunities. Salt Lake’s transportation infrastructure—including the new Salt Lake International Airport, expanding commuter and light rail, rapid transit bus, and improved freeways and roads—conveniently allows people to move throughout LOOKING FORWARD the market. Now more than ever, apartment properties are connected to the entire community, providing an unparalleled lifestyle. With these SALES CAP RATES attributes and many others, the multifamily sector in Utah will continue to deliver predictable and profitable returns in 2020. INCREASE IN SLIGHT TOTAL VOLUME COMPRESSION TRANSACTION DIVERSITY*

DEAL SIZE # OF DEALS SALES VOLUME PIPELINE 4TH WEST FAIRSTONE AT RIVERVIEW PARK AT 2020 EXPECTED DEMAND APARTMENTS & ALPINE MEADOWS CITY CENTER <$10 Million 63 $193,458,024 DELIVERIES ABSORBING 6,296 UNITS SUPPLY 493 UNITS 714 UNITS 330 UNITS $10-25 Million 27 $434,590,212 STATE RECORD RENT CONCESSIONS FOR: HIGHEST HIGHEST PRICE PER PSF EVER +$25 Million 10 $628,900,000 STRONG TEMPORARY - SALES PRICE UNIT FOR PAID FOR GROWTH INCREASE - PRICE PER UNIT MID- 90’S SUBURBAN DOWNTOWN - PRICE PSF PRODUCT PRODUCT Total 100 $1,256,948,236

RECORD-SETTING EXPERIENCE Source: CBRE, Inc. *Multifamily Transactions.

GREATER SALT LAKE AREA INDUSTRIAL SUBMARKET SNAPSHOT OFFICE SUBMARKET SNAPSHOT The Greater Salt Lake Area, also known as the Wasatch Front, consists of four counties—Salt Lake, Utah, Davis and Weber. Salt Lake City is in the center of the Wasatch Front immediately accessible to commuter rail, light rail and the Salt Lake International Airport, which is just 10 minutes * * from downtown by car and 15 minutes via light rail. Approximately 2.5 million people (80% of Utah’s population) live within this four-county area. $0.50 NNN/MO 3.4% 7.23M SF $23.79 FSG 10.8% 3.68M SF AVG. ASKING VACANCY UNDER AVG. ASKING VACANCY UNDER THE WASATCH FRONT UTAH ACCOLADES LEASE RATE RATE CONSTRUCTION LEASE RATE RATE CONSTRUCTION

COMPANY SQUARE FOOTAGE SUBMARKET COMPANY SQUARE FOOTAGE SUBMARKET ECONOMY Blackstone 1,556,138 SF California Ave. Submarket Northrup Grumman 250,000 SF Davis County

INTERS TATE WEBER Amazon 1,300,000 SF West Jordan Submarket Divvy Pay 150,000 SF Draper Submarket 15 COUNTY STATE FOR ECONOMIC OUTLOOK AWS 531,932 SF Airport Submarket Weave 150,000 SF Utah County North Submarket OGDEN #1 11 YEARS RUNNING (ALEC) Source: CBRE Research, 2019. *Trend arrows indicate year-over-year change. Source: CBRE Research, 2019. *Trend arrows indicate year-over-year change.

LAY TON STATE FOR JOB GROWTH IN 2019 2019 was another banner year across the Salt Lake industrial market. An abundance of incoming supply (over 3.6 msf) reaffirms a strong GREAT INTERS TATE SALT 84 #1 (3.3% | U.S. 1.4%) Over 4 million square feet (msf) of construction was completed in confidence in the marketplace. Tech and financial service firms are LAKE DAVIS COUNTY 2019, short of 2018’s all-time record of 4.7 msf. A record-breaking driving forces. Although positive net absorption was down in 2019, 7.2 msf remains under construction, much of that speculative space. record-high construction exists with 62% being pre-leased, the majority

INTERS TATE 80 Vacancy was 3.4% at the close of 2019. Total lease activity for 2019 of which is in the Downtown CBD.

SALT LAKE CITY was 6.5 msf with Amazon leasing 2.1 msf, accounting for 32% of the UTAH IS NATURE’S year’s total lease activity. RENT AFFORDABILITY ACROSS WESTERN MARKETS INTERS TATE 80 SALT LAKE PLAYGROUND COUNTY Over the last five years Salt Lake City’s distribution employment has Part of Salt Lake’s growth story is that of investors searching for yield HOME TO: MASSIVE grown by 2.5%, while manufacturing employment has grown by 2.6%. in untapped secondary markets that offer the ability to grow rents. The Industrial employment is projected to grow by 1,500 jobs during the affordability quotient—coupled with the influx of high-paying jobs— INTERS TATE 15 MAJOR 15 AIRPORT 2019-2024 period. increases the interest of investors to this market. REDESIGN SKI RESORTS UTAH 5 NATIONAL WESTERN MARKET RENT TO INCOME RATIO COMPARISON COUNTY $4.1 BILLION PARKS RETAIL SUBMARKET SNAPSHOT UTAH PROVO $7,000 70% LAKE Avg Monthly Wages Avg Monthly Rent % of Income to Rent 7 NATIONAL * $6,500

INTERS TATE PUBLIC TRANSIT MONUMENTS 15 REACHES $6,000 60% 5 NATIONAL $17.95 NNN 6.8% 177,568 SF $5,500 $6,237 FORESTS AVG. ASKING VACANCY NEW $6,218 51% 75% LEASE RATE RATE CONSTRUCTION $5,000 49% 50% 43 STATE OF THE $4,500 $5,326 COMPANY SQUARE FOOTAGE SUBMARKET LIFESTYLE FRAMEWORK PARKS POPULATION $4,871 Target 94,000 SF Central West Quadrant $4,000 40% 2019 POPULATION GROWTH RATE COMPARISON 34% $4,311

$3,500 $4,237 EoS Fitness 52,810 SF Central West Quadrant 31% 31% 32% 28% $3,844 GREATER SALT LAKE DEMOGRAPHICS EoS Fitness 47,000 SF Central West Quadrant $3,000 30% POPULATION Source: CBRE Research, 2019. *Trend arrows indicate year-over-year change. $2,500 $3,192 GROWTH RATE 3.2 LOWEST MEDIAN $2,000 20%

1.7% 2019’s leasing remained strong, with food and fitness being the most $2,585 MILLION 31.4 YRS AGE IN NATION active industries, accounting for 14% and 25% of total lease activity, $1,500

U.S. $1,915 PEOPLE NATIONAL MEDIAN: 38.2 respectively. A number of big box spaces were filled resulting in vacancy $1,000 10% POPULATION $1,583 $1,448

decreasing 40 basis points (bps) year-over-year to 6.8%. Re-purposing $500 $1,223

GROWTH RATE $1,193 0.7% or redevelopment of retail centers continues to abound. Construction 0 0% in Salt Lake was limited to mostly smaller in-fill shops and pads. SALT LAKE CITY PHOENIX SEATTLE DENVER PORTLAND LOS ANGELES SAN FRANCISCO Source: Kem C. Gardner Policy Institute 2019 Economic Report to the Governor. Source: CBRE, Inc., Federal Reserve Bank of St. Louis.

SILICON SLOPES – UTAH’S TECH CORRIDOR SALT LAKE CITY INTERNATIONAL Utah’s technology corridor, known as Silicon Slopes; has become the MAP OF SILICON SLOPES AIRPORT EXPANSION MAJOR WESTERN U.S. AIRPORT HUB destination for technology, biotechnology, education, retail and creative WITHIN A 2.5 HOUR FLIGHT OF 50% OF THE U.S. POPULATION firms that thrive in the presence of the Salt Lake Metro’s highly educated and DENVER 4.1B 2024 24,000 1 hr. 30 mins. CHICAGO collaborative workforce. The epicenter of Silicon Slopes is located at the 90 MILES SEATTLE 3 hrs. 30 mins. PROJECT COST COMPLETION JOBS CREATED 2 hours convergence of Utah’s two most populated counties: Salt Lake and Utah. DATE $1B IN WAGES NEW YORK CITY Employers locating here can easily recruit employees from both counties. FROM 5 hrs. 15 mins. GOLD SAN FRANCISCO WASHINGTON D.C. Silicon Slopes, a two-hour flight from Silicon Valley, has attracted a host OGDEN 1 hr. 45 mins. 4 hrs. 40 mins. CHARLOTTE of tech companies such as Adobe, Microsoft, IM Flash (Intel/Micron), Dell STATE OF THE ART DESIGNED FOR SUSTAINABLE DESIGN LOS ANGELES 4 hrs. 20 mins. TO PROVO 1 hr. 45 mins. LEED GOLD CERTIFICATION® ATLANTA EMC, eBay, E*TRADE, Oracle, Vivint Solar, Workfront, Digicert, Xactware, FUNCTIONALITY DECADES TO COME SAN DIEGO 4 hours 1 hr. 50 mins. and the National Security Administration. With a predominantly young ------PHOENIX ORLANDO Read more here. 1 hr. 30 mins. 4 hrs. 30 mins. NASHVILLE workforce in the Salt Lake Metro, employers are finding great value in 3 hrs. 45 mins. DALLAS selecting office space in a market with convenient access to retail and 2 hrs. 45 mins. residential options that support a first-class quality of lifestyle. TECH SALT LAKE METRO’S ROBUST TRANSIT NETWORK “Silicon Slopes’ deep talent pool for software engineers and EPICENTER other technical jobs is thriving. That’s why we plan to keep — Utah has invested heavily in light (TRAX) and high-speed (FrontRunner) rail systems, providing transportation alternatives to 80% of the state’s investing in this community.” SANDY population. This award-winning transportation system extends from — Aaron Skonnard Ogden to Provo, a 90-mile area—with buses and van pools, it covers CEO and Co-founder of Pluralsight TO LEHI a 1,600-square-mile area. Long-range plans have included expanding TRAX and more bus service A SAMPLING OF TECH TENANTS’ INFLUENCE ON UTAH’S ECONOMY* EMPLOYERS ARE FLOCKING TO UTAH Rendering of future SLC International Airport to Lehi and the Point of the Mountain area. The redevelopment of the Many of the largest employers in the U.S. are locating in Utah to take Utah State Prison site in Draper has increased interest in providing light COMPANY JOBS CREATED $ VALUE advantage of the low costs, highly educated employment base, ease rail to this area sooner, although no decisions have been made yet. of air travel and an affordable lifestyle that allows for recruiting out-of- AN EASILY ACCESSIBLE MAJOR WESTERN MARKET 2,464 jobs $320M state employees. The area provides an incredible lifestyle destination AWARD-WINNING TRANSPORTATION SYSTEM with an abundance of outdoor recreation within a few minutes’ drive The accessibility of Salt Lake Metro is one of the reasons for the city’s continued growth. Over 50% of the U.S. population can be reached 1,500 jobs $200M of most urban communities. Surrounded by mountains, lakes and canyons, residents have unparalleled access to year-round recreation. within a 2.5-hour flight of Salt Lake City, and a day trip from many major markets is easily possible. The Salt Lake International Airport is 4,342 jobs $91M Salt Lake is continually one of the leading metros in the U.S. for 78,489 80% the 23rd busiest airport in the U.S. and is currently undergoing a $4.1 economic, employment, and population growth. In 2019 a record ANNUAL NATIONALLY RANKED OF UTAH’S billion expansion to accommodate future growth. RAIL PASSENGERS TOP TRANSPORTATION POPULATION SERVED 1,260 jobs $90M 51,454 jobs were added. Economic studies project continued growth SYSTEM long into the future. The Salt Lake Metro is growing on all fronts, with The Salt Lake Metro has been coined “The Crossroads of the West.” 2,200 jobs $80M continued construction and rent growth in all property types. Most major western markets can be reached within an 11-hour drive. Over the last 10 years, a total of 94,400 new jobs were announced, I-15 and I-80 run through Salt Lake giving it extraordinary access to with a capital investment of nearly $10 billion.* interstate distribution. Additionally, there is 1,700 miles of rail track 46,577,166 464,505 146 that runs through Utah. TRIPS SYSTEM FRONTRUNNER LIGHT RAIL OTHER NOTABLE TECH TENANTS WIDE BOARDINGS IN 2018 VEHICLES 10-YEAR JOB GROWTH OF NEW EMPLOYERS TO UTAH* Salt Lake has an established Foreign Trade Zone, an area the U.S. considers exterior to U.S. commerce through federal designation. The NEW JOBS state of Utah has gained significant momentum working with the rail $10B lines to establish an inland port within the Foreign Trade Zone. This 1,400 80% 401 SQUARE MILES OF UTAH’S VANPOOL 94,400 INVESTED massive distribution hub located on the city’s westernmost side will fuel SERVED POP. SERVED GROUPS significant additional growth. Read more here. Source: EDCUtah, 2018. *Announced jobs Source: EDCUtah. *Compiled data of announced jobs and investments through EDCUtah. Rendering courtesy of Salt Lake International Airport. Source: Utah Transit Authority.

TRANSACTION VOLUME & CAP RATES SUPPLY VS. DEMAND AND ABSORPTION Sales activity in Utah is expected to remain well over $1 billion in CAP RATES - 2019 - ALL UNITS The site of a new apartment community at some stage of construction CONSTRUCTION SUMMARY 2020. Competition for multifamily assets will remain fierce as many is quite common across the market. The Greater Salt Lake Area’s well-capitalized investors seek to get a foothold in the marketplace. robust development is well matched to the continued demand. COUNTY COMPLETED 2015 - 2019 UNDER CONSTRUCTION POTENTIAL STARTS Value-add and core-plus properties will continue to have the greatest Salt Lake 13,338 7,834 7,730 interest. Recent cap rate compression is due to favorable interest rates, CLASS A CLASS B CLASS C Currently, there are approximately 39 properties under construction scarcity of product in the western U.S., and an enormous amount of 4.84% 5.24% 5.57% for a total of 7,834 total units in Salt Lake County that will deliver Utah 6,897 2,349 3,139 capital chasing opportunities. in the next 24 months. Approximately 66% of the units in Salt Lake Davis 1,595 934 2,079 County delivered to the marketplace have already been leased. Weber 1,753 1,184 2,259 NOTABLE SALES TRANSACTIONS This leaves only a three-month supply of units for what has actually Totals 23,583 12,301 15,207 been delivered to the market. Developers have seen first-hand the pent-up demand in many submarkets; currently there are a total of Source: CBRE, Inc. and Western States Multifamily. 12,301 units under construction throughout the Greater Salt Lake GREATER SALT LAKE AREA COMPLETIONS Area. 9,000 Though some submarkets are experiencing short-term concessionary 8,000 wars, the overall rental market is strong, with most properties 7,000 maintaining high occupancy levels. Downtown Salt Lake City is one 6,000 of those submarkets as there are five properties currently in lease- 5,000

up, most of which are at least 50% leased. Heavier concessions will 4,000 5,381 5,087 5,059 5,028 4TH WEST APARTMENTS AVIDA THE ZELLER eventually diminish upon stabilization. A little over 4,200 units are 3,000 493 UNITS 400 UNITS 293 UNITS slated to be delivered over the next 12 months in Salt Lake County. 2,000 3,006 With Salt Lake’s economic vitality and current job growth at 3.3%, 1,000 we can expect strong absorption, which will continue to keep up 0 WESTERN MARKETS – CAP RATES & PRICING PER UNIT SALT LAKE METRO MULTIFAMILY SALES VOLUME >50 UNITS ($,MILLIONS) 2015 2016 2017 2018 2019 with new supply. Source: CBRE, Inc. 6.5% $450,000 $1,600 CAP RATE PRICE/UNIT $1,500 $1,437 6.0% EXPECTED DELIVERIES BY COUNTY 2020-2022 $400,000 $1,400 5.5% 5.0% 5.0% 4.8% $1,300 6,000 5.0% $350,000 4.5% 4.6% $1,200 4.3% 4.3% 4.5% $381,821 $1,100 $1,065 5,000 $300,000 $1,038

4.0% $351,143 $1,000 $900 4,000 4,244 3.5% $250,000 $800 $703 3.0% $200,000 $644 3,000

$266,927 $700 2.5% $600 2,892

$226,125 $150,000 $500 2,000 2.0% $201,626

$179,212 $400 1.5% $100,000 $178,131 $300 1,000 1.0% 849 966 $50,000 $200 698 696 534 507 427 0 488 0 0.5% $100 0 SALT LAKE COUNTY UTAH COUNTY DAVIS COUNTY WEBER COUNTY 0.0% $0 $0 SALT LAKE CITY PHOENIX LAS VEGAS PORTLAND DENVER SEATTLE LOS ANGELES 2015 2016 2017 2018 2019 2020 2021 2022 2020 2021 2022 2020 2021 2022 2020 2021 2022 Source: CBRE Inc., Real Capital Analytics. Source: CBRE Inc., Real Capital Analytics. Source: CBRE, Inc.

GREATER SALT LAKE SUMMARY GREATER SALT LAKE HISTORICAL RENTAL RATES & VACANCY: SUMMARY TABLES BY COUNTY AND CITY

As one of the 50 states with the best economic outlook, Utah has its house in order. It does everything right to encourage business development 2017 2018 2019 and job creation. Utah has a low, flat-rate income and corporate tax of below 5%. There is no death tax, it is a right-to-work state where workers SALT LAKE COUNTY RENT SF $/SF VACANCY RENT SF $/SF VACANCY RENT SF $/SF VACANCY do not have to join unions, and Utah has some of the best health outcomes in the nation. Jobs are plentiful and wages are on the rise. Rental Cottonwood Heights $1,128 928 $1.21 3.1% $1,222 932 $1.31 4.4% $1,261 940 $1.34 3.2% rates have followed suit with 2019 posting a 5.6% year-over-year rent increase amidst a low 4.0% vacancy. Utah remains a contender to attract Draper $1,151 959 $1.20 3.1% $1,288 1,018 $1.26 2.5% $1,361 1,010 $1.35 2.8% aggressive capital for multifamily properties. Herriman - - - - $1,345 1,178 $1.14 5.8% $1,361 1,129 $1.21 3.8% Midvale $1,072 903 $1.19 4.0% $1,113 833 $1.34 3.4% RENTAL RATES BY COUNTY 2017 - 2019 $1,153 844 $1.37 4.5% Murray $1,073 874 $1.23 3.5% $1,087 817 $1.33 5.0% $1,174 913 $1.29 5.4% Avg. Monthly Rent/Unit $/SF Riverton $1,342 1,204 $1.12 2.7% $1,359 1,204 $1.13 2.9% $1,390 1,204 $1.15 2.4% $1,400 $2.00 $1,218 Salt Lake City $1,104 760 $1.45 4.6% $1,249 802 $1.56 4.6% $1,325 774 $1.71 5.0% $1,153 $1,138 $1,181 $1,122 $1,185 $1,200 $1,087 $1,097 $1,060 $1,102 $1.75 $1,005 $1,059 Sandy $1,131 844 $1.34 5.1% $1,189 890 $1.34 4.4% $1,288 906 $1.42 4.8% $937 $995 $1.50 $1,000 $864 South Jordan $1,261 1,050 $1.20 4.7% $1,323 1,044 $1.27 4.7% $1,352 1,057 $1.28 4.0% $1.25 South Salt Lake $898 840 $1.07 4.7% $956 841 $1.14 4.0% $1,061 817 $1.30 5.1% $800 $1.38 $1.33 $1.33 $1.30 $1.00 Taylorsville $1,011 979 $1.03 4.4% $1,073 847 $1.27 3.2% $1,097 828 $1.32 3.2% $1.27 $1.25 $1.25 $1.24 $600 $1.20 $1.18 $1.16 West Jordan $1,016 801 $1.27 5.3% $1,098 887 $1.24 4.0% $1,180 943 $1.25 4.1% $1.12

$1.11 $0.75 $1.01

$400 $0.90 West Valley City $1,047 845 $1.24 3.8% $1,024 813 $1.26 5.0% $1,029 798 $1.29 4.4% $0.50 Downtown $1,307 781 $1.49 1.6% $1,447 852 $1.70 5.5% $1,517 854 $1.78 4.7% $200 $0.25 Overall $1,087 875 $1.24 4.1% $1,153 868 $1.33 4.3% $1,218 886 $1.38 4.4% $0 $0.00 Source: CBRE, Inc. 2017 2018 2019 2017 2018 2019 2017 2018 2019 2017 2018 2019 2017 2018 2019 SALT LAKE COUNTY UTAH COUNTY DAVIS COUNTY WEBER COUNTY WASATCH FRONT 2017 2018 2019 Source: CBRE, Inc. UTAH COUNTY RENT SF $/SF VACANCY RENT SF $/SF VACANCY RENT SF $/SF VACANCY Orem $1,079 947 $1.14 4.9% $1,148 968 $1.19 4.6% $1,167 964 $1.21 3.6% HISTORICAL RENTAL & VACANCY RATES Pleasant Grove $1,099 997 $1.10 4.8% $1,124 978 $1.15 4.9% $1,183 1,006 $1.18 1.9%

2017 2018 2019 Provo $746 611 $1.22 1.6% $741 611 $1.21 0.6% $789 641 $1.23 1.5% GREATER SALT LAKE RENT SF $/SF VACANCY RENT SF $/SF VACANCY RENT SF $/SF VACANCY Overall $1,097 943 $1.16 4.1% $1,138 944 $1.20 4.3% $1,181 944 $1.25 3.2% Salt Lake $1,087 875 $1.24 4.1% $1,153 868 $1.33 4.3% $1,218 886 $1.38 4.4% Source: CBRE, Inc.

Utah $1,097 943 $1.16 4.1% $1,138 944 $1.20 4.4% $1,181 944 $1.25 3.2% 2017 2018 2019 Davis $1,005 906 $1.11 3.5% $1,060 846 $1.25 3.0% $1,102 848 $1.30 3.0% DAVIS COUNTY RENT SF $/SF VACANCY RENT SF $/SF VACANCY RENT SF $/SF VACANCY Weber $864 960 $0.90 3.2% $937 927 $1.01 2.5% $995 889 $1.12 3.0% Bountiful $979 901 $1.09 3.8% $1,081 958 $1.13 2.3% $1,107 896 $1.24 0.8% Greater Salt Lake Averages $1,059 896 $1.18 4.0% $1,122 880 $1.27 4.0% $1,185 889 $1.33 4.0% Clearfield $889 775 $1.15 4.8% $968 783 $1.24 3.6% $1,036 866 $1.20 3.4% Source: CBRE, Inc. Layton $978 932 $1.05 3.3% $981 787 $1.25 3.8% $1,004 723 $1.39 2.5% North Salt Lake $1,054 914 $1.15 4.7% $1,205 919 $1.31 2.6% $1,238 908 $1.36 4.9% GREATER SALT LAKE CURRENT RENTAL & VACANCY RATES GREATER SALT LAKE TAKEAWAYS Overall $1,005 906 $1.11 3.5% $1,060 846 $1.25 3.0% $1,102 848 $1.30 3.0% BY CLASS CLASS A CLASS B CLASS C 5.6% RENT GROWTH FOR 2019 Source: CBRE, Inc. CATEGORY RENT $/SF VACANCY RENT $/SF VACANCY RENT $/SF VACANCY 2017 2018 2019 Studio $1,194 $2.18 $788 $1.95 $701 $1.97 WEBER COUNTY RENT SF $/SF VACANCY RENT SF $/SF VACANCY RENT SF $/SF VACANCY 1 Bed 1 Bath $1,182 $1.58 $1,006 $1.51 $854 $1.46 5% YEAR-OVER-YEAR RENT GROWTH FOR SEVEN YEARS IN A ROW 2 Bed 1 Bath $1,321 $1.34 $1,129 $1.27 $992 $1.19 Ogden $772 870 $0.89 4.2% $846 827 $1.02 2.6% $887 787 $1.13 2.8% 2 Bed 2 Bath $1,427 $1.34 $1,269 $1.26 $1,104 $1.15 Roy $934 1,127 $0.83 3.2% $992 1,081 $0.92 4.2% $1,087 1,078 $1.01 2.5% 3 Bed 2 Bath $1,675 $1.24 $1,430 $1.15 $1,198 $1.03 NO CHANGE IN 4% VACANCY FOR FOUR YEARS STRAIGHT West Haven $707 834 $0.85 3.1% $762 893 $0.85 0.4% $843 893 $0.94 2.3% Overall $1,352 $1.42 4.3% $1,168 $1.30 3.7% $932 $1.33 4.5% Overall $864 960 $0.90 3.2% $937 927 $1.01 2.5% $995 889 $1.12 3.0% Source: CBRE, Inc. Source: CBRE, Inc.

SALT LAKE COUNTY DOWNTOWN VS. SUBURBAN MULTIFAMILY STATS

HISTORICAL RENTAL RATES BY UNIT TYPE (AVERAGE MONTHLY AND PER SQ. FT. RATES) Rents have remained strong in Downtown, realizing a 5.0% year-over- VACANCY COMPARISON BY LOCATION year growth in 2019. Even with new supply being delivered to the 2017 2018 2019 market, rents are on the climb and all stabilized apartment properties $1,800 $2.75 6.0% continue to perform with high occupancies. Additionally, the tenant 5.5% $2.50 demographics are generally the strongest in the market with many 4.7% $1,600 $1,469 $1,533 5.0% high-income tenants. The extension of the lifestyle experience delivered 4.2% $1,368 $1,373 $2.25 4.5% $1,400 $1,313 $2.21 $1,242 from the downtown community amenities—with many excellent dining, 4.0% $2.09 $1,218 $2.00 $1.99 $1,153 retail and entertainment option—draws the attention of the young $1,200 $1,111 $1,087 3.5% $1,063 $1,023 $1,065 $1.75 professionals moving to Salt Lake City. These are just a few of the $969 $1,015 3.0% $1,000 $891 $976 many reasons why investors and developers alike continue to seek out $827 $1.50 2.5% $1.51 $1.58 the downtown Salt Lake City submarket. $1.33 $1.38 2.0% $800 $1.41 $1.30 $1.32 $1.25 $1.22 $1.28 $1.21 $1.21 $1.24 Likewise, the suburban market has continued to be very robust, posting 1.5% $1.13 $1.10 $1.16 $1.00 $600 a 5.7% year-over-year rent growth in 2019. Vacancies have held 1.0% $0.75 steady at 4% for four years in a row. Class B assets experienced a rent 0.5% $400 growth of 6.4%, while Class A asset rents grew at 4.6% year-over-year. 0.0% $0.50 DOWNTOWN SUBURBAN The greater rent growth in Class B properties is largely due to B assets $200 $0.25 Source: CBRE, Inc. drafting off the higher rents being realized by Class A assets, and the $0 $0.00 fact that many B assets are being renovated, further pushing rents. STUDIO 1 BED 1 BATH 2 BED 1 BATH 2 BED 2 BATH 3 BED 2 BATH OVERALL ( ) Source: CBRE, Inc. DOWNTOWN RENTAL RATE COMPARISON BY CLASS A & B ONLY Downtown Salt Lake City has continued to lead the market with the DOWNTOWN CLASS A CLASS B The Wall Street Journal recently published a headline story that SALT LAKE COUNTY TAKEAWAYS delivery of new apartment units. Approximately 15% of the entire Salt stated, “Why Utah Has Become America’s Economic Star.” Printed Lake County apartment inventory is located downtown, with a total CATEGORY RENT $/SF RENT $/SF December 9, 2019 and authored by Brian Peckford, the story reported of 15,236 units. Presently there are 2,400 units under construction CLASS B RENT GROWTH WAS 6.4% Studio $1,290 $2.31 $1,147 $2.75 on the results of an index of economic competitiveness published by comprising a total of 13 properties. Of the approximate 1,000 the American Legislative Exchange Council, where every year for the units actually delivered to the downtown market, a little over 600 1 Bed 1 Bath $1,512 $2.10 $1,249 $1.83 past 12 years Utah has come out on top, beating all other states. DOWNTOWN PSF RENT IS $.47 GREATER THAN SUBURBAN MARKET have been leased. More units are on the way—1,400 to be exact. 2 Bed 1 Bath $1,816 $1.93 $1,401 $1.28 A pro-business, pro-job culture and efficient economic policies Current conditions have properties offering slightly more aggressive 2 Bed 2 Bath $1,916 $1.80 $1,543 $1.55 has Utah attracting extremely favorable demographics. Boasting a concessions in an effort to capture tenants. However, Salt Lake’s robust 3 Bed 2 Bath $2,559 $2.03 $1,665 $1.19 highly educated, young population, Utah has a naturally thriving 47 PROPERTIES PRESENTLY UNDER CONSTRUCTION demand for apartments, fueled by consistent in-migration and strong multifamily sector poised for continued success and considerable economic growth, have kept absorption dependable. Overall $1,707 $1.96 $1,391 $1.64 growth. Source: CBRE, Inc.

The dynamic Salt Lake Valley is the center of commerce and business activity for Utah. Recent infrastructure development has been robust SUBURBAN RENTAL RATE COMPARISON BY CLASS (A & B ONLY) and will continue to deliver further economic vibrancy to the Salt SUBURBAN CLASS A CLASS B Lake market. The Salt Lake International Airport, with its $4.1 billion redevelopment; commuter rail extending to Ogden to the north and CATEGORY RENT $/SF RENT $/SF Provo to the south; and UTA’s Trax Light Rail network connecting Studio $1,109 $1.97 $931 $1.87 people to all major business, retail and entertainment centers; has 1 Bed 1 Bath $1,142 $1.51 $999 $1.52 Salt Lake poised to accommodate its rapidly growing population. 2 Bed 1 Bath $1,329 $1.31 $1,136 $1.30 Favorable market conditions compared to other neighboring western 2 Bed 2 Bath $1,395 $1.27 $1,261 $1.26 state markets will keep most investors and developers focused on 3 Bed 2 Bath $1,671 $1.24 $1,465 $1.18 the Salt Lake market for the foreseeable future. Overall $1,315 $1.35 $1,183 $1.30 Source: CBRE, Inc.

SALT LAKE COUNTY

OVERALL VACANCY & RENT SALT LAKE COUNTY UNITS DELIVERED/PROJECTED 2015-2022*

10.0% $1,300 PROJECTED VACANCY (%) RENT ($) 2018 2019 9.0% $1,200 6,000 VACANCY RATE VACANCY RATE 8.0% $1,100 7.0% $1,000 5,000 3.9% 4.4% 6.0% $900 4,244 5.0% $800 3,804 UNITS DELIVERED 4.0% $700 4,000 RENTAL RATE RENTAL RATE 3.0% $600 2015 to 2019 2,851 2,892 2.0% $500 2,795 13,338 $1,153 $1,218 3,000 1.0% $400 2,239 0.0% $300 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2,000 1,649 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 698 PROJECTED DELIVERIES Vacancy (%) 6.8% 8.6% 6.2% 5.2% 5.0% 5.1% 4.9% 4.1% 3.2% 4.1% 4.3% 4.4% 1,000 2020 to 2022 Rent ($) $771 $739 $755 $791 $810 $850 $892 $960 $1,027 $1,087 $1,153 $1,218 7,834 0 YOY Rent Growth 5.2% -4.2% 2.2% 4.8% 2.4% 4.9% 4.9% 7.6% 7.0% 5.8% 6.1% 5.7% 2015 2016 2017 2018 2019 2020 2021 2022 Source: CBRE, Inc. Source: CBRE, Inc. *Projected units are those currently under construction with an estimated completion date.

RENTAL RATE & VACANCY SUMMARY TABLES Major Project - Salt Lake County BY UNIT TYPE BY YEAR 1990 - 1999 2000 - 2009 BUILT AFTER 2010

CATEGORY RENT SF $/SF VACANCY CATEGORY RENT $/SF VACANCY RENT $/SF VACANCY RENT $/SF VACANCY THE SALT LAKE CITY SKYLINE IS CHANGING

Studio $976 442 $2.21 Studio n/a n/a $871 $2.27 $1,221 $2.23 PROJECT SUMMARY 1 Bed 1 Bath $1,063 673 $1.58 1 Bed 1 Bath $1,105 $1.46 $1,113 $1.50 $1,233 $1.70 2 Bed 1 Bath $1,111 869 $1.28 2 Bed 1 Bath $1,166 $1.23 $1,252 $1.33 $1,266 $1.36 3 Eight or more new high-rise developments are planned to be 2 Bed 2 Bath $1,368 1,034 $1.32 2 Bed 2 Bath $1,371 $1.31 $1,404 $1.32 $1,449 $1.40 2 6 7 8 constructed downtown. It is anticipated 3 Bed 2 Bath $1,533 1,265 $1.21 3 Bed 2 Bath $1,536 $1.20 $1,553 $1.23 $1,587 $1.24 5 the construction of these buildings will Overall $1,218 886 $1.38 4.4% Overall $1,299 $1.30 4.1% $1,312 $1.37 3.6% $1,379 $1.48 4.5% 1 4 draw in new tech companies, mirroring the success northern Utah County has recently seen. Office space, residential, BY SIZE 50 - 99 UNITS 100+ UNITS BY CLASS CLASS A CLASS B CLASS C and a new convention center hotel are all in the planning or under-construction CATEGORY RENT $/SF VACANCY RENT $/SF VACANCY CATEGORY RENT $/SF VACANCY RENT $/SF VACANCY RENT $/SF VACANCY stages. Regarding the impact that these Studio n/a n/a $984 $2.22 Studio $1,209 $2.22 $953 $1.95 $781 $2.35 developments will have on downtown 1 Bed 1 Bath $1,008 $1.43 $1,066 $1.59 1 Bed 1 Bath $1,207 $1.63 $1,024 $1.55 $891 $1.53 Salt Lake City, Executive Director of the Salt Lake Chamber’s Downtown 2 Bed 1 Bath $1,041 $1.14 $1,123 $1.30 2 Bed 1 Bath $1,330 $1.32 $1,147 $1.30 $1,027 $1.24 Alliance Dee Brewer said, “The addition 1 2 3 4 5 6 7 8 2 Bed 2 Bath $1,573 $1.49 $1,362 $1.32 2 Bed 2 Bath $1,483 $1.37 $1,286 $1.29 $1,104 $1.15 of residential is needed for the talent we UNION PACIFIC HOTEL 95 STATE AT CITY CREEK LIBERTY SKY APTS. BLOCK 67 CONVENTION CENTER HOTEL 255 S. STATE STREET THE EXCHANGE 650 MAIN 3 Bed 2 Bath $1,492 $1.18 $1,535 $1.21 3 Bed 2 Bath $1,756 $1.31 $1,469 $1.18 $1,270 $1.07 Including eight 25-story office tower 24 stories, Four mixed-use 28-story hotel tower 190 Units Two multi-story Two 10-story need to recruit and the workforce that 272 units stories and 200 towers up to 27 mixed-use with 412 office towers we need in the growing economy.” Overall $1,154 $1.26 5.7% $1,221 $1.38 4.3% Overall $1,380 $1.47 4.6% $1,195 $1.32 4.0% $972 $1.35 5.3% rooms stories; 650 apartments apartment units Read more here. Source: CBRE, Inc. Source: Salt Lake Tribune.

SALT LAKE COUNTY: MARKET RATE COMPLETED 2015-2019 SALT LAKE COUNTY: MARKET RATE UNDER CONSTRUCTION*

# NAME UNITS # NAME UNITS # NAME UNITS # NAME UNITS 1 700 South Apartments 16 48 The Ridge 261

2 Aire Condominiums 30 49 Via - Ph 1&2 138 1 @ 2100 81 25 Moda Main 11 3 Bridges at Citifront - Phase 2 91 50 Washington Street Row Houses 5 4 Element 31 at Brickyard 208 51 21 by Urbana 126 2 2100 Lofts 206 26 Moda Town Center 24 5 Lofts at 7800 192 52 8th & 8th Apartments 24 6 Lotus Madrona 37 53 965 Central 50 3 40 Park 208 27 Paperbox Lofts Ph 1 195 7 Millcreek Towers 38 54 Affinity 56 Phase 1 192 8 Pinnacle Highbury 290 55 Block 44 214 4 606 West North Temple 22 28 Parc View Apartments and Townhomes 374 9 Seasons at Library Square 119 56 C9 Flats 97 10 Seasons on the Boulevard (Velo) 99 57 Central Ninth Place 13 5 Alto 20 29 Paxton 365 121 11 Solameer at Herriman Towne Center 134 58 District North 148 12 South Ridge 145 59 Hardware Station -West Village 265 6 Affinity 56 Phase 2 222 30 Quattro 95 13 West Station 145 60 Haxton Apartments 39 14 Wilmington Flats 105 61 Herriman Town Center 304 7 Anthology at Vista Station 242 31 River Park Boulevard 40 15 Drycreek at East Village 282 62 Liberty Blvd 266 16 Encore 189 63 Meridian 263 8 Brixton Phase 2 93 32 Rockpoint 251 17 Green Leaf at East Village 336 64 Metro at Fireclay, Phase I 175 9 Broadway Apartments 256 33 Soleil Lofts 360 18 Jordan Station 302 65 Milagro 182 19 Meadows at Park Avenue Ph 1 & 2 135 66 Salt Flats 86 10 Colony Farms 301 34 Station at Gardner Mill 272 20 Millcreek 9 27 67 TenFifteen 54 21 Moda Sego 28 68 The Zeller 292 11 Gladstone Place 187 35 Sugarmont phase 1 170 22 Oquirrh Hills 288 69 Unnamed Townhomes 5 23 Paragon Station Lofts 38 70 Aspira at Anthem 342 12 Hardison Apartments 138 36 Sugarmont phase 2-3 182 24 Prana Townhomes 21 71 Brick Lofts 58 25 Rockledge at Quarry Bend 416 72 Brixton Flats 166 13 Harmony Square 285 37 TAG 945 12 26 Triton Terrace 177 73 Calla Homes 43

27 4th West Apartments 493 74 Diamond Ridge 57 14 Haven Dell at Monarch Village 126 38 TAG Fayette 49 28 Alta Gateway 277 75 Hardware Station- East Village 195 29 Artspace Macaroni Flats 13 76 Icon 9700 264 15 Hawthorne Townhomes 218 39 The Birdie 61 30 Axio 8400 332 77 Maven Townhomes 25 31 Brickyard 24 78 Midvale Station 33 16 Hive Apartments 296 40 The Exchange A 286 32 Downtown 360 Apartments 151 79 Millcreek Flats 14 33 Draper Village 181 80 Moda Spring Run 48 17 Ivory Urban and Vista Station 308 41 The Marq 64 34 Greenprint 60 81 Murray Crossing 293 35 Hills at Sandy Station - Ph 2 146 82 Nexus on 9th 28 18 Ivory Urban at Fairbourne Station 2 201 42 Point of View 324 36 Liberty Crest 177 83 North Metro Town Homes 28 37 Locust Lane 10 84 Odessa at the District 120 19 Jordan Station, Phase 2 237 43 Upper West 206 38 Lotus Tapestry 42 85 Overlook at Rosecrest 196 39 Moda Bonneville 158 86 Paytons Quarry of Herriman 122 20 Liberty Point 50 44 Vida at Daybreak 466 40 Moda Highland Park 40 87 Pierpont by Urbana 87 41 Moda S-Line Townhomes 32 88 Ritz Classic Multifamily 287 21 Liberty Sky 272 45 Wells Mixed-Use Development 12 42 Novi at Jordan Valley Station 267 89 Salt Lake Costumes Site 19 22 Liberty Square 53 46 West Quarter Apartments 241 43 Parc West 249 90 Skyhouse 240 44 Park at City Center 330 91 TAG 365 21 23 Lotus Klass 18 47 West Temple Micro Unit 68 45 Park East 70 92 The Metro at Fireclay Phase II 165 46 Riverfront 288 13,338 Total Units 24 Micro Units 77 7,834 Total Units 47 Rockwell Village at Independence 60 Source: Western States Multifamily. Maps as of February 2020. Source: Western States Multifamily. Maps as of February 2020. *2020 Deliveries YTD are listed as Under Construction.

SALT LAKE COUNTY: MARKET RATE POTENTIAL STARTS UTAH COUNTY

# NAME UNITS OVERALL VACANCY & RENT 1 12th East Apartments 18 8.0% $1,300 2 4- Legged Townhomes 11 VACANCY (%) RENT ($) $1,200 3 600 South Main 170 2018 2019 7.0% $1,100 4 7200 South Apartments 33 VACANCY RATE VACANCY RATE 6.0% $1,000 5 AJ Rock 284 5.0% $900 6 Bella Vea Village 320 4.6% 3.2% $800 7 Block 200 283 4.0% $700 8 Box 500 78 RENTAL RATE RENTAL RATE 3.0% $600 9 Cairns South Village 204 2.0% $500 10 Canyon Centre Heights 113 $1,138 $1,181 1.0% $400 11 Creekside 223 0.0% $300 12 Decker Lake Station Apartments 199 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 13 Draper Apartments 400 14 Edge at the Connection 238 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 15 Emeril Studio Lofts 21 Vacancy (%) 5.7% 7.0% 5.5% 5.0% 3.2% 4.4% 3.6% 4.1% 4.0% 4.1% 4.4% 3.2% 16 Esplanade 101 17 Ice House Apartments 158 Rent ($) $719 $701 $716 $753 $788 $807 $868 $924 $1,041 $1,097 $1,138 $1,181 18 Ivory Urban at South Temple 116 YOY Rent Growth 2.0% -2.5% 2.1% 5.2% 4.6% 2.4% 7.6% 6.5% 12.7% 5.4% 3.7% 3.8% 19 Kensington Tower 380 Source: CBRE, Inc. 20 Liberty Uptown 109 21 Magnolia 65 CURRENT RENTAL & VACANCY RATES UTAH COUNTY TAKEAWAYS 22 Metropolitan 74 23 Moda Luxe 208 BY SIZE 50 - 99 UNITS 100+ UNITS OVERALL 24 Near Transit Stop 69 LOW 3.2% VACANCY CATEGORY RENT $/SF VACANCY RENT $/SF VACANCY RENT $/SF VACANCY 25 Opus Green 69 26 Paperbox Lofts Ph 2 137 Studio N/A N/A N/A N/A $982 $1.70 27 Red Sky 174 2 BED 1 BATH UNITS UP 7% 1 Bed 1 Bath $791 $1.36 $1,030 $1.36 $1,010 $1.36 28 Rockwell Lofts 21 29 Rose Creek Crossing 180 2 Bed 1 Bath $899 $1.25 $1,064 $1.27 $1,033 $1.27 30 Sage Valley Apartments 446 2 Bed 2 Bath $1,213 $1.15 $1,289 $1.23 $1,287 $1.23 849 NEW UNITS EXPECTED IN 2020 31 Salt Lake Crossing 300 32 Seven O2 239 3 Bed 2 Bath $1,014 $1.19 $1,492 $1.13 $1,491 $1.13 33 Soleil Lofts Ph 2 240 Overall $885 $1.28 2.6% $1,193 $1.25 3.3% $1,181 $1.25 3.2% 34 South City 291 Source: CBRE, Inc. 35 South Ridge Phase 2 30 36 TAG 343 45 HISTORICAL RENTAL & VACANCY RATES 37 TAG 950 18 38 TAG 962 18 39 TAG Crossings 120 BY YEAR 2017 2018 2019 40 The Beverly 48 CATEGORY RENT $/SF RENT $/SF RENT $/SF 41 The Citizen 257 42 The East Village Ph 2 304 Studio N/A N/A $914 $1.61 $982 $1.70 43 The Revival 143 1 Bed 1 Bath $996 $1.34 $966 $1.32 $1,010 $1.36 44 The Slate 150 45 The Sloane 88 2 Bed 1 Bath $962 $1.17 $960 $1.14 $1,033 $1.27 46 The Yardi on Highland 328 2 Bed 2 Bath $1,154 $1.09 $1,247 $1.18 $1,287 $1.23 47 Union Woods 209 3 Bed 2 Bath $1,476 $1.12 $1,491 $1.12 $1,491 $1.13 7,730 Total Units Overall $1,097 $1.16 $1,138 $1.22 $1,181 $1.25

Source: Western States Multifamily. Maps as of February 2020. Source: CBRE, Inc.

UTAH COUNTY: MARKET RATE COMPLETED 2015-2019/PIPELINE* UTAH COUNTY UNITS DELIVERED/PROJECTED 2015-2022* PROJECTED 2,500 1,958 1,719 2,000 1,506 UNITS DELIVERED 1,500 2015 to 2019 1,063 849 966 6,897 1,000 651 534 500 PROJECTED DELIVERIES 2020 to 2022 0 2,349 2015 2016 2017 2018 2019 2020 2021 2022 Source: CBRE, Inc. *Projected units are those currently under construction with an estimated completion date.

# NAME UNITS STATUS # NAME UNITS STATUS # NAME UNITS STATUS 1 63 Center 41 Completed 26 Art City 41 Completed 51 Millpond 214 Under Construction 2 Alloy at Geneva 324 Completed 27 Easton Park 312 Completed 52 Palladium 36 Under Construction 3 Canyon View Crossing 180 Completed 28 Fields at Timpanogos 192 Completed 53 Parkview Towns 120 Under Construction 4 Carson Corner 11 Completed 29 Rivulet 252 Completed 54 Rees Apartments 32 Under Construction 5 Cherry Hill 74 Completed 30 The Aston at University Place Ph. 1 & 2 478 Completed 55 The Exton 70 Under Construction 6 Grassland Condos 24 Completed 31 Traverse Towns 92 Completed 56 The Fields at Orem 43 Under Construction 7 ICO Mayfield 214 Completed 32 Eversage 168 Completed 57 10 Units in Orem 10 Potential Start 8 Lakeview Condos 44 Completed 33 Lesa Shirley 10 Completed 58 American Fork Apartments 300 Potential Start 9 Steeple Chase 26 Completed 34 Meadows at American Fork Phase 270 Completed 59 Apple Grove 60 Potential Start 10 The Boulevard 110 Completed 35 Midtown360 Phase II 104 Completed 60 Blue Sky 131 Potential Start 11 The Old Chapel 15 Completed 36 Parc on 5th 252 Completed 61 Dublin Farms 128 Potential Start 12 Bella Grace 24 Completed 37 Porter Ranch Townhomes 128 Completed 62 East Bay 331 Potential Start 13 Concord at Geneva 304 Completed 38 The Devon 129 Completed 63 Fossil Cove 66 Potential Start 14 Edgewater 213 Completed 39 Village at Porters Crossing 94 Completed 64 Ivory Living at Mayfield North 30 Potential Start 15 ICO Monteval 131 Completed 40 Village on 4th 96 Completed 65 Lexington Green 252 Potential Start 16 Midtown 360 286 Completed 41 Vine 468 Completed 66 Midtown360 Phase III 144 Potential Start 17 Outlook 260 Completed 42 400 Element 108 Under Construction 67 Orem Art Space 213 Potential Start 18 Parc on Center 168 Completed 43 860 Place 178 Under Construction 68 Patriot Station 125 Potential Start 19 Seasons of Traverse Mountain Phase 1 & 2 440 Completed 44 Arbors on the Avenue 68 Under Construction 69 Pineridge Farms 100 Potential Start 20 Tucker Row at Waters Edge 132 Completed 45 Eagle Heights Village 310 Under Construction 70 Ridgeview Townhomes 96 Potential Start 21 Lochs at Waters Edge 220 Completed 46 Flats at Riverwoods 218 Under Construction 71 Spanish Fork Apartments Phase I 192 Potential Start 22 Parkway Lofts 332 Completed 47 High Line Square 67 Under Construction 72 Spring Haven 160 Potential Start 23 Sun Canyon Villas 83 Completed 48 Lehi Tech Center 330 Under Construction 73 The Apartments on the Boulevard 200 Potential Start 24 The Meadows 16 Completed 49 Mill Point 413 Under Construction 74 The Mix at River's Edge 293 Potential Start 25 200 City View 139 Completed 50 Meadows 142 Under Construction 75 The Vue at Traverse Mountain Phase I-II 308 Potential Start

COMPLETED UNDER CONSTRUCTION POTENTIAL START C 6,897 Units UC 2,349 Units P 3,139 Units

Source: Western States Multifamily. Maps as of February 2020. *2020 Deliveries YTD are listed as Under Construction.

DAVIS COUNTY

OVERALL VACANCY & RENT DAVIS COUNTY UNITS DELIVERED/PROJECTED 2015-2022* 10.0% $1,200 VACANCY (%) RENT ($) PROJECTED 9.0% $1,100 2018 2019 600 567 VACANCY RATE VACANCY RATE 8.0% $1,000 7.0% $900 503 509 500 3.8% 3.0% 6.0% $800 5.0% 427 $700 404 4.0% $600 400 UNITS DELIVERED RENTAL RATE RENTAL RATE 3.0% $500 2015 to 2019 $1,060 $1,102 2.0% 1.0% $400 300 1,595 0.0% $300 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 200 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 121 PROJECTED DELIVERIES Vacancy (%) 5.9% 8.0% 5.1% 5.8% 6.6% 4.6% 4.6% 4.0% 3.4% 3.5% 3.0% 3.0% 100 2020 to 2022 Rent ($) $715 $701 $711 $701 $720 $756 $796 $839 $933 $1,005 $1,060 $1,102 0 0 0 YoY Rent Growth 6.7% -2.0% 1.4% -1.4% 2.7% 5.0% 5.3% 5.4% 11.2% 7.7% 5.5% 3.9% 936 2015 2016 2017 2018 2019 2020 2021 2022 Source: CBRE, Inc. Source: CBRE, Inc. *Projected units are those currently under construction with an estimated completion date. CURRENT RENTAL & VACANCY RATES DAVIS COUNTY TAKEAWAYS Major Project - Davis County BY SIZE 50 - 99 UNITS 100+ UNITS OVERALL VACANCY DROPS 80 BPS TO 3.0% CATEGORY RENT $/SF VACANCY RENT $/SF VACANCY RENT $/SF VACANCY NEW ROAD CONSTRUCTION INCREASING DAVIS COUNTY ACCESSIBILITY Studio $525 $1.46 $683 $2.00 $655 $1.90 RENT GROWTH SLOWED 1.6% 1 Bed 1 Bath $870 $1.26 $992 $1.51 $985 $1.49 2 Bed 1 Bath $1,015 $1.08 $1,114 $1.23 $1,098 $1.21 PROJECT SUMMARY 507 UNITS TO DELIVER IN 2020 2 Bed 2 Bath $1,162 $1.13 $1,278 $1.26 $1,257 $1.24 It has become a top priority for the state to enable Davis County to 3 Bed 2 Bath $1,334 $1.05 $1,472 $1.21 $1,452 $1.19 become more accessible. The county has had a 16% population increase this past decade, and is experiencing growing pains. Overall $1,028 $1.13 2.7% $1,111 $1.33 3.0% $1,102 $1.30 3.0% Source: CBRE, Inc. The Utah Department of Transportation has earmarked $451 million dollars for improvement projects which include funds to convert HISTORICAL RENTAL RATES U.S. 89 in Davis County into a full freeway. The UDOT Commission added $200 million to their previous $275 million estimated cost BY YEAR 2017 2018 2019 in the conversion to the freeway. The budget was also increased CATEGORY RENT $/SF RENT $/SF RENT $/SF $190.75 million for the West Davis Highway to increase the number of lanes by two in each direction. Read more here. Studio $586 $1.43 $665 $1.93 $655 $1.90 1 Bed 1 Bath $906 $1.29 $959 $1.48 $985 $1.49 PROJECT COST 2 Bed 1 Bath $987 $1.10 $1,055 $1.16 $1,098 $1.21 2 Bed 2 Bath $1,071 $1.06 $1,157 $1.19 $1,257 $1.24 $1.275 Billion 3 Bed 2 Bath $1,221 $0.97 $1,382 $1.12 $1,452 $1.19 PROJECT DETAIL Overall $1,005 $1.11 $1,060 $1.25 $1,102 $1.30 Freeway Accessibility Improvements Source: CBRE, Inc. Source: Salt Lake Tribune.

DAVIS COUNTY: MARKET RATE COMPLETED 2015-2019/PIPELINE* WEBER COUNTY

# NAME UNITS STATUS OVERALL VACANCY & RENT 1 100 South Apartments 18 Completed 10.0% $1,100 2 Eaglewood Lofts 410 Completed VACANCY (%) RENT ($) 9.0% 3 Sessions Settlement 19 Completed 2018 2019 $1,000 8.0% 4 Village at Church & Main 56 Completed VACANCY RATE VACANCY RATE $900 7.0% 5 Avanti at Farmington Station 142 Completed 2.7% 3.0% 6.0% $800 6 Farmington Crossing 93 Completed 5.0% $700 7 Greyhawk Townhomes 114 Completed 4.0% 8 Parkview Townhomes 24 Completed RENTAL RATE RENTAL RATE $600 3.0% 9 The Park at Legacy Trails 162 Completed $500 2.0% 10 University Ridge 32 Completed $937 $995 1.0% $400 11 Boardwalk Townhomes 15 Completed 0.0% $300 12 City Centre 123 Completed 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 13 City's Edge North, PH 2 6 Completed 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 14 Clearfield Station 216 Completed 15 Odell Crossing 44 Completed Vacancy (%) 7.2% 9.0% 6.8% 6.5% 6.1% 6.9% 4.7% 4.2% 2.3% 3.2% 2.5% 3.0% 16 Aero Townhouses 49 Completed Rent ($) $651 $639 $640 $655 $684 $678 $698 $754 $810 $864 $937 $995 17 Carringtion Place - Phase 2 60 Completed 18 Jaybird Apartments 12 Completed YOY Rent Growth 4.5% -1.8% 0.2% 2.3% 4.4% -0.9% 2.9% 8.0% 7.4% 6.6% 8.5% 6.2% 19 700 West Layton 132 Under Construction Source: CBRE, Inc. 20 1 & 1 12 Under Construction 21 City's Edge Central 21 Under Construction CURRENT RENTAL & VACANCY RATES WEBER COUNTY TAKEAWAYS 22 Clearfield Junction 112 Under Construction 23 Coventry Townhomes 55 Under Construction BY SIZE 50 - 99 UNITS 100+ UNITS OVERALL 24 Layton 193 187 Under Construction HIGHEST RENT GROWTH AMONG ALL COUNTIES: 6.2% 25 ICO Station Parkway - Phase 1 267 Under Construction CATEGORY RENT $/SF VACANCY RENT $/SF VACANCY RENT $/SF VACANCY 26 Renaissance Place 40 Under Construction Studio $714 $1.28 $641 $1.67 $646 $1.64 27 The Point 108 Under Construction LARGEST EVER UNIT DELIVERIES EXPECTED IN 2020: 696 28 150 North Main Street 8 Potential Start 1 Bed 1 Bath $750 $1.08 $964 $1.36 $904 $1.28 29 1950 South 575 West 116 Potential Start 2 Bed 1 Bath $883 $0.99 $978 $1.16 $945 $1.10 30 350 North Main Street 12 Potential Start 8.5% RENT GROWTH FOR STUDIO UNITS 31 750 Depot Street 12 Potential Start 2 Bed 2 Bath $1,042 $1.01 $1,234 $1.17 $1,210 $1.15 32 Bravada 193 328 Potential Start 3 Bed 2 Bath $1,311 $0.92 $1,302 $1.02 $1,305 $0.99 33 City Plaza 106 Potential Start Overall $918 $0.99 2.7% $1,025 $1.19 3.1% $995 $1.12 3.0% 34 City's Edge Ph II 15 Potential Start 35 Clearfield Junctions PhII 132 Potential Start Source: CBRE, Inc. 36 Double Take 14 Potential Start 37 Layton Hills 190 Potential Start HISTORICAL RENTAL RATES 38 Renaissance South Apartments 217 Potential Start 39 Syracuse Apartments 240 Potential Start BY YEAR 2017 2018 2019 40 The Kurtz 11 Potential Start CATEGORY RENT $/SF RENT $/SF RENT $/SF 41 The Winnie 20 Potential Start 42 Williamsburg Luxury Apartments 214 Potential Start Studio $510 $1.28 $591 $1.49 $646 $1.64 43 Wright 300 Apt 300 Potential Start 1 Bed 1 Bath $756 $1.00 $850 $1.16 $904 $1.28 44 Wright Syracuse Apartments 116 Potential Start 45 Wright Syracuse Townhomes 28 Potential Start 2 Bed 1 Bath $820 $0.89 $854 $0.95 $945 $1.10 COMPLETED UNDER CONSTRUCTION 2 Bed 2 Bath $992 $0.92 $1,129 $1.05 $1,210 $1.15 C 1,595 Units UC 936 Units 3 Bed 2 Bath $1,175 $0.86 $1,237 $0.92 $1,305 $0.99 POTENTIAL START P 2,079 Units Overall $864 $0.90 $937 $1.01 $995 $1.12 Source: Western States Multifamily. Maps as of February 2020. *2020 Deliveries YTD are listed as Under Construction. Source: CBRE, Inc.

WEBER COUNTY UNITS DELIVERED/PROJECTED 2015-2022* WEBER COUNTY: MARKET RATE COMPLETED 2015-2019/PIPELINE*

PROJECTED # NAME UNITS STATUS 800 1 Mountain View Townhomes - Phase 1 58 Completed 696 2 The Cove at Pleasant View 88 Completed 700 3 The View on 20th 148 Completed 4 Claradon Village Phase I-II 300 Completed 600 5 Mountain View Townhomes - Phase 2 47 Completed 488 UNITS DELIVERED 6 Parkview at Hooper 12 Completed 500 7 Aderra 114 Completed 382 2015 to 2019 8 City Garden 61 Completed 359 359 400 337 2,097 9 Mountain View Townhomes - Phase 3 40 Completed 294 10 Tower View Apartments 144 Completed 300 11 Colonial Court- Phase 2 73 Completed 12 Oak Ridge - Phase 2 12 Completed 200 13 One West 216 Completed PROJECTED DELIVERIES 14 The Blackberry 22 Completed 100 2020 to 2022 15 The Ranches - Phase 1 41 Completed 0 16 View at the Junction 40 Completed 0 1,184 17 Roy Regency Apartments 12 Completed 2015 2016 2017 2018 2019 2020 2021 2022 18 Seasons at Skyline - Phase 1 208 Completed 19 The Ranches 117 Completed Source: CBRE, Inc. *Projected units are those currently under construction with an estimated completion date. 20 Bria Apartments 268 Under Construction 21 Chloe's Pointe 114 Under Construction 22 Deisel @ Kiesel 22 Under Construction Major Project - Weber County 23 Haven Cove Townhomes - Phase 1 & 2 158 Under Construction 24 Hidden Ridge 34 Under Construction 25 Lewis Peak Apartments 86 Under Construction OGDEN CITY APPROVES $1.8 MILLION TAX INCENTIVE TO DEVELOPER 26 Moda Vista 79 Under Construction 27 Orchards on 19th 75 Under Construction 28 Parkside 7 32 Under Construction 29 Seasons on Skyline Phase 2 50 Under Construction PROJECT SUMMARY 30 Sunrise Point Townhomes 17 Under Construction 31 Village at Prominence Point 249 Under Construction Local developer, Garn Development, has been approved to receive $1.8 32 11 West Apartments 303 Potential Start million in tax incentives. The redevelopment project will include a new hotel 33 12th Street Apartments 222 Potential Start in downtown Ogden. Garn will construct a TRU/Home2 Suites hotel at the 34 644 28th Street 6 Potential Start southwest corner of Lincoln Avenue and 24th Street. This development, 35 Coopers Towne 156 Potential Start a 150-room hotel, will provide much-needed rooms in the downtown 36 Greenhill at Riverdale, Phase 2 30 Potential Start Ogden area. In the approval, the redevelopment agency board stipulated 37 Knudson Corner 104 Potential Start 38 Lotus Foxridge 27 Potential Start a completion date of June 30, 2021 which will provide the developer 39 Riverdale Road Apartments 180 Potential Start approximately a year-and-a-half to complete the project. The site is within the 40 Terezza Apartments 256 Potential Start Kiesel Community Development Area, which encompasses approximately 41 The Ranches Phases 3, 4 & 5 197 Potential Start 39 acres and was approved by the RDA board in 2015. Read more here. 42 The View on 20th - Phase 2 145 Potential Start 43 Village at Prominence Point 249 Potential Start INCENTIVE 44 Wall Avenue & 17th Street 279 Potential Start 45 Woods Rose 49 Potential Start $1.8M in Tax Rebates 46 West Garden Townhomes 56 Potential Start C COMPLETED UC UNDER CONSTRUCTION PROJECT DETAIL 1,753 Units 1,184 Units POTENTIAL START Redevelopment Project P 2,259 Units Source: Standard.net, October 2, 2019. Rendering Credit: Ogden City. Source: Western States Multifamily. Maps as of February 2020. *2020 Deliveries YTD are listed as Under Construction.

MARKET ECONOMIC SUMMARY THE CBRE DIFFERENCE Now in the longest expansionary period on record, the national LARGEST EMPLOYMENT SECTORS IN THE GREATER SALT LAKE AREA economy has begun to show initial signs of easing. While national job growth remains in line with expectations, this positive growth has 2.6% 0.6% 2.6% been overshadowed by trade tensions, political uncertainty and market TRADE, TRANS, UTILITIES fluctuations. Also making headlines is the Federal Reserve’s January GOVERNMENT HIGHEST GROSS SALES, LARGEST LOCAL & COMMANDING PROVEN MARKETING GREATEST MARKET MOST COMPREHENSIVE 5.7% 10 YEARS RUNNING NATIONAL MARKET SHARE MARKET LEAD PROCESS EXPOSURE LOCAL MARKET RESEARCH decision to hold the federal funds rate steady at 1.5-1.75%, indicating PROFESSIONAL & 18.9% the Fed’s “wait-and-see” approach to the economy in the new year. 7.0% BUSINESS SERVICES EDUCATION & HEALTH This comes after three rate cuts were made in 2019 in response to a 2016 - 2019 U.S. MULTIFAMILY INVESTMENT SALES VOLUME (BILLIONS) HOSPITALITY & LEISURE slowed global economy and lower-than-target inflation rates. 8.6% TOTAL SALES VOLUME (BILLIONS) MANUFACTURING 16.1% $35.0 Amid the national uncertainty, Utah’s strong fundamentals—including CONSTRUCTION 10.0% $30.0 high job and population growth—are expected to outperform national FINANCIAL ACTIVITIES $33.0 averages. However, rent pressure from growing demand and limited $25.0 $32.4 INFORMATION

13.8% 14.0% $28.9 wage growth has caused concerns over housing affordability. Overall, $20.0 OTHER SERVICES $26.6 the local economy is expected to retain momentum from the previous MINING $15.0 year and weather any late-cycle corrections. $10.0 Source: Department of Workforce Services- Utah’s Employment summary, January 2020. $5.0 ECONOMIC DRIVERS OF DEMAND UTAH’S RECENT EMPLOYMENT GROWTH $0.0 2019 2019 2019 2019 2019 2019 2019 2016 2017 2018 2016 2017 2018 2016 2017 2018 2016 2017 2018 2016 2017 2018 2016 2017 2018 2016 2017 2018 CBRE JLL NEWMARK GRUBB MARCUS & MILLICHAP CUSHMAN & WAKEFIELD BERKADIA EASTDIL SECURED 3.3% 1.7% $71,414 51,454 1.59M 5% KNIGHT FRANK UTAH JOB GROWTH* UTAH POPULATION MEDIAN HOUSEHOLD NEW JOBS ADDED IN 2019* 2019 TOTAL JOBS** JOB GROWTH IN LIFE Source: RCA Data Integration, February 2020. *Volume includes all properties that are 10 units and up or valued at over $1 million. GROWTH** INCOME (UP 4.47%)*** LEADING STATE IN JOB CREATION SCIENCE INDUSTRY (#1 IN NATION)***

*Department of Workforce Services- Utah’s Employment summary, January 2020. *Bureau of Labor Statistics. **Estimated, U.S. Census Bureau. **Department of Workforce Services, Dec. 2019. ***Data USA: Utah. ***Utah Department of Workforce Services. MULTIFAMILY DEBT MARKET UPDATE ESTIMATED MULTIFAMILY FINANCE VOLUME (BILLIONS) ECONOMIC DIVERSITY 2019 set another record year for multifamily finance volume, which $450 $395 According to the Hachman Index WA MT reached $364 billion, and 2020 is projected to go even higher, with ND $400 $364 85.1 83.2 49.0 of economic diversity, Utah led MN ME an estimated total volume of $395 billion. All-in long-term fixed interest 94.0 the nation in economic diversity in SD WI 91.0 rates are currently in the low-to mid-3%’s, with select transactions OR ID $350 60.7 91.5 MI $313 2018 with a score of 97.1 based 93.4 82.3 WY NY VT 89.4 closing at sub-3% interest rates for best-in-class deals at low leverage. $285 IA 91.2 79.1 $269 32.0 NE NH 94.5 $300 on GDP by industry. The closer the 75.8 PA Lending appetite for multifamily remains robust among all lender types. 73.0 IL IN OH MA 89.4 NV 95.7 RI 89.1 score is to 100, the more the state is UT CO 95.5 76.5 93.6 $250 67.5 KS MO WV CT 91.0 97.1 93.2 KY economically diversified. Utah’s well- CA 92.4 96.8 64.1 VA NJ 93.8 • All-in rates in the 2.90% to 3.50% range for 10-year fixed-rate 89.6 92.8 89.1 DE 56.0 $200 diversified job market spans all major OK TN NC loans, interest rate floors are typically dictating minimum rates. AR 92.1 MD 88.3 sectors including the tech, financial, AZ NM 47.7 93.5 96.0 88.1 SC DC 48.9 $150 60.1 MS AL GA • Low cost of debt creating further downward pressure on cap rates, healthcare, education, government, 91.0 TX LA 86.3 90.6 95.9 highly competitive lending environment. mining and construction sectors to 73.6 83.9 $100 • Freddie Mac and Fannie Mae continue to dominate market share; provide one of the highest job growth AK < 75.0 (Least Diverse) 33.8 FL 75.0 -84.9 all lender types aggressively pursuing multifamily assets. $50 markets in the country. 92.0 HI 85.0 -89.9 72.2 • Flat yield curve driving borrowers toward longer-term fixed rates, $0 90.0 -94.9 with increased focus on prepay flexibility. 2016 2017 2018 2019 2020 PROJECTION* 95.0+ (Most Diverse) Source: CBRE Research, Mortgage Bankers Association (compilation *Freddie Mac’s Current Forecast. Source: Utah Economic Council’s 2020 Economic Report to the Governor Highlights. from many sources and originations survey, forecasts), February 2020.

CAPITAL MARKETS DEBT & STRUCTURED FINANCE ELI MILLS PATRICK BODNAR DOUG BIRRELL Senior Vice President Vice President First Vice President Institutional Properties Institutional Properties Debt & Structured Finance +1 801 869 8029 +1 801 869 8053 +1 801 869 8041 [email protected] [email protected] [email protected]

CBRE MULTIFAMILY

TOP FIRM SINCE 2001 $33.3B+ 300+ PROFESSIONALS #1 FREDDIE MAC $30.4B U.S. MULTIFAMILY MULTIFAMILY SALES U.S. MULTIFAMILY SELLER/SERVICER MULTIFAMILY (PER RCA) TRANSACTIONS IN 2019 2018 FINANCING 2019

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