Us Capital Trends | the Big Picture

Q2'17

US CAPITAL TRENDS | THE BIG PICTURE

A disconnect between pricing and deal volume colors Q2’17 transaction $109.2b volume much of the activity in 2017 so far. Sales volume fell again Q2’17 YOY for both the quarter and year to date even as prices climbed. -5% volume change This relationship does not necessarily signal a pending collapse in pricing.

Volume is falling today as buyers and sellers face Quarterly Transaction Volume different expectations on pricing. It was easy for price Individual Portfolio Entity expectations to align when cap rates were falling and $b the Federal Reserve was being accommodative. Buyers 180 exhibit more caution today given the current uncertainty 160 on the rate environment. 140

120 Current owners though are not as motivated to sell as investors were in the last cycle. Into 2008 and 2009 100 as loans came due and few lenders were active, many 80 investors had no option but to sell. The lending markets 60 are vastly more stable today. 40 There are certain property subtypes where investors 20 do seem to be motivated to sell today, however. This 0 relationship between price and deal volume is explored in more detail on page 4 of this report. Year-Over-Year Change We are approaching a decade since the transaction 75% which took the Equity Office REIT private – the highwater

50% mark of deal activity in 2007. It’s worth looking at the subsequent downward spiral to give some perspective 25% on the fear that the current slide in activity presages a 0% collapse in pricing just like that seen in the last downturn. -25% '12 '13 '14 '15 '16 '17 Volume peaked in this cycle six quarters ago in Q4’15. Looking at volume on a 4-quarter trailing basis to control Cap Rates for seasonal variations, volume is now 13% lower than H1'17 Q2'17 that peak. Six quarters after the peak in Q4’07, deal Vol ($b) YOY Vol ($b) YOY volume had already fallen 83%. So the current deal 33.6 -2% 64.6 -2% Office slowdown is nothing like the previous cycle and one Retail 13.7 -28% 32.4 -16% should not fret that prices will follow the same path. Industrial 15.3 10% 30.1 10% Hotel 7.3 -1% 13.5 0% Apartment 35.2 -1% 62.6 -17% Dev Site 4.1 -13% 7.9 -20% Total 109.2 -5% 211.1 -8% Major Metros 39.8 -24% 82.1 -20% In This Issue: We chart differing price and Secondary Mkts 51.4 10% 95.6 -3% deal trends among the sectors and analyze the Tertiary Mkts 14.7 -2% 29.5 0% development site market. The top players, deals and Portfolio 23.3 15% 46.6 -16% markets at midyear are ranked. Single Asset 85.9 -9% 164.6 -6%

12-mth trailing cap rates US CAPITAL TRENDS | BIG PICTURE

Recent Trends | Q2’17

Deal structures are generating noise around recent trends in sale activity. It is a mistake to assume that the current Cap Rates pace of activity will continue into following quarters. Off Ret Ind Apt Htl Industrial deal volume grew 10% YOY in Q2’17. A 9.0% significant part of that story is the Equinix REIT transaction

involving 29 highly-valued Verizon data centers. Another 8.0% such deal is in the pipeline for H2’17 but unless more megadeals come along, deal volume may trend more like the single-digit pace set by the single asset industrial sale 7.0% market in Q2’17.

Suburban office activity grew for both the year to date and 6.0% Q2’17 compared with a year earlier. The Q2’17 YOY gain

of 22% was the sharpest for any property sector. One 5.0% megadeal was important here as well – the Duke Realty sale of medical office buildings to HTA. Single asset sales were down 7% YOY for the office sector overall. Property Prices

Across all sectors there are fewer of these megadeals 20% today than in the past. Megadeals only represent 21% of total deal volume versus the 32% share back in 2015. 15% When such a deal is completed, the volume for the property sectors involved can suddenly paint a picture of 10% a growing market and perhaps make one think that the pricing slowdown underway might reverse. 5%

Pricing trends are slowing and not likely to change back 0% to the double-digit pace set in 2016 for some sectors. Cap rates are at record-low levels and unlikely to -5% compress further with the Federal Reserve becoming less '12 '13 '14 '15 '16 '17

accommodative. Additionally, income trends are unlikely YOY change in RCA CPPI, Q2’17 prelim to climb at double-digit rates with the current modest pace of economic growth.

The property sector with the most challenging trend on pricing is the retail sector. The RCA CPPITM was unchanged from a year earlier in Q2’17, according to preliminary figures, but had fallen at a 3% YOY pace in Q1’17. The office and apartment sectors each posted something of a rebound in prices in Q2’17, quickening to 10% YOY gains from single-digit gains in Q1’17.

Development sites are the property sector with the sharpest pullback in deal volume for the year to date, with sales down 20% from H1’16. As price growth has been cooling from a double-digit pace, an investor’s motivation to build rather than buy will cool as well. As explored on page 5 of this report, there are other financing and cost issues to consider.

Recent Trends | Sector Momentum

The disconnect between prices does not present a uniform On the opposite end of the scale, the suburban office pattern across property sectors. There are unique stories of market has posted both strong growth in deal volume changes in buyer and seller preferences across every sector as well as steady price growth. The combination might in H1’17. suggest that investors are rediscovering the opportunities in this sector but portfolio activity is somewhat clouding The normal view is that deal volume and prices move this view. There are higher yield opportunities in this sector, together, but this relationship has not held for the last two however, and cyclic recoveries are underway in large metro years. If prices and deal volume moved together, one would areas with a heavy weighting to suburban office space. see all of the bubbles in the chart below lining up either in the top right quadrant or in the bottom left. The garden apartment, CBD office and hotel sectors are in the phase where prices grow as volumes fall. This pattern The retail sector is stuck between price growth and price suggests an impasse where buyers are pulling back from declines. The H1’17 volume declines were at the same pace their interest in the sectors at current prices while owners as those in H1’16, and the combination with falling prices are not adjusting their price expectations. today suggests that buyers are pulling back on pricing expectations while current owners hold price expectations that are too high. Mid/highrise apartment assets are facing a similar challenge.

Sector Momentum

20%

6MM CBD Office 15%

NMM Hotel

NMM Apartment 10% 6MM Apartment

NMM Suburban Office 6MM Suburban Office 6MM Industrial Label 6MM Hotel 6MM Apartment 5% NMM Industrial 6MM CBD Office NMM CBD Office 6MM Hotel 6MM Retail 6MM Industrial 0% 6MM Retail RCA CPPI Change H1‘17 vs H1’16 (Q2’17 prelim) (Q2’17 RCA vs H1’16 CPPI Change H1‘17 NMM Retail 6MM Suburban Office NMM Apartment

-5% NMM CBD Office -40% -30% -20% -10% 0% 10% 20% 30% 40% Volume Change H1‘17 vs H1’16

Top Markets

Los Angeles is now the largest commercial real estate impact of oil price declines on Texas. Suburban office investment market and Manhattan has slipped to the #2 sales were the biggest driver of growth in Houston. position. Capital has migrated away from higher-priced locations helping several markets claw their way up our Charlotte moved up the most in the rankings from position ranking of the top markets. #29 in 2016 to #16 for H1’17. The office, industrial and hotel sectors boosted growth in Charlotte. Dallas recorded the strongest level of deal volume ever seen in the first half of a year for this market. The only Deal volume in Manhattan was only $1.5b higher than that sectors which did not contribute to this growth were for Dallas in H1’17. The other way to look at the current development sites, retail and CBD offices. The CBD office position of Manhattan is that deal volume here was only sector stands out in Dallas with no sales recorded in $1.9b behind Los Angeles. The sale of one or two office H1’17. This performance by Dallas is spectacular given that buildings in Manhattan could easily make up this ground the market was, so to speak, fighting with one sector tied in the second half. Pending sales in Manhattan total behind its back. $4.2b, including the One Astor Plaza transaction which is rumored to be priced well into the billions. A deal like this Houston has also come alive again on fading fears of the one could help Manhattan reclaim the top spot.

Most Active Markets H1’17

2012 2016 H1'17 Market Sales Volume ($m) YOY 2 2 1 Los Angeles 12,604 -11% 1 1 2 Manhattan 10,619 -55% 5 3 3 Dallas 9,197 21% 10 8 4 Boston 8,250 0% 9 5 5 Atlanta 7,129 18% 3 4 6 Chicago 5,993 -32% 7 12 7 Houston 5,595 33% 4 6 8 Seattle 5,223 -20% 6 7 9 San Francisco 5,204 -3% 21 15 10 No NJ 4,575 1% 11 10 11 Phoenix 4,555 -13% 15 9 12 Denver 4,276 -36% 8 13 13 San Jose 4,223 18% 12 11 14 NYC Boroughs 4,215 -27% 18 14 15 Austin 4,111 3% 24 29 16 Charlotte 3,762 44% 13 21 17 DC VA burbs 3,657 0% 16 18 18 Orange Co 3,626 26% 30 28 19 Orlando 3,510 32% 19 17 20 Miami/Dade Co 3,113 -24% 14 30 21 DC 3,036 30% 22 25 22 Inland Empire 2,940 8% 17 16 23 San Diego 2,856 -38% 20 35 24 Baltimore 2,853 69% 23 20 25 East Bay 2,657 -26%

Markets in orange denote record high H1 volume in H1’17

Analysis | Development Sites

A developer needs to secure dirt before bringing a project to market and prices grew into 2015 as developers Market H1'17 Sales Volume ($m) YOY Chg competed for the best sites. Changes in both financing East Bay 481 127% options and the motivators for construction are starting to Los Angeles 387 -13% cool the dev site market, however. Miami/Dade Co 362 20% Investors fear the impact of ongoing construction in a Seattle 300 5% select number of submarkets and property types where No NJ 286 133% construction has risen sharply in this cycle. The pullback Boston 274 26% in land sales may initially relieve those fears but reduced Phoenix 264 87% land prices might also lead to a troubling change in Dallas 251 -62% construction costs. Charlotte 244 189% As noted in previous editions of US Capital Trends, bank Manhattan 243 -82% underwriting on construction loans began to tighten in 235 2015 which in turn has curtailed the sale of development Quarterly Volume and Pricing sites. Volume in Q2’17 is now 31% lower than that seen Vol, $b $/sf Vol, $b $/sf Vol, $b $/sf in Q2’15. 8 8 18 18 8 16 While deal volume is falling generally, some markets7 stand 7 16 16 7 14 out with more activity and stronger growth. The East Bay 14 14 6 6 6 12 of San Francisco, for instance, was the most liquid market 12 12 5 5 for development site sales in H1’17 with transactions 5 10 10 10 totaling $481m. This activity is up 127% from H1’16.4 4 4 8 8 8 3 3 Prices have fallen in turn and are now 56% lower than the 3 6 6 6 2015 peaks nationally. This price reduction might generate 2 2 4 concern on future supply as land represents roughly one 2 4 4 1 1 2 2 third of the cost of a new project. This said, financing 1 2 costs have increased with the HVCRE regulation,0 as have 0 0 0 Q1'12 Q1'130 Q1'14 Q1'12Q1'15 Q1'13Q1'16 Q1'14Q1'17 Q1'15 Q1'16 0 Q1'17 hard costs, so in total the impact may be a wash. Q1'12 Q1'13 Q1'14 Q1'15 Q1'16 Q1'17

Development Site Pricing in Selected Markets

$/sf Manhattan $/sf East Bay Los Angeles 6,000 120

5,000 100

4,000 80

3,000 60

2,000 40

1,000 20

0 0 '13 '14 '15 '16 '17 '13 '14 '15 '16 '17

Market Table | All Property Types Figures in bold orange denote that record H1 highs were set in H1’17. A record high notation for $/sf (or $/unit) indicates that an all-time record high was achieved; the number shown is the average.

Transactions Reported Closed - All Property Types Office Industrial Retail Apartment Hotel Dev Site Total

H1’17 Vol ($m) $/sf Vol ($m) $/sf Vol ($m) $/sf Vol ($m) $/unit Vol ($m) $/unit Vol ($m) $/sf Vol ($m) YOY Chg Baltimore 764.9 176 339.1 58 160.5 156 1,301.6 140,393 286.9 156,254 38.6 12 2,891.7 69% Mid-Atlantic DC 2,379.7 598 65.5 271 204.6 436 152.4 109,933 233.4 343,567 72.3 110 3,107.9 27% DC MD burbs 310.0 138 114.8 78 535.1 302 666.5 149,992 35.0 38.7 44 1,700.0 -37% DC VA burbs 1,921.1 311 261.6 91 306.3 197 835.8 242,159 331.8 252,135 162.6 14 3,819.2 1% Philadelphia 1,036.3 113 247.9 52 527.0 262 563.2 147,886 226.0 160,538 90.3 12 2,690.7 -7% Pittsburgh 227.7 132 60.4 78 105.1 57 256.3 67,402 44.3 90,387 22.5 3 716.4 9% Richmond/Norfolk 342.4 103 80.3 54 239.0 101 309.0 101,297 144.9 75,200 20.2 2 1,135.7 -8% Tertiary Mid-Atlantic 362.6 163 760.1 56 424.1 93 475.2 134,404 202.5 47,301 97.7 5 2,322.2 -24% Total 7,344.7 231 1,929.6 62 2,501.7 159 4,560.0 142,092 1,504.8 136,907 543.0 9 18,383.8 -1% Chicago 1,078.2 176 1,405.5 68 1,536.1 228 1,664.7 176,524 308.2 93,159 201.7 5 6,194.4 -32% Midwest Cincinnati 232.9 163 216.1 46 286.6 182 184.5 59,229 81.2 99,424 11.5 10 1,012.8 44% Cleveland 328.2 122 89.3 96 59.4 107 35.5 135.5 21.7 3 669.7 65% Columbus 268.9 117 348.7 44 113.6 97 236.3 62,403 69.7 68,502 4.9 1,042.2 37% Detroit 425.3 95 347.3 67 359.8 107 214.2 93,835 23.6 23.5 1,393.6 35% Indianapolis 263.5 142 247.4 55 130.8 170 345.3 46,760 36.2 48,295 15.4 3 1,038.6 -12% Kansas City 381.9 286 384.2 46 139.8 122 388.9 83,724 86.4 117,965 11.0 1,392.1 -17% Minneapolis 245.5 114 287.4 57 375.0 139 588.0 135,799 106.6 84,469 43.1 7 1,645.7 -35% St Louis 214.8 41 178.9 26 150.0 152 423.7 77,397 126.7 115,032 50.4 5 1,144.5 0% Tertiary Midwest 876.0 119 1,190.1 51 1,296.0 96 1,491.1 69,897 374.4 54,401 110.9 3 5,338.4 -4% Total 4,315.2 129 4,695.0 55 4,447.1 147 5,572.3 101,903 1,348.4 78,572 494.1 5 20,872.2 -13% Boston 5,965.5 503 575.5 117 619.4 402 899.2 297,951 190.6 161,389 274.0 31 8,524.3 0% Northeast Hartford 89.4 194 137.8 52 117.2 97 147.7 107,153 78.4 2.9 573.5 5% Long Island 341.1 196 74.3 102 558.0 209 358.5 275,557 44.0 203,435 37.9 7 1,413.8 27% Manhattan 7,659.3 758 36.3 754 1,119.2 1,806 1,591.6 472,643 213.0 393,715 242.9 5,008 10,862.2 -56% No NJ 1,110.4 138 1,213.7 81 589.5 233 1,515.8 201,795 145.6 108,240 286.1 16 4,861.0 5% NYC Boroughs 924.4 465 631.7 265 639.3 590 1,954.3 230,216 65.6 175,321 192.8 431 4,408.1 -30% Stamford 63.2 129 128.6 281 309.3 470 118.8 332,633 619.9 -1% Westchester 254.3 137 754.8 406 274.5 187 147.4 219,764 8.6 51,273 59.6 8 1,499.1 23% Tertiary Northeast 649.6 153 523.7 50 697.5 101 653.7 120,054 388.4 119,519 32.5 8 2,945.3 9% Total 17,057.1 423 4,076.5 112 4,923.9 262 7,387.0 232,944 1,134.1 152,370 1,128.7 25 35,707.3 -29% Atlanta 1,497.5 165 1,159.7 55 894.2 163 3,062.2 97,319 515.7 107,298 147.9 6 7,277.2 18% Southeast Broward 275.8 197 254.2 121 1,094.1 333 751.2 200,635 135.2 168,134 87.4 14 2,597.9 -28% Charlotte 1,495.3 209 499.6 67 315.3 167 962.8 117,763 488.7 175,851 244.5 8 4,006.3 49% Jacksonville 172.9 133 153.6 43 212.4 191 629.2 92,200 78.1 64,738 44.7 15 1,291.0 22% Memphis 76.6 121 90.5 28 96.5 130 127.4 36,099 113.4 108,516 504.4 4% Miami/Dade Co 740.3 386 548.8 113 864.2 367 862.7 166,184 96.9 300,932 361.5 10 3,474.3 -21% Nashville 212.6 181 248.4 60 225.7 148 604.7 131,102 40.8 53,645 62.6 7 1,394.9 -27% Orlando 527.7 116 285.0 68 472.9 114 1,866.8 137,231 357.2 106,603 199.0 6 3,708.7 34% Palm Beach Co 288.5 205 117.1 125 415.2 179 264.2 187,089 57.6 9 1,142.5 -47% Raleigh/Durham 406.0 118 369.4 84 178.1 147 832.0 135,695 35.1 76,689 34.9 9 1,855.5 -19% Tampa 428.9 157 144.1 49 390.8 150 1,210.1 121,517 401.1 215,514 81.0 5 2,655.9 -4% Tertiary Southeast 1,326.3 124 1,080.2 38 2,963.1 128 4,551.2 86,662 1,002.3 75,113 460.8 2 11,383.9 -4% Total 7,448.5 169 4,950.6 57 8,122.5 154 15,724.5 107,608 3,264.4 108,498 1,781.8 4 41,292.4 -2% Austin 1,064.6 325 201.9 109 545.9 329 2,241.0 189,624 57.3 111,312 122.2 6 4,232.8 4% Southwest Dallas 2,085.6 251 1,645.7 55 917.0 179 4,112.3 115,545 436.3 126,935 251.3 3 9,448.2 15% Denver 1,011.9 244 444.5 99 295.3 191 2,388.3 206,557 136.5 127,890 199.0 10 4,475.4 -35% Houston 1,901.6 201 836.9 72 756.0 208 1,917.5 102,825 183.2 86,375 172.1 2 5,767.4 32% Phoenix 1,236.9 173 485.8 87 479.7 138 2,126.6 114,804 226.3 116,223 263.6 6 4,818.8 -11% San Antonio 186.8 149 316.3 66 111.7 149 1,082.6 103,879 72.8 64,559 67.7 4 1,837.8 54% Tertiary Southwest 614.5 126 766.6 79 964.5 136 1,839.0 77,619 559.5 126,680 80.9 2 4,825.0 1% Total 8,101.8 210 4,697.6 75 4,070.0 167 15,707.3 124,667 1,671.9 118,651 1,156.7 4 35,405.3 2% East Bay 945.8 274 475.9 154 464.5 251 576.1 233,443 194.9 224,017 481.3 24 3,138.6 -18% West Inland Empire 462.1 320 984.1 117 477.1 267 750.4 159,341 266.5 136,510 234.8 9 3,175.0 7% Las Vegas 239.3 172 226.6 95 661.9 239 1,042.2 107,491 39.0 111,538 89.5 5 2,298.5 -33% Los Angeles 4,736.6 310 2,232.0 177 1,581.7 300 2,999.6 280,274 1,053.7 373,581 386.6 33 12,990.2 -11% Orange Co 1,067.7 280 833.7 172 513.3 315 862.4 242,518 349.3 221,162 176.2 70 3,802.7 26% Portland 534.0 246 190.0 76 344.6 246 559.4 169,317 20.3 143,617 53.2 11 1,701.4 -24% Sacramento 622.3 160 133.2 57 285.5 190 576.7 136,670 54.0 99,317 97.5 11 1,769.3 3% Salt Lake City 339.6 211 112.0 117 126.0 116 609.0 177,089 36.0 42.3 3 1,264.8 38% San Diego 655.9 254 495.7 141 501.8 340 1,117.3 243,095 85.7 144,796 228.9 7 3,085.3 -37% San Francisco 3,222.6 652 204.6 461 1,191.3 845 335.3 400,601 250.5 384,126 148.6 335 5,352.9 -10% San Jose 1,950.8 490 1,156.9 214 140.6 616 718.9 413,104 255.7 241,688 222.9 29 4,445.8 8% Seattle 1,848.8 430 587.3 125 572.8 221 1,833.0 220,591 381.4 220,867 299.6 24 5,522.9 -19% Tertiary West 1,013.9 215 941.4 83 1,489.8 169 1,680.1 146,758 1,569.7 203,833 337.4 5 7,032.3 23% Total 17,639.5 334 8,573.3 137 8,350.9 250 13,660.4 198,266 4,556.7 225,343 2,798.8 13 55,579.6 -8%

Total Total US 64,590.8 262 30,112.1 81 32,426.2 187 62,611.5 139,257 13,480.4 138,562 7,903.1 7 211,124.2 -8%

Top Buyers and Sellers | H1’17

Top Buyers by Region By Investment Volume ($b)

Mid-Atlantic Buyers Sellers GIC Korea Investment Corp egency Centers Euity One EI OMERS Starood Capital Blacstone Norges Bank (NBIM) IC Milestone APS EI CBRE Global Investors HA EI Beacon Capital Partners HNA roup Brooield AM Blacstone Due ealty Midwest Brooield AM Clarion Partners ocpoint roup NYSS DRA Advisors CBE lobal Investors A ealty HNA Group Ares Management IAA Morgan Stanley Millennia Companies DA Advisors Starood Capital China Life CPP Investment Board MetLie Northood Investors Paramount roup EI Morgan Stanley PIM eal Estate F ealty CIM roup Northeast Euinix EI CBE lobal Investors HNA Group Blacstone E Income rust DA Advisors Regency Centers Scion roup Bissell Interests GIC orea Investment Corp Oatree Rockpoint Group riStar Capital LN Property Corp MIT Madison International DD Angelo, ordon Cabot Properties China Lie Verion Southeast ushner Companies Barings Regency Centers Caisse de Depot Shorenstein Northwood Investors 00 30 60 Starwood Capital 00 40 80 Madison International GIC By Number of Properties

Buyers Sellers

Southwest egency Centers Euity One EI Starwood Capital DA Advisors Colony NorthStar Goldman Sachs aiang Lie Insurance Cabot Properties CPP Investment Board Starood Capital Blacstone Blackstone HA EI Due ealty Silverpeak RE Partners Brooield AM LN Property Corp Madison International Milestone APS EI China Lie A ealty West Blacstone E Income rust DD Regency Centers ocpoint roup reenield Partners Blackstone Northood Investors Elmree Funds Brookfield AM SOE Capital EI Mac-Cali TriStar Capital Blacstone Starood Capital Commerz Real oldman Sachs CCapital Angelo, ordon Bissell Interests

Ranked by investment volume 0 100 200 0 100 200

Methodology: Rankings are based on the pro-rated share of the total property or portfolio value. In the case of joint ventures, full credit is assigned to each investor. For more information please visit the RCA website.

Top Brokers | H1’17

By Region By Sector Other By Investment Volume ($b)

Mid-Atlantic Ofﬁ ce Over $25m CBE CBRE CBRE CBRE Eastdil Secured Eastdil Secured Eastdil Secured Eastdil Secured HFF Cushman & Wakeﬁ eld HFF HFF Cushman aeield JLL NGKF NGKF NF HFF Cushman & Wakefield JLL JLL Marcus Millichap Colliers International Midwest Industrial Under $25m Beradia CBRE CBRE CBRE ransestern Eastdil Secured Cushman & Wakefield Marcus & Millichap Moran Co JLL Eastdil Secured Cushman & Wakefield Hodges ard Elliott Marcus & Millichap JLL NGKF idder Mathes HFF Colliers International Colliers International NAI lobal SVN Stan Johnson Co Northeast Retail Portfolio Sales Avison Young CBRE CBRE CBRE aler Dunlop HFF Eastdil Secured Eastdil Secured Lee Associates Eastdil Secured Marcus & Millichap Cushman & Wakefield Savills NGKF HFF HFF oseood Cushman & Wakefield Cushman & Wakefield JLL Mid-America E roup ebroe-Hammer Bereley Capital Advisors Southeast Apartment Single Asset Sales Eastern Consolidated CBRE CBRE CBRE 00 200 400 Cushman & Wakefield NGKF Eastdil Secured NGKF Marcus & Millichap HFF By Number of Properties Eastdil Secured HFF NGKF JLL Berkadia Cushman & Wakefield CBE rm ros Marcus Millichap Southwest Hotel Buyer's Rep Cushman aeield CBRE Eastdil Secured Marcus & Millichap NF HFF JLL CBRE Colliers International NGKF CBRE NGKF Eastdil Secured Marcus & Millichap Hodges Ward Elliott Cushman & Wakefield HFF Cushman & Wakefield HFF Colliers International JLL Beradia Stan Johnson Co West Dev Sites Cross-Border SVN Eastdil Secured CBRE Eastdil Secured NAI lobal CBRE Cushman & Wakefield CBRE idder Mathes NGKF Colliers International HFF ransestern JLL JLL JLL Avison Young Marcus & Millichap NGKF NGKF 0 1,000 2,000

All ranked by investment volume

Methodology: Full credit assigned to each broker when multiple brokers involved. For partial-interest, volume is based on the pro-rated share of the total property or portfolio value. Based on sell-side representation. The transaction volume of brokerage ﬁ rms that have merged are left unconsolidated before the merger date and are attributed to the surviving or newly formed company after the merger date. For more information on rankings please visit the RCA website.

Top Deals | H1’17

Property Sales

Property Location Size Type Volume ($m)∆ $/unit Buyer Seller

1 245 Park Avenue New York, NY 1,723,993 sq ft OFF 2210.0 1,282 HNA Group Brookﬁ eld AM JV Clarion Partners 2 Deutsche Bank HQ New York, NY 1,612,000 sq ft OFF 988.0 * 645 GIC Paramount Grp (REIT) JV Morgan Stanley 3 55 Broadway Cambridge, MA 375,000 sq ft OFF 750.0 2,000 MIT General Svcs Admin 4 Regeneron HQ Campus Tarrytown, NY 1,461,000 sq ft IND 720.0 493 Regeneron Pharmaceuticals Blackstone 5 Worldwide Plaza New York, NY 2,055,583 sq ft OFF 698.6 * 681 NY REIT George Comfort & Sons JV DRA Advs 6 10 Saint James Boston, MA 824,637 sq ft OFF 673.0 816 Mori Trust Liberty Mutual

7 85 Broad Street New York, NY 1,118,512 sq ft OFF 652.0 583 Caisse de Depot JV Callahan Cap Prtnrs Beacon Capital Partners JV MetLife

8 Vertex Pharmaceuticals HQ Boston, MA 1,133,723 sq ft OFF 540.0 * 1,058 Barings Senior Housing Properties Trust 9 One Federal Street Boston, MA 1,105,064 sq ft OFF 528.8 * 638 Tishman Speyer JV PNC Realty Invtrs Inc ADIA JV Lehman Bros Holdings 10 SunAmerica Center Los Angeles, CA 821,357 sq ft OFF - * - JMB Realty Corp Blackstone AKA Blackstone 11 44 Montgomery San Francisco, CA 688,902 sq ft OFF 474.2 688 Beacon Capital Partners STRS Ohio 12 Waterview Offi ce Tower Arlington, VA 633,908 sq ft OFF 459.3 724 Morgan Stanley Paramount Group (REIT) 13 One California Plaza Los Angeles, CA 1,047,060 sq ft OFF 459.0 438 Rising Realty Partners JV Colony NorthStar Beacon Capital Partners JV Madison Intl 14 Fan Pier Boston, MA 515,000 sq ft OFF 447.0 868 Deutsche AWM - US JV PFA Pension The Fallon Company JV Barings 15 1101 New York Avenue Washington, DC 374,140 sq ft OFF 389.3 1,041 OMERS JV Norges Bank (NBIM) W.R. Berkley JV Property Group Ptnrs 16 Town Square Enterprise, NV 1,148,390 sq ft RET 389.0 339 TIAA JV Third Lake Capital LLC Five Mile Capital JV Oaktree 17 Alohilani Resort Waikiki Beach Honolulu, HI 839 units HTL 386.3 ** 613,826 Commerz Real Highgate Holdings 18 HBO (Leasehold) New York, NY 344,000 sq ft OFF 370.0 1,076 Brookfi eld AM JV Swig Company Nickerson Family 19 100 High Street Boston, MA 529,730 sq ft OFF 370.0 698 Rockpoint Group CBRE Global Investors OBO OMERS 20 Center Plaza Boston, MA 726,000 sq ft OFF 365.0 503 Synergy RE Services JV GreenOak Shorenstein 21 181 West Madison Building Chicago, IL 952,559 sq ft OFF 355.0 373 HNA Group CBRE Global Investors 22 Liberty Mutual Plano, TX 992,884 sq ft OFF - - Liberty Mutual KDC 23 Midtown 21 Seattle, WA 373,000 sq ft OFF 330.2 885 Metzler RE OBO Union Investment Trammell Crow Co (CBRE) JV MetLife 24 Farley Post Offi ce New York, NY 1,378,125 sq ft OFF 320.0 232 Vornado JV Related Companies Empire State Dev Corp 25 Westin Maui Resort & Spa Kaanapali, HI 759 units HTL 317.0 417,655 Trinity Investments JV Oaktree Marriott

Portfolio Sales

Buyer Seller Location # Props Type Volume ($m) ∆

1 Regency Centers Equity One (REIT) Multiple, USA 137 APT, DEV, IND, OFF, RET 4781.0 * 2 Starwood Capital Milestone APTS REIT Multiple, USA 79 APT 3002.8 3 HTA (REIT) Duke Realty USA 69 OFF 2310.0 4 Northwood Investors Bissell Interests Charlotte, NC 39 DEV, HTL, OFF 1176.8 5 DRA Advisors Cabot Properties Multiple, USA 128 IND 1069.9 6 Equinix (REIT) Verizon Americas 27 IND - 7 GIC JV Korea Investment Corp Beacon Capital Partners Mid-Atlantic 3 OFF 907.0 * 8 Brookﬁ eld AM TA Realty Multiple, USA 45 IND, OFF 854.5 9 Madison International DDR Multiple, USA 52 RET 838.8 * 10 China Life ElmTree Funds Multiple, USA 48 IND, OFF, RET 807.3 * **

∆ When prices are not known, estimated prices are used in the ranking but are not shown. Volume is adjusted pro-rata for partial interests although $/unit reﬂ ects 100% valuation. * Partial interest ** Forward sale

Jim Costello, Senior Vice President Contact Robert M. White, Jr., Founder & President Alexis Maltin, Manager, Analytics Elizabeth Szep, Manager, Analytics Ravi Govada, Senior Analyst

About Real Capital Analytics Real Capital Analytics (RCA) is the authority on the deals, the players and the trends that drive the commercial real estate investment markets. Covering all markets globally, RCA delivers timely and reliable data with unique insight into market participants, pricing and capital flows. The most active investors, lenders and advisors depend on RCA’s market intelligence to formulate strategy and to source, underwrite and execute deals. An industry pioneer since 2000, RCA has offices in New York, San Jose, London and Singapore. For more information, visit: rcanalytics.com

About Capital Trends Capital Trends reports analyze and interpret trends in the global real estate market using RCA’s comprehensive data. US Capital Trends is a monthly edition comprising an overview of the U.S. market and separate reports on the five main property types. Asia Pacific, Europe and Global Capital Trends are published quarterly.

Methodology Data based on properties and portfolios $2.5m and greater unless otherwise stated.

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