Seattle Office Market Overview Year End 2015

Commercial Real Estate Services 600 University Street, Suite 2220 | broderickgroup.com Seattle Office Market Overview Year End 2015

DOWNTOWN SEATTLE OFFICE MARKET STATISTICS

Entire Seattle Market # of buildings w/ 50,000 SF or more of contiguous Total SF: 53,760,829 Qtr Change YTD Change available space within Vacant SF: 3,825,847 each category Vacant %: 7.12% ( -1.09%) ( -2.52%) Asking Rates: $35.36/SF, G ( +$0.59) ( +$0.89) Entire Seattle Market Absorption Qtr: 315,494 SF Absorption YTD: 1,471,361 SF

Class A Buildings 12 Total SF: 34,707,290 Vacant SF: 2,646,575 Qtr Change YTD Change Class A Buildings Vacant %: 7.63% ( -0.14%) ( -1.62%) Asking Rates: $39.87/SF, G ( +$2.85) ( +$4.92) Absorption Qtr: 234,361 SF 11/ Absorption YTD: 941,617 SF 12

Class A CBD Class A CBD Total SF: 18,844,936 Vacant SF: 1,569,588 Qtr Change YTD Change Vacant %: 8.33% ( -1.51%) ( -3.92%) 6/ Asking Rates: $40.07/SF, G ( +$0.21) ( +$3.06) 12 Absorption Qtr: 32,509 SF Absorption YTD: 522,017 SF Class A+* Class A+ * Total SF: 6,102,368 Vacant SF: 478,085 Qtr Change YTD Change 1 / Vacant %: 7.83% ( +0.91%) ( -0.25%) 12 Asking Rates: $44.29/SF, G ( +$0.37) ( +$2.89) Absorption Qtr: -21,163 SF Absorption YTD: 17,007 SF

Two , US Bank Centre, Fourth & Madison, , * broderickgroup.com | pg. 2 Russell Investments Center, 1918 Eighth, West 8th Seattle Office Market Overview Year End 2015 SIGNIFICANTSignificant LeasesLEASES LEASING ACTIVITY Quarter Tenant Building Submarket Size (SF) Significant leases in the Seattle area for the Fourth Quarter included Q4 2015 Insurance (Expansion + Renewal) CBD 504,000 market movers leasing space in both existing and future space. The largest deal of the quarter was an expansion by Safeco Insurance of Q4 2015 DocuSign 999 Third CBD 119,000 220,000 SF in Safeco Plaza which now puts them at an estimated total Q4 2015 Moss Adams (Renewal) 999 Third CBD 77,274 size of 504,000 SF in Safeco Plaza. In 999 Third significant leases were Q4 2015 URS Aecom 1111 Third CBD 55,000 signed by DocuSign for 119,000 SF and Moss Adams lease renewal of 77,274 SF. Additional notable leases were Seattle Credit Union Q4 2015 Seattle Credit Union Home Plate Center (S) SODO 43,500 becoming the first tenant in Home Plate Center South by leasing 43,500 Q4 2015 Groupon 1201 Third CBD 42,000 SF, URS Aecom leased 55,000 SF in 1111 Third, Groupon leased 42,000 SF in 1201 Third, and Antioch University is committed to moving its Q4 2015 Antioch University 3rd & Battery Denny Regrade 38,000 campus to Third and Battery (Q3 2016 Delivery) with a pre-lease of Q3 2015 Tableau Software North Edge Lake Union 210,000 38,000 SF. Q3 2015 Avvo 8th & Olive CBD 100,000 LARGESTLargest CONTIGUOUS Contiguous Blocks BLOCKS Available Square Q3 2015 Uber Second & Seneca CBD 50,000 Rank Building Submarket Floors Feet 1 Hill7 Denny Regrade 2-7 168,203 Q3 2015 Hillis Clark Martin 999 Third CBD 32,000 2 Home Plate Center South SODO 4-7 166,348 Q3 2015 Perkins + Will CBD 20,300 3 325 Eastlake - Yale & Thomas Lake Union 1-7 161,095 4 Westlake Steps (1101 Westlake) Lake Union 1-6 150,621 Q2 2015 Holland America Line Holland America Building Queen Anne 175,000 5 800 Fifth CBD 23-28 117,601 6 Met Park East CBD 2-6 97,773 Q2 2015 Community Health Plan 1111 Third CBD 91,816 7 8th & Olive CBD 1-7 97,301 8 800 Fifth CBD 4-5 81,272 Q2 2015 Juno Therapeutics 400 Dexter Lake Union 80,000 9 428 Westlake Ave North Lake Union 2-6 80,978 Stadium Innovation Q2 2015 Oculus VR SODO 51,000 10 400 Fairview Lake Union 6-8 78,556 Center Q2 2015 Pitchbook 901 Fifth CBD 35,000 MOSTMost VACANTVacant Buildings BUILDINGS (Sorted (BY By AVAILABLE % Available) SF) Available Percent Rank Building Submarket Q1 2015 Amazon.com Troy Block Lake Union 817,000 Square Feet Available 1 800 Fifth CBD 259,000 27% Q1 2015 Facebook.com Dexter Station Lake Union 274,000 2 CBD 189,254 12% 3 Hill7 Denny Regrade 170,064 60% Q1 2015 HBO Hill7 Lake Union 112,000 4 Home Plate Center South SODO 166,348 88% Q1 2015 Porch 2200 First Ave South SODO 70,000 5 325 Eastlake - Yale & Thomas Lake Union 161,095 88% 6 Westlake Steps (1101 Westlake) Lake Union 150,621 100% Q1 2015 Impinj 400 Fairview Lake Union 59,662 7 1201 Third CBD 144,406 13% 8 Two Union Square CBD 107,795 10% Q1 2015 Car Toys / Wireless Advocates 400 Fairview Lake Union 51,814 9 8th & Olive CBD 107,151 36% 10 Met Park East CBD 100,398 27% Q1 2015 Best Buy Denny Way Building Lake Union 32,000

broderickgroup.com | pg. 3 Seattle Office Market Overview Year End 2015 Seattle Office Market Class A Historical Overview Seattle Class A HistoricalOffice Market Summary 2005 - Year End 2015 Historical Overview Forecast 2016 - 2019

Avg. Gross Year-End Vacant Net Vacancy Annual Rent Rate Year Rental Rate New Construction Inventory Square Feet Absorption Rate Growth Growth SEATTLE OFFICE MARKET FORECAST (Direct) Seattle Class A Office Market Historical Overview 2005 $26.13 25,624,369 0 2,685,342 376,601 10.5% 1.5% -1.7% Avg. Gross Year-End Vacant Net Vacancy Annual Rent Rate Year Rental Rate New Construction Inventory Square Feet Absorption Rate Growth Growth The Seattle Class A vacancy rate is projected to 2006 $29.41 26,695,478(Direct) 1,071,109 2,009,591 1,888,918 7.5% 7.1% 12.6% decrease throughout the first quarterSeattle of Class 2016. A Office Market2007 $37.31 26,917,0432005 $26.13 221,565 25,624,369 2,121,9800 124,7522,685,342 376,601 7.9% 10.5% 0.5% 1.5% 26.9% -1.7% Historical Overview 2006 $29.41 26,695,478 1,071,109 2,009,591 1,888,918 7.5% 7.1% 12.6% The increasing limitation of rentable Class A 2008 $37.91 27,446,933 529,890 2,963,393 (119,506) 10.8% -0.4% 1.6% Avg. Gross Year-End Vacant Net Vacancy Annual Rent 2007Rate $37.31 26,917,043 221,565 2,121,980 124,752 7.9% 0.5% 26.9% Year Rental Rate New Construction Inventory Square Feet Absorption Rate Growth Growth space will further(Direct) drive up rents. 2009 $31.41 29,861,3352008 $37.91 2,414,402 27,446,933 5,936,082 529,890(644,971) 2,963,393 (119,506)19.9%10.8% -2.2% -0.4% -17.1% 1.6%

2005 $26.13 25,624,369 0 2,685,342 376,6012010 10.5% $31.38 1.5% 30,762,677 -1.7%2009 $31.41 901,342 29,861,335 5,554,673 2,414,402 994,359 5,936,082 (644,971) 18.1%19.9% 3.2% -2.2% -0.1% -17.1%

2006 $29.41 26,695,478 1,071,109 2,009,591 1,888,918 7.5% 7.1% 12.6%2010 $31.38 30,762,677 901,342 5,554,673 994,359 18.1% 3.2% -0.1% In addition, high price sales of Class A office 2011 $31.20 31,608,885 846,208 4,590,319 1,178,488 14.5% 3.7% -0.6% 2007 $37.31 26,917,043 221,565 2,121,980 124,752 7.9% 0.5% 26.9%2011 $31.20 31,608,885 846,208 4,590,319 1,178,488 14.5% 3.7% -0.6% 2012 $31.80 31,985,904 400,563 4,254,955 1,490,442 13.3% 4.7% 1.9% buildings2008 in 2015 $37.91 will 27,446,933continue the 529,890 upwards 2,963,393 (119,506) 10.8% -0.4% 1.6%2012 $31.80 31,985,904 400,563 4,254,955 1,490,442 13.3% 4.7% 1.9% momentum2009 on $31.41 rents as 29,861,335the new owners 2,414,402 aim to 5,936,082 (644,971)201319.9% $33.62 -2.2% 32,027,022 -17.1%2013 $33.62 180,710 32,027,022 3,702,487 180,710 800,712 3,702,487 800,71211.6% 11.6% 2.5% 2.5% 5.7% 5.7% 2010 $31.38 30,762,677 901,342 5,554,673 994,359 18.1% 3.2% -0.1%2014 $34.95 32,661,260 480,000 3,018,471 1,029,132 9.2% 3.2% 4.0% hit their underwriting projections while taking 2014 $34.95 32,661,260 480,000 3,018,471 1,029,132 9.2% 3.2% 4.0% 2011 $31.20 31,608,885 846,208 4,590,319 1,178,488 14.5% 3.7% -0.6%Year End $39.87 34,707,290 1,778,064 2,646,575 969,059 7.6% 2.8% 14.1% Year End 2015 advantage2012 of the$31.80 lack of 31,985,904 expected deliveries 400,563 in 4,254,955 1,490,442 13.3%$39.87 4.7% 34,707,290 1.9% 1,778,064 2,646,575 969,059 7.6% 2.8% 14.1% 2015 Projected - End of Year the first2013 and second $33.62 quarters 32,027,022 of 2016. 180,710 3,702,487Projected 800,712 - End of 11.6% Year 2.5% 5.7%2016 $41.86 36,620,481 1,913,191 2,609,766 1,950,000 7.1% 5.3% 5.0% 2014 $34.95 32,661,260 480,000 3,018,471 1,029,132 9.2% 3.2% 4.0% 2016 $41.86 36,620,4812017 $43.54 1,913,191 39,369,097 2,609,766 2,748,616 1,950,000 3,449,269 1,909,113 7.1% 8.8% 5.3% 4.8% 5.0% 4.0% Year End $39.87 34,707,290 1,778,064 2,646,575 969,059 7.6% 2.8% 14.1%2018 $45.28 41,787,097 2,418,000 4,329,503 1,537,765 10.4% 3.7% 4.0% 2015 2017 $43.54 39,369,097 2,748,616 3,449,269 1,909,113 8.8% 4.8% 4.0% Projected - End of Year 2019 $42.52 43,257,097 1,470,000 4,206,220 1,593,283 9.7% 3.7% 4.0% 2018 $45.28 41,787,097 2,418,000 4,329,503 1,537,765 10.4% 3.7% 4.0% 2016 $41.86 36,620,481 1,913,191 2,609,766 1,950,000 7.1% 5.3%Summary 5.0% 2016-2019 Total Average Total Average Average Average

2017 $43.54 39,369,097 2,748,616 3,449,269 1,909,1132019 8.8% $42.52 4.8% 43,257,097 4.0% 1,470,000 4,206,2208,549,807 1,593,283 3,648,690 6,990,162 9.7% 9.0% 3.7% 4.4% 4.0% 4.3% Notes: 2018 $45.28 41,787,097 2,418,000 4,329,503 Summary1,537,765 2016-2019 10.4% 3.7%14.0% Year end inventory, (CBD, Denny,Total Lk Union, Pioneer Sq, Waterfront,Average Fremont/UW), Class A, 20,000Total SF and greater buildingsAverage (CoStar). Excludes owner/user Average except Amazon Average 2 Vacant square feet and total absorption statistics provided by CoStar. Includes direct and sublease space. 2019 $42.52 43,257,097 1,470,000 4,206,220 1,593,283 9.7% 3.7%34.0% New supply 2015-2019 is product of known projects and estimated probability of completion/financing. 8,549,807 3,648,690 6,990,162 9.0% 4.4% 4.3% Summary 2016-2019 Total Average Total Average Average Average4 All data are from end of the quarter specified. Notes: 5 Annual growth is net absorption divided by inventory. 8,549,807 3,648,6901 Year 6,990,162 end inventory, 9.0%(CBD, Denny, Lk 4.4% Union, Pioneer64.3% 2012 Sq, deliveries Waterfront, included: Fremont/UW), Amazon Phase V, Class Emerald A, Landing, 20,000 and SF Home and Plate greater Center buildings I (CoStar). Excludes owner/user except Amazon Notes: 7 2013 deliveries included: Bullitt Center (50k) delivered in Q2, 202 Westlake (130k) delivered in Q3 2 Vacant square feet and total absorption statistics provided by CoStar. Includes direct and sublease space. 1 Year end inventory, (CBD, Denny, Lk Union, Pioneer Sq, Waterfront, Fremont/UW), Class A, 20,000 SF and greater buildings (CoStar). Excludes owner/user except Amazon 8 2014 deliveries included: Stone34 (106k) delivered in Q2, and Vulcan - Amazon Phase VI (392k) delivered in Q4 2 Vacant square feet and total absorption statistics provided by CoStar. Includes direct and sublease space. 3 New supply 2015-2019 is product of known projects9 2015 and deliveries estimated (projected probability and completed) of completion/financing. include: Dexter Station (346k) delivered in Q1, Hill7 (285k) delivered in Q2, 400 Fairview (320k), Amazon Phase VII (312k), Amazon Phase VIII (316k), Allen Institute for Brain Science (245k), and Westlake Steps (150k) 3 New supply 2015-2019 is product of known projects and estimated probability of completion/financing. 4 All data are from end of the quarter specified. 10 2016 projected deliveries include: Troy Block Phase 1 (395k), NorthEdge (214k), 200 Occidental (173k), 2701 Eastlake (44k), 4 All data are from end of the quarter specified. Urban Union (291k), 1007 Stewart (365k), Fairview Research Center II (140k), 220 West Harrison (184k), and 503 Westlake (39k) 5 Annual growth is net absorption divided by inventory. 5 Annual growth is net absorption divided by inventory. 11 2017 projected deliveries include: (750k), The Mark (528k),Troy Block Phase 2 (422k), 400 Dexter (254k), Buca di Bepo Site (200k), 450 Alaskan (165k), and Tilt49 (307k) 6 2012 deliveries included: Amazon Phase V, Emerald Landing, and Home Plate Center I 6 2012 deliveries included: Amazon Phase V, Emerald12 2018Landing, projected and deliveries Home include: Plate 333Center 8th Avenue I North (194k), 300 8th Avenue North (194k), Legacy Commercial Development (60k), Sellen Site (153k), Amazon's 4th Block (836k), and Vulcan's Block 48 (400k) 7 2013 deliveries included: Bullitt Center (50k) delivered in Q2, 202 Westlake (130k) delivered in Q3 7 2013 deliveries included: Bullitt Center (50k) delivered in Q2, 202 Westlake (130k) delivered in Q3 13 2019 projected deliveries include: Rainier Square (780k), Second & University (690k) 8 2014 deliveries included: Stone34 (106k) delivered in Q2, and Vulcan - Amazon Phase VI (392k) delivered in Q4 8 2014 deliveries included: Stone34 (106k) delivered in Q2, and Vulcan - Amazon Phase VI (392k) delivered in Q4 9 2015 deliveries (projected and completed) include: Dexter Station (346k) delivered in Q1, Hill7 (285k) delivered in Q2, 400 Fairview (320k), Amazon Phase VII (312k), Amazon Phase VIII (316k), Allen Institute for Brain Science (245k), and Westlake Steps (150k) 9 2015 deliveries (projected and completed) include: Dexter Station (346k) delivered in Q1, Hill7 (285k) delivered in Q2, 400 Fairview (320k), Amazon Phase VII (312k), Amazon Phase VIII (316k), Allen 10 2016 projected deliveries include: Troy Block Phase 1 (395k), NorthEdge (214k), 200 Occidental (173k), 2701 EastlakeInstitute (44k), for Brain Science (245k), and Westlake Steps (150k) Urban Union (291k), 1007 Stewart (365k), Fairview Research Center II (140k), 220 West Harrison (184k), and 503 Westlake10 2016 (39k) projected deliveries include: Troy Block Phase 1 (395k), NorthEdge (214k), 200 Occidental (173k), 2701 Eastlake (44k), 11 2017 projected deliveries include: Madison Centre (750k), The Mark (528k),Troy Block Phase 2 (422k), 400 Dexter (254k),Urban Buca Union di Bepo (291k), Site (200k), 1007 450 Stewart Alaskan (365k), (165k), and Fairview Tilt49 (307k) Research Center II (140k), 220 West Harrison (184k), and 503 Westlake (39k) 12 2018 projected deliveries include: 333 8th Avenue North (194k), 300 8th Avenue North (194k), Legacy Commercial Development (60k), Sellen Site (153k), Amazon's 4th Block (836k), and Vulcan's Block 48 (400k) 11 2017 projected deliveries include: Madison Centre (750k), The Mark (528k),Troy Block Phase 2 (422k), 400 Dexter (254k), Buca di Bepo Site (200k), broderickgroup.com 450 Alaskan (165k), and Tilt49 |(307k) pg. 4 13 2019 projected deliveries include: Rainier Square (780k), Second & University (690k) 12 2018 projected deliveries include: 333 8th Avenue North (194k), 300 8th Avenue North (194k), Legacy Commercial Development (60k), Sellen Site (153k), Amazon's 4th Block (836k), and Vulcan's Block 48 (400k) 13 2019 projected deliveries include: Rainier Square (780k), Second & University (690k) Seattle Office Market Overview Year End 2015 Seattle Office Class A Market Vacancy PercentageClass A Vacancy Vs Rates and Average Gross Rental Rates

22.5% (* Projected) CLASS A VACANCY RATES $45.28 19.9% $45.00 At 7.63%, Class A Seattle vacancy rates decreased by -0.14% over- 20.0% $43.54 $42.52 18.1% $41.86 all since the end of the Third Quarter of 2015, and by -1.62% since 17.5% $39.87 2014’s year end. Over the course of the Fourth Quarter, the Lake $40.00 $37.91 14.5% 15.0% 14.1% $37.31 Union submarket (+3.00%) saw an increase in vacancy from the 13.1% 13.3% 12.5% $34.95 end of the Third Quarter. All other submarkets experienced a loss 12.5% 11.6% $35.00 Rental Rate ($) $33.62 10.8% 10.5% 10.4% of vacancy at the end of the Fourth Quarter of 2015: Seattle CBD 9.7% 10.0% $31.41 $31.80 $31.38 $31.20 9.2% 8.8% $30.27 (-1.51%) – which has the strongest influence on the overall vacan- $29.41 7.9% 7.5% 7.6% $30.00 7.5% 7.1% $27.80

cy – Denny Regrade (-0.73%), Pioneer Square (-0.56%), Waterfront (%) Vacancy $26.57 $26.13 (-0.51%), and Fremont (-0.25%). Due to the decreases in vacancies 5.0% $25.00 among all but one of the submarkets the overall Class A Seattle 2.5% vacancy rate declined.

0.0% $20.00 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Year End *2016 *2017 *2018 *2019 2015 CLASS A RENTAL RATES Class A Vacancy % Class A Rental Rates (Gross) Class A gross rental rates saw an increase of $2.85/ SF from $37.02 in Q3 2015 to a current rate of $39.87/ SF. The two submarkets with Seattle Office Class A Absorption the largest quarterly changes were Pioneer Square which increased Seattle Class A Office Absorption Trends Net Absorption $0.38 to a current rate of $35.29/ SF, and Lake Union which experi- 2002-2019 (* Projected) enced a quarterly raise of $0.36 to a current rate of $37.80/ SF. All 3,400,000 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Year End 2015 *2016 *2017 *2018 *2019 3,200,000 submarkets experienced an increase in rental rates for the Fourth 3,000,000 Quarter of 2015. 2,800,000 2,600,000

2,400,000

2,200,000

NET ABSORPTION 2,000,000 1,950,000 1,888,918 1,888,918 The Seattle Class A market had a positive quarterly absorption 1,800,000 1,593,283 1,593,283

1,600,000 1,537,765 1,490,442 1,490,442 of 234,361 SF during the Fourth Quarter, bringing the 2015 1,400,000 1,205,000 1,205,000 1,200,000 1,178,488 1,029,132 1,029,132 994,359 994,359

year-to-date absorption to 941,617 SF. This sits very close to the 969,059 1,000,000 800,712 800,712 971,533 SF projection that was for Class A 2015, and is in-line Square Feet (SF) 800,000 625,441 625,441 600,000 with the Class A market trends, which experienced a positive net 400,000 376,601 273,337 273,337 129,859 129,859 absorption of 1,029,132 SF in 2014, a positive net absorption of 200,000 124,752 0 800,000 SF for 2013 and has absorbed over 5.8 million SF since (200,000) (400,000) the end of 2009. (119,506) (600,000)

(800,000) (644,971)

broderickgroup.com | pg. 5 Seattle Office Market Overview Seattle Office Class A Market Year End 2015 Seattle Class A Year to Date Net Absorption by Submarket Class A YearAverag End Directe Rental Gross Rates (Gross) Rental Rates by Submarket Seattle Class A Year to Date Net Absorption by Submarket Seattle Class A Office Seattle Class A Year to Date Net AbsorptionLake by Union SubmarketDenny Regrade Waterfront Seattle CBD Pioneer Square Fremont/Univ Overall Class A Vacancy by submarket Seattle Office Class A Absorption Seattle Class A Office Year-to-Date Absorption Trends by Submarket Vacancy by submarket$39.87 Fremont/Univ 31,786 3% 5.6% Pioneer Square 32,160 3% Lake Union 3.4% $36.16 6.0% Fremont/Univ 31,786 3% 5.6% 9.0% Fremont/UnivLake Union28,330128,837 4% 14% Pioneer Square 32,160 3% Lake Union 3.4% Pioneer Square 24,935 4% 6.0% $35.29 4.7% 9.0% Lake Union 128,837Lake 14%Union -17,079 -2% 7.8% Denny Regrade 8.0% Denny Regrade 90,618 12% 4.7% 7.3% Denny Regrade 110,179 12% 7.8%$40.07 Lake Union Denny Regrade 8.0% 7.3% 11.6% Denny Regrade 9.2% Waterfront 6.0% Denny Regrade 110,179 12% Waterfront $34.40 Waterfront 90,944 12% Lake Union 5.5% 11.6% LakeWaterfront Union 9.2% SeattleDenny CBD Regrade 6.0% Waterfront 116,638 12% Denny Regrade 5.5% Pioneer Square $32.88 11.9% Seattle CBD 522,017 56% Waterfront Seattle CBD 10.5% Fremont/Univ Waterfront 9.8% Seattle CBD 8.3% 11.9% Waterfront 116,638 12% SeattleSeattle CBD CBD $37.80 10.5% Pioneer Square 9.8% Seattle CBD 522,017 56% Pioneer Square 3.5% 8.3% Fremont/Univ$25.00 $26.00 $27.00 $28.00 $29.00 $30.00Pioneer $31.00 Square $32.00 $33.00 $34.00 $35.00 $36.00 $37.003.5% $38.00 $39.00 $40.00 $41.00 Fremont/Univ 4.1% 3.5% 3.6% Seattle CBD 489,508 66% 3.5% Pioneer Square 4.1% Seattle3.6% Office2.0% Class A Market Seattle Class A Office 2.2% VacancyFremont/University by submarket 2.2% 2.0% Vacancy Percentage1.9% by Submarket Fremont/University 2.2% 5.6% 2.2% 1,000,000 Class A Net Absorption YTD 3.4% 1.9% 9.3% Lake Union 6.0% 950,000 9.0% 8.2% Overall Class A 7.8% 900,000 9.3% 7.6% Overall Class A, 4.7% 850,000 Overall Class A 7.8% 8.2% 941,617 Denny Regrade 8.0% 7.8% 800,000 7.3% Class A Net Absorption YTD 0.0% 2.0% 4.0% 7.6% 6.0% 8.0% 10.0% 12.0% 14.0% 1,000,000 750,000 750,000 Class A Net Absorption YTD 950,000 700,000 11.6% Waterfront 9.2% Q1 2015 Q2 2015 Q3 2015 Q4 2015 700,000 0.0% 6.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 900,000 650,000 Overall Class A, 5.5% 600,000 Overall Class A, 850,000 650,000 Q1 2015 Q2 2015 Q3 2015 Q4 2015 550,000 941,617 11.9% 800,000 707,256 Seattle CBD 10.5% 500,000 600,000 9.8% 750,000 8.3% 450,000 700,000 550,000 400,000 3.5% 650,000 3.5% 350,000 500,000 Pioneer Square 4.1% 3.6% 600,000 300,000 450,000 Note: 550,000 250,000 2.0% Overall Class A Net 2.2% 500,000 200,000 400,000 Fremont/University 2.2% 1.9% 450,000 150,000 350,000 Absorption includes 400,000 100,000 absorption for First Hill / 9.3% 300,000 8.2% 350,000 50,000 Overall Class A 7.8% Capital Hill submarket. 7.6% 300,000 0 250,000

250,000 200,000 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 200,000 Q1 2015 Q2 2015 Q3 2015 Q4 2015 150,000 150,000 broderickgroup.com | pg. 6 100,000 100,000

50,000 50,000 0 0 Seattle Office Market Overview Year End 2015

Seattle Office Class A Statistics Submarket Statistics

Seattle la Sarket Statitic Vacancy Rate Vacancy Rate Rental Rates Rental Rates Absorption Asorption Submarket Vacancy Rate Seattle la RentalSarket Rates Statitic Quarterly Change YTD Change Quarterly Change YTD Change (QTR) (YTD) Vacancy Rate Vacancy Rate Rental Rates Rental Rates Absorption Asorption SubmarketCBD Vacancy8.33% Rate -1.51% -3.92% Rental$40.07 Rates $0.21 $3.06 32,509 522,017 Quarterly Change YTD Change Quarterly Change YTD Change (QTR) (YTD) DennyCBD Regrade 7.27%8.33% -0.73%-1.51% -3.92%2.64% $32.88$40.07 $0.21$0.18 $3.06$3.30 32,50919,561 522,017110,179 DennyLake RegradeUnion 7.27%8.95%-0.73% 3.00% 2.64%6.17% $32.88$37.80 $0.18$0.36 $3.30$3.33 145,916 19,561 128,837110,179 LakeFremont Union 1.91%8.95%-0.25% 3.00% -0.26%6.17% $37.80$36.16 $0.36$0.22 $3.33$0.52 145,916 3,456 128,837 31,786 PioneerFremont Square 3.57%1.91% -0.56%-0.25% -2.21%-0.26% $35.29$36.16 $0.38$0.22 $1.44$0.52 7,2253,456 32,16031,786 PioneerWaterfront Square 5.53%3.57% -0.51%-0.56% -8.59%-2.21% $34.40$35.29 $0.12$0.38 $1.25$1.44 25,694 7,225 116,638 32,160 Waterfront 5.53% -0.51% -8.59% $34.40 $0.12 $1.25 25,694 116,638 Seattle Entire Sarket Statitic Vacancy Rate Vacancy Rate Rental Rates Rental Rates Absorption Asorption Submarket Vacancy Rate Seattle Entire SarketRental Rates Statitic Quarterly Change YTD Change Quarterly Change YTD Change (QTR) (YTD) Vacancy Rate Vacancy Rate Rental Rates Rental Rates Absorption Asorption SubmarketCBD Vacancy8.74% Rate -0.77% -3.33% Rental$39.11 Rates $0.68 $2.56 124,352 648,886 Quarterly Change YTD Change Quarterly Change YTD Change (QTR) (YTD) DennyCBD Regrade 7.42%8.74% -0.20%-0.77% -3.33%0.34% $31.82$39.11 $0.68$0.49 $2.56$1.55 124,352 16,605 648,886188,026 DennyLake RegradeUnion 7.42%7.47%-0.20% 2.36% 0.34%4.14% $31.82$32.10 $0.49$0.62 $1.55$2.42 123,770 16,605 152,384188,026 LakeFremont Union 2.39%7.47% 0.15%2.36% -0.70%4.14% $32.10$27.88 $0.49$0.62 $0.96$2.42 123,770 5,994 152,384 49,659 PioneerFremont Square 5.12%2.39%-0.30% 0.15% -3.75%-0.70% $31.42$27.88 $0.41$0.49 $2.45$0.96 37,091 5,994 266,109 49,659 PioneerWaterfront Square 5.63%5.12% -0.28%-0.30% -3.75%-5.14% $31.42$31.17 $0.41$0.05 $2.45$0.87 37,091 7,682 166,297266,109 Waterfront 5.63% -0.28% -5.14% $31.17 $0.05 $0.87 7,682 166,297

broderickgroup.com | pg. 7 Seattle Office Market Overview Year End 2015 Investment SalesQ1 2015 Update - Q4 2015 INVESTMENT SALES UPDATE Q4 2015 Alley 24 - On Market Quarter Building Submarket Bldg Size (SF) Buyer Price ($) / SF Under Contract On Market Alley24 Lake Union 182,000 N/A --- On Market Broadacres Building CBD 123,109 N/A --- On Market 1411 Fourth CBD 118,000 N/A --- Q4 2015 Q4 2015 Amazon Phase 6 Lake Union 394,578 Union Investment Real Estate $756.96/SF 1411 Fourth - On Market Q4 2015 Dexter Horton CBD 336,500 Great Eagle Holdings Ltd. $369.87/SF Q4 2015 400 Fairview Lake Union 336,000 TIAA-CREF $763.00/SF Q4 2015 CBD 169,883 Gaw Capital $291.38/SF Q4 2015 1101 Westlake Lake Union 150,000 Invesco $449.33/SF Q4 2015 Pioneer Building Pioneer Square 72,000 Level Office $285.00/SF Q4 2015 Olympic Block Pioneer Square 70,500 Brickman Olympic LLC $316.54/SF Q4 2015 701 Dexter Avenue North Lake Union 62,000 Unico $287.67/SF Q4 2015 110 Cherry Street Pioneer Square 24,406 Good Arts LLC $192.58/SF Q3 2015 Q3 2015 Columbia Center CBD 1,680,937 Gaw Capital $417.98/SF Broadacres Building - On Market Q3 2015 2201 Westlake Denny Regrade 317,102 American Realty Advisors $791.54/SF Q2 2015 Q2 2015 111 South Jackson St Pioneer Square 78,564 RREEF America $433/SF Q1 2015 Q1 2015 Amgen Campus Queen Anne 750,000 Expedia $305/SF Q1 2015 Met Park East CBD 363,725 CBRE Global Investors $383/SF Q1 2015 2601 Elliott Waterfront 339,799 JP Morgan Chase $512/SF Q1 2015 Met Park West CBD 336,041 CBRE Global Investors $398/SF Q1 2015 Blanchard Plaza Denny Regrade 255,818 AFL-CIO Building Investment Trust $479/SF Q1 2015 1300 Dexter Building Lake Union 79,877 PEMCO Mutual Insurance Company $395/SF

broderickgroup.com | pg. 8 Seattle Office Market Overview Year End 2015 Seattle New Developments Current Under Construction Developments in Seattle NEW CONSTRUCTION New Office Development Projects (Under Construction)

Buildings that were completed in the last quarter Project Name Submarket Square Footage Developer Scheduled Completion Date % Leased of 2015 include: Vulcan’s Allen Institute for Brain Troy Block Phase I South Lake Union 395,000 Touchstone Q2 2016 100% Science (245,000 SF), Amazon’s Phase VII (312,000 Urban Union South Lake Union 291,000 Schnitzer West Q2 2016 0% SF) & VIII (316,000 SF), Amazon’s Owner/User Denny NorthEdge Lake Union 214,000 Touchstone Q3 2016 100% Regrade Development Site Phase I (1,048,000 SF), and Invesco’s Westlake Steps (150,621 SF) at 1101 200 Occidental Pioneer Square 173,000 Urban Visions Q3 2016 100% Westlake which delivered late Q4 2015. Third & Battery Belltown 68,429 Martin Selig Q3 2016 83% Midtown 21 (1007 Stewart) Denny Regrade 365,000 Trammell Crow Q4 2016 0%

Currently under construction with a Q2 2016 deliv- Holland America Building Queen Anne 183,779 Martin Selig Q4 2016 100% ery date is Schnitzer West’s Urban Union (291,000 400 Dexter (Alexandia Center) CBD 288,850 Alexandria Real Estate Equities Q1 2017 64%

SF) and Touchstone’s Troy Block Phase I (395,000 SF). Madison Centre CBD 750,000 Schnitzer West Q2 2017 0% Daniels Development, The Mark South Lake Union 528,000 Q2 2017 0% Stockbridge Capital In the second half of 2016, Touchstone’s NorthEdge Tilt49 Denny Regrade 307,296 Touchstone Q2 2017 0% (214,000 SF), Urban Vision’s 200 Occidental (173,000 Troy Block Phase II South Lake Union 422,000 Touchstone Q3 2017 100% SF), Martin Selig’s Third & Battery (68,429 SF), Tram- Hawk Tower Pioneer Square 199,870 AmericanLife Q3 2017 0% mell Crow’s Midtown 21 (365,000 SF), and Martin Selig’s Holland America Building (183,779 SF) are Roy Street South Lake Union 172,507 Talon, Lake Union Partners Q3 2017 0% slated to deliver. TOTALS 4,358,731 37%

Troy Block Urban Union North Edge 200 Occidental Midtown 21 Madison Centre The Mark Tilt49

broderickgroup.com | pg. 9 Seattle Office Market Overview Appendix Year End 2015 Detailed Charts & Graphs

Seattle Office Class A Market Vacancy Percentage and Average Gross Rental Rates (* Projected) Class A Vacancy Vs Rates

22.5%

$45.28 19.9% $45.00 20.0% $43.54 $42.52 18.1% $41.86 17.5% $39.87 $40.00

$37.91 14.5% 15.0% 14.1% $37.31 13.1% 13.3%

12.5% Rental Rate ($) $34.95 12.5% 11.6% $35.00 $33.62 10.8% 10.5% 10.4% 9.7% 10.0% $31.41 $31.80 $31.38 $31.20 9.2% 8.8% $30.27 $29.41 7.9% Vacancy (%) Vacancy 7.5% 7.6% $30.00 7.5% 7.1% $27.80 $26.57 $26.13 5.0% $25.00

2.5%

0.0% $20.00 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Year End *2016 *2017 *2018 *2019 2015 Year Class A Vacancy % Class A Rental Rates (Gross)

broderickgroup.com | pg. 10 Seattle Office Market Overview Appendix Year End 2015 Detailed Charts & Graphs

Seattle Office Class A Absorption Seattle Class A Office Absorption Trends Net Absorption (* Projected) 2002-2019

3,400,000 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Year End 2015 *2016 *2017 *2018 *2019 3,200,000

3,000,000

2,800,000

2,600,000

2,400,000

2,200,000

2,000,000 1,950,000 1,888,918 1,888,918 1,800,000 1,593,283 1,593,283

1,600,000 1,537,765 1,490,442 1,490,442 1,400,000 1,205,000 1,205,000 1,200,000 1,178,488 1,029,132 1,029,132 994,359 994,359 1,000,000 969,059 800,712 800,712 800,000 Square Feet (SF) 625,441 625,441 600,000

400,000 376,601 273,337 273,337 129,859 129,859 200,000 124,752

0

(200,000)

(400,000) (119,506) (600,000)

(800,000) (644,971)

broderickgroup.com | pg. 11 Seattle Office Market Overview Appendix Year End 2015 Detailed Charts & Graphs

Seattle Class A OfficeSeattle Office Class A Market Vacancy by submarketVacancy Percentage by Submarket

5.6% 3.4% Lake Union 6.0% 9.0%

4.7% 7.8% Denny Regrade 8.0% 7.3%

11.6% 9.2% Waterfront 6.0% 5.5%

11.9% 10.5% Seattle CBD 9.8% 8.3%

3.5% 3.5% Pioneer Square 4.1% 3.6%

2.0% 2.2% Fremont/University 2.2% 1.9%

9.3% 8.2% Overall Class A 7.8% 7.6%

0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% Q1 2015 Q2 2015 Q3 2015 Q4 2015

broderickgroup.com | pg. 12 Seattle Office Market Overview Appendix Year End 2015 Detailed Charts & Graphs

Seattle Office Class A Market Average Gross Rental Rates by Submarket

Class A Year End Direct Rental Rates (Gross)

Lake Union Denny Regrade Waterfront Seattle CBD Pioneer Square Fremont/Univ Overall Class A

$39.87

$36.16

$35.29

$40.07

$34.40

$32.88

$37.80

$25.00 $26.00 $27.00 $28.00 $29.00 $30.00 $31.00 $32.00 $33.00 $34.00 $35.00 $36.00 $37.00 $38.00 $39.00 $40.00 $41.00

broderickgroup.com | pg. 13 Seattle Class A Year to Date Net Absorption by Submarket

Fremont/Univ 31,786 3% Pioneer Square 32,160 3%

Lake Union 128,837 14%

Denny Regrade 110,179 12% Lake Union Denny Regrade Waterfront Seattle CBD Waterfront 116,638 12% Seattle CBD 522,017 56% Pioneer Square Fremont/Univ

Seattle Office Market Overview Appendix Year End 2015 Detailed Charts & Graphs Seattle Class A Year to Date Net Absorption by Submarket

Seattle Office Class A Absorption Year-to-Date Absorption Trends by Submarket

Fremont/Univ 31,786 3% 1,000,000 Class A Net Absorption YTD Pioneer Square 32,160 3% 950,000 900,000 Lake Union 128,837 14% Overall Class A, 850,000 800,000 941,617 750,000 700,000 650,000 Denny Regrade 110,179 12% 600,000 Lake Union 550,000 Denny Regrade 500,000 450,000 Waterfront 400,000 Seattle CBD Waterfront350,000116,638 12% Seattle CBD 522,017 56% 300,000 Pioneer Square 250,000 Fremont/Univ 200,000 150,000 100,000 50,000 0

broderickgroup.com | pg. 14

1,000,000 Class A Net Absorption YTD 950,000 900,000 Overall Class A, 850,000 800,000 941,617 750,000 700,000 650,000 600,000 550,000 500,000 450,000 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 0 Seattle Office Market Overview Year End 2015

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