Eastside Office Market Overview Year End 2015

Commercial Real Estate Services 10500 NE 8th Street, Suite 900 | Bellevue broderickgroup.com Eastside Office Market Overview Year End 2015

EASTSIDE MARKET SUMMARY

While vacancy rates across the entire Eastside Office Market “treaded water” in 2015 (essentially unchanged at 10.75%), the year was other- wise positive from the aspect of pre-leasing in new construction.

The recent fears of an over-built Bellevue CBD have somewhat eased in the face of 1.5 million RSF under construction, and at a time when Expedia has announced it is vacating 465,000 RSF. While only 120,000 RSF of the new construction is pre-leased, we have seen a significant increase in activity with an additional 570,000 RSF of tenants consid- ering the new buildings. This is coupled with a strong possibility that Expedia may extend their leases in downtown Bellevue well past the new construction deliveries. Both of these recent occurrences have swung forecasts to seriously consider the possibility that new demand may absorb a much larger percentage of the pending delivery of supply in downtown Bellevue than had been previously estimated.

While the Bellevue CBD is hopefully regaining its footing, the suburban Eastside markets appear headed for strong increases in rental rates and potential competition for smaller spaces by tenants. This is expect- ed because those markets are experiencing very little new construction and post low vacancies, such as Kirkland’s 6.3% or I-90’s 8.1%.

Please visit broderickgroup.com for all available properties

Bellevue Office Seattle Office 10500 NE 8th Street, Suite 900 600 University Street, Suite 2220 Bellevue, Washington 98004 Seattle, Washington 98101 Main. 425.646.3444 Main. 206.838.5775 Fax. 425.646.3443 Fax. 206.838.7640

broderickgroup.com | pg. 2 Eastside Office Market Overview Year End 2015 EASTSIDE OFFICE MARKET SNAPSHOT

Entire Eastside Market Total SF: 33,697,920 Vacant SF: 3,622,706 Vacant %: 10.75% Entire Eastside Market Asking Rates: $31.80/SF, G Absorption YTD: (21,289) SF

Class A Buildings - Entire Eastside Market Total SF: 14,974,768 Vacant SF: 1,688,970 Class A Buildings Vacant %: 11.28% Asking Rates: $35.93/SF, G Absorption YTD: (167,993) SF

Class A CBD Class A CBD Total SF: 7,754,175 Vacant SF: 1,002,638 Vacant %: 12.93% Asking Rates: $40.39/SF, G Absorption YTD: (25,411) SF Class A+* Class A+ CBD * Total SF: 3,163,184 Vacant SF: 50,549 Vacant %: 1.60% Asking Rates: $46.49/SF, G Absorption YTD: 16,799 SF

* Bellevue Place, Civica Office Commons, The Bravern, City Center Plaza, Key Center, Lincoln Square broderickgroup.com | pg. 3 Eastside Office Market Overview Year End 2015

LEASING ACTIVITY Leasing activity in the 4th quarter was strong, with major leases such as Salesforce.com Q1 2015 - Q4 2015 NOTABLE EASTSIDE TRANSACTIONS (YTD) at 929 Building (85,000 RSF, moving the majority of their staff from Seattle to downtown Ref New / Renewal / Bellevue), as well as Tableau Software (92,000 RSF) and Wave Broadband (88,000 Building Submarket RSF Qtr Tenant Name # Expansion RSF), both preleases at Talon’s planned Kirkland Urban buildings (formerly known as Kirkland Park Place in downtown Kirkland). Additionally, approximately 570,000 RSF of Fourth Quarter 2015 tenants are considering the new construction in downtown Bellevue, increasing confi- Kirkland Urban North Kirkland 92,000 4th Tableau Software New dence in the ultimate success for all three new buildings. AAA of Washington recently One Newport I-90 Corridor 89,850 4th AAA of Washington New purchased One Newport (90,000 RSF), removing one of the few large remaining I-90 Kirkland UrbanRef Central Kirkland 88,000 4th Wave Broadband New / NewRenewal / Building Submarket RSF Qtr Tenant Name blocks from the market. # Expansion 929 Office TowerFirst Quarter 2015Bellevue CBD 84,794 4th salesforce.com New Overlake Medical1 Newport TowerSuburban I-90 34,830 1st T-Mobile Expansion If there is a complaint, it is that the Eastside lacks a “goliath” who will further drive 24,792 4th Eating Recovery Center New Pavillion 2 Key CenterBellevue Bellevue CBD 30,166 1st FM Global Renewal absorption. Microsoft has been that large tenant in past Eastside market cycles. Despite Willow Creek Corporate 3 One BellevueRedmond Center Bellevue CBD23,91729,6614th 1stTEKSystemSouthern Wine New New Center Suburban the absence of our goliath, the Eastside continues to diversify and prosper, but the lack 4 I-405 Corporate Center 27,366 1st Eagle Home Mortgage Renewal Eastgate Office Park I-90 CorridorBellevue 23,773 4th Seagull Scientific New of a large driver in our market will severely limit new construction in this cycle. Sunset Corporate 5 I-90 24,602 1st SolutionsStar New Twilight Center Campus SR-520 23,638 4th BluePrint Consulting New Redmond Technology Denali Advanced 6 Redmond 15,837 1st New Ref New / Renewal / Center Integration Building Submarket RSF Qtr Tenant Name Trulia Center Bellevue CBD 22,408 4th Lumedx Corporation Renewal # Expansion 7 Northstream Building Kirkland 14,507 1st Cardiac Dimensions Renewal Plaza Yarrow FourthBay Quarter 2014SR-520 17,599 4th American Tire New Second Quarter 2015 Third Quarter 2015 8 Northwest Tech Center Redmond 36,062 4th SpaceX New Redmond East Renewal/ Redmond 109,753 2nd Terex Volt Information Business Campus Expansion Sixty Acres 9 Key CenterRedmond Bellevue CBD67,07226,5003rd4th UBS RenewalRenewal Commons on 90 I-90 74,215 2nd REI New 10 400 Lincoln Square Bellevue CBD 25,316 4thSciencesPolpat, LLC New Redmond TechnologyBellevue Corporate Renewal/ 11 Redmond Bellevue CBD34,35024,7593rd4thPushpayJacobs Engineering Expansion Touchstone Kirkland Kirkland 33,096 2nd WB Games Renewal Center Plaza Expansion 12 Bellevue Place Bellevue CBD 19,319 4th Smartsheet Expansion Willows Commerce Bellevue Place Bellevue CBD 29,907 3rd Bank of America Renewal Redmond 28,265 2nd Labcorp New Lincoln Executive Renewal/ Park 13 I-90 18,319 4th CDM Smith Center Downsize Lincoln Executive Renewal/ 112th @ 12th Bellevue CBD 29,803 3rd Overlake Hospital New I-90 22,161 2nd Agilysys Third Quarter 2014 Center Expansion Willows Ridge Tech Renewal/Relocation/ 14 Key Center Bellevue CBD 243,429 3rd Concur Redmond East Redmond 28,199 3rd Xerox Expansion Redmond 20,506 2nd Data I/O New Center Downsize Business Campus 112th @ 12th 15 SammamishBellevue Park Place CBDI-90 23,515176,0003rd3rdAXIACostco Financial New New 112th @ 12th Bellevue CBD 20,276 2nd Audience Science New 16 Key Center Bellevue CBD 34,380 3rdMorganMerrill Lynch Stanley SmithRenewal Willow Creek Corporate Civica Office CommonsSunset CorporateBellevue CBD 23,222 3rd Renewal Redmond 17,457 2nd Everbank New 17 I-90 30,922 3rdBarneyHealthways, Financial Inc. Renewal Center Campus Bellevue Technology Suburban Key Center 18 Summit II BellevueOffice Park CBDBellevue CBD22,44923,2933rd3rdRegusLimeaid New Renewal 15,573 2nd Hitachi Consulting New Center Bellevue 19 Tower 333 Bellevue CBD 22,363 3rd Expedia Renewal Redmond Woods SR-520 20,458 3rd Spur Group Sublease 112th @ 12th Bellevue CBD 14,618 2nd Guidant Financial New 20 Plaza East Bellevue CBD 22,000 3rd Bernston Porter New 112th @ 12th Bellevue CBD 19,635 3rd Society Consulting Sublease/ New First Quarter 2015 21 Sterling Plaza I I-90 20,285 3rd Synology New Northcreek - Renewal/ 112th @ 12th 22 Bellevue CBDBothell 18,22220,2023rd3rdTierBanner 3 Bank Expansion Newport Tower I-90 34,830 1st T-Mobile Expansion Building D Expansion Redmond East23 Carillon Point Kirkland 19,679 3rd GoDaddy Expansion Key Center Bellevue CBD 30,166 1st FM Global Renewal Redmond 16,681 3rd Tech Mahindra New Business Campus24 Carillon Point Kirkland 18,572 3rd Taiyo Pacific Partners Renewal One Bellevue Center Bellevue CBD 29,661 1st Southern Wine New Windermere ServicesRenewal/ Plaza Yarrow Bay25 Plaza EastSR-520 Bellevue CBD14,35518,4593rd3rd Apptio Renewal Suburban Company Expansion I-405 Corporate Center 27,366 1st Eagle Home Mortgage Renewal Gateway 112 / Suburban Bellevue Bellevue Corporate26 18,222 3rd CW Title Company New Bellefield Bellevue CBDBellevue 14,339 3rd Dreambox New Sunset Corporate Northcreek - I-90 24,602 1st SolutionsStar New Plaza 27 Bothell 18,000 3rd Progressive Insurance Renewal Campus Building Q Expansion/ Redmond Technology Denali Advanced Bellevue Place28 Eastgate OfficeBellevue Park CBDI-90 13,51816,2773rd3rdInsightExponent Global Renewal Redmond 15,837 1st New Relocation Center Integration 29 Sterling Plaza I I-90 15,093 3rd f5 Networks Renewal

Northstream Building Kirkland 14,507 1st Cardiac Dimensions Renewal Transactions negotiated by Broderick Group

Transactions negotiated by Broderick Group

broderickgroup.com | pg. 4 Eastside Office Market Overview Year End 2015 Eastside Office Market Vacancy Percentage and Average Gross Rental Rates (* Projected) 18.0% $35.00 VACANCY RATES $33.15 $33.15 16.6% $32.13 $32.58 $32.45 $31.80 15.9% 16.0% 16.0% $30.59 $29.65 The overall Eastside vacancy of 10.75% is unimpressive. Downtown $28.32 $29.18 $30.00 $27.73 $28.31 14.4% $28.18 14.0%

Bellevue vacancy increased to 12.8% after enjoying sub 10% vacancies Average Gross Rental Rate ($) 12.7% 12.9% 12.2% $25.00 since year 2012. This jump was due to the 462,000 RSF that the 929 $23.11 $23.30 12.0% Building added to inventory at the end of the year. Once Salesforce and 10.4% 10.8% 10.2% 10.1% $20.00 10.0% 9.9% other pending leases record vacancy, this will reverse temporarily until 9.3% 9.4% the other two new buildings deliver at the end of 2016 and early 2017. 8.6% 8.0% $15.00 From that point, Bellevue CBD vacancies should remain high for at least

2016 and 2017. Conversely, the suburban markets are continuing to (%) Vacancy 6.0% $10.00 improve, posting low vacancies such as Kirkland (6.3%), I-90 (8.1%), 4.0% Redmond (7.4%) and Bellevue Suburban (9%). $5.00 2.0% RENTAL RATES: CURRENT & PROJECTED 0.0% $0.00 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 *2016 *2017 *2018 DOWNTOWN BELLEVUE: While there certainly are positive trends for Year Market Vacancy % Average Gross Rental Rate the new construction in downtown Bellevue, there is still a large amount Eastside Office Market Class A and B New Construction vs. Net Absorption Eastside Office Market of space to be absorbed. Increased competition among new and existing New Construction1996-2009 vs. Net Absorption, 2004 - 2018 buildings could push rental rates down over the course of 2016 in the New Construction Net Absorption (* Projected) Bellevue CBD. 1,963,995 If the current leasing activity in the CBD converts to actual leases, we

expect the new construction rental rates will hold. However, if those 1,636,059 1,650,000 leases do not record, and/or other demand does not surface, many land- 1,517,164 lords will drop rents in downtown Bellevue. Current starting rental rates for the new construction buildings range from $33-$41 NNN, depending 1,150,000 921,018 on the project, floor height, views, etc. Existing best in class product 876,341 810,000 800,000 791,606 has experienced similar rental rates ($32-$39 NNN). The new construc- 705,000

650,000 587,440 562,135 525,000 514,000 508,036 Square Feet (SF) 462,000 tion supply has brought a halt to increasing rents that were enjoyed by 437,189 418,303 366,185 (21,289) 303,848 303,376 248,285 240,898 downtown landlords the past four years, and the jury is still out whether 233,439 675,000 150,000 rents will actually decrease in 2016 as the competition increases with 43,972 0 0 0 0 0 0 the new deliveries.

(350,000)

Year

broderickgroup.com | pg. 5 Eastside Office Market Overview Eastside Office Market (Current) Vacancy Percentage by Submarket Year End 2015 Current Vacancy

Bellevue CBD 12.8% RENTAL RATES: CURRENT & PROJECTED Bellevue Suburban 9.0% (CONT.) SR-520 Corridor 10.6% SUBURBAN EASTSIDE MARKETS: With a vast I-90 Corridor discrepancy between rents and parking costs between 8.1% downtown Bellevue and the rest of the Eastside Kirkland 6.3% submarkets, the value driven tenants have been active in the Eastside suburbs. Redmond 7.4%

Bothell/Kenmore By way of example, at an I-90 Class A building, a tenant 14.9% can achieve a starting rent of $33/SF, fully serviced Mercer Island 9.2% (inclusive of operating expenses), and annual parking costs range from free to $3 per RSF, per year. In a 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 2015 YEAREND downtown Bellevue Class A building, starting rents can be $47/SF, fully serviced (including operating expenses that average approximately $2.00 per RSF more 30.0% Eastside Office Market (Historical) than suburban buildings), and parking costs can add Vacancy Percentage by Submarket, 2008 - 2015 approximately $7.25 per RSF (if the employer is paying for parking). The total annual cost difference can be 25.0% $21.00 per RSF, per year (or rental costs that are as much as 64% higher annually in downtown Bellevue 20.0% compared to an I-90 Class A office building four miles to the south). 15.0% Before this cycle, such a discrepancy has never existed between downtown Bellevue and Eastside suburban 10.0% markets. It is reasonable to forecast 10% increases to rates for the suburban markets during the course of 2016, given the very low vacancy rates and very little 5.0% new construction in suburban markets.

0.0% Bellevue CBD Bellevue Suburban SR-520 Corridor I-90 Corridor Kirkland Redmond Bothell/Kenmore Mercer Island 2009 2010 2011 2012 2013 2014 2015

broderickgroup.com | pg. 6 Eastside Office Market Overview Year End 2015 Eastside Sale Comparables Eastside Comps- Q42015 Fourth Quarter 2015

PRICING MATRIX SALE PERCENT APPROX. SQUARE INITIAL PRICE PROPERTY BUYER SELLER DATE LEASED SALES PRICE FEET CAP RATE PER SF 1 Tri-State Building Fana Corporation Tom Agostino 12/2015 100% $21,500,000 26,587 N/A $809

21 Crown Pointe TA Realty Steelwave 10/2015 92% $35,925,000 130,000 N/A $276

32 Bellevue Gateway 405 SanMar Corporation Walton Street Capital 9/2015 63% $9,875,000 34,703 N/A $285

INVESTMENT SALES SUMMARY The majority of the Eastside investment sale activity Eastgate Office Park will be on the market mid-January 2015. buyers will pay premium prices for small, older suburban occurred in the suburban markets, as almost all of the Both are quality suburban office parks, with significant upside in product with potential rent upside. downtown core has already traded hands this cycle. rents given the I-90 tight vacancy rate of 8.1% and no new prod- • One Newport, on I-90, is scheduled to close January 28, Currently, the only prime downtown asset that is being uct coming to market in the coming years. 2016 at a price of approximately $330 per RSF. AAA of marketed for sale is Symetra Center, which is under • Walton Street decided they were better off selling the Gate- Washington is the buyer and will occupy the majority of the contract and scheduled to close this quarter. That would way buildings individually rather than packaged. Sanmar building. They will sell or lease Bellefield Office Park, their leave Walton Street with Trulia Center as their last remain- purchased the multi-tenant office building Bellevue Gate- current building. ing Eastside asset following their large Archon debt acqui- way 405 at a price of $285 per RSF, adding to their invest- • Fana Corporation purchased the Tri-State Building for sition in 2011. ment holdings along the 405 Corridor. $21,500,000, a healthy $809 per SF price on the land. Fana • Crown Pointe, on SR-520, was sold by Steelwave (formerly has submitted permitting requests to the City of Bellevue Suburban Class A properties that may trade are two Legacy) to TA Associates for $276 per RSF. for two high rise residential towers on that site, including Beacon Capital properties, Sunset North and Eastgate • Eastgate Corporate Center, on I-90, is being purchased a hotel. They also own the adjoining site through a prior Office Park. Sunset North may go into contract shortly and by an investor for $339 per foot, demonstrating that smaller purchase.

Bellevue Gateway 405 Crown Pointe Eastgate Corporate Center One Newport Tri-State Building

broderickgroup.com | pg. 7 Eastside Office Market Overview Year End 2015

Eastside New Developments NEW CONSTRUCTION Current & Planned New Developments for the Eastside New Office Development Projects Square Scheduled As referenced previously, the Eastside is experiencing Project Name Class Submarket Developer % Pre-Leased SF Leased Footage Completion Date steady leasing, but lacks a goliath, such as Amazon or Microsoft, seeking large blocks of space. As a result, Under Construction many planned projects will remain on the shelf through Google/Kirkland A Kirkland 160,000 SRM Jan-16 100% 160,000 this cycle. In the last construction boom (2005-2009), the Centre 425 A Bellevue CBD 354,000 Schnitzer West Dec-16 0% 0 Eastside added 4.7 million SF. 400 Lincoln Square A Bellevue CBD 710,000 Kemper Development Nov-16 4% 25,000 With Microsoft growth outside of their owned campus Planned Projects absent, the Eastside will add approximately 2.5 million SF Spring District - Phase I in this cycle. This number will change if Microsoft chooses A Bellevue Suburban 325,000 Wright Runstad 2017 0% 0 Block 16 to join the speculative leasing market again, an unlikely expectation at this time. Spring District - GIX A Bellevue Suburban 100,000 Wright Runstad 2017 100% 100,000 Kirkland Urban North A Kirkland 190,000 Talon 2018 48% 91,906 The 2.5 million SF of construction is mostly contained to Kirkland Urban Central A Kirkland 190,000 Talon 2018 46% 87,564 retail / amenity rich areas such as downtown Bellevue. There, the recently delivered 929 Building (462,000 RSF) The other submarket seeing development is downtown District may also land other pre-leases from large tenants will be followed by Schnitzer’s 425 Centre (354,000 RSF) Kirkland. In Kirkland, Talon has found great pre-leasing due to the tight suburban market and the success of the and Kemper Development’s 400 Lincoln Square (710,000 success with their two planned office buildings at Kirkland already announced 100,000 RSF pre-lease by Global RSF), both set to deliver end of 2016 to early 2017. Park Place (now called Kirkland Urban), which are both Innovation Exchange (GIX), a partnership between UW, approximately 47% pre-leased. It is very likely the Spring Tsinghua University in China, and Microsoft.

Nine Two Nine Centre 425 400 Lincoln Square Kirkland Urban North Kirkland Urban Central

broderickgroup.com | pg. 8 Eastside Office Market Overview Year End 2015 Bellevue New Developments Aerial of Current & Planned New Developments in Bellevue Nine Two Nine

400 Lincoln Square

Lake Washington

Centre 425 Lincoln Square Centre 425 Expansion

Summit III Summit III The Spring District Phase I

Downtown Bellevue

The Spring District

Nine Two Nine Office Tower

broderickgroup.com | pg. 9 Eastside Office Market Overview Eastside Office Market Overview Year End 2015 Eastside OfficeHistorical Market Summary Class 2004A and - YearB End 2015 2004-2018 Forecast 2016 - 2018 Net EASTSIDE MARKET FORECAST Avg. Gross Year-End New Vacant Square Vacancy Annual Year Absorption Rental Rate Inventory Construction Feet Rate Growth (Year to Date) With significant new construction still to be delivered, Eastside developers 2004 $23.11 28,251,925 0 4,687,467 437,189 16.6% 1.5% are fortunate that the economy continues to be strong and steady job 2005 $23.30 28,492,823 240,898 2,964,370 1,963,995 10.4% 6.9% growth numbers appear in place for 2016. 2016 will certainly be pivotal for downtown Bellevue. Will 570,000 SF of current demand actually sign 2006 $27.73 28,536,795 43,972 2,446,207 562,135 8.6% 2.0% leases for new space? Will there be another 850,000 SF of demand that 2007 $32.13 29,413,136 876,341 2,735,108 587,440 9.3% 2.0% will surface over the next two years to make those projects already under 2008 $32.58 31,049,195 1,636,059 3,952,864 418,303 12.7% 1.3% construction successful? Our answers to those questions depend on the 2009 $28.31 32,566,359 1,517,164 5,166,480 303,848 15.9% 0.9% direction of our local and national economies. 2010 $28.32 32,932,544 366,185 5,284,380 248,285 16.0% 0.8% As we have learned from the past, there is significant reason to remain 2011 $28.18 33,235,920 303,376 4,801,910 791,606 14.4% 2.4% cautious as we enter the 7th year of an economic expansion. These 2012 $29.18 33,235,920 0 4,293,874 508,036 12.9% 1.5% cycles don’t last forever and when they do change, the turn is usually sudden. However, our projections for 2016 have the suburban markets 2013 $29.65 33,235,920 0 4,060,435 233,439 12.2% 0.7% enjoying their best year since 2007 due to exceptional rental rate growth 2014 $30.59 33,235,920 0 3,139,417 921,018 9.4% 2.8% and continuing declining vacancies. 2015 $31.80 33,697,920 462,000 3,622,706 (21,289) 10.8% -0.1% Yearend Projected - End of Year Lack of large suburban blocks of space will continue to help push growing tenants towards downtown Bellevue. The downtown Bellevue new devel- 2016 $32.45 34,211,920 514,000 3,461,706 675,000 10.1% 2.0% opment projects are delivering highly desirable quality office product; the 2017 $33.15 35,021,920 810,000 3,471,706 800,000 9.9% 2.3% first since 2008. Tech tenants, in particular, seek the absolute best office 2018 $33.15 35,726,920 705,000 3,651,706 525,000 10.2% 1.5% choices to compete for expensive employee talent and the new develop- Total New Average Total Net Average Average Projected 2015-2018 ment projects downtown will continue to see interest from tenants relocat- Construction Vacant SF Absorption Vacancy Growth ing from Seattle and Eastside suburban markets. 2016 is headed towards 2,029,000 3,528,373 2,000,000 10.1% 1.9% a successful outcome for area landlords and developers, while tenants Notes: will finally have a better selection of new product. 1 Quarter end inventory, Eastside (including Issaquah/Coal Creek), Class A&B office, 10,000 SF and greater buildings (CoStar). Excludes owner/user buildings 2 Vacant square feet and total absorption statistics provided by CoStar. Includes direct and sublease space. 3 New supply 2015-2018 is product of known projects and estimated probability of completion/financing based on average vacancy of 2 years (BGI) 4 All data are from end of the year specified. 5 Annual growth is net absorption divided by inventory. 6 Data from January 6, 2016 (Year End).

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

Eastside Office Market Vacancy Percentage and Average Gross Rental Rates (* Projected)

18.0% $35.00 16.6% $33.15 $33.15 $32.13 $32.58 $32.45 $31.80 15.9% 16.0% 16.0% $30.59 $29.65 $28.32 $29.18 $30.00 $27.73 $28.31 14.4% $28.18 14.0% 12.7% 12.9% 12.2% $25.00 $23.11 $23.30 12.0% Average Gross Rental Rate ($) 10.4% 10.8% 10.2% 10.1% $20.00 10.0% 9.9% 9.3% 9.4% 8.6%

8.0% $15.00 Vacancy (%) Vacancy

6.0% $10.00

4.0%

$5.00 2.0%

0.0% $0.00 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 *2016 *2017 *2018 Market Vacancy % Average Gross Rental Rate

Year

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

Eastside Office Market Class A and B Eastside Office Market New Construction vs. Net Absorption New Construction vs. Net Absorption, 2004 - 2018 1996-2009 (* Projected)

New Construction Net Absorption 1,963,995 1,636,059 1,650,000 1,517,164

1,150,000 921,018 876,341 810,000 800,000 791,606 705,000

650,000 587,440 562,135 525,000 514,000 508,036 Square Feet (SF) 462,000 437,189 418,303 366,185 (21,289) 303,848 303,376 248,285 240,898 233,439 675,000 150,000 43,972 0 0 0 0 0 0

(350,000)

Year

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

Eastside Office Market (Current) Vacancy Percentage by Submarket Current Vacancy

Bellevue CBD 12.8%

Bellevue Suburban 9.0%

SR-520 Corridor 10.6%

I-90 Corridor 8.1%

Kirkland 6.3%

Redmond 7.4%

Bothell/Kenmore 14.9%

Mercer Island 9.2%

0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 2015 YEAREND

broderickgroup.com | pg. 13 Eastside Office Market Overview Appendix Year End 2015 Detailed Charts & Graphs

Eastside Office Market (Historical) Vacancy Percentage by Submarket, 2008 - 2015

30.0%

25.0%

20.0%

15.0%

10.0%

5.0%

0.0% Bellevue CBD Bellevue Suburban SR-520 Corridor I-90 Corridor Kirkland Redmond Bothell/Kenmore Mercer Island 2009 2010 2011 2012 2013 2014 2015

broderickgroup.com | pg. 14 Eastside Office Market Overview Appendix Year End 2015 Detailed Charts & Graphs

Eastside Office Market Contiguous Blocks of Space

100,000+ SF

Number of Buildings with Contiguous Blocks of 50,000 - 99,999 SF Available Space in Each Square Foot Category 20,000 - 49,999 SF 10,000 - 19,999 SF 1 - 2,499 SF 2,500 - 4,999 SF 5,000 - 9,999 SF

11 165 113 107 65 25 8

112th @ 12th / 112th @ 12th / 90 East / West Building South Building Building C

112th @ 12th / Bravern I 929 Sammamish Park Monte Villa Farms / East Building Building Place / Building B 3303 Building

SUBMARKET: Bellevue CBD Coal Creek/Issaquah Bothell

Number of Available Spaces 1 - 2,499 2,500 - 4,999 5,000 - 9,999 10,000 - 19,999 20,000 - 49,999 50,000 - 99,999 100,000 +

broderickgroup.com | pg. 15 Eastside Submarket Overview 2004 - 2015

BELLEVUE CBD EVERETT Avg. Gross Year End New Vacant Square Annual Year Net Absorption Vacancy Rate Rental Rate Inventory Construction Feet Growth Appendix 2004 $29.09 5,755,954 0 972,509 264,490 16.9% 4.6% Detailed Charts & Graphs 2005 $28.35 5,996,852 240,898 566,999 646,408 9.5% 10.8%

2006 $32.54 5,996,852 0 308,124 258,875 5.1% 4.3% SNOHOMISH 2007 $38.12 6,536,852 540,000 443,867 404,257 6.8% 6.2% 2008 $39.36 6,951,816 414,964 726,094 132,737 10.4% 1.9% Eastside Submarket Historical Overview 2009 $34.38 8,282,995 1,331,179 1,104,113 953,160 13.3% 11.5% 2010 $32.86 8,282,995 0 1,214,486 (110,373) 14.7% -1.3% 2004 - Present 2011 $32.15 8,282,995 0 1,113,182 101,304 13.4% 1.2% 2012 $34.91 8,282,995 0 767,717 345,465 9.2% 4.3% LYNNWOOD 2013 $36.47 8,282,995 0 660,398 107,319 8.0% 1.2% 2014 $38.24 8,282,995 0 651,950 8,448 7.9% 0.1% 2015 $39.71 8,744,995 462,000 1,120,038 (6,088) 12.8% -0.1% BOTHELL Year End SHORELINE BELLEVUE SUBURBAN Avg. Gross Year End New Vacant Square Annual Year Net Absorption Vacancy Rate PUGET SOUND Rental Rate Inventory Construction Feet Growth 2004 $19.77 4,012,857 0 406,573 92,787 10.2% 2.2%

2005 $21.59 4,012,857 0 259,748 146,825 6.5% 3.7% LAKE KIRKLAND REDMOND 2006 $25.50 4,046,655 33,798 375,072 (81,526) 9.2% -1.9% WASHINGTON 2007 $30.30 4,046,655 0 345,303 29,769 8.5% 0.7% BAINBRIDGE 520 CORRIDOR 2008 $30.72 4,090,195 43,540 389,936 (1,093) 9.5% 0.0% ISLAND

2009 $26.91 4,107,937 17,742 471,562 (63,884) 11.5% -1.6% BELLEVUE 2010 4,151,937 44,000 488,531 27,031 11.7% 0.6% SEATTLE CBD $29.60 ELLIOT BAY BELLEVUE 2011 $29.47 4,341,937 190,000 736,383 (57,852) 16.9% -1.3% SUBURBAN SAMMAMISH LAKE 2012 $31.41 4,341,937 0 715,149 21,234 16.4% 0.5% SAMMAMISH 2013 $30.87 4,341,937 0 581,507 133,642 13.4% 3.0% MERCER ISLAND 2014 $32.03 4,341,937 0 519,929 61,578 12.0% 1.4% I-90 2015 CORRIDOR $32.75 4,769,689 427,752 427,752 92,177 9.0% 1.9% Year End ISSAQUAH SR-520 CORRIDOR Avg. Gross Year End New Vacant Square Annual RENTON Year Net Absorption Vacancy Rate Rental Rate Inventory Construction Feet Growth TUKWILA 2004 $17.76 3,298,776 0 559,504 125,962 17.0% 3.8%

2005 $20.52 3,298,776 0 461,222 98,282 14.0% 3.0% SEATAC 2006 $23.32 3,298,776 0 317,953 143,269 9.6% 4.3% 2007 $28.10 3,298,776 0 139,312 178,641 4.2% 5.4% 2008 $28.56 3,298,776 0 307,169 (167,857) 9.3% -5.1% KENT 2009 $25.94 3,298,776 0 499,646 (192,477) 15.1% -5.8% 2010 $24.73 3,298,776 0 596,157 (96,511) 18.1% -2.9% 2011 $24.95 3,298,776 0 510,909 85,248 15.5% 2.6% 2012 $25.67 3,298,776 0 432,001 78,908 13.1% 2.4% 2013 $25.52 3,298,776 0 299,888 132,113 9.1% 4.0% 2014 $28.24 3,298,776 0 336,865 (36,977) 10.2% -1.1% 2015 $30.29 3,298,776 0 350,178 (13,313) 10.6% -0.4% Year End I-90 CORRIDOR Avg. Gross Year End New Vacant Square Annual Year Net Absorption Vacancy Rate Rental Rate Inventory Construction Feet Growth broderickgroup.com | pg. 16 2004 $21.82 3,940,481 0 556,222 121,714 14.1% 3.1% 2005 $23.22 3,940,481 0 357,584 198,638 9.1% 5.0% 2006 $30.01 3,940,481 0 230,491 127,093 5.8% 3.2% 2007 $34.60 3,940,481 0 265,017 (34,526) 6.7% -0.9% 2008 $35.50 4,576,803 636,322 690,460 210,879 15.1% 4.6% 2009 $31.04 4,576,803 0 775,582 (85,122) 17.0% -1.9% 2010 $30.37 4,742,123 165,320 771,320 169,582 16.2% 3.6% 2011 $29.78 4,742,123 0 532,991 238,329 11.2% 5.0% 2012 $29.77 4,742,123 0 610,165 (77,174) 12.9% -1.6% 2013 $30.27 4,742,123 0 829,114 (218,949) 17.5% -4.6% 2014 $30.29 4,742,123 0 520,607 308,507 11.0% 6.5% 2015 $31.38 4,742,123 0 386,322 134,285 8.1% 2.8% Year End Eastside Submarket Overview 2004 - 2015

BELLEVUE CBD Avg. Gross Year End New Vacant Square Annual Year Net Absorption Vacancy Rate Rental Rate Inventory Construction Feet Growth 2004 $29.09 5,755,954 0 972,509 264,490 16.9% 4.6% 2005 $28.35 5,996,852 240,898 566,999 646,408 9.5% 10.8% 2006 $32.54 5,996,852 0 308,124 258,875 5.1% 4.3% 2007 $38.12 6,536,852 540,000 443,867 404,257 6.8% 6.2% 2008 $39.36 6,951,816 414,964 726,094 132,737 10.4% 1.9% 2009 $34.38 8,282,995 1,331,179 1,104,113 953,160 13.3% 11.5% 2010 $32.86 8,282,995 0 1,214,486 (110,373) 14.7% -1.3% 2011 $32.15 8,282,995 0 1,113,182 101,304 13.4% 1.2% 2012 $34.91 8,282,995 0 767,717 345,465 9.2% 4.3% 2013 $36.47 8,282,995 0 660,398 107,319 8.0% 1.2% 2014 $38.24 8,282,995 0 651,950 8,448 7.9% 0.1% 2015 $39.71 8,744,995 462,000 1,120,038 (6,088) 12.8% -0.1% Year End BELLEVUE SUBURBAN Avg. Gross Year End New Vacant Square Annual Year Net Absorption Vacancy Rate Rental Rate Inventory Construction Feet Growth 2004 $19.77 4,012,857 0 406,573 92,787 10.2% 2.2% 2005 $21.59 4,012,857 0 259,748 146,825 6.5% 3.7% 2006 $25.50 4,046,655 33,798 375,072 (81,526) 9.2% -1.9% 2007 $30.30 4,046,655 0 345,303 29,769 8.5% 0.7% 2008 $30.72 4,090,195 43,540 389,936 (1,093) 9.5% 0.0% 2009 $26.91 4,107,937 17,742 471,562 (63,884) 11.5% -1.6% 2010 $29.60 4,151,937 44,000 488,531 27,031 11.7% 0.6% 2011 $29.47 4,341,937 190,000 736,383 (57,852) 16.9% -1.3% 2012 $31.41 4,341,937 0 715,149 21,234 16.4% 0.5% 2013 $30.87 4,341,937 0 581,507 133,642 13.4% 3.0% 2014 $32.03 4,341,937 0 519,929 61,578 12.0% 1.4% 2015 $32.75 4,769,689 427,752 427,752 92,177 9.0% 1.9% Year End SR-520 CORRIDOR Avg. Gross Year End New Vacant Square Annual Year Net Absorption Vacancy Rate Rental Rate Inventory Construction Feet Growth 2004 $17.76 3,298,776 0 559,504 125,962 17.0% 3.8% 2005 $20.52 3,298,776 0 461,222 98,282 14.0% 3.0% 2006 $23.32 3,298,776 0 317,953 143,269 9.6% 4.3% 2007 $28.10 3,298,776 0 139,312 178,641 4.2% 5.4% 2008 $28.56 3,298,776 0 307,169 (167,857) 9.3% -5.1% 2009 $25.94 3,298,776 0 499,646 (192,477) 15.1% -5.8% 2010 $24.73 3,298,776 0 596,157 (96,511) 18.1% -2.9% 2011 $24.95 3,298,776 0 510,909 85,248 15.5% 2.6% 2012 $25.67 3,298,776 0 432,001 78,908 13.1% 2.4% 2013 $25.52 3,298,776 0 299,888 132,113 9.1% 4.0% 2014 $28.24 3,298,776 0 336,865 (36,977) 10.2% -1.1% 2015 $30.29 3,298,776 0 350,178 (13,313) 10.6% -0.4% Year End I-90 CORRIDOR EVERETT Avg. Gross Year End New Vacant Square Annual Year Net Absorption Vacancy Rate Rental Rate Inventory Construction Feet Growth Appendix 2004 $21.82 3,940,481 0 556,222 121,714 14.1% 3.1% Detailed Charts & Graphs 2005 $23.22 3,940,481 0 357,584 198,638 9.1% 5.0% 2006 3,940,481 0 230,491 127,093 5.8% 3.2% $30.01 SNOHOMISH 2007 $34.60 3,940,481 0 265,017 (34,526) 6.7% -0.9% 2008 $35.50 4,576,803 636,322 690,460 210,879 15.1% 4.6% Eastside Submarket Historical Overview 2009 $31.04 4,576,803 0 775,582 (85,122) 17.0% -1.9% 2010 $30.37 4,742,123 165,320 771,320 169,582 16.2% 3.6% 2004 - Present 2011 $29.78 4,742,123 0 532,991 238,329 11.2% 5.0% 2012 $29.77 4,742,123 0 610,165 (77,174) 12.9% -1.6% LYNNWOOD 2013 $30.27 4,742,123 0 829,114 (218,949) 17.5% -4.6% Eastside Submarket Overview 2014 $30.29 4,742,123 0 520,607 308,507 11.0% 6.5% 2015 2004 - 2015 $31.38 4,742,123 0 386,322 134,285 8.1% 2.8% BOTHELL Year End SHORELINE KIRKLAND Avg. Gross Year End New Vacant Square Annual Year Net Absorption Vacancy Rate PUGET SOUND Rental Rate Inventory Construction Feet Growth 2004 $22.60 2,696,431 0 332,756 29,310 12.8% 4.2%

2005 $25.80 2,696,431 0 196,777 135,979 7.3% 5.5% LAKE KIRKLAND REDMOND 2006 $29.24 2,696,431 0 304,656 (107,879) 11.0% -3.7% WASHINGTON 2007 $31.77 2,696,431 0 232,770 71,886 7.3% 3.7% BAINBRIDGE 520 CORRIDOR 2008 $33.44 2,965,381 268,950 442,454 59,266 13.3% 0.6% ISLAND

2009 $27.67 3,028,347 62,966 665,956 (160,536) 19.0% -4.3% BELLEVUE 2010 3,028,347 0 545,129 120,827 19.1% -0.1% SEATTLE CBD $28.51 ELLIOT BAY BELLEVUE 2011 $26.98 3,028,347 0 384,379 160,750 14.0% 5.1% SUBURBAN SAMMAMISH LAKE 2012 $27.10 3,028,347 0 324,931 59,448 12.2% 1.8% SAMMAMISH 2013 $30.22 3,028,347 0 247,761 77,170 10.7% 1.6% MERCER ISLAND 2014 $28.10 3,028,347 0 232,550 15,211 7.7% 0.5% I-90 2015 CORRIDOR $29.67 3,028,347 0 191,794 40,756 6.3% 1.3% Year End ISSAQUAH REDMOND Avg. Gross Year End New Vacant Square Annual RENTON Year Net Absorption Vacancy Rate Rental Rate Inventory Construction Feet Growth TUKWILA 2004 $18.30 3,432,777 0 972,979 (248,385) 25.4% -7.8%

2005 $18.27 3,432,777 0 556,776 416,203 15.3% 10.1% SEATAC 2006 $20.32 3,442,951 10,174 352,148 214,802 11.0% 4.5% 2007 $28.09 3,442,951 0 264,054 88,094 8.3% 2.8% 2008 $29.71 3,650,210 207,259 403,782 67,531 11.9% 2.0% KENT 2009 $25.98 3,650,210 0 725,117 (321,335) 21.3% -9.5% 2010 $25.91 3,734,769 84,559 624,533 185,143 17.9% 5.3% 2011 $27.04 3,777,009 42,240 594,722 77,811 16.9% 2.2% 2012 $25.37 3,777,009 0 568,995 25,727 16.1% 0.7% 2013 $25.35 3,777,009 0 511,068 57,927 14.5% 1.6% 2014 $25.23 3,777,009 0 388,132 122,936 10.3% 3.3% 2015 $26.26 3,777,009 0 278,717 109,415 7.4% 2.9% Year End BOTHELL Avg. Gross Year End New Vacant Square Annual Year Net Absorption Vacancy Rate Rental Rate Inventory Construction Feet Growth broderickgroup.com | pg. 17 2004 $21.40 2,857,784 0 761,419 48,189 23.7% 2.0% 2005 $21.35 2,857,784 0 527,590 233,829 15.6% 8.1% 2006 $24.52 2,857,784 0 502,556 24,434 16.6% -1.0% 2007 $25.42 3,166,725 308,941 920,162 (108,665) 29.2% -4.6% 2008 $25.87 3,215,846 49,121 923,662 46,021 30.9% -0.6% 2009 $23.75 3,321,123 105,277 772,035 256,904 25.4% 7.7% 2010 $23.50 3,321,123 0 739,517 32,518 23.9% 1.5% 2011 $22.52 3,321,123 0 581,509 158,008 17.6% 6.3% 2012 $23.24 3,321,123 0 635,778 (54,269) 19.3% -1.7% 2013 $23.49 3,321,123 0 562,482 73,296 17.4% 1.9% 2014 $24.36 3,321,123 0 317,980 244,502 9.6% 7.4% 2015 $25.65 3,321,123 0 496,494 (178,514) 14.9% -5.4% Year End MERCER ISLAND Avg. Gross Year End New Vacant Square Annual Year Net Absorption Vacancy Rate Rental Rate Inventory Construction Feet Growth 2004 $25.89 482,390 0 15,098 17,183 3.1% 3.6% 2005 $26.09 482,390 0 3,281 11,817 0.7% 2.4% 2006 $27.28 497,390 15,000 3,241 40 0.7% 3.0% 2007 $31.53 497,390 0 21,465 (18,224) 4.3% -3.7% 2008 $34.20 497,390 0 28,377 (6,912) 5.7% -1.4% 2009 $29.71 497,390 0 39,866 (11,489) 9.9% -4.2% 2010 $28.26 497,390 0 53,564 (13,698) 11.2% -1.3% 2011 $29.66 497,390 0 42,886 10,678 9.5% 1.7% 2012 $32.28 497,390 0 30,183 12,703 6.1% 3.4% 2013 $32.72 497,390 0 29,438 745 5.9% 0.1% 2014 $35.55 497,390 0 39,304 (9,866) 7.9% -2.0% 2015 $33.38 497,390 0 45,939 (6,635) 9.2% -1.3% Year End Eastside Submarket Overview 2004 - 2015

KIRKLAND Avg. Gross Year End New Vacant Square Annual Year Net Absorption Vacancy Rate Rental Rate Inventory Construction Feet Growth 2004 $22.60 2,696,431 0 332,756 29,310 12.8% 4.2% 2005 $25.80 2,696,431 0 196,777 135,979 7.3% 5.5% 2006 $29.24 2,696,431 0 304,656 (107,879) 11.0% -3.7% 2007 $31.77 2,696,431 0 232,770 71,886 7.3% 3.7% 2008 $33.44 2,965,381 268,950 442,454 59,266 13.3% 0.6% 2009 $27.67 3,028,347 62,966 665,956 (160,536) 19.0% -4.3% 2010 $28.51 3,028,347 0 545,129 120,827 19.1% -0.1% 2011 $26.98 3,028,347 0 384,379 160,750 14.0% 5.1% 2012 $27.10 3,028,347 0 324,931 59,448 12.2% 1.8% 2013 $30.22 3,028,347 0 247,761 77,170 10.7% 1.6% 2014 $28.10 3,028,347 0 232,550 15,211 7.7% 0.5% 2015 $29.67 3,028,347 0 191,794 40,756 6.3% 1.3% Year End REDMOND Avg. Gross Year End New Vacant Square Annual Year Net Absorption Vacancy Rate Rental Rate Inventory Construction Feet Growth 2004 $18.30 3,432,777 0 972,979 (248,385) 25.4% -7.8% 2005 $18.27 3,432,777 0 556,776 416,203 15.3% 10.1% 2006 $20.32 3,442,951 10,174 352,148 214,802 11.0% 4.5% 2007 $28.09 3,442,951 0 264,054 88,094 8.3% 2.8% 2008 $29.71 3,650,210 207,259 403,782 67,531 11.9% 2.0% 2009 $25.98 3,650,210 0 725,117 (321,335) 21.3% -9.5% 2010 $25.91 3,734,769 84,559 624,533 185,143 17.9% 5.3% 2011 $27.04 3,777,009 42,240 594,722 77,811 16.9% 2.2% 2012 $25.37 3,777,009 0 568,995 25,727 16.1% 0.7% 2013 $25.35 3,777,009 0 511,068 57,927 14.5% 1.6% 2014 $25.23 3,777,009 0 388,132 122,936 10.3% 3.3% 2015 $26.26 3,777,009 0 278,717 109,415 7.4% 2.9% Year End BOTHELL EVERETT Avg. Gross Year End New Vacant Square Annual Year Net Absorption Vacancy Rate Rental Rate Inventory Construction Feet Growth Appendix 2004 $21.40 2,857,784 0 761,419 48,189 23.7% 2.0% Detailed Charts & Graphs 2005 $21.35 2,857,784 0 527,590 233,829 15.6% 8.1%

2006 $24.52 2,857,784 0 502,556 24,434 16.6% -1.0% SNOHOMISH 2007 $25.42 3,166,725 308,941 920,162 (108,665) 29.2% -4.6% 2008 $25.87 3,215,846 49,121 923,662 46,021 30.9% -0.6% Eastside Submarket Historical Overview 2009 $23.75 3,321,123 105,277 772,035 256,904 25.4% 7.7% 2010 $23.50 3,321,123 0 739,517 32,518 23.9% 1.5% 2004 - Present 2011 $22.52 3,321,123 0 581,509 158,008 17.6% 6.3% 2012 $23.24 3,321,123 0 635,778 (54,269) 19.3% -1.7% LYNNWOOD 2013 $23.49 3,321,123 0 562,482 73,296 17.4% 1.9% 2014 $24.36 3,321,123 0 317,980 244,502 9.6% 7.4% 2015 $25.65 3,321,123 0 496,494 (178,514) 14.9% -5.4% BOTHELL Year End SHORELINE MERCER ISLAND Avg. Gross Year End New Vacant Square Annual Year Net Absorption Vacancy Rate PUGET SOUND Rental Rate Inventory Construction Feet Growth 2004 $25.89 482,390 0 15,098 17,183 3.1% 3.6%

2005 $26.09 482,390 0 3,281 11,817 0.7% 2.4% LAKE KIRKLAND REDMOND 2006 $27.28 497,390 15,000 3,241 40 0.7% 3.0% WASHINGTON 2007 $31.53 497,390 0 21,465 (18,224) 4.3% -3.7% BAINBRIDGE 520 CORRIDOR 2008 $34.20 497,390 0 28,377 (6,912) 5.7% -1.4% ISLAND

2009 $29.71 497,390 0 39,866 (11,489) 9.9% -4.2% BELLEVUE 2010 $28.26 497,390 0 53,564 (13,698) 11.2% -1.3% SEATTLE CBD ELLIOT BAY BELLEVUE 2011 $29.66 497,390 0 42,886 10,678 9.5% 1.7% SUBURBAN SAMMAMISH LAKE 2012 $32.28 497,390 0 30,183 12,703 6.1% 3.4% SAMMAMISH 2013 $32.72 497,390 0 29,438 745 5.9% 0.1% MERCER ISLAND 2014 $35.55 497,390 0 39,304 (9,866) 7.9% -2.0% I-90 2015 Eastside Submarket Overview CORRIDOR $33.38 497,390 0 45,939 (6,635) 9.2% -1.3% Year End 2004 - 2015 ISSAQUAH

1 Inventory includes Class A&B office, 10,000 SF and greater buildings. RENTON 2 Excludes Owner / User buildings. TUKWILA 3 All data are from end of the quarter / year specified.

4 Annual growth is net absorption divided by inventory. SEATAC 5 Data current as of end of year - January 6, 2016.

KENT

broderickgroup.com | pg. 18 Eastside Office Market Historical Office Supply Statistics (2007 - 2015) Appendix Year Building Name Class Submarket Developer Size Pre-Lease % SF Leased Lead Tenant Detailed Charts & Graphs Historical 2007 Lincoln Square A CBD Kemper Development 542,000 100% 542,000 Eddie Bauer/Microsoft Woodlands Tech Campus - Bldg 1 A Bothell TIAA Realty 85,111 60% 51,066 Evergreen Hospital Bothell Professional Bldg A Bothell First Western Development 48,000 83% 40,000 Fey and Gray/UW Bothell 160th Street A Bothell Seawest Investment 30,000 50% 15,000 Travel Agent Nine Two Nine Bravern Hyla Crossing A Issaquah Rowley 27,583 100% 27,583 John L. Scott 145th Place A I-90 Nelson/Connell 27,250 100% 27,250 Champions Centre Canyon Pointe B Bothell Arden 175,000 100% 175,000 T-Moblie Kamber Corporate Center B I-90 Colpitts Development 50,000 100% 50,000 Bright Horizons Redmond Ridge - Building 18 B Redmond PacTrust 41,750 102% 42,750 Triumph Aerospace 1,026,694 95% 970,649

2008 Advanta - Phase I & II A I-90 Schnitzer 600,000 100% 600,000 Microsoft Tower 333 A CBD Hines/Washington Capital 412,000 95% 403,000 Expedia, Pokemon Lakeview Plaza A & B A Kirkland SRM 133,000 100% 133,000 Google Redmond River Park A Redmond Trammell Crow/ING 107,000 65% 70,000 Group Health Legacy Corporate Center A Redmond Legacy 103,000 0% 0 Sammamish Ridge A Kirkland Mastro 92,000 0% 0 Waterfront Place A Kirkland Goodman 54,521 84% 46,000 First Horizon City Center Plaza Lakeview Plaza / Google The Pathways A I-90 Pathway Partnership 17,552 40% 7,020 Kendall Lake - Snoqualmie Ridge B I-90 OPUS 60,000 0% 0 Redmond Ridge - Building 19 B Redmond PacTrust 40,000 0% 0 Five Corners B Bel-Red Mastro 31,000 100% 31,000 Minecode 1,650,073 78% 1,290,020

2009 City Center Plaza A CBD Beacon Capital 572,000 100% 572,000 El Gaucho, Microsoft The Bravern - Phase II A CBD Schnitzer 500,000 100% 500,000 Microsoft The Bravern - Phase I A CBD Schnitzer 250,000 100% 250,000 Microsoft Schnitzer - North Creek A Bothell Schnitzer 103,000 100% 103,000 Vertafore Lakeview Plaza - Building C A Kirkland SRM 62,000 100% 62,000 Google Northwest Tech Center B Redmond Wiley 72,000 0% 0 1,559,000 95% 1,487,000 Two Newport Lake Hills Village 2010 Two Newport A I-90 Bentall 165,000 100% 165,000 T-Moblie Bear Creek Commons A Redmond Hammes 86,000 100% 86,000 Swedish Medical Center Highmark Medical Center A Issaquah Highmark 46,000 91% 41,860 Multiple Medical Users Lake Hills Village B Bellevue Sub Cosmos 44,000 5% 2200 341,000 87% 295,060

2011 Overlake Medical Pavilion A Bellevue Sub Healthcare Realty Trust 190,000 16% 30,000 ProAlliance Evergreen Medical Facility A Redmond Merlino 42,240 100% 42,240 Evergreen Hospital 232,240 31% 72,240

2012 - 2014 No new construction

2015 Nine Two Nine A CBD Trammell Crow 462,000 0% 84,794 Salesforce.com

broderickgroup.com | pg. 19 Broderick Group, Inc. is a Seattle and The name of the company is derived Broderick Group, Inc. is founded Bellevue based commercial real estate from Henry Broderick, a revered Seattle on the same principles: services firm which specializes in area commercial realtor from 1908 office, high-tech, and industrial leasing to 1975. Henry Broderick was known Uncompromised Focus Commercial Real Estate Services and sales. for a passionate commitment to the Team Approach Eastside Seattle Puget Sound Area representation of his clients and to the Quality People @broderickgroup.com community in which he lived. Value Added Services

John Black Kelly Breedt Lauren Chierichetti Jennifer Chung John Coombs Jason Furr Steve Henderson Al Hodge Paul Jerue e: black@ e: kelly@ e: lauren@ e: jennifer@ e: coombs@ e: furr@ e: henderson@ e: hodge@ e: jerue@

Jim Kinerk Chris Langer David Marks Damon McCartney Eric Meussner Oscar Oliveira Connor Olsen Chris Rohrbach e: kinerk@ e: langer@ e: david@ e: mccartney@ e: meussner@ e: oscar@ e: olsen@ e: rohrbach@

Matt Schreck Tyler Slone Maggie Slone Paul Sweeney Tony Ulacia Lauren Van Jeff Watson Grant Yerke Zach Zaborowski e: schreck@ e: slone@ e: maggie@ e: sweeney@ e: ulacia@ e: laurenv@ e: watson@ e: yerke@ e: zach@

Website & Available Properties List: broderickgroup.com Bellevue Office Seattle Office th Email Addresses: @broderickgroup.com 10500 NE 8 Street, Suite 900 600 University Street, Suite 2220 Bellevue, Washington 98004 Seattle, Washington 98101 Main. 425.646.3444 Main. 206.838.5775 @broderickgroup broderick-group Fax. 425.646.3443 Fax. 206.838.7640