OFFICE MARKET REPORT Q1 2021 Denver, CO

OUR NETWORK IS YOUR EDGE. PREPARED BY:

All information is from sources deemed reliable and is subject to errors,omissions, change of price, rental, prior sale, and withdrawal without notice. Prospect should Brandon Langiewicz carefully verify each item of information contained herein. Partner

Hoff & Leigh | 3141 S Broadway, Suite A | Denver, CO 80113 | 720.572.5187 office www.hoffleigh.com/denver DenverDenver Office Office

OFFICE MARKET REPORT

Market Key Statistics 1 Leasing 3 Rent 8 Construction 11 Under Construction Properties 13 Sales 15 Sales Past 12 Months 17 Economy 19 Market Submarkets 24 Supply & Demand Trends 28 Rent & Vacancy 30 Sale Trends 32

4/5/2021 Copyrighted report licensed to Hoff & Leigh Colorado Springs, LLC - 1031464 OVERVIEWOverview DenverDenver Office Office

12 Mo Deliveries in SF 12 Mo Net Absorption in SF Vacancy Rate 12 Mo Rent Growth 1.3 M (5 M) 13.6% -1.7%

The Denver office market entered the pandemic on solid currently available, an all-time high in Denver. footing. The market has benefitted from the in-migration Sublease availabilities are mainly concentrated in and relocation of companies to the area, particularly from Downtown, where oil and gas tenants occupy roughly technology companies fleeing expensive office space in 15% of office space. Prior to the pandemic, merger and the coastal markets. Job and population growth have acquisition activity in the oil industry meant that large been robust in the past decade, driving strong absorption blocks of space were already being placed on the gains, rent growth, and development activity in the office market, but energy tenants began listing their space in market. earnest last year with the additional challenges brought on by the pandemic. But Denver's story of growth has not insulated it from the effects of the coronavirus pandemic, which continues to Softer demand and a wave of speculative construction weigh on the office market as tenants hold off on making delivering in the coming quarters have vacancies rising in long-term decisions amid the uncertain environment. the forecast, which will continue to shift leverage back to Additionally, oil prices hit all-time lows in April of last tenants in the near term. year from decreased demand for fuel worldwide, and several energy firms in Denver were forced to file for The immediate aftermath of COVID-19 shutdowns made bankruptcy or conduct layoffs. it more challenging for investors and lenders to underwrite deals. After a dismal second quarter, Deal volume fell significantly in the spring of 2020 as investment activity did pick up in the second half of 2020, office tenants turned their attention to accommodate a with large institutional investors returning to the market. remote workforce. This wait-and-see approach The uptick in investment activity in the second half of the persisted through the remainder of the year, and leasing year helped to drive up total annual leasing volume. activity in the last three quarters of 2020 declined by Denver turned in a respectable year, with annual sales roughly 50% as a result. The market only recorded 5.6 activity totaling nearly $2.4 billion in 2020. Although this million SF of leasing activity last year, which is similar to is down from 2018 and 2019, it far exceeds what was what was recorded during the height of the Great recorded during the Great Recession. Recession. Denver's office market is in a period of heightened Vacancies were already creeping up before the volatility, but there are reasons to be optimistic about its pandemic, but the shock to the local economy only made long-term health. Denver has enjoyed some big wins matters worse, as 3.6 million SF of space was vacated in this year with the relocation and expansion of 2020. In addition to direct space hitting the market, companies, and the market continues to diversify with sublet availabilities are also posing a challenge to the emergence of the tech sector's footprint in the local Denver's office market. The year ended with 4.5 million economy. SF of available sublease space. This figure continues to increase into 2021 with 4.7 million SF of sublease space

4/5/2021 Copyrighted report licensed to Hoff & Leigh Colorado Springs, LLC - 1031464 Page 2 OVERVIEWOverview DenverDenver Office Office

KEY INDICATORS

Net Absorption Under Current Quarter RBA Vacancy Rate Market Rent Availability Rate Deliveries SF SF Construction 4 & 5 Star 75,247,181 16.6% $34.01 23.9% (346,288) 0 2,336,602 3 Star 71,661,527 13.0% $26.13 16.4% (49,644) 0 105,415 1 & 2 Star 32,104,082 7.8% $21.95 11.4% (13,076) 0 0 Market 179,012,790 13.6% $28.76 18.7% (409,008) 0 2,442,017

Historical Forecast Annual Trends 12 Month Peak When Trough When Average Average Vacancy Change (YOY) 3.4% 12.1% 13.6% 16.0% 2003 Q3 7.0% 2000 Q2 Net Absorption SF (5 M) 1,305,259 542,855 5,190,056 2000 Q4 (4,670,458) 2021 Q1 Deliveries SF 1.3 M 2,221,522 1,175,377 7,434,539 2001 Q1 500,954 2012 Q1 Rent Growth -1.7% 1.5% 1.3% 12.1% 2007 Q1 -10.2% 2009 Q4 Sales Volume $1.5 B $1.8B N/A $4.2B 2007 Q3 $340.8M 2009 Q4

4/5/2021 Copyrighted report licensed to Hoff & Leigh Colorado Springs, LLC - 1031464 Page 3 LEASINGLeasing DenverDenver Office Office

Based on historical data since 2000, Denver's office slowdown, has put Denver's energy firms in a precarious market has never had four consecutive quarters of position. Several companies announced significant negative absorption. But that streak was broken last year layoffs in recent quarters due to what were already as the market experienced major tenant move-outs. 3.6 perceived as weaker oil prices. Whiting Petroleum, which million SF was vacated in 2020, causing vacancy to rise signed a lease for 135,000 SF at the Wells Fargo Center by 320 basis points from the previous year to 13.6%. in the CBD in 2018 and took occupancy in 2019, laid off Only 14 leases over 50,000 SF were signed in 2020, and 254 employees this past summer. In February 2020, half of these were renewals. Aerospace, technology, and Extraction Oil and Gas announced it would eliminate health services companies were most active in the 20% of employee positions in the state, including jobs at market last year. its downtown headquarters. A slew of layoff announcements followed in March and April of last year. A total of 4.7 million SF of sublease space is available, representing a record for the Denver market. Companies In the past, space vacated by energy tenants was largely that don't have upcoming lease expirations are looking backfilled by tech companies, but with work-from-home for options to offload space, either due to financial initiatives in place for the foreseeable future, these new distress, consolidation, or a permanent work-from-home leases did not materialize to offset the space losses. policy. The significant rise in sublease space is expected to slow the office market's recovery and hinder near- Suburban submarkets will continue to play a role in term rent growth. The effects will largely be felt in Denver's robust absorption trends. As downtown Downtown Denver, where the vast amount of space is submarkets have grown increasingly unaffordable and listed. The pace of sublease space coming to market has congested for employees, or no longer fit the lifestyle of not slowed, and sublease levels are expected to rise older millennials with families, companies have found through 2021. plenty of talent in peripheral areas of the metro.

WeWork is all in on Downtown Denver. Dating back to Lockheed Martin is in the process of hiring 750 additional 2018, the embattled co-working provider inked deals for employees in the metro, and the aerospace defense firm more than 500,000 SF at eight new locations. But after a signed 3 leases totaling 458,000 SF in Denver's failed IPO and the removal of its CEO, many are left southeast suburban area to accommodate the new questioning whether WeWork can honor its lease growth. Colorado's aerospace industry as a whole has commitments. The company recently announced plans to been thriving, and Ball Aerospace and Raytheon close 4 of its locations in Denver. Combined, this space Technologies also added hundreds of jobs to the Denver totals 240,000 SF which will likely hit the sublease metro last year. market in the coming months. Healthpeak Properties made headlines last year when The commercial real estate industry has speculated for the real estate investment trust announced plans to years about how the co-working model would perform relocate its headquarters to Denver and create 166 jobs during a downturn. WeWork and other co-working in the metro. This was great news for the local economy, spaces have become areas of weakness in the office but the real excitement came when Healthpeak market. But the good news for Denver is that these announced that those jobs would have an average companies only occupy about 1% of total office space annual wage of $425,000, which is roughly 6.5 times and are primed for a relatively quick rebound once the higher than Colorado's average annual wage. After pandemic is under control, especially if tech tenants evaluating office space across Denver, Healthpeak decide to jump on vacated creative office spaces. decided on the Denver Tech Center and leased a full floor at 50 Fifty DTC. The oversupply of oil, coupled with a dramatic demand

4/5/2021 Copyrighted report licensed to Hoff & Leigh Colorado Springs, LLC - 1031464 Page 4 LEASINGLeasing DenverDenver Office Office

NET ABSORPTION, NET DELIVERIES & VACANCY

VACANCY RATE

4/5/2021 Copyrighted report licensed to Hoff & Leigh Colorado Springs, LLC - 1031464 Page 5 LEASINGLeasing DenverDenver Office Office

AVAILABILITY RATE

4/5/2021 Copyrighted report licensed to Hoff & Leigh Colorado Springs, LLC - 1031464 Page 6 LEASINGLeasing DenverDenver Office Office

12 MONTH NET ABSORPTION SF IN SELECTED BUILDINGS

Net Absorption SF Building Name/Address Submarket Bldg SF Vacant SF 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr 12 Month Western Union Campus Meridian 192,779 0 0 0 0 0 182,186 Belleview Station Denver Tech Center 384,712 229,920 1,730 72,994 0 0 154,792 Platte 15 Platte River 156,915 23,570 3,918 0 0 0 125,664 Westmoor Technology Park Northwest Denver 205,013 106,596 0 0 0 0 93,009 UC Health Offices Cherry Creek 89,000 0 0 0 0 0 89,000 ATRIA Broomfield County 88,427 0 0 0 0 0 83,441 18th Street Atrium LoDo 117,470 0 0 0 0 0 82,299 50 FIFTY DTC Denver Tech Center 192,351 69,489 41,711 0 0 0 71,128 1144 Fifteenth CBD 672,000 91,222 97 0 0 0 70,101 Rampart Center Inverness 66,800 0 0 0 0 0 66,800 3060 Brighton Blvd Platte River 68,661 0 0 0 0 0 64,888 169 Inverness Dr W Inverness 124,756 53,520 0 0 0 0 61,855 Denver Tech Center Denver Tech Center 190,236 0 0 0 0 0 60,018 Seventeenth Street Plaza LoDo 695,372 56,246 12,025 0 0 0 57,908 Buell Public Media Center Platte River 60,000 0 0 0 0 0 56,703 9th & Colorado Glendale 64,680 16,265 0 0 0 0 48,415 Ball Corporation - Building 2 Northwest Denver 46,500 0 46,500 0 0 0 46,500 Subtotal Primary Competitors 3,415,672 646,828 105,981 72,994 0 0 1,414,707 Remaining Denver Market 175,597,118 23,679,797 (1,152,725) (482,002) 0 0 (6,450,331) Total Denver Market 179,012,790 24,326,625 (1,046,744) (409,008) 0 0 (5,035,624)

4/5/2021 Copyrighted report licensed to Hoff & Leigh Colorado Springs, LLC - 1031464 Page 7 LEASINGLeasing DenverDenver Office Office

TOP OFFICE LEASES PAST 12 MONTHS

Building Name/Address Submarket Leased SF Qtr Tenant Name Tenant Rep Company Leasing Rep Company

Campus 470 Highlands Ranch 203,951 Q4 20 Lockheed Martin Corporat… - Cushman & Wakefield

ParkRidge Corporate Center Lone Tree 166,303 Q2 20 Lockheed Martin - CBRE

Belleview Station Denver Tech Center 72,994 Q3 20 LogistiCare Solutions Kentwood Commercial Cushman & Wakefield

Century Park * Southeast C-470 72,269 Q2 20 United Launch Alliance Savills -

950 17th St * CBD 71,921 Q3 20 Liberty Oilfield Services - Newmark

Campus 470 Highlands Ranch 67,766 Q4 20 HCL America, Inc. - Cushman & Wakefield

Block 162 CBD 59,272 Q1 21 Sherman & Howard Savills Cushman & Wakefield

Waterview at Highland Pk Panorama/Highland Park 58,278 Q3 20 Lockheed Martin Savills -

Peakview Tower Greenwood Village 55,348 Q3 20 Delta Dental Of Colorado - -

1670 Broadway * CBD 54,773 Q2 20 HDR - -

Highland Park * Panorama/Highland Park 49,953 Q3 20 National Cattlemen's Beef… - Colliers International

9th & Colorado Glendale 48,415 Q2 20 NGL Energy Partners LP - Cushman & Wakefield

McGregor Square Office LoDo 43,233 Q4 20 Red Canary JLL McGregor Square

1125 Seventeenth Street * CBD 39,506 Q4 20 Chase - Cushman & Wakefield

Wewatta Office Tower * LoDo 35,474 Q3 20 Dorsey & Whitney LLP CBRE Crestone Partners, LLC

ParkRidge Corporate Ctr Lone Tree 35,216 Q3 20 Kiewit Savills CBRE

ParkRidge Corporate Ctr Lone Tree 35,216 Q3 20 Cochlear Americas Savills CBRE

Meridian Int'l Bus Center Meridian 34,942 Q4 20 Richey, May & Co. LLP - Cushman & Wakefield

Palazzo Verdi Greenwood Village 33,368 Q4 20 Theia Group Colliers International Cushman & Wakefield

Inverness Building Park Inverness 32,946 Q1 21 Regus JLL CBRE

1001 17th Street CBD 32,778 Q1 21 JAL Investments LLC - -

INOVA Corporate Center Inverness 32,638 Q3 20 General Atomics - Cushman & Wakefield

50 FIFTY DTC Denver Tech Center 32,106 Q4 20 Healthpeak Properties, Inc. - RISE Commercial Prop…

McGregor Square Office LoDo 31,402 Q4 20 Lewis Roca Rothgerber C… - McGregor Square

JAG Logistics Center at DIA SW DIA/Pena Blvd 31,200 Q3 20 Air General - Cushman & Wakefield

Orchard Falls * Greenwood Village 30,795 Q2 20 98.5 Kygo - Cushman & Wakefield

Mountain View Corp Center Broomfield County 28,401 Q1 21 NuVasive - Newmark

Wewatta Office Tower * LoDo 28,089 Q2 20 Kilpatrick Townsend LLP - Crestone Partners, LLC

303 E 17th Ave CBD 26,252 Q2 20 Colorado’s Health Capitol Forte Commercial R… Lincoln Property Comp…

The Pinnacle Town Center Northeast 25,672 Q3 20 Comsero Inc Jamis Companies, Inc. Unique Properties, Inc.

400 W 48th Ave Northwest Denver 24,887 Q1 21 Farrington Construction M… - Cushman & Wakefield

1144 Fifteenth CBD 24,631 Q4 20 Stinson Cushman & Wakefield JLL

McGregor Square Office LoDo 24,554 Q3 20 - - McGregor Square

McGregor Square Office LoDo 24,541 Q3 20 - - McGregor Square

1800 Larimer * LoDo 24,410 Q4 20 Monticello Associates - Newmark

1800 Larimer * LoDo 24,321 Q4 20 KRG Capital Partners - Newmark

Vista 25 at Arapahoe Station Greenwood Village 24,294 Q4 20 Timeshare Termination T… Madison Commercia… Cushman & Wakefield

555 17th St CBD 24,149 Q2 20 Motley Fool Cresa Cushman & Wakefield

700 17th St * CBD 24,018 Q4 20 Machol & Johannes, LLC - -

Westmoor Technology Park Northwest Denver 24,000 Q1 21 Inovonics - JLL Renewal

4/5/2021 Copyrighted report licensed to Hoff & Leigh Colorado Springs, LLC - 1031464 Page 8 RENTRent DenverDenver Office Office

Denver's run of robust rent growth has come to an end There are a handful of submarkets that have recorded due to the impact of the novel coronavirus and volatility sizable rent gains during the pandemic. Submarkets with in the oil sector. Gains have steadily decelerated in the highest annual rent growth are concentrated in the recent quarters as demand came to a sudden halt and a southeast suburban area of Denver, with the Denver record level of availabilities have hit the market, marking Tech Center, Meridian, and Highlands Ranch submarkets a clear reversal after years of hefty rent hikes. The topping the leaderboard. Speculative construction has trailing 12-month rent growth dipped into negative remained at a minimum in this part of the city, and a territory in 21Q1, contacting by -1.7% from the previous disparity between rents here and in downtown has year. allowed landlords to push rates more aggressively.

The office market has not recorded the same rent losses Looking ahead, recovery from this recession is likely to that were seen during the Great Recession, when rents be slow as the market digests current available inventory fell by more than 10%. Denver has grown and diversified amid tempered demand, which will continue to put since then, helping the market to better weather the downward pressure on rents over the next few quarters. storm. Additionally, landlords have leaned heavily on However, tech and aerospace companies have offering concessions and generous TI allowances rather announced relocations to the Mile High City this year, than lowering base rent. even as the movement of people has been restricted across the U.S. At about $29.00/SF, Denver's office After a decade of explosive growth that favored space comes at a substantial discount relative to other landlords, current market conditions have tenants gaining tech markets. In the Bay Area, office rents are more than more leverage. Rents are projected to contract over the twice as much, and in Seattle and Austin, they are about next few quarters. Growing sublease availabilities will 35% higher. Denver continues to be an attractive location also put downward pressure on rents as these spaces for out-of-state companies looking to expand, which are offered at a discount relative to direct space. On the leaves little doubt that the market can return to strong bright side, the construction pipeline has moderated from rent growth post-recession. highs in 2016–17, which should help minimize supply pressure on the office market.

MARKET RENT GROWTH (YOY)

4/5/2021 Copyrighted report licensed to Hoff & Leigh Colorado Springs, LLC - 1031464 Page 9 RENTRent DenverDenver Office Office

MARKET RENT PER SQUARE FEET

4 & 5 STAR EXPENSES PER SF (ANNUAL)

Market / Cluster Utilities Cleaning Insurance Taxes Other Total Denver $0.61 $1.16 $0.21 $5.84 $5.67 $13.49 Aurora $0.93 $1.21 $0.27 $3.13 $4.68 $10.22 Broomfield $0.62 $1.07 $0.23 $6.13 $4.99 $13.04 Clear Creek County $0.35 $0.47 $0.15 $1.36 $2.32 $4.65 Colorado Blvd/Glendale $0.69 $1.47 $0.28 $4.81 $5.88 $13.13 Downtown $0.63 $1.24 $0.23 $7.70 $6.97 $16.77 Midtown $0.52 $1.11 $0.18 $4.60 $6.51 $12.92 North Denver $0.47 $0.99 $0.16 $4.77 $4.59 $10.98 Northeast Denver $0.58 $1.05 $0.19 $4.77 $4.76 $11.35 Northwest Denver $0.57 $1 $0.21 $4.88 $4.61 $11.27 Outlying Arapahoe County $0.74 $0.99 $0.31 $10.63 $3.92 $16.59 Outlying Douglas County $0.74 $0.99 $0.31 $4.98 $3.92 $10.94 Parker/Castle Rock $0.83 $1.11 $0.35 $3.64 $3.71 $9.64 Southeast Denver $0.56 $1.17 $0.18 $6.05 $5.68 $13.64 Southwest Denver $0.60 $1.04 $0.20 $2.24 $5.30 $9.38 West Denver $0.61 $0.87 $0.25 $4.94 $3.68 $10.35 Expenses are estimated using NCREIF, Trepp, IREM, and CoStar data using the narrowest possible geographical definition from Zip Code to region.

4/5/2021 Copyrighted report licensed to Hoff & Leigh Colorado Springs, LLC - 1031464 Page 10 RENTRent DenverDenver Office Office

3 STAR EXPENSES PER SF (ANNUAL)

Market / Cluster Utilities Cleaning Insurance Taxes Other Total Denver $0.50 $0.97 $0.14 $4.51 $3.86 $9.98 Aurora $0.84 $1.10 $0.11 $3.80 $3.34 $9.19 Broomfield $0.51 $1 $0.13 $5.39 $3.64 $10.67 Clear Creek County $0.44 $0.98 $0.13 $2.24 $3.96 $7.75 Colorado Blvd/Glendale $0.62 $1.31 $0.23 $5.43 $4.64 $12.23 Downtown $0.54 $1.10 $0.19 $5.12 $5.67 $12.62 Elbert County $0.35 $0.70 $0.09 $2.75 $2.76 $6.65 Midtown $0.47 $0.98 $0.18 $3.46 $4.59 $9.68 North Denver $0.45 $0.89 $0.12 $4.76 $3.39 $9.61 Northeast Denver $0.44 $0.86 $0.11 $4.68 $3.29 $9.38 Northwest Denver $0.44 $0.88 $0.12 $3.96 $3.17 $8.57 Outlying Arapahoe County $0.50 $0.86 $0.11 $6.32 $3.16 $10.95 Outlying Douglas County $0.39 $0.77 $0.10 $4.86 $3.02 $9.14 Park County $0.45 $0.90 $0.12 $1.59 $3.50 $6.56 Parker/Castle Rock $0.45 $0.89 $0.12 $5.66 $2.96 $10.08 Southeast Denver $0.46 $0.91 $0.12 $4.55 $3.92 $9.96 Southwest Denver $0.45 $0.89 $0.12 $4.56 $3.50 $9.52 West Denver $0.45 $0.90 $0.12 $3.77 $3.35 $8.59 Expenses are estimated using NCREIF, Trepp, IREM, and CoStar data using the narrowest possible geographical definition from Zip Code to region.

1 & 2 STAR EXPENSES PER SF (ANNUAL)

Market / Cluster Utilities Cleaning Insurance Taxes Other Total Denver $0.45 $0.65 $0.14 $4.16 $2.59 $7.99 Aurora $0.47 $0.51 $0.11 $2.84 $2.61 $6.54 Broomfield $0.40 $0.53 $0.11 $5.33 $1.86 $8.23 Clear Creek County $0.40 $0.56 $0.13 $1.40 $2.83 $5.32 Colorado Blvd/Glendale $0.46 $0.69 $0.17 $5.30 $3.52 $10.14 Downtown $0.51 $0.96 $0.18 $5.36 $3.72 $10.73 Elbert County $0.37 $0.51 $0.10 $2.18 $2.07 $5.23 Gilpin County $0.43 $0.60 $0.11 $1.01 $2.40 $4.55 Midtown $0.48 $0.82 $0.19 $4.27 $2.35 $8.11 North Denver $0.42 $0.56 $0.11 $4.63 $1.59 $7.31 Northeast Denver $0.43 $0.57 $0.12 $3.96 $2.05 $7.13 Northwest Denver $0.43 $0.60 $0.11 $4.41 $2.39 $7.94 Outlying Adams County $0.43 $0.60 $0.11 $2.52 $2.40 $6.06 Outlying Arapahoe County $0.41 $0.56 $0.10 $3.44 $2.79 $7.30 Outlying Douglas County $0.41 $0.57 $0.11 $3.66 $2.30 $7.05 Park County $0.43 $0.60 $0.11 $1.79 $2.42 $5.35 Parker/Castle Rock $0.41 $0.56 $0.11 $4.51 $2.27 $7.86 Southeast Denver $0.42 $0.53 $0.11 $3.92 $3.07 $8.05 Southwest Denver $0.44 $0.60 $0.12 $3.63 $2.20 $6.99 West Denver $0.42 $0.58 $0.11 $3.77 $2.47 $7.35 Expenses are estimated using NCREIF, Trepp, IREM, and CoStar data using the narrowest possible geographical definition from Zip Code to region.

4/5/2021 Copyrighted report licensed to Hoff & Leigh Colorado Springs, LLC - 1031464 Page 11 CONSTRUCTIONConstruction DenverDenver Office Office

In addition to increasing vacant and sublease space, In the CBD, Block 162 is on track to wrap up rising speculative office construction has also contributed construction this spring. The speculative project, totaling to the build up of available space in the Denver market. 608,000 SF, will deliver in a challenging leasing More than 2.1 million SF was under construction at the environment, but the building offers many high-end end of the year, about 60% of which was available for features that could be appealing to tenants in a post- lease. COVID world, such as best-in-class HVAC and elevator systems. The first lease in the building was announced in Platte River has emerged as one of the most desirable 21Q1. Denver-based law firm Sherman & Howard areas for office tenants in Denver, and development leased 60,000 SF with plans to relocate from its current accelerated to staggering levels in the submarket in location at 633 17th St. this fall. The firm chose the recent years. The supply wave continues even in the location due to its premium amenities, access to public midst of the pandemic, and Platte River is on track to transportation, and columnless floor plates. expand its inventory by over 13%. One of the biggest projects in the pipeline, Kiewit's One Platte, totaling 250,000 SF, broke ground in early Regional HQ in Lone Tree, is slated to deliver 260,000 2020 on a speculative basis. Once a surface parking lot, SF near the Sky Ridge Light Rail station by 2021. Kiewit the project represents essentially the last development was part of the redevelopment of Denver's heralded site of scale along the historic Platte Street and will Union Station and is also the primary contractor for the complete development of the walkable, mixed-use $1.2 billion I-70 infrastructure project. corridor.

DELIVERIES & DEMOLITIONS

4/5/2021 Copyrighted report licensed to Hoff & Leigh Colorado Springs, LLC - 1031464 Page 12 CONSTRUCTIONConstruction DenverDenver Office Office

SUBMARKET CONSTRUCTION

Under Construction Inventory Average Building Size

No. Submarket Bldgs SF (000) Pre-Leased SF (000) Pre-Leased % Rank All Existing Under Constr Rank 1 CBD 2 651 82 12.7% 9 211,185 325,730 1 2 Lone Tree 2 392 392 100% 1 47,626 195,927 3 3 LoDo 2 330 229 69.2% 5 50,600 165,103 4 4 Platte River 1 250 3 1.2% 10 44,757 250,402 2 5 Glendale 2 163 110 67.6% 6 44,427 81,533 7 6 Parker/Castle Rock 3 140 129 92.5% 2 13,088 46,500 9 7 Denver Tech Center 1 130 96 74.1% 4 112,927 130,045 5 8 East Hampden 1 104 26 24.9% 8 25,649 104,000 6 9 Cherry Creek 1 75 67 89.2% 3 26,902 75,000 8 10 West Denver 3 67 39 58.3% 7 20,636 22,280 10 All Other 5 140 86 61.4% 25,287 27,929 Totals 23 2,442 1,259 51.6% 32,236 106,175

4/5/2021 Copyrighted report licensed to Hoff & Leigh Colorado Springs, LLC - 1031464 Page 13 UNDERUnder CONSTRUCTION Construction PropertiesPROPERTIES DenverDenver Office Office

Properties Square Feet Percent of Inventory Preleased 23 2,442,017 1.4% 51.6%

UNDER CONSTRUCTION PROPERTIES

UNDER CONSTRUCTION

Property Name/Address Rating Bldg SF Stories Start Complete Developer/Owner Block 162 Patrinely Group, LLC 1 607,987 30 Jun 2018 May 2021 675 15th St Patrinely Group, LLC Kiewit Regional HQ - Ph… Kiewit 2 260,121 5 Jun 2019 May 2021 Trainstation Cir Kiewit One Platte The Nichols Partnership, Inc. 3 250,402 5 Jan 2020 Feb 2022 1701 Platte St Shorenstein Properties LLC McGregor Square Office McGregor Square 4 203,406 11 Oct 2018 May 2021 1901 Wazee St McGregor Square Boulevard 1 One Confluent Development 5 139,065 3 Aug 2019 May 2021 Quebec St & Lowry Blvd Confluent Development Kiewit Regional HQ - Ph… Kiewit 6 131,733 4 Jun 2020 Jun 2021 Trainstation Cir Kiewit Vectra Bank Building Front Range Land & Developmen… 7 130,045 9 Dec 2020 Dec 2022 7222 E Layton Ave -

4/5/2021 Copyrighted report licensed to Hoff & Leigh Colorado Springs, LLC - 1031464 Page 14 UNDERUnder CONSTRUCTION Construction PropertiesPROPERTIES DenverDenver Office Office

UNDER CONSTRUCTION

Property Name/Address Rating Bldg SF Stories Start Complete Developer/Owner Market Station Continuum Partners LLC 8 126,800 7 Jun 2018 May 2021 1601 Market St Continuum Partners LLC Parker Adventist Hospita… Med Development 9 110,000 5 Apr 2020 Jun 2021 9403 Crown Crest Blvd Lillibridge Healthcare Services, Inc. Synergy Medical Center Hill Companies, LLC 10 104,000 5 Jun 2019 May 2021 500 E Hampden Ave Hill Companies, LLC 240 Saint Paul St BMC Investments Co, LLC 11 75,000 6 Jun 2020 Jun 2021 Clark Companies, Inc. Ball Corporation - Buildi… Ball Corporation 12 46,500 4 Oct 2019 May 2021 W 108th Cir Ball Corporation Emily`s Office Stonebridge Companies 13 43,473 4 Apr 2019 May 2021 1261 Glenarm Pl Stonebridge Companies Candelas Medical Office… Mortenson Construction 14 42,369 2 Sep 2020 Jul 2021 15389 W 91st Dr Mortenson Construction The Hooper Office/Retail Palisade Partners 15 39,400 8 Dec 2019 Jun 2021 2600 Welton St Palisade Partners Boulevard 1 One Confluent Development 16 24,000 2 Aug 2019 May 2021 Quebec St & Lowry Blvd Kelmore Development Corporation 1969 Miner St - 17 19,957 2 Aug 2020 Oct 2021 Pinecroft Core Holdings, LLC Trinity Medical Elevation Companies 18 19,698 2 Aug 2020 May 2021 12880 Colorado Blvd Trinity Orthodontics 5450 Montana Vista Way - 19 16,000 2 Jan 2020 May 2021 - Foothills Credit Union - 20 15,170 3 Jan 2021 Oct 2021 3550 Clear Creek Dr - Firehouse - 21 14,091 3 Dec 2019 Sep 2021 1900 W 32nd Ave - Founders Marketplace - 22 13,500 1 Dec 2019 Sep 2021 1176 Aloha St Goodspeed & Merrill 100 S Wadsworth Blvd - 23 9,300 2 Aug 2020 Sep 2021 Wall Development Group

4/5/2021 Copyrighted report licensed to Hoff & Leigh Colorado Springs, LLC - 1031464 Page 15 SALESSales DenverDenver Office Office

The immediate aftermath of the COVID-19 shutdowns Principal Real Estate Investors purchased the 306,101 made it more challenging for investors and lenders to SF office building for $74.3 million ($242.57/SF) from underwrite deals, but this changed in the second half of MetLife Investment Management. The building was 82% 2020 with major players once again making bullish calls leased at the time of sale to a diverse tenant mix, on Denver's office market. Annual sales activity totaled including Regus, Principal Financial Group, and Insperity. nearly $2.4 billion in 2020. Although this was down from 2018 and 2019, it far exceeds what was recorded during In the Inverness submarket, INOVA Dry Creek 2 sold in the Great Recession. This momentum has carried over January. California-based Libitzky Property Companies into 2021 with $374 million already trading hands in the acquired the asset for $63.2 million ($287/SF). The first two months of the year. 220,396 SF building is located within the larger INOVA Dry Creek mixed-use business park that was developed Investment sales in 2021 have largely been concentrated by United Properties and Principal Real Estate Investors in Denver's southeast suburban corridor. In the Denver LLC. Chicago-based Capri EGM, LLC purchased INOVA Tech Center, 4600 S Syracuse St. sold in February. A Dry Creek 1 in 2017 for $67.5 million ($319/SF). joint venture between Miller Global Properties LLC and

SALES VOLUME & MARKET SALE PRICE PER SF

4/5/2021 Copyrighted report licensed to Hoff & Leigh Colorado Springs, LLC - 1031464 Page 16 SALESSales DenverDenver Office Office

MARKET CAP RATE

4/5/2021 Copyrighted report licensed to Hoff & Leigh Colorado Springs, LLC - 1031464 Page 17 SALESSales PAST Past 12 12 MONTHS Months DenverDenver Office Office

Sale Comparables Avg. Cap Rate Avg. Price/SF Avg. Vacancy At Sale 369 6.7% $252 7.5%

SALE COMPARABLE LOCATIONS

SALE COMPARABLES SUMMARY STATISTICS

Sales Attributes Low Average Median High Sale Price $160,000 $7,381,941 $1,550,000 $450,000,000

Price/SF $8.02 $252 $210 $1,807

Cap Rate 2.8% 6.7% 6.9% 10.7%

Time Since Sale in Months 0.2 5.5 5.0 11.8

Property Attributes Low Average Median High Building SF 792 25,708 7,500 1,219,058

Stories 1 2 2 52

Typical Floor SF 629 8,137 4,835 65,750

Vacancy Rate At Sale 0% 7.5% 0% 100%

Year Built 1886 1969 1976 2020

Star Rating 2.4

4/5/2021 Copyrighted report licensed to Hoff & Leigh Colorado Springs, LLC - 1031464 Page 18 SALESSales PAST Past 12 12 MONTHS Months DenverDenver Office Office

RECENT SIGNIFICANT SALES

Property Sale

Property Name - Address Rating Yr Built Bldg SF Vacancy Sale Date Price Price/SF Cap Rate Wells Fargo Center 1 - 1983 1,219,058 3.2% 9/4/2020 $450,000,000 $369 - 1700 Lincoln St CoBank Center 2 - 2015 274,287 0% 8/3/2020 $120,000,000 $437 - 6340 S Fiddlers Green Cir 4600 S Syracuse St 3 - 1999 306,101 13.9% 2/10/2021 $74,250,000 $243 -

INOVA Dry Creek 2 4 - 2018 220,396 28.4% 1/19/2021 $63,200,000 $287 6.1% 10825 E Geddes Ave Larimer Square 5 - 1889 114,936 0% 12/15/2020 $41,958,274 $365 - 1400-1498 Larimer St Larimer Square 6 - 1889 108,389 0% 12/15/2020 $41,585,163 $384 - 1401-1499 Larimer St 3060 Brighton Blvd 7 - 2020 68,661 0% 12/30/2020 $37,605,000 $548 5.6%

Bldg A 8 - 1980 140,527 0% 2/10/2021 $37,533,182 $267 - 4300 Cherry Creek Dr S The Citadel 9 - 1987 130,652 8.8% 5/6/2020 $33,000,000 $253 - 3200 Cherry Creek South Dr Signature Centre at Den… 10 - 2007 185,920 11.8% 3/1/2021 $30,475,000 $164 - 14143 Denver West Pky Bldg B 11 - 1980 107,600 0% 2/10/2021 $28,738,751 $267 - 700 S Ash St Bldg C 12 - 1962 107,560 0% 2/10/2021 $28,728,067 $267 - 710 S Ash St ADT Security Bldg 13 - 2002 131,500 0% 12/22/2020 $22,408,913 $170 - 14200 E Exposition Ave Terrace at Orchard Station 14 - 1982 115,050 7.3% 10/30/2020 $17,110,500 $149 - 5575 DTC Pky Paper Building 15 - 1896 48,480 0% 12/1/2020 $14,750,000 $304 - 1625-1631 Wazee St Arapahoe Medical Plaza 16 - 1982 58,750 12.6% 3/30/2021 $14,375,000 $245 - 13111 E Briarwood Ave 9094 E Mineral Cir 17 - 2000 40,243 0% 5/1/2020 $13,300,000 $330 7.1%

Briscoe Medical Office B… 18 - 2017 60,000 0% 3/11/2021 $11,816,000 $197 - 2356 Meadows Blvd Briscoe Medical Office B… 18 - 2017 60,000 0% 1/27/2021 $11,816,000 $197 - 2356 Meadows Blvd 4949 S Syracuse Bldg 19 - 1982 66,713 15.7% 10/30/2020 $11,577,000 $174 - 4949 S Syracuse St

4/5/2021 Copyrighted report licensed to Hoff & Leigh Colorado Springs, LLC - 1031464 Page 19 ECONOMYEconomy DenverDenver Office Office

Denver's emergence as a bona fide technology market and Russia posturing, and a precipitous fall in demand this cycle has helped insulate it from the impact of the as the movement of people and goods becomes coronavirus-induced downturn. Tech employers typically increasingly restricted due to the coronavirus. allow the flexibility of telecommuting, and many office- using employers have the capacity to facilitate a work- Even though Denver's overall employment growth from-home transition. Office-using jobs in Denver have showed signs of a slowdown last year along with the grown above the national average the past five years at national index, it added tech jobs at an accelerating about 3% annually. pace. Employment in Professional, Scientific & Technical Services grew by more than 7% annually in 2019, one of Government employment has also been consistent, if not the best growth rates in the country. Corporate pedestrian, in terms of employment growth in the state expansions and relocations by tech companies such as capital. The public sector has often been a stabilizing Amazon, Slack, and Conga drove employment gains and force during past economic downturns. The government epitomize the trend of West Coast firms choosing to and professional and business services sectors were the expand in Denver for its robust workforce, quality of life, only nonfarm job sectors in Denver to grow at or above and cost of doing business. their five-year average in 2019. Denver has been frequently lauded as a hot destination Although education and health services job gains were for young, educated job seekers throughout this cycle. below their five-year average in 2019, it ranked as the Headwinds to this trend could come from housing costs, third-strongest employment growth sector behind which are dramatically higher today for both renters and professional and business services and government. prospective owners. While home prices continue to climb Healthcare is seeing a major investment in the $1.3 into the stratosphere (albeit at a slower rate than the billion VA hospital in Aurora, the Denver Health peak years of this cycle), apartment rent growth has Administration's new headquarters in South Midtown, moderated alongside elevated levels of construction, and Catalyst's 300,000-SF digital health facility in the which may provide a relief valve for those considering RiNo neighborhood. the metro for its otherwise robust employment prospects.

On the downside, oil and gas companies clustered in Along with a young, highly educated, and growing labor Denver's CBD are now faced with volatile oil prices that force, the FasTracks transit expansion is another selling plunged to 18-year lows in March. The last time oil point. Transit-oriented development is taking hold prices were this weak in 2016, layoffs were widespread through the metro as additional lines connect downtown throughout the industry. This time, energy companies are to North Denver, Aurora, Southeast Denver, and the faced with dual threats: oversupply due to Saudi Arabia Denver International Airport.

4/5/2021 Copyrighted report licensed to Hoff & Leigh Colorado Springs, LLC - 1031464 Page 20 ECONOMYEconomy DenverDenver Office Office

DENVER EMPLOYMENT BY INDUSTRY IN THOUSANDS

CURRENT JOBS CURRENT GROWTH 10 YR HISTORICAL 5 YR FORECAST

NAICS Industry Jobs LQ Market US Market US Market US Manufacturing 75 0.6 4.42% -3.13% 2.00% 0.60% 0.07% 0.42% Trade, Transportation and Utilities 276 1.0 -2.28% -2.29% 1.90% 0.86% 0.80% 0.56% Retail Trade 134 0.8 -2.22% -2.41% 1.06% 0.40% 1.00% 0.69% Financial Activities 113 1.2 -1.10% -0.90% 2.13% 1.30% 1.18% 0.74% Government 194 0.9 -5.60% -5.21% 0.97% -0.34% 1.48% 1.00% Natural Resources, Mining and Construction 108 1.3 -3.19% -2.74% 4.68% 2.64% 1.71% 1.06% Education and Health Services 192 0.8 -2.11% -2.96% 2.81% 1.61% 1.89% 1.76% Professional and Business Services 289 1.3 -0.22% -3.42% 3.33% 1.87% 1.39% 1.56% Information 50 1.8 -3.52% -4.89% 1.28% 0.22% 1.08% 1.92% Leisure and Hospitality 153 1.1 -10.31% -14.96% 1.61% 0.45% 3.40% 4.13% Other Services 55 1.0 -5.18% -5.56% 1.18% 0.35% 1.81% 1.34% Total Employment 1,505 1.0 -3.01% -4.55% 2.26% 0.95% 1.52% 1.41% Source: Oxford Economics LQ = Location Quotient

YEAR OVER YEAR JOB GROWTH

Source: Oxford Economics

4/5/2021 Copyrighted report licensed to Hoff & Leigh Colorado Springs, LLC - 1031464 Page 21 ECONOMYEconomy DenverDenver Office Office

UNEMPLOYMENT RATE (%)

NET EMPLOYMENT CHANGE (YOY)

4/5/2021 Copyrighted report licensed to Hoff & Leigh Colorado Springs, LLC - 1031464 Page 22 ECONOMYEconomy DenverDenver Office Office

MEDIAN HOUSEHOLD INCOME

POPULATION GROWTH (YOY %)

4/5/2021 Copyrighted report licensed to Hoff & Leigh Colorado Springs, LLC - 1031464 Page 23 ECONOMYEconomy DenverDenver Office Office

NET POPULATION CHANGE (YOY)

DEMOGRAPHIC TRENDS

Current Level 12 Month Change 10 Year Change 5 Year Forecast

Demographic Category Metro US Metro US Metro US Metro US Population 3,017,642 330,855,813 1.1% 0.5% 1.6% 0.6% 1.1% 0.5% Households 1,180,829 123,654,031 1.0% 0.4% 1.6% 0.7% 1.1% 0.5% Median Household Income $88,202 $69,269 1.9% 3.7% 4.1% 3.3% 2.4% 2.2% Labor Force 1,684,443 160,976,547 -0.2% -1.7% 1.8% 0.5% 1.3% 0.8% Unemployment 5.4% 6.7% 1.7% 2.4% -0.3% -0.2% - - Source: Oxford Economics

POPULATION GROWTH LABOR FORCE GROWTH INCOME GROWTH

Source: Oxford Economics

4/5/2021 Copyrighted report licensed to Hoff & Leigh Colorado Springs, LLC - 1031464 Page 24 SUBMARKETSSubmarkets DenverDenver Office Office

DENVER SUBMARKETS

4/5/2021 Copyrighted report licensed to Hoff & Leigh Colorado Springs, LLC - 1031464 Page 25 SUBMARKETSSubmarkets DenverDenver Office Office

SUBMARKET INVENTORY

Inventory 12 Month Deliveries Under Construction

No. Submarket Bldgs SF (000) % Market Rank Bldgs SF (000) Percent Rank Bldgs SF (000) Percent Rank 1 Arapahoe Rd 75 1,723 1.0% 27 0 0 0% - 0 - - - 2 Aurora 314 9,061 5.1% 6 0 0 0% - 0 - - - 3 Broomfield County 142 7,049 3.9% 9 1 12 0.2% 9 0 - - - 4 Capitol Hill 450 6,402 3.6% 10 1 107 1.7% 3 1 39 0.6% 12 5 CBD 131 27,665 15.5% 1 0 0 0% - 2 651 2.4% 1 6 Centennial 89 3,533 2.0% 18 1 10 0.3% 11 0 - - - 7 Cherry Creek 129 3,470 1.9% 19 1 89 2.6% 5 1 75 2.2% 9 8 Clear Creek County 12 110 0.1% 30 0 0 0% - 1 20 18.1% 13 9 Colorado Blvd/I-25 246 5,699 3.2% 12 0 0 0% - 0 - - - 10 Denver Tech Center 109 12,309 6.9% 3 1 385 3.1% 2 1 130 1.1% 7 11 East Hampden 141 3,616 2.0% 17 1 23 0.6% 7 1 104 2.9% 8 12 East I-70/Montbello 89 3,051 1.7% 23 1 12 0.4% 10 0 - - - 13 Elbert County 22 57 0% 31 0 0 0% - 0 - - - 14 Gilpin County 5 25 0% 33 0 0 0% - 0 - - - 15 Glendale 119 5,287 3.0% 13 1 61 1.2% 6 2 163 3.1% 5 16 Greenwood Village 141 9,706 5.4% 5 0 0 0% - 0 - - - 17 Highlands Ranch 43 2,236 1.2% 25 0 0 0% - 0 - - - 18 Inverness 112 6,124 3.4% 11 0 0 0% - 0 - - - 19 LoDo 170 8,602 4.8% 7 0 0 0% - 2 330 3.8% 3 20 Lone Tree 68 3,239 1.8% 22 1 5 0.2% 13 2 392 12.1% 2 21 Meridian 37 3,455 1.9% 20 0 0 0% - 0 - - - 22 North Denver 185 5,021 2.8% 15 1 19 0.4% 8 1 20 0.4% 14 23 Northeast Denver 180 2,072 1.2% 26 0 0 0% - 0 - - - 24 Northwest Denver 504 7,458 4.2% 8 3 95 1.3% 4 2 61 0.8% 11 25 Outlying Adams County 5 15 0% 34 0 0 0% - 0 - - - 26 Outlying Arapahoe County 13 237 0.1% 28 0 0 0% - 0 - - - 27 Outlying Douglas County 22 129 0.1% 29 0 0 0% - 0 - - - 28 Panorama/Highland Park 64 3,758 2.1% 16 0 0 0% - 0 - - - 29 Park County 17 56 0% 32 0 0 0% - 0 - - - 30 Parker/Castle Rock 192 2,513 1.4% 24 1 5 0.2% 14 3 140 5.6% 6 31 Platte River 117 5,237 2.9% 14 5 450 8.6% 1 1 250 4.8% 4 32 South Midtown 255 3,365 1.9% 21 0 0 0% - 0 - - - 33 Southwest Denver 578 10,691 6.0% 4 1 5 0% 12 0 - - - 34 West Denver 777 16,034 9.0% 2 0 0 0% - 3 67 0.4% 10

4/5/2021 Copyrighted report licensed to Hoff & Leigh Colorado Springs, LLC - 1031464 Page 26 SUBMARKETSSubmarkets DenverDenver Office Office

SUBMARKET RENT

Market Rent 12 Month Market Rent QTD Annualized Market Rent

No. Submarket Per SF Rank Growth Rank Growth Rank 1 Arapahoe Rd $24.14 24 0.4% 1 -3.0% 34 2 Aurora $22.36 32 -1.7% 26 2.8% 12 3 Broomfield County $28.85 9 -1.2% 17 2.4% 17 4 Capitol Hill $27.41 15 -1.7% 27 1.9% 19 5 CBD $34.64 4 -3.6% 32 4.6% 4 6 Centennial $24.64 23 -0.4% 9 1.3% 23 7 Cherry Creek $38.17 3 -0.8% 13 1.0% 24 8 Clear Creek County $25.64 22 -1.9% 29 3.7% 6 9 Colorado Blvd/I-25 $28.87 8 -1.6% 24 1.8% 21 10 Denver Tech Center $29.63 7 0.4% 2 -0.1% 32 11 East Hampden $21.08 34 -0.4% 11 2.7% 13 12 East I-70/Montbello $26.16 20 -1.5% 22 3.3% 9 13 Elbert County $23.17 31 -1.4% 20 0.4% 27 14 Gilpin County $23.62 29 -1.1% 15 0.1% 29 15 Glendale $26.83 17 -1.3% 19 2.6% 14 16 Greenwood Village $27.65 12 0% 5 -1.0% 33 17 Highlands Ranch $28.44 11 0.2% 3 0.5% 26 18 Inverness $25.64 21 -0.2% 8 0.8% 25 19 LoDo $39.70 2 -3.8% 33 4.0% 5 20 Lone Tree $30.82 6 -0.1% 6 1.8% 20 21 Meridian $28.56 10 0% 4 -0.1% 31 22 North Denver $26.74 19 -1.8% 28 4.6% 3 23 Northeast Denver $24.09 27 -1.2% 16 11.5% 1 24 Northwest Denver $23.54 30 -0.5% 12 1.7% 22 25 Outlying Adams County $24.11 25 -1.3% 18 0.2% 28 26 Outlying Arapahoe County $27.46 14 -1.6% 23 2.6% 15 27 Outlying Douglas County $26.80 18 -1.7% 25 2.4% 16 28 Panorama/Highland Park $27.52 13 -0.1% 7 -0.1% 30 29 Park County $24.09 26 -1.4% 21 2.1% 18 30 Parker/Castle Rock $31.90 5 -0.4% 10 3.0% 11 31 Platte River $42.78 1 -4.2% 34 9.1% 2 32 South Midtown $27 16 -1.9% 30 3.1% 10 33 Southwest Denver $21.14 33 -2.6% 31 3.7% 8 34 West Denver $23.65 28 -1.0% 14 3.7% 7

4/5/2021 Copyrighted report licensed to Hoff & Leigh Colorado Springs, LLC - 1031464 Page 27 SUBMARKETSSubmarkets DenverDenver Office Office

SUBMARKET VACANCY & NET ABSORPTION

Vacancy 12 Month Absorption

No. Submarket SF Percent Rank SF % of Inv Rank Construc. Ratio 1 Arapahoe Rd 134,751 7.8% 6 (32,585) -1.9% 18 - 2 Aurora 749,998 8.3% 8 (118,903) -1.3% 23 - 3 Broomfield County 918,247 13.0% 18 (170,138) -2.4% 27 - 4 Capitol Hill 621,976 9.7% 14 (99,840) -1.6% 21 - 5 CBD 5,326,815 19.3% 24 (1,573,781) -5.7% 34 - 6 Centennial 681,747 19.3% 25 (158,470) -4.5% 25 - 7 Cherry Creek 419,567 12.1% 16 (20,086) -0.6% 16 - 8 Clear Creek County - - - 0 0% - - 9 Colorado Blvd/I-25 899,750 15.8% 21 (348,253) -6.1% 29 - 10 Denver Tech Center 1,984,509 16.1% 23 6,214 0.1% 7 61.9 11 East Hampden 458,341 12.7% 17 (19,533) -0.5% 15 - 12 East I-70/Montbello 247,832 8.1% 7 (45,430) -1.5% 20 - 13 Elbert County - - - 0 0% - - 14 Gilpin County - - - 7,429 30.1% 6 - 15 Glendale 771,015 14.6% 20 (160,894) -3.0% 26 - 16 Greenwood Village 1,959,700 20.2% 28 (801,333) -8.3% 33 - 17 Highlands Ranch 526,545 23.5% 29 (380,303) -17.0% 30 - 18 Inverness 1,197,989 19.6% 27 (115,739) -1.9% 22 - 19 LoDo 1,133,278 13.2% 19 (449,201) -5.2% 32 - 20 Lone Tree 300,133 9.3% 12 (34,476) -1.1% 19 - 21 Meridian 333,171 9.6% 13 155,803 4.5% 1 - 22 North Denver 423,498 8.4% 9 67,058 1.3% 2 - 23 Northeast Denver 73,383 3.5% 1 20,299 1.0% 5 - 24 Northwest Denver 688,175 9.2% 11 64,260 0.9% 3 1.5 25 Outlying Adams County - - - 0 0% - - 26 Outlying Arapahoe County 17,986 7.6% 5 (1,656) -0.7% 13 - 27 Outlying Douglas County 8,681 6.7% 4 3,925 3.0% 8 - 28 Panorama/Highland Park 597,889 15.9% 22 (281,719) -7.5% 28 - 29 Park County - - - 2,400 4.3% 9 - 30 Parker/Castle Rock 150,817 6.0% 3 (31,286) -1.2% 17 - 31 Platte River 1,016,517 19.4% 26 38,945 0.7% 4 8.4 32 South Midtown 157,660 4.7% 2 (7,620) -0.2% 14 - 33 Southwest Denver 915,075 8.6% 10 (153,830) -1.4% 24 - 34 West Denver 1,611,580 10.1% 15 (396,882) -2.5% 31 -

4/5/2021 Copyrighted report licensed to Hoff & Leigh Colorado Springs, LLC - 1031464 Page 28 SUPPLYSupply & DEMAND & Demand TRENDS Trends DenverDenver Office Office

OVERALL SUPPLY & DEMAND

Inventory Net Absorption

Year SF SF Growth % Growth SF % of Inv Construction Ratio 2025 183,289,311 1,112,054 0.6% 1,327,862 0.7% 0.8 2024 182,177,257 859,794 0.5% 1,406,054 0.8% 0.6 2023 181,317,463 485,371 0.3% 1,565,507 0.9% 0.3 2022 180,832,092 (18,396) 0% 1,302,436 0.7% - 2021 180,850,488 1,912,785 1.1% (1,872,784) -1.0% - YTD 179,012,790 75,087 0% (1,455,752) -0.8% - 2020 178,937,703 1,222,574 0.7% (3,970,084) -2.2% - 2019 177,715,129 1,102,921 0.6% 1,807,183 1.0% 0.6 2018 176,612,208 3,498,293 2.0% 3,156,655 1.8% 1.1 2017 173,113,915 2,378,359 1.4% 1,829,384 1.1% 1.3 2016 170,735,556 973,306 0.6% 1,142,690 0.7% 0.9 2015 169,762,250 1,711,287 1.0% 2,694,043 1.6% 0.6 2014 168,050,963 740,971 0.4% 1,905,198 1.1% 0.4 2013 167,309,992 755,269 0.5% 1,845,846 1.1% 0.4 2012 166,554,723 607,452 0.4% 848,694 0.5% 0.7 2011 165,947,271 384,121 0.2% 1,426,437 0.9% 0.3 2010 165,563,150 921,781 0.6% 2,138,119 1.3% 0.4 2009 164,641,369 1,567,327 1.0% (376,343) -0.2% -

4 & 5 STAR SUPPLY & DEMAND

Inventory Net Absorption

Year SF SF Growth % Growth SF % of Inv Construction Ratio 2025 80,858,748 1,417,478 1.8% 1,426,259 1.8% 1.0 2024 79,441,270 1,163,966 1.5% 1,323,993 1.7% 0.9 2023 78,277,304 788,934 1.0% 1,200,385 1.5% 0.7 2022 77,488,370 285,034 0.4% 1,212,211 1.6% 0.2 2021 77,203,336 2,002,655 2.7% 79,890 0.1% 25.1 YTD 75,247,181 46,500 0.1% (830,765) -1.1% - 2020 75,200,681 1,113,233 1.5% (2,162,131) -2.9% - 2019 74,087,448 1,007,990 1.4% 1,940,958 2.6% 0.5 2018 73,079,458 3,693,336 5.3% 3,503,694 4.8% 1.1 2017 69,386,122 2,031,914 3.0% 786,363 1.1% 2.6 2016 67,354,208 785,086 1.2% 171,141 0.3% 4.6 2015 66,569,122 1,368,072 2.1% 1,345,293 2.0% 1.0 2014 65,201,050 904,336 1.4% 1,035,471 1.6% 0.9 2013 64,296,714 929,619 1.5% 1,545,554 2.4% 0.6 2012 63,367,095 563,907 0.9% 308,454 0.5% 1.8 2011 62,803,188 400,813 0.6% 1,331,040 2.1% 0.3 2010 62,402,375 1,153,049 1.9% 2,069,799 3.3% 0.6 2009 61,249,326 1,255,448 2.1% 330,720 0.5% 3.8

4/5/2021 Copyrighted report licensed to Hoff & Leigh Colorado Springs, LLC - 1031464 Page 29 SUPPLYSupply & DEMAND & Demand TRENDS Trends DenverDenver Office Office

3 STAR SUPPLY & DEMAND

Inventory Net Absorption

Year SF SF Growth % Growth SF % of Inv Construction Ratio 2025 71,766,894 (10) 0% 164,993 0.2% - 2024 71,766,904 (10) 0% 304,641 0.4% - 2023 71,766,914 (11) 0% 533,119 0.7% - 2022 71,766,925 (10) 0% 264,035 0.4% - 2021 71,766,935 131,808 0.2% (1,458,938) -2.0% - YTD 71,661,527 26,400 0% (624,583) -0.9% - 2020 71,635,127 166,236 0.2% (1,383,291) -1.9% - 2019 71,468,891 160,329 0.2% 217,205 0.3% 0.7 2018 71,308,562 (78,851) -0.1% (340,583) -0.5% - 2017 71,387,413 420,723 0.6% 854,874 1.2% 0.5 2016 70,966,690 279,669 0.4% 821,890 1.2% 0.3 2015 70,687,021 657,716 0.9% 813,501 1.2% 0.8 2014 70,029,305 (47,900) -0.1% 631,212 0.9% - 2013 70,077,205 (19,546) 0% 484,377 0.7% - 2012 70,096,751 182,852 0.3% 357,011 0.5% 0.5 2011 69,913,899 65,239 0.1% (47,344) -0.1% - 2010 69,848,660 (61,140) -0.1% 180,994 0.3% - 2009 69,909,800 80,991 0.1% (662,210) -0.9% -

1 & 2 STAR SUPPLY & DEMAND

Inventory Net Absorption

Year SF SF Growth % Growth SF % of Inv Construction Ratio 2025 30,663,669 (305,414) -1.0% (263,390) -0.9% - 2024 30,969,083 (304,162) -1.0% (222,580) -0.7% - 2023 31,273,245 (303,552) -1.0% (167,997) -0.5% - 2022 31,576,797 (303,420) -1.0% (173,810) -0.6% - 2021 31,880,217 (221,678) -0.7% (493,736) -1.5% - YTD 32,104,082 2,187 0% (404) 0% - 2020 32,101,895 (56,895) -0.2% (424,662) -1.3% - 2019 32,158,790 (65,398) -0.2% (350,980) -1.1% - 2018 32,224,188 (116,192) -0.4% (6,456) 0% - 2017 32,340,380 (74,278) -0.2% 188,147 0.6% - 2016 32,414,658 (91,449) -0.3% 149,659 0.5% - 2015 32,506,107 (314,501) -1.0% 535,249 1.6% - 2014 32,820,608 (115,465) -0.4% 238,515 0.7% - 2013 32,936,073 (154,804) -0.5% (184,085) -0.6% - 2012 33,090,877 (139,307) -0.4% 183,229 0.6% - 2011 33,230,184 (81,931) -0.2% 142,741 0.4% - 2010 33,312,115 (170,128) -0.5% (112,674) -0.3% - 2009 33,482,243 230,888 0.7% (44,853) -0.1% -

4/5/2021 Copyrighted report licensed to Hoff & Leigh Colorado Springs, LLC - 1031464 Page 30 RENTRent & VACANCY & Vacancy DenverDenver Office Office

OVERALL RENT & VACANCY

Market Rent Vacancy

Year Per SF Index % Growth Vs Hist Peak SF Percent Ppts Chg 2025 $30.91 134 3.1% 7.3% 23,445,033 12.8% -0.2% 2024 $29.98 130 3.9% 4.0% 23,658,078 13.0% -0.4% 2023 $28.87 125 4.1% 0.2% 24,200,507 13.3% -0.6% 2022 $27.72 120 0.3% -3.8% 25,279,297 14.0% -0.7% 2021 $27.64 120 -4.1% -4.1% 26,593,270 14.7% 2.0% YTD $28.76 125 -0.2% -0.2% 24,326,625 13.6% 0.8% 2020 $28.82 125 0% 0% 22,797,973 12.7% 2.8% 2019 $28.81 125 4.2% 0% 17,599,315 9.9% -0.5% 2018 $27.65 120 4.4% -4.1% 18,301,288 10.4% -0.1% 2017 $26.49 115 3.9% -8.1% 18,043,843 10.4% 0.2% 2016 $25.50 111 1.3% -11.5% 17,382,217 10.2% -0.2% 2015 $25.16 109 4.6% -12.7% 17,648,444 10.4% -0.7% 2014 $24.06 105 5.8% -16.5% 18,630,553 11.1% -0.7% 2013 $22.73 99 5.1% -21.1% 19,796,962 11.8% -0.7% 2012 $21.64 94 4.6% -24.9% 20,887,539 12.5% -0.2% 2011 $20.69 90 1.9% -28.2% 21,128,781 12.7% -0.7% 2010 $20.30 88 -1.8% -29.5% 22,171,638 13.4% -0.8% 2009 $20.67 90 -10.2% -28.3% 23,389,076 14.2% 1.1%

4 & 5 STAR RENT & VACANCY

Market Rent Vacancy

Year Per SF Index % Growth Vs Hist Peak SF Percent Ppts Chg 2025 $36.30 131 2.9% 6.7% 12,040,381 14.9% -0.3% 2024 $35.26 127 3.7% 3.7% 12,050,040 15.2% -0.4% 2023 $34 122 4.0% 0% 12,210,952 15.6% -0.7% 2022 $32.70 118 0.1% -3.9% 12,623,251 16.3% -1.3% 2021 $32.66 117 -4.0% -4.0% 13,550,637 17.6% 2.1% YTD $34.01 122 0% 0% 12,505,137 16.6% 1.2% 2020 $34.01 122 0.1% 0% 11,627,872 15.5% 4.2% 2019 $33.99 122 5.6% -0.1% 8,352,508 11.3% -1.4% 2018 $32.19 116 4.9% -5.4% 9,276,476 12.7% -0.5% 2017 $30.67 110 3.3% -9.8% 9,152,834 13.2% 1.6% 2016 $29.70 107 -1.5% -12.7% 7,794,632 11.6% 0.6% 2015 $30.14 108 3.8% -11.4% 7,279,969 10.9% -0.2% 2014 $29.03 104 6.1% -14.7% 7,257,190 11.1% -0.4% 2013 $27.37 98 4.1% -19.5% 7,390,507 11.5% -1.1% 2012 $26.28 95 5.8% -22.7% 8,006,442 12.6% 0.3% 2011 $24.83 89 3.1% -27.0% 7,750,989 12.3% -1.6% 2010 $24.09 87 -2.0% -29.2% 8,678,985 13.9% -1.8% 2009 $24.59 88 -11.6% -27.7% 9,596,835 15.7% 1.2%

4/5/2021 Copyrighted report licensed to Hoff & Leigh Colorado Springs, LLC - 1031464 Page 31 RENTRent & VACANCY & Vacancy DenverDenver Office Office

3 STAR RENT & VACANCY

Market Rent Vacancy

Year Per SF Index % Growth Vs Hist Peak SF Percent Ppts Chg 2025 $28.30 140 3.3% 7.6% 8,976,247 12.5% -0.2% 2024 $27.39 135 4.0% 4.2% 9,141,248 12.7% -0.4% 2023 $26.33 130 4.3% 0.2% 9,445,897 13.2% -0.7% 2022 $25.24 125 0.4% -4.0% 9,979,016 13.9% -0.4% 2021 $25.14 124 -4.4% -4.4% 10,243,059 14.3% 2.2% YTD $26.13 129 -0.6% -0.6% 9,303,298 13.0% 0.9% 2020 $26.29 130 0.5% 0% 8,652,315 12.1% 2.1% 2019 $26.16 129 3.2% -0.5% 7,096,788 9.9% -0.1% 2018 $25.35 125 3.8% -3.6% 7,160,375 10.0% 0.4% 2017 $24.42 120 4.3% -7.1% 6,916,836 9.7% -0.7% 2016 $23.42 115 4.2% -10.9% 7,350,987 10.4% -0.8% 2015 $22.48 111 5.6% -14.5% 7,890,769 11.2% -0.3% 2014 $21.28 105 5.4% -19.0% 8,046,554 11.5% -1.0% 2013 $20.20 100 6.0% -23.2% 8,725,666 12.5% -0.7% 2012 $19.06 94 3.6% -27.5% 9,229,589 13.2% -0.3% 2011 $18.39 91 1.1% -30.0% 9,403,748 13.5% 0.1% 2010 $18.18 90 -1.3% -30.8% 9,291,165 13.3% -0.3% 2009 $18.41 91 -9.2% -29.9% 9,533,299 13.6% 1.1%

1 & 2 STAR RENT & VACANCY

Market Rent Vacancy

Year Per SF Index % Growth Vs Hist Peak SF Percent Ppts Chg 2025 $23.73 135 3.2% 6.8% 2,428,405 7.9% 0% 2024 $23 131 4.0% 3.4% 2,466,790 8.0% -0.2% 2023 $22.12 126 4.3% -0.5% 2,543,658 8.1% -0.3% 2022 $21.21 121 0.4% -4.6% 2,677,030 8.5% -0.3% 2021 $21.13 120 -3.6% -5.0% 2,799,574 8.8% 0.9% YTD $21.95 125 0.1% -1.3% 2,518,190 7.8% 0% 2020 $21.92 125 -1.4% -1.4% 2,517,786 7.8% 1.2% 2019 $22.23 127 1.9% 0% 2,150,019 6.7% 0.9% 2018 $21.81 124 3.8% -1.9% 1,864,437 5.8% -0.3% 2017 $21 120 4.9% -5.5% 1,974,173 6.1% -0.8% 2016 $20.03 114 4.7% -9.9% 2,236,598 6.9% -0.7% 2015 $19.13 109 4.9% -14.0% 2,477,706 7.6% -2.5% 2014 $18.24 104 6.0% -18.0% 3,326,809 10.1% -1.0% 2013 $17.21 98 6.3% -22.6% 3,680,789 11.2% 0.1% 2012 $16.19 92 2.4% -27.2% 3,651,508 11.0% -0.9% 2011 $15.81 90 -0.6% -28.9% 3,974,044 12.0% -0.7% 2010 $15.90 91 -2.1% -28.5% 4,201,488 12.6% -0.1% 2009 $16.25 93 -7.4% -26.9% 4,258,942 12.7% 0.7%

4/5/2021 Copyrighted report licensed to Hoff & Leigh Colorado Springs, LLC - 1031464 Page 32 SALESale TRENDS Trends DenverDenver Office Office

OVERALL SALES

Completed Transactions (1) Market Pricing Trends (2)

Year Deals Volume Turnover Avg Price Avg Price/SF Avg Cap Rate Price/SF Price Index Cap Rate 2025 ------$252.41 178 7.1% 2024 ------$243.81 172 7.1% 2023 ------$232.60 164 7.1% 2022 ------$220.70 155 7.2% 2021 ------$221.31 156 7.2% YTD 95 $443.9M 1.2% $7,129,401 $216.48 6.9% $233.52 164 7.2% 2020 369 $2B 5.2% $9,236,605 $250.19 6.6% $233.23 164 7.2% 2019 443 $2.6B 8.0% $9,246,088 $193.94 6.9% $233.19 164 7.2% 2018 431 $3.2B 8.0% $11,768,152 $253.55 6.7% $234.30 165 7.0% 2017 463 $2.3B 7.1% $7,492,773 $199.30 7.1% $221.41 156 7.0% 2016 466 $2.1B 8.2% $6,304,166 $164.43 7.1% $215.60 152 6.9% 2015 467 $2.8B 9.7% $7,911,633 $179.35 7.2% $213.09 150 6.8% 2014 521 $2.7B 10.1% $7,706,178 $165.71 7.7% $201.31 142 6.9% 2013 456 $2.5B 9.3% $8,051,517 $172.16 7.6% $184.20 130 7.2% 2012 367 $1.7B 7.7% $7,298,614 $140.52 7.3% $169.76 120 7.5% 2011 322 $1.4B 5.8% $7,823,409 $156.70 7.0% $160.83 113 7.8% 2010 260 $829.8M 4.1% $5,393,009 $139.99 9.1% $141.45 100 8.5% (1) Completed transaction data is based on actual arms-length sales transactions and levels are dependent on the mix of what happened to sell in the period. (2) Market price trends data is based on the estimated price movement of all properties in the market, informed by actual transactions that have occurred.

4 & 5 STAR SALES

Completed Transactions (1) Market Pricing Trends (2)

Year Deals Volume Turnover Avg Price Avg Price/SF Avg Cap Rate Price/SF Price Index Cap Rate 2025 ------$309.44 172 6.8% 2024 ------$299.39 167 6.8% 2023 ------$286.06 159 6.8% 2022 ------$271.77 151 6.8% 2021 ------$272.77 152 6.9% YTD 10 $207.4M 1.3% $25,745,304 $212.32 6.2% $288.15 160 6.9% 2020 22 $1.3B 5.8% $108,670,343 $328.82 6.1% $288.11 160 6.9% 2019 46 $1.7B 10.3% $37,640,582 $228.71 6.1% $288.07 160 6.8% 2018 39 $2B 8.3% $68,544,951 $333.81 5.9% $296.20 165 6.6% 2017 36 $1.4B 7.2% $44,286,584 $290.33 6.5% $278.69 155 6.6% 2016 42 $1.2B 10.2% $36,322,011 $185.37 6.8% $270.50 150 6.5% 2015 40 $1.5B 10.0% $40,690,559 $235.82 6.9% $270.21 150 6.4% 2014 56 $1.8B 11.4% $42,032,099 $240.39 6.6% $255.91 142 6.5% 2013 47 $1.7B 12.9% $49,394,459 $222.95 6.8% $234.11 130 6.8% 2012 35 $1.2B 10.1% $52,517,214 $192.89 7.4% $216.57 120 7.0% 2011 54 $1B 8.6% $43,659,916 $206.56 6.5% $204.84 114 7.3% 2010 22 $484M 4.4% $37,183,093 $202.43 8.0% $179.96 100 7.9% (1) Completed transaction data is based on actual arms-length sales transactions and levels are dependent on the mix of what happened to sell in the period. (2) Market price trends data is based on the estimated price movement of all properties in the market, informed by actual transactions that have occurred.

4/5/2021 Copyrighted report licensed to Hoff & Leigh Colorado Springs, LLC - 1031464 Page 33 SALESale TRENDS Trends DenverDenver Office Office

3 STAR SALES

Completed Transactions (1) Market Pricing Trends (2)

Year Deals Volume Turnover Avg Price Avg Price/SF Avg Cap Rate Price/SF Price Index Cap Rate 2025 ------$218.27 181 7.3% 2024 ------$210.39 175 7.3% 2023 ------$200.35 166 7.3% 2022 ------$189.79 158 7.3% 2021 ------$190.10 158 7.4% YTD 43 $188.5M 1.2% $6,757,406 $225.27 7.3% $200.33 166 7.4% 2020 142 $460.3M 4.9% $5,697,686 $173.08 6.7% $199.82 166 7.4% 2019 166 $645.4M 6.5% $6,231,933 $152.38 7.0% $199.42 166 7.3% 2018 185 $949.4M 8.2% $9,034,267 $191.38 6.8% $195.97 163 7.2% 2017 181 $627.1M 6.8% $5,655,902 $136.72 7.2% $185.87 154 7.2% 2016 186 $689.6M 6.9% $5,965,130 $156.49 7.3% $181.97 151 7.1% 2015 197 $917.6M 9.8% $7,306,335 $139.93 7.5% $177.69 148 7.0% 2014 236 $748.5M 10.3% $5,210,098 $108.38 7.6% $168.55 140 7.1% 2013 180 $548.3M 6.9% $5,562,294 $122.04 7.9% $155.04 129 7.4% 2012 153 $373.1M 6.8% $4,942,176 $81.78 7.5% $142.66 119 7.7% 2011 141 $256.5M 4.2% $3,472,823 $96.57 7.0% $135.85 113 7.9% 2010 130 $261.2M 3.7% $4,523,455 $116.14 8.3% $119.40 99 8.7% (1) Completed transaction data is based on actual arms-length sales transactions and levels are dependent on the mix of what happened to sell in the period. (2) Market price trends data is based on the estimated price movement of all properties in the market, informed by actual transactions that have occurred.

1 & 2 STAR SALES

Completed Transactions (1) Market Pricing Trends (2)

Year Deals Volume Turnover Avg Price Avg Price/SF Avg Cap Rate Price/SF Price Index Cap Rate 2025 ------$189.86 193 7.6% 2024 ------$183.17 186 7.6% 2023 ------$174.52 177 7.6% 2022 ------$165.46 168 7.7% 2021 ------$165.81 168 7.7% YTD 42 $48M 1.0% $1,787,734 $202.61 7.0% $174.62 177 7.7% 2020 205 $201.2M 4.6% $1,564,037 $162.85 6.7% $174.26 177 7.7% 2019 231 $260.1M 6.2% $1,921,063 $150.22 7.1% $175.07 178 7.7% 2018 207 $273.5M 7.1% $1,928,793 $156.28 7.0% $169.29 172 7.6% 2017 246 $280.3M 7.9% $1,619,379 $127.38 7.3% $161.42 164 7.5% 2016 238 $231.7M 7.0% $1,209,959 $114.62 7.0% $157.07 160 7.4% 2015 230 $390.9M 8.9% $2,013,350 $142.22 6.9% $153.14 156 7.4% 2014 229 $210.1M 7.0% $1,204,765 $95.83 8.8% $141.58 144 7.5% 2013 229 $237.9M 7.5% $1,253,936 $103.23 8.0% $127.85 130 7.9% 2012 179 $130.1M 4.8% $969,465 $103.84 7.1% $116.35 118 8.3% 2011 127 $70.2M 4.0% $846,390 $67.06 7.9% $109.53 111 8.6% 2010 108 $84.6M 4.4% $1,000,527 $65.74 10.8% $97.01 99 9.4% (1) Completed transaction data is based on actual arms-length sales transactions and levels are dependent on the mix of what happened to sell in the period. (2) Market price trends data is based on the estimated price movement of all properties in the market, informed by actual transactions that have occurred.

4/5/2021 Copyrighted report licensed to Hoff & Leigh Colorado Springs, LLC - 1031464 Page 34 OFFICE MARKET REPORT Q1 2021 Denver, CO

RECENT OFFICE TRANSACTIONS

5420 S Quebec St, Unit 106 36 Garden Center 6909 S Holly Circle, Unit 250 $380,000 $850,000 $169,000 SIZE TERMS SIZE TERMS SIZE TERMS 2,161 SF FOR SALE 7,000 SF FOR SALE 827 SF FOR SALE

DENVER AGENTS

BRANDON LANGIEWICZ SHANE ROBSON ISAIAH MAYFIELD PARTNER VICE PRESIDENT BROKER ASSOCIATE 715.512.0265 512.450.8203 574.216.6149 [email protected] [email protected] [email protected]

BEAU HERSHBERGER CHRIS ISBELL ROB ASH SENIOR BROKER BROKER ASSOCIATE BROKER ASSOCIATE 303.667.2530 480.285.8751 720.560.5651 [email protected] [email protected] [email protected]

OUR NETWORK IS YOUR EDGE. PREPARED BY:

All information is from sources deemed reliable and is subject to errors,omissions, change of price, rental, prior sale, and withdrawal without notice. Prospect should Brandon Langiewicz carefully verify each item of information contained herein. Partner

Hoff & Leigh | 3141 S Broadway, Suite A | Denver, CO 80113 | 720.572.5187 office www.hoffleigh.com/denver