Lake Union Submarket

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Lake Union Submarket Company Occupied SF Big Tenants Dominate Amazon 4,802,000 Fred Hutchinson 1,333,000 15.8M Some of us remember when the big tenants in “sleepy” Lake Union were Washington Natural Facebook 871,000 Gas were, PEMCO and the Seattle Times. Many of us were crushed when voters rejected the Seattle Commons project to bring a 61-acre park to the area and stimulate growth. Google 607,000 Clearly, the growth has been substantial despite the lack of a major park. Lake Union’s office Apple 605,000 Total inventory has doubled since 2010 and vacancy has steadily declined in that period. There UW School of Medicine 448,000 Inventory are 12 tenants in the submarket who are over 100,000 SF. These tenants collectively occupy 9.6M SF of space (61% of the market). Amazon occupies half of the space, which is 4.8M Juno Therapeutics 267,000 SF. Yes, Amazon does have over 13M SF of space in downtown Seattle, but most of it Tableau Software 204,000 isn’t in Lake Union, even though we all think of this being their primary location. Of the 12 Adaptive Biotechnologies 166,000 1.1M tenants, six are life science or medical companies, five are technology companies, and one The Seattle Times Company 123,000 is the aforementioned Seattle Times, although the long-time tenant occupies a much smaller footprint than it did 20 years ago. Five of the companies are over 500,000 SF, and with the Gilead Sciences 110,000 exception of Fred Hutch, none of them had space in the Lake Union area 15 years ago. Dendreon Corporation 100,000 Total 9,636,000 Under Construction

Q1 2020 Owner / Non-Owner Occupied Q1 2020 Tenants with over 100K SF

Owner Occupied SF 3,848,000 24.4% Tenants with over 100K SF* 9,636,000 61.1% 2.5% Non-Owner Occup. SF* 11,932,000 75.6% Remaining SF 6,144,000 38.9%

15,780,000 100.0% Total Market 15,780,000 100.0% * Includes unknown * Cumulative footprint; Includes sub-100K SF leases across multiple properties Total Vacancy HISTORICAL DATA Inventory Vacancy Under Direct Y-o-Y Rent Average Market Cap 12-mo Net Period SF SF Construction SF Gross Rent Growth Sales $/SF Rate Absorption

Q1 2020 15,780,184 2.5% 1,052,629 $42.03 3.7% $707 4.9% 1,197,287 12

Q1 2019 13,983,796 3.0% 1,802,951 $39.08 6.9% $684 4.9% 638,683

Q1 2018 13,567,073 4.7% 2,219,674 $39.53 6.7% $637 5.0% 890,603 Tenants Occupy Q1 2017 13,108,868 8.1% 2,439,364 $38.17 7.3% $598 5.1% 1,642,628 100k+ space Q1 2016 11,584,234 10.2% 1,814,745 $35.44 10.2% $567 5.1% 1,051,760

Kinzer Partners // Lake Union Submarket A

N 4nd St N 42ND STREET

N 41st St N 41st St

N 40th St NE Ccmpus Parkway N 40th St

NE 40th ST N 39th St NE Pacific St N 39th St

NE PACI FREMONT Pacific St

Linden Ave N Ave Linden N 38th St Northlake Way N N 38th St

Lake Union Submarket Sunnyside N Ave Dayton N Ave 99 N 37th ST Whitman Ave N

36th ST N 35th St Evanston N Ave Woodland Park N Ave

Bright Future Fremont N Ave N 34th St 5

Northlake Way N

We expect this submarket to continue to outperform the rest of downtown Seattle in terms of N Wallingford Ave vacancy, rent growth and absorption. We also anticipate large tenants continuing to grow at a PORTAGE North Lake Union BAY

faster pace than the rest of the market. While no one really knows what the post-Covid-19 world Gas Works Park is going to look like for commercial real estate, we do expect companies that are tied to online retail, the cloud, and life sciences, will be the growth leaders in the future. On the construction front, while only 10% of the 1.1M SF has been leased, none of the projects that haven’t been West Lake Union leased come on line for a year and a half. The one major project that’s under construction and McGraw St EAST Lynn St QUEEN ANNE hasn’t been leased is Dexter Yard, but we would expect it will be leased by one of the large Lynn ST

N 9th Ave Ave 9th N East Lake Union tenants in the submarket before its completion, which is anticipated to be 2021 (see matrix on Boston ST Crockett St following page). Newt on St E Ho we St

Blaine Lake Union Class A Blaine St E Hayes Lake

N 8th Ave Garfield St Under Construction & Building Inventory Garfield Union 7.0 M 35 Galer St 2 6.0 M 30

Highland St WsetlakeN Ave Prospect St 25 Eastlake Ave E 5.0 M Ward St

Ward ST CAPITOL HILL 99 Aloha St W 5TH AVENUE W 4TH AVENUE Aloha St Taylor Ave N 5th N Ave 4.0 M 4th N Ave 6th N Ave 20 Valley St LOWER Valley St QUEEN ANNE Roy St Roy St 3.0 M 1 15 Mercer St Mercer St 99 South Lake Union Square Feet Boylston Ave Harvard Ave Broadway E E Belmont Pl Summit E Ave Republican St Bellevue E Ave 2.0 M 10 West Lake Union Harrison St Class A Building Count

Broad St Center 1.0 M 5 Seattle Thomas St South Lake Union East Lake Union Westlake N Ave Minor N Ave Pontius N Ave Terry Ave N Terry Ave Dexter N Ave Fairview N Ave Yale Ave N Ave Yale John St EastEastlake Ave 0.0 M 0 North Lake Union

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 NORTH Denny St YTD Clay St Under Construction SF Total SF Buildings 99

Cedar St Minor Ave Minor

Vine St Boren Ave Boren GEOGRAPHIC AREAS OF LAKE UNION MARKET Wall St Howell St

Bell St Olive Way Westlake Ave N

Y-o-Y RentBlanchard St

Under AverageAve 9th Market

8th Ave 8th ALASKAN WAY ALASKAN

ELLIOT AVENUE ELLIOT Lenora St Area Inventory SF Vacancy Construction SF Growth SalesAVe 7th $/SF Cap Rate

Virginia St 6th Ave 6th Pine Street

South Lake Union 10,244,219 1.5% 946,629 3.8% AVE 5TH $754 4.8%

East Lake Union 3,210,095 3.5% 106,000 3.3% $597 5.1%

West Lake Union 1,716,408 7.3% 0 3.8% $651 5.0%

North Lake Union 609,462 0.0% 0 3.6% $654 5.2%

Total - Lake Union 15,780,184 2.5% 1,052,629 3.7% $707 4.9% Note: Includes all classes for existing, U/C, U/R

Kinzer Partners // Lake Union Submarket Lake Union Submarket Projects Under Construction

1165 Eastlake Cascadian Dexter Yard 400 Westlake 1165 Eastlake Ave E 330 Yale Ave N 700 Dexter Ave N 400 Westlake Ave 106,000 RSF 211,066 RSF 500,000 RSF 229,000 RSF 100% Leased 0% Leased 0% Leased 0% Leased

2020 2021

CLASS A / UNDER CONSTRUCTION

Total Available Percent Anticipated Property Address RSF Space (SF) Tenant Leased Completion Developer 1165 Eastlake Adaptive Alexandria 1165 Eastlake Building 106,000 N/A 100% Q4 2020 Ave E Biotechnologies Real Estate Unico Cascadian 330 Yale Ave N 211,066 211,066 N/A 0% Q3 2021 Properties Biomed Dexter Yard 700 Dexter Ave N 500,000 500,000 N/A 0% Q4 2021 Realty Martin Selig 400 Westlake 400 Westlake Ave 229,000 229,000 N/A 0% Q4 2021 Real Estate

TOTAL 1,046,066 940,066 10%

Kinzer Partners // Lake Union Submarket