Boulder Q1 2021

OFFFICE MARKET REPORT

SM FULL-SERVICE COMMERCIAL REAL ESTATE SOLUTIONS PRIVATELY-OWNED AND OPERATED FOR OVER 40 YEARS 303.321.5888 UNIQUEPROP.COM Boulder Office

OFFICE MARKET REPORT

Market Key Statistics 1 Leasing 2 Rent 6 Construction 8 Under Construction Properties 9 Sales 10 Sales Past 12 Months 12 Economy 14 Market Submarkets 19 Supply & Demand Trends 21 Rent & Vacancy 23 Sale Trends 25

4/21/2021 Copyrighted report licensed to Unique Properties, Inc. - 1130503 Overview Boulder Office

12 Mo Deliveries in SF 12 Mo Net Absorption in SF Vacancy Rate 12 Mo Rent Growth 150K (521K) 10.2% -1.5%

Due in part to a supply wave that began in 2016, both nationally), one of the best performances in the Front the vacancy and availability rates in Boulder have faced Range. upward pressure for some time, but remained below their long-term average before the pandemic. Investment activity has slowed to a crawl due to the uncertain economic environment moving forward. Several Like most of Colorado, rent growth showed signs of major institutional investors have made big plays here moderation before the pandemic. At the end of 2020, over the last few years, driving historic sales volume, and annual rent growth was down by 2.3%. Nevertheless, 2019 was the second-biggest volume year of the years of outsized increases have propelled rents to about expansion. Goldman Sachs acquired several office 35% above the pre-2010 peak (compared to about 15% buildings in Boulder as part of a broader portfolio deal.

KEY INDICATORS

Net Absorption Under Current Quarter RBA Vacancy Rate Market Rent Availability Rate Deliveries SF SF Construction 4 & 5 Star 3,070,293 9.0% $41.01 13.0% 73,289 70,334 52,000 3 Star 10,769,987 10.2% $29.85 16.7% 30,600 0 173,646 1 & 2 Star 5,669,863 10.7% $27.10 14.9% (25,776) 0 0 Market 19,510,143 10.2% $30.82 15.6% 78,113 70,334 225,646

Historical Forecast Annual Trends 12 Month Peak When Trough When Average Average Vacancy Change (YOY) 3.4% 9.7% 10.3% 16.5% 2003 Q3 4.5% 2000 Q2 Net Absorption SF (521K) 209,817 132,192 1,447,209 2000 Q4 (588,515) 2021 Q1 Deliveries SF 150K 283,947 184,310 1,414,363 2000 Q4 0 2015 Q2 Rent Growth -1.5% 1.2% 1.2% 10.3% 2015 Q4 -7.7% 2002 Q4 Sales Volume $139M $144.7M N/A $559.1M 2017 Q3 $25.7M 2009 Q3

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Roughly 20% of Boulder's office-using employment is finding top-class tech talent given its decision to expand. tied to the high tech or information sectors, on par with In 2019, the firm made a similar transition in Denver. The San Francisco's, and behind only San Jose's nationally. firm signed a lease for about 100,000 SF near Union Unsurprisingly, the Boulder office market derives an Station and will be moving from about 40,000 SF at a unusually large amount of its demand from tenants WeWork location. connected to the tech sector. A supply wave is imminent and includes two of the Boulder has attracted expansions from the giants of the largest purely spec office developments this cycle. One tech industry. Amazon recently moved into a new 37,000 is the office component of the mixed-use RÊVE SF space at 1900 15th Street in Downtown Boulder. At development, which is on track to deliver in 21Q2 and the time the lease was signed, the space had been contains just over 100,000 SF of speculative office marketed at one of the highest price points in the metro, space. $32-35/SF NNN. The mixed-use S*Park development's 42,000 SF office Amazon's new space will house a multi-channel component was fully leased by big data Software firm advertising division. Prior to leasing this space, the Splunk shortly before the building's early 2019 division had been operating out of a shared workspace. completion. Amazon may have been testing its ability to find talent in a tight labor market, and ostensibly had success in

NET ABSORPTION, NET DELIVERIES & VACANCY

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VACANCY RATE

AVAILABILITY RATE

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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 S'park Boulder 70,334 5,236 0 65,098 0 0 65,098 Lafayette Corp. Campus Boulder County 80,132 0 0 0 0 0 61,639 Centennial Valley Boulder County 69,148 0 0 46,654 0 0 46,654 Parkway Tech Center Boulder County 40,000 0 0 0 0 0 40,000 Alexan Flatirons - Office Boulder 32,553 0 0 0 0 0 25,040 East Park Boulder 24,686 1,684 5,149 0 0 0 20,619 Creekside Business Park (1) Boulder County 72,281 0 0 0 0 0 20,075 Creekside Business Park (2) Boulder County 85,438 17,001 0 0 0 0 16,867 Office Boulder 18,666 0 0 0 0 0 14,750 1011 Walnut St Boulder 24,911 0 7,642 0 0 0 13,520 Pearl East Business Park Boulder 43,500 0 0 0 0 0 12,025 1690 38th St Boulder 23,964 11,982 0 0 0 0 11,982 340 Exempla Cir Med Pavilion &… Boulder County 74,032 25,662 0 0 0 0 11,354 Avista One Medical Plaza Boulder County 37,800 0 0 0 0 0 9,955 Colorado Tech Center Boulder County 40,549 11,073 7,720 0 0 0 7,720 Front Range Office Park Longmont 104,805 53,512 0 0 0 0 6,955 DeLo Boulder County 31,637 1,437 0 0 0 0 6,683 Subtotal Primary Competitors 874,436 127,587 20,511 111,752 0 0 390,936 Remaining Boulder Market 18,635,707 1,857,930 (114,092) (33,639) 0 0 (912,052) Total Boulder Market 19,510,143 1,985,517 (93,581) 78,113 0 0 (521,116)

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TOP OFFICE LEASES PAST 12 MONTHS

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

833 W South Boulder Rd Boulder County 138,502 Q3 20 Gaia - -

Centennial Valley Boulder County 46,654 Q4 20 Peaksware - CBRE

Centennial Valley Boulder County 26,499 Q2 20 Alchemer Cresa CBRE

1650 Canyon Blvd Boulder 17,940 Q3 20 - JLL The W.W. Reynolds Co…

Flatiron Park Boulder 14,289 Q2 21 - - Dean Callan & Compan…

Pearl West * Boulder 13,010 Q1 21 The Trade Desk, Inc - JLL

Pearl East Business Park Boulder 12,885 Q3 20 - - The W.W. Reynolds Co…

1690 38th St Boulder 11,982 Q3 20 Spire CBRE Market Real Estate

Pearl East Business Park Boulder 10,300 Q2 20 Kjus - The W.W. Reynolds Co…

Canyon Center Boulder 10,185 Q2 20 Honey Science LLC The Colorado Group… CBRE

Pearl East Business Park Boulder 9,812 Q2 20 University of Colorado JLL The W.W. Reynolds Co…

Flatiron Park West Boulder 8,752 Q2 20 - - Cushman & Wakefield

FlatIrons North Boulder 8,487 Q1 21 - - Cushman & Wakefield

Frontier Boulder 7,739 Q1 21 - - The W.W. Reynolds Co…

1011 Walnut St Boulder 7,642 Q1 21 - - Keys Commercial Real…

1050 Walnut St Boulder 7,521 Q1 21 - - CBRE

Tierra Centre Boulder 7,517 Q3 20 - - The W.W. Reynolds Co…

1206 Euclid Ave Boulder 7,387 Q2 20 - - The Colorado Group, Inc.

2617 Broadway St Boulder 7,114 Q4 20 Crossfit, LLC Keys Commercial R… The Colorado Group, Inc.

Platinum Bldg Boulder 7,074 Q4 20 - - Gibbons-White, Inc.

Flatiron Park Boulder 6,950 Q1 21 - - Gibbons-White, Inc.

Superior Pointe Office Pk Boulder County 6,881 Q2 20 - - Newmark

2100 Central Ave Boulder 6,722 Q2 21 Longpath Technologies LLC - Dean Callan & Compan…

Continental Bldg Boulder 6,502 Q4 20 - - The W.W. Reynolds Co…

The Point II Boulder 6,393 Q1 21 - - O'Connor Group of Co…

2300 Broadway St Boulder 6,004 Q3 20 BSW Wealth Partners The Colorado Group… Market Real Estate

Canyon Center Boulder 5,921 Q2 20 - - CBRE

1110 Boston Ave Longmont 5,840 Q3 20 Whitewater West Industrie… - Regel & Associates LLC

2010 8th St Boulder 5,165 Q1 21 - - Tebo Properties

4775 E Walnut St Boulder 4,721 Q2 20 The Electric Tobacconist,… - Dean Callan & Compan…

LaVista Business Park Boulder 4,630 Q1 21 - - Gibbons-White, Inc.

Center Green Office Park Boulder 4,628 Q3 20 - LesseeCRE -

1157 W Century Dr Boulder County 4,628 Q4 20 - - The Colorado Group, Inc.

1300 Walnut St Boulder 4,291 Q3 20 Backbone PLM, Inc Savills CBRE

Iris Office Park Boulder 4,159 Q1 21 - - Gibbons-White, Inc.

2011 Cherry St Boulder County 3,964 Q4 20 - - WK Real Estate

Pearl Street Cove Condominiums Boulder 3,955 Q1 21 - - Gibbons-White, Inc.

Art Mart Boulder 3,813 Q3 20 - - Tebo Properties

Steel Yards Boulder 3,748 Q2 20 - - Gibbons-White, Inc.

Pearl Street Mall Boulder 3,704 Q1 21 - - The Colorado Group, Inc. Renewal

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Office rents in Boulder are down by -1.5% annually. end of the market and an abundance of available space. Before the pandemic, rents here surpassed their Great Rents for 4 & 5 Star office space has cooled dramatically Recession highs by about 35%, the best performance in since 2018, declining by roughly 900 basis points from the Front Range, and one of the best performances the peak in 18Q4. Although leasing at high-end nationally. developments has been strong, the 4 & 5 Star availability rate rose about 300 basis points in the past two years. The slowdown speaks to supply pressure in the high-

MARKET RENT GROWTH (YOY)

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MARKET RENT PER SQUARE FEET

4 & 5 STAR EXPENSES PER SF (ANNUAL)

Market / Cluster Utilities Cleaning Insurance Taxes Other Total Boulder $0.54 $1.07 $0.19 $6.52 $5.36 $13.68 Boulder $0.55 $1.07 $0.19 $6.63 $5.40 $13.84 Longmont $0.46 $0.97 $0.15 $4.60 $4.70 $10.88 Expenses are estimated using NCREIF, Trepp, IREM, and CoStar data using the narrowest possible geographical definition from Zip Code to region.

3 STAR EXPENSES PER SF (ANNUAL)

Market / Cluster Utilities Cleaning Insurance Taxes Other Total Boulder $0.46 $0.90 $0.12 $6.04 $3.18 $10.70 Boulder $0.46 $0.91 $0.12 $6.20 $3.15 $10.84 Longmont $0.45 $0.88 $0.12 $4.90 $3.37 $9.72 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 Boulder $0.42 $0.56 $0.11 $6.98 $3.08 $11.15 Boulder $0.42 $0.56 $0.11 $7.73 $3.42 $12.24 Longmont $0.42 $0.55 $0.11 $4.47 $1.92 $7.47 Expenses are estimated using NCREIF, Trepp, IREM, and CoStar data using the narrowest possible geographical definition from Zip Code to region.

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Boulder's construction pipeline has thinned substantially, A two-year moratorium that passed in spring 2015 with only one project breaking ground since 19Q4. Still, a further capped most projects at 35, 38, or 40 feet. In wave of new supply is on track to deliver in mid-2021, March 2017, a 15-month extension of the 2015 which will add even more available space to the market. moratorium was passed, and in June 2018 the restriction was extended through 2020. Developers attempting to RÊVE Boulder, a 148,500 mixed-use development, is build in the city of Boulder will have to navigate these scheduled to deliver in May. The development is located restrictions for at least the near term. at 2100 30th St, directly across from Google's newly- constructed campus. The project will include office Boulder has a significant number of high-tech space, 242 apartment units, and ground floor retail companies with hardware and/or R&D operations. As space. such, the metro has significant demand for flex space that serves these tenants. Boulder has about 19 million While developers have targeted the city of Boulder itself SF of office space and 12 million SF of flex space, or an thanks in part to sky-high rent prospects, it's not an easy office-flex ratio of 1.5 to 1. Nationally, the office to flex city to build in. New projects in the city of Boulder are ratio is about 5 to 1. San Jose is the only metro area in constrained by a height-limit ordinance dating back to the country with a higher relative concentration of flex the 1970s that restricts buildings to no more than 55 feet. space.

DELIVERIES & DEMOLITIONS

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 Boulder 3 226 79 35.1% 1 20,356 75,215 1 2 Boulder County 0 - - - - 18,275 - - 3 Longmont 0 - - - - 10,617 - - Totals 3 226 79 35.1% 18,043 75,215

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Properties Square Feet Percent of Inventory Preleased 3 225,646 1.2% 35.1%

UNDER CONSTRUCTION PROPERTIES

UNDER CONSTRUCTION

Property Name/Address Rating Bldg SF Stories Start Complete Developer/Owner RÊVE Boulder Southern Land Company 1 148,500 4 Sep 2018 May 2021 2100 30th St Southern Land Company Phase II Morgan Creek Ventures 2 52,000 4 Oct 2019 May 2021 2530 Junction Pl Morgan Creek Ventures 1650 Canyon Blvd The W.W. Reynolds Companies,… 3 25,146 3 Jan 2021 Jul 2021 -

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With the exception of 19Q4, quarterly sales volume has tenants including Garmin, WSP, and Magic Leap. been tempered since the highs experienced in late 2016 Graham Street Realty also sold 2945 Wilderness Pl in through early 2018. Investment activity slowed even January to Nuveen Global Cities REIT for $12.9 million more since the pandemic struck as lenders and investors ($440/SF). The 29,310 SF building was 100% leased at take a wait-and-see approach. Investment sales totaled the time of sale. just $133 million in 2020, compared with $282 million recorded in 2019. 21Q1 sales volume reached $56 Boulder attracts an atypically high amount of institutional million, and this number is likely to rise as CoStar investment for a smaller office market, and cap rates are researchers continue to input deals. competitive here as a result. Out of roughly 300 metro areas with an office inventory of less than 25 million SF, The biggest trade of 21Q1 was Gibbons-White's Boulder's market-wide cap rate was recently the fourth acquisition of 5665 Flatiron Pky from Graham Street lowest. Realty for $13.5 million ($324/SF) in March. The 41,655 SF building was 100% leased at the time of sale to

SALES VOLUME & MARKET SALE PRICE PER SF

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MARKET CAP RATE

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Sale Comparables Avg. Cap Rate Avg. Price/SF Avg. Vacancy At Sale 74 6.4% $226 5.6%

SALE COMPARABLE LOCATIONS

SALE COMPARABLES SUMMARY STATISTICS

Sales Attributes Low Average Median High Sale Price $149,000 $3,530,588 $2,000,000 $13,500,000

Price/SF $31 $226 $312 $938

Cap Rate 5.0% 6.4% 6.0% 7.9%

Time Since Sale in Months 0.0 4.7 4.5 12.0

Property Attributes Low Average Median High Building SF 802 17,159 8,700 143,000

Stories 1 2 2 5

Typical Floor SF 1 9,040 4,837 71,500

Vacancy Rate At Sale 0% 5.6% 0% 100%

Year Built 1900 1969 1982 2019

Star Rating 2.4

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RECENT SIGNIFICANT SALES

Property Sale

Property Name - Address Rating Yr Built Bldg SF Vacancy Sale Date Price Price/SF Cap Rate 5665 Flatiron Pky 1 - 1982 41,655 0% 3/3/2021 $13,500,000 $324 -

833 W South Boulder Rd 2 - 1983 143,000 0% 9/15/2020 $13,150,000 $184 -

2945 Wilderness Pl 3 - 1975 29,301 0% 1/22/2021 $12,900,000 $440 -

DeLo 4 - 2018 31,637 15.2% 9/3/2020 $12,000,000 $379 6.8% 1025 Cannon St 777 29th St 5 - 1982 18,102 36.1% 2/25/2021 $7,750,000 $428 -

250 Arapahoe Ave 6 - 1973 19,266 0% 12/1/2020 $7,690,000 $399 -

Front Range Community… 7 - 1988 25,500 0% 4/5/2021 $5,369,139 $211 - 2190 Miller Dr Covidien Bldg 8 - 2008 60,200 0% 11/4/2020 $5,167,453 $86 - 4850 Longbow Dr 6899 Winchester Cir 9 - 2001 38,848 0% 12/17/2020 $4,981,341 $128 -

Covidien Building 7 10 - 1982 40,000 0% 11/4/2020 $4,674,384 $117 - 5920 Longbow Dr 965 Broadway St 11 - 1923 11,466 100% 11/23/2020 $3,500,000 $305 -

2805 Broadway St 12 - 1983 13,734 0% 3/10/2021 $3,365,000 $245 -

Walnut Court 13 - 1979 6,547 0% 12/16/2020 $3,220,000 $492 - 1002 Walnut St 4700 Sterling Dr 14 - 1983 19,620 0% 10/15/2020 $3,000,000 $153 -

2737 Mapleton Ave 15 - 1984 6,829 0% 8/31/2020 $2,600,000 $381 -

1240-1244 Pine St 16 - 1900 4,123 0% 3/26/2021 $2,454,000 $595 -

U.S. Postal Office 17 - 2019 5,796 0% 1/14/2021 $2,412,200 $416 - 621 Mitchell Way Bishop & Takemoto Dent… 18 - 1977 6,406 41.1% 1/29/2021 $2,150,000 $336 - 4840 Riverbend Rd 2129 13th St 19 - 1900 3,688 0% 1/4/2021 $2,000,000 $542 -

1717 Folsom St 20 - 1970 3,174 0% 1/6/2021 $1,961,500 $618 -

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Boulder developed into a dynamic economy in the past average over the last five years, and have increased at decade, and job growth outperformed the national an annual rate north of 8% in every quarter since the benchmark for the virtual entirety of the last cycle leading start of 2014. up to the coronovirus pandemic. The Boulder MSA lost 25,000 jobs when the economy shut down in March of A number of different industries have contributed to this last year. According to the latest employment figures growth, but high tech companies continue to grab most from February, Boulder has reclaimed about 10,000 of of the headlines, and for good reason. Tech companies those jobs. The unemployment rate is down to 5.7% as have flourished in Boulder thanks to a well-developed of February after peaking at 9.6% in June of last year. infrastructure that stems from a synergistic relationship with the University of Colorado. Firms looking to hire Affordability is an increasing concern, and likely a have no shortage of qualified graduates from which to predominant factor in the population growth slowdown choose, although the labor market—both in Boulder and observed over the past two years. Population data in the broader Colorado Front Range—has been released in September 2018 pegged 2017 population exceptionally tight for years. growth at a mere 0.4%, down from 1.0% in 2016. From 2011 to 2015, the population grew by an average of The amount of flex space in Boulder speaks to how 1.5% per year. Meanwhile, population growth held steady important the tech sector is to the economy. Flex space, in more affordable Northern Colorado metros. Greeley which draws demand from high-tech tenants needing (Weld County) posted 3.5% population growth for a both office and R&D space, represents just over half of second straight year in 2017, a cyclical high. Fort Collins the entire industrial stock. San Jose is the only other saw its population rise by 1.6% in 2017, virtually metro in the country where flex space comprises at least unchanged from the 1.7% increase the prior year. half of the industrial stock.

Notably, much of the explosive growth in the Greeley Several Fortune 500 companies also help solidify the metro is occurring in far southwest Weld County, economy, including GE, IBM, Lockheed Martin, and bordering Longmont, and easily within commuting Qualcomm. Google, which employed three or four distance to central Boulder. Cities here such as Erie, hundred employees in the metro earlier in the cycle, now Firestone, and Frederick each saw cumulative population employs upwards of 1,000 and is actively expanding with growth of 22% or more over the past five years, and the completion of its 200,000-SF campus. The firm residential development is exploding. bought the first phase of its campus in a record-breaking deal, and further made its commitment to the area clear A takeaway from the growth in Weld County is that by announcing plans to move forward with a 100,000-SF affordable housing options are being created in expansion of the campus. close—and commutable—proximity to the city of Boulder. This should facilitate economic expansion, and act as Amazon, Uber, and Twitter also have a presence in the some counter to the headwinds posed by the difficulty of metro, and the high tech backbone should continue to be residential building (and increasing lack of affordable an important source of high-paying job growth in options) in the city of Boulder itself. Boulder. Of course, there's always the possibility of being overly exposed to a certain sector, and high tech and Housing prices are a staggering 75% of the peak of the information jobs do account for about 20% of office- last cycle. According to the Federal Housing Finance using employment, in the neighborhood of San Agency's All-Transactions House Price Index, home Francisco's level. prices have increased by more than 10% annually on

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BOULDER 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 21 1.3 1.66% -1.99% 2.79% 0.51% -0.20% 0.35% Trade, Transportation and Utilities 26 0.7 0.54% -0.25% 1.47% 0.89% 0.71% 0.53% Retail Trade 17 0.9 1.43% 0.71% 0.96% 0.45% 0.65% 0.42% Financial Activities 8 0.7 1.35% -0.27% 0.42% 1.34% 0.86% 0.59% Government 34 1.2 -12.34% -4.48% 0.88% -0.33% 3.74% 0.97% Natural Resources, Mining and Construction 6 0.5 -0.73% -1.58% 3.29% 2.53% 1.19% 1.02% Education and Health Services 25 0.8 -2.59% -2.31% 2.16% 1.48% 2.47% 1.79% Professional and Business Services 40 1.5 3.89% -0.85% 3.10% 1.89% 1.14% 1.42% Information 8 2.4 -3.52% -4.99% -0.42% 0.08% 0.36% 2.30% Leisure and Hospitality 15 0.9 -20.63% -10.26% -1.25% 0.29% 6.47% 4.39% Other Services 6 0.9 -0.97% -2.56% 1.39% 0.31% 1.11% 1.15% Total Employment 188 1.0 -4.00% -2.74% 1.55% 0.90% 2.04% 1.39% Source: Oxford Economics LQ = Location Quotient

YEAR OVER YEAR JOB GROWTH

Source: Oxford Economics

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UNEMPLOYMENT RATE (%)

NET EMPLOYMENT CHANGE (YOY)

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MEDIAN HOUSEHOLD INCOME

POPULATION GROWTH (YOY %)

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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 326,765 330,010,125 0% 0.2% 0.9% 0.6% 0.5% 0.5% Households 131,960 123,297,680 0% 0.1% 1.0% 0.7% 0.4% 0.4% Median Household Income $95,901 $73,171 6.1% 8.8% 4.2% 3.9% 2.9% 1.8% Labor Force 193,958 160,443,156 -1.3% -1.3% 1.3% 0.5% 0.8% 0.7% Unemployment 5.5% 6.2% 1.1% 0.2% -0.1% -0.3% - - Source: Oxford Economics

POPULATION GROWTH LABOR FORCE GROWTH INCOME GROWTH

Source: Oxford Economics

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BOULDER SUBMARKETS

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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 Boulder 619 12,601 64.6% 1 3 110 0.9% 1 3 226 1.8% 1 2 Boulder County 261 4,770 24.5% 2 1 40 0.8% 2 0 - - - 3 Longmont 201 2,134 10.9% 3 0 0 0% - 0 - - -

SUBMARKET RENT

Market Rent 12 Month Market Rent QTD Annualized Market Rent

No. Submarket Per SF Rank Growth Rank Growth Rank 1 Boulder $32.92 1 -1.3% 1 4.4% 1 2 Boulder County $28.10 2 -1.7% 3 4.0% 2 3 Longmont $24.31 3 -1.7% 2 3.9% 3

SUBMARKET VACANCY & NET ABSORPTION

Vacancy 12 Month Absorption

No. Submarket SF Percent Rank SF % of Inv Rank Construc. Ratio 1 Boulder 1,449,800 11.5% 3 (614,151) -4.9% 3 - 2 Boulder County 348,156 7.3% 1 151,377 3.2% 1 0.3 3 Longmont 187,561 8.8% 2 (58,342) -2.7% 2 -

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OVERALL SUPPLY & DEMAND

Inventory Net Absorption

Year SF SF Growth % Growth SF % of Inv Construction Ratio 2025 20,319,977 241,018 1.2% 265,682 1.3% 0.9 2024 20,078,959 207,847 1.0% 253,600 1.3% 0.8 2023 19,871,112 130,587 0.7% 202,082 1.0% 0.6 2022 19,740,525 11,501 0.1% 157,248 0.8% 0.1 2021 19,729,024 289,215 1.5% (45,318) -0.2% - YTD 19,510,143 70,334 0.4% (15,468) -0.1% - 2020 19,439,809 290,623 1.5% (270,988) -1.4% - 2019 19,149,186 99,283 0.5% 171,808 0.9% 0.6 2018 19,049,903 460,199 2.5% 603,257 3.2% 0.8 2017 18,589,704 370,360 2.0% 81,491 0.4% 4.5 2016 18,219,344 296,981 1.7% 91,875 0.5% 3.2 2015 17,922,363 30,971 0.2% (23,730) -0.1% - 2014 17,891,392 (46,679) -0.3% 103,502 0.6% - 2013 17,938,071 89,484 0.5% 212,666 1.2% 0.4 2012 17,848,587 (9,721) -0.1% 427,162 2.4% - 2011 17,858,308 43,500 0.2% 255,181 1.4% 0.2 2010 17,814,808 (15,326) -0.1% (75,318) -0.4% - 2009 17,830,134 (30,391) -0.2% 210,335 1.2% -

4 & 5 STAR SUPPLY & DEMAND

Inventory Net Absorption

Year SF SF Growth % Growth SF % of Inv Construction Ratio 2025 3,770,182 255,297 7.3% 231,716 6.1% 1.1 2024 3,514,885 222,067 6.7% 189,351 5.4% 1.2 2023 3,292,818 144,774 4.6% 106,533 3.2% 1.4 2022 3,148,044 25,751 0.8% 21,647 0.7% 1.2 2021 3,122,293 122,334 4.1% 77,782 2.5% 1.6 YTD 3,070,293 70,334 2.3% 54,132 1.8% 1.3 2020 2,999,959 294,595 10.9% 263,342 8.8% 1.1 2019 2,705,364 93,487 3.6% 79,630 2.9% 1.2 2018 2,611,877 182,600 7.5% 164,317 6.3% 1.1 2017 2,429,277 242,000 11.1% 301,563 12.4% 0.8 2016 2,187,277 180,000 9.0% 46,571 2.1% 3.9 2015 2,007,277 29,451 1.5% (36,446) -1.8% - 2014 1,977,826 0 0% (4,442) -0.2% - 2013 1,977,826 0 0% 21,032 1.1% 0 2012 1,977,826 0 0% 73,840 3.7% 0 2011 1,977,826 0 0% 95,599 4.8% 0 2010 1,977,826 0 0% (102,372) -5.2% - 2009 1,977,826 0 0% (23,050) -1.2% -

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3 STAR SUPPLY & DEMAND

Inventory Net Absorption

Year SF SF Growth % Growth SF % of Inv Construction Ratio 2025 10,943,633 0 0% 30,864 0.3% 0 2024 10,943,633 0 0% 50,698 0.5% 0 2023 10,943,633 0 0% 71,214 0.7% 0 2022 10,943,633 0 0% 125,159 1.1% 0 2021 10,943,633 173,646 1.6% (43,945) -0.4% - YTD 10,769,987 0 0% (29,231) -0.3% - 2020 10,769,987 0 0% (234,769) -2.2% - 2019 10,769,987 0 0% 11,113 0.1% 0 2018 10,769,987 290,023 2.8% 415,284 3.9% 0.7 2017 10,479,964 128,360 1.2% (149,265) -1.4% - 2016 10,351,604 158,031 1.6% 115,214 1.1% 1.4 2015 10,193,573 13,065 0.1% 11,834 0.1% 1.1 2014 10,180,508 (42,149) -0.4% 30,809 0.3% - 2013 10,222,657 90,787 0.9% 95,558 0.9% 1.0 2012 10,131,870 0 0% 286,870 2.8% 0 2011 10,131,870 43,500 0.4% 47,235 0.5% 0.9 2010 10,088,370 (15,326) -0.2% 34,897 0.3% - 2009 10,103,696 18,019 0.2% 317,480 3.1% 0.1

1 & 2 STAR SUPPLY & DEMAND

Inventory Net Absorption

Year SF SF Growth % Growth SF % of Inv Construction Ratio 2025 5,606,162 (14,279) -0.3% 3,102 0.1% - 2024 5,620,441 (14,220) -0.3% 13,551 0.2% - 2023 5,634,661 (14,187) -0.3% 24,335 0.4% - 2022 5,648,848 (14,250) -0.3% 10,442 0.2% - 2021 5,663,098 (6,765) -0.1% (79,155) -1.4% - YTD 5,669,863 0 0% (40,369) -0.7% - 2020 5,669,863 (3,972) -0.1% (299,561) -5.3% - 2019 5,673,835 5,796 0.1% 81,065 1.4% 0.1 2018 5,668,039 (12,424) -0.2% 23,656 0.4% - 2017 5,680,463 0 0% (70,807) -1.2% - 2016 5,680,463 (41,050) -0.7% (69,910) -1.2% - 2015 5,721,513 (11,545) -0.2% 882 0% - 2014 5,733,058 (4,530) -0.1% 77,135 1.3% - 2013 5,737,588 (1,303) 0% 96,076 1.7% - 2012 5,738,891 (9,721) -0.2% 66,452 1.2% - 2011 5,748,612 0 0% 112,347 2.0% 0 2010 5,748,612 0 0% (7,843) -0.1% - 2009 5,748,612 (48,410) -0.8% (84,095) -1.5% -

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OVERALL RENT & VACANCY

Market Rent Vacancy

Year Per SF Index % Growth Vs Hist Peak SF Percent Ppts Chg 2025 $32.75 149 1.3% 4.2% 1,951,406 9.6% -0.2% 2024 $32.33 147 1.9% 2.9% 1,974,962 9.8% -0.3% 2023 $31.72 145 2.6% 1.0% 2,019,588 10.2% -0.4% 2022 $30.92 141 1.1% -1.6% 2,090,076 10.6% -0.7% 2021 $30.58 139 -0.4% -2.7% 2,234,750 11.3% 1.6% YTD $30.82 141 0.4% -1.9% 1,985,517 10.2% 0.4% 2020 $30.72 140 -2.3% -2.3% 1,899,715 9.8% 2.8% 2019 $31.42 143 1.5% 0% 1,338,104 7.0% -0.4% 2018 $30.97 141 7.3% -1.4% 1,408,153 7.4% -1.0% 2017 $28.86 132 6.7% -8.2% 1,551,266 8.3% 1.4% 2016 $27.05 123 1.8% -13.9% 1,262,397 6.9% 1.0% 2015 $26.58 121 10.3% -15.4% 1,057,291 5.9% 0.3% 2014 $24.10 110 7.5% -23.3% 1,002,590 5.6% -0.8% 2013 $22.43 102 3.2% -28.6% 1,152,771 6.4% -0.7% 2012 $21.74 99 4.8% -30.8% 1,275,953 7.1% -2.4% 2011 $20.75 95 -0.4% -34.0% 1,712,836 9.6% -1.2% 2010 $20.83 95 -0.7% -33.7% 1,924,517 10.8% 0.3% 2009 $20.98 96 -4.3% -33.2% 1,864,525 10.5% -1.3%

4 & 5 STAR RENT & VACANCY

Market Rent Vacancy

Year Per SF Index % Growth Vs Hist Peak SF Percent Ppts Chg 2025 $43.35 145 1.1% 6.2% 403,302 10.7% -0.1% 2024 $42.89 143 1.7% 5.1% 379,783 10.8% 0.3% 2023 $42.19 141 2.5% 3.3% 347,130 10.5% 0.7% 2022 $41.17 138 1.1% 0.8% 308,961 9.8% 0% 2021 $40.70 136 -0.3% -0.3% 304,886 9.8% 1.1% YTD $41.01 137 0.4% 0.4% 276,538 9.0% 0.3% 2020 $40.83 136 0.7% 0% 260,336 8.7% 0.2% 2019 $40.55 136 3.5% -0.7% 229,083 8.5% 0.2% 2018 $39.17 131 9.4% -4.1% 215,226 8.2% 0.1% 2017 $35.81 120 5.9% -12.3% 196,943 8.1% -3.6% 2016 $33.80 113 0.2% -17.2% 256,506 11.7% 5.6% 2015 $33.74 113 3.4% -17.4% 123,077 6.1% 3.2% 2014 $32.64 109 6.6% -20.1% 57,180 2.9% 0.2% 2013 $30.63 102 -0.3% -25.0% 52,738 2.7% -1.1% 2012 $30.73 103 6.5% -24.7% 73,770 3.7% -3.7% 2011 $28.86 96 -0.6% -29.3% 147,610 7.5% -4.8% 2010 $29.05 97 -1.3% -28.9% 243,209 12.3% 5.2% 2009 $29.43 98 -1.6% -27.9% 140,837 7.1% 1.2%

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3 STAR RENT & VACANCY

Market Rent Vacancy

Year Per SF Index % Growth Vs Hist Peak SF Percent Ppts Chg 2025 $31.76 149 1.4% 3.7% 1,012,267 9.2% -0.3% 2024 $31.32 147 2.0% 2.3% 1,043,131 9.5% -0.5% 2023 $30.72 144 2.6% 0.3% 1,093,829 10.0% -0.7% 2022 $29.92 140 1.1% -2.3% 1,165,043 10.6% -1.1% 2021 $29.59 139 -0.6% -3.4% 1,290,202 11.8% 1.8% YTD $29.85 140 0.3% -2.5% 1,101,841 10.2% 0.3% 2020 $29.77 140 -2.8% -2.8% 1,072,610 10.0% 2.2% 2019 $30.62 144 0.6% 0% 837,841 7.8% -0.1% 2018 $30.44 143 6.2% -0.6% 846,478 7.9% -1.4% 2017 $28.67 135 6.3% -6.4% 971,794 9.3% 2.6% 2016 $26.97 127 3.3% -11.9% 694,169 6.7% 0.3% 2015 $26.11 123 12.0% -14.7% 651,352 6.4% 0% 2014 $23.31 109 7.9% -23.9% 650,121 6.4% -0.7% 2013 $21.61 101 3.9% -29.4% 723,079 7.1% -0.1% 2012 $20.79 98 3.7% -32.1% 727,850 7.2% -2.8% 2011 $20.04 94 -1.1% -34.5% 1,014,720 10.0% -0.1% 2010 $20.27 95 0.5% -33.8% 1,018,455 10.1% -0.5% 2009 $20.16 95 -5.4% -34.2% 1,068,678 10.6% -3.0%

1 & 2 STAR RENT & VACANCY

Market Rent Vacancy

Year Per SF Index % Growth Vs Hist Peak SF Percent Ppts Chg 2025 $28.81 154 1.3% 3.1% 535,837 9.6% -0.3% 2024 $28.44 152 1.9% 1.8% 552,048 9.8% -0.4% 2023 $27.91 149 2.6% -0.1% 578,629 10.3% -0.6% 2022 $27.21 145 1.0% -2.6% 616,072 10.9% -0.4% 2021 $26.93 144 -0.2% -3.6% 639,662 11.3% 1.3% YTD $27.10 145 0.5% -3.0% 607,138 10.7% 0.7% 2020 $26.97 144 -3.5% -3.5% 566,769 10.0% 5.2% 2019 $27.95 149 1.7% 0% 271,180 4.8% -1.3% 2018 $27.47 147 8.1% -1.7% 346,449 6.1% -0.6% 2017 $25.40 136 8.1% -9.1% 382,529 6.7% 1.2% 2016 $23.50 125 -0.2% -15.9% 311,722 5.5% 0.5% 2015 $23.55 126 12.4% -15.7% 282,862 4.9% -0.2% 2014 $20.94 112 7.5% -25.1% 295,289 5.2% -1.4% 2013 $19.49 104 4.7% -30.3% 376,954 6.6% -1.7% 2012 $18.62 99 5.5% -33.4% 474,333 8.3% -1.3% 2011 $17.65 94 1.5% -36.9% 550,506 9.6% -2.0% 2010 $17.38 93 -3.0% -37.8% 662,853 11.5% 0.1% 2009 $17.92 96 -4.4% -35.9% 655,010 11.4% 0.7%

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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 ------$299.73 207 6.7% 2024 ------$295.89 204 6.7% 2023 ------$289.94 200 6.7% 2022 ------$282.20 195 6.7% 2021 ------$280.37 194 6.7% YTD 26 $58.6M 1.3% $4,012,631 $313.49 - $279.47 193 6.8% 2020 61 $133.5M 3.2% $4,083,285 $232.87 6.4% $272.01 188 6.9% 2019 74 $282.5M 8.3% $8,230,914 $307.19 6.6% $275.25 190 6.8% 2018 86 $235.5M 6.1% $4,791,400 $230.37 6.9% $271.44 188 6.7% 2017 65 $452.7M 7.3% $8,559,680 $335.19 6.9% $258.42 179 6.7% 2016 88 $243.5M 6.7% $4,011,887 $224.06 8.8% $237.32 164 6.8% 2015 106 $260.1M 13.2% $4,603,879 $194.35 6.5% $231.48 160 6.7% 2014 78 $126.1M 4.7% $2,315,493 $151.88 7.0% $208.74 144 7.0% 2013 88 $91.2M 4.4% $1,728,048 $128.72 8.1% $191.70 132 7.3% 2012 105 $125.9M 6.9% $2,253,408 $117.99 7.5% $179.79 124 7.5% 2011 58 $88.2M 4.5% $2,599,599 $113 12.5% $167.34 116 7.9% 2010 52 $58.8M 3.3% $1,949,572 $143.34 8.1% $148.38 103 8.6% (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 ------$331.03 181 6.9% 2024 ------$327.51 179 6.9% 2023 ------$321.59 176 6.9% 2022 ------$313.33 172 6.9% 2021 ------$311.19 170 6.9% YTD ------$310.21 170 6.9% 2020 3 $19.9M 4.0% $8,983,727 $164.19 - $300.37 165 7.0% 2019 5 $158.5M 13.1% $39,614,400 $551.69 - $300.74 165 7.0% 2018 ------$301.78 165 6.8% 2017 4 $232.2M 18.0% $58,048,489 $532.43 - $294.62 161 6.7% 2016 3 $92.6M 10.3% $30,856,667 $409.42 - $273.83 150 6.7% 2015 4 $97.6M 19.9% $24,393,514 $243.90 6.4% $271.85 149 6.7% 2014 ------$253.99 139 6.7% 2013 1 $3.7M 1.6% $3,650,000 $118.61 9.0% $236.37 129 7.0% 2012 2 $25.7M 9.7% $12,840,100 $133.63 6.7% $225.08 123 7.2% 2011 2 $22.1M 7.7% $11,070,208 $144.52 - $210.85 116 7.5% 2010 ------$186.68 102 8.2% (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.

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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 ------$293.54 209 6.7% 2024 ------$289.58 206 6.7% 2023 ------$283.61 202 6.7% 2022 ------$275.92 196 6.7% 2021 ------$274.11 195 6.7% YTD 12 $44.2M 1.7% $7,114,857 $349.31 - $273.49 195 6.8% 2020 35 $86.3M 3.3% $6,011,092 $265.27 6.5% $265.64 189 6.9% 2019 47 $90.2M 9.9% $5,081,157 $183.94 6.4% $268.42 191 6.8% 2018 35 $119M 5.3% $7,959,615 $241.28 6.7% $265.17 189 6.7% 2017 26 $125M 4.4% $7,885,520 $268.11 7.6% $253.43 180 6.6% 2016 34 $78.7M 5.3% $3,346,308 $169.13 6.5% $231.18 165 6.8% 2015 53 $98.6M 12.9% $4,719,301 $169.79 6.5% $223.52 159 6.8% 2014 32 $47M 2.8% $2,205,217 $162.19 8.4% $201.62 144 7.0% 2013 45 $51.3M 4.8% $1,900,553 $116.40 7.2% $185.85 132 7.3% 2012 36 $54.6M 4.1% $3,462,229 $160.69 6.5% $174.75 124 7.5% 2011 35 $40.5M 3.7% $2,790,542 $112.11 12.5% $162.47 116 7.9% 2010 27 $39.7M 4.2% $3,838,378 $162.94 8.4% $144.28 103 8.6% (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 ------$294.44 223 6.7% 2024 ------$290.65 220 6.7% 2023 ------$284.75 215 6.6% 2022 ------$277.18 210 6.6% 2021 ------$275.49 208 6.6% YTD 14 $14.4M 1.3% $1,685,963 $238.44 - $274.07 207 6.7% 2020 23 $27.2M 2.5% $1,593,115 $215.35 6.0% $268.70 203 6.8% 2019 22 $33.9M 2.9% $2,451,082 $238.35 6.8% $274.39 208 6.7% 2018 51 $116.4M 10.4% $3,447,309 $220.20 6.9% $266.85 202 6.7% 2017 35 $95.5M 7.9% $2,867,473 $213.07 6.4% $248.11 188 6.7% 2016 51 $72.2M 8.0% $2,073,898 $182.69 11.1% $229.07 173 6.8% 2015 49 $63.9M 11.3% $1,979,634 $178.79 6.6% $224.62 170 6.7% 2014 46 $79.2M 9.5% $2,380,969 $146.36 6.3% $197.58 149 7.0% 2013 42 $36.2M 4.7% $1,501,981 $152.99 9.0% $178.37 135 7.4% 2012 67 $45.6M 11.0% $1,195,161 $85.25 8.4% $164.58 124 7.7% 2011 21 $25.6M 4.8% $1,468,273 $96.06 - $152.79 116 8.1% 2010 25 $19.1M 2.9% $1,005,170 $114.65 7.9% $135.19 102 8.8% (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.

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