PRESENTED BY BLOCK REAL ESTATE SERVICES, LLC About The Cover Overland Park, Kansas, artist Jeffrey Owen Hanson (1993-2020) passed away in December, 2020, from a brain tumor associated with neurofibromatosis. To honor our friend, a great artist and philanthropist, 46 Penn Centre featured animated videos of Jeff’s artwork including Cruising the Caribbean, (pictured front with close-up on inside cover) which he generously allowed us to display on CityPlace Corporate Centre III in 2019. We look forward to showcasing more of Jeff Hanson’s work, as well as other local artists. Jeff’s studio, Jeff Hanson Art, will continue creating original paintings in Jeff’s signature style, for sale and commission, while pursuing Jeff’s goal of $10 million to charity (currently at $6.7 million). Visit JeffHansonArt.com to learn more. BLOCK REAL ESTATE SERVICES, LLC (BRES) HIGHLIGHTS OF 2020 SUCCESS ABOUNDS IN KANSAS CITY 02 TRANSACTIONS BRES completed the year with total ECONOMIC sales and leasing transactions in excess of $1.2 Billion. 12 INDICATORS GLOBAL, U.S., PROPERTY MANAGEMENT KANSAS CITY OVERVIEW 14 BRES commercial management portfolio reached over 44.02 million DOWNTOWN square feet of commercial space. 44 MARKET CONSTRUCTION OFFICE Block Construction Services MARKET 50 (BCS) managed over $337 million of development projects and INDUSTRIAL coordinated over $25 million of development projects and tenant 56 MARKET improvements under construction in 2020, including work in all RETAIL sectors, including office, industrial/ warehouse/distrbution, multifamily, MARKET 66 and retail. MULTIFMAILY 72 MARKET INVESTMENT BRES completed over $337 million INVESTMENT in investment sales and raised over $105 million in equity funds for MARKET 78 new acquisitions and development projects. BLOCK 86 INCOME FUNDS AFFILIATES BLOCK CONSTRUCTION Block Hawley Commercial Real Estate, LLC ran Kansas as one of the SERVICES 88 most active industrial brokerage firms in St.Louis, with approximately 2.2 million square feet of listed property BLOCK HEALTHCARE and nearly 4.5 million square feet 92 DEVELOPMENT under management. Block Multifamily Group (BMG) now BLOCK manages approximately 6,750 units MULTIFAMILY GROUP 94 with approximately an additional 2,067 in either development or construction. Block Technology Solutions (BTS) completed 132 installations in over 33 million square feet totaling over $2 million in sales volume. Table of Contents | 1 SUCCESS ABOUNDS IN KANSAS CITY Success Abounds in Kansas2 | 2021 Market Report City SUCCESS ABOUNDS IN KANSAS CITY Exhausting, Lost, Chaotic, Surreal, Relentless. These were all words readers of The Washington Post used to describe 2020. No matter what word you use to describe this past year, it will certainly be a year that we will not soon forget. Below is a snapshot of some of the significant events of 2020. We will provide additional details on some of these items in the Global, U.S., Kansas City Overview section. 2020 began with the Australian bushfires, followed by the COVID-19 pandemic and the impeachment of President Donald Trump.From there we went into the stock market crash of 2020, the killing of George Floyd, and the Black Lives Matter protests. Later in the year, 2020 brought us the west coast wildfires followed by the death of Supreme Court Justice Ruth Bader Ginsberg. We were able to end 2020 on a positive note with the COVID-19 vaccine rollout and Congress passing a $2.3 trillionappropriations bill which included a $900 billion COVID relief stimulus package.Even though this year was especially challenging, we did see this nation come together in ways we have never experienced before.Neighbors started singing in the rain with socially distanced dance parties; Elon Musk’s SpaceX launched Americans into orbit from U.S. soil for the first time in almost nine years; LeVar Burton read to quarantined people; an Iowa boy sold baseball bats from fallen trees to aide storm victims and a seven-year-old threw a personal prom for his babysitter after hers was cancelled due to the pandemic.In November, a Boston resident held a virtual Thanksgiving dinner and invited anyone spending the holiday alone to join her. As we put 2020 behind us and look forward to 2021, let’s use the following words to describe the coming year: Restorative, Promising, Encouraging, Hopeful, Peaceful. In May 2020, BRES was honored to win Best Companies to Work For by Ingram’s. With the events surrounding 2020, the recognition means just that much more as the leadership at BRES made quick decisions enabling all of its employees to continue working in a safe, remote manner. Pictured above, left to right: Kimberly Mann, Chief Financial Officer; Michael Block, Principal-Designated Broker; Brian Beggs, Executive Vice President, Chief Investment Officer; Doug Roth, Chief Information Officer; Stephen Block, Principal; Scott Cordes, Senior Vice President, Chief Operating Officer; Ali Brady, Insurance Manager; Ken Block, Managing Principal. Success Abounds in Kansas City | 3 SUCCESS ABOUNDS IN KANSAS CITY A world where we can put aside our differences, come • Ranked 9th in top property management in the together and coexist is a world where we can disagree Midwest without conflict. • Ranked 11th in top developers in the Midwest Block Real Estate Services, LLC (BRES) continues to lead • Ranked 12th in top brokers in the Midwest the Kansas City commercial real estate industry and was recognized in 2020 by the following publications based INGRAM’S on their 2019 numbers: • #1 Top area commercial real estate company for $890 KANSAS CITY BUSINESS JOURNAL million gross sales • #1 Commercial real estate property manager— • #1 Top area commercial real estate company for managing over 42 million gross leasable square feet— square footage managed/sold/leased managing industrial, office and retail • Best Commercial Real-Estate Firm - Silver Award • #1 Most active commercial real estate firm with 769 COSTAR GROUP, INC. transactions • #2 Top area leasing firms • #3 Largest commercial real estate firm with volume of $890.50 million • #3 Top area sales firms • #2 Commercial real estate company with 69 real • Power Broker Award Winner estate agents AWARD WINNING DEVELOPMENTS • #9 Top Area Multitenant Industrial Facility (Pine Ridge Business Park—2,649,076 square feet) • 2019 - 531 Grand, Kansas City, Missouri - Capstone Award Winner - Kansas City Business Journal • #15 Top Area Multitenant Industrial Facility (Lenexa Logistics Centre—1,712,724 square feet) • 2019 - The Grand, Kansas City, Missouri - Best Adaptive Re-Use, Excellent Award - Historic Kansas City • #20 Top Area Multitenant Industrial Facility (Riverside Industrial & Distribution Center—1,337,561 square feet) • 2019 - The Grand, Kansas City, Missouri - Capstone Award Winner - Kansas City Business Journal • #22 Top Area Multitenant Industrial Facility (Paseo Industrial Park—926,000 square feet) • 2018 - The Equitable, Des Moines, Iowa - William J. Wagner Award - State Historic Preservation Office • #23 Top Area Multitenant Industrial Facility (College Crossing Business Park—820,140 square feet) • 2018 - Lenexa Logistics Centre Building 7, Lenexa, Kansas - Capstone Award Winner - Kansas City • #24 Top Area Multitenant Office Building (Pinnacle Business Journal Corporate Centre I—73,393 leasable square feet) • 2017 - The Royale at CityPlace, Overland Park, Kansas - • #25 Top Area Multitenant Office Building (Four Pine Capstone Award Winner - Kansas City Business Journal Ridge Plaza—68,773 leasable square feet) • 2017 - Lenexa Logistics Centre North Building 1, ST. LOUIS BUSINESS JOURNAL Lenexa, Kansas - Capstone Award Winner - Kansas City Business Journal • #19 Largest commercial real estate firm, based on number of local active licensed agents (Block Hawley) • 2015 - Lenexa Logistics Centre Building 4, Lenexa, Kansas - Capstone Award Winner - Kansas City • #23 Largest commercial real estate firm, based on Business Journal number of total local staff (Block Hawley) • 2014 - Nall Corporate Centre I, Overland Park, Kansas - NATIONAL REAL ESTATE INVESTOR Capstone Award Winner - Kansas City Business Journal • Ranked 23rd for total office space developed or under Many of the major highlights for BRES and its affiliates in construction of 600,000 square feet 2020 will be discussed within the pages of this report. Of those, below are some that stand out from the rest: COMMERCIAL PROPERTY EXECUTIVE - NATIONAL RANKING PROPERTY AND ASSET MANAGEMENT • Ranked 13th top national property manager SERVICES TEAM • Ranked 28th top national commercial BRES has continued to evolve and expand its commercial development firm footprint in the Kansas City area as well as Alabama, • Ranked 39th top national multifamily owners Arizona, Arkansas, Florida, Georgia, Indiana, Iowa, Kentucky, Minnesota, Nevada, New Mexico, Ohio, South MIDWEST REAL ESTATE NEWS Carolina, and Tennessee.Management of 2020 new • Ranked 5th in top owners in the Midwest ground up construction includes the following properties: 4 | 2021 Market Report 46 Penn Centre, CityPlace Corporate Centre III, Lenexa Logistics Centre East, and additional medical buildings in various states. The management team has been working closely with our investors which has resulted in the addition of management for several retail and industrial properties throughout the Metro. In 2020, the management team focused on completing several parking lot overlays, extensive roof repairs and replacements, energy retrofits, and has added additional security and CCTV systems. These tasks served to