average asking rent percentagee Figure 2 Las Vegas $876 (2007 Q4) 10.96% (2009 Q3) $855(2015Q4) 8.25% (2015 Q4) 15.68% Drop $741 (2013Q1)

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1 Lied Institute Report on featuring data from the Center for Business Economic Research Volume 12, 4 th Quarter, 2015 in 4 th Quarter 2015 The Las Vegas apartment market saw a slight increase in the average asking rent an increasee in the vacancy rate this quarter, according to data from our apartment survey, collected by thee Center for Business Economic Research(CBER) ). The average asking rent increased eachh quarter during This quarter saw less than a one percent increase in asking rents thee average asking rent is now $855. Asking rents are up 7.4 percent since 2014Q4($796). Averagee asking rents in Las Vegas remain 3 percent lower than their peak in 2007($ $876), but 15.4 percent higher than their low in 2013Q1($741). After two consecutive quarters with a decrease in thee vacancy rate, the vacancy rate increased this quarter. The vacancy rate increased 1.3 percentagee points this quarter is now 8.2 percent. The vacancy rate is unchanged on a year over year basis. The vacancy rate remains 2.7 percentage points lower than it s peak in 2009Q3(10.96%) ), but 3.7 percentage points higher than it s low in 2006Q1 (4.5%).. Figure 1 Figure 2 Average Rent Las Vegas Metro Apartment Rental Rates 15.68% Drop $876 (2007 Q4) $855(2015Q4) $741 (2013Q1) Date (Quarter 1, Quarter 4, 2015) Source: CBER Apartment Survey 2016 Average Vacancy Rate (%) Las Vegas Metro Apartment Vacancy Rates 10.96% (2009 Q3) 4.53% (2006 Q1) 8.25% (2015 Q4) Date (Quarter 1, Quarter 4, 2015) Source: CBER Apartment Survey

2 Page 2 Figure 1: Apartment Rental Rates in Las Vegas* Rent Q No Data Greater than *Figure based on CBER Apartment Survey Most zip codes in the Las Vegas Metropolitan area saw changes of less than 2 percent in asking rents this quarter. The Northwest region saw the most significant increases in asking rents this quarter. The zip code saw a 6.5 percent($72) increase in asking rents this quarter the largest increase of any zip code in the Las Vegas Metropolitan area. The also has the largest year over year increase in asking rents of any zip code in the Las Vegas Metropolitan area with a 22 percent($214) increase. Many other zip codes in the western region saw an increase in the average asking rent of about 2 percent this quarter. The Center Southern region were the only areas to see any significant decrease in asking rents this quarter. The zip code saw a 5 percent decrease($37) in asking rents this quarter the largest decrease of any zip code in the Las Vegas Metropolitan area. The asking rent is up year over year for all zip codes in the Las Vegas Metropolitan area.

3 Page 3 Figure 2: Apartment Vacancy Rates in Las Vegas* Vacancy Q No Data *Figure based on CBER Apartment Survey The Eastern Center region saw the most significant increases in the vacancy rate this quarter. Both the zip codes saw increases in the vacancy rate of 3.3 percentage points the largest increase of any zip code in the Las Vegas Metropolitan area. The zip code currently has the highest vacancy rate (11.3 percent). The Western Southeastern region both saw changes of less than one percentage point this quarter. After seeing notable increases in the vacancy rate last quarter, the Southwestern region saw the most notable decreases in the vacancy rate this quarter. The zip code had the most significant decrease in the vacancy rate this quarter with a 4 percentage point decrease. The zip code is also the only zip code with any significant change in the vacancy rate on a year over year basis with a 3.1 percentage point year over year increase.

4 Page 4 Furnished studioss were the only apartment type to see a significant decrease in asking rents this quarter. The asking rent on furnished studios decreased 3.5 percent($22) this quarter. However, furnished studios are up one percent($6) on a year over year basis. Furnished two bedroom two bathroom apartments saw a 4.2 percent($35) increase in asking rents this quarter the largest increase of any apartment type. Unfurnished one bedroom apartments increased lesss than one percent($7). Both furnished unfurnished two bedroom one bathroom apartments saw less than a one percent change in asking rents. Asking rents on unfurnished two bedroom two bathroom apartments three bedroom apartments also increased less than one percentage this quarter. All apartment types have seen increases in the asking rent on a year over year basis. Furnished two bedroom one bathroom apartments have seen the largest increase on a year over year basis with a 10 percent increase ($89). All apartment types have asking rents that are below their 2008 peak values. Average Rent Las Vegas Metro Rents by Apartment Type Date (Quarter 1, Quarter 4, 2015) All Type One Bed Two Bed, Two Bath Studio Two Bed, One Bath Three Bed Source: CBER Apartment Survey Figure 4 Figure 5

5 Page 5 Figure 5 Figure 6 Rental Frequency Las Vegas MLS Leased Homes 7,551 (2014 Q4) Date (2009Q1-2015Q4) All Homes Single-Family Homes Source: Greater Las Vegas Association of Realtors MLS 6,571 (2015 Q4) Median Rent Rent Per Square Foot of MLS Leased Homes Date (2009Q1-2015Q4) Multifamily Homes Single-Family Homes Source: Greater Las Vegas Association of Realtors MLS $0.78 (2014 Q4) $0.70 (2014 Q4) $0.82 (2015 Q4) $0.73 (2015 Q4) Apartment complexes, to a certain extent, compete with individually owned units, which mostly consist of single family homes, townhomes, condominiums. MLS rental leases proxy this competition. MLS rental leases are highly seasonal the number of leases typically decrease in the fourth quarter each year. There were 6,571 rental leases in 2015Q4 980 less than 2014Q4 (7,551). Price per square footing on MLS rental leases has seen year over year growth. Single Family homes rented for $0.73 a square foot Multifamily homes rented for $0.82 a square foot in 2015Q4. Peter Counts, Data Analyst

6 Page 6 Table 1: Apartment Rental Vacancy Rates by Zip Code Area ZIP CODE UNIT RATES AVERAGE RATES UNITS Studio 1 Bed 2 Bed/1 Bath 2 Bed/2 Bath 3 Bed F U F U F U F U F U Rent Vacancy Total Units Vacant Units % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % METRO LV % ". " Number of observations insufficient for statistical purposes. "F" sts for Furnished "U" sts for Unfurnished. Cummulative sum of vacant units might not equal the reported Metro LV vacant units because of rounding issues. Source: CBER Apartment Survey

7 Page 7 About the Institute The Lied Institute for Real Estate Studies was established in 1989 by the Lee Business School at the University of Nevada, Las Vegas to foster excellence in real estatee education research. Through partnerships with business community leaders, the Lied Institute strivess to improve real estate business effective public produces relevant timely real estate research, supports educational programs in real estate economics finance for students professionals, provides community outreach continuing education. policy practices in Southern Nevada. The institute The Lied Institute for Real Estate Studies Lee Businesss School Contact Information Edward Coulson Director (702) Ed.Coulson@ unlv.edu Betty Campbell Program Coordinator (702) Betty.campbell@unlv.edu Peter Counts Data Analyst (702) S. Maryl Parkway, Box Las Vegas, NV institute