Market Report. Northern Virginia 1st Quarter 2016. cushmanwakefield.com

Market Report Northern Virginia 1st Quarter 2016 cushmanwakefield.com

Contents DC Metropolitan Area Overview...3 Northern Virginia & Map...4-6 Alexandria...7 RB Corridor...8 Crystal City/Pentagon City...9 Tysons Corner......10 Reston/Herndon...11 50-66...12 Route 28 South/Chantilly...13 Loudoun County...14 Appendix...15 Tables...15-24 Methodology & Definitions...25 About Cushman & Wakefield...26 Cushman & Wakefield 2

Washington, DC Metropolitan Area Strong Economic Showing in Q1 2016 The first quarter of 2016 marked a continuation of and improvement on the robust growth experienced over the course of 2015 in the Washington, DC politan region (DC Metro), and any potential slowdown in hiring due to the uncertainty of the upcoming presidential election has not been evident in the employment data. Quite the opposite, in fact: at the close of March 2016, DC Metro employers have added over 83,000 total nonfarm payroll jobs since March of 2015. Note that this is a region that typically adds closer to 35,000 jobs per year. While the DC Metro region s economy outperformed that of the United States (U.S.) as a whole from the 1990s into 2011, budget sequestration and general gridlock in Washington caused the DC Metro region to lag the U.S. since the third quarter of 2011. But there is a sign that the region has returned to normalcy: its economy has now finally eclipsed the U.S. economy in year-over-year employment growth percentage, finishing Q1 2016 up 2.3% versus the national growth rate of 1.9%. WASHINGTON, DC METRO Economic Indicators Q1 15 Q1 16 DC Metro Employment 3.14M 3.22M DC Metro Unemployment 4.6% 4.0% U.S. Unemployment 5.5% 5.0% Market Indicators Q1 15 Q1 16 Overall 18.3% 17.8% Net Absorption 289K (334K) Under Construction 4.6M 6.8M Deliveries 391K 764K 12-Month Forecast 12-Month Forecast Job growth was above average for all jurisdictions in the DC Metro region. Northern Virginia led the way with 40,700 job gains on a year-over-year basis. Suburban Maryland accounted for 28,400 new jobs, the District of Columbia contributed 9,200 to the total, and outlying parts of the region making up the balance. Officeusing jobs including federal employment accounted for 27% of the total. The largest gains in the region were in the office-intensive Professional and Business Services sector which accounted for over 23,000 new positions compared to March of 2015. Growth in the Financial and Federal Government sectors was modest with 1,730 and 860 new jobs added to payrolls, respectively. In nonoffice using employment, year-over year gains were impressive: the Leisure & Hospitality posted 16,160 new jobs, Manufacturing & Construction added 12,620, Retail added 10,540, and Education & Healthcare sectors posted 8,850 new jobs. The Washington, DC politan region s office market continues to slowly trend back towards historic norms after several years of elevated vacancy and flat absorption. The vacancy rate for the region ended the first quarter of 2016 at 17.8%, down from 18.3% a year ago. Overall net absorption was basically flat for the quarter at negative 334,000 square feet (sf) for the DC Metro region. The submarkets that continue to outperform in the District of Columbia and in the suburbs all offer proximity to transit and retail amenities in a mixed-use environment. New supply to market continues to be well below historic norms. The average new supply to market post-recession has fallen to 2.1 million square feet (msf) 3.3 msf less than the average from 2000-2009. 2018 has the potential to be the next big supply year based on projects currently in the pipeline driven particularly by development and redevelopment in the downtown core. Looking forward, the consensus forecast for job growth in the region remains bullish with major forecasting firms calling for above-average job growth of 50,000-60,000 job gains per year through 2019. With the space-use efficiency trend that has eroded office demand from job growth the past five years slowly coming to an end among most of the large occupier sectors in the market, increased positive demand from each job created can be expected in the midterm. Average (FS) $36.40 $36.19 Net Absorption/ 4Q TRAILING AVERAGE 2.0 1.0 0.0-1.0 $34.00 2010 2011 2012 2013 2014 2015 2016 Washington, DC Metropolitan Area NET ABSORPTION - DELIVERIES - VACANCY MSF 10.0 8.0 6.0 4.0 2.0 0.0-2.0-4.0-6.0 Net Absorption, MSF, $ PSF 05 06 07 08 09 10 11 12 13 14 15 16 Net Absorption Deliveries Rate 20% 16% 12% 8% 4% 0% $39.00 $38.50 $38.00 $37.50 $37.00 $36.50 $36.00 $35.50 $35.00 $34.50 Rate cushmanwakefield.com 3

Northern Virginia Economy The Northern Virginia economy continued the momentum seen Market Indicators 1Q 15 1Q 16 12-Month Forecast in 2015 into the first quarter of 2016. Unemployment remains Overall 21.7% 21.4% extremely low, with the City of Alexandria and Arlington, Fairfax Net Absorption (50K) (479K) and Loudoun counties all reporting jobless rates below 3.5%. Under Construction 2.7M 3.6M Preliminary numbers from the Bureau of Labor Statistics show Deliveries 199K 160K that Northern Virginia added 11,600 net new nonfarm payrolls Average $33.24 $32.14 of the 16,100 total nonfarm jobs created in the Washington, DC Metropolitan region during January and February of 2016. All officeusing employment sectors posted gains in the first two months of the year, with Professional and Business Services leading the way with 2,400 jobs added and the Information, Federal Government, and Financial Services sectors following with 425, 330 and 240 net new jobs, respectively. Net Absorption/ 4Q TRAILING AVERAGE 400 200 0-200 $34 $33 $32 $31 $30 Market Overview -400-600 $29 $28 The Northern Virginia office market registered negative 479,000 square feet (sf) of net absorption in the first quarter of 2016 as several large scale move-outs by federal contractors hit the market. The overall vacancy rate stood at 21.4%, down from 21.7% a year ago but up from 21.2% at year-end 2015. Renewals dominated leasing activity in the first quarter, accounting for seven of the top 10 transactions. The most significant deal was that of tech company Opower, which committed to a 63,000- sf prelease at 2311 Wilson Boulevard in Arlington s Courthouse submarket. Their 175,000-sf future headquarters building is scheduled to be delivered by Carr Properties in mid-2018. The competition to land this tech company that services the utility industry has endured for years and spanned several jurisdictions; ultimately, the Commonwealth of Virginia was successful in keeping the company within its borders with the help of a $1 million incentive from the Governor s Opportunity Fund. Several large-scale developments continued or entered into construction in the first quarter. What will be the largest office building in the region Capital One s 1 msf headquarters expansion now rises above ground level and is set for a 2018 completion. In addition, Comstock Partners began construction of their 350,000 sf speculative office building at Wiehle-Reston East Metro Station, as yet another Silver Line station continues to add density. Lerner Enterprises speculative 475,000-sf building, 1775 Tysons Boulevard, and MITRE s 340,000-sf build-to-suit at 7598 Colshire Drive, should be delivering by mid-year. -800 $27 2010 2011 2012 2013 2014 2015 2016 Net Absorption, SF (thousands), $ PSF Overall 24% 22% 20% 18% 16% 14% 12% 10% 2010 2011 2012 2013 2014 2015 2016 Large Blocks of Contiguous Space 25-50k SF Loudoun County Route 28 South Springfield/Newington 50-100k SF 100-150k SF 150-200k SF 200k+ SF 50/66 Reston/Herndon Tysons Corner Arlington Alexandria 0 20 40 60 80 # of Blocks Cushman & Wakefield 4

Northern Virginia Office Submarkets Northern Virginia Office Submarkets LOUDOUN LOUDOUN PHASE II 2016 267 MARYLAND ROUTE 772 ROUTE 606 RESTON RESTON 267 INNOVATION CENTER WASHINGTON DULLES INTERNATIONAL AIRPORT PHASE I 7 HERNDON RESTON TOWN CENTER 267 WIEHLE - RESTON EAST TY UN TY CO UN N CO X SPRING HILL FA OU WASHINGTON, DC IR UD 123 28 Y NT TY OU UN X C CO FA N IR TO FA ING L R A FA LO DI ST DULLES AIRPORT D AN YL IA AR IN M IRG V RI MA RY CT OF LA N D CO LU M BI A HERNDON HERNDON LOUDOUN COUNTY 50 FAIRFAX COUNTY GREENSBORO MCLEAN TYSONS CORNER 286 ARLINGTON COUNTY TYSONS 495 WEST FALLS CHURCH EAST FALLS CHURCH VIR 29 66 66 BALLSTON ALGONKIAN P 50 FAIRFAX CENTER IA CLARENDON VIRGINIA SQUARE - GMU R-B CORRIDOR 495 VIENNA 66 AR 28 29 GIN ROSSLYN COURT HOUSE DUNN LORING/ MERRIFIELD 123 ROUTE 28 SOUTH 50 50 PENTAGON CRYSTAL CITY MERRIFIELD AY KW 29 395 RONALD REAGAN WASHINGTON NATIONAL NATIONAL AIRPORT AIRPORT 236 I-395 CORRIDOR 286 7 FAIR FAX COUN TY PRINCE WILLIAM C O POTOMAC RIVER VAN DORN STREET UNT Y EISENHOWER AVENUE KING STREET 1 OLD TOWN ALEXANDRIA EISENHOWER AVENUE PRINCE WILLIAM COUNTY 95 FRANCONIA/ SPRINGFIELD SPRINGFIELD/ NEWINGTON cushmanwakefield.com 5

Top Transactions Key Lease Transactions 1Q 2016 PROPERTY SF TENANT TRANSACTION TYPE SUBMARKET 14370 Newbrook Drive 160,000 CACI Renewal Route 28 South/Chantilly 14700 Lee Road 84,700 General Dynamics Renewal Route 28 South/Chantilly 2311 Wilson Boulevard 63,000 Opower Prelease Courthouse/Clarendon/VA Square 251 18th Street S 53,900 Chemonics International New Lease Crystal City/Pentagon City Key Sales Transactions 1Q 2016 PROPERTY SF SELLER/BUYER PRICE SUBMARKET McKinley & Pierce Buildings 574,558 Dividend Cap Diversified Prop Fund / Northop Grumman $158,400,000 Tysons Corner Pacific Corporate Park 696,387 Gramercy Property Trust / Beacon Capital Partners $145,500,000 Route 28 North Mission Ridge I & II 312,203 Lasalle Investment / Salus Property $96,000,000 Route 28 South Presidents Park I, II, and III 600,906 NYSCRF JV Liberty Property Trust / Normany Real Estate Partners JV Siguler Guff $80,500,000 Reston Northern Virginia Office Market Net Absorption - Deliveries -, First Quarter 2016 Northern Virginia Office Market Inventory and by Submarket, First Quarter 2016 Square Feet (Millions) 7 5 3 1 25% 20% 15% 10% Rate MSF 30 25 20 15 10 30% 25% 20% 15% 10% Rate -1 5% 5 5% -3 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 0% 0 Alexandria RB Crystal City Tysons Reston/ Corridor Herndon 50/66 Route 28 S Chantilly Loudoun 0% New Deliveries Net Absorption Rate Leased Vacant Rate Cushman & Wakefield 6

Alexandria Market Indicators *Arrows = Current Qtr Trend 24.7% Net Absorption 35,500 SF Under Construction 720,000 SF Deliveries 0 SF $31.13 FS After a very slow fourth quarter, Alexandria experienced an increase in deal activity in Q1 2016 as several relatively large- Net Absorption Deliveries sized deals in the submarket were signed. Advanced Resource Technologies 18,000-sf renewal at 1555 King Street was followed by Coggins 15,669 sf new lease at 44 Canal Center Plaza and the AMCP s (Academy of Managed Care Pharmacy) new deal for 15,585 sf at 675 North Washington Street. In a win for the I-395 Corridor section of Alexandria, Northern Virginia Community College (NVCC) signed a new lease for 15,000 sf at 4700 King Street. Square Feet, 000 s 800 600 400 200 0-200 -400 30% 25% 20% 15% 10% 5% Rate Old Town continues to boast the lowest vacancy rate of any submarket in NoVA. Its overall vacancy rate of 9.1% is significantly less than that of the next-lowest submarket, Reston/Herndon (17.1%). The I-395 and Huntington/Eisenhower submarkets continue to struggle with high vacancy rates of 37.5% and 41.4%, respectively. Rental rates in Alexandria have increased by a slight 1.8% from a year ago, due mainly to an uptick in rents for Class A space. Absorption was relatively unchanged, with Alexandria experiencing only a handful of small move-ins and move-outs. -600 06 07 08 09 10 11 12 13 14 15 Q1 2016 Net Absorption Deliveries Rate Old Town Rate New Leasing Activity 1.20 1.00 0% Rubenstein Partners is gutting and renovating 2461 Eisenhower 0.80 Avenue (across from the new National Science Foundation HQ) MSF 0.60 and rebranding it Carlyle Tower. This 14-story, 335,000-sf office building is undergoing a 15-month transformation into a Class 0.40 A office building and will redeliver in early 2017. The General 0.20 Service Administration has delayed the Transportation Safety Administration s (TSA) move to its new headquarters until mid- 2020. TSA had originally planned to consolidate and relocate by Spring 2018, but now will likely have to extend at 601 and 701 S 12 0.00 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Q1 Q2 Q3 Q4 St in Pentagon City. Advanced Resource Technologies executed a sale-leaseback with Bernstein Management Corporation at 1555 King Street. The 32,003-sf building sold for $9.47M ($296/sf) and was 80% leased at the time of sale, to the seller and a variety of smaller tenants. Outlook Vornado/Charles E. Smith is currently marketing their Skyline portfolio for sale. The rare opportunity to buy 2.45 million square feet has presented itself through this seven building portfolio. These properties will be a great value play for future investors. $41 $39 Full Service PSF $37 $35 $33 $31 $29 $27 $25 2011 2012 2013 2014 2015 Q1 2016 Class A Class B cushmanwakefield.com 7

RB Corridor Market Indicators *Arrows = Current Qtr Trend 23.3% Net Absorption 38,500 SF Under Construction 552,800 SF Deliveries 0 SF $40.72 FS The Rosslyn-Ballston Corridor (RB Corridor) has experienced a rapid increase in vacancy over the last few years from midsingle-digits in 2011 to over 20% by the end of 2013. The climb in vacancy was due primarily to contractor and GSA downsizings and relocations, and to a lesser degree the delivery of 1812 North Moore Street. in the Corridor peaked at an all-time high of 24.4% in Q2 2015 and has declined slightly to its current 23.3%. Rosslyn s vacancy currently stands at 29.8%, the highest of any submarket outside of I-395 and Eisenhower Avenue. Ballston s Class A vacancy rate of 14.6% is the lowest of any submarket besides Old Town, and the 21.2pp difference between class A (14.6%) and class B (35.8%) vacancy is wider than in any other NoVA submarket. This difference illustrates the dichotomy between Class A and commodity space and their relative desirability among tenants in NoVA. The most notable development news of the quarter was OPower s announcement of its 63,000-sf prelease at the proposed 2311 Wilson Boulevard in Courthouse. Its commitment will allow construction of the 175,000-sf, 8-story building to proceed, with anticipated delivery at the end of 2017, after which the company will be relocating from its current space at 1515 North Courthouse Road. The largest deal of Q1 2016 was Sinclair Television Group s 100,000 sf renewal in Monday Properties Twin Towers buildings (1100 and 1101 Wilson Boulevard). Source Office Suites renewed for 32,612 sf at Colonial Place I, SMDI signed a new 28,315-sf lease at 1101 Wilson Boulevard, and Innovative Defense Technologies signed a 25,073-sf relet at 4401 Wilson Boulevard. Leasing activity for the quarter came in at a modest 176,701 sf, with 166,084 sf (94.0%) occurring in class A buildings. The U.S. Coast Guard vacated 89,451 sf at 4200 Wilson Boulevard in a consolidation to its St. Elizabeth s campus, ESI International vacated 51,000 sf at 901 North Glebe in a move to 4301 North Fairfax Drive, and Westwood College departed 39,216 sf at 4420 North Fairfax Drive, as for-profit colleges continue their downsizing. Sands Capital moved into 78,000 sf at 1000 Wilson Boulevard as it switched between Twin Towers, GW Medical Associates took 48,700 sf at 3811 North Fairfax Drive in Courthouse, and MakeOffices occupied 39,837 sf at 3100 Clarendon Boulevard. Shooshan Company and Brandywine are changing plans for 4040 Wilson to allow for eight floors of office topped by 12 floors of residential. This change spurred a prelease for two floors from Vida Fitness, and will reduce the desired 40% RBA office prelease to 80,000 sf. Outlook Arlington s ability to keep OPower within the county marks a successful application of the Commonwealth Opportunity Fund, which contributed $1 million in incentives as the company committed to adding jobs and investing in capital within the county. The County Board is now considering the creation of smaller incentives funds targeted towards smaller companies in high-growth sectors such as cybersecurity and data analytics, in order to further combat high vacancy. Square Feet, 000 s MSF Net Absorption Deliveries 1,000 800 600 400 200 0-200 -400-600 -800 06 07 08 09 10 11 12 13 14 15 Q1 16 Net Absorption Deliveries Rate New Leasing Activity Full Service PSF 1.60 1.40 1.20 1.00 0.80 0.60 0.40 0.20 0.00 25% 20% 15% 10% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Q1 Q2 Q3 Q4 $56 $54 $52 $50 $48 $46 $44 $42 $40 $38 $36 $34 $32 2011 2012 2013 2014 2015 Q1 2016 Class A Class B 5% 0% Rate Cushman & Wakefield 8

Crystal City/Pentagon City Market Indicators *Arrows = Current Qtr Trend 22.2% Net Absorption (93,700) SF Under Construction 0 SF Deliveries 0 SF $37.69 FS Since peaking at 26.8% in Q4 2013, vacancy in Crystal City has slowly declined to its current 22.9%. The submarket experienced net negative absorption in Q1 2016. NATO and MB Consulting moved into 30,000 sf and 6,000 sf, respectively, at 2511 Jefferson Davis Highway, but this was more than offset by Lockheed Martin s 85,535 sf move-out at 1550 Crystal Drive. The largest relet deal of the quarter was in Crystal City: international development consultant Chemonics International signed for 53,929 sf at 251 18th Street South. The second largest deal of Q1 2016 was NATO Sea Sparrow s relocation from 727 23rd Street South to 30,700 sf at nearby Presidential Tower. Two associations the American Intellectual Property Law Association and the Association for Professionals in Infection Control and Epidemiology signed two new leases for 12,000 sf each at 1400 Crystal. Crystal City s reliance on GSA users and contractors is once again evident. The Drug Enforcement Administration (DEA), whose 503,776-sf lease at 600 and 700 Army Navy Drive expires in September 2018, is beginning the search for a new home in the 478,607 sf to 575,000 sf range. Between the DEA and the Transportation Safety Administration (TSA) Crystal City could potentially lose around 1 msf of GSA tenants in 2018. WeLive, the residential counterpart to WeWork, has officially opened at 2221 South Clark Street, joining other entrepreneurial startup ventures in the area such as Eastern Foundry, 1776, and TechShop. Square Feet, 000 s MSF Net Absorption Deliveries 1,000 500 0-500 -1,000-1,500-2,000 06 07 08 09 10 11 12 13 14 15 Q1 16 Net Absorption Deliveries Rate New Leasing Activity 2.50 2.00 1.50 1.00 0.50 30% 25% 20% 15% 10% 5% 0% Rate 0.00 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Q1 Q2 Q3 Q4 $44 $42 Outlook The Bartlett, the largest multifamily project under construction in NoVA, is due for delivery in mid-2016. The area surrounding Pentagon City Mall should see continuous revival over the next few years, as the area has several other multifamily projects in the planning stages. Full Service PSF $40 $38 $36 $34 $32 2011 2012 2013 2014 2015 Q1 2016 Class A Class B cushmanwakefield.com 9

Tysons Corner Market Indicators *Arrows = Current Qtr Trend 19.3% Net Absorption (97,700) SF Under Construction 1,790,809 SF Deliveries 0 SF $31.65 FS Tysons current overall vacancy rate is 19.3%. That is slightly above its five-year average of 18.8% and marking a slight decline from the 20.4% rate in Q1 2015 which was the highest vacancy rate since the post dot-com bubble years of 2002-2003. Direct rental rates have decreased by 4.5% from the first quarter of last year, as higher-priced, Metro-accessible, Class A product has continued to capture new leasing and experienced few move-outs. The submarket, along with the rest of Northern Virginia, registered low leasing volume of 132,071 sf in Q1 2016. Watt Tieder Hoffar Fitzgerald signed a new lease for 32,620 sf at Greensboro Station I, PAE Shield Acquisition Company expanded by 18,117 sf at 7799 Leesburg Pike, Enterprise Information Services renewed for 16,572 sf at 1945 Old Gallows Road, and Arrowpoint Corporation signed for 14,371 sf at 8260 Greensboro Drive. The majority of deals were for less than 10,000 sf and consisted mainly of consulting and technology companies. Net Absorption Deliveries 1,000 Square Feet, 000 s 800 600 400 200 0-200 -400-600 -800 06 07 08 09 10 11 12 13 14 15 Q1 16 Net Absorption Deliveries Rate 25% 20% 15% 10% 5% 0% Rate Pentagon Federal Credit Union moved into 137,135 sf at 7940 Jones Branch, the building it acquired from LMI and MRP Realty in Q4 2015. Washington Gas occupied 51,591 sf at 8614 Westwood Center Drive, and new owner MRP Realty plans on attracting further activity through the creation of WeWorkstyle shared office space, the first of its kind in Tysons. Sagenet vacated all 142,932 sf at 1750 Old Meadow Drive as it relocates its Washington DC operations to Reston. Owner Matan Realty plans to renovate the building which was originally built in 1985. The GSA vacated 31,919 sf at 2070 Chain Bridge Road, PwC gave back a floor (26,789 sf) at 1800 Tysons Boulevard, as did Palantir (25,598 sf) at 1660 International Drive. MSF New Leasing Activity 3.50 3.00 2.50 2.00 1.50 1.00 0.50 MITRE s 340,000-sf build-to-suit and Lerner s 476,000-sf speculative office building at 1775 Tysons Boulevard are due to deliver by mid-2016. Capital One Tower s 980,000 sf have begun to rise above ground level, with completion scheduled for 2018. 0.00 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Q1 Q2 Q3 Q4 $50 Outlook In Northern Virginia, Class A office buildings accounted for 74.2% of all leasing activity (renewals and new leases) by square footage in 2015. However, only 50.1% of Tysons office inventory is considered Class A and the submarket contains 41 buildings built before 1980. With tenants flocking to high-quality, on- Metro buildings, especially professional and business service firms which dominate Tysons, an increase in conversions and renovations may be likely in the near future. Full Service PSF $45 $40 $35 $30 $25 2011 2012 2013 2014 2015 Q1 2016 Class A Class B Cushman & Wakefield 10

Reston/Herndon Market Indicators *Arrows = Current Qtr Trend 17.1% Net Absorption (195,900) SF Under Construction 354,900 SF Deliveries 0 SF $30.22 FS Since hitting a five-year low of 14.9% in Q1 2014, vacancy in Reston/Herndon has hovered in the 15% to 17% range and currently sits at 17.1%. Direct weighted asking rates have remained virtually unchanged for all building classes over the past 24 months. The largest lease in Reston/Herndon in Q1 2016 was that of the Virginia Spine Institute which signed for 32,779 sf at 11800 Sunrise Valley Drive. Fannie Mae occupied the entirety of One Reston Crescent, which, like Two Reston Crescent, is now fully occupied. Brookfield Properties, owner of these two buildings, is seeking rezoning of adjacent land (site of demolished 12010 Sunrise Valley Drive) from Industrial to Planned Residential Community. Brookfield is proposing 2,260 residential units, 1.18 msf of office, 64,000+ sf of retail, and a potential 160-bed hotel on this site ¼ mile south of the future Reston Town Center Metro station. Quadrant signed an expansion for 23,031 sf and SOS International moved into its 21,000-sf expansion at 1881 Campus Commons Drive, bringing this building to 100% occupancy. Strayer vacated and placed on the sublease market 87,414 sf at 2303 Dulles Station Boulevard, continuing the trend of for-profit college downsizing. Scitor vacated its sublease space at 12010 Sunset Hills, and Stanley Martin vacated 31,112 sf at 11111 Sunset Hills Road. With Booz Allen Hamilton having vacated the 396,490-sf 13200 Woodland Park Drive, new owners Federal Capital Partners plan a full renovation of the building, originally built in 2002. The New York State Common Retirement Fund (Liberty Property Trust) sold Presidents Park I/II/III to Normandy Real Estate Partners for $80.5M ($134/sf) in March. The buildings were ~60% occupied at time of sale. Goldman Sachs purchased 13600 & 13650 Dulles Technology Drive (Three & Four Dulles Tech Center) from Dallas-based Lone Star Funds for $55M ($243/sf). Three Dulles Tech is fully leased to Cisco, and Four Dulles Tech is ~70% leased to multiple tenants. AEW Capital Management sold 205 Van Buren (Atrium at Worldgate) to Cambridge Property Group in March for $19.65M. Square Feet, 000 s MSF Net Absorption Deliveries 2,500 2,000 1,500 1,000 500 0-500 06 07 08 09 10 11 12 13 14 15 Q1 16 Net Absorption Deliveries Rate New Leasing Activity 3.00 2.50 2.00 1.50 1.00 0.50 0.00 25% 20% 15% 10% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Q1 Q2 Q3 Q4 5% 0% Rate $32 Outlook The Wiehle-Reston East Metro Station area is in a unique position to be a first-mover before other Silver Line stations begin service in 2020. Comstock Partners has begun construction of its 350,000- sf speculative office building without a prelease, as many office properties within ¼ mile of the Metro station have successfully pushed rents upwards and decreased vacancy. Full Service PSF $30 $28 $26 $24 $22 $20 2011 2012 2013 2014 2015 Q1 2016 Class A Class B cushmanwakefield.com 11

50/66 Market Indicators *Arrows = Current Qtr Trend 19.9% Net Absorption (220,700) SF Under Construction 0 SF Deliveries 0 SF $24.92 FS Merrifield/Route 50 in the Merrifield/Route 50 submarket declined from 20.2% in Q4 2015 to 17.4% in Q1 2016 as Fairfax County Schools took occupancy at 8270 Willow Oaks Corporate Drive, a relocation from 3877 Fairfax Ridge Road. The GSA accounted for the two largest deals of the first quarter as two immigration entities ICE and USCIS renewed for 55,000 sf and 49,000 sf at 2675 and 2677 Prosperity Avenue, respectively. These Metro-accessible buildings are fully leased. Kingfisher Systems, a contractor, renewed for 10,500 sf and expanded by another 10,456 sf at 3110 Fairview Park Drive. This is a small win for the Fairview Park area, as this section of the Merrifield submarket east of I-495 has been hit by a rash of move-outs, most notably Reed Smith which relocated to Tysons, Nobilis which moved to Reston, and eventually General Dynamics, which plans to relocate in the next several years to Reston. Square Feet, 000 s Net Absorption Deliveries 400 200 0-200 -400-600 -800 06 07 08 09 10 11 12 13 14 15 Q1 16 New Leasing Activity Net Absorption Deliveries Rate 25% 20% 15% 10% 5% 0% Rate Fairfax/Oakton/Vienna The submarket experienced several move-outs in Q1, resulting in 406,138 sf of negative absorption. SRA International vacated the entirety of 4300 and 4350 Fair Lakes Court (290,000 sf total) as it finalizes a headquarters move to Westfields office park in Chantilly. The contractor is moving to an open floor plan in a reduction of its sf/user ratio. ManTech vacated and listed for sublease 46,129 sf at 12015 Lee Jackson Highway, and Pulte Homes vacated 34,655 sf at 10600 Arrowhead Drive in a move to Hunters Branch. Leasing activity in the submarket consisted of 29,868 sf of renewals, the largest of which was a 14,003 sf extension by Data Systems Analysts at 10300 Eaton Place, followed by an 8,129 sf extension by Brown Automotive Group at 12500 Fair Lakes Circle. MSF 2.00 1.80 1.60 1.40 1.20 1.00 0.80 0.60 0.40 0.20 0.00 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Q1 Q2 Q3 Q4 Rockville-based Lerner Corporation sold a pair of buildings in Q1 2016 10530 Rosehaven Street and 3211 Jermantown Road to A&A Investment Group of Reston. 3211 Jermantown Road is fully leased to General Dynamics through 2019, and 10530 Rosehaven Street is ~40% leased to multiple users. The combined 279,293 sf sold for $31.1M ($111/sf). Outlook The Fairfax/Oakton/Vienna submarket s current vacancy rate of 21.6% is its highest level in over 10 years. With few public transit options and low developer interest, the submarket must continue to rely on its proximity to Fairfax County Court and other local government operations. $34 $32 Full Service PSF $30 $28 $26 $24 $22 2011 2012 2013 2014 2015 Q1 2016 Merrifield/Route 50 Fairfax/Oakton/Vienna Cushman & Wakefield 12

Route 28 South/Chantilly Market Indicators *Arrows = Current Qtr Trend 25.0% Net Absorption (23,200) SF Under Construction 0 SF Deliveries 150,000 SF $24.72 FS In Q1 2016, the Route 28 South submarket was home to a slate of large long-term renewals, reaffirming the view that we are at the end of a contractor downsizing cycle. CACI renewed for 159,987 sf at 14370 Newbrook Drive and 60,530 sf at 14360 Newbrook Drive, and General Dynamics renewed for 84,652 sf at 14700 Lee Road. Overall vacancy, at 25.0%, was up 0.8 pp from Q1 2015 and 0.2 pp from Q4 2015. in the submarket hit an all-time high of 26.1% in Q2 2015. Outside of the I-395 Corridor, the submarket has the highest sublease vacancy rate of 2.1%, as committed users find it difficult to fill their preexisting obligations in the carcentric, contractor-heavy submarket. After hitting the $30 psf mark in 2009, direct rental rates declined steadily before settling in the $26 psf range. Commodity space in the submarket is not in high demand: Class B vacancy is 27.1% and direct rental rates for Class B product in Route 28 South average $23.26 psf, lower than in any other NoVA submarket except Loudoun. However, with the cycle of contractor downsizing nearing an end and federal procurement expected to increase, the number of massive blocks of vacant space coming back to market should be slowing down. Net Absorption Deliveries Square Feet, 000 s 1,200 1,000 800 600 400 200 0-200 -400-600 06 07 08 09 10 11 12 13 14 15 Q1 16 Net Absorption Deliveries Rate New Leasing Activity 1.20 1.00 30% 25% 20% 15% 10% 5% 0% Rate Boston-based Federal Partners sold 4755 Meadow Wood Lane to Chicago-based Boyd Watterson for $31.8M ($306/sf). The building is fully leased to the GSA. Carr Properties sold 14200 Park Meadow Drive (Victory Point) to Bethesda-based Goldstar Group for $16.3M ($111/sf). Goldstar has traditionally focused on multifamily assets, and this is their first office transaction in several years. MSF 0.80 0.60 0.40 0.20 4850 Stonecroft Boulevard, a 160,000 sf build-to-suit project, has delivered and joins identical 4970 Stonecroft Boulevard next door. These two buildings are believed to be leased to a confidential GSA tenant. 0.00 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Q1 Q2 Q3 Q4 Outlook While not imposing a significant impact on overall market vacancy, several smaller tenant moves in Q1 2016 may provide insight into future trends. ATA Engineering doubled its current footprint at 13921 Park Center Road, expanding by 6,886 sf, and Millenium Space Systems signed a 6,750 sf new lease at 14425 Penrose Place joining other aerospace companies in the Route 28 Corridor such as Inmarsat, Stellar Solutions, and Ball Aerospace. These companies are well-positioned near SpaceX and Orbital ATK, the two market leaders which continue to win contracts for public and private spaceflight and which rely on many small engineering and parts distribution companies for their final products. Full Service PSF $30 $28 $26 $24 $22 $20 $18 2011 2012 2013 2014 2015 Q1 2016 Class A Class B cushmanwakefield.com 13

Loudoun County Market Indicators *Arrows = Current Qtr Trend 19.7% Net Absorption 33,200 SF Under Construction 64,800 SF Deliveries 0 SF $26.13 FS Absorption in Loudoun County for each of the past five years has averaged 66,703 sf. Overall vacancy has trended downward from a high of 27.8% in Q1 2012 to a current 19.7%, a 2.0 pp decline just from the previous quarter. Class A vacancy, at 17.0%, is at its lowest point in 10 years. The largest deal of the quarter was a renewal by Asurion, a phone insurance company, for 82,660 sf at 22894 Pacific Boulevard. On the heels of this was the 74,200-sf renewal by Orbital ATK at 21700 Atlantic Boulevard. The aerospace company recently won both a NASA contract to resupply the International Space Station and an Air Force contract for the development of engines. JK Moving, the largest privately owned mover in the region, plans to develop and move its headquarters to a 42 acre site at the Northeast corner of Route 28 and Route 606 (Old Ox Road) it acquired in November. The plans call for one 80,000 sf office building and four 110,000 sf warehouse buildings. Beacon Capital Partners acquired Pacific Corporate Park, four Raytheon-occupied buildings in Dulles (22110/22260/22265/22270 Pacific Boulevard), from Gramercy Property Trust for $145.5M ($209/sf). Their 696,377 sf are 86% leased to Raytheon for the next 10 years. Two land parcels totaling 22 acres are also included in the sale, and represent potential future expansion space for Raytheon. The sale is part of Gramercy s plan to dispose of select single- and multi-tenant office assets. Net Absorption Deliveries Square Feet, 000 s MSF 600 500 400 300 200 100 0-100 06 07 08 09 10 11 12 13 14 15 Q1 16 Net Absorption Deliveries Rate New Leasing Activity 0.90 0.80 0.70 0.60 0.50 0.40 0.30 0.20 25% 20% 15% 10% 5% 0% Rate Illinois-based Alter Group sold 128,477-sf Loudoun Gateway V for $20M ($156/sf) to New York-based Crown Properties. Carr Properties sold 102,422-sf Loudoun Gateway IV to Snider & Weinstein, a DC-based law firm, for $14.4M ($141/sf). Snider plans on occupying half of the building and potentially expanding into the rest. 0.10 0.00 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Q1 Q2 Q3 Q4 $28 Outlook With an abundance of available development opportunities and cheaper land prices than in other submarkets, several companies are moving ahead on owner-occupied or build-to-suit projects in Loudoun. JK Moving s decision to build a 520,000 sf headquarters on company-owned land joins GEICO s commitment to constructing a 32,675 sf office and training center on three acres it owns in Ashburn. In the same vein, EIT s 64,800 sf build-to-suit is currently under construction at 309 Kelly s Ford Plaza with a delivery scheduled for late 2016. Full Service PSF $26 $24 $22 $20 $18 $16 2011 2012 2013 2014 2015 Q1 2016 Class A Class B Cushman & Wakefield 14

Appendix Table Summaries Metro Washington Office Market Summary: First Quarter 2016p Total Inventory Total Space Vacant Rate Q1 2016 Absorption YTD Absorption Metro Washington Office Market Summary 15 Employment Data 15 Office Availability,, and Net Absorption 16 Trailing 12-Month Data 17 Historical Year-End Data 18 Market Statistics by Class 19-20 Survey of New Office Space by Submarket 21-24 Methodology & Definitions 25 Washington, DC 109,130,610 12,868,353 11.8% 4,297 4,297 Northern Virginia 130,440,659 27,946,515 21.4% (479,132) (479,132) Suburban Maryland 56,647,416 11,797,419 20.8% 141,012 141,012 Regional Totals 296,218,685 52,612,287 17.8% (333,823) (333,823) Metro Washington Current Employment Data Non Farm Employment (Jan-Mar 2015) Non Farm Employment (Jan-Mar 2016p) Jobs Added/ Lost* Percent Change Washington, DC 764,500 774,667 10,167 1.3% Northern Virginia 1,388,133 1,424,433 36,300 2.6% Suburban Maryland 968,200 990,867 22,667 2.3% Regional Totals 3,144,900 3,217,900 73,000 2.3% SOURCE: U.S. Bureau of Labor Statistics (Not seasonally adjusted) * Average per year to date p - preliminary cushmanwakefield.com 15

Appendix Office Availability,, and Net Absorption, First Quarter 2016p Total Inventory New/Relet Space Available Sublet Space Available Total Space Available Rate New/Relet Absorption Sublet Absorption Total Net Absorption Rosslyn 8,638,623 2,383,124 44,504 2,427,628 28.1% 95,414 (19,220) 76,194 Courthouse/ Clarendon/Virginia Square 5,531,747 976,764 49,401 1,026,165 18.6% 144,452 27,696 172,148 Ballston 7,095,248 1,445,180 54,101 1,499,281 21.1% (230,464) 20,623 (209,841) Crystal City/Pentagon City 10,945,402 2,348,975 78,688 2,427,663 22.2% (71,073) (22,661) (93,734) Arlington County 32,211,020 7,154,043 226,694 7,380,737 22.9% (61,671) 6,438 (55,233) RB Corridor 21,265,618 4,805,068 148,006 4,953,074 23.3% 9,402 29,099 38,501 Old Town 7,991,666 657,970 73,232 731,202 9.1% 16,366 (12,954) 3,412 I-395 Corridor 6,058,050 2,108,604 162,949 2,271,553 37.5% 6,433 7,953 14,386 Huntingon/Eisenhower 2,761,709 1,133,291 8,945 1,142,236 41.4% 14,179 3,534 17,713 City of Alexandria 16,811,425 3,899,865 245,126 4,144,991 24.7% 36,978 (1,467) 35,511 Inside the Beltway 49,022,445 11,053,908 471,820 11,525,728 23.5% (24,693) 4,971 (19,722) Annandale/Baileys 1,369,626 419,039 12,584 431,623 31.5% (18,545) 0 (18,545) Merrifield/Route 50 6,608,194 1,071,319 79,660 1,150,979 17.4% 160,647 24,812 185,459 Fairfax/Oakton/Vienna 9,509,467 1,991,266 67,475 2,058,741 21.6% (353,792) (52,346) (406,138) Tysons Corner 22,573,953 4,067,811 298,968 4,366,779 19.3% (96,393) (1,275) (97,668) Reston/Herndon 24,290,837 3,676,735 470,577 4,147,312 17.1% (24,092) (171,796) (195,888) Rt 28 S/Chantilly 8,675,922 1,990,713 182,234 2,172,947 25.0% 25,932 (49,105) (23,173) Springfield 3,268,420 1,047,359 37,159 1,084,518 33.2% (15,188) 78,533 63,345 Fairfax County 76,296,419 14,264,242 1,148,657 15,412,899 20.2% (321,431) (171,177) (492,608) 50-66 Corridor 16,117,661 3,062,585 147,135 3,209,720 19.9% (193,145) (27,534) (220,679) Loudoun County 5,121,795 965,549 42,339 1,007,888 19.7% 49,604 (16,406) 33,198 Outside the Beltway 81,418,214 15,229,791 1,190,996 16,420,787 20.2% (271,827) (187,583) (459,410) Northern Virginia 130,440,659 26,283,699 1,662,816 27,946,515 21.4% (296,520) (182,612) (479,132) 1 The Rosslyn/Ballston (R/B) corridor is comprised of Rosslyn, Clarendon/Courthouse, Virginia Square, and Ballston submarkets. 2 Inside the Beltway is comprised of Arlington County and Alexandria/Outside the Beltway is comprised of Fairfax and Loudoun Counties 3 The 50/66 corridor is comprised of Merrifield, Vienna, Oakton, Fairfax Center, and Fairfax City submarkets. ****New Space Available and New Space Absorption based on buildings delivered 2005 to present P - Preliminary Cushman & Wakefield 16

Appendix Trailing 12-Month Data Total Office Inventory Office Rate Total Office Absorption ` 2nd Qtr 2015 3rd Qtr 2015 4th Qtr 2015 1st Qtr 2016 2nd Qtr 2015 3rd Qtr 2015 4th Qtr 2015 1st Qtr 2016 2nd Qtr 2015 3rd Qtr 2015 4th Qtr 2015 1st Qtr 2016 Rosslyn 8,613,043 8,613,043 8,613,043 8,638,623 30.0% 29.6% 29.1% 28.1% 40,597 32,754 43,613 76,194 Courthouse/ Clarendon/ Virginia Square 5,531,747 5,531,747 5,531,747 5,531,747 22.0% 20.0% 21.7% 18.6% (74,522) 107,963 (89,724) 172,148 Ballston 7,076,618 7,076,618 7,076,618 7,095,248 19.4% 19.5% 18.9% 21.1% 44,254 (10,856) 46,270 (209,841) Crystal City/ Pentagon City 10,945,402 10,945,402 10,945,402 10,945,402 21.1% 20.6% 21.3% 22.2% 116,409 57,069 156,364 (93,734) Arlington County 32,166,810 32,166,810 32,166,810 32,211,020 23.3% 22.7% 22.9% 22.9% 126,738 186,930 156,523 (55,233) RB Corridor 21,221,408 21,221,408 21,221,408 21,265,618 24.4% 23.7% 23.7% 23.3% 10,329 129,861 159 38,501 Old Town 8,191,666 8,191,666 8,191,666 7,991,666 10.0% 9.9% 10.2% 9.1% (54,750) 12,099 (27,928) 3,412 I-395 Corridor 6,058,050 6,058,050 6,058,050 6,058,050 33.4% 35.6% 37.3% 37.5% (1,724) (131,449) (99,645) 14,386 Huntington/ Eisenhower 2,742,707 2,742,707 2,742,707 2,761,709 42.1% 42.1% 42.3% 41.4% (233) 887 (4,877) 17,713 City of Alexandria 16,992,423 16,992,423 16,992,423 16,811,425 23.5% 24.2% 25.0% 24.7% (56,707) (118,463) (132,450) 35,511 Inside the Beltway 49,159,233 49,159,233 49,159,233 49,022,445 23.4% 23.2% 23.6% 23.5% 70,031 68,467 24,073 (19,722) Annandale/Baileys 1,358,705 1,358,705 1,358,705 1,369,626 26.1% 26.5% 30.4% 31.5% (4,983) (5,340) (52,874) (18,545) Merrifield/Route 50 6,608,194 6,608,194 6,608,194 6,608,194 17.5% 19.8% 20.2% 17.4% 67,642 (153,148) (25,923) 185,459 Fairfax/Oakton/Vienna 9,505,603 9,505,603 9,505,603 9,509,467 18.1% 17.7% 17.4% 21.6% (48,140) 34,637 33,223 (406,138) Tysons Corner 23,240,699 23,240,699 23,240,699 22,573,953 18.9% 19.8% 19.1% 19.3% 209,842 (128,206) 160,384 (97,668) Reston/Herndon 24,690,837 24,690,837 24,690,837 24,290,837 16.8% 15.9% 16.4% 17.1% 154,494 206,727 (109,727) (195,888) Rt 28 S/Chantilly 9,242,182 9,242,182 9,242,182 8,675,922 26.1% 24.8% 24.8% 25.0% (169,395) 121,167 (8,266) (23,173) Springfield 3,268,420 3,268,420 3,268,420 3,268,420 39.5% 38.5% 35.1% 33.2% (57,580) 32,026 111,018 63,345 Fairfax County 77,914,640 77,914,640 77,914,640 76,296,419 19.9% 19.8% 19.7% 20.2% 151,880 107,863 107,835 (492,608) 50-66 Corridor 16,113,797 16,113,797 16,113,797 16,117,661 17.9% 18.6% 18.5% 19.9% 19,502 (118,511) 7,300 (220,679) Loudoun County 5,121,795 5,121,795 5,121,795 5,121,795 21.8% 20.7% 20.3% 19.7% (2,269) 55,177 18,110 33,198 Outside the Beltway 83,036,435 83,036,435 83,036,435 81,418,214 20.0% 19.9% 19.7% 20.2% 149,611 163,040 125,945 (459,410) Northern Virginia 132,195,668 132,195,668 132,195,668 130,440,659 21.2% 21.1% 21.2% 21.4% 219,642 231,507 150,018 (479,132) 1 The Rosslyn/Ballston (R/B) corridor is comprised of Rosslyn, Clarendon/Courthouse, Virginia Square, and Ballston submarkets. 2 Inside the Beltway is comprised of Arlington County and Alexandria/Outside the Beltway is comprised of Fairfax and Loudoun Counties. 3 The 50/66 corridor is comprised of Merrifield, Vienna, Oakton, Fairfax Center, and Fairfax City submarkets. 4 The I-395 and Springfield/Newington submarkets were updated in the second quarter of 2012 with additional inventory. p- preliminary cushmanwakefield.com 17

Appendix Historical Year-End Data Total Inventory Rate (%) Total Annual Absorption 2014 2015 Q1 2016 2014 2015 Q1 2016 2014 2015 Q1 2016 Rosslyn 8,695,791 8,613,043 8,638,623 30.6% 29.1% 28.1% (378,346) 159,209 76,194 Courthouse/Clarendon/ Virginia Square 5,531,747 5,531,747 5,531,747 16.5% 21.7% 18.6% 194,219 (81,594) 172,148 Ballston 6,820,962 7,076,618 7,095,248 20.9% 18.9% 21.1% (308,316) 127,316 (209,841) Crystal City/Pentagon City 11,131,931 10,945,402 10,945,402 23.7% 21.3% 22.2% 137,073 346,228 (93,734) Arlington County 32,180,431 32,166,810 32,211,020 23.7% 22.9% 22.9% (355,370) 551,159 (55,233) RB Corridor 21,048,500 21,221,408 21,265,618 23.8% 23.7% 23.3% (492,443) 204,931 38,501 Old Town 8,191,666 8,191,666 7,991,666 9.2% 10.2% 9.1% 89,607 (82,120) 3,412 I-395 Corridor 6,293,050 6,058,050 6,058,050 35.9% 37.3% 37.5% (85,665) (227,461) 14,386 Huntingon/Eisenhower 2,742,707 2,742,707 2,761,709 41.6% 42.3% 41.4% 61,173 (17,885) 17,713 City of Alexandria 17,227,423 16,992,423 16,811,425 24.1% 25.0% 24.7% 65,115 (327,466) 35,511 Inside the Beltway 49,407,854 49,159,233 49,022,445 23.9% 23.6% 23.5% (290,255) 223,693 (19,722) Annandale/Baileys 1,358,705 1,358,705 1,369,626 23.2% 30.4% 31.5% 22,127 (97,367) (18,545) Merrifield/Route 50 6,746,835 6,608,194 6,608,194 19.3% 20.2% 17.4% 101,584 (106,447) 185,459 Fairfax/Oakton/Vienna 9,505,603 9,505,603 9,509,467 17.1% 17.4% 21.6% (86,554) 5,921 (406,138) Tysons Corner 23,638,285 23,240,699 22,573,953 20.1% 19.1% 19.3% (274,063) 67,379 (97,668) Reston/Herndon 24,690,837 24,690,837 24,290,837 15.7% 16.4% 17.1% 64,288 268,104 (195,888) Rt 28 S/Chantilly 9,092,182 9,242,182 8,675,922 22.4% 24.8% 25.0% (378,965) 41,794 (23,173) Springfield 3,268,420 3,268,420 3,268,420 38.1% 35.1% 33.2% (151,859) 73,408 63,345 Fairfax County 78,300,867 77,914,640 76,296,419 18.7% 19.7% 20.2% (703,442) 252,792 (492,608) 50-66 16,252,438 16,113,797 16,117,661 18.0% 18.5% 19.9% 15,030 (100,526) (220,679) Loudoun County 5,072,696 5,121,795 5,121,795 21.0% 20.3% 19.7% 88,059 74,754 33,198 Outside the Beltway 83,373,563 83,036,435 81,418,214 18.8% 19.7% 20.2% (615,383) 327,546 (459,410) Northern Virginia 132,781,417 132,195,668 130,440,659 21.1% 21.2% 21.4% (905,638) 551,239 (479,132) 1 Inside the Beltway is comprised of Arlington County and Alexandria/Outside the Beltway is comprised of Fairfax and Loudoun Counties 2 The Rosslyn/Ballston (R/B) corridor is comprised of Rosslyn, Clarendon/Courthouse, Virginia Square, and Ballston submarkets. 3 The 50/66 corridor is comprised of Merrifield, Vienna, Oakton, Fairfax Center, and Fairfax City submarkets. 4 The I-395 and Springfield/Newington submarkets were updated in the second quarter of 2012 with additional inventory. Cushman & Wakefield 18

Market Statistics Northern Virginia 1st Quarter 2016 Market Statistics Buildings Total Inventory (SF) New/Relet (%) Sublet (%) Total * (%) Net Absorption Current QTR (SF) Under Construction (SF) Average (FS) Alexandria Class A 47 8,193,196 19.0% 2.7% 21.7% 4,634 720,000 $37.96 B 64 6,746,020 31.9% 0.2% 32.1% 46,783 $30.01 C 27 1,872,209 10.2% 0.5% 10.7% (15,906) $24.70 TOTAL 138 16,811,425 23.2% 1.5% 24.7% 35,511 720,000 $31.98 RB Corridor Class A 49 12,757,247 20.7% 0.6% 21.3% 115,975 687,767 $44.04 B 35 6,227,522 23.1% 0.7% 23.8% (31,660) $40.40 C 19 2,280,849 31.7% 0.9% 32.6% (45,814) $32.86 TOTAL 103 21,265,618 22.6% 0.7% 23.3% 38,501 687,767 $40.79 Crystal City/Pentagon City Class A 25 7,794,322 21.9% 1.0% 22.9% (80,428) $38.70 B 14 3,151,080 20.4% 0.1% 20.5% (13,306) $35.58 C - - - - - - - - TOTAL 39 10,945,402 21.5% 0.7% 22.2% (93,734) - $37.69 Tysons Corner Class A 51 12,650,480 17.3% 1.6% 18.9% 110,776 1,790,809 $36.57 B 61 7,745,285 20.6% 1.1% 21.7% (202,879) $29.20 C 30 2,178,188 12.9% 0.6% 13.5% (5,565) $25.45 TOTAL 142 22,573,953 18.0% 1.3% 19.3% (97,668) 1,790,809 $31.65 Reston/Herndon Class A 106 17,967,174 14.6% 2.0% 16.6% (226,408) 354,913 $30.02 B 64 5,649,260 15.8% 2.0% 17.8% 19,775 $25.30 C 15 674,403 24.2% 0.0% 24.2% 10,745 $21.09 TOTAL 185 24,290,837 15.1% 1.9% 17.0% (195,888) 354,913 $28.15 * Current - the vacancy rate is calculated using the combined total of vacant direct, sublease and new space. cushmanwakefield.com 19

Market Statistics Northern Virginia 1st Quarter 2016 Market Statistics Buildings Total Inventory (SF) New/Relet (%) Sublet (%) Total * (%) Net Absorption Current QTR (SF) Under Construction (SF) Average (FS) Merriield/Route 50 Class A 20 3,616,798 19.8% 1.8% 21.6% 169,040 $30.91 B 15 1,566,456 16.6% 1.0% 17.6% (420) $27.05 C 20 1,424,940 6.8% - 6.8% 16,839 $22.39 TOTAL 55 6,608,194 16.2% 1.2% 17.4% 185,459 - $29.50 Fairfax/Oakton/Vienna Class A 25 4,365,706 17.9% 0.1% 18.0% (10,010) $27.91 B 47 4,410,647 23.3% 1.4% 24.7% (400,483) $25.05 C 12 733,114 24.8% 0.0% 24.8% 4,355 $23.52 TOTAL 84 9,509,467 20.9% 0.7% 21.6% (406,138) - $25.32 Route 28 South Class A 49 6,127,730 23.3% 0.9% 24.2% (41,406) $27.17 B 27 2,548,192 22.1% 5.1% 27.2% 18,233 $23.29 C - - - - - - - - TOTAL 76 8,675,922 22.9% 2.1% 25.0% (23,173) - $25.54 Loudoun County Class A 40 3,658,941 16.1% 0.9% 17.0% 41,856 $26.13 B 18 1,462,854 25.6% 0.7% 26.3% (8,658) 64,800 $21.65 C - - - - - - - - TOTAL 58 5,121,795 18.9% 0.8% 19.7% 33,198 64,800 $24.74 Northern Virginia Class A 427 79,443,819 18.9% 1.4% 20.3% 140,929 3,553,489 $34.69 B 352 40,118,363 22.7% 1.2% 23.9% (585,597) 64,800 $30.27 C 144 10,878,477 19.7% 0.4% 20.1% (34,464) $26.69 TOTAL 923 130,440,659 20.1% 1.3% 21.4% (479,132) 3,618,289 $32.14 * Current - the vacancy rate is calculated using the combined total of vacant direct, sublease and new space. Cushman & Wakefield 20

Northern Virginia Survey of Office Space Under Construction/Under Renovation Ballston BUILDING ADDRESS OWNER/DEVELOPER RENTAL RATE STATUS DELIVERY DATE RENTABLE BUILDING AREA AVAILABLE SPACE PERCENT PRELEASED MAJOR TENANTS 1000 North Glebe Road Marymount University N/A U/C 3Q17 166,767 56,631 66% Marymount University Total 166,767 56,631 66% Rosslyn BUILDING ADDRESS OWNER/DEVELOPER RENTAL RATE STATUS DELIVERY DATE RENTABLE BUILDING AREA AVAILABLE SPACE PERCENT PRELEASED MAJOR TENANTS 1201 Wilson Boulevard The JBG Companies $55.00-$65.00 FS U/C 1Q18 552,781 195,700 65% Corporate Executive Board Total 552,781 195,700 65% Eisenhower Avenue BUILDING ADDRESS OWNER/DEVELOPER RENTAL RATE STATUS DELIVERY DATE RENTABLE BUILDING AREA AVAILABLE SPACE PERCENT PRELEASED MAJOR TENANTS 2401 Eisenhower Avenue USAA Real Estate Company/Lowe Enterprises N/A U/C 1Q17 720,000 0 100% The National Science Foundation Total 720,000 0 100% Leesburg BUILDING ADDRESS OWNER/DEVELOPER RENTAL RATE STATUS DELIVERY DATE RENTABLE BUILDING AREA AVAILABLE SPACE PERCENT PRELEASED MAJOR TENANTS 309 Kellys Ford Plaza SE Oaklawn Development Partners N/A U/C 4Q16 64,800 0 100% EIT, LLC Total 64,800-100% Status Operating Expense and Real Estate Tax Base U/C = Under Construction FS = Full Service NN = Plus Electric & Char N/A = No Space Available U/R = Under Renovation N = Plus Electric NT = Plus Taxes NNN = Net of all Operating Expenses and Taxes cushmanwakefield.com 21

Northern Virginia Survey of Office Space Under Construction/Under Renovation Tysons Corner BUILDING ADDRESS OWNER/DEVELOPER RENTAL RATE STATUS DELIVERY DATE RENTABLE BUILDING AREA AVAILABLE SPACE PERCENT PRELEASED MAJOR TENANTS Capital One Tower Capital One N/A U/C 3Q18 975,000 0 100% Capital One Colshire Drive / MITRE IV MITRE N/A U/C 2Q16 340,000 0 100% MITRE Total 340,000-0% Reston BUILDING ADDRESS OWNER/DEVELOPER RENTAL RATE STATUS DELIVERY DATE RENTABLE BUILDING AREA AVAILABLE SPACE PERCENT PRELEASED MAJOR TENANTS 1900 Reston Metro Plaza Comstock Partners N/A U/C 2Q17 354,913 354,913 0% N/A Total 354,913 354,913 0% Route 28 North BUILDING ADDRESS OWNER/DEVELOPER RENTAL RATE STATUS DELIVERY DATE RENTABLE BUILDING AREA AVAILABLE SPACE PERCENT PRELEASED MAJOR TENANTS 22318 Glenn Drive First Potomac Realty Trust N/A U/C 4Q16 182,000 15,000 92% N/A Total 182,000 15,000 92% Northern Virginia Summary RENTABLE BUILDING AREA AVAILABLE SPACE PERCENT PRELEASED 2016 DELIVERIES 880,609 292,316 67% 2017 DELIVERIES 1,762,680 607,244 66% 2018 DELIVERIES 975,000 0 100% 2019 DELIVERIES 0 0 0% TOTAL CURRENTLY UNDER CONSTRUCTION/RENOVATION 3,618,289 899,560 75% Status Operating Expense and Real Estate Tax Base U/C = Under Construction FS = Full Service NN = Plus Electric & Char N/A = No Space Available U/R = Under Renovation N = Plus Electric NT = Plus Taxes NNN = Net of all Operating Expenses and Taxes Cushman & Wakefield 22

Northern Virginia Survey of New Office Space 2015 Deliveries BUILDING ADDRESS OWNER/DEVELOPER STATUS RENTAL RATE SUBMARKET RENTABLE BUILDING AREA NEW SPACE AVAILABLE VACANCY RATE (AS OF CURRENT QUARTER)* PERCENT LEASED UPON DELIVERY 20193 Ashbrook Pl Merritt Properties, LLC Delivered 1Q15 N/A Loudoun 32,675 0 0% 100% 22365 Broderick Dr LGV Group Delivered 1Q15 $22.75 Loudoun 35,368 13,045 37% 26% 43777 Central Station Dr Comstock Holding Companies, Inc Delivered 1Q15 $28.50 Loudoun 99,099 32,690 33% 50% 4870 Stonecroft Blvd Corporate Office Properties Trust Delivered 3Q15 N/A Route 28 South 159,300 0 0% 100% Total 326,442 45,735 14% 77% 2014 Deliveries BUILDING ADDRESS OWNER/DEVELOPER STATUS RENTAL RATE SUBMARKET RENTABLE BUILDING AREA NEW SPACE AVAILABLE VACANCY RATE (AS OF CURRENT QUARTER)* PERCENT LEASED UPON DELIVERY 7940 Jones Branch Dr Pentagon Federal Credit Union Delivered 4Q14 N/A Tysons 296,257 0 0% 53% 3001-3003 Washington Blvd KBS Realty Advisors Delivered 1Q14 Withheld Clarendon/Courthouse/VA Square 306,007 65,926 22% 48% 7900 Tysons One Pl Macerich Delivered 2Q14 $55.00-$65.00 Tysons 528,290 60,244 11% 44% Total 1,130,554 126,170 11% 47% Operating Expense and Real Estate Tax Base * rate for new space- does not include relet or sublet space available FS = Full Service NN = Plus Electric & Char N/A = No Space Available N = Plus Electric NT = Plus Taxes NNN = Net of all Operating Expenses and Taxes cushmanwakefield.com 23

Northern Virginia Survey of New Office Space 2013 Deliveries BUILDING ADDRESS OWNER/DEVELOPER STATUS RENTAL RATE SUBMARKET RENTABLE BUILDING AREA NEW SPACE AVAILABLE VACANCY RATE (AS OF CURRENT QUARTER)* PERCENT LEASED UPON DELIVERY 1812 North Moore Street Monday Properties Delivered 4Q13 $50.00-$65.00 FS Rosslyn 535,381 535,381 100% 0% 1400 Crystal Drive Lowe Enterprises Delivered 3Q13 $44.00-$52.00 FS Crystal City 308,898 230,401 75% 0% 901 South Clark Street Monument Enterprises Delivered 4Q13 N/A Pentagon City 332,084 0 0% 100% 7951-7961 Loisdale Road Rubenstein Partners, LP Delivered 3Q13 Withheld Springfield/Newington 242,272 221,316 100% 0% 5680 King Center Drive Halle Enterprises Delivered 3Q13 $34.50-$37.50 Springfield/Newington 110,047 70,447 64% 0% 6400 Beulah Street Office II Beulah Street LLC II Delivered 3Q13 $32.00 FS Springfield/Newington 35,000 2,353 23% 67% 14399 Penrose Place Zumot Real Estate Management Delivered 2Q13 $29.50 FS Route 28 South 104,000 26,952 26% 25% 4801 Stonecroft Boulevard Duke Realty Delivered 2Q13 N/A Route 28 South 254,578 0 0% 100% Total 1,922,260 1,086,850 57% 33% 2012 Deliveries BUILDING ADDRESS OWNER/DEVELOPER STATUS RENTAL RATE SUBMARKET RENTABLE BUILDING AREA NEW SPACE AVAILABLE VACANCY RATE (AS OF CURRENT QUARTER)* PERCENT LEASED UPON DELIVERY 1776 Wilson Boulevard Skanska Delivered 4Q12 $46.00-$47.00 FS Rosslyn 138,535 11,440 8% 82% 675 North Randolph Street Clark Enterprises/Fred Schnider Investment Group/The Shooshan Company Delivered 1Q12 N/A Ballston 352,740 0 0% 100% 800 North Glebe Road The JBG Companies Delivered 1Q12 $49.00-$52.00 FS Ballston 311,776 73,817 24% 32% 2910 District Avenue Edens, Inc. Delivered 2Q12 N/A Merrifield 78,499 0 0% 7% 6361 Walker Lane ING Clarion Partners, LLC Delivered 1Q12 $41.00-$43.50 FS Springfield/Newington 330,582 166,150 50% 27% 7770 Backlick Road COPT, Inc. Delivered 4Q12 N/A Springfield/Newington 240,565 116,670 48% 43% Total 1,452,697 368,077 25% 75% Operating Expense and Real Estate Tax Base * rate for new space- does not include relet or sublet space available FS = Full Service NN = Plus Electric & Char N/A = No Space Available N = Plus Electric NT = Plus Taxes NNN = Net of all Operating Expenses and Taxes Cushman & Wakefield 24

Methodology & Definitions Methodology Market statistics are calculated from a base building inventory made up of office properties deemed to be competitive in the typical Washington, DC office market. Single-tenant buildings and privately-owned buildings in which the federal government leases space are included. Generally, owneroccupied and federally-owned buildings are not included. Older buildings unfit for occupancy or ones that require substantial renovation before tenancy are generally not included in the competitive inventory. Vacant space is defined as space that is physically vacant and available immediately. Sublet space still occupied by the tenant is not counted as vacant space. Explanation of Terms Total Inventory: The total amount of office space (in buildings greater than 10,000 square feet) that can be rented by a Fourth party. New Space Vacant: First generation, never-occupied office space in newly constructed or substantially renovated buildings, being actively marketed by a landlord. Relet Space Vacant: Secondgeneration, unoccupied office space being actively marketed by a landlord. (Space that is marketed but largely occupied is not counted as vacant space.) Sublet Space Vacant: Secondgeneration, unoccupied space being actively marketed by a tenant. (Sublet space that is marketed but still occupied is not counted as vacant space.) Total Space Vacant: The sum of new, relet, and sublet space that is unoccupied and being actively marketed. Rate: The amount of unoccupied space (new, relet, and sublet) expressed as a percentage of total inventory. (Total Space Vacant divided by Total Inventory.) Total Space Available: The total amount of space, both vacant and occupied, being actively marketed for lease by a tenant or landlord. (This includes space that is currently occupied but marketed for future availability.) Availability Rate: The total amount of space being actively marketed for lease (both vacant and occupied) expressed as a percentage of total inventory. (Total Space Available divided by Total Inventory.) Absorption: The net change in occupied space between two points in time. (Total occupied space in the previous quarter minus total occupied space in the current quarter, quoted on a net, not gross, basis.) New/Relet/Sublet Absorption: The net change in occupied new, relet, and sublet space between two quarters. Total Absorption: The net change in total occupied (new, relet, and sublet) space between two quarters. New Leasing Activity: The sum of all square footage underlying any leases between two quarters. This includes pre-leasing activity as well as expansion. It does not include renewals. Disclaimer This report and other research materials may be found on our website at www.cushmanwakefield.com. This is a research document of Cushman & Wakefield in Washington, DC. Questions related to information herein should be directed to the Research Department at +1 202 463 2100. Information contained herein has been obtained from sources deemed reliable and no representation is made as to the accuracy thereof. About Cushman & Wakefield Cushman & Wakefield is a leading global real estate services firm that helps clients transform the way people work, shop, and live. Our 43,000 employees in more than 60 countries help investors and occupiers optimize the value of their real estate by combining our global perspective and deep local knowledge with an impressive platform of real estate solutions. Cushman & Wakefield is among the largest commercial real estate services firms with revenue of $5 billion across core services of agency leasing, asset services, capital markets, facility services (C&W Services), global occupier services, investment & asset management (DTZ Investors), project & development services, tenant representation, and valuation & advisory. To learn more, visit www.cushmanwakefield.com or follow @CushWake on Twitter. cushmanwakefield.com 25

Visit cushmanwakefield.com for more information on the full range of Cushman & Wakefield commercial real estate services or contact: Nathan Edwards Regional Director 2101 L Street, NW, Suite 700 Washington, DC 20037 +1 202 463 2100 Joseph Wood Research Analyst 2101 L Street, NW, Suite 700 Washington, DC 20037 +1 202 463 2100 Sam Prendergast Research Analyst 2101 L Street, NW, Suite 700 Washington, DC 20037 +1 202 463 2100 Core Services Capital Markets - Debt Placement - Investment Sales - Note Sales - Structured Finance Corporate Services - Facilities Management - Portfolio Administration - Project Management - Strategic Consulting - Transaction Management Project Leasing Project and Development Services Property Management Tenant Representation Practices and Specialties Auction Services Distressed Assets Financial Advisory Food and Beverage Golf and Resort Properties Government Contracting Government Services Healthcare Higher Education Hospitality Law Firm Life Sciences Location Advisory and Incentives Mission Critical Net Lease Not-for-profit Private Client Supply Chain Sustainability Services About Cushman & Wakefield Cushman & Wakefield is a leading global real estate services firm that helps clients transform the way people work, shop, and live. Our 43,000 employees in more than 60 countries help investors and occupiers optimize the value of their real estate by combining our global perspective and deep local knowledge with an impressive Real Estate Types Industrial Land Multi-family Office Retail platform of real estate solutions. Cushman & Wakefield is among the largest commercial real estate services firms with revenue of $5 billion across core services of agency leasing, asset services, capital markets, facility services (C&W Services), global occupier services, investment & asset management (DTZ Investors), project & development services, tenant representation, and valuation & advisory. To learn more, visit www.cushmanwakefield.com or follow @CushWake on Twitter. Publication date: 6.1.16 Copyright 2016 Cushman & Wakefield. All rights reserved.