>> Market Sees Rising Rents Amid Steady Demand

Research & Forecast Report GREATER L.A. OFFICE Q1 216 Accelerating success. >> Market Sees Rising Rents Amid Steady Demand Key Takeaways > The Greater Los Angeles Basin office market recorded positive net absorption for the 8th consecutive quarter at 818,7 square feet (). > The office market vacancy trends remained flat in comparison from last quarter at 15.1%. A longer historical prospective shows that the vacancy rate a year ago stood at 15.7%. > Asking rental rates continue to increase at a quarterly average of 1.6%. First quarter overall rental rates recorded at $2.7 per square foot (P) full service gross (FSG). > There is currently 4.3 million of new construction in the Los Angeles Basin office market of which most is to be delivered in 216. > The overall economcy continues to see solid growth in first quarter. Los Angeles Basin unemployment rates have declined from 6.9% to 5.6% year over year. Los Angeles County Office Market The Los Angeles County office market recorded 712,5 of positive absorption as the total vacancy rate decreased 1 basis points to 15.8%. All submarkets except for the San Gabriel Valley recorded positive demand. Rental rates increased $.5 to $2.91 P FSG as core submarkets such as West Los Angeles and Downtown Los Angeles experienced the upward pressure that was typical of 215, while rental growth in other submarkets slowed. Construction activity remains concentrated in Downtown Los Angeles, West Los Angeles and Central Los Angeles, which accounted for 83% of all construction in the county. February 216 figures for nonfarm employment in Los Angeles County showed unemployment decreasing to 5.6%, a 28.2% decrease year-over-year. Over the past 12 months, Los Angeles County has gained 17,3 jobs for an increase of 2.5%. Market Indicators Relative to prior period Q4 215 Forecast Net Absorption Construction Rental Rate Summary Statistics GLA, Q1 216 Rate Class A Class B All Classes 14.5% 16.2% 15.1% +4-3 217.6 626.9 818.7 Change from Q4 15 (Basis Points) Net Absorption* Construction Completions* Under Construction* 917.2 382.4 1299.6 378.2 1225.9 434.1 Class A Class B All Classes $3.27 $2.14 $2.7 1.9% 1.9% 1.8% 8.6% 6.5% 7.6% *, Thousands Asking Rents GLA, Q1 216 Average Asking Rent (FSG) Change from Q4 15 ($) Y.O.Y. Change (%) GLA Labor Force GLA, Q1 216 Nonfarm Prof. & Business Services Financial Activities 12-mo Employment Growth (%) 2.9% 2.1% 1.7% 12-mo Actual Employment Change +188,5 +21,3 +6,4

Central Los Angeles The Central Los Angeles office market saw continued positive tenant demand in the first quarter of 215 with net absorption recording at 11,7 from 168,2 the previous quarter. The total vacancy rate subsequently increased 16 basis points to 22.2% due to the delievery of 2 office projects. Hollywood s development pipeline currently has 533,6 of office space under construction, which is approximately 12% of all new construction in Los Angeles Basin. Downtown Los Angeles The Downtown Los Angeles market started 216 with 531, of leasing activity. The first quarter lacked a signature large lease signing as small transactions fueled leasing activity. The majority of major move-ins occurred in Bunker Hill with AECOM and Nixon Peabody moving into 3 S Grand Ave and Double Capital expanding by 12,1 at 333 S Grand Ave. The total overall vacancy rate decreased to 17.5% from 17.9% in the previous quarter. Rental rates slightly increased to $3.2 P. Historical v. Rents GLA Office Market Q1 12-16 $ P PER MONTH (WEIGHTED) RENTS VACANCY $2.9 2.% $2.8 18.% 16.% $2.7 14.% $2.6 12.% $2.5 1.% $2.4 8.% 6.% $2.3 4.% $2.2 2.% $2.1.% 1Q12 1Q13 1Q14 1Q15 1Q16 Net Absorption by Submarket GLA Office Market Q1 16 25, 198,5 2, 174,6 West Los Angeles Net absorption recorded at 198,5 in the first quarter, a slowdown from last quarter s 45,1. vacancy rate decreased to 12.1%, and direct weighted average gross asking rents jumped to $4.14 P FSG. 15, 1, 5, (5,) (4,5) 5,5 8,2 98, 11,7 128,1 135,6 Among the major move-ins for first quarter were advertising firm Phelps occupying 3, at 12121 Bluff Creek Dr. in Playa Vista and financial services provider Verifi moving into 29,2 at 567 Wilshire Blvd in Miracle Mile. (1,) SAN GABRIEL VALLEY V & VENTURA CO INLAND EMPIRE ORANGE COUNTY CENTRAL LOS ANGELES SOUTH BAY DOWNTOWN LOS ANGELES TRI CITIES WEST LOS ANGELES V & Ventura County The San Fernando Valley and Ventura County office market started the year off slowly with net absorption recording flat at 5,5. Direct weighted average asking rents slightly increased to $2.2 P FSG. New leasing activity recorded at 658,8 compared to 481,3 in fourth quarter 215. A significant tenant move-in was JL Capital occupying 21,4 in Woodland Hills. The largest lease transaction was Endemol agreeing to move into 74,3 at 516 Lankershim Blvd in North Hollywood. Historical Leasing Activity GLA Office Market Q1 12-16 7,, 6,, 5,, 4,, 3,, 2,, 1,, 1Q12 1Q13 1Q14 1Q15 1Q16 2

South Bay The South Bay office market saw total vacancy decrease during the first quarter to 2.8% from 2.9% last quarter. Direct weighted average asking rents increased to $2.3 P FSG from $2.29 P FSG last quarter. Absorption was positive with 128,1 of net absorption. New leasing activity recorded at 63,1. The El Segundo submarket led all submarkets in both demand and leasing activity as tenants continue to flock to the tech-rich area in search of Silicon Beach-comparable space at a discount. San Gabriel Valley The San Gabriel Valley office market saw increasing vacancy for the fourth time in five quarters, rising from 13.8% to 14.2%. Absorption recorded negative 4,5. The average asking rental rate for the region, however, continued to ascend, reaching $2.21 P FSG from $2.13 P FSG a quarter ago. Despite fluctuations in vacancy, rents have risen for 12 straight quarters since second quarter 213, but are still short of the last market peak of $2.39 P FSG in 27. Historical Net Absorption & Construction Completions GLA Office Market Q1 12-16 2,5, 2,, 1,5, 1,, 5, (5,) (1,,) NET ABSORPTION Investment Trends Chart GLA Office Market Q1 12-16 $45. $4. CONSTRUCTION COMPLETIONS 1Q12 1Q13 1Q14 1Q15 1Q16 9.% 8.% Tri-Cities The Tri-Cities office market recorded 174,6 of positive absorption as the total vacancy rate decreased to 13.3% compared to 14.% one quarter ago. Positive demand led to a decrease in vacancy in the market as Burbank, Monrovia and Glendale all registered net absorption in excess of 5,. Rental rates made small gains, although not at the velocity the market experienced in 215. Investment activity consisted of the 3-building, 462,6 Pasadena Towers trading to CBRE Global Investors from Beacon Capital for the sum of $256M ($553 P). $35. $3. $25. $2. $15. $1. $5. $. 21 211 212 213 214 215 216 $/P Cap Rate Unemployment Rate U.S., CA & LA Feb. 216 7.% 6.% 5.% 4.% 3.% 2.% 1.%.% Orange County The Orange County office market started the year off on a positive note with 594,2 being delivered to the market. The new inventory opens up opportunities for tenants seeking new Class A office space. For example, Mazda, WeWork, and Curse Inc. all singed deals at the newly delivered 2 Spectrum Center Dr. in Irvine. increased in first quarter to 13.1% compared to 12.8% one quarter ago due to partially vacant deliveries of new construction. However, vacancy is expected to trend downward throughout 216. As space options have become limited, asking rental rates have increased by 12.6% from one year ago. 3 5.8% 5.6% 5.4% 5.2% 5.% 4.8% 4.6% 4.4% 5.6% 5.5% 4.9% United States California Los Angeles Basin

Inland Empire vacancy rate for the Inland Empire office market decreased 1 basis points from 16.1% last quarter to 16.%. This is down 12 basis points from vacancy rates reported a year ago. Net absorption for the fourth quarter was 8,2 compared to 48,8 one quarter ago. Submarket Map Leasing activity continues to record above the three year historical average (23, ) recording at 266, for fourth quarter. The average asking rental rate in the Inland Empire office market has been relatively flat over the past two years, fluctuating only $.2 up or down over each quarter recording at $1.7 P FSG. Market Description The Los Angeles Basin office market is comprised of 33.3 million of multi-tenant office space in buildings 25, or larger. It ranks as the third largest office market in the nation, following New York City and the Greater Washington DC area. Most of its space, 55%, was built in or after 1985, making it a relatively young market. It is also relatively decentralized, with only 11% of the space located within Downtown Los Angeles and 89% dispersed throughout the region. 4% of the space is in low-rise buildings, followed by 31% in mid-rise buildings and 29% in high-rise structures. RECENT TRANSACTIONS & MAJOR DEVELOPMENTS Greater Los Angeles County Office Market Q1 216 SALES ACTIVITY PROPERTY ADDRESS SIZE SALE PRICE PRICE P BUYER SELLER 188 Wilshire Blvd., Los Angeles (Portoflio of 4 Bldgs.) 2,159,2 $1,34,416,5 $621 P Douglas Emmett, Inc. The Blackstone Group LP Pasadena Towers., Pasadena (3 Bldgs.) 462,6 $256,, $553 P CBRE Global Investors Beacon Capital Partners 195 Sawtelle Blvd., Los Angeles (Portoflio of 5 Bldgs.) 346,581 $172,5, $498 P Jade Enterprises The Blackstone Group LP 915 Wilshire Blvd., Los Angeles 39,3 $128,45, $329 P Lincoln Property/Rockwood Capital Brickman Associates 643 W. Sunset Blvd., Los Angeles 24,1 $127,, $622 P Tishman Speyer Broadreach Capital Partners LEASING ACTIVITY PROPERTY ADDRESS LEASED LEASE TYPE BLDG CLASS LESSEE LESSOR 241-2421 N Glassell St, Orange 191,127 New Direct B Volt Information Sciences, Inc. Hines/Oaktree Capital 23 E. Imperial Hwy., El Segundo 157,2 Renewal A DirecTV 23 Imperial Highway Holdings 588 W. Sunset Blvd., Hollywood 123,5 Direct-New A NetFlix Hudson Pacific Properties 2 Spectrum Center Dr, Irvine 11,6 New Direct A Mazda Irvine Company 125 Constellation Blvd., Los Angeles 18,3 Direct A International Creative Management JMB Realty MAJOR DEVELOPMENTS PROJECT DEVELOPER SIZE SUBMARKET STATUS ESTIMATED COMPLETION The Boardwalk, Irvine Trammell Crow 537,224 Airport Area Under Construction 3Q 217 The Brickyard (2 bldgs) Tishman Speyer 494,4 Marina Del Rey/ Under Construction Q4 216 4 Spectrum Center, Irvine The Irvine Company 425,44 South County Under Construction 3Q 217 4

OFFICE OVERVIEW Greater Los Angeles County Office Market Q1 216 EXISTING PROPERTIES VACANCY ACTIVITY ABSORPTION CONSTRUCTION RENTS Submarket/ Class Bldgs Inventory Direct Sublease Prior Qtr Leasing Activity Current Qtr Leasing Activity YTD Net Absorption Current Qtr Net Absorption YTD Completions Current Qtr Under Construction Weighted Avg Asking Lease Rate BUILDING CLASS A 865 16,578,923 13.7%.8% 14.5% 14.1% 3,22, 3,22, 217,6 217,6 917,2 3,78,233 $3.27 B 1,838 124,689,842 15.6%.2% 15.9% 16.2% 2,3,6 2,3,6 626,9 626,9 382,4 1,225,9 $2.14 C 399 18,27,73 15.5%.4% 15.9% 16.% 266,2 266,2-25,8-25,8 $1.6 CENTRAL LOS ANGELES Subtotal 114 14,139,7 21.9%.3% 22.2% 2.8% 261,2 261,2 11,7 11,7 39,1 533,6 $2.58 DOWNTOWN LOS ANGELES Subtotal 72 32,258,5 17.%.5% 17.5% 17.9% 531, 531, 135,6 135,6 1,222,7 $3.2 WEST LOS ANGELES Subtotal 433 56,168,4 11.2%.8% 12.1% 12.2% 1,15,8 1,15,8 198,5 198,5 131,3 831,4 $4.14 TRI CITIES Subtotal 189 22,968,8 12.8%.6% 13.3% 14.4% 49,7 49,7 174,6 174,6 54, 113,8 $2.85 SAN FERNANDO VALLEY & VENTURA COUNTY Subtotal 421 33,577,9 14.9%.5% 15.4% 15.4% 658,8 658,8 5,5 5,5 12,933 $2.2 SOUTH BAY Subtotal 276 3,655,2 2.3%.5% 2.8% 2.9% 63,1 63,1 128,1 128,1 13, 38,3 $2.3 SAN GABRIEL VALLEY Subtotal 158 1,342,1 14.2%.% 14.2% 13.8% 67,6 67,6 (4,5) (4,5) $2.21 LOS ANGELES COUNTY SUBTOTAL 1,663 2,19,79 15.3%.6% 15.8% 15.9% 3,655,2 3,655,2 712,5 712,5 75,4 3,13,733 $2.91 ORANGE COUNTY SUBTOTAL 1,16 82,764,324 12.6%.6% 13.2% 12.8% 1,55,6 1,55,6 98, 98, 594,2 1,173,4 $2.4 INLAND EMPIRE SUBTOTAL 423 2,421,424 15.8%.2% 16.% 16.1% 266, 266, 8,2 8,2 $1.72 GREATER LOS ANGELES BASIN TOTAL 3,12 33,295,538 14.6%.6% 15.1% 15.1% 5,471,8 5,471,8 818,7 818,7 1,299,6 4,34,133 $2.7 Note: revisions to the inventory base were made effective Q1 216, historical data reported here reflect these revisions and may not match data reported in previous quarters. 5

Definitions of key terms in this report Rentable Square Feet: Office space in buildings with 25, square feet or more of speculative office space. Includes competitive space in Class A, B and C single-tenant and multi-tenant buildings. Excludes non-competitive owner-occupied buildings, buildings that include 3 percent or greater of medical or retail space, and space that is under-construction, underrenovation or off-market. Class A Space: Space that an image-conscious company would lease for its headquarters. Typically, this space has a very high level of finish and an excellent location, and commands the highest rents in the market. Class B Space: Highly functional, attractive space, but less prestigious than Class A Space, and commanding lower rental rates. Class C Space: Functional, competitive space, but with a lower level of finish and/or a less desirable location than with Class B Space, and commanding lower rental rates. Low-Rise: Buildings with a total of 4 floors or less. Mid-Rise: Buildings with a total of 5 to 13 floors. High-Rise: Buildings with 14 or more floors. Direct : Space in existing buildings that is vacant and immediately available during the quarter for direct lease, plus space that is vacant but not available for direct lease or sublease (for example, that is being held for a future commitment). : Space in existing buildings that is vacant and immediately available during the quarter for direct lease or for sublease, plus space that is vacant but not available for direct lease or sublease. Net Absorption: Net change in occupied square feet from one period to the next (includes the impact of change in vacant space available for sublease). Leasing Activity: Square feet leased from all known transactions completed during the quarter. Excludes lease renewals. Weighted Average Asking Rental Rates: Weighted by the total square feet available for direct lease. Data is based on Full Service Gross rents, and includes all costs associated with occupying the space, including taxes, insurance, maintenance, janitorial service and utilities. Reported on a monthly, per basis. 6 Space Added (Net): square feet added during the quarter via construction completions, including renovated space returned to market, less total square feet taken off-market due to demolitions or conversions. Under Construction: Includes buildings that are in some phase of construction, beginning with foundation work and ending with the issuance of a Certificate of Occupancy Technical Note: Colliers International is continuously refining its database. The data shown in the historical tables and graphics in this report have been adjusted to take into account these changes in the database. This report has been prepared by Colliers International for general information only. Information contained herein has been obtained from sources deemed reliable and no representation is made as to the accuracy thereof. Colliers International does not guarantee, warrant or represent that the information contained in this document is correct. Any interested party should undertake their own inquiries as to the accuracy of the information. Colliers International excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damages arising there from. This report and other research materials may be found on our website at www.colliers.com/greaterlosangeles. 554 offices in 66 countries on 6 continents United States: 153 Canada: 34 Latin America: 24 Asia Pacific: 231 EMEA: 112 UNITED STATES: Greater Los Angeles Office License No. 198231 865 S Figueroa St, Suite 35 Los Angeles, CA 917 MARTIN PUPIL President, Western Region JOHN HOLLINGSWORTH Executive Managing Director CAITLIN MATTESON Research Director Research Services > $2.5 billion in annual revenue > 2. billion square feet under management > Over 16,1 professionals TEL: +1 213 627 1214 FAX: +1 213 327 32 HANS MUMPER Executive Managing Director ROBERT CAUDILL Regional Director/O.C.