Commercial Investment Real Estate July/August 2018 | Page 9

Occupier Trends Impacting Property Preferences Which occupier trends will have the most impact on the investment appeal of real estate? 37% 33% 22% Last-Mile Logistics 52% Flexible Space Diversification Away From Traditional Office/Retail Centers Automation 20% Smart Buildings 18% Experiential Retail 7% 6% Co-Living Other Source: CBRE Research, Americas Investor Intentions Survey, 2018 Virtual Reality and Other Disrupters Impacting Retail New Industrial Inventory in Select Markets “Retail technologies have been stealthily invading the landlord and tenant space to expand the real estate market interdimensionally. The concept of an alternate or extended reality is concrete and palpable. It no longer exists in theory but is actively practiced by a handful of enterprising retailers and brands to captivate consumers’ imagination and engage them with products and services on a cerebral level.” YOY Ending 1Q18 Los Angeles 30 msf Dallas 22 msf Philadelphia 16 msf Houston Source: Avison Young Industrial Market Report % Change (YOY) CMBS Conduit Loans Within FEMA-Designated Counties Hospitality 54% ▲ Multifamily 18% ▲ Hurricane Primary Areas of Impact in the U.S. Industrial 14% ▲ –1% ▼ Harvey Office Retail –27% ▼ Healthcare –39% ▼ CCIM.COM # of Counties Conduit Loan Count Unpaid Principal Balance Texas 39 1,075 $15.24B Irma Florida & U.S. Virgin Islands 62 1,706 $28.62B Maria Puerto Rico & U.S. Virgin Islands 78 35 $932.61M Lending Volume by Property Type, 1Q18 Source: Mortgage Bankers Association 7 msf — The R/evolution Starts Now: Retail Refusing to Fail, Colliers Retail Market Spotlight Report Property Type U.S. Total 209 msf Source: DBRS Viewpoint as of Oct. 12, 2017 July | August 2018 7