Commercial Investment Real Estate March/April 2017

MARKET TRENDS Nationwide: Major Markets Show Variation OFFICE 4% Recession 12% Recovery 61% Expansion Years Ahead Show Intriguing Forecasts Compared to 2016 Real GDP, % (AR) Unemployment Rate, % Federal Funds Rate, % 10-year U.S. Treasury Note, % 23% Contraction Office Sector RETAIL Net Absorption, msf Vacancy Rate Asking Rent psf 3% Recession 56% Recovery 18% Contraction INDUSTRIAL 2017 2018 1.6% 4.9% 0.4% 1.9% 2.3% 4.5% 1.0% 2.6% 3.0% 4.4% 1.8% 3.1% 50.2 13.2% $29.20 54.9 13.1% $30.25 45.9 13.4% $30.77 $446.0 $455.7 $422.0 7.8% 6.4% 6.0% 7.2% 5.0% 3.1% Capital Markets Total Investment Sales, $ Bil. NCREIF Unlevered Total Returns, Qtly % Change Moody’s/RCA CPPI, All Property Types, YOY % 23% Expansion 2016 U.S. Economy Source: U.S. Macro Forecast by Cushman & Wakefield Research 4% Recovery 62% Expansion Disruption Transforming Auto Industry Automotive revenue pool will rise and diversify toward on-demand mobility services and data-driven services. USD billions. Traditional Automotive Revenues New Automotive Revenues, 2030 Vehicle sales dominant 34% Contraction 6,700 Today Recurring revenues Significantly increasing 3% Recovery 12% Recession 1,500 MULTIFAMILY 56% Contraction 3,500 30 720 1,200 4,000 2,750 29% Expansion Source: PriceWaterhouseCoopers 6 March | April 2017 Recurring revenues • Shared mobility penetrates dense and suburban cities with new car sharing and e-hauling business models* • USD 100 billion from data connectivity services, 30% including apps, navigation, entertainment, remote services, and software upgrades Aftermarket • Growth with increased sales • Higher annual maintenance spent for shared vehicles • Up to 90% lower average crash repair per automotive vehicle One-time vehicle sales • ~2% annual global increase in vehicle unit sales driven by macroeconomic growth in emerging economies • Price premiums paid for electric powertrains and autonomous driving technology features *Does not include traditional taxi and rentals Source: McKinsey & Company COMMERCIAL INVESTMENT REAL ESTATE

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