Commercial Investment Real Estate May/June 2019

YoY Rent Growth (All Asset Classes) as of January 2019 Las Vegas Rising Absorption for Industrial Sector 7.9% Phoenix Cushman & Wakefield’s 2019 North American Industrial Outlook predicts a healthy 495 msf of North American industrial absorption in 2019-2020, with 245 msf for the U.S. in 2019 and low- to mid-200 msf in 2020. 6.5% 5.9% Atlanta 5.3% Inland Empire Top Individual Market Predictions for 2019-2020 5.2% YoY Multifamily Rents Up San Jose (in MSF) Dallas/Fort Worth While overall U.S. multifamily rents remained flat in 2018 at $1,420 a month, year-over-year growth was 3.3 percent, up 10 basis points — matching the highest rent growth since November 2016. Top markets for growth include: YoY Rent Growth (All Asset Classes) as of January 2019 Riverside-San Bernardino-Ontario, Calif. 7.9% 6.5% Las Vegas Phoenix Source: JLL 5.3% San Jose, Riverside- Atlanta Calif. San Bernadino- Ontario, Calif. 51.0 36.4 Chicago 5.9% 5.2% MSF 23.0 Pennsylvania I-81/I-78 Corridor 19.8 Atlanta 19.5 Toronto 17.4 YoY Rent Growth (All Asset Classes) as of January City Houston 12.9 Baltimore Las Vegas 11.4 Indianapolis Phoenix 10.7 Columbus, Ohio Atlanta 10.2 Inland Empire CRE Use of Proptech Practices Practice Already Trying Considering Using in a It Out in a Use in Next Significant Way Limited Way 18 Months Online lending marketplaces 23% 38% 29% Artificial intelligence/ machine learning 20% 28% 41% Smart building systems 28% 33% 27% Online investment market- places and crowdfunding 22% 38% 28% Online property exchanges 16% 28% 43% Source: Altus Group, “The Innovation Opportunity in Commercial Real Estate: A Shift in PropTech Adoption and Investment” CIREMAGAZINE.COM A GROWING Movement? San Jose Agrihoods are a new trend in community planning. The residential or mixed-use developments are built Rent Growth (All Asset Classes) around a working farm or YoY community garden. The as of January show 2019 prom- Urban Land Institute notes that agrihoods ise thanks to an increased focus on health and social interaction, as well as awareness of environmental benefits of local food sources. The projects also can have a good return on investment, ULI reports, because of their proximity to parks and open space and can be less expensive to build and operate than other amenities such as golf courses. Projects are underway in 27 U.S. states and Canadian provinces. Source: Urban Land Institute, “Agrihoods: Cultivating Best Practices” May | June 2019 7

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