1 ST QUARTER 2018 MARKET OVERVIEW. Greg Marx Associate. Randy LaChance, SIOR Senior Vice President. Presented By:

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1 K E A R N Y M E S A M U L T I - T E N A N T M A R K E T 1 ST QUARTER 2018 MARKET OVERVIEW Presented By: Randy LaChance, SIOR Senior Vice President Greg Marx Associate

2 TABLE OF CONTENTS MARKET OVERVIEW...1 COMPETING PROPERTIES...2 AVAILABILITY REPORT...4 SPACE AVAILABLE BY SIZE...9 LEASE COMPARABLES...10 NET ABSORPTION ANALYSIS...12 COMPARABLE SALES TRANSACTIONS...13

3 MARKET OVERVIEW Kearny Mesa Industrial/Flex Market Total Market: 16,607,093 SF Multi-Tenant 17% Multi-Tenant: Flex: Other Industrial: 2,776,061 SF 4,820,385 SF 9,010,674 SF Other 54% Flex 29% Kearny Mesa Industrial/Flex Market Total Size: 14,981,623 Square Feet Occupancy Report Kearny Mesa Multi-Tenant Market Total Size: 2,776,061 Square Feet Occupancy Report 100% 98% 100% 95% 97% 98% 98% 98% 98% 97% 97% 98% 98% 96% 96% 96% 95% 95% 95% 95% 95% 94% 94% 94% 95% 95% 94% 94% 94% 94% 95% 95% 95% 96% 95% 96% 96% 95% 95% 95% 94% 94% 94% 93% 93% 92% 90% 90% 85% 85% 80% 80% 75% 1st Qtr '13 1st Qtr '14 1st Qtr 15 1st Qtr 16 1st Qtr 17 1st Qtr 18 75% 1st Qtr '13 1st Qtr '14 1st Qtr 15 1st Qtr 16 1st Qtr 17 1st Qtr 18 1

4 2 COMPETING PROPERTIES

5 Map # Picture Project Name Address Project Size (SF) Building Size (SF) Asking Rate Occupancy Kearny Mesa Industrial Park Convoy Court 187, & Up Manulife Clairemont Mesa Blvd, Convoy Ct, Ronson Rd, Vickers St 708, & Up Kearny Mesa West Ronson Rd, Opportunity Rd, Engineer Rd 210, & Up $1.35-$1.45 MG (CAM=$0.13) 89% $1.55-$1.90 Base Year Gross 95% $1.40-$1.50 MG (CAM=$0.25) 90% 4 5 Convoy Ronson Industrial Park Ronson Rd 75, & Up $1.40 IG 90% Mesa Verde Business Park Convoy Ct 66, & Up $1.25 IG 100% 6 Ronson Court Business Park Ronson Ct 70, & Up $1.10 NNN (NNN=$0.21) 94% 7 Arvco Convoy Ct; Ronson Ct; Brinell St 127,200 1,080 & Up $1.18-$1.20 IG 93% 8 Aero Place Business Park Aero Pl 66,273 2,000 & Up $1.50 MG (CAM=$0.12) 100% 9 Cabrillo Commerce Center Magnatron Blvd; Kearny Mesa Rd 214, & Up $1.45 MG (CAM=$0.16) 100% 10 Cabrillo Business Park Complex St 110, & Up $1.45 MG (CAM=$0.16) 96% 11 Kearny Mesa Business Center Kearny Villa Rd 106,310 1,210 & Up $1.50 IG 100% 12 Kearny Villa Commerce Center Chesapeake Dr 83, & Up $1.50 MG (CAM=$0.12) 98% 13 Canyon Industrial Center Chesapeake Dr 198, & Up $1.50 MG (CAM=$0.17) 88% 14 Balboa Business Center Ridgehaven Ct; Viewridge Ave 262,951 1,756 & Up $1.40-$1.50 NNN (NNN=$0.29) 91% 3

6 4 AVAILABILITY REPORT Project # Picture Project Name/Address 1 KEARNY MESA INDUSTRIAL PARK Unit Size (Sq. Ft.) Lease Rate Office % 7374 Convoy Court 4,075 $1.35 MG (CAM=$0.13) 30% 7170 Convoy Court 8,400 $1.35 MG (CAM=$0.13) 80% 7010 Convoy Court 1,257 $1.40 MG (CAM=$0.13) 40% Convoy Court 4,108 $1.35 MG (CAM=$0.13) 90% 6990 Convoy Court 1,618 $1.40 MG (CAM=$0.13) 20% 6996 Convoy Court 1,257 $1.45 MG (CAM=$0.13) 40% 2 KEARNY MESA # Clairemont Mesa Blvd 2,800 $1.60 IG 50% 2 KEARNY INDUSTRIAL PARK Clairemont Mesa Blvd. 8,000 $1.75 FSG 50% 7718 Clairemont Mesa Blvd. 2,000 $1.60 FSG 20% 7510 Clairemont Mesa Blvd., # $1.90 FSG 100% 7510 Clairemont Mesa Blvd, # 212 2,352 $1.70 FSG 100% 7510 Clairemont Mesa Blvd # $1.70 FSG 100% 7510 Clairemont Mesa Blvd #206 1,184 $1.70 FSG 100% 7510 Clairemont Mesa Blvd. # $1.70 FSG 100%

7 Project # Picture Project Name/Address 2 JOHN HANCOCK BUSINESS PARK Unit Size (Sq. Ft.) Lease Rate Office % 8245 Ronson Road, Suite A 820 $1.60 IG 100% 8245 Ronson Road, Suite D 820 $1.60 IG 100% 8340 Vickers Street, Suite I 810 $1.60 IG 100% 8245 Ronson Road, Suites L & M 3,240 $1.55 IG 20% 8145 Ronson Road, Suites A-C & I-L 6,285 $1.60 IG 75% 2 KEARNY MESA # Convoy Court 1,850 $1.60 IG 20% 7926 Convoy Court 1,850 $1.55 IG 30% 7960 Convoy Court 1,430 $1.60 IG 100% 2 KEARNY MESA # Ronson Road, Suites L-M 2,500 $1.55 IG 20% 3 KEARNY MESA WEST 7297 Ronson Road, Suite D 1,072 $1.50 MG (CAM=$0.25) TBD 7283 Engineer Road, Suite F 2,437 $1.50 MG (CAM=$0.25) 50% 7257 Ronson Road, Suite D 5,670 $1.40 MG (CAM=$0.25) 50% 7290 Engineer Road, Suite D 1,460 $1.50 MG (CAM=$0.25) 80% 7270 Engineer Road, Suite C 3,301 $1.50 MG (CAM=$0.25) 35% 7283 Engineer Road, Suite E 1,460 $1.50 MG (CAM=$0.25) 70% 7343 Engineer Road, Suite M 2,086 $1.50 MG (CAM=$0.25) 20% 7330 Opportunity Road, Suites A-B 1,458 $1.50 MG (CAM=$0.25) 100% 7330 Opportunity Road, Suite J 1,581 $1.50 MG (CAM=$0.25) 100% 7343 Ronson Road, Suite I 891 $1.50 MG (CAM=$0.25) 40% 5

8 6 AVAILABILITY REPORT (CONT.) Project # Picture Project Name/Address 4 CONVOY RONSON INDUSTRIAL PARK Unit Size (Sq. Ft.) Lease Rate Office % 7904 Ronson Road, Suites A-B 6,566 $1.40 IG 20% 7924 Ronson Road, Suite F 1,350 $1.40 IG 20% 5 MESA VERDE BUSINESS PARK 100% Leased 6 RONSON COURT BUSINESS PARK 4883 Ronson Court, Suites F-H 2,034 $1.00 NNN (NNN=$0.21) 40% 4891 Ronson Court, Suites A-B 1,337 $1.10 NNN (NNN=$0.15) 40% 4891 Ronson Court, Suite G 667 $1.10 NNN (NNN=$0.15) 100% 7 ARVCO 4898 Ronson Court, Suite E 1,800 $1.20 IG 15% 4676 Brinell Street, Suite 101 7,200 $1.18 IG 10%

9 Project # Picture Project Name/Address 8 AERO PLACE BUSINESS PARK 100% Leased Unit Size (Sq. Ft.) Lease Rate Office % 9 CABRILLO COMMERCE CENTER 100% Leased 10 CABRILLO BUSINESS PARK 5450 Complex Street, Suite 308 1,558 $1.50 MG (CAM=$0.16) 40% 5450 Complex Street, Suite 210 1,640 $1.50 MG (CAM=$0.16) 40% 5466 Complex Street, Suite 201 1,502 $1.50 MG (CAM=$0.16) 40% 11 KEARNY MESA BUSINESS CENTER 100% Leased 7

10 8 AVAILABILITY REPORT (CONT.) Project # Picture Project Name/Address 12 KEARNY VILLA COMMERCE CENTER Unit Size (Sq. Ft.) Lease Rate Office % 9159 Chesapeake Drive 1,600 $1.50 MG (CAM=$0.12) 40% 13 CANYON INDUSTRIAL CENTER 9540 Chesapeake Dr., Suite ,965 $1.45 MG (CAM=$0.23) 15% 9560 Chesapeake Dr., Suite ,602 $1.45 MG (CAM=$0.23) 20% 14 BALBOA BUSINESS CENTER 4393 Viewridge Avenue, Suites C-D 5,954 $1.40 NNN (NNN=$0.30) 80% 9471 Ridgehaven Court, Suite C 3,460 $1.40 NNN (NNN=$0.31) 50% 9541 Ridgehaven Court 13,500 $1.50 NNN (NNN=$0.29) 50%

11 SPACE AVAILABLE BY SIZE Total Vacancies Total Vacancies Signed Leases Total Vacancies Signed Leases 3 Signed Leases ,800 Square Feet 1,801 to 3,500 Square Feet 3,501 Square Feet & Up Vacancies Last Quarter Vacancies This Quarter Signed Leases 9

12 10 LEASE COMPARABLES Project # Picture Lease Start Address Lessee/ Lessor Sq. Ft. % Office Lease Rate Net Effective Annual Increases/ Term TIA/ Concessions 2 03/01/2018 Kearny Mesa # Convoy Court, Suite L Backyard Pool & Spa John Hancock Real Estate 1,000 SF 20% $1.50 G $ G 3.5% 62 Months $3.00/SF 2 Months 2 03/01/2018 Kearny Mesa # Convoy Court Gold Country Vending John Hancock Real Estate 1,750 SF 20% $1.40 G $1.48 G 3% 36 Months $0.00/SF 0 Months *Lessee represented by Voit Real Estate Services. 3 04/14/2018 Kearny Mesa West Business Park 7343 Ronson Road, #M Remcon Design Build, Inc. Kearny Mesa West, LLC 2,806 SF 20% $1.40 MG $1.02 MG 3.0% 38 Months $0.00/SF 2 Months 10 04/01/2018 Cabrillo Business Park 5450 Complex Street, #301 Nexon Corporation Gateway Cabrillo, Inc. 1,638 SF 40% $1.40 MG $1.42 MG 4.0% 37 Months $0.00/SF 1 Month

13 Project # Picture Lease Start Address Lessee/ Lessor Sq. Ft. % Office Lease Rate Net Effective Annual Increases/ Term TIA/ Concessions 10 05/01/2018 Cabrillo Business Park Complex Street, #601, 602 & 502 Water Works, Inc. Gateway Cabrillo, Inc. 13,217 SF 20% $1.33 MG $1.34 MG 3.5% 18 Months $0.00/SF 0 Months 12 04/01/2018 Kearny Villa Commerce Center 9117 Chesapeake Drive Santa Fe Contracting H.G. Fenton 12,000 SF 20% $1.50 G $ 1.55 MG 4% 36 Months $0.00/SF 0 Months *Lessee & Lessor represented by Voit Real Estate Services /01/2018 Balboa Business Center 9570 Ridgehaven Court, #A Itav Solutions, In. Masy Investment Company 4,900 SF 20% $1.36 NNN $1.49 NNN 3.0% 84 Months $20.00/SF 0 Months - 06/01/2018 Mercury Tech Park 8125 Mercury Court, #100 Z-Communications Portous Realty Investments 7,411 SF 40% $1.15 NNN $1.17 NNN 3.0% 63 Months $ Months *Lessee represented by Voit Real Estate Services. 11

14 12 NET ABSORPTION ANALYSIS SF SF SF SF 0 SF SF SF SF SF SF SF SF SF Q Q Q Q Q Q Q Q Overall Total Net Absorption Multi Tenant Total Net Absorption

15 COMPARABLE SALES TRANSACTIONS 2014 Sales Project Name: Project Address: Project Size: Project Type: Rexford Kearny Mesa Inds. Complex , Convoy Court 187,763 SF Industrial Close Date: 12/2014 Sales Price: $32,300,000 Price PSF: $ Cap Rate: 5.71% 2015 Sales No Multi-Tenant properties sold in Sales No Multi-Tenant properties sold in Sales Project Name: Project Address: Project Size: Project Type: Mercury Tech Center Mercury Court Multi-Property Sale (6 Properties) 80,410 SF Industrial Close Date: 02/2017 Sales Price: $17,300,000 Price PSF: $ Cap Rate: No cap rate Project Name: Project Address: Project Size: Project Type: Kearny Mesa Landing Ponderosa Avenue 155,524 SF Flex Close Date: 06/15/2017 Sales Price: $28,525,000 Price PSF: $ Cap Rate: 6.55% 13

16 K E A R N Y M E S A M U L T I - T E N A N T M A R K E T 1 ST QUARTER 2018 MARKET OVERVIEW Presented By: Randy LaChance, SIOR Senior Vice President Lic # rlachance@voitco.com Greg Marx Associate Lic # gmarx@voitco.com 4180 La Jolla Village Dr., Suite 100, La Jolla, CA Fax Lic # Licensed as a Real Estate Salespersons by the CA Bur of Real Estate. The information contained herein has been obtained from sources we deem reliable. While we have no reason to doubt its accuracy, we do not guarantee it Voit Real Estate Services, Inc. All Rights Reserved. Real People. Real Solutions. is a registered trademark of Voit Real Estate Services.