The Valley Reaches New Peaks

Research & Forecast Report SAN JOSE SILICON VALLEY The Valley Reaches New Peaks > > Gross absorption soared to 8.9 million square feet. > > Available space rate remained steady despite an increase of inventory. > > Rents increased across all product types. Market Indicators - Santa Clara County Santa Clara County Median Household Income Population Growth Santa Clara County Unemployment Rate The first half of has come to a close and the Silicon Valley economy is firing on all cylinders. According to the State of California Employment Development department, Santa Clara County s unemployment rate is now at 2.3 percent. The uptick in employment can be attributed to key technology companies strategically expanding their foothold in the Silicon Valley. The Valley s unique ecosystem, fostering a culture of progress and innovation, coupled with an unrivaled pool of tech talent, continues to drive commercial real estate demand. Despite major challenges such as lack of affordable housing, outdated infrastructure, and a potential city head tax on large employers in tech-saturated cities like Mountain View and Sunnyvale, there is no sign of slowdown from both occupiers and developers alike. Vacancy $114,600 Market Trends Relative to prior quarter 9.4% 2.3% US Unemployment Rate -18 4.0% Q3 * Silicon Valley s commercial property market saw unprecedented volumes of leasing activity in the second quarter, with gross absorption reaching 8.94 million square feet, up 69.5 percent from the previous quarter and up 17.6 percent from. Furthermore, the Valley experienced a positive 3.75 million square feet of net absorption, up 128.3 percent from the previous quarter and up 38.9 percent from the same period last year. Roughly half of the activity came in June, boosted by Facebook s 750,000-square-foot deal at Ardenwood Corporate Park in Fremont, which also happened to be the largest deal of the quarter. The total availability across all product types sits at 30.2 million square feet while vacant space is at 18.3 million square feet, translating to an overall availability rate of 8.5 percent, and vacancy rate of 5.2 percent. Vacancy vs. Availability Rates Silicon Valley All Products 8% 6% 4% 2% Net Absorption Under Construction Office Rental Rate R&D Rental Rate Industrial/Warehouse Rental Rate *Projected Summary Statistics Silicon Valley All Products Previous Quarter Current Quarter Overall Vacancy Rate 5.71% 5.17% Net Absorption 1,643,505 3,752,738 Construction Completed 514,415 2,767,171 Under Construction 6,084,539 5,795,481 Office Asking Rents* $4.25 FS $4.33 FS R&D Asking Rents* $2.21 NNN $2.25 NNN Industrial Asking Rents* $1.29 NNN $1.31 NNN Warehouse Asking Rents* $0.96 NNN $1.03 NNN *Asking Rents Reported Monthly 0% 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 Availability Rate Vacancy Rate

Office > > Gross absorption recorded 5.1 million square feet. > > Net absorption measured 2.6 million square feet. > > Weighted asking rents reached $4.33 full-service. Silicon Valley Office Rent vs. Vacancy 25% 20% 15% $5.00 $4.00 $3.00 Office product is king of Silicon Valley. The market was particularly busy in the second quarter, with gross absorption reaching 5.1 million square feet. One reason for the 124.0 percent spike quarter over quarter is due to a number of massive deals taking longer to close, and spilling over from a flat first quarter. 10% 5% 0% Total Vacancy Rate Asking Rents (FS) $2.00 $1.00 $0.00 The most notable office deal of the quarter came from Micron Technology leasing 603,666 square feet in North San Jose. Micron secured three times more space than it currently occupies in the Valley, with plans to sublease one of the buildings. The market for large blocks of office space is dwindling, and large users are thinking ahead and securing space in advance while they still can. Roughly 70 percent of office space under construction is preleased in the Silicon Valley, and with competition from the big four, (Google, Apple, Facebook, and Amazon), users are strategically planning ahead. Office activity from the big four remained active. Amazon secured an additional 385,000 square feet in Sunnyvale at Jay Paul s Moffett Towers I development, bringing Amazon s total footprint in the Moffett area to 1.7 million square feet, an unofficial H perhaps. Verb Surgical, a joint venture between Google and Johnson & Johnson, leased 234,096 square feet at the Stadium Tech Center on the border of North San Jose and Santa Clara. The aforementioned top three deals of the quarter, while geographically lie in three different cities, are within five miles of each other along the 237 freeway corridor at the base of the San Francisco Bay, a strategic location on the light rail halfway between the CalTrain and the Milpitas BART, which is expected to start operation next year. Undoubtedly, accessibility and proximity to public transit is a must-have when it comes to office location. More than 2.3 million square feet of new office space came online in the second quarter, most of which was absorbed by the big four. The largest property to come online was Apple s 777,170-square-foot build-to-suit campus in Sunnyvale followed by the 245,738-squarefoot property at 1625 Plymouth Street in Mountain View, fully preleased to Google. At the end of the second quarter 4.7 million square feet of office space remained under construction. Office Availability Rates Select Silicon Valley Cities Morgan Hill Mountain View Palo Alto San Jose Santa Clara Sunnyvale West Valley 3.1% 5.0% 7.2% 8.2% 10.2% 16.5% 18.8% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% 20.0% Silicon Valley Office Net Absorption vs. Gross Absorption Millions () 6.0 5.0 4.0 3.0 2.0 1.0 Despite the surge of new construction hitting the market, both the availability and vacancy rates compressed in the second quarter. The availability space rate dropped 18 basis points to 11.62 percent while vacancy rate fell 91 basis points to 7.08 percent. As expected, weighted asking rents inversely rose to $4.33 full-service, up $0.08 from the prior quarter. 0.0-1.0-2.0 Gross Absorption (Qtr) Net Absorption (Qtr) 2 Silicon Valley Research & Forecast Report Second Quarter Colliers International

SAN FRANCISCO BAY FREMONT 680 Top Office Lease Transactions MILPITAS Micron Technology, @First Technology Center 110-130 Holger Way, San Jose 280 PALO ALTO MTN. VIEW 237 603,666 Amazon, Moffett Towers 1140-1160 Enterprise Way, Sunnyvale SUNNYVALE LOS ALTOS SANTA CLARA 385,000 85 CUPERTINO/ SARATOGA SAN JOSE 87 Verb Surgical, Stadium Tech Center 5490 Great America Pkwy, Santa Clara 234,096 CAMPBELL/ LOS GATOS Facebook, The Village at San Antonio 401 San Antonio Road, Mountain View Sublease 225,000 MORGAN HILL/ GILROY Nutanix 1740 Technology Drive San Jose /Expansion 176,004 Top Office Sale Transactions = Colliers International Deal PROPERTY ADDRESS SIZE SELLER BUYER 160 W Santa Clara Street San Jose 214,118 PNC Realty Investors Beacon Capital Partners 152 N 3rd Street, San Jose 138,100 RPRO 152N3, LLC Urban Community 601 California Avenue, Palo Alto 111,653 The Blackstone Group Morgan Stanley 5150 El Camino Real, Los Altos 76,525 TA Associates Dutchints Development, LLC 2900 Lakeside Drive Santa Clara 36,287 Princeton Investment Group CS Lakeside Santa Clara Silicon Valley Research & Forecast Report Second Quarter Colliers International 3

R&D > > Gross absorption recorded 2.77 million square feet. > > Net absorption measured positive 731,000 square feet. > > Weighted asking rents reached $2.25 NNN. Silicon Valley R&D Rent vs. Vacancy 25% 20% 15% $2.50 $2.00 $1.50 Momentum for research development (R&D) product rolled over into the second quarter of the year with leasing activity reaching 2.77 million square feet, up 38.6 percent from the previous quarter. For the first time since, net absorption was in the positive at 730,692 square feet. 10% 5% 0% Total Vacancy Rate Asking Rents (NNN) $1.00 $0.50 $0.00 The most significant deal of the quarter came from Facebook with the signing of 750,000-square-foot Ardenwood Corporate Park in Fremont, which happened to be the largest deal of the quarter across all product types. The deal is a calculated move for the social media giant, expanding directly across the bay from its Menlo Park headquarters, and creating a sister campus accessible to workforce living in the East Bay. Facebook is said to also be exploring passenger rail infrastructure over the Dumbarton Bridge, a move to connect their growing Fremont/Newark operations base to their Menlo Park headquarters. R&D Availability Rates Select Silicon Valley Cities Fremont Milpitas 8.7% 16.6% Morgan Hill 3.9% Mountain View 6.4% San Jose 16.5% Santa Clara 8.0% Sunnyvale 4.8% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% Facebook signs 750,000 in Ardenwood, Fremont No new R&D projects have completed thus far in, and for the fourth consecutive quarter inventory for R&D product shrank. The Silicon Valley has only two R&D projects under construction - the 36,120-square-foot project 2747 Park Boulevard, Palo Alto preleased to Tencent and the still available 119,700-square-foot development at 3223 Hanover Street, Palo Alto. Silicon Valley R&D Net Absorption vs. Gross Absorption Millions () 5.0 4.0 3.0 2.0 The base for R&D product contracted for the fourth consecutive quarter, and as expected, availability and vacancy rates followed suit. Mid-way through the availability space rate stood at 10.01 percent, down 33 basis points from the previous quarter, while vacancy stood at 6.65 percent, down 68 basis points for the same time period. The average weighed asking rent reached a new record peak at $2.25 NNN, up $0.04 from the previous quarter. 1.0 0.0-1.0-2.0-3.0 Gross Absorption (Qtr) Net Absorption (Qtr) 4 Silicon Valley Research & Forecast Report Second Quarter Colliers International

SAN FRANCISCO BAY FREMONT 680 Top R&D Lease Transactions Facebook, Ardenwood Corporate Park 6503-7601 Dumbarton Circle, Fremont MILPITAS 754,162 280 PALO ALTO MTN. VIEW 237 ALOM Technology, Warm Springs Business Park 48021-48027 Warm Springs Blvd, Fremont 106,100 SUNNYVALE Miasole LOS ALTOS SANTA CLARA 2590 Walsh Avenue, Santa Clara 85 110,778 CUPERTINO/ SARATOGA SAN JOSE 87 Cepheid, Caribbean Corporate Center 1315 Chesapeake Terrace Sunnyvale CAMPBELL/ LOS GATOS 110,217 Stanford Medical Property 1701 Page Mill Road, Palo Alto Sublease 116,172 MORGAN HILL/ GILROY Top R&D Sale Transactions = Colliers International Deal PROPERTY ADDRESS SIZE SELLER BUYER 2700 Zanker Road, San Jose 464,636 MWest Properties Lincoln Properties 2515-2545 N 1st Street, San Jose 249,832 Lincoln Property Company Ocean/West JV Hana 5200 Great America Parkway, Santa Clara 224,522 Aslan Newcastle Great America Nixon Peabody, LLC 450 Holger Way, San Jose 98,423 KBS Realty Advisors Microchip Technology Silicon Valley Research & Forecast Report Second Quarter Colliers International 5

Industrial Silicon Valley Industrial Rent vs. Vacancy > > Gross absorption recorded 592,000 square feet. > > Net absorption measured positive 184,600 square feet. > > Weighted asking rents reached $1.31 NNN. 15% 12% 9% $1.50 $1.20 $0.90 Leasing activity for industrial product in the second quarter registered at 592,000 square feet, down 30.63 percent from the previous quarter. The drop is in part due to an inflated first quarter, when Google purchased three industrial buildings totaling 564,000 square feet at Midpoint@237. Compared to the same period last year, leasing activity is up 2.24 percent. For the third consecutive quarter net absorption was positive with 184,600 square feet. 6% 3% 0% Vacancy Rate Asking Rents (NNN) $0.60 $0.30 $0.00 The market remains extremely tight and it is not surprising that, with the availability rate at 3.00 percent, four of the five top deals in the quarter were renewals. With no new industrial product coming online in the first half of the year, and only two industrial projects under construction, meeting industrial space requirements in the Valley will remain challenging. Industrial Availability Rates Select Silicon Valley Cities Fremont 7.4% The largest deal of the quarter, and the only one registering over 50,000 square feet, was ALOM Technology renewing their 120,433-square-foot space at 48105 Warm Springs Boulevard, Fremont. In fact, three of the top five industrial deals were based in Fremont, a city that bridges Silicon Valley and the East Bay, and is an attractive lower cost alternative to Santa Clara County. The much anticipated Pacific Commons Industrial Center in Fremont is currently under construction and will add 815,000 square feet of high-demand industrial product to Silicon Valley, but not until 2019. At the end of, the vacancy rate stood at an all-time low of 0.98 percent, down 45 basis points from the previous quarter. The average weighed asking rent reached a high of $1.31 NNN, up $0.02 from the previous quarter. Gilroy 1.3% Milpitas 2.1% Morgan Hill 4.4% San Jose 2.4% Santa Clara 1.2% Sunnyvale 0.9% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% Silicon Valley Industrial Net Absorption vs. Gross Absorption Millions () 2.0 1.5 1.0 0.5 0.0-0.5-1.0-1.5 Gross Absorption (Qtr) Net Absorption (Qtr) 6 Silicon Valley Research & Forecast Report Second Quarter Colliers International

SAN FRANCISCO BAY FREMONT 680 Top Industrial Lease Transactions ALOM Technology, Warm Springs Business Park MILPITAS 48105 Warm Springs Boulevard, Fremont 120,433 PALO ALTO 280 MTN. VIEW 237 FM Industries, Inc 45861-45873 Hotchkiss Street, Fremont LOS ALTOS SUNNYVALE SANTA CLARA 40,875 85 CUPERTINO/ SARATOGA SAN JOSE 87 Celestica Corporation 49235 Milmont Drive, Fremont 38,558 CAMPBELL/ LOS GATOS KB Entertainment 495 E Brokaw Road, San Jose 25,572 MORGAN HILL/ GILROY Stouss Brothers Construction 700-705 Comstock Street, Santa Clara 19,920 Top Industrial Sale Transactions = Colliers International Deal PROPERTY ADDRESS SIZE SELLER BUYER 105 Leavesley Road, Gilroy 169,980 Santacroce Family Trust Jacob O Sullivan 260 Phelan Avenue, San Jose 27,000 Charles and Pamela Pitts Industrial Metals Recycling 538 Trimble Road, San Jose 11,723 Richard Hanson Lo-Jo, Inc 1244 Birchwood Drive, Sunnyvale 10,000 Dirk and Julie Rohloff Warner Swirshy Worldwide, LLC 1080 Oakland Road, San Jose 4,000 Perry Trust Meza, LLC Silicon Valley Research & Forecast Report Second Quarter Colliers International 7

Warehouse Silicon Valley Warehouse Rent vs. Vacancy > > Gross absorption recorded 470,000 square feet. 15% $1.50 > > Net absorption measured positive 220,000 square feet. 12% $1.20 > > Weighted asking rents reached $1.03 NNN. 9% $0.90 Warehouse leasing activity climbed to 470,000 square feet, up 231.7 percent from the previous quarter and up 70.5 percent from the same period last year. Net absorption was positive 220,000 square feet, a result of a strong quarter. 6% 3% 0% Vacancy Rate Asking Rents (NNN) $0.60 $0.30 $0.00 Much like the industrial sector, warehouse space is extremely limited. As a result, many companies choose to renew rather than explore relocation. The most significant warehouse transaction, which accounted for nearly half of the quarter s leasing volume, was CEVA Logistics renewing their 212,840 square feet at 1710 Little Orchard Street in San Jose. Available warehouse space is in short supply, and users often face two options: stay put or leave the Valley. Warehouse Availability Rates Select Silicon Valley Cities Fremont 2.6% Gilroy 0.4% Milpitas 16.8% Morgan Hill 0.0% San Jose 1.9% Santa Clara 7.1% Sunnyvale 0.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% Source: Colliers International The much awaited McCarthy Creekside development in Milpitas was completed in the second quarter and infused the market with 450,610 square feet of warehouse product, partially preleased to Motors in the first quarter. As a result of new product coming online, the availability rate rose to 4.15 percent from 2.97 percent and vacancy rate increased to 1.50 percent from 0.95 percent quarter over quarter. The average weighted asking rent reached a high of $1.03 NNN, up $0.07 from the previous quarter. Silicon Valley Warehouse Net Absorption vs. Gross Absorption Millions () 2.0 1.5 1.0 0.5 0.0-0.5-1.0 Gross Absorption (Qtr) Net Absorption (Qtr) 8 Silicon Valley Research & Forecast Report Second Quarter Colliers International

SAN FRANCISCO BAY FREMONT 680 Top Warehouse Lease Transactions San Jose Trading Co, Lundy Business Complex MILPITAS 1935-1955 Lundy Avenue, San Jose 40,647 PALO ALTO 280 MTN. VIEW 237 Porcelanosa USA 2086-2110 Zanker Road, San Jose SUNNYVALE 65,384 LOS ALTOS SANTA CLARA Lockheed Martin Corporation CUPERTINO/ SARATOGA 85 SAN JOSE 87 326-330 Charcot Avenue, San Jose 51,175 CAMPBELL/ LOS GATOS CEVA Logistics, Little Orchard Business Park 1710 Little Orchard Street, San Jose 212,840 MORGAN HILL/ GILROY K1 Speed 2925 Mead Avenue, Santa Clara 63,061 Top Warehouse Sale Transactions = Colliers International Deal PROPERTY ADDRESS SIZE SELLER BUYER 18210 Butterfield Boulevard, Morgan Hill 113,256 MWest Properties Golden State Assembly Silicon Valley Research & Forecast Report Second Quarter Colliers International 9

Market Comparisons Silicon Valley OFFICE MARKET CLASS TOTAL INVENTORY DIRECT VACANT SUBLEASE VACANT DIRECT OCCUPIED SUBLEASE OCCUPIED TOTAL AVAILABLE AVAILABILITY RATE CURR QTR AVAILABILITY RATE PREV QTR NET ABSORPTION CURR QTR YTD COMPLETED IN CURR QTR UNDER CONST. FS WTD AVG ASKING CAMPBELL / LOS GATOS A 1,920,942 271,999 33,093 157,699 32,341 495,132 25.8% 25.7% 27,050 11,043 - - $4.27 B 2,310,399 96,810-103,150 29,166 229,126 9.9% 8.2% (9,310) (11,335) - - $3.45 C 235,576 4,778 4,051 1,950-10,779 4.6% 3.7% - 1,460 - - $- Total 4,466,917 373,587 37,144 262,799 61,507 735,037 16.46% 15.5% 20,084 1,168 - - $4.04 CUPERTINO / SARATOGA A 4,303,562 32,824 36,111 60,218 6,364 135,517 3.1% 3.2% - (1,469) - - $4.98 B 2,991,430 46,988 38,892 34,912 3,029 123,821 4.1% 4.4% 7,260 1,517 - - $3.84 C 178,010 9,686 - - - 9,686 5.4% 5.4% (384) (2,477) - - $3.21 Total 7,473,002 89,498 75,003 95,130 9,393 269,024 3.6% 3.7% 6,876 (2,429) - - $4.50 FREMONT / MILPITAS A 884,642 118,537-38,274 38,208 195,019 22.0% 21.2% (626) (2,295) - - $2.37 B 1,705,421 76,885 1,825 17,384 5,087,181 5.9% 7.8% 5,965 5,887 - - $2.73 C 581,654 9,080-21,542-30,622 5.3% 2.0% (3,570) 1,330 - - $1.56 Total 3,171,717 204,502 1,825 77,200 43,295 326,822 10.3% 10.5% 1,769 4,922 - - $2.42 GILROY / MORGAN HILL A 418,491 7,537 - - - 7,537 1.8% 1.8% - 3,946 - - $2.40 B 434,506 5,660 - - - 5,660 1.3% 1.3% - - - - $1.75 C 266,251 21,250-6,785 2,746 30,781 11.6% 9.7% - - - - $2.10 Total 1,119,248 34,447-6,785 2,746 43,978 3.9% 3.6% - 3,946 - - $2.10 LOS ALTOS A 295,515 9,493 7,322-11,924 28,739 9.7% 5.7% (39) (6,380) - - $6.88 B 507,803 26,005-13,294-39,299 7.7% 7.2% 454 15,322 - - $5.47 C 382,918 8,380 1,732 3,372 3,471 16,955 4.4% 3.9% (4,090) (1,720) - - $5.68 Total 1,186,236 43,878 9,054 16,666 15,395 84,993 7.2% 5.8% (3,675) 7,222 - - $5.99 MOUNTAIN VIEW A 4,741,243 202,701 11,326 144,317 72,054 430,398 9.1% 12.1% 257,446 306,945 245,738 907,918 $7.37 B 1,326,168 17,043 8,258 54,493 18,444 98,238 7.4% 6.0% 7,787 53,640 - - $5.36 C 512,873 1,991-8,180-10,171 2.0% 4.4% 2,500 5,400 - - $7.54 Total 6,580,284 221,735 19,584 206,990 90,498 538,807 8.2% 10.2% 267,733 365,985 245,738 907,918 $7.13 PALO ALTO A 5,504,740 65,574 6,450 118,960 176,533 367,517 6.7% 6.1% 324,271 438,505 327,718 29,989 $8.03 B 4,456,932 43,361 11,791 132,265 161,158 348,575 7.8% 4.6% 20,739 35,753 - - $5.45 C 1,834,251 12,979 9,960 47,823 66,434 137,196 7.5% 2.7% (7,050) (1,904) - - $7.58 Total 11,795,923 121,914 28,201 299,048 404,125 853,288 7.2% 5.1% 337,960 472,354 327,718 29,989 $6.80 SAN JOSE A 15,750, 2,037,347 239,820 820,443 376,992 3,474,602 22.1% 21.1% 163,617 669,668 150,000 679,351 $3.94 B 9,802,554 626,557 45,336 211,104 95,142 978,139 10.0% 10.7% 35,878 45,849-96,000 $3.20 C 4,051,195 270,437 2,924 150,233 11,851 435,445 10.7% 9.6% 7,185 6,214 - - $2.88 Total 29,604,629 2,934,341 288,080 1,181,780 483,985 4,888,186 16.5% 16.1% 206,680 721,731 150,000 775,351 $3.70 SANTA CLARA A 10,657,323 658,385 999,617 199,662 342,511 2,200,175 20.6% 23.6% 387,938 865,745 150,000 224,000 $3.91 B 5,153,114 486,970 21,822 267,703 45,689 822,184 16.0% 13.8% (49,798) (88,034) - - $3.20 C 431,892 38,745 - - - 38,745 9.0% 10.2% 3,867 11,177 - - $2.88 Total 16,242,329 1,184,100 1,021,439 467,365 388,200 3,061,104 18.8% 20.4% 342,007 788,888 150,000 224,000 $3.75 SUNNYVALE A 13,517,780 105,369 19,612 105,565 167,167 397,713 2.9% 3.5% 1,443,105 1,437,840 1,443,105 2,731,642 $5.67 B 1,496,180 55,163 7,795 6,958 12,743 82,659 5.5% 5.3% (1,223) 14,952 - - $3.65 C 458,185 3,960-1,440-5,400 1.2% 0.5% (1,400) (2,520) - - $2.95 Total 15,472,145 164,492 27,407 113,963 179,910 485,772 3.1% 3.6% 1,440,482 1,450,272 1,443,105 2,731,642 $5.47 SILICON VALLEY TOTALS A 57,995,118 3,509,766 1,353,351 1,645,138 1,224,094 7,732,349 13.3% 14.3% 2,602,762 3,723,548 2,316,561 4,572,900 $4.58 B 30,184,507 1,481,442 135,719 841,263 370,458 2,828,882 9.4% 8.5% 17,752 73,551-96,000 $3.66 C 8,932,805 381,286 18,667 241,325 84,502 725,780 8.1% 6.7% (2,942) 16,960 - - $3.56 Total 97,112,430 5,372,494 1,507,737 2,727,726 1,679,054 11,287,011 11.6% 11.8% 2,617,572 3,814,059 2,316,561 4,668,900 $4.33 QUARTERLY COMPARISON AND TOTALS 2Q-18 97,112,430 5,372,494 1,507,737 2,727,726 1,679,054 11,287,011 11.6% 11.8% 2,617,572 3,814,059 2,316,561 4,668,900 $4.33 1Q-18 92,629,441 5,810,230 1,591,325 2,416,968 1,109,508 10,928,031 11.8% 12.1% 1,198,407 1,198,407 514,415 5,321,200 $4.25 4Q-17 91,834,042 6,433,489 1,817,975 1,990,313 826,923 11,068,700 12.1% 12.2% 1,473,550 5,772,461 1,728,351 3,639,873 $4.27 3Q-17 89,909,440 5,853,504 2,203,083 1,781,618 1,106,564 10,944,769 12.2% 11.7% 1,468,728 4,298,911 2,236,017 5,131,403 $4.33 2Q-17 87,580,374 5,633,294 1,789,215 1,577,070 1,218,946 10,218,525 11.7% 11.7% 2,666,093 2,830,183 3,447,606 6,661,318 $4.40 10 Silicon Valley Research & Forecast Report Second Quarter Colliers International

Market Comparisons Silicon Valley R&D, INDUSTRIAL & WAREHOUSE MARKETS TYPE TOTAL INVENTORY DIRECT VACANT SUBLEASE VACANT DIRECT OCCUPIED SUBLEASE OCCUPIED TOTAL AVAILABLE AVAILABILITY RATE CURR QTR AVAILABILITY RATE PREV QTR NET ABSORPTION CURR QTR YTD COMPLETED CURR QTR UNDER CONSTR. NNN WTD AVG ASKING CAMPBELL R&D 1,378,087 69,923-45,386 2,715 118,024 8.6% 11.4% (1,600) (1,600) - - $2.37 IND 995,329 6,825-4,910-11,735 1.2% 1.0% - (10) - - $2.60 TOTAL 2,373,416 76,748-50,296 2,715 129,759 5.5% 7.0% (1,600) (1,610) - - $2.38 CUPERTINO R&D 3,098,845-16,490 - - 16,490 0.5% 0.9% - - - - $3.15 TOTAL 3,098,845-16,490 - - 16,490 0.5% 0.9% - - - - $3.15 FREMONT R&D 20,613,930 915,048 108,683 571,158 203,392 1,798,281 8.7% 11.8% 757,313 935,344 - - $1.40 IND 10,247,698 122,452-499,299 140,400 762,151 7.4% 5.9% 74,422 18,656-814,852 $1.23 WSE 8,631,205 - - 228,200-228,200 2.6% 1.5% - - - - $0.79 TOTAL 39,492,833 1,037,500 108,683 1,298,657 343,792 2,788,632 7.1% 8.0% 831,735 954,000-814,852 $1.36 GILROY R&D 372,117 27,042-49,080-76,122 20.5% 31.2% - - - - $0.87 IND 1,813,262 23,633 - - - 23,633 1.3% 1.3% - 4,386 - - $- WSE 3,812,905-14,909 - - 14,909 0.4% 0.4% - (14,909) - - $0.95 TOTAL 5,998,284 50,675 14,909 49,080-114,664 1.9% 2.6% - (10,523) - - $0.88 LOS GATOS R&D 342,752 967 - - - 967 0.3% 0.0% (967) (967) - - $2.70 TOTAL 342,752 967 - - - 967 0.3% 0.0% (967) (967) - - $2.70 MILPITAS R&D 13,826,788 1,328,473 53,636 778,540 139,120 2,299,769 16.6% 18.5% 52,074 308,545 - - $1.89 IND 2,943,652 - - 50,088 12,858 62,946 2.1% 2.7% 1,078 11,096 - - $1.10 WSE 5,165,900 396,157-277,940 195,691 869,788 16.8% 11.1% 136,632 136,632 450,610 - $0.99 TOTAL 21,936,340 1,724,630 53,636 1,106,568 347,669 3,232,503 14.7% 14.7% 189,784 456,273 450,610 - $1.68 MORGAN HILL R&D 2,874,866 67,044-23,932 21,539 112,515 3.9% 3.3% 9,764 23,447 - - $0.91 IND 2,474,361 38,231-12,590 57,156 107,977 4.4% 3.5% 15,320 13,422 - - $1.05 WSE 482,538 - - - - - 0.0% 0.0% - - - - $- TOTAL 5,831,765 105,275-36,522 78,695 220,492 3.8% 3.1% 25,084 36,869 - - $0.96 MOUNTAIN VIEW R&D 14,041,570 195,573 170,768 283,364 253,483 903,188 6.4% 5.4% 11,080 (117,771) - - $3.46 IND 1,588,183 64,792-46,670-111,462 7.0% 7.2% 14,666 (2,933) - - $3.36 TOTAL 15,629,753 260,365 170,768 330,034 253,483 1,014,650 6.5% 5.6% 25,746 (120,704) - - $3.45 PALO ALTO R&D 13,679,328 43,495 124,827 107,029 192,262 467,613 3.4% 3.8% (50,277) 27,357-155,820 $6.42 TOTAL 13,679,328 43,495 124,827 107,029 192,262 467,613 3.4% 3.8% (50,277) 27,357-155,820 $6.42 SAN JOSE R&D 42,478,355 4,489,319 735,311 1,082,271 702,694 7,009,595 16.5% 15.3% (113,947) (815,349) - - $2.11 IND 24,883,321 194,583 74,853 290,114 38,248 597,798 2.4% 2.1% 47,366 653,666-155,909 $0.93 WSE 17,080,937 147,985-93,331 82,218 323,534 1.9% 2.6% 107,236 93,575 - - $0.87 TOTAL 84,442,613 4,831,887 810,164 1,465,716 823,160 7,930,927 9.4% 8.9% 40,655 (68,108) - 155,909 $1.99 SANTA CLARA R&D 18,981,351 1,044,536 118,127 117,564 230,288 1,510,515 8.0% 9.3% 120,586 274,093 - - $2.14 IND 11,486,745 43,126-76,514 19,000 138,640 1.2% 1.8% 20,836 10,854 - - $1.27 WSE 3,355,255 48,700-184,355 6,500 239,555 7.1% 1.8% (24,000) (29,200) - - $1.31 TOTAL 33,823,351 1,136,362 118,127 378,433 255,788 1,888,710 5.6% 6.0% 117,422 255,747 - - $2.03 SUNNYVALE R&D 21,700,576 356,017 339,316 168,353 181,631 1,045,317 4.8% 5.1% (53,334) 35,482 - - $2.50 IND 5,906,557 33,872-17,538-51,410 0.9% 1.0% 10,918 18,368 - - $1.75 WSE 1,687,947 - - - - - 0.0% 0.0% - - - - $- TOTAL 29,295,080 389,889 339,316 185,891 181,631 1,096,727 3.7% 4.0% (42,416) 53,850 - - $2.49 SILICON VALLEY TOTALS R&D 153,388,565 8,537,437 1,667,158 3,226,677 1,927,124 15,358,396 10.0% 10.4% 730,692 668,581-155,820 $2.25 IND 63,548,999 539,714 82,353 1,006,852 275,662 1,904,581 3.0% 2.8% 184,606 727,505-970,761 $1.31 WSE 40,396,206 592,842 14,909 783,826 284,409 1,675,986 4.1% 3.0% 219,868 186,098 450,610 - $1.03 TOTAL 257,333,770 9,669,993 1,764,420 5,017,355 2,487,195 18,938,963 7.4% 7.4% 1,135,166 1,582,184 450,610 1,126,581 $2.12 QUARTERLY COMPARISON AND TOTALS 2Q-18 257,333,770 9,669,993 1,764,420 5,017,355 2,487,195 18,938,963 7.4% 7.4% 1,135,166 1,582,184 450,610 1,126,581 $2.12 1Q-18 257,119,272 10,869,927 1,694,970 4,217,647 2,197,331 18,979,875 7.4% 7.6% 447,018 447,018-762,339 $2.08 4Q-17 257,470,315 11,868,163 1,612,940 4,283,652 1,909,358 19,674,113 7.6% 8.0% (173,516) (681,905) - 642,639 $1.96 3Q-17 257,478,522 12,379,628 1,646,586 4,492,318 2,066,994 20,585,526 8.0% 7.4% (622,479) (508,389),374 486,730 $1.92 2Q-17 256,983,032 11,999,386 1,512,372 3,407,995 1,981,581 18,901,334 7.4% 7.1% 35,064 114,090-588,104 $1.86 Silicon Valley Research & Forecast Report Second Quarter Colliers International 11

69 countries $2.7 billion in annual revenue 2.0 billion square feet under management 15,400 professionals and staff FOR MORE INFORMATION: Reed Payne Executive Managing Director CA License No. 00818935 +1 408 282 3801 reed.payne@colliers.com RESEARCH DEPARTMENT: Lena Tutko Research Manager +1 408 282 3898 lena.tutko@colliers.com COLLIERS INTERNATIONAL SILICON VALLEY 450 West Santa Clara Street San Jose, CA 95113 USA +1 408 282 3800 colliers.com/siliconvalley $116 billion in total transaction value *All statistics are for, are in U.S. dollars and include affiliates. About Colliers International Group Inc. Colliers International Group Inc. (NASDAQ: CIGI) (TSX: CIGI) is a top tier global real estate services and investment management company operating in 69 countries with a workforce of more than 12,000 professionals. Colliers is the fastestgrowing publicly listed global real estate services and investment management company, with corporate revenues of $2.3 billion ($2.7 billion including affiliates). With an enterprising culture and significant employee ownership and control, Colliers professionals provide a full range of services to real estate occupiers, owners and investors worldwide, and through its investment management services platform, has more than $20 billion of assets under management from the world s most respected institutional real estate investors. Colliers professionals think differently, share great ideas and offer thoughtful and innovative advice to accelerate the success of its clients. Colliers has been ranked among the top 100 global outsourcing firms by the International Association of Outsourcing Professionals for 13 consecutive years, more than any other real estate services firm. Colliers is ranked the number one property manager in the world by Commercial Property Executive for two years in a row. Colliers is led by an experienced leadership team with a proven record of delivering more than 20% annualized returns for shareholders, over more than 20 years. For the latest news from Colliers, visit Colliers.com or follow us on Twitter: @Colliers and LinkedIn. colliers.com/siliconvalley Copyright Colliers International. The information contained herein has been obtained from sources deemed reliable. While every reasonable effort has been made to ensure its accuracy, we cannot guarantee it. No responsibility is assumed for any inaccuracies. Readers are encouraged to consult their professional advisors prior to acting on any of the material contained in this report.