I industrial I flex I office Ipsbusinessparks.com

COMPANY UPDATENOVEMBER 2019

701 WESTERN AVENUE | GLENDALE, CA 91201 | 818.244.8080 | PSBUSINESSPARKS.COM

NORTHERN VIRGINIA INDUSTRIAL PARKLORTON, VIRGINIA

2 Company Update

3. Company Overview

4. Executive Team

5. Investment Strategy

9. Diverse Customer Base

13. Same Park NOI

15. Key Performance Metrics

16. Acquisition Update

17. Development Update

FEATURES

18. Social Responsibility

3Company Update

Excludes 1.3 million RSF of assets held for sale as of September 30, 20191

PS Business Parks, Inc. (NYSE: PSB), a member of the S&P MidCap 400, is a real estate investment trust (REIT) that acquires, develops, owns and oper-ates commercial properties, primarily multi-tenant industrial, flex and office space. The Company wholly owns nearly 27.5 million rentable square feet (“RSF”) concentrated in 12 submarkets spread across six states and holds a 95% interest in a 395-unit apartment complex.

SAME PARK OCCUPANCY as of September 30, 2019

94.5%

LIGHT INDUSTRIAL / FLEX product in gateway markets

88%

FORTRESS BALANCE SHEET with strong liquidity and no

debt outstanding

TENURED MANAGEMENT TEAM focused on disciplined growth to

generate quality operational cash flow

27.5 MILLION SQUARE FEET of infill real estate

395 MULTIFAMILY UNITSin Tysons, VA

A- CORPORATE CREDIT RATING

by Standard & Poor’s

CONSISTENT OUTPERFORMANCE of the S&P 500 and RMZ since going public in 1998

COMPANY OVERVIEW

1 1

TOTAL OCCUPANCY as of September 30, 2019

94.4%

1

1

1

Maria has served as CEO since July 2016, and at which time she was also elected as a member of our Board. Maria has over 34 years of experi-ence with the Company and its affiliates and has held a va-riety of roles during that time, serving most recently as Chief Administrative Officer.

Jeff HedgesExecutive Vice President & CFO

Maria HawthornePresident & CEO

John PetersenExecutive Vice President & COO

Trenton GrovesSenior Vice President & CAO

Coby HolleyVice President, Real Estate

Trenton joined the Company in 2004 and has served as CAO since September 2018. Prior to that, he was Vice Presi-dent, Finance, and Corporate Controller. Before joining PSB, Trenton was a manager at both, Ernst & Young, LLP and Arthur Andersen, LLP.

John has served as COO since he joined the Company in 2004. Prior to joining PSB, John was Senior Vice Presi-dent, for Equity Office Proper-ties from 2001 to 2004, and Senior Vice President with Spieker Properties from 1995 to 2001.

Jeff joined the Company as CFO in September 2018. Prior to joining PSB, Jeff was Senior Vice President for Invitation Homes from 2015 to 2018, and prior to that he was a Senior Manager at Ernst & Young, LLP from 2006 to 2015.

Coby joined the Company in 2003 and he has served as Vice President, Real Estate since 2014, overseeing the Company’s acquisitions, dis-positions and development. Prior to joining PSB, Coby was a Senior Vice President at CBRE.

Stuart has been with the Company for 18 years and has served as Vice President, Southern California since De-cember 2016, and prior to that was Regional Manager of Op-erations. Before joining PSB, Stuart was with Transwestern and Fujita USA.

Chris AuthVice President, Washington Metro

Stuart HutchisonVice President, Southern California

David VicarsVice President, Southeast

Rich GuertinVice President, Florida

David joined the Company in 2004 and has served as Vice President, Southeast (Texas and Florida). Prior to joining PSB, David spent over 25 years working in a leadership capac-ity at Compass Management, Leasing/Equitable Real Estate and The Horne Company.

Chris has been with the Com-pany for 13 years, serving in a variety of roles. Since 2014, he has led the Washington Metro Division as its Divisional Vice President. Prior to joining PSB, he worked for Cumming Properties, a private owner/developer in the Greater Boston area.

Rich has been with PSB for 8 years and was recently promoted to Senior Regional Vice Presi-dent. Rich has 30+ years of ex-perience and prior to joining PSB, he worked for Paragon, Inc. and Oakwood Corporate Housing.

Dick ScottVice President, Northern CaliforniaDick has served as Vice Presi-dent, Northern California since he joined the Company in 2012. Prior to joining PSB, Dick served as the Managing Director of Grubb & Ellis in Sili-con Valley, was Vice President for Equity Office Properties, and was a Partner in several real estate development LLCs.

Eddie RuizVice President & Director, FacilitiesEddie has served as Vice Presi-dent, Director of Facilities since he joined the Company in 1999. Prior of joining PSB, Eddie spent over 20 years working as a con-sultant for several architectural and engineering firms.

Gene UhlmanVice President, ConstructionGene has served as VP of Con-struction since 2012 and has 17 years of experience with the Company. Prior to joining PSB, Gene was a Real Estate Manager for Murdock Devel-opment for 14 years.

4 Company Update

EXECUTIVE LEADERSHIP TEAM

5Company Update

VALUE-ADD redevelopment opportunities

throughout portfolio

GATEWAY MARKETS with high barriers to entry and

attractive demographics

FIRST & LAST MILE functional assets in

infill locations

BUSINESS PARK FOCUS multi-tenant buildings in

multi-building parks

DISCIPLINED INVESTMENTS adherence to below

replacement cost investing

We have built our finely tuned portfolio over several decades with disciplined long-term investing strategies. We have achieved density and scale in each of our markets which allows our dedicated and experienced in-house teams to lease and manage effectively 100% of our portfolio. Our long track record of market outperformance is the direct result of our best-in-class property management coupled with disciplined investing.

DISCIPLINED INVESTMENT STRATEGY

EFFICIENT PLATFORM operational scale in each

of our markets

6 Company Update

AVERAGE ANNUAL TOTAL SHAREHOLDER RETURNConsistent market outperformance as a result of disciplined investing, best in class operations, and prudent balance sheet management.

12.5% AVERAGE RETURN

OVER THE PAST 20 YEARS

Source: FactSet December 31, 2018

OUTPERFORMINGS&P 500 BY

690 BASIS POINTSOVER THE PAST

20 YEARS

OUTPERFORMING NAREIT BY

25O BASIS POINTSOVER THE PAST

20 YEARS

7Company Update

OPTIMAL PRODUCT IN PRIME MARKETS

NORTHERN VIRGINIANORTHERN CALIFORNIA±5.0 million square feet of warehouse, flex and office space in Northern Virginia

±2.9 million square feet of warehouse and flex space in the Greater Dallas Area

±7.2 million square feet of warehouse, flex and office space in the Greater Bay Area

SEATTLE±1.4 million square feet of warehouse, flex and office space in the Greater Seattle Area

FLORIDA±3.9 million square feet of warehouse and flex space in Doral, Boca Raton and Wellington

DALLAS

SOUTHERN CALIFORNIA±3.9 million square feet of warehouse, flex and office space in Signal Hill, Lake Forest and San Diego

MARYLAND±1.3 million sqare feet of office and warehouse space in Maryland

AUSTIN±2.0 million square feet of warehouse and flex space in the Greater Austin Area

Excludes 1.3 million RSF of assets held for sale as of September 30, 20191

1

8 Company Update

Customer centric focus with a proactive approach; 100% of leasing and property management done in-house

CUSTOMER FOCUS

PEOPLE FOCUSEDOPERATIONS MODEL

Operations management team averages 14 years of employment at PSB

EXPERIENCED MANAGEMENT TEAM

Decentralized operating platform staffed by seasoned local market experts, empowered to make maket-based leasing decisions

DECENTRALIZED PLATFORM

Sophisticated, data driven leasing and property management practices, including a disciplined approach to capital outlay (i.e. transaction costs)

INDUSTRY LEADING PRACTICES

9Company Update

Stable and diversified customer base with limited exposure to any single industry.

DIVERSE CUSTOMER BASE

PSB prides itself on being the premier landlord to small-business America and serving a wide cus-tomer base throughout the country

4,800+CUSTOMERS NATIONWIDE

As of September 30, 2019; Excludes 1.3 million RSF of assets held for sale as of September 30, 2019

10 Company Update

HIGHLIGHTS- No pending debt maturities

- $250 million corporate credit facility capacity, with additional

- Low leverage / Strong ratiosDebt & preferred to EBITDA 3.5x

- Investment Grade Ratings

Fixed charge coverage ratio 5.6x

S & P

Moody’s

A- (Corporate)

Baa2 (Preferred Equity)BBB (Preferred Equity)

$150 million accordion

1

As of September 30, 20192

FORTRESS BALANCE SHEETLow leverage and absence of large debt maturities provides the ability to seize accretive growth opportunities and recession resiliency.

$7.3 BILLION TOTAL MARKET CAP as of September 30, 2019

Common Equity (86.0%)

Preferred Equity (13.0%)

Unsecured Debt (1.0%)

of 4.875%, bringing the blended preferred equity coupon rate down to 5.1%- Recently issued $325 million of preferred equity (Series Z) with a coupon rate

2

Pro forma based on the pending redemption of series U and series V preferred shares1

11Company Update

OCCUPANCY & RENT TRENDSOur dedicated in-house leasing teams consistently drive strong occupancy and rent growth.

MARKET BASED LEASING

DECISIONS DRIVES GROWTH

5.0%AVERAGE ANNUAL

RENT GROWTHBETWEEN 2015 - 2018

94.2% AVG OCCUPANCY

SINCE 2015

Excludes 1.3 million RSF of assets held for sale as of September 30, 20191

1

Reflects the nine months ended September 30, 20192

2

12 Company Update

Our Same Park REVPAF consistently outperforms our industrial peer group as a result of our dedicated in-house leasing teams consistently driving strong occupancy and rent growth.

14.0%REVPAF SAMEPARK GROWTH

SINCE 2014 2.6% AVG ANNUAL SAME

PARK REVPAF GROWTH SINCE 2014

OVER 4YEARS

OF CONSECUTIVESAME PARK

REVPAF GROWTH

1 YTD rental income has been annualized; Reflects the nine months ended September 30, 2019

REVENUE PER AVAILABLE FOOT (REVPAF)

Note: Same Park REVPAF represents rental income earned per total Same Park weighted average available square foot reported during the period presented

1

13Company Update

NET OPERATING INCOME TRENDStrong fundamentals and adherence to disciplined property management have promoted a long pattern of Same Park net operating income (“NOI”) growth.

22.1%NOI GROWTH

SINCE 2014 3.1% AVG ANNUAL SAME PARK NOI GROWTH

SINCE 2012

7 YEARS OF CONSECUTIVE

NOI GROWTH

Note: Amounts shown in the table above reflect the reported Same Park NOI for each respective period

Disclosure: NOI is a measure not defined in accordance with U.S. generally accepted accounting principles (“GAAP”). Refer to our quarterly Supplemental Information Package for the definition and reconciliation of this measure to its closest analogous GAAP measure.

14 Company Update

FOCUSED APPROACH ON

GENERIC, REUSABLE IMPROVEMENTS

DYNAMIC PORTFOLIO

CHANGING WITH DECREASING

OFFICE EXPOSURE

CAPITAL EXPENDITURESSame Park recurring capital expenditures have generally trended down-ward as the result of effective transaction cost containment strategies (i.e. make-ready and leasing costs).

Disclosure: NOI is a measure not defined in accordance with U.S. generally accepted accounting principles (“GAAP”). Refer to our quarterly Supplemental Information Package for the definition and reconciliation of this measure to its closest analogous GAAP measure.

DEDICATED IN-HOUSE TEAMS

MINIMIZE OURTRANSACTION

COSTS

% of

Net O

pera

ting I

ncom

e

Note: Amounts shown in the table above reflect the reported Same Park data for each respective period

15Company Update

KEY PERFORMANCE METRICSFocus on driving NOI growth and containing capital expenditures has led to expanding Core Funds From Operations (“Core FFO”) and Funds Available for Distribution (“FAD”).

75.5%FAD GROWTH

SINCE 2012 7 YEARS OF CONSECUTIVE CORE FFO AND FAD

GROWTH

50.1% CORE FFO GROWTHSINCE 2012

Disclosure: Core FFO and FAD are non-GAAP measures. Refer to our quarterly Supplemental Information Package for the definitions and reconciliations of these measures to their closest analogous GAAP measures.

16 Company Update

RECENT ACQUISITIONSWALNUT BUSINESS PARKSIGNAL HILL, CALIFORNIA

HATHAWAY I&II INDUSTRIAL PARKSANTA FE SPRINGS, CALIFORNIA

Acquisition Date: September 2019- 543,000 SF industrial park- 10 industrial buildings- Average tenant size: 33,000 SF

- Prime last mile location- Located adjacent to I-605 and I-5 freeways- Mid-counties industrial vacancy rate is less than 1.5%

Acquisition Date: April 2019- 74,353 SF business park- 8 multi-tenant buildings- Average tenant size: 2,065 SF

- Located just north of the 405 freeway, near the 91, 110 and 710 freeways- Increasing PSB’s submarket share to 56%- Acquired at 30% discount to replacement cost

17Company Update

DEVELOPMENT UPDATE

- Next phase of redevelopment at The Mile- Final development plan approval obtained July 2019 for an estimated 411 multifamily units- Construction expected to commence in mid-2020- Effectively no in-place NOI disruption

BRENTFORD AT THE MILE

- Contiguous 45 acre master planned redevelopment site- Currently occupied with 750,000 sq. ft. of class B office- Zoning approved for over 3 million sq. ft. of mixed-used redevelopment (primarily multifamily)- Up to 3,100 multifamily units, 200,000 sq. ft. of class A office, 300,000 sq. ft. of storage, and over 10 acres of open space to be completed in nine phases- Property is Metro accessible and located in the top-rated McLean School District

THE MILE

- Opened June 2017- 395 total units at an average unit size of 867 sq. ft.- 95% occupied- Total project costs (including fair value of land) of $115.4 million

HIGHGATE AT THE MILE

TYSONS, VIRGINIA

18 Company Update

SOCIAL RESPONSIBILITYDIVERSITY IN OUR WORKPLACE OF 157 EMPLOYEES

President & CEO is a woman and diverse

70% Independent

30% Women

Affirmative Action Plan Employer

30% Under the age of 60

GENDER & RACE

DIVERSITY & INDEPENDENCE OF BOARD OF DIRECTORS

50% OF EMPLOYEES ARE WOMEN

44% OF WOMEN IN A SUPERVISORY ROLE

44% OF EMPLOYEES ARE NON-WHITE, WITH 33% IN A

SUPERVISORY ROLE

ENERGY EFFICIENCY & ENVIRONMENTAL INITIATIVES

19Company Update

ENVIRONMENTALLYRESPONSIBLE

701 WESTERN AVENUEGLENDALE, CA 91201T 818.244.8080psbusinessparks.com

CONTACT: JEFF HEDGES, CFO818.244.8080 EXT. 1649

Additional information on our Company, including portfolio information, SEC filings and other investor resources can be found on our corporate website

BUILDING OUR LEAD