INVESTORSURVEY RESULTS

2015 Seattle State of the Market

Rank

Belltown / Denny Regrade

Pioneer Square / Waterfront

South Seattle

I-90 Corridor

How would you rank the following submarkets in terms of potential in 2015?

Office

Industrial

Multi-family

Retail

34%

21%

18%

7%

Which product type would be your first choice to purchase?

Do you anticipate purchasing more property in the Northwest in 2015 than in 2014?

YES82%NO18%

1

2

3

4

On a portfolio basis, do you expect to be a net buyer or a net seller in 2015?

42% said Increase by 0 – 50 bp

8% said Increase by 50 -100 bp

1% said Increase by 100 – 150 bp

47% said Decrease by 0 – 50 bp

2% said Decrease by 50 – 100 bp

How much will cap rates increase/decrease?

79%NETBUYER

21%NET SELLER

Will cap rates be higher in 2015 than in 2014?

said Higher48%

said Lower52%

What is your prediction for long term debt rates over the next 12 months?

43% said interest rates will increase

48% said interest rates will remain flat

9% said interest rates will decrease

Where do you believe Seattle area values are compared to other major markets?

Are you concerned with the amount of new development?

Yes, it’s concerning 65%No, not worried 35%

58% 20%21%at peak over-pricedrelative

bargain

NOT UNTIL 2015 OVERALL, OUR CLIENTS ARE FEELING CAUTIOUSLY OPTIMISTIC ABOUT THE ECONOMIC OUTLOOK FOR 2015.”

Lori Hill - Managing Director JLL

In what quarter are you most likely to make your first acquisition?

2015

40%

31%

21%

2%

NOT UNTIL 2016

6%

Q1

Q2

Q3

Q4

JAN FEB MAR

APR MAY JUNE

JULY AUG SEPT

OCT NOV DEC

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