Alony Hetz

Investor Presentation • Mar 23, 2022

The U.S. Office Landscape

Featuring Washington, DC, Boston and Austin

Ben Breslau | Chief Research Officer, JLL

23rd March 2022

© 2022 Jones Lang LaSalle IP, Inc. All rights reserved.

U.S. office market trends

Hybrid work

Migration

Most companies targeting ~3 days per week in the office

Population shifting from dense gateway cities to the Sun Belt

Demand recovering

Leasing volume trending toward pre-pandemic levels, fueled by innovation sectors

Flight to quality

Tenants seeking topquality space to draw employees back to the office

Portfolio market key characteristics

Drivers: "Meds & Eds," Life Sciences, Tech Metro Population: 4.9 Million Office Market Size: 168.4M SF Metro, 66.8M SF CBD CBD Vacancy: 13.7% overall; 11.8% Class A/Trophy

Washington, DC

Drivers: Government, Defense Contractors, Legal, Associations Metro Population: 6.4 Million Market Size: 334.9M SF Metro, 125.4 SF CBD CBD Vacancy: 18.5% overall; 17.3% Class A/Trophy

Austin

Drivers: Technology, Corporate relocations Metro Population: 2.3 Million Market Size: 61.5M SF Metro, 12.4M SF CBD CBD Vacancy: 19.7% overall; 20.8% Class A/Trophy

Office re-entry patterns and forecast

Metro office occupancy comparison

City	% of pre-pandemic occupancy
Austin	58%
Houston	52%
Dallas	51%
Los Angeles	38%
Boston	37%
NY Tri-State	36%
DC	36%
Chicago	35%
San Fran	29%

Data current as of March 21, 2022

Hybrid work evolution

Impact of hybrid on the office ecosystem

"The future of work is flexibility" – Google CEO Sundar Pichai

Demand continues to rebound

Flight to quality creating bifurcation in office performance

Best-in-class office product is capturing outsized demand, which is widening the performance disparity between new/amenitized and second-generation/undifferentiated assets

Personalized, responsible, and experiential attributes driving demand for buildings and spaces

Washington, DC is a low-volatility market given the stabilizing force of the Federal Government

Share of DC office tenant base Stable employment base Federal return-to-office

"It's time for Americans to get back to work and fill our great downtowns again. People working from home can feel safe to return to the office. We're doing that here in the federal government. The vast majority of federal workers will once again work in person."

President Biden, State of the Union, March 1, 2022

Tech tenants lead office leasing activity

Q1 2020-present leasing activity (s.f.)

Boston's preeminent universities, hospitals and research institutions drives tech and life sciences demand

Austin is the leading destination for innovation-focused corporate expansion activity and HQ relocations

Notable expansions and corporate HQ relocations Total corporate relocations and expansions

Innovation and growth markets likely to outperform, with emerging markets presenting investment opportunities

Boston and Austin's rent growth and sales pricing outpacing most peers

26.8%

-4.4% -0.7% 0.6% 1.7% 5.6% 5.9% 7.3% 7.6% 8.6% 8.6% 11.9% 13.6% -10% -5% 0% 5% 10% 15% 20% 25% 30% Houston San Francisco Washington, DC Chicago Seattle New York Atlanta United States Los Angeles Austin Boston Dallas Miami

Rent growth Sales pricing

Trailing 3-year CBD Class A asking rent growth (%)

Office investment sales volume rebounding to near prepandemic levels

Office market outlook: favorable for Trophy product

	Austin	Boston	Washington, DC
Opportunity	Sustained tech demand	Diverse economy with	Stability from creditworthy
	and corporate migration	strong innovation sector	tenant base
Risk	Rapid development cycle	Bifurcated office market	Government remote work and
	with current scale	and demand concentration	cyclical high in vacancy

Thank you

© 2022 Jones Lang LaSalle IP, Inc. All rights reserved. The information contained in this document is proprietary to Jones Lang LaSalle and shall be used solely for the purposes of evaluating this proposal. All such documentation and information remains the property of Jones Lang LaSalle and shall be kept confidential. Reproduction of any part of this document is authorized only to the extent necessary for its evaluation. It is not to be shown to any third party without the prior written authorization of Jones Lang LaSalle. All information contained herein is from sources deemed reliable; however, no representation or warranty is made as to the accuracy thereof.