VACANCY RENTAL RATE. *Projected $1.42 $1.40 $1.38 $1.36 $1.34 $1.32 $1.30 $1.28 $1.26 $1.24 $1.22. Per Square Foot $1.20

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1 Research & Forecast Report LAS VEGAS RETAIL Q Dragging Anchor(s) > > Net absorption continued to be positive in the third quarter of 2017 > > Vacancy increased slightly to 8.3 percent > > Asking rental rates decreased to $1.34 per square foot on a triple-net basis As retail job growth has slowed in 2017 in Southern Nevada, retail occupancy growth has slowed with it. Net absorption was positive for a second straight quarter after a negative dip in the first quarter of 2017, but the addition of newly completed vacant space and the closure of three more anchor retailers increased retail vacancy to 8.3 percent from last quarter s 8.2 percent. The asking rental rate for retail space in the third quarter of 2017 was $1.34 per square foot (psf) on a triple-net (NNN) basis, lower than one quarter ago, but higher than in the third quarter of According to the Nevada Department of Employment, Training and Rehabilitation, Southern Nevada s retail job market suffered in July 2017 (the latest month of data available) compared with July 2016, losing approximately 2,700 jobs in the past twelve months. The job Historical Vacancy Rates and Asking Lease Rates Economic Indicators RETAIL Employment Market Indicators Relative to prior period Q Q4 2017* VACANCY NET ABSORPTION CONSTRUCTION RENTAL RATE *Projected -0.8% Summary Statistics RETAIL Taxable Sales +2.8 RETAIL /Job +0.8% Q Las Vegas Market Q3-16 Q2-17 Q % 9.4% $1.42 $1.40 Vacancy Rate 8.6% 8.2% 8.3% 9.2% 9.0% $1.38 $1.36 Asking Rent (P, NNN) $1.32 $1.36 $ % 8.6% $1.34 $1.32 Net Absorption () 408, ,024 68, % 8.2% $1.30 $1.28 New Completions () 71, , % $ % 7.6% $1.24 $1.22 Overall Asking Rents 7.4% 4 Q Q Q Q Q Q Q Q 2017 $1.20 Per Square Foot Power Center $1.51 $1.63 $1.52 Vacancy Asking Rental Rate Community Center $1.27 $1.29 $1.31 The pace of anchor space closures has increased in 2017 compared to 2016, and these large additions to the Valley s vacant inventory are acting as a headwind to the retail market s recovery. Neighborhood Center $1.47 $1.43 $1.42 Strip Center $1.18 $1.25 $1.23

2 losses experienced during the Great Recession were reversed from 2012 to 2015 and expanded during That 2017 is showing job losses while the economy is apparently expanding is notable and disturbing. Unemployment in the Las Vegas-Paradise MSA stood at 5.1 percent as of July 2017, down from 6.7 percent in July From July 2016 to July 2017, total employment in Southern Nevada increased by 34,600 jobs, a 3.9 percent increase. Historical Net Absorption vs. Completions 450, , , , , ,000 The Nevada Department of Taxation reports that Clark County s taxable retail sales for the past twelve months (July 2016 to June 2017, the most recent month of data available) totaled $29.4 billion, up from $28.3 billion in the previous twelve months. In the past twelve months taxable sales were $4.7 billion in the automotive sector, $10.6 billion in food service and $13.8 billion in other retail (excluding gas stations). 150, ,000 50, ,000 4 Q Q Q Q Q Q Q Q 2017 Net Absorption Completions The highest year-over-year growth in taxable retail sales in June 2017 were in automotive (9.8 percent), home and garden stores (7.3 percent growth) and gasoline stations (7.2 percent growth). Year-over-year taxable sales decreased in sporting goods and hobby stores (negative 7.8 percent), electronics and appliance stores (negative 10 percent growth), clothing stores (negative 5 percent growth), furniture stores (negative 1.5 percent growth) and food and beverage stores (negative 3.2 percent). Non-store retailers, by comparison, posted 16.7 percent year-over-year growth this, in a nutshell, is the problem. Occupancy vs. Retail Employment 85,000 84,000 83,000 82,000 81, % 91.5% 91.0% 90.5% 90.0% A 26,220 square foot strip center was completed in the Northwest 80, % submarket this quarter, entering the market approximately 50 percent pre-leased. The market currently has 392,787 square feet of retail product under construction, with approximately 320,000 square feet 79,000 4 Q Q Q Q Q Q Q Q 2017 Retail Jobs Occupancy Rate 89.0% scheduled for completion by the end of Another 1.9 million square feet of retail could potentially be completed in 2018, although it is likely that no more than half of it will be. Net absorption was 68,470 square feet in the third quarter of 2017, approximately half that of the previous quarter. This brought year-todate net absorption up to 178,669 square feet. This was significantly lower than in the third quarter of 2016, when year-to-date net absorption was 665,856 square feet. Third quarter 2017 net absorption was negative in power centers (negative 376 square feet) and positive in strip centers (46,447 square feet), neighborhood centers (13,091 square feet) and community centers (9,308 square feet). 2 Las Vegas Research & Forecast Report Q Retail Colliers International

3 Net absorption was positive in three of the Valley s eight submarkets, including Southwest (126,422 square feet), Henderson (15,819 square feet) and West Central (7,953 square feet). Net absorption was negative in University East (negative 37,935 square feet), Northwest (negative 28,336 square feet), Northeast (negative 8,182 square feet), Downtown (negative 5,963 square feet) and North Las Vegas (negative 1,308 square feet). This illustrates, in a snapshot, the problems currently faced by the retail market. Net absorption is positive in the big picture, but very often negative in the details, as four of the Valley s eight submarkets have posted negative net absorption for the year-to-date. Gross absorption of retail product totaled 502,707 square feet in the third quarter of 2017, bringing year-to-date net absorption up to 1.81 million square feet. Continued weakness in the large anchor segment of the market is stunting overall growth in retail occupancy. Three anchor spaces totaling 125,980 square feet were vacated in the third quarter of For the year as a whole, a total of 345,528 square feet of anchor space was vacated. Compare this to 2016, when a total of 128,396 square feet of anchor space was brought to market and you can see the scope of challenge ahead of Southern Nevada and many other communities. If all of this anchor space had remained occupied, the past seven quarters would have produced over 1.5 million square feet of net absorption and vacancy would be in the neighborhood of 7.5 percent. Adding to these woes is the recent declaration of bankruptcy by Toys R Us and Goodwill of Southern Nevada, and the continued closure of more K-Mart and Sears locations. Fortunately, a few new anchors are counterbalancing these closures, including Burlington Coat, La Bonita Supermarket, Ross Dress for Less and the PGA Tour Superstore. Retail vacancy in Southern Nevada was 8.3 percent in the third quarter of 2017, slightly higher than the previous quarter s 8.2 percent vacancy and 0.3 points lower than one year ago. Occupancy in Southern Nevada s retail market has been expanding since 2012, although growth slowed in 2014 and dipped for one quarter in 2016 into negative territory. This gives us two periods of strong retail growth, from 2012 to 2013, and from 2015 to present. In 2017, the negative net absorption in the first quarter was reversed by strong second and third quarters, suggesting that the current expansion is not over. That being said, year-to-date negative net absorption in half of the Valley s submarkets paints a more complex picture of retail demand. Retail employment is not growing at Retail Development Schedule Project Type Submarket Size () Pre-Leasing Q ,000 76% Mountains Edge Marketplace Community Center Southwest 133,000 54% St Rose Coronado Center Strip Retail Henderson 18,000 8% Walmart (Blue Diamond) Neighborhood Center Southwest 169,000 BTS Q ,000 66% DCs Plaza Neighborhood Center Northwest 73,000 66% ,852,000 46% 215 Curve Community Center Southwest 207,000 76% Cadence Village Center Neighborhood Center Henderson 153,000 85% Centennial Hills Center Strip Retail Northwest 31,000 0% Craig & Camino Al Norte Strip Retail North Las Vegas 123,000 0% Kaktus Life Strip Retail Southwest 29,000 0% Maryland & Silverado Sprouts Neighborhood Center University East 51,000 72% Quail Bonita Strip Retail Henderson 42,000 21% Rainbow & Arby Sprouts Neighborhood Center Southwest 65,000 53% Rainbow Blue Diamond Strip Retail Southwest 45,000 0% Sahara Crossing Strip Retail Downtown 41,000 0% St Rose Square Henderson Neighborhood Center 466,000 45% Shanghai Plaza Strip Retail West Central 80,000 0% Shoppes on the Parkway Henderson Strip Retail 58,000 0% Silverado Promenade Neighborhood Center University East 130, % Sunset & Durango Neighborhood Center Southwest 152,000 67% The Gateway Henderson Strip Retail 35,000 57% Union Village Henderson Strip Retail 125,000 0% University Gateway Strip Retail University East 19,000 80% 3 Las Vegas Research & Forecast Report Q Retail Colliers International

4 Single-Tenant Retail YTD No. Sales Square Footage Sold 719, , , , ,000 Sales Volume $139.8 MM $187.5 MM $306.2 MM $176.6 MM $120.7 MM Average Price/ $ $ $ $ $ Average Sale Size () 15,300 10,500 14,900 8,400 7,500 Cap Rate 7.2% 7.2% 7.0% 6.6% Shopping Center Retail YTD No. Sales Square Footage Sold 3,192,000 4,025,000 3,195,000 2,528,000 3,725,000 Sales Volume $359.2 MM $504.5 MM $588.1 MM $419.7 MM $531.7 MM Average Price/ $ $ $ $ $ Average Sale Size () 66,000 67,000 55,000 62, ,000 Cap Rate 8.9% 7.7% 6.7% 7.5% quickly as one might expect given the rate of taxable sales growth, and this lack of employment growth is probably being mirrored in the low growth of occupied retail real estate. Among submarkets, the Valley s highest vacancy this quarter was 13.0 percent in University East, while the lowest vacancy rate was 4.8 percent in the Southwest submarket, a sign of the demographic migration of the Valley s middle class from the east side of the Valley, where they settled during the 1970 s and 1980 s, to the west side of the Valley. Vacancy decreased this quarter in the Southwest and West Central submarkets, and increased in the Downtown, Northeast, Northwest and University East submarkets. Vacancy was static in Henderson and North Las Vegas. The average asking rental rate for retail space in Southern Nevada was $1.34 psf NNN in the third quarter of 2017, lower than in the previous quarter but higher than one year ago. Five submarkets saw asking rates increase on a quarter-over-quarter basis this quarter; North Las Vegas ($0.06 psf), Southwest ($0.05 psf), Henderson ($0.01 psf), Northeast ($0.01 psf) and Northwest ($0.01 psf). Asking rates decreased in University East ($0.10 psf), Downtown ($0.03 psf) and West Central ($0.01 psf). Asking rents decreased in power centers ($0.11 psf) neighborhood centers ($0.02) and strip centers ($0.02 psf), and increased in community centers ($0.03). Single-tenant retail investment sales volume so far in 2017 was $120.7 million in 43 sales totaling 324,000 square feet. This rendered an average price per square foot of $ Unless the fourth quarter of this year comes on like gangbusters, 2017 will prove to have been a much weaker year for single-tenant investment sales than the previous four years will still present challenges for the Valley s retail market. 4 Las Vegas Research & Forecast Report Q Retail Colliers International

5 Shopping center investment sales volume in the first three quarters of 2017 was $531.7 million in 30 sales totaling 3.7 million square feet. This rendered an average price per square foot of $142.76, lower than in the two previous years. Notably, the average size of a shopping center sold in 2017 is approximately twice as large as those sold in the previous four years, one likely reason that the average price per square foot is lower. The average cap rate so far in 2017 was 7.5 percent, higher than in The pace of anchor space closures has increased in 2017 compared to 2016, and these large additions to the Valley s vacant inventory are acting as a headwind to the retail market s recovery. In fact, they appear to be keeping the retail market s future expansion at bay. This is significant, because it is occuring during overall economic growth. Anchor closures during a recession is par for the course, but during an expansion it points to a shift in the way people do business. Fortunately for Southern Nevada, a couple new anchor retailers are entering the market in the fourth quarter of 2017, and this will boost the year s otherwise mediocre net absorption number. That being said, 2018 will still present challenges for the Valley s retail market. Retail employment is not increasing at the present time and online retail sales are continuing to impact brick & mortar retail. We think retail occupancy will increase through 2018, but probably not at the rate we would prefer. Households (2017) Avg. HH Income (2017) Occupied Retail Space (2016 Avg.) Occupied Retail Space (2017 Avg.) Downtown 38,000 $41,000 2,010,000 2,025,000 Henderson 112,800 $86,000 9,537,000 9,575,000 North Las Vegas 75,200 $67,000 5,625,000 5,789,000 Northeast 82,300 $55,000 3,122,000 3,104,000 Northwest 181,600 $85,000 12,741,000 12,949,000 Southwest 99,000 $81,000 7,587,000 7,637,000 University East 108,100 $61,000 7,889,000 8,004,000 West Central 56,300 $53,000 6,303,000 6,178,000 Source of Demographic Data: Claritas 5 Las Vegas Research & Forecast Report Q Retail Colliers International

6 Significant Retail Sale Activity 215 NORTH LAS VEGAS Montecito Marketplace 190,000 - $63,500,000 $334.00/ NORTHWEST 95 August 2017 Multi-Tenant/Smiths/TJ Maxx 15 Flamingo Grand Parkway 65,000 - $16,650,000 WEST CENTRAL DOWN TOWN NORTHEAST LAS VEGAS $257.00/ August 2017 Multi-Tenant/Sprint Store Sunrise Mountain Plaza 144,000 - $13,500, $94.00/ July 2017 UNIVERSITY AIRPORT Multi-Tenant/Big K-Mart Renaissance Center East ,000 - $12,400,000 $85.00/ SOUTHWEST HENDERSON September 2017 Multi-Tenant/Savers RESORT CORRIDOR Boca Park Marketplace 14,000 - $7,800,000 $541.00/ June 2017 Single Tenant/A Children s Dentist Lease Activity Property Name Tenant Lease Date Lease Term Size Lease Rate Type Warm Springs Marketplace RBNV 1 Inc Sep months 3,300 $1.83 NNN Community Center Pebble Marketplace Go Wireless Jul months 2,100 $2.51 NNN Neighborhood Center Rancho Pines Business Park Rancho Gold & Jewelry Aug months 2,000 $1.34 NNN Strip Center Lake Mead Plaza My Peak Wireless Sep months 2,000 $1.66 NNN Neighborhood Center Galleria Pavilion Sport Clips Jul months 1,200 $2.68 NNN Strip Center 6 Las Vegas Research & Forecast Report Q Retail Colliers International

7 Market Comparisons - Las Vegas Retail Market TYPE TOTAL INVENTORY DIRECT VACANT DIRECT VACANCY RATE SUBLEASE VACANT TOTAL VACANT VACANCY RATE CURRENT QUARTER VACANCY RATE PRIOR QUARTER NET ABSORPTION CURRENT QTR NET ABSORPTION YTD COMPLETIONS CURRENT QTR COMPLETIONS YTD UNDER CONSTRUCTION PLANNED CONSTRUCTION WEIGHTED AVG ASKING RENTAL RATE DOWNTOWN PC - - n/a - - n/a n/a $- CC 731,186 84, % - 84, % 11.5% - (6,135) $1.28 NC 588, , % - 109, % 18.0% (3,360) (43,521) $0.90 SC 989,530 96, % 1,960 98, % 9.6% (2,603) (19,974) - 19,800-40,500 $1.41 Total 2,308, , % - 289, % 12.4% (5,963) (69,630) - 19,800-40,500 $1.30 HENDERSON PC 2,896,215 67, % - 67, % 2.4% 2,000 31, $1.91 CC 2,724, , % - 163, % 6.4% 9,345 24,327-33, $1.56 NC 2,930, , % 118, , % 15.2% 1,437 21, ,422 $1.40 SC 1,929, , % - 320, % 15.8% 3,037 (34,420) 21,000 21,000 18, ,860 $1.20 Total 10,480, , % 118, , % 9.5% 15,819 43,265 21,000 54,789 18, ,282 $1.40 NORTH LAS VEGAS PC 774,065 31, % - 31, % 4.1% $2.25 CC 2,150, , % - 130, % 6.1% 1,428 27, $1.56 NC 2,025, , % 7, , % 6.1% (7,806) 25, $1.57 SC 1,290, , % - 143, % 11.5% 5,070 31, ,718 $1.42 Total 6,240, , % 7, , % 7.0% (1,308) 84, ,718 $1.57 NORTHEAST PC - - n/a - - n/a n/a $- CC 1,295,615 74, % 18,614 93, % 7.5% 1,547 (6,904) $1.59 NC 1,307,891 89, % 62, , % 11.4% (3,411) (7,491) $1.38 SC 768, , % - 113, % 14.0% (6,318) (5,545) $0.87 Total 3,372, , % 80, , % 10.5% (8,182) (19,940) $1.23 NORTHWEST PC 3,171, ,572 n/a - 273, % 7.0% (52,578) (37,544) $1.57 CC 4,800, , % 75, , % 4.3% (5,414) (10,761) $1.66 NC 3,419, , % 35, , % 9.3% 16,404 23, ,550 - $1.40 SC 2,476, , % - 257, % 10.0% 13,252 15,379 26,220 26,220-31,000 $1.34 Total 13,867, , % 111,067 1,048, % 7.2% (28,336) (9,465) 26,220 26,220 72,550 31,000 $1.47 SOUTHWEST PC 944,314 7, % - 7, % 5.3% 42,596 38, $1.67 CC 2,555, , % - 106, % 4.2% 70,800 71,790 72,000 72, , ,250 $1.73 NC 2,303, , % 7, , % 6.5% 6,396 15, , ,200 $2.14 SC 2,332, , % - 141, % 6.4% 6,630 73, ,958 $1.54 Total 8,136, , % 7, , % 5.6% 126, ,126 72,000 72, , ,408 $1.80 UNIVERSITY EAST PC 1,210, , % - 124, % 10.2% (1,000) (2,348) $1.16 CC 2,946, , % 28, , % 12.5% (49,313) (92,231) $0.96 NC 2,018, , % 163, , % 17.4% 10,091 (10,719) ,588 $1.35 SC 2,990, , % 1, , % 17.7% 2,287 8, ,124 $1.06 Total 9,166,263 1,191, % 192,115 1,383, % 15.0% (37,935) (97,048) ,712 $1.08 WEST CENTRAL PC 1,138,224 90, % - 90, % 8.7% 8,606 24, $1.32 CC 1,673, , % - 234, % 12.9% (19,085) 13, $1.11 NC 1,777, , % 47, , % 9.3% (6,660) (10,371) $1.13 SC 2,170, , % - 135, % 7.4% 25,092 19, ,000 $1.18 Total 6,760, , % 47, , % 9.5% 7,953 47, ,000 $1.16 MARKET TOTAL PC 10,134, , % - 594, % 5.9% (376) 55, $1.52 CC 18,878,234 1,322, % 123,205 1,445, % 7.4% 9,308 21,347 72, , , ,250 $1.31 NC 16,370,242 1,337, % 441,820 1,779, % 11.1% 13,091 14, ,550 1,016,210 $1.42 SC 14,949,066 1,727, % 3,760 1,731, % 11.6% 46,447 88,064 47,220 67,020 18, ,160 $1.23 Total 60,331,693 4,982, % 568,785 5,551, % 9.2% 68, , , , ,787 1,850,620 $1.34 QUARTERLY COMPARISON AND TOTALS Q ,331,693 4,982, % 568,785 5,551, % 9.2% 68, , , , ,787 1,850,620 $1.34 Q ,212,473 4,932, % 593,307 5,525, % 9.4% 128, , , ,007 1,770,620 $1.36 Q ,212,473 5,060, % 580,286 5,640, % 8.9% (17,825) (17,825) 53,589 53, ,550 1,183,806 $1.36 Q ,158,884 4,988, % 354,423 5,343, % 9.6% 234, ,447 65, , ,506 1,385,706 $1.35 Q ,093,033 5,157, % 639,448 5,797, % 10.2% 408, ,856 71, ,774-1,564,516 $1.32 Q ,021,964 5,495, % 618,699 6,113, % 10.2% (26,507) 257,090 23, ,705 71,069 1,492,349 $1.30 Q ,998,259 5,445, % 653,842 6,098, % 10.5% 283, ,597 80,000 80, , ,083 $1.30 PC = Power Center CC = Community Center NC = Neighborhood Center SC = Strip Center 7 Las Vegas Research & Forecast Report Q Retail Colliers International

8 396 offices in 68 countries on 6 continents United States: 153 Canada: 29 Latin America: 24 Asia Pacific: 79 EMEA: 111 $2.6 billion in annual revenue* COLLIERS INTERNATIONAL LAS VEGAS 3960 Howard Hughes Parkway Suite 150 Las Vegas, Nevada USA MARKET CONTACT: Mike Mixer Executive Managing Director Las Vegas mike.mixer@colliers.com John Stater Research & GIS Manager Las Vegas john.stater@colliers.com 2.0 billion square feet under management 15,000 professionals and staff *All statistics are for 2016 and include affiliates. About Colliers International Colliers International Group Inc. (NASDAQ and TSX: CIGI) is an industry leading global real estate services company with 15,000 skilled professionals operating in 68 countries. With an enterprising culture and significant employee ownership, Colliers professionals provide a full range of services to real estate occupiers, owners and investors worldwide. Services include strategic advice and execution for property sales, leasing and finance; global corporate solutions; property, facility and project management; workplace solutions; appraisal, valuation and tax consulting; customized research; and thought leadership consulting. Colliers professionals think differently, share great ideas and offer thoughtful and innovative advice that helps clients accelerate their success. Colliers has been ranked among the top 100 global outsourcing firms by the International Association of Outsourcing Professionals for 12 consecutive years, more than any other real estate services firm. Colliers also has been ranked the top property manager in the world by Commercial Property Executive for two years in a row. For the latest news from Colliers, visit Colliers.com or follow us on Twitter (@Colliers) and LinkedIn. Copyright 2017 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.