1Q 2019 JOB GROWTH IMPACT ON CRE

U.S. Added 541K Jobs in the First Quarter

•U.S. economy sustains job formations, but pace slowing due to tight labor market

•Historically low unemployment restrains hiring – Employment growth to be on par with 2017 levels

•Challenge of skills mismatch – 6.2M Jobless vs. 7.1M Job Openings

Job Growth Boosts Nearly Every CRE Sector

•Jobs a primary driver of real estate – Drives spending and household formation

•Tight labor market supports Office space demand

•Job creation and rising wages bolster Apartment, Retail, Hospitality, Industrial and Self-Storage

Employment Outlook Steady for Short- to Mid-Term

•Unemployment likely to remain tight, slowly pushing wage growth to mid-3% range

•Secondary and tertiary markets to see outsized growth as companies bring jobs to employees