Midyear Update for Hotel, Apartment, Office

CRE Space Demand Healthy

•Consistent job growth, low unemployment and solid consumer spending bolstering real estate demand

•Performance strong with record or near-record low vacancy rates for all property types

•Trade War and interest rate volatility pose risks, but so far they have not diluted space demand

Full Employment Unlocking Apartment Demand

•Record low unemployment fuels household formation, sustains need for housing

Apartments outperform in 2Q – Strongest quarterly absorption on record (since 1993)

Hotel and Office Sectors Benefitting from Economic Lift

•Record corporate profit levels boost business travel – Hotels sustain record performance; growth flattening

Office supply and demand in balance at macro level, but significant opportunity at local level