cCARE | Offering Memorandum

San Diego Q4 2018

Direct Net Absorption (sf) Under Construction (sf)

19k

148k

221k $3.17

98k

$3.15 M A R K E T

Average Asking Rent

SAN DIEGO MEDICAL OFFICE SNAPSHOT 4Q 2018

*Rental rates reflect full service (FS) asking $psf/month.

SAN DIEGO MEDICAL OFFICE

Economic Indicators

Direct Net Absorption/Direct Asking Rent 4-QTR TRAILING AVERAGE

Q4 17

Q4 18 12-Month Forecast

San Diego Employment San Diego Unemployment

1.53M 1.57M 3.3% 3.2% 4.1% 3.9%

80

$3.20

U.S. Unemployment

60

December 2017/2018 used to represent Q4 for San Diego.

$3.00

0 Thousands of SF 20 40

Market Indicators

Q4 17

Q4 18 12-Month Forecast

$2.80

Vacancy

7.3% 6.4%

Direct Net Absorption (sf) Under Construction (sf)

19k

148k

$2.60

-20

221k $3.17

98k

2011 2012 2013 2014 2015 2016 2017 2018

Average Asking Rent

$3.15

*Rental rates reflect full service (FS) asking $psf/month.

Net Absorption SF

Asking Rent, $ PSF

Direct Net Absorption/Direct Asking Rent 4-QTR TRAILING AVERAGE

Overall Vacancy

12%

Historical Quarterly Average = 9.5%

80

$3.20

10%

60

$3.00

0 Thousands of SF 20 40

8%

$2.80

6%

$2.60

-20

4%

2011 2012 2013 2014 2015 2016 2017 2018

2012 2013 2014 2015 2016 2017 2018

Net Absorption SF

Asking Rent, $ PSF

Overall Vacancy

37

OFFERING MEMORANDUM

12%

Historical Quarterly Average = 9.5%