Triad Apartment Market 2017 Triad Apartment Market Overview and Outlook

Historical Transaction Volume Triad Transaction Trends Historical Transaction Volume Sale Price/SF $576.4 M $592.7 M $340.8 M *Includes sales $1 million and greater Sources: Marcus & Millichap Research Services, CoStar

2016 Triad Sale Data *Includes sales $1 million and greater Sources: Marcus & Millichap Research Services, MPF Research, CoStar

Completions (000s of Units) Triad Apartment Construction Trends Completions (000s of Units) * Forecast Sources: Marcus & Millichap Research Services, MPF Research

Apartment Vacancy Rate Trends Average Vacancy Rate * Forecast Sources: Marcus & Millichap Research Services, MPF Research

North Carolina Apartment Vacancy Trends by Class Average Vacancy Rate Trailing 12-month average North Carolina includes Greensboro/Winston-Salem, Raleigh-Durham-Chapel Hill, and Charlotte Sources: Marcus & Millichap Research Services, MPF Research

Average Effective Rent Growth Trends +6.1% +6.0% +5.2% +3.8% Y-O-Y Percent Change * Forecast Sources: Marcus & Millichap Research Services, MPF Research

Average Price per Unit (000s) Apartment Pricing Trends +38% +6% +58% Average Price per Unit (000s) +10% Includes sales $1 million and greater Sources: Marcus & Millichap Research Services, CoStar Group, Inc., Real Capital Analytics

Commercial Real Estate Avg. Yield vs. 10-Yr. Treasury – Spread Indicates “Buy” Window Cap Rate Long-Term Avg. 440 bps 430 bps 480 bps 480 bps Average Rate 200 bps 580 bps 380 bps 10-Yr Treasury Long-Term Avg. Includes all apartment, office, retail and industrial sales $1 million and greater Sources: Marcus & Millichap Research Services, CoStar Group, Inc., Real Capital Analytics

Triad Apartment Market 2017 Triad Apartment Market Overview and Outlook