Economic & Commercial Real Estate Finance Outlook Presented by Barbara Byrne Denham REIS, Inc. Jamie Woodwell Mortgage Bankers Association

National Apartment Market Supply & Demand Trends Source: Reis; Top 50 Primary Apartment Markets

Top and Bottom Apartment Markets Year-Over-Year Comparisons Effective Revenue Per Unit, Percent Change 2016Q1 – 2017Q1 Source: Reis

National Office Market Supply & Demand Trends Source: Reis; Top 50 Primary Office Markets

Top and Bottom Office Markets Year-Over-Year Comparisons Effective Revenue Per Square Foot, Percent Change 2016Q1 – 2017Q1 Source: Reis

National Retail Market Supply & Demand Trends Source: Reis; Top 50 Primary Retail Markets

Top and Bottom Retail Markets Year-Over-Year Comparisons Effective Revenue Per Square Foot, Percent Change 2016Q1 – 2017Q1 Source: Reis

Summary and Conclusions GDP growth slowed in 2016 and early 2017, but this was not unexpected. Job Growth in 2017 has improved in most sectors except retail. Holding steady with our forecasts, but with a significantly wider band of uncertainty – both on the upside and the downside. Near term boost in economic activity may show up in stronger CRE fundamentals. Again, note higher uncertainty both on the upside and downside. More questions than answers in the new administration’s first 100+ days.