THE STATE OF REAL ESTATE Kitsap’s Competitive Edge

The Central Puget Sound Region (CPS) …Known around the Globe as the Kitsap County is an integral part of one of the most diverse, talented, innovative, competitive, and renowned regional economies in the world... The Central Puget Sound Region (CPS) …Known around the Globe as the Greater Seattle Metro Market

Think of “CPS” as a parent company with four distinct divisions (Snohomish, King, Pierce and Kitsap) and 2.6M employees researching, developing, producing and selling 14 leading global products and services: 1. aerospace 8. “e-commerce” 2. military defense 9. digital media-entertainment- education 3. maritime industries 10. specialty food /beverage 4. IT / communications 11. tourism 5. healthcare, bio-technologies 12. business services 6. adv. manufacturing & materials 13. corporate headquarters 7. clean technologies 14. international trade & logistics

PSIC Bremerton– Largest Greenfield MIC in Region 35 miles to I-5 45 to SeaTac Airport 55 miles to Seattle 60 miles to 3 Deep Water Ports 11 Business Parks

Kitsap’s Role in the Regional Economy Central Puget Sound Region (Snohomish, King, Pierce, Kitsap) Kitsap County 3.8 M people 2.6 M Jobs Diverse & Educated Population 14 Economic Clusters Proximity to Asia-Pacific Markets Global Center for Aerospace, IT, Heath & Maritime / Defense Innovative & Entrepreneurial Leader in Sustainability initiatives & technology 9 of 14 Economic Clusters in Kitsap 2nd Largest Industrial Complex in Pacific NW (PSNS/IMF) Leading edge sustainability education and leading-edge green businesses Above Regional Average Employment Educational attainment/Credentials Intellectual Property Development Below Regional Average Cost of Living Cost of Doing Business Stress levels KITSAP -- Arguably, the highest quality of life & most sustainable environment in the Central Puget Sound (393 square miles of a heavily forested peninsula & island surrounded by 250 miles of scenic saltwater shoreline framed by majestic mountain ranges, - all within 10 nautical miles of a 24/7 global center of commerce).

KITSAP REAL ESTATE HEADLINES: Kitsap's real estate market hot in first half of year Tad Sooter, Kitsap Sun – July 12, 2015 Explosive housing costs in Seattle are sparking interest in Kitsap County’s real estate market Robert Smith, Port Orchard Independent – September 22, 2015 Apartment vacancies still low, rents rising Tad Sooter, Minding Your Business Blog– October 20, 2015 Developer doubles down on Bremerton apartments Josh Farley, Kitsap Sun – October 6, 2015

New Silverdale hospital expected to open in 2018 Apartment projects meet demand for rental housing Tim Kelly, Kitsap Sun – April 9, 2015 Starwood Capital Group and Starwood Retail Partners Affiliate acquire Kitsap Mall in Silverdale, Washington PR Newswire, June 13, 2013 Officials break ground for The Trails at Silverwood Leslie Kelly, Central Kitsap Reporter, April 28, 2014 New Silverdale hospital expected to open in 2018 Kitsap Sun - March 25, 2015

SEATTLE REAL ESTATE HEADLINES: Seattle is nation’s fastest-growing major city CBS News– May 22, 2014 Seattle’s commercial real estate market is hotter than San Francisco and New York Marc Stiles, Puget Sound Business Journal, October 7, 2015 Seattle touts its enviable position for Chinese FDI USA - China Daily, October 9, 2015 Taiwanese firm pas sky-high price for downtown Seattle property Marc Stiles, Puget Sound Business Journal, September 3, 2015

Expedia’s move to Seattle could be a traffic reckoning $130M Seattle apartment sale: The build ‘em, sell ‘em beat goes on Marc Stiles, Puget Sound Business Journal, May 15, 2015 Commercial lease rates hitting new heights in Seattle Seattle PI, September 10, 2015 Seattle homes selling in 5 days and over asking price Sam DeBord, MarketWatch, October 12, 2015 Expedia’s move to Seattle could be a traffic reckoning Brier Dudley, Seattle Times, April 5, 2015

Heading West….Heading Home