S OUTHERN N EVADA 2015 & B EYOND February 10, 2015 Prepared by:

H OW O THERS S EE U S 2

3 SoNv has average development & redevelopment opportunities Metro Perspective: Top 10 Metros for Development/Redevelopment: Opportunities + Las Vegas MSA (Of 60 Largest Metros) 1Houston4.62Weak 2Dallas/Fort Worth4.24Declining 3San Jose4.20Average 4Seattle4.19Improving 5New Orleans4.17Strong 6New York—Brooklyn4.15 7Denver4.14 8San Francisco4.09 9Nashville Minneapolis/St. Paul Las Vegas Milwaukee Spokane Birmingham3.17 Source: Emerging Trends in Real Estate 2015 ULI-PwC Survey. Based on survey of 1,400 industry leaders.

4 SoNV lags in projected economic strength among western metros Strength of Economy Scores (Out of 5): Local Outlook: West Region WeakDecliningAverageImprovingStrong Source: Emerging Trends in Real Estate 2015 ULI-PwC Survey. Based on survey of 1,400 industry leaders.

5 SoNV CRE lags investment prospects lag other western metros, cont’d Sector Investment Prospects (Out of 5): Las Vegas & Western Region Source: Emerging Trends in Real Estate 2015 ULI-PwC Survey. Based on survey of 1,400 industry leaders.

6 Less than optimal LV real estate prospects: investment, development & homebuilding Top 10 U.S. Metros to Watch Plus Las Vegas: Overall Real Estate Prospects (5 is Highest Score ) Market (Of 75 Largest Markets)InvestmentDevelopmentHomebuilding 1Houston (1, 1, 2) Austin (2, 4, 1) San Francisco (3, 2, 5) Denver (5, 5, 4) Dallas/Fort Worth (9, 8, 3) Los Angeles (6, 6, 6) Charlotte (7, 7, 7) Seattle (4, 3, 17) Boston (8, 9, 14) Raleigh/Durham (16, 17, 9) Las Vegas (62, 64, 64) Source: Emerging Trends in Real Estate 2015 ULI-PwC Survey. Based on survey of 1,400 industry leaders.

T HE R EALITY : S OUTHERN N EVADA E CONOMY 7

8 Sources: Bureau of Economic Analysis, Bureau of Labor Statistics, *RGMP Rank Among 60 Largest US Metros: Recovery somewhat mixed. Population Change (#)#10 Population Growth (%)#3 Employment Change (#)#10 Employment Growth (%)#5 Real GMP* Change (#)#33 Real GMP* Growth (%)#25

9 Source: Bureau of Labor Statistics. Nevada Recession Recoveries: 1948-Present Nevada job recovery from Great Recession after 91 months.

10 Source: Bureau of Labor Statistics. Nevada Recession Recoveries: 1948-Present Nevada job recovery from Great Recession after 91 months. Nevada US

11 Source: Bureau of Economic Analysis, International Monetary Fund. US Real GDP Actual: US real GDP further improving, compared to recent years.

12 Source: Bureau of Economic Analysis, International Monetary Fund. US Real GDP Forecast: US real GDP further improving, compared to recent years.

13 Source: Bureau of Economic Analysis, RCG Economics. Las Vegas Real Gross Metro Product: Las Vegas real GMP growth also improving coming out of Great Recession.

14 Source: Bureau of Economic Analysis, RCG Economics. Las Vegas Real GMP Forecast: Las Vegas real GMP growth also improving coming out of Great Recession.

15 Source: Nevada Department of Taxation. Clark County Taxable Retail Sales: Nov-04 to Nov-14 Taxable sales nearing all-time high, continues to fuel LV economy.

16 Source: Nevada Department of Taxation. Clark County Taxable Retail Sales: Nov-04 to Nov-14 Taxable sales nearing all-time high, continues to fuel LV economy.

T HE R EALITY : S OUTHERN N EVADA P OPULATION & J OBS 17

18 Source: Census Bureau. Las Vegas MSA High-Skill Population Growth (% Change): Las Vegas skilled worker pool has boomed since MSA Bach. Degree+ Pop. GrowthRank Total Pop. GrowthRank Charlotte, NC102%135%5 Grand Rapids, MI93%29%33 Las Vegas91%345%3 Austin, TX80%449%2 Raleigh, NC79%551%1 Riverside, CA74%634%8 Nashville, TN72%727%12 Orlando, FL66%837%4 San Antonio66%932%9 Phoenix63%1034%6

19 Source: Bureau of Labor Statistics. Las Vegas MSA Employment vs. US Employment (% Change): Dec-95 to Dec-14 Job growth hurt in ‘01 Recession but crippled by Great Recession.

20 Source: Bureau of Labor Statistics. Las Vegas MSA Employment vs. US Employment (% Change): Dec-95 to Dec-14 Job growth hurt in ‘01 Recession but crippled by Great Recession.

21 Sources: World Bank, Clark County Comprehensive Planning. Clark County Population vs. US Population (% Change): Great Recession severely reduced population growth, now recovering.

22 Source: Bureau of Labor Statistics. Nevada Employment vs. Rest of US (% Change): 2013 Nevada jobs bounce back big in 2013, but U-6 rate remains stubbornly high. Fastest Growing States 1-YR Growth Rate Slowest Growing States 1-YR Growth Rate North Dakota3.7%Rhode Island0.7% Nevada3.4%Arkansas0.6% Florida2.8%DC0.6% Oregon2.8%Pennsylvania0.5% Utah2.8%New Jersey0.5% Texas2.7%South Dakota0.4% Colorado2.7%Vermont0.3% California2.6%Virginia0.3% South Carolina2.5%West Virginia0.1% Delaware2.4%New Mexico-0.2%

23 Note: Quarterly figures are rolling averages of the 4 quarters ending in the noted quarter. Source: Bureau of Labor Statistics. Nevada U-3 & U-6 Unemployment Rates: Q4-09 to Q4-14 “Headline” Unemployment rate improving but U-6 rate still too high.

24 Source: Bureau of Labor Statistics. Las Vegas MSA Average Weekly Earnings: Dec-08 to Dec-14 Wages, after adjusting for inflation, remain stagnant.

25 Source: Bureau of Labor Statistics. Las Vegas MSA Average Weekly Earnings: Dec-08 to Dec-14 Wages, after adjusting for inflation, remain stagnant.

26 Source: Bureau of Labor Statistics. Las Vegas MSA Average Weekly Hours: Dec-08 to Dec-14 Age of the part-time worker. Weekly hours dropping as unemployment rate drops.

27 Source: Bureau of Labor Statistics. Las Vegas MSA Average Weekly Hours: Dec-08 to Dec-14 Age of the part-time worker. Weekly hours dropping as unemployment rate drops.

T HE R EALITY : S OUTHERN N EVADA G AMING & T OURISM 28

29 Source: Las Vegas Convention and Visitors Authority. Las Vegas Valley Hotel Revenue per Available Room: Dec-04 to Dec-14 RevPAR recovering slowly from recession but back up over $100.

30 Source: Las Vegas Convention and Visitors Authority. Las Vegas Valley Hotel Revenue per Available Room: Dec-04 to Dec-14 RevPAR recovering slowly from recession but back up over $100.

31 Source: Las Vegas Convention and Visitors Authority. Las Vegas Valley Visitor Volume: Dec-04 to Dec-14 Visitor volume at highest ever levels & continues to spike.

32 Source: Las Vegas Convention and Visitors Authority. Las Vegas Valley Visitor Volume: Dec-04 to Dec-14 Visitor volume at highest ever levels & continues to spike.

33 Source: Nevada Gaming Control Board. Clark County Gaming Revenue: Dec-04 to Dec-14 Gaming revenue increasing due to baccarat; net baccarat stagnant.

34 Source: Nevada Gaming Control Board. Clark County Gaming Revenue: Dec-04 to Dec-14 Gaming revenue increasing due to baccarat; net baccarat stagnant.

35 Source: AAA. US & Las Vegas MSA Gas Prices: One Year Ago to Current (2/2/2015) Gas prices have tumbled over the last several months.

T HE R EALITY : S OUTHERN N EVADA R EAL E STATE M ARKETS 36

37 Source: RCG Economics. Las Vegas Valley Commercial Real Estate Vacancy Rates: Q3/04 to Q3/14 Vacancy rates recovering across board, led by Industrial real estate.

38 Source: RCG Economics. Las Vegas Valley Commercial Real Estate Vacancy Rates: Q3/04 to Q3/14 Vacancy rates recovering across board, led by Industrial real estate.

39 Source: RCG Economics. Las Vegas Valley Distribution of Available Industrial Units, by Size: Q3/14 Lack of larger units hampering Industrial growth in LV; but help on the way.

40 Source: Home Builder's Research. Las Vegas MSA Weighted Sales & Median Home Price: Dec-04 to Dec-14 Home sales slowing as price rises & cash- buyers leave market.

41 Source: Home Builder's Research. Las Vegas MSA Weighted Sales & Median Home Price: Dec-04 to Dec-14 Home sales slowing as price rises & cash- buyers leave market.

L OOKING F ORWARD 42 “The only function of economic forecasting is to make astrology look respectable.” --John Kenneth Galbraith

43 Sources: *CBER, **Woods & Poole, ***NV State Demographer. Las Vegas MSA Population/Employment Forecast (% Change): Looking ahead: Las Vegas MSA poised to continue making strides. Las Vegas MSA (Pop./Emp.) Population*2.0%2.1% Population**1.8% Population***1.3%1.4% Employment**1.9% Three Rules of Forecasting If you give a number, don’t give a date. If you give a date, don’t give a number. If you get it right, don’t look surprised. -- Anonymous

44 LV office-using jobs will be the largest. Las Vegas Major Occupations Forecast, by Total Jobs: Source: EMSI, RCG Economics.

45 Retail jobs will be fastest growing. Las Vegas Major Occupations Forecast, by Percent Growth: Source: EMSI, RCG Economics.

46 Source: EMSI. Top 5 Las Vegas Industries, by Total Jobs: In terms of occupations, food service & administration will be the biggest BIGGEST.

47 Source: EMSI. Las Vegas Top 10 Job Forecast (# Change): In terms of the # of jobs that will be produced, Services will lead.

48 Source: EMSI. Las Vegas Top 10 Job Forecast 2014 Wages (for # Change): In terms of the # of jobs that will be produced, Services will lead.

49 Source: EMSI. Las Vegas Top 10 Job Forecast (% Change): In terms of the rate of growth, Healthcare & STEM jobs will lead.

50 Source: EMSI. Las Vegas Top 10 Job Forecast 2014 Wages (for % Change): In terms of the rate of growth, Healthcare & STEM jobs will lead.

W RAP -U P Y ESTERDAY, N OW & T OMORROW IN P ICTURES 51

52 While 2015 definitely won’t be another

53 It won’t be another 2008 either...

54 It won’t even be another 2009 –

55 But even though still a bit wobbly, the recovery will continue to take hold in Fed Policy Corporate Profits Gas Prices Resort Industry Health Recovering RE market Healthy Job Growth Population Growth Economic Development

56 Contact: John Restrepo