Company Update

November, 2018

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PS Business Parks Executive Leadership Team

Stuart Hutchison – Vice President, Southern CaliforniaStuart has been with the Company for 18 years and has served as VicePresident, Southern California since December, 2016, and prior to thatwas Regional Manager of Operations. Before joining PSB Stuart was withTranswestern and Fujita USA where he served as a Portfolio Manager.

Maria Hawthorne – CEO Maria has served as CEO since July, 2016, and at which time she was alsoelected as a member of our Board. Maria has over 33 years of experiencewith the Company and its affiliates and has held a variety of roles duringthat time, serving most recently as Chief Administrative Officer.

Chris Auth – Vice President, Washington MetroChris has been with the company for 12 years, serving in a variety ofroles. Since 2014 he has led the Washington Metro Division as itsDivisional Vice President. Prior to joining PSB, he worked for CummingProperties, a private owner/developer in the Greater Boston area.

David Vicars – Vice President, SoutheastDavid joined the company in 2004 and has served as Vice President,Southeast (Texas and South Florida). Prior to joining PSB, David spentover 25 years working in a leadership capacity at Compass Management,Leasing/Equitable Real Estate and The Horne Company.

Coby Holley – Vice President, Real EstateCoby joined the Company in 2003 and has served as Vice President, RealEstate since 2014, overseeing the Company’s acquisitions, dispositions anddevelopment. Prior to joining PSB, Coby was a Senior Vice President atCBRE.

Trenton Groves – Senior Vice President & CAOTrenton joined the Company in 2004 and has served as CAO sinceSeptember, 2018. Prior to then he was Vice President, Finance, andCorporate Controller. Before joining PSB Trenton was a manager at bothErnst & Young, LLP and Arthur Andersen, LLP.

Gene Uhlman – Vice President, ConstructionGene has served as Vice President of Construction since 2012 and has 16years of experience with the company. Prior to joining PSB, Gene was aReal Estate Manager for Murdock Development for 14 years.

Dick Scott – Vice President, Northern CaliforniaDick has served as Vice President, Northern California since he joined thecompany in 2012. Prior to joining PSB, Dick served as the ManagingDirector of Grubb & Ellis in Silicon Valley, was Vice President for EquityOffice Properties, and was a Partner in several real estate development LLCs.

John Petersen – Executive Vice President & COOJohn has served as COO since he joined the Company in 2004. Prior tojoining PSB, John was Senior Vice President, for Equity Office Propertiesfrom 2001-2004, and Senior Vice President with Spieker from 1995 to2001.

Jeff Hedges – Executive Vice President & CFOJeff joined the Company as CFO in September, 2018. Prior to joining PSBJeff was Senior Vice President for Invitation Homes from 2015-2018, andprior to that was a Senior Manager at Ernst & Young, LLP from 2006-2015.

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PS Business Parks Overview

Consistent long term outperformance of the S&P 500 and RMZ since going public in 1998

Same Park and total occupancy of 95.0% and 94.1%, respectively, as of September 30, 2018

Tenured management team focused on disciplined growth and generating quality operational cash flow

Optimized portfolio with a heavy concentration (85%) of light industrial/flex product in gateway markets

Over 28 million square feet of infill real estate and 395 multifamily units

Fortress balance sheet with strong liquidity; A- Corporate Rating from Standard & Poor’s

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Average Annual Total Shareholder Return

17.9%

12.8% 13.0% 12.8%

9.8%

7.8%

11.1%

9.1%

15.8%

8.5%9.9%

7.2%

0%

4%

8%

12%

16%

20%

5 Year 10 Year 15 Year 20 Year

PSB NAREIT S&P 500

Source: IPREO December 31, 2017

Consistent market outperformance as a result of disciplined investing, best in class operations, and prudent balance sheet management

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Disciplined Investment Strategy

Scale efficiencies in the markets we operate in

Value add redevelopment opportunities throughout portfolio

Adherence to below replacement cost investing

Functional assets in infill locations – first and last mile

Gateway markets with high barriers to entry and attractive demographics

Business park concentrations; multi-tenant buildings in multi-building parks

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Industrial/Flex85%

Office14%

Multi-family1%

Optimal Product in Prime Markets

(1) Percentages shown based on square feetDivisional/Regional Office ( ) = Number of business parks in state

Six States Three Product Types (1)

28.5 million square feet, including 96 business parks and 395 multi-family units

See Appendix A for FY 2018 investment summary and Appendix B for multi-family summary

Major land concentrations in gateway markets

Majority of portfolio (85%) comprised of small bay industrial

CA(44)

TX(21) FL

(3)

VA(19)

MD(6)

WA (3)

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People Focused Operations Model

Sophisticated, data driven leasing and property management practices

Market based leasing decisions

Disciplined approach to capital outlay (i.e. transaction costs)

Operations management team averages 12 years of employment at PSB

Decentralized operating platform staffed by seasoned local market experts

Customer centric focus with proactive outreach

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Stable and diversified tenant base with limited exposure to any single industry

Diverse Customer Base

As of September 30, 2018

Percentage of Total Rent by Sector

Business services 19.3%

Warehouse, distribution, transportation and logistics

11.5%

Computer hardware, software and related

services 10.5%

Health services 9.9%

Retail, food, and

automotive7.6%

Engineering and construction

7.4%

Government 6.8%

Insurance and financial services3.8%

Electronics 3.1%

Home furnishings 2.6%

Aerospace/defense products and services 2.2%

Communications 1.9%

Educational services 1.0%

Other 12.4%

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Fortress Balance Sheet

All figures as of September 30, 2018

Low leverage and absence of maturities provides an ability to seize accretive growth opportunities and recession resiliency

Preferred Equity 17.9%Common

Equity 82.1%

Highlights

No pending debt maturities

Low leverage/Strong ratios

Debt & preferred to EBITDA 3.5x

Fixed charge coverage ratio 5.3x

Investment Grade Ratings

S & P A- (Corporate)

BBB (Preferred Equity)

Moody’s Baa2 (Preferred Equity)

$250 million corporate credit facility capacity,

with additional $150 million accordion

$5.4 Billion Market Cap

Preferred equity

Average in-place coupon: 5.4%

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Occupancy & Rent Trends

92.1% 92.0%

92.9%

93.5%

94.1%94.4%

94.7%

-6.2%

-0.4%0.5%

4.4%5.3% 5.2%

2.9%

-10%

-8%

-6%

-4%

-2%

0%

2%

4%

6%

8%

10%

89%

90%

91%

92%

93%

94%

95%

2012 2013 2014 2015 2016 2017 YTD 2018

Ren

t C

hang

e on

Exe

cute

d L

ease

s (C

ash

Bas

is)

Sam

e P

ark

Occ

upan

cy

Occupancy Rent Change

Dedicated in-house leasing teams driving occupancy and rent growth

1

1. Rent growth for Industrial/Flex for the nine months ended September, 30 2018 was 7.7%

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Same Park NOI

$170.4

$201.7

$226.5

$237.7

$259.2

$270.6

$150

$170

$190

$210

$230

$250

$270

$290

2012 2013 2014 2015 2016 2017

Net

Ope

rati

ng I

ncom

e

Six consecutive years of strong NOI growth, averaging 3.7% annual Same Park NOI growth since 2012

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Same Park Capital Expenditures as % of NOI

Focused approach on generic, reusable improvements

Portfolio dynamic changing with decreasing commercial office exposure

Office requires constant capital infusion (see Appendix A for summary of Office sales YTD)

20.6%19.4%

17.2%

14.1%

11.6%

14.3%

11.8%

0%

5%

10%

15%

20%

25%

2012 2013 2014 2015 2016 2017 YTD 2018

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Key Performance Metrics

Long track record of generating consistent, quality operational cash flow

$1.10

$1.17 $1.19 $1.21

$1.19 $1.16

$1.12

$1.23 $1.26

$1.34 $1.31

$1.26

$1.36

$1.43 $1.39

$1.52 $1.55 $1.54 $1.52

$1.59 $1.59 $1.64

$0.50

$0.70

$0.90

$1.10

$1.30

$1.50

$1.70

Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 Q118 Q218 Q318

FAD Core FFO

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Environmentally and Socially Responsible

LEED or Energy Star certification on new development and re-development buildings

Reducing utility expenses by managing vacant suites and by replacing older equipment with energy efficient systems.

Installation of reflective “green roofs” as we re-roof or develop new buildings.

Water conservation through installation of smart plumbing devices and planting native-landscape species.

Contracting environmental footprint through paper recycling practices and utilization of trash compactors.

Ongoing conversion to LED lighting at our parks

Diversity in Our Workplace of 153 EmployeesEnergy Efficiency and Environmental Initiatives

Gender and Race

41% non-white with 27% in a supervisory role

Women make up 53% with 38% in a supervisory

role

Affirmative Action Plan Employer

President and CEO is a woman and diverse

Diversity and Independence of Board of Directors

67% Independent

33% Women

44% Under the Age of 60

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Appendix

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Appendix A: 2018 Investment Summary

Sales Square Feet

Corporate Pointe Business Park 161,000 $ 41.7 MM

Orange County Business Center 437,000 73.3 MM

Orangewood Office Park 107,000 18.3 MM

Northgate Business Park 194,000 11.8 MM

Total 899,000 $ 145.1 MM

Acquisitions

Northern Virginia Industrial Park and Fullerton Industrial Park 1,057,000 $ 142.4 MM

Net Proceeds

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Northern Virginia Industrial PortfolioSpringfield, VA

1,056,554 Square Feet64.67 Acres in Fairfax County

Appendix A: NVIP Acquisition (June 2018)

PSB GUNSTON

PSB ALBAN RD

PSB I-95 BP

PSB GUNSTON

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Appendix A: NVIP Property Overview

Seller: JP Morgan/MRP

1,056,554 SF

Light Industrial

10% Office

19 Buildings

73.9% Occupied

Avg Tenant: 6,755 SF

106 Customers

150 Customers When Stabilized

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Appendix A: NVIP Site Plan

Buildings 1-15814,074 SF I 75%

52.56 Acres

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Appendix A: Fullerton Road Site Plan

12.11 Acres

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Appendix B: Redevelopment Site Tysons,VA

751,000 SF to 3.5 Million SF

Potential Future Development Site

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Appendix B: Tysons, VA Redevelopment

The Mile

TCC

PSB owns 45 acres: “The Mile”40 acres left to be redeveloped

Under-served residential market

12th largest employment center in US

$7 billion in infrastructure improvements completed

4 newly developed metro stations in Tysons

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Appendix B: Highgate at the Mile

PSB holds 95% interest in JV with Kettler

Property opened June 1, 2017

395 UnitsAverage unit size 833 square feetMarket rates $2.50 to $2.75 per square feet17% of units are offered as workforce housing

Total project costs $115.9 millionProject costs includes unrealized landappreciation of $6.0 million

91.4% occupancy at September 30, 2018

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Safe Harbor Disclosure

This document may contain forward-looking statements within the meaning of Section 27A of theSecurities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statementsinclude, but are not limited to, statements related to the Company’s expectations regarding theperformance of its business, its financial results, its liquidity and capital resources and other non-historical statements. You can identify these forward-looking statements by the use of words such as“outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “seeks,”“approximately,” “projects,” “predicts,” “intends,” “plans,” “estimates,” “anticipates” or the negativeversion of these words or other comparable words. Such forward-looking statements are subject tovarious risks and uncertainties, including those described under the section entitled “Risk Factors” in theCompany’s Annual Report on Form 10-K for the year ended December 31, 2017, as such factors may beupdated from time to time in our periodic filings with the SEC, which are accessible on the SEC’s websiteat www.sec.gov. Accordingly, there are or will be important factors that could cause actual outcomes orresults to differ materially from those indicated in these statements. These factors should not be construedas exhaustive and should be read in conjunction with the other cautionary statements that are included inthis release and in the Company’s filings with the SEC. The Company undertakes no obligation topublicly update or review any forward-looking statement, whether as a result of new information, futuredevelopments or otherwise, except as required by law.