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Newmark Grubb ACRES was founded in Salt Lake City, Utah in 1998 as a full service commercial real estate brokerage. It has since grown to include property management, property maintenance and global corporate services. For nearly two decades Newmark Grubb ACRES has been an industry leader and has consistently been recognized as one of Utah’s top commercial real estate brokerages. About Newmark Grubb Knight Frank Newmark Grubb Knight Frank is one of the world's leading commercial real estate advisory firms. Together with London-based partner Knight Frank and independently-owned offices, NGKF's 12,000 professionals operate from more than 320 offices in established and emerging property markets on five continents.

With roots dating back to 1929, NGKF's strong foundation makes it one of the most trusted names in commercial real estate. NGKF’s full-service platform comprises BGC’s real estate services segment, offering commercial real estate tenants, landlords, investors and developers a wide range of services including leasing; capital markets services, including investment sales, debt placement, appraisal, and valuation services; commercial mortgage brokerage services; as well as corporate advisory services, consulting, project and development management, and property and corporate facilities management services. For further information, visit www.ngkf.com.

NGKF is a part of BGC Partners, Inc. (NASDAQ: BGCP), a leading global brokerage company primarily servicing the wholesale financial and real estate markets. For further information, visitwww.bgcpartners.com.

Tel: 801.578.5555 Fax: 801.578.5500 www.ngacres.com 376 East 400 South, Suite 120 Salt Lake City, Utah 84111 Contact: Tami Goodwin Office:801.578.5554 Email:tgoodwin@ngacres.com

Market Report Snapshots for Q1

Newmark Grubb ACRES (NGA) is pleased to announce the release of the market report snapshots for the first quarter of 2017.

In the industrial market, an already low direct vacancy rate inched lower to 3.69% with 473,347 square feet (SF) absorbed in Q1 2017. Of the 3.1 million SF currently under construction, 68% is already pre-committed. Leasing and owner-user sales transaction SF volume were both slightly down year-over-year due partly to a dearth of available product, but prices per SF were up across most product types. Medium distribution had one of the largest year-over-year increases in lease rates at 17%.

The office market was fairly anemic with net absorption for Q1 at 41,805 SF. Direct vacancy rates for Classes B and C leveled out, and the Class A vacancy rate rose from a low in 2015 of 4.18% to 7.19% in Q1 0217, due in part to new construction coming to market. Lease transaction SF volume is down year-over-year but lease rates are up with Class C increasing the most. Owner-user sales transaction SF volume rose over 300% year-over-year.

Investment transaction dollar volume in Q1 2017 was the lowest of the past five first quarters but the number of transactions was the second highest of the past five. Multifamily investment transactions made up almost 50% of the total investment transaction dollar volume. Year-over-year cap rates were down for industrial, multifamily and office but up for retail.

In the 0-9,999 SF segment of the retail market, number of leases, lease rates and leased SF were up year-over-year but were all down in the 10,000+ SF segment. The number of owner-user sales is up year-over-year by 15% but the transaction SF and dollar volumes are both down with more transactions in the smaller segments. Single tenant investment sales dominated the number of investment transactions with close to 60% of the total Q1 transactions, an increase of 73% year-over-year.

To access more detailed reports, please visit our website at www.ngacres.com/market-research.