rs 5 2.2 Real Estate Supply 6 3 Commercial Real Estate Capital Markets 8 3.1 Public and Private Equity 8 3.2 Public and Private Debt 9 3.3 Commercial Real Estate Total Returns 10 4 Industrial Sector 11 4.1 Current Conditions 11 4.2 Outlook and Strategy 12 5 Office Sector 14 5.1 Current Conditions 14 5,2 Outloo

margins on mortgage loans (4%-5%) relative to deposit rates (0%) create a powerful incentive for banks to continue to grow their portfolios. la' 3.3 Commercial Real Estate Total Returns The commercial real estate market cooled at the beginning of 2016 amid a turbulent financial environment. Still, the asset class performed well on