benchmark and capitalization analysisoct 31, 2014 · morrissey county ass nam street, ebraska 68...

REPORT DATE

OCTOBER 31, 2014

EFFECTIVE DATE OF CONCLUSIONS

JANUARY 1, 2015

PREPARED FOR

ROGER F. MORRISSEY

DOUGLAS COUNTY ASSESSOR 1819 FARNAM STREET, SUITE 400

OMAHA NEBRASKA, 68183

PREPARED BY

VALUATION SERVICES 5408 NORTH 99TH STREET SUITE A

OMAHA, NEBRASKA 68134

BENCHMARK ANALYSIS

AND CAPITALIZATION RATE STUDY

DOUGLAS COUNTY, NEBRASKA

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Table of Contents Page

Summary of Recommended Benchmark Rents and Capitalization Rates ...................................... 1 Introduction ..................................................................................................................................... 2 Acknowledgement of Assistance .................................................................................................... 2 Derivation of Capitalization Rates .................................................................................................. 3 Analysis of Office Properties .......................................................................................................... 5 Analysis of Retail Properties ........................................................................................................ 17 Analysis of Industrial Properties ................................................................................................... 30 Analysis of Apartment Properties ................................................................................................. 43 Addenda Qualifications of Kevin S. Kroeger ...............................................................................................53 Qualifications of Bradley D. Sheldrick ..........................................................................................55 Assumptions and Limiting Conditions ..........................................................................................56

Benchmark Analysis and Capitalization Rate Study – Douglas County, Nebraska

Effective Date – January 1, 2015 1

Summary of Recommended Benchmark Rents and Capitalization Rates

Office Full Service Recommended "Loaded"Class Rent per SF Capitalization Rate

A $26.00-$27.00 8.50%

B+ $19.50-$21.00 10.25%

B $18.00-$19.50 11.00%

C $14.00-$15.00 11.25%

D $9.00-$11.00 11.50%

Medical $18.00-$25.00 10.25%

CBD $14.00-$15.00 12.50%Retail Triple Net RecommendedClass Rent per SF Capitalization Rate

A $17.00-$20.00 7.25%

B $13.00-$15.00 8.00%

C $10.00-$12.00 9.00%

D $5.00-$7.00 10.00%

E $7.00-$9.00 9.75%

Box $5.00-$10.00 10.00%

CBD $10.00-$15.00 N/AIndustrial Triple Net RecommendedClass Rent per SF Capitalization Rate

Warehouse/Manfacturing < 20,000 SF

B $4.00-$5.00 8.00%

C $2.50-$3.50 8.50%

D $1.00-$1.50 11.00%

Warehouse/Manfacturing > 20,000 SF

B $4.00-$5.00 7.75%

C $2.50-$3.00 9.00%

D $2.00-$2.50 11.00%

Flex Building

A $8.00-$10.00 N/A

B $6.50-$7.50 7.75%

C $4.50-$5.50 9.00%

D $3.50-$4.25 11.00%Apartment Gross Rent Recommended "Loaded"Class Per SF Capitalization Rate

East of 72nd Street

A $14.40-$15.60 N/A

B $13.20-$14.40 N/A

C $9.00-$10.20 10.00%

D $7.80-$8.40 12.00%

West of 72nd Street

A $12.00-$13.20 8.25%

B $9.60-$10.80 8.00%

C $8.40-$9.60 9.50%

CBD $9.60-$14.40 8.50%

LIHTC $6.00-$9.00 N/A



Introduction This Benchmark Analysis and Capitalization Rate Study has been prepared for purposes of assisting the Douglas County Assessor’s office staff in valuing income-producing properties for ad valorem purposes. Prior to commencement of this assignment, meetings with various Douglas County staff members were conducted in order to determine the scope of work required. After determining the scope of work required, reasonable sample sizes for the various data sets were determined. Also determined were the methods of developing net operating income, vacancy percentages, and operating expenses for the various property types. Briefly summarized, the scope of work associated with this consulting assignment is to provide opinions of current rental rates and capitalization rates for the following property types:

Office Retail Industrial Apartments

Within each property type, rental rates and capitalization rates are developed for various investment classes as described in this report. Investment class designations used in this report include “A”, “B+”, “B”, “C”, “D”, and “E”. These classifications are in no way connected with and should not be confused with the similar classifications for construction associated with the Marshall Valuation Service. The various investment class categories are explained within the body of the report. Over 2,000 property records were initially researched in connection with completing both the benchmark analysis and the capitalization rate study. Information was obtained from a variety of sources including Douglas County public records, broker marketing information, and third-party comparable databases. While these sources of information are presumed to be reliable, accuracy of all information used in this analysis cannot be guaranteed. For each property type and investment class of property included in this analysis, matrixes of comparable rental data and capitalizations rates were created. Also analyzed were typical operating expenses as well as vacancy rates associated with each property type. These matrixes are included throughout this report. Acknowledgement of Assistance Assisting in the preparation of this report was Bradley Sheldrick, staff associate with Valuation Services. Bradley Sheldrick was responsible for assisting in data research associated with all aspects of this study.



Derivation of Capitalization Rates With respect to the capitalization rate study, standard and loaded capitalization rates were developed for the analysis, dependent on property type being analyzed. Standard capitalization rates were developed for retail and industrial properties, whereas loaded capitalization rates were developed for office and apartment properties. Examples of how both the standard and loaded capitalization rates were developed are included in the following examples. Derivation of Standard Capitalization Rates At the clients request standard capitalization rates have been developed for retail and industrial properties. The following is an example of how a standard capitalization rate has been developed for this study. A standard capitalization rate is based on net operating income calculated by deducting all typical expenses associated with property ownership from the property’s effective gross income. As an example, assume that a 7,000 square foot office building sold for $1,200,000. At the time of sale the building was subject to a stabilized vacancy and collection loss factor of 5%. Fixed expenses (real estate taxes and insurance) were $20,000. Variable expenses (management, maintenance, utilities, administration, miscellaneous, and reserve for replacements) were $35,000.

A reserve for replacements is a dollar allowance that provides for the periodic replacement of building components that wear out more rapidly than long-lived components of a building. Inclusion of a reserve for replacements tends to stabilize the long-term income stream for a property, especially when establishing net operating income for ad valorem purposes. As such, a reserve for replacement expense is considered applicable in this analysis. This expense typically equates to 2% to 5% of the effective gross income for a property. Newer or recently renovated properties would typically be at the lower end of the range, whereas older non-renovated properties would be at the upper end of this range.

IncomePotential Gross Income $140,000 Less Stabilized Vacancy & Collection Losses at 5% ($7,000)Total Effective Gross Income $133,000

Less Expenses Fixed Expenses (inclusive of real estate taxes) $20,000 Variable Expenses $35,000 Total Operating Expenses ($55,000)Estimated Net Operating Income $78,000

Sale Price $1,200,000 Standard Capitalization Rate 6.50%

Derivation of Standard Capitalization Rate



Derivation of Loaded Capitalization Rates At the client’s request, loaded capitalization rates have been developed for office and apartment properties. A loaded capitalization rate is based on net operating income calculated by deducting all typical expenses associated with property ownership excluding real estate taxes from the property’s effective gross income. The reasoning behind excluding the real estate tax expense from the expenses is so that sufficient income is afforded the property to pay the taxes based on the documented ad valorem market value. Any bias in the indicated value caused by reliance on previous assessed values or historic taxes is therefore been removed. In all instances, loaded capitalization rates will be higher than the standard capitalization rates. Using income and expense information for the same 7,000 square foot sold office property, the following is an example of how a loaded capitalization rate has been developed for sales of each property type.

IncomePotential Gross Income $140,000 Less Stabilized Vacancy & Collection Losses at 5% ($7,000)Total Effective Gross Income $133,000

Less Expenses Fixed Expenses (Excludes Real Estate Taxes) $2,000 Variable Expenses $35,000 Total Operating Expenses ($37,000)Estimated Net Operating Income $96,000

Sale Price $1,200,000 Loaded Capitalization Rate 8.00%

Derivation of Loaded Capitalization Rate

The loaded capitalization rate is 8.00% whereas the standard capitalization rate is 6.50%. Obviously, the property could be appraised with either capitalization rate so long as it is applied to the proper net operating income. In addition, if a lesser (or no) allowance were included for reserves, the capitalization rate would increase by a pro rata amount.



Analysis of Office Properties The office portion of this analysis was the first to be completed. In developing the benchmark study for office properties, rental information for approximately 470 properties was gathered and analyzed. With respect to the capitalization rate study, approximately 130 sale transactions were initially analyzed. Numerous rentals and sales were then eliminated from the primary analysis based on a number of criteria including:

the credibility of the information provided; whether the transaction was arms-length in nature; and overall conformity of the property in comparison to the market.

In the final analysis, a total of 172 rentals were used in the benchmark analysis, and 66 sale transactions were used in the capitalization rate analysis. The information used in each part of this study is summarized later in this section. Office Building Classifications A total of seven (7) investment classifications were identified as being applicable to the office market. These classifications are defined as follows:

Class A These are the most prestigious buildings competing for premier office users with rents at or above the upper range established by the local market. These buildings typically are in the best location, have a good appearance overall, and include high quality amenities (i.e. elevators, parking garages, etc.). Generally these properties are newer construction, or older properties which have received significant updating/remodeling. Buildings have high quality standard finishes, state of the art systems, exceptional accessibility, and a definite market presence. These facilities receive above average maintenance and professional management. Furthermore, they typically feature the best quality materials and workmanship throughout. Overall, these types of properties are sought out by investors because of their high quality.

Class B+ These are buildings competing for a wide range of users with rents less

than that of Class A properties in the area but higher than that of Class B. These buildings typically are in desirable locations and have an average to good appearance overall. Generally these properties are older construction, or newer construction properties which have lower quality than that of Class A buildings in the market. These facilities receive average maintenance and professional management over their economic lives. Building finishes are average to good for the area and systems are adequate, but the building does not compete with Class A at the same price. These buildings are typically considered more of a speculative investment and rely on lower prices to attract tenants and investors.



Class B These are buildings competing for a wide range of users with rents less than that of Class B+ properties in the area but higher than that of Class C. These buildings typically are in desirable locations and have an average to good appearance overall. Generally these properties are older construction, or newer construction properties which have lower quality than that of Class B+ buildings in the market. These facilities receive average maintenance and professional management over their economic lives. Building finishes are average to good for the area and systems are adequate, but the building does not compete with Classes A or B+ at the same price. These buildings are typically considered more of a speculative investment and rely on lower prices to attract tenants and investors.

Class C These are buildings competing for tenants requiring functional space at

rents below that of Class B buildings, but above that of Class D buildings. These buildings are typically located in secondary locations and have a fair to average appearance overall. Generally these are older properties offering basic space with few, if any, added amenities. These facilities receive fair to average maintenance and management. These buildings are not considered prestigious and rely on lower prices to attract tenants and investors.

Class D These are buildings which command rents at or below the lower-end of the

range established by the local market. These buildings are typically located in secondary locations and have a fair appearance overall. These are typically older properties which are nearing the end of their economic life and are in need of remodeling/renovations. These facilities are receiving fair maintenance and management. These properties are sometimes break-even or non-income producing properties.

Medical These are buildings built specifically for use as a medical facility.

Medical buildings have been classified separately from standard office buildings based on the higher quality of materials used in their construction. Furthermore, medical buildings typically require above average mechanical systems (HVAC, electrical, etc.) and contain a significant amount of plumbing. They have been excluded from all above classifications. These buildings are located throughout the county and vary in age and condition. Newly constructed facilities typically set the upper-end of the established rental range, while second generation and older facilities set the lower-end.

CBD These are multistory office buildings located within the central business

district of Omaha. They are typically older buildings (built prior to 2000) which have had adequate to good upkeep since their construction. Some of these buildings have undergone major renovations. Newer buildings (built after 2000) within the CBD are not included in this classification;



rather these buildings are typically included within the other defined office categories (i.e. Class A, B, or C).

Benchmark Rental Analysis On the following pages are tables summarizing the data that was gathered and analyzed in arriving at an opinion of market rents for the various classifications of office properties. All of the rents are reported on a full service basis which is typical for this market segment. In this type of lease arrangement the owner incurs all expenses associated with property ownership. If in my analysis of the various properties rents were not reported on a full service basis, the rental rate was adjusted to reflect a full service rate for analysis purposes.



Record Building Building Year Year Lease Asking Rent Actual RentNumber Class Size (SF) Built Renovated Type Low High Low High23 A 75,000 1999 Full Service $24.90 $24.9025 A 127,810 2013 Full Service $30.55 $30.5526 A 87,500 2014 Full Service $27.44 $27.4427 A 316,481 2010 Full Service $32.19 $32.1928 A 111,915 2008 Full Service $25.00 $34.0029 A 59,714 2008 Full Service $28.00 $29.0030 A 41,407 2008 Full Service $25.00 $30.5031 A 204,299 2004-2010 Full Service $24.25 $24.25 $23.75 $29.7532 A 110,000 2013 Full Service $27.75 $27.7533 A 13,632 1996 Full Service $25.00 $25.0034 A 1,082,100 2001 Full Service $25.00 $25.00 $24.00 $25.0035 A 23,578 2003 Full Service $27.40 $36.9036 A 4,397 2006 Full Service $27.75 $27.7537 A 25,605 2008 Full Service $25.30 $25.3038 A 10,775 2006 Full Service $28.65 $28.6539 A 5,173 2007 Full Service $27.35 $27.3540 A 2,798 2000 Full Service $25.20 $25.2041 A 3,437 1987 Full Service $29.05 $30.8042 A 31,421 2014 Full Service $25.40 $25.40

$26.51 $27.45 $26.76 $29.2621 B+ 33,364 1986 Full Service $19.50 $19.5022 B+ 24,000 1993 Full Service $21.50 $28.5024 B+ 24,000 1994 Full Service $20.00 $22.7879 B+ 37,857 1990 Full Service $18.00 $18.0080 B+ 18,343 1994 Full Service $18.50 $21.0081 B+ 60,039 1990 2010 Full Service $20.00 $20.00 $20.00 $20.0082 B+ 83,173 1986 Full Service $22.00 $22.00 $19.50 $22.0083 B+ 60,380 1996 Full Service $18.00 $21.0084 B+ 131,882 1977 Full Service $19.50 $19.5085 B+ 67,339 2003 Full Service $23.45 $23.45 $21.45 $23.4586 B+ 3,069 1988 Full Service $22.00 $22.0087 B+ 64,834 2007 Full Service $24.65 $24.65 $24.15 $25.1588 B+ 58,550 1968 2007 Full Service $18.00 $19.0089 B+ 62,030 1966 Full Service $19.50 $19.50 $19.50 $19.5090 B+ 2,085 2011 Full Service $23.00 $23.0091 B+ 1,320 2001 Full Service $22.00 $22.0092 B+ 2,505 1980 2009 Full Service $23.00 $23.0093 B+ 3,701 2010 Full Service $23.35 $23.3594 B+ 3,457 1958 Full Service $27.00 $27.0095 B+ 8,380 1976-84 Full Service $18.50 $18.5096 B+ 6,615 1999 Full Service $19.75 $19.7597 B+ 2,023 2001 Full Service $20.50 $20.5098 B+ 15,933 1988 Full Service $18.50 $18.50

Summary of Office Rents

Class A Mean



Record Building Building Year Year Lease Asking Rent Actual RentNumber Class Size (SF) Built Renovated Type Low High Low High99 B+ 742 1980 Full Service $20.00 $20.00100 B+ 3,956 2000 Full Service $20.50 $20.50101 B+ 34,997 1985 2007 Full Service $19.50 $19.50102 B+ 32,197 1990 2000 Full Service $19.50 $19.50103 B+ 28,021 2002 Full Service $18.95 $18.95104 B+ 4,865 1970 2008 Full Service $24.00 $24.00105 B+ 14,811 1980 Full Service $23.40 $23.40106 B+ 8,829 1985 2009 Full Service $20.00 $20.00107 B+ 16,914 1976 Full Service $19.50 $19.50108 B+ 3,108 1997 Full Service $22.95 $22.95109 B+ 3,547 2010 Full Service $15.00 $15.00

$21.14 $21.14 $19.97 $21.5320 B 26,378 1985 Full Service $18.00 $18.0043 B 6,291 1988 Full Service $17.10 $18.1044 B 6,862 2001 Full Service $19.35 $19.35 $19.80 $21.2445 B 27,077 1982-1991 2013 Full Service $16.30 $16.3046 B 17,857 1990 Full Service $16.47 $20.4447 B 4,800 2011 Full Service $21.80 $21.8048 B 13,800 1998 Full Service $17.60 $18.8549 B 30,122 1989 Full Service $19.50 $19.50 $16.50 $21.5050 B 9,417 1988 Full Service $17.72 $17.7251 B 21,700 1987 Full Service $17.25 $17.2552 B 20,292 1999 Full Service $20.38 $20.38 $20.13 $20.1353 B 96,324 1984 2008 Full Service $18.50 $18.5054 B 13,100 1997 Full Service $19.85 $19.85 $19.85 $22.1355 B 36,771 1986 Full Service $17.75 $17.75 $15.25 $15.2556 B 29,099 2000 2009 Full Service $20.14 $22.4557 B 6,239 1980 2000 Full Service $17.54 $17.5458 B 28,453 1985 Full Service $19.50 $19.5059 B 11,295 1988 Full Service $17.50 $18.2560 B 10,528 2005 Full Service $23.50 $23.5061 B 783 1971 Full Service $17.55 $17.5562 B 3,230 1999 Full Service $18.00 $18.0063 B 6,109 1997 Full Service $19.40 $19.4064 B 5,796 1979 Full Service $17.50 $17.5065 B 12,673 1982 Full Service $19.00 $20.0066 B 2,300 2012 Full Service $18.95 $18.9567 B 21,480 1968 Full Service $17.00 $17.0068 B 6,828 1975 2007 Full Service $18.50 $18.5069 B 16,296 1989 Full Service $18.50 $18.5070 B 13,517 1987 Full Service $18.50 $18.5071 B 6,151 1974 Full Service $17.95 $17.9572 B 25,761 1985 Full Service $19.00 $19.0073 B 3,066 1986 Full Service $20.00 $20.00

Summary of Office Rents (Continued)

Class B+ Mean



Record Building Building Year Year Lease Asking Rent Actual RentNumber Class Size (SF) Built Renovated Type Low High Low High74 B 2,944 2010 Full Service $16.25 $16.2575 B 29,899 1985 Full Service $19.50 $19.5076 B 21,997 1970 Full Service $25.00 $25.0077 B 3,552 1986 Full Service $19.50 $19.5078 B 10,139 1998 Full Service $19.00 $19.00

$19.08 $19.15 $18.20 $19.2216 C 5,320 1976 2010 Full Service $11.74 $12.20110 C 5,100 1997 Full Service $15.95 $15.95111 C 56,737 1968-1972 Full Service $11.00 $14.00 $10.00 $14.00112 C 24,792 1976 2002 Full Service $14.00 $16.00113 C 9,330 1965-1969 Full Service $14.73 $14.73 $13.10 $14.70114 C 11,232 1983-1994 Full Service $16.00 $18.00115 C 36,200 1988-1990 Full Service $17.50 $17.50 $17.50 $17.50116 C 17,070 1987 Full Service $17.00 $17.50117 C 35,170 1991-1994 Full Service $16.00 $16.00 $16.00 $17.00118 C 7,148 1982 Full Service $14.65 $17.60119 C 6,692 1984 Full Service $15.00 $15.00120 C 10,000 1975 Full Service $16.25 $16.25121 C 10,000 1977 Full Service $14.00 $14.00 $13.75 $15.00122 C 11,183 2005 Full Service $13.97 $13.97123 C 14,208 1964 Full Service $14.75 $14.75 $11.00 $14.00124 C 15,980 1970 1995 Full Service $13.15 $15.65125 C 23,700 2005 Full Service $15.00 $15.00126 C 1,831 1991 Full Service $17.60 $17.60127 C 4,769 1957 2002 Full Service $16.15 $16.15128 C 9,320 2003 Full Service $14.00 $14.00129 C 7,800 1982 Full Service $14.50 $14.50130 C 2,170 1981 Full Service $16.00 $16.00131 C 6,330 1982 Full Service $14.50 $15.50132 C 15,674 1973 Full Service $15.00 $15.00133 C 20,317 1913 2002 Full Service $12.50 $12.50134 C 9,000 2004 Full Service $11.95 $11.95135 C 1,739 1974 Full Service $12.50 $12.50136 C 2,756 1969 Full Service $16.00 $17.50137 C 775 1998 Full Service $17.25 $17.25138 C 13,915 1968 Full Service $14.50 $16.50139 C 8,829 1972 2009 Full Service $15.00 $18.00140 C 8,450 1975 2011 Full Service $18.50 $18.50141 C 1,641 1975 Full Service $15.50 $15.50142 C 2,552 1983 2007 Full Service $17.00 $17.00143 C 1,750 1906 2002 Full Service $13.71 $13.71144 C 8,811 1984 Full Service $15.50 $15.50145 C 14,695 1995 Full Service $15.95 $15.95

$15.06 $15.47 $14.36 $15.61


Class B Mean

Class C Mean



Record Building Building Year Year Lease Asking Rent Actual RentNumber Class Size (SF) Built Renovated Type Low High Low High146 D 14,484 1973 Full Service $12.60 $12.60 $12.00 $12.00147 D 10,200 1969 Full Service $9.50 $9.50 $8.00 $8.50148 D 10,223 1965 Full Service $8.00 $8.00 $8.00 $10.00149 D 37,166 1963 Full Service $9.28 $14.13150 D 2,150 1974 Full Service $11.52 $13.33151 D 1,530 1997 Full Service $13.10 $13.10152 D 1,000 1961 2007 Full Service $17.40 $17.40153 D 1,500 1948 Full Service $12.00 $12.00154 D 44,878 1955 Full Service $13.50 $13.50155 D 1,360 1973 Full Service $10.50 $10.50

$12.01 $12.21 $9.32 $11.16156 Medical 30,750 1980 Full Service $22.00 $23.00157 Medical 36,513 2010 Full Service $31.39 $31.39158 Medical 64,853 2008 Full Service $25.70 $29.70 $28.20 $29.70159 Medical 2,933 2006 Full Service $28.35 $28.35160 Medical 12,710 2000 Full Service $31.33 $31.33161 Medical 6,050 1979 2008 Full Service $17.50 $17.50 $31.69 $31.69162 Medical 97,262 2005 Full Service $31.55 $31.55 $31.55 $31.55163 Medical 164,020 2007-2009 Full Service $28.00 $28.00164 Medical 2,211 2006 Full Service $26.84 $26.84165 Medical 6,900 1957 2007 Full Service $22.45 $39.09166 Medical 2,756 1977 2014 Full Service $16.25 $16.25167 Medical 3,829 1980 Full Service $15.50 $15.50168 Medical 2,730 2001 Full Service $16.75 $16.75169 Medical 4,317 2007 Full Service $23.75 $23.75170 Medical 9,632 1980 Full Service $15.00 $15.00171 Medical 1,246 1992 Full Service $18.99 $18.99172 Medical 6,296 1967 Full Service $13.52 $13.52173 Medical 2,384 1988 Full Service $16.50 $16.50174 Medical 4,050 1969 Full Service $25.95 $25.95175 Medical 2,100 1985 Full Service $17.50 $17.50176 Medical 4,000 1986 Full Service $23.50 $23.50177 Medical 6,656 1996 Full Service $22.50 $22.50

$20.03 $20.30 $28.18 $30.09178 CBD 79,231 1915 2002 Full Service $13.50 $13.50 $13.00 $14.00179 CBD 433,386 1932-1985 2007 Full Service $19.25 $19.25 $17.00 $19.50180 CBD 51,775 1912 Full Service $13.00 $13.00 $13.00 $14.00181 CBD 43,875 1927 2002 Full Service $13.00 $13.00 $13.00 $14.00182 CBD 65,625 1965 2005 Full Service $13.50 $13.50 $13.00 $13.50183 CBD 327,492 1971 Full Service $18.50 $18.50 $17.00 $19.00184 CBD 55,519 1970 Full Service $15.50 $15.50 $14.00 $14.50185 CBD 126,547 1990 Full Service $18.50 $18.50186 CBD 12,064 1968 2006 Full Service $18.50 $18.50187 CBD 14,548 1981 Full Service $16.50 $16.50188 CBD 6,358 1890 1983 Full Service $17.00 $17.00189 CBD 66,104 1985 Full Service $10.00 $18.00190 CBD 11,285 1917 Full Service $19.50 $19.50

$15.87 $16.48 $14.29 $15.50

Class D Mean

Medical Mean

Central Business District Mean




Comparable Market Rent Conclusions Benchmark rent conclusions are summarized in the following chart:

Office Estimated Full Service Building Class Market Rent per SF

Low High Low High

Class A $26.51 $27.45 $26.76 $29.75 $26.00-$27.00

Class B+ $21.14 $21.14 $19.97 $21.53 $19.50-$21.00

Class B $19.08 $19.15 $18.20 $19.22 $18.00-$19.50

Class C $15.06 $15.47 $14.36 $15.61 $14.00-$15.00

Class D $12.01 $12.21 $9.32 $11.16 $9.00-$11.00

Medical $20.03 $20.03 $28.18 $30.09 $18.00-$25.00

CBD $15.87 $16.48 $14.29 $15.50 $14.00-$15.00

Indicated MeanFrom Actual Rents

Indicated MeanFrom Asking Rents

Of note, medical office buildings indicate a significantly wide range between the asking and actual rents indicated. This is due to the large difference between rents for first generation and second generation medical space. The indicated means from the actual rents reported in this analysis are more indicative of first generation medical space, and tend to set the upper end of the range. The indicated means from the asking rents are more heavily influenced by second generation space, and tend to set the lower end of the range. As such, the age of a property should be highly considered when establishing an opinion of market rent for medical office space. Office Vacancy Conclusions A vacancy analysis of office properties throughout Douglas County was conducted using CoStar Analytics. The county was divided geographically and vacancy percentages for each area were determined. My findings are summarized as follows:

Existing Available VacancyArea Inventory (SF) Inventory (SF) Percentage

East Omaha 14,337,967 825,546 5.8%

North-Central Omaha 2,026,387 178,186 8.8%

South-Central Omaha 8,424,678 843,652 10.0%

Northwest Omaha 3,084,786 365,049 11.8%

Southwest Omaha 5,163,199 502,709 9.7%

West Dodge Corridor 4,827,896 216,262 4.5%Total 37,864,913 2,931,404 7.7%

A map depicting the general geographic boundaries of the different areas is included on the following page.

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Overall Capitalization Rate Analysis The following tables summarize the data that was gathered and analyzed in determining capitalization rates for the various classifications of office properties.

Record Building Sale Year Sale Price "Loaded"Number Class Date Built Per Sq. Ft. Cap Rate121 A Nov-11 2006 $277.88 8.69%124 A Sep-13 2013 $222.33 9.06%125 A Sep-13 2009 $415.34 8.96%123 A Dec-13 2013 $297.43 8.29%122 A Mar-14 1989 $321.97 7.66%

8.53%128 B+ Apr-10 2001 $91.22 12.82%126 B+ Jul-10 1986 $146.27 9.44%190 B+ Sep-10 1994 $115.60 11.24%127 B+ Dec-10 1985 $135.72 9.66%130 B+ Oct-11 2005 $152.38 9.72%131 B+ Jul-12 1994 $104.73 9.18%129 B+ Nov-12 1973 $70.32 10.32%146 B+ Jun-13 1983 $121.59 9.34%132 B+ Feb-14 1991 $75.47 10.91%133 B+ Mar-14 1986 $92.00 10.52%147 B+ May-14 1988 $122.44 10.35%

10.32%144 B Jul-12 1950 $56.86 11.65%134 B Aug-12 2001 $173.01 8.83%135 B Sep-12 1985-2000 $91.19 11.39%136 B Oct-12 2001 $131.16 9.72%145 B Nov-12 1997 $67.41 13.77%137 B May-13 1992 $151.67 8.92%141 B Jun-13 1995 $60.62 13.40%143 B Jun-13 1968-1997 $66.27 13.48%139 B Jan-14 1998 $112.68 10.97%142 B May-14 2007 $133.78 10.19%140 B Aug-12 1988 $104.07 9.92%

11.11%157 C Mar-12 1967 $132.40 9.97%152 C Apr-12 1980 $105.00 11.42%156 C Apr-12 1985 $113.50 10.44%151 C Jul-12 1992 $98.80 9.49%148 C Sep-12 1975 $80.00 12.02%154 C Mar-13 1922 $62.84 10.32%149 C Apr-13 1979 $87.00 10.86%159 C Apr-13 1975 $89.13 12.39%155 C Jun-13 1971 $78.65 11.48%150 C Sep-13 1984 $99.71 11.76%

Summary of Office Capitalization Rates

Class A Mean

Class B+ Mean

Class B Mean



Record Building Sale Year Sale Price "Loaded"Number Class Date Built Per Sq. Ft. Cap Rate158 C Sep-13 1972 $58.72 11.84%161 C Dec-13 1997 $91.84 10.61%162 C Feb-14 1973 $76.22 13.25%153 C Mar-14 1984 $82.31 11.14%163 C Apr-14 1982 $76.13 12.83%

11.32%167 D Jun-12 1927-1965 $38.06 11.22%168 D Jun-12 1983 $21.93 22.32%170 D Sep-12 1997 $58.39 8.34%165 D Oct-12 1962 $27.95 15.43%173 D Dec-12 1934-1970 $49.07 7.99%169 D Mar-13 1963 $83.26 11.47%172 D May-13 1940 $57.85 9.52%171 D Jun-13 1924 $79.55 6.38%166 D Sep-13 1948 $40.19 10.24%174 D Nov-13 1973 $43.96 12.06%175 D Mar-14 1960 $46.29 12.49%

11.59%179 Medical Mar-10 1963 $81.90 11.58%177 Medical Jun-10 1969 $112.72 10.34%180 Medical May-11 1977 $79.17 12.21%176 Medical Dec-11 2011 $255.27 8.41%181 Medical Jul-12 1970 $176.74 9.22%183 Medical Dec-12 2000 $143.81 9.57%178 Medical Jun-13 1959-1987 $103.82 10.50%184 Medical Sep-13 2000 $116.76 11.20%

10.38%187 CBD Jan-10 1912 $14.61 19.66%185 CBD Nov-11 1909 $24.22 11.92%186 CBD Sep-13 1965 $61.94 9.96%188 CBD Nov-13 1912 $30.36 18.36%189 CBD May-14 1921 $32.40 10.49%

14.08%

Medical Mean

CBD Mean

Class C Mean

Class D Mean

Summary of Office Capitalization Rates(Continued)

Conclusions The majority of sales used in this analysis occurred between January 2012 and May 2014. However, several classes of office buildings had a limited number of transactions during that time period, and as such, some older transactions dating as far back as January 2010 were included and analyzed.



Considering all information, recommended loaded capitalization rates for the various office building classes for ad valorem assessment purposes are as follows:

Office Recommended LoadedClass Capitalization Rate

Class A 8.50%

Class B+ 10.25%

Class B 11.00%

Class C 11.25%

Class D 11.50%

Medical 10.25%

CBD 12.50%



Analysis of Retail Properties The retail portion of this analysis was the second to be completed. In developing the benchmark study for retail properties, rental information for approximately 440 properties was gathered and analyzed. With respect to the capitalization rate study, approximately 280 sale transactions were initially analyzed. Again, numerous rentals and sales were eliminated from the primary analysis based on:

the credibility of the information provided; whether the transaction was arms-length in nature; and overall conformity of the property in comparison to the market.

In the final analysis, a total of 178 rentals were used in the benchmark analysis, and 68 sale transactions were used in the capitalization rate analysis. The information used in each part of this study is summarized later in this section. Special-use properties including banks, service stations, convenience stores, restaurants, bars/taverns, and daycare centers have also been excluded from this analysis. Rather, this study focused on the following retail property types:

Community Center The typical size of a community center ranges from 100,000 to

450,000 square feet. These centers typically service a population of 40,000 to 150,000 within a radius of 3 to 6 miles.

Neighborhood Center The typical size of a neighborhood center ranges from 30,000 to

100,000. These centers typically service a population of 30,000 to 40,000 within a 3 mile radius. These centers provide the sale of convenience goods and personal services for the day to day living needs of the immediate neighborhood.

Convenience Center Any center smaller than 30,000 square feet. This type of center

serves the immediate neighborhood, and provides goods and services similar to that of the neighborhood center. This type of center can be unanchored or anchored by something other than that of a supermarket or large department store (i.e. mini-market).



Retail Building Classifications A total of seven (7) investment classifications were identified as being applicable to the retail market. These sub-classifications are defined as follows:

Class A Generates rents at or above the upper range established by the local market. These buildings are typically in the best location and feature best quality materials and workmanship throughout. These properties are newer construction, or older properties which have received significant updating/remodeling. Buildings typically have high quality standard finishes, state of the art systems, exceptional accessibility, and a definite market presence. These facilities receive above average maintenance and professional management.

Class B Generate rents less than that of Class A properties in the area but higher

than that of Class C. These buildings typically are in desirable locations and have an average to good appearance overall. Generally these properties are older construction, or newer construction properties which have lower quality than that of Class A buildings in the market. These facilities receive average maintenance and professional management over their economic lives. Building finishes are average to good for the area.

Class C Generate rents below that of Class B buildings, but above that of Class D

buildings. These buildings are typically located in secondary locations as compared to Class A and B properties. These properties have a fair to average appearance overall. Generally these are older properties. These facilities receive fair to average levels of maintenance and management.

Class D These are buildings which command rents at or below the lower-end of the

range established by the local market. These buildings are typically located in secondary locations and have a fair appearance overall. These are typically older properties which are nearing the end of their economic life and are in need of remodeling/renovations. These facilities are receiving fair levels of maintenance and management.

Class E This class represents all commercial buildings (other than retail centers)

located east of 72nd Street, consisting of both single tenant and multitenant buildings. The buildings are a combination of older and more recently renovated properties. This class includes free-standing retail, attached retail, and mixed-use buildings. Rents vary widely in this class and are directly affected by location and age.

Box Retail This class represents junior anchor and anchor type properties. These

buildings are located throughout Douglas County and vary widely in age. Typically these buildings contain a minimum of 10,000+ square feet of retail space. This class includes both freestanding and attached buildings.



Age appears to have a large effect on rents generated. Newer or recently renovated properties tend to set the upper end of the rent range while older renovated properties set the lower end.

CBD This class represents retail space located within the Omaha CBD. This

space is most typically main level retail bays located within mixed-use office or apartment buildings. These properties vary significantly in age and/or date renovated, and age/renovation appears to have a large effect on rents generated. Newer or renovated properties tend to set the upper end of the range while older renovated properties set the lower end. Little to no sale data on CBD retail space exists; as such, only a benchmark analysis for this property type has been provided.

Benchmark Rental Analysis On the following pages are tables summarizing the data that was gathered and analyzed in arriving at an opinion of market rents for the various classifications of retail properties. All of the rents are reported on a triple-net basis which is typical for this market segment. In a triple net lease, the tenant (lessee) is responsible for paying all operating expenses associated with real estate taxes, building insurance, utilities, interior maintenance and repairs, and grounds maintenance. The owner (lessor) is responsible for expenses associated with vacancy and collection losses, leasing commissions, structural maintenance and repairs, reserves for replacements, and expenses during periods of vacancy. If property rents were not reported on a triple-net basis, the rental rate was adjusted to reflect a triple-net rate for analysis purposes.



Record Building Building Year Year Lease Asking Rent Actual RentNumber Class Size (SF) Built Renovated Type Low High Low High191 A 12,767 2001 NNN $21.00 $21.00 $18.50 $20.00192 A 18,664 2003 NNN $16.00 $19.00193 A 34,790 2004 NNN $15.50 $20.00194 A 10,745 2005 NNN $14.00 $25.00195 A 12,066 1999 2008 NNN $26.01 $32.50196 A 80,714 2010 NNN $16.00 $25.00197 A 8,127 2011 NNN $22.00 $23.00198 A 11,714 2001 2008 NNN $17.00 $22.00 $15.00 $28.00199 A 27,515 2007 NNN $17.00 $25.17200 A 4,551 2006 NNN $19.10 $23.19201 A 125,746 2000 NNN $18.50 $20.00202 A 2,000 2004 NNN $21.00 $21.00203 A 3,779 2004 NNN $20.00 $20.00204 A 48,843 1955 2010 NNN $20.00 $20.00 $18.00 $20.00206 A 6,783 1987 2010 NNN $27.00 $27.00207 A 58,000 2005 NNN $25.00 $27.00208 A 1,614 1980 NNN $20.00 $20.00

Class A Mean $21.06 $22.00 $17.92 $23.71209 B 14,000 2000 NNN $12.00 $16.00210 B 20,235 2003 NNN $12.50 $14.50 $12.50 $14.50211 B 26,590 2005 NNN $12.50 $12.50 $12.00 $14.00212 B 9,548 2005 NNN $14.00 $14.00 $14.00 $15.00213 B 12,834 2007 NNN $14.00 $14.00 $14.00 $15.00214 B 11,003 2004 NNN $15.50 $15.50 $12.00 $15.00215 B 9,610 2007 NNN $14.00 $19.25216 B 25,293 1997 NNN $13.00 $13.00 $10.00 $17.43217 B 7,787 2006 NNN $16.00 $16.00 $12.48 $15.46218 B 13,822 2010 NNN $15.50 $25.00219 B 22,310 2010 NNN $17.50 $17.50 $13.00 $18.00220 B 39,532 1985 NNN $11.00 $26.00221 B 35,373 2004 NNN $14.75 $14.75 $15.00 $19.00222 B 16,820 2006 NNN $17.00 $18.00223 B 7,000 1989 2010 NNN $17.00 $17.50224 B 9,589 2007 NNN $16.00 $16.00 $14.75 $17.46225 B 16,596 2004 NNN $14.50 $14.50 $14.80 $21.00226 B 12,632 2005 NNN $16.50 $16.50 $16.22 $19.48227 B 8,154 2006 NNN $14.00 $18.00228 B 19,880 1984 NNN $15.00 $15.00 $12.00 $17.00229 B 1,470 1980 2009 NNN $17.50 $17.50230 B 4,758 2010 NNN $15.50 $15.50231 B 9,830 1976 NNN $16.00 $16.00232 B 5,100 2013 NNN $15.50 $16.50233 B 1,215 1994 NNN $16.00 $16.00

Summary of Retail Rents



Record Building Building Year Year Lease Asking Rent Actual RentNumber Class Size (SF) Built Renovated Type Low High Low High234 B 9,227 1965 1987 NNN $18.00 $20.00235 B 9,500 2010 NNN $16.50 $17.50236 B 5,395 1982 2008 NNN $16.50 $16.50237 B 13,365 1982 NNN $15.00 $19.75238 B 1,200 2005-2007 NNN $18.00 $18.00239 B 6,970 2010 NNN $16.50 $16.50240 B 1,632 2006 NNN $19.00 $19.00241 B 2,700 2007 NNN $18.00 $18.00242 B 15,369 2008-2010 NNN $16.00 $20.00243 B 9,341 1996 NNN $15.00 $15.00244 B 2,418 2010 NNN $14.50 $14.50245 B 903 2006 NNN $14.50 $14.50246 B 3,650 1999 NNN $14.00 $14.00247 B 4,000 2006 NNN $14.00 $14.00248 B 4,500 2004 NNN $14.00 $14.00

Class B Mean $15.51 $15.95 $13.66 $17.90

249 C 24,934 1986 2008 NNN $9.50 $11.00 $8.50 $11.85250 C 9,000 1966 NNN $8.45 $9.55251 C 32,654 1998 NNN $13.00 $13.00 $7.68 $13.00252 C 21,400 1978 2010 NNN $8.95 $8.95 $9.00 $9.50253 C 33,420 1970 NNN $12.00 $12.00 $9.00 $12.00254 C 26,400 1972 2010 NNN $12.00 $15.00255 C 16,800 1999 NNN $7.00 $10.00256 C 11,250 1975 Recent NNN $12.00 $12.00 $5.99 $13.03257 C 7,488 1998 Recent NNN $16.00 $16.00 $14.00 $17.00258 C 44,308 1988 NNN $12.50 $12.50 $8.00 $13.00259 C 2,916 2004 NNN $13.00 $13.00260 C 11,074 2006 NNN $14.00 $14.00261 C 2,886 2009 NNN $12.00 $12.00262 C 16,240 1986 NNN $9.75 $9.75 $9.00 $11.00263 C 23,254 1987 NNN $8.50 $11.00264 C 19,880 1984-1985 NNN $9.50 $13.00265 C 27,648 1974 Recent NNN $8.75 $8.75 $7.50 $10.00266 C 34,948 1979-1980 NNN $13.50 $13.50 $10.00 $14.30267 C 13,208 1995 NNN $10.25 $10.25 $10.00 $14.00268 C 22,772 1996 NNN $14.50 $14.50 $9.00 $13.00269 C 60,116 1984 NNN $9.00 $12.25270 C 69,750 1974 2008 NNN $15.00 $15.00 $12.00 $14.00271 C 34,604 1986 NNN $11.50 $11.50 $11.00 $16.00272 C 27,488 1965-1969 NNN $15.00 $15.00 $14.30 $14.30273 C 25,860 1986 NNN $8.00 $10.00 $12.00 $14.30274 C 8,570 1990 NNN $14.82 $15.60275 C 13,518 2001 NNN $13.75 $13.75 $16.00 $16.50

Summary of Retail Rents (Continued)



Record Building Building Year Year Lease Asking Rent Actual RentNumber Class Size (SF) Built Renovated Type Low High Low High276 C 2,480 1977 NNN $8.00 $8.00277 C 5,304 1974 NNN $10.50 $10.50278 C 3,000 1987 NNN $12.50 $12.50279 C 2,400 1990 NNN $14.00 $14.00280 C 1,457 2010 NNN $13.50 $13.50281 C 21,000 1991 NNN $12.00 $12.00282 C 1,897 2014 NNN $14.00 $14.00283 C 5,500 1963 NNN $9.00 $9.00284 C 5,184 1974 NNN $8.75 $8.75285 C 2,400 1981 NNN $9.50 $9.50286 C 5,350 1991-2001 NNN $7.95 $7.95287 C 3,530 1974 NNN $9.65 $9.65288 C 7,170 1977-2007 1980 NNN $8.50 $8.50

Class C Mean $11.39 $11.51 $10.42 $13.04

289 D 17,600 1965 NNN $7.50 $7.50 $7.00 $7.00290 D 14,089 1970 NNN $6.25 $6.25 $6.25 $6.50291 D 12,040 1980 NNN $5.25 $8.15292 D 32,354 1978 NNN $9.00 $9.00 $5.00 $9.00293 D 17,950 1971 NNN $5.25 $5.75 $4.00 $5.05294 D 12,000 1965 NNN $4.80 $4.80295 D 10,000 2005 NNN $10.50 $10.50 $6.71 $6.71296 D 13,860 1971 NNN $5.40 $6.50297 D 12,105 1971 NNN $6.00 $8.25298 D 7,754 1973 NNN $4.75 $6.85299 D 7,695 1927 NNN $4.61 $8.22300 D 81,021 1962-1967 NNN $8.00 $8.00 $7.50 $8.50301 D 8,890 1971 2010 NNN $7.50 $7.50302 D 38,946 1978 2006 NNN $9.00 $9.00303 D 10,000 1983 NNN $8.00 $8.00304 D 2,100 1971 2010 NNN $6.00 $6.00305 D 5,223 1961 NNN $9.00 $9.00306 D 10,824 1970 NNN $4.95 $7.95307 D 6,090 1986 NNN $8.45 $8.45308 D 9,258 1977 NNN $8.95 $8.95309 D 7,963 1970 NNN $6.46 $7.50310 D 11,960 1950 NNN $5.00 $8.00311 D 9,292 2002 NNN $5.95 $6.45

Class D Mean $7.40 $7.87 $5.61 $7.13332 E 8,300 1923 2010 NNN $4.80 $4.80333 E 7,790 1928 2003 NNN $9.68 $9.68334 E 8,000 1998 NNN $12.44 $12.44335 E 15,400 1955 2000 NNN $7.00 $7.25336 E 7,994 1998 NNN $6.00 $6.00




Record Building Building Year Year Lease Asking Rent Actual RentNumber Class Size (SF) Built Renovated Type Low High Low High337 E 8,583 1937 NNN $4.95 $4.95338 E 2,920 1915 NNN $9.76 $9.76339 E 3,828 1900 2008 NNN $7.10 $7.10340 E 3,100 1908 NNN $8.10 $8.10341 E 2,000 1924 NNN $7.50 $7.50342 E 1,334 1920 NNN $7.15 $7.15343 E 1,033 1920 NNN $6.85 $6.85344 E 3,083 1900 NNN $7.37 $7.37345 E 5,080 1915 2001 NNN $13.50 $13.50346 E 5,968 1888 1988 NNN $8.00 $8.00347 E 2,085 1885 2010 NNN $7.95 $9.95348 E 1,320 1924 NNN $7.85 $7.85

Class E Mean $9.33 $9.83 $7.59 $7.61312 Box 33,000 2006 NNN $8.75 $8.75313 Box 19,002 1983 2006 NNN $8.14 $8.14314 Box 15,100 2007 NNN $6.75 $6.75315 Box 20,087 2006 NNN $13.50 $13.50316 Box 16,048 2000 NNN $16.34 $16.34317 Box 79,385 2000 NNN $8.35 $8.35318 Box 42,628 1996 NNN $14.85 $14.85319 Box 26,949 2000 NNN $11.40 $11.40320 Box 127,332 1974 2007 NNN $5.00 $6.50321 Box 20,233 1970 NNN $5.60 $5.60322 Box 65,822 1973-1987 NNN $4.67 $4.67323 Box 165,052 1970 NNN $7.50 $7.50 $5.00 $6.65324 Box 63,728 1990 NNN $6.49 $6.49325 Box 16,141 1972 NNN $8.50 $8.50326 Box 155,912 1974 NNN $5.50 $6.00327 Box 63,366 1985 2000 NNN $2.27 $5.00328 Box 81,946 1971 NNN $6.00 $7.75329 Box 25,810 1988 NNN $7.00 $7.00330 Box 73,000 1987 NNN $6.00 $6.00331 Box 30,450 1983 2006 NNN $10.00 $10.00

Box Retail Mean $7.30 $7.65 $8.19 $8.59

349 CBD 4,213 2006 NNN $22.00 $22.00350 CBD 2,179 2011 NNN $27.00 $27.00351 CBD 8,295 1928 2004 NNN $25.00 $25.00352 CBD 26,057 2010 NNN $20.00 $20.00353 CBD 3,500 1889 NNN $17.00 $17.00354 CBD 5,396 1900 1970 NNN $16.88 $16.88355 CBD 6,573 1990 NNN $17.50 $17.50356 CBD 2,085 2009 NNN $16.00 $16.00




Record Building Building Year Year Lease Asking Rent Actual RentNumber Class Size (SF) Built Renovated Type Low High Low High357 CBD 21,210 1884 NNN $11.00 $13.00358 CBD 12,400 1900 1998 NNN $12.46 $12.46359 CBD 6,866 1880 2011 NNN $12.50 $12.50360 CBD 7,400 1990 NNN $9.74 $9.74361 CBD 1,694 1911 NNN $13.50 $13.50362 CBD 1,256 1950 2010 NNN $10.00 $10.00363 CBD 2,000 1969 NNN $10.00 $10.00364 CBD 8,852 1905 NNN $11.00 $11.00365 CBD 5,803 1906 2002 NNN $10.00 $10.00366 CBD 3,575 1958 NNN $12.00 $12.00367 CBD 1,600 1912 NNN $4.50 $4.50368 CBD 4,200 1955 NNN $6.00 $6.00369 CBD 6,116 1910 1994 NNN $6.00 $6.00

CBD Retail Mean $13.72 $13.83 $14.67 $14.67


Comparable Market Rent Conclusions My benchmark rent conclusions are summarized in the following chart:

Retail Estimated NNNBuilding Class Market Rent per SF

Low High Low High

Class A $21.06 $22.00 $17.92 $23.71 $17.00-$20.00

Class B $15.51 $15.95 $13.66 $17.90 $13.00-$15.00

Class C $11.39 $11.51 $10.42 $13.04 $10.00-$12.00

Class D $7.40 $7.87 $5.61 $7.13 $5.00-$7.00

Class E $9.33 $9.83 $7.59 $7.61 $7.00-$9.00

Box $7.30 $7.65 $8.19 $8.59 $5.00-$10.00

CBD $13.72 $13.83 $14.67 $14.67 $10.00-$15.00



Of note, both box retail and CBD retail properties indicate significantly wide ranges of rents. Furthermore, the indicated means from the asking rents are actually lower than the indicated means from actual rents. This is due to the large difference between rents for first generation and second generation retail space. The indicated means from the actual rents are typically being affected by first generation or renovated retail space, which tends to set the upper end of the ranges. The indicated means from the asking rents are more heavily influenced by older second generation space, which tend to set the lower end of the ranges. As such, the age of a property should be highly considered when establishing an opinion of market rent for either box retail space or CDB retail space.



Retail Vacancy Conclusions A vacancy analysis of retail properties throughout Douglas County was conducted using CoStar Analytics. The county was divided geographically and vacancy percentages for each area were determined. Both the vacancy for all retail space and for retail centers only was analyzed. My findings are summarized as follows:


East Omaha 9,555,753 406,856 4.3%



Northwest Omaha 4,167,576 211,318 5.1%

Southwest Omaha 9,831,743 550,942 5.6%

West Dodge Corridor 2,603,194 121,724 4.7%

Total 39,259,215 2,238,647 5.7%

Vacancy for All Retail Space


East Omaha 1,680,248 140,166 8.3%



Northwest Omaha 1,576,744 159,256 10.1%

Southwest Omaha 4,566,762 362,573 7.9%

West Dodge Corridor 900,628 79,782 8.9%Total 13,429,420 1,245,901 9.3%

Vacancy for Retail Centers Only

At the request of the client additional vacancy rate data for specific corridors was also researched. The following information is based on the corridors from I-680 west to 204th Street with a half-mile radius on both sides.

Existing Available VacancyCorridor Inventory (SF) Inventory (SF) Percentage

Maple 2,902,027 112,444 3.9%Pacific 540,337 28,207 5.2%

West Center 4,244,566 255,855 6.0%

Vacancy for All Retail Space


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Record Building Sale Year Sale Price CapitalizationNumber Class Date Built Per Sq. Ft. Rate

191 A Dec-12 2006 $229.28 7.36%192 A Dec-12 2001 $232.84 7.23%193 A May-13 2010 $199.40 7.29%194 A Mar-14 1994 $216.15 7.76%

Class A Mean 7.41%

198 B Jan-11 2005 $126.21 9.09%199 B Nov-11 2010 $150.16 8.26%196 B May-13 2007 $177.81 7.99%195 B Jun-13 1995 $175.56 6.77%197 B Apr-14 2006 $120.09 7.36%200 B Apr-14 2000 $150.00 8.37%201 B Apr-14 2006-2009 $153.38 8.18%142 B May-14 2007 $133.78 8.28%

Class B Mean 8.04%

204 C Jun-11 1976 $54.31 12.53%208 C Aug-11 2004 $139.68 7.62%207 C Sep-11 1976 $89.92 9.45%202 C Aug-12 1985 $106.12 8.12%211 C Sep-12 1976 $68.27 9.81%213 C Mar-13 1977 $53.48 10.60%203 C Apr-13 1975 $101.71 7.94%212 C May-13 1900 $44.49 10.93%210 C Jul-13 1978 $85.59 8.80%206 C Dec-13 2001 $139.42 7.55%205 C Feb-14 1998 $142.07 7.20%209 C Apr-14 2001 $79.86 6.65%

Class C Mean 8.93%

217 D Jan-11 1954 $59.22 8.21%218 D Oct-11 1975 $62.50 7.45%220 D Jun-12 1950 $36.28 10.75%216 D Jan-13 1965 $21.31 22.18%215 D Mar-13 1961 $24.50 10.70%214 D Jun-13 1925 $12.18 18.84%219 D Aug-13 1970 $31.05 12.75%221 D Mar-14 1955 $34.14 10.44%

Class D Mean 12.67%

245 E Mar-11 1932 $111.11 9.28%234 E Apr-11 1900 $42.67 8.86%238 E Jun-11 1911 $25.00 11.33%239 E Aug-11 1910 $42.93 10.67%240 E Aug-11 1964 $75.10 8.65%244 E Sep-11 2011 $67.62 8.39%230 E Nov-11 1900 $35.55 9.63%

Summary of Retail Capitalization Rates



Record Building Sale Year Sale Price CapitalizationNumber Class Date Built Per Sq. Ft. Rate236 E Nov-11 1908 $57.94 8.15%229 E Jan-12 1910 $40.06 10.16%235 E Jan-12 1958 $66.58 7.30%224 E Apr-12 1903 $30.70 9.14%231 E Aug-12 1955 $43.75 8.64%233 E Aug-12 1907 $70.85 6.10%237 E Aug-12 1923 $42.93 11.00%243 E Aug-12 1920 $31.25 10.80%232 E Sep-12 1926 $35.22 10.73%241 E Oct-12 1935 $87.14 6.19%242 E Nov-12 1922 $22.07 14.34%225 E Feb-13 1900 $55.48 7.79%247 E Mar-13 1923 $49.94 7.44%250 E Mar-13 1902 $42.24 8.00%222 E Apr-13 1927 $32.45 14.64%248 E Apr-13 1950 $38.70 8.38%226 E Jul-13 1912-2001 $35.18 8.70%227 E Jul-13 1885 $37.11 11.03%246 E Oct-13 1940 $45.82 10.25%223 E Dec-13 1907 $66.21 7.78%251 E Mar-14 1930 $60.37 10.73%249 E Apr-14 1912 $67.33 11.76%228 E May-14 1880 $26.33 16.30%

Class E Mean 9.74%256 Box Oct-11 1989 $70.29 9.98%253 Box Feb-12 1985 $43.40 11.69%254 Box Jun-12 1981 $61.04 9.59%255 Box Nov-13 1992 $73.74 13.39%252 Box Apr-14 2000 $254.36 6.08%257 Box Jun-14 1993 $47.64 12.28%

Box Retail Mean 10.50%

Summary of Retail Capitalization Rates (Continued)



Conclusions Considering all information, recommended capitalization rates for the various retail property classes for ad valorem assessment purposes are as follows:

Retail RecommendedClass Capitalization Rate

Class A 7.25%

Class B 8.00%

Class C 9.00%

Class D 10.00%

Class E 9.75%

Box 10.00%



Analysis of Industrial Properties In developing the benchmark study for industrial properties, rental information for approximately 250 properties was gathered and analyzed. With respect to the capitalization rate study, approximately 160 sale transactions were initially analyzed. Numerous rentals and sales were then eliminated based on the same criteria as that stated for office and retail properties. In addition, special use industrial properties such as service garages and heavy manufacturing facilities were excluded from this analysis. In the final analysis, 169 rentals were used in the benchmark analysis, and 100 sale transactions were used in the capitalization rate analysis. Industrial Building Classifications In this analysis, the following two primary classifications have been used:

Warehouse/Light Manufacturing Flex

A total of four (4) investment classifications have been identified as being applicable to each of these primary classifications. These sub-classifications are defined as follows: Warehouse/ Light Manufacturing

Class A These buildings typically are in the best location and have a good appearance overall. Generally these properties are newer construction, or older properties which have received significant updating/remodeling. They have a significant amount of average to good quality office finish and air conditioned interior. Typically these buildings have above average ceiling heights and are more than functionally adequate in design.

Class B These buildings typically are in newer industrial districts and have

an average to good appearance overall. They may have an above average amount of average to good quality office finish and air conditioned interior. Generally these buildings are functionally adequate and feature average quality building materials.

Class C These buildings typically are located in long-established industrial

districts and have an average appearance overall. They have a minimal amount of office finish and air conditioning (i.e. 20% or less). Typically these buildings have ceiling heights ranging from 12’ to 24’ and are at best functionally adequate in design.

Class D These buildings typically are located in average or below locations

and have an overall appearance of average or below. They have little or no office finish and air conditioned interior. Typically



these buildings are below average in design and workmanship. Lower than average ceiling heights may limit the potential uses.

For analysis purposes, the previously described building classes (Classes A thru D) for warehouse and light manufacturing facilities have been further divided into categories by size. These categories include buildings greater than 20,000 square feet in size, and buildings less than 20,000 square feet in size. Flex Building

Class A These buildings typically are in the best location and have a good appearance overall. These properties are generally newer construction, or are older properties which have received significant updating or remodeling. They have a significant amount of interior finish and air conditioning. These buildings have good fenestration and will tend to look like an office building or retail center in design. The buildings are typically multitenant in design and significant amounts of high intensity lighting and plumbing exist. These buildings will have good partitioning and finish work throughout.

Class B These buildings typically are in average or better locations and

have an average appearance overall. They have an adequate amount of interior finish and air conditioning. These buildings have average fenestration and are typical of industrial developments. The buildings are typically multitenant in design and will have average partitioning and average finishes throughout.

Class C These buildings are typically located in well-established industrial

districts and have an average appearance overall. They have an adequate amount of interior finish and air conditioning. These buildings are typically plain with little to no fenestration, and are typically multitenant in design. Lesser and lower quality partitioning and finishes exist than in Class A or B properties.

Class D These buildings typically are in average or below locations and

have an average or below appearance overall. Typically there is a minimal amount of interior finish and air conditioning. The buildings are typically multitenant in design. Lesser and lower quality partitioning and finishes exist than in Class C properties.



Benchmark Rental Analysis On the following pages are tables summarizing the data that was gathered and analyzed in arriving at an opinion of market rents for the various classifications of industrial properties. As with the retail market segment, all of the rents are reported on a triple-net basis

Record Building Building Year Year Lease Asking Rent Actual RentNumber Class Size (SF) Built Renovated Type Low High Low High452 B 15,000 1996 NNN $5.60 $5.60453 B 16,571 1989 NNN $6.22 $6.22454 B 6,289 1976 NNN $7.25 $7.25455 B 9,600 1987 NNN $5.95 $5.95456 B 9,285 1982 NNN $6.50 $6.50457 B 7,128 1993 NNN $7.00 $7.00458 B 1,200 1982 NNN $7.50 $7.50459 B 6,500 1978 NNN $9.25 $9.75460 B 7,200 1974 NNN $6.50 $6.50461 B 4,320 1968 2001 NNN $8.50 $8.50462 B 52,528 1974 NNN $5.25 $5.25463 B 14,712 2003 NNN $4.05 $4.05464 B 70,560 1974 NNN $3.55 $3.73 $3.95 $5.10465 B 11,250 1985 NNN $4.54 $4.54466 B 9,840 1977 NNN $4.75 $4.75467 B 4,900 2007 NNN $4.65 $4.65468 B 12,423 1946 NNN $4.15 $4.15469 B 4,600 1989 NNN $5.20 $5.20470 B 18,175 1970 2006 NNN $5.99 $5.99471 B 1,400 1987 NNN $5.75 $5.75472 B 4,000 1982 NNN $5.10 $5.10473 B 13,127 1971 2009 NNN $5.75 $5.75474 B 4,800 1997 2007 NNN $5.95 $5.95475 B 3,342 1963 NNN $6.00 $6.00476 B 9,750 1978 NNN $5.00 $5.00

Class B Whse/Manf < 20,000 Mean $6.24 $6.28 $5.12 $5.23477 C 51,200 1981 NNN $3.00 $3.50478 C 10,550 1957 NNN $3.00 $3.00479 C 12,200 1956 NNN $3.30 $3.30480 C 12,800 1977 NNN $3.00 $3.00481 C 11,920 1956 1999 NNN $4.50 $4.50482 C 18,750 1975 NNN $3.25 $3.25483 C 13,060 1972 NNN $3.00 $3.00484 C 13,203 1972 NNN $2.50 $2.50485 C 4,840 1983 NNN $4.50 $4.50486 C 7,095 1980 NNN $4.50 $4.50487 C 15,576 1956 NNN $4.40 $4.40489 C 10,000 1910 2009 NNN $3.95 $3.95490 C 13,060 1972 NNN $3.75 $3.75492 C 1,500 2005 NNN $4.65 $4.65

Class C Whse/Manf < 20,000 Mean $4.32 $4.32 $3.01 $3.08488 D 10,072 1928 NNN $3.25 $3.25493 D 7,200 1959 NNN $1.78 $1.78

Summary of Industrial Rents



Record Building Building Year Year Lease Asking Rent Actual RentNumber Class Size (SF) Built Renovated Type Low High Low High494 D 18,800 1954 NNN $0.88 $1.29495 D 15,000 1954 1976 NNN $2.00 $2.00496 D 18,010 1892-1969 NNN $2.15 $2.15497 D 10,400 1920-1945 1930-56 NNN $1.75 $1.75498 D 9,525 1971 NNN $2.75 $2.75499 D 36,670 1957 NNN $2.50 $2.50500 D 3,584 1958 NNN $2.75 $2.75501 D 12,673 1945 NNN $1.95 $1.95502 D 12,624 1959-1964 NNN $1.00 $1.00503 D 14,780 1939-2004 NNN $1.75 $1.75

Class D Whse/Manf < 20,000 Mean $2.19 $2.19 $1.33 $1.54505 B 34,790 1980 NNN $5.17 $5.17506 B 60,290 1979-1989 NNN $4.46 $4.46507 B 30,625 1974-1996 NNN $4.41 $4.41508 B 20,000 1980 NNN $4.25 $4.25509 B 30,000 1969 NNN $4.70 $4.70510 B 33,120 1969 NNN $4.00 $4.00511 B 143,600 1958 2006 NNN $3.50 $3.50512 B 28,982 1976 NNN $4.50 $4.50513 B 50,452 1988 NNN $4.50 $4.50514 B 69,623 1975-1985 NNN $5.25 $5.25515 B 70,272 1998 NNN $3.95 $3.95516 B 58,000 1996 NNN $4.25 $4.25517 B 43,326 1986 NNN $5.00 $5.00518 B 37,194 1910 1980 NNN $4.00 $4.00519 B 119,774 1983 NNN $3.95 $3.95540 B 175,000 2009 NNN $8.10 $8.10

Class B Whse/Manf > 20,000 Mean $4.32 $4.32 $5.01 $5.01520 C 101,225 1966 NNN $2.75 $2.75521 C 79,483 1972 NNN $2.50 $3.35522 C 51,200 1979 NNN $2.85 $3.25523 C 51,200 1977 NNN $2.10 $2.25524 C 78,988 1974 NNN $2.75 $4.00525 C 43,560 1966 NNN $3.35 $3.35526 C 214,000 1966 1973 NNN $3.50 $3.50527 C 182,230 1965 NNN $3.35 $3.35528 C 78,656 1953 NNN $3.82 $3.82529 C 37,800 1977 NNN $3.33 $3.33530 C 22,900 1971 NNN $3.85 $3.85531 C 39,342 1972 NNN $3.00 $3.00532 C 20,000 1966 NNN $3.10 $3.10533 C 71,500 1975 NNN $2.60 $3.75534 C 27,200 1973 NNN $3.00 $3.00

Class C Whse/Manf > 20,000 Mean $3.40 $3.40 $2.97 $3.29

Summary of Industrial Rents (Continued)



Record Building Building Year Year Lease Asking Rent Actual RentNumber Class Size (SF) Built Renovated Type Low High Low High535 D 20,791 1929 NNN $2.00 $2.00536 D 30,950 1969 NNN $2.50 $2.50537 D 83,716 1910-1999 NNN $2.50 $2.50538 D 46,560 1966 NNN $2.95 $2.95539 D 31,724 1963 NNN $2.50 $2.50

Class D Whse/Manf > 20,000 Mean $2.65 $2.65 $2.25 $2.25370 A 30,151 1989 NNN $11.50 $11.50 $7.90 $11.50371 A 96,756 2006-2008 NNN $5.00 $10.00372 A 4,800 2005 NNN $12.77 $12.77373 A 6,592 1994 NNN $7.95 $7.95374 A 36,357 1989 2013 NNN $10.00 $10.00375 A 9,030 2002-2011 NNN $10.50 $10.50376 A 3,579 1965 2013 NNN $10.00 $10.00377 A 7,120 2001 2012 NNN $10.95 $10.95378 A 15,750 2009 NNN $10.00 $10.00379 A 6,797 2004 2012 NNN $7.50 $9.95380 A 44,945 1988-95 2013 NNN $5.00 $8.00

Class A Flex Building Mean $9.27 $9.87 $8.56 $11.42381 B 17,612 1998 NNN $5.50 $6.25382 B 14,766 2002 NNN $6.00 $8.00383 B 17,500 1970 NNN $6.50 $6.50 $6.50 $7.00384 B 4,373 1986 NNN $7.75 $7.75385 B 6,116 1991 NNN $6.00 $6.00386 B 31,821 1989 NNN $7.50 $8.00387 B 12,492 1993 NNN $7.50 $7.50 $5.16 $7.97388 B 60,116 1984 NNN $9.00 $12.25389 B 16,022 1987 Recent NNN $8.75 $8.75390 B 12,375 1994 NNN $7.45 $7.45391 B 2,700 1984 NNN $7.50 $7.50392 B 9,598 1990 NNN $6.75 $6.75393 B 2,300 2001 NNN $7.45 $7.45394 B 15,000 1986 NNN $9.95 $9.95395 B 9,900 1985 NNN $8.95 $9.95396 B 4,320 2005 NNN $8.89 $8.89397 B 3,250 2002 NNN $8.50 $8.50398 B 6,000 1994 NNN $7.95 $7.95399 B 31,757 1988 NNN $5.95 $5.95400 B 10,800 1990 2000 NNN $5.75 $5.75401 B 36,874 1989-2000 NNN $5.25 $5.25

Class B Flex Building Mean $7.45 $7.52 $6.91 $8.00402 C 15,300 1999 NNN $6.00 $6.00 $5.25 $6.00403 C 3,175 1994 NNN $5.95 $5.95404 C 2,730 1982 NNN $5.04 $5.04405 C 22,320 1966 NNN $4.35 $4.35




Record Building Building Year Year Lease Asking Rent Actual RentNumber Class Size (SF) Built Renovated Type Low High Low High406 C 20,040 1969 NNN $4.25 $5.00 $4.00 $4.50407 C 22,320 1969 NNN $4.35 $4.35408 C 45,000 1975 NNN $6.50 $6.50 $4.75 $5.25409 C 149,850 1987-1993 NNN $6.50 $7.00 $5.00 $6.50410 C 7,200 1978 NNN $5.75 $5.75411 C 19,709 1986 NNN $4.50 $5.00 $4.75 $4.75412 C 16,380 1971 NNN $4.50 $6.50413 C 24,110 1990 NNN $5.50 $5.50414 C 25,600 1976 NNN $4.95 $4.95 $5.00 $5.00415 C 2,500 1987 NNN $4.55 $4.55416 C 11,700 1997 NNN $4.27 $6.80417 C 41,000 1971 NNN $5.50 $5.50 $4.75 $5.25418 C 17,950 1971 NNN $5.25 $5.25 $4.00 $5.05419 C 12,105 1971 NNN $6.00 $8.25420 C 18,812 1972 NNN $5.25 $5.25421 C 19,454 1973 NNN $5.50 $5.50 $5.00 $7.00422 C 13,860 1971 NNN $5.40 $6.50423 C 9,455 1986 NNN $4.25 $5.25424 C 12,100 1988 NNN $3.95 $3.95425 C 12,000 1976 NNN $4.10 $4.10426 C 4,800 1994 NNN $8.00 $8.00427 C 6,000 1978 NNN $5.25 $5.25428 C 7,696 1995 NNN $4.95 $4.95429 C 9,030 2001 2003 NNN $3.95 $6.95430 C 2,782 1965 NNN $6.25 $6.25431 C 2,730 1982 NNN $5.50 $5.50432 C 2,800 1977 NNN $4.95 $4.95433 C 2,178 1972 NNN $5.25 $5.25434 C 4,250 1985 NNN $5.25 $5.25435 C 6,400 1973 NNN $5.50 $6.50436 C 9,000 1989 NNN $5.75 $5.75437 C 2,000 1994 NNN $5.50 $5.50438 C 10,525 1971 NNN $5.75 $5.75439 C 3,277 1977 NNN $4.95 $6.75440 C 2,220 1966 NNN $5.50 $5.50451 C 2,835 2006 NNN $4.50 $4.50

Class C Flex Building Mean $5.29 $5.59 $4.92 $5.62441 D 6,000 1966-1967 NNN $3.85 $3.85442 D 48,000 1970 NNN $4.45 $4.45 $3.50 $4.25443 D 24,750 1966 NNN $3.60 $4.35444 D 7,750 1968 NNN $4.10 $4.45445 D 4,000 1969 NNN $4.45 $4.45446 D 9,800 1977 NNN $4.75 $4.75447 D 6,295 1987 NNN $3.95 $3.95448 D 2,240 1971 NNN $4.50 $4.50449 D 9,000 1998 NNN $4.50 $4.95450 D 7,500 1970 NNN $4.45 $4.45

Class D Flex Building Mean $4.39 $4.49 $3.65 $4.15





Industrial Estimated NNNBuilding Class Market Rent per SF

Low High Low HighWarehouse & Manufacturing < 20,000 SF

Class B $6.24 $6.28 $5.12 $5.23 $4.00-$5.00

Class C $4.32 $4.32 $3.01 $3.08 $2.50-$3.50

Class D $2.19 $2.19 $1.33 $1.54 $1.00-$1.50

Warehouse & Manufacturing > 20,000 SF

Class B $4.32 $4.32 $5.01 $5.01 $4.00-$5.00

Class C $3.40 $3.40 $2.97 $2.97 $2.50-$3.00

Class D $2.65 $2.65 $2.25 $2.25 $2.00-$2.50

Flex Building

Class A $9.27 $9.87 $8.56 $11.42 $8.00-$10.00

Class B $7.45 $7.52 $6.91 $8.00 $6.50-$7.50

Class C $5.29 $5.59 $4.92 $5.62 $4.50-$5.50

Class D $4.39 $4.49 $3.65 $4.15 $3.50-$4.25



Of note, the majority of truly Class A warehouse and light manufacturing facilities is owner occupied and little or no reliable rental data for this property classification is available. As such, no “Class A” warehouse and manufacturing rental analysis is included in this analysis. Industrial Vacancy Conclusions A vacancy analysis of industrial properties throughout Douglas County was conducted using CoStar Analytics. The county was divided geographically and vacancy percentages for each area were determined. My findings are summarized as follows:


Northeast Omaha 9,145,615 499,219 5.5%

Southeast Omaha 3,456,124 78,286 2.3%

Northwest Omaha 23,121,903 1,354,015 5.9%

Southwest Omaha 14,796,089 316,205 2.1%Total 50,519,731 2,247,725 4.4%


Benchma

Effective

ark Analysis

Date – Janu

and Capital

uary 1, 2015

lization Rate

5

e Study – Doouglas Countty, Nebraskaa

37



Expenses Based on a review of operating expenses associated with local industrial properties and discussions with various market participants, expense ratios for industrial properties (including a reserve for replacements) in Douglas County are estimated as follows:

Building Class Expense RatioWarehouse/Manufacturing < 20,000

Class A 6%-9%

Class B 8%-10%

Class C 9%-12%

Class D 10%-15%

Warehouse/Manufacturing > 20,000

Class A 6%-9%

Class B 8%-10%

Class C 9%-12%

Class D 10%-15%

Flex Building

Class A 6%-9%

Class B 8%-10%

Class C 9%-12%Class D 10%-15%

Overall Capitalization Rate Analysis On the following pages are tables summarizing the data that was gathered and analyzed while determining capitalization rates for the various classifications of industrial properties.



Record Building Sale Year Sale Price CapitalizationNumber Class Date Built Per Sq. Ft. Rate283 B Jan-11 1985-2000 $65.55 8.19%279 B Feb-12 2003 $59.48 9.15%280 B Apr-12 1963-1999 $73.72 6.81%277 B Jun-12 1996 $64.44 7.30%282 B Sep-12 1986 $93.15 8.09%281 B Sep-12 1981 $70.83 7.43%278 B Oct-12 1989 $69.38 7.61%285 B Oct-12 1994 $60.98 6.86%284 B Dec-12 1996 $56.67 7.53%286 B Jan-14 1975 $49.89 8.39%287 B Apr-14 1987 $44.79 11.61%

8.09%296 C Jan-11 1996 $53.81 7.94%288 C Mar-11 1885-1932 $31.50 9.30%292 C Jul-11 1989 $42.64 8.52%299 C Aug-11 2007 $28.57 11.34%291 C Feb-12 1999 $51.71 9.40%297 C Feb-12 1988 $56.90 8.26%301 C Apr-12 1972 $31.02 9.44%290 C Jul-12 1976 $52.82 7.92%298 C Nov-12 1962 $38.68 8.66%295 C May-13 1970 $57.14 7.63%300 C Jun-13 1972 $43.75 7.64%302 C Aug-13 1885-1987 $32.74 8.95%294 C Dec-13 2007 $6.63 6.46%307 C Jan-14 1977-1979 $60.44 8.31%289 C Feb-14 1974 $55.37 9.16%303 C Mar-14 2009 $30.98 10.81%293 C Mar-14 1972 $58.33 8.10%304 C Mar-14 1955 $52.27 7.21%305 C May-14 1968 $65.97 8.88%306 C Jun-14 2011 $56.25 8.93%

8.64%311 D Feb-11 1926 $34.97 8.61%309 D Jul-11 1955 $17.28 11.33%308 D Nov-11 1958 $17.68 11.84%313 D Aug-12 1973-1985 $33.78 9.91%314 D Dec-12 1966 $16.01 13.06%312 D Dec-12 1951 $19.53 15.00%316 D Apr-13 1934-1935 $6.87 17.30%315 D May-13 1965 $30.30 8.28%318 D Nov-13 1917 $16.26 8.53%310 D Dec-13 1938 $17.37 11.64%

Summary of Industrial Capitalization Rates

Class B Warehoue/Manufacturing < 20,000 Mean

Class C Warehouse/Manufacturing < 20,000 Mean



Record Building Sale Year Sale Price CapitalizationNumber Class Date Built Per Sq. Ft. Rate317 D Dec-13 1970 $7.14 13.12%319 D Mar-14 1930-1931 $13.24 11.97%320 D Mar-14 1910 $14.25 11.92%

11.73%326 B Mar-11 2000 $46.02 8.25%325 B Oct-11 1990 $47.27 8.57%324 B Dec-11 1973 $49.44 7.78%323 B Dec-12 2006 $66.92 7.75%322 B Feb-14 2003 $52.88 6.31%327 B Apr-14 1980 $46.54 9.23%328 B May-14 2001 $67.34 6.35%

7.75%332 C Mar-11 1961-1978 $11.47 15.00%342 C Jul-11 1977 $27.94 10.15%341 C Jul-11 1969-2003 $40.90 7.43%334 C Aug-11 1969-1977 $34.99 8.74%331 C Aug-11 1973 $19.83 9.65%340 C Jan-12 1962 $21.66 10.39%339 C Mar-12 1969-1980 $41.96 8.02%333 C Apr-12 1973 $28.04 10.11%330 C May-12 1956-1997 $12.86 14.84%343 C Aug-12 1963 $20.52 9.70%346 C Nov-12 1969 $19.88 12.63%344 C Nov-12 1969 $33.00 9.55%338 C Nov-12 1964-2000 $55.57 6.03%345 C Nov-12 1953 $39.21 7.47%335 C Apr-13 1989 $33.93 7.76%329 C Apr-13 1978-2005 $37.05 8.08%347 C Jun-13 1965-1973 $29.60 8.48%337 C Jul-13 1955 $27.54 6.64%336 C Oct-13 1992 $35.00 8.10%

9.41%348 D May-11 1927-1992 $10.96 14.45%350 D Nov-11 1953 $11.00 10.80%351 D Oct-12 1892-1969 $11.54 9.67%349 D Jan-13 1949-1989 $10.52 11.94%353 D Jun-13 1916 $16.15 11.66%354 D Jun-13 1920 $10.71 11.09%352 D Jun-13 1920 $28.83 10.36%355 D Nov-13 1912 $28.24 9.81%356 D Nov-13 1958-1978 $9.62 12.35%358 D Apr-14 1910 $4.06 16.26%357 D May-14 1966 $18.08 10.95%

11.76%

Summary of Industrial Capitalization Rates (Continued)

Class D Warehouse/Manufacturing < 20,000 Mean

Class B Warehouse/Manufacturing > 20,000 Mean

Class C Warehouse/Manufacturing > 20,000 Mean

Class D Warehouse/Manufacturing > 20,000 Mean



Record Building Sale Year Sale Price CapitalizationNumber Class Date Built Per Sq. Ft. Rate260 B Mar-11 2001 $51.44 7.91%261 B Oct-11 2001 $87.19 6.97%258 B Nov-11 1975 $74.43 7.31%259 B Nov-11 1984 $64.84 8.75%262 B Jun-12 1996 $48.61 7.91%263 B Mar-13 2005 $52.38 8.16%

Class B Flex Mean 7.84%266 C Aug-11 1978 $59.39 11.09%268 C Nov-11 1969 $59.58 9.49%264 C Jun-12 1987 $54.01 8.07%269 C Aug-12 1985 $54.16 8.13%274 C Aug-12 2001 $41.56 10.27%265 C Mar-13 1990 $49.67 8.43%267 C Jan-14 1968 $53.43 8.00%272 C Apr-14 1976 $36.20 9.25%

Class C Flex Mean 9.09%270 D Jan-12 1972 $22.58 11.12%276 D Mar-13 1965 $39.06 10.71%271 D May-13 1978 $23.61 13.49%275 D Aug-13 1889-1946 $31.10 9.42%273 D Nov-13 1987 $35.15 10.14%

Class D Flex Mean 10.98%

Summary of Industrial Capitalization Rates (Continued)



Conclusions

All of the sales used in this analysis occurred between January 2011 and June 2014. Very limited sale data exists for truly Class A industrial buildings in all of the property types; as such, Class A buildings have been excluded from this analysis.

Considering all information, recommended capitalization rates for the various industrial building classes for ad valorem assessment purposes are as follows:

Industrial RecommendedClass Capitalization Rate

Warehouse/Manufacturing < 20,000

Class A N/A

Class B 8.00%

Class C 8.50%

Class D 11.00%

Warehouse/Manufacturing > 20,000

Class A N/A

Class B 7.75%

Class C 9.00%

Class D 11.00%

Inustrial Flex

Class A N/A

Class B 7.75%

Class C 9.00%Class D 11.00%



Analysis of Apartment Properties The apartment portion of this analysis was the last to be completed. In developing the benchmark study for apartment properties, rental information for a approximately 150 properties was gathered and analyzed. With respect to the capitalization rate study, approximately 122 sale transactions were initially analyzed. After numerous sales were exempted due to varying criteria, a total of 117 rentals were used in the apartment benchmark analysis, and 44 sale transactions were used in the capitalization rate analysis. Apartment Building Classifications A total of six (6) investment classifications were identified as being applicable to the apartment market. These classifications are defined as follows:

Class A Class A apartments are typically located in the best areas, have a very good to excellent appearance, and include high quality amenities (i.e. clubhouse, fitness center, controlled access, washer/dryer in unit, pool, vaulted ceilings, premium views, and garages, etc.). Generally these properties are newer construction, or are older properties which have received significant updating or remodeling. These facilities receive above average maintenance and skilled professional management. Furthermore, they feature the best quality materials and workmanship throughout.

Class B Class B apartments are typically located in desirable locations and have an

average to good overall appearance. They will include a significant amount of amenities, with materials not quite commensurate in quality as that used in Class A apartments. These properties tend to be slightly older in construction than Class A, or are significantly older and have received significant updating/remodeling. In many instances, these were Class A properties when originally built, but have progressed downward in class due to age, condition, location, or other conditions. These facilities receive average to good maintenance and tend to be professionally managed.

Class C Class C apartments tend to be in older, established areas and have an

average overall appearance. They will include numerous amenities (i.e. swimming pool, fitness facility, garages, etc.) but lack the “in unit” amenities found in Class A and B apartment properties. Generally these properties are older construction, and receive average maintenance and a combination of both skilled and non-skilled management.

Class D Class D apartments are typically located in secondary locations which may

lack tenant appeal. Amenities typical of Class C and above apartment properties are either very limited or non-existent in Class D apartments. Construction finishes are generally of low quality. These properties tend to



be older with items of deferred maintenance being typical. Class D properties tend to receive below average maintenance levels and are often owner-managed.

CBD CBD apartments are typically located on upper levels of mixed-use

buildings located within or on the periphery of Omaha’s central business district. This class includes new construction, older renovated apartment buildings, and older non-renovated apartment buildings. Newer construction tends to have amenities not found in older non-renovated properties and rents tend to set the upper-end of the rental range in the CBD. Older renovated buildings set the lower-end of the rental range and include an adequate amount of amenities.

LIHTC As part of the Tax Reform Act of 1986, the United States Congress

created the Low-Income Housing Tax Credit (LIHTC) (IRC Section 42) to promote development of affordable rental housing for low-income individuals and families. The Low-Income Housing Tax Credit encourages investment of private capital in the development of rental housing by providing a credit to offset an investor's federal income tax liability. The amount of credit a developer or investor may claim is directly related to the amount of qualified development costs incurred and the number of low-income units developed that meet the applicable federal requirements for both tenant income and rents. In essence, these are income restricted projects in which tenants must qualify to rent based on income levels. Maximum rents are dictated by a development agreement between the developer and the Nebraska Investment Finance Authority who oversees the LIHTC program for Nebraska.

Benchmark Rental Analysis On the following pages are tables summarizing the data that was gathered and analyzed in arriving at an opinion of market rents for the various classifications of apartments. For analysis purposes the previously Apartment Classes A thru D as previously described have been furthered divided into east and west categories using 72nd Street as the dividing line. All apartment rents have been calculated based on the rentable size of the apartment units. That is, it is based on the estimated area of the living units only, excluding all common areas. In Douglas County, apartments typically lease on a modified gross basis. In this type of lease arrangement the tenant incurs electricity and gas expenses associated with their individual apartment, while the owner incurs all other expenses associated with property ownership. These expenses include real estate taxes, insurance, management fees, maintenance, common area utility expenses, water and sewer expenses for all units, and reserves for replacement. Apartment rents for the various categories of apartments are included throughout the following pages.



Record Building Year Number Unit Size MonthlyNumber Class Built of Units Range (SF) Rent Range Monthly Annually16 A 2009-2010 357 539-1,450 $1.22 - $1.51 $1.38 $16.5617 A 2008-2009 114 591-1,156 $1.18 - $1.36 $1.26 $15.12

Class A East of 72nd Street Mean $1.32 $15.8418 B 1916 8 826 $1.08 - $1.33 $1.20 $14.4019 B 1925 16 428-921 $1.03 - $1.29 $1.05 $12.60

20 B 1921 9 657-849 $1.00 - $1.38 $1.22 $14.64

21 B 1918 11 750-1,050 $1.12 - $1.19 $1.15 $13.80Class B East of 72nd Street Mean $1.16 $13.92

22 C 1968 18 510-652 $0.61 - $0.66 $0.64 $7.6823 C 1965 6 682-810 $0.72 - $0.73 $0.73 $8.7624 C 1963 12 400-850 $0.65 - $1.09 $0.82 $9.8425 C 1967 6 538-730 $0.62 - $0.83 $0.71 $8.5226 C 1967 20 660-780 $0.70 - $0.77 $0.74 $8.8827 C 1964 9 500-650 $0.68 - $0.81 $0.75 $9.0028 C 1967 24 500-700 $0.93 - $1.15 $1.05 $12.6029 C 1966 23 576-790 $0.61 - $0.71 $0.65 $7.8030 C 1937 14 697-944 $0.82 - $0.97 $0.88 $10.5631 C 1967 23 588-601 $0.75 - $0.77 $0.76 $9.1232 C 1960 26 491-506 $0.57 - $0.90 $0.86 $10.3233 C 1966 36 341-863 $0.67 - $1.04 $0.83 $9.9634 C 1966 55 405-715 $0.77 - $1.01 $0.86 $10.3235 C 1971 17 528 $0.88 $0.88 $10.5636 C 1964 12 500-580 $0.97 $1.03 $1.00 $12.0037 C 1965 22 528 $0.76 - $1.04 $0.90 $10.8038 C 1928 19 769-1,278 $0.57 - $0.67 $0.63 $7.5639 C 1916 14 720-1,455 $0.62 - $0.73 $0.68 $8.1640 C 1962 24 400-700 $0.64 - $1.06 $0.85 $10.2041 C 1966 17 552 $0.48 - $0.90 $0.81 $9.7242 C 1962 6 542-732 $0.74 - $0.88 $0.76 $9.1243 C 1952 10 550-575 $1.00 - $1.05 $1.03 $12.3644 C 1968 18 572-871 $0.62 - $0.74 $0.67 $8.04

Class C East of 72nd Street Mean $0.80 $9.6045 D 1966 8 560 $0.76 $0.76 $9.1246 D 1962 6 538-730 $0.60 - $0.73 $0.61 $7.3247 D 1926 18 585-965 $0.80 - $1.01 $0.92 $11.0448 D 1915 38 790-1,260 $0.56 - $0.77 $0.70 $8.40

Class D East of 72nd Street Mean $0.75 $9.0049 A 2007-2011 449 566-1,222 $0.98 - $1.25 $1.08 $12.9650 A 1993-1997 273 725-2,500 $0.94 - $1.28 $1.06 $12.7286 A 2003 150 690-1,426 $0.95 - $1.21 $1.03 $12.3687 A 2000-2003 250 845-1,475 $0.99 - $1.15 $1.08 $12.96

Class A West of 72nd Street Mean $1.06 $12.72

Summary of Apartment RentsAvg. Rent per SF



Record Building Year Number Unit Size MonthlyNumber Class Built of Units Range (SF) Rent Range Monthly Annually51 B 2009-2011 336 792-1,256 $0.84 -$0.95 $0.89 $10.6852 B 2001 100 826-1,538 $0.80 - $0.92 $0.88 $10.5653 B 1986 36 700-1,105 $0.61 - $0.81 $0.71 $8.5254 B 1989 18 615-820 $0.56 - $0.75 $0.69 $8.2855 B 1986 8 950-1,266 $0.73 - $0.89 $0.77 $9.2456 B 1976 248 600-1,350 $0.60 - $0.83 $0.69 $8.2857 B 1969 150 756-1,384 $0.69 - $0.95 $0.82 $9.8458 B 1999 480 905-1,328 $0.67 - $0.84 $0.74 $8.8859 B 2004-2009 282 784-1,259 $0.76 - $0.99 $0.87 $10.4460 B 1995-1997 324 910-1,205 $0.68 - $0.82 $0.74 $8.8879 B 1974 183 550-1,400 $0.56 - $0.95 $0.66 $7.9288 B 2005 156 770-1,515 $0.73 - $1.03 $0.87 $10.4489 B 2002 92 805-1,320 $0.89 - $1.12 $1.00 $12.0090 B 2011 275 745-1,245 $0.82 - $1.00 $0.91 $10.9291 B 2012-2013 132 870-1,420 $0.81 - $1.11 $1.03 $12.3692 B 2005-2006 224 776-1,422 $0.90 - $1.19 $1.04 $12.48

Class B West of 72nd Street Mean $0.83 $9.9661 C 1974 46 650-950 $0.66 - $0.73 $0.69 $8.2862 C 1965 25 468-1,033 $0.55 - $1.01 $0.78 $9.3663 C 1966 29 494-541 $0.88 - $1.11 $0.94 $11.2864 C 1966-1973 60 580-850 $0.76 - $0.98 $0.87 $10.4465 C 1985 24 670-1,040 $0.59 - $0.78 $0.70 $8.4066 C 1990 24 880-1,200 $0.61 - $0.96 $0.77 $9.2467 C 1968 30 500-750 $0.80 - $0.83 $0.81 $9.7268 C 1960 17 568-675 $0.74 - $0.90 $0.82 $9.8469 C 1965 63 590-1,100 $0.56 - $0.84 $0.67 $8.0470 C 1968 6 785-893 $0.52 - $0.62 $0.60 $7.2071 C 1980 44 567-872 $0.77 - $0.97 $0.87 $10.4472 C 1972 45 750-1,000 $0.64 - $0.74 $0.70 $8.4073 C 1981 30 578-578 $0.75 - $1.04 $0.82 $9.8474 C 1967 9 504-874 $0.57 - $0.81 $0.64 $7.6875 C 1984 69 654-785 $0.71 - $0.95 $0.79 $9.4876 C 1965 12 300-750 $0.84 - $1.17 $0.98 $11.7677 C 1967 485 700-1,100 $0.66 - $0.82 $0.74 $8.8878 C 1968-1988 400 831-1,550 $0.59 - $0.69 $0.64 $7.6880 C 1969-1970 248 800-1,960 $0.53 - $0.87 $0.66 $7.9281 C 1966 33 700-900 $0.65 - $0.66 $0.66 $7.9282 C 1993 71 649-1,000 $0.58 - $0.76 $0.70 $8.4083 C 1964-1999 29 552-960 $0.65 - $0.93 $0.81 $9.7284 C 1973 24 750-1,000 $0.63 - $0.70 $0.67 $8.0485 C 1965-1966 58 550-785 $0.77 - $0.88 $0.82 $9.8493 C 1967-1972 173 550-1,000 $0.74 - $0.97 $0.83 $9.9694 C 1970 48 413-1,115 $0.63 - $1.25 $0.89 $10.6895 C 1975 144 440-912 $0.82 - $1.19 $0.98 $11.76

Summary of Apartment Rents (Continued)Avg. Rent per SF



Record Building Year Number Unit Size MonthlyNumber Class Built of Units Range (SF) Rent Range Monthly Annually96 C 1972-1974 74 550-1,280 $0.63 - $0.82 $0.72 $8.6497 C 2003-2005 198 950-1,382 $0.70 - $0.82 $0.76 $9.1298 C 1991 45 740-1,100 $0.66 - $0.74 $0.70 $8.4099 C 1994-1997 249 889-1,314 $0.63 - $0.78 $0.71 $8.52100 C 1995-1997 192 920-1,200 $0.73 - $0.84 $0.78 $9.36101 C 1998-2000 240 1,050-1,261 $0.71 - $0.75 $0.73 $8.76102 C 2003-2008 558 716-1,104 $0.70 - $0.87 $0.78 $9.36

Class C West of 72nd Street Mean $0.77 $9.241 CBD 2012 42 660-1,050 $1.29 - $1.36 $1.33 $15.962 CBD 2010 27 556-962 $1.26 - $1.67 $1.50 $18.003 CBD 2011 24 538-668 $1.34 - $1.38 $1.36 $16.324 CBD 2013 17 764-1,412 $1.24 - $1.28 $1.26 $15.125 CBD 2011 82 600-985 $1.21 - $1.58 $1.48 $17.766 CBD 1900 15 721-1,906 $1.06 - $1.20 $1.13 $13.567 CBD 1914 74 408-2,030 $0.64 - $1.41 $0.95 $11.408 CBD 1916 96 715-1,335 $0.92 - $1.22 $1.01 $12.129 CBD 1906 147 584-2,381 $0.87 - $1.37 $1.18 $14.1610 CBD 1924 106 633-1,205 $0.91 - $1.23 $1.03 $12.3611 CBD 1913 48 753-1,189 $1.10 - $1.68 $1.45 $17.4012 CBD 1915 10 600-900 $0.39 - $0.98 $0.76 $9.1213 CBD 1908 12 710-920 $0.76 - $0.87 $0.81 $9.7214 CBD 1911 11 650-1,200 $0.57 - $1.12 $0.80 $9.6015 CBD 1900 12 1,350-1,950 $1.05 - $1.40 $1.21 $14.52

CBD Class Mean $1.15 $13.80103 LIHTC 2006 13 1,030 $0.52 $0.52 $6.24104 LIHTC 1972 200 750 $0.80 $0.80 $9.60105 LIHTC 1994 48 840 $0.72 $0.72 $8.64106 LIHTC 1972 60 830 $0.85 $0.85 $10.20107 LIHTC 2007 28 1,040 $0.41 $0.41 $4.92108 LIHTC 2011 28 1,080 $0.41 $0.41 $4.92109 LIHTC 1918 138 970 $0.77 $0.77 $9.24110 LIHTC 1910 19 760 $0.53 $0.53 $6.36111 LIHTC 1916 20 500 $0.68 $0.68 $8.16112 LIHTC 1890 12 660 $0.53 $0.53 $6.36113 LIHTC 1920 21 1,200 $0.46 $0.46 $5.52114 LIHTC 1998 8 1,030 $0.68 $0.68 $8.16115 LIHTC 1993 34 1,230 $0.82 $0.82 $9.84116 LIHTC 2006 36 1,260 $0.52 $0.52 $6.24117 LIHTC 1916 16 725 $0.73 $0.73 $8.76118 LIHTC 1996 19 1,100 $0.65 $0.65 $7.80119 LIHTC 1974-2009 28 800 $0.72 $0.72 $8.64120 LIHTC 1995 36 990 $0.60 $0.60 $7.20121 LIHTC 2010 34 1,200 $0.54 $0.54 $6.48122 LIHTC 2009 160 950 $0.68 $0.68 $8.16123 LIHTC 1942 37 650 $0.71 $0.71 $8.52

Income Restricted Class Mean $0.63 $7.56

Summary of Apartment Rents (Continued)Avg. Rent per SF

Note: LIHTC unit sizes and rents are averages based on information derived from Douglas County Assessor records




ApartmentBuilding Class

Monthly Annual Monthly AnnualEast of 72nd Street

Class A $1.32 $15.84 $1.20-$1.30 $14.40-$15.60

Class B $1.16 $13.92 $1.10-$1.20 $13.20-$14.40

Class C $0.80 $9.60 $0.75-$0.85 $9.00-$10.20

Class D $0.75 $9.00 $0.65-$.070 $7.80-$8.40

West of 72nd Street

Class A $1.06 $12.72 $1.00-$1.10 $12.00-$13.20

Class B $0.83 $9.96 $0.80-$0.90 $9.60-$10.80

Class C $0.77 $9.24 $0.70-$0.80 $8.40-$9.60

CBD $1.15 $13.80 $0.80-$1.20 $9.60-$14.40

LIHTC $0.63 $7.56 $0.50-$0.75 $6.00-$9.00

Indicated per SF MeanFrom Actual Rents Estimated per SF Rent

Of note, limited rental data for Class D properties west of 72nd Street exists. As such, this category was not analyzed in this section of the report. Apartment Vacancy Conclusions Vacancy for apartment properties throughout Douglas County was researched using an Omaha Metropolitan Area Market Survey from the spring of 2014, as well as an occupancy survey from ForRent.com conducted June of 2014. The county was divided geographically and vacancy percentages for each area were determined. My findings are summarized as follows:

VacancyArea Percentage

Northeast Omaha 4%Southeast Omaha 3%Northwest Omaha 3%Southwest Omaha 5%Total 4%


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Overall Capitalization Rate Analysis The following tables summarize the data that was gathered and analyzed in determining capitalization rates for the various classifications of apartment properties.

Record Building Sale Year Sale Price LoadedNumber Class Date Built Per Unit Cap Rate30 C Mar-11 1952 $32,000 9.34%25 C Jun-11 1963 $24,765 10.80%19 C Jul-11 1963 $35,455 9.47%11 C Sep-11 1978 $25,287 11.67%14 C Mar-12 1967 $30,250 11.22%13 C Jun-12 1968 $35,000 10.13%22 C Jul-12 1964 $28,542 13.78%16 C Aug-12 1967 $26,522 9.65%18 C Dec-12 1967 $42,917 9.24%10 C May-13 1966 $26,364 12.08%23 C Jun-13 1964 $27,083 10.33%24 C Jul-13 1950 $30,990 8.28%27 C Sep-13 1965 $39,167 9.94%26 C Nov-13 1969 $61,250 10.31%31 C Nov-13 1966 $28,824 9.66%

Class C East of 72nd Street Mean 10.39%

15 D Apr-11 1966 $18,750 12.84%17 D Feb-12 1966 $23,235 11.66%20 D Feb-12 1962 $21,667 13.27%28 D Apr-12 1915 $39,750 12.56%29 D Jun-12 1963 $25,625 11.19%

Class D East of 72nd Street Mean 12.30%37 A Jul-08 1998 $80,414 8.38%36 B Dec-07 1997-1999 $71,970 8.23%47 B Dec-07 1992-1993 $48,958 8.73%34 B Mar-10 1999-2000 $70,663 7.78%35 B Nov-10 1995-2007 $68,269 8.19%44 B Aug-12 1999 $61,806 8.79%45 B Apr-13 2009-2011 $84,269 7.84%

Class A/B West of 72nd Street Mean 8.28%39 C Aug-08 1969-1973 $38,690 8.30%46 C Jan-09 1972 $62,297 9.46%42 C Jun-09 1968 $33,333 11.44%43 C Jul-09 1971 $40,833 10.07%40 C Jan-11 1967 $38,889 8.99%41 C Dec-11 1968 $42,167 9.59%33 C Dec-11 1965 $37,688 11.28%32 C May-13 1985 $44,861 8.69%38 C May-13 1981 $45,521 8.27%

Class C West of 72nd Street Mean 9.57%

Summary of Apartment Capitalization Rates



Record Building Sale Year Sale Price LoadedNumber Class Date Built Per Unit Cap Rate6 CBD Apr-07 1910 $69,129 9.33%5 CBD Dec-07 1914 $97,581 8.18%7 CBD Jul-08 1805-1906 $115,226 8.39%4 CBD Dec-09 1902 $81,167 7.52%8 CBD May-10 1915 $104,138 8.69%3 CBD Mar-12 1915 $95,000 8.70%2 CBD Aug-13 1919 $61,538 6.42%9 CBD Jul-14 1909 $29,630 11.38%

CBD Class Mean 8.58%

Summary of Apartment Capitalization Rates (Continued)

Conclusions All of the sales used in this analysis occurred between April 2007 and July 2014. Of note, very limited sales data existed for the following apartment classes, and no indication of capitalization rate is given:

Class A – East of 72nd Street Class B – East of 72nd Street Class D – West of 72nd Street LIHTC

Given limited data for Class A and B apartment properties located west of 72nd Street, these two classes have been analyzed together. Considering all information, recommended “loaded” capitalization rates for the various apartment classes for ad valorem assessment purposes are as follows:

Apartment Recommended "Loaded"Class Capitalization RateEast of 72nd StreetClass A N/AClass B N/A

Class C 10.00%

Class D 12.00%

West of 72nd Street

Class A 8.25%

Class B 8.25%

Class C 9.50%Class D N/A

CBD 8.50%

LIHTC N/A



ADDENDA

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Assumptions and Limiting Conditions The following general assumptions and limiting conditions apply to the preparation of this report: 1. Responsible ownership and competent management are assumed. 2. All data used in this report has been obtained from sources believed to be reliable.

However, no warranty is given for its accuracy. 3. Possession of any part of this report or a copy thereof does not carry with it the right of

publication in whole or in part. 4. I, by reason of this report, will not be required to give further consultation, testimony, or

be in attendance in court with reference to the information presented unless arrangements have been previously made.

5. No responsibility is assumed for any business decisions of those who become aware of

this report. 6. This report was prepared for use by Douglas County, Nebraska for the purpose specified

herein. The report may not be used in any other manner without the appraiser’s prior written consent.



End of Report

benchmark and capitalization analysisoct 31, 2014 · morrissey county ass nam street, ebraska 68...

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