Provides an updated CRE software market sizing and segmentation report, based off previous study. Includes all commercial / residential real estate (excluding homebuilding) along with capital markets and real estate funds management

1. CRE Software Due Diligence Report to GI Partners 1CONFIDENTIAL AND PROPRIETARY
Commercial Real Estate Software Market –
Sizing and Segmentation Report
May 5, 2015
www.frontlinepartners.net www.lionpointgroup.com

2. CRE Software Due Diligence Report to GI Partners 2CONFIDENTIAL AND PROPRIETARYCRE Software Due Diligence Report to GI Partners 2CONFIDENTIAL AND PROPRIETARYCRE Software Market Sizing & Segmentation Report 2CONFIDENTIAL AND PROPRIETARY
Table of Contents
CRE Software Market Sizing & Segmentation (Top Down Approach) 3
CRE Software Market Sizing (Bottom Up Approach)
 Reconciliation with other CRE Market Sizing Estimates
14
CRE Software Market Sizing and Segmentation Report

3. CRE Software Due Diligence Report to GI Partners 3CONFIDENTIAL AND PROPRIETARYCRE Software Due Diligence Report to GI Partners 3CONFIDENTIAL AND PROPRIETARYCRE Software Due Diligence Report to GI Partners 3CONFIDENTIAL AND PROPRIETARY 3Summary of RE Fund Manager Market Validation Interviews CONFIDENTIAL &PROPRIETARYCRE Software Due Diligence Report to GI Partners 3CONFIDENTIAL AND PROPRIETARYCRE Software Due Diligence Report to GI Partners 3CONFIDENTIAL AND PROPRIETARYCRE Software Due Diligence Report to GI Partners 3CONFIDENTIAL AND PROPRIETARY
CRE Software Market Sizing and Segmentation Analysis
(Top Down Approach)

4. CRE Software Due Diligence Report to GI Partners 4CONFIDENTIAL AND PROPRIETARYCRE Software Due Diligence Report to GI Partners 4CONFIDENTIAL AND PROPRIETARYCRE Software Market Sizing & Segmentation Report 4CONFIDENTIAL AND PROPRIETARY
Real Estate Market Segmentation
Residential
Development/
Construction
Owner/
Operators
Property
Services
Institutional
Investment
Corporate
Real Estate
Homebuilders
Multi-Family
Housing
Senior Housing
Student Housing
Military Housing
Master Plan
Communities
Land
Development
Commercial
Construction
Multi-Family
Construction
Specialty
Office
Retail
Industrial
Hospitality
Healthcare
Mixed Use
Property
Management
Facility
Management
Energy
Telco
Brokerage
Equity Investment
Opportunity Funds
Pension Funds
Debt Investment
Lenders / Banks
I-Banks
Insurance
Retail Users
Large Block
Industrial
Health
Higher Education
Government
Land Owners
Markets
Real Estate Market Segmentation
Six key market segments define the real estate industry

5. CRE Software Due Diligence Report to GI Partners 5CONFIDENTIAL AND PROPRIETARYCRE Software Due Diligence Report to GI Partners 5CONFIDENTIAL AND PROPRIETARYCRE Software Market Sizing & Segmentation Report 5CONFIDENTIAL AND PROPRIETARY
Real Estate Market Segmentation
Residential
Development/
Construction
Owner/
Operators
Property
Services
Institutional
Investment
Corporate
Real Estate
Homebuilders
Multi-Family
Housing
Senior Housing
Student Housing
Military Housing
Master Plan
Communities
Land
Development
Commercial
Construction
Multi-Family
Construction
Specialty
Office
Retail
Industrial
Hospitality
Healthcare
Mixed Use
Property
Management
Facility
Management
Energy
Telco
Brokerage
Equity Investment
Opportunity Funds
Pension Funds
Debt Investment
Lenders / Banks
I-Banks
Insurance
Retail Users
Large Block
Industrial
Health
Higher Education
Government
Land Owners
Markets
Real Estate Market Segmentation
We are predominantly focusing on three key sub-segments: Owner/Operator - Residential
(excluding homebuilding), Owner-Operator - Commercial; Institutional Investment – Equity
(funds / institutional investors)
Focus of our Report is on these three segments (excluding homebuilding / CRE Lending / Servicing)

6. CRE Software Due Diligence Report to GI Partners 6CONFIDENTIAL AND PROPRIETARYCRE Software Due Diligence Report to GI Partners 6CONFIDENTIAL AND PROPRIETARYCRE Software Market Sizing & Segmentation Report 6CONFIDENTIAL AND PROPRIETARY
CRE Real Estate Market Sizing
North America and Europe represent 80 percent of the market expenditure with strong
spend in residential, owner/operator, and institutional investment
Global Distribution of Real Estate Expenditure
Market Expenditure (as a percent)
by Geographic Region
Market Expenditure (as a percent)
by Geographic Region and Market Segment
North
America Europe
Asia/
Pacific
Latin
America
Owner Operator - Residential 30% 27% 35% 30%
Owner Operator - Commercial 25% 30% 25% 25%
Investment Management 20% 15% 12% 10%
Corporate 12% 10% 10% 15%
Development/Construction 6% 10% 13% 15%
Property Services 7% 8% 5% 5%
Total 100% 100% 100% 100%
North America
48%
Europe
32%
Asia/Pacific
17%
Latin America
3%

7. CRE Software Due Diligence Report to GI Partners 7CONFIDENTIAL AND PROPRIETARYCRE Software Due Diligence Report to GI Partners 7CONFIDENTIAL AND PROPRIETARYCRE Software Market Sizing & Segmentation Report 7CONFIDENTIAL AND PROPRIETARY
CRE Software Market Sizing / US Spend Potential
In 2015, an estimated $19.9 billion was spent on software and services in the real estate
market with slightly more than half of that spend ($11.1B) occurring in the U.S.
North America
48%
Europe
32%
Asia/Pacific
17%
Latin America
3%
Global Real Estate Technology Expenditure
North America 0.8%
Europe 0.6%
Asia/Pacific 0.5%
Latin America 0.2%
Real Estate Technology Spend
as a Percentage of Revenue
Real Estate US Technology Spend
as a Percentage of Revenue
Real Estate Technology Spend
By Geographic Region
Market
Segment
2015 Technology
Expenditure ($,BN)
Expenditure
Propensity (1)
Owner
Operator
(Commercial)
$3.18
Institutional
Investment
(Equity)-(2)
$3.82
Leading
Buyer
Leading
Buyer
Property
Services
$0.81
On-time
Buyer
Corporate
Owner
Operator
(Residential)
$1.35
Lagging
Buyer
Development
/Construction
$1.39
On-Time
Buyer
$0.56
Lagging
Buyer
(1) Expenditure Propensity used to slope relative technology spend by segment,
(2) Institutional Investment allocated 65% - Equity, 35% Debt/Bonds

8. CRE Software Due Diligence Report to GI Partners 8CONFIDENTIAL AND PROPRIETARYCRE Software Due Diligence Report to GI Partners 8CONFIDENTIAL AND PROPRIETARYCRE Software Market Sizing & Segmentation Report 8CONFIDENTIAL AND PROPRIETARY
Customer Market Segmentation
Select sub-segments of the institutional investment, owner/operator, and corporate real
estate markets are most attracted to real estate ownership, management and investment
solution set (s)
Real Estate Market
Segmentation Drilldown
Owner/Operator
(Resi/Commercial)
Private Public
Corporate
Retail Users Large Block Industrial Health Higher Ed Government Land Owners
Institutional Investment
Lender/Servicer Investor
Debt Derivatives Mezzanine
Fixed Income or
Equity Securities
Real Estate
Primary
Market
Secondary
Market
Mortgages Bonds
Lines of
Credit
Direct Indirect
Commercial
Non-
Commercial
OfficeMulti-FamilyRetail Hospitality Industrial
Residential
Owner/
operator

9. CRE Software Due Diligence Report to GI Partners 9CONFIDENTIAL AND PROPRIETARYCRE Software Due Diligence Report to GI Partners 9CONFIDENTIAL AND PROPRIETARYCRE Software Market Sizing & Segmentation Report 9CONFIDENTIAL AND PROPRIETARY
Market Segmentation Description
Each player in the market segment provides unique services to the market place
Market Segmentation
Key Functional Description
Primary Market
Segmentation
Corporate
Real Estate
Owner/
Operator
Institutional
Investment
Secondary
Segmentation
Lender/ Servicer
(Debt)
Investor
(Equity)
Private
Public
Build, occupy, and manage buildings
to meet specific business requirements
Key Real Estate
Market Description
Originate and lends money to real estate
investors and developers. Some lenders service
and other sell that right.
Invest direct / pooled capital into real estate
through funds or JVs. The
capital comes from pension funds,
institutional, and private investors.
Invest pooled capital into real estate through
the purchase of assets. The capital comes from
private equity and institutional investors.
Invest pooled capital into real estate through
the purchase of assets. The capital comes from
public markets and institutional investors.

10. CRE Software Due Diligence Report to GI Partners 10CONFIDENTIAL AND PROPRIETARYCRE Software Due Diligence Report to GI Partners 10CONFIDENTIAL AND PROPRIETARYCRE Software Market Sizing & Segmentation Report 10CONFIDENTIAL AND PROPRIETARY
Segmentation Trends Analysis
With the increase in available capital and market recovery, many players are positioning to
take advantage of the market recovery / upswing and investors need for alternative
investments.
Market Segmentation
Trends Analysis
Primary Market
Segmentation
Corporate
Real Estate
Owner/
Operator
Institutional
Investment
Secondary
Segmentation
Lender/ Servicer
(Debt)
Investor –
Direct/ Funds
(Equity)
Private
Public
Large real estate holders becoming targets
for acquisition to release capital tied up in
asset base
Key
Trends
Creating more flexible finance vehicles
Dramatic growth in institutional real estate,
and fund managers, seeking geographic
expansion / cross-border investments
Moving towards a funds management model
and getting closer to institutional investors
Mergers of public REITs, geographic
expansion, usage of
joint venture funding with institutional
investors
Nominal
Growth
Growth
Trend
Nominal
Growth
High
Growth
High
Growth
Nominal
Growth

11. CRE Software Due Diligence Report to GI Partners 11CONFIDENTIAL AND PROPRIETARYCRE Software Due Diligence Report to GI Partners 11CONFIDENTIAL AND PROPRIETARYCRE Software Market Sizing & Segmentation Report 11CONFIDENTIAL AND PROPRIETARY
Examples of Market Players
Due to fund / JV ownership structures, a number of large institutional investors (in form of investment
managers / funds, or via direct investments) also play a critical role in the asset and investment/ fund
management functions for the ownership of commercial real estate.
Market Player - Segmentation and Size
Primary Market
Segmentation
Corporate
Real Estate
Owner/
Operator
Investment
Management
Secondary
Segmentation
Institutional
Investor
(Equity)
Private
Public
Wal-Mart, Kroger,
Washington Mutual,
Safeway, Bank of
America, US Postal
Service
Tier 1 Market
Player Players
ING, Prudential, TIAA-CREF,
Principal Real Estate
Hines REIT, Inc.
Behringer Harvard REIT I,
Inc.
Simon Property, ProLogis,
Public Storage, General
Growth, Boston Properties,
Ventas
Universities, School
Districts, State
Government Departments
Tier 2 Market
Player Players
AEW Capital, Colony Capital,
Apollo Real Estate, Starwood
Capital, Beacon Capital
Dividend Capital Trust, Inc.
G REIT, Inc.
St Joe, Camden Property,
Essex, BRE Properties,
Brandywine
1000’s of Corporations
Tier 3 Market
Player Players
Hart Realty Group, Campbell
Group, Rothschild Realty,
TimberVest
Desert Capital REIT, Inc.,
DiamondRock Hospitality ,
Company
Winthrop, Lodgian,
Associated Estates, RedLion
Hotels, American Land Lease
Lender / Servicer
(Debt)
Wachova,
Wells Fargo,
Prudential
Guggenheim, Northwestern
Mutual, TIAA-CREF
NorthMarq Capital, NCB,
PPM Finance

12. CRE Software Due Diligence Report to GI Partners 12CONFIDENTIAL AND PROPRIETARYCRE Software Due Diligence Report to GI Partners 12CONFIDENTIAL AND PROPRIETARYCRE Software Market Sizing & Segmentation Report 12CONFIDENTIAL AND PROPRIETARY
Opportunity Market Size – US Market IT Spend Potential
43% of the total US technology expenditure for CRE software in targeted segments comes from public
REITs, while institutional investment equity investors and private owner/operators collectively comprise an
additional 43% of Target Market in the U.S.
Market Segmentation Sizing – US Applied Example
Primary Market
Segmentation
Retail Users, Large Block,
Industrial, Health, Higher
Education, Government,
Land Owners
Corporate
Real Estate
Owner/
Operator
Institutional
Investment
Secondary
Segmentation
Lender /Servicer
(Debt)
Investor (Equity)
Private
Public
Market Players and
Magic Targets
Banks, Life Insurance, Finance,
CMBS/CDO Issuers, REITS
Opportunity Funds, I-Banks
Insurance, Pension Funds
Private REITS, Private Equity,
REOCs
Public (Listed) REITS
Percentage
of Market
35%
65%
35%
65%
100%
US Market IT
Spend Potential
$0.73BN
$1.35BN
$2.45BN
$4.55BN
$1.38BN
$295 $812 $177 ($,BN) 2015 US Market Size
$2.08 $7.00 $1.38 ($,BN) 2015 US IT Spend
Note: Owner Operators include Residential / Commercial;
Broken out as follows:
Residential: $443.1B US Market Size, $3.82B US IT Spend
Commercial: $369.3B US Market Size, $3.19B US IT Spend

13. CRE Software Due Diligence Report to GI Partners 13CONFIDENTIAL AND PROPRIETARYCRE Software Due Diligence Report to GI Partners 13CONFIDENTIAL AND PROPRIETARYCRE Software Market Sizing & Segmentation Report 13CONFIDENTIAL AND PROPRIETARY
U.S. Market Player Segmentation and Size
The US markets are relatively concentrated at top two tiers, which accounts for more than
75 percent of the total technology potential spend.
U.S. Market Player - Segmentation and Size
Note: (1) The opportunity fit represents the high value functions for each market player which represents more than
90 percent of the overall functional value, so the technology spend has not been adjusted or weighted.
Primary Market
Segmentation
Corporate
Real Estate
Secondary
Segmentation
Investor –
Direct/ Fund
(Equity) -65%
Private – 35%
Public – 65%
Sq FT >10M
Tier 1 Market
Player Attributes
>$50BN Invested in
Real Estate Assets
>$2BN Invested in
Real Estate Assets
Market Cap
>$5BN
Sq FT 1M - <10M
Tier 2 Market
Player Attributes
$5BN - <$50BN
Invested in Real
Estate Assets
$0.5BN - <$2BN
Invested in Real Estate
Assets
Market Cap
$0.50BN - <$5BN
Sq FT < 1M
Tier 3 Market
Player Attributes
< $5BN Invested in
Real Estate Assets
< $2BN Invested in
Real Estate Assets
Market Cap
< $0.50BN
Lender/Servicing
(Debt)-35%
Annual Originations
> than $5BN
Annual Originations
$1BN - > $5BN
Annual Originations
< $1BN
Owner/
Operator
Institutional
Investment
Primary / Secondary Spend Potential
TIER 1 TOTAL $3.60 BN TIER 2 TOTAL $2.72BN TIER 3 TOTAL $2.03BN
50%
$690
% of
Mark’t
($MM)
10%
$135
40%
$980
20%
$910
10%
$73
30%
$414
% of
Market
($MM)
53%
$715
25%
$613
50%
$2,275
70%
$511
20%
$276
% of
Market
($MM)
37%
$500
35%
$857
30%
$1,365
20%
$146

14. CRE Software Due Diligence Report to GI Partners 14CONFIDENTIAL AND PROPRIETARYCRE Software Due Diligence Report to GI Partners 14CONFIDENTIAL AND PROPRIETARYCRE Software Due Diligence Report to GI Partners 14CONFIDENTIAL AND PROPRIETARY 14Summary of RE Fund Manager Market Validation Interviews CONFIDENTIAL &PROPRIETARYCRE Software Due Diligence Report to GI Partners 14CONFIDENTIAL AND PROPRIETARYCRE Software Due Diligence Report to GI Partners 14CONFIDENTIAL AND PROPRIETARYCRE Software Due Diligence Report to GI Partners 14CONFIDENTIAL AND PROPRIETARY
CRE Software Market Sizing and Segmentation Analysis
(Bottoms Up Approach)
• US Commercial Real Estate Inventory – driven off CoStar US inventory

15. CRE Software Due Diligence Report to GI Partners 15CONFIDENTIAL AND PROPRIETARYCRE Software Due Diligence Report to GI Partners 15CONFIDENTIAL AND PROPRIETARYCRE Software Market Sizing & Segmentation Report 15CONFIDENTIAL AND PROPRIETARY
Market Sizing / Segmentation - US National Office
Breakout by building class (1)
Class A 17,090 3,266,252,671 191,120 12.3% $28.68
Class B 193,114 4,867,596,268 25,206 11.5% $20.26
Class C 293,448 2,333,491,683 7,952 8.0% $16.55
Grand Totals 503,652 10,467,540,622 20,783 10.5% $22.65
Market Segment # Bldgs.
Total RBA
(SF)
Avg. Bldg. Size
(SF)
Vacancy Rate
(%)
Avg. Rent/SF/YR
CBD 42,188 2,427,769,004 57,546 10.2% $29.03
Suburban 461,464 8,039,591,618 17,422 11.2% $21.22
Grand Totals 503,652 10,467,340,622 20,783 10.9% $22.65
Market Segment # Bldgs.
Total RBA
(SF)
Avg. Bldg. Size
(SF)
Vacancy Rate
(%)
Avg. Rent/SF/YR
US National Office Market – Breakout by CBD vs Suburban
(1) Source: Co Star Group National Office Report – Year End 2014

16. CRE Software Due Diligence Report to GI Partners 16CONFIDENTIAL AND PROPRIETARYCRE Software Due Diligence Report to GI Partners 16CONFIDENTIAL AND PROPRIETARYCRE Software Market Sizing & Segmentation Report 16CONFIDENTIAL AND PROPRIETARY
Market Sizing and Segmentation - US National Retail Market
Breakout by product type (1)
General Retail 873,991 6,290,193,298 7,197 4.2% $15.83
Mall 1,353 1,092,392,766 807,386 5.7% $16.20
Power Center 1,981 875,333,303 441,864 4.7% $16.48
Shopping Center 93,733 4,225,532,816 45,080 9.3% $14.19
Market Segment #Bldgs.
Total RBA
(SF)
Avg. Bldg. Size
(SF)
Vacancy Rate
(%)
Avg. Rent/SF/YR
Specialty Center 426 93,191,643 218,760 6.2% $15.63
Grand Totals 971,484 12,576,643,826 12,946 6.1% $14.90
(1) Source: Costar Group National Retail Report – Year End 2014

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Market Sizing and Segmentation - US National Industrial Market
Flex 90,389 2,268,784,744 25,100 9.9% $11.05
Warehouse 532,757 18,877,445,127 35,433 6.9% $4.80
Grand Totals 623,146 21,146,229,871 33,934 7.2% $5.50
Market Segment #Bldgs.
Total RBA
(SF)
Avg. Bldg. Size
(SF)
Vacancy Rate
(%)
Avg. Rent/SF/YR
(1) Source: Costar Group National Industry Report - Year End 2014
Breakout by product type (1)

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IT Spend Potential – US Commercial Real Estate Estimate
Office
Retail
Industry
Total
Market Segment
503,652
971,484
623,146
3,098,282
#Bldgs.
1,467,340,622
12,576,643,826
21,146,229,871
44,190,214,319
Total RBA
(SF)
$22.65
$14.90
$5.50
$12.24
Avg Rent/SF/YR
$237,085
$187,392
$116,304
$540,781
Gross Potential
Annual Revenues
($MM)
Adjustments (Conservative Reductions)
100% Class C Office 293,448 2,333,491,683 $16.55
100% General Retail 873,991 6,290,193,298 $15.53
Net Potential / Addressable Market - US Commercial Real Estate
< 38,619>
< 99,574>
$ 402,588
Assumed IT Spend (Software Only – US Market) – 0.8% of Revenues $ 3.221 B
Calculated IT Spend (Software Only – US Market) – 0.8% of Revenues
Nominal Difference between two FrontLine approaches (Top Down,
Bottom Up)
$ 3.180 B