Your path only lists Visual Studio 11 and 12, it wants 14, which is Visual Studio 2015. If you install that, and remember to tick the box for Languages → C++ then it should work.
On my Python 3.5 install, the error message was a little more useful, and included the URL to get it from:
error: Microsoft Visual C++ 14.0 is required. Get it with “Microsoft Visual C++ Build Tools”: http://landinghub.visualstudio.com/visual-cpp-build-tools
New working link.
As suggested by Fire, you may also need to upgrade setuptools package for the error to disappear:
pip install --upgrade setuptools