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
Edit: New working link
Edit: As suggested by Lightfire228, you may also need to upgrade
setuptools package for the error to disappear: