09 4 qtr office review

CommerCe real estate solutions | FourtH Quarter - 2009 | office market review

OFFICE MARKET INDICATORS

Change Since

Current 4Q09 4Q08

Vacancy 20.79%

Lease Rates (FSG) $2.10

Net Absorption * (80,478)

Construction N/A

*The arrows are trend indicators over the specified time period, and do not represent a positive or negative value. (e.g., absorption could be negative but still represent a positive trend over a specified period.)

AT A GLANCE

Overall vacancy rates showed an increase from 20.50% in 3rd quarter

2009 to the current rate of 20.79% at the end of 4th quarter 2009. This

rate is escalating from a year ago when rates were around 16.7%.

Average rental rates continue to show lower levels than we witnessed

a year ago at a current rate of $2.10 per square foot per month psf/

mo (FSG). This is also a drop from last quarter rates of $2.12 psf/

mo (FSG). Modified Gross (MG) reported at $1.60 psf/mo and Net

(NNN) rates averaged at $1.26 psf/mo

Economic outlook is still going to be a growing concern for both

landlords and tenants as tighter credit terms, rising inflation and a

weak job market continue to affect the Las Vegas area.

As the cold weather approaches with longer

winter nights, the commercial real estate storm

is also gathering strength. According to the

Mortgage Bankers Association, “The dollar value

of loans dropped 56% for office properties.”

Real Capital Analytic’s also stated, “The credit

crisis has driven $138 billion worth of U.S.

commercial properties into default, foreclosure

or debt restructuring.” Close to 200 small banks

across the U.S will close in the coming months

and larger banks will continue to see trouble

ahead as some $1.8 trillion of commercial real

estate debt is being held on banks books. Jon

D Greenlee, associate director at the Division of

Banking Supervision and Regulation released

that “In addition to losses caused by declining

property cash flows and deteriorating conditions

for construction loans, losses will also be boosted

by the depreciating collateral value underlying

those $500 billion maturing commercial loans.

The losses will place continued pressure on

banks earnings, especially those of smaller

regional and community banks that have high

concentrations of CRE loans.”

commercial real estatestorm gathers strength

Las Vegas, Nevada

Office Overview4th QTR Report 2009


Commercial Real Estate Storm Gathers Strength (continued)

The Feds are working on a solution and in July they allowed “investors participating in its Term Asset-Backed Securities Loan Facility (TALF) to purchase existing securities backed by loans the government will cover for apartment complexes, office buildings, retail shopping centers and other commercial property.” Greenlee stated. Still Lenders losses are casting a shadow over lending and they are still reluctant to extend credit as property values fall and unemployment rises. Developers have also now halted any new development based on the current fundamentals of limited to / no financing, high vacancy and greatly reduced tenant demand.

National unemployment rates reached a 27 year high at 10.2%, roughly 15.7 million unemployed workers. The Las Vegas economy also continues to be impacted by downturns and high employment rates in all major sectors, including gaming, construction, financial and real estate. The recession will most likely be a “jobless recovery.” Since World War II there have been a total of 11 recessions and in the most recent recessions before the 2007 recession, job growth lagged long after the recession. In fact it took several years for the unemployment rate to return back to prerecession levels. Employment growth is critical to future economic growth and the return to a healthy commercial market; which may take several years to accomplish. It is important to note that Las Vegas has weathered a number of economic downturns and has responded with great enthusiasm. This down cycle will likely respond similarly; only time will tell!

Office Market

Overview

By the End of 2009, the Las Vegas commercial office market continued to report upward movement in vacancies, while overall demand slowed. The latest market performance was impacted by several factors, including economic weakness locally and nationally, as well as volatility in the global financial markets. Professional office tenants have been impacted by a contracting economy, continued declines in housing values, raising unemployment and ultimately impacting consumer spending and pullback within the tourism industry.

Vacancies

Valley-wide average vacancies continued to escalate as the supply-side of the equation, combined with declining demand and contraction in real estate related industries, continues to impact the competitive landscape. The office market vacancies reached 20.79 % at the end of the year, which was higher than the 20.50 percent reported one quarter ago (Q3 2009) and 3.8 points higher than the 16.7 percent reported one year ago. Available sublease space dropped slightly in 4th quarter with currently availability at 500,407 sf (1.14% of the total market) of available sublease space. Office submarkets reporting the highest level of availability included emerging submarkets with the newest supply of buildings such as the Northwest (38.03%), Airport (23.39%), and Southwest (27.0%) submarkets. The high vacancy rates in these submarkets are a result of newer buildings that have come on line with little or no pre-leasing activity, combined with lease concessions, defaults and downsizing which is causing vacancy to rise. Below-market-average vacancies were noted in the Downtown (10.12%), Central East (17.43%), and Central West (14.92 %). Net abosorbption for the quarter was still in the negatives at -80,478. This ia an imporovement from the past quarters. Overall vancancy for 2009 totaled to -1,201,658.


Pricing (Average Asking Rents)

The latest performance contributed to price erosion as landlords and building owners compete for a limited number of users. By 4th quarter 2009, the market reported average asking rents of $2.10 sf/FSG, a drop from the $2.12 sf/FSG from 3rd quarter 2009. Elevated tenant improvement allowances and free rent concessions are impacting returns for landlords and ultimately lenders. We expect this trend to continue throughout the majority of 2009 as inventory levels remain elevated.

Average rents in the Top Tier Class A segment reached $3.29 sf/FSG with newer, high-end buildings targeting a price point well above the average. Lower Tier Class A buildings rates were slightly lower at $2.74 sf / FSG. Also above the valley average was Top Tier Class B buildings that reported average asking rents of $2.50 sf/FSG. However the Lower Tier Class B buildings were lower than the average at $1.89 sf/FSG. Pricing for Class C properties has average rates around $1.86 sf/FSG (Top Tier C) and $1.65 sf/FSG (Lower Tier C). Downtown ($2.33 sf/FSG), Southeast ($2.31 sf/FSG) and Southwest ($2.57 sf/FSG) submarkets show the highest lease rates, while Central West ($1.74 sf/FSG), Northwest ($1.81 sf/FSG) and Central East ($1.73 sf/FSG) submarkets show the lowest average lease rates. Please Note: the average asking rates do not take inconsideration free rent & rental concession.

* Full Service Gross (FSG): A lease requiring the owner to pay all operating expenses, such as cleaning, maintenance and repairs, utilities, insurance and ad valorem taxes.

Outlook

The market will continue to be impacted by cautious consumer/companies activity, causing vacancies to remain elevated and most likely continue to increase. Near-term contraction within the employment market will also have an impact on office market demand. The effect of extended lease up periods and softening economic conditions will contribute to increased repossession activity by lenders that will result in further price adjustments. The coming year will be more critical to see if the economy can continue with out the hand holding of government help in the form of stimulus spending such as cash-for-cluckers, federal programs to keep interest rates low and new home buyer credits. Expect job growth to remain sluggish and remain that way for at least 18 to 24 months before we start to see true recovery. The office market is like a big ship, years of analysis shows that once the market starts on a downward cycle it takes years to turn it around.

Performance by Product Type & Classifications

The market will continue to be impacted by cautious consumer/companies activity, causing vacancies to remain elevated While broader market trends are clear, by providing basic break out of the office product types, it is also important to understand the performance of detailed key sectors within the commercial office market. At Commerce, we know the importance of updating the classification of buildings as the market grows older. We have taken the steps this quarter to start with a new classification process. As a team, we have separated and reclassified all office buildings in a “Tier” format. The Tier format will separate out classes in a Top Tier Class and Lower Tier Class. This will help our clients to better understand, for example, the number of “real” Class A buildings that the Las Vegas area has that would qualify as Class A in other markets such as Los Angels and New York. While also taking a look at lower tier Class A buildings, buildings that is what the Las Vegas market considers Class A, but would not qualify as Class A in Los Angeles or New York.

The following is the Commerce Real Estate Solutions 4th Quarter Market report which highlights market conditions by building type and classification.


no. of existing under Const. Planned net space Gross space new subBldgs. sF sF sF sF rate occupied leased supply lease low High W avg.

NorthwestClass tta 1 186,300 - - 186,300 100.00% - - 186,300 - $2.50 $2.65 $3.00Class lta 1 126,915 - - 88,976 70.11% (6,490) - - - $2.40 $2.65 $2.53Class ttB 33 912,187 - - 314,017 34.42% (21,802) 1,330 40,260 - $1.20 $3.25 $2.02Class ltB 16 569,428 - - 198,602 34.88% 17,327 17,327 - - $1.55 $2.15 $1.92Class ttC 56 1,075,020 - - 303,387 28.22% (4,519) 15,381 - 1,375 $1.50 $1.50 $1.50Class ltC - - - - - 0.00% - - - -total 107 2,869,850 - - 1,091,282 38.03% (15,484) 34,038 226,560 1,375 $1.20 $3.25 $1.81

DowntownClass tta 3 655,254 - - 32,553 4.97% 434 434 - - $3.00 $3.00 $3.00Class lta 1 103,951 - - - 0.00% - - - - Class ttB - - - - - 0.00% - - - - Class ltB 10 581,117 - - 136,208 23.44% 8,444 8,444 - 11,395 $1.00 $2.90 $2.05Class ttC 5 343,032 - - 22,624 6.60% 1,312 1,312 - - $2.60 $2.60 $2.60Class ltC 46 860,417 - - 66,142 7.69% - - - - $1.95 $1.95 $1.95total 65 2,543,771 - - 257,527 10.12% 10,190 10,190 - 11,395 $1.00 $3.00 $2.33

central eastClass tta 5 995,120 - - 122,297 12.29% (45,901) - - 20,397 $3.65 $3.85 $3.58Class lta 5 387,590 - - 86,644 22.35% (4,615) 2,000 - 27,885 $2.85 $3.25 $2.98Class ttB - - - - - 0.00% - - - - Class ltB 6 529,138 - - 172,896 32.68% (10,867) 2,062 - - $1.00 $1.80 $1.34Class ttC 75 2,625,301 - - 478,295 18.22% 1,663 19,029 - - $1.00 $1.85 $1.35Class ltC 58 1,273,364 - - 152,877 12.01% (7,900) 17,161 - 4,500 $0.99 $1.70 $1.35total 149 5,810,513 - - 1,013,009 17.43% (67,620) 40,252 - 52,782 $0.99 $3.85 $1.73

central westClass tta - - - - - 0.00% - - - - Class lta 1 157,624 - - 10,534 6.68% (4,215) - - - $2.80 $2.90 $2.85Class ttB - - - - - 0.00% - - - - Class ltB 44 2,218,624 - - 295,439 13.32% (10,234) 19,426 - 38,763 $1.00 $2.25 $1.75Class ttC 125 3,216,897 - - 525,735 16.34% (24,245) 40,423 - 11,160 $1.25 $2.00 $1.56Class ltC 52 780,205 - - 119,198 15.28% (10,675) 5,914 - - $1.00 $2.70 $1.68total 222 6,373,350 - - 950,906 14.92% (49,369) 65,763 - 49,923 $1.00 $2.90 $1.74

westClass tta 1 143,633 - - 62,935 43.82% (30,910) - - - Class lta 3 293,255 - - 71,572 24.41% 6,113 6,113 - - $1.95 $2.35 $2.22Class ttB 37 1,951,832 - - 332,199 17.02% 13,690 29,244 - 50,490 $1.00 $2.70 $1.88Class ltB 121 2,441,269 - - 282,710 11.58% (7,485) 13,588 - 26,197 $1.00 $2.25 $1.60Class ttC 179 2,536,967 - - 561,498 22.13% (70,733) 12,310 - 31,741 $1.00 $5.00 $2.70Class ltC 11 245,699 - - 58,203 23.69% 3,950 8,200 - - $1.05 $2.25 $1.67total 352 7,612,655 - - 1,369,117 17.98% (85,375) 69,455 - 108,428 $1.00 $5.00 $1.91

SouthwestClass tta - - - - - 0.00% - - - - Class lta 2 336,140 - - 274,214 81.58% - - - - $2.70 $3.40 $3.09Class ttB 28 1,595,947 - - 513,856 32.20% (1,599) 1,140 152,160 38,149 $2.40 $2.45 $2.40Class ltB 102 1,797,248 - - 323,658 18.01% 9,117 10,072 - 33,630 $1.91 $2.50 $2.21Class ttC 68 1,000,379 - - 158,703 15.86% 10,964 13,840 - 8,093 $1.40 $2.85 $1.96Class ltC 6 113,662 - - 37,389 32.89% (3,363) - - - $1.10 $3.10 $1.98total 206 4,843,376 - - 1,307,820 27.00% 15,119 25,052 152,160 79,872 $1.10 $3.40 $2.57

airportClass tta - - - - - 0.00% - - - - Class lta 5 433,464 - - 145,115 33.48% 39,380 39,380 - 82,637 $2.00 $2.85 $2.35Class ttB 17 1,157,337 - - 276,958 23.93% - - - - $2.35 $3.55 $2.75Class ltB 35 1,675,945 - - 309,034 18.44% (17,227) 1,871 - 46,175 $1.35 $2.35 $1.94Class ttC 153 1,769,918 - - 446,894 25.25% 13,817 31,717 - 6,900 $1.15 $3.10 $1.91Class ltC - - - - - 0.00% - - - - total 210 5,036,664 - - 1,178,001 23.39% 35,970 72,968 - 135,712 $1.15 $3.55 $2.36

SoutheastClass tta - - - - - 0.00% - - - - Class lta 4 323,132 - - 168,534 52.16% - - - - $2.95 $2.95 $2.95Class ttB 23 1,238,237 - - 315,916 25.51% 26,427 33,033 - 24,900 $2.95 $2.95 $2.95Class ltB 40 1,220,033 - - 240,469 19.71% (2,249) 3,849 - - $1.69 $2.95 $2.32Class ttC 312 4,221,732 - - 869,677 20.60% 45,644 62,185 - 16,669 $1.05 $2.00 $1.45Class ltC - - - - - 0.00% - - - - total 379 7,003,134 - - 1,594,596 22.77% 69,822 99,067 - 41,569 $1.05 $2.95 $2.31

NorthClass tta - - - - - 0.00% - - - - Class lta - - - - - 0.00% - - - - Class ttB - - - - - 0.00% - - - - Class ltB 4 133,918 - - 62,287 46.51% - - - - $1.60 $2.65 $2.30Class ttC 70 1,431,706 - - 313,972 21.93% 6,269 36,418 - 19,351 $1.00 $2.65 $1.69Class ltC 19 316,522 - - 4,000 1.26% - - - - $2.45 $2.75 $2.58total 93 1,882,146 - - 380,259 20.20% 6,269 36,418 - 19,351

Las vegas totalClass tta 10 1,980,307 - - 404,085 20.41% (76,377) 434 186,300 20,397 $2.50 $3.85 $3.19Class lta 22 2,162,071 - - 845,589 39.11% 30,173 47,493 - 110,522 $1.95 $3.40 $2.71Class ttB 138 6,855,540 - - 1,752,946 25.57% 16,716 64,747 192,420 113,539 $1.00 $3.55 $2.40Class ltB 378 11,166,720 - - 2,021,303 18.10% (13,174) 76,639 - 156,160 $1.00 $2.95 $1.94Class ttC 1,043 18,220,952 - - 3,680,785 20.20% (19,828) 232,615 - 95,289 $1.00 $5.00 $1.86Class ltC 192 3,589,869 - - 437,809 12.20% (17,988) 31,275 - 4,500 $0.99 $3.10 $1.87total 1,783 43,975,459 - - 9,142,517 20.79% (80,478) 453,203 378,720 500,407 $0.99 $5.00 $2.10

Vacancy asking rent (FsG)inventory vacancy Demand & Supply Pricing

commerce / cushman & wakefieldlas Vegas office market report Q4 2009

Professional Buildings


Medical Office Market

The medical sector of the office market continues to perform slightly better than the balance of the market in 2009. Vacancies within the segment had a slight rise this quarter from 14.1% 3rd quarter 2009 to 14.8 % 4th quarter 2009.

Las Vegas, Nevada | Commerce Fourth Quarter 2009

Medical Office Market

The medical sector of the office market continues to perform slightly better than the balance of the market in 2009. Vacancies within the segment had a slight rise this quarter from 14.1% 3rd quarter 2009 to 14.8 % 4th quarter 2009.

Medical Office Submarket - Rates

$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

FSG Rate $1.65 $0.00 $1.73 $1.76 $0.00 $0.00 $0.00 $2.17 $0.00 $1.83

M G Rate $1.81 $0.00 $1.38 $1.66 $1.81 $2.05 $1.53 $1.52 $0.00 $1.68

NNN Rate $1.46 $0.00 $1.35 $1.62 $1.73 $1.76 $1.25 $1.57 $1.37 $1.51

Northwest Downtown Central East Central West West Southwest Airport Southeast North Las Vegas

Area Total

no. of existing under Const. Planned net space Gross space new subBldgs. sF sF sF sF rate occupied leased supply lease low High W avg.

northwest 77 2,130,771 - - 239,790 11.25% 11,205 14,282 55,064 4,076 $1.65 $1.81 $1.65Downtown 2 29,985 - - 0.00% - - - - Central east 63 2,024,755 - - 300,276 14.83% 21,956 35,816 - 8,688 $1.60 $1.75 $1.73Central West 67 1,720,882 - - 81,858 4.76% (6,805) - - 21,062 $1.40 $2.00 $1.76West 45 1,455,064 262,919 18.07% 22,251 42,100 175,591 - $1.59 $2.85 $1.76southwest 53 1,576,427 341,994 21.69% (8,964) - - - $1.70 $2.60 $2.15airport 8 82,043 - 16,264 19.82% - - - - $1.55 $2.15 $1.69southeast 87 1,893,365 - - 435,071 22.98% 10,114 12,004 - 24,973 $1.75 $3.00 $2.26north 14 487,626 - - 17,410 3.57% 2,100 4,800 - - $1.55 $2.55 $1.90

total 416 11,400,918 - - 1,695,582 14.87% 51,857 109,002 230,655 58,799 $1.40 $3.00 $1.86

Pricingasking rentVacancy

inventory vacancy Demand & Supply

medical Buildings

commerce / cushman & wakefieldlas Vegas office market report Q4 2009



Professional Office: Quarterly Vacancy

8.49%

8.69% 9.5

7% 10.32

%10.

89% 12.13%

12.45% 13.

18% 13.66% 14

.80% 16

.80%

16.98% 17

.30% 19.

83% 20.11

%20.

50%20.

79%

0%

5%

10%

15%

20%

25%

Q4 05

Q1 06

Q2 06

Q3 06

Q4 06

Q1 07

Q2 07

Q3 07

Q4 07

Q1 08

Q208 Q308 Q408 Q109 Q209 Q309 Q409

Professional Office: Quarterly Absorption (SF)

(1,000,000)

(500,000)

-

500,000

1,000,000

1,500,000

Q4 05

Q1 06

Q2 06

Q3 06

Q4 06

Q1 07

Q2 07

Q3 07

Q4 07

Q1 08

Q2 08

Q308 Q408 Q109 Q209 Q309 Q409



Professional Office: Inventory (SF) and Vacancy Rate (%)

25,000,000

30,000,000

35,000,000

40,000,000

45,000,000

50,000,000

Q4 05

Q1 06

Q2 06

Q3 06

Q4 06

Q1 07

Q2 07

Q3 07

Q4 07

Q1 08

Q2 08

Q308 Q408 Q109 Q209 Q309 Q409

0%

5%

10%

15%

20%

25%

Professional Office: Office Employment vs Vacancy Rate (%)

20.79%

8.96%

8.47%10.88%

13.22%

17.30%

200,000

225,000

250,000

275,000

300,000

325,000

350,000

2004

2005

2006

2007

2008

2009

0%

5%

10%

15%

20%

25%



Las Vegas Professional Office Market Overview 1998-2009 YTD

20.79%

14.62% 14.20%11.59%

15.77%13.61%

11.48%9.32%

15.28%17.30%

14.42% 14.72%

-

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

9,000,000

10,000,000

12,632,047 14,869,639 15,781,031 17,337,169 18,496,03820,020,89522,621,90621,752,13325,241,78630,199,55248,551,57343,975,459

$1.92 $1.94 $2.00 $1.94 $1.88 $1.87 $1.91 $2.03 $1.86 $1.91 $2.34 $2.10

$2.21 $2.19 $2.27 $2.26 $2.23 $2.16 $2.22 $2.36 $2.27 $2.29 $2.70 $2.33

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Base

Ave. Lease Rate Sub

Ave. Lease Rate DT

Squa

re F

eet

-3.00%

2.00%

7.00%

12.00%

17.00%

22.00%

Vaca

ncy

Built Net AbsorptionVacant Inventory Vacancy

Professional Office Submarket - Direct vs Sublease Vacancy

38.03%

10.12%

17.43%

14.92%

17.98%

27.00%

23.39% 22.77%

20.20% 20.79%

0.05% 0.45% 0.91% 0.78% 1.42% 1.65% 2.69%0.59% 1.03% 1.14%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

Vacacny % 38.03% 10.12% 17.43% 14.92% 17.98% 27.00% 23.39% 22.77% 20.20% 20.79%

Sublease % 0.05% 0.45% 0.91% 0.78% 1.42% 1.65% 2.69% 0.59% 1.03% 1.14%

Northwest DowntownCentral

EastCentral West West Southwest Airport Southeast North

Las Vegas Area Total



Professional Office: Building Class

Class A

Class B

Class C

Sublease SF 130,919 269,699 99,789

Vacancy 1,249,674 3,774,249 4,118,594

Existing SF 4,142,378 18,022,260 21,810,821

Class A Class B Class C

Professional Office Submarket - Rates

$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

FSG Rate $1.81 $2.33 $1.88 $1.74 $1.91 $2.57 $2.36 $2.31 $0.00 $2.11

MG Rate $1.76 $1.51 $1.11 $1.28 $1.63 $1.87 $1.55 $1.53 $2.16 $1.60

NNN Rate $1.46 $1.50 $0.96 $1.19 $1.33 $1.27 $1.26 $1.40 $0.99 $1.26

Northwest Downtown Central East

Central West West Southwest Airport Southeast North Las Vegas

Area Total


GLOSSARY/MAJOR MARKET DEFINITIONSCommerce Classification Definitions:

Top Tier Class A: Describes the highest quality office space locally available. The architecture of Class A office structures always prioritizes design and visual appeal over cost, and sometimes over practicality - a Class A building can be considered a monument and a testament to the success and power of its tenants. Class A: Generally 100,000 sq. ft. or larger (five or more floors), concrete and steel construction, built since 1980, business /support amenities, strong identifiable location/access. Most prestigious buildings competing for premier office users with above average rents for the area. Buildings have high quality standard finishes, state-of-the-art systems, exceptional accessibility and suggest a definitive market presence.

Lower Tier Class A: Investment – grade property, well located and offering high-quality space. Good design, above-average workmanship and materials. Well maintained and managed, exceptionally so if an older building. Quality tenants. Building(s) location considered premier with high market perception standards. Typically higher rent with excellent building finishes, multiple building amenities and high efficiencies. Class A will have 3 or more floors, concrete and steel construction.

Top Tier Class B: Building(s) location considered excellent with medium market perception standards. Renovated and in good locations. Typically lower rent than Class “A” with good building finishes, some building amenities and medium efficiencies. Built after 2000. Concrete and steel construction.

Lower Tier Class B: Buildings competing for a wide range of office users with average rents for the area. Building finishes are fair to good for the area and systems are adequate, but the buildings do not compete with class A at the same price. They are less appealing to tenants than Class A properties, and may be deficient in a number of respects including floor plans, condition and facilities. They lack prestige and must depend chiefly on a lower price to attract tenants and investors. Such buildings offer utilitarian space without special attractions and have ordinary design. Built before 2000. Wood frame and tilt wall construction.

Top Tier Class C: A classification used to describe buildings that generally qualify as no-frills, older buildings that offer basic space and command lower rents or sale prices compared to other buildings in the same market. Such buildings typically have below-average maintenance and management, and could have mixed or low tenant prestige, inferior elevators, and/or mechanical/electrical systems. These buildings lack prestige and must depend chiefly on a lower price to attract tenants and investors. 15 to 25 years old. Wood frame and tilt wall construction. Smaller buildings, Garden Style design.

Lower Tier Class C: Older, un-renovated and of any size in average to fair condition. Basic Space in a no-frills older building. Below –Average maintenance and management. Mixed or low tenant prestige. Inferior elevators and mechanical/ electrical systems. Class C Buildings are typically 15 to 25 years old but are maintaining steady occupancy.

Medical: A building is considered medical if greater than 55% of its rentable area is occupied by medical tenants.

Full Service Gross (FSG): A lease requiring the owner to pay all operating expenses, such as cleaning, maintenance and repairs, utilities, insurance and ad valorem taxes.


LAs VEGAs | office SUBMARKeT MAP


CoMMerCe | FuLL SerViCe CoMMerCiAL reAL eSTATe SoLuTionSCommerce Real Estate Solutions has been among the top commercial real estate brokerage firms in the Intermountain West for 30 years. From our headquarters in Salt Lake City and offices in Provo/Orem, Park City, Clearfield and St. George, Utah and Las Vegas, Nevada we offer a full range of brokerage services, valuation and consulting, client representation and property/facility management. Our alliance with Cushman & Wakefield extends our reach worldwide.

CuShMAn & WAkeFieLd ALLiAnCeA number of Cushman & Wakefield offices, including Commerce Real Estate Solutions, are independently owned and connected with the company by way of an international alliance. Cushman & Wakefield concentrates on larger markets like Los Angeles and New York, and alliance members like Commerce Real Estate Solutions concentrate on developing secondary markets.

Together the geographic coverage is nearly universal. This enables Cushman & Wakefield to provide comprehensive services for clients with local requirements as well as for those with more expansive national or international portfolios. In either case, Cushman & Wakefield’s services are supported by the full integrated resources of the entire alliance.

Cushman & Wakefield is the world’s largest privately-held commercial real estate services firm. Founded in 1917, it has 230 offices in 58 countries and more than 15,000 employees. The firm represents a diverse customer base ranging from small businesses to Fortune 500 companies. It offers a complete range of services within four primary disciplines: Transaction Services, including tenant and landlord representation in office, industrial and retail real estate; Capital Markets, including property sales, investment management, valuation services, investment banking, debt and equity financing; Client Solutions, including integrated real estate strategies for large corporations and property owners, and Consulting Services, including business and real estate consulting. A recognized leader in global real estate research, the firm publishes a broad array of proprietary reports available on its online Knowledge Center at www.cushmanwakefield.com.

230 Offices in 58 Countries

C&W Owned Offices

C&W Alliance/Associate Offices

AS OF MARCH 2009

Australia Adelaide* Melbourne* Sydney

China BeijingChengduGuangzhou Hong KongShanghaiShenzhen

Fiji*India Bangalore ChennaiGurgaonHyderabadKolkataMumbai – CityMumbai – Suburbs New DelhiPune

IndonesiaJakarta

JapanTokyo

MalaysiaKuala Lumpur*

New ZealandAuckland* Wellington*

PakistanKarachi*

PhilippinesManila*

Singapore South KoreaBusanSeoul

TaiwanTaipei*

ThailandBangkok*

VietnamHanoiHo Chi Minh City

Alberta Calgary Edmonton*

British ColumbiaVancouver

NewfoundlandSt. John's*

Nova ScotiaHalifax*

OntarioLondonNewmarketOttawa Toronto CentralToronto EastToronto West

Quebec Montreal CentralMontreal Suburban

ManitobaWinnipeg*

New BrunswickFredericton*Moncton*Saint John*

IsraelTel Aviv*

LebanonBeirut*

Middle East/AfricaSouth AfricaCape Town*Durban* Johannesburg*Pretoria*

United Arab EmiratesDubai

ArgentinaBuenos Aires

Brazil ManausRio de JaneiroSão Paulo

ChileSantiago*

Colombia Bogota*

Latin America

AustriaVienna*

BelgiumBrussels

BulgariaPleven*Plovdiv*Sofia*

Channel IslandsJersey*

Czech RepublicPrague

DenmarkCopenhagen*

England BirminghamLondon-City London-West EndManchesterThames Valley

FranceLyonParis

GermanyBerlinDusseldorfFrankfurtHamburgMunich

GreeceAthens

HungaryBudapest

Ireland Cork* Dublin*

Italy Bologna Milan Rome

LuxembourgLuxembourg*

MacedoniaSkopje*

The NetherlandsAmsterdam

Northern IrelandBelfast*

NorwayDrammen*Oslo*Stavanger*

PolandWarsaw

PortugalLisbon

RomaniaBucharestTimisoara

Russia Moscow

Scotland Edinburgh Glasgow

Serbia Belgrade*

Slovakia Bratislava

Spain Barcelona Madrid

Sweden Stockholm

SwitzerlandBasel* Geneva* Zurich*

TurkeyIstanbul

Canada

United States

Australia/Asia Pacific

Europe

EcuadorQuito

Mexico Ciudad JuarezGuadalajara*Mexico CityMonterrey

Peru Lima

VenezuelaCaracas

AlabamaBirmingham*MobileArizonaPhoenixTempeTucson*

CaliforniaCarlsbadInland EmpireL.A. L.A. South BayL.A. WestMarin/Sonoma CtyOaklandOrange CountySacramento San Diego - DowntownSan Diego - EastgateSan FranciscoSan JoseWalnut Creek

ColoradoColorado Springs*Denver

ConnecticutHartfordStamford

DelawareWilmington

District of ColumbiaWashington, D.C.

Florida Ft. LauderdaleFt. Myers*JacksonvilleMiami OrlandoPalm Beach Gardens Tampa

GeorgiaAtlanta

Hawaii Honolulu

Illinois Chicago Chicago Suburban

IndianaIndianapolis*

KentuckyLouisville*

MainePortland

MarylandBaltimoreBethesda

MassachusettsBoston

MichiganDetroit*Grand Rapids*Grosse PointKalamazoo*Lansing*Muskegon*

MinnesotaMinneapolisMinneapolis Suburban

MissouriKansas City*St. Louis*

NevadaLas Vegas*Reno

New HampshireManchester

New JerseyEast RutherfordEdisonMorristown

New York Albany*Binghamton*Buffalo*Corning/Elmira*IslandiaIthaca*Kingston*Melville, LIN.Y. Downtown N.Y. MidtownRochester*SyracuseSyracuse*Utica*Watertown*Westchester County

North CarolinaCharlotte*Greensboro/Winston-Salem*Raleigh/CaryRaleigh/Durham*Tarboro*

OhioCincinnati*Cleveland*Columbus*Toledo*

OregonPortland

PennsylvaniaPhiladelphiaPhiladelphia SuburbanPittsburgh*

Puerto RicoSan Juan*

South Carolina Charleston* Greenville/Spartanburg*

Tennessee Memphis*Nashville*

Texas Austin*Dallas HoustonSan Antonio*

Utah Clearfield/Ogden* Park City*Provo/Orem*Salt Lake City*St. George*

VirginiaFredicksburg*McLeanNewport News*Norfolk/Virginia Beach*Richmond*Roanoke*

WashingtonBellevue Seattle

WisconsinMilwaukee*

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