na office highlights q1 2012

7/31/2019 NA Office Highlights Q1 2012

1/16

HIGHLIGHTSNORTH AMERICA

WWW.COLLIERS.COM

Q1 2012 | OFFICE

K.C. CONWAY EMD | Market Analytics

The Bottom LineA national rebalancing o business growth rom FIRE (Finance, Insurance and Real Estate) to IC

(Intellectual Capital, Energy and Education) has shited oce demand to cities with ICEE indus

concentrations.

An oncoming wave o maturing debt will soon change the volume and tenor o sales transaction

National oce absorption remains steady, but a ul l robust recovery is still in the uture.

Oce construction is still low, with only . MSF o new supply delivered in Q .

Measured Rebalancing

We oten use the term measured rebalancing to describe the current state o the U.S. oce prope

market. This reers to the long process o working through an oversupply o oce space accordingmaterially dierent demand drivers. The market must recalculate the amount o oce space requir

and recalibrate in areas that space demand has shited.

MARKET INDICATORSRelative to prior period

U.S. OFFICE MARKETSUMMARY STATISTICS, Q

Ofce Demand Steady on Strength o

ICEE Industries

Q

Q*

VACANCY

NET ABSORPTION

CONSTRUCTION

RENTAL RATE

*Projected

Vacancy Rate: .%Change rom Q : .%

Absorption:

. Million Square Feet

New Construction:

.Million Square Feet

Under Construction:

Million Square Feet

Asking Rents Per Square Foot

(Change rom Q ):

Downtown Class A: $. (+.%)Suburban Class A: $. (+.%)

15.3% vac.

15.3% vac.

Sq. Ft. By Region

2

1.

2

Total_OSF-Vacan

Vacant_OSF

Absorption Per Mar

Q4 '11 - Q1 '12

1,200,000

120,000

-120,000

-1,200,000

4 m

2 m

400

Occupied Sq. Ft.

Vacant Sq. Ft.

16.3% vac.

15.3% vac.

15.3% vac.

13.5% vac.

6.7% vac.

NORTH AMERICAN OFFICE VACANCY, INVENTORY AND ABSORPTIONQ1


2/16P. | COLLIERS INTERNATIONAL

HIGHLIGHTS | Q1 2012 | OFFICE | NORTH AMERICA

Oce space demand is now driven by techindustries in Knowledge Gateway markets,such as Austin, Boston and Silicon Valley; andenergy corridor markets extending north romHouston into Canada.

Raleigh

Washington

Silicon Valley

Austin

Denver

Houston

Calgary

Toronto

Seattle

Baltimore

ICEE Markets on Fire FIRE Markets on Ice

Houston and Calgary were the only two markets with over 1 million

square feet (MSF) of absorption in Q1 2012.

Toronto boasted the lowest vacancy (5.3 percent) of any market with

over 10 MSF of inventory.

Seattle ranks 5th highest in absorption, with a vacancy rate below13 percent.

Silicon Valley was in the top 10 US markets for decreased vacancy

rate.

Baltimore and Washington DC each boast a vacancy rate below 15

percent.

Raleigh boasts a vacancy rate below 12.5 percent and saw positive

absorption for the quarter.

Atlanta and Los Angeles were the only two metros with inventories

over 200 million SF and vacancies over 17.5 percent.

Los Angeles and Orange County each had vacancy rates over 18

percent.

Central New Jersey showed the worst absorption of the top 20oce markets.

Chicago saw negative absorption and 15 percent vacancy.

West Palm Beach experienced negative absorption and 19.5 percen

vacancy.

Midtown South Manhattan saw negative absorption in Q1 2012.

Phoenix suered from negative absorption and a vacancy rate over

22 percent.

Prior to the housing and nancial crises, oce demand was aligned with

growth in nancial services and the over-heated housing markets. New

bank charters, growing numbers o subprime lenders and unparalleled

demand or residential and commercial mortgage-backed securities allpropelled a need or more oce space in markets with high concentrations

o these industries, such as Chicago, Los Angeles and New York. As the

subsequent recession and recovery has unolded, nancial and real estate

businesses are no longer growing in the way they once were. Now, a new

set o demand drivers has taken hold.

ICEE Markets on Fire One o the key dierences between improving and

lagging oce markets is the type o industry concentrations each has.

Oce space demand is now driven by tech industries in Knowledge

Gateway markets, such as Austin, Boston and Silicon Valley; and energy

corridor markets extending north rom Houston into Canada. As some

manuacturing returns to the U.S. rom Asia and India, oce demand is

also growing in inland manuacturing markets in the Midwest and portmarkets along the Gul Coast, South Florida and the Mid-Atlantic States

especially Miami, Virginia and North Carolina.

We have chosen two categories to distinguish between leading and lagging

industries: FIRE and ICEE.

Finance, Insurance and Real Estate (FIRE) markets are seeing stalled

growth in demand or oce space.

Intellectual Capital, Energy and Education (ICEE) markets eature con-

centrations in a combination o technology, higher education and energy

industries. These growing industries are pushing up demand or oce

space in select markets, especially in Class A buildings.Oce demand has shited away rom FIRE and toward ICEE, thereby a-

voring cities with higher concentrations o ICEE industries.

Rents and Absorption Showed Improvement over Last Year The U.S.

seen a sustained modest improvement in vacancy and absorption in rec

quarters. However, a more robust recovery in oce demandsuch as

occurring in multiamily and industrial real estateremains elusiUncertainties in the economy are keeping businesses rom hiring and le

ing oces.

For Q1 2012, approximately 14.9 percent o the inventory that Colli

tracks was vacant; an improvement o 8 basis points rom year-end 20

With only 7.5 MSF o new supply delivered to these 81 markets in Q1,

absorption was a positive 8.1 MSF. With this amount o vacant space, a

anemic oce-related job growth, oce rents improved just marginally

the 36 CBD markets that reported rent increases. The other 36 CBD m

kets registered fat or declining rents. Thirty-two Suburban markets

ported rent growth, while 37 suburban markets reported fat or declin

quarter-over-quarter rents. Class A CBD rents improved rom $40.73

square oot to $40.96 per square oot. Class A Suburban rents increasrom $25.86 to $26.14 per square oot.

SELECT INTELLECTUAL CAPITAL, ENERGY AND EDUCATION (ICEE) CITIES




Slow Recovery Makes Businesses Hesitate to Expand Owners and inves-

tors held out the hope at the onset o 2012 that the rebound in multiamily

and industrial real estate demand would soon spill over to the oce sector.

This hope was rooted in a number o promising economic metrics: in

March, it was conrmed that GDP expanded during the nal quarter o 2011

by 3 percent; the unemployment rate declined to 8.3 percent; and the labor

market delivered 227,000 new jobs in February. However, the start o

2012 now seems eerily similar to that o 2011, which began with positive

economic indicators that zzled out as the year progressed. Now a more

robust economic recovery remains elusive amidst uncertainties stemming

rom upcoming elections and concerns about the impact o the European

Crisis on the U.S. economy. Businesses and investors are anxious about

making long-term investment decisions.

Pockets o Strength While a robust recovery remains elusive at the national

level, macro market averages tell just a part o the oce property sector

story. A more detailed look shows a market split into areas o strong and

weak demand. In many cases, the shit in oce demand drivers rom FIRE to

ICEE has been the engine o growth or these stand-out markets.The largest markets are experiencing more robust ofce demand, with

ICEE as a major driver. More than hal o the total net absorption in Q1

came rom the 21 largest markets. Approximately 2.6 MSF o this net ab-

sorption (24 percent o 10.8 MSF North American total.) came rom ICEE

markets ranked among the 21 largest metros.In terms o occupancy rates, the largest U.S. markets are in line with the

overall U.S. rate. The 10 largest markets (Midtown Manhattan, MidtownManhattan South, Washington, D.C., Chicago, Dallas, Atlanta, Los Angeles,

Houston, Boston and Philadelphia) have a vacancy rate o around 15

percent.

The next ten largest markets show a lower vacancy rate, thanks to the

support o three ICEE markets. The metros ranked 11th to 2nd in size

(Toronto, Denver, Northern New Jersey, Detroit, Phoenix, Cleveland, Seattle,

Pittsburgh, Minneapolis, Central New Jersey, Charlotte and Baltimore) have

an average vacancy rate o 14.1 percent, 85 basis points lower than the aver-

age or the U.S.

The highest vacancies are concentrated in Caliornia and the Northeast.

Approximately one-third o the markets have an average vacancy rate above

15 percent. O these 27 markets, seven are located in Caliornia and ve arelocated in the Northeast, where FIRE is the primary oce demand driver.

ICEE drives much o major market absorption. Only two markets had

in excess o 1 MSF o net absorption, and both were ICEE markets:

Houston and Calgary. Only eight metros had net oce absorption in ex-

cess o 500,000 square eet (Calgary, Houston, Toronto, Seattle, Atlanta,

NY Midtown Manhattan, NY Downtown Manhattan, and Philadelphia),

and hal o these were ICEE markets.

Investors should look beyond the core, as secondary markets show

some strength, driven by ICEE, manuacturing and agriculture. Only 19

o the 60 markets that contain less than 100 MSF o inventory saw neg

tive absorption. This trend suggests that, despite the strategy o insti

tional capital which pursues properties in core markets with at least 1

MSF o oce inventory, investors should begin to look beyond the 7/

(the core 11 markets in 7 states). Oce demand in secondary marksuch as Raleigh and the Silicon Valley is being driven by ICEE, but beyo

these markets much o the demand is being ueled by a more traditio

set o drivers. A boom in agriculture and manuacturing growth is stim

lating some oce demand in markets such as Boise, Charlotte, Gra

Rapids, Indianapolis, Louisville and Nashville.

High Oce CMBS Delinquencies Set the Stage The volume and tenor

transaction activity is set to change, as the wave o maturing oce d

creeps into ocus. The news remains disconcerting. The delinquency r

or U.S. commercial real estate loans in CMBS increased another 12 ba

points in April to 9.3 percent, as reported by TREPP. The value o del

quent loans is now $58.1 billion. The oce property delinquency rate wup 85 basis points, setting a new all-time high o 10.23 percent.

In many cases, the shit in oce demanddrivers rom FIRE to ICEE has been the engineo growth or these stand-out markets.

US GDP PRE-/ FINANCIAL CRISIS THROUGH Q

Q2

Q3

Q4

Q12011

Q2

Q3

Q4

Q3

Q12009

Q2

Q2

Q4

Q3

Q12008

Q12007

Q2

Q3

Q4

Q12010

Q4

Q12012

-8

-10

-6

-4

-2

0

2

4

6

1.8

3

1.81.3

2.32.5

3.83.93.8

1.71.3

1.7

33.6

-6.7

-8.9

-3.7

-1.8 -0.7

0.40.5

Source: Trepp

DELINQUENCY RATES BY PROPERTY TYPE

APR - MAR - FEB - MO MO YR

Industrial 12.36 12.54 12.37 12.14 11.59 10.76

Lodging 10.55 10.63 11.05 12.09 14.12 15.45

Multiamily 15.18 15.39 14.65 15.39 16.73 16.77

Oce 10.23 9.41 9.04 8.90 8.95 7.20

Retail 7.98 8.24 8.00 7.88 7.61 8.15

Overall 9.80 9.68 9.37 9.52 9.77 9.65




Stabilized and Distressed Sales Set Two Very Diferent Pricing Benchmarks The ICEE markets

will continue to attract a disproportionate share o investment capital slated or oce properties

in 2012, thanks to positive absorption, declining vacancy and strong oce-related job growth. But

unlike the distinction in demand between FIRE and ICEE, there is another story o extreme biur-

cation in transaction volume and pricing: the split between the highly valued stabilized assets in

core markets and the distressed and overleveraged properties working their way through debt

restructuring.

Institutional capital is still ocused on stabilized assets in core markets, regardless o the oce

demand drivers, with transaction activity concentrated in a ew major markets; New York,

Washington, D.C., Chicago, Boston, Houston, Los Angeles, San Francisco, Seattle, Dallas, Atlanta

and Denver were all markets with more than $1.5 billion in oce transaction activity in 2011 and

they continue to lead investment activity in Q1 2012, according to data rom Real Capital Analytics.

Much o the institutional investment in Atlanta and Chicago represents opportunistic distressed

asset investment by those wishing to capitalize on overleveraged CMBS oce debt maturities and

deaults. The remaining eight markets represent the core nancial service, technology and energy

markets. Institutional capital believes these eight markets have the most compelling metrics and

yield or investment objectives.

Two recent oce transactions illustrate the pricing dichotomy between stabilized properties incore markets and distressed or overleveraged properties.

$550 per square oot or Seattles 872,000-square-oot Russell Investment Center

$101 per square oot or Minneapolis 1.1-million-square-oot Fith Street Towers oce complex

The Russell Investment Center in Seattle, built in 2006, was originally the corporate headquarters

o Washington Mutual. As allout o the nancial crisis, the property was let without a tenant. In

2009, Northwest Mutual paid $132 per square oot or this mostly vacant CBD Seattle oce build-

ing. Since then, the property attracted investment-grade tenants leasing up 95% o its available

space. In three years, Northwest Mutual more than quadrupled its investment. This transaction

shows the high price that institutional capital will pay or a prime property in a core marketsales

above $500 per square oot are no longer atypical in Boston, Houston and Seattlewhere there iscertainty o cash-fow stability. This kind o turnaround story is what investors in the over-lever-

aged Atlanta, Charlotte, Chicago and Phoenix markets are anticipating.

The Minneapolis Fith Street Towers oce complex exemplies a very dierent type o transaction.

This 1.1 MSF 1985 vintage property was purchased in a oreclosure auction sale with an occupancy

that had allen to 60 percent. The $101 per square price shows the relatively low ceiling that in-

vestment capital is willing to pay or over-leveraged and distressed oce assets requiring both

urther unds and considerable management expertise in order to re-stabilize.

Absorption dipped

slightly below

expectations in the

beginning o .

We attribute much

o this to the

post-holiday slump

in leasing activity.

U.S. OFFICE MARKET Q Q

Q4

2011

Q12012

Q32011

Q2

2011

Q12011

Q4

2010

Q32010

Q2

2010

Absorption Completions Vacancy

MillionSquareFeet

Vacancy(%)

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0016.32 16.29 16.26 15.03 14.9515.57 15.3616.11 15.14

-10

-5

0

5

10

15

20

Q12010

49%

45%

6%

Excluding renewals, of the leases signed

this quarter in your CBD/downtown,

did most tenants:

Contract

Expand

Holding Steady

What was the trend for Free Rent

(in Months) oered by CBD Landlords

this quarter?

82%

12% 6%

Same

Less More

What was the trend for Tenant

Improvement Allowances ($ per SF)

oered by Landlords this quarter?

85%

12% 3%

Same

Less More

Excluding renewals, of the leases

signed this quarter in your Suburbanoce market, did most tenants:

48%Expand 44%

Contract

8%

Holding Steady


5/16

HIGHLIGHTS | Q1 2012 | OFFICE | NORTH AMERI

COLLIERS INTERNATIONAL | P

The market must recalculate the amount ooce space required, and recalibrate in areasthat space demand has shited.

Rents and Oce Construction at a Crawl, but ICEE Markets Show Signs

o Lie Only 9.5 MSF o new supply was delivered in Q1 2012, just 0.2

percent o the total 6.3 billion square eet o existing oce inventory. The

lack o signicant oce construction has helped to bolster current oce

demand and will intensiy uture demand when it returns. Stabilized oce

markets with vacancy rates o 1015 percent and 1.52.0 percent job

growth require existing inventory to expand by approximately 2.0 percent to

maintain market equilibrium and keep rents rom rising. At such a growth

rate, the nation would require 122.8 MSFmore than eight times the cur-

rent new supply. With so little new supply in the pipeline, the stage is set or

continued improvement in oce vacancy, especially in the ICEE markets.

The markets that saw the most new deliveries o space in Q1 2012 were

New York, Calgary, Washington, D.C., Houston, Philadelphia, Baltimore and

Louisville.

In some cases, the absence o available properties in technology and energy

markets is stimulating new construction activity. This has caused an uptick

in Houstons oce construction, where 915,000 square eet o new supply

was delivered in Q1 2012. It has also spurred unexpected construction insome smaller markets. In the Raleigh market, or example, sotware

publisher SAS Institute announced in March that it will build anoth

213,000 square eet on its Cary campus later this year. SAS was not a

to nd existing expansion space. This is not the rst new construction

SAS. In 2011, it opened a 287,000 square oot building, and added 367 jo

When this latest building is completed in late 2014, SAS will add anot

650 oce workers to its existing 5,000 Cary, NC, employees.

This same kind o growth and demand or oce space is occurring in oth

technology and energy markets, such as Austin, Baltimore, Denver, S

Jose/Silicon Valley, Seattle and Portland.

Downtown Houston, TX; Source: Thinkstock.com


6/16



UNITED STATES | DOWNTOWN OFFICE | ALL INVENTORY

MARKET

EXISTINGINVENTORY (SF)

MAR. ,

NEW SUPPLYQ

(SF)

UNDERCONSTRUCTION

(SF)

VACANCYRATE (%)

DEC. ,

VACANCYRATE (%)

MAR. ,

ABSORPTIONQ

(SF)

NORTHEAST

Baltimore, MD 29,115,000 34,000 - 15.3 15.3 28,000

Boston, MA 61,047,000 - 1,810,000 15.8 15.4 153,000

Hartord, CT 9,715,000 - - 24.3 25.1 (35,000)

New York, NYDowntownManhattan

110,942,000 2,845,000 5,200,000 15.9 16.0 707,000

New York, NYMidtownManhattan

227,532,000 740,000 1,052,000 11.9 11.7 766,000

New York, NYMidtownSouth Manhattan

165,369,000 35,000 850,000 8.7 8.6 (53,000)

Philadelphia, PA 43,114,000 - - 11.4 11.6 (93,000)

Pittsburgh, PA 32,234,000 - - 10.3 9.8 (50,000)

Stamord, CT 19,273,000 - - 18.8 18.7 162,000

Washington DC 140,860,000 - 2,107,000 10.5 10.3 285,000

White Plains, NY 7,800,000 - - 14.3 14.8 (26,000)

NORTHEAST TOTAL/AVERAGE 847,001,000

3,654,000 11,019,000 12.2 12.1 1,844,000

SOUTH

Atlanta, GA 49,946,000 - 450,000 17.9 17.6 154,000

Charleston, SC 2,068,000 - - 7.6 9.0 (18,000)

Charlotte, NC 23,188,000 - - 11.1 11.3 37,000

Columbia, SC 4,964,000 - - 24.1 23.8 (30,000)

Dallas/Fort Worth, TX 45,550,000 - - 23.8 24.2 (175,000)

Ft. Lauderdale-Broward, FL 8,129,000 - - 16.6 16.1 68,000

Houston, TX 38,333,000 - - 16.6 14.3 267,000

Jacksonville, FL 15,902,000 - - 13.6 14.5 10,000

Little Rock, AR 6,538,000 - - 16.0 15.3 1,000

Louisville, KY 51,664,000 233,000 195,000 11.4 11.0 461,000

Memphis, TN 13,366,000 - - 18.2 18.1 56,000

Miami-Dade, FL 17,774,000 - - 20.9 20.5 72,000

Nashville, TN 8,114,000 530,000 90,000 22.7 22.9 1,000

Oklahoma City, OK 9,576,000 - 1,800,000 16.5 15.1 133,000

Orlando, FL 12,704,000 - - 13.1 11.8 164,000

Raleigh/Durham/ChapelHill, NC

12,338,000 - 402,000 5.8 5.7 (44,000)

Savannah, GA 747,000 - 72,000 16.9 15.1 13,000

Tampa Bay, FL 8,423,000 - - 14.3 14.0 1,000

West Palm Beach/PalmBeach County, FL

10,047,000 - - 18.2 18.5 (55,000)

SOUTH TOTAL/AVERAGE 339,371,000 763,000 3,009,000 16.4 16.0 1,116,000




UNITED STATES | DOWNTOWN OFFICE | ALL INVENTORY

MARKET


MAR. ,

NEW SUPPLYQ

(SF)

UNDERCONSTRUCTION

(SF)

VACANCYRATE (%)

DEC. ,

VACANCYRATE (%)

MAR. ,

ABSORPTIONQ

(SF)

MIDWEST

Chicago, IL 158,755,000 - - 14.1 14.1 (35,000)

Cincinnati, OH 18,008,000 - - 17.8 17.8 (9,000)

Cleveland, OH 34,162,000 - 475,000 18.5 18.4 26,000

Columbus, OH 19,358,000 - - 10.9 10.9 6,000

Detroit, MI 32,988,000 - - 19.4 20.5 (243,000)

Grand Rapids, MI 5,457,000 - - 24.2 24.7 (37,000)

Indianapolis, IN 23,453,000 - - 13.6 13.8 (43,000)

Kansas City, MO 35,108,000 - - 13.0 13.1 (55,000)

Minneapolis, MN 32,612,000 - 62,000 14.6 13.8 271,000

Omaha, NE 6,382,000 - - 7.4 6.0 -

St. Louis, MO 27,494,000 - - 19.1 19.2 (17,000)

St. Paul, MN 13,638,000 - - 13.8 13.4 54,000

MIDWEST TOTAL/AVERAGE 407,415,000 - 537,000 15.2 15.2 (82,000)

WEST

Bakerseld, CA 3,010,000 - - 9.9 10.1 (10,000)

Boise, ID 3,697,000 - 260,000 12.0 11.6 2,000

Denver, CO 34,361,000 - 382,000 12.5 12.1 172,000

Fresno, CA 3,285,000 - - 12.0 12.0 -

Honolulu, HI 7,113,000 - - 14.0 14.1 (10,000)

Las Vegas, NV 4,183,000 - 129,000 12.7 13.3 (22,000)

Los Angeles, CA 31,943,000 - 257,000 18.0 17.8 (30,000)

Oakland, CA 16,892,000 - - 13.3 13.5 (28,000)

Phoenix, AZ 20,176,000 - - 20.7 22.2 (337,000)

Portland, OR 34,055,000 - 133,000 8.7 9.1 (129,000)

Reno, NV 3,921,000 - - 19.8 15.4 (1,000)

Sacramento, CA 19,038,000 - - 10.3 10.1 51,000

San Diego, CA 10,150,000 - - 19.8 20.0 20,000

San Francisco, CA 87,205,000 - 1,908,000 12.4 12.2 333,000

San JoseSilicon Valley 7,602,000 - - 23.5 24.6 (91,000)

Seattle/Puget Sound, WA 56,057,000 - 544,000 13.9 13.0 525,000

Stockton, CA 8,200,000 - - 19.9 19.7 30,000

Walnut Creek/Pleasanton, CA 12,637,000 - - 17.2 17.4 (24,000)

WEST TOTAL/AVERAGE 363,525,000 - 3,613,000 14.0 13.9 451,000

U.S. TOTAL/AVERAGE 1,957,312,000 4,417,000 18,178,000 13.9 13.7 3,329,000


8/16



UNITED STATES | DOWNTOWN OFFICE | CLASS A

MARKET


MAR. ,

VACANCYRATE (%)

DEC. ,

VACANCYRATE (%)

MAR. ,

ABSORPTIONQ

(SF)

AVG ANNUALQUOTED RENT

(USD)MAR. ,

QUARTERLYCHANGE IN

RENT(%)

ANNUAL CHANIN RENT

(%)

NORTHEAST

Baltimore, MD 13,728,000 16.3 16.4 12,000 23.25 3.7% -3.7

Boston, MA 41,259,000 15.3 15.0 106,000 45.83 -4.0% -0.1

Hartord, CT 6,383,000 23.5 24.1 (44,000) 22.86 0.4% -0.6

New York, NYDowntown Manhattan 77,673,000 18.1 18.3 594,000 48.32 0.3% 25.6

New York, NYMidtown Manhattan 192,291,000 12.6 12.5 711,000 68.61 1.3% 8.3

New York, NYMidtown South Manhattan 32,865,000 7.8 8.1 (32,000) 49.22 0.8% 4.0

Philadelphia, PA 32,961,000 11.2 11.2 17,000 26.40 0.0% 1.1

Pittsburgh, PA 17,957,000 8.0 8.2 (36,000) 22.63 0.2% 0.4

Stamord, CT 13,300,000 19.9 20.0 (24,000) 38.99 -5.3% -3.1

Washington DC 85,274,000 12.7 12.1 583,000 52.80 -0.1% -0.3

White Plains, NY 4,969,000 16.7 17.3 (15,000) 31.63 -2.0% 5.6

NORTHEAST TOTAL/AVERAGE 518,660,000 13.6 13.5 1,872,000 52.78 0.3% 6.9

SOUTH

Atlanta, GA 29,994,000 19.5 19.3 84,000 22.92 0.8% 1.1

Charleston, SC 1,043,000 5.9 5.1 8,000 29.96 2.8% 4.2

Charlotte, NC 16,174,000 12.6 13.6 (66,000) 23.49 -3.2% -2.1

Columbia, SC 2,023,000 15.5 14.7 (8,000) 14.48 -24.4% -25.7

Dallas/Fort Worth, TX 28,056,000 20.4 21.1 (197,000) 25.00 0.0% -1.0

Ft. Lauderdale-Broward, FL 4,454,000 23.8 22.4 64,000 31.37 0.4% -2.4

Houston, TX 26,122,000 14.3 10.9 239,000 36.42 3.2% 6.5

Jacksonville, FL 6,830,000 19.5 19.5 (24,000) 19.36 1.3% 2.4

Little Rock, AR 2,636,000 10.0 10.2 (3,000) 15.68 0.5% -5.5

Louisville, KY 10,222,000 12.7 11.6 226,000 19.42 -4.8% -6.0

Memphis, TN 3,934,000 18.0 17.2 30,000 33.82 1.6% -2.8

Miami-Dade, FL 9,389,000 25.5 24.6 78,000 40.38 -2.1% -2.6

Nashville, TN 3,619,000 22.7 21.4 6,000 22.92 1.6% 1.1

Oklahoma City, OK 1,950,000 12.1 6.4 111,000 17.18 0.0% N

Orlando, FL 5,740,000 17.1 15.4 94,000 23.73 -1.4% 3.4

Raleigh/Durham/Chapel Hill, NC 4,902,000 7.0 6.9 (6,000) 24.00 6.4% -0.5

Savannah, GA 570,000 10.8 12.2 (8,000) 19.15 -0.3% N

Tampa Bay, FL 4,783,000 15.8 15.5 (9,000) 23.09 2.1% 2.5

West Palm Beach/Palm Beach County, FL 3,323,000 21.5 20.9 (6,000) 37.11 0.8% 0.6

SOUTH TOTAL/AVERAGE 165,764,000 17.3 16.6 613,000 26.26 0.2% 0.1




UNITED STATES | DOWNTOWN OFFICE | CLASS A

MARKET


MAR. ,

VACANCYRATE (%)

DEC. ,

VACANCYRATE (%)

MAR. ,

ABSORPTIONQ

(SF)


(USD)MAR. ,

QUARTERLYCHANGE IN

RENT(%)

ANNUAL CHAIN RENT

(%)

MIDWEST

Chicago, IL 60,452,000 14.9 15.4 (301,000) 37.27 0.5% -0.6

Cincinnati, OH 8,815,000 19.1 20.1 (92,000) 23.25 -0.5% 9.0

Cleveland, OH 9,728,000 12.9 12.1 81,000 21.65 4.7% 2.5

Columbus, OH 8,106,000 11.3 11.2 6,000 19.64 4.5% 2.0

Detroit, MI 11,513,000 15.8 19.1 (372,000) 22.50 0.2% -2.2

Grand Rapids, MI 1,542,000 23.2 23.6 (39,000) 20.90 -0.3% 0.1

Indianapolis, IN 9,929,000 18.9 19.1 (36,000) 19.29 0.7% -0.4

Kansas City, MO 10,270,000 16.5 17.7 (120,000) 19.23 -1.7% -1.6

Minneapolis, MN 14,162,000 12.7 11.8 137,000 15.08 0.0% N

Omaha, NE 3,418,000 3.6 3.6 3,000 19.87 3.0% 5.7

St. Louis, MO 10,678,000 15.0 16.9 (227,000) 17.53 -1.4% -5.5

St. Paul, MN 3,123,000 9.8 9.8 91,000 11.10 0.0% N

MIDWEST TOTAL/AVERAGE 151,736,000 14.8% 15.4 (869,000) 26.44 0.6% -5.7

WEST

Bakerseld, CA 670,000 3.8 5.0 (8,000) 17.40 0.0% 0.0

Boise, ID 2,057,000 7.6 8.2 (12,000) 19.08 2.5% 6.0

Denver, CO 21,064,000 12.6 11.4 243,000 28.52 1.7% 5.5

Fresno, CA 1,058,000 12.4 12.4 - 26.00 0.0% 5.7

Honolulu, HI 4,960,000 13.7 14.0 (17,000) 35.16 1.0% 0.3

Las Vegas, NV 808,000 9.1 11.2 (18,000) 30.60 -1.5% -12.1

Los Angeles, CA 17,750,000 15.4 15.2 (38,000) 38.40 -0.3% -0.3

Oakland, CA 10,198,000 11.7 11.7 12,000 31.56 -0.4% 1.2Phoenix, AZ 9,554,000 20.4 20.4 (2,000) 23.47 -0.4% -2.5

Portland, OR 13,206,000 7.1 7.9 (109,000) 25.07 -0.5% -1.3

Reno, NV 667,000 16.8 19.2 (5,000) 22.05 -4.3% -5.8

Sacramento, CA 9,062,000 9.1 8.7 24,000 32.27 -0.2% 0.4

San Diego, CA 7,254,000 16.9 17.7 (42,000) 28.20 -0.4% -1.7

San Francisco, CA 52,917,000 12.0 12.0 414,000 43.51 5.8% 21.0

San JoseSilicon Valley 3,365,000 29.1 29.2 (4,000) 31.80 -0.7% -1.9

Seattle/Puget Sound, WA 32,121,000 16.9 15.5 431,000 30.13 0.1% 3.4

Stockton, CA 2,769,000 30.0 29.8 1,000 20.40 -3.4% -5.6

Walnut Creek/Pleasanton, CA 8,234,000 15.2 15.2 (2,000) 27.60 0.4% 0.0

WEST TOTAL/AVERAGE 197,714,000 13.9 13.7 868,000 33.43 2.1% 7.2

US TOTAL/AVERAGE 1,033,874,000 14.4 14.3 2,484,000 40.96 0.6% 4.3




UNITED STATES | SUBURBAN OFFICE | ALL INVENTORY

MARKET


MAR. ,

NEW SUPPLYQ

(SF)

UNDERCONSTRUCTION

(SF)

VACANCYRATE (%)

DEC ,

VACANCYRATE (%)

MAR. ,

ABSORPTIONQ

(SF)

NORTHEAST

Baltimore, MD 65,087,000 194,000 - 14.4 14.3 195,000

Boston, MA 106,977,000 - 667,000 19.6 19.8 (442,000)

Faireld County, CT 41,560,000 - - 11.1 11.2 (9,000)

Hartord, CT 12,437,000 - - 18.0 17.5 66,000

Long Island, NY 71,209,000 - 96,000 10.7 10.3 247,000

New JerseyCentral 103,675,000 - - 16.1 16.7 (693,000)

New JerseyNorthern 137,832,000 - - 15.8 15.5 366,000

Philadelphia, PA 109,975,000 218,000 895,000 15.9 15.5 597,000

Pittsburgh, PA 93,053,000 141,000 575,000 8.0 7.9 329,000

Washington DC 305,036,000 330,000 3,893,000 14.7 15.1 (750,000)

Westchester County, NY 37,713,000 - - 12.4 12.8 (148,000)

NORTHEAST TOTAL/AVERAGE 1,084,554,000 883,000 6,126,000 14.5 14.6 (242,000)

SOUTH

Atlanta, GA 170,438,000 16,000 1,251,000 17.9 17.6 474,000

Charleston, SC 9,380,000 - - 15.5 16.2 (36,000)

Charlotte, NC 74,197,000 - 644,000 13.6 13.4 198,000

Columbia, SC 5,050,000 - - 25.5 26.5 (41,000)

Dallas/Fort Worth, TX 258,883,000 85,000 995,000 15.1 15.7 392,000

Ft. Lauderdale-Broward, FL 43,569,000 - - 14.1 13.9 62,000

Houston, TX 160,231,000 916,000 2,292,000 15.3 14.7 808,000

Jacksonville, FL 43,484,000 60,000 19,000 13.6 13.8 62,000

Little Rock, AR 7,433,000 - 182,000 10.5 13.5 (223,000)Memphis, TN 53,580,000 - - 14.1 14.9 (164,000)

Miami-Dade, FL 62,246,000 - 369,000 14.8 14.5 305,000

Nashville, TN 27,030,000 - 243,000 10.3 8.4 69,000

Oklahoma City, OK 23,861,000 320,000 - 9.2 8.6 28,000

Orlando, FL 56,622,000 134,000 280,000 15.0 14.8 264,000

Raleigh/Durham/Chapel Hill, NC 67,294,000 - 141,000 14.2 13.6 237,000

Savannah, GA 1,555,000 - - 24.7 22.2 40,000

Tampa Bay, FL 71,716,000 - 286,000 15.7 16.1 (249,000)

West Palm Beach/Palm Beach County, FL 28,408,000 - - 19.8 20.0 40,000

SOUTH TOTAL/AVERAGE 1,164,977,000 1,531,000 6,702,000 15.2 15.2 2,266,000MIDWEST

Chicago, IL 155,464,000 - 416,000 17.6 17.6 7,000

Cincinnati, OH 35,097,000 - 245,000 20.5 19.2 458,000

Cleveland, OH 94,728,000 210,000 1,081,000 10.3 10.4 194,000

Columbus, OH 43,683,000 140,000 50,000 12.6 12.5 (24,000)

Detroit, MI 99,620,000 - 58,000 20.9 20.5 250,000

Grand Rapids, MI 12,791,000 - - 23.1 26.0 100,000

Indianapolis, IN 44,733,000 - - 16.1 15.9 70,000


11/16



UNITED STATES | SUBURBAN OFFICE | ALL INVENTORY

MARKET


MAR. ,

NEW SUPPLYQ

(SF)

UNDERCONSTRUCTION

(SF)

VACANCYRATE (%)

DEC ,

VACANCYRATE (%)

MAR. ,

ABSORPTIONQ

(SF)

Kansas City, MO 56,191,000 - 102,000 13.8 13.9 (82,000)

Minneapolis, MN 83,345,000 - 467,000 13.8 13.7 121,000

Omaha, NE 20,470,000 - 679,000 12.9 12.3 133,000

St. Louis, MO 55,304,000 - - 12.5 10.8 47,000

MIDWEST TOTAL/AVERAGE 701,426,000 350,000 3,098,000 15.5 15.4 1,274,000

WEST

Bakerseld, CA 5,975,000 - - 8.1 7.8 26,000

Boise, ID 10,883,000 - - 21.4 19.2 231,000

Denver, CO 103,618,000 - 185,000 15.1 15.0 108,000

Faireld, CA 4,708,000 - - 23.7 23.5 12,000

Fresno, CA 17,981,000 6,000 10,000 13.5 13.2 69,000

Honolulu, HI 7,513,000 - - 13.1 13.1 2,000Las Vegas, NV 35,089,000 9,000 5,000 26.3 26.4 (18,000)

Los AngelesInland Empire, CA 21,558,000 - 140,000 23.3 23.2 23,000

Los Angeles, CA 168,450,000 - 1,123,000 18.3 18.3 95,000

Oakland, CA 16,066,000 - 97,000 17.6 18.6 (107,000)

Orange County, CA 80,682,000 - 380,000 18.8 18.6 (282,000)

Phoenix, AZ 110,351,000 210,000 236,000 22.0 22.0 152,000

Portland, OR 43,962,000 28,000 385,000 12.5 11.9 294,000

Reno, NV 6,934,000 - - 19.7 16.9 1,000

Sacramento, CA 72,687,000 72,000 235,000 19.4 19.4 63,000

San Diego, CA 68,066,000 4,000 249,000 14.7 14.3 255,000San Francisco Peninsula 35,123,000 - - 12.5 12.5 (5,000)

San JoseSilicon Valley 53,922,000 - 447,000 14.9 13.9 367,000

Seattle/Puget Sound, WA 72,785,000 - 426,000 13.1 12.9 124,000

Walnut Creek/Pleasanton, CA 32,942,000 - - 15.0 14.7 96,000

WEST TOTAL/AVERAGE 969,295,000 329,000 3,918,000 17.4 17.2 1,506,000

U.S. TOTAL/AVERAGE 3,920,252,000 3,093,000 19,844,000 15.6 15.5 4,804,000




UNITED STATES | SUBURBAN OFFICE | CLASS A

MARKET


MAR. ,

VACANCYRATE (%)

DEC. ,

VACANCYRATE (%)

MAR. ,

ABSORPTIONQ

(SF)

AVERAGE ANNUALQUOTED RENT (USDPSF) MAR ,

QUARTERLYCHANGE IN RENT

(%)

ANNUALCHANGE I

RENT(%)

NORTHEAST

Baltimore, MD 26,571,000 15.1 15.3 (13,000) 25.41 -1.1% -1.7

Boston, MA 44,915,000 17.3 17.4 81,000 26.74 1.1% 2.2

Faireld County, CT 17,480,000 12.2 12.0 (70,000) 37.86 17.0% 24.0

Hartord, CT 7,408,000 18.9 17.2 352,000 20.68 -1.3% 1.1

Long Island, NY 23,008,000 12.1 11.7 49,000 30.03 0.4% N/

New JerseyCentral 60,629,000 17.3 17.9 (13,000) 22.95 0.9% 0.8

New JerseyNorthern 83,843,000 14.6 14.3 81,000 23.39 -1.3% -5.2

Philadelphia, PA 67,281,000 15.3 14.9 (70,000) 24.33 1.3% 1.1

Pittsburgh, PA 17,300,000 8.1 7.6 352,000 22.69 1.7% 8.6

Washington DC 134,615,000 15.3 15.5 49,000 32.29 2.8% 3.0

Westchester County, NY 18,276,000 14.9 16.4 (13,000) 27.05 -0.6% -1.3

NORTHEAST TOTAL/AVERAGE 501,326,000 15.1 15.2 785,000 27.14 1.8% 2.3

SOUTH

Atlanta, GA 78,622,000 17.4 17.2 352,000 21.64 -0.5% -1.5

Charleston, SC 3,943,000 10.8 11.5 49,000 23.13 -2.8% 0.3

Charlotte, NC 18,451,000 16.0 15.6 (13,000) 21.64 0.7% 7.1

Columbia, SC 888,000 12.9 13.2 81,000 17.46 1.3% 0.6

Dallas/Fort Worth, TX 91,879,000 16.9 17.0 (70,000) 25.00 1.0% 1.0

Ft. Lauderdale-Broward, FL 10,739,000 20.0 19.1 352,000 27.68 -0.5% -3.0

Houston, TX 67,598,000 14.4 12.4 49,000 28.86 5.6% 7.2

Jacksonville, FL 9,204,000 8.8 10.4 (13,000) 19.98 -1.6% 1.8

Little Rock, AR 2,847,000 12.3 19.1 81,000 19.14 3.3% 3.3

Memphis, TN 15,952,000 8.4 8.5 (70,000) 43.34 0.2% 1.9

Miami-Dade, FL 15,568,000 21.3 20.0 352,000 31.50 0.1% -1.5

Nashville, TN 13,484,000 6.8 5.3 49,000 21.83 -0.1% -2.3

Oklahoma City, OK 2,669,000 12.6 8.8 (13,000) 19.91 9.8% N/

Orlando, FL 16,855,000 19.7 19.1 81,000 21.99 0.0% -2.5

Raleigh/Durham/Chapel Hill, NC 25,677,000 16.4 15.9 (70,000) 21.53 -1.9% -0.7

Savannah, GA 490,000 28.0 22.6 352,000 22.62 0.0% N/

Tampa Bay, FL 23,476,000 16.4 17.3 49,000 23.03 -1.1% -0.1

West Palm Beach/Palm Beach County,FL

9,175,000 17.9 19.1 (13,000) 30.14 -1.4% -0.3

SOUTH TOTAL/AVERAGE 407,517,000 15.9 15.5 1,585,000 24.36 1.1% 1.1

MIDWEST

Chicago, IL 75,536,000 18.2 18.2 (70,000) 27.30 0.4% -0.1

Cincinnati, OH 14,897,000 23.3 19.4 352,000 20.37 -0.6% 1.0

Cleveland, OH 13,174,000 10.9 10.5 49,000 21.23 -2.4% -1.6

Columbus, OH 17,977,000 10.7 10.7 (13,000) 18.31 4.9% 5.6

Detroit, MI 25,548,000 19.6 19.1 81,000 21.33 -0.8% -3.7


13/16



UNITED STATES | SUBURBAN OFFICE | CLASS A

MARKET


MAR. ,

VACANCYRATE (%)

DEC. ,

VACANCYRATE (%)

MAR. ,

ABSORPTIONQ

(SF)

AVERAGE ANNUALQUOTED RENT (USDPSF) MAR ,

QUARTERLYCHANGE IN RENT

(%)

ANNUALCHANGE I

RENT(%)

Grand Rapids, MI 958,000 30.5 28.6 (70,000) 19.33 0.5% 3.4

Indianapolis, IN 12,403,000 19.7 19.5 352,000 18.11 -1.1% -5.8Kansas City, MO 14,932,000 13.8 13.7 49,000 20.25 -0.6% -1.7

Minneapolis, MN 25,466,000 15.3 15.0 (13,000) 14.17 2.2% N/

Omaha, NE 4,141,000 5.6 5.4 81,000 25.63 -0.6% -1.5

St. Louis, MO 26,028,000 13.4 10.0 (70,000) 22.01 -0.9% 0.9

MIDWEST TOTAL/AVERAGE 231,060,000 16.5 15.7 728,000 22.09 0.2% -3.5

WEST

Bakerseld, CA 2,698,000 5.5 4.8 352,000 24.00 0.0% 0.0

Boise, ID 4,620,000 24.4 21.2 49,000 17.10 0.3% -5.0

Denver, CO 33,601,000 13.3 13.1 (13,000) 22.77 3.2% 5.9

Faireld, CA 1,837,000 24.9 23.6 81,000 26.08 4.0% 2.0

Fresno, CA 3,943,000 18.7 20.2 (70,000) 25.20 0.0% 0.0

Las Vegas, NV 5,079,000 36.8 35.0 352,000 29.36 -1.5% -6.4

Los AngelesInland Empire, CA 5,054,000 28.3 27.2 49,000 23.04 0.0% -4.5

Los Angeles, CA 102,115,000 18.3 18.1 (13,000) 33.48 0.0% -3.1

Oakland, CA 3,771,000 20.7 22.7 81,000 26.28 -1.4% 1.4

Orange County, CA 32,835,000 19.7 20.2 (70,000) 22.92 -10.7% -12.0

Phoenix, AZ 30,352,000 24.7 24.3 352,000 22.88 -0.3% -3.7

Portland, OR 10,815,000 15.1 14.5 49,000 23.46 -0.8% 1.0

Reno, NV 799,000 17.9 19.5 (13,000) 16.69 -16.7% -16.2

Sacramento, CA 16,060,000 22.9 23.7 81,000 22.38 -0.7% -5.2

San Diego, CA 23,975,000 13.3 12.4 (70,000) 31.68 0.4% 0.4

San Francisco Peninsula 22,262,000 10.7 11.5 352,000 41.88 10.8% 26.4

San JoseSilicon Valley 26,235,000 15.6 14.3 49,000 36.96 2.3% 8.5

Seattle/Puget Sound, WA 26,672,000 15.0 14.8 (13,000) 31.47 0.4% 1.3

Walnut Creek/Pleasanton, CA 16,238,000 12.2 12.6 81,000 23.76 5.3% 4.2

WEST TOTAL/AVERAGE 368,961,000 17.6 17.4 1,666,000 29.27 0.7% 0.7

U.S. TOTAL/AVERAGE 1,508,864,000 16.2 15.9 4,764,000 26.14 1.1% 0.7




CANADA | DOWNTOWN OFFICE | ALL INVENTORY

MARKET


MAR. ,

NEW SUPPLYQ

(SF)

UNDERCONSTRUCTION

SF

VACANCYRATE (%)

DEC. ,

VACANCYRATE (%)

MAR. ,

ABSORPTIONQ

(SF)

Calgary, AB 38,591,000 950,000 1,791,000 4.5 4.2 859,000

Edmonton, AB 11,284,000 - - 11.1 10.7 27,000

Guelph, ON 383,000 - 12,000 15.4 10.8 17,000

Haliax, NS 4,693,000 5,000 100,000 11.8 13.2 (61,000)

Montral, QC 49,429,000 - 304,000 5.6 5.4 77,000

Ottawa, ON 15,527,000 - 360,000 6.1 6.2 (15,000)

Regina, SK 3,434,000 - 280,000 1.7 1.7 (1,000)

Saskatoon, SK 2,099,000 - 230,000 2.4 1.8 13,000

Toronto, ON 70,273,000 - 1,573,000 5.1 4.1 349,000

Vancouver, BC 24,384,000 - 1,143,000 3.5 3.8 (97,000)

Victoria, BC* 4,938,000 - - 7.7 7.7 -

Waterloo Region, ON 3,597,000 - 176,000 12.6 11.3 45,000

CANADA TOTAL/AVERAGE 228,632,000 955,000 5,969,000 5.5 5.2 1,213,000

CANADA | DOWNTOWN OFFICE | CLASS A

MARKET

EXISTINGINVENTORY (SF)MAR. ,

VACANCYRATE (%)DEC. ,

VACANCYRATE (%)MAR. ,

ABSORPTIONQ

(SF)


(CAD PSF)MAR. ,

QUARTERLYCHANGEIN RENT

(%)

ANNUALCHANGEIN RENT

(%)

Calgary, AB 25,757,000 1.5 1.9 858,000 58.00 4.7% 46.8%

Edmonton, AB 8,879,000 9.1 8.7 24,000 41.43 3.8% 5.6%

Guelph, ON 203,000 0.0 0.0 - 23.10 0.0% 0.0%

Haliax, NS 1,934,000 7.0 10.3 (57,000) 32.36 1.7% 0.0%

Montral, QC 23,076,000 5.2 5.1 18,000 42.00 0.0% 13.5%

Ottawa, ON 9,536,000 5.8 5.8 - 48.36 0.0% -0.1%

Regina, SK 875,000 1.9 1.9 - 38.90 5.1% 4.9%

Saskatoon, SK 492,000 0.9 0.9 - 37.00 0.0% 8.8%

Toronto, ON 37,315,000 5.2 4.6 340,000 53.66 0.7% -3.6%

Vancouver, BC 9,990,000 2.4 2.4 (15,000) 55.00 0.9% 2.8%

Victoria, BC* 821,000 7.5 7.5 - 37.78 0.0% N/A

Waterloo Region, ON 1,427,000 6.7 4.7 28,000 25.92 0.2% 11.9%

CANADA TOTAL/AVERAGE 120,305,000 4.6 4.4 1,196,000 50.13 1.8% 9.1%

* Victoria, BC year end is Q


15/16



CANADA | SUBURBAN OFFICE | ALL INVENTORY

MARKET


MAR. ,

NEW SUPPLYQ

(SF)

UNDERCONSTRUCTION

(SF)

VACANCYRATE (%)

DEC. ,

VACANCYRATE (%)

MAR. ,

ABSORPTIONQ

(SF)

Calgary, AB 23,800,000 - 1,214,000 9.4 8.4 329,000

Edmonton, AB 8,993,000 85,000 279,000 13.0 11.9 137,000

Guelph, ON 1,383,000 - - 4.4 4.7 (4,000)

Haliax, NS 6,668,000 256,000 130,000 10.0 11.9 101,000

Montral, QC 23,771,000 - 298,000 9.8 8.6 182,000

Ottawa, ON 21,008,000 36,000 122,000 8.1 8.5 (97,000)

Regina, SK 678,000 - - 0.1 0.1 -

Toronto, ON 68,278,000 104,000 664,000 7.0 6.5 454,000

Vancouver, BC 27,678,000 200,000 1,141,000 10.9 11.2 82,000

Victoria, BC* 3,593,000 - 95,000 9.1 9.1 -

Waterloo Region, ON 6,732,000 322,000 207,000 12.9 12.0 329,000

CANADA TOTAL/AVERAGE 192,582,000 1,003,000 4,150,000 8.9 8.5 1,513,000

CANADA | SUBURBAN OFFICE | CLASS A

MARKET


MAR. ,

VACANCYRATE (%)DEC. ,

VACANCYRATE (%)MAR. ,

ABSORPTIONQ

(SF)

AVERAGE ANNUALQUOTED RENT

(CAD PSF)MAR. ,

QUARTERLYCHANGEIN RENT

(%)

ANNUAL CHANGIN RENT

(%)

Calgary, AB 11,104,366 7.8 6.6 145,792 42.00 2.4% 13.5

Edmonton, AB 847,668 3.0 4.0 - 25.96 0.6% 1.4

Guelph, ON 2,739,210 8.6 9.7 (8,440) 29.48 4.8% 4.1

Haliax, NS 13,336,192 8.0 7.1 28,702 28.00 0.0% -6.7

Montral, QC 11,980,116 8.5 8.6 124,861 31.26 0.0% -4.3

Ottawa, ON 677,530 0.1 0.1 (18,493) 28.50 0.0% 0.0

Regina, SK 31,029,906 8.3 7.1 - 29.57 0.7% -2.8

Toronto, ON 13,426,379 11.5 12.2 238,752 36.25 0.7% -5.8

Vancouver, BC 817,488 8.7 8.7 52,594 40.00 0.0% N/

Victoria, BC* 3,174,920 16.3 16.3 - 24.20 -0.7% 5.1

Waterloo Region, ON 89,133,775 8.8 8.4 270,813 31.98 0.8% 0.4

Canada Total 89,133,775 8.8 8.4 834,581 31.98 0.8% .4%

Inventory Includes all existing multi- or single-

tenant leased and owner-occupied oce properties

greater than or equal to , square eet (netrentable area). In some larger markets this minimum

size threshold may vary up to , square eet.

Does not include medical or government buildings.

Vacancy Rate Percentage o total inventory

physically vacant as o the survey date, including

direct vacant and sublease space.

Absorption Net change in physically occupied

space over a given period o time.

New Supply Includes completed speculative and

build-to-suit construction. New supply quoted on a

net basis ater any demolitions or conversions.

Annual Quoted Rent Includes all costs associated

with occupying a ull foor in the mid-rise portion o

a Class A building, inclusive o taxes, insurance,maintenance, janitorial and utilities (electricity

surcharges added where applicable). All oce rents

in this report are quoted on an annual, gross persquare oot basis. Rent calculations do not include

sublease space.

Cap Rate (Or going-in cap rate) Capitalization

rates in this survey are based on multi-tenant

institutional grade buildings ully leased at marketrents. Cap rates are calculated by dividing net

operating income (NOI) by purchase price.

Note: SF = square eetMSF = million square eet

PSF = per square oot

CBD = central business district

Glossary

* Victoria, BC year end is Q


16/16


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oces in countries on continents

United States: Canada:

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$1.8 billion in annual revenue

1.25 billion square feet undermanagement

Over 12,300 professionals

Copyright Colliers International.

The inormation contained herein has been obtained

rom sources deemed reliable. While every reasonable

eort has been made to ensure its accuracy, we cann

guarantee it. No responsibility is assumed or any

inaccuracies. Readers are encouraged to consult their

proessional advisors prior to acting on any o the

material contained in this report.

Accelerating success

UNITED STATES | OFFICE INVESTMENT

MARKET

CBD SALESPRICE

(USD PSF)

CBDCAP RATE

(%)

SUBURBANSALES PRICE

(USD PSF)

SUBURBANCAP RATE

(%)

Atlanta, GA 100.00 8.20 131.00 9.00

Baltimore, MD 112.09 9.50

Boston, MA 474.00 5.50 107.00 8.50

Charleston, SC 250.00 8.00 135.00 11.00

Chicago, IL 350.00 6.50 225.00 7.25

Cincinnati, OH 125.00 9.75 137.50 9.50

Dallas/Fort Worth, TX - - 140.00 7.90

Denver, CO 238.00 6.50 179.00 8.00

Detroit, MI 35.00 47.50

Faireld County, CT - - 95.00 8.00

Fresno, CA 105.00 9.00 140.00 8.50

Ft. Lauderdale-Broward, FL 234.00 141.00

Grand Rapids, MI 125.00 9.20 110.00 9.00

Hartord, CT 112.00 8.90 -

Houston, TX - - 125.00 8.00

Indianapolis, IN 160.00 8.10 145.00 7.30Las Vegas, NV - - 116.00 -

Little Rock, AR 88.00 9.50 110.00 9.25

Long Island, NY - - 210.29 7.58

Los Angeles - Inland Empire, CA - - 175.00 8.00

Los Angeles, CA 250.00 6.60 225.00 8.60

Miami-Dade, FL - - 141.00

Minneapolis, MN - - 127.67 8.00

Nashville, TN 94.42 - 106.65

New Jersey - Central - - 120.86 8.05

New Jersey - Northern - - 188.55 7.42

New York, NY - Downtown Manhattan 290.00 5.00 - -

New York, NY - Midtown Manhattan 741.00 4.70 - -

New York, NY - Midtown South Manhattan 413.00 5.00 - -

Oakland, CA - 8.00 110.49 9.00

Oklahoma City, OK 64.00 - 81.33 10.24

Orange County, CA - - 300.00 7.00

Orlando, FL 205.00 9.00 150.00 8.20

Philadelphia, PA 130.00 8.00 162.00 8.00

Phoenix, AZ 60.00 77.00 8.30

Pittsburgh, PA 120.00 8.26 110.00 8.50

Portland, OR 313.34 77.33

San Diego, CA 79.26 230.27 7.00

San Francisco Peninsula 250.00 6.50

San Francisco, CA 418.00 6.00

San Jose - Silicon Valley 350.00 6.00Savannah, GA 150.00 9.50 120.00 9.75

Seattle/Puget Sound, WA 298.48 7.68 184.45 7.53

St. Louis, MO 95.00 9.25 130.00 8.50

Stamord, CT 350.00 8.00 - -

Stockton, CA 142.50 8.60 - -

Tampa Bay, FL - - 116.00 9.00

Walnut Creek/Pleasanton, CA 120.00 8.00 90.00 8.50

Washington DC 650.00 5.75 240.00 7.25

West Palm Beach/Palm Beach County, FL 73.00 - 133.00 -

Westchester County, NY - - 133.00 8.00

White Plains, NY 350.00 8.00 - -

na office highlights q1 2012

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