q4 2015 chicago suburban office market report

Finishing On A High Note

Research & Forecast Report

SUBURBAN CHICAGO | OFFICEFourth Quarter 2015

Ronna Larsen Research Manager | Suburban Chicago

The Chicago suburban office market ended 2015 on a high note, reporting over one million square feet of positive net absorption for the first time in ten years.While some submarkets have gained more momentum than others, Chicago’s suburban market continued to regain its strength throughout 2015. Over one million square feet of notable new lease transactions were signed in 2015. In addition, the suburbs witnessed 17 new lease transactions greater than 25,000 square feet in 2015 compared to just 10 in 2014.

Trends

The velocity of investment and user sales throughout the suburban office market continued throughout 2015. Notable transactions included GE Capital/Arden’s seven-property, 3.6 million-square-foot portfolio sale to The Blackstone Group, GE Capital/Arden’s four-property, 697,672-square-foot portfolio to Cornerstone Realty Advisors and Wells Fargo/Hudson Advisors’ 423,369-square-foot, four-building portfolio sale to Walton Street Capital/Glenstar. In addition, several investment properties were added to the market in 2015, including seven in the fourth quarter alone.

Landlords of existing inventory struggle to make their properties relevant as today’s tenants demand a more efficient work environment. Amenities such as employee wellness / fitness centers, food service, tenant lounges and conference centers are now becoming standard. Those high quality, true Class A assets with these features are a hot commodity.

In addition, 4.00/1,000 parking ratios that were once standard are no longer able to accommodate some users. While some properties such as Continental Towers have taken on the expense of adding parking garages, others continue to offer aggressive concessions and rental rates.

Vacancy

Overall vacancy in the suburban office market reached pre-recession levels, ending the year at 19.6 percent compared to 20.7 percent at the end of 2014. While the O’Hare and North markets showed significant improvement, the Lisle-Naperville market reported the lowest vacancy of all the submarkets with 18.0 percent.

Vacancy in Class A properties reached a seven-year low, ending 2015 at 18.4 percent, down from 19.6 percent at the end of 2014. When considering high quality, true Class A assets, the improvement in vacancy is more significant at 16.0 percent, compared to 18.3 at the end of 2014. Sublease vacancy witnessed a decrease in 2015 as well, dropping to 1.2 percent from 1.8 percent at the end of 2014.

Absorption

Overall net absorption ended 2015 with positive 1,241,667 square feet, a vast improvement from year-end 2014’s total

Market IndicatorsRelative to prior periods Q4 2014 Q3 2015 CURRENT

VACANCY 20.7% 20.1% 19.6%

YTD ABSORPTION (193,623) 720,685 1,241,667

RENTAL RATE $20.00 $20.14 $20.34

INVENTORY 115,446,030 115,446,030 115,440,030

Class A Large Blocks of Space20,000 SF + 50,000 SF + 100,000 SF + 200,000 SF +

O'Hare 14 9 3 0

Northwest 36 19 11 5

North 36 13 7 4

Lisle-Naperville 19 8 3 3

Oak Brook 25 10 3 1

Total 130 59 27 13

2 Research & Forecast Report | Fourth Quarter 2015 | Suburban Chicago / Office | Colliers International

of negative 193,623 square feet. Larger tenant movement including Baxalta and PSAV were major contributors to the increase of absorption.

Class A properties alone achieved 839,963 square feet of positive net absorption compared to negative 381,310 square feet at the end of 2014.

Large Blocks of Availability

There are currently 37 properties in the suburban office market that can accommodate large (100,000 square feet and above) users. 27 of those properties are Class A. While large blocks of space in the O’Hare and Oak Brook markets are limited, the Northwest market offers the majority of options.

Rents

Average Class A asking rents increased in 2015, rising to $28.40 per square foot gross, up from $27.70 per square foot gross at year-end 2014.

The average asking rent for all classes in suburban Chicago ended 2014 at $20.34 per square foot gross, up from 2014’s rate of $20.14.

Construction

While there hasn’t been any speculative construction delivered since 2010 and none is expected in 2016, build-to-suit activity continued within the suburban market. Most notably, Zurich North America’s 735,000-square-foot headquarters at Meacham Road and Interstate 90 in Schaumburg is still underway. In addition, American Academy of Pediatrics is expected to break ground on a 200,000-square-foot build-to-suit development at Park Boulevard and Pierce Road in Itasca early in 2016 and Chamberlain Group, a division of Duchossois Group, is building a 252,600-square-foot office development on the land it acquired from Follett Corporation on Swift Drive in Oak Brook.

What To Expect in 2016 > True Class A properties with amenities will continue to drive the market in 2016.

> We will see a continued increase in Class A rental rates, while Class B rates will begin a slow ascent.

> Investment sale activity will remain steady.

> A modest increase in absorption is expected.

1,241,667

(193,623)

617,277

426,989

(222,455)

550,552

19.6%

20.7%

20.5%

21.0%

21.4%

21.2%

19.4%

19.6%

19.8%

20.0%

20.2%

20.4%

20.6%

20.8%

21.0%

21.2%

21.4%

21.6%

(400,000)

(200,000)

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

201520142013201220112010

Net Absorption & VacancyOverall Suburban Office

Absorption VacancySource: Costar; Colliers International Research

Net Absorption and Vacancy | Suburban Office Market

Asking Gross Rental Rates

$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

$35.00

201520142013201220112010

Asking Gross Rental RatesOverall Suburban Office

Source: Costar; Colliers International Research

21.2%22.1%

18.2% 17.9%

22.8%

19.6%21.1% 21.8%

17.4%

21.8%

18.9%

21.7%

18.4% 18.0%19.8%

-5.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

O'Hare Northwest North Lisle/Naperville Oak Brook

Vaca

ncy

(%)

Submarket Vacancy Rates2013 - 2015

2013 2014 2015


Submarket Vacancy Rates | 2013 - 2015


Tenants In The Market | Active Requirements

Lake Michigan

0 1 5 10 miles

NORTH

94

94

94

94

94

9457

294

80

80

55

55

55

355

294

290

290

290

88

88

355

294

90

90

90

90

90

190

41

Elgin-O

'Hare Expy.

East-West Tollway

45

45

41

41

45

12 20

45

34

34

12

12

14

83 60

8322

68

7262

21

5953

58

20

3120

64 53

64

83

59

43

504353

53

171

7 50

Lake Cook Rd.

WAUCONDA LIBERTYVILLE

VERNON HILLS

LINCOLNSHIRE

DEERFIELD

NORTHBROOK

GLENVIEW

BUFFALO GROVEBARRINGTON

SLEEPYHOLLOW

ELGIN

ROLLINGMEADOWS

ARLINGTONHEIGHTS

MOUNT PROSPECT

HOFFMANESTATES

SCHAUMBURGELK GROVE

VILLAGE

SKOKIE

ITASCA

CAROL STREAM

ST. CHARLESADDISON

ELMHURST

OAKBROOK

LOMBARD

OAK PARK

CICERO

AURORA NAPERVILLE LISLE DOWNERS GROVE HINSDALE

BOLINGBROOK

ORLANDPARK

MATTESON CHICAGOHEIGHTS

PARK FOREST

CHICAGO

LAKE FOREST

HIGHLAND PARK

WINNETKA

WILMETTE

EVANSTON

ROSEMONT

WEST CHICAGOBATAVIA

PLAINFIELD

HARVARD

MCHENRY

CRYSTAL LAKE

MARENGO

HUNTLEY

CARY

PLEASANT PRAIRIE

GURNEEWAUKEGAN

NORTH CHICAGOGRAYSLAKE

LAKE ZURICH

HANOVER PARK

FRANKLIN PARK

MELROSE PARK

BROADVIEW

McCOOK

BEDFORD PARKBURR RIDGE

WOODRIDGE

ROMEOVILLEALSIP

TINLEY PARK

SOUTH HOLLAND

GARY

HAMMOND

LANSING

JOLIET

MINOOKA UNIVERSITY PARK

ELWOOD

NEW LENOX

MONEE

KANE CO.

KEND

ALL

CO.

WIL

L CO

.

KENDALL CO. WILL CO.

WIL

L CO

.

COO

K CO

.

WILL CO.

COOK CO.

WIL

L CO

.

COO

K CO

.

KANE

CO

.

DuPA

GE C

O.

DuPA

GE C

O.

COO

K CO

.

COOK CO.DuPAGE CO.

COOK CO.

LAKE CO.

McH

ENRY

CO

.

ILLINOISWISCONSIN

KENDALL CO.GRUNDY CO.

GRU

NDY

CO.

WIL

L CO

.

KANE

CO

.

ILLI

NOIS

INDI

ANA

PALWAUKEEFIELD

O'HAREINTERNATIONAL

AIRPORT

MIDWAYAIRPORT

Northwest1,494,000 SF

North1,055,000 SF

East-West1,115,000 SF

O’Hare596,000 SF

Encouraging news for landlords in the Northwest market is the active tenants there need nearly 1.5 million square feet of space. Only time will tell if these tenants will defect to other submarkets or remain in place.


Significant Lease and Sale Activity

Top Suburban Office Leasing Activity 4Q 2015TENANT BUILDING TOWN SUBMARKET CLASS SIZE (SF) DEAL TYPE

Horizon Pharma* Landmark of Lake Forest Lake Forest N A 133,000 Sublease

Donlen 3000 Lakeside Dr Vernon Hills N A 73,000 New

MultiPlan Washington Pointe Naperville LN A 68,000 Renewal

Wistron Mobile Solutions* Meadows Corporate Center Rolling Meadows NW A 55,500 New

Option Care 3000 Lakeside Dr Vernon Hills N A 47,000 New

Abbott Molecular 1350 Touhy Plaza Des Plaines O B 40,500 New

Rail Europe 1350 Touhy Plaza Des Plaines O B 23,500 New

Avnet* Prairie Stone Business Center Hoffman Estates NW B 23,000 Renewal

Solo Cup* Tri-State International Lincolnshire N A 23,000 New

One Point Patient Care* North Grove Corporate Center Morton Grove N B 17,000 Renewal

Upp Technology* Oakbrook Terrace Tower Oakbrook Terrace OB A 15,500 Sublease

Connor & Gallagher Insurance Services Corporetum III Lisle LN A 15,500 New

Ceannate O'Hare International Center Rosemont O A 15,000 New

Top Suburban Office Investment Sales Activity 4Q 2015STATUS PROPERTY TOWN SUBMKT CLASS SIZE (SF) SALE PRICE PRICE/SF BUYER SELLER

Sold Bannockburn Lakes I-IV Bannockburn N A 423,369 $27,450,000.00 $64.84 Walton Street Capital/Glenstar

Wells Fargo/Hudson Advisors

Sold Highland Pointe Lombard OB A 388,604 $44,000,000.00 $113.22 Hamilton Partners LaSalle Investment Management

Sold One O'Hare Centre Rosemont O A 380,360 $83,000,000.00 $218.21 MDC/Nicola Crosby Real Estate CBRE Investors

Sold Highland Landmark V Downers Grove OB A 250,545 $71,600,000.00 $285.78 Adventus Realty Services, Inc.

Cornerstone Real Estate Advisors

Sold 1600 Corporate Center Rolling Meadows NW A 253,500 $16,000,000.00 $63.12 Helios Property Management

C-III Asset Management

Sold Edens Corporate Center Northbrook N A 181,330 $30,200,000.00 $160.60 KBS Realty Advisors The Davis Companies

New Woodfield Corporate Center Schaumburg NW A 532,972 TBD TBD TBD MassMutual Life Insurance

New 90, 98, 100 Half Day Road Lincolnshire N A 343,000 TBD TBD TBD Medline Industries

New Parkview Plaza Oakbrook Terrace OB A 264,162 TBD TBD TBD TIAA-CREF

New Estancia Corporate Centre Burr Ridge OB A 167,401 TBD TBD TBD BJF Estancia, LLC

New Summit Oaks Oakbrook Terrace OB B 91,844 TBD TBD TBD WH&H Realty Advisors/Blue Vista

New Terrace Oaks Oakbrook Terrace OB B 55,829 TBD TBD TBD Terrace Oaks Associates

New Keystone Office Center Rolling Meadows NW B 60,100 TBD TBD TBD LeasePlan USA

UC 3 Lakes Dr Northfield N B 679,000 TBD TBD TBD W.P. Carey

UC Concourse Office Plaza Skokie N A 294,073 TBD TBD TBD Lionstone Investments

*Colliers International Transaction

LN=Lisle/Naperville N=North NW=Northwest OB=Oak Brook Area O=O’Hare FS=For Sale NEW=New to Market UC=Under Contract

O’HareDespite being the smallest of the suburban office markets, O’Hare continues to attract corporate users with its convenient highway access and proximity to O’Hare International Airport. When companies, particularly national firms, are faced with consolidating locations in the Metropolitan Chicago area, they typically give strong consideration to the O’Hare market as it is well suited for regional operations and its location is ideal for serving virtually any suburban market. Vacancy

The O’Hare market continued to improve throughout 2015, ending the year with 18.9 percent overall vacancy, down from 19.6 percent at the end of 2014. Class A vacancy ended the year at 14.7 percent, down from 16.3 percent at the end of 2014. This marks the lowest Class A vacancy in O’Hare since year-end 2000. Although the O’Hare market’s Class B properties peaked at 27.6 percent earlier in the year, they also showed improvement, ending the year at 26.3 percent.

Sublease vacancy remained low at 0.5 percent, up slightly from 0.4 reported at year-end 2014.

Absorption

Although the O’Hare market had a rough start, it ended the year strong with 97,489 square feet of positive net absorption. The bulk of the positive absorption came from Class A properties which reported 135,121 square feet of positive absorption, the strongest year-end absorption in the past four years.

97,489

208,141

71,224

141,967

(43,073)

378,270

18.9%19.6%

21.2%21.7%22.8%22.5%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

(100,000)

(50,000)

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

201520142013201220112010

Net Absorption & VacancyO'Hare Submarket


Class A8,128,975 SF14.7% Vacant

Class B4,798,093 SF26.3% Vacant

Class C304,430 SF

14.1% Vacant

Class A Class B Class C

Vacant Space By Property Type

Net Absorption and Vacancy | O’Hare Office Market


VACANCY 19.6% 19.5% 18.9%

YTD ABSORPTION 208,141 10,693 97,489

RENTAL RATE $20.65 $20.84 $21.19

INVENTORY 13,231,498 13,231,498 13,231,498

161,676

144,913

143,525

119,228

92,166

88,881

66,274

62,063

59,710

58,140

9600 W Bryn Mawr Avenue

1350 E Touhy Avenue

5450 N Cumberland Avenue

8420 W Bryn Mawr Avenue

8750 W Higgins Road

8725 W Higgins Road

10255 W Higgins Road

9801 W Higgins Road

999 E Touhy Avenue

9550 W Higgins *Sublease



Options for large space requirements in the O’Hare market are limited. There are currently only four properties that can accommodate large (100,000 square feet and above) users, three of which are Class A.

Rents

Rental rates in the O’Hare market continued to rise in 2016, reaching pre-recession levels.

Class A average asking rent in the O’Hare market increased to $30.75 per square foot gross, compared to year-end 2014, when it averaged $29.86.

The average asking rate for all classes also increased, rising to $21.19 per square foot gross, up from $20.65 at year-end 2014.

Construction

No new speculative construction was completed in the O’Hare market during 2015 and none is expected in 2016.

Proposed projects include Pointe O’Hare II and O’Hare Corporate Campus, both in Rosemont. If completed, these projects could add 1.4 million square feet to the O’Hare market. In addition, Hosts Hotels & Resorts, Inc. is currently trying to obtain a zoning amendment to develop a 750,000-square-foot office building on the land next to its O’Hare Marriott property.

What To Expect in 2016

> Vacancy is expected to decrease throughout the O’Hare market, with a more significant decrease coming from Class A assets.

> Class A rental rates are expected to increase due to the lack of large blocks of availability.

> No significant multi-tenant construction is expected in 2015.


Top O’Hare Office Leasing Activity 4Q 2015TENANT BUILDING TOWN CLASS SIZE (SF) DEAL TYPE

Abbott Molecular 1350 Touhy Plaza Des Plaines B 40,500 New

Rail Europe 1350 Touhy Plaza Des Plaines B 23,500 New

Ceannate O’Hare International Center Rosemont A 15,000 New

Asking Gross Rental Rates | O’Hare Office Market

Top 10 Large Available Blocks by Square Feet

Top O’Hare Office Investment Sales Activity 4Q 2015STATUS PROPERTY TOWN CLASS SIZE (SF) SALE PRICE PRICE/SF BUYER SELLER

Sold One O’Hare Centre Rosemont A 380,360 $83,000,000 $218.21 MDC/Nicola Crosby Real Estate CBRE Investors

$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

$35.00

201520142013201220112010

Asking Gross Rental RatesO'Hare Submarket


CLASS A CLASS B


NorthwestThe Northwest suburban office market has been home to an array of industries, making it the most diverse of the five submarkets. As a result, it was the hardest hit suburban market during the recession as firms began consolidating or altogether closing. Although certain pockets of the submarket have seen improvement in recent years, the Northwest market as a whole continues to struggle.Vacancy

The Northwest market retained the highest vacancy level of all the suburban markets as it ended 2015 with 21.7 percent vacancy, up from 21.1 at year-end 2014. However, this in an improvement from the 23.4 percent it witnessed during the height of the recession.

While Class A properties increased to 18.7 percent from 17.5 percent in 2014, Class B properties decreased slightly, dropping to 27.6 percent from 27.8 percent at year-end 2014. However, when considering high quality, true Class A assets in the Northwest market, there was improvement in vacancy as these assets ended the year at 19.0 percent, compared to 20.8 percent at the end of 2014.

Sublease vacancy remains low in the Northwest market with 0.8 percent vacancy, unchanged from year-end 2014.

Absorption

The Northwest market ended 2015 with 195,728 square feet of negative net absorption, compared to positive 331,754 square feet at year end of 2014.

Class A properties ended 2015 with 223,567 square feet of negative net absorption compared to 298,370 square feet of positive absorption in 2014.

(195,728)

331,754 313,723

104,670

(612,546)

392,957

21.7%

21.1%

22.1%

23.1%

23.4%

21.5%

20.5%

21.0%

21.5%

22.0%

22.5%

23.0%

23.5%

24.0%

(800,000)

(600,000)

(400,000)

(200,000)

0

200,000

400,000

600,000

201520142013201220112010

Net Absorption & VacancyNorthwest Submarket


Class A 19,656,237 SF18.7% Vacant


Class C1,110,727 SF17.5% Vacant



Net Absorption and Vacancy | Northwest Office Market


VACANCY 21.1% 21.5% 21.7%

YTD ABSORPTION 331,754 (118,969) (195,728)

RENTAL RATE $18.10 $18.17 $18.23

INVENTORY 31,748,082 31,748,082 31,748,082



The Northwest market continues to offer the most options for large space requirements with 15 properties that can accommodate large (100,000 square feet and above) users, 10 of them being Class A.

Rents

The Northwest suburban Class A average asking rate measured $24.33 per square foot gross, up from year-end 2014’s rate of $23.85.

The average asking rate for all classes measured $18.23 per square foot gross, up slightly from $18.10 at the end of 2014.

Construction

No new speculative construction was completed in Northwest market during 2015 and none is expected in 2016.

However, construction continues on Zurich North America’s 735,000-square-foot headquarters at Meacham Road and Interstate 90 in Schaumburg. Zurich Insurance will move from its current Schaumburg location in 2016, when the development is completed. In addition, American Academy of Pediatrics is expected to break ground on a 200,000-square-foot build-to-suit development at Park Boulevard and Pierce Road in Itasca early in 2016.


> Class A concessions will hold firm while rents remain flat.

> Investment sales activity will increase.

> With road improvements on Roselle, Meacham, Barrington and the Tollway expected to be completed in the fall of 2016, the Northwest market will become more desirable and convenient to tenants.

> No significant speculative construction is expected, however, build-to-suit activity will persist.

$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

$35.00

201520142013201220112010

Asking Gross Rental RatesNorthwest Submarket


Asking Gross Rental Rates | Northwest Office Market



Top Northwest Office Investment Sales Activity 4Q 2015STATUS PROPERTY TOWN CLASS SIZE (SF) SALE PRICE PRICE/SF BUYER SELLER

New Woodfield Corporate Center Schaumburg A 532,972 TBD TBD TBD MassMutual Life Insurance

Sold 1600 Corporate Center Rolling Meadows A 253,500 $16,000,000.00 $63.12 Helios Property Management

C-III Asset Management

New Keystone Office Center Rolling Meadows B 60,100 TBD TBD TBD LeasePlan USA

Top Northwest Office Leasing Activity 4Q 2015TENANT BUILDING TOWN CLASS SIZE (SF) DEAL TYPE

Wistron Mobile Solutions* Meadows Corporate Center Rolling Meadows A 55,500 Renewal

Avnet* Prairie Stone Business Center Hoffman Estates B 23,000 Renewal


1,300,000

882,069

574,000

328,378

216,592

183,498

145,020

128,663

126,284

125,323

*2000 W AT&T Drive

1400 & 1450 American Lane

2001 Lakewood Boulevard

2 Pierce Place

2550 W Golf Road

1000 E Woodfield Road

21440 Lake Cook Road

1501 E Woodfield Road

5201 Tollview Road

700 N Wood Dale Road *Sublease

CLASS A CLASS B


NorthHome to many corporate users, The North market has primarily attracted tenants for its low Lake County tax rate to the north and its proximity to Downtown Chicago to the south. As some of these larger corporate users began to vacate, the North market suffered its largest vacancy in decades. However, with several large users beginning to expand and return to the market, North market is making a rebound.Vacancy

The North market ended the fourth quarter of 2015 with 18.4 percent overall vacancy, down significantly from year-end 2014 when it reported 21.8 percent overall vacancy. Class A properties reported the most dramatic decrease, dropping to 20.9 percent for 25.5 percent at the end of 2014.

When considering high quality, true Class A assets, the improvement in vacancy is more substantial at 11.8 percent, compared to 20.0 percent at the end of 2014.

Overall sublease vacancy ended 2015 at 1.0 percent, down from 2.6 percent at the end of 2014. Sublease vacancy in the North market is at a sixteen year low.

Absorption

The North market witnessed the most improvement of all the suburban market in 2015, ending the year with positive 995,309 square feet, compared to negative 1,068,397 square feet at year-end 2014.

While all classes achieved positive absorption in the North market in 2015, Class A properties attributed to the majority of the increase, ending 2015 with 854,298 square feet of positive net absorption, compared to negative 1,198,766 square feet at year-end 2014.

995,309

(1,068,397)

249,627 187,724 5,302

(1,680)

18.4%

21.8%

18.2%19.0%19.7%19.7%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

(1,500,000)

(1,000,000)

(500,000)

0

500,000

1,000,000

1,500,000

201520142013201220112010

Net Absorption & VacancyNorth Submarket







Net Absorption and Vacancy | North Office Market


VACANCY 21.8% 19.8% 18.4%

YTD ABSORPTION (1,068,397) 587,637 995,309

RENTAL RATE $21.58 $21.89 $22.02

INVENTORY 28,991,772 28,991,772 28,991,772

966,061

405,039

365,268

304,013

175,545

159,821

120,999

107,984

103,115

85,816

600 N US Highway 45

**1000 Milwaukee Avenue

3100 Sanders Road

2 Overlook Point

300 Tower Parkway

26125 N Riverwoods Boulevard

3600 W Lake Avenue

1 Overlook Point

2355 Waukegan Road

100 S Saunders Road*Sublease**Direct/Sublease Combined

CLASS A CLASS B



There are currently seven blocks of space available for large-sized tenants (100,000 square feet and above), all of them being Class A.

Rents

Asking rates in the North market have achieved pre-recession levels, as average Class A asking rent increased to $30.23 per square foot gross from $29.36 at year-end 2014.

The average asking rate for all classes also increased, rising to $22.02 per square foot gross, compared to year-end 2014 when the overall rate was $21.58 per square foot gross.

Construction

No new speculative construction was completed during 2015 and none is expected in 2016.

There are a few sites available for future build-to-suit projects in the North market, including Janko’s 170,000 square-foot project in Lake Forest. In addition, John Buck Company’s 200,000-square-foot project in Deerfield recently sold to Quadrangle Development for a build-to-suit development.


> Overall vacancy and absorption will remain steady.

> Tenants seeking large blocks will diminish. However, increased activity from small to mid-size tenants is expected.

> Product near Lake-Cook Road, Skokie Boulevard and the Tollway will continue to see an increase in absorption.

> True Class A rents will continue to increase, while Class B rates will remain steady.

$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

$35.00

201520142013201220112010

Asking Gross Rental RatesNorth Submarket


Asking Gross Rental Rates | North Office Market


Top North Office Investment Sales Activity 4Q 2015STATUS PROPERTY TOWN CLASS SIZE (SF) SALE PRICE PRICE/SF BUYER SELLER

Sold Bannockburn Lakes I-IV Bannockburn A 423,369 $27,450,000 $64.84 Walton Street Capital/Glenstar

Wells Fargo/Hudson Advisors

Sold Edens Corporate Center Northbrook A 181,330 $30,200,000 $160.60 KBS Realy Advisors The Davis Companies

New 90, 98, 100 Half Day Road Lincolnshire A 343,000 TBD TBD TBD Medline Industries

UC 3 Lakes Dr Northfield B 679,000 TBD TBD TBD W.P. Carey

UC Concourse Office Plaza Skokie A 294,073 TBD TBD TBD Lionstone Investments

Top North Office Leasing Activity 4Q 2015TENANT BUILDING TOWN CLASS SIZE (SF) DEAL TYPE

Horizon Pharma* Landmark of Lake Forest Lake Forest A 133,000 Sublease

Donlen 3000 Lakeside Drive Vernon Hills A 73,000 New

Option Care 3000 Lakeside Drive Vernon Hills A 47,000 New

Solo Cup* Tri-State International Lincolnshire A 23,000 New

Option Care* 544 Lakeview Pky Vernon Hills A 22,500 New




Lisle-NapervilleThe Lisle-Naperville market, known for its ability to attract technology tenants seeking newer construction and bigger floor plates, continues to retain the lowest vacancy of all the suburban markets.Vacancy

Despite an increase in overall vacancy in the fourth quarter of 2015 as vacancy rose to 18.0 percent from 17.4 percent at the end of 2014, the Lisle-Naperville Market continues to have the healthiest vacancy of all the markets.

Class A assets also witnessed an increase in vacancy, ending 2015 at 15.9 percent, compared to 14.7 percent in 2014.

While sublease vacancy in the Lisle-Naperville market decreased to 2.5 percent in 2015 compared to 3.8 percent at the end of 2014, it remained the highest of the suburbs.

Absorption

The Lisle-Naperville market ended 2015 with 109,629 square feet of positive net absorption, compared to positive 86,346 square feet at year-end 2014.

While Class A properties witnessed negative year-end net absorption of 113,317 square feet, Class B properties ended the year with a modest increase of postive 7,419 square feet.


Six properties in the Lisle-Naperville market can accommodate large (100,000 square feet and above) users, three of which are Class A.

Rents

The average Class A asking rent in the Lisle-Naperville market measured $27.82 per square foot gross at the end of 2015, up from $26.60 per square foot at the end of 2014.

(109,629)

86,346

200,888

37,519

207,178

(151,967)

18.0%

17.4%

17.9%

19.0%19.2%

20.4%

17.0%

17.5%

18.0%

18.5%

19.0%

19.5%

20.0%

20.5%

21.0%

(200,000)

(150,000)

(100,000)

(50,000)

0

50,000

100,000

150,000

200,000

250,000

201520142013201220112010

Net Absorption & VacancyLisle/Naperville Submarket




Class C914,382 SF8.7% Vacant



Net Absorption and Vacancy | Lisle-Naperville Office Market


VACANCY 17.4% 17.8% 18.0%

YTD ABSORPTION 86,346 (73,056) (109,629)

RENTAL RATE $19.93 $19.85 $20.20

INVENTORY 17,991,276 17,991,276 17,991,276


The average asking rate for all classes also increased to $20.20 per square foot gross, up from $19.93 at the end of 2014.

Construction

While no new speculative construction was completed in the Lisle-Naperville market during 2015, developers here are seeking locations for build-to-suit properties.

What To Expect in 2016 > While the transaction velocity of large tenants has subsided, small- to mid-sized tenants will remain active.

> Class A and B asking rates are expected to increase in 2016.

> No speculative development is expected in 2016. However, build-to-suit activity will increase.

> Investment sales activity will remain steady.

CLASS A CLASS B

Asking Gross Rental Rates | Lisle-Naperville Office Market


Top Lisle-Naperville Office Investment Sales Activity 4Q 2015STATUS PROPERTY TOWN CLASS SIZE (SF) SALE PRICE PRICE/SF BUYER SELLER

NO SIGNIFICANT Q4 TRANSACTIONS

Top Lisle-Naperville Office Leasing Activity 4Q 2015TENANT BUILDING TOWN CLASS SIZE (SF) DEAL TYPE

MultiPlan Washington Pointe Naperville A 68,000 Renewal

Connor & Gallagher Insurance Services Corporetum III Lisle A 15,500 New


$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

$35.00

201520142013201220112010

Asking Gross Rental RatesLisle/Naperville Submarket


593,360

360,000

354,000

249,996

205,633

132,134

112,605

96,278

83,792

77,006

2701 Navistar Drive

*6200 S Route 53

263 Shuman Boulevard

4201 Winfield Road

2400 Cabot Drive

2441 Warrenville Road

*750 N Commons Boulevard

4343 Commerce Court

535 E Diehl Road

150 S Lincolnway


*Sublease

CLASS A CLASS B


Oak BrookThe Oak Brook market, which typically attracts smaller tenants in the 10,000- to 20,000-square-foot range and benefits from steady leasing velocity, continued to show improvement throughout 2015.Vacancy

The Oak Brook market ended the fourth quarter of 2015 with an overall vacancy rate of 19.8 percent, down from 21.8 percent at year-end 2014. While the number of large users in the market has dissipated, the Oak Brook market has been able to remain stable as velocity of small- to mid-size users continues to improve.

While both Class A and B properties showed improvement in 2015, Class A achieved the most significant change, down to 21.8 percent from 23.9 percent at year-end 2014.

Sublease vacancy remained stable ending 2015 at 1.4 percent versus 1.5 percent at the end of 2015.

Absorption

The Oak Brook market ended 2015 with 454,226 square feet of positive net absorption, an improvement over year-end 2014’s 248,533 square feet of positive net absorption.

All classes in the Oak Brook market achieved positive year-end absorption.

Large Blocks Of Availability

Four properties in the Oak Brook market can accommodate large (100,000 square feet and above) users. Three of the four properties are Class A.

Rents

Class A average asking rent in the Oak Brook market measured $28.86 per square foot gross at the end of fourth quarter 2015, up from $27.43 per square foot gross at year-end 2014.

The average asking rate for all classes totaled $20.06 per square foot gross, up from $19.72 per square foot gross at year-end 2014.

454,226

248,533

(218,185)

(44,891)

220,684

(67,028)

19.8%

21.8%

22.8%

21.9%21.7%

22.5%

19.5%

20.0%

20.5%

21.0%

21.5%

22.0%

22.5%

23.0%

(300,000)

(200,000)

(100,000)

0

100,000

200,000

300,000

400,000

500,000

201520142013201220112010

Net Absorption & VacancyOak Brook Submarket







Net Absorption and Vacancy | Oak Brook Office Market


VACANCY 21.8% 20.4% 19.8%

YTD ABSORPTION 248,533 314,300 454,226

RENTAL RATE $19.72 $19.93 $20.06

INVENTORY 23,477,402 23,477,402 23,477,402


Construction

No new construction was completed in the Oak Brook market during 2015. However, build-to-suit activity continues as Chamberlain Group, a division of Duchossois Group, is building a 252,600-square-foot office development on the land it acquired from Follett Corporation on Swift Drive in Oak Brook.

What To Expect in 2016 > Class A and B asking rates are expected to increase.

> No speculative development will occur, however, build-to-suit activity will increase.

> While the transaction velocity of large tenants has subsided, small- to mid-sized tenants will remain active.

> Investment sales will remain steady

$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

$35.00

201520142013201220112010

Asking Gross Rental RatesOak Brook Submarket


Asking Gross Rental Rates | Oak Brook Office Market


Top Oak Brook Office Investment Sales Activity 4Q 2015STATUS PROPERTY TOWN CLASS SIZE (SF) SALE PRICE PRICE/SF BUYER SELLER

Sold Highland Pointe Lombard A 388,604 $44,000,000 $113.22 Hamilton Partners LaSalle Investment Management

Sold Highland Landmark V Downers Grove A 250,545 $71,600,000.00 $285.78 Adventus Realty Services, Inc.

Cornerstone Real Estate Advisors

New Parkview Plaza Oakbrook Terrace A 264,162 TBD TBD TBD TIAA-CREF

New Estancia Corporate Centre Burr Ridge A 167,401 TBD TBD TBD BJF Estancia, LLC

New Summit Oaks Oakbrook Terrace B 91,844 TBD TBD TBD WH&H Realty Advisors/Blue Vista

New Terrace Oaks Oakbrook Terrace B 55,829 TBD TBD TBD Terrace Oaks Associates

Top Oak Brook Office Leasing Activity 4Q 2015TENANT BUILDING TOWN CLASS SIZE (SF) DEAL TYPE

Upp Technology* Oakbrook Terrace Tower Oakbrook Terrace A 15,500 Sublease

256,767

149,615

120,156

101,487

95,078

92,932

78,300

74,319

68,000

55,514

700 Oakmont Lane

2655 Warrenville Road

*2707 Butterfield Road

3010 Highland Parkway

747 E 22nd Street

*3333 Finley Road

2000 S Finley Road

3050 Highland Parkway

1000 Royce Boulevard

1111 W 22nd St



*Sublease

CLASS A CLASS B



Fourth Quarter 2015 Office Market Statistics | Local Standards

CLASS BLDGS TOTAL INVENTORY SF

DIRECT VACANCY

RATE

SUBLEASE VACANCY

RATE

VACANCY RATE

CURRENT QTR

VACANCY RATE PRIOR

QTR

QUARTERLY NET ABSORPTION –SF

NET YTD ABSORPTION –SF

COMPLETIONS CURRENT QTR

- SF

UNDER CONSTRUCTION

- SFRENTS

O’HAREClass A 37 8,128,975 13.9% 0.8% 14.7% 14.9% 17,864 135,121 0 0 $30.75

Class B 50 4,798,093 26.3% 0.1% 26.3% 27.7% 67,212 (40,479) 0 0 $19.07

Class C 9 304,430 14.1% 0.0% 14.1% 14.6% 1,720 2,847 0 0 $13.76

Subtotal 96 13,231,498 18.4% 0.5% 18.9% 19.5% 86,796 97,489 0 0 $21.19

NORTHWESTClass A 87 19,656,237 17.5% 1.1% 18.7% 18.2% (86,021) (223,567) 0 0 $24.33

Class B 174 10,981,118 27.3% 0.2% 27.6% 27.6% 3,853 29,911 0 0 $17.00

Class C 27 1,110,727 16.5% 1.0% 17.5% 18.0% 5,409 (2,072) 0 0 $13.37

Subtotal 288 31,748,082 20.9% 0.8% 21.7% 21.5% (76,759) (195,728) 0 0 $18.23

NORTHClass A 108 18,227,812 19.5% 1.3% 20.9% 23.3% 446,301 854,298 0 0 $30.23

Class B 153 9,117,235 14.2% 0.5% 14.7% 14.2% (42,715) 52,773 0 0 $18.96

Class C 32 1,646,725 12.0% 0.0% 12.0% 12.2% 4,086 88,238 0 0 $16.86

Subtotal 293 28,991,772 17.4% 1.0% 18.4% 19.8% 407,672 995,309 0 0 $22.02

LISLE/NAPERVILLEClass A 50 9,735,675 15.5% 0.4% 15.9% 15.3% (60,277) (113,317) 0 0 $27.82

Class B 126 7,341,219 16.6% 5.5% 22.0% 22.4% 23,104 7,419 0 0 $17.40

Class C 24 914,382 8.7% 0.0% 8.7% 8.8% 600 (3,731) 0 0 $15.37

Subtotal 200 17,991,276 15.6% 2.5% 18.0% 17.8% (36,573) (109,629) 0 0 $20.20

OAK BROOKClass A 66 13,225,199 18.0% 0.5% 18.5% 18.8% 40,564 187,428 0 0 $28.86

Class B 147 9,203,330 19.0% 2.8% 21.8% 22.9% 100,896 197,878 0 0 $17.44

Class C 21 1,048,873 18.7% 0.6% 19.3% 19.1% (1,534) 68,920 0 0 $13.87

Subtotal 234 23,477,402 18.4% 1.4% 19.8% 20.4% 139,926 454,226 0 0 $20.06

SUBURBAN TOTALClass A 348 68,973,898 17.4% 0.9% 18.4% 18.9% 358,431 839,963 0 0 $28.40

Class B 650 41,440,995 20.6% 1.8% 22.3% 22.7% 152,350 247,502 0 0 $17.97

Class C 113 5,025,137 13.9% 0.3% 14.2% 14.4% 10,281 154,202 0 0 $14.65

Subtotal 1,111 115,440,030 18.4% 1.2% 19.6% 20.1% 521,062 1,241,667 0 0 $20.34

QUARTERLY COMPARISON AND TOTALSQ4-15 1,111 115,440,030 18.4% 1.2% 19.6% 20.1% 521,062 1,241,667 0 0 $20.34Q3-15 1,111 115,440,030 18.6% 1.4% 20.1% 20.6% 648,824 720,605 0 0 $20.14

Q2-15 1,111 115,440,030 19.0% 1.6% 20.6% 20.7% 81,024 71,781 0 0 $20.06

Q1-15 1,111 115,440,030 19.0% 1.7% 20.7% 20.7% (9,243) (9,243) 0 0 $20.02

Q4-14 1,111 115,440,030 18.9% 1.8% 20.7% 20.7% 7,083 (193,623) 0 0 $20.00


Fourth Quarter 2015 Office Market Statistics | Includes Owner Occupied Properties

CLASS BLDGS TOTAL INVENTORY SF

DIRECT VACANCY RATE

SUBLEASE VACANCY RATE

TOTAL VACANCY RATE CURRENT QTR

TOTAL VACANCY RATE

PRIOR QTR

QUARTERLY NET ABSORPTION –SF

NET YTD ABSORPTION –SF

COMPLETIONS CURRENT QTR - SF

UNDER CONSTRUCTION - SF

O’HAREClass A 40 8,500,582 13.4% 0.8% 14.1% 14.2% 8,385 125,642 0 0

Class B 61 5,290,398 26.0% 0.2% 26.2% 27.4% 63,812 (33,654) 0 0

Class C 17 653,418 11.2% 0.0% 11.2% 11.2% (132) 4,681 0 0

Subtotal 118 14,444,398 17.9% 0.5% 18.4% 18.9% 72,065 96,669 0 0

NORTHWESTClass A 100 21,606,486 17.6% 1.0% 18.6% 18.3% (62,321) (196,567) 0 0

Class B 318 16,687,874 21.4% 0.3% 21.8% 22.0% 31,322 (209,094) 0 0

Class C 64 2,083,814 15.9% 0.7% 16.6% 17.1% 16,005 (20,618) 0 0

Subtotal 482 40,378,174 19.1% 0.7% 19.8% 19.8% (14,994) (426,279) 0 0

NORTHClass A 137 23,940,384 17.9% 0.9% 18.8% 19.2% 94,635 503,632 0 0

Class B 278 21,190,324 7.8% 0.4% 8.2% 7.9% (54,786) (74,386) 0 0

Class C 61 2,520,723 10.1% 0.0% 10.1% 10.0% (2,274) 85,851 0 0

Subtotal 476 47,651,431 13.0% 0.6% 13.6% 13.7% 37,575 515,097 0 0

LISLE/NAPERVILLEClass A 56 11,013,178 13.7% 0.4% 14.1% 13.6% (60,277) (113,317) 0 0

Class B 205 11,542,502 12.9% 3.5% 16.4% 16.7% 34,605 40,145 0 0

Class C 54 1,727,043 10.2% 0.0% 10.2% 10.7% 8,837 (3,602) 0 0

Subtotal 315 24,282,723 13.1% 1.8% 14.9% 14.8% (16,835) (76,774) 0 0

OAK BROOKClass A 69 13,724,307 15.9% 0.5% 16.4% 16.8% 56,818 212,973 0 0

Class B 222 12,815,580 15.4% 2.1% 17.5% 17.9% 51,173 110,824 0 0

Class C 50 1,958,358 13.9% 0.4% 14.2% 14.1% (2,736) 74,795 0 0

Subtotal 341 28,498,245 15.5% 1.2% 16.7% 17.1% 105,255 398,592 0 0

SUBURBAN TOTALClass A 402 78,784,937 16.4% 0.8% 17.2% 17.2% 37,240 532,363 0 0

Class B 1,084 67,526,678 14.9% 1.2% 16.0% 16.4% 126,126 (166,165) 0 0

Class C 246 8,943,356 12.4% 0.2% 12.6% 12.8% 19,700 141,107 0 0

Subtotal 1,732 155,254,971 15.5% 0.9% 16.4% 16.6% 178,390 613,233 0 0

QUARTERLY COMPARISON AND TOTALSQ4-15 1,732 155,254,971 15.5% 0.9% 16.4% 16.6% 178,390 613,233 0 0Q3-15 1,732 155,254,971 15.4% 1.1% 16.6% 16.9% 516,223 434,843 0 0

Q2-15 1,732 155,254,971 15.7% 1.2% 16.9% 16.9% 4,493 (191,984) 0 0

Q1-15 1,732 155,254,971 15.6% 1.3% 16.9% 16.8% (85,873) (196,477) 26,000 0

Q4-14 1,731 155,228,971 15.4% 1.4% 16.8% 16.9% 348,751 608,176 180,000 26,000


TOP LEASE TRANSACTIONS OF 2015 | SUBURBAN CHICAGO

ADDRESS TOWN SUBMARKET CLASS SIZE (SF) TYPE QUARTER

Baxalta* 1200 Lakeside Dr Bannockburn N A 260,000 New 1Q2015

Ulta* Tallgrass Corporate Center Bolingbrook LN A 206,500 Renewal 1Q2015

United Stationers Supply* One Parkway North Deerfield N A 200,000 Renewal 2Q2015

HSBC Northwest Crossings Arlington Heights NW B 162,500 New 3Q2015

Verizon Wireless Continental Towers Rolling Meadows NW A 160,000 New 2Q2015

Horizon Pharma* Landmark of Lake Forest Lake Forest N A 133,000 Sublease 4Q2015

American Imaging Management* Corporate 500 Centre Deerfield N A 93,500 Renewal 1Q2015

PSAV* 5100 River Rd Schiller Park O A 75,000 New 1Q2015

Barilla 885 Sunset Ridge Rd Northbrook N B 75,000 New 1Q2015

Donlen 3000 Lakeside Dr Vernon Hills N A 73,000 New 4Q2015

Hartford Insurance 4245 Meridian Pky Aurora LN A 71,000 Renewal 1Q2015

MultiPlan Washington Pointe Naperville LN A 68,000 Renewal 4Q2015

LTD Commodities* Tri-State International Lincolnshire N A 61,500 Renewal 2Q2015

Protective Life* 1707 N Randall Rd Elgin NW A 55,500 Renewal 1Q2015

Wistron Mobile Solutions* Meadows Corporate Center Rolling Meadows NW A 55,500 Renewal 4Q2015

Panasonic Continental Towers Rolling Meadows NW A 49,000 New 1Q2015

NCH Marketing Services* 155 Pfingsten Rd Deerfield N A 48,000 Renewal 2Q2015

Option Care 3000 Lakeside Dr Vernon Hills N A 47,000 New 4Q2015

Inland Real Estate 814 Commerce Dr Oak Brook OB B 45,000 New 3Q2015

Abbott Molecular 1350 Touhy Plaza Des Plaines O B 40,500 New 4Q2015

Accertify Two Pierce Place Itasca NW A 40,000 New 1Q2015

Microsoft Highland Landmark II Downers Grove OB A 37,000 Renewal 1Q2015

Accuity* 1007 Church St Evanston N A 35,000 New 2Q2015

Fullerton Engineering Consultants Woodfield Lake Office Park Schaumburg NW A 32,000 New 3Q2015

Kellen Company Parkview Plaza Oakbrook Terrace OB A 30,500 New 2Q2015

Fleetmatics USA 1600 Corporate Center Rolling Meadows NW A 28,000 Renewal 1Q2015

Reed Elsevier* 1007 Church St Evanston N A 28,000 New 3Q2015

Platinum Mortgage* 2200-2400 Hicks Rd Rolling Meadows NW B 27,000 Renewal 1Q2015

Ceannate 1100 W Lake Cook Rd Buffalo Grove N A 27,000 Expansion 2Q2015

Healthcare Information Services Park Ridge Plaza Park Ridge O B 24,500 Renewal 3Q2015

First Union Rail Riverway Rosemont O A 24,000 New 3Q2015

Portillo's Commerce Plaza Oak Brook OB A 24,000 New 3Q2015

Rail Europe 1350 Touhy Plaza Des Plaines O B 23,500 New 4Q2015

Midwest Orthopaedics at Rush, LLC* Westbrook Corporate Center Westchester OB A 23,000 Renewal 1Q2015

Avnet* Prairie Stone Business Center Hoffman Estates NW B 23,000 Renewal 4Q2015

Solo Cup* Tri-State International Lincolnshire N A 23,000 New 4Q2015

Option Care* 544 Lakeview Pky Vernon Hills N A 22,500 New 4Q2015

Ecra Group Schaumburg Corporate Center Schaumburg NW A 22,500 Sublease 3Q2015

Ex Libris 1350 Touhy Plaza Des Plaines O B 22,000 Renewal 1Q2015

Sedgwick 4245 Meridian Pky Aurora LN A 22,000 New 1Q2015

Nationwide Acceptance Company O'Hare International Center Rosemont O A 22,000 New 3Q2015

Personal Staffing Group ArborLake Centre Deerfield N A 21,000 New 1Q2015

United Healthcare Services* Corporetum Office Campus Lisle LN A 20,500 Renewal 3Q2015

Alliant Credit Union 1600 Corporate Center Rolling Meadows NW A 20,500 Expansion 2Q2015

MetLife Financial Services Presidents Plaza Chicago O A 19,500 Renewal 3Q2015

ComEd One Lincoln Centre Oakbrook Terrace OB A 19,500 Expansion 3Q2015

CNA Insurance Schaumburg Corporate Center Schaumburg NW A 19,000 New 3Q2015




2015 INVESTMENT SALE ACTIVITY | SUBURBAN CHICAGO

STATUS PROPERTY TOWNSUB-MARKET CLASS SIZE (SF) SALE PRICE

PRICE/SF BUYER SELLER QUARTER

Sold 6300 N River Rd Rosemont O B 137,942 $4,675,000.00 $33.89 Village of Rosemont

AAOS 1Q2015

Sold Oak Creek Center Lombard OB B 78,300 $4,100,000.00 $52.36 De Amertek Corporation Trust 104906 1Q2015

Sold Corporetum Office Campus X Lisle LN A 63,409 $3,300,000.00 $52.04 Napleton

Dealership GroupWells Real Estate Funds 1Q2015

Sold Corporate 500 Center Deerfield N A 697,672

$154,000,000.00 $220.73 Cornerstone Realty Advisors GE Capital/Arden 2Q2015

Sold 3333 Finley Rd Downers Grove OB B 236,440 $38,705,153.00 $120.00 Lone Star Funds Columbia Property Trust 2Q2015

Sold 8501 W Higgins Rd Chicago OH B 166,203 $23,250,000.00 $139.89Phoenix International Investment Mgmt

Lowe Enterprises 2Q2015

Sold 1717 Deerfield Rd Deerfield N A 141,186 $8,759,925.00 $62.05 Lone Star Funds Equity Commonwealth 2Q2015

Sold Old Orchard Woods Skokie N B 112,597 $29,500,000.00 $262.00 MB Real EstateDevelopment Resources RE Services

2Q2015

Sold Corporate Lakes IV Lisle LN A 94,375 $18,602,070.00 $197.00 Griffin Capital Wells Fargo 2Q2015

Sold Meridian Business Park Aurora LN B 74,266 $6,932,460.00 $62.05 Lone Star Funds Equity

Commonwealth 2Q2015

Sold 1955 W Field Ct Lake Forest N A 59,130 $3,668,737.00 $62.05 Lone Star Funds Equity Commonwealth 2Q2015

Sold Highland Plaza II Lombard OB B 53,195 $2,595,000.00 $48.78 BAIHP Management, LLC

RiverSource REO, LLC 2Q2015

Sold Westbrook Corporate Center Westchester OB A 1,073,408 Portfolio Sale* The Blackstone

Group GE Capital/Arden 3Q2015

Sold Oakbrook Terrace Tower Oakbrook Terrace OB A 792,192 Portfolio Sale* The Blackstone

Group GE Capital/Arden 3Q2015

Sold Commerce Plaza Oak Brook OB A 515,005 Portfolio Sale* The Blackstone Group GE Capital/Arden 3Q2015

Sold One Lincoln Centre Oakbrook Terrace OB A 303,098 Portfolio Sale* The Blackstone Group GE Capital/Arden 3Q2015

Sold Highland Landmark III Downers Grove OB A 275,197 $41,078,656.00 $149.27 Lone Star Funds Columbia

Property Trust 3Q2015

Sold One Parkway North Deerfield N A 271,500 Portfolio Sale* The Blackstone Group GE Capital/Arden 3Q2015

Sold Pointe O'Hare Rosemont O A 270,512 Portfolio Sale* The Blackstone Group GE Capital/Arden 3Q2015

Sold 1111 W 22nd St Oak Brook OB A 229,756 Portfolio Sale* The Blackstone Group GE Capital/Arden 3Q2015

Sold Corridors III Downers Grove OB A 221,969 $33,133,312.00 $149.27 Lone Star Funds Columbia Property Trust 3Q2015

Sold 747 E 22nd St Lombard OB A 209,577 $8,750,000.00 $41.75 Midas Medical Group Holdings

Vectron Corporation 3Q2015

Sold Metrowest Naperville LN A 205,055 $32,500,000.00 $158.49 Equus Capital Partners Franklin Partners 3Q2015

Sold Lisle Executive Center Lisle LN B 150,000 $15,000,000.00 $99.98 Boxer Property Pearkmark Real

Estate Partners 3Q2015

Sold 215 W Diehl Rd Naperville LN A 150,000 $22,390,500.00 $149.27 Lone Star Funds Columbia Property Trust 3Q2015

Sold 544 Lakeview Pky Vernon Hills N A 145,000 $21,644,150.00 $149.27 Lone Star Funds Columbia Property Trust 3Q2015

Sold 1-9 Commerce Dr Schaumburg NW B 51,513 $5,000,000.00 $97.06 Carepoint Healthcare

The Missner Group 3Q2015

*Part of a 188 property portfolio sale which sold for $3.3 Billion






Sold Bannockburn Lakes I-IV Bannockburn N A 423,369 $27,450,000.00 $64.84 Walton Street

Capital/GlenstarWells Fargo/Hudson Advisors 4Q2015

Sold Highland Pointe Lombard OB A 388,604 $44,000,000.00 $113.22

Hamilton Partners

LaSalle Investment Management

4Q2015

Sold One O'Hare Centre Rosemont O A 380,360 $83,000,000.00 $218.21

MDC/Nicola Crosby Real Estate

CBRE Investors 4Q2015

Sold 1600 Corporate Center Rolling Meadows NW A 253,500 $16,000,000.00 $63.12 Helios Property

ManagementC-III Asset Management

Sold Highland Landmark V Downers Grove OB A 250,545 $71,600,000.00 $285.78 Adventus Realty

Services, Inc.Cornerstone Real Estate Advisors 4Q2015

Sold Edens Corporate Center Northbrook N A 181,330 $30,200,000.00

$160.60 KBS Realty Advisors

The Davis Companies 4Q2015

New Woodfield Corporate Center Schaumburg NW A 532,972 TBD TBD TBD

MassMutual Life Insurance

4Q2015

New 90, 98, 100 Half Day Road Lincolnshire N A 343,000 TBD TBD TBD Medline

Industries 4Q2015

New Parkview Plaza Oakbrook Terrace OB A 264,162 TBD TBD TBD TIAA-CREF 4Q2015

New Estancia Corporate Centre Burr Ridge OB A 167,401 TBD TBD TBD BJF Estancia,

LLC 4Q2015

New Summit Oaks Oakbrook Terrace OB B 91,844 TBD TBD TBDWH&H Realty Advisors/Blue Vista

4Q2015

New Terrace Oaks Oakbrook Terrace OB B 55,829 TBD TBD TBD Terrace Oaks Associates 4Q2015

New Keystone Office Center Rolling Meadows NW B 60,100 TBD TBD TBD LeasePlan USA 4Q2015

UC 3 Lakes Dr Northfield N B 679,000 TBD TBD TBD W.P. Carey 4Q2015

UC Concourse Office Plaza Skokie N A 294,073 TBD TBD TBD Lionstone

Investments 4Q2015

FS Central Park of Lisle Lisle LN A 622,287 TBD TBD TBD The Blackstone

Group Marketing

FS 3, 6, 9 Parkway North Deerfield N A 484,328 TBD TBD TBD John Buck

Company Marketing

FS Atrium Corporate Center Rolling Meadows NW A 483,000 TBD TBD TBD Spear Street

Capital Marketing

FS Old Orchard Towers Skokie N A 335,967 TBD TBD TBD Zeller Realty Marketing

FS Meadows Corporate Center Rolling Meadows NW A 270,200 TBD TBD TBD John Buck

Company Marketing

FS 3000 Lakeside Dr Bannockburn N A 209,628 TBD TBD TBD C-III Asset Management Marketing

FS One Woodfield Lake Schaumburg NW B 204,345 TBD TBD TBD Westport Capital Partners Marketing

FS O'Hare Corporate Towers Rosemont O B 202,325 TBD TBD TBD Lincoln Property Marketing

FS Washington Commons Naperville LN B 202,101 TBD TBD TBD EverWest Real

Estate Partners Marketing

FS Edens Corporate Center Northbrook N A 181,330 TBD TBD TBD The Davis

Companies Marketing

FS Oakbrook Place Oak Brook OB B 179,400 TBD TBD TBD TA Realty Marketing

FS Corporetum VI Lisle LN A 172,695 TBD TBD TBD Winthrop Realty Trust Marketing

FS Olympian Office Centre Lisle LN A 167,756 TBD TBD TBD Riverview Realty

Partners Marketing







FS One Oakbrook Terrace Oakbrook Terrace OB A 161,373 TBD TBD TBD UBS Realty

Investors Marketing

FS Woodlake Corporate Center Lombard OB B 158,454 TBD TBD TBD UBS Realty

Investors Marketing

FS Lisle Executive Center Lisle LN B 150,036 TBD TBD TBD Boxer Property Marketing

FS 600 N Field Dr Lake Forest N A 137,498 TBD TBD TBD James Campbell Company Marketing

FS 777 Big Timber Rd Elgin NW A 127,280 TBD TBD TBD InterCoastal Group Marketing

FS 500 Davis St Evanston N A 126,788 TBD TBD TBD Sabal Financial Group Marketing

FS Boulevard 40 Northbrook N A 106,850 TBD TBD TBD EverWest Real Estate Partners Marketing

FS Golf Corporate Centre Arlington Heights NW B 93,000 TBD TBD TBD Chicagoland

Commercial Marketing

FS Corporetum III Lisle LN A 91,722 TBD TBD TBD Prudential Life Insurance Marketing



Copyright © 2015 Colliers International.

The information contained herein has been obtained from sources deemed reliable. While every reasonable effort has been made to ensure its accuracy, we cannot guarantee it. No responsibility is assumed for any inaccuracies. Readers are encouraged to consult their professional advisors prior to acting on any of the material contained in this report.

About Colliers InternationalColliers International Group Inc. (NASDAQ: CIGI; TSX: CIG) is a global leader in commercial real estate services with more than 16,300 professionals operating from 502 offices in 67 countries. With an enterprising culture and significant insider ownership, Colliers professionals provide a full range of services to real estate occupiers, owners and investors worldwide. Services include brokerage, global corporate solutions, investment sales and capital markets, project management and workplace solutions, property and asset management, consulting, valuation and appraisal services, and customized research and thought leadership. Colliers International has been ranked among the top 100 outsourcing firms by the International Association of Outsourcing Professionals’ Global Outsourcing for 10 consecutive years, more than any other real estate services firm.

colliers.com

502 offices in 67 countries on 6 continentsUnited States: 140 Canada: 31 Latin America: 24 Asia Pacific: 199 EMEA: 108

$2.3billion in annual revenue

1.7billion square feet under management

16,300professionals and staff

MARKET CONTACT:Ronna Larsen Research Manager, Suburban Office | Chicago+1 847 698 [email protected]

q4 2015 chicago suburban office market report

Documents