colliers north american office highlights q4-12

7/29/2019 Colliers North American Office Highlights Q4-12

1/19

HIGHLIGHTSNORTH AMERICA

WWW.COLLIERS.COM

Q4 2012 | OFFICE

KEY TAKEAWAYS

The North American and U.S. oce vacancy rates declined urther during Q to .

and .%, respectively. This was the ourth consecutive quarter o improvement or the

billion square eet o inventory in the North American oce markets tracked by Colliers.

The market uncertainty and volatility o H inhibited neither oce leasing or transact

activity. Q North American net absorption o . MSF was more than double Qs . M

total net absorption was . MSF (roughly the oce inventory o Ft. Lauderdale), the

since the nancial crisis.

Major oce property transactions totaled $. billion in , and surged at year-end

Qs $. billion in oce building sales surpassed all prior quarters in , according to RCapital Analytics.

MARKET INDICATORSRelative to prior period

NORTH AMERICAN OFFICE MARKETSummary Statistics, Q

USQ

USQ

*

CanadaQ

CanadaQ

*

VACANCY

NET ABSORPTION

CONSTRUCTION

RENTAL RATE

*Projected

Construction is the change in Under Construction

Sq. Ft. By Region

2.0000

1.0000

2.0000

Total_OSF-Vacant_O

Vacant_OSF

Absorption Per Mark et (q3 '12 - q4 '12

2,500,000

1,250,000

250,000

-250,000

-1,250,000

-2,500,000

2 billi

1 billi

200 m

Occupied Sq. Ft.

Vacant Sq. Ft.

NORTH AMERICAN OFFICE VACANCY, INVENTORY AND ABSORPTION Q

US CAN NA

VACANCY RATE 14.63% .% .%

Change From Q -.% -.% -.%

ABSORPTION (MSF) . . .

NEW CONSTRUCTION (MSF) . . .

UNDER CONSTRUCTION (MSF) . . .

ASKING RENTS PER SF US CAN

Downtown Class A $. $.

Change rom Q .% .%

Suburban Class A $. $.

Change rom Q .% .%

Unlocking 2013 OfceProperty PerormanceWhat will be the right combination in 2013?

K.C. CONWAY, MAI, CRE EMD | Market Analytics


2/19P. | COLLIERS INTERNATIONAL

HIGHLIGHTS | Q4 2012 | OFFICE | NORTH AMERICA

KEY TAKEAWAYS (continued)

Capital is migrating out o the risk curve or investment in oce building assets in search o yield. This trend, reported by Colliers in previous

reports, was corroborated by the recent Association o Foreign Investors in Real Estate report in which our o the top ve markets or investm

were in the U.S., including Houston or the rst time.

ICEE oce markets are still hot. Intellectual Capital, Energy and Education (ICEE) markets continue to capture a disproportionate share o No

American oce absorption. During , two-thirds o the North American MSAs with the greatest absorption are characterizedICEE markets. We see this trend continuing in as technology, energy and knowledge gateway centers remain the dominant generators

oce-related employment.

Medical Oce has been a sleeper oce sub-property type that saw a % growth in transaction activity in CY to $. billion, or just shy

the % total $. billion in CY oce property sales. And, approximately hal o the MSF o oce space under construction in the U.S

the onset o is or medical-related use.

Recovery in housing is an overlooked oce demand driver that will gain additional traction in .

-183.2

-130.9

-14.4

-0.5

0.0

13.3

24.4

138.9

190.2

203.3

330.0

365.7

-300.0 -200.0 -100.0 0.0 100.0 200.0 300.0 400.0

Ottawa, ON

Vancouver, BC

Victoria, BC

Halifax, NS

Winnipeg, MB

Edmonton, AB

Waterloo Region, ON

Saskatoon, SK

Regina, SK

Toronto, ON

Calgary, AB

Montral, QC

Thousands

CANADIAN OFFICE ABSORPTION BY MARKET Q4 2012

IN THIS QUARTERS REPORT, WE TAKE A LOOK AT THECOMBINATION TO UNLOCKING VALUE IN :

RIGHT : In look or North American

vacancy to drop below %, ueled by

another MSF o absorption.

LEFT :total oce transactions above

$ billion

RIGHT : CMBS oce property

delinquencies rate below %

LEFT ICEE: Oce job growth in Tech/

Energy/Education MSAs outperorms

FIRE MSAs or a third consecutive year

RIGHT MO: Medical Oce is the emergingleader among oce sub-property sectors

0.00

0.00

0.05

0.07

0.08

0.13

0.19

0.30

0.36

1.56

1.66

2.78

0.0 0.5 1.0 1.5 2.0 2.5 3.0

Edmonton, AB

Victoria, BC

Saskatoon, SK

Waterloo Region, ON

Regina, SK

Winnipeg, MB

Halifax, NS

Montral, QC

Ottawa, ON

Vancouver, BC

Calgary, AB

Toronto, ON

Millions

CANADIAN OFFICE UNDER CONSTRUCTION BY MARKET Q4 2012

Note: Q data reported or Winnipeg, MB

See page or details


3/19

HIGHLIGHTS | Q4 2012 | OFFICE | NORTH AMERIC

COLLIERS INTERNATIONAL | P

North American Downtown Markets:

Excluding renewals, of the leases signed

this quarter, did most tenants:

Hold Steady

69.1%Expand16.2%

Contract14.7%


What was the trend in Free Rent (in months

oered by CBD landlords this quarter?

Same80.9%Less

14.7%

More4.4%


What was the trend for tenant

improvement allowances oered by

CBD landlords this quarter?

Hold Steady91.2%

Contract2.9%

Expand5.9%

North American Suburban Markets:

Excluding renewals, of the leases signedthis quarter in your CBD/downtown,did most tenants:

Hold Steady60.3%

Expand30.9%

Contract8.8%

IN BRIEF: OFFICE OUTLOOK nishedand beganas Colliers observed in all : with progress on all ronts.

North American Oce Vacancy alls to just .% at YE .

Net leasing activity best in ve years: i) . MSF in Q ; and ii) . MSF or CY

A % surge in oce building sales surpasses transaction volume (,+ properties

totaling approximately $ billion during )

Despite the harmul summer UV (Uncertainty & Volatility) rays during H, and lingering anxiety

surrounding the U.S. scal debt crisis, ongoing Eurozone recession, the cost and logistics o

implementing Obamacare, and anemic job growth (,/month) or two consecutive years, oce

real estate is persevering and returning to a state o balance. However, the recovery is broadening,

both in the actors that have driven it over the past months, as well as the markets that its reaching.

No longer is the recovery conned to the CBDs o the sexy six core MSAs o New York, Boston,

Chicago, Los Angeles, San Francisco and Seattle; its expanding to suburban submarkets and

secondary MSAs. Real Capital Analytics Ofce Year In Reviewreport noted a percent increase in

suburban oce building sales during , and a percent increase in oce building sales outside

the six core MSAs. While this new interest is driven by a dearth o assets in the core MSAs and the

search or yield in response to Federal Reserve monetary policy and cap rate compression, it has been

oce job growth in technology, energy and primary-education ocused MSAs (what Colliers coined theIntellectual Capital, Energy and Education, or ICEE markets in ) that has dened which secondary

markets were participating in this broadening recovery in the oce property sector thus ar.

In , two other positive inuences will impact this expansion: the housing recovery and growth in

medical oce demand. Both are broad-based across the U.S. and will have more o an efect on

suburban oce submarkets than CBDs. Why? First, proessional services associated with a rise in

new home construction and existing home sales activity will rebuild in proximity to this increasing

housing activity in the suburbs. Second, our healthcare delivery model is shiting rom one concentrated

on expensive urban hospital campuses to less capital-intensive, suburban outpatient acilities.

The ICEE, housing, and medical oce actors, along with the continuing search or yield by investors,

add up to M.O.T.S (More Oce To Secondaries) in . As the diagram below depicts, rising

absorption and modest new supply are driving vacancy down, and the requisite conditions to improveNOI are in place to absorb any interest rate risk in H.

U.S. OFFICE MARKET Q Q

16.1115.57 15.36 15.14 15.03 14.96 14.88 14.83 14.63

-

2.0

4.0

6.0

8.010.0

12.0

14.0

16.0

-

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

20.0

Q4 Q1

2011 2012

Q2 Q3 Q4 Q1 Q2 Q3 Q4

Vacancy%

Absorption MSF Completions MSF Vacancy %




BEHIND THE STATISTICS & BEYOND THE BASICSScope o Colliers Oce Outlook Report: Colliers monitors oce property

conditions in North American markets rom Toronto to Tampa, totaling

. billion square eet o inventory. Approximately percent (. billion

square eet) o this inventory is located in the United States.

The largest North American markets (those with at least MSF o

existing inventory) constitute approximately percent o the . billion

square eet o North American oce space tracked by Colliers. All o the

> million-square-oot markets are located in the U.S., except one: Toronto.

With respect to net absorption, just o the markets accounted

or percent o the . MSF o net absorption, and all but one market

(Calgary) are located in the U.S. Below are the ten absorption-leading

MSAs or seven o which are ICEE markets.

US CA NA

Vacancy Rate: .% .% .%

Change rom Q -.% -.% -.%

Vacancy

From a regional perspective, Canada has the lowest average vacancy r

at . percent; and in the U.S., the Northeast has the lowest vacancy r

just shy o percent. The highest vacancy rate among North Ameri

regions is the Western U.S. at . percent. The South and Midwest h

average regional vacancy rates o .% and .%, respectiv

Housing has been slow in its recovery in both these regions, and the

growth has been more ocused on manuacturing, transportation a

distribution, avoring industrial real estate over oce.

Absorption

The nal tally on net oce absorption was not in the cards

mid-, when it appeared that tenants and businesses were pulling brom leasing activity driving absorption down % over the prior six-mo

period (H). However, despite the markets anxiety over the Novem

election and the Fiscal Clif, s net oce absorption had

best perormance since the nancial crisis. Q net absorp

was more than double that or any prior quarter during (. MS

Q compared to . MSF or the rest o the year).

Which markets outperormed and why? Examination o the top ten No

American markets with respect to absorption in Q and YTD rev

the impact o ICEE employment drivers, commencement o a true hous

recovery, and importance o having a nationally or regionally recogniz

medical center.

MSA ABSORPTION

Houston (ICEE) . MSF

Dallas (ICEE) . MSF

Atlanta (ICEE) . MSF

Detroit . MSF

Chicago . MSF

Calgary (ICEE) . MSF

Phoenix . MSF

Boston (ICEE) . MSF

Philadelphia (ICEE) . MSF

Seattle (ICEE) . MSF

ICEE MARKETS LEAD IN 2012 ABSORPTION

MSA Q MSA CY

Detroit(Auto + Housing)

. MSF Houston . MSF(ICEE) + Medical Cen

Phoenix . MSF Dallas . MSF(ICEE) + Medical Cen

Chicago . MSF Atlanta(Housing Recovery)

. MSF(ICEE) + Medical Cen

Montreal(ICEE)

. MSF Detroit . MSFMedical Center

Philadelphia(ICEE)

. MSF Chicago . MSFMedical Center

Houston

(ICEE). MSF Calgary

. MSF(ICEE)

Boston(ICEE)

. MSF Phoenix(Housing Recovery)

. MSF

Dallas(ICEE)

. MSF Boston . MSF(ICEE) + Medical Cen

Minneapolis . MSF Philadelphia. MSF

(ICEE) + Medical Cen

Sacramento . MSF Seattle. MSF

(ICEE) + Medical Cen

TOP MARKETS FOR ABSORPTION


5/19



Looking at this list, several themes emerge:

The overlapping seven MSAs: Seven o the top ten most active

markets or leasing activity in Q were also among the ten most active

MSAs or all o calendar . Houston, Dallas, Detroit, Chicago,

Phoenix, Boston, and Philadelphia are prominent in both categories.

The predominance o ICEE: Seven o the top ten markets or netabsorption in are MSAs with an ICEE employment prole

(technology, energy and/or primary education).

The increasing role o housing and medical oce: However, only

ve o the top ten markets or Q leasing activity are ICEE MSAs.

What explains the diference, and what explains the emergence o

MSAs like Atlanta, Detroit and Phoenix? The answer is two-old:

) the real housing recovery is taking hold in even the most

distressed housing markets, such as Atlanta, Detroit and Phoenix;

and ) high-prole medical centers are strongly impacting demand

or medical oce space: Eight o the leading MSAs or absorption

in have nationally or regionally recognized medical centers.

Looking orward to , the only brake on oce leasing activity in key

energy marketsDallas, Denver, Houston, Oklahoma City, Philadelphia

(impact o Bakken shale), and Calgarywill be the delayed delivery o new

space under construction. Houston and Denver cant complete new space

ast enough to keep pace with demand. ICEE will also continue to be an

important oce space demand driver in markets like Atlanta and Detroit

where auto technology is ueling demand or engineers, and the oce

space to house them. (In , Porsche and General Motors both made

material commitments to locating auto technology centers in Atlanta.)

And, the housing recovery will benet suburban oce space demand as

contractors and proessional service providers (closing attorneys,

architects, engineers, building inspectors, etc.) rebuild or expand their

operations to service housing activity o approximately . million new

unitsater years o less than hal that level o activity. Atlanta, Charlotte,

Nashville, Phoenix, Tampa, and inland Caliornia markets will see the most

benet rom this housing recovery in . In aggregate, should

surpass s MSF o net absorption by conservative estimates o

%%, or . to . MSF in total. Market orces will see H

disproportionately higher net leasing activity than H, as was the case

in .

Transaction Activity

Transactions o major oce property were also uninhibited by H

uncertainty. There were more than , transactions in , totaling

$. billion, with a noticeable surge at year-end : the $. billion in

Q oce building sales surpassed all prior quarters in , according to

Real Capital Analytics. As in recent years, New York, San Francisco, Los

Angeles, Washington D.C., and Seattle accounted or approximately

percent o the total dollar volume o oce building sales during .

Houston and Denver (two key ICEE MSAs) now rank among the top

markets or oce building transaction volume.

The $. billion in oce transaction activity rom is likely to be

surpassed in , given the amount o idle domestic and oreign capital

searching or yield in tangible assets, such as commercial real estate. The

Association o Foreign Investors in Real Estates annual Fore

Investment Surveyranked the U.S. as the top place overall to invest;

U.S. markets were among their top ve picks, including Houston, wh

had never beore made this reports global ranking.

Construction Activity

To assess the risk o overbuilding, new construction activity nee

to be considered rom three perspectives: ) new supply as a perc

o existing inventory; ) geographic concentration; and ) sub-prope

type concentration.

At the onset o , approximately . MSF o new oce supply

underway in the U.S. and Canada, according to Dodge Pipeline. T

activity translates to a North American new supply to existing invent

ratio o .%. Historically, only when this ratio passes .% is it conside

elevated and indicative o overbuilding risk. Whats more, the curr

supply-to-inventory ratio is actually much lower or most U.S. o

markets due to geographic and sub-property type concentration.

With respect to sub-property type construction, % o the . MSFtotal new supply is medical-oce-related construction. O the remain

. MSF, . MSF (.% o the non-medical oce new supply

concentrated in just ve states. The ollowing table delineates th

geographic and sub-property type ratios:

DelineationNew Supply

(MSF)Ratio (%)

North America . .

Canada . .

United States . .

Oce Property . .

Medical Oce . .

Non-Medical Oce . .

U.S. Non-Medical Oce . .

Top States . .

Texas . .

Caliornia . .

Pennsylvania . .

New York . .

New Jersey . .




ENGINEERING NEWS-RECORDS CONSTRUCTION COST INDEX

YEAR JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC AVG

Note: Construction Costs never dropped post & are rising at a aster pace.

INDEX METHODOLOGY: hours o common labor at the -city average o common labor rates, plus cwt o standard structural steel shapes at the mill price prior to and the abrica-city price rom , plus . tons o portland cement at the -city price, plus , board-t o x lumber at the -city price.

The good news is that the U.S. ratio o new supply to inventory (excluding

medical oce construction) is less than a one-hal o one percentthe

lowest since . And, only MSF o new construction is underway

outside o the ve most active states, where energy and technology

companies, such as Exxon Mobil and Shell Energy in Texas and Endo

Pharmaceutical in Pennsylvania, account or percent o activity.

However, rising construction costs are a concern that spans al l commercial

property types. It may surprise many to learn that construction costs

never actually declined during the nancial crisis and the

ensuing recession. As documented by the Engineering-News Record,

Construction, costs have risen % since the end o , and are up over

. percent since February . Investors and developers considering

new construction investments should budget construction cost increases at

double the CPI or and , due to pressures on labor and materials.

CAPITAL MARKETSWhat is better than improving oce property type undamentals?

those that purchased any o the , oce properties that traded

, the answer is availability o capital. Domestic and oreign sour

are ush with capital ready to invest in tangible assets like real estate, t

can ofer . to . times the yield ofered by the U.S. governme

-year Treasury bond. And, the CMBS debt markets are opening up ag

ater our consecutive years o annual new issuance below $ bill

Underwriting terms and pricing spreads have also compressed in avo

borrowers: Improving market conditions have enabled even proper

with elevated vacancy rates to become nanceable again due to the

DSCR hurdle provided by sub-. percent interest rates and perc

LTVs. Declining CMBS delinquency rates have urther aided new issua

interest, and have CMBS investors enthusiastic about new issua

increasing percent over s $ billion level to $ billion. I

have tenants, and can meet a . DSCR using a .% loan coupon,

capital markets are once again open to renance your oce building.

JAN DEC NOV MON MON YEA

Industrial . . . . . .

Lodging . . . . . .

Multiamily . . . . . .

Oce . . . . . .

Retail . . . . . .

Source: Trepp January CMBS Delinquency Report

PERCENTAGE + DAYS DELINQUENT BY PROPERTY TYPE

8

10

Jan 2012

9.529.37

Mar 2012 May 2012 Jul 2012 Sep 2012 Nov 2012 Jan 2013

12

9.68

10.0410.16

10.3410.13

9.99

9.69 9.71 9.719.57

9.80

PERCENTAGE + DAYS DELINQUENT BY PROPERTY TYPE

Source: Trepp January CMBS Delinquency Report


7/19



THE COMBINATION TO UNLOCKING OFFICE PROPERTY PERFORMANCE

RIGHT Vacancy:I the absorption momentum rom H carries over into

and Congress can maneuver its scal debt obstacle

course in H, the North American oce vacancy rate will decline

below . percent or the rst time since . Oce property investors

are keenly ocused on the need or improvement in NOI in oce properties

going orward to be positioned to absorb higher interest rate costs -

years out. Cap rate compression has aided property values the past two

years, but uture value enhancement will have to be unlocked through NOI

improvement (i.e., increasing occupancy and rental rates).

LEFT Oce Transaction Activity:With improving oce property undamentals and cheap debt to

leverage transactions to maximize yield, should see oce

transaction activity surpass the $ billion mark by as much as %. The

opportunity to unlock value here is in quality assets in secondary ICEEmarkets, such as Atlanta, Austin, Baltimore (now a post-Panamax ready

port), Denver, Fort Worth, and Houston.

RIGHT CMBS Oce Delinquency:For the capital markets to contribute to the improving oce

property conditions, CMBS delinquency rates need to continue

on their downward trajectory and remain south o percent overall. As

new issuance increases to a level north o $ billion (increases the

denominator in the delinquency calculation), and special servicers

continue to resolve in excess o $. billion in delinquent or deaulted loans

(decreases the numerator portion o the delinquency ratio calculation),

CMBS delinquency is likely to remain below percent. This trend needs

to translate over to the oce property sector. With a January CMBS ocedelinquency rate o .%, this ratio should decline urther, and maybe

even drop below %, as mature legacy oce property loans are nally

able to renance. CMBS delinquency below percent is critical to capital

market condence and unlocking more opportunity or oce property

leverage in .

LEFT ICEE Oce Demand Drivers:The greatest opportunity or value enhancement and yield

remain in those secondary markets with an ICEE employm

prole. Traditional FIRE (Finance Insurance and Real Estate) markets

going to ace oce absorption headwinds as nancial institutions red

operating costs and the amount o oce space they occupy. Finan

institutions will be returning oce inventory to the market undermin

recent improvement in vacancy. For this part o the combination, turn

ICEE vs. FIRE.

RIGHT MO Medical Oce:The role o medical oce space in the overall oce vaca

picture warrants monitoring in , particularly as the Oba

administrations healthcare legislation and mandated healthcare exchan

are implemented. Due to strong demand and an absence o much n

supply since , demand or medical oce space has risen dramaticand is ueling a boom in new construction. The states with the m

medical oce construction activity are Texas, Caliornia, Maryland, N

York, North Carolina and Ohio. Medical oce ofers an unlocked opportu

as contraction continues among traditional users o oce space, su

as nancial services rms. Do your homework beore jumping into t

sub-property sector, though. Vacancy and rental rates vary widely, a

this subsector lacks the same availability o data and transparency as

greater North American oce market.

Houston




UNITED STATES | DOWNTOWN OFFICE | ALL INVENTORY

MARKETEXISTING

INVENTORY (SF)DEC ,

NEW SUPPLYQ

(SF)

UNDERCONSTRUCTION

(SF)

VACANCYRATE (%)

SEP ,

VACANCYRATE (%)

DEC ,

ABSORPTIONQ

(SF)

NORTHEAST

Baltimore, MD 28,840,782 234,874 - 14.06 14.02 9,076Boston, MA 60,725,404 98,096 2,435,000 14.08 13.06 616,698

Hartord, CT 9,769,060 - - 21.24 20.72 50,896

New York, NY Downtown Manhattan 110,942,138 - 5,200,000 16.09 15.36 814,431

New York, NY Midtown Manhattan 227,532,283 - 1,052,150 11.94 12.04 (226,585)

New York, NY Midtown South Manhattan 165,368,697 - 850,000 7.96 8.03 (119,601)

Philadelphia, PA 43,133,883 654,000 - 11.17 10.76 178,159

Pittsburgh, PA 32,161,109 52,000 800,000 9.68 10.9 (129,087)

Stamord, CT 18,966,293 - - 19.55 21.00 (274,722)

Washington, DC 140,909,953 - 1,903,911 10.44 10.48 (59,655)

White Plains, NY 7,741,025 - - 15.19 15.78 (45,062)

Northeast Total 846,090,627 1,038,970 12,241,061 11.86 11.77 814,548

SOUTH

Atlanta, GA 49,933,614 433,822 450,000 17.04 16.94 47,727

Birmingham, AL* 4,338,335 - - 22.00 19.80 95,482

Charleston, SC 2,068,469 - 52,000 7.70 7.24 9,369

Charlotte, NC 22,511,630 828,831 - 8.80 7.94 193,649

Columbia, SC 4,490,309 - - 16.80 14.21 116,125

Dallas, TX 34,744,566 204,109 - 26.98 27.58 (208,846)

Ft. Lauderdale-Broward, FL 8,003,061 - - 16.49 16.33 12,534

Ft. Worth, TX 10,400,974 - 154,801 13.05 12.14 94,885

Greenville, SC 3,143,679 - 235,000 12.24 15.68 (107,938)

Houston, TX 36,514,081 50,000 - 14.45 13.72 269,002

Jacksonville, FL 15,994,027 73,423 - 14.66 14.42 30,994

Little Rock, AR 6,422,699 - - 11.30 12.48 (22,714)

Louisville, KY 43,630,770 300,000 - 11.80 11.89 228,712

Memphis, TN 6,108,640 - 26,000 14.77 14.66 6,481

Miami-Dade, FL 18,491,614 33,930 - 18.29 18.36 (12,903)

Nashville, TN 12,087,245 48,000 - 14.76 13.52 167,473

Orlando, FL 12,744,796 - - 11.83 11.86 (3,379)Raleigh/Durham/Chapel Hill, NC 13,657,917 - - 6.49 6.08 55,964

Richmond, VA 17,066,905 - 112,000 10.76 10.70 10,479

Savannah, GA 825,240 72,072 - 15.21 14.18 68,561

Tampa Bay, FL 8,607,635 66,927 - 12.91 13.36 (39,132)

West Palm Beach/Palm Beach County, FL 10,130,113 - - 17.79 16.69 110,753

South Total 341,916,319 2,111,114 1,029,801 15.10 14.88 1,123,278

*Absorption and vacancy fgures or Birmingham account or direct space only


9/19



UNITED STATES | DOWNTOWN OFFICE | ALL INVENTORY

MARKETEXISTING

INVENTORY (SF)DEC ,

NEW SUPPLYQ

(SF)

UNDERCONSTRUCTION

(SF)

VACANCYRATE (%)

SEP ,

VACANCYRATE (%)

DEC ,

ABSORPTIONQ

(SF)

MIDWEST

Chicago, IL 159,986,353 297,763 - 13.45 13.23 347,362Cincinnati, OH 18,047,286 - - 18.12 18.09 5,408

Cleveland, OH 34,140,929 710,100 475,000 19.26 19.07 66,433

Columbus, OH 19,597,350 395,500 280,000 11.00 11.90 36,469

Detroit, MI 26,153,283 1,165,425 - 21.04 20.88 42,065

Grand Rapids, MI 5,461,588 - - 23.24 22.34 49,026

Indianapolis, IN 23,453,317 - 18,000 13.71 13.34 94,650

Kansas City, MO 34,664,036 - 215,000 14.60 14.43 61,577

Milwaukee, WI 19,887,288 145,000 - 13.71 13.39 62,655

Minneapolis, MN 31,840,763 - - 15.13 14.98 46,977

Omaha, NE 6,358,928 60,000 - 7.16 8.53 9,192

St. Louis, MO 27,493,907 - - 16.52 16.66 (37,405)

St. Paul, MN 12,904,838 - - 13.85 13.82 4,013

Midwest Total 419,989,866 2,773,788 988,000 14.98 14.86 788,422

WEST

Bakerseld, CA 3,020,093 - - 8.86 7.62 44,571

Boise, ID 3,741,536 241,208 260,000 10.95 10.24 66,851

Denver, CO 34,251,235 39,656 112,000 12.43 12.26 70,574

Fresno, CA 3,284,713 - - 11.40 11.66 (8,393)

Honolulu, HI 7,119,083 - - 14.00 13.21 55,973

Las Vegas, NV 4,192,128 - 458,200 12.31 12.37 (2,488)

Los Angeles, CA 31,942,700 418,600 229,500 18.46 19.03 (178,200)

Oakland, CA 16,891,513 - - 12.90 13.45 (92,321)

Phoenix, AZ 21,016,381 203,609 - 21.30 21.52 29,081

Portland, OR 33,287,613 100,083 - 9.77 9.89 (40,940)

Reno, NV 1,388,078 - - 19.58 19.50 9,309

Sacramento, CA 18,949,701 130,000 - 9.80 9.59 39,662

San Diego, CA 10,149,972 - - 20.14 19.84 30,448

San Francisco, CA 88,179,309 189,835 2,510,615 10.51 10.28 387,187

San Jose/Silicon Valley 7,601,845 318,000 - 23.69 24.73 (81,425)Seattle/Puget Sound, WA 56,216,928 340,563 625,501 12.01 12.04 284,779

Stockton, CA 8,221,819 - - 18.86 18.16 58,138

Walnut Creek/Pleasanton, CA 12,561,714 - - 16.26 15.71 (4,731)

West Total 362,016,361 1,981,554 4,195,816 13.32 13.29 668,075

U.S. TOTAL 1,970,013,173 7,905,426 18,454,678 13.36 13.25 3,394,323

(continued)




UNITED STATES | DOWNTOWN OFFICE | CLASS A

MARKETEXISTING

INVENTORY (SF)DEC ,

AVG ANNUALQUOTED RENT

(USD PSF)DEC ,

QUARTERLYCHANGEIN RENT

(%)

ANNUALCHANGEIN RENT

(%)

VACANCYRATE (%)

SEP ,

VACANCYRATE (%)

DEC ,

ABSORPTIOQ

(SF)

NORTHEAST

Baltimore, MD 13,228,621 14.93 0.7 5.9 14.93 14.92 1,726Boston, MA 41,333,537 13.92 1.5 1.7 13.92 13.07 349,709

Hartord, CT 6,660,379 22.39 -1.0 -0.3 22.39 21.47 60,970

New York, NY Downtown Manhattan 77,672,777 18.75 -0.1 -2.2 18.75 17.54 940,170

New York, NY Midtown Manhattan 192,290,701 12.60 -1.2 0.7 12.60 12.76 (297,418)

New York, NY Midtown South Manhattan 32,865,338 6.79 0.1 11.7 6.79 8.33 (504,207)

Philadelphia, PA 32,656,957 10.59 -0.5 - 10.59 10.52 19,612

Pittsburgh, PA 18,279,017 7.64 2.9 4.1 7.64 7.13 29,859

Stamord, CT 13,299,364 21.77 -1.9 -6.4 21.77 23.01 (164,957)

Washington, DC 85,704,698 11.90 0.3 2.1 11.90 11.92 (20,351)

White Plains, NY 4,885,999 17.00 -2.0 -4.3 17.00 18.10 (53,855)

Northeast Total 518,877,388 13.30 -0.2 1.2 13.30 13.22 361,258

SOUTH

Atlanta, GA 30,000,462 18.87 0.1 -1.3 18.87 18.53 101,522

Birmingham, AL* 3,322,353 11.56 - 1.0 11.56 11.34 7,962

Charleston, SC 1,043,494 3.33 1.2 10.1 3.33 2.55 8,134

Charlotte, NC 16,040,594 10.40 1.9 1.4 10.40 9.11 208,132

Columbia, SC 1,926,914 15.02 3.9 4.1 15.02 10.13 94,216

Dallas, TX 22,693,924 23.68 0.9 2.3 23.68 24.69 (230,826)

Ft. Lauderdale-Broward, FL 4,454,238 21.30 -0.4 -0.5 21.30 21.27 1,229

Ft. Worth, TX 5,850,052 11.69 0.9 0.9 11.69 10.54 67,382

Greenville, SC 1,871,715 8.83 6.1 -3.5 8.83 15.32 (121,511)

Houston, TX 26,119,764 10.69 0.4 5.2 10.69 9.75 244,855

Jacksonville, FL 6,830,482 15.40 0.3 2.0 15.40 14.97 29,314

Little Rock, AR 2,636,353 9.72 0.2 0.6 9.72 11.83 (3,212)

Louisville, KY 10,560,672 13.05 0.4 -4.6 13.05 14.57 100,131

Memphis, TN 1,966,542 18.26 -0.1 0.3 18.26 18.63 (7,338)

Miami-Dade, FL 9,758,448 21.50 -0.9 -3.2 21.50 21.31 18,821

Nashville, TN 3,953,423 20.50 -1.5 -6.7 20.50 18.37 84,077

Orlando, FL 5,784,868 16.57 -1.2 -2.1 16.57 15.93 37,028Raleigh/Durham/Chapel Hill, NC 5,633,684 8.74 0.4 -3.1 8.74 8.33 22,893

Richmond, VA 5,895,522 7.46 0.1 4.6 7.46 7.37 4,979

Savannah, GA 642,460 13.02 7.5 7.2 13.02 7.65 97,201

Tampa Bay, FL 4,791,174 13.98 -0.5 2.0 13.98 15.22 (59,515)

West Palm Beach/Palm Beach County, FL 3,337,557 22.51 -0.3 3.2 22.51 20.69 60,785

South Total 175,114,695 15.62 0.7 1.0 15.62 15.40 766,259



11/19



UNITED STATES | DOWNTOWN OFFICE | CLASS A

MARKETEXISTING

INVENTORY (SF)DEC ,


(USD PSF)DEC ,

QUARTERLYCHANGEIN RENT

(%)

ANNUALCHANGEIN RENT

(%)

VACANCYRATE (%)

SEP ,

VACANCYRATE (%)

DEC ,

ABSORPTIOQ

(SF)

MIDWEST

Chicago, IL 60,846,877 37.36 0.3 0.7 14.52 14.05 284,974Cincinnati, OH 8,815,068 21.96 - -6.0 19.11 22.06 (260,407)

Cleveland, OH 9,728,269 21.33 -0.3 6.3 13.68 13.34 32,992

Columbus, OH 8,106,210 18.52 -1.4 -1.5 12.15 11.14 82,018

Detroit, MI 9,120,878 22.80 -0.2 -3.1 17.14 17.07 6,139

Grand Rapids, MI 1,542,050 19.28 0.1 -8.1 22.34 19.56 42,756

Indianapolis, IN 9,928,804 19.03 2.0 -1.2 18.92 18.30 50,070

Kansas City, MO 10,276,792 18.90 -0.3 0.7 19.91 19.89 2,029

Milwaukee, WI 5,411,144 20.17 2.8 0.9 13.09 12.07 55,208

Minneapolis, MN 13,618,828 16.52 6.9 15.3 12.33 11.78 75,272

Omaha, NE 3,417,878 19.62 -0.6 1.7 4.22 4.54 (10,025)

St. Louis, MO 10,678,000 17.73 0.5 -0.3 13.53 13.78 (25,983)

St. Paul, MN 2,773,960 13.35 -0.4 17.8 9.64 10.19 (15,440)

Midwest Total 154,264,758 27.20 0.6 0.8 14.85 14.64 319,603

WEST

Bakerseld, CA 699,798 17.40 - - 4.35 3.86 3,413

Boise, ID 2,228,115 20.12 -2.6 8.1 7.05 5.21 200,470

Denver, CO 21,238,158 30.0 0.1 4.2 13.54 13.02 110,767

Fresno, CA 1,058,046 24.00 - -7.7 12.37 12.37 -

Honolulu, HI 4,966,720 34.45 0.7 -1.0 13.34 12.23 43,171

Las Vegas, NV 807,588 31.32 0.4 0.8 10.67 11.60 (7,551)

Los Angeles, CA 17,749,600 36.12 - -6.2 16.46 18.00 (267,100)

Oakland, CA 10,198,245 30.72 -3.0 -3.0 9.86 11.22 (138,461)

Phoenix, AZ 9,459,620 22.86 - 1.5 20.05 21.15 (104,497)

Portland, OR 13,189,621 24.89 - - 8.76 8.78 (3,087)

Reno, NV 557,635 21.31 -1.3 -7.5 20.87 18.03 15,817

Sacramento, CA 9,062,614 32.40 - - 8.34 8.08 23,514

San Diego, CA 7,254,266 28.20 - -0.4 17.67 17.37 21,659

San Francisco, CA 56,642,612 49.56 5.6 20.5 10.31 9.71 508,711

San Jose/Silicon Valley 3,365,127 31.83 -6.6 -0.7 25.84 27.02 (40,361)Seattle/Puget Sound, WA 32,531,336 30.96 2.1 3.4 14.12 13.60 428,837

Stockton, CA 2,790,574 20.16 - -4.5 27.05 26.45 16,621

Walnut Creek/Pleasanton, CA 8,233,222 27.72 0.4 0.9 14.97 15.44 (38,786)

West Total 202,032,897 35.43 - 0.8 13.07 12.96 773,137

U.S. TOTAL 1,050,289,738 41.22 0.2 1.0 13.87 13.74 2,220,257

(continued)




UNITED STATES | SUBURBAN OFFICE | ALL INVENTORY

MARKETEXISTING

INVENTORY (SF)DEC ,

NEW SUPPLYQ

(SF)

UNDERCONSTRUCTION

(SF)

VACANCYRATE (%)

SEP ,

VACANCYRATE (%)

DEC ,

ABSORPTIONQ

(SF)

NORTHEAST

Baltimore, MD 86,786,838 234,874 1,163,140 12.65 12.44 386,882

Boston, MA 110,971,331 98,096 1,563,851 19.37 19.10 314,921

Faireld County, CT 41,493,424 74,726 - 12.56 12.88 -68,762

Hartord, CT 12,251,551 - - 14.96 14.44 63,815

Long Island, NY 71,732,215 768,000 55,000 10.71 10.66 718,538

New Jersey Central 103,723,820 315,670 116,057 20.92 20.70 487,335

New Jersey Northern 137,967,000 30,000 737,600 21.03 21.09 -52,196

Philadelphia, PA 110,578,994 654,000 322,005 15.17 14.94 802,694

Pittsburgh, PA 89,275,846 52,000 764,395 7.57 7.06 46,342

Washington, DC 283,566,213 - - 15.44 15.83 -1,118,510

Westchester County, NY 37,071,839 - - 15.05 15.39 -126,457

Northeast Total 1,085,419,071 2,227,366 4,722,048 15.73 15.73 1,454,602

SOUTH

Atlanta, GA 171,243,642 433,822 674,097 17.04 17.03 363,892

Birmingham, AL* 14,213,847 - - 18.48 17.93 77,062

Charleston, SC 9,379,515 - 75,000 15.00 14.79 35,516

Charlotte, NC 75,365,988 828,831 108,596 13.31 13.45 626,394

Columbia, SC 5,016,258 - - 24.04 25.61 -79,155

Dallas, TX 241,020,318 204,109 1,027,817 15.94 15.57 1,050,842

Ft. Lauderdale-Broward, FL 42,982,403 - 806,572 13.73 13.71 6,984Ft. Worth, TX 20,158,197 - 144,233 7.73 7.25 97,536

Greenville, SC 5,093,005 - - 18.52 18.10 21,540

Houston, TX 159,079,088 50,000 4,394,827 14.20 13.81 664,309

Jacksonville, FL 44,916,088 73,423 2,607 13.36 13.26 96,049

Little Rock, AR 7,625,053 - 46,000 12.58 12.45 -43,423

Memphis, TN 27,443,840 - 113,392 14.82 14.46 100,717

Miami-Dade, FL 63,016,310 33,930 162,063 13.96 13.64 229,620

Nashville, TN 14,842,231 28,000 - 7.49 7.51 23,248

Orlando, FL 53,927,670 - 87,895 15.58 14.95 431,065

Raleigh/Durham/Chapel Hill, NC 64,136,382 - - 14.15 13.97 119,064

Richmond, VA 34,412,752 - - 11.73 12.21 -164,213

Savannah, GA 1,534,208 - - 23.69 18.94 48,350

Tampa Bay, FL 71,219,715 66,927 269,272 16.08 15.69 404,271

West Palm Beach/Palm Beach County, FL 28,655,101 - 30,000 19.18 18.30 251,828

South Total 1,155,281,611 1,719,042 7,942,371 15.03 14.78 4,361,496



13/19



UNITED STATES | SUBURBAN OFFICE | ALL INVENTORY

MARKETEXISTING

INVENTORY (SF)DEC ,

NEW SUPPLYQ

(SF)

UNDERCONSTRUCTION

(SF)

VACANCYRATE (%)

SEP ,

VACANCYRATE (%)

DEC ,

ABSORPTIONQ

(SF)

MIDWEST

Chicago, IL 157,535,389 297,763 - 17.07 16.73 783,012Cincinnati, OH 35,718,611 - - 20.10 21.01 -326,094

Cleveland, OH 107,371,768 710,100 788,866 9.94 9.97 605,183

Columbus, OH 43,849,812 156,500 111,000 11.88 12.06 56,993

Detroit, MI 137,172,750 1,165,425 31,232 19.08 18.59 1,619,025

Grand Rapids, MI 11,557,283 - 382,000 23.28 23.19 10,173

Indianapolis, IN 45,740,597 - 75,000 13.29 13.15 90,627

Kansas City, MO 56,941,429 - 1,510,765 13.45 13.27 103,240

Milwaukee, WI 33,034,701 145,000 - 11.51 11.70 -59,970

Minneapolis, MN 82,273,735 - 931,700 14.33 13.39 776,569

Omaha, NE 20,597,840 60,000 180,000 12.12 12.10 72,609

St. Louis, MO 55,244,405 - - 11.53 11.08 247,729

Midwest Total 787,038,320 2,534,788 4,010,563 14.86 14.62 3,979,096

WEST

Bakerseld, CA 5,994,188 - 81,594 6.60 6.98 -22,693

Boise, ID 11,093,685 196,235 - 18.77 18.98 135,657

Denver, CO 104,416,469 - 745,767 14.29 14.08 126,306

Faireld, CA 4,877,417 - - 25.28 25.70 -20,478

Fresno, CA 18,008,675 - 70,000 12.99 13.25 -47,197

Honolulu, HI 7,490,275 - 40,000 12.89 12.88 9,218

Las Vegas, NV 35,115,687 - 42,123 25.55 24.64 320,637

Los Angeles, CA 168,909,400 418,600 1,213,700 17.76 17.78 410,100

Los Angeles Inland Empire, CA 21,626,300 - - 22.84 21.25 344,823

Oakland, CA 16,165,151 - - 19.54 18.11 231,011

Orange County, CA 80,477,400 - 380,000 17.08 16.61 315,300

Phoenix, AZ 109,902,559 108,609 375,482 21.58 20.36 1,435,184

Portland, OR 44,445,096 100,083 163,874 11.71 11.19 322,024

Reno, NV 5,547,351 - - 16.37 15.99 38,829

Sacramento, CA 73,472,600 130,000 257,451 18.74 17.82 781,917

San Diego, CA 70,818,124 - 946,457 13.92 13.59 235,680San Francisco Peninsula 35,142,199 18,781 - 13.69 14.03 -102,740

San Jose/Silicon Valley 54,745,633 318,000 - 12.86 12.42 390,701

Seattle/Puget Sound, WA 74,567,897 - 82,950 12.47 10.98 370,396

Walnut Creek/Pleasanton, CA 32,987,041 - - 12.77 11.73 343,070

West Total 975,803,147 1,290,308 4,399,398 16.56 16.00 5,617,745

U.S. TOTAL 4,003,542,149 7,771,504 21,074,380 15.56 15.31 15,412,939

(continued)




UNITED STATES | SUBURBAN OFFICE | CLASS A

MARKETEXISTING

INVENTORY (SF)DEC ,

AVERAGEANNUAL QUOTEDRENT (USD PSF)

DEC ,

QUARTERLYCHANGE INRENT (%)

ANNUALCHANGE INRENT (%)

VACANCYRATE (%)

SEP ,

VACANCYRATE (%)

DEC ,

ABSORPTIONQ

(SF)

NORTHEAST

Baltimore, MD 30,282,850 24.87 -1.03 -3.23 15.91 15.37 362,930Boston, MA 47,074,119 24.74 -1.55 -3.06 17.80 17.88 -40,309

Faireld County, CT 17,597,470 35.35 -2.67 9.24 13.25 13.77 -27,217

Hartord, CT 7,906,889 20.25 -2.78 -3.39 13.53 12.75 61,867

Long Island, NY 23,077,975 30.47 0.20 1.84 11.46 11.56 -21,446

New Jersey Central 60,391,076 26.52 -0.86 -1.78 22.45 21.95 546,337

New Jersey Northern 84,682,274 26.28 -1.05 -1.28 20.62 20.42 193,221

Philadelphia, PA 68,076,073 24.73 0.91 2.96 14.54 14.27 740,149

Pittsburgh, PA 17,179,193 21.95 0.87 2.09 6.49 5.30 148,053

Washington, DC 132,646,603 32.03 -1.39 -1.51 15.26 15.83 -745,611

Westchester County, NY 17,442,819 26.42 -0.38 -2.87 18.72 19.26 -94,133

Northeast Total 506,357,341 27.65 -0.92 -0.61 16.74 16.73 1,123,841

SOUTH

Atlanta, GA 79,312,905 22.34 0.68 0.81 16.61 16.34 527,253

Birmingham, AL* 8,943,059 21.09 -0.80 0.43 16.81 15.96 76,173

Charleston, SC 3,942,925 23.18 0.17 -2.56 11.45 11.49 809

Charlotte, NC 19,403,225 22.80 0.62 6.19 15.18 16.61 410,325

Columbia, SC 973,189 16.55 -1.55 -4.00 13.77 14.93 -11,304

Dallas, TX 91,055,763 23.30 - 1.30 16.20 15.50 634,612

Ft. Lauderdale-Broward, FL 10,963,059 27.14 0.04 -2.44 18.82 18.45 40,574

Ft. Worth, TX 2,638,353 24.00 - -2.04 3.89 3.85 1,032

Greenville, SC 2,245,798 17.32 1.88 -0.40 15.60 12.66 66,172

Houston, TX 66,845,822 28.20 3.26 3.15 12.00 11.44 379,470

Jacksonville, FL 9,206,865 19.58 - -3.59 8.46 8.32 13,028

Little Rock, AR 3,027,212 19.25 0.94 3.89 18.98 18.71 9,217

Memphis, TN 8,113,880 21.44 -0.79 -1.02 8.42 8.10 25,608

Miami-Dade, FL 16,308,475 30.52 0.07 -3.05 19.81 18.70 180,756

Nashville, TN 7,288,561 23.23 0.13 6.32 5.34 5.87 -39,206

Orlando, FL 16,827,628 20.93 -1.60 -3.77 21.08 19.88 201,731

Raleigh/Durham/Chapel Hill, NC 24,532,197 20.76 -0.48 -2.21 14.39 13.76 154,190Richmond, VA 13,564,697 18.78 -0.05 0.48 14.24 13.60 86,395

Savannah, GA 490,035 22.70 0.18 0.35 23.70 17.79 28,932

Tampa Bay, FL 23,629,402 22.78 -0.35 -2.15 16.07 14.48 214,151

West Palm Beach/Palm Beach County, FL 9,163,879 29.68 -1.53 -2.94 18.14 17.23 83,092

South Total 418,476,929 23.80 0.61 0.57 15.23 14.70 3,083,010



15/19



UNITED STATES | SUBURBAN OFFICE | CLASS A

MARKETEXISTING

INVENTORY (SF)DEC ,

AVERAGEANNUAL QUOTEDRENT (USD PSF)

DEC ,

QUARTERLYCHANGE INRENT (%)

ANNUALCHANGE INRENT (%)

VACANCYRATE (%)

SEP ,

VACANCYRATE (%)

DEC ,

ABSORPTIONQ

(SF)

MIDWEST

Chicago, IL 76,979,405 27.00 - 1.89 18.23 17.70 403,696Cincinnati, OH 15,916,607 20.54 0.39 0.20 19.40 20.31 -144,815

Cleveland, OH 13,701,278 21.34 -0.33 0.05 10.44 10.05 689,788

Columbus, OH 18,133,071 19.05 0.37 2.14 10.57 11.50 -27,569

Detroit, MI 33,643,164 20.52 -0.24 -2.01 15.52 15.72 -67,275

Grand Rapids, MI 2,206,876 17.50 -2.78 -9.00 28.84 28.22 13,520

Indianapolis, IN 12,403,471 18.00 0.39 1.58 17.72 17.10 85,772

Kansas City, MO 14,734,064 20.30 0.30 -1.93 11.87 11.78 14,100

Milwaukee, WI 5,912,609 22.32 9.90 9.79 10.93 10.58 20,889

Minneapolis, MN 26,674,839 13.80 -1.43 -0.50 16.12 15.62 131,289

Omaha, NE 4,342,362 26.15 - 0.85 5.07 5.01 104,815

St. Louis, MO 25,996,388 21.89 0.05 -1.40 10.62 10.79 -45,320

Midwest Total 250,644,134 21.91 0.14 0.77 15.26 15.12 1,178,890

WEST

Bakerseld, CA 2,697,867 24.00 - - 4.74 5.28 -14,426

Boise, ID 3,108,058 15.12 0.13 0.47 14.14 13.57 17,779

Denver, CO 34,321,698 23.74 1.32 4.49 11.95 11.96 -3,198

Faireld, CA 1,917,086 25.61 -2.07 2.11 26.88 29.77 -55,433

Fresno, CA 4,017,507 25.20 - - 17.26 18.85 -63,910

Las Vegas, NV 4,979,076 29.28 - -1.61 34.96 33.02 96,889

Los Angeles, CA 102,533,800 33.96 0.71 1.43 17.26 17.20 455,100

Los Angeles Inland Empire, CA 5,194,800 23.52 1.03 2.08 27.39 23.62 195,866

Oakland, CA 3,870,228 26.40 - -0.90 26.20 24.23 76,225

Orange County, CA 32,834,800 25.56 -0.93 -0.47 17.93 16.96 253,700

Phoenix, AZ 30,242,049 23.29 0.26 -1.06 23.12 20.31 918,319

Portland, OR 11,012,912 22.95 -0.35 0.31 14.02 14.06 -4,348

Reno, NV 2,989,478 18.62 - -7.09 13.90 13.91 34,636

Sacramento, CA 16,324,396 22.20 -0.54 -1.60 21.51 20.99 185,646

San Diego, CA 23,418,247 32.88 - 4.18 11.52 10.73 184,465

San Francisco Peninsula 22,281,029 41.64 -0.29 10.16 13.53 14.09 -109,899San Jose/Silicon Valley 27,077,797 39.07 -1.34 8.17 14.02 14.43 145,393

Seattle/Puget Sound, WA 20,850,141 31.68 0.86 4.55 10.38 8.57 132,984

Walnut Creek/Pleasanton, CA 15,972,148 25.92 3.85 14.89 10.33 8.98 216,974

West Total 365,643,117 30.38 0.35 3.37 16.25 15.68 2,662,762

U.S. TOTAL 1,541,121,521 26.21 -0.08 0.82 15.97 15.67 8,048,503

(continued)




CANADA | DOWNTOWN OFFICE | ALL INVENTORY

MARKETEXISTING

INVENTORY (SF)DEC ,

NEW SUPPLYQ

(SF)

UNDERCONSTRUCTION

(SF)

VACANCYRATE (%)

SEP ,

VACANCYRATE (%)

DEC ,

ABSORPTIONQ

(SF)

Calgary, AB 39,567,994 256,657 1,661,000 4.52 3.68 330,012

Edmonton, AB 11,260,840 117,768 - 8.42 8.30 13,280Haliax, NS 4,684,110 38,948 190,000 11.44 11.45 -470

Montral, QC 49,428,581 127,000 304,000 5.01 4.27 365,660

Ottawa, ON 15,526,942 87,700 360,000 5.57 6.75 -183,170

Regina, SK 3,801,824 220,000 80,000 1.92 2.59 190,164

Saskatoon, SK* 2,319,464 109,000 50,000 3.25 3.34 138,900

Toronto, ON 69,531,181 464,455 2,784,698 5.10 4.58 203,259

Vancouver, BC 24,408,488 20,299 1,563,810 3.50 4.03 -130,891

Victoria, BC 4,952,849 80,455 - 7.79 8.28 -14,428

Waterloo Region, ON 3,772,982 - 66,075 14.87 14.22 24,360

Winnipeg, MB 11,188,648 - 130,375 6.59 6.59 -

CANADA TOTAL 240,443,903 1,522,282 7,189,958 5.35 5.04 936,676

*Saskatoon tracks but does not submit suburban inventory gures or this report

CANADA | DOWNTOWN OFFICE | CLASS A

MARKETEXISTING

INVENTORY (SF)DEC ,


(CAD PSF)DEC ,

QUARTERLYCHANGE

IN RENT (%)

ANNUALCHANGE

IN RENT (%)

VACANCYRATE (%)

SEP ,

VACANCYRATE (%)

DEC ,

ABSORPTIONQ (SF)

Calgary, AB 26,727,389 60.21 - 8.7 1.46 1.84 -102,756

Edmonton, AB 9,074,913 42.02 0.7 5.3 8.27 8.45 -16,593

Haliax, NS 1,933,746 32.35 - 1.7 9.06 8.95 2,144Montral, QC 23,075,596 45.00 7.1 7.1 4.49 4.13 82,257

Ottawa, ON 9,535,830 51.60 3.5 6.7 4.52 4.92 -38,670

Regina, SK 1,094,911 42.00 4.0 13.5 0.96 1.42 212,815

Saskatoon, SK 570,571 40.00 5.3 8.1 1.84 3.59 67,509

Toronto, ON 40,130,328 54.28 0.6 2.4 5.70 4.70 187,396

Vancouver, BC 10,029,234 54.57 -1.1 0.1 2.08 2.65 -60,827

Victoria, BC 513,808 35.00 -2.8 -7.4 9.43 4.88 39

Waterloo Region, ON 1,559,429 25.66 - -0.8 12.48 12.01 7,282

Winnipeg, MB 2,619,428 33.50 - N/A 4.76 4.76 -

CANADA TOTAL 126,865,183 51.42 1.7 4.5 4.46 4.24 340,596


17/19



CANADA | SUBURBAN OFFICE | ALL INVENTORY

MARKETEXISTING

INVENTORY (SF)DEC ,

NEW SUPPLYQ

(SF)

UNDERCONSTRUCTION

(SF)

VACANCYRATE (%)

SEP ,

VACANCYRATE (%)

DEC ,

ABSORPTIONQ

(SF)

Calgary, AB 24,444,605 256,657 - 8.54 9.34 40,263

Edmonton, AB 9,110,948 117,768 315,150 11.24 11.13 103,952Haliax, NS 6,545,973 38,948 73,500 10.45 10.98 -152

Montral, QC 24,355,843 127,000 153,516 8.93 8.55 627,008

Ottawa, ON 21,181,500 87,700 416,450 9.10 9.84 -78,742

Regina, SK 720,541 - - 0.41 - -

Toronto, ON 68,333,270 250,000 924,250 8.12 7.47 377,866

Vancouver, BC 27,698,230 20,299 1,712,524 11.13 10.00 309,956

Victoria, BC 3,681,143 80,455 121,000 8.51 9.39 19,167

Waterloo Region, ON 7,112,148 - 154,710 10.76 10.85 -3,876

Winnipeg, MB 3,353,094 - 192,000 12.26 12.26 -

CANADA TOTAL 196,537,295 978,827 4,063,100 9.17 8.95 1,395,442

CANADA | SUBURBAN OFFICE | CLASS A

MARKETEXISTING

INVENTORY (SF)DEC ,


(CAD PSF)DEC ,

QUARTERLYCHANGE

IN RENT (%)

ANNUALCHANGE

IN RENT (%)

VACANCYRATE (%)

SEP. ,

VACANCYRATE (%)

DEC ,

ABSORPTIONQ

(SF)

Calgary, AB 11,635,483 44.00 2.3 7.3 7.10 7.63 176,873

Haliax, NS 2,875,036 27.44 - -2.5 10.64 9.84 20,869

Montral, QC 13,562,834 27.00 - -3.6 7.80 6.66 272,484

Ottawa, ON 12,123,116 30.58 -2.8 -2.2 8.86 9.70 -69,890

Regina, SK 395,432 N/A N/A N/A - - -

Toronto, ON 31,584,389 30.59 -0.1 1.0 9.40 8.87 306,382

Vancouver, BC 13,426,379 33.50 0.4 -6.9 11.13 9.91 179,328

Victoria, BC 770,939 38.00 - -5.0 8.39 13.98 32,512

Waterloo Region, ON 3,422,481 24.15 -0.8 -0.6 10.39 9.99 13,845

CANADA TOTAL* 89,796,089 31.94 0.2 -0.5 9.08 8.72 932,403

*Edmonton and Winnipeg do not track Suburban Class A inventory.




UNITED STATES | OFFICE INVESTMENT

MARKETCBD

SALES PRICE(USD PSF)

CBDCAP RATE

(%)

SUBURBANSALES PRICE

(USD PSF)

SUBURBANCAP RATE

(%)

Atlanta, GA 170.00 7.7 125.00 8.3

Baltimore, MD 48.01 131.82 7.5

Boise, ID 84.73 7.4

Boston, MA 246.00 5.5 154.48

Charleston, SC 250.00 8.0 135.00 11.0

Chicago, IL 350.00 6.5 225.00 7.5

Cincinnati, OH 120.00 9.8 137.50 9.5

Columbia, SC 180.00

Columbus, OH 67.40 80.58 8.2

Dallas, TX 150.00 7.0

Denver, CO 144.00 6.5 125.00 7.4

Detroit, MI 75.29 10.3 47.89

Faireld County, CT 243.00 5.0Fresno, CA 125.00 9.0 175.00 8.5

Ft. Lauderdale-Broward, FL 175.00 167.00 7.5

Grand Rapids, MI 102.56 8.8

Hartord, CT 95.87 7.8

Houston, TX 200.00 7.3

Indianapolis, IN 165.00 9.0 155.00 8.5

Jacksonville, FL 150.00 8.5

Las Vegas, NV 132.60

Long Island, NY 190.23 7.6

Los Angeles, CA 200.00 8.0

Los Angeles Inland Empire, CA 191.00 7.0 247.00 6.6

Memphis, TN 32.57 9.0 84.25

Miami-Dade, FL 285.00 6.0 239.00 5.4

Milwaukee, WI 120.00 9.0 100.00 9.5

Minneapolis, MN 121.27 7.3

Nashville, TN 200.00 7.0 120.00 7.0

New Jersey Central 172.00 7.5

New Jersey Northern 190.00 7.9

New York, NY Downtown Manhattan 533.00 5.0

New York, NY Midtown Manhattan 712.00 5.0

New York, NY Midtown South Manhattan 400.00 5.2Oakland, CA 152.47 7.5 111.49 8.5

Orange County, CA 350.00 6.3

Orlando, FL 175.00 8.0 135.00 8.3

Philadelphia, PA 150.00 8.0 159.00 8.0

Phoenix, AZ 65.00 8.0 108.00 7.5

Pittsburgh, PA 130.00 8.0 105.00 8.3

Portland, OR 175.11 8.8 131.62 7.3

Sacramento, CA 151.44 128.97 8.9

San Diego, CA 244.52 6.7 218.44 6.8


19/19


COLLIERS INTERNATIONAL Union Street, Suite

Seattle, WA TEL +

FOR MORE INFORMATION

K.C. Conway

Executive Managing Director,

Market Analytics | USATEL +

EMAIL [email protected]

James Cook

Director o Research | USA

TEL + EMAIL [email protected]

CONTRIBUTORS

Jef Simonson

Senior Research Analyst | USA

Jennier Macatiag

Graphic Designer | USA

Clif Plank

National Director | GIS & Mapping

oces in countries on continentsUnited States:

Canada: Latin America:

Asia Pacic: EMEA:

$1.8 billion in annual revenue

1.25 billion square eet under

management

Over 12,300 proessionals and staf

Copyright Colliers International.

The inormation contained herein has been obtained rom sources

deemed reliable. While every reasonable efort has been made toensure its accuracy, we cannot 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

MARKETCBD

SALES PRICE(CAD PSF)

CBDCAP RATE

(%)

SUBURBANSALES PRICE

(CAD PSF)

SUBURBANCAP RATE

(%)

San Francisco, CA 500.00 5.0

San Francisco Peninsula 250.00 7.0San Jose/Silicon Valley 280.00 7.0 350.00 6.0

Savannah, GA 150.00 9.5 120.00 9.8

Seattle/Puget Sound, WA 170.22 4.4 367.60 7.4

St. Louis, MO 85.00 9.8 120.00 8.8

Stamord, CT 72.00 8.0

Tampa Bay, FL 115.62 7.4 120.87 9.0

Walnut Creek/Pleasanton, CA 210.00 7.5 180.00 8.0

Washington, DC 575.00 5.6 260.00 6.5

West Palm Beach/Palm Beach County, FL 122.00 188.00 6.4

Westchester County, NY 125.00 8.0

White Plains, NY 72.00 8.0

U.S. AVERAGES* 204.62 7.4 163.49 7.8

CANADA | OFFICE INVESTMENT

Calgary, AB 550.00 5.5 460.00 5.8

Edmonton, AB 354.67 5.8

Montral, QC 275.00 6.5 190.00 7.3

Ottawa, ON 360.00 6.3 165.00 7.4

Regina, SK 125.00 7.0

Saskatoon, SK 240.00 7.0

Victoria, BC 354.00 6.2 280.00 6.3

Waterloo Region, ON 140.00 7.3 150.00 7.5

CANADA AVERAGES* 299.83 6.4 249.00 6.8

*Straight averages used.

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 netbasis ater any demolitions or conversions.

Annual Quoted Rent Includes all costs associated

with occupying a ull oor 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 per squarefoot basis. Rent calculations do not include sublease space.

CapRate (Or going-in cap rate) Capitalization rates

in this survey are based on multi-tenant institutionalgrade buildings ully leased at market rents. Cap rates

are calculated by dividing net operating income (NOI)

by purchase price.

Note: SF = square eet

MSF = million square eet PSF = per square oot

CBD = central business district

Glossary

(continued)

colliers north american office highlights q4-12

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