Colliers 2012 Q1 North American Office Highlights
 

Colliers 2012 Q1 North American Office Highlights

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    Colliers 2012 Q1 North American Office Highlights Colliers 2012 Q1 North American Office Highlights Document Transcript

    • Q1 2012 | OFFICENORTH AMERICAHIGHLIGHTS Office Demand Steady on Strength of ICEE Industries K.C. CONWAY EMD | Market AnalyticsMARKET INDICATORSRelative to prior period The Bottom Line • A national rebalancing of business growth from FIRE (Finance, Insurance and Real Estate) to ICEE Q1 Q2 2012 2012* (Intellectual Capital, Energy and Education) has shifted office demand to cities with ICEE industry concentrations. VACANCY • An oncoming wave of maturing debt will soon change the volume and tenor of sales transactions. • National office absorption remains steady, but a full robust recovery is still in the future. NET ABSORPTION • ffice construction is still low, with only 9.4 MSF of new supply delivered in Q1 2012. O CONSTRUCTION Measured Rebalancing RENTAL RATE We often use the term “measured rebalancing” to describe the current state of the U.S. office property *Projected market. This refers to the long process of working through an oversupply of office space according to materially different demand drivers. The market must recalculate the amount of office space required, and recalibrate in areas that space demand has shifted. NORTH AMERICAN OFFICE VACANCY, INVENTORY AND ABSORPTION—Q1U.S. OFFICE MARKETSUMMARY STATISTICS, Q1 2012 6.7% vac.Vacancy Rate: 14.95% Change from Q4 2011: –0.09%Absorption:8.1 Million Square Feet 13.5% vac. 15.3% vac.New Construction: 15.3% vac. Absorption Per Market 16.3% vac.7.5 Million Square Feet Q4 11 - Q1 12 1,200,000Under Construction: 120,00038 Million Square Feet -120,000 -1,200,000Asking Rents Per Square Foot 15.3% vac. (Change from Q4 2011): 15.3% vac. Sq. Ft. By RegionDowntown Class A: $40.96 (+0.56%) 4 million 2.00000000e+009 2 million 1.00000000e+009Suburban Class A: $26.14 (+1.07%) 400,000 2.00000000e+008 Total_OffSF-Vacant_OffSF Occupied Sq. Ft. Vacant_OffSF Vacant Sq. Ft.WWW.COLLIERS.COM
    • HIGHLIGHTS | Q1 2012 | OFFICE | NORTH AMERICA ICEE Markets on Fire FIRE Markets on Ice • Houston and Calgary were the only two markets with over 1 million • Atlanta and Los Angeles were the only two metros with inventories square feet (MSF) of absorption in Q1 2012. over 200 million SF and vacancies over 17.5 percent. • Toronto boasted the lowest vacancy (5.3 percent) of any market with • Los Angeles and Orange County each had vacancy rates over 18 over 10 MSF of inventory. percent. • Seattle ranks 5th highest in absorption, with a vacancy rate below • Central New Jersey showed the worst absorption of the top 20 13 percent. office markets. • Silicon Valley was in the top 10 US markets for decreased vacancy • Chicago saw negative absorption and 15 percent vacancy. rate. • West Palm Beach experienced negative absorption and 19.5 percent • Baltimore and Washington DC each boast a vacancy rate below 15 vacancy. percent. • Midtown South Manhattan saw negative absorption in Q1 2012. • Raleigh boasts a vacancy rate below 12.5 percent and saw positive • Phoenix suffered from negative absorption and a vacancy rate over absorption for the quarter. 22 percent.Prior to the housing and financial crises, office demand was aligned with Rents and Absorption Showed Improvement over Last Year The U.S. hasgrowth in financial services and the over-heated housing markets. New seen a sustained modest improvement in vacancy and absorption in recentbank charters, growing numbers of subprime lenders and unparalleled quarters. However, a more robust recovery in office demand—such as isdemand for residential and commercial mortgage-backed securities all occurring in multifamily and industrial real estate—remains elusive.propelled a need for more office space in markets with high concentrations Uncertainties in the economy are keeping businesses from hiring and leas-of these industries, such as Chicago, Los Angeles and New York. As the ing offices.subsequent recession and recovery has unfolded, financial and real estatebusinesses are no longer growing in the way they once were. Now, a new For Q1 2012, approximately 14.9 percent of the inventory that Colliersset of demand drivers has taken hold. tracks was vacant; an improvement of 8 basis points from year-end 2011. With only 7.5 MSF of new supply delivered to these 81 markets in Q1, netICEE Markets on Fire One of the key differences between improving and absorption was a positive 8.1 MSF. With this amount of vacant space, andlagging office markets is the type of industry concentrations each has. anemic office-related job growth, office rents improved just marginally inOffice space demand is now driven by tech industries in ‘Knowledge the 36 CBD markets that reported rent increases. The other 36 CBD mar-Gateway’ markets, such as Austin, Boston and Silicon Valley; and energy kets registered flat or declining rents. Thirty-two Suburban markets re-corridor markets extending north from Houston into Canada. As some ported rent growth, while 37 suburban markets reported flat or decliningmanufacturing returns to the U.S. from Asia and India, office demand is quarter-over-quarter rents. Class A CBD rents improved from $40.73 peralso growing in inland manufacturing markets in the Midwest and port square foot to $40.96 per square foot. Class A Suburban rents increasedmarkets along the Gulf Coast, South Florida and the Mid-Atlantic States— from $25.86 to $26.14 per square foot.especially Miami, Virginia and North Carolina.We have chosen two categories to distinguish between leading and laggingindustries: FIRE and ICEE.• Finance,Insurance and Real Estate (FIRE) markets are seeing stalled SELECT INTELLECTUAL CAPITAL, ENERGY AND EDUCATION (ICEE) CITIES growth in demand for office space. Calgary• IntellectualCapital, Energy and Education (ICEE) markets feature con- Seattle centrations in a combination of technology, higher education and energy industries. These growing industries are pushing up demand for office Toronto space in select markets, especially in Class A buildings.Office demand has shifted away from FIRE and toward ICEE, thereby fa- Silicon Valley Baltimore Denvervoring cities with higher concentrations of ICEE industries. Washington Raleigh“Office space demand is now driven by techindustries in ‘Knowledge Gateway’ markets, Austinsuch as Austin, Boston and Silicon Valley; and Houstonenergy corridor markets extending north fromHouston into Canada.”P. 2 | COLLIERS INTERNATIONAL
    • HIGHLIGHTS | Q1 2012 | OFFICE | NORTH AMERICA US GDP PRE-2008/2009 FINANCIAL CRISIS THROUGH Q1 2012“In many cases, the shift in office demand 6drivers from FIRE to ICEE has been the engine 4 2 3.6 3 3.8 3.9 3.8 3of growth for these stand-out markets.” 2.5 2.3 0.5 1.7 1.3 1.7 0.4 1.8 1.8 1.3 0 -1.8 -0.7 -2 -3.7 -4Slow Recovery Makes Businesses Hesitate to Expand Owners and inves- -6 -6.7tors held out the hope at the onset of 2012 that the rebound in multifamily -8and industrial real estate demand would soon spill over to the office sector. -8.9 -10This hope was rooted in a number of promising economic metrics: in Q2 Q3 Q4 Q1 2008 Q2 Q3 Q4 Q1 2009 Q2 Q3 Q4 Q1 2010 Q2 Q3 Q4 Q1 2011 Q2 Q3 Q4 Q1 2012 Q1 2007March, it was confirmed that GDP expanded during the final quarter of 2011by 3 percent; the unemployment rate declined to 8.3 percent; and the labormarket delivered 227,000 new jobs in February. However, the start of2012 now seems eerily similar to that of 2011, which began with positiveeconomic indicators that fizzled out as the year progressed. Now a more of the 60 markets that contain less than 100 MSF of inventory saw nega-robust economic recovery remains elusive amidst uncertainties stemming tive absorption. This trend suggests that, despite the strategy of institu-from upcoming elections and concerns about the impact of the European tional capital which pursues properties in core markets with at least 100Crisis on the U.S. economy. Businesses and investors are anxious about MSF of office inventory, investors should begin to look beyond the 7/11smaking long-term investment decisions. (the core 11 markets in 7 states). Office demand in secondary markets such as Raleigh and the Silicon Valley is being driven by ICEE, but beyondPockets of Strength While a robust recovery remains elusive at the national these markets much of the demand is being fueled by a more traditionallevel, macro market averages tell just a part of the office property sector set of drivers. A boom in agriculture and manufacturing growth is stimu-story. A more detailed look shows a market split into areas of strong and lating some office demand in markets such as Boise, Charlotte, Grandweak demand. In many cases, the shift in office demand drivers from FIRE to Rapids, Indianapolis, Louisville and Nashville.ICEE has been the engine of growth for these stand-out markets.• The largest markets are experiencing more robust office demand, with ICEE as a major driver. More than half of the total net absorption in Q1 High Office CMBS Delinquencies Set the Stage The volume and tenor of came from the 21 largest markets. Approximately 2.6 MSF of this net ab- transaction activity is set to change, as the wave of maturing office debt sorption (24 percent of 10.8 MSF North American total.) came from ICEE creeps into focus. The news remains disconcerting. The delinquency rate markets ranked among the 21 largest metros. for U.S. commercial real estate loans in CMBS increased another 12 basis• In terms of occupancy rates, the largest U.S. markets are in line with the points in April to 9.3 percent, as reported by TREPP. The value of delin- overall U.S. rate. The 10 largest markets (Midtown Manhattan, Midtown quent loans is now $58.1 billion. The office property delinquency rate was Manhattan South, Washington, D.C., Chicago, Dallas, Atlanta, Los Angeles, up 85 basis points, setting a new all-time high of 10.23 percent. Houston, Boston and Philadelphia) have a vacancy rate of around 15 percent.• The next ten largest markets show a lower vacancy rate, thanks to the support of three ICEE markets. The metros ranked 11th to 2nd in size (Toronto, Denver, Northern New Jersey, Detroit, Phoenix, Cleveland, Seattle, Pittsburgh, Minneapolis, Central New Jersey, Charlotte and Baltimore) have DELINQUENCY RATES BY PROPERTY TYPE an average vacancy rate of 14.1 percent, 85 basis points lower than the aver- APR - 12 MAR - 12 FEB - 12 3 MO 6 MO 1 YR age for the U.S.• The highest vacancies are concentrated in California and the Northeast. Industrial 12.36 12.54 12.37 12.14 11.59 10.76 Approximately one-third of the markets have an average vacancy rate above 15 percent. Of these 27 markets, seven are located in California and five are Lodging 10.55 10.63 11.05 12.09 14.12 15.45 located in the Northeast, where FIRE is the primary office demand driver.• ICEE drives much of major market absorption. Only two markets had Multifamily 15.18 15.39 14.65 15.39 16.73 16.77 in excess of 1 MSF of net absorption, and both were ICEE markets: Houston and Calgary. Only eight metros had net office absorption in ex- Office 10.23 9.41 9.04 8.90 8.95 7.20 cess of 500,000 square feet (Calgary, Houston, Toronto, Seattle, Atlanta, Retail 7.98 8.24 8.00 7.88 7.61 8.15 NY – Midtown Manhattan, NY – Downtown Manhattan, and Philadelphia), and half of these were ICEE markets. Overall 9.80 9.68 9.37 9.52 9.77 9.65• Investors should look beyond the core, as secondary markets show Source: Trepp some strength, driven by ICEE, manufacturing and agriculture. Only 19P. 3 | COLLIERS INTERNATIONAL
    • HIGHLIGHTS | Q1 2012 | OFFICE | NORTH AMERICAStabilized and Distressed Sales Set Two Very Different Pricing Benchmarks The ICEE markets Excluding renewals, of the leases signedwill continue to attract a disproportionate share of investment capital slated for office properties this quarter in your CBD/downtown,in 2012, thanks to positive absorption, declining vacancy and strong office-related job growth. But did most tenants:unlike the distinction in demand between FIRE and ICEE, there is another story of extreme bifur-cation in transaction volume and pricing: the split between the highly valued stabilized assets incore markets and the distressed and overleveraged properties working their way through debt Expandrestructuring. 45% Contract 49%Institutional capital is still focused on stabilized assets in core markets, regardless of the office Holding Steadydemand drivers, with transaction activity concentrated in a few major markets; New York, 6%Washington, D.C., Chicago, Boston, Houston, Los Angeles, San Francisco, Seattle, Dallas, Atlantaand Denver were all markets with more than $1.5 billion in office transaction activity in 2011 andthey continue to lead investment activity in Q1 2012, according to data from Real Capital Analytics.Much of the institutional investment in Atlanta and Chicago represents opportunistic distressedasset investment by those wishing to capitalize on overleveraged CMBS office debt maturities anddefaults. The remaining eight markets represent the core financial service, technology and energy What was the trend for Free Rent (in Months) offered by CBD Landlordsmarkets. Institutional capital believes these eight markets have the most compelling metrics and this quarter?yield for investment objectives.Two recent office transactions illustrate the pricing dichotomy between stabilized properties in Less Morecore markets and distressed or overleveraged properties. 12% 6%• $550 per square foot for Seattle’s 872,000-square-foot Russell Investment Center Same• $101 82% per square foot for Minneapolis’ 1.1-million-square-foot Fifth Street Towers office complexThe Russell Investment Center in Seattle, built in 2006, was originally the corporate headquartersof Washington Mutual. As fallout of the financial crisis, the property was left without a tenant. In2009, Northwest Mutual paid $132 per square foot for this mostly vacant CBD Seattle office build-ing. Since then, the property attracted investment-grade tenants leasing up 95% of its available What was the trend for Tenantspace. In three years, Northwest Mutual more than quadrupled its investment. This transaction Improvement Allowances ($ per SF)shows the high price that institutional capital will pay for a prime property in a core market—sales offered by Landlords this quarter?above $500 per square foot are no longer atypical in Boston, Houston and Seattle—where there iscertainty of cash-flow stability. This kind of turnaround story is what investors in the over-lever-aged Atlanta, Charlotte, Chicago and Phoenix markets are anticipating. Less More 12% 3%The Minneapolis Fifth Street Towers office complex exemplifies a very different type of transaction.This 1.1 MSF 1985 vintage property was purchased in a foreclosure auction sale with an occupancy Samethat had fallen to 60 percent. The $101 per square price shows the relatively low ceiling that in- 85%vestment capital is willing to pay for over-leveraged and distressed office assets requiring bothfurther funds and considerable management expertise in order to re-stabilize. U.S. OFFICE MARKET Q1 2010 – Q1 2012 20 18.00 Excluding renewals, of the leases 16.32 16.29 16.26 16.11 15.57 15.36 15.14 15.03 14.95 16.0 signed this quarter in your Suburban 15 office market, did most tenants: 14.0 10 12.0 Million Square Feet 10.0 Vacancy (%) 5 Holding Steady 8.0 0 6.0 8% Absorption dipped slightly below Contract 4.0 Expand 44% Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 -5 expectations in the 48% 2.0 beginning of 2012. -10 We attribute much of this to the Absorption Completions Vacancy post-holiday slump in leasing activity.P. 4 | COLLIERS INTERNATIONAL
    • HIGHLIGHTS | Q1 2012 | OFFICE | NORTH AMERICARents and Office Construction at a Crawl, but ICEE Markets Show Signs publisher SAS Institute announced in March that it will build anotherof Life Only 9.5 MSF of new supply was delivered in Q1 2012, just 0.2 213,000 square feet on its Cary campus later this year. SAS was not ablepercent of the total 6.3 billion square feet of existing office inventory. The to find existing expansion space. This is not the first new construction forlack of significant office construction has helped to bolster current office SAS. In 2011, it opened a 287,000 square foot building, and added 367 jobs.demand and will intensify future demand when it returns. Stabilized office When this latest building is completed in late 2014, SAS will add anothermarkets with vacancy rates of 10–15 percent and 1.5–2.0 percent job 650 office workers to its existing 5,000 Cary, NC, employees.growth require existing inventory to expand by approximately 2.0 percent tomaintain market equilibrium and keep rents from rising. At such a growth This same kind of growth and demand for office space is occurring in otherrate, the nation would require 122.8 MSF—more than eight times the cur- technology and energy markets, such as Austin, Baltimore, Denver, Sanrent new supply. With so little new supply in the pipeline, the stage is set for Jose/Silicon Valley, Seattle and Portland.continued improvement in office vacancy, especially in the ICEE markets.• The markets that saw the most new deliveries of space in Q1 2012 were “The market must recalculate the amount of New York, Calgary, Washington, D.C., Houston, Philadelphia, Baltimore and Louisville. office space required, and recalibrate in areas that space demand has shifted.”In some cases, the absence of available properties in technology and energymarkets is stimulating new construction activity. This has caused an uptickin Houston’s office construction, where 915,000 square feet of new supplywas delivered in Q1 2012. It has also spurred unexpected construction insome smaller markets. In the Raleigh market, for example, softwareDowntown Houston, TX; Source: Thinkstock.com COLLIERS INTERNATIONAL | P. 5
    • HIGHLIGHTS | Q1 2012 | OFFICE | NORTH AMERICAUNITED STATES | DOWNTOWN OFFICE | ALL INVENTORY EXISTING NEW SUPPLY UNDER VACANCY VACANCY ABSORPTION INVENTORY (SF) Q1 2012 CONSTRUCTION RATE (%) RATE (%) Q1 2012MARKET MAR. 31, 2012 (SF) (SF) DEC. 31, 2011 MAR. 31, 2012 (SF)NORTHEASTBaltimore, MD 29,115,000 34,000 - 15.3 15.3 28,000Boston, MA 61,047,000 - 1,810,000 15.8 15.4 153,000Hartford, CT 9,715,000 - - 24.3 25.1 (35,000)New York, NY—Downtown 110,942,000 2,845,000 5,200,000 15.9 16.0 707,000ManhattanNew York, NY—Midtown 227,532,000 740,000 1,052,000 11.9 11.7 766,000ManhattanNew York, NY—Midtown 165,369,000 35,000 850,000 8.7 8.6 (53,000)South ManhattanPhiladelphia, PA 43,114,000 - - 11.4 11.6 (93,000)Pittsburgh, PA 32,234,000 - - 10.3 9.8 (50,000)Stamford, CT 19,273,000 - - 18.8 18.7 162,000Washington DC 140,860,000 - 2,107,000 10.5 10.3 285,000White Plains, NY 7,800,000 - - 14.3 14.8 (26,000)NORTHEAST TOTAL/ 3,654,000 847,001,000 11,019,000 12.2 12.1 1,844,000AVERAGESOUTHAtlanta, GA 49,946,000 - 450,000 17.9 17.6 154,000Charleston, SC 2,068,000 - - 7.6 9.0 (18,000)Charlotte, NC 23,188,000 - - 11.1 11.3 37,000Columbia, SC 4,964,000 - - 24.1 23.8 (30,000)Dallas/Fort Worth, TX 45,550,000 - - 23.8 24.2 (175,000)Ft. Lauderdale-Broward, FL 8,129,000 - - 16.6 16.1 68,000Houston, TX 38,333,000 - - 16.6 14.3 267,000Jacksonville, FL 15,902,000 - - 13.6 14.5 10,000Little Rock, AR 6,538,000 - - 16.0 15.3 1,000Louisville, KY 51,664,000 233,000 195,000 11.4 11.0 461,000Memphis, TN 13,366,000 - - 18.2 18.1 56,000Miami-Dade, FL 17,774,000 - - 20.9 20.5 72,000Nashville, TN 8,114,000 530,000 90,000 22.7 22.9 1,000Oklahoma City, OK 9,576,000 - 1,800,000 16.5 15.1 133,000Orlando, FL 12,704,000 - - 13.1 11.8 164,000Raleigh/Durham/Chapel 12,338,000 - 402,000 5.8 5.7 (44,000)Hill, NCSavannah, GA 747,000 - 72,000 16.9 15.1 13,000Tampa Bay, FL 8,423,000 - - 14.3 14.0 1,000West Palm Beach/Palm 10,047,000 - - 18.2 18.5 (55,000)Beach County, FLSOUTH TOTAL/AVERAGE 339,371,000 763,000 3,009,000 16.4 16.0 1,116,000 COLLIERS INTERNATIONAL | P. 6
    • HIGHLIGHTS | Q1 2012 | OFFICE | NORTH AMERICA UNITED STATES | DOWNTOWN OFFICE | ALL INVENTORY EXISTING NEW SUPPLY UNDER VACANCY VACANCY ABSORPTION INVENTORY (SF) Q1 2012 CONSTRUCTION RATE (%) RATE (%) Q1 2012 MARKET MAR. 31, 2012 (SF) (SF) DEC. 31, 2011 MAR. 31, 2012 (SF) MIDWEST Chicago, IL 158,755,000 - - 14.1 14.1 (35,000) Cincinnati, OH 18,008,000 - - 17.8 17.8 (9,000) Cleveland, OH 34,162,000 - 475,000 18.5 18.4 26,000 Columbus, OH 19,358,000 - - 10.9 10.9 6,000 Detroit, MI 32,988,000 - - 19.4 20.5 (243,000) Grand Rapids, MI 5,457,000 - - 24.2 24.7 (37,000) Indianapolis, IN 23,453,000 - - 13.6 13.8 (43,000) Kansas City, MO 35,108,000 - - 13.0 13.1 (55,000) Minneapolis, MN 32,612,000 - 62,000 14.6 13.8 271,000 Omaha, NE 6,382,000 - - 7.4 6.0 - St. Louis, MO 27,494,000 - - 19.1 19.2 (17,000) St. Paul, MN 13,638,000 - - 13.8 13.4 54,000MIDWEST TOTAL/AVERAGE 407,415,000 - 537,000 15.2 15.2 (82,000) WEST Bakersfield, CA 3,010,000 - - 9.9 10.1 (10,000) Boise, ID 3,697,000 - 260,000 12.0 11.6 2,000 Denver, CO 34,361,000 - 382,000 12.5 12.1 172,000 Fresno, CA 3,285,000 - - 12.0 12.0 - Honolulu, HI 7,113,000 - - 14.0 14.1 (10,000) Las Vegas, NV 4,183,000 - 129,000 12.7 13.3 (22,000) Los Angeles, CA 31,943,000 - 257,000 18.0 17.8 (30,000) Oakland, CA 16,892,000 - - 13.3 13.5 (28,000) Phoenix, AZ 20,176,000 - - 20.7 22.2 (337,000) Portland, OR 34,055,000 - 133,000 8.7 9.1 (129,000) Reno, NV 3,921,000 - - 19.8 15.4 (1,000) Sacramento, CA 19,038,000 - - 10.3 10.1 51,000 San Diego, CA 10,150,000 - - 19.8 20.0 20,000 San Francisco, CA 87,205,000 - 1,908,000 12.4 12.2 333,000 San Jose—Silicon Valley 7,602,000 - - 23.5 24.6 (91,000) Seattle/Puget Sound, WA 56,057,000 - 544,000 13.9 13.0 525,000 Stockton, CA 8,200,000 - - 19.9 19.7 30,000 Walnut Creek/Pleasanton, CA 12,637,000 - - 17.2 17.4 (24,000)WEST TOTAL/AVERAGE 363,525,000 - 3,613,000 14.0 13.9 451,000U.S. TOTAL/AVERAGE 1,957,312,000 4,417,000 18,178,000 13.9 13.7 3,329,000P. 7 | COLLIERS INTERNATIONAL
    • HIGHLIGHTS | Q1 2012 | OFFICE | NORTH AMERICAUNITED STATES | DOWNTOWN OFFICE | CLASS A AVG ANNUAL QUARTERLY EXISTING VACANCY VACANCY ABSORPTION QUOTED RENT CHANGE IN ANNUAL CHANGE INVENTORY (SF) RATE (%) RATE (%) Q1 2012 (USD) RENT IN RENTMARKET MAR. 31, 2012 DEC. 31, 2011 MAR. 31, 2012 (SF) MAR. 31, 2012 (%) (%)NORTHEASTBaltimore, MD 13,728,000 16.3 16.4 12,000 23.25 3.7% -3.7%Boston, MA 41,259,000 15.3 15.0 106,000 45.83 -4.0% -0.1%Hartford, CT 6,383,000 23.5 24.1 (44,000) 22.86 0.4% -0.6%New York, NY—Downtown Manhattan 77,673,000 18.1 18.3 594,000 48.32 0.3% 25.6%New York, NY—Midtown Manhattan 192,291,000 12.6 12.5 711,000 68.61 1.3% 8.3%New York, NY—Midtown South Manhattan 32,865,000 7.8 8.1 (32,000) 49.22 0.8% 4.0%Philadelphia, PA 32,961,000 11.2 11.2 17,000 26.40 0.0% 1.1%Pittsburgh, PA 17,957,000 8.0 8.2 (36,000) 22.63 0.2% 0.4%Stamford, CT 13,300,000 19.9 20.0 (24,000) 38.99 -5.3% -3.1%Washington DC 85,274,000 12.7 12.1 583,000 52.80 -0.1% -0.3%White Plains, NY 4,969,000 16.7 17.3 (15,000) 31.63 -2.0% 5.6%NORTHEAST TOTAL/AVERAGE 518,660,000 13.6 13.5 1,872,000 52.78 0.3% 6.9%SOUTHAtlanta, GA 29,994,000 19.5 19.3 84,000 22.92 0.8% 1.1%Charleston, SC 1,043,000 5.9 5.1 8,000 29.96 2.8% 4.2%Charlotte, NC 16,174,000 12.6 13.6 (66,000) 23.49 -3.2% -2.1%Columbia, SC 2,023,000 15.5 14.7 (8,000) 14.48 -24.4% -25.7%Dallas/Fort Worth, TX 28,056,000 20.4 21.1 (197,000) 25.00 0.0% -1.0%Ft. Lauderdale-Broward, FL 4,454,000 23.8 22.4 64,000 31.37 0.4% -2.4%Houston, TX 26,122,000 14.3 10.9 239,000 36.42 3.2% 6.5%Jacksonville, FL 6,830,000 19.5 19.5 (24,000) 19.36 1.3% 2.4%Little Rock, AR 2,636,000 10.0 10.2 (3,000) 15.68 0.5% -5.5%Louisville, KY 10,222,000 12.7 11.6 226,000 19.42 -4.8% -6.0%Memphis, TN 3,934,000 18.0 17.2 30,000 33.82 1.6% -2.8%Miami-Dade, FL 9,389,000 25.5 24.6 78,000 40.38 -2.1% -2.6%Nashville, TN 3,619,000 22.7 21.4 6,000 22.92 1.6% 1.1%Oklahoma City, OK 1,950,000 12.1 6.4 111,000 17.18 0.0% N/AOrlando, FL 5,740,000 17.1 15.4 94,000 23.73 -1.4% 3.4%Raleigh/Durham/Chapel Hill, NC 4,902,000 7.0 6.9 (6,000) 24.00 6.4% -0.5%Savannah, GA 570,000 10.8 12.2 (8,000) 19.15 -0.3% N/ATampa Bay, FL 4,783,000 15.8 15.5 (9,000) 23.09 2.1% 2.5%West Palm Beach/Palm Beach County, FL 3,323,000 21.5 20.9 (6,000) 37.11 0.8% 0.6%SOUTH TOTAL/AVERAGE 165,764,000 17.3 16.6 613,000 26.26 0.2% 0.1% COLLIERS INTERNATIONAL | P. 8
    • HIGHLIGHTS | Q1 2012 | OFFICE | NORTH AMERICA UNITED STATES | DOWNTOWN OFFICE | CLASS A AVG ANNUAL QUARTERLY EXISTING VACANCY VACANCY ABSORPTION QUOTED RENT CHANGE IN ANNUAL CHANGE INVENTORY (SF) RATE (%) RATE (%) Q1 2012 (USD) RENT IN RENT MARKET MAR. 31, 2012 DEC. 31, 2011 MAR. 31, 2012 (SF) MAR. 31, 2012 (%) (%) MIDWEST Chicago, IL 60,452,000 14.9 15.4 (301,000) 37.27 0.5% -0.6% Cincinnati, OH 8,815,000 19.1 20.1 (92,000) 23.25 -0.5% 9.0% Cleveland, OH 9,728,000 12.9 12.1 81,000 21.65 4.7% 2.5% Columbus, OH 8,106,000 11.3 11.2 6,000 19.64 4.5% 2.0% Detroit, MI 11,513,000 15.8 19.1 (372,000) 22.50 0.2% -2.2% Grand Rapids, MI 1,542,000 23.2 23.6 (39,000) 20.90 -0.3% 0.1% Indianapolis, IN 9,929,000 18.9 19.1 (36,000) 19.29 0.7% -0.4% Kansas City, MO 10,270,000 16.5 17.7 (120,000) 19.23 -1.7% -1.6% Minneapolis, MN 14,162,000 12.7 11.8 137,000 15.08 0.0% N/A Omaha, NE 3,418,000 3.6 3.6 3,000 19.87 3.0% 5.7% St. Louis, MO 10,678,000 15.0 16.9 (227,000) 17.53 -1.4% -5.5% St. Paul, MN 3,123,000 9.8 9.8 91,000 11.10 0.0% N/A MIDWEST TOTAL/AVERAGE 151,736,000 14.8% 15.4 (869,000) 26.44 0.6% -5.7% WEST Bakersfield, CA 670,000 3.8 5.0 (8,000) 17.40 0.0% 0.0% Boise, ID 2,057,000 7.6 8.2 (12,000) 19.08 2.5% 6.0% Denver, CO 21,064,000 12.6 11.4 243,000 28.52 1.7% 5.5% Fresno, CA 1,058,000 12.4 12.4 - 26.00 0.0% 5.7% Honolulu, HI 4,960,000 13.7 14.0 (17,000) 35.16 1.0% 0.3% Las Vegas, NV 808,000 9.1 11.2 (18,000) 30.60 -1.5% -12.1% Los Angeles, CA 17,750,000 15.4 15.2 (38,000) 38.40 -0.3% -0.3% Oakland, CA 10,198,000 11.7 11.7 12,000 31.56 -0.4% 1.2% Phoenix, AZ 9,554,000 20.4 20.4 (2,000) 23.47 -0.4% -2.5% Portland, OR 13,206,000 7.1 7.9 (109,000) 25.07 -0.5% -1.3% Reno, NV 667,000 16.8 19.2 (5,000) 22.05 -4.3% -5.8% Sacramento, CA 9,062,000 9.1 8.7 24,000 32.27 -0.2% 0.4% San Diego, CA 7,254,000 16.9 17.7 (42,000) 28.20 -0.4% -1.7% San Francisco, CA 52,917,000 12.0 12.0 414,000 43.51 5.8% 21.0% San Jose—Silicon Valley 3,365,000 29.1 29.2 (4,000) 31.80 -0.7% -1.9% Seattle/Puget Sound, WA 32,121,000 16.9 15.5 431,000 30.13 0.1% 3.4% Stockton, CA 2,769,000 30.0 29.8 1,000 20.40 -3.4% -5.6% Walnut Creek/Pleasanton, CA 8,234,000 15.2 15.2 (2,000) 27.60 0.4% 0.0% WEST TOTAL/AVERAGE 197,714,000 13.9 13.7 868,000 33.43 2.1% 7.2%US TOTAL/AVERAGE 1,033,874,000 14.4 14.3 2,484,000 40.96 0.6% 4.3%P. 9 | COLLIERS INTERNATIONAL
    • HIGHLIGHTS | Q1 2012 | OFFICE | NORTH AMERICA UNITED STATES | SUBURBAN OFFICE | ALL INVENTORY EXISTING NEW SUPPLY UNDER VACANCY VACANCY ABSORPTION INVENTORY (SF) Q1 2012 CONSTRUCTION RATE (%) RATE (%) Q1 2012 MARKET MAR. 31, 2012 (SF) (SF) DEC 31, 2011 MAR. 31, 2012 (SF) NORTHEAST Baltimore, MD 65,087,000 194,000 - 14.4 14.3 195,000 Boston, MA 106,977,000 - 667,000 19.6 19.8 (442,000) Fairfield County, CT 41,560,000 - - 11.1 11.2 (9,000) Hartford, CT 12,437,000 - - 18.0 17.5 66,000 Long Island, NY 71,209,000 - 96,000 10.7 10.3 247,000 New Jersey—Central 103,675,000 - - 16.1 16.7 (693,000) New Jersey—Northern 137,832,000 - - 15.8 15.5 366,000 Philadelphia, PA 109,975,000 218,000 895,000 15.9 15.5 597,000 Pittsburgh, PA 93,053,000 141,000 575,000 8.0 7.9 329,000 Washington DC 305,036,000 330,000 3,893,000 14.7 15.1 (750,000) Westchester County, NY 37,713,000 - - 12.4 12.8 (148,000) NORTHEAST TOTAL/AVERAGE 1,084,554,000 883,000 6,126,000 14.5 14.6 (242,000) SOUTH Atlanta, GA 170,438,000 16,000 1,251,000 17.9 17.6 474,000 Charleston, SC 9,380,000 - - 15.5 16.2 (36,000) Charlotte, NC 74,197,000 - 644,000 13.6 13.4 198,000 Columbia, SC 5,050,000 - - 25.5 26.5 (41,000) Dallas/Fort Worth, TX 258,883,000 85,000 995,000 15.1 15.7 392,000 Ft. Lauderdale-Broward, FL 43,569,000 - - 14.1 13.9 62,000 Houston, TX 160,231,000 916,000 2,292,000 15.3 14.7 808,000 Jacksonville, FL 43,484,000 60,000 19,000 13.6 13.8 62,000 Little Rock, AR 7,433,000 - 182,000 10.5 13.5 (223,000) Memphis, TN 53,580,000 - - 14.1 14.9 (164,000) Miami-Dade, FL 62,246,000 - 369,000 14.8 14.5 305,000 Nashville, TN 27,030,000 - 243,000 10.3 8.4 69,000 Oklahoma City, OK 23,861,000 320,000 - 9.2 8.6 28,000 Orlando, FL 56,622,000 134,000 280,000 15.0 14.8 264,000 Raleigh/Durham/Chapel Hill, NC 67,294,000 - 141,000 14.2 13.6 237,000 Savannah, GA 1,555,000 - - 24.7 22.2 40,000 Tampa Bay, FL 71,716,000 - 286,000 15.7 16.1 (249,000) West Palm Beach/Palm Beach County, FL 28,408,000 - - 19.8 20.0 40,000 SOUTH TOTAL/AVERAGE 1,164,977,000 1,531,000 6,702,000 15.2 15.2 2,266,000 MIDWEST Chicago, IL 155,464,000 - 416,000 17.6 17.6 7,000 Cincinnati, OH 35,097,000 - 245,000 20.5 19.2 458,000 Cleveland, OH 94,728,000 210,000 1,081,000 10.3 10.4 194,000 Columbus, OH 43,683,000 140,000 50,000 12.6 12.5 (24,000) Detroit, MI 99,620,000 - 58,000 20.9 20.5 250,000 Grand Rapids, MI 12,791,000 - - 23.1 26.0 100,000 Indianapolis, IN 44,733,000 - - 16.1 15.9 70,000P. 10 | COLLIERS INTERNATIONAL
    • HIGHLIGHTS | Q1 2012 | OFFICE | NORTH AMERICAUNITED STATES | SUBURBAN OFFICE | ALL INVENTORY EXISTING NEW SUPPLY UNDER VACANCY VACANCY ABSORPTION INVENTORY (SF) Q1 2012 CONSTRUCTION RATE (%) RATE (%) Q1 2012MARKET MAR. 31, 2012 (SF) (SF) DEC 31, 2011 MAR. 31, 2012 (SF)Kansas City, MO 56,191,000 - 102,000 13.8 13.9 (82,000)Minneapolis, MN 83,345,000 - 467,000 13.8 13.7 121,000Omaha, NE 20,470,000 - 679,000 12.9 12.3 133,000St. Louis, MO 55,304,000 - - 12.5 10.8 47,000MIDWEST TOTAL/AVERAGE 701,426,000 350,000 3,098,000 15.5 15.4 1,274,000WESTBakersfield, CA 5,975,000 - - 8.1 7.8 26,000Boise, ID 10,883,000 - - 21.4 19.2 231,000Denver, CO 103,618,000 - 185,000 15.1 15.0 108,000Fairfield, CA 4,708,000 - - 23.7 23.5 12,000Fresno, CA 17,981,000 6,000 10,000 13.5 13.2 69,000Honolulu, HI 7,513,000 - - 13.1 13.1 2,000Las Vegas, NV 35,089,000 9,000 5,000 26.3 26.4 (18,000)Los Angeles—Inland Empire, CA 21,558,000 - 140,000 23.3 23.2 23,000Los Angeles, CA 168,450,000 - 1,123,000 18.3 18.3 95,000Oakland, CA 16,066,000 - 97,000 17.6 18.6 (107,000)Orange County, CA 80,682,000 - 380,000 18.8 18.6 (282,000)Phoenix, AZ 110,351,000 210,000 236,000 22.0 22.0 152,000Portland, OR 43,962,000 28,000 385,000 12.5 11.9 294,000Reno, NV 6,934,000 - - 19.7 16.9 1,000Sacramento, CA 72,687,000 72,000 235,000 19.4 19.4 63,000San Diego, CA 68,066,000 4,000 249,000 14.7 14.3 255,000San Francisco Peninsula 35,123,000 - - 12.5 12.5 (5,000)San Jose—Silicon Valley 53,922,000 - 447,000 14.9 13.9 367,000Seattle/Puget Sound, WA 72,785,000 - 426,000 13.1 12.9 124,000Walnut Creek/Pleasanton, CA 32,942,000 - - 15.0 14.7 96,000WEST TOTAL/AVERAGE 969,295,000 329,000 3,918,000 17.4 17.2 1,506,000U.S. TOTAL/AVERAGE 3,920,252,000 3,093,000 19,844,000 15.6 15.5 4,804,000 COLLIERS INTERNATIONAL | P. 11
    • HIGHLIGHTS | Q1 2012 | OFFICE | NORTH AMERICA UNITED STATES | SUBURBAN OFFICE | CLASS A ANNUAL EXISTING VACANCY VACANCY ABSORPTION AVERAGE ANNUAL QUARTERLY CHANGE IN INVENTORY (SF) RATE (%) RATE (%) Q1 2012 QUOTED RENT (USD CHANGE IN RENT RENT MARKET MAR. 31, 2012 DEC. 31, 2011 MAR. 31, 2012 (SF) PSF) MAR 31, 2012 (%) (%) NORTHEAST Baltimore, MD 26,571,000 15.1 15.3 (13,000) 25.41 -1.1% -1.7% Boston, MA 44,915,000 17.3 17.4 81,000 26.74 1.1% 2.2% Fairfield County, CT 17,480,000 12.2 12.0 (70,000) 37.86 17.0% 24.0% Hartford, CT 7,408,000 18.9 17.2 352,000 20.68 -1.3% 1.1% Long Island, NY 23,008,000 12.1 11.7 49,000 30.03 0.4% N/A New Jersey—Central 60,629,000 17.3 17.9 (13,000) 22.95 0.9% 0.8% New Jersey—Northern 83,843,000 14.6 14.3 81,000 23.39 -1.3% -5.2% Philadelphia, PA 67,281,000 15.3 14.9 (70,000) 24.33 1.3% 1.1% Pittsburgh, PA 17,300,000 8.1 7.6 352,000 22.69 1.7% 8.6% Washington DC 134,615,000 15.3 15.5 49,000 32.29 2.8% 3.0% Westchester County, NY 18,276,000 14.9 16.4 (13,000) 27.05 -0.6% -1.3% NORTHEAST TOTAL/AVERAGE 501,326,000 15.1 15.2 785,000 27.14 1.8% 2.3% SOUTH Atlanta, GA 78,622,000 17.4 17.2 352,000 21.64 -0.5% -1.5% Charleston, SC 3,943,000 10.8 11.5 49,000 23.13 -2.8% 0.3% Charlotte, NC 18,451,000 16.0 15.6 (13,000) 21.64 0.7% 7.1% Columbia, SC 888,000 12.9 13.2 81,000 17.46 1.3% 0.6% Dallas/Fort Worth, TX 91,879,000 16.9 17.0 (70,000) 25.00 1.0% 1.0% Ft. Lauderdale-Broward, FL 10,739,000 20.0 19.1 352,000 27.68 -0.5% -3.0% Houston, TX 67,598,000 14.4 12.4 49,000 28.86 5.6% 7.2% Jacksonville, FL 9,204,000 8.8 10.4 (13,000) 19.98 -1.6% 1.8% Little Rock, AR 2,847,000 12.3 19.1 81,000 19.14 3.3% 3.3% Memphis, TN 15,952,000 8.4 8.5 (70,000) 43.34 0.2% 1.9% Miami-Dade, FL 15,568,000 21.3 20.0 352,000 31.50 0.1% -1.5% Nashville, TN 13,484,000 6.8 5.3 49,000 21.83 -0.1% -2.3% Oklahoma City, OK 2,669,000 12.6 8.8 (13,000) 19.91 9.8% N/A Orlando, FL 16,855,000 19.7 19.1 81,000 21.99 0.0% -2.5% Raleigh/Durham/Chapel Hill, NC 25,677,000 16.4 15.9 (70,000) 21.53 -1.9% -0.7% Savannah, GA 490,000 28.0 22.6 352,000 22.62 0.0% N/A Tampa Bay, FL 23,476,000 16.4 17.3 49,000 23.03 -1.1% -0.1% West Palm Beach/Palm Beach County, 9,175,000 17.9 19.1 (13,000) 30.14 -1.4% -0.3% FL SOUTH TOTAL/AVERAGE 407,517,000 15.9 15.5 1,585,000 24.36 1.1% 1.1% MIDWEST Chicago, IL 75,536,000 18.2 18.2 (70,000) 27.30 0.4% -0.1% Cincinnati, OH 14,897,000 23.3 19.4 352,000 20.37 -0.6% 1.0% Cleveland, OH 13,174,000 10.9 10.5 49,000 21.23 -2.4% -1.6% Columbus, OH 17,977,000 10.7 10.7 (13,000) 18.31 4.9% 5.6% Detroit, MI 25,548,000 19.6 19.1 81,000 21.33 -0.8% -3.7%P. 12 | COLLIERS INTERNATIONAL
    • HIGHLIGHTS | Q1 2012 | OFFICE | NORTH AMERICAUNITED STATES | SUBURBAN OFFICE | CLASS A ANNUAL EXISTING VACANCY VACANCY ABSORPTION AVERAGE ANNUAL QUARTERLY CHANGE IN INVENTORY (SF) RATE (%) RATE (%) Q1 2012 QUOTED RENT (USD CHANGE IN RENT RENTMARKET MAR. 31, 2012 DEC. 31, 2011 MAR. 31, 2012 (SF) PSF) MAR 31, 2012 (%) (%)Grand Rapids, MI 958,000 30.5 28.6 (70,000) 19.33 0.5% 3.4%Indianapolis, IN 12,403,000 19.7 19.5 352,000 18.11 -1.1% -5.8%Kansas City, MO 14,932,000 13.8 13.7 49,000 20.25 -0.6% -1.7%Minneapolis, MN 25,466,000 15.3 15.0 (13,000) 14.17 2.2% N/AOmaha, NE 4,141,000 5.6 5.4 81,000 25.63 -0.6% -1.5%St. Louis, MO 26,028,000 13.4 10.0 (70,000) 22.01 -0.9% 0.9%MIDWEST TOTAL/AVERAGE 231,060,000 16.5 15.7 728,000 22.09 0.2% -3.5%WESTBakersfield, CA 2,698,000 5.5 4.8 352,000 24.00 0.0% 0.0%Boise, ID 4,620,000 24.4 21.2 49,000 17.10 0.3% -5.0%Denver, CO 33,601,000 13.3 13.1 (13,000) 22.77 3.2% 5.9%Fairfield, CA 1,837,000 24.9 23.6 81,000 26.08 4.0% 2.0%Fresno, CA 3,943,000 18.7 20.2 (70,000) 25.20 0.0% 0.0%Las Vegas, NV 5,079,000 36.8 35.0 352,000 29.36 -1.5% -6.4%Los Angeles—Inland Empire, CA 5,054,000 28.3 27.2 49,000 23.04 0.0% -4.5%Los Angeles, CA 102,115,000 18.3 18.1 (13,000) 33.48 0.0% -3.1%Oakland, CA 3,771,000 20.7 22.7 81,000 26.28 -1.4% 1.4%Orange County, CA 32,835,000 19.7 20.2 (70,000) 22.92 -10.7% -12.0%Phoenix, AZ 30,352,000 24.7 24.3 352,000 22.88 -0.3% -3.7%Portland, OR 10,815,000 15.1 14.5 49,000 23.46 -0.8% 1.0%Reno, NV 799,000 17.9 19.5 (13,000) 16.69 -16.7% -16.2%Sacramento, CA 16,060,000 22.9 23.7 81,000 22.38 -0.7% -5.2%San Diego, CA 23,975,000 13.3 12.4 (70,000) 31.68 0.4% 0.4%San Francisco Peninsula 22,262,000 10.7 11.5 352,000 41.88 10.8% 26.4%San Jose—Silicon Valley 26,235,000 15.6 14.3 49,000 36.96 2.3% 8.5%Seattle/Puget Sound, WA 26,672,000 15.0 14.8 (13,000) 31.47 0.4% 1.3%Walnut Creek/Pleasanton, CA 16,238,000 12.2 12.6 81,000 23.76 5.3% 4.2%WEST TOTAL/AVERAGE 368,961,000 17.6 17.4 1,666,000 29.27 0.7% 0.7%U.S. TOTAL/AVERAGE 1,508,864,000 16.2 15.9 4,764,000 26.14 1.1% 0.7% COLLIERS INTERNATIONAL | P. 13
    • HIGHLIGHTS | Q1 2012 | OFFICE | NORTH AMERICA CANADA | DOWNTOWN OFFICE | ALL INVENTORY EXISTING NEW SUPPLY UNDER VACANCY VACANCY ABSORPTION INVENTORY (SF) Q1 2012 CONSTRUCTION RATE (%) RATE (%) Q1 2012 MARKET MAR. 31, 2012 (SF) SF DEC. 31, 2011 MAR. 31, 2012 (SF) Calgary, AB 38,591,000 950,000 1,791,000 4.5 4.2 859,000 Edmonton, AB 11,284,000 - - 11.1 10.7 27,000 Guelph, ON 383,000 - 12,000 15.4 10.8 17,000 Halifax, NS 4,693,000 5,000 100,000 11.8 13.2 (61,000) Montréal, QC 49,429,000 - 304,000 5.6 5.4 77,000 Ottawa, ON 15,527,000 - 360,000 6.1 6.2 (15,000) Regina, SK 3,434,000 - 280,000 1.7 1.7 (1,000) Saskatoon, SK 2,099,000 - 230,000 2.4 1.8 13,000 Toronto, ON 70,273,000 - 1,573,000 5.1 4.1 349,000 Vancouver, BC 24,384,000 - 1,143,000 3.5 3.8 (97,000) Victoria, BC* 4,938,000 - - 7.7 7.7 - Waterloo Region, ON 3,597,000 - 176,000 12.6 11.3 45,000 CANADA TOTAL/AVERAGE 228,632,000 955,000 5,969,000 5.5 5.2 1,213,000 CANADA | DOWNTOWN OFFICE | CLASS A VACANCY VACANCY AVG ANNUAL QUARTERLY ANNUAL EXISTING RATE (%) RATE (%) ABSORPTION QUOTED RENT CHANGE CHANGE INVENTORY (SF) DEC. 31, MAR. 31, Q1 2012 (CAD PSF) IN RENT IN RENT MARKET MAR. 31, 2012 2011 2012 (SF) MAR. 31, 2012 (%) (%) Calgary, AB 25,757,000 1.5 1.9 858,000 58.00 4.7% 46.8% Edmonton, AB 8,879,000 9.1 8.7 24,000 41.43 3.8% 5.6% Guelph, ON 203,000 0.0 0.0 - 23.10 0.0% 0.0% Halifax, NS 1,934,000 7.0 10.3 (57,000) 32.36 1.7% 0.0% Montréal, QC 23,076,000 5.2 5.1 18,000 42.00 0.0% 13.5% Ottawa, ON 9,536,000 5.8 5.8 - 48.36 0.0% -0.1% Regina, SK 875,000 1.9 1.9 - 38.90 5.1% 4.9% Saskatoon, SK 492,000 0.9 0.9 - 37.00 0.0% 8.8% Toronto, ON 37,315,000 5.2 4.6 340,000 53.66 0.7% -3.6% Vancouver, BC 9,990,000 2.4 2.4 (15,000) 55.00 0.9% 2.8% Victoria, BC* 821,000 7.5 7.5 - 37.78 0.0% N/A Waterloo Region, ON 1,427,000 6.7 4.7 28,000 25.92 0.2% 11.9% CANADA TOTAL/AVERAGE 120,305,000 4.6 4.4 1,196,000 50.13 1.8% 9.1%* Victoria, BC year end is Q3P. 14 | COLLIERS INTERNATIONAL
    • HIGHLIGHTS | Q1 2012 | OFFICE | NORTH AMERICA CANADA | SUBURBAN OFFICE | ALL INVENTORY EXISTING NEW SUPPLY UNDER VACANCY VACANCY ABSORPTION INVENTORY (SF) Q1 2012 CONSTRUCTION RATE (%) RATE (%) Q1 2012 MARKET MAR. 31, 2012 (SF) (SF) DEC. 31, 2011 MAR. 31, 2012 (SF) Calgary, AB 23,800,000 - 1,214,000 9.4 8.4 329,000 Edmonton, AB 8,993,000 85,000 279,000 13.0 11.9 137,000 Guelph, ON 1,383,000 - - 4.4 4.7 (4,000) Halifax, NS 6,668,000 256,000 130,000 10.0 11.9 101,000 Montréal, QC 23,771,000 - 298,000 9.8 8.6 182,000 Ottawa, ON 21,008,000 36,000 122,000 8.1 8.5 (97,000) Regina, SK 678,000 - - 0.1 0.1 - Toronto, ON 68,278,000 104,000 664,000 7.0 6.5 454,000 Vancouver, BC 27,678,000 200,000 1,141,000 10.9 11.2 82,000 Victoria, BC* 3,593,000 - 95,000 9.1 9.1 - Waterloo Region, ON 6,732,000 322,000 207,000 12.9 12.0 329,000 CANADA TOTAL/AVERAGE 192,582,000 1,003,000 4,150,000 8.9 8.5 1,513,000 CANADA | SUBURBAN OFFICE | CLASS A VACANCY VACANCY AVERAGE ANNUAL QUARTERLY EXISTING RATE (%) RATE (%) ABSORPTION QUOTED RENT CHANGE ANNUAL CHANGE INVENTORY (SF) DEC. 31, MAR. 31, Q1 2012 (CAD PSF) IN RENT IN RENT MARKET MAR. 31, 2012 2011 2011 (SF) MAR. 31, 2012 (%) (%) Calgary, AB 11,104,366 7.8 6.6 145,792 42.00 2.4% 13.5% Edmonton, AB 847,668 3.0 4.0 - 25.96 0.6% 1.4% Guelph, ON 2,739,210 8.6 9.7 (8,440) 29.48 4.8% 4.1% Halifax, NS 13,336,192 8.0 7.1 28,702 28.00 0.0% -6.7% Montréal, QC 11,980,116 8.5 8.6 124,861 31.26 0.0% -4.3% Ottawa, ON 677,530 0.1 0.1 (18,493) 28.50 0.0% 0.0% Regina, SK 31,029,906 8.3 7.1 - 29.57 0.7% -2.8% Toronto, ON 13,426,379 11.5 12.2 238,752 36.25 0.7% -5.8% Vancouver, BC 817,488 8.7 8.7 52,594 40.00 0.0% N/A Victoria, BC* 3,174,920 16.3 16.3 - 24.20 -0.7% 5.1% Waterloo Region, ON 89,133,775 8.8 8.4 270,813 31.98 0.8% 0.4% Canada Total 89,133,775 8.8 8.4 834,581 31.98 0.8% .4%* Victoria, BC year end is Q3GlossaryInventory – Includes all existing multi- or single- New Supply – Includes completed speculative and Cap Rate – (Or going-in cap rate) Capitalizationtenant leased and owner-occupied office properties build-to-suit construction. New supply quoted on a rates in this survey are based on multi-tenantgreater than or equal to 10,000 square feet (net net basis after any demolitions or conversions. institutional grade buildings fully leased at marketrentable area). In some larger markets this minimum rents. Cap rates are calculated by dividing netsize threshold may vary up to 50,000 square feet. Annual Quoted Rent – Includes all costs associated operating income (NOI) by purchase price.Does not include medical or government buildings. with occupying a full floor in the mid-rise portion of a Class A building, inclusive of taxes, insurance, Note: SF = square feet Vacancy Rate – Percentage of total inventory maintenance, janitorial and utilities (electricity MSF = million square feetphysically vacant as of the survey date, including surcharges added where applicable). All office rents PSF = per square footdirect vacant and sublease space. in this report are quoted on an annual, gross per CBD = central business district square foot basis. Rent calculations do not includeAbsorption – Net change in physically occupied sublease space.space over a given period of time. COLLIERS INTERNATIONAL | P. 15
    • HIGHLIGHTS | Q1 2012 | OFFICE | NORTH AMERICAUNITED STATES | OFFICE INVESTMENT CBD SALES CBD SUBURBAN SUBURBAN 522 offices in PRICE CAP RATE SALES PRICE CAP RATEMARKETAtlanta, GA (USD PSF) 100.00 (%) 8.20 (USD PSF) 131.00 (%) 9.00 62 countries onBaltimore, MD 112.09 9.50 6 continentsBoston, MA 474.00 5.50 107.00 8.50 United States: 147Charleston, SC 250.00 8.00 135.00 11.00 Canada: 37Chicago, IL 350.00 6.50 225.00 7.25 Latin America: 19Cincinnati, OH 125.00 9.75 137.50 9.50 Asia Pacific: 201Dallas/Fort Worth, TX - - 140.00 7.90 EMEA: 118Denver, CO 238.00 6.50 179.00 8.00 • $1.8 billion in annual revenueDetroit, MI 35.00 47.50 billion square feet under • 1.25Fairfield County, CT - - 95.00 8.00 managementFresno, CA 105.00 9.00 140.00 8.50 • Over 12,300 professionalsFt. Lauderdale-Broward, FL 234.00 141.00Grand Rapids, MI 125.00 9.20 110.00 9.00 COLLIERS INTERNATIONALHartford, CT 112.00 8.90 - 601 Union Street, Suite 4800Houston, TX - - 125.00 8.00 Seattle, WA 98101Indianapolis, IN 160.00 8.10 145.00 7.30 TEL +1 206 695 4200Las Vegas, NV - - 116.00 -Little Rock, AR 88.00 9.50 110.00 9.25 FOR MORE INFORMATIONLong Island, NY - - 210.29 7.58Los Angeles - Inland Empire, CA - - 175.00 8.00 K.C. Conway EMD Market Analytics | USALos Angeles, CA 250.00 6.60 225.00 8.60 TEL +1 678 458 3477Miami-Dade, FL - - 141.00 EMAIL kc.conway@colliers.comMinneapolis, MN - - 127.67 8.00Nashville, TN 94.42 - 106.65 James CookNew Jersey - Central - - 120.86 8.05 Director of Research | USANew Jersey - Northern - - 188.55 7.42 TEL +1 602 633 4061New York, NY - Downtown Manhattan 290.00 5.00 - - EMAIL james.cook@colliers.comNew York, NY - Midtown Manhattan 741.00 4.70 - - Jeff SimonsonNew York, NY - Midtown South Manhattan 413.00 5.00 - - Senior Research Analyst | USAOakland, CA - 8.00 110.49 9.00 TEL +1 760 930 7941Oklahoma City, OK 64.00 - 81.33 10.24 EMAIL jeff.simonson@colliers.comOrange County, CA - - 300.00 7.00Orlando, FL 205.00 9.00 150.00 8.20 Cliff Plank National Director | GIS & MappingPhiladelphia, PA 130.00 8.00 162.00 8.00 TEL +1 602 222 5183Phoenix, AZ 60.00 77.00 8.30 EMAIL cliff.plank@colliers.comPittsburgh, PA 120.00 8.26 110.00 8.50Portland, OR 313.34 77.33 Lauren ChlebowskiSan Diego, CA 79.26 230.27 7.00 Global Brand Designer | Global MarketingSan Francisco Peninsula 250.00 6.50San Francisco, CA 418.00 6.00 Copyright © 2012 Colliers International.San Jose - Silicon Valley 350.00 6.00 The information contained herein has been obtainedSavannah, GA 150.00 9.50 120.00 9.75 from sources deemed reliable. While every reasonable effort has been made to ensure its accuracy, we cannotSeattle/Puget Sound, WA 298.48 7.68 184.45 7.53 guarantee it. No responsibility is assumed for anySt. Louis, MO 95.00 9.25 130.00 8.50 inaccuracies. Readers are encouraged to consult their professional advisors prior to acting on any of theStamford, CT 350.00 8.00 - - material contained in this report.Stockton, CA 142.50 8.60 - -Tampa Bay, FL - - 116.00 9.00Walnut Creek/Pleasanton, CA 120.00 8.00 90.00 8.50Washington DC 650.00 5.75 240.00 7.25West Palm Beach/Palm Beach County, FL 73.00 - 133.00 -Westchester County, NY - - 133.00 8.00 Accelerating success.White Plains, NY 350.00 8.00 - -WWW.COLLIERS.COM