1. Q1 2012 | OFFICE
GREATER COLUMBUS REGION
OFFICE TRENDS REPORT
Quiet Start to 2012
COLUMBUS REGION OVERVIEW
The Columbus region posted slight negative absorption of 18,000 square feet during the first quarter
of 2012 leaving the vacancy rate at 12.1 percent. Westerville made the largest gains with 26,000
square feet were absorbed, while the Arlington/Grandview submarket lost 36,000 square feet. The
largest leases were Cott Systems at 2800 Corporate Exchange Drive for 19,000 square feet and ASK
Chemicals at 495 Metro Place for 16,000 square feet.
MARKET INDICATORS FORECASTS AND REFLECTIONS
• NetJets, Inc.’s completed their 140,000-square- • Constructionhas begun at 10 West Nationwide
Q1 Q2
foot building at Port Columbus International Boulevard, a 200,000-square-foot office
2012 2012*
Airport and have occupied it. They will building, which will house the current
completely vacate 4445 and 4349 Easton Way Nationwide employees working at 5900
VACANCY —
in Easton in the second quarter. Construction Parkwood Place in Dublin when completed.
NET ABSORPTION also continues in New Albany on a 50,000 • Construction has also begun on the parking
square foot, single-story facility, which is the garage which is a part of the Columbia Gas-
CONSTRUCTION — first phase of the 150,000 square feet planned. anchored, 240 West Nationwide Boulevard.
RENTAL RATES The FBI-anchored 425 West Nationwide There will be roughly 35,000 square feet of
Boulevard in the Arena District in the CBD has space not leased by Columbia Gas. The
*Projected trend for next quarter begun construction. The 51,000 square foot Columbia Gas lease at 200 Civic Center Drive
building will have 6,000 square feet of does not run out until 2014.
speculative space available when completed.
ASKING RATES AND
RENTAL RATES ABSORPTION, COMPLETIONS, AND VACANCY RATES CONSTRUCTION
400,000 20.0% Asking rates have
$21.00
18.0% remained stable or
$20.00 300,000
increased over the past
$19.00 16.0%
$18.00 200,000 few quarters. There are
$17.00 14.0% only 48 spaces in
$16.00 100,000
12.0%
Columbus larger than
$15.00 30,000 square feet; 7 in
$14.00 0 10.0%
3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
the CBD and 41 in the
3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q
08 08 09 09 09 09 10 10 10 10 11 11 11 11
08 08 09 09 09 09 10 10 10 10 11 11 11 11 12 8.0% suburban markets. The
(100,000)
Class A Rental Rates Class B market will likely see
6.0%
(200,000) continued increases in
4.0% asking rental rates, but
(300,000)
2.0% not drastically.
(400,000) 0.0%
Completions Absorption Vacancy Rate
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2. RESEARCH & FORECAST REPORT | Q1 2012 | OFFICE | GREATER COLUMBUS REGION
EMPLOYMENT DATA 1.9 percent greater than the same months in
Delaware
2011. Consistent employment growth leads to
County
The preliminary unemployment rate for Columbus
leasing so these are good signs.
in February dipped to 7.2 percent from 7.3
Union County
Powell Polaris
Westerville
percent in January. The unemployment rate
MARKET ACTIVITY
Licking
County
through November and December 2011 had
Worthington New
Dublin Albany
Bethel
North
Central
dropped to 6.6 and 6.4 respectively, but has Market interest increased during the fourth
quarter. Colliers International attempts to discern
Hilliard Easton Gahanna/
Arlington/
Grandview
CBD
Airport
risen due layoffs from what was previously
Madison East
holiday hiring. Every sector except for demand for office space by tracking tenants in
County
Southwest
government and manufacturing was higher the market. The average number of tenants in
Southeast
Fairfield
through January and February 2012 than year- the market has been lower in first quarter 2012
County
ago employment levels. The sectors, which are than in fourth quarter 2011, 83 compared to 78.
Pickaway County
significant for office leasing, were either steady However, there are many tenants seeking large
or increased in the preliminary February spaces. 21 tenants are looking for more than
The Columbus office market consists numbers. The information sector remained flat 50,000 square feet, and there are 45 tenants
of 15 suburban submarkets plus the from December through February at 16,700 looking for 10,000 to 50,000 square feet of
Central Business District submarket. The workers, which is .6 percent greater than space.
Columbus region features a total of 62.6
million square feet, 43.5 million of which
January and February 2011.
Market Activity Volume is the sum of the absolute
is suburban.
Employment for financial activities hung between value of each absorption change in the market,
71,400 to 71,600 workers from December to and it tells us how much space was in transition
February. This is 2.3 percent and 2.7 percent in the quarter. The total amount of space in
higher than finance employment levels in transition was 450,000 square feet. This is
January and February levels in 2011. significantly lower than the average of the past
six years in which the average was 1.6 million
Professional and business services fluctuated square feet in transition. Very little occurred in
from 150,000 in December 2011 to 147,500 in the market this quarter as shown by this
January to 149.2 in February. Employment levels comparison, but we expect the pace of the
in January and February this year were 1.2 and market to pick up as there are still several large
MARKET ACTIVITY
SALES ACTIVITY
PROPERTY ADDRESS SALES DATE SALE PRICE SIZE SF BUYER SELLER PRICE / SF TYPE SUBMARKET
1103 Schrock Road Mar-12 $3,775,000 100,108 Schrock Road Holdings LLC Anheuser-Busch, Inc $37.29 B Worthington
3400 Morse Xing Jan-12 $6,100,000 49,250 Vsp Ceres Inc Farbman Group $129.79 B Easton
8720 Orion Place 3/1/2012 $5,150,000 52,005 Pat Kelly Miller $99.03 B Polaris
807 Kinnear Road Feb-12 $1,700,000 29,422 Simon Kenton Nittany Lions LLC $57.78 B Arlington/Grandview
LEASE ACTIVITY
PROPERTY ADDRESS LEASE SF LANDLORD TENANT ASKING PRICE (NNN) TYPE SUBMARKET
2800 Corporate Exchange Drive 19,448 Corporate Exchange Buildings Cott Systems $8.00 B Westerville
Iv & V Lp
530 Spring Street 16,949 Lion-Dov - $11.00 B CBD
495 Metro Place 16,415 TIAA-CREF ASK Chemicals $10.00 A Dublin
2 Easton Oval 13,007 DP Two Easton Oval LLC Insight $12.95 A Easton
600 Lakeview Plaza Boulevard 11,494 Laketech Properties L C Absolute Care $3.00 C Worthington
495 Metro Place 10,432 TIAA-CREF BCD Travel $10.00 A Dublin
P. 2 | COLLIERS INTERNATIONAL

3. RESEARCH & FORECAST REPORT | Q1 2012 | OFFICE | GREATER COLUMBUS REGION
UPDATE Market Comparisons
OFFICE MARKET
Net Absorption Construction Asking Rental Rates
SUBMARKET Total SF Vacant SF Vacancy % Current Quarter Year-to-date Current Completions Class A ($) Class B ($)
CBD 19,091,001 2,107,621 11.0 65,897 161,101 251,000 - $19.82 $16.87
ARLINGTON/GRANDVIEW 4,752,155 696,473 14.7 (36,714) (36,714) - $21.22 $15.66
DUBLIN 9,501,878 1,279,696 13.5 (25,577) (25,577) - $17.32 $14.95
EAST 3,691,158 523,007 14.2 24,811 24,811 140,000 $17.03 $14.32
EASTON 2,685,332 167,089 6.2 (455) (455) - $17.90 $22.50
GAHANNA/AIRPORT 1,262,031 131,038 10.4 18,276 18,276 - $17.63 $16.34
HILLIARD 2,480,456 473,524 19.1 (10,949) (10,949) - $19.95 $15.03
NEW ALBANY 1,935,789 182,628 9.4 - - 50,000 - $18.12 $15.00
NORTH CENTRAL 1,255,636 72,016 5.7 (2,252) (2,252) - $23.00 $14.16
POLARIS 4,419,869 255,686 5.8 (24,160) (24,160) - $18.78 $15.69
POWELL 273,719 60,537 22.1 (7,880) (7,880) - - $14.76
SOUTHEAST 402,548 61,040 15.2 (815) (815) - - -
SOUTHWEST 236,158 44,140 18.7 (6,079) (6,079) - - $7.50
WESTERVILLE 4,489,479 624,548 13.9 26,579 26,579 - $16.77 $15.01
WORTHINGTON 6,296,402 977,928 15.5 21,011 21,011 - $16.26 $14.42
SUBURBAN TOTAL 43,682,610 5,549,350 12.7 (24,204) (24,204) 50,000 - $17.94 $14.86
TOTAL 63,040,314 7,651,317 12.1 (18,550) (18,550) 301,000 140,000 $18.79 $15.57
Net Absorption Construction Asking Rental Rates
PROPERTY TYPE Total SF Vacant SF Vacancy % Current Quarter Year-to-date Current Completions By Product Type
CLASS A 26,082,781 2,826,363 10.8 (7,068) (7,068) 301,000 - $18.79
CLASS B 23,102,511 3,188,319 13.8 (30,639) (30,639) - - $15.57
CLASS C 13,855,022 1,636,635 11.8 19,157 19,157 - - $13.14
TOTALS 63,040,314 7,651,317 12.1 (18,550) (18,550) 301,000 - $16.53
QUARTERLY COMPARISON AND TOTALS
Net Absorption Construction Asking Rental Rates
QUARTER, YEAR Total SF Vacant SF Vacancy % Current Quarter Year-to-date Current Completions By Product Type
Q4, 2011 63,040,314 7,632,767 12.1 252,351 732,831 190,000 - $18.61 $15.47
Q3, 2011 63,040,314 7,885,118 12.5 284,581 480,480 190,000 - $18.58 $15.41
Q2, 2011 62,900,314 8,169,699 13.0 202,803 195,899 190,000 - $18.25 $15.25
Q1, 2011 63,040,314 8,372,502 13.3 (6,904) (6,904) 190,000 65,000 $18.10 $15.46
COLUMBUS REGION MARKET
Colliers International has changed
the critieria for inclusion in the office
dataset. All 10,000 square foot, class A,
B and C buildings, not owned and fully
leased by government are included in
the dataset.
COLLIERS INTERNATIONAL | P. 3

4. RESEARCH & FORECAST REPORT | Q1 2012 | OFFICE | GREATER COLUMBUS REGION
CENTRAL BUSINESS DISTRICT In Polaris, Malcom Pirnie and Arcadis moved out
of 1900 Polaris Parkway leaving the building an
The CBD showed positive absorption of 65,000
square feet. Larger leases occurred at 21 State
additional 20,400 square feet vacant. 522 offices in
Street where 21,000 square feet was absorbed.
In Westerville, Cott Systems leased 19,400
62 countries on
At 100 East Broad Street Soloman Global and Z
Careers combined for 17,800 square feet of
square feet at 2800 Corporate Exchange Drive. 6 continents
In Worthington, Erie Insurance leased 9,900
absorption. One significant vacancy was that of
square feet at 445 Hutchinson Avenue and United States: 125
OHA at 155 Broad Street for 37,600 square feet. Canada: 38
Absolute Care leased 11,400 square feet at 600
Latin America: 18
Lakeview Plaza Boulevard.
Nationwide Insurance began construction on Asia Pacific: 214
their 200,000 square foot facility, where they EMEA: 117
will house the employees transferring into SOUTH MARKET
• $1.8 billion in annual revenue
downtown from 5900 Parkwood Place in Dublin. The south submarkets are the Southwest and • 1.25 billion square feet under
However, this transition is not expected until the Southeast. management
2013. Nationwide Realty also began construction • Over 12,300 professionals
on a new 51,300-square-foot, $10 million Very little change occurred in these submarkets
project. Located at 425 W. Nationwide Blvd, the as these are among the smallest, least populated GREATER COLUMBUS REGION:
site will be anchored by FBI. submarkets.
Richard B. Schuen SIOR CCIM
CEO | Principal | Columbus
The future site of Columbia Gas at 240 West EAST MARKET 8800 Lyra Drive
Nationwide Boulevard is seeing construction Suite # 150
The east submarkets are the East side, Easton, Columbus, Ohio 43240
activity on its parking garage. No construction
Gahanna/Airport and New Albany. TEL +1 614 410 5612
has begun for the 280,000 square foot office
property though.
In the East, JCPenney leased space, adding to
15,200 square feet of absorption at 3980 East Leslie Hobbs
WEST MARKET Marketing & Research Manager
5th Avenue. IAP leased 7,300 square feet at
8800 Lyra Drive
The west submarkets are Arlington/Grandview 2760 Airport Drive, and Aerotek Leased 6,600 Suite # 150
and Hilliard. square feet of space at 630 Morrison Road. Columbus, Ohio 43240
TEL +1 614 410 5640
Both submarkets saw negative absorption. In Easton, Insight leased 13,000 square feet of 2
Significant vacancies occurred in Arlington/ Easton Oval. Next quarter, there will be
Grandview from Willis Insurance vacating significant vacancy created by NetJets leaving Jonathan Badgley
44,500 square feet of 2245 North Bank Drive, Research Analyst
their former location as they will fully occupy
175 South Third Street
as well as Excel vacating 7,500 square feet of their new facility on the ground of the Columbus Suite # 285
1650 Watermark Drive. Airport Columbus, Ohio 43201
TEL +1 614 437 4495
NORTH COLUMBUS MARKET In New Albany, Daimler will soon begin the next
The north submarkets are Dublin, Powell, Polaris, phase of Water’s Edge as construction wraps on
North Central, Worthington and Westerville. phase one.
In Dublin, ASK Chemicals took 16,000 square LANDLORD/TENANT
feet of the 35,000 square feet of new positive The types of tenants most seen in the market
This document/email has been prepared by Colliers
International for advertising purposes. Colliers
absorption at 495 Metro Place. At 4150 Tuller recently have been mortgage, attorneys, and International statistics and data are audited annually and
Road, Sports Ohio Plus leased 10,500 square smaller tenants of 2,000 to 6,000 square feet.
may result in revisions to previously reported quarterly
and final year-end figures. Sources include Columbus
feet of the 19,600 square feet of positive Larger tenants have been slow to move as they Dispatch, Business First, Xceligent, and the Wall Street
absorption. Significant vacancy was incurred at have too many options and too large of
Journal.
4675 Lakehurst Court as Duke opened up expectations, slowing down their ability to make
30,300 square feet to sublease. Also occurring decisions.
in Dublin were the vacanies of Progressive at
5500 Frantz Road for 11,400, Mitel at 260 The largest issue facing landlords is creating a
Cramer Creek Court for 10,800, IHC solutions at steady cashflow, especially for landlords who
4700 Lakehurst Court for 10,600, and New want to renegotiate their debt.
Horizon at 6175 Shamrock Court.
Accelerating success.
www.colliers.com/columbus