North American Office Highlights 1Q 2011

Q1 2011 | OFFICE

NORTH AMERICA

HIGHLIGHTS

U.S. Office Market Begins the Year
on a Soft Note
ROSS J. MOORE Chief Economist | USA
MARKET INDICATORS
Relative to prior period The U.S. office market began the year on a more muted note with only a modest increase in occupied
space and little change in vacancy. Rents continued to languish, but for the first time in three years
Q1 Q2
2011 2011* both downtown and suburban rents managed to eke out small gains. With the economy not yet firing
on all cylinders and total employment showing only lackluster growth, the outlook for the office space
VACANCY market is far from certain. Higher energy costs are starting to impact business decisions and, as a
result, demand for office space. By comparison, Canadian markets enjoyed a reasonably good quarter
NET ABSORPTION
on the back of robust economic growth and a healthy labor market. Both U.S. and Canadian econo-
CONSTRUCTION mies are expected to make gains in 2011, but the sudden surge in energy prices is a fairly stiff
headwind that is likely to put a damper on corporate expansion and add to inflation concerns.
RENTAL RATE
First-quarter data confirms our view that the U.S. office market recovery will be uneven in nature and
*Projected
fairly volatile. Manhattan, Washington, San Francisco and Boston remain the clear leaders in terms of
fundamentals; yet Dallas, Denver, Houston, Northern New Jersey, Philadelphia, Raleigh, San Diego,
San Jose, Seattle and West Los Angeles all showing encouraging signs. Also somewhat positive is the
thirteen-month-long gain in private-sector employment. Furthermore, office-using employment was
U.S. OFFICE MARKET reasonably strong during the January-March period, with professional and businesses employment in
SUMMARY STATISTICS, Q1 2011 particular up 3.2% year-over-year (March). Widespread increases in rents are unlikely to occur in 2011

Vacancy Rate: 15.46%
continued on page 6
Change from Q4 2010: –0.01
U.S. OFFICE MARKET Q1 2009 – Q1 2011
Absorption:
8.1 Million Square Feet 35 15.8 U.S. office market
15.6 took a breather in Q1,
New Construction: 25
but all signs suggest
Million Square Feet

15.4
7.5 Million Square Feet 15 15.2 the recovery begun
Vacancy (%)

5 15.0 last year will only
Under Construction: 14.8 accelerate in the
25.7 Million Square Feet -5 14.6 coming quarters.
-15 14.4
Asking Rents Per Square Foot 14.2
(Change from Q4 2010): -25
14.0
Downtown Class A: $39.55 (0.7%) -35 13.8
Suburban Class A: $26.20 (0.6%) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2009 2010 2011
Absorption Completions Vacancy

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HIGHLIGHTS | Q1 2011 | OFFICE | NORTH AMERICA

UNITED STATES | DOWNTOWN OFFICE | ALL INVENTORY

EXISTING NEW SUPPLY UNDER VACANCY VACANCY ABSORPTION
INVENTORY (SF) Q1 2011 CONSTRUCTION RATE (%) RATE (%) Q1 2011
MARKET MAR. 31, 2011 (SF) (SF) DEC. 31, 2010 MAR. 31, 2011 (SF)

NORTHEAST

Baltimore, MD 21,677,000 0 0 16.6 15.6 143,000

Boston, MA 60,163,000 0 760,000 16.6 16.6 (35,000)

Hartford, CT 9,626,000 0 180,000 22.9 22.8 9,000

New York, NY – Downtown Manhattan 109,357,000 0 4,707,000 14.2 14.1 165,000

New York, NY – Midtown Manhattan 228,627,000 0 1,876,000 12.3 12.3 (100,000)

New York, NY – Midtown S. Manhattan 167,392,000 0 0 9.6 9.4 197,000

Philadelphia, PA 42,672,000 0 0 12.4 12.1 115,000

Stamford, CT 18,854,000 260,000 0 18.3 19.0 96,000

Washington, DC 141,797,000 573,000 799,000 11.1 11.1 659,000

White Plains, NY 7,845,000 0 0 13.7 13.2 38,000

NORTHEAST TOTAL/AVERAGE 808,009,000 833,000 8,323,000 12.49 12.42 1,288,000

SOUTH

Atlanta, GA 48,560,000 0 0 17.1 18.1 (449,000)

Charleston, SC 1,995,000 0 0 10.0 10.2 (4,000)

Charlotte, NC 22,510,000 0 0 13.0 11.1 399,000

Columbia, SC 4,986,000 0 0 23.5 22.0 46,000

Dallas/Fort Worth, TX 45,961,000 0 0 22.6 22.5 56,000

Ft. Lauderdale/Broward Co., FL 8,274,000 0 0 15.7 16.1 (32,000)

Greenville, SC 3,125,000 0 0 18.9 18.0 21,000

Houston, TX 37,666,000 972,000 845,000 15.4 16.0 (13,000)

Jacksonville, FL 16,211,000 0 0 13.8 13.6 13,000

Little Rock, AR 6,577,000 0 0 14.5 14.5 0

Louisville, KY 16,076,000 0 60,000 10.3 10.4 (20,000)

Memphis, TN 8,338,000 0 0 16.5 16.4 7,000

Miami-Dade, FL 17,427,000 0 615,000 21.3 21.0 52,000

Nashville, TN 7,857,000 0 44,000 23.3 22.2 61,000

Orlando, FL 12,522,000 105,000 0 13.6 13.1 153,000

Raleigh/Durham/Chapel Hill, NC 11,632,000 0 324,000 6.2 6.4 22,000

Tampa, FL 8,565,000 0 0 15.7 14.9 72,000

West Palm Beach/Palm Beach Co., FL 10,053,000 0 0 19.4 19.6 (20,000)

SOUTH TOTAL/AVERAGE 288,334,000 1,077,000 1,888,000 16.72 16.67 363,000

P. 2 | COLLIERS INTERNATIONAL


UNITED STATES | DOWNTOWN OFFICE | ALL INVENTORY


MIDWEST

Chicago, IL 158,223,000 0 0 14.9 14.9 73,000

Cincinnati, OH 19,342,000 805,000 0 11.4 19.2 (109,000)

Cleveland, OH 34,785,000 0 475,000 18.7 19.3 (267,000)

Columbus, OH 19,091,000 0 0 11.9 11.6 58,000

Detroit, MI 30,910,000 0 0 16.8 17.1 37,000

Grand Rapids, MI 5,498,000 0 0 24.3 24.2 7,000

Indianapolis, IN 24,046,000 0 0 10.3 10.8 (112,000)

Kansas City, MO-KS 33,224,000 0 0 14.2 13.4 256,000

St. Louis, MO 30,010,000 0 0 15.6 15.9 (91,000)

MIDWEST TOTAL/AVERAGE 355,129,000 805,000 475,000 14.93 15.38 (148,000)

WEST

Bakersfield, CA 2,952,000 0 0 10.0 9.8 3,000

Boise, ID 3,473,000 0 0 11.9 11.7 8,000

Denver, CO 31,037,000 30,000 270,000 14.0 13.9 44,000

Fresno, CA 3,263,000 0 0 11.4 12.1 (23,000)

Honolulu, HI 8,074,000 0 0 12.3 12.1 17,000

Las Vegas, NV 3,847,000 0 300,000 12.9 12.9 4,000

Los Angeles, CA 33,368,000 0 0 17.3 17.4 (62,000)

Oakland, CA 16,892,000 0 0 12.2 11.2 155,000

Phoenix, AZ 19,473,000 0 0 21.1 22.1 (214,028)

Pleasanton/Walnut Creek, CA 12,110,000 0 0 16.9 17.3 (42,000)

Portland, OR 20,173,000 0 0 9.1 9.2 (11,000)

Reno, NV 1,327,000 0 0 26.3 28.8 (34,000)

Sacramento, CA 18,286,000 0 155,000 9.9 10.2 57,000

San Diego County, CA 10,225,000 0 0 19.3 20.8 (115,000)

San Francisco, CA 85,635,000 0 288,000 14.7 14.2 487,000

San Jose/Silicon Valley, CA 7,593,000 0 0 22.0 25.3 (135,000)

Seattle/Puget Sound, WA 58,776,000 762,000 931,000 15.0 15.2 518,000

Stockton/San Joaquin County, CA 8,345,000 0 0 18.5 19.5 (83,000)

WEST TOTAL/AVERAGE 344,849,000 792,000 1,944,000 14.92 15.03 620,000

U.S. TOTAL/AVERAGE 1,796,321,000 3,508,000 12,629,000 14.12 14.19 2,123,000

COLLIERS INTERNATIONAL | P. 3


UNITED STATES | DOWNTOWN OFFICE | CLASS A

AVERAGE ANNUAL QUARTERLY ANNUAL
EXISTING VACANCY VACANCY ABSORPTION QUOTED RENT CHANGE IN CHANGE IN
INVENTORY (SF) RATE (%) RATE (%) Q1 2011 (USD PDF) RENT RENT
MARKET MAR. 31, 2011 DEC. 31, 2010 MAR. 31, 2011 (SF) MAR. 31, 2011 (%) (%)

NORTHEAST

Baltimore, MD 9,811,000 18.0 16.4 157,000 25.20 9.7 3.2

Boston, MA 41,168,000 15.7 16.0 (127,000) 45.90 -0.3 -1.9

Hartford, CT 6,369,000 22.7 22.5 4,000 23.00 -0.1 -1.6

New York, NY – Downtown Manhattan 75,928,000 15.7 15.2 407,000 38.50 -3.0 -3.2

New York, NY – Midtown Manhattan 193,066,000 12.9 13.1 (330,000) 63.40 -2.6 -0.7

New York, NY – Midtown S. Manhattan 33,457,000 11.4 9.6 603,000 47.30 9.5 14.8

Philadelphia, PA 32,830,000 12.2 11.8 106,000 26.10 0.0 0.2

Stamford, CT 13,177,000 19.7 20.4 116,000 38.60 1.7 4.2

Washington, DC 83,401,000 13.9 13.7 776,000 52.90 -1.2 3.7

White Plains, NY 4,958,000 15.4 15.1 (6,000) 30.00 5.4 2.7

NORTHEAST TOTAL/AVERAGE 494,165,000 14.02 13.84 1,708,000 50.48

SOUTH

Atlanta, GA 29,639,000 20.4 19.4 285,000 22.70 6.2 5.7

Charleston, SC 1,102,000 9.3 7.6 19,000 28.80 0.1 20.4

Charlotte, NC 16,587,000 14.7 12.5 402,000 24.00 -3.9 -12.2

Columbia, SC 2,194,000 14.1 12.7 2,000 19.50 -1.6 1.4

Dallas/Fort Worth, TX 28,005,000 19.4 19.4 (4,000) 25.30 0.2 -0.4

Ft. Lauderdale/Broward Co., FL 4,464,000 22.7 23.1 (20,000) 32.10 1.1 -1.8

Greenville, SC 1,844,000 8.8 7.9 7,000 20.50 5.3 1.3

Houston, TX 26,814,000 11.1 12.6 (34,000) 34.20 -1.2 -3.9

Jacksonville, FL 6,654,000 15.2 15.0 12,000 18.90 0.1 -6.5

Little Rock, AR 2,636,000 11.5 11.4 3,000 16.60 0.6 0.6

Louisville, KY 3,880,000 10.3 9.0 52,000 20.40 -8.5 -11.0

Memphis, TN 1,938,000 18.1 17.2 18,000 17.40 -1.5 2.0

Miami-Dade, FL 8,770,000 24.5 23.3 105,000 41.40 -0.2 -2.0

Nashville, TN 3,845,000 24.8 22.9 52,000 22.70 -4.3 0.8

Orlando, FL 5,674,000 17.5 16.4 147,000 23.00 -4.1 -6.4

Raleigh/Durham/Chapel Hill, NC 4,733,000 7.8 8.1 (17,000) 24.10 3.8 1.3

Tampa, FL 4,809,000 17.2 15.4 90,000 22.50 -1.7 -1.1

West Palm Beach/Palm Beach Co., FL 3,364,000 23.9 24.3 (14,000) 36.90 0.8 -3.9

SOUTH TOTAL/AVERAGE 156,952,000 17.01 16.54 1,105,000 26.52



UNITED STATES | DOWNTOWN OFFICE | CLASS A


MIDWEST

Chicago, IL 57,355,000 16.1 16.1 0 32.50 1.6 1.6

Cincinnati, OH 8,867,000 14.2 23.4 (38,000) 21.30 -2.5 -2.0

Cleveland, OH 9,728,000 13.1 13.7 (65,000) 21.10 3.4 2.2

Columbus, OH 7,840,000 13.1 13.0 5,000 19.30 -0.3 -6.6

Detroit, MI 11,613,000 17.4 17.1 1,000 23.00 0.0 1.1

Grand Rapids, MI 1,567,000 18.6 18.3 5,000 20.90 -4.7 -2.3

Indianapolis, IN 10,109,000 12.5 13.1 (59,000) 19.20 0.0 –

Kansas City, MO-KS 10,403,000 19.7 17.6 219,000 19.60 14.5 -5.1

St. Louis, MO 12,841,000 11.5 11.4 15,000 18.60 5.2 -4.4

MIDWEST TOTAL/AVERAGE 130,323,000 15.26 15.77 83,000 25.67

WEST

Bakersfield, CA 670,000 6.3 6.3 0 17.40 0.0 0.0

Boise, ID 2,038,000 5.1 4.7 9,000 18.00 0.0 0.0

Denver, CO 19,195,000 13.1 12.6 92,000 27.00 0.1 0.1

Fresno, CA 1,039,000 9.6 11.8 (23,000) 24.60 0.0 0.0

Honolulu, HI 4,709,000 12.2 12.6 (18,000) 35.10 -0.7 -1.1

Las Vegas, NV 794,000 8.9 9.1 0 34.80 0.7 2.6

Los Angeles, CA 17,734,000 14.7 14.2 95,000 38.50 -1.2 -0.9

Oakland, CA 10,198,000 10.0 9.9 2,000 31.20 1.2 2.0

Phoenix, AZ 9,470,000 21.9 23.1 (118,000) 27.20 -3.6 1.3

Pleasanton/Walnut Creek, CA 7,787,000 18.8 19.0 (13,000) 27.60 5.0 8.5

Portland, OR 9,954,000 7.9 6.9 105,000 25.40 3.0 4.1

Reno, NV 548,000 19.7 22.3 (14,000) 23.40 0.0 -2.5

Sacramento, CA 8,912,000 9.4 9.5 (8,000) 32.20 -1.8 -5.7

San Diego County, CA 7,254,000 16.3 18.3 (85,000) 28.70 0.0 -5.5

San Francisco, CA 52,333,000 15.2 14.5 363,000 36.00 0.0 9.9

San Jose/Silicon Valley, CA 3,365,000 27.9 31.2 (22,000) 32.40 -5.6 -11.2

Seattle/Puget Sound, WA 32,289,000 20.9 18.9 468,000 29.10 -4.5 9.6

Stockton/San Joaquin County, CA 2,774,000 27.6 28.0 (11,000) 21.60 2.3 0.0

WEST TOTAL/AVERAGE 191,065,000 15.60 15.19 823,000 31.47

U.S. TOTAL/AVERAGE 972,505,000 14.98 14.80 3,720,000 39.60 weighted 0.68 3.71

28.10 equal -0.20 -0.30



U.S. Office Market Begins the Year on a Soft Note EMPLOYMENT, PROFESSIONAL & BUSINESS SERVICES
Continued from page 1 90

and any boost is likely to be foreshadowed by a reduction in inducements 80

Month to Month Change, thousands
which have not yet materialized beyond a handful of markets. 70

60
U.S. office vacancy rate holds steady. The U.S. national office vacancy
rate barely budged during the first quarter, shifting just one basis point 50
higher (100 basis points equals one percent). Office vacancies finished the 40
quarter at 15.46 percent but are still on track to finish the year below 15.00
30
percent. During the first quarter, downtown vacancies increased 7 basis
points to register 14.19 percent. Suburban vacancy rates nudged lower, 20
falling 3 basis points to 16.07 percent. Over the past 12 months, the U.S. 10
national office vacancy rate has fallen 21 basis points. The flight to quality
0
was particularly evident this quarter reflected by Class A vacancies, which
shrunk 21 basis points. Canadian office vacancy rates were mixed for the -10
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
quarter, with central business district (CBD) vacancies falling 26 basis
2010 2011
points to 6.75 percent, and suburban vacancies increasing 16 basis points
to 8.76 percent. Source: U.S. Bureau of Labor Statistics

Office absorption positive for fourth consecutive quarter. The U.S. office ABSORPTION (SF) | SELECT DOWNTOWN MARKETS | Q1 2011
market registered a fourth straight quarter of rising occupancies. First-
-100,000 100,000 300,000 500,000 700,000
quarter absorption came in at 8.1 million square feet (MSF)—substantially
below the fourth quarter of 2010, when occupied space increased by 14.8 Washington, DC
MSF, but a considerable improvement from a year ago, when occupied
space contracted by 5.1 MSF. Repeating a trend witnessed last quarter, Seattle
Class A buildings continued to attract “move-up” tenants with Class A
absorption totaling 10.4 MSF, compared to Class B and C buildings which San Francisco
saw a mild contraction in occupied space. Canadian markets also recorded
Midtown S. Manhattan
an increase in occupied space during the first quarter, with absorption
totaling 2.6 MSF. This was just marginally below the 2.3 MSF recorded in Downtown Manhattan
the fourth quarter.
Philadelphia
Rents continue to form a bottom. First-quarter data shows CBD rents
increased by 0.7 percent to average $39.55 per square foot. This came on Boston
top of 0.9 percent increase in the fourth quarter. Suburban rents increased
Midtown Manhattan
by 0.6 percent to register $26.20 per square foot. Although small, this was
the first increase in suburban rents since Q1 2008. Taking out the effects
of some of the larger, higher-priced markets, both downtown and subur-
ban rents held steady during the quarter. Canadian downtown office rents ABSORPTION (SF) | SELECT SUBURBAN MARKETS | Q1 2011
moved higher during Q1 with CBD quoted rents increasing 4.2 percent 0 400,000 800,000 1,200,000 1,600,000
while suburban rents increased 3.1 percent.
San Francisco Peninsula
Office construction takes a surprising jump. First-quarter office comple-
Northern New Jersey
tions totaled 7.5 MSF, nearly doubling the fourth quarter, when construc-
tion totaled 3.8 MSF. By historic standards, however, first-quarter comple- Dallas
tions were extremely low—a trend that is expected to continue. It should
also be noted that four markets account for more than 50 percent of Q1 Raleigh/Durham
new supply: downtown Cincinnati, downtown Houston, downtown Seattle,
and Menlo Park on the San Francisco Peninsula. Going forward, office San Jose/Silicon Valley
development will remain extremely subdued, reflected in construction
Houston
activity which registered just 25.7 MSF at the end of the quarter. Last
quarter, construction underway registered 22.3 MSF. The Canadian office San Diego
market had very little new construction during the first quarter, adding just
336,000 square feet; however, across the country 6.6 MSF was under Denver
construction at the end of the quarter.



UNITED STATES | SUBURBAN OFFICE | ALL INVENTORY


NORTHEAST

Baltimore, MD 94,701,000 339,000 1,342,000 13.4 13.7 (152,000)

Boston, MA 106,500,000 0 59,000 19.1 19.2 60,000

Fairfield County, CT 60,091,000 278,000 0 13.1 13.3 138,000

Hartford, CT 12,374,000 0 0 14.8 14.5 82,000

Long Island – Nassau, NY 41,762,000 40,000 55,000 10.7 10.7 54,000

Long Island – Suffolk, NY 29,607,000 0 94,000 11.6 11.1 159,000

New Jersey – Central 104,455,000 26,000 358,000 15.2 15.4 (251,000)

New Jersey – Northern 138,911,000 0 406,000 14.2 13.3 1,281,000

Philadelphia, PA 109,239,000 0 285,000 16.2 15.7 563,000

Washington, DC 310,547,000 70,000 3,262,000 13.7 14.0 (307,000)

Westchester County, NY 38,224,000 0 0 10.8 11.0 (35,000)

NORTHEAST TOTAL/AVERAGE 1,046,412,000 753,000 5,860,000 14.39 14.38 1,592,000
SOUTH

Atlanta, GA 165,736,000 0 314,000 18.6 18.4 296,000

Charleston, SC 9,394,000 0 0 19.1 17.4 163,000

Charlotte, NC 71,606,000 5,000 325,000 14.0 13.8 249,000

Columbia, SC 4,782,000 0 0 19.7 20.3 3,000

Dallas/Fort Worth, TX 255,335,000 50,000 488,000 17.1 16.9 766,000

Ft. Lauderdale/Broward Co., FL 44,225,000 0 0 14.7 14.2 195,000

Greenville, SC 4,291,000 0 14,000 23.3 23.3 110,000

Houston, TX 158,632,000 0 406,000 16.1 15.8 391,000

Jacksonville, FL 43,346,000 0 15,000 15.4 14.8 301,000

Little Rock, AR 7,364,000 0 23,000 11.0 10.7 19,000

Louisville, KY 35,350,000 54,000 20,000 13.1 11.8 521,000

Memphis, TN 28,542,000 0 12,000 13.0 13.0 61,000

Miami-Dade, FL 64,224,000 90,000 485,000 14.6 14.8 (22,000)

Nashville, TN 23,472,000 0 457,000 10.5 10.8 18,000

Orlando, FL 54,867,000 0 213,000 16.6 16.3 151,000

Raleigh/Durham/Chapel Hill, NC 75,286,000 188,000 126,000 12.8 12.6 641,000

Tampa, FL 71,526,000 0 0 15.8 16.0 (166,000)

West Palm Beach/Palm Beach Co., FL 29,133,000 73,000 32,000 20.7 20.1 255,000

SOUTH TOTAL/AVERAGE 1,147,111,000 461,000 2,930,000 16.06 15.81 3,953,000



UNITED STATES | SUBURBAN OFFICE | ALL INVENTORY


MIDWEST

Chicago, IL 152,351,000 0 416,000 18.0 18.2 (196,000)

Cincinnati, OH 32,624,000 16,000 195,000 19.0 21.2 70,000

Cleveland, OH 92,075,000 14,000 872,000 10.2 10.4 (141,000)

Columbus, OH 43,748,000 65,000 140,000 14.2 14.0 (73,000)

Detroit, MI 99,591,000 27,000 4,000 21.1 21.8 (117,000)

Grand Rapids, MI 12,750,000 0 0 25.5 25.5 12,000

Indianapolis, IN 57,189,000 0 0 12.2 12.1 90,000

Kansas City, MO-KS 58,416,000 66,000 0 14.0 13.8 190,000

St. Louis, MO 54,475,000 0 0 11.2 11.8 (337,000)

MIDWEST TOTAL/AVERAGE 603,220,000 188,000 1,627,000 15.70 16.02 (501,000)
WEST

Bakersfield, CA 5,975,000 7,000 0 9.8 10.2 (16,000)

Boise, ID 10,819,000 0 16,000 22.2 22.0 20,000

Denver, CO 100,907,000 286,000 68,000 15.8 15.6 231,000

Fairfield, CA 4,221,000 0 0 25.1 27.5 (103,000)

Fresno, CA 17,829,000 30,000 0 13.6 13.4 29,000

Honolulu, HI 7,593,000 0 0 11.3 12.1 (64,000)

Las Vegas, NV 35,009,000 255,000 32,000 26.3 27.0 (81,000)

Los Angeles – Inland Empire, CA 21,667,000 0 0 24.8 25.7 (172,000)

Los Angeles, CA 171,405,000 191,000 921,000 17.6 18.0 (516,000)

Oakland, CA 15,877,000 0 0 17.4 19.4 (319,000)

Orange County, CA 79,486,000 0 0 22.0 21.7 290,000

Phoenix, AZ 107,537,000 0 649,000 22.5 22.6 (203,000)

Pleasanton/Walnut Creek, CA 32,975,000 0 0 14.3 16.1 (580,000)

Portland, OR 44,643,000 63,000 0 13.8 12.9 460,000

Reno, NV 5,548,000 0 0 18.9 19.9 (69,000)

Sacramento, CA 72,768,000 80,000 147,000 18.8 19.2 (202,000)

San Diego County, CA 67,861,000 0 87,000 16.1 15.7 296,000

San Francisco Peninsula, CA 35,153,000 1,635,000 0 17.6 15.3 1,586,000

San Jose/Silicon Valley, CA 54,009,000 0 538,000 19.9 18.9 416,000

Seattle/Puget Sound, WA 75,311,000 0 199,000 13.5 13.7 (112,000)

WEST TOTAL/AVERAGE 966,593,000 2,547,000 2,657,000 18.24 18.25 890,000

U.S. TOTAL/AVERAGE 3,763,336,000 3,949,000 13,073,000 16.10 16.07 5,934,000



UNITED STATES | SUBURBAN OFFICE | CLASS A


NORTHEAST

Baltimore, MD 32,243,000 17.9 19.3 153,000 25.10 -3.6 2.7

Boston, MA 44,718,000 18.0 18.1 (33,000) 26.20 1.5 -0.2

Fairfield County, CT 30,692,000 15.1 15.2 188,000 35.00 1.1 –

Hartford, CT 7,472,000 14.7 14.3 46,000 20.50 0.6 0.2

Long Island – Nassau, NY 13,695,000 11.5 10.7 108,000 31.50 – –

Long Island – Suffolk, NY 10,614,000 14.4 14.3 5,000 27.90 – –

New Jersey – Central 61,860,000 16.9 16.9 23,000 22.80 -2.3 -11.6

New Jersey – Northern 84,041,000 14.1 14.0 24,000 24.70 1.0 0.9

Philadelphia, PA 67,408,000 16.2 15.5 486,000 24.10 0.1 -1.4

Washington, DC 161,908,000 15.6 15.8 2,000 31.30 0.1 2.4

Westchester County, NY 18,423,000 13.3 13.4 (24,000) 27.40 0.7 –

NORTHEAST TOTAL/AVERAGE 533,073,000 15.68 15.73 979,000 27.42
SOUTH

Atlanta, GA 77,122,000 18.8 18.1 509,000 21.90 2.0 0.1

Charleston, SC 4,425,000 16.0 14.1 85,000 23.10 -1.8 2.5

Charlotte, NC 18,192,000 17.4 16.5 149,000 20.20 -0.6 0.1

Columbia, SC 888,000 16.3 16.3 35,000 17.40 2.2 -0.7

Dallas/Fort Worth, TX 90,438,000 18.6 18.4 184,000 24.80 0.0 -0.4

Ft. Lauderdale/Broward Co., FL 10,810,000 19.7 18.9 95,000 28.60 2.4 0.5

Greenville, SC 1,772,000 19.8 20.6 (8,000) 17.60 0.1 -1.0

Houston, TX 69,828,000 17.4 16.6 538,000 26.90 -0.7 -3.5

Jacksonville, FL 9,785,000 12.9 11.6 147,000 19.60 1.6 -2.8

Little Rock, AR 2,689,000 15.1 14.6 13,000 18.50 0.0 0.0

Louisville, KY 7,025,000 24.2 17.3 352,000 20.00 -0.2 4.2

Memphis, TN 7,132,000 10.2 10.2 (5,000) 21.40 -1.3 -3.6

Miami-Dade, FL 15,346,000 21.6 22.0 2,000 32.00 -0.4 -0.2

Nashville, TN 12,809,000 7.5 8.5 (9,000) 22.40 0.1 7.3

Orlando, FL 16,924,000 20.5 20.6 (16,000) 22.70 -1.1 -1.5

Raleigh/Durham/Chapel Hill, NC 25,217,000 16.2 17.0 152,000 21.70 0.6 1.8

Tampa, FL 23,536,000 17.3 17.6 (65,000) 23.10 -1.0 -3.1

West Palm Beach/Palm Beach Co., FL 9,224,000 20.4 20.0 102,000 30.20 0.5 -1.0

SOUTH TOTAL/AVERAGE 403,163,000 17.81 17.38 2,258,000 24.04



UNITED STATES | SUBURBAN OFFICE | CLASS A


MIDWEST

Chicago, IL 75,688,000 19.2 18.8 281,000 27.30 0.0 -1.0
Cincinnati, OH 16,175,000 20.4 19.6 87,000 20.20 -1.1 -1.5
Cleveland, OH 12,937,000 12.1 12.6 (76,000) 21.60 -2.0 -0.7
Columbus, OH 25,563,000 8.1 8.4 (80,000) 17.30 -3.0 -7.2
Detroit, MI 25,659,000 18.1 19.7 (108,000) 22.20 0.0 -1.1
Grand Rapids, MI 2,819,000 32.8 32.8 (2,000) 18.70 0.0 2.1
Indianapolis, IN 15,074,000 16.0 15.2 116,000 16.90 -7.7 –
Kansas City, MO-KS 12,400,000 17.4 17.8 7,000 20.60 -2.3 -8.6
St. Louis, MO 24,153,000 13.2 13.3 (12,000) 21.80 0.6 -5.9
MIDWEST TOTAL/AVERAGE 210,467,000 16.54 16.57 213,000 27.42
WEST

Bakersfield, CA 2,698,000 6.5 6.5 5,000 24.00 0.0 0.0
Boise, ID 4,684,000 24.1 24.2 (3,000) 18.00 0.0 -1.4
Denver, CO 32,750,000 14.2 13.1 467,000 21.50 3.7 3.7
Fairfield, CA 1,763,000 24.9 29.5 (82,000) 25.60 -1.4 -2.7
Fresno, CA 3,850,000 18.0 17.9 28,000 25.20 0.0 0.0
Las Vegas, NV 4,923,000 39.0 38.0 97,000 31.40 -2.9 -6.8
Los Angeles – Inland Empire, CA 4,970,000 32.0 31.9 (3,000) 24.10 -2.9 -11.5
Los Angeles, CA 102,537,000 18.1 18.4 (247,000) 34.60 7.1 -2.0
Oakland, CA 3,582,000 26.8 29.1 (83,000) 25.90 0.9 -9.6
Orange County, CA 32,936,000 23.6 23.6 16,000 26.00 -0.5 -6.9
Phoenix, AZ 31,583,000 26.5 25.8 232,000 23.80 -0.8 -6.0
Pleasanton/Walnut Creek, CA 16,299,000 14.8 14.2 106,000 22.80 -3.6 0.5
Portland, OR 12,549,000 13.6 11.9 221,000 23.20 0.1 1.7
Reno, NV 3,001,000 17.1 20.0 (86,000) 19.90 0.0 -2.9
Sacramento, CA 16,388,000 25.9 25.0 219,000 23.60 -0.8 -4.5
San Diego County, CA 23,983,000 17.3 15.8 286,000 31.60 -0.8 -5.1
San Francisco Peninsula, CA 22,246,000 16.8 13.8 1,605,000 33.10 3.0 1.1
San Jose/Silicon Valley, CA 26,212,000 23.4 20.8 571,000 34.10 -1.7 -5.4
Seattle/Puget Sound, WA 27,263,000 16.0 16.5 (130,000) 27.50 -3.1 7.0
WEST TOTAL/AVERAGE 374,216,000 19.65 19.08 3,216,000 28.76
U.S. TOTAL/AVERAGE 1,520,920,000 17.34 17.11 6,665,000 26.20 weighted 0.63 -1.47
24.40 equal 0.11 -1.23



CANADA | DOWNTOWN OFFICE | ALL INVENTORY


Calgary, AB 37,809,000 0 1,940,000 12.0 10.9 393,000

Edmonton, AB 10,632,000 0 630,000 8.0 7.6 30,000

Guelph, ON 383,000 0 55,000 12.2 13.8 (6,000)

Halifax, NS 4,913,000 0 4,000 9.2 6.5 4,000

Kitchener-Waterloo, ON 3,592,000 0 176,000 14.1 13.3 29,000

Montreal, QC 49,429,000 0 0 7.2 7.4 (73,000)

Ottawa, ON 14,992,000 0 550,000 5.6 5.6 (2,000)

Regina, SK 3,549,000 33,000 200,000 1.4 1.8 (10,000)

Saskatoon, SK 2,092,000 20,000 70,000 5.8 4.6 24,000

Toronto, ON 88,032,000 0 645,000 5.4 5.5 928,000

Vancouver, BC 24,237,000 0 127,000 4.6 3.7 215,000

Winnipeg, MB 11,139,000 0 0 7.2 6.8 38,000

CANADA TOTAL/AVERAGE 250,797,000 53,000 4,396,000 7.02 6.75 1,570,000

CANADA | DOWNTOWN OFFICE | CLASS A

VACANCY VACANCY AVERAGE ANNUAL QUARTERLY ANNUAL
RATE (%) RATE (%) ABSORPTION QUOTED RENT CHANGE CHANGE
EXISTING INVENTORY (SF) DEC. 31, MAR. 31, Q1 2011 (CAD PSF) IN RENT IN RENT
MARKET MAR. 31, 2011 2010 2011 (SF) MAR. 31, 2011 (%) (%)

Calgary, AB 24,787,000 9.8 8.8 253,000 39.50 0.0 -2.5

Edmonton, AB 8,254,000 7.2 7.2 (1,000) 39.20 1.9 -5.9

Guelph, ON 203,000 6.9 0.0 14,000 27.40 5.2 5.2

Halifax, NS 1,916,000 4.7 6.7 (4,000) 32.40 2.6 1.6

Kitchener-Waterloo, ON 1,425,000 10.0 8.2 26,000 23.20 -6.4 -16.1

Montreal, QC 23,076,000 7.5 7.3 50,000 37.00 5.7 15.6

Ottawa, ON 9,001,000 6.6 6.6 4,000 48.40 0.2 0.3

Regina, SK 1,031,000 1.1 1.5 (5,000) 37.10 6.1 6.7

Saskatoon, SK 492,000 0.2 0.2 0 34.00 0.0 7.9

Toronto, ON 41,585,000 6.7 6.1 571,000 55.70 8.5 9.4

Vancouver, BC 9,843,000 2.8 2.4 40,000 53.50 0.9 9.2

Winnipeg, MB 2,619,000 6.6 6.6 1,000 30.00 0.0 –

CANADA TOTAL/AVERAGE 124,232,000 7.11 6.64 949,000 45.60 weighted 4.21 5.34

38.10 equal 2.33 1.23



CANADA | SUBURBAN OFFICE | ALL INVENTORY


Calgary, AB 23,303,000 0 606,000 11.2 9.8 322,000
Edmonton, AB 8,817,000 0 40,000 15.5 15.4 23,000
Guelph, ON 1,353,000 0 0 3.8 4.3 (6,000)
Halifax, NS 6,256,000 59,000 50,000 11.0 9.7 6,000
Kitchener-Waterloo, ON 5,889,000 52,000 519,000 6.3 8.0 (49,000)
Montreal, QC 23,621,000 0 112,000 9.8 9.9 (30,000)
Ottawa, ON 20,619,000 60,000 122,000 8.0 7.9 (52,000)
Regina, SK 659,000 0 0 0.6 0.3 2,000
Toronto, ON 97,815,000 0 0 6.6 7.2 830,000
Vancouver, BC 27,273,000 113,000 668,000 10.8 10.9 45,000
Winnipeg, MB 3,173,000 0 37,000 11.8 12.5 (17,000)
CANADA TOTAL/AVERAGE 218,777,000 283,000 2,154,000 8.60 8.76 1,074,000

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 2011 (CAD PSF) IN RENT IN RENT
MARKET MAR. 31, 2011 2010 2011 (SF) MAR. 31, 2011 (%) (%)

Calgary, AB 10,609,000 12.1 9.9 229,000 37.00 5.7 0.0
Guelph, ON 821,000 0.4 1.1 (6,000) 25.60 -1.3 -3.8
Halifax, NS 2,650,000 8.8 7.8 24,000 28.30 5.9 8.3
Kitchener-Waterloo, ON 2,413,000 7.7 10.4 (18,000) 23.00 -3.1 -13.8
Montreal, QC 13,226,000 8.6 8.6 (2,000) 30.00 15.4 25.0
Ottawa, ON 11,626,000 7.4 7.8 9,000 32.70 2.0 0.8
Regina, SK 659,000 0.6 0.3 2,000 28.50 0.0 16.3
Toronto, ON 43,062,000 6.8 8.1 434,000 30.40 -0.4 6.0
Vancouver, BC 13,132,000 13.0 13.3 28,000 38.50 1.3 40.0
CANADA TOTAL/AVERAGE 98,198,000 8.49 8.96 700,000 32.10 weighted 3.09 10.54
30.40 equal 2.83 8.07

Glossary
Inventory – Includes all existing multi- or single- New Supply – Includes completed speculative and Cap Rate – (Or going-in cap rate) Capitalization
tenant leased and owner-occupied office properties build-to-suit construction. New supply quoted on a rates in this survey are based on multi-tenant
greater than or equal to 10,000 square feet (net net basis after any demolitions or conversions. institutional grade buildings fully leased at market
rentable area). In some larger markets this minimum rents. Cap rates are calculated by dividing net
size 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 PSF = per square foot
physically vacant as at the survey date including surcharges added where applicable). All office rents CBD = central business district
direct vacant and sublease space. in this report are quoted on an annual, gross per
square foot basis. Rent calculations do not include
Absorption – Net change in physically occupied sublease space.
space over a given period of time.



UNITED STATES | OFFICE INVESTMENT

CBD CBD SUBURBAN SUBURBAN 512 offices in
61 countries on
SALES PRICE CAP RATE SALES PRICE CAP RATE
MARKET (USD PSF) (%) (USD PSF) (%)
Atlanta, GA 125.00 8.52 141.00 9.08
Bakersfield, CA
Baltimore, MD
–
–
–
–
178.56
181.00
7.25
7.50
6 continents
Boston, MA 558.00 5.70 128.00 – United States: 125
Charleston, SC 250.00 8.00 135.00 11.00 Canada: 38
Chicago, IL 165.00 7.25 106.00 8.50 Latin America: 18
Columbus, OH – 105.00 7.00 Asia Pacific: 214
Dallas/Fort Worth, TX 80.00 8.00 110.00 7.50 EMEA: 117
Denver, CO 280.00 7.50 150.00 8.20
Fairfield County, CT – – 250.00 8.00 • $1.5 billion in annual revenue
Fresno, CA 105.00 9.00 140.00 8.50
Ft. Lauderdale/Broward Co., FL – – 94.00 7.00
• 979 million square feet under
Greenville, SC – – – – management
Hartford, CT – – 34.00 9.45 • Over 12,000 professionals
Houston, TX 191.50 7.50 175.00 8.10
Jacksonville, FL 90.95 9.80 116.25 8.75
Kansas City, MO-KS – 8.00 – 8.00 COLLIERS INTERNATIONAL
Las Vegas, NV – – 51.43 –
Little Rock, AR 88.00 9.50 110.00 9.25 601 Union Street, Suite 4800
Long Island – Nassau, NY – – 75.00 6.10 Seattle, WA 98101
Long Island – Suffolk, NY – – 75.00 6.10 TEL +1 206 695 4200
Los Angeles – Inland Empire, CA – – 89.00 –
Los Angeles, CA 300.00 5.50 250.00 8.00
Miami-Dade, FL – – 225.00 –
Nashville, TN – – 65.00 7.75 FOR MORE INFORMATION
New York, NY – Downtown Manhattan 97.00 6.90 – – Ross J. Moore
New York, NY – Midtown Manhattan 404.00 5.00 – – Chief Economist | USA
New York, NY – Midtown S. Manhattan 404.00 5.00 – –
TEL +1 617 722 0221
Oakland, CA – 8.00 – 9.00
Orange County, CA – – 175.00 8.00 EMAIL ross.moore@colliers.com
Philadelphia, PA 132.00 9.00 117.00 9.00
Phoenix, AZ 129.00 – 70.00 10.00
Pleasanton/Walnut Creek, CA 112.50 8.00 87.50 8.50
Raleigh/Durham/Chapel Hill, NC 292.07 – 129.22 – Copyright © 2011 Colliers International.
Sacramento, CA 180.00 8.10 135.00 8.30 The information contained herein has been obtained
San Diego County, CA – – 190.08 – from sources deemed reliable. While every reasonable
San Francisco Peninsula, CA – – 250.00 6.50 effort has been made to ensure its accuracy, we cannot
San Francisco, CA 317.00 6.50 – – guarantee it. No responsibility is assumed for any
inaccuracies. Readers are encouraged to consult their
Seattle/Puget Sound, WA 152.16 8.14 90.53 7.02 professional advisors prior to acting on any of the
St. Louis, MO 90.00 9.00 127.00 8.50 material contained in this report.
Stamford, CT 350.00 8.00 – –
Stockton/San Joaquin County, CA 125.00 8.60 – –
Tampa, FL – – 191.50 9.50
West Palm Beach/Palm Beach Co., FL – – 217.00 9.25
Westchester County, NY – – 250.00 8.00
White Plains, NY 350.00 8.00 – –

CANADA | OFFICE INVESTMENT

CBD CBD SUBURBAN SUBURBAN
SALES PRICE CAP RATE SALES PRICE CAP RATE
MARKET (CAD PSF) (%) (CAD PSF) (%)
Calgary, AB 380.00 6.50 350.00 7.00
Edmonton – – 360.59 6.43
Guelph, ON 140.00 7.50 150.00 7.50
Halifax, NS – – 125.00 8.25
Kitchener-Waterloo, ON 140.00 7.50 150.00 7.50
Montreal, QC 275.00 7.00 190.00 7.50
Ottawa, ON 270.00 7.25 145.00 7.60
Regina, SK 98.00 8.00 – –
Saskatoon, SK 240.00 7.00 – –
Toronto, ON – – – –
Vancouver, BC 400.00 5.75 300.00 6.50 Accelerating success.
Winnipeg, MB 155.00 7.75 135.00 7.75

WWW.COLLIERS.COM

North American Office Highlights 1Q 2011

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