Las Vegas Office Commercial Real Estate Market report

1. Las Vegas, Nevada
Office Overview
4th QTR Report 2009
commercial real estate
storm gathers strength
As the cold weather approaches with longer
winter nights, the commercial real estate storm
is also gathering strength. According to the
AT A GLANCE Mortgage Bankers Association, “The dollar value
of loans dropped 56% for office properties.”
Overall vacancy rates showed an increase from 20.50% in 3rd quarter
2009 to the current rate of 20.79% at the end of 4th quarter 2009.This
Real Capital Analytic’s also stated, “The credit
rate is escalating from a year ago when rates were around 16.7%. crisis has driven $138 billion worth of U.S.
commercial properties into default, foreclosure
Average rental rates continue to show lower levels than we witnessed
a year ago at a current rate of $2.10 per square foot per month psf/ or debt restructuring.” Close to 200 small banks
mo (FSG). This is also a drop from last quarter rates of $2.12 psf/ across the U.S will close in the coming months
mo (FSG). Modified Gross (MG) reported at $1.60 psf/mo and Net
and larger banks will continue to see trouble
(NNN) rates averaged at $1.26 psf/mo
ahead as some $1.8 trillion of commercial real
Economic outlook is still going to be a growing concern for both estate debt is being held on banks books. Jon
landlords and tenants as tighter credit terms, rising inflation and a
D Greenlee, associate director at the Division of
weak job market continue to affect the Las Vegas area.
Banking Supervision and Regulation released
that “In addition to losses caused by declining
OFFICE MARKET INDICATORS property cash flows and deteriorating conditions
Change Since
for construction loans, losses will also be boosted
Current 4Q09 4Q08
by the depreciating collateral value underlying
Vacancy 20.79%
those $500 billion maturing commercial loans.
Lease Rates (FSG) $2.10 The losses will place continued pressure on
Net Absorption * (80,478) banks earnings, especially those of smaller
Construction N/A regional and community banks that have high
*The arrows are trend indicators over the specified time period, and do not represent a positive or negative concentrations of CRE loans.”
value. (e.g., absorption could be negative but still represent a positive trend over a specified period.)
CommerCe re al e state solutions | FourtH Quarter - 2 0 09 | office m arke t review

2. Commercial Real Estate Storm Gathers Strength (continued)
The Feds are working on a solution and in July they allowed “investors participating in its Term Asset-
Backed Securities Loan Facility (TALF) to purchase existing securities backed by loans the government
will cover for apartment complexes, office buildings, retail shopping centers and other commercial
property.” Greenlee stated. Still Lenders losses are casting a shadow over lending and they are still
reluctant to extend credit as property values fall and unemployment rises. Developers have also now
halted any new development based on the current fundamentals of limited to / no financing, high vacancy
and greatly reduced tenant demand.
National unemployment rates reached a 27 year high at 10.2%, roughly 15.7 million unemployed workers.
The Las Vegas economy also continues to be impacted by downturns and high employment rates in all
major sectors, including gaming, construction, financial and real estate. The recession will most likely be
a “jobless recovery.” Since World War II there have been a total of 11 recessions and in the most recent
recessions before the 2007 recession, job growth lagged long after the recession. In fact it took several
years for the unemployment rate to return back to prerecession levels. Employment growth is critical to
future economic growth and the return to a healthy commercial market; which may take several years to
accomplish. It is important to note that Las Vegas has weathered a number of economic downturns and
has responded with great enthusiasm. This down cycle will likely respond similarly; only time will tell!
Office Market
Overview
By the End of 2009, the Las Vegas commercial office market continued to report upward movement in vacancies, while
overall demand slowed. The latest market performance was impacted by several factors, including economic weakness
locally and nationally, as well as volatility in the global financial markets. Professional office tenants have been impacted
by a contracting economy, continued declines in housing values, raising unemployment and ultimately impacting consumer
spending and pullback within the tourism industry.
Vacancies
Valley-wide average vacancies continued to escalate as the supply-side of the equation, combined with declining demand
and contraction in real estate related industries, continues to impact the competitive landscape. The office market vacancies
reached 20.79 % at the end of the year, which was higher than the 20.50 percent reported one quarter ago (Q3 2009) and
3.8 points higher than the 16.7 percent reported one year ago. Available sublease space dropped slightly in 4th quarter
with currently availability at 500,407 sf (1.14% of the total market) of available sublease space. Office submarkets reporting
the highest level of availability included emerging submarkets with the newest supply of buildings such as the Northwest
(38.03%), Airport (23.39%), and Southwest (27.0%) submarkets. The high vacancy rates in these submarkets are a result of
newer buildings that have come on line with little or no pre-leasing activity, combined with lease concessions, defaults and
downsizing which is causing vacancy to rise. Below-market-average vacancies were noted in the Downtown (10.12%), Central
East (17.43%), and Central West (14.92 %). Net abosorbption for the quarter was still in the negatives at -80,478. This ia an
imporovement from the past quarters. Overall vancancy for 2009 totaled to -1,201,658.
CommerCe re al e state solutions | FourtH Quarter - 2 0 09 | office m arke t review

3. Pricing (Average Asking Rents)
The latest performance contributed to price erosion as landlords and building owners compete for a limited number of users.
By 4th quarter 2009, the market reported average asking rents of $2.10 sf/FSG, a drop from the $2.12 sf/FSG from 3rd
quarter 2009. Elevated tenant improvement allowances and free rent concessions are impacting returns for landlords and
ultimately lenders. We expect this trend to continue throughout the majority of 2009 as inventory levels remain elevated.
Average rents in the Top Tier Class A segment reached $3.29 sf/FSG with newer, high-end buildings targeting a price point
well above the average. Lower Tier Class A buildings rates were slightly lower at $2.74 sf / FSG. Also above the valley
average was Top Tier Class B buildings that reported average asking rents of $2.50 sf/FSG. However the Lower Tier Class
B buildings were lower than the average at $1.89 sf/FSG. Pricing for Class C properties has average rates around $1.86 sf/
FSG (Top Tier C) and $1.65 sf/FSG (Lower Tier C). Downtown ($2.33 sf/FSG), Southeast ($2.31 sf/FSG) and Southwest
($2.57 sf/FSG) submarkets show the highest lease rates, while Central West ($1.74 sf/FSG), Northwest ($1.81 sf/FSG) and
Central East ($1.73 sf/FSG) submarkets show the lowest average lease rates. Please Note: the average asking rates do not
take inconsideration free rent & rental concession.
* Full Service Gross (FSG): A lease requiring the owner to pay all operating expenses, such as cleaning, maintenance and repairs, utilities, insurance and
ad valorem taxes.
Outlook
The market will continue to be impacted by cautious consumer/companies activity, causing vacancies to remain elevated
and most likely continue to increase. Near-term contraction within the employment market will also have an impact on office
market demand. The effect of extended lease up periods and softening economic conditions will contribute to increased
repossession activity by lenders that will result in further price adjustments. The coming year will be more critical to see if
the economy can continue with out the hand holding of government help in the form of stimulus spending such as cash-for-
cluckers, federal programs to keep interest rates low and new home buyer credits. Expect job growth to remain sluggish and
remain that way for at least 18 to 24 months before we start to see true recovery. The office market is like a big ship, years
of analysis shows that once the market starts on a downward cycle it takes years to turn it around.
Performance by Product Type & Classifications
The market will continue to be impacted by cautious consumer/companies activity, causing vacancies to remain elevated While
broader market trends are clear, by providing basic break out of the office product types, it is also important to understand the
performance of detailed key sectors within the commercial office market. At Commerce, we know the importance of updating
the classification of buildings as the market grows older. We have taken the steps this quarter to start with a new classification
process. As a team, we have separated and reclassified all office buildings in a “Tier” format. The Tier format will separate
out classes in a Top Tier Class and Lower Tier Class. This will help our clients to better understand, for example, the number
of “real” Class A buildings that the Las Vegas area has that would qualify as Class A in other markets such as Los Angels and
New York. While also taking a look at lower tier Class A buildings, buildings that is what the Las Vegas market considers Class
A, but would not qualify as Class A in Los Angeles or New York.
The following is the Commerce Real Estate Solutions 4th Quarter Market report which highlights market conditions by building
type and classification.
CommerCe re al e state solutions | FourtH Quarter - 2 0 09 | office m arke t review

4. commerce / cushman & wakefield
las Vegas office market report Q4 2009
Professional Buildings
inventory vacancy Demand & Supply Pricing
no. of existing under Const. Planned Vacancy net space Gross space new sub asking rent (FsG)
Bldgs. sF sF sF sF rate occupied leased supply lease low High W avg.
Northwest
Class tta 1 186,300 - - 186,300 100.00% - - 186,300 - $2.50 $2.65 $3.00
Class lta 1 126,915 - - 88,976 70.11% (6,490) - - - $2.40 $2.65 $2.53
Class ttB 33 912,187 - - 314,017 34.42% (21,802) 1,330 40,260 - $1.20 $3.25 $2.02
Class ltB 16 569,428 - - 198,602 34.88% 17,327 17,327 - - $1.55 $2.15 $1.92
Class ttC 56 1,075,020 - - 303,387 28.22% (4,519) 15,381 - 1,375 $1.50 $1.50 $1.50
Class ltC - - - - - 0.00% - - - -
total 107 2,869,850 - - 1,091,282 38.03% (15,484) 34,038 226,560 1,375 $1.20 $3.25 $1.81
Downtown
Class tta 3 655,254 - - 32,553 4.97% 434 434 - - $3.00 $3.00 $3.00
Class lta 1 103,951 - - - 0.00% - - - -
Class ttB - - - - - 0.00% - - - -
Class ltB 10 581,117 - - 136,208 23.44% 8,444 8,444 - 11,395 $1.00 $2.90 $2.05
Class ttC 5 343,032 - - 22,624 6.60% 1,312 1,312 - - $2.60 $2.60 $2.60
Class ltC 46 860,417 - - 66,142 7.69% - - - - $1.95 $1.95 $1.95
total 65 2,543,771 - - 257,527 10.12% 10,190 10,190 - 11,395 $1.00 $3.00 $2.33
central east
Class tta 5 995,120 - - 122,297 12.29% (45,901) - - 20,397 $3.65 $3.85 $3.58
Class lta 5 387,590 - - 86,644 22.35% (4,615) 2,000 - 27,885 $2.85 $3.25 $2.98
Class ttB - - - - - 0.00% - - - -
Class ltB 6 529,138 - - 172,896 32.68% (10,867) 2,062 - - $1.00 $1.80 $1.34
Class ttC 75 2,625,301 - - 478,295 18.22% 1,663 19,029 - - $1.00 $1.85 $1.35
Class ltC 58 1,273,364 - - 152,877 12.01% (7,900) 17,161 - 4,500 $0.99 $1.70 $1.35
total 149 5,810,513 - - 1,013,009 17.43% (67,620) 40,252 - 52,782 $0.99 $3.85 $1.73
central west
Class tta - - - - - 0.00% - - - -
Class lta 1 157,624 - - 10,534 6.68% (4,215) - - - $2.80 $2.90 $2.85
Class ttB - - - - - 0.00% - - - -
Class ltB 44 2,218,624 - - 295,439 13.32% (10,234) 19,426 - 38,763 $1.00 $2.25 $1.75
Class ttC 125 3,216,897 - - 525,735 16.34% (24,245) 40,423 - 11,160 $1.25 $2.00 $1.56
Class ltC 52 780,205 - - 119,198 15.28% (10,675) 5,914 - - $1.00 $2.70 $1.68
total 222 6,373,350 - - 950,906 14.92% (49,369) 65,763 - 49,923 $1.00 $2.90 $1.74
west
Class tta 1 143,633 - - 62,935 43.82% (30,910) - - -
Class lta 3 293,255 - - 71,572 24.41% 6,113 6,113 - - $1.95 $2.35 $2.22
Class ttB 37 1,951,832 - - 332,199 17.02% 13,690 29,244 - 50,490 $1.00 $2.70 $1.88
Class ltB 121 2,441,269 - - 282,710 11.58% (7,485) 13,588 - 26,197 $1.00 $2.25 $1.60
Class ttC 179 2,536,967 - - 561,498 22.13% (70,733) 12,310 - 31,741 $1.00 $5.00 $2.70
Class ltC 11 245,699 - - 58,203 23.69% 3,950 8,200 - - $1.05 $2.25 $1.67
total 352 7,612,655 - - 1,369,117 17.98% (85,375) 69,455 - 108,428 $1.00 $5.00 $1.91
Southwest
Class tta - - - - - 0.00% - - - -
Class lta 2 336,140 - - 274,214 81.58% - - - - $2.70 $3.40 $3.09
Class ttB 28 1,595,947 - - 513,856 32.20% (1,599) 1,140 152,160 38,149 $2.40 $2.45 $2.40
Class ltB 102 1,797,248 - - 323,658 18.01% 9,117 10,072 - 33,630 $1.91 $2.50 $2.21
Class ttC 68 1,000,379 - - 158,703 15.86% 10,964 13,840 - 8,093 $1.40 $2.85 $1.96
Class ltC 6 113,662 - - 37,389 32.89% (3,363) - - - $1.10 $3.10 $1.98
total 206 4,843,376 - - 1,307,820 27.00% 15,119 25,052 152,160 79,872 $1.10 $3.40 $2.57
airport
Class tta - - - - - 0.00% - - - -
Class lta 5 433,464 - - 145,115 33.48% 39,380 39,380 - 82,637 $2.00 $2.85 $2.35
Class ttB 17 1,157,337 - - 276,958 23.93% - - - - $2.35 $3.55 $2.75
Class ltB 35 1,675,945 - - 309,034 18.44% (17,227) 1,871 - 46,175 $1.35 $2.35 $1.94
Class ttC 153 1,769,918 - - 446,894 25.25% 13,817 31,717 - 6,900 $1.15 $3.10 $1.91
Class ltC - - - - - 0.00% - - - -
total 210 5,036,664 - - 1,178,001 23.39% 35,970 72,968 - 135,712 $1.15 $3.55 $2.36
Southeast
Class tta - - - - - 0.00% - - - -
Class lta 4 323,132 - - 168,534 52.16% - - - - $2.95 $2.95 $2.95
Class ttB 23 1,238,237 - - 315,916 25.51% 26,427 33,033 - 24,900 $2.95 $2.95 $2.95
Class ltB 40 1,220,033 - - 240,469 19.71% (2,249) 3,849 - - $1.69 $2.95 $2.32
Class ttC 312 4,221,732 - - 869,677 20.60% 45,644 62,185 - 16,669 $1.05 $2.00 $1.45
Class ltC - - - - - 0.00% - - - -
total 379 7,003,134 - - 1,594,596 22.77% 69,822 99,067 - 41,569 $1.05 $2.95 $2.31
North
Class tta - - - - - 0.00% - - - -
Class lta - - - - - 0.00% - - - -
Class ttB - - - - - 0.00% - - - -
Class ltB 4 133,918 - - 62,287 46.51% - - - - $1.60 $2.65 $2.30
Class ttC 70 1,431,706 - - 313,972 21.93% 6,269 36,418 - 19,351 $1.00 $2.65 $1.69
Class ltC 19 316,522 - - 4,000 1.26% - - - - $2.45 $2.75 $2.58
total 93 1,882,146 - - 380,259 20.20% 6,269 36,418 - 19,351
Las vegas total
Class tta 10 1,980,307 - - 404,085 20.41% (76,377) 434 186,300 20,397 $2.50 $3.85 $3.19
Class lta 22 2,162,071 - - 845,589 39.11% 30,173 47,493 - 110,522 $1.95 $3.40 $2.71
Class ttB 138 6,855,540 - - 1,752,946 25.57% 16,716 64,747 192,420 113,539 $1.00 $3.55 $2.40
Class ltB 378 11,166,720 - - 2,021,303 18.10% (13,174) 76,639 - 156,160 $1.00 $2.95 $1.94
Class ttC 1,043 18,220,952 - - 3,680,785 20.20% (19,828) 232,615 - 95,289 $1.00 $5.00 $1.86
Class ltC 192 3,589,869 - - 437,809 12.20% (17,988) 31,275 - 4,500 $0.99 $3.10 $1.87
total 1,783 43,975,459 - - 9,142,517 20.79% (80,478) 453,203 378,720 500,407 $0.99 $5.00 $2.10
CommerCe re al e state solutions | FourtH Quarter - 2 0 09 | office m arke t review

5. Las Vegas, Nevada | Commerce
Fourth Quarter 2009
Medical Office Market
The medical sector of the office market continues to perform slightly better than the
Medical Office Market
balance of the market in 2009. Vacancies within the segment had a slight rise this
The medical sector of 14.1% 3rd quarter 2009 toto perform slightly better than the balance of the market in 2009.
quarter from the office market continues 14.8 % 4th quarter 2009.
Vacancies within the segment had a slight rise this quarter from 14.1% 3rd quarter 2009 to 14.8 % 4th quarter 2009.
commerce / cushman & wakefield
las Vegas office market report Q4 2009
medical Buildings
inventory vacancy Demand & Supply Pricing
no. of existing under Const. Planned Vacancy net space Gross space new sub asking rent
Bldgs. sF sF sF sF rate occupied leased supply lease low High W avg.
northwest 77 2,130,771 - - 239,790 11.25% 11,205 14,282 55,064 4,076 $1.65 $1.81 $1.65
Downtown 2 29,985 - - 0.00% - - - -
Central east 63 2,024,755 - - 300,276 14.83% 21,956 35,816 - 8,688 $1.60 $1.75 $1.73
Central West 67 1,720,882 - - 81,858 4.76% (6,805) - - 21,062 $1.40 $2.00 $1.76
West 45 1,455,064 262,919 18.07% 22,251 42,100 175,591 - $1.59 $2.85 $1.76
southwest 53 1,576,427 341,994 21.69% (8,964) - - - $1.70 $2.60 $2.15
airport 8 82,043 - 16,264 19.82% - - - - $1.55 $2.15 $1.69
southeast 87 1,893,365 - - 435,071 22.98% 10,114 12,004 - 24,973 $1.75 $3.00 $2.26
north 14 487,626 - - 17,410 3.57% 2,100 4,800 - - $1.55 $2.55 $1.90
total 416 11,400,918 - - 1,695,582 14.87% 51,857 109,002 230,655 58,799 $1.40 $3.00 $1.86
Medical Office Submarket - Rates
$3.00
$2.50
$2.00
$1.50
$1.00
$0.50
$0.00 Central Las Vegas
No rthwest Do wnto wn Central East West So uthwest A irpo rt So utheast No rth
West A rea To tal
FSG Rate $1.65 $ 0.00 $1.73 $1.76 $ 0.00 $ 0.00 $ 0.00 $ 2.17 $ 0.00 $1.83
M G Rate $1.81 $ 0.00 $1.38 $1.66 $1.81 $ 2.05 $1.53 $1.52 $ 0.00 $1.68
NNN Rate $1.46 $ 0.00 $1.35 $1.62 $1.73 $1.76 $1.25 $1.57 $1.37 $1.51
CommerCe re al e state solutions | FourtH Quarter - 2 0 09 | office m arke t review

6. Las Vegas, Nevada | Commerce
Fourth Quarter 2009
Professional Office: Quarterly Vacancy
25%
9%
0%
1%
3%
.7
.5
.1
20
20
.8
20
19
20%
0%
8%
%
.3
80
.9
17
.
16
16
0%
6%
.8
8%
14
.6
5%
15% 3%
.1
13
13
.4
.1
9%
12
2%
12
.8
%
.3
10
10
57
%
%
69
9.
10%
49
8.
8.
5%
0%
5
6
6
6
6
7
7
7
7
8
8
8
8
9
9
9
9
20
30
40
10
20
30
40
40
10
20
30
40
10
20
30
40
10
Q
Q
Q
Q
Q
Q
Q
Q
Q
Q
Q
Q
Q
Q
Q
Q
Q
Professional Office: Quarterly Absorption (SF)
1,500,000
1,000,000
500,000
-
(500,000)
(1,000,000)
5
7
8
6
8
6
6
6
7
7
7
9
8
8
9
9
9
30
30
40
10
20
40
40
10
10
20
30
40
10
20
30
40
20
Q
Q
Q
Q
Q
Q
Q
Q
Q
Q
Q
Q
Q
Q
Q
Q
Q
CommerCe re al e state solutions | FourtH Quarter - 2 0 09 | office m arke t review

7. Las Vegas, Nevada | Commerce
Fourth Quarter 2009
Professional Office: Inventory (SF) and Vacancy Rate (%)
50,000,000 25%
45,000,000 20%
40,000,000 15%
35,000,000 10%
30,000,000 5%
25,000,000 0%
5
6
7
6
7
6
6
7
7
8
8
8
8
9
9
9
9
30
40
10
20
30
40
40
10
20
30
40
10
20
30
40
10
20
Q
Q
Q
Q
Q
Q
Q
Q
Q
Q
Q
Q
Q
Q
Q
Q
Q
Professional Office: Office Employment vs Vacancy Rate (%)
350,000 25%
20.79%
325,000
20%
300,000
17.30% 15%
275,000
13.22%
8.96% 10%
250,000 10.88%
8.47%
5%
225,000
200,000 0%
04
05
06
07
08
09
20
20
20
20
20
20
CommerCe re al e state solutions | FourtH Quarter - 2 0 09 | office m arke t review

8. Las Vegas, Nevada | Commerce
Fourth Quarter 2009
Las Vegas Professional Office Market Overview 1998-2009 YTD
10,000,000 20.79% 22.00%
9,000,000
17.30%
8,000,000 15.77% 17.00%
14.62% 14.42% 14.72% 15.28%
14.20% 13.61%
7,000,000
11.59%
11.48%
6,000,000 12.00%
Square Feet
Vacancy
9.32%
5,000,000
4,000,000 7.00%
3,000,000
2,000,000 2.00%
1,000,000
- -3.00%
18
20
22
21
25
30
48
43
12
14
15
17
,49
,02
,62
,75
,24
,19
,55
,97
,6
,8
,7
,3
Base
32
69
81
37
6,
0,
1,
2,
1,
9,
1,
5,
,04
,63
,03
,16
03
89
90
13
78
55
57
45
8
5
6
3
6
2
3
9
7
9
1
9
Ave. Lease Rate Sub
$1.92 $1.94 $2.00 $1.94 $1.88 $1.87 $1.91 $2.03 $1.86 $1.91 $2.34 $2.10
Ave. Lease Rate DT
$2.21 $2.19 $2.27 $2.26 $2.23 $2.16 $2.22 $2.36 $2.27 $2.29 $2.70 $2.33
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Built Net Absorption
Vacant Inventory Vacancy
Professional Office Submarket - Direct vs Sublease Vacancy
40.00% 38.03%
35.00%
30.00% 27.00%
25.00% 23.39% 22.77%
20.20% 20.79%
20.00% 17.43% 17.98%
14.92%
15.00%
1 2%
0.1
10.00%
5.00% 2.69%
1.42% 1.65% 1.03% 1 4%
.1
0.45% 0.91% 0.78% 0.59%
0.05%
0.00%
Central Central Las Vegas
Northwest Downtown West Southwest Airport Southeast North
East West Area Total
Vacacny % 38.03% 10.12% 17.43% 14.92% 17.98% 27.00% 23.39% 22.77% 20.20% 20.79%
Sublease % 0.05% 0.45% 0.91% 0.78% 1.42% 1.65% 2.69% 0.59% 1.03% 1.14%
CommerCe re al e state solutions | FourtH Quarter - 2 0 09 | office m arke t review

9. Las Vegas, Nevada | Commerce
Fourth Quarter 2009
Professional Office: Building Class
Class C
Class B
Class A
Class A Class B Class C
Sublease SF 130,919 269,699 99,789
Vacancy 1,249,674 3,774,249 4,118,594
Existing SF 4,142,378 18,022,260 21,810,821
Professional Office Submarket - Rates
$3.00
$2.50
$2.00
$1.50
$1.00
$0.50
$0.00
Central Central Las Vegas
Northwest Downtown West Southwest Airport Southeast North
East West Area Total
FSG Rate $1.81 $2.33 $1.88 $1.74 $1.91 $2.57 $2.36 $2.31 $0.00 $2.11
MG Rate $1.76 $1.51 $1.11 $1.28 $1.63 $1.87 $1.55 $1.53 $2.16 $1.60
NNN Rate $1.46 $1.50 $0.96 $1.19 $1.33 $1.27 $1.26 $1.40 $0.99 $1.26
CommerCe re al e state solutions | FourtH Quarter - 2 0 09 | office m arke t review

10. GLOSSARY/MAJOR MARKET DEFINITIONS
Commerce Classification Definitions:
Top Tier Class A: Describes the highest quality office space locally available. The architecture of Class A
office structures always prioritizes design and visual appeal over cost, and sometimes over practicality - a Class
A building can be considered a monument and a testament to the success and power of its tenants. Class
A: Generally 100,000 sq. ft. or larger (five or more floors), concrete and steel construction, built since 1980,
business /support amenities, strong identifiable location/access. Most prestigious buildings competing for premier
office users with above average rents for the area. Buildings have high quality standard finishes, state-of-the-art
systems, exceptional accessibility and suggest a definitive market presence.
Lower Tier Class A: Investment – grade property, well located and offering high-quality space. Good design,
above-average workmanship and materials. Well maintained and managed, exceptionally so if an older building.
Quality tenants. Building(s) location considered premier with high market perception standards. Typically higher
rent with excellent building finishes, multiple building amenities and high efficiencies. Class A will have 3 or more
floors, concrete and steel construction.
Top Tier Class B: Building(s) location considered excellent with medium market perception standards. Renovated
and in good locations. Typically lower rent than Class “A” with good building finishes, some building amenities and
medium efficiencies. Built after 2000. Concrete and steel construction.
Lower Tier Class B: Buildings competing for a wide range of office users with average rents for the area.
Building finishes are fair to good for the area and systems are adequate, but the buildings do not compete with
class A at the same price. They are less appealing to tenants than Class A properties, and may be deficient in a
number of respects including floor plans, condition and facilities. They lack prestige and must depend chiefly on
a lower price to attract tenants and investors. Such buildings offer utilitarian space without special attractions and
have ordinary design. Built before 2000. Wood frame and tilt wall construction.
Top Tier Class C: A classification used to describe buildings that generally qualify as no-frills, older buildings
that offer basic space and command lower rents or sale prices compared to other buildings in the same market.
Such buildings typically have below-average maintenance and management, and could have mixed or low tenant
prestige, inferior elevators, and/or mechanical/electrical systems. These buildings lack prestige and must depend
chiefly on a lower price to attract tenants and investors. 15 to 25 years old. Wood frame and tilt wall construction.
Smaller buildings, Garden Style design.
Lower Tier Class C: Older, un-renovated and of any size in average to fair condition. Basic Space in a no-frills
older building. Below –Average maintenance and management. Mixed or low tenant prestige. Inferior elevators
and mechanical/ electrical systems. Class C Buildings are typically 15 to 25 years old but are maintaining steady
occupancy.
Medical: A building is considered medical if greater than 55% of its rentable area is occupied by medical
tenants.
Full Service Gross (FSG): A lease requiring the owner to pay all operating expenses, such as cleaning,
maintenance and repairs, utilities, insurance and ad valorem taxes.
CommerCe re al e state solutions | FourtH Quarter - 2 0 09 | office m arke t review

11. LAs VEGAs | office SUBMARKeT MAP
CommerCe re al e state solutions | FourtH Quarter - 2 0 09 | office m arke t review

12. CoMMerCe | FuLL SerViCe CoMMerCiAL reAL eSTATe SoLuTionS
Commerce Real Estate Solutions has been among the top commercial real estate brokerage firms in the Intermountain
West for 30 years. From our headquarters in Salt Lake City and offices in Provo/Orem, Park City, Clearfield and St. George,
Utah and Las Vegas, Nevada we offer a full range of brokerage services, valuation and consulting, client representation and
property/facility management. Our alliance with Cushman & Wakefield extends our reach worldwide.
CuShMAn & WAkeFieLd ALLiAnCe
A number of Cushman & Wakefield offices, including Commerce Real Estate Solutions, are independently owned and
connected with the company by way of an international alliance. Cushman & Wakefield concentrates on larger markets
like Los Angeles and New York, and alliance members like Commerce Real Estate Solutions concentrate on developing
secondary markets.
Together the geographic coverage is nearly universal. This enables Cushman & Wakefield to provide comprehensive services
for clients with local requirements as well as for those with more expansive national or international portfolios. In either case,
Cushman & Wakefield’s services are supported by the full integrated resources of the entire alliance.
Cushman & Wakefield is the world’s largest privately-held commercial real estate services firm. Founded in 1917, it has 230
offices in 58 countries and more than 15,000 employees. The firm represents a diverse customer base ranging from small
businesses to Fortune 500 companies. It offers a complete range of services within four primary disciplines: Transaction
Services, including tenant and landlord representation in office, industrial and retail real estate; Capital Markets, including
property sales, investment management, valuation services, investment banking, debt and equity financing; Client Solutions,
including integrated real estate strategies for large corporations and property owners, and Consulting Services, including
business and real estate consulting. A recognized leader in global real estate research, the firm publishes a broad array of
proprietary reports available on its online Knowledge Center at www.cushmanwakefield.com.
230 Offices in 58 Countries
Europe
Austria Bulgaria Channel Islands France Ireland Norway Russia
Vienna* Pleven* Jersey* Lyon Cork* Drammen* Moscow
Canada Belgium
Plovdiv*
Sofia*
Czech Republic
Paris Dublin* Oslo*
Stavanger*
Scotland
Brussels Prague Germany Italy Edinburgh
Alberta Manitoba Newfoundland Berlin Bologna Poland Glasgow
Calgary Winnipeg* St. John's* Denmark
Dusseldorf Milan Warsaw
Edmonton* Copenhagen* Serbia
New Brunswick Nova Scotia Frankfurt Rome
Portugal Belgrade*
British Columbia Fredericton* Halifax* England Hamburg
Luxembourg Lisbon
Vancouver Moncton* Birmingham Munich Slovakia
Ontario Luxembourg*
Saint John* London-City Romania Bratislava
Greece
United States London
Newmarket
London-West End
Athens
Macedonia Bucharest
Spain
Manchester Skopje* Timisoara
Ottawa Barcelona
Thames Valley Hungary
Toronto Central Budapest
The Netherlands Madrid
Toronto East Amsterdam
Alabama Sweden
Maine Toronto West
Birmingham* Northern Ireland Stockholm
Portland Quebec Belfast*
Mobile Switzerland
Maryland Montreal Central Basel*
Arizona Montreal Suburban
Phoenix Baltimore Geneva*
Tempe Bethesda Zurich*
Tucson* Massachusetts Turkey
California Boston Istanbul
Carlsbad Michigan
Inland Empire Ohio
L.A.
Detroit*
Grand Rapids* Cincinnati* Middle East/Africa
L.A. South Bay Grosse Point Cleveland* Israel South Africa United Arab Emirates
L.A. West Kalamazoo* Columbus* Tel Aviv* Cape Town* Dubai
Marin/Sonoma Cty Lansing* Toledo* Durban*
Oakland Muskegon* Lebanon
Oregon Johannesburg*
Orange County Beirut*
Portland Pretoria*
Sacramento Minnesota
San Diego - Downtown Minneapolis
Minneapolis Suburban
Pennsylvania
San Diego - Eastgate Philadelphia
San Francisco Missouri Philadelphia Suburban
San Jose Kansas City* Pittsburgh* Australia/Asia Pacific
Walnut Creek St. Louis*
Puerto Rico Australia Malaysia
Colorado Nevada San Juan* Adelaide* Kuala Lumpur*
Colorado Springs*
Latin America
Las Vegas* Melbourne*
South Carolina New Zealand
Denver Reno Sydney
Charleston* Auckland*
Connecticut Argentina Ecuador China Wellington*
New Hampshire Greenville/Spartanburg* Buenos Aires Quito
Hartford Manchester Beijing
Stamford Tennessee Chengdu Pakistan
Brazil Mexico
New Jersey Guangzhou Karachi*
Memphis* Manaus Ciudad Juarez
Delaware East Rutherford Nashville* Rio de Janeiro Guadalajara* Hong Kong Philippines
Wilmington Edison São Paulo Mexico City Shanghai Manila*
District of Morristown Texas Monterrey Shenzhen
Columbia Austin* Chile Singapore
New York Dallas Santiago* Peru Fiji*
Washington, D.C. South Korea
Albany* Lima
Houston Colombia India Busan
Florida Binghamton*
San Antonio*
Buffalo* Bogota* Venezuela Bangalore Seoul
Ft. Lauderdale
Corning/Elmira* Caracas Chennai
Ft. Myers* Utah Gurgaon Taiwan
Jacksonville Islandia Clearfield/Ogden* Taipei*
Ithaca* Hyderabad
Miami Park City*
Kingston* Kolkata Thailand
Orlando Provo/Orem*
Melville, LI Mumbai – City Bangkok*
Palm Beach Gardens Salt Lake City*
N.Y. Downtown Mumbai – Suburbs
Tampa St. George* Vietnam
N.Y. Midtown New Delhi
Georgia Virginia Pune Hanoi
Rochester* Ho Chi Minh City C&W Owned Offices
Atlanta Syracuse Fredicksburg*
Indonesia
Syracuse* McLean
Hawaii Jakarta C&W Alliance/Associate Offices
Utica* Newport News*
Honolulu
Watertown* Norfolk/Virginia Beach* Japan AS OF MARCH 2009
Illinois Westchester County Richmond* Tokyo
Chicago Roanoke*
Chicago Suburban North Carolina
Washington
Charlotte*
Indiana Bellevue
Greensboro/Winston-Salem*
Indianapolis* Seattle
Raleigh/Cary
Kentucky Raleigh/Durham* Wisconsin
Louisville* Tarboro* Milwaukee*
CommerCe re al e state solutions | FourtH Quarter - 2 0 09 | office m arke t review