Commerce / Cushman & Wakefield - Las Vegas Commercial Real Estate Office 3rd Qtr Market report

1. Office
Market Report
Las Vegas, Nevada
20
09

2. COMMERCE CRG is a regional real estate firm dedicated first
and foremost to our clients. With the industry’s premier
professionals, and industry leading technology, our mission is to
exceed our clients’ expectations through service excellence.
C o m m e r C e C r G | t h i r d Q ua r t e r - 2 0 0 9 | o f f i c e m a r k e t r e v i e w

3. OFFICE MARKET INDICATORS
Change Since
Current 3Q09 3Q08 LAS VEGAS
MARKET OVERVIEW
Vacancy 20.50%
Lease Rates $1.95
(FSG) $2.12
Net Absorption * (150,214)
Construction N/A
*The arrows are trend indicators over the specified time period, and do not represent a positive or negative
value. (e.g., absorption could be negative but still represent a positive trend over a specified period.)
LAS VEGAS MARKET OVERVIEW
AT A GLANCE
As the cold weather approaches with longer winter nights,
Overall vacancy rates showed an increase from 20.11% in 2nd quarter the commercial real estate storm is also gathering strength.
2009 to the current rate of 20.50% at the end of 3rd quarter 2009. This
rate is escalating from a year ago when rates were around 16.7%. According to the Mortgage Bankers Association, “The dollar
value of loans dropped 56% for office properties.” Real Capital
Average rental rates continue to show lower levels than we witnessed Analytic’s also stated, “The credit crisis has driven $138 billion
a year ago at a current rate of $1.95 per square foot per month psf/mo
worth of U.S. commercial properties into default, foreclosure
(market average). This is also a drop from last quarter rates of $2.12 psf/
mo (market average). Full Service Gross (FSG) rates during 3rd quarter or debt restructuring.” Close to 200 small banks across the U.S
declined to $2.12 psf/mo, Modified Gross (MG) reported at $1.66 psf/mo will close in the coming months and larger banks will continue
and Net Net Net (NNN) rates averaged at $1.36 psf/mo to see trouble ahead as some $1.8 trillion of commercial real
Economic outlook is still going to be a growing concern for both landlords
estate debt hold on banks books. Jon D Greenlee, associate
and tenants as tighter credit terms, rising inflation and a weak job market director at the Division of Banking Supervision and Regulation
continue to affect the Las Vegas area. released that “In addition to losses caused by declining property
cash flows and deteriorating conditions for construction loans,
losses will also be boosted by the depreciating collateral value
underlying those $500 billion maturing commercial loans. The losses will place continued pressure on banks earnings, especially those of
smaller regional and community banks that have high concentrations of CRE loans.” The Feds are working on a solution and in the 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!
C o m m e r C e C r G | t h i r d Q ua r t e r - 2 0 0 9 | o f f i c e m a r k e t r e v i e w

4. OFFICE MARKET | OVERVIEW
By the middle of 2009, the Las Vegas commercial office market
continued to report upward movement in vacancies, while overall LAS VEGAS
demand slowed. The latest market performance was impacted by MARKET OVERVIEW
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.
OFFICE MARKET | 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 20.50 percent at the
end of the 3rd quarter, which was higher than the 20.11 percent reported one quarter ago (Q2 2009) and 3.8 points higher than the 16.7
percent reported one year ago (Q3 2008). Available sublease space dropped slightly in 3rd quarter with currently availability at 766,978
sf (1.74% 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 (25.70 percent), Southeast (23.8 percent), and Southwest
(29.0%) 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 (10.52%), Central East (16.34 %), and Central West (14.32 %).
OFFICE MARKET | PRICING (Average Asking Rents)
The latest performance contributed to price erosion as landlords and building owners compete for a limited number of users. By 3rd
quarter 2009, the market reported average asking rents of $2.12 sf/FSG, a drop from the $2.38 sf/FSG from 3rd quarter 2008. 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 $3.13 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 $2.79 sf / FSG. Also above the valley average was Top Tier
Class B buildings that reported average asking rents of $2.35 sf/FSG. However the Lower Tier Class B buildings were lower than the
average at $1.96 sf/FSG. Pricing for Class C properties has average rates around $1.93 sf/FSG (Top Tier C) and $1.65 sf/FSG (Lower
Tier C). Downtown ($2.32 sf/FSG), Southeast ($2.34 sf/FSG) and Southwest ($2.57 sf/FSG) submarkets show the highest lease rates,
while Central West ($1.75 sf/FSG), Northwest ($1.87 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.
OFFICE MARKET | 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.
C o m m e r C e C r G | t h i r d Q ua r t e r - 2 0 0 9 | o f f i c e m a r k e t r e v i e w

5. OFFICE MARKET | PERFORMANCE BY PRODUCT
TYPE & CLASSIFICATION
While broader market trends are clear, by providing basic break out LAS VEGAS
of the office product types, it is also important to understand the MARKET OVERVIEW
performance of detailed key sectors within the commercial office
market. At Commerce CRG, 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 CRG 3rd Quarter Market report which highlights market conditions by building type and
classification.
C o m m e r C e C r G | t h i r d Q ua r t e r - 2 0 0 9 | o f f i c e m a r k e t r e v i e w

6. commerce crG
Las Vegas office market report Q3 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 - - - - - 0.00% - - - -
Class Lta 1 126,915 - - 82,486 64.99% (1,668) - - -
Class ttB 91 2,693,758 - - 569,350 21.14% (52,050) 48,810 - 32,611 $1.00 $2.50 $1.78
Class LtB 16 569,428 - - 215,929 37.92% (53,703) 1,170 - 5,668 $1.95 $2.35 $2.15
Class ttC 49 1,105,129 - - 287,530 26.02% (98,732) 9,290 - 7,034 $1.00 $2.15 $1.54
Class LtC - - - - - 0.00% - - - -
total 157 4,495,230 - - 1,155,295 25.70% (206,153) 59,270 - 45,313 $1.00 $2.50 $1.87
Downtown
Class tta 3 655,254 - - 32,987 5.03% 15,835 15,835 - - $3.00 $3.00 $3.00
Class Lta 1 103,951 - - - 0.00% 1,611 1,611 - -
Class ttB - - - - - 0.00% - - - -
Class LtB 10 581,117 - - 144,652 24.89% (22,757) 12,500 - 20,260 $1.00 $2.85 $2.08
Class ttC 5 343,032 - - 23,936 6.98% (4,879) - - 1,997 $2.60 $2.60 $2.60
Class LtC 46 860,417 - - 66,142 7.69% 64,589 64,589 - - $1.95 $1.95 $1.95
total 65 2,543,771 - - 267,717 10.52% 54,399 94,535 - 22,257 $1.00 $3.00 $2.32
central east
Class tta 5 995,120 - - 76,396 7.68% 34,387 41,485 - 80,116 $3.65 $4.00 $3.25
Class Lta 5 387,590 - - 82,029 21.16% 16,016 18,016 - 8,938 $3.00 $3.65 $3.18
Class ttB - - - - - 0.00% - - - -
Class LtB 6 529,138 - - 162,029 30.62% (2,171) 638 - 21,626 $1.00 $1.85 $1.39
Class ttC 75 2,601,854 - - 479,958 18.45% 39,806 128,793 - 7,316 $1.00 $1.85 $1.35
Class LtC 58 1,273,364 - - 144,977 11.39% 23,687 37,327 - 4,500 $0.99 $1.70 $1.35
total 149 5,787,066 - - 945,389 16.34% 111,725 226,259 - 122,496 $0.99 $4.00 $1.73
central west
Class tta - - - - - 0.00% - - - -
Class Lta 1 157,624 - - 6,319 4.01% 165 165 - - $2.90 $2.90 $2.90
Class ttB - - - - - 0.00% - - - -
Class LtB 45 2,192,468 - - 292,820 13.36% (37,787) 21,825 - 41,003 $1.00 $2.25 $1.75
Class ttC 125 3,211,808 - - 500,367 15.58% 82,621 163,381 - 22,088 $1.25 $2.00 $1.56
Class LtC 52 780,205 - - 108,523 13.91% 7,921 40,135 - -
total 223 6,342,105 - - 908,029 14.32% 52,920 225,506 - 63,091 $1.00 $2.90 $1.75
west
Class tta 1 143,633 - - 32,025 22.30% - - - 25,530
Class Lta 3 293,255 - - 77,685 26.49% (21,608) - - - $1.95 $2.35 $2.22
Class ttB 11 760,501 - - 199,222 26.20% 30,711 60,707 - 20,178 $1.00 $2.70 $1.88
Class LtB 121 2,441,269 - - 275,225 11.27% (20,171) 35,295 - 46,122 $1.50 $2.25 $1.83
Class ttC 165 2,335,967 - - 479,981 20.55% 14,588 73,086 - 14,013 $2.50 $5.00 $3.75
Class LtC 11 245,699 - - 62,153 25.30% (9,772) 5,880 - -
total 312 6,220,324 - - 1,126,291 18.11% (6,252) 174,968 - 105,843 $1.00 $5.00 $2.09
Southwest
Class tta - - - - - 0.00% - - - -
Class Lta 2 336,140 - - 314,214 93.48% (40,000) - - - $2.70 $3.40 $3.09
Class ttB 27 1,442,608 - - 512,257 35.51% (11,542) 39,580 - 50,543 $2.40 $2.45 $2.40
Class LtB 102 1,797,248 - - 332,775 18.52% (38,342) 33,612 - 46,113 $1.91 $2.50 $2.21
Class ttC 68 1,000,379 - - 169,667 16.96% 7,123 35,517 - 21,365
Class LtC 6 113,662 - - 34,026 29.94% (8,800) - - 1,063
total 205 4,690,037 - - 1,362,939 29.06% (91,561) 108,709 - 119,084 $1.91 $3.40 $2.57
airport
Class tta - - - - - 0.00% - - - -
Class Lta 5 433,464 - - 184,495 42.56% (1,554) 2,376 - 82,637 $2.00 $2.85 $2.41
Class ttB 17 1,157,337 - - 276,958 23.93% (48,322) - - - $2.35 $3.55 $2.75
Class LtB 35 1,734,417 - - 291,807 16.82% 18,767 32,693 - 111,657 $1.35 $2.35 $1.94
Class ttC 154 1,912,330 - - 485,564 25.39% (32,549) 80,194 - 8,503 $1.25 $1.25 $1.25
Class LtC - - - - - 0.00% - - - -
total 211 5,237,548 - - 1,238,824 23.65% (63,658) 115,263 - 202,797 $1.25 $3.55 $2.29
Southeast
Class tta - - - - - 0.00% - - - -
Class Lta 4 323,132 - - 168,534 52.16% 2,295 3,403 - 11,307 $2.95 $2.95 $2.95
Class ttB 23 1,238,237 - - 342,343 27.65% 20,548 31,744 - 24,900 $2.95 $2.95 $2.95
Class LtB 40 1,220,033 - - 238,220 19.53% (58,488) 6,718 - - $1.69 $2.95 $2.32
Class ttC 311 4,195,599 - - 915,321 21.82% 21,796 143,463 - 31,539 $1.05 $2.00 $1.45
Class LtC - - - - - 0.00% - - - -
total 378 6,977,001 - - 1,664,418 23.86% (13,849) 185,328 - 67,746 $1.05 $2.95 $2.34
North
Class tta - - - - - 0.00% - - - -
Class Lta - - - - - 0.00% - - - -
Class ttB - - - - - 0.00% - - - -
Class LtB 4 133,918 - - 62,287 46.51% (1,660) 9,473 - -
Class ttC 70 1,431,706 - - 320,241 22.37% 11,657 63,267 - 18,351
Class LtC 19 316,522 - - 4,000 1.26% 2,218 2,218 - -
total 93 1,882,146 - - 386,528 20.54% 12,215 74,958 - 18,351
Las vegas total
Class tta 9 1,794,007 - - 141,408 7.88% 50,222 57,320 - 105,646 $3.00 $4.00 $3.13
Class Lta 22 2,162,071 - - 915,762 42.36% (44,743) 25,571 - 102,882 $1.95 $3.65 $2.79
Class ttB 169 7,292,441 - - 1,900,130 26.06% (60,655) 180,841 - 128,232 $1.00 $3.55 $2.35
Class LtB 379 11,199,036 - - 2,015,744 18.00% (216,312) 153,924 - 292,449 $1.00 $2.95 $1.96
Class ttC 1,022 18,137,804 - - 3,662,565 20.19% 41,431 696,991 - 132,206 $1.00 $5.00 $1.93
Class LtC 192 3,589,869 - - 419,821 11.69% 79,843 150,149 - 5,563 $0.99 $1.95 $1.65
total 1,793 44,175,228 - - 9,055,430 20.50% (150,214) 1,264,796 - 766,978 $0.99 $5.00 $2.12
C o m m e r C e C r G | t h i r d Q ua r t e r - 2 0 0 9 | o f f i c e m a r k e t r e v i e w

7. OFFICE MARKET | MEDICAL OFFICE MARKET
Las Vegas, Nevada | Commerce CRG
Third Quarter 2009
The medical sector of the office market continues to perform slightly
better than the balance of the market in 2009. Vacancies within LAS VEGAS
the segment increased this quarter from 14.1 Las Vegas, Nevada | Commerce CRG
percent second quarter MARKET OVERVIEW
Medical Office Market
2009 to 14.6 percent third quarter 2009. Third Quarter 2009
The medical sector of the office market continues to perform slightly better than the
balance of the market inOffice Market
Medical 2009. Vacancies within the segment dropped again this
quarter from 14.9 percent first quarter 2009 to 14.1 percent second quarter 2009.
The medical sector of the office market continues to perform slightly better than the
balance of the market in 2009. Vacancies within the segment dropped again this
quarter from 14.9 percent first quarter 2009 to 14.1 percent second quarter 2009.
Medical Office Submarket - Rates
$3.00
Medical Office Submarket - Rates
$2.50
$2.00 $3.00
$1.50 $2.50
$1.00 $2.00
$0.50 $1.50
$0.00 $1.00 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
$0.50
FSG Rate $1.65 $ 0.00 $1.73 $1.71 $ 0.00 $ 0.00 $ 0.00 $ 2.26 $ 0.00 $1.84
M G Rate $1.80 $ 0.00 $1.44 $1.67 $1.83 $ 2.05 $1.53 $1.53 $ 0.00 $1.69
NNN Rate
$0.001.55
$ $ 0.00 $1.34 $1.71 Central$ 1.54 $1.75 $1 .25 $1.67 $1 .39 $ 1 Las Vegas
.53
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 $1.71 $ 0.00 $ 0.00 $ 0.00 $ 2.26 $ 0.00 $1.84
M G Rate $1.80 $ 0.00 $1.44 $1.67 $1.83 $ 2.05 $1.53 $1.53 $ 0.00 $1.69
NNN Rate $1.55 $ 0.00 $1.34 $1.71 $1.54 $1.75 $1.25 $1.67 $1.39 $1.53
C o m m e r C e C r G | t h i r d Q ua r t e r - 2 0 0 9 | o f f i c e m a r k e t r e v i e w

8. LAS VEGAS | OFFICE SUBMARKET GRAPHS
Las Vegas, Nevada | Commerce CRG
Third Quarter 2009
Professional Office: Quarterly Vacancy
25%
0%
1%
%
.5
83
.1
20
20
.
19
20%
0%
8%
0%
.3
.9
.8
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
18
8.
8.
8.
5%
0%
5
5
6
6
6
6
7
7
7
8
7
8
8
8
9
9
9
20
30
40
10
20
30
30
40
10
30
40
10
20
30
40
10
20
Q
Q
Q
Q
Q
Q
Q
Q
Q
Q
Q
Q
Q
Q
Q
Q
Professional Office: Quarterly Absorption (SF) Q
1,500,000
1,000,000
500,000
-
(500,000)
(1,000,000)
5
5
6
6
6
6
7
7
7
7
8
8
8
8
9
9
9
30
40
10
20
30
30
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: 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
5
6
6
6
6
7
7
7
7
8
8
8
8
9
9
9
30
40
10
20
30
30
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
C o m m e r C e C r G | t h i r d Q ua r t e r - 2 0 0 9 | o f f i c e m a r k e t r e v i e w

9. LAS VEGAS | OFFICE SUBMARKET GRAPHS
Las Vegas, Nevada | Commerce CRG
Third Quarter 2009
Professional Office: Office Employment vs Vacancy Rate (%)
350,000 25%
325,000 20.50%
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
Las Vegas Professional Office Market Overview 1998-2009 YTD
10,000,000 22.00%
20.50%
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
44
12
14
15
17
,49
,02
,62
,75
,24
,19
,55
,17
,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
22
8
5
6
3
6
2
3
8
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 $2.08
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 $2.12
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Built Net Absorption
Vacant Inventory Vacancy
C o m m e r C e C r G | t h i r d Q ua r t e r - 2 0 0 9 | o f f i c e m a r k e t r e v i e w

10. Las Vegas, Nevada | Commerce CRG
LAS VEGAS | OFFICE SUBMARKET GRAPHS
Third Quarter 2009
Professional Office Submarket - Direct vs Sublease Vacancy
29.06%
30.00%
25.70%
25.00% 23.65% 23.86%
20.54% 20.50%
20.00% 1 1
8.1 %
16.34%
14.32%
15.00%
10.52%
10.00%
5.00% 3.87%
2.12% 2.54%
1.70% 1.74%
1 %
.01 0.87% 0.99% 0.97% 0.98%
0.00%
Central Central Las Vegas
Northwest Downtown West Southwest Airport Southeast North
East West Area Total
Vacacny % 25.70% 10.52% 16.34% 14.32% 18.11% 29.06% 23.65% 23.86% 20.54% 20.50%
Sublease % 1.01% 0.87% 2.12% 0.99% 1.70% 2.54% 3.87% 0.97% 0.98% 1.74%
Professional Office: Building Class
Class C
Class B
Class A
Class A Class B Class C
Sublease SF 208,528 420,681 137,769
Vacancy 1,057,170 3,915,874 4,082,386
Existing SF 3,956,078 18,491,477 21,727,673
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 $1.87 $2.32 $1.73 $1.75 $2.09 $2.57 $2.29 $2.34 $0.00 $2.12
MG Rate $1.81 $1.51 $1.25 $1.39 $1.65 $1.88 $1.67 $1.62 $2.16 $1.66
NNN Rate $1.53 $1.55 $1.12 $1.25 $1.48 $1.46 $1.29 $1.47 $1.11 $1.36
C o m m e r C e C r G | t h i r d Q ua r t e r - 2 0 0 9 | o f f i c e m a r k e t r e v i e w

11. GLOSSARy | MAjOR MARKET 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.
C o m m e r C e C r G | t h i r d Q ua r t e r - 2 0 0 9 | o f f i c e m a r k e t r e v i e w

12. LAS VEGAS | OFFICE SUBMARKET MAP
C o m m e r C e C r G | t h i r d Q ua r t e r - 2 0 0 9 | o f f i c e m a r k e t r e v i e w

13. COMMERCE CRG | FuLL SERVICE COMMERCIAL REAL ESTATE SOLuTIONS
Commerce CRG 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 CRG, 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 CRG 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*
C o m m e r C e C r G | t h i r d Q ua r t e r - 2 0 0 9 | o f f i c e m a r k e t r e v i e w