The office market in North America showed signs of stabilizing in Q2 2010. Vacancy rates rose slightly in both the US and Canada, but the increases were relatively small. Demand was mixed with the US seeing slightly positive absorption and Canada seeing more substantial growth. With economic growth in Q2 and continued labor market stabilization, office markets are expected to continue gradual improvement through mid-2011. The quarter affirmed the transition from dramatically rising vacancies and falling rents to more modest movements, with a possible reversal in coming quarters.

1. Q2 2010 | OFFiCE
nortH aMeriCa
HIGHLIGHTS
Office Markets Beginning to
Show Signs of ‘Bottoming Out’
ross J. Moore Chief Economist | USA
MarKet inDiCators
Relative to prior period Although the economy finished the quarter on a sluggish note, leasing activity remained relatively
robust through the April-June period, helping to stabilize market fundamentals after a prolonged
Q2 Q3
2010 2010* period of weakening. Both Canadian and U.S. vacancies rose during the quarter although the latest
increases were relatively muted. Demand was mixed, with U.S. markets only recording mildly positive
VaCanCY absorption while Canadian markets registered more substantial growth. With both the U.S. and
Canadian economies posting relatively robust growth in the second quarter and a further stabilization
net aBsorption
in the labor market, leasing markets are expected to continue improving, albeit only in small incre-
ConstrUCtion ments and not dramatically before mid-2011 at the earliest.
rental rate The second quarter reaffirms our view that the first half of 2010 was a period of transition from
dramatically rising vacancies and falling rents to more modest movements in both and a possible
*Projected
reversal in the coming quarters. Calling into question the idea of a swift recovery, however, is a no-
ticeable downshift in the economy and a still stubbornly high unemployment rate. More encouraging,
however is the six month long gain in private sector employment, suggesting the recent improvement
in office leasing activity may be sustainable beyond a quarter or two.
Usa oFFiCe MarKet
sUMMarY statistiCs, Q2 2010 U.s. office vacancy rate up again, but only marginally. The U.S. national office vacancy rate moved
slightly higher during the second quarter, moving just 2 basis points (100 basis points equals one
Vacancy Rate: 16.34%
continued on page 7
Change from Q1 2010: 0.02
U.s. oFFiCe MarKet Q2 2009 – Q2 2010
Absorption:
2.7 Million Square Feet 30 17% The “Great Recession”
Vacancy (%)
16 pushed the U.S. office
New Construction: 20 vacancy rate over 16%,
Million Square Feet
11.1 Million Square Feet 15
but now that vacancies
10
14 appear to have peaked,
Under Construction: 0 13 the question now
29.2 Million Square Feet becomes – what next?
-10
Asking Rents Per Square Foot
(Change from Q1 2010): -20
Downtown Class A: $38.53 (1.0%) -30
Suburban Class A: $26.24 (–1.3%) Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010
Absorption Completions Vacancy
WWW.Colliers.CoM

2. highlights | Q2 2010 | office | north AmericA
UniteD states | DoWntoWn oFFiCe | all inVentorY
eXistinG neW sUpplY neW sUpplY UnDer VaCanCY VaCanCY aBsorption aBsorption
inVentorY (sF) Q2 2010 YtD 2010 ConstrUCtion rate (%) rate (%) Q2 2010 YtD 2010
MarKet JUne 30, 2010 (sF) (sF) (sF) Mar. 31, 2010 JUne 30, 2010 (sF) (sF)
Atlanta, GA 57,263,000 0 753,000 0 15.4 15.3 38,000 (69,000)
Bakersfield, CA 2,932,000 0 0 0 7.7 6.9 25,000 11,000
Baltimore, MD 22,159,000 0 28,000 0 15.9 16.5 (97,000) (58,000)
Boise, ID 3,470,000 0 0 0 11.6 10.6 32,000 48,000
Boston, MA 58,000,000 0 0 1,594,000 14.7 15.5 (506,000) (1,150,000)
Charleston, SC 2,092,000 0 0 0 8.5 8.5 0 0
Charlotte, NC 22,099,000 750,000 2,050,000 0 11.4 14.9 (93,000) 133,000
Chicago, IL 131,254,000 0 679,000 0 17.5 17.2 433,000 5,000
Cincinnati, OH 11,920,000 0 0 805,000 17.7 18.3 (71,000) (107,000)
Cleveland 31,844,000 0 0 0 16.8 16.6 66,000 298,000
Columbia, SC 4,586,000 0 190,000 0 28.6 27.1 (67,000) (86,000)
Columbus, OH 13,318,000 0 0 0 14.9 15.3 119,000 76,000
Dallas/Fort Worth, TX 37,129,000 0 0 0 26.3 26.3 24,000 (239,000)
Denver, CO 25,706,000 0 0 0 15.2 14.9 23,000 50,000
Detroit, MI 30,239,000 0 0 0 18.0 17.7 (59,000) (567,000)
Fresno, CA 3,213,000 0 8,000 0 9.8 9.4 14,000 (2,000)
Ft. Lauderdale/Broward Co., FL 9,029,000 13,000 13,000 0 13.9 13.9 16,000 (73,000)
Greenville, SC 3,182,000 53,000 53,000 0 17.1 18.7 (50,000) (43,000)
Hartford, CT 9,735,000 0 0 180,000 17.2 19.2 (168,000) (202,000)
Honolulu, HI 8,081,000 0 0 0 11.2 11.8 (43,000) (93,000)
Houston, TX 37,899,000 0 0 1,817,000 13.7 13.8 (45,000) (276,000)
Jacksonville, FL 15,990,000 0 0 0 12.9 12.9 48,000 57,000
Kansas City, KS 26,481,000 0 0 0 15.2 15.0 (60,000) (56,000)
Las Vegas, NV 3,590,000 0 0 0 12.9 14.3 (40,000) (111,000)
Little Rock, AR 6,584,000 23,000 23,000 0 13.4 13.2 32,000 35,000
Los Angeles, CA 32,039,000 0 0 0 15.8 16.2 (118,000) (463,000)
Louisville, KY 16,783,000 0 0 0 9.4 9.1 (22,000) 19,000
Memphis, TN 8,195,000 0 0 0 14.2 14.1 7,000 (28,000)
Miami-Dade County, FL 17,158,000 752,000 1,335,000 606,000 18.8 22.4 4,000 89,000
Nashville, TN 30,741,000 284,000 474,000 55,000 14.8 14.4 207,000 400,000
New York, NY – Downtown Manhattan 84,633,000 0 2,000,000 2,600,000 14.1 17.0 (2,446,000) (3,808,000)
New York, NY – Midtown Manhattan 200,280,000 0 1,100,000 0 14.2 13.3 1,713,000 3,115,000
New York, NY – Midtown S. Manhattan 71,893,000 317,000 317,000 0 10.7 11.7 771,000 (160,000)
Oakland, CA 17,023,000 0 0 62,000 13.3 12.5 (52,000) (95,000)
Orlando, FL 11,876,000 0 0 389,000 15.0 14.5 51,000 62,000
Philadelphia, PA 41,436,000 0 0 0 12.7 12.6 22,000 (162,000)
Phoenix, AZ 19,873,000 0 760,000 0 19.6 20.5 (2,000) 23,000
Pleasanton/Walnut Creek, CA 22,335,000 0 0 0 22.1 23.0 (960,000) (1,059,000)
Portland, OR 33,054,000 369,000 369,000 62,000 9.1 8.7 (6,000) (104,000)
Raleigh/Durham/Chapel Hill, NC 10,767,000 0 0 165,000 6.4 5.7 64,000 100,000
Reno, NV 1,327,000 0 0 0 25.2 28.8 (48,000) (48,000)
Sacramento, CA 18,316,000 0 0 18,000 8.6 9.0 (72,000) (112,000)
San Diego County, CA 10,207,000 0 0 0 17.4 16.8 57,000 21,000
San Francisco, CA 83,224,000 0 110,000 210,000 14.8 15.2 (331,000) (286,000)
San Jose/Silicon Valley, CA 7,593,000 0 0 0 25.3 25.3 (50,000) (127,000)
Seattle/Puget Sound, WA 43,629,000 890,000 890,000 1,629,000 18.2 15.7 277,000 412,000
St. Louis, MO 25,622,000 0 0 0 15.2 15.3 25,000 38,000
Stamford, CT 18,548,000 0 0 400,000 17.6 17.6 7,000 (674,000)
Stockton/San Joaquin County, CA 8,500,000 0 0 0 18.8 18.1 37,000 94,000
Tampa, FL 9,372,000 0 14,000 0 15.8 15.2 59,000 97,000
Washington, DC 141,413,000 1,672,000 1,923,000 1,901,000 11.5 11.8 384,000 564,000
West Palm Beach/Palm Beach Co., FL 9,738,000 0 0 0 19.1 19.0 15,000 27,000
White Plains, NY 8,172,000 0 0 0 14.2 11.6 217,000 215,000
U.s. total/aVeraGe 1,581,543,000 5,123,000 13,089,000 12,494,000 14.87 15.01 (837,000) (4,483,000)
p. 2 | Colliers international

3. highlights | Q2 2010 | office | north AmericA
UniteD states | DoWntoWn oFFiCe | Class a
VaCanCY VaCanCY aVeraGe annUal QUarterlY annUal
eXistinG rate (%) rate (%) aBsorption aBsorption QUoteD rent CHanGe CHanGe
inVentorY (sF) Mar. 31, JUne 30, Q2 2010 YtD 2010 (UsD psF) in rent in rent
MarKet JUne 30, 2010 2010 2010 (sF) (sF) JUne 30, 2010 (%) (%)
Atlanta, GA 31,558,000 20.3 19.8 150,000 164,000 21.30 (0.79) (2.65)
Bakersfield, CA 670,000 6.1 6.0 1,000 16,000 17.40 0.00 0.00
Baltimore, MD 9,799,000 17.6 18.1 (49,000) (31,000) 24.20 (0.94) (3.31)
Boise, ID 2,038,000 5.5 5.2 5,000 15,000 18.00 0.00 (12.20)
Boston, MA 39,370,000 13.2 14.0 (297,000) (523,000) 45.50 (2.65) (9.11)
Charleston, SC 1,059,000 7.4 7.4 0 0 24.20 1.47 (16.45)
Charlotte, NC 15,592,000 13.3 18.1 (95,000) 140,000 26.50 (2.96) (12.52)
Chicago, IL 73,943,000 18.3 18.1 124,000 98,000 32.00 0.00 (9.86)
Cincinnati, OH 5,996,000 18.3 18.9 (36,000) (41,000) 21.90 0.37 (6.90)
Cleveland 8,928,000 12.7 12.4 28,000 26,000 20.70 (0.10) (1.53)
Columbia, SC 2,250,000 18.0 14.0 90,000 (39,000) 19.70 2.39 (0.46)
Columbus, OH 5,600,000 16.2 15.0 (4,000) 70,000 20.50 (0.53) (11.18)
Dallas/Fort Worth, TX 22,606,000 23.2 23.3 (13,000) (242,000) 25.30 (0.39) (0.98)
Denver, CO 18,097,000 15.1 15.1 (78,000) 72,000 26.50 (1.85) (5.36)
Detroit, MI 11,563,000 18.1 18.0 (21,000) (338,000) 22.60 (0.62) (0.13)
Fresno, CA 1,039,000 8.8 8.7 1,000 11,000 24.60 0.00 (2.38)
Ft. Lauderdale/Broward Co., FL 4,479,000 20.3 20.6 (13,000) (56,000) 32.80 0.28 2.50
Greenville, SC 1,897,000 13.6 9.8 (5,000) (5,000) 20.50 0.94 (5.01)
Hartford, CT 6,398,000 18.1 20.2 (140,000) (165,000) 23.30 (0.51) (0.94)
Honolulu, HI 4,717,000 12.2 12.7 (25,000) (73,000) 35.90 1.24 (1.56)
Houston, TX 27,806,000 8.9 9.0 (25,000) (242,000) 35.90 0.82 (7.53)
Jacksonville, FL 6,659,000 16.2 16.0 18,000 (5,000) 20.00 (1.04) (4.71)
Kansas City, KS 7,933,000 22.4 22.4 42,000 53,000 20.90 1.60 3.87
Las Vegas, NV 700,000 7.3 11.1 (15,000) (26,000) 34.90 2.95 (11.10)
Little Rock, AR 2,636,000 12.7 12.6 23,000 (31,000) 16.50 0.00 0.92
Los Angeles, CA 15,084,000 14.5 15.1 (86,000) (450,000) 38.90 0.00 (2.41)
Louisville, KY 3,924,000 8.4 8.2 (22,000) (6,000) 22.20 (3.35) 5.42
Memphis, TN 1,901,000 23.2 23.0 4,000 1,000 17.10 0.12 1.25
Miami-Dade County, FL 9,144,000 18.8 25.3 22,000 63,000 42.00 (0.66) (3.36)
Nashville, TN 3,810,000 25.6 24.7 (6,000) 57,000 26.00 15.78 16.88
New York, NY – Downtown Manhattan 58,670,000 16.5 15.4 893,000 1,566,000 39.80 0.18 (18.07)
New York, NY – Midtown Manhattan 161,280,000 16.5 15.3 1,792,000 3,044,000 62.80 (1.63) (9.89)
New York, NY – Midtown S. Manhattan 29,954,000 16.9 14.0 1,118,000 1,362,000 42.40 2.89 (17.23)
Oakland, CA 10,198,000 10.4 10.3 8,000 (44,000) 31.00 1.18 (9.47)
Orlando, FL 5,583,000 18.2 17.0 68,000 21,000 24.40 (0.61) (11.93)
Philadelphia, PA 31,558,000 11.5 11.4 18,000 (127,000) 26.10 0.12 1.48
Phoenix, AZ 10,146,000 19.0 21.4 (41,000) 99,000 25.50 (5.17) (11.50)
Pleasanton/Walnut Creek, CA 13,047,000 21.7 22.3 (539,000) (586,000) 26.30 3.34 (3.10)
Portland, OR 12,898,000 7.5 8.1 (90,000) (124,000) 24.20 (0.82) (3.59)
Raleigh/Durham/Chapel Hill, NC 4,414,000 8.3 6.6 54,000 54,000 22.80 (4.28) 0.62
Reno, NV 548,000 20.2 23.5 (18,000) (32,000) 23.50 (2.00) 5.95
Sacramento, CA 8,910,000 9.5 10.1 (45,000) (60,000) 33.00 (3.17) (3.51)
San Diego County, CA 6,977,000 16.5 16.0 38,000 30,000 29.90 (1.58) (10.75)
San Francisco, CA 52,123,000 14.5 15.2 (392,000) (299,000) 33.30 1.80 (2.54)
San Jose/Silicon Valley, CA 3,365,000 34.2 35.1 (35,000) (84,000) 35.40 (2.99) (5.75)
Seattle/Puget Sound, WA 27,738,000 19.9 15.7 366,000 536,000 27.60 3.80 (13.99)
St. Louis, MO 11,831,000 14.2 13.7 55,000 153,000 19.30 (0.36) (6.03)
Stamford, CT 12,506,000 18.9 18.7 30,000 (592,000) 37.00 0.00
Stockton/San Joaquin County, CA 2,722,000 29.3 27.5 49,000 146,000 20.60 (4.63) 5.32
Tampa, FL 4,809,000 20.0 19.3 35,000 55,000 22.80 0.09 7.30
Washington, DC 84,508,000 14.8 14.9 1,491,000 1,882,000 51.30 0.43 3.26
West Palm Beach/Palm Beach Co., FL 3,310,000 22.5 23.1 (21,000) (9,000) 37.50 (2.27)
White Plains, NY 5,402,000 18.3 14.2 221,000 223,000 29.20 0.00 (24.02)
U.s. total/aVeraGe 909,695,000 16.12 15.82 4,635,000 5,727,000 38.50 weighted 1.03 (6.36)
28.40 equal (0.16) (4.50)
Colliers international | p. 3

4. highlights | Q2 2010 | office | north AmericA
UniteD states | sUBUrBan oFFiCe | all inVentorY
eXistinG neW sUpplY neW sUpplY UnDer VaCanCY VaCanCY aBsorption aBsorption
inVentorY (sF) Q2 2010 YtD 2010 ConstrUCtion rate (%) rate (%) Q2 2010 YtD 2010
MarKet JUne 30, 2010 (sF) (sF) (sF) Mar. 31, 2010 JUne 30, 2010 (sF) (sF)
Atlanta, GA 189,692,000 0 952,000 235,000 18.0 17.9 147,000 (41,000)
Bakersfield, CA 5,968,000 0 39,000 0 10.3 10.0 17,000 95,000
Baltimore, MD 102,584,000 419,000 558,000 1,371,000 12.5 12.8 159,000 584,000
Boise, ID 10,528,000 0 0 134,000 20.3 20.7 (35,000) (75,000)
Boston, MA 102,774,000 0 0 356,000 19.7 19.5 333,000 422,000
Charleston, SC 8,497,000 563,000 563,000 0 22.1 20.4 578,000 578,000
Charlotte, NC 70,145,000 19,000 55,000 342,000 14.9 15.3 (94,000) 7,000
Chicago, IL 105,448,000 119,000 204,000 110,000 24.2 24.1 288,000 (83,000)
Cincinnati, OH 25,078,000 0 202,000 35,000 24.9 24.7 65,000 (168,000)
Cleveland 73,329,000 22,000 22,000 16,000 11.0 10.7 71,000 89,000
Columbia, SC 4,782,000 0 0 0 20.2 21.3 (49,000) (94,000)
Columbus, OH 35,516,000 0 0 90,000 17.9 17.2 267,000 114,000
Dallas/Fort Worth, TX 265,976,000 509,000 1,572,000 1,499,000 17.6 17.7 (6,000) (588,000)
Denver, CO 128,681,000 516,000 529,000 0 15.1 15.0 443,000 (353,000)
Detroit, MI 99,616,000 16,000 16,000 159,000 20.4 20.9 (127,000) (54,000)
Fairfield, CA 3,521,000 0 0 0 26.6 26.8 (6,000) (99,000)
Fairfield County, CT 59,071,000 0 0 420,000 12.6 12.6 (16,000) (827,000)
Fresno, CA 17,768,000 5,000 132,000 0 15.2 15.7 (74,000) (14,000)
Ft. Lauderdale/Broward Co., FL 44,311,000 0 183,000 0 14.9 15.1 (85,000) 120,000
Greenville, SC 4,335,000 0 0 0 21.5 21.3 2,000 53,000
Hartford, CT 12,357,000 0 0 14,000 16.3 15.3 106,000 (62,000)
Honolulu, HI 7,690,000 0 0 0 10.7 11.0 (33,000) (74,000)
Houston, TX 157,940,000 34,000 34,000 417,000 16.9 17.1 (271,000) 159,000
Jacksonville, FL 42,256,000 34,000 34,000 138,000 16.5 16.1 251,000 354,000
Kansas City, KS 77,817,000 0 4,000 71,000 13.3 12.9 20,000 (8,000)
Las Vegas, NV 38,360,000 0 88,000 213,000 25.1 25.7 (363,000) (402,000)
Little Rock, AR 7,433,000 (28,000) (9,000) 22,000 10.4 10.3 33,000 (180,000)
Los Angeles – Inland Empire, CA 21,938,000 0 41,000 0 24.3 24.7 (57,000) (35,000)
Los Angeles, CA 165,877,000 362,000 518,000 781,000 17.0 17.7 (779,000) (1,731,000)
Louisville, KY 49,788,000 0 0 174,000 11.7 11.8 (442,000) (261,000)
Memphis, TN 27,896,000 0 0 0 13.5 13.0 141,000 96,000
Miami-Dade County, FL 64,745,000 0 160,000 464,000 15.1 14.8 185,000 247,000
Nashville, TN 23,180,000 284,000 474,000 55,000 12.0 11.5 201,000 332,000
New Jersey – Central 66,074,000 46,000 46,000 255,000 22.4 22.2 90,000 (628,000)
New Jersey – Northern 96,214,000 0 0 58,000 17.8 17.7 3,000 117,000
Oakland, CA 15,877,000 0 0 0 17.4 17.1 57,000 59,000
Orange County, CA 77,351,000 0 0 0 23.2 23.6 (456,000) (1,464,000)
Orlando, FL 54,217,000 0 53,000 695,000 17.5 17.5 (8,000) (221,000)
Philadelphia, PA 108,875,000 155,000 155,000 1,051,000 16.1 16.3 8,000 227,000
Phoenix, AZ 109,276,000 428,000 428,000 545,000 23.2 21.2 251,000 56,000
Pleasanton/Walnut Creek, CA 17,912,000 160,000 160,000 0 18.1 14.8 569,000 499,000
Portland, OR 44,861,000 0 14,000 0 12.8 13.0 (111,000) (90,000)
Raleigh/Durham/Chapel Hill, NC 70,787,000 162,000 238,000 206,000 15.1 15.0 132,000 (112,000)
Reno, NV 5,441,000 0 0 7,000 20.7 20.5 9,000 (3,000)
Sacramento, CA 71,563,000 40,000 187,000 350,000 18.5 18.4 65,000 (52,000)
San Diego County, CA 67,628,000 53,000 290,000 0 17.7 17.9 112,000 482,000
San Francisco Peninsula, CA 33,518,000 25,000 25,000 0 18.8 18.4 151,000 73,000
San Jose/Silicon Valley, CA 53,499,000 343,000 343,000 917,000 20.0 19.1 533,000 302,000
Seattle/Puget Sound, WA 63,643,000 473,000 473,000 876,000 17.2 16.3 125,000 (75,000)
St. Louis, MO 96,178,000 54,000 66,000 785,000 10.8 10.9 (171,000) 161,000
Tampa, FL 71,429,000 0 0 0 16.4 16.6 (82,000) (405,000)
Washington, DC 307,320,000 1,131,000 2,852,000 3,673,000 14.4 14.6 1,098,000 2,049,000
West Palm Beach/Palm Beach Co., FL 28,942,000 11,000 51,000 198,000 21.9 21.8 29,000 79,000
Westchester County, NY 45,840,000 0 0 0 11.1 10.7 218,000 144,000
U.s. total/aVeraGe 3,561,344,000 5,954,000 11,751,000 16,735,000 16.96 16.94 3,493,000 (706,000)
p. 4 | Colliers international

5. highlights | Q2 2010 | office | north AmericA
UniteD states | sUBUrBan oFFiCe | Class a
VaCanCY VaCanCY aVeraGe annUal QUarterlY annUal
eXistinG rate (%) rate (%) aBsorption aBsorption QUoteD rent CHanGe CHanGe
inVentorY (sF) Mar. 31, JUne 30, Q2 2010 YtD 2010 (UsD psF) in rent in rent
MarKet JUne 30, 2010 2010 2010 (sF) (sF) JUne 30, 2010 (%) (%)
Atlanta, GA 80,939,000 19.3 19.5 (151,000) (197,000) 21.80 (0.32) (2.72)
Bakersfield, CA 2,691,000 6.2 5.7 12,000 65,000 24.00 0.00 0.00
Baltimore, MD 31,687,000 18.7 18.6 216,000 442,000 26.30 7.70 (0.19)
Boise, ID 4,564,000 21.9 22.0 (3,000) (1,000) 18.00 (1.37) (1.59)
Boston, MA 43,688,000 19.8 18.7 495,000 647,000 26.40 0.69 (12.29)
Charleston, SC 4,333,000 17.8 15.8 411,000 434,000 24.20 7.42 (8.79)
Charlotte, NC 18,114,000 20.4 18.9 (99,000) 125,000 20.40 1.14 2.31
Chicago, IL 57,236,000 25.2 25.4 15,000 (195,000) 27.50 (0.36) (1.11)
Cincinnati, OH 13,378,000 24.6 24.3 38,000 (169,000) 20.50 (0.05) (3.12)
Cleveland 12,241,000 12.1 12.4 (35,000) (46,000) 22.00 1.20 3.48
Columbia, SC 996,000 20.3 20.9 (6,000) 17,000 17.00 (2.97) (5.52)
Columbus, OH 11,565,000 14.9 15.2 (2,000) (161,000) 18.70 0.11 (3.86)
Dallas/Fort Worth, TX 96,196,000 19.2 19.1 430,000 (347,000) 24.80 (0.40) (2.94)
Denver, CO 42,126,000 19.7 19.6 334,000 60,000 20.80 0.00 (5.68)
Detroit, MI 25,694,000 17.7 17.5 (57,000) (1,000) 22.40 (0.09) (3.82)
Fairfield, CA 1,948,000 30.0 28.4 31,000 (29,000) 27.10 3.20 7.11
Fairfield County, CT 29,479,000 12.1 14.0 70,000 (611,000) 31.00 (2.70)
Fresno, CA 3,810,000 23.7 24.2 (10,000) 70,000 25.20 0.00 (2.33)
Ft. Lauderdale/Broward Co., FL 10,467,000 19.8 21.0 (127,000) (40,000) 28.20 (0.81) 0.61
Greenville, SC 1,772,000 21.4 21.7 (11,000) (5,000) 17.80 0.00 (4.67)
Hartford, CT 7,479,000 17.7 16.8 61,000 (106,000) 20.40 0.20 (2.62)
Houston, TX 68,602,000 19.0 19.6 (444,000) (138,000) 27.40 (1.90) (0.87)
Jacksonville, FL 9,720,000 16.8 16.3 127,000 147,000 20.40 0.89 (3.05)
Kansas City, KS 15,460,000 17.9 18.0 (11,000) (4,000) 21.50 (4.62) (3.50)
Las Vegas, NV 4,918,000 38.2 36.7 1,000 0 32.90 (2.35) (7.46)
Little Rock, AR 2,643,000 15.7 16.1 (14,000) (196,000) 18.50 0.00 1.53
Los Angeles – Inland Empire, CA 4,953,000 34.7 33.5 61,000 441,000 26.00 (4.41) (4.82)
Los Angeles, CA 100,895,000 16.9 17.8 (573,000) (1,290,000) 38.40 8.84 6.31
Louisville, KY 10,855,000 11.2 14.4 (46,000) (43,000) 20.00 4.43 13.56
Memphis, TN 7,132,000 9.9 8.6 90,000 26,000 21.30 (4.10) (1.98)
Miami-Dade County, FL 15,199,000 22.1 21.7 62,000 64,000 32.90 2.68 (0.63)
Nashville, TN 12,802,000 10.1 9.2 201,000 271,000 22.30 7.11 2.91
New Jersey – Central 46,977,000 24.4 24.3 4,000 (761,000) 23.90 (7.11) (9.43)
New Jersey – Northern 63,713,000 17.2 17.7 (281,000) (76,000) 24.40 (0.41) (14.26)
Oakland, CA 3,582,000 18.4 19.5 11,000 (66,000) 28.40 (0.84) (10.57)
Orange County, CA 33,319,000 25.1 25.5 (150,000) (551,000) 27.40 (2.15) (12.31)
Orlando, FL 16,387,000 20.5 20.8 (45,000) (281,000) 22.80 (0.74) (3.39)
Philadelphia, PA 67,296,000 15.5 15.7 6,000 98,000 24.30 (0.61) (2.84)
Phoenix, AZ 38,309,000 24.1 23.1 104,000 162,000 24.60 (2.45) (8.20)
Pleasanton/Walnut Creek, CA 2,808,000 21.1 20.8 133,000 66,000 25.20 11.11 8.81
Portland, OR 12,553,000 12.8 12.3 (10,000) (122,000) 23.20 1.58 (1.99)
Raleigh/Durham/Chapel Hill, NC 25,607,000 19.2 18.2 114,000 113,000 21.50 0.75 (3.33)
Reno, NV 2,916,000 19.9 19.2 21,000 63,000 20.00 (2.34) (7.22)
Sacramento, CA 16,051,000 24.3 25.0 (113,000) (105,000) 24.70 0.00 (4.19)
San Diego County, CA 24,337,000 21.3 20.8 222,000 534,000 32.60 (1.81) (10.23)
San Francisco Peninsula, CA 21,785,000 18.2 17.9 76,000 105,000 31.90 (2.56) (8.28)
San Jose/Silicon Valley, CA 25,314,000 23.0 22.2 456,000 740,000 35.90 (0.36) (6.27)
Seattle/Puget Sound, WA 21,943,000 19.0 20.6 18,000 (95,000) 26.50 2.95 (5.32)
St. Louis, MO 24,762,000 11.2 11.4 (67,000) (150,000) 23.40 0.82 (6.44)
Tampa, FL 23,470,000 17.4 17.9 (130,000) (103,000) 23.80 0.00 (5.03)
Washington, DC 161,273,000 16.8 16.2 360,000 504,000 30.70 0.36 1.62
West Palm Beach/Palm Beach Co., FL 9,258,000 21.1 21.2 (8,000) 88,000 30.60 0.33 (1.16)
Westchester County, NY 23,505,000 14.0 13.5 188,000 97,000 27.50 1.82
U.s. total/aVeraGe 1,418,744,000 18.79 18.80 1,978,000 (513,000) 26.20 weighted (1.31) (4.12)
24.90 equal 1.03 (3.30)
Colliers international | p. 5

6. highlights | Q2 2010 | office | north AmericA
CanaDa | DoWntoWn oFFiCe | all inVentorY
eXistinG neW sUpplY neW sUpplY UnDer VaCanCY VaCanCY aBsorption aBsorption
inVentorY (sF) Q2 2010 YtD 2010 ConstrUCtion rate (%) rate (%) Q2 2010 YtD 2010
MarKet JUne 30, 2010 (sF) (sF) (sF) Mar. 31, 2010 JUne 30, 2010 (sF) (sF)
Calgary, AB 37,775,000 1,292,000 2,511,000 2,982,000 12.7 15.2 177,000 643,000
Edmonton, AB 10,632,000 0 0 630,000 6.8 7.2 (44,000) (41,000)
Halifax, NS 4,913,000 0 22,000 10,000 5.1 5.9 (41,000) (68,000)
Kitchener-Waterloo, ON 2,040,000 0 12,000 126,000 17.1 14.2 58,000 71,000
Montreal, QC 49,429,000 0 0 0 6.9 6.7 100,000 171,000
Ottawa, ON 14,966,000 0 0 1,000 3.7 4.2 (73,000) (44,000)
Regina, SK 3,762,000 0 0 0 1.4 1.5 (4,000) (9,000)
Saskatoon, SK 2,009,000 0 0 34,000 6.0 4.6 27,000 31,000
Toronto, ON 88,671,000 461,000 662,000 641,000 5.5 5.4 217,000 132,000
Vancouver, BC 24,466,000 0 0 136,000 4.5 3.8 177,000 201,000
Victoria, BC 4,686,000 9,000 9,000 229,000 4.0 6.9 (90,000) (90,000)
CanaDa total/aVeraGe 243,349,000 1,762,000 3,216,000 4,789,000 6.73 7.10 505,000 997,000
CanaDa | DoWntoWn oFFiCe | Class a
VaCanCY VaCanCY aVeraGe annUal QUarterlY annUal
eXistinG rate (%) rate (%) aBsorption aBsorption QUoteD rent CHanGe CHanGe
inVentorY (sF) Mar. 31, JUne 30, Q2 2010 YtD 2010 (CaD psF) in rent in rent
MarKet JUne 30, 2010 2010 2010 (sF) (sF) JUne 30, 2010 (%) (%)
Calgary, AB 24,783,000 11.2 14.4 133,000 987,000 39.50 (2.47) (17.71)
Edmonton, AB 8,254,000 6.0 6.7 (57,000) (73,000) 41.10 (1.39) (12.18)
Halifax, NS 1,916,000 4.2 5.4 (23,000) (39,000) 31.60 (0.91) 0.32
Kitchener-Waterloo, ON 642,000 14.2 9.9 28,000 50,000 26.70 (3.58) (2.34)
Montreal, QC 23,076,000 7.1 7.0 23,000 28,000 32.00 0.00 2.96
Ottawa, ON 9,001,000 3.7 4.5 (73,000) (58,000) 48.50 0.46 0.02
Regina, SK 1,026,000 0.7 1.0 (3,000) (11,000) 34.80 0.00 0.00
Saskatoon, SK 492,000 7.5 0.3 35,000 34,000 31.50 0.00 5.00
Toronto, ON 41,637,000 7.0 7.1 127,000 (90,000) 53.50 5.19 (0.07)
Vancouver, BC 10,034,000 3.2 2.5 72,000 72,000 52.00 6.12 18.18
Victoria, BC 597,000 4.7 8.6 (17,000) (17,000) 37.00 0.00
CanaDa total/aVeraGe 121,457,000 7.16 7.88 245,000 884,000 44.40 weighted 2.56 (2.14)
38.90 equal 0.28 (1.01)
CanaDa | sUBUrBan oFFiCe | all inVentorY
eXistinG neW sUpplY neW sUpplY UnDer VaCanCY VaCanCY aBsorption aBsorption
inVentorY (sF) Q2 2010 YtD 2010 ConstrUCtion rate (%) rate (%) Q2 2010 YtD 2010
MarKet JUne 30, 2010 (sF) (sF) (sF) Mar. 31, 2010 JUne 30, 2010 (sF) (sF)
Calgary, AB 17,526,000 186,000 186,000 55,000 11.3 11.4 139,000 141,000
Edmonton, AB 8,721,000 0 0 40,000 16.0 15.3 73,000 (149,000)
Halifax, NS 6,143,000 60,000 109,000 80,000 14.1 13.9 (36,000) (11,000)
Kitchener-Waterloo, ON 2,653,000 0 0 272,000 11.2 10.5 20,000 63,000
Montreal, QC 23,430,000 0 0 492,000 9.0 9.0 1,000 35,000
Ottawa, ON 19,721,000 0 0 182,000 8.1 7.5 124,000 269,000
Regina, SK 533,000 0 0 0 0.5 0.7 (1,000) (3,000)
Toronto, ON 97,365,000 108,000 920,000 238,000 7.6 7.7 260,000 559,000
Vancouver, BC 28,520,000 0 294,000 544,000 10.3 10.0 63,000 86,000
Victoria, BC 3,525,000 60,000 60,000 33,000 5.1 6.7 3,000 3,000
CanaDa total/aVeraGe 208,137,000 414,000 1,570,000 1,936,000 9.00 8.93 646,000 995,000
CanaDa | sUBUrBan oFFiCe | Class a
VaCanCY VaCanCY aVeraGe annUal QUarterlY annUal
eXistinG rate (%) rate (%) aBsorption aBsorption QUoteD rent CHanGe CHanGe
inVentorY (sF) Mar. 31, JUne 30, Q2 2010 YtD 2010 (CaD psF) in rent in rent
MarKet JUne 30, 2010 2010 2010 (sF) (sF) JUne 30, 2010 (%) (%)
Calgary, AB 8,409,000 10.4 11.2 99,000 143,000 32.00 (13.51) (7.91)
Edmonton, AB 4,676,000 17.3 15.7 92,000 5,000 31.10 (2.05) (0.58)
Halifax, NS 2,555,000 17.7 16.2 38,000 28,000 26.70 2.22 (1.84)
Kitchener-Waterloo, ON 1,191,000 11.2 10.2 12,000 34,000 26.70 0.15 4.78
Montreal, QC 13,035,000 7.7 7.7 0 (23,000) 24.00 0.00 (3.42)
Ottawa, ON 11,465,000 10.2 8.2 227,000 262,000 31.00 (4.29) 3.23
Regina, SK 533,000 0.5 0.7 (1,000) (3,000) 24.50 0.00 (12.50)
Toronto, ON 42,724,000 7.9 7.8 190,000 372,000 31.20 8.71 4.84
Vancouver, BC 13,383,000 13.4 12.7 96,000 105,000 27.00 (1.82) (12.90)
Victoria, BC 769,000 1.3 3.3 44,000 44,000 31.50 (4.55)
CanaDa total/aVeraGe 98,742,000 9.77 9.31 797,000 968,000 29.50 weighted 1.57 (0.65)
28.60 equal (0.58) (3.27)
p. 6 | Colliers international

7. highlights | Q2 2010 | office | north AmericA
UniteD states | oFFiCe inVestMent Office Markets Beginning to
CBD CBD sUBUrBan sUBUrBan
Show Signs of ‘Bottoming Out’
sales priCe Cap rate sales priCe Cap rate
MarKet (UsD psF) (%) (UsD psF) (%) Continued from page 1
Atlanta, GA 180.00 8.50 140.00 9.10 percent) higher. This marked the eleventh consecutive
Boston, MA 484.00 6.50 163.00 7.70
quarterly increase, which left the overall vacancy rate at
Charleston, SC 250.00 8.00 135.00 11.00
16.34 percent at the end of the quarter and possibly
Chicago, IL 200.00 7.50 112.00 8.20
Cincinnati, OH – – 153.50 9.20
marking a cyclical high. U.S. office vacancies are now
Cleveland 115.00 10.00 115.00 9.50 back to levels last recorded during the first quarter of
Dallas/Fort Worth, TX – – 90.00 9.00 2004. During Q2 the Downtown vacancy rate increased
Denver, CO 195.00 8.00 153.00 9.00 14 basis points to register 15.01 percent while suburban
Fairfield County, CT 350.00 8.00 250.00 8.00 vacancies decreased 3 basis points to total 16.94 per-
Fresno, CA 170.00 9.00 192.50 8.50 cent. Canadian vacancy rates were mixed with central
Ft. Lauderdale/Broward Co., FL – – 221.00 – business district (CBD) vacancies rising 37 basis points
Hartford, CT – – 107.00 8.40 to 7.10 percent while suburban vacancies decreased 7
Honolulu, HI 242.00 – – – basis points to 8.93 percent.
Houston, TX 127.00 9.00 90.00 9.00
Jacksonville, FL 110.00 9.00 130.00 9.00
office tenants are back to leasing space, although
Las Vegas, NV 68.54 7.50 57.59 –
barely enough to register. After nine consecutive quar-
Little Rock, AR 88.00 9.25 110.00 9.00
Los Angeles, CA 300.00 7.00 250.00 9.00 ters of negative absorption, the U.S. office market regis-
Miami-Dade County, FL 210.00 – 216.00 8.00 tered a slight increase in occupied space. Second quarter
Nashville, TN – 7.00 – 7.00 absorption came in at 2.7 MSF (million square feet). This
New York, NY – Downtown Manhattan 550.00 6.00 – – was a significant improvement from a year ago, when
New York, NY – Midtown Manhattan 424.00 6.50 – – 25.1 MSF was returned to the market, and up from the
New York, NY – Midtown S. Manhattan 400.00 6.00 – – first quarter when occupied space contracted by 5.1
Oakland, CA 55.65 8.00 106.30 9.00 MSF. While it is becoming increasingly clear most com-
Orange County, CA – – 160.00 8.00 panies have finished disposing of excess space, there is
Orlando, FL – – 166.00 8.80
little evidence to suggest many will be expanding any
Philadelphia, PA 85.00 9.00 126.00 9.00
time soon. Canadian markets also recorded an increase
Phoenix, AZ – – 99.79 –
in occupied space during the quarter with absorption
Pleasanton/Walnut Creek, CA 160.00 9.00 132.00 10.00
Portland, OR 88.70 – 159.39 –
totaling 1.2 MSF.
Sacramento, CA 225.00 8.50 155.00 8.80
San Diego County, CA – – 117.90 – office rents mixed, CBD up, suburban down. After al-
San Francisco Peninsula, CA – – 250.00 6.50 most two years of falling lease rates, CBD rents managed
San Francisco, CA 356.00 6.75 – – to eke out a small increase during the quarter, rising by
Seattle/Puget Sound, WA 225.00 – – – 1.0%. Suburban rents, however, extended their down-
Stockton/San Joaquin County, CA 130.00 9.00 – – ward path, falling by 1.3%. Downtown Class A lease rates
Tampa, FL – – 131.50 9.00 finished the quarter at $38.53 per square foot while sub-
Washington, DC 586.00 7.10 289.00 8.20 urban asking rents registered $26.24 per square foot.
West Palm Beach/Palm Beach Co., FL – – 112.00 –
Year-over-year CBD rents were down 6.4% while subur-
Westchester County, NY 350.00 8.00 250.00 8.00
ban rents were down 4.1%. Office rents in Canada moved
higher during the quarter with CBD quoted rents in-
CanaDa | oFFiCe inVestMent creasing 2.6% and suburban rents up 1.6%.
CBD CBD sUBUrBan sUBUrBan
sales priCe Cap rate sales priCe Cap rate office development resumed downward trend. Second
MarKet (CaD psF) (%) (CaD psF) (%) quarter office completions totaled 11.1 MSF, a modest drop
Calgary, AB 335.00 6.63 330.00 7.38 from the first quarter when construction totaled 13.4 MSF,
Edmonton, AB 344.57 7.58 – –
and down from a year ago when 16.3 MSF was completed.
Halifax, NS – – 98.90 8.50
Construction activity continued to decline with Q2 devel-
Kitchener-Waterloo, ON 160.00 8.00 110.00 7.75
Montreal, QC 275.00 7.25 175.00 8.00
opment under construction falling to just 29.2 MSF, com-
Ottawa, ON – 7.75 150.00 8.00 pared with 31.2 MSF at the end of the quarter first quarter
Regina, SK 140.00 8.00 – – and well below the 120 MSF underway at midyear 2008.
Saskatoon, SK 175.00 8.20 – – Construction is expected to dwindle as the year progress-
Toronto, ON 379.04 6.60 230.00 8.00 es and with the exception of just a few build-to-suits, new
Vancouver, BC 450.00 6.00 325.00 7.50 office development will be largely absent from the U.S.
Victoria, BC 325.00 6.50 290.00 7.00 office landscape by year-end.
Colliers international | p. 7

8. highlights | Q2 2010 | office | north AmericA
480 offices in
61 countries on
6 continents
United States: 135
Canada: 39
Latin America: 17
Asia Pacific: 194
EMEA: 95
• $1.9 billion in annual revenue
• 2.4 billion square feet under
management
• over 15,000 professionals
Colliers international
601 Union Street, Suite 5300
Seattle, WA 98101
tel +1 206 223 0866
FaX +1 206 757 9427
For More inForMation
Ross J. Moore
Chief Economist | USA
tel +1 617 722 0221
eMail ross.moore@colliers.com
Glossary Copyright © 2010 Colliers International.
The information contained herein has been obtained
from sources deemed reliable. While every reasonable
effort has been made to ensure its accuracy, we cannot
inventory – Includes all existing multi- or annual Quoted rent – Includes all costs guarantee it. No responsibility is assumed for any
single-tenant leased and owner-occupied office associated with occupying a full floor in the inaccuracies. Readers are encouraged to consult their
professional advisors prior to acting on any of the
properties greater than or equal to 10,000 mid-rise portion of a Class A building inclusive material contained in this report.
square feet (net rentable area). In some larger of taxes, insurance, maintenance, janitorial and
markets this minimum size threshold may vary utilities (electricity surcharges added where
up to 50,000 square feet. Does not include applicable). All office rents in this report are
medical or government buildings. quoted on an annual, gross per square foot
basis. Rent calculations do not include
Vacancy rate – Percentage of total inventory sublease space.
physically vacant as at the survey date including
direct vacant and sublease space. Cap rate – (Or going-in cap rate) Capitalization
rates in this survey are based on multi-tenant
absorption –Net change in physically occupied institutional grade buildings fully leased at
space over a given period of time. market rents. Cap rates are calculated by
dividing net operating income (NOI) by
new supply – Includes completed speculative purchase price.
and build-to-suit construction. New supply
quoted on a net basis after any demolitions or Note: sF = Square Feet
conversions. psF = Per Square Foot
CBD = Central Business District
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