1. Q1 2011 | OFFICE
GREATER COLUMBUS REGION
OFFICE TRENDS REPORT
Activity Rebounds
COLUMBUS REGION OVERVIEW
The Columbus office market incurred 14,500 square feet of negative absorption. Despite the continued
malaise of absorption, there is stronger sense of optimism than at any time since the start of the
recovery. We expect good absorption numbers for second quarter 2011 based on the increased rate
of deal completions and a large number pending deals at the close of first quarter. Activity this
quarter was marked by a number of tenants sought to reduce their footprint or sublease their
unneeded space, and a number of tenants in the Central Business District (CBD) expanded their
footprints within their current buildings. The biggest story was the number of buildings that transferred
MARKET INDICATORS hands as 6 buildings over 100,000 square feet were transferred, including the Duke transfers
Q1 Q2
mentioned in the last report. Continued on page 2 ...
2010 2011* FORECASTS AND REFLECTIONS
• The Columbus region posted negligible weak construction.
VACANCY results during the first quarter of 2011 with • Average asking rental rates for class A
the vacancy rate increasing marginally to 13.4 continued to soften this quarter declining by
NET ABSORPTION
percent from 13.3 percent in Q4 2010 adjusted $.47, which class B average asking rental
CONSTRUCTION — numbers. rates increased by $.50.
• NetJets Inc began construction of their
RENTAL RATES — — • Rent concessions continued to play a very
140,000-square-foot building at Port important factor in negotiation. Capital is still
*Projected trend for next quarter Columbus International Airport. The scarce for tenant improvement dollars and
Grandview Yard has begun leasing the first landlords are waiting on the credit market to
phase of the project marking the completion of thaw.
DATA SET CHANGES
RENTAL RATES ABSORPTION, COMPLETIONS, AND VACANCY RATES
Colliers international has
20.0% 300,000 changed the critieria for
$22.00
18.0% inclusion in the office
$21.00
200,000
$20.00 16.0%
dataset. All 10,000
square foot, class A , B,
Completions and Absorption
$19.00
100,000
Rental Rates
14.0%
$18.00 C buildings, not owned
Vacancy Rates
$17.00 12.0%
0 and fully leased by
$16.00
10.0% government are included
in the dataset. This has
$15.00
(100,000)
$14.00 8.0%
3Q 08 4Q 08 1Q 09 2Q 09 3Q 09 4Q 09 1Q 10 2Q 10 3Q 10 4Q 10 1Q 11 changed the overall
6.0% (200,000)
Class A Rental Rates Class B
vacancy rate signifi-
4.0% cantly from the numbers
(300,000)
2.0% at the close of 2010.
0.0% (400,000)
3Q 08 4Q 08 1Q 09 2Q 09 3Q 09 4Q 09 1Q 10 2Q 10 3Q 10 4Q 10 1Q 11
Completions Absorption Vacancy Rate
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2. RESEARCH & FORECAST REPORT | Q1 2011 | OFFICE | GREATER COLUMBUS REGION
Market interest has increased during the first offices and a training center.
Delaware
County quarter. While it’s very difficult to calculate and
Union County gauge market interest accurately, Colliers Market Activity Volume is the sum of the absolute
Powell Polaris
Westerville
International attempts to track tenants in the value of each absorption change in the market,
Licking
Worthington New
County market. There was an increase of 200,000 and it tells us how much space was in transition
Dublin Albany
Bethel
North
Central
square feet in the minimum square feet desired in the quarter. Roughly 300,000 fewer square
Hilliard Arlington/
Grandview
Easton Gahanna/
Airport by tenants that have toured space and have been feet were in transition this quarter than first
in the market. There were roughly eight tenants quarter last year. The total amount in transition
CBD
Madison East
County
Southwest
seeking more than 50,000 square feet of space was slightly more than 700,000 square feet.
Southeast
Fairfield
which is an increase over the average of seven in This is significant as the general trend is that the
County
the previous year. first quarter has the highest amount of space in
Pickaway County transition
Tenants are pursuing a broad range of options
The Columbus office market consists
for dealing with excess space on current leases, SIGNIFICANT INVESTMENT SALES
of 15 suburban submarkets plus the and even some owner users are opening up The past six months have been momentous for
Central Business District submarket. The space in their buildings to exercise multi-tenant investment sales locally. It is estimated that there
Columbus region features a total of 62.6 options. Beyond subleasing space we heard that is $1.4 billion in commercial real estate loans that
million square feet, 43.5 million of which many tenants were relocating within their will expire by 2014 nationally, and in light of that
is suburban.
current locations. This behavior typifies power fact we expect that institutional and investment
on the part of the tenant in that landlords are sales activity will increase locally over that
very willing to rearrange suites to keep tenants. period. While data on the number of underwater
loans is unavailable we estimate that there is at
Columbia Gas has committed to anchoring the least one million square feet of space that could
corner of Neil Avenue and Nationwide Boulevard transfer under the conditions like the sales that
with a 280,000 square foot building. Also, have occurred lately.
Columbia Gas has announced an investment plan
that includes $50 million in upgrades for Central Two major landmark towers were sold in the
and southeast Ohio as well as hiring 36 new CBD, the Atlas tower and the LeVeque tower. The
employees for that region. city’s two oldest towers each sold well below the
previous price paid. LeVeque Tower sold for $4
Bob Evans has announced it will move to New million ($11.31 psf) while the Atlas building was
Albany garnering a seven year payroll tax of 25 sold for $3.5 million ($2.92) The 250,000-square-
percent as well as a 15-year real tax abatement foot Nisource Call Center at 1600 Dublin Road
on the value of its new buildings. The firm plans sold in February for $6 million ($24.00 psf).
to construct a 175,000-square-foot facility for
MARKET ACTIVITY
SALES AND DEALS
PROPERTY ADDRESS SALES DATE SALE PRICE SIZE SF SALES PRICE / SF TYPE
50 W. Broad St Mar 2011 $4,043,000.00 353,768 $11.43 General Office
8 E Long St Feb 2011 $3,500,000.00 120,000 $29.17 General Office
1600 Dublin Road Mar 2011 $6,000,000.00 252,000 $23.81 General Office
350 E Wilson Bridge Rd Feb 2011 $2,700,000.00 166,399 $63.91 Medical
2401 N Columbus St Jan 2011 $3,120,000.00 15,582 $200.23 General Office
PROPERTY ADDRESS LESSOR LESSEE LEASE SF ASKING PRICE / SF (FSG) TYPE
150 E Gay St Continental Centre Llc Exact Logistics 19,348 $9.50 (NNN) Direct Lease
7450 Huntington Park Dr Buckeye Realty Corp Confidential 18,610 $16.00 Direct Lease
580 N 4th St SBHI INC N/A 12,335 $13.50 Direct Lease
1783-99 Kenny Rd Franklin Co. Board Com- N/A 11,593 $5.60 (NNN) Direct Lease
mission
P. 2 | COLLIERS INTERNATIONAL

3. RESEARCH & FORECAST REPORT | Q1 2011 | OFFICE | GREATER COLUMBUS REGION
UPDATE Market Comparisons
OFFICE MARKET
Net Absorption Construction Asking Rental Rates
SUBMARKET Total SF Vacant SF Vacancy % Current Quarter Year-to-date Current Completions Class A ($) Class B ($)
CBD 19,091,001 2,210,245 11.6 58,477 58,477 - - $19.25 $16.78
ARLINGTON/GRANDVIEW 4,752,155 733,439 15.4 (11,579) (11,579) - 65,000 $17.06 $15.90
DUBLIN 9,501,878 1,369,331 14.4 (30,479) (30,479) - - $18.67 $14.96
EAST 3,555,814 573,905 16.1 9,651 9,651 140,000 - $17.76 $12.22
EASTON 2,685,332 193,084 7.2 (9,353) (9,353) - - $18.18 $18.75
GAHANNA/AIRPORT 1,262,397 294,486 23.3 42,411 42,411 - - $18.18 $15.84
HILLIARD 2,480,456 310,575 12.5 (11,315) (11,315) - - $19.09 $15.47
NEW ALBANY 1,935,789 249,521 12.9 (14,587) (14,587) 69.700 - $18.71 $15.00
NORTH CENTRAL 1,255,636 86,953 6.9 (19,128) (19,128) - - $23.00 $15.76
POLARIS 4,419,869 350,218 7.9 (79,647) (79,647) - - $18.54 $16.45
POWELL 273,719 73,895 27.0 7,133 7,133 - - - $14.76
SOUTHEAST 402,548 70,365 17.5 (10,500) (10,500) - - - -
SOUTHWEST 236,158 41,473 17.6 - - - - - $8.50
WESTERVILLE 4,489,479 834,929 18.6 (9,222) (9,222) - - $16.92 $15.35
WORTHINGTON 6,496,402 1,001,623 15.4 63,638 63,638 - - $17.92 $14.23
SUBURBAN TOTAL 43,747,632 6,183,797 14.1 (72,977) (72,977) - 65,000 $17.50 $14.91
TOTAL 62,838,633 8,394,042 13.4 (14,500) (14,500) - 65,000 $18.10 $15.46
Net Absorption Construction Asking Rental Rates
PROPERTY TYPE Total SF Vacant SF Vacancy % Current Quarter Year-to-date Current Completions By Product Type
CLASS A 25,562,843 3,163,300 12.4 (85,168) (85,168) 209,700 65,000 $18.10
CLASS B 23,215,746 3,501,441 15.1 94,389 94,389 - - $15.46
CLASS C 14,060,044 1,729,301 12.3 (23,721) (23,721) - - $12.35
TOTALS 62,838,633 8,394,042 13.4 (14,500) (14,500) - 65,000 $15.87
QUARTERLY COMPARISON AND TOTALS
Net Absorption Construction Asking Rental Rates
QUARTER, YEAR Total SF Vacant SF Vacancy % Current Quarter Year-to-date Current Completions By Product Type
Q4, 2010 40,544,677 7,188,371 17.73 (13,360) (253,648) $18.56 $14.96
Q3, 2010 40,544,677 7,184,011 17.72 (191,783) (240,288) 90,000 - $18.77 $15.38
Q2, 2010 40,544,677 6,992,228 17.25 54,334 (48,505) 90,000 - $19.30 $15.82
Q1, 2010 40,544,677 7,046,562 17.38 (102,839) (102,839) 90,000 - $19.30 $15.82
COLUMBUS REGION MARKET
Class B space did well first quarter
for the first time since second quarter
2010. Prior to second quarter 2010
class B space did not have positive
absorption after fourth quarter of 2008.
Pricing between class types are still
compressed which is in large part .
COLLIERS INTERNATIONAL | P. 3

4. RESEARCH & FORECAST REPORT | Q1 2011 | OFFICE | GREATER COLUMBUS REGION
CENTRAL BUSINESS DISTRICT negative absorption. A good portion of the space
The CBD was one of the stronger performing expansion and contraction occurred here with
submarkets first quarter due to a couple of large downsizing accounting for about 15,000 square 480 offices in
leases including two expansions. Huntington
Bancshares took an extra 15,471 square feet of
feet of negative absorption and expansion
accounting for 5,000 square feet of positive
61 countries on
space at 250 Broad Street, and Motorist absorption. 6 continents
Insurance Group took an extra 6,930 at 45 N.
High Street. Class B average asking rental rates SOUTH MARKET United States: 95
Canada: 17
increased by a significant amount as well from The south submarkets are the Southwest and Latin America: 17
$15.87 to $16.78. the Southeast. There was some movement in Asia Pacific: 52
the Southeast: Scholars Preparatory and Career EMEA: 85
Tax incentives are available for downtown Center for Children leased 24,000 square feet of • $1.6 billion in annual revenue
relocation including the Columbus Downtown space at 1565 Integrity Drive, but the vacancy of
• 672.9 million square feet under
Office Incentive Program which is available to the Legal Aid Society from 34,500 square feet of
management
those private sector tenants who are moving space at 1108 City Park Drive washed out the
• Over 10,000 professionals
from outside the Columbus city limits and will gain. No change occurred in the Southwest.
create at least ten jobs.
GREATER COLUMBUS REGION:
EAST MARKET
NORTH COLUMBUS MARKET The east submarkets are the East side, Easton,
Richard B. Schuen SIOR CCIM
CEO | Principal | Columbus
The north submarkets are Dublin, Powell, Polaris, Gahanna/Airport, and New Albany. Proposed 8800 Lyra Drive
North Central, Worthington, and Westerville. construction in New Albany continues to be the Suite # 150
Class A leasing was weak in these submarkets biggest story in the East as the business parks Columbus, Ohio 43240
with no positive absorption occurring. Class A grow and develop there. The Gahanna/Airport TEL +1 614 410 5612
incurred 98,491 of negative absorption with the submarket experienced 42,411 square feet of FAX +1 614 410 3312
vast majority of it coming from losses in Polaris. absorption from a couple larger deals.
Leslie Hobbs
Marketing & Research Manager
While leasing was strong, the average asking EMPLOYMENT DATA 8800 Lyra Drive
rental rates dipped in all submarkets except for Suite # 150
The unemployment rate for Columbus in January
Polaris. Overall, class A space is being taken but Columbus, Ohio 43240
was 8.5 percent, up from 7.8 percent in
not at a pace that will allow landlords increase TEL +1 614 410 5640
December 2010. The unemployment rate is
average asking rental rates in the short term. FAX +1 614 410 3310
determined by the ratio of the number of those
who have looked for work in the last 4 weeks Jonathan Badgley
Polaris was the poorest performing submarket Research Analyst
compared to the total number of workers and
with 79,647 of negative absorption. The largest 8800 Lyra Drive
those searching for employment. The recent dip
portion of this recorded loss was from the Suite # 150
from 8.0 percent in November to 7.7 percent in Columbus, Ohio 43240
landlord adding 24,341 square feet from
December 2010 and the subsequent increase in TEL +1 614 410 5652
American Family Insurance.
January through February closing at is 8.2 FAX +1 614 410 3327
percent is a sign that those out of work are
In Dublin, smaller tenants shuffled while only a
returning to the labor market and less of an
few larger changes moved absorption into the
indication that layoffs are occurring. Based on
red. Sophos left the central Ohio market
the Bureau of Labor Statistics’ preliminary
altogether leaving 28,700 square feet at 565
numbers, the only sector to lose employment This document/email has been prepared by Colliers
Metro Place. Corvell expanded their lease at
from January to February was Trade, International for advertising purposes. Colliers
5080 Tuttle Crossing Blvd. by 6,000 square feet. International statistics and data are audited annually and
Transportation, and Utilities. may result in revisions to previously reported quarterly
and final year-end figures. Sources include Columbus
Alcatel-Lucent signed a 120,000-square-foot Dispatch, Business First, Xceligent, and the Wall Street
The sectors which are significant for office Journal.
lease at 5455-5475 Rings Road, Atrium II. The
leasing were steady or up in the preliminary
firm will be vacating their offices on East Broad
February numbers. The information sector was
Street in Columbus and moving 600 employees
flat January to February but down 1.8 percent
to the new location. The absorption changes
from a year ago. Employment for Financial
from this deal will not be reflected in this report
Activities, and Professional and Business
as the transition has not yet occurred.
Services were flat January to February with
12-month change of 1.3 percent and 4.4 percent
WEST MARKET respectively. Education and Health Services
increased by about 100 workers with a .6 Accelerating success.
The west submarkets, are Arlington/Grandview
percent 12-month change.
and Hilliard. Both submarkets experienced slight
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