North American Office Highlights Q4-12

Q4 2012 | OFFICE

NORTH AMERICA

HIGHLIGHTS

Unlocking 2013 Office
Property Performance
What will be the right combination in 2013?

K.C. CONWAY, MAI, CRE EMD | Market Analytics
MARKET INDICATORS
Relative to prior period KEY TAKEAWAYS
US US Canada Canada • The North American and U.S. office vacancy rates declined further during Q4 2012 to 14.09%
Q4 Q1 Q4 Q1
2012 2013* 2012 2013* and 14.63%, respectively. This was the fourth consecutive quarter of improvement for the 6.4
billion square feet of inventory in the 85 North American office markets tracked by Colliers.
VACANCY
• The market uncertainty and volatility of 2H2012 inhibited neither office leasing or transaction
NET ABSORPTION     activity. Q4 North American net absorption of 21.1 MSF was more than double Q3’s 10.4 MSF.
CONSTRUCTION 2012 total net absorption was 50.7 MSF (roughly the office inventory of Ft. Lauderdale), the best
since the 2008–2009 financial crisis.
RENTAL RATE
*Projected • Major office property transactions totaled $77.6 billion in 2012, and surged at year-end 2012.
Construction is the change in Under Construction Q4’s $29.1 billion in office building sales surpassed all prior quarters in 2012, according to Real
Capital Analytics.

NORTH AMERICAN OFFICE MARKET
Summary Statistics, Q4 2012 NORTH AMERICAN OFFICE VACANCY, INVENTORY AND ABSORPTION – Q4 2012

US CAN NA

VACANCY RATE 14.63% 6.80% 14.09%

Change From Q3 2012 -0.21% -0.26% -0.21%

ABSORPTION (MSF) 18.8 2.3 21.1

NEW CONSTRUCTION (MSF) 9.1 1.5 10.6

UNDER CONSTRUCTION (MSF) 39.5 11.3 50.8 Absorption Per Market (SF)
q3 '12 - q4 '12

2,500,000

ASKING RENTS PER SF US CAN 1,250,000
250,000
-250,000
Downtown Class A $41.22 $51.42 -1,250,000

-2,500,000
Change from Q3 2012 0.17% 1.67%

Suburban Class A $26.21 $31.94 Sq. Ft. By Region
2 billion
2.00000000
1 billion
1.00000000
Change from Q3 2012 0.08% 0.16% 200 mil.
2.00000000

Occupied Sq. Ft.
Total_OffSF-Vacant_OffSF
Vacant_OffSF Ft.
Vacant Sq.

WWW.COLLIERS.COM

HIGHLIGHTS | Q4 2012 | OFFICE | NORTH AMERICA

KEY TAKEAWAYS (continued)

• Capital is migrating out of the risk curve for investment in office building assets in search of yield. This trend, reported by Colliers in previous 2012
reports, was corroborated by the recent Association of Foreign Investors in Real Estate report in which four of the top five markets for investment
were in the U.S., including Houston for the first time.

• “ICEE” office markets are still hot. Intellectual Capital, Energy and Education (ICEE) markets continue to capture a disproportionate share of North
American office absorption. During 2012, two-thirds of the 10 North American MSAs with the greatest absorption are characterized as
ICEE markets. We see this trend continuing in 2013 as technology, energy and knowledge gateway centers remain the dominant generators of
office-related employment.

• Medical Office has been a sleeper office sub-property type that saw a 30% growth in transaction activity in CY 2012 to $6.1 billion, or just shy of
the 10% total $77.6 billion in CY 2012 office property sales. And, approximately half of the 71 MSF of office space under construction in the U.S. at
the onset of 2013 is for medical-related use.

• Recovery in housing is an overlooked office demand driver that will gain additional traction in 2013.

IN THIS QUARTER’S REPORT, WE TAKE A LOOK AT THE
COMBINATION TO UNLOCKING VALUE IN 2013:
CANADIAN OFFICE ABSORPTION BY MARKET Q4 2012

RIGHT 14: In 2013 look for North American
vacancy to drop below 14%, fueled by Montréal, QC 365.7

another 50 MSF of absorption. Calgary, AB 330.0

203.3
LEFT 80:total office transactions above Toronto, ON
190.2
$80 billion Regina, SK

Saskatoon, SK 138.9
RIGHT 10: CMBS office property Waterloo Region, ON 24.4
delinquencies rate below 10% Edmonton, AB 13.3

LEFT ICEE: Office job growth in Tech/ Winnipeg, MB 0.0

Energy/Education MSAs outperforms Halifax, NS -0.5

FIRE MSAs for a third consecutive year Victoria, BC -14.4

Vancouver, BC -130.9
RIGHT MO: Medical Office is the emerging -183.2
Ottawa, ON
leader among office sub-property sectors
-300.0 -200.0 -100.0 0.0 100.0 200.0 300.0 400.0
See page 7 for details  Thousands

CANADIAN OFFICE UNDER CONSTRUCTION BY MARKET Q4 2012

Toronto, ON 2.78

Calgary, AB 1.66

Vancouver, BC 1.56

Ottawa, ON 0.36

Montréal, QC 0.30

Halifax, NS 0.19

Winnipeg, MB 0.13

Regina, SK 0.08

Waterloo Region, ON 0.07

Saskatoon, SK 0.05

Victoria, BC 0.00

Edmonton, AB 0.00

0.0 0.5 1.0 1.5 2.0 2.5 3.0
Millions

Note: Q3 data reported for Winnipeg, MB

P. 2 | COLLIERS INTERNATIONAL


IN BRIEF: OFFICE OUTLOOK 2013 North American Downtown Markets:
2012 finished—and 2013 began—as Colliers observed in fall 2012: with progress on all fronts. Excluding renewals, of the leases signed
• North American Office Vacancy falls to just 14.09% at YE 2012. this quarter, did most tenants:

• Net leasing activity best in five years: i) 21.1 MSF in Q4 2012; and ii) 50.7 MSF for CY 2012
• A 19% surge in office building sales surpasses 2004 transaction volume (3,000+ properties
Hold Steady
totaling approximately $78 billion during 2012) 69.1%
Expand
16.2%
Despite the harmful summer “UV (Uncertainty & Volatility) rays” during 1H2012, and lingering anxiety
Contract
surrounding the U.S. fiscal debt crisis, ongoing Eurozone recession, the cost and logistics of 14.7%
implementing Obamacare, and anemic job growth (150,000/month) for two consecutive years, office
real estate is persevering and returning to a state of balance. However, the recovery is broadening,
both in the factors that have driven it over the past 12 months, as well as the markets that it’s reaching.
No longer is the recovery confined to the CBDs of the “sexy six” core MSAs of New York, Boston,
Chicago, Los Angeles, San Francisco and Seattle; it’s expanding to suburban submarkets and
secondary MSAs. Real Capital Analytics’ Office Year In Review report noted a 31 percent increase in North American Downtown Markets:
What was the trend in Free Rent (in months)
suburban office building sales during 2012, and a 40 percent increase in office building sales outside offered by CBD landlords this quarter?
the six core MSAs. While this new interest is driven by a dearth of assets in the core MSAs and the
search for yield in response to Federal Reserve monetary policy and cap rate compression, it has been
office job growth in technology, energy and primary-education focused MSAs (what Colliers coined the
Intellectual Capital, Energy and Education, or “ICEE” markets in 2011) that has defined which secondary Same
markets were participating in this broadening recovery in the office property sector thus far. Less 80.9%
14.7%
More
In 2013, two other positive influences will impact this expansion: the housing recovery and growth in 4.4%
medical office demand. Both are broad-based across the U.S. and will have more of an effect on
suburban office submarkets than CBDs. Why? First, professional services associated with a rise in
new home construction and existing home sales activity will rebuild in proximity to this increasing
housing activity in the suburbs. Second, our healthcare delivery model is shifting from one concentrated
on expensive urban hospital campuses to less capital-intensive, suburban outpatient facilities.
North American Downtown Markets:
The ICEE, housing, and medical office factors, along with the continuing search for yield by investors, What was the trend for tenant
add up to M.O.T.S (More Office To Secondaries) in 2013. As the diagram below depicts, rising improvement allowances offered by
absorption and modest new supply are driving vacancy down, and the requisite conditions to improve CBD landlords this quarter?
NOI are in place to absorb any interest rate risk in 2H2013.
Hold Steady
91.2%
U.S. OFFICE MARKET Q4 2010–Q4 2012
Contract Expand
2.9% 5.9%

20.0 16.11
15.57 15.36 15.14
18.0 15.03 14.96 14.88 14.83 14.63 16.0
16.0 14.0
14.0
12.0
12.0 North American Suburban Markets:
Vacancy %

10.0 Excluding renewals, of the leases signed
10.0
8.0 this quarter in your CBD/downtown,
8.0 did most tenants:
6.0
6.0
4.0 4.0
2.0 Expand
2.0 30.9% Hold Steady
60.3%
- -
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Contract
8.8%
2011 2012
Absorption MSF Completions MSF Vacancy %

COLLIERS INTERNATIONAL | P. 3


Vacancy
From a regional perspective, Canada has the lowest average vacancy rate
at 6.8 percent; and in the U.S., the Northeast has the lowest vacancy rate
just shy of 14 percent. The highest vacancy rate among North American
regions is the Western U.S. at 15.27 percent. The South and Midwest have
average regional vacancy rates of 14.81% and 14.71%, respectively.
Housing has been slow in its recovery in both these regions, and the job
growth has been more focused on manufacturing, transportation and
distribution, favoring industrial real estate over office.

US CA NA

Vacancy Rate: 14.63% 6.80% 14.09%

BEHIND THE STATISTICS & BEYOND THE BASICS Change from Q3 2012 -0.21% -0.26% -0.21%
Scope of Colliers Office Outlook Report: Colliers monitors office property
conditions in 85 North American markets from Toronto to Tampa, totaling
Absorption
6.4 billion square feet of inventory. Approximately 93 percent (6.0 billion
The final tally on 2012 net office absorption was not in the cards in
square feet) of this inventory is located in the United States.
mid-2012, when it appeared that tenants and businesses were pulling back
from leasing activity driving absorption down 6% over the prior six-month
The largest 20 North American markets (those with at least 100 MSF of
period (2H2011). However, despite the market’s anxiety over the November
existing inventory) constitute approximately 60 percent of the 6.4 billion
2012 election and the Fiscal Cliff, 2012’s net office absorption had its
square feet of North American office space tracked by Colliers. All of the
best performance since the 2008–2009 financial crisis. Q4 net absorption
>90 million-square-foot markets are located in the U.S., except one: Toronto.
was more than double that for any prior quarter during 2012 (21.1 MSF in
With respect to 2012 net absorption, just 10 of the 85 markets accounted
for 53 percent of the 50.7 MSF of net absorption, and all but one market Q4 compared to 10.0 MSF for the rest of the year).
(Calgary) are located in the U.S. Below are the ten absorption-leading
MSAs for 2012—seven of which are ICEE markets. Which markets outperformed and why? Examination of the top ten North
American markets with respect to absorption in Q4 and YTD 2012 reveals
the impact of ICEE employment drivers, commencement of a true housing
ICEE MARKETS LEAD IN 2012 ABSORPTION recovery, and importance of having a nationally or regionally recognized
medical center.
MSA 2012 ABSORPTION

1 Houston (ICEE) 4.50 MSF TOP MARKETS FOR ABSORPTION

MSA Q4 2012 MSA CY 2012
2 Dallas (ICEE) 2.90 MSF
Detroit 4.50 MSF
1 1.66 MSF Houston
(Auto + Housing) (ICEE) + Medical Center
3 Atlanta (ICEE) 2.80 MSF
2.90 MSF
2 Phoenix 1.46 MSF Dallas (ICEE) + Medical Center

4 Detroit 2.75 MSF Atlanta 2.80 MSF
3 Chicago 1.13 MSF (Housing Recovery) (ICEE) + Medical Center

5 Chicago 2.70 MSF Montreal 2.75 MSF
4 0.99 MSF Detroit
(ICEE) Medical Center

Philadelphia 2.70 MSF
6 Calgary (ICEE) 2.5 MSF 5 0.98 MSF Chicago
(ICEE) Medical Center

Houston 2.5 MSF
6 0.93 MSF Calgary
(ICEE) (ICEE)
7 Phoenix 2.4 MSF
Boston Phoenix
7 0.93 MSF 2.4 MSF
(ICEE) (Housing Recovery)
8 Boston (ICEE) 2.2 MSF
Dallas 2.2 MSF
8 0.84 MSF Boston
(ICEE) (ICEE) + Medical Center

9 Philadelphia (ICEE) 2.2 MSF 2.2 MSF
9 Minneapolis 0.82 MSF Philadelphia (ICEE) + Medical Center

10 Seattle (ICEE) 2.2 MSF 2.2 MSF
10 Sacramento 0.82 MSF Seattle (ICEE) + Medical Center



Looking at this list, several themes emerge: Association of Foreign Investors in Real Estate’s annual 2013 Foreign
Investment Survey ranked the U.S. as the top place overall to invest; four
• The overlapping seven MSAs: Seven of the top ten most active U.S. markets were among their top five picks, including Houston, which
markets for leasing activity in Q4 were also among the ten most active had never before made this report’s global ranking.
MSAs for all of calendar 2012. Houston, Dallas, Detroit, Chicago,
Phoenix, Boston, and Philadelphia are prominent in both categories. Construction Activity
To assess the risk of overbuilding, new construction activity needs
• The predominance of ICEE: Seven of the top ten markets for net
to be considered from three perspectives: 1) new supply as a percent
absorption in 2012 are MSAs with an ICEE employment profile
of existing inventory; 2) geographic concentration; and 3) sub-property
(technology, energy and/or primary education).
type concentration.
• The increasing role of housing and medical office: However, only
five of the top ten markets for Q4 leasing activity are ICEE MSAs. At the onset of 2013, approximately 78.5 MSF of new office supply is
What explains the difference, and what explains the emergence of underway in the U.S. and Canada, according to Dodge Pipeline. That
MSAs like Atlanta, Detroit and Phoenix? The answer is two-fold: activity translates to a North American new supply to existing inventory
1) the real housing recovery is taking hold in even the most ratio of 1.2%. Historically, only when this ratio passes 2.0% is it considered
distressed housing markets, such as Atlanta, Detroit and Phoenix; elevated and indicative of overbuilding risk. What’s more, the current
and 2) high-profile medical centers are strongly impacting demand supply-to-inventory ratio is actually much lower for most U.S. office
for medical office space: Eight of the leading MSAs for absorption markets due to geographic and sub-property type concentration.
in 2012 have nationally or regionally recognized medical centers.
With respect to sub-property type construction, 51% of the 78.5 MSF of
Looking forward to 2013, the only brake on office leasing activity in key total new supply is medical-office-related construction. Of the remaining
energy markets—Dallas, Denver, Houston, Oklahoma City, Philadelphia 38.5 MSF, 17.55 MSF (45.7% of the non-medical office new supply) is
(impact of Bakken shale), and Calgary—will be the delayed delivery of new concentrated in just five states. The following table delineates these
space under construction. Houston and Denver can’t complete new space geographic and sub-property type ratios:
fast enough to keep pace with demand. ICEE will also continue to be an
important office space demand driver in markets like Atlanta and Detroit
New Supply
where auto technology is fueling demand for engineers, and the office Delineation Ratio (%)
(MSF)
space to house them. (In 2012, Porsche and General Motors both made
material commitments to locating auto technology centers in Atlanta.) North America 78.5 100.0
And, the housing recovery will benefit suburban office space demand as
contractors and professional service providers (closing attorneys, Canada 7.2 9.2
architects, engineers, building inspectors, etc.) rebuild or expand their
operations to service housing activity of approximately 1.0 million new
United States 71.3 91.8
units—after years of less than half that level of activity. Atlanta, Charlotte,
Nashville, Phoenix, Tampa, and inland California markets will see the most
Office Property 78.5 100.0
benefit from this housing recovery in 2013. In aggregate, 2013 should
surpass 2012’s 50 MSF of net absorption by conservative estimates of
15%–20%, or 57.5 to 60.0 MSF in total. Market forces will see 2H2013 Medical Office 40.0 51.0
disproportionately higher net leasing activity than 1H2013, as was the case
in 2012. Non-Medical Office 38.5 49.0

Transaction Activity U.S. Non-Medical Office 38.5 100.0
Transactions of major office property were also uninhibited by 2H2012
uncertainty. There were more than 3,000 transactions in 2012, totaling Top 5 States 17.5 45.7
$77.6 billion, with a noticeable surge at year-end 2012: the $29.1 billion in
Q4 office building sales surpassed all prior quarters in 2012, according to
Texas 6.7 17.4
Real Capital Analytics. As in recent years, New York, San Francisco, Los
Angeles, Washington D.C., and Seattle accounted for approximately 50
percent of the total dollar volume of office building sales during 2012. California 4.9 12.8
Houston and Denver (two key ICEE MSAs) now rank among the top
markets for office building transaction volume. Pennsylvania 2.5 6.4

The $77.6 billion in office transaction activity from 2012 is likely to be New York 2.0 5.2
surpassed in 2013, given the amount of idle domestic and foreign capital
searching for yield in tangible assets, such as commercial real estate. The New Jersey 1.5 3.9



ENGINEERING NEWS-RECORD’S CONSTRUCTION COST INDEX
YEAR JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC AVG

2013 9437 9453 Note: Construction Costs never dropped post 2007 & are rising at a faster pace.
2012 9176 9198 9268 9273 9290 9291 9324 9351 9341 9376 9398 9412 9308
2011 8938 8998 9011 9027 9035 9053 9080 9088 9116 9147 9173 9172 9070
2010 8660 8672 8671 8677 8761 8055 8844 8837 8836 8921 8951 8952 8799
2009 8549 8533 8534 8528 8574 8578 8566 8564 8586 8596 8592 8641 8570
2008 8090 8094 8109 8112 8141 8185 8293 8362 8557 8623 8602 8551 8310
2007 7880 7880 7856 7865 7942 7939 7959 8007 8050 8045 8092 8089 7966
2006 7660 7689 7692 7695 7691 7700 7721 7722 7763 7883 7911 7888 7751
2005 7297 7298 7309 7355 7398 7415 7422 7479 7540 7563 7630 7647 7446
2004 6825 6862 6957 7017 7065 7109 7126 7188 7298 7314 7312 7308 7115
2003 6581 6640 6627 6635 6642 6694 6695 6733 6741 6771 6794 6782 6694
2002 6462 6462 6502 6480 6512 6532 6605 6592 6589 6579 6578 6563 6538
2001 6281 6272 6279 6286 6288 6318 6404 6389 6391 6397 6410 6390 6343
2000 6130 6160 6202 6201 6233 6238 6225 6233 6224 6259 6266 6283 6221

INDEX METHODOLOGY: 200 hours of common labor at the 20-city average of common labor rates, plus 25 cwt of standard structural steel shapes at the mill price prior to 1996 and the fabricated
20-city price from 1996, plus 1.128 tons of portland cement at the 20-city price, plus 1,088 board-ft of 2x4 lumber at the 20-city price.

The good news is that the U.S. ratio of new supply to inventory (excluding CAPITAL MARKETS
medical office construction) is less than a one-half of one percent—the What is better than improving office property type fundamentals? For
lowest since 2003. And, only 21 MSF of new construction is underway those that purchased any of the 3,000 office properties that traded in
outside of the five most active states, where energy and technology 2012, the answer is availability of capital. Domestic and foreign sources
companies, such as Exxon Mobil and Shell Energy in Texas and Endo are flush with capital ready to invest in tangible assets like real estate, that
Pharmaceutical in Pennsylvania, account for 60 percent of activity. can offer 2.5 to 3.0 times the yield offered by the U.S. government’s
10-year Treasury bond. And, the CMBS debt markets are opening up again
However, rising construction costs are a concern that spans all commercial after four consecutive years of annual new issuance below $50 billion.
property types. It may surprise many to learn that construction costs Underwriting terms and pricing spreads have also compressed in favor of
never actually declined during the 2008–2009 financial crisis and the borrowers: Improving market conditions have enabled even properties
ensuing recession. As documented by the Engineering-News Record, with elevated vacancy rates to become financeable again due to the low
Construction, costs have risen 17% since the end of 2007, and are up over DSCR hurdle provided by sub-5.0 percent interest rates and 90 percent
5.0 percent since February 2011. Investors and developers considering LTVs. Declining CMBS delinquency rates have further aided new issuance
new construction investments should budget construction cost increases at interest, and have CMBS investors enthusiastic about 2013 new issuance
double the CPI for 2013 and 2014, due to pressures on labor and materials. increasing 50 percent over 2012’s $50 billion level to $75 billion. If you
have tenants, and can meet a 1.4 DSCR using a 4.5% loan coupon, the
capital markets are once again open to refinance your office building.
PERCENTAGE 30+ DAYS DELINQUENT BY PROPERTY TYPE

12 PERCENTAGE 30+ DAYS DELINQUENT BY PROPERTY TYPE

JAN ‘13 DEC ‘12 NOV ‘12 3 MON 6 MON 1 YEAR

10.34
10.16 10.13 Industrial 11.32 11.24 11.48 11.53 11.72 12.14
10.04 9.99
10 9.68
9.80
9.69 9.71 9.71
9.57
9.52
9.37 Lodging 11.77 11.73 12.24 11.24 13.06 12.09

Multifamily 13.43 13.98 14.21 14.26 15.69 15.39

Office 10.48 10.66 10.37 10.20 10.69 8.90
8
Jan 2012 Mar 2012 May 2012 Jul 2012 Sep 2012 Nov 2012 Jan 2013
Retail 7.79 7.62 7.75 8.03 8.03 7.88

Source: Trepp – January 2013 CMBS Delinquency Report Source: Trepp – January 2013 CMBS Delinquency Report



THE COMBINATION TO UNLOCKING 2013
OFFICE PROPERTY PERFORMANCE

RIGHT 14 – Vacancy: LEFT ICEE – Office Demand Drivers:
If the absorption momentum from 2H2012 carries over into The greatest opportunity for value enhancement and yield will
2013 and Congress can maneuver its fiscal debt obstacle remain in those secondary markets with an ICEE employment
course in 1H2013, the North American office vacancy rate will decline profile. Traditional FIRE (Finance Insurance and Real Estate) markets are
below 14.0 percent for the first time since 2005. Office property investors going to face office absorption headwinds as financial institutions reduce
are keenly focused on the need for improvement in NOI in office properties operating costs and the amount of office space they occupy. Financial
going forward to be positioned to absorb higher interest rate costs 3-5 institutions will be returning office inventory to the market undermining
years out. Cap rate compression has aided property values the past two recent improvement in vacancy. For this part of the combination, turn to
years, but future value enhancement will have to be unlocked through NOI ICEE vs. FIRE.
improvement (i.e., increasing occupancy and rental rates).
RIGHT MO – Medical Office:
LEFT 80 – Office Transaction Activity: The role of medical office space in the overall office vacancy
With improving office property fundamentals and cheap debt to picture warrants monitoring in 2013, particularly as the Obama
leverage transactions to maximize yield, 2013 should see office administration’s healthcare legislation and mandated healthcare exchanges
transaction activity surpass the $80 billion mark by as much as 20%. The are implemented. Due to strong demand and an absence of much new
opportunity to unlock value here is in quality assets in secondary ICEE supply since 2007, demand for medical office space has risen dramatically
markets, such as Atlanta, Austin, Baltimore (now a post-Panamax ready and is fueling a boom in new construction. The states with the most
port), Denver, Fort Worth, and Houston. medical office construction activity are Texas, California, Maryland, New
York, North Carolina and Ohio. Medical office offers an unlocked opportunity
RIGHT 10 – CMBS Office Delinquency: as contraction continues among traditional users of office space, such
For the capital markets to contribute to the improving office as financial services firms. Do your homework before jumping into this
property conditions, CMBS delinquency rates need to continue sub-property sector, though. Vacancy and rental rates vary widely, and
on their downward trajectory and remain south of 10 percent overall. As this subsector lacks the same availability of data and transparency as the
new issuance increases to a level north of $50 billion (increases the greater North American office market.
denominator in the delinquency calculation), and special servicers
continue to resolve in excess of $1.0 billion in delinquent or defaulted loans
(decreases the numerator portion of the delinquency ratio calculation),
CMBS delinquency is likely to remain below 10 percent. This trend needs
to translate over to the office property sector. With a January CMBS office
delinquency rate of 10.48%, this ratio should decline further, and maybe
even drop below 10%, as mature legacy office property loans are finally
able to refinance. CMBS delinquency below 10 percent is critical to capital
market confidence and unlocking more opportunity for office property
leverage in 2013.

Houston



UNITED STATES | DOWNTOWN OFFICE | ALL INVENTORY

EXISTING NEW SUPPLY UNDER VACANCY VACANCY ABSORPTION
MARKET INVENTORY (SF) Q4 2012 CONSTRUCTION RATE (%) RATE (%) Q4 2012
DEC 31, 2012 (SF) (SF) SEP 30, 2012 DEC 31, 2012 (SF)

NORTHEAST

Baltimore, MD 28,840,782 234,874 - 14.06 14.02 9,076
Boston, MA 60,725,404 98,096 2,435,000 14.08 13.06 616,698
Hartford, CT 9,769,060 - - 21.24 20.72 50,896
New York, NY – Downtown Manhattan 110,942,138 - 5,200,000 16.09 15.36 814,431
New York, NY – Midtown Manhattan 227,532,283 - 1,052,150 11.94 12.04 (226,585)
New York, NY – Midtown South Manhattan 165,368,697 - 850,000 7.96 8.03 (119,601)
Philadelphia, PA 43,133,883 654,000 - 11.17 10.76 178,159
Pittsburgh, PA 32,161,109 52,000 800,000 9.68 10.9 (129,087)
Stamford, CT 18,966,293 - - 19.55 21.00 (274,722)
Washington, DC 140,909,953 - 1,903,911 10.44 10.48 (59,655)
White Plains, NY 7,741,025 - - 15.19 15.78 (45,062)
Northeast Total 846,090,627 1,038,970 12,241,061 11.86 11.77 814,548
SOUTH

Atlanta, GA 49,933,614 433,822 450,000 17.04 16.94 47,727
Birmingham, AL* 4,338,335 - - 22.00 19.80 95,482
Charleston, SC 2,068,469 - 52,000 7.70 7.24 9,369
Charlotte, NC 22,511,630 828,831 - 8.80 7.94 193,649
Columbia, SC 4,490,309 - - 16.80 14.21 116,125
Dallas, TX 34,744,566 204,109 - 26.98 27.58 (208,846)
Ft. Lauderdale-Broward, FL 8,003,061 - - 16.49 16.33 12,534
Ft. Worth, TX 10,400,974 - 154,801 13.05 12.14 94,885
Greenville, SC 3,143,679 - 235,000 12.24 15.68 (107,938)
Houston, TX 36,514,081 50,000 - 14.45 13.72 269,002
Jacksonville, FL 15,994,027 73,423 - 14.66 14.42 30,994
Little Rock, AR 6,422,699 - - 11.30 12.48 (22,714)
Louisville, KY 43,630,770 300,000 - 11.80 11.89 228,712
Memphis, TN 6,108,640 - 26,000 14.77 14.66 6,481
Miami-Dade, FL 18,491,614 33,930 - 18.29 18.36 (12,903)
Nashville, TN 12,087,245 48,000 - 14.76 13.52 167,473
Orlando, FL 12,744,796 - - 11.83 11.86 (3,379)
Raleigh/Durham/Chapel Hill, NC 13,657,917 - - 6.49 6.08 55,964
Richmond, VA 17,066,905 - 112,000 10.76 10.70 10,479
Savannah, GA 825,240 72,072 - 15.21 14.18 68,561
Tampa Bay, FL 8,607,635 66,927 - 12.91 13.36 (39,132)
West Palm Beach/Palm Beach County, FL 10,130,113 - - 17.79 16.69 110,753
South Total 341,916,319 2,111,114 1,029,801 15.10 14.88 1,123,278

*Absorption and vacancy figures for Birmingham account for direct space only



UNITED STATES | DOWNTOWN OFFICE | ALL INVENTORY (continued)


MIDWEST
Chicago, IL 159,986,353 297,763 - 13.45 13.23 347,362
Cincinnati, OH 18,047,286 - - 18.12 18.09 5,408
Cleveland, OH 34,140,929 710,100 475,000 19.26 19.07 66,433
Columbus, OH 19,597,350 395,500 280,000 11.00 11.90 36,469
Detroit, MI 26,153,283 1,165,425 - 21.04 20.88 42,065
Grand Rapids, MI 5,461,588 - - 23.24 22.34 49,026
Indianapolis, IN 23,453,317 - 18,000 13.71 13.34 94,650
Kansas City, MO 34,664,036 - 215,000 14.60 14.43 61,577
Milwaukee, WI 19,887,288 145,000 - 13.71 13.39 62,655
Minneapolis, MN 31,840,763 - - 15.13 14.98 46,977
Omaha, NE 6,358,928 60,000 - 7.16 8.53 9,192
St. Louis, MO 27,493,907 - - 16.52 16.66 (37,405)
St. Paul, MN 12,904,838 - - 13.85 13.82 4,013
Midwest Total 419,989,866 2,773,788 988,000 14.98 14.86 788,422
WEST

Bakersfield, CA 3,020,093 - - 8.86 7.62 44,571
Boise, ID 3,741,536 241,208 260,000 10.95 10.24 66,851
Denver, CO 34,251,235 39,656 112,000 12.43 12.26 70,574
Fresno, CA 3,284,713 - - 11.40 11.66 (8,393)
Honolulu, HI 7,119,083 - - 14.00 13.21 55,973
Las Vegas, NV 4,192,128 - 458,200 12.31 12.37 (2,488)
Los Angeles, CA 31,942,700 418,600 229,500 18.46 19.03 (178,200)
Oakland, CA 16,891,513 - - 12.90 13.45 (92,321)
Phoenix, AZ 21,016,381 203,609 - 21.30 21.52 29,081
Portland, OR 33,287,613 100,083 - 9.77 9.89 (40,940)
Reno, NV 1,388,078 - - 19.58 19.50 9,309
Sacramento, CA 18,949,701 130,000 - 9.80 9.59 39,662
San Diego, CA 10,149,972 - - 20.14 19.84 30,448
San Francisco, CA 88,179,309 189,835 2,510,615 10.51 10.28 387,187
San Jose/Silicon Valley 7,601,845 318,000 - 23.69 24.73 (81,425)
Seattle/Puget Sound, WA 56,216,928 340,563 625,501 12.01 12.04 284,779
Stockton, CA 8,221,819 - - 18.86 18.16 58,138
Walnut Creek/Pleasanton, CA 12,561,714 - - 16.26 15.71 (4,731)
West Total 362,016,361 1,981,554 4,195,816 13.32 13.29 668,075

U.S. TOTAL 1,970,013,173 7,905,426 18,454,678 13.36 13.25 3,394,323



UNITED STATES | DOWNTOWN OFFICE | CLASS A

AVG ANNUAL QUARTERLY ANNUAL
EXISTING VACANCY VACANCY ABSORPTION
QUOTED RENT CHANGE CHANGE
MARKET INVENTORY (SF) RATE (%) RATE (%) Q4 2012
(USD PSF) IN RENT IN RENT
DEC 31, 2012 SEP 30, 2012 DEC 31, 2012 (SF)
DEC 31, 2012 (%) (%)

NORTHEAST

Baltimore, MD 13,228,621 14.93 0.7 5.9 14.93 14.92 1,726
Boston, MA 41,333,537 13.92 1.5 1.7 13.92 13.07 349,709
Hartford, CT 6,660,379 22.39 -1.0 -0.3 22.39 21.47 60,970
New York, NY – Downtown Manhattan 77,672,777 18.75 -0.1 -2.2 18.75 17.54 940,170
New York, NY – Midtown Manhattan 192,290,701 12.60 -1.2 0.7 12.60 12.76 (297,418)
New York, NY – Midtown South Manhattan 32,865,338 6.79 0.1 11.7 6.79 8.33 (504,207)
Philadelphia, PA 32,656,957 10.59 -0.5 - 10.59 10.52 19,612
Pittsburgh, PA 18,279,017 7.64 2.9 4.1 7.64 7.13 29,859
Stamford, CT 13,299,364 21.77 -1.9 -6.4 21.77 23.01 (164,957)
Washington, DC 85,704,698 11.90 0.3 2.1 11.90 11.92 (20,351)
White Plains, NY 4,885,999 17.00 -2.0 -4.3 17.00 18.10 (53,855)
Northeast Total 518,877,388 13.30 -0.2 1.2 13.30 13.22 361,258
SOUTH

Atlanta, GA 30,000,462 18.87 0.1 -1.3 18.87 18.53 101,522
Birmingham, AL* 3,322,353 11.56 - 1.0 11.56 11.34 7,962
Charleston, SC 1,043,494 3.33 1.2 10.1 3.33 2.55 8,134
Charlotte, NC 16,040,594 10.40 1.9 1.4 10.40 9.11 208,132
Columbia, SC 1,926,914 15.02 3.9 4.1 15.02 10.13 94,216
Dallas, TX 22,693,924 23.68 0.9 2.3 23.68 24.69 (230,826)
Ft. Lauderdale-Broward, FL 4,454,238 21.30 -0.4 -0.5 21.30 21.27 1,229
Ft. Worth, TX 5,850,052 11.69 0.9 0.9 11.69 10.54 67,382
Greenville, SC 1,871,715 8.83 6.1 -3.5 8.83 15.32 (121,511)
Houston, TX 26,119,764 10.69 0.4 5.2 10.69 9.75 244,855
Jacksonville, FL 6,830,482 15.40 0.3 2.0 15.40 14.97 29,314
Little Rock, AR 2,636,353 9.72 0.2 0.6 9.72 11.83 (3,212)
Louisville, KY 10,560,672 13.05 0.4 -4.6 13.05 14.57 100,131
Memphis, TN 1,966,542 18.26 -0.1 0.3 18.26 18.63 (7,338)
Miami-Dade, FL 9,758,448 21.50 -0.9 -3.2 21.50 21.31 18,821
Nashville, TN 3,953,423 20.50 -1.5 -6.7 20.50 18.37 84,077
Orlando, FL 5,784,868 16.57 -1.2 -2.1 16.57 15.93 37,028
Raleigh/Durham/Chapel Hill, NC 5,633,684 8.74 0.4 -3.1 8.74 8.33 22,893
Richmond, VA 5,895,522 7.46 0.1 4.6 7.46 7.37 4,979
Savannah, GA 642,460 13.02 7.5 7.2 13.02 7.65 97,201
Tampa Bay, FL 4,791,174 13.98 -0.5 2.0 13.98 15.22 (59,515)
West Palm Beach/Palm Beach County, FL 3,337,557 22.51 -0.3 3.2 22.51 20.69 60,785
South Total 175,114,695 15.62 0.7 1.0 15.62 15.40 766,259




UNITED STATES | DOWNTOWN OFFICE | CLASS A (continued)
AVG ANNUAL QUARTERLY ANNUAL
EXISTING VACANCY VACANCY ABSORPTION
QUOTED RENT CHANGE CHANGE
MARKET INVENTORY (SF) RATE (%) RATE (%) Q4 2012
(USD PSF) IN RENT IN RENT
DEC 31, 2012 SEP 30, 2012 DEC 31, 2012 (SF)
DEC 31, 2012 (%) (%)

MIDWEST
Chicago, IL 60,846,877 37.36 0.3 0.7 14.52 14.05 284,974
Cincinnati, OH 8,815,068 21.96 - -6.0 19.11 22.06 (260,407)
Cleveland, OH 9,728,269 21.33 -0.3 6.3 13.68 13.34 32,992
Columbus, OH 8,106,210 18.52 -1.4 -1.5 12.15 11.14 82,018
Detroit, MI 9,120,878 22.80 -0.2 -3.1 17.14 17.07 6,139
Grand Rapids, MI 1,542,050 19.28 0.1 -8.1 22.34 19.56 42,756
Indianapolis, IN 9,928,804 19.03 2.0 -1.2 18.92 18.30 50,070
Kansas City, MO 10,276,792 18.90 -0.3 0.7 19.91 19.89 2,029
Milwaukee, WI 5,411,144 20.17 2.8 0.9 13.09 12.07 55,208
Minneapolis, MN 13,618,828 16.52 6.9 15.3 12.33 11.78 75,272
Omaha, NE 3,417,878 19.62 -0.6 1.7 4.22 4.54 (10,025)
St. Louis, MO 10,678,000 17.73 0.5 -0.3 13.53 13.78 (25,983)
St. Paul, MN 2,773,960 13.35 -0.4 17.8 9.64 10.19 (15,440)
Midwest Total 154,264,758 27.20 0.6 0.8 14.85 14.64 319,603
WEST

Bakersfield, CA 699,798 17.40 - - 4.35 3.86 3,413
Boise, ID 2,228,115 20.12 -2.6 8.1 7.05 5.21 200,470
Denver, CO 21,238,158 30.0 0.1 4.2 13.54 13.02 110,767
Fresno, CA 1,058,046 24.00 - -7.7 12.37 12.37 -
Honolulu, HI 4,966,720 34.45 0.7 -1.0 13.34 12.23 43,171
Las Vegas, NV 807,588 31.32 0.4 0.8 10.67 11.60 (7,551)
Los Angeles, CA 17,749,600 36.12 - -6.2 16.46 18.00 (267,100)
Oakland, CA 10,198,245 30.72 -3.0 -3.0 9.86 11.22 (138,461)
Phoenix, AZ 9,459,620 22.86 - 1.5 20.05 21.15 (104,497)
Portland, OR 13,189,621 24.89 - - 8.76 8.78 (3,087)
Reno, NV 557,635 21.31 -1.3 -7.5 20.87 18.03 15,817
Sacramento, CA 9,062,614 32.40 - - 8.34 8.08 23,514
San Diego, CA 7,254,266 28.20 - -0.4 17.67 17.37 21,659
San Francisco, CA 56,642,612 49.56 5.6 20.5 10.31 9.71 508,711
San Jose/Silicon Valley 3,365,127 31.83 -6.6 -0.7 25.84 27.02 (40,361)
Seattle/Puget Sound, WA 32,531,336 30.96 2.1 3.4 14.12 13.60 428,837
Stockton, CA 2,790,574 20.16 - -4.5 27.05 26.45 16,621
Walnut Creek/Pleasanton, CA 8,233,222 27.72 0.4 0.9 14.97 15.44 (38,786)
West Total 202,032,897 35.43 - 0.8 13.07 12.96 773,137

U.S. TOTAL 1,050,289,738 41.22 0.2 1.0 13.87 13.74 2,220,257



UNITED STATES | SUBURBAN OFFICE | ALL INVENTORY


NORTHEAST

Baltimore, MD 86,786,838 234,874 1,163,140 12.65 12.44 386,882
Boston, MA 110,971,331 98,096 1,563,851 19.37 19.10 314,921
Fairfield County, CT 41,493,424 74,726 - 12.56 12.88 -68,762
Hartford, CT 12,251,551 - - 14.96 14.44 63,815
Long Island, NY 71,732,215 768,000 55,000 10.71 10.66 718,538
New Jersey – Central 103,723,820 315,670 116,057 20.92 20.70 487,335
New Jersey – Northern 137,967,000 30,000 737,600 21.03 21.09 -52,196
Philadelphia, PA 110,578,994 654,000 322,005 15.17 14.94 802,694
Pittsburgh, PA 89,275,846 52,000 764,395 7.57 7.06 46,342
Washington, DC 283,566,213 - - 15.44 15.83 -1,118,510
Westchester County, NY 37,071,839 - - 15.05 15.39 -126,457
Northeast Total 1,085,419,071 2,227,366 4,722,048 15.73 15.73 1,454,602
SOUTH

Atlanta, GA 171,243,642 433,822 674,097 17.04 17.03 363,892
Birmingham, AL* 14,213,847 - - 18.48 17.93 77,062
Charleston, SC 9,379,515 - 75,000 15.00 14.79 35,516
Charlotte, NC 75,365,988 828,831 108,596 13.31 13.45 626,394
Columbia, SC 5,016,258 - - 24.04 25.61 -79,155
Dallas, TX 241,020,318 204,109 1,027,817 15.94 15.57 1,050,842
Ft. Lauderdale-Broward, FL 42,982,403 - 806,572 13.73 13.71 6,984
Ft. Worth, TX 20,158,197 - 144,233 7.73 7.25 97,536
Greenville, SC 5,093,005 - - 18.52 18.10 21,540
Houston, TX 159,079,088 50,000 4,394,827 14.20 13.81 664,309
Jacksonville, FL 44,916,088 73,423 2,607 13.36 13.26 96,049
Little Rock, AR 7,625,053 - 46,000 12.58 12.45 -43,423
Memphis, TN 27,443,840 - 113,392 14.82 14.46 100,717
Miami-Dade, FL 63,016,310 33,930 162,063 13.96 13.64 229,620
Nashville, TN 14,842,231 28,000 - 7.49 7.51 23,248
Orlando, FL 53,927,670 - 87,895 15.58 14.95 431,065
Raleigh/Durham/Chapel Hill, NC 64,136,382 - - 14.15 13.97 119,064
Richmond, VA 34,412,752 - - 11.73 12.21 -164,213
Savannah, GA 1,534,208 - - 23.69 18.94 48,350
Tampa Bay, FL 71,219,715 66,927 269,272 16.08 15.69 404,271
West Palm Beach/Palm Beach County, FL 28,655,101 - 30,000 19.18 18.30 251,828
South Total 1,155,281,611 1,719,042 7,942,371 15.03 14.78 4,361,496




UNITED STATES | SUBURBAN OFFICE | ALL INVENTORY (continued)


MIDWEST
Chicago, IL 157,535,389 297,763 - 17.07 16.73 783,012
Cincinnati, OH 35,718,611 - - 20.10 21.01 -326,094
Cleveland, OH 107,371,768 710,100 788,866 9.94 9.97 605,183
Columbus, OH 43,849,812 156,500 111,000 11.88 12.06 56,993
Detroit, MI 137,172,750 1,165,425 31,232 19.08 18.59 1,619,025
Grand Rapids, MI 11,557,283 - 382,000 23.28 23.19 10,173
Indianapolis, IN 45,740,597 - 75,000 13.29 13.15 90,627
Kansas City, MO 56,941,429 - 1,510,765 13.45 13.27 103,240
Milwaukee, WI 33,034,701 145,000 - 11.51 11.70 -59,970
Minneapolis, MN 82,273,735 - 931,700 14.33 13.39 776,569
Omaha, NE 20,597,840 60,000 180,000 12.12 12.10 72,609
St. Louis, MO 55,244,405 - - 11.53 11.08 247,729
Midwest Total 787,038,320 2,534,788 4,010,563 14.86 14.62 3,979,096
WEST

Bakersfield, CA 5,994,188 - 81,594 6.60 6.98 -22,693
Boise, ID 11,093,685 196,235 - 18.77 18.98 135,657
Denver, CO 104,416,469 - 745,767 14.29 14.08 126,306
Fairfield, CA 4,877,417 - - 25.28 25.70 -20,478
Fresno, CA 18,008,675 - 70,000 12.99 13.25 -47,197
Honolulu, HI 7,490,275 - 40,000 12.89 12.88 9,218
Las Vegas, NV 35,115,687 - 42,123 25.55 24.64 320,637
Los Angeles, CA 168,909,400 418,600 1,213,700 17.76 17.78 410,100
Los Angeles – Inland Empire, CA 21,626,300 - - 22.84 21.25 344,823
Oakland, CA 16,165,151 - - 19.54 18.11 231,011
Orange County, CA 80,477,400 - 380,000 17.08 16.61 315,300
Phoenix, AZ 109,902,559 108,609 375,482 21.58 20.36 1,435,184
Portland, OR 44,445,096 100,083 163,874 11.71 11.19 322,024
Reno, NV 5,547,351 - - 16.37 15.99 38,829
Sacramento, CA 73,472,600 130,000 257,451 18.74 17.82 781,917
San Diego, CA 70,818,124 - 946,457 13.92 13.59 235,680
San Francisco Peninsula 35,142,199 18,781 - 13.69 14.03 -102,740
San Jose/Silicon Valley 54,745,633 318,000 - 12.86 12.42 390,701
Seattle/Puget Sound, WA 74,567,897 - 82,950 12.47 10.98 370,396
Walnut Creek/Pleasanton, CA 32,987,041 - - 12.77 11.73 343,070
West Total 975,803,147 1,290,308 4,399,398 16.56 16.00 5,617,745

U.S. TOTAL 4,003,542,149 7,771,504 21,074,380 15.56 15.31 15,412,939



UNITED STATES | SUBURBAN OFFICE | CLASS A
AVERAGE
EXISTING QUARTERLY ANNUAL VACANCY VACANCY ABSORPTION
ANNUAL QUOTED
MARKET INVENTORY (SF) CHANGE IN CHANGE IN RATE (%) RATE (%) Q4 2012
RENT (USD PSF)
DEC 31, 2012 RENT (%) RENT (%) SEP 30, 2012 DEC 31, 2012 (SF)
DEC 31, 2012

NORTHEAST
Baltimore, MD 30,282,850 24.87 -1.03 -3.23 15.91 15.37 362,930
Boston, MA 47,074,119 24.74 -1.55 -3.06 17.80 17.88 -40,309
Fairfield County, CT 17,597,470 35.35 -2.67 9.24 13.25 13.77 -27,217
Hartford, CT 7,906,889 20.25 -2.78 -3.39 13.53 12.75 61,867
Long Island, NY 23,077,975 30.47 0.20 1.84 11.46 11.56 -21,446
New Jersey – Central 60,391,076 26.52 -0.86 -1.78 22.45 21.95 546,337
New Jersey – Northern 84,682,274 26.28 -1.05 -1.28 20.62 20.42 193,221
Philadelphia, PA 68,076,073 24.73 0.91 2.96 14.54 14.27 740,149
Pittsburgh, PA 17,179,193 21.95 0.87 2.09 6.49 5.30 148,053
Washington, DC 132,646,603 32.03 -1.39 -1.51 15.26 15.83 -745,611
Westchester County, NY 17,442,819 26.42 -0.38 -2.87 18.72 19.26 -94,133
Northeast Total 506,357,341 27.65 -0.92 -0.61 16.74 16.73 1,123,841
SOUTH
Atlanta, GA 79,312,905 22.34 0.68 0.81 16.61 16.34 527,253
Birmingham, AL* 8,943,059 21.09 -0.80 0.43 16.81 15.96 76,173
Charleston, SC 3,942,925 23.18 0.17 -2.56 11.45 11.49 809
Charlotte, NC 19,403,225 22.80 0.62 6.19 15.18 16.61 410,325
Columbia, SC 973,189 16.55 -1.55 -4.00 13.77 14.93 -11,304
Dallas, TX 91,055,763 23.30 - 1.30 16.20 15.50 634,612
Ft. Lauderdale-Broward, FL 10,963,059 27.14 0.04 -2.44 18.82 18.45 40,574
Ft. Worth, TX 2,638,353 24.00 - -2.04 3.89 3.85 1,032
Greenville, SC 2,245,798 17.32 1.88 -0.40 15.60 12.66 66,172
Houston, TX 66,845,822 28.20 3.26 3.15 12.00 11.44 379,470
Jacksonville, FL 9,206,865 19.58 - -3.59 8.46 8.32 13,028
Little Rock, AR 3,027,212 19.25 0.94 3.89 18.98 18.71 9,217
Memphis, TN 8,113,880 21.44 -0.79 -1.02 8.42 8.10 25,608
Miami-Dade, FL 16,308,475 30.52 0.07 -3.05 19.81 18.70 180,756
Nashville, TN 7,288,561 23.23 0.13 6.32 5.34 5.87 -39,206
Orlando, FL 16,827,628 20.93 -1.60 -3.77 21.08 19.88 201,731
Raleigh/Durham/Chapel Hill, NC 24,532,197 20.76 -0.48 -2.21 14.39 13.76 154,190
Richmond, VA 13,564,697 18.78 -0.05 0.48 14.24 13.60 86,395
Savannah, GA 490,035 22.70 0.18 0.35 23.70 17.79 28,932
Tampa Bay, FL 23,629,402 22.78 -0.35 -2.15 16.07 14.48 214,151
West Palm Beach/Palm Beach County, FL 9,163,879 29.68 -1.53 -2.94 18.14 17.23 83,092
South Total 418,476,929 23.80 0.61 0.57 15.23 14.70 3,083,010




UNITED STATES | SUBURBAN OFFICE | CLASS A (continued)
AVERAGE
EXISTING QUARTERLY ANNUAL VACANCY VACANCY ABSORPTION
ANNUAL QUOTED
MARKET INVENTORY (SF) CHANGE IN CHANGE IN RATE (%) RATE (%) Q4 2012
RENT (USD PSF)
DEC 31, 2012 RENT (%) RENT (%) SEP 30, 2012 DEC 31, 2012 (SF)
DEC 31, 2012

MIDWEST
Chicago, IL 76,979,405 27.00 - 1.89 18.23 17.70 403,696
Cincinnati, OH 15,916,607 20.54 0.39 0.20 19.40 20.31 -144,815
Cleveland, OH 13,701,278 21.34 -0.33 0.05 10.44 10.05 689,788
Columbus, OH 18,133,071 19.05 0.37 2.14 10.57 11.50 -27,569
Detroit, MI 33,643,164 20.52 -0.24 -2.01 15.52 15.72 -67,275
Grand Rapids, MI 2,206,876 17.50 -2.78 -9.00 28.84 28.22 13,520
Indianapolis, IN 12,403,471 18.00 0.39 1.58 17.72 17.10 85,772
Kansas City, MO 14,734,064 20.30 0.30 -1.93 11.87 11.78 14,100
Milwaukee, WI 5,912,609 22.32 9.90 9.79 10.93 10.58 20,889
Minneapolis, MN 26,674,839 13.80 -1.43 -0.50 16.12 15.62 131,289
Omaha, NE 4,342,362 26.15 - 0.85 5.07 5.01 104,815
St. Louis, MO 25,996,388 21.89 0.05 -1.40 10.62 10.79 -45,320
Midwest Total 250,644,134 21.91 0.14 0.77 15.26 15.12 1,178,890
WEST

Bakersfield, CA 2,697,867 24.00 - - 4.74 5.28 -14,426
Boise, ID 3,108,058 15.12 0.13 0.47 14.14 13.57 17,779
Denver, CO 34,321,698 23.74 1.32 4.49 11.95 11.96 -3,198
Fairfield, CA 1,917,086 25.61 -2.07 2.11 26.88 29.77 -55,433
Fresno, CA 4,017,507 25.20 - - 17.26 18.85 -63,910
Las Vegas, NV 4,979,076 29.28 - -1.61 34.96 33.02 96,889
Los Angeles, CA 102,533,800 33.96 0.71 1.43 17.26 17.20 455,100
Los Angeles – Inland Empire, CA 5,194,800 23.52 1.03 2.08 27.39 23.62 195,866
Oakland, CA 3,870,228 26.40 - -0.90 26.20 24.23 76,225
Orange County, CA 32,834,800 25.56 -0.93 -0.47 17.93 16.96 253,700
Phoenix, AZ 30,242,049 23.29 0.26 -1.06 23.12 20.31 918,319
Portland, OR 11,012,912 22.95 -0.35 0.31 14.02 14.06 -4,348
Reno, NV 2,989,478 18.62 - -7.09 13.90 13.91 34,636
Sacramento, CA 16,324,396 22.20 -0.54 -1.60 21.51 20.99 185,646
San Diego, CA 23,418,247 32.88 - 4.18 11.52 10.73 184,465
San Francisco Peninsula 22,281,029 41.64 -0.29 10.16 13.53 14.09 -109,899
San Jose/Silicon Valley 27,077,797 39.07 -1.34 8.17 14.02 14.43 145,393
Seattle/Puget Sound, WA 20,850,141 31.68 0.86 4.55 10.38 8.57 132,984
Walnut Creek/Pleasanton, CA 15,972,148 25.92 3.85 14.89 10.33 8.98 216,974
West Total 365,643,117 30.38 0.35 3.37 16.25 15.68 2,662,762

U.S. TOTAL 1,541,121,521 26.21 -0.08 0.82 15.97 15.67 8,048,503



CANADA | DOWNTOWN OFFICE | ALL INVENTORY


Calgary, AB 39,567,994 256,657 1,661,000 4.52 3.68 330,012
Edmonton, AB 11,260,840 117,768 - 8.42 8.30 13,280
Halifax, NS 4,684,110 38,948 190,000 11.44 11.45 -470
Montréal, QC 49,428,581 127,000 304,000 5.01 4.27 365,660
Ottawa, ON 15,526,942 87,700 360,000 5.57 6.75 -183,170
Regina, SK 3,801,824 220,000 80,000 1.92 2.59 190,164
Saskatoon, SK* 2,319,464 109,000 50,000 3.25 3.34 138,900
Toronto, ON 69,531,181 464,455 2,784,698 5.10 4.58 203,259
Vancouver, BC 24,408,488 20,299 1,563,810 3.50 4.03 -130,891
Victoria, BC 4,952,849 80,455 - 7.79 8.28 -14,428
Waterloo Region, ON 3,772,982 - 66,075 14.87 14.22 24,360
Winnipeg, MB 11,188,648 - 130,375 6.59 6.59 -

CANADA TOTAL 240,443,903 1,522,282 7,189,958 5.35 5.04 936,676

*Saskatoon tracks but does not submit suburban inventory figures for this report

CANADA | DOWNTOWN OFFICE | CLASS A
AVG ANNUAL
EXISTING QUARTERLY ANNUAL VACANCY VACANCY
QUOTED RENT ABSORPTION
MARKET INVENTORY (SF) CHANGE CHANGE RATE (%) RATE (%)
(CAD PSF) Q4 2012 (SF)
DEC 31, 2012 IN RENT (%) IN RENT (%) SEP 30, 2012 DEC 31, 2012
DEC 31, 2012

Calgary, AB 26,727,389 60.21 - 8.7 1.46 1.84 -102,756
Edmonton, AB 9,074,913 42.02 0.7 5.3 8.27 8.45 -16,593
Halifax, NS 1,933,746 32.35 - 1.7 9.06 8.95 2,144
Montréal, QC 23,075,596 45.00 7.1 7.1 4.49 4.13 82,257
Ottawa, ON 9,535,830 51.60 3.5 6.7 4.52 4.92 -38,670
Regina, SK 1,094,911 42.00 4.0 13.5 0.96 1.42 212,815
Saskatoon, SK 570,571 40.00 5.3 8.1 1.84 3.59 67,509
Toronto, ON 40,130,328 54.28 0.6 2.4 5.70 4.70 187,396
Vancouver, BC 10,029,234 54.57 -1.1 0.1 2.08 2.65 -60,827
Victoria, BC 513,808 35.00 -2.8 -7.4 9.43 4.88 39
Waterloo Region, ON 1,559,429 25.66 - -0.8 12.48 12.01 7,282
Winnipeg, MB 2,619,428 33.50 - N/A 4.76 4.76 -

CANADA TOTAL 126,865,183 51.42 1.7 4.5 4.46 4.24 340,596


North American Office Highlights Q4-12

North American Office Highlights Q4-12

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North American Office Highlights Q4-12