Global Summary and Regional Synopses Asia Pacific Simon Lo Latin America Mario Rivera

Transcription

1 Global Office Real Estate Review Mid-Year 2009

2 Contents Global Summary and Regional Synopses GLOBAL OFFICE MARKETS Europe, Middle East & Africa (EMEA) North America Asia Pacific and Latin America CONSTRUCTION AND VACANCY EMEA North America Asia Pacific and Latin America CENTRAL BUSINESS DISTRICT SURVEY EMEA Occupancy Costs North America Occupancy Costs Asia Pacific and Latin America Occupancy Costs EMEA U.S. Dollars Occupancy Costs/Sales Prices/Cap Rates North America U.S. Dollars Occupancy Costs/Sales Prices/Cap Rates Asia Pacific and Latin America U.S. Dollars Occupancy Costs/Sales Prices/Cap Rates SUBURBAN/OUT-OF-TOWN SURVEY EMEA Occupancy Costs North America Occupancy Costs Asia Pacific and Latin America Occupancy Costs EMEA U.S. Dollars Occupancy Costs/Sales Prices/Cap Rates North America U.S. Dollars Occupancy Costs/Sales Prices/Cap Rates Asia Pacific and Latin America U.S. Dollars Occupancy Costs/Sales Prices/Cap Rates Glossary Colliers Office Locations RESEARCH CONTACTS North America Ross Moore ross.moore@colliers.com Europe, Middle East & Africa Kate Lawler kate.lawler@colliers.com Asia Pacific Simon Lo simon.lo@colliers.com Latin America Mario Rivera mario.rivera@colliers.com Australia & New Zealand Felice Spark felice.spark@colliers.com Japan Yumiko Yasuda yumiko.yasuda@colliers.com For more detailed information, please go to and view Colliers latest market reports. Cover photo of Vancouver, Canada, home of the 2010 Winter Olympics.

3 GLOBAL OFFICE REAL ESTATE REVIEW MID-YEAR 2009 OFFICE CONSTRUCTION TOP 50 CITIES UNDER CONSTRUCTION MILLION SF Market (Ranked by June 2009) June 2009 Dec June 2008 Global Office Market Shows Further Deterioration Moscow Guangzhou Shanghai Dubai Paris Beijing Tokyo Central Wards Singapore Washington DC Metro London Mexico City Sofia Abu Dhabi São Paulo Mumbai Brussels Munich Seoul Jakarta Bogotá Calgary New York Toronto Seattle Hamburg Bangalore Delhi Houston Madrid Chennai Saint Petersburg Milan Frankfurt Düsseldorf Santiago Budapest Miami/Dade County Bucharest Atlanta Dallas/Ft. Worth Rio de Janeiro Amsterdam Belgrade Chicago Warsaw Charlotte Perth Melbourne Kiev Phoenix Ross J. Moore Executive Vice President, Market and Economic Research Despite signs the global economic downturn is beginning to subside, office markets around the world again posted decidedly weaker results at mid-year compared with six months prior. All regions of the world continue to experience below trend growth and as a result demand for office space is sub-par relative to the recent past. In particular, the United States, Japan and much of central and eastern Europe are key sources of weakness. A year ago only major financial centers were reporting sluggish leasing activity, however, over the past twelve months weakness has spread to all continents and almost all countries. All regions again reported higher vacancies and most reported falling rents. A handful of cities in particular saw vacancies surge and rents plunge. In parallel with sluggish leasing conditions, office investment sales activity was very limited with most regions reporting first half 2009 transaction activity well down from first half 2008 levels. The outlook for the balance of 2009 is for a further weakening in fundamentals and little prospect of recovery until early in All eyes will be on the debt markets which remain a key ingredient before any type of recovery can begin. Europe, Middle East & Africa (EMEA) Amidst continuing economic troubles throughout the region and weak office demand, the EMEA average vacancy rate rose to 11.4% at mid-year This marks an increase of over two and a half percentage points during the first six months of the year and brings the EMEA vacancy to its highest level since The rise in vacancy was felt across the region, but was most dramatic in the Baltic States, Russia, Ireland, Romania, Turkey, Ukraine, the United Arab Emirates and the United Kingdom. Eight EMEA cities are now registering vacancy rates of 20% or higher; six months ago, the highest vacancy rates in the region were near the 15% mark. With vacancy increasing, Class A rents decreased by a further 4.5% in the first half of 2009, following a 6% drop in the second half of Eastern Europe and the Middle East saw the largest declines, as recent construction booms took their toll in Abu Dhabi and Dubai as well as Moscow, Saint Petersburg and Kiev. With a few exceptions, markets in Western Europe fared somewhat better in the first half of the year, as rents in Belgium, France, Germany, The Netherlands, Switzerland, the United Kingdom and the Nordic countries decreased only marginally. Owing to severe rental declines in Dubai and Moscow (and the strengthened Pound Sterling), London regained its position as the most expensive office market in the region, with current average Class A asking rents in the West End sub-market at USD 126/sf/ year (though generous tenant incentives are keeping headline rents artificially high). Beyond London; Moscow, Paris, Dubai and Dublin rounded out the top five cities. COLLIERS INTERNATIONAL 1

4 COLLIERS INTERNATIONAL GLOBAL OFFICE REAL ESTATE REVIEW MID-YEAR 2009 GLOBAL VACANCY RATES (%) Month/Year June Dec June Dec June Dec June Dec June Dec June Dec June EMEA VACANCY RATES (%) Month/Year EMEA Asia Pacific USA Latin America London West End Paris Frankfurt Moscow June Dec June Dec June Dec June Dec June Dec June Dec June ASIA PACIFIC VACANCY RATES (%) Month/Year Hong Kong Shanghai Sydney Tokyo June Dec June Dec June Dec June Dec June Dec June Dec June The amount of office space under construction is down 8% from year-end 2008 and 23% from one year ago, evidence that development pipelines have slowed dramatically. Nevertheless, vacancy will continue to increase over the second half of 2009, and further rental declines are expected in 50% of the markets included in this survey. Current market conditions have spurred many tenants either to renegotiate more favorable lease terms or to move into markets and/or properties previously considered too expensive. Tenant incentives have also increased dramatically, with long rent-free periods (in some cases up to several years on long contracts), low or no service charges, and free fitouts are increasingly common. Asia Pacific The Asia Pacific region posted weak results during the first half of the year with the regional vacancy rate increasing by 278 basis points to register 11.4%. This increase comes on top of a rise in vacancy recorded in latter half of 2008 and brings the region s vacancy rate back to levels experienced in The jump in vacancies during the first half of the year was recorded in every city across the region. Noticeably large increases were recorded in Shanghai, Perth and Brisbane with vacancy rates up by over 750 basis points since the beginning of the year. Guangzhou posted the highest vacancy rate in the region at 24.4% followed by Chennai and Beijing at 22.5% and 19.2% respectively. Seoul recorded the region s lowest vacancy rate at just 3.1%. Office rents declined broadly across the region with only just a few cities spared. For the first six months of the year rents fell 11.8% on average. Sizeable declines were witnessed in all the Indian markets as well as Singapore, Hong Kong, Beijing, Taipei, Tokyo and most Australian cities. The Asia Pacific region remains characterized by high levels of office construction with Beijing, Guangzhou, Shanghai and Singapore all with at least 10 million square feet of construction currently underway. Construction in these four cities totals 86.3 million square feet. On the demand side, the region is split with China, India and Indonesia in particular continuing to register positive growth rates, while Hong Kong, Japan, New Zealand, Malaysia, South Korea, Singapore and Taiwan are all expected to see their respective economies contract in In a ranking of highest occupancy costs (average Class A gross rents) Hong Kong took the top spot, both within the region and the world at $ USD per square foot with Tokyo second in the region (3rd spot worldwide) at $ USD per square foot. 2 COLLIERS INTERNATIONAL

5 COLLIERS INTERNATIONAL GLOBAL OFFICE REAL ESTATE REVIEW MID-YEAR 2009 United States/Canada The U.S. office market turned decidedly more bearish in the first half of 2009 as companies gave back space and economic conditions worsened. Combined with additional new construction the overall vacancy rate increased almost one and half percentage points to average 15.5%. Rents continued to reflect weakness in the general economy with downtown lease rates down 10.3% while suburban lease rates fell a more modest 2.6%. Looking forward, office space fundamentals are sure to continue weakening as new construction comes online and demand is expected to remain subdued through until the end of 2009 and into next year. Job losses remain elevated with businesses still looking to dispose of excess space leaving leasing conditions exceptionally weak. With the exception of education, health care and government services all sectors of the economy remain sources of weakness. However, with a few signs of recovery in a number of areas including finance, the office market may show signs of stabilizing by early/mid 2010 but considerable risks still exist. Canadian markets also weakened in the first half of the year, albeit by modest standards compared to the United States. Combined with construction coming online, vacancies moved higher while rents were more mixed. Against a very weak global economy the Canadian office market continues to demonstrate surprising strength, however, like the U.S., job losses are still prevalent but there are increasing signs the domestic economy may be past the worst. Midtown Manhattan continued to hold the top spot for North American office occupancy costs with average Class A rents at $70.00 USD per square foot although this represents a 15.2% decline from year-end. NORTH AMERICA VACANCY RATES (%) Month/Year Washington DC New York Midtown Toronto San Francisco June Dec June Dec June Dec June Dec June Dec June Dec June GLOBAL OFFICE OCCUPANCY COSTS TOP 50 CITIES /PRIME SPACE PSF USD Market (Ranked by June 2009) June 2009 Dec June 2008 Hong Kong London West End Tokyo Central Wards London City Moscow Paris Rio de Janeiro London Southbank Dubai Dublin New York, NY Midtown Mumbai Milan London Docklands Abu Dhabi Minsk Birmingham Frankfurt Bristol Saint Petersburg Edinburgh São Paulo Glasgow Manchester Perth Singapore Stockholm Geneva Delhi New York, NY Midtown S Boston, MA Washington, DC Rome Munich New York, NY Downtown Brisbane Toronto, ON Sydney Shanghai Madrid Zurich Miami/Dade County, FL Warsaw Kyiv Ottawa, ON Calgary, AB Hamburg Edmonton, AB Buenos Aires Berlin COLLIERS INTERNATIONAL 3

6 COLLIERS INTERNATIONAL GLOBAL OFFICE REAL ESTATE REVIEW MID-YEAR 2009 GLOBAL CAPITALIZATION RATES/INTIAL YIELDS 50 LOWEST CITIES CBD CAP RATE (%) Market (Ranked by June 2009) June 2009 Dec June 2008 Hong Kong Singapore Vienna Geneva Tokyo Central Wards Zurich Munich Los Angeles Hamburg Frankfurt Berlin Milan Stockholm Stuttgart Copenhagen Düsseldorf Seoul Vancouver London West End Madrid Paris Oslo Brussels Amsterdam Eindhoven Helsinki Shanghai Antwerp Rome Utrecht Victoria The Hague Rotterdam London City Washington, DC Athens Birmingham Bristol Edinburgh Glasgow London Docklands London Southbank Lyon Manchester New York Midtown Prague Toronto Warsaw Nantes Washington, DC N. Virginia Latin America For the second consecutive six month period the Latin America region registered higher vacancies across most markets. After a five year period of declining vacancy rates the regional office vacancy rate increased by 116 basis points during the latter half of 2008 and a further 176 basis points in the first half of The region s vacancy rate, however, averaged a very low 4.5% with both Rio de Janeiro and Lima boasting vacancies below 3.0%. Rents were more mixed with both Santiago and Bogotá registering increases while the rest were flat or down. Office construction remained concentrated in Bogotá, Mexico City and Sao Paulo with 26.4 million square feet currently underway. For these three cities this represents a 6.7% decrease from construction underway at the end of Rio de Janeiro took top spot as the most expensive office market in the region with average Class A gross rents of $80.00 USD per square foot (7th spot worldwide). LATIN AMERICA VACANCY RATES (%) Month/Year Mexico City São Paulo Buenos Aires Bogotá June Dec June Dec June Dec June Dec June Dec June Dec June COLLIERS INTERNATIONAL

7 COLLIERS INTERNATIONAL GLOBAL OFFICE REAL ESTATE REVIEW MID-YEAR 2009 Global Investment Sales Office investment sales continued to trend down in the first six months of 2009 with global sales totaling $36.2 billion, 69% below year ago levels and $233 billion under peak volume in the first half of The Americas led the decline with sales volume off 83% followed by EMEA down 64% and Asia Pacific 59%. Prices moved lower as capitalization rates/yields shifted higher in all regions of the world. EMEA cap rates in particular moved up 114 basis points followed by the Americas with a 47 basis point increase and Asia Pacific at just 28 basis points. The ongoing drought of debt capital combined with a more sluggish global economy put a considerable damper on investment sales with investors pulling back and lenders tightening underwriting standards. Cross boarder investment in particular dropped with most investors refocusing on domestic markets as opportunities emerged closer to home. This trend is not expected to continue, however, as a rising number of global investment funds are preparing to launch global distressed real estate funds in the coming months. Tokyo repeated its top market ranking while Japan took the most active country ranking. London stayed at number two while the UK replaced the U.S. as the second most active country. The U.S. fell to third position for office property sales and in the city rankings GLOBAL INVESTMENT SALES OFFICE PROPERTIES TOP 20 CITIES Market First Half 2009 (Million USD) Tokyo 6, London 3, Paris 1, Seoul 1, NYC Metro 1, Moscow Shanghai Munich Madrid Hong Kong Beijing DC Metro Boston Melbourne LA Metro Taipei Berlin Dusseldorf Osaka SF Metro Source: Real Capital Analytics % Change COUNTRY GROWTH RATES % CHANGE IN GROSS DOMESTIC PRODUCT (GDP) Country (Ranked by 2009) (Forecast) China India Indonesia Peru Australia Poland Brazil Colombia Philippines Saudi Arabia Israel Chile South Korea Norway New Zealand Canada South Africa Switzerland United States France Austria Argentina Belgium Czech Republic Greece Denmark Spain United Kingdom Netherlands Sweden Malaysia Italy Hong Kong Slovakia Turkey Finland Taiwan Germany Singapore Hungary Japan Russia Mexico Ireland Estonia Lithuania Latvia Bold = G7 country Source: Economist Intelligence Unit, August 2009 COLLIERS INTERNATIONAL 5

8 COLLIERS INTERNATIONAL GLOBAL OFFICE REAL ESTATE REVIEW MID-YEAR 2009 CHANGE IN VACANCY RATES TOP 50 CITIES JUNE 2008 TO JUNE 2009 Market BPS Riga 2,010 Vilnius 1,820 Kyiv 1,800 Dubai 1,700 Saint Petersburg 1,650 Tallinn 1,410 Riyadh 1,400 Moscow 1,330 Abu Dhabi 1,300 Istanbul 1,031 Sofia 977 Dublin 950 Brisbane 950 Shanghai 860 Perth 770 San Jose/Silicon Valley, CA 764 Charleston, NC 745 Los Angeles, CA Inland Empire 737 Manchester 680 San Francisco, CA Peninsula 633 Belgrade 620 London City 610 Glasgow 600 Bogotá 600 Las Vegas, NV 597 Bristol 590 Birmingham 580 New York, NY Midtown 546 Budapest 542 Calgary, AB 519 Phoenix, AZ 511 Rome 500 Delhi 500 Milan 500 Columbia, SC 472 Buenos Aires 470 Honolulu, HI 469 Pleasanton/Walnut Creek, CA 450 London West End 450 Raleigh/Durham/Chapel Hill, NC 444 Prague 433 Greenville, SC 427 Beijing 415 Nashville, TN 397 Taipei 390 Boise, ID 388 New York Midtown S. 381 Boston, MA 377 Los Angeles, CA 366 San Francisco, CA 366 Manhattan sunk to number five. Paris moved up to number three spot. Rounding out the top five was Seoul at number four. Just six properties traded above $500 million in the first half of 2009, although three of those were partial interests, and only one major portfolio transaction closed. With a slowdown in the global economy and the re-pricing of debt an upward movement in capitalization rates/yields was witnessed in many markets. Major markets continued to be particularly hard hit during the first six months of the year with New York s midtown submarket registering another outward movement in capitalization rates. At mid year midtown Manhattan capitalization rates averaged 7.00% compared with 5.50% at year-end Rome, Milan, Prague and Warsaw also saw capitalization rates increase all rising by 50 basis points. In Asia Pacific, Tokyo also saw capitalization rates increase by 50 basis points to average 4.6%. By comparison Singapore capitalization rates were down 150 basis points and Hong Kong down 74. In Canada, Toronto capitalization rates increased by 40 basis points to register 7.00%. As real estate worldwide gets re-priced capitalization rates are expected to drift higher as fundamentals weaken and credit markets remain fragile. HIGHEST VACANCY RATES (%) Market June 2009 Riga 30.0 Fairfield, CA 26.0 Guangzhou 24.4 Las Vegas, NV 23.6 Los Angeles, CA Inland Empire 23.5 Greenville, SC 23.1 Chennai 22.5 Dublin 22.0 Birmingham 21.4 Phoenix, AZ 21.4 LOWEST VACANCY RATES (%) Market June 2009 Pretoria 4.5 London Southbank 4.0 Santiago 3.8 Seoul 3.1 Lima 2.7 Tirana 2.0 Geneva 2.0 Victoria, BC 1.9 Regina, SK 1.6 Rio de Janeiro COLLIERS INTERNATIONAL

9 GLOBAL OFFICE MARKETS MID-YEAR 2009 EXISTING INVENTORY JUNE 2009 MARKET COUNTRY POPULATION SF SM GEOGRAPHIC AREA EUROPE, MIDDLE EAST AND AFRICA (EMEA) Tirana Albania 343, ,422 70,950 CBD Vienna Austria 1,687, ,423,200 10,820,000 Metro Minsk Belarus 1,829,100 1,721, ,000 CBD Antwerp Belgium 1,715,707 21,520,000 2,000,000 Metro Brussels Belgium 1,048, ,974,800 12,730,000 Metro Sofia Bulgaria 1,247,059 10,383, ,000 Metro Zagreb Croatia 691,724 10,544, ,000 Metro Prague Czech Republic 1,233,211 28,133,279 2,614,617 Metro Copenhagen Denmark 1,636, ,436,000 11,100,000 Metro Tallinn Estonia 398,594 4,928, ,000 Metro Helsinki Finland 576,632 89,308,000 8,300,000 Metro Bordeaux France 232,260 21,928,880 2,038,000 Metro Lyon France 472,305 49,496,000 4,600,000 Metro Montpellier France 251,634 10,760,000 1,000,000 Metro Nantes France 282,853 26,900,000 2,500,000 Metro Paris France 11,532, ,000,000 50,000,000 Metro Strasbourg France 272,975 30,128,000 2,800,000 Metro Toulouse France 437,715 35,508,000 3,300,000 Metro Berlin Germany 3,416, ,066,000 17,850,000 Metro Düsseldorf Germany 584,217 79,827,429 7,418,906 Metro Frankfurt Germany 659, ,860,400 11,790,000 Metro Hamburg Germany 1,770, ,620,400 12,790,000 CBD Munich Germany 1,311, ,460,400 21,790,000 Metro Stuttgart Germany 591,762 79,525,008 7,390,800 Metro Athens Greece 3,187,734 57,835,000 5,375,000 Metro Budapest Hungary 1,702,297 23,831,495 2,214,823 Metro Dublin Ireland 1,045,769 33,248,400 3,090,000 Metro Tel Aviv Israel 2,203,700 26,362,000 2,450,000 Metro Milan Italy 1,299, ,892,000 11,700,000 Metro Rome Italy 2,718,768 96,840,000 9,000,000 Metro Riga Latvia 713,016 3,561, ,000 Metro Vilnius Lithuania 546,733 3,206, ,000 Metro Amsterdam Netherlands 755,605 72,630,000 6,750,000 CBD Eindhoven Netherlands 212,269 15,279,200 1,420,000 CBD Rotterdam Netherlands 587,134 38,198,000 3,550,000 CBD The Hague Netherlands 481,864 49,765,000 4,625,000 CBD Utrecht Netherlands 299,891 27,438,000 2,550,000 CBD Oslo Norway 575,475 91,460,000 8,500,000 Metro Warsaw Poland 1,707,981 33,925,871 3,152,962 Metro Lisbon Portugal 489,562 46,035,347 4,278,378 Metro Bucharest Romania 1,931,838 11,513,200 1,070,000 Metro Moscow Russia 10,470, ,208,000 10,800,000 Metro Saint Petersburg Russia 4,568,047 11,567,000 1,075,000 Metro Riyadh Saudi Arabia 4,087,152 7,202, ,413 Metro Belgrade Serbia 1,120,092 9,630, ,000 Metro Bratislava Slovakia 428,791 13,272,686 1,233,521 Metro Cape Town South Africa 3,497,097 8,102, ,020 CBD Durban South Africa 3,468,086 7,456, ,973 CBD Johannesburg South Africa 3,888,180 16,703,921 1,552,409 CBD Pretoria South Africa 2,345,908 5,132, ,019 CBD Sandton South Africa 125,583 13,816,152 1,284,029 CBD Madrid Spain 6,271, ,020,000 14,500,000 Metro Stockholm Sweden 1,889,945 17,861,600 1,660,000 CBD Geneva Switzerland 438,177 46,806,000 4,350,000 Metro Zurich Switzerland 1,307, ,752,000 10,200,000 Metro Istanbul Turkey 12,573,836 24,632,481 2,289,264 Metro Abu Dhabi United Arab Emirates 630,000 18,023,000 1,675,000 Metro Dubai United Arab Emirates 1,354,980 39,686,140 3,688,303 Metro CBD = Central Business District Metro = Metropolitan Area COLLIERS INTERNATIONAL 7

10 GLOBAL OFFICE MARKETS MID-YEAR 2009 EXISTING INVENTORY JUNE 2009 MARKET COUNTRY POPULATION SF SM GEOGRAPHIC AREA EMEA continued Kyiv Ukraine 2,765, ,422 70,950 CBD Birmingham United Kingdom 2,284, ,423,200 10,820,000 Metro Bristol United Kingdom 551,066 1,721, ,000 CBD Edinburgh United Kingdom 446,110 21,520,000 2,000,000 Metro Glasgow United Kingdom 634, ,974,800 12,730,000 Metro London City United Kingdom 7,556,900 10,383, ,000 Metro London Docklands United Kingdom 7,556,900 10,544, ,000 Metro London Southbank United Kingdom 7,556,900 28,133,279 2,614,617 Metro London West End United Kingdom 7,556, ,436,000 11,100,000 Metro Manchester United Kingdom 2,244,931 4,928, ,000 Metro NORTH AMERICA Calgary, AB Canada 1,079,310 50,928,000 4,733,086 Metro Edmonton, AB Canada 1,034,945 18,805,000 1,747,677 Metro Halifax, NS Canada 372,679 10,755, ,535 Metro Kitchener-Waterloo, ON Canada 451,235 4,179, ,383 Metro Montréal, QC Canada 3,635,571 71,851,000 6,677,602 Metro Ottawa, ON Canada 1,130,761 34,491,000 3,205,483 Metro Regina, SK Canada 179,246 4,266, ,468 Metro Saskatoon, SK Canada 202,340 1,926, ,996 CBD Toronto, ON Canada 5,113, ,665,000 16,790,428 Metro Vancouver, BC Canada 2,116,581 52,389,000 4,868,866 Metro Victoria, BC Canada 337,411 8,013, ,703 Metro Atlanta, GA United States 5,376, ,436,000 22,159,480 Metro Bakersfield, CA United States 800,458 8,854, ,862 Metro Baltimore, MD United States 2,667,117 68,768,000 6,391,078 Metro Boise, ID United States 599,753 13,691,000 1,272,398 Metro Boston, MA United States 4,522, ,352,000 14,716,729 Metro Charleston, SC United States 644,506 10,050, ,015 Metro Charlotte, NC United States 1,701,799 73,347,000 6,816,636 Metro Chicago, IL United States 9,569, ,827,000 21,917,007 Metro Cincinnati, OH United States 2,155,137 32,129,000 2,985,967 Metro Cleveland, OH United States 112, ,406,000 9,517,286 Metro Columbia, SC United States 728,063 9,517, ,480 Metro Columbus, OH United States 1,773,120 26,262,000 2,440,706 Metro Dallas/Fort Worth, TX United States 6,300, ,266,000 27,069,331 Metro Denver, CO United States 2,506, ,081,000 14,133,922 Metro Detroit, MI United States 4,425, ,038,000 11,992,379 Metro Fairfield, CA United States 409,900 3,593, ,922 Metro Fresno, CA United States 909,153 20,904,000 1,942,751 Metro Ft. Lauderdale/Broward Co., FL United States 1,912,200 54,432,000 5,058,736 Metro Greenville, SC United States 624,715 7,566, ,160 Metro Hartford, CT United States 1,190,512 24,418,000 2,269,331 Metro Honolulu, HI United States 905,034 15,706,000 1,459,665 Metro Houston, TX United States 5,728, ,748,000 18,006,320 Metro Indianapolis, IN United States 1,715,459 31,438,000 2,921,747 Metro Jacksonville, FL United States 1,313,228 39,217,000 3,644,703 Metro Kansas City, MO-KS United States 2,002,047 47,226,000 4,389,033 Metro Las Vegas, NV United States 1,865,746 40,966,000 3,807,249 Metro Little Rock, AR United States 675,069 14,908,000 1,385,502 Metro Los Angeles, CA United States 12,872, ,270,000 18,333,643 Metro Los Angeles Inland Empire, CA United States 12,872,808 22,913,000 2,129,461 Metro Louisville, KY United States 1,244,696 19,310,000 1,794,610 Metro Memphis, TN United States 1,285,732 35,867,000 3,333,364 Metro Miami/Dade County, FL United States 5,414,772 77,261,000 7,180,390 Metro Milwaukee, WI United States 1,549,308 28,429,000 2,642,100 Metro Minneapolis/St. Paul, MN United States 3,229,878 69,767,000 6,483,922 Metro Nashville, TN United States 1,550,733 32,620,000 3,031,599 Metro New Jersey Central United States 2,347, ,024,000 9,667,658 Metro New Jersey Northern United States 2,137, ,001,000 14,777,045 Metro 8 COLLIERS INTERNATIONAL

11 GLOBAL OFFICE MARKETS MID-YEAR 2009 EXISTING INVENTORY JUNE 2009 MARKET COUNTRY POPULATION SF SM GEOGRAPHIC AREA NORTH AMERICA continued New York, NY Downtown United States 19,006,798 89,744,000 8,340,520 CBD New York, NY Fairfield Co., CT United States 19,006,798 57,371,000 5,331,877 Metro New York, NY Midtown United States 19,006, ,412,000 23,923,048 CBD New York, NY Midtown S. United States 19,006,798 98,339,000 9,139,312 CBD New York, NY Westchester Co. United States 19,006,798 44,229,000 4,110,502 Metro Oakland, CA United States 404,155 32,900,000 3,057,621 Metro Orange County, CA United States 3,029,000 77,207,000 7,175,372 Metro Orlando, FL United States 2,054,574 63,859,000 5,934,851 Metro Philadelphia, PA United States 5,838, ,982,000 14,031,784 Metro Phoenix, AZ United States 4,281, ,439,000 11,843,773 Metro Pleasanton/Walnut Creek, CA United States 130,314 40,207,000 3,736,710 Metro Portland, OR United States 2,207,462 77,330,000 7,186,803 Metro Raleigh/Durham/Chapel Hill. NC United States 1,088,765 44,797,000 4,163,290 Metro Reno, NV United States 414,784 6,725, ,000 Metro Sacramento, CA United States 2,109,832 88,065,000 8,184,480 Metro San Diego County, CA United States 3,001,072 76,956,000 7,152,045 Metro San Francisco, CA United States 4,274,531 82,895,000 7,703,996 CBD San Francisco Peninsula, CA United States 4,274,531 33,478,000 3,111,338 Metro San Jose/Silicon Valley, CA United States 1,819,198 60,264,000 5,600,743 Metro Seattle/Puget Sound, WA United States 3,344, ,456,000 13,146,468 Metro St. Louis, MO United States 2,816,710 50,155,000 4,661,245 Metro Stockton/San Joaquin Co., CA United States 672,388 8,476, ,732 Metro Tampa, FL United States 2,733,761 80,314,000 7,464,126 Metro Washington, DC United States 4,255, ,753,000 10,757,714 CBD Washington, DC N. Virginia United States 4,255, ,397,000 13,977,416 Metro Washington, DC Suburban MD United States 4,255,400 74,101,000 6,886,710 Metro West Palm Beach/Palm Beach Co., FL United States 536,521 38,178,000 3,548,141 Metro ASIA PACIFIC Adelaide Australia 1,040,719 13,371,161 1,242,673 CBD Brisbane Australia 1,676,389 21,136,750 1,964,382 CBD Melbourne Australia 3,371,888 41,739,288 3,879,116 CBD Perth Australia 1,256,035 14,656,616 1,362,139 CBD Sydney Australia 3,641,422 51,032,506 4,742,798 CBD Beijing China 16,330,000 47,165,599 4,383,420 Metro Guangzhou China 7,547,467 18,498,915 1,719,230 CBD Hong Kong China 7,200,000 22,665,048 2,106,417 CBD Shanghai China 14,230,992 34,787,317 3,233,022 CBD Bangalore India 4,301,326 54,020,000 5,020,446 Metro Chennai India 4,343,645 41,200,000 3,828,996 Metro Delhi India 9,879,172 45,930,000 4,268,587 Metro Mumbai India 11,978,450 59,939,000 5,570,539 Metro Jakarta Indonesia 8,222,515 42,034,682 3,906,569 CBD Tokyo Central Wards Japan 8,736, ,362,160 62,766,000 CBD Auckland New Zealand 1,303,068 14,529,088 1,350,287 CBD Wellington New Zealand 448,959 13,127,200 1,220,000 CBD Singapore Singapore 4,483,900 47,081,299 4,375,585 CBD Seoul South Korea 9,820,171 68,041,904 6,323,597 CBD Taipei Taiwan 2,629,269 50,987,530 4,738,618 CBD LATIN AMERICA Buenos Aires Argentina 14,917,900 39,779,559 3,696,985 CBD Rio de Janeiro Brazil 15,420,375 41,502,504 3,857,110 CBD São Paulo Brazil 10,238,500 60,349,096 5,608,652 CBD Santiago Chile 4,656,690 22,280,517 2,070,680 CBD Bogotá Colombia 7,243,698 12,704,676 1,180,732 CBD Mexico City Mexico 14,007,495 55,007,121 5,112,186 Metro Lima Peru 8,445,211 4,465, ,013 Metro COLLIERS INTERNATIONAL 9

12 GLOBAL OFFICE MARKETS MID-YEAR 2009 UNDER CONSTRUCTION JUNE 2009 MARKET COUNTRY SF SM VACANCY RATE JUNE 2008 (%) VACANCY RATE DEC (%) VACANCY RATE JUNE 2009 (%) EUROPE, MIDDLE EAST AND AFRICA (EMEA) Tirana Albania 323,876 30, Vienna Austria 1,829, , Minsk Belarus 100,000 9, Antwerp Belgium 269,000 25, Brussels Belgium 8,608, , Sofia Bulgaria 9,296, , Zagreb Croatia 834,976 77, Prague Czech Republic Copenhagen Denmark 1,614, , Tallinn Estonia 182,920 17, Helsinki Finland 1,076, , Bordeaux France Lyon France 1,076, , Montpellier France 161,400 15, Nantes France 645,600 60,000 Paris France 17,216,000 1,600, Strasbourg France 398,120 37, Toulouse France 1,076, , Berlin Germany 1,076, , Düsseldorf Germany 3,658, , Frankfurt Germany 3,840, , Hamburg Germany 4,842, , Munich Germany 7,854, , Stuttgart Germany 143,108 13, Athens Greece 322,800 30, Budapest Hungary 3,574, , Dublin Ireland 860,800 80, Tel Aviv Israel 538,000 50, Milan Italy 3,873, , Rome Italy 860,800 80, Riga Latvia 723,072 67, Vilnius Lithuania 176,464 16, Amsterdam Netherlands 3,010, , Eindhoven Netherlands 215,200 20, Rotterdam Netherlands 1,226, , The Hague Netherlands 1,439, , Utrecht Netherlands 457,300 42, Oslo Norway 2,108, , Warsaw Poland 2,722, , Lisbon Portugal 2,004, , Bucharest Romania 3,228, , Moscow Russia 40,888,000 3,800, Saint Petersburg Russia 4,088, , Riyadh Saudi Arabia 2,017, , Belgrade Serbia 2,885, , Bratislava Slovakia 1,819, , Cape Town South Africa 107,600 10, Durban South Africa Johannesburg South Africa Pretoria South Africa 215,200 20, Sandton South Africa 2,072, , Madrid Spain 4,304, , Stockholm Sweden 602,560 56, Geneva Switzerland 753,200 70, Zurich Switzerland 1,076, , Istanbul Turkey 789,698 73, Abu Dhabi United Arab Emirates 9,307, , Dubai United Arab Emirates 27,083,243 2,517, COLLIERS INTERNATIONAL

13 GLOBAL OFFICE MARKETS MID-YEAR 2009 UNDER CONSTRUCTION JUNE 2009 MARKET COUNTRY SF SM VACANCY RATE JUNE 2008 (%) VACANCY RATE DEC (%) VACANCY RATE JUNE 2009 (%) EMEA continued Kyiv Ukraine 2,458, , Birmingham United Kingdom 505,800 47, Bristol United Kingdom 515,000 47, Edinburgh United Kingdom 402,000 37, Glasgow United Kingdom 562,199 52, London City United Kingdom 5,333, , London Docklands United Kingdom 733,500 68, London Southbank United Kingdom 978,524 90, London West End United Kingdom 2,646, , Manchester United Kingdom 472,815 43, NORTH AMERICA Calgary, AB Canada 6,459, , Edmonton, AB Canada 751,000 69, Halifax, NS Canada 150,000 13, Kitchener-Waterloo, ON Canada 242,000 22, Montréal, QC Canada Ottawa, ON Canada 360,000 33, Regina, SK Canada Saskatoon, SK Canada 127,000 11, Toronto, ON Canada 6,165, , Vancouver, BC Canada 870,000 80, Victoria, BC Canada 393,000 36, Atlanta, GA United States 3,226, , Bakersfield, CA United States 48,000 4, Baltimore, MD United States 1,183, , Boise, ID United States 318,000 29, Boston, MA United States 2,008, , Charleston, SC United States Charlotte, NC United States 2,676, , Chicago, IL United States 2,693, , Cincinnati, OH United States 1,562, , Cleveland, OH United States 223,000 20, Columbia, SC United States 190,000 17, Columbus, OH United States 337,000 31, Dallas/Fort Worth, TX United States 3,210, , Denver, CO United States 496,000 46, Detroit, MI United States 197,000 18, Fairfield, CA United States Fresno, CA United States 11,000 1, Ft. Lauderdale/Broward Co., FL United States 326,000 30, Greenville, SC United States Hartford, CT United States Honolulu, HI United States Houston, TX United States 4,326, , Indianapolis, IN United States 301,000 27, Jacksonville, FL United States Kansas City, MO-KS United States 521,000 48, Las Vegas, NV United States 324,000 30, Little Rock, AR United States 67,000 6, Los Angeles, CA United States 1,667, , Los Angeles Inland Empire, CA United States 455,000 42, Louisville, KY United States Memphis, TN United States 152,000 14, Miami/Dade County, FL United States 3,466, , Milwaukee, WI United States Minneapolis/St. Paul, MN United States 430,000 39, Nashville, TN United States 604,000 56, New Jersey Central United States 463,000 43, New Jersey Northern United States 158,000 14, COLLIERS INTERNATIONAL 11

14 GLOBAL OFFICE MARKETS MID-YEAR 2009 UNDER CONSTRUCTION JUNE 2009 MARKET COUNTRY SF SM VACANCY RATE JUNE 2008 (%) VACANCY RATE DEC (%) VACANCY RATE JUNE 2009 (%) NORTH AMERICA continued New York, NY Downtown United States 4,600, , New York, NY Fairfield Co., CT United States 975,000 90, New York, NY Midtown United States 1,438, , New York, NY Midtown S. United States 315,000 29, New York, NY Westchester Co. United States Oakland, CA United States 62,000 5, Orange County, CA United States 81,000 7, Orlando, FL United States 827,000 76, Philadelphia, PA United States 1,261, , Phoenix, AZ United States 2,393, , Pleasanton/Walnut Creek, CA United States Portland, OR United States 639,000 59, Raleigh/Durham/Chapel Hill. NC United States 766,000 71, Reno, NV United States Sacramento, CA United States 737,000 68, San Diego County, CA United States 782,000 72, San Francisco, CA United States 418,000 38, San Francisco Peninsula, CA United States San Jose/Silicon Valley, CA United States 1,736, , Seattle/Puget Sound, WA United States 5,043, , St. Louis, MO United States 1,164, , Stockton/San Joaquin Co., CA United States 30,000 2, Tampa, FL United States 267,000 24, Washington, DC United States 6,928, , Washington, DC N. Virginia United States 1,542, , Washington, DC Suburban MD United States 1,245, , West Palm Beach/Palm Beach Co., FL United States 81,000 7, ASIA PACIFIC Adelaide Australia 538,000 50, Brisbane Australia 1,961, , Melbourne Australia 2,551, , Perth Australia 2,575, , Sydney Australia 2,061, , Beijing China 11,509,671 1,069, Guangzhou China 35,509,657 3,300, Hong Kong China 363,657 33, Shanghai China 29,279,768 2,721, Bangalore India 4,736, , Chennai India 4,180, , Delhi India 4,650, , Mumbai India 9,041, , Jakarta Indonesia 7,823, , Tokyo Central Wards Japan 11,459,400 1,065, Auckland New Zealand 753,200 70, Wellington New Zealand 936,120 87, Singapore Singapore 10,021, , Seoul South Korea 7,761, , Taipei Taiwan 1,700, , LATIN AMERICA Buenos Aires Argentina 575,972 53, Rio de Janeiro Brazil 3,186, , São Paulo Brazil 9,211, , Santiago Chile 3,660, , Bogotá Colombia 7,676, , Mexico City Mexico 9,507, , Lima Peru 1,757, , COLLIERS INTERNATIONAL

15 GLOBAL OFFICE MARKETS LOCAL MEASURE/CURRENCY CBD RENTS MID-YEAR 2009 MARKET COUNTRY MEASURE QUOTED TIME CURRENCY UNIT PERIOD EXCHANGE RATE (USD) JUN. 30, 2009 NET RENT GROSS RENT ANNUAL CHG. (%) TOP TOP EUROPE, MIDDLE EAST AND AFRICA (EMEA) Tirana Albania EUR SM Month Vienna Austria EUR SM Month Minsk Belarus EUR SM Month Antwerp Belgium EUR SM Year Brussels Belgium EUR SM Year Sofia Bulgaria EUR SM Month Zagreb Croatia EUR SM Month Prague Czech Republic EUR SM Month Copenhagen Denmark DKK SM Year , , , , Tallinn Estonia EUR SM Month Helsinki Finland EUR SM Month Bordeaux France EUR SM Year Lyon France EUR SM Year Montpellier France EUR SM Year Nantes France EUR SM Year Paris France EUR SM Year Strasbourg France EUR SM Year Toulouse France EUR SM Year Berlin Germany EUR SM Month Düsseldorf Germany EUR SM Month Frankfurt Germany EUR SM Month Hamburg Germany EUR SM Month Munich Germany EUR SM Month Stuttgart Germany EUR SM Month Athens Greece EUR SM Month Budapest Hungary EUR SM Month Dublin Ireland EUR SM Year Tel Aviv Israel ILS SM Month Milan Italy EUR SM Year Rome Italy EUR SM Year Riga Latvia EUR SM Month Vilnius Lithuania EUR SM Month Amsterdam Netherlands EUR SM Year Eindhoven Netherlands EUR SM Year Rotterdam Netherlands EUR SM Year The Hague Netherlands EUR SM Year Utrecht Netherlands EUR SM Year Oslo Norway NOK SM Year , , , , Warsaw Poland EUR SM Month Lisbon Portugal EUR SM Month Bucharest Romania EUR SM Month Moscow Russia USD SM Year , Saint Petersburg Russia USD SM Year Riyadh Saudi Arabia SAR SM Year , , , , Belgrade Serbia EUR SM Month Bratislava Slovakia EUR SM Month Cape Town South Africa ZAR SM Month Durban South Africa ZAR SM Month Johannesburg South Africa ZAR SM Month Pretoria South Africa ZAR SM Month Sandton South Africa ZAR SM Month Madrid Spain EUR SM Month Stockholm Sweden SEK SM Year , , , , Geneva Switzerland CHF SM Year , , Zurich Switzerland CHF SM Year Istanbul Turkey USD SM Month Abu Dhabi United Arab Emirates AED SM Year , , , , Dubai United Arab Emirates AED SM Year , , , , COLLIERS INTERNATIONAL 13

16 GLOBAL OFFICE MARKETS LOCAL MEASURE/CURRENCY CBD RENTS MID-YEAR 2009 MARKET COUNTRY MEASURE QUOTED TIME CURRENCY UNIT PERIOD EXCHANGE RATE (USD) JUN. 30, 2009 EMEA continued Kyiv Ukraine USD SM Month Birmingham United Kingdom GBP SF Year Bristol United Kingdom GBP SF Year Edinburgh United Kingdom GBP SF Year Glasgow United Kingdom GBP SF Year London City United Kingdom GBP SF Year London Docklands United Kingdom GBP SF Year London Southbank United Kingdom GBP SF Year London West End United Kingdom GBP SF Year Manchester United Kingdom GBP SF Year NORTH AMERICA Calgary, AB Canada CAD SF Month Edmonton, AB Canada CAD SF Month Halifax, NS Canada CAD SF Month Kitchener-Waterloo, ON Canada CAD SF Month Montréal, QC Canada CAD SF Month Ottawa, ON Canada CAD SF Month Regina, SK Canada CAD SF Month Saskatoon, SK Canada CAD SF Month Toronto, ON Canada CAD SF Month Vancouver, BC Canada CAD SF Month Victoria, BC Canada CAD SF Month Atlanta, GA United States USD SF Month Bakersfield, CA United States USD SF Month Baltimore, MD United States USD SF Month Boise, ID United States USD SF Month Boston, MA United States USD SF Month Charleston, SC United States USD SF Month Charlotte, NC United States USD SF Month Chicago, IL United States USD SF Month Cincinnati, OH United States USD SF Month Cleveland, OH United States USD SF Month Columbia, SC United States USD SF Month Columbus, OH United States USD SF Month Dallas/Fort Worth, TX United States USD SF Month Denver, CO United States USD SF Month Detroit, MI United States USD SF Month Fresno, CA United States USD SF Month Ft. Lauderdale/Broward Co., FL United States USD SF Month Greenville, SC United States USD SF Month Hartford, CT United States USD SF Month Honolulu, HI United States USD SF Month Houston, TX United States USD SF Month Indianapolis, IN United States USD SF Month Jacksonville, FL United States USD SF Month Kansas City, MO-KS United States USD SF Month Las Vegas, NV United States USD SF Month Little Rock, AR United States USD SF Month Los Angeles, CA United States USD SF Month Louisville, KY United States USD SF Month Memphis, TN United States USD SF Month Miami/Dade County, FL United States USD SF Month Milwaukee, WI United States USD SF Month Minneapolis/St. Paul, MN United States USD SF Month Nashville, TN United States USD SF Month NET RENT GROSS RENT ANNUAL CHG. (%) TOP TOP 14 COLLIERS INTERNATIONAL