COLLIERS INTERNATIONAL. Global Office Real Estate Review Midyear colliers.com

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1 COLLIERS INTERNATIONAL Global Office Real Estate Review Midyear 2008 colliers.com

2 COLLIERS INTERNATIONAL l GLOBAL OFFICE REAL ESTATE REVIEW l MIDYEAR 2008 colliers.com CONTENTS Table of Contents Global Summary and Regional Synopses 1 5 GLOBAL OFFICE MARKETS EMEA* 6 7 North America 7 8 Asia Pacific and Latin America 8 CONSTRUCTION AND VACANCY EMEA 9 10 North America Asia Pacific and Latin America 11 CENTRAL BUSINESS DISTRICT SURVEY EMEA Occupancy Costs North America Occupancy Costs Asia Pacific and Latin America Occupancy Costs 14 EMEA US Dollars Occupancy Costs/Sales Prices/Cap Rates North America US Dollars Occupancy Costs/Sales Prices/Cap Rates Asia Pacific and Latin America US Dollars Occupancy Costs/Sales Prices/Cap Rates 17 SUBURBAN/OUT-OF-TOWN SURVEY EMEA Occupancy Costs North America Occupancy Costs Asia Pacific and Latin America Occupancy Costs 20 EMEA US Dollars Occupancy Costs/Sales Prices/Cap Rates North America US Dollars Occupancy Costs/Sales Prices/Cap Rates Asia Pacific and Latin America US Dollars Occupancy Costs/Sales Prices/Cap Rates 23 Glossary 24 Colliers Office Locations 25 * EMEA Europe/Middle East/Africa REGIONAL 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 Australasia 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. Colliers International 2008

3 OFFICE REAL ESTATE REVIEW l MIDYEAR 2008 Office Markets Brace for Global Economic Slowdown OFFICE CONSTRUCTION TOP 50 CITIES JUNE 2008 Dubai Shanghai Guangzhou Paris Sao Paulo Washington Seoul Moscow Beijing Saint Petersburg Kyiv Calgary Delhi Houston Doha Singapore Jakarta Sofia Tokyo (Central Wards) London City Seattle Mexico City Phoenix Dallas/Ft.Worth Bogota Bucharest Toronto, ON Milan Warsaw Atlanta, GA Bangalore Munich Abu Dhabi Santiago Chicago, IL NewYork, NY - Midtown Manhattan NewYork, NY - Downtown Manhattan Charlotte, NC Brussels Rio de Janeiro Belgrade Miami/Dade County, FL Madrid Budapest Chennai Mumbai Copenhagen Los Angeles, CA Amsterdam London West End UNDER CONSTRUCTION SF MILLION Despite the year long volatility shown in financial markets around the world, many office markets continue to post solid fundamentals. While demand for office space was below the record pace witnessed for much of , the first half of 2008 was back to trend in many markets. Much of Asia Pacific, Central & Eastern Europe, Latin America and the Middle East continued to register robust leasing conditions with lower vacancies and higher rents. Only major financial centers in Western Europe and North America reported signs of weakness. To date, developing economies remain largely unfazed, and continue to show solid growth and a healthy appetite for office space. A similar pattern exists for office building sales, with investment volumes holding up in Asia Pacific but down in much of Europe and North America. Looking forward to the latter half of 2008 and 2009 office markets in all regions are expected to become more subdued as the global economy slows and lenders remain cautious. EUROPE, MIDDLE EAST, AFRICA/EMEA Many European, Middle Eastern and South African office markets continued to post moderate growth in the first half of 2008, although considerable differences now exist. Numerous Western European markets are now characterized by rising vacancy and a corresponding softness in rents, while most Central and Eastern European markets continue to demonstrate robust leasing conditions with few exceptions. Not surprisingly, Middle Eastern office markets continue to show few signs of slowing. South African markets are still registering lower vacancy rates and higher rents. The average EMEA vacancy rate declined again in the first half of 2008, down 10 basis points to average 6.6%. EMEA cities posting a sizable decrease in vacancy included; Doha, Johannesburg, Oslo, St. Petersburg and Zagreb. Despite a lessening in demand, construction stayed relatively robust in many centers. Dubai continued to lead the region (and the world), with 42.0 million square feet currently under construction. Other EMEA markets registering relatively high levels of construction activity include; Paris, Moscow, St. Petersburg, Kyiv, Doha, Sofia and London s City submarket. With a growing number of faltering economies the second half of 2008 could see the first increase in COLLIERS INTERNATIONAL 1

4 COLLIERS INTERNATIONAL l GLOBAL OFFICE REAL ESTATE REVIEW l MIDYEAR 2008 EMEA office vacancy rates in almost four years. EMEA office rental growth began to show signs of faltering, with a number of key markets posting declines over the first six months of the year. London City rents fell 6.8%, while Paris dropped 5.2% and Frankfurt registered a 7.4% decline. However, several Central & Eastern European and Middle Eastern markets experienced impressive rental growth, with Abu Dhabi, Bratislava, Doha, Dubai, Kyiv, Moscow, St. Petersburg and Warsaw all seeing rents increase by over 10% since year-end With the latest increases and decreases, the top three cities for office occupancy costs in the EMEA region are London, Moscow and Kyiv. Vacancy Rate Percent EMEA VACANCY RATES Vacancy Rate Percent Vacancy Rate Percent GLOBAL VACANCY RATES NORTH AMERICA VACANCY RATES EMEA Asia Pacific US Latin America London- West End Paris Frankfurt Moscow Canada NY Midtown Toronto San Francisco ASIA PACIFIC The Asia Pacific region posted uneven results during the first half of the year with the regional vacancy rate decreasing by 20 basis points to register 7.9%. This decrease, however, was after the region s vacancy rate jumped by a full percent in The drop in vacancies during the first half of the year were largely the result of most Australian, Chinese and New Zealand markets reporting substantial lower vacancies compared with that reported at the beginning of the year. Most major financial centers such as Hong Kong, Singapore, Tokyo, Shanghai and Sydney, however, showed more vacancy than six months ago with Hong Kong the only exception with a 20 basis point decline. Perth again posted the region s (and world s) lowest vacancy rate* of just 0.3%. Office rents within the region generally maintained an upward trend with just three exceptions. Tokyo, Singapore and Seoul all registered declines in rents ranging from 3% to 19%. The Asia Pacific region remains characterized by high levels of office construction with Beijing, Delhi, Guangzhou, Seoul and Shanghai all with at least 10 million square feet of construction currently underway totaling 99 million square feet. On the demand side, most economies across the region are expected to continue posting very high growth rates, although not at levels witnessed for the past several years. In a ranking of highest occupancy costs (average Class A gross rents), Hong Kong took top spot, both within the region and the world at $ USD per square foot, with Tokyo second in the region (6th spot worldwide) at $ USD per square foot. * With city population of 1,000, COLLIERS INTERNATIONAL

5 COLLIERS INTERNATIONAL l GLOBAL OFFICE REAL ESTATE REVIEW l MIDYEAR 2008 UNITED STATES/CANADA The US office market turned decidedly weaker in the first half of 2008 as companies gave back space and economic conditions worsened. Combined with relatively high levels of construction the overall vacancy rate increased 60 basis points to average 13.2%. Rents began to reflect weakness in the general economy with downtown leasing rates up marginally, while suburban lease rates held steady. Looking forward, office space fundamentals are sure to weaken as new supply is anticipated to stay relatively high for the next six to twelve months and demand is expected to remain subdued well into next year. Business confidence is unlikely to return before financial markets show more stability keeping decision-makers cautious and perpetuating a wait-and-see attitude. Financial services and all sectors related to the housing industry will remain key sources of weakness in the coming months, and particular attention needs to be applied to the labor market, specifically white collar employment. With a relatively uncertain business environment, the office space Vacancy Rate Percent Vacancy Rate Percent ASIA PACIFIC VACANCY RATES LATIN AMERICA VACANCY RATES Hong Kong Shanghai Sydney Tokyo Mexico City Sao Paulo Buenos Aires Bogota market is highly unlikely to show any signs of expansion until well into Canadian markets, by comparison, continued to show growth, albeit modest by recent standards. Vacancies continued to drift lower; however, rents began to show signs of weakening in the face of a slowing Canadian economy. Midtown Manhattan continued to hold the top spot for North American office occupancy costs with average Class A rents at $97.00 USD per square foot. GLOBAL OFFICE OCCUPANCY COSTS TOP 50 Hong Kong London West End Moscow London City Kyiv Tokyo (Central Wards) Singapore Mumbai London Docklands Delhi Midtown Manhattan Dublin Dubai Saint Petersburg Rio de Janeiro Paris Doha Perth Abu Dhabi Birmingham Stockholm Bristol Edinburgh Sao Paulo Sydney Glasgow Manchester Brisbane Madrid Boston, MA Midtown S. Manhattan Milan Oslo Downtown Manhattan Geneva Warsaw Calgary,AB Berlin Rome San Francisco, CA Munich Shanghai Toronto, ON Washington, DC Buenos Aires Frankfurt Beijing Hamburg Zurich Edmonton,AB CLASS A/PRIME SPACE PSF USD COLLIERS INTERNATIONAL 3

6 COLLIERS INTERNATIONAL l GLOBAL OFFICE REAL ESTATE REVIEW l MIDYEAR 2008 COUNTRY GROWTH RATES (%) GROSS DOMESTIC PRODUCT (GDP) Countries (Ranked By 2008) 2008P 2009F China Peru India Slovakia Russia Saudi Arabia Argentina Malaysia Indonesia Lithuania Poland Singapore Czech Republic Hong Kong Philippines Brazil Colombia Turkey South Korea Taiwan Israel Chile South Africa Australia Greece Finland Norway Netherlands Latvia Austria Mexico Hungary Switzerland Germany Sweden Spain Belgium France United States Britain Japan Canada Denmark New Zealand Italy Ireland Estonia Bold = G7 Countries P = Projected F = Forecast Source: Economist.com August 21, 2008 LATIN AMERICA The Latin America region continued its remarkable run of strength, with still lower vacancies and higher rents across almost all markets. The regional office vacancy rate fell by 170 basis points during the first half of 2008 to average 2.1%, with Lima once again posting a decidedly lower vacancy rate. Rents were generally higher across the region, with Bogota in particular seeing a strong surge in asking rates. Office construction remains concentrated in Bogotá, Mexico City and Sao Paulo with 29.0 million square feet currently underway. For these three cities this represents a 118% increase from construction underway at the end of 2007, and may spell relief in the coming months for tenants currently unable to find office premises. Rio de Janeiro took top spot as the most expensive office market in the region with average Class A gross rents of $90.00 USD per square foot. GLOBAL INVESTMENT SALES Far fewer office buildings traded hands in the first six months of 2008 relative to the corresponding period in Prices moved lower as capitalization rates/ yields shifted higher in all regions of the world. The welldocumented credit crunch, combined with a more sluggish global economy, put a considerable damper on investment sales with investors pulling back and lenders tightening underwriting standards. Deleveraging across almost all asset classes including real estate put considerable downward pressure on prices, as banks across the globe struggled to strengthen their respective balance sheets and prepare for a period of illiquidity. Office fundamentals also started to waiver in the face of weakened demand particularly from the financial services sector. While the global trend was down, regional differences were apparent. Asia Pacific fared considerably better than either the Americas or Europe. Global office investment fell by 60% (-41% excluding portfolio sales) during the first half of the year, falling from $268.6 billion a year ago to $108.0 billion during the first six months of 2008, however, a number of Asia Pacific markets posted substantial volume increases. Japan in particular saw office 4 COLLIERS INTERNATIONAL

7 COLLIERS INTERNATIONAL l GLOBAL OFFICE REAL ESTATE REVIEW l MIDYEAR 2008 transactions increase by 103%, followed by Hong Kong up 86% and Singapore up 58%. China did, however, register a drop of 16%. Within Europe, Spain and The Netherlands saw office transactions increase by 77% and 14% respectively, while Germany, the UK and France all witnessed significantly less investment sales activity. London in particular saw office transactions fall 64%. The most active office investment sales market in the world remained the US, however, sales volume dropped by 69% to $28.6 billion. Canada also saw a significant drop off in office sales. 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. Key financial centers were particularly hard hit during the first six months of the year, with London s West End submarket registering a dramatic outward movement in cap rates. At mid-year West End cap rates averaged 6.00% compared with 4.75% at the end of Paris and Frankfurt also saw cap rates increase, rising by 100 and 37 basis points respectively. In Asia Pacific cap rate movements were more mixed. In Tokyo cap rates increased by 40 basis points, while Sydney yields were up by 110 basis points. By comparison, Singapore cap rates were up just five basis points and Hong Kong up 17. In North America, New York s Midtown Manhattan market saw cap rates jump 100 basis points, while in Canada, downtown Toronto cap rates increased by 30 basis points. GLOBAL INVESTMENT TRANSACTIONS Germany US UK France China Netherlands Singapore Spain Hong Kong Japan CHANGE IN OFFICE SALES FIRST HALF 2007 VERSUS FIRST HALF 2008 (PERCENT $ VOL.) Source: Real Capital Analytics Going forward cap rates are expected to drift higher as fundamentals weaken and credit markets remain fragile. Ross J. Moore Executive Vice President, Market and Economic Research Colliers International USA, ross.moore@colliers.com GLOBAL CAPITALIZATION RATES/INITIAL YIELDS 50 LOWEST Hong Kong Vienna Tokyo (Central Wards) Munich Frankfurt Geneva Zurich Dublin Milan Stockholm Taipei Copenhagen Paris Los Angeles, CA NewYork, NY - Midtown Manhattan Helsinki Stuttgart Berlin Düsseldorf Rome Belfast Madrid London Docklands Hamburg Calgary,AB Vancouver, BC NewYork, NY - Downtown Manhattan NewYork, NY - Midtown S. Manhattan Guangzhou Brussels Santa Rosa, CA Warsaw Washington, DC Birmingham Bristol Edinburgh Glasgow Manchester Bordeaux Lyon Oslo Miami/Dade County, FL Antwerp London City London West End Montreal, QC Toronto, ON Pleasanton/Walnut Creek, CA San Francisco, CA Sydney PERCENT COLLIERS INTERNATIONAL 5

8 OFFICE MARKETS EXISTING INVENTORY JUNE 2008 GEOGRAPHIC CITY COUNTRY POPULATION SF SM AREA EUROPE, MIDDLE EAST, AFRICA (EMEA) Tirana Albania 343, ,356 53,100 CBD Vienna Austria 1,694, ,360,000 11,000,000 CBD Antwerp Belgium 469,000 21,520,000 2,000,000 Metro Brussels Belgium 1,040, ,880,000 13,000,000 Metro Sofia Bulgaria 1,126,000 8,166, ,000 Metro Zagreb Croatia 703,000 10,114, ,000 Metro Prague Czech Republic 1,181,000 24,664,072 2,292,200 CBD Copenhagen Denmark 1,083, ,436,000 11,100,000 Metro Tallinn Estonia 395,000 3,798, ,000 Metro Helsinki Finland 1,263,000 85,004,000 7,900,000 Metro Bordeaux France 230, Metro Lyon France 1,430, Metro Montpellier France 248, Metro Nantes France 281,800 3,032, ,800 Metro Paris France 11,819, ,240,000 49,000,000 Metro Strasbourg France 2,335, Metro Toulouse France 374, Metro Berlin Germany 4,041, ,756,000 18,100,000 Metro Düsseldorf Germany 1,319,000 77,256,800 7,180,000 Metro Frankfurt Germany 3,134, ,360,000 11,000,000 CBD Hamburg Germany 3,267, ,436,800 12,680,000 Metro Munich Germany 2,312, ,232,400 21,490,000 Metro Stuttgart Germany 2,335,000 78,225,200 7,270,000 Metro Athens Greece 3,829,000 54,876,000 5,100,000 Metro Budapest Hungary 2,579,000 21,403,028 1,989,129 Metro Dublin Ireland 1,058,000 32,280,000 3,000,000 Metro Tel Aviv Israel 3,268,000 26,362,000 2,450,000 Metro Milan Italy 1,321, ,120,000 12,000,000 Metro Rome Italy 2,513,000 96,840,000 9,000,000 Metro Riga Latvia 808,000 2,711, ,000 Metro Kaunas Lithuania 358, ,016 31,600 Metro Klaipeda Lithuania 186, ,460 58,500 Metro Vilnius Lithuania 544,000 2,022, ,000 Metro Podgorica Montenegro 136, CBD Belfast N. Ireland ,500, ,026 Metro Amsterdam Netherlands 749,000 72,092,000 6,700,000 CBD Eindhoven Netherlands 242,000 15,064,000 1,400,000 CBD Rotterdam Netherlands 794,000 37,660,000 3,500,000 CBD The Hague Netherlands 720,000 49,496,000 4,600,000 CBD Utrecht Netherlands 266,000 26,900,000 2,500,000 CBD Oslo Norway 847, CBD Warsaw Poland 1,598,000 30,558,400 2,840,000 Metro Doha Qatar 761,000 3,014, ,165 CBD Bucharest Romania 1,874,000 7,908, ,000 Metro Moscow Russia 10,556,000 88,027,560 8,181,000 Metro Saint Petersburg Russia 4,821,000 7,854, ,000 Metro Belgrade Serbia 1,125,000 8,285, ,000 Metro Bratislava Slovakia 419,000 11,836,000 1,100,000 CBD Cape Town South Africa 4,715,000 8,102, ,020 CBD Durban South Africa 3,347,000 7,456, ,973 CBD Johannesburg South Africa 7,586,000 17,376,948 1,614,958 CBD Pretoria South Africa 2,253,000 5,079, ,061 CBD Sandton South Africa 126,000 13,621,245 1,265,915 CBD Madrid Spain 6,271, ,980,000 10,500,000 Metro Stockholm Sweden 1,738,000 17,538,800 1,630,000 CBD Geneva Switzerland 615,000 46,268,000 4,300,000 Metro Zurich Switzerland 1,025, ,891,200 10,120,000 Metro 6 COLLIERS INTERNATIONAL

9 OFFICE MARKETS EXISTING INVENTORY JUNE 2008 GEOGRAPHIC CITY COUNTRY POPULATION SF SM AREA EUROPE, MIDDLE EAST, AFRICA (EMEA) CONTINUED Istanbul Turkey 12,488,000 14,228,335 1,322,336 Metro Abu Dhabi UAE 860,000 16,871,680 1,568,000 Metro Dubai UAE 2,262,000 26,362,000 2,450,000 CBD Kyiv Ukraine 2,500,000 9,522, ,000 Metro Birmingham United Kingdom 3,221,000 14,183,228 1,318,144 CBD Bristol United Kingdom 421,000 10,900,000 1,013,011 CBD Edinburgh United Kingdom 436,000 7,900, ,201 CBD Glasgow United Kingdom 631,000 13,466,475 1,251,531 CBD London City United Kingdom 12,577,000 91,026,113 8,459,676 CBD London Docklands United Kingdom 12,577,000 17,898,000 1,663,383 CBD London West End United Kingdom 12,577,000 75,712,000 7,036,431 CBD Manchester United Kingdom 2,245,000 16,159,000 1,501,766 CBD NORTH AMERICA Calgary, AB Canada 994,000 53,169,629 4,941,415 Metro Edmonton, AB Canada 1,102,000 17,588,787 1,634,646 Metro Halifax, NS Canada 283,000 10,470, ,050 Metro Montreal, QC Canada 3,525,000 71,724,135 6,665,812 Metro Ottawa, ON Canada 1,064,000 34,294,818 3,187,251 Metro Regina, SK Canada 179,000 4,158, ,523 Metro Saskatoon, SK Canada 202,000 1,799, ,262 Metro Toronto, ON Canada 4,912, ,584,244 16,782,922 Metro Vancouver, BC Canada 2,126,000 51,849,650 4,818,741 Metro Victoria, BC Canada 305,000 7,976, ,269 Metro Atlanta, GA United States 4,112, ,461,765 21,418,380 Metro Bakersfield, CA United States 396,000 8,656, ,531 Metro Baltimore, MD United States 2,076,000 66,878,659 6,215,489 Metro Boise, ID United States 273,000 13,328,001 1,238,662 Metro Boston, MA United States 3,407, ,070,888 14,411,793 Metro Charleston, SC United States 183,000 42,059,773 3,908,901 Metro Charlotte, NC United States 759,000 71,661,948 6,660,032 Metro Chicago, IL United States 8,273, ,160,816 21,855,094 Metro Cincinnati, OH United States 1,503,000 31,714,017 2,947,399 Metro Cleveland, OH United States 2,246,000 95,083,920 8,836,796 Metro Columbia, SC United States 99,000 8,950, ,820 Metro Columbus, OH United States 50,000 26,426,035 2,455,951 Metro Dallas/Ft.Worth,TX United States 5,222, ,265,678 26,325,807 Metro Denver, CO United States 2,109, ,019,985 10,689,590 Metro Detroit, MI United States 4,472, ,910,698 11,887,611 Metro Fairfield, CA United States 112,000 3,553, ,209 Metro Fresno, CA United States 555,000 20,526,134 1,907,633 Metro Ft. Lauderdale/Broward County, FL United States 190,000 44,541,903 4,139,582 Metro Greenville, SC United States 84,000 7,476, ,800 Metro Hartford, CT United States 852,000 24,323,738 2,260,570 Metro Honolulu, HI United States 718,000 15,706,083 1,459,673 Metro Houston,TX United States 5,505, ,529,011 17,056,600 Metro Indianapolis, IN United States 1,219,000 31,244,838 2,903,795 Metro Jacksonville, FL United States 1,278,000 39,106,624 3,634,445 Metro Kansas City, MO-KS United States 1,967,000 45,992,000 4,274,349 Metro Las Vegas, NV United States 1,778,000 39,149,494 3,638,429 Metro Little Rock, AR United States 360,000 12,939,040 1,202,513 Metro Los Angeles, CA United States 9,519, ,276,600 16,940,204 Metro Louisville, KY United States 864,000 18,191,273 1,690,639 Metro Memphis,TN United States 1,275,000 37,042,142 3,442,578 Metro Miami/Dade County, FL United States 2,253,000 62,784,643 5,835,004 Metro Milwaukee,WI United States 1,309,000 56,791,785 5,278,047 Metro Minneapolis/St. Paul, MN United States 3,045,000 68,276,081 6,345,361 Metro Nashville,TN United States 750,000 30,585,095 2,842,481 Metro CBD Central Business District Metro Metropolitan Area COLLIERS INTERNATIONAL 7

10 OFFICE MARKETS EXISTING INVENTORY JUNE 2008 GEOGRAPHIC CITY COUNTRY POPULATION SF SM AREA NORTH AMERICA CONTINUED New Jersey - Central United States - 103,659,275 9,633,762 Metro New Jersey - Northern United States - 158,404,667 14,721,623 Metro New York - Fairfield County, CT United States - 57,370,862 5,331,864 Metro New York - Westchester County, NY United States - 44,228,655 4,110,470 Metro New York, NY - Downtown Manhattan United States 9,314,000 89,743,730 8,340,495 CBD New York, NY - Midtown Manhattan United States 9,314, ,882,555 23,687,970 CBD New York, NY - Midtown S. Manhattan United States 9,314,000 98,339,499 9,139,359 CBD Oakland, CA United States 401,000 29,260,725 2,719,398 Metro Orange County, CA United States 3,029,000 75,473,900 7,014,303 Metro Orlando, FL United States 1,157,000 60,902,276 5,660,063 Metro Philadelphia, PA United States 5,101, ,626,907 13,905,846 Metro Phoenix, AZ United States 3,687, ,601,374 11,208,306 Metro Pleasanton/Walnut Creek, CA United States ,858,273 1,938,501 Metro Portland, OR United States 1,583,000 73,336,524 6,815,662 Metro Raleigh/Durham/Chapel Hill, NC United States 995,000 43,552,352 4,047,616 Metro Reno, NV United States 304,000 6,591, ,556 Metro Sacramento, CA United States 1,394,000 81,757,355 7,598,267 Metro San Diego County, CA United States 2,933,000 74,596,984 6,932,805 Metro San Francisco Pen./San Mateo County, CA United States - 32,830,395 3,051,152 Metro San Francisco, CA United States 1,731,000 81,873,424 7,609,054 CBD San Jose/Silicon Valley, CA United States 1,683,000 58,750,393 5,460,074 Metro Santa Rosa/Sonoma County, CA United States 285,000 9,550, ,606 Metro Seattle,WA United States 2,415,000 90,043,314 8,368,338 Metro St. Louis, MO United States 2,647,000 49,440,000 4,594,796 Metro Stockton/San Joaquin County, CA United States 313,000 7,074, ,525 Metro Tampa, FL United States 2,062,000 77,596,092 7,211,533 Metro Washington, DC United States 4,923, ,633,908 31,192,742 Metro West Palm Beach/Palm Beach County, FL United States 99,000 34,133,433 3,172,252 Metro ASIA PACIFIC Adelaide Australia 1,073,000 12,910,408 1,199,852 CBD Brisbane Australia 1,508,000 19,273,968 1,791,261 CBD Melbourne Australia 3,500,000 39,701,936 3,689,771 CBD Perth Australia 1,340,000 13,848,992 1,287,081 CBD Sydney Australia 4,232,000 50,435,273 4,687,293 CBD Beijing China 13,833,000 34,093,942 3,168,582 CBD Guangzhou China 6,560,000 51,159,905 4,754,638 CBD Hong Kong China 6,901,000 23,141,309 2,150,679 CBD Shanghai China 17,780,000 40,735,165 3,785,796 CBD Bangalore India 5,687,000 46,970,000 4,365,242 Metro Chennai India 6,425,000 35,000,000 3,252,788 Metro Delhi India 12,792,000 38,445,000 3,572,955 Metro Mumbai India 16,368,000 28,100,000 2,611,524 Metro Jakarta Indonesia 8,756,000 40,022,939 3,719,604 CBD Tokyo (Central Wards) Japan 12,290, ,313,000 61,925,000 CBD Auckland New Zealand 1,100,000 14,181,680 1,318,000 CBD Wellington New Zealand 400,000 15,709,600 1,460,000 CBD Singapore Singapore 4,164,000 46,758,382 4,345,575 CBD Seoul South Korea 11,000,000 74,538,609 6,927,380 CBD Taipei Taiwan 2,626,000 50,632,524 4,705,625 CBD LATIN AMERICA Buenos Aires Argentina 11,900,000 38,758,209 3,602,064 CBD Rio de Janeiro Brazil 11,226,000 40,874,754 3,798,769 CBD Sao Paulo Brazil 18,628,000 54,758,834 5,089,111 CBD Santiago Chile 4,657,000 21,835,548 2,029,326 CBD Bogota Colombia 6,261,000 11,122,074 1,033,650 CBD Mexico City Mexico 16,900,000 57,736,847 5,365,878 Metro Lima Peru 7,195,000 4,264, ,311 Metro 8 COLLIERS INTERNATIONAL

11 OFFICE MARKETS UNDER CONSTRUCTION JUNE 2008 VACANCY RATE VACANCY RATE VACANCY RATE CITY COUNTRY SF SM JUNE 2007 (%) DECEMBER 2007 (%) JUNE 2008 (%) EUROPE, MIDDLE EAST, AFRICA (EMEA) Tirana Albania 322,800 30, Vienna Austria 2,690, , Antwerp Belgium 1,614, , Brussels Belgium 4,465, , Sofia Bulgaria 7,855, , Zagreb Croatia 834,976 77, Prague Czech Republic 1,614, , Copenhagen Denmark 3,766, , Tallinn Estonia 1,735, , Helsinki Finland 1,183, , Bordeaux France Lyon France Montpellier France Nantes France Paris France 18,561,000 1,725, Strasbourg France Toulouse France Berlin Germany 1,936, , Düsseldorf Germany 602,560 56, Frankfurt Germany 3,012, , Hamburg Germany 2,313, , Munich Germany 5,022, , Stuttgart Germany 1,345, , Athens Greece 2,152, , Budapest Hungary 4,227, , Dublin Ireland 3,228, , Tel Aviv Israel 1,076, , Milan Italy 5,380, , Rome Italy 1,614, , Riga Latvia 1,796, , Kaunas Lithuania 64,560 6, Klaipeda Lithuania 147,412 13, Vilnius Lithuania 1,829, , Podgorica Montenegro 430,400 40, Belfast N. Ireland 400,000 37, Amsterdam Netherlands 3,668, , Eindhoven Netherlands 567,913 52, Rotterdam Netherlands 3,440, , The Hague Netherlands 1,246, , Utrecht Netherlands 1,247, , Oslo Norway Warsaw Poland 5,380, , Doha Qatar 9,061, , Bucharest Romania 5,627, , Moscow Russia 12,912,000 1,200, Saint Petersburg Russia 12,226,975 1,136, Belgrade Serbia 4,357, , Bratislava Slovakia 1,076, , Cape Town South Africa 408,880 38, Durban South Africa 73,502 6, Johannesburg South Africa 147,498 13, Pretoria South Africa Sandton South Africa 1,711, , Madrid Spain 4,304, , Stockholm Sweden 925,360 86, Geneva Switzerland 1,076, , Zurich Switzerland 538,000 50, COLLIERS INTERNATIONAL 9

12 OFFICE MARKETS UNDER CONSTRUCTION JUNE 2008 VACANCY RATE VACANCY RATE VACANCY RATE CITY COUNTRY SF SM JUNE 2007 (%) DECEMBER 2007 (%) JUNE 2008 (%) EUROPE, MIDDLE EAST, AFRICA (EMEA) CONTINUED Istanbul Turkey 3,404, , Abu Dhabi UAE 5,003, , Dubai UAE 41,964,000 3,900, Kyiv Ukraine 12,158,800 1,130, Birmingham United Kingdom 1,311, , Bristol United Kingdom 359,122 33, Edinburgh United Kingdom 610,000 56, Glasgow United Kingdom 916,480 85, London City United Kingdom 7,241, , London Docklands United Kingdom 1,556, , London West End United Kingdom 3,500, , Manchester United Kingdom 1,071,935 99, NORTH AMERICA Calgary, AB Canada 11,885,000 1,104, Edmonton, AB Canada 1,029,000 95, Halifax, NS Canada 400,000 37, Montreal, QC Canada 568,000 52, Ottawa, ON Canada 1,587, , Regina, SK Canada 136,000 12, Saskatoon, SK Canada 178,000 16, Toronto, ON Canada 5,418, , Vancouver, BC Canada 787,000 73, Victoria, BC Canada 229,000 21, Atlanta, GA United States 5,338, , Bakersfield, CA United States 185,000 17, Baltimore, MD United States 2,905, , Boise, ID United States 131,000 12, Boston, MA United States 2,651, , Charleston, SC United States 50,000 4, Charlotte, NC United States 4,489, , Chicago, IL United States 4,842, , Cincinnati, OH United States 1,808, , Cleveland, OH United States 370,000 34, Columbia, SC United States 125,000 11, Columbus, OH United States 1,361, , Dallas/Ft.Worth,TX United States 6,340, , Denver, CO United States 3,232, , Detroit, MI United States 155,000 14, Fairfield, CA United States Fresno, CA United States 773,000 71, Ft. Lauderdale/Broward County, FL United States 504,000 46, Greenville, SC United States 60,000 5, Hartford, CT United States 57,000 5, Honolulu, HI United States 45,000 4, Houston,TX United States 9,699, , Indianapolis, IN United States 400,000 37, Jacksonville, FL United States 110,000 10, Kansas City, MO-KS United States 874,000 81, Las Vegas, NV United States 1,323, , Little Rock, AR United States 113,000 10, Los Angeles, CA United States 3,703, , Louisville, KY United States 90,000 8, Memphis,TN United States 433,000 40, Miami/Dade County, FL United States 4,316, , Milwaukee,WI United States Minneapolis/St. Paul, MN United States 2,157, , Nashville,TN United States 2,287, , COLLIERS INTERNATIONAL

13 OFFICE MARKETS UNDER CONSTRUCTION JUNE 2008 VACANCY RATE VACANCY RATE VACANCY RATE CITY COUNTRY SF SM JUNE 2007 (%) DECEMBER 2007 (%) JUNE 2008 (%) NORTH AMERICA CONTINUED New Jersey - Central United States 1,329, , New Jersey - Northern United States 550,000 51, New York - Fairfield County, CT United States 1,272, , New York - Westchester County, NY United States New York, NY - Downtown Manhattan United States 4,600, , New York, NY - Midtown Manhattan United States 4,730, , New York, NY - Midtown S. Manhattan United States Oakland, CA United States 172,000 15, Orange County, CA United States 170,000 15, Orlando, FL United States 1,948, , Philadelphia, PA United States 551,000 51, Phoenix, AZ United States 6,865, , Pleasanton/Walnut Creek, CA United States 321,000 29, Portland, OR United States 1,964, , Raleigh/Durham/Chapel Hill, NC United States 2,318, , Reno, NV United States Sacramento, CA United States 2,233, , San Diego County, CA United States 2,025, , San Francisco Pen./San Mateo County, CA United States San Francisco, CA United States 2,340, , San Jose/Silicon Valley, CA United States 1,966, , Santa Rosa/Sonoma County, CA United States 230,000 21, Seattle,WA United States 7,235, , St. Louis, MO United States 993,000 92, Stockton/San Joaquin County, CA United States 112,000 10, Tampa, FL United States 1,567, , Washington, DC United States 14,015,000 1,302, West Palm Beach/Palm Beach County, FL United States 586,000 54, ASIA PACIFIC Adelaide Australia 910,253 84, Brisbane Australia 2,797, , Melbourne Australia Perth Australia 2,499, , Sydney Australia 1,258, , Beijing China 12,347,444 1,147, Guangzhou China 19,764,517 1,836, Hong Kong China 31,220 2, Shanghai China 41,631,505 3,869, Bangalore India 5,095, , Chennai India 4,000, , Delhi India 11,680,000 1,085, Mumbai India 3,800, , Jakarta Indonesia 8,584, , Tokyo (Central Wards) Japan 7,811, , Auckland New Zealand 451,920 42, Wellington New Zealand 925,360 86, Singapore Singapore 8,632, , Seoul South Korea 13,357,658 1,241, Taipei Taiwan 2,217, , LATIN AMERICA Buenos Aires Argentina 708,438 65, Rio de Janeiro Brazil 4,402, , Sao Paulo Brazil 15,567,460 1,446, Santiago Chile 4,867, , Bogota Colombia 6,304, , Mexico City Mexico 7,130, , Lima Peru 1,237, , COLLIERS INTERNATIONAL 11

14 OFFICE MARKETS LOCAL MEASURE/CURRENCY CBD RENTS JUNE 2008 MEASURE QUOTED TIME CLASS A CLASS A TOP CLASS A TOP CLASS A CITY COUNTRY CURRENCY PERIOD UNIT NET RENT GROSS RENT NET RENT GROSS RENT EUROPE, MIDDLE EAST, AFRICA (EMEA) Tirana Albania EUR Month SM Vienna Austria EUR Month SM Antwerp Belgium EUR Year SM Brussels Belgium EUR Year SM Sofia Bulgaria EUR Month SM Zagreb Croatia EUR Month SM Prague Czech Republic EUR Month SM Copenhagen Denmark DKK Year SM 1, , , , Tallinn Estonia EUR Month SM Helsinki Finland EUR Month SM Bordeaux France EUR Month SM Lyon France EUR Month SM Montpellier France EUR Month SM Nantes France EUR Month SM Paris France EUR Year SM Strasbourg France EUR Month SM Toulouse France EUR Month SM Berlin Germany EUR Month SM Düsseldorf Germany EUR Month SM Frankfurt Germany EUR Month SM Hamburg Germany EUR Month SM Munich Germany EUR Month SM Stuttgart Germany EUR Month SM Athens Greece EUR Month SM Budapest Hungary EUR Month SM Dublin Ireland EUR Year SM Tel Aviv Israel ILS Month SM Milan Italy EUR Year SM Rome Italy EUR Year SM Riga Latvia EUR Month SM Kaunas Lithuania EUR Month SM Klaipeda Lithuania EUR Month SM Vilnius Lithuania EUR Month SM Podgorica Montenegro EUR Month SM Belfast N. Ireland GBP Year SF Amsterdam Netherlands EUR Year SM Eindhoven Netherlands EUR Year SM Rotterdam Netherlands EUR Year SM The Hague Netherlands EUR Year SM Utrecht Netherlands EUR Year SM Oslo Norway NOK Year SM 3, , , , Warsaw Poland EUR Month SM Doha Qatar QAR Month SM Bucharest Romania EUR Month SM Moscow Russia USD Year SM 1, , , , Saint Petersburg Russia USD Year SM , , Belgrade Serbia EUR Month SM Bratislava Slovakia EUR Month SM Cape Town South Africa ZAR Month SM Durban South Africa ZAR Month SM Johannesburg South Africa ZAR Month SM Pretoria South Africa ZAR Month SM Sandton South Africa ZAR Month SM Madrid Spain EUR Month SM Stockholm Sweden SEK Year SM 4, , , , Geneva Switzerland CHF Year SM , , Zurich Switzerland CHF Year SM COLLIERS INTERNATIONAL

15 OFFICE MARKETS LOCAL MEASURE/CURRENCY CBD RENTS JUNE 2008 MEASURE QUOTED TIME CLASS A CLASS A TOP CLASS A TOP CLASS A CITY COUNTRY CURRENCY PERIOD UNIT NET RENT GROSS RENT NET RENT GROSS RENT EUROPE, MIDDLE EAST, AFRICA (EMEA) CONTINUED Istanbul Turkey EUR Month SM Abu Dhabi UAE AED Year SM 2, , , , Dubai UAE AED Year SM 3, , , , Kyiv Ukraine USD Month SM Birmingham United Kingdom GBP Year SF Bristol United Kingdom GBP Year SF Edinburgh United Kingdom GBP Year SF Glasgow United Kingdom GBP Year SF London City United Kingdom GBP Year SF London Docklands United Kingdom GBP Year SF London West End United Kingdom GBP Year SF Manchester United Kingdom GBP Year SF NORTH AMERICA Calgary, AB Canada CAD Year SF Edmonton, AB Canada CAD Year SF Halifax, NS Canada CAD Year SF Montreal, QC Canada CAD Year SF Ottawa, ON Canada CAD Year SF Regina, SK Canada CAD Year SF Saskatoon, SK Canada CAD Year SF Toronto, ON Canada CAD Year SF Vancouver, BC Canada CAD Year SF Victoria, BC Canada CAD Year SF Atlanta, GA United States USD Year SF Bakersfield, CA United States USD Year SF Baltimore, MD United States USD Year SF Boise, ID United States USD Year SF Boston, MA United States USD Year SF Charleston, SC United States USD Year SF Charlotte, NC United States USD Year SF Chicago, IL United States USD Year SF Cincinnati, OH United States USD Year SF Cleveland, OH United States USD Year SF Columbia, SC United States USD Year SF Columbus, OH United States USD Year SF Dallas/Ft.Worth,TX United States USD Year SF Denver, CO United States USD Year SF Detroit, MI United States USD Year SF Fairfield, CA United States USD Year SF Fresno, CA United States USD Year SF Ft. Lauderdale/Broward County, FL United States USD Year SF Greenville, SC United States USD Year SF Hartford, CT United States USD Year SF Honolulu, HI United States USD Year SF Houston,TX United States USD Year SF Indianapolis, IN United States USD Year SF Jacksonville, FL United States USD Year SF Kansas City, MO-KS United States USD Year SF Las Vegas, NV United States USD Year SF Little Rock, AR United States USD Year SF Los Angeles, CA United States USD Year SF Louisville, KY United States USD Year SF Memphis,TN United States USD Year SF Miami/Dade County, FL United States USD Year SF Milwaukee,WI United States USD Year SF Minneapolis/St. Paul, MN United States USD Year SF Nashville,TN United States USD Year SF COLLIERS INTERNATIONAL 13

16 OFFICE MARKETS LOCAL MEASURE/CURRENCY CBD RENTS JUNE 2008 MEASURE QUOTED TIME CLASS A CLASS A TOP CLASS A TOP CLASS A CITY COUNTRY CURRENCY PERIOD UNIT NET RENT GROSS RENT NET RENT GROSS RENT NORTH AMERICA CONTINUED New Jersey - Central United States USD Year SF New Jersey - Northern United States USD Year SF New York - Fairfield County, CT United States USD Year SF New York - Westchester County, NY United States USD Year SF New York, NY - Downtown Manhattan United States USD Year SF New York, NY - Midtown Manhattan United States USD Year SF New York, NY - Midtown S. Manhattan United States USD Year SF Oakland, CA United States USD Year SF Orange County, CA United States USD Year SF Orlando, FL United States USD Year SF Philadelphia, PA United States USD Year SF Phoenix, AZ United States USD Year SF Pleasanton/Walnut Creek, CA United States USD Year SF Portland, OR United States USD Year SF Raleigh/Durham/Chapel Hill, NC United States USD Year SF Reno, NV United States USD Year SF Sacramento, CA United States USD Year SF San Diego County, CA United States USD Year SF San Francisco Pen./San Mateo County, CA United States USD Year SF San Francisco, CA United States USD Year SF San Jose/Silicon Valley, CA United States USD Year SF Santa Rosa/Sonoma County, CA United States USD Year SF Seattle,WA United States USD Year SF St. Louis, MO United States USD Year SF Stockton/San Joaquin County, CA United States USD Year SF Tampa, FL United States USD Year SF Washington, DC United States USD Year SF West Palm Beach/Palm Beach County, FL United States USD Year SF ASIA PACIFIC Adelaide Australia AUD Year SM Brisbane Australia AUD Year SM , Melbourne Australia AUD Year SM Perth Australia AUD Year SM Sydney Australia AUD Year SM , , Beijing China USD Month SM Guangzhou China RMB Month SM Hong Kong China HKD Month SF Shanghai China RMB Month SM Bangalore India INR Month SF Chennai India INR Month SF Delhi India INR Month SF Mumbai India INR Month SF Jakarta Indonesia IDR Month SM 87, , , , Tokyo (Central Wards) Japan JPY Year SM - 147, , Auckland New Zealand NZD Year SM Wellington New Zealand NZD Year SM Singapore Singapore SGD Month SF Seoul South Korea KRW Month SM 20, , , , Taipei Taiwan NTD Month Ping 2, , , , LATIN AMERICA Buenos Aires Argentina USD Month SM Rio de Janeiro Brazil BRL Month SM Sao Paulo Brazil BRL Month SM Santiago Chile USD Month SM Bogota Colombia USD Month SM Mexico City Mexico USD Month SM Lima Peru USD Month SM COLLIERS INTERNATIONAL

17 OFFICE MARKETS US DOLLARS CBD MARKETS JUNE 2008 CLASS A CLASS A TOP CLASS A TOP CLASS A CBD SALES EXCHANGE CBD CAP 10YEAR NET RENT GROSS RENT NET RENT GROSS RENT PRICE RATE (USD) RATE/INITIAL GOV T CITY COUNTRY (PSF USDYR.) (PSF USDYR.) (PSF USDYR.) (PSF USDYR.) (PSF USD) JUNE 30, 2008 YIELD (%) BONDS (%) EUROPE, MIDDLE EAST, AFRICA (EMEA) Tirana Albania Vienna Austria Antwerp Belgium Brussels Belgium Sofia Bulgaria Zagreb Croatia Prague Czech Republic Copenhagen Denmark Tallinn Estonia Helsinki Finland Bordeaux France Lyon France Montpellier France Nantes France Paris France , Strasbourg France Toulouse France Berlin Germany Düsseldorf Germany , Frankfurt Germany Hamburg Germany , Munich Germany Stuttgart Germany Athens Greece Budapest Hungary Dublin Ireland , Tel Aviv Israel Milan Italy , Rome Italy , Riga Latvia Kaunas Lithuania Klaipeda Lithuania Vilnius Lithuania Podgorica Montenegro Belfast N. Ireland Amsterdam Netherlands Eindhoven Netherlands Rotterdam Netherlands The Hague Netherlands Utrecht Netherlands Oslo Norway Warsaw Poland Doha Qatar Bucharest Romania Moscow Russia Saint Petersburg Russia , Belgrade Serbia Bratislava Slovakia Cape Town South Africa Durban South Africa Johannesburg South Africa Pretoria South Africa Sandton South Africa Madrid Spain , Stockholm Sweden , Geneva Switzerland , Zurich Switzerland COLLIERS INTERNATIONAL 15

18 OFFICE MARKETS US DOLLARS CBD MARKETS JUNE 2008 CLASS A CLASS A TOP CLASS A TOP CLASS A CBD SALES EXCHANGE CBD CAP 10YEAR NET RENT GROSS RENT NET RENT GROSS RENT PRICE RATE (USD) RATE/INITIAL GOV T CITY COUNTRY (PSF USDYR.) (PSF USDYR.) (PSF USDYR.) (PSF USDYR.) (PSF USD) JUNE 30, 2008 YIELD (%) BONDS (%) EUROPE, MIDDLE EAST, AFRICA (EMEA) CONTINUED Istanbul Turkey Abu Dhabi UAE Dubai UAE Kyiv Ukraine , Birmingham United Kingdom Bristol United Kingdom Edinburgh United Kingdom Glasgow United Kingdom London City United Kingdom London Docklands United Kingdom London West End United Kingdom Manchester United Kingdom NORTH AMERICA Calgary, AB Canada Edmonton, AB Canada Halifax, NS Canada Montreal, QC Canada Ottawa, ON Canada Regina, SK Canada Saskatoon, SK Canada Toronto, ON Canada Vancouver, BC Canada Victoria, BC Canada Atlanta, GA United States Bakersfield, CA United States Baltimore, MD United States Boise, ID United States Boston, MA United States Charleston, SC United States Charlotte, NC United States Chicago, IL United States Cincinnati, OH United States Cleveland, OH United States Columbia, SC United States Columbus, OH United States Dallas/Ft.Worth,TX United States Denver, CO United States Detroit, MI United States Fairfield, CA United States Fresno, CA United States Ft. Lauderdale/Broward County, FL United States Greenville, SC United States Hartford, CT United States Honolulu, HI United States Houston,TX United States Indianapolis, IN United States Jacksonville, FL United States Kansas City, MO-KS United States Las Vegas, NV United States Little Rock, AR United States Los Angeles, CA United States Louisville, KY United States Memphis,TN United States Miami/Dade County, FL United States Milwaukee,WI United States Minneapolis/St. Paul, MN United States Nashville,TN United States COLLIERS INTERNATIONAL

19 OFFICE MARKETS US DOLLARS CBD MARKETS JUNE 2008 CLASS A CLASS A TOP CLASS A TOP CLASS A CBD SALES EXCHANGE CBD CAP 10YEAR NET RENT GROSS RENT NET RENT GROSS RENT PRICE RATE (USD) RATE/INITIAL GOV T CITY COUNTRY (PSF USDYR.) (PSF USDYR.) (PSF USDYR.) (PSF USDYR.) (PSF USD) JUNE 30, 2008 YIELD (%) BONDS (%) NORTH AMERICA CONTINUED New Jersey - Central United States New Jersey - Northern United States New York - Fairfield County, CT United States NewYork - Westchester County, NY United States NewYork, NY - Downtown Manhattan United States NewYork, NY - Midtown Manhattan United States NewYork, NY - Midtown S. Manhattan United States Oakland, CA United States Orange County, CA United States Orlando, FL United States Philadelphia, PA United States Phoenix, AZ United States Pleasanton/Walnut Creek, CA United States Portland, OR United States Raleigh/Durham/Chapel Hill, NC United States Reno, NV United States Sacramento, CA United States San Diego County, CA United States San Francisco Pen./San Mateo County, CA United States San Francisco, CA United States San Jose/Silicon Valley, CA United States Santa Rosa/Sonoma County, CA United States Seattle,WA United States St. Louis, MO United States Stockton/San Joaquin County, CA United States Tampa, FL United States Washington, DC United States West Palm Beach/Palm Beach County, FL United States ASIA PACIFIC Adelaide Australia Brisbane Australia Melbourne Australia Perth Australia Sydney Australia Beijing China Guangzhou China Hong Kong China , Shanghai China Bangalore India Chennai India Delhi India , Mumbai India , Jakarta Indonesia , Tokyo (Central Wards) Japan , Auckland New Zealand Wellington New Zealand Singapore Singapore , Seoul South Korea , , Taipei Taiwan LATIN AMERICA Buenos Aires Argentina Rio de Janeiro Brazil Sao Paulo Brazil Santiago Chile Bogota Colombia Mexico City Mexico Lima Peru COLLIERS INTERNATIONAL 17

20 OFFICE MARKETS LOCAL MEASURE/CURRENCY SUBURBAN/OUT-OF-TOWN RENTS JUNE 2008 MEASURE QUOTED TIME CLASS A CLASS A TOP CLASS A TOP CLASS A CITY COUNTRY CURRENCY PERIOD UNIT NET RENT GROSS RENT NET RENT GROSS RENT EUROPE, MIDDLE EAST, AFRICA (EMEA) Tirana Albania EUR Month SM Vienna Austria EUR Month SM Antwerp Belgium EUR Year SM Brussels Belgium EUR Year SM Sofia Bulgaria EUR Month SM Zagreb Croatia EUR Month SM Prague Czech Republic EUR Month SM Copenhagen Denmark DKK Year SM , , , Tallinn Estonia EUR Month SM Helsinki Finland EUR Month SM Bordeaux France EUR Month SM Lyon France EUR Month SM Montpellier France EUR Month SM Nantes France EUR Month SM Paris France EUR Year SM Strasbourg France EUR Month SM Toulouse France EUR Month SM Berlin Germany EUR Month SM Düsseldorf Germany EUR Month SM Frankfurt Germany EUR Month SM Hamburg Germany EUR Month SM Munich Germany EUR Month SM Stuttgart Germany EUR Month SM Athens Greece EUR Month SM Budapest Hungary EUR Month SM Dublin Ireland EUR Year SM Tel Aviv Israel ILS Month SM Milan Italy EUR Year SM Rome Italy EUR Year SM Riga Latvia EUR Month SM Kaunas Lithuania EUR Month SM Klaipeda Lithuania EUR Month SM Vilnius Lithuania EUR Month SM Podgorica Montenegro EUR Month SM Belfast N. Ireland GBP Year SF Amsterdam Netherlands EUR Year SM Eindhoven Netherlands EUR Year SM Rotterdam Netherlands EUR Year SM The Hague Netherlands EUR Year SM Utrecht Netherlands EUR Year SM Oslo Norway NOK Year SM 2, , , , Warsaw Poland EUR Month SM Doha Qatar QAR Month SM Bucharest Romania EUR Month SM Moscow Russia USD Year SM - 1, Saint Petersburg Russia USD Year SM Belgrade Serbia EUR Month SM Bratislava Slovakia EUR Month SM Cape Town South Africa ZAR Month SM Durban South Africa ZAR Month SM Johannesburg South Africa ZAR Month SM Pretoria South Africa ZAR Month SM Sandton South Africa ZAR Month SM Madrid Spain EUR Month SM Stockholm Sweden SEK Year SM 2, , , , Geneva Switzerland CHF Year SM Zurich Switzerland CHF Year SM COLLIERS INTERNATIONAL

21 OFFICE MARKETS LOCAL MEASURE/CURRENCY SUBURBAN/OUT-OF-TOWN RENTS JUNE 2008 MEASURE QUOTED TIME CLASS A CLASS A TOP CLASS A TOP CLASS A CITY COUNTRY CURRENCY PERIOD UNIT NET RENT GROSS RENT NET RENT GROSS RENT EUROPE, MIDDLE EAST, AFRICA (EMEA) CONTINUED Istanbul Turkey EUR Month SM Abu Dhabi UAE AED Year SM 2, , , , Dubai UAE AED Year SM 2, , , , Kyiv Ukraine USD Month SM Birmingham United Kingdom GBP Year SF Bristol United Kingdom GBP Year SF Edinburgh United Kingdom GBP Year SF Glasgow United Kingdom GBP Year SF London City United Kingdom GBP Year SF London Docklands United Kingdom GBP Year SF London West End United Kingdom GBP Year SF Manchester United Kingdom GBP Year SF NORTH AMERICA Calgary, AB Canada CAD Year SF Edmonton, AB Canada CAD Year SF Halifax, NS Canada CAD Year SF Montreal, QC Canada CAD Year SF Ottawa, ON Canada CAD Year SF Regina, SK Canada CAD Year SF Saskatoon, SK Canada CAD Year SF Toronto, ON Canada CAD Year SF Vancouver, BC Canada CAD Year SF Victoria, BC Canada CAD Year SF Atlanta, GA United States USD Year SF Bakersfield, CA United States USD Year SF Baltimore, MD United States USD Year SF Boise, ID United States USD Year SF Boston, MA United States USD Year SF Charleston, SC United States USD Year SF Charlotte, NC United States USD Year SF Chicago, IL United States USD Year SF Cincinnati, OH United States USD Year SF Cleveland, OH United States USD Year SF Columbia, SC United States USD Year SF Columbus, OH United States USD Year SF Dallas/Ft.Worth,TX United States USD Year SF Denver, CO United States USD Year SF Detroit, MI United States USD Year SF Fairfield, CA United States USD Year SF Fresno, CA United States USD Year SF Ft. Lauderdale/Broward County, FL United States USD Year SF Greenville, SC United States USD Year SF Hartford, CT United States USD Year SF Honolulu, HI United States USD Year SF Houston,TX United States USD Year SF Indianapolis, IN United States USD Year SF Jacksonville, FL United States USD Year SF Kansas City, MO-KS United States USD Year SF Las Vegas, NV United States USD Year SF Little Rock, AR United States USD Year SF Los Angeles, CA United States USD Year SF Louisville, KY United States USD Year SF Memphis,TN United States USD Year SF Miami/Dade County, FL United States USD Year SF Milwaukee,WI United States USD Year SF Minneapolis/St. Paul, MN United States USD Year SF Nashville,TN United States USD Year SF COLLIERS INTERNATIONAL 19

22 OFFICE MARKETS LOCAL MEASURE/CURRENCY SUBURBAN/OUT-OF-TOWN RENTS JUNE 2008 MEASURE QUOTED TIME CLASS A CLASS A TOP CLASS A TOP CLASS A CITY COUNTRY CURRENCY PERIOD UNIT NET RENT GROSS RENT NET RENT GROSS RENT NORTH AMERICA CONTINUED New Jersey - Central United States USD Year SF New Jersey - Northern United States USD Year SF New York - Fairfield County, CT United States USD Year SF New York - Westchester County, NY United States USD Year SF New York, NY - Downtown Manhattan United States USD Year SF New York, NY - Midtown Manhattan United States USD Year SF New York, NY - Midtown S. Manhattan United States USD Year SF Oakland, CA United States USD Year SF Orange County, CA United States USD Year SF Orlando, FL United States USD Year SF Philadelphia, PA United States USD Year SF Phoenix, AZ United States USD Year SF Pleasanton/Walnut Creek, CA United States USD Year SF Portland, OR United States USD Year SF Raleigh/Durham/Chapel Hill, NC United States USD Year SF Reno, NV United States USD Year SF Sacramento, CA United States USD Year SF San Diego County, CA United States USD Year SF San Francisco Pen./San Mateo County, CA United States USD Year SF San Francisco, CA United States USD Year SF San Jose/Silicon Valley, CA United States USD Year SF Santa Rosa/Sonoma County, CA United States USD Year SF Seattle,WA United States USD Year SF St. Louis, MO United States USD Year SF Stockton/San Joaquin County, CA United States USD Year SF Tampa, FL United States USD Year SF Washington, DC United States USD Year SF West Palm Beach/Palm Beach County, FL United States USD Year SF ASIA PACIFIC Adelaide Australia AUD Year SM Brisbane Australia AUD Year SM Melbourne Australia AUD Year SM Perth Australia AUD Year SM Sydney Australia AUD Year SM Beijing China USD Month SM Guangzhou China RMB Month SM Hong Kong China HKD Month SF Shanghai China RMB Month SM Bangalore India INR Month SF Chennai India INR Month SF Delhi India INR Month SF Mumbai India INR Month SF Jakarta Indonesia IDR Month SM 108, , , , Tokyo (Central Wards) Japan JPY Year SM Auckland New Zealand NZD Year SM Wellington New Zealand NZD Year SM Singapore Singapore SGD Month SF Seoul South Korea KRW Month SM Taipei Taiwan NTD Month Ping LATIN AMERICA Buenos Aires Argentina USD Month SM Rio de Janeiro Brazil BRL Month SM Sao Paulo Brazil BRL Month SM Santiago Chile USD Month SM Bogota Colombia USD Month SM Mexico City Mexico USD Month SM Lima Peru USD Month SM COLLIERS INTERNATIONAL

23 OFFICE MARKETS US DOLLARS SUBURBAN/OUT-OF-TOWN JUNE 2008 CLASS A CLASS A TOP CLASS A TOP CLASS A SUBURBAN EXCHANGE SUBURBAN CAP 10YEAR NET RENT GROSS RENT NET RENT GROSS RENT SALES PRICE RATE (USD) RATE/INITIAL GOV T CITY COUNTRY (PSF USDYR.) (PSF USDYR.) (PSF USDYR.) (PSF USDYR.) (PSF USD) JUNE 30, 2008 YIELD (%) BONDS (%) EUROPE, MIDDLE EAST, AFRICA (EMEA) Tirana Albania Vienna Austria Antwerp Belgium Brussels Belgium Sofia Bulgaria Zagreb Croatia Prague Czech Republic Copenhagen Denmark Tallinn Estonia Helsinki Finland Bordeaux France Lyon France Montpellier France Nantes France Paris France Strasbourg France Toulouse France Berlin Germany Düsseldorf Germany Frankfurt Germany Hamburg Germany Munich Germany Stuttgart Germany Athens Greece Budapest Hungary Dublin Ireland Tel Aviv Israel Milan Italy Rome Italy Riga Latvia Kaunas Lithuania Klaipeda Lithuania Vilnius Lithuania Podgorica Montenegro Belfast N. Ireland Amsterdam Netherlands Eindhoven Netherlands Rotterdam Netherlands The Hague Netherlands Utrecht Netherlands Oslo Norway Warsaw Poland Doha Qatar Bucharest Romania Moscow Russia Saint Petersburg Russia Belgrade Serbia Bratislava Slovakia Cape Town South Africa Durban South Africa Johannesburg South Africa Pretoria South Africa Sandton South Africa Madrid Spain Stockholm Sweden Geneva Switzerland Zurich Switzerland COLLIERS INTERNATIONAL 21

24 OFFICE MARKETS US DOLLARS SUBURBAN/OUT-OF-TOWN JUNE 2008 CLASS A CLASS A TOP CLASS A TOP CLASS A SUBURBAN EXCHANGE SUBURBAN CAP 10YEAR NET RENT GROSS RENT NET RENT GROSS RENT SALES PRICE RATE (USD) RATE/INITIAL GOV T CITY COUNTRY (PSF USDYR.) (PSF USDYR.) (PSF USDYR.) (PSF USDYR.) (PSF USD) JUNE 30, 2008 YIELD (%) BONDS (%) EUROPE, MIDDLE EAST, AFRICA (EMEA) CONTINUED Istanbul Turkey Abu Dhabi UAE Dubai UAE Kyiv Ukraine Birmingham United Kingdom Bristol United Kingdom Edinburgh United Kingdom Glasgow United Kingdom London City United Kingdom London Docklands United Kingdom London West End United Kingdom Manchester United Kingdom NORTH AMERICA Calgary, AB Canada Edmonton, AB Canada Halifax, NS Canada Montreal, QC Canada Ottawa, ON Canada Regina, SK Canada Saskatoon, SK Canada Toronto, ON Canada Vancouver, BC Canada Victoria, BC Canada Atlanta, GA United States Bakersfield, CA United States Baltimore, MD United States Boise, ID United States Boston, MA United States Charleston, SC United States Charlotte, NC United States Chicago, IL United States Cincinnati, OH United States Cleveland, OH United States Columbia, SC United States Columbus, OH United States Dallas/Ft.Worth,TX United States Denver, CO United States Detroit, MI United States Fairfield, CA United States Fresno, CA United States Ft. Lauderdale/Broward County, FL United States Greenville, SC United States Hartford, CT United States Honolulu, HI United States Houston,TX United States Indianapolis, IN United States Jacksonville, FL United States Kansas City, MO-KS United States Las Vegas, NV United States Little Rock, AR United States Los Angeles, CA United States Louisville, KY United States Memphis,TN United States Miami/Dade County, FL United States Milwaukee,WI United States Minneapolis/St. Paul, MN United States Nashville,TN United States COLLIERS INTERNATIONAL

25 OFFICE MARKETS US DOLLARS SUBURBAN/OUT-OF-TOWN JUNE 2008 CLASS A CLASS A TOP CLASS A TOP CLASS A SUBURBAN EXCHANGE SUBURBAN CAP 10YEAR NET RENT GROSS RENT NET RENT GROSS RENT SALES PRICE RATE (USD) RATE/INITIAL GOV T CITY COUNTRY (PSF USDYR.) (PSF USDYR.) (PSF USDYR.) (PSF USDYR.) (PSF USD) JUNE 30, 2008 YIELD (%) BONDS (%) NORTH AMERICA CONTINUED New Jersey - Central United States New Jersey - Northern United States New York - Fairfield County, CT United States NewYork - Westchester County, NY United States NewYork, NY - Downtown Manhattan United States NewYork, NY - Midtown Manhattan United States NewYork, NY - Midtown S. Manhattan United States Oakland, CA United States Orange County, CA United States Orlando, FL United States Philadelphia, PA United States Phoenix, AZ United States Pleasanton/Walnut Creek, CA United States Portland, OR United States Raleigh/Durham/Chapel Hill, NC United States Reno, NV United States Sacramento, CA United States San Diego County, CA United States San Francisco Pen./San Mateo County, CA United States San Francisco, CA United States San Jose/Silicon Valley, CA United States Santa Rosa/Sonoma County, CA United States Seattle,WA United States St. Louis, MO United States Stockton/San Joaquin County, CA United States Tampa, FL United States Washington, DC United States West Palm Beach/Palm Beach County, FL United States ASIA PACIFIC Adelaide Australia Brisbane Australia Melbourne Australia Perth Australia Sydney Australia Beijing China Guangzhou China Hong Kong China Shanghai China Bangalore India Chennai India Delhi India Mumbai India Jakarta Indonesia , Tokyo (Central Wards) Japan Auckland New Zealand Wellington New Zealand Singapore Singapore Seoul South Korea , Taipei Taiwan LATIN AMERICA Buenos Aires Argentina Rio de Janeiro Brazil Sao Paulo Brazil Santiago Chile Bogota Colombia Mexico City Mexico Lima Peru COLLIERS INTERNATIONAL 23

26 COLLIERS INTERNATIONAL l GLOBAL OFFICE REAL ESTATE REVIEW l MIDYEAR 2008 Glossary Class A Gross Rent The average rent quoted per square foot per annum for a class A office building within the CBD plus additional costs such as property taxes, service charges or operating expenses. Class A Net Rent The average rent quoted per square foot per annum for a class A office building within the CBD. Class A (Prime) Buildings Most prestigious buildings competing for premier office users with rents above average for the area. Buildings have high quality standard finishes, state of the art systems, exceptional accessibility and a definite market presence. Characterized by: Prime central location; 1st class tenant improvements; on-site parking; state of the art elevators and HVAC systems; concrete and steel construction; contemporary design and architecture; high quality of upkeep and maintenance; ability to command a premium rent within the relevant market. Implicit in the Class A building definition is that the size of the building is significant in accordance with the market. Population The latest population statistics for the metropolitan region. Quoted Currency The currency quoted locally in all lease transactions, not necessarily national currency. (Note: Chile utilizes Unidad de Fomento, which equals USD 24.30) Sales Price The average sales price paid for a class A office building within the CBD. Time Period The standard way in which leases are quoted. Usually on a per month or per year basis. Top Class A Gross Rent The top/ highest rent quoted per square foot per annum for office floor space within the CBD plus additional costs such as property taxes, service charges or operating expenses. Top Class A Net Rent The top/highest rent quoted per square foot per annum for office floor space within the CBD. Total Inventory Existing office floor space (classes A, B and C) within each city s CBD (central business district). Under Construction The total office floor space (classes A, B and C) within each city s CBD (central business district) which is under construction but not yet completed, giving an indication of the development pipeline for each market. This includes both available and pre-let floor space. Unit The normal convention locally in which area is measured. Usually on a per square foot or per square meter basis. Vacancy Rate (%) The percentage of the inventory (total completed office floor space, classes A, B and C, within the CBD) which is unoccupied. Yield (%) The average prime yield (or capitalization rate), expressed as a percentage, for a Class A office building within the CBD. Note: SF = Square Feet SM = Square Meter PSF = Per Square Feet PSM = Per Square Meter CBD = Central Business District The information contained herein has been obtained from sources deemed reliable. While every reasonable effort has been made to ensure its accuracy, we cannot guarantee it. No responsibility is assumed for any inaccuracies. Readers are encouraged to consult their professional advisors prior to acting on any of the material contained in this report. Colliers International is a worldwide affiliation of independently owned and operated companies. 24 COLLIERS INTERNATIONAL

27 COLLIERS INTERNATIONAL l GLOBAL OFFICE REAL ESTATE REVIEW l MIDYEAR 2008 Colliers Office Locations Colliers International is a corporation of leading real estate firms committed to delivering consistently superior commercial real estate services, wherever, and whenever needed. Global $2.0 Billion ( 1.4 Billion) in Revenue 868 Million SF (80 Million SM) Under Management 11,000 Employees 61 Countries 6 Continents 293 OFFICES WORLDWIDE 61 COUNTRIES ON 6 CONTINENTS 136 Americas 99 United States 19 Canada 18 Latin America 95 Europe, Middle East & Africa 62 Asia Pacific Albania Argentina Australia Austria Belgium Brazil Bulgaria Canada Chile China Colombia Costa Rica Croatia Czech Republic Denmark Estonia Finland France Germany Greece Hong Kong Hungary India Indonesia Ireland Israel Italy Japan Korea Latvia Lithuania Macau Mexico Montenegro Netherlands New Zealand Norway Pakistan Peru Philippines Poland Portugal Qatar Romania Russia Saudi Arabia Serbia Singapore Slovak Republic South Africa Spain Sweden Switzerland Taiwan Thailand Turkey UAE Ukraine United Kingdom USA Vietnam COLLIERS INTERNATIONAL 25