Global Office Real Estate Review colliers.com

Transcription

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

2 COLLIERS INTERNATIONAL l GLOBAL OFFICE REAL ESTATE REVIEW 2008 colliers.com CONTENTS TABLE OF CONTENTS Global Summary and Regional Synopses 1 3 GLOBAL OFFICE MARKETS EMEA* and Latin America 4 North America and Asia Pacific 5 CONSTRUCTION AND VACANCY EMEA and Latin America 6 North America and Asia Pacific 7 CENTRAL BUSINESS DISTRICT SURVEY EMEA and Latin America Occupancy Costs 8 North America and Asia Pacific Occupancy Costs 9 EMEA and Latin America US Dollars Occupancy Costs/Sales Prices/Cap Rates 10 North America and Asia Pacific US Dollars Occupancy Costs/Sales Prices/Cap Rates 11 SUBURBAN/OUT-OF-TOWN SURVEY EMEA and Latin America Occupancy Costs 12 North America and Asia Pacific Occupancy Costs 13 EMEA and Latin America US Dollars Occupancy Costs/Sales Prices/Cap Rates 14 North America and Asia Pacific US Dollars Occupancy Costs/Sales Prices/Cap Rates 15 Glossary 16 Colliers Office Locations 17 * EMEA Europe/Middle East/Africa REGIONAL RESEARCH CONTACTS North America Ross Moore ross.moore@colliers.com Asia Pacific Simon Lo simon.lo@colliers.com Australasia Felice Spark felice.spark@colliers.com Europe/Middle East/Africa Kate Lawler kate.lawler@colliers.com Latin America Mario Rivera mario.rivera@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 COLLIERS INTERNATIONAL l GLOBAL OFFICE REAL ESTATE REVIEW 2008 DESPITE CREDIT CRUNCH, OFFICE MARKETS STILL ON UPWARD TREND For most regions of the world, office space is still in high demand highlighted by lower vacancies and higher rents. The velocity of both declining vacancies and higher rents, however, is down from six months ago as several key financial centers are beginning to feel the effects of the global credit crunch but the general up trend is still in place. Emerging economies remain unfazed and continue to show rapid growth and a voracious appetite for office space. Caution is warranted, however, as the global economy faces a slowdown but the broad trend is still up for many regions of the world. Europe, Middle East, Africa/EMEA Europe, Middle East and South African office markets continued to post reasonable growth in the second half of 2007, although at a more modest pace than in the previous six months. Because of the shortage or (in some cases) inadequacy of space in central business districts, many cities continued to witness a decentralization of business activity as developers created new pockets of office space in non-cbd locations. Although many European economies are expected to slow in 2008, Paris and much of Germany are expecting office demand to stay strong. The average EMEA vacancy rate declined again in the second half of 2007, down 20 basis points to 6.6%. In response to lower vacancy, construction continued to rise. Dubai leads the region (and the world), with 39.7 million square feet currently under construction. With vacancy rates hovering close to zero, Abu Dhabi, Bucharest, Kiev, and Vilnius also saw large increases in their development pipelines in the second half of With all of this construction and an uncertain business environment 2008 could see the first average increase in vacancy rates in over three years. EMEA office rental growth continued in the latter half of 2007, albeit at a much slower pace than in the first half of the year. Furthermore, the region was characterized by marked differences according to location. Several Eastern European markets experienced impressive rental growth, with Athens, Bratislava, Budapest, Bucharest, and Warsaw all seeing rents increase by over 10% since mid-year. Meanwhile, several of the markets boasting the highest office rents at mid-year London City and Docklands, Moscow, Saint Petersburg, and Kiev are down from previous highs. Nevertheless, the usual suspects top the rental chart again this period, as London s West End remains the most expensive EMEA location in which to lease office space. Asia Pacific The Asia Pacific region posted uneven results during the latter half of the year with the regional vacancy rate increasing by almost a full percentage point to register 8.6%. This was the second such increase with the regional vacancy rate now up 1.5 percentage points in the last 12 months. This marks a sharp reversal from the past several years when vacancies had trended down. The jump in vacancies during the first half of the year were largely the result of a number of Indian markets which reported a substantial higher vacancy rate compared with that reported at the beginning of the year. Beijing and Guangzhou also reported OFFICE CONSTRUCTION TOP 25 CITIES DECEMBER 2007 Under Construction SF Million Dubai, UAE Shanghai, China Guangzhou, China Paris, France Beijing, China Delhi, India Moscow, Russia 15.4 Washington, USA Saint-Petersburg, Russia Calgary, Canada Doha, Qatar London City, UK Jakarta, Indonesia Phoenix, USA Tokyo Central Wards (6), Japan Kiev, Ukraine Bangalore, India Sofia, Bulgaria Chicago, USA Seattle, USA Atlanta, USA Charlotte, USA Dallas/Ft. Worth, USA Toronto, Canada Amsterdam, The Netherlands colliers.com 1

4 COLLIERS INTERNATIONAL l GLOBAL OFFICE REAL ESTATE REVIEW 2008 Vacancy Rate Percent June 2003 Dec June 2004 Dec June EMEA Dec June 2006 Dec June 2007 Dec ASIA PACIFIC Region London- West End Paris Frankfurt significantly higher vacancy. Major financial centers such as Hong Kong, Singapore, Tokyo, Shanghai and Sydney, however, all showed less vacancy than six months ago. Perth again posted the region s (and world s) lowest vacancy rate of just 0.5%. The Asia Pacific region remains characterized by high levels of office construction with Bangalore, Beijing, Chennai, Delhi, Guangzhou, Jakarta, Melbourne, Shanghai and Tokyo home to over 126 million square feet of construction currently underway. On the demand side, most economies across the region are expected to continue posting very high growth rates keeping demand high and vacancies relatively stable. The most expensive office space in the region (and the world) could be found in Hong Kong at $ USD per square foot followed by Tokyo at $ USD per square foot. In USD terms occupancy costs in these two markets held steady during the latter half of the year. 20 Vacancy Rate Percent Vacancy Rate Percent Vacancy Rate Percent June 2003 Dec June 2004 Dec June Dec June 2006 Dec June 2007 Dec NORTH AMERICA 0 June 2003 Dec June 2004 Dec June 2005 Dec June 2006 Dec June 2007 Dec June 2003 Dec June 2004 Dec June 2005 Dec June 2006 Dec June 2007 Dec LATIN AMERICA Region Hong Kong Shanghai Sydney United States Canada NY Midtown Toronto Region Mexico City Sao Paulo Buenos Aires COUNTRY GROWTH RATES (%) GROSS DOMESTIC PRODUCT (GDP) P 2009F China India Slovakia Russia Poland Indonesia Saudi Arabia Argentina Colombia Malaysia Singapore Czech Republic South Africa South Korea Brazil Taiwan Hong Kong Chile Israel Turkey Australia Norway Hungary Sweden Austria Greece Spain Netherlands Switzerland Mexico Belgium Germany Britain Canada France United States Denmark Japan Italy P = Projected F = Forecast Source: Economist Consensus Forecast February 23, 2008 Bold: G7 Countries 2 colliers.com

5 United States/Canada U.S. and Canadian office markets both recorded a modest slowdown in the latter half of During the second half of the year the U.S. office market saw average vacancies hold steady while Canadian vacancies fell 30 basis points to 5.7%. New York s midtown market softened marginally with an overall vacancy rate of 6.8% and a Class A vacancy rate of 5.8%. Toronto, home to Canada s largest office market, stayed relatively robust with an overall downtown vacancy rate of 4.6%. While down marginally, the most expensive office space in the U.S. remained Midtown Manhattan at $ USD per square foot. Latin America The Latin America region continued its remarkable surge highlighted by substantially lower vacancies and higher rents across virtually all markets. The regional office vacancy rate fell by 140 basis points during the second half of 2007 to average 3.8% with Lima in particular posting a decidedly lower vacancy rate. Every market in the region with the exception of Buenos Aires reported higher rents. Office construction remains concentrated in Bogotá, Mexico City, Santiago and Sao Paulo with 17.7 million square feet currently underway. Sao Paulo took top spot as the most expensive office market in the region at $84.00 USD per square foot. Occupancy costs in Sao Paulo increased by 13.2% during the last six months of the year. Ross Moore Senior Vice President Market and Economic Research ross.moore@colliers.com GLOBAL CAPITALIZATION RATES/INITIAL YIELDS 25 LOWEST Percent Tokyo Central Wards (6), Japan Hong Kong, China Dublin, Ireland London West End, UK Madrid, Spain Paris, France Vienna, Austria London City, UK Stockholm, Sweden Geneva, Switzerland Rome, Italy Basel, Switzerland Copenhagen, Denmark Zurich, Switzerland Berlin, Germany Düsseldorf, Germany Frankfurt, Germany Hamburg, Germany London Docklands, UK New York - Midtown, USA Singapore Brussels, Belgium Budapest, Hungary Milan, Italy Oslo, Norway GLOBAL OFFICE OCCUPANCY COSTS TOP 25 (CLASS A/PRIME SPACE) Per Square Foot, USD London West End, UK Hong Kong, China London City, UK Singapore Tokyo Central Wards (6), Japan Moscow, Russia Paris, France Mumbai (Bombay), India London Docklands, UK New York - Midtown, USA Delhi, India Kiev, Ukraine Dublin, Ireland Brisbane, Australia Rio de Janeiro, Brazil Doha, Qatar Birmingham, UK Stockholm, Sweden Perth, Australia Dubai, UAE Manchester, UK Boston, USA Saint-Petersburg, Russia Madrid, Spain Sydney, Australia colliers.com 3

6 GLOBAL OFFICE MARKETS Existing Inventory December 2007 Geographic Market Population SF SM Area EUROPE/MIDDLE EAST/AFRICA Abu Dhabi, UAE 860,000 15,064,000 1,400,000 Metro Amsterdam,The Netherlands 749,000 68,326,000 6,350,000 CBD Antwerp, Belgium 469,000 21,520,000 2,000,000 Metro Athens, Greece 3,829,000 53,800,000 5,000,000 Metro Basel, Switzerland 576,000 43,040,000 4,000,000 Metro Belgrade, Serbia 1,125,000 7,012, ,000 Metro Berlin, Germany 4,041, ,756,000 18,100,000 Metro Birmingham, UK 3,221,000 14,495,000 1,347,000 CBD Bratislava, Slovakia 419,000 7,532, ,000 CBD Brussels, Belgium 1,040, ,652,000 12,700,000 Metro Bucharest, Romania 1,874,000 6,338, ,000 Metro Budapest, Hungary 2,579,000 19,969,000 1,856,000 CBD Cape Town, South Africa 4,715,000 7,629, ,000 CBD Copenhagen, Denmark 1,083, ,436,000 11,100,000 Metro Doha, Qatar 761,000 4,671, ,000 Metro Dubai, UAE 2,262,000 24,591,000 2,285,000 CBD Dublin, Ireland 1,058,000 29,052,000 2,700,000 CBD Durban, South Africa 3,347,000 7,404, ,000 CBD Düsseldorf, Germany 1,319,000 76,396,000 7,100,000 Metro Eindhoven, Netherlands 775,000 19,045,000 1,770,000 CBD Frankfurt, Germany 3,134, ,816,000 11,600,000 Metro Geneva, Switzerland 615,000 44,945,000 4,177,000 Metro Hamburg, Germany 3,267, ,791,000 12,620,000 Metro Helsinki, Finland 1,263,000 75,320,000 7,000,000 Metro Istanbul,Turkey 12,488,000 19,916,000 1,851,000 Metro Johannesburg, South Africa 7,586,000 18,146,000 1,686,000 CBD Kiev, Ukraine 2,500,000 8,500, ,000 Metro London City, UK 12,577,000 90,850,000 8,443,000 CBD London Docklands, UK 12,577,000 17,898,000 1,663,000 CBD London West End, UK 12,577,000 75,712,000 7,036,000 CBD Madrid, Spain 6,271, ,581,000 10,370,000 Metro Manchester, UK 2,245,000 15,781,000 1,467,000 CBD Milan, Italy 1,321, ,664,000 11,400,000 Metro Moscow, Russia 10,556,000 78,978,000 7,340,000 Metro Munich, Germany 2,312, ,587,000 21,430,000 Metro Oslo, Norway 847,000 92,895,000 8,633,000 Metro Paris, France 11,819, ,304,000 50,400,000 Metro Prague, Czech Republic 1,181,000 23,481,000 2,182,000 Metro Pretoria, South Africa 2,253,000 5,079, ,000 CBD Riga, Latvia 808,000 2,152, ,000 Metro Rome, Italy 2,513, ,424,000 12,400,000 Metro Saint-Petersburg, Russia 4,821,000 6,348, ,000 Metro Sandton, South Africa 1,481,000 13,053,000 1,213,000 CBD Sofia, Bulgaria 1,126,000 7,582, ,000 Metro Stockholm, Sweden 1,738,000 17,431,000 1,620,000 CBD Stuttgart, Germany 2,335,000 78,010,000 7,250,000 Metro Tallinn, Estonia 395,000 3,551, ,000 Metro Tel Aviv, Israel 3,268,000 26,577,000 2,470,000 CBD Vienna, Austria 1,694, ,746,000 10,850,000 CBD Vilnius, Lithuania 544,000 1,948, ,000 Metro Warsaw, Poland 1,598,000 29,136,000 2,708,000 Metro Zagreb, Croatia 703,000 9,146, ,000 Metro Zurich, Switzerland 1,025, ,676,000 10,100,000 Metro LATIN AMERICA Bogotá, Colombia 6,261,000 20,386,000 1,895,000 Metro Buenos Aires, Argentina 11,900,000 40,661,000 3,779,000 Metro Lima, Peru 7,195,000 3,929, ,000 Metro Mexico City, Mexico 16,900,000 57,201,000 5,316,000 Metro Rio de Janeiro, Brazil 11,226,000 40,502,000 3,764,000 CBD Santiago, Chile 4,657,000 22,063,000 2,051,000 CBD São Paulo, Brazil 18,628,000 53,876,000 5,007,000 CBD 4 colliers.com

7 GLOBAL OFFICE MARKETS (CONTINUED) Existing Inventory December 2007 Geographic Market Population SF SM Area NORTH AMERICA Atlanta, USA 4,112, ,697,000 21,161,000 Metro Baltimore, USA 2,076,000 60,850,000 5,655,000 Metro Boston, USA 3,407, ,948,000 16,817,000 Metro Calgary, Canada 994,000 51,993,000 4,832,000 Metro Charlotte, USA 759,000 70,856,000 6,585,000 Metro Chicago, USA 8,273, ,051,000 21,659,000 Metro Cleveland, USA 2,246,000 97,734,000 9,083,000 Metro Dallas/Ft. Worth, USA 5,222, ,582,000 25,612,000 Metro Denver, USA 2,109, ,159,000 10,702,000 Metro Detroit, USA 4,472, ,965,000 13,565,000 Metro Edmonton, Canada 1,002,000 17,162,000 1,595,000 Metro Ft. Lauderdale, USA 190,000 53,937,000 5,013,000 Metro Houston, USA 4,178, ,152,000 16,650,000 Metro Jacksonville, USA 1,278,000 38,845,000 3,610,000 Metro Kansas City, USA 1,967,000 45,210,000 4,202,000 Metro Las Vegas, USA 1,778,000 38,025,000 3,534,000 Metro Los Angeles, USA 9,519, ,413,000 16,767,000 Metro Memphis, USA 1,275,000 32,918,000 3,059,000 Metro Miami, USA 2,253,000 70,341,000 6,537,000 Metro Milwaukee, USA 1,309,000 57,253,000 5,321,000 Metro Minneapolis, USA 3,045,000 67,899,000 6,310,000 Metro Montreal, Canada 3,525,000 71,724,000 6,666,000 Metro New Jersey - Northern, USA 158,269,000 14,709,000 Suburban New York - Downtown, USA 9,314,000 89,744,000 8,340,000 CBD New York - Midtown, USA 9,314, ,887,000 23,595,000 CBD Orlando, USA 1,157,000 58,620,000 5,448,000 Metro Ottawa, Canada 1,064,000 34,145,000 3,173,000 Metro Philadelphia, USA 5,101, ,193,000 13,866,000 Metro Phoenix, USA 3,687, ,458,000 11,567,000 Metro Portland, USA 1,583,000 66,995,000 6,226,000 Metro Raleigh/Durham, USA 995,000 41,993,000 3,903,000 Metro Sacramento, USA 1,394,000 79,126,000 7,354,000 Metro San Diego, USA 2,933,000 73,500,000 6,831,000 Metro San Francisco, USA 1,731,000 81,087,000 7,536,000 CBD San Jose - Silicon Valley, USA 1,683,000 57,907,000 5,382,000 Metro Seattle, USA 2,415,000 65,197,000 6,059,000 Metro St. Louis, USA 2,647,000 49,043,000 4,558,000 Metro Tampa, USA 2,062,000 78,133,000 7,261,000 Metro Toronto, Canada 4,912, ,437,000 16,769,000 Metro Vancouver, Canada 2,126,000 51,701,000 4,805,000 Metro Washington, USA 4,923, ,035,000 30,765,000 Metro ASIA PACIFIC Adelaide, Australia 1,073,000 12,738,000 1,184,000 CBD Auckland, New Zealand 1,100,000 13,988,000 1,300,000 CBD Bangalore, India 5,687,000 45,000,000 4,182,000 Metro Beijing, China 13,833,000 51,961,000 4,829,000 CBD Brisbane, Australia 1,508,000 18,776,000 1,745,000 CBD Chennai, India 6,425,000 29,000,000 2,695,000 Metro Delhi, India 12,792,000 33,245,000 3,090,000 Metro Guangzhou, China 6,560,000 51,160,000 4,755,000 CBD Hong Kong, China 6,901,000 23,187,000 2,155,000 CBD Jakarta, Indonesia 8,756,000 38,660,000 3,593,000 CBD Manila, Philippines 10,492,000 28,481,000 2,647,000 CBD Melbourne, Australia 3,500,000 39,599,000 3,680,000 CBD Mumbai (Bombay), India 16,368,000 23,500,000 2,184,000 Metro Perth, Australia 1,340,000 13,826,000 1,285,000 CBD Seoul, South Korea 11,000,000 69,101,000 6,422,000 Metro Shanghai, China 17,780,000 38,378,000 3,567,000 CBD Singapore 4,164,000 46,080,000 4,283,000 CBD Sydney, Australia 4,232,000 49,867,000 4,634,000 CBD Taipei,Taiwan 2,626,000 49,732,000 4,622,000 CBD Tokyo Central Wards (6), Japan 12,290, ,998,000 61,431,000 CBD Wellington, New Zealand 400,000 15,494,000 1,440,000 CBD CBD Central Business District Metro Metropolitan Area colliers.com 5

8 GLOBAL OFFICE MARKETS (CONTINUED) Under Construction December 2007 Vacancy Rate Vacancy Rate Vacancy Rate Market SF SM Dec (%) June 2007 (%) Dec (%) EUROPE/MIDDLE EAST/AFRICA Abu Dhabi, UAE 4,465, , Amsterdam,The Netherlands 5,380, , Antwerp, Belgium 2,152, , Athens, Greece 2,152, , Basel, Switzerland 430,000 40, Belgrade, Serbia 1,883, , Berlin, Germany 1,937, , Birmingham, UK 1,167, , Bratislava, Slovakia 3,228, , Brussels, Belgium 4,950, , Bucharest, Romania 4,627, , Budapest, Hungary 3,429, , Cape Town, South Africa 560,000 52, Copenhagen, Denmark 3,766, , Doha, Qatar 8,954, , Dubai, UAE 39,686,000 3,688, Dublin, Ireland 2,152, , Durban, South Africa 74,000 7, Düsseldorf, Germany 2,044, , Eindhoven, Netherlands 1,883, , Frankfurt, Germany 2,076, , Geneva, Switzerland 1,076, , Hamburg, Germany 2,690, , Helsinki, Finland 1,291, , Istanbul,Turkey 2,195, , Johannesburg, South Africa Kiev, Ukraine 7,209, , London City, UK 7,823, , London Docklands, UK 1,556, , London West End, UK 4,316, , Madrid, Spain 4,573, , Manchester, UK 1,204, , Milan, Italy 3,228, , Moscow, Russia 15,387,000 1,430, Munich, Germany 4,964, , Oslo, Norway 2,753, , Paris, France 20,767,000 1,930, Prague, Czech Republic 1,614, , Pretoria, South Africa Riga, Latvia 936,000 87, Rome, Italy 1,076, , Saint-Petersburg, Russia 11,653,000 1,083, Sandton, South Africa 1,618, , Sofia, Bulgaria 6,376, , Stockholm, Sweden 834,000 78, Stuttgart, Germany 1,474, , Tallinn, Estonia 1,829, , Tel Aviv, Israel 753,000 70, Vienna, Austria 2,798, , Vilnius, Lithuania 1,614, , Warsaw, Poland 4,627, , Zagreb, Croatia 915,000 85, Zurich, Switzerland 538,000 50, LATIN AMERICA BBogotá, Colombia 4,574, , Buenos Aires, Argentina 880,000 82, Lima, Peru 3,412, , Mexico City, Mexico 4,535, , Rio de Janeiro, Brazil 1,786, , Santiago, Chile 4,304, , São Paulo, Brazil 4,259, , colliers.com

9 GLOBAL OFFICE MARKETS (CONTINUED) Under Construction December 2007 Vacancy Rate Vacancy Rate Vacancy Rate Market SF SM Dec (%) June 2007 (%) Dec (%) NORTH AMERICA Atlanta, USA 5,479, , Baltimore, USA 2,649, , Boston, USA 2,570, , Calgary, Canada 10,640, , Charlotte, USA 5,456, , Chicago, USA 6,251, , Cleveland, USA 255,000 24, Dallas/Ft. Worth, USA 5,425, , Denver, USA 2,643, , Detroit, USA 89,000 8, Edmonton, Canada 411,000 38, Ft. Lauderdale, USA Houston, USA 2,648, , Jacksonville, USA 372,000 35, Kansas City, USA 1,200, , Las Vegas, USA 1,520, , Los Angeles, USA 3,268, , Memphis, USA 359,000 33, Miami, USA 59,000 5, Milwaukee, USA Minneapolis, USA 2,235, , Montreal, Canada 836,000 78, New Jersey - Northern, USA 498,000 46, New York - Downtown, USA 4,600, , New York - Midtown, USA 3,530, , Orlando, USA 2,372, , Ottawa, Canada 1,020,000 95, Philadelphia, USA 717,000 67, Phoenix, USA 7,271, , Portland, USA 1,459, , Raleigh/Durham, USA 2,427, , Sacramento, USA 3,104, , San Diego, USA 2,837, , San Francisco, USA 2,617, , San Jose - Silicon Valley, USA 42,000 4, Seattle, USA 5,546, , St. Louis, USA 1,449, , Tampa, USA 1,585, , Toronto, Canada 5,382, , Vancouver, Canada 837,000 78, Washington, USA 15,018,000 1,396, ASIA PACIFIC Adelaide, Australia 550,000 51, Auckland, New Zealand 968,000 90, Bangalore, India 6,500, , Beijing, China 18,059,000 1,678, Brisbane, Australia 992,000 92, Chennai, India 5,000, , Delhi, India 15,705,000 1,460, Guangzhou, China 30,624,000 2,846, Hong Kong, China 31,000 3, Jakarta, Indonesia 7,416, , Manila, Philippines 799,000 74, Melbourne, Australia 4,855, , Mumbai (Bombay), India 2,120, , Perth, Australia 1,909, , Seoul, South Korea 2,241, , Shanghai, China 30,946,000 2,876, Singapore 4,219, , Sydney, Australia 1,742, , Taipei,Taiwan 2,295, , Tokyo Central Wards (6), Japan 7,209, , Wellington, New Zealand 484,000 45, colliers.com 7

10 LOCAL MEASURE/CURRENCY CBD RENTS Measure Class A Class A Top Class A Top Class A Quoted Time Net Rent Gross Rent Net Rent Gross Rent Market Currency Period Unit Dec Dec Dec Dec EUROPE/MIDDLE EAST/AFRICA Abu Dhabi, UAE AED Year SM 1, , , , Amsterdam,The Netherlands EUR Year SM Antwerp, Belgium EUR Year SM Athens, Greece EUR Month SM Basel, Switzerland CHF Year SM Belgrade, Serbia EUR Month SM Berlin, Germany EUR Month SM Birmingham, UK GBP Year SF Bratislava, Slovakia EUR Month SM Brussels, Belgium EUR Year SM Bucharest, Romania EUR Month SM Budapest, Hungary EUR Month SM Cape Town, South Africa ZAR Month SM Copenhagen, Denmark DKK Year SM 1, , , , Doha, Qatar QAR Month SM Dubai, UAE AED Year SF Dublin, Ireland EUR Year SM Durban, South Africa ZAR Month SM Düsseldorf, Germany EUR Month SM Eindhoven, Netherlands EUR Year SM Frankfurt, Germany EUR Month SM Geneva, Switzerland CHF Year SM , , Hamburg, Germany EUR Month SM Helsinki, Finland EUR Month SM Istanbul,Turkey USD Month SM Johannesburg, South Africa ZAR Month SM Kiev, Ukraine USD Month SM London City, UK GBP Year SF London Docklands, UK GBP Year SF London West End, UK GBP Year SF Madrid, Spain EUR Month SM Manchester, UK GBP Year SF Milan, Italy EUR Year SM Moscow, Russia USD Year SM 1, , , , Munich, Germany EUR Month SM Oslo, Norway NOK Year SM 4, , Paris, France EUR Year SM Prague, Czech Republic EUR Month SM Pretoria, South Africa ZAR Month SM Riga, Latvia EUR Month SM Rome, Italy EUR Year SM Saint-Petersburg, Russia USD Year SM , Sandton, South Africa ZAR Month SM Sofia, Bulgaria EUR Month SM Stockholm, Sweden SEK Year SM 4, , , , Stuttgart, Germany EUR Month SM Tallinn, Estonia EUR Month SM Tel Aviv, Israel USD Month SM Vienna, Austria EUR Month SM Vilnius, Lithuania EUR Month SM Warsaw, Poland EUR Month SM Zagreb, Croatia EUR Month SM Zurich, Switzerland CHF Year SM LATIN AMERICA Bogotá, Colombia USD Month SM Buenos Aires, Argentina USD Month SM Lima, Peru USD Month SM Mexico City, Mexico USD Month SM Rio de Janeiro, Brazil BRL Month SM Santiago, Chile CLP Year SM 11, , , , São Paulo, Brazil BRL Month SM colliers.com

11 LOCAL MEASURE/CURRENCY CBD RENTS (CONTINUED) Measure Class A Class A Top Class A Top Class A Quoted Time Net Rent Gross Rent Net Rent Gross Rent Market Currency Period Unit Dec Dec Dec Dec NORTH AMERICA Atlanta, USA USD Year SF Baltimore, USA USD Year SF Boston, USA USD Year SF Calgary, Canada USD Year SF Charlotte, USA USD Year SF Chicago, USA USD Year SF Cleveland, USA USD Year SF Dallas/Ft. Worth, USA USD Year SF Denver, USA USD Year SF Detroit, USA USD Year SF Edmonton, Canada USD Year SF Ft. Lauderdale, USA USD Year SF Houston, USA USD Year SF Jacksonville, USA USD Year SF Kansas City, USA USD Year SF Las Vegas, USA USD Year SF Los Angeles, USA USD Year SF Memphis, USA USD Year SF Miami, USA USD Year SF Milwaukee, USA USD Year SF Minneapolis, USA USD Year SF Montreal, Canada USD Year SF New York - Downtown, USA USD Year SF New York - Midtown, USA USD Year SF Orlando, USA USD Year SF Ottawa, Canada USD Year SF Philadelphia, USA USD Year SF Phoenix, USA USD Year SF Portland, USA USD Year SF Raleigh/Durham, USA USD Year SF Sacramento, USA USD Year SF San Diego, USA USD Year SF San Francisco, USA USD Year SF San Jose - Silicon Valley, USA USD Year SF Seattle, USA USD Year SF St. Louis, USA USD Year SF Tampa, USA USD Year SF Toronto, Canada USD Year SF Vancouver, Canada USD Year SF Washington, USA USD Year SF ASIA PACIFIC Adelaide, Australia AUD Year SM Auckland, New Zealand NZD Year SM Bangalore, India INR Month SF Beijing, China USD Year SF Brisbane, Australia AUD Year SM , , Chennai, India INR Month SF Delhi, India INR Month SF Guangzhou, China USD Month SM Hong Kong, China HKD Month SF Jakarta, Indonesia IDR Month SM 85, , , , Manila, Philippines PHP Year SM 13, , , , Melbourne, Australia AUD Year SM Mumbai (Bombay), India INR Month SF Perth, Australia AUD Year SM Seoul, South Korea KRW Month SM 25, , , , Shanghai, China USD Month SM Singapore SGD Month SF Sydney, Australia AUD Year SM , , Taipei,Taiwan NTD Month Ping 2, , , , Tokyo Central Wards (6), Japan JPY Year SM 152, , Wellington, New Zealand NZD Year SM colliers.com 9

12 US DOLLARS CBD MARKETS Class A Net Class A Gross Top Class A Net Top Class A Gross CBD Sales CBD Cap Short Term Rent Dec Rent Dec Rent Dec Rent Dec Price Rate/Initial Interest Market (PSF/USD/Year) (PSF/USD/Year) (PSF/USD/Year) (PSF/USD/Year) (PSF/USD) Yield (%) Rates (%) EUROPE/MIDDLE EAST/AFRICA Abu Dhabi, UAE , Amsterdam,The Netherlands Antwerp, Belgium , Athens, Greece , Basel, Switzerland , Belgrade, Serbia , Berlin, Germany , Birmingham, UK Bratislava, Slovakia , Brussels, Belgium Bucharest, Romania Budapest, Hungary , Cape Town, South Africa Copenhagen, Denmark , Doha, Qatar Dubai, UAE , Dublin, Ireland , Durban, South Africa Düsseldorf, Germany , Eindhoven, Netherlands Frankfurt, Germany Geneva, Switzerland , Hamburg, Germany Helsinki, Finland Istanbul,Turkey , Johannesburg, South Africa Kiev, Ukraine , London City, UK , London Docklands, UK London West End, UK , Madrid, Spain , Manchester, UK Milan, Italy , Moscow, Russia , Munich, Germany , Oslo, Norway Paris, France , Prague, Czech Republic , Pretoria, South Africa Riga, Latvia , Rome, Italy , Saint-Petersburg, Russia , Sandton, South Africa Sofia, Bulgaria Stockholm, Sweden , Stuttgart, Germany , Tallinn, Estonia , Tel Aviv, Israel , Vienna, Austria , Vilnius, Lithuania Warsaw, Poland , Zagreb, Croatia , Zurich, Switzerland , LATIN AMERICA Bogotá, Colombia , Buenos Aires, Argentina , Lima, Peru , Mexico City, Mexico , Rio de Janeiro, Brazil , Santiago, Chile ,020, São Paulo, Brazil , colliers.com

13 US DOLLARS CBD MARKETS (CONTINUED) Class A Net Class A Gross Top Class A Net Top Class A Gross CBD Sales CBD Cap Short Term Rent Dec Rent Dec Rent Dec Rent Dec Price Rate/Initial Interest Market (PSF/USD/Year) (PSF/USD/Year) (PSF/USD/Year) (PSF/USD/Year) (PSF/USD) Yield (%) Rates (%) NORTH AMERICA Atlanta, USA Baltimore, USA Boston, USA Calgary, Canada Charlotte, USA Chicago, USA Cleveland, USA Dallas/Ft. Worth, USA Denver, USA Detroit, USA Edmonton, Canada Ft. Lauderdale, USA Houston, USA Jacksonville, USA Kansas City, USA Las Vegas, USA Los Angeles, USA Memphis, USA Miami, USA Milwaukee, USA Minneapolis, USA Montreal, Canada New York - Downtown, USA New York - Midtown, USA , Orlando, USA Ottawa, Canada Philadelphia, USA Phoenix, USA Portland, USA Raleigh/Durham, USA Sacramento, USA San Diego, USA San Francisco, USA San Jose - Silicon Valley, USA Seattle, USA St. Louis, USA Tampa, USA Toronto, Canada Vancouver, Canada Washington, USA ASIA PACIFIC Adelaide, Australia , Auckland, New Zealand , Bangalore, India , Beijing, China Brisbane, Australia , Chennai, India , Delhi, India , Guangzhou, China , Hong Kong, China , Jakarta, Indonesia ,770, Manila, Philippines , Melbourne, Australia , Mumbai (Bombay), India , Perth, Australia , Seoul, South Korea ,050, Shanghai, China , Singapore , Sydney, Australia , Taipei,Taiwan Tokyo Central Wards (6), Japan ,297, Wellington, New Zealand , colliers.com 11

14 LOCAL MEASURE/CURRENCY SUBURBAN/OUT-OF-TOWN RENTS Measure Class A Class A Top Class A Top Class A Quoted Time Net Rent Gross Rent Net Rent Gross Rent Market Currency Period Unit Dec Dec Dec Dec EUROPE/MIDDLE EAST/AFRICA Abu Dhabi, UAE AED Year SM 1, , , , Amsterdam,The Netherlands EUR Year SM Antwerp, Belgium EUR Year SM Athens, Greece EUR Month SM Basel, Switzerland CHF Year SM Belgrade, Serbia EUR Month SM Berlin, Germany EUR Month SM Bratislava, Slovakia EUR Month SM Brussels, Belgium EUR Year SM Budapest, Hungary EUR Month SM Cape Town, South Africa ZAR Month SM Copenhagen, Denmark DKK Year SM , , , Dubai, UAE AED Year SF Dublin, Ireland EUR Year SM Durban, South Africa ZAR Month SM Düsseldorf, Germany EUR Month SM Eindhoven, Netherlands EUR Year SM Frankfurt, Germany EUR Month SM Geneva, Switzerland CHF Year SM Helsinki, Finland EUR Month SM Johannesburg, South Africa ZAR Month SM Madrid, Spain EUR Month SM Milan, Italy EUR Year SM Munich, Germany EUR Month SM Oslo, Norway NOK Year SM 2, , Paris, France EUR Year SM Prague, Czech Republic EUR Month SM Pretoria, South Africa ZAR Month SM Riga, Latvia EUR Month SM Rome, Italy EUR Year SM Saint-Petersburg, Russia USD Year SM Sandton, South Africa ZAR Month SM Sofia, Bulgaria EUR Month SM Stockholm, Sweden SEK Year SM 2, , , , Stuttgart, Germany EUR Month SM Tallinn, Estonia EUR Month SM Tel Aviv, Israel USD Month SM Vienna, Austria EUR Month SM Vilnius, Lithuania EUR Month SM Warsaw, Poland EUR Month SM Zagreb, Croatia EUR Month SM Zurich, Switzerland CHF Year SM LATIN AMERICA Buenos Aires, Argentina USD Month SM Lima, Peru USD Month SM Mexico City, Mexico USD Month SM Rio de Janeiro, Brazil BRL Month SM São Paulo, Brazil BRL Month SM colliers.com

15 LOCAL MEASURE/CURRENCY SUBURBAN/OUT-OF-TOWN RENTS (CONTINUED) Measure Class A Class A Top Class A Top Class A Quoted Time Net Rent Gross Rent Net Rent Gross Rent Market Currency Period Unit Dec Dec Dec Dec NORTH AMERICA Atlanta, USA USD Year SF Baltimore, USA USD Year SF Boston, USA USD Year SF Calgary, Canada USD Year SF Charlotte, USA USD Year SF Chicago, USA USD Year SF Cleveland, USA USD Year SF Dallas/Ft. Worth, USA USD Year SF Denver, USA USD Year SF Detroit, USA USD Year SF Edmonton, Canada USD Year SF Ft. Lauderdale, USA USD Year SF Houston, USA USD Year SF Jacksonville, USA USD Year SF Kansas City, USA USD Year SF Los Angeles, USA USD Year SF Memphis, USA USD Year SF Miami, USA USD Year SF Milwaukee, USA USD Year SF Minneapolis, USA USD Year SF Montreal, Canada USD Year SF New Jersey - Northern, USA USD Year SF Orlando, USA USD Year SF Ottawa, Canada USD Year SF Philadelphia, USA USD Year SF Phoenix, USA USD Year SF Portland, USA USD Year SF Raleigh/Durham, USA USD Year SF Sacramento, USA USD Year SF San Diego, USA USD Year SF San Jose - Silicon Valley, USA USD Year SF Seattle, USA USD Year SF St. Louis, USA USD Year SF Tampa, USA USD Year SF Toronto, Canada USD Year SF Vancouver, Canada USD Year SF Washington, USA USD Year SF ASIA PACIFIC Adelaide, Australia AUD Year SM Bangalore, India INR Month SF Beijing, China USD Year SF Brisbane, Australia AUD Year SM Chennai, India INR Month SF Delhi, India INR Month SF Hong Kong, China HKD Month SF Jakarta, Indonesia IDR Month SM 91, , , , Manila, Philippines PHP Year SM 6, , , , Melbourne, Australia AUD Year SM Mumbai (Bombay), India INR Month SF Seoul, South Korea KRW Month SM 18, , , , Shanghai, China USD Month SM Singapore SGD Month SF Sydney, Australia AUD Year SM colliers.com 13

16 US DOLLAR SUBURBAN/OUT-OF-TOWN Class A Net Class A Gross Top Class A Net Top Class A Gross Suburban Suburban Cap Short Term Rent Dec Rent Dec Rent Dec Rent Dec Sales Price Rate/Initial Interest Market (PSF/USD/Year) (PSF/USD/Year) (PSF/USD/Year) (PSF/USD/Year) (PSF/USD) Yield (%) Rates (%) EUROPE/MIDDLE EAST/AFRICA Abu Dhabi, UAE Amsterdam,The Netherlands Antwerp, Belgium Athens, Greece Basel, Switzerland Belgrade, Serbia Berlin, Germany Bratislava, Slovakia Brussels, Belgium Budapest, Hungary Cape Town, South Africa Copenhagen, Denmark Dubai, UAE Dublin, Ireland Durban, South Africa Düsseldorf, Germany Eindhoven, Netherlands Frankfurt, Germany Geneva, Switzerland Hamburg, Germany Helsinki, Finland Johannesburg, South Africa Madrid, Spain Milan, Italy Moscow, Russia Munich, Germany Oslo, Norway Paris, France , Prague, Czech Republic Pretoria, South Africa Riga, Latvia Rome, Italy Saint-Petersburg, Russia Sandton, South Africa Sofia, Bulgaria Stockholm, Sweden Stuttgart, Germany Tallinn, Estonia Tel Aviv, Israel Vienna, Austria Vilnius, Lithuania Warsaw, Poland Zagreb, Croatia Zurich, Switzerland LATIN AMERICA Buenos Aires, Argentina Lima, Peru Mexico City, Mexico Rio de Janeiro, Brazil São Paulo, Brazil colliers.com

17 US DOLLAR SUBURBAN/OUT-OF-TOWN (CONTINUED) Class A Net Class A Gross Top Class A Net Top Class A Gross Suburban Suburban Cap Short Term Rent Dec Rent Dec Rent Dec Rent Dec Sales Price Rate/Initial Interest Market (PSF/USD/Year) (PSF/USD/Year) (PSF/USD/Year) (PSF/USD/Year) (PSF/USD) Yield (%) Rates (%) NORTH AMERICA Atlanta, USA Baltimore, USA Boston, USA Calgary, Canada Charlotte, USA Chicago, USA Cleveland, USA Dallas/Ft. Worth, USA Denver, USA Detroit, USA Edmonton, Canada Ft. Lauderdale, USA Houston, USA Jacksonville, USA Kansas City, USA Las Vegas, USA Los Angeles, USA Memphis, USA Miami, USA Milwaukee, USA Minneapolis, USA Montreal, Canada New Jersey - Northern, USA Orlando, USA Ottawa, Canada Philadelphia, USA Phoenix, USA Portland, USA Raleigh/Durham, USA Sacramento, USA San Diego, USA San Jose - Silicon Valley, USA Seattle, USA St. Louis, USA Tampa, USA Toronto, Canada Vancouver, Canada Washington, USA ASIA PACIFIC Adelaide, Australia Auckland, New Zealand Bangalore, India Beijing, China Brisbane, Australia Chennai, India Delhi, India Hong Kong, China Jakarta, Indonesia Manila, Philippines Melbourne, Australia Mumbai (Bombay), India Seoul, South Korea Shanghai, China Singapore Sydney, Australia Wellington, New Zealand colliers.com 15

18 COLLIERS INTERNATIONAL l GLOBAL OFFICE REAL ESTATE REVIEW 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. 16 colliers.com

19 COLLIERS INTERNATIONAL l GLOBAL OFFICE REAL ESTATE REVIEW 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. US $1.6 Billion ( 1.2 Billion) in Revenue 673 Million SF (63 Million SM) Under Management 10,092 Professionals 57 Countries 6 Continents 267 OFFICES WORLDWIDE 57 COUNTRIES ON 6 CONTINENTS 129 Americas 95 United States 17 Canada 17 Latin America 85 Europe, Middle East & Africa 53 Asia Pacific 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 Latvia Lithuania Mexico Netherlands New Zealand Norway Pakistan Peru Philippines Poland Portugal Romania Russia Saudi Arabia Serbia Singapore Slovak Republic South Africa South Korea Spain Sweden Switzerland Taiwan Thailand Turkey Ukraine United Arab Emirates United Kingdom United States Vietnam colliers.com 17