Office Markets Beginning to Show Signs of Bottoming Out

OFFiCE north america HIGHLIGHTS Office Markets Beginning to Show Signs of Bottoming Out MarKet indicators Relative to prior period VaCanCY net absorption ConstrUCtion Q2 Q3 * ross J. Moore Chief Economist USA Although the economy finished the quarter on a sluggish note, leasing activity remained relatively robust through the April-June period, helping to stabilize market fundamentals after a prolonged period of weakening. Both Canadian and U.S. vacancies rose during the quarter although the latest increases were relatively muted. Demand was mixed, with U.S. markets only recording mildly positive absorption while Canadian markets registered more substantial growth. With both the U.S. and Canadian economies posting relatively robust growth in the second quarter and a further stabilization in the labor market, leasing markets are expected to continue improving, albeit only in small increments and not dramatically before mid-2011 at the earliest. rental rate Usa office MarKet summary statistics, Vacancy Rate: 16.34% Change from Q1 : 0.02 Absorption: 2.7 Million Square Feet New Construction: 11.1 Million Square Feet Under Construction: 29.2 Million Square Feet *Projected Asking Rents Per Square Foot (Change from Q1 ): Downtown Class A: $38.53 (1.0%) Suburban Class A: $26.24 ( 1.3%) The second quarter reaffirms our view that the first half of was a period of transition from dramatically rising vacancies and falling rents to more modest movements in both and a possible reversal in the coming quarters. Calling into question the idea of a swift recovery, however, is a noticeable downshift in the economy and a still stubbornly high unemployment rate. More encouraging, however is the six month long gain in private sector employment, suggesting the recent improvement in office leasing activity may be sustainable beyond a quarter or two. U.s. office vacancy rate up again, but only marginally. The U.S. national office vacancy rate moved slightly higher during the second quarter, moving just 2 basis points (100 basis points equals one U.s. office MarKet Q2 2009 Million Square Feet 30 20 10 0-10 -20-30 Q2 2009 Q3 2009 Q4 2009 Q1 17% 16 15 14 13 Vacancy continued on page 7 The Great Recession pushed the U.S. office vacancy rate over 16%, but now that vacancies appear to have peaked, the question now becomes what next? Absorption Completions Vacancy WWW.Colliers.CoM

highlights office north America UNITED STATES DOWNTOWN OFFICE ALL INVENTORY INVENTORY UNDER CONSTRUCTION Mar. 31, Atlanta, GA 57,263,000 0 753,000 0 15.4 15.3 38,000 (69,000) Bakersfield, CA 2,932,000 0 0 0 7.7 6.9 25,000 11,000 Baltimore, MD 22,159,000 0 28,000 0 15.9 16.5 (97,000) (58,000) Boise, ID 3,470,000 0 0 0 11.6 10.6 32,000 48,000 Boston, MA 58,000,000 0 0 1,594,000 14.7 15.5 (506,000) (1,150,000) Charleston, SC 2,092,000 0 0 0 8.5 8.5 0 0 Charlotte, NC 22,099,000 750,000 2,050,000 0 11.4 14.9 (93,000) 133,000 Chicago, IL 131,254,000 0 679,000 0 17.5 17.2 433,000 5,000 Cincinnati, OH 11,920,000 0 0 805,000 17.7 18.3 (71,000) (107,000) Cleveland 31,844,000 0 0 0 16.8 16.6 66,000 298,000 Columbia, SC 4,586,000 0 190,000 0 28.6 27.1 (67,000) (86,000) Columbus, OH 13,318,000 0 0 0 14.9 15.3 119,000 76,000 Dallas/Fort Worth, TX 37,129,000 0 0 0 26.3 26.3 24,000 (239,000) Denver, CO 25,706,000 0 0 0 15.2 14.9 23,000 50,000 Detroit, MI 30,239,000 0 0 0 18.0 17.7 (59,000) (567,000) Fresno, CA 3,213,000 0 8,000 0 9.8 9.4 14,000 (2,000) Ft. Lauderdale/Broward Co., FL 9,029,000 13,000 13,000 0 13.9 13.9 16,000 (73,000) Greenville, SC 3,182,000 53,000 53,000 0 17.1 18.7 (50,000) (43,000) Hartford, CT 9,735,000 0 0 180,000 17.2 19.2 (168,000) (202,000) Honolulu, HI 8,081,000 0 0 0 11.2 11.8 (43,000) (93,000) Houston, TX 37,899,000 0 0 1,817,000 13.7 13.8 (45,000) (276,000) Jacksonville, FL 15,990,000 0 0 0 12.9 12.9 48,000 57,000 Kansas City, KS 26,481,000 0 0 0 15.2 15.0 (60,000) (56,000) Las Vegas, NV 3,590,000 0 0 0 12.9 14.3 (40,000) (111,000) Little Rock, AR 6,584,000 23,000 23,000 0 13.4 13.2 32,000 35,000 Los Angeles, CA 32,039,000 0 0 0 15.8 16.2 (118,000) (463,000) Louisville, KY 16,783,000 0 0 0 9.4 9.1 (22,000) 19,000 Memphis, TN 8,195,000 0 0 0 14.2 14.1 7,000 (28,000) Miami-Dade County, FL 17,158,000 752,000 1,335,000 606,000 18.8 22.4 4,000 89,000 Nashville, TN 30,741,000 284,000 474,000 55,000 14.8 14.4 207,000 400,000 New York, NY Downtown Manhattan 84,633,000 0 2,000,000 2,600,000 14.1 17.0 (2,446,000) (3,808,000) New York, NY Midtown Manhattan 200,280,000 0 1,100,000 0 14.2 13.3 1,713,000 3,115,000 New York, NY Midtown S. Manhattan 71,893,000 317,000 317,000 0 10.7 11.7 771,000 (160,000) Oakland, CA 17,023,000 0 0 62,000 13.3 12.5 (52,000) (95,000) Orlando, FL 11,876,000 0 0 389,000 15.0 14.5 51,000 62,000 Philadelphia, PA 41,436,000 0 0 0 12.7 12.6 22,000 (162,000) Phoenix, AZ 19,873,000 0 760,000 0 19.6 20.5 (2,000) 23,000 Pleasanton/Walnut Creek, CA 22,335,000 0 0 0 22.1 23.0 (960,000) (1,059,000) Portland, OR 33,054,000 369,000 369,000 62,000 9.1 8.7 (6,000) (104,000) Raleigh/Durham/Chapel Hill, NC 10,767,000 0 0 165,000 6.4 5.7 64,000 100,000 Reno, NV 1,327,000 0 0 0 25.2 28.8 (48,000) (48,000) Sacramento, CA 18,316,000 0 0 18,000 8.6 9.0 (72,000) (112,000) San Diego County, CA 10,207,000 0 0 0 17.4 16.8 57,000 21,000 San Francisco, CA 83,224,000 0 110,000 210,000 14.8 15.2 (331,000) (286,000) San Jose/Silicon Valley, CA 7,593,000 0 0 0 25.3 25.3 (50,000) (127,000) Seattle/Puget Sound, WA 43,629,000 890,000 890,000 1,629,000 18.2 15.7 277,000 412,000 St. Louis, MO 25,622,000 0 0 0 15.2 15.3 25,000 38,000 Stamford, CT 18,548,000 0 0 400,000 17.6 17.6 7,000 (674,000) Stockton/San Joaquin County, CA 8,500,000 0 0 0 18.8 18.1 37,000 94,000 Tampa, FL 9,372,000 0 14,000 0 15.8 15.2 59,000 97,000 Washington, DC 141,413,000 1,672,000 1,923,000 1,901,000 11.5 11.8 384,000 564,000 West Palm Beach/Palm Beach Co., FL 9,738,000 0 0 0 19.1 19.0 15,000 27,000 White Plains, NY 8,172,000 0 0 0 14.2 11.6 217,000 215,000 U.S. TOTAL/AVERAGE 1,581,543,000 5,123,000 13,089,000 12,494,000 14.87 15.01 (837,000) (4,483,000) p. 2 Colliers International

highlights office north America united states downtown office class a INVENTORY MAR. 31, june 30, AVERAGE ANNUAL QUOTED RENT (USD PSF) QUARTERLY Atlanta, GA 31,558,000 20.3 19.8 150,000 164,000 21.30 (0.79) (2.65) Bakersfield, CA 670,000 6.1 6.0 1,000 16,000 17.40 0.00 0.00 Baltimore, MD 9,799,000 17.6 18.1 (49,000) (31,000) 24.20 (0.94) (3.31) Boise, ID 2,038,000 5.5 5.2 5,000 15,000 18.00 0.00 (12.20) Boston, MA 39,370,000 13.2 14.0 (297,000) (523,000) 45.50 (2.65) (9.11) Charleston, SC 1,059,000 7.4 7.4 0 0 24.20 1.47 (16.45) Charlotte, NC 15,592,000 13.3 18.1 (95,000) 140,000 26.50 (2.96) (12.52) Chicago, IL 73,943,000 18.3 18.1 124,000 98,000 32.00 0.00 (9.86) Cincinnati, OH 5,996,000 18.3 18.9 (36,000) (41,000) 21.90 0.37 (6.90) Cleveland 8,928,000 12.7 12.4 28,000 26,000 20.70 (0.10) (1.53) Columbia, SC 2,250,000 18.0 14.0 90,000 (39,000) 19.70 2.39 (0.46) Columbus, OH 5,600,000 16.2 15.0 (4,000) 70,000 20.50 (0.53) (11.18) Dallas/Fort Worth, TX 22,606,000 23.2 23.3 (13,000) (242,000) 25.30 (0.39) (0.98) Denver, CO 18,097,000 15.1 15.1 (78,000) 72,000 26.50 (1.85) (5.36) Detroit, MI 11,563,000 18.1 18.0 (21,000) (338,000) 22.60 (0.62) (0.13) Fresno, CA 1,039,000 8.8 8.7 1,000 11,000 24.60 0.00 (2.38) Ft. Lauderdale/Broward Co., FL 4,479,000 20.3 20.6 (13,000) (56,000) 32.80 0.28 2.50 Greenville, SC 1,897,000 13.6 9.8 (5,000) (5,000) 20.50 0.94 (5.01) Hartford, CT 6,398,000 18.1 20.2 (140,000) (165,000) 23.30 (0.51) (0.94) Honolulu, HI 4,717,000 12.2 12.7 (25,000) (73,000) 35.90 1.24 (1.56) Houston, TX 27,806,000 8.9 9.0 (25,000) (242,000) 35.90 0.82 (7.53) Jacksonville, FL 6,659,000 16.2 16.0 18,000 (5,000) 20.00 (1.04) (4.71) Kansas City, KS 7,933,000 22.4 22.4 42,000 53,000 20.90 1.60 3.87 Las Vegas, NV 700,000 7.3 11.1 (15,000) (26,000) 34.90 2.95 (11.10) Little Rock, AR 2,636,000 12.7 12.6 23,000 (31,000) 16.50 0.00 0.92 Los Angeles, CA 15,084,000 14.5 15.1 (86,000) (450,000) 38.90 0.00 (2.41) Louisville, KY 3,924,000 8.4 8.2 (22,000) (6,000) 22.20 (3.35) 5.42 Memphis, TN 1,901,000 23.2 23.0 4,000 1,000 17.10 0.12 1.25 Miami-Dade County, FL 9,144,000 18.8 25.3 22,000 63,000 42.00 (0.66) (3.36) Nashville, TN 3,810,000 25.6 24.7 (6,000) 57,000 26.00 15.78 16.88 New York, NY Downtown Manhattan 58,670,000 16.5 15.4 893,000 1,566,000 39.80 0.18 (18.07) New York, NY Midtown Manhattan 161,280,000 16.5 15.3 1,792,000 3,044,000 62.80 (1.63) (9.89) New York, NY Midtown S. Manhattan 29,954,000 16.9 14.0 1,118,000 1,362,000 42.40 2.89 (17.23) Oakland, CA 10,198,000 10.4 10.3 8,000 (44,000) 31.00 1.18 (9.47) Orlando, FL 5,583,000 18.2 17.0 68,000 21,000 24.40 (0.61) (11.93) Philadelphia, PA 31,558,000 11.5 11.4 18,000 (127,000) 26.10 0.12 1.48 Phoenix, AZ 10,146,000 19.0 21.4 (41,000) 99,000 25.50 (5.17) (11.50) Pleasanton/Walnut Creek, CA 13,047,000 21.7 22.3 (539,000) (586,000) 26.30 3.34 (3.10) Portland, OR 12,898,000 7.5 8.1 (90,000) (124,000) 24.20 (0.82) (3.59) Raleigh/Durham/Chapel Hill, NC 4,414,000 8.3 6.6 54,000 54,000 22.80 (4.28) 0.62 Reno, NV 548,000 20.2 23.5 (18,000) (32,000) 23.50 (2.00) 5.95 Sacramento, CA 8,910,000 9.5 10.1 (45,000) (60,000) 33.00 (3.17) (3.51) San Diego County, CA 6,977,000 16.5 16.0 38,000 30,000 29.90 (1.58) (10.75) San Francisco, CA 52,123,000 14.5 15.2 (392,000) (299,000) 33.30 1.80 (2.54) San Jose/Silicon Valley, CA 3,365,000 34.2 35.1 (35,000) (84,000) 35.40 (2.99) (5.75) Seattle/Puget Sound, WA 27,738,000 19.9 15.7 366,000 536,000 27.60 3.80 (13.99) St. Louis, MO 11,831,000 14.2 13.7 55,000 153,000 19.30 (0.36) (6.03) Stamford, CT 12,506,000 18.9 18.7 30,000 (592,000) 37.00 0.00 Stockton/San Joaquin County, CA 2,722,000 29.3 27.5 49,000 146,000 20.60 (4.63) 5.32 Tampa, FL 4,809,000 20.0 19.3 35,000 55,000 22.80 0.09 7.30 Washington, DC 84,508,000 14.8 14.9 1,491,000 1,882,000 51.30 0.43 3.26 West Palm Beach/Palm Beach Co., FL 3,310,000 22.5 23.1 (21,000) (9,000) 37.50 (2.27) White Plains, NY 5,402,000 18.3 14.2 221,000 223,000 29.20 0.00 (24.02) U.S. TOTAL/AVERAGE 909,695,000 16.12 15.82 4,635,000 5,727,000 38.50 weighted 1.03 (6.36) 28.40 equal (0.16) (4.50) ANNUAL Colliers International p. 3

highlights office north America UNITED STATES SUBURBAN OFFICE ALL INVENTORY INVENTORY UNDER CONSTRUCTION Mar. 31, Atlanta, GA 189,692,000 0 952,000 235,000 18.0 17.9 147,000 (41,000) Bakersfield, CA 5,968,000 0 39,000 0 10.3 10.0 17,000 95,000 Baltimore, MD 102,584,000 419,000 558,000 1,371,000 12.5 12.8 159,000 584,000 Boise, ID 10,528,000 0 0 134,000 20.3 20.7 (35,000) (75,000) Boston, MA 102,774,000 0 0 356,000 19.7 19.5 333,000 422,000 Charleston, SC 8,497,000 563,000 563,000 0 22.1 20.4 578,000 578,000 Charlotte, NC 70,145,000 19,000 55,000 342,000 14.9 15.3 (94,000) 7,000 Chicago, IL 105,448,000 119,000 204,000 110,000 24.2 24.1 288,000 (83,000) Cincinnati, OH 25,078,000 0 202,000 35,000 24.9 24.7 65,000 (168,000) Cleveland 73,329,000 22,000 22,000 16,000 11.0 10.7 71,000 89,000 Columbia, SC 4,782,000 0 0 0 20.2 21.3 (49,000) (94,000) Columbus, OH 35,516,000 0 0 90,000 17.9 17.2 267,000 114,000 Dallas/Fort Worth, TX 265,976,000 509,000 1,572,000 1,499,000 17.6 17.7 (6,000) (588,000) Denver, CO 128,681,000 516,000 529,000 0 15.1 15.0 443,000 (353,000) Detroit, MI 99,616,000 16,000 16,000 159,000 20.4 20.9 (127,000) (54,000) Fairfield, CA 3,521,000 0 0 0 26.6 26.8 (6,000) (99,000) Fairfield County, CT 59,071,000 0 0 420,000 12.6 12.6 (16,000) (827,000) Fresno, CA 17,768,000 5,000 132,000 0 15.2 15.7 (74,000) (14,000) Ft. Lauderdale/Broward Co., FL 44,311,000 0 183,000 0 14.9 15.1 (85,000) 120,000 Greenville, SC 4,335,000 0 0 0 21.5 21.3 2,000 53,000 Hartford, CT 12,357,000 0 0 14,000 16.3 15.3 106,000 (62,000) Honolulu, HI 7,690,000 0 0 0 10.7 11.0 (33,000) (74,000) Houston, TX 157,940,000 34,000 34,000 417,000 16.9 17.1 (271,000) 159,000 Jacksonville, FL 42,256,000 34,000 34,000 138,000 16.5 16.1 251,000 354,000 Kansas City, KS 77,817,000 0 4,000 71,000 13.3 12.9 20,000 (8,000) Las Vegas, NV 38,360,000 0 88,000 213,000 25.1 25.7 (363,000) (402,000) Little Rock, AR 7,433,000 (28,000) (9,000) 22,000 10.4 10.3 33,000 (180,000) Los Angeles Inland Empire, CA 21,938,000 0 41,000 0 24.3 24.7 (57,000) (35,000) Los Angeles, CA 165,877,000 362,000 518,000 781,000 17.0 17.7 (779,000) (1,731,000) Louisville, KY 49,788,000 0 0 174,000 11.7 11.8 (442,000) (261,000) Memphis, TN 27,896,000 0 0 0 13.5 13.0 141,000 96,000 Miami-Dade County, FL 64,745,000 0 160,000 464,000 15.1 14.8 185,000 247,000 Nashville, TN 23,180,000 284,000 474,000 55,000 12.0 11.5 201,000 332,000 New Jersey Central 66,074,000 46,000 46,000 255,000 22.4 22.2 90,000 (628,000) New Jersey Northern 96,214,000 0 0 58,000 17.8 17.7 3,000 117,000 Oakland, CA 15,877,000 0 0 0 17.4 17.1 57,000 59,000 Orange County, CA 77,351,000 0 0 0 23.2 23.6 (456,000) (1,464,000) Orlando, FL 54,217,000 0 53,000 695,000 17.5 17.5 (8,000) (221,000) Philadelphia, PA 108,875,000 155,000 155,000 1,051,000 16.1 16.3 8,000 227,000 Phoenix, AZ 109,276,000 428,000 428,000 545,000 23.2 21.2 251,000 56,000 Pleasanton/Walnut Creek, CA 17,912,000 160,000 160,000 0 18.1 14.8 569,000 499,000 Portland, OR 44,861,000 0 14,000 0 12.8 13.0 (111,000) (90,000) Raleigh/Durham/Chapel Hill, NC 70,787,000 162,000 238,000 206,000 15.1 15.0 132,000 (112,000) Reno, NV 5,441,000 0 0 7,000 20.7 20.5 9,000 (3,000) Sacramento, CA 71,563,000 40,000 187,000 350,000 18.5 18.4 65,000 (52,000) San Diego County, CA 67,628,000 53,000 290,000 0 17.7 17.9 112,000 482,000 San Francisco Peninsula, CA 33,518,000 25,000 25,000 0 18.8 18.4 151,000 73,000 San Jose/Silicon Valley, CA 53,499,000 343,000 343,000 917,000 20.0 19.1 533,000 302,000 Seattle/Puget Sound, WA 63,643,000 473,000 473,000 876,000 17.2 16.3 125,000 (75,000) St. Louis, MO 96,178,000 54,000 66,000 785,000 10.8 10.9 (171,000) 161,000 Tampa, FL 71,429,000 0 0 0 16.4 16.6 (82,000) (405,000) Washington, DC 307,320,000 1,131,000 2,852,000 3,673,000 14.4 14.6 1,098,000 2,049,000 West Palm Beach/Palm Beach Co., FL 28,942,000 11,000 51,000 198,000 21.9 21.8 29,000 79,000 Westchester County, NY 45,840,000 0 0 0 11.1 10.7 218,000 144,000 U.S. TOTAL/AVERAGE 3,561,344,000 5,954,000 11,751,000 16,735,000 16.96 16.94 3,493,000 (706,000) p. 4 Colliers International

highlights office north America united states SUBURBAN office class a INVENTORY MAR. 31, JUNE 30, AVERAGE ANNUAL QUOTED RENT (USd PSF) QUARTERLY ANNUAL Atlanta, GA 80,939,000 19.3 19.5 (151,000) (197,000) 21.80 (0.32) (2.72) Bakersfield, CA 2,691,000 6.2 5.7 12,000 65,000 24.00 0.00 0.00 Baltimore, MD 31,687,000 18.7 18.6 216,000 442,000 26.30 7.70 (0.19) Boise, ID 4,564,000 21.9 22.0 (3,000) (1,000) 18.00 (1.37) (1.59) Boston, MA 43,688,000 19.8 18.7 495,000 647,000 26.40 0.69 (12.29) Charleston, SC 4,333,000 17.8 15.8 411,000 434,000 24.20 7.42 (8.79) Charlotte, NC 18,114,000 20.4 18.9 (99,000) 125,000 20.40 1.14 2.31 Chicago, IL 57,236,000 25.2 25.4 15,000 (195,000) 27.50 (0.36) (1.11) Cincinnati, OH 13,378,000 24.6 24.3 38,000 (169,000) 20.50 (0.05) (3.12) Cleveland 12,241,000 12.1 12.4 (35,000) (46,000) 22.00 1.20 3.48 Columbia, SC 996,000 20.3 20.9 (6,000) 17,000 17.00 (2.97) (5.52) Columbus, OH 11,565,000 14.9 15.2 (2,000) (161,000) 18.70 0.11 (3.86) Dallas/Fort Worth, TX 96,196,000 19.2 19.1 430,000 (347,000) 24.80 (0.40) (2.94) Denver, CO 42,126,000 19.7 19.6 334,000 60,000 20.80 0.00 (5.68) Detroit, MI 25,694,000 17.7 17.5 (57,000) (1,000) 22.40 (0.09) (3.82) Fairfield, CA 1,948,000 30.0 28.4 31,000 (29,000) 27.10 3.20 7.11 Fairfield County, CT 29,479,000 12.1 14.0 70,000 (611,000) 31.00 (2.70) Fresno, CA 3,810,000 23.7 24.2 (10,000) 70,000 25.20 0.00 (2.33) Ft. Lauderdale/Broward Co., FL 10,467,000 19.8 21.0 (127,000) (40,000) 28.20 (0.81) 0.61 Greenville, SC 1,772,000 21.4 21.7 (11,000) (5,000) 17.80 0.00 (4.67) Hartford, CT 7,479,000 17.7 16.8 61,000 (106,000) 20.40 0.20 (2.62) Houston, TX 68,602,000 19.0 19.6 (444,000) (138,000) 27.40 (1.90) (0.87) Jacksonville, FL 9,720,000 16.8 16.3 127,000 147,000 20.40 0.89 (3.05) Kansas City, KS 15,460,000 17.9 18.0 (11,000) (4,000) 21.50 (4.62) (3.50) Las Vegas, NV 4,918,000 38.2 36.7 1,000 0 32.90 (2.35) (7.46) Little Rock, AR 2,643,000 15.7 16.1 (14,000) (196,000) 18.50 0.00 1.53 Los Angeles Inland Empire, CA 4,953,000 34.7 33.5 61,000 441,000 26.00 (4.41) (4.82) Los Angeles, CA 100,895,000 16.9 17.8 (573,000) (1,290,000) 38.40 8.84 6.31 Louisville, KY 10,855,000 11.2 14.4 (46,000) (43,000) 20.00 4.43 13.56 Memphis, TN 7,132,000 9.9 8.6 90,000 26,000 21.30 (4.10) (1.98) Miami-Dade County, FL 15,199,000 22.1 21.7 62,000 64,000 32.90 2.68 (0.63) Nashville, TN 12,802,000 10.1 9.2 201,000 271,000 22.30 7.11 2.91 New Jersey Central 46,977,000 24.4 24.3 4,000 (761,000) 23.90 (7.11) (9.43) New Jersey Northern 63,713,000 17.2 17.7 (281,000) (76,000) 24.40 (0.41) (14.26) Oakland, CA 3,582,000 18.4 19.5 11,000 (66,000) 28.40 (0.84) (10.57) Orange County, CA 33,319,000 25.1 25.5 (150,000) (551,000) 27.40 (2.15) (12.31) Orlando, FL 16,387,000 20.5 20.8 (45,000) (281,000) 22.80 (0.74) (3.39) Philadelphia, PA 67,296,000 15.5 15.7 6,000 98,000 24.30 (0.61) (2.84) Phoenix, AZ 38,309,000 24.1 23.1 104,000 162,000 24.60 (2.45) (8.20) Pleasanton/Walnut Creek, CA 2,808,000 21.1 20.8 133,000 66,000 25.20 11.11 8.81 Portland, OR 12,553,000 12.8 12.3 (10,000) (122,000) 23.20 1.58 (1.99) Raleigh/Durham/Chapel Hill, NC 25,607,000 19.2 18.2 114,000 113,000 21.50 0.75 (3.33) Reno, NV 2,916,000 19.9 19.2 21,000 63,000 20.00 (2.34) (7.22) Sacramento, CA 16,051,000 24.3 25.0 (113,000) (105,000) 24.70 0.00 (4.19) San Diego County, CA 24,337,000 21.3 20.8 222,000 534,000 32.60 (1.81) (10.23) San Francisco Peninsula, CA 21,785,000 18.2 17.9 76,000 105,000 31.90 (2.56) (8.28) San Jose/Silicon Valley, CA 25,314,000 23.0 22.2 456,000 740,000 35.90 (0.36) (6.27) Seattle/Puget Sound, WA 21,943,000 19.0 20.6 18,000 (95,000) 26.50 2.95 (5.32) St. Louis, MO 24,762,000 11.2 11.4 (67,000) (150,000) 23.40 0.82 (6.44) Tampa, FL 23,470,000 17.4 17.9 (130,000) (103,000) 23.80 0.00 (5.03) Washington, DC 161,273,000 16.8 16.2 360,000 504,000 30.70 0.36 1.62 West Palm Beach/Palm Beach Co., FL 9,258,000 21.1 21.2 (8,000) 88,000 30.60 0.33 (1.16) Westchester County, NY 23,505,000 14.0 13.5 188,000 97,000 27.50 1.82 U.S. TOTAL/AVERAGE 1,418,744,000 18.79 18.80 1,978,000 (513,000) 26.20 weighted (1.31) (4.12) 24.90 equal 1.03 (3.30) Colliers International p. 5

highlights office north America CANADA DOWNTOWN OFFICE ALL INVENTORY INVENTORY UNDER CONSTRUCTION Mar. 31, Calgary, AB 37,775,000 1,292,000 2,511,000 2,982,000 12.7 15.2 177,000 643,000 Edmonton, AB 10,632,000 0 0 630,000 6.8 7.2 (44,000) (41,000) Halifax, NS 4,913,000 0 22,000 10,000 5.1 5.9 (41,000) (68,000) Kitchener-Waterloo, ON 2,040,000 0 12,000 126,000 17.1 14.2 58,000 71,000 Montreal, QC 49,429,000 0 0 0 6.9 6.7 100,000 171,000 Ottawa, ON 14,966,000 0 0 1,000 3.7 4.2 (73,000) (44,000) Regina, SK 3,762,000 0 0 0 1.4 1.5 (4,000) (9,000) Saskatoon, SK 2,009,000 0 0 34,000 6.0 4.6 27,000 31,000 Toronto, ON 88,671,000 461,000 662,000 641,000 5.5 5.4 217,000 132,000 Vancouver, BC 24,466,000 0 0 136,000 4.5 3.8 177,000 201,000 Victoria, BC 4,686,000 9,000 9,000 229,000 4.0 6.9 (90,000) (90,000) CANADA TOTAL/AVERAGE 243,349,000 1,762,000 3,216,000 4,789,000 6.73 7.10 505,000 997,000 CANADA downtown office class a INVENTORY MAR. 31, JUNE 30, AVERAGE ANNUAL QUOTED RENT (CAD PSF) QUARTERLY ANNUAL Calgary, AB 24,783,000 11.2 14.4 133,000 987,000 39.50 (2.47) (17.71) Edmonton, AB 8,254,000 6.0 6.7 (57,000) (73,000) 41.10 (1.39) (12.18) Halifax, NS 1,916,000 4.2 5.4 (23,000) (39,000) 31.60 (0.91) 0.32 Kitchener-Waterloo, ON 642,000 14.2 9.9 28,000 50,000 26.70 (3.58) (2.34) Montreal, QC 23,076,000 7.1 7.0 23,000 28,000 32.00 0.00 2.96 Ottawa, ON 9,001,000 3.7 4.5 (73,000) (58,000) 48.50 0.46 0.02 Regina, SK 1,026,000 0.7 1.0 (3,000) (11,000) 34.80 0.00 0.00 Saskatoon, SK 492,000 7.5 0.3 35,000 34,000 31.50 0.00 5.00 Toronto, ON 41,637,000 7.0 7.1 127,000 (90,000) 53.50 5.19 (0.07) Vancouver, BC 10,034,000 3.2 2.5 72,000 72,000 52.00 6.12 18.18 Victoria, BC 597,000 4.7 8.6 (17,000) (17,000) 37.00 0.00 CANADA TOTAL/AVERAGE 121,457,000 7.16 7.88 245,000 884,000 44.40 weighted 2.56 (2.14) 38.90 equal 0.28 (1.01) CANADA SUBURBAN OFFICE ALL INVENTORY INVENTORY UNDER CONSTRUCTION Mar. 31, Calgary, AB 17,526,000 186,000 186,000 55,000 11.3 11.4 139,000 141,000 Edmonton, AB 8,721,000 0 0 40,000 16.0 15.3 73,000 (149,000) Halifax, NS 6,143,000 60,000 109,000 80,000 14.1 13.9 (36,000) (11,000) Kitchener-Waterloo, ON 2,653,000 0 0 272,000 11.2 10.5 20,000 63,000 Montreal, QC 23,430,000 0 0 492,000 9.0 9.0 1,000 35,000 Ottawa, ON 19,721,000 0 0 182,000 8.1 7.5 124,000 269,000 Regina, SK 533,000 0 0 0 0.5 0.7 (1,000) (3,000) Toronto, ON 97,365,000 108,000 920,000 238,000 7.6 7.7 260,000 559,000 Vancouver, BC 28,520,000 0 294,000 544,000 10.3 10.0 63,000 86,000 Victoria, BC 3,525,000 60,000 60,000 33,000 5.1 6.7 3,000 3,000 CANADA TOTAL/AVERAGE 208,137,000 414,000 1,570,000 1,936,000 9.00 8.93 646,000 995,000 CANADA SUBURBAN office class a INVENTORY MAR. 31, JUNE 30, AVERAGE ANNUAL QUOTED RENT (CAD PSF) QUARTERLY ANNUAL Calgary, AB 8,409,000 10.4 11.2 99,000 143,000 32.00 (13.51) (7.91) Edmonton, AB 4,676,000 17.3 15.7 92,000 5,000 31.10 (2.05) (0.58) Halifax, NS 2,555,000 17.7 16.2 38,000 28,000 26.70 2.22 (1.84) Kitchener-Waterloo, ON 1,191,000 11.2 10.2 12,000 34,000 26.70 0.15 4.78 Montreal, QC 13,035,000 7.7 7.7 0 (23,000) 24.00 0.00 (3.42) Ottawa, ON 11,465,000 10.2 8.2 227,000 262,000 31.00 (4.29) 3.23 Regina, SK 533,000 0.5 0.7 (1,000) (3,000) 24.50 0.00 (12.50) Toronto, ON 42,724,000 7.9 7.8 190,000 372,000 31.20 8.71 4.84 Vancouver, BC 13,383,000 13.4 12.7 96,000 105,000 27.00 (1.82) (12.90) Victoria, BC 769,000 1.3 3.3 44,000 44,000 31.50 (4.55) CANADA TOTAL/AVERAGE 98,742,000 9.77 9.31 797,000 968,000 29.50 weighted 1.57 (0.65) 28.60 equal (0.58) (3.27) p. 6 Colliers International

highlights office north America UNITED STATES OFFICE INVESTMENT CBD SALES PRICE (USD PSF) CBD CAP RATE SUBURBAN SALES PRICE (USD PSF) SUBURBAN CAP RATE Atlanta, GA 180.00 8.50 140.00 9.10 Boston, MA 484.00 6.50 163.00 7.70 Charleston, SC 250.00 8.00 135.00 11.00 Chicago, IL 200.00 7.50 112.00 8.20 Cincinnati, OH 153.50 9.20 Cleveland 115.00 10.00 115.00 9.50 Dallas/Fort Worth, TX 90.00 9.00 Denver, CO 195.00 8.00 153.00 9.00 Fairfield County, CT 350.00 8.00 250.00 8.00 Fresno, CA 170.00 9.00 192.50 8.50 Ft. Lauderdale/Broward Co., FL 221.00 Hartford, CT 107.00 8.40 Honolulu, HI 242.00 Houston, TX 127.00 9.00 90.00 9.00 Jacksonville, FL 110.00 9.00 130.00 9.00 Las Vegas, NV 68.54 7.50 57.59 Little Rock, AR 88.00 9.25 110.00 9.00 Los Angeles, CA 300.00 7.00 250.00 9.00 Miami-Dade County, FL 210.00 216.00 8.00 Nashville, TN 7.00 7.00 New York, NY Downtown Manhattan 550.00 6.00 New York, NY Midtown Manhattan 424.00 6.50 New York, NY Midtown S. Manhattan 400.00 6.00 Oakland, CA 55.65 8.00 106.30 9.00 Orange County, CA 160.00 8.00 Orlando, FL 166.00 8.80 Philadelphia, PA 85.00 9.00 126.00 9.00 Phoenix, AZ 99.79 Pleasanton/Walnut Creek, CA 160.00 9.00 132.00 10.00 Portland, OR 88.70 159.39 Sacramento, CA 225.00 8.50 155.00 8.80 San Diego County, CA 117.90 San Francisco Peninsula, CA 250.00 6.50 San Francisco, CA 356.00 6.75 Seattle/Puget Sound, WA 225.00 Stockton/San Joaquin County, CA 130.00 9.00 Tampa, FL 131.50 9.00 Washington, DC 586.00 7.10 289.00 8.20 West Palm Beach/Palm Beach Co., FL 112.00 Westchester County, NY 350.00 8.00 250.00 8.00 canada OFFICE INVESTMENT CBD SALES PRICE (cad PSF) CBD CAP RATE SUBURBAN SALES PRICE (cad PSF) SUBURBAN CAP RATE Calgary, AB 335.00 6.63 330.00 7.38 Edmonton, AB 344.57 7.58 Halifax, NS 98.90 8.50 Kitchener-Waterloo, ON 160.00 8.00 110.00 7.75 Montreal, QC 275.00 7.25 175.00 8.00 Ottawa, ON 7.75 150.00 8.00 Regina, SK 140.00 8.00 Saskatoon, SK 175.00 8.20 Toronto, ON 379.04 6.60 230.00 8.00 Vancouver, BC 450.00 6.00 325.00 7.50 Victoria, BC 325.00 6.50 290.00 7.00 Office Markets Beginning to Show Signs of Bottoming Out Continued from page 1 percent) higher. This marked the eleventh consecutive quarterly increase, which left the overall vacancy rate at 16.34 percent at the end of the quarter and possibly marking a cyclical high. U.S. office vacancies are now back to levels last recorded during the first quarter of 2004. During Q2 the Downtown vacancy rate increased 14 basis points to register 15.01 percent while suburban vacancies decreased 3 basis points to total 16.94 percent. Canadian vacancy rates were mixed with central business district (CBD) vacancies rising 37 basis points to 7.10 percent while suburban vacancies decreased 7 basis points to 8.93 percent. Office tenants are back to leasing space, although barely enough to register. After nine consecutive quarters of negative absorption, the U.S. office market registered a slight increase in occupied space. Second quarter absorption came in at 2.7 MSF (million square feet). This was a significant improvement from a year ago, when 25.1 MSF was returned to the market, and up from the first quarter when occupied space contracted by 5.1 MSF. While it is becoming increasingly clear most companies have finished disposing of excess space, there is little evidence to suggest many will be expanding any time soon. Canadian markets also recorded an increase in occupied space during the quarter with absorption totaling 1.2 MSF. Office rents mixed, CBD up, suburban down. After almost two years of falling lease rates, CBD rents managed to eke out a small increase during the quarter, rising by 1.0%. Suburban rents, however, extended their downward path, falling by 1.3%. Downtown Class A lease rates finished the quarter at $38.53 per square foot while suburban asking rents registered $26.24 per square foot. Year-over-year CBD rents were down 6.4% while suburban rents were down 4.1%. Office rents in Canada moved higher during the quarter with CBD quoted rents increasing 2.6% and suburban rents up 1.6%. Office development resumed downward trend. Second quarter office completions totaled 11.1 MSF, a modest drop from the first quarter when construction totaled 13.4 MSF, and down from a year ago when 16.3 MSF was completed. Construction activity continued to decline with Q2 development under construction falling to just 29.2 MSF, compared with 31.2 MSF at the end of the quarter first quarter and well below the 120 MSF underway at midyear 2008. Construction is expected to dwindle as the year progresses and with the exception of just a few build-to-suits, new office development will be largely absent from the U.S. office landscape by year-end. Colliers International p. 7

highlights office north America 480 offices in 61 countries on 6 continents United States: 135 Canada: 39 Latin America: 17 Asia Pacific: 194 EMEA: 95 $1.9 billion in annual revenue 2.4 billion square feet under management Over 15,000 professionals COLLIERS INTERNATIONAL 601 Union Street, Suite 5300 Seattle, WA 98101 tel +1 206 223 0866 FAX +1 206 757 9427 FOR MORE INFORMATION Ross J. Moore Chief Economist USA tel +1 617 722 0221 EMAIL ross.moore@colliers.com Glossary Inventory Includes all existing multi- or single-tenant leased and owner-occupied office properties greater than or equal to 10,000 square feet (net rentable area). In some larger markets this minimum size threshold may vary up to 50,000 square feet. Does not include medical or government buildings. Vacancy Rate Percentage of total inventory physically vacant as at the survey date including direct vacant and sublease space. Absorption Net change in physically occupied space over a given period of time. New Supply Includes completed speculative and build-to-suit construction. New supply quoted on a net basis after any demolitions or conversions. Annual Quoted Rent Includes all costs associated with occupying a full floor in the mid-rise portion of a Class A building inclusive of taxes, insurance, maintenance, janitorial and utilities (electricity surcharges added where applicable). All office rents in this report are quoted on an annual, gross per square foot basis. Rent calculations do not include sublease space. Cap Rate (Or going-in cap rate) Capitalization rates in this survey are based on multi-tenant institutional grade buildings fully leased at market rents. Cap rates are calculated by dividing net operating income (NOI) by purchase price. Note: SF = Square Feet PSF = Per Square Foot CBD = Central Business District Copyright Colliers International. 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. Accelerating success. www.colliers.com