The Rise of the Sun Belt

OFFICE NORTH AMERICA HIGHLIGHTS The Rise of the Sun Belt ANDREA CROSS National Office Research Manager USA INDICATORS Relative to prior period US Q1 2014 US Q2 2014* Canada Q1 2014 NORTH AMERICAN OFFICE Summary Statistics, Canada Q2 2014* NET CONSTRUCTION RENTAL RATE** *Projected Construction is the change in Under Construction **Rental rates for current quarter are for CBD. Rent forecast is for metro-wide rents. US CAN NA 13.90 8.05 13.49 Change From Q4 2013 (%) -0.11 0.19-0.09 (MSF) 13.2 0.3 13.5 NEW CONSTRUCTION (MSF) 15.6 2.0 17.6 UNDER CONSTRUCTION (MSF) 70.8 21.3 92.1 ASKING RENTS PER SF US CAN Downtown Class A ($) 44.24 50.13 Change from Q4 2013 (%) 2.64-0.46 Suburban Class A ($) 27.17 32.24 KEY TAKEAWAYS North American office vacancy decreased by 9 basis points in to 13.49%, on par with the rate of recovery during the last few years. Steady job growth is driving demand, but tenants more efficient use of space is limiting occupancy gains relative to previous cycles. ICEE markets continue to lead office market recovery. Vacancy in the primary ICEE markets decreased by 26 bps this quarter, vs. just 4 bps in the primary FIRE markets. Sun Belt markets also are key drivers of the current recovery. Despite accounting for only about 30% of U.S. office inventory tracked by Colliers, the Sun Belt represented nearly 60% of Q1 office absorption. Construction activity in the U.S. remains low and is concentrated in markets with the strongest demand, e.g., Boston, San Francisco, Silicon Valley. Space under construction in U.S. and Canadian markets tracked by Colliers totaled 92.1 million square feet in, up from 88.2 million square feet in Q4 2013 and 74.4 million square feet in Q1 2013. Domestic and foreign capital continues to target North American office properties: According to Real Capital Analytics, combined transaction volume in the U.S. and Canada increased by 36% year-over-year in. Demand is still strongest for assets in CBDs and major metros, although we anticipate rising activity in suburban and secondary markets due to the broadening economic and office market recoveries, and higher yields on properties in those areas. Change from Q4 2013 (%) 1.18 1.00 WWW.COLLIERS.COM

HIGHLIGHTS OFFICE NORTH AMERICA OFFICE, INVENTORY AND NORTH AMERICA T SUN EL BE NB LT U S Absorption Per Market Q4 2013 - SU NBELT SUNBE LT SUNB ELT SUNBEL T SUNBELT SUN BELT SUNBELT 2,000,000 ELT SUNB NBELT SUNBELT SU 1,000,000 200,000-200,000-1,000,000-2,000,000 Square Feet By Region 2 billion 1 billion 200 mil. Occupied Sq. Ft. Vacant Sq. Ft. U.S. Economic Trends The U.S. economy began 2014 on a weak note, with severe weather conditions throughout much of the nation. The term Frozenomics was coined to describe the resulting negative economic impact. At the time, we believed the damage from Frozenomics was overblown and would be short-lived, and our prediction has been borne out by recent economic data. According to the Bureau of Labor Statistics (BLS), the U.S. economy added 288,000 jobs in April 2014, the highest monthly total since January 2012; also, job creation figures for February and March were revised upward by a total of 36,000. We regularly caution that BLS employment statistics are revised multiple times often substantially but, in this case, payroll processing firm ADP s recent data on actual payroll statistics from 20% of the nation s private-sector companies mirrors the BLS data. ADP reported steady acceleration in monthly job creation in early 2014, from 121,000 jobs added in January to 220,000 jobs added in April, with the four major geographical regions all exceeding their respective six-month trailing monthly averages. Looking specifically at office-using employment, the bifurcated recovery continues, with strong growth in professional and business services propelling nearly all of the growth in office demand during the current recovery. Moreover, professional and business services growth accelerated through early 2014, with 77,000 jobs created in April the highest total since late 2012, according to ADP data. Technology-related employment was the primary driver of this growth earlier in the cycle, but other comp. 2 COLLIERS INTERNATIONAL EMPLOYMENT FROM CYCLICAL PEAK US 6% 4% 2% 0% -2% -4% -6% -8% -10% 0 4 8 12 16 20 24 28 32 36 40 44 48 52 56 60 64 68 72 76 80 84 88 MONTHS Total Employment Office-Using Employment Professional & Business Services Financial Activities Latest data as of April 2014; x-axis indicates number of months elapsed since each sector s previous cyclical employment peak; office-using employment sectors include professional and business services, financial activities and information services; information services not displayed separately because sector peaked in 2001 Sources: Bureau of Labor Statistics, Colliers International ponents of this sector, such as legal and accounting, have been adding jobs during the last 12 months, albeit at a modest pace. Recent data from Thomson Reuters indicated an increase in law firm transaction activity among 70% of the 150 large firms surveyed in, compared with just 32% one year earlier a positive sign for this important component of office demand. Financial activities, the other primary component of

HIGHLIGHTS OFFICE NORTH AMERICA OFFICE Q1 2012 US 25.0 14.95 14.78 14.73 14.63 14.49 14.45 14.15 14.00 13.90 16.0 economic growth in Canada. The Conference Board expects improved private investment activity in 2014, but relatively low when compared with historical levels. 20.0 15.0 10.0 5.0 0.0 - Q1 2012 Q2 Q3 Q4 Q1 2013 Q2 Q3 Q4 Source: Colliers International Absorption MSF Completions MSF Vac Rate (%) office-using employment, remains weak, although the sector does appear to have bottomed. Other than a decrease in January, the financial activities sector has not lost jobs on a monthly basis in more than three years, according to ADP. In 2014, we expect the U.S. economic recovery to occur at a similar rate as in 2013, with steady but unspectacular job creation averaging less than 200,000 per month. However, the economy should gain steam as the year progresses compared with the Frozenomics-driven weakness at the beginning of the year. Given the second estimate of a 1.0% decline in GDP in, we expect GDP growth of less than 2.0% during 1H 2014. However, growth should accelerate during the year, supported by greater business and consumer confidence, the carry-forward effect of purchases delayed due to weather conditions earlier in the year, and incremental improvements in state and local government finances. Thus, we expect healthy 3.0% GDP growth in 2H 2014, resulting in annual GDP growth in the 2.5% 2.75% range. Canada Economic Trends Like the U.S., Canada was not immune to the bad weather effect in Q1 2014. GDP expanded by 1.7%, well ahead of the U.S. rate, but still a slowdown from 2.9% in Q4 2013. Similar to the U.S., we expect stronger GDP growth through the rest of 2014 as the temporary negative effect of the weather dissipates. For the year, the Canadian economy will likely mirror the trend of the last few years, expanding at a modest rate. The Conference Board of Canada projects 2.3% GDP growth, a slight increase from 1.7% in 2013 and lower than our expectations for U.S. economic growth. However, it is important to note that the Canadian economy experienced a shallower and shorter recession than the U.S., and several years ago recovered all of the jobs lost during the downturn. Canada is in the midst of a moderate expansionary period rather than the protracted recovery occurring in the U.S. For 2014, the withdrawal of fiscal stimulus measures implemented in response to the recession, coupled with a cautious outlook among private sector firms, will likely prevent faster 14.0 12.0 10.0 8.0 6.0 4.0 2.0 Vacancy % Office Outlook 2014: Behind the Statistics & Beyond the Basics Scope of Colliers Office Outlook Report: Colliers office space universe encompasses 87 markets in the U.S. and Canada, totaling more than 6.4 billion square feet. The 75 U.S. markets account for nearly 6.0 billion square feet of tracked inventory, with the remaining 446 million square feet in Canada. Our coverage includes 21 markets with more than 100 million square feet of space, which combined account for 3.8 billion square feet, or nearly 60% of our office market inventory. The largest U.S. markets are New York, Washington, D.C., Chicago, Dallas and Atlanta; Toronto is the only Canadian market with more than 100 million square feet of space. Vacancy rate trends in mirrored those observed during the last few years. The slow but steady economic recovery, coupled with low levels of new supply, supported an 11 basis-point decrease in the U.S. vacancy rate, to 13.9%. Once again, the Canadian vacancy rate increased during the quarter as additional new supply came to market. Although Canada s vacancy rate rose above 8%, it remains well below the 10% threshold reflective of a healthy market. Intellectual capital, energy and education (ICEE) markets remain the leaders in the office market recovery. The vacancy rate in the primary ICEE markets decreased by 26 basis points during the quarter, compared with just a 4 basis-point decrease in the vacancy rate of the primary FIRE markets. ICEE markets still top the list of tightest markets, including Bakersfield, Pittsburgh, Calgary and San Francisco. However, many markets without significant clusters of ICEE industries are improving as well, mirroring the broader economic recovery. Grand Rapids, Hartford and Downtown Manhattan were among the markets with the largest decrease in vacancy rate. Albuquerque, a laggard in the current recovery due in part to its dependence on federal government spending, also ranked high in terms of quarterly vacancy rate decrease, as did former housing-bust markets Fresno and Stockton. We are also observing an increasing amount of tenant spillover from the leading tech markets and submarkets, in which rents have increased significantly in recent years, to adjacent, lower-cost areas with greater availabilities. Northern California s East Bay is finally experiencing some tenant spillover from Silicon Valley and San Francisco, where rents have skyrocketed and the number of large blocks of available space has diminished. Several tenants in the health care, non-profit and gourmet food sectors left San Francisco recently for the lower rents and/or larger spaces available in the East Bay; and both Oakland and Walnut Creek COLLIERS INTERNATIONAL P. 3

HIGHLIGHTS OFFICE NORTH AMERICA posted vacancy rate decreases in. In Chicago, mobile marketing firm Punchkick Interactive will relocate from River North, one of the metro area s leading tech submarkets, to the nearby East Loop later this year. With technology tenants driving up rents in the hottest tech markets, we will likely see more tenant spillover into other submarkets by both tech and non-tech tenants. LARGEST Q-o-Q DECREASE IN OVERALL RATE NA MSA Q4 2013 BASIS- POINT CHANGE Grand Rapids, MI 18.36 20.72-236 Hartford, CT 12.82 14.49-167 San Jose Silicon Valley 10.81 12.44-163 New York, NY Downtown Manhattan 14.43 15.55-112 Ottawa, ON 9.70 10.73-103 New York, NY Midtown South Manhattan 8.83 9.74-91 Albuquerque, NM 18.42 19.28-86 Fresno, CA 12.74 13.50-76 Walnut Creek, CA 15.57 16.23-65 Atlanta, GA 16.07 16.67-59 NORTH AMERICA 13.49% 13.58% -9 Source: Colliers International LOWEST OVERALL RATES NA (%) (%) Toronto, ON 5.92 Winnipeg, MB 8.46 Saskatoon, SK 6.22 Vancouver, BC 8.68 Montréal, QC 7.24 Calgary, AB 8.71 Bakersfield, CA 7.29 New York, NY Midtown South 8.83 Pittsburgh, PA 8.09 Nashville, TN 9.15 Source: Colliers International NORTH AMERICA: 13.49% neighborhoods that historically were less desirable than core, central city locations like San Francisco and Manhattan. Etsy, Inc. is expanding its Brooklyn presence, moving its headquarters into 200,000 square feet in the DUMBO neighborhood, and has plans to nearly double the size of its workforce. Vibrant, walkable areas proximate to transit, in core markets as well as in emerging neighborhoods and office markets, will benefit from these trends. With modest economic growth still occurring in Canada, the increase in the vacancy rate in recent quarters was primarily the result of more efficient space utilization by tenants, as well as the large amount of new supply coming to market. The demand drivers vary by metro area, but as in the U.S. ICEE firms continue to boost demand for space in core markets. In Calgary, for example, where nearly 70% of office construction in Canada was delivered in, demand from energy companies seeking large blocks of space remains robust even though the vacancy rate increased slightly during the quarter. In Vancouver, digital media and technology firms remain active, as well as firms entering the Vancouver market for the first time. Microsoft and Sony recently signed large deals for high-quality space in downtown Vancouver. Overall, demand has stagnated somewhat, but this is primarily due to tenants delaying leasing decisions until the large amount of supply under construction starts to hit the market. Some concern remains regarding the impact of this new space on vacancy in Class B buildings and older Class A buildings. Although a broader range of industries have been adding jobs in recent quarters, the ICEE industries remain the dominant force in the office market. Absorption in the main ICEE markets outpaced absorption in the major FIRE markets by more than four to one in. Houston alone accounted for more than one-quarter of the 8.6 million square feet of absorption in the ICEE markets, posting its highest quarterly absorption total since Q2 2007. Energy companies continue to drive the Houston market, accounting for nearly 80% of leasing activity in, as high oil prices support the industry s growth. TOP S FOR METRO OFFICE NA 2.5 MSF 2.0 1.5 1.0 0.5 0.0 Also expected to drive the spillover trend is the increased desirability of residential neighborhoods in areas such as Oakland and Brooklyn. Many companies are seeking to locate near where their employees want to live, and many millennials have been priced out of, or prefer to live in, Houston, TX New York, NY - Midtown South Boston, MA Dallas, TX Atlanta, GA New York, NY - Downtown Baltimore, MD Phoenix, AZ Minneapolis, MN New Jersey - Central Source: Colliers International P. 4 COLLIERS INTERNATIONAL

HIGHLIGHTS OFFICE NORTH AMERICA As the recovery progresses, shortages of space are emerging in certain submarkets, or for some sizes or classes of space in metro areas that have been slow to recover overall. For example, in Sacramento, which still has an 18+ percent vacancy rate, tenants leased half of the blocks of space containing 100,000 square feet or more between mid-2013 and the end of, leaving few contiguous options for large users. However, options for smaller and mid-sized users remain abundant. Although the economy continues to improve, many companies remain highly cost-conscious, as reflected in their real estate decisions. We continue to see large companies dividing functions into multiple geographical locations in order to reduce operating expenses, affecting office market dynamics across the United States. Within the financial services industry, many major banks have been moving mid-level and back-office functions to lower-cost locations in the South and Midwest. As of April 2014, financial activities employment exceeded pre-recession peak levels in many metro areas within these regions, even in hard-hit housing markets such as Jacksonville, due to financial companies including Deutsche Bank, Goldman Sachs, Credit Suisse and BNY Mellon expanding operations. We are seeing a similar trend in non-financial industries as well. For example, GE recently announced plans to consolidate 1,400 employees, including human resources, IT, accounting and procurement professionals, into a new Global Operations Center in the Cincinnati area by 2017. Many of the employees will come from outside of Cincinnati, and the facility eventually could house up to 2,000 employees in total, resulting in substantial net job creation in the area from just this company. In KPMG s most recent Competitive Alternatives study, Cincinnati ranked second among large metro areas in terms of business costs, and indeed we are seeing strong job creation in many of the markets at the top of these rankings. We expect that low costs of doing business, coupled with aggressive company recruitment through tax and other incentives by states such as Texas, will result in continued tenant movement from higher-cost metros. North American Downtown Markets: Excluding renewals, of the leases signed this quarter in your CBD/downtown, did most tenants...? Expand 11.69% Contract 11.69% Hold Steady 70.13% North American Downtown Markets: What was the trend in Free Rent (in months) offered by CBD landlords this quarter? Less 13.04% More 5.80% Same 81.16% Consolidations and reconfigurations of space throughout the public and private sectors continue to limit office absorption. The General Services Administration (GSA) remains among the most aggressive in terms of downsizing, exemplified by its April renewal for 217,313 square feet in College Park, GA, for the Federal Aviation Administration s Southern Regional Office. The GSA plans to relocate an additional 330 employees from another space at which its lease is expiring, bringing the College Park location s headcount from less than 700 to about 1,000. With a federal budget in place, the GSA is beginning to deal with the backlog of expiring leases that built up during the last few years; one-quarter of all federal leases are set to expire in 2014. However, the agency will continue to utilize denser configurations and reduce its real estate footprint in order to cut real estate costs. Efficient buildings capable of handling high employee densities are in demand, potentially at the expense of incumbent buildings. The federal government is also looking to better utilize its real estate portfolio, moving some employees out of leased space into owned space. For example, the Department of Veterans Affairs recently announced plans to move 800 employees out of leased space in downtown St. Louis into a GSA-owned building in suburban Overland, MO. Private-sector firms are attempting to cut costs as well, through more efficient space utilization although the potential for this varies by industry and the individual tenant s needs. Firms are using technology to monitor desk utilization rates, with some reporting less than 50% of workspaces used during business hours, indicating significant potential for increasing densities through the use of shared spaces. Many firms are reporting a desire for shorter, more flexible lease terms in order to respond to ever-changing technologies and uncertain business conditions. North American Downtown Markets: What was the trend for tenant improvement allowances offered by CBD landlords this quarter? Less 11.59% More 7.25% Same 81.16% North American Suburban Markets: Excluding renewals, of the leases signed this quarter in your suburban market, did most tenants...? CONSTRUCTION ACTIVITY Construction trends reflect where the U.S. and Canada are respectively in the office market cycle. Outside of the strongest metro areas and submarkets, construction activity remains low in the U.S. due to more efficient tenant space usage, elevated vacancy rates and high construction costs. Canada s economic expansion, on the other hand, is driving a large amount of construction activity, and new supply is just starting to hit the market in many metros. Contract 8.22% Expand 26.03% Hold Steady 65.75% Charts above reflect % of markets reporting COLLIERS INTERNATIONAL P. 5

HIGHLIGHTS OFFICE NORTH AMERICA TOP S FOR OFFICE SPACE UNDER CONSTRUCTION NA CONSTRUCTION AS % OF INVENTORY NA 16 MSF 14 MSA SQUARE FEET UNDERWAY % OF INVENTORY 12 10 8 6 4 2 0 Houston, TX Toronto, ON Calgary, AB Washington, DC San Francisco, CA Dallas, TX Vancouver, BC New York, NY - Midtown South Boston, MA Seattle/Puget Sound, WA Calgary, AB 6,678,741 10.08 Vancouver, BC 4,140,952 7.68 Houston, TX 15,052,344 7.17 San Francisco, CA 5,381,410 6.06 Halifax, NS 647,446 5.78 Toronto, ON 6,799,062 4.83 Regina, SK 200,000 4.53 Edmonton, AB 886,748 4.28 San Jose/Silicon Valley, CA 2,305,928 3.18 Seattle/Puget Sound, WA 3,436,907 3.06 NORTH AMERICA 92,063,015 1.43% NOTE: Rankings are based on the 87 U.S. and Canadian markets tracked by Colliers International Source: Colliers International NOTE: Rankings are based on the 87 U.S. and Canadian markets tracked by Colliers International Source: Colliers International Although still low, development activity has been increasing, albeit slowly. Square footage under construction in the U.S. and Canadian markets tracked by Colliers totaled 92.1 million square feet in, up from 88.2 million square feet in Q4 2013 and 74.4 million square feet in Q1 2013. Driven by voracious demand from energy companies, Houston continues to lead the U.S. both in terms of square footage underway (1 5.1 MSF) and square footage underway as a percentage of existing inventory (7.2%). Most of the other top U.S. markets for construction activity are tech-driven, such as San Francisco, San Jose, Boston and Seattle. Like the energy industry, tech tenant demand remains robust, with large tenants pre-leasing significant amounts of space or entire buildings, prompting additional construction. Several of the largest deals in the San Francisco office market s history were signed in buildings under construction in recent months, including Salesforce.com s lease for more than half of the 1.4 million square feet of the tower anchoring the Transbay development (now called the Salesforce Tower), and LinkedIn s lease of the entire 26-floor, 450,000-square-foot tower under construction at 222 Second Street. Toronto, Calgary and Vancouver are the most active development markets in Canada, accounting for about 83% of office construction underway nationwide. In Calgary, total square footage under development accounted for more than 10% of existing inventory as of, the highest share of any U.S. or Canadian market. Like Houston, developers have responded to robust growth among Calgary energy firms, a trend that continued in with expansions by a number of companies including Athabasca Oil Corp., Progress Energy, TransCanada Pipelines and Total Energy Services. Higher anticipated natural gas prices and optimism regarding liquefied natural gas (LNG) projects and pipeline capacity are fueling construction activity and tenant demand. The measured supply response, particularly in the U.S., should contribute to a continued moderate office market recovery. Given high construction costs and only moderate increases in tenant demand in most markets, we expect development activity to remain low and targeted, with speculative development focused on the strongest metro areas (e.g., San Francisco, Boston) as well as the strongest submarkets within lagging metro areas (e.g., West Los Angeles, Chandler, AZ). The Rise of the Sun Belt Looking at both economic and office market indicators, the resurgence of the Sun Belt is evident. The region s states and metropolitan areas possess unique characteristics, such as the robust energy sector in Texas, strong technology clusters in Austin and North Carolina s Research Triangle, and the expanding health care industry in Nashville. However, a common thread running through most of the region is a low cost of doing business that is proving attractive to expanding or relocating companies in a range of industries. LOWEST-COST CITIES WITH POPULATION > 2 MILLION U.S. & CANADA CANADA COST INDEX Montréal 92.0 Toronto 93.6 Vancouver 94.6 UNITED STATES COST INDEX Atlanta 94.7 Cincinnati 94.9 Orlando 95.1 Charlotte 95.2 San Antonio 95.6 Tampa 95.8 Cleveland 96.3 U.S. BASELINE 100.0 Source: 2014 KPMG Competitive Alternatives P. 6 COLLIERS INTERNATIONAL

HIGHLIGHTS OFFICE NORTH AMERICA LOWEST-COST CITIES WITH POPULATION 1-2 MILLION US & CANADA CANADA COST INDEX Edmonton 94.0 UNITED STATES COST INDEX New Orleans 94.1 Nashville 94.9 Oklahoma City 95.1 Raleigh 95.6 Memphis 95.8 Indianapolis 96.2 Salt Lake City 96.6 Austin 96.8 Buffalo 96.9 U.S. BASELINE 100.0 Source: 2014 KPMG Competitive Alternatives Examining office-using employment trends from multiple angles, Sun Belt markets rank high. As noted in previous reports, ICEE markets Austin, Raleigh, Houston and Dallas-Fort Worth, as well as health care center Nashville, all rank among the top ten U.S. markets in terms of the percentage of office-using jobs recovered. In fact, all of these markets have recovered more than twice the number of office-using jobs that they lost during the recession. However, looking at markets with the strongest year-over-year office-using job growth in April 2014, the list has broadened beyond the leading markets to include many previously lagging metropolitan areas. Among the top 20 markets for office-using job growth in April are 12 Sun Belt metros, including hard-hit Florida markets Cape Coral-Fort Myers, Jacksonville, Orlando, Tampa and West Palm Beach. Office-using job growth is coming from a range of industries including financial services, with many firms moving operations to or expanding in lower-cost markets such as Jacksonville and Tampa. Charlotte also is in the midst of a remarkable recovery: Its urban yet affordable lifestyle appeals to millennial graduates of Southeastern universities, providing an attractive talent base to companies in a variety of industries. The strength in the Sun Belt s job market is spreading to the office market. Despite accounting for only 30% of U.S. office inventory tracked by Colliers, the Sun Belt markets represented nearly 60% of office absorption during. Houston alone accounted for more than 17% of U.S. absorption during the quarter, with continued robust growth in the energy TOP 20 S FOR OFFICE-USING JOBS RECOVERED SINCE RECESSION APRIL 2014 US MSA PERCENT RECOVERED MSA PERCENT RECOVERED Austin 472.5 Omaha 185.2 Fayetteville, AR 342.9 Grand Rapids 179.6 Raleigh 320.6 Trenton, NJ 176.2 Nashville 317.2 Indianapolis 173.9 Madison, WI 307.9 Columbus 162.8 Pittsburgh 256.6 Harrisburg 162.2 San Francisco 256.3 Baltimore 160.4 San Jose/Silicon Valley 229.2 Holland, MI 160.0 Houston 207.1 Denver 158.4 Dallas-Fort Worth 205.1 Greenville, SC 149.1 UNITED STATES: 112.7% NOTE: Includes markets tracked by Colliers International; all data are seasonally adjusted as of April 2014. Sources: Bureau of Labor Statistics, Federal Reserve Bank of St. Louis, Colliers International FASTEST OFFICE-USING EMPLOYMENT GROWTH APRIL 2013-2014 US MSA PERCENT CHANGE MSA PERCENT CHANGE Reno 9.8 Orlando 4.5 Cape Coral-Fort Myers 8.9 San Jose/Silicon Valley 4.5 Raleigh 8.7 West Palm Beach 4.4 Savannah 7.4 Dallas-Fort Worth 4.0 Nashville 7.0 Harrisburg 3.9 Fresno 6.8 San Francisco 3.8 Austin 6.4 Greenville, SC 3.7 Holland, MI 6.1 Tampa-St. Petersburg 3.6 Jacksonville 4.9 Portsmouth 3.4 Indianapolis 4.9 Charlotte 3.4 UNITED STATES: 2.4% NOTE: Includes markets tracked by Colliers International; all data are seasonally adjusted as of April 2014. Sources: Bureau of Labor Statistics, Federal Reserve Bank of St. Louis, Colliers International S WITH FINANCIAL ACTIVITIES EMPLOYMENT AT OR ABOVE PRE-RECESSION PEAK APRIL 2014 US MSA % OF RECOVERED RECOVERED JOBS MSA % OF JOBS Ann Arbor 800.0 Pittsburgh 231.8 Midland, TX 400.0 Richmond 160.9 St. Louis 385.2 Trenton 137.5 Lincoln, NE 375.0 Phoenix 136.6 Nashville 355.6 Holland, MI 133.3 Dallas-Fort Worth 308.4 Grand Rapids, MI 122.7 Omaha 277.8 Jacksonville 106.6 Austin 234.5 UNITED STATES: 33.5% NOTE: Includes markets tracked by Colliers International; all data are seasonally adjusted as of April 2014. Sources: Bureau of Labor Statistics, Federal Reserve Bank of St. Louis, Colliers International P. 7 COLLIERS INTERNATIONAL

HIGHLIGHTS OFFICE NORTH AMERICA sector. Corporate relocations to the Dallas-Fort Worth region continue at a brisk pace, highlighted this quarter by Toyota s announcement that it will move its long-time headquarters from Torrance, CA, to Plano. Toyota has already leased 120,000 square feet of space in the region to house workers during construction of its new one-million-square-foot campus. The Toyota deal underscores the success that Texas, in particular and the Sun Belt generally has had in attracting companies and its impact on the office market. In another example of this trend, Prince Global Sports recently announced that it will move its headquarters from New Jersey to Atlanta s Buckhead submarket. The Sun Belt s strength is unlikely to abate anytime soon, as increasingly cost-conscious firms look for low-cost locations for expansion and relocation. ICEE hubs like Austin and Raleigh-Durham will benefit from knowledge industry growth. The Sun Belt also will benefit from the trend of firms dividing functions across regions, with companies moving midlevel and back-office functions to lower-cost areas. Finally, although the Sun Belt has a more suburban profile compared with denser Northeast and West Coast metros, many Sun Belt markets are investing in public transit and mixed-use, walkable developments, which are particularly popular among millennials. Examples include: Raleigh-Durham Research Triangle Park (RTP): RTP recently acquired 100 additional acres of adjacent land for the development of up to three million square feet of higher-density development in this suburban tech park in the Raleigh-Durham metro area, the first mixed-use space at the 55-year-old park; Dallas-Fort Worth City Line: The location of State Farm s new two-million-square-foot regional center in Richardson, TX, this $1.5 billion mixed-use project under development by KDC also will contain two hotels, nearly 4,000 apartments, 300,000 square feet of retail and entertainment space, three parks, pedestrian walkways, and open space for concerts and other public gatherings; Atlanta Ponce City Market: This high-profile renovation of the Sears, Roebuck & Company building near Midtown and adjacent to the Atlanta BeltLine will feature 475,000 of Class A, loft office space, 330,000 square feet of retail and restaurants, and 259 residential units in a walkable, creative environment reminiscent of denser tech hubs such as San Francisco; Orlando SunRail and Bike Share: Several development and transit projects more typical of denser urban areas are opening in Orlando. On the heels of the May 2014 opening of SunRail, the region s new commuter rail system, SunCycles will begin offering rentable bicycles throughout Orlando, including near SunRail stations. Also, several transit-adjacent co-working facilities are in the works. These types of mixed-use developments are well suited to the preferences of the millennials, who represent an increasing share of the U.S. workforce as they enter the labor force and the baby boomers retire. The millennial cohort could exceed 50% of the workforce by 2020 and reach 75% of the workforce by 2025. As more millennials start families in the coming years, many Sun Belt markets will be well-positioned to offer a variety of living and working environments, including affordable singlefamily housing as well as the types of walkable, mixed-use developments for which this cohort has demonstrated a preference. Capital Markets & Transaction Activity The office investment market remained active through, particularly in CBD markets and major metro areas. Capital from both domestic and international sources for investment in U.S. real estate remains plentiful, supporting price increases and transaction volume gains. According to Real Capital Analytics (RCA), total transaction volume in the U.S. and Canada increased by 36% year-over-year in, and 12-month trailing investment volume increased by 30%, reaching $114.9 billion, the highest total since Q2 2008. Although investor interest is spreading beyond gateway cities and CBDs in search of higher yields, demand remains robust in core markets. In the U.S., CBDs posted a much larger gain in year-over-year transaction volume (60%) compared with suburban markets (10%), and investment volume increased the most in major metros, followed by secondary and tertiary markets, respectively. Likewise, cap rate compression was greatest in CBD markets and major metros. OFFICE TRANSACTION VOLUME NA Bil. 300 250 200 150 100 50 0 2007 2008 2009 2010 2011 2012 2013 2014 12-Month Trailing Volume (left-axis) 200% 150% 100% 50% 0% -50% Year-Over-Year % Change (right-axis) -100% NOTE: Latest data as of ; all data are 12-month trailing. Source: Real Capital Analytics Nonetheless, investors are responding to broader improvement in job growth and office absorption by moving into secondary submarkets and metropolitan areas, a trend that we expect to continue with the ongoing recovery. Also, investors are anticipating future demand growth in submarkets proximate to core tech submarkets. For example, despite having an elevated vacancy rate, the El Segundo submarket in Los Angeles s South Bay has attracted much investor attention in anticipation of greater tenant spillover demand from tech-driven, high-rent West Los Angeles, similar to what occurred during the last business cycle. DivcoWest, Griffin Capital and Montana Avenue Capital, among others, purchased El Segundo office properties in early 2014, and many investors continue to circle the market for acquisition and redevelopment opportunities. Given expected increases in interest rates, coupled with broadening economic and office market improvements, we anticipate secondary and tertiary markets, suburban markets and spillover ICEE submarkets to benefit from growing investor demand. P. 8 COLLIERS INTERNATIONAL

HIGHLIGHTS OFFICE NORTH AMERICA UNITED STATES DOWNTOWN OFFICE ALL INVENTORY INVENTORY NEW SUPPLY UNDER CONSTRUCTION NORTHEAST Baltimore, MD 28,919,710 0 45,000 12.81-315,134 Boston, MA 62,623,701 1,050,000 1,895,940 12.02 825,333 Hartford, CT 9,971,800 0 0 12.53 112,094 New York, NY Downtown Manhattan 110,938,458 2,861,402 2,800,000 14.43 1,246,463 New York, NY Midtown Manhattan 230,068,701 0 0 11.78-1,270,068 New York, NY Midtown South Manhattan 162,245,367 894,672 3,600,000 8.83 1,468,753 Philadelphia, PA 42,994,756 0 0 11.05 189,330 Pittsburgh, PA* 32,099,033 0 800,000 10.51-100,993 Stamford, CT 18,708,865 0 0 20.74 152,473 Washington, DC 144,299,812 575,941 1,673,266 10.40 202,047 White Plains, NY 7,687,431 0 0 14.78-16,011 Northeast Total 850,557,634 5,382,015 10,814,206 11.53 2,494,287 SOUTH Atlanta, GA 50,122,707 0 487,034 16.21 277,375 Birmingham, AL 4,985,532 0 0 20.43 453,256 Charleston, SC 2,252,548 0 21,000 9.41-5,279 Charlotte, NC 22,451,530 0 0 9.39 5,291 Columbia, SC 4,678,427 0 0 12.11-50,399 Dallas, TX 33,948,045 0 450,000 26.33 112,274 Ft. Lauderdale-Broward, FL 8,130,042 0 0 12.81 60,392 Ft. Worth, TX 10,147,172 0 75,971 15.77 136,152 Greenville, SC 3,293,679 0 85,000 17.87-9,299 Houston, TX 42,998,330 0 1,050,000 12.39 3,959 Jacksonville, FL 15,572,544 0 0 13.24 14,964 Little Rock, AR 6,477,052 0 0 10.79-6,365 Louisville, KY 43,267,691 299,483 0 10.94 298,773 Memphis, TN 5,954,989 0 0 18.69 32,512 Miami-Dade, FL 18,575,117 0 128,580 17.31 26,614 Nashville, TN 13,176,826 0 0 12.74-18,282 Orlando, FL 12,174,413 0 0 12.60-52,169 Raleigh/Durham/Chapel Hill, NC 14,368,557 388,279 242,969 6.01 262,929 Richmond, VA 16,718,420 106,662 321,500 10.52 88,034 Savannah, GA 803,516 0 0 14.06-1,236 Tampa Bay, FL 6,779,680 0 0 15.13 18,479 West Palm Beach/Palm Beach County, FL 9,916,338 0 0 15.43-1,644 South Total 346,793,155 794,424 2,862,054 14.38 1,646,331 *Long Island, Pittsburgh and Portland data is from Q4 2013. **Detroit data is from Q3 2013. COLLIERS INTERNATIONAL P. 9

HIGHLIGHTS OFFICE NORTH AMERICA UNITED STATES DOWNTOWN OFFICE ALL INVENTORY (continued) INVENTORY NEW SUPPLY UNDER CONSTRUCTION MIDWEST Chicago, IL 158,505,062 0 1,067,400 12.81-174,544 Cincinnati, OH 18,989,060 0 0 15.13-18,029 Cleveland, OH 38,028,983 0 0 16.91-6,541 Columbus, OH 19,452,521 0 490,000 10.96 54,366 Detroit, MI** 25,827,606 0 0 18.38 86,293 Grand Rapids, MI 5,454,500 0 0 17.43 22,655 Indianapolis, IN 22,548,402 0 0 9.49-67,488 Kansas City, MO 34,862,105 0 0 14.16 91,465 Milwaukee, WI 19,053,201 0 73,100 12.02 148,454 Minneapolis, MN 31,700,971 0 0 13.44-154,085 Omaha, NE 6,450,653 0 0 7.17-21,322 St. Louis, MO 23,216,158 0 0 20.37-526,476 St. Paul, MN 11,730,218 0 0 14.08-76,515 Midwest Total 415,819,440 0 1,630,500 13.93-641,767 WEST Albuquerque, NM 3,191,080 0 0 27.73 17,305 Bakersfield, CA 3,230,466 0 72,233 8.72-8,212 Boise, ID 4,177,362 252,347 234,687 8.30 6,452 Denver, CO 34,236,601 0 963,676 11.91 101,481 Fresno, CA 3,288,944 0 0 10.83-42,447 Honolulu, HI 7,164,686 0 0 14.36-49,832 Las Vegas, NV 4,907,615 49,200 129,000 12.15 98,220 Los Angeles, CA 32,566,100 0 508,200 20.14-137,400 Oakland, CA 17,255,313 363,800 0 11.49 11,114 Phoenix, AZ 20,351,253 155,000 0 21.73 95,678 Portland, OR* 35,076,079 0 343,000 9.59-61,426 Reno, NV 3,294,386 0 0 15.14-23,604 Sacramento, CA 13,570,765 0 0 15.49 49,426 San Diego, CA 10,172,525 0 320,000 19.36-99,066 San Francisco, CA 88,787,552 768,412 5,381,410 9.45 345,638 San Jose/Silicon Valley, CA 8,058,857 0 0 18.16 33,217 Seattle/Puget Sound, WA 55,560,625 36,600 3,246,507 11.10 243,554 Stockton, CA 8,221,819 0 0 15.87 25,078 Walnut Creek, CA 12,462,061 0 0 15.26 75,749 West Total 365,574,089 1,625,359 11,198,713 13.05 680,925 U.S. TOTAL/AVERAGE 1,978,744,318 7,801,798 26,505,473 12.81 4,179,776 *Long Island, Pittsburgh and Portland data is from Q4 2013. **Detroit data is from Q3 2013. P. 10 COLLIERS INTERNATIONAL

HIGHLIGHTS OFFICE NORTH AMERICA UNITED STATES DOWNTOWN OFFICE CLASS A INVENTORY QUOTED RENT (USD PSF) QUARTERLY RENT (%) RENT(%) NORTHEAST Baltimore, MD 12,805,993 22.50 209,387 4.7-6.5 Boston, MA 42,973,537 50.15 739,540 1.2 7.2 Hartford, CT 6,771,455 22.58 73,998 16.2-0.9 New York, NY Downtown Manhattan 80,463,304 52.40 981,727 1.5 11.4 New York, NY Midtown Manhattan 197,217,338 75.02-1,128,557 5.3 12.8 New York, NY Midtown South Manhattan 34,311,898 65.88 987,468 2.1 10.7 Philadelphia, PA 30,481,277 27.50 150,186 1.7 2.2 Pittsburgh, PA* 18,513,625 25.07-119,853 5.3 6.6 Stamford, CT 13,339,184 38.10 65,472-0.5-0.5 Washington, DC 89,201,106 52.89 455,534 0.1-2.6 White Plains, NY 4,887,012 31.62-17,147-1.5 0.0 Northeast Total 530,965,729 57.54 2,397,755 3.2 8.3 SOUTH Atlanta, GA 30,396,533 21.66 206,701-1.3-5.0 Birmingham, AL 4,029,421 21.06 459,144 0.5 0.0 Charleston, SC 1,009,994 33.28 299-1.5 4.0 Charlotte, NC 15,949,770 25.18 32,240 0.0 1.1 Columbia, SC 2,131,068 20.60-51,906-0.7 1.6 Dallas, TX 22,659,842 22.80 73,899-1.3 5.3 Ft. Lauderdale-Broward, FL 4,494,426 33.00 33,142 3.0 4.5 Ft. Worth, TX 5,830,792 28.90 15,930-1.0 0.3 Greenville, SC 2,021,715 20.88 6,333 2.8 5.7 Houston, TX 30,046,293 38.80-37,190 1.1 4.5 Jacksonville, FL 6,846,824 19.93-214,872 0.5 1.9 Little Rock, AR 2,635,440 16.57 3,874 0.0 1.6 Louisville, KY 10,579,669 19.75 250,378-2.0-1.8 Memphis, TN 2,009,825 17.10 10,800-2.6-1.1 Miami-Dade, FL 9,758,448 39.76 42,669-1.2-0.8 Nashville, TN 4,058,652 23.40 258 1.8 8.4 Orlando, FL 5,776,557 25.16-47,611 2.4 3.7 Raleigh/Durham/Chapel Hill, NC 7,008,939 24.89 17,517 3.7 3.7 Richmond, VA 6,355,704 24.83 8,638 0.6 4.7 Savannah, GA 645,713 20.91-3,478 2.0 1.6 Tampa Bay, FL 4,999,570 23.79 12,183 2.1 4.3 West Palm Beach/Palm Beach County, FL 3,211,645 36.07 10,751 3.3 2.8 South Total 182,456,840 26.83 829,699 0.1 1.6 *Long Island, Pittsburgh and Portland data is from Q4 2013. **Detroit data is from Q3 2013. COLLIERS INTERNATIONAL P. 11

HIGHLIGHTS OFFICE NORTH AMERICA UNITED STATES DOWNTOWN OFFICE CLASS A (continued) INVENTORY QUOTED RENT (USD PSF) QUARTERLY RENT (%) RENT(%) MIDWEST Chicago, IL 61,063,550 37.78-189,234 0.0 1.2 Cincinnati, OH 8,359,432 22.37 35,095 0.6 2.9 Cleveland, OH 10,828,360 21.24-15,792 2.5-2.7 Columbus, OH 8,377,149 19.80 43,970 0.7 2.8 Detroit, MI** 8,175,021 22.74 8,333-0.9-0.3 Grand Rapids, MI 1,463,659 18.90 17,645-0.6-2.3 Indianapolis, IN 9,501,787 18.95-52,668 0.0 0.1 Kansas City, MO 10,514,030 18.93-8,332 0.4 0.1 Milwaukee, WI 5,106,083 19.71 5,931-2.7-3.2 Minneapolis, MN 13,618,828 16.73-153,161 0.7-0.6 Omaha, NE 3,549,103 20.25 28,055 0.0 0.6 St. Louis, MO 9,558,798 18.09-536,227 0.4-0.2 St. Paul, MN 2,773,960 14.45-82,402 0.7 8.2 Midwest Total 152,889,760 26.79-898,787 0.4 0.8 WEST Albuquerque, NM 575,047 20.14 0 1.5 1.9 Bakersfield, CA 729,040 17.40-11,506 0.0 0.0 Boise, ID 1,895,059 19.22 37,890-0.8-1.1 Denver, CO 21,306,446 32.24 82,683 0.4 4.7 Fresno, CA 1,026,046 24.60-22,921 0.0 2.5 Honolulu, HI 4,966,720 35.52-64,291-0.3 1.7 Las Vegas, NV 1,103,341 31.56 4,106-4.0 1.9 Los Angeles, CA 18,098,100 37.32-53,000 1.3 3.0 Oakland, CA 10,562,045 33.96-41,698 3.7 10.5 Phoenix, AZ 9,473,518 22.90 52,232-0.2 0.7 Portland, OR* 13,101,110 25.92-75,177 1.7-0.8 Reno, NV 583,955 23.60-3,272-1.9-1.0 Sacramento, CA 5,945,146 31.32 18,734-1.1-2.6 San Diego, CA 7,257,266 29.04-107,547 2.1 2.5 San Francisco, CA 57,113,693 55.33 282,796 5.7 15.9 San Jose/Silicon Valley, CA 3,493,453 33.96 1,800 2.2 6.8 Seattle/Puget Sound, WA 32,199,750 33.79 202,236 3.3 7.1 Stockton, CA 2,790,574 20.04 18,572 1.2 1.2 Walnut Creek, CA 7,271,861 27.84 41,552 0.4 1.8 West Total 199,492,170 38.15 363,189 3.3 8.8 U.S. TOTAL/AVERAGE 1,065,804,499 44.24 2,691,856 2.6 7.1 *Long Island, Pittsburgh and Portland data is from Q4 2013. **Detroit data is from Q3 2013. P. 12 COLLIERS INTERNATIONAL

HIGHLIGHTS OFFICE NORTH AMERICA UNITED STATES SUBURBAN OFFICE ALL INVENTORY INVENTORY NEW SUPPLY UNDER CONSTRUCTION DEC 31, 2013 NORTHEAST Baltimore, MD 88,313,969 733,400 0 12.78 12.24 1,117,891 Boston, MA 112,558,294 0 1,621,398 18.54 18.06 465,723 Fairfield County, CT 41,029,234 0 0 13.83 13.88-21,780 Hartford, CT 12,784,662 0 0 15.14 13.04 268,458 Long Island, NY* 74,441,967 17,500 83,799 10.37 10.18 59,574 New Jersey Central 131,315,428 20,525 0 16.12 15.66 630,497 New Jersey Northern 163,629,090 40,018 0 15.52 15.73-227,866 Philadelphia, PA 110,589,759 409,768 444,838 15.07 15.25 154,339 Pittsburgh, PA* 89,949,523 72,758 1,358,555 7.47 7.23 313,974 Washington, DC 288,069,589 40,000 4,417,114 16.50 16.85-992,938 Westchester County, NY 37,475,453 0 382,000 13.07 13.30 441,600 Northeast Total 1,150,156,968 1,333,969 8,307,704 14.77 14.72 2,209,472 SOUTH Atlanta, GA 171,846,820 0 1,138,554 16.64 16.03 973,919 Birmingham, AL 14,683,132 0 0 14.15 15.02-128,147 Charleston, SC 9,818,033 114,880 215,000 11.58 11.51 91,032 Charlotte, NC 62,212,257 135,735 284,876 12.41 12.30 166,905 Columbia, SC 4,966,961 0 0 23.69 22.62 52,966 Dallas, TX 240,233,017 321,680 4,699,879 14.91 14.55 1,150,240 Ft. Lauderdale-Broward, FL 42,915,729 0 320,000 14.29 14.50-89,802 Ft. Worth, TX 20,935,696 0 760,935 10.56 10.47 20,007 Greenville, SC 4,896,690 0 0 18.87 19.60-35,824 Houston, TX 167,004,638 2,203,414 14,002,344 12.14 11.94 2,270,623 Jacksonville, FL 46,157,943 12,151 219,488 12.43 11.75 315,140 Little Rock, AR 7,521,709 0 0 13.33 12.59 29,076 Memphis, TN 27,125,867 0 241,000 15.03 14.65 123,510 Miami-Dade, FL 65,856,673 0 173,537 11.37 11.18 196,117 Nashville, TN 14,982,680 239,000 731,000 4.65 6.00 25,340 Orlando, FL 54,412,681 86,581 185,428 13.54 13.65 16,518 Raleigh/Durham/Chapel Hill, NC 64,739,388 58,072 1,248,552 13.04 13.00-8,699 Richmond, VA 34,701,543 15,000 43,000 10.02 10.35-100,598 Savannah, GA 1,461,838 0 0 19.29 19.88-8,571 Tampa Bay, FL 57,275,381 0 18,000 17.91 17.66 142,244 West Palm Beach/Palm Beach County, FL 28,494,121 30,000 133,586 18.11 17.66 168,999 South Total 1,142,242,797 3,216,513 24,415,179 14.02 13.78 5,370,995 *Long Island, Pittsburgh and Portland data is from Q4 2013. **Detroit data is from Q3 2013. COLLIERS INTERNATIONAL P. 13

HIGHLIGHTS OFFICE NORTH AMERICA UNITED STATES SUBURBAN OFFICE ALL INVENTORY (continued) INVENTORY NEW SUPPLY UNDER CONSTRUCTION DEC 31, 2013 MIDWEST Chicago, IL 155,400,746 0 0 16.56 17.00-674,174 Cincinnati, OH 46,444,317 0 1,000,000 16.13 15.80 153,274 Cleveland, OH 42,798,934 0 217,474 11.14 11.25-49,060 Columbus, OH 44,027,261 0 396,840 10.57 10.46 47,848 Detroit, MI** 137,895,919 27,666 66,820 18.66 18.22-877,682 Grand Rapids, MI 12,439,041 0 104,528 21.60 18.77 964 Indianapolis, IN 43,264,183 0 132,991 9.62 9.70-34,048 Kansas City, MO 58,155,167 0 769,000 11.79 11.50 167,522 Milwaukee, WI 33,235,130 0 160,000 12.73 12.43 98,165 Minneapolis, MN 79,185,563 598,400 870,900 13.85 13.49 802,423 Omaha, NE 21,146,090 112,000 166,189 11.22 10.42 236,488 St. Louis, MO 55,394,777 183,000 435,000 9.04 9.56-88,297 Midwest Total 729,387,128 921,066 4,319,742 14.35 14.23-216,577 WEST Albuquerque, NM 10,877,999 0 0 16.27 15.69 63,242 Bakersfield, CA 6,070,404 8,984 77,984 7.11 6.53 43,325 Boise, ID 17,154,856 0 137,561 10.19 12.42-247,813 Denver, CO 106,095,670 621,035 709,757 13.05 13.04 304,644 Fairfield, CA 5,008,186 0 30,000 20.40 20.91-25,659 Fresno, CA 17,562,156 20,000 0 14.08 13.10 189,879 Honolulu, HI 7,730,394 0 0 10.90 11.85-14,701 Las Vegas, NV 36,591,706 47,000 468,000 22.58 22.41 96,786 Los Angeles, CA 167,879,800 152,300 1,588,000 17.82 17.64 364,700 Los Angeles Inland Empire, CA 20,588,091 94,891 58,000 19.14 18.90 112,500 Oakland, CA 16,271,372 106,221 0 19.72 19.99-64,320 Orange County, CA 81,034,800 0 860,000 14.99 15.67-584,100 Phoenix, AZ 111,009,754 117,710 0 18.84 18.31 677,939 Pleasanton/Tri-Valley, CA 27,748,942 0 0 11.84 12.81-299,353 Portland, OR* 43,336,020 0 50,644 9.95 9.97-8,127 Reno, NV 9,625,581 0 0 14.00 14.20-18,625 Sacramento, CA 52,144,531 68,417 77,000 19.13 18.91 141,121 San Diego, CA 72,053,974 541,135 464,917 13.13 12.81 698,502 San Francisco Peninsula 35,178,978 67,098 216,000 11.37 11.28-14,561 San Jose/Silicon Valley, CA 64,342,407 465,283 2,305,928 11.40 9.89 261,433 Seattle/Puget Sound, WA 56,697,125 0 190,400 10.09 10.31-80,643 Walnut Creek, CA 5,513,617 0 0 17.03 16.27 41,687 West Total 970,516,363 2,310,074 7,234,191 15.17 15.01 1,637,856 U.S. TOTAL/AVERAGE 3,992,303,256 7,781,622 44,276,816 14.57 14.43 9,001,746 *Long Island, Pittsburgh and Portland data is from Q4 2013. **Detroit data is from Q3 2013. P. 14 COLLIERS INTERNATIONAL

HIGHLIGHTS OFFICE NORTH AMERICA UNITED STATES SUBURBAN OFFICE CLASS A INVENTORY QUOTED RENT (USD PSF) DEC 31, 2013 QUARTERLY RENT (%) RENT (%) NORTHEAST Baltimore, MD 32,057,456 24.00 14.31 13.25-3.5-4.0 877,044 Boston, MA 48,167,313 25.95 16.61 16.52 1.8 2.7 93,065 Fairfield County, CT 17,951,999 39.02 12.90 11.74 0.1 4.8-74,311 Hartford, CT 7,123,495 21.37 14.95 12.82 0.0 4.7 151,908 Long Island, NY* 25,283,739 30.38 10.43 9.98 0.3-0.3-8,666 New Jersey Central 61,295,100 25.73 16.39 15.42 0.6-2.7 594,718 New Jersey Northern 87,786,735 27.94 17.49 18.04 3.7 5.5-448,224 Philadelphia, PA 67,413,158 25.43 13.59 13.55 1.0 2.6 382,819 Pittsburgh, PA* 16,646,383 21.85 6.16 5.59-1.6-0.5 126,967 Washington, DC 137,649,927 32.50 16.49 17.16 0.0-1.2-880,154 Westchester County, NY 17,570,629 27.38 15.75 15.60 1.7 2.9 529,976 Northeast Total 518,945,934 28.33 15.37 15.31 0.8 0.9 1,345,142 SOUTH Atlanta, GA 81,389,815 22.68 14.57 14.09 0.7 2.3 397,015 Birmingham, AL 9,276,993 20.69 10.67 11.88 0.0-0.7-112,014 Charleston, SC 3,689,350 24.41 6.36 6.04 2.3-0.2 54,717 Charlotte, NC 20,105,237 23.16 13.81 13.89 0.9 1.6-16,697 Columbia, SC 1,001,769 17.12 17.46 18.42 0.2 4.1-9,607 Dallas, TX 96,558,826 24.70 13.77 13.30 2.9 6.5 622,193 Ft. Lauderdale-Broward, FL 10,570,258 27.18 16.57 14.79 0.1-0.7 188,660 Ft. Worth, TX 3,462,446 24.95 1.75 1.55 0.2 1.8 7,040 Greenville, SC 2,458,553 19.09 13.54 14.46 4.7 7.2-22,758 Houston, TX 73,524,938 31.83 9.10 8.48 4.9 7.8 2,148,853 Jacksonville, FL 9,183,187 19.46 9.90 9.31-2.7-1.6 53,959 Little Rock, AR 2,842,952 18.45 18.26 17.26 1.2-4.1 19,425 Memphis, TN 8,135,106 21.02 8.19 8.01-0.8 0.2 15,041 Miami-Dade, FL 16,163,894 32.51 15.53 15.20 0.8 1.9 53,384 Nashville, TN 7,539,146 25.00 3.26 6.75 1.8 4.6-21,207 Orlando, FL 16,829,913 21.17 16.71 17.05-0.1 1.5-56,721 Raleigh/Durham/Chapel Hill, NC 25,186,477 21.31 11.64 11.64 1.0 4.4 666 Richmond, VA 13,775,329 17.91 8.69 9.55-0.8-0.7-118,929 Savannah, GA 490,035 23.33 15.89 15.96 6.2 3.2-320 Tampa Bay, FL 18,368,902 23.50 17.22 17.19 0.3 1.9 4,193 West Palm Beach/Palm Beach County, FL 9,008,923 31.39 17.79 18.32 2.5 4.3-47,311 South Total 429,562,049 25.00 12.78 12.52 2.1 4.4 3,159,582 *Long Island, Pittsburgh and Portland data is from Q4 2013. **Detroit data is from Q3 2013. COLLIERS INTERNATIONAL P. 15

HIGHLIGHTS OFFICE NORTH AMERICA UNITED STATES SUBURBAN OFFICE CLASS A (continued) INVENTORY QUOTED RENT (USD PSF) DEC 31, 2013 QUARTERLY RENT (%) RENT (%) MIDWEST Chicago, IL 77,370,162 27.32 17.33 18.44-0.4 0.2-854,605 Cincinnati, OH 18,130,644 19.61 17.96 17.79 2.5-2.0 30,960 Cleveland, OH 9,063,399 21.34 12.29 11.75 0.6-0.1 48,422 Columbus, OH 18,337,079 19.31 9.33 9.00-0.4 0.7 60,883 Detroit, MI** 34,571,052 20.16 16.43 15.30 4.2-1.8 850,872 Grand Rapids, MI 796,522 17.50 26.07 17.14 0.0 0.0 8,139 Indianapolis, IN 12,456,333 18.45 12.64 12.52 0.5 1.1 15,123 Kansas City, MO 16,231,344 20.54 10.80 11.09-0.5 0.7-47,088 Milwaukee, WI 6,116,590 19.45 12.65 11.05-4.4-5.4 97,491 Minneapolis, MN 26,701,091 14.23 16.95 15.92 2.2 3.1 780,200 Omaha, NE 5,056,660 25.49 3.74 2.87 2.8-2.9 131,081 St. Louis, MO 26,374,431 21.85 8.81 9.15-0.7-1.6 72,637 Midwest Total 251,205,307 21.87 14.52 14.52 0.4-0.4 1,194,115 WEST Albuquerque, NM 811,008 22.10 6.40 4.31 5.5 6.0 16,981 Bakersfield, CA 2,776,404 24.00 5.84 5.84 0.0 0.0-191 Boise, ID 5,826,036 15.51 14.71 15.38 0.9 8.5-39,131 Denver, CO 34,959,680 25.12 11.24 12.17 1.9 4.4-22,087 Fairfield, CA 1,927,371 26.26 20.65 21.10 1.9 1.8-8,681 Fresno, CA 3,973,324 25.80 18.51 16.99 0.0 2.4 14,450 Las Vegas, NV 4,849,993 29.76 33.46 33.45 0.4 0.8 328 Los Angeles, CA 102,218,200 35.04 16.72 16.37 0.0 2.8 365,600 Los Angeles Inland Empire, CA 4,999,200 25.44 21.07 21.01 2.4 5.5 63,200 Oakland, CA 3,682,927 29.64 22.39 23.83 7.4 8.3-11,269 Orange County, CA 32,704,300 26.40 15.20 16.21 1.4 2.8-330,100 Phoenix, AZ 30,714,482 24.05 18.47 17.56 1.2 3.1 278,628 Pleasanton/Tri-Valley, CA 15,526,039 28.92 9.81 10.07 3.0 10.0-70,476 Portland, OR* 11,003,028 23.50 11.58 11.62-0.3 0.3-4,046 Reno, NV 912,364 20.79 15.93 14.93 0.8 9.0 9,129 Sacramento, CA 14,682,299 22.32 17.78 17.39 0.5 1.1 56,858 San Diego, CA 24,414,511 35.28 12.16 12.38 3.2 4.6 422,616 San Francisco Peninsula 22,523,111 43.68 11.07 10.33 1.1 3.1 141,107 San Jose/Silicon Valley, CA 33,287,282 42.72 13.74 12.45-1.7 9.2 284,624 Seattle/Puget Sound, WA 20,754,950 33.14 9.27 9.42 0.9-0.5-42,629 Walnut Creek, CA 737,964 28.68 18.18 19.13 0.0 4.7-6,979 West Total 373,284,473 31.61 14.77 14.61 1.1 4.2 1,117,932 U.S. TOTAL/AVERAGE 1,572,997,763 27.17 14.38 14.26 1.2 2.5 6,816,771 *Long Island, Pittsburgh and Portland data is from Q4 2013. **Detroit data is from Q3 2013. P. 16 COLLIERS INTERNATIONAL