Global Office Real Estate Review Mid-Year 2009
Contents Global Summary and Regional Synopses........................... 1 6 GLOBAL OFFICE MARKETS Europe, Middle East & Africa (EMEA)............................. 7 8 North America............................................... 8 9 Asia Pacific and Latin America...................................... 9 CONSTRUCTION AND VACANCY EMEA..................................................... 10 11 North America............................................. 11 12 Asia Pacific and Latin America..................................... 12 CENTRAL BUSINESS DISTRICT SURVEY EMEA Occupancy Costs.................................... 13 14 North America Occupancy Costs............................ 14 15 Asia Pacific and Latin America Occupancy Costs.................... 15 EMEA U.S. Dollars Occupancy Costs/Sales Prices/Cap Rates...................... 16 17 North America U.S. Dollars Occupancy Costs/Sales Prices/Cap Rates...................... 17 18 Asia Pacific and Latin America U.S. Dollars Occupancy Costs/Sales Prices/Cap Rates.......................... 18 SUBURBAN/OUT-OF-TOWN SURVEY EMEA Occupancy Costs.................................... 19 20 North America Occupancy Costs............................ 20 21 Asia Pacific and Latin America Occupancy Costs.................... 21 EMEA U.S. Dollars Occupancy Costs/Sales Prices/Cap Rates...................... 22 23 North America U.S. Dollars Occupancy Costs/Sales Prices/Cap Rates...................... 23 24 Asia Pacific and Latin America U.S. Dollars Occupancy Costs/Sales Prices/Cap Rates.......................... 24 Glossary....................................................... 25 Colliers Office Locations......................................... 26 RESEARCH CONTACTS North America Ross Moore ross.moore@colliers.com Europe, Middle East & Africa Kate Lawler kate.lawler@colliers.com Asia Pacific Simon Lo simon.lo@colliers.com Latin America Mario Rivera mario.rivera@colliers.com Australia & New Zealand Felice Spark felice.spark@colliers.com Japan Yumiko Yasuda yumiko.yasuda@colliers.com For more detailed information, please go to http://www.colliers.com and view Colliers latest market reports. Cover photo of Vancouver, Canada, home of the 2010 Winter Olympics.
GLOBAL OFFICE REAL ESTATE REVIEW MID-YEAR 2009 OFFICE CONSTRUCTION TOP 50 CITIES UNDER CONSTRUCTION MILLION SF Market (Ranked by June 2009) June 2009 Dec. 2008 June 2008 Global Office Market Shows Further Deterioration Moscow 40.9 43.0 69.9 Guangzhou 35.5 21.1 19.8 Shanghai 29.3 35.4 41.6 Dubai 27.1 40.9 42.0 Paris 17.2 20.2 18.6 Beijing 11.5 15.3 12.3 Tokyo Central Wards 11.5 7.8 7.8 Singapore 10.0 10.3 8.6 Washington DC Metro 9.7 12.3 14.0 London 9.6 11.0 12.3 Mexico City 9.5 9.7 7.1 Sofia 9.3 9.7 7.9 Abu Dhabi 9.3 4.0 5.0 São Paulo 9.2 11.2 15.6 Mumbai 9.0 9.6 3.8 Brussels 8.6 8.1 4.5 Munich 7.9 6.2 5.0 Seoul 7.8 11.6 13.4 Jakarta 7.8 8.5 8.6 Bogotá 7.7 7.7 6.3 Calgary 6.5 9.8 11.9 New York 6.4 9.1 9.3 Toronto 6.2 6.1 5.4 Seattle 5.0 6.2 7.3 Hamburg 4.8 3.4 2.3 Bangalore 4.7 12.2 5.1 Delhi 4.7 6.0 11.7 Houston 4.3 6.3 9.7 Madrid 4.3 4.3 4.3 Chennai 4.2 7.9 4.0 Saint Petersburg 4.1 10.0 12.2 Milan 3.9 4.3 5.4 Frankfurt 3.8 2.1 3.0 Düsseldorf 3.7 5.3 0.6 Santiago 3.7 4.8 4.9 Budapest 3.6 5.8 4.2 Miami/Dade County 3.5 3.4 4.3 Bucharest 3.2 7.4 5.6 Atlanta 3.2 4.3 5.3 Dallas/Ft. Worth 3.2 4.0 6.3 Rio de Janeiro 3.2 3.2 4.4 Amsterdam 3.0 3.2 3.7 Belgrade 2.9 3.2 4.4 Chicago 2.7 5.0 4.8 Warsaw 2.7 4.3 5.4 Charlotte 2.7 3.4 4.5 Perth 2.6 3.0 2.5 Melbourne 2.6 2.7 Kiev 2.5 3.5 12.2 Phoenix 2.4 3.6 6.9 Ross J. Moore Executive Vice President, Market and Economic Research Despite signs the global economic downturn is beginning to subside, office markets around the world again posted decidedly weaker results at mid-year compared with six months prior. All regions of the world continue to experience below trend growth and as a result demand for office space is sub-par relative to the recent past. In particular, the United States, Japan and much of central and eastern Europe are key sources of weakness. A year ago only major financial centers were reporting sluggish leasing activity, however, over the past twelve months weakness has spread to all continents and almost all countries. All regions again reported higher vacancies and most reported falling rents. A handful of cities in particular saw vacancies surge and rents plunge. In parallel with sluggish leasing conditions, office investment sales activity was very limited with most regions reporting first half 2009 transaction activity well down from first half 2008 levels. The outlook for the balance of 2009 is for a further weakening in fundamentals and little prospect of recovery until early in 2010. All eyes will be on the debt markets which remain a key ingredient before any type of recovery can begin. Europe, Middle East & Africa (EMEA) Amidst continuing economic troubles throughout the region and weak office demand, the EMEA average vacancy rate rose to 11.4% at mid-year 2009. This marks an increase of over two and a half percentage points during the first six months of the year and brings the EMEA vacancy to its highest level since 2004. The rise in vacancy was felt across the region, but was most dramatic in the Baltic States, Russia, Ireland, Romania, Turkey, Ukraine, the United Arab Emirates and the United Kingdom. Eight EMEA cities are now registering vacancy rates of 20% or higher; six months ago, the highest vacancy rates in the region were near the 15% mark. With vacancy increasing, Class A rents decreased by a further 4.5% in the first half of 2009, following a 6% drop in the second half of 2008. Eastern Europe and the Middle East saw the largest declines, as recent construction booms took their toll in Abu Dhabi and Dubai as well as Moscow, Saint Petersburg and Kiev. With a few exceptions, markets in Western Europe fared somewhat better in the first half of the year, as rents in Belgium, France, Germany, The Netherlands, Switzerland, the United Kingdom and the Nordic countries decreased only marginally. Owing to severe rental declines in Dubai and Moscow (and the strengthened Pound Sterling), London regained its position as the most expensive office market in the region, with current average Class A asking rents in the West End sub-market at USD 126/sf/ year (though generous tenant incentives are keeping headline rents artificially high). Beyond London; Moscow, Paris, Dubai and Dublin rounded out the top five cities. COLLIERS INTERNATIONAL 1
COLLIERS INTERNATIONAL GLOBAL OFFICE REAL ESTATE REVIEW MID-YEAR 2009 GLOBAL VACANCY RATES (%) Month/Year June 2003 9.5 14.7 15.1 18.5 Dec. 2003 11.3 13.4 15.1 15.2 June 2004 10.7 12.4 14.9 12.4 Dec. 2004 11.7 14.0 14.2 12.2 June 2005 9.7 8.6 14.2 11.5 Dec. 2005 8.3 8.2 13.5 9.2 June 2006 8.0 7.6 13.1 7.3 Dec. 2006 7.4 7.1 12.6 7.6 June 2007 6.8 7.7 12.4 5.2 Dec. 2007 6.7 8.1 12.6 3.8 June 2008 7.1 7.7 13.2 2.6 Dec. 2008 8.5 8.7 14.2 2.7 June 2009 11.4 11.4 15.5 4.5 EMEA VACANCY RATES (%) Month/Year EMEA Asia Pacific USA Latin America London West End Paris Frankfurt Moscow June 2003 11.7 5.8 12.0 6.7 Dec. 2003 11.7 4.6 15.0 6.7 June 2004 10.8 5.5 16.1 6.8 Dec. 2004 10.7 5.7 17.7 6.6 June 2005 10.9 5.5 16.7 6.3 Dec. 2005 8.8 5.8 16.7 5.8 June 2006 7.5 5.2 16.9 3.1 Dec. 2006 6.4 5.2 15.6 2.4 June 2007 5.2 5.0 15.3 2.6 Dec. 2007 4.1 4.8 15.2 4.5 June 2008 5.4 5.1 14.5 3.6 Dec. 2008 6.1 5.4 14.7 9.5 June 2009 9.9 6.4 15.9 16.9 ASIA PACIFIC VACANCY RATES (%) Month/Year Hong Kong Shanghai Sydney Tokyo June 2003 15.1 14.7 8.5 8 Dec. 2003 14.3 11.0 9.5 8 June 2004 10.2 10.0 10.3 7.5 Dec. 2004 6.3 7.2 11.2 7 June 2005 4.4 6.1 10.1 6.0 Dec. 2005 4.7 5.0 9.6 5.0 June 2006 3.8 5.4 9.4 4.0 Dec. 2006 3.3 3.7 7.9 3.9 June 2007 3.3 3.1 5.6 3.9 Dec. 2007 1.8 2.5 3.7 2.5 June 2008 1.5 5.5 4.3 3.5 Dec. 2008 4.1 10.3 5.4 4.0 June 2009 5.1 14.1 7.7 6.5 The amount of office space under construction is down 8% from year-end 2008 and 23% from one year ago, evidence that development pipelines have slowed dramatically. Nevertheless, vacancy will continue to increase over the second half of 2009, and further rental declines are expected in 50% of the markets included in this survey. Current market conditions have spurred many tenants either to renegotiate more favorable lease terms or to move into markets and/or properties previously considered too expensive. Tenant incentives have also increased dramatically, with long rent-free periods (in some cases up to several years on long contracts), low or no service charges, and free fitouts are increasingly common. Asia Pacific The Asia Pacific region posted weak results during the first half of the year with the regional vacancy rate increasing by 278 basis points to register 11.4%. This increase comes on top of a rise in vacancy recorded in latter half of 2008 and brings the region s vacancy rate back to levels experienced in 2005. The jump in vacancies during the first half of the year was recorded in every city across the region. Noticeably large increases were recorded in Shanghai, Perth and Brisbane with vacancy rates up by over 750 basis points since the beginning of the year. Guangzhou posted the highest vacancy rate in the region at 24.4% followed by Chennai and Beijing at 22.5% and 19.2% respectively. Seoul recorded the region s lowest vacancy rate at just 3.1%. Office rents declined broadly across the region with only just a few cities spared. For the first six months of the year rents fell 11.8% on average. Sizeable declines were witnessed in all the Indian markets as well as Singapore, Hong Kong, Beijing, Taipei, Tokyo and most Australian cities. The Asia Pacific region remains characterized by high levels of office construction with Beijing, Guangzhou, Shanghai and Singapore all with at least 10 million square feet of construction currently underway. Construction in these four cities totals 86.3 million square feet. On the demand side, the region is split with China, India and Indonesia in particular continuing to register positive growth rates, while Hong Kong, Japan, New Zealand, Malaysia, South Korea, Singapore and Taiwan are all expected to see their respective economies contract in 2009. In a ranking of highest occupancy costs (average Class A gross rents) Hong Kong took the top spot, both within the region and the world at $138.00 USD per square foot with Tokyo second in the region (3rd spot worldwide) at $102.00 USD per square foot. 2 COLLIERS INTERNATIONAL
COLLIERS INTERNATIONAL GLOBAL OFFICE REAL ESTATE REVIEW MID-YEAR 2009 United States/Canada The U.S. office market turned decidedly more bearish in the first half of 2009 as companies gave back space and economic conditions worsened. Combined with additional new construction the overall vacancy rate increased almost one and half percentage points to average 15.5%. Rents continued to reflect weakness in the general economy with downtown lease rates down 10.3% while suburban lease rates fell a more modest 2.6%. Looking forward, office space fundamentals are sure to continue weakening as new construction comes online and demand is expected to remain subdued through until the end of 2009 and into next year. Job losses remain elevated with businesses still looking to dispose of excess space leaving leasing conditions exceptionally weak. With the exception of education, health care and government services all sectors of the economy remain sources of weakness. However, with a few signs of recovery in a number of areas including finance, the office market may show signs of stabilizing by early/mid 2010 but considerable risks still exist. Canadian markets also weakened in the first half of the year, albeit by modest standards compared to the United States. Combined with construction coming online, vacancies moved higher while rents were more mixed. Against a very weak global economy the Canadian office market continues to demonstrate surprising strength, however, like the U.S., job losses are still prevalent but there are increasing signs the domestic economy may be past the worst. Midtown Manhattan continued to hold the top spot for North American office occupancy costs with average Class A rents at $70.00 USD per square foot although this represents a 15.2% decline from year-end. NORTH AMERICA VACANCY RATES (%) Month/Year Washington DC New York Midtown Toronto San Francisco June 2003 6.8 12.3 11.7 17.4 Dec. 2003 7.2 11.8 11.7 16.9 June 2004 7.4 11.4 10.9 17.0 Dec. 2004 7.5 10.5 11.0 15.4 June 2005 7.3 9.6 10.1 14.6 Dec. 2005 7.2 8.0 9.8 13.2 June 2006 7.2 7.4 9.4 12.4 Dec. 2006 7.1 6.5 8.8 11.6 June 2007 7.3 6.4 6.0 11.1 Dec. 2007 7.4 6.8 5.6 9.9 June 2008 7.9 8.2 5.2 10.4 Dec. 2008 7.8 10.2 4.6 12.6 June 2009 9.6 13.8 5.7 19.9 GLOBAL OFFICE OCCUPANCY COSTS TOP 50 CITIES /PRIME SPACE PSF USD Market (Ranked by June 2009) June 2009 Dec. 2008 June 2008 Hong Kong 138.08 177.86 213.68 London West End 125.52 112.16 207.42 Tokyo Central Wards 101.57 128.40 129.01 London City 90.83 82.85 145.59 Moscow 90.09 139.41 167.29 Paris 81.53 80.56 88.04 Rio de Janeiro 80.12 66.27 90.11 London Southbank 77.62 70.91 Dubai 75.82 104.95 96.12 Dublin 74.36 75.97 96.25 New York, NY Midtown 69.70 82.11 96.95 Mumbai 67.84 98.80 102.00 Milan 67.84 55.02 61.63 London Docklands 67.71 61.51 109.69 Abu Dhabi 66.98 91.80 75.89 Minsk 62.66 Birmingham 61.11 52.82 74.79 Frankfurt 59.53 50.46 49.30 Bristol 59.45 52.10 71.80 Saint Petersburg 58.51 71.28 90.99 Edinburgh 57.80 50.65 71.80 São Paulo 57.23 52.07 69.31 Glasgow 56.15 49.20 67.81 Manchester 56.15 49.20 67.81 Perth 55.99 57.74 80.34 Singapore 55.53 97.07 125.06 Stockholm 55.13 57.44 74.63 Geneva 53.90 56.32 58.37 Delhi 53.04 86.45 88.92 New York, NY Midtown S. 51.30 59.33 62.08 Boston, MA 50.10 61.93 62.25 Washington, DC 49.60 50.18 51.07 Rome 49.57 57.64 56.49 Munich 49.35 51.09 53.88 New York, NY Downtown 48.60 56.53 59.67 Brisbane 47.04 47.79 66.95 Toronto, ON 46.37 47.18 51.63 Sydney 45.53 52.60 68.74 Shanghai 44.60 52.78 53.90 Madrid 43.86 55.02 66.03 Zurich 43.63 44.88 46.51 Miami/Dade County, FL 43.50 44.10 43.02 Warsaw 43.08 59.45 58.1 Kyiv 42.38 67.55 129.37 Ottawa, ON 41.96 41.26 44.41 Calgary, AB 41.52 45.34 57.86 Hamburg 40.73 42.44 46.66 Edmonton, AB 40.48 37.20 46.48 Buenos Aires 40.48 47.40 49.52 Berlin 39.95 41.65 56.52 COLLIERS INTERNATIONAL 3
COLLIERS INTERNATIONAL GLOBAL OFFICE REAL ESTATE REVIEW MID-YEAR 2009 GLOBAL CAPITALIZATION RATES/INTIAL YIELDS 50 LOWEST CITIES CBD CAP RATE (%) Market (Ranked by June 2009) June 2009 Dec. 2008 June 2008 Hong Kong 3.28 4.02 3.42 Singapore 4.06 5.56 6.19 Vienna 4.50 3.50 3.50 Geneva 4.60 4.50 4.50 Tokyo Central Wards 4.60 4.10 3.90 Zurich 4.60 4.60 4.60 Munich 4.75 4.75 4.25 Los Angeles 4.90 5.00 5.00 Hamburg 5.00 5.50 5.50 Frankfurt 5.40 5.40 4.50 Berlin 5.50 5.45 5.25 Milan 5.50 5.00 4.75 Stockholm 5.50 5.90 4.75 Stuttgart 5.50 5.30 5.10 Copenhagen 5.75 5.75 5.00 Düsseldorf 5.75 5.12 5.25 Seoul 5.75 7.00 Vancouver 5.75 5.75 5.50 London West End 6.00 6.00 6.00 Madrid 6.00 6.00 5.25 Paris 6.00 6.00 5.00 Oslo 6.25 6.50 5.90 Brussels 6.30 6.25 5.70 Amsterdam 6.32 6.50 6.50 Eindhoven 6.40 7.30 7.30 Helsinki 6.40 6.00 5.20 Shanghai 6.40 7.60 7.30 Antwerp 6.50 6.50 6.00 Rome 6.50 6.00 5.25 Utrecht 6.50 6.50 - Victoria 6.50 6.50 6.50 The Hague 6.60 6.60 - Rotterdam 6.70 6.70 - London City 6.75 6.75 6.00 Washington, DC 6.95 6.30 5.75 Athens 7.00 6.70 6.50 Birmingham 7.00 7.00 5.80 Bristol 7.00 7.00 5.80 Edinburgh 7.00 7.00 5.80 Glasgow 7.00 7.00 5.80 London Docklands 7.00 7.00 5.30 London Southbank 7.00 7.00 Lyon 7.00 6.50 5.90 Manchester 7.00 7.00 5.80 New York Midtown 7.00 5.50 5.00 Prague 7.00 6.50 Toronto 7.00 6.60 6.00 Warsaw 7.00 6.50 5.75 Nantes 7.15 6.85 Washington, DC N. Virginia 7.15 7.00 6.60 Latin America For the second consecutive six month period the Latin America region registered higher vacancies across most markets. After a five year period of declining vacancy rates the regional office vacancy rate increased by 116 basis points during the latter half of 2008 and a further 176 basis points in the first half of 2009. The region s vacancy rate, however, averaged a very low 4.5% with both Rio de Janeiro and Lima boasting vacancies below 3.0%. Rents were more mixed with both Santiago and Bogotá registering increases while the rest were flat or down. Office construction remained concentrated in Bogotá, Mexico City and Sao Paulo with 26.4 million square feet currently underway. For these three cities this represents a 6.7% decrease from construction underway at the end of 2008. Rio de Janeiro took top spot as the most expensive office market in the region with average Class A gross rents of $80.00 USD per square foot (7th spot worldwide). LATIN AMERICA VACANCY RATES (%) Month/Year Mexico City São Paulo Buenos Aires Bogotá June 2003 19.0 13.4 18.7 6.8 Dec. 2003 16.2 14.7 18.2 4.0 June 2004 15.9 14.2 14.0 1.6 Dec. 2004 15.4 15.5 9.9 2.1 June 2005 16.5 14.8 7.6 2.1 Dec. 2005 13.1 11.0 3.0 1.8 June 2006 11.7 8.8 2.4 2.4 Dec. 2006 10.4 7.6 1.8 1.6 June 2007 8.0 5.9 2.9 1.3 Dec. 2007 7.6 3.3 1.4 0.9 June 2008 8.5 2.7 1.5 1.3 Dec. 2008 6.1 4.0 2.9 3.2 June 2009 5.1 5.7 6.2 7.3 4 COLLIERS INTERNATIONAL
COLLIERS INTERNATIONAL GLOBAL OFFICE REAL ESTATE REVIEW MID-YEAR 2009 Global Investment Sales Office investment sales continued to trend down in the first six months of 2009 with global sales totaling $36.2 billion, 69% below year ago levels and $233 billion under peak volume in the first half of 2007. The Americas led the decline with sales volume off 83% followed by EMEA down 64% and Asia Pacific 59%. Prices moved lower as capitalization rates/yields shifted higher in all regions of the world. EMEA cap rates in particular moved up 114 basis points followed by the Americas with a 47 basis point increase and Asia Pacific at just 28 basis points. The ongoing drought of debt capital combined with a more sluggish global economy put a considerable damper on investment sales with investors pulling back and lenders tightening underwriting standards. Cross boarder investment in particular dropped with most investors refocusing on domestic markets as opportunities emerged closer to home. This trend is not expected to continue, however, as a rising number of global investment funds are preparing to launch global distressed real estate funds in the coming months. Tokyo repeated its top market ranking while Japan took the most active country ranking. London stayed at number two while the UK replaced the U.S. as the second most active country. The U.S. fell to third position for office property sales and in the city rankings GLOBAL INVESTMENT SALES OFFICE PROPERTIES TOP 20 CITIES Market First Half 2009 (Million USD) Tokyo 6,586-46.4 London 3,600-63.4 Paris 1,720-73.0 Seoul 1,638-25.9 NYC Metro 1,221-85.8 Moscow 872-0.2 Shanghai 780-12.4 Munich 744 139.7 Madrid 743-55.4 Hong Kong 730-75.0 Beijing 677-76.4 DC Metro 669-76.9 Boston 650 21.2 Melbourne 610 71.8 LA Metro 592-76.6 Taipei 452 68.6 Berlin 422-58.9 Dusseldorf 421 12.9 Osaka 417-79.8 SF Metro 364-84.6 Source: Real Capital Analytics % Change COUNTRY GROWTH RATES % CHANGE IN GROSS DOMESTIC PRODUCT (GDP) Country (Ranked by 2009) 2009 2010 (Forecast) China 8.0 8.0 India 5.5 6.3 Indonesia 4.1 4.4 Peru 1.3 2.7 Australia 0.0 1.8 Poland -0.8 1.5 Brazil -1.0 2.7 Colombia -1.0 2.7 Philippines -1.0 3.7 Saudi Arabia -1.0 3.3 Israel -1.1 1.5 Chile -1.2 3.0 South Korea -1.8 2.0 Norway -2.0 0.5 New Zealand -2.1 0.7 Canada -2.2 1.8 South Africa -2.2 3.1 Switzerland -2.3 0.4 United States -2.6 2.0 France -2.8 0.8 Austria -3.2 0.2 Argentina -3.5 0.5 Belgium -3.5 0.4 Czech Republic -3.5 1.2 Greece -3.5-0.8 Denmark -3.9 0.6 Spain -3.9-0.6 United Kingdom -4.2 1.0 Netherlands -4.3 0.7 Sweden -4.9 1.3 Malaysia -5.0 3.3 Italy -5.1 0.4 Hong Kong -5.4 2.6 Slovakia -5.5 0.7 Turkey -5.6 2.3 Finland -5.7-0.1 Taiwan -5.7 2.5 Germany -5.9 0.8 Singapore -6.2 3.2 Hungary -6.3-1.0 Japan -6.4 1.1 Russia -7.0 2.5 Mexico -7.1 2.8 Ireland -7.7-2.6 Estonia -13.0-3.0 Lithuania -15.0-4.5 Latvia -17.0-4.0 Bold = G7 country Source: Economist Intelligence Unit, August 2009 COLLIERS INTERNATIONAL 5
COLLIERS INTERNATIONAL GLOBAL OFFICE REAL ESTATE REVIEW MID-YEAR 2009 CHANGE IN VACANCY RATES TOP 50 CITIES JUNE 2008 TO JUNE 2009 Market BPS Riga 2,010 Vilnius 1,820 Kyiv 1,800 Dubai 1,700 Saint Petersburg 1,650 Tallinn 1,410 Riyadh 1,400 Moscow 1,330 Abu Dhabi 1,300 Istanbul 1,031 Sofia 977 Dublin 950 Brisbane 950 Shanghai 860 Perth 770 San Jose/Silicon Valley, CA 764 Charleston, NC 745 Los Angeles, CA Inland Empire 737 Manchester 680 San Francisco, CA Peninsula 633 Belgrade 620 London City 610 Glasgow 600 Bogotá 600 Las Vegas, NV 597 Bristol 590 Birmingham 580 New York, NY Midtown 546 Budapest 542 Calgary, AB 519 Phoenix, AZ 511 Rome 500 Delhi 500 Milan 500 Columbia, SC 472 Buenos Aires 470 Honolulu, HI 469 Pleasanton/Walnut Creek, CA 450 London West End 450 Raleigh/Durham/Chapel Hill, NC 444 Prague 433 Greenville, SC 427 Beijing 415 Nashville, TN 397 Taipei 390 Boise, ID 388 New York Midtown S. 381 Boston, MA 377 Los Angeles, CA 366 San Francisco, CA 366 Manhattan sunk to number five. Paris moved up to number three spot. Rounding out the top five was Seoul at number four. Just six properties traded above $500 million in the first half of 2009, although three of those were partial interests, and only one major portfolio transaction closed. With a slowdown in the global economy and the re-pricing of debt an upward movement in capitalization rates/yields was witnessed in many markets. Major markets continued to be particularly hard hit during the first six months of the year with New York s midtown submarket registering another outward movement in capitalization rates. At mid year midtown Manhattan capitalization rates averaged 7.00% compared with 5.50% at year-end 2008. Rome, Milan, Prague and Warsaw also saw capitalization rates increase all rising by 50 basis points. In Asia Pacific, Tokyo also saw capitalization rates increase by 50 basis points to average 4.6%. By comparison Singapore capitalization rates were down 150 basis points and Hong Kong down 74. In Canada, Toronto capitalization rates increased by 40 basis points to register 7.00%. As real estate worldwide gets re-priced capitalization rates are expected to drift higher as fundamentals weaken and credit markets remain fragile. HIGHEST VACANCY RATES (%) Market June 2009 Riga 30.0 Fairfield, CA 26.0 Guangzhou 24.4 Las Vegas, NV 23.6 Los Angeles, CA Inland Empire 23.5 Greenville, SC 23.1 Chennai 22.5 Dublin 22.0 Birmingham 21.4 Phoenix, AZ 21.4 LOWEST VACANCY RATES (%) Market June 2009 Pretoria 4.5 London Southbank 4.0 Santiago 3.8 Seoul 3.1 Lima 2.7 Tirana 2.0 Geneva 2.0 Victoria, BC 1.9 Regina, SK 1.6 Rio de Janeiro 0.6 6 COLLIERS INTERNATIONAL
GLOBAL OFFICE MARKETS MID-YEAR 2009 EXISTING INVENTORY JUNE 2009 MARKET COUNTRY POPULATION SF SM GEOGRAPHIC AREA EUROPE, MIDDLE EAST AND AFRICA (EMEA) Tirana Albania 343,078 763,422 70,950 CBD Vienna Austria 1,687,271 116,423,200 10,820,000 Metro Minsk Belarus 1,829,100 1,721,600 160,000 CBD Antwerp Belgium 1,715,707 21,520,000 2,000,000 Metro Brussels Belgium 1,048,491 136,974,800 12,730,000 Metro Sofia Bulgaria 1,247,059 10,383,400 965,000 Metro Zagreb Croatia 691,724 10,544,800 980,000 Metro Prague Czech Republic 1,233,211 28,133,279 2,614,617 Metro Copenhagen Denmark 1,636,749 119,436,000 11,100,000 Metro Tallinn Estonia 398,594 4,928,080 458,000 Metro Helsinki Finland 576,632 89,308,000 8,300,000 Metro Bordeaux France 232,260 21,928,880 2,038,000 Metro Lyon France 472,305 49,496,000 4,600,000 Metro Montpellier France 251,634 10,760,000 1,000,000 Metro Nantes France 282,853 26,900,000 2,500,000 Metro Paris France 11,532,398 538,000,000 50,000,000 Metro Strasbourg France 272,975 30,128,000 2,800,000 Metro Toulouse France 437,715 35,508,000 3,300,000 Metro Berlin Germany 3,416,255 192,066,000 17,850,000 Metro Düsseldorf Germany 584,217 79,827,429 7,418,906 Metro Frankfurt Germany 659,021 126,860,400 11,790,000 Metro Hamburg Germany 1,770,629 137,620,400 12,790,000 CBD Munich Germany 1,311,573 234,460,400 21,790,000 Metro Stuttgart Germany 591,762 79,525,008 7,390,800 Metro Athens Greece 3,187,734 57,835,000 5,375,000 Metro Budapest Hungary 1,702,297 23,831,495 2,214,823 Metro Dublin Ireland 1,045,769 33,248,400 3,090,000 Metro Tel Aviv Israel 2,203,700 26,362,000 2,450,000 Metro Milan Italy 1,299,633 125,892,000 11,700,000 Metro Rome Italy 2,718,768 96,840,000 9,000,000 Metro Riga Latvia 713,016 3,561,560 331,000 Metro Vilnius Lithuania 546,733 3,206,480 298,000 Metro Amsterdam Netherlands 755,605 72,630,000 6,750,000 CBD Eindhoven Netherlands 212,269 15,279,200 1,420,000 CBD Rotterdam Netherlands 587,134 38,198,000 3,550,000 CBD The Hague Netherlands 481,864 49,765,000 4,625,000 CBD Utrecht Netherlands 299,891 27,438,000 2,550,000 CBD Oslo Norway 575,475 91,460,000 8,500,000 Metro Warsaw Poland 1,707,981 33,925,871 3,152,962 Metro Lisbon Portugal 489,562 46,035,347 4,278,378 Metro Bucharest Romania 1,931,838 11,513,200 1,070,000 Metro Moscow Russia 10,470,318 116,208,000 10,800,000 Metro Saint Petersburg Russia 4,568,047 11,567,000 1,075,000 Metro Riyadh Saudi Arabia 4,087,152 7,202,884 669,413 Metro Belgrade Serbia 1,120,092 9,630,200 895,000 Metro Bratislava Slovakia 428,791 13,272,686 1,233,521 Metro Cape Town South Africa 3,497,097 8,102,495 753,020 CBD Durban South Africa 3,468,086 7,456,389 692,973 CBD Johannesburg South Africa 3,888,180 16,703,921 1,552,409 CBD Pretoria South Africa 2,345,908 5,132,724 477,019 CBD Sandton South Africa 125,583 13,816,152 1,284,029 CBD Madrid Spain 6,271,638 156,020,000 14,500,000 Metro Stockholm Sweden 1,889,945 17,861,600 1,660,000 CBD Geneva Switzerland 438,177 46,806,000 4,350,000 Metro Zurich Switzerland 1,307,567 109,752,000 10,200,000 Metro Istanbul Turkey 12,573,836 24,632,481 2,289,264 Metro Abu Dhabi United Arab Emirates 630,000 18,023,000 1,675,000 Metro Dubai United Arab Emirates 1,354,980 39,686,140 3,688,303 Metro CBD = Central Business District Metro = Metropolitan Area COLLIERS INTERNATIONAL 7
GLOBAL OFFICE MARKETS MID-YEAR 2009 EXISTING INVENTORY JUNE 2009 MARKET COUNTRY POPULATION SF SM GEOGRAPHIC AREA EMEA continued Kyiv Ukraine 2,765,531 763,422 70,950 CBD Birmingham United Kingdom 2,284,093 116,423,200 10,820,000 Metro Bristol United Kingdom 551,066 1,721,600 160,000 CBD Edinburgh United Kingdom 446,110 21,520,000 2,000,000 Metro Glasgow United Kingdom 634,680 136,974,800 12,730,000 Metro London City United Kingdom 7,556,900 10,383,400 965,000 Metro London Docklands United Kingdom 7,556,900 10,544,800 980,000 Metro London Southbank United Kingdom 7,556,900 28,133,279 2,614,617 Metro London West End United Kingdom 7,556,900 119,436,000 11,100,000 Metro Manchester United Kingdom 2,244,931 4,928,080 458,000 Metro NORTH AMERICA Calgary, AB Canada 1,079,310 50,928,000 4,733,086 Metro Edmonton, AB Canada 1,034,945 18,805,000 1,747,677 Metro Halifax, NS Canada 372,679 10,755,000 999,535 Metro Kitchener-Waterloo, ON Canada 451,235 4,179,000 388,383 Metro Montréal, QC Canada 3,635,571 71,851,000 6,677,602 Metro Ottawa, ON Canada 1,130,761 34,491,000 3,205,483 Metro Regina, SK Canada 179,246 4,266,000 396,468 Metro Saskatoon, SK Canada 202,340 1,926,000 178,996 CBD Toronto, ON Canada 5,113,149 180,665,000 16,790,428 Metro Vancouver, BC Canada 2,116,581 52,389,000 4,868,866 Metro Victoria, BC Canada 337,411 8,013,000 744,703 Metro Atlanta, GA United States 5,376,285 238,436,000 22,159,480 Metro Bakersfield, CA United States 800,458 8,854,000 822,862 Metro Baltimore, MD United States 2,667,117 68,768,000 6,391,078 Metro Boise, ID United States 599,753 13,691,000 1,272,398 Metro Boston, MA United States 4,522,858 158,352,000 14,716,729 Metro Charleston, SC United States 644,506 10,050,000 934,015 Metro Charlotte, NC United States 1,701,799 73,347,000 6,816,636 Metro Chicago, IL United States 9,569,624 235,827,000 21,917,007 Metro Cincinnati, OH United States 2,155,137 32,129,000 2,985,967 Metro Cleveland, OH United States 112,143 102,406,000 9,517,286 Metro Columbia, SC United States 728,063 9,517,000 884,480 Metro Columbus, OH United States 1,773,120 26,262,000 2,440,706 Metro Dallas/Fort Worth, TX United States 6,300,006 291,266,000 27,069,331 Metro Denver, CO United States 2,506,626 152,081,000 14,133,922 Metro Detroit, MI United States 4,425,110 129,038,000 11,992,379 Metro Fairfield, CA United States 409,900 3,593,000 333,922 Metro Fresno, CA United States 909,153 20,904,000 1,942,751 Metro Ft. Lauderdale/Broward Co., FL United States 1,912,200 54,432,000 5,058,736 Metro Greenville, SC United States 624,715 7,566,000 703,160 Metro Hartford, CT United States 1,190,512 24,418,000 2,269,331 Metro Honolulu, HI United States 905,034 15,706,000 1,459,665 Metro Houston, TX United States 5,728,143 193,748,000 18,006,320 Metro Indianapolis, IN United States 1,715,459 31,438,000 2,921,747 Metro Jacksonville, FL United States 1,313,228 39,217,000 3,644,703 Metro Kansas City, MO-KS United States 2,002,047 47,226,000 4,389,033 Metro Las Vegas, NV United States 1,865,746 40,966,000 3,807,249 Metro Little Rock, AR United States 675,069 14,908,000 1,385,502 Metro Los Angeles, CA United States 12,872,808 197,270,000 18,333,643 Metro Los Angeles Inland Empire, CA United States 12,872,808 22,913,000 2,129,461 Metro Louisville, KY United States 1,244,696 19,310,000 1,794,610 Metro Memphis, TN United States 1,285,732 35,867,000 3,333,364 Metro Miami/Dade County, FL United States 5,414,772 77,261,000 7,180,390 Metro Milwaukee, WI United States 1,549,308 28,429,000 2,642,100 Metro Minneapolis/St. Paul, MN United States 3,229,878 69,767,000 6,483,922 Metro Nashville, TN United States 1,550,733 32,620,000 3,031,599 Metro New Jersey Central United States 2,347,200 104,024,000 9,667,658 Metro New Jersey Northern United States 2,137,600 159,001,000 14,777,045 Metro 8 COLLIERS INTERNATIONAL
GLOBAL OFFICE MARKETS MID-YEAR 2009 EXISTING INVENTORY JUNE 2009 MARKET COUNTRY POPULATION SF SM GEOGRAPHIC AREA NORTH AMERICA continued New York, NY Downtown United States 19,006,798 89,744,000 8,340,520 CBD New York, NY Fairfield Co., CT United States 19,006,798 57,371,000 5,331,877 Metro New York, NY Midtown United States 19,006,798 257,412,000 23,923,048 CBD New York, NY Midtown S. United States 19,006,798 98,339,000 9,139,312 CBD New York, NY Westchester Co. United States 19,006,798 44,229,000 4,110,502 Metro Oakland, CA United States 404,155 32,900,000 3,057,621 Metro Orange County, CA United States 3,029,000 77,207,000 7,175,372 Metro Orlando, FL United States 2,054,574 63,859,000 5,934,851 Metro Philadelphia, PA United States 5,838,471 150,982,000 14,031,784 Metro Phoenix, AZ United States 4,281,899 127,439,000 11,843,773 Metro Pleasanton/Walnut Creek, CA United States 130,314 40,207,000 3,736,710 Metro Portland, OR United States 2,207,462 77,330,000 7,186,803 Metro Raleigh/Durham/Chapel Hill. NC United States 1,088,765 44,797,000 4,163,290 Metro Reno, NV United States 414,784 6,725,000 625,000 Metro Sacramento, CA United States 2,109,832 88,065,000 8,184,480 Metro San Diego County, CA United States 3,001,072 76,956,000 7,152,045 Metro San Francisco, CA United States 4,274,531 82,895,000 7,703,996 CBD San Francisco Peninsula, CA United States 4,274,531 33,478,000 3,111,338 Metro San Jose/Silicon Valley, CA United States 1,819,198 60,264,000 5,600,743 Metro Seattle/Puget Sound, WA United States 3,344,813 141,456,000 13,146,468 Metro St. Louis, MO United States 2,816,710 50,155,000 4,661,245 Metro Stockton/San Joaquin Co., CA United States 672,388 8,476,000 787,732 Metro Tampa, FL United States 2,733,761 80,314,000 7,464,126 Metro Washington, DC United States 4,255,400 115,753,000 10,757,714 CBD Washington, DC N. Virginia United States 4,255,400 150,397,000 13,977,416 Metro Washington, DC Suburban MD United States 4,255,400 74,101,000 6,886,710 Metro West Palm Beach/Palm Beach Co., FL United States 536,521 38,178,000 3,548,141 Metro ASIA PACIFIC Adelaide Australia 1,040,719 13,371,161 1,242,673 CBD Brisbane Australia 1,676,389 21,136,750 1,964,382 CBD Melbourne Australia 3,371,888 41,739,288 3,879,116 CBD Perth Australia 1,256,035 14,656,616 1,362,139 CBD Sydney Australia 3,641,422 51,032,506 4,742,798 CBD Beijing China 16,330,000 47,165,599 4,383,420 Metro Guangzhou China 7,547,467 18,498,915 1,719,230 CBD Hong Kong China 7,200,000 22,665,048 2,106,417 CBD Shanghai China 14,230,992 34,787,317 3,233,022 CBD Bangalore India 4,301,326 54,020,000 5,020,446 Metro Chennai India 4,343,645 41,200,000 3,828,996 Metro Delhi India 9,879,172 45,930,000 4,268,587 Metro Mumbai India 11,978,450 59,939,000 5,570,539 Metro Jakarta Indonesia 8,222,515 42,034,682 3,906,569 CBD Tokyo Central Wards Japan 8,736,474 675,362,160 62,766,000 CBD Auckland New Zealand 1,303,068 14,529,088 1,350,287 CBD Wellington New Zealand 448,959 13,127,200 1,220,000 CBD Singapore Singapore 4,483,900 47,081,299 4,375,585 CBD Seoul South Korea 9,820,171 68,041,904 6,323,597 CBD Taipei Taiwan 2,629,269 50,987,530 4,738,618 CBD LATIN AMERICA Buenos Aires Argentina 14,917,900 39,779,559 3,696,985 CBD Rio de Janeiro Brazil 15,420,375 41,502,504 3,857,110 CBD São Paulo Brazil 10,238,500 60,349,096 5,608,652 CBD Santiago Chile 4,656,690 22,280,517 2,070,680 CBD Bogotá Colombia 7,243,698 12,704,676 1,180,732 CBD Mexico City Mexico 14,007,495 55,007,121 5,112,186 Metro Lima Peru 8,445,211 4,465,540 415,013 Metro COLLIERS INTERNATIONAL 9
GLOBAL OFFICE MARKETS MID-YEAR 2009 UNDER CONSTRUCTION JUNE 2009 MARKET COUNTRY SF SM VACANCY RATE JUNE 2008 (%) VACANCY RATE DEC. 2008 (%) VACANCY RATE JUNE 2009 (%) EUROPE, MIDDLE EAST AND AFRICA (EMEA) Tirana Albania 323,876 30,100 2.0 4.0 2.0 Vienna Austria 1,829,200 170,000 5.0 5.6 5.0 Minsk Belarus 100,000 9,294 17.0 Antwerp Belgium 269,000 25,000 5.5 7.5 8.3 Brussels Belgium 8,608,000 800,000 9.8 10.1 11.0 Sofia Bulgaria 9,296,640 864,000 3.7 9.1 13.5 Zagreb Croatia 834,976 77,600 4.0 4.0 5.3 Prague Czech Republic 5.8 9.0 10.1 Copenhagen Denmark 1,614,000 150,000 4.8 5.4 6.4 Tallinn Estonia 182,920 17,000 5.9 6.9 20.0 Helsinki Finland 1,076,000 100,000 8.0 7.8 8.3 Bordeaux France 5.3 6.1 5.6 Lyon France 1,076,000 100,000 6.5 5.0 9.7 Montpellier France 161,400 15,000 3.5 4.5 6.5 Nantes France 645,600 60,000 Paris France 17,216,000 1,600,000 5.1 5.4 6.4 Strasbourg France 398,120 37,000 6.3 Toulouse France 1,076,000 100,000 3.0 4.2 5.5 Berlin Germany 1,076,000 100,000 7.0 8.1 8.0 Düsseldorf Germany 3,658,400 340,000 8.5 8.4 9.6 Frankfurt Germany 3,840,244 356,900 14.5 14.7 15.9 Hamburg Germany 4,842,000 450,000 6.8 6.5 7.5 Munich Germany 7,854,800 730,000 7.2 7.1 7.3 Stuttgart Germany 143,108 13,300 6.4 6.2 6.2 Athens Greece 322,800 30,000 8.0 10.0 9.0 Budapest Hungary 3,574,009 332,157 12.6 16.8 18.0 Dublin Ireland 860,800 80,000 12.5 15.0 22.0 Tel Aviv Israel 538,000 50,000 4.5 5.5 7.8 Milan Italy 3,873,600 360,000 7.0 6.8 12.0 Rome Italy 860,800 80,000 7.0 10.0 12.0 Riga Latvia 723,072 67,200 9.9 15.0 30.0 Vilnius Lithuania 176,464 16,400 1.8 11.0 20.0 Amsterdam Netherlands 3,010,648 279,800 17.0 17.5 18.0 Eindhoven Netherlands 215,200 20,000 13.0 13.0 13.0 Rotterdam Netherlands 1,226,640 114,000 15.0 13.0 13.5 The Hague Netherlands 1,439,688 133,800 13.0 14.0 14.0 Utrecht Netherlands 457,300 42,500 12.0 12.0 12.0 Oslo Norway 2,108,960 196,000 3.0 7.8 6.6 Warsaw Poland 2,722,280 253,000 2.1 2.9 5.7 Lisbon Portugal 2,004,588 186,300 7.1 6.9 Bucharest Romania 3,228,000 300,000 0.5 14.0 Moscow Russia 40,888,000 3,800,000 3.6 9.5 16.9 Saint Petersburg Russia 4,088,800 380,000 3.5 13.8 20.0 Riyadh Saudi Arabia 2,017,844 187,532 3.0 9.0 17.0 Belgrade Serbia 2,885,294 268,150 9.8 12.0 16.0 Bratislava Slovakia 1,819,731 169,120 8.0 8.8 11.5 Cape Town South Africa 107,600 10,000 5.0 4.6 5.4 Durban South Africa 15.1 14.0 14.7 Johannesburg South Africa 9.9 8.2 8.3 Pretoria South Africa 215,200 20,000 2.5 2.5 4.5 Sandton South Africa 2,072,742 192,634 4.6 5.6 6.6 Madrid Spain 4,304,000 400,000 6.0 6.3 7.2 Stockholm Sweden 602,560 56,000 7.0 7.0 8.0 Geneva Switzerland 753,200 70,000 0.8 1.3 2.0 Zurich Switzerland 1,076,000 100,000 6.5 4.5 4.9 Istanbul Turkey 789,698 73,392 2.4 4.8 12.7 Abu Dhabi United Arab Emirates 9,307,400 865,000 2.0 2.0 15.0 Dubai United Arab Emirates 27,083,243 2,517,030 3.0 3.0 20.0 10 COLLIERS INTERNATIONAL
GLOBAL OFFICE MARKETS MID-YEAR 2009 UNDER CONSTRUCTION JUNE 2009 MARKET COUNTRY SF SM VACANCY RATE JUNE 2008 (%) VACANCY RATE DEC. 2008 (%) VACANCY RATE JUNE 2009 (%) EMEA continued Kyiv Ukraine 2,458,843 228,517 3.0 11.5 21.0 Birmingham United Kingdom 505,800 47,007 15.6 16.3 21.4 Bristol United Kingdom 515,000 47,862 11.2 11.9 17.1 Edinburgh United Kingdom 402,000 37,361 13.1 13.2 13.7 Glasgow United Kingdom 562,199 52,249 7.0 9.8 13.0 London City United Kingdom 5,333,033 495,635 7.2 9.7 13.3 London Docklands United Kingdom 733,500 68,169 4.3 5.2 6.0 London Southbank United Kingdom 978,524 90,941 5.2 2.7 4.0 London West End United Kingdom 2,646,237 245,933 5.4 6.1 9.9 Manchester United Kingdom 472,815 43,942 12.1 15.3 18.9 NORTH AMERICA Calgary, AB Canada 6,459,000 600,279 3.7 4.7 8.9 Edmonton, AB Canada 751,000 69,796 3.8 3.9 7.3 Halifax, NS Canada 150,000 13,941 9.0 9.4 9.7 Kitchener-Waterloo, ON Canada 242,000 22,491 8.6 Montréal, QC Canada 0 0 6.6 6.4 7.1 Ottawa, ON Canada 360,000 33,457 6.5 6.3 6.8 Regina, SK Canada 0 0 1.6 1.5 1.6 Saskatoon, SK Canada 127,000 11,803 5.0 4.8 4.6 Toronto, ON Canada 6,165,000 572,955 5.2 4.6 5.7 Vancouver, BC Canada 870,000 80,855 4.0 4.6 6.4 Victoria, BC Canada 393,000 36,524 3.7 2.5 1.9 Atlanta, GA United States 3,226,000 299,814 14.6 15.0 15.9 Bakersfield, CA United States 48,000 4,461 7.9 9.0 9.7 Baltimore, MD United States 1,183,000 109,944 15.9 16.8 18.6 Boise, ID United States 318,000 29,554 13.6 14.6 17.5 Boston, MA United States 2,008,000 186,617 13.1 14.7 16.9 Charleston, SC United States 0 0 11.5 18.3 19.0 Charlotte, NC United States 2,676,000 248,699 10.1 10.4 12.8 Chicago, IL United States 2,693,000 250,279 16.0 16.5 18.7 Cincinnati, OH United States 1,562,000 145,167 19.2 19.9 20.8 Cleveland, OH United States 223,000 20,725 13.4 12.1 12.2 Columbia, SC United States 190,000 17,658 13.7 15.3 18.4 Columbus, OH United States 337,000 31,320 15.0 13.7 15.4 Dallas/Fort Worth, TX United States 3,210,000 298,327 17.7 16.5 17.2 Denver, CO United States 496,000 46,097 12.3 15.8 14.3 Detroit, MI United States 197,000 18,309 17.9 17.6 18.0 Fairfield, CA United States 0 0 25.5 24.4 26.0 Fresno, CA United States 11,000 1,022 12.6 12.5 13.3 Ft. Lauderdale/Broward Co., FL United States 326,000 30,297 12.1 12.9 13.5 Greenville, SC United States 0 0 18.9 18.2 23.1 Hartford, CT United States 0 0 17.0 17.1 18.5 Honolulu, HI United States 0 0 5.5 8.6 10.1 Houston, TX United States 4,326,000 402,045 12.5 12.8 15.6 Indianapolis, IN United States 301,000 27,974 17.0 18.7 19.9 Jacksonville, FL United States 0 0 12.5 13.2 14.3 Kansas City, MO-KS United States 521,000 48,420 16.1 17.1 18.2 Las Vegas, NV United States 324,000 30,112 17.6 21.0 23.6 Little Rock, AR United States 67,000 6,227 12.3 12.8 10.1 Los Angeles, CA United States 1,667,000 154,926 11.8 12.9 15.4 Los Angeles Inland Empire, CA United States 455,000 42,286 16.1 18.6 23.5 Louisville, KY United States 0 0 11.0 11.9 12.3 Memphis, TN United States 152,000 14,126 13.3 12.8 13.5 Miami/Dade County, FL United States 3,466,000 322,119 11.6 13.0 14.5 Milwaukee, WI United States 0 0 15.4 16.8 17.5 Minneapolis/St. Paul, MN United States 430,000 39,963 17.4 17.4 19.2 Nashville, TN United States 604,000 56,134 10.4 11.6 14.4 New Jersey Central United States 463,000 43,030 15.6 15.5 17.2 New Jersey Northern United States 158,000 14,684 11.3 11.3 11.2 COLLIERS INTERNATIONAL 11
GLOBAL OFFICE MARKETS MID-YEAR 2009 UNDER CONSTRUCTION JUNE 2009 MARKET COUNTRY SF SM VACANCY RATE JUNE 2008 (%) VACANCY RATE DEC. 2008 (%) VACANCY RATE JUNE 2009 (%) NORTH AMERICA continued New York, NY Downtown United States 4,600,000 427,509 8.6 10.2 10.6 New York, NY Fairfield Co., CT United States 975,000 90,613 15.2 16.4 18.5 New York, NY Midtown United States 1,438,000 133,643 8.2 10.2 13.7 New York, NY Midtown S. United States 315,000 29,275 10.0 11.4 13.8 New York, NY Westchester Co. United States 0 0 16.6 16.0 16.4 Oakland, CA United States 62,000 5,762 18.1 17.5 14.6 Orange County, CA United States 81,000 7,528 18.1 18.6 20.2 Orlando, FL United States 827,000 76,859 12.2 13.6 15.8 Philadelphia, PA United States 1,261,000 117,193 12.9 13.3 14.4 Phoenix, AZ United States 2,393,000 222,398 16.2 19.1 21.4 Pleasanton/Walnut Creek, CA United States 0 0 13.2 15.9 17.7 Portland, OR United States 639,000 59,387 9.8 9.6 10.1 Raleigh/Durham/Chapel Hill. NC United States 766,000 71,190 15.7 16.3 20.1 Reno, NV United States 0 0 19.2 19.1 21.2 Sacramento, CA United States 737,000 68,494 12.9 13.7 15.6 San Diego County, CA United States 782,000 72,677 14.9 17.1 17.9 San Francisco, CA United States 418,000 38,848 10.4 12.6 14.1 San Francisco Peninsula, CA United States 0 0 13.6 16.1 19.9 San Jose/Silicon Valley, CA United States 1,736,000 161,338 12.2 14.5 19.8 Seattle/Puget Sound, WA United States 5,043,000 468,680 10.0 11.8 11.2 St. Louis, MO United States 1,164,000 108,178 11.8 11.7 12.1 Stockton/San Joaquin Co., CA United States 30,000 2,788 18.4 18.6 18.8 Tampa, FL United States 267,000 24,814 12.4 13.8 14.8 Washington, DC United States 6,928,000 643,866 7.9 7.8 9.6 Washington, DC N. Virginia United States 1,542,000 143,309 10.9 12.9 10.6 Washington, DC Suburban MD United States 1,245,000 115,706 10.8 11.0 11.6 West Palm Beach/Palm Beach Co., FL United States 81,000 7,528 16.9 18.6 20.1 ASIA PACIFIC Adelaide Australia 538,000 50,000 3.9 3.4 4.8 Brisbane Australia 1,961,322 182,279 1.2 0.7 10.7 Melbourne Australia 2,551,734 237,150 3.0 4.7 4.8 Perth Australia 2,575,514 239,360 0.3 1.3 8.0 Sydney Australia 2,061,013 191,544 4.3 5.4 7.7 Beijing China 11,509,671 1,069,672 15.0 16.5 19.2 Guangzhou China 35,509,657 3,300,154 22.3 22.5 24.4 Hong Kong China 363,657 33,797 1.5 4.0 5.1 Shanghai China 29,279,768 2,721,168 5.5 10.3 14.1 Bangalore India 4,736,000 440,149 16.0 18.0 19.0 Chennai India 4,180,000 388,476 13.0 15.0 22.5 Delhi India 4,650,000 432,156 12.0 13.5 17.0 Mumbai India 9,041,000 840,242 12.0 14.0 15.0 Jakarta Indonesia 7,823,101 727,054 11.2 10.3 11.7 Tokyo Central Wards Japan 11,459,400 1,065,000 3.5 4.0 6.5 Auckland New Zealand 753,200 70,000 7.0 7.7 8.4 Wellington New Zealand 936,120 87,000 7.6 5.0 6.0 Singapore Singapore 10,021,191 931,337 7.5 8.9 10.6 Seoul South Korea 7,761,522 721,331 0.5 1.0 3.1 Taipei Taiwan 1,700,865 158,073 6.3 7.0 10.2 LATIN AMERICA Buenos Aires Argentina 575,972 53,529 1.5 2.9 6.2 Rio de Janeiro Brazil 3,186,090 296,105 0.8 1.2 0.6 São Paulo Brazil 9,211,873 856,122 2.7 4.0 5.7 Santiago Chile 3,660,229 340,170 0.5 0.7 3.8 Bogotá Colombia 7,676,367 713,417 1.3 3.2 7.3 Mexico City Mexico 9,507,385 883,586 8.5 6.1 5.1 Lima Peru 1,757,538 163,340 1.1 1.0 2.7 12 COLLIERS INTERNATIONAL
GLOBAL OFFICE MARKETS LOCAL MEASURE/CURRENCY CBD RENTS MID-YEAR 2009 MARKET COUNTRY MEASURE QUOTED TIME CURRENCY UNIT PERIOD EXCHANGE RATE (USD) JUN. 30, 2009 NET RENT GROSS RENT ANNUAL CHG. (%) TOP TOP EUROPE, MIDDLE EAST AND AFRICA (EMEA) Tirana Albania EUR SM Month 0.71 17.00 20.00-9.1 22.00 25.00 Vienna Austria EUR SM Month 0.71 18.00 21.00 0.0 24.00 28.00 Minsk Belarus EUR SM Month 0.71 32.00 40.00 38.00 47.00 Antwerp Belgium EUR SM Year 0.71 125.00 160.00 0.0 145.00 185.00 Brussels Belgium EUR SM Year 0.71 200.00 275.00 0.0 260.00 335.00 Sofia Bulgaria EUR SM Month 0.71 17.00 20.00-7.0 30.00 35.00 Zagreb Croatia EUR SM Month 0.71 16.00 22.00-2.2 17.00 24.00 Prague Czech Republic EUR SM Month 0.71 19.00 23.00 2.2 22.00 26.00 Copenhagen Denmark DKK SM Year 5.30 1,600.00 1,900.00 8.6 1,800.00 2,100.00 Tallinn Estonia EUR SM Month 0.71 13.50 16.00-27.9 17.00 19.00 Helsinki Finland EUR SM Month 0.71 22.00 25.00-3.8 25.00 29.00 Bordeaux France EUR SM Year 0.71 150.00 174.00 Lyon France EUR SM Year 0.71 172.00 281.00 Montpellier France EUR SM Year 0.71 135.00 150.00 120.00 170.00 Nantes France EUR SM Year 0.71 165.00 172.00 Paris France EUR SM Year 0.71 550.00 625.00 4.2 660.00 750.00 Strasbourg France EUR SM Year 0.71 165.00 200.00 Toulouse France EUR SM Year 0.71 180.00 200.00 Berlin Germany EUR SM Month 0.71 21.50 25.50-20.6 25.00 30.00 Düsseldorf Germany EUR SM Month 0.71 17.00 21.00 11.1 23.00 27.00 Frankfurt Germany EUR SM Month 0.71 32.00 38.00 35.7 38.00 45.20 Hamburg Germany EUR SM Month 0.71 23.00 26.00-1.9 25.00 28.00 Munich Germany EUR SM Month 0.71 27.50 31.50 2.9 35.00 39.00 Stuttgart Germany EUR SM Month 0.71 15.00 17.85-17.0 18.50 22.00 Athens Greece EUR SM Month 0.71 17.00 19.00-22.4 22.00 24.00 Budapest Hungary EUR SM Month 0.71 12.50 17.00-5.3 19.00 24.00 Dublin Ireland EUR SM Year 0.71 430.00 570.00-13.1 540.00 680.00 Tel Aviv Israel ILS SM Month 3.94 76.00 111.00-12.6 85.00 120.00 Milan Italy EUR SM Year 0.71 480.00 520.00 0.0 600.00 660.00 Rome Italy EUR SM Year 0.71 350.00 380.00-1.3 450.00 500.00 Riga Latvia EUR SM Month 0.71 10.00 12.10-48.5 15.00 18.15 Vilnius Lithuania EUR SM Month 0.71 11.60 14.50-34.7 14.50 17.40 Amsterdam Netherlands EUR SM Year 0.71 205.00 225.00 0.0 243.00 270.00 Eindhoven Netherlands EUR SM Year 0.71 135.00 150.00 0.0 158.00 175.00 Rotterdam Netherlands EUR SM Year 0.71 149.00 165.00 0.0 167.00 185.00 The Hague Netherlands EUR SM Year 0.71 144.00 160.00 0.0 203.00 225.00 Utrecht Netherlands EUR SM Year 0.71 153.00 170.00 0.0 212.00 235.00 Oslo Norway NOK SM Year 6.45 2,424.00 2,624.00-20.5 4,550.00 4,750.00 Warsaw Poland EUR SM Month 0.71 22.50 27.50-16.7 26.00 31.00 Lisbon Portugal EUR SM Month 0.71 16.50 18.50 18.00 21.00 Bucharest Romania EUR SM Month 0.71 19.00 24.00 Moscow Russia USD SM Year 1.00 700.00 970.00-46.1 900.00 1,200.00 Saint Petersburg Russia USD SM Year 1.00 450.00 630.00-35.6 650.00 860.00 Riyadh Saudi Arabia SAR SM Year 3.75 1,444.00 1,531.00 2,360.00 2,525.00 Belgrade Serbia EUR SM Month 0.71 15.50 18.50-15.1 16.50 19.50 Bratislava Slovakia EUR SM Month 0.71 12.00 15.00-11.8 18.00 21.00 Cape Town South Africa ZAR SM Month 7.88 77.00 95.00 0.0 102.00 120.00 Durban South Africa ZAR SM Month 7.88 85.00 90.00 60.7 95.00 100.00 Johannesburg South Africa ZAR SM Month 7.88 53.00 75.00 50.0 68.00 90.00 Pretoria South Africa ZAR SM Month 7.88 90.00 108.00 92.9 110.00 127.00 Sandton South Africa ZAR SM Month 7.88 93.00 120.00 1.7 123.00 150.00 Madrid Spain EUR SM Month 0.71 27.00 28.00-25.3 33.00 35.00 Stockholm Sweden SEK SM Year 7.75 4,100.00 4,600.00-4.2 4,400.00 4,900.00 Geneva Switzerland CHF SM Year 1.09 590.00 630.00-1.6 1,000.00 1,100.00 Zurich Switzerland CHF SM Year 1.09 480.00 510.00 0.0 920.00 950.00 Istanbul Turkey USD SM Month 1.00 28.10 34.00-7.6 56.50 62.50 Abu Dhabi United Arab Emirates AED SM Year 3.67 2,400.00 2,650.00-11.7 3,200.00 3,550.00 Dubai United Arab Emirates AED SM Year 3.67 2,700.00 3,000.00-21.1 3,770.00 4,150.00 COLLIERS INTERNATIONAL 13
GLOBAL OFFICE MARKETS LOCAL MEASURE/CURRENCY CBD RENTS MID-YEAR 2009 MARKET COUNTRY MEASURE QUOTED TIME CURRENCY UNIT PERIOD EXCHANGE RATE (USD) JUN. 30, 2009 EMEA continued Kyiv Ukraine USD SM Month 1.00 32.00 38.00-67.2 35.00 41.00 Birmingham United Kingdom GBP SF Year 0.61 24.00 37.00-1.3 32.00 47.00 Bristol United Kingdom GBP SF Year 0.61 24.00 36.00 0.0 27.50 40.50 Edinburgh United Kingdom GBP SF Year 0.61 23.00 35.00-2.8 28.50 40.00 Glasgow United Kingdom GBP SF Year 0.61 23.00 34.00 0.0 29.00 40.00 London City United Kingdom GBP SF Year 0.61 39.00 55.00-24.7 48.00 64.00 London Docklands United Kingdom GBP SF Year 0.61 25.00 41.00-25.5 30.00 46.00 London Southbank United Kingdom GBP SF Year 0.61 31.00 47.00 39.00 55.00 London West End United Kingdom GBP SF Year 0.61 60.00 76.00-26.9 75.00 91.00 Manchester United Kingdom GBP SF Year 0.61 22.00 34.00 0.0 28.50 42.50 NORTH AMERICA Calgary, AB Canada CAD SF Month 1.16 30.00 48.00-17.9 35.00 53.00 Edmonton, AB Canada CAD SF Month 1.16 32.16 46.80-0.4 39.19 53.83 Halifax, NS Canada CAD SF Month 1.16 16.11 31.50 4.0 19.50 34.89 Kitchener-Waterloo, ON Canada CAD SF Month 1.16 13.40 27.30 14.50 28.40 Montréal, QC Canada CAD SF Month 1.16 12.55 31.10 5.1 35.17 53.72 Ottawa, ON Canada CAD SF Month 1.16 25.23 48.50 8.0 29.94 53.21 Regina, SK Canada CAD SF Month 1.16 21.36 34.80 5.5 25.79 39.23 Saskatoon, SK Canada CAD SF Month 1.16 20.00 30.00-0.3 20.00 30.00 Toronto, ON Canada CAD SF Month 1.16 25.79 53.60 2.7 42.58 70.39 Vancouver, BC Canada CAD SF Month 1.16 26.00 44.00-4.3 39.00 57.00 Victoria, BC Canada CAD SF Month 1.16 23.00 37.00 2.8 31.00 45.00 Atlanta, GA United States USD SF Month 1.00 9.75 21.90-1.9 27.85 40.00 Bakersfield, CA United States USD SF Month 1.00 9.44 17.40 0.0 13.04 21.00 Baltimore, MD United States USD SF Month 1.00 12.86 25.00 4.2 20.10 32.24 Boise, ID United States USD SF Month 1.00 14.50 20.50 3.3 16.00 22.00 Boston, MA United States USD SF Month 1.00 32.10 50.10-19.5 52.00 70.00 Charleston, SC United States USD SF Month 1.00 20.00 29.00 3.1 23.00 32.00 Charlotte, NC United States USD SF Month 1.00 20.30 30.30-8.4 25.00 35.00 Chicago, IL United States USD SF Month 1.00 16.00 35.50-15.5 33.50 53.00 Cincinnati, OH United States USD SF Month 1.00 13.66 23.50-0.1 20.16 30.00 Cleveland, OH United States USD SF Month 1.00 12.16 21.00 6.0 20.16 29.00 Columbia, SC United States USD SF Month 1.00 12.40 19.80-2.1 14.60 22.00 Columbus, OH United States USD SF Month 1.00 15.08 23.10 15.4 17.71 25.73 Dallas/Fort Worth, TX United States USD SF Month 1.00 14.10 25.50-1.9 24.60 36.00 Denver, CO United States USD SF Month 1.00 14.15 28.00-17.6 21.15 35.00 Detroit, MI United States USD SF Month 1.00 7.60 22.60-1.8 10.90 25.90 Fresno, CA United States USD SF Month 1.00 17.20 25.20-6.7 22.00 30.00 Ft. Lauderdale/Broward Co., FL United States USD SF Month 1.00 13.32 32.00 0.5 27.32 46.00 Greenville, SC United States USD SF Month 1.00 12.50 21.50 4.8 16.00 25.00 Hartford, CT United States USD SF Month 1.00 11.50 23.50-1.4 13.00 25.00 Honolulu, HI United States USD SF Month 1.00 20.21 36.50-0.7 25.11 41.40 Houston, TX United States USD SF Month 1.00 21.10 38.80 1.6 27.57 45.27 Indianapolis, IN United States USD SF Month 1.00 10.72 20.30 3.6 16.42 26.00 Jacksonville, FL United States USD SF Month 1.00 11.80 21.00 5.0 14.80 24.00 Kansas City, MO-KS United States USD SF Month 1.00 11.83 20.20-2.1 18.13 26.50 Las Vegas, NV United States USD SF Month 1.00 27.30 39.30-0.9 33.00 45.00 Little Rock, AR United States USD SF Month 1.00 9.80 16.40 4.1 13.15 19.75 Los Angeles, CA United States USD SF Month 1.00 21.18 39.80 0.5 24.70 43.32 Louisville, KY United States USD SF Month 1.00 21.10 8.2 23.50 Memphis, TN United States USD SF Month 1.00 9.00 16.90-0.6 15.10 23.00 Miami/Dade County, FL United States USD SF Month 1.00 22.96 43.50 1.1 25.96 46.50 Milwaukee, WI United States USD SF Month 1.00 11.00 22.00 0.0 15.00 26.00 Minneapolis/St. Paul, MN United States USD SF Month 1.00 13.06 26.50 0.6 29.06 42.50 Nashville, TN United States USD SF Month 1.00 14.55 22.30 11.0 20.75 28.50 NET RENT GROSS RENT ANNUAL CHG. (%) TOP TOP 14 COLLIERS INTERNATIONAL