1. Q1 2012 | OFFICE
NORTH AMERICA
HIGHLIGHTS
Office Demand Steady on Strength of
ICEE Industries
K.C. CONWAY EMD | Market Analytics
MARKET INDICATORS
Relative to prior period The Bottom Line
• A national rebalancing of business growth from FIRE (Finance, Insurance and Real Estate) to ICEE
Q1 Q2
2012 2012* (Intellectual Capital, Energy and Education) has shifted office demand to cities with ICEE industry
concentrations.
VACANCY • An oncoming wave of maturing debt will soon change the volume and tenor of sales transactions.
• National office absorption remains steady, but a full robust recovery is still in the future.
NET ABSORPTION
• ffice construction is still low, with only 9.4 MSF of new supply delivered in Q1 2012.
O
CONSTRUCTION
Measured Rebalancing
RENTAL RATE We often use the term “measured rebalancing” to describe the current state of the U.S. office property
*Projected market. This refers to the long process of working through an oversupply of office space according to
materially different demand drivers. The market must recalculate the amount of office space required,
and recalibrate in areas that space demand has shifted.
NORTH AMERICAN OFFICE VACANCY, INVENTORY AND ABSORPTION—Q1
U.S. OFFICE MARKET
SUMMARY STATISTICS, Q1 2012 6.7% vac.
Vacancy Rate: 14.95%
Change from Q4 2011: –0.09%
Absorption:
8.1 Million Square Feet 13.5% vac.
15.3% vac.
New Construction: 15.3% vac.
Absorption Per Market
16.3% vac.
7.5 Million Square Feet Q4 '11 - Q1 '12
1,200,000
Under Construction: 120,000
38 Million Square Feet -120,000
-1,200,000
Asking Rents Per Square Foot 15.3% vac.
(Change from Q4 2011): 15.3% vac.
Sq. Ft. By Region
Downtown Class A: $40.96 (+0.56%)
4 million
2.00000000e+009
2 million
1.00000000e+009
Suburban Class A: $26.14 (+1.07%) 400,000
2.00000000e+008
Total_OffSF-Vacant_OffSF
Occupied Sq. Ft.
Vacant_OffSF
Vacant Sq. Ft.
WWW.COLLIERS.COM
2. HIGHLIGHTS | Q1 2012 | OFFICE | NORTH AMERICA
ICEE Markets on Fire FIRE Markets on Ice
• Houston and Calgary were the only two markets with over 1 million • Atlanta and Los Angeles were the only two metros with inventories
square feet (MSF) of absorption in Q1 2012. over 200 million SF and vacancies over 17.5 percent.
• Toronto boasted the lowest vacancy (5.3 percent) of any market with • Los Angeles and Orange County each had vacancy rates over 18
over 10 MSF of inventory. percent.
• Seattle ranks 5th highest in absorption, with a vacancy rate below • Central New Jersey showed the worst absorption of the top 20
13 percent. office markets.
• Silicon Valley was in the top 10 US markets for decreased vacancy • Chicago saw negative absorption and 15 percent vacancy.
rate. • West Palm Beach experienced negative absorption and 19.5 percent
• Baltimore and Washington DC each boast a vacancy rate below 15 vacancy.
percent. • Midtown South Manhattan saw negative absorption in Q1 2012.
• Raleigh boasts a vacancy rate below 12.5 percent and saw positive • Phoenix suffered from negative absorption and a vacancy rate over
absorption for the quarter. 22 percent.
Prior to the housing and financial crises, office demand was aligned with Rents and Absorption Showed Improvement over Last Year The U.S. has
growth in financial services and the over-heated housing markets. New seen a sustained modest improvement in vacancy and absorption in recent
bank charters, growing numbers of subprime lenders and unparalleled quarters. However, a more robust recovery in office demand—such as is
demand for residential and commercial mortgage-backed securities all occurring in multifamily and industrial real estate—remains elusive.
propelled a need for more office space in markets with high concentrations Uncertainties in the economy are keeping businesses from hiring and leas-
of these industries, such as Chicago, Los Angeles and New York. As the ing offices.
subsequent recession and recovery has unfolded, financial and real estate
businesses are no longer growing in the way they once were. Now, a new For Q1 2012, approximately 14.9 percent of the inventory that Colliers
set of demand drivers has taken hold. tracks was vacant; an improvement of 8 basis points from year-end 2011.
With only 7.5 MSF of new supply delivered to these 81 markets in Q1, net
ICEE Markets on Fire One of the key differences between improving and absorption was a positive 8.1 MSF. With this amount of vacant space, and
lagging office markets is the type of industry concentrations each has. anemic office-related job growth, office rents improved just marginally in
Office space demand is now driven by tech industries in ‘Knowledge the 36 CBD markets that reported rent increases. The other 36 CBD mar-
Gateway’ markets, such as Austin, Boston and Silicon Valley; and energy kets registered flat or declining rents. Thirty-two Suburban markets re-
corridor markets extending north from Houston into Canada. As some ported rent growth, while 37 suburban markets reported flat or declining
manufacturing returns to the U.S. from Asia and India, office demand is quarter-over-quarter rents. Class A CBD rents improved from $40.73 per
also growing in inland manufacturing markets in the Midwest and port square foot to $40.96 per square foot. Class A Suburban rents increased
markets along the Gulf Coast, South Florida and the Mid-Atlantic States— from $25.86 to $26.14 per square foot.
especially Miami, Virginia and North Carolina.
We have chosen two categories to distinguish between leading and lagging
industries: FIRE and ICEE.
• Finance,Insurance and Real Estate (FIRE) markets are seeing stalled SELECT INTELLECTUAL CAPITAL, ENERGY AND EDUCATION (ICEE) CITIES
growth in demand for office space. Calgary
• IntellectualCapital, Energy and Education (ICEE) markets feature con- Seattle
centrations in a combination of technology, higher education and energy
industries. These growing industries are pushing up demand for office Toronto
space in select markets, especially in Class A buildings.
Office demand has shifted away from FIRE and toward ICEE, thereby fa- Silicon Valley
Baltimore
Denver
voring cities with higher concentrations of ICEE industries. Washington
Raleigh
“Office space demand is now driven by tech
industries in ‘Knowledge Gateway’ markets, Austin
such as Austin, Boston and Silicon Valley; and
Houston
energy corridor markets extending north from
Houston into Canada.”
P. 2 | COLLIERS INTERNATIONAL
3. HIGHLIGHTS | Q1 2012 | OFFICE | NORTH AMERICA
US GDP PRE-2008/2009 FINANCIAL CRISIS THROUGH Q1 2012
“In many cases, the shift in office demand 6
drivers from FIRE to ICEE has been the engine 4
2
3.6
3
3.8 3.9 3.8
3
of growth for these stand-out markets.”
2.5 2.3
0.5 1.7 1.3 1.7 0.4 1.8 1.8
1.3
0
-1.8 -0.7
-2
-3.7
-4
Slow Recovery Makes Businesses Hesitate to Expand Owners and inves-
-6 -6.7
tors held out the hope at the onset of 2012 that the rebound in multifamily
-8
and industrial real estate demand would soon spill over to the office sector. -8.9
-10
This hope was rooted in a number of promising economic metrics: in
Q2
Q3
Q4
Q1 2008
Q2
Q3
Q4
Q1 2009
Q2
Q3
Q4
Q1 2010
Q2
Q3
Q4
Q1 2011
Q2
Q3
Q4
Q1 2012
Q1 2007
March, it was confirmed that GDP expanded during the final quarter of 2011
by 3 percent; the unemployment rate declined to 8.3 percent; and the labor
market delivered 227,000 new jobs in February. However, the start of
2012 now seems eerily similar to that of 2011, which began with positive
economic indicators that fizzled out as the year progressed. Now a more
of the 60 markets that contain less than 100 MSF of inventory saw nega-
robust economic recovery remains elusive amidst uncertainties stemming
tive absorption. This trend suggests that, despite the strategy of institu-
from upcoming elections and concerns about the impact of the European
tional capital which pursues properties in core markets with at least 100
Crisis on the U.S. economy. Businesses and investors are anxious about
MSF of office inventory, investors should begin to look beyond the 7/11s
making long-term investment decisions.
(the core 11 markets in 7 states). Office demand in secondary markets
such as Raleigh and the Silicon Valley is being driven by ICEE, but beyond
Pockets of Strength While a robust recovery remains elusive at the national
these markets much of the demand is being fueled by a more traditional
level, macro market averages tell just a part of the office property sector
set of drivers. A boom in agriculture and manufacturing growth is stimu-
story. A more detailed look shows a market split into areas of strong and
lating some office demand in markets such as Boise, Charlotte, Grand
weak demand. In many cases, the shift in office demand drivers from FIRE to
Rapids, Indianapolis, Louisville and Nashville.
ICEE has been the engine of growth for these stand-out markets.
• The largest markets are experiencing more robust office demand, with
ICEE as a major driver. More than half of the total net absorption in Q1 High Office CMBS Delinquencies Set the Stage The volume and tenor of
came from the 21 largest markets. Approximately 2.6 MSF of this net ab- transaction activity is set to change, as the wave of maturing office debt
sorption (24 percent of 10.8 MSF North American total.) came from ICEE creeps into focus. The news remains disconcerting. The delinquency rate
markets ranked among the 21 largest metros. for U.S. commercial real estate loans in CMBS increased another 12 basis
• In terms of occupancy rates, the largest U.S. markets are in line with the
points in April to 9.3 percent, as reported by TREPP. The value of delin-
overall U.S. rate. The 10 largest markets (Midtown Manhattan, Midtown quent loans is now $58.1 billion. The office property delinquency rate was
Manhattan South, Washington, D.C., Chicago, Dallas, Atlanta, Los Angeles, up 85 basis points, setting a new all-time high of 10.23 percent.
Houston, Boston and Philadelphia) have a vacancy rate of around 15
percent.
• The next ten largest markets show a lower vacancy rate, thanks to the
support of three ICEE markets. The metros ranked 11th to 2nd in size
(Toronto, Denver, Northern New Jersey, Detroit, Phoenix, Cleveland, Seattle,
Pittsburgh, Minneapolis, Central New Jersey, Charlotte and Baltimore) have DELINQUENCY RATES BY PROPERTY TYPE
an average vacancy rate of 14.1 percent, 85 basis points lower than the aver-
APR - 12 MAR - 12 FEB - 12 3 MO 6 MO 1 YR
age for the U.S.
• The highest vacancies are concentrated in California and the Northeast. Industrial 12.36 12.54 12.37 12.14 11.59 10.76
Approximately one-third of the markets have an average vacancy rate above
15 percent. Of these 27 markets, seven are located in California and five are Lodging 10.55 10.63 11.05 12.09 14.12 15.45
located in the Northeast, where FIRE is the primary office demand driver.
• ICEE drives much of major market absorption. Only two markets had Multifamily 15.18 15.39 14.65 15.39 16.73 16.77
in excess of 1 MSF of net absorption, and both were ICEE markets:
Houston and Calgary. Only eight metros had net office absorption in ex- Office 10.23 9.41 9.04 8.90 8.95 7.20
cess of 500,000 square feet (Calgary, Houston, Toronto, Seattle, Atlanta,
Retail 7.98 8.24 8.00 7.88 7.61 8.15
NY – Midtown Manhattan, NY – Downtown Manhattan, and Philadelphia),
and half of these were ICEE markets. Overall 9.80 9.68 9.37 9.52 9.77 9.65
• Investors
should look beyond the core, as secondary markets show
Source: Trepp
some strength, driven by ICEE, manufacturing and agriculture. Only 19
P. 3 | COLLIERS INTERNATIONAL
4. HIGHLIGHTS | Q1 2012 | OFFICE | NORTH AMERICA
Stabilized and Distressed Sales Set Two Very Different Pricing Benchmarks The ICEE markets
Excluding renewals, of the leases signed
will continue to attract a disproportionate share of investment capital slated for office properties this quarter in your CBD/downtown,
in 2012, thanks to positive absorption, declining vacancy and strong office-related job growth. But did most tenants:
unlike the distinction in demand between FIRE and ICEE, there is another story of extreme bifur-
cation in transaction volume and pricing: the split between the highly valued stabilized assets in
core markets and the distressed and overleveraged properties working their way through debt
Expand
restructuring. 45%
Contract
49%
Institutional capital is still focused on stabilized assets in core markets, regardless of the office
Holding Steady
demand drivers, with transaction activity concentrated in a few major markets; New York, 6%
Washington, D.C., Chicago, Boston, Houston, Los Angeles, San Francisco, Seattle, Dallas, Atlanta
and Denver were all markets with more than $1.5 billion in office transaction activity in 2011 and
they continue to lead investment activity in Q1 2012, according to data from Real Capital Analytics.
Much of the institutional investment in Atlanta and Chicago represents opportunistic distressed
asset investment by those wishing to capitalize on overleveraged CMBS office debt maturities and
defaults. The remaining eight markets represent the core financial service, technology and energy What was the trend for Free Rent
(in Months) offered by CBD Landlords
markets. Institutional capital believes these eight markets have the most compelling metrics and
this quarter?
yield for investment objectives.
Two recent office transactions illustrate the pricing dichotomy between stabilized properties in Less More
core markets and distressed or overleveraged properties. 12% 6%
• $550 per square foot for Seattle’s 872,000-square-foot Russell Investment Center Same
• $101
82%
per square foot for Minneapolis’ 1.1-million-square-foot Fifth Street Towers office complex
The Russell Investment Center in Seattle, built in 2006, was originally the corporate headquarters
of Washington Mutual. As fallout of the financial crisis, the property was left without a tenant. In
2009, Northwest Mutual paid $132 per square foot for this mostly vacant CBD Seattle office build-
ing. Since then, the property attracted investment-grade tenants leasing up 95% of its available
What was the trend for Tenant
space. In three years, Northwest Mutual more than quadrupled its investment. This transaction
Improvement Allowances ($ per SF)
shows the high price that institutional capital will pay for a prime property in a core market—sales offered by Landlords this quarter?
above $500 per square foot are no longer atypical in Boston, Houston and Seattle—where there is
certainty of cash-flow stability. This kind of turnaround story is what investors in the over-lever-
aged Atlanta, Charlotte, Chicago and Phoenix markets are anticipating. Less More
12% 3%
The Minneapolis Fifth Street Towers office complex exemplifies a very different type of transaction.
This 1.1 MSF 1985 vintage property was purchased in a foreclosure auction sale with an occupancy Same
that had fallen to 60 percent. The $101 per square price shows the relatively low ceiling that in- 85%
vestment capital is willing to pay for over-leveraged and distressed office assets requiring both
further funds and considerable management expertise in order to re-stabilize.
U.S. OFFICE MARKET Q1 2010 – Q1 2012
20 18.00
Excluding renewals, of the leases
16.32 16.29 16.26 16.11 15.57 15.36 15.14 15.03 14.95
16.0 signed this quarter in your Suburban
15 office market, did most tenants:
14.0
10 12.0
Million Square Feet
10.0
Vacancy (%)
5 Holding Steady
8.0
0 6.0 8%
Absorption dipped
slightly below Contract
4.0 Expand 44%
Q1 2010
Q2 2010
Q3 2010
Q4 2010
Q1 2011
Q2 2011
Q3 2011
Q4 2011
Q1 2012
-5 expectations in the 48%
2.0 beginning of 2012.
-10 We attribute much
of this to the
Absorption Completions Vacancy post-holiday slump
in leasing activity.
P. 4 | COLLIERS INTERNATIONAL
5. HIGHLIGHTS | Q1 2012 | OFFICE | NORTH AMERICA
Rents and Office Construction at a Crawl, but ICEE Markets Show Signs publisher SAS Institute announced in March that it will build another
of Life Only 9.5 MSF of new supply was delivered in Q1 2012, just 0.2 213,000 square feet on its Cary campus later this year. SAS was not able
percent of the total 6.3 billion square feet of existing office inventory. The to find existing expansion space. This is not the first new construction for
lack of significant office construction has helped to bolster current office SAS. In 2011, it opened a 287,000 square foot building, and added 367 jobs.
demand and will intensify future demand when it returns. Stabilized office When this latest building is completed in late 2014, SAS will add another
markets with vacancy rates of 10–15 percent and 1.5–2.0 percent job 650 office workers to its existing 5,000 Cary, NC, employees.
growth require existing inventory to expand by approximately 2.0 percent to
maintain market equilibrium and keep rents from rising. At such a growth This same kind of growth and demand for office space is occurring in other
rate, the nation would require 122.8 MSF—more than eight times the cur- technology and energy markets, such as Austin, Baltimore, Denver, San
rent new supply. With so little new supply in the pipeline, the stage is set for Jose/Silicon Valley, Seattle and Portland.
continued improvement in office vacancy, especially in the ICEE markets.
• The
markets that saw the most new deliveries of space in Q1 2012 were “The market must recalculate the amount of
New York, Calgary, Washington, D.C., Houston, Philadelphia, Baltimore and
Louisville.
office space required, and recalibrate in areas
that space demand has shifted.”
In some cases, the absence of available properties in technology and energy
markets is stimulating new construction activity. This has caused an uptick
in Houston’s office construction, where 915,000 square feet of new supply
was delivered in Q1 2012. It has also spurred unexpected construction in
some smaller markets. In the Raleigh market, for example, software
Downtown Houston, TX; Source: Thinkstock.com
COLLIERS INTERNATIONAL | P. 5
6. HIGHLIGHTS | Q1 2012 | OFFICE | NORTH AMERICA
UNITED STATES | DOWNTOWN OFFICE | ALL INVENTORY
EXISTING NEW SUPPLY UNDER VACANCY VACANCY ABSORPTION
INVENTORY (SF) Q1 2012 CONSTRUCTION RATE (%) RATE (%) Q1 2012
MARKET MAR. 31, 2012 (SF) (SF) DEC. 31, 2011 MAR. 31, 2012 (SF)
NORTHEAST
Baltimore, MD 29,115,000 34,000 - 15.3 15.3 28,000
Boston, MA 61,047,000 - 1,810,000 15.8 15.4 153,000
Hartford, CT 9,715,000 - - 24.3 25.1 (35,000)
New York, NY—Downtown 110,942,000 2,845,000 5,200,000 15.9 16.0 707,000
Manhattan
New York, NY—Midtown 227,532,000 740,000 1,052,000 11.9 11.7 766,000
Manhattan
New York, NY—Midtown 165,369,000 35,000 850,000 8.7 8.6 (53,000)
South Manhattan
Philadelphia, PA 43,114,000 - - 11.4 11.6 (93,000)
Pittsburgh, PA 32,234,000 - - 10.3 9.8 (50,000)
Stamford, CT 19,273,000 - - 18.8 18.7 162,000
Washington DC 140,860,000 - 2,107,000 10.5 10.3 285,000
White Plains, NY 7,800,000 - - 14.3 14.8 (26,000)
NORTHEAST TOTAL/ 3,654,000
847,001,000 11,019,000 12.2 12.1 1,844,000
AVERAGE
SOUTH
Atlanta, GA 49,946,000 - 450,000 17.9 17.6 154,000
Charleston, SC 2,068,000 - - 7.6 9.0 (18,000)
Charlotte, NC 23,188,000 - - 11.1 11.3 37,000
Columbia, SC 4,964,000 - - 24.1 23.8 (30,000)
Dallas/Fort Worth, TX 45,550,000 - - 23.8 24.2 (175,000)
Ft. Lauderdale-Broward, FL 8,129,000 - - 16.6 16.1 68,000
Houston, TX 38,333,000 - - 16.6 14.3 267,000
Jacksonville, FL 15,902,000 - - 13.6 14.5 10,000
Little Rock, AR 6,538,000 - - 16.0 15.3 1,000
Louisville, KY 51,664,000 233,000 195,000 11.4 11.0 461,000
Memphis, TN 13,366,000 - - 18.2 18.1 56,000
Miami-Dade, FL 17,774,000 - - 20.9 20.5 72,000
Nashville, TN 8,114,000 530,000 90,000 22.7 22.9 1,000
Oklahoma City, OK 9,576,000 - 1,800,000 16.5 15.1 133,000
Orlando, FL 12,704,000 - - 13.1 11.8 164,000
Raleigh/Durham/Chapel 12,338,000 - 402,000 5.8 5.7 (44,000)
Hill, NC
Savannah, GA 747,000 - 72,000 16.9 15.1 13,000
Tampa Bay, FL 8,423,000 - - 14.3 14.0 1,000
West Palm Beach/Palm 10,047,000 - - 18.2 18.5 (55,000)
Beach County, FL
SOUTH TOTAL/AVERAGE 339,371,000 763,000 3,009,000 16.4 16.0 1,116,000
COLLIERS INTERNATIONAL | P. 6
7. HIGHLIGHTS | Q1 2012 | OFFICE | NORTH AMERICA
UNITED STATES | DOWNTOWN OFFICE | ALL INVENTORY
EXISTING NEW SUPPLY UNDER VACANCY VACANCY ABSORPTION
INVENTORY (SF) Q1 2012 CONSTRUCTION RATE (%) RATE (%) Q1 2012
MARKET MAR. 31, 2012 (SF) (SF) DEC. 31, 2011 MAR. 31, 2012 (SF)
MIDWEST
Chicago, IL 158,755,000 - - 14.1 14.1 (35,000)
Cincinnati, OH 18,008,000 - - 17.8 17.8 (9,000)
Cleveland, OH 34,162,000 - 475,000 18.5 18.4 26,000
Columbus, OH 19,358,000 - - 10.9 10.9 6,000
Detroit, MI 32,988,000 - - 19.4 20.5 (243,000)
Grand Rapids, MI 5,457,000 - - 24.2 24.7 (37,000)
Indianapolis, IN 23,453,000 - - 13.6 13.8 (43,000)
Kansas City, MO 35,108,000 - - 13.0 13.1 (55,000)
Minneapolis, MN 32,612,000 - 62,000 14.6 13.8 271,000
Omaha, NE 6,382,000 - - 7.4 6.0 -
St. Louis, MO 27,494,000 - - 19.1 19.2 (17,000)
St. Paul, MN 13,638,000 - - 13.8 13.4 54,000
MIDWEST TOTAL/AVERAGE 407,415,000 - 537,000 15.2 15.2 (82,000)
WEST
Bakersfield, CA 3,010,000 - - 9.9 10.1 (10,000)
Boise, ID 3,697,000 - 260,000 12.0 11.6 2,000
Denver, CO 34,361,000 - 382,000 12.5 12.1 172,000
Fresno, CA 3,285,000 - - 12.0 12.0 -
Honolulu, HI 7,113,000 - - 14.0 14.1 (10,000)
Las Vegas, NV 4,183,000 - 129,000 12.7 13.3 (22,000)
Los Angeles, CA 31,943,000 - 257,000 18.0 17.8 (30,000)
Oakland, CA 16,892,000 - - 13.3 13.5 (28,000)
Phoenix, AZ 20,176,000 - - 20.7 22.2 (337,000)
Portland, OR 34,055,000 - 133,000 8.7 9.1 (129,000)
Reno, NV 3,921,000 - - 19.8 15.4 (1,000)
Sacramento, CA 19,038,000 - - 10.3 10.1 51,000
San Diego, CA 10,150,000 - - 19.8 20.0 20,000
San Francisco, CA 87,205,000 - 1,908,000 12.4 12.2 333,000
San Jose—Silicon Valley 7,602,000 - - 23.5 24.6 (91,000)
Seattle/Puget Sound, WA 56,057,000 - 544,000 13.9 13.0 525,000
Stockton, CA 8,200,000 - - 19.9 19.7 30,000
Walnut Creek/Pleasanton, CA 12,637,000 - - 17.2 17.4 (24,000)
WEST TOTAL/AVERAGE 363,525,000 - 3,613,000 14.0 13.9 451,000
U.S. TOTAL/AVERAGE 1,957,312,000 4,417,000 18,178,000 13.9 13.7 3,329,000
P. 7 | COLLIERS INTERNATIONAL
8. HIGHLIGHTS | Q1 2012 | OFFICE | NORTH AMERICA
UNITED STATES | DOWNTOWN OFFICE | CLASS A
AVG ANNUAL QUARTERLY
EXISTING VACANCY VACANCY ABSORPTION QUOTED RENT CHANGE IN ANNUAL CHANGE
INVENTORY (SF) RATE (%) RATE (%) Q1 2012 (USD) RENT IN RENT
MARKET MAR. 31, 2012 DEC. 31, 2011 MAR. 31, 2012 (SF) MAR. 31, 2012 (%) (%)
NORTHEAST
Baltimore, MD 13,728,000 16.3 16.4 12,000 23.25 3.7% -3.7%
Boston, MA 41,259,000 15.3 15.0 106,000 45.83 -4.0% -0.1%
Hartford, CT 6,383,000 23.5 24.1 (44,000) 22.86 0.4% -0.6%
New York, NY—Downtown Manhattan 77,673,000 18.1 18.3 594,000 48.32 0.3% 25.6%
New York, NY—Midtown Manhattan 192,291,000 12.6 12.5 711,000 68.61 1.3% 8.3%
New York, NY—Midtown South Manhattan 32,865,000 7.8 8.1 (32,000) 49.22 0.8% 4.0%
Philadelphia, PA 32,961,000 11.2 11.2 17,000 26.40 0.0% 1.1%
Pittsburgh, PA 17,957,000 8.0 8.2 (36,000) 22.63 0.2% 0.4%
Stamford, CT 13,300,000 19.9 20.0 (24,000) 38.99 -5.3% -3.1%
Washington DC 85,274,000 12.7 12.1 583,000 52.80 -0.1% -0.3%
White Plains, NY 4,969,000 16.7 17.3 (15,000) 31.63 -2.0% 5.6%
NORTHEAST TOTAL/AVERAGE 518,660,000 13.6 13.5 1,872,000 52.78 0.3% 6.9%
SOUTH
Atlanta, GA 29,994,000 19.5 19.3 84,000 22.92 0.8% 1.1%
Charleston, SC 1,043,000 5.9 5.1 8,000 29.96 2.8% 4.2%
Charlotte, NC 16,174,000 12.6 13.6 (66,000) 23.49 -3.2% -2.1%
Columbia, SC 2,023,000 15.5 14.7 (8,000) 14.48 -24.4% -25.7%
Dallas/Fort Worth, TX 28,056,000 20.4 21.1 (197,000) 25.00 0.0% -1.0%
Ft. Lauderdale-Broward, FL 4,454,000 23.8 22.4 64,000 31.37 0.4% -2.4%
Houston, TX 26,122,000 14.3 10.9 239,000 36.42 3.2% 6.5%
Jacksonville, FL 6,830,000 19.5 19.5 (24,000) 19.36 1.3% 2.4%
Little Rock, AR 2,636,000 10.0 10.2 (3,000) 15.68 0.5% -5.5%
Louisville, KY 10,222,000 12.7 11.6 226,000 19.42 -4.8% -6.0%
Memphis, TN 3,934,000 18.0 17.2 30,000 33.82 1.6% -2.8%
Miami-Dade, FL 9,389,000 25.5 24.6 78,000 40.38 -2.1% -2.6%
Nashville, TN 3,619,000 22.7 21.4 6,000 22.92 1.6% 1.1%
Oklahoma City, OK 1,950,000 12.1 6.4 111,000 17.18 0.0% N/A
Orlando, FL 5,740,000 17.1 15.4 94,000 23.73 -1.4% 3.4%
Raleigh/Durham/Chapel Hill, NC 4,902,000 7.0 6.9 (6,000) 24.00 6.4% -0.5%
Savannah, GA 570,000 10.8 12.2 (8,000) 19.15 -0.3% N/A
Tampa Bay, FL 4,783,000 15.8 15.5 (9,000) 23.09 2.1% 2.5%
West Palm Beach/Palm Beach County, FL 3,323,000 21.5 20.9 (6,000) 37.11 0.8% 0.6%
SOUTH TOTAL/AVERAGE 165,764,000 17.3 16.6 613,000 26.26 0.2% 0.1%
COLLIERS INTERNATIONAL | P. 8
9. HIGHLIGHTS | Q1 2012 | OFFICE | NORTH AMERICA
UNITED STATES | DOWNTOWN OFFICE | CLASS A
AVG ANNUAL QUARTERLY
EXISTING VACANCY VACANCY ABSORPTION QUOTED RENT CHANGE IN ANNUAL CHANGE
INVENTORY (SF) RATE (%) RATE (%) Q1 2012 (USD) RENT IN RENT
MARKET MAR. 31, 2012 DEC. 31, 2011 MAR. 31, 2012 (SF) MAR. 31, 2012 (%) (%)
MIDWEST
Chicago, IL 60,452,000 14.9 15.4 (301,000) 37.27 0.5% -0.6%
Cincinnati, OH 8,815,000 19.1 20.1 (92,000) 23.25 -0.5% 9.0%
Cleveland, OH 9,728,000 12.9 12.1 81,000 21.65 4.7% 2.5%
Columbus, OH 8,106,000 11.3 11.2 6,000 19.64 4.5% 2.0%
Detroit, MI 11,513,000 15.8 19.1 (372,000) 22.50 0.2% -2.2%
Grand Rapids, MI 1,542,000 23.2 23.6 (39,000) 20.90 -0.3% 0.1%
Indianapolis, IN 9,929,000 18.9 19.1 (36,000) 19.29 0.7% -0.4%
Kansas City, MO 10,270,000 16.5 17.7 (120,000) 19.23 -1.7% -1.6%
Minneapolis, MN 14,162,000 12.7 11.8 137,000 15.08 0.0% N/A
Omaha, NE 3,418,000 3.6 3.6 3,000 19.87 3.0% 5.7%
St. Louis, MO 10,678,000 15.0 16.9 (227,000) 17.53 -1.4% -5.5%
St. Paul, MN 3,123,000 9.8 9.8 91,000 11.10 0.0% N/A
MIDWEST TOTAL/AVERAGE 151,736,000 14.8% 15.4 (869,000) 26.44 0.6% -5.7%
WEST
Bakersfield, CA 670,000 3.8 5.0 (8,000) 17.40 0.0% 0.0%
Boise, ID 2,057,000 7.6 8.2 (12,000) 19.08 2.5% 6.0%
Denver, CO 21,064,000 12.6 11.4 243,000 28.52 1.7% 5.5%
Fresno, CA 1,058,000 12.4 12.4 - 26.00 0.0% 5.7%
Honolulu, HI 4,960,000 13.7 14.0 (17,000) 35.16 1.0% 0.3%
Las Vegas, NV 808,000 9.1 11.2 (18,000) 30.60 -1.5% -12.1%
Los Angeles, CA 17,750,000 15.4 15.2 (38,000) 38.40 -0.3% -0.3%
Oakland, CA 10,198,000 11.7 11.7 12,000 31.56 -0.4% 1.2%
Phoenix, AZ 9,554,000 20.4 20.4 (2,000) 23.47 -0.4% -2.5%
Portland, OR 13,206,000 7.1 7.9 (109,000) 25.07 -0.5% -1.3%
Reno, NV 667,000 16.8 19.2 (5,000) 22.05 -4.3% -5.8%
Sacramento, CA 9,062,000 9.1 8.7 24,000 32.27 -0.2% 0.4%
San Diego, CA 7,254,000 16.9 17.7 (42,000) 28.20 -0.4% -1.7%
San Francisco, CA 52,917,000 12.0 12.0 414,000 43.51 5.8% 21.0%
San Jose—Silicon Valley 3,365,000 29.1 29.2 (4,000) 31.80 -0.7% -1.9%
Seattle/Puget Sound, WA 32,121,000 16.9 15.5 431,000 30.13 0.1% 3.4%
Stockton, CA 2,769,000 30.0 29.8 1,000 20.40 -3.4% -5.6%
Walnut Creek/Pleasanton, CA 8,234,000 15.2 15.2 (2,000) 27.60 0.4% 0.0%
WEST TOTAL/AVERAGE 197,714,000 13.9 13.7 868,000 33.43 2.1% 7.2%
US TOTAL/AVERAGE 1,033,874,000 14.4 14.3 2,484,000 40.96 0.6% 4.3%
P. 9 | COLLIERS INTERNATIONAL
10. HIGHLIGHTS | Q1 2012 | OFFICE | NORTH AMERICA
UNITED STATES | SUBURBAN OFFICE | ALL INVENTORY
EXISTING NEW SUPPLY UNDER VACANCY VACANCY ABSORPTION
INVENTORY (SF) Q1 2012 CONSTRUCTION RATE (%) RATE (%) Q1 2012
MARKET MAR. 31, 2012 (SF) (SF) DEC 31, 2011 MAR. 31, 2012 (SF)
NORTHEAST
Baltimore, MD 65,087,000 194,000 - 14.4 14.3 195,000
Boston, MA 106,977,000 - 667,000 19.6 19.8 (442,000)
Fairfield County, CT 41,560,000 - - 11.1 11.2 (9,000)
Hartford, CT 12,437,000 - - 18.0 17.5 66,000
Long Island, NY 71,209,000 - 96,000 10.7 10.3 247,000
New Jersey—Central 103,675,000 - - 16.1 16.7 (693,000)
New Jersey—Northern 137,832,000 - - 15.8 15.5 366,000
Philadelphia, PA 109,975,000 218,000 895,000 15.9 15.5 597,000
Pittsburgh, PA 93,053,000 141,000 575,000 8.0 7.9 329,000
Washington DC 305,036,000 330,000 3,893,000 14.7 15.1 (750,000)
Westchester County, NY 37,713,000 - - 12.4 12.8 (148,000)
NORTHEAST TOTAL/AVERAGE 1,084,554,000 883,000 6,126,000 14.5 14.6 (242,000)
SOUTH
Atlanta, GA 170,438,000 16,000 1,251,000 17.9 17.6 474,000
Charleston, SC 9,380,000 - - 15.5 16.2 (36,000)
Charlotte, NC 74,197,000 - 644,000 13.6 13.4 198,000
Columbia, SC 5,050,000 - - 25.5 26.5 (41,000)
Dallas/Fort Worth, TX 258,883,000 85,000 995,000 15.1 15.7 392,000
Ft. Lauderdale-Broward, FL 43,569,000 - - 14.1 13.9 62,000
Houston, TX 160,231,000 916,000 2,292,000 15.3 14.7 808,000
Jacksonville, FL 43,484,000 60,000 19,000 13.6 13.8 62,000
Little Rock, AR 7,433,000 - 182,000 10.5 13.5 (223,000)
Memphis, TN 53,580,000 - - 14.1 14.9 (164,000)
Miami-Dade, FL 62,246,000 - 369,000 14.8 14.5 305,000
Nashville, TN 27,030,000 - 243,000 10.3 8.4 69,000
Oklahoma City, OK 23,861,000 320,000 - 9.2 8.6 28,000
Orlando, FL 56,622,000 134,000 280,000 15.0 14.8 264,000
Raleigh/Durham/Chapel Hill, NC 67,294,000 - 141,000 14.2 13.6 237,000
Savannah, GA 1,555,000 - - 24.7 22.2 40,000
Tampa Bay, FL 71,716,000 - 286,000 15.7 16.1 (249,000)
West Palm Beach/Palm Beach County, FL 28,408,000 - - 19.8 20.0 40,000
SOUTH TOTAL/AVERAGE 1,164,977,000 1,531,000 6,702,000 15.2 15.2 2,266,000
MIDWEST
Chicago, IL 155,464,000 - 416,000 17.6 17.6 7,000
Cincinnati, OH 35,097,000 - 245,000 20.5 19.2 458,000
Cleveland, OH 94,728,000 210,000 1,081,000 10.3 10.4 194,000
Columbus, OH 43,683,000 140,000 50,000 12.6 12.5 (24,000)
Detroit, MI 99,620,000 - 58,000 20.9 20.5 250,000
Grand Rapids, MI 12,791,000 - - 23.1 26.0 100,000
Indianapolis, IN 44,733,000 - - 16.1 15.9 70,000
P. 10 | COLLIERS INTERNATIONAL
11. HIGHLIGHTS | Q1 2012 | OFFICE | NORTH AMERICA
UNITED STATES | SUBURBAN OFFICE | ALL INVENTORY
EXISTING NEW SUPPLY UNDER VACANCY VACANCY ABSORPTION
INVENTORY (SF) Q1 2012 CONSTRUCTION RATE (%) RATE (%) Q1 2012
MARKET MAR. 31, 2012 (SF) (SF) DEC 31, 2011 MAR. 31, 2012 (SF)
Kansas City, MO 56,191,000 - 102,000 13.8 13.9 (82,000)
Minneapolis, MN 83,345,000 - 467,000 13.8 13.7 121,000
Omaha, NE 20,470,000 - 679,000 12.9 12.3 133,000
St. Louis, MO 55,304,000 - - 12.5 10.8 47,000
MIDWEST TOTAL/AVERAGE 701,426,000 350,000 3,098,000 15.5 15.4 1,274,000
WEST
Bakersfield, CA 5,975,000 - - 8.1 7.8 26,000
Boise, ID 10,883,000 - - 21.4 19.2 231,000
Denver, CO 103,618,000 - 185,000 15.1 15.0 108,000
Fairfield, CA 4,708,000 - - 23.7 23.5 12,000
Fresno, CA 17,981,000 6,000 10,000 13.5 13.2 69,000
Honolulu, HI 7,513,000 - - 13.1 13.1 2,000
Las Vegas, NV 35,089,000 9,000 5,000 26.3 26.4 (18,000)
Los Angeles—Inland Empire, CA 21,558,000 - 140,000 23.3 23.2 23,000
Los Angeles, CA 168,450,000 - 1,123,000 18.3 18.3 95,000
Oakland, CA 16,066,000 - 97,000 17.6 18.6 (107,000)
Orange County, CA 80,682,000 - 380,000 18.8 18.6 (282,000)
Phoenix, AZ 110,351,000 210,000 236,000 22.0 22.0 152,000
Portland, OR 43,962,000 28,000 385,000 12.5 11.9 294,000
Reno, NV 6,934,000 - - 19.7 16.9 1,000
Sacramento, CA 72,687,000 72,000 235,000 19.4 19.4 63,000
San Diego, CA 68,066,000 4,000 249,000 14.7 14.3 255,000
San Francisco Peninsula 35,123,000 - - 12.5 12.5 (5,000)
San Jose—Silicon Valley 53,922,000 - 447,000 14.9 13.9 367,000
Seattle/Puget Sound, WA 72,785,000 - 426,000 13.1 12.9 124,000
Walnut Creek/Pleasanton, CA 32,942,000 - - 15.0 14.7 96,000
WEST TOTAL/AVERAGE 969,295,000 329,000 3,918,000 17.4 17.2 1,506,000
U.S. TOTAL/AVERAGE 3,920,252,000 3,093,000 19,844,000 15.6 15.5 4,804,000
COLLIERS INTERNATIONAL | P. 11
12. HIGHLIGHTS | Q1 2012 | OFFICE | NORTH AMERICA
UNITED STATES | SUBURBAN OFFICE | CLASS A
ANNUAL
EXISTING VACANCY VACANCY ABSORPTION AVERAGE ANNUAL QUARTERLY CHANGE IN
INVENTORY (SF) RATE (%) RATE (%) Q1 2012 QUOTED RENT (USD CHANGE IN RENT RENT
MARKET MAR. 31, 2012 DEC. 31, 2011 MAR. 31, 2012 (SF) PSF) MAR 31, 2012 (%) (%)
NORTHEAST
Baltimore, MD 26,571,000 15.1 15.3 (13,000) 25.41 -1.1% -1.7%
Boston, MA 44,915,000 17.3 17.4 81,000 26.74 1.1% 2.2%
Fairfield County, CT 17,480,000 12.2 12.0 (70,000) 37.86 17.0% 24.0%
Hartford, CT 7,408,000 18.9 17.2 352,000 20.68 -1.3% 1.1%
Long Island, NY 23,008,000 12.1 11.7 49,000 30.03 0.4% N/A
New Jersey—Central 60,629,000 17.3 17.9 (13,000) 22.95 0.9% 0.8%
New Jersey—Northern 83,843,000 14.6 14.3 81,000 23.39 -1.3% -5.2%
Philadelphia, PA 67,281,000 15.3 14.9 (70,000) 24.33 1.3% 1.1%
Pittsburgh, PA 17,300,000 8.1 7.6 352,000 22.69 1.7% 8.6%
Washington DC 134,615,000 15.3 15.5 49,000 32.29 2.8% 3.0%
Westchester County, NY 18,276,000 14.9 16.4 (13,000) 27.05 -0.6% -1.3%
NORTHEAST TOTAL/AVERAGE 501,326,000 15.1 15.2 785,000 27.14 1.8% 2.3%
SOUTH
Atlanta, GA 78,622,000 17.4 17.2 352,000 21.64 -0.5% -1.5%
Charleston, SC 3,943,000 10.8 11.5 49,000 23.13 -2.8% 0.3%
Charlotte, NC 18,451,000 16.0 15.6 (13,000) 21.64 0.7% 7.1%
Columbia, SC 888,000 12.9 13.2 81,000 17.46 1.3% 0.6%
Dallas/Fort Worth, TX 91,879,000 16.9 17.0 (70,000) 25.00 1.0% 1.0%
Ft. Lauderdale-Broward, FL 10,739,000 20.0 19.1 352,000 27.68 -0.5% -3.0%
Houston, TX 67,598,000 14.4 12.4 49,000 28.86 5.6% 7.2%
Jacksonville, FL 9,204,000 8.8 10.4 (13,000) 19.98 -1.6% 1.8%
Little Rock, AR 2,847,000 12.3 19.1 81,000 19.14 3.3% 3.3%
Memphis, TN 15,952,000 8.4 8.5 (70,000) 43.34 0.2% 1.9%
Miami-Dade, FL 15,568,000 21.3 20.0 352,000 31.50 0.1% -1.5%
Nashville, TN 13,484,000 6.8 5.3 49,000 21.83 -0.1% -2.3%
Oklahoma City, OK 2,669,000 12.6 8.8 (13,000) 19.91 9.8% N/A
Orlando, FL 16,855,000 19.7 19.1 81,000 21.99 0.0% -2.5%
Raleigh/Durham/Chapel Hill, NC 25,677,000 16.4 15.9 (70,000) 21.53 -1.9% -0.7%
Savannah, GA 490,000 28.0 22.6 352,000 22.62 0.0% N/A
Tampa Bay, FL 23,476,000 16.4 17.3 49,000 23.03 -1.1% -0.1%
West Palm Beach/Palm Beach County, 9,175,000 17.9 19.1 (13,000) 30.14 -1.4% -0.3%
FL
SOUTH TOTAL/AVERAGE 407,517,000 15.9 15.5 1,585,000 24.36 1.1% 1.1%
MIDWEST
Chicago, IL 75,536,000 18.2 18.2 (70,000) 27.30 0.4% -0.1%
Cincinnati, OH 14,897,000 23.3 19.4 352,000 20.37 -0.6% 1.0%
Cleveland, OH 13,174,000 10.9 10.5 49,000 21.23 -2.4% -1.6%
Columbus, OH 17,977,000 10.7 10.7 (13,000) 18.31 4.9% 5.6%
Detroit, MI 25,548,000 19.6 19.1 81,000 21.33 -0.8% -3.7%
P. 12 | COLLIERS INTERNATIONAL
13. HIGHLIGHTS | Q1 2012 | OFFICE | NORTH AMERICA
UNITED STATES | SUBURBAN OFFICE | CLASS A
ANNUAL
EXISTING VACANCY VACANCY ABSORPTION AVERAGE ANNUAL QUARTERLY CHANGE IN
INVENTORY (SF) RATE (%) RATE (%) Q1 2012 QUOTED RENT (USD CHANGE IN RENT RENT
MARKET MAR. 31, 2012 DEC. 31, 2011 MAR. 31, 2012 (SF) PSF) MAR 31, 2012 (%) (%)
Grand Rapids, MI 958,000 30.5 28.6 (70,000) 19.33 0.5% 3.4%
Indianapolis, IN 12,403,000 19.7 19.5 352,000 18.11 -1.1% -5.8%
Kansas City, MO 14,932,000 13.8 13.7 49,000 20.25 -0.6% -1.7%
Minneapolis, MN 25,466,000 15.3 15.0 (13,000) 14.17 2.2% N/A
Omaha, NE 4,141,000 5.6 5.4 81,000 25.63 -0.6% -1.5%
St. Louis, MO 26,028,000 13.4 10.0 (70,000) 22.01 -0.9% 0.9%
MIDWEST TOTAL/AVERAGE 231,060,000 16.5 15.7 728,000 22.09 0.2% -3.5%
WEST
Bakersfield, CA 2,698,000 5.5 4.8 352,000 24.00 0.0% 0.0%
Boise, ID 4,620,000 24.4 21.2 49,000 17.10 0.3% -5.0%
Denver, CO 33,601,000 13.3 13.1 (13,000) 22.77 3.2% 5.9%
Fairfield, CA 1,837,000 24.9 23.6 81,000 26.08 4.0% 2.0%
Fresno, CA 3,943,000 18.7 20.2 (70,000) 25.20 0.0% 0.0%
Las Vegas, NV 5,079,000 36.8 35.0 352,000 29.36 -1.5% -6.4%
Los Angeles—Inland Empire, CA 5,054,000 28.3 27.2 49,000 23.04 0.0% -4.5%
Los Angeles, CA 102,115,000 18.3 18.1 (13,000) 33.48 0.0% -3.1%
Oakland, CA 3,771,000 20.7 22.7 81,000 26.28 -1.4% 1.4%
Orange County, CA 32,835,000 19.7 20.2 (70,000) 22.92 -10.7% -12.0%
Phoenix, AZ 30,352,000 24.7 24.3 352,000 22.88 -0.3% -3.7%
Portland, OR 10,815,000 15.1 14.5 49,000 23.46 -0.8% 1.0%
Reno, NV 799,000 17.9 19.5 (13,000) 16.69 -16.7% -16.2%
Sacramento, CA 16,060,000 22.9 23.7 81,000 22.38 -0.7% -5.2%
San Diego, CA 23,975,000 13.3 12.4 (70,000) 31.68 0.4% 0.4%
San Francisco Peninsula 22,262,000 10.7 11.5 352,000 41.88 10.8% 26.4%
San Jose—Silicon Valley 26,235,000 15.6 14.3 49,000 36.96 2.3% 8.5%
Seattle/Puget Sound, WA 26,672,000 15.0 14.8 (13,000) 31.47 0.4% 1.3%
Walnut Creek/Pleasanton, CA 16,238,000 12.2 12.6 81,000 23.76 5.3% 4.2%
WEST TOTAL/AVERAGE 368,961,000 17.6 17.4 1,666,000 29.27 0.7% 0.7%
U.S. TOTAL/AVERAGE 1,508,864,000 16.2 15.9 4,764,000 26.14 1.1% 0.7%
COLLIERS INTERNATIONAL | P. 13
14. HIGHLIGHTS | Q1 2012 | OFFICE | NORTH AMERICA
CANADA | DOWNTOWN OFFICE | ALL INVENTORY
EXISTING NEW SUPPLY UNDER VACANCY VACANCY ABSORPTION
INVENTORY (SF) Q1 2012 CONSTRUCTION RATE (%) RATE (%) Q1 2012
MARKET MAR. 31, 2012 (SF) SF DEC. 31, 2011 MAR. 31, 2012 (SF)
Calgary, AB 38,591,000 950,000 1,791,000 4.5 4.2 859,000
Edmonton, AB 11,284,000 - - 11.1 10.7 27,000
Guelph, ON 383,000 - 12,000 15.4 10.8 17,000
Halifax, NS 4,693,000 5,000 100,000 11.8 13.2 (61,000)
Montréal, QC 49,429,000 - 304,000 5.6 5.4 77,000
Ottawa, ON 15,527,000 - 360,000 6.1 6.2 (15,000)
Regina, SK 3,434,000 - 280,000 1.7 1.7 (1,000)
Saskatoon, SK 2,099,000 - 230,000 2.4 1.8 13,000
Toronto, ON 70,273,000 - 1,573,000 5.1 4.1 349,000
Vancouver, BC 24,384,000 - 1,143,000 3.5 3.8 (97,000)
Victoria, BC* 4,938,000 - - 7.7 7.7 -
Waterloo Region, ON 3,597,000 - 176,000 12.6 11.3 45,000
CANADA TOTAL/AVERAGE 228,632,000 955,000 5,969,000 5.5 5.2 1,213,000
CANADA | DOWNTOWN OFFICE | CLASS A
VACANCY VACANCY AVG ANNUAL QUARTERLY ANNUAL
EXISTING RATE (%) RATE (%) ABSORPTION QUOTED RENT CHANGE CHANGE
INVENTORY (SF) DEC. 31, MAR. 31, Q1 2012 (CAD PSF) IN RENT IN RENT
MARKET MAR. 31, 2012 2011 2012 (SF) MAR. 31, 2012 (%) (%)
Calgary, AB 25,757,000 1.5 1.9 858,000 58.00 4.7% 46.8%
Edmonton, AB 8,879,000 9.1 8.7 24,000 41.43 3.8% 5.6%
Guelph, ON 203,000 0.0 0.0 - 23.10 0.0% 0.0%
Halifax, NS 1,934,000 7.0 10.3 (57,000) 32.36 1.7% 0.0%
Montréal, QC 23,076,000 5.2 5.1 18,000 42.00 0.0% 13.5%
Ottawa, ON 9,536,000 5.8 5.8 - 48.36 0.0% -0.1%
Regina, SK 875,000 1.9 1.9 - 38.90 5.1% 4.9%
Saskatoon, SK 492,000 0.9 0.9 - 37.00 0.0% 8.8%
Toronto, ON 37,315,000 5.2 4.6 340,000 53.66 0.7% -3.6%
Vancouver, BC 9,990,000 2.4 2.4 (15,000) 55.00 0.9% 2.8%
Victoria, BC* 821,000 7.5 7.5 - 37.78 0.0% N/A
Waterloo Region, ON 1,427,000 6.7 4.7 28,000 25.92 0.2% 11.9%
CANADA TOTAL/AVERAGE 120,305,000 4.6 4.4 1,196,000 50.13 1.8% 9.1%
* Victoria, BC year end is Q3
P. 14 | COLLIERS INTERNATIONAL
15. HIGHLIGHTS | Q1 2012 | OFFICE | NORTH AMERICA
CANADA | SUBURBAN OFFICE | ALL INVENTORY
EXISTING NEW SUPPLY UNDER VACANCY VACANCY ABSORPTION
INVENTORY (SF) Q1 2012 CONSTRUCTION RATE (%) RATE (%) Q1 2012
MARKET MAR. 31, 2012 (SF) (SF) DEC. 31, 2011 MAR. 31, 2012 (SF)
Calgary, AB 23,800,000 - 1,214,000 9.4 8.4 329,000
Edmonton, AB 8,993,000 85,000 279,000 13.0 11.9 137,000
Guelph, ON 1,383,000 - - 4.4 4.7 (4,000)
Halifax, NS 6,668,000 256,000 130,000 10.0 11.9 101,000
Montréal, QC 23,771,000 - 298,000 9.8 8.6 182,000
Ottawa, ON 21,008,000 36,000 122,000 8.1 8.5 (97,000)
Regina, SK 678,000 - - 0.1 0.1 -
Toronto, ON 68,278,000 104,000 664,000 7.0 6.5 454,000
Vancouver, BC 27,678,000 200,000 1,141,000 10.9 11.2 82,000
Victoria, BC* 3,593,000 - 95,000 9.1 9.1 -
Waterloo Region, ON 6,732,000 322,000 207,000 12.9 12.0 329,000
CANADA TOTAL/AVERAGE 192,582,000 1,003,000 4,150,000 8.9 8.5 1,513,000
CANADA | SUBURBAN OFFICE | CLASS A
VACANCY VACANCY AVERAGE ANNUAL QUARTERLY
EXISTING RATE (%) RATE (%) ABSORPTION QUOTED RENT CHANGE ANNUAL CHANGE
INVENTORY (SF) DEC. 31, MAR. 31, Q1 2012 (CAD PSF) IN RENT IN RENT
MARKET MAR. 31, 2012 2011 2011 (SF) MAR. 31, 2012 (%) (%)
Calgary, AB 11,104,366 7.8 6.6 145,792 42.00 2.4% 13.5%
Edmonton, AB 847,668 3.0 4.0 - 25.96 0.6% 1.4%
Guelph, ON 2,739,210 8.6 9.7 (8,440) 29.48 4.8% 4.1%
Halifax, NS 13,336,192 8.0 7.1 28,702 28.00 0.0% -6.7%
Montréal, QC 11,980,116 8.5 8.6 124,861 31.26 0.0% -4.3%
Ottawa, ON 677,530 0.1 0.1 (18,493) 28.50 0.0% 0.0%
Regina, SK 31,029,906 8.3 7.1 - 29.57 0.7% -2.8%
Toronto, ON 13,426,379 11.5 12.2 238,752 36.25 0.7% -5.8%
Vancouver, BC 817,488 8.7 8.7 52,594 40.00 0.0% N/A
Victoria, BC* 3,174,920 16.3 16.3 - 24.20 -0.7% 5.1%
Waterloo Region, ON 89,133,775 8.8 8.4 270,813 31.98 0.8% 0.4%
Canada Total 89,133,775 8.8 8.4 834,581 31.98 0.8% .4%
* Victoria, BC year end is Q3
Glossary
Inventory – Includes all existing multi- or single- New Supply – Includes completed speculative and Cap Rate – (Or going-in cap rate) Capitalization
tenant leased and owner-occupied office properties build-to-suit construction. New supply quoted on a rates in this survey are based on multi-tenant
greater than or equal to 10,000 square feet (net net basis after any demolitions or conversions. institutional grade buildings fully leased at market
rentable area). In some larger markets this minimum rents. Cap rates are calculated by dividing net
size threshold may vary up to 50,000 square feet. Annual Quoted Rent – Includes all costs associated operating income (NOI) by purchase price.
Does not include medical or government buildings. with occupying a full floor in the mid-rise portion of
a Class A building, inclusive of taxes, insurance, Note: SF = square feet
Vacancy Rate – Percentage of total inventory maintenance, janitorial and utilities (electricity MSF = million square feet
physically vacant as of the survey date, including surcharges added where applicable). All office rents PSF = per square foot
direct vacant and sublease space. in this report are quoted on an annual, gross per CBD = central business district
square foot basis. Rent calculations do not include
Absorption – Net change in physically occupied sublease space.
space over a given period of time.
COLLIERS INTERNATIONAL | P. 15
