1. Q3 2011 | OFFICE
GREATER COLUMBUS REGION
OFFICE TRENDS REPORT
Activity Turns to Gains
COLUMBUS REGION OVERVIEW
The Columbus office market gained 195,000 square feet of positive absorption in the third quarter.
This is the second quarter in a row of positive absorption, and the last consecutive quarters of
positive net absorption were fourth quarter 2008 and first quarter 2009. Construction seems to be
picking up in the headlines at least as developers are discussing projects to fill demand for continuous
space of 50,000 square feet or greater as well as expansion on the major firms in Columbus such as
JP Morgan Chase and Nationwide Insurance. Leasing was led by JP Morgan Chase Bank filling
72,500 square feet of 1000 Polaris Parkway. Continued on page 2 ...
MARKET INDICATORS
Q3 Q4
FORECASTS AND REFLECTIONS
2011 2011*
• The Columbus region posted positive results is expected to complete their 110,000-square-
VACANCY during the third quarter of 2011 with the foot faciility in fourth quarter 2011. TJX is also
vacancy rate decreasing to 12.8 percent from expected to complete its 81,000-square-foot
NET ABSORPTION 13.0 percent. data center in fourth quarter 2011.
CONSTRUCTION — • NetJets, Inc.’s construction continues at their • Two new office projects have been approved
140,000-square-foot building at Port Columbus for downtown. Nationwide Insurance has been
RENTAL RATES — — International Airport, as does construction of approved for a 200,000-square-foot building
Water’s Edge II in New Albany. Sherer’s Court on the corner of Nationwide and Spring. FBI
*Projected trend for next quarter
expansion of 36,000-square-foot was will anchor a new project by Nationwide Realty
completed for DZ. In New Albany, Pharmaforce Investors.
POSITIVE SIGNS
RENTAL RATES ABSORPTION, COMPLETIONS, AND VACANCY RATES
Manager’s confidence in
20.0% 300,000 the economy improved
$22.00
18.0% over first quarter 2011
$21.00
200,000 but has since waned due
$20.00 16.0%
to less than outstanding
Completions and Absorption
$19.00
Rental Rates
14.0% 100,000
$18.00 economic news. The US
jobs report in September
Vacancy Rates
$17.00 12.0%
0
$16.00
10.0% showed the economy
had created 103,000
$15.00
(100,000)
$14.00 8.0%
3Q 08 4Q 08 1Q 09 2Q 09 3Q 09 4Q 09 1Q 10 2Q 10 3Q 10 4Q 10 1Q 11 2Q 11 jobs, which may help
Class A Rental Rates Class B 6.0% (200,000) managers confidence in
4.0% the economy.
(300,000)
2.0%
0.0% (400,000)
3Q 08 4Q 08 1Q 09 2Q 09 3Q 09 4Q 09 1Q 10 2Q 10 3Q 10 4Q 10 1Q 11 2Q 11
Completions Absorption Vacancy Rate
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2. RESEARCH & FORECAST REPORT | Q3 2011 | OFFICE | GREATER COLUMBUS REGION
Market interest has increased during the third transition was slightly more than 1 million square
Delaware
County quarter. While it’s very difficult to calculate and feet which is roughly 350,000 more square feet
Union County gauge market interest, Colliers International in transition than Q3 2010.
Powell Polaris
Westerville
attempts to deduce demand by tracking tenants
EMPLOYMENT DATA
Licking
Worthington New
County in the market. There was a slight increase
Dublin Albany
Bethel
North compared to last quarter in the size desired by
Central
The unemployment rate for Columbus in July
Hilliard Arlington/
Easton Gahanna/
tenants that have toured space and have been in
Grandview Airport
remained at 8.2 percent from June, up from a six
the market. There were roughly 11 tenants
CBD
Madison
County
East
month low of 7.3 percent in April 2011. The
seeking more than 25,000 square feet of space
Southwest
unemployment rate is determined by the ratio of
Southeast
which has not significantly changed from last
Fairfield
County the number of those who have looked for work in
quarter. (recheck before send)
the last 4 weeks compared to the total number of
Pickaway County
workers including those searching for
Tenants are facing similar difficulties as they
employment.
have been throughout the recovery. Move costs
The Columbus office market consists
of 15 suburban submarkets plus the are contributing to slowing a deal down as
The sectors which are significant for office
Central Business District submarket. The financing the move has become more difficult.
leasing were steady or up in the preliminary July
Columbus region features a total of 62.6
million square feet, 43.5 million of which numbers. The Information sector has remained
Landlords are still facing the same bundle of
is suburban. flat January through July, but the sector is down
problems they have been all year. Loan maturity
2.4 percent year-over-year. Employment for
has lenders putting pressure on landlords to
Financial Activities in the first half of the year
lease space quickly while the lower net rental
was stronger than the same period in 2011. 1,300
rates required to secure those deals are below
jobs were made from June to July bringing the
the returns expected. Tenant improvement costs
growth year-over-year in July to 1.3 percent.
are being negotiated on either both of the
Professional and Business Services had been
agreement. Sometimes the landlord’s are
stronger this year than last but that growth has
negotiating pay for improvements in exchange
waned in June and July. The sector gained
for other incentives.
2,000 jobs from June to July but the growth year
over year fell from a high of 4.7 percent in May to
Market Activity Volume is the sum of the absolute
just 2.5 percent in July. Education and Health
value of each absorption change in the market,
Services decreased by about 600 jobs and is
and it tells us how much space was in transition
down 2.3 percent year over year.
in the quarter. The total amount of space in
MARKET ACTIVITY
SALES ACTIVITY
PROPERTY ADDRESS SALES DATE SALE PRICE SIZE SF GRANTOR GRANTEE PRICE / SF TYPE SUBMARKET
2221 Schrock Road August 11 $6,100,000.00 42,290 MS Consultants Lexington Realty Trust $144.00 B Worthington
2151 Dublin Granville Rd August 3 $550,000.00 21,040 MAPLE CANYON CO LLC 2151 DUBLIN LLC $26.82 C Westerville
560 Cleveland Ave July 7 $2,027,352.00 19,694 Cardinal Westerville LLC Altair Professional Village LLC $102.94 B Westerville
505 High St August 1 $900,000.00 19,192 Columbus Properties LLC Sage 505 Inc $46.89 C CBD
36 Gay St September 2 $550,000.00 15,870 Mohawk Properties LLC LA Buckeye Leaseholder LLC $34.65 C CBD
1476 Manning Pkwy August 24 $1,075,000.00 13,259 Dirtworks Skfd Ltd - $81.08 C Powell
LEASE ACTIVITY
PROPERTY ADDRESS LEASE SF LESSOR LESSEE ASKING PRICE (FSG) TYPE SUBMARKET
1000 Polaris Pkwy 72,588 Polaris Crossing LLC JP Morgan Chase $9.95 (NNN) B Polaris
2800 Corporate Exchange 30,000 FTM Associates LLC Stanford Brown University $17.98 B Worthington
3435 Stelzer Rd 27,500 Columbus 1031 LLC Estate Infirmation Services $16.25 A Easton
3455 Mill Run Drive 22,422 One Mill LLC indiana Wesleyan $19.09 A Hilliard
775 Yard St 23,000 775 Yard Street LLC Willis Insurance $23.00 A Arlington/Grandview
775 Yard St 17,000 775 Yard Street LLC MA Architects $23.00 A Arlington/Grandview
P. 2 | COLLIERS INTERNATIONAL

3. RESEARCH & FORECAST REPORT | Q3 2011 | OFFICE | GREATER COLUMBUS REGION
UPDATE Market Comparisons
OFFICE MARKET
Net Absorption Construction Asking Rental Rates
SUBMARKET Total SF Vacant SF Vacancy % Current Quarter Year-to-date Current Completions Class A ($) Class B ($)
CBD 19,091,001 2,252,341 11.8% (31,607) 16,381 - - $19.64 $16.55
ARLINGTON/GRANDVIEW 4,752,155 693,191 14.6% 41,560 36,139 - - $21.60 $15.80
DUBLIN 9,501,878 1,180,242 12.4% 41,814 122,473 - - $17.25 $14.81
EAST 3,555,814 587,656 16.5% (40,319) (4,100) 140,000 - $17.17 $14.22
EASTON 2,685,332 169,260 6.3% (21,079) 14,471 - - $17.83 $22.50
GAHANNA/AIRPORT 1,262,397 159,176 12.6% 8,949 190,213 - - $17.44 $16.24
HILLIARD 2,480,456 472,810 19.1% 22,199 (173,550) - - $19.96 $15.05
NEW ALBANY 1,935,789 184,726 9.5% 21,529 50,208 191,000 - $18.11 $15.00
NORTH CENTRAL 1,255,636 92,496 7.4% (6,849) (24,671) - - $23.00 $14.85
POLARIS 4,419,869 255,423 5.8% 119,337 15,148 - - $18.95 $15.92
POWELL 273,719 78,746 28.8% 2,986 2,282 - - - $14.86
SOUTHEAST 402,548 60,225 15.0% 10,140 (360) - - - -
SOUTHWEST 236,158 54,547 23.1% - (13,074) - - - $7.50
WESTERVILLE 4,489,479 677,634 15.1% 44,358 76,779 - - $16.88 $15.09
WORTHINGTON 6,496,402 1,082,019 16.7% (22,644) (22,476) - - $16.26 $14.70
SUBURBAN TOTAL 43,747,632 5,748,151 13.1% 221,981 269,482 331,000 - $17.96 $14.94
TOTAL 62,838,633 8,000,492 12.7% 190,374 285,863 331,000 - $18.58 $15.41
Net Absorption Construction Asking Rental Rates
PROPERTY TYPE Total SF Vacant SF Vacancy % Current Quarter Year-to-date Current Completions By Product Type
CLASS A 25,676,078 2,951,139 11.5% 193,367 113,503 331,000 - $18.58
CLASS B 23,102,511 3,285,154 14.2% 77,640 229,227 - - $15.41
CLASS C 14,060,044 1,764,199 12.5% (80,633) (56,867) - - $12.47
TOTALS 62,838,633 8,000,492 12.7% 190,374 285,863 331,000 - $16.08
QUARTERLY COMPARISON AND TOTALS
Net Absorption Construction Asking Rental Rates
QUARTER, YEAR Total SF Vacant SF Vacancy % Current Quarter Year-to-date Current Completions By Product Type
Q2, 2011 62,838,633 8,174,763 13.0 189,981 175,481 246,500 - $18.25 $15.25
Q1, 2011 62,838,633 8,394,042 13.4 (14,500) (14,500) 246,500 65,000 $18.10 $15.46
Q4, 2010 40,544,677 7,188,371 17.73 (13,360) (253,648) 65,000 - $18.56 $14.96
Q3, 2010 40,544,677 7,184,011 17.72 (191,783) (240,288) 90,000 - $18.77 $15.38
COLUMBUS REGION MARKET
Colliers international has changed
the critieria for inclusion in the office
dataset. All 10,000 square foot, class
A , B, C buildings, not owned and fully
leased by government are included in
the dataset. This has changed the overall
vacancy rate significantly
from the numbers at the close of 2010.
COLLIERS INTERNATIONAL | P. 3

4. RESEARCH & FORECAST REPORT | Q3 2011 | OFFICE | GREATER COLUMBUS REGION
CENTRAL BUSINESS DISTRICT The big story out of Polaris this quarter is JP
The CBD incurred negative 42,000 square feet Morgan Chase leasing 72,588 square foot at
of absorption. The expansions last quarter have 1000 Polaris Parkway. Chase bank employment 512 offices in
given way to shrinkage this quarter. ATNT
downsized at 150 Gay Street by 19,000 square
has swelled recently as the firm has hired
aggressively.
61 countries on
feet. There were a few law firms and legal 6 continents
service firms that left space for about 17,600 Westerville had strong absorption with Credit
square feet total. Karlsberger, central Ohio’s Union taking 14,000 square feet at 501 Schrock, United States: 125
taking space at 6363 Presidential Gateway, and Canada: 38
fourth-largest architecture firm, closed its doors
Latin America: 18
after 83 years in business. The firm left 30,000 Stanford Brown University signing a ten-year, Asia Pacific: 214
square feet at 99 Main Street. 30,000-square-foot deal at 2800 Corporate EMEA: 117
Exchange Drive.
• $1.5 billion in annual revenue
In terms of positive absorption, there were two
In Worthington, a portfolio of properties on • 978.6 million square feet under
larger footprint law firms who leased space at
management
250 Broad Street and 10 Broad Street for 16,000 Busch Boulevard sold at the very close of the
third quarter. 6460 Busch Boulevard, 6660 • Over 12,500 professionals
and 17,100 square feet respectively. Strategic
Public Partners leased 15,000 square feet at 88 Doubletree Avenue, and 6600 Busch Boulevard
Broad Street. sold for $1.5 million, which is roughly $13 per GREATER COLUMBUS REGION:
square foot. Richard B. Schuen SIOR CCIM
Rennovations are underway at both 51 High CEO | Principal | Columbus
8800 Lyra Drive
Street which will be available in January 2012 WEST MARKET Suite # 150
and 232 N High Street for which the completion Columbus, Ohio 43240
The west submarkets, are Arlington/Grandview
date is not finalized. TEL +1 614 410 5612
and Hilliard. In Hilliard, Indiana Wesleyan leased
22,422 square feet at 3455 Mill Run Drive. In
Two new office projects have been approved for
Grandview, leasing was led by insurance broker Leslie Hobbs
downtown. Nationwide Insurance has been
Willis Group Holdings, PLC. Willis leased 23,000 Marketing & Research Manager
approved for a 200,000 square foot, $26 million
square feet under a ten year deal. 8800 Lyra Drive
building on the corner of Nationwide Avenue and Suite # 150
Spring Street. The property could hold 1,000 Columbus, Ohio 43240
SOUTH MARKET
workers and would help ease the inflow of 1,400 TEL +1 614 410 5640
The south submarkets are the Southwest and
employees the firm is bringing into the CBD. The
the Southeast. Very little change occurred in
FBI will anchor Nationwide Realty’s new $10
these submarkets as these are among the Jonathan Badgley
million project at 425 W. Nationwide Blvd.
smallest least populated submarkets. Research Analyst
175 South Third Street
NORTH COLUMBUS MARKET Suite # 285
EAST MARKET
The north submarkets are Dublin, Powell, Polaris, Columbus, Ohio 43201
The east submarkets are the East side, Easton,
TEL +1 614 437 4495
North Central, Worthington, and Westerville. In Gahanna/Airport, and New Albany. Construction
Worthington, DZ has completed a 34,000 square in New Albany has been steady.
foot expansion of their datacenter. In other
construction news, Daimler announced plans for In Easton, McGraw Hill has left 36,000 square
new construction in Westerville. Daimler and feet out of 1 Easton Oval and they may be leaving
Casto are seeking approval for rezoning of 20.7 more space, up to 30,000 square feet. In East, This document/email has been prepared by Colliers
acres near Africa Road and Polaris Parkway. Safe Auto moved their calling center operation International for advertising purposes. Colliers
The plans call for the construction of a pair of out of 3861 Broad Street, leaving 47,000 square International statistics and data are audited annually and
may result in revisions to previously reported quarterly
117,152-square-foot office buildings and develop feet. Positive leasing was driven by Estate and final year-end figures. Sources include Columbus
four retail parcels. Information Services who took 27,000 square Dispatch, Business First, Xceligent, and the Wall Street
Journal.
feet of 3435 Stelzer Road.
Accelerating success.
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