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San Diego Office MarketEconomic Trends

Tom van BettenManaging Director Tenant Representation

San Diego Business Journal | Cushman & Wakefield 2

Market CycleThe vacancy for the entire office market in San Diego is 13.3% at year end, trending down.

San Diego Business Journal | Cushman & Wakefield 3

Market Update

+14%

San Diego Business Journal | Cushman & Wakefield 4

Notable Transactions

Vertex Pharmaceuticals

San Diego Business Journal | Cushman & Wakefield 5

Notable Transactions

ViaSat

San Diego Business Journal | Cushman & Wakefield 6

The Irvine Company - UpdateThe Irvine Company continues to focus on new development and reinvesting in its

current portfolio; adding amenities, remodeling lobbies and suites.

San Diego Business Journal | Cushman & Wakefield 7

The Irvine Company - Update

UTC • Rent growth of 4.5% over 2014, 58% increase since 2011• Currently over 92% leased• Only 1 full floor available in existing product  Downtown • Rent growth of 12.7% over 2014, 23% increase since 2011  • Currently over 96% leased• Only 1 full floor available (leases out for signature)

San Diego Business Journal | Cushman & Wakefield 8

Qualcomm - UpdateMultiple Qualcomm lease expirations lined up well with layoffs, as Qualcomm will let over 250,000 SF of leases expire in Q1 2016.  They also recently put additional space

on the market for sublease, and sold a building of 300,000 SF.

San Diego Business Journal | Cushman & Wakefield 9

Workplace Trends

San Diego Business Journal | Cushman & Wakefield 10

Workplace Trends

Less Distractions

San Diego Business Journal | Cushman & Wakefield 11

Flexible Office

Workplace Trends

San Diego Business Journal | Cushman & Wakefield 12

TvB’s Tips

Survey

THE MAIN 3

Sublease

Take Your Time

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Tom van BettenManaging Director

Tenant Representation