New York Quarterly SNAPSHOT -...

Accelerating success.New York Capital Markets

Market Overview

4Q 2016

New York Quarterly

SNAPSHOT

New York Quarterly

SNAPSHOT4Q 2016

MANHATTAN CAPITAL MARKETS

2

Market Snapshot

Market Snapshot

- Manhattan Capital Markets

- Manhattan Leasing Market

New York Quarterly

SNAPSHOT4Q 2016


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Overview

Near Record Activity Continues in 2016: › 2016 was an exceptionally strong sales year for Manhattan, 502 deals totaling $42.9 billion. Multifamily Dominates Activity: › Quickly has become the most active investment asset class, accounting for 217 transactions, or 43% of all activity.› Garnering attention from institutional investors across the globe due to the supply/demand imbalance and secure cash

flow. Capital Values Continue Steady Upward Trend: › Nearly every product type has witnessed an increase in year-over-year capital values. › Midtown Class A office values up nearly 3% to $1,124 per square foot with an average cap rate of 4%. › Midtown Class B office values up 14% to $882 per square foot this year with an average cap rate of 3.5%.› Land pricing under pressure due to condo supply side concerns and challenging construction financing.Condominium Pricing Sets New Records: › Manhattan condos at record $2,209 PSF after 13% year-over-year increase. Large Transactions Capture Significant Market Share: › 16 transactions greater than $500 million, eight of which exceeded $1 billion. › The 16 largest deals of the year accounted for $16.5 billion, or 38%, of all dollar volume. › Seven of those were partial interest deals, reflecting owner confidence in the long-term appreciation of New York City

real estate. Foreign Participation Continues: › 2015 saw foreign participation rise to 45% ($15 billion) — more than double the historic 10% to 20% range. › 2016 saw 40% ($17.28 billion) of investment attributed to foreign investors.

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2016 Closed Manhattan Investment Sales Activity

Total Size

Product Type # of Deals

% of Deals

Square Feet

Units / Keys

TotalDollars

% of Dollars

Average Deal Size

Avg / SF or Unit or Key

Multifamily 217 43.2% 13,862,152 16,545 $8,011,800,075 18.7% $36,920,738 $643 / $571,073

Office 90 17.9% 37,815,240 $21,867,803,003 50.9% $242,975,589 $898

Land 90 17.9% 7,728,899 $4,684,796,511 10.9% $52,053,295 $665

Retail 51 10.2% 1,555,457 $2,474,926,758 5.8% $48,527,976 $2,317

Hotel 36 7.2% 8,167 $4,083,442,637 9.5% $113,428,962 $585,501

Other 18 3.6% $1,821,464,600 4.2% $101,192,478

TOTAL 502 100% 60,961,748 24,712 $42,944,233,585 100% $85,546,282

Under Contract 10 $2,085,750,235

Closed & Under Contract $45,029,983,820

Psf calculations exclude leasehold interest positions, bankruptcy auctions and multifamily rent controlled portfolios.

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2016 Manhattan Multifamily Investment Sales ActivityBy Submarket

Uptown Midtown South Midtown Downtown Total

Total # of Deals 101 59 52 5 217

Total Units 6,775 3,367 4,792 1,611 16,545

Total Dollar Volume $2,007,352,232 $2,370,659,619 $2,725,282,009 $908,506,215 $8,011,800,075

Avg Price Per Unit $339,488 $704,086 $779,090 $563,939 $571,073

Total Square Feet Sold 5,406,136 2,927,298 4,166,043 1,362,675 13,862,152

Avg Deal Size $19,874,774 $40,180,672 $52,409,269 $181,701,243 $36,920,734

Avg Price PSF $373 $818 $863 $667 $643

Uptown properties are north of 125th Street

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2016 Manhattan Office Investment Sales Activity

Midtown Class A Midtown Class B Midtown South Downtown Uptown Total

Total # of Deals 14 32 26 15 3 90

Total Sq Ft 17,241,928 4,023,191 3,426,114 11,505,409 195,567 37,815,240

Total Dollar Volume $12,622,664,000 $2,662,868,250 $2,867,518,970 $3,891,751,783 $96,000,000 $22,140,803,003

Avg Price PSF $1,124 $882 $837 $565 $491 $898

Avg Deal Size $901,618,857 $83,214,632 $110,289,191 $259,450,118 $32,000,000 $246,008,922

Midtown Midtown South Downtown Uptown Total

Total # of Deals 52 29 5 4 90

Total Sq Ft 4,857,233 1,286,749 358,582 1,226,335 7,728,899

Total Dollar Volume $3,007,832,876 $1,144,008,065 $225,000,000 $307,955,570 $4,684,796,511

Avg Price PSF $633 $889 $669 $402 $665

Avg Deal Size $57,842,940 $39,448,553 $45,000,000 $76,988,892 $52,053,295

2016 Manhattan Land/Redevelopment Investment Sales ActivityBy Submarket


By Submarket

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2016 Manhattan Retail Investment Sales Activity

Midtown South Midtown Downtown Uptown Total

Total # of Deals 29 13 5 4 51

Total Sq Ft 375,790 659,122 56,645 464,900 1,556,457

Total Dollar Volume $956,196,840 $1,277,649,891 $92,650,000 $148,430,027 $2,474,926,758

Avg Price PSF $2,632 $3,4941 $1,635 $503 $2,317

Avg Deal Size $32,972,304 $98,280,760 $18,530,000 $37,107,506 $48,527,795

Midtown Midtown South Downtown Total

Total # of Deals 19 12 5 36

Total Keys 4,289 2,895 983 8,167

Total Dollar Volume $2,453,129,134 $1,142,797,718 $487,515,785 $4,083,442,637

Avg Price Per Key $690,907 $450,189 $532,513 $585,501

Avg Deal Size $129,112,059 495,233,143 $97,503,157 $113,428,962

By Submarket

By Submarket2016 Manhattan Hotel Investment Sales


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Unemployment Rate – US/NYC MSA/Manhattan

US: 5.0%

NYC MSA: 5.4%

Manhattan: 4.8%

% U

nem

ploy

men

t

3.5

4.5

5.5

6.5

7.5

8.5

9.5

10.5

2000Q4

2001Q3

2002Q2

2003Q1

2003Q4

2004Q3

2005Q2

3Q2006

2Q2007

1Q2008

4Q2008

3Q2009

2Q2010

1Q2011

4Q2011

3Q2012

2Q2013

1Q2014

4Q2014

3Q2016

United States NYC Metropolitan Statistical Area Manhattan

Source: Moody’s.com

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71 Million SF

62 Million SF58 Million SF

10 Millions SF

21 Million SF

11.56 Million SF

1960s 1970s 1980s 1990s 2000s 2010 - Present

Net addition to supply over past 3 decades (1990’s + 2000 + 2010-Present) = 3.9 MSF per decade. New office development is concentrated in Downtown and the Far West Side.

Squa

re F

eet (

milli

ons)

11 Times Square – 1,100,000200 West Street – 2,000,000450 W 14th Street – 135,00051 Astor Place – 430,00050 W 47th Street – 745,000540 Madison – 300,000 1 WTC – 3,500,0004 WTC – 2,300,000250 West 55th St – 1,050,0007 Bryant Park – 470,000

New York Market Perspective

Average = 63.6 MSF per decade

Average = 14.2 MSF per decade

Inventory reduced by 31 MSF due to World Trade Center (15 MSF) and residential

conversions (16 MSF)

270 Park Ave - 1,132,460

1285 Sixth Avenue - 1,473,950

643 West 43rd St - 1,128,000

1 Chase Manhattan Plaza- - 1,898,158

399 Park Ave - 1,250,000

60 Broad St - 1,014,041

200 Park Ave - 2,254,274

1290 Sixth Avenue - 1,987,328

277 Park Ave - 1,529,945

1301 Sixth Avenue - 1,764,411

59 Maiden Ln - 1,043,007

245 Park Ave - 1,611,046

26 Federal Plaza- 1,109,969

140 Broadway - 1,200,000

909 Third Ave - 1,125,000

767 Fifth Ave - 1,637,379

1345 Sixth Avenue - 1,640,000

2 Penn Plaza- - 1,500,000

1 NY Plaza- -2,103,750

345 Park Ave - 1,600,519

450 West 33rd St - 1,500,000

153 East 53rd St - 1,492,860

1166 Sixth Avenue- 1,430,000

1211 Sixth Avenue- - 1,734,105

1 Bankers Trust Plaza- - 1,363,334

1633 Broadway - 2,240,000

1 Penn Plaza- - 2,072,136

1 Liberty Plaza- - 2,121,437

55 Water St - 3,600,000

9 West 57th St - 1,500,000

1114 Sixth Avenue- - 1,310,000

1185 Sixth Avenue- - 1,000,000

1221 Sixth Avenue- - 2,200,000

1251 Sixth Avenue- - 1,893,652

1515 Broadway - 1,417,450

1 WTC - 3,958,091

2 WTC - 3,958,091

2 NY Plaza- - 1,345,919

237 Park Ave - 1,142,196

55 East 52nd St - 1,050,000

101 Park Ave - 1,137,000

590 Madison Ave - 1,016,413

335 Madison Ave - 1,046,984

85 Broad St - 1,040,000

101 Barclay St - 1,140,000

787 Seventh Ave - 1,429,610

1 WFC - 1,461,365

3 WFC - 2,300,000

4 WFC - 1,600,000

2 WFC - 2,200,000

7 WTC - 1,855,000

Financial Sq - 1,000,301

825 Eighth Ave - 1,550,212

388 Greenwich St - 1,600,000

60 Wall St - 1,587,849 1585 Broadway - 1,220,732

4 Times Square - 1,477,631

383 Madison Ave - 1,200,000745 Seventh Ave - 1,036,7415 Times Square - 1,062,203Columbus Center - 1,016,000 731 Lexington Ave – 1,300,000300 Madison Ave - 1,200,0007 Times Square - 1,000,000 7 WTC - 1,700,000 1101 Sixth Avenue- - 2,100,000 620 Eighth Ave - 1,500,000

Note: Total construction square footage includes all new office buildings above 100,000 SF. Source: Colliers International Research

New Office Building Construction by Decade

New York Quarterly

SNAPSHOT4Q 2016


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New York Market Perspective

Year Expected Delivery (SF)Additions to Supply (%)

Pre Leased SF

Net New Space Available

2017 2,551,000 0.5% 561,000 1,990,000

2018 5,800,000 1.1% 2,369,000 3,431,000

2019 5,081,000 1.0% 3,515,000 1,566,000

2020 640,000 0.1% 0 640,000

2021 1,623,000 0.3% 223,000 1,400,000

SUBTOTAL PRE 2021

15,700,000 3.0% 6,672,000 9,028,000

2022 & Beyond 18,100,000 3.5% 1,700,000 16,400,000

NYC is witnessing a much needed construction boom to modernize its office stock. Despite the new construction, the additions to supply equal less than 6% of the total market.

Pipeline of New Office Building Construction by Year

Source: Colliers International Research

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Manhattan

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

18,000,000

2017 2018 2019 2020 2021 2022 TBD

Squa

re F

eet

Uncommitted New Construction/Renovation Planned Construction Future Known Availability

Numerous planned construction projects are awaiting anchor tenants

Availability Horizon (4Q2016)

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Sales Activity Price PSF

US

$ bi

llion

s

Annual Investment Sales Activity

111 78 58 83 165 170 259 346 191 66 136 245 275 223 442 589 502

$10.3 $12 $8.5 $10 $15 $21 $35 $48.5 $19.6 $3.5 $12.4 $25 $25 $30.2 $39.8 $60.3 $42.9

# of Deals

Volume ($B)

# of Class A Transactions

Total

Midtown and Midtown South

Downtown

Weighted Average Midtown Class A Office Price PSF

Numbers in parentheses represent the number of Class A transactions each year. In 2015, 8 of the 21 Class A transactions were for a partial interest. In 2016 7 of the Class A sales were for a partial interest. Source: Colliers International Research

$340(12)

$421(9)

$443(15)

$475(17)

$434(14)

$549(15)

$749(28)

$875(41)

$941(15)

$335(2)

$590(10)

$836(7)

$743(7)

$1,083(15)

$1,344(6)

$1,096(21)

$1,124(14)

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$0

$10

$20

$30

$40

$50

$60

$70

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

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REIT13%

Foreign16%

Private Capital61%

Pension Fund10%

REIT15%

Foreign19%

Private Capital63%

Pension Fund3%

REIT 11%

Foreign 45%

Private Capital 44%

Based on YTD 2016 Sales of$42.9 Billion

NYC remains the primary investment market.Foreign activity remains strong, after a record participation rate in 2015.

Based on 2015 Total Sales of$60.3 Billion

Based on 2013 Total Sales of $30.2 Billion

Based on 2014 Total Sales of$39.8 Billion

Annual Investment Sales by Investor Profile

REIT3%

User 5%

Foreign40%

Private Capital46%

Pension Fund6%

Source: Colliers New York Capital Markets

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$7.7 B

$3,100 M

$1,730 M$1,400 M

$578 M $565 M $523 M $378 M $264 M $219 M $173 M $158 M $150 M $138 M $124 M $59 M $18 M$0

$1,000,000,000

$2,000,000,000

$3,000,000,000

$4,000,000,000

$5,000,000,000

$6,000,000,000

$7,000,000,000

$8,000,000,000

$9,000,000,000

Total Dollars Invested by Country

Foreign Capital Inflows – 2016

Source: Colliers New York Capital MarketsNote: The only countries to date with multiple Manhattan transactions are Canada (4), China (16) and Germany (3). Excludes Saudi Arabia which closed one deal for $1.4 Billion.

62 transactions = 12% of total transactions$17.28B = 40% of $ invested

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Midtown Class A Cap Rates vs. Rent Growth & 10-Yr Treasuries

Cap Rate

Interest rates witnessed the first meaningful increase in five years during Q4’16 both organically and through a Fed rate hike All signs point to an additional rate hike by the Fed during the first quarter of 2017.

7.30%7.58% 7.34%

6.34%

4.93% 4.64%

4.04%3.55%

4.45%

5.85%5.24%

4.40% 4.60%4.30% 3.88% 3.79% 4.00%

6.20%

5.40%5.10%

3.40%

4.70%

3.90%

5.10% 4.90%

3.90% 3.70%3.30%

2.90%

1.50%

2.10%2.50%

2.19%2.45%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

8.00%

9.00%

10.00%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

8.00%

9.00%

10.00%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Note: 10-Yr Treasury as of June for each year (does not include the spread) except 2016 which is year-end.

10-Yr Treasury

Y-O-Y rent growth 24% (4%) 11% (7%) 7% 4% 18% 29% 1% (27%) 1% 8% 3% 4% 2% 3% 2%


Weighted Average Cap Rates, 2000 – 2016

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Manhattan Class B Historical Office SalesMidtown Class B Historical Office Sales

$406

$591

$379

$481

$742$796

$0

$100

$200

$300

$400

$500

$600

$700

$800

$900

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

$ Volume Average Price PSF

Midtown South Class B Historical Office Sales

$214

$446

$107

$274

$387

$514

$0

$100

$200

$300

$400

$500

$600

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016


Downtown Class B Historical Office Sales

$314

$603

$480

$577 $581

$882

$0

$100

$200

$300

$400

$500

$600

$700

$800

$900

$1,000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016


$6 B

$5 B

$4 B

$3 B

$2 B

$1 B

$0 B

$6 B

$5 B

$4 B

$3 B

$2 B

$1 B

$0 B

$7 B

$6 B

$5 B

$4 B

$3 B

$2 B

$1 B

$0 B

Class-B office values continue to witness appreciation as tenants in the fastest growing industries seek space in vintage, loft style buildings clustered amongst other tenants in their respective industries.

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Average Land Sale Price PSF Average Condo Price PSF

$431 $428

$466

$410$357

$314

$375

$559

$596

$636$665

$1,142$1,225

$1,374

$1,210$1,167

$1,229$1,275

$1,369

$1,529

$1,959

$2,209

$0

$500

$1,000

$1,500

$2,000

$2,500

$0

$100

$200

$300

$400

$500

$600

$700

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Average land sales PSF Average condo PSF

Historical Land Sale Pricing vs. Residential Condominium Pricing

56 71 43 5 22 57 70 39 102 130 90

4,186 6,969 5,713 4,029 5,240 5,05 4,330 5,021 5,050 5,147 5,433

# of Land Sales

# of Condo Sales

Residential condominium pricing represents the average for both new and resale condominium units. Source: Elliman Decade Report and Colliers New York Capital Markets

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$421$467 $462 $437

$398$332

$382$440

$735$795

$889

14

2

32

59

29

0

10

20

30

40

50

60

70

$0

$100

$200

$300

$400

$500

$600

$700

$800

$900

$1,000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Price Per SF Number of deals

Midtown South

Historical Land Sale Pricing by Submarket

$450 $445$472

$402$354

$385$355

$662

$600

$601$633

33

3

23

51

45

0

10

20

30

40

50

60

$0

$100

$200

$300

$400

$500

$600

$700

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Price PSF Number of deals

$371

$293

$451

$0

$308

$214

$415$448

$501$517

$669

9

0

15

20

5

0

5

10

15

20

25

$0

$100

$200

$300

$400

$500

$600

$700

$800

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016


$431 $428$466

$410

$357$314

$375

$559$596

$636 $665

56

5

70

130

90

0

20

40

60

80

100

120

140

$0

$100

$200

$300

$400

$500

$600

$700

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016


Midtown

Downtown Overall Market


New York Quarterly

SNAPSHOT4Q 2016


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Notable Manhattan Transactions

1250 BroadwayOffice721,000 SFSeller: Jamestown Buyer: Global Holdings $565,000,000$784 PSFBlockfront between West 31st

and 32nd Streets 84% occupied Anchor tenant is Visiting Nurse

Service, who occupy 320,000 square feet through 12/18.

VNS will be leaving the property upon their expiration.

Acquisition was financed with a $330 MM loan from HSBC.

133 Greenwich Street (Courtyard by Marriott)Hotel317 UnitsSeller: Hidrock RealtyBuyer: Union Investment $206,000,000$649,842 per UnitLocated at Thames and

GreenwichThe brand new hotel was

designed by Peter Poon and is situated at the foot of the World Trade Center.

Hidrock will retain the retail component of the property totaling 2,600 square feet.

63 Wall StreetMultifamily476 Units Seller: MetroLoft JV DTH

CapitalBuyer: Rockpoint Group$239,114,603$502,342 Per UnitCorner of Wall and Hanover4.8% going-in cap rate.Average in-place rent is $60.11

per square foot. Benefits from a 421-g through

June 2020.Unit mix includes 170 studios,

143 studios with office, 124 one bedrooms, 22 one bedrooms with office and 17 two bedrooms.

441 Ninth Avenue Land/Development 515,000 BSFSeller: Emblem HealthBuyer: Cove Property Group JV

Baupost$330,000,000$641 PBSF Occupies a full City block

fronting Ninth Avenue between 34th and 35th Streets.

Building is currently home to Emblem Health, who occupies the 423,000 SF building and will move out in one year.

Site can be redeveloped to 515,000 SF.

Plans call for a full redevelopment with portion of the ground floor to be converted to retail.

371 Seventh Avenue (Stewart Hotel)Hotel618 KeysSeller: Pebblebrook Hotel TrustBuyer: A&B Sons JV Sioni

Group JV Highgate$217,500,000$351,942 per key4.1% going-in cap rate.The hotel totals 470,000

square feet ($460 per square foot).

The hotel ownership was consolidated by Pebblebrookand then sold.

September 2016 September 2016 September 2016 December 2016 December 2016

4Q 2016

New York Quarterly

SNAPSHOT4Q 2016


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Notable Manhattan Transactions

67 Wall Street (The Crest)Multifamily317 UnitsSeller: Metroloft JV DTH

Capital Buyer: Rockpoint Group$182,391,612$575,638 Per UnitLocated on the corner of

Pearl and Wall. 4.8% going-in cap rateProperty benefits from a

421-g through June 2020.

Unit mix includes 131 studios, 91 one bedrooms, 79 one bedrooms with office, 25 two bedrooms and 5 two bedrooms with office.

53 West 36th StreetOffice82,196 SFSeller: Hidrock Realty JV

AssurantBuyer: Effy Jewelery$54,000,000$657 PSFBetween Fifth and Sixth

Avenues4.3% going-in cap rate. In-place rents are $44.00

per square foot. Property recently

underwent a $3.2 million capital improvement program.

75% of the square footage rolls in the next five years.

240 West 35th Street Office 165,720 SFSeller: RPW GroupBuyer: ATCO Properties$108,000,000$652 PSFBetween 7th and 8th Avenues. 96% occupied4.35% going-in cap rate. 65% of the square footage

rolls within the first five years.

Recently renovated corridors, elevators and restrooms.

292 MadisonOffice 203,000 SFSeller: Marciano BrothersBuyer: Vanbarton Group$180,000,000$887 PSF Located at 41st Street and

Madison Avenue. 2.1% going-in cap rate.Major tenants at the

property include Buford Capital and Hogg Robinson.

The acquisition was financed with a $75 million loan from DB.

145 East 57th Street Office and Retail64,190 SFSeller: MIPBuyer: ABS Partners JV

Benenson$62,750,000$978 PSFBetween Lexington and

Third Avenues. Office space is 63%

occupied 2.5% going-in cap rate.The retail space is leased to

Hammacher Schlemmerat $200 psf.

The property is undergoing a $10 million renovation.

September 2016 October 2016 December 2016 October 2016 October 2016

4Q 2016

New York Quarterly

SNAPSHOT4Q 2016


21

Market Snapshot

Market Snapshot

- Manhattan Capital Markets

- Manhattan Leasing Market

New York Quarterly

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Overview

Leasing Activity Up 5.5% Y-O-Y:› At 33.10 MSF, Manhattan full-year leasing activity was 5.5% higher year-over-year. › 2016 also surpassed full year leasing from eight of the last ten years. › Only 2014’s 37.38 MSF and 2013’s 33.92 MSF topped leasing volume in 2016. FIRE (financial services, insurance and real estate) sector leads the way: › Accounting for 31% of all activity › Major FIRE activity in 2016 included UBS’ renewal at 1285 Avenue of the Americas, Two Sigma Investments’ 217,000

SF renewal/expansion at 100 Avenue of the Americas and a total of 808,000 SF of new leases and expansions from WeWork throughout Manhattan.

Asking Rents Continue Upward Climb: › At an average of $73.24/ SF, asking rents were 2.4% higher since year-end, 2015.› Manhattan’s Availability Rate Ticked Up 0.7pp (percentage points) to 10.3%: › Large blocks of available space were added during the year, mostly as a result of new construction/major renovations. › Sublet availability was higher for the year by 0.4pp to 1.8% but has remained at or below 2% for the last six years.First Year of Negative Net absorption Since 2009: › The market witnessed (3.79 MSF) of absorption, relatively small in comparison to 2009 when it was (10.07 MSF). › The four largest deals in 2016 were renewals or sale-leasebacks resulting in little impact to the absorption numbers. Demand in 2016 was Helped by Job Creation and Low Unemployment: › Between November 2015 and November 2016, more than 61,000 new private sector jobs (a 1.6% increase) were added

in New York City, higher than the 1.3% employment growth for New York State and on par with the 1.7% gain nationally during the same period.

› At 5.2%, New York City’s unemployment rate through November 2016 was stable over the last 12 months.

Sources: NYS Dept. of Labor, Colliers International Research

New York Quarterly

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23

Current Office Market Statistics

Market Inventory Availability Rate Average Asking Rent

Midtown 236,122,551 10.7% $82.39

Midtown Class A 203,429,082 11.0% $85.09

Midtown Class B 28,101,556 9.5% $60.09

Midtown South 165,618,649 8.4% $67.81

Midtown South Class A 40,343,741 7.8% $81.72

Midtown South Class B 84,916,879 8.9% $66.04

Downtown 104,384,942 12.3% $59.01

Downtown Class A 79,469,698 13.6% $60.25

Downtown Class B 21,217,844 8.9% $52.30

Manhattan 506,126,142 10.3% $73.24

4Q 2016

*Trophy designation is a subset of Class A

New York Quarterly

SNAPSHOT4Q 2016


24

Yearly Comparison by Major Market

11.2%

9.7%

15.6%

11.7%

10.7% 7.9%

11.7%

10.0%

10.0% 7.0%

12.6% 9.6%

10.7% 8.4%

12.3% 10.3%

0%2%4%6%8%

10%12%14%16%18%

Midtown Midtown South Downtown Manhattan

2013 2014 2015 2016

Overall Availability Rates

$69.73 $55.32

$48.60

$60.46

$74.78 $61.50

$52.23

$66.52

$80.61 $66.07

$57.63

$71.50

$82.39 $67.81

$59.01

$73.24

$0$10$20$30$40$50$60$70$80$90


2013 2014 2015 2016

Overall Asking Rents

Class A Availability Rates

11.8%

12.5%

17.7%

13.4%11.3%

6.4%

13.3% 11.3%

10.3% 6.3%

14.4% 10.9%

11.0% 7.8%

13.6% 11.2%

0%2%4%6%8%

10%12%14%16%18%20%


2013 2014 2015 2016

Class A Asking Rents

$71.25

$69.73 $51.80

$64.14

$76.65

$74.78 $54.10

$70.48

$83.37

$80.61

$58.70

$75.49

$85.09

$82.39

$60.25

$78.19

$0$10$20$30$40$50$60$70$80$90


2013 2014 2015 2016

New York Quarterly

SNAPSHOT4Q 2016


25

Landlord Concessions by Year

$50.84

$37.68

$48.82

$58.72

$63.10

$65.92

$51.15

$29.49

$54.79

$56.33

$61.86

$63.19

$0

$10

$20

$30

$40

$50

$60

$70

2011 2012 2013 2014 2015 2016

Midtown Downtown

$33.87

$29.46

$37.81

$49.61

$53.77

$48.98

$36.45

$30.74

$32.37 $25.27

$45.10

$32.16$22.51

$26.80

$35.21

$47.93

$46.50

$47.49

$0

$10

$20

$30

$40

$50

$60

2011 2012 2013 2014 2015 2016

Midtown Downtown Midtown South

7.8

5.5

7.3

7.8

9.4

9.6

7.9

5.8

9.7

14.2

9.7 9.1

0

2

4

6

8

10

12

14

16

2011 2012 2013 2014 2015 2016

Midtown Downtown

Tenant Improvements Free Rent

CLASS

A

5.6

4.5

6.3

6.4

6.5 5.8

6.8

6.0

3.6

4.4

5.1

5.5

4.6

5.5

5.9

8.0

6.9 6.3

0

1

2

3

4

5

6

7

8

9

2011 2012 2013 2014 2015 2016

Midtown Downtown Midtown South

PSF

PSF Months

Months

CLASS

B

New York Quarterly

SNAPSHOT4Q 2016


26

Asking Rent vs. Starting Rent

14.4%

3.3%

9.5%

10.5%

7.4% 7.3%7.2%7.6%

4.4%

0%

2%

4%

6%

8%

10%

12%

14%

16%

Midtown Midtown South Downtown

Star

ting

Ren

t vs.

Ask

ing

Ren

t Gap

4Q16 3Q16 4Q15

New York Quarterly

SNAPSHOT4Q 2016


27

Historical Absorption and Leasing Activity

Absorption Leasing Activity

1.92M .45M

8.44M

4.25M

-3.85M

-4.M

-2.M

.M

2.M

4.M

6.M

8.M

10.M

Squa

re F

eet

M

5M

10M

15M

20M

25M

30M

35M

40M

Squa

re F

eet

Midtown Midtown SouthDowntown 10 Year Rolling Average: 29.0 MSF

New York Quarterly

SNAPSHOT4Q 2016


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Midtown Class A Asking Rent

$48.19

$95.00

$85.09

$66.39

$93.05

$40

$50

$60

$70

$80

$90

$100

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Recorded Asking Rent CPI Adjusted 2000 Rent

Adjusted for Inflation (CPI)

New York Quarterly

SNAPSHOT4Q 2016


29

Midtown and Downtown – Class A Asking Rents

$0

$10

$20

$30

$40

$50

$60

$70

$80

$90

$100

Aski

ng R

ent (

$/SF

)

Midtown Downtown2003–2007: rent increase

Midtown: +86% Downtown: +65% 2007–2009: rent decrease

Midtown: -33% Downtown: -21% 2009–2016: rent increase

Midtown: +41% Downtown: +52%

New York Quarterly

SNAPSHOT4Q 2016


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Leases greater than 100,000 SF

1,403,640 SF

7RENEWALS

0 SF

0EXPANSIONS

2,150,941 SF

7RENEWAL & EXPANSIONS

4,540,954 SF

16RENEWALS

487,434 SF

3EXPANSIONS

741,894 SF

4RENEWAL & EXPANSIONS

2016 2015

7,986,934 SF40

10,689,463 SF45

4,432,353 SF26

4,919,181 SF22

3,554,581 SF14

TRANSACTIONS

NEW/RELOCATIONS

RENEWALS & EXPANSIONS5,770,282 SF

23

New York Quarterly

SNAPSHOT4Q 2016


31


Leasing Activity

By Number of Deals

By Share of Activity

*Excludes deals under 5,000 SF.

62%16%

15%

3%4%

5,000 - 14,999 SF 15,000 - 24,999 SF 25,000 - 49,999 SF 50,000 - 99,999 SF 100,000 SF+

32%

25%

17%

13%

13%

67%

15%

11%

4%3%

New York Quarterly

SNAPSHOT4Q 2016


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Taking Rents

88 91 100126

155131

42 3039

33

58

417

2

816

7

13

0

50

100

150

200

250

2011 2012 2013 2014 2015 2016

Num

ber o

f Dea

ls

$75.00 - $99.99 $100.00 - $149.99 $150.00 +

New York Quarterly

SNAPSHOT4Q 2016


33

Stephen ShapiroSenior Managing Director+1 212 716 [email protected]

Yoron CohenVice Chairman+1 212 716 [email protected]

Scott LathamVice Chairman+1 212 716 [email protected]

Colliers New York Capital Markets

Richard BaxterVice Chairman+1 212 716 [email protected]

Jason GoldSenior Managing Director+1 212 716 [email protected]

Contact Information

New York Quarterly SNAPSHOT -...

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