Q1-2011-Chicago Downtown Office Market Report

8/7/2019 Q1-2011-Chicago Downtown Office Market Report

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TRENDING TOWARDS RECOVERY

As represented by the matrix below, Chicago’s vacancy rate o 6. percent resides above the nationaaverage o 4. percent, as do a large majority o the Top 5 metropolitan areas in the nation. Howev

o these 5 are either seeing rents bottoming out or increasing, a positive sign or the commercreal estate market.

Increased deal velocity and a rapid resurgence in capital markets activity also seem to indicate that

the period o extreme distress and depressed conditions experienced over the last two years isgradually subsiding. While it’s not anticipated that the market will rebound with any major convictiocommercial real estate conditions as a whole seem to be marginally improving.

International events experienced during the rst quarter o the year have added a bit o uncertaintywith respect to the global economic recovery, but overall the general outlook is one o guardedoptimism. On a macro level, concerns about job growth, housing market conditions, increasing oprices, and impending debt maturities on commercial properties remain at the ore ront o decisiomakers’ minds. These concerns will likely translate to an occasionally bumpy road to ull recoveduring the balance o the year. However, once job growth can sustain, the real estate market shouldgain more de nitive momentum as the year progresses, both on a national and local level.

The rst quarter o the year opened on a relatively optimistic note othe Chicago CBD with modest positive demand and an ever stabilizinvacancy rate, suggesting the local market is beginning to recover romthe depths it hit during the worst o the recession.

Signs o Li e

MARKET INDICATORSOverall Chicago CBD

4Q 2 Q 2

VACANCY RATE 6. % 6. %

BSORPTION (SF) 57, 6 2 ,274

RENTS $ . $ .2

INVENTORY 4 ,752, 72 4 ,752, 72

Atlanta

BostonHouston

Los Angeles

New York City

Washington DC

Miami

Philadelphia

Dallas

Detroit

Phoenix

San FranciscoSeattle

San Diego

(800,000) (600,000) (400,000) (200,000) 0 200,000 400,000 600,000 800,000

National Average: 14.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0% ABOVE AVERAGE VACANCY | NEGATIVE YTD ABSORPTION ABOVE AVERAGE VACANCY | POSITIVE YTD ABSOR

BELOW AVERAGE VACANCY | NEGATIVE YTD ABSORPTION BELOW AVERAGE VACANCY | POSITIVE YTD ABSOR

CHICAGO

RENTAL RATE TRENDS Increasing Bottoming No clear directionDeclining

MAJOR U.S. MARKET TRENDS MATRIX

RESEARCH REPORT | FIRST QUARTER 2011 | DOWNTOWN CHICAGO | O

COLLIERS INTERNATIONAL |

CHICAGO

Q | DOWNTOWN OFFICE

OFFICE MARKET OVERVIEW



VACANCY AND ABSORPTION

As the rst period o the year came to a close, vacancy hovered around 6. percent or the thirconsecutive quarter. While overall vacancy levels in the Chicago CBD remain elevated above the year historical average o 4. percent, the consensus between landlords and tenants is thatstabilization in the market has been achieved and barring any dramatic events, a slow and sustainedrecovery is anticipated over the next 2 to months. Sublease vacancy has allen substantially ovthe last several quarters to .7 percent, down rom the 2. percent rate posted at the peak in ourthquarter o 2 9, a sign that companies have halted the trend o rapidly disposing excess space.

For the ourth consecutive quarter, the CBD has witnessed positive absorption, albeit on a verymodest basis, indicative o relatively at market conditions. Positive 2 ,274 square eet o absorption was reported in the CBD or the rst quarter. The strongest submarket during the quarterwas the West Loop, posting positive 264,2 square eet o net absorption as a result o increase

demand in all three building classes. The Central Loop’s Class C sector ared the worst during thquarter posting negative 2, square eet o net absorption, thus bringing the submarket’s totanegative 25 ,9 square eet or the quarter.

Shadow space remains one o the most in uential actors to the market’s recovery, de ned as spacethat is currently leased by tenants but is not ully utilized. In past quarters, many tenants attemptedto shed excess space on the sublease market or reduce space by negotiating contractions directlywith landlords. Although that trend has recently subsided, some companies still continue to hold ontospace that is not being entirely occupied. Tenants will need to grow into this space prior to the marketseeing substantial absorption resulting rom expansions.

NET ABSORPTION & VACANCYCENTRAL BUSINESS DISTRICT

S q u a r e

F o o

t a g e V

a c a n c y( %)

-

Source: Costar; Colliers International Research

3,466,7373,698,456

575,676

-2,257,280

-77,692

28,274

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

-3,000,000

-2,000,000

-1,000,000

0

1,000,000

2,000,000

3,000,000

4,000,000

2006 2007 2008 2009 2010 2011 YTD

15.30%

12.70%11.30%

15.20%16.00% 16.00%

LEASE ACTIVITY

The rst quarter started o with a measurable increase in leasing activity. The top ve reported

leasing transactions included expansions, which will account or approximately 29 , square o pure net absorption in uture quarters. Some o the increased market activity experienced durinthe quarter was ueled by demand that had been suppressed in prior quarters when tenants weremuch more hesitant to make real estate related decisions. The largest deal came rom Groupon’s

5 , -squareoot expansion at E. Wacker Drive, bringing its total occupancy at the buildin96, square eet. The ast-growing company sought space at the building on a short-term bas

through May o 2 2. Groupon’s rapid expansion is representative o the ast-paced growth recenseen within the social media industry. As this sector continues to grow, the Chicago CBD is likely tbe the bene ciary o absorption created by uture expansions o other social networking companisuch as LinkedIn, Twitter and Sprout Social.

• The Chicago CBD market postedrelatively at demand with minimalpositive absorption during the rstquarter o the year.

• Investment sales o erings increased

sharply during the quarter with a totalo ten Class A and B properties beingmarketed or sale and another twoproperties currently under contract orsold during the quarter.

• Deal velocity picked up during the rstquarter and the top ve leasingtransactions were expansions, a trendthat suggests decision makers arebecoming more con dent in the utureo the economy.

• Overall rents declined slightly while

Class A rents increased during thequarter and while a tightening in TenantImprovement Allowances can be elt insome quality sectors o the market,concessions as a whole remain steady.

• The West Loop and River Northsubmarkets witnessed positiveabsorption during the quarter, helpingto o set the negative absorptionexperienced in the other three CBDsubmarkets. All o the CBD’s trophyassets reside in River North and West

Loop, increasing their popularity withtenants and thereby making them thestrongest submarkets in the CBD.





CONSTRUCTION

Since the vertical expansion o E. Randolph Street in the early part o 2 , there have not beany new ofce tower deliveries to the CBD. Commercial construction in the CBD has halted as aresult o issues within the capital markets. Because o the lengthy lead time required to develop a newbuilding, it is not anticipated that the CBD will receive any new deliveries or at least the next three

our years. While current vacancy rates and market undamentals do not seem to support the additioo new inventory, the availability o quality high-view space is limited in the CBD, leaving active ltenants scrambling to nd potential relocation alternatives. The limited options or large tenants haled to rumors o potential developments being launched in the near uture i nancing or thprojects could be achieved. Regardless, the lack o new developments over the next several years wilallow the CBD a quicker recovery as a result.

NEW CONSTRUCTION DELIVERIES -

1,504,364

1,892,460 1,897,981

479,000

0

665,000

3,652,913

933,710

0 0 00

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013


S q u a r e

F o o

t a g e

TOP LEASING TRANSACTIONS OF FIRST QUARTER 2011

Tenant Address Class Submarket Deal Type Size (SF)

Groupon 303 E. Wacker Drive B East Loop Expansion 196,000PNC Bank 1 N. Franklin Street A West Loop Renewal/Expansion 116,000Tressler LLP 233 S. Wacker Drive A West Loop Renewal/Expansion 83,000Humana 550 W. Adams Street A West Loop Renewal/Expansion 83,000

Pierce & Associates 1 N. Dearborn Street B Central Loop Renewal/Expansion 78,000University Healthcare Consortium 155 N. Wacker Drive A+ West Loop New Lease 70,000

During the last year, the CBD has been able to somewhat temper contractions and increased subleaseavailabilities by generating new demand rom tertiary submarkets, the suburbs and other states. Inthe rst quarter, CBD landlords success ully recruited two additional outside companies to the markewhich will result in 4, square eet o uture absorption. University Healthcare Consortagreed to lease 7 , square eet at 55 N. Wacker Drive in a relocation rom the suburbs ansteelmaker, Evraz North America, will be moving its headquarters space rom Portland, Oregon int

, square eet at 2 E. Randolph Street. The CBD remains a very viable alternative or suburband out-o -state tenants seeking attractive economic lease terms that would not have been attainableat the height o the market just two years ago.

With the exception o the verticalexpansion o E. RandolphStreet in the early part o 2 ,there has not been any new ofcetower deliveries to the CBD.

P. | COLLIERS INTERNATIONAL

RESEARCH REPORT | FIRST QUARTER 2011 | DOWNTOWN CHICAGO | OFFICE



LARGE BLOCKS OF AVAILABILITY & TENANT DEMAND

Large block availability in the Chicago CBD currently consists o 24 blocks o Class A and B sptotaling 4.4 million square eet. Large blocks are de ned as those with , square eet agreater available on a direct basis. While 24 blocks may seem to re ect an abundance o large spacoptions, when dissected urther, it becomes apparent that the number o quality, well-located blocko space is actually very limited. Only 2 o the spaces reside in Class A assets and o those spac

only seven are located in the West Loop which is the submarket historically deemed most desirableby tenants due to its proximity to public transportation. Furthermore, only two o these West LooClass A spaces are located within the building high-rise, suggesting that this highly sought-a tesector o the market is very restricted.

Colliers is tracking approximately 4 tenants with occupancies o , square eet and greathat have expirations between 2 and 2 5 and are actively evaluating options in the market. Ttotal o these tenant occupancies is approaching 7. million square eet. I any o these tenants considering a possible relocation outcome, they will ace substantial competition or the very limitnumber o quality large blocks o space on the market.

O the 2 Class A spaces listed below, 4 o them are currently rumored to be in lease with tenantI these leases are consummated, the number o large blocks o space available or lease will becoeven more limited.

CLASS A AVAILABILITIES

Building Submarket Building Rise Size (SF) Status

130 E. Randolph Street East Loop High 185,042 Active200 E. Randolph Street East Loop High 380,207 Active300 E. Randolph Street East Loop High 142,123 In Lease111 W. Illinois Street River North Low 141,503 Active330 N. Wabash Avenue River North High 371,945 Active

540 W. Madison Street West Loop Low 161,028 In Lease227 W. Monroe Street West Loop Low 145,903 Active10 S. Wacker Drive West Loop Mid 156,134 In Lease

30 S. Wacker Drive West Loop Mid 131,999 In Lease500 W. Monroe Street West Loop Mid 106,475 Active500 W. Monroe Street West Loop High 369,207 Active233 S. Wacker Drive West Loop High 302,112 Active

blocks oCBD

Class A spaceconsisting o

, ,square eet

blocks o

West LoopClass A space

consisting o

, ,square eet

blocks o

West LoopHigh Rise

Class A spaceconsisting o

,square eet

5 West Monroe Streetis the only asset with twolarge blocks o contiguousClass A space available.





RENTSDuring the rst quarter, the direct average asking rental rate decreased slightly rom $ . to $ .per square oot gross. Over the last twelve quarters, the CBD has seen a trend o declining rentarates with the current average at approximately $2.65 per square oot less than the last peak rate inearly-2 . However, the recent decline o vacancy rates in downtown Class A buildings hencouraged some landlords to consider being more aggressive with their asking rates. The last

several quarters seem to indicate a slowdown in rental rate declines within the Class A sector asrates have held or even shown very slight increases on a quarter-over-quarter basis with the currentrate settling at $ 7. per square oot gross. On the contrary, Class B assets continue to see declinesin rental rates every quarter with the current average residing at $29. 6 per square oot. Class Bproperties were the hardest hit and saw the most negative absorption o all building classes over thelast two years. As a result, until vacancies stabilize in this sector, it’s expected that Class B Landlordswill re rain rom imposing rental rate increases in order to remain competitive and ll vacancies.

CAPITAL MARKETS

The start o 2 was met with a urry o new investment sales o erings in the Chicago CBD. Wcapital markets are not entirely corrected and some hesitation still remains, the heightened pricing seenlast year or core Class A assets has prompted several owners to recently test the market or other,more “core-plus” pro le assets.

During the quarter, six new Class A and B assets were placed on the market. W. Jackson Boulevartraded during the quarter rom P&S Limited Partnership to Berkley Properties. Additionally, PiedmoOfce Realty Trust gained majority ownership interest o 5 W. Monroe Street, a heavily leveragedClass A asset in the West Loop. The ormer owner, Broadway Partners, will maintain an interest in thproperty, but the ownership shi t should allow or the property to become marketable to tenants.

Capital markets have begun to change quickly as markets across the country are recognizing thatbottoming-out and cash-laden investors are anxiously looking to nd opportunities. The CMBS markhas rebounded, opening up access to more capital, but the real test o recovery will be best measuredby debt unded through banks as they source the largest amount o loans. While many banks will remacautious about lending until a urther improvement in occupancies and rents is witnessed, it seems debtis available or the right opportunities. Liquidity is expected to continue improving throughout tbalance o 2 . While core asset sales remain largely the ocus o investors, many are beginninentertain core-plus and value-add opportunities.

ASKING GROSS FACE RATECENTRAL BUSINESS DISTRICT

Class A

Average


$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

$35.00

$40.00

.

2006 2007 2008 2009 2010 2011

Class C

Class B

W. Jackson traded during the quarterrom P&S Limited Partnership to

Berkley Properties.





INVESTMENT SALES ACTIVITY -

0

10

20

30

40

50

60

70

53

2006

60

2007

15

2008

3

2009

13

2010

1

2011 YTD

Clas s A Clas s B Clas s C


-

N u m

b e r o

f S a

l e s

SALES TRANSACTIONS IN FIRST QUARTER 2011

Address Class Sale Price Size (SF) Price/SF Seller Buyer Status111 W. Jackson Boulevard B - 528,104 - P&S Limited Partnership Berkley Properties/David Werner Sold

UNDER CONTRACT

Address Class Sale Price Size (SF) Price/SF Seller Buyer Status

600 W. Chicago Avenue B $390,000,000 1,571,386 $248.18 Victor Gerstein et al CommonWealth REIT Under Contrac564 W. Randolph Street B - 86,231 - W.P. Carey & Co. Sterling Bay Properties Under Contract

MARKETED FOR SALE

Address Class Size (SF) Asking Price Price/SF Seller

70 W. Madison Street A 1,439,369 $340,000,000 $236.21/SF Hines311 S. Wacker Drive A 1,281,000 - - Mark KarasickPrudential Plaza(130 E. Randolph & 180 N. Stetson)*

A 2,168,494 - - Bentley Forbes

35 W. Wacker Drive** A 1,118,042 - - Piedmont Ofce Realty Trust541 N. Fairbanks Court A 783,491 - - Golub & Co.233 N. Michigan Avenue B 980,362 $190,000,000 $193.81/SF Parkway Properties

200 S. Wacker Drive** B 754,751 - - Behringer Harvard350 N. Orleans Street B 1,208,000 $255,000,000 $211.09/SF Vornado Realty Trust444 N. Michigan Avenue B 503,224 $100,000,000 $198.72/SF GLL Real Estate Partners200 W. Jackson Boulevard B 479,711 - - Apollo Investment Corp.651-659 W. Washington Street C 140,000 - - Horwitz & Company11 E. Adams Street C 160,793 - - Winthrop Realty Trust

32 W. Randolph Street C 226,666 $19,500,000 $86.03/SF David & Barbara Kalish400 S. Jeferson Street C 304,000 - - KBK II Partnership68 E. Wacker Drive*** C 78,775 - - Markwell Properties215 W. Ohio Street*** C 50,212 - - Bold Development

Locally, a number o assets have recently been success ul in recapitalization e orts. Several buildingthat were once considered completely unmarketable because they could not attract tenants due tobroken capital structures have been able to work through issues and have emerged as competitive onceagain. As more o these assets recti y their loan issues through restructuring and extensions and canthen re-establish themselves as viable options or tenants in the market, investors are likely to gain moreo an appetite or these value-add opportunities.

*Ownership stake or sale **Seeking joint venture ***Foreclosure /Distressed asset





The Central Loop has also remained attractive to law rms because o its proximity to the coursystem. Although it still serves as a hub or many nancial institutions and law rms, the emergenco the newest generation o ofce towers over the last decade has caused the submarket to lose somepopularity among tenants that it once easily retained. The large majority o assets that reside withithe Central Loop are Class B and C properties o an older vintage that o ten lack the modern amenitiand efcient oor plates o ered by the newer ofce towers that have been developed in the WestLoop and River North submarkets. As a result, there is a signi cant disparity between the health othe submarket’s Class A sector, which enjoys a single-digit vacancy rate and its Class B and Ccounterparts, which are currently su ering rom some o the highest vacancy rates in the entire CBD

The smaller oor plates o ered in the Central Loop also translate to ewer large contiguous blocspace options or sizable tenants. In act, the Central Loop currently does not have any spaco erings o , square eet or greater on a contiguous and direct basis, a circumstance that wlikely translate to a longer recovery time compared to those submarkets that are able to attract largetenants to ll vacancies and gain positive absorption quickly.

The Central Loop may not improve as quickly as some other submarkets in the CBD but its locatiowill keep it competitive on a long-term basis. Several Central Loop assets that were ormerconsidered distressed or challenged rom a capital perspective were either traded or able to negotiateloan restructures recently, making them competitive once again. Many Central Loop landlords arbetter capitalized than they were just a ew quarters ago and while they are being more aggressivewith concessions such as abatement and tenant improvements, they are trying to obtain higher acerates as a tradeo . Additionally, as more owners consider placing properties on the market, the needto keep rental rates up will become the primary ocus, particularly or the Class A sector.

Central LoopHistorically, the Central Loop’s reputation as Chicago’s core nanciadistrict has allowed the submarket to bene t rom the long-term

occupancy o many nancial services rms that lease ofce spacealong the LaSalle Street corridor.

MARKET INDICATORS

Central Loop

4Q 2 Q 2

VACANCY RATE 4. % 5.4%

ABSORPTION (SF) - , 5 -25 ,9

RENTS $ .4 $29.69

INVENTORY , 24,465 , 24,465

VACANCY

Overall vacancy in the Central Loop continued its climb during the rst quarter to 5.4 percent, urom 4. percent in the prior quarter. Despite posting an increase during the rst quarter, the

submarket’s Class A vacancy rate is remarkably low at 9.7 percent while Class B space is at2 .4 percent. Vacancy can be expected to continue its slight upward movement over the balance o2 , although signi cant increases are not anticipated.

ABSORPTION

Net absorption in the Central Loop ended the rst quarter at negative 25 ,9 square eet as a resuo negative absorption in all three building classes. During the quarter, UBS’s lease expired due tthe exercise o an early termination option at W. Madison Street, contributing to the negatiabsorption experienced in the Class A sector. The company relocated its 56, -squareoot spaceto N. Wacker Drive in the West Loop in order to consolidate its operations. Since the rst quarter o 2 , cumulative sublease absorption or the Central Loop amounts tnegative 74 , square eet. The East Loop, the next hardest hit submarket, has a cumulativamount o negative 2 , square eet o sublease absorption, indicating that tenants o the CenLoop have placed more sublease space on the market than any other submarket in the CBD by asigni cant amount.





NET ABSORPTION & VACANCYCENTRAL LOOP SUBMARKET

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

-1,000,000

-500,000

0

500,000

1,000,000

1,500,000

S q u a r e

F o o

t a g e V

a c

an c y( %)


505,662

1,188,463

351,376

-778,756

-168,355 -258,918

14.60

11.50

12.30

14.30 14.8015.40

2006 2007 2008 2009 2010 2011

CONSTRUCTION

No new construction was delivered to the Central Loop during the rst quarter. There are currently

no ofce developments planned in the submarket.

RENTS

The average direct gross asking rate decreased slightly during the rst quarter to $29.69 per squareoot rom $ .4 per square oot in the prior quarter. A wide spread exists between the asking ren

rates in Class A properties compared to Class B and C assets, an indication that owners o lowequality and less efcient buildings are eeling pressure to keep rates low in order to attract tenants.

ASKING GROSS FACE RATESCENTRAL LOOP SUBMARKET


$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

$35.00

$40.00

$45.00

2006 2007 2008 2009 2010 2011

Class B

Class A

Clas s C

Average





LEASE & SALES ACTIVITY

LEASE TRANSACTIONS - FIRST QUARTER 2011

Tenant Address Class Deal TypeSize(SF)

Pierce & Associates 1 N. Dearborn Street B Renewal/Expansion 78,000Thompson Reuters 1 N. Dearborn Street B New Lease 41,000AlphaMetrix InvestmentAdvisors

181 W. Madison Street A Renewal/Expansion 38,000

Morgan, Lewis & Bockius 77 W. Wacker Drive A Renewal/Contraction 36,000Sti el, Nicolaus & Co. 70 W. Madison Street A Renewal 36,000Healthcare In ormation &Management System

33 W. Monroe Street A New Lease/Expansion 33,000

Colliers International handled the one andonly sale o the rst quarter as WestJackson Boulevard was sold to BerkleyProperties/David Werner rom P&W

Limited Partnership.

SALES ACTIVITY - FIRST QUARTER 2011

Address Class Sale Price Size (SF) Price/SF Buyer Seller

111 W. Jackson Boulevard B - 298,735 - BerkleyProperties/David Werner

P&SLimitedPartnership





Prior to the economic downturn, several older generation buildings were converted to condos, givingthe submarket a residential component that helped to invigorate the area and draw more retailers intothe heart o the Loop. A ter the downturn, a weakened residential market has resulted in sever

ormer condo buildings, such as 55 W. Monroe Street, being marketed wholly or partially as ofcespace once again and adding vacancy to the ofce sector.

O all the submarkets, the East Loop has the greatest number o large, contiguous blocks o spacthereby possessing the highest vacancy rate in the entire CBD. There are currently ten blocks ospace containing , square eet or greater on a direct basis in the East Loop, seven o whiare in Class B properties.

Although these conditions may appear less than reassuring or the East Loop, it is important to notethat over the course o the last year, the East Loop could have ared much worse as several o its verlarge tenants, consisting o . million square eet in the aggregate, were actively evaluating maroptions due to impending lease expirations. These tenants could have potentially relocated out o thEast Loop, causing the submarket to see even larger spikes in vacancy. Instead, East Loop landlordswere able to retain several key tenants, including KPMG, Baker McKenzie and Crain Communicatiowhich have already signed new leases in East Loop properties. Additionally, Aon is in activnegotiations to renew at 2 E. Randolph Street while Integrys is rumored to be in lease or arelocation to the building as well.

During the rst quarter, the largest deal in the CBD occurred in the East Loop as Groupon expandedby 5 , square eet, bringing its total occupancy to 96, square eet at E. Wacker DHowever, this transaction was on a short-term basis through 2 2.

Once demand improves in the CBD and absorption becomes more consistently positive it will translatto improved conditions in the East Loop as well. However, the rate o recovery in the East Loop not expected to be at the same pace as other submarkets. The East Loop’s somewhat removedproximity to commuter rails and a large inventory o vintage properties has historically resulted i

ewer tenants relocating to the submarket which impedes its rate o recovery in a down cycle.

East LoopThe East Loop has a bit more diversity in terms o its tenant makeupthan its neighboring Central and West Loop submarkets. Although

some corporate tenants reside in the East Loop, the submarket remainsmost attractive to not- or-pro ts, universities and media and advertisingrms.

MARKET INDICATORS

East Loop

4Q 2 Q 2

VACANCY RATE 7. % . %

ABSORPTION (SF) , 52 - 5,729RENTS $ . $29.9

INVENTORY 26,2 2,926 26,2 2,926





NET ABSORPTION & VACANCYEAST LOOP SUBMARKET

S q u a r e

F o o

t a g e

V a c a n c y( %)


547,885

258,395

558,939

-1,321,835

28,377

-85,729

15.6014.60

12.30

18.5017.80 18.10

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

20.0

-1,500,000

-1,000,000

-500,000

0

500,000

1,000,000

2006 2007 2008 2009 2010 2011 YTD

VACANCY

The East Loop’s position as the submarket with the highest vacancy rate in the CBD was exacerbatedby negative demand during the rst quarter o the year. The overall vacancy rate increased rom 7percent in the ourth quarter o 2 to . percent at the end o the rst quarter o 2 . Clproperties have the highest vacancy rate at 22.7 percent although Class B properties aren’t per ormingmuch better with a vacancy rate o 2 . percent. With a sublease vacancy rate o 2. percent, the Ea

Loop has the most amount o space on the sublease market, next to the Central Loop.

ABSORPTION

Total net absorption or the rst quarter was negative 5,729 square eet, ueled entirely by negatidirect absorption. Although the East Loop does have a very high sublease vacancy rate, it has postedpositive sublease absorption or ve consecutive quarters, indicating that tenants are taking advantago the very attractive economics o ered by available sublease space. The rst quarter o the yeaended with positive 66,6 square eet o sublease space.

ASKING GROSS FACE RATESEAST LOOP SUBMARKET

CONSTRUCTION

No new construction was delivered to the East Loop during the rst quarter. There is currently nonew construction planned in the submarket.

RENTS

The average direct asking rental rate ell durithe rst quarter rom $ . per square oot$29.9 per square oot gross. Although othsubmarkets may begin to see some modes

increases in rental rates as 2 progresses, it not expected that East Loop landlords will begincreasing rates until absorption becomeconsistently positive, which is likely to be 2 2the earliest.


$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

$35.00

$40.00

$45.00

2006 2007 2008 2009 2010 2011

Class B

Class A

Class C

Average







Tenant Address Class Deal Type Size (SF)

Groupon 303 E. Wacker Drive B Expansion 150,000Crain Communications 150 N. Michigan Avenue B New Lease 54,000

Thoughtworks 200 E. Randolph Street A Renewal/Expansion 52,000Westwood College 1 N. State Street B New Lease 50,000Dex One 200 E. Randolph Street A Renewal 34,000Evraz North America 200 E. Randolph Street A New Lease 34,000


Address Sale Price Size Price/SF Buyer Seller

N O A C T I V I T Y

The most signi cant transactiono the rst quarter was Groupon’s

5 , -squareoot expansion at

East Wacker Drive.





NET ABSORPTION & VACANCYNORTH MICHIGAN AVENUE SUBMARK

S q u a r e

F o o

t a g e V

a c a n c y( %)


117,941

274,234

-21,868-61,793

-387,499

-20,106

11.70

9.60 9.80 10.20

13.10 13.30

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

-500,000

-400,000

-300,000

-200,000

-100,000

0

100,000

200,000

300,000

400,000

2006 2007 2008 2009 2010 2011 YTD

In terms o ofce space, North Michigan Avenue is the smallest submarket in the CBD and attracts adi erent ofce user than the other submarkets. Typical ofce users in the North Michigan Avenuesubmarket tend to be smaller boutique companies interspersed with medical-related tenants thatpre er the submarket because o its proximity to Northwestern Memorial Hospital and the impendiopening o Children’s Memorial Hospital in 2 2.

Deal velocity and absorption rates in the submarket tend to be low as many tenants in North MichiganAvenue reside in the submarket on a long-term basis. As a result o its unique tenant compositionand diverse building product, the submarket boasts the lowest overall vacancy rate o any CBsubmarket. Despite PricewaterhouseCooper’s addition o 6 , square eet o space at 75 Michigan Ave. to the sublease market during the rst quarter, North Michigan Avenue also has the

lowest sublease vacancy rate in the CBD.

Consistent with historic trends in the submarket, there were no signi cant lease signings or NorthMichigan Avenue during the rst quarter. However, Interpublic Group’s GolinHarris and WebShandwick are rumored to be negotiating a lease at the Hancock Center to occupy a combined

4 , square eet. As o publication, this lease had not been signed. Assuming the leaseexecuted, Weber Shandwick’s relocation to the Hancock Center would not result in direct absorptionas the company already resides in the submarket. However, GolinHarris would relocate rom icurrent location in the East Loop, resulting in approximately 6 , square eet o pure absorptionthe submarket.

VACANCY

Despite having the lowest vacancy rate in the

CBD, North Michigan Avenue has not beenimmune to the market slowdown. Currentvacancy o . percent stands 2.6 percenthigher than it did just a year ago. However, thesubmarket should begin to see stabilizationduring 2 as the medical industry continuesto keep the submarket a oat.

ABSORPTION

North Michigan Avenue experienced

eleventh consecutive quarter o negatiabsorption, ending the rst quarter o the yeat negative 2 , 6 square eet. All builclasses experienced negative absorption durinthe quarter on a direct basis.

North Michigan AvenueThe North Michigan Avenue corridor is renowned or its expansivretail component that is situated among many upper class residential

properties, as well as a large medical ofce presence.

MARKET INDICATORS

North Michigan Avenue

4Q 2 Q 2

VACANCY RATE . % . %

ABSORPTION (SF) - 7,499 -2 , 6

RENTS $ .62 $ .2

INVENTORY ,24 , 5 ,24 , 5






Tenant Address Class Size (SF) Deal Type Quartver

N O A C T I V I T Y



N O A C T I V I T Y


CONSTRUCTION

No new construction was delivered to North Michigan Avenue during the rst quarter and no ofcedeliveries are anticipated in the near uture.

RENTS

The overall average asking rental rate ell slightly to $ .2 per square oot during the rst quartdown rom $ .62 per square oot in the prior period.

ASKING GROSS FACE RATESNORTH MICHIGAN AVENUE SUBMARKET


Class A

Class C

Average

$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

$35.00

$40.00

$45.00

$50.00

2006 2007 2008 2009 2010 2011

Class B





NET ABSORPTION & VACANCYRIVER NORTH SUBMARKET

S q u a r e

F o o

t a g e V

a c an

c y( %)


117,941

274,234

-21,868-61,793

-387,499

-20,106

11.70

9.60 9.80 10.20

13.10 13.30

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

-500,000

-400,000

-300,000

-200,000

-100,000

0

100,000

200,000

300,000

400,000

2006 2007 2008 2009 2010 2011 YTD

Four o the CBD’s largest contiguous blocks o available space reside in River North. The largest blois over 7 , square eet in the high rise o N. Wabash Avenue and was vacated by Jenner Block in 2 9 upon its relocation to 5 N. Clark Street. While it is difcult or landlords o the olClass A properties in River North to compete with the appeal surrounding the new developmentstenants seeking quality space at a lower rate than what is o ered at the newly constructed towers,can nd very attractive lease economics when considering these older properties.

With the recent growth in the technology and social networking industry, River North is a naturacandidate to attract these cutting-edge companies. Groupon currently occupies a large block o spaceat 6 W. Chicago Avenue. The company recently leased another 96, square eet on a shorterm basis at E. Wacker Drive in the East Loop due to lack o built-out space at its existinlocation. Groupon is expected to continue its growth in the River North submarket and is likely absorb the majority o any vacant space that becomes available at 6 W. Chicago Avenue.

VACANCY

The overall vacancy rate in River North ended the rst quarter at 4.9 percent. Despite the almosully leased status o the new ofce towers, Class A vacancy in River North remains elevated at 25.9

percent largely due to vacancies in the older Class A assets like Jenner & Block’s ormer space at N. Wabash Avenue. The submarket’s Class B sector has the lowest rate in the CBD at only 9. percent

ABSORPTION

During the rst quarter the submarket experienced positive 2 , 27 square eet o net absorptioThe submarket has posted positive absorption in ve o the last six quarters.

River NorthThe River North submarket is comprised o predominately Class B anClass C lo t-style properties. With the addition o two new ofce towers

in 2 9 at N. LaSalle Street and 5 N. Clark Street, River Nortwas trans ormed rom a low velocity submarket geared towardsunique users to a suddenly vibrant and attractive submarket or themore traditional ofce user. As a result, River North boasts the secondlowest vacancy rate o any submarket in the CBD.MARKET INDICATORS

River North

4Q 2 Q 2

VACANCY RATE 5.7% 4.9%

ABSORPTION (SF) 76,9 2 , 27

RENTS $ 2.7 $ .

INVENTORY 5,974, 2 5,974, 2





ASKING GROSS FACE RATESRIVER NORTH SUBMARKET

CONSTRUCTION

No new construction was delivered to RiverNorth during the rst quarter and there are noplanned developments on the horizon.

RENTS

The average direct asking rental rate in RivNorth is $ . per square oot gross. A wdisparity exists between Class A and properties in the submarket with Class A rentaveraging $ . 6 per square oot and Clas

properties at $26.99 per square oot gross.

$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

$35.00

$40.00

$45.00

2006 2007 2008 2009 2010 20 11


Class B

Class A

Average

Class C



Tenant Address Class Deal Type Size(SF)

Whole Foods Market 640 N. LaSalle Street B New Lease 36,000Rakoczy, Molino, Mazzochi& Siwik

6 W. Hubbard Street B New Lease 24,000



N O A C T I V I T Y





VACANCY

Continuing a vacancy rate descent thatcommenced in the second quarter o 2 ,the West Loop posted a 6.5-percent vacancy,down rom 6.9 percent in the prior quarter.At only . percent, the West Loop has thesecond lowest sublease vacancy rate.

ABSORPTION

Posting positive absorption in all thrbuildings classes, the West Loop had a vestrong start to the year with positive 264,square eet o net absorption. Absorptshould continue to be modestly positive or balance o the year as the e ects o receexpansions are realized.

Landlords and tenants alike look to the West Loop as a benchmark o the relative health o the CBmarket. During the recent economic downturn, the West Loop experienced signi cant vacancincreases with its rate spiking dramatically rom .9 percent at the end o 2 7 to . percentthe beginning o 2 . Such a drastic shi t in a typically very healthy and dynamic submarket waclear indication that the CBD as a whole was being signi cantly a ected by economic events thawere un olding across the nation. This type o shi t was only rivaled by the dot-com bubble burst apost 9/ events in 2 and 2 , respectively.

The West Loop has a signi cantly larger Class A inventory than any other submarket, boasting nearl million square eet o Class A space which exceeds the next largest Class A inventory locatedthe Central Loop by million square eet. Although the trophy (Class A+) assets developed over tlast decade were generally able to maintain high occupancy levels during the downturn, some o tholder generation Class A buildings in the West Loop su ered sizable vacancies during the last twoyears. The health o these older Class A properties, such as Willis Tower and and SouWacker, o ten can be an indication o the direction the submarket is headed. Recently increaseleasing activity levels in the Class A sector seems to suggest that momentum has improved. The WilliTower has gained traction as Continental Holdings has begun its occupancy o over 6 , squa

eet in the low rise o the tower. and South Wacker has also experienced signi cant leasigains a ter a major relocation by the CME Group trading unctions and traders ofces to the CBObuilding. and S. Wacker has since secured the CME Group Global Operations Center and Btenancies and now Wells Fargo is in lease or approximately 2 , square eet which combin

with CME and BP will bring the building to nearly ully leased status, while eliminating a signilarge block o Class “A” space in the center o the West Loop.

During the past our consecutive quarters, the West Loop has experienced modest vacancy decreases,urther indication that this submarket could be in a state o recovery and serving as a potentia

precursor or recovery in other submarkets as the year progresses. As the high-view, quality spacesector o the West Loop market continues to become more constrained, the resulting impact on thebalance o the submarket will be imminent and the theory that rising tides li ts all boats will apply

Class A West Loop assets seem to have reached stabilization in rental rates, while Class B and Cproperties continue to see a minor descent in asking rates. However, as sustained leasing momentumis gained in the Class A sector, and vacancy continues its descent in these assets, it can be expectedthat upward pressure on rental rates will invariably emerge. As landlords o Class A assets beginpressing rates, landlords o Class B assets will gradually ollow, initiating a trickle-down e ect thwill translate to rate increases across all building classes and across all submarkets over time.

West LoopFor the last decade, the West Loop has been touted the CBD’s premiersubmarket. This is largely due to its proximity to public transit, thedevelopment o multiple trophy assets with plenti ul amenities anefcient ootprints, and the image associated with being located on ornear prestigious Wacker Drive.

MARKET INDICATORS

West Loop

4Q 2 Q 2

VACANCY RATE 6.9% 6.5%

ABSORPTION (SF) 6 , 49 264,2

RENTS $ . 2 $ .22

INVENTORY 47, , 47, ,





NET ABSORPTION & VACANCYWEST LOOP SUBMARKET

S q u a r e

F o o

t a g e V

a c a n c y( %)


2,029,259

1,639,111

-489,935

-929,369

72,797264,200

14.80

11.9012.90

17.00 16.90 16.50

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

-1,500,000

-1,000,000

-500,000

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

2006 2007 2008 2009 2010 2011 YTD

ASKING GROSS FACE RATESWEST LOOP SUBMARKET


$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

$35.00

$40.00

$45.00

2006 2007 2008 2009 2010 2011

Class B

Class A

Class C

Average



Tenant Address Class Deal Type Size (SF)

PNC Bank 1 N. Franklin Street A Renewal/Expansion 116,000Tressler LLP 233 S. Wacker Drive A Renewal/Expansion 83,000

Humana 550 W. Adams Street A Renewal/Expansion 83,000University Healthcare Consortium 155 N. Wacker Drive A New Lease 70,000Franczek Radelet 300 S. Wacker Drive B Expansion 36,000



N O A C T I V I T Y

CONSTRUCTION

The West Loop did not have any new construction deliveries to the submarket during the quarter norare any currently planned. However, speculation has arisen about several West Loop developmensites potentially having a building launched i nancing and anchor tenants could be secured.

RENTS

Average direct asking rates in the West Loop have helsteady or several quarters with the current rate at $ .2per square oot. Subtle declines in Class B and C rathave been o set by minor increases in rental rates inClass A properties, making the net change in thsubmarket’s overall rate negligible.





SIGNIFICANT LEASE TRANSACTIONS - FIRST QUARTER 2011

Tenant Building Address Class Submarket Size (SF) Type

Groupon E. Wacker Drive B East Loop 5 , Expansion

PNC Bank N. Franklin Street A West Loop 6, Renewal/Expansion

Tressler LLP 2 S. Wacker Drive A West Loop , Renewal/Expansion

Humana 55 W. Adams Street A West Loop , Renewal/Expansion

Pierce & Associates N. Dearborn Street B Central Loop 7 , Renewal/Expansion

University Healthcare Consortium 55 N. Wacker Drive A West Loop 7 , New Lease

Crain Communications 5 N. Michigan Avenue B East Loop 54, New Lease

Thoughtworks 2 E. Randolph Street A East Loop 52, Renewal/Expansion

Westwood College N. State Street B East Loop 5 , New Lease

Thomson Reuters N. Dearborn Street B Central Loop 4 , New Lease

AlphaMetrix Investment Advisors W. Madison Street A Central Loop , Renewal/Expansion

Morgan, Lewis & Bockius 77 W. Wacker Drive A Central Loop 6, Renewal/Contraction

Sti el, Nicolaus & Co. 7 W. Madison Street A Central Loop 6, Renewal

Franczek Radelet S. Wacker Drive B West Loop 6, Expansion

Whole Foods Market 64 N. LaSalle Street B River North 6, New Lease

Dex One 2 E. Randolph Street A East Loop 4, Renewal

Evraz North America 2 E. Randolph Street A East Loop 4, New Lease

Healthcare In ormation & Management Systems W. Monroe Street A Central Loop , New Lease/Expansion

JMC Steel 227 W. Monroe Street A West Loop 29, Sublease

Bel Brands S. Wacker Drive A West Loop 27, Sublease

Rakoczy, Molino, Mazzochi & Siwik 6 W. Hubbard Street B River North 24, Renewal/Expansion

Collins Engineers 2 N. Wacker Drive A West Loop 2 , Renewal/Contraction





RST QUARTER 2011 OFFICE MARKET STATISTICS | COLLIERS INTERNATIONAL STANDARDS(Includes all owner-occupied properties)V A C A N C Y A B S O R P T I O N

BuildingsTotalInventory SF

Direct SFVacant

Sublease SFVacant Total Vacant SF

DirectVacancyRate

SubleaseVacancyRate

Total VacancyRate Q

Total VacancyRate PriorQtr.

Total Direct NetAbsorption

Total SubleaseNet Absorption

Total NetAbsorption

Q Net AYTD

tral Loop

ss A: 13 12,872,256 1,026,876 156,254 1,183,130 8.0% 1.2% 9.2% 8.3% (94,636) (23,738) -118,374 (11

ss B: 51 27,086,196 3,599,325 743,725 4,343,050 13.3% 2.7% 16.0% 15.8% 5,644 (61,082) (55,438) (55

ss C: 41 4,717,226 509,241 6,345 515,586 10.8% 0.1% 10.9% 9.3% (75,726) 1,000 (74,726) (74

total: 105 44,675,678 5,135,442 906,324 6,041,766 11.5% 2.0% 13.5% 13.0% (164,718) (83,820) (248,538) (24

t Loop

ss A: 4 6,663,954 1,073,649 464,281 1,537,930 16.1% 7.0% 23.1% 22.9% (68,705) 60,080 -8,625 (8,6

ss B: 27 14,676,228 2,415,495 121,276 2,536,771 16.5% 0.8% 17.3% 16.8% (78,796) 319 (78,477) (78

ss C: 56 6,962,378 718,468 9,398 727,866 10.3% 0.1% 10.5% 10.5% (2,526) 6,219 3,693 3,6

total: 87 28,302,560 4,207,612 594,955 4,802,567 14.9% 2.1% 17.0% 16.7% (150,027) 66,618 (83,409) (83

th Michigan Avenue

ss A: 9 4,928,998 696,341 76,225 772,566 14.1% 1.5% 15.7% 15.7% (23,697) 26,660 2,963 2,9ss B: 32 8,091,344 814,363 35,417 849,780 10.1% 0.4% 10.5% 10.4% (12,288) 4,893 (7,395) (7,3

ss C: 30 3,012,156 201,905 2,142 204,047 6.7% 0.1% 6.8% 6.8% 116 0 116 116

total: 71 16,032,498 1,712,609 113,784 1,826,393 10.7% 0.7% 11.4% 11.4% (35,869) 31,553 (4,316) (4,3

er North

ss A: 6 5,228,329 1,242,455 111,831 1,354,286 23.8% 2.1% 25.9% 25.7% (50,537) 37,338 -13,199 (13

ss B: 48 9,572,137 670,232 224,600 894,832 7.0% 2.3% 9.3% 10.8% 138,641 4,258 142,899 142

ss C: 76 3,779,416 551,016 64,204 615,220 14.6% 1.7% 16.3% 16.7% 13,346 2,949 16,295 16,

total: 130 18,579,882 2,463,703 400,635 2,864,338 13.3% 2.2% 15.4% 16.2% 101,450 44,545 145,995 145

st Loopss A: 31 27,661,399 4,053,925 325,716 4,379,641 14.7% 1.2% 15.8% 16.3% 72,137 65,467 137,604 13

ss B: 39 18,893,066 2,655,507 150,296 2,805,803 14.1% 0.8% 14.9% 15.0% 25,042 8,490 33,532 33,

ss C: 48 4,077,672 803,337 9,115 812,452 19.7% 0.2% 19.9% 22.2% 77,973 14,245 92,218 92,

total: 118 50,632,137 7,512,769 485,127 7,997,896 14.8% 1.0% 15.8% 16.3% 175,152 88,202 263,354 263

D Total

ss A: 63 57,354,936 8,093,246 1,134,307 9,227,553 14.1% 2.0% 16.1% 16.1% (165,438) 165,807 369 36

ss B: 197 78,318,971 10,154,922 1,275,314 11,430,236 13.0% 1.6% 14.6% 14.6% 78,243 (43,122) 35,121 35,

ss C: 251 22,548,848 2,783,967 91,204 2,875,171 12.3% 0.4% 12.8% 12.9% 13,183 24,413 37,596 37,

total: 511 158,222,755 21,032,135 2,500,825 23,532,960 13.3% 1.6% 14.9% 14.9% (74,012) 147,098 73,086 73,

The in ormation contained in this report was provided by sources deemed to be reliable, however, no guarantee is made as to the accuracy or reliability. As new, corrected or

updated in ormation is obtained, it is incorporated into both current and historical data, which may invalidate comparison to previously issued reports.





RST QUARTER 2011 OFFICE MARKET STATISTICS | LOCAL STANDARDS(Includes competitive owner-occupied properties only)V A C A N C Y A B S O R P T I O N

BuildingsTotalInventory SF

Direct SFVacant

Sublease SFVacant Total Vacant SF

DirectVacancyRate

SubleaseVacancyRate

Total VacancyRate Q

Total VacancyRate PriorQtr.

Total Direct NetAbsorption

Total SubleaseNet Absorption

Total NetAbsorption

Q Net AYTD

tral Loop

ss A: 16 16,050,774 1,392,406 169,666 1,562,072 8.7% 1.1% 9.7% 9.2% (105,436) 17,631 -87,805 (87

ss B: 29 17,397,722 2,863,164 694,024 3,557,188 16.5% 4.0% 20.4% 20.0% 33,439 (102,451) (69,012) (69

ss C: 26 4,575,969 720,308 34,901 755,209 15.7% 0.8% 16.5% 14.3% (103,101) 1,000 (102,101) (10

total: 71 38,024,465 4,975,878 898,591 5,874,469 13.1% 2.4% 15.4% 14.8% (175,098) (83,820) (258,918) (25

t Loop

ss A: 4 6,663,954 1,045,390 464,281 1,509,671 15.7% 7.0% 22.7% 22.5% (68,705) 60,080 -8,625 (8,6

ss B: 16 11,475,841 2,298,050 121,276 2,419,326 20.0% 1.1% 21.1% 20.5% (67,957) 319 (67,638) (67

ss C: 44 8,073,131 803,305 9,398 812,703 10.0% 0.1% 10.1% 9.9% (15,685) 6,219 (9,466) (9,4

total: 64 26,212,926 4,146,745 594,955 4,741,700 15.8% 2.3% 18.1% 17.8% (152,347) 66,618 (85,729) (85

th Michigan Avenue

ss A: 8 4,694,962 696,341 76,225 772,566 14.8% 1.6% 16.5% 16.5% (23,697) 26,660 2,963 2,9ss B: 20 5,784,410 678,822 35,417 714,239 11.7% 0.6% 12.3% 12.0% (22,140) 4,893 (17,247) (17

ss C: 16 2,761,978 273,638 0 273,638 9.9% 0.0% 9.9% 9.7% (5,822) 0 (5,822) (5,8

total: 44 13,241,350 1,648,801 111,642 1,760,443 12.5% 0.8% 13.3% 13.1% (51,659) 31,553 (20,106) (20

er North

ss A: 6 5,228,329 1,242,455 111,831 1,354,286 23.8% 2.1% 25.9% 25.7% (50,537) 37,338 -13,199 (13

ss B: 21 8,431,551 565,897 216,566 782,463 6.7% 2.6% 9.3% 10.8% 115,237 12,292 127,529 127

ss C: 25 2,314,140 233,478 11,835 245,313 10.1% 0.5% 10.6% 11.2% 12,823 1,674 14,497 14,

total: 52 15,974,020 2,041,830 340,232 2,382,062 12.8% 2.1% 14.9% 15.7% 77,523 51,304 128,827 128

st Loopss A: 29 26,980,399 4,018,925 325,716 4,344,641 14.9% 1.2% 16.1% 16.6% 70,277 65,467 135,744 13

ss B: 25 15,998,096 2,378,349 141,797 2,520,146 14.9% 0.9% 15.8% 15.9% 19,566 8,490 28,056 28,

ss C: 31 4,321,616 825,384 16,614 841,998 19.1% 0.4% 19.5% 21.8% 85,155 15,245 100,400 100

total: 85 47,300,111 7,222,658 484,127 7,706,785 15.3% 1.0% 16.3% 16.9% 174,998 89,202 264,200 264

D Total

ss A: 63 59,618,418 8,395,517 1,147,719 9,543,236 14.1% 1.9% 16.0% 16.1% (178,098) 207,176 29,078 29

ss B: 111 59,087,620 8,784,282 1,209,080 9,993,362 14.9% 2.0% 16.9% 16.9% 78,145 (76,457) 1,688 1,6

ss C: 142 22,046,834 2,856,113 72,748 2,928,861 13.0% 0.3% 13.3% 13.3% (26,630) 24,138 (2,492) (2,4

total: 316 140,752,872 20,035,912 2,429,547 22,465,459 14.2% 1.7% 16.0% 16.0% (126,583) 154,857 28,274 28,

The in ormation contained in this report was provided by sources deemed to be reliable, however, no guarantee is made as to the accuracy or reliability. As new, corrected or

updated in ormation is obtained, it is incorporated into both current and historical data, which may invalidate comparison to previously issued reports.





DOWNTOWN CHICAGO SUBMARKET MAP

RESEARCHER:

Downtown ChicagoMichelle TenutaResearch ManagerColliers International2 S. Wacker Drive, Suite 7

Chicago, IL 6 6 6TEL + 2 69 9 [email protected]

4 ofces in6 countries on6 continentsUnited States: 5Canada: 9Latin America: 7Asia Paci c: 94EMEA: 95

• $1.9 billion in annual revenue• 2.4 bllion square feet under

management• Over 15,000 professionals

Accelerating success.

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ILLINOIS

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NORTH WATERKINZIE

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41


Q1-2011-Chicago Downtown Office Market Report

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