MARCH 2017 OFFICE VACANCY GUIDE ADVISORY & TRANSACTION SERVICES - OFFICE LEASING

www.cbre.com.au MELBOURNE OFFICE VACANCY MARCH 2017

CONTENTS WELCOME

CBRE IS PLEASED TO PRESENT THE MARCH 2017 EDITION OF THE MELBOURNE CBD OFFICE VACANCY GUIDE. THIS GUIDE HAS BEEN ++Market View PREPARED IN ORDER TO ASSIST OUR CLIENTS IN MAKING INFORMED DECISIONS BASED ON CURRENT MARKET INTELLIGENCE. ++Market Vacancy

++CBD Vacancy Report CONTACT US

ANDREW TRACEY MARC MENGONI CAITLIN MURDOCH MARK BOLIS PATRICK MOUNT Regional Director Director Senior Associate Director Senior Associate Director Senior Associate Director T. +61 3 8621 3325 T. +61 3 8621 3416 T. +61 3 8621 3417 T. +61 3 8621 3322 T. +61 3 8621 3337 M. +61 412 809 300 M. +61 413 484 966 M. +61 417 473 015 M. +61 412 237 809 M. +61 413 253 593 [email protected] [email protected] [email protected] [email protected] [email protected]

SCOTT MCGLONE WILL DUNGEY ED LOWER CHARLOTTE MCCANN JAMES ALLEN Associate Director Manager Manager Negotiator Analyst T. +61 3 8621 3336 T. +61 3 8621 3495 T. +61 3 8621 3324 T. +61 3 8621 3061 T. +61 3 8621 3060 M. +61 419 468 871 M. +61 400 994 351 M. +61 423 734 043 M. +61 419 042 088 [email protected] [email protected] [email protected] [email protected] [email protected] MELBOURNE OFFICE VACANCY MARCH 2017

MARKET VIEW MELBOURNE CBD OFFICE

Demand Supply Rents Absorption

Victoria’s state final demand continued to grow over Over 2016, the Melbourne CBD saw the completion The Melbourne CBD leasing market continued to Net absorption in the Melbourne CBD has now been the 12 months ending September 2016, up 2.5%. of just under 110,000sqm of new office supply. This strengthen in Q4 2016, recording its fourth positive for 13 consecutive years, and is expected to Strengthening demand in the Melbourne CBD has supply comprised of two buildings – Towers 2 and 4 of consecutive quarter of positive growth in net effective remain positive over the short to medium term off the seen vacancy trend downwards over the last two years, Walker Corporation’s Collins Square development – rents. Prime face rents were up 1.6% over the quarter, back of the forecast growth in white collar estimated at 6.4% in December 2016. bringing 70,700sqm and 38,500sqm respectively to and 5.9% year-on-year to average an indicative employment. the Docklands precinct. $525/sqm. Further supporting growth in effective The Melbourne CBD recorded growth of 1.3% in white rents, prime incentives shed 15bps over the quarter to Vacancy is expected to continue contracting in 2017 collar employment over the 12 months to September The supply pipeline in 2017 will be subdued, with only average 32%. Prime effective rents averaged $360/ off the back of positive growth forecast for white collar 2016. Melbourne’s white collar workforce is predicted 8,000sqm of new supply to be added as part of the sqm in Q4 2016, up 1.8% over the quarter, 7.2% employment and minimal new supply. Lower vacancy to continue expanding, with growth of 1.8% forecast regeneration of . Bank of Melbourne has year-on-year. will support further growth in net effective rents as the over 2017. Likely to support employment growth over pre-committed to 5,000sqm of this additional space. Melbourne CBD transitions away from being a market this time are the accommodation and food, finance Supply will pick up again in 2018 with the completion Secondary rents have also strengthened, with face favouring tenants to a market favouring landlords. and insurance, and information media and of 25,000sqm at 664 Collins Street (with a rents up 0.8% over the quarter, and 4.4% over the telecommunications sectors. 10,000sqm pre-commitment from Pitcher Partners) year to reach an indicative $350/sqm. Secondary and 24,000sqm at One Melbourne Quarter (with a incentives dropped 70bps over the quarter to 31%, By sqm volume, the Professional, Scientific and 5,000sqm pre-commitment from Arup, and a reflecting a 12 month decline of 125bps. Secondary Technical Services sector accounted for the largest 7,000sqm pre-commitment from LendLease). Beyond effective rents averaged $240/sqm in Q4 2016, proportion of enquiry during Q4, followed by 2018, a further 160,000sqm is due for completion reflecting quarterly and annual growth rates of 1.9% Education and Training, then Public Administration over 2019-20. and 6.3% respectively. and Safety. As a result of positive growth in white collar employment and a modest supply outlook, vacancy is predicted to continue its decline in 2017. MARCH 2017 MELBOURNE OFFICE VACANCY MARCH 2017

MELBOURNE VACANCY REPORT VACANCY STATISTICS MELBOURNE

EASTERN NORTH WESTERN TOTAL CIVIC FLAGSTAFF SPENCER DOCKLANDS SOUTHBANK CORE EASTERN CORE

CURRENT NLA (sqm) 4,526,062 467,516 650,547 309,860 348,383 258,393 1,586,864 904,499 405,737

DIRECT VACANCY (sqm) 270,871 24,891 14,021 7,887 48,647 18,799 127,824 28,802 16,333

SUBLEASE VACANCY (%) 20,438 400 5,999 3,532 0 5,720 4,087 700 250

TOTAL VACANCY (sqm) 291,309 25,291 20,020 11,419 48,647 24,519 131,911 29,502 16,583

VACANCY RATES (%) 6.4% 5.4% 3.1% 3.7% 14.0% 9.5% 8.3% 3.3% 4.1%

SOURCE: PCA FEBRUARY 2017 LEGEND AVAILABLE 2017

MARCH 2017 AVAILABLE 2018

SUB LEASE

56 55 PREMIUM GRADE MARKET 54 53 52 51 50 49 1,000 48 51 50 458 47 50 PREMIUM GRADE 49 46 49 48 665 45 48

MARKET SUMMARY 47 298 44 47 Grade Market Premium 46 226 43 46 45 283 42 45 44 500 41 44 ++ Total NLA: 746,387sqm 43 311 40 43 42 39 42 41 38 41 ++ Total Direct Vacancy: 42,390sqm 40 37 40 39 36 39 38 35 1,566 38 ++ Total Sublease Vacancy: 7,259sqm 37 34 1,566 37 36 33 1,566 36 ++ Total Vacancy: 49,649sqm 35 1,860 32 1,566 35 34 1,862 31 1,566 34 567 COLLINS STREET 33 525 COLLINS STREET 30 33 ++ Vacancy Rate: 6.7% 32 29 360 ELIZABETH STREET 32 MELBOURNE MELBOURNE 31 MELBOURNE 28 MELBOURNE 31 30 27 30 29 26 29 28 25 28 27 24 27 26 26 23 26 25 25 22 25 24 24 21 24 LEGEND 23 23 20 23 22 22 19 22 1,166 21 709 21 18 21 20 1,360 20 17 20 19 19 16 19 2,067 18 18 1,786 15 18 AVAILABLE 2017 17 17 1,634 14 743 17 16 16 1,656 13 1,480 16 15 15 1,651 12 15 14 14 11 14 13 13 10 13 AVAILABLE 2018 12 12 9 12 11 11 8 11 10 10 7 10 2,602 9 9 1,662 6 9 Typical Floorplate 1,140 - 1,900sqm 8 Typical Floorplate 1,140 - 1,900sqm 8 Typical Floorplate 875 - 2,000sqm 600 5 Typical Floorplate 1,556sqm 8 NLA 64,000sqm 7 NLA 64,831sqm 7 NLA 84,000sqm 402 4 NLA 65,000sqm 7 SUB LEASE 6 6 1,856 3 6 Asking Net Rent $550 - $610 5 Asking Net Rent $495 - $640 5 Asking Net Rent $450 - $750 2 Asking Net Rent $500 - $600 5 Outgoings $129 4 Outgoings $169 4 Outgoings $160 2,028 1 Outgoings $133.10 4 3 793 3 1,198 1P 3 Potential Total Vacancy 5,835sqm 2 Potential Total Vacancy 2,862sqm 2 Potential Total Vacancy 23,850sqm 823 M2 Potential Total Vacancy 10,000sqm 2 1 1 619 + 479 M1 1 NABERS 5 Star G NABERS 3.5 Star G NABERS 2 Star G NABERS 4.5 Star G Premium Grade Market Grade Premium 9 8 7 6 5 4 3 2 1 G 28 27 26 25 23 22 21 20 19 18 17 16 15 14 13 12 11 10 24

SUB LEASE 550 AVAILABLE 2017 AVAILABLE 2018 1,112 2,363 2,034 2,063 2,958 2,546 LEGEND $138 4 Star $400+ 3,446sqm 8,117sqm 62,336sqm Typical Floorplate Typical NLA Asking Net Rent Outgoings Vacancy Total Potential NABERS 333 COLLINS STREET MELBOURNE 9 8 7 6 5 4 3 2 1 G 38 37 36 35 34 33 32 31 30 29 28 27 26 25 24 23 22 21 20 19 18 17 16 15 14 13 12 11 10 246 209 177 3,516 3,516 286 + 470 $147 5 Star 1,260sqm 8,413sqm 65,000sqm $425 - $450 Asking Net Rent Typical Floorplate Typical NLA Outgoings Vacancy Total Potential NABERS 530 COLLINS STREET MELBOURNE 9 8 7 6 5 4 3 2 1 G 56 55 54 53 52 51 50 49 48 47 46 45 44 43 42 41 40 39 38 37 36 35 34 33 32 31 30 29 28 27 26 25 24 23 22 21 20 19 18 17 16 15 14 13 12 11 10 915 735 538 429 1,036 1,330 1,337 1,341 1,341 $153 3.5 Star 9,002sqm 1,400sqm 64,427sqm $440 - $600 Potential Total Vacancy Total Potential NABERS Typical Floorplate Typical Outgoings NLA Asking Net Rent 600 BOURKE STREET MELBOURNE 9 8 7 6 5 4 3 2 1 G 47 46 45 44 43 42 41 40 39 38 37 36 35 34 33 32 31 30 29 28 27 26 25 24 23 22 21 20 19 18 17 16 15 14 13 12 11 10 215 727 389 3,269 $150 4 Star 4,600sqm 79,944sqm $490 - $730 1,400 - 1,800sqm - 1,400 NLA Asking Net Rent Outgoings Typical Floorplate Typical Potential Total Vacancy Total Potential NABERS MELBOURNE

Premium Grade Market LEGEND AVAILABLE 2017

AVAILABLE 2018 MARCH 2017 SUB LEASE EASTERN CORE A-GRADE MARKET

52 51 50 A-GRADE MARKET SUMMARY 49 48 A-Grade Market 47 46 45 ++ Total NLA: 2,239,962sqm 44 43 ++ Total Direct Vacancy: 133,206sqm 42 41 40 ++ Total Sublease Vacancy: 10,455sqm 39 38 1,110 37 ++ Total Vacancy: 143,661sqm 1,110 36 1,112 35 35 1,112 34 34 ++ Vacancy Rate: 6.4% 33 33 35 COLLINS STREET 32 90 COLLINS STREET 80 COLLINS STREET 32 8 EXHIBITION STREET 32 MELBOURNE 31 MELBOURNE MELBOURNE 31 MELBOURNE 31 30 30 30 29 29 29 28 28 28 27 27 27 26 26 26 25 25 25 1,408 24 24 24 1,687 23 23 23 1,709 22 22 1,568 22 LEGEND 1,707 21 21 21 21 1,675 20 20 1,083 20 20 1,538 19 19 500 19 19 1,556 18 18 282 18 18 1,554 17 17 1,080 17 17 1,596 16 16 16 16 AVAILABLE 2017 1,600 15 15 1,080 15 15 1,600 14 14 1,080 14 1,617 14 1,600 13 13 1,080 13 850 13 1,601 12 12 1,080 12 1,618 12 1,599 11 11 1,080 11 11 1,601 10 10 1,080 10 10 AVAILABLE 2018 1,561 9 9 1,080 9 9 Typical Floorplate 1,600sqm 1,600 8 Typical Floorplate 881 - 1,348sqm 8 Typical Floorplate 1,078 - 1,171sqm 1,080 8 Typical Floorplate 1,568 - 1,687sqm 8 NLA 46,000sqm 1,599 7 NLA 21,200sqm 7 NLA 50,600sqm 1,080 7 NLA 44,900sqm 7 1,601 6 6 6 6 Asking Net Rent $490 - $600 1,601 5 Asking Net Rent $415 5 Asking Net Rent $500 5 Asking Net Rent $550 - $600 5 4 4 4 SUB LEASE Outgoings $135 1,600 4 Outgoings $128 Outgoings $125 Outgoings $162.93 1,536 3 3 3 3 Potential Total Vacancy 30,000sqm 2 Potential Total Vacancy 1,348sqm 2 Potential Total Vacancy 17,100sqm 2 Potential Total Vacancy 5,653qm 2 1 1,348 1 1 1 NABERS 3 Star G NABERS 3 Star G NABERS 4.5 Star G NABERS 4.5 Star G LEGEND LEGEND EASTERN CORE - CONTINUED AVAILABLE 2017 MIDTOWN - CONTINUED WESTERN CORE AVAILABLE 2017 AVAILABLE 2018 AVAILABLE 2018

150 COLLINS STREET 161 COLLINS STREET 222 EXHIBITION STREET SUB LEASE SUB LEASE MELBOURNE MELBOURNE MELBOURNE

28 27 A-Grade Market A-Grade 26 25 24 23 22 21 20 19 18 17 A-Grade Market 16 15 320 14 560 13 12 12 12 11 11 11 10 10 10 9 9 9 Typical Floorplate 1,800sqm Typical Floorplate 4,000sqm Typical Floorplate 1,328sqm 8 4,255 8 8 NLA 20,000sqm 7 NLA 40,651sqm 7 NLA 28,025sqm 7 6 6 6 42 Asking Net Rent $565 5 Asking Net Rent $400 - $470 5 Asking Net Rent $405 - $425 5 41 41 40 Outgoings $176 4 Outgoings $110 4 Outgoings $139 4 40 3 3,994 3 3 39 39 39 Potential Total Vacancy 1,338sqm 2 Potential Total Vacancy 14,040sqm 3,850 2 Potential Total Vacancy 880sqm 2 38 38 38 1,338 1 1,941 1 1 37 37 1,259 37 NABERS 5 Star NABERS 3 Star NABERS 3.5 Star G G G 36 36 504 36 35 35 35 34 34 34 1,263 33 367 COLLINS STREET 330 COLLINS STREET 357 COLLINS STREET 360 COLLINS STREET 33 33 570 BOURKE STREET MIDTOWN 32 300 32 385 BOURKE STREET 32 32 MELBOURNE 31 MELBOURNE MELBOURNE MELBOURNE 31 MELBOURNE 31 MELBOURNE 31 MELBOURNE 706 31 30 30 30 1,269 30 30 29 29 29 29 29 28 300 28 28 28 28 27 27 27 615 27 1,200 27 26 26 26 26 26 25 25 273 25 25 25 24 24 24 24 24 23 23 23 23 23 23 22 350 22 22 22 565 619 22 22 1,117 21 21 21 1,283 21 21 21 20 20 20 1,283 20 20 20 1,115 19 19 19 1,250 19 19 235 19 18 18 18 18 18 1,239 18 18 17 17 17 17 17 17 1,085 17 16 16 16 16 16 16 1,140 16 15 15 15 15 15 15 1,140 15 14 14 14 14 14 447 14 1,140 14 13 13 13 13 600 13 1,233 13 1,140 13 12 12 12 12 12 1,233 12 12 11 11 11 11 11 11 11 10 10 10 275 10 10 10 10 9 306 9 9 1,156 9 9 9 9 Typical Floorplate 1,100sqm Typical Floorplate 903 - 1,450sqm Typical Floorplate 770 - 1,940sqm Typical Floorplate 1,232sqm Typical Floorplate 1,215sqm Typical Floorplate 1,250sqm Typical Floorplate 1,200 - 2,758sqm 8 8 8 1,156 8 8 8 8 NLA 37,895sqm 7 NLA 16,432sqm 7 NLA 31,800sqm 7 NLA 44,155sqm 1,156 7 NLA 63,292sqm 7 NLA 42,606sqm 7 NLA 49,000sqm 7 6 6 6 1,156 6 6 6 6 Asking Net Rent $400 - $550 5 Asking Net Rent $470 5 Asking Net Rent $400 - $600 5 Asking Net Rent $480 - $540 1,156 5 Asking Net Rent $460 - $530 5 Asking Net Rent $510 - $610 5 Asking Net Rent $430 - $520 5 4 1,156 4 4 4 4 Outgoings $124 4 Outgoings $127 Outgoings $121 1,934 4 Outgoings $144 Outgoings $138 Outgoings $124 Outgoings TBC 3 3 1,078 3 3 3 3 3 Potential Total Vacancy 2,232sqm 2 Potential Total Vacancy 306sqm 2 Potential Total Vacancy 6,374sqm 1,934 2 Potential Total Vacancy 7,811sqm 2 Potential Total Vacancy 4,689sqm 2 Potential Total Vacancy 9,742sqm 2 Potential Total Vacancy 7,786sqm 2 1 1 1,078 1 1 1 1 1 NABERS 2.5 Star NABERS 4 Star NABERS 3.5 Star NABERS 5 Star NABERS 2.5 Star G NABERS 4 Star G NABERS 5 Star G G G G G A-Grade Market A-Grade 9 8 7 6 5 4 3 2 1 G 20 19 18 17 16 15 14 13 12 11 10 295

1,980 2,089 2,090 2,091 2,097 2,102 1,062 SUB LEASE AVAILABLE 2017 AVAILABLE 2018 LEGEND $139 4 Star 2,000sqm 40,700sqm 13,806sqm $440 - $500 Typical Floorplate Typical NLA Asking Net Rent Outgoings Vacancy Total Potential NABERS 15 WILLIAM STREET 15 WILLIAM MELBOURNE 9 8 7 6 5 4 3 2 1 9 8 7 6 5 4 3 2 1 G G 21 20 19 18 17 16 15 14 13 12 11 10 18 17 16 15 14 13 12 11 10 717 1,249 1,249 1,115 2,700 2,700 $85 $390 $131 4 Star 4.5 Star 1,250sqm 3,215sqm 6,515sqm 21,981sqm 38,349sqm $430 - $460 1,115 - 2,700sqm NLA Asking Net Rent Outgoings Vacancy Total Potential NABERS Typical Floorplate Typical Typical Floorplate Typical NLA Asking Net Rent Outgoings Vacancy Total Potential NABERS 380 LA TROBE STREET LA TROBE 452 FLINDERS STREET MELBOURNE 9 8 7 6 5 4 3 2 1 9 8 7 6 5 4 3 2 1 G G 27 26 25 24 23 22 21 20 19 18 17 16 15 14 13 12 11 10 18 17 16 15 14 13 12 11 10 1,152 NIL N/A $116 $134 3 Star 5 Star 1,135sqm 1,152sqm 11,350sqm 49,557sqm $385 - $395 1,895 - 2,589sqm Asking Net Rent NLA Outgoings Vacancy Total Potential NABERS Typical Floorplate Typical Potential Total Vacancy Total Potential NABERS Asking Net Rent Outgoings Typical Floorplate Typical NLA 460 LONSDALE STREET LONSDALE 460 MELBOURNE 181 WILLIAM STREET MELBOURNE 1 8 7 6 5 4 3 2 3 2 1 9 8 7 6 5 4 G G 19 18 17 16 15 14 13 12 11 10 860 208 1,475 1,296 $139 2.5 Star 4.5 Star $121.55 1,328sqm 2,335sqm 1,504sqm 1,504sqm 28,025sqm 24,500sqm $400 - $430 $520 - $575 NLA Asking Net Rent Outgoings Typical Floorplate Typical Potential Total Vacancy Total Potential NABERS Typical Floorplate Typical NLA Asking Net Rent Outgoings Vacancy Total Potential NABERS 555 BOURKE STREET BOURKE 555 MELBOURNE 550 BOURKE STREET MELBOURNE WESTERN CORE - CONTINUED CORE WESTERN

A-Grade Market LEGEND AVAILABLE 2017

AVAILABLE 2018

MARCH 2017 SUB LEASE 31 QUEEN STREET 595 COLLINS STREET 114 WILLIAM STREET 565 BOURKE STREET MELBOURNE MELBOURNE MELBOURNE MELBOURNE B-GRADE MARKET 23 22 22 21 21 20 339 20 19 19 18 18 18 B-GRADE MARKET SUMMARY 17 17 17 16 16 16 B-Grade Market 15 15 15 159 15 14 14 14 250 14 ++ Total NLA: 875,344sqm 13 13 13 13 961 12 12 12 1,001 12 11 11 11 1,001 11 ++ Total Direct Vacancy: 49,315sqm 10 10 10 10 270 9 868 9 9 1,000 9 Typical Floorplate 961sqm Typical Floorplate 1,894sqm Typical Floorplate 953sqm Typical Floorplate 1,000sqm 8 8 8 8 1,000 7 ++ Total Sublease Vacancy: 1,258sqm NLA 19,633sqm 370 7 NLA 31,777sqm 7 NLA 21,058sqm 430 7 NLA 16,000sqm 6 6 6 6 Asking Net Rent $370 - $450 5 Asking Net Rent $400 5 Asking Net Rent $440 - $480 5 Asking Net Rent $400 - $460 5 4 4 ++ Total Vacancy: 50,573sqm Outgoings $120 4 Outgoings $111 Outgoings $113 4 Outgoings $103 961 3 1,851 3 3 1,000 3 Potential Total Vacancy 3,141sqm 379 2 Potential Total Vacancy 2,719sqm 2 Potential Total Vacancy 1,682sqm 913 2 Potential Total Vacancy 7,411sqm 1,000 2 ++ Vacancy Rate: 5.8% 1 1 1,000 1 1 NABERS 3 Star NABERS 1.5 Star 200 G NABERS 4.5 Star G NABERS 1.5 Star G G

120 SPENCER STREET 215 SPRING STREET 350 QUEEN STREET 150 LONSDALE STREET MELBOURNE MELBOURNE MELBOURNE MELBOURNE

28 27 230 26 LEGEND 25 24 23 1,624 22 22 1,420 21 21 1,130 21 1,419 20 394 20 20 AVAILABLE 2017 1,420 19 19 19 1,418 18 969 18 18 1,418 17 969 17 17 1,420 16 969 16 16 1,419 15 969 15 15 1,419 14 14 14 AVAILABLE 2018 13 13 13 12 958 12 12 11 11 11 10 10 10 720 9 9 9 9 Typical Floorplate 1,280sqm Typical Floorplate 1,734sqm Typical Floorplate 969sqm Typical Floorplate 1,126sqm SUB LEASE 8 8 400 8 8 NLA 16,176sqm 7 NLA 15,461sqm 7 NLA 22,411sqm 969 7 NLA 28,712sqm 7 6 6 6 6 Asking Net Rent $385 - $445 Asking Net Rent $460 Asking Net Rent $330 - $360 5 5 5 Asking Net Rent $350 - $430 5 4 4 1,330 4 Outgoings $98 Outgoings $130 Outgoings $95 Outgoings $135 4 3 3 3 3 Potential Total Vacancy 13,698sqm 2 Potential Total Vacancy NIL 2 Potential Total Vacancy 10,913sqm 1,500 2 Potential Total Vacancy 1,360sqm 2 1 1 1,486 1 NABERS 3 Star NABERS 4.5 Star NABERS 3 Star 1 G G G NABERS 4.5 Star G B-Grade Market B-Grade MELBOURNE 525 FLINDERSSTREET MELBOURNE 414 LATROBESTREET NABERS Potential Total Vacancy Outgoings Asking NetRent NLA Typical Floorplate NABERS Potential Total Vacancy Outgoings Asking NetRent NLA Typical Floorplate 950 -1,200sqm 10,000sqm 14,299sqm 1,850sqm 4,304sqm 1,076sqm $112.33 5 Star 4 Star $110 $410 $410 1,076 1,076 1,076 1,076 950 550 350 10 11 12 13 14 15 16 17 10 G G 1 2 3 4 5 6 7 8 9 1 2 3 4 5 6 7 8 9 MELBOURNE 535 BOURKESTREET MELBOURNE 505 LITTLECOLLINSSTREET NABERS Potential Total Vacancy Outgoings Asking NetRent NLA Typical Floorplate NABERS Potential Total Vacancy Outgoings Asking NetRent NLA Typical Floorplate 45,000sqm 18,050sqm 1,104sqm 3,200sqm 1,600sqm $121.55 727sqm 1.5 Star $440 G 4 Star $500 $89 1,600 1,600 242 485 10 11 12 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 G G 1 2 3 4 5 6 7 8 9 1 2 3 4 5 6 7 8 9 MELBOURNE 555 LONSDALE STREET MELBOURNE 575 BOURKESTREET NABERS Potential Total Vacancy Outgoings Asking NetRent NLA Typical Floorplate NABERS Potential Total Vacancy Outgoings Asking NetRent NLA Typical Floorplate 1,285 -1,305sqm $370 -$425 $390 -$420 16,176sqm 16,800sqm 1,048sqm 1,741sqm 1,048sqm 3.5 Star $94.01 3 Star $118 1,048 572 285 191 693 10 11 12 13 10 11 12 13 14 15 G G 1 2 3 4 5 6 7 8 9 1 2 3 4 5 6 7 8 9 MELBOURNE 440 COLLINSSTREET MELBOURNE 500 COLLINSSTREET NABERS Potential Total Vacancy Outgoings Asking NetRent NLA Typical Floorplate NABERS Potential Total Vacancy Outgoings Asking NetRent NLA Typical Floorplate $385 -$510 19,500sqm 24,454sqm 1,189sqm 2,505sqm $114.77 500sqm 922sqm 2.5 Star $410 $100 NA LEGEND AVAILABLE 2018 AVAILABLE AVAILABLE 2017 AVAILABLE 427.9 500 922 922 233 SUB LEASE SUB

10 11 12 13 14 15 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 G G 1 2 3 4 5 6 7 8 9 1 2 3 4 5 6 7 8 9 LEGEND AVAILABLE 2018 AVAILABLE AVAILABLE 2017 AVAILABLE MELBOURNE 459 COLLINSSTREET NABERS Potential Total Vacancy Outgoings Asking NetRent NLA Typical Floorplate SUB LEASE SUB

$380 -$450 36,478sqm 6,821sqm 2.5 Stars $120.18 850sqm NORTH 814.8 811 814 814 815 851 850 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 G 1 2 3 4 5 6 7 8 9 SOUTH 733.49 318 10 11 12 13 14 15 G 1 2 3 4 5 6 7 8 9

B-Grade Market LEGEND AVAILABLE 2017 717 BOURKE STREET 737 BOURKE STREET 825 BOURKE STREET 700 COLLINS STREET AVAILABLE 2018 DOCKLANDS DOCKLANDS DOCKLANDS MELBOURNE MARCH 2017 SUB LEASE

DOCKLANDS 18 17 17 16 16 Docklands 15 15 14 14 DOCKLANDS MARKET SUMMARY 13 13 12 12 11 11 10 10 10 9 9 9 Typical Floorplate 2,500sqm ++ Total NLA: 904,499sqm Typical Floorplate 3,000sqm 8 Typical Floorplate 2,088sqm 8 Typical Floorplate 1,509sqm 8 8 NLA 37,000sqm 891+300+300 7 NLA 16,000sqm 1,345.7 7 NLA 10,362sqm 7 NLA 33,804sqm 7 ++ Total Direct Vacancy: 28,802sqm 6 6 6 6 Asking Net Rent $340 - $350 5 Asking Net Rent $450 5 Asking Net Rent $425 5 Asking Net Rent $450 5 4 4 4 Outgoings TBC Outgoings $123.65 Outgoings $131 4 Outgoings TBC ++ Total Sublease Vacancy: 700sqm 3 3 1,509 3 3 Potential Total Vacancy 1,491sqm 2 Potential Total Vacancy 1,345.7sqm 2 Potential Total Vacancy 1,509sqm 2 Potential Total Vacancy NIL 2 1 1 1 1 NABERS 4.5 Star ++ Total Vacancy: 29,502sqm NABERS 4.5 Star G NABERS 4.5 Star G NABERS 5 Star G G

++ Vacancy Rate: 3.3% 37 36 35 34 33 850 COLLINS STREET 727 COLLINS STREET 727 COLLINS STREET 32 727 COLLINS STREET DOCKLANDS BUILDING 1 BUILDING 2 31 TOWER 4 30 29 28 27 26 26 LEGEND 25 25 24 24 23 23 23 22 22 22 21 21 21 20 20 20 AVAILABLE 2017 19 19 19 18 18 18 17 17 17 16 16 16 15 15 15 14 14 14 AVAILABLE 2018 13 13 13 12 12 12 11 11 11 10 10 10 9 9 9 SUB LEASE Typical Floorplate 2,150sqm 8 Typical Floorplate 2,320sqm 8 Typical Floorplate 2,195 – 2,600sqm 8 Typical Floorplate 2,630sqm 8 NLA 20,975sqm 7 NLA 35,000sqm 7 NLA 70,000sqm 7 NLA 7 6 6 6 6 Asking Net Rent $410 - $445 5 Asking Net Rent $490 5 Asking Net Rent $560 - $600 5 Asking Net Rent $560 - $600 5 4 Outgoings $88.32 4 Outgoings $110 4 Outgoings $100 Outgoings $100 4 2,150 3 3 3 3 Potential Total Vacancy 4,744sqm 2,150 2 Potential Total Vacancy NIL 2 Potential Total Vacancy NIL 2 Potential Total Vacancy NIL 2 444 1 1 1 1 NABERS 3.5 Star G NABERS 5 Star G NABERS 5 Star G NABERS 5 Star G LEGEND 40 CITY ROAD 60 CITY ROAD AVAILABLE 2017 SOUTHBANK SOUTHBANK AVAILABLE 2018 MARCH 2017 29 28 SUB LEASE 27 471 26 25 24 24 23 23 22 22 21 21 SOUTHBANK 20 20 19 19

18 18 Southbank 409 17 17 16 16 15 15 14 14 13 13 SOUTHBANK MARKET SUMMARY 12 12 11 1,319 11 10 10 9 9 ++ Total NLA: 405,737sqm Typical Floorplate 1,315sqm 8 Typical Floorplate 1,300sqm 606 8 NLA 30,248sqm 7 NLA 33,720sqm 7 6 6 ++ Total Direct Vacancy: 16,333sqm Asking Net Rent $450 - $490 5 Asking Net Rent $430 - $520 1,294 5 1,315 4 1,236 4 Outgoings $137.41 Outgoings $135.63 758 3 3 ++ Total Sublease Vacancy: 250sqm Potential Total Vacancy 2,482sqm 2 Potential Total Vacancy 5,796sqm 1,170 2 1 1 37 NABERS 4 Star G NABERS 4.5 Star G 36 ++ Total Vacancy: 16,583sqm 35 34 ++ Vacancy Rate: 4.1% 33 1 SOUTHBANK BLVD 28 2 SOUTHBANK BLVD 32 6 RIVERSIDE QUAY SOUTHBANK SOUTHBANK SOUTHBANK 31 SOUTHBANK 30 29 28 1,874 27 1,874 26 1,874 25 24 1,874 24 23 1,874 23 22 1,874 22 21 1,808 21 LEGEND 20 839 20 19 1,815 19 18 1,808 18 17 1,808 17 16 1,808 16 15 1,808 15 AVAILABLE 2017 14 14 13 13 12 12 11 11 Typical Floorplate 1,550sqm 10 646 + 375 10 9 9 Typical Floorplate 1,780sqm Typical Floorplate 1,874sqm Typical Floorplate 1,550sqm AVAILABLE 2018 NLA 31,313sqm 8 8 8 7 $480 (dir) 982 7 NLA 34,000sqm 650 7 NLA 55,000sqm NLA 31,313sqm Asking Net Rent 6 1,360 6 $400 (sub) 6 6 5 Asking Net Rent $490 5 Asking Net Rent $485 - $575 5 Asking Net Rent $480 5 4 4 Outgoings $133.76 4 Outgoings $149 4 Outgoings $163 Outgoings $139.81 SUB LEASE 3 3 3 3 Potential Total Vacancy 1,569sqm 2 Potential Total Vacancy 650sqm 2 Potential Total Vacancy 23,959sqm 2 Potential Total Vacancy 1,360sqm 2 587 1 1 1 1 NABERS 4.5 Star NABERS 4.5 Star G NABERS 5 Star G NABERS 4.5 Star G G CBRE LIMITED CONFIRMS THAT INFORMATION CONTAINED HEREIN HAS BEEN OBTAINED FROM SOURCES BELIEVED TO BE RELIABLE. WHILE WE DO NOT DOUBT THEIR ACCURACY, WE HAVE NOT VERIFIED THEM AND MAKE NO GUARANTEE, WARRANTY OR REPRESENTATION ABOUT THEM. IT IS YOUR RESPONSIBILITY TO CONFIRM INDEPENDENTLY THEIR ACCURACY AND COMPLETENESS. THIS INFORMATION IS PRESENTED EXCLUSIVELY FOR USE BY CBRE CLIENTS AND PROFESSIONALS AND ALL RIGHTS TO THE MATERIAL ARE RESERVED AND CANNOT BE REPRODUCED WITHOUT PRIOR WRITTEN PERMISSION OF CBRE.