Fourth Quarter

4 FOURTH QUARTER

2016 N 40

ISTANBUL OFFICE MARKET GENERAL OVERVIEW

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PROPIN has been providing highly-specialized agency and consulting services with a focus on Turkey’s Office Market to office users, investors, developers and property owners, with a comprehensive range of real estate services since 2005. PROPIN’s customers can rely on professional assistance in property scouting, advisory services and property marketing. PROPIN is also preparing the most up-to-date Office Market reports for your investment decisions

05 PROPIN ACTIVITIES

06 SUMMARY AND FORECASTS

ECONOMIC OVERVIEW

VACANCY RATES

RENTAL RATES

CHANGES IN OFFICE STOCK

25 TAKE-UP

This document has been prepared by Propin. All rights reserved. No part of this publication or any of its content may be reproduced, copied, modified and/or adapted for use without the prior written consent of PROPIN. All rights reserved. 3 Agency Service we provide in lease / purchase processes of corporate real estate users comprises of research, evaluation and reporting phases. In the process of finding convenient real estate, it contains the service steps as determining real estate needs of the company, presenting alternatives as a report, arranging building tours, performing qualitative and financial analyses, conducting negotiations with the landlord and consulting during contract discussions.

For further information, please don’t hesitate to contact us. We would be more than happy to help. PROPIN ACTIVITIES

Propin was established in 2005 with the awareness that specializing enriches the profession. In 2017, we are taking justified pride and joy in completing our twelfth year. Since the very first day we set up our business, a large number of national and international corporations, all of which have been added to our list of references, have clinched our success. We would like to express our thanks to all our clients who chose and trusted us.

As Propin, we’ve taken competing against ourselves as a principle. For the past twelve years, we have acted as an agent in many remarkable relocation projects in the Istanbul Office Market.

Propin mediated the sale of Ronesans Tower, in which exclusive landlord representation was carried out by Propin, to Allianz Insurance in 2015. Consisting of 85,000 m2 of indoor space and 43,000 m2 of office area, this became one of the biggest office sales transactions of Istanbul.

In 2014, we undertook brokerage duties in the lease agreement signed by Turkcell for 32,000 m2 in office area in RonesansBiz Kucukyali Project, in which we provided exclusive landlord representation.

Through the agency of Propin, Bosch leased 16,000 m2 RonesansBiz Kucukyali Project developed with the “Build-to-Suit Model” in 2013. This transaction became a rarely seen pre-lease activity in the Istanbul Office Market.

One of the most noticeable transactions of 2012 concerned the purchase of Smart Plaza Block A, marketed by Propin and with approximately 12,000 m2 in office area, by Anadolu Insurance.

From the very first day of our business, we have always believed that building long-term relationships and customer loyalty is priceless. The very first real estate deal we as Propin worked for as exclusive landlord representative was that of the Doltas Building, in Istanbul, which we marketed in 2006. Leased in 2006, the building, was vacated when a 10-year contract expired. We started to market the building at the beginning of 2016. The leasing process took approximately three months. At the end of this process, the Doltas Building was leased by Atasun Optik, for whom we provided exclusive user representation.

In 2016, Mars Logistics started to receive user representation services from us for their search for a new office. As the result of Propin’s effort, a pre-lease for an area approximately 5,200 m2 in size was executed in Balance Gunesli. This transaction became prominent among the big-scale leasing transactions of 2016 in the Istanbul Office Market.

In 2016, we also concluded lease transactions of Lufthansa in Touch in Papirus Plaza and Deutsche Lufthansa AG Turkey in Apa Giz Plaza; both are part of Lufthansa Group Companies, which has worked with us during their search of real estate processes for years.

The lease in Palladium Tower, in which Propin performed user representation for the Insurance Association of Turkey, was one of the transactions which delighted us the most.

Purchases made by Inci Holding in Businist Office and Inci Aku in Gold Plaza were also among the transactions we mediated.

Working within the scope of our landlord representation service, we provided support in the completion of office searches of many users in the RSD Nispetiye Office in Etiler. Transactions by Axpo Group, Open Turkey and Angelini Medicine were among the leases we completed in that building.

Our effort did not remain limited within Istanbul in 2016. We have strengthened our database and connections in Ankara, Izmir, Bursa and Adana. Working for Bayer has been a pleasing experience, as we continuously provide service for their searches of district offices Out of Istanbul, as well as having completed the leasing process related to their search for a Bursa District Office.

In light of our study about developing markets in “Out of Istanbul”, we prepared feasibility and market research reports about Ankara and Izmir for three different developers pursuant to their needs. We also made sure our clients who have plans to make office investments in Istanbul make the right decisions by providing them with market research and feasibility reports.

You may find more information about other transactions we completed in 2016 on the following pages of our report.

With a succession of successfully completed transactions, we are continuing our brokerage and consultancy efforts around the transactions which will have a tremendous impact in the Istanbul Office Market. At the time of publishing this report, we were not able to add in this document some of the big-scale relocation projects which have reached the final stage and that we have been working on since their signature processes were delayed to 2017. In the following quarters, we will be happy to share with you the transactions which will restore belief in the dynamism of the Istanbul Office Market.

The summary of the latest data from the Istanbul Office Market in the fourth quarter of 2016 can be found below.

The vacancy rate for Class A office buildings in the Central Business District (CBD) increased to 25.7%, and to 13.3% for Class B office buildings. The average rent for Class A office buildings in the CBD was $US 27.6 /m2 /month and $US 15.1 /m2 /month for Class B office buildings.

For Class A office buildings in Out of CBD-Europe, the vacancy rate was determined to be 24.2% and the average rent $US 17.1 /m2 /month.

The vacancy rate for Class A office buildings in Out of CBD-Asia was at a level of 19.7%. The average rent for Class A office buildings was $US 18.5 /m2 /month.

As in the previous quarters, Levent, located in the CBD, commanded the top prime rent in the fourth quarter of 2016. The listed prime rent was $US 45 /m2 /month in this district.

6 www.propin.com.tr Istanbul Office Market experienced a dull period in 2016 due to economic and political issues in Turkey. Continuing growth in stock increased the competitiveness in the market. The offers containing advantageous commercial conditions, alongside given rental discounts, caused negotiations to be completed rapidly.

The total take-up volume in the Istanbul Office Market was 208,000 m2 in 2016. The decline in total take-up volume, which started in 2005, continued in 2016 as well. The total take-up volume in 2016 decreased 21% from 2015, and dropped drastically by 56% from 2014.

In 2016, the total take-up volume was 92,000 m2 in the CBD. 44% of the take-up volume consisted of the completed transactions in the CBD. The total take-up volume in 2016 increased 18% from 2015.

In 2016, when completed lease and purchase transactions are taken into the consideration in terms of size, it was observed that even the largest transactions were lower than 15,000 m2. While transactions of office areas ranging in size from 1,001 m2 to 5,000 m2 constituted 50% of the completed transactions throughout the year, 1,000 m2-sized and smaller offices areas made up 25% of the total take-up. It’s been monitored that these lease and purchase transactions carried out by the small and medium sized companies.

As of the end of 2016, Class A Office Stock in Istanbul increased to 4.7 Million m2. According to this data, it has been determined that office stock in Istanbul increased 71% in the last quinquennium. When stock data for the last quarter of 2016 is analyzed, it can be seen that the Airport District has the largest stock volume in Istanbul. As new office buildings opened up to operation throughout the year, the Class A office stock in this district increased by 18% and surpassed 650,000 m2. Maslak and Kozyatagi followed the Airport District in terms of the largest office stock as of 2016.

As a result of the slowdown in investment decisions, no significant growth in office stock is expected during the post-2018 period. As PROPIN, in the light of up-to-date market data we compiled, we estimate that total office stock in the Istanbul Office Market is going to reach 6.9 Million m2 at the end of 2020.

The growth in the Developing Office Districts, which witnessed an increase in their total office stock by two and half times in the previous four-year period, will continue in the next four years. Especially the office projects which are under construction in Kagithane and West Atasehir will play a crucial role in this. It is projected that office buildings that will be located in the Istanbul International Financial Center (IFC) will be opened to operation in stages between 2018 and 2020. At the end of 2020, this new stock that the IFC will create is going to result in the share of the Developing Office Districts amongst total Class A Office Stock in Istanbul to be 30%.

Even though the reflections of the aforementioned developments on average rents cannot be seen in this report, the decline in average rents will be seen more explicitly in the following periods. The rental rate of completed transactions were beneath the expectations of landlords. Nevertheless, most of the landlords preferred not to adjust rental rates and this prevented average rents from slumping. Competitiveness in the market not only forced landlords to decrease rental rates, but also led them to be flexible in their conditions. Especially currency pegging, the demand for changing the currency of the transactions to Turkish Lira and the practice of a longer rent-free period became the prominent subjects.

When analyzing the office areas In Istanbul, there are twelve main districts with a high office building density. In this report, these office districts are delineated and determined by taking the with respect to international location and user profiles into account. standards, the city is divided Istanbul’s CBD starts at Barbaros Boulevard, continues along Buyukdere Avenue and finishes in the Maslak district. This axis, named the CBD, includes Levent, into a “Central Business District” Etiler, Maslak, Zincirlikuyu-Esentepe-Gayrettepe and Besiktas-Balmumcu. (CBD) and “Out of Central Business Office districts located outside of these areas are defined as Out of CBD. Due to the geographic layout of Istanbul, Out of CBD is divided into two main categories: Districts” (Out of CBD). The CBD Asia and Europe. is a district category densely In this context, Out of CBD-Europe includes the districts of Taksim-Nisantasi, Sisli-Fulya-Otim and the vicinity surrounding the Airport. Out of CBD-Asia populated with office buildings consists of Kozyatagi, Altunizade, Kavacik and Umraniye. and a service sector, where There are Developing Office Districts found on both the Asian and European sides of the city. While Kagithane and Bomonti-Piyalepasa are located in Europe, pedestrian-vehicle traffic is Kartal-Maltepe and Atasehir are located in Asia. hectic, and the demand is the Four districts, shown in green circles on the map below, are the ‘Developing Office Districts’ in the Istanbul Office Market. The data related to these four highest. districts will be illustrated with figures in the coming reports.

Sariyer YAVUZ SULTAN SELIM BRIDGE N

EUROPEAN SIDE Eyup Beykoz ASIAN SIDE

Sisli Ayazaga

Alibeykoy Ayazaga Dam 3 MASLAK G.O.Pasa

FATIH SULTAN MEHMET BRIDGE 11 KAVACIK Celiktepe ETILER KAGITHANE LEVENT 2 Esenler Caglayan 1 Bebek 15 Elmali M.KOY Z.KUYU Dam Okmeydani E.TEPE4 Arnavutkoy 7 G.TEPE Ortakoy BALMUMCU SISLI 5 BOSPHORUS Bayrampasa 16 BRIDGE Beylerbeyi Bagcilar Eyup BOMONTI 6 BESIKTAS TAKSIM Omerli Dam Beyoglu K.cekmece 12 UMRANIYE 8 10 Uskudar Eminonu ALTUNIZADE Camlica Gungoren Acibadem Kucukcekmece Lake Bahcelievler Fatih

Z.burnu 14 Kadikoy WEST ATASEHIR ATATURK Bakirkoy AIPORT 9 KOZYATAGI

MALTEPE Sultanbeyli

LEGEND ISTANBUL OFFICE DISTRICTS DISTRICT CATEGORIES

E-5 Highway 1 LEVENT 2 ETILER 3 MASLAK E-80 Highway CBD 13 Pendik 4 Z.KUYU - E.TEPE - G.TEPE Northern Marmara 5 BESIKTAS - BALMUMCU SABIHA GOKCEN Highway 6 TAKSIM - NISANTASI KARTAL AIPORT 7 SISLI - FULYA - OTIM OUT OF CBD / EUROPE Exit 8 AIRPORT DISTRICT

9 KOZYATAGI County Border 10 ALTUNIZADE 11 KAVACIK OUT OF CBD / ASIA Cross 12 UMRANIYE

8 www.propin.com.tr ISTANBUL OFFICE MARKET DESCRIPTIONS Explanation of some of the terms used in the Propin Office Market FOR SALE-LEASE Levent No.2 Overview are as follows FERKO Class A Office Buildings: SIGNATURE These buildings have a modern technical and mechanical infrastructure, fire safety, generators, parking areas and professional building • 1,600 m2 floor area management. They have the best location and the highest rent value in nd the city’s office market. • Handover in 2 quarter of 2017

• On the Buyukdere Street Class B Office Buildings: When compared to Class A office buildings, Class B office buildings • 1-Minute walking distance to have a lower rent and sale value within the same market. If this type of subway station building is new, it possesses an ordinary design; if the building is old, it has been enhanced to look better. • Total office area: 57,446 m² (Tower) Unit Price: 17,824 m² (Podium) This term represents the ratio of total asked rent value to gross areas for rent.

No agency service charge Vacancy Rate: Please click on www.propin.com.tr for other properties we represent and for detailed information This is the ratio between total vacant areas and total office areas. Rentable Area: This term refers to the total area which is currently being marketed Take-up: during a certain time period. The term covers all sorts of areas, whether This is a gross figure representing the total floor area known to have the land is vacant, occupied or suitable for subleasing in the future. been let or pre-let, sold or pre-sold, to tenants or owner-occupiers within a specified period of time. It does not include any area that is Rent Average: under offer. A property is taken up when the contract is signed. The rental average is the weighted average of the rent of the vacant areas. The weight coefficient of the rental prices is calculated in Pipeline Projects: accordance with the total office area and the vacant area. Listing This project refers to the supply of a particular type of real estate prices are used in the calculations. asset that is in the planning or construction phase, yet not ready for occupancy. Users: The companies of the current office users of the building. Closing Price: This is the rental price which has been agreed upon between the Office User/Tenant Representation: property owner and the tenant and placed in the contract. The mediator who represents the interests of the tenant in a typical renting operation is referred to as the tenant representative. FOR LEASE Atasehır No.1 Listing Price: The rental price requested by the property owner for the rental area is ALLIANZ the listing price. The price can change as a result of negotiations. TOWER Landlord Representation: • 3,850 m² total vacant office area The mediator who represents the interests of the property owner in a typical renting operation is referred to as the property owner • Up to 85% floor efficiency representative.

• View of the Princes’ Islands Common Areas: • %91 occupancy All areas including the main lobby, lift lobbies on the floors, corridors between rentable areas, toilets outside of the offices, and fire exit • Total office area: 43,000 m² stairs shared by the Occupiers in the building are the common areas.

• Users: Allianz Insurance Pre-Rented Area: Ronesans Holding The amount of area in a building that has been rented prior to the end Daikin, Continental date of the construction and prior to occupancy permit date is the pre- rented area.

No agency service charge Completion Date: Please click on www.propin.com.tr for other properties we represent and for detailed information This refers to the completion date of the construction of a building.

ECONOMIC January February March April May June July August September October November December 2014 2015 INDICATORS '16 '16 '16 '16 '16 '16 '16 '16 '16 '16 '16 '16

GDP (%) 3.0 / 4.0 / 4.7 / 4.5**** 3.1 / 4.5**** (-)1.8**** - - 2.6*** 5.2**** 6.1****

GDP per Person 10,395 / 9,257 / ------9,243*** 12,112**** 11,014****

Population (Million) 77.7 78.7 79.8

BIST-100 Index 85,721 71,727 73,481 75,814 83,268 85,221 71,727 76,817 75,406 75,968 76,488 78,536 73,995 78,139

Unemployment Rate (%)* 9.9 10.3 11.1 10.9 10.1 9.3 9.4 10.2 10.7 11.3 11.3 11.3 11.8 -

Exchange Rate** 2.33 2.92 2.97 2.97 2.83 2.81 2.96 2.89 3.02 2.96 3.01 3.11 3.42 3.53 (TRY/USD)

Exchange Rate** 2.83 3.19 3.24 3.24 3.21 3.20 3.29 3.21 3.35 3.30 3.36 3.41 3.64 3.72 (TRY/EUR)

Policy Rate (%)** 8.25 7.50 7.50 7.50 7.50 7.50 7.50 7.50 7.50 7.50 7.50 7.50 8.00 8.00 (One-week Repo Rate)

Inflation (%)* (End-Year) 8.17 8.81 9.58 8.78 7.46 6.57 6.58 7.64 8.79 8.05 7.28 7.16 7.00 8.53

FDI (Million USD) 8,576 11,959 2,875

TABLE NO.1 SOURCE: *TSI- ** CBRT ***Expected by Ministry of Economy MACRO ECONOMY ****According to New Method of Calculation Based on a chained volume index* comparison, the Turkish economy contracted by 1.8% in the third quarter of 2016 when compared to the same quarter of the previous year. The economic growth trend was broken for the first time after 27 consecutive quarters. However, the year-to-date growth was still 2.2% for the first nine months of the year. While household consumption expenditure was lower compared to the level in the same period of the previous year, public consumption expenditures increased and investments decreased in the third period of 2016. According to GDP data calculated using the manufacturing method, only the construction industry grew in real terms among the key industries in the third quarter of 2016. The construction industry delivered a positive performance in the first half of 2016, and grew 1.4% in the third quarter. Recent problems in foreign policy, terrorist incidents, the possibility of a referendum as the result of negotiations related to the Constitutions in the Turkish Grand National Assembly, and re-extension of the State of Emergency were at the top of the national agenda. This is why a period of “wait and see” is to be expected in the economy. All of these created negative expectations and slowed economic activities down. In 2016, the Turkish Lira ended up as the weakest currency among the currencies of the developing countries due to risks stemming from politics, geopolitics, economics and foreign policy. These risks are expected to continue in the immediate future and the Turkish Lira will most probably keep decreasing in value against foreign currencies. After the U.S. elections in November, Donald Trump became President-elect of the United States. Trump will come into office on the 21st January 2017. In this new period, strategical changes about foreign policy and the economy are expected for the U.S. As the result of an interest rate hike, a rally in the U.S. dollar is more than likely. Brent oil prices surpassed $US 55. The reconciliation between OPEC and non-OPEC countries was the reason behind the increase. In 2017, oil prices are expected to range from $US 55 to $US 60. INFLATION MONETARY POLICY The increase in the Consumer Price Index was measured at 1.64% on In the November 2016 meeting, the Monetary Policy Committee raised the a monthly basis. Therefore, it easily surpassed the market expectation policy rate to 8% from 7.5%, which had remained unchanged since February of 0.93%. While the inflation had been expected by the Central Bank of 2015. Thus, the Committee increased the interest rate for the first time Republic of Turkey to stay between 7% and 8%, it was measured at 8.53% since January 2014. The market expectation was that the Monetary Policy at the end of the year. In December, NPPI increased by 2.98% compared to Committee to increase the policy interest rate by 25 basis points. In the same the previous month. The increase in the NPPI was 9.94% on an annual basis meeting, the upper limit of the interest corridor was announced to be 8.5% - a and it also reached the highest level in the last 26 months. boost of 25 basis points. In the December 2016 meeting, the Monetary Policy Committee did not adjust the policy interest rate of 8%, the 8.5% upper limit of the interest corridor, or the 7.25% lower limit of the interest corridor. EXCHANGE RATES [January 2015 - December 2016] 4 3.5 3 2.5 2 1.5 1 0.5 0 Follow us on social media January’15 February’15 March’15 April’15 May’15 June’15 July’15 August’15 September’15 October’15 November’15 December’15 January’16 February’16 March’16 April’16 May’16 June’16 July’16 August’16 September’16 October’16 November’16 December’16

TRY/USD TRY/EUR EUR/USD twitter.com/ Propin_Turkey FIGURE NO.1 SOURCE: THE CENTRAL BANK *TUIK (the Turkish Statistical Institute) revised their method of calculating the Gross Domestic Product. According to this new method, the growth figure is now calculated using a chained volume index (based on 2009 = 100) instead of fixed prices. linkedin.com/company/Propin

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www.propin.com.tr VACANCY RATES IN THE ISTANBUL OFFICE MARKET

VACANCY RATES BY DISTRICT CATEGORY FOR SALE-LEASE Atasehır No.3 2016 The Fourth Quarter MY NEWWORK

50% • 9,896 m² vacant office area • 1,468 m²-sized floor 40% • Handover in 3rd quarter of 2017 30% 25.7

25.3 • Close to the Istanbul Financial 24.2 Center [IFC], at the intersection 20% 19.7 of the E-5 and TEM highways 13.3 13.1 • Walking distance to 10% Yenisahra Subway Station

0% • Total office area: 29,000 m² CBD Out of CBD-Europe Out of CBD-Asia

Class A CBD Out of CBD - Europe Out of CBD - Asia Class B CBD Out of CBD - Europe Out of CBD - Asia No agency service charge Please click on www.propin.com.tr for other properties we represent and for detailed information FIGURE NO.2 SOURCE: PROPIN The Vacancy Rates in the Istanbul Office Market in the fourth quarter of There were no enormous differences between Class A and Class B 2016 are illustrated in Figure 2. office buildings in Out of CBD-Europe in terms of the vacancy rate. It was 24.2% for Class A and 25.3% for Class B buildings. The Vacancy Rate for Class A office buildings in the CBD was at level of While the vacancy rate for Class A office buildings in Out of CBD-Asia was 25.7% and 13.3% for Class B buildings. 19.7%, the vacancy rate for Class B office buildings was measured at 23.3%. VACANCY RATES BY DISTRICT 2016 The Fourth Quarter 50%

40% 32.8 32.0

30% 28.6 26.1 25.6 24.9 24.1 23.8 23.5 21.6 20.8

20% 19.0 17.7 16.4 15.8 14.8 13.8 13.2 11.6 9.3 10% 9.0 7.1 6,2 4,9

0% Levent Etiler Maslak Zincirlikuyu Besiktas Taksim Sisli Airport Area Kozyatagi Altunizade Kavacik Umraniye Esentepe Balmumcu Nisantasi Fulya Otim Gayrettepe

Class A CBD Out of CBD - Europe Out of CBD - Asia Class B CBD Out of CBD - Europe Out of CBD - Asia

FIGURE NO.3 SOURCE: PROPIN Vacancy Rates by District for Class A and Class B buildings in the twelve in the Class A office buildings increased to 16.4% in the fourth quarter business districts of Istanbul are given in Figure 3 [1]. of 2016 because of the relocations of some tenants out of the district. Levent experienced a livelier period when it is compared to the rest In the Airport District, where a stock increase continued throughout of Istanbul in the fourth quarter of 2016. Favorable leasing offers the year, stock growth in the fourth quarter of 2016 was remarkable invigorated leasing transactions in the district. The 5,800 m2-sized owing to the new office buildings having entered into service. As the leasing transaction made in River Plaza by Mey Beverages was the consequence of a spike in demand, the vacancy rate for Class A office transaction with the largest volume. In the fourth quarter of 2016, the buildings in the Airport District took off, reaching 23.8%. vacancy rate for Levent Class A office buildings plunged to 24.1%. In the fourth quarter of 2016, most of the leasing transactions The vacancy rate for Class A office buildings in Etiler increased were undertaken by the users themselves. High demand on limited to 13.2%. Moving decisions of some tenants in Akmerkez played A+ office buildings located at the main axes was observed. a crucial role in this uptick. The latest leasing transaction of the last The pre-lease signed by Alstom in Mermer Plaza which was added to quarter of 2016 was made by Open in RSD Nispetiye Office Building, the stock in the fourth quarter of 2016, was one of the indicators of which is represented by Propin. this situation. In the last quarter of 2016, the vacancy rate for Class A office buildings in Altunizade was recorded at 9.3%. In the last quarter of 2016, Buyuk Ofis Bosphorus was added to Besiktas-Balmumcu office stock. The building, marketed by Propin, The vacancy rate for Class A office stock rose to a level of 23.5%. became the first building added to the stock which has a Class A+ AssisTT’s relocation from Helenyum Plaza had a significant impact on hi-tech infrastructure. In addition to stock increase, the vacancy rate this rise.

[1]When Tat Towers are excluded from the stock, Class A office stock in Zincirlikuyu-Esentepe-Gayrettepe decreases to a level of 19.5%. 12 www.propin.com.tr CHANGES IN VACANCY RATES

IN THE ISTANBUL OFFICE MARKET

CHANGES IN VACANCY RATES OF CLASS A BUILDINGS FOR LEASE Balmumcu No.5 The Last Four Quarters BUYUK OFFICE 35% BOSPHORUS 30% • 4,000 m² vacant office area 24.9 25.7 25% 23.7 25.0 24.2 • 447 m²-sized floor 20% 18.6 17.1 17.1 19.7 • Opportunities to rent the entire 15% 18.0 16.2 16.5 building or by floor 10% • Central location on 5% Barbaros Boulevard

0% • Total office area: 4,000 m² ‘16 Q1 ‘16 Q2 ‘16 Q3 ‘16 Q4

CBD (Buyukdere AVE) Out of CBD - Asia Out of CBD - Europe No agency service charge FIGURE NO.4 SOURCE: PROPIN Please click on www.propin.com.tr for other properties we represent and for detailed information The Changes in the Vacancy Rates on a quarterly basis in 2016 for Class A buildings in “District Categories” are illustrated in Figure 4. CHANGES IN VACANCY RATES The vacancy rate for Class A office buildings in the CBD, which exhibited a drop at the beginning of 2016, started to rise after the OF CLASS B BUILDINGS second quarter. Increasing vacancy rate for Class A office buildings in the CBD throughout the last two quarters was observed as 25.7% for The Last Four Quarters the last quarter of 2016. 35% A climb throughout the year in vacancy rates for Class A office buildings in Out of CBD-Europe is observed. While the momentum in 30% that hike was quite slow, it started to become noticeable in the fourth 25.3 25% 23.5 quarter, especially due to the stock increase in the Airport District. 23.3 19.9 The vacancy rate for Class A office buildings in Out of CBD-Europe 20% increased by approximately 50% from the first quarter of 2016, reaching 24.2% in the fourth quarter of 2016. 15% 13.3 11.3 11.6 10.7 13.1 In the first quarter of 2016, the vacancy rate for Class A office buildings 10% 10.7 was at 17.1% in Out of CBD-Asia. After a decline in the second quarter, 9.7 5% 8.0 it started to rise again. In the fourth quarter of 2016, the vacancy rate for Class A office buildings in Out of CBD-Asia was seen at 19.7%. 0% ‘16 Q1 ‘16 Q2 ‘16 Q3 ‘16 Q4

CBD (Buyukdere AVE) Out of CBD - Asia Out of CBD - Europe FOR LEASE Maltepe No.4 FIGURE NO.5 SOURCE: PROPIN RONESANS The Vacancy Rates of Class B office buildings in the “District Categories” over the last four quarters are shown in Figure 5. MALTEPE • 36,000 m2 vacant office area In the CBD, the vacancy rate for Class B office buildings was on the rise throughout 2016. The vacancy rate, 8.7% in the first quarter of 2016, • 1,600 m²-sized floor ended up at a level of 13.3% in the fourth quarter. • Offices with terrace and balconies In Out of CBD-Europe, the vacancy rate for Class B office buildings was • Handover in 1st quarter of 2018 19.9% in the first quarter of 2016. It showed an upward trend after a • Mall, cinema, gym, halls short period of stability in the third quarter of 2016. The vacancy rate for • Located near to highway Class B office buildings in Out of CBD-Europe was measured at 25.3% in the last quarter of 2016. • 1-Minute walking distance to Esenkent Subway Station The vacancy rate for Class B office buildings in Out of CBD-Asia No agency service charge fluctuated throughout 2016. In the last quarter of 2016, the vacancy rate Please click on www.propin.com.tr for other properties we represent and for detailed information for Class B office buildings in Out of CBD-Asia was 13.1%.

HISTORICAL VACANCY RATES OF CLASS A BUILDINGS 2007 - 2016 The Last Ten Years 50%

40%

30.9 32.0 30% 28.2 25.8 23.7 24.3 25.3 22.7 21.9 20.6 19.9 19.3 19.3 19.0 21.1 20% 17.9 18.1 17.1 16.2 15.9 15.9 16.4 17.6 16.8 14.6 16.3 14.6 15.1 16.6 14.1 14.5 14.7 14.8 14.4 13.6 16.2 19.1 11.7 11.1 10.6 12.6 15.8 16.7 10% 14.0 13.2 13.5 12.2 11.8 12.3 11.0 11.4 10.9 11.2 9.7 9.3 8.9 9.3 5.2 0% 5.4 4.8 ‘07 H1 ‘07 H2 ‘08 H1 ‘08 H2 ‘09 H1 ‘09 H2 ‘10 H1 ‘10 H2 ‘11 H1 ‘11 H2 ‘12 H1 ‘12 H2 ‘13 H1 ‘13 H2 ‘14 H1 ‘14 H2 ‘15 H1 ‘15 H2 ‘16 H1 ‘16 H2

CBD (Buyukdere AVE) Out of CBD - Asia Out of CBD - Europe FIGURE NO.6 SOURCE: PROPIN

Figure 6, based on Propin’s data, depicts the changes in historical The vacancy rate of Class A office buildings in the CBD increased to a vacancy rates for the ten-year period between 2007 and 2016 for Class level of 12.2% in the second half of 2009. A office buildings in all District Categories [2]. As supply and demand equalized after 2009, the vacancy rate in Class The vacancy rate for Class A office buildings in the CBD trended A office buildings decreased to 9.3% in the first half of 2011. Afterwards, upwards between 2007 and 2016. It was determined to be 5.4% in the as the users who occupied large areas in the CBD started to relocate in first half of 2007. The vacancy rate in the CBD, which had witnessed Out of CBD-Asia, the vacancy rate started to climb once again. Even if a number of stock increases and periods of fluctuation depending on the stock which had quickly grown after 2013 continued to meet the demand throughout the last decade, was 25.7% in the second half existing demand, the vacancy rate for the Class A office buildings in the of 2016. CBD increased remarkably and surpassed 20% in the second half of the 2014. As a result of high demand on the CBD, vacancy rate for Class A office buildings plunged to a level of 4.8%, which was also the lowest Overall, the vacancy rate for Class A office buildings in Out of level since the first half of 2008. The completion of projects spurred CBD-Europe showed a tendency to decline in the last decade. The remarkable growth in the CBD. vacancy rate, reaching 32% in the second half of 2007, started to decline due to demand. The vacancy rate in Out of CBD-Europe plunged to a level of 8.9% in the first half of 2012. Then it reached a level of 15.1% FOR LEASE Mecıdıyekoy No.6 in respect of stock increase and it’s been observed that it experienced a fluctuating period afterwards. It’s been determined that there was an uptrend after 2015 when stock increase restarted. The vacancy rate for RONESANSBIZ Class A office buildings in Out of CBD-Europe increased to 21.1% in the MECIDIYEKOY second half of 2016. • 1,495 m² vacant office area Between 2007 and 2016, the vacancy rate in Class A office buildings in • Decorated, garden floor Out of CBD-Asia floated between 12.6% and 19.1%. The vacancy rate, 16.2% in the first half of 2007, went up to a level of 17.9% in the first half • In the center of Mecidiyekoy of 2008. The vacancy rate for Class A office buildings in Out of CBD- Asia entered a period of rises and falls from the second half of 2008. • Total office area: 15,000 m² As new supply into the market were absorbed by incoming demand, • Users: Adidas, Arkeme, the vacancy rate was pushed down to 12.6%, the lowest level of the Axa Insurance, last decade. After 2014 as office stock increased, and the vacancy rate ManPower, Nexans, started to increase correspondently. Despite decreases being seen Walmart-Asda in some quarters, in general the vacancy rate for Class A buildings in Out of CBD-Asia showed a tendency to increase. In the second half of No agency service charge 2016, the vacancy rate for Class A office building in Out of CBD-Asia Please click on www.propin.com.tr for other properties we represent and for detailed information was measured at 19.1%.

[2] You may contact us for Pre-2007 data regarding the Vacancy Rates in Class A Office Buildings by District Category. 14 www.propin.com.tr HISTORICAL VACANCY RATES IN THE ISTANBUL OFFICE MARKET

HISTORICAL VACANCY RATES OF CLASS B BUILDINGS 2007 - 2016 The Last Ten Years 50%

40.0 40% 38.8

32.2 33.6 32.2 31.3 30.9 30% 27.7 29.2 29.5 29.1 28.1 26.5 26.6 24.7 23.8 24.3 22.9 21.2 21.7 21.2 21.0 20% 17.2 19.0 19.3 16.8 17.3 16.1 16.2 15.4 11.4 12.4 11.0 11.3 11.2 10.7 10% 15.0 14.9 8.8 9.1 9.4 9.4 12.9 10.9 10.5 10.6 9.5 9.4 10.6 7.4 7.7 7.7 7.7 6.8 7.5 6.6 6.4 6.8 7.6 0% 5.2 ‘07 H1 ‘07 H2 ‘08 H1 ‘08 H2 ‘09 H1 ‘09 H2 ‘10 H1 ‘10 H2 ‘11 H1 ‘11 H2 ‘12 H1 ‘12 H2 ‘13 H1 ‘13 H2 ‘14 H1 ‘14 H2 ‘15 H1 ‘15 H2 ‘16 H1 ‘16 H2

CBD (Buyukdere AVE) Out of CBD - Asia Out of CBD - Europe FIGURE NO.7 SOURCE: PROPIN

Figure 7 illustrates the Changes in Vacancy Rates Between 2007 and The vacancy rate, having remained relatively constant between the 2016 for Class B Buildings of District Categories [3] . second half of 2012 and second half of 2014, was observed moving upwards beginning in 2015. At the end of 2016, the vacancy rate for In the first half of 2008, the vacancy rate for Class B office buildings Class B office in the CBD climbed to 12.4%. in the CBD dipped to 5.2%, the lowest level ever for this category, remarkable considering the fact that it was 9.6% in the first half of 2007. In the last ten-year period between 2007 and 2016, the vacancy rate for After this period, an upsurge occurred and the vacancy rate reached Class B office buildings in Out of CBD-Europe slumped. Even though a peak of 15%. The decision to relocate support units found in Class this rate reached a peak of 40% in the second half of 2007, it started B office buildings to company headquarters played a key role in this to decrease as office areas started to be leased. Except being 33.6% in upswing. The vacancy rate for Class B office building in the CBD, which the first half of 2010 and 28.1% in the second half of 2013, the vacancy had trended downwards after second half of 2009, was measured at rate maintained its downward trend all the time. Vacancy rate for Class 6.4% in the first half of 2012. B office buildings in Out of CBD-Europe decreased to a level of 19.3% in the second half of 2015. Because of this decrease, it’s been determined that the vacancy rate dropped by 52% compared to its the highest FOR LEASE Levent No.7 rate ever measured in 2007. After bottoming out in the second half of 2015, the vacancy rate of Class B office buildings in Out of CBD-Europe APA GIZ increased in 2016 and ended up at 24.3%. PLAZA The vacancy rate of Class B office buildings in Out of CBD-Asia showed • 3,785 m2 vacant office area a downward trend throughout the past decade. Even the vacancy rate,

• Decorated which was 27.7% in the first half of 2007, fluctuated; it decreased to a level of 8.8% in the second half of 2012. The vacancy rate of Class B • On the Buyukdere Street office buildings in Out of CBD-Asia, hovered between 9% and 11% as of 2013, decreased in 2016. • 1-Minute walking distance to Levent Subway Station

• Total office area: 18,000 m2

No agency service charge Please click on www.propin.com.tr for other properties we represent and for detailed information

[3] You may contact us for Pre-2007 data regarding the Vacancy Rates in Class B Office Buildings by District Category.

AVERAGE RENTAL RATES BY DISTRICT CATEGORY FOR LEASE Umranıye No.8 2016 The Fourth Quarter HELENYUM $50 PLAZA

2 $40 • 3,750 m vacant office area • 290 m²-sized floor $30 27.6 • Convenient to single user

• Decorated

$20 18.5 17.1 15.1 • High visibility from E-5 11.9 $10 10.3 access road

• Total office area: $ 0 3,750 m2 m²/mo CBD Out of CBD-Europe Out of CBD-Asia

Class A CBD Out of CBD - Europe Out of CBD - Asia Class B CBD Out of CBD - Europe Out of CBD - Asia No agency service charge Please click on www.propin.com.tr for other properties we represent and for detailed information FIGURE NO.8 SOURCE: PROPIN The average Rental Rates by “District Category” in the Istanbul Office In Out of CBD-Europe, the rent average for Class A office buildings Market in the last quarter of 2016 are displayed in Figure 8. was at a level of $US 17.1 /m2 /month and $US 11.9 /m2 /month for Class B office buildings.

In the CBD, the rent average for Class A office buildings was measured In Out of CBD-Asia, the rent average for Class A office buildings was at $US 27.6 /m2 /month and $US 15.1 /m2 /month for Class B office seen as $US 18.5 /m2 /month and for Class B office buildings as buildings. $US 10.3 /m2 /month. AVERAGE RENTAL RATES BY DISTRICT 2016 The Fourth Quarter $50

$40 33.7 30.0 29.1

$30 28.3 25.4 23.7 22.8 22.4 21.6 20.8

$20 19.2 17.7 16.9 15.2 14.9 14.6 14.2 12.2 11.7 11.8 10.5 10.2 $10 9.3 9.6

$ 0 m²/mo Levent Etiler Maslak Zincirlikuyu Besiktas Taksim Sisli Airport Area Kozyatagi Altunizade Kavacik Umraniye Esentepe Balmumcu Nisantasi Fulya Otim Gayrettepe

Class A CBD Out of CBD - Europe Out of CBD - Asia Class B CBD Out of CBD - Europe Out of CBD - Asia FIGURE NO.9 SOURCE: PROPIN The average rental rates for Class A and Class B office buildings in the in Besiktas-Balmumcu to reach $US 25.4 /m2 /month. twelve business districts of Istanbul are compared in the Figure 9 [4]. Increasing competitiveness stemming from new office areas added to In the last quarter of 2016, the rent average for Class A office buildings in Levent remained unchanged from the previous quarter, staying at stock in the Airport District decreased the rent average in the district. $US 33.7 /m2 /month. Rental discounts had a major effect upon the The rent average in the Class A office buildings in the Airport District 2 closure of transactions. On the other hand, asked rental rates for the was measured at $US 14.2 /m /month. office areas which were vacated by tenants and second generation office areas rent average was above the average of rental rate of the Discounts were observed in the listing prices of Class A office buildings district. in Kozyatagi. As the result of these discounts, the rent average for Class A office buildings in this district declined to $US 21.6 /m2 /month in the In the fourth quarter of 2016, the rent average for Class A office fourth quarter of 2016. buildings in Maslak decreased to $US 22.8 /m2 /month. Especially Rental discounts in listing price of new generation office buildings contributed to this drop. Rental rates for the office areas filled by tenants who recently relocated to Altunizade were lower than the average of the district. Asked rental rate for the Buyuk Ofis Bosphorus building, which had been Rent average for Class A office buildings in Altunizade declined to added to the stock in the last quarter of 2016, was above the average $US 19.2 /m2 /month in the fourth quarter of 2016. of the district. It also caused rent average for Class A office buildings

[4]The districts’ average rental rates are calculated by landlords on the basis of listing prices declared by landlords to the market. Rooms for negotiation were not taken into the account in the evaluations. 16 www.propin.com.tr PRIME RENT RATES IN THE ISTANBUL OFFICE MARKET

LISTING PRICES OF PRIME RENT BY DISTRICT IN ISTANBUL The Last Four Quarters

$70

$60

$50 45 45 45 45 45

$40 40 40 40 40 40 38 38 38 38 38 35 35 35 35 35 35 33 33 33 33 33 33 30

$30 28 28 28 28 28 28 28 25 25 25 25 25 25 24 22 22 $20 20 20 20 20

$10

$0 m²/mo Levent Etiler Maslak Zincirlikuyu Besiktas Taksim Sisli Airport Area Kozyatagi Altunizade Kavacik Umraniye Esentepe Balmumcu Nisantasi Fulya Otim Gayrettepe

16-Q1 16-Q2 16-Q3 CBD (Buyukdere AVE)16-Q4 Out of CBD - Asia 16-Q4 Out of CBD - Europe 16-Q4

FIGURE NO.10 SOURCE: PROPIN

A comparison of the Listing Prices of Prime Rent by District in Istanbul The prime rent in Out of CBD-Europe was seen in Taksim-Nisantasi and over four quarters in 2016 can be seen at Figure 10 [5]. These figures Sisli-Fulya-Otim. In these districts, demanded rent was measured at are the listing prices declared by the landlords to the market; closing $US 33 /m2 /month. No changes were observed in the Airport District prices may have varied as a consequence of sizable discounts after in terms of top prime rent during 2016. negotiations and currency pegging. Kozyatagi and Altunizade commanded the top prime rent in Out of In the fourth quarter of 2016, Levent was the district where the highest CBD-Asia at a level of $US 28 /m2 /month. Throughout 2016, while the rent was demanded. The figure was $US 45 /m2 /month, as it was in the prime rent remained stable in Umraniye, the top prime rent in Kavacik first three quarters of 2016. increased from its value in the previous quarter.

[5] Rental rates in the chart are the list prices stated by the landlords to the market. The figures related to the buildings which have been constructed and added to the stock are reflected as well. The average rental rates in the districts are shown on page 16.

FOR LEASE Karakoy No.9 FOR SALE-LEASE Ayazaga No.10 RIHTIM SEBA OFFICE BUILDING BOULEVARD • 1,520 m² vacant office are • 1,000 – 3,400 m² floor area

• Option to combine offices • Four consecutive floors on floors

• Office area and a terrace with • Handover in view of the historical peninsula 2nd quarter of 2017

• Close to TEM highway and • 5-minute walking distance E-5 connection roads to tramway and water transportation • Total office area: 65,295 m²

No agency service charge No agency service charge Please click on www.propin.com.tr for other properties we represent and for detailed information Please click on www.propin.com.tr for other properties we represent and for detailed information

CHANGES IN AVERAGE RENTAL RATES OF CLASS A BUILDINGS FOR LEASE Etıler No.12 The Last Four Quarters NISPETIYE $35 OFFICE $30 28.8 28.1 27.8 27.6 • 388 m² vacant office area $25 • Office floors ranging from 190 m² to 388 m² 20.1 19.7 $20 19.0 18.5 • Shell & Core handover 18.6 18.3 18.4 $15 17.1 • 4-minute walking distance to $10 Levent subway station

$5 • Users: Angelini Pharma, Axpo Energy, Smart Invest, $0 Safilo Group, Open, Rsd m²/mo ‘16 Q1 ‘16 Q2 ‘16 Q3 ‘16 Q4 • Total office area: CBD (Buyukdere AVE) Out of CBD - Asia Out of CBD - Europe 2,400 m² FIGURE NO.11 SOURCE: PROPIN Changes in Average Rental Rates of Class A Buildings over the last No agency service charge Please click on www.propin.com.tr for other properties we represent and for detailed information four quarters of 2016 are shown Figure 11. CHANGES IN AVERAGE RENTAL It has been observed that average rental rate for Class A office buildings in the CBD showed a tendency to decline throughout 2016. RATES OF CLASS B BUILDINGS While average rental rate was $US 28.8 /m2 /month in the first quarter The Last Four Quarters of 2016, it decreased to $US 27.6 /m2 /month in the last one. $35

In Out of CBD-Europe, the average rental rate for Class A office $30 buildings fell to $US 17.1 /m2 /month in the last quarter of 2016; however, it had remained stable in the first three quarters of 2016. $25 $20

Throughout 2016, the average rental rate for Class A office buildings 15.5 $15 14.6 15.0 15.1 fell in Out of CBD-Asia. The average rental rate, which was at a level of 12.5 12.0 12.2 11.9 2 $US 20.1 /m /month in the first quarter of 2016, ended up at a level of $10 11.8 11.8 11.3 10.3 2 $US 18.5 /m /month, decreasing by 8% at the end of 2016. $5

$0 m²/mo ‘16 Q1 ‘16 Q2 ‘16 Q3 ‘16 4.Q FOR LEASE Bostancı No.11 CBD (Buyukdere AVE) Out of CBD - Asia Out of CBD - Europe FIGURE NO.12 SOURCE: PROPIN

The changes in the average rental rates of Class B Buildings grouped KOSIFLER in District Categories over the last four quarters of 2016 are shown in PLAZA Figure 12. • 9,279 m² vacant office area The average rental rate of Class B office buildings in the CBD tended to rise in the first three quarters of 2016. In the fourth quarter of 2016, the • 1,031 m² -sized floor average rental rates for Class B office buildings in the CBD plunged to $US 15.1 /m2 /month. • Walking distance to Bostanci subway station In Out of CBD-Europe, the average rental rate for Class B office buildings remained stable throughout 2016. The average rental rate for Class B • Users: Kosifler Insurance, Barilla, office buildings, which was $US 11.8 /m2 /month in the first quarter of Dell, Nokia Siemens Network, 2016, was measured at $US 11.9 /m2 /month in the fourth quarter of Trelleborg Sealing Solutions 2016. Turkey, Cozumevi Management The average rental rate of Class B office buildings in Out of CBD-Asia Consultancy, Beckman Coulter fluctuated throughout the year. While it was $US 12.5 /m2 /month in the No agency service charge first quarter of 2016, it decreased to $US 10.3 /m2 /month in the fourth Please click on www.propin.com.tr for other properties we represent and for detailed information quarter.

18 www.propin.com.tr We represent more than 500,000 m2 office area.

Contact PROPIN staff for the real estates you may interest listed below!

The Landlord Giving us a call is Responsible makes your for Paying offi ce searching You can visit You can reach You can reach You can proceed process easier the building technical and lease or purchase in legal phases Agency as soon as architectural offers easily possible. documents in written! during contract Service Fee rapidly. process.

FOR LEASE FOR SALE STOREY UNIT

Istanbul / Levent FERKO SIGNATURE Tower Office Area : 57,446 m2 Podium Office Area : 17,824 m2 Floor Area (Gross /Net) : 1,722 /1,291 m2 (Tower) : 6,140 /4,514 m2 (Podium) Completion Date : 2nd quarter of 2017

FOR LEASE STOREY UNIT

Istanbul / Atasehir ALLIANZ TOWER Total Office Area : 43,000 m2 Vacant Office Area : 3,850 m2 Floor Area (Gross /Net) : 1,330 /1,067 m2 Floors : 23, 24 and 25th Floors

FOR LEASE FOR SALE STOREY UNIT

Istanbul / West Atasehir MY NEWWORK Total Office Area : 29,031 m2 Vacant Office Area : 9,896 m2 Floor Area (Gross /Net) : 1,468 /1,282 m2 Floors : 9, 11, 12, 13 and 18th Floors Completion Date : 3rd quarter of 2017

For the rest of the list please visit www.propin.com.tr

AGENCY SERVICE FEE: In any case of leasing or purchasing the properties which are marketed by us, clients don’t pay PROPIN in exchange for the service given to your company. This service will be provided to make the process easier and faster for you by the authorization vested in by landlord.

For further information, please don’t hesitate to contact us. We would be more than happy to help. T. 0212 217 8555 HISTORICAL AVERAGE RENTAL RATES IN THE ISTANBUL OFFICE MARKET HISTORICAL AVERAGE RENTAL RATES OF CLASS A BUILDINGS 2007 - 2016 The Last Ten Years

$50

$40

32.9 31.6 30.7 31.5 31.9 30.1 30.7 30.3 29.1 28.4 29.4 $30 27.3 27.7 28.5 27.7 26.5 26.2 27.5

21.0 20.9 21.7 21.7 21.3 19.6 20.1 19.4 20.4 20.2 19.9 $20 19.0 18.6 19.2 18.8 19.8 18.8 19.3 18.8 16.2 19.6 19.7 14.0 18.2 18.6 18.2 19.9 18.5 13.3 17.4 17.8 17.7 17.7 17.9 17.2 16.8 17.8 18.4 17.8 $10 14.1 9.5 9.7 $0 m²/mo ‘07 H1 ‘07 H2 ‘08 H1 ‘08 H2 ‘09 H1 ‘09 H2 ‘10 H1 ‘10 H2 ‘11 H1 ‘11 H2 ‘12 H1 ‘12 H2 ‘13 H1 ‘13 H2 ‘14 H1 ‘14 H2 ‘15 H1 ‘15 H2 ‘16 H1 ‘16 H2

CBD (Buyukdere AVE) Out of CBD - Asia Out of CBD - Europe FIGURE NO.13 SOURCE: PROPIN

Historical Average Rental Rates of Class A Buildings between 2007 and Remarkable rental discounts made after the second half of 2015 2016 broken down by ‘District Categories’ are given in Figure 13 [6]. were the key factors in the decline of average rental rate for Class A in Out of CBD-Asia. The average rental rate of Class A office buildings reached the peak of the last decade in the second half of 2014. The average rental rate Between 2006 and 2008, the increase in supply of new generation started to decrease in the period 2014 - 2016. While average rent was office projects in Out of CBD-Asia and improved market conditions $US 32.9 /m2 /month in the second half of 2014 for Class A buildings, made average rental rate for Class A buildings higher. While the it was measured at a level of $US 27.7 /m2 /month in the second half average rent for Class A office buildings in Out of CBD-Asia was 2 of 2016. In light of this information, it can be said that average rent for $US 13.3 /m /month in the first half of 2007, it soared up to the level 2 Class A office buildings in the CBD has decreased 16% in the last two of $US 20.1 /m /month in the second half of 2008. Even if it had years. decreased in some quarters owing to market conditions, the average rent for Class A buildings in Out of CBD-Asia had tendency to rise When average rental rate of Class A office buildings in the CBD slowly. As a consequence of the incidents experienced in 2016, average is analyzed, one can see that the average rent rate which was rent decreased to a level of $US 18.8 /m2 /month in the second half $US 16.2 /m2 /month in 2007 for Class A was measured at a level of of 2016. $US 31.6 /m2 /month in the second half of 2008 due to advantegous market conditions. The fact that average rents doubled was the most significant indicator of how remarkable the growth was after 2007. The economic crisis experienced in 2009 caused sharp fall in the average FOR SALE Maslak No.13 rent for Class A office buildings in the CBD. The average rent for Class A office buildings in Out of CBD-Europe POLARIS dropped by 10% in the period between 2014 and 2016. Although the average rent for Class A office buildings in Out of CBD- PLAZA 2 Europe was $US 19.7 /m /month in the second half of 2014, it was • 3,000 m² vacant office area $US 17.8 /m2 /month in the second half of 2016.

When the average rent for Class A office buildings in Out of • Three consecutive floors; CBD-Europe is taken into account, it can be seen that the average 1,000 m² each rent ($US 9.5 /m2 /month in the first half of 2007) soared after the second half of 2007. The average rent for Class A office buildings • Decorated in Out of CBD-Europe, which kept on rising until the first half of 2009, remained at the same level in the period between 2009 and • 10-minute walking distance 2011. Afterwards, it entered a period of fluctuation after the second to subway half of 2011.

A 14% decrease occurred in the average rent for Class A office buildings No agency service charge in Out of CBD-Asia between 2014 and 2016. Please click on www.propin.com.tr for other properties we represent and for detailed information

[6] Please don’t hesitate to contact us for pre-2007 information about changes in average rent for Class A office buildings by districts. 20 www.propin.com.tr HISTORICAL AVERAGE RENTAL RATES IN THE ISTANBUL OFFICE MARKET HISTORICAL AVERAGE RENTAL HISTORICAL AVERAGE RENTAL RATES OF CLASS A BUILDINGS RATES OF CLASS B BUILDINGS 2007 - 2016 Last Ten Years

$25

$20 18.1 17.0 17.0 16.6 16.6 16.8 16.3 15.5 15.5 15.8 15.4 15.3 14.8 14.4 14.8 15.0 15.3 15.0 14.8 $15 13.8 14.1 14.2 14.5 13.5 12.5 13.2 13.6 13.1 12.8 11.4 12.2 12.2 11.9 12.2 11.9 11.9 10.8 11.0 13.4 13.4 13.4 12.7 12.2 12.1 $10 9.4 9.2 11.9 11.3 10.7 9.4 10.1 9.7 10.3 10.3 8.9 9.2 9.3 9.5

$5 6.5 6.5

m²/mo ‘07 H1 ‘07 H2 ‘08 H1 ‘08 H2 ‘09 H1 ‘09 H2 ‘10 H1 ‘10 H2 ‘11 H1 ‘11 H2 ‘12 H1 ‘12 H2 ‘13 H1 ‘13 H2 ‘14 H1 ‘14 H2 ‘15 H1 ‘15 H2 ‘16 H1 ‘16 H2

CBD (Buyukdere AVE) Out of CBD - Asia Out of CBD - Europe FIGURE NO.14 SOURCE: PROPIN

Historical Average Rental Rates of Class B Buildings can be seen in the When Class A+ office areas were removed from the supply as the result Figure 14. of the closure of their leasing transactions, the average rent for Class B office buildings in the CBD started to decrease. The average rent, which

2 The last ten-year period of the average rent for Class B office buildings dropped down to $US 14.8 /m /month in the first half of 2016, rose in in the CBD between 2007 and 2016 saw a number of rises and falls. the second half. Average rent rate for Class B office buildings in the CBD, which was $US 10.8 /m2 /month in the first half of 2007, soared and ended up at a The average rent for Class B office buildings in Out of CBD-Europe, level of $US 15.3 /m2 /month in the first half of 2008. The average rent which was $US 6.5 /m2 /month in the first half of 2007, started to between the years of 2008 and 2013 fluctuated, then reached a peak of increase gradually. It reached a peak of $US 13.4 /m2 /month in the $US 18.1 /m2 /month in the second half of 2013. first half of 2014. The average rent for Class B office buildings in Out of CBD-Europe stayed at the same level until the second half of 2015. The average rent rate showed a tendency to fall as from the second half of 2015. The average rent for Class B office buildings in Out of

2 FOR LEASE Maslak No.14 CBD-Europe was measured at $US 11.9 /m /month in the second half of 2016. AKSOY PLAZA While it was $US 9.2 /m2 /month in the second half of 2007, average • 10,116 m² vacant office area rent rate for Class B office buildings in Out of CDB-Asia started to rise • 1,680 – 1,740 – 1,930 m² afterwards. floor area

• Flat floor concept and The average rent rate surpassed a level of $US 10 /m2 /month in the 90% floor area efficiency first half of 2008 and this uptrend continued until the second half of • Balconies on every floor 2014. Average rent for Class B office buildings in Out of CBD-Asia, • Walking distance to subway station which increased by 63% in seven years, started to decrease beginning • Users: Turcas in 2015. The rent average for Class B office buildings in Out of CBD-Asia Petrol, Aksoy Holding decreased to a level of $US 11.3 /m2 /month at the end of 2016. No agency service charge Please click on www.propin.com.tr for other properties we represent and for detailed information

[7]Please don’t hesitate to contact us for pre-2007 information about changes in average rent for Class B office buildings by districts.

The Distribution of Class A Office Stock by District Categories in the 4th quarter of 2016 is illustrated in Figure 15. Developing Office CBD [Levent, Etiler, Maslak, Zincirlikuyu-Esentepe-Gayrettepe, Besiktas- Out of Districts CBD-Asia 16% CBD Balmumcu]: In the 4th quarter of 2016, the stock share of CBD was measured 29% 36% at 36%.

OUT-OF-CBD EUROPE [Taksim-Nisantasi, Sisli-Fulya-Otim, Airport District]: Stock rose in Sisli-Fulya-Otim. In Out-of-CBD Europe, stock share was 19% in the 4th quarter of 2016.

OUT-OF-CBD ASIA [Kozyatagi, Altunizade, Kavacik, Umraniye]: th Out of In the 4 quarter of 2016, stock share of Out-of-CBD Asia fell to 29%. CBD-Europe 19% Developing Office Districts [Kagithane, Bomonti-Piyalepasa, Maltepe-Kartal, West Atasehir]: In West Atasehir, the stock grew in the 4th quarter of 2016. Stock share of Developing Office Districts reached 16% in that quarter. FIGURE NO.15 SOURCE: PROPIN

DISTRIBUTION OF CLASS A OFFICE STOCK BY DISTRICT

2016 The Fourth Quarter * Areas remarked with dark colour indicate the increase in stock compared to previous year.

700,000 18.3% 8% 600,000 0.4% 7.5%

500,000 2.1%

400,000 0%

300,000 2 1 3 0%

200,000 16.1% 2% 4.2% 100,000 3.1% 0%

0 m² Levent Etiler Maslak Zincirlikuyu Besiktas Taksim Sisli Airport Area Kozyatagi Altunizade Kavacik Umraniye Esentepe Balmumcu Nisantasi Fulya Gayrettepe Otim

CBD Out of CBD - Europe Out of CBD - Asia

FIGURE NO.16 SOURCE: PROPIN

Distribution of Class A Office Stock by District for 4th Quarter of 2016 is Despite Maslak being the district that had the biggest office stock in shown in Figure 16. Istanbul, it fell behind the Airport District in terms of volume.

When the data on Class A Office stock distribution for the 4th quarter of Kozyatagi emerged as the district that had the biggest stock in Out 2016 is analyzed, it has been determined that the Airport District has of CBD – Asia. Total Class A Office stock in Kozyatagi approached the the largest stock volume in Istanbul. As new office buildings opened up 500,000 m2 threshold. to operation throughout the year, the Class A office stock in this district soared by 18% and surpassed 650,000 m2. In 2016, due to lack of land allocated for commercial use in the central districts such as Etiler and Taksim-Nisantasi, it’s been observed that After the completion of office investments, the office stock in Maslak the number of new real estate projects was scarce and in the districts in increased 8% and office stock in that district exceeded 600,000 m2. question, projects were developed for residential purposes.

22 www.propin.com.tr PLANNED GROWTH OF CLASS A OFFICE STOCK ANNUAL GROWTH IN STOCK OF CLASS A BUILDINGS BY YEAR 2008 - 2020

7,000,000

6,900,000 6,800,000 6,000,000 6,700,000

5,000,000 5,800,000

4,000,000 4,700,000 4,200,000 3,800,000 3,000,000 3,200,000 2,600,000 2,700,000 2,000,000 2,500,000 2,200,000 2,300,000

1,000,000

0 m² 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

FIGURE NO.17 SOURCE: PROPIN Actual and Forecast Annual Growth in Office Stock of Class A Office This downshift can be attributed to two major reasons. First, when Buildings in the Istanbul Office Market between 2008 and 2020 is office development trends in the whole world are taken into the illustrated in Figure 17. consideration, it can be seen that, after reaching a significant stock boom in the market, the growth rate eventually decelerated. In the While the Istanbul Office Market showed a tendency towards growth reports we as PROPIN prepared in the previous years, we anticipated between 2008 and 2012, the 2012 office stock started to show significant that the Istanbul Office market was going to reach a saturation point growth. Due to the convergence of various office building axes, four after 2018 and the number of office investments were going to be new districts (collectively, the Developing Office District Category) reduced. Apart from the natural slowdown occurring on account of appeared in the Istanbul Office Market. Due to the enlargement of saturation, recent economic and political issues became prominent investment areas with these recently converged office districts, stock among the factors that have an effect on office investments. increase also prominently accelerated as from 2012. As of end of 2016, As a result of the slowdown in investment decisions, no significant 2 Class A Office stock in Istanbul had reached 4.7 Million m . Office stock growth in office stock is expected during the post-2018 period. As in Istanbul also increased by 71% in the latest quinquennium. PROPIN, in the light of up-to-date market data we compiled, we estimate that total office stock in Istanbul Office Market is going to When Figure 17 is studied, the slowdown that is predicted to begin as reach 6.9 Million m2 at the end of 2020. of 2018 draws attention.

FOR LEASE Umranıye No.15 FOR SALE-LEASE Kavacık No.16 ALEMDAG #19 NACAR Store & Office PLAZA • 2,818 m² office area and • 4,476 m² total leasable area 362 m² vacant store area • 2,383 m² office area • 427 m²-sized floor • 2,093 m² store area • Opportunities to rent • 292 m²-sized floor entire building • Opportunities to rent the entire • Handover in 2018 building or by floor • Central location on • Built in accordance with current Alemdag Street regulations • Across from Canpark Umraniye • Handover options for Shell & Core Shopping Center or decorated • Walking distance to subway • Easy access to the FSM Bridge via (now under construction) the TEM Kavacik junction

2,000,000

1,500,000

1,000,000

500,000

0 m² 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

CBD (Buyukdere AVE) Out of CBD - Asia Out of CBD - Europe Developing Office Districts FIGURE NO.18 SOURCE: PROPIN

While the distribution of Class A Office Stock in Istanbul Office Market is demonstrated in Figure 18, the distribution of office stock shares regarding district categories can be seen in Figure 19. The data in both graphs is based on the growth assumption in office stock as the eventual result of the opening of introduced ones and projects under construction in the designated date.

Since office investments, especially in 2014, boomed stock share of CBD has risen to 41%. However, it’s been observed that stock increase in CBD will slow down due to scarcity of land supply and lack of new projects. In spite of the contribution of new projects, especially in Levent and Maslak, to the stock between 2017 and 2020, it’s been anticipated that CBD’s stock share in total stock will decrease to the level of 30%.

Due to the relocation of industrial areas and spread of a rail transportation network, a boom occurred in the Developing Office Districts. The growth in the Developing Office Districts, which witnessed an increase in its total office stock by two and half times in the previous four-year period will continue in the next four years. Especially the office projects which are under construction in Kagithane and West Atasehir will play a crucial role in this. It is projected that office buildings that will be located in the Istanbul International Financial Center (IFC) will be opened to operation in stages between 2018 and 2020. At the end of 2020, this new stock that IFC will create is going to result in the share of the Developing Office Districts amongst total Class A Office Stock in Istanbul to be 30%.

7,000,000

6,000,000 29% 29% 30% 5,000,000 23%

16% 4,000,000 13% 23% 23% 23% 9% 25% 29% 3,000,000 6% 31% 32% 17% 17% 16% 35% 19% 2,000,000 19% 19% 18% 20% 1,000,000 31% 30% 30% 38% 36% 33% 38% 41% 0 m² 2013 2014 2015 2016 2017 2018 2019 2020

CBD Out of CBD - Europe Out of CBD - Asia Developing Office Districts

FIGURE NO.19 SOURCE: PROPIN

24 www.propin.com.tr TAKE-UP IN THE ISTANBUL OFFICE MARKET

TAKE-UP VOLUME 2008 - 2016

450,000 1,800,000

400,000 1,600,000 373,000

350,000 339,000 1,400,000

300,000 1,200,000 265,000 250,000 1,000,000 234,000 208,000 200,000 800,000

150,000 600,000 118,000 100,000 98,000 400,000 88,000 79.000

50,000 200,000

0 0 m² 2008 2009 2010 2011 2012 2013 2014 2015 2016 m²

Completed Transactions Cumulative Sum

FIGURE NO.20 SOURCE: PROPIN NINE YEARS TOTAL TAKE-UP: 1,800,000 m²

The ‘Take-up Volume’ in the Istanbul Office Market between 2008 and negotiation to be completed successfully. Predominance of the lease 2016 is shown in Figure 20. and purchase transactions carried out by the companies in search of small or medium-scale offices was observed in 2016. While transactions The total take-up volume in the Istanbul Office Market was 208,000 m2 of office areas ranging in size from 1,001 m2 to 5,000 m2 constituted in 2016. A total of nearly 1.8 Million m2 in office market transactions 50% of the completed transactions throughout the year, 1,000 m2- took place between 2008 and 2016. sized and smaller offices areas constituted 25% of the total take-up.

The drop in take-up volume observed in 2015 continued into 2016. The volume of transactions decreased by 21% from 2015 to 2016. In 2008, the market witnessed lease or corporate purchases in the total amount FOR SALE Mecıdıyekoy No.17 of 88.000 m2. Between 2010 and 2014, alongside the supply of office areas, the improving of market conditions provided momentum to the HONEYCOMB rate and volume of take-up. 2014 was the year in which the Istanbul Office Market hit a record high, with 373,000 m2 in take-up volume. OFFICE • 1,507 m² vacant office area Compared to previous years, 2015 saw a general lack of activity. • Office floors ranging from Take-up volume in 2015 dropped 29% compared to 2014. Two general 58 m² to 595 m² elections and political issues were the main reasons for the recession. • 410 m²-sized floor Two massive lease transactions closed before the election in June of 2016 caused 2016 to be ranked higher than 2015 in terms of take-up • Handover in 2nd quarter of 2017 volume. Due to the remarkable size of the completed transactions, take • In the center of Mecidiyekoy up volume was considered large. However, the number of completed • 2-minute walking distance transactions was of a moderate quantity. to subway and metrobus

Due to the economic issues in Turkey, 2016 was a dull year for the Istanbul • Total office area: 3,529 m² Office Market. A stock increase caused a spike in competitiveness as well. Rent discounts offered by landlords and advantageous leasing No agency service charge Please click on www.propin.com.tr for other properties we represent and for detailed information packages due to this competition were the major factors that helped

TAKE-UP DISTRIBUTION BY DISTRICT CATEGORY 2016

200,000

175,000

150,000

125,000

100,000 92,000

75,000

50,000 44,000 30,000 33,000 25,000 9,000 0 m² CBD Out of CBD - Europe Out of CBD - Asia Developing Office Off Location Districts Office Districts

TOTAL TAKE-UP: 208,000 m2 FIGURE NO.21 SOURCE: PROPIN

The Distribution of Take-Up across District Categories is seen In that remarkable volume, completion of the sale of Ronesans Tower in Figure 21. to Allianz Insurance, in which Propin acted as agent, played a key role.

Total take-up in the Istanbul Office Market in 2016 was 193,000 m2. The In the Developing Office Districts, where a stock increase was recently transactions completed in the CBD represented 44% of the whole take- witnessed, 33,000 m2 in take-up volume was seen. up in the Istanbul Office Market in 2016. A total of 92,000 m2 lease or purchase transactions were completed in the CBD. Take-up volume in FOR LEASE Levent No.18 the CBD increased 18% from 2015 to 2016.

The total take-up volume in Out of CBD-Europe was 30,000 m2. The APA NEF number of new generation office buildings increased in the Airport PLAZA District, where office investments have intensified. In spite of the • 6,886 m2 vacant office area existence of rapidly growing stock, a scarcity of transactions indicated • 760 m2-sized offices the lack of interest in this district. The largest transaction in the district in a single floor was that of a 13,100 m2-sized detached building leased by Turkish Airlines. The Japanese firm Mars Logistics, which gave Propin exclusive • Decorated

2 representation rights, pre-leased 5,155 m at Balance Gunesli, a new • On the Büyükdere Street generation A+ office building. This was another remarkable transaction • 1-Minute walking distance to conducted in the district. Levent Subway Station

• Total office area: Throughout 2016, in office market, transactions totaling approximately 12,117 m2 44,000 m2 in size were completed in Out of CBD-Asia constituting

21% of total take-up volume. In Out of CBD-Asia in 2015, total take-up No agency service charge volume was measured at 110,000 m2. Please click on www.propin.com.tr for other properties we represent and for detailed information

26 www.propin.com.tr TAKE-UP LIST IN THE ISTANBUL OFFICE MARKET 2016 Most of the notable transactions that took place in the Istanbul Office Market during 2016 are listed in the following table[8].

Building Office District Gross Leasable Area (m2) Firm Agency Process

Stand Alone Gunesli 13,100 Turkish Airlines (THY) Lease Serbetci Building Esentepe 11,000 BRSA Savings Deposit Insurance Fund Lease Ciftciler Tower Zincirlikuyu 10,400 Garanti Bank Purchase Nidakule Atasehir South West Atasehir 6,231 Teknosa Lease River Plaza Levent 5,818 Mey Alcoholic Beverages Lease Balance Gunesli Gunesli 5,155 Mars Logistics Pre-Lease DLP No1 Dolapdere 4,535 Yargici Clothing & Accessories Lease Orjin Maslak Maslak 4,260 British American Tobacco Lease AND Plaza Kozyatagi 4,118 Alternatif Bank Lease YY Altunizade Business Center Altunizade 4,000 Boston Scientific Lease AND Plaza Kozyatagi 3,738 The Nielsen Company Media Lease Yilmaz Plaza Umraniye 3,500 Sutas Lease Sisli Plaza Sisli 3,200 Arvato Telecommunications Lease Propa Office Zincirlikuyu 3,000 Doctors Lease Barbaros Plaza Besiktas 3,000 Alarko Contracting Group Lease Selenium Retro Atakoy 2,750 Turk Havak Purchase Kiler Building Kavacik 2,700 Kulunkoglu Organization Lease Mermer Plaza Altunizade 2,700 Alstom Power Turkey Lease Maslak Link Maslak 2,585 Jones Lang LaSalle (JLL) Lease MOB Maslak 2,500 Arkan Ergin I.Independent Audit Lease Nurol Park Gunesli Gunesli 2,500 Is Bankasi Gunesli Kurumsal Sube Lease Flat Office Istanbul Eyup 2,492 Medical Park Lease MOB Maslak 2,490 IE Ulagay Medicine - Menarini Group Lease Teknopark Kurtkoy Kurtkoy 2,400 Kordsa Purchase Esas Office Park Maltepe 2,226 Izocam Lease Terrace Fulya Fulya 2,100 Grey Worldwide Lease Doltas Building Gayrettepe 2,000 Atasun Optic Lease Vera Plaza Altunizade Altunizade 1,900 Omron Electronics Lease MOB Maslak 1,868 Goodyear Lease Papirus Plaza Kagithane 1,845 Lufthansa Global Tele Sales Lease DLP No1 Dolapdere 1,845 Netlog Global Lease Bitas Levent 1,780 Kolektif House Lease Nida Kule - Levent Levent 1,707 Puma Pre-Lease Esas Office Park Kartal 1,700 Lactalis Turkey Lease Esas Office Park Kartal 1,700 Seher Food Lease Monumento Kartal Kartal 1,638 Draeger Medical Lease Premier Campus Office Kagithane 1,600 Fer Construction Lease MOB Maslak 1,531 Recordati Medicine Lease Akasya Acibadem Kozyatagi 1,518 Lilly Medicine Lease Bab Plaza Kagithane 1,500 Tekzen Purchase Akkom Office Umraniye 1,498 Globelink Unimar Lease

[8] Stand alone building gross area does not include car parking areas. SOURCE: PROPIN

Building Office District Gross Leasable Area (m2) Firm Agency Process

Astoria Esentepe 1,445 Mars Turkey Lease Maslak Link Maslak 1,415 Astellas Pharma Medicine Lease Sun Plaza - Kule Maslak 1,400 Allergan Medicine Lease River Plaza Levent 1,369 Pirelli Tyres Lease River Plaza Levent 1,369 Baxalta Lease Businist Office Fikirtepe 1,365 Inci Holding Purchase AND Plaza Kozyatagi 1,312 Gilead Sciences Medicine Lease Spine Tower Maslak 1,301 HD Group/HD Iskender Lease MOB Maslak 1,245 B,Braun Medical Lease Istanbloom Zincirlikuyu 1,100 Autoban Architecture Lease Palladium Tower Kozyatagi 1,096 TSRBS Lease Gold Plaza Maltepe 1,072 Inci Accumulator Purchase Levent Loft Levent 1,050 OBSS Lease Tekfen Tower Levent 1,045 Bank of China Lease Nida Kule - Levent Levent 1,011 Benetton Pre-Lease Beybi Giz Plaza Maslak 1,000 Eko Finance Factoring Lease Seba Center Istinye 1,000 IBS Insurance & Reinsurance Brokerage Lease Akmerkez Etiler 1,000 Embil Medicine-Exeltis Pharmaceuticals Lease Akmerkez Etiler 1,000 Tacirler Investment Lease Akmerkez Etiler 1,000 Tekfen Real Estate Group Lease Beyaz Plaza Sanayi Mah. 1,000 Global Investment Holdings Lease Erg Business Center Kagithane 1,000 UL-VS Laboratory Services INC, Lease Levent 199 Levent 993 Odea Bank Lease Akkom West Umraniye 986 Total Oil Turkey Lease Maslak Link Maslak 960 Havas Media Lease AND Plaza Kozyatagi 926 St. Jude Medical, Inc, Lease AND Plaza Kozyatagi 921 Enuygun,com Lease AND Plaza Kozyatagi 921 Adecco Group Lease Dogus Center Etiler Etiler 900 Mastercard Lease Kuris Kule Kartal 871 PPG Industries Lease Varyap Meridian West West Atasehir 853 Daihatsu Turkey Lease Buyaka Umraniye 845 Med Medicine /Teva Lease AND Plaza Kozyatagi 797 Kimberly Clark Lease Kanyon Levent 763 Bloomberg Lease 195 Buyukdere Plaza Levent 757 The Swatch Group Turkey Lease River Plaza Levent 711 Osram GmbH Lease Nurol Plaza Maslak 710 Vodafone Turkey Lease Flat West Istanbul Eyup 700 Reynaers Aluminium Lease Spring GIZ Plaza Maslak 700 Park Bravo Lease Windowist Maslak 651 Huawei Lease Groupama Plaza Maslak 635 Turkey Agricultural Credit Cooperation Lease

[8] Stand alone building gross area does not include car parking areas. SOURCE: PROPIN 28 www.propin.com.tr TAKE-UP LIST IN THE ISTANBUL OFFICE MARKET 2016 Most of the notable transactions that took place in the Istanbul Office Market during 2016 are listed in the following table[8 ].

Building Office District Gross Leasable Area (m2) Firm Agency Process

RSD Nispetiye Office Etiler 618 Angellini Medicine Lease Gulsan Plaza Kavacik 614 ABC Detergent Lease Akmerkez Etiler 611 Bain & Company Turkey Lease Beytem Plaza Sisli 600 Vmi Vertrieb Lease Stand Alone Umraniye 600 Baumit Lease Dogus Center Etiler Etiler 600 Walt Disney Lease Ercan Han Gayrettepe 580 Satko GPS Tracking Systems Lease Yilmaz Plaza Umraniye 566 Unamic HCN A Xerox Company Lease River Plaza Levent 566 Samsung Electronics Lease Esas West Park Maltepe 566 Mass Group Lease Ulugol Plaza Kozyatagi 556 Enercon Turkey Lease Nevzat Business Center Bostanci 550 Topkapi Medicine Lease Palladium Tower Kozyatagi 548 Monsanto Food Lease Papirus Plaza Kagithane 548 Safir Counselling & Training Center Lease Olive Plaza Maslak 530 Adesso Turkey Lease Modern East Umraniye 500 Delphi Packard Lease Spring GIZ Plaza Maslak 500 Adco Food / Tadco Food Lease Partas Center Kozyatagi 500 TechMahindra -LCC Lease Akmerkez Etiler 500 Discovery Communications Lease Maslak No/1 Maslak 460 Turkish Clubs Union Association Lease Papirus Plaza Kagithane 451 PeakUp Information Technologies Lease Goztepe Nida Kule Kozyatagi 450 Chr. Hansen Lease Palladium Tower Kozyatagi 442 Acemar Lease Maden Business Center Altunizade 440 Bitaksi Mobile Lease Pasific Plaza Kozyatagi 440 Pos Corp. Lease Akmerkez Etiler 433 Iron Mountain Turkey Lease Ulugol Plaza Kozyatagi 425 Ulugol Automotive Lease AND Plaza Kozyatagi 410 Tricon Energy Lease Palladium Tower Kozyatagi 401 Garanti Retirement Lease Palladium Tower Kozyatagi 401 Covestro Lease Varyap Meridian West Atasehir 400 Zebra Technologies Lease Sun Plaza - Kule Maslak 390 Cevahir Tourism Lease Sun Plaza - Kule Maslak 390 Koksal Law Office Lease Sun Plaza - Kule Maslak 390 Magrabi Optic Lease RSD Nispetiye Office Etiler 388 Axpo Group Lease RSD Nispetiye Office Etiler 388 Safilo Group Lease RSD Nispetiye Office Etiler 388 OPEN Lease River Plaza Levent 380 BGC Partners Lease Ulugol Plaza Kozyatagi 375 Geser Parex Lease Palladium Tower Kozyatagi 352 Erciyas Steel Pipe Lease Noramin Business Center Maslak 350 Renee Adworks Lease

[8] Stand alone building gross area does not include car parking areas. SOURCE: PROPIN

Building Office District Gross Leasable Area (m2) Firm Agency Process

Ozsezen Plaza Zincirlikuyu 350 Agrana Fruit Lease Windowist Maslak 350 Talesun Solar Energy Lease RSD Nispetiye Office Etiler 336 Smart Invest Lease Levent 199 Levent 300 Turkcell Lease Varyap Meridian Office West Atasehir 300 Gigaset Lease CZD Plaza Kozyatagi 300 Vanguard Turkey Logistics Lease Siddiklar Plaza Kozyatagi 300 Smartiks Intelligence Technology Lease Duran Business Center Levent 300 Brady Corporation Lease Papirus Plaza Kagithane 298 Yamans Construction Lease CZD Plaza Kozyatagi 296 Motul Turkey Lease Monumento Kartal Kartal 293 Roche Diagnostics Lease Maya Plaza Akatlar 287 Oyak Enterprise Consultancy Lease Maya Akar Center Esentepe 272 British Council Lease Apa Giz Plaza Levent 270 Deutsche Lufthansa AG Turkey Lease Papirus Plaza Kagithane 252 Sis Station Infrastructure Solutions Lease GIZ 2000 Plaza Maslak 250 Autorola Turkey Lease Eskiyapanlar Business Center Kozyatagi 250 Delonghi Better- Kenwood Lease Ucgen Plaza Kozyatagi 250 KGM Energy Lease Harmanci Giz Plaza Maslak 250 Lyoness Lease Papirus Plaza Kagithane 243 Plaza Cubes Papirus Plaza Lease Papirus Plaza Kagithane 243 Ventura Customs Brokerage Lease Regus Buyaka Umraniye 240 A. Schulman Plastic Lease Dural Plaza Kozyatagi 230 Harting Lease Suzer Plaza Taksim 230 BNY Mellon Lease My Office West Atasehir 227 Schindler Türkeli Lift Lease IZ GIZ Plaza Maslak 225 Verusa Holding Lease IZ GIZ Plaza Maslak 225 Progıda Lease Suzer Plaza Taksim 200 British Chamber of Commerce Turkey Lease Ata Plaza Besiktas 200 Cetech-Ce Lease Eser Business Center Zincirlikuyu 200 Sifar Medicine Lease Bilsar Building Sishane 200 Grayling Lease Buggy Building Balmumcu 190 East West Oil Lease Vadi Istanbul Ayazaga 170 Benson Lease No Name Kadıkoy 170 Biomed Medicine Lease Itower Bomonti 167 Proje Turk Architecture Lease Papirus Plaza Kagithane 166 Pure Energy Lease Apa Giz Plaza Levent 150 Swiss International Airlines Lease Apa Giz Plaza Levent 150 Austrian Airlines Lease Regus Kagithane Office Park Kagithane 150 Optimum Printing & Promotion Lease No Name Suadiye 150 Setur Office Lease Palladium Tower Kozyatagi 146 Telediyalog Lease Ari Teknokent Maslak 104 Blesh Lease

[8] Stand alone building gross area does not include car parking areas. SOURCE: PROPIN 30 www.propin.com.tr PLEASE CONTACT US FOR FURTHER INFORMATION [email protected] 0212 217 8555

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