MARKETVIEW SNAPSHOT

Downtown Office, July 2016 Large deals drive Downtown’s availability below Midtown’s

Figure 1: Downtown Market Activity June 2016 May 2016 June 2015 YTD 2015 YTD 2016 Leasing Activity 0.61 MSF 0.22 MSF 0.39 MSF 2.01 MSF 2.03 MSF Absorption 0.40 MSF (0.19) MSF 0.19 MSF (1.00) MSF 0.57 MSF Availability Rate 11.5% 12.0% 12.0% Vacancy Rate 9.1% 9.1% 9.4% Average Asking Rent $57.47 PSF $57.55 PSF $57.19 PSF Taking Rent Index 93.6% 95.3% 91.8% Source: CBRE Research, July 2016.

MARKET HIGHLIGHTS • Monthly leasing activity totaled 610,000 sq. ft., 39% above its five-year monthly average of 438,000 sq. ft. • Year-to-date leasing activity is up 1% compared to the same period last year. • The availability rate fell 50 basis points (bps) from last month and from one year ago. • Net absorption was 401,000 sq. ft. in June, bringing the year-to-date total to 574,000 sq. ft. • The average asking rent was virtually unchanged over the past month and from the same period last year. • Sublease availability was 1.6%, with an average asking rent of $45.31, up 3% year-over-year.

Figure 2: Top Lease Transactions Size (Sq. Ft.) Tenant Address 182,750 Department of Finance 375 97,228 QBE Reinsurance Corp. 55 Water Street 68,673 Hudson River Trading 50,604 Paradigm, A Talent and Literary Agency 140 37,704 Ameriprise Financial, Inc. 1 World Trade Center (R) Renewal (E) Expansion (RE) Renewal and Expansion Source: CBRE Research, July 2016.

MAJOR NEW AVAILABILITIES • 46,000 sq. ft. of Interrelate Group sublet space at 7 Hanover Square • 29,000 sq. ft. of direct space at 40 • 21,000 sq. ft. of direct space at 115 Broadway • 21,000 sq. ft. of direct space at • 17,000 sq. ft. of direct space at 100 Broadway

For more information, please contact: Mike Slattery at +1 212 656 0583 or [email protected] Beau Garrido at +1 212 984 8153 or [email protected] To learn more about CBRE Research, or to access additional research reports, please visit the Global Research Gateway at www.cbre.com/researchgateway.

© 2016 CBRE, Inc. This Snapshot reflects market activity through June 30, 2016. Disclaimer: Information contained herein, including projections, has been obtained from sources believed to be reliable. While we do not doubt its accuracy, we have not verified it and make no guarantee, warranty or representation about it. It is your responsibility to confirm independently its 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.