MARKETVIEW SNAPSHOT

Downtown Office, May 2020 Sluggish leasing and new space additions force availability to ten-month high

Figure 1: Downtown Market Activity Apr. 2020 Mar. 2020 Apr. 2019 YTD 2019 YTD 2020 Leasing Activity 0.31 MSF 0.15 MSF 0.45 MSF 2.44 MSF 1.49 MSF Renewals 0.07 MSF 0.00 MSF 0.47 MSF 0.76 MSF 0.62 MSF Absorption (0.30) MSF (0.29) MSF (0.15) MSF (0.47) MSF (0.66) MSF Availability Rate 12.8% 12.4% 13.5% Vacancy Rate 8.2% 8.4% 9.8% Average Asking Rent $63.78 PSF $63.51 PSF $62.25 PSF Taking Rent Index 90.3% 93.8% 92.3% Source: CBRE Research, May 2020.

MARKET HIGHLIGHTS • Monthly leasing activity totaled 310,000 sq. ft., 29% below the five-year monthly average of 440,000 sq. ft. • Year-to-date leasing activity was 1.49 million sq. ft., down 39% compared to the same period last year. • Renewals totaled 66,000 sq. ft. in April, bringing the year-to-date total to 624,000 sq. ft. • The availability rate increased 40 basis points (bps) from last month to 12.8% and was down 70 bps from a year ago. • Net absorption was negative 295,000 sq. ft. in April, bringing the year-to-date total to negative 655,000 sq. ft. • At $63.78 per sq. ft., the average asking rent remained unchanged from the prior month but was up 2% from a year ago. • Sublease availability was 3.0%, with an average asking rent of $57.85 per sq. ft., an increase of 12% year-over-year.

Figure 2: Top Lease Transactions Size (Sq. Ft.) Tenant Address 241,171 Securities & Exchange Commission 100 Pearl Street 65,796 (R) U. S. Department of Education 32 Old Slip 33,000 Walden Macht & Haran LLP 250 11,000 FirmVO 305 Broadway 2,177 Jeffrey B. Melcer, PLLC Source: CBRE Research, May 2020. (R) Renewal (E) Expansion (RE) Renewal and Expansion

MAJOR NEW AVAILABILITIES • 296,000 sq. ft. of direct space at 200 Vesey Street* • 105,000 sq. ft. of Fitch Ratings sublet space at 33 Whitehall Street • 84,000 sq. ft. of Moda Operandi sublet space at 195 Broadway • 40,000 sq. ft. of direct space at * • 40,000 sq. ft. of MediaMath sublet space at * This space was already on the market, but has now fallen within 12 months of tenant possession and therefore was added to statistics.

For more information, please contact: Mike Slattery at +1 212 656 0583 or [email protected] Will Bender at +1 212 895 0938 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.

© 2020 CBRE, Inc. This Snapshot reflects market activity through April 30, 2020. 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.