SURVEY of DOWNTOWN OFFICE SPACE May 2017

SURVEY OF DOWNTOWN OFFICE SPACE May 2017

ROCHESTER DOWNTOWN DEVELOPMENT CORPORATION 100 Chestnut Street, Suite 1910 ~ Rochester, New York 14604 (585) 546-6920 ~ (585) 546-4784 (fax) [email protected] ~ www.rochesterdowntown.com ~ The Rochester Downtown Development Corporation’s

SURVEY OF DOWNTOWN OFFICE SPACE, May 2017

Executive Summary

RDDC tracks nearly every building located in the downtown market, defined as everything within what was the Inner Loop plus High Falls, Upper East End, and Alex Park. Downtown’s commercial building inventory contains the region’s oldest office structures as well as its newest towers. This year, RDDC is tracking 10 million square feet in 115 office buildings. Of these, 86 are competitive buildings totaling 6.9 million square feet – 69% of all downtown space.

RESULTS SNAPSHOT

The May 2017 downtown office market story was mixed. Class “A” improved for the second year in a row, with Class “A/R” also showing signs of improvement. But overall vacancy was up this year, and absorption ran negative by 131,193 square feet since May 2016. Classes “B”, “Non-Traditional” and “Medical” all recorded increased vacancy, which was not anticipated. With changes in several buildings, the downtown office inventory grew by 63,266 square feet.

Alexander Park and St. Joseph’s Park were the strongest neighborhoods for office space tenancy in 2017. Those recording the highest vacancy were the Midtown District and High Falls. Two of the remaining six downtown commercial neighborhoods notably saw significant improvement in occupancy – Washington Square and Manhattan Square.

While the office market is undeniably weaker than in previous decades, there are a number of points worth making:

 CBRE Rochester reports significantly more tenant interest in downtown space than they’ve seen in the past 20 years.  A total of 1.65 million square feet of office space has been removed from the downtown inventory since 2014 for conversion to residential use. The Midtown District continues to be more heavily impacted by this trend, which overall has been consistently “rightsizing” the downtown office market by re-purposing empty space.  The vitality being created by the growth in the housing market as well as continuing development in the Downtown Innovation Zone (DIZ) represent important factors that will drive higher demand for downtown office space in the coming years. The growth of DIZ companies represents real net new occupancy, and one with a significant expectation of growth – some of it rapid.  Two major tech incubators will have opened in Sibley Square by the first quarter of 2018. As these two efforts gain traction, the opportunity to create a cluster of new tech tenants in surrounding space will be very real.  The Millennial tech workforce is demanding an urban presence, and downtown’s unique building stock and savvy developers offer highly desirable space for this growing population of knowledge industry workers and CEOs.  A significant, wide-spread, and concerted effort to grow the regional economy will create greater opportunity to advance commercial market success in downtown office buildings. (Executive Summary, May 2017, page two)

A small group of buildings with unique circumstances continues to more negatively impact the market, although more buildings saw an erosion of occupancy this year. We are also watching two key properties that will ultimately have a major impact on the downtown office market – Kodak Office and Xerox Tower. Both could be impacted by internal corporate decisions to downsize their Rochester presence and/or to consolidate real estate holdings and tenancy elsewhere.

CLASS “A” IMPROVED FOR SECOND YEAR

Class “A” space saw improvements in both occupancy and absorption between May of 2016 and May of 2017. Vacancy dropped to 22.6% (down 1.5%), and absorbed nearly 125,000 more square feet of space since last year. It also saw the reintroduction of over 106,000 square feet of space into the downtown market, 79,000 of which was in Tower280. Vacancy rates, however, still remain among the highest for Class “A” since RDDC began tracking the market in 1983.

Buildings showing improved occupancy included Three City Center (up 76,249 s.f., M&T Bank); The Metropolitan (36,422, Datto); and Five Star Bank Plaza (23,682, Five Star Bank). Four properties saw occupancy drop, including Corporate Place (down 70,250 s.f., loss of M&T Bank); First Federal (33,550, Bergmann Associates); Riedman Tower (6,993); and, Legacy Tower (5,455).

This category contains 12 buildings with a total of 3 million square feet of net leasable office space, and comprises 44% of the competitive office space market downtown.

CLASS “A/R” VACANCY DROPS

Vacancy in Class “A/R” dropped to 18.6%, down 1.3% over last year. Absorption increased slightly by 7,555 square feet. Four buildings recorded increases in occupancy since May 2016: 300 State Street (up 7,000 s.f.); Harro East (2,400); Temple (2,220); and, Parry (1,600). The Knowlton building saw decreased occupancy (4,900).

One of the two smallest categories in the competitive market downtown, “A/R” represents high- end renovated space in older and more historic buildings. It constitutes 8% of all competitive office space downtown in 12 buildings with a total of 571,502 square feet of space.

CLASS “B” – A COMPLEX STORY

After plummeting to a 22-year low in 2015, Class “B” vacancy rose again in 2017 to its highest rate, 32.3%. Not surprisingly, the Class “B” category saw a negative 233,743 square foot absorption over May of 2016. Notably, when Kodak’s Building 10 is artificially removed from the numbers, the vacancy for Class “B” space drops to 26.6%. It should also be noted that one property with an unresponsive out-of-town owner (Executive Building) would have further increased the vacancy rate in this space category had they responded to the survey.

(Executive Summary, May 2017, page three)

Class “B” lost 53,370 square feet of space since last year. Five buildings recorded gains in occupancy: Kodak’s Building 10 (6,747 s.f.); 12 Aqueduct Street (2,600); One East Avenue (2,403); 100 Liberty Pole Way (2,000); and, 37 N. Washington (1,600).

Nine experienced lower occupancy: Sibley Square (200,000, loss of MCC Downtown Campus); Alex Park/200 Alexander (16,000); Crossroads (14,300); Wilder (7,400); Valley Building (5,660); 150 State Street (4,128); Reynolds Arcade (3,500); Radisson Hotel (3,015); and, Court- Exchange (400).

The Class “B” category now comprises 37% of the competitive office space market downtown in 33 buildings with 2.58 million square feet of space.

NON-TRADITIONAL SPACE VACANCY RISES

Vacancy in the “Non-Traditional” category rose to 18.4% (up 6%) – still the second lowest vacancy rate recorded since the category was created in 2003. Although the category grew by a modest 2,500 square feet with the reintroduction of the Jonathan Child House, non-traditional space tenants occupied 32,307 less square footage than they did in May 2016.

Buildings reporting increases in occupancy included: Water Street Commons (up 11,033 s.f.); Cascade Center (4,400); 234 Mill Street (1,000); and, Cascade Commons (523). Occupancy dropped since last year in eight buildings: Columbus Building (15,000 s.f.); 40 Franklin (6,990); Michaels Stern (5,301); Seventeen Main Street East (4,000); Rochester Club (3,950); 41 Chestnut (3,500); Fitch (2,638); and, Buckingham Commons (2,586).

Created in 2003, the “Non-Traditional” Class category has been generally defined to include buildings with the following characteristics:

▪ Unconventional floor plates, layouts, spaces and features; ▪ Locations that are often off-center, out of the primary commercial neighborhoods.

By definition, most of these buildings are difficult to market as conventional office space. However, many are considered trendy and tend to attract innovation companies and creative enterprises (e.g., tech companies, architecture and design firms, marketing and advertising companies, artists). The “Non-Traditional” class comprises 8% of downtown’s competitive office market, totaling 575,065 square feet in 25 buildings.

MEDICAL SPACE DOING WELL

This category includes doctors’ offices, one of Rochester General’s Imaging Department locations, a pharmacy, a University of Rochester medical clinic, and blood lab space. Vacancy is up slightly this year (fully occupied over the past four years), but still remains incredibly low at 3.7%. The two properties reporting lower occupancy were Alex Park/222 Alexander (4,500 s.f.) and, the Medical Offices at Alex Park (1,076).

(Executive Summary, May 2017, page four)

The smallest category, RDDC added “Medical” space in the 2010 Survey. It contains four buildings with 150,292 square feet of space, and comprises 2% of downtown’s competitive office market. Notably, 92% of downtown’s “Medical” space is located in the Alexander Park neighborhood, on or near the former Genesee Hospital campus.

NON-COMPETITIVE SPACE GROWS SLIGHTLY

Defined as buildings where the owner is the sole occupant, the 29 “Non-Competitive” buildings downtown (Class “N/C”) in 2017 totaled 3.1 million square feet, up 7,929 square feet since last year.

Class “N/C” includes such properties as Kodak Office, City Hall, and ESL Federal Credit Union, and are all treated as 100% occupied in the Survey of Downtown Office Space reports. “Non- Competitive” space now constitutes 31% of the total downtown office market. Notably, the remaining Kodak Office space looms as a future issue, in spite of spinning off the Carestream and MCC components, and reclassifying its empty Building 10 to Class “B” status. Kodak’s world headquarters once housed 5,000 employees but now houses only 400.

VACANCY VARIES BY DOWNTOWN NEIGHBORHOOD

The downtown commercial market breaks out into nine distinct neighborhoods, each with its own character and typical tenant profile. The May 2017 numbers for competitive space by neighborhood are as follows:

NET LEASABLE CHANGE SINCE NEIGHBORHOOD OFFICE S.F. VACANT MAY 2016

Midtown District 981,039 49.3 % Up 12.6 % High Falls 573,967 40.5 Down 8.2 % Manhattan Square 363,400 29.4 Down 6.6 % East End/Upper East End 576,731 23.2 Up 18.2% Washington Square 1,657,729 20.2 Down 4.0 % Cascade District 349,507 19.3 Up 2.5% Four Corners 1,629,462 19.1 Up 1.8% St. Paul Quarter 155,632 15.2 Down 1.4 % Alex Park 532,972 6.1 Up 4.6% St. Joseph’s Park 74,500 5.4 Down 12.5 %

This year, Alex Park and St. Joseph’s Park were the strongest neighborhoods for office space tenancy. Two neighborhoods saw significant drops in vacancy – Washington Square and Manhattan Square. The neighborhoods holding their own in the double-digit “new normal” for the downtown office market this year include the Manhattan Square, East End/Upper East End, Washington Square, Cascade District, Four Corners, and St. Paul Quarter neighborhoods. The highest collective vacancy this year can be found in the Midtown District and High Falls neighborhoods.

(Executive Summary, May 2017, page five)

DOWNTOWN IS GROWING

Future Impact of the DIZ. The continued growth of the Downtown Innovation Zone (DIZ) reflects a new market for downtown space involving technology-based and creative class tenants. As of November 2017, RDDC is tracking 145 innovation and creative class enterprises already located in the DIZ. A handful are growing rapidly, and more new tenancy is planned.

The core incubation district of the DIZ includes four business incubators which are open, planned or under construction, situated around the Main & Clinton intersection. The incubators represent new centers of gravity for business creation and location in the heart of the region, and include:

▪ RIT’s Center for Urban Entrepreneurship at 40 Franklin Street (open since the fall of 2015) ▪ University of Rochester and HTR’s Business Accelerator Cooperative in Sibley Square (under construction with anticipated formal opening in February 2018, although 12 startups moved down into temporary space 15 months early) ▪ HTR’s Luminate in Sibley Square, focused on optics, photonics and imaging startups (launched in November 2017) ▪ RDDC’s The Commissary, a downtown kitchen incubator in The Metropolitan (in fundraising phase with anticipated opening in 2018)

Future opportunities to fill vacant downtown space with new start-up enterprises over the next two to five years is very real.

Housing. RDDC is tracking $853 million in downtown’s development pipeline in November 2017. This includes 22 housing projects representing 1,700 new units. At current residential occupancy rates, this will add another 3,000 new residents to the 7,000 people already calling downtown home. Vacancy rates continue to be well below 5% – the norm in a healthy housing market.

Dining. The 2017 year also saw the announcements and openings of a handful of high profile restaurants and outdoor food activity. This includes Morton’s Steakhouse at the rebuilt Hyatt Hotel; Bar Bantam at The Metropolitan; and, at Three City Center across from Geva Theatre Center, a yet-to-be-named restaurant by the owner of Label 7. A group of investors supported the restaurant and food truck festival “Midtown Eats” this year, that drew thousands of patrons on the first Thursdays throughout the spring and summer. More announcements are expected in early 2018.

Visitors. Christa Development and Morgan Management have jointly invested in significantly upgrading two downtown hotels — the Hyatt, and the recently announced Rochester Riverside Hotel (former Radisson). Doubling the capacity of the highly acclaimed JAF Rochester Riverside Convention Center is now a high priority for city redevelopment. The Strong is also planning a new wing as part of a massive museum expansion/hotel/parking/housing development at the Inner Loop East. All of this will draw net new money and visitors to Rochester’s center city.

(Executive Summary, May 2017, page six)

INVENTORY CHANGES UNDERWAY

Four projects have been in process that will impact downtown’s office inventory:

▪ Gateway & Atrium Buildings (CGI Communications) – Development of these two long-time empty buildings on Main Street in the former Renaissance Square footprint will be converted to modern office space and a parking garage, with the current corporate location – the Granite Building – converted to residential use. ▪ Midtown Block, Parcel 2 (Buckingham Properties & Morgan Management) – Two floors of office space in plans for newly constructed building at South Clinton Avenue and Broad Street. ▪ Alex Park (Buckingham Properties) – An additional 150,000 square feet of office space is planned for this new, multiple building project on the site of the former Genesee Hospital. ▪ Kirstein Building (PGH Kirstein LLC) – The first de-conversion to office space (two floors for fast-growing neighbor D4) from original housing conversion project at Bittner and Andrews.

The following properties are planned or under development for conversion to residential use and will lose office space:

o Sibley Place (585,400 g.s.f.) o The Metropolitan (212,000) o Alliance Building (135,000) o Columbus Building (88,000) o 88 Elm Street (81,800) o Cox Building (70,273) o Terminal Building (58,000) o Hive @ 155 (155 St. Paul St.) (55,335) o Woodbury Place (former Merkel Donohue Building) (54,340) o Hiram Sibley Building (27,092) o North Plymouth Terrace (East Main Street building) (18,000) o Centers at High Falls (approx. 10,000)

ADDITIONAL INFORMATION ABOUT THE 2017 SURVEY

Inventory changes in the Survey of Downtown Office Space, May 2017 report reflect a combination of new construction, demolition, conversion, and addition of more space in existing buildings to the tracked inventory for the 2008-17 time period. Note that only new construction and activity that returns dormant space to the office category actually create “real” net new office space.

❖ ❖ ❖ ❖ ❖ DOWNTOWN OFFICE SPACE SUMMARY May 2017

Percent Change in of All Percent of Total S.F., Vacant S.F., Percent Vacancy, Number Downtown Competitive Class 2017 2017 Vacant 2016-17 of Bldgs. Space Space Only

"A" 3,030,263 685,158 22.6% -1.5% 12 30% 44%

"A/R" 571,502 106,420 18.6% -1.3% 12 6% 8%

"B" * 2,575,982 831,071 32.3% +7.6% 33 26% 37%

"Non-Traditional (N/T)" 575,065 106,042 18.4% +6.0% 25 6% 8%

"Medical (M)" 150,292 5,576 3.7% +3.7% 4 2% 2%

SUBTOTAL,COMPETITIVE 6,903,104 1,734,267 25.1% +2.6% 86 69% 100%

"Non-Competitive (N/C)" 3,112,597 0 0% n.a. 29 31%

TOTAL, ALL SPACE 10,015,701 1,734,267 17.3% +1.8% 115 100%

* (The Executive Building with 151,700 s.f. has an unresponsive, out-of-town owner, and is therefore not included in the 2017 survey.)

RDDC - 5/17 www.rochesterdowntown.com Downtown Office Space Survey INVENTORY, 2008-17 (In Square Feet)

May May May May May May May May May May 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008

Class A 3,030,263 2,924,053 2,878,021 3,115,733 2,215,733 2,215,733 2,135,733 2,135,733 2,143,733 2,263,744

Class A/R 571,502 571,502 572,052 572,052 588,752 616,558 611,184 568,922 568,922 568,922

Class B * 2,575,982 2,629,352 2,416,605 2,558,340 2,635,132 2,785,522 3,035,221 3,058,091 2,894,274 2,946,130

Non-Traditional (N/T) 575,065 572,568 584,068 661,547 639,647 772,531 766,531 772,657 830,961 1,123,891

Medical (M) 150,292 150,292 138,292 138,292 138,292 138,292 138,292 118,292 n.a. n.a.

TOTAL, COMPETITIVE 6,903,104 6,847,767 6,589,038 7,045,964 6,217,556 6,528,636 6,686,961 6,653,695 6,437,890 6,902,687

Non-Competitive (N/C) 3,112,597 3,104,668 3,320,915 3,251,515 4,051,515 4,676,589 4,676,589 4,646,169 4,906,069 4,472,969

TOTAL, ALL SPACE 10,015,701 9,952,435 9,909,953 10,297,479 10,269,071 11,205,225 11,363,550 11,299,864 11,343,959 11,375,656

* (The Executive Building with 151,700 s.f. has an unresponsive, out-of-town owner, and is therefore not included in the 2017 survey.)

(NOTES: Tower280 came on the market in the Class A category, and Jonathan Child House added back into N/T, in 2017; Xerox Tower went from Non-Competitive to Class A space category in 2014; Kodak's Building 10 moved from Non-Competitive to Class B category, and 250south & CJS Architectural Studio moved from Non-Traditional to Non- Competitive Class in 2016; 454 East Broad Street was moved to the Medical Class in 2016; the Jonathan Child House and North Plymouth Terrace were removed from the inventory in 2016; the Medical Space category was added in 2010.)

RDDC - 5/17 www.rochesterdowntown.com Downtown Office Space Survey GROWTH, 2008-17 (In Square Feet)

May May May May May May May May May May 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 TOTAL S.F. Competitive Only 6,903,104 6,847,767 6,589,038 7,045,964 6,217,556 6,528,636 6,686,961 6,653,695 6,437,890 6,902,687 All Space 10,015,701 9,952,435 9,909,953 10,297,479 10,269,071 11,205,225 11,363,550 11,299,864 11,343,959 11,375,656

GROWTH OVER PREV. YR. "A" 106,210 46,032 (237,712) 900,000 0 80,000 0 (8,000) (120,011) 0 "A/R" 0 (550) 0 (16,700) (27,806) 5,374 42,262 0 0 16,100 "B" * (53,370) 212,747 (141,735) (76,792) (150,390) (249,699) (22,870) 163,817 (51,856) (513,269) "Non-Traditional" 2,497 (11,500) (77,479) 21,900 (132,884) 6,000 (6,126) (58,304) (292,930) (23,301) "Medical" 0 12,000 0 0 0 0 20,000 n.a. n.a. n.a.

TOTAL GROWTH, COMP. ONLY S.F. 55,337 258,729 (456,926) 828,408 (311,080) (158,325) 33,266 97,513 (464,797) (520,470) Percent 0.8% 3.9% -6.5% 13.3% -4.8% -2.4% 0.5% 1.5% -6.7% -7.0%

GROWTH OVER PREV. YR. "Non-Competitive" 7,929 (216,247) 69,400 (800,000) (625,074) 0 30,420 (259,900) 433,100 10,000

TOTAL GROWTH, ALL SPACE S.F. 63,266 42,482 (387,526) 28,408 (936,154) (158,325) 63,686 (162,387) (31,697) (510,470) Percent 0.6% 0.4% -3.8% 0.3% -8.4% -1.4% 0.6% -1.4% -0.3% -4.3%

* (The Executive Building with 151,700 s.f. has an unresponsive, out-of-town owner, and is therefore not included in the 2017 survey.)

RDDC - 5/17 www.rochesterdowntown.com Downtown Office Space Survey VACANCY AND OCCUPANCY, 2008-17 (In Square Feet, Competitive Space Only)

May May May May May May May May May May 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 CLASS "A" Vacant S.F. 685,158 703,897 697,957 604,242 482,574 489,895 316,155 256,909 262,517 294,989 % Vacant 22.6% 24.1% 24.3% 19.4% 21.8% 22.1% 14.8% 12.0% 12.2% 13.0% Occupied S.F. 2,345,105 2,220,156 2,180,064 2,511,491 1,733,159 1,725,838 1,819,578 1,878,824 1,881,216 1,968,755 % Occupied 77.4% 75.9% 75.7% 80.6% 78.2% 77.9% 85.2% 88.0% 87.8% 87.0% CLASS "A/R" Vacant S.F. 106,420 113,975 85,487 85,930 116,566 158,589 129,440 122,770 108,646 88,962 % Vacant 18.6% 19.9% 14.9% 15.0% 19.8% 25.7% 21.2% 21.6% 19.1% 15.6% Occupied S.F. 465,082 457,527 486,565 486,122 472,186 457,969 481,744 446,152 460,276 479,960 % Occupied 81.4% 80.1% 85.1% 85.0% 80.2% 74.3% 78.8% 78.4% 80.9% 84.4% CLASS "B" * Vacant S.F. 831,071 650,698 412,156 571,993 512,747 564,728 689,334 669,065 647,975 719,951 % Vacant 32.3% 24.7% 17.1% 22.4% 19.5% 20.3% 22.7% 21.9% 22.4% 24.4% Occupied S.F. 1,744,911 1,978,654 2,004,449 1,986,347 2,122,385 2,220,794 2,345,887 2,389,026 2,246,299 2,226,179 % Occupied 67.7% 75.3% 82.9% 77.6% 80.5% 79.7% 77.3% 78.1% 77.6% 75.6% CLASS "Non-Traditional" Vacant S.F. 106,042 71,238 133,153 208,192 157,818 217,227 221,297 226,433 258,099 372,091 % Vacant 18.4% 12.4% 22.8% 31.5% 24.7% 28.1% 28.9% 29.3% 31.1% 33.1% Occupied S.F. 469,023 501,330 450,915 453,355 481,829 555,304 545,234 546,224 572,862 751,800 % Occupied 81.6% 87.6% 77.2% 68.5% 75.3% 71.9% 71.1% 70.7% 68.9% 66.9% CLASS "Medical" Vacant S.F. 5,576 0 0 0 0 780 9,680 0 n.a n.a % Vacant 3.7% 0.0% 0.0% 0.0% 0.0% 0.6% 7.0% 0.0% n.a n.a Occupied S.F. 144,716 150,292 138,292 138,292 138,292 137,512 128,612 118,292 n.a n.a % Occupied 96.3% 100.0% 100.0% 100.0% 100.0% 99.4% 93.0% 100.0% n.a n.a TOTAL Vacant S.F. 1,734,267 1,539,808 1,328,753 1,470,357 1,269,705 1,431,219 1,365,906 1,275,177 1,277,237 1,475,993 % Vacant 25.1% 22.5% 20.2% 20.9% 20.4% 21.9% 20.4% 19.2% 19.8% 21.4% Occupied S.F. 5,168,837 5,307,959 5,260,285 5,575,607 4,947,851 5,097,417 5,321,055 5,378,518 5,160,653 5,426,694 % Occupied 74.9% 77.5% 79.8% 79.1% 79.6% 78.1% 79.6% 80.8% 80.2% 78.6%

* (The Executive Building with 151,700 s.f. has an unresponsive, out-of-town owner, and is therefore not included in the 2017 survey.)

RDDC - 5/17 www.rochesterdowntown.com Downtown Office Space Survey OCCUPIED SPACE, 2008-17 (In Square Feet)

May May May May May May May May May May CLASS 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008

"A" 2,345,105 2,220,156 2,180,064 2,511,491 1,733,159 1,725,838 1,819,578 1,878,824 1,881,216 1,968,755

"A/R" 465,082 457,527 486,565 486,122 472,186 457,969 481,744 446,152 460,276 479,960

"B" * 1,744,911 1,978,654 2,004,449 1,986,347 2,122,385 2,220,794 2,345,887 2,389,026 2,246,299 2,226,179

"Non-Traditional" 469,023 501,330 450,915 453,355 481,829 555,304 545,234 546,224 572,862 751,800

"Medical" 144,716 150,292 138,292 138,292 138,292 137,512 128,612 118,292 n.a n.a

TOTAL OCCUPIED, Competitive Space Only 5,168,837 5,307,959 5,260,285 5,575,607 4,947,851 5,097,417 5,321,055 5,378,518 5,160,653 5,426,694

"Non-Competitive" 3,112,597 3,104,668 3,320,915 3,251,515 4,051,515 4,676,589 4,676,589 4,646,169 4,906,069 4,472,969

TOTAL OCCUPIED, All Space 8,281,434 8,412,627 8,581,200 8,827,122 8,999,366 9,774,006 9,997,644 10,024,687 10,066,722 9,899,663

* (The Executive Building with 151,700 s.f. has an unresponsive, out-of-town owner, and is therefore not included in the 2017 survey.)

RDDC - 5/17 www.rochesterdowntown.com Downtown Office Space Survey ABSORPTION, 2008-17 (In Square Feet)

ABSORPTION OVER May May May May May May May May May May PREVIOUS YEAR 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008

"A" 124,949 40,092 (331,427) 778,332 7,321 (93,740) (59,246) (2,392) (87,539) (3,508) "A/R" 7,555 (29,038) 443 13,936 14,217 (23,775) 35,592 (14,124) (19,684) (3,828) "B" * (233,743) (25,795) 18,102 (136,038) (98,409) (125,093) (43,139) 142,727 20,120 126,570 "Non-Traditional" (32,307) 50,415 (2,440) (28,474) (73,475) 10,070 (990) (26,638) (178,938) 83,361 "Medical" (5,576) 12,000 0 0 780 8,900 10,320 n.a. n.a. n.a.

SUBTOTAL, Competitive Space Only (139,122) 47,674 (315,322) 627,756 (149,566) (223,638) (57,463) 217,865 (266,041) 202,595

"Non-Competitive" 7,929 (216,247) 69,400 (800,000) (625,074) 0 30,420 (259,900) 433,100 10,000

TOTAL, All Space (131,193) (168,573) (245,922) (172,244) (774,640) (223,638) (27,043) (42,035) 167,059 212,595

* (The Executive Building with 151,700 s.f. has an unresponsive, out-of-town owner, and is therefore not included in the 2017 survey.)

RDDC - 5/17 www.rochesterdowntown.com Downtown Office Space Survey VACANCY BY DOWNTOWN NEIGHBORHOOD, May 2017 (In Square Feet)

NEIGHBORHOOD COMPETITIVE SPACE ALL SPACE Square Percent Change Since Square Percent Change Since Feet Vacant May 2016 Feet Vacant May 2016

Alex Park 532,972 6.1% +4.6% 532,972 6.1% +4.6%

Cascade District 349,507 19.3% +2.5% 470,827 14.3% +1.9%

East End/Upper East End 576,731 23.2% +18.2% 710,531 18.9% +14.9%

Four Corners * 1,629,462 19.1% +1.8% 2,886,267 10.8% +0.6%

High Falls 573,967 40.5% -8.2% 1,376,781 16.9% -2.1%

Midtown District 981,039 49.3% +12.6% 1,089,039 44.4% +11.8%

Manhattan Square 363,400 29.4% -6.6% 533,400 20.1% -4.4%

St. Joseph's Park 74,500 5.4% -12.5% 74,500 5.4% -5.9%

St. Paul Quarter 155,632 15.2% -1.4% 383,090 6.2% +0.4%

Washington Square 1,657,729 20.2% -4.0% 1,950,229 17.2% -3.4%

* (The Executive Building with 151,700 s.f. has an unresponsive, out-of-town owner and is not included in the 2017 survey.)

(NOTE: There are two buildings located outside these ten neighborhoods, totaling 8,065 s.f. of space, 6,665 of which is competitive space.)

RDDC - 5/17 www.rochesterdowntown.com 2017 SURVEY OF DOWNTOWN OFFICE SPACE

Buildings By Class

Class “A” (Class “B”, cont’d) Class “Non-Competitive” Clinton Square One East Avenue 49 Stone St. Corporate Place One Forty Main West 135 University Avenue First Federal Plaza Radisson Hotel Rochester Riverside 222 Andrews St. Five Star Bank Plaza Reynolds Arcade 250 South Legacy Tower Richard E. Wilson Building Advantage Federal Credit Union The Metropolitan Sibley Square Aqueduct Buildings Offices at Alexander Park Talman Excellus Blue Cross/Blue Shield Professional Building Times Square CJS Architects Studio Riedman Tower Triangle Carestream Health Seneca Union Trust Century Row Three City Center University Place City Hall Tower280 Valley City Public Safety Xerox Tower Wegman City School District Wilder County Office Ebenezer Watts Class “A/R” ESL Federal Credit Union 61 Commercial St. (Trolley Barn) Class “Non-Traditional” Federal Building 194 Mill St. 6 Atlas St. Gannett 298 State St. 17 Pitkin Street Granite 300 State St. (Button Factory) 40 Franklin St. (RIT Center for Hall of Justice Harro East Urban Entrepreneurship) Howard Hanna Building Irving Place 41 Chestnut St. Ironworks Knowlton 44 Exchange Kodak Office Parry 70 Cascade Dr. Monroe Partners 208 Mill St. Public Safety Powers 234 Mill St. RG&E Temple Bridge Square Sagamore on East Washington Buckingham Commons Sibley Building, HTR Business Cascade Centre Accelerator Cooperative portion Cascade Commons The College at Brockport Class “B” Centers at High Falls 12 Aqueduct St. Columbus 37 S. Washington St. Fitch 150 State St. High Falls Building 100 Liberty Pole Way High Falls Business Center Alexander Park/220 Alexander St. Hive @ 116 RENT RANGES Alexander Park/360 Monroe Ave. Hive @ 155 Appellate Court Hive Andrews “A” $14.00 – 22.75 Building 10, Kodak Office Jonathan Child House “A/R” $4.75 – 17.00 Chapin Michaels/Stern “B” $7.00 – 18.00 Chestnut Grove Rochester Club Centre “Non-Trad.” $8.00 – 15.00 City Place Seventeen Main St. East “Medical” N/A Court-Exchange Water Street Commons Crossroads Ellwanger & Barry Liberty Plaza Class “Medical” Michael A. Telesca Center for 454 East Broad Street Justice Alexander Park/222 Alexander St. Miller Center Alexander Park/224 Alexander St. Monroe Square Medical Offices at Alexander Park Novamac Professional Center INDIVIDUAL BUILDING INFORMATION Competitive Office Space MAY 2017

BUILDING NAME/ADDRESS NET AVG. NUMBER OF FLOORS/ LEASABLE FLOOR VACANT ASKING INCLUSIONS/ YEAR BUILT/ S.F. SIZE S.F. RENT ESCALATORS PARKING CONTACT RENOVATED

1. 6 Atlas Street Building 3,000 1,500 1,500 $10.00 Negotiable. East End Garage and Mike Donatelli 6 Atlas Street nearby surface lots. Center City Properties (2+b, blt: 1940) LLC 281-2999

2. 12 Aqueduct Street Building 10,400 2,500 0 $12.00 Gross lease; includes two Secured parking lot with Tim Seibold 12 Aqueduct Street parking spaces per floor. 39 spaces. Farkel Realty LLC (3, blt:1930) 546-4990

3. 17 Pitkin Street 17,000 20,000 0 $14.00 Modified gross. Parking lot on site; loft- Glenn Kellogg 17 Pitkin Street style space over Hart's Winthrop & Pitkin LLC (2, blt: 1930, ren: 2014) Local Grocers. 653-8004

4. 37 S. Washington St. Building 9,090 3,767 2,590 Negotiable Taxes, insurance,CAM, 8 spaces included, Adam Borrell 37 S. Washington Street electric, heat, A/C. adjacent surface lot. Buckingham Properties (3, blt: 1952, ren: 1999) 287-5861

5. 40 Franklin Street Building 35,336 Varies 8,015 $14.00 Negotiable. Adjacent surface lot - 110 Marjorie Bricks 40 Franklin Street spaces Rochester Institute of (5, blt: 1927)) Technology 475-2269

RDDC Survey of Downtown Office Space - May 2017 Competitive Building Listing, Page 1 INDIVIDUAL BUILDING INFORMATION Competitive Office Space MAY 2017

BUILDING NAME/ADDRESS NET AVG. NUMBER OF FLOORS/ LEASABLE FLOOR VACANT ASKING INCLUSIONS/ YEAR BUILT/ S.F. SIZE S.F. RENT ESCALATORS PARKING CONTACT RENOVATED

6. 41 Chestnut Street Building 15,000 3,750 7,000 $12.00 Negotiable. East End Garage, nearby Mike Donatelli 41 Chestnut Street surface lots. Center City Properties (4, blt: 1930, ren: 1978) LLC 281-2999

7. 44 Exchange Street Building 20,000 9,000 4,500 $12.00 Negotiable. Adjacent 80-space Mort Segelin 44 Exchange Street surface lot, spaces are Riverview Rochester, (5+b, blt: 1964, ren: 1984) negotiable. Also parking LLC in nearby lot and Civic 454-6229 Center Garage.

8. 61 Commercial Street 42,262 21,131 0 N/A N/A Across the street in the Lewis Norry 61 Commercial Street High Falls Garage, spaces Norry Management (2, blt: 1888-90, ren: 2010) available on a monthly Corporation and daily basis. 271-4800

9. 70 Cascade Drive Building 4,700 2,350 0 $8.00 - 10.00 N/A Has own driveway with Andy Olenick 70 Cascade Drive additional surface lot and Fotowerks, Ltd. (2, blt: 1910) on-street parking. 454-4743

10. 100 Liberty Pole 100 12,000 2,000 - 4,000 Negotiable N/A Adjacent parking lot. Mark Updegraff Liberty Pole Way (3; 4,000 Updegraff Management blt: 1920, ren: 1980 & 2016) 314-9790

11. 150 State Street Building 76,000 19,000 4,128 Negotiable Includes CAM, taxes, heat 225 space covered lot on- Courtney Janto 150 State Street pump, parking. site, Crossroads Garage. Buckingham Properties (4, blt: 1968) 295-9500

RDDC Survey of Downtown Office Space - May 2017 Competitive Building Listing, Page 2 INDIVIDUAL BUILDING INFORMATION Competitive Office Space MAY 2017

BUILDING NAME/ADDRESS NET AVG. NUMBER OF FLOORS/ LEASABLE FLOOR VACANT ASKING INCLUSIONS/ YEAR BUILT/ S.F. SIZE S.F. RENT ESCALATORS PARKING CONTACT RENOVATED

12. 194 Mill Street Building 6,800 N/A 0 N/A N/A Six spaces included on Lewis Norry 194 Mill Street surface lot. High Falls Norry Management Co. (2, blt: 1920, ren: on-going) garage nearby. 4100 sq. 271-4800 feet could be shared or subdivided.

13. 208 Mill Street 21,250 5,000 0 $10.00 - 12.00 Janitorial, CAM & utilities. Adjacent parking lots and Bob Lindsay 208 Mill Street Lower RE taxes for 10+ High Falls Garage. Plain Sight Collateral (4, blt: 1834, ren: 2009) years. LLC 370-7552

14. 234 Mill Street 1,000 1,000 0 $1,195 per N/A One dedicated space in Elizabeth Butler 234 Mill Street month adjacent surface lot, plus Mitchell Pierson Jr., Inc. (3, blt: 1880, ren: 1990) one guest space shared 739-7615 with owner.

15. 298 State Street Building 21,000 3,136 0 $9.00 - 16.50 CAM, gas, water. Pro-rata Building owner controls John August 298 State Street share of increase above base 127 adjacent surface LLD Enterprises (4+b, blt: 1910, ren: on-going) year. parking spaces in addition 305-1909 to those available in the High Falls garage.

16. 300 State Street Building 81,265 12,500 8,000 $12.00 - 17.00 CAM, gas, water. Pro-rata Building owner controls John August 300 State Street share of increase above base 127 adjacent surface LLD Enterprises (7+b, blt: 1893, ren: 2002) year. By October 2016, only parking spaces in addition 305-1909 5,000 remaining for lease. to those available in the High Falls garage.

RDDC Survey of Downtown Office Space - May 2017 Competitive Building Listing, Page 3 INDIVIDUAL BUILDING INFORMATION Competitive Office Space MAY 2017

BUILDING NAME/ADDRESS NET AVG. NUMBER OF FLOORS/ LEASABLE FLOOR VACANT ASKING INCLUSIONS/ YEAR BUILT/ S.F. SIZE S.F. RENT ESCALATORS PARKING CONTACT RENOVATED

17. 454 East Broad Street 12,000 12,000 0 N/A N/A Onsite parking, adjacent Mike Boynton 454 E. Broad Street parking lots. Benderson Develop. Co. (1, blt: 1965) (716) 886-0211

18. Alex Park/220 124,614 17,800 16,000 $10.00 N/A Adjacent parking garage Courtney Janto Alexander and lot. Buckingham Properties 220 Alexander Street 295-9500 (7, blt: 1974) 19. Alex Park/222 64,292 12,850 4,500 $8.00 Health care & medical office Adjacent parking garage Courtney Janto Alexander building. and lot. Buckingham Properties 222 Alexander Street 295-9500 (5, blt: 1993) 20. Alex Park/224 54,000 54,000 0 N/A Health care & medical office Adjacent parking garage Courtney Janto Alexander building. and lot. Buckingham Properties 224 Alexander Street 295-9500 (1, blt: 1999)

21. Alex Park/360 Monroe Ave. 7,234 7,234 7,234 $14.00 Triple net. Dedicated parking in Courtney Janto 360 Monroe Avenue adjacent parking garage Buckingham Properties (1, blt: 1994) and lot. 295-9500

22. Appellate Court Building 77,650 N/A 0 N/A This complex is fully Underground parking, David Riedman 50 East Avenue occupied by the NY East End Garage, area Riedman Development (2 bldgs., blt: 1998) Appellate Division of the surface lots. Corp. NYS Supreme Court under a 232-2600 long-term lease with Monroe County.

RDDC Survey of Downtown Office Space - May 2017 Competitive Building Listing, Page 4 INDIVIDUAL BUILDING INFORMATION Competitive Office Space MAY 2017

BUILDING NAME/ADDRESS NET AVG. NUMBER OF FLOORS/ LEASABLE FLOOR VACANT ASKING INCLUSIONS/ YEAR BUILT/ S.F. SIZE S.F. RENT ESCALATORS PARKING CONTACT RENOVATED

23. Bridge Square 26,000 650 0 $15.00 Triple net. 70-80 fenced and secure Lindsay Spoleta 242 West Main Street parking spaces and an Transform Commercial (4; blt: 1900, ren: 2013 ) additional 24 private Brokerage spaces underground 943-2759

24. Buckingham Commons 35,069 5,010 2,586 N/A N/A Adjacent side lot, nearby Diana Williams 85 Allen Street surface lots. Buckingham Properties (7, blt: 1896, ren: 2006) 295-9500

25. Building 10, Kodak Office 280,000 28,343 220,000 $8.00 Triple net; increases of 2% 1,223 parking spaces in Arline Liberti 343 State Street annually. adjacent lots plus High Eastman Kodak Company (9, blt: 1915) Falls Garage 722-2513

26. Cascade Center 93,000 6000 - 4,400 $8.00 - 13.95 A/C, parking, very unique Free in adjacent lot, if Jim Loftus 72 Cascade Dr./25 N. 13500 space. Includes CAM, available. At grade Cascade Associates, LLC Washington St. janitorial. Utilities extra. access 766-5619 (5, N/A) Tax escalator.

27. Cascade Commons 32,400 N/A 7,988 Negotiable CAM, parking, taxes, Adjacent lots and on- Diana Williams 11 Centre Park insurance. street parking. Buckingham Properties (3, blt: 1904, ren: early 1970's) 295-9500

28. Centers at High Falls 8,750 N/A 0 $12.00 CAM Adjacent lots and High Bob Lindsay 60 Browns Race Falls Garage. Plain Sight Collateral (3; blt: 1920, ren: 1990's & LLC 2015) 370-7552

RDDC Survey of Downtown Office Space - May 2017 Competitive Building Listing, Page 5 INDIVIDUAL BUILDING INFORMATION Competitive Office Space MAY 2017

BUILDING NAME/ADDRESS NET AVG. NUMBER OF FLOORS/ LEASABLE FLOOR VACANT ASKING INCLUSIONS/ YEAR BUILT/ S.F. SIZE S.F. RENT ESCALATORS PARKING CONTACT RENOVATED

29. Century Row 7,929 3,964 0 $8.00 CAM & janitorial included. Crossroads & Sister Emmelyn Logan-Baldwin 171 State St. Escalators on taxes & CPI. Cities Garages, nearby 232-2292 (3, blt: 1870) lots.

30. Chapin Building 40,200 12,000 0 $12.00 Taxes, insurance included. Private lot. Theresa Vigioni 205 St. Paul Street gross, Escalators on taxes, FJR Associates (5, blt: 1890, ren: 1989) 10,000 insurance & building 232-4408 leasable operating expense. Pro-rata share of gas & electric.

31. Chestnut Grove 14,840 18,265 0 N/A N/A Two adjacent parking Tom Latta 150 Chestnut Street lots. Buckingham Properties (1, blt: 1950, ren: 1998) 295-9500

32. City Place 273,000 34,125 0 N/A The County of Monroe is the 200 space adjacent lot, Michael Spoleta 50 West Main Street sole tenant, and is on a long- Sister Cities Garage, area City Center, LLC (8, blt: 1904: ren: 1998) term lease. surface lots. 436-2701

33. Clinton Square 305,371 24,100 46,410 $22.00 CAM, janitorial, taxes, 400-space underground Kenneth Nau 75 South Clinton Avenue (14, security, utililities. Annual garage, and South Broadstone Real Estate, blt: 1990) adjustment in pro-rata Avenue Garage. LLC operating expenses and 287-6483 taxes.

34. Columbus Building 22,000 10,300 15000 $10.00 Triple net. Surface lot next to Pete Gillett 50 Chestnut Street building. East End DHD Ventures,LLC (12+b, blt: 1929, ren: 2016-17) Garage. 629-0644

RDDC Survey of Downtown Office Space - May 2017 Competitive Building Listing, Page 6 INDIVIDUAL BUILDING INFORMATION Competitive Office Space MAY 2017

BUILDING NAME/ADDRESS NET AVG. NUMBER OF FLOORS/ LEASABLE FLOOR VACANT ASKING INCLUSIONS/ YEAR BUILT/ S.F. SIZE S.F. RENT ESCALATORS PARKING CONTACT RENOVATED

35. Corporate Place 152,000 42,000 75,000 $14.78 Includes CAM, insurance, 700-car attached private Dan Saperstone 255 East Avenue heat, A/C, security, parking ramp garage. The Cabot Group (4, blt: 1987) in ramp garage. Tenant pays 381-1500 electric & janitorial. Escalators on taxes and maintenance over base year. Cafeteria in building.

36. Court-Exchange Building 43,000 7,000 4,200 $13.00 - 18.00 Janitorial, taxes, CAM, 100-space adjacent Sheila Fustanio 144 Exchange Street electric, heat, A/C. surface lot charged at McCarthy Richardsen (6+b, blt: 1882, ren: 1984) Escalators on taxes and cost. Civic Center Properties maintenance. 24-hour Garage. 662-6066 access.

37. Crossroads Building 177,700 12,700 33,000 $12.50 Plus $1.50 electric, $1.00 Crossroads and sister Daniel O'Neill 2 State Street janitorial. Four high-speed Cities Garages. Pyramid Brokerage Co. (15+b, blt:1969) elevators, A/C, guard 248-9426 service. Brand new lobby. Food service.

38. Ellwanger & Barry Building 89,700 10,000 55,075 Negotiable Insurance, taxes, utilities, Sister Cities Garage. Rich Finley 39 State Street CAM. Parking also at 150 State Buckingham Properties (8+b, blt: 1888, ren: 1985) St, and on other nearby 295-9500 surface lots.

RDDC Survey of Downtown Office Space - May 2017 Competitive Building Listing, Page 7 INDIVIDUAL BUILDING INFORMATION Competitive Office Space MAY 2017

BUILDING NAME/ADDRESS NET AVG. NUMBER OF FLOORS/ LEASABLE FLOOR VACANT ASKING INCLUSIONS/ YEAR BUILT/ S.F. SIZE S.F. RENT ESCALATORS PARKING CONTACT RENOVATED

39. Executive Building 151,700 20,000 N/A $12.00 OUT-OF-TOWN OWNER Sister Cities Garage Norman Jemal 36 W. Main Street IS UNRESPONSIVE. (attached), Civic Center Douglas Development (9+b, blt: 1890, ren: on-going) Security, electric, heat, A/C, Garage. Corporation janitorial. (202) 638-6300

40. First Federal Plaza 268,000 11,500 52,000 $18.50 Gross Includes base year operating Private underground Chris Hill 28 E. Main Street expenses & taxes. CAM, garage, Crossroads I. Gordon Corporation (21, blt: 1977) janitorial, electric, A/C, heat, Garage. 546-8111 x101 security, taxes. Escalators on taxes and operating expenses.

41. Fitch Building 12,000 6,003 6,038 $10.00 Triple net. 80 parking spaces in two Pete Gillett 364 East Avenue surface lots, one on-site, DHD Ventures, LLC (3,r en: on-going) and the second in close 629-0644 proximity.

42. Five Star Bank Plaza 351,400 16,800 107,000 Negotiable Gross lease with escalators Underground parking Michael Boynton 100 Chestnut Street on base year. garage. Surface lot Benderson Development (21, blt: 1971, ren: 1984-99) parking for employees. Co. East End Garage, and (716) 886-0211 nearby surface lots.

RDDC Survey of Downtown Office Space - May 2017 Competitive Building Listing, Page 8 INDIVIDUAL BUILDING INFORMATION Competitive Office Space MAY 2017

BUILDING NAME/ADDRESS NET AVG. NUMBER OF FLOORS/ LEASABLE FLOOR VACANT ASKING INCLUSIONS/ YEAR BUILT/ S.F. SIZE S.F. RENT ESCALATORS PARKING CONTACT RENOVATED

43. Harro East Building 62,500 10,000 0 $16.00 CAM, heat, security, athletic Included, 4 adjacent Scott Burdett 400 Andrews Street club membership, dining surface lots. Flaum Management Co., (7, blt: 1932, ren: 1984) facility, exhibit & theater Inc. space, conference & meeting 546-4866 rooms. Escalators on expenses & base rent.

44. High Falls Building 43,440 5000 - 2,800 $10.00 - 12.00 Triple net. 100 spaces on-site as well Ben Kendig 4 Commercial Street 7,000 as parking in High Falls Kend Enterprises (7, N/A) Garage and 262-3113 x21 nearby surface lots.

45. High Falls Business Center 15,000 3,000 1,462 $500 and up, Fully gross. Executive One parking space Amanda Adams (Formerly Upper Falls Building) per suite. suites/office arrangement. included per unit. Webster Properties 250 Mill Street Larger spaces Includes taxes, furniture, Adjacent and nearby 465-5027 (5+b, blt: 1840, ren: 1985-1990) are priced per utilities, CAM, janitorial, parking lots. deal. insurance, and on-site office support services. Four offices available.

46. Hive @ 116 116 1,000 3,959 0 N/A N/A Nearby surface lots. Diana Williams St. Paul Street (3, Buckingham Properties blt: 1920, ren: 2006) 295-9500

47. Hive Andrews 3,000 3,959 0 N/A N/A Nearby surface lots. Diana Williams 214 Andrews Street Buckingham Properties (5, blt: 1920, ren: 1990's) 295-9500

RDDC Survey of Downtown Office Space - May 2017 Competitive Building Listing, Page 9 INDIVIDUAL BUILDING INFORMATION Competitive Office Space MAY 2017

BUILDING NAME/ADDRESS NET AVG. NUMBER OF FLOORS/ LEASABLE FLOOR VACANT ASKING INCLUSIONS/ YEAR BUILT/ S.F. SIZE S.F. RENT ESCALATORS PARKING CONTACT RENOVATED

48. Irving Place 50,374 10,000 16,926 $10.00 Modified gross. Escalators Civic Center Garage, Susie Woods 30 W. Broad Street on taxes and operating nearby surface lots. Mark IV Enterprises (5+LL, blt: 1856, ren: 1987) expenses based on base year. 754-0124

49. Jonathan Child House 8,200 N/A 8,200 $10.00 Modified gross. Adjacent parking lot. Adam Borrell 35 S. Washington Street Buckingham Properties (3, blt: 1842, ren: 1990) 287-5861

50. Knowlton Building 48,000 20,000 15,000 $13.95 CAM, janitorial. Tenants Free in adjacent lots Jim Loftus 69 Cascade Drive pay utilities. Very unique behind and near building. Knowlton Associates, (5+b, ren: 2000) renovated space. LLC 766-5619

51. Legacy Tower 343,700 20,400 140,426 $22.75, Fully gross. Increases above Court Street Garage. Adam Borrell One Bausch & Lomb Place (Flrs. 4-18); base year for operating Buckingham Properties (20, blt: 1995) $25.75, expenses & taxes. 287-5861 (Flrs. 19 & 20) Wintergarden, cafeteria, private dining rooms, fitness center.

52. Liberty Plaza 31,000 7,000 7,500 $10.00 - 11.00 N/A Crossroads Garage, area Mort Segelin 31 E. Main Street surface lots. Philippone Associates (5, blt: 1800, ren: 2000) 454-6229

53. Medical Offices at Alex Park 20,000 20,000 1,076 N/A Triple net, parking included. Adjacent Parking Courtney Janto Professional Center Buckingham Properties 214 Alexander Street 295-9500 (1, blt: 2009)

RDDC Survey of Downtown Office Space - May 2017 Competitive Building Listing, Page 10 INDIVIDUAL BUILDING INFORMATION Competitive Office Space MAY 2017

BUILDING NAME/ADDRESS NET AVG. NUMBER OF FLOORS/ LEASABLE FLOOR VACANT ASKING INCLUSIONS/ YEAR BUILT/ S.F. SIZE S.F. RENT ESCALATORS PARKING CONTACT RENOVATED

54. The Metropolitan 218,096 13,700 48,578 $16.00 Taxes & operating expense. South Avenue Garage. Kurt Sertl 1 South Clinton Avenue Escalators annually on taxes, Gallina Development (27, blt: 1973, ren: 2016) operating expenses & Corp. janitorial. Submetered 654-6650 electric. 55. Michael A. Telesca Center For 76,559 7,860 0 $12.00 Gross rent, plus $1.50 elec., Civic Center, Crossroads Daniel O'Neill Justice $1.00 jan. Taxes and CAM and Sister Cities Garages. Cushman & Wakefield/ One West Main Street over base year. Guard Nearby surface lots. Pyramid Brokerage Co. (10, blt: 1966) service. 248-9426 x324

56. Michaels/Stern Building 67,352 17,500 16,994 N/A Taxes, insurance, CAM, Guaranteed parking Diana Williams 87 N. Clinton Avenue parking. available, plus public Buckingham Properties (7, blt: 1910, ren: 2002) parking in St. Joseph's 295-9500 Garage and area surface lots.

57. Miller Center 48,475 8,400 0 N/A Triple net. East End Garage, nearby Kurt Ziemendorf (Formerly Eastman Place) surface lots. Landsman Real Estate 387 E. Main Street Services (5, blt: 1988) 427-7570

58. Monroe Square 146,155 N/A 0 N/A Gross plus utilities and Adjacent parking lot. Adam Borrell 259 Monroe Avenue janitorial. Buckingham Properties 287-5861

RDDC Survey of Downtown Office Space - May 2017 Competitive Building Listing, Page 11 INDIVIDUAL BUILDING INFORMATION Competitive Office Space MAY 2017

BUILDING NAME/ADDRESS NET AVG. NUMBER OF FLOORS/ LEASABLE FLOOR VACANT ASKING INCLUSIONS/ YEAR BUILT/ S.F. SIZE S.F. RENT ESCALATORS PARKING CONTACT RENOVATED

59. Novamac Building 10,000 3,000 0 $16.00 Heat, electric, A/C, taxes, Nearby surface lots. William McDonnell, Jr. 73 State Street insurance, CPI increases., Close to Sister Cities and Novamac (4, blt: 1986) janitorial. Escalators on Crossroads Garages. 454-1160 x 210 taxes and utilities.

60. Offices at Alex Park 80,000 33,333 0 N/A Triple net, parking included. Adjacent parking garage Courtney Janto Professional Center Health care & medical office and lot. Buckingham Properties 330-350 Monroe Avenue building. 295-9500 (5, blt: 1993)

61. One East Avenue Building 78,607 5,700 21,204 $14.50 Plus janitorial; escalators on St. Joseph's and East End Kurt Sertl 1 East Avenue operating expenses and real Garages. Nearby surface Gallina Development (11+b, blt: 1962, ren: 1985) estate taxes. lots. Corp. 654-6650

62. One Forty Main West 39,900 8,900 11,600 $11.00 - 14.00 Includes heat, janitorial & on- On-site 150-car parking Mercedes Brien 140 West Main Street site parking. Escalators on lot. Mission Commercial (4+b, blt: 1870, ren: 1987) taxes, utililities and Realty insurance, pro-rated 348-9170 annually. 63. Parry Building 8,200 4,100 0 $11.00 - 16.00 CAM and garbage, Some spaces available on- Peter Freund 224 Mill Street escalators include water. site. Additional parking Parry Building LLC (4, blt: 1880, ren. ongoing) at High Falls Garage and 721-6846 adjacent surface lots.

RDDC Survey of Downtown Office Space - May 2017 Competitive Building Listing, Page 12 INDIVIDUAL BUILDING INFORMATION Competitive Office Space MAY 2017

BUILDING NAME/ADDRESS NET AVG. NUMBER OF FLOORS/ LEASABLE FLOOR VACANT ASKING INCLUSIONS/ YEAR BUILT/ S.F. SIZE S.F. RENT ESCALATORS PARKING CONTACT RENOVATED

64. Partners Building 45,000 7,500 0 N/A N/A 20 spaces per floor Lewis Norry 192 Mill Street available at High Falls Norry Management (6+b, blt: 1888, ren: 2000) garage directly opposite Company 192 Mill. Nearby surface 271-4800 lots.

65. Powers Building 140,203 17,000 48,619 $12.50 - 16.50 CAM, janitorial, taxes, Attached 1,000+ space Mark Stevens 16 W. Main Street HVAC, security, insurance, parking garage. Nearby S.B.. Ashley & Assoc. (10+b, blt: 1865, ren: 1990) high quality workletter. surface lots and Venture Co., LLC Crossroads Garage. 454-4840

66. Radisson Hotel Rochester 6,665 N/A 3,663 $7.00 - 15.00 Taxes, CAM, utilities. Attached Radisson Matthew Bryant Riverside Janitorial additional. parking garage, plus Radisson Hotel Rochester 120 East Main Street South Avenue Garage. Riverside (14, blt: 1971) 546-6400

67. Reynolds Arcade 80,000 5,000- 11,600 $12.50 Taxes, CPI increases, CAM, Crossroads and Sisters Chris Hill 16 East Main Street 10,000 security, elec., heat, A/C, Cities Garages. Nearby I. Gordon Corporation (10+b, blt: 1930, ren: on-going) insur. Escalators on taxes surface lots. 546-8114 and utilities.

68. Richard E. Wilson Building 36,677 3,455 $14.00 Triple net. Parking inside building Scott Burdett 109 South Union Street and in adjacent lot. Flaum Management (4, blt: 1975) Company, Inc. 546-4866

RDDC Survey of Downtown Office Space - May 2017 Competitive Building Listing, Page 13 INDIVIDUAL BUILDING INFORMATION Competitive Office Space MAY 2017

BUILDING NAME/ADDRESS NET AVG. NUMBER OF FLOORS/ LEASABLE FLOOR VACANT ASKING INCLUSIONS/ YEAR BUILT/ S.F. SIZE S.F. RENT ESCALATORS PARKING CONTACT RENOVATED

69. Riedman Tower 64,038 7,200- 10,993 Negotiable Full service with escalators East End Garage, and David Riedman 45 East Avenue 10,600 over base year. nearby surface lots. Riedman Development (8+b, blt: 1983) Corp. 232-2600 x101

70. Rochester Club Centre 32,448 9,000 4,950 $8.00 - 12.00 Triple net. East End Parking Garage Pete Gillett 120 East Avenue adjacent to building. DHD Ventures, LLC (4, blt: 1870, ren: 1989) 629-0644

71. Seneca Building 160,000 36,000 56,000 $14.00 Triple net; rent includes Allocated 176 spaces in Dan Saperstone 20 South Clinton Avenue taxes ($3/sf), first year CAM underground Midtown The Cabot Group (3, blt: 2012) ($4/sf), and all operating Garage by City of 381-1500 expenses except janitorial. Rochester. Tenant to pay their own suite electricity which is submetered. 2% annual increases on base rent.

72. Seventeen Main St. East 14,000 3,000 8,000 $11.00 Modified gross. Crossroads, Sister Cities Joe Rowley Building and Civic Center SVN Realty Performance 17 E. Main Street Garages. Nearby surface Advisors (5, blt: 1890, ren: 1970's) lots. 697-0901

RDDC Survey of Downtown Office Space - May 2017 Competitive Building Listing, Page 14 INDIVIDUAL BUILDING INFORMATION Competitive Office Space MAY 2017

BUILDING NAME/ADDRESS NET AVG. NUMBER OF FLOORS/ LEASABLE FLOOR VACANT ASKING INCLUSIONS/ YEAR BUILT/ S.F. SIZE S.F. RENT ESCALATORS PARKING CONTACT RENOVATED

73. Sibley Square 410,000 40,000 350,000 $17.00 Gross rent + tenant utilities. Attached St. Joseph's Ken Greene 260 East Main Street Garage, Mortimer WinnDevelopment (12+b, blt: 1930, ren: 2016) Garage, and nearby 747-6000 surface lots.

74. Talman Building 20,000 N/A 4,400 $10.00 - 15.00 Utilities, taxes, CAM, A/C, Crossroads, Sister Cities Amanda Adams 25 E. Main Street with escalators on taxes and & Civic Center Garages. Webster Properties (5, blt: 1825, ren: 1997) utilities. Nearby surface lots. 465-5027

75. Temple Building 12,750 10,000 2,900 $4.75 - 8.75 Triple net plus metered St. Joseph's and East End Andrew Kingsley 14 Franklin Street electric. Garages, plus nearby Costanza Enterprises, Inc. (14+b, blt: 1925, ren: on-going) surface lots. 232-3600 x106

76. Three City Center 208,658 28,100 148,751 $18.50 Triple net plus electric. Washington Square Peter Landers 180 South Clinton Avenue Garage. Landers Management (7, blt: 1987, ren: 2017) 738-1171

77. Times Square Building 95,000 8,000 6,960 $10.50 - 12.50 CAM, security, insurance, Civic Center Garage, Rich Calabrese, Jr. 45 Exchange Street heat, A/C. Plus electric & nearby surface lots. Times Square Associates (12, blt: 1930) janitorial. High speed 232-6560 internet access. Escalators on taxes and maintenance over base year.

RDDC Survey of Downtown Office Space - May 2017 Competitive Building Listing, Page 15 INDIVIDUAL BUILDING INFORMATION Competitive Office Space MAY 2017

BUILDING NAME/ADDRESS NET AVG. NUMBER OF FLOORS/ LEASABLE FLOOR VACANT ASKING INCLUSIONS/ YEAR BUILT/ S.F. SIZE S.F. RENT ESCALATORS PARKING CONTACT RENOVATED

78. Tower280 79,000 N/A 0 $16.00 - 18.00 CAM, insurance, taxes, and Midtown Garage. Courtney Janto 280 Broad Street HVAC with escalators. Buckingham Properties (17, blt: 1962, ren: 2016) 295-9500

79. Triangle Building 29,000 6,800 0 $14.00 Taxes, electric, A/C, heat. St. Joseph's and East End Michael Palumbo 335 East Main Street Escalators on taxes and Garages, nearby surface Flaum Management (5+b, ren: 1988) utilities. LONG-TERM lots. Company, Inc. LEASE WITH NYS. 546-4866

80. Union Trust Building 68,126 6,200 40,200 $10.00 Rent plus $1.50 electric, Civic Center, Crossroads Daniel O'Neill 19 West Main Street $1.00 janitorial. Taxes, and Sister Cities Garages. Pyramid Brokerage Co. (10+b, blt: 1800, ren: on-going) CAM, heat, security, Nearby surface lots. 248-9426 insurance, A/C. Escalators on taxes and utilities.

81. University Place 18,000 14,800 0 $12.00 Includes all but electric, East End Garage, nearby Tamra Bald 316-328 E. Main Street water & janitorial. surface lots. Barrington Residential (5, N/A) 546-2240

82. Valley Building 60,000 23,645 10,860 $10.00 - 13.00 Triple net. Adjacent parking garage. Pete Gillett 339 East Avenue DHD Ventures, LLC (4, blt: 1930, ren: on-going) 629-0644

RDDC Survey of Downtown Office Space - May 2017 Competitive Building Listing, Page 16 INDIVIDUAL BUILDING INFORMATION Competitive Office Space MAY 2017

BUILDING NAME/ADDRESS NET AVG. NUMBER OF FLOORS/ LEASABLE FLOOR VACANT ASKING INCLUSIONS/ YEAR BUILT/ S.F. SIZE S.F. RENT ESCALATORS PARKING CONTACT RENOVATED

83. Washington Building 53,148 11,000 14,975 $13.50 - 15.50 Taxes, CAM, insurance, Area surface lot adjacent Adam Borrell 1 S. Washington Street HVAC. to building, and across Buckingham Properties (5 + b, blt: 1898) Broad Street 287-5861

84. Water Street Commons 41,000 15,000 6,609 Negotiable Taxes, insurance, CAM, Tenant parking in Diana Williams 189 North Water Street parking. adjacent garages. Buckingham Properties (2, blt: 1892, ren: 1986) 295-9500

85. Wegman Building 33,000 5,500- 0 N/A N/A Sister Cities Garage, Bernie Iacovangelo 78-80 West Main Street 11,000 nearby surface lots. Faber Real Estate (4+b, blt: 1890, ren: 1984) Services, Inc. 889-4840 x109

86. Wilder Building 53,400 5,000 13,400 $8.00 Taxes, CAM, heat. Crossroads, Sister Cities Patrick Reibling 1 East Main Street Escalators on taxes. and Civic Center Wilder 4 Corners (11+b, blt: 1896) Garages. Nearby surface Associates, Inc. lots. 313-3779

87. Xerox Tower 800,000 26,667 0 N/A N/A Underground garage. Tom Latta 1 Xerox Square Buckingham Properties (30, blt: 1968) 295-9500

RDDC Survey of Downtown Office Space - May 2017 Competitive Building Listing, Page 17

REPORT DEFINITIONS

The information in this report is compiled annually by Rochester Downtown Development Corporation in an on-going effort to track the downtown office market. It represents a snapshot of the conditions that existed in May of each year. The 2017 Survey contains the most accurate figures on a building-by-building basis for 2017 and summary data for all prior survey years.

Building Classifications

Both competitive and non-competitive space is tracked in the Survey, which includes 115 downtown office buildings in 2017 (the total number of buildings varies by year).

In the May 2017 report, the classifications for downtown’s “competitive” buildings are a blend of six categories. Two of these utilize BOMA International’s office space rating categories (A and B), and four have been developed over the years by RDDC to more accurately reflect market conditions in downtown Rochester (A/R, Non-Traditional, Medical, Non-Competitive). The Non-Traditional category was added in 2003, and the Medical category in 2010.

In all cases, the classifications reflect the competitive ability of each building to attract similar types of tenants. A combination of factors is used as a relative measure including: rent, market perception, building finishes, building amenities, location and accessibility, and system standards and efficiency.

The definitions used for RDDC’s building classification system are as follows:

▪ CLASS “A” – Most prestigious buildings competing for premier office users with rents well above average for the area. Buildings have high quality standard finishes, state of the art systems, exceptional accessibility, and a definite market presence.

▪ CLASS “A/R” – Substantially rehabilitated buildings considered prestigious which compete for premier office users with rents above average for the area. Buildings have high quality standard finishes, state of the art systems, exceptional accessibility, and a definite market presence.

▪ CLASS “B” – Buildings competing for a wide range of users with rents in the average range for the area. Building finishes are fair to good for the area, systems are adequate, but the building can no longer compete with Class “A” at the same price.

▪ NON-TRADITIONAL (“N/T”) – Buildings are older and often feature some combination of unusual floor layouts, high ceilings, large windows, exposed brick interior walls, wood floors, interesting architectural details, and locations that are not as central. Generally outside the conventional office market, these buildings tend to attract mixed- use development (e.g., office/loft housing), as well as “creative class” tenancy.

▪ MEDICAL (“M”) – Spaces structured to accommodate medical offices, lab spaces, and medical testing facilities.

(Report Definitions, May 2017, page two)

▪ NON-COMPETITIVE (“N/C”) – Buildings or spaces within buildings where the owner is the sole occupant.

Glossary of Terms

The terms used in this report are defined below.

“a,” “b,” “sb” – Attic, basement, and sub-basement.

Absorption – The change in occupied space over time.

A/C – Cost of air-conditioning (pro-rata share).

CAM – Cost of common area maintenance (pro-rata share).

CPI – Consumer price index.

Elec. – Cost of electricity (pro-rata share).

Insur. – Cost of annual building insurance premiums (pro-rata share).

Jan. – Cost of in-office janitorial services (pro-rata share).

LL – Lower level.

NLOS – Net leasable office space.

Occupied space – Space currently under lease.

Vacant space – Space not currently under lease.

RDDC welcomes additions or corrections, as well as suggestions regarding next year’s survey. The 2017 Survey reflects any corrections in summary data retroactively for the reporting years 2008 through 2016, and previous reports should be discarded. The tables in the 2017 report provide data that permit accurate comparisons over this ten-year period.

RDDC – 5/17 www.rochesterdowntown.com