RESEARCH 1Q 2021

The Expansion of New Current Conditions

– The weighted average asking price decreased from $ 28.58/ SF in the prior Submarkets quarter, averaging $26.86/SF. – Class A vacancy raised compared to the 15.50% in previous quarter, averaging The Office Market 16.67% of the total rental area. – Q1 2021 shows a negative net absorption of 284,565 SF, recovering some of the negative 435,339 SF in the previous quarter. At the beginning of 2021 and after a year of social, preventive and compulsory isolation in , the national vaccination campaign began. Economic activities will now have a chance to fully recover. In Market Analysis

March 2021, schooling returned and some employees returned to offices, ASKING RENT AND AVAILABILITY under health protocols. Its continuity depends on the framework of $35 30% restrictions that the government decrees based on the evolution of the 25% pandemic. $28 20% $21 The office market is the largest in Argentina, with 28.11 15% $14 million square feet of total stock, including 17.87 million square feet of 10% $7 5% rentable Class A space. $0 0% 1Q20 2Q20 3Q20 4Q20 1Q21 In the first quarter of the year, there was a slight increase in vacancy and Avg. Asking Rent (US$/SF/YR) Vacancy Rate (%) net absorption, which continues on the negative path. The vacancy rate during this first quarter closed at 16.67% of the available stock, and the NET ABSORPTION net absorption was negative 284,565 square foot. The average rental value decreased compared to fourth-quarter 2020, averaging US 1.200.000 $26.86/SF. 900.000 600.000 No new Class A office stock was added this first quarter. The stock was re- 300.000 categorized, given that some of the buildings were obsolete with the new 0 market demands. Two new submarkets were added: Palermo and Parque -300.000 -600.000 Patricios. 1Q20 2Q20 3Q20 4Q20 1Q21

New Inventory (SF) Net Absorption (SF)

Argentina Market Summary Current Prior Year Ago 12 Month Capital City Buenos Aires Quarter Quarter Period Forecast

Population (estimated 2021) 45,808,747 Total Inventory (Const.) 28,1 MSF 27,0 MSF 27,0MSF ↗︎ Total Stock (Lettable) (*) 17,8 MSF 17,1 MSF 17,1MSF ↗︎ GDP MM US$ 445.445 Availability Rate 16.67% 13.50% 13.50% ↗︎

GDP per capita MM US$ 7.117 Quarterly Net Absorption -284,565SF -435,339 SF -435,339SF ↗︎

Currency Peso Average Asking Rate $26.86 $28.58 $28.58 ↘︎

Under Construction 2,5 MSF 3,6 MSF 3,6 MSF ↘︎ Unemployment Rate 11.0% (*) Includes the recategorization of stock and the inclusion of 2 new submarkets

1 RESEARCH 1Q 2021

Rent Values by Submarket CABA SUBMARKETS Every submarket has a particular area or properties that outperforms the AVERAGE ASKING RENT ($/SF/YR) – AVAILABILITY RATE (%) rest. Significant variations can be verified between properties and the average of each submarket. 30.03 Avg. CATALINAS RETIRO Asking Rate An example of this are the blocks located in Catalinas between Av. LN 11.63 ($/SF/YR) Availability Alem and Av. Madero, where average asking rents reach US $39.02/SF, Rate 27.03 while in the rest of said submarket, the average rent is US $27.10/SF. (%) 13.83 In the Northern Zone of Buenos Aires, the building Centro Empresarial 9 DE JULIO 27.10 Libertador stands out with a monthly rental of US $36.79/SF, while the average rent in the rest of the submarket is US $28.15/SF. 27.59 16.30

25.64 The Panamericana Corridor has areas that are in high demand because of MICROCENTRO the submarket´s geographical distribution and extension. The most in- demand offices are found in corporate complexes such as Lumina Panamericana, Thames Office Park, Urbana, Optima Business Park, Bureau Parc San Isidro and Edision Officia, with the lowest vacancies and highest average rent. Although asking rents in these buildings reach US $25.00/SF, the average rent for the rest of the submarket is US $22.17/SF. 17.47 Inventory Change 31,58

No relevant incorporations occurred in the Class A market in first-quarter ZONA SUR 2021. The stock variation corresponds to the incorporation of Parque 24.38 Patricios and Palermo as new submarkets. 4.73 Since 2014, due to a political decision to install the headquarters of the city government and generate benefits for its development, Parque Patricios has consolidated as a new office submarket. This submarket contributes to stock with 10 buildings, with 2.16 million square feet built and 1.62 million square feet of rentable space; that represent 9.1% of the NORTHERN AREA SUBMARKETS total inventory and a vacancy of 4.73%. AVERAGE ASKING RENT ($/SF/YR) – AVAILABILITY RATE (%) Eighty percent of the rentable area belongs to corporate headquarters, such as the with a total built area of 484,375 square Avg. Asking Rate feet and 409,028 square feet of rentable space; Prisma and OSDE ($/SF/YR) headquarters has a total built area of 290,625 square feet and 232,500 Availability square feet of rentable space; and the Accenture building adds a total Rate (%) built area of 241,111 square feet and 193,750 square feet of rentable space, all of them without vacancy. 28.15 19.89 9.78 The buildings developed by HIT in 5 and 8 add up to 317,535 square feet of 15.06 CORREDOR built area and 206,667 square feet of rentable space; Tesla Patricios II adds LIBERTADOR CORREDOR a total built area of 296,000 square feet and 176,528 square feet of PANAMERICANA rentable space. The occupancy is 90.0% in both cases. 26.06 34.00 The Palermo submarket was added to the inventory in this quarter, with 28.79 30.36 six buildings totaling 361,420 square feet of total built area and 201,985 POLO DOT square feet of rentable area, representing 1.1% of the total stock. Most of ZONA NORTE CABA the buildings in this submarket are full, while others, such as the recently 28.61 completed WO LEAF Building, with 74,378 square feet of rentable space, is 49.34 almost 100% available, raising the average vacancy of the submarket to PALERMO 49.34%.

. NEWMARK BUENOS AIRES OFFICE MARKET 2 RESEARCH 1Q 2021

The Expansión of New Submarkets Average Asking Rate - Availability

CLASS A In March 2021, according to the ranking “Global Cities of the Future

2021/22 ”published by the fDi Intelligence division of the prestigious 20% international media Financial Times, Buenos Aires was selected in third $40 place, after New York and Moscow, as one of the cities with the best 15% foreign direct investment strategy. This recognition is the result of several $30 policies, infrastructure development & urban security and the qualified 10% human capital. $20

According to information published by the City Government , Buenos 5% $10 Aires is the place of origin of the five “Argentine unicorns” and headquarters of more than 3,200 tech companies that employ almost $0 0%

80,000 people; that is around 62% of the argentine companies in that

2017 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2018 2019 2020 2021 industry.

Parque Patricios: Tech District Avg. Asking Rent ($/SF/YR) Vacancy (%)

Planned as part of a comprehensive urban development, Parque Patricios Inventory – Availability - Average Asking Rate was designated as a Technology District, offering a series of tax benefits INVENTORY BY SUBMARKET for companies located in it until 2035. To date, there are 345 registered companies located there, with around 20,000 direct employees. 5.000.000 40

These benefits range from exemptions of taxes as gross income and real 4.000.000 32 estate taxes for the companies, as well as tax benefits for builders and special credit lines for the purchase and construction of the buildings. 3.000.000 24

All this explains why, in recent years, several office buildings designed 2.000.000 16 and oriented for the technology industry have been developed in this district. These are flexible offices with large open spaces focused on 1.000.000 8 collaborative work and innovative amenities for socialization, valued by

new generations of employees. 0 0

Retiro

Palermo

Polo Dot Polo

Zona Sur Zona

Catalinas

9 Julio 9 de

Libertador

Zona Norte Zona

Microcentro

Panamericana

Puerto Madero Puerto Parque Patricios Parque

Inventory (SF) Vacancy Rate (%) Avg. Asking Rent ($/SF/YR)

Inventory Composition Availability Composition

Puerto Madero Puerto Madero Zona Sur Zona Sur 6,7% 3,9% 17,6% 10,0% 17,2% 11,1% Microcentro Microcentro Catalinas - Retiro Catalinas - Retiro 6,1% 11,9% 6,9% 9 de Julio 9 de Julio 11,6% 4,8% 5,3% Parque Patricios Parque Patricios 8,8% 1,1% Palermo Palermo 8,1% 9,1% 3,3% Zona Norte CABA Zona Norte CABA 2,6% 5,0% 26,3% Polo Dot 4,2% 18,3% Polo Dot GBA Panamericana GBA Panamericana GBA Libertador GBA Libertador

NEWMARK BUENOS AIRES OFFICE MARKET 3 RESEARCH 1Q 2021

Palermo GDP

Palermo is part of the Audiovisual District; that also includes the Chacarita, Villa Ortuzar, Paternal and neighborhoods. To 10% promote development, the City of Buenos Aires offers similar benefits and 5% tax exemptions to the Technology District until 2026.

0% According to information published by the city government, audiovisual activities are the most dynamic segment of the economy, with more than -5% 1,900 companies based in the city that employ more than 18,600 people. -10% This submarket is in full expansion, with more than 1.29 million square

feet under construction and 646,000 square feet of rentable area that will -15%

2006 2013 2005 2007 2008 2009 2010 2011 2012 2014 2016 2017 2018 2019 2020 2021 be added to the stock in the next two years. 2004

To adapt to the new post-pandemic scenario, the office market will have Source: INDEC to respond with more technology to building hygiene, either through new 2015 = Value estimated by World Bank ventures or retrofitting existing ones. This will likely lead to a new generation of buildings. Exchange Rate – CPI New spaces will have to consider both the need for socialization of employees and alternatives to improve productivity. That is, more open 100% $ 100 spaces and with more technology to develop work team meetings, as well 80% $ 80 as more close and intimate spaces for the workstations. 60% $ 60 The tendency will be flexible work; this trend will also incorporate new 40% $ 40 office spaces apart from the headquarters and located near employee homes. Palermo, as one of the most populated areas in Buenos Aires, can 20% $ 20

take advantage of these conditions to enhance its expansion. 0% $ 0

2016 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2017 2018 2019 2020 2021 * 2021

CPI (%) Exchange Rate BNA (AR$)

Source: Banco de la Nación Argentina, INDEC 1999-2007/2015-2021 INDEC 2008-2014 Calculated through the weighted geometric average of the consumer price indexes provided by the provisional statistical institutes

Real Estate Cycle

OFFICE MARKET, INDUSTRIAL MARKET, RETAIL

Warehouses West &South area Ware Houses Retail North Area

Prime Offices

Offices Buenos Aires Ciity Offices North Area

Rental Decline - Slowing Rental Growth - Accelerating Rental Growth - Slowing Rental Decline - Accelerating

NEWMARK BUENOS AIRES OFFICE MARKET 4 RESEARCH 1Q 2021

Market Statistics

Under Total Inventory Total Availability Qtr. Absorption YTD Absorption Direct Asking Rent Sublet Asking Rent Total Asking Rent Construction (SF) Rate (SF) (SF) ($/SF/YR) ($/SF/YR) ($/SF/YR) By Submarket (SF)

CABA

Puerto Madero 3,145,771 0 16.30% 5,317 5,317 $27.10 N/A $27.10

Zona Sur 1,098,725 0 31.58% -9,494 -9,494 $17.47 N/A $17.47

Microcentro 943,477 134,947 25,64% -65,606 -65,606 $27.59 N/A $27.59

Catalinas-Retiro 4,694,470 800,834 11.63% -60,342 -60,342 $30.03 N/A $30.03

9 de Julio 895,998 0 13.83% -86,11 -86,11 $27.03 N/A $27.03

Parque Patricios 1,621,183 0 4,73% 0 0 $24.38 N/A $24.38

Palermo 201,984 648,600 49,34% 0 0 $28.61 N/A $28.61

Zona Norte CABA 863,739 467,325 30.36% -38,729 -38,729 $34.00 N/A $34.00

Polo Dot 1,228,979 0 28.79% -2,949 -2,949 $26.06 N/A $26.06

GBA

Corredor Panamericana 1,979,363 492,061 15.06% -92,268 -92,268 $22.17 N/A $22.17

Corredor Libertador 1,200,326 0 9.78% -20,408 -20,408 $28.15 N/A $28.15

By Class

Class A 17,874,016 2,543,768 16.76% -284,565 -284,565 $26.86 N/A $26.86

NEWMARK BUENOS AIRES OFFICE MARKET 5 RESEARCH 1Q 2021

Main Class A Buildings Under Construction

Total Area Lettable Area Proyect Submarket Date LEED Certification (SF) (SF)

Worko GBA Panamericana 526,279 421,020 3Q 2021

Park 10 GBA Panamericana 86,111 64,583 3Q 2021

Mirabilia Central Palermo 398,264 182,340 4Q 2021

Quartier Puerto Catalinas Retiro 418,500 348,750 1Q 2022 Retiro

Mirabilia 851 Palermo 645,834 319,903 4Q 2022

Bureau Diagonal Microcentro 185,505 134,947 4Q 2022

Libertador y Pampa Zona Norte CABA 263,715 219,755 4Q 2022

Nómada Palermo Palermo 269,098 146,357 3Q 2023

Campos Salles Zona Norte CABA 538.195 247,570 3Q 2023

Alem y Córdoba Catalinas Retiro 645,834 452,084 1Q 2025

Areas of the projects are approximate. Pictures are illustrative.

NEWMARK BUENOS AIRES OFFICE MARKET 6 RESEARCH 1Q 2021

For more information: Glossary of Terms Headquarters Maipú 1300, 6th floor Absorption C1006ACT, Ciudad Autónoma de A measure of the change in occupied space. Buenos Aires, Argentina t +54-11-4311-9500 Availability Space marketed for lease regardless of when the space will be Domingo Speranza available or whether the space is vacant or occupied. Founder and CEO Deliveries [email protected] The total RBA of properties added to the inventory once construction has been completed. Market Research [email protected] Direct Space Available space offered for lease by the building owner, nmrk.com.ar landlord, or owner representative. Leasing Activity The volume of leases signed including new leases, direct and sublet leases, extensions and renewals, and leases signed in proposed or under construction buildings. Occupancy Any space physically occupied by a tenant, regardless of lease status of the space. Rentable Building Area (RBA) A measurement of the total square feet in a building including the tenant and common areas such as the lobby and hallways. Sublet Space Available space offered for lease by a building tenant seeking a subtenant to fulfill the remaining lease obligation. Under Construction Buildings under construction are defined by the time the foundation is poured through the time the building is certified for occupancy. Vacancy Space not physically occupied by a tenant, regardless of the lease status or availability of space. Weighted Average Rent The asking dollar amount for the use of available space, weighted by size (the average does not include negotiable or unpublished rates and is reported as full service including operating costs).

Newmark has implemented a proprietary database and our tracking methodology has been revised. With this expansion and refinement in our data, there may be adjustments in historical statistics including availability, asking rents, absorption and effective rents. Newmark Research Reports are available at ngkf.com/research. All information contained in this publication is derived from sources that are deemed to be reliable. However, Newmark has not verified any such information, and the same constitutes the statements and representations only of the source thereof not of Newmark. Any recipient of this publication should independently verify such information and all other information that may be material to any decision the recipient may make in response to this publication and should consult with professionals of the recipient’s choice with regard to all aspects of that decision, including its legal, financial and tax aspects and implications. Any recipient of this publication may not, without the prior written approval of Newmark, distribute, disseminate, publish, transmit, copy, broadcast, upload, download or in any other way reproduce this publication or any of the information it contains. This document is intended for informational purposes only, and none of the content is intended to advise or otherwise recommend a specific strategy. It is not to be relied upon in any way to predict market movement, investment in securities, transactions, investment strategies or any other matter.

NEWMARK BUENOS AIRES OFFICE MARKET 7