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MARKETVIEW SNAPSHOT

Midtown South Office, December 2017

Strong positive absorption pushes availability rate down 50 basis points month-over-month Figure 1: Midtown South Market Activity Nov. 2017 Oct. 2017 Nov. 2016 YTD 2016 YTD 2017 Leasing Activity 0.70 MSF 0.48 MSF 0.35 MSF 3.97 MSF 4.66 MSF Renewals 0.08 MSF 0.01 MSF 0.02 MSF 0.40 MSF 0.47 MSF Absorption 0.44 MSF 0.12 MSF (0.43) MSF (1.66) MSF (0.41) MSF Availability Rate 10.1% 10.6% 9.8% Vacancy Rate 6.2% 6.7% 6.3% Average Asking Rent $72.32 PSF $71.81 PSF $68.55 PSF Taking Rent Index 92.9% 93.5% 92.5% Source: CBRE Research, December 2017.

MARKET HIGHLIGHTS • Monthly leasing activity totaled 703,000 sq. ft., up 66% from its five-year monthly average of 424,000 sq. ft. • Year-to-date leasing activity was up 17% from the same period last year. • Renewals totaled 83,000 sq. ft. in November, bringing the year-to-date figure to 465,000 sq. ft. • The availability rate fell 50 basis points (bps) from last month, but remained up 30 bps from one year ago. • Net absorption was 438,000 sq. ft. in November, bringing the year-to-date total to negative 408,000 sq. ft. • The average asking rent was $72.32 per sq. ft., virtually unchanged from last month and up 6% from one year ago. • Sublease availability dipped 30 bps to 2.8% month-over-month, with an average asking rent of $58.65 per sq. ft., up 6% from a year ago.

Figure 2: Top Lease Transactions Size (Sq. Ft.) Tenant Address 212,500 MasterCard Worldwide 150 27,678 (R) IBM 19 Union Square West 26,150 (R) Meetup, Inc. 632 25,000 Knotel 28 West 22,500 Ipsos North America 360 South Source: CBRE Research, December 2017. (R) Renewal (E) Expansion (RE) Renewal and Expansion

MAJOR NEW AVAILABILITIES • 40,000 sq. ft. of direct space at 130 Fifth Avenue • 28,000 sq. ft. of Collective Media, Inc. sublet space at 250 Hudson Street • 26,000 sq. ft. of Orchard sublet space at 386 Park Avenue South • 14,000 sq. ft. of direct space at 568 Broadway • 14,000 sq. ft. of Gersh Agency NY, Inc. sublet space at 41

For more information, please contact: Mike Slattery at +1 212 656 0583 or [email protected] Philip Stern at +1 212 656 0516 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.

© 2017 CBRE, Inc. This Snapshot reflects market activity through November 30, 2017. 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.