Q3 2011 | DoWNtoWN oFFIce research report | third quarter 2011 | downtown chicago | office

ChiCago OFFICE MARKET OVERVIEW

Stable But Vulnerable Six consecutive quarters of positive demand in the Chicago CBD offi ce market would seem to insinuate a sustained recovery is on the horizon. Yet, despite vacancy rate decreases, the market remains in a vulnerable state, precariously teetering between stabilization and a second round of market softening.

An unmistakable dichotomy exists in the market, with a strong divide in fundamentals based upon tenant size and asset quality. This dynamic has essentially resulted in two contrasting markets within market indiCators the CBD – one with fi rming rental rates and constrained space options and another showing an Overall Chicago CBD abundance of availabilities and depressed market conditions.

3Q10 3Q11 Smaller tenants, defi ned as those occupying less than 25,000 square feet of space, are still benefi ting VaCanCy rate 16.1% 15.6% from a plethora of space options and landlords of buildings with high vacancy continue to compete aggressively for these tenants. This segment of the market remains a “tenant’s market” where rents absorption (sf) -378,946 582,266 and concessions are typically tenant-favorable. On the contrary, larger tenants are experiencing a rents $32.14 $31.32 lack of quality space options, resulting in a tightening market with fi rming rental rates. Additionally, over the last two years, an opportunity has existed for tenants to upgrade to higher quality buildings inVentory 140,514,843 140,514,843 at reduced pricing. As this fl ight to quality continues, the gap between top-tier Class A space and its Class B and C counterparts continues to widen, further segmenting the market.

During the early part of this year, economic indicators seemed to point to potential stabilization, thereby boosting confi dence and fueling modest demand in the CBD. However, recent economic events have once again spurred concerns about the long-term global economic outlook. Uncertainty about our current and future administration, the unknown impact of Europe’s economic crisis and the negative activity experienced in the U.S. fi nancial markets during the last quarter, have left many tenants frozen in their decision making processes and reluctant to make longer term lease commitments. One exception to this trend is large corporate users who are less hesitant to sign long- term leases. These users are taking full advantage of the downturn in an eff ort to realize effi ciencies through space contractions and reduced rental obligations.

Further contributing to longer lead times to secure lease commitments are landlord concerns about the long-term viability of tenants. Landlords have begun scrutinizing tenants’ fi nancial statements and business models in an eff ort to project future earnings and determine the likelihood that a company will sustain long enough to meet its leasehold obligations. As landlords continue to demand extra lease securitization, many tenants struggle to fi nd the extra capital required and remain skeptical about signing new leases. Conversely, tenants have also recognized the importance of investigating the fi nancial statements of landlords in a time when many are overleveraged and possess poor ownership structures.

Colliers international | p. 1 research report | third quarter 2011 | downtown chicago | office

Widespread indecision and fears about over-committing have resulted in increased demand for shorter term leases along with a desire for space with existing conditions. Many landlords have responded to this trend by developing spec suites which are usually leased on a shorter term basis and are already built-out, limiting the amount of capital a tenant would need to invest in the space. Tenants continue to quickly absorb this space, buying time while they consider their long-term position.

Despite the uncertainties that exist in the market, several bright spots exist in the CBD, namely corporate migration from the suburbs, the mayor’s commitment to fueling job growth and the rapidly expanding technology industry. The CBD continues to successfully attract large users from the suburbs. Increased urbanization levels are anticipated in future quarters as more companies value being located downtown over the suburbs due to direct access to a talented labor pool, the desire for more amenities, and the push for work-life balance. The mayor’s initiative to spur corporate job growth in the CBD appears to be successful as several announcements of long-term employment commitments were made by companies such as GE, Accenture, Google and Motorola. Further, technology and software companies are expanding at a rate unseen in Chicago since the tech bubble in 2000, fueling positive absorption and providing some momentum in the market, particularly in the East Loop and River North submarkets which typically attract a more diversified tenant base.

In general, tenants perceive the market to be in a state of flux and expect landlords to consistently respond in an aggressive way by “giving away space.” While landlords with exorbitantly large vacancies still need to remain competitive, the majority are in a holding pattern, maintaining rates and waiting out the downturn, a trend that may initially appear inconsistent with market fundamentals. As a result of the extended period of inconsistencies that has persisted in the market, many landlords are experiencing “down-market” fatigue and are somewhat weary about continued aggressiveness on rents and concessions. Instead, Landlords have begun pursuing specific deals as opposed to offering aggressive terms across the board.

Sustained job growth will be the real catalyst for a market rebound and until that occurs, the market will likely continue to labor along the bottom. Tenants, particularly those that are creditworthy, should continue to remain proactive in evaluating options as the market dynamic will turn rather quickly once landlords sense any shift in fundamentals. Once leasing velocity returns to more normal levels and market conditions improve, rental rate increases and reduced concession packages will inevitably follow.

Colliers International | p. 2 research report | third quarter 2011 | downtown chicago | office

Vacancy and Absorption NNetet Ab sorptionAbsorption & Vacancy & Vacancy central business district During the third quarter, the overall Chicago CBD Central Business District vacancy rate further descended to 15.6 percent, 4,000,000 3,695,540 18.0% 3,468,456 down from 15.8 percent in the prior quarter. For 16.0% 3,000,000 16.00% 15.90% 15.60% the first time in a year, the direct vacancy rate 14.0% 14.40% 2,000,000 fell, ending the quarter at 14.0 percent. Sublease 12.0% Vacanc vacancy remained steady during the quarter at 11.90% 11.90% 1,000,000 582,266 10.0% 1.6 percent. 392,470 0 8.0% y

-218,477 6.0% Square Footage The CBD witnessed positive 264,468 square feet -1,000,000 of net absorption, bringing the year-to-date total 4.0% -2,000,000 2.0% to positive 582,266 square feet. Positive -2,204,759 absorption was reported in three of the five -3,000,000 0.0% 2006 2007 2008 2009 2010 2011 YTD submarkets during the quarter, with the West Source: Costar; Colliers International Research Loop showing the strongest gains.

Submarket Vacancy Rates 2009 - 2011

20.00% 18.0% 17.6% Lease Activity 17.4% 17.5% 17.1% 17.1% 15.7% 15.2% Leasing activity remained strong during 1the4.8% third14.9% quarter as a number of sizable tenants formalized14.7% their leases. Five leases 15.00% 14.3% 14.3% greater than 100,000 square feet were signed in the third quarter alone,1 3four.1% of which were renewals. The largest lease

transaction was PricewaterhouseCooper’sy renewal of 278,000 square 1feet0.2% at 1 N. Wacker Drive, located in the West Loop. 10.00%

Also during the quarter, Vacanc Fifth Third Bank expanded and renewed 218,000 square feet at 222 S. Riverside Plaza in the

West Loop and the American5.0 Bar0% Association renewed and contracted to 201,000 square feet at 321 N. Clark Street in River North. The year-to-date total leasing transactions exceeding 100,000 square feet currently stands at 14, a marked improvement from this time one year ago when only six transactions of this size had been consummated by the end of the third quarter of 0.00% 2010. Central Loop East Loop North Michigan Ave. River North West Loop 2009 2010 2011 Recent Announcements of MajorSource: C Costar;BD Colliers International ResearchThe leasing landscape should remain active in the coming Expansions by Existing Tenants quarters as several large users are evaluating space options and Tenant Growth Plans Timing numerous corporate expansions have recently been announced. 1 n. wacker drive Continental Holdings 1,300 Employees End of 2012

Accenture 500 Employees Mid-2012 Central Business District -Asking Gross Face Rates 400 Employees End of 2012 JP Morgan Chase $45.00

Motorola Solutions 400 $Employees40.00 End of 2012 Class A Average $35.00 Accretive Health 100 Employees In Process Class B $30.00

500 Employees End of 2012 ClassC Ernst & Young $25.00

GE Capital 1,000$2 0Employees.00 In Process

$15.00 Groupon 500 Employees+ In Process $10.00 222 S. Riverside plaza $5.00

$0.00 2006 2007 2008 2009 2010 2011 Source: Costar; Colliers International Research

Colliers International | p. 3 research report | third quarter 2011 | downtown chicago | office

chicago cbd significant Leasing Transactions of third QUARTER 2011

Tenant Address Class Submarket Size (SF) Deal Type PricewaterhouseCoopers 1 N. Wacker Drive A+ West Loop 279,000 Renewal Fifth Third Bank 222 S. Riverside Plaza B West Loop 218,000 Renewal/Expansion American Bar Association 321 N. Clark Street A River North 201,000 Renewal/Contraction Edelman 200 E. Randolph Street A East Loop 178,000 Renewal/Expansion Integrys 200 E. Randolph Street A East Loop 150,000 New Lease kCura 231 S. LaSalle Street B Central Loop 76,000 Sublease Skidmore Owings & Merrill 224 S. Michigan Avenue B East Loop 69,000 Renewal/Expansion Acquity Group 500 W. Madison Street A West Loop 65,000 Renewal/Expansion Catholic Charities 641 W. Lake Street C West Loop 64,000 Renewal OWP&P Cannon Design 205-225 N. Michigan Avenue B East Loop 61,000 New Lease Ventas 353 N. Clark Street A+ River North 57,000 New Lease/Sublease Paul Hastings 191 N. Wacker Drive A West Loop 53,000 Renewal The Northern Trust Company 231 S. LaSalle Street B Central Loop 42,000 Sublease/Expansion Cushman & Wakefield 200 S. Wacker Drive B West Loop 40,000 New Lease Administrative Office of the Illinois Courts 222 N. LaSalle Street B Central Loop 40,000 Renewal bSwift 10 S. Riverside Plaza B West Loop 37,000 New Lease Banner & Witcoff 10 S. Wacker Drive A West Loop 35,000 Renewal/Expansion American Cancer Society 225 N. Michigan Avenue B East Loop 34,000 Renewal Performance Trust 500 W. Madison Street A West Loop 32,000 Renewal/Expansion Youth Connection Charter School 17-25 N. State Street C East Loop 32,000 New Lease Broker's Risk 155 N. Wacker Drive A+ West Loop 28,000 New Lease Accretive Health 231 S. LaSalle Street B Central Loop 28,000 Expansion IntercontinentalExchange 353 N. Clark Street A+ River North 28,000 Renewal/Expansion Claro Group 321 N. Clark Street A River North 26,000 New Lease Sapient Corporation 30 W. Monroe Street B Central Loop 25,000 Renewal/Expansion Momentum Worldwide 444 N. Michigan Avenue B North Michigan Ave. 23,000 Renewal/Expansion AmWINS Brokerage of Illinois 10 S. LaSalle Street B Central Loop 23,000 Sublease Barrett Offices 222 N. LaSalle Street B Central Loop 23,000 Sublease Golub Capital 150 S. Wacker Drive B Central Loop 22,000 Renewal/Expansion McCorkle Court Reports 200 N. LaSalle Street A Central Loop 20,000 Renewal/Expansion

Construction The lack of sizable, quality blocks of space available for lease has resulted in the potential for a new office tower development to launch. Several developers are actively marketing proposed office towers in hopes of finding anchor tenants to bring life back to West Loop projects that were tabled two years ago when lending froze. All discussions surrounding new development opportunities are focused on the West Loop because of its popularity with tenants, ease of access to public transportation, and historical success rate with being a springboard for new office towers. If a new development were to be launched, it is likely to reach completion in the 2015 to 2017 timeframe.

The River Point project at 444 W. Lake Street has been resurrected by Hines, albeit on a smaller lake street scale, after plans for the development were scrapped in 2009 when Hines was unable to obtain financing due to the credit crisis despite significant pre-leasing. The tower would be planned in the 1.0-million-square-foot range. Additionally, Trammell Crow and InSite Real Estate are marketing a potential 1.0-million-square-foot development at 301 S. Wacker Drive. While a property like 444 W. randolph street Lake Street or 301 S. Wacker Drive would require several large anchor tenants in order to launch, smaller projects that would only need one large tenant to obtain financing are also a consideration. 444 west lake street site The Alter Group and White Oak Realty Partners are marketing a 435,000-square-foot building at 625 W. Adams Street and Fifield is proposing a 460,000 square feet office tower at 601 W. Monroe Street. Additionally, Jupiter Realty is marketing a 350,000 square foot, 15-story office tower in the West Loop.

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L arge Blocks of Availability and Tenant Demand 9 Large blocks of space in the CBD are defined as those containing 100,000 square feet or greater on blocks of a contiguous and direct basis. During the third quarter, two blocks of space were removed from the CBD market, bring availability to 18 blocks of Class A and B space consisting of 3.3 million square feet. Class A space consisting of Smaller and mid-sized tenants still have an abundance of space options in the market. However, large 2,110,691 tenants are finding that the number of large blocks available for their requirements is quickly shrinking, square feet especially when factors such as asset quality, submarket desirability, and view characteristics are considered. Of the 18 blocks of available space, only nine of them reside within Class A properties. When dissected further, the lack of high-view, quality, and well-located space becomes even more evident. Only two spaces reside in the high rise portion of West Loop buildings which is typically the 4 most desired submarket due to proximity to commuter rails. Large tenants seeking the best space in blocks of the market are presented with very limited options compared to those that are willing to consider low West Loop rise space or second generation assets. Class A space consisting of Further, Colliers is currently tracking several tenants that are actively pursuing space in the market with a requirement of 200,000 square feet or greater. While these tenants could also consider 808,604 renewals at their existing locations, their space options on a relocation basis are very limited. Only square feet five spaces that could accommodate such a large requirement currently exist in the CBD on a contiguous and direct basis. 2 large block direct availabilities (100,000+ square feet) blocks of West Loop Building Class Size (SF) Floor Submarket High Rise 200 E. Randolph Street A 380,158 66-77 East Loop Class A space 330 N. Wabash Avenue A 371,945 37-47 River North consisting of 500 W. Monroe Street A 369,207 30-44 West Loop 668,721 233 S. Wacker Drive A 299,514 48-54 West Loop square feet 130 E. Randolph Street A 185,042 30-37 East Loop 111 W. Illinois Street A 141,503 5-10 River North 227 W. Monroe Street A 139,883 5-8 West Loop 161 N. Clark Street A 116,964 2-5 Central Loop 500 W. Monroe Street A 106,475 21-24 West Loop 303 E. Wacker Drive B 241,206 13-20 East Loop 55 E. Monroe Street B 175,263 38-41 East Loop 333 S. Wabash Avenue B 136,500 26-30 East Loop 225 N. Michigan Avenue B 120,446 14-15 East Loop 33 S. State Street B 117,207 5-6 East Loop 101 N. Wacker Drive B 106,732 20-23 West Loop 350 W. Mart Center B 106,168 6-7 River North 300 S. Riverside Plaza B 105,183 7-8 West Loop 111 W. Jackson Boulevard B 102,943 4-8 Central Loop 11 S. LaSalle Street C 159,675 1-14 Central Loop 401 S. State Street C 110,898 4-6 East Loop

Colliers International | p. 5 Net Absorption & Vacancy Central Business District

4,000,000 3,695,540 18.0% 3,468,456 16.0% 3,000,000 16.00% 15.90% 15.60% 14.0% 14.40% 2,000,000 12.0% Vacanc 11.90% 11.90% 1,000,000 582,266 10.0% 392,470

0 8.0% y

-218,477 6.0% Square Footage -1,000,000 4.0% -2,000,000 2.0% -2,204,759 -3,000,000 0.0% 2006 2007 2008 2009 2010 2011 YTD

Source: Costar; Colliers International Research

Submarket Vacancy Rates 2009 - 2011

20.00% 18.0% 17.6% 17.4% 17.5% 17.1% 17.1% 15.7% 15.2% 14.8% 14.9% 14.7% 15.00% 14.3% 14.3% 13.1%

y 10.2% 10.00% Vacanc

5.00%

0.00% Central Loop East Loop North Michigan Ave. River North West Loop

2009 2010 2011

Source: Costar; Colliers International Research research report | third quarter 2011 | downtown chicago | office

Rents and Concessions The average direct gross asking rental rate remained steady at $31.32 per square foot Asking Gross Face Rate CENTRAL BUSINESS DISTRICT Central Business District -Asking Gross Face Rates during the third quarter, representing a very $45.00 minimal decrease from the $31.35 per square foot rate posted in the prior quarter. The current $40.00 Class A Average Class A asking rental rate resides at $37.34 per $35.00 square foot, while Class B asking rates average Class B $29.33 per square foot. $30.00 ClassC $25.00

Despite a market that is still relatively soft, rental $20.00 rates are remarkably holding and in some cases increasing, especially in assets that have been $15.00 successful in leasing space. Additionally, the $10.00 highest quality assets in the CBD boast the $5.00 lowest vacancy rates and those landlords have not been competing as aggressively for tenants. $0.00 2006 2007 2008 2009 2010 2011 The average rate is expected to hold or decline Source: Costar; Colliers International Research slightly through the balance of the year. However, as several larger landlords push to raise rates, other landlords are likely to follow suit. If a developer is successful in launching a new office tower development, the rental rates required for that asset will be at a premium, thereby putting upward further pressure on rates across the CBD.

From a tenant’s perspective, leasing concessions such as free rent and tenant improvement allowances remain fairly strong, particularly for second generation Class A space and lower quality assets. Landlords with capital hold an advantage over those that are cash constrained. capital markets The momentum that was experienced in the investment sales market during the first two quarters of the year sputtered a bit during the third quarter. Amidst a stalling U.S. economy, solvency concerns in Europe, and volatile global financial markets, there was an overall reduction in the optimism that had been experienced during the first part of the year, leading to a slowdown in capital markets. Although several Chicago CBD transactions managed to close during the third quarter, a decrease in enthusiasm was evident as several assets were removed from the market due to pricing and financing concerns.

During the end of 2010 into early-2011, cash-laden investors began to focus on the acquisition of well-located, stable core assets and value-add opportunities, giving renewed impetus to an investment sales market that had been dormant for nearly two years. In the wake of these transactions, properties of varying quality were added to the market in the second and third quarter of the year, appealing to many investors seeking enhanced yields compared to other gateway markets. However, as the third quarter ended with increased volatility in global economic conditions, it remains to be seen if capital will retreat to the sidelines to wait out this most recent wave of uncertainty.

It is expected that the slowdown experienced in the CMBS markets during the third quarter will persist for the balance of the year. And while more conventional financing options exist today than they did in 2008 and 2009, banks remain unenthusiastic about lending, with many still trying to offload troubled real estate loans and managing pressure by regulators to reduce their exposure to real estate. As evidenced by third quarter results, the recovery in the fragile investment sales market is likely to mirror that of our economic recovery, bumpy yet slowly trending in a positive direction.

The most noteworthy sales during the third quarter included CommonWealth REIT’s purchase of 600 W. Chicago Avenue for $390 million ($248 per square foot). The asset, located in River North, is home to the ever-expanding online coupon company, Groupon. Three First National Plaza, 70 W. Madison Street, also traded during the quarter, selling for $344 million ($241 per square foot) from Hines to the Korean Teacher’s Credit Union. In the West Loop, 200 W. Madison Street was sold by Pearlmark and Tishman Speyer to MEPT for $218 million ($235 per square foot). Lastly, the iconic Wrigley building at 400-410 N. Michigan Avenue was sold to a joint venture composed of Zeller Realty, BDT Capital, and the owners of Groupon for $33 million ($71 per square foot), a price reflective of high vacancies and the need for extensive base building renovations.

600 w. chicago avenue

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Investment Sales Activity 2006 -201In1 vestment Sales Activity 2006 - 2011

70

60 60 53 50

40

30 Number of Sales 20 15 13 15 10 3 0 2006 2007 2008 2009 2010 2011 YTD

Class A Class B Class C

Source: Costar; Colliers International Research

chicago cbd sales activity - third QUARTER 2011 New Constructionv Deliveries Sub- 2000 -S2010tatus Address Market Class Size (SF) Sale Price Price/SF Seller Buyer

NM 200 N. LaSalle Street CL A 645,170 TBD TBD Younan Properties TBD 4,000,000 3,652,913 NM 500 N. Michigan Ave. NM B 322,443 TBD TBD Zeller Realty Group TBD 3,500,000

FS 3,000,000233 S. Wacker Drive WL A 3,781,045 $1,500,000,000 $396.72 American Landmark Properties; TBD

FS 2,500,00032 W. Randolph Street CL C 226,666 $19,500,000 $86.03 David & Barbara Kalish TBD 1,892,4601,897,981 FS 2,000,000400 S. Jefferson1,745,968S treet WL C 304,000 TBD TBD KBK II Partnership TBD 1,504,364 1,500,000 1,331,436 FSSquare Footage 311 S. Wacker Drive WL A 1,281,000 $390,000,000 $304.45 Shorenstein/Fremont Group TBD 933,710 1,000,000 782,400 665,000 FS 350 N. Orleans Street RN B 479,001,208,0000 TBD TBD Vornado Realty Trust TBD 500,000 0 000 FS 1410 W. Jackson Blvd. CL B 1,400,000 TBD TBD CME Group TBD 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 20122013

FS 200 Source:W. Jackson Costar; Blvd. Colliers InternationalWL ResearchB 476,711 TBD TBD Apollo Investment TBD

UC 22 W. Washington Street CL A 439,434 SF $182,000,000 $414.17 BlackRock/Golub & Co. Prudential Real Estate Investors

UC 111 E. Wacker Drive EL B 1,002,950 $151,000,000 $150.56 Parkway Properties CommonWealth REIT

UC 55 W. Monroe Street CL B 807,822 $140,000,000 $173.31 LaSalle Investment Management Hearn Co.

1 N. Wacker Drive UC WL A+ 1,340,000 $620,000,000 $462.69 Hines (Selling 50% Stake) Irvine Co. (50% Stake)

UC 35 W. Wacker Drive CL A 1,118,042 $400,300,000 $358.04 Piedmont Office Realty Trust UBS Realty

Zeller Realty, Brad Keywell & Sold 400-410 N. Michigan NM B 460,000 $33,000,000 $71.74 William Wrigley & Co. Eric Lefofsky & BDT Capital

Sold 212 W. Van Buren Street WL C 37,198 $1,413,500 $38.00 RiverSource Investments Marc Realty

Sold 600 W. Chicago Avenue RN B 1,571,386 $390,000,000 $248.19 600 W. Chicago Associates (David Commonwealth REIT

GAW Capital Partners & Korean Sold 70 W. Madison Street CL A 1,429,804 $343,995,500 $240.59 Hines Federation of Community Credit Cooperatives

Multi-Employer Property Trust & Sold 200 W. Madison Street WL B 928,000 $217,500,000 $234.38 Pearlmark/Tishman Speyer New Tower Trust Company

CL = Central Loop EL = East Loop NM = North Michigan Avenue RN = River North WL = West Loop FS = For sale NM = New to Market UC = Under Contract

Colliers International | p. 7 research report | third quarter 2011 | downtown chicago | office

Central Loop As the second largest submarket in the Chicago CBD, the Central Loop has historically served as Chicago’s core financial district. Although this distinction does not remain as strong today, the submarket still remains home to several large financial institutions, banks and professional services firms. During the past two years, as economic conditions worsened and companies shed space at a rapid pace, the Central Loop was among the most negatively affected submarkets with vacancy surging from 8.9 percent in 2008 to a staggering 17.0 percent by the end of 2009. Over the last several quarters some level of stabilization has been achieved and the Central Loop as a whole has started to make a comeback. Sublease space market indicators that had been placed on the market over the last two years was absorbed by discount-seeking tenants and trading companies managed to help improve the submarket’s vacancy rate with several sizeable Central Loop expansions. 3Q10 3Q11 The Central Loop still remains largely divided by asset class with the Class A sector of the submarket Vacancy rate 14.6% 14.9% boasting a remarkably low 9.9 percent vacancy rate while its Class B and C counterparts continue to Absorption (sf) -113,368 -49,633 post above average vacancies, in the 19.0 and 16.0 percent range, respectively. Space efficiencies, floor plate design and amenity offerings are included amongst the reasons for the substantial spread Rents $30.58 $30.12 between occupancy levels in Class A and B assets. With many tenants in the market looking to “trade up” to higher quality space, the Central Loop’s predominantly Class B and C building makeup will likely Inventory 38,199,118 38,199,118 slow the pace of recovery for the submarket as a whole, especially relative to the West Loop, which contains twice the amount of Class A properties.

The robust growth experienced in the trading sector has seemingly receded for the time being. large blocks available Additionally, Bank of America is rumored to be disposing of additional space at 135 S. LaSalle Street. TOP 10 BY SQUARE FOOTAGE These two factors could contribute to reduced momentum on a short-term basis and demand is likely CLASS A CLASS B CLASS C to remain jagged until a more sustained recovery with steady job growth can be achieved. However, 11 S. LASALLE ST. 159,675 SF on a long-term basis, the Central Loop will remain the benefactor of tenants seeking a highly desirable Central Loop 161 N. CLARK ST. 116,964 SF location with favorable pricing. 111 W. JACKSON BLVD. 102,943 SF 1 N. DEARBORN ST. 97,261 SF The two largest lease transactions in the Central Loop during the 111 W. JACKSON BLVD. 83,612 SF 222 N. LASALLE ST. 78,974 SF third quarter were both subleases at 231 S. LaSalle Street, 200 N. LASALLE ST. 71,728 SF absorbing a large part of the excess space put on the market by 111 W. WASHINGTON ST. 71,718 SF Bank of America in 2009. kCura, a rapidly expanding software 120 S. LASALLE ST. 69,519 SF company, is doubling its space in a move to the building, where the 175 W. JACKSON BLVD. 68,539 SF company will occupy 76,000 square feet. The Northern Trust Company also expanded there, taking an additional 42,000 square feet of sublease space on top of the 207,000 square feet it agreed CLASS A CLASS B CLASS C to sublease at the end of 2010. East Loop 200 E. RANDOLPH ST. 380,158 SF 303 E. WACKER DR. 241,206 SF 130 E. RANDOLPH ST. 185,042 SF Investment sales activity was strong during the quarter with one 55 E. MONROE ST. 175,263 SF transaction closed and two under contract. Hines successfully 303 E. WACKER DR. 165,287 SF closed the sale of 70 W. Madison Street to a joint venture between 333 S. WABASH AVE. 136,500 SF GAW Capital Partners and the Korea Teachers Credit Union for 225 N. MICHIGAN AVE. 231 S LaSalle Street 120,446 SF $344 million ($241 per square foot). 35 W. Wacker Drive, currently 33 S. STATE ST. 117,207 SF owned by Piedmont Office Realty Trust, is under contract for $400 million ($358 per square foot) to 401 S. STATE ST. 110,898 SF 200 E. RANDOLPH ST. 95,103 SF UBS Realty. Lastly, the Hearn Company has agreed to purchase 55 W. Monroe Street from LaSalle Investment Management for $140 million ($173 per square foot).

CLASS A CLASS B CLASS C

North Mich 680 N. LAKE SHORE DR. 95,523 SF

455 N. CITYFRONT PLAZA DR. 90,207 SF

740 N. RUSH ST. 73,294 SF

980 N. MICHIGAN AVE. 62,384 SF

401 N. MICHIGAN AVE. 51,870 SF Colliers International | p. 8

CLASS A CLASS B CLASS C River North 330 N. WABASH AVE. 371,945 SF 350 W. MART CENTER 160,568 SF

111 W. ILLINOIS ST. 141,503 SF

600 W. CHICAGO AVE. 117,101 SF

350 W. MART CENTER 106,168 SF

330 N. WABASH AVE. 97,932 SF

321 N. CLARK ST. 61,431 SF

222 MERCHANDISE MART PLZ. 50,000 SF

CLASS A CLASS B CLASS C

500 W. MONROE ST. 369,207 SF West Loop 233 S. WACKER DR. 299,514 SF 225 W. RANDOLPH ST. 238,778 SF 227 W. MONROE ST. 139,883 SF 101 N. WACKER DR. 106,732 SF 500 W. MONROE ST. 106,475 SF 300 S. RIVERSIDE PLZ. 105,183 SF 500 W. MADISON ST. 92,924 SF 233 S. WACKER DR. 91,216 SF 1 S. WACKER DR. 86,658 SF research report | third quarter 2011 | downtown chicago | office Net Absorption & Vacancy Central Loop Submarket

Vacancy Net Ab1,50sorption0,000 & Vacancy 16.0% Central Loop Submarket Net Absorption & Va1,204,46can3 cy central loop Submarket 14.90% The overall vacancy rate in the Central Loop fell 14.60% 14.80% 14.0% 14.30% 1,500,000 16.0% 30 basis points during the quarter and now 1,000,000 1,204,463 12.0% 14.90% 14.60% 12.30% 14.80% 14.0% resides at 14.9 percent. All three building classes 14.30% 582,533 11.40% 1,000,000 10.0% experienced vacancy rate declines during the 500,000 12.0%

12.30% Vacancy quarter. However, a wide disparity exists 582,533 11.40% 10.0% 8.0% 500,000 113,149 between Class A properties which stand at 9.9 Vacancy 0 113,149 8.0% 6.0% percent vacancy and the Class B properties at -49,633

Square Footage 0 19.0 percent. -195,055 6.0% -49,633 4.0% Square Footage -500,000 -195,055 4.0% -500,000 2.0% Absorption -763,239 2.0% -1,000,000 -763,239 0.0% -1,000,000 2006 20072008 2009 2010 0.0%2011 YTD Net absorption ended the quarter at positive 2006 20072008 2009 2010 2011 YTD 109,661 square feet, the most positive quarterly Source: Costar; Colliers International Research Source: Costar; Colliers International Research result in the submarket since the second quarter of 2008. The submarket’s year-to-date net absorption currently totals negative 49,633 square feet.

CentralCentral Loop Loop -A sking-Asking Gross Gross Face RateFaces Rates Construction asking gross face rates central loop Submarket No new construction was delivered to the Central $45.00 $45.00 Loop during the third quarter. There are currently $40.00 Class A $40.00 Class A no office developments slated in the submarket. $35.00 Average Class B $30.$35.00 00 Average RENTS Class B $30.00 $25.00 Class C The average direct gross asking rate increased $20.$25.00 00 slightly to $30.12 per square foot from $29.97 Class C $15.00 per square foot in the prior quarter. This marks $20.00 $10.00 the third consecutive increase in the average $15.00 asking rental rate for the submarket. The average $5.00 $10.00 asking Class A rate currently resides at $36.83 $0.00 per square foot, while Class B rental rates $5.002006 2007 2008 2009 2010 2011 Source: Costar; Colliers International Research remained steady at $28.42 per square foot. $0.00 2006 2007 2008 2009 2010 2011

Source: Costar; Colliers International Research

Colliers International | p. 9 research report | third quarter 2011 | downtown chicago | office central loop Lease and Sales Activity

Lease Transactions - third QUARTER 2011

Tenant Address Class Deal Type Size (SF) kCura 231 S. LaSalle Street B Sublease 76,000 The Northern Trust Company 231 S. LaSalle Street B Sublease/Expansion 42,000 Administrative Office of the Illinois Courts 222 N. LaSalle Street B Renewal 40,000 Accretive Health 231 S. LaSalle Street B Expansion 28,000 Sapient Corporation 30 W. Monroe Street B Renewal/Expansion 25,000 AmWINS Brokerage of Illinois 10 S. LaSalle Street B Sublease 23,000 Barrett Offices 222 N. LaSalle Street B Sublease 23,000 Golub Capital 150 S. Wacker Drive B Renewal/Expansion 22,000 McCorkle Court Reports 200 N. LaSalle Street A Renewal/Expansion 20,000

70 w madison street

sales activity - third QUARTER 2011

Status Address Class Size (SF) Sale Price Price/SF Seller Buyer

nm 200 N. LaSalle Street A 645,170 TBD TBD Younan Properties TBD

fs 22 W. Washington Street A 439,434 $182,000,000 $414.17 BlackRock/Golub & Co. Prudential Real Estate Investors

uc 35 W. Wacker Drive A 1,118,042 $400,300,000 $358.04 Piedmont OfficeR ealty Trust UBS Realty

GAW Capital Partners & Korean Federation sold 70 W. Madison Street A 1,429,804 $343,995,500 $240.59 Hines of Community Credit Cooperatives

fs 141 W. Jackson Blvd. B 1,400,000 TBD TBD CME Group TBD

uc 55 W. Monroe Street B 807,822 $140,000,000 $173.31 LaSalle Investment Management Hearn Co.

fs 32 W. Randolph Street C 226,666 $19,500,000 $86.03 David & Barbara Kalish TBD

FS = For sale NM = New to Market UC = Under Contract

Colliers International | p. 10 research report | third quarter 2011 | downtown chicago | office

East Loop

Although the East Loop is known as a less traditional submarket with a more diverse tenant base, it still maintains appeal to many corporate particularly those seeking reduced pricing relative to space options in the Central and West Loop.

Numerous universities, advertising firms and not-for-profit organizations reside within the East Loop. Additionally, the East Loop is highly appealing to younger employees that often commute from within city limits. These workers enjoy the work-life balance offered by the East Loop due its proximity to market indicators Millennium Park and a growing retail and entertainment presence. Prior to the economic downturn, East Loop several East Loop owners converted all or part of their office towers into residential condominiums CLASS A3Q10 CLASS B CLASS3Q11 C in response to a booming residential market. While the market for condo sales is no longer thriving, 11 S. LASALLE ST. 159,675 SF the conversion of these units into residential condos helped breathe new life into several antiquated Central Loop 161Va N.c CLARKanc yST r. ate 17.9%116,964 SF 17.6% buildings, bringing increased vitality to the submarket as a whole. 111 W. JACKSON BLVD. 102,943 SF Absorption (sf) -97,912 -16,373 1 N. DEARBORN ST. 97,261 SF Although the East Loop has experienced negative demand and increasing vacancies throughout the 111 W. JACKSON BLVD. 83,612 SF Rents $31.48 $29.75 economic downturn, landlords have managed to retain numerous large tenants that were considering 222 N. LASALLE ST. 78,974 SF 200 N. LASALLE ST. 71,728 SF relocations during the last two years, thereby sparing the submarket from further attrition. During Inventory 25,762,602 25,762,602 111 W. WASHINGTON ST. 71,718 SF the third quarter, Integrys Energy Group, the parent company of People’s Gas, signed a lease for 120 S. LASALLE ST. 69,519 SF 150,000 square feet to relocate from 130 E. Randolph Street to 200 E. Randolph Street when its 175 W. JACKSON BLVD. 68,539 SF current lease expires in 2014. Although this transaction involves a relocation to another building, the large blocks available company will still remain within the East Loop. Also during the quarter, Edelman announced its long- TOP 10 BY SQUARE FOOTAGE term renewal for 178,000 square feet at 200 E. Randolph Street, representing an expansion by over CLASS A CLASS B CLASS C 25 percent for the public relations firm. East Loop 200 E. RANDOLPH ST. 380,158 SF 303 E. WACKER DR. 241,206 SF The East Loop currently possesses nine contiguous blocks of space greater than 100,000 square feet 130 E. RANDOLPH ST. 185,042 SF 55 E. MONROE ST. 175,263 SF available for lease. The disposition of these large blocks will present a challenge to the East Loop in 303 E. WACKER DR. 165,287 SF coming quarters. Landlords are likely to focus efforts on attracting tenants from neighboring North 333 S. WABASH AVE. 136,500 SF Michigan Avenue and River North in addition to trying to recruit tenants from the suburbs to attempt 225 N. MICHIGAN AVE. 120,446 SF backfilling these large blocks. Further lengthening the submarket’s recovery time is the anticipated 33 S. STATE ST. 117,207 SF relocation of Groupon from 303 E. Wacker Drive in mid-2012. The company occupies over 225,000 401 S. STATE ST. 110,898 SF square feet in the building on a short-term basis and has announced it will be vacating the space upon 200 E. RANDOLPH ST. 95,103 SF expiration.

During the third quarter, CommonWealth REIT, the CLASS A CLASS B CLASS C recent purchaser of 233 N. Michigan Avenue, agreed North Mich 680 N. LAKE SHORE DR. 95,523 SF to purchase 111 E. Wacker Drive for $151 million ($151 455 N. CITYFRONT PLAZA DR. 90,207 SF per square foot) from Parkway Properties.

740 N. RUSH ST. 73,294 SF

980 N. MICHIGAN AVE. 62,384 SF

401 N. MICHIGAN AVE. 51,870 SF

CLASS A CLASS B CLASS C

330 N. WABASH AVE. 371,945 SF River North 233 n michigan avenue 111 e wacker drive 350 W. MART CENTER 160,568 SF

111 W. ILLINOIS ST. 141,503 SF

600 W. CHICAGO AVE. 117,101 SF

350 W. MART CENTER 106,168 SF

330 N. WABASH AVE. 97,932 SF

321 N. CLARK ST. 61,431 SF

222 MERCHANDISE MART PLZ. 50,000 SF Colliers International | p. 11

CLASS A CLASS B CLASS C

500 W. MONROE ST. 369,207 SF West Loop 233 S. WACKER DR. 299,514 SF 225 W. RANDOLPH ST. 238,778 SF 227 W. MONROE ST. 139,883 SF 101 N. WACKER DR. 106,732 SF 500 W. MONROE ST. 106,475 SF 300 S. RIVERSIDE PLZ. 105,183 SF 500 W. MADISON ST. 92,924 SF 233 S. WACKER DR. 91,216 SF 1 S. WACKER DR. 86,658 SF Net Absorption & Vacancy research report | third quarter 2011 | downtown chicago | office East Loop Submarket

1,000,000 Net Absorption & Vacancy 20.0% Vacancy East Loop Submarket Net Absorption & Vacan18c.0%y east loop Submarket 558,304 593,580 18.20% The overall vacancy rate in the East Loop 17.60% 17.60% 500,000 16.0% 1,000,000 20.0% decreased slightly15.60% during the239,479 quarter to 17.6 14.0% 14.70% 18.0% percent from 17.8 percent in the prior quarter. 558,304 593,580 Vacanc 18.20% 17.60% 17.60% 0 500,000 12.0% 16.0% Second to the River North submarket, the East12.30% -9,560 -16,373 15.60% 239,479

10.0% y Loop has the highest sublease rate in the CBD at 14.70% 14.0% Vacanc 2.6 percent.-500,000 0 8.0% 12.0% Square Footage 12.30% -9,560 -16,373 6.0%

10.0% y

-1,000,000 -500,000 4.0% 8.0% Absorption Square Footage 2.0% 6.0% Net absorption ended the quarter at positive -1,230,984 -1,500,000 -1,000,000 0.0% 4.0% 44,878 square feet,2006 bringing the2007 year-to-date2008 2009 20102011 YTD 2.0% total to negative 16,373 square feet. Both Class A -1,230,984 Source: Costar; Colliers International Research and B properties reported positive absorption -1,500,000 0.0% 2006 2007 2008 2009 20102011 YTD with 40,520 square feet and 22,756 square feet, Source: Costar; Colliers International Research respectively.

East Loop Asking Gross Face Rates asking gross face rates east loop Submarket Construction East Loop Asking Gross Face Rates $45.00 No new construction was delivered to the East Class A Loop during the third quarter. There are $40.00 $45.00 currently no office developments planned in the Class A $35.00 $40.00 submarket. Average Class B $30.00 $35.00 AvReragentse Class B $25.00 $30.00 ClassC The average direct gross asking rate increased $20.00 $25.00 ClassC slightly to $29.75 per square foot from $29.64 $15.00 $20.00 per square foot in the prior quarter. Class A

$10.00 $15.00 rental rates currently reside at $35.79 per square foot, while Class B rates average $29.60 per $5.00 $10.00 square foot. $5.00 $0.00 2006 2007 2008 2009 2010 2011 $0.00 Source: Costar; Colliers International Research 2006 2007 2008 2009 2010 2011 Source: Costar; Colliers International Research

Lease & Sales Activity

Lease Transactions - third QUARTER 2011

Tenant Address Class Deal Type Size (SF) Edelman 200 E. Randolph Street A Renewal/Expansion 178,000 Integrys 200 E. Randolph Street A New Lease 150,000 Skidmore Owings & Merrill 224 S. Michigan Avenue B Renewal/Expansion 69,000 OWP&P Cannon Design 205-225 N. Michigan Ave. B New Lease 61,000 American Cancer Society 225 N. Michigan Avenue B Renewal 34,000 Youth Connection Charter School 17-25 N. State Street C New Lease 32,000

200 e. randolph street 111 e. wacker drive

sales activity - second QUARTER 2011

Status Address Class Size (SF) Sale Price Price/SF Seller Buyer uc 111 E. Wacker B 1,002,950 SF $151,000,000 $150.56/SF Parkway Properties CommonWealth REIT UC = Under Contract

Colliers International | p. 12 research report | third quarter 2011 | downtown chicago | office

North Michigan Avenue

CLASS A CLASS B CLASS C North Michigan Avenue is renowned for its prominent retail sector. 11 S. LASALLE ST. 159,675 SF Mixed within the heavy retail environment are hotels, office, medical, Central Loop 161 N. CLARK ST. 116,964 SF 111 W. JACKSON BLVD. 102,943 SF residential and entertainment venues. This submarket is highly diverse 1 N. DEARBORN ST. 97,261 SF 111 W. JACKSON BLVD. 83,612 SF and has the smallest amount of office space compared to the other 222 N. LASALLE ST. 78,974 SF CBD submarkets. 200 N. LASALLE ST. 71,728 SF 111 W. WASHINGTON ST. 71,718 SF Conventionally, office users in North Michigan Avenue tend to be boutique companies. However, with 120 S. LASALLE ST. 69,519 SF the opening of Children’s Memorial Hospital in 2012 and the presence of Northwestern Memorial market175 W. JACKSON indi BLVDc. ators 68,539 SF Hospital, the submarket is becoming increasingly more attractive to medical-related tenants desiring North Michigan Avenue a location near the hospitals. Tenants located in the North Michigan Avenue area have historically remained loyal to their submarket, which generates relatively stable vacancy rates. CLASS A CLASS B CLASS C 3Q10 2011 200 E. RANDOLPH ST. 380,158 SF East Loop The purchase of the historic Wrigley Building located at 400-410 N. Michigan Avenue garnered Va303c E.an WACKERcy r ateDR. 12.9% 241,206 SF14.3% 130 E. RANDOLPH ST. 185,042 SF significant attention during the quarter. Groupon co-owners Brad Keywell and Eric Lefkofsky Absorption55 E. MONROE (sf) ST. -303,133175,263 SF -101,006 ,partnered with Zeller Realty Group to purchase the iconic building for approximately $33 million ($71 303 E. WACKER DR. 165,287 SF per square foot), a price that reflects an inflated vacancy rate and the need for extensive base building Rents $35.00 $30.82 333 S. WABASH AVE. 136,500 SF renovations. The unique ownership could result in a fresh tenant base for the Wrigley Building 225 N. MICHIGAN AVE. 120,446 SF Inventory 12,865,137 12,865,137 consisting of trendy start-up and technology companies. These entrepreneurial companies are 33 S. STATE ST. 117,207 SF attractive to a young, professional and urban-centric workforce. Also during the quarter, Zeller Realty 401 S. STATE ST. 110,898 SF 200 E. RANDOLPH ST. 95,103 SF Group placed 500 N. Michigan Avenue on the market.

Although the North Michigan Avenue submarket posted the healthiest vacancy rate in the CBD, the large blocks available TOP 10 BY SQUARE CLASSFOOTAGE A CLASS B CLASS C current rate of 14.3 percent is a 10-year historical high for the submarket. With its diverse tenant composition, North Michigan Avenue was initially sheltered from the economic downturn. However North Mich 680 N. LAKE SHORE DR. 95,523 SF in recent quarters, the submarket’s vacancy rate has begun to progressively increase as the short- 455 N. CITYFRONT PLAZA DR. 90,207 SF term direction of the economy remains in question. The largest lease transaction in North Michigan 740 N. RUSH ST. 73,294 SF Avenue during the third quarter was Momentum Worldwide’s 23,000-square-foot renewal and

980 N. MICHIGAN AVE. 62,384 SF expansion at 444 N. Michigan Avenue. Until economic indicators point to a sustained recovery,

401 N. MICHIGAN AVE. 51,870 SF vacancy rates are expected to remain elevated in the submarket. A lack of modern inventory combined with its peripheral location will likely translate to a slower recovery.

Vacancy NetN etAbsorption Absorption & VacancyCLASS A & CLASS Va Bcan CLASSc Cy North Michigan Avenue Submarket North Michigan Avenue Submarket The overall vacancy rate for North Michigan River North 330 N. WABASH AVE. 371,945 SF Avenue increased slightly during the third quarter 350 W.400, MART000 CENTER 160,568 SF 16.0% to 14.3 percent, up from 13.9 percent in the prior 274,234 111300, W.00 ILLINOIS0 ST. 141,503 SF 14.0% 14.30% quarter. The submarket has posted seven 600 W.200, CHICAGO000 AVE.117,941 13.50% 117,101 SF 12.0% consecutive quarters of vacancy rate increases. 12.00% 350 W.100, MART000 CENTER 106,168 SF Although North Michigan Avenue’s vacancy has Vacanc 10.50% 10.0% 330 N. WABASH0 AVE. 97,932 9.90SF% 10.00% steadily increased, it still has the lowest overall 8.0% -21,868 y vacancy rate in the CBD. Vacancy is expected to -100,000321 N. CLARK ST. 61,431 SF -61,793 -101,006

Square Footage 6.0% remain around the current peak rate for several 222 MERCHANDISE-200,000 MART PLZ. 50,000 SF quarters due to sluggish leasing activity. 4.0% -300,000

-400,000 2.0% -387,499 Absorption -500,000 0.0% 2006 2007 200820092010 2011 YTD Total net absorption for the third quarter was Source: Costar; Colliers International Research CLASS A CLASS B CLASS C negative 55,853 square feet, bringing the year-to- date total to negative 101,006 square feet. Without 500 W. MONROE ST. 369,207 SF substantial job growth, it is expected that demand will remain stagnant for the submarket over the West Loop 233 S. WACKER DR. 299,514 SF 225 W. RANDOLPH ST. 238,778 SF next three months. However, as the opening of Children’s Memorial Hospital nears and Northwestern 227 W. MONROE ST. 139,883 SF Memorial Hospital continues its expansion in the submarket, demand for office space will begin to North101 MichiganN. WACKER DRAv. enue -A106,732sking SF Gross Face Rates increase. 500$50. W.00 MONROE ST. 106,475 SF 300 S. RIVERSIDE PLZ. $45.00 105,183 SF Class A 500 W. MADISON ST. 92,924 SF $40.00 Colliers International | p. 13 233 S. WACKER DR. 91,216 SF Average $35.1 S.00 WACKER DR. 86,658 SF

$30.00 Class B $25.00 Class C

$20.00

$15.00

$10.00

$5.00

$0.00 2006 2007 2008 2009 2010 2011 Source: Costar; Colliers International Research Net Absorption & Vacancy North Michigan Avenue Submarket

400,000 16.0%

274,234 300,000 14.0% 14.30% 200,000 117,941 13.50% 12.0% 12.00% 100,000 Vacanc 10.50% 10.0% 0 9.90% 10.00% 8.0%

-21,868 y -100,000 -61,793 -101,006

Square Footage 6.0% -200,000 4.0% -300,000

-400,000 2.0% -387,499 -500,000 0.0% 2006 2007 200820092010 2011 YTD

Source: Costar; Colliers International Research research report | third quarter 2011 | downtown chicago | office

Construction asking gross face rates North Michigan Avenue Submarket No new construction was delivered to North North Michigan Avenue -Asking Gross Face Rates Michigan Avenue during the third quarter. There $50.00 $45.00 are currently no office developments planned in Class A the submarket. $40.00 Average $35.00 Rents $30.00 The average direct gross asking rate decreased Class B $25.00 Class C $0.43 from the prior quarter to $30.82 per $20.00 square foot. The average asking Class A rate currently resides at $35.43 per square foot, $15.00 while Class B rates ended the quarter at $30.36 $10.00 per square foot. Class A average asking rates $5.00 recorded the largest decrease out of all CBD $0.00 submarkets and classes, falling by $0.49 per 2006 2007 2008 2009 2010 2011 square foot. Source: Costar; Colliers International Research

Lease & Sales Activity

Lease Transactions - third QUARTER 2011

Tenant Address Class Deal Type Size (SF) Momentum Worldwide 444 N. Michigan Avenue B Renewal/Expansion 23,000

wrigley building

sales activity - third QUARTER 2011

Status Address Class Size (SF) Sale Price Price/SF Seller Buyer

Zeller Realty, Brad 400-410 N. Michigan Sold B 460,000 SF $33,000,000 $71.74/SF William Wrigley & Co. Keywell & Eric Lefofsky (Wrigley Building) & BDT Capital

nm 500 N. Michigan Ave. B 322,443 SF TBD TBD Zeller Realty Group TBD

NM = New to Market

Colliers International | p. 14 CLASS A CLASS B CLASS C 11 S. LASALLE ST. 159,675 SF Central Loop 161 N. CLARK ST. 116,964 SF research report | third quarter 2011 | downtown chicago | office 111 W. JACKSON BLVD. 102,943 SF 1 N. DEARBORN ST. 97,261 SF 111 W. JACKSON BLVD. 83,612 SF 222 N. LASALLE ST. 78,974 SF 200 N. LASALLE ST. 71,728 SF River North 111 W. WASHINGTON ST. 71,718 SF 120 S. LASALLE ST. 69,519 SF The addition of two cutting-edge office developments in 2009 along 175 W. JACKSON BLVD. 68,539 SF with the recent growth experienced in the technology and software sector have transformed River North from a relatively quiet submarket CLASS A CLASS B CLASS C into a dynamic office environment comprised of loft-style properties East Loop 200 E. RANDOLPH ST. 380,158 SF 303 E. WACKER DR. 241,206 SF and modern skyscrapers capable of meeting the space needs of both 130 E. RANDOLPH ST. 185,042 SF 55 E. MONROE ST. 175,263 SF unconventional tenants and traditional office users. 303 E. WACKER DR. 165,287 SF The CBD’s third largest leasing transaction of the quarter occurred in River North as The American 333 S. WABASH AVE. 136,500 SF Bar Association renewed its lease and contracted to 201,000 square feet at 321 N. Clark Street. The market225 N. MICHIGAN indi AVE.cators 120,446 SF group contracted by one floor, reducing its space by 25,000 square feet as part of the lease River North33 S. STATE ST. 117,207 SF 401 S. STATE ST. 110,898 SF renegotiation. Also during the quarter, Ventas negotiated to take one floor of sublease space and one 200 E. RANDOLPH ST. 95,1033Q10 SF 3011 floor of direct space at 353 N. Clark Street. The company will occupy a total of 57,000 square feet when it relocates from 111 S. Wacker Drive in January of next year. Vacancy rate 15.1% 14.7%

Absorption (sf) CLASS318,513 A CLASS B82,926 CLASS C During the quarter, CommonWealth REIT closed on its purchase of the 1.6-million-square-foot building at 600 W. Chicago Avenue for $390 million ($248 per square foot). The building was North Mich 680 N. LAKE SHORE DR. 95,523 SF Rents $32.69 $33.35 purchased from David Werner, Victor Gerstein, and Jacob Gerstein, who acquired the property in 455 N. CITYFRONT PLAZA DR. 90,207 SF 2007 for $290 million. With an occupancy rate over 98 percent, the property has benefited from a Inventory 16,414,192 16,414,192 740 N. RUSH ST. 73,294 SF large reduction in vacancy over the last two years, as Groupon, one of its largest tenants, rapidly 980 N. MICHIGAN AVE. 62,384 SF absorbed much of the available space. The former Apparel Center at 350 North Orleans Street is on

401 N. MICHIGAN AVE. 51,870 SF the market for the second time this year. New York-based Vornado Realty Trust has decided to sell the property in an effort to streamline its portfolio. The 1.2-million-square-foot property is over large blocks available TOP 10 BY SQUARE FOOTAGE 96 percent leased.

CLASS A CLASS B CLASS C River North currently possesses the second largest contiguous block of space in the CBD with 371,945 River North 330 N. WABASH AVE. 371,945 SF square feet of space available at 330 N. Wabash. The space has been on the market since 2009 when 350 W. MART CENTER 160,568 SF law firm Jenner & Block vacated to relocate to the new office tower at 353 N. Clark Street. Large

111 W. ILLINOIS ST. 141,503 SF contiguous blocks of space are limited in the CBD and this could be a vital opportunity for River North to recruit another large noteworthy tenant. Regardless of this large availability, the submarket boasts 600 W. CHICAGO AVE. 117,101 SF the second lowest vacancy rate in the CBD and is expected to benefit from technology, social 350 W. MART CENTER 106,168 SF networking and innovative energy companies growing here. The creative nature of these companies 330 N. WABASH AVE. 97,932 SF fits well with the unique space options and distinctive office environment available in River North. 321 N. CLARK ST. 61,431 SF

222 MERCHANDISE MART PLZ. 50,000 SF

Vacancy NetN Abetsorption Absorption & Vacancy & Vacancy river north Submarket River North Submarket River North’s overall vacancy rate increased during the third quarter to 14.7 percent, up from 14.2 1,000,000 20.0% CLASS A CLASS B CLASS C 927,237 percent in the previous quarter. Despite this 900,000 18.0% 500 W. MONROE ST. 369,207 SF increase, the current vacancy rate is down 2.4 17.50% 800,000 16.0% West Loop 233 S. WACKER DR. 299,514 SF percent from the 17.0 percent rate posted at the 225 W. RANDOLPH ST. 15.20% 700,000 238,778 SF 14.70% 14.0% Vacancy end of 2009, after both new office towers delivered. 227 W. MONROE ST. 600,000 13.10% 139,883 SF 12.0% 101 N. WACKER DR. 106,732 SF 500,000 10.70% 10.0% 500 W. MONROE ST. 106,475 SF (% Absorption

400,000 8.0% ) 300 S. RIVERSIDE PLZ. 338,233 8.90% 105,183 SF 304,988

Square Footage 265,990 300,50000 W.0 MADISON ST. 92,924 SF 6.0% The quarter ended with negative 71,091 square feet 200,23300 S.0 WACKER DR. 91,216 SF 177,164 4.0% of net absorption, bringing the year-to-date total to 82,926 100,001 S.0 WACKER DR. 86,658 SF 2.0% positive 82,926 square feet for the submarket. The 0 0.0% negative absorption experienced during the quarter 2006 2007 2008 2009 2010 2011 YTD Source: Costar; Colliers International Research was largely due to the addition of sublease space to the market. In the last eight quarters, absorption of direct space has been positive.

Colliers International | p. 15

River North -Asking Gross Face Rates

$45.00

$40.00 Class A

$35.00

Average $30.00 Class B

$25.00 ClassC $20.00

$15.00

$10.00

$5.00

$0.00 2006 2007 2008 2009 2010 2011

Source: Costar; Colliers International Research Net Absorption & Vacancy River North Submarket

1,000,000 20.0% 927,237 900,000 18.0%

17.50% 800,000 16.0%

15.20% 700,000 14.70% 14.0% Vacancy 600,000 13.10% 12.0%

500,000 10.70% 10.0% (%

400,000 338,233 8.90% 8.0% ) 304,988

Square Footage 300,000 265,990 6.0%

200,000 177,164 4.0% 82,926 100,000 2.0%

0 0.0% 2006 2007 2008 2009 2010 2011 YTD Source: Costar; Colliers International Research

research report | third quarter 2011 | downtown chicago | office

Construction askingRiver North gross-Asking Gross fa Facece Rateratess river north Submarket No new construction was delivered to River North during the third quarter. There are $45.00 currently no office developments planned in the $40.00 Class A submarket. $35.00

Average Rents $30.00 Class B $25.00 The average direct gross asking rate decreased ClassC slightly to $33.35 per square foot from $33.67 $20.00 per square foot in the prior quarter. The average $15.00 asking Class A rate currently resides at $38.68 per square foot, while Class B rates averaged $10.00

$27.68 per square foot gross. $5.00

$0.00 2006 2007 2008 2009 2010 2011

Source: Costar; Colliers International Research

Lease & Sales Activity

Lease Transactions - third QUARTER 2011

Tenant Address Class Deal Type Size (SF) American Bar Association 321 N. Clark Street A Renewal/Contraction 201,000

Ventas 353 N. Clark Street A+ New Lease/Sublease 57,000

IntercontinentalExchange 353 N. Clark Street A+ Renewal/Expansion 28,000

Claro Group 321 N. Clark Street A New Lease 26,000

353 N. Clark Street

600 w chicago avenue

sales activity - third QUARTER 2011

Status Address Class Size (SF) Sale Price Price/SF Seller Buyer

Fs 350 N. Orleans B 1,208,000 TBD TBD Vornado Realty Trust TBD

600 W. Chicago Associates (David SOLD 600 W. Chicago B 1,571,386 $390,000,000 $248.19 Commonwealth REIT Werner, Jacob & Victor Gerstein)

FS = For Sale

Colliers International | p. 16 CLASS A CLASS B CLASS C 11 S. LASALLE ST. 159,675 SF Central Loop 161 N. CLARK ST. 116,964 SF 111 W. JACKSON BLVD. 102,943 SF 1 N. DEARBORN ST. 97,261 SF 111 W. JACKSON BLVD. 83,612 SF 222 N. LASALLE ST. 78,974 SF 200 N. LASALLE ST. 71,728 SF 111 W. WASHINGTON ST. 71,718 SF 120 S. LASALLE ST. 69,519 SF 175 W. JACKSON BLVD. 68,539 SF research report | third quarter 2011 | downtown chicago | office

CLASS A CLASS B CLASS C East Loop 200 E. RANDOLPH ST. 380,158 SF 303 E. WACKER DR. 241,206 SF 130 E. RANDOLPH ST. 185,042 SF West Loop 55 E. MONROE ST. 175,263 SF 303 E. WACKER DR. 165,287 SF With six consecutive quarters of positive net absorption, the West 333 S. WABASH AVE. 136,500 SF 225 N. MICHIGAN AVE. 120,446 SF Loop continues to outperform all other submarkets in terms of its 33 S. STATE ST. 117,207 SF 401 S. STATE ST. 110,898 SF pace of recovery, giving further credence to its reputation as one of 200 E. RANDOLPH ST. 95,103 SF the most highly desired locations in the CBD due to its substantial Class A inventory and proximity to commuter rail lines.

CLASS A CLASS B CLASS C

North Mich 680 N. LAKE SHORE DR. 95,523 SF Despite its popularity, vacancy levels in the West Loop took an immediate hit during the economic

455 N. CITYFRONT PLAZA DR. 90,207 SF downturn, posting a dramatic increase of 660 basis points between the second quarter of 2008 and the first quarter of 2010. However, positive momentum over the past six quarters has allowed the 740 N. RUSH ST. 73,294 SF submarket to make significant headway towards returning to more normalized vacancy levels. The 980 N. MICHIGAN AVE. 62,384 SF West Loop vacancy rate currently resides at 15.7 percent, 2.6 percent below last year’s highest point 401 N. MICHIGAN AVE. 51,870 SF of 18.3 percent. Although the submarket still has ground to make up before reaching the 11.6 percent vacancy rate witnessed during pre-recession quarters, it appears to be stabilized and trending towards market indicators recovery.

West Loop CLASS A CLASS B CLASS C As the CBD’s largest and most active submarket, both landlords and tenants alike view the West Loop River North 330 N. WABASH AVE. 3Q10 3Q11371,945 SF as a leading indicator of the direction the entire CBD office market could be trending. Other submarkets 350 W. MART CENTER 160,568 SF in the CBD have been unable to sustain consistent positive absorption on a quarter-by-quarter basis, Vacancy rate 17.5% 15.7% 111 W. ILLINOIS ST. 141,503 SF yet the West Loop has now posted positive net absorption totaling a cumulative 1.2 million square feet A600bsorption W. CHICAGO AVE. (sf) -183,046117,101 SF 666,352 over the last six quarters. This trend may serve as a gauge of what’s to come for other submarkets 350 W. MART CENTER 106,168 SF once a more sustained economic recovery is underway. Rents $32.83 $32.86 330 N. WABASH AVE. 97,932 SF As 2011 draws to a close, it is anticipated that the submarket will continue to experience positive 321 IN.n vCLARKentory ST. 47,273,79461,431 SF 47,273,794 demand, albeit at a lower rate than that experienced prior to the downturn. The traditional professional 222 MERCHANDISE MART PLZ. 50,000 SF services firms that occupy space in the West Loop are likely to continue looking for space efficiencies through contractions. However, numerous large tenants, such as GE Capital at 500 W. Monroe Street large blocks available and Ernst & Young at 111 S. Wacker Drive, have recently announced substantial expansions that could TOP 10 BY SQUARE FOOTAGE help offset any negative demand that may be experienced in the coming quarters. Additionally, several suburban companies, such as Sara Lee, are actively evaluating potential relocation into the CBD. The CLASS A CLASS B CLASS C submarket stands to potentially benefit from these suburban relocations if West Loop landlords are 500 W. MONROE ST. 369,207 SF able to successfully recruit these large tenants. West Loop 233 S. WACKER DR. 299,514 SF 225 W. RANDOLPH ST. 238,778 SF Renewals dominated the West Loop’s leasing landscape during the third quarter as the top five leases 227 W. MONROE ST. 139,883 SF 101 N. WACKER DR. 106,732 SF were same-building transactions. The largest West Loop leasing transaction included 500 W. MONROE ST. 106,475 SF PricewaterhouseCoopers renewal of 279,000 square feet at 1 N. Wacker Drive. Additionally, 300 S. RIVERSIDE PLZ. 105,183 SF Fifth Third Bank renewed and expanded to 218,000 square feet at 222 S. Riverside Plaza. 500 W. MADISON ST. 92,924 SF 233 S. WACKER DR. 91,216 SF Recent discussions in the market surrounding potential new office developments in the West Loop 1 S. WACKER DR. 86,658 SF continue to gain traction. Although hesitations exist by tenants about developers’ ability to meet the financing and pre-leasing requirements to launch a new development, market characteristics seem to indicate a future need for large space options with modern amenities, high-tech finishes and enhanced infrastructure. The high-view, quality space sector of the West Loop market continues to become more constrained leaving large tenants with fewer options for relocation or expansion. While the West Loop currently has seven large blocks of space greater than 100,000 square feet, only two of those spaces are located within the high rise of Class A assets. Several developers are marketing new West Loop office towers, anticipating that the need for high-quality space will continue to be an issue for large tenants as the economy improves.

Colliers International | p. 17 research report | third quarter 2011 | downtown chicago | office

Vacancy Net Absorption & Vacancy NWeetst Loop Absorption Submarket & Vacancy west loop Submarket During the third quarter, the overall vacancy rate in the West Loop declined further to 15.7 percent 2,500,000 18.0% 2,029,259 17.10% 17.10% from 16.2 percent in the prior quarter. For the 2,000,000 16.0% 1,639,111 15.70% 14.0% second quarter in a row, all three building classes 1,500,000 14.80%

12.90% 12.0%

posted decreases in vacancy during the quarter, Vacancy 1,000,000 11.90% 666,352 another sign of relative health in the submarket. 10.0% 500,000 Net Absorption & Vacancy 22,954 8.0% 0 Square Footage West Loop Submarket Absorption 6.0% -500,000 Positive 236,873 square feet of net absorption 2,500,000 -481,216 4.0% 18.0% 2,029,259 -1,000,000 17.10% 17.10% 2.0% 16.0% was reported during the quarter, bringing the 2,000,000 -983,216 1,639,111 15.70% year-to-date total for the submarket to positive -1,500,000 14.80% 0.0% 14.0% 1,500,0002006 2007 2008 2009 2010 2011 YTD

666,352 square feet. The West Loop remains the 12.90% 12.0% Source: Costar; Colliers International Research Vacancy 1,000,000 11.90% 666,352 strongest submarket in the CBD with over 1.2 10.0% million square feet of net absorption reported 500,000 22,954 8.0% 0 over the last six quarters combined. Square Footage 6.0% -500,000 -481,216 4.0% West LoopR ents-Asking Gross Face Rates Construction -1,000,000 2.0% $45.00 -983,216 The average-1,500,000 direct gross asking rate remained flat during the quarter at $32.86 per square0.0% No new construction was delivered to the West Loop 2006 2007 2008 Class2009 A 2010 2011 YTD $40.00 foot. Rental rate increases were posted in all three building classes in the West Loop. Class during the third quarter. To-date there are currently no Source: Costar; Colliers InternationalAv Researcherage $35.00 office developments slated in the submarket but A rates asking rates are currently at $38.01 per square foot gross while Class B rates reside discussions remain active about the potential for future$30. 00 at $30.19 per square foot. Class B deliveries in the 2015 to 2017 timeframe if a developer$25. 00 is able to recruit the anchor tenants required to launch asking gross face rates west loop Submarket $20.00 ClassC a new building. West Loop -Asking Gross Face Rates $15.00 $45.00

$10.00 $40.00 Class A Average $5.00 $35.00

$0.00 $30.00 Class B 2006 2007 2008 2009 2010 2011 $25.00 Source: Costar; Colliers International Research $20.00 ClassC

$15.00

$10.00

$5.00

$0.00 2006 2007 2008 2009 2010 2011

Source: Costar; Colliers International Research

Colliers International | p. 18 research report | third quarter 2011 | downtown chicago | office

Lease & Sales Activity

Lease Transactions - third QUARTER 2011

Tenant Address Class Deal Type Size (SF) PricewaterhouseCoopers 1 N. Wacker Drive A+ Renewal 279,000 Fifth Third Bank 222 S. Riverside Plaza B Renewal/Expansion 218,000 Acquity Group 500 W. Madison Street A Renewal/Expansion 65,000 Catholic Charities 641 W. Lake Street C Renewal 64,000 Paul Hastings 191 N. Wacker Drive A Renewal 53,000 Cushman & Wakefield 200 S. Wacker Drive B New Lease 40,000 bSwift 10 S. Riverside Plaza B New Lease 37,000 Banner & Witcoff 10 S. Wacker Drive A Renewal/Expansion 35,000 Performance Trust 500 W. Madison Street A Renewal/Expansion 32,000 Broker's Risk 155 N. Wacker Drive A+ New Lease 28,000

1 n wacker drive

sales activity - third QUARTER 2011

Status Address Class Size (SF) Sale Price Price/SF Seller Buyer

1 N. Wacker Drive uc A+ 1,340,000 $620,000,000 $462.69/SF Hines (Selling 50% Stake) Irvine Co. (50% Stake)

American Landmark fs 233 S. Wacker Drive A 3,781,045 $1,500,000,000 $396.72/SF Properties; The Chetrit Group, TBD LLC; The Moinian Group

fs 311 S. Wacker Drive A 1,281,000 $390,000,000 $304.45/SF Shorenstein/Fremont Group TBD

fs 200 W. Jackson Drive B 476,711 TBD TBD Apollo Investment TBD

Multi-Employer Property sold 200 W. Madison Drive B 928,000 $217,500,000 $234.38/SF Pearlmark/Tishman Speyer Trust & New Tower Trust Company

FS = For sale UC = Under Contract

Colliers International | p. 19 research report | third quarter 2011 | downtown chicago | office

second Quarter 2011 Office Market Statistics | colliers international standards (Includes all owner-occupied properties) vacancy Absorption RENTS Direct Sublease Total Net Asking Full Service Total Direct SF Sublease SF Vacancy Vacancy Total Vacancy Total Direct Net Total Sublease Absorption Net Absorption Average Direct Class Inventory SF Vacant Vacant Total Vacant SF Rate Rate Rate 2Q 2011 Absorption Net Absorption 2Q 2011 YTD SF Rent Per SF Central Loop Class A: 15,991,789 1,479,232 69,461 1,548,693 9.2% 0.4% 9.7% (5,229) 21,052 15,823 (88,001) $36.83 Class B: 22,633,128 3,050,247 357,028 3,407,275 13.5% 1.6% 15.1% 18,311 52,243 70,554 139,097 $28.42 Class C: 6,578,639 823,327 54,811 878,138 12.5% 0.8% 13.3% 24,040 8,120 32,160 (92,401) $20.29 Subtotal: 45,203,556 5,352,806 481,300 5,834,106 11.8% 1.1% 12.9% 37,122 81,415 118,537 (41,305) $30.12

East Loop Class A: 6,663,954 1,180,092 207,879 1,387,971 17.7% 3.1% 20.8% 36,903 3,617 40,520 113,075 $35.79 Class B: 12,761,683 1,966,917 165,651 2,132,568 15.4% 1.3% 16.7% 25,874 (3,118) 22,756 96,940 $29.60 Class C: 8,374,336 896,224 21,723 917,947 10.7% 0.3% 11.0% (13,148) 830 (12,318) 40,093 $23.13 Subtotal: 27,799,973 4,043,233 395,253 4,438,486 14.5% 1.4% 16.0% 49,629 1,329 50,958 250,108 $29.75

North Michigan Avenue Class A: 4,488,998 711,986 62,841 774,827 15.9% 1.4% 17.3% 4,044 13,384 17,428 702 $35.43 Class B: 7,617,849 730,005 53,094 783,099 9.6% 0.7% 10.3% (7,759) (7,597) (15,356) (54,976) $30.36 Class C: 3,554,438 355,902 0 355,902 10.0% 0.0% 10.0% (58,225) 2,142 (56,083) (37,477) $22.62 Subtotal: 15,661,285 1,797,893 115,935 1,913,828 11.5% 0.7% 12.2% (61,940) 7,929 (54,011) (91,751) $30.82

River North Class A: 5,117,181 1,259,648 138,206 1,397,854 24.6% 2.7% 27.3% (20,803) (60,119) -80,922 (56,767) $38.68 Class B: 9,837,520 483,330 344,623 827,953 4.9% 3.5% 8.4% 36,003 (30,132) 5,871 153,087 $27.68 Class C: 4,009,807 515,875 45,200 561,075 12.9% 1.1% 14.0% (13,907) 3,370 (10,537) 65,797 $20.77 Subtotal: 18,964,508 2,258,853 528,029 2,786,882 11.9% 2.8% 14.7% 1,293 (86,881) (85,588) 162,117 $33.35

West Loop Class A: 27,686,704 3,873,795 350,988 4,224,783 14.0% 1.3% 15.3% 52,451 (8,876) 43,575 254,511 $38.01 Class B: 17,648,497 2,207,542 98,060 2,305,602 12.5% 0.6% 13.1% 145,310 41,867 187,177 256,440 $30.19 Class C: 5,291,859 1,095,646 11,416 1,107,062 20.7% 0.2% 20.9% 61,154 (1,717) 59,437 118,323 $20.49 Subtotal: 50,627,060 7,176,983 460,464 7,637,447 14.2% 0.9% 15.1% 258,915 31,274 290,189 629,274 $32.86

CBD Total Class A: 59,948,626 8,504,753 829,375 9,334,128 14.2% 1.4% 15.6% 67,366 (30,942) 36,424 223,520 $37.34 Class B: 70,498,677 8,438,041 1,018,456 9,456,497 12.0% 1.4% 13.4% 217,739 53,263 271,002 590,588 $29.33 Class C: 27,809,079 3,686,974 133,150 3,820,124 13.3% 0.5% 13.7% (86) 12,745 12,659 94,335 $21.56 Subtotal: 158,256,382 20,629,768 1,980,981 22,610,749 13.0% 1.3% 14.3% 285,019 35,066 320,085 908,443 $31.32

The information contained in this report was provided by sources deemed to be reliable, however, no guarantee is made as to the accuracy or reliability. As new, corrected or updated information is obtained, it is incorporated into both current and historical data, which may invalidate comparison to previously issued reports.

Colliers International | p. 20 research report | third quarter 2011 | downtown chicago | office

THIRD Quarter 2011 Office Market Statistics | LOCAL standards (Includes competitve owner-occupied properties) vacancy Absorption RENTS Direct Sublease Total Net Asking Full Service Total Direct SF Sublease SF Vacancy Vacancy Total Vacancy Total Direct Net Total Sublease Absorption Net Absorption Average Direct Class Inventory SF Vacant Vacant Total Vacant SF Rate Rate Rate 3Q 2011 Absorption Net Absorption 2Q 2011 YTD SF Rent Per SF Central Loop Class A: 15,691,789 1,477,489 69,461 1,546,950 9.4% 0.4% 9.9% (5,229) 21,052 15,823 (88,683) $36.83 Class B: 17,870,235 3,045,821 357,028 3,402,849 17.0% 2.0% 19.0% 18,311 52,243 70,554 139,900 $28.42 Class C: 4,637,094 706,880 47,078 753,958 15.2% 1.0% 16.3% 24,068 (784) 23,284 (100,850) $20.29 Subtotal: 38,199,118 5,230,190 473,567 5,703,757 13.7% 1.2% 14.9% 37,150 72,511 109,661 (49,633) $30.12

East Loop Class A: 6,663,954 1,180,092 470,855 1,650,947 17.7% 7.1% 24.8% 36,903 3,617 40,520 (149,901) $35.79 Class B: 11,394,038 1,957,607 165,651 2,123,258 17.2% 1.5% 18.6% 25,874 (3,118) 22,756 106,250 $29.60 Class C: 7,704,610 749,151 21,723 770,874 9.7% 0.3% 10.0% (19,228) 830 (18,398) 27,278 $23.13 Subtotal: 25,762,602 3,886,850 658,229 4,545,079 15.1% 2.6% 17.6% 43,549 1,329 44,878 (16,373) $29.75

North Michigan Avenue Class A: 4,254,962 711,986 62,841 774,827 16.7% 1.5% 18.2% 4,044 13,384 17,428 702 $35.43 Class B: 5,810,410 703,239 53,094 756,333 12.1% 0.9% 13.0% (7,759) (7,597) (15,356) (59,341) $30.36 Class C: 2,799,765 310,183 0 310,183 11.1% 0.0% 11.1% (57,925) 0 (57,925) (42,367) $22.62 Subtotal: 12,865,137 1,725,408 115,935 1,841,343 13.4% 0.9% 14.3% (61,640) 5,787 (55,853) (101,006) $30.82

River North Class A: 5,117,181 1,259,648 138,206 1,397,854 24.6% 2.7% 27.3% (20,803) (60,119) -80,922 (56,767) $38.68 Class B: 8,982,871 425,412 341,123 766,535 4.7% 3.8% 8.5% 37,615 (30,132) 7,483 122,693 $27.68 Class C: 2,314,140 242,810 0 242,810 10.5% 0.0% 10.5% (1,022) 3,370 2,348 17,000 $20.77 Subtotal: 16,414,192 1,927,870 479,329 2,407,199 11.7% 2.9% 14.7% 15,790 (86,881) (71,091) 82,926 $33.35

West Loop Class A: 27,005,704 3,838,795 350,988 4,189,783 14.2% 1.3% 15.5% 52,451 (8,876) 43,575 252,651 $38.01 Class B: 16,038,767 2,266,391 91,856 2,358,247 14.1% 0.6% 14.7% 73,321 48,071 121,392 189,955 $30.19 Class C: 4,229,323 840,158 11,416 851,574 19.9% 0.3% 20.1% 73,623 (1,717) 71,906 223,746 $20.49 Subtotal: 47,273,794 6,945,344 454,260 7,399,604 14.7% 1.0% 15.7% 199,395 37,478 236,873 666,352 $32.86

CBD Total Class A: 58,733,590 8,468,010 1,092,351 9,560,361 14.4% 1.9% 16.3% 67,366 (30,942) 36,424 (41,998) $37.34 Class B: 60,096,321 8,398,470 1,008,752 9,407,222 14.0% 1.7% 15.7% 147,362 59,467 206,829 499,457 $29.33 Class C: 21,684,932 2,849,182 80,217 2,929,399 13.1% 0.4% 13.5% 19,516 1,699 21,215 124,807 $21.56 Subtotal: 140,514,843 19,715,662 2,181,320 21,896,982 14.0% 1.6% 15.6% 234,244 30,224 264,468 582,266 $31.32

The information contained in this report was provided by sources deemed to be reliable, however, no guarantee is made as to the accuracy or reliability. As new, corrected or updated information is obtained, it is incorporated into both current and historical data, which may invalidate comparison to previously issued reports.

Colliers International | p. 21 CLARK WILLOW

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