Mid-Year 2021 Office Market Report Downtown Chicago Contents

MID-YEAR 2021 OFFICE MARKET REPORT DOWNTOWN CHICAGO CONTENTS

Market Overview 4

Downtown Chicago Submarket Comparison Summary 6

Submarket Comparisons, Economic Indicators, 7 and Market Trends

Central Loop 8

East Loop 10

Fulton Market/River West 12

North Michigan Avenue 14

River North 16

South Loop 18

West Loop 20

Submarket Location Map 22

2 | BRADFORD ALLEN // TCN WORLDWIDE MID-YEAR 2021 MARKET REPORT | 3 RECORD-SETTING DIRECT AVAILABILITY AND VACANCY RATES RISE ACROSS CHICAGO’S CBD

At 2021’s midyear, Chicago’s Central Business District (CBD) office Elizabeth and the WPP Group (30,000 s.f.) at 333 N. Green, respectively. Q2/21 MARKET REPORT | 5 market endured yet another quarter of record-breaking declines in Additionally, Lactalis Heritage Dairy agreed to sublease a portion of occupancy. Quarter over quarter, the overall direct availability rate rose iManage’s space on the third floor within the Bank of America Tower from 19.19% to 19.48% , overall direct vacancy rose from 13.47% to (35,000 s.f). New subleases to hit the market during the second quarter 14.01% (highest on record for both), and overall gross asking rents rose included VelocityEHS’s 90,000 s.f. at theMart, PricewaterhouseCoopers’ from $40.78 p.s.f. to $41.13 p.s.f.1 70,000 s.f. at 1 N. Wacker, and McGraw Hill’s 50,000 s.f. at One Prudential Plaza. The first week of June revealed the beginnings of a return to normalcy. With over fifty percent of the metro vaccinated for Covid, mass transit OFFICE MARKET FORECASTS ridership increased, restaurants enjoyed diners in queues, and tenants started to tour for office space once again. Yet, less than one million According to a survey of local business leaders published in late May by square feet of leasing transactions were recorded during the second First Midwest Bank and Crain’s Chicago Business, 35.1% revealed they quarter, revealing a continued hesitancy in the market. Landlords expect their workforce to return to the office for 76% – 100% of the time maintained their firm stance on rental asking rates, yet generous — a 40% drop from their pre-pandemic recorded levels (see BACK TO beneficial occupancy, abatement, and tenant improvement packages WORK). The results of this study confirm our beliefs that the hybrid office effectively lowered them for both new deals and renewals. Kimberly Clark appears to be the working model for the near term. signed a new lease to occupy 87,000 s.f. at 1155 W. Fulton, once reserved The respondents stated they predicted their office footprints to remain for WeWork before it bought out its lease obligation last summer; and the same (61.7%), shrink (29.1%), or expand (9.2%), but gauging overall Ipsos exercised its termination option on 77,000 s.f. at 222 S. Riverside office space demand is more than ascertaining current organizations’ to backfill West Monroe Partners’ 60,000 s.f. at The Franklin it vacated future needs. Compared to a year ago, 64% said their businesses were last year. The positive momentum from midsize tenant move-ins — growing. With economic and employment growth on the rise, office space CMAP (37,000 s.f.) into the Old Post Office, Schiller DuCanto & Fleck demand should increase from businesses new to the market to allay some (27,000 s.f.) into 321 N. Clark, and Impact Networking (50,000 s.f.) of the uncertainty still present in the minds of office occupiers. Despite expanding into four floors at 150 N. Michigan — made up most of the some positive markers, tenant hesitation continues to persist, and the positive absorption during the second quarter. Unfortunately, by the end CBD’s office inventory is still projected to grow by four million s.f. over the of the second quarter, there were more move-outs than move-ins with next two years. We are left to believe office availability and vacancy will the market posting 963,729 s.f. of negative absorption for the second continue to rise while effective rental rates to dip over the remainder quarter, for a total of nearly two million s.f. of negative absorption of the year. year to date. DOWNTOWN CHICAGO By the end of 2021’s second quarter, two sizeable office buildings with Available and vacant subleases continue to plague the office market, as Google as their anchor tenant were sold or under contract. 1K Fulton sold the overall sublet availability (3.93%) and vacancy (1.73%) rates grew for $357 million (or $672 p.s.f.) and 210 N. Carpenter should fetch $169 Q2/21 SNAPSHOT by roughly 15 basis points each, quarter over quarter. At quarter’s end, million (or $617 p.s.f.). Continuing the prognosis set last year, we foresee both TikTok and the Farmers’ Business Network were in confirmed office acquisitions in the loop to be either value-priced or fully discussions to sublease from the tenants Mosaic (40,000 s.f.) at 320 N. occupied assets. 19.48% 14.01% $41.13 DIRECT AVAILABILITY DIRECT VACANCY DIRECT GROSS 1 Property data were compiled from CoStar with these parameters: existing and under-renovation office property type, excluding non-conforming and owner-occupied properties; and within Central, East, South and West Loop, N. Michigan Avenue, River North, and Fulton Market/River West. Absorption numbers are calculated using currently reported square footage in CoStar, standardized over RATE RATE ASKING RATE the last four quarters.

4 | BRADFORD ALLEN // TCN WORLDWIDE MID-YEARQ1/21 2021 MARKET REPORT | 5 DOWNTOWN CHICAGO SUBMARKET COMPARISON SUMMARY SUBMARKET COMPARISONS, ECONOMIC INDICATORS, AND MARKET TRENDS

25% GROSS DIRECT NET AVERAGE DIRECT SUBLET DIRECT SUBLET YTD SUBMARKET/ INVENTORY ASKING ABSORPTION BUILDING AVAILABILITY AVAILABILITY VACANCY VACANCY ABSORPTION ASSET CLASS (SF) RATE Q2/21 SIZE (SF) RATE (%) RATE (%) RATE (%) RATE (%) (SF) 20% (DIRECT) (SF)

15% CBD 154,324,330 358,894 19.48% 3.93% 14.01% 1.73% $41.14 (963,729) (1,922,516) Q2/21 DIRECT NET ABSORPTION (SF)

10% CLASS A 98,082,169 778,430 18.80% 3.81% 13.32% 1.47% $44.76 (738,745) (741,628)

CLASS B 49,324,449 230,488 20.85% 4.55% 15.02% 2.42% $36.26 (228,943) (981,543) 5% 200,000

CLASS C 6,917,712 76,863 19.34% 1.17% 16.48% 0.29% $28.88 3,959 (199,345) 0% 0

CENTRAL LOOP 36,168,429 548,007 22.73% 2.93% 15.12% 1.27% $41.16 (110,934) (500,213) (200,000)

CLASS A 21,453,016 794,556 22.49% 3.14% 12.93% 1.12% $44.27 (1,132) (81,562) DIRECT VACANCY RATE (%) (400,000)

CLASS B 13,922,916 464,097 23.16% 2.76% 18.13% 1.57% $37.19 (96,481) (381,437) (600,000)

CLASS C 792,497 88,055 21.64% 0.00% 21.36% 0.00% $26.34 (13,321) (37,214) (800,000) EAST LOOP 26,284,561 486,751 20.00% 2.92% 15.72% 1.85% $36.83 (141,159) (416,922) (1,000,000) Central East Fulton N. Michigan River South West CBD CBD CBD CBD CLASS A 17,563,529 1,033,149 20.07% 2.90% 15.37% 1.50% $38.57 (115,334) (198,310) Loop Loop Market/ Avenue North Loop Loop A B C All River West CLASS B 6,299,711 331,564 20.79% 3.88% 17.63% 3.38% $35.30 (52,187) (148,202) Direct Vacancy Rate (%) Absorption (SF) CLASS C 2,421,321 134,518 17.42% 0.58% 13.19% 0.40% $27.69 26,362 (70,410)

FULTON MARKET/ 7,325,563 110,993 27.03% 5.51% 24.99% 1.23% $42.01 32,402 440,481 RIVER WEST PROJECTED OFFICE SF CLASS A 4,287,691 252,217 30.24% 7.28% 30.24% 1.38% $47.78 58,039 540,019 GOING BACK TO THE OFFICE ProjectedREQUIREMENTS Office SF Requirements CLASS B 2,119,975 64,242 23.66% 4.31% 16.60% 1.45% $31.37 (30,594) (66,892) 9.2% CLASS C 917,897 57,369 19.83% 0.00% 19.83% 0.00% $30.21 4,957 (32,646) 76% - 100% of the time

N. MICHIGAN 11,988,238 352,595 12.73% 2.48% 9.59% 1.67% $42.10 295 (68,090) 51%% - 75% of the time AVENUE 29.1% CLASS A 7,742,784 595,599 11.56% 2.89% 8.58% 1.99% $45.37 (7,802) (61,079) 26% - 50% of the time 61.7%

CLASS B 4,245,454 202,164 14.86% 1.73% 11.43% 1.09% $37.34 8,097 (7,011) 10% - 25% of the time RIVER NORTH 16,892,739 168,927 17.41% 5.72% 12.18% 2.83% $39.22 4,441 (59,570) 0 10% 20% 30% 40% 50% 60% 70% 80%

CLASS A 5,572,135 619,126 14.62% 2.63% 13.31% 0.83% $42.72 20,368 91,924 Post-pandemic, Percentage Workfoce was in the office Pre-pandemic, Percentage Workfoce was in the office Expand Shrink No Change Expand ↑ Shrink ↓ No Change = Source: April 16-28, 2021 Survey ©2021 First Midwest Bank, April 16-28, 2021 Source: April 16-28, 2021 Survey ©2021 First Midwest Bank CLASS B 9,867,868 156,633 18.88% 8.19% 11.12% 4.33% $39.06 596 (122,620)

CLASS C 1,452,736 51,883 18.16% 0.75% 15.12% 0.27% $29.72 (16,523) (28,874) ILLINOIS JOB SECTORS WITH LEAST/MOST LOSSES Q2/21 ECONOMIC INDICATORS (IN THOUSANDS) SOUTH LOOP 1,604,160 133,680 53.72% 0.30% 18.90% 0.30% $25.24 (1,900) (153) Q2/20 Q2/21 MAY 2021 % CHANGE, YOY CLASS B 1,379,261 172,408 60.91% 0.35% 20.50% 0.35% $25.30 1,100 4,748 CONSUMER CONFIDENCE INDEX (CCI) 98.1 127.3 TOTAL NONFARM 4,439.80 7.30% CLASS C 224,899 56,225 9.64% 0.00% 9.07% 0.00% $22.97 (3,000) (4,901) LEISURE & HOSPITALITY 370.7 37.80% US, 4-WEEK MOVING AVERAGE (JUNE), 1,441,500 394,750 INITIAL UNEMPLOYMENT CLAIMS WEST LOOP 54,060,640 551,639 17.16% 4.75% 12.35% 1.75% $45.37 (746,874) (1,318,049) OTHER SERVICES 179.5 13.20%

US UNEMPLOYMENT 13.00% 5.50% TRADE, TRANSPORTATION & UTILITIES 916.6 9.10% CLASS A 41,463,014 964,256 17.09% 4.52% 11.79% 1.65% $47.86 (692,884) (1,032,620) MANUFACTURING 390.2 0.80% COOK COUNTY UNEMPLOYMENT 16.80% 8.70% CLASS B 11,489,264 287,232 16.68% 5.56% 13.55% 2.22% $38.38 (59,474) (260,129) INFORMATION 70.3 -2.60%

CLASS C 1,108,362 73,891 24.97% 5.04% 20.69% 0.59% $31.12 5,484 (25,300) PRIME RATE 3.25% 3.25% MINING & LOGGING 1.7 -5.60%

6 | BRADFORD ALLEN // TCN WORLDWIDE MID-YEAR 2021 MARKET REPORT | 7 Central Loop Sublet Availability (%) Quarter Over Quarter

3.15%

WACKER DRIVE 3.10%

3.05% WELLS 3.00% STATE

2.95%

2.90%

CENTRAL 2.85% CONGRESS PARKWAY

2.80% Q1/2021 Q2/2021

Central Loop Direct Vacancy (%), Quarter over Quarter LOOP 0% 5% 10% 15% 20% 25%

Despite Central Loop’s Class A overall direct availability rate dropping 34 basis points AC to 22.49% and its direct vacancy rate dipping 17 basis points to 12.93%, overall direct availability and vacancy rates rose by 29 basis points to 22.73% and 37 basis points to 15.12%, respectively. Data and predictive analysis firm IRI moved into its 81,000-s.f.

new space at 203 N. LaSalle; Schiller DuCanto & Fleck moved into its new 26,000-s.f. B office at 321 N. Clark; while Fubu Gaming took over Narrative Science’s sublease for 30,000 s.f. at 1 N. Dearborn.

0% 5% 10% 15% 20% 25%

Q1/2021 Q2/2021

GROSS DIRECT NET AVERAGE DIRECT SUBLET DIRECT SUBLET MARKET MOVEMENT ASSET INVENTORY ASKING ABSORPTION YTD BUILDING AVAILABILITY AVAILABILITY VACANCY VACANCY CLASS (SF) RATE Q2/21 ABSORPTION SIZE (SF) RATE (%) RATE (%) RATE (%) RATE (%) (DIRECT) (SF) MOVE-IN NEW LEASE FOR SALE CLASS A 21,453,016 794,556 22.49% 3.14% 12.93% 1.12% $44.27 (1,132) (81,562) STATE OF IRI REVEAL ILLINOIS CLASS B 13,922,916 464,097 23.16% 2.76% 18.13% 1.57% $37.19 (96,481) (381,437) (81,000 SF) (25,000 SF) (945,000 SF) CLASS C 792,497 88,055 21.64% 0.00% 21.36% 0.00% $26.34 (13,321) (37,214) 203 N. LaSalle 145 S. Wells James R. Thompson Center TOTAL 36,168,429 548,007 22.73% 2.93% 15.12% 1.27% $41.16 (110,934) (500,213)

8 | BRADFORD ALLEN // TCN WORLDWIDE MID-YEAR 2021 MARKET REPORT | 9 East Loop Sublet Availability (%) Quarter Over Quarter WACKER DRIVE 2.95%

2.90%

2.85%

2.80% STATE

2.75% LAKE SHORE DRIVE

2.70%

2.65% EAST 2.60% 2.55% CONGRESS PARKWAY

2.50% Q1/2021 Q2/2021

East Loop Direct Vacancy (%), Quarter over Quarter LOOP 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20%

Overall direct vacancy and availability rose from 14.75% to 15.12% and from 19.11% to 20.0%, respectively, quarter over quarter in the East Loop. Class B buildings appeared AC to be shouldering the most pain in the East Loop, with availability rates climbing almost 230 basis points from Q1/21 to Q2/21, while also posting a sublet vacancy rate (3.88%) 25% more than Class A (2.90%) — and almost seven times higher than Class C B (0.58%). During the second quarter, Impact Networking agreed to expand its footprint to 50,000 s.f. at 150 N. Michigan.

0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20%

Q1/2021 Q2/2021

GROSS DIRECT NET AVERAGE DIRECT SUBLET DIRECT SUBLET MARKET MOVEMENT ASSET INVENTORY ASKING ABSORPTION YTD BUILDING AVAILABILITY AVAILABILITY VACANCY VACANCY CLASS (SF) RATE Q2/21 ABSORPTION SIZE (SF) RATE (%) RATE (%) RATE (%) RATE (%) (DIRECT) (SF) EXPANSION AVAIL. SUBLEASE REFINANCE CLASS A 17,563,529 1,033,149 20.07% 2.90% 15.37% 1.50% $38.57 (115,334) (198,310) BEACON IMPACT MCGRAW CLASS B 6,299,711 331,564 20.79% 3.88% 17.63% 3.38% $35.30 (52,187) (148,202) NETWORKING HILL CAPITAL (50,000 SF) (50,000 SF) PARTNERS (1,200,000 SF) CLASS C 2,421,321 134,518 17.42% 0.58% 13.19% 0.40% $27.69 26,362 (70,410) 150 N. Michigan One Prudential Plaza AMA Plaza TOTAL 26,284,561 486,751 20.00% 2.92% 15.72% 1.85% $36.83 (141,159) (416,922)

10 | BRADFORD ALLEN // TCN WORLDWIDE MID-YEAR 2021 MARKET REPORT | 11 Fulton Market/River West Sublet Availability (%), Quarter Over Quarter GRAND 5.75%

FULTON 5.70%

5.65% HALSTED ASHLAND

5.60%

MARKET 5.55%

5.50%

5.45% ROUTE 290

5.40% RIVER Q1/2021 Q2/2021

Fulton Market/River West Direct Vacancy (%), Quarter over Quarter 0% 5% 10% 15% 20% 25% 30% 35%

WEST AC

The seemingly contradictory gulf between high leasing activity and elevated direct availability (27.03%) and vacancy (24.99%) rates across Fulton Market/River West was clearly a result of the almost 400,000 s.f. added to its ledger in 2021. The paradox B is expected to continue as another 500,000 s.f. of office space is projected to be delivered by year’s end. New deals during Q2/21 included Kimberly Clark agreeing to lease 87,000 s.f. at 1155 W. Fulton and Jet Support Services taking 25,000 s.f. at 167 N. Green. In April, Naperville-based Calumus Investments signed a lease for a new office AC at 215 N. Peoria (21,000 s.f.) in hopes to attract employee talent. American Realty

Advisors sold Google’s Midwest HQ at 1K Fulton (531,000 s.f.) for $357 million (or $672 0% 5% 10% 15% 20% 25% 30% 35% p.s.f.) to Office Properties Income Trust in mid-June 2021. Q1/2021 Q2/2021

GROSS DIRECT NET AVERAGE DIRECT SUBLET DIRECT SUBLET MARKET MOVEMENT ASSET INVENTORY ASKING ABSORPTION YTD BUILDING AVAILABILITY AVAILABILITY VACANCY VACANCY CLASS (SF) RATE Q2/21 ABSORPTION SIZE (SF) RATE (%) RATE (%) RATE (%) RATE (%) (DIRECT) (SF) NEW LEASE NEW PRODUCT CONSTRUCTION SALE CLASS A 4,287,691 252,217 30.24% 7.28% 30.24% 1.38% $47.78 58,039 540,019 1K FULTON - KIMBERLY TISHMAN $357M CLARK SPEYER FULTON LABS CLASS B 2,119,975 64,242 23.66% 4.31% 16.60% 1.45% $31.37 (30,594) (66,892) (424,000 SF) (531,000 SF) (87,000 SF) (260,000 SF) Delivery Q4/21 Buyer: Office CLASS C 917,897 57,369 19.83% 0.00% 19.83% 0.00% $30.21 4,957 (32,646) 1155 W. Fulton 320 N. Sangamon Properties Income Trust TOTAL 7,325,563 110,993 27.03% 5.51% 24.99% 1.23% $42.01 T 32,402 440,481

12 | BRADFORD ALLEN // TCN WORLDWIDE MID-YEAR 2021 MARKET REPORT | 13 North Michigan Avenue Sublet Availability (%), Quarter Over Quarter

OAK STREET 2.90%

LAKE SHORE DRIVE 2.80% STATE 2.70% NORTH 2.60% 2.50% CHICAGO RIVER 2.40%

2.30%

MICHIGAN 2.20% Q1/2021 Q2/2021

North Michigan Avenue Direct Vacancy (%), Quarter over Quarter AVENUE 0% 2% 4% 6% 8% 10% 12% 14%

Three industries (healthcare, media, and legal tenants) make up almost 60% of the AB office tenant makeup in the CBD’s NE corner. As North Michigan Avenue posted the CBD’s lowest direct availability (12.73%) and vacancy (9.59%) rates for the second quarter, it is easy to understand why these business sectors continue to plant their roots here with easy access to high-end retail, the lake, and its namesake boulevard. Yet, direct leasing velocity continued to be sluggish, with the submarket recording less AB than 90,000 s.f. for the quarter. Windrose Recovery signed a long-term lease for 11,000 s.f. at 142 E. Ontario, and SAG-AFTRA renewed its office for 9,000 s.f. at 1 E. Erie.

0% 2% 4% 6% 8% 10% 12% 14%

Q1/2021 Q2/2021 MARKET MOVEMENT

GROSS DIRECT NET AVERAGE DIRECT SUBLET DIRECT SUBLET ASSET INVENTORY ASKING ABSORPTION YTD BUILDING AVAILABILITY AVAILABILITY VACANCY VACANCY NEW LEASE FOR SALE CONSTRUCTION CLASS (SF) RATE Q2/21 ABSORPTION SIZE (SF) RATE (%) RATE (%) RATE (%) RATE (%) (DIRECT) (SF) WINDROSE THE HEARN RECOVERY TRIBUNE CLASS A 7,742,784 595,599 11.56% 2.89% 8.58% 1.99% $45.37 (7,802) (61,079) CHICAGO COMPANY TOWER HOTEL (1,200,000 SF) (11,000 SF) (495,000 SF) CLASS B 4,245,454 202,164 14.86% 1.73% 11.43% 1.09% $37.34 8,097 (7,011) 875 N. Michigan Delivery 2022 142 E. Ontario TOTAL 11,988,238 352,595 12.73% 2.48% 9.59% 1.67% $42.10 295 (68,090)

14 | BRADFORD ALLEN // TCN WORLDWIDE MID-YEAR 2021 MARKET REPORT | 15 River North Sublet Availability (%) Quarter Over Quarter OAK STREET 5.80%

5.60%

5.40% STATE

5.20% CHICAGO RIVER

5.00%

4.80%

RIVER 4.60% CHICAGO RIVER

4.40% Q1/2021 Q2/2021

River North Direct Vacancy (%), Quarter over Quarter NORTH 0% 2% 4% 6% 8% 10% 12% 14% 16%

Known for its work-play-live vibe, River North is a popular destination for local AC businesses to call home. Yet, the pressure of 1.5 million s.f. of new office product to be delivered within the next two years is perennially present. Direct availability and vacancy rates rose from 17.31% to 17.41% and from 11.81% to 12.18%, respectively, from Q1/21 to Q2/21. At the newly built 306 W. Erie, US Express Enterprises signed B a new lease for 40,000 s.f., while Workbox co-working moved into its new 15,000-s.f. office.

0% 2% 4% 6% 8% 10% 12% 14% 16%

Q1/2021 Q2/2021

GROSS DIRECT NET AVERAGE DIRECT SUBLET DIRECT SUBLET MARKET MOVEMENT ASSET INVENTORY ASKING ABSORPTION YTD BUILDING AVAILABILITY AVAILABILITY VACANCY VACANCY CLASS (SF) RATE Q2/21 ABSORPTION SIZE (SF) RATE (%) RATE (%) RATE (%) RATE (%) (DIRECT) (SF) NEW LEASE MOVE-IN AVAIL. SUBLEASE CONSTRUCTION CLASS A 5,572,135 619,126 14.62% 2.63% 13.31% 0.83% $42.72 20,368 91,924 US EXPRESS HINES ENTERPRISES WORKBOX VELOCITYEHS CLASS B 9,867,868 156,633 18.88% 8.19% 11.12% 4.33% $39.06 596 (122,620) (15,000 SF) (89,000 SF) (1,200,000 SF) (40,000 SF) 306 W. Erie theMart Salesforce Tower CLASS C 1,452,736 51,883 18.16% 0.75% 15.12% 0.27% $29.72 (16,523) (28,874) 306 W. Erie Chicago TOTAL 16,892,739 168,927 17.41% 5.72% 12.18% 2.83% $39.22 4,441 (59,570)

16 | BRADFORD ALLEN // TCN WORLDWIDE MID-YEAR 2021 MARKET REPORT | 17 South Loop Sublet Availability (%) Quarter Over Quarter

0.30%

0.30% LAKE SHORE DRIVE CONGRESS PARKWAY 0.30% HALSTED STATE 0.30%

0.30% ROOSEVELT SOUTH 0.30% 0.30%

0.30%

0.30% LOOP Q1/2021 Q2/2021 South Loop Direct Vacancy (%), Quarter over Quarter 0% 5% 10% 15% 20% 25% South Loop continues to be the smallest player in the CBD in terms of inventory and leasing velocity. Its main draw is its underlying potential, where an office and flex market should thrive within its strong residential market buttressed by an existing BC transmodal infrastructure. We believe the South Loop is the practical location to get business done for logistics firms drawn to the bird’s-eye view for last-mile coordination. Quarter over quarter, direct vacancy remained flat at 18.90%, while direct availability rose 75 basis points to 53.72%.

0% 5% 10% 15% 20% 25%

Q1/2021 Q2/2021

1000M (MULTIFAMILY) THE 78 CLASS C 224,899 56,225 9.64% 0.00% 9.07% 0.00% $22.97 (3,000) (4,901) (344,000 SF) (1,600,000 SF OFFICE) 1000 S. Michigan Projected Delivery 2024 TOTAL 1,604,160 133,680 53.72% 0.30% 18.90% 0.30% $25.24 (1,900) (153)

18 | BRADFORD ALLEN // TCN WORLDWIDE MID-YEAR 2021 MARKET REPORT | 19 West Loop Sublet Availability (%) Quarter Over Quarter

4.76% KINZIE 4.76%

4.76%

4.76% HALSTED

4.75% WELLS

4.75%

4.75% WEST 4.75% ROUTE 4.75% 290

4.74% Q1/2021 Q2/2021

LOOP West Loop Direct Vacancy (%), Quarter over Quarter 0% 5% 10% 15% 20% 25%

The West Loop posted the most leasing activity as compared to any other submarket in AC the CBD during 2021’s second quarter. Global market research firm Ipsos signed up for 50,000 s.f. at The Franklin; Lactalis Heritage Dairy agreed to take iManage’s sublease at 540 W. Madison (Bank of America Plaza); and Stifel inked a deal to occupy 29,000 s.f. at

1 N. Wacker. Overall, direct availability remained flat at 17.16%, while direct vacancy rose B 81 basis points to 12.35%, quarter over quarter.

0% 5% 10% 15% 20% 25%

Q1/2021 Q2/2021

GROSS DIRECT NET AVERAGE DIRECT SUBLET DIRECT SUBLET MARKET MOVEMENT ASSET INVENTORY ASKING ABSORPTION YTD BUILDING AVAILABILITY AVAILABILITY VACANCY VACANCY CLASS (SF) RATE Q2/21 ABSORPTION SIZE (SF) RATE (%) RATE (%) RATE (%) RATE (%) (DIRECT) (SF) NEW LEASE CONSTRUCTION SUBLEASE AVAIL. SUBLEASE CLASS A 41,463,014 964,256 17.09% 4.52% 11.79% 1.65% $47.86 (692,884) (1,032,620) RIVERSIDE LACTALIS INVESTMENT & IPSOS HERITAGE CLASS B 11,489,264 287,232 16.68% 5.56% 13.55% 2.22% $38.38 (59,474) (260,129) DEVELOPMENT PRICEWATERHOUSECOOPERS (60,000 SF) DAIRY (70,000 SF) (1,500,000 SF) (35,000 SF) CLASS C 1,108,362 73,891 24.97% 5.04% 20.69% 0.59% $31.12 5,484 (25,300) The Franklin 1 N. Wacker BMO Tower 540 W. Madison Delivery Q1/22 TOTAL 54,060,640 551,639 17.16% 4.75% 12.35% 1.75% $45.37 (746,874) (1,318,049)

20 | BRADFORD ALLEN // TCN WORLDWIDE MID-YEAR 2021 MARKET REPORT | 21 SUBMARKET LOCATION MAP

RIVER RIVERNORTH NORTH N. MICHIGAN AVENUE

EAST LOOP

WEST LOOP CENTRAL RIVERLOOP NORTH FULTON MARKET/ RIVER WEST

SOUTH LOOP

22 | BRADFORD ALLEN // TCN WORLDWIDE MID-YEAR 2021 MARKET REPORT | 23 © 2021 // Bradford Allen. All rights reserved. The information contained herein was obtained from sources deemed reliable; however, it has not been independently verified, and no warranties, express or implied, are made as to the accuracy thereof.