MARKETVIEW Santiago Offices, Q4 2020 Low completitions supports vacancy rates 7.3% 0.57 UF/sq.m. 0 sq.m. *The arrows show changes over the previous period. Figure 1: Historical Evolution Class A+B Office Market (%) (000s, sq.m.) 400 14 % 12 % 300 10 % 8 % 200 6 % 100 4 % 2 % 0 0 (2) %) (100) (4) %) (200) (6) %) 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 New Supply Class A+B (sq.m) Net Absorption Class A+B (sq.m) Vacancy Class A+B (%) Unemployment (%) GDP (%) Source: CBRE Research, Q4 2020; National Statistics Institute, Central Bank of Chile, Q4 2020. Estimated 2020 GDP. • Q4 2020 closed with a Class A + B vacancy rate of 8.71%, 1.01 points over the previous period. • The Class-A net absorption is negative in all submarkets, totaling -24,030 sq.m.. • No completitions are registered during the last quarter. • The lease value offered under Class A dropped by 2.2% regarding the previous quarter and closed the year with a weighted average of 0.57 UF/sq.m.. Q4 2020 CBRE Research © 2020 CBRE, Inc. | 1 MARKETVIEW SANTIAGO OFFICES Q4 2020 ECONOMIC SUMMARY DEVELOPMENT PIPELINE Figure 2: Class A and B Buildings Under Construction by Submarkets REAL ESTATE MARKET (000s, sq.m.) 140 120 100 80 60 40 20 0 Class A Class B Class A Class B Class A Class B Class A Class B 2021 2022 2023 2024 Others Las Condes Lo Barnechea Providencia Santiago Vitacura Source: CBRE Research, Q4 2020 * Estimated space according to current construction permits. Estimates may vary according to work progress. Q4 2020 CBRE Research © 2020 CBRE, Inc. | 2 MARKETVIEW SANTIAGO OFFICES Q4 2020 Figure 3: Office Market Class A and B Avg. Asking Under Submarket Total Stock Vacancy Rate Net Absorption New Supply Lease Rate* Construction (sq.m.) (%) (sq.m.) (sq.m.) (UF/sq.m./Mo (sq.m.) nth) Las Condes (A) 1,405,881 7.6 (17,786) - 176,709 0.61 El Golf 800,484 9.2 (11,356) - 111,011 0.63 Nueva Las Condes 372,956 7.1 (4,806) - 21,498 0.57 Eje Apoquindo 232,441 2.9 (1,625) - 44,200 0.54 Providencia (A) 150,326 11.1 (876) - - 0.47 Santiago Centro (A) 381,158 4.6 (5,368) - - 0.40 Total Class A 1,937,366 7.3 (24,030) - 176,709 0.57 Las Condes (B) 678,795 7.8 (7,372) - 16,084 0.50 Las Condes Oriente (B) 117,645 15.7 (471) - - 0.42 Providencia (B) 717,194 5.9 (6,777) - 25,576 0.45 Santiago Centro (B) 345,460 6.1 (5,798) - 8,000 0.36 Vitacura (B) 274,714 10.9 (2,066) - 23,379 0.53 Huechuraba (B) 329,343 17.4 (2,251) - - 0.28 Lo Barnechea (B) 95,057 14.9 1,827 - 41,927 0.44 Others (B) 129,465 19.5 422 - 8,963 0.41 Total Class B 2,687,672 9.73 (22,486) - 125,929 0.42 Source: CBRE Research, Q4 2020 *Weighted average of asking rents, based on available space by building. Any negotiation discounts are not considered 1UF = CLP 29,707.33 equivalent to US$ 40.59 as of 31.12.2020. Figure 4: Significant Occupancies Q4 2020 Building Submarket Company Sector Transaction (sq.m.) Edificio 12 Huechuraba B Telecommunications 5.000 Oficinas Neohaus Lo Barnechea B Real Estate Services 2.500 Costanera Center Barrio El Golf A Chemical 1.200 Source: CBRE Research, Q4 2020. Q4 2020 CBRE Research © 2020 CBRE, Inc. | 3 MARKETVIEW SANTIAGO OFFICES Q4 2020 CLASS A NEW SUPPLY CLASS A AVERAGE LEASE VALUE CLASS A VACANCY Figure 5: Class A Average Lease Value Las Condes Providencia Santiago (UF/sq.m.) 0,70 0,65 0,60 0,55 0,50 0,45 0,40 0,35 2012 2013 2014 2015 2016 2017 2018 2019 2020 Fuente: CBRE Research, Q4 2020. Figure 6: Class A New Supply, Net Absorption and Vacancy (000s, sq.m.) New Supply Class A (sq.m) Net Absorption Class A (sq.m) Vacancy Class A (%) (%) 200 12 % 160 10 % 120 8 % 6 % 80 4 % 40 2 % 0 (0) %) (40) (2) %) (80) (4) %) 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Fuente: CBRE Research, Q4 2020 Q4 2020 CBRE Research © 2020 CBRE, Inc. | 4 MARKETVIEW SANTIAGO OFFICES Q4 2020 NEW SUPPLY CLASS B CLASS B AVERAGE LEASE VALUE VACANCY CLASS B Figure 7: Class B Average Lease Value Las Condes Providencia Santiago Vitacura Huechuraba (UF/sq.m.) 0,60 0,55 0,50 0,45 0,40 0,35 0,30 0,25 2012 2013 2014 2015 2016 2017 2018 2019 2020 Source: CBRE Research, Q4 2020 Figure 8: Class B New Supply, Net Absorption and Vacancy (000s, sq.m.) New Supply Class B (sq.m) Net Absorption Class B (sq.m) Vacancy Class B (%) (%) 250 14 % 12 % 200 10 % 150 8 % 100 6 % 4 % 50 2 % 0 0 (50) (2) %) 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Source: CBRE Research, Q4 2020 Q4 2020 CBRE Research © 2020 CBRE, Inc. | 5 MARKETVIEW SANTIAGO OFFICES Q4 2020 ANNEX ON SUBLEASE MARKET 8.71% 52,000 sq.m. VACANCY RATE WITHOUT SUBLEASE APROXIMATE TOTAL SUBLEASE 9.87% VACANCY RATE WITH SUBLEASE Figure 9: Sublease Market, Class A + B 1% 1% 1% 3% 6% Nueva Las Condes A 8% 33% Barrio El Golf A Providencia B Santiago B 9% Eje Apoquindo A Santiago A Las Condes Oriente B Providencia A 11% Las Condes B Vitacura B 14% Huechuraba B 13% Source: CBRE Research, Q4 2020 Q4 2020 CBRE Research © 2020 CBRE, Inc. | 6 MARKETVIEW SANTIAGO OFFICES Q4 2020 CONTACTS CBRE OFFICES Disclaimer: Information contained herein, including projections, has been obtained from sources believed to be reliable. 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