MARKET REPORT. Vibrant Leasing Activity across Manhattan in the Fourth Quarter MANHATTAN OFFICE 4Q 2013 OFFICE

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1 4Q 2013 OFFICE MANHATTAN OFFICE MARKET REPORT Vibrant Leasing Activity across Manhattan in the Fourth Quarter The Manhattan office market concluded 2013 with a jump in leasing activity. Total leasing activity reached 13.1 million square feet in the fourth quarter, which is up from 6.3 million in the third quarter and just 5.0 million in the fourth quarter of The Manhattan office market hasn t seen such an elevated level of activity since the 2005 through 2007 time frame. All three of Manhattan s markets recorded high activity levels as measure in square feet of completed transactions, with Midtown North at 4.9 million, Midtown South having 2.2 million, and Downtown seeing a surge in activity with 5.9 million square feet. Approximately 3.8 million square feet of Downtown s total came from two transactions: Citigroup s renewal at Greenwich Street and JP Morgan s sale of and lease at One Chase Manhattan Plaza. The average quarterly rate for the last three quarters of 2013 was 9.7 million square feet, which is well above the quarterly average for Manhattan of 6.2 million square feet seen over the previous five years. Usually, above average levels of leasing are associated with strong business and employment growth trends. The recent performance of the New York City economy has been good but not Sale lease-back transactions and large renewals resulted in surge of activity in fourth quarter. LEASING ACTIVITY: MANHATTAN necessarily robust enough to produce such a strong leasing picture. However, the fact that companies may be getting a better picture of their respective future growth prospects even if the outlook is for measured expansion has allowed them to finally make major location decisions. Also, in recent quarters, several sales of large owner-occupied properties that included an associated lease with the seller to remain in the building for a period of time have helped to bolster the level of recorded closed leases. Property values are at or close to all time highs while rent levels remain below previous peak levels. With that set of fundamentals, a sale and lease arrangement can make financial sense for a company that projects changes in its business environment. The overall Manhattan availability rate came down to 11.3 percent from 11.5 percent in the third quarter of 2013 and 11.9 percent in the fourth quarter of Sublease space availability was 1.6 percent or just 14.2 percent of the total amount of available space. All three of Manhattan s major markets recorded steady or lower availability rates. The overhang Steady but measured decline in availability rate during Amount of sublease space has fallen more quickly. AVAILABILITY RATES: MANHATTAN SF 14,000,000 12,000,000 10,000,000 8,000,000 6,000,000 4,972,018 4,885,020 9,620,406 6,306,863 13,106,703 Rate (%) 14% 12% 10% 8% 6% 11.9% 11.5% 11.3% 9.9% 9.8% 9.7% 4,000,000 2,000, Q Q Q Q Q % 2% 0% 2.0% 1.6% 1.7%

2 Rents continued to rise, and demand for sublease space has helped to push its level up. RENTAL RATES: MANHATTAN ($/SF/YEAR) $/SF/Year $65 $60 $55 $50 $40 $35 $30 $56.13 $59.14 $60.41 $57.43 $60.48 of shadow space in parts of the Manhattan market, however, continues to weigh on overall performance. Shortly after the close of the fourth quarter, two large blocks of space in Midtown North, which total nearly 1,000,000 square feet, were put on the market. If posted only a few days earlier, the overall availability rate for the fourth quarter would have remained at 11.5 percent rather than declining to 11.3 percent. In an interesting twist, the vacancy rate, which measures space with no lease in force, moved higher to 7.1 percent from 6.2 percent in the third quarter and 5.8 percent in the fourth quarter of A jump in Downtown s vacancy rate to 9.4 percent from 6.0 percent in the third quarter is the principal reason for the increase in the overall Manhattan vacancy rate. The formal increase in Downtown s vacancy rate doesn t really change the available space situation in the Downtown; although, rents flowing to landlords are reduced, and that may alter the dynamic between potential tenants and landlords. In both the Midtown North and Midtown South markets, the overall vacancy rates were essentially unchanged from the third quarter levels, with very small increases. $61.50 $49.63 $51.69 $54.03 SOLID RESULTS FOR NEW YORK CITY S ECONOMY Through November, total employment in New York City is up by 1.9 percent over the 2012 average for the same eleven month period. Growth for 2013 has been only slightly slower than it was in 2012 or 2011; when total employment grew by 2.2 percent and 2.3 percent respectively. Employment trends among the various major business sectors established during the previous five years continued in On the negative side, publishing except internet experienced a 2 percent decline in 2013, which was actually a slightly larger decline than seen in 2012 or Employment in the large and important financial activities sector was unchanged for 2013 compared to the 2012 level. After two years of no change in total employment, legal services suffered a 1 percent decline in total employment during Virtually all of the business sectors that reported gains in previous years continued their upward trends in Computer systems design had a 5.8 percent increase in 2013, which is slower than the 8.3 percent in 2012 but still rapid growth. Firms in the advertising industry continued their rapid overall expansion. Employment in the advertising sector advanced by 5.6 percent in 2013, which is faster than the 5.2 percent recorded in The digital revolution has been spurring employment growth in this sector as well. Also, companies across business sectors are fighting to increase market share, as one of the few alternatives available to them to increase revenue in a slow growth economy. CYCLICAL & SECULAR EMPLOYMENT TRENDS IN NEW YORK CITY 100.0% 80.0% 84.1% 2008 to 2013 % change 2003 to 2013 % change Employment at Business Sectors Located in Midtown South & Downtown Class B The overall Manhattan asking rent increased to $60.41/sf in the fourth quarter of 2013, from $59.14/sf in the third quarter and $56.13/sf in the fourth quarter of This increase was driven largely by the continued gains made in the Midtown South market. There was a more moderate increase in the Downtown market, and rents were up in Midtown North, but the gain was modest and the weakest of the three major Manhattan markets. 60.0% 40.0% 20.0% 0.0% -20.0% -40.0% 30.6% Computer Systems Design 20.4% 28.7% Higher Education 16.4% 51.6% Management, Scientific, and Technical 35.4% 18.7% 20.3% Motion Picture and Sound Recordings 43.8% Leisure and Hospitality Employment at Business Sectors Located in Midtown North -7.0% -10.1% Legal Services -16.4% 9.5% Investment Banking and Securities -7.2% 0.3% Finance and Insurance -16.2% -16.7% Publishing except Internet 2 COLLIERS INTERNATIONAL

3 Fourth quarter leasing nearly as strong as second quarter s when large sale lease-back occurred. LEASING ACTIVITY: MIDTOWN NORTH SF 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000, ,021,112 2,067,092 5,620,352 3,120,607 4,971,951 4Q Q Q Q Q 2013 The resident population and the number of visitors to the city are both increasing; attracted by the strong economy, cultural attractions, and life style choices. As a result, the need and demand for the broad spectrum of personal and family services grows. The primary and secondary private school sector has averaged annual employment growth of 3.3 percent over the last decade; and in recent years one of the most difficult assignments for a commercial broker is finding suitable space for an existing school s expansion or for the development of a new school. Employment in the post-secondary education sector was up by 6.1 percent in 2013 and 3.8 percent in Higher education has benefited from the rising resident population, but perhaps even more importantly from the strong economy, with its newly emerging industries that attract younger generations. Ambulatory health care services saw a 6.4 percent increase in 2013, and strong gains in recent prior years. The economic base of New York City has become broader and likely more stable over the last decade. There are, however, the nagging concerns about the financial sector. Confounding expectations, the regulatory and legal pressures on the financial activity companies have continued with an unusual belligerence, delaying that sector s recovery. Also, the pace of economic growth around the world is quite modest, compared to historical norms, which also slows the demand for financial services. With financial services in the doldrums, legal and other business services sectors are also held back. These differential employment growth patterns have a direct impact on the demand for office space. The high growth sectors tend to use less space per employee; while the stagnant industries have traditionally required larger amounts of space. Space usage paradigms are changing in the direction of less per employee, but the impact of differential growth rates among the various business sectors should not be minimized. MIDTOWN NORTH HOLDS ITS OWN The overall availability rate in the Midtown North market fell to 11.3 percent from 11.6 percent in the third quarter and 12.4 percent in the fourth quarter of Much of this decline was the result of sublease space being absorbed. In the fourth quarter of 2012, the sublease availability rate was 2.8 percent; and by the end of the 2013 s fourth quarter, it was 1.9 percent. In contrast, the direct availability rate moved from 9.6 percent in the fourth quarter of 2012 to a slightly lower 9.4 percent for the fourth quarter of As mentioned in earlier market reports, the surge in sublease space that made its way to the Midtown North market in late 2012 and early 2013 was absorbed quickly at comparatively low rental rates. Of course, the ample supply of sublease space is symptomatic of substantial changes in the prospects of major tenants in this market, and it is far from clear that this state of affairs has come to an end. An example of the interplay of property sales and available space surfaced in this market in the fourth quarter of Madison Avenue was sold in December 2012 by Young & Rubicam, Inc, and this owneroccupier moved to a new location in the Midtown North market. The building was taken off the market for leasing. A capital infusion by the new owners of 285 Madison Avenue has repositioned the building to appeal to tenants of moderate size that are looking for full floor occupancies. Space in this building was formally brought back to the market in the last quarter of 2013 and adds to available space approximately 450,000 square feet of office accommodations. In the Midtown North market, leasing activity was strong throughout 2013, which has helped to reduce the availability rate. The longer term net absorption of space that results from these leases may be less impressive. The new leases take spaces off of the market quickly, but they are often for future occupancies. As a result, the space to be vacated frequently gets put on the market for leasing with a substantial delay. As a result, in the short term the overall availability rate is depressed. When the tenants AVAILABILITY RATES: MIDTOWN NORTH Rate (%) Overhang of sublease space absorbed in 2013, helping to bring overall rate down. 14% 12% 10% 8% 6% 4% 2% 0% 12.4% 11.6% Total 11.3% 9.6% 9.6% Direct 9.4% 2.8% 2.0% Sublease 1.9% 3 COLLIERS INTERNATIONAL

4 actually do move to the new location, the vacated space will become available if no new tenant is found for the original location. The behavior of the vacancy rate space for which no lease is in force over the last year provides a bit of confirmatory evidence of this phenomenon. In contrast to the decline in the availability rate over the last year, the vacancy rate remained largely unchanged. At the end of the 2013 s fourth quarter, the vacancy rate in the Midtown North market was 7.1 percent, which was up from 6.9 percent in the third quarter and unchanged from 7.1 percent in the fourth quarter of Employment growth in the legal and financial service sectors remained weak through the fourth quarter of 2013, and these two sectors are important demand drivers for overall space usage in this market. Capital One Bank s lease at 299 Park Avenue may typify a significant segment of the overall activity in the Midtown North market. This 250,000-square-foot transaction starts as a sublease of the UBS space in that location. As announced, UBS is reducing its overall space in the New York City market. Capital One Bank, in turn, will consolidate into 299 Park Avenue from other locations in the Midtown North market. The final impact of this transaction involving these two financial service companies is a reduction in the amount of space occupied. The overall availability rate in the Plaza District at 11.4 percent was down from both the third quarter and the year ago rate of 11.9 percent. In the Grand Central submarket, the overall availability rate rose to 14.9 percent from last quarter s 14.1 percent and the previous year s 14.2 percent. The smaller Columbus Circle submarket enjoyed a significant decline, falling from 13.1 percent in the fourth quarter of 2012 to 8.6 percent in the last quarter of The average asking rent in Midtown North increased to $69.73/sf from $69.36/sf in the third quarter and $66.66/sf in the fourth quarter of Rents were essentially flat in the fourth quarter from third quarter levels in the Grand Central and Times Square markets. The Plaza District Class A sector, however, did record a substantial increase, rising to $79.20/sf in the fourth quarter from $77.59/sf in the third quarter. Even with this increase, however, the fourth quarter level is still below the prior peak of $81.87/sf attained in the second quarter 2012 and, of course, well below the levels reached in 2007 and 2008 when the average was in the area of $95/sf. RENTAL RATES: MIDTOWN NORTH ($/SF/YEAR) $/SF/Year Large uptick in sublease rent levels as supply diminished throughout year. $80 $75 $70 $65 $60 $55 $50 $40 The overall vacancy rate in this market remains low by national or regional standards at just 5.4 percent. It increased from 5.3 percent in the third quarter and 4.1 percent in the fourth quarter. The increase in the vacancy rate is substantially attributable to the direct space category, which in turn has been largely influenced by the completion and introduction of new construction into this market. Recently, this new space has started to lease, helping to stabilize at low levels both the vacancy and availability rates. In the fourth quarter, 1stdibs, the world s largest online luxury marketplace for rare and desirable objects, leased 42,000 square feet at 51 Astor Place. Earlier as this new building was nearing completion, some were doubtful whether the Midtown South market could or would support the rent levels needed to make this building a commercial success. The reported terms on the 1stdibs transaction are similar to those in solid Class A space in the Midtown North market; a clear breakthrough for the Midtown South market. The business and economic fundamentals that support the demand for space in the Midtown South market remain in place. Employment growth in the tech sector remains strong. Additionally, though, the Midtown South market now has the amenities infrastructure that can attract Overall availability remains low, keeping balance in favor of landlords. AVAILABILITY RATES: MIDTOWN SOUTH 12% $69.73 $66.66 $69.36 Total $70.07 $71.29 Direct $71.40 $54.90 $60.36 Sublease $61.38 EXPANSION AND DEEPENING OF MIDTOWN SOUTH CONTINUES Midtown South s availability rate held steady in the fourth quarter at 9.1 percent, unchanged from the level in the third quarter, but up modestly from 8.6 percent in the fourth quarter of Direct availability actually declined slightly to 7.6 percent from 7.7 percent in the third quarter and up modestly from 7.4 percent in the fourth quarter of Rate (%) 10% 8% 6% 4% 2% 0% 8.6% 9.1% 9.1% 7.4% 7.6% 7.7% 1.2% 1.5% 1.4% 4 COLLIERS INTERNATIONAL

5 tenants from any sector of the economy, which adds an additional source of demand for space. Sony s decision to relocate from 550 Madison Avenue, between 55th and 56th Streets, in the heart of the Plaza District to 11 Madison Avenue in a 500,000-square-foot transaction is an example of the broad range of viable alternatives that are now available to tenants. Rent growth in the Midtown South market continued its unabated upward trend. The overall Class A average asking rent reached $64.52/sf, which was up from $63.75/sf in the third quarter and $54.82/sf in the fourth quarter of The Class B sector also surged. The average asking rent reached $55.05/sf from $52.88/sf in the third quarter and $47.28/sf in the fourth quarter. In the fourth quarter of 2013, leases involving large blocks of space in the Midtown South market were completed at levels well above these averages, as already mentioned. Also important to remember when Large corporate as well as tech sector tenants remained very active in this market. LEASING ACTIVITY: MIDTOWN SOUTH SF 3,000,000 2,500,000 2,000,000 1,500,000 1,000, , ,122,042 1,574,003 2,697,155 1,954,639 2,211,898 4Q Q Q Q Q 2013 comparing relative rent levels between Midtown South buildings and those in the Midtown North and Downtown markets is that some operating expenses are not included in Midtown South base rents, but they are part of the base rent in Midtown North and Downtown properties. Therefore, an equal base rent in each of the three markets likely results in a higher overall occupancy cost in the Midtown South market. In short, the occupancy cost differential between Midtown North and Midtown South has closed dramatically over the last two years. RENTAL RATES: MIDTOWN SOUTH ($/SF/YEAR) $/SF/Year Direct rents up 18.4% during 2013, with effective occupancy costs approaching Midtown North levels. $65 $60 $55 $50 $40 $35 $30 $25 $20 $55.18 $47.36 $53.08 Total $57.13 $48.24 $55.29 Direct $41.92 $41.04 Sublease.22 competitive lease rates has encouraged large occupiers to investigate the Downtown location option. Additionally, there has been intense interest and activity in the Class B segment of the Downtown market. In particular, firms in the Midtown South market are moving into this portion of the market as space in Midtown South becomes more expensive. Leasing was unusually strong, and the Citigroup and JP Morgan transactions have already been noted. There were, in addition, other very notable deals. Jones Day took 330,000 square feet in Brookfield Place, 250 Vesey Street. This deal involves a move from the Midtown North market to Downtown for Jones Day, and reports on the deal s terms indicate that it was done at a level that would have been difficult to match in Midtown, especially for similar space. The landlord is spending approximately $250 million on renovating the public areas of Brookfield Place, updating and enhancing the properties amenities and visual appeal. In a type of transaction that is becoming more common in Manhattan, CME Group sold its property at 1 North End Avenue and took the space back in a long-term, 15-year, lease for half of the space and a shorter lease for the rest. This transaction increased the leasing total by nearly 450,000 square Citigroup renewal boosted the total, but a number of other large transactions occurred. LEASING ACTIVITY: DOWNTOWN 6,000,000 5,000,000 5,922,854 A VERY ACTIVE QUARTER DOWNTOWN Downtown s availability rate declined to 14.3 percent from 14.7 percent in the third quarter and 15.6 percent in the fourth quarter of There is little sublease space in this market, with the sublease lease availability rate at 1.3 percent. As noted earlier, leasing activity was particularly high in this market in the fourth quarter. The ample amount of Class A space at SF 4,000,000 3,000,000 2,000,000 1,000, ,864 1,243,925 1,302,899 1,231,617 4Q Q Q Q Q COLLIERS INTERNATIONAL

6 feet. Also, the government sector participated, with the Health & Hospital Corporation completing a 221,000 square foot deal at 55 Water Street. The calculated average asking rent in the Downtown market moved higher in the fourth quarter, with the Class A average reaching $51.62/sf from $48.87/sf in the third quarter and $47.09/sf in the fourth quarter of The jump in the average for the fourth quarter is somewhat deceptive, however. As more space in the World Trade Center development becomes available, the average asking rent for the entire Downtown market increases. Pricing in the rest of the Class A, Downtown market has remained relatively unchanged during the past year. For Class B space Downtown, the story is different. The average asking rent is up nearly 10 percent over the last year. Tech firms are pushing into this submarket in an attempt to avoid the escalation in Midtown South rents. This migration has clearly had an impact on rent levels, with the direct Class B rent averaging nearly $41/sf in the fourth quarter. As New York City s economic recovery began in late 2009 and early 2010, Class B rents in the Downtown market averaged, at best, in the low-$30s/sf. Rent behavior in Manhattan s various markets and submarkets over the past several years gives testimony to the power that basic economic and business forces have on the demand for space and the concomitant impact on rents. The average Midtown South rent is up approximately 50 percent since the start of the business recovery, with tech providing the leading edge to this demand. Class B space in the Downtown market has started to feel the benefit of a strong tech sector. In contrast, the weak financial sector has prevented Midtown North from enjoying its traditional role in leading the property market recovery. Downtown s Class A segment has both a weak financial sector and substantial new inventory to slow the decline in available space and the rise in rents. ACTIVE INVESTMENT SALES MARKET Office sales closed in 2013 reached $19.7 billion, with 65 transactions exceeding $5 million in value. This dollar figure is only exceeded by the total for 2007 of $30.3 billion. Sales of Class A properties totaled $15.7 billion, and the average price for the year was $829/sf, which is below the over $900/sf figure that was computed for the first three quarters of The overall average sales price for all classes of property for 2013 was $769/sf; only 1.0 percent below the level in 2007 and 8.7 percent lower than the level in Of course, the Tech and consumer sectors have pushed Midtown South and Downtown s Class B; while weak financial sector has restrained Midtown North and Downtown s Class A. CHANGE IN ASKING RENTS SINCE END OF 2008/09 RECESSION 160.0% Downtown Class B Downtown Class A Midtown South Midtown North 150.0% 140.0% 130.0% 120.0% 110.0% Rents in all four markets are indexed to 100 at end of End point indicates the percent increase in rents for that market as of 4Q % 119.5% 118.4% 100.0% 104.9% 90.0% 80.0% 1Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q COLLIERS INTERNATIONAL

7 Leases with large Midtown tenants help to bring the availability rate down. AVAILABILITY RATES: DOWNTOWN Average rent level has increased as new World Trade Center space becomes available. RENTAL RATES: DOWNTOWN ($/SF/YEAR) Rate (%) 20% 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% 15.6% 14.3% 14.2% 14.7% 13.0% 13.1% 1.4% 1.3% 1.6% $/SF/Year $55 $50 $40 $35 $30 $25 $20 $48.60 $ $46.50 $47.48 $48.37 $33.51 $34.57 $34.96 sales market nearly closed in the second half of 2008; so the price figure for 2008 is on less volume of $12.1 billion on 31 transactions, with virtually all of it from the first half of the year. In the fourth quarter of 2013, a substantial number of large Class A properties sold in the Downtown market as well as some in the less prominent submarkets in Midtown North. For example, One Chase Manhattan Plaza, in the Downtown market, sold for $330/sf. Some analysts doubted that this was a solid price for a large building closely associated with the financial services industry in the Downtown market. In the Midtown North market, 825 Eighth Avenue and 605 Third Avenue both sold in the area of the mid-to-high-$600/sf; again well above their previous sales prices. Finally, to show that prices in the fourth quarter didn t weaken, a 45 percent interest in 7 Times Square sold for a reported $1,216/sf. The Federal Reserve commenced its program to reduce purchases of longer dated bonds in December; and by the end of 2013, the 10-year Treasury had a yield of slightly more than 3 percent. This increase is from the bottom of 1.6 percent reached in mid-2013, but the Fed has announced that it will maintain an easy money policy into Nevertheless, with long rates rising, one would expect to see a growing list of buildings for sale, all trying to avoid tighter credit conditions. Average sales price in 2013 nearly matched levels in 2007 and 2008 while rent level was 14.5% lower. MIDTOWN AVERAGE PRICES/SF: CLASSES A &B Price/SF $1,000 Price/SF Average Asking Rent Rent/SF $90 $800 $68.62 $69.12 $75 $600 $400 $ $41.89 $37.80 $39.31 $43.90 $53.68 $49.11 $48.62 $51.33 $56.13 $60.41 $60 $30 $200 $15 $0 $223 $273 $323 $462 $333 8 $605 $777 $842 $333 $496 $565 $516 $ $0 7 COLLIERS INTERNATIONAL

8 MANHATTAN OFFICE LEASING REPORT 4Q 2013 MANHATTAN Change: UPDATE SUBMARKET COMPARISONS 4Q12 1Q13 2Q13 3Q13 4Q13 Last Year Last Qtr MIDTOWN NORTH Availability Rate (%) Class A 13.1% 13.5% 13.1% 12.4% 11.9% pp pp Class B 8.0% 7.4% 7.7% 7.2% 8.0% pp pp Class C 10.6% 10.2% 8.6% 8.6% 5.7% pp pp Asking Rental Rate Class A $68.17 $66.49 $67.39 $70.77 $71.25 $3.08 $0.49 Class B $48.11 $49.96 $51.48 $51.01 $51.84 $3.74 $0.84 Class C $37.73 $34.75 $35.65 $35.80 $ $0.11 $1.81 Leasing Activity (Qtr) Total 3,021,112 2,067,092 5,620,352 3,120,607 4,971,951 1,950,839 1,851,344 Absorption (Qtr) Total (243,566) (570,271) 756,367 1,529, ,839 1,038, ,651 PETER P. KOZEL, Ph.D. Executive Managing Director / Chief Economist peter.kozel@colliers.com MIDTOWN MANHATTAN 380 Madison Avenue New York, NY MIDTOWN SOUTH Availability Rate (%) Class A 9.3% 9.4% 9.3% 9.2% 9.5% pp pp Class B 9.3% 10.0% 10.7% 10.4% 10.2% pp pp Class C 6.7% 6.5% 6.6% 6.5% 6.9% pp pp Asking Rental Rate Class A $54.82 $59.51 $60.92 $63.75 $64.52 $9.70 $0.77 Class B $47.28 $49.23 $49.74 $52.88 $55.05 $7.77 $2.18 Class C $38.24 $39.07 $40.77 $41.40 $44.26 $6.02 $2.87 Leasing Activity (Qtr) Total 1,122,042 1,574,003 2,697,155 1,954,639 2,211,898 1,089, ,259 Absorption (Qtr) Total (63,168) (500,654) (533,244) 253,277 (63,228) ,505 DOWNTOWN Availability Rate (%) Class A 17.6% 17.1% 18.0% 16.7% 16.3% pp pp Class B 11.0% 11.5% 11.0% 10.8% 10.5% pp pp Class C 9.3% 9.2% 9.8% 5.2% 4.5% pp pp Asking Rental Rate Class A $47.09 $47.05 $47.25 $48.87 $51.62 $4.53 $2.75 Class B $37.27 $37.97 $39.29 $38.18 $39.98 $2.71 $1.80 Class C $31.73 $31.73 $31.73 $31.73 $31.73 $0.00 $0.00 Leasing Activity (Qtr) Total 828,864 1,243,925 1,302,899 1,231,617 5,922,854 5,093,990 4,691,237 Absorption (Qtr) Total 855, ,094 (646,702) 1,329, , , ,071 MANHATTAN Availability Rate (%) Class A 13.8% 13.9% 13.9% 13.1% 12.8% pp pp Class B 9.4% 9.8% 10.1% 9.8% 9.8% pp pp Class C 7.3% 7.1% 7.1% 6.6% 6.6% pp pp Asking Rental Rate Class A $60.28 $59.47 $60.08 $62.91 $64.06 $3.78 $1.15 Class B.12 $46.67 $47.13 $49.47 $51.40 $6.28 $1.93 Class C $37.72 $38.08 $39.45 $39.78 $42.33 $4.61 $2.55 Leasing Activity (Qtr) Total 4,972,018 4,885,020 9,620,406 6,306,863 13,106,703 8,134,685 6,799,840 Absorption (Qtr) Total 549,248 (777,831) (423,579) 3,112,752 1,190, ,277-1,922,227 pp: percentage points Over 482 offices in 62 countries on 6 continents Over 13,500 professionals with more than 4,800 brokers Over 1.12 billion square feet managed US $71 billion in transaction value US $2.0 billion in global revenue Information contained herein has been obtained from sources that we deem reliable. We have no reason to doubt its accuracy, but we do not guarantee it. Some statements in this report are forward-looking statements or statements regarding future events, which involve risk and uncertainty, and there can be no assurance that the results described in such statements will be realized. ABOUT COLLIERS INTERNATIONAL Colliers International is the third-largest commercial real estate services company in the world, with over 12,300 professionals operating out of more than 520 offices in 62 countries. A subsidiary of FirstService Corporation (NASDAQ: FSRV; TSX: FSV and FSV.PR.U), it focuses on accelerating success for its clients by seamlessly providing a full range of services to real estate users, owners and investors worldwide, including global corporate solutions, brokerage, property and asset management, hotel investment sales and consulting, valuation, consulting and appraisal services, mortgage banking and research. Commercial Property Executive and Multi-Housing News magazines ranked Colliers International the top U.S. real estate company. The latest annual survey by the Lipsey Company ranked Colliers International as the second-most recognized commercial real estate firm in the world. Accelerating success. 8 COLLIERS INTERNATIONAL