Market Overview New York Capital Markets

Transcription

1 Accelerating success. Market Overview New York Capital Markets

2 Market Snapshot Market Snapshot - Manhattan Capital Markets - Manhattan Leasing Market 2

3 Overview Near Record Activity Continues in 2016: 2016 was an exceptionally strong sales year for Manhattan, 502 deals totaling $42.9 billion. Multifamily Dominates Activity: Quickly has become the most active investment asset class, accounting for 217 transactions, or 43% of all activity. Garnering attention from institutional investors across the globe due to the supply/demand imbalance and secure cash flow. Capital Values Continue Steady Upward Trend: Nearly every product type has witnessed an increase in year-over-year capital values. Midtown Class A office values up nearly 3% to $1,124 per square foot with an average cap rate of 4%. Midtown Class B office values up 14% to $882 per square foot this year with an average cap rate of 3.5%. Land pricing under pressure due to condo supply side concerns and challenging construction financing. Condominium Pricing Sets New Records: Manhattan condos at record $2,209 PSF after 13% year-over-year increase. Large Transactions Capture Significant Market Share: 16 transactions greater than $500 million, eight of which exceeded $1 billion. The 16 largest deals of the year accounted for $16.5 billion, or 38%, of all dollar volume. Seven of those were partial interest deals, reflecting owner confidence in the long-term appreciation of New York City real estate. Foreign Participation Continues: 2015 saw foreign participation rise to 45% ($15 billion) more than double the historic 10% to 20% range saw 40% ($17.28 billion) of investment attributed to foreign investors. 3

4 2016 Closed Manhattan Investment Sales Activity Total Size Product Type # of Deals % of Deals Square Feet Units / Keys Total Dollars % of Dollars Average Deal Size Avg / SF or Unit or Key Multifamily % 13,862,152 16,545 $8,011,800, % $36,920,738 $643 / $571,073 Office % 37,815,240 $21,867,803, % $242,975,589 $898 Land % 7,728,899 $4,684,796, % $52,053,295 $665 Retail % 1,555,457 $2,474,926, % $48,527,976 $2,317 Hotel % 8,167 $4,083,442, % $113,428,962 $585,501 Other % $1,821,464, % $101,192,478 TOTAL % 60,961,748 24,712 $42,944,233, % $85,546,282 Under Contract 10 $2,085,750,235 Closed & Under Contract $45,029,983,820 Psf calculations exclude leasehold interest positions, bankruptcy auctions and multifamily rent controlled portfolios. 4

5 2016 Manhattan Multifamily Investment Sales Activity By Submarket Uptown Midtown South Midtown Downtown Total Total # of Deals Total Units 6,775 3,367 4,792 1,611 16,545 Total Dollar Volume $2,007,352,232 $2,370,659,619 $2,725,282,009 $908,506,215 $8,011,800,075 Avg Price Per Unit $339,488 $704,086 $779,090 $563,939 $571,073 Total Square Feet Sold 5,406,136 2,927,298 4,166,043 1,362,675 13,862,152 Avg Deal Size $19,874,774 $40,180,672 $52,409,269 $181,701,243 $36,920,734 Avg Price PSF $373 $818 $863 $667 $643 Uptown properties are north of 125th Street 5

6 2016 Manhattan Office Investment Sales Activity By Submarket Midtown Class A Midtown Class B Midtown South Downtown Uptown Total Total # of Deals Total Sq Ft 17,241,928 4,023,191 3,426,114 11,505, ,567 37,815,240 Total Dollar Volume $12,622,664,000 $2,662,868,250 $2,867,518,970 $3,891,751,783 $96,000,000 $22,140,803,003 Avg Price PSF $1,124 $882 $837 $565 $491 $898 Avg Deal Size $901,618,857 $83,214,632 $110,289,191 $259,450,118 $32,000,000 $246,008, Manhattan Land/Redevelopment Investment Sales Activity By Submarket Midtown Midtown South Downtown Uptown Total Total # of Deals Total Sq Ft 4,857,233 1,286, ,582 1,226,335 7,728,899 Total Dollar Volume $3,007,832,876 $1,144,008,065 $225,000,000 $307,955,570 $4,684,796,511 Avg Price PSF $633 $889 $669 $402 $665 Avg Deal Size $57,842,940 $39,448,553 $45,000,000 $76,988,892 $52,053,295 Uptown properties are north of 125 th Street 6

7 2016 Manhattan Retail Investment Sales Activity By Submarket Midtown South Midtown Downtown Uptown Total Total # of Deals Total Sq Ft 375, ,122 56, ,900 1,556,457 Total Dollar Volume $956,196,840 $1,277,649,891 $92,650,000 $148,430,027 $2,474,926,758 Avg Price PSF $2,632 $3,4941 $1,635 $503 $2,317 Avg Deal Size $32,972,304 $98,280,760 $18,530,000 $37,107,506 $48,527, Manhattan Hotel Investment Sales By Submarket Midtown Midtown South Downtown Total Total # of Deals Total Keys 4,289 2, ,167 Total Dollar Volume $2,453,129,134 $1,142,797,718 $487,515,785 $4,083,442,637 Avg Price Per Key $690,907 $450,189 $532,513 $585,501 Avg Deal Size $129,112, ,233,143 $97,503,157 $113,428,962 Uptown properties are north of 125 th Street 7

8 Unemployment Rate US/NYC MSA/Manhattan % Unemployment NYC MSA: 5.4% Manhattan: 4.8% US: 5.0% 3.5 3Q2016 4Q2014 1Q2014 2Q2013 3Q2012 4Q2011 1Q2011 2Q2010 3Q2009 4Q2008 1Q2008 2Q2007 3Q Q2 2004Q3 2003Q4 2003Q1 2002Q2 2001Q3 2000Q4 United States NYC Metropolitan Statistical Area Manhattan Source: Moody s.com 8

9 New York Market Perspective New Office Building Construction by Decade Average = 63.6 MSF per decade 71 Million SF 270 Park Ave - 1,132,460 Square Feet (millions) 1285 Sixth Avenue - 1,473, West 43rd St - 1,128,000 1 Chase Manhattan Plaza- - 1,898, Park Ave - 1,250, Broad St - 1,014, Park Ave - 2,254, Sixth Avenue - 1,987, Park Ave - 1,529, Sixth Avenue - 1,764, Maiden Ln - 1,043, Park Ave - 1,611, Federal Plaza- 1,109, Broadway - 1,200, Third Ave - 1,125, Fifth Ave - 1,637, Sixth Avenue - 1,640,000 2 Penn Plaza- - 1,500,000 1 NY Plaza- -2,103, Park Ave - 1,600, West 33rd St - 1,500, Million SF 153 East 53rd St - 1,492, Sixth Avenue- 1,430, Sixth Avenue- - 1,734,105 1 Bankers Trust Plaza- - 1,363, Broadway - 2,240,000 1 Penn Plaza- - 2,072,136 1 Liberty Plaza- - 2,121, Water St - 3,600,000 9 West 57th St - 1,500, Sixth Avenue- - 1,310, Sixth Avenue- - 1,000, Sixth Avenue- - 2,200, Sixth Avenue- - 1,893, Broadway - 1,417,450 1 WTC - 3,958,091 2 WTC - 3,958,091 2 NY Plaza- - 1,345, Million SF 237 Park Ave - 1,142, East 52nd St - 1,050, Park Ave - 1,137, Madison Ave - 1,016, Madison Ave - 1,046, Broad St - 1,040, Barclay St - 1,140, Seventh Ave - 1,429,610 1 WFC - 1,461,365 3 WFC - 2,300,000 4 WFC - 1,600,000 2 WFC - 2,200,000 7 WTC - 1,855,000 Financial Sq - 1,000, Eighth Ave - 1,550, Greenwich St - 1,600,000 Inventory reduced by 31 MSF due to World Trade Center (15 MSF) and residential conversions (16 MSF) Average = 14.2 MSF per decade 10 Millions SF 60 Wall St - 1,587, Broadway - 1,220,732 4 Times Square - 1,477, Million SF 383 Madison Ave - 1,200, Seventh Ave - 1,036,741 5 Times Square - 1,062,203 Columbus Center - 1,016, Lexington Ave 1,300, Madison Ave - 1,200,000 7 Times Square - 1,000,000 7 WTC - 1,700, Sixth Avenue- - 2,100, Eighth Ave - 1,500, Times Square 1,100, West Street 2,000, W 14 th Street 135, Astor Place 430, W 47 th Street 745, Madison 300,000 1 WTC 3,500,000 4 WTC 2,300, West 55 th St 1,050,000 7 Bryant Park 470, Million SF 1960s 1970s 1980s 1990s 2000s Present Net addition to supply over past 3 decades (1990 s Present) = 3.9 MSF per decade. New office development is concentrated in Downtown and the Far West Side. Note: Total construction square footage includes all new office buildings above 100,000 SF. Source: Colliers International Research 9

10 New York Market Perspective Pipeline of New Office Building Construction by Year Year Expected Delivery (SF) Additions to Supply (%) Pre Leased SF Net New Space Available ,551, % 561,000 1,990, ,800, % 2,369,000 3,431, ,081, % 3,515,000 1,566, , % 0 640, ,623, % 223,000 1,400,000 SUBTOTAL PRE ,700, % 6,672,000 9,028, & Beyond 18,100, % 1,700,000 16,400,000 NYC is witnessing a much needed construction boom to modernize its office stock. Despite the new construction, the additions to supply equal less than 6% of the total market. Source: Colliers International Research 10

11 Manhattan Availability Horizon (4Q2016) 18,000,000 Numerous planned construction projects are awaiting anchor tenants 16,000,000 14,000,000 12,000,000 Square Feet 10,000,000 8,000,000 6,000,000 4,000,000 2,000, TBD Uncommitted New Construction/Renovation Planned Construction Future Known Availability 11

12 Annual Investment Sales Activity Total Sales Activity US $ billions $70 $60 $50 $40 $30 $20 $340 (12) $421 (9) Midtown and Midtown South Downtown Weighted Average Midtown Class A Office Price PSF # of Class A Transactions $443 (15) $475 (17) $434 (14) $549 (15) $749 (28) $875 (41) $941 (15) $335 (2) $590 (10) $836 (7) $743 (7) $1,083 (15) $1,344 (6) $1,096 (21) $1,124 (14) Price PSF $1,600 $1,400 $1,200 $1,000 $800 $600 $400 $10 $200 # of Deals Volume ($B) $10.3 $12 $8.5 $10 $15 $21 $35 $48.5 $19.6 $3.5 $12.4 $25 $25 $30.2 $39.8 $60.3 $42.9 Numbers in parentheses represent the number of Class A transactions each year. In 2015, 8 of the 21 Class A transactions were for a partial interest. In of the Class A sales were for a partial interest. Source: Colliers International Research 12

13 Annual Investment Sales by Investor Profile Based on 2013 Total Sales of $30.2 Billion Based on 2014 Total Sales of $39.8 Billion Pension Fund 10% Pension Fund 3% Private Capital 61% REIT 13% Private Capital 63% REIT 15% Foreign 16% Foreign 19% Based on 2015 Total Sales of $60.3 Billion Based on YTD 2016 Sales of $42.9 Billion Foreign 45% Private Capital 46% Pension Fund 6% REIT 3% REIT 11% Private Capital 44% Foreign 40% User 5% NYC remains the primary investment market. Foreign activity remains strong, after a record participation rate in Source: Colliers New York Capital Markets 13

14 Foreign Capital Inflows 2016 Total Dollars Invested by Country $9,000,000,000 $8,000,000,000 $7,000,000,000 $7.7 B $17.28B = 40% of $ invested 62 transactions = 12% of total transactions $6,000,000,000 $5,000,000,000 $4,000,000,000 $3,000,000,000 $3,100 M $2,000,000,000 $1,730 M $1,400 M $1,000,000,000 $578 M $565 M $523 M $378 M $264 M $219 M $173 M $158 M $150 M $138 M $124 M $59 M $18 M Source: Colliers New York Capital Markets Note: The only countries to date with multiple Manhattan transactions are Canada (4), China (16) and Germany (3). Excludes Saudi Arabia which closed one deal for $1.4 Billion. 14

15 Midtown Class A Cap Rates vs. Rent Growth & 10-Yr Treasuries Weighted Average Cap Rates, Cap Rate 10-Yr Treasury 10.00% 10.00% 9.00% 9.00% 8.00% 7.30% 7.58% 7.34% 8.00% 7.00% 6.00% 5.00% 4.00% 6.20% 5.40% 5.10% 6.34% 4.93% 4.64% 4.70% 5.10% 4.90% 4.04% 3.55% 4.45% 5.85% 5.24% 4.40% 4.60% 4.30% 3.88% 3.79% 4.00% 7.00% 6.00% 5.00% 4.00% 3.00% 2.00% 1.00% 3.40% 3.90% 3.90% 3.70% 3.30% 2.90% 1.50% 2.10% 2.50% 2.19% 2.45% 3.00% 2.00% 1.00% 0.00% Y-O-Y rent growth % (4%) 11% (7%) 7% 4% 18% 29% 1% (27%) 1% 8% 3% 4% 2% 3% 2% Note: 10-Yr Treasury as of June for each year (does not include the spread) except 2016 which is year-end. Interest rates witnessed the first meaningful increase in five years during Q4 16 both organically and through a Fed rate hike All signs point to an additional rate hike by the Fed during the first quarter of % Source: Colliers New York Capital Markets 15

16 Manhattan Class B Historical Office Sales $6 B $5 B $4 B $3 B $2 B $1 B $314 Midtown Class B Historical Office Sales $603 $577 $581 $480 $882 $1,000 $900 $800 $700 $600 $500 $400 $300 $200 $100 $7 B $6 B $5 B $4 B $3 B $2 B $1 B Midtown South Class B Historical Office Sales $796 $742 $591 $481 $406 $379 $900 $800 $700 $600 $500 $400 $300 $200 $100 B B $ Volume Average Price PSF $ Volume Average Price PSF Downtown Class B Historical Office Sales $6 B $5 B $4 B $3 B $2 B $1 B B $514 $446 $387 $274 $214 $ $600 $500 $400 $300 $200 $100 Class-B office values continue to witness appreciation as tenants in the fastest growing industries seek space in vintage, loft style buildings clustered amongst other tenants in their respective industries. $ Volume Average Price PSF 16

17 Historical Land Sale Pricing vs. Residential Condominium Pricing Average Land Sale Price PSF Average Condo Price PSF $700 Average land sales PSF Average condo PSF $665 $2,500 $636 $2,209 $600 $559 $596 $1,959 $2,000 $500 $400 $431 $428 $1,142 $1,225 $466 $1,374 $410 $1,210 $357 $1,167 $1,229 $375 $1,275 $1,369 $1,529 $1,500 $300 $314 $1,000 $200 $500 $100 # of Land Sales # of Condo Sales ,186 6,969 5,713 4,029 5,240 5,05 4,330 5,021 5,050 5,147 5,433 Residential condominium pricing represents the average for both new and resale condominium units. Source: Elliman Decade Report and Colliers New York Capital Markets 17

18 Historical Land Sale Pricing by Submarket $1,000 $900 $800 $700 $600 $500 $400 $300 $200 $100 Midtown South $889 $795 $ $467 $462 $421 $437 $398 $382 $ $ $700 $600 $500 $400 $300 $200 $100 Midtown $662 $ $633 $ $ $450 $ $402 $385 $354 $ Price Per SF Number of deals Price PSF Number of deals $800 $700 $600 $500 $400 $300 $200 $100 Downtown 20 $669 $ $501 $451 $415 $448 $371 9 $293 $308 $ $700 $600 $500 $400 $300 $200 $100 Overall Market $636 $ $596 $ $ $431 $428 $ $375 $ $ Price PSF Number of deals Price PSF Number of deals Source: Colliers New York Capital Markets 18

19 Notable Manhattan Transactions 1250 Broadway Office 721,000 SF Seller: Jamestown Buyer: Global Holdings $565,000,000 $784 PSF Blockfront between West 31 st and 32 nd Streets 84% occupied Anchor tenant is Visiting Nurse Service, who occupy 320,000 square feet through 12/18. VNS will be leaving the property upon their expiration. Acquisition was financed with a $330 MM loan from HSBC. 441 Ninth Avenue Land/Development 515,000 BSF Seller: Emblem Health Buyer: Cove Property Group JV Baupost $330,000,000 $641 PBSF Occupies a full City block fronting Ninth Avenue between 34 th and 35 th Streets. Building is currently home to Emblem Health, who occupies the 423,000 SF building and will move out in one year. Site can be redeveloped to 515,000 SF. Plans call for a full redevelopment with portion of the ground floor to be converted to retail. 63 Wall Street Multifamily 476 Units Seller: MetroLoft JV DTH Capital Buyer: Rockpoint Group $239,114,603 $502,342 Per Unit Corner of Wall and Hanover 4.8% going-in cap rate. Average in-place rent is $60.11 per square foot. Benefits from a 421-g through June Unit mix includes 170 studios, 143 studios with office, 124 one bedrooms, 22 one bedrooms with office and 17 two bedrooms. 371 Seventh Avenue (Stewart Hotel) Hotel 618 Keys Seller: Pebblebrook Hotel Trust Buyer: A&B Sons JV Sioni Group JV Highgate $217,500,000 $351,942 per key 4.1% going-in cap rate. The hotel totals 470,000 square feet ($460 per square foot). The hotel ownership was consolidated by Pebblebrook and then sold. 133 Greenwich Street (Courtyard by Marriott) Hotel 317 Units Seller: Hidrock Realty Buyer: Union Investment $206,000,000 $649,842 per Unit Located at Thames and Greenwich The brand new hotel was designed by Peter Poon and is situated at the foot of the World Trade Center. Hidrock will retain the retail component of the property totaling 2,600 square feet. September 2016 September 2016 September 2016 December 2016 December

20 Notable Manhattan Transactions 67 Wall Street (The Crest) Multifamily 317 Units Seller: Metroloft JV DTH Capital Buyer: Rockpoint Group $182,391,612 $575,638 Per Unit Located on the corner of Pearl and Wall. 4.8% going-in cap rate Property benefits from a 421-g through June Unit mix includes 131 studios, 91 one bedrooms, 79 one bedrooms with office, 25 two bedrooms and 5 two bedrooms with office. 292 Madison Office 203,000 SF Seller: Marciano Brothers Buyer: Vanbarton Group $180,000,000 $887 PSF Located at 41 st Street and Madison Avenue. 2.1% going-in cap rate. Major tenants at the property include Buford Capital and Hogg Robinson. The acquisition was financed with a $75 million loan from DB. 240 West 35th Street Office 165,720 SF Seller: RPW Group Buyer: ATCO Properties $108,000,000 $652 PSF Between 7 th and 8 th Avenues. 96% occupied 4.35% going-in cap rate. 65% of the square footage rolls within the first five years. Recently renovated corridors, elevators and restrooms. 145 East 57th Street Office and Retail 64,190 SF Seller: MIP Buyer: ABS Partners JV Benenson $62,750,000 $978 PSF Between Lexington and Third Avenues. Office space is 63% occupied 2.5% going-in cap rate. The retail space is leased to Hammacher Schlemmer at $200 psf. The property is undergoing a $10 million renovation. 53 West 36th Street Office 82,196 SF Seller: Hidrock Realty JV Assurant Buyer: Effy Jewelery $54,000,000 $657 PSF Between Fifth and Sixth Avenues 4.3% going-in cap rate. In-place rents are $44.00 per square foot. Property recently underwent a $3.2 million capital improvement program. 75% of the square footage rolls in the next five years. September 2016 October 2016 December 2016 October 2016 October

21 Market Snapshot Market Snapshot - Manhattan Capital Markets - Manhattan Leasing Market 21

22 Overview Leasing Activity Up 5.5% Y-O-Y: At MSF, Manhattan full-year leasing activity was 5.5% higher year-over-year also surpassed full year leasing from eight of the last ten years. Only 2014 s MSF and 2013 s MSF topped leasing volume in FIRE (financial services, insurance and real estate) sector leads the way: Accounting for 31% of all activity Major FIRE activity in 2016 included UBS renewal at 1285 Avenue of the Americas, Two Sigma Investments 217,000 SF renewal/expansion at 100 Avenue of the Americas and a total of 808,000 SF of new leases and expansions from WeWork throughout Manhattan. Asking Rents Continue Upward Climb: At an average of $73.24/ SF, asking rents were 2.4% higher since year-end, Manhattan s Availability Rate Ticked Up 0.7pp (percentage points) to 10.3%: Large blocks of available space were added during the year, mostly as a result of new construction/major renovations. Sublet availability was higher for the year by 0.4pp to 1.8% but has remained at or below 2% for the last six years. First Year of Negative Net absorption Since 2009: The market witnessed (3.79 MSF) of absorption, relatively small in comparison to 2009 when it was (10.07 MSF). The four largest deals in 2016 were renewals or sale-leasebacks resulting in little impact to the absorption numbers. Demand in 2016 was Helped by Job Creation and Low Unemployment: Between November 2015 and November 2016, more than 61,000 new private sector jobs (a 1.6% increase) were added in New York City, higher than the 1.3% employment growth for New York State and on par with the 1.7% gain nationally during the same period. At 5.2%, New York City s unemployment rate through November 2016 was stable over the last 12 months. Sources: NYS Dept. of Labor, Colliers International Research 22

23 Current Office Market Statistics Market Inventory Availability Rate Average Asking Rent Midtown 236,122, % $82.39 Midtown Class A 203,429, % $85.09 Midtown Class B 28,101, % $60.09 Midtown South 165,618, % $67.81 Midtown South Class A 40,343, % $81.72 Midtown South Class B 84,916, % $66.04 Downtown 104,384, % $59.01 Downtown Class A 79,469, % $60.25 Downtown Class B 21,217, % $52.30 Manhattan 506,126, % $73.24 *Trophy designation is a subset of Class A 23

24 Yearly Comparison by Major Market Overall Availability Rates Class A Availability Rates 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% 10.7% 10.0% 10.7% 11.2% % 7.0% 7.9% 9.7% 12.3% 12.6% 11.7% 15.6% 10.3% 9.6% 10.0% 11.7% Midtown Midtown South Downtown Manhattan 20% 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% 11.0% 10.3% 11.3% 11.8% % 6.3% 6.4% 12.5% 13.6% 14.4% 13.3% 17.7% 11.2% 10.9% 11.3% 13.4% Midtown Midtown South Downtown Manhattan Overall Asking Rents Class A Asking Rents $90 $80 $70 $60 $50 $40 $30 $20 $82.39 $80.61 $74.78 $ $67.81 $66.07 $61.50 $55.32 $59.01 $57.63 $52.23 $48.60 $73.24 $71.50 $66.52 $60.46 $90 $80 $70 $60 $50 $40 $30 $20 $85.09 $83.37 $76.65 $ $82.39 $80.61 $74.78 $69.73 $60.25 $58.70 $54.10 $51.80 $78.19 $75.49 $70.48 $64.14 $10 $10 Midtown Midtown South Downtown Manhattan Midtown Midtown South Downtown Manhattan 24

25 Landlord Concessions by Year Tenant Improvements Free Rent C L A S S A PSF $70 $60 $50 $40 $30 $20 $10 Midtown Downtown $63.19 $65.92 $61.86 $63.10 $56.33 $58.72 $54.79 $48.82 $29.49 $37.68 $51.15 $ Months Midtown Downtown PSF Months C L A S S B $60 $50 $40 $30 $20 $10 $22.51 $36.45 $33.87 $26.80 $30.74 $29.46 $35.21 $32.37 $37.81 Midtown Downtown Midtown South $47.93 $25.27 $49.61 $47.49 $32.16 $48.98 $46.50 $45.10 $ Midtown Downtown Midtown South

26 Asking Rent vs. Starting Rent 4Q16 3Q16 4Q15 16% 14% 14.4% Starting Rent vs. Asking Rent Gap 12% 10% 8% 6% 4% 10.5% 7.2% 9.5% 7.4% 7.6% 7.3% 4.4% 2% 3.3% 0% Midtown Midtown South Downtown 26

27 Historical Absorption and Leasing Activity Absorption Leasing Activity 10.M 40M Midtown Downtown Midtown South 10 Year Rolling Average: 29.0 MSF 8.M 6.M 8.44M 35M 30M Square Feet 4.M 2.M.M -2.M 1.92M.45M 4.25M -3.85M Square Feet 25M 20M 15M 10M 5M -4.M M 27

28 Midtown Class A Asking Rent Adjusted for Inflation (CPI) $100 $95.00 $93.05 $90 $85.09 $80 $70 $66.39 $60 $50 $48.19 $ Recorded Asking Rent CPI Adjusted 2000 Rent 28

29 Midtown and Downtown Class A Asking Rents $100 Midtown Downtown : rent increase : rent decrease Midtown: +86% Downtown: +65% Midtown: -33% Downtown: -21% : rent increase Midtown: +41% Downtown: +52% $90 $80 $70 Asking Rent ($/SF) $60 $50 $40 $30 $20 $10 29

30 Leases greater than 100,000 SF RENEWALS 4,540,954 SF 3 EXPANSIONS 487,434 SF 45 10,689,463 SF 22 4,919,181 SF TRANSACTIONS NEW/RELOCATIONS 40 7,986,934 SF 26 4,432,353 SF 7 RENEWALS 1,403,640 SF 0 EXPANSIONS 0 SF 4 RENEWAL & EXPANSIONS 741,894 SF 23 5,770,282 SF RENEWALS & EXPANSIONS 14 3,554,581 SF 7 RENEWAL & EXPANSIONS 2,150,941 SF 30

31 Leasing Activity MANHATTAN CAPITAL MARKETS 5,000-14,999 SF 15,000-24,999 SF 25,000-49,999 SF 50,000-99,999 SF 100,000 SF+ 11% 15% 4% 3% 4% 3% 13% 13% 32% 15% 16% By Number of Deals 62% 67% 17% By Share of Activity 25% *Excludes deals under 5,000 SF. 31

32 Taking Rents 250 $ $99.99 $ $ $ Number of Deals

33 Colliers New York Capital Markets Contact Information Richard Baxter Vice Chairman Yoron Cohen Vice Chairman Scott Latham Vice Chairman Stephen Shapiro Senior Managing Director Jason Gold Senior Managing Director