Finishing on a High Note

Transcription

1 Research & Forecast Report SUBURBAN CHICAGO OFFICE Fourth Quarter Finishing on a High Note Ronna Larsen Senior Research Manager Suburban Chicago Despite spending much of with negative absorption, the Chicago suburban office market ended the year strong. Twenty-five new lease transactions greater than 25,000 square feet occurred in the Chicago suburban office market in compared to 19 transactions in. Many of these leases will commence in the first and second quarters of Trends Investment and user sale velocity continued in the suburban office market as eight assets traded hands in the fourth quarter of, and four are currently under contract. Notable transactions in the fourth quarter included Blackstone Group s 622,287-square-foot sale of Central Park of Lisle to Lincoln Property, Long Warf Real Estate Partner s 525,422-square-foot sale of One Pierce Place and 450,614-square-foot sale of 500 Park Boulevard in Itasca to Balfour Pacific Capital, and Blackstone Group s 256,143-square-foot sale of One Parkway North in Deerfield to North Parkway Investments. LLC. Mid-sized tenants continue to offer the most relocation potential. There are currently 93 tenants with needs ranging from 10,000 to 150,000 square feet that are actively seeking space throughout the suburban office market, 45 percent of them showing interest in the East-West market. Demand for quality continued throughout the suburbs, especially in the O Hare and Oak Brooks markets, as well-capitalized owners in the suburbs remain focused on building improvements to attract and retain high-quality office tenants with increased amenities such as structured parking, power to accommodate the modern tenant, employee wellness / fitness centers, game rooms, food service, tenant lounges, conference centers and outdoor spaces to cater to the modern workforce. Vacancy Overall vacancy in the suburban office market dropped to 20.9 percent in, down from 21.5 percent at the end of. While the North market continued to struggle at the end of, the rest of the suburban office markets witnessed improvement. The O Hare market witnessed the strongest decease, dropping 3.5 percent from year-end. Market Indicators Relative to prior periods Q4-16 Q3-17 Q4-17 Vacancy rate 21.5% 21.6% 20.9% Absorption (YTD) (1,127,314) (82,018) 790,303 Rents $20.51 $20.60 $20.81 Inventory 112,907, ,907, ,907,910 Unemployment (not seasonally adjusted) Q4-16 Q4-17 Chicago 5.5% 4.7% Illinois 5.7% 4.9% US 4.8% 4.1% Class A Large Blocks of Space The majority of the decrease derived from Class A properties as it ended with 21.2 percent compared to 22.2 percent at the end of. Vacancy will continue to decline heading into 2018 as larger tenants such as Abbott, American Academy of Dermatology and NEC Display Solutions, begin moving into their new spaces. Absorption 20,000 SF+ 50,000 SF+ 100,000 SF+ 200,000 SF+ 300,000 SF+ O'Hare Northwest North Lisle-Naperville Oak Brook Total Overall net absorption ended at positive 790,303 square feet, a vast improvement from negative 1,127,314 square feet reported in the previous year.

2 While both Class A and B product witnessed improvement, Class A properties were the strongest, ending with positive 668,123 square feet. Large Blocks of Availability There are currently 44 properties in the suburban office market that can accommodate users 100,000 square feet and larger, with 31 of those properties being Class A. Large blocks of space in the O Hare and Oak Brook markets are slim, while the Northwest market offers the most options. Rents Net Absorption and Vacancy Suburban Office Market Overall Suburban Office 1,000, , , % 0 (500,000) (1,000,000) (1,500,000) 631, % 790, , % (192,031) 20.8% 20.9% 20.5% (1,127,314) % 21.4% 21.2% 21.0% 20.8% 20.6% 20.4% Average Class A asking rents increased in, rising to $29.22 per square foot gross, up from $28.69 per square foot gross at year-end. The average asking rent for all classes in suburban Chicago ended at $20.81 per square foot gross, up from s rate of $20.51 per square foot. Construction While there hasn t been any speculative construction delivered since 2010, and none is expected throughout 2018, build-tosuit activity continues within the suburban market. Projects include Central States Funds 150,000 square foot build-tosuit development at 8655 W Higgins Road in Chicago, and McShane Development Company / MetLife Real Estate Investors Huntington 90 development, a build-to-suit business park in Hoffman Estates. In addition, American Academy of Pediatrics 193,000-square-foot build-to-suit property in Itasca was completed in the fourth quarter of. What to Expect in 2018 > > As Class A properties stabilize we expect to see a rise in properties being offered for sale. However, refinancing will continue to be seriously considered as interest rates remain low and lenders aggressively work to place debt on stabilized assets. > > Expect to see well located, higher quality Class B assets attempt to renovate and add amenities in an effort to reclassify into amenity rich Class B or top of the Class B. > > Vacancies will continue to decrease as the market absorbs space with no new speculative projects underway. > > The perceived migration of companies into the CBD will turn attention toward the suburban market as more millennials consider moving out of the city. > > We will begin seeing demolition and redevelopment of functionally obsolete Class C buildings. Source: Costar;Colliers International Research Absorption Vacancy Submarket Vacancy Rates - Vacancy (%) % 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% -5.0% 25.2% 22.3% 22.9% 22.8% 23.0% 22.1% 22.5% 20.3% 20.1% 19.4% 19.1% 17.9% 18.5% 18.0% 15.0% O'Hare Northwest North Lisle/Naperville Oak Brook Source: Costar;Colliers International Research Asking Gross Rental Rates $35.00 $30.00 $25.00 $20.00 $15.00 $10.00 $5.00 $ Source: Costar;Colliers International Research Class A Class B Class C Average 2 Research & Forecast Report Fourth Quarter Suburban Chicago / Office Colliers International

3 Tenants In The Market Active Requirements HARVARD MCHENRY Northwest 1,071,000 SF GURNEE North 490,000 SF GRAYSLAKE WAUKEGAN NORTH CHICAGO NORTH miles MARENGO HUNTLEY East-West 1,806,000 SF CRYSTAL LAKE SLEEPY HOLLOW ELGIN Elgin-O'Hare Expy. 20 East-West Tollway ROLLING MEADOWS ARLINGTON 53 HEIGHTS CAROL STREAM ADDISON ST. CHARLES 355 KANE CO. KENDALL CO. CARY BATAVIA KANE CO. DuPAGE CO. KANE CO. McHENRY CO. WEST CHICAGO 59 BARRINGTON WAUCONDA HOFFMAN ESTATES HANOVER PARK 53 SCHAUMBURG LOMBARD ELK GROVE VILLAGE AURORA NAPERVILLE LISLE DOWNERS GROVE WILL CO. LAKE ZURICH LAKE CO. COOK CO. COOK CO. DuPAGE CO. ITASCA 88 LIBERTYVILLE VERNON HILLS 45 Lake Cook Rd BUFFALO GROVE MOUNT PROSPECT ELMHURST OAKBROOK WOODRIDGE 294 HINSDALE 94 PALWAUKEE FIELD 21 O'HARE INTERNATIONAL AIRPORT DuPAGE CO. BURR RIDGE COOK CO. LINCOLNSHIRE MELROSE PARK OAK PARK 45 DEERFIELD NORTHBROOK FRANKLIN PARK 290 LAKE FOREST BROADVIEW 43 McCOOK 55 HIGHLAND PARK GLENVIEW CICERO BEDFORD PARK 50 WINNETKA WILMETTE SKOKIE ROSEMONT O Hare 355,000 SF CHICAGO MIDWAY AIRPORT EVANSTON Lake Michigan KENDALL CO. WILL CO. PLAINFIELD BOLINGBROOK WILL CO. ROMEOVILLE COOK CO. COOK CO. WILL CO. O. O. ORLAND PARK ALSIP IS A HAMMOND GAR The velocity of small and mid-size tenants in the market continues to rise in the Suburban Office Market. There are currently 58 tenants in the suburbs looking for space 25,000 square-feet or greater. 3 Research & Forecast Report Fourth Quarter Suburban Chicago / Office Colliers International

4 Significant Lease and Sale Activity Top Suburban Office Leasing Activity 4Q TENANT BUILDING TOWN SUBMARKET CLASS SIZE (SF) DEAL TYPE NEC Display Solutions Esplande V Downers Grove OB A 48,000 New Abbott Landmark of Lake Forest Lake Forest N A 43,000 New AIM Specialty Health Presidents Plaza Chicago O A 41,000 New American Academy of Dermatology O'Hare Gateway Office Center Rosemont O A 41,000 New Northwestern University* Evanston MetroCenter Evanston N A 41,000 Expansion Batory Foods O'Hare International Center Rosemont O A 28,000 New Atlantic Power Services* Esplande V Downers Grove OB A 21,500 Sublease American Eagle Regency Office Plaza Des Plaines O B 19,000 New *Colliers International Transaction Recent Suburban Office Investment Sales Activity 4Q STATUS PROPERTY TOWN SUBMKT CLASS SIZE (SF) SALE PRICE PRICE/SF BUYER SELLER Central Park of Lisle Lisle LN A 622,287 $129,000, $ Lincoln Property The Blackstone Group One Pierce Place Itasca NW A 525,422 $44,022, $89.79 Balfour Pacific Capital Long Wharf Real Estate Partners 500 Park Boulevard Itasca NW A 450,614 $34,277, $76.07 Balfour Pacific Capital Hamilton Partners One Parkway North Deerfield N A 256,143 $47,000, $ North Parkway Investment, LLC Blackstone Group Chatham Centre Schaumburg NW A 205,614 $13,375, $65.05 Core Acquisitions LLC Barnes Real Estate Advisors 711 Jorie Boulevard Oak Brook OB B 200,162 $14,450, $72.19 Exeter Property Group McDonalds Corporation Woodland Corporate Tower Downers Grove OB A 183,619 $12,100, $65.90 Stanton Road Capital, LLC Westport Capital Partners, LLC 701 E 22nd Street Lombard OB A 174,097 $23,400, $ Lincoln Property M & J Wilcow 6300 N River Road Rosemont O B 138,744 Undisclosed Undisclosed Village of Rosemont Bannockburn Lake Office V Bannockburn N A 103,500 $6,300, $60.87 GlenStar Properties Ameritus Real Estate Fund New New Centerpoint Northbrook Business Campus 1250 N Arlington Heights Rd Northbrook N B 220,000 TBD TBD TBD Walgreens Itasca NW A 130,934 TBD TBD TBD Hamilton Partners New 700 N Wood Dale Road Wood Dale NW B 125,523 TBD TBD TBD UBS Realty Investors, LLC New 225 Windsor Drive Itasca NW A 101,579 TBD TBD TBD Enesco New Fountain Square Building Evanston N B 52,398 TBD TBD TBD Mavakis Properties UC Fifth/Third Bank Building Mount Prospect NW A 103,564 TBD TBD TBD K & K Holdings, LLC UC Patriot Corporate Center Downers Grove OB B 92,514 TBD TBD TBD Patriot Equities UC Commerce Center at O'Hare Des Plaines O B 69,500 TBD TBD TBD Lutheran Social Services of Illinois UC Midwest Plaza North Oak Brook OB B 50,505 TBD TBD TBD Group Fox LN=Lisle/Naperville N=North NW=Northwest OB=Oak Brook Area O=O Hare NEW=New to Market UC=Under Contract 4 Research & Forecast Report Fourth Quarter Suburban Chicago / Office Colliers International

5 O Hare Despite being the smallest of the suburban office markets, O Hare continues to attract corporate users due to convenient access to highways and public transportation and proximity to O Hare International Airport. When companies, particularly national firms, are faced with consolidating locations in the Metropolitan Chicago area, they typically give strong consideration to the O Hare market as it is well suited for regional operations and its location is ideal for serving virtually any suburban market. Vacancy At 15.0 percent overall vacancy, the O Hare market is the strongest of all the suburban office markets, dropping 3.5 percentage points from the 18.5 percent vacancy it witnessed at year-end. Class A vacancy continued to improve, ending the year at 11.4 percent, down from 13.7 percent at the end of. A significant contributor to the drop in Class A vacancy is US Cellular Plaza which had120,000 square feet of space occupied in the fourth quarter. As Class A options become limited, Class B properties are now being saught, as its vacancy continued to decline throughout, ending at 21.1 percent, compared to 26.9 percent at the end of. Sublease vacancy in the O Hare market continues to be slim ending at 0.4 percent, down from 0.6 percent at the end of. Absorption Absorption is strong in the O Hare market as it ended with 464,663 square feet of positive net absorption compared to negative 79,317 square feet at year-end. This marks the strongest yearend absorption in the O Hare market in more than 18 years. Both Class A and B properties witnessed improvement in. Large Blocks of Availability 500, , , , ,000 (100,000) (200,000) Market Indicators Relative to prior periods Q4-16 Q3-17 Q4-17 Vacancy rate 18.5% 17.2% 15.0% Absorption (YTD) (79,317) 172, ,663 Rents $21.34 $20.81 $21.15 Inventory 13,258,024 13,258,024 13,258,024 Vacant Space By Property Type 0 Class C 274,430 SF 15.3% Vacant 132, % Class B 4,813,404 SF 21.1% Vacant 65,848 Class A 8,170,190 SF 11.4% Vacant Class A Class B Class C Net Absorption and Vacancy O Hare Office Market 20.7% 208, % 174, % (79,317) 18.5% 464, % 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% Options for large space requirements in the O Hare market continue to be limited. There are currently only four properties that can accommodate large (100,000 square feet and above) users, three of which are Class A. Source: Costar;Colliers International Research Absorption Vacancy

6 Rents Class A rental rates in the O Hare market continue to be the highest among the suburban markets, increasing to $31.90 per square foot gross, compared to year-end, when it averaged $31.32 per square foot. The average asking rate for all classes decreased slightly, dropping to $21.15 per square foot gross, down from $21.34 per square foot gross at year-end. Construction No new speculative construction was completed in the O Hare market during. However, construction continues on the Elgin O Hare extension. The improved access to O Hare will reduce travel times to the airport as well as promote economic development in the O Hare and surrounding areas. Construction on The Pearl District, Rosemont s mixed-use development, continues with completion expected in Once completed, the new development will offer entertainment, two restaurants, a boutique hotel, and potential for office space. A new minor league baseball stadium is also under construction in Rosemont s entertainment district, with completion scheduled for In addition, construction is set to begin in early 2018 for Central States Funds 150,000-square-foot build-to-suit development at 8655 W Higgins Road in Chicago. Proposed projects include Pointe O Hare II, O Hare Corporate Campus and 8201 W Higgins Road, a 3.5-acre development in Chicago that is being marketed to both office and retail users. If completed, these projects could add 1.4 million square feet to the O Hare market. What to Expect in 2018 Asking Gross Rental Rates O Hare Office Market $35.00 $30.00 $25.00 $20.00 $15.00 $10.00 $5.00 $ W Bryn Mawr Avenue 5450 N Cumberland Avenue 6300 N River Road 5500 Pearl Street Tower Lane 999 E Touhy Avenue 1350 E Touhy Avenue 8550 W Bryn Mawr Avenue 4849 N Scott Street 1700 W Higgins Road 9450 W Bryn Mawr Avenue 2104 Source: Costar;Colliers International Research Class A Class B Class C Average Top 10 Large Available Blocks by Square Feet 59,711 58,310 53,427 46,065 36,791 35,184 86, , , ,235 CLASS A CLASS B 161,676 > > Vacancy will continue to improve throughout > > True Class A rental rates are expected to reach an all-time high. > > Class A and B buildings with large blocks over 50,000 will become increasingly limited. > > No significant multi-tenant construction is expected. Significant Lease and Sale Activity Top O Hare Office Leasing Activity 4Q TENANT BUILDING TOWN CLASS SIZE (SF) DEAL TYPE AIM Specialty Health Presidents Plaza Chicago A 41,000 New American Academy of Dermatology O'Hare Gateway Office Center Rosemont A 41,000 New Batory Foods O'Hare International Center Rosemont A 28,000 New American Eagle Regency Office Plaza Des Plaines B 19,000 New Recent O Hare Office Investment Sales Activity 4Q STATUS PROPERTY TOWN CLASS SIZE (SF) SALE PRICE PRICE/SF BUYER SELLER 6300 N River Road Rosemont B 138,744 Undisclosed Undisclosed Village of Rosemont UC Commerce Center at O'Hare Des Plaines B 69,500 TBD TBD TBD Lutheran Social Services of Illinois 6 Research & Forecast Report Fourth Quarter Suburban Chicago / Office Colliers International

7 Northwest The Northwest suburban office market has become home to an array of industries, making it one of the most diverse markets in the suburbs. While it has seen its share of struggles, it seems to be holding its own. Market Indicators Relative to prior periods Q4-16 Q3-17 Q4-17 Vacancy rate 25.2% 24.0% 22.9% Absorption (YTD) (861,531) 366, ,586 Rents $18.59 $19.02 $19.47 Inventory 30,577,955 30,577,955 30,577,955 Vacancy The Northwest market continued its decrease in vacancy throughout, ending with 22.9 percent vacancy, down from 25.2 percent at year-end. Both Class A and B properties witnessed a decrease in vacancy in. When considering high quality, trophy properties, vacancy is currently 29.0 percent. However, a significant portion of that vacancy is concentrated in two large blocks of vacant space: 470,000 square feet at the former Zurich Insurance headquarters, which is now being redeveloped as Schaumburg Towers and at Two Pierce Place and 2550 W Golf Road in Rolling Meadows where AJ Gallagher vacated their long-time headquarters at Two Pierce Place in Itasca after their relocation to their new 300,000-square-foot headquarters in Rolling Meadows. A large majority of the space in both properties are expected to be absorbed over the next 12 months bringing the trophy property vacancy within the typical range seen in the other submarkets of 10 to 12 percent. Sublease vacancy remains low in the Northwest with 0.8 percent vacancy, up slightly from 0.6 percent at year-end. Absorption The Northwest market ended with positive 706,586 square feet of net absorption, compared to negative 861,531 square feet at year end of. This is the strongest year-end absorption in a 13 year period. In Class A properties, absorption totaled positive 454,262 square feet for the year, up from negative 775,540 square feet of absorption in. Vacant Space By Property Type Class C 1,433,184 SF 13.8% Vacant Class B 10,346,942 SF 25.4% Vacant Class A 18,797,829 SF 22.2% Vacant Class A Class B Class C Net Absorption and Vacancy Northwest Office Market 800, , , ,000 0 (200,000) (400,000) (600,000) (800,000) (1,000,000) 43, % 334, % Source: Costar;Colliers International Research 334, % Absorption (64,365) 22.3% Vacancy (861,531) 25.2% 706, % 25.5% 25.0% 24.5% 24.0% 23.5% 23.0% 22.5% 22.0% 21.5%

8 Large Blocks of Availability The Northwest market continues to offer the most options for large space requirements with 17 properties that can accommodate large (100,000 square feet and above) users, 10 of them being Class A. However, many of the large blocks of A & B space are obsolete. Rents The Northwest market continues to offer the lowest rental rates in the suburban office markets. However, it did increase in as Class A average asking rates measured $25.21 per square foot gross, up from year-end s rate of $ The average asking rate for all classes measured $19.47 per square foot gross, up from $18.59 at the end of. Asking Gross Rental Rates Northwest Office Market $35.00 $30.00 $25.00 $20.00 $15.00 $10.00 $5.00 $ Source: Costar;Colliers International Research Class A Class B Class C Average Construction No new speculative construction was completed in the Northwest market during. However, construction was recently completed on American Academy of Pediatrics 193,000-square-foot build-to-suit headquarters at 345 Park Boulevard in Itasca. In addition, McShane Development Company and MetLife Real Estate Investors are planning Huntington 90, a build-to-suit business park in Hoffman Estates, which can accommodate up to 500,000-square-foot facilities as well as the Offices at Veridian, a 16-acre redevelopment site on the former Motorola campus that can accommodate a user up to 500,000 square feet. What to Expect in 2018 > > Continued flight to quality into several Class A projects undergoing significant renovations. Schaumburg Towers leading the pack. > > Value add sale opportunities in Class A market will be replaced with quality Class B opportunities. > > High end build-to-suit activity will continue along I-90 with the infrastructure improvements opening up access to further west land sites. Significant Lease and Sale Activity Top Northwest Office Leasing Activity 4Q Top 10 Large Available Blocks by Square Feet 1400 & 1450 American Lane 1301 E Algonquin Road 360, W Golf Road 260, W Northwest Highway 253, N Randall Road 202, Beverly Road 201, E Woodfield Road 192, N Martingale Road 172, Lake Cook Road 145, Big Timber Road 127, ,509 CLASS A CLASS B TENANT BUILDING TOWN CLASS SIZE (SF) DEAL TYPE No Significant 4Q Activity Recent Northwest Office Investment Sales Activity 4Q STATUS PROPERTY TOWN CLASS SIZE (SF) SALE PRICE PRICE/SF BUYER SELLER One Pierce Place Itasca A 525,422 $44,022, $89.79 Balfour Pacific Capital Long Wharf Real Estate Partners 500 Park Boulevard Itasca A 450,614 $34,277, $76.07 Balfour Pacific Capital Hamilton Partners Chatham Centre Schaumburg A 205,614 $13,375, $65.05 Core Acquisitions LLC Barnes Real Estate Advisors New 1250 N Arlington Heights Rd Itasca A 130,934 TBD TBD TBD Hamilton Partners New 700 N Wood Dale Road Wood Dale B 125,523 TBD TBD TBD UBS Realty Investors, LLC New 225 Windsor Drive Itasca A 101,579 TBD TBD TBD Enesco UC Fifth/Third Bank Building Mount Prospect A 103,564 TBD TBD TBD K & K Holdings, LLC 8 Research & Forecast Report Fourth Quarter Suburban Chicago / Office Colliers International

9 North Home to many large corporate occupiers, The North market has primarily attracted tenants for its low Lake County tax rate and its proximity to Downtown Chicago. As some of these larger corporate users began to consolidate operations, the North market suffered its largest vacancy in decades. While it has made some progress in recent quarters, the North market continues to ebb and flow as it makes its way toward recovery. Vacancy The North market ended with 22.8 percent overall vacancy, up from 20.3 percent reported at the end of. However, it showed improvement over mid-year s total of 23.3 percent. Market Indicators Relative to prior periods Q4-16 Q3-17 Q4-17 Vacancy rate 20.3% 22.9% 22.8% Absorption (YTD) (265,401) (742,884) (713,023) Rents $21.96 $22.17 $21.80 Inventory 28,725,810 28,725,810 28,725,810 Vacant Space By Property Type Class C 1,105,737 SF 26.9% Vacant Class B 8,916,165 SF 14.8% Vacant Class A 18,703,908 SF 26.4% Vacant Vacancy in Class A properties witnessed the largest increase rising to 26.4 percent, up from 23.6 percent at the end of. The increase is primarily due to large users consolidating their space. This is expected to continue headed into 2018 as larger companies such as Walgreens and Takeda announced downsizing their corporate campuses. However, when considering high quality, trophy properties in the North market, vacancy is substantially lower at 12.9 percent. Absorption The North market ended with 713,123 square feet of negative net absorption, compared to 265,401 square feet of negative net absorption at year-end. Negative absorption is primarily due to AON vacating 1000 Milwaukee Avenue, a 405,039-square-foot building in Glenview. 800, , , ,000 0 (200,000) (400,000) (600,000) (800,000) (1,000,000) (1,200,000) Class A Class B Class C Net Absorption and Vacancy North Office Market 613, % 21.5% 20.3% 151, , % 18.2% 17.8% (265,401) (713,023) (1,080,490) % 20.0% 15.0% 10.0% 5.0% 0.0% Class A absorption in the North market ended with negative 530,313 square feet of net absorption, compared to year-end s total of negative 278,882 square feet. Source: Costar;Colliers International Research Absorption Vacancy

10 Large Blocks of Availability There are nine blocks of space available for large-sized tenants (100,000 square feet and above) in the North market, with eight of them being Class A. However, when considering high quality, true Class A properties at quality locations, options are very limited. Rents Average Class A gross asking rent in the North market increased to $31.31 per square foot gross, compared to $30.13 per square foot gross at the end of. The average gross asking rate for all classes decreased slightly in to $21.80 per square foot gross, compared to $21.96 at the end of. Asking Gross Rental Rates North Office Market $35.00 $30.00 $25.00 $20.00 $15.00 $10.00 $5.00 $ Source: Costar;Colliers International Research Class A Class B Class C Average Construction No new speculative construction was completed in the North market during and none is expected for Top 10 Large Available Blocks by Square Feet 600 N US Highway ,091 There are a few sites available for future build-to-suit projects in the North market, including Quadrangle Development s 250,000-square-foot project in Deerfield. What to Expect in 2018 > > Tightening of Class A vacancy will drive the Class B market to lower vacancy. > > Large-block Class A availabilities over 50,000 square feet will decrease Milwaukee Avenue 2 Overlook Point 3100 Sanders Road 300 Tower Parkway Knightsbridge Pky 300 N Field Drive 3600 W Lake Avenue 2355 Waukegan Road 405, , , , , , , ,115 CLASS A CLASS B > > Redevelopment activity of existing properties will increase in an effort to add amenities and modernize the workplace to attract tenants. 440 N Fairway Drive 99,579 Significant Lease and Sale Activity Top North Office Leasing Activity 4Q TENANT BUILDING TOWN CLASS SIZE (SF) DEAL TYPE Abbott Landmark of Lake Forest Lake Forest A 43,000 New Northwestern University* Evanston MetroCenter Evanston A 41,000 Expansion *Colliers International Transaction Recent North Office Investment Sales Activity 4Q STATUS PROPERTY TOWN CLASS SIZE (SF) SALE PRICE PRICE/SF BUYER SELLER One Parkway North Deerfield A 256,143 $47,000, $ North Parkway Investment, LLC Blackstone Group Bannockburn Lake Office V Bannockburn A 103,500 $6,300, $60.87 GlenStar Properties Ameritus Real Estate Fund New Centerpoint Northbrook Business Campus Northbrook B 220,000 TBD TBD TBD Walgreens New Fountain Square Building Evanston B 52,398 TBD TBD TBD Mavakis Properties 10 Research & Forecast Report Fourth Quarter Suburban Chicago / Office Colliers International

11 Lisle-Naperville The Lisle-Naperville market, known for attracting technology tenants with newer construction and bigger floor plates, suffered a setback in as available space rose due to the merger and relocation activities of large tenants. Market Indicators Relative to prior periods Q4-16 Q3-17 Q4-17 Vacancy rate 23.0% 22.7% 22.5% Absorption (YTD) (155,087) 50,427 73,577 Rents $20.68 $20.69 $21.02 Inventory 16,849,112 16,849,112 16,849,112 Vacancy Vacant Space By Property Type Vacancy in the Lisle-Naperville continued to decline throughout, ending at 22.5 percent compared to 23.0 percent at the end of. Class A assets were responsible for the majority of the decrease as it dropped to 23.5 percent versus 25.4 percent at the end of. When considering high quality, trophy properties, vacancy is substantially lower, ending at 8.7 percent, compared to 11.0 percent at the end of. While, sublease vacancy in Lisle-Naperville remains the highest of all the suburban markets, it too witnessed improvement as it dropped to 3.9 percent in compared to 4.4 percent at the end of. Class C 835,537 SF 8.2% Vacant Class B 6,570,722 SF 23.1% Vacant Class A 9,442,853 SF 23.5% Vacant Absorption The Lisle-Naperville market ended with 73,577 square feet of positive net absorption, compared to negative 155,087 square feet at year-end. Despite Class B properties ending on a negative note, Class A properties were strong, ending the year with 185,975 square feet of positive net absorption, compared to negative 310,709 square feet reported at the end of. Large Blocks of Availability Eleven properties in the Lisle-Naperville market can accommodate large (100,000 square feet and above) users, eight of them being Class A. However, when considering high-quality, true Class A assets, there are only two options. Class A Class B Class C Net Absorption and Vacancy Lisle-Naperville Office Market Lisle/Naperville Submarket 200, % 73, % 76, % 100, % 45,539 33, % % 19.0% 18.5% (100,000) 15.0% (200,000) (155,087) 10.0% (300,000) (400,000) 5.0% (500,000) (494,175) (600,000) 0.0% 2014 Source: Costar;Colliers International Research Absorption Vacancy

12 Rents The average Class A asking rent in the Lisle-Naperville market measured $28.20 per square foot gross at the end of, down slightly from $28.00 per square foot in the fourth quarter of. The average asking rate for all classes also increased to $21.02 per square foot gross, up from $20.68 at the end of. Construction While no new speculative construction was completed in the Lisle-Naperville market during and none is slated for 2018, developers continue to seek locations for build-to-suit opportunities. What to Expect in 2018 > > Vacancy will decrease throughout > > True Class A asking rates are expected to reach an all-time high in > > Build-to-suit activity will increase in 2018 as speculative development will remain non-existent. > > We will see an increase in large transactions, 50,000 square feet and greater throughout Asking Gross Rental Rates Lisle-Naperville Office Market $35.00 $30.00 $25.00 $20.00 $15.00 $10.00 $5.00 $0.00 Top 10 Large Available Blocks by Square Feet *6200 S Route Shuman Boulevard 4201 Winfield Road 2400 Cabot Drive 750 N Commons Boulevard 215 W Diehl Road 1100 E Warrenville Road 2441 Warrenville Road Ferry Road 1415 W Diehl Road 2104 Source: Costar;Colliers International Research Class A Class B Class C Average 106, , , , , , , , , ,000 CLASS A CLASS B *Sublease Significant Lease and Sale Activity Top Lisle-Naperville Office Leasing Activity 4Q TENANT BUILDING TOWN CLASS SIZE (SF) DEAL TYPE No Significant 4Q Activity Recent Lisle-Naperville Office Investment Sales Activity 4Q STATUS PROPERTY TOWN CLASS SIZE (SF) SALE PRICE PRICE/SF BUYER SELLER Central Park of Lisle Lisle A 622,287 $129,000, $ Lincoln Property The Blackstone Group 12 Research & Forecast Report Fourth Quarter Suburban Chicago / Office Colliers International

13 Oak Brook The Oak Brook market, which typically attracts smaller tenants in the 10,000- to 20,000-square-foot range and benefits from steady leasing velocity, continues to show improvement due to the impact of Class A leasing near Oakbrook Center Mall. Market Indicators Relative to prior periods Q4-16 Q3-17 Q4-17 Vacancy rate 19.1% 18.8% 18.0% Absorption (YTD) 234,022 72, ,500 Rents $20.01 $20.29 $20.64 Inventory 23,497,009 23,497,009 23,497,009 Vacancy The Oak Brook market ended with an overall vacancy rate of 18.0 percent, reaching a 10-year low. While Class B properties increased in vacancy, rising to 19.5 percent from 18.3 percent at the end of, Class A assets have witnessed a significant decrease in vacancy, dropping to 16.9 percent compared to 19.7 percent at year-end. When considering high quality, trophy properties in the Oak Brook market, vacancy is lower, ending the quarter at 12.5 percent. Vacant Space By Property Type Class C 919,842 SF 17.6% Vacant Class B 9,084,568 SF 19.5% Vacant Class A 13,492,599 SF 16.9% Vacant Sublease vacancy rose slightly, ending at 1.8 percent versus 1.3 percent at the end of. Absorption The Oak Brook market ended with 258,500 square feet of positive net absorption, compared to 234,022 square feet of positive net absorption at year-end. Class A assets were responsible for the bulk of the improvement, ending with 371,770 square feet of positive net absorption, compared to negative 142,995 square feet of net absorption at yearend. Class A Class B Class C Net Absorption and Vacancy Oak Brook Office Market Oak Brook Submarket 500, % 401, , % 21.7% 20.1% 300, , % 258, , % 200, , % 20.0% 15.0% Large Blocks Of Availability The Oak Brook market offers limited options for large space requirements. Only three properties in the Oak Brook market can accommodate large (100,000 square feet and above) users, two of them being Class A. 0 (42,658) (100,000) (200,000) (199,815) (300,000) Source: Costar;Colliers International Research 2014 Absorption Vacancy 10.0% 5.0% 0.0%

14 Rents Class A average asking rent in the Oak Brook market measured $29.47 per square foot gross at the end of, up from $29.27 per square foot gross at year-end. The average asking rate for all classes totaled $20.64 per square foot gross, up from $20.01 per square foot gross at year-end. Construction No new construction was completed in the Oak Brook market during. However, build-to-suit activity continues as HUB Group is in the process of obtaining zoning rights to construct a new building on York Road next to its existing site for expansion, and Ryan Companies is planning a redevelopment of 700 Oakmont in Westmont. Asking Gross Rental Rates Oak Brook Office Market $35.00 $30.00 $25.00 $20.00 $15.00 $10.00 $5.00 $ Source: Costar;Colliers International Research Class A Class B Class C Average What to Expect in 2018 > > Demand for quality Class A properties will continue throughout > > True Class A asking rates are expected to reach an all-time high in > > Build-to-suit activity will increase in 2018 as speculative development will remain non-existent. > > Investment sales will continue at a steady pace throughout Top 10 Large Available Blocks by Square Feet 700 Oakmont Lane *2707 Butterfield Road 120, Highland Parkway 95, E 22nd Street 95, Burr Ridge Parkway 90,000 4 Westbrook Corporate Center 81, Finley Road 78, Comerce Drive 74,917 CLASS A CLASS B 256, Highland Parkway 1400 Opus Place 74,319 69,377 *Sublease Significant Lease and Sale Activity Top Oak Brook Office Leasing Activity 4Q TENANT BUILDING TOWN CLASS SIZE (SF) DEAL TYPE NEC Display Solutions Esplande V Downers Grove A 48,000 New Atlantic Power Services* Esplande V Downers Grove A 21,500 Sublease *Colliers International Transaction Recent Oak Brook Office Investment Sales Activity 4Q STATUS PROPERTY TOWN CLASS SIZE (SF) SALE PRICE PRICE/SF BUYER SELLER 711 Jorie Boulevard Oak Brook B 200,162 $14,450, $72.19 Exeter Property Group Woodland Corporate Tower Downers Grove A 183,619 $12,100, $65.90 Stanton Road Capital, LLC McDonalds Corporation Westport Capital Partners, LLC 701 E 22nd Street Lombard A 174,097 $23,400, $ Lincoln Property M & J Wilcow UC Patriot Corporate Center Downers Grove B 92,514 TBD TBD TBD Patriot Equities UC Midwest Plaza North Oak Brook B 50,505 TBD TBD TBD Group Fox 14 Research & Forecast Report Fourth Quarter Suburban Chicago / Office Colliers International

15 Fourth Quarter Office Market Statistics Local Standards CLASS O HARE BLDGS TOTAL INVENTORY SF DIRECT VACANCY RATE SUBLEASE VACANCY RATE VACANCY RATE CURRENT QTR VACANCY QUARTERLY NET RATE PRIOR ABSORPTION SF QTR NET YTD ABSORPTION SF COMPLETIONS CURRENT QTR - SF UNDER CONSTRUCTION - SF Class A 37 8,170, % 0.6% 11.4% 14.0% 208, , $31.90 Class B 47 4,813, % 0.2% 21.1% 23.0% 91, , $19.24 Class C 8 274, % 0.0% 15.3% 11.6% (10,200) (1,354) 0 0 $12.30 Subtotal 92 13,258, % 0.4% 15.0% 17.2% 290, , $21.15 NORTHWEST Class A 88 18,797, % 0.9% 22.2% 23.6% 271, , $25.21 Class B ,346, % 0.3% 25.4% 26.2% 86, , $17.34 Class C 29 1,433, % 2.7% 13.8% 12.5% (18,256) (23,870) 0 0 $15.85 Subtotal ,577, % 0.8% 22.9% 24.0% 340, , $19.47 NORTH Class A ,703, % 1.2% 26.4% 26.3% (19,335) (530,315) 0 0 $31.31 Class B 147 8,916, % 2.0% 14.8% 15.4% 53,265 (89,810) 0 0 $18.29 Class C 28 1,105, % 1.7% 26.9% 26.6% (4,069) (92,898) 0 0 $15.80 Subtotal ,725, % 1.5% 22.8% 22.9% 29,861 (713,023) 0 0 $21.80 LISLE/NAPERVILLE Class A 54 9,442, % 2.5% 23.5% 23.9% 37, , $28.22 Class B 121 6,570, % 6.4% 23.1% 22.8% (16,114) (121,265) 0 0 $18.53 Class C , % 0.0% 8.2% 8.5% 2,209 8, $16.30 Subtotal ,849, % 3.9% 22.5% 22.7% 23,150 73, $21.02 OAK BROOK Class A 69 13,492, % 0.8% 16.9% 18.3% 177, , $29.47 Class B 143 9,084, % 3.4% 19.5% 19.7% 18,641 (112,954) 0 0 $18.69 Class C , % 0.0% 17.6% 16.6% (9,441) (316) 0 0 $13.77 Subtotal ,497, % 1.8% 18.0% 18.8% 186, , $20.64 SUBURBAN TOTAL Class A ,607, % 1.1% 21.2% 22.2% 675, , $29.22 Class B ,731, % 2.4% 20.8% 21.3% 234, , $18.42 Class C 107 4,568, % 1.3% 16.8% 15.9% (39,757) (109,571) 0 0 $14.80 Subtotal 1, ,907, % 1.6% 20.9% 21.6% 869, , $20.81 QUARTERLY COMPARISON AND TOTALS Q4-17 1, ,907, % 1.6% 20.9% 21.6% 869, , $20.81 Q3-17 1, ,907, % 1.4% 21.6% 21.7% 140,255 (82,018) 0 0 $20.60 Q2-17 1, ,907, % 1.4% 21.7% 21.5% (311,931) (224,343) 0 0 $20.77 Q1-17 1, ,907, % 1.3% 21.5% 21.5% 87,588 87, $20.91 Q4-16 1, ,907, % 1.4% 21.5% 21.0% (618,326) (1,127,314) 0 0 $20.51 RENTS *AT&T Corporate Campus in Hoffman Estates has been excluded from stats. 15 Research & Forecast Report Second Quarter Suburban Chicago / Office Colliers International

16 Fourth Quarter Office Market Statistics Includes Owner Occupied Properties CLASS O HARE BLDGS TOTAL INVENTORY SF DIRECT VACANCY RATE SUBLEASE VACANCY RATE TOTAL VACANCY RATE CURRENT QTR TOTAL VACANCY RATE PRIOR QTR QUARTERLY NET ABSORPTION SF NET YTD ABSORPTION SF COMPLETIONS CURRENT QTR - SF Class A 41 8,581, % 0.8% 11.1% 13.5% 208, , Class B 62 5,512, % 0.1% 23.2% 24.0% 42, , Class C , % 0.0% 5.8% 5.1% (4,145) 7, Subtotal ,750, % 0.5% 15.4% 17.0% 247, , NORTHWEST Class A ,481, % 0.7% 25.2% 26.3% 407, , ,000 0 Class B ,929, % 0.3% 21.4% 21.4% 589 (119,040) 0 0 Class C 63 2,275, % 1.7% 14.6% 13.8% (17,946) 6, Subtotal ,686, % 0.6% 23.1% 23.7% 389, , ,000 0 NORTH Class A ,925, % 0.9% 22.1% 22.1% (4,369) (583,977) 0 0 Class B ,447, % 0.8% 7.9% 8.4% 88, , Class C 61 2,079, % 0.9% 16.4% 16.6% 3,834 (69,449) 0 0 Subtotal ,452, % 0.9% 15.5% 15.7% 87,989 (284,272) 0 0 LISLE/NAPERVILLE Class A 66 12,665, % 1.9% 17.6% 17.9% 37, , Class B ,334, % 3.8% 15.5% 17.5% 228, , Class C 51 1,631, % 0.0% 7.2% 7.2% (478) 33, Subtotal ,631, % 2.6% 16.0% 17.0% 265, , OAK BROOK Class A 75 14,492, % 0.7% 16.1% 17.4% 185, , Class B ,915, % 2.5% 15.4% 15.0% (43,084) (161,127) 0 0 Class C 50 1,950, % 0.1% 10.9% 10.6% (6,626) (4,068) 0 0 Subtotal ,358, % 1.5% 15.4% 15.9% 135, , SUBURBAN TOTAL Class A ,147, % 1.0% 20.1% 20.9% 834,039 1,043, ,000 0 Class B 1,100 68,141, % 1.4% 15.3% 15.7% 317, , Class C 242 8,591, % 0.7% 12.1% 11.8% (25,361) (26,151) 0 0 Subtotal 1, ,879, % 1.2% 17.6% 18.2% 1,126,410 1,558, ,000 0 QUARTERLY COMPARISON AND TOTALS Q4-17 1, ,879, % 1.2% 17.6% 18.2% 1,126,410 1,558, ,000 0 Q3-17 1, ,686, % 1.1% 18.2% 18.4% 285, ,057 21, ,000 Q2-17 1, ,665, % 1.0% 18.4% 17.9% (644,301) 146,330 22, ,018 Q1-17 1, ,643, % 0.9% 17.9% 18.3% 790, , , ,162 UNDER CONSTRUCTION - SF Q4-16 1, ,345, % 1.0% 18.3% 18.6% 555,405 (2,374,065) 21, , Research & Forecast Report Second Quarter Suburban Chicago / Office Colliers International

17 Top Lease Transactions Suburban Chicago TENANT ADDRESS TOWN SUBMARKET CLASS SIZE (SF) TYPE QUARTER Amita Health Navistar Campus Lisle LN A 225,000 New 3Q Old World Industries* West Plaza Northbrook N A 164,000 New 1Q True Value Presidents Plaza Chicago O A 125,000 Renewal 1Q Caterpillar Corporate 500 Centre Deerfield N A 100,000 New 2Q United Healthcare Corridors Two Downers Grove OB A 93,000 New 3Q Waste Management Butterfield Centre Lombard OB A 86,000 Renewal 2Q First Midwest Bancorp Triangle Plaza Chicago O A 76,000 New 1Q Canon Woodfield Corporate Center Schaumburg NW A 71,000 Renewal 2Q Jewel Food Stores* 150 Pierce Road Itasca NW A 68,500 Renewal/ Downsize 3Q Brightstar Innovation Park Libertyville N A 64,000 New 3Q National Express 2601 Navistar Lane Lisle LN A 54,000 New 1Q Pharmaceutical Research Associates* Three Parkway North Deerfield N A 52,250 New 2Q NEC Display Solutions Esplande V Downers Grove OB A 48,000 New 4Q ISACA Two Century Centre Schaumburg NW A 45,250 New 2Q Great American Insurance Company* Schaumburg Towers Schaumburg NW A 43,750 New 1Q Abbott Landmark of Lake Forest Lake Forest N A 43,000 New 4Q AIM Specialty Health Presidents Plaza Chicago O A 41,000 New 4Q American Academy of Dermatology O'Hare Gateway Office Center Rosemont O A 41,000 New 4Q Northwestern University* Evanston MetroCenter Evanston N A 41,000 Expansion 4Q Northwestern University* Evanston MetroCenter Evanston N A 35,500 Expansion 2Q DeVry Crown Corporate Center Gurnee N B 33,000 New 1Q Kapstone Paper & Packaging Corporation* Corporate Center of Northbrook Northbrook N A 30,500 Renewal 2Q Haribo O'Hare Gateway Office Center Rosemont O A 28,500 Renewal/ Expansion Batory Foods O'Hare International Center Rosemont O A 28,000 New 4Q 3Q Northern Baptist Theological Seminary* Corporetom Office Campus X Lisle LN A 28,000 New 2Q Riddell 1700 Higgins Centre Des Plaines O A 27,000 New 1Q Allant Group Corridors Two Downers Grove OB A 26,000 New 2Q *Colliers International Transaction LN=Lisle/Naperville N=North NW=Northwest OB=Oak Brook Area O=O Hare =For Sale NEW=New to Market UC=Under Contract 17 Research & Forecast Report Fourth Quarter Suburban Chicago / Office Colliers International

18 Top Lease Transactions Suburban Chicago TENANT ADDRESS TOWN SUBMARKET CLASS SIZE (SF) TYPE QUARTER Charles Industries* Schaumburg Towers Schaumburg NW A 26,000 New 2Q Mediterannian Shipping O'Hare Plaza Chicago O A 26,000 New 1Q2107 Pregis Innovative Packaging* 1650 Lake Cook Road Deerfield N A 26,000 Expansion 2Q Rex Electric & Technologies* Woodland Corproate Tower Downers Grove OB A 25,500 New 3Q Wells Fargo Westings Corporate Center Naperville LN A 25,000 New 1Q Icon Identity Solutions Continental Towers Rolling Meadows NW A 23,500 New 2Q Draper & Kramer Mortgage Corp. Executive Towers Downers grove OB A 23,000 New 1Q InvenTrust Properties Highland Landmark II Downers Grove OB A 22,000 New 2Q Atlantic Power Services* Esplande V Downers Grove OB A 21,500 Sublease 4Q Livingston International 150 E Pierce Road Itasca NW A 21,500 New 3Q SAC Woodfield Corporate Center Schaumburg NW A 21,000 New 2Q Keypath Education* Embassy Plaza Schaumburg NW A 20,500 New 2Q EnsembleIQ International Tower Chicago O A 20,000 Extension 2Q RMB One Parkview Plaza Oak Brook OB A 19,000 New 3Q American Eagle Regency Office Plaza Des Plaines O B 19,000 New 4Q Sumitomo O'Hare Gateway Office Center Rosemont O A 19,000 New 2Q2107 UFCW Union Local Touhy Plaza Des Plaines O B 19,000 New 2Q Rhea & Kaiser Advertising Naperville Financial Center Naperville LN A 18,000 Renewal 1Q TranSystems Schaumburg Corporate Towers III Schaumburg NW A 17,500 Renewal 1Q Endtronix, Inc.* Ogden Corporate Center Lisle LN B 16,250 New 2Q Aerotek Schaumburg Corporate Center Schaumburg NW A 16,000 New 2Q *Colliers International Transaction LN=Lisle/Naperville N=North NW=Northwest OB=Oak Brook Area O=O Hare =For Sale NEW=New to Market UC=Under Contract 18 Research & Forecast Report Fourth Quarter Suburban Chicago / Office Colliers International

19 Investment Sale Activity Suburban Chicago STATUS PROPERTY Schaumburg Corporate Center Central Park of Lisle TOWN SUB- MARKET CLASS SIZE (SF) SALE PRICE PRICE/ SF BUYER SELLER QUARTER Schaumburg NW A 965,986 $80,000, $82.82 GlenStar Properties John Hancock 1Q Lisle LN A 622,287 $129,000, One Pierce Place Itasca NW A 525,422 $44,022, $89.79 Tri State International Illinois Science & Technology Park Lincolnshire N A 559,204 $73,105, $ Skokie N A 556,000 $77,000, $ Park Boulevard Itasca NW A 450,614 $34,277, $76.07 $ Lincoln Property Balfour Pacific Capital Bradford Allen Investment Advisors American Landmark Properties Balfour Pacific Capital Oakmont Centre Westmont OB A 256,767 $5,000, $19.47 Ryan Companies Chatham Centre Schaumburg NW A 205,614 $13,375, $ Jorie Boulevard Oakmont Corporate Centre Oak Brook OB B 200,162 $14,450, $72.19 Core Acquisitions LLC Exeter Property Group Westmont OB A 192,120 $18,940, $98.58 Valley Equity Group One Parkway North Deerfield N A 256,143 $47,000, $ Woodland Corporate Tower Downers Grove OB A 183,619 $12,100, $ Shafer Court Rosemont O A 179,000 $17,915, $ North Parkway Investment, LLC Stanton Road Capital, LLC Free Market Ventures The Blackstone Group Long Wharf Real Estate Partners Principal Financial Group Forest City Enterprises Hamilton Partners Lexington Westmont, LLC Barnes Real Estate Advisors McDonalds Corporation Sun Life Assurance Company Blackstone Group Westport Capital Partners, LLC Crossroads Partners 701 E 22nd Street Lombard OB A 174,097 $23,400, $ Lincoln Property M & J Wilcow 4Q Corporetum VI Lisle LN A 172,695 $13,950, $80.78 North Grove Corporate Park 1933 N Meacham Road 10 W Algonquin Road Morton Grove N B 143,961 $9,800, $68.00 Schaumburg NW A 140,466 $5,450, $38.80 Des Plaines O B 136,856 $10,000, $71.50 CenterCore Properties, LLC Woodside Capital Partners Fine Investment Company Vetter Pharma International Winthrop Realty Trust Colony Realty Partners Westport Capital Partners Salvation Army 6300 N River Road Rosemont O B 138,744 Undisclosed Undisclosed Village of Rosemont 4Q 1 N Field Drive Lake Forest N A 130,401 $7,500, $57.51 New New New Bannockburn Lake Office V Bannockburn Lake Office V Oakpointe Business Centre Evanston Enterprise Building Chevy Chase Business Park Centerpoint Northbrook Business Campus 1250 N Arlington Heights Road 700 N Wood Dale Road Packaging Corp of America Bannockburn N A 103,500 $6,300, $60.87 GlenStar Properties Bannockburn N A 103,500 $4,200, $40.57 Arlington Heights Ameritus Real Estate Fund Brunswick Corporation Ameritus Real Estate Fund Colony Realty Partners 4Q 4Q 3Q 1Q 4Q 1Q 4Q 4Q 3Q 4Q 4Q 3Q 3Q 1Q 2Q 2Q2107 1Q 4Q 2Q NW B 96,213 $4,580, $47.60 Hamilton Partners DTS Properties 2Q Evanston N B 66,000 $4,500, $68.18 Northwestern University 1840 Oak, LLC 1Q Buffalo Grove N B 62,201 $10,799, $ WP Carey, Inc. Angus Chemical 1Q Northbrook N B 220,000 TBD TBD TBD Walgreens Itasca NW A 130,934 TBD TBD TBD Hamilton Partners Wood Dale NW B 125,523 TBD TBD TBD UBS Realty Investors, LLC LN=Lisle/Naperville N=North NW=Northwest OB=Oak Brook Area O=O Hare =For Sale NEW=New to Market UC=Under Contract 19 Research & Forecast Report Fourth Quarter Suburban Chicago / Office Colliers International

20 Investment Sale Activity Suburban Chicago STATUS PROPERTY TOWN SUB- MARKET CLASS SIZE (SF) SALE PRICE PRICE/ SF BUYER SELLER QUARTER New 225 Windsor Drive Itasca NW A 101,579 TBD TBD TBD Enesco New UC UC UC UC Fountain Square Building Fifth/Third Bank Building Patriot Corporate Center Commerce Center at O'Hare Midwest Plaza North Schaumburg Towers Evanston N B 52,398 TBD TBD TBD Mavakis Properties Mount Prospect NW A 103,564 TBD TBD TBD K & K Holdings, LLC Downers Grove OB B 92,514 TBD TBD TBD Patriot Equities Des Plaines O B 69,500 TBD TBD TBD Lutheran Social Services of Illinois Oak Brook OB B 50,505 TBD TBD TBD Group Fox Schaumburg NW A 882,069 TBD TBD TBD Triangle Plaza Chicago O A 638,928 TBD TBD TBD Lucent Technologies Retail Properties of America Equity Commonwealth Naperville LN A 516,120 TBD TBD TBD Nokia One Medline Place Mundelein N A 252,826 TBD TBD TBD Medline Industries 3275 N Arlington Heights Road Estancia Corporate Centre Woodlake Corporate Center Daily Herald Office Center Lisle Executive Center Arlington Heights NW B 184,510 TBD TBD TBD Chicagoland Commercial Burr Ridge OB A 167,401 TBD TBD TBD BJF Estancia, LLC Lombard OB B 158,454 TBD TBD TBD Arlington Heights NW B 147,373 TBD TBD TBD UBS Realty Investors Paddock Publications Lisle LN B 150,036 TBD TBD TBD Boxer Property Ferry Road Warrenville LN B 136,234 TBD TBD TBD FD Stone Water 777 Big Timber Road Elgin NW A 127,280 TBD TBD TBD InterCoastal Group 2245 Sequoia Drive Aurora LN A 116,545 TBD TBD TBD Zeller Realty Group 141 NW Point Boulevard Elk Grove Village NW B 114,642 TBD TBD TBD 1717 Park Street Naperville LN A 114,016 TBD TBD TBD Golf Corporate Centre 2600 Forbes Avenue Kensington Office Plaza I Fox River Corporate Center Meridian Lakes Plaza Arlington Heights Hoffman Estates NW B 93,000 TBD TBD TBD American Academy of Pediatrics Deen Investment, LLC Chicagoland Commercial NW A 90,000 TBD TBD TBD Serta International Mount Prospect NW A 85,995 TBD TBD TBD North Aurora LN B 77,006 TBD TBD TBD Aurora LN B 64,258 TBD TBD TBD First Industrial Realty Trust Starwood Properties Trust ACG Management Co Highland Lakes Lombard OB B 57,760 TBD TBD TBD Bel Cielo, LLC LN=Lisle/Naperville N=North NW=Northwest OB=Oak Brook Area O=O Hare =For Sale NEW=New to Market UC=Under Contract 20 Research & Forecast Report Fourth Quarter Suburban Chicago / Office Colliers International