Research & Forecast Report SUBURBAN CHICAGO OFFICE Second Quarter Status Quo Ronna Larsen Senior Research Manager Suburban Chicago Pockets of improvement in suburban market, but overall vacancy remains flat in first half of. 450,000 square feet of notable new lease transactions (50,000 square feet or greater) and 12 new lease transactions greater than 25,000 square feet were signed in the Chicago suburban office market in first half of. Trends Investment and user sale velocity continued in the suburban office market in the first half of as 11 assets traded hands and four are currently under contract. While the largest of the transactions occurred in the first quarter of, notable transactions of the second quarter included Westport Capital s 140,466-square-foot sale in Schaumburg to Fine Investment Company and Colony Realty Partners 103,500-square-foot sale in Bannockburn to Ameritus Real Estate Fund. Mid-sized tenants continue to offer the most relocation potential. There are currently 83 tenants with needs ranging from 10,000 to 50,000 square feet who are actively seeking space throughout the suburban office market, 70 percent of them showing interest in the East-West market. 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, food service, tenant lounges, conference centers and outdoor spaces to cater to the younger generation. Leasing volume in the suburban office market remained comparatively flat in the second quarter of, as vacancy rose minimally to 21.6 percent from 21.5 percent in the first quarter. However, it increased when compared to mid-year s total of 20.6 percent. It has also shown an improvement from mid-year s overall vacancy rate of 20.7 percent. While vacancy in the Market Indicators Relative to prior periods Q2-16 Q1-17 Q2-17 rate 20.6% 21.5% 21.6% (YTD) (109,642) 38,474 (117,244) Rents $20.41 $20.91 $20.77 Inventory 113,477,034 113,477,034 113,477,034 Unemployment (not seasonally adjusted) Q2-16 Q2-17 Chicago 4.8% 3.6% Illinois 5.9% 4.6% US 4.9% 4.4% Class A Large Blocks of Space 20,000 SF+ 50,000 SF+ 100,000 SF+ 200,000 SF+ 300,000 SF+ O'Hare 15 5 3 0 0 Northwest 35 21 9 5 1 North 39 16 8 4 3 Lisle-Naperville 23 12 6 3 1 Oak Brook 23 11 3 1 0 Total 135 65 29 13 5 O Hare market showed the greatest improvement over the last 12 months with a 1.4 percent decrease, the Northwest market remains the weakest of the suburban office markets, ending the second quarter at 24.6 percent. Class A vacancy in the suburban office market rose to 22.5 percent in the first half of, up from 21.8 percent in the first quarter and 20.3 percent in the first half of. However, when considering high quality, true Class A assets, second quarter vacancy is lower, ending at 19.3 percent.
The overall sublease vacancy rate remained relatively flat in the first half of at 1.2 percent, compared to 1.1 percent in the first quarter and 1.2 reported during the same time period in. The first half of ended with 117,244 square feet of negative year-to-date net absorption, compared to negative 109,642 square feet of negative net absorption reported during the first half of. Large Blocks of Availability Net and Suburban Office Market Overall Suburban Office 800,000 600,000 400,000 200,000 0 (200,000) (400,000) (600,000) (800,000) (1,000,000) (1,200,000) (1,400,000) (222,208) 637,149 459,479 392,760 21.6% 21.2% 20.8% Source: Costar;Colliers International Research 2014 21.0% 20.5% (1,143,454) 21.5% (117,244) 21.8% 21.6% 21.4% 21.2% 21.0% 20.8% 20.6% 20.4% There are currently 40 properties in the suburban office market able to accommodate large (100,000 square feet and above) users, with 29 of them being Class A. However, when considering high quality, true Class A properties, only nine can accommodate a 100,000-square-foot user. While there are few available large blocks of space in the O Hare and Oak Brook markets, the North and Northwest markets offers the majority of large block options. Rents The average Class A gross asking rent ended the quarter at $29.18 per square foot gross, compared to $29.22 in the first quarter of and $28.60 at mid-year. Submarket Rates - (%) - 30.0% 25.3% 24.6% 25.0% 22.4% 22.6% 22.8% 22.1% 22.5% 20.0% 20.0% 19.1% 18.0% 18.6% 16.8% 15.0% 10.0% 5.0% 20.1% 19.2% 18.6% The average gross asking rent for all classes in Suburban Chicago decreased to $20.77 per square foot gross compared to $20.91 at the end of the first quarter. However, rates are up when compared to mid-year s rates of $20.41. Construction Speculative construction remains non-existent in the suburban office market. However, build-to-suit activity continues within the suburban market, particularly in the Northwest and Oak Brook sectors. Projects include American Academy of Pediatrics 193,000-square-foot build-to-suit property in Itasca and McShane Development Company / MetLife Real Estate Investors Huntington 90 development, a build-to-suit business park in Hoffman Estates. 0.0% -5.0% O'Hare Northwest North Lisle/Naperville Oak Brook Source: Costar;Colliers International Research Asking Gross Rental Rates Overall Suburban Office $35.00 $30.00 $25.00 $20.00 $15.00 $10.00 $5.00 $0.00 2104 Source: Costar;Colliers International Research Class A Class B Class C Average 2 Research & Forecast Report Second Quarter Suburban Chicago / Office Colliers International
Tenants In The Market Active Requirements HARVARD MCHENRY Northwest 825,000 SF GURNEE North 485,000 SF GRAYSLAKE WAUKEGAN NORTH CHICAGO NORTH 0 1 5 10 miles MARENGO HUNTLEY East-West 2,780,000 SF CRYSTAL LAKE SLEEPY HOLLOW ELGIN 31 34 72 59 20 88 12 62 90 Elgin-O'Hare Expy. 20 East-West Tollway 68 14 290 355 83 45 83 12 ROLLING MEADOWS ARLINGTON 53 HEIGHTS CAROL STREAM 290 64 53 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 55 83 34 60 VERNON HILLS 45 Lake Cook Rd. 58 22 BUFFALO GROVE MOUNT PROSPECT ELMHURST OAKBROOK WOODRIDGE 294 HINSDALE 94 PALWAUKEE FIELD 21 O'HARE INTERNATIONAL AIRPORT DuPAGE CO. BURR RIDGE COOK CO. LINCOLNSHIRE 294 190 64 MELROSE PARK OAK PARK 45 DEERFIELD NORTHBROOK FRANKLIN PARK 290 LAKE FOREST BROADVIEW 43 McCOOK 55 HIGHLAND PARK 43 41 94 GLENVIEW CICERO BEDFORD PARK 50 WINNETKA WILMETTE SKOKIE 41 90 ROSEMONT O Hare 784,000 SF 94 90 CHICAGO MIDWAY AIRPORT EVANSTON 12 20 Lake Michigan 90 94 94 90 KENDALL CO. WILL CO. PLAINFIELD BOLINGBROOK WILL CO. ROMEOVILLE 53 171 7 COOK CO. COOK CO. WILL CO. O. O. ORLAND PARK 45 50 ALSIP 57 94 IS A HAMMOND GAR The velocity of small and mid-size tenants continues to rise in the Suburban Office Market. There are currently 30 tenants in the market looking for space 50,000 square-feet or greater. 3 Research & Forecast Report Second Quarter Suburban Chicago / Office Colliers International
Significant Lease and Sale Activity Top Suburban Office Leasing Activity 2Q TENANT BUILDING TOWN SUBMARKET CLASS SIZE (SF) DEAL TYPE Caterpillar Corporate 500 Centre Deerfield N A 100,000 New Waste Management Butterfield Centre Lombard OB A 86,000 Renewal Pharmaceutical Research Associates* Three Parkway North Deerfield N A 52,250 New ISACA Two Century Centre Schaumburg NW A 45,250 New Northwestern University* Evanston MetroCenter Evanston N A 35,500 Expansion Kapstone Paper & Packaging Corporation* Corporate Center of Northbrook Northbrook N A 30,500 Renewal Northern Baptist Theological Seminary* Corporetom Office Campus X Lisle LN A 28,000 New Allant Group Corridors Two Downers Grove OB A 26,000 New Pregis Innovative Packaging* 1650 Lake Cook Road Deerfield N A 26,000 Expansion Icon Identity Solutions Continental Towers Rolling Meadows NW A 23,500 New InvenTrust Properties Highland Landmark II Downers Grove OB A 22,000 New Keypath Education* Embassy Plaza Schaumburg NW A 20,500 New Endtronix, Inc.* Ogden Corporate Center Lisle LN B 16,250 New *Colliers International Transaction Recent Suburban Office Investment Sales Activity 2Q STATUS PROPERTY TOWN SUBMKT CLASS SIZE (SF) SALE PRICE PRICE/SF BUYER SELLER Sold 1933 N Meacham Road Schaumburg NW A 140,466 $5,450,000.00 $38.80 Sold 10 W Algonquin Road Des Plaines O B 136,856 TBD TBD Sold Bannockburn Lake Office V Bannockburn N A 103,500 $4,000,000.00 $38.64 Westport Capital Partners Vetter Pharma International Ameritus Real Estate Fund Fine Investment Company Salvation Army Colony Realty Partners Sold Oakpointe Business Centre Arlington Heights NW B 96,213 $4,580,000.00 $47.60 Hamilton Partners DTS Properties UC 6400 Shafer Court Rosemont O A 179,000 TBD TBD TBD Crossroads Partners UC Naperville Corporate Center Naperville LN A 90,853 TBD TBD TBD TriGate Capital, LLC UC Midwest Plaza North Oak Brook OB B 50,505 TBD TBD TBD Group Fox New Tri State International Lincolnshire N A 559,204 TBD TBD TBD Principal Financial Group New 711 Jorie Boulevard Oak Brook OB B 200,162 TBD TBD TBD McDonalds Corporation New 701 E 22nd Street Lombard OB A 174,097 TBD TBD TBD M & J Wilcow New Daily Herald Office Center Arlington Heights NW B 147,373 TBD TBD TBD Paddock Publications New 1717 Park Street Naperville LN A 114,016 TBD TBD TBD Deen Investment, LLC New Fifth/Third Bank Building Mount Prospect NW A 103,564 TBD TBD TBD K & K Holdings, LLC New Patriot Corporate Center Downers Grove OB B 92,514 TBD TBD TBD Patriot Equities New 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 NEW=New to Market UC=Under Contract 4 Research & Forecast Report Second Quarter Suburban Chicago / Office Colliers International
O Hare Despite being the smallest of the suburban office markets, O Hare continues to attract corporate users due to its 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 consider the O Hare market as it is well suited for regional operations and its location is ideal for serving virtually any suburban market. Overall vacancy in the O Hare reached a 15-year low as it dropped to 16.8 percent, down from 18.1 percent in the first quarter and 18.2 during the same time period of. Class A vacancy continues to be the lowest of all the classes as it dropped to 13.1 percent, down from 13.5 percent in the second quarter and 13.7 percent at mid-year. When considering high quality, true Class A properties, vacancy is even lower at 12.9 percent. Sublease vacancy remains low, ending the second quarter at 1.2 percent, remaining flat from mid-year. Market Indicators Relative to prior periods Q2-16 Q1-17 Q2-17 rate 18.2% 18.1% 16.8% (YTD) (36,863) 59,078 228,610 Rents $21.19 $21.65 $21.30 Inventory 13,324,152 13,324,152 13,324,152 Vacant Space By Property Type Class C 274,430 SF 12.3% Vacant Class B 4,924,119 SF 23.2% Vacant Class A 8,125,603 SF 13.1% Vacant Class A Class B Class C Net and O Hare Office Market 250,000 200,000 150,000 100,000 50,000 131,897 21.3% 70,885 20.8% 208,141 19.2% 169,699 18.0% 18.6% 228,610 16.8% 25.0% 20.0% 15.0% 10.0% Overall net absorption in the O Hare market totaled positive 228,610 square feet, compared to negative 36,863 square feet during the same time period in. Tenants such as Combined Insurance and Wintrust Financial moved into their new space, contributing to the positive absorption. 0 (50,000) (100,000) Source: Costar;Colliers International Research 2014 (79,317) 5.0% 0.0% Class A quarterly net absorption remained strong, ending the first half of with 51,714 square feet of positive net absorption.
Large Blocks of Availability The O Hare market offers limited options for large space requirements. Currently, only four properties can accommodate large users of 100,000 square feet and above, three of which are Class A. Rents Class A average gross asking rent for the O Hare market remained flat in the second quarter of at $32.02 square foot gross. This is an increase compared to mid-year s average rate of $31.03 per square foot gross. While the average gross asking rate for all classes decreased in the second quarter of, dropping to $21.30 from $21.65 in the first quarter, it witnessed an increase from mid-year when gross asking rates averaged $21.19 per square foot gross. Construction No new speculative construction was completed in the O Hare market during the first half of. However, construction continues on the Elgin O Hare extension. The improved access to O Hare will reduce travel times to the airport and promote economic development in the O Hare and surrounding areas. Proposed projects include Pointe O Hare II, O Hare Corporate Campus, both in Rosemont, and 8201 W. Higgins Road, a 3.5-acre development in Chicago being marketed to both office and retail users. If completed, these projects could add 1.4 million square feet to the O Hare market. In addition, construction on The Pearl District, Rosemont s mixeduse development, continues with completion expected in 2018. Once completed, the new development will offer 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 2018. Asking Gross Rental Rates O Hare Office Market $35.00 $30.00 $25.00 $20.00 $15.00 $10.00 $5.00 $0.00 2104 Source: Costar;Colliers International Research Class A Class B Class C Average Top 10 Large Available Blocks by Square Feet 9600 W Bryn Mawr Avenue 5450 N Cumberland Avenue 6300 N River Road 5500 Pearl Street 2200-2400 E Devon Avenue 9500 W Bryn Mawr Avenue 8550 W Bryn Mawr Avenue 4849 N Scott Street 8600 W Bryn Mawr Avenue 8770 W Bryn Mawr Avenue 56,454 53,427 46,065 41,132 40,216 72,975 143,525 137,934 133,235 CLASS A CLASS B 161,676 Significant Lease and Sale Activity Top O Hare Office Leasing Activity 2Q TENANT BUILDING TOWN CLASS SIZE (SF) DEAL TYPE No Significant 2Q Activity Recent O Hare Office Investment Sales Activity 2Q STATUS PROPERTY TOWN CLASS SIZE (SF) SALE PRICE PRICE/SF BUYER SELLER Sold 10 W Algonquin Road Des Plaines B 136,856 TBD TBD Vetter Pharma International Salvation Army UC 6400 Shafer Court Rosemont A 179,000 TBD TBD TBD Crossroads Partners 6 Research & Forecast Report Second Quarter Suburban Chicago / Office Colliers International
Northwest The Northwest suburban office market has become home to an array of industries, making it one of the most diverse market in the suburbs. While it has seen its share of struggles, it continues to hold its own. Market Indicators Relative to prior periods Q2-16 Q1-17 Q2-17 rate 22.9% 24.2% 24.6% (YTD) (134,653) 345,786 227,505 Rents $18.55 $18.88 $18.92 Inventory 30,661,545 30,661,545 30,661,545 Vacant Space By Property Type The Northwest market retains the highest vacancy level of all the suburban markets, ending the second quarter of with 24.6 percent vacancy, up from 24.2 percent at the end of first quarter and 22.9 percent during the same time period of. Class A properties witnessed the most substantial increase rising to 24.0 percent, compared to 22.8 percent in the first quarter and 20.7 percent during the same time of. A majority of the increase comes from Arthur J. Gallagher s Itasca lease coming to term. Sublease options in the Northwest market remain low at 0.8 percent, compared to 0.9 percent in the first quarter of. Class C 1,440,427 SF 13.6% Vacant Class B 10,448,706 SF 27.1% Vacant Class A 18,772,412 SF 24.0% Vacant The Northwest market ended the second quarter of with 118,281 square feet of negative net absorption, bringing the year-todate absorption to positive 227,505 square feet. During the same time in, the overall cumulative absorption was negative 134,653 square feet. Large Blocks of Availability There are 14 properties in the Northwest that can accommodate large (100,000 square feet and above) users, nine of which are Class A. While the Northwest continues to offer the most options for large space requirements, it has witnessed a decrease from mid-year when there were 17 options. Class A Class B Class C Net and Northwest Office Market 400,000 327,414 293,419 25.3% 227,505 200,000 60,189 0 24.6% 24.3% (53,064) (200,000) (400,000) 23.2% (600,000) (800,000) 22.4% 22.3% (876,982) (1,000,000) 2014 Source: Costar;Colliers International Research 25.5% 25.0% 24.5% 24.0% 23.5% 23.0% 22.5% 22.0%
Rents The Northwest suburban Class A average gross asking rate measured $25.22 per square foot gross, compared to $25.51 in the first quarter of and $24.52 at mid-year. Asking Gross Rental Rates Northwest Office Market Northwest Submarket $35.00 $30.00 $25.00 $20.00 The average gross asking rate for all classes was $18.92 per square foot gross, compared to $18.88 in the first quarter of and $18.55 at mid-year. $15.00 $10.00 $5.00 Construction $0.00 2104 No new speculative construction was completed in the Northwest market during the first half of. However, construction continues on American Academy of Pediatrics 193,000-square-foot build-to-suit headquarters at 345 Park Boulevard in Itasca with completion expected in fall. 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. Source: Costar;Colliers International Research Class A Class B Class C Average Top 10 Large Available Blocks by Square Feet 1400 & 1450 American Lane 1301 E Algonquin Road 360,206 572,509 2550 W Golf Road 2 Pierce Place 1707 N Randall Road 3333 Beverly Road 1000 E Woodfield Road 21440 Lake Cook Road 1000 Plaza Drive 5201 Tollview Road 216,592 203,493 202,463 201,353 184,574 145,020 134,014 126,284 CLASS A CLASS B Significant Lease and Sale Activity Top Northwest Office Leasing Activity 2Q TENANT BUILDING TOWN CLASS SIZE (SF) DEAL TYPE ISACA Two Century Centre Schaumburg A 45,250 New Icon Identity Solutions Continental Towers Rolling Meadows A 23,500 New Keypath Education* Embassy Plaza Schaumburg A 20,500 New *Colliers International Transaction Recent Northwest Office Investment Sales Activity 2Q STATUS PROPERTY TOWN CLASS SIZE (SF) SALE PRICE PRICE/SF BUYER SELLER Sold 1933 N Meacham Road Schaumburg A 140,466 $5,450,000.00 $38.80 Westport Capital Partners Fine Investment Company Sold Oakpointe Business Centre Arlington Heights B 96,213 $4,580,000.00 $47.60 Hamilton Partners DTS Properties New Daily Herald Office Center Arlington Heights B 147,373 TBD TBD TBD Paddock Publications New Fifth/Third Bank Building Mount Prospect A 103,564 TBD TBD TBD K & K Holdings, LLC 8 Research & Forecast Report Second Quarter Suburban Chicago / Office Colliers International
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. in the North market reached a record high in the second quarter of, as it rose to 22.6 percent, up from 21.3 percent in the first quarter and 20.0 percent during the same time period of. Class A properties witnessed the most significant increase, ending at 27.2 percent, up from 25.1 percent in the first quarter and 23.3 percent at mid-year. A majority of this increase comes from AON s space in Glenview coming to term. However, when considering high quality, true Class A properties in the North market, vacancy is vastly lower, ending the second quarter with 13.5 percent vacancy. Although there has been a minimal increase, sublease vacancy in the North market remains low, ending the first half of at 1.0 percent, compared to 0.9 percent during the same period of. For the sixth consecutive quarter, the North market obtained negative net absorption, bringing the year-to-date absorption total to negative 768,627 square feet, compared to mid-year s total of negative 265,489 square feet. Class A properties witnessed 676,403 square feet of negative net absorption year-to-date compared to mid-year s total of 800,000 600,000 400,000 200,000 (200,000) (400,000) (600,000) (800,000) (1,000,000) (1,200,000) Market Indicators Relative to prior periods Q2-16 Q1-17 Q2-17 rate 20.0% 21.3% 22.6% (YTD) (265,489) (374,881) (768,627) Rents $22.05 $22.67 $22.21 Inventory 29,151,091 29,151,091 29,151,091 Vacant Space By Property Type Class C 1,142,669 SF 21.3% Vacant North Submarket 0 Class B 9,317,608 SF 13.7% Vacant 198,716 18.3% 217,919 17.5% Source: Costar;Colliers International Research Class A 18,690,814 SF 27.2% Vacant Class A Class B Class C Net and North Office Market (1,069,791) 2014 21.2% 621,101 19.1% (267,725) 20.0% (768,627) 22.6% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0%
234,800 square feet of negative net absorption. While this is a setback, conditions are expected to improve as tenants who committed space in late and early begin moving into their space in the second half of. 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, eight of which are Class A. However, when considering high quality, true Class A properties in desirable locations, options are limited. Rents Average Class A gross asking rent in the North market increased in the second quarter of, rising to $31.20 per square foot gross compared to $31.04 in the first quarter of and $30.17 during the same period of. Asking Gross Rental Rates North Office Market $35.00 $30.00 $25.00 $20.00 $15.00 $10.00 $5.00 $0.00 2104 Source: Costar;Colliers International Research Class A Class B Class C Average Top 10 Large Available Blocks by Square Feet The average gross asking rate for all classes dropped to $22.21 per square foot gross, compared to $22.67 in the first quarter of. However, it showed an increase when compared to mid-year s to $22.05 rate. 600 N US Highway 45 1000 Milwaukee Avenue 2 Overlook Point 3100 Sanders Road 405,039 302,678 207,411 966,091 Construction No new speculative construction was completed in the North market during the first half of. 300 Tower Parkway 300 N Field Drive 3600 W Lake Avenue 455 Knightsbridge 2355 Waukegan Road 175,545 137,300 120,999 115,489 107,631 CLASS A CLASS B 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. 700 E Lake Cook Road 98,105 Significant Lease and Sale Activity Top North Office Leasing Activity 2Q TENANT BUILDING TOWN CLASS SIZE (SF) DEAL TYPE Caterpillar Corporate 500 Centre Deerfield A 100,000 New Pharmaceutical Research Associates* Three Parkway North Deerfield A 52,250 New Northwestern University* Evanston MetroCenter Evanston A 35,500 Expansion Kapstone Paper & Packaging Corporation* Corporate Center of Northbrook Northbrook A 30,500 Renewal Pregis Innovative Packaging* 1650 Lake Cook Road Deerfield A 26,000 Expansion *Colliers International Transaction Recent North Office Investment Sales Activity 2Q STATUS PROPERTY TOWN CLASS SIZE (SF) SALE PRICE PRICE/SF BUYER SELLER Sold Bannockburn Lake Office V Bannockburn A 103,500 $4,000,000.00 $38.64 Ameritus Real Estate Fund Colony Realty Partners New Tri State International Lincolnshire A 559,204 TBD TBD TBD Principal Financial Group 10 Research & Forecast Report Second Quarter Suburban Chicago / Office Colliers International
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. The Lisle-Naperville market continued to improve, ending the second quarter of with 22.5 percent overall vacancy, down from 23.4 percent in the first quarter and 21.7 percent during the same time period of. While Class A properties also witnessed improvement from the first quarter, dropping to 24.2 percent from 25.0 percent, it showed an increase from the mid-year when vacancy was reported at 22.2 percent. When considering high quality, true Class A properties in the Lisle-Naperville market, vacancy is lower, ending the quarter at 19.0 percent compared to 20.1 percent in the first quarter. Sublease vacancy in Lisle-Naperville remains the highest of all the suburban markets, ending at 3.5 percent at the end of the second quarter. The Lisle-Naperville market ended the second quarter of with 154,270 square feet of positive quarterly net absorption, compared to positive 21,899 square feet in the second quarter of. Year-to-date net absorption totaled positive 58,046 square feet, compared to positive 64,580 square feet measured at mid-year. Market Indicators Relative to prior periods Q2-16 Q1-17 Q2-17 rate 21.7% 23.4% 22.5% (YTD) 64,580 (96,224) 58,046 Rents $20.40 $21.10 $21.10 Inventory 16,891,903 16,891,903 16,891,903 Vacant Space By Property Type Class C 869,992 SF 8.1% Vacant Class B 6,613,072 SF 21.8% Vacant Class A 9,408,839 SF 24.2% Vacant Class A Class B Class C Net and Lisle-Naperville Office Market 200,000 100,000 0 (100,000) (200,000) (300,000) 44,616 19.2% 24,754 19.0% 76,590 18.6% 22.1% (123,635) 22.8% 58,04622.5% 25.0% 20.0% 15.0% 10.0% Both Class A and B properties measured positive absorption in the first half of. Large Blocks of Availability (400,000) (500,000) (600,000) Source: Costar;Colliers International Research 2014 (494,175) 5.0% 0.0% Nine properties in the Lisle-Naperville market can accommodate large (100,000 square feet and above) users, six of which are Class A. However, when considering high quality, true Class A assets, there are only two options.
Rents Average Class A gross asking rent in the Lisle- Naperville market decreased in the second quarter of dropping to $28.00, from $28.10 in the first quarter. However, it witnessed an increase when compared to $27.88 which was obtained during the same time period in. The average gross asking rate for all classes remained flat at $21.00 per square foot gross. However, it too is up from $20.40 reported at mid-year. Construction While no new speculative construction was completed in the Lisle-Naperville market during the first half of, developers continue to seek locations for build-tosuit opportunities. Asking Gross Rental Rates Lisle-Naperville Office Market $35.00 $30.00 $25.00 $20.00 $15.00 $10.00 $5.00 $0.00 2104 Source: Costar;Colliers International Research Class A Class B Class C Average Top 10 Large Available Blocks by Square Feet *6200 S Route 53 263 Shuman Boulevard 360,000 354,000 4201 Winfield Road 2400 Cabot Drive 750 N Commons Boulevard 215 W Diehl Road 28301 Ferry Road 2441 Warrenville Road 2601 Navistar Drive 4343 Commcerce Court 250,000 205,633 194,954 162,000 136,000 132,134 107,700 96,273 CLASS A CLASS B *Sublease Significant Lease and Sale Activity Top Lisle-Naperville Office Leasing Activity 2Q TENANT BUILDING TOWN CLASS SIZE (SF) DEAL TYPE Northern Baptist Theological Seminary* Corporetum Office Campus X Lisle A 28,000 New Endtronix, Inc.* Ogden Corporate Center Lisle B 16,250 New *Colliers International Transaction Recent Lisle-Naperville Office Investment Sales Activity 2Q STATUS PROPERTY TOWN CLASS SIZE (SF) SALE PRICE PRICE/SF BUYER SELLER UC Naperville Corporate Center Naperville A 90,853 TBD TBD TBD TriGate Capital, LLC New 1717 Park Street Naperville A 114,016 TBD TBD TBD Deen Investment, LLC 12 Research & Forecast Report Second Quarter Suburban Chicago / Office Colliers International
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 Q2-16 Q1-17 Q2-17 rate 18.9% 18.7% 18.6% (YTD) 262,783 104,715 137,222 Rents $19.84 $20.25 $20.31 Inventory 23,448,343 23,448,343 23,448,343 Vacant Space By Property Type The Oak Brook market continued to improve ending the second quarter of with an overall vacancy rate of 18.6 percent, down from 18.7 percent in the first quarter and 18.9 percent at mid-year. Class C 919,842 SF 16.8% Vacant Class A 13,486,929 SF 18.2% Vacant While Class A properties decreased in vacancy in the first half, dropping to 18.2 percent from 18.7 percent in the first quarter, Class B assets witnessed an increase, rising to 19.3 percent for 18.9 percent in the first quarter. When considering high quality, true Class A properties in the Oak Brook market, vacancy is even lower, ending the quarter at 16.0 percent compared to 16.1 percent in the first quarter. Sublease vacancy in the Oak Brook market witnessed an increase, rising to 1.3 percent, compared to 1.0 percent during the first quarter. However, it is still lower than mid-year when it reported 1.6 percent. 500,000 400,000 300,000 200,000 Class B 9,041,572 SF 19.3% Vacant Class A Class B Class C Net and Oak Brook Office Market 22.0% 22.8% 269,433 21.6% 393,588 20.1% 204,205 19.2% 137,222 18.6% 25.0% 20.0% 15.0% The Oak Brook market ended the second quarter of with 32,507 square feet of positive net absorption, bringing year-to-date net absorption to positive 137,222 square feet. Class A absorption was strong, ending the first half of with 206,517 square feet of positive net absorption, compared to s mid-year total of 19,313 square feet of positive net absorption. 100,000 0 (100,000) (42,658) (200,000) (181,493) (300,000) Source: Costar;Colliers International Research 2014 10.0% 5.0% 0.0%
Large Blocks Of Availability The Oak Brook market offers a limited amount of large blocks options. Four properties in the Oak Brook market can accommodate large (100,000 square feet and above) users, three of them being Class A. Rents Average Class A gross asking rent in the Oak Brook market remained flat in the second quarter of at $29.44. However, it witnessed a slight increase when compared to $29.41 during the same period in. The average gross asking rate for all classes increased to $20.31 per square foot gross, compared to $20.25 in the first quarter of and 19.84 which was reported at midyear. Construction Asking Gross Rental Rates Oak Brook 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 2104 Source: Costar;Colliers International Research Class A Class B Class C Average No new construction was completed in the Oak Brook market during the first half of. However, build-tosuit 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, which would demolish one of the buildings on the current site to make room for two new office buildings. 700 Oakmont Lane *2707 Butterfield Road 2655 Warrenville Road 3010 Highland Parkway 747 E 22nd Street 1333 Burr Ridge Parkway 1 Tower Lane 4 Westbrook Corporate Center 3333 Finley Road 3050 Highland Parkway 120,156 113,546 109,092 95,078 90,000 89,896 81,911 78,495 74,319 256,767 CLASS A CLASS B *Sublease Significant Lease and Sale Activity Top Oak Brook Office Leasing Activity 2Q TENANT BUILDING TOWN CLASS SIZE (SF) DEAL TYPE Waste Management Butterfield Centre Lombard A 86,000 Renewal Allant Group Corridors Two Downers Grove A 26,000 New InvenTrust Properties Highland Landmark II Downers Grove A 22,000 New Recent Oak Brook Office Investment Sales Activity 2Q STATUS PROPERTY TOWN CLASS SIZE (SF) SALE PRICE PRICE/SF BUYER SELLER UC Midwest Plaza North Oak Brook B 50,505 TBD TBD TBD Group Fox New 711 Jorie Boulevard Oak Brook B 200,162 TBD TBD TBD McDonalds Corporation New 701 E 22nd Street Lombard A 174,097 TBD TBD TBD M & J Wilcow New Patriot Corporate Center Downers Grove B 92,514 TBD TBD TBD Patriot Equities New Highland Lakes Lombard B 57,760 TBD TBD TBD Bel Cielo, LLC 14 Research & Forecast Report Second Quarter Suburban Chicago / Office Colliers International
Second 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 8,125,603 12.2% 0.9% 13.1% 13.5% 28,158 51,714 0 0 $32.02 Class B 49 4,924,119 23.2% 0.0% 23.2% 26.1% 141,106 174,558 0 0 $18.97 Class C 8 274,430 12.3% 0.0% 12.3% 12.4% 268 2,338 0 0 $12.90 Subtotal 94 13,324,152 16.3% 0.6% 16.8% 18.1% 169,532 228,610 0 0 $21.30 NORTHWEST Class A 87 18,772,412 23.1% 0.9% 24.0% 22.8% (223,084) 103,755 0 0 $25.22 Class B 171 10,448,706 26.7% 0.4% 27.1% 28.2% 112,176 143,252 0 0 $17.12 Class C 28 1,440,427 11.0% 2.7% 13.6% 13.1% (7,373) (19,502) 0 0 $14.41 Subtotal 286 30,661,545 23.8% 0.8% 24.6% 24.2% (118,281) 227,505 0 0 $18.92 NORTH Class A 114 18,690,814 26.0% 1.1% 27.2% 25.1% (386,809) (676,403) 0 0 $31.20 Class B 150 9,317,608 12.8% 0.9% 13.7% 13.5% (13,509) (59,325) 0 0 $19.12 Class C 29 1,142,669 20.7% 0.6% 21.3% 21.9% 6,572 (32,899) 0 0 $16.30 Subtotal 293 29,151,091 21.6% 1.0% 22.6% 21.3% (393,746) (768,627) 0 0 $22.21 LISLE/NAPERVILLE Class A 54 9,408,839 21.9% 2.3% 24.2% 25.0% 74,907 120,368 0 0 $28.00 Class B 122 6,613,072 16.3% 5.5% 21.8% 22.8% 65,275 (79,295) 0 0 $17.90 Class C 23 869,992 8.1% 0.0% 8.1% 9.7% 14,088 16,973 0 0 $17.40 Subtotal 199 16,891,903 19.0% 3.5% 22.5% 23.4% 154,270 58,046 0 0 $21.10 OAK BROOK Class A 69 13,486,929 17.6% 0.6% 18.2% 18.7% 63,865 206,517 0 0 $29.44 Class B 143 9,041,572 16.9% 2.5% 19.3% 18.9% (35,799) (77,151) 0 0 $18.38 Class C 20 919,842 16.8% 0.0% 16.8% 17.2% 4,441 7,856 0 0 $13.10 Subtotal 232 23,448,343 17.3% 1.3% 18.6% 18.7% 32,507 137,222 0 0 $20.31 SUBURBAN TOTAL Class A 361 68,484,597 21.4% 1.1% 22.5% 21.8% (442,963) (194,049) 0 0 $29.18 Class B 635 40,345,077 19.2% 1.8% 20.9% 21.6% 269,249 102,039 0 0 $18.30 Class C 108 4,647,360 14.1% 1.0% 15.0% 15.4% 17,996 (25,234) 0 0 $14.82 Subtotal 1,104 113,477,034 20.3% 1.3% 21.6% 21.5% (155,718) (117,244) 0 0 $20.77 QUARTERLY COMPARISON AND TOTALS Q2-17 1,104 113,477,034 20.3% 1.3% 21.6% 21.5% (155,718) (117,244) 0 0 $20.77 Q1-17 1,104 113,477,034 20.2% 1.3% 21.5% 21.5% 38,474 38,474 0 0 $20.91 Q4-16 1,104 113,477,034 20.1% 1.4% 21.5% 21.0% (623,897) (1,143,454) 0 0 $20.51 Q3-16 1,104 113,477,034 19.6% 1.3% 21.0% 20.6% (410,111) (522,571) 0 0 $20.37 Q2-16 1,104 113,477,034 19.3% 1.3% 20.6% 20.7% 158,780 (109,642) 0 0 $20.41 RENTS *AT&T Corporate Campus in Hoffman Estates has been excluded from stats. 15 Research & Forecast Report Second Quarter Suburban Chicago / Office Colliers International
Second 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 8,537,210 11.6% 0.8% 12.4% 12.8% 35,214 64,070 0 0 Class B 62 5,509,450 25.0% 0.0% 25.0% 27.4% 132,439 164,831 0 0 Class C 17 772,885 5.5% 0.0% 5.5% 6.4% 7,340 3,238 0 0 Subtotal 120 14,819,545 16.3% 0.4% 16.7% 17.9% 174,993 232,139 0 0 NORTHWEST Class A 105 23,071,461 26.0% 0.7% 26.7% 25.8% (207,351) 184,135 0 0 Class B 324 17,145,777 22.0% 0.4% 22.4% 21.3% (192,342) (121,908) 0 0 Class C 63 2,329,901 12.7% 1.6% 14.3% 14.0% (5,955) 4,174 0 0 Subtotal 492 42,547,139 23.7% 0.6% 24.3% 23.3% (405,648) 66,401 0 0 NORTH Class A 142 24,057,727 21.9% 0.9% 22.8% 21.1% (406,768) (769,973) 0 0 Class B 281 21,679,298 7.5% 0.9% 8.4% 8.0% (92,923) 216,446 0 0 Class C 62 2,132,659 14.1% 0.6% 14.7% 15.0% 5,932 (38,284) 0 0 Subtotal 485 47,869,684 15.1% 0.9% 15.9% 14.9% (493,759) (591,811) 0 0 LISLE/NAPERVILLE Class A 65 12,141,633 19.4% 1.8% 21.2% 21.7% 50,835 94,615 0 0 Class B 212 11,322,113 14.1% 3.4% 17.5% 17.4% 12,282 (75,500) 22,144 0 Class C 50 1,602,515 8.5% 0.0% 8.5% 9.9% 23,158 24,576 0 0 Subtotal 327 25,066,261 16.3% 2.4% 18.7% 19.0% 86,275 43,691 22,144 0 OAK BROOK Class A 75 14,492,823 17.2% 0.6% 17.7% 17.6% (23,132) 370,847 0 0 Class B 220 12,686,526 13.2% 1.8% 14.9% 14.6% (44,760) (57,854) 0 0 Class C 50 1,950,311 10.2% 0.1% 10.3% 10.0% (4,986) 8,202 0 0 Subtotal 345 29,129,660 15.0% 1.0% 16.0% 15.8% (72,878) 321,195 0 0 SUBURBAN TOTAL Class A 428 82,300,854 20.8% 0.9% 21.7% 21.0% (551,202) (56,306) 0 0 Class B 1,099 68,343,164 14.7% 1.3% 15.8% 16.1% (185,304) 126,015 22,144 0 Class C 242 8,788,271 11.1% 0.6% 11.7% 12.0% 25,489 1,906 0 0 Subtotal 1,769 159,432,289 17.7% 1.0% 18.7% 18.2% (711,017) 71,615 22,144 0 QUARTERLY COMPARISON AND TOTALS Q2-17 1,769 159,432,289 17.7% 1.0% 18.7% 18.2% (711,017) 71,615 22,144 0 Q1-17 1,768 159,410,145 17.3% 0.9% 18.2% 18.6% 782,632 782,632 308,000 22,144 Q4-16 1,766 159,102,145 17.5% 1.0% 18.6% 18.9% 551,468 (2,397,749) 21,470 330,144 Q3-16 1,765 159,080,675 17.9% 1.0% 18.9% 17.3% (1,864,782) (2,949,217) 890,800 351,614 UNDER CONSTRUCTION - SF Q2-16 1,762 158,189,875 16.3% 1.0% 17.3% 16.8% (808,958) (1,084,435) 0 1,242,414 16 Research & Forecast Report Second Quarter Suburban Chicago / Office Colliers International
Top Lease Transactions Suburban Chicago TENANT ADDRESS TOWN SUBMARKET CLASS SIZE (SF) TYPE QUARTER 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 Waste Management Butterfield Centre Lombard OB A 86,000 Renewal 2Q First Midwest Bancorp Triangle Plaza Chicago O A 76,000 New 1Q 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 ISACA Two Century Centre Schaumburg NW A 45,250 New 2Q Great American Insurance Company* Schaumburg Towers Schaumburg NW A 43,750 New 1Q Northwestern University* Evanston MetroCenter Evanston N A 35,500 Expansion 2Q Kapstone Paper & Packaging Corporation* Northern Baptist Theological Seminary* Corporate Center of Northbrook Northbrook N A 30,500 Renewal 2Q Corporetum 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 Pregis Innovative Packaging* 1650 Lake Cook Road Deerfield N A 26,000 Expansion 2Q 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 InvenTrust Properties Highland Landmark II Downers Grove OB A 22,000 New 2Q Keypath Education* Embassy Plaza Schaumburg NW A 20,500 New 2Q EnsembleIQ International Tower Chicago O A 20,000 Extension 2Q UFCW Union Local 881 1350 Touhy Plaza Des Plaines O B 19,000 New 2Q TranSystems Schaumburg Corporate Towers III Schaumburg NW A 17,500 Renewal 1Q Endtronix, Inc.* Ogden Corporate Center Lisle LN B 16,250 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 Second Quarter Suburban Chicago / Office Colliers International
Investment Sale Activity Suburban Chicago STATUS PROPERTY Sold Sold Schaumburg Corporate Center Illinois Science & Technology Park TOWN SUB- MARKET CLASS SIZE (SF) SALE PRICE PRICE/ SF BUYER SELLER QUARTER Schaumburg NW A 965,986 $80,000,000.00 $82.82 GlenStar Properties John Hancock 1Q Skokie N A 556,000 $77,000,000.00 $111.16 American Landmark Properties Sold Oakmont Centre Westmont OB A 256,767 $5,000,000.00 $19.47 Ryan Companies Sold Sold Sold 10 W Algonquin Road North Grove Corporate Park 1933 N Meacham Road Des Plaines O B 136,856 TBD TBD Morton Grove N B 143,961 $9,800,000.00 $68.00 Schaumburg NW A 140,466 $5,450,000.00 $38.80 Sold 1 N Field Drive Lake Forest N A 130,401 $7,500,000.00 $57.51 Sold Sold Sold Sold Bannockburn Lake Office V Oakpointe Business Centre Evanston Enterprise Building Chevy Chase Business Park Bannockburn N A 103,500 $4,000,000.00 $38.64 Arlington Heights Vetter Pharma International Woodside Capital Partners Fine Investment Company Packaging Corp of America Ameritus Real Estate Fund Forest City Enterprises Lexington Westmont, LLC Salvation Army Colony Realty Partners Westport Capital Partners Brunswick Corporation Colony Realty Partners 1Q 1Q 2Q 1Q 2Q 1Q 2Q NW B 96,213 $4,580,000.00 $47.60 Hamilton Partners DTS Properties 2Q Evanston N B 66,000 $4,500,000.00 $68.18 Northwestern University 1840 Oak, LLC 1Q Buffalo Grove N B 62,201 $10,799,359.00 $173.30 WP Carey, Inc. Angus Chemical 1Q UC 6400 Shafer Court Rosemont O A 179,000 TBD TBD TBD UC UC New New Naperville Corporate Center Midwest Plaza North Tri State International 711 Jorie Boulevard Crossroads Partners Naperville LN A 90,853 TBD TBD TBD TriGate Capital, LLC Oak Brook OB B 50,505 TBD TBD TBD Group Fox Lincolnshire N A 559,204 TBD TBD TBD Oak Brook OB B 200,162 TBD TBD TBD Principal Financial Group McDonalds Corporation New 701 E 22nd Street Lombard OB A 174,097 TBD TBD TBD M & J Wilcow New Daily Herald Office Center Arlington Heights NW B 147,373 TBD TBD TBD New 1717 Park Street Naperville LN A 114,016 TBD TBD TBD New New Fifth/Third Bank Building Patriot Corporate Center Paddock Publications Deen Investment, LLC Mount Prospect NW A 103,564 TBD TBD TBD K & K Holdings, LLC Downers Grove OB B 92,514 TBD TBD TBD Patriot Equities New Highland Lakes Lombard OB B 57,760 TBD TBD TBD Bel Cielo, LLC Central Park of Lisle Lisle LN A 622,287 TBD TBD TBD The Blackstone Group One Pierce Place Itasca NW A 578,737 TBD TBD TBD Hamilton Partners Lucent Technologies Naperville LN A 516,120 TBD TBD TBD Nokia 500 Park Boulevard Itasca NW A 450,614 TBD TBD TBD Hamilton Partners One Medline Place Mundelein N A 252,826 TBD TBD TBD Medline Industries 3275 N Arlington Heights Road Arlington Heights NW B 184,510 TBD TBD TBD Corporetum V/VI Lisle LN A 172,695 TBD TBD TBD Estancia Corporate Centre Woodlake Corporate Center Chicagoland Commercial Winthrop Realty Trust Burr Ridge OB A 167,401 TBD TBD TBD BJF Estancia, LLC Lombard OB B 158,454 TBD TBD TBD UBS Realty Investors 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 Second Quarter Suburban Chicago / Office Colliers International
Investment Sale Activity Suburban Chicago STATUS PROPERTY Lisle Executive Center TOWN SUB- MARKET CLASS SIZE (SF) SALE PRICE PRICE/ SF BUYER SELLER QUARTER Lisle LN B 150,036 TBD TBD TBD Boxer Property 6300 N River Road Rosemont O B 137,942 TBD TBD TBD Sierra US 28301 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 Golf Corporate Centre 2600 Forbes Avenue Fox River Corporate Center Meridian Lakes Plaza Elk Grove Village Arlington Heights Hoffman Estates NW B 114,642 TBD TBD TBD NW B 93,000 TBD TBD TBD American Academy of Pediatrics Chicagoland Commercial NW A 90,000 TBD TBD TBD Serta International North Aurora LN B 77,006 TBD TBD TBD Aurora LN B 64,258 TBD TBD TBD Starwood Properties Trust ACG Management Co 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 Second Quarter Suburban Chicago / Office Colliers International
396 offices in 68 countries on 6 continents United States: 153 Canada: 29 Latin America: 24 Asia Pacific: 79 EMEA: 111 MARKET CONTACT: Ronna Larsen Senior Research Manager, Suburban Office Chicago +1 847 698 8517 ronna.larsen@colliers.com $2.6 billion in annual revenue 2 billion square feet under management 15,000 professionals and staff About Colliers International Colliers International Group Inc. (NASDAQ and TSX: CIGI) is an industry-leading global real estate services company with 15,000 skilled professionals operating in 68 countries. With an enterprising culture and significant employee ownership, Colliers professionals provide a full range of services to real estate occupiers, owners and investors worldwide. Services include strategic advice and execution for property sales, leasing and finance; global corporate solutions; property, facility and project management; workplace solutions; appraisal, valuation and tax consulting; customized research; and thought leadership consulting. Colliers professionals think differently, share great ideas and offer thoughtful and innovative advice that help clients accelerate their success. Colliers has been ranked among the top 100 global outsourcing firms by the International Association of Outsourcing Professionals for 12 consecutive years, more than any other real estate services firm. colliers.com Copyright Colliers International The information contained herein has been obtained from sources deemed reliable. While every reasonable effort has been made to ensure its accuracy, we cannot guarantee it. No responsibility is assumed for any inaccuracies. Readers are encouraged to consult their professional advisors prior to acting on any of the material contained in this report.