Research & Forecast Report SUBURBAN CHICAGO OFFICE Third Quarter Suburban Office Holds Steady Ronna Larsen Senior Research Manager Suburban Chicago Despite activity in certain areas of the market, overall vacancy remained unchanged in the third quarter of. 380,000 square feet of notable new lease transactions (50,000 square feet or greater) and four new lease transactions greater than 25,000 square feet were signed in the Chicago suburban office market in third quarter of. Trends Investment and user sale velocity continued in the suburban office market as four assets traded hands and two are currently under contract. Notable transactions of the third quarter included Principal Financial Group s 559,204-square-foot sale of Tri State International in Lincolnshire to Bradford Allen Investment Advisors and Sun Life Assurance Company s 192,120-square-foot sale of Oakmont Corporate Centre in Westmont to Valley Equity Group. Mid-sized tenants continue to offer the most relocation potential. There are currently 88 tenants with needs ranging from 10,000 to 50,000 square feet that are actively seeking space throughout the suburban office market, 60 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, game rooms, food service, tenant lounges, conference centers and outdoor spaces to cater to the younger generation. Leasing volume in the suburban office market remained flat in the third quarter of, as overall vacancy remained unchanged at 21.7 percent. While the Northwest and North markets witnessed a decrease in vacancy, the O Hare market reported an increase in vacancy for the first time this year. Market Indicators Relative to prior periods Q3-16 Q2-17 Q3-17 rate 21.0% 21.7% 21.7% (YTD) (498,346) (226,706) (193,743) Rents $20.36 $20.77 $20.60 Inventory 113,371,748 113,371,748 113,371,748 Unemployment (not seasonally adjusted) Q3-16 Q3-17 Chicago 5.8% 5.3% Illinois 5.8% 5.0% 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 17 4 3 0 0 Northwest 36 21 10 4 1 North 39 15 8 4 3 Lisle-Naperville 23 10 6 3 1 Oak Brook 24 12 2 1 0 Total 139 62 29 12 5 The overall sublease vacancy rate also remained flat in the third quarter of at 1.4 percent. Class A vacancy in the suburban office market improved as it decreased to 22.1 percent, down from 22.5 percent in the previous quarter. When considering high quality, true Class A assets, third quarter vacancy is even lower, ending at 19.0 percent.
The third quarter of ended with 193,743 square feet of negative year-to-date net absorption, compared to negative 226,706 square feet reported at the end of second quarter. Class A properties year-to-date net absorption totaled negative 6,146 square feet. While it remained negative, it is an improvement from mid-year s total of negative 239,039 square feet. 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) 629,077 21.7% 444,891 379,349 21.5% 21.2% (222,562) (193,743) 21.0% 20.8% 20.5% (1,116,061) 2014 21.8% 21.6% 21.4% 21.2% 21.0% 20.8% 20.6% 20.4% There are currently 42 properties in the suburban office market that can accommodate large (100,000 square feet and above) users, with 29 of them being Class A. While there are few available large blocks of space in the O Hare and Oak Brook markets, the Northwest market continues to offer the majority of large block options. Rents The average Class A gross asking rent ended the quarter at $29.29 per square foot gross, compared to $29.18 in the second quarter of. The average gross asking rent for all classes in Suburban Chicago decreased slightly to $20.60 per square foot gross compared to $20.77 at the end of the second quarter. Construction While there hasn t been any speculative construction delivered since 2010 and none is expected throughout, build-to-suit activity continues within the suburban market. Projects include Central States Funds 150,000-square-foot build-to-suit development at 8655 West Higgins Road in Chicago, American Academy of Pediatrics 193,000-squarefoot 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. Source: Costar;Colliers International Research Submarket Rates - (%) - 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% -5.0% 25.2% 23.9% 22.4% 22.8% 22.8% 22.8% 22.1% 20.1% 20.1% 19.2% 18.0% 18.6% 19.1% 18.9% 17.7% 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 Third Quarter Suburban Chicago / Office Colliers International
Tenants In The Market Active Requirements HARVARD MCHENRY Northwest 928,000 SF GURNEE North 250,000 SF GRAYSLAKE WAUKEGAN NORTH CHICAGO NORTH 0 1 5 10 miles MARENGO HUNTLEY East-West 2,815,000 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 525,000 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 Third Quarter Suburban Chicago / Office Colliers International
Significant Lease and Sale Activity Top Suburban Office Leasing Activity 3Q TENANT BUILDING TOWN SUBMARKET CLASS SIZE (SF) DEAL TYPE Amita Health Navistar Campus Lisle LN A 225,000 New Robert Bosch Tools* 1800 W Central Road Mount Prospect NW B 222,000 Renewal United Healthcare Corridors Two Downers Grove OB A 92,727 New Jewel Food Stores* 150 Pierce Road Itasca NW A 68,500 Renewal/Downsize Brightstar Innovation Park Libertyville N A 64,000 New Rex Electric & Technologies* Woodland Corporate Tower Downers Grove OB A 25,500 New Livingston International 150 E Pierce Road Itasca NW A 21,500 New RMB One Parkview Plaza Oak Brook OB A 19,000 New *Colliers International Transaction Recent Suburban Office Investment Sales Activity 3Q STATUS PROPERTY TOWN SUBMKT CLASS SIZE (SF) SALE PRICE PRICE/SF BUYER SELLER Tri State International Lincolnshire N A 559,204 $73,105,000.00 $103.73 Bradford Allen Investment Advisors Oakmont Corporate Centre Westmont OB A 192,120 $18,940,000.00 $98.58 Valley Equity Group Principal Financial Group Sun Life Assurance Company 6400 Shafer Court Rosemont O A 179,000 $17,915,000.00 $100.08 Free Market Ventures Crossroads Partners Corporetum VI Lisle LN A 172,695 $13,950,000.00 $80.78 CenterCore Properties, LLC Winthrop Realty Trust New Schaumburg Towers Schaumburg NW A 882,069 TBD TBD TBD Retail Properties of America New Triangle Plaza Chicago O A 638,928 TBD TBD TBD Equity Commonwealth New Kensington Office Plaza I Mount Prospect NW A 85,995 TBD TBD TBD UC Commerce Center at O'Hare Des Plaines O B 69,500 TBD TBD TBD First Industrial Realty Trust 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 Third 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, 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. Overall vacancy in the O Hare market rose for the first time in a year to 17.7 percent, up from 16.8 in the second quarter of. Despite the increase in vacancy, O Hare Class A vacancy is the lowest of all the suburban submarkets. Class A properties rose to 14.0 percent, up from 13.0 percent in the second quarter of. When considering high quality, trophy properties, vacancy is currently 15.3 percent. However, a significant portion of that vacancy is concentrated in US Cellular Plaza, which has 120,000 square feet of space contacted for year-end occupancy. The O Hare market offers the lowest amount of sublease space of all of the suburban markets at 0.4 percent. Overall net absorption in the O Hare market totaled positive 123,026 square feet, compared to positive 246,378 square feet at the end of the second quarter. Class A assets were responsible for a majority of the negative net absorption as it ended the quarter with negative 22,292 square feet. Market Indicators Relative to prior periods Q3-16 Q2-17 Q3-17 rate 19.4% 16.8% 17.7% (YTD) (182,896) 246,378 123,026 Rents $21.09 $21.30 $20.81 Inventory 13,368,739 13,368,739 13,368,739 Vacant Space By Property Type Class C 274,430 SF 11.6% Vacant Class B 4,924,119 SF 24.2% Vacant Class A 8,170,190 SF 14.0% Vacant Class A Class B Class C Net and O Hare Office Market 250,000 200,000 150,000 100,000 50,000 0 (50,000) (100,000) 208,141 21.3% 20.8% 19.3% 169,699 18.6% 131,897 18.0% 17.7% 123,026 65,848 Source: Costar;Colliers International Research 2014 (79,317) 25.0% 20.0% 15.0% 10.0% 5.0% 0.0%
Large Blocks of Availability Options for large space requirements continue to dwindle in the O Hare market. There are currently only four properties that 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 increased to $32.14 per square foot gross in the third quarter of, compared to $32.00 in the second quarter. However, the average gross asking rate for all classes deceased in the third quarter of, dropping to $20.81 from $21.30 in the second quarter. Asking Gross Rental Rates O Hare Office Market O'Hare Submarket $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 Construction No new speculative construction was completed in the O Hare market during the third quarter of. 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. In addition, construction is set to begin in early 2018 for Central States Funds 150,000-square-foot build-to-suit development at 8655 West Higgins Road in Chicago. Proposed projects include Pointe O Hare II, O Hare Corporate Campus and 8201 West 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 mixed-use development, continues with completion expected in 2018. Once completed, the new development will offer three 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. 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 72,975 999 E Touhy Avenue 59,711 8550 W Bryn Mawr Avenue 53,427 1700 W Higgins Road 52,944 8600 W Bryn Mawr Avenue 46,105 4849 N Scott Street 46,065 143,525 137,934 133,235 CLASS A CLASS B 161,676 Significant Lease and Sale Activity Top O Hare Office Leasing Activity 3Q TENANT BUILDING TOWN CLASS SIZE (SF) DEAL TYPE Recent O Hare Office Investment Sales Activity 3Q No Significant 2Q Activity STATUS PROPERTY TOWN CLASS SIZE (SF) SALE PRICE PRICE/SF BUYER SELLER 6400 Shafer Court Rosemont A 179,000 $17,915,000.00 $100.08 Free Market Ventures Crossroads Partners New Triangle Plaza Chicago A 638,928 TBD TBD TBD Equity Commonwealth UC Commerce Center at O'Hare Des Plaines B 69,500 TBD TBD TBD Lutheran Social Services of Illinois 6 Research & Forecast Report Third 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 markets in the suburbs, has increased activity. Market Indicators Relative to prior periods Q3-16 Q2-17 Q3-17 rate 23.0% 24.4% 23.9% (YTD) (199,087) 265,260 400,759 Rents $18.66 $18.92 $19.02 Inventory 30,681,721 30,681,721 30,681,721 Despite retaining the highest vacancy level of all the suburban markets, the Northwest market has continued to see improvement throughout reporting 23.9 percent versus 24.4 percent in the second quarter. Both Class A and B properties witnessed a decrease in vacancy in the third quarter of. When considering high quality, trophy properties, vacancy is currently 31.6 percent. However, a significant portion of that vacancy is concentrated in two large blocks of vacant space, 400,000 square feet at the former Zurich Insurance headquarters which is now being redeveloped as Schaumburg Towers, and at Two Pierce Place where AJ Gallagher vacated their long-time headquarters after their relocation to their new 300,000-square-foot headquarters in Rolling Meadows. Sublease options in the Northwest market remain low at 0.6 percent, compared to 0.8 percent during the second quarter of. Overall year-to-date net absorption in the Northwest is currently positive 400,759 square feet, the strongest of all the submarkets. Class A assets offered the largest increase in positive net absorption, ending the quarter with 93,362 square feet of positive net absorption, bringing the year-to-date total to 211,841 square feet. Vacant Space By Property Type Class C 1,467,184 SF 12.1% Vacant Class B 10,425,709 SF 26.6% Vacant Class A 18,788,828 SF 23.4% Vacant Class A Class B Class C Net and Northwest Office Market Northwest Submarket 600,000 400,000 200,000 0 (200,000) (400,000) (600,000) (800,000) (1,000,000) 60,189 24.3% 327,414 23.2% 293,419 2014 22.3% (48,304) 22.4% (866,386) 25.2% 400,759 23.9% 25.5% 25.0% 24.5% 24.0% 23.5% 23.0% 22.5% 22.0% Source: Costar;Colliers International Research
Large Blocks of Availability Asking Gross Rental Rates Northwest Office Market 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. $35.00 $30.00 $25.00 $20.00 Rents $15.00 The Northwest suburban Class A average gross asking rate remained relatively flat at $25.23 per square foot gross, compared to $25.22 in the second quarter of. $10.00 $5.00 $0.00 2104 The average gross asking rate for all classes improved, rising to $19.02 per square foot gross, compared to $18.92 the second quarter of. Source: Costar;Colliers International Research Class A Class B Class C Average Construction 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 the fall. In addition, Huntington 90, a build-to-suit business park in Hoffman Estates which can accommodate up to 500,000-square-foot facilities is in the planning stages with McShane Development Company and MetLife Real Esate Investors and 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. Top 10 Large Available Blocks by Square Feet 1400 & 1450 American Lane 1301 E Algonquin Road 360,206 2550 W Golf Road 260,886 2 Pierce Place 203,493 1707 N Randall Road 202,527 3333 Beverly Road 201,353 1000 E Woodfield Road 195,141 21440 Lake Cook Road 145,020 1000 Plaza Drive 134,014 777 Big Timber Road 127,280 572,509 CLASS A CLASS B Significant Lease and Sale Activity Top Northwest Office Leasing Activity 3Q TENANT BUILDING TOWN CLASS SIZE (SF) DEAL TYPE Robert Bosch Tools* 1800 W Central Road Mount Prospect B 222,000 Renewal Jewel Food Stores* 150 Pierce Road Itasca A 68,500 Renewal/Downsize Livingston International 150 E Pierce Road Itasca A 21,500 New *Colliers International Transaction Recent Northwest Office Investment Sales Activity 3Q STATUS PROPERTY TOWN CLASS SIZE (SF) SALE PRICE PRICE/SF BUYER SELLER New Schaumburg Towers Schaumburg A 882,069 TBD TBD TBD Retail Properties of America New Kensington Office Plaza I Mount Prospect A 85,995 TBD TBD TBD First Industrial Realty Trust 8 Research & Forecast Report Third 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 progress in recent quarters, the North market continues to ebb and flow as it makes its way toward recovery. After getting off to a rough start earlier in the year, the North market witnessed improvement as overall vacancy dropped to 22.8 percent, down from 23.0 percent in the second quarter. Class A vacancy in the third quarter of was down to 26.4 percent, compared to 27.0 in the second quarter. When considering high quality, trophy properties in the North market, vacancy is substantially lower at 9.49 percent at the end of the third quarter. Sublease options in the North market remain low at 1.3 percent, compared to 1.4 percent during the second quarter of. While year-to-date net absorption in the North market remained negative at 774,932 square feet due to tenants moving out earlier in the year, the North market was able to achieve positive net absorption for the quarter, ending with positive 54,410 square feet. Class A properties were responsible for the bulk of the positive net absorption, ending the quarter with 115,426 square feet. Market Indicators Relative to prior periods Q3-16 Q2-17 Q3-17 rate 20.1% 23.0% 22.8% (YTD) (275,005) (829,342) (774,932) Rents $22.04 $22.21 $22.17 Inventory 29,017,722 29,017,722 29,017,722 Vacant Space By Property Type Class C 1,056,285 SF 27.5% Vacant Class B 9,255,364 SF 14.8% Vacant Class A 18,706,073 SF 26.4% Vacant Class A Class B Class C Net and North Office Market North Submarket 800,000 600,000 400,000 200,000 0 (200,000) (400,000) (600,000) (800,000) (1,000,000) (1,200,000) 184,382 18.3% 199,134 17.6% Source: Costar;Colliers International Research (1,070,145) 2014 21.3% 620,269 19.2% (270,719) 20.1% (774,932) 22.8% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0%
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, options are limited. Asking Gross Rental Rates North Office Market $35.00 $30.00 $25.00 $20.00 Rents $15.00 Average Class A gross asking rent in the North decreased slightly to $31.34 from $31.20 per square foot gross in the second quarter of. $10.00 $5.00 $0.00 2104 The average gross asking rate for all classes remained relatively flat at $22.17 per square foot gross, compared to $22.21 in the second quarter of. Source: Costar;Colliers International Research Class A Class B Class C Average Construction No new speculative construction was completed in the North market during the third quarter and none is expected for the remainder of. 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. Top 10 Large Available Blocks by Square Feet 600 N US Highway 45 1000 Milwaukee Avenue 405,039 2 Overlook Point 302,678 3100 Sanders Road 207,411 300 Tower Parkway 175,545 966,091 333-455 Knightsbridge Pky 300 N Field Drive 3600 W Lake Avenue 2355 Waukegan Road 440 N Fairway Drive 139,927 137,300 120,999 103,115 99,579 CLASS A CLASS B Significant Lease and Sale Activity Top North Office Leasing Activity 3Q TENANT BUILDING TOWN CLASS SIZE (SF) DEAL TYPE Brightstar Innovation Park Libertyville A 64,000 New *Colliers International Transaction Recent North Office Investment Sales Activity 3Q STATUS PROPERTY TOWN CLASS SIZE (SF) SALE PRICE PRICE/SF BUYER SELLER Tri State International Lincolnshire A 559,204 $73,105,000.00 $103.73 Bradford Allen Investment Advisors Principal Financial Group 10 Research & Forecast Report Third Quarter Suburban Chicago / Office Colliers International
Lisle-Naperville The Lisle-Naperville market, known for attracting technology tenants with newer construction and bigger floor plates, is still recovering from the setback it suffered from in as available space rose due to the merger and relocation activities of large tenants. Overall vacancy in the Lisle-Naperville market remained flat in the third quarter of at 22.8 percent. However, Class A properties witnessed improvement as vacancy improved 40 basis points in the third quarter of. When considering high quality, trophy properties, third quarter vacancy is substantially lower, ending at 9.9 percent. Sublease vacancy in the Lisle-Naperville market remains the highest of all the markets, ending the third quarter with 3.7 percent, up from 3.5 percent at the end of second quarter. We expect this number to drop with the execution of Amita Health for 225,000 square feet at the Navistar Campus. Overall net absorption in the Lisle-Naperville market totaled negative 7,647 square feet compared to positive 914 square feet in the second quarter, leaving it flat for 3rd quarter. While a majority of the negative absorption in the Lisle-Naperville market came from Class B properties, Class A properties ended on a positive note with year-to-date absorption ending at positive 148,695 square feet, compared to 106,945 square feet at the end of second quarter. Large Blocks of Availability Vacant Space By Property Type Net and Lisle-Naperville Office Market 200,000 100,000 Market Indicators Relative to prior periods Q3-16 Q2-17 Q3-17 rate 22.7% 22.8% 22.8% (YTD) (110,398) 914 (7,647) Rents $20.14 $21.10 $20.69 Inventory 16,849,554 16,849,554 16,849,554 0 (100,000) (200,000) (300,000) (400,000) (500,000) (600,000) Class C 835,537 SF 8.8% Vacant Class B 6,571,164 SF 23.2% Vacant Class A 9,442,853 SF 23.9% Vacant Class A Class B Class C 45,539 19.2% 33,988 19.0% 76,590 2014 18.5% (494,175) 22.1% (123,792) 22.8% (7,647) 22.8% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% Nine properties in the Lisle-Naperville market can accommodate large (100,000 square feet and above) users, six of them being Class A. However, when considering high-quality, true Class A assets, there are only two options. Source: Costar;Colliers International Research
Rents Average Class A gross asking rent in the Lisle- Naperville market increased to $28.22 per square foot gross, compared to $28.00 in the second quarter. The average gross asking rate for all classes decreased to $20.69 per square foot gross, compared to $21.10 in the second quarter of. Asking Gross Rental Rates Lisle-Naperville Office Market $35.00 $30.00 $25.00 $20.00 $15.00 $10.00 We continue to see a separation of the classes between Class A & B. $5.00 $0.00 2104 Construction While no new speculative construction was completed in the Lisle-Naperville market during the third quarter of, developers continue to seek locations for build-tosuit opportunities. 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 205,633 194,954 250,000 215 W Diehl Road 2441 Warrenville Road 28301 Ferry Road 1415 W Diehl Road 4343 Commcerce Court 162,000 136,719 136,000 106,000 96,273 CLASS A CLASS B *Sublease Significant Lease and Sale Activity Top Lisle-Naperville Office Leasing Activity 3Q TENANT BUILDING TOWN CLASS SIZE (SF) DEAL TYPE Amita Health Navistar Campus Lisle A 225,000 New *Colliers International Transaction Recent Lisle-Naperville Office Investment Sales Activity 3Q STATUS PROPERTY TOWN CLASS SIZE (SF) SALE PRICE PRICE/SF BUYER SELLER Corporetum VI Lisle A 172,695 $13,950,000.00 $80.78 CenterCore Properties, LLC Winthrop Realty Trust 12 Research & Forecast Report Third 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 Q3-16 Q2-17 Q3-17 rate 19.0% 18.8% 18.9% (YTD) 269,040 90,084 65,051 Rents $19.94 $20.31 $20.29 Inventory 23,454,012 23,454,012 23,454,012 Vacant Space By Property Type The Oak Brook market ended the third quarter of with an overall vacancy rate of 18.9 percent, relatively flat from the 18.8 percent reported in the second quarter. Class C 919,842 SF 16.6% Vacant Class A 13,492,598 SF 18.2% Vacant While Class B properties increased in vacancy in the third quarter of, rising to 20.1 percent from 19.1 percent in the second quarter, Class A assets have witnessed a decrease in vacancy, dropping to 18.2 percent compared to 18.7 percent during the second quarter. When considering high quality, trophy properties in the Oak Brook market, vacancy is lower, ending the quarter at 16.5 percent. While still low, sublease vacancy in the Oak Brook market rose to 1.6 percent, compared to 1.3 percent during the second quarter of. The Oak Brook market ended the third quarter of with 65,061 square feet of positive net absorption, down from second quarter s year-to-date total of 90,084 square feet. Class A properties remained strong, ending the third quarter with 63,417 square feet of positive net absorption, bringing the year-todate total to 200,170 square feet. Class B 9,041,572 SF 20.1% Vacant Class A Class B Class C Net and Oak Brook Office Market 500,000 400,000 300,000 200,000 100,000 0 (100,000) (200,000) (300,000) (42,658) 22.0% (181,493) 22.8% 269,433 2014 21.6% 381,588 20.1% 224,153 19.1% 65,051 18.9% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% Source: Costar;Colliers International Research
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. Asking Gross Rental Rates Oak Brook Office Market Oak Brook Submarket $35.00 $30.00 $25.00 $20.00 Rents $15.00 Class A average gross asking rate in the Oak Brook market rose to $29.50 per square foot gross, compared to $29.44 in the second quarter of. $10.00 $5.00 $0.00 2104 The average gross asking rate for all classes decreased slightly to $20.29 per square foot gross, compared to $20.31 in the second quarter of. Source: Costar;Colliers International Research Class A Class B Class C Average Construction No new construction was completed in the Oak Brook market during the third quarter of. However, 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. Top 10 Large Available Blocks by Square Feet 700 Oakmont Lane *2707 Butterfield Road 120,156 3010 Highland Parkway 109,092 256,767 747 E 22nd Street 1333 Burr Ridge Parkway 4 Westbrook Corporate Center 3333 Finley Road 814 Comerce Drive 3050 Highland Parkway 1400 Opus Place 95,078 90,000 81,911 78,495 74,917 74,319 69,377 CLASS A CLASS B *Sublease Significant Lease and Sale Activity Top Oak Brook Office Leasing Activity 3Q TENANT BUILDING TOWN CLASS SIZE (SF) DEAL TYPE United Healthcare Corridors Two Downers Grove A 92,727 New Rex Electric & Technologies* Woodland Corporate Tower Downers Grove A 25,500 New RMB One Parkview Plaza Oak Brook A 19,000 New Recent Oak Brook Office Investment Sales Activity 3Q STATUS PROPERTY TOWN CLASS SIZE (SF) SALE PRICE PRICE/SF BUYER SELLER Oakmont Corporate Centre Westmont A 192,120 $18,940,000.00 $98.58 Valley Equity Group Sun Life Assurance Company UC Midwest Plaza North Oak Brook B 50,505 TBD TBD TBD Group Fox 14 Research & Forecast Report Third Quarter Suburban Chicago / Office Colliers International
Third 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 8,170,190 13.4% 0.6% 14.0% 13.0% (81,062) (22,292) 0 0 $32.14 Class B 49 4,924,119 24.2% 0.0% 24.2% 23.3% (46,460) 138,810 0 0 $18.63 Class C 8 274,430 11.6% 0.0% 11.6% 12.3% 2,100 6,508 0 0 $11.67 Subtotal 94 13,368,739 17.3% 0.4% 17.7% 16.8% (125,422) 123,026 0 0 $20.81 NORTHWEST Class A 87 18,788,828 22.8% 0.6% 23.4% 23.9% 93,362 211,841 0 0 $25.23 Class B 170 10,425,709 26.3% 0.3% 26.6% 26.8% 26,933 193,072 0 0 $17.38 Class C 29 1,467,184 9.5% 2.6% 12.1% 13.1% 15,204 (4,154) 0 0 $14.46 Subtotal 286 30,681,721 23.3% 0.6% 23.9% 24.4% 135,499 400,759 0 0 $19.02 NORTH Class A 115 18,706,073 25.5% 1.0% 26.4% 27.0% 115,426 (544,560) 0 0 $31.34 Class B 149 9,255,364 13.0% 1.9% 14.8% 14.6% (22,138) (149,864) 0 0 $18.98 Class C 27 1,056,285 26.3% 1.2% 27.5% 23.9% (38,878) (80,508) 0 0 $16.18 Subtotal 291 29,017,722 21.5% 1.3% 22.8% 23.0% 54,410 (774,932) 0 0 $22.17 LISLE/NAPERVILLE Class A 54 9,442,853 21.5% 2.4% 23.9% 24.3% 41,750 148,695 0 0 $28.22 Class B 121 6,571,164 17.1% 6.1% 23.2% 22.6% (36,922) (159,926) 0 0 $17.75 Class C 22 835,537 8.8% 0.0% 8.8% 7.2% (13,389) 3,584 0 0 $16.11 Subtotal 197 16,849,554 19.1% 3.7% 22.8% 22.8% (8,561) (7,647) 0 0 $20.69 OAK BROOK Class A 69 13,492,598 17.5% 0.7% 18.2% 18.7% 63,417 200,170 0 0 $29.50 Class B 143 9,041,572 16.9% 3.1% 20.1% 19.1% (88,848) (144,244) 0 0 $18.27 Class C 20 919,842 16.6% 0.0% 16.6% 16.7% 398 9,125 0 0 $13.10 Subtotal 232 23,454,012 17.2% 1.6% 18.9% 18.8% (25,033) 65,051 0 0 $20.29 SUBURBAN TOTAL Class A 362 68,600,542 21.2% 1.0% 22.1% 22.5% 232,893 (6,146) 0 0 $29.29 Class B 632 40,217,928 19.4% 2.2% 21.6% 21.1% (167,435) (122,152) 0 0 $18.20 Class C 106 4,553,278 14.8% 1.1% 15.9% 15.2% (34,565) (65,445) 0 0 $14.30 Subtotal 1,100 113,371,748 20.3% 1.4% 21.7% 21.7% 30,893 (193,743) 0 0 $20.60 QUARTERLY COMPARISON AND TOTALS Q3-17 1,100 113,371,748 20.3% 1.4% 21.7% 21.7% 30,893 (193,743) 0 0 $20.60 Q2-17 1,100 113,371,748 20.3% 1.4% 21.7% 21.4% (336,269) (226,706) 0 0 $20.77 Q1-17 1,100 113,371,748 20.1% 1.3% 21.4% 21.5% 109,563 109,563 0 0 $20.91 Q4-16 1,100 113,371,748 20.1% 1.4% 21.5% 21.0% (620,279) (1,116,061) 0 0 $20.51 Q3-16 1,100 113,371,748 19.6% 1.3% 21.0% 20.6% (378,325) (498,346) 0 0 $20.37 RENTS *AT&T Corporate Campus in Hoffman Estates has been excluded from stats. 15 Research & Forecast Report Second Quarter Suburban Chicago / Office Colliers International
Third 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 8,581,797 12.7% 0.8% 13.5% 12.3% (100,829) (36,759) 0 0 Class B 63 5,564,250 24.6% 0.0% 24.6% 24.7% 5,313 183,397 0 0 Class C 18 795,109 4.2% 0.0% 4.2% 5.3% 8,771 12,009 0 0 Subtotal 122 14,941,156 16.7% 0.5% 17.2% 16.6% (86,745) 158,647 0 0 NORTHWEST Class A 105 23,077,999 25.9% 0.5% 26.3% 26.7% 83,553 257,810 0 0 Class B 324 17,171,395 22.0% 0.3% 22.3% 22.4% 24,883 (107,771) 0 0 Class C 63 2,334,223 11.8% 1.7% 13.5% 14.3% 17,712 21,886 0 0 Subtotal 492 42,583,617 23.5% 0.5% 24.0% 24.3% 126,148 171,925 0 0 NORTH Class A 143 24,074,747 21.4% 0.7% 22.1% 22.7% 146,031 (605,444) 0 0 Class B 282 21,500,437 7.6% 0.9% 8.5% 8.5% 9,017 247,925 0 0 Class C 59 2,009,715 16.3% 0.6% 16.9% 15.6% (27,128) (65,412) 0 0 Subtotal 484 47,584,899 14.9% 0.8% 15.7% 16.0% 127,920 (422,931) 0 0 LISLE/NAPERVILLE Class A 66 12,197,117 16.8% 1.8% 18.7% 19.0% 35,900 140,764 0 0 Class B 213 11,324,331 14.2% 3.6% 17.8% 17.6% (12,192) (87,692) 21,018 0 Class C 50 1,596,502 7.5% 0.0% 7.5% 7.7% 4,180 30,056 0 0 Subtotal 329 25,117,950 15.1% 2.5% 17.6% 17.6% 27,888 83,128 21,018 0 OAK BROOK Class A 75 14,492,823 16.8% 0.7% 17.4% 17.8% 54,424 425,271 0 0 Class B 221 12,831,725 13.0% 2.3% 15.3% 14.7% (78,559) (126,218) 0 0 Class C 50 1,950,311 10.5% 0.1% 10.6% 10.3% (5,644) 2,558 0 0 Subtotal 346 29,274,859 14.7% 1.3% 16.0% 15.9% (29,779) 301,611 0 0 SUBURBAN TOTAL Class A 430 82,424,483 20.2% 0.8% 21.1% 21.3% 219,079 181,642 0 0 Class B 1,103 68,392,138 14.7% 1.4% 16.1% 15.8% (51,538) 109,641 21,018 0 Class C 240 8,685,860 11.1% 0.6% 11.7% 11.7% (2,109) 1,097 0 0 Subtotal 1,773 159,502,481 17.4% 1.1% 18.4% 18.5% 165,432 292,380 21,018 0 QUARTERLY COMPARISON AND TOTALS Q3-17 1,773 159,502,481 17.4% 1.1% 18.4% 18.5% 165,432 292,380 21,018 0 Q2-17 1,772 159,481,463 17.5% 1.0% 18.5% 18.1% (662,417) 126,948 22,144 21,018 Q1-17 1,771 159,459,319 17.2% 0.9% 18.1% 18.4% 789,365 789,365 298,122 43,162 Q4-16 1,769 159,161,197 17.4% 1.0% 18.4% 18.8% 563,982 (2,378,700) 21,470 341,284 UNDER CONSTRUCTION - SF Q3-16 1,768 159,139,727 17.8% 1.0% 18.8% 17.1% (1,849,794) (2,942,682) 890,800 341,736 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 Amita Health Navistar Campus Lisle LN A 225,000 New 3Q Robert Bosch Tools* 1800 W Central Road Mount Prospect NW B 222,000 Renewal 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 Jewel Food Stores* 150 Pierce Road Itasca NW A 68,500 Renewal/ Downsize 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* 3Q 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 DeVry Crown Corporate Center Gurnee N B 33,000 New 1Q Kapstone Paper & Packaging Corporation* Northern Baptist Theological Seminary* Corporate Center of Northbrook Northbrook N A 30,500 Renewal 2Q 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 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 Charles Industries* Schaumburg Towers Schaumburg NW A 26,000 New 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 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 Livingston International 150 E Pierce Road Itasca NW A 21,500 New 3Q 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 UFCW Union Local 881 1350 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 *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 Third Quarter Suburban Chicago / Office Colliers International
Investment Sale Activity Suburban Chicago STATUS PROPERTY Schaumburg Corporate Center Tri State International 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 Lincolnshire N A 559,204 $73,105,000.00 $103.73 Skokie N A 556,000 $77,000,000.00 $111.16 Bradford Allen Investment Advisors American Landmark Properties Oakmont Centre Westmont OB A 256,767 $5,000,000.00 $19.47 Ryan Companies Oakmont Corporate Centre Westmont OB A 192,120 $18,940,000.00 $98.58 Valley Equity Group 6400 Shafer Court Rosemont O A 179,000 $17,915,000.00 $100.08 Corporetum VI Lisle LN A 172,695 $13,950,000.00 $80.78 North Grove Corporate Park 1933 N Meacham Road 10 W Algonquin Road Morton Grove N B 143,961 $9,800,000.00 $68.00 Schaumburg NW A 140,466 $5,450,000.00 $38.80 Des Plaines O B 136,856 $10,000,000.00 $71.50 1 N Field Drive Lake Forest N A 130,401 $7,500,000.00 $57.51 New Bannockburn Lake Office V Oakpointe Business Centre Evanston Enterprise Building Chevy Chase Business Park Schaumburg Towers Bannockburn N A 103,500 $4,000,000.00 $38.64 Arlington Heights Free Market Ventures CenterCore Properties, LLC Woodside Capital Partners Fine Investment Company Vetter Pharma International Packaging Corp of America Ameritus Real Estate Fund Principal Financial Group Forest City Enterprises Lexington Westmont, LLC Sun Life Assurance Company Crossroads Partners Winthrop Realty Trust Colony Realty Partners Westport Capital Partners Salvation Army Brunswick Corporation Colony Realty Partners 3Q 1Q 1Q 3Q 3Q 3Q 1Q 2Q 2Q2107 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 Schaumburg NW A 882,069 TBD TBD TBD New Triangle Plaza Chicago O A 638,928 TBD TBD TBD New UC UC Kensington Office Plaza I Commerce Center at O'Hare Midwest Plaza North Central Park of Lisle Mount Prospect NW A 85,995 TBD TBD TBD Des Plaines O B 69,500 TBD TBD TBD Retail Properties of America Equity Commonwealth First Industrial Realty Trust Lutheran Social Services of Illinois Oak Brook OB B 50,505 TBD TBD TBD Group Fox 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 711 Jorie Boulevard 3275 N Arlington Heights Road Oak Brook OB B 200,162 TBD TBD TBD Arlington Heights NW B 184,510 TBD TBD TBD McDonalds Corporation Chicagoland Commercial 701 E 22nd Street Lombard OB A 174,097 TBD TBD TBD M & J Wilcow Estancia Corporate Centre Woodlake Corporate Center 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 Third Quarter Suburban Chicago / Office Colliers International
Investment Sale Activity Suburban Chicago STATUS PROPERTY Daily Herald Office Center Lisle Executive Center TOWN Arlington Heights SUB- MARKET CLASS SIZE (SF) SALE PRICE NW B 147,373 TBD TBD TBD PRICE/ SF BUYER SELLER QUARTER Paddock Publications Lisle LN B 150,036 TBD TBD TBD Boxer Property 6300 N River Road Rosemont O B 138,744 TBD TBD TBD Village of Rosemont 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 Elk Grove Village NW B 114,642 TBD TBD TBD 1717 Park Street Naperville LN A 114,016 TBD TBD TBD Fifth/Third Bank Building Golf Corporate Centre Patriot Corporate Center 2600 Forbes Avenue Fox River Corporate Center Meridian Lakes Plaza American Academy of Pediatrics Deen Investment, LLC Mount Prospect NW A 103,564 TBD TBD TBD K & K Holdings, LLC Arlington Heights NW B 93,000 TBD TBD TBD Chicagoland Commercial Downers Grove OB B 92,514 TBD TBD TBD Patriot Equities Hoffman Estates 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 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 19 Research & Forecast Report Third 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.