P R E V IEW EVI EW

Q3 2011 11

Bo st B o s t o n Of f ice Office

225 Franklin Street Boston, MA 02110 (617) 951-4100 www.lpcboston.com

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VERV I E W OVER VI EW
2010: Net Absorption
(831,700)

Q3 2011

Greater Boston Office Market For the second quarter in a row, the Greater Boston office market Q3 Absorption: 448,200 RSF recorded positive net absorption. With almost Asking Rate: $26.32/RSF 450,000 square feet of net absorption in the third quarter, the Greater Boston office market was lifted by momentum measured in Boston, Cambridge and an empty office-to-retail conversion out in Route 2 West. Strong leasing in the Seaport District, East Cambridge and Route 128 North submarkets all calculated strong Q3 growth. Direct Vacancy: 14.7% Furthermore, the Class B market contributed more heavily to growth than the Class A market did, with about a 3/ 4 to 1/ 4 contribution respectively. Class A space in Boston remained challenged by the number of large blocks of space available, but the level of negative absorption recorded in Q3 2011 tapered off significantly to only 14,000 square feet. Bucking the trend, Interstate 128 Norths Class A product measured a significant decrease in vacancy for a quarter absorption total of 226,000 square feet. Construction activity has jumped in 2011 mostly due to tenant demand in Cambridge. Vertexs new headquarters in Fan Pier kicked-off construction this summer and Biogens much anticipated return to Cambridge produced approximately 500,000 square feet of scheduled new construction in East Cambridge. Overall, these Cambridge tenants, plus others, are in the process of constructing and permitting over 2.5 million square feet of new lab and office space in Cambridge and Boston.
The unemployment rate for MA has remained below 8.0 percent since March 2011, settling at the current rate of 7.4 percent as of August 2011. Since the global economys financial health has recently been questioned by jittery markets and indebted governments, it is unclear how the states unemployment rate will be influenced over the next six months.

Boston
(246,100)

(182,300)

Cambridge
(25,600)

Class A Class B
216,400

Route 128
(282,233)

254,600

Interstate 495
84,400
-1,200,000 -800,000 -400,000 0 400,000 800,000 1,200,000

YTD 2011: Net Absorption

(505,600)

Boston

181,000

290,400

Cambridge
92,400

Class A Class B
(141,200)

Route 128
254,500

(129,600)

Interstate 495
(52,700)
-1,200,000 -800,000 -400,000 0 400,000 800,000 1,200,000

Unemployment Rate
10% 9% 8% 7% 6% 5% 4%
D '07 M '08 J '08 S '08 D '08 M '09 J '09 S '09 D '09 M '10 J '10 S '10 D '10 M '11 J '11

National Rate MA Rate

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VERV I E W OVER VI EW
Trend Remains Positive
Boston The Financial Districts Class A submarket continued to take a beating with vacancy Q3 Absorption: 92,000 RSF climbing every quarter in 2011. Although the negative Asking Rate: $38.84/RSF trend has slowly weakened with each passing quarter, the absence of growth in the Financial Districts Class A submarket has troubled landlords. On the other hand, the Class B product in the Financial District has measured positive net absorption in three of the last four quarters for a total of 102,600 square feet year-overyear. The Financial District was not the only Class B submarket that exhibited positive growth: Back Bay, Seaport District and South Station submarkets all posted positive absorption numbers year-over-year. Direct Vacancy: 12.3% The growth in the Class B market vs. the increase in vacancy measured in the Class A market can be attributed to a number of cyclical developments. First, the delivery of Atlantic W harf and Fan Pier contributed to significant negative absorption in the downtown Class A market without greatly impacting the Class B market. Furthermore, Class A tenants are typically financial service firms and law firms, both of which are areas of employment growth that have yet to return with any muscle. Class B tenants have also been hit by the lingering effects of the past recession, but these tenants are quietly and slowly expanding by 500 to 1,000 square feet. Lastly, the Class A market remains saturated with large blocks of space. A few significant tenant requirements could fill these blocks, but some will surely miss the current leasing cycle. Overall, the Class B market, although riddled with vacancy questions, is

Q3 2011

poised to absorb space with greater consistency than the Class A market, even if at a snails pace. Rental rates in the Class A market fell slightly in Q3 to just under $46.00 per square foot in the Financial District. Back Bay, the tightest submarket in Boston, overtook the Financial District in the third quarter, jumping by over a dollar per square foot to $46.22. With measured absorption growth in the Class B market came a rise in the average asking rate with a small gain of $.20 per square foot since Q2 to improve to $28.32 per square foot. The Financial Districts Class B average asking rate also improved to $28.89 per square foot.

Cambridge The Cambridge office market in 2011 absorbed a significant amount of space totaling over Q3 Absorption: 115,100 RSF 380,000 square feet yearto-date. The East and Mid Asking Rate: $37.56/RSF Cambridge submarkets led the charge with Class A vacancies dropping to 4.9 percent and 6.0 percent respectively. A year ago, East Cambridges Class A vacancy measured 12.2 percent. The drop in East Cambridge Class A product has been due to healthy growth by technology tenants, conversions of office buildings into lab and a large lease signed by Pega Systems at One Rogers Street for 163,000 square feet in Q2 2011. Direct Vacancy: 7.4% With space tightening in East and Mid Cambridge, rental rates are moving aggressively north. At the conclusion of the third quarter,

The Return of the Headquarters Office?

Sovereign Bank
Announced recently that it will make Boston its headquarters and consolidate Northeast offices in the city.

Sears
The company has been vocal about leaving their campus in Illinois. Massachusetts has been an option for Sears in addition to a few other locations.

Smith & Wollensky

Announced in the third quarter that it will lease space in Boston, which will serve as the restaurant chains new US headquarters.

ThermoEnergy Corporation
Announced in September that the companys headquarters will now be located in Worcester. The companys corporate headquarters were previously located in Little Rock, AR.

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VERV I E W OVER VI EW
the average asking rate for overall Cambridge office was $37.56 per square foot for an increase of over $2.00 per square foot from Q2 2011. In East Cambridge, the average asking rent jumped to $42.50 per square foot, up from last quarters $40.88 per square foot. Mid Cambridge also exhibited a strong surge in rents this past quarter with the average climbing to $40.87 per square foot from $38.18. Year-over-year, West Cambridge has calculated over 23,000 square feet of negative net absorption and a Class A vacancy rate of 33.1 percent. Although a majority of the vacancy was tracked to two struggling assets, 125 and 150 Cambridgepark Drive, the more difficult problem lies in the fact that East Cambridge tenants have begun to favor relocating to the Seaport District over West Cambridge. Fortunately, technology tenants from the Route 128 market are expected to aid West Cambridge, but that will likely take a year or so. Route 128 Three stories have emerged from the third quarters measured statistics in the Q3 Absorption: (2,500) RSF Route 128 market: growth in 128 North; neutrality in 128 Asking Rate: $21.54/RSF West; and a dip in 128 South. Starting with Route 128 North, the submarket absorbed over 175,000 square feet in the third quarter for a twelve month trend of approximately 275,000 square feet of net absorption. The improvements in the third quarter distinguished the Route 128 North submarket as the submarket with the most positive momentum of all the suburban submarkets (including Interstate 495). In this submarket, a majority of the new Direct Vacancy: 16.1%

Q3 2011

leasing activity took place along Corporate Drive in Burlington, but one of the most significant net absorption totals occurred from Dyaxs move of 44,500 square feet from Cambridge to 55 Network Drive in Burlington. In Route 128 West, leasing activity was quiet in the third quarter. The submarket expanded by a minimal 25,700 square feet in the third quarter, with the year-over-year net absorption total slipping to negative 16,300 square feet. One of the more notable transactions in the third quarter was Hitachi Data Systems relocation from 400 Totten Pond to 610 Lincoln Street in Waltham, resulting in a neutral change in absorption. In Route 128 South, large blocks of space continue to be added to the market with over 200,000 square feet of negative net absorption in the third quarter. Unfortunately, the submarket has exhibited a continued decline since growth leveled off in mid 2010. The most significant sore thumb in the third quarter was the 205,000 square foot vacancy of State Street at 105 Rosemont Street in Westwood. Interstate 495 The outer most belt of Greater Bostons office market, Direct Vacancy: 19.2% Interstate 495, underwent a Q3 Absorption: 240,700 RSF jolt in the third quarter. Yearover-year the market retains Asking Rate: $17.19/RSF a negative absorption total of 170,100 square feet, but the recent improvements measured in Route 2 West, 495 Northeast and Route 3 North lifted the overall Interstate 495 market into positive territory in the third quarter. Overall, vacancy along Interstate 495 fell from 20 percent in Q2 to 19.2 percent in the third quarter.

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VERV I E W OVER VI EW
However, the slated change in use of 400-440 Boston Post Road in Wayland from office to retail accounted for the entirety of the positive activity in Route 2 West. This change in use highlights the continued obstacles Interstate 495 office space faces as the economy lingers in a stagnate state. In the Class A market, increase in vacancy was recorded for Interstate 495, with over 76,000 square feet of negative absorption calculated. Although the Class A market in Interstate 495 remained within year-over-year positive absorption territory, the amount of future availability recorded in the Class A market (especially in Interstate 495 Mass Pike) discourages much future positive absorption in the Class A market. Fortunately, the Class B market does not contain as many question marks and could drive leasing velocity for the Interstate 495 market in the quarters to come. The sublease availability rate increased in the third quarter to 3.8 percent due to increases measured in Interstate 495 Mass Pike and Route 2 West. On the other hand, the total availability rate declined to 26.2 percent from 27 percent. As a result of the decline in availability, the average asking rate increased slightly to $17.19 per square foot. The rate has slipped by more than a dollar per square foot since Q3 2010. This decline has affected all submarkets with almost every one proportionally slipping by over a $1.00 per square foot since 2010.

Q3 2011

Significant Sales in Q3 2011

260 Tremont & 15 Kneeland, Boston $112,000,000 ($444/RSF) Buyer: ProMed Realty Services

225/235 Presidential Way, Woburn $85,300,000 ($193/RSF) Buyer: Piedmont REIT

250 Royall Street, Canton $57,000,000 ($308/RSF) Buyer: Hines REIT

Properties For Sale

Two Ledgemont Center, Lexington 202,500 RSF Seller: Beal Companies

377 Simarano Drive, Marlborough 156,600 SF Seller: Spear Street

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2011 R ecently Completed Leases/Sales
The Health Connector 13,780 RSF 100 City Hall, Boston Tenant Rep. - Brian Smallman & Brendan Miller Jove, Inc 9,000 RSF 17 Sellers Street, Cambridge Tenant Rep. - Jesse Flynn & Brendan Miller Brooke Private Equity 5,037 RSF 84 State Street, Boston Landlord Rep. - John D. Miller & Jeffrey C. Moore & Brendan Miller Brickley Sears & Sorett 4,076 RSF 75/101 Federal Street, Boston Tenant Rep. -Roberto Magno, CPA Eliza Corporation, Inc. 38,800 RSF 75 Sylvan Street, Danvers Tenant Rep. - Rob Cronin Romanow Container 104,435 RSF (Sale) 30 Porter Road, Littleton Buyer Rep. - Gregory H. Cahill, SIOR Pacific Packaging 44,000 RSF (Sale) 331 New Boston Street, Woburn Buyer Rep. - Rob Cronin PC Connection 19,882 RSF 293 Boston Post Road, Marlborough Landlord Rep. - Tim Latham

Q3 2011

INCOLN PDATES L I N C O LN UPDAT ES

LPC in MA

LPC Thank s
Cambridge
277,800 SF 287,000 SF 229,800 SF

Boston
270,600 SF 698,000 SF 4,038,600 SF

Leasing Leasing & Management Management Route 495 Route 128 Inner Suburbs Cambridge Boston

Capmark Bank for awarding Lincoln Property Companys management team with the 4 Van de Graaff assignment in Burlington.

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T ER M I N O L O G Y LO
Asking Rental Rate: the dollar per square foot amount that is quoted by the entity that is representing the space being marketed. Tenant Improvements (T.I.): typically a dollar per square Deliveries: newly completed product that was recently under construction or renovation that are available for immediate occupancy. Direct: space that is marketed on behalf of the Landlord. Flex: product that is capable of hosting tenants that vary in their use of commercial real estate. Including office, lab, R&D, warehouse, manufacturing and distribution tenants. Vacant Available: all space that is currently available to lease Free Rent: the time period the tenant does not have to pay any rent, which is agreed upon by the tenant and landlord during lease negotiations. Net Absorption: the change in direct vacancy over a measured time frame. Includes newly delivered product ready for occupancy, but does not include sublease. and immediately occupy; therefore, space that is not hosting a tenant. Unoccupied space with a future commitment are excluded. foot amount negotiated during the lease transaction that is paid to a tenant by the landlord, or sublandlord, for the means of improving the condition of the agreed upon space. Total Availability (A.K.A. Overall Availability): all space that is available for lease. Includes marketed occupied space, sublease, and product under construction that will be delivered within two (2) years. Sublease: space that is marketed on behalf of the current Tenant.

Lincoln Property Companys Office Preview precedes our more in depth Market Overview report, which will be published in late-October. If you have any questions regarding our statistical data please contact our Director of Research, Scott D. Faber at sfaber@lpc.com. Thank you.

All information provided in Lincoln Property Companys Office Preview are from sources deemed reliable, but no warranty or representation is made as to its accuracy thereof and same is submitted subject to errors, omissions, or other conditions.

(617) 951-4100 www.lpcboston.com

Research
Market
BOSTON Back Bay Charlestown Financial District Midtown North Station Seaport South Station CAMBRIDGE East Cambridge Mid Cambridge West Cambridge SUBURBAN Inner Suburbs ROUTE 128 128 West 128 North 128 South INTERSTATE 495 495/Mass Pike West 495/Route 2 West 495 North East Route 3 North 495 South All Ofce

Total Q3 2011 ~ Office Statistics

%
12.3% 4.6% 4.5% 16.1% 13.7% 12.0% 12.6% 8.5% 7.4% 5.2% 4.3% 17.4% 17.2% 11.9% 16.1% 14.2% 17.3% 17.6% 19.2% 16.4% 20.0% 25.3% 18.3% 24.8% 14.7%

Rentable Square Feet (RSF)

63,792,606 13,116,953 2,515,546 34,137,967 1,946,174 3,057,086 6,116,542 2,902,338 9,348,473 5,058,867 2,403,337 1,886,269 92,144,226 2,736,814 55,019,272 21,727,520 19,375,687 13,916,065 34,388,140 14,420,013 6,306,932 3,518,633 6,463,020 3,679,542 165,285,305

Direct Vacancy (sf)

7,851,511 602,323 113,428 5,483,706 266,494 366,899 772,793 245,868 693,284 260,586 104,162 328,536 15,814,986 326,556 8,874,745 3,077,119 3,351,747 2,445,879 6,613,685 2,362,799 1,262,730 891,594 1,182,601 913,961 24,359,781

Total Sublease Available (sf)

971,648 284,379 52,564 485,890 10,652 20,891 70,969 46,303 161,126 137,034 9,000 15,092 3,250,932 17,925 1,937,414 1,310,816 360,482 266,116 1,295,593 588,959 459,740 65,383 135,653 45,858 4,383,706

%
1.5% 2.2% 2.1% 1.4% 0.5% 0.7% 1.2% 1.6% 1.7% 2.7% 0.4% 0.8% 3.5% 0.7% 3.5% 6.0% 1.9% 1.9% 3.8% 4.1% 7.3% 1.9% 2.1% 1.2% 2.7%

Total Availability (sf)

9,817,653 1,094,369 298,079 6,459,250 279,171 396,307 982,443 308,034 925,171 435,196 123,162 366,813 21,182,078 360,184 11,800,575 4,878,136 3,903,272 3,019,167 9,021,319 3,801,862 1,889,533 970,652 1,362,718 996,554 31,924,902

%
15.4% 8.3% 11.8% 18.9% 14.3% 13.0% 16.1% 10.6% 9.9% 8.6% 5.1% 19.4% 23.0% 13.2% 21.4% 22.5% 20.1% 21.7% 26.2% 26.4% 30.0% 27.6% 21.1% 27.1% 19.3%

Q3 2011 Absorption (sf)

91,987 35,784 (21,892) (82,278) 9,843 12,543 127,597 12,702 115,115 62,481 57,540 (4,906) 241,129 2,934 (2,527) 25,720 178,202 (206,449) 240,722 (55,021) 288,408 47,275 21,239 (61,179) 448,231

12 Month Absorption (sf)

(751,130) 291,103 (59,220) (1,098,671) (42,756) (66,449) 150,451 74,412 282,912 260,100 45,858 (23,046) (373,489) (72,935) (130,496) (16,260) 274,963 (389,199) (170,058) 5,181 5,399 (42,347) (11,066) (127,225) (841,707)

Average Asking Rate

$38.84 $39.88 $30.41 $41.45 $24.96 $26.19 $35.42 $28.36 $37.56 $42.50 $40.87 $32.29 $19.67 $21.60 $21.54 $24.79 $20.27 $18.96 $17.19 $17.83 $16.13 $16.02 $17.33 $17.56 $26.32

All information provided in Lincoln Property Companys Market Statistics are from sources deemed reliable, but no warranty or representation is made as to its accuracy thereof and same is submitted subject to errors, omissions, or other conditions.

Net Absorption: the change in direct vacancy over a measured time frame. Includes newly delivered product ready for occupancy, but does not include sublease Total Availability: all space that is available for lease. Includes marketed occupied space and product under construction that will be vacated within two (2) years Vacant Available: all space that is currently available to lease and occupy; therefore, space that is not hosting a tenant. Spaces with future commitments are excluded Direct: space that is marketed on behalf of the Landlord Sublease: space that is marketed on behalf of the current Tenant Average Asking Rate: the average of a compiled set of direct asking rates per market as quoted by the landlord representative. In the Suburban markets, the average asking rate is plus tenant electric.

Research
Market
BOSTON Back Bay Charlestown Financial District Midtown North Station Seaport South Station CAMBRIDGE East Cambridge Mid Cambridge West Cambridge SUBURBAN Inner Suburbs ROUTE 128 128 West 128 North 128 South INTERSTATE 495 495/Mass Pike West 495/Route 2 West 495 North East Route 3 North 495 South TOTAL CLASS A

Class A Q3 2011 ~ Office Statistics

% Total Sublease Available (sf)
738,555 176,181 27,989 450,168 12,382 32,300 39,535 133,872 118,780 15,092 1,882,040 7,371 1,144,277 687,696 266,643 189,938 724,838 316,465 230,370 63,483 114,520 2,754,467

Rentable Square Feet (RSF)

41,218,241 9,275,565 903,771 25,107,596 1,175,982 1,388,388 2,232,384 1,134,555 6,314,601 4,009,373 1,370,255 934,973 53,501,217 2,037,747 33,455,366 13,343,546 13,270,008 6,841,812 18,008,104 7,905,223 3,258,432 1,732,763 3,781,245 1,330,441 101,034,059

Direct Vacancy (sf)

4,839,788 329,249 37,180 3,906,335 143,460 421,064 2,500 589,507 197,450 82,779 309,278 8,703,427 294,606 5,349,306 1,871,593 2,381,190 1,096,523 3,063,332 1,114,975 475,681 295,073 781,746 395,857 14,132,722

%
1.8% 1.9% 3.1% 1.8% 0.0% 0.9% 1.4% 3.5% 2.1% 3.0% 0.0% 0.0% 3.5% 0.4% 3.4% 5.2% 2.0% 2.8% 4.0% 4.0% 7.1% 3.7% 3.0% 0.0% 2.7%

Total Availability (sf)

6,093,085 607,340 74,400 4,759,962 143,460 15,024 453,364 39,535 767,799 350,650 92,779 324,370 12,176,398 315,642 7,026,988 2,729,728 2,742,987 1,554,273 4,832,438 2,252,884 843,488 372,231 932,978 430,857 19,037,282

%
14.8% 6.5% 8.2% 19.0% 12.2% 1.1% 20.3% 3.5% 12.2% 8.7% 6.8% 34.7% 22.8% 15.5% 21.0% 20.5% 20.7% 22.7% 26.8% 28.5% 25.9% 21.5% 24.7% 32.4% 18.8%

Q3 2011 Absorption (sf)

(13,963) 47,173 2,411 (147,200) 86,153 (2,500) 66,722 37,135 37,963 (8,376) 54,240 19,798 127,027 (71,541) 225,998 (27,430) (76,604) (62,584) (39,108) 32,767 9,131 (16,810) 106,999

12 Month Absorption (sf)

(926,547) 233,258 (23,811) (1,201,243) 1,155 6,383 60,211 (2,500) 214,757 217,148 33,687 (36,078) (353,812) (94,859) (275,464) (117,179) 59,774 (218,059) 12,694 56,690 (11,636) 75,441 (81,059) (26,742) (1,065,602)

Average Asking Rate

$45.14 $46.22 $27.67 $45.94 $26.00 $$44.67 $38.00 $38.51 $44.55 $43.00 $32.63 $21.05 $22.50 $23.90 $27.35 $22.61 $21.07 $18.59 $18.89 $16.25 $18.57 $18.95 $19.90 $29.65

11.7% 3.5% 4.1% 15.6% 12.2% 0.0% 18.9% 0.2% 9.3% 4.9% 6.0% 33.1% 16.3% 14.5% 16.0% 14.0% 17.9% 16.0% 17.0% 14.1% 14.6% 17.0% 20.7% 29.8% 14.0%

All information provided in Lincoln Property Companys Market Statistics are from sources deemed reliable, but no warranty or representation is made as to its accuracy thereof and same is submitted subject to errors, omissions, or other conditions.

Net Absorption: the change in direct vacancy over a measured time frame. Includes newly delivered product ready for occupancy, but does not include sublease Total Availability: all space that is available for lease. Includes marketed occupied space and product under construction that will be vacated within two (2) years Vacant Available: all space that is currently available to lease and occupy; therefore, space that is not hosting a tenant. Spaces with future commitments are excluded Direct: space that is marketed on behalf of the Landlord Sublease: space that is marketed on behalf of the current Tenant Average Asking Rate: the average of a compiled set of direct asking rates per market as quoted by the landlord representative. In the Suburban markets, the average asking rate is plus tenant electric.

Research
Market
BOSTON Back Bay Charlestown Financial District Midtown North Station Seaport South Station CAMBRIDGE East Cambridge Mid Cambridge West Cambridge SUBURBAN Inner Suburbs ROUTE 128 128 West 128 North 128 South INTERSTATE 495 495/Mass Pike West 495/Route 2 West 495 North East Route 3 North 495 South TOTAL CLASS B

Class B Q3 2011 ~ Office Statistics

%
13.3% 7.1% 4.7% 17.5% 16.0% 22.0% 9.1% 13.8% 3.4% 6.0% 2.1% 2.0% 18.4% 5.1% 16.3% 14.4% 15.9% 19.1% 21.7% 19.2% 25.8% 33.4% 14.9% 22.1% 15.9%

Rentable Square Feet (RSF)

22,574,365 3,841,388 1,611,775 9,030,371 770,192 1,668,698 3,884,158 1,767,783 3,033,872 1,049,494 1,033,082 951,296 38,643,009 699,067 21,563,906 8,383,974 6,105,679 7,074,253 16,380,036 6,514,790 3,048,500 1,785,870 2,681,775 2,349,101 64,251,246

Direct Vacancy (sf)

3,011,723 273,074 76,248 1,577,371 123,034 366,899 351,729 243,368 103,777 63,136 21,383 19,258 7,111,559 35,767 3,525,439 1,205,526 970,557 1,349,356 3,550,353 1,247,824 787,049 596,521 400,855 518,104 10,227,059

Total Sublease Available (sf)

233,093 108,198 24,575 35,722 10,652 8,509 38,669 6,768 27,254 18,254 9,000 1,011,900 5,000 436,145 266,128 93,839 76,178 570,755 272,494 229,370 1,900 21,133 45,858 1,272,247

%
1.0% 2.8% 1.5% 0.4% 1.4% 0.5% 1.0% 0.4% 0.9% 1.7% 0.9% 0.0% 2.6% 0.7% 2.0% 3.2% 1.5% 1.1% 3.5% 4.2% 7.5% 0.1% 0.8% 2.0% 2.0%

Total Availability (sf)

3,724,568 487,029 223,679 1,699,288 135,711 381,283 529,079 268,499 157,372 84,546 30,383 42,443 8,648,688 43,212 4,416,595 1,791,416 1,160,285 1,464,894 4,188,881 1,548,978 1,046,045 598,421 429,740 565,697 12,530,628

%
16.5% 12.7% 13.9% 18.8% 17.6% 22.8% 13.6% 15.2% 5.2% 8.1% 2.9% 4.5% 22.4% 6.2% 20.5% 21.4% 19.0% 20.7% 25.6% 23.8% 34.3% 33.5% 16.0% 24.1% 19.5%

Q3 2011 Absorption (sf)

105,950 (11,389) (24,303) 64,922 9,843 12,543 41,444 15,202 48,393 25,346 19,577 3,470 186,889 (883) (129,554) 97,261 (47,796) (179,019) 317,326 7,563 327,516 14,508 12,108 (44,369) 341,232

12 Month Absorption (sf)

175,417 57,845 (35,409) 102,572 (43,911) (72,832) 90,240 76,912 68,155 42,952 12,171 13,032 (19,677) 18,107 144,968 100,919 215,189 (171,140) (182,752) (51,509) 17,035 (117,788) 69,993 (100,483) 223,895

Average Asking Rate

$28.62 $31.97 $32.50 $28.89 $23.86 $26.19 $27.50 $26.94 $32.67 $34.00 $34.37 $29.75 $18.13 $21.17 $19.81 $23.06 $18.18 $17.49 $16.25 $16.96 $16.05 $14.39 $16.26 $16.97 $21.55

All information provided in Lincoln Property Companys Market Statistics are from sources deemed reliable, but no warranty or representation is made as to its accuracy thereof and same is submitted subject to errors, omissions, or other conditions.

Net Absorption: the change in direct vacancy over a measured time frame. Includes newly delivered product ready for occupancy, but does not include sublease Total Availability: all space that is available for lease. Includes marketed occupied space and product under construction that will be vacated within two (2) years Vacant Available: all space that is currently available to lease and occupy; therefore, space that is not hosting a tenant. Spaces with future commitments are excluded Direct: space that is marketed on behalf of the Landlord Sublease: space that is marketed on behalf of the current Tenant Average Asking Rate: the average of a compiled set of direct asking rates per market as quoted by the landlord representative. In the Suburban markets, the average asking rate is plus tenant electric.