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Office Submarket Dashboard Downtown Core

2013 Q2 SUBMARKET SNAPSHOT

MAP OF SUBMARKET

Indicators

2013 Q1

2013 Q2

Office Inventory*

33,668,264

33,668,264

Net Absorption1

8,748

-173,994

Vacancy Rate2

4.6%

5.1%

8.1%

9.5%

$18.82

$19.11

$14.79

$14.19

3

Availability Rate

Average Weighted Asking Rent

4

5

Average Additional Rent

Trend

tu q p p p q

*Office Inventory: For the purpose of this report, buildings with less than 10,000 SF of office space and buildings owned and occupied by the government have not been included in the office inventory. There are 127 office buildings surveyed in the Downtown Core office region.

AVAILABLE SUPPLY SPLIT Sublease % of Total Avail.

350

50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0%

SF (10,000's)

300 250

200 150 100 50

0 2012 Q1

2012 Q2

2012 Q3

2012 Q4

2013 Q1

GROSS RENT & AVAILABILITY BY BUILDING CLASS Avail. Office Space

Vacancy Rate

$19.11

Thousands (SF)

20

200 15 100 10 2012 Q1

2012 Q2

2012 Q3

2012 Q4

2013 Q1

2013 Q2

(100)

5

5.1%

(200)

0

1. Net absorption: The net change in physically occupied space between the current measurement period and the last measurement period. Net absorption can be either positive or negative. Preleasing activity is not included in net absorption calculations because pre-leasing does not involve any change in occupancy. 2. Vacancy rate: The amount of vacant space divided by the building inventory base. Vacant space is physically unoccupied, and it may or may not be available for lease or sublease. This is physical vacancy. It is not determined by whether or not a tenant is paying rent on the space. 3. Availability rate: The amount of available space divided by the building inventory base. Available space is space that is available for lease or sublease and may or may not be vacant. 3. Average Weighted Asking Rent: The average asking rent per square foot for buildings in an office market or submarket weighted by the total amount of square footage in the building. 4. Additional Rent comprises of operating costs and property taxes, per square foot per year. 5. Gross Rent: Obtained when adding additional rent to the net rent.

Asking Net Rent ($) / Vacancy Rate (%)

25

300

6

2,000

$42.00

$35

1,800 1,600

$30

1,400

$40

Asking Net Rent

400

Gross Rent

$45

2013 Q2

18-MONTH TREND Absorption

Not Avail. Office Space

$25

1,200 1,000

$25.03

$20

$17.39

$15

800 600

$10

400

$5

200 0

$Class A

Class B

SF (10,000's)

Direct Avail

Gross Rent $/SF

Sublease Avail

SUBMARKET CHARACTERISTICS *The Downtown Core, with the largest inventory of office space, offers a highly-skilled and welleducated labour pool. *The Core is home to many of the leading professional office users. *Limited parking, but quick access to public transit such as the metro, bus, train station and the PATH system, Montreal's underground walkway. *Easy access to major highways, namely the 720, 20 and 15. 20 minutes to P.E.T. airport. *Amenities and services such as restaurants, shopping, banking and workout facilities add convenience for employees and customers. *Total inventory: just over 33.6 million square feet.

Class C

Note: Not available office space (light blue) and available office space (dark blue) add up to the total inventory of office space in the respective building class. Quoted asking rents are based on a 5 year deal with TI's of $25.00 Class A, $20.00 Class B & C.

RECENT LEASE TRANSACTIONS 2-3, Place Ville Marie

VIA Rail Canada

67,413 SF

5, Place Ville Marie

Ordre des CGA

48,000

1, Place Ville Marie

Banque Royale du Canada

45,462

895, de la Gauchetière O.

Adacel Inc.

26,000

1250, René-Lévesque O.

Pavillion Global

15,039

Deloitte Tower

26 storeys

495,069

Aimia Tower

35 storeys

234,476

L'Avenue

8 storeys

140,000

UNDER CONSTRUCTION

Colliers International, 2013 Q2 This document has been prepared by Colliers International (Quebec) Inc. for advertising and general information only. Colliers International (Quebec) Inc. makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy, and reliability. Any interested party should undertake their own inquiries as to the accuracy of the information. Colliers International (Quebec) Inc. excludes unequivocally all inferred or implied terms conditions and warranties arising out of this document and excludes all liabilities for loss and damages arising there from. This publication is the copyrighted property of Colliers International (Quebec) Inc. and /or its licensor(s) © 2013 . All rights reserved.


Downtown core office market dashboard q2 2013