2011_JLL_Chennai Real Estate_A Closer Look

Chennai Real Estate A Closer Look September 2011

Chennai Real Estate Timelines STPI starts operations at Chennai

Deccan Chronicle Group’s Odyssey opened its first bookstore in Chennai

1995

The City of ‘Madras’ changes its name to ‘Chennai’

Ford inaugurates its first manufacturing unit in India - a JV with Mahindra

1996

MRTS - Mass Rapid Transit System railway lines becomes operational

Mahindra Group sets up Mahindra World City - first integrated business city in the Public Private Partnership (PPP) model

Tamil Nadu Road Development Company Ltd (TNRDC) a JV between TIDCO and IL&FS was incorporated to develop road sector initiatives in PPP model

2006

Residential property prices in Chennai City skyrocket almost doubling in capital value compared to previous year

2007

Olympia Tech Park -an 1.8 million sq. ft IT space and the world’s largest LEED ‘Gold’ rated green building - becomes operational

2008

Kathipara Flyover - largest cloverleaf flyover in the whole of Asia - inaugurated and open to public

2009

Phase 1 of IT Expressway - 20 Kms stretch from Madhya Kailash to Siruseri - becomes operational

1997

1998

2010

The largest bus station in Asia Chennai Moffusil Bus Terminus was inaugurated in Koyambedu

MARG Group launches MARG Swarnabhoomi - the 24 Carat Neo City with 2 notified Special Economic Zones

Tata Housing launches its first-ever ‘affordable housing’ project in Oragadam

1999 TIDEL Park - Chennai’s first IT Park - became operational

Ennore SEZ gets formal approval to setup a multiproduct SEZ

2000

Tamil Nadu Urban Infrastructure Services Limited (TNUIFSL) appoints JLL to prepare re-development plan to create world class retail facilities with an integrated range of activities Chennai’s largest Mall - Express Avenue Mall - becomes operational

2011

By December 2011, 12 operational malls in Chennai

2012

Phase 1 of Kattupalli Shipyard - a mega project jointly developed by TIDCO and Larsen & Toubro (L&T) near Ennore to become operational

2001

2002 2013 MEPZ - Chromepet was converted into a Multi-product Special Economic Zone (SEZ)

Infosys Technologies lays foundation stone for IT Campus on 126 acres at Mahindra World City, New Chennai

Nokia inks deal with TN Government to setup an SEZ in Sriperumbadur - ‘Shenzen of India’

2003 2014

Total Stock of Chennai Office / Commercial space expected to cross 60 million sq ft, Proposed India-Singapore SEZ at Thiruvallur, a JV between TIDCO & Ascendas (Singapore)

2015

Airport Authority of India (AAI) expects greenfield airport at Sriperumbadur to be operational

2004

2005 Source: Real Estate Intelligence Service (Jones Lang LaSalle)

Chennai Real Estate – A Closer Look

Chennai Chennai is the fourth most populous metropolitan area and the fifth most populous city in India, with the urban agglomeration having an estimated population over 12.4 million people1.

Chennai’s economy has a broad industrial base in the automobile, computer, technology, hardware manufacturing, financial services and healthcare industries. Known as the Detroit of Asia, it accounts for over 60% of the country’s automobile exports. The city is India’s second largest exporter of software, information technology (IT) and information-technology-enabled services (ITES), next to Bangalore.

As the Entertainment Capital of the South, it is also home to the large South Indian Tamil film industry. The State Government of Tamil Nadu, after successfully establishing IT and Industrial Parks, is in the process of setting up Financial City and Media Entertainment Park, with an investment of over USD 2.5 billion.

Chennai’s economic development has been closely tied to its port and transport infrastructure. The city is served by two major ports namely Chennai Port (one of the largest artificial ports) and Ennore Port. The Chennai port is India’s second busiest container hub after Mumbai.

A rapidly growing population has increased the strain on Chennai’s

transport. A comprehensive rail network system is the next thing in the State Government’s ambitious plan to provide a diversified transport system for the city. The Government plans to have a 300-km monorail in a phased manner. Thus, Chennai will have the distinction of having four rail-network systems - the Chennai sub urban railways consisting of the electrical multiple units (covering a distance of 286 Kms) and the mass rapid-transit system (covering a distance of 25 Kms) , the other two being the metro rail (covering 45 Kms in Phase-I) and, in future, monorail.

With four major National Highways radiating outward from Chennai, the city is also served by the three major ring roads that are being developed. Similar to the MRTS rail system, a BRTS (Bus Rapid Transit System) is planned which will cover a distance of 70 Kms of Circular Corridor. An extension of the BRTS is the Chennai High Speed Circular Transportation Corridors (HSCTC) which is planned in select corridors, forming an elevated 2-tier system. At a distant future of completion is the proposed Chennai Elevated Expressways (CEE), a Road Network Development Scheme of the Second Master Plan by CMDA for the Chennai city. With the above proposed Chennai is expected to have four road-networks by year 2020.

Figure 2: Major Infrastructure Initiatives in Chennai Expansion of Existing Airport and Green field airport in Chennai

Expansion of existing international airport for which 1,070 acres of land has been acquired.

Greenfield airport proposed in Sriperumbudur for which 4,820 acres of land need to be acquired for expansion.

Proposed Metro Rail Corridor

A Detailed Project Report (DPR) relating to the Chennai Metro Rail Project was prepared and submitted by the Delhi Metro Rail Corporation Limited (DMRC). The DPR envisages creation of 2 initial corridors - the first from Washermenpet to Airport and the second from Fort to St Thomas Mount under the proposed Chennai Metro Rail Project.

Ennore - Manali Road Improvement Plan (EMRIP) Chennai Port Connecting Project

Widening of Ennore Expressway a 6.8 kms stretch connecting Chennai Port and National Highway network and improvement of arterial roads at an estimated cost of INR 1.5 billion

IT Expressway and ECR Road

Tamil Nadu Government has declared the 20 kms stretch of Old Mahabalipuram Road from Madhya Kailash to Siruseri as IT Corridor which further extends to Mahabalipuram in the second phase.

IT Expressway will be a 6-lane world-class highway with all attendant facilities.

Proposal for expansion of East Coast Road (New Mahabalipuram Road) into 4-lane road.

Outer Ring Road

The CMDA’s ambitious ‘Outer Ring Road’ covering 62 kms is to be done on BOOT model.

Elevated Express Way

India’s longest 4-way elevated expressway from the Chennai port to Maduravoyal will be ready in 2012 with project cost around INR 16.55 billion.

Extension of the MRTS line from Velachery to St.Thomas Mount

Proposal for extension of the Mass Rapid Transit system from Velachery to St.Thomas Mount in the Phase III.

Source: Jones Lang LaSalle Research 1Includes

Chennai, Thiruvallur and Kancheepuram per the Census of India 2011 Provisional Numbers

Chennai Real Estate – A Closer Look

Trends in Commercial Office Space in Chennai Chennai Office Stock to be Comparable to that of Present Day Mumbai by 2015

constitute 86% of the operational office stock in Chennai.

With 17 million sq ft of supply expected during 3Q11-4Q15, Chennai will continue to add more office space, and attain the current size of office stock of Mumbai during 2015.

Adequate volumes of office supply will keep hitting the markets every quarter, keeping the segment interesting for occupiers as well as investors.

The Chennai office market has witnessed remarkable growth from nearly 10 million sq ft in 4Q05 to 45 million sq ft in 2Q11. Every 13 quarters, Chennai has added 20 million sq ft of office space since 2006 (Figure 3). The growth has been mainly led by offices built for the IT industry (as IT Parks or IT Special Economic Zones), which

Figure 3: Growth of Office Stock in Chennai GROWTH OF STOCK (million sq ft)

60 msf in 4Q15

70 50 msf in 2Q12

60 50

30 msf in 1Q09

40

10 msf in 4Q05

30 20

13 quarters

10 0 4Q01

4Q02

4Q03

4Q04

4Q05

4Q06

4Q07

13 quarters 4Q08

4Q09

4Q10

4Q11

4Q12

4Q13

4Q14

4Q15

QUARTERLY SUPPLY (million sq ft) - Four Quarter Moving Average Rate of supply will fall as projects currently under initial stages of construction get delayed to 2013-2014

4.0 3.5 3.0

Rate of supply peaked @10 msf per year in 2008

2.5 2.0 1.5 1.0 0.5 2Q01

2Q02

2Q03

2Q04

2Q05

2Q06

2Q07

2Q08

2Q09

2Q10

2Q11

VACANCY (%) 35%

Vacancy has risen due to projects at farther locations becoming operational

30% 25% 20%

Despite high headline vacancy, projects near the city have high occupancy levels

15% 10% 5% 0% 4Q01

4Q02

4Q03

4Q04

4Q05

4Q06

Real Estate Intelligence Service (Jones Lang LaSalle), 2Q11

4Q07

4Q08

4Q09

4Q10

4Q11

4Q12

4Q13

4Q14

4Q15

Chennai Real Estate – A Closer Look

Despite High Headline Vacancy, Locations Near the City are Largely Occupied

within the city, since there is a severe dearth of high quality office buildings in the central areas.

2011 has ushered in renewed interest in Non IT office space in Chennai - especially from firms wishing to relocate their offices to better grade buildings. The expected fresh supply of Non IT office space should witness active absorption at the right rentals.

There will be greater demand for investment grade office spaces

In terms of IT office space, OMR remains a preferred destination, with most of the absorption expected before the toll plaza because of easier and more cost-effective commuting. Despite a current high headline vacancy of 31.6% at a city level, projects that are nearer to the city have low vacancies due to interest from occupiers (Figure 3).

20%

2005

2006

2007

BFSI

9% 14%

IT/ITES

10% 0%

Consulting Manufacturing/ Industry

60%

48%

67%

30%

70%

50% 40%

4% 21%

With an expected slowdown in the North American and European countries, the demand from IT industry, whose export revenues are highly dependent on these economies, will witness a slowdown during 2H11-2012. However, over a longer term, Chennai office market is expected to absorb nearly 4 million sq ft of office space annually till 2015.

20%

60%

56%

70%

Others

25%

80%

3% 15%

90%

7% 10%

100% 11% 5%

With Chennai being a major IT and Industrial hub, nearly 60%-70% of the demand for office space in Chennai is contributed by the IT/ITES and Manufacturing sectors (Figure 4).

Figure 4: Sector-wise Contribution to Office Leasing Transactions in Chennai

71%

Majority of Office Demand from IT/ITES and Manufacturing/Industrial sectors

2008

2009

2010

Source: Real Estate Intelligence Service (Jones Lang LaSalle)

Attractive Rents to Drive Demand for Office Space at Suburban Locations Rents in office properties in Chennai have largely remained stable for the past 6-7 quarters, but have yet to move into rents rising barring some locations in the Secondary Business District, which have already shown signs of improvement (Figure 5). Average gross rents across the three sub-markets of Chennai were observed to be in the below ranges.

Figure 5: Office Property Clock NCR Delhi Mumbai Kolkata Bangalore GROWTH Chennai SLOWING Hyderabad

2Q08

65 – 85

SBD

45 – 55

PBD

20 – 40

Attractive rentals are expected to drive demand for office real estate from cost sensitive occupiers in projects that are located after the toll plaza on the Old Mahabalipuram Road (OMR).

However, the office properties that are located before the toll plaza have witnessed healthy traction from occupiers leading to a firming up of rental values in the near to medium term.

Overall, the vacancy levels in PBD are expected to plateau, and rents will remain favourable to tenants during 2011-2012 (Figure 6).

VALUE DECLINING Hyderabad & Kolkata Chennai

DECLINE SLOWING

VALUE RISING

Sub-Market Rental Value Range (INR Per sq ft per month) CBD

2Q09

Pune Bangalore NCR Delhi Mumbai

Bangalore Kolkata Mumbai Pune NCR Delhi Chennai Hyderabad

2Q11

Source: Real Estate Intelligence Service (JLL), 2Q11

Figure 6: Occupier Traffic Lights 1H11

2H11

1H12

2H12

1H13

2H13

CBD SBD PBD Landlord Favouring

Balanced Market

Source: Real Estate Intelligence Service (JLL), 2Q11

Tenant Favouring

Chennai Real Estate – A Closer Look

Trends in Commercial Retail Space in Chennai

Of the above-mentioned locations, the high streets of Khadar Nawaz Khan Road (KNK Road) and Wallace Garden Road have emerged as important retail destinations for global luxury, fashion and premium brands.

Growth of Organised Retail Malls to Propel Further Growth Over the years, Chennai retail landscape has gone through a rapid retail transformation with the organized retail coming in to the foray.

Albeit at a lag, the Chennai city is fast catching up with the much mature retail markets of Mumbai, Delhi and Bangalore. With a cosmopolitan outlook, the city’s organized retail real estate market has improved in the recent times with the penetration of major foreign as well as domestic retailers and mall developers. The near

CBD

PBD

Source: Real Estate Intelligence Service (JLL), 2Q11

term outlook of the city remains healthy from a retail stand point; however, supply of quality retail malls remains a challenge.

Apart from the prime city which has already seen a healthy penetration of malls, the suburban area of Chennai is witnessing significant residential activity, with nearly 71,000 residential units under construction and likely to enter the market in the next three to four years. This indicates the potential of Chennai’s suburbs to emerge as an attractive retail destination. Bigger residential catchments in the suburban areas combined with more reasonable rentals compared to those in the prime city are expected to act as key driving forces for retailers to increase their presence in the suburban precinct of Chennai in the long term.

The additional mall supply is likely to be launched with high occupancy levels resulting in overall stability in the mall vacancy rate in the city. With more mall completions anticipated over the next three years, the city’s mall footprint is expected to rise annually from 2011 onwards. This trend is supported by the entry of malls by a few renowned developers such as Prestige Group, Phoenix Market City, PS Srijan and Marg Constructions (Figure 8). This growth will be aided by falling vacancy, growth of office and residential markets in suburban Chennai and development of quality retail malls.

Figure 8: Major Operational and Upcoming Retail Malls in Chennai Retail Mall

Location

Year of Completion

Status

Developer

City Center Mall, Chennai

RK Salai

2006

Completed

ETA Star Properties

Ampa Mall

Nelson Manickam Road

2009

Completed

Ampa Housing Development

Express Avenue Mall

Whites Road

2010

Completed

Express Infrastructure

Ramee Mall

Mount Road

2011

Completed

Ramee Group

Coramandel Plaza

OMR

2011

Completed

Surya Vardhan Estate

Forum, Chennai

Vadapalani

2012

Under Construction

Prestige Group

Market City, Chennai

Velachery

2014

Under Construction

Kshitij and Phoenix Mills

Marg Junction Mall

OMR

2012

Under Construction

Marg Constructions

The Grande

Velachery

2013

Under Construction

PS Group and Srijan

Source: Real Estate Intelligence Service (JLL), 2Q11

Velacherry

O.M.R.

SBD

Puraswalkam

T. Nagar

Vadapalaril

Mylapore

Kilpauk

Geams Road

Ashok Nagar

Besant Nagar

Alooarpet

Anna Nagar (2nd Avenue)

Adayar

R.K. Salai

KNK Road

160 140 120 100 80 60 40 20 0

Anna Salai

High Streets as a retail format formed the first wave of retail revolution in Chennai. With increasing globalization and cross cultural migration from within India owing to rapid expansion of businesses across regions and territories, the consumption pattern of the city’s working class went through a significant metamorphosis.

With the changing consumer landscape of the city, came the second wave of retail revolution which is the penetration of organized retail to cater to the demand of Gen-Y or the millennial generation.

Traditionally, top retailers in India leveraged on the footfall advantage of a mall to target the impulse purchasers and the conversion advantage of a high street for repeat purchasers. The Chennai retail market is no exception to the above-mentioned phenomenon.

Chennai’s high streets continue to remain as a favourite location for retailers as conversion rates in high streets are higher compared with those in malls. The neighbourhood of premium residential catchments, ample space for a hassle-free car park and proximity to the city centre are the key drivers of demand for high-end high streets.

Figure 7: Gross Rents at High Street Locations of Chennai

Nungambakkam

Established High Street Retailing Remains a Focus for Retailers

Chennai Real Estate – A Closer Look

Trends in Residential Space in Chennai

Marked as Years of Comeback, 2009 and 2010 Witnessed Healthy Absorption With Gradual Capital Value Growth The absorption rate which is an indicator that represents the sale velocity in the market was observed to have peaked during 3Q10 for mid-end and value housing segments. From a low of less than 20% during 2Q09, the absorption rates in mid and value housing were observed to be above 50%-mark by 3Q10. Due to the wait and watch strategy followed by the buyers in the residential market, the absorption rate primarily in mid-segment has tapered in the past 2-3 quarters. On the other hand, the value housing segment has shown a positive absorption trend during 1H2011.

It is interesting note that, since the economic recovery, the capital values recorded a trend reversal to witness healthy q-o-q growth between 2Q09 and 1Q11 (Figure 10). Post recovery, the average sizes of apartment configurations were also observed to have improved with a typical 3-BHK dwelling unit being marketed with an average saleable area2 of 1,400 sq ft or above.

2During

90%

40%

80%

35%

70%

30%

60%

25%

50%

20%

40%

15%

30% 20%

10%

10%

5%

0%

2Q09

3Q09

New Launches-High End Absorption Rate-High End

4Q09

1Q10

2Q10

3Q10

New Launches-Mid End Absorption Rate-Mid End

4Q10

1Q11

2Q11

Absorption Rate (%)

45%

0%

New Launches-Value Segment Absorption Rate-Value Segment

Source: Real Estate Intelligence Service (JLL), 2Q11 Note: 1. Projects that have residential units priced predominantly in the range of INR 40-60 Lakhs are categorised as the Mid-End Segment in Chennai; Projects priced at less than INR 40 Lakhs are categorised as the Value housing segment 2. Absorption rate of residential units in a particular quarter is defined as the ratio of residential sales and inventory.

Figure 10: Change in Capital Value Index by Segments 110

16%

105

12%

100

8%

95

4%

90

0%

85

-4%

80

-8%

75

-12%

70

1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11

Q-o-Q Change (%)

However, as new projects are getting launched at higher prices, the share of value housing segment in new launches is reducing and has declined from 97% in 2Q09 to 54% in 2Q11 (Figure 9).

100% Number of Units Launched / Absorbed

While Chennai city is home for Mid-to-High end projects, with geographic expansion of the city’s suburbs and increasing IT/ITES population across varied income levels resulted in opportunities in midend and value housing projects. However, residential supply in Chennai is skewed towards value and mid-end housing as the high-end projects have a relatively lesser representation at a city level. The premium pockets of Central Chennai and Off-Central Chennai predominantly comprise of high-end offerings as compared to the suburbs of Chennai that offers a good combination of high, mid and value residential projects. The representation of value housing projects is notable in all the four suburbs of Chennai, which are viewed as opportunity from both an investor as well as end-user perspective.

Figure 9: New Launches and Absorption Rate of Residential Units in Chennai by Segments

Base Capital Values Index (1Q08 = 100)

Residential Market in Chennai Dominated

By Mid-End and Value Housing Segments

-16%

QoQ Change-High End

QoQ Change-Mid End

QoQ Change-Value Segment

CV Index-High End

CV Index-Mid End

CV Index-Value Segment

Source: Real Estate Intelligence Service (JLL), 2Q11

the slowdown (2Q08 – 1Q09), a typical 3 BHK unit was marketed with an average saleable area of 1,200 sq ft as opposed to 1,400 sq ft during 1H11

Chennai Real Estate – A Closer Look

Authors Balakumaran GS Assistant Manager, Research and REIS balakumaran.gs@ap.jll.com +91 44 3095 1000 Balakumaran G S joined the Jones Lang LaSalle Research team in January 2011 and is responsible for the Real Estate Intelligence Service (REIS) publications. Based in Chennai, he contributes to research deliverables on office, retail and residential real estate markets in the country. Prior to joining the firm, Balakumaran worked in various profiles as an entrepreneur and in new business initiatives in the education industry for over four years in India. He holds an Engineering degree from Bharathidasan University and an MBA from IIPM, Delhi. He also holds a GNIIT Certification in Systems Management from NIIT, Chennai.

Hariharan Ganesan Manager, Research and REIS hariharan.ganesan@ap.jll.com +91 22 3307 1500 Hariharan Ganesan joined the Jones Lang LaSalle India in April 2008 and is responsible for managing the quarterly research offering - Real Estate Intelligence Service (REIS) publications. Based in Mumbai, he contributes to bespoke research publications on office, retail and residential real estate markets.

Prior to joining the Mumbai team, he managed research operations for Jones Lang LaSalle based out of Chennai region and has worked on multiple topical white papers, property market digests and bespoke research projects spanning diverse geographies within India. With over five years of research and marketing experience, Hariharan holds a dual degree from Bits Pilani and an MBA from IIPM, Delhi.

Himadri Mayank Assistant Vice President, Research & REIS himadri.mayank@ap.jll.com +91 22 3307 1500 Himadri Mayank manages the operations of Jones Lang LaSalle’s research offering - Real Estate Intelligence Service (REIS), and is responsible for the team’s outputs, including research reports such as topical whitepapers. Since joining the firm in 2008, he has delivered several bespoke research projects in the office, retail and residential sectors based on specific client requirements.

Himadri holds a bachelor’s degree from Indian Institute of Technology (IIT), Kharagpur and has over four years of experience in the field of real estate. He is pursuing the Chartered Financial Analyst (CFA) program offered by CFA Institute, Charlottesville and has passed the 2011 Level III CFA exam. He is the life member of Association for Promotion of Creative Learning, a not-for-profit organisation which aims to promote education for underprivileged through creativity and creative learning in society.

Ashutosh Limaye Head – Research and REIS ashutosh.limaye@ap.jll.com +91 22 3307 1500 Ashutosh Limaye is responsible for overseeing research and REIS business of JLL. He is also responsible for effective business development, selection, grooming and growth of professionals in the research division.

He has 14 years of experience, including one and half years of post graduation in planning with specialization in Urban Planning. His contributions include real estate market intelligence and forecasting, formulations of economic and physical plans, assessments of policies, legislations and regulatory mechanisms for delivery of infrastructure services, study of urban governance initiatives for urban management programmes, identification of appropriate modes of private sector participation in infrastructure delivery for large-scale infrastructure and township projects in the urban context, financial cost-benefit analyses, project formulation and appraisals, and urban land management.

About Jones Lang LaSalle Jones Lang LaSalle (NYSE:JLL) is a financial and professional services firm specializing in real estate. The firm offers integrated services delivered by expert teams worldwide to clients seeking increased value by owning, occupying or investing in real estate. With 2010 global revenue of more than USD 2.9 billion, Jones Lang LaSalle serves clients in 70 countries from more than 1,000 locations worldwide, including 200 corporate offices. The firm is an industry leader in property and corporate facility management services, with a portfolio of approximately 1.8 billion square feet worldwide. LaSalle Investment Management, the company’s investment management business, is one of the world’s largest and most diverse in real estate with USD 45.3 billion of assets under management.

Jones Lang LaSalle has over 50 years of experience in Asia Pacific, with over 20,800 employees operating in 77 offices in 13 countries across the region. The firm was named the Best Property Consultancy in Asia Pacific at ‘The Asia Pacific Property Awards 2011 in association with Bloomberg Television’. For further information, please visit our website, www.ap.joneslanglasalle.com

About Jones Lang LaSalle India Jones Lang LaSalle is India’s premiere and largest professional services firm specializing in real estate. With an extensive geographic footprint across eleven cities (Ahmedabad, Delhi, Mumbai, Bangalore, Pune, Chennai, Hyderabad, Kolkata, Kochi, Chandigarh and Coimbatore) and a staff strength of over 4000, the firm provides investors, developers, local corporates and multinational companies with a comprehensive range of services including research, analytics, consultancy, transactions, project and development services, integrated facility management, property and asset management, sustainability, warehousing and logistics, capital markets, residential, hotels, health care, senior living, education and retail advisory. For further information, please visit www.joneslanglasalle.co.in

Real Estate Intelligence Service (REIS) India is a subscription based research service designed to provide you with cutting

edge insights into India’s diverse and challenging real estate markets through collation, analysis and forecasts of property market indicators and trends across all major Indian markets across various real estate asset classes - office, retail, residential.

REIS empowers you with consistent and complete market data and analyses for all real estate indicators by specific micro markets.

It is supplemented by value added services including client briefings, presentations and rapid market updates.

For more details, contact, Ashutosh Limaye - ashutosh.limaye@ap.jll.com

For more details, contact Ashutosh Limaye Head - Research and REIS ashutosh.limaye@ap.jll.com +91 22 3307 1500

Himadri Mayank Assistant Vice President, Research & REIS himadri.mayank@ap.jll.com +91 22 3307 1500

COPYRIGHT © JONES LANG LASALLE All rights reserved. No part of this publication may be published without prior written permission from Jones Lang LaSalle. The information in this publication should be regarded solely as a general guide. Whilst care has been taken in its preparation no representation is made or responsibility accepted for the accuracy of the whole or any part. We stress that forecasting is a problematical exercise which at best should be regarded as an indicative assessment of possibilities rather than absolute certainties. The process of making forward projections involves assumptions regarding numerous variables which are acutely sensitive to changing conditions, variations in any one of which may significantly affect the outcome, and we draw your attention to this factor.