2012 Global Market report - NAI Global

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Guangzhou, China Contact NAI Curzon +852 2180 6308 Country Data Area (Sq Mi) GDP Growth GDP 2011 (US$ B) GDP/Capita (US$) Inflation Rate Unemployment Rate Interest Rate Population (Millions) 3,722,029 Real estate investment increased 2% from January to August 2011 to RMB179.1 billion. The economy is experiencing steady growth with inspired entrepreneurs executing business expansion plans in Guangzhou. The government is reporting encouraging signs for property development. In June 2011, the Government announced ratios for commercial and residential land supply will be adjusted to 2:3. Government support for commercial property development is expected and an increase in development for office and retail facilities could be seen in 2012. Momentum for new office building construction was strong in 3Q 2011. A total of seven new office buildings provided approximately 0.97 million SM of new space that was introduced to the market, and 1.9 million SM office/ commercial projects in the pipeline in Q3 2011. Future office supply leasing interest become more active after the Asian Games. Demand was generated by high-end office users from financial, insurance, manufacturing, IT and trading industries. The overall Class A office rental in secondary markets realized up to RMB153/SM per month in Q3 2011, representing a 14.7% increase quarter-on-quarter. Due to the large amount of new office buildings entering the market, the overall vacancy rate reached 13.1%, an increase of 2.9% quarter-on-quarter in Q3 2011. However, unconcerned by the strong expansion demand from financial and insurance enterprises, the market generally believes that Class A office rentals will stay on an upward track in 2012. The average office rental expects to increase 5% to 10% in 2012. From January to August 2011, total sales of consumer goods in Guangzhou amounted to RMB 326.3 billion (US $51), representing an increase of 3% year-on-year. At the end of Q3 2011, the overall inventory of shopping centers included up to 1.10 million SM of retail space in the market. The overall average vacancy rate reached 10.1% in Q3 2011, dropping by 0.85% quarter-on-quarter. Rental values for retail space ranged from RMB 600 to RMB 1,200/SM per month, depending on the distance from major transportation hubs and tourist attractions. Prime rent for retail space could bring as much as RMB 1,800/SM per month. In 2012, new retail facilities available in Zhujiang New Town and Huanshidong districts will provide up to 160,000 SM of retail space. On the back of sustainable demand from retailers who whish to expand their footprint in major cities and set up flagship stores in new tourist attraction points, average retail rent is expected to see an upward trend in 2012. Guangzhou At A Glance conversion 6.83 rmb = 1 us$ RENT/M 2 /MO US$ RENT/SF/YR low High low High Vacancy doWntoWn offIce New Construction (AAA) Class A (Prime) RMB RMB 190.00 280.00 RMB 260.00 $ 31.01 RMB 330.00 $ 45.70 $ $ 42.44 53.86 8.00% 2.70% Class B (Secondary) suburban offIce New Construction (AAA) RMB RMB 110.00 103.00 RMB 180.00 $ 17.95 RMB 163.00 $ 16.81 $ $ 29.38 13.10% 26.61 11.00% Class A (Prime) RMB 90.00 RMB 180.00 $ 14.69 $ 29.38 5.70% Class B (Secondary) IndustrIal Bulk Warehouse RMB RMB 40.00 35.00 RMB RMB 60.00 $ 45.00 $ 6.53 5.71 $ $ 9.79 12.40% 7.35 10.00% Manufacturing RMB 16.00 RMB 32.00 $ 2.61 $ 5.22 5.00% High Tech/R&D retaIl RMB 40.00 RMB 50.00 $ 6.53 $ 8.16 15.00% Downtown Neighborhood Service Centers RMB RMB 600.00 600.00 RMB 1,800.00 $ 97.94 RMB 750.00 $ 97.94 $ 293.81 $ 122.42 5.00% 8.00% Community Power Center RMB 500.00 RMB 800.00 $ 81.61 $ 130.58 10.00% Regional Malls RMB 1,000.00 RMB 1,750.00 $ 163.23 $ 285.64 4.00% Solus Food Stores RMB 300.00 RMB 1,000.00 $ 48.97 $ 163.23 3.00% deVeloPment land low/m 2 High/m 2 low/acre High/acre Office in CBD Land in Office Parks Land in Industrial Parks Office/Industrial Land - Non-park Retail/Commercial Land Residential 9.6% $6,422.28 $4,763.87 2.7% 4.0% 6.6% 1,348.12 RMB 2,000.00 RMB 8,000.00 $ 1,185,025.67 $ 4,740,102.69 RMB 1,100.00 RMB 3,000.00 $ 651,764.12 $ 1,777,538.51 RMB 300.00 RMB 600.00 $ 177,753.85 $ 355,507.70 RMB 1,300.00 RMB 3,500.00 $ 770,266.69 $ 2,073,794.93 RMB 3,300.00 RMB 12,000.00 $ 1,955,292.36 $ 7,110,154.03 RMB 1,500.00 RMB 5,000.00 $ 888,769.25 $ 2,962,564.18 Hong Kong, SAR, China Contact NAI Asia Pacific Properties +852 2281 7800 Country Data Area (Sq Mi) GDP Growth GDP 2011 (US$ B) GDP/Capita (US$) Inflation Rate Unemployment Rate Interest Rate Population (Millions) 3,722,029 Strong rental and price rebounds early in the year yielded to an abrupt turnaround and mild retraction by year-end. Global uncertainties, surprise inflation and residential related cooling policies dampened the overall market. However this bodes well for prospective investors and corporate tenants seeking to enter or grow their presence, since fundamentals including China’s ongoing growth and the global focus on China’s consumer market, all support Hong Kong’s longer term position as the business center for Asia. Hong Kong economic growth slowed from 7.0% in 2010 to approximately 5% in 2011. However during this period inflation surged from 2.4% to approximately 6%. Although prime interest rates have remained stable at 5% and unemployment rates have remained low at approximately 3%, the trends of slowing growth and rising costs have impacted market confidence, consumer spending and real estate in general. The commercial real estate market performed in line with the economic growth. Office rents rose about 13% in the first three quarters before leveling abruptly in Q4 2011. Vacancies dropped from 6.5% to 5.0% over the same period, and a very active leasing market in 1H 2011 saw vacancies decline in the prime CBD to a record low of sub-3%. Decentralization to secondary business districts was a prevalent theme in 2H 2011. The retail sector remained the best performer among all commercial segments. Powered by the affluent shoppers from mainland China, total retail sales grew by approximately 20%. Intense competition for prime locations from both local and international retailers is increasingly evident, with prominent new entries by Abercrombie & Fitch and Gap. Prime street-level rents in Central and Causeway Bay increased by 30% to 50% while average sale prices climbed by 13%. The industrial sector saw rents increase by approximately 10% while investment values jumped by about 25%, driven by rezoning and redevelopment opportunities. The government announced a new plan to transform the aging industrial district of East Kowloon into a new CBD. Older industrial blocks will be converted into office, commercial and hotel developments, a process that is expected to take place over the next two decades. The investment market continued its rapid recovery and was extremely active in the first half of the year with yields sub-3%, though essentially halted in Q3 and Q4 as global uncertainty increased. It is expected that investment volumes will recover with greater clarity on the global situation as the divide between purchasers and sellers contracts. Hong Kong At A Glance conversion 7.80 Hkd = 1 us$ RENT/SF/MO US$ RENT/SF/YR low High low High Vacancy doWntoWn offIce New Construction (AAA) Class A (Prime) HKD HKD 125.00 85.00 HKD 190.00 $ 192.31 HKD 150.00 $ 130.77 $ 292.31 $ 230.77 2.00% 4.00% Class B (Secondary) suburban offIce New Construction (AAA) HKD HKD 45.00 48.00 HKD HKD 80.00 $ 69.23 70.00 $ 73.85 $ 123.08 $ 107.69 5.00% 5.00% Class A (Prime) Class B (Secondary) IndustrIal Bulk Warehouse Manufacturing High Tech/R&D retaIl HKD HKD HKD HKD HKD 35.00 25.00 10.00 12.00 20.00 HKD HKD HKD HKD HKD 45.00 $ 53.85 28.00 $ 38.46 12.00 $ 15.38 15.00 $ 18.46 25.00 $ 30.77 $ $ $ $ $ 69.23 43.08 18.46 23.08 38.46 6.00% 8.00% 6.00% 6.00% 6.00% Downtown HKD 350.00 HKD 1,800.00 $ 538.46 $ 2,769.23 2.00% Neighborhood Service Centers HKD 60.00 HKD 100.00 $ 92.31 $ 153.85 10.00% Community Power Center HKD 50.00 HKD 70.00 $ 76.92 $ 107.69 10.00% Regional Malls HKD 120.00 HKD 300.00 $ 184.62 $ 461.54 5.00% Solus Food Stores N/A N/A N/A N/A N/A deVeloPment land low/m 2 High/m 2 low/acre High/acre Office in CBD Land in Office Parks Land in Industrial Parks Office/Industrial Land - Non-park Retail/Commercial Land Residential 9.6% $6,422.28 $4,763.87 2.7% 4.0% 6.6% 1,348.12 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 2012 Global Market Report n www.naiglobal.com 33

Shanghai, China Shenzhen, China Contact NAI Asia Pacific Properties +86 21 6288 7333 Country Data Area (Sq Mi) GDP Growth GDP 2011 (US$ B) GDP/Capita (US$) Inflation Rate Unemployment Rate Interest Rate Population (Millions) 3,722,029 9.6% $6,422.28 $4,763.87 2.7% 4.0% 6.6% 1,348.12 While cites around the world have struggled to recover from the world financial crisis and government debt, in 2011 Shanghai experienced quite the opposite. The market has turned to favor landlords once again, with excessive retail, office and industrial demand in key areas. Subsequently, the government has been forced to cool the market by repeatedly raising interest rates and imposing tighter regulations. The office market remains tight in Shanghai, with general forecasts for continued upward pressure on rentals. Despite several new office projects, including ICC T1, IFC T2, Taiping Finance Center and Eco City, amounting to some 1 million SM, demand has been such that prime buildings have still either reached full occupancy or enough for rental rates to increase by up to 10% quarter-over-quarter and overall average vacancy rates to reach 5%. Such buoyant demand has been attributed to the increased activity from MNCs alongside existing demand from SOEs. Although additional buildings are set to launch in 2012, current market conditions are unlikely to change much. Driven by government restrictions on land supply and bullish demand, the industrial and logistics market in Shanghai continued to show an uptrend in rents and sales prices (particularly for single story properties) of some 14% and 10% year-over-year, respectively. Logistics developers have been forced to build multi-story warehouses, though these will not be ready until well into 2012. Average prices for prime land (often the only source of new potential supply) are again the highest on record at RMB 1,600/SM, an increase of 5% year-on-year. Following accelerated growth in both rental performance and market absorption, prime retail rates have reached their highest level ever at more than RMB 50/SM per day, as numerous retailers continue to expand, including H&M’s largest store in China (3,000 SM), and Apple’s and Ikea’s largest in Asia (2,500 SM and 49,400 SM respectively). While tightened liquidity has restricted some, for others it has presented opportunities. Cash rich developers remain optimistic and have taken advantage of favorable conditions, such as SOHO, whose CEO plans to invest RMB 10 billion every year in Shanghai and aggressively targeted RMB 15 billion in 2011. By way of strata sales, the SWFC and Soho’s Exchange have now sold numerous floors (for around RMB 80,000/SM) in a market that rarely sees strata opportunities. Contact NAI Curzon +852 2180 6308 Country Data Area (Sq Mi) GDP Growth GDP 2011 (US$ B) GDP/Capita (US$) Inflation Rate Unemployment Rate Interest Rate Population (Millions) 3,722,029 9.6% $6,422.28 $4,763.87 2.7% 4.0% 6.6% 1,348.12 From January to August 2011, fixed asset investment was RMB 117.43 billion (US $18.35 billion), representing an increase of 17.4% year-on-year. Shenzhen’s import and export value in the first eight months amounted to US $271.01 billion with a yearly growth of 31.6%. Export values reached US $159.63 billion, up 32.8% year-on-year while the import value increased 29.8% year-on-year to US $111.38 billion. These economic fundamentals indicate that Shenzhen’s economic growth has continued at a steady pace. The overall office rate from January to August 2011 increased by 15% compared to the same period as last year, due to escalating inflation and office space demand which was generated by small, start-up companies. A number of Class A offices in the Luohu and Futian districts have remained 100% occupied since the beginning of 2011. The office expansion demand was generated from the finance, investment, logistics and manufacturing industries. The prime rent for office space could be as much as RMB 200/SM per month in Q3 2011, representing an increase of 4% quarter-on-quarter. It is expected that the overall capital value for office space in Shenzhen will record a double digit increase in 2012 due to escalating inflation and sustainable space demand. From January to August of 2011, total retail sales in Shenzhen grew by 17.6% year-on-year to reach RMB 2,261.88 billion (US $35.41 billion). The demand for retail space has been generated by the catering and food industries which targeted wealthy individuals who started to pursue a higher standard of living. As of Q3 2011, most shopping malls in the traditional shopping areas were fully occupied and had been since the beginning of 2011. Strong leasing activity encouraged developers to quickly launch new shopping facilities to the market, but with an increase in asking rents. In early March 2011, the government mandated that non-Shenzhen residents could only purchase residential properties if they have paid personal income tax and made contributions to social security to the city for at least one year and if their payments were in good standing. This act put a complete stop to any speculative activity made by non-Shenzhen residents, causing developers to become more cautious when launching their new residential projects. The capital value for residential properties expects to remain stable in 2012. Shanghai At A Glance conversion 6.83 rmb = 1 us$ RENT/M 2 /YR US$ RENT/SF/YR low High low High Vacancy doWntoWn offIce New Construction (AAA) Class A (Prime) Class B (Secondary) suburban offIce New Construction (AAA) Class A (Prime) RMB 2,737.50 RMB 4,745.00 $ 39.99 RMB 2,920.00 RMB 5,110.00 $ 42.65 RMB 1,850.00 RMB 2,737.50 $ 27.02 RMB 1,095.00 RMB 1,825.00 $ 15.99 RMB 1,168.00 RMB 1,825.00 $ 17.06 $ 69.31 $ 74.64 $ 39.99 $ 26.66 $ 26.66 15.00% 5.00% 5.00% 30.00% 10.00% Class B (Secondary) IndustrIal RMB 547.50 RMB 1,095.00 $ 8.00 $ 15.99 15.00% Bulk Warehouse Manufacturing RMB RMB 255.50 RMB 219.00 RMB 547.50 $ 438.00 $ 3.73 3.20 $ $ 8.00 6.40 7.00% 10.00% High Tech/R&D retaIl RMB 474.50 RMB 1,095.00 $ 6.93 $ 15.99 15.00% Downtown Neighborhood Service Centers RMB 3,600.00 RMB 18,240.00 $ 52.59 RMB 1,800.00 RMB 7,200.00 $ 26.29 $266.44 $105.17 3.00% 7.00% Community Power Center RMB 720.00 RMB 1,800.00 $ 10.52 $ 26.29 10.00% Regional Malls RMB 1,800.00 RMB 7,200.00 $ 26.29 $105.17 5.00% Solus Food Stores N/A N/A N/A N/A N/A deVeloPment land low/m 2 High/m 2 low/acre High/acre Office in CBD Land in Office Parks Land in Industrial Parks Office/Industrial Land - Non-park Retail/Commercial Land Residential RMB 4,750.00 RMB 192,850.00 $ 3,022,421.02 $ 122,710,293.37 RMB 1,425.00 RMB 7,600.00 $ 906,726.31 $ 4,835,873.63 RMB 420.00 RMB 2,100.00 $ 267,245.65 $ 1,336,228.24 N/A N/A N/A N/A N/A N/A N/A N/A RMB 4,500.00 RMB 35,500.00 $ 2,863,346.23 $ 22,588,620.25 Shenzhen At A Glance conversion 6.83 rmb = 1 us$ RENT/M 2 /MO US$ RENT/SF/YR low High low High Vacancy doWntoWn offIce New Construction (AAA) Class A (Prime) Class B (Secondary) suburban offIce New Construction (AAA) RMB RMB RMB RMB 150.00 RMB 120.00 RMB 65.00 RMB 70.00 RMB 220.00 $ 24.48 301.00 $ 19.59 110.00 $ 10.61 120.00 $ 11.43 $ 35.91 $ 49.13 $ 17.95 $ 19.59 9.70% 8.00% 14.80% 15.00% Class A (Prime) Class B (Secondary) IndustrIal Bulk Warehouse Manufacturing High Tech/R&D retaIl RMB RMB RMB RMB RMB 60.00 RMB 45.00 RMB 20.00 RMB 32.00 RMB 39.00 RMB 105.00 $ 80.00 $ 40.00 $ 42.00 $ 78.00 $ 9.79 7.35 3.26 5.22 6.37 $ 17.14 $ 13.06 $ 6.53 $ 6.86 $ 12.73 18.00% 16.00% 4.00% 2.00% 6.00% Downtown Neighborhood Service Centers RMB RMB 900.00 RMB 2,000.00 $ 146.90 300.00 RMB 1,100.00 $ 48.97 $326.45 $179.55 5.00% 11.00% Community Power Center RMB 500.00 RMB 900.00 $ 81.61 $146.90 10.00% Regional Malls RMB 1,800.00 RMB 2,300.00 $ 293.81 $375.42 2.00% Solus Food Stores RMB 90.00 RMB 1,500.00 $ 14.69 $244.84 6.00% deVeloPment land low/m 2 High/m 2 low/acre High/acre Office in CBD Land in Office Parks Land in Industrial Parks Office/Industrial Land - Non-park Retail/Commercial Land Residential RMB 3,300.00 RMB 8,000.00 $ 1,955,292.36 $ 4,740,102.69 RMB 1,400.00 RMB 6,000.00 $ 829,517.97 $ 3,555,077.02 RMB 700.00 RMB 3,000.00 $ 414,758.99 $ 1,777,538.51 RMB 1,800.00 RMB 5,000.00 $ 1,066,523.10 $ 2,962,564.18 RMB 6,000.00 RMB 11,000.00 $ 3,555,077.02 $ 6,517,641.20 RMB 1,500.00 RMB 10,000.00 $ 888,769.25 $ 5,925,128.36 2012 Global Market Report n www.naiglobal.com 34

Page 1 and 2: 2012 Global Market report Values, t

Page 3 and 4: n n n table of contents General Inf

Page 5 and 6: Global Outlook US Year in Review As

Page 7 and 8: On the Road to Recovery % of Loss S

Page 9 and 10: 55% (1.1 million) owning and 45% (8

Page 11 and 12: short-term leases, the multifamily

Page 13 and 14: Alberta is home to Canada’s oil a

Page 15 and 16: Office The sovereign debt crisis an

Page 17 and 18: Area Type Q1 2010 Q2 2010 Q3 2010 Q

Page 19 and 20: obust telecom infrastructure and av

Page 21 and 22: egion’s cities. Nevertheless, lea

Page 23 and 24: For 2012, absorption in the commerc

Page 25 and 26: n us Highlights - northeast region

Page 27 and 28: n us Highlights - midwest region n

Page 29 and 30: n us Highlights - West region n Ari

Page 31 and 32: Adelaide, Australia Brisbane, Austr

Page 33: Sydney, Australia Beijing, China Co

Page 37 and 38: Chennai, India Mumbai, India Contac

Page 39 and 40: Jakarta, Indonesia Tokyo, Japan Con

Page 41 and 42: Christchurch, New Zealand Wellingto

Page 43 and 44: Taipei, Taiwan Ho Chi Minh City, Vi

Page 45 and 46: Calgary, Alberta, Canada Edmonton,

Page 47 and 48: Halifax, Nova Scotia, Canada Ottawa

Page 49 and 50: Regina, Saskatchewan, Canada Contac

Page 51 and 52: The Baltics (Latvia/Estonia/Lithuan

Page 53 and 54: Helsinki, Finland Paris - lle de Fr

Page 55 and 56: Tel Aviv, Israel Almaty, Kazakhstan

Page 57 and 58: Amsterdam, The Netherlands Oslo, No

Page 59 and 60: Moscow, Russia St. Petersburg, Russ

Page 61 and 62: Madrid, Spain Stockholm, Sweden Con

Page 63 and 64: Istanbul, Turkey Kiev, Ukraine Cont

Page 65 and 66: Leeds, England, United Kingdom Lond

Page 67 and 68: Latin America sectIon contents Buen

Page 69 and 70: Rio de Janeiro, Brazil Sao Paulo, B

Page 71 and 72: San Jose, Costa Rica Contact NAI Co

Page 73 and 74: Guadalajara, Jalisco, Mexico Guanaj

Page 75 and 76: Mexico City, Mexico Contact NAI Mex

Page 77 and 78: Saltillo, Coahuila, Mexico San Luis

Page 79 and 80: Lima, Peru Caracas, Venezuela Conta

Page 81 and 82: Birmingham, Alabama Huntsville/Deca

Page 83 and 84: Little Rock, Arkansas Bakersfield,

Page 85 and 86: Oakland, California Orange County,

Page 87 and 88: San Francisco, California Ventura C

Page 89 and 90: Hartford, Connecticut Wilmington, D

Page 91 and 92: Fort Lauderdale, Florida Ft. Myers/

Page 93 and 94: Miami, Florida Ocala/Gainesville, F

Page 95 and 96: Tampa Bay, Florida Atlanta, Georgia

Page 97 and 98: Boise, Idaho Southeast (Idaho Falls

Page 99 and 100: Fort Wayne, Indiana Indianapolis, I

Page 101 and 102: Des Moines, Iowa Sioux City, Iowa C

Page 103 and 104: Baton Rouge, Louisiana Lake Charles

Page 105 and 106: Greater Portland, Maine Baltimore,

Page 107 and 108: Greater Springfield, Massachusetts

Page 109 and 110: Minneapolis/St. Paul, Minnesota Jac

Page 111 and 112: Billings, Montana Bozeman, Montana

Page 113 and 114: Omaha, Nebraska Las Vegas, Nevada C

Page 115 and 116: Portsmouth, New Hampshire Atlantic

Page 117 and 118: Ocean/Monmouth Counties (“Shore M

Page 119 and 120: Las Cruces, New Mexico Albany, New

Page 121 and 122: Westchester, New York Asheville, No

Page 123 and 124: Raleigh/Durham, North Carolina Farg

Page 125 and 126: Cincinnati, Ohio Cleveland, Ohio Co

Page 127 and 128: Oklahoma City, Oklahoma Tulsa, Okla

Page 129 and 130: Berks County, Pennsylvania Bucks Co

Page 131 and 132: Philadelphia, Pennsylvania Philadel

Page 133 and 134: Wilkes-Barre/Scranton/Hazleton, Pen

Page 135 and 136: Sioux Falls, South Dakota Chattanoo

Page 137 and 138: Memphis, Tennessee Nashville, Tenne

Page 139 and 140: Corpus Christi, Texas Dallas, Texas

Page 141 and 142: Houston, Texas Contact NAI Houston

Page 143 and 144: Salt Lake City, Utah Washington Cou

Page 145 and 146: Northern Virginia Seattle/Puget Sou

Page 147 and 148: Madison, Wisconsin Milwaukee, Wisco

Page 149 and 150: n Glossary n Acre Area of land equa

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