2012 Global Market report - NAI Global

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Sofia, Bulgaria Prague, Czech Republic Contact NAI atrium +359 2 9704 803 Country Data Area (Sq Mi) GDP Growth GDP 2011 (US$ B) GDP/Capita (US$) Inflation Rate Unemployment Rate Interest Rate Population (Millions) 42,811 3.6% $45.59 $6,084.71 2.9% 7.6% 0.2% 7.493 After an interesting year of economic stagnation and uncertain development, Bulgaria returned in 2011 to a path of economic growth. An overall 3.6% GDP increase is expected by the government. The latest published inflation rate for 2011 is 4.5 % and the unemployment rate has reached a record high 11.2 %. The Sofia office market has recorded a number of significant transactions including the take-up of 2,500 SM by the Belgium KBC Bank and 5,000 SM by Hewlett Packard during the first half of 2011. A trend to better quality office space may soon lead to a reduction in the vacancy rate for Class A office buildings, even though the supply seems to still be a problem in this segment. The overall vacancy rate for office space (Class A and Class B) in Sofia is expected to rise to 30% by the end of 2011 with the completion of several new buildings; Sofia Airport Center, Vertigo Building, Sopharma & Litex Towers. Rental rates in the first half of the year were slightly reduced with prime rents at EUR 12 for Class A offices and EUR 8 for Class B. Rents will continue to remain under pressure since the supply was increased by at least 135,000 SM in 2011 and demand remained at a stable but low level. A new trend in the Bulgarian market was caused by the instability of the Greek economy. An influx of Greek companies and capital into the Bulgarian economy will positively affect the real estate market and eventually narrow the supply/ demand gap. Some of the most significant projects/ companies are the IKEA (opened in September 2011), Sofia Ring Mall (under construction), Hellenic Petroleum and Coca-Cola Hellenic Bottling Company. Although no new shopping malls opened in Sofia in 2011, the vacancy levels in the shopping centers and High Street locations are increasing. This is due to a decline in consumer spending by more than 30% and the large expansion of retail facilities in 2010. Nonetheless, there are several large scale retail projects in the pipeline. More than 120,000 SM is under construction and will be added to the market in 2012 - 2013. This negative environment has led to a strong reduction of retail rents and a higher vacancy in High Street and shopping center properties. Contact NAI MIPA +420 224 818 677 Country Data Area (Sq Mi) GDP Growth GDP 2011 (US$ B) GDP/Capita (US$) Inflation Rate Unemployment Rate Interest Rate Population (Millions) 30,450 2.2% $213.85 $20,500.62 2.0% 8.0% 0.8% 10.431 The Czech economy has weathered the 2008 financial crisis better than most former Central or Eastern European Countries but remains very much tied to the overall European economy, notably Germany. Foreign based investment continues to grow and will outstrip 2010 performance four fold. Office and ndustrial take-up remains stable year-on-year but supply has dropped. Total office stock in Prague stands at 2.77 million SM of which 72% is in new buildings. 105,750 SM of new supply is forecast to be completed in 2011. Gross take-up for 2011 is likely to exceed 220,000 SM. Office vacancy rates will remain at 10%. Space is set to become less readily available and landlord’s incentives are set to be reduced. Prague 4 continues to dominate the market as the district of choice with 27% of the total stock; Prague 1 has 16% and Prague 5 has15%. Prague 8 is beginning to establish itself as a recognized business area and there is good development land still available there in close proximity to the city center. Czech industrial stock now stands at 3.9 million SM. 420 000 SM of space was transacted in H1 2011, and by the end of this year we should see 1 million SM transacted across the country, with 55% in Prague alone. Vacancy now stands at 8.9%. Three developers continue to dominate the market, Prologis (34% share), CTP (25% share) and Point Park Properties (9%). Retail in the Czech Republic has seen little activity over the last two years, due mainly to the reluctance by the banks to finance anything considered risky, so pre-lets and equity are required. Many cities, including Prague, are reaching saturation so the scope for new large shopping centers is limited. The one exception was the opening of GTC’s Galeria Harfa project in Prague 9. Next year will see the opening of Rodamco/Unibail’s extension of Cerny Most and Multi Developments Nova Karolina in Ostrava, with both developments bringing 30,000 SM plus to the market. The residential market suffered over the last two years and has witnessed a drop of up to 25 % in prices since 2007. Few speculative developments have taken place recently and finance remains hard to obtain. Government tax intervention has further hampered the market. On the investment side, CPI, together with Teplice, purchased the Mlada Boreslav Futurum property from CA Immo. Sofia At A Glance conversion 0.72 eur = 1 us$ RENT/M 2 /MO US$ RENT/SF/YR low High low High Vacancy cItY center offIce New Construction (AAA) Class A (Prime) Class B (Secondary) suburban offIce New Construction (AAA) Class A (Prime) Class B (Secondary) IndustrIal Bulk Warehouse Manufacturing High Tech/R&D retaIl EUR 10.00 EUR 8.00 EUR 5.00 EUR 8.00 EUR 7.00 EUR 5.00 EUR 2.00 N/A N/A EUR 14.00 EUR 12.00 EUR 8.00 EUR 12.00 EUR 11.00 EUR 7.00 EUR 4.00 N/A N/A $ $ $ $ $ $ $ 15.48 12.39 7.74 12.39 10.84 7.74 3.10 N/A N/A $ $ $ $ $ $ $ 21.68 18.58 12.39 18.58 17.03 10.84 6.19 N/A N/A 30.00% 10.00% 15.00% 40.00% 15.00% 10.00% 8.00% N/A N/A City Center (High Street Shop) EUR 25.00 EUR 75.00 $ 38.71 $ 116.13 N/A Neighborhood Service Centers Community Power Center (Big Box) Regional Shopping Centers/Mall Solus Food Stores EUR 10.00 N/A EUR 10.00 N/A EUR 20.00 N/A EUR 30.00 N/A $ $ 15.48 N/A 15.48 N/A $ $ 30.97 N/A 46.45 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 EUR 300.00 EUR 800.00 $ 1,686,192.78 $ 4,496,514.08 N/A N/A N/A N/A N/A N/A N/A N/A EUR 50.00 EUR 80.00 $ 281,032.13 $ 449,651.41 EUR 300.00 EUR 800.00 $ 1,686,192.78 $ 4,496,514.08 EUR 100.00 EUR 500.00 $ 562,064.26 $ 2,810,321.30 Prague At A Glance conversion 0.72 eur = 1 us$ RENT/M 2 /MO US$ RENT/SF/YR low High low High Vacancy cItY center offIce New Construction (AAA) Class A (Prime) Class B (Secondary) suburban offIce New Construction (AAA) Class A (Prime) Class B (Secondary) IndustrIal EUR 21.00 EUR 15.00 EUR 12.00 EUR 14.50 EUR 14.00 EUR 10.00 EUR 22.00 EUR 18.00 EUR 13.00 EUR 15.50 EUR 15.00 EUR 12.00 $ 32.52 $ 23.23 $ 18.58 $ 22.45 $ 21.68 $ 15.48 $ 34.06 $ 27.87 $ 20.13 $ 24.00 $ 23.23 $ 18.58 N/A N/A N/A N/A N/A N/A Bulk Warehouse Manufacturing High Tech/R&D retaIl EUR EUR EUR 3.00 3.00 3.75 EUR EUR EUR 3.75 3.50 4.50 $ $ $ 4.65 4.65 5.81 $ $ $ 5.81 5.42 6.97 N/A N/A N/A City Center Neighborhood Service Centers EUR 140.00 EUR 40.00 EUR 160.00 EUR 45.00 $ 216.77 $ 61.93 $ 247.74 $ 69.68 N/A N/A Community Power Center (Big Box) EUR 8.00 EUR 10.00 $ 12.39 $ 15.48 N/A Regional Shopping Centers/Malls EUR 43.00 EUR 55.00 $ 66.58 $ 85.16 N/A Solus Food Stores EUR 8.00 EUR 10.50 $ 12.39 $ 16.26 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 EUR 320.00 EUR 500.00 $ 1,798,605.63 $ 2,810,321.30 EUR 120.00 EUR 150.00 $ 674,477.11 $ 843,096.39 EUR 35.00 EUR 50.00 $ 196,722.49 $ 281,032.13 EUR 20.00 EUR 25.00 $ 112,412.85 $ 140,516.06 EUR 50.00 EUR 75.00 $ 281,032.13 $ 421,548.19 EUR 50.00 EUR 100.00 $ 281,032.13 $ 562,064.26 2012 Global Market Report n www.naiglobal.com 51

Helsinki, Finland Paris - lle de France (Paris Region), France Contact NAI Premises +358 20 7290 710 Country Data Area (Sq Mi) GDP Growth GDP 2011 (US$ B) GDP/Capita (US$) Inflation Rate Unemployment Rate Interest Rate Population (Millions) 130,666 2.0% $234.72 $43,432.05 1.8% 8.7% 1.0% 5.404 Finland is still recovering from the recession but the optimistic atmosphere in the beginning of 2011 has turned to uncertainty because of the public dept crisis in Europe. GDP growth is expected to remain at 2% in 2011. The Finnish economy is dependent on foreign trade and problems in target countries will be reflected immediately in the economic growth. However, real estate professionals feel confident that going forward, investments in all areas of real estate properties should be a reliable, stable and profitable investment option compared with other investment opportunities. There is still 1 Million SM office space available in the greater Helsinki area with the vacancy rate at 11.5%. New, modern and efficient offices are sought after and many old properties and premises are being modernized. “Green building” is one of the key words being used in the market. Also many old office areas will be turned into residential homes in the next five to10 years. The retail sector has suffered the least over the past several years. Vacancy rates are relatively low and the rental prices have been stable. There are many projects for new retail parks and malls in the near future. In the greater Helsinki area many old industrial and harbor sites will be reconstructed for residential areas including local retail parks and shopping centers. Many foreign retail chains are actively looking at sites and premises to enter the Finnish market. The domestic retail chains are continuing to expand. The need for retail properties in the CBD areas of Helsinki, Tampere, Turku and others, especially university cities, will stay high and the demand will exceed the offerings. The industrial sector will face further difficulties over the next several years. The domestic manufacturing will most probably decrease when some production facilities move to China and other Far East countries. Thus the vacancy rate for older plants will increase rapidly in the future. It will be a big challenge to renovate these facilities and sites for new users as they are located mostly outside of the urban centers. The need for new modern logistic and warehouse premises will remain high and new construction projects will take place. Residential leasing possibilities will interest foreign investors due to the stability of cash flow and a low investment yield. During 2011 the following larger transactions were finalized: Suomi Life Assurance sold Fennia Quarter inkl offices+retail 39,700/SM in Helsinki to Sponda for €122 million. Etera&Sitra sold Itämerentori offices 21,000/SM in Helsinki to Exillion for €85 million. Niam&Whitehall sold nine domestic office properties, 59,000/SM to Sveafastigheter for €60 million. Contact NAI France +33 1 74 90 50 32 Country Data Area (Sq Mi) GDP Growth GDP 2011 (US$ B) GDP/Capita (US$) Inflation Rate Unemployment Rate Interest Rate Population (Millions) 247,219 1.6% $2,590.79 $40,965.40 1.6% 9.8% 1.0% 63.243 Market activity in Q1 2011 was maintained by a 0.9% economic growth generated by a high level of internal consumption. In Q2 2011 the household consumption correlated both to the economic uncertainties and the inflation level generated an abrupt end to the market growth. The increase in transaction volume in the retail market during Q1 2011 slowed down at the beginning of Q2. The office transaction volume registered in S1 2011 was up 3% at 1,135,000 SM compared to S1 2010. The office market in the Paris area was dominated by the small premises market with a 10% increase over the previous year where only 28 transactions above 5,000 SM where registered. Even if the immediate available stock were to be reduced by 2%, the vacancy rate would remain high at 6.7% representing 3,654,000 SM. In the investment market, EUR 5.2 billion was transacted on the French commercial real estate market; a 37% increase compared to S1 2010. The investment market remains strongly office orientated representing 64% of the volume whereas the retail and industrial markets represent 14% and 6% respectively of the total investments. In the Paris area EUR 3.3 billion was invested during S1 2011; a 39% increase compared to the previous year. Even with this increase in volume, players have been very cautious and continue to favor secured and liquid assets. The Euro crisis is on everyone’s mind and most players have stopped anticipating the next development. Predictions are difficult to make, nevertheless some basics will define the market. Regardless of the election results, the cost increase in the forecasted 2013 French debt and sovereign debts being actively scrutinized, the government will have to increase taxes and make major cuts to the budget. Private and public demand alone won’t generate growth. The rise of yields and the difficulty in lending will lead investors to be very discrete in the acquisition market with some having to sell properties to meet their due dates. Equity investors will have significant opportunities in the market, however the beginning of 2012 is expected to get off to a slow start. Elections will freeze major public decisions. It seems 2012 will be one of few bright spots with hopefully two positive influences; the small and medium premises market in the major cities should hold and cost reduction policies should pull the market upward. Helsinki At A Glance conversion 0.72 eur = 1 us$ RENT/M 2 /MO US$ RENT/SF/YR low High low High Vacancy cItY center offIce New Construction (AAA) Class A (Prime) Class B (Secondary) suburban offIce New Construction (AAA) EUR 22.00 EUR 22.00 EUR 17.00 EUR 18.00 EUR EUR EUR EUR 27.00 33.00 21.00 20.00 $ 34.06 $ 34.06 $ 26.32 $ 27.87 $ 41.81 $ 51.10 $ 32.52 $ 30.97 N/A 5.50% 7.60% 9.50% Class A (Prime) EUR 15.00 EUR 18.00 $ 23.23 $ 27.87 11.00% Class B (Secondary) IndustrIal EUR 8.00 EUR 13.00 $ 12.39 $ 20.13 13.50% Bulk Warehouse Manufacturing High Tech/R&D retaIl EUR EUR EUR 6.00 5.00 6.00 EUR EUR EUR 8.00 7.00 8.00 $ $ $ 9.29 7.74 9.29 $ 12.39 $ 10.84 $ 12.39 5.20% 5.30% 5.30% City Center Neighborhood Service Centers Community Power Center (Big Box) Regional Shopping Centers/Malls EUR 25.00 EUR 11.00 EUR 11.00 EUR 11.00 EUR EUR EUR EUR 140.00 44.00 40.00 44.00 $ 38.71 $ 17.03 $ 17.03 $ 17.03 $ 216.77 $ 68.13 $ 61.93 $ 68.13 2.70% 3.00% 3.10% 2.90% Solus Food Stores EUR 9.00 EUR 16.00 $ 13.94 $ 24.77 3.10% 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 N/A N/A N/A N/A EUR 275.00 EUR 500.00 $ 1,545,676.71 $ 2,810,321.30 EUR 175.00 EUR 300.00 $ 983,612.45 $ 1,686,192.78 EUR 225.00 EUR 275.00 $ 1,264,644.58 $ 1,545,676.71 EUR 250.00 EUR 400.00 $ 1,405,160.65 $ 2,248,257.04 EUR 250.00 EUR 600.00 $ 1,405,160.65 $ 3,372,385.56 Paris At A Glance conversion 0.72 eur = 1 us$ RENT/M 2 /YR US$ RENT/SF/YR low High low High Vacancy cItY center offIce New Construction (AAA) EUR 450.00 EUR 820.00 $ 58.06 $ 105.81 N/A Class A (Prime) Class B (Secondary) suburban offIce New Construction (AAA) Class A (Prime) Class B (Secondary) IndustrIal Bulk Warehouse Manufacturing High Tech/R&D retaIl EUR EUR EUR EUR EUR EUR EUR EUR 380.00 EUR 240.00 EUR 180.00 EUR 150.00 EUR 100.00 EUR 45.00 EUR 55.00 EUR 50.00 EUR 620.00 450.00 450.00 350.00 200.00 50.00 75.00 110.00 $ $ $ $ $ $ $ $ 49.03 30.97 23.23 19.35 12.90 5.81 7.10 6.45 $ $ $ $ $ $ $ $ 80.00 58.06 58.06 45.16 25.81 6.45 9.68 14.19 N/A N/A N/A N/A N/A N/A N/A N/A City Center EUR 1,500.00 EUR 7,000.00 $ 193.55 $ 903.22 N/A Retail Units in Parks Community Power Center (Big Box) Regional Shopping Centers/Malls Solus Food Stores 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 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 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 52

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

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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 and 34: Sydney, Australia Beijing, China Co

Page 35 and 36: Shanghai, China Shenzhen, China Con

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: The Baltics (Latvia/Estonia/Lithuan

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

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