2012 Global Market report - NAI Global

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Frankfurt am Main, Germany Athens, Greece Contact NAI apollo +49 69 970 50 50 Country Data Area (Sq Mi) GDP Growth GDP 2011 (US$ B) GDP/Capita (US$) Inflation Rate Unemployment Rate Interest Rate Population (Millions) 137,882 2.0% $3,358.24 $41,235.74 1.4% 7.1% 1.0% 81.44 As forecasted by experts in 2010, Germany is reaching its economic strength once again. Three years after the economic crisis, the German GDP gained a constant growth rate between 1.5% and 2% over the last one and a half years. At the end of 2011 the German GDP growth rate is expected to reach its high point at 3.5%, before it returns to a moderate level about 2% in 2012. Other economic key factors demonstrate the recovery of the German economy. The unemployment rate has been consistently decreasing since 2005 (currently at 7%). This is the lowest unemployment rate since the German reunion in 1990. Inflation and buying power remain stable. As one of Europe’s most important cities Frankfurt/Main is clearly one of the main drivers responsible for this boost. Even though it anticipates a considerable increase in its population (from about 650,000 inhabitants in 2005 up to about 690,000 in 2011), unemployment in Frankfurt is sinking and currently even at 1.4% below the German average. Another hint of the economic strength of the city is the wealth of its inhabitants. The generated GDP per capita in Frankfurt is almost three times higher than the average, the buying power per capita is currently at 22,000 € while the common German citizen has just under 19,000 € at his disposal. In Frankfurt the rents for Class A retail space like Zeil and Goethestraße increased about €10/SM since 2010. The top rent on this famous shopping street is now at €240/SM. Due to the limited availability of retail space at these top locations, it is expected that the prices will continue to rise about 2% in 2012. Furthermore, this trend was reflected through the biggest investment that took place here so far in 2011. Allianz Versicherungen bought 80% of the project Skyline Plaza at a price of €290,000,000. When finished, a large part of the building will contain retail spaces. In the office market, a slight reduction in the vacancy rate took place. The rate dropped to 16.6% while rents remained stable. Overall there was a take-up of 311,000 SM of office space through the end of October 2011. An additional 258,000 SM are expected to be constructed by the end of 2012. The biggest lease of 2011 took place at the northern edge of Frankfurt. Bafin Wertpapier Aufsicht leased 24,200 SM of office space. A second big lease signing happened at the Airport. Fraport AG signed a contract for 20,000 SM. Contact NAI Global +1 609 945 4000 Country Data Area (Sq Mi) GDP Growth GDP 2011 (US$ B) GDP/Capita (US$) Inflation Rate Unemployment Rate Interest Rate Population (Millions) 50,949 -2.6% $291.40 $26,025.80 2.2% 14.6% 1.0% 11.197 As of November 2011, the Greek property market faced a daunting period of reduced consumer spending, rising taxes, falling property values, a surplus of properties and a frozen construction industry. Since 2009 the country has faced an acute economic crisis, the economy has shrunk by 12% to 15% in the last three years, unemployment is at 20% and the country faces the risk of defaulting on its debts and being ejected from the Eurozone. In Athens, there is a falling demand from occupiers as companies downsize or actually close. Take-up was 50,000 SM. Tenants continue to renegotiate their rents downward and there remains a short supply of good quality stock. Top rents are falling towards EUR 20/SM per month. There is limited interest in the industrial market and an increasing over supply of product as occupiers downsize. There are few transactions to report, rental values around Athens have fallen back to EUR 5/SM per month or lower. There has been a severe reduction in demand for retail space with many shops closing (68,000 small business closures estimated for 2010 and 2011 plus an additional 50,000 expected to close in 2012), especially in secondary locations with up to 25% vacancy, and many tenants renegotiating their rents downward by 30% or more. New shopping center projects are still proceeding although at a much slower pace. Recent openings including; River West 18,000 SM, Athens Metro Mall 25,000 SM and Athens Smart Park with up to 80,000 SM on completion. In the residential sector there is surprisingly still some recognizable demand for good quality, medium size new developments in the middle income to upper income neighborhoods in Athens (price range EUR 3,500 to 4,000/SM), from cash rich investors seeking safer alternatives. Small new apartments in the central areas also continue to attract buyers (c. EUR 3,000/SM). However the general state of the residential property market remains severely depressed with tens of thousands of unsold new apartments, and banks are unable to offer finance opportunities to potential borrowers. There is a reduced interest from international investors investing in commercial property due to the risk of Greece possibly defaulting, but there remains continued, limited interest from some of the local investment groups and also high net worth individuals seeking more safe investment alternatives than stock or money markets. Frankfurt am Main 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 Class A (Prime) Class B (Secondary) Average City Center suburban offIce Westend Class A (Prime) EUR 21.00 EUR 12.00 EUR 19.08 EUR 27.00 EUR EUR EUR EUR 38.00 35.00 29.58 34.00 $ $ $ $ 32.52 18.58 29.54 41.81 $ $ $ $ 58.84 15.50% 54.19 18.20% 45.80 15.80% 52.64 23.00% Westend Class B (Secondary) EUR 8.50 EUR 21.50 $ 13.16 $ 33.29 23.00% Suburban Class A (Prime) EUR 10.00 EUR 19.33 $ 15.48 $ 29.93 22.60% Suburban Class B (Secondary) IndustrIal Bulk Warehouse Manufacturing High Tech/R&D retaIl EUR EUR EUR EUR 5.42 3.50 3.50 5.50 EUR EUR EUR EUR 15.50 6.50 6.20 15.75 $ $ $ $ 8.39 5.42 5.42 8.52 $ $ $ $ 24.00 13.60% 10.06 20.70% 9.60 35.10% 24.39 35.00% City Center Neighborhood Service Centers EUR 120.00 EUR 120.00 EUR EUR 240.00 240.00 $ 185.80 $ 185.80 $ $ 371.61 19.00% 371.61 13.00% Community Power Center (Big Box) Regional Centers/Malls Solus Food Stores EUR EUR EUR 8.00 8.00 7.00 EUR EUR EUR 70.00 70.00 16.50 $ $ $ 12.39 12.39 10.84 $ $ $ 108.39 108.39 25.55 8.00% 8.30% 9.00% 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 EUR 1,500.00 EUR 12,000.00 $ 8,430,963.90 $ 67,447,711.16 EUR 230.00 EUR 1,020.00 $ 1,292,747.80 $ 5,733,055.45 EUR 80.00 EUR 245.00 $ 449,651.41 $ 1,377,057.44 EUR 300.00 EUR 1,200.00 $ 1,686,192.78 $ 6,744,771.12 EUR 300.00 EUR 1,200.00 $ 1,686,192.78 $ 6,744,771.12 EUR 300.00 EUR 1,500.00 $ 1,686,192.78 $ 8,430,963.90 Athens At A Glance conversion 0.72 eur = 1 us$ RENT/M2/MO US$ RENT/SF/YR low High low High Vacancy center cItY 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 City Center Neighborhood Service Centers Community Power Center (Big Box) Regional Shopping Centers/Malls Solus Food Stores EUR 18.00 EUR 22.00 $ 27.87 $ 34.06 N/A EUR 17.00 EUR 20.00 $ 26.32 $ 30.97 N/A EUR 14.00 EUR 18.00 $ 21.68 $ 27.87 N/A EUR 18.00 EUR 22.00 $ 27.87 $ 34.06 N/A EUR 13.00 EUR 16.00 $ 20.13 $ 24.77 N/A EUR 10.00 EUR 14.00 $ 15.48 $ 21.68 N/A EUR 4.00 EUR 6.00 $ 6.19 $ 9.29 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A EUR 120.00 EUR 200.00 $ 185.80 $ 309.67 N/A EUR 10.00 EUR 18.00 $ 15.48 $ 27.87 N/A EUR 25.00 EUR 35.00 $ 38.71 $ 54.19 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 EUR 1,600.00 N/A EUR 2,200.00 $ N/A 8,993,028.15 $ N/A 12,365,413.71 N/A Land in Industrial Parks Office/Industrial Land - Non-park EUR 60.00 N/A EUR 150.00 $ N/A 337,238.56 $ N/A 843,096.39 N/A Retail/Commercial Land EUR 2,300.00 EUR 3,000.00 $ 12,927,477.97 $ 16,861,927.79 Residential EUR 600.00 EUR 2,500.00 $ 3,372,385.56 $ 14,051,606.49 2012 Global Market Report n www.naiglobal.com 53

Tel Aviv, Israel Almaty, Kazakhstan Contact NAI Yair Levy Strategy + 972 3 613 66 99 Country Data Area (Sq Mi) GDP Growth GDP 2011 (US$ B) GDP/Capita (US$) Inflation Rate Unemployment Rate Interest Rate Population (Millions) 8,522 3.8% $212.40 $27,969.90 2.8% 7.2% 3.0% 7.594 In 2011, the real estate market moved in a positive direction with continued growth. Banks approved credit for the construction of large scale office and commercial projects and increases in the residential market lead to price increases in the real estate market. Reasons for the price increases were due mostly from the lack of investment opportunities in the capital market and low interest rates that drove clients to invest in real estate. However this trend changed in the summer of 2011. In early 2011, residential prices broke new records and price increases reached 15% compared to the first half of 2010. The office market also prospered and the demand for offices space exceeded supply. In Tel Aviv, new office projects were started with more than 350,000 SM added to the market. The commercial market prospered as well as we witnessed the integration of the three main groups that control the commercial centers in Israel; Azrieli Group, Melisron (British Israel group) and Gazit Globe Group. However, commercial activity dramatically slowed in malls and stores with the outbreak of social crisis in the summer of 2011. Hundreds of thousands of people demonstrated across the country against the high cost of living in Israel and launched a consumer boycott against the large food cooperative. As a result, the real estate market also suffered, especially in the residential sector. Since summer 2011, there has been a sever decrease in demand in the residential sector which is due to the apparent trend of price decreases that will begin in early 2012. The banks toughened credit conditions for entrepreneurs as a result of the intervention of the Central Bank, asking them to increase their capital and improve liquidity pending the crisis that may come from Europe. The offices market was also affected with little demand in this sector for rental/purchase. The only areas that weren’t damaged as a result of the summer demonstrations were the industrial and warehouse sectors, as demand is relatively strong and the business in this sector is continuing as usual. In the commerce field, we saw a decrease in the demand for rental shops. Store sales cycles showed a decrease in demand. The general direction for 2012 will be a decrease in prices (again a result of the demonstrations), a limit on lending that began with the strict credit conditions from the banks and the crisis that continues to threaten from other European countries. Contact NAI Aristan + 7 727 3115320 Country Data Area (Sq Mi) GDP Growth GDP 2011 (US$ B) GDP/Capita (US$) Inflation Rate Unemployment Rate Interest Rate Population (Millions) 1,052,100 5.1% $193.80 $11,805.00 9.0% 5.3% 7.5% 16.575 Due to the measures undertaken by the state to help support the economy, we have observed a stabilization of the Kazakh economy and the real estate market. We have witnessed development and investment activities in various regions of Kazakhstan. At the same time a number of new government programs targeted to restore residential real estate development activity were launched. The main factors hindering real estate development are the high interest rates and a lack of investment. In the first half of 2011 the office market for Class A and Class B class space totaled over 1 million SM. There have been no significant changes in rental rates compared to 2010. The biggest trends of 2011 include replacement of properties as a result of companies expanding, a decrease in the amount of vacant spaces and a low demand for existing office space. There was increased growth in the Retail market in 2011 as professional retailers continued their activity in Kazakhstan at a greater level. Both international and Russian brands show the strongest interest. An important event was the announcement by the Spanish group of companies Inditex, regarding the buyback of its franchise from Fawaz Alhokair and acquisition of the shops opened in Kazakhstan which they will now directly control. This transaction is evidence of the high profitability of the fashion retail sector in Kazakhstan. The Russian chain Sportsmaster also opened in Almaty. The increase in interest among retailers has influenced developer’s plans, who have announced a number of new projects. In the short term, new international brands will continue appearing in the Kazakhstan retail market. We expect to see new franchises of international brands come to Kazakhstan in 2012. According to our estimates, the warehouse market comprises a total area of approximately 800,000 SM. More than 70% of the existing warehouses stock was built during the Soviet time. During 2011 we observed the following trends; there were no significant changes to the warehouse rental rates compared to 2010, a persistently low demand for properties in the logistic/warehousing segment and slightly higher occupancy rates in the Almaty warehousing facilities. With the exception of retail, the real estate market is not stable and has yet to make a recovery. Restoration of the market will continue but total stabilization and further market growth is possible only with the full restoration of the banking sector. Tel Aviv At A Glance conversion 3.60 nIs = 1 us$ RENT/M 2 /MO US$ RENT/SF/YR low High low High Vacancy center cItY offIce New Construction (AAA) NIS 100.00 NIS 130.00 $ 30.97 $ 40.26 8.00% 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 NIS NIS NIS NIS NIS NIS NIS NIS 90.00 60.00 70.00 65.00 40.00 34.00 30.00 50.00 NIS NIS NIS NIS NIS NIS NIS NIS 120.00 75.00 80.00 70.00 50.00 40.00 35.00 60.00 $ $ $ $ $ $ $ $ 27.87 18.58 21.68 20.13 12.39 10.53 9.29 15.48 $ $ $ $ $ $ $ $ 37.16 23.23 24.77 21.68 15.48 12.39 10.84 18.58 8.00% 12.00% 20.00% 15.00% 17.00% 10.00% 10.00% 10.00% Downtown Neighborhood Service Centers NIS 150.00 NIS 140.00 NIS NIS 180.00 170.00 $ $ 46.45 43.35 $ $ 55.74 52.64 5.00% 6.00% Community Power Center (Big Box) NIS 75.00 NIS 90.00 $ 23.23 $ 27.87 N/A Regional Malls NIS 110.00 NIS 140.00 $ 34.06 $ 43.35 N/A Solus Food Stores NIS 60.00 NIS 85.00 $ 18.58 $ 26.32 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 NIS 4,000.00 NIS 5,000.00 $ 4,496,514.08 $ 5,620,642.60 NIS 2,200.00 NIS 2,700.00 $ 2,473,082.74 $ 3,035,147.00 NIS 1,200.00 NIS 1,800.00 $ 1,348,954.22 $ 2,023,431.33 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Almaty At A Glance conversion 148.06 kZt = 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 Downtown Neighborhood Service Centers Community Power Center Regional Shopping Centres/Malls Solus Food Stores KZT 6,207.00 KZT 7,390.00 $ 46.74 $ 55.64 35.00% KZT 3,842.00 KZT 7,390.00 $ 28.93 $ 55.64 14.20% KZT 2,956.00 KZT 4,434.00 $ 22.26 $ 33.39 13.50% N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A KZT 2,956.00 KZT 3,990.00 $ 22.26 $ 30.04 10.00% 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 KZT 3,103.00 KZT 14,780.00 $ 23.36 $ 111.29 1.00% KZT 1,478.00 KZT 4,434.00 $ 11.13 $ 33.39 11.00% KZT 3,103.00 KZT 18,622.00 $ 23.36 $ 140.22 2.00% KZT 10,346.00 KZT 18,475.00 $ 77.90 $ 139.11 5.00% 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 KZT 35,472.00 N/A KZT164,797.00 N/A $ 969,541.49 N/A $4,504,328.16 N/A Land in Industrial Parks Office/Industrial Land - Non-park KZT 2,867.00 N/A KZT 8,868.00 N/A $ 78,362.52 N/A $ 242,385.37 N/A Retail/Commercial Land Residential KZT 36,950.00 KZT 76,856.00 KZT 110,850.00 KZT 162,580.00 $1,009,939.05 $2,100,673.22 $3,029,817.15 $4,443,731.82 2012 Global Market Report n www.naiglobal.com 54

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 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 and 52: The Baltics (Latvia/Estonia/Lithuan

Page 53: Helsinki, Finland Paris - lle de Fr

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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