CBRE

Midtown South Manhattan Snapshot

www.cbre.com/research December 2011

Market Activity
Leasing Activity Absorption Availability A ailabilit Rate Vacancy Rate Average Asking Rent Taking Rent Index Nov 11 0.62 MSF (0.10) MSF 9.5% 9 5% 6.1% $45.19 PSF 98.0% Oct 11 0.28 MSF 0.13 MSF 9.3% 9 3% 6.6% $45.30 PSF 96.7% Nov 10 0.41 MSF 0.27 MSF 13.0% 13 0% 8.6% $43.46 PSF 91.5% YTD 11 4.76 MSF 1.69 MSF YTD 10 3.92 MSF 1.28 MSF

Definitions
Availability Space that is being actively marketed and is available for tenant build-out within 12 months. Includes space available for sublease as well as space in buildings under construction. Asking Rent Asking gross face rents (excluding all concessions and tenant electric). ) Leasing Activity Total amount of square feet leased within a specified period of time, including preleasing and purchases of space for occupancy and excluding renewals. Net Absorption The change in the amount of occupied square feet within a specified period of time. Taking Rent Actual initial base rent in a lease agreement (excluding all concessions and tenant electric). Taking Rent Index Initial taking rents (actual initial base rent excluding all concessions and tenant electric) as a percentage off asking rents; l ti) t ki t index represents a six-month rolling weighted average (for size and month). Vacancy Unoccupied space available for lease.

Hot Topics
R b t l i activity of 620 000 sq. ft.the hi h t monthly t t l since N Robust leasing ti it f 620,000 ft th highest thl total i November 2007 b 2007was fully double the five-year monthly average of 310,000 sq. ft. Midtown Souths total leasing activity through November 2011 was the highest year-to-date total since 2001. The availabilities that came online in Novemberincluding 411,000 sq. ft. at 101 Avenue of the Americasoffset the months strong leasing, pushing absorption into negative territory and fueling a 0.2-point increase in the overall availability rate. Year to date, Midtown South recorded 1.69 million sq. ft. of positive absorption, pacing ahead of 2010s positive 1.28 million sq. ft. p q The average asking rent ticked down $0.11 to $45.19 per sq. ft. in November.

Top Lease Transactions

Size (Sq. Ft.) 85,820 70,736 57,691* 55,307 42,500 Tenant Kate Spade We Work Tiffany & Company Foursquare Infor Address 2 Park Avenue 175 Varick Street 200 Fifth Avenue 568 Broadway 641 Avenue of the Americas
* Expansion

Major New Availabilities

411,000 sq. ft. of direct space at 101 Avenue of the Americas 150,000 sq. ft. of direct space at 675 Avenue of the Americas, which was already on the market, but fell within 12 months of tenant possession in November and was therefore reflected in availability statistics 50,000 sq. ft. of Credit Suisse sublease space at 315 Park Avenue South 18,000 sq. ft. of direct space at 114 West 26th Street 17,000 sq. ft. of direct space at 175 Varick Street
This Snapshot reflects market activity through November 30 2011 Unless otherwise agreed to in writing by CBRE this information may not be re 30, 2011. CBRE, redistributed in whole or in part to any third party.
2011 CBRE, Inc. CBRE statistics contained herein may represent a different data set than that used to generate National Vacancy and Availability Index statistics published by CBREs Corporate Communications Department or CBREs research and econometric forecasting unit, CBREEconometric Advisors. Information herein has been obtained from sources believed reliable. While we do not doubt its accuracy, we have not verified it and make no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the market. This information is designed exclusively for use by CBRE, and cannot be reproduced without prior written permission of CBRE.

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