MID-YEAR Avison Young Office Market Report Canada, U.S. & U.K. Partnership. Performance.

Transcription

1 MID-YEAR 215 Avison Young Office Market Report Canada, U.S. & U.K. Partnership. Performance.

2 Contents Canada & U.S. Office Market Overview 3 Canada, U.S. and U.K. Office Market Highlights 4 Canada Calgary 9 Edmonton 1 Guelph (Southwestern Ontario) 11 Halifax 12 Lethbridge 13 Montreal 14 Ottawa 15 Quebec City 16 Regina 17 Toronto 18 Toronto West / Mississauga 19 Vancouver 2 Winnipeg 21 United States Atlanta 22 Austin 23 Boston 24 Charleston 25 Charlotte 26 Chicago 27 Cleveland 28 Columbus, OH 29 Dallas 3 Denver 31 Detroit 32 Fairfield County 33 Fort Lauderdale 34 United States cont d. Houston 35 Indianapolis 36 Las Vegas 37 Long Island 38 Los Angeles 39 Miami 4 Minneapolis 41 New Jersey 42 New York 43 Oakland 44 Orange County 45 Orlando 46 Philadelphia 47 Pittsburgh 48 Raleigh-Durham 49 Reno 5 Sacramento 51 San Diego County 52 San Francisco 53 San Mateo 54 Tampa 55 Washington, DC 56 West Palm Beach 57 United Kingdom London 58 Notes 59 About Avison Young 6 Our Contacts 61 Avison Young Research 62

3 Canada & U.S. Office Market Overview Economic headwinds challenge Canadian office market fundamentals, U.S. sector shows resilience The Canadian and U.S. office sectors appear to be moving in opposite directions. Stymied by less-than-stellar economic results, Canadian markets are seeing mixed performance, while U.S. indicators have been largely positive. Despite the differences, there are similarities mounting concern surrounding depressed oil prices and the burden placed on markets tied to the energy industry (such as Calgary and Houston) on both sides of the border. Canada Overview Already contending with a burgeoning development pipeline, Canadian office market fundamentals faced additional headwinds from weaker-than-expected economic indicators through the first half of 215. While performance was mixed among the 13 markets surveyed, depressed oil prices are taking a toll in Alberta particularly Calgary. Meanwhile, workplace strategies and urban intensification continue, and as purely office development sites become increasingly scarce, urban renewal and mixed-use development combining office, retail and residential are found across many of Canada s downtown markets. As economists debate the country s performance, the office marketplace will remain active in coming quarters. Commodity-based and development-laden markets will likely experience a flight to quality, making it difficult for landlords to maintain occupancy levels and generate notable rental rate growth, thus shifting the tenant-landlord balance that some markets have enjoyed. Notable First-Half 215 Canadian Office Market Highlights: Varying and sporadic absorption levels, coupled with new office completions, lifted Canada s overall vacancy rate 11 basis points (bps) from one year earlier to 1.3% at the midway point of 215. Quebec City (8.6%) and Lethbridge (16.5%) posted the lowest and highest vacancy rates, respectively; the greatest swing occurred in Calgary (11.5%, +32 bps). Weighed down by Calgary s woes, Canada s Western markets collectively saw vacancy spike 16 bps over the previous year to 1.3% at mid-year 215. Eastern markets witnessed a modest 3-bps bump to 1%. markets as a whole posted 8.8% vacancy at mid-year 215, up 16 bps year-over-year more than half of the markets remained in single-digit territory. Suburban markets recorded positive growth as vacancy retreated marginally (12.1%, -2 bps), led by strong absorption numbers in Toronto (13%, -12 bps). Canada delivered 8.5 million square feet (msf) annualized of new office space (42% in Toronto), with developers slightly favouring completions in the country s downtown markets. Despite a decline from 214, more than 2 msf is under construction across Canada (52% preleased and representing 3.9% of existing inventory). In the past year, the average asking gross rent for class A downtown office space in Canada fell to $43.47 per square foot (psf) (-$.52 psf), while rising modestly for suburban class A product ($41.34 psf, +$.83 psf). U.S. Overview Vacancy levels in the 4.4-bsf U.S. office market improved year-overyear with positive net absorption and rising class A rents. By mid-year 215, many U.S. cities had returned to a leasing atmosphere favorable to landlords, even while tenants continued their flight to quality and as square feet under development trended higher. Rising levels of positive absorption are notable in light of the widespread adoption of office design efficiencies and falling rates of space utilization. The labor market likewise improved. The Bureau of Labor Statistics reported the unemployment rate in June 215 was 5.3% compared with 6.1% in June 214. Notable First-Half 215 U.S. Office Market Highlights: Overall office vacancy fell to less than 13% at mid-year 215, dropping by 6 bps since mid-year though downtown markets remained much healthier and averaged just slightly less than 11% vacant. This differential highlights an urban-centric workforce and the desirability of 24-hour environments. San Francisco recorded 5.3% vacancy, the country s lowest overall rate, while the tightest downtown market was also found in Northern California with San Mateo reporting a vacancy rate of 1.1%. At mid-year 215, annual net absorption was 46 msf, an increase of more than 1% year-over-year, and both suburban and downtown markets recorded positive net absorption for the 12-month period. Dallas (6.5 msf), Boston (3.9 msf) and New York (3.6 msf) recorded the greatest amount of absorption between mid-year 214 and midyear 215. Pricing has been trending upward with class A asking rents in downtown markets averaging more than psf on a gross basis, and up by 5% year-over-year. New York, the country s largest office market with 435 msf, also reported the country s highest class A rent - $78.57 psf gross. San Francisco ($67 psf), Boston ($62.8 psf) and Washington, DC (6.9 psf) round out the list of larger markets with downtown asking rents north of 5 psf. During the 12-month period ending June 3, 215, a total of 33 msf of new office space was delivered in Avison Young s U.S. markets. Most of that was located in suburban markets where 25 msf, or.9% of inventory, was delivered. In contrast, just 8 msf, or.5%, of downtown inventory was completed. 71 msf remained under construction at mid-year 215, compared with 65 msf at this time last year. Houston (11 msf), Dallas (8 msf) and Washington, DC (8 msf) represent the three leading U.S. cities in terms of total office space under development. On the whole, preleasing activity in new development has been significant and averages 58%. Mid-Year 215 Canada, U.S. & U.K. Office Market Report 3

4 Canada & U.S. Office Market Highlights 25% Canada Metropolitan Area Office Canada Vacancy Metropolitan Rate Comparison Area Office Vacancy Rates 2% 15% 1% 5% % Canada 25% Mid-Year 214 Mid-Year U.S. Metropolitan Area Office U.S. Vacancy Metropolitan Rate Comparison Area Office Vacancy Rates 2% 15% 1% 5% % Atlanta Austin Boston Charleston Charlotte Chicago Cleveland Columbus Dallas Denver Detroit Fairfield County Fort Lauderdale Houston Indianapolis Las Vegas Long Island Los Angeles Miami Minneapolis New Jersey New York Oakland Orange County Orlando Philadelphia Pittsburgh Raleigh-Durham Reno Sacramento San Diego County San Francisco San Mateo Tampa Washington, DC West Palm Beach AY U.S. Markets Mid-Year 214 Mid-Year AY U.S. Markets 4 Mid-Year 215 Canada, U.S. & U.K. Office Market Report

5 Canada & U.S. Office Market Highlights 25% Canada & Suburban Canada Office Vacancy Rates & Suburban Office Vacancy Rates 2% 15% 1% 5% % Canada 25% Suburban Suburban U.S. & Suburban U.S. Office Vacancy Rates Suburban Office Vacancy Rates 2% 15% 1% 5% % Atlanta Austin Boston Charleston Charlotte Chicago Cleveland Columbus Dallas Denver Detroit Fairfield County Fort Lauderdale Houston Indianapolis Las Vegas Long Island Los Angeles Miami Minneapolis New Jersey New York Oakland Orange County Orlando Philadelphia Pittsburgh Raleigh-Durham Reno Sacramento San Diego County San Francisco San Mateo Tampa Washington, DC West Palm Beach AY AY U.S. Markets Suburban Suburban Mid-Year 215 Canada, U.S. & U.K. Office Market Report 5

6 Canada & U.S. Office Market Highlights Canada Class A Average Canada Asking Gross Rents Class A Average Asking Gross Rents Canada Canada Suburban Class A Average Asking Gross Rents Suburban Class A Average Asking Gross Rents $45 $45 $4 $4 $3 $3 $2 $2 $1 $1 $ Canada $ Canada Class A Average Asking Rent ($psf net) Class A Average Additional Rent ($psf) Suburban Class A Average Asking Rent ($psf net) Suburban Class A Average Additional Rent ($psf) Class A Average Asking Rent ($psf net) Class A Average Additional Rent ($psf) Suburban Class A Average Asking Rent ($psf net) Suburban Class A Average Additional Rent ($psf) * Rental rates are shown in CAN $ * Rental rates are shown in CAN $ $8 U.S. Class A Average Asking Gross Rents U.S. Class A Average Asking Gross Rents $8 U.S. Suburban Class A Average Asking Gross Rents U.S. Suburban Class A Average Asking Gross Rents $7 $7 $6 $6 $4 $4 $3 $3 $2 $2 $1 $1 $ Atlanta Austin Boston Charleston Charlotte Chicago Cleveland Columbus Dallas Denver Detroit Fairfield County Fort Lauderdale Houston Indianapolis Las Vegas Long Island Los Angeles Miami Minneapolis New Jersey New York Oakland Orange County Orlando Philadelphia Pittsburgh Raleigh-Durham Reno Sacramento San Diego County San Francisco San Mateo Tampa Washington, DC West Palm Beach AY U.S. Markets Class A Average Asking Rent ($psf net) Class A Average Asking Rent ($psf net) AY U.S. Markets Class A Average Additional Rent ($psf) Class A Average Additional Rent ($psf) $ Atlanta Austin Boston Charleston Charlotte Chicago Cleveland Columbus Dallas Denver Detroit Fairfield County Fort Lauderdale Houston Indianapolis Las Vegas Long Island Los Angeles Miami Minneapolis New Jersey New York Oakland Orange County Orlando Philadelphia Pittsburgh Raleigh-Durham Reno Sacramento San Diego County San Francisco San Mateo Tampa Washington, DC West Palm Beach AY U.S. Markets Suburban Class A Average Asking Rent ($psf net) Suburban Class A Average Asking Rent ($psf net) * Rental rates are shown in U.S. $ * Rental rates are shown in U.S. $ Suburban Class A Average Additional Rent ($psf) Suburban Class A Average Additional Rent ($psf) AY U.S. Markets 6 Mid-Year 215 Canada, U.S. & U.K. Office Market Report

7 Canada & U.S. Office Market Highlights 8 Canada Office Area Under Construction 6 Million sf 4 2 Office Office Area Area Under Under Construction (sf) Suburban Office Office Area Area Under Under Construction Construction (sf) (sf) 12 U.S. U.S. Office Area Under Construction 1 8 Million sf Atlanta Austin Boston Charleston Charlotte Chicago Cleveland Columbus Dallas Denver Detroit Fairfield County Fort Lauderdale Houston Indianapolis Las Vegas Long Island Los Angeles Miami Minneapolis New Jersey New York Oakland Orange County Orlando Pittsburgh Philadelphia Raleigh-Durham Reno Sacramento San Diego County San Francisco San Mateo Tampa Washington, DC Office Area Under Construction (sf) Office Area Under Construction (sf) Suburban Office Area Under Construction (sf) Suburban Office Area Under Construction (sf) Mid-Year 215 Canada, U.S. & U.K. Office Market Report 7

8 Canada, U.S. & U.K. Office Market Highlights Canada, U.S. && U.K. - Office - Area Under Construction Houston London, UK Dallas Washington, DC Calgary Boston Toronto San Francisco Chicago Austin Minneapolis Denver New York Los Angeles Montreal Vancouver Pittsburgh Edmonton Philadelphia Charlotte New Jersey Toronto West/Mississauga San Mateo Raleigh-Durham Fort Lauderdale Miami Orange County Detroit Cleveland San Diego County Tampa Halifax Atlanta Ottawa Indianapolis Charleston Orlando Regina Guelph (SW Ontario) Quebec City Columbus Oakland Las Vegas West Palm Beach Sacramento Reno Long Island Fairfield County Winnipeg Lethbridge Million sf Canada, U.S. U.S. & U.K. & U.K. - Office - Office Area Area Preleased Preleased Cleveland Detroit New Jersey Ottawa Tampa Minneapolis Pittsburgh Indianapolis Fort Lauderdale Chicago Philadelphia Edmonton San Francisco Dallas Boston Washington, DC Regina Charlotte Toronto Houston Halifax Columbus San Mateo London, UK Calgary Guelph (SW Ontario) Miami Montreal Denver Quebec City Los Angeles Orlando New York Orange County Austin Vancouver Toronto West/Mississauga Raleigh-Durham San Diego County Charleston Oakland Las Vegas Atlanta West Palm Beach Sacramento Reno Long Island Fairfield County Winnipeg Lethbridge % 2% 4% 6% 8% 1% 8 Mid-Year 215 Canada, U.S. & U.K. Office Market Report

9 Calgary Office Market Calgary s office market has changed significantly from one year ago. During the 12-month period that ended at mid-year 215, the vacancy rate rose to 11.5% from 8.3% due to a substantial increase in vacant sublease space on the market. As a result of a steep decline in oil prices since the fourth quarter of 214, large energy companies have employed several defensive strategies to reduce expenses. These actions include cancelling or deferring capital expenditures, laying off staff and placing unused space on the sublease market. Sublease space, as a percentage of vacancy, rose nine percentage points year-overyear to 4%. The second quarter of 215 marked the third consecutive quarter of overall negative absorption. Annualized from June 3, 214, overall absorption in Calgary was negative 1.8 msf with alone registering 1.5 msf of negative absorption. recorded negative absorption of 538, sf in the first half of 215 compared with positive absorption of 419, sf in the same period in 214. Many prospective tenants are staying on the sidelines as long as possible as rental rates move in their favour. The current environment is conducive to merger and acquisition activity, which has been picking up in the energy industry as several players face financial difficulties. In addition to an anticipated increase in available sublease space resulting from mergers, Calgary s office development market has approximately 6.2 msf of new projects currently under construction with deliveries through 218. This large amount of new product could prove problematic if the price of oil remains at current levels for an extended period of time. Five developments were delivered during the first half of 215 with significant vacancy and serve as an indication of the potential market impact if depressed oil pricing persists. Five additional developments are anticipated by year-end three of those projects are speculative suburban developments. Cadillac Fairview s Calgary City Centre is set to come to market in the fourth quarter. The project is expected to come to market with 19% vacancy. $ NOTABLE LEASE TRANSACTIONS BY SIZE Suburban - FIRST Asking Net HALF Rent Telus Tower TransCanada Corp. 155, Renewal 2 Ernst & Young Tower Black Diamond Ltd. 68, New 3 84 Seventh Hatch Ltd. 62, Renewal 4 Roslyn Building Ensign Energy Services 55, Renewal 5 Gulf Canada Square Baker Hughes 47, Renewal 2, 3, 4, 5, 3,5 4,5 5, 3, 4, 4,5 2,5 3,5 4, 2, 3, 3,5 1,5 2,5 3, 1, 2, 2,5 1,5 2, 1, 1,5 5 1, 5 $6 $6 $4 $3 $4 $4 $2 $3 $3 $1 $2 $2 $1 $ $1 $ Calgary Office Absorption & Vacancy Rates Calgary Office Absorption & Vacancy Rates Calgary Office Space Under Construction & Completions Calgary Class A Average Asking Gross Rents Q2 211 Q2 Q2 214 Q2 212 Q Q2 211 Q2 212 Q2 213 Suburban Q2 Additional 214 Rent Q % 14.% 1,5 2,5 1.% 3, 12.% 14.% 1, 2, 2,5 8.% 1,5 1.% 12.% 2, 6.% 1, 1,5 8.% 1.% -5 4.% 1, 6.% 8.% -1, 5 2.% -1,5-5 4.% 6.% -2, -1,.% -5 2.% 4.% -1,5-1, -2, Vacancy.% 2.% -1,5-2,.% Q2 211 Vacancy Q2 212 Q2 213 Suburban Q2 214 Vacancy Q2 215 Calgary Absorption Office Space (12 months) Under Construction Suburban & Absorption Completions (12 months) 5, Vacancy 3, 2,5 4,5 $6 Calgary Office Absorption & Vacancy Rates Calgary Office Space Under Construction & Completions Q2 211 Under Construction Q2 212 Q2 213 Suburban Q2 Under 214 Construction Q2 215 Calgary Class A Average Asking Gross Rents Calgary Class A Average Asking Gross Rents 14.% Mid-Year 215 Canada, U.S. & U.K. Office Market Report 9

10 Edmonton Office Market Construction is well underway at Ice District, which houses two of the three major downtown office developments. The 6,-sf Edmonton Tower is halfway through its construction schedule and 8% preleased. The new Stantec Tower, located at the corner of 13rd Avenue and 12nd Street adjacent to Rogers Place, has started to take shape, and the Kelly Ramsey Tower, situated on Rice Howard Way, is also making excellent progress. In comparison with the second quarter of 214, when most of these projects were at their initial stages, the downtown Edmonton skyline has grown significantly. While industry observers debate how high vacancy rates will rise in the next two years, Ice District is expected to have an extremely positive impact on the multi-residential and retail markets in the core. The office towers will also offer choice for tenants who have been starved for new modern and efficient premises. Though not to the same degree as Calgary, the Edmonton office market is feeling the effects of low oil prices, recording negative absorption of 54,298 sf in the second quarter of 215. There have been some high-profile transactions in 215, including Associated Engineering, which is set to occupy 44, sf in the newly refurbished 9Triple8 building; and MNP, which will occupy 72,125 sf at 11st Street Tower this fall. As the market prepares for the forthcoming consolidations of Enbridge and the City of Edmonton into their respective new premises in the first quarter of 217, the landlord community, for the most part, has been determined to maintain rental rates for existing buildings. Office vacancy increased year-over-year to 8.5% at mid-year 215 from 8.1% a year previous. Landlords such as Dream, Morguard and Oxford have increased inducement allowances to entice tenants in order to address the risk their properties face from an increase in vacancy forecasted for 217. A dramatic drop in oil prices during the past year has had a profound influence on many markets within Alberta. With economic uncertainty looming, 216 will represent a pivotal stage in the dynamics of Edmonton s office market. $ NOTABLE LEASE TRANSACTIONS BY SIZE Suburban - FIRST Asking Net HALF Rent Broadmoor Place VI & V Opus Stewart Weir 65,2 Renewal 2 Milner Building ATCO 54,6 Renewal 3 Centre Point Place Meloche Monnex 44,9 Renewal 4 9Triple8 Jasper Associated Engineering 44, New 5 Edmonton Tower RBC DS 35, New ,6 2, 1,4 1,8 2, 1,2 1,6 1,8 1, 1,4 1,6 1,2 8 1,4 1, 6 1, , $45 $4 $45 $3 $4 $3 $2 $3 $2 $1 $2 $1 $ $1 $ Edmonton Office Absorption & Vacancy Rates Edmonton Office Absorption & Vacancy Rates Edmonton Office Space Under Construction & Completions Edmonton Class A Average Asking Gross Rents Q2 211 Q2 Q2 214 Q2 212 Q Q2 211 Q2 212 Q2 213 Suburban Q2 Additional 214 Rent Q % 14.% 1.% 12.% 14.% 8.% 1.% 12.% 6.% 8.% 1.% 4.% 6.% 8.% 2.% 4.% 6.% -1.% 1 2.% 4.% -1 Vacancy.% 2.% -1.% Q2 211 Vacancy Q2 212 Q2 213 Suburban Q2 214 Vacancy Q2 215 Edmonton Absorption Office (12 Space months) Under Construction Suburban Absorption & Completions (12 months) 2, Vacancy 1,8 $45 $4 Edmonton Office Absorption & Vacancy Rates Edmonton Office Space Under Construction & Completions Q2 211 Under Construction Q2 212 Q2 213 Suburban Q2 Under 214 Construction Q2 215 Edmonton Class A Average Asking Gross Rents Edmonton Class A Average Asking Gross Rents 14.% 1 Mid-Year 215 Canada, U.S. & U.K. Office Market Report

11 Situated 45 minutes west of the Greater Toronto Area with access to three Canada-U.S. border crossings, the Southwestern Ontario market comprises Kitchener, Waterloo, Guelph and Cambridge. Office space remains concentrated in Kitchener and Waterloo, which together make up more than 7% of the market s 14.1 msf of office inventory. With continued economic uncertainty due to decreased demand in a market driven by the technology sector, vacancy has remained an issue over the past year. Demand for space appears to be increasing as the local economy stabilizes and business confidence improves. Some large tenants have relocated to more suburban areas as new class A buildings became available for occupancy. As a result, downtown areas continue to struggle, but landlords have become more aggressive to entice tenants to renew or relocate to the core markets. With vacancy rates remaining in the double digits at 11%, a number of landlords are offering significant incentives to tenants, including improvements, free rent and cash inducements. This trend has had an impact on tenants, as more companies are reviewing all of the alternatives and making the commitment to relocate. While several companies with small- to mid-size leases have relocated, only a limited number of 5,-sf-plus tenants have elected to do so in the past 12 months. External factors are also having a significant influence on the Southwestern Ontario office market. Waterloo Region s light rail transit (LRT) system, currently under construction, and increased rail and bus service to and from the GTA, are spurring construction of a number of office buildings on newly available commercial lands and along the planned LRT route. Many of these developments are on a speculative basis. These additional location options will likely affect the net effective rental rates that landlords offer in 215. This situation is expected to continue throughout the rest of the year as the market and economy stabilize. Overall, Southwestern Ontario remains a tenant s market with significant opportunities for short-term rental value. Guelph (Southwestern Ontario) Office Market $ NOTABLE LEASE TRANSACTIONS BY SIZE Suburban - FIRST Asking Net HALF Rent Northfield Drive W., Waterloo Regus 19,2 New 2 3 Hagey Boulevard, Waterloo Stantec 17,2 New 3 18 Northfield Drive W., Waterloo Sun Life Financial 15,1 New 4 72 Victoria Street S., Kitchener Zootly 6, Sublease 5 49 Weber Street W., Kitchener AECOM 5,2 New $2 $2 $2 $1 $1 $1 $ $ Southwestern Ontario Office Absorption & Vacancy Rates % 2 14.% 1 Southwestern Ontario Office Absorption & Vacancy Rates 1.% % 14.% 8.% % 12.% % -5 8.% 1.% 5 4.% -1 6.% 8.% % 4.% 6.% % % 4.% Vacancy.% 2.% -2.% Q2 211 Vacancy Q2 212 Q2 213 Suburban Q2 214 Vacancy Q2 215 Southwestern Absorption Ontario (12 Office months) Space Under Construction Suburban Absorption & Completions (12 months) 45 Vacancy 2 4 Southwestern Ontario Office Space Under Construction & Completions Southwestern Ontario Office Space Under Construction & Completions Southwestern Ontario Office Absorption & Vacancy Rates Q2 211 Under Construction Q2 212 Q2 213 Suburban Q2 Under 214 Construction Q2 215 Southwestern Ontario Class A Average Asking Gross Rents Southwestern Ontario Class A Average Asking Gross Rents Q2 211 Q2 Q2 214 Q2 212 Q Q2 211 Q2 212 Q2 213 Suburban Q2 Additional 214 Rent Q2 215 Southwestern Ontario Class A Average Asking Gross Rents 14.% Mid-Year 215 Canada, U.S. & U.K. Office Market Report 11

12 Halifax Office Market The arrival of cranes on Halifax s skyline has resulted in new space being added to a growing office market inventory, causing vacancy to creep slowly upwards. This trend is expected to continue through 215. Although tenants are being lured to suburban locations with flexible lease terms, attractive rates and environmentally friendly and innovative spaces, the downtown is increasingly attractive and where demand will be focused. As a result, the downtown market is expected to continue to outperform its suburban rivals. vacancy decreased 7 bps year-over-year to 11.8% at the end of the second quarter of 215. New developments such as the Nova Centre, which will bring 1 msf of mixed-use development including two office towers to the downtown market in September 216, are likely to attract the interest of corporate and government users. New construction along Barrington Street will help revive older class B and C buildings. ESpace, at 1656 Barrington Street, will add 15, sf of office/retail space to the downtown market. Overall vacancy is expected to increase slightly in the remainder of 215 as two new buildings under construction are delivered. No change in net or additional rental rates is expected in 215 despite the growing inventory. Some developers are looking outside the city centre toward the suburbs, where they are able to offer attractive incentives such as free parking, green space and highway access to avoid downtown traffic in conjunction with already lower assessments and taxes. For many landlords, highway access serves as a major tenant attraction. With vacancy at 7.1% as of mid-year 215, the suburban markets continue to be resilient despite the new construction downtown. Considerable attention is being paid to the Nova Centre, which will replace the former World Trade and Convention Centre. Nova Centre is slated for completion in December $3 $3 $2 $3 $2 $1 $2 $1 $ $1 $ Halifax Office Absorption & Vacancy Rates Halifax Office Absorption & Vacancy Rates Halifax Office Absorption & Vacancy Rates 14.% 12.% 14.% 1.% 12.% 14.% 8.% 1.% 12.% 6.% 8.% 1.% 4.% 6.% 8.% 2.% 4.% 6.%.% 2.% 4.% Vacancy.% 2.%.% Q2 211 Vacancy Q2 212 Q2 213 Suburban Q2 214 Vacancy Q2 215 Halifax Absorption Office Space (12 months) Under Construction Suburban & Absorption Completions (12 months) Vacancy Halifax Office Space Under Construction & Completions Halifax Office Space Under Construction & Completions Q2 211 Under Construction Q2 212 Q2 213 Suburban Q2 Under 214 Construction Q2 215 Halifax Class A Average Asking Gross Rents Halifax Class A Average Asking Gross Rents Halifax Class A Average Asking Gross Rents Q2 211 Q2 Q2 214 Q2 212 Q $ NOTABLE LEASE TRANSACTIONS BY SIZE Suburban - FIRST Asking Net HALF Rent 215 Q2 211 Q2 212 Q2 213 Suburban Q2 Additional 214 Rent Q TD Centre Halifax TD Bank 2, Renewal/Expansion 2 Bay West Centre TD Insurance 85, New 3 Eon Square Royal Bank of Canada 4, New 4 Purdy's Wharf KPMG 16,3 Renewal 5 RBC Waterside Centre Torys LLP 5,5 New 12 Mid-Year 215 Canada, U.S. & U.K. Office Market Report

13 Lethbridge Office Market Vacancy in the Lethbridge office market decreased to 16.5% at mid-year 215 from 18.5% one year earlier. The average downtown class A net asking rental rate increased to $16.25 psf in the second quarter of 215 from $16 psf in the second quarter of 214, while the average suburban class A net asking rental rate increased to $17.5 psf from $17 psf year-over-year. Both downtown and suburban landlords continue to offer incentives such as project management, free rent and tenant-improvement allowances to attract new tenants. Market trends in 215 include preleasing, new construction and repurposing of industrial and retail space for office use. The vacancy rates for both downtown and suburban class A office space remain low. class A office vacancy was at 11.7% in the second quarter of 215, down from 13% at the same point in 214. Suburban class A office vacancy was at 7%, also down from 214. With more than 3, sf of new construction anticipated to commence downtown in early 216, and an additional 2, sf slated for the suburbs, a significant increase to class A vacancy is expected in 216 and 217. With the recent announcement of a major tenant relocating to the United States, Lethbridge will see a significant impact on overall suburban vacancy in 216. With just under 219, sf of suburban inventory, the departure could potentially drive suburban vacancy to more than 4%. The suburban market recorded 15,8 sf of new inventory delivered in the 12-month period ending at mid-year 215, with the majority being preleased. Overall downtown vacancy rates decreased to 16.8% in the second quarter of 215 from 17.9% at the same point in 214. The downtown market registered nearly 5,5 sf of new construction in the first half of 215. Going forward, a rise in the downtown and suburban vacancy rates is expected due to more than 5, sf of new construction on the horizon, the relocation of a major tenant and retail spaces increasingly being repurposed as office space. $ NOTABLE LEASE TRANSACTIONS BY SIZE Suburban - FIRST Asking Net HALF Rent Avenue N. Farmer's Edge 11,1 New Avenue S. Dental Office 1, New Avenue S. BDO Canada LLP 8,9 New Avenue S. Teamworks 6,4 Renewal Avenue S. Intelligent Health Solutions 4,1 New $3 $3 $2 $3 $2 $1 $2 $1 $ $1 $ Lethbridge Office Vacancy Rates Lethbridge Office Vacancy Rates Vacancy Vacancy Lethbridge Office Space Under Construction & Completions Lethbridge Office Space Under Construction & Completions Lethbridge Class A Average Asking Gross Rents Q2 211 Q2 Q2 214 Q2 212 Q Q2 211 Q2 212 Q2 213 Suburban Q2 Additional 214 Rent Q % 25.% 25.% 15.% 2.% 2.% 1.% 15.% 15.% 5.% 1.% 1.%.% 5.% 5.%.% Q2 211 Under Construction Q2 212 Q2 213 Suburban Q2 Under 214 Construction Q2 215 Lethbridge Class A Average Asking Gross Rents Lethbridge Office Vacancy Rates Vacancy Lethbridge Office Space Under Construction & Completions 25.%.% Lethbridge Class A Average Asking Gross Rents Mid-Year 215 Canada, U.S. & U.K. Office Market Report 13

14 Montreal Office Market Vacancy rates in the Greater Montreal Area (GMA) reached new heights at the end of the second quarter of 215. vacancy rates rose to 9.4% from 8.6% a year earlier. Furthermore, the suburban vacancy rate followed the same trend, rising to 15.6% compared with 14.6% at the end of the second quarter of 214. Projects delivered in the downtown area during the last year amounted to nearly 129,5 sf, which is relatively small compared with the amount of space under construction. At the end of the second quarter of 215, there were five buildings under construction in downtown Montreal, totalling almost 1.4 msf. The Deloitte Tower and La Maison Manuvie are two prominent projects under construction that will add nearly 1 msf in the downtown area. On the other hand, nearly 9, sf of office space has been delivered in the suburbs since the second quarter of 214. Developers are also active in the suburbs with nine projects under construction that will add nearly 1.3 msf. As a result of the significant amount of new space delivered, the GMA office market experienced negative absorption of nearly 1.1 msf over the past 12 months with approximately 85, sf of negative absorption downtown and 25, sf of negative absorption in the suburban districts. Despite all of the ongoing construction downtown, class A rental rates have not been affected. At the end of the second quarter of 215, gross asking rental rates remained stable compared with one year earlier with the average sitting at just under $41 psf. However, in the suburban markets, average gross asking rental rates for class A space have reached a five-year low, decreasing to $27.1 psf from $28.29 psf a year earlier. As of mid-year 215, there were 41 new projects announced in the GMA with almost 9.5 msf preleased. Half of the preleased space is located in the downtown area. The new construction figures and announced development projects illustrate the real estate transformation that the GMA is going through, especially downtown. Delivery of yet-to-beleased new supply should keep vacancy rates high moving forward and may negatively affect rental rates, as there will likely be more supply than demand. $ NOTABLE LEASE TRANSACTIONS BY SIZE Suburban - FIRST Asking Net HALF Rent de Maisonneuve Boulevard W. Manulife 272,8 New 2 8 de Maisonneuve Boulevard E. Hydro-Quebec 66,4 Renewal de Maisonneuve Boulevard W. Hybris Canada 48,3 New 4 63 avenue Du Parc Moment Factory 46, New 5 4 Place Laval SQI 45, Expansion 1, 1,5 1,5 1, 5 1,4 1,8 1,6 1,8 1,2 1,4 1,6 1, 1,2 1,4 8 1, 1, , $45 $4 $45 $3 $4 $3 $2 $3 $2 $1 $2 $1 $ $1 $ Montreal Office Absorption & Vacancy Rates Montreal Office Absorption & Vacancy Rates Montreal Office Space Under Construction & Completions Montreal Class A Average Asking Gross Rents Q2 211 Q2 Q2 214 Q2 212 Q Q2 211 Q2 212 Q2 213 Suburban Q2 Additional 214 Rent Q % 18.% 12.% 16.% 18.% 1.% 14.% 16.% 1, 8.% 12.% 14.% 5 6.% 1.% 12.% 5 8.% -5 4.% 1.% 2.% 6.% 8.% -1, -5.% 4.% 6.% 2.% -5 4.% -1, Vacancy.% 2.% -1,.% Q2 211 Vacancy Q2 212 Q2 213 Suburban Q2 214 Vacancy Q2 215 Montreal Absorption Office (12 Space months) Under Construction Suburban Absorption & Completions (12 months) 1,8 Vacancy 1,5 1,6 $45 $4 Montreal Office Absorption & Vacancy Rates Montreal Office Space Under Construction & Completions Q2 211 Under Construction Q2 212 Q2 213 Suburban Q2 Under 214 Construction Q2 215 Montreal Class A Average Asking Gross Rents Montreal Class A Average Asking Gross Rents 18.% 16.% 14 Mid-Year 215 Canada, U.S. & U.K. Office Market Report

15 Ottawa Office Market The Ottawa office market has had a rougher ride than what is considered normal in the nation s capital. vacancy increased to 8.8% at mid-year 215 from 8.5% a year earlier and 4.8% at mid-year 213. It is hoped that the slowing increase in vacancy is an indication that the worst is now past. The office market recorded significant negative absorption in 214, but first-half 215 results have reversed that trend as positive absorption was recorded. Average asking net rental rates in the downtown core decreased marginally year-over-year to $24.68 psf with several class A landlords providing generous inducement packages to protect face rental rates. This reaction has certainly provided tenants with additional options. The suburban Kanata market has turned the corner. Vacancy was 9.6% at mid-year 215, a decline from 11.9% a year earlier, despite the addition of 23, sf to inventory. Asking rental rates have increased as large-pocket vacancies were absorbed by another wave of technology companies that have discovered the rich vein of talent living in the Ottawa area. As the country gears up for another federal election, the Ottawa office market is likely to adopt a wait-and-see attitude when it comes to any major expansion plans at least by those companies that derive the majority of their income from providing goods and services to government. Locally based businesses continue to feel the pinch in this era of austerity, but showed an ability to cope as employment increased marginally in the second quarter of 215 compared with the same period in 214. However, there was a slight increase in the unemployment rate in the second quarter of 215 as more individuals actively joined the workforce looking for employment opportunities. Work continues unabated on the first phase of Ottawa s $2.1-billion LRT system. While traffic patterns have been disrupted for many residents, the result will mean greater access to Ottawa s downtown core as well as employment nodes outside downtown. The impact of this project cannot be understated as hotel and retail developments in the core (and in proximity to future transit nodes) continue to appear on the Ottawa skyline ,2 1, 1,2 1,2 8 1, 1, $6 $6 $6 $4 $3 $4 $4 $2 $3 $3 $1 $2 $2 $1 $ $1 $ Ottawa Office Absorption & Vacancy Rates Ottawa Office Absorption & Vacancy Rates Ottawa Office Absorption & Vacancy Rates Absorption (YoY) Suburban Absorption (YoY) Vacancy Absorption (YoY) Suburban Absorption (YoY) Q2 211 Vacancy Q2 212 Q2 213 Suburban Q2 214 Vacancy Q2 215 Absorption (YoY) Suburban Absorption (YoY) Vacancy Ottawa Office Space Under Construction & Completions Ottawa Office Space Under Construction & Completions Ottawa Office Space Under Construction & Completions Ottawa Class A Average Asking Gross Rents Ottawa Class A Average Asking Gross Rents 12.% 1.% 12.% 8.% 12.% 1.% 6.% 1.% 8.% 4.% 8.% 6.% 2.% 6.% 4.%.% 4.% 2.% 2.%.%.% Completions (YoY) Suburban Completions (YoY) Completions (YoY) Suburban Completions (YoY) Q2 211 Under Q2 Construction 212 Q2 213 Suburban Q2 214 Under Construction Q2 215 Completions (YoY) Suburban Completions (YoY) Ottawa Class A Average Asking Gross Rents Q2 211 Q2 Q2 214 Q2 212 Q $ NOTABLE LEASE TRANSACTIONS BY SIZE Suburban - FIRST Asking Net HALF Rent 215 Q2 211 Q2 212 Q2 213 Suburban Q2 Additional 214 Rent Q March Road Sanmina - SCI 115, New 2 45 March Road Solar Winds 49, Renewal 3 39 March Road Qlik 45, New 4 5 Palladium Drive DNA Genotek 36, New 5 15 Elgin Street Shopify 33, New Mid-Year 215 Canada, U.S. & U.K. Office Market Report 15

16 Quebec City Office Market Quebec City s downtown vacancy rate has decreased for a third consecutive year, concluding the second quarter of 215 at 6.5% compared with 6.9% at mid-year 214. However, suburban vacancy did not follow the same trend and increased 19 bps year-over-year. Several new projects were announced in Quebec City during the past 12 months. The most notable was Phare de Québec, which could completely alter the city s image. The tower would include 65 floors and be the tallest skyscraper in Canada east of Toronto. The mixed-use project would offer approximately 2 msf and require a $6-million investment; however, there has been considerable criticism of the size and complexity of the project. At the end of the second quarter of 215, six suburban projects totalling 95, sf were in the preleasing phase. The SSQ building, located on Laurier Boulevard in the Ste-Foy district, accounts for 5, sf of the preleasing activity. There is also a large amount of space available for preleasing in the Lebourgneuf District with four projects that total 365, sf. For the third consecutive year, there was no inventory under construction in the downtown area. For the suburban markets, the tendency is the same. Only 133,8 sf of inventory was under construction at mid-year 215 compared with the five-year average of almost 5, sf. Asking rental rates have remained stable since the second quarter of 214. Gross rates remained steady in downtown and suburban class A buildings, averaging $27.95 psf and $26.87 psf, respectively. Quebec City registered negative absorption of 99, sf in the 12-month period ending at mid-year 215. This situation was in contrast to the 724, sf of positive absorption recorded in the previous 12-month period. Both leasing and development are anticipated to rise in the next few years with nearly 6 mixed-use projects announced and $1.5 billion invested. Quebec City s office market could see an increase in vacancy as a result of new construction. $ NOTABLE LEASE TRANSACTIONS BY SIZE Suburban - FIRST Asking Net HALF Rent de la Concorde Street Desjardins 2, Renewal 2 57 Des Galeries Boulevard Pratte Morrissette 1,8 New Lebourgneuf Boulevard CGSI@Solutions TI 5,1 Renewal Rte de L'Eglise Medicago 3,3 Expansion 5 7 Charest Boulevard East Sigmund 2,2 New , 1,2 1,2 8 1, 1, $3 $3 $2 $2 $2 $1 $1 $1 $ $ Quebec City Office Absorption & Vacancy Rates Quebec City Office Absorption & Vacancy Rates Quebec City Office Space Under Construction & Completions Quebec City Class A Average Asking Gross Rents Q2 211 Q2 Q2 214 Q2 212 Q Q2 211 Q2 212 Q2 213 Suburban Q2 Additional 214 Rent Q % 1.% % 9.% 1.% % 8.% 9.% 5.% 7.% % 4.% 6.% 3 7.% % 5.% 2 6.% 3 2.% 4.% 5.% % 3.% 4.% -2 1.% 2.% 3.% -1 1.% 2.% -2 Vacancy -1.% 1.% -2.% Q2 211 Vacancy Q2 212 Q2 213 Suburban Q2 214 Vacancy Q2 215 Quebec City Absorption Office (12 Space months) Under Construction Suburban Absorption & Completions (12 months) 1,2 Vacancy $3 Quebec City Office Absorption & Vacancy Rates Quebec City Office Space Under Construction & Completions Q2 211 Under Construction Q2 212 Q2 213 Suburban Q2 Under 214 Construction Q2 215 Quebec City Class A Average Asking Gross Rents Quebec City Class A Average Asking Gross Rents 1.% 9.% 16 Mid-Year 215 Canada, U.S. & U.K. Office Market Report

17 Regina Office Market Regina s office market has been shifting since 213. This trend was sustained into 215 and has resulted in a rebalancing of the market, which has subsequently impacted owners and occupiers of office space. After years of being a landlord s market, that trend has come to an end as the market is now considered balanced and is very competitive. The provincial economy has remained stable despite lower oil prices - a trend that should have a positive impact on the city s office market. A rising population should be viewed as positive, and supportive of businesses that want to relocate their head offices to Regina. and suburban nodes continued to grow in the first half of 215. The City of Regina conducted its annual review of its office development policy in June 215. No major changes were adopted by council, and it maintained its position that the downtown/central city office area should contain at least 8% of the city s medium and major office development, and that no new office buildings within the downtown/central city office area shall be approved where the downtown vacancy rate is equal to, or less than, 6.5% of total known available downtown office floor area. The policy will continue to be reviewed annually due to its perceived restrictive impact on current and future office development. Meanwhile, Harbour Landing Business Park in Regina s south end has three office buildings completed and a fourth ready to begin construction. Regina s newest 1-storey office tower, Agriculture Place in the downtown core, is under construction and will add 16, sf of office/retail space and underground parking to the market when completed. Despite a slight increase in downtown inventory, the vacancy rate at mid-year 215 remained unchanged at 1.6% from the same time in 214. Absorption in the suburbs recorded an uptick due to ongoing demand. Average asking rental rates for downtown and suburban space in all asset classes were virtually unchanged year-over-year at the end of the second quarter of 215. Class A net rates were at psf, class B-plus at $19.5 psf and class B at $16.5 psf. Net effective rates versus face rates have changed, as landlords are offering inducements where none were needed or offered previously. $ NOTABLE LEASE TRANSACTIONS BY SIZE Suburban - FIRST Asking Net HALF Rent Hill Tower 1 Ministry Of Central Services 77, Renewal 2 Saskatchewan Place Ministry Of Central Services 31,7 Renewal 3 Hill Tower 1 MLT 31, Renewal/Expansion Albert Street Conexus Credit Union 13,5 Sublease 5 Saskatchewan Place Ministry Of Central Services 7,4 Renewal $45 $4 $45 $3 $4 $3 $2 $3 $2 $1 $2 $1 $ $1 $ Regina Office Absorption & Vacancy Rates Regina Office Absorption & Vacancy Rates Regina Office Space Under Construction & Completions Regina Class A Average Asking Gross Rents Q2 211 Q2 Q2 214 Q2 212 Q Q2 211 Q2 212 Q2 213 Suburban Q2 Additional 214 Rent Q % 18.% 12.% 16.% 18.% 1.% 14.% 16.% 1 8.% 12.% 14.% 5 6.% 1.% 12.% 5 8.% -5 4.% 1.% 2.% 6.% 8.% -1-5.% 4.% 6.% 2.% -5 4.% -1 Vacancy.% 2.% -1.% Q2 211 Vacancy Q2 212 Q2 213 Suburban Q2 214 Vacancy Q2 215 Regina Absorption Office Space (12 months) Under Construction Suburban & Absorption Completions (12 months) 45 Vacancy 4 $45 $4 Regina Office Absorption & Vacancy Rates Regina Office Space Under Construction & Completions Q2 211 Under Construction Q2 212 Q2 213 Suburban Q2 Under 214 Construction Q2 215 Regina Class A Average Asking Gross Rents Regina Class A Average Asking Gross Rents 18.% 16.% Mid-Year 215 Canada, U.S. & U.K. Office Market Report 17

18 Toronto Office Market Against a backdrop of disappointing Canadian economic data, the Greater Toronto Area (GTA) office market reached the midway point of 215 with positive results as the suburbs outperformed the downtown and midtown markets. Positive absorption during the second quarter was attributed to steady deal flow, with more than 4 msf transacted in the first half and tenants gradually taking occupancy in new developments. A steady influx of new supply pushed overall vacancy to 9.9%, up 7 bps year-over-year. Development remains active, with more than 3.5 msf of office space completed in the past year, evenly distributed between the downtown and suburban markets. Almost half of those deliveries came online in the first half of 215, mostly in suburban Toronto West. Another 5.7 msf (57% preleased) is under construction with two-thirds in Toronto owing to urban intensification. Attracted by a growing millennial workforce and on the heels of Amazon and Apple s entry, U.S.-based tenants continue to show considerable interest in expanding or establishing a foothold, particularly downtown. The downtown market remains resilient, despite large blocks of space being returned as tenants relocate to recently completed towers. Widespread positive absorption resulted from strong occupancy gains in South as Marsh Canada and RBC took occupancy in downtown s newest high-performance buildings Bremner Tower and RBC WaterPark Place, respectively. There is also a growing trend toward brick-and-beam redevelopment and mixeduse developments incorporating retail, office and residential, such as Allied Properties and RioCan REIT s King Portland Centre in trendy West and Concert Properties 2 Wellington Street East in Toronto s Financial Core. vacancy finished higher at 6.8%. Suburban vacancy improved to 13% year-over-year, despite 1.7 msf of new deliveries and another 2 msf underway. Target Canada s quick exit and the successful lease-up of its former headquarters (185, sf) in the Airport Corporate Centre, by PointClickCare, attest to the market s ability to absorb large blocks of space. Tenants reaffirming their commitment to the suburbs included Aviva, KPMG, Huawei, Acklands-Grainger, McKesson, Maple Leaf Foods and TD Bank. In the wake of new development, tenant retention will be paramount among landlords, while tenants enjoy multiple price options. $ NOTABLE LEASE TRANSACTIONS BY SIZE Suburban - FIRST Asking Net HALF Rent Front Street W. TD Bank 231, New 2 AeroCentre V PointClickCare 185, New 3 16 & 19 Allstate Parkway Huawei Technologies 126, Renewal/Expansion King Street E. Yellow Pages 11,4 New Financial Drive Maple Leaf Foods 15, Renewal 1,5 2, 2, 1, 1,5 1,5 1, 5 5, 6, 6, 4, 5, 5, 3, 4, 4, 2, 3, 3, 1, 2, 2, 1, 1, $4 $45 $3 $4 $45 $4 $2 $3 $3 $1 $2 $2 $1 $ $1 $ Toronto Office Absorption & Vacancy Rates Toronto Office Absorption & Vacancy Rates Toronto Office Space Under Construction & Completions Toronto Class A Average Asking Gross Rents Q2 211 Q2 Q2 214 Q2 212 Q Q2 211 Q2 212 Q2 213 Suburban Q2 Additional 214 Rent Q % 12.% 14.% 16.% 1.% 12.% 14.% 8.% 1.% 12.% 6.% 1, 8.% 1.% 4.% 5 6.% 8.% 2.% % 6.%.% 2.% 4.% -5 Vacancy.% 2.% -5.% Q2 211 Vacancy Q2 212 Q2 213 Suburban Q2 214 Vacancy Q2 215 Toronto Absorption Office Space (12 months) Under Construction Suburban & Absorption Completions (12 months) 6, Vacancy 2, $45 Toronto Office Absorption & Vacancy Rates Toronto Office Space Under Construction & Completions Q2 211 Under Construction Q2 212 Q2 213 Suburban Q2 Under 214 Construction Q2 215 Toronto Class A Average Asking Gross Rents Toronto Class A Average Asking Gross Rents 16.% 14.% 18 Mid-Year 215 Canada, U.S. & U.K. Office Market Report

19 The first half of 215 was eventful in the Toronto West office market. Kicking off the year, Target Canada vacated 185, sf of class A space at 555 Explorer Drive in the Airport Corporate Centre (ACC), leaving many in the area to ponder how this gaping vacancy would affect a historically coveted and attractive market. The answer came just a few short months later as PointClickCare leased the balance of Target s former space. Volatility in leasing activity characterizes the last two years at the ACC and its surrounding nodes. Examples of significant gains and losses during that time period include: Bayer s lease of 125, sf at 292 Matheson Boulevard; Blackberry vacating 12, sf at 471 and 4715 Tahoe Boulevard; Sobeys taking occupancy of its new campus at 498 Tahoe Boulevard, totalling 22, sf; Target s departure and now PointClickCare s take-up. As is to be expected in a turbulent leasing climate, vacancy rates have continued to edge up, reaching 15% at mid-year 215. However, absorption is at its highest level in five years, suggesting that a fair portion of that vacant space may in fact be spoken for in the form of completed deals whose terms have yet to commence, such as PointClickCare. Bear this point in mind when taking an extended view at what is to come in the second half of 215 for Toronto West. Noteworthy is the recent trend towards flex space in Oakville: all five of the 215 deliveries in this market have been single-storey buildings with an average floorplate of about 44, sf. Heading into the remainder of 215, these new flex developments will compete against the traditional multi-storey buildings also under development in the area. With a number of large-block deals nearing completion, it is likely that recent momentum generated in key nodes will spur further leasing velocity in Toronto West through 215. Toronto West / Mississauga Office Market ,6 1,4 1,6 1,2 1,6 1,4 1, 1,4 1,2 8 1,2 1, 6 1, $3 $3 $2 $3 $2 $1 $2 $1 $ $1 Toronto West Office Absorption & Vacancy Rates Toronto West Office Absorption & Vacancy Rates Toronto West Office Absorption & Vacancy Rates Toronto West Office Space Under Construction & Completions Toronto West Office Space Under Construction & Completions Toronto West Office Space Under Construction & Completions Toronto West Class A Average Asking Gross Rents 16.% 12.% 14.% 16.% 1.% 12.% 14.% 8.% 1.% 12.% 6.% 8.% 1.% 4.% 6.% 8.% 2.% 4.% 6.%.% 2.% 4.%.% 2.% Toronto Suburban West Completions Class (12 A months) Average Asking Suburban Gross Under Rents Construction Toronto West Class A Average Asking Gross Rents 16.% 14.%.% $ $ NOTABLE LEASE TRANSACTIONS BY SIZE - FIRST HALF 215 Size Suburban (sf) 1 AeroCentre V PointClickCare 185, New Financial Drive Maple Leaf Foods 15, Renewal Viscount Road McKesson 76, New 4 55 Standish Court AGF 55, New 5 Spectrum Square I Investment Planning Counsel 54, New Mid-Year 215 Canada, U.S. & U.K. Office Market Report 19