Dublin Offices. CB RICHARD ELLIS MARKET VIEW MARKET OVERVIEW. 4th QUARTER vs LAST QUARTER. Letting activity in the Dublin office

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1 CB RICHARD ELLIS MARKET VIEW Dublin Offices FOURTH QUARTER 28 MARKET OVERVIEW Letting activity in the Dublin office market weakened considerably in Q4 28, reflecting the changed economic climate Take-up weaker in Q4 28 as economic conditions deteriorate. Just under 33,m 2 of office lettings were transacted in Q4 28, approximately onethird less than the five-year Q4 average take-up figure for the capital. This brings the 28 take-up total for the Dublin office market to 168,786m 2, a significant drop from the record take-up recorded in 27. Prime headline rents continue to come under pressure The completion of new office developments in 28, combined with increasing competition to attract tenants, continued to exert downward pressure on rental levels. Overall Dublin office vacancy rate has increased to 15.8% Companies downsizing, slowing transactional activity and the releasing of second-hand space back onto the market in H2 28 all contributed to an increase in the vacancy rate in Q4. Prime office yields increasing rapidly as market activity decelerates Declining investor demand and the continued lack of liquidity in the banking and property sectors accelerated the rise in prime office yields in Q4 28. Prime office yields moved out to 7.5% during the quarter. Demand for suburban office space on the rise in Q4 28 While overall demand was down in Q4 28, demand for office accommodation in the capital shifted towards the more cost-competitive options. Overall, Dublin 2/4 and the South Suburbs remain the most desirable location for office occupiers. 4th QUARTER vs LAST QUARTER ANNUAL DUBLIN OFFICE TAKE-UP , Take-up Availability Rental values Investment Spend Yields Take-up (Sq m) 25, 2, 15, 1, Average 5, CB Richard Ellis Limited

2 CB RICHARD ELLIS MARKET VIEW DUBLIN OFFICES Q4 28 OVERALL MARKET COMMENTARY Office take-up down 35% in 28 Just under 33,m 2 of letting activity concluded in Q4 Vacancy rate now stands at 15.8% in Dublin While the Dublin office market proved to be remarkably resilient for most of 28, the deterioration of the domestic economy had a marked effect on office take-up in Q4 28. In total, 168,786m 2 of office accommodation was let in the capital during 28, a significant decline on the previous year s record high take-up, but similar to annual take-up levels achieved earlier in the decade. Take-up (Sq m) DUBLIN OFFICE TAKE-UP Vs VACANCY RATE , 25, 2, 15, 1, 5, In 28, nearly 35% of office lettings signed in the capital were completed in the third quarter of the year, while the first quarter accounted for just over 26% of office lettings. Quite possibly reflecting the changed economic situation, for the second year in a row the fourth quarter failed to produce the majority of letting activity that was customary in years of healthier letting activity in the Dublin office market. In 28, only 2% of Dublin office take-up occurred in Q4, with less than 33,m 2 signed in the three month period. Dublin 2/4 continues to be the focus for the majority of letting activity in Dublin, accounting for 67,596m 2 or 4% of overall Dublin take-up in 28. Despite the gap between city centre and suburban take-up figures narrowing as 28 progressed, Dublin city centre still accounted for the majority (63%) of all office lettings signed in Dublin in 28. Due primarily to a single, large letting that occurred in Q3, the West Suburbs accounted for the largest proportion (43%) of total suburban take-up in 28. This anomaly aside, however, the South Suburbs accounted for approximately half of all suburban take-up in 28. North Suburbs 15% South Suburbs 15% Dublin 6/8 9% West Suburbs 6% Dublin 1/3/7 5% Dublin 2/4 5% In 28, approximately 66% of all office lettings signed were in schemes that were either under construction or newly completed. Of this new accommodation, over 74,m 2 of supply was newly completed in 28 and over 36,m 2 of that was under construction. Just over 57,m 2 of second-hand or previously occupied office accommodation was let in 28. In Q4 28, around 82% of office lettings signed were in newly completed or pre-let office buildings; 45% of this was accounted for by pre-lettings while the remainder occurred in newly completed office buildings. 9, 8, 7, 6, 5, 4, 3, 2, 1, Q4 26 Q1 27 Q2 27 Q3 27 Q4 27 Q1 28 Q2 28 Q3 28 Q % 18% 16% 14% 12% 1% 8% 6% 4% 2% % Vacancy % Take-Up Vacancy DUBLIN OFFICE TAKE-UP BY DISTRICT Q4 28 Sq M DUBLIN OFFICE TAKE-UP Q Q4 28 Secondhand New Completed Under Construction/ Pre Let 28 CB Richard Ellis Limited

3 CB RICHARD ELLIS MARKET VIEW DUBLIN OFFICES Q4 28 DUBLIN OFFICE DEMAND BY DISTRICT Q4 28 West Suburbs 3% South Suburbs 29% North Suburbs 16% All Suburban 3% City Centre 49% One of the most notable trends at the end of 28 was the sharp contraction in the amount of demand in the Dublin office market. At the end of the previous quarter, there were outstanding requirements for more than 265,m 2 of office space in Dublin; at year-end 28 that figure stands at just below 94,m 2, a decline in demand of nearly 65% as the economic crisis has accelerated. It is obvious that the decline in the level of demand has occurred primarily in the city centre district, as the suburban sub-markets now account for 51% of remaining outstanding requirements for office accommodation in the capital. Of the total demand of approximately 94,m 2 in Q4 28, 19% stated a preference for locating in the Dublin 2/4 district while 29% stated a preference for locating in the south suburbs, a notable change from recent trends. DUBLIN OFFICE TAKE-UP BY OCCUPIER TYPE Q4 28 Business/Services 32% GROWTH OF DUBLIN OFFICE MARKET (f) Financial 5% Public Sector 8% Manufacturing, Consumer Services & Leisure 1% Computers / Hi Tech 13% Professional 41% In 28, as in the previous year, business services tenants accounted for the largest single proportion (35%) of office takeup at 35%. The combination of professional services tenants (18%) and public sector/regulatory tenants (17%) accounted for another 35% of take-up in 28. One of the biggest lettings signed in 28 was to BCM Hanby Wallace, of nearly 14,m 2 at 2 Grand Canal Square, Dublin 2. Considering the economic and financial backdrop it is not surprising that financial tenants only accounted for 11% of office take-up in Dublin during 28, although there was a significant letting of over 3,m 2 on St. Stephen s Green to HedgeServ. Of the office accommodation let in the Dublin office market in the last three months of 28 specifically, 38% was to professional services tenants due primarily to the letting of 11,241m 2 to William Fry solicitors at 4 Grand Canal Square in Dublin 2. Business Service tenants accounted for a further 3% of office take-up in the capital in Q4 while financial services tenants and computers/high-tech tenants accounted for 11% and 12%, respectively. Our analysis indicates a significant increase in the overall vacancy rate in the Dublin office market to 15.8% in Q4 28. Vacancy remains lowest in the Dublin 2/4 sub-market at 1%. ' sqm Completed Under Construction Planning 28 CB Richard Ellis Limited

4 CB RICHARD ELLIS MARKET VIEW DUBLIN OFFICES Q4 28 CITY CENTRE MARKET 63% of office accommodation let in Dublin in 28 was located in the city centre Vacancy rate increased to 1.4% in Q4 Prime quoting rents under continued pressure and now at 623 per sq m Approximately 69% of the 15,m 2 let in the city centre in 28 occurred in the Dublin 2/4 and IFSC submarkets, while a further 24% of office lettings occurred in the Dublin 1/3/7 district. Only 7% of office accommodation let in 28 was in Dublin 6/8. Take-Up Sq M DUBLIN CITY CENTRE TAKE-UP VS VACANCY RATE Q Q4 28 7, 6, 5, 4, 3, 2, 1, Vacancy Rate % In the last quarter of 28 specifically, the city centre accounted for over 63% of overall take-up. Dublin 2/4 accounted for the majority (79%) of the 2,94m 2 of office lettings signed in the city centre. Dublin 6/8 accounted for a further 13% and Dublin 1/3/7 another 8%. There was no office letting signed in the IFSC district in the last three months of 28. No single size category emerged in 28 as the dominant size preference by office occupants. While 25% of office take-up in the Irish capital occurred in large lettings of 9,29m 2 or more, this take-up could be attributed to only two lettings which occurred in the second half of the year. Approximately 7% of city centre take-up in 28 was evenly spread amongst lettings of 4,645m 2 or smaller, while only 5% of office lettings in 28 were between 4,645m 2 and 9,29m 2. - Q4 26 Q1 27 Q2 27 DUBLIN CITY CENTRE TAKE-UP BY SIZE Q4 28 > 4,645 Sq M 35% Q3 27 Take-up Q4 27 Q1 28 Vacancy Rate Q2 28 <465 Sq M 22% Q3 28 Q4 28 While there has been a general shift towards smaller-sized lettings in the Dublin office market, a large letting of over 9,29m 2 did occur in the Dublin 2/4 district during the fourth quarter of 28. This letting accounted for the majority of take-up in Q4, but lettings between 465m 2 and 929m 2 accounted for a further 32% of take-up in that period, primarily in the Dublin 2/4 and Dublin 6/8 districts of the city centre market. A number of lettings smaller than 465m 2 accounted for an additional 1% of city centre take-up in Q4. In the wake of so much turmoil within the financial sector, it is not surprising that during 28 there was a shift in the profile of tenants signing leases. Business service tenants accounted for one-third of office lettings in the city centre in 28, while professional services accounted for one-quarter of all city centre take-up. 1,859-4,644 Sq M 6% 93-1,858 Sq M 15% DUBLIN CITY CENTRE TAKE-UP BY OCCUPIER TYPE Q4 28 Financial 8% Public Sector 11% Manufacturing, Consumer Services & Leisure 1% Professional 57% Sq M 22% Business/Services 23% 28 CB Richard Ellis Limited

5 CB RICHARD ELLIS MARKET VIEW DUBLIN OFFICES Q4 28 DUBLIN CITY CENTRE NEW SUPPLY , 1, 8, The public sector was also notably active in 28, signing for office accommodation totalling over 23,m 2 in the city centre. Financial services, previously the dominant occupier in the city centre, only accounted for 14% of office lettings in the city centre in 28. Sq M 6, 4, 2, Dublin 1/3/7 Dublin 2/4 Dublin 6/ Our research indicates that of the 336,426m 2 of office space available in the city centre, only 11,881m 2 of that was under negotiation or reserved as of the end of Q4 28. The completion of a number of new schemes in 28, combined with the releasing of second-hand stock back onto the market significantly increased the city centre vacancy rate at the end of 28 to 13%, although in Dublin 2/4 our research indicates the vacancy rate is 1%, the lowest in Dublin overall. per Sq M PRIME CITY CENTRE RENTS Q Q Q4 26 Q1 27 Q2 27 Q3 27 Q4 27 Q1 28 Q2 28 Q3 28 Q4 28 KEY CITY CENTRE LETTING TRANSACTIONS Q4 28 Occupier Sq M Address William Fry 11,241 4 Grand Canal Square Irish Distillers 925 Simmonscourt, RDS Prime quoting rents in the city centre continued to decline at the end of 28 due to increased competition amongst landlords for tenants and pressure from the banks to lock in cash-flow in the current environment. As of Q4 28, prime quoting rents stood at approximately 623 per square metre. Prime office yields in the city centre have also come under increased pressure at the end of 28. With transactional activity continuing to be thin on the ground, our research indicates that prime Dublin city centre office yields reached 7.5% in Q4 28 and will continue to come under pressure as the stand-off between purchasers and vendors continues. Total returns in the office sector were deeply negative in 28 (-31.1%), reflecting both a significant decline in values and rental levels. Of the 113,m 2 of office development completed in 28, only 36,m 2 was located in the city centre districts. Going forward, however, over 185,m 2 of office development is under construction and scheduled for completion in the city centre in the next 24 months. While this is a significant increase in the quantum of office space available in the Dublin city centre market, the large quantity of office development either moved to a later date or put on hold indefinitely should insulate the city centre from prolonged over-supply and vacancy issues once the commercial property market and the wider economy recovers from their current difficulties. Murray O Laoire 836 Fumbally Square Lawrence Re 65 Watermarque Building Irish Missionary Serv /7 South Circular Rd 28 CB Richard Ellis Limited

6 CB RICHARD ELLIS MARKET VIEW DUBLIN OFFICES Q4 28 SUBURBAN DUBLIN SUBURBAN TAKE-UP Q Q % of office take-up in 28 located in the suburban markets 43% of suburban take-up located in the west suburbs Suburban vacancy rate now stands at over 18% 3, 25, Just over 63,m 2 of office space was let in the suburban markets by year-end 28, accounting for 37% of the overall Dublin office market. This level of letting activity represents a 19% decline on 27 take-up levels, when over 78,m 2 of lettings were signed. Due primarily to a single, large letting in Q3 28, the west suburbs accounted for the single largest portion (43%) of take-up in the Dublin suburbs. The south suburbs were 28 s most consistently sought after suburban location for office occupiers, however, with over 4,m 2 signed office lettings each quarter of 28. The north suburbs accounted for only 19% of total suburban take-up in 28. Take-Up (Sq M) 2, 15, 1, 5, Q4 26 Q1 27 Average Q2 27 Q3 27 DUBLIN SUBURBAN TAKE-UP Q4 28 Q4 27 Q1 28 Q2 28 Q3 28 Q4 28 Office letting activity in the suburbs during the fourth quarter of 28, at 12,26m 2, accounted for a respectable 36% of overall take-up in Dublin in the period. Take-up in the suburban districts was down significantly (49%) in Q4 28 compared to the 23,446m 2 of office lettings signed in the previous quarter. This is due primarily to the aforementioned large letting achieved in the west suburbs in Q3 28. Notwithstanding this letting, transactional activity in the suburban markets actually increased by 26% in the last three months of 28. North Suburbs 41% South Suburbs 42% Approximately 78% of lettings signed in 28 were smaller than 4,645m 2. There were no lettings between 4,645m 2 and 9,29m 2 in size. The large letting in the west suburbs in Q3 28 accounted for 22% of suburban take-up in 28. In the last three months of 28, lettings smaller than 465m 2 accounted for 44% of suburban take-up while lettings between 929m 2 and 1,858m 2 in size accounted for a further 34%. There were no lettings larger than 1,858m 2 in Q ,m 2 of office development was completed in the suburbs in 28, accounting for 68% of completions in the overall Dublin market. This new supply (primarily occurring in the south suburbs) has contributed to the sharp increase in the suburban vacancy rate to 18.6% in the last four months of 28. While this is not a welcome development, signs that demand for office accommodation is now shifting towards suburban locations are an encouraging counter-factor. Sq M West Suburbs 17% DUBLIN SUBURBAN NEW OFFICE SUPPLY 28 & 29 14, 12, 1, 8, 6, 4, 2, North Suburbs South Suburbs West Suburbs CB Richard Ellis Limited

7 CB RICHARD ELLIS MARKET VIEW DUBLIN OFFICES Q4 28 Take-Up (Sq M) DUBLIN SOUTH SUBURBS TAKE-UP VS VACANCY Q Q4 28 2, 18, 16, 14, 12, 1, 8, 6, 4, 2, - Q4 26 Q1 27 Q2 27 SOUTH SUBURBS TAKE-UP BY OCCUPIER TYPE Q4 28 Business/Services 42% Q3 27 Q4 27 Public Sector 5% Q1 28 Q2 28 Q3 28 Q Vacancy Rate % SOUTH SUBURBS Take-up in the south suburbs most consistent during 28 South suburbs continue to attract majority of suburban office demand Vacancy rate increased to 13.4% in Q4 In total, more than 23,m 2 of office accommodation was let in the south suburbs in 28, a decline of more than 5% on the record take-up recorded in 27. Aside from a surge in take-up during Q2 28 when take-up reached 8,5m 2, the south suburbs performed in a generally consistent manner during the year 28, ending with take-up of 5,58m 2 in Q4. Business service tenants accounted for more than half (56%) of office letting activity in the south suburbs in 28 while computers/high-tech tenants accounted for a further 24%. The largest letting in the south suburbs in 28 was the letting of 3,252m 2 to Tyco Healthcare at Cherrywood Business Park. Of the office lettings signed in Q4, computers/high-tech tenants accounted for the majority (53%) of office accommodation let, while business services accounted for 42% and the public sector accounted for 5%. The largest letting in Q4 28 was 1,479m 2 to Changing Worlds (IT) at the Atrium Building in Sandyford. KEY SOUTH SUBURBS LETTINGS Q4 28 Computers / Hi-tech 53% In direct contrast with 27, there were no office lettings in 28 any larger than 4,645m 2 in the south suburbs. Lettings between 465m 2 and 929m 2 accounted for 32% of 28 takeup and lettings between 929m 2 and 1,858m 2 in size accounted for another 32% in 28. A further 22% of office lettings in the year were smaller than 465m 2. All of the lettings signed in the souths suburbs in Q4 28 were smaller than 1,858m 2 in size. The majority (53%) of office accommodation let in this district in the period were between 929m 2 and 1,858m 2, but 37% of lettings were smaller than 465m 2 as well. Occupier Sq M Address Changing Worlds 1,479 Block A, The Atrium 3M 1,22 The Park, Carrickmines Fitzwilton 35 Block 7, Beech Hill MBSL 3 Classon House, Dundrum Within the suburban markets, the south suburbs has seen (and will see) the greatest quantum of office development in terms of total square metres constructed. There is nearly 61,m 2 of office development under construction and scheduled for completion in 29 and this will undoubtedly have an impact on vacancy and rental levels. Indeed, the vacancy rate in the south suburbs shifted upwards significantly in the last three months of 28 to 13.4%. 28 CB Richard Ellis Limited

8 4CB RICHARD ELLIS MARKET VIEW DUBLIN OFFICES Q4 28 NORTH & WEST SUBURBS DUBLIN NORTH & WEST SUBURBS TAKE-UP Q Q4 28 Over 39,m 2 of office accommodation was let in the north and west suburban markets in 28, accounting for almost 24% of the letting activity in Dublin overall. As in 27, take-up in these markets remained much more inconsistent quarter-onquarter than other Dublin sub-markets. For example, in the first quarter of 28, the west suburbs saw take-up of just only 2% of the letting activity in the north suburbs (6,46m 2 ). In the third quarter only 153m 2 of office accommodation was let in the north suburbs while nearly 17,8m 2 was let in the west suburbs. Square Metres Q4 26 Q1 27 Q2 27 Q3 27 Q4 27 Q1 28 Q2 28 Q3 28 Q4 28 In Q4 28, the north and west suburbs together accounted for almost 7,m 2 or 21% of overall letting activity in Dublin overall, and 58% of letting activity that occurred in the the suburban markets. The most significant letting that occurred during Q4 28 was the letting of 2,9m 2 at Swords Business Campus to Doosan. Also notable was the letting of 1,461m 2 to Allianz at Park West, Dublin 12. DUBLIN NORTH & WEST SUBURBS TAKE-UP BY SIZE Q4 28 1,859-4,644 Sq M 3% North Suburbs West Suburbs <465 Sq M 49% Just under half (49%) of office letting activity in the north and west suburbs in Q4 was accounted for by lettings smaller than 465m 2. A significant amount of letting activity occurred in size ranges that could be called medium to large. Approximately, 3% of office accommodation let in the fourth quarter was between 1,859m 2 and 4,644m 2, while an additional 21% of office lettings were for sizes between 93m 2 and 1,858m 2. Computers/high-tech tenants were responsible for 42% of the total office lettings signed in the north and west suburbs in 28, while business services contributed to another 34% of letting activity in these districts. The public sector was also active in 28, accounting for 12% of the office take-up in the north and west suburbs in 28. In the last three months of the year, business services tenants signed 2,931m 2 of office accommodation, accounting for 42% of take-up for that period. Interestingly, financial services tenants (who have been relatively quiet in other sub-markets at the end of 28) accounted for 27% of take-up in the north and west suburbs, while computers/high-tech tenants accounted for a further 19% and the professional services a further 12%. 93-1,858 Sq M 21% DUBLIN NORTH & WEST SUBURBS TAKE-UP BY OCCUPIER TYPE Q4 28 Financial 27% Business/Services 42% Computers/ Hi tech 19% Professional 12% 28 CB Richard Ellis Limited

9 CB RICHARD ELLIS MARKET VIEW DUBLIN OFFICES Q4 28 EU OFFICE RENT INDEX Q3 28 EUROPEAN OFFICE MARKET Leasing activity remains stable but weaker than last year s levels 25.% 2.% 15.% 1.% 5.%.% -5.% -1.% -15.% -2.% Sep-93 Sep-94 Sep-95 Sep-96 Sep-97 Sep-98 Sep-99 Sep- Sep-1 Sep-2 Sep-3 % Change pa Nominal Terms Index Sep-4 Sep-5 EU OFFICE TAKE-UP - MAJOR 15 MARKETS Q3 28 Sep-6 Sep-7 Sep Index (June 1988 = 1) Office rents grew 5.4% year-on-year in Q3 28 Vacancy rates rose for the second consecutive quarter to 7.25% Despite economic uncertainty, rents remained broadly stable across Europe in Q3 28. While the CBRE EU-27 office rent index showed a slight fall quarter-on-quarter of.1%, compared to the same period in 27 rents grew by 5.4%. The split between markets where rental levels have fallen, such as London, Dublin and Barcelona, increased in Q3. Additionally, prime rents in London s West End fell for the first time in Q3 by just over 4%, as the economic woes that had previously been focussed on the financial sector began to spread to other sectors of the economy. A number of other markets (Paris, Frankfurt, Madrid) are also expected to experience falls in prime rents over the next six months as occupiers become more cost-sensitive in the tougher economic climate. (Thousand sq m) 12, 1, 8, 6, 4, 2, EU-27 OFFICE RENTAL CYCLE Q4 28 Rental Growth Accelerating Q3 28 Rents Bottoming Out Copenhagen Madrid Dublin Milan D M C M Paris B Brussels Geneva Athens Vienna P G A V F Frankfurt Berlin W Warsaw Lyon L B O MMoscow Oslo Munich L London West End Rome R M S B Stockholm L London City Budapest B T Barcelona Hamburg London H B TV Helsinki H Birmingham Rental Growth Slowing A Amsterdam E Edinburgh M Manchester D Dusseldorf Z Zurich L Lisbon Rents Falling Trends in the volume of take-up from the first half of 28 continued into the third quarter. In the main 15 office markets tracked by CB Richard Ellis, take-up was just over 2 million square metres. It is obvious now, however, that negotiations have become increasingly protracted and occupiers are becoming more cautious, so the outlook for coming quarters is increasingly subdued. Increased caution has shown itself in that take-up is now predominantly relocation and consolidation rather than outright expansion into new office accommodation. Brussels, Paris, Amsterdam and Barcelona all showed stronger take-up in Q3 28 than in the same period in 27, but many of these deals were protracted negotiations rather than new activity. The CB Richard Ellis EU-27 Vacancy Rate Index rose for a second consecutive quarter in Q3 28 to 7.25%, which is almost half a percentage point higher then the same period in 27. It is important to note, however, that vacancy rates vary quite a bit from market to market. London, Paris, Vienna and Copenhagen continue to maintain sub-5% vacancy rates, while the Prague market s vacancy rate moved from 5.59% to 8.57% in Q3 28. The German markets of Berlin and Frankfurt maintain relatively high office vacancy rates, but both have seen decreases from Q2 to Q3 of this year to 9.61% and 11.94%, respectively. The scale of the development pipeline is also varied from market to market. In London and Madrid, for example, development completions have hit a peak this year, whereas in markets such as Frankfurt, Barcelona and Brussels, completions are not expected to peak until 21, after which the lack of new schemes starting now will curtail supply growth. 28 CB Richard Ellis Limited

10 CB RICHARD ELLIS MARKET VIEW DUBLIN OFFICES Q4 28 INVESTMENT PRIME DUBLIN OFFICE YIELDS Total domestic investment spend for 28 less than.5 billion Yields continue to expand in the absence of bank liquidity Falling values and expanding yields now experienced across Europe Commercial property becoming a self-financing asset class for those with credit The fourth quarter of 28 saw a continuation of the virtual standstill that had developed in the Irish investment market in 28. No new transactions were reported in Q4 28, meaning that the total for domestic investment spend for 28 stood at 5 million, compared to the over 1.9 billion spent in 27. The continued problems in the banking sector and the lack of credit available to fund investment purchases continue to hold back this sector. Prime Yield % As has been mentioned in previous bulletins, a reluctance on the part of lenders to re-adjust values (together with funding difficulties) has held back any investors returning to the market. In the continued absence of transactions, we believe that prime yields have moved out 375 basis points in the past year, putting prime office yields in Dublin at approximately 7.5% at the end of 28, with most of the yield shift occurring in Q4 28. TOTAL RETURNS (OFFICE) Almost every major commercial property investment market has seen an increase in yields and falling values in 28, including some markets that had previously resisted downward pressure on property values such as Sofia, Milan and Moscow. Total Return % While previously the most concerning factor affecting the property sector was the lack of liquidity in the market, the slowing occupier demand has now put downward pressure on rents although to date the declines appear to be marginal while the supply pipeline has been slowed or effectively stalled, shielding most markets from continued oversupply distortions that would contribute additional pressure on property values. While there was hope that the reduction in the commercial stamp duty rate in Ireland as well as falling interest rates would stimulate some buying activity, there has been no rush back to the market as the financial crisis continues and credit available is shrinking as banks focus on deleveraging. With increased yields and fallen interest rates, however, Irish commercial property has become effectively self-financing Dublin Birmingham Manchester 1993 Edinburgh 1994 City 1995 Paris 1996 West End Barcelona Oslo Madrid Sofia Stockholm Vienna Brussels Budapest Berlin Moscow Milan % points -3-4 Source: IPD/CB Richard Ellis Research PRIME OFFICE YIELDS 3rd Quarter 7 4th Quarter 7 1st Quarter 8 2nd Quarter 8 3rd Quarter 8 4th Quarter 8 Source: IPD/CB Richard Ellis Research 28 CB Richard Ellis Limited

11 CB RICHARD ELLIS MARKET VIEW DUBLIN OFFICES Q4 28 MAJOR DUBLIN OFFICE LETTINGS Q4 28 Property District Size (M 2 ) Occupier Lease Length 4 Grand Canal Square Dublin 2/4 11,241 William Fry Confidential Swords Business Campus North Suburbs 2,9 Doosan Confidential Block A, The Atrium, Stillorgan South Suburbs 1,479 Changing Worlds Confidential Unit 18a, Park West South Suburbs 1,461 Allianz 5 Yr The Park, Carrickmines South Suburbs 1,22 3M 4 Yr 9 Mos Simmonscourt, RDS Dublin 2/4 925 Irish Distillers Confidential Fumbally Square Dublin 6/8 836 Murray O Laoire 2 Yr The Watermarque Building Dublin 2/4 65 Lawrence Re 25 Yr 563/567 South Circular Road Dublin 6/8 63 Irish Missionary Services Confidential DUBLIN OCCUPATIONAL MARKET STATISTICS Q4 27 Q1 28 Q2 28 Q3 28 Q4 28 Take-Up 57,81M 2 44,277M 2 33,3M 2 58,562M 2 32,966M 2 Overall Vacancy Rate* 12.25% 11.4% 11.6% 11.7% 15.8% City Centre Vacancy Rate* 1.% 1.% 1% 9% 13% Suburban Vacancy Rate* 14.15% 13.1% 13.1% 14.1% 18.6% Office Investment Spend million 15.9 million 66.6 million 25.8 million N/A Prime Yield 3.75% 4.% 4.75% 5.5% 7.5% * The CBRE vacancy rate time series was re-based in Q1 28 to take account of new definitions. OFFICE SCHEMES DUE FOR COMPLETION Dublin 1/3/7 63,45 24,636 Dublin 2/4 34,246 62,136 Dublin 6/8 11,511 3,562 North Suburbs 9,895 31,6 South Suburbs 6,915 7,429 West Suburbs 3,247 31, CB Richard Ellis Limited

12 CB RICHARD ELLIS MARKET VIEW DUBLIN OFFICES Q4 28 MANAGING DIRECTOR BUSINESS DEVELOPMENT CORPORATE SERVICES OFFICE AGENCY IRISH CAPITAL MARKETS Guy Hollis Willie Dowling Paddy Conlon Sarah Ward James Mulhall Darren Nugent Lisa Geoghegan Alan Moran Sean O Brien Colm Luddy Robert Murphy Antoine Xavier OVERSEAS CAPITAL MARKETS DEVELOPMENT CONSULTANCY RESEARCH CB Richard Ellis Connaught House Number One Burlington Road, Dublin 4, Ireland Telephone: DUBLIN MAP Caroline McCarthy Andrew Gunne Fergus Keane Barry Mangan Dessie Kilkenny Suzanne Barrett Marie Hunt Patrick Koucheravy Elaine Linnane Emma Courtney firstname.lastname@cbre.com DISCLAIMER 29 CB Richard Ellis 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 CB Richard Ellis clients, and cannot be reproduced without prior written permission of CB Richard Ellis Ireland. EMEA Offices Abu Dhabi (971) Aarhus CB Richard Ellis Cederholm A/S (45) Aix-en-Provence (33) Amsterdam (31) Athens CB Richard Ellis- Atria (3) Barcelona (34) Belfast (44) Belgrade (381) Berlin (49) Birmingham (44) Bratislava (421) Bristol (44) Brussels (32) Bucharest CB Richard Ellis Eurisko (4) Budapest (36) Bulawayo (263) Cape Town Broll Property Group (27) Casablanca (212) Copenhagen CB Richard Ellis Cederholm A/S (45) Dubai (971) Dublin (353) Durban Broll Property Group (27) Edinburgh (44) Frankfurt (49) Gaborone (267) Geneva CB Richard Ellis PI Performance (41) Glasgow (44) Gothenburg (46) Hamburg (49) Harare (263) Helsinki Realia Management Oy (358) Hoofddorp (31) Istanbul (9) Jersey (44) Johannesburg Broll Property Group (27) Kampala (256) Kiev (38) Krakow (48) Leeds (44) Kolding CB Richard Ellis Cederholm A/S (45) Lisbon (351) Liverpool (44) London (44) Lyon (33) Madrid (34) Malaga (34) Manchester (44) Marbella (34) Marseille (33) Milan (39) Moscow (7) Munich (49) Nairobi (254) Neuilly sur Seine (33) Oslo CB Richard Ellis Atrium AS (47) Palma de Mallorca (34) Paris (33) Port Elizabeth Broll Property Group (27) Porto (351) Poznan (48) Prague (42) Pretoria Broll Property Group (27) Rome (39) Sofia - Elta Consult AD (359) Southampton (44) Stockholm (46) Saint Petersburg Maris Properties LLC (7) Tel Aviv M.A.N. Properties Real Estate Consultants (972) The Hague (31) Thessaloniki CB Richard Ellis-Atria (3) Toulouse (33) Valencia (34) Vienna (43) Warsaw (48) Wroclaw (48) Zagreb (385) Zaragoza (34) Zurich CB Richard Ellis PI Performance (41)