GLOBAL OFFICE OCCUPIER GUIDE

GLOBAL OFFICE OCCUPIER GUIDE CBRE GLOBAL RESEARCH AND CONSULTING A collaborative CBRE Global Research and Consulting Report Special Thanks to: George Relyea Bruno Beretta Ronald Chan Kate Gray Richard Holberton Victor Lopez Kim Mercado Roelof van Dijk

GLOBAL OFFICE OCCUPIER GUIDE CBRE GLOBAL RESEARCH AND CONSULTING

FOREWORD The CBRE Global Office Occupier Guide has been published and revised since 2005 and this version begins a new era as the Guide is now available as a web-based application on ERIX, CBRE s global research portal. The original intention remains the same: Real estate leases are not easy to understand, negotiate or execute and this Guide is a handy, cross-country reference on leasing practices and a service of CBRE to its clients to help them navigate cross-market leasing complexities. Features Profiles 56 countries leasing standards representing 122 cities Includes analysis on leasing attributes and protocols such as: Typical lease length Space measurement standards Occupancy cost analysis Typical incentives Tenant improvement allocations Transaction costs Negotiation processes Market and other lease provisions Provides web sites and direct contact information by country for more market information Benefits Easy access to summary analysis by country for comparison purposes Useful for site selection, multi-market negotiations, financial planning, risk assessments, workplace planning and other strategic planning requirements Preparing such a guide on a global scale was originally the brainchild of George Relyea, and we are thankful for his dedication to this project and for the diligence of his work. The Global Office Occupier Guide would not be feasible, however, without the efforts of many CBRE professionals worldwide, who provide us with the important detail of leasing practices in their respective markets. We are indebted to several who guided this effort including Gary Halstead, Lisi Sesnovich, and Abby Pitzner. In addition, we would like to thank and acknowledge all local market contacts and their regional managers George Relyea, Richard Holberton, Bruno Berretta, Ronald Chan, Kate Gray, Kim Mercado, Victor Lopez, and Roelof Van Dijk for their time and contributions to each country report. Finally, we would ask clients and CBRE professionals to contact us if we can assist you in any way. We welcome suggestions for improvements to this Guide and thoughts for other reference documents as we aim to meet the needs of our clients around the world. Karen Ellzey Executive Managing Director Global Corporate Services Raymond Torto, CRE, Ph.D. Global Research and Consulting Global Chief Economist May 15th 2012

USA George Relyea FIRST VICE PRESIDENT CBRE 200 Park Avenue New York, NY 10166 T +1 212 984 7187 F +1 212 656 0550 C +1 917 446 4534 george.relyea@cbre.com CANADA Roelof van Dijk RESEARCH MANAGER CBRE 145 King Street West, Suite 600 Toronto, ON M5H 1J8 T 416 847 3241 F 416 362 8085 roelof.vandijk@cbre.com LATIN AMERICA Victor Lopez DIRECTOR CBRE Montes Urales 470 2do. Piso, Lomas de Chapultepec México, DF, 11000 T +52 (55) 5284.3293 F +52 (55) 5284.0007 M + 52 (155) 4533 0086 victor.lopez@cbre.com ASIA Ronald Chan SENIOR MANAGER CBRE 4/F Three Exchange Square 8 Connaught Place Central, Hong Kong T 852 2820 2957 F 852 2810 0830 ronald.chan@cbre.com.hk Kim Mercado DIRECTOR CBRE 4/F Three Exchange Square 8 Connaught Place Central, Hong Kong T 852 2820 2800 F 852 2810 0830 D 852 2820 2876 kim.mercado@cbre.com.hk PACIFIC Kate Gray SENIOR MANAGER CBRE Level 5, 151 Pirie Street Adelaide, SA 5000 T +61 8 8110 3367 F +61 8 8110 3330 M +61 0401 610 766 kate.gray@cbre.com.au

EMEA Richard Holberton DIRECTOR CBRE Henrietta House Henrietta Place London W1G 0NB DDI 020 7182 3348 F 020 7182 2001 T 020 7182 2000 richard.holberton@cbre.com Bruno Beretta ANALYST CBRE Henrietta House Henrietta Place London W1G 0NB DDI +44 20 7182 3101 F + 44 20 7182 2001 M +44 7730203369 bruno.berretta@cbre.com TECHNICAL SUPPORT EMEAWS@cbre.com FOR MORE INFORMATION REGARDING GLOBAL RESEARCH AND CONSULTING ACTIVITY, PLEASE CONTACT: Nick Axford, Ph.D. Head of Research, Asia Pacific and Senior Managing Director, Global Research and Consulting +852 2820 8198 nick.axford@cbre.com.hk Follow Nick on Twitter: @NickAxford1 Peter Damesick, Ph.D. EMEA Chief Economist and Senior Managing Director, Global Research and Consulting +44 20 7182 3163 peter.damesick@cbre.com Follow Peter on Twitter: @cbre_uk_news Asieh Mansour, Ph.D. Head of Research, Americas and Senior Managing Director, Global Research and Consulting +415 772 0258 asieh.mansour@cbre.com Follow Asieh on Twitter: @AsiehMansourCRE Raymond Torto, Ph.D., CRE Global Chief Economist and Executive Managing Director, Global Research and Consulting +617 912 5225 raymond.torto@cbre.com Follow Ray on Twitter: @RaymondTortoPhD

Americas Canada & United States of America Canada... 7 United States of America... 12 Manhattan... 19 Latin America Argentina... 24 Brazil... 29 Chile... 34 Colombia... 39 Mexico... 43 Panama... 48 Peru... 53 Venezuela... 59 EMEA Austria... 64 Bahrain... 69 Belgium... 73 Czech Republic... 78 Denmark... 83 Finland... 88 France... 93 Germany... 100 Greece... 105 Hungary... 111 Ireland... 116 Israel... 122 Italy... 127 Kazakhstan... 133 Luxembourg... 139 Morocco... 144 Netherlands... 148 Norway... 153 Poland... 157 Portugal... 162 Romania... 167 Russian Federation... 172 Saudi Arabia... 180 Serbia... 184 South Africa... 189 Slovakia... 196 Spain... 201 Sweden... 207 Switzerland... 211 Turkey... 216 Ukraine... 220 United Arab Emirates... 227 United Kingdom... 233 Asia Pacific Australia... 239 New Zealand... 244 China... 249 Hong Kong... 255 India... 262 Japan... 268 Malaysia... 274 Philippines... 279 Singapore... 284 South Korea... 289 Taiwan... 295 Thailand... 300 Vietnam... 305 Page 6 of 309

Canada What s Typical? Term Negotiable, generally any length Breaks Negotiable Renewal Negotiable Rent Gross Free rent Negotiable Escalation Negotiable Security Negotiable Fit-out Landlord often contributes or builds Tenant broker Landlord pays Right to sublet Common Transparency High CBRE Offices Calgary +1 403 263 4444 Edmonton +1 780 424 5475 Halifax +1 902 492 2090 London +1 519 673 6444 Montréal +1 514 849 6000 Moncton +1 506 386 3783 Ottawa +1 613 782 2266 Saint John +1 506 648 3422 St. John s +1 709 754 1454 Toronto Downtown +1 416 362 2244 Toronto North +1 416 494 0600 Toronto West +1 416 674 7900 Vancouver +1 604 662 3000 Waterloo Region +1 519 744 4900 Windsor +1 519 252 4095 Winnipeg +1 204 943 5700 For More Information About CBRE Canada www.cbre.ca/ About CBRE Canada Research http://www.cbre.ca/en/research/ For Local Market Reports http://gkc3.cbre.com/search/search.aspx Contact Roelof Van Dijk Research Manager, Canada + 416 847 3241 Roelof.VanDijk@cbre.com Version 7 / Jul-2012 Canada Page 7 of 309

LEASE LENGTH Term The lease term is negotiable and can be for any length. A term of 5 10 years is most common. Large tenants often negotiate terms of 10 15 years with specific rights for renewals, for expansion, and for input on specific operating issues. Termination or Break No right to terminate (break) or extend exists unless included in the lease. Termination options are not typical. When included they often provide for a penalty payment or termination payment if exercised. Renewal An option to extend usually includes a provision for determining fair market value, which may be subject to arbitration in the event of a disagreement. SPACE MEASUREMENT Definitions While Canada is officially a metric country, office space is measured in square feet, except for government leases. 1 square foot = 0.09232 square meters; 1 square meter = 10.763104 square feet. Rentable Area: Landlords usually quote rentable square feet, with washrooms and other common areas allocated to each space leased, so that the rentable square footage exceeds the usable square feet. Most landlords measure usable area using the BOMA (Building Owners and Managers Association) Method. Carpetable Area: Space planners normally measure the net usable area, sometimes called carpetable area, which is the floor area of space occupied exclusively by the tenant. It excludes primary circulation (space between elevators and tenant space) and excludes space occupied by washrooms, exterior walls, and convectors. Gross-Up Factor: In Canada, the term gross-up factor has the same meaning as loss factor in the U.S. Gross-up factor = (Rentable area usable area) / Rentable area. Efficiency Gross-up factors vary from location to location. In Toronto: The gross up factor depends on which BOMA standard the landlord uses. Older buildings generally use BOMA 1980. New ones use BOMA 1996. The gross-up factor can vary from a low of 5% for a full floor tenant under BOMA 1980 to as high as 20% for a multi-tenant floor under BOMA 1996. In Vancouver: 12 18% is typical. In Calgary: 12 20% is typical. In Toronto: 11% is typical. In Montreal: 13% is typical. Canada Page 8 of 309

OCCUPANCY COSTS Rent Rent Quoted: Landlords quote Base Rent in Canadian dollars (CAD) per rentable square foot per year. Net Rent: In most Canadian cities, rent is expressed as net, not gross, rent. Net rent excludes operating costs, real estate taxes, building insurance and utilities. Rent Payable: The tenant normally pays rent monthly in advance. Rent Increases: Leases may include negotiated increases over the lease term or may be indexed annually. Free rent and other incentives: Incentives are negotiable, and may include one or more of: free rent, tenant improvements, move allowance, takeover of rent at previous building, and/or furniture allowance. Operating Expenses The landlord estimates operating expenses at the start of each year. The tenant pays operating costs monthly, along with the rent, based upon these estimates. The landlord reconciles actual costs at year-end, then charges or credits the tenant based on final totals. The landlord typically amortizes capital improvements using generally accepted accounting practices. The tenant may have the right to review the landlord s summary statements and supporting documents. Gross occupancy cost = rent + operating costs + taxes + hydro. The term hydro means electricity used in the tenant s premises. The term gross rent is rarely used in Canada. When used, it has the same meaning as gross occupancy cost, but unlike in the U.S., it includes the cost of electricity. Taxes Property Taxes: The tenant typically pays a proportionate share of property taxes. If the assessed taxes are not final at the start of a lease year, the tenant pays them based upon the landlord s estimates, and the account is reconciled at year-end. Goods & Services Tax (GST): This is equivalent to VAT in other countries, and applies to all rental amounts and operating costs, and is payable to the landlord. GST is 5%, effective January 2008. Provincial Sales Tax (PST): Some provinces charge PST additionally. Harmonized Sales Tax (HST): A few provinces combine GST and PST into an HST. Utilities The tenant pays for electricity (known as hydro) and all other utilities to operate the premises. The landlord uses one of three methods to calculate the electricity charge: (1) Proportionate share: the landlord charges for electricity per rentable square foot. (2) Direct meter: the tenant pays the utility company directly, based on an electric meter. (3) Submeter: the landlord buys the electricity from the utility company. The tenant pays the landlord, without a mark-up, based on the landlord s meter. Some landlords provide suite/floor specific metering. Tenant Improvements Landlord Work: The landlord normally pays for base building improvements such as suspended ceilings, ceiling lighting, HVAC distribution, sprinklers, and common washrooms. Tenant Improvements: The tenant pays for its own improvements including hard costs (construction) and soft costs (architect, engineers) for the tenant work. For small installations, the landlord usually handles the design and construction. For space not in move-in condition, the landlord normally provides an allowance. For larger installations, the tenant normally hires an architect or designer and a contractor. Landlords require pre-approval of the contractor and may direct the tenant to select from a short list of approved contractors. Landlords typically charge for the review of the design documents and require some supervisory rights over the improvement work. Tenant Improvement Costs: Costs in CAD per square foot for Class A or Prime buildings are as follows: In Toronto, Montreal, Ottawa, Halifax, and Winnipeg: tenant construction: CAD 45 100; furniture: CAD 30 60, IT wiring: CAD 4 10, design and engineering: CAD 4 12. In Calgary, Edmonton, and Vancouver: tenant construction: CAD 60 80; furniture CAD 30 60; IT wiring: CAD 3 20; design and engineering: CAD 7 12. Canada Page 9 of 309

Restoration Tenants often negotiate the restoration obligations. Specialized leasehold installations generally have specific restoration obligations. Security Deposits and Guarantees Typically, a security deposit can be either cash or a letter of credit. A tenant with a strong credit rating may provide the equivalent of 0 2 months rent as security. A start-up company may have to provide 3 6 months rent. When security is a cash deposit, either the landlord or the tenant receives the interest on it, as negotiated. TRANSACTION COSTS Brokerage Commissions The landlord or sublandlord pays the commission to the broker who represents the tenant, and pays a listing fee to the broker who represents the landlord or sublandlord. In most Canadian cities, the landlord pays the tenant s broker a commission calculated as a flat fee per square foot per year at a rate determined by industry standard, which varies by city. Sometimes the commission is calculated as a percentage of the rental amount over the term of the lease. Commissions to the tenant s broker in larger cities range between CAD 0.60 1.25 per square foot per annum. Legal Fees The landlord pays its lawyer(s) to prepare the lease. Each party pays its lawyer(s) to negotiate the legal terms in the lease. OTHER LEASE PROVISIONS Laws and Practices The Real Estate Business Brokers Act, with provincial governing councils and local real estate boards, regulates the real estate industry. Tenant representation is well developed in Canada. Tenants typically engage a broker for real estate transactions, including major renewals. Landlords utilize in-house staff or engage brokers to represent them. Large brokerage firms often have separate teams representing the tenant and the landlord. Negotiating The tenant engages a broker who negotiates the business terms with the landlord, and summarizes the terms in an Offer to Lease or a Proposal Letter. If both parties execute the offer, it is legally binding, unless the offer states that it is conditional upon subsequent negotiation of a lease and additional due diligence criteria. Following an unconditional acceptance of an offer to lease, the tenant delivers a security deposit (usually equivalent to two months rent), which may be applied to first rent due or the first month s rent, and the balance is held as a security deposit for the term of the lease. If the parties do not execute the lease, the security deposit is normally returned to the tenant, as most agents would provide for this. When the offer is complete, the landlord s real estate lawyer prepares the lease, although in some markets, a large corporate tenant may provide the lease. The tenant s real estate lawyer and the broker review and negotiate the lease terms with the landlord. When both sides have agreed on all terms, the landlord s lawyer prepares execution copies for signature. Standard Lease In Canada (except Quebec), standard tort and contract laws apply. Each landlord has its own standard lease. In Montreal there are specific Articles in the Quebec Civil Code relating to real estate, starting at article 18.51. There are no standard offers to lease, but landlords normally use their own leases, leaving the tenant to negotiate variances. Canada Page 10 of 309

Right to Sublet Subletting (subleasing) is the most common way to dispose of unneeded space. Typically, the landlord agrees and sets forth in the lease agreement not to withhold or delay consent unreasonably. The landlord may retain some or all of the following rights: to approve the subtenant, to recapture the space, to impose conditions such as limiting the number of subtenants, exclude certain business uses, and impose financial and operational restrictions. Option to Expand & Right of First Refusal These are negotiable especially for large tenants with long-term leases. A right of first refusal gives the tenant the right to secure additional space that becomes available during the term of the lease. Late Delivery by Landlord Penalties are negotiable. In Montreal, a typical penalty is one month of free rent for each day the landlord is overdue. Holdover by Tenant Negotiable. Signage and Naming of Building Exterior signage may be negotiable. Naming the building may be negotiable, especially for large long-term tenants. OFFICE LEASING MARKET Transparency Lease and sales transaction data and other market information are available to tenants through leading brokerage firms like CBRE. Professional real estate providers generally know the deal terms and landlord concessions of recent completed deals, and are willing to share this information with clients they represent. Building Classification Class A: High-quality buildings with high-quality finishes, state-of-the-art systems, and excellent accessibility. The very best buildings are sometimes called premier, Class AA or AAA, or trophy buildings. Class B: Average quality buildings with average rents. Building finishes are fair to good. Systems are adequate. Class C: Buildings of below-average quality and below-average rents. PURCHASE AND SALES Agency Fees In investment deals, the vendor will usually enter into a listing agreement with a broker, who will act as the advisor to both the vendor and the buyer. In the listing agreement, the vendor agrees to pay the listing brokerage a percentage of the sale price of the property or a negotiated amount. Information contained herein, including projections, has been obtained from sources believed to be 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 confirm independently its accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of the CBRE Global Chief Economist. Canada Page 11 of 309

United States of America What s Typical? Term Negotiable, generally any length Breaks Negotiable Renewal Negotiable Rent Gross Free rent Negotiable. 1 12 months typical Escalation Negotiable Security Negotiable Fit-out Landlord often contributes or builds Tenant broker Landlord pays Right to sublet Common Transparency High CBRE Offices Atlanta +1 404 504 7900 Boston +1 617 912 7000 Chicago +1 312 935 1400 Dallas +1 972 458 4800 Denver +1 720 528 6300 Detroit +1 248 353 5400 Houston +1 713 881 0900 Los Angeles +1 213 613 3333 Miami +1 305 374 1000 New York +1 212 984 8000 San Francisco +1 415 772 0123 Washington, DC +1 202 783 8200 For More Information About CBRE United States of America http://www.cbre.us/pages/home.aspx About CBRE United States of America Research http://www.cbre.us/research/pages/default.aspx For Local Market Reports http://gkc3.cbre.com/search/search.aspx Contact George Relyea First Vice President +1 212 984 7187 george.relyea@cbre.com United States of America Page 12 of 309

LEASE LENGTH Term Generally, a lease can be of any length. Five to ten years is most common. Three years is common for small transactions, especially when the tenant requires minimal renovation. Large transactions can be for 15 years or more, especially when a tenant requires substantial fit-out (build-out). Tenants with long-term leases often protect themselves with expansion, extension, and even contraction rights in the lease documentation. Termination or Break The tenant has a right (option) to terminate (break) a lease only if stipulated in the lease. Termination options usually provide that if the tenant exercises its option to terminate, the tenant will reimburse the landlord unamortized costs, including fit-out, incentives, and fees, and sometimes pay additional financial penalties. Renewal An option to extend or renew may be negotiable. A renewal option usually provides for a revised base rent, such as 95% of fair market rent. Most leases specify how to resolve disagreements as to market rents. SPACE MEASUREMENT Definitions Rentable Area (Rentable Square Feet, RSF): The landlord quotes the amount of space on a rentable square foot basis. One square foot equals 0.09232 square meters. The rentable area typically includes the usable area within the tenant s premises plus an allocation of common areas of the building. Usable Area (Usable Square Feet, USF): The usable area is the amount of space that the premises occupy, although measurement results depend on the measurement method used. Landlords in most U.S. cities use the BOMA (Building Owners Management Association) method of measurement to determine the usable and rentable areas. In New York City, landlords use the Real Estate Board of New York (REBNY) method of measurement to determine the usable area. Net Usable Area (also known as carpetable area): Space planners often refer to the net usable area (carpetable area). This is the floor area occupied exclusively by the tenant. It excludes the area occupied by required washrooms, exterior walls, convectors along windows, and primary circulation, i.e., the corridor and elevator lobbies outside of the tenant s space. Load Factor: A pro-rata space allocation for building common areas, lobbies, hallways, washrooms, vertical penetrations, etc. Load Factor = Add-on Factor = Core Factor = (Rentable Area Usable Area) / Usable Area Loss Factor: The percent of the rentable area that is not usable. A loss factor of 20% means that 20% of the rentable area is not usable area, or in other words, the usable area is 80% of the rentable area. Loss Factor = (Rentable Area Usable Area) / Rentable Area. Efficiency Load and loss factors depend upon floor size, amount of common areas within a building, floor configuration, and measurement method. Multi-tenanted floors may have higher loss or load factors than single-tenanted floors. Load factors are generally in the 12 15% range. Manhattan load factors are at least 25% for full floor tenants, and are usually higher in newer buildings. In San Francisco, 12 15% is common, but buildings built prior to 1967 and after 2000 tend to have higher factors of 18 25%. United States of America Page 13 of 309

OCCUPANCY COSTS Rent Rent Quoted: Rent is usually quoted in U.S. dollars per rentable square foot per year. In several Pacific Coast markets, rent is quoted in U.S. dollars per rentable square foot per month. Gross Rent: The tenant normally pays rent on a gross basis (pays gross rent). Gross rent includes a tenant s proportionate share of base year operating costs (common area utilities and cleaning, management fees, etc.), real estate taxes and property insurance. The tenant pays its proportionate share of any increases in operating costs and real estate taxes each year. Gross rent in many US cities includes tenant s electricity, and is then called full service gross ( FSG ) rent. Net Rent: Occasionally, the tenant pays rent on a net basis, also known as triple net rent. Net rent excludes operating costs, real estate taxes, and property insurance. The landlord bills these costs to the tenant in addition to the net rent. Occupiers of single tenant office buildings normally pay rent on a net basis. Rent Payable: The tenant normally pays rent monthly in advance. Fixed Increases: Also called bumps or rent escalations. Parties often agree to a base rent increase annually or at specified future dates. Free Rent: Landlords in many markets give free rent as an incentive. Free rent can be given at the start of the lease or spread over the lease term. Operating Costs If Tenant Pays Gross Rent When a tenant pays gross rent, the landlord pays the base year operating costs of the building. The tenant pays its proportionate share of increases in operating costs for subsequent years, sometimes with a negotiated maximum, or cap. Common methods that landlords use to recoup operating cost increases are: Direct Operating: The tenant pays a proportionate share of operating cost increases. Operating costs are normally defined in the lease, and normally exclude the cost of amortized capital improvements and building management salaries. The landlord normally estimates the operating costs for the ensuing year and averages such costs over a twelve-month period. At the end of each year, the landlord provides an accounting of the actual costs. The landlord credits the tenant for any overages, or invoices the tenant for any underpayments. Tenants with leases that provide for direct operating increases should obtain the right to audit the landlord s financial records. Consumer Price Index (CPI): The tenant s rent adjusts for inflation based on a consumer price index, typically a local index published by the U.S. Department of Labor, Bureau of Labor Statistics. Fixed Increases: In some cases, the landlord pays all operating cost increases, and the tenant pays a fixed percentage increase in base rent, typically 2 3.5% per year. If Tenant Pays Net Rent When a tenant pays net rent, then the tenant pays its pro-rata share of the full operating costs. Taxes If Tenant Pays Gross Rent The landlord pays base year real estate taxes (property taxes), and the tenant pays its proportionate share of tax increases in subsequent years. The base year is normally the fiscal or calendar year closest to the first year of the lease term or the initial twelve months of the lease term. In most cases, the landlord provides an estimate of the real estate taxes for the ensuing year and averages such costs over a 12-month period. At the end of each year, the landlord provides an accounting of the actual costs and either credits the tenant for any overages or invoices the tenant for any underpayments. If Tenant Pays Net Rent The tenant pays its full pro-rata share of the real estate taxes. Neither value added tax (VAT) nor Goods and Services Tax (GST) applies in the US. United States of America Page 14 of 309

Utilities The tenant generally pays for electricity used in the premises, in one of the following ways: Direct Meter: The tenant pays the utility company directly, based on an electric meter. Submeter: The landlord buys electricity from the utility company and installs a meter to measure the tenant s usage. The tenant pays the landlord based on the meter, sometimes with a negotiable mark-up for the landlord. Per Square Foot Leased: The tenant pays dollar amount per rentable square foot, in addition to the base rent. The charge for electricity is sometimes called the electric rental inclusion factor (ERIF), which may be negotiable and may be subject to inspection of usage by an electrical engineer. The ERIF may be subject to future increases if electric rates charged to the landlord increases or the tenant s usage increases. Charges for above-standard electricity use, such as for data center space or for after hours HVAC use, may be billed separately. In 2012, a typical ERIF for normal office use ranged from USD 2.75 3.50 per square foot. Included in the Rent: Electricity is included when the tenant pays rent on a full service gross basis. Tenant Improvements Landlord Work: Landlords may deliver new space in a raw or shell condition, generally with a main lobby area, finished restrooms on each floor, ceilings, air conditioning equipment, and sometimes interior partitions. Landlords sometimes build out small spaces speculatively, as pre-builts, newly painted, carpeted, and ready to occupy, although typically without furniture or telecom wiring. Tenant Work: For office installations over 10,000 sq. ft. and for smaller, specialized installations, the tenant usually hires the architect and contractors, with the landlord s reasonable approval. Some landlords require pre-approved contractors and engineers. Landlords typically charge a fee to review design documents, but tenants can often negotiate exclusions or limitation of these charges, especially for a standard or for an initial installation. Landlords often contribute to the fit-out in some of the following ways: Tenant Improvement Allowance: Landlords can provide an allowance, typically expressed in USD per rentable square foot. Tenant improvement allowances are often usable for design fees, but generally not for furniture and fixtures. If actual costs exceed the amount of the allowance, the tenant pays the balance or the landlord pays for all or part, and amortizes the amount over the term of the lease at a predetermined interest rate. Workletter: For a small tenant, a landlord may offer a workletter, which is a written scope of work detailing the tenant improvements that the landlord will construct and pay for. Build-to-Suit: Many landlords will design and construct the premises to the specific needs of the tenant, especially for smaller installations. Tenant Work Costs: Fit-out costs for Class A buildings in major cities normally range from USD 80 160 per square foot, including design, engineering, construction, data cabling, furniture, and other move-related expenses. Construction costs and design fees are highest in New York, followed by Boston and San Francisco, slightly lower in Chicago and Washington, and still lower in southern cities like Atlanta and Miami. Suburban areas normally have lower construction costs than nearby urban centers. Restoration Restoration of the premises is negotiable, and may be limited to specific items such as tenant-installed internal stairways or to non-standard build-out. Security Deposits and Guarantees The tenant normally provides security either as a cash deposit or letter of credit. Tenants often negotiate with the landlord to keep the cash deposit in an escrow account. Interest on the cash security deposit may accrue to the landlord or to the tenant, as negotiated. Typically, interest does not accrue to the tenant in small leases. The amount of the security is negotiable, and depends upon the landlord s assessment of tenant s creditworthiness, the amount of the landlord s outlay for tenant improvements, free rent, commissions, local market practices, etc. A strong creditworthy tenant may pay 0 2 months rent as security. A startup company may pay 6 12 months rent or more. Parties often agree to a burn-down, which is a reduction over time of the amount of security the landlord holds, if the tenant fulfils certain obligations of its lease. United States of America Page 15 of 309

TRANSACTION COSTS Brokerage Commissions Methods of Calculation: A brokerage commission can be (1) a fixed percent of the total rent payable; as is common throughout the US. (2) Based on a sliding scale with a higher rate paid on rent in the earlier years than on subsequent years, the method used in Manhattan. (3) Based on the area leased. In San Francisco, Chicago, Colorado, and Massachusetts, the commission calculation is based on the area leased, and typically ranges from USD 1.00 1.50 per square foot per year. Payment Schedule: The owner may pay the entire commission immediately after the lease is fully executed, or in instalments, such as 50% at lease execution and 50% at lease commencement. Subleases: Sublease commissions and formulas vary from market to market. Legal Fees The landlord s lawyer typically prepares a first draft of the lease and negotiates legal terms with the tenant s lawyer. Some large corporate users and government entities require the use of their standard lease document, and provide the first draft of the lease. Each party pays its own legal fees. Because leases in the U.S. can be complex, legal fees tend to be higher than elsewhere. OTHER LEASE PROVISIONS Laws and Practices Laws Except in Washington, DC, laws that affect leases generally provide limited protection to commercial tenants; therefore, tenants rights must be addressed in the lease document. Incentives are negotiable. They may include free rent, tenant improvement (fit-out) allowance, moving allowance, assumption of tenant s rent obligation in its prior lease, allowance for furniture, fixtures, etc. A large tenant may negotiate for signage rights or the right to name a building. Practices Brokers and Agents: Tenants typically engage a tenant representative broker to represent their interests in site selection and negotiations of a new real estate transaction and for most renewals. Landlords use inhouse employees or outside brokerage firms to market their space and represent them in negotiations. Dual Agency: In some markets, large brokerage firms, like CBRE, may represent both the tenant and the landlord in a transaction, with different individual brokers or brokerage teams representing each party, and with proper disclosure. State real estate codes and laws usually stipulate the appropriate disclosure requirements. Negotiating Negotiation of Business Terms: The tenant s broker negotiates the business terms of the transaction with the landlord s agent. When both parties agree on the business terms, the tenant s broker prepares a non-binding term sheet, also known as a letter of intent, which outlines the business terms. Negotiation of Legal Terms: The landlord s lawyer typically produces a draft lease agreement, which includes agreed business terms, as outlined in the letter of intent, plus additional terms, known as legal terms. The tenant s lawyer negotiates the legal terms with the landlord s lawyer. Lease Execution and Delivery of Documents: When both sides agree on all terms, the landlord s lawyer prepares execution copies of the lease agreement for signature by the parties. The tenant signs the lease, and the tenant s lawyer delivers it to the landlord s lawyer along with a check for the first month s rent and the agreed upon security deposit. The landlord countersigns the lease and returns a copy to the tenant. If a Sublease: The subtenant and sublandlord follow the steps outlined above. In addition, the landlord reviews the sublease documents and prepares a consent document for signature by subtenant, sublandlord, and landlord. United States of America Page 16 of 309

Standard Lease Standard (off-the-shelf) lease documents are rarely used. Landlords typically use their own lease documents. Large corporate tenants frequently request use of their own commercial office lease form, which often lengthens the review of the lease agreement between the parties and their lawyers. Right to Sublet Subletting (subleasing) is the most common way for a tenant to dispose of unneeded space. Sublets have advantages and disadvantages when compared with direct leases Conditions: The master lease provides for conditions under which a tenant may sublet. Typically, the landlord agrees not to unreasonably withhold or delay consent and allows the tenant to choose its own broker to act as the sublease agent. The landlord usually retains the right to approve a subtenant, especially if the proposed subtenant is a company unrelated to the tenant. The lease may limit the number of subtenants that can occupy the space. The lease may exclude some or all of the following: specific types of businesses, existing tenants, and tenants that recently negotiated with the landlord directly. The landlord and the tenant negotiate as to which party will keep any profits over and above the original rental rate. The landlord and the tenant often agree to share any such profits based on an agreed formula, often on a 50 50 basis. Profits are normally calculated typically net of subleasing costs. Profits are rare except in strong markets. Advantages: Rent is generally lower than rent for direct space offered by the landlord. Sublets can often include furniture, telephone systems, and cabling at no extra cost. Disadvantages: Most sublets have fixed terms, i.e., the remaining term of the current tenant s lease. However, some sublessors offer flexibility in the term, especially if they sublet a portion of the space they occupy, with the intention of occupying the sublet space in the future. Subleases are riskier than direct leases because the sublandlord (also called overtenant or sublessor) may default on rent payments, possibly giving the landlord the power to terminate the original lease and cancel the sublease. The master lease, i.e., the lease between the landlord and tenant, often allows the landlord to recapture the space prior to approving the sublease. Option to Expand & Right of First Refusal An option to expand or a right of first refusal may be negotiable, especially for large tenants. A right of first refusal gives the tenant the right to secure additional space that may come available during the term of the lease before it is offered to a third party. Late Delivery by Landlord The lease may specify a delivery date and provide that the landlord must pay a penalty and/or the tenant may terminate the lease if space is not delivered on time and in the condition agreed in the lease. Holdover by Tenant Holding over is when the tenant s lease has expired and the tenant remains in the space or has not met its restoration obligations. The lease may require the tenant to pay a premium holdover rent, such as 125-200% of the base rent during any holdover period, and indemnify the landlord against losses to the landlord due to the holdover. Signage and Naming of Building Exterior signage may be negotiable. Naming the building may be negotiable, especially for large long-term tenants. OFFICE LEASING MARKET Transparency Lease and sales transaction data and other market information are available to tenants through leading brokerage firms like CBRE. Professional real estate providers generally know the deal terms and landlord concessions of recent completed deals, and are willing to share this information with clients they represent. United States of America Page 17 of 309

Building Classification Class A: High-quality buildings with high-quality finishes, state-of-the-art systems, and excellent accessibility. The very best buildings are sometimes called A+ buildings or trophy buildings. Class B: Average quality buildings with average rents. Building finishes are fair to good. Systems are adequate. Class C: Buildings of below-average quality and below-average rents. Information contained herein, including projections, has been obtained from sources believed to be 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 confirm independently its accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of the CBRE Global Chief Economist. United States of America Page 18 of 309

Manhattan What s Typical? General Measurement Escalation Cleaning Electricity Practices are generally the same as in other US cities, except as outlined in this chapter. Real Estate Board of New York method results in high loss factors and low efficiency. Various methods are used; sometimes porter s wage formula which is unique to New York City. Cleaning of premises is included in the rent in Class A buildings. Tenants in Class A buildings typically pay based square feet occupied rather than meter. CBRE Offices Midtown +1 212 984 8000 Downtown +1 212 618 7000 For More Information About CBRE Manhattan http://www.cbre.us/o/newyorkcity/pages/h ome.aspx About CBRE Manhattan Research http://www.cbre.us/o/newyorkcity/pages/ market-reports.aspx For Local Market Reports http://gkc3.cbre.com/search/search.aspx Contact George Relyea First Vice President +1 212 984 7187 george.relyea@cbre.com Manhattan Page 19 of 309

SPACE MEASUREMENT Space Measurement Usable Area: Manhattan landlords use the Real Estate Board of New York (REBNY) method, not the BOMA method, to calculate usable area. Like other methods of measuring the usable area, the REBNY method excludes penetrations such as shafts and exit stairs. However, the REBNY usable area measurements extend to the outside of exterior building walls, and therefore include some un-usable space. The REBNY method can be confusing, because standard restrooms are considered usable space when they are on single-tenant floors, but not when on multi-tenant floors. Rentable Area: Manhattan landlords generally calculate the rentable area by adding a percentage, the add-on factor, to the usable area measured, and so the rentable area cannot be verified by direct measurement. Over the years, Manhattan landlords have repeatedly re-measured their buildings to increase rentable areas, simply by increasing the add-on factor. Add-on factors vary slightly from one building to another. New buildings tend to have slightly higher add-on factors and therefore higher loss factors than older buildings. Efficiency Landlords agents sometimes quote loss factors between the REBNY usable area and the rentable area. Such loss factors are typically at least 25% for full floor tenants, higher for divided floors. Loss factors are usually higher on newer buildings than on older buildings. OCCUPANCY COSTS Rent Rent Quoted: Landlords quote gross rents in U.S. dollars (USD) per rentable square foot per year. Manhattan rents are generally the highest rents in the U.S. Increases in Base Rent: Leases longer than 5 years often include increases in base rent that take place in future years as agreed and as specified in the lease. Rent Payment: The tenant pays the first month s rent at lease or sublease execution, and subsequent rent payments monthly in advance. Free rent: The landlord normally grants free rent to the tenant in the first year of the lease, starting in the second month because the tenant pays the first month s rent on lease execution. Free rent can apply to any month or months during the entire term of the lease, as agreed, and as stipulated in the lease. Manhattan Page 20 of 309

Operating Costs The landlord pays operating costs of the building for the base year. The base year is normally agreed to be the first year of the lease. The tenant pays its proportionate share of increases in operating costs for subsequent years, sometimes with a negotiated maximum, or cap. Common methods that landlords use to recover operating cost increases are outlined below. Methods used in Manhattan and Elsewhere in the US Direct Operating: The tenant pays a proportionate share of operating cost increases. Operating costs are normally defined in the lease, and normally exclude the cost of amortized capital improvements and building management salaries. The landlord normally estimates the operating costs for the ensuing year and averages such costs over a twelve-month period. At the end of each year, the landlord provides an accounting of the actual costs. The landlord credits the tenant for any overages, or invoices the tenant for any underpayments. Tenants with leases that provide for direct operating increases should obtain the right to audit the landlord s financial records. Consumer Price Index (CPI): The tenant s rent adjusts for inflation based on a consumer price index, typically a local index published by the U.S. Department of Labor, Bureau of Labor Statistics. Percentage Increases: In some cases, the landlord pays all operating cost increases, and the tenant pays a fixed percentage increase in base rent, typically 2 3.5% per year. Unique to New York City: Porter s Wage Escalation Formula Some landlords use a porter s wage formula to escalate rent to cover increases in operating costs. This method uses published hourly wage rate increases, negotiated every three years, as part of the Commercial Building Agreement, negotiated by the Realty Advisory Board on Labor Relations in New York City and the union that represents building employees. This agreement establishes minimum wage rates for various categories of building employees in commercial buildings, including a category defined as Other and informally known as porters. Common variations of this method are: Porters Wage Penny-for-Penny without Fringes: For every cent (USD.01) added to the published hourly wage, a cent is added to the per-square-foot rent. Porters Wage Penny-for-Penny with Fringes: Same as above, but the wage used in this calculation includes fringe benefits, which vary from building to building, and generally produces a steeper rent increase rate than when calculated without fringe benefits. Porters Wage 3/4 Penny-for-Penny without Fringes: With this formula, 3/4 of a cent is added to the rental rate for each cent added to the hourly wage. Taxes Real Estate Taxes Tenants typically pay their proportional share of increases in real estate taxes. Commercial Rent Tax Tenants that pay USD 250,000 or more per year in gross rent may be subject to New York City Commercial Rent or Occupancy Tax, based on the rent paid. Exemptions and credits may apply, depending on the rental rate and building location. For details see http://www.nyc.gov/html/dof/html/business/business_tax_rent.shtml. Tenant Improvements Most Class A buildings in Manhattan require union labor, which is significantly more expensive than non-union labor. Tenants, especially small tenants, often reuse some or all of a previous tenant s installation. Tenant improvement ( TI ) costs for Class A or Prime buildings normally range from USD 90 200+ per sq. ft. including construction, furniture, wiring, design fees, etc. Car Parking Most Manhattan office buildings have no parking spaces. Manhattan office occupiers generally commute using an excellent public transportation system of commuter trains, subways, and buses. Others use taxis, which cruise the streets, day and night, looking for riders, and can stop to pick up passengers on almost any street. Those who commute by car face high parking costs and heavy rush-hour traffic. When available in office buildings, parking spaces may be included in rent, or rented separately. Most drivers to Manhattan park in separate parking garages, or occasionally outdoor parking lots that are available throughout Manhattan. Manhattan Page 21 of 309

Other Occupancy Costs Some buildings charge extra for building security. Many office buildings are in Building Improvement Districts (BIDs) which provide, and charge for, extra services, beyond those provided by the municipal government. Landlords normally pass on Building Improvement District (BID) charges to tenants. TRANSACTION COSTS Brokerage Commissions If a transaction takes place, the landlord or sublandlord typically pays a full brokerage commission to the tenant s or subtenant s broker and one-half commission (called an override) to its own broker. Before a lease is executed, the landlord or sublandlord normally requires the tenant s or subtenant s broker to sign a commission agreement. The commission agreement establishes the conditions for payment, including the payment schedule and the commission rates. New Leases and Subleases: A typical full commission is 5% of the first year s rent plus 4% of the second and third year s rents, plus lower percentages for subsequent years. Commission rates vary slightly among landlords and brokerage firms. The landlord or sublandlord sets the rates, which the tenant s broker normally accepts without negotiation. Lease Renewal: Most established landlords pay the tenant s broker a full commission to represent their tenant in negotiations. This reduces the possible incentive for a broker to try to move the tenant to another building. Some landlords pay the tenant s broker a reduced commission for a renewal. The commission rates for renewals are negotiable between the landlord and the tenant s broker. OTHER LEASE PROVISIONS Holdover by Tenant Leases typically require the tenant to pay 2 3 times the rent payable at the end of the lease, and sometimes, monetary damages to a landlord caused by holdover. Signage and Naming of Building Some landlords regulate tenant signs on multi-tenant floors through a signage program. Large tenants can sometimes negotiate naming rights for buildings. OFFICE LEASING MARKET Building Classification Manhattan office buildings tend to be older than buildings elsewhere in the U.S. Many are renovated. Very little first-generation space is available. Virtually all new office buildings in Manhattan are Class A buildings, because the high cost of land and construction makes it uneconomical to develop lower grade office buildings. Class A: Full-service buildings, typically over 200,000 sq. ft. Most Class A buildings were built after World War II. In these buildings, the landlord provides cleaning of the tenant s premises; an attended lobby 24 hours a day, seven days a week; and central air conditioning in warm months during business hours. Some Class A buildings are air conditioned for a half day on Saturdays. A few Class A buildings provide central air conditioning 24 hours a day, seven days a week. Most Class A buildings have high security, including cardkey access, visitor sign-in, and tenant notification before visitors may enter into elevators, etc. Class B: Generally built before World War II, and before central air conditioning became available. Class B buildings typically have package air conditioning units that serve a single tenant. Class B buildings have attended lobbies. Cleaning of the tenant s premises is sometimes included in rent. Class C: Usually small pre-war buildings. Many are converted industrial buildings. Most have lobbies that are attended by a uniformed guard, whose cost is paid by the tenants in addition to the rent. Many have a single passenger elevator and a single service elevator. Cleaning of the tenant s premises is not included in rent. Manhattan Page 22 of 309

Information contained herein, including projections, has been obtained from sources believed to be 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 confirm independently its accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of the CBRE Global Chief Economist. Manhattan Page 23 of 309

Argentina What s Typical? Term Breaks Renewal Rent basis Free rent Escalation Security Fit-out Tenant s broker Right to sublet Transparency Ownership 3 5 years Statutory right with 90 days notice, cannot be waived Negotiable Net 0 2 months typical Rent reviews as agreed 2 months for most tenants Tenant pays Tenant pays Rare High Condominium ownership common CBRE Offices Buenos Aires +54 11 4590 2600 For More Information About CBRE Argentina http://www.cbre.com/buenosaires For Local Market Reports http://gkc3.cbre.com/search/search.aspx Contact Robert Gilmore Area Director LAC +1 305 779 3146 robert.gilmore@cbre.com Argentina Page 24 of 309

LEASE LENGTH Term Three to five years is typical for Class A space, with no minimum lease term. Termination or Break By the Argentinean lease law, the tenant and only the tenant has the option to early terminate the lease. The rules to do so are the following: The tenant can only exercise its option to early terminate the lease agreement after the first 6 months. The tenant must notify its decision to early terminate the agreement with 60 days notice from the date when the lease agreement is to be terminated. As sole compensation for the early termination, the tenant must pay an amount equal to one and a half months rent if the option to terminate was exercised during the first year of agreement, or one month rent if the option to terminate was exercised after the first year of agreement. The right to terminate causes landlords to prefer short leases and causes tenants to re-negotiate their leases on a regular basis. Renewal A tenant s option, including the renewal rent, is negotiable. SPACE MEASUREMENT Space Measurement Net lettable area is measured and quoted in square meters. The net lettable area generally includes carpetable area plus restroom and common areas used exclusive by the tenant. Efficiency A typical ratio of carpetable area to net lettable area in a Class A building in Buenos Aires is about 83%. OCCUPANCY COSTS Rent Rent Quoted: Rent is quoted in U.S. dollars (USD). Operating expenses are quoted in Argentine pesos (ARS). Rent Payable: Rent is payable monthly in advance at the USD exchange rate per ARS. Operating expenses and property taxes are paid monthly in arrears. Free Rent: Landlords generally grant up to two months free rent; none in tight markets. Escalation: The lease typically specifies the basis of the rent review during the lease term, usually an average of three market values provided by established real estate firms. Currently there is no convertibility law that prohibits inflation-based escalations. Normally Included in Rent: (1) Car Parking: typically one space per 100 sqm in Buenos Aires; sometimes additional spaces in the suburbs. (2) Repairs and replacements to building systems. (3) Capital improvements. (4) Building Insurance. Argentina Page 25 of 309

Service Charges In a Class A building, the tenant typically pays a service charge of USD 5.00/sqm/month plus property tax. Items normally covered in the service charges are: Maintenance, repairs and cleaning of common areas. Building management and staff, including building security staff. Utilities for common areas. Ordinary expenses, such as operation and maintenance of the building and common areas. Structural repairs to the tenant s premises. Insurance for premises and its contents. Water is included in the service charges. Taxes VAT: The tenant pays 21% VAT on all rents, service charges, construction costs, furniture, and furnishings. Property taxes: The tenant pays property taxes, in addition to service charges. The property tax varies from USD 0.50 2.00/sqm/month in 2010 in Buenos Aires, and may be slightly lower elsewhere. Utilities Tenants contract and pay electricity directly to the utility company, based on actual metered consumption. Water is included in the service charges. Fit-Out The landlord normally provides suspended ceilings, ceiling lighting and common area restrooms. The tenant normally pays for all other fit-out costs. The landlord approves the tenant s plans and specifications. Fit-out costs for Class A or Prime buildings in major cities normally range from USD 250 500 per sqm including construction, furniture, wiring, design fees, etc. Restoration Restoration of premises to its original condition upon lease termination is usually not required. Tenants tend to lease properties in as-is condition, and return them in as-is condition. Security Deposits and Guarantees Upon execution of a lease contract, the tenant pays two months rent as a security deposit. With very few exceptions, the tenant pays this regardless of the tenant s size or origin. The landlord repays it upon lease expiration, usually without interest. Argentina Page 26 of 309

TRANSACTION COSTS Agency Fees New Lease When the tenant is not represented by a broker, the landlord pays its broker 5% the total value of the lease contract for the whole duration of the contract for the first 5 years, and if the lease is longer (10 years maximum by law) 3% for years thereafter. When the tenant is represented by a broker, the tenant pays its broker 50% and pays the listing broker 50% of the fee. Sublease Sublease transactions are almost non-existent and similar criteria applies as in new leases, as follows: When the subtenant is not represented by a broker, the sublandlord pays its broker 5% the total value of the lease contract for the whole duration of the contract for the first 5 years, and if the lease is longer (10 years maximum by law) 3% for years thereafter. When the subtenant tenant is represented, the subtenant pays the subtenant s broker 50% and pays the sublandlord s broker 50% of the fee. Lease Renewal The tenant pays its broker 2.5% of total rent for renewed term. Lease Termination By the Argentinean lease law, the tenant and only the tenant has the option to early terminate the lease. Agency fees do not apply to lease terminations. Taxes on Transaction Fees All transaction fees are subject to VAT, general sales tax or similar, as applicable. VAT at 21% is additional to all agency fees. The party that pays the fees pays the additional VAT. The party that receives the fees then renders the tax to the local government. Other Transaction Costs Both parties split a one-time stamp duty of 0.5% of the total value of the lease. OTHER LEASE PROVISIONS Laws and Practices By law, a tenant is in default after only two months of non-payment. The eviction process can take six months or more, but is usually not a problem because of the lease termination rights. A non-binding letter of intent between the tenant and the landlord precedes a final contract. Standard Lease No standard leases are used. Landlords provide the basic lease language which is negotiable. Right to Sublet Subletting is rare, and the lease contract seldom covers it. It is occasionally possible to negotiate a right to sublease, subject to the landlord s prior written consent, and usually only to related parties. It makes more sense to terminate than to sublease, because of the tenant s right to terminate in Argentina. Option to Expand & Right of First Refusal Late Delivery by Landlord An option to expand is negotiable. A right of first refusal is rarely granted. Contracts rarely provide for this in advance in contract, unless timing is of the essence. Holdover by Tenant Holdover is rare, and payment is negotiable if holdover occurs; therefore, the lease contract should address this. Argentina Page 27 of 309

Signage and Naming of Building The right to name a building is negotiable in some buildings and can cost as much as the equivalent of the rental of the entire highest floor. OFFICE LEASING MARKET Market Practices About 50% of Class A buildings in Buenos Aires are condominiums. This has little effect on leasing, because most condominium ownership is by investors, not occupiers. Ownership by domestic or foreign office occupiers is rare. Transparency Comparables that identify tenants, square meters, rents and incentives for recent transactions are generally available for Buenos Aires. Building Classification Class A buildings generally have the latest standards of construction, raised floor, HVAC, safety and fire alarms, floor plates larger than 400 sqm, and are in prime locations. Class B buildings are older and do not comply with some requirements outlined above. Class C buildings are lesser-quality buildings. Information contained herein, including projections, has been obtained from sources believed to be 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 confirm independently its accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of the CBRE Global Chief Economist. Argentina Page 28 of 309

Brazil What s Typical? Term 1 5 years; long leases rare Breaks Tenant has legal right to break Renewals Tenant has legal right to renew Rent basis Net Free rent 1 3 mo for 5-year lease typical Escalation Indexed annually Security 1/2 1 month s rent Fit-out Tenant pays Tenant s broker Tenant pays Right to sublet Rare Transparency High Ownership Condominium ownership common Crime High; tenants may need extra security CBRE Offices Rio de Janerio +55 21 2543 4345 São Paulo +55 11 5185 4688 São Paulo +55 11 5185 7964 For More Information About CBRE Brazil http://www.cbre.com.br/ For Local Market Reports http://gkc3.cbre.com/search/search.aspx Contact Davi R. Lorenzo Consultant, Global Corporate Services +55 11 5185 4688 davi.lorenzo@cbre.com.br Leandro Carmo Consultant, Research Department +55 11 5185 4688 leandro.carmo@cbre.com.br Brazil Page 29 of 309

LEASE LENGTH Term The lease term can be from one to ten years. Five years is typical. The law does not specify how long a lease contract has to be. For temporary solutions, companies usually go to virtual offices solution providers. Termination or Break Brazil s legislation gives the tenants the right to terminate a lease agreement whenever necessary, but allows parties to negotiate both the length of the early notice period and the penalties payable if the tenant terminates early. The law provides this formula for calculating termination penalties: Months Rent Payable = Months Rent Penalty In Contract X Months Remaining / Months In Contract Term For example, if the penalty fee in the contract is four months, and 30 months remain, and the contract term is 60 months: Months Rent Payable= 4 x 30/60 = 2 Renewal The law gives these tenants with a lease of 5 years or more the following rights: To renew for the same term as the initial term, if the tenant has met its lease obligations. To renew more than once, so leases of ten years or longer are unusual. The law also states that to have the right to renew, three conditions must be satisfied: Lease contracted signed and registered the contract at the municipality A minimum of 5 years lease term. In case of retail, tenants must have engaged in the same activity for a 3 year minimum. Tenants with 3- or 4-year leases, tenants do not have the right to renew granted by law, but the parties can negotiate the renewal with the same initial term (3 or 4 years). Other rights to renew are negotiable. By law, to renew a lease, the tenant must inform the landlord at least 180 days before lease termination. The landlord and tenant can, although rarely do, agree to change this notice period, because the 180 days would still be recognized in court. SPACE MEASUREMENT Space Measurement Landlords today normally quote a rentable area rather than usable area, especially for Class A and A+ spaces. BOMA guidelines are becoming a standard for A+ office buildings. Efficiency The ratio of carpetable area to the quoted rentable area varies. Brazil Page 30 of 309

OCCUPANCY COSTS Rent Rent Quoted: Rent is always quoted in Brazilian Reais (BRL) per month. Rent Payable: The tenant pays for rent, services, utilities, and taxes separately. Rent is payable monthly in arrears. For example, usually, the tenant pays January rent on or around February 5. Free Rent: São Paulo and Rio de Janeiro tend to have the same rent-free concessions: 1 3 months is typical for a 5-year deal. Larger leases may include longer rent-free periods. Rent Escalation: Rent is usually escalated based on a local inflation index, known as IGPM (Indice Geral de Preços valor de Mercado). Other formulas are sometimes used. Rent increases based on foreign indexes are prohibited. Rents can also only be increased on annual bases. Rent Review: By statute, either party has a right to a review of base rent and adjustment to market levels every three years. General Maintenance Costs The tenant pays general maintenance costs; i.e., operating expenses, which range from BRL 12 14 per sqm per month in So Paulo and Rio de Janeiro. General maintenance costs include: Cleaning, operating and maintenance costs for common areas. Security: High crime rates, especially in large cities such as So Paulo, make good security systems important. The building, not the tenant, normally provides security measures, although some tenants hire additional security guards. Taxes The tenant pays IPTU rates (property tax) directly to the municipality. The standard rate is 1% per year of the property value for tax purposes assessed by the municipality, and varies currently from BRL 2 6/sqm/mo. Utilities The tenant pays for electrical services and other utilities directly to the servicing company. Fit-Out Landlord Work: In Rio de Janeiro and São Paulo, landlords usually deliver premises with modular ceiling, lighting, and air conditioning equipment including ducts, except for triple A office buildings that are normally delivered core & shell. Tenant Work: The tenant normally performs and pays for all further improvements, including additional restrooms, subject to landlord approval. A condominium may restrict working hours. Brazilian law limits hours for noise/heavy work in condominiums during workdays from 7:00 am to 6:00 pm, and on the weekend and holidays from 7:00 am to 8:00 pm. Fit-out Costs: Fit-out costs for Class A or Prime buildings in major cities normally range from BRL 1300 2800 per square meter, including construction, furniture, wiring, design fees, etc. Fit-out costs depreciate over the lease term and are included as deductible expenses against taxable income. Restoration The lease usually specifies that the tenant must return the property to its original condition upon vacating the space, unless the landlord accepts it in its current condition. Security Deposits and Guarantees A bank guarantee is the most common type of security deposit in Brazil. The average cost is 4 8% of the annual rental value of the lease contract. The tenant must renew this every year. Car Parking Some car parking is usually included in the rent. Other Occupancy Costs Cleaning: The tenant contracts this separately with no participation from the landlord. Brazil Page 31 of 309

TRANSACTION COSTS Agency Fees New Lease When an agent (or broker) represents the tenant, the tenant pays a fee of 1½ 3 months rent, excluding discounts and free rent periods, for large transactions. Fees for smaller assignments tend to have higher percentage fees. When an agent (or broker) represents the landlord, the landlord typically pays a fee as outlined above. Sublease No market practice exists because subleasing is rare, due to low early termination penalties. Taxes on Agency Fees All transaction fees are subject to applicable taxes (14.25%). The party that pays the fee pays the tax in addition to the fee. The party that receives the fee forwards the tax to the taxing authorities. Legal Fees The tenant and the landlord pay their own legal costs, typically based on an hourly rate. Other Transaction Costs Registration Fee: A one-time lease registration fee is necessary for a lease to be binding. Landlords sometimes use the time between execution and registration to gain concessions after lease execution. No other significant fees apply. OTHER LEASE PROVISIONS Laws and Practices Brazilian tenancy law 8.245/91 regulates leasing rules and contracts, and is the only law that specifically regulates the lease contracts. Leases must be written in Portuguese and specified in Brazilian Real. Standard Lease Brazilian lease laws are extremely comprehensive in the country. As a result, most commercial leases are standardized. Right to Sublet The lease normally requires that the tenant obtain written consent from the landlord. In São Paulo, the sublease base rent cannot, by law, exceed the going lease rate. In Rio, if the subtenancy rent is greater than the base rent, the tenant (sublandlord) must pay the difference to the landlord. Option to Expand & Right of First Refusal In a multi-tenanted building, a right of first refusal to lease space is negotiable when the same landlord owns other spaces in the building. When a tenant occupies an entire property and the landlord finds a buyer, the law gives the tenant the right of first refusal to match offers by third parties, if the tenant had registered its lease with the Real Estate Registry at least six months before the date the landlord began marketing the property. Late Delivery by Landlord Penalties depend on the terms as agreed in the lease contract. For pre-leases, i.e., buildings under construction, the parties normally negotiate late delivery penalties, which may vary from 1 4 days rent for every day of delay. Parties may also negotiate a tenant s right to terminate after 6 12 months of delay, with or without compensation from the landlord. Holdover by Tenant Once the lease contract has expired, the landlord may terminate the lease by prior notice to the tenant of at least 30 days. If the tenant does not leave the premises after this period, the landlord can file an eviction in court. Brazil Page 32 of 309

Signage and Naming of Building Signage is usually permitted in hall and floor entrances. Large tenants can negotiate external signage and naming of buildings, subject to some restrictions from the local legislation. In São Paulo, the law regulates the dimension of outdoor signage according to location. Real estate companies may advertise with signs not larger than one square meter. No similar regulation exists in other cities. OFFICE LEASING MARKET Market Practices Condominium ownership is very common in São Paulo and Rio de Janeiro. More than 95% of the occupiers are tenants, not owners. Large tenants often have separate leases with multiple owners in a single building. Transparency For São Paulo and Rio de Janeiro, comparables which identify tenants, square meters, rents, and incentives are generally available for recent transactions, which CBRE updates monthly. For Belo Horizonte, Brasilia, Curitiba, and Porto Alegre, and other major cities, CBRE updates similar data annually. Building Classification Few buildings are now classified, due to the relatively opaque market; however CBRE is expanding the number of buildings it classifies, and plans to create a publication explaining the classification system. Buildings are generally classified as either AAA, A, B, or C based on criteria such as central air conditioning, floor area, etc. Each specification has a different point count, and the total determines whether a building is AAA, A, B or C. AAA (or A+) buildings have, at minimum, central air conditioning, clear height of 2.80 meters or above, and floor area of above 800 sqm. Information contained herein, including projections, has been obtained from sources believed to be 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 confirm independently its accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of the CBRE Global Chief Economist. Brazil Page 33 of 309

Chile What s Typical? Term Any length, 3-5 years typical Breaks Negotiable Renewals Negotiable Rent Net Free rent Occasionally 1 2 months Escalation Indexed via UF (artificial currency) Security 1 2 months typical Fit-out Tenant pays Tenant broker Tenant pays Right to sublet Rarely allowed Transparency High Ownership Condominium ownership common CBRE Offices Santiago +562 562 2600 For More Information About CBRE Chile http://www.cbre.cl/en/ About CBRE Chile Research For Local Market Reports http://gkc3.cbre.com/search/search.aspx Contact Paula Rodríguez Manager Marketing and Research + 562 562 2622 paula.rodriguez@cbre.com Chile Page 34 of 309

LEASE LENGTH Term 3 5 years is common. Termination or Break Break options are negotiable. Renewal Negotiable SPACE MEASUREMENT Space Measurement The rentable area normally measures from the outside of the exterior wall of the building or the center of shared walls within the building. It excludes common areas, access halls, vertical circulation, and shafts. Efficiency A typical ratio of carpetable area to rentable area in a Class A building in Santiago is 85%. OCCUPANCY COSTS Rent Currency: Parties normally quote rent in Unidad de Fomento (UF), an artificial currency that adjusts daily to inflation, based on the change in the CPI from the previous month, so that its value remains constant. Most real estate transactions: i.e., lease contracts, leasebacks and mortgage loans, use UFs. Parties rarely quote rent in USD, as this would be disadvantageous to a tenant if the Chilean economy fails. Rent Quoted Net: The landlord pays for structural repairs, property tax, and building insurance. The tenant pays for rent, service charges, maintenance expenses (i.e., cleaning and minor repairs within the tenant s space) and common area charges (also called operating costs, i.e., maintenance and repair of common areas outside of the tenant space). Escalation: Because the UF system adjusts to inflation, rents are automatically indexed. Revisions to market rent are also very rare, except with long-term leases, which may provide reversion to market rent or fixed percentage increases. Rent Payable: The tenant pays rent in Chilean pesos (CLP), monthly in advance, at the then-current rate of UF. Free Rent: Free rent is not typical, although one to two months (rent abatements) is sometimes negotiable. Operating Costs The tenant pays a pro rata share of common area charges, which covers building staffing, building security, and building areas outside the tenant s premises, such as elevators, hall, access, corridors, gardens, etc. For a Class A building in Santiago, the average common area charge is USD 4.2/sqm/month, including electrical and water usage of common areas. Taxes VAT sometimes applies to rent, depending on the landlord s preferences and on negotiations with the tenant. Generally, VAT is not applied to raw space, but is more applied to furnished space. VAT is usually recoverable. The landlord pays the property tax. Utilities The term service charges is used for electricity, water and cleaning inside the tenant s premises that the tenant pays separately and directly to each provider. The tenant pays the electric and water companies directly, based on a meter reading. Chile Page 35 of 309

Tenant Improvements Landlord Work: The landlord usually delivers an empty shell and sometimes may contribute with some improvements, such as suspended ceilings with basic ceiling lighting, basic restrooms, and basic carpeting. Tenant Work: The tenant usually performs and pays for all other tenant improvements. The tenant normally uses its own architects, engineers, and contractors, with prior landlord approval. Landlords rarely charge fees to supervise or to review design documents. Tenant Improvements Costs: Fit-out costs for Class A or Prime buildings in major cities normally range from USD 700 1000 per sqm including construction, furniture, wiring, design fees, etc. VAT (19%) applies to fitout costs. Restoration Parties negotiate restoration (i.e., reinstatement) and address it in the lease. Typically, fitted-out offices must be restored to handover condition, but landlords usually allow improvements to open plan layouts to remain when they benefit the landlord. Security Deposits and Guarantees Top multinational tenants typically deposit one month s rent. Smaller companies may deposit two months rent. Security deposits are lower than in many other countries, because landlords do not generally do fit-outs or provide other large incentives. Car Parking Tenants may negotiate car parking spaces in rent, but normally pay for them separately, particularly if the tenant takes more than its allocation. Other Occupancy Costs Tenants make their own arrangements to have the premises cleaned. TRANSACTION COSTS Agency Fees Large companies tend to engage large brokerage firms like CBRE to represent them as tenants. Commonly, large brokerage firms represent both sides, but it is rare for a single person to represent both sides. Landlords normally work with agents but without exclusiveness and accept offers from any agent. New Lease and Sublease: Total agency fees are 4% of the total value of the lease contract with a one-month rent minimum. When the landlord and the tenant are represented by different brokers, the landlord pays its broker 2% and tenant pays its broker 2%. Occasionally a landlord or developer pays the total 4% fee to the broker or brokers, to save the tenant money, as an incentive to close the deal. VAT is payable on brokerage fees and is normally recoverable. Purchases: Typical fee is 4% of the purchase price and normally shared between buyer and seller. Fees are divided as outlined above. Legal Fees Companies usually use their own lawyers or an external attorney to review and negotiate the legal terms of a lease. The tenant pays legal fees when it uses an outside attorney. Other Transaction Costs Notary fees for signatures/validation are around 0.1% of the contract value. Notarization is optional in leasing transactions, and mandatory for sales transactions. Legalized contracts provide greater protection. Typically, large transactions are notarized. Registration is recommended for leases, and is required for sales contracts. If a tenant registers a lease contract, the obligation continues for the future owner. If a tenant fails to register a lease, the new owner could choose to maintain the contract or not. In Santiago, the registration fee is 0.2% of the contract value. Chile Page 36 of 309

OTHER LEASE PROVISIONS Laws and Practices All rules that determine the rights and obligations of tenants are included in the Civil Code (general dispositions) and in the Special Law of Leasing, No.19.866, last updated in March 2003. Licensing does not exist for real estate brokers or agents. Many agents handle residential and small office assignments. Negotiating It is common to negotiate the rent. The difference between asking and closing (taking) rent is typically about 10%. Standard Lease Lease contracts are similar to one another, but no standard agreement or lease clauses exist. Right to Sublet The right to sublet or assign is negotiable, but most contracts do not allow subletting. When allowed, the tenant, as sublandlord, normally must guarantee the subtenant s rental payments and the landlord must consent to the sublease. Option to Expand & Right of First Refusal A first refusal on additional space that becomes available is usually negotiable. This can be difficult to accomplish because most buildings are condominiums, and when additional space belongs to another landlord, a separate lease agreement is needed. Late Delivery by Landlord Rarely a penalty is negotiated and covered in a lease. A reasonable penalty could be 10% of the monthly rent for each day late. Holdover by Tenant Penalties for holdover after termination of the contract are negotiable, and are included in the lease contract. Typical penalties are around 10% of the monthly rent for every day that the tenant holds over, which are payable in addition to the regular rent. The eviction process is lengthy. Signage and Naming of Building Occupiers are permitted to place names in lobby directories at no cost. Exterior signage and naming of a building may be negotiable. OFFICE LEASING MARKET Market Practices Condominium ownership is common. Developers of new condominium buildings commonly secure multi-floor tenants with long-term leases, and then sell floors individually to different investors. Since 2007, a few international investors have bought and owned entire buildings (usually they buy Class A buildings, though occasionally class B+ buildings). However, owner-occupiers have recently become rarer, mainly due to insufficient office space for sale. Therefore, occupiers who want to own must build or buy a completed project. Many international occupants are too small to fully occupy a Class A building, so international occupiers are starting to move towards owning class B+ areas. With condominium ownership, brokers face a difficult challenge to find office space for clients that need more than one floor or have special needs. Two floors can involve two landlords, two contracts and two agents. Condominium ownership requires a committee to agree on decisions about improvements, building image, building rules, etc. Condominium owners do not commonly coordinate their leasing by using a single management company; however a good single property management service (for common areas administration) is important for tenants. Transparency For Santiago, comparables that identify tenants, areas leased, rents, and incentives, are available for some recent transactions. Chile Page 37 of 309

Building Classification Class A Buildings: Open plan, no tenants with spaces smaller than 300 sqm, no more than one or two occupiers per floor, premium location and premium occupiers, high standards of security (vigilance and prevention systems), centrally operated air conditioning, high-tech elevators, sprinklers, curtain walls minimum distance between floor and ceiling of 2.60 m. Some new Class A buildings have LEED certification. Three superior buildings in Santiago are considered A+ buildings. Class B Buildings: Generally, these are smaller buildings, with 50 100 sqm tenants, without sprinklers or sophisticated security systems. Most of them have air conditioner systems. Some new Class B buildings have LEED certification. Unclassified: These are buildings of quality inferior to Class B. Information contained herein, including projections, has been obtained from sources believed to be 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 confirm independently its accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of the CBRE Global Chief Economist. Chile Page 38 of 309

Colombia What s Typical? Term Breaks Renewals Rent basis Free rent Escalation Security Security Fit-out Tenant s broker Right to sublet Transparency Ownership Notary Efficiency Any length, 3 5 years typical Negotiable Negotiable Net 3 months typical Indexed annually Negotiable 1 3 mo typical Tenant pays Landlord or tenant pays Negotiable Limited Most office buildings are condominiums Leases must be notarized High; rentable area = usable area Colombia For More Information For Local Market Reports http://gkc3.cbre.com/search/search.aspx Contact Robert Gilmore Area Director, LAC +1 305 779 3146 robert.gilmore@cbre.com Page 39 of 309

LEASE LENGTH Term Lease terms can be of any length, but are generally at least three years for new space; five years for corporate tenants. Termination or Break A termination option is negotiable, and likely to incur a penalty. Renewal A right to renew is negotiable, subject to rent review (i.e., adjustment to market). SPACE MEASUREMENT Space Measurement Rentable Area equals Usable Area. Floor areas measure, as in condominium business, to mid-wall of adjacent suites. Internal partitions are included in rentable floor space. Shared hallways may or may not be included in the rental charge. Efficiency The rentable and usable areas are equal for all practical purposes. OCCUPANCY COSTS Rent Rent Quoted: The currency is the Colombian peso (COP). Rent is generally quoted and contracted in COP/sqm/month and is paid monthly in advance. Free Rent: In most new buildings, a free rent period of up to three months allows time for build-out. In second-generation space, less build-out work is usually required, and therefore the free rent period is shorter. Rent Escalation: Rates are subject to annual review, per local cost of living index. Common Area Maintenance Leases are on a net basis. The tenant pays common area maintenance (CAM) charges, typically equivalent to USD 4.00/sqm/month for AAA buildings, either as a condominium association fee, or as a prorated allocation of total building costs. Taxes The landlord typically pays property taxes. Tenants rarely pay for increases in property taxes. Utilities The tenant contracts for and pays each supplier for cleaning, utilities, and insurance. Air conditioning charges are extra when available, but mild temperatures in Bogotá require minimal air conditioning. Most buildings, including the best buildings in the market, do not have HVAC systems. Tenant Improvements The landlord fully furnishes the common areas only. The tenant is usually responsible for all improvements, although the landlord sometimes participates. Fit-out costs for Class A or Prime buildings in major cities normally range from USD 200 300/sqm including construction, furniture, wiring, design fees, etc. Restoration A tenant must restore the premises to its original condition, although landlords generally accept it as built. Colombia Page 40 of 309

Security Deposits and Guarantees A typical security deposit is one to three months gross rent, depending on the landlord s assessment of the tenant s creditworthiness. Sometimes the landlord asks for a bank guarantee, for a letter of guarantee from the parent company, or for an insurance policy. Other Occupancy Costs Building security is included in CAM for multi-tenanted buildings. TRANSACTION COSTS Agency Fees Normally, the landlord pays agency fees, although tenants are increasingly paying to be represented. All transaction fees are subject to VAT, general sales tax or something similar. New Lease: The agency fee for a one-year lease is one month s rent. For leases longer than one year, a typical agency fee is 5% of the total value of the lease contract for the first five years, 3% for years thereafter. Co-brokerage (i.e., landlord and tenant represented by different brokers) is a normal practice, and the split is 50 50. Clients represented by international firms are very likely to pay the tenant s broker fees; however, tenants never pay the landlord s broker. Sublease: 5% of total lease value. The sublessor pays a fee to the procuring agent (represented or not) and fees are divided by co-brokers, when applicable, on a 50 50 basis. Lease Renewal: The tenant pays 4% of the total rent for the renewed term to the tenant s broker. Lease Termination: The tenant pays 20% of savings, no less than one month of current lease to the tenant s broker. Legal Fees Each party pays its legal counsel. Other Transaction Costs Registration: Typically, leases are not registered, although registration is possible at a cost of 1.7% of the lease value. The lease value is the entire amount of the rent to the end of the term. Tenants or landlords may register leases to better ascertain rights in the event of a dispute. Notarization: Leases may be notarized at 1.5% of the lease value. Tenants or landlords may notarize leases to protect rights in the event of a dispute. OTHER LEASE PROVISIONS Laws and Practices The Colombian legal system is based on the French legal system. The Civil Code and the Commerce Code contain standard terms and conditions for real estate lease agreements that all parties must conform to. Standard Lease Standard leases are not used in Colombia. Right to Sublet Negotiable. Option to Expand & Right of First Refusal Late Delivery by Landlord Negotiable. Some leases include a penalty clause for late delivery. Colombia Page 41 of 309

Holdover by Tenant Holdover by tenant is not negotiable and not addressed in the lease. If the tenant holds over, the law allows the landlord to settle a demand in a court of law and to ask for compensation. Signage and Naming of Building Negotiable and addressed in the lease. OFFICE LEASING MARKET Market Practices Condominium ownership is the dominant form of ownership in Bogotá and other major cities. Occupiers generally lease rather than own. Transparency A clear set of rules and customs exists, and real estate markets in Colombia, especially Bogotá, are more transparent than elsewhere in Latin America. However, comparables that identify tenants, areas and rents for recent transactions, are not generally available. Building Classification Class AAA Buildings: Often prominent buildings in key locations with good accessibility. High-quality of finishes, use of expensive materials. State-of-the-art technical equipment (i.e., high speed elevators). Open plan lay-out, large areas per level (1,000 sqm minimum), 2.6 m minimum usable height per level, suspended ceilings, individually controllable HVAC, fiber optic cabling. Sufficient parking (minimum one space per 50 sqm). CCTV, 24-hour security, sprinklers in common areas. Often reduced running costs. Class A Buildings: Lay-out, technical and parking requirements same as AAA. Rarely landmark buildings, but often well-located with good access. Quality of finishes and technical equipment are good, but not state-ofthe-art. Class A buildings can be refurbished or technically upgraded older buildings. Modern out-of-town technical buildings (i.e., buildings used for call centers and service centers) can often be classified as Class A buildings. Class B Buildings: Many are older than 10 years, with low to average quality of finishes. Information contained herein, including projections, has been obtained from sources believed to be 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 confirm independently its accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of the CBRE Global Chief Economist. Colombia Page 42 of 309

Mexico What s Typical? Term 3 10 yrs typical, 20 yrs maximum Breaks Negotiable, usually with penalty Renewals Common with USD Rare MXN Rent basis Net, sometimes in USD Free rent 3 4 months for fit-out Escalation Indexed to Mexican or US CPI with cap Security 2 mo + bond or corporate guarantee Fit-out Tenant usually pays Tenant s broker Tenant pays Right to sublet Usually negotiable Transparency High Language Leases can be in Spanish or English Broker licensing Not required CBRE Offices Mexico City +52 55 5284 0000 Guadalajara +52 33 4160 6110 Monterrey +52 81 8363 1822 For More Information About CBRE Mexico http://www.cbre.com.mx/index.php?i=en g For Local Market Reports http://gkc3.cbre.com/search/search.aspx Contact Yadira Torres-Romero Manager of Market Research +52 55 5284 0000 yadira.romero@cbre.com Mexico Page 43 of 309

LEASE LENGTH Term Leases generally run from 3 5 years for small spaces; 5 10 years for larger spaces. Leases are often shorter in second-generation space. Generally, Mexican legislation permits leases up to 20 years. Termination or Break Early termination (break options) can sometimes be negotiated and included in the lease contract, generally with a penalty. Renewal Renewal rights are common when rent is denominated in U.S. Dollars (USD), but rare when rent is denominated in Mexican pesos (MXN). SPACE MEASUREMENT Space Measurement Rentable area is measured in square meters. Landlords typically quote rentable square meters according to the BOMA measurement system. Efficiency A typical ratio of BOMA usable area to BOMA rentable area in Class A/A+ buildings in Mexico City is 86 90%. OCCUPANCY COSTS Rent Rent Quoted: Rent is quoted on a net basis per square meter per month, either in U.S. dollars (USD) or in Mexican Pesos (MXN). Rent Payable: The tenant pays rent monthly in advance, usually in USD, sometimes in MXN. If the lease is quoted in USD, tenant can pay in MXN at the exchange rate at the time of payment. The tenant pays VAT, called I.V.A. (Impuesto al Valor Agregado) in Mexico. I.V.A. is 16% of the rent. Grace Period: Up to three to four months grace period for fit-out is common. The grace period generally starts at the signing date. Landlords rarely give free rent beyond the grace period, except in competitive transactions, a landlord will give additional concessions, especially with large and credit-worthy tenants. Rent Escalation: Peso-denominated rent adjusts annually by 100% of the official General Price Index. USDdenominated rent adjusts annually by U.S. CPI, usually with caps. Property tax and building insurance: These are included in the rent. Operating Costs A typical common area maintenance fee is about 10% of the rental rate. Operating expenses for Class A space vary from USD 3 4/sqm/month. Building security is included in maintenance fees, although bank branches, money-handling businesses, jewellers, and prominent individuals sometimes pay for extra security. Mexico Page 44 of 309

Utilities The tenant pays for telephone and electricity. Electrical Power: In office buildings, electricity is generally delivered to floors at 110 120 volts; two phase, 60 80 watts/sqm is typical in modern buildings. In older buildings, 30 40 watts/sqm is typical. Tenants that need 220 volts obtain permission to install extra wiring. 440 volts is rare in office buildings. In Mexico City, CFE provides electricity, and the tenant pays the CFE directly. CFE calculates cost and time for connection after the tenant submits electrical one-line diagrams and a request of budget. Connection time varies widely depending on CFE s installed capacity, and usually takes two months from submittal of a service request. Modern buildings usually have adequate ready-to-go power for temporary (provisional) service, which takes about four days to connect Tenant Improvements Landlord Work: The landlord delivers space in any of the following conditions: (1) Most new buildings are delivered in obra gris (shell) condition, with only service and common areas fully constructed. (2) Secondgeneration space is normally delivered as-is. (3) In soft markets, landlords deliver space with up to a full landlord-paid fit-out. The landlord must provide a washroom area on every floor: typically one for men and one for women, depending on floor size and other factors. The washroom generally adjoins an elevator bank or other common areas. Private washrooms for individuals located within net leasable areas are considered tenant improvements. Class A/A+ buildings typically have several columns with plumbing usable for private washrooms. Tenant Work: The tenant is usually responsible for fit-out, including suspended ceilings and ceiling lighting. The landlord normally allows the tenant to select the contractor, sometimes subject to landlord approval. Landlords normally charge no fee to review drawings and specifications, or for supervision. Landlords usually restrict work involving utilities, floor loading, and the exterior appearance of buildings. A/A+ tenant typically may not change windows or install illuminated signs visible from outside. Tenant Improvements Costs: Costs for Class A/A+ or Prime buildings in major cities normally range from USD 450 600 per square meter, including construction, wiring, design fees, etc. Furniture is additional. Restoration Tenants normally need not remove improvements when a tenant vacates, except for special construction, such as internal stairs. The lease normally specifies what must be removed. Security Deposits and Guarantees Typically the tenant provides on signing: a two-month deposit, and the first month s rent, and a corporate letter or bond to guarantee annual payment for a year, to be renewed annually. Car Parking Most new buildings in Mexico City and Monterrey offer at least one parking space per 25 or 30 sqm of rentable area, generally included in the rent. Additional parking spaces typically rent for approximately USD 100 per month. Other Occupancy Costs Tenants insure their premises separately. Mexico Page 45 of 309

TRANSACTION COSTS Brokerage Commissions The landlord normally pays all transaction fees, including VAT, general sales tax, or similar tax. New Lease and Sublease: The landlord pays 5% percent of the total value of the lease contract for the first five years, 2.5% for years thereafter up to 10 years. This is the total commission, which the landlord always pays directly to the landlord s representative broker. If another firm or broker is involved, this 5% is shared between brokers, as negotiated between brokers. Lease Renewal: Negotiable and typically 5% of the total rent for renewed term, but depending on market conditions, can be a half commission or paid by the tenant. Lease Termination: The tenant pays a negotiable commission or fee. Purchase and Sale: The basic (i.e., market) fee is 5% of the sale price, adjusted according to the size of the transaction. Legal Fees Legal fees vary according to the amount of work the lawyer has to do which depends on the specifics of the lease. Each party is responsible for its own legal service providers. Other Transaction Costs Leases must be registered with government authorities. Either the landlord or tenant pays for registration. OTHER LEASE PROVISIONS Laws and Practices Mexico has increasingly adopted U.S. business practices, so it is common to see U.S. formatted contracts, agreements and business structures and style, which has facilitated entry of U.S. investors. Leases can be in English. An authorized translator must translate an English-language lease into Spanish before the lease can be registered with government authorities. Double-column documents with leases formatted to include both languages on the same document are common. These invariably include a clause that specifies the language (almost always Spanish) that will prevail in any litigation. Standard Lease Landlords and tenants use their own lease forms. Right to Sublet The tenant usually negotiates a right to sublet or assign with the landlord s consent. Some leases prohibit subleasing, while others do not address it. Option to Expand & Right of First Refusal The option to expand is typically available if a building has free space. It is negotiated case by case, and if agreed, is included in the lease agreement. The parties can add a clause specifying that rent will be at market rate. A right of first refusal is common. Standard first rights may be in a clause that gives the tenant 30 60 days to exercise the right if the landlord receives a lease offer from a third party. Late Delivery by Landlord Tenants customarily request a bail bond for late delivery of premises from the building developer or from the tenant improvements contractor. This bail bond provides for expenses for an alternative temporary location. Holdover by Tenant Most leases provide that a tenant pays during the holdover period, 200 300% of rent payable immediately prior to lease expiration. The landlord typically deducts this rent from the security deposit. Signage and Naming of Building A tenant that leases at least 50% of a new building can usually negotiate with the owner for signage on the building during occupancy. No laws limit signage or naming of buildings, not even in historic zones (propiedades protegidas)or areas under government protection (catalogadas por el gobierno). Mexico Page 46 of 309

Other Lease Provisions Early termination is negotiable OFFICE LEASING MARKET Market Practices Brokers need not be licensed in Mexico, so the quality of brokers varies greatly. Transparency Comparables, which identify tenants, square meters, and rents, are generally available for recent transactions in Mexico City. Building Classification Grade A+ Buildings: The best, ultramodern landmark buildings, with the largest and most efficient floor plates, best building control systems, and best architecture. Most were built since 2002 when standards and building quality in Mexico began to rise dramatically. Grade A Buildings: These were generally built from 1996 to 2000, with the technology available then, typically with fiber optics, and with extra capacity available from telephone vendors. Floor loading normally supports one person per 10 sqm with furniture and filing cabinets. Grades B and C Buildings: These have more outdated designs, efficiencies and building systems. Information contained herein, including projections, has been obtained from sources believed to be 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 confirm independently its accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of the CBRE Global Chief Economist. Mexico Page 47 of 309

Panama What s Typical? Term Any length, 3 5 yrs typical Breaks Negotiable Renewals Negotiable Rent Net Escalation Not fixed, or 3 5%% after 2nd year Free rent Up to 3 months for fit-out. Usually 30 days for build-out of tenant improvements. Security 1 month by law, more if landlord delivers space finished or turn-key. Fit-out Tenant pays Tenant s broker Landlord normally pays Right to sublet Rare but negotiable Transparency Limited Ownership Most office buildings are condominiums. Owner occupancy High: 50% of better buildings Efficiency High; usable area = 95% of rentable area ITBMS Tax Paid by tenant: 7% over the monthly rent. Property Taxes Landlord pays CBRE Offices Panama City +50 7 210 1675 For More Information About CBRE Panama http://www.cbre.com.pa/ For Local Market Reports http://gkc3.cbre.com/search/search.aspx Contact Carla M. Lopez Director of Valuation & Advisory, Panama +50 7 210 1675 clopez@cbre.com.pa Panama Page 48 of 309

LEASE LENGTH Term Lease terms for any length are possible, but are usually for at least three years for new space. Five years is common for corporate tenants. Termination or Break A termination option is negotiable in the lease and likely to incur a penalty. Renewal A right of renewal is negotiable, subject to rent review to market levels. SPACE MEASUREMENT Definitions Rentable floor areas measure to mid-wall of adjacent suites and include the area occupied by internal partitions. Shared hallways may or may not be included. Office spaces are always measured the same way. Units for sale or lease are legally registered with a specific area. Efficiency A typical ratio of carpetable area to rentable area in a Class A building in Panama City is 90 95%. OCCUPANCY COSTS Rent Rent Quoted: Leases are on a net basis. Generally, rent is quoted and contracted in US dollars per square meter per month. Rent Payable: The tenant pays rent monthly in advance, plus 7% ITBMS (Impuesto de Transferencia de Bienes Muebles y Servicios), a sales tax on the transfer of personal property and services, equivalent or similar to VAT. Free Rent: A free rent period of up to three months is available in most new buildings to allow for build-out. In second-generation space, build-out is usually less, and the free rent period is therefore shorter. Rent Escalation: Rates are fixed unless the escalation is established in the contract. Escalations are usually 3 5% per year after the second year. Common Area Maintenance The tenant pays a contribution to common area maintenance (CAM), typically USD 1.50 2.00/sqm, charged either as a condominium association fee or as a prorated allocation of total building costs. Taxes Unless stated otherwise in the lease, the owner pays property taxes, including increases. Utilities The tenant contracts directly with suppliers of other services, such as cleaning, utilities, and insurance. Panama temperatures require air-conditioning. The tenant pays the electric company directly, for electricity to operate the air conditioning equipment based on a meter, unless the building has chiller towers, in which case, this cost is part of the common area maintenance fee. Fit-Out In most leases, the landlord furnishes common areas only, and the tenant is responsible for all improvements. Occasionally the landlord partially participates. Fit-out costs for Class A or Prime buildings in major cities normally range from USD 300 700/sqm including construction, furniture, wiring, design fees, etc. and depend on the client s requirements. Panama Page 49 of 309

Restoration Although negotiable in the lease, the tenant normally does not agree to restore the premises to its original condition. Landlords are generally willing to take back an improved built-out space without requiring restoration. Security Deposits and Guarantees Panamanian law requires a one-month security deposit for all commercial and residential leases, from all domestic and foreign companies, which must be deposited at the government office. Landlords sometimes negotiate additional security if the Landlord is delivering a new space with improvements or a turn-key space. In those cases the Landlord will hold the security deposit. The law does not require that a security deposit be held in an escrow or separate account. Owners ask for other guarantees only for sale-leaseback contracts. Car Parking Some parking is included in the rent, up to one space per 50 60 sqm of leasable space. Additional parking may be available at around USD 100 150 per unit per month. Other Occupancy Costs Some buildings with cooling tower systems (chillers) for the whole building require an additional payment of approximate USD 1.00/sqm/month. TRANSACTION COSTS Agency Fees Normally, the landlord pays agency fees, although tenants are increasingly paying to be represented. All transaction fees are subject to ITBMS (7%). New Lease: For a one-year lease, agency fees equal one month s rent. For leases of more than one year, the agency will negotiate with the Landlord, in order to obtain compensation approximately equals to 5% of the total value of the lease contract for the first five years, 3% for years thereafter. Agency fees are mostly paid by the landlord, who will pay 100% to the broker that presented the Tenant, and if an external broker (cobroker) is involved, the brokers will split the commission based on what they have agreed before. The tenant rarely pays the commission unless the Landlord will not pay it. Sublease: Subleases are very rare. When they occur, the tenant (sublandlord) pays the fee as negotiated with the subtenant s broker. If there a co-brokerage exists, the brokers will split the commission earned. Lease Renewal: The landlord pays the commission fees if negotiated and agreed previously with the tenant s broker. Lease Termination: No agency fees apply for lease termination. Legal Fees Each party pays its legal counsel. Other Transaction Costs Notary and registry fees: The buyer or tenant pays them. Registration and other related fees for purchases amount to 2 3% of the transaction value. Panama Page 50 of 309

OTHER LEASE PROVISIONS Laws and Practices Civil Code: The Codigo Civil, Ley de Arrendamiento, covers the rights and responsibilities for tenants and landlords. Rights and responsibilities for commercial tenants differ from those of residential tenants. The terms and conditions of each contract are privately and freely negotiated between the parties involved. Those terms and conditions should be legal. The Ministry of Housing registers the contracts and provides a standard form for commercial and residential leases that indicates the general terms. In addition to that the parties could include other clauses and terms that are relevant and exclusive to their agreement. Lease Registration with the Leases Department of the Ministry of Housing: Most landlords register their leases in order to protect themselves. Otherwise, it is difficult to evict a non-paying tenant. Also, a tenant may claim to be the possessor, and dispute the owner s rights. Lease registration defines the relationship and role of each party, and facilitates the process of contract terminations if the tenant defaults. Registration is free, but the tenant must have paid the security deposit before a lease can be registered. Courts recognize lease contracts even if they are not registered with the government. The lease department of the Ministry of Housing may issue a brief standard contract, to ensure that all legal relevant matters are covered. Lease Registration at the Public Registry of Property (EARP) protects tenants when a lease provides an option to buy. Leases without an option to buy are rarely registered at the Public Registry of Property because parties often want lease terms to be kept confidential, whereas this registration makes lease terms available to the general public. According to the law, the landlord is responsible for registration, which must be notarized, even though it protects the tenant as the holder of the first right of purchase. Standard Lease Each lease is specific. No standard lease form exists. Right to Sublet Subletting is rare, but is negotiable and can be addressed in the lease. Landlords normally reserve the right to approve the sublease. Option to Expand & Right of First Refusal Any of the following may be negotiable and stipulated in the lease: an option to expand a right of first refusal of adjacent spaces a lease with the first option to buy Late Delivery by Landlord Penalties for late delivery by landlord are negotiated and addressed in the lease. Holdover by Tenant Penalties for holdover by a tenant may be negotiated or addressed in the lease. Signage and Naming of Building Exterior signage and naming of a building may be negotiable and addressed in the lease. OFFICE LEASING MARKET Market Practices Condominium ownership is the prevalent system. The majority of Class A buildings are condominiums, and a high percentage of office buildings built since the 1980s are condominiums as well. About 50% of high-quality office occupiers own their condominium space, and about half lease their space. The present trend leans more toward leasing than to buying. Most foreign companies lease rather than buy. Transparency Comparables that identify tenants, areas, and prices for recent sales transactions are available. However, such comparables are difficult to obtain for leases. Panama Page 51 of 309

Building Classification No commonly accepted way to classify buildings exists in Panama. However, CBRE classifies buildings as Class A, Class B, and Class C. PURCHASE AND SALES Agency Fees The seller pays 3 5% of the total price adjusted according to the size of the transaction. If separate brokers represent buyer and seller they share the commission, sometimes 50% 50%. Information contained herein, including projections, has been obtained from sources believed to be 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 confirm independently its accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of the CBRE Global Chief Economist. Panama Page 52 of 309

Peru What s Typical? Term 3 5 years typical Break Negotiable, usually with penalty Renewal Negotiable Rent basis Negotiable Free rent Up to 3 months for fit-out Escalation Higher of US CPI or 3% Security 3 6 months Fit-out Tenant pays Tenant broker Normally landlord pays Restoration Negotiable, usually tenant pays Right to sublet Rarely allowed Transparency Limited Currency Usually USD CBRE Offices Lima +511 436 6200 For More Information About CBRE Peru http://cbre.com.pe/ For Local Market Reports http://gkc3.cbre.com/search/search.aspx Contact Carol Galarza Marketing & Research + 511 436 6200 carol.galarza@cbre.com.pe Peru Page 53 of 309

LEASE LENGTH Term Three to five years is most common. Shorter or longer leases are possible. Termination or Break Early termination by the tenant is usually subject to a penalty payment, and is regularly addressed in the lease agreement. Renewal A tenant s right to renew should be established in the lease contract. SPACE MEASUREMENT Space Measurement Net rentable area in square meters is generally quoted for leases. This includes carpeted area plus an allocation of common areas on the floor. Buildings and their common areas tend to be small. In 2011, the highest Class A building has 23 floors. OCCUPANCY COSTS Rent Quoted: Rent is quoted net in U.S. dollars (USD) per square meter per month. Rent Payable: Usually in USD or in local currency at an agreed value. Maintenance charges are additional. Rent and maintenance are paid monthly and in advance. Free Rent: Up to 3 months for fit-out. Escalation: Rent adjusts annually by the U.S. CPI, or applying a 3% rate, whichever is higher. Common Area Maintenance A Common Area Maintenance fee, typically 13 15% of the rental rate, is added to rent. Taxes Property taxes and tax escalations are included in the rent. Value Added Tax ( IGV ) is 18% of the total rent. The landlord collects it from the tenant in addition to the base rent. Utilities The tenant pays directly for telephone, electrical costs, cleaning services and other utilities. Some Class A buildings charge additional fees for the use of central air conditioning. Tenant Improvements The landlord normally delivers previously-occupied space in as-is condition, but delivers new space in shell condition. Shell condition includes concrete floors and ceiling, finished restrooms, and air conditioning ducts to the entrance of premises. The tenant is generally responsible for all improvements. A landlord contribution to fit-out is negotiable, and usually minimal. Fit-out costs for Class A or Prime buildings in Lima normally range from USD 450 750 per sqm including construction, furniture, wiring, etc. Design fees are additional. Peru Page 54 of 309

Restoration In general, a tenant must restore space to its original condition, although this is negotiable. When new space is occupied for the first time, the landlord typically accepts tenant improvements. The lease specifies whether the tenant must restore the space, and may state that the landlord will not pay for the improvements that are left behind. Security Deposits and Guarantees A security deposit of 3 6 months rent is typical, as either a letter of credit or bank guarantee. Bonding may be required in addition. Letter of Credit: An obligation that a bank takes on to make a payment once certain criteria are met. Once these terms are completed and confirmed, the bank will transfer the funds. This ensures payment as long as the services are performed. Bank Guarantee: Like a line of credit, it guarantees a sum of money to a beneficiary. Unlike a line of credit, the sum is paid only if the opposing party does not fulfill the stipulated obligations under the contract. This is used to insure a landlord from loss or damage due to nonperformance by a tenant. Bonding (fianza). If a landlord does not receive rent in the first five days of the month, the landlord can collect the rent from the Fianza. The fee for bonding ranges from 2% 5% of the annual gross rent. Car Parking Parking spaces are not usually included in the rent, and are negotiated separately. Other Occupancy Costs Municipal Taxes: The tenant pays for municipal taxes related to community services such as street lighting, street security, maintenance, etc. Key money is rarely paid, except occasionally when a space is substantially improved. TRANSACTION COSTS Agency Fees Normally paid by the landlord. Other Transaction Costs Title VI of the Civil Code governs commercial real estate leases. Leases typically refer to articles in the civil code, and are therefore much shorter than in the US. A landlord can register a lease with the government authorities. There are no standard leases in Peru. OTHER LEASE PROVISIONS Laws and Practices Title VI of the Civil Code governs commercial real estate leases. Leases typically refer to articles in the Civil Code, and are therefore much shorter than in the US. A lease can be registered with the government authorities. Tenants generally prefer to register leases for protection in case the building is sold. Standard Lease There are no standard leases in Peru. Right to Sublet Subleasing is unusual and only permitted to companies related to the original company if negotiated in advance and noted in the lease. Option to Expand & Right of First Refusal The possibility of an expansion of the lease is always addressed in the lease if allowed. Peru Page 55 of 309

Late Delivery by Landlord Penalties for late delivery are established in the lease contract. Holdover by Tenant Penalties for late delivery are established in the lease contract. Generally the tenant would have to pay 150% of the regular rent. The landlord also has the right to sue the tenant. Signage and Naming of Building Façade signage may be negotiable if a tenant occupies a significant percentage of the building. For façade signage, the tenant typically pays monthly for the space that the signage occupies and pays all other related costs (license from local government, production, installation, maintenance, and removal). A building name cannot be changed. OFFICE LEASING MARKET Transparency Comparables for Lima including information on rents, tenants, etc., for recent transactions are generally not available. Building Classification In 2011, only Lima had major office buildings. However, this classification generally applies to Lima and elsewhere. Class A+ or AAA The terms A+ and AAA have the same meaning. Location: Highest level of access and urban services. Floor-to-Floor Height: Equal to or greater than 3.20 m. Common Areas: Conference Rooms are available for use by all tenants in the building. A supplier s payment counter is provided with an entrance separate from main building lobby. Many A+ buildings have a cafeteria for use by all tenants. Frame: Column spacing at least 8m x 8m to allow for open plan layout. Building System: Reinforced concrete. Steel frame buildings are rare in Lima. Exterior Curtain Wall: Insulated with solar control laminates. Electrical Installations: Programmable energy control system to adjust lighting levels to control energy usage. Trays in the false (i.e., suspended) ceilings to conduct wires. Energy Backup: Power generators for corridors and evacuation routes and, in some cases, for elevators. Tenants receive a small quantity of backup energy, normally for corridors and IT areas (servers). The building also has a transformer panel that switches the energy source to the power generator when needed as well as tenant-controlled generators for use in case of a blackout. Sanitary Installations: Water meter and flush valve toilets that minimize excess water usage. AC System: Central system. Fire Detection System: Required in the whole building. System is prepared to incorporate leased areas. Portable Equipment for Fire Fighting: This is provided in common areas. Water System for Fire Fighting: Required in the whole building. System prepared to incorporate sprinklers and hose outlets in leased areas, so that tenants can install the sprinklers as part of the fit-out. Pressurized Evacuation Stairs. Elevators: Automated system with high-capacity (typically 10-person) high-speed, high-finish elevators. Class A Location: High level of access and urban services. Floor-to-Floor Height: Equal to or greater than 3.00 m. Peru Page 56 of 309

Common Areas: Conference rooms, suppliers payment counters, cafeterias. Frame: Column spacing at least 6m x 6m. Building System: Reinforced concrete. Exterior Curtain Wall: Insulated with solar-control laminates. Electrical Installations: Automatically integrated systems that are less sophisticated than in Class A+ buildings. Motion detectors to turn lighting on and off. Trays are the same as in Class A+ buildings. Energy Backup: Generators for common areas and transformers. Sanitary Installations: Flush tank toilets. AC System: Central system. Fire Detection System: Required in the whole building. System is prepared to incorporate leased areas. Portable Equipment for Fire Fighting. Water System for Fire Fighting: Required in the whole building. System is prepared to incorporate leased areas, so that tenants can install the sprinklers as part of the fit-out. Pressurized Evacuation Stairs. Elevators: High-capacity (ten passengers), speed and finishes. Class B Most Class B buildings were built as office buildings. Location: Acceptable level of access to main and secondary streets. Floor-to-Floor Height: Equal to or greater than 2.50 m. Common Areas: Lobby but generally no shared conference rooms or cafeteria. Structural Frame: Column spacing at least 4m x 4m. Building System: Reinforced concrete or load-bearing walls. Exterior Curtain Wall: Low-cost exterior curtain walls. Electrical Installations: Conventional non-automatic system. Wires are distributed in the false ceiling along trays or through walls. Energy Backup: Manual transfer panel to switch the electricity source to the building s generator in case of a blackout. Sanitary Installations: Flush tank toilets. AC System: Single units. Fire Detection System: In common areas and parking area. Sometimes ready-to-integrate leased areas. Portable Equipment for Fire Fighting. Water System for Fire Fighting: In common areas and parking area. Sometimes ready-to-integrate leased areas. Pressurized Evacuation Stairs. Elevators: Capacity up to eight passengers. Average finishes. Class C Most Class C buildings were built as residences and converted to office use. Location: Low level of access; location on secondary street. Floor-to-Floor Height: Equal to or greater than 2.40 m. Common Areas: Lobby but no shared cafeteria or conference rooms. Structural Frame: Open office layout is limited by short spans between columns and walls. Building System: Reinforced Concrete System or load-bearing walls. No exterior curtain wall. Electrical Installations: Not automatic system. Conventional channeling or recessed trays. Wires are distributed in the false ceiling or through walls. Peru Page 57 of 309

No energy backup. Sanitary Installations: Water tank for daily use only, not sufficient for firefighting. No AC system. No fire detection system. Portable equipment for fire fighting. No water system for fire fighting. No pressurized evacuation stairs. Elevators: Capacity up to six to eight passengers, average finishes. PURCHASE AND SALES Market Practices Office space can sometimes be purchased. Agency Fees Agency fees are 3 5% of the transaction value. Normally only the seller pays fees. The buyer pays his agent if the seller s agent refuses to share the fee. Other Transaction Costs The buyer pays a transfer tax (Alcabala) for property transactions. This tax represents 3% of the assessed value of property. Information contained herein, including projections, has been obtained from sources believed to be 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 confirm independently its accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of the CBRE Global Chief Economist. Peru Page 58 of 309

Venezuela What s Typical? Term 3 years typical Break Negotiable Renewal Negotiable Rent basis Net. Landlord pays property tax. Free rent 3 months for fit-out Escalation Rent review, often every 6 months Security 3 months typical Fit-out Tenant normally pays Tenant broker Either landlord or tenant pays Right to sublet Rarely allowed Transparency Limited Ownership Condominium ownership common CBRE Offices Caracas +58 212 285 2831 Puerto La Cruz +58 281 287 2121 For More Information About CBRE Venezuela www.cbre.com.ve For Local Market Reports http://gkc3.cbre.com/search/search.aspx Contact Vilma Díaz Brokerage Services Director +58 212 285 7918/ 285 2831 vilma.diaz@cbre.com Venezuela Page 59 of 309

LEASE LENGTH Term Any length is possible, although 1 3 years are the most common terms. Termination or Break Options to terminate are negotiable and addressed in the lease, often with a penalty, which is established depending on when the early termination is executed. The earlier termination implies a higher penalty. Renewal Options to renew are negotiable. Rent conditions for renewal are usually addressed in the lease agreement. Rent for renewal period is adjusted as agreed, usually to market rent or with CPI adjustment. SPACE MEASUREMENT Space Measurement Net lettable area in square meters is generally quoted and rented. Restrooms are included in the net lettable area only when they are located inside the office space. Circulation space located outside the tenant s space is excluded from lettable area. Efficiency A typical ratio of carpetable area to net lettable area in a Class A building in Caracas is 85 90%. OCCUPANCY COSTS Rent Rent Payable: The tenant usually pays rent monthly in advance, but with high inflation rates, parties sometimes agree to payment of rent every six months in advance, Currency: Rents are established and paid in Bolivars Fuertes (Strong Bolivar= VEB= BS.F). In August 2008, the Bolivar Fuerte (VEF) replaced the old Bolivar (VEB) at the rate of one Bolivar Fuerte per 1000 Bolivars. Free Rent: Rent-free periods are common in new buildings and in premises that need refurbishment. The free rent normally varies with the delivery condition of the space and on the lease term. Three months of free rent for build-out is typical for lease contracts longer than one year. Rent Reviews: Rent reviews during the lease term are commonly adjusted by the CPI, unless parties have agreed otherwise. These rent adjustments occur annually, but lately due to high inflation rates, it is more common for parties to agree to adjust rents every six months. The CPI increased by 27.6% in 2011. Rent reviews to market only occur when negotiating new contracts or renewals. Common Area Maintenance Leases are on a net basis. The tenant usually contributes to Common Area Maintenance (CAM), typically VEF 25-35/sqm/month in Class A buildings, either as a condominium association fee or as a prorated allocation of total building common area costs. Taxes The landlord pays property taxes and does not recover them through service charges or otherwise. The landlord does not pass property tax increases to the tenant. Utilities Tenant pays supplier directly, according to usage, for telephone, electrical and other utilities. Water is paid through Common Area Expenses. Venezuela Page 60 of 309

Tenant Improvements Landlord s Work: The landlord or developer normally fully furnishes only common areas. The tenant is responsible for all improvements to its premises. The landlord seldom participates in tenant improvements. Offices in new buildings are delivered in obra gris (grey finishing) condition, which means shell, i.e., with no floor or ceiling finishing. Only common areas are fully equipped. Tenant s Work: The tenant is responsible for all improvements to its premises. The landlord rarely participates in tenant improvements. Cost of Tenant s Work: Class A or Prime buildings in major cities normally range from VEF 4000 6000/sqm including construction, wiring, design fees, etc., excluding furniture. Restoration A tenant must be prepared to restore space to its original condition, but landlords usually accept built-out space without restoration but in good condition. Occasionally a tenant can negotiate a lease that allows the tenant to vacate without restoring. Security Deposits and Guarantees Three months net rent is typical. Car Parking When available (rarely), some parking spaces are normally included in the rent, and additional spaces are at an additional cost. Other Occupancy Costs The tenant pays for cleaning, insurance, and security, as applicable. TRANSACTION COSTS Agency Fees New Lease: When only the landlord is represented: For a one-year lease, the fee is one month s rent. For leases of more than one year, the fee is up to 5% of the total value of the lease contract for the first five years, up to 3% for years thereafter. When different brokers represent landlord and the tenant, each may receive fees as outlined above, as negotiated. Sublease: When only the landlord is represented, the broker gets up to 5% of total sublease value. When different brokers represent landlord and the tenant, each may receive fees as outlined above, as negotiated... Lease Renewal: Up to 4% of total rent for renewed term; the minimum fee being the equivalent to 21 days rent for one-year term renewals. Lease Termination: When the tenant hires an agent to assist in getting a lease terminated, the fee is negotiable. It can be a lump sum or a percentage of the savings. For example, it can be 20% of savings, but not less than one month of current lease. Legal Fees Each party pays its legal representatives. Legal fees normally depend on the scope of work. Other Transaction Costs The tenant pays legal fees, notary s office registration fees, and stamp duty. Stamp duty on a lease is minimal. Venezuela Page 61 of 309

OTHER LEASE PROVISIONS Laws and Practices Leases are governed by Tenant s Law, which regulates (among other issues): Extension rights for tenants Maximum guaranty Lease rate adjustment for the legal extension period when the adjustment has not been addressed in the contract Legal length for the extension depends on length of the occupancy by tenant and varies from 6 months up to 3 years Standard Lease The law requires some standard clauses in every lease, such as warranties, legal extension rights, and payment currency. Parties agree on other clauses, such as lease term, repairs, sublease, penalties, CAM costs, etc. Right to Sublet Subletting is rarely allowed. If it is allowed, the specific terms are agreed upon and addressed in the lease contract. Option to Expand & Right of First Refusal Late Delivery by Landlord Negotiable but rare. If agreed to, it is addressed in the lease. Late delivery is rare. If it occurs, the tenant can break the lease and force the landlord to pay a penalty that was agreed upon in advance and established in the lease contract. Holdover by Tenant If the tenant holds over, the penalty is calculated on a daily basis rate and is usually much higher than the amount paid during the lease. The increased amount is previously agreed to between the parties and is addressed in the lease. Signage and Naming of Building Negotiable and payable by tenant. This does not necessarily have to be addressed in the lease, although it can be addressed in a different formal agreement. OFFICE LEASING MARKET Market Practices Ownership by occupiers is common in Venezuela. Many corporations choose to own instead of lease, to hedge against the high inflation in Venezuela. Transparency For Caracas, comparables that identify tenants, square meters, rents and incentives for recent transactions, are rarely available. Lease contracts can be signed in a notary office located anywhere and are almost impossible to track. Building Classification Buildings in Venezuela are classified as either Class AAA, AA, A, Class B or B-, or Class C. International occupiers generally occupy Class AAA, AA, or A buildings. These are located in premium sectors, have a corporate image, large floors (min. 700 sqm), access control, excellent maintenance, availability of support services, etc. Venezuela Page 62 of 309

PURCHASE AND SALES Market Practices Ownership by occupiers is common in Venezuela. Many corporations choose to own instead of lease, to protect against the high inflation in Venezuela. Agency Fees A basic fee ranges from 3 5%, and is negotiable, depending on sale price and on the feasibility of disposition. For example, if a property is likely to sell quickly, the fee can be in the lower part of the range. If the property value is low, the fee can be at the high end. The common practice is that the seller pays the fees and both agents split it; however, sometimes the purchaser pays the fee to its agent, in order to avoid a conflict of interest. Under these circumstances, the purchaser pays 3% or less, and the seller pays a fee as agreed with seller s agent. Other Transaction Costs The buyer pays the government 1% of the value of the transaction and all legal costs related to the transaction (at notary and registry office) including registration expenses (registration taxes, document drafting, etc.). The seller pays the government a capital gains tax of 36% of the capital gain on the sale, indexed. Of this tax, 0.5% of the sale price is due to the government immediately before the signature of the sale document. The remainder of the capital gains tax is due with the tax statement of the corresponding year. The seller also pays solvencies emissions; i.e., the seller s pro rata share of the property tax, energy bill, water service, and condominium association fees, that apply to the portion of the billing period during which the seller owned the property. Information contained herein, including projections, has been obtained from sources believed to be 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 confirm independently its accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of the CBRE Global Chief Economist. Venezuela Page 63 of 309

Austria What s Typical? Fixed Leases 80% of leases Term Any length Break Negotiable Renewal Negotiable Rent basis Net Free rent Up to 1 month per year of lease Escalation Negotiable. Usually indexed to CPI Security 3 6 months deposit typical Fit-out Tenant pays Tenant broker Tenant pays Restoration Negotiable, normally tenant pays Right to sublet Rare Transparency High in Vienna Indefinite Leases 20% of leases Term Normally begin with fixed term Break by tenant After fixed term ends Break by landlord Landlord normally cannot break. Fixed and Indefinite Leases Workplace laws Natural light required for offices and workstations CBRE Offices Vienna +43 1 533 40 80 Austria For More Information About CBRE Austria http://portal.cbre.eu/at_en About CBRE Austria Research http://portal.cbre.eu/at_en/research For Local Market Reports http://gkc3.cbre.com/search/search.aspx Contact Constanze Daburon Associate Director - Head of Research +43 1 533 40 80 22 constanze.daburon@cbre.com Page 64 of 309

LEASE LENGTH Term Commercial leases run for an indefinite period (Unbefristet) or for a limited number of years (Befristet). Limited leases can be of any length, and no law exists to limit the length. Three to seven years is typical. 80% of signed contracts in 2012 are limited. International occupiers and international investors tend to prefer limited leases. Termination or Break Indefinite leases (Unbefristet): The landlord cannot terminate a lease unless the tenant is in default. The tenant gives a waiver, by which the tenant agrees to be bound to the lease for a fixed period of time (Kündigungsverzicht). The tenant s right to break applies only after the end of the waiver and within the notice period. Limited leases (Befristet): For limited lease contracts, the tenant s right to break does not apply. The tenant must pay the rent and service charges for the remaining lease term unless the tenant finds a new tenant, acceptable to the landlord, to take the space, either as a direct tenant with the landlord or as a subtenant. Renewal The tenant has a right of renewal only if stipulated in the lease. This right only applies to limited leases. SPACE MEASUREMENT Space Measurement Office measurements are on Net Internal Area, known as Nettogrundrissflâche (NGF), which includes kitchens and restrooms, internal walls and circulation space, but excludes vertical penetrations and structural walls. Definitions Measurement is based on GIF (Gesellschaft für Immobilien Forschungsinstitut) or DIN 277 for new buildings, existing buildings use local standards. Efficiency A typical ratio of gross area to net area in a class A building in Vienna is 92 95 % OCCUPANCY COSTS Rent Rents Quoted: Rents are normally quoted in EUR/sqm/month. Service charges and property taxes as part of the service charges are additional. Rent, together with the service charge, is payable monthly in advance. Double net leases are typical. Under these leases, landlords are responsible for the maintenance of core and shell of the building, while tenants pay for other repairs through service charges. Free Rent: Landlords grant free rent periods of 1 3 months for the fit-out period. Up to one month rent free per year is standard and can be consumed as free rent or fit out costs. Rent Escalation: Rent increases are negotiable and may be linked to the consumer price index (CPI) and adjusted annually. Commonly, leases are fully indexed annually to the CPI. Or they may be linked to the CPI and adjusted when CPI increases by an agreed amount, such as 5%. Repairs: The landlord is normally responsible for structural repairs and external repairs. In multi-let buildings, the landlord is responsible for major repairs to common areas. The cost is generally not recoverable from the tenant. Austria Page 65 of 309

Service Charges The tenant pays service charges. For a Class A office,service charges are generally about EUR 2.5 4.0 per square meter per month, depending on some specific costs such as heating and cooling, and in office towers between EUR 3.5 5.0 per square meter per month. Service charges typically include: Insurance: The landlord normally pays for building insurance and recovers its cost from the tenant through service charges. Electricity for the common areas for lighting. Running costs and maintenance costs for lifts, cooling machines, etc. Heating and Cooling: The tenant pays for heating and cooling through service charges or separately. Security and Reception: If the landlord provides security and reception, service costs are higher. In general, only office towers have reception on the ground floor. Some exceptions exist for newly built Class A buildings. Building Security: Building security charges are usually part of the service charges. However, extra charges for building security can range from EUR 0.5 1.0 per square meter per month. Building security applies mostly to towers, where service charges are always higher than in standard office buildings. Property Tax: By law, this is a service charge. Taxes Value Added Tax (VAT): VAT at 20% is payable on rent, service charges, agents fees, legal fees, notary costs, and car parking. Most companies (but not banks, federations and associations) can recover VAT. Property Tax: The local real estate tax is approximately EUR 2 3 per square meter per year for all classes of office space, and is recoverable from the tenant as a part of the service charges. The amount of tax is based on a complex calculation, which is done by the local authorities. Utilities Electricity: The cost of electricity for common areas is included in service charges. For the electricity used in the leased area, the occupier must sign a contract with an electricity supplier and pay the electricity supplier directly. Water: Water used by the tenant for normal office use is included in the service charges that the tenant pays. Fit-Out Landlord s Work: The landlord typically delivers space with suspended ceilings, ceiling lighting, carpeting, raised floors, standard partitions and restrooms. Tenant s Work: The fit-out must comply with the guidelines of the Arbeitsinspektorat, which govern distances for natural light, position of desks, position of PCs on a desk, etc. For example, private offices must have windows to outdoors and an air-exchange system, although cooling is not required. Windows are not required in conference rooms. The tenant is responsible for construction work with the landlord s approval. The tenant normally pays for air conditioning upgrading. Fit-Out Costs: Fit-out costs for Class A or Prime buildings normally range from EUR 250 500 per square meter including construction (which is part of the tenant s fit-out), wiring (which is negotiable), etc. Normally these fit-out costs are negotiable, specified in the lease, and included in the rent. Landlord fit-out costs for a lease extension are also negotiable. Restoration The tenant is normally responsible to restore premises to original condition, unless otherwise negotiated and stipulated in the lease. Security Deposits and Guarantees Landlords usually require a deposit of 3 6 months gross rent, or a rental guarantee from a bank that allows the landlord to withdraw a guaranteed sum without explanation. Car Parking Monthly charges are typically EUR 150 250 per space per month in city centers; EUR 50 150 per space per month elsewhere. These charges are normally in addition to the rent. Austria Page 66 of 309

Other Occupancy Costs Additional costs for electricity, cleaning and other services within the leased area are common. TRANSACTION COSTS General Transaction Costs Most users find premises via brokers, although not always on an exclusive basis. Most international companies, and more recently, Austrian companies, use brokers on an exclusive basis. In Austria, brokers can be paid by both the landlord and the tenant on a single transaction. Non-exclusive agents typically favor buildings for which they represent the landlord, to collect two fees. CBRE Global Corporate Services acts exclusively for occupiers. Agency Fees New Lease: Each party pays up to 25% of one year s rent to its agent. Occasionally the landlord pays the tenant s agency fees. Lease Renewal: Fees for lease renewal can be based on savings, normally in addition to a base fee. Alternatively, the agent gets reimbursed a preagreed fixed amount. Rent Review: Fees are based on savings achieved by the agent normally a base fee or minimum fee is agreed between the client and the agent. Sublease: Both sublessor and subtenant pay up to 25% of one year s rent. Legal Fees Legal advisor fees are additional. Other Transaction Costs The stamp duty is 1% of total rental income for a definite lease contract, or 1% of the 3-year total rent for an unlimited contract. OTHER LEASE PROVISIONS Laws and Practices The Rent Act, known as Mietrechtsgesetz (MRG) governs leases so that regulations for commercial leases in modern office buildings are generally similar to the international standard. Negotiating In general, each party, the landlord and the tenant, is represented by its appointed agents. The tenant s agent usually develops a lease requirement profile together with the tenant s specialized teams (agent, project management), and draws a list of potentially suitable locations accordingly. After a detailed review, a shortlist of potential locations is established. The identified locations are then compared through a stay vs. relocate analysis, under which the possibility to blend and extend lease terms at the existing location is also considered. Each shortlisted landlord receives a Request for Quote / Proposal document which is created by the agent in close cooperation with the tenant s internal teams. Usually the two best offers are then followed up with detailed negotiations, size fits and floor planning and negotiated to final terms before a decision is made. The process as outlined above guarantees full transparency and best results for the represented occupier. Standard Lease Standard lease forms and standard formats are not used in Austria. Right to Sublet Subleasing is rare. From an occupier perspective, the rights associated with a sublease are weaker than those granted by a master lease, and hence tenants prefer not to sublease space. The landlord may negotiate a right to approve any subtenant. Austria Page 67 of 309

Option to Expand & Right of First Refusal Option to expand is not typical but a 5 years lease + 5 years option is often negotiated. A tenant may negotiate a first refusal for his occupied space. Late Delivery by Landlord The law requires a landlord to pay any damages resulting from late delivery. Holdover by Tenant No penalties apply unless stipulated in the rental agreement. Signage and Naming of Building Typically, the cost of signs at the entrance is included in the rent. Additional signs and illuminated signs on the façade and roof are normally negotiable, but legal restrictions exist, especially to protect historic buildings. OFFICE LEASING MARKET Transparency In Vienna, information on comparable deals (tenants, square meters, and rents) is generally available for recent transactions. For markets outside of Vienna, such information is difficult to obtain. Building Classification No standard building classification system exists in Austria; however, CBRE uses the following classifications: Grade A: These buildings have suspended ceilings and raised floors, cooling, clear ceiling height min. 2.80 m. Grade B: If one of the criteria above is not met, the building is Grade B. Grade C: These are older buildings without cooling, low ceiling height, and no raised floors. PURCHASE AND SALES Market Practices In Austria asset or share deals are possible. Private buyers usually buy a property as an asset deal. Institutional investors use a share deal structure to reduce the transaction costs. Agency Fees The buyer pays up to 3% of the purchase price to the agent. For investment transactions (institutional investors) the agent receive 0.5 1.5 % depending on the volume of the transaction. Other Transaction Costs Asset Deal: 3.5% land transfer tax + 1.1% registration fee + 20% VAT = 5.5% + 0.5 1.0% legal (and tax) advisor Share Deal: ~ 1.2% + 0.8 1.5% legal and tax advisors Information contained herein, including projections, has been obtained from sources believed to be 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 confirm independently its accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of the CBRE Global Chief Economist. Austria Page 68 of 309

Bahrain What s Typical? Term Break Renewal Rent basis Free rent Escalation Security Fit-out Tenant broker Right to sublet Transparency Any length, 2 3 years typical Options common Options negotiable Net 2 6 months typical, depends on size of spaces Rent reviews typically lower of CPI or 10% 1 month typical Tenant pays Landlord pays Allowed but rare Very low; Non-disclosure agreements common CBRE Offices Manama +973 1655 6600 For More Information About CBRE Bahrain www.cbre.bh About CBRE Bahrain Research http://www.cbre.bh/bh_en/research For Local Market Reports http://gkc3.cbre.com/search/search.aspx Contact Mr. Steve Mayes Manager +973 1655 6607 steve.mayes@cbre.com Bahrain Page 69 of 309

LEASE LENGTH Term Leases can be of any length, although two to three years is the norm. Termination or Break Landlords commonly grant the tenant an option to terminate upon giving the requisite notice period; three months for short leases and up to six months for longer leases. The Tenancy Agreement usually addresses the process of termination, and provides for penalties when the process is not followed. Renewal An option to renew is negotiable. SPACE MEASUREMENT Space Measurement Office building areas are usually quoted based on net internal area according to RICS guidelines, but there is no legal requirement to do so or to use any standardized measurement system. OCCUPANCY COSTS Rent Quoted Rents: Landlords quote rents for commercial properties on a net basis in Bahrain dinars (BHD) per square meter, per month. The Bahrain Dinar is linked to the U.S. Dollar, so that BHD 1 = USD 2.65. Currency for Rent Payable: Rent negotiated and stated in the contract is in Bahrain dinars. Free Rent: Landlords commonly grant two to three months rent-free for fit-out for smaller spaces (up to 300 sqm) and up to six months for larger spaces. Rental Payment: Typically, rents are payable quarterly in advance. Rent Advance: Tenant pays three months rent in advance and security deposit equal to one month s rent upon lease commencement. Rental Escalations and Review Periods: Leases provide for periodic rent reviews at an agreed percentage increase, typically 10% or market rate, whichever is lower. Service Charges Service charges cover a tenant s proportional contribution towards building maintenance and services. Service Charges generally include, but are not limited to, general maintenance, cleaning and waste management, elevator maintenance, supplies including generator fuel, security cover, landscaping, maintenance of back-up generator and facilities management fee. Service charges are also commonly called tenant service charges or common area maintenance. Typical service charges range from 15 20% of the rental rate. Taxes Municipality charge is levied at 10% of rental rate. This is typically paid by the landlord for commercial office space. Utilities Tenants pay for electricity and water according to metered usage. Tenants pay for their own telecommunications. Fit-Out Tenants pay all fit-out costs for typical core and shell presentation. Municipality and Civil Defense approval is required for fit-out. Standard office fit-out, excluding electrical, typically costs around BHD 100 per square meter. Restoration The lease normally addresses restoration or surrender of fit-out. Bahrain Page 70 of 309

Security Deposits and Guarantees A typical security deposit is the equivalent of one month s rent. Car Parking Typically, tenants can expect one parking space per 75 sqm of space taken to be included in the rental rate although this can vary from 50 sqm to 150 sqm depending upon the age and location of the building. Other Occupancy Costs There are no other significant occupancy costs other than tenant insurance. TRANSACTION COSTS Agency Fees New Lease: Landlord pays an agency fee of 8.33% of first year s rent to the tenant s broker. Sublease: Subleases are not common. Sublessor would pay 8.33% of first year s rent. Lease Renewal: Fees are typically between 50% 100% of one month s rent, and are negotiable. OTHER LEASE PROVISIONS Standard Lease There are no standard leases in use in Bahrain. Larger international real estate practices and more modern development companies generally provide British-style leases adapted for local use in the English language. Local brokers and Bahraini development companies generally provide insubstantial lease documentation in Arabic, although market forces and accepted best practices are phasing these out. Right to Sublet Most leases provide for subleasing, subject to landlord consent, although tenants rarely exercise this right. Option to Expand & Right of First Refusal Late Delivery by Landlord An option to expand may be negotiable, subject to availability, and lease conditions. There is no culture of pre-leasing in Bahrain, due to construction and infrastructure issues. Tenants typically sign leases only after substantial completion of a building. Holdover by Tenant Not typical in Bahrain, but happens on occasion, largely as a negotiating ploy by the tenant. Signage and Naming of Building Negotiable, subject to lease conditions and percentage of space taken in building. OFFICE LEASING MARKET Market Practices Most office occupiers lease, rather than own. Strata title (i.e., ownership of units by various occupiers or investors) freehold office sales are rare in Bahrain, with only one or two buildings available in the new business district of Seef direct from the developers. Transparency Rental transaction information is typically regarded as confidential. No central database for transaction details in Bahrain exists, and Bahrain does not have a culture of disclosure. Non-disclosure agreements are commonplace. International real estate professionals may share market intelligence and generally cooperate under informal agreements. Bahrain Page 71 of 309

Building Classification Properties can be informally classified as follows, although no formal building classification system exists. Grade A: International Grade A commercial space in Bahrain is currently limited to two iconic projects with a global profile and high specification space that meets international standards for IT and electrical provision, elevator capacity, parking and common areas, etc. Local Grade A: Well-appointed modern commercial office buildings with good facilities, located in commercial centers. Grades B and C: Properties lacking modern facilities and in locations that may no longer be considered primary commercial districts. Information contained herein, including projections, has been obtained from sources believed to be 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 confirm independently its accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of the CBRE Global Chief Economist. Bahrain Page 72 of 309

Belgium What s Typical? Term Break Renewal Rent basis Service charges Free rent Escalation Security Fit-out Tenant broker Right to sublet Transparency Registration 3/6/9 lease typical Options at 3rd and 6th years of lease typical Most leases waive renewal rights Net By law, service charges may not exceed actual costs 1 month typical Annual Health Index 6 months bank guarantee typical Tenant usually pays Tenant pays Common High Tenants register for protection. Leases longer than 9 years must be enacted before a notary public. CBRE Offices Brussels +32 2 643 33 33 For More Information About CBRE Belgium http://www.cbre.be/be_en About CBRE Belgium Research http://www.cbre.be/be_en/research For Local Market Reports http://gkc3.cbre.com/search/search.aspx Contact Kim Verdonck Head of Research & Marketing, Partner +32 2 643 33 34 kim.verdonck@cbre.com Belgium Page 73 of 309

LEASE LENGTH Term A standard lease, known as 3/6/9, is a nine-year lease agreement with break options every three years. Parties however are free to agree on different terms. Normally, either party can exercise the break, unless otherwise stipulated in the lease contract. Termination or Break The parties can not terminate the contract prior to the break option without each other s consent. Renewal Lease contracts typically don t provide for automatic renewal at lease expiry SPACE MEASUREMENT Definitions Space is measured as Gross Leasable Area (GLA), in accordance with the guidelines set out by the BACS s (Belgian-Luxembourg Association of Chartered Surveyors) measuring code. Although not mandatory, the code aims to promote the consistency of measurement across the real estate industry. GLA includes: Area occupied by internal walls and partitions. Covered and accessible atria, measured at base level only. Columns, shafts, piers, chimney breasts, stairwells, lift wells, other internal projections, vertical ducts, etc. All corridors including those of a permanent and essential nature (fire corridors, smoke lobbies, etc.) and those used in common with other occupants. Service accommodations such as toilets, toilet lobbies, bathrooms, cleaner s cupboards, kitchens, etc. Efficiency A typical ratio of Net Usable Area (NUA) to Gross Usable Area (GUA) in a Class A property is 85%. OCCUPANCY COSTS Rent Rent Quoted: Rents and service charges are quoted in EUR/sqm/year. Rent Payable: Quarterly in advance. Free Rent: One month free rent is typical, however this and other incentives vary with lease length, state of the market, etc. Rent Escalation: Rent is fully indexed annually to the Health Index (indice de santé or gezondheidsindex). The Health Index is a measure of the cost of living. Unlike the CPI, the Health Index does not take into account the prices of tobacco, alcohol, gasoline, or diesel fuel. By law, indexation must take place no sooner than one year after the actual start date of the lease contract (not the date of signature). Belgium Page 74 of 309

Service Charge The tenant pays the landlord the service charge. Belgian law prohibits the owner from recovering from tenants more than the actual cost incurred in providing these services. The law requires the landlord to provide the tenant who asks to review landlord s invoices with a detail of the invoices included in the common charges. However, a court order is needed for a tenant to review landlord s records of specific detailed expenditures, such as individual employee salaries, etc. Service charges are adjusted at the end of the year once actual costs are known. Service charges cover: Electricity for common areas Heating Ventilation and Air Conditioning (HVAC) systems costs, unless each tenant uses an independent heating/cooling system Maintenance of technical equipment, including air conditioning and elevators Property insurance Miscellaneous items such as gardening, security, etc. Taxes The tenant typically pays about EUR 30 40/sqm/year in the Brussels Capital region, EUR 8 10/sqm/year in Brussels Periphery, and up to EUR 10 15 in other regional cities. These taxes include: Property Tax: The landlord always collects the property tax (précompte immobilier or onoerende voorheffing) from tenants. The property tax is due annually. This is based on an estimate of normal net average annual rental income of the premises (revenu cadastral or kadastraal inkomen), estimated for offices and all other properties in Belgium, which was last updated in 1975 (péréquation cadastrale or kadastrale lastenverdeling), and has been indexed since 1991. Regional and local governments can charge extra taxes on office space. These taxes may be administered by the landlord or the landlord s agent or may be directly payable by the tenant. These extra taxes only apply to the Brussels region and include: (1) Regional Tax: The tax applies to all Brussels, since the city has the status of a region. (2) Communal Tax: Brussels city comprises 19 Communes. The communal tax on office space varies according to the commune where the property is located. (3) Other Communal Taxes: These can include taxes per square meter and per parking space. Only five communes within the Brussels region charge an additional tax for parking spaces. Utilities Electricity for common spaces is included in the service charges and paid to the landlord, typically around EUR 4/sqm per year. Electricity for tenant consumption is metered for each tenant, and is typically about EUR 6/sqm per year. Water costs about EUR 2/sqm per year for common areas and EUR.05/sqm per year for tenant areas. Tenant Improvements Landlord Work: The landlord normally delivers space with heating, air conditioning, mechanical and electric service, suspended ceilings, ceiling lighting, carpet, and restrooms. Tenant Work: The tenant pays for partitioning and upgrading, which require the landlord s consent. If the landlord contributes to fit-out costs, the lease agreement may require the tenant to repay part of the initial fitout costs when the tenant leaves. Cost of Tenant s Work: Fit-out costs for Class A or Prime buildings in major cities normally range from EUR 500 800/sqm, and can include construction, furniture, wiring, design fees, etc. Restoration The tenant must return the space to its original state, if stipulated in the lease. A initial schedule of condition (état des lieux d entrée or Inventaris bij aanvang) and a final schedule of condition (état des lieux de sortie or Inventaris bij vertrek) are drawn up and used to assess the state of the premises and potential dilapidations caused by tenants. Security Deposits and Guarantees Landlords normally require a bank guarantee of six months rent. The bank guarantee is generally the same for all companies, regardless of their creditworthiness or origin. The law generally provides strong protection to tenants. Belgium Page 75 of 309

Car Parking Parking spaces rent at an additional cost to the tenant, and are often allocated according to the proportion of the total space occupied by each tenant. Other Occupancy Costs Building Security: Service charges cover the cost of building security; however, tenants commonly pay for extra security in multi-let buildings, mostly to have their private alarm system and access control supervised. Repairs: Unless otherwise stipulated in the lease, Article 1720 and Article 1754 of the Civil Code apply. According to these articles, the landlord is responsible for the exterior of the property and replacement of the building s mechanical equipment, such as elevators, boilers, air conditioning, and other structural components. The tenant is responsible for repairs and maintenance of the leased area. However, a common market practice is to include in the lease Articles 605 and 606 of the Civil Code, which limit the landlord s obligations. Parties are free to modify these terms. TRANSACTION COSTS Agency Fees Tenant representation is becoming increasingly common. Fees vary depending on the type of lease: New Lease: The tenant pays its agent 15% of the first year s rent, or the tenant pays a lump sum plus a preagreed success fee based on savings. The landlord pays its agent 15% of the first year s rent. Lease Renewal: For a desktop renewal, the tenant pays its agent a fee of 7.5% of the first year s rent. For a full renewal, the fee amounts to 10.5% of the first year s rent. Tenants sometimes prefer to pay a pre-agreed percentage of savings secured against the landlord s quoted rent. The landlord pays its agent a fee of 7.5% of the first year s rent for a desktop renewal; 10.5% of the first year s rent for a full renewal. Sublease: The tenant pays its agent 15% of the first year s rent. Tenants sometimes prefer to pay a preagreed success fee on savings. Other Transaction Costs The tenant is responsible for lease registration with the Ministry of Finance in the language of the region, French or Dutch. Leases in English are sometimes accepted. Without registration, the sale of the property to a third party could invalidate the lease. Leases exceeding nine years must be enacted before a notary public and registered in the mortgage registry. In this case, the tenant pays a registration fee that includes mortgage duties and notary fees. No other significant transaction costs exist. OTHER LEASE PROVISIONS Laws and Practices Legislation: The Belgian Civil Code governs leases. Letter of Intent: A Letter of Intent usually precedes a written contract. In Belgium, a letter of intent is binding unless otherwise specified. A letter of intent often specifies conditions (building permit, board approval, etc.) that have to be met before a contract can be signed. Standard Lease Most Belgian lease agreements are standard since the Belgian lease law is very developed. Most lease agreements have approximately 25 clauses and a maximum of 20 pages. Right to Sublet Subleasing is common in Brussels. Subleasing normally requires the landlord s prior written consent. A tenant has a right to sublease only if such right is provided for in the lease contract. Option to Expand & Right of First Refusal A right of first refusal is often negotiable in the lease agreement, although it is not part of a standard lease. Belgium Page 76 of 309

Late Delivery by Landlord Penalties are negotiable. Holdover by Tenant Leases that address holdover by the tenant are uncommon in Belgium so far, but holdover conditions and penalties are negotiable. Signage and Naming of Building Signage is negotiable with the landlord. Landlords rarely allow naming of a building. OFFICE LEASING MARKET Market Practices An agent normally represents either the landlord or the tenant, not both. An agent that represents both parties should disclose it. Transparency The Belgian real estate market is highly transparent. All transactions across sectors are publicly available. Tenant names, square meters, and rents for recent transactions are generally available. Building Classification Office classifications (A, B, C) indicate the age and, in most cases, also the quality of a building. But a higher grade building does not always offer more services such as air conditioning, cleaning, etc., than a lower-grade building. Grade A buildings must have been built or renovated within the past five years, and are of high quality. Grade B buildings are typically 5 15 years old, but may be newer but of lower quality. Grade C buildings are typically 15 years old or older. Information contained herein, including projections, has been obtained from sources believed to be 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 confirm independently its accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of the CBRE Global Chief Economist. Belgium Page 77 of 309

Czech Republic What s Typical? Term Negotiable, typically 3 5 years Break Negotiable Renewal Negotiable Rent basis Net Free rent 1 month per year of lease typical Escalation Indexed annually Security 3 6 months typical Fit-out Landlord contribution negotiable. Tenant broker Tenant pays Subletting Normally allowed Transparency Limited CBRE Offices Prague +420 224 814 060 For More Information About CBRE Czech Republic http://www.cbre.cz/cz_en About CBRE Czech Republic Research http://www.cbre.cz/cz_en/research/recent _reports For Local Market Reports http://gkc3.cbre.com/search/search.aspx Contact Jana Prokopcová Head of Research +420 221 711 050 jana.prokopcova@cbre.com Katarina Wojtusiak Director, Head of Tenant Representation and Global Corporate Services +420 221 711 014 katarina.wojtusiak@cbre.com Czech Republic Page 78 of 309

LEASE LENGTH Term Leases are typically for 3 5 years, sometimes up to ten years, with fixed rentals and predetermined annual indexations. Termination or Break An option to terminate is negotiable, and may provide for a penalty if exercised. Renewal An option to renew is negotiable. SPACE MEASUREMENT Space Measurement Landlords most often quote gross lettable area, although they sometimes quote the net lettable area instead or in addition. The most generally accepted standard for measurement of gross lettable and net lettable areas is German GIF Guidelines. Definitions Carpetable Area: Area available for office use, excluding toilets. Net Lettable Area: Measures from internal wall to internal wall, includes toilets, but excludes columns and vertical penetrations. The net lettable area is typically about 4% greater than the carpetable area. Gross Lettable Area: Includes net lettable area, plus add-on factor (typically 4 10% for a Class A building in Prague) plus common areas such as toilets and corridors shared by more than one tenant, which are not included in the add-on factor. OCCUPANCY COSTS Rent Rent Quoted: Rents are quoted net in EUR/sqm/month, or occasionally in Czech koruna (CZK) per square meter per month. Rent Payable: Quarterly or monthly in advance. Free Rent: Free rent is typically up to one month free for each year of the lease. Included in Rent: The landlord usually pays for external and structural repairs. Rent Escalation: Usually indexed, based on the Harmonized EUR index. Fixed rent increases can sometimes be agreed to and stipulated in the lease. Service Charge Service charges represent tenant s contribution towards the cost of maintaining common areas and services. Service charges cover: Operating, maintaining, cleaning, and repairs of lighting, air conditioning, plumbing, drainage, sewerage, fire prevention, elevators and telecommunication systems in the building, electricity in common areas, building security, etc. Property Tax, Real Estate Tax: Property tax in the Czech Republic is nominal. The landlord pays the tax and recovers it via service charges. Building and Property Insurance A typical service charge in a Class A building in Prague is around EUR 3.8 4.5/sqm/month. Service charges are usually on an open book basis and recalculated annually according to actual cost. Czech Republic Page 79 of 309

Taxes Property Tax: The landlord pays the property tax and recovers it via service charges. Value Added Tax (VAT): The Czech Republic has VAT rates of 20% and 14%. Most charges, including rental charges, service charges, purchases of furniture and equipment, etc., are subject to 20% VAT, payable with each invoice. A few minor elements of service charges (such as water consumption) are subject to 14% VAT. Utilities Electricity and Air Conditioning: Electricity in the leased area is usually metered. The tenant pays for actual consumption, generally including electricity for air conditioning or air-cooling, sometimes as part of the service charge. Telephone Lines: The landlord provides telephone lines through its switchboards or the telecom supplier provides them. The tenant pays either the landlord or supplier according to usage. Telecommunication Charges: The tenant usually must arrange and pay for telecom services directly with suppliers. Fit-Out Landlord Work: The landlord usually provides carpeting (or contribution towards carpeting), suspended ceilings, ceiling lighting, raised floors, perimeter trunking, etc. Inclusion of interior partitions is negotiable. Tenant Work: The owner usually allows the tenant to do fit-out using the tenant s architects, engineers, and contractors. The lease contract usually specifies that the landlord may not unreasonably withhold its approval of the tenant s fit-out. Tenant Work Cost: Fit-out costs for Class A or Prime buildings in major cities normally range from 250 500 EUR per sqm including construction, furniture, wiring, design fees, etc. Restoration The tenant is usually allowed to vacate the premises in a condition of normal wear and tear, but this is negotiable. The landlords of Class A buildings usually require restoration of fit-out by the tenant. Security Deposits and Guarantees This is usually a cash deposit or a bank guarantee for 3 6 months rent, plus service charge and VAT. In addition, a parent company guarantee is sometimes required. Car Parking Parking spaces are allocated based on a ratio, which ranges from one lot (parking space) per 50 sqm of space leased in Prague s Periphery to one lot per 200 sqm of space leased in the city center. Tenants pay extra for parking spaces, commonly up to 100 EUR per space in the periphery, and up to 250 EUR per space in the city centre. Other Occupancy Costs The tenant pays directly for third-party insurance, insurance for rented premises and its contents. TRANSACTION COSTS Agency Fees Separate agents commonly represent tenants and landlords, and each party pays its agent or agents a negotiable fee, typically 8 14% of the average annual rent, depending on the value of the lease. If the agent represents a tenant, the fee is split commonly into fixed part plus cost-saving part. For subleases, the sublandlord pays its agent a fee. Reputable real estate agents rarely take fees from both the landlord and the tenant. Legal Fees The landlord s solicitors normally prepare the lease agreement. Each party pays its lawyer s fees. Other Transaction Costs No stamp duty applies. Czech Republic Page 80 of 309

OTHER LEASE PROVISIONS Standard Lease No standard lease exists. Right to Sublet Subleasing is normally allowed, subject to the landlord s reasonable written consent, sometimes with restrictions. Option to Expand & Right of First Refusal Late Delivery by Landlord Options to expand and the right of first refusal are negotiable. Penalties for late delivery vary widely and are negotiable, as specified in the lease. Typically, the landlord will agree to pay two times the daily rent for late delivery. Holdover by Tenant Typically, the tenant pays two times the daily rent for holding over after lease expiration, as specified in the lease. Signage and Naming of Building The major tenant in a building generally has naming or signage rights if the building provides such a right, but this is negotiable. OFFICE LEASING MARKET Market Practices Prague, the business and political capital of the country, has Czech Republic s most developed real estate markets in all sectors. Office markets in regional cities, such as Brno, Ostrava and Plzen, are being developed. Transparency Data is generally available for recent transactions in Prague, including tenant names, square meters, building name, and location. Transparency outside of Prague is still limited. Building Classification This system of classification applies throughout the Czech Republic, although almost all Class A buildings are located in major cities. Class A All of the following hard criteria must be met: (1) Modern cable management: either raised floors, or suspended ceiling, or suspended ceiling with flexible pole, or under floor cabling, or compartment trunking. (2) Modern air handling system: including VAV, 4-pipe fan coil, 2-pipe fan coil and cooler beam system. (3) Secure dedicated parking: CBD 1:100, central 1:75, non-central and periphery 1:50. (4) High-quality standard finish. (5) 24-hour access and security. Five of the seven soft criteria must be met: (1) High speed modern lifts. (2) Clear ceiling height of at least 2.65 m. (3) Prestige / quality reception. (4) Quality finish to work areas. (5) Flexible partitioning or moveable walls. (6) Double-glazed windows or anti-glare glass. (7) Services in the building or immediate vicinity: e.g., restaurant, shops, post offices, dry cleaners. Class B Similar standard of design and finish as for Class A. Reduced services. Partial air handling system. Quality of building design and materials inferior to those of Class A. Ratio of dedicated car parking to the area occupied is lower than for Class A. Class C Generally un-refurbished, Soviet-era buildings. Czech Republic Page 81 of 309

PURCHASE AND SALES Market Practices Very few companies own the office premises. A 3% transfer tax is applicable on asset sales of property, payable by seller. Information contained herein, including projections, has been obtained from sources believed to be 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 confirm independently its accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of the CBRE Global Chief Economist. Czech Republic Page 82 of 309

Denmark What s Typical? Term Indefinite Break After non-termination period ends Renewals Automatic until tenant gives notice Rent basis Net Free rent Rare. 1 9 months in weak markets Escalation Indexed annually, usually with 2 3% minimum Security 6 months bank guarantee is common Fit-out Landlord pays for standard fit-out Tenant broker Tenant pays Right to sublet Usually allowed Transparency Limited Language Most leases use standard language Measurement Strict rules for measuring space CBRE Offices Copenhagen +45 7022 9601 Aarhus +45 7022 9602 For More Information About CBRE Denmark http://www.cbre.dk/dk_en About CBRE Denmark Research http://www.cbre.dk/dk_en/research For Local Market Reports http://gkc3.cbre.com/search/search.aspx Contact Nils Thulstrup Senior Director, Global Corporate Services +45 3544 0925 nils.thulstrup@cbre.com Robin Rich Head of Research +45 3544 0923 robin.rich@cbre.com Denmark Page 83 of 309

LEASE LENGTH Term A lease continues until terminated by either the tenant or the landlord, with no need to renew the lease contract. Termination or Break Parties agree to an initial term, whereby neither can terminate the lease. Typically, this non-termination period is much longer for the landlord than for the tenant. The non-termination period is typically 3 5 years for the tenant; 5 10 years for the landlord. For new construction, however, the non-termination period is typically 10 12 years for the tenant; 15 20 years for the landlord. Although negotiable, it is generally more difficult for a tenant to negotiate a shorter nontermination period with a large lease and in a new building, because landlords have more invested in large new buildings. Once the initial period of non-termination for the tenant ends, the tenant can terminate the contract with notice to the landlord. The number of months of required notice is negotiable. Six months notice is common, although the trend in 2011 is for a longer notice period: up to 18 months for large occupants. Some legal restrictions apply to lease termination. The Danish law says that the tenant can terminate the lease according to the agreed term of notice, except if it is fixed for a specific period of time. The landlord can only terminate the lease according to the specific circumstances specified in the Danish Commercial Lease Act. After the non-termination period, if the market declines, a tenant can get the rent reduced to the current market rate. Companies like CBRE provide the market rate information. The law provides that the rent reductions take place in steps over five years, although landlords and tenants can agree to waive this provision and use a different rent reduction schedule. Tenants can go to court if parties cannot agree on these issues. A landlord can evict a tenant only if the landlord can show it needs the space for its own use, and after the nontermination period for the landlord has expired. Renewal There is no need to renew the lease contract. SPACE MEASUREMENT Space Measurement The Commercial Lease Act provides strict rules for the measurement of the usable and rentable areas. Parties have the option of engaging, or not engaging, a specialized surveyor, licensed by the Danish government, to measure the space. Because the measurement process can be costly, parties do not always use a licensed specialist. When the licensed surveyor measures the space for a transaction, it is noted in the lease contract. Definitions Usable area: Usable area equals the floor area exclusively occupied by the tenant plus area occupied by exterior walls + area occupied by walls adjoining common areas + 50% of walls separating space from other tenants on multi-tenant floors + tenant s share of toilets. Toilet areas located inside a tenant s space are included in the usable area. When more than one tenant shares toilets, the area occupied by toilets is allocated among the tenants on a pro rata basis. Rentable area: Rentable area equals usable area plus a percentage of common areas. The common areas include stairs, corridors, and elevator shafts. Efficiency A typical ratio of the area exclusively occupied by tenant to rentable area in a Class A Copenhagen building is 80 85%. Denmark Page 84 of 309

OCCUPANCY COSTS Rent Rent Quoted: Landlords usually quote net rental in Danish kroner (DKK) per rentable square meter per year. The Danish kroner is closely tied to the value of the Euro, allowing for small fluctuations. Rent Payable: Rent, including escalation and service charges, is typically payable monthly or quarterly in advance. Base Rent is actual rent not including escalation and service charges. Free Rent: Normally, free rent periods are not a common practice. In soft markets, such as the market in 2011, tenants may negotiate 1 9 months free rent on a normal lease contract. Rent Escalation: Rent usually increases annually in proportion to the increase in Danish Net Price Index, published by Danmarks Statistik, usually with a minimum increase of 2 3%. Service Charges The tenant pays for a proportionate share of service charges (i.e., insurance, common electric, maintenance, cleaning, security, management fees, property tax, etc.) as specified in the lease. Service charges are adjusted every year to match the actual cost. Legislation allows a landlord to increase the service charge if property taxes or other taxes increase. Service charges and taxes usually add 10 20% to the base rent. Taxes Property Tax: Property taxes are included in the service charges. Value Added Tax: VAT at 25%, flat on everything, is payable on rent, service charges, and other recoverable expenses that are in addition to service charges, such as heating, water and electricity, unless the tenant pays them directly. Some owners register their buildings for VAT and some do not. If the building is registered, the tenant pays VAT and can deduct paid VAT from incoming VAT. A developer who owns a building is likely to register it for VAT. However, banks do not register buildings they own for VAT because banks in Denmark do not pay VAT and do not charge VAT on costs. They charge higher rent instead, typically about 25% more, because they have all the expenses including VAT. This causes a problem if a sublet is in a bank-owned building because the 25% VAT is not deductable. Utilities The tenant normally pays consumption costs such as water, heating and electricity, separately and directly to the utility company based on direct meters. Water and electricity are highly taxed, and their costs are high by international standards. Fit-Out Fit-out is included in rent. The landlord usually includes a basic fit-out, including IT wiring, for an average capacity requirement in base rental rate. If the tenant requires above-standard fit-out or other extras, the tenant usually pays the added cost as higher rent, and sometimes pays for extra costs separately. The scope is negotiable and included as part of the lease agreement. Restoration Most contracts require the tenant to restore the premises to the condition in which it was received. Some allow for reasonable wear and tear. Exit costs are often negotiable. When the tenant is leaving, the restoration (reinstatement) costs are calculated, but normally the reinstatement work is not done. The landlord typically refits out the space for the incoming tenant. The calculated reinstatement cost is an estimate and is always negotiable. Security Deposits and Guarantees The tenant usually pays a deposit, equivalent to 3 6 months rent, normally as a bank guarantee, but in soft markets, most landlords prefer six months rent in cash. Landlords prefer a cash deposit because they can use the money as capital, and do not have to maintain it as a deposit. For larger premises and longer leases, landlords may require a parent company guarantee in addition to a security deposit. Landlords rarely require personal guarantees. Denmark Page 85 of 309

Car Parking Parking spaces are sometimes included in the rent. In prime or busy city areas, the tenant usually pays for parking in addition to rent, if parking is available. In larger cities, parking is very limited in downtown areas, and it is often allocated to executives only. Good public transportation is available in Copenhagen and other larger cities. Many employees ride bicycles to work. Copenhagen parking costs can range from 6,000 to 45,000 DKK per car per year, depending on location, and whether spaces are outdoors or in a parking garage. Other Occupancy Costs There are no other significant occupancy costs. TRANSACTION COSTS Agency Fees Tenant representation is not common, but a diligent tenant should consider hiring a tenant representative broker. New Lease: If a broker represents a tenant, the tenant typically pays a commission that is 15% of the first year s rent, including service charges. When CBRE represents a tenant, there is a base fee of 8-10% of the first year s rent plus an incentive fee, based on calculated savings achieved in negotiation with the landlord. The landlord also typically pays 15% of the first year s rent (including service charges) to the landlord s listing broker. If CBRE is the broker for both the landlord and the tenant, then normally the landlord pays a single 15% fee to CBRE. Sublease: Sublessors typically pay a commission of 15% of the first year s rent (including service charges) to the listing broker. If a second broker brings the tenant, the brokers share the 15% commission: typically, 70% to the listing broker, and 30% to the tenant s broker. Legal Fees Tenants generally employ and pay their lawyers to review the lease draft that the landlord provides, although CBRE lawyers typically review leases and are permitted to give legal opinions to their clients. Legal fees in Denmark are usually low for this service, since most lease agreements are short and simple (10 15 pages), as leases are highly regulated. Other Transaction Costs There are no other significant transaction costs. OTHER LEASE PROVISIONS Laws and Practices The Commercial Lease Act, called Erhvervslejeloven, regulates commercial leases and addresses such issues as use, maintenance, termination, move-out, and rent payment. Standard Lease Most leases include standard lease language that is generally known and accepted. However, lease conditions are always negotiable so that leases can be modified. However, some restrictions apply to lease termination. The Danish law says that the tenant can terminate the lease according to the agreed term of notice, except if it is fixed for a specific period of time. The landlord can only terminate the lease according to the specific circumstances specified in the Danish Commercial Lease Act. CBRE is using the Danish Property Federation standard lease agreement, amending it to follow all the particular terms agreed between the landlord and the tenant. Right to Sublet Subletting is usually allowed in the lease, with landlord approval. If the subtenant is a related company, the landlord cannot unreasonably withhold consent. Lease provisions that allow the landlord to recapture are rare. Option to Expand & Right of First Refusal An option to expand is rare, but a tenant may often negotiate a first refusal for other space in the building. Denmark Page 86 of 309

Late Delivery by Landlord Normally, a penalty is imposed based on a multiple of rent. For a new building, terms of such a penalty are covered in the lease, when the hand-over date is critical, because a new building has a greater risk of being delayed than an existing one. Holdover by Tenant Holdover usually incurs an agreed penalty payment. This is not in the law and not usually addressed in the lease, but it can be agreed to and be a part of the lease contract. Such an agreement is rare because a normal lease contract in Denmark is continuous until notice has been given by tenant or landlord. Signage and Naming of Building The landlord usually allows some moderate signage internally and externally. In Copenhagen, city authorities must approve external signs. Often landlords and tenants work together to get approval. On older and historical buildings, external signage is usually limited to the door, intercom plate, and a placard in the lobby. Other Lease Provisions Building Security: Usually, basic building security is included, and the tenant pays for any additional measures. Basic building security usually includes an alarm system but not a guard. It is not typical to have a guard or concierge, even for a large multi-tenanted CBD building. OFFICE LEASING MARKET Transparency For Copenhagen and elsewhere, transaction comparables which identify tenants, square meters and rents are generally difficult to obtain. Brokers usually have access only to second-hand information. However, increasing membership in international property bodies such as the Royal Institution of Chartered Surveyors has increased focus on the lack of transparency. Some CBRE brokers belong to the Royal Institution of Chartered Surveyors, and all work under its rules. CBRE has been active in organizing a quarterly research forum for enhancing market transparency regarding both sales and leases taking place in the market. Building Classification No official building classification system exists in Denmark, but terms such as Prime, Grade A, B, etc., may be used to describe overall building quality. PURCHASE AND SALES Market Practices Property tax is 0.06% 2.4% of the official real estate value depending on municipality. Municipalities may also choose to tax the value of commercial buildings by up to 1%. Agency Fees The broker s commission is typically 1 3% of the purchase price, depending on the market situation. Other Transaction Costs Property transfer tax: Real estate transactions are taxed at 0.6% of purchase price as stamp duty. Information contained herein, including projections, has been obtained from sources believed to be 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 confirm independently its accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of the CBRE Global Chief Economist. Denmark Page 87 of 309

Finland What s Typical? Term Break Renewals Rent basis Free rent Escalation Security Fit-out Tenant s broker Right to sublet Transparency 3 5 years (until landlord or tenant breaks with indefinite leases) Negotiable Negotiable Net or gross Only in weak markets or if tenant does fit-out Various methods: review to market, fixed, capped, etc. Typically 3 months or more Tenant usually pays Tenant pays Common Low CBRE Offices Helsinki +358 9 2516 6304 For More Information About CBRE Finland http://www.cbre.fi About CBRE Finland Research http://www.cbre.fi/fi_en/research For Local Market Reports http://gkc3.cbre.com/search/search.aspx Contact Erik Lönnfeldt Head of Corporate Services, Finland +358 10 320 1222 erik.lonnfeldt@cbre.com Finland Page 88 of 309

LEASE LENGTH Term Indefinite lease terms are common in all property types. Lease agreements for smaller occupiers are often valid until further notice, with 3 or 6 or 12 months prior notice required. Fixed term leases, typically 3 5 years, are common with large occupiers, international companies, and with most companies taking space in new developments. Fixed terms longer than five years apply mainly with single tenancy or new developments. Termination or Break A common practice is to agree on a fixed-term after which the lease continues automatically for an indefinite period until one of the parties wishes to terminate it. Normally, tenants have no other break options and no options to renew. However, with fixed lease terms and single tenancies, leases including break and/or renew options have become more common, especially with larger international occupiers. SPACE MEASUREMENT Space Measurement A tenant pays rent on the leasable (usable) office area. Shared areas costs are normally allocated proportionally according to the amount of space each tenant occupies. Shared meeting rooms, especially in business parks, are normally charged according to usage. Definitions Leasable office area includes interior not load-bearing partitions, bathrooms, entrances and other common areas. Leasable area measures to the inside of exterior walls. It excludes mechanical space, vertical penetrations, and exterior walls. Finland Page 89 of 309

OCCUPANCY COSTS Rent Definitions Gross Rent: Rents in Finland have been traditionally quoted as gross rents, especially for leases in multi-let buildings. Gross rent includes insurance, property taxes, and most service expenses, such as heating, water, waste disposal, electricity, cleaning of common areas of the building and possibly ground fees. Net Rent: Also called base rent. Net Rent excludes maintenance and user services charges. Rents in business parks and in new developments are typically quoted as net rent. Double Net Rent: The tenant pays for all occupancy costs excluding major repairs, property taxes, and property insurance. This applies when a tenant occupies an entire building. Triple Net Rent: The tenant pays for all occupancy costs including major repairs, property taxes and property insurance. This applies when a tenant occupies an entire building. Rent Rent Quoted: Rent is quoted in EUR per sqm per month. Rent Payment: Tenants generally pay rent monthly in advance on the second day in the month. Free Rent: Typically, landlords grant no rent-free periods unless tenants contributes to fit-out. However, landlords are increasingly using rent-free periods to attract occupiers due to the oversupply of good quality office space as a result of the economic downturn and the large volume of new office completions in Helsinki Metropolitan Area. Rent Escalation: The following methods are used: (1) Cost-of-Living Index: Annual adjustment based on cost-of-living index is typical when the lease term is at least three years or valid until further notice. (2) Review to Market: In addition to cost-of-living index, parties may agree to rent review to market after 3rd or 5th years. (3) Fixed rent, (4) fixed increase, or (5) combination of CPI and minimum increase. Service Charges Service Charge= Maintenance charge + user services charges. Maintenance Charge: Charges for operating and making minor repairs to the building. User Services: Also called extra services. Services that a tenant can select: mailing, operator, reception, cleaning, security, meeting facilities, catering, restaurant, secretarial, Information and Communication Technologies (ICT), office supplies and fittings services etc. User services are most common in business parks. Taxes Property taxes: For traditional leases in multi-tenant buildings property taxes are included in the rent. In new developments, in business parks and in single-tenant buildings where leases are triple net, the landlord passes property taxes (and other charges) on to the tenant as a part of the maintenance charges. Value Added Tax: VAT is paid and is recoverable. The standard rate is 23%. Leases of land and buildings are exempt unless registered for VAT. Many landlords register for VAT if the tenant is liable to pay VAT, in order to deduct it from investments and maintenance costs. Sales of real property are exempt. Utilities Normally, the tenant pays for electricity, cleaning of the premises, and in some cases, for water. Tenant Improvements Landlord Work: Negotiable. Suspended ceilings, ceiling lighting, and restrooms can be either the landlord or tenant s work, as negotiated. Tenant Work: Usually the tenant needs the landlord s permission before making improvements. The landlord may use its supervisors for the works. Tenant work costs for Class A or Prime buildings in major cities normally range between 100 1000 EUR per sqm including construction, furniture, wiring, design fees, etc. Restoration At lease termination, the tenant is responsible for restoring the premises to its original condition, allowing for fair wear and tear, unless otherwise agreed. Finland Page 90 of 309

Security Deposits and Guarantees The deposit normally is at least three months rent excluding VAT, but is negotiable. Car Parking Parking may be included in the lease or rented separately. Other Occupancy Costs Internal Repairs: The tenant usually pays for repairs to the premises. Building Security: Building security is usually included in the rent, but additional security bears extra-cost. Reception on the ground floor of multi-tenanted buildings Additional services in business parks. TRANSACTION COSTS Agency Fees The landlord has traditionally paid the agency fee. However, tenant representation is increasingly common, especially with international and established occupiers. In this case, the tenant pays its agent a fee. For a new lease or sublease, the landlord and the tenant (when represented) typically pay their respective agents a fee of 12.5 17% of the first year s rent (gross rent or net rent and service charge, car park rent etc.). Due the financial crisis of 2008-2011, in some cases fees have been up to 30%. Fees are slightly higher for smaller properties, and may be higher for long leases (i.e., of 3 years or more) than for short leases or leases valid until further notice. In case of tenant representation, other methods (e.g. fixed fees or share of savings) can also be used. Other Transaction Costs Legal advisory costs often apply. OTHER LEASE PROVISIONS Laws and Practices The legal framework for lease agreements in Finland guarantees both the tenant s and the landlord s rights, so parties concentrate mainly on the commercial terms (which vary significantly from one lease to another), often without negotiating extensively the legal terms of the lease. Standard Lease Third parties produce standard lease templates, used mostly for small leases by small users without consultants and without in-house real estate expertise. Right to Sublet Subletting has become more common after the financial crisis, when demand for premises weakened. Normally, the landlord must approve the subtenant, but this is usually stipulated in the master lease. Holdover by Tenant If a tenant holds over, the penalty is negotiable and determined by the lease agreement. For fixed and further notice leases, the penalty is often the next month s rent. Signage and Naming of Building Negotiable. Exterior signage requires the owner s permit, and normally the city s as well. Finland Page 91 of 309

OFFICE LEASING MARKET Transparency Good historical data of rental levels by submarkets nationwide and information about property returns and operational costs is available. Information on actual leases is not collected by any public authority. Consultants collect some actual lease information, but rarely share it with clients, because it is considered confidential in Finland. Building Classification Although no broadly standardized system exists in Finland, ratings of A, B and C are well understood. PURCHASE AND SALES Market Practices Traditionally, larger companies in Finland have been owner-occupiers, although companies increasingly have disposed of their assets through sale and leaseback arrangements over the past years. There are still companies that own at least some of the premises which they occupy. Landmark buildings, such as corporate headquarters, are sometimes considered better to be kept on a company s balance sheet. Many properties are held as (mutual) real estate companies with one (or several) owners. Other Transaction Costs Property transfer taxes of 1.6% for shares and 4% for property apply. If a property is owned by a (mutual) real estate company, capital transfer taxes are payable on the transaction of company shares. Information contained herein, including projections, has been obtained from sources believed to be 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 confirm independently its accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of the CBRE Global Chief Economist. Finland Page 92 of 309

France What s Typical? Term 3/6/9 lease Break Normally after 3rd and 6th years Renewals Statutory right at end of 9th year Rent basis Net Service charges Cannot exceed actual costs Escalation Indexed annually Free rent 1.5 2 months per firm year of lease in 2012 Security Typically 3 months or more Transparency High level of transparency (some values may be kept confidential) Fit-out Tenant usually pays but incentives (including free rent period and contribution to fit-out works) are granted by landlords depending on market conditions Tenant broker Tenant pays Subletting Rare, rare due to restrictive conditions Transparency High (some values may be kept confidential) Regulation Leases are highly regulated Brokerage fee Broker can be paid from both parties. Mandate agreement Required: required by law Efficiency Typical ratio of carpetable area to net lettable area in a Class A building in Paris is 60-70% CBRE Offices Paris (Headquarters) +33 1 53 64 00 00 Lyon +33 4 72 83 48 48 Marseille +33 4 96 11 46 11 Aix-en-Provence +33 4 42 60 01 31 Lille +33 3 20 21 88 50 Toulouse +33 5 62 72 44 60 Bordeaux +33 5 56 90 52 30 Other Offices in Paris Region: Paris (rue Guersant), Bagnolet, Montreuil, Montrouge, Saint-Denis, Neuilly-sur-Seine Affiliate Offices: Annecy, Avignon, Besançon, Blois, Bourgoin-Jallieu, Brest, Caen, Chambery, Clermont-Ferrand, Dijon, Grenoble, Le Havre, Limoges, Metz, Montpellier, Mulhouse, Nancy, Nantes, Nice, Nîmes, Rennes, Rouen, Sophia Antipolis, Strasbourg, Tours, Vannes For More Information About CBRE France http://www.cbre.fr/fr_en About CBRE France Research http://www.cbre.fr/fr_en/etudes For Local Market Reports http://gkc3.cbre.com/search/search.aspx Contact Aurélie Lemoine Head of Research France +33 1 53 64 36 35 aurelie.lemoine@cbre.fr Giles Bateman Director of Global Corporate Services France +33 1 53 64 30 06 giles.bateman@cbre.fr France Page 93 of 309

LEASE LENGTH Term The French commercial lease has a minimum length of 9 years, which the tenant can break every three years unless firm periods were negotiated. Hence the umbrella term of the 3/6/9 lease. Termination or Break The tenant has the right to break every three years, unless parties agree to a firm contract period of six or nine years. Landlords achieve such firm contract periods in tight markets, in high-quality buildings, in build-to-suits, and in exchange for free rent or fit-out contributions. To break, notice must be delivered by a bailiff. Renewal Renewal: Office tenants have a statutory right to renew at lease end at market rents. This right to renew cannot be waived. However, the tenant must follow formal procedures to renew, or may suffer expensive consequences and lose the right to renew the lease. Renewal rent: If the parties agree on a new rental rate, the lease extends for nine more years with the same conditions as the old lease. If the tenant accepts the conditions but disputes the new rate, the tenant can remain at the old rent, and the landlord can get a judicial decision as to the renewal rate from the Higher District Court (Tribunal de Grande Instance). The amount the court sets is retroactive to the effective date of the lease renewal. If a tenant rejects the new rental rate, then pursuant to service of notice, the tenant normally vacates the premises without compensation. The landlord also has a right to deny renewal and compensate the tenant. The court generally fixes the amount, using an expert witness whose opinion is usually binding. The sum can be considerable and can include the tenant s future move costs, fit-out costs, administrative costs or the payment of a double rent should the tenant pay simultaneously for two rents. However, if the tenant fails to fulfill its lease commitments, the landlord is entitled to refuse to renew without paying indemnity. Other Lease Options Temporary Lease for Specific Situations (Convention d Occupation Précaire): This allows the tenant to temporarily occupy the premises. It uses case law, is exempt from the regulations that govern a 3/6/9 lease, gives the tenant less legal protection than a 3/6/9 lease, and is rarely used. The agreement must specify the reasons for a shorter term. Short Term Lease / Derogatory Lease (Bail de Courte Durée / Bail Dérogatoire): This type of lease is commonly used and cannot exceed 24 months; it also protects a tenant less than a 3/6/9 lease. This lease may be entered into when both parties agree not to be confined by the terms and obligations of a commercial lease. The reasons for a derogatory lease do not need to be specified; such a lease is often used as a trial period by both parties before a standard commercial lease is signed. Professional Lease (Bail Professionel): The Professional Lease is a six-year lease contract between the landlord and members of the liberal professions. The Corporate Tax Code and the Social Security Code determine what businesses qualify as liberal professions. Liberal professionals provide intellectual services. They include lawyers, medical doctors, kinesiotherapists, architects, chartered accountants, translators, etc., irrespective of company size and number of employees. This lease does not grant the right of renewal to the tenant but gives the tenant the right to terminate the lease at any time with six months notice, whereas the landlord is allowed to terminate it only after six years. Members of the liberal profession are free to contract a standard commercial lease (Article 57A of December 23, 1986) to benefit from its longer duration (9 years). SPACE MEASUREMENT Space Measurement Four methods are used for space measurement but the Net Lettable Area is the most commonly used method by tenants, lardlords, valuers and agents. The Net Lettable Area (Surface Utile Nette, abbreviated as S.U.N.) is a metric used for the calculation of the floor area in workspaces (offices, laboratories, meeting rooms, etc.). France Page 94 of 309

Definitions Net lettable area is the most common measurement used in leases. It includes usable office area, circulation, restrooms and an allocation of common areas, and excludes vertical circulation. Efficiency A typical ratio of carpetable area to net lettable area in a Class A building in Paris is 60 70%. OCCUPANCY COSTS Rent Rent Rent Quoted: Office rents are quoted as net rental in EUR/sqm/year. Rent Basis: Net + service charge Rent Payable: Rent is normally paid quarterly, in advance. Monthly or annual payment is rare and must be stipulated in the lease. Tenants usually pay by check or by electronic money transfer. The tenant generally pays additional rent for amenities such as an inter-company restaurant, car parking spaces, basement storage areas, etc. Free Rent: In 2012, free rent ranges from 1.5 2 months per firm year of the lease, depending on market conditions and the length of the firm contract period. Rent Escalation Rent is indexed most commonly annually based upon the Cost of Construction Index, produced by the INSEE (Institut National de la Statistique et des Études Économiques), which typically increases 2 5% per year, occasionally more, with a market review at the end of the ninth year when the lease ends. Indexation is usually annual, although parties sometimes agree to semi-annual or quarterly indexation. Parties occasionally use another index, which must be specified in the lease and must be related to the tenant s business activity. For example, a software tenant could agree with a landlord on rent increases based on an index of economic trends of the IT sector. The new indexation system from the INSEE, called ILAT (Indice des Loyers d Activités Tertiaires) should become available in 2012, allowing parties to use either index. The ILAT index may eventually replace the INSEE index. However the values have not yet been published. The chosen index must be clearly indicated in the contract. Service Charges The service charge is payable quarterly in advance, with a reconciliation statement at year-end. The amount varies according to amenities provided. Landlords are not permitted to charge more than the actual cost of services. The landlord normally pays for building insurance, external repairs and repairs to common areas. The landlord recovers the cost of building insurance and common area repair from the tenant as part of the service charge. Service charges typically range between EUR 70 80/sqm/year in a high-rise La Défense building, EUR 50 75/sqm/year for a Prime Paris CBD building; and lower outside of the Paris region. France Page 95 of 309

Taxes VAT Value Added Tax (VAT): In 2011, 19.6% VAT is paid on rent, service charge, design fees, and construction costs. Office Tax (Taxe sur les Bureaux) This tax applies to the Paris Region only and is levied annually. The landlord pays it and the tenant usually reimburses the landlord. The amount of tax varies by district. Some properties are exempt, including office space smaller than 100 sqm, properties located in zone de re-dynamisation urbaine or in a zone franche urbaine and properties used by associations, social, educational or cultural organizations. Full tax rates for offices are: District 1: Paris and Hauts-de-Seine: EUR 16.71/sqm/year. District 2: Some municipalities of Seine St-Denis, Val-de-Marne, Essonne, Yvelines and Val d Oise: EUR 9.91/sqm/year. District 3: Rest of Paris Region: EUR 4.74/sqm/year. Land Tax (Impôt Foncier) The landlord pays the Land Tax annually and the tenant usually reimburses the landlord. The level of this tax varies according to specification (level of equipment in the building, i.e., elevator, facilities, etc.) quality, and the location of the property. The Land Tax ranges from EUR 6-49/sqm/year. Contribution Economique Territoriale ( CET ) Since early 2010, occupiers have been subject to the CET (replacing the Taxe Professionnelle), which includes the following taxes: Real Estate Tax: CFE (Cotisation Foncire des Entreprises), based on the rental tax value of used buildings (local tax rate) Corporate Tax: CVAE (Cotisation sur la Valeur Ajoutée des Entreprises), based on the corporate added value (national tax rate at 1.5%), excluding companies with an annual turnover below EUR 152,000. Utilities Electricity: Electricity used in common areas is included in charges paid by the tenant. For the electricity used in the area occupied by the tenant, the occupier must sign a contract with an electricity supplier and pay the electricity supplier directly. Water: Water used by the tenant for normal office use is included in the service charges that the tenant pays. Fit-Out Landlord Work: The landlord normally delivers new space with suspended ceilings, ceiling lighting, carpet and restrooms. In addition, landlords generally provide some fit-out allowance, except in very strong markets. Tenant Work: The tenant undertakes and pays for the remaining fit-out, usually subject to landlord approval. Landlords do not build space at landlord cost and recover the costs in the rent. Cost of Tenant Work: Fit-out costs for Class A or Prime buildings in major cities normally range from EUR 400 600/sqm, and can include construction, wiring, design fees, etc. Furniture benchmark costs are generally around EUR 1500 per workstation. Restoration Most leases require the tenant to return the premises in a perfect state of repair, and give the landlord the right to require that the premises be restored to delivery condition. Negotiations usually exempt normal wear and tear. France Page 96 of 309

Security Deposits and Guarantees Rent Deposit Landlords usually require a three-month cash rent deposit at lease signature from all tenants, independent of their financial strengths. The landlord reimburses the cash deposit at lease end, although no law addresses a deadline for reimbursement. A financially strong tenant, known as a tenant with a strong financial covenant, can sometimes replace the deposit with a parent company guarantee or a bank guarantee. A weak tenant usually pays the deposit in cash and a first demand bank guarantee. Other guarantees issued by a parent company or a bank guarantee (often first demand) can also be required. Additional Guarantees that Landlord May Require In addition to a cash rent deposit, French landlords usually require a bank guarantee or corporate guarantee at lease signature. Bank Guarantee A bank guarantee is customary. It is a unilateral contract in which a bank guarantees to reimburse the occupier s debt. Obtaining a bank guarantee can be time-consuming, so tenants should contact the bank as early as possible. The bank can often require a specific amount of funds set aside as collateral. There are two types of bank guarantees: a Standard Bank Guarantee and a First Demand Guarantee. A Standard Bank Guarantee requires legal action to release money. A First Demand Guarantee is an automatic option for the landlord to have money released, without a court action. A bank, present in France, guarantees a sum of rent, and often service charges, taxes, etc.; usually on a rolling basis for the duration of the lease. A First Demand Guarantee is the most common form of guarantee in 2010. Corporate (Parent Company) Guarantee A corporate guarantee is also known as a parent company guarantee. The guarantee can vary from 1 3 years gross rent, depending on the financial strength of the tenant. This is less common than a bank guarantee and may apply when a local entity is 100% owned by a major foreign company. French landlords only accept this type of guarantee for well-established companies. Calling on such a guarantee in a foreign country can be difficult and costly. Car Parking Many office buildings are not equipped with private parking spaces, especially in dense urban areas. Approximately 50% of rents for parking space in 2011 ranged between EUR 1000 1500/unit/year. However, these can exceed EUR 2000 2500/unit/year in business districts. Rents have been stable since 2005. Studies published by ARSEG (Association des Directeurs et responsables des Services Généraux) indicate that the average ratio of parking space per workspace ranges from 0.2 0.6. In the Paris Region this ratio is 0.37, and is lower in Paris and La Défense. Other Occupancy Costs The tenant pays for insurance and for repairs to tenant areas. TRANSACTION COSTS General Transaction Costs Most users find premises via brokers, although not always on an exclusive basis. Most international companies, and more recently, French companies, use brokers on an exclusive basis. In France, brokers can be paid by both the landlord and the tenant on a single transaction. Non-exclusive agents typically favor buildings for which they represent the landlord, to collect two fees. CBRE Global Corporate Services acts exclusively for occupiers. France Page 97 of 309

Agency Fees These rates vary according to market conditions. New lease: 30% of one year s rent. The landlord and the tenant normally both contribute. The breakdown depends on market conditions. Sublease: same conditions but rules depend on market conditions and subleasing related constraints. (See Right to Sublet section.) Lease renewal: no fixed rule; usually based on performance. Legal Fees Legal fees depend on the need of information and fees are paid to legal firms which provide the services. Other Transaction Costs No other significant transaction costs, such as legal fees, stamp duty, registration fees, etc., apply. OTHER LEASE PROVISIONS Laws and Practices Laws The commercial property market in France is governed by legislation passed in 1953. Commercial leases are highly regulated and, to a considerable degree, standardized by French statute. This law was codified on September 18, 2000, under Articles L.145-1 of the French commercial code. Mandate Agreement: French law stipulates that parties sign a mandate document (Mandat de Recherche) when working on a real estate requirement, in order to ensure the occupier of an agent s expertise and extent of services. Property Agencies have a broker license from local authorities after verification of qualifications, clear criminal record, payment of insurance and financial guarantee. The occupier must provide certain required information in the Mandat de Recherche at the beginning of an assignment to find and negotiate space. The required information includes: type of company (occupier), financial capital of occupier, approximate area required, and location of requirement. Candidature Package The client should provide the landlord with a company candidature package including: Financial data presentation of parent company and French subsidiary Last two balance sheets of parent and local company Biography of top executives and CV summaries with photos Press review of articles regarding competitors Information on the economic sector of the company (i.e., statistics, turnover, levels of production, etc.) Extrait K Bis (Certificate of Incorporation) of company contracting lease Statuts (Articles of Incorporation) of parent and local company RIB (Relevé d Identité Bancaire), which means bank account details of the company taking the premises Other relevant information Standard Lease Although no standard lease contract exists, most are relatively similar because much of the law is codified. Lease contracts are typically 15-30 pages long. Right to Sublet Subletting is rare because lease contracts are generally short. Subletting is usually restricted to less than 50% of the premises and can normally only be rented to related companies. Assignment is normally only permitted if a company is sold, and then only under specific conditions. Option to Expand & Right of First Refusal An option to expand is not typically granted. A tenant may negotiate a first refusal for other space in the building. France Page 98 of 309

Late Delivery by Landlord Negotiable. A clause in the lease specifies the amount of indemnities. No laws address this. Holdover by Tenant The law does not address holdover. The parties usually negotiate a holdover penalty in the lease, typically in the form of a 50 100% rent surcharge. When a lease does not address holdover, a court can set the penalty amount. Signage and Naming of Building Owners usually permit signage in common areas. Owners of single occupancy buildings may permit exterior signage and the right to name a building if authorized by local planning authorities. OFFICE LEASING MARKET Transparency Comparables, i.e., names of tenants, square meters, rents, description of building, etc., are generally available for recent transactions in the Paris Region and in main markets elsewhere, although tenants, landlords, and agents sometimes sign non-disclosure clauses to maintain confidentiality on rents and incentives. Immostat, a property data management organization, created and financed by CBRE and other French real estate companies, maintains a shared database and provides comprehensive statistics on a regular basis. Immostat produces quarterly indicators for the Paris regional commercial property market. The press also publishes leasing transactions. Building Classification Buildings are usually classified as new, redeveloped, renovated, or second- hand. Buildings are usually considered new or re-developed for five years from delivery. No official building classification exists, such as Grade A, Grade B or Grade C in France, although such grades are sometimes used informally, especially with international landlords and tenants. Landlords identify buildings that have obtained an HQE (Haute Qualité Environnementale) Certificate, i.e., buildings certified as green. Developers also have a building classification which takes into account the construction quality. Information contained herein, including projections, has been obtained from sources believed to be 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 confirm independently its accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of the CBRE Global Chief Economist. France Page 99 of 309

Germany What s Typical? Term Negotiable, typically 5+5 years Break Options rare Renewal Typically 5 years Rent basis Net Free rent 3 6 months typical Escalation Indexed if tenant allowed to remain 10 years or more Security 3 months gross rent typical Fit-out Landlord contribution negotiable Tenant Broker Landlord usually pays tenant broker fee Right to sublet Normally allowed Transparency Limited Laws Leases usually rely on civil code Other laws Strong workplace and environmental laws. CBRE Offices Berlin +49 30 72 61 54 0 Cologne +49 221 17085 0 Düsseldorf +49 211 86066 0 Frankfurt/Main +49 69 17 00 77 0 Hamburg +49 40 8080 20 0 Munich +49 89 2420 60 0 Germany For More Information About CBRE Germany http://www.cbre.de/de_en About CBRE Germany Research http://www.cbre.de/de_en/research For Local Market Reports http://gkc3.cbre.com/search/search.aspx Contact Dr. Jan Linsin Director, Head of Research Germany +49 69 17 00 77 663 jan.linsin@cbre.com Page 100 of 309

LEASE LENGTH Term Most lease terms are for five years with an option to renew for another five years. Shorter leases are possible, and subject to penalties if an early break option is exercised. For a new development, a pre-lease of minimum ten years is required, without a break option or with a very high penalty. Termination or Break Options to terminate are rare. Landlords in Germany do not grant break options that can be exercised before three years. Renewal Leases of 5 10 years often include an additional five-year renewal option. Other Lease Options A tenant that needs space for a short time, such as two years, may have the following options: The tenant typically signs a 5-year lease with an option to break the lease after (minimum) three years. The lease typically specifies that if the tenant exercises this option, the tenant will pay a penalty equal to the nonamortized fit-out costs plus the landlord s additional costs; or a negotiable penalty amount. A tenant can lease the space directly from the landlord as outlined above, and then sublet the space when it is no longer needed. A tenant can find a short-term sublease and become a subtenant. A tenant can lease second-hand space short-term from a landlord directly with no fit-out work, although this is rare. SPACE MEASUREMENT Definitions Some landlords quote net area; others quote gross area. Gross area and net area measurements normally follow Gesellschaft für Immobilienwirtschaftliche Forschung (GIF) guidelines. GIF is a real estate association, created to standardize and improve real estate definitions. Landlords are not required by law to quote space according to GIF (or other) guidelines. The lease contract must exactly specify the areas that are subject to the lease. The type of area quoted is not standardized and varies from city to city. Efficiency A typical ratio of carpetable area to quoted area in a Class A building is 80 85% in Frankfurt and Düsseldorf; 85% in Munich. Efficiencies depend on whether the landlord quotes on a gross or net basis and on the building configuration. OCCUPANCY COSTS Rent Net Rental Quoted: Rent is typically quoted as EUR/sqm/month and payable monthly in advance. Free Rent: In 2011, tenants could obtain up to 3 6 months free rent on a typical 5-year lease with an option to renew for five more years. For 10-year leases, tenants can obtain up to 12 months free rent. Rent Escalation: The law allows landlords to escalate rent by indexation only for leases that allow a tenant to remain for ten years or more. Leases for five years that include a tenant s option to renew for five more years also qualify for indexation. Step-rent (i.e., fixed increases at fixed intervals) is occasionally used instead of indexation. Building Repairs: The landlord pays for repairs to the structure, and does not pass the charges to the tenant. Germany Page 101 of 309

Service Charges The tenant pays service charges to the landlord for: Services: Public rates for waste disposal, insurance, common electric, heat, cleaning of common areas, building security, management fees, etc. Water: Metered and paid in the service charge. At year-end, actual water usage and final costs are calculated, and the tenant pays the landlord for the extra usage, or the landlord reimburses the tenant for the excess that the tenant paid. Property Tax: The property owner pays the property tax and recovers it from the tenant through service charges. The amount depends on the property s assessed value and a regional factor called Grundsteuerhebesatz B, which varies from city to city. Building Insurance: The landlord recovers the cost of insurance for the whole building from tenants through service charges. Taxes Property Taxes: The tenant pays property taxes to the landlord as a service charge. VAT: The standard VAT rate in 2011 is 19%. Tenants pay VAT on rent, service charges, utilities, etc. Banks, insurance companies and unincorporated associations do not pay VAT on these charges, so landlords typically charge them a higher rent. Utilities Electricity: The tenant contracts with the electric company, which it pays directly. Water: The tenant pays a service charge to the landlord for water. Tenant Improvements Landlord Work: A landlord typically performs fit-out or contributes a negotiable amount toward fit-out, typically EUR 250 300 /sqm in a Class A building, depending on the rental rate and the lease length. Tenants should pay close attention to the quality of fit-out that a landlord is prepared to provide. Tenant Work: In the past, landlords rarely provided a cash allowance for fit-out and tenants rarely engaged or paid contractors directly. However, as international landlords and tenants have entered German markets, some allow tenants to hire contractors directly, Landlords usually allow tenants to use a tenant s architect and engineers, subject to the landlord s consent, and normally charge no fees to review design documents. Natural Light: German laws require natural light in working areas, although they do not specify a minimum distance to a window. Conference rooms and other shared areas do not need natural light. Minimum Area per Workstation: German law does not set out a minimum area per workstation. Workstations must have a sufficient floor space and, depending on the size of the floor area of the room, sufficient clear height to provide employees with a work environment that does not impact employee s safety, health or well-being negatively. However, eight square meters is considered a benchmark for a sufficient area per workstation. Fit-Out Costs: Fit-out costs for Class A or Prime buildings in major cities normally range from EUR 500 750 per square meter, including construction, furniture, wiring, design fees, etc. Fit-out costs may vary by 10 20% from one major city to another. Restoration Tenants normally must remove tenant-installed improvements at lease expiration, but this is negotiable in the lease. When required in the lease, landlords sometimes waive this requirement if the improvements are of value. Security Deposits and Guarantees Most tenants provide a bank guarantee, typically equivalent to three months gross rent, and sometimes equivalent to six months from a start-up company. Car Parking Spaces are allocated and stipulated in the main contract or separate contract, and are paid monthly per parking space. Germany Page 102 of 309

Other Occupancy Costs Cleaning of Tenant s Premises: Tenants, not landlords, hire and pay a cleaning company to clean the premises. Insurance for the Leased Premises. Repairs to the space within the leased premises. TRANSACTION COSTS Agency Fees New Lease In most cases, agency fees are fixed, but sometimes are negotiable, depending on the size of a deal and volume of the transaction and lease length. The tenant has historically paid agency fees, but in the tenant market of 2011, landlords paid them in most cases. When separate brokers represent the landlord and tenant, the fee is divided on a 50 50 basis. A typical agency fee on a 5-year lease in major German cities is equivalent to three months net rent, which is 5% of the rent for the lease term. Hamburg is an exception, with a typical agency fee of three months gross rent (rent plus service charge). Sublease or Assignment The sublessor usually pays 3 4 months net rent. VAT VAT (19% in 2011) is always added to agency fees. VAT is required if the service is provided in Germany, even if a client is located outside of Germany. Legal Fees Tenants should engage and pay a lawyer to review the lease contract. By German law, real estate companies like CBRE are not allowed to give any legal advice. Only licensed lawyers are allowed to give legal advice. OTHER LEASE PROVISIONS Standard Lease The Civil Code, called Bürgerliches Gesetzbuch, or BGB, sets standard terms for leases. Parties are free to enter into contracts with additional provisions that do not conflict with the Civil Code or other laws. However, it is common to enter into contracts with few or no additional provisions. Right to Sublet Subleasing is common and in most cases requires the landlord s approval. This, however, varies from contract to contract, as landlord s approval is not statutory. Option to Expand & Right of First Refusal Late Delivery by Landlord An option to expand is rare, but tenants may negotiate a right of first refusal. This is negotiable, as agreed in the contract. Holdover by Tenant This is negotiable, as agreed in the contract. Signage and Naming of Building Negotiable; depends on the building. Germany Page 103 of 309

OFFICE LEASING MARKET Market Practices Traditional German agents provide no analysis, negotiation assistance, etc., beyond introduction. CBRE, however, provides these services. Transparency Detailed information on transaction terms is confidential, although agents sometimes obtain data on transactions from competitors or the press. Building Classification Building Classes The classification provided below considers fit-out and technical specifications, but not services provided. Class A Buildings (Prime Buildings): These were typically constructed in the 2000s, with very high quality design and finishes, carpeted raised floors, modern cooling systems (e.g. concrete core cooling), a floor configuration that provides for a flexible floor plan layout, fully equipped kitchens in each floor, modern elevators, etc. They are located near transportation links. Class B Buildings: These typically have some, but not all, Class A features and must have elevators. Many were constructed in the 1990s. Some lack internal design flexibility. Class C Buildings: These are hardly marketable, with functional but outdated fittings. Office buildings without elevators are Class C. Environmental Cooling Systems: Many modern office buildings in Germany have a cooling system, such as concrete core cooling, instead of air conditioning. Some cooling systems use ground water brought up from deep in the earth to heat in winter and cool in the summer. Other cooling systems circulate river water for cooling. A cooling system allows the temperature to be controlled within limits, typically up or down by three degrees Celsius, whereas the air conditioning enables the temperature control beyond these limits. Energy Performance Certificates: Energy efficiency in office buildings is becoming increasingly important. Energy performance certificates indicate a building s energy efficiency. From July 2009, owners of commercial buildings must obtain an energy performance certificate (Energieausweis) before a new letting takes place or before a building is sold. These certificates are required by German Energy Savings Ordinance (Enenergieeinsparverordnung, EnEV, 2009) which is part of the German building law. Energy saving regulations (EnEV) include technical specifications for new and existing residential buildings and office buildings. In 2012, energy requirements will be tightened. The most commonly used green building standards in Germany are: LEED, awarded by the U.S. Green Building Council and a certification by DGNB (Deutsche Gesellschaft für Nachhaltiges Bauen), both of which offer various certification levels. Many newly constructed buildings by default fulfill the requirements of LEED silver certification, as the construction standards are very high. Several buildings of various uses have undergone renovation in order to become green. Many building owners increasingly seek LEED certification in addition to DGNB, because LEED certification is better known internationally. Information contained herein, including projections, has been obtained from sources believed to be 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 confirm independently its accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of the CBRE Global Chief Economist. Germany Page 104 of 309

Greece What s Typical? Term Break Statutory 12 years Statutory right after 12 months occupancy Renewal Statutory right to extend lease for 4 more years Rent basis Net Free rent Usually less than 3 months Escalation Indexed, typically CPI + 1% Security 1 3 months typical Fit-out Negotiable. Landlord usually builds small to mid sized installations Tenant Broker Tenant pays Right to sublet Rarely allowed Transparency Terms of recent deals sometimes available. CBRE Offices Affiliate Offices Athens (Atria Property Services SA / CBRE - Atria) +30 213 0169500 Athens (Axies SA / CBRE - Axies) +30 213 0169550 Thessaloniki (Atria Property Services SA / CBRE - Atria) +30 2310 279248 Thessaloniki (Axies SA / CBRE - Axies) +30 2310 241877 For More Information About CBRE Greece http://www.cbre.gr/cms/ About CBRE Greece Research http://www.cbre.gr/cms/index.php?option =com_content&view=article&id=32&ite mid=4&lang=en For Local Market Reports http://gkc3.cbre.com/search/search.aspx Contact Konstantinos Liodakis Occupier Services +30 213 0169513 konstantinos.liodakis@cbre.gr Greece Page 105 of 309

LEASE LENGTH Term Commercial real estate leases are by statute 12 years long, with a tenant option to extend the lease for four more years. This applies to all types of commercial leases (e.g., office, retail, logistics). There are a number of exceptions (e.g., leases for space in listed buildings, ports and airports) where the parties are free to agree on the lease terms. Termination or Break After a 12-year lease expires, the landlord has the right to terminate within a period of nine months and pay the tenant a penalty of 24 months rent, or otherwise to allow the tenant to exercise an option to extend for 4 more years. Tenants with standard commercial leases (i.e. not in an exempt property) may terminate their leases at any time after the first twelve months of the lease, with three months notice and a penalty of one month s rent. A law enacted on 17 June 2010: temporarily suspended tenant break waiver clauses agreed before the law came into effect, thus allowing tenants to terminate their leases with break rights in accordance with the new law. permits tenants in listed buildings (i.e. landmark or historical buildings that cannot be demolished without special permission) to terminate their leases under the same provisions as standard commercial leases. will only apply until the end of December 2012, after which the previous legal provisions will apply. SPACE MEASUREMENT Space Measurement Space is measured as gross external area. Definitions Gross external area (GEA), in square meters, is the most common basis of measurement in multi-tenanted buildings and in buildings with a single tenant. Landlords usually quote on the basis of GEA. The gross external area equals the net internal area (NIA) plus internal and external walls, columns and common areas. Net internal area is used by international occupiers when analyzing alternative office solutions. It includes toilets, kitchens and tenant IT rooms, but does not include external walls, common areas or columns. Efficiency A typical ratio of net internal area to gross external area is 75 90%, depending on the size of the floor plates and structural elements. OCCUPANCY COSTS Rent Rent Quoted: Rent is quoted on a net basis in EUR/sqm/month. Rent Payable: The tenant usually pays rent monthly in advance. Free Rent: Rent-free periods are usually less than 3 months. Rent Escalation: Rent adjusts annually, usually at a rate equal to CPI+1%. Costs Landlord Normally Pays: The landlord pays for structural building repairs and property ownership tax. The landlord normally pays to insure the building structure against risks not related to the use of the property. Operating Costs Tenant pays service charges for all common area operating costs including cleaning, security, shared utilities, maintenance, etc. Charges vary each month, according to actual expenses. Greece Page 106 of 309

Taxes Municipal Charges: The tenant normally pays a municipal charge. This varies in each municipality and is collected through the electricity bill. The municipal duty pays for garbage collection and other municipal services. Municipal Tax: This is usually much less than municipal charges, varies by municipality and is charged and collected through the electricity bill. Property Tax: Ownership tax calculated on the assessed value of the property, charged and collected through the electricity bill. By law payable by the landlord. On rare occasions tenants may agree to pay it. Value Added Tax: VAT payable by the tenant may replace the stamp duty on certain types of shopping center leases. Service charges, construction, and other costs typically include VAT. Utilities The tenant typically pays directly for maintenance and operating expenses of its exclusive premises, including cleaning and utilities. If the premises are part of a larger property, certain utility costs may be submetered and paid to the landlord. Fit-Out Fit-out cost and payment are negotiable and can be shared. The landlord usually performs fit-out work for small and medium-sized premises. Fit-out costs for office space in existing buildings in Athens range from EUR 200-400/sqm, including raised floors, suspended ceilings, partitions, mechanical and electrical work, doors, kitchen units, etc. Restoration At the end of the lease term, tenants are usually required to restore the property to its original condition, excluding normal wear and tear. Security Deposits and Guarantees The tenant usually pays a deposit equal to two months rent. Start-up companies may be required to provide a larger deposit, or guarantees, or both. In build-to-let agreements, guarantees may be considerably higher. Car Parking When available, tenants rent spaces on a per-space basis. Other Occupancy Costs Office leases are subject to a 3.6% stamp duty, which the tenant normally pays to the landlord on top of the rent. Sometimes, the landlord and tenant split the cost of the stamp duty. The landlord is liable for paying it to the tax authority. TRANSACTION COSTS Agency Fees International companies typically appoint their own agents. Fees are negotiated and agreed to beforehand, and depend on the property, location, time of leasing, services provided, etc. New Lease: Agents generally receive 8.33 15% of the first year s rent from the landlord or tenant or both. In exclusive appointments, the client normally pays the agent except when both parties retain the agent, in which case disclosure and arrangements are made to avoid a conflict of interest. In non-exclusive appointments, agents usually act as intermediary agents and take fees from both sides. Lease Renewal: Renewals are negotiable. Agency fees are usually based on a percentage of the new rent. Sublease: Subletting is unusual. Agency fees are negotiable. Legal Fees The tenant pays legal fees for review of the landlord s lease, typically on an hourly or lump sum basis. Greece Page 107 of 309

OTHER LEASE PROVISIONS Laws and Practices Office leases fall under the broader category of commercial leases. Lease law is set by statute. Negotiating Generally, landlords and tenants do not have preliminary agreements, but occasionally the landlord and the tenant either use a Heads of Terms agreement or sign a Memorandum of Understanding before working out terms of the final contract. A Heads of Terms agreement is a document with which two or more parties agree to general terms of a contract, i.e., monthly rent, annual rent increase, etc. It is considered a first step, at which time the landlord removes the property from the market, the prospective tenant stops searching for alternatives, and both cooperate by preparing details of the final contract. It is not legally binding but subject to contract. A Memorandum of Understanding is a document in which two or more parties agree to issues they will discuss, i.e., confidentiality, prices, end of negotiation period, etc. Standard Lease Standard leases are not normally used. Right to Sublet Most leases do not give the tenant the right to sublet to third parties. Subletting to subsidiaries or associated companies is normally allowed. Holdover by Tenant Most lease agreements penalize holdover with double or triple rent. Signage and Naming of Building Local laws prohibit or limit external signage in certain locations. Signage may be agreed in lease agreement. Other Lease Provisions Building security, if available, is part of additional CAM expenses. OFFICE LEASING MARKET Transparency Data on comparable deals that identify tenants, square meters, rents and incentives for recent transactions are not always available. Greece Page 108 of 309

Building Classification The characteristics of a prime office are: New construction, less than ten years old or newly refurbished. Raised floors. Suspended ceilings. At least two lifts, stairs and emergency fire stairs. Full Heating Ventilation Air-Conditioning (HVAC). Category 5+ cabling or better IT rooms within tenant demise with space for servers and other IT equipment. Floor plates of over 500 sqm. Regular configuration. Good quality reception and common areas. Kitchenette and men s and women s WCs on each floor. Clear internal height not less than 2.50 meters. Strong commercial location. At least one parking space for every 65 sqm of offices. Good road and motorway connections. Good access to public transport, train, metro. PURCHASE AND SALES Market Practices Domestic office occupiers and some international occupiers own buildings or condominiums. It is not rare for different investors to own parts of floors or buildings, and so multi-floor tenants sometimes must negotiate with more than one owner. Agency Fees Agents receive 1.5 3% on purchase/selling price. Other Transaction Costs The following costs are payable for transfer of ownership: Notary, Transcription and Legal Fees: Property is transferred through a contract signed in the presence of a notary (notary deed). Notary fees typically are 1.2% of the value of the contract and are paid by the buyer, who selects the notary. The new deed must be transcribed on the title at the land registry and a fee of 0.45% of the value of the property is payable for the transcription. Legal fees are also due as set by law depending on the size of the transaction. Typically, they are paid before the contract is signed, with each side paying its lawyer. Transfer Tax: The transfer tax is 8% (+0.24% stamp duty) on the first EUR 20,000 of property value and 10% (+0.30% stamp duty) on the remaining value as long as the property was not transferred once after January 1, 2006. If a property was transferred once since January 1, 2006, the subsequent transfer is subject to transfer duty of 1%. New Properties VAT: Properties with building permits issued after January 1, 2006, are not subject to Transfer Tax but are subject to VAT 23%. Real property taxation will most likely change in the second half of 2012. Greece Page 109 of 309

Information contained herein, including projections, has been obtained from sources believed to be 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 confirm independently its accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of the CBRE Global Chief Economist. Greece Page 110 of 309

Hungary What s Typical? Term Minimum 3 5 years Breaks Options negotiable Renewals Options negotiable Rent basis Net Free rent 3 6 months typical Escalation Typically CPI + 1% Security 3 months gross rent typical Tenant broker Tenant pays Fit-out Landlord pays for standard fit-out Right to sublet Common Transparency General info available, not details of completed transactions CBRE Offices Budapest +36 1 374 3040 For More Information About CBRE Hungary http://www.cbre.hu/hu_en About CBRE Hungary Research http://www.cbre.hu/hu_en/research For Local Market Reports http://gkc3.cbre.com/search/search.aspx Contact Rita Tuza Research Analyst +36 1 374 3040 rita.tuza@cbre.com Hungary Page 111 of 309

LEASE LENGTH Term Office space typically leases for 3 5 years, often with a renewal option. Large tenants usually leases for longer terms, however, a break option can be exercised in most cases after years 3, 5, and 7. Leases longer than 10 years are not standard. Landlords rarely rent out space for less than one year. Termination or Break Some leases give the tenant one or more break options. Historically, break options were not typical, but nowadays landlords tend to provide them. Most leases with break options require the tenant to pay a penalty if the tenant exercises a break option. Break penalties typically depend on the length of the original lease and the amount of time remaining on the lease when the tenant exercises its break option. A typical 5-year lease can include a break option at the third year, with an average penalty of six months. Leases with break options are normally at a slightly higher rental rate than leases without break options. Renewal An option to renew is negotiable before the lease is signed. 5+5 leases (leases with a fixed term of 5 years and 5-year renewal option) are typical. However, parties can also agree on other terms. SPACE MEASUREMENT Space Measurement Gross office areas are quoted. Definitions Gross office area = the tenant s space only (net area) + add-on (common areas, shared restrooms). Vertical circulation or technical shafts are not included in gross area in Hungary. Net area is the internal office space, which excludes exterior walls and technical shafts but includes interior walls in the tenant s area. Efficiency A typical add-on factor from net area to gross area is 8% and thus a typical ratio of net area to gross area is 92%. Add-on factor bigger than 10% can be considered unreasonable. OCCUPANCY COSTS Rent Rent Quoted: Rents are normally quoted on the gross area on a net rental basis in EUR/sqm/month plus VAT. Rent Payable: Rent and service charges are normally payable monthly or quarterly in advance. Rent-Free Periods: Three to six months is typical, depending on the occupier, lease length and fit-out. Rent Escalation: In every contract, rent is usually adjusted annually to the Euro MUICP (Monetary Union Index of Consumer Pricing) or HICP (Harmonised Index of Consumer Pricing) index. Hungary Page 112 of 309

Service Charges A typical service charge ranges from EUR 3.5 4.5 per square meter per month. The service charge covers: Maintenance of Common Areas and Services: This includes tenant s proportional share of the cost of operating, maintaining and cleaning common areas, security and repairs, air conditioning, plumbing, drainage, sewage, fire prevention, elevators, and building telecommunication systems. Property Tax: The property tax is included in the service charge. The rate varies according to the district s regulation, size and use of the property. The rate is between EUR 3 4/sqm/year. Property insurance for the building. Property Management: 3 5% of annual rent. Building Security: The service charge covers the cost of services such as 24-hour reception and security service. Facility Management: 1% of annual rent. Facility management is similar to property management. However, in Hungary the term facility management applies to more complex office sites or if a tenant occupies more than one building. Taxes Property Tax: Property tax is part of the service charge. Value Added Tax (VAT): For office space leases, VAT is 25% of the monthly rent plus service charges. Utilities Electricity: The tenant pays for electricity consumption based on a meter, except for electricity that operates the air conditioning system, which is included in the service charge. For a Grade A building, electricity and air conditioning are provided 24 hours a day at no extra charge, and are paid as a part of the service charge. Water: The tenant pays for water consumption based on a meter. Telephone and Data Lines and Cabling: The landlord provides a building telephone station and telecommunication cables to a connection point on the premises. The tenant contracts for telecommunications services and wiring of premises. The landlord provides channels for cabling systems within the premises and installs electrical outlets. Fit-Out Landlord s Work: The landlord normally delivers the premises with a good level of fit-out, according to the space plan agreed upon with the tenant; typically with a ratio of open to enclosed areas of 70% to 30%, suspended ceilings, ceiling lighting, standard restrooms, and some gypsum walls. Landlords also typically offer cash allowances of EUR 50 80 per sqm in addition to the standard fit-out. Tenant s Work: The tenant pays the remainder of fit-out costs including upgrades, furniture, IT wiring, and design and engineering. Fit-out Costs: Fit-out construction costs for Class A or Prime buildings normally range from EUR 150 200 per sqm which the developer or landlord pays as part of the standard fit-out. Restoration Tenant s obligations can be stipulated in the lease contract. The tenant is usually required to restore space to its original state, excluding the normal wear and tear. Security Deposits and Guarantees A cash deposit or bank guarantee equivalent to three months gross rent on average is payable. Some landlords may also require a parent company guarantee. Car Parking One parking space per 100 sqm of office space is typical in CBD. Elsewhere, one parking space per 50 75 sqm of office space is typical. This ratio depends on building location (CBD or Non-Central) and availability of parking spaces. Other Occupancy Costs Cleaning of the tenant s premises. Insurance Cost: Generally, the tenant pays for third-party insurance and building and property insurance as part of the service charge. Tenants typically have their own liability insurance. Hungary Page 113 of 309

TRANSACTION COSTS Agency Fees Each party pays its agent separately. The law prohibits agents from representing both parties. An agent works either on the landlord s or on the tenant s side. New Lease or Renewal: Landlords pay 8 20% of the average annual rent over the term for office, storage and parking space, excluding the service charge. The tenant pays its agent 10 15% of the average annual rent over the term plus a base fee, sometimes with an incentive payment if the agent negotiates a specified rent. In some cases the agent is paid based on the savings negotiated for the tenant. Sublease: Sublessor typically pays 12 16% of the average annual rent if the agent successfully subleases the space. Subtenant pays if represented (as official tenant-representation) but this is rarely the case. Legal Fees Legal fees to the tenant s lawyer are negotiable. Other Transaction Costs No stamp duty exists. OTHER LEASE PROVISIONS Laws and Practices Lease agreements are contracts that are regulated by the Civil Code and other legislation that covers commercial and residential leases. If either party breaches the lease contract, these laws clearly state the outcome. The tenant and the landlord may, but are not required to, sign either a non-binding Letter of Intent, or a Preliminary Agreement, which obligates parties to conclude a contract. Standard Lease There are no standard lease contracts. The landlord s solicitors prepare a lease contract. Right to Sublet Subleasing is common, subject to landlord approval. Option to Expand & Right of First Refusal Landlords occasionally provide a short-term expansion option (i.e., six months), and charge for it. A right of first refusal can be included in the lease agreement. This gives the tenant the option, cost-free, to lease a defined area in the future before the owner is entitled to rent out that space to a third party. Late Delivery by Landlord Consequences for delays caused by the landlord are negotiable. However, for delays caused by the tenant, the tenant pays rent for each day of delay. Signage and Naming of Building The landlord provides general signage at the building entrance on each floor. Larger and special signs usually require the permission of local authorities. OFFICE LEASING MARKET Transparency In Budapest, as in other Central European cities, like Prague and Warsaw, CBRE and other large international real estate companies belong to a property forum which collects office-leasing information, maintains a shared database, and publishes non-confidential information, such as stock, take-up, vacancy and demand. They do not share or publish sensitive and confidential information, such as rental levels and agency fees. Hungary Page 114 of 309

Building Classification Class A Buildings New or reconstructed office building 4-pipe HVAC or similar system Raised floors or suspended ceilings Slab-to-slab height of 3.6 meters or better (no less than 2.7 meters from top of finished floor and to suspended ceilings) Sufficient underground parking Advanced building management and security system Excellent utility capacity Modern high-speed elevators of sufficient capacity International standard property management; professional, experienced landlord Proper legal documentation Class B Buildings Older, partly or non-refurbished buildings With or without air conditioning units Less efficient floor plates 24-hour security Parking spaces Experienced landlord Local property management Some building amenities Building classification is currently being revised. The Budapest Research Forum is putting together a more detailed scorecard in order to assess and define the quality of the stock in a more precise way. Information contained herein, including projections, has been obtained from sources believed to be 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 confirm independently its accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of the CBRE Global Chief Economist. Hungary Page 115 of 309

Ireland What s Typical? Term Breaks Renewals Rent basis Free rent Escalation Tenant broker Security Fit-out Right to sublet Transparency Traditionally 5 10 years Options negotiable Statutory right, can be waived Net Negotiable. Can be 9 12 months on a 10-year lease Rent review every 5 years, upward or downward Tenant pays None for strong tenants Tenant usually pays Common High CBRE Offices Dublin +353 1 618 5500 For More Information About CBRE Ireland http://www.cbre.ie/ie_en About CBRE Ireland Research http://www.cbre.ie/ie_en/research For Local Market Reports http://gkc3.cbre.com/search/search.aspx Contact Paddy Conlon Associate Director +353 1 618 5520 paddy.conlon@cbre.com Ireland Page 116 of 309

LEASE LENGTH Term Terms have traditionally been 20 25 years, with one or two break clauses, often at the end of years 10 and 15, subject to 6 12 months notice and 6 12 months rent penalty. However, with the recent and continuing economic downturn, tenants are demanding more flexibility and shorter leases with break options at the 5th and 10th years. In suburban office markets, break clauses are common, with tenant break options at the 5th year, subject to 6 12 months notice. Penalties are more common if a tenant exercises a break option after year 3. Renewal The law gives commercial tenants that have been in continuous occupation for five years an automatic right to a new lease when the existing lease expires. Once renewal rights have been established the tenant can renew indefinitely, and can apply to the courts for a lease renewal in the absence of agreement with the landlord. Tenants can contract out of this right, but must receive independent legal advice for this to be valid. Most shortterm leases last four years, nine months, because most tenants get automatic renewal rights after five years. Leases shorter than four years, nine months are rare. SPACE MEASUREMENT Definitions Measurement terms used in Ireland are generally the same as in the U.K. because the code in Ireland follows the U.K. practice. Net internal floor area is the basis for measurement of offices in city centres and docklands, and for retail units. It includes only occupied offices, desks, office equipment, etc. It excludes stairwells, toilets, corridors, etc. The term net internal area in Ireland has the same meaning as the term carpetable area in the U.S. and elsewhere. Gross internal floor area is the basis for measuring suburban office space. Areas included are stairways, lift shafts, corridors, etc., and are included in addition to net internal area. Gross external floor area, which is rarely used today, includes area from the outside face of the building s wall, to the inside of the building including corridors, toilets, etc. It was the standard for measuring industrial premises in Ireland. Efficiency A typical ratio of net internal area to gross internal area in a Class A building in the suburbs is 80 85%. Ireland Page 117 of 309

OCCUPANCY COSTS Rent Rent and Incentives Quoted Rents: Rents are generally quoted as net rental in EUR/sqm/year. Rent Payable: Rent is paid quarterly in advance. Incentives: Landlords may offer free rent, free car-parking spaces and break clauses, but rarely pay a tenant improvement allowance. Free Rent: Rent-free periods are negotiable and a common incentive used by landlords to persuade tenants to sign a lease. The value of the incentive offered depends on general market conditions, the quality of the tenant taking the lease, and the length of the term. Rent-free periods vary significantly, but it is typical in Dublin in 2012 to be able to secure one to two months rent-free per year for each year of a new lease. Rent Escalation In most cases, rents are reviewed to market rent every five years. Most existing leases are on an upward-only basis, which means that rent remains the same if market rents fell since the last review. From March 1, 2010 upward only rent review clauses were banned, to reflect the reduced rental values for new leases, and not retrospectively for old leases. This has made way for new forms of rent escalation including fixed uplift and CPI linked rent. However market rent is still the most common benchmark for rent reviews. If parties disagree on open market rental value: Arbitration: Leases typically provide that the landlord and the tenant enter into formal arbitration if they disagree on the open market rental value during the term of the lease. They put forward their arguments to an appointed arbitrator or expert witness who decides the new rental level. Normally, professional property consultants represent landlords and tenants, and the arbitration process takes the form of either written submissions or an oral hearing. Once the arbitrator makes a decision, it is final and cannot be appealed except on a point of law. One cannot appeal on grounds that the new rent is too high, but can appeal if the arbitrator did not follow proper procedure. Normally, the landlord and tenant s representatives at arbitration are each paid 5% of the revised annual rent. The costs of arbitration are usually shared equally between the landlord and the tenant. Resolution through courts: If the tenant has a right to remain when the term of the lease ends, and if the parties disagree on a market rent for the extension period, a resolution is normally found through the courts rather than arbitration. Service Charges In a multi-tenanted building, every tenant pays a service charge which is a pro rata share, according to the tenant s proportion of the total space leased in the building. The service charge normally covers these outgoings: Cost of managing and operating the building including building security. Cleaning and general upkeep of the building, but not the tenant s premises. Sinking Fund: Tenants normally pay into a sinking fund that landlords can use later for major repairs, such as replacing a lift. The landlord has some discretion in deciding how the sinking fund is used, and can sometimes be used for capital improvements, such as refurbishing the lobby, improving landscaping, new windows, etc. Not all buildings will have sinking funds and in general tenants with FRI leases will be liable. Building Insurance: This is usually, but not always, covered in the Service Charge, and varies from building to building. Taxes Local Authority Rates: The property tax is known as local authority rates. Tenants in Ireland pay an annual rate charge on their occupied premises, based on a complex formula. The charge depends on local authority. EUR 70 per square meter is a typical rating cost for most modern buildings in Dublin. Charges are typically lower in provincial locations. Value Added Tax (VAT): The VAT on annual rent is 23%. Typically, if a company is registered for VAT, this can be re-claimed. If a company is not registered for VAT, the landlord has the option not to charge VAT on the rent, but this creates an additional liability for the landlord. Ireland Page 118 of 309

Utilities Electricity: The tenant pays electricity either to the Electricity Supply Board (ESB) based on the ESB s meter, or to the landlord based on the landlord s meter. In Ireland, the electricity charge is not based on the amount of space occupied and is not included in the rent. Water: The tenant pays for water through the local authority rates (equivalent to a property tax). Fit-Out Landlord Work: Restrooms, ceiling, ceiling lighting and raised access floors are typically considered landlord work and are considered part of the shell. Tenant Work: Tenants usually pay for fit-out and may use their own architects, engineers, and contractors, subject to landlord approval. The landlord s mechanical and electrical engineers typically review plans and specifications. The tenant pays for this review. Fit-Out Costs: For Class A or Prime buildings in major cities these normally range from EUR 550 1100 per sqm including construction, furniture, wiring, design fees, etc. Restoration The lease describes a tenant s obligations. The tenant usually must restore the premises to its original state at expiry, but this is negotiable. Generally, a tenant will have improved the premises, but any redecoration or damage must be made good, usually with a cash payment. Occasionally, parties agree in the lease that certain improvements can be left behind. Security Deposits and Guarantees Landlords typically only seek rental deposits where companies are not of significant standing or cannot offer the appropriate parent company guarantees. Landlords commonly seek parent company guarantees if a tenant s financial covenant is in doubt. Car Parking Some leases include car spaces in the base rent, while others charge rent for them separately. Car parking spaces typically rent for about EUR 4000 per year in prime city centers and EUR 1000 1500 per year in the suburbs. TRANSACTION COSTS Agency Fees Most landlords and tenants retain agents. New Lease: Both the landlord and tenant typically pay their agent a fee of 15% of a full year s rent plus VAT at 23%. Lease Renewal: The tenant typically pays 10% of a year s rent. For a rent review, the tenant typically pays 5% of a year s rent plus VAT @ 23%. Sublease: Both the sublandlord and subtenant typically pay their agent a fee of 15% of a full years rent plus 23% VAT. Other Transaction Costs Legal Fees: The tenant pays its solicitor a fee, typically 8 10% of the first year s rent plus 23% VAT. The landlord typically pays its solicitor a fee of 10% of the first year s rent plus 23% VAT to create a lease. Stamp Duty: An additional charge of 1% of the annual rent is charged on tenants. Ireland Page 119 of 309

OTHER LEASE PROVISIONS Laws and Practices The party that drafts the lease, typically the landlord, prepares a non-binding document called a Heads of Terms, comparable to a Letter of Intent or Term Sheet in the U.S., which outlines basic terms of the lease. For new buildings, the landlord and the tenant normally execute two documents: an Agreement for Lease and a Lease. The Agreement for Lease is in effect until the tenant occupies the space. Upon possession, the Lease supersedes the Agreement for Lease. Standard Lease Although no standard lease contract exists, most are relatively similar because much of the law is codified. Lease contracts are typically 30 60 pages in length. Right to Sublet Under the law, a landlord cannot unreasonably withhold consent to a sublet or an assignment. Option to Expand & Right of First Refusal Late Delivery by Landlord A right of first refusal is negotiable and becoming more common. Normally, a penalty is imposed to cover late delivery costs and damages. The penalty may be a multiple of rent or a fixed amount. For a new building, terms of such a penalty are in an Agreement for Lease. For an existing building, penalty terms may or may not be in the lease. Holdover by Tenant Holdover is rarely an issue. The law permits tenants to stay after having been a tenant for five years or longer, assuming they have accrued renewal rights. This is referred to as a statute tenancy. OFFICE LEASING MARKET Transparency Market data, such as lease lengths, areas, and rents for recent transactions is generally not available to the public. However, agents normally have access to details of specific transactions for rent review and research purposes. Building Classification In the definitions below, generation refers to the building s specification (i.e., design standards). A thirdgeneration building has the latest design standards. Prime: Best space available, usually brand new, as well as best second hand space in good locations with third-generation specification and quality design. Prime Third Generation: Modern, new office buildings, with full air conditioning and high specification, in prime location in capital or in prime suburb. Prime Second Generation: Office buildings built between 1980 1995 in prime capital or suburban location. Secondary: Good quality secondhand space; no longer prime due to age or location. Secondary Third Generation: Modern, new office buildings with full air conditioning and high specification in secondary locations in suburbs or in capital. Secondary Second Generation: Office buildings built between 1980 1995 in secondary locations in suburbs or in capital. Georgian: Older period buildings in the city center. Many are difficult to convert to modern offices. These buildings tend to be in vogue among professional companies such as solicitors and accountants. Ireland Page 120 of 309

Information contained herein, including projections, has been obtained from sources believed to be 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 confirm independently its accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of the CBRE Global Chief Economist. Ireland Page 121 of 309

Israel What s Typical? Term Negotiable. Most leases 5+5 years. 25 years is maximum. Breaks Negotiable. Sometimes with penalty. Renewals Typically 5 years on 5-year lease. Rent basis Net. Free rent Normally for fit-out period, usually 3 4 months. Escalation Indexed. Normally to Israeli CPI. Occasionally indexed to US CPI. Security 4 6 months including service charge as bank guarantee. Tenant broker Tenant pays 10% of annual rent. Fit-out Landlord pays, and tenant repays over 7 10 years Right to sublet Common. Transparency High. CBRE Offices Tel Aviv +972 3 561 6161 For More Information About CBRE Israel http://portal.cbre.eu/portal/page/portal/il_e n For Local Market Reports http://gkc3.cbre.com/search/search.aspx Contact Smadar Michalelov Head of Global Corporate Services +972 3 561 6161 smadar@man.co.il Israel Page 122 of 309

LEASE LENGTH Term Leases in new buildings tend to be longer than leases in previously occupied space. A typical lease term in a new building is five years with an option for five more years ( 5+5 ) or for ten years with a break option after 5 7 years. A typical lease term in previously occupied space is three years with an option for three more years. Termination or Break Break options are negotiable in the contract. The contract can provide for a penalty, sometimes a graduated penalty, depending on when the tenant exercises the option. The landlord usually reserves the right to break on certain conditions, including: a substantial breach of the lease by the tenant, change of ownership of the tenant, change in nature of the tenant s business or the tenant s liquidation. Renewal Renewal options are negotiable, and included in virtually all contracts. Generally, a lease will not permit the cumulative term of the lease, including renewal and option periods, to exceed 25 years, in order to prevent the lease from being deemed a taxable real estate transaction. SPACE MEASUREMENT Definitions Gross Area: Space measurement for leasing is in gross square meters. Measurements are from external wall to external wall. Common areas on each floor and common areas on ground floors are allocated to space that is leased. Net Area: The net area is area taken from internal wall to internal wall, and excludes the lobby and common areas on each floor such as toilets, elevators, shafts, etc. Net area has the same meaning as net usable and carpetable in the U.S. Efficiency A typical ratio of net area to gross area in a Class A building is 70 80%. OCCUPANCY COSTS Rent Rent Quoted: Since 2008, rent is generally quoted and paid as net rent in New Israeli Shekels (NIS) per square meter per month. Rent is rarely quoted or paid in USD/sqm/month as was more common in the past. Rent Payable: as agreed in the contract. The tenant writes separate checks for rent and service charges quarterly in advance. Occasionally, when rent is quoted in USD, it is payable quarterly in (NIS) at the representative rate of exchange with USD, using the higher of rent calculated either as of the date of signing the contract, or calculated at the time payments are made. The representative rate of exchange is an official rate published daily by Bank of Israel. Rent Payable in Advance: Three months is typical. At the very least, the tenant pays the first quarterly payment in advance. Free Rent: Free rent is negotiable, and normally covers only the period needed for tenant fit-out construction, which is normally 3 4 months. Sometimes a tenant can negotiate an additional free month, but rarely more. Rent Escalation: Rent is normally indexed with the Israeli CPI. Indexing is occasionally U.S. CPI for foreign companies paying in USD, or linked to USD. Also in option periods, the tenant pays either a fixed percentage of escalation or market rent, not less than the last payment. Rent Review: Rent review is performed as negotiated, generally at execution of options. The tenant pays VAT on rent. The 2011 VAT rate is 16%. Israel Page 123 of 309

Service Charges The service charge typically covers repair and maintenance of shared spaces and electrical and mechanical systems, air conditioning, cleaning, gardening, building insurance, 24-hour security, concierge, and all costs associated with all public areas and parking areas. A company, usually separate from the landlord, handles maintenance. Tenants have the right to check a landlord s actual costs at the end of the year. Service charge = Landlord s actual cost + markup + VAT. The landlord determines the amount of markup, which generally ranges from 10 15%. A typical service charge is NIS 13 18/sqm/month for a Class A office building anywhere in Israel. Taxes The tenant pays monthly municipal taxes based on an area of space recorded by the Land Registry, which is usually close to, but not necessarily identical to, actual net area leased. Municipal taxes vary depending on city, neighborhood and use. Large cities generally have higher tax rates than small cities. The highest tax rates are in Tel Aviv and Jerusalem. Banks and insurance companies pay a higher tax rate than hi-tech companies. Monthly taxes for office space in cities generally range from NIS 9 22/sqm, and up to four times these amounts for banks and insurance companies. Monthly taxes for hi-tech space in outlying industrial parks can be as low as NIS 4.5 11/sqm. Fit-Out Fit-out costs for Class A or Prime buildings in major cities normally range from NIS 2000 2500/sqm, and can include design fees, project management, etc. The developer finishes space according to the tenant s specifications based on a negotiable construction budget of NIS 1500/sqm, which includes the cost of air conditioning, wall-to-wall carpeting, acoustic ceiling, lighting, internal partitioning, and IT wiring (but not furniture, design, engineering or project management). The tenant pays back the construction cost over a period of 7 10 years. When a landlord or developer builds a space for a tenant, the landlord or developer is effectively making a loan to the tenant. Every NIS 100 provided by the developer is returned with an additional NIS 1.2 per sqm per month on base rent, over a period of 7 10 years. The NIS 1.20 per sqm per month is not negotiable, but the length of time for the loan to be repaid, which can be from 7 10 years, is negotiable. If the length of a lease is shorter than the payback period, and if a tenant does not exercise their option to remain, a penalty clause requires the tenant to pay back the unpaid portion of the investment at the time of lease expiration. Restoration Normally, tenants must return the premises at lease termination in good order, with reasonable wear and tear. Occasionally, the landlord retains the right to decide whether a tenant must restore the space, although rarely to core and shell condition, or return it without restoration. Security Deposits and Guarantees The tenant usually provides a bank guarantee, generally 6 months rent plus service charge. The landlord may also require, in addition to rent payable in advance, security checks and/or deposits. Car Parking Parking spaces typically lease for USD 350 950/space/month plus VAT if on-site. Parking spaces are commonly allocated at one space per 30 40 sqm of office space. Tenants sometimes negotiate rent-free spaces if the landlord owns and operates the garage. Some tenants arrange for lower-cost off-site parking. Other Occupancy Costs Interior repairs. Insurance for the Leased Premises: third-party insurance, property and contents insurance. Israel Page 124 of 309

TRANSACTION COSTS Agency Fees New Lease: This varies from 8.3 10% depending on representation. If only the tenant is represented, 10% applies. In Israel, many brokers represent both parties, and take 8.3% from each party. CBRE affiliates typically represent tenants only, and charge 10% to the tenant. Lease Renewal: 10% + VAT of savings unless rent has increased and then a different mechanism is stipulated. Sublease: One month s rent plus VAT paid by both sublessor and subtenant. Disposal: The term disposal, in Israel, refers to a buyout, in which the tenant pays the landlord to be released from obligations of the lease. For representing a tenant on a disposal, brokers typically receive a percentage of savings throughout the lease period, typically 10% plus VAT. Legal Fees Each party pays its own lawyer, normally by the hour. Other Transaction Costs No other significant transaction costs such as stamp duty or registration fees apply. OTHER LEASE PROVISIONS Standard Lease Each landlord uses its own lease document, and parties are free to determine the terms of the lease, without additional statutory rights. Right to Sublet Subletting is common. The landlord always reserves the right to approve a subtenant. Normally landlords may not withhold consent arbitrarily. Option to Expand & Right of First Refusal Late Delivery by Landlord Negotiable. A right of first refusal is rare but negotiable, and addressed in the lease if given. Consequences of late delivery are negotiable and normally addressed in the lease. Holdover by Tenant Leases provide for a big penalty if the tenant holds over, typically between 150 200% of lease rent per day. Additionally, the landlord can go to court and claim damages. Signage and Naming of Building Signage and naming of buildings are negotiable, and can be addressed in the lease. OFFICE LEASING MARKET Transparency Data on comparable transactions is generally available for recent transactions including tenants, square meters and rents; however, published rents may be inaccurate, because landlords and tenants sometimes report misleading information. Parties may seek to achieve confidentiality with a non-disclosure clause in the lease. The local press often prints terms of deals. Building Classification No common building classification system exists in Israel, although it is safe to say that Grade A buildings are much better than Grade B, and that Grade C buildings are rare. Israel Page 125 of 309

PURCHASE AND SALES Agency Fees Sale/Purchase: 0.75% 2% of the total purchase price, depending on the transaction volume. Other Transaction Costs Buyer pays purchase tax of 5%. Seller pays capital gains tax and betterment tax, if applicable. Rate varies according to parties taxation level. Information contained herein, including projections, has been obtained from sources believed to be 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 confirm independently its accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of the CBRE Global Chief Economist. Israel Page 126 of 309

Italy What s Typical? Term 6 years is statutory minimum and typical Breaks Breaks after 6 years is negotiable Renewals Automatic after 6 years unless either party gives notice. Landlord notice Only in certain limited circumstances Rent basis Net Free rent 6 12 months typical in 2011 Escalation Indexed annually, up to 75% 100% of the ISTAT inflation index Security 4 6 months rent including service charge as bank guarantee Tenant broker Tenant pays 10 15% of annual rent Fit-out Tenant usually pays Right to sublet Normally allowed with landlord consent Transparency High in Milan, limited elsewhere CBRE Offices Milan + 39 02 303 777 1 Modena +39 05 929 248 11 Rome +39 06 4523 8501 Turin +39 011 227 2901 For More Information About CBRE Italy http://www.cbre.it/ For Local Market Reports http://gkc3.cbre.com/search/search.aspx Contact Andrea Cervellera Director, Office Agency Department +39 02 303 777 45 andrea.cervellera@cbre.com Raffaella Pinto Head of Research +39 02 303 777 38 raffaella.pinto@cbre.com Italy Page 127 of 309

LEASE LENGTH Term According to Article 27 of Italian Law No. 392/1978, commercial leases cannot be signed for less than 6 years. The parties are free to agree on longer periods, but any clause which limits the duration of the lease to less than 6 years would be void and automatically replaced by a clause providing for 6 years. According to the law, all leases automatically renew for an equal period, of not less than 6 years. This means that all leases automatically renew for the same length as the original lease unless either party gives notice (12 months) to terminate. The maximum term length, including renewals, is 30 years, according to Section 1573 of the Italian Civil Code. Termination or Break Break by Tenant: Parties might negotiate in advance to include a break clause that allows the tenant to break the lease before the first six-year term ends. In the last few years, many companies have put a break option after the third or fourth year as well. The break clause typically provides that if no party gives notice, the lease automatically renews for another six years upon the first expiration. Beside the abovementioned contractually agreed break option, Law 392/1978 grants the tenant an extraordinary early termination right in Article 27 Subsection 8. Such provision entitles the tenant to break the lease with a prior written notice of 6 months, if serious and justified reasons (gravi motivi) exist. Break by Landlord: A landlord can break after the first six years, only under certain well-defined circumstances, such as occupation by the landlord or demolition. Renewal Upon expiration of the first 6 years term, the contract is automatically renewed at the same terms and conditions for other 6 years, unless either the tenant or the landlord notifies its intention not to renew the lease at least 12 months before the contract expires. While the tenant may freely decide not to renew the contract, the landlord can do so only in very limited cases. Such circumstances are listed in the article 29 Law 392/1978 and can be summarized as follows: intention to use the premises for himself or for his relatives, intention to demolish the building in order to rebuild it, intention to refurbish the building in order to make it compliant with certain laws. SPACE MEASUREMENT Space Measurement In Italy no standard measurement rules exist. According to the market practice, measurements for leasing are normally on a gross internal basis and the space is measured in terms of Gross Internal Area or Commercial Gross Surface, as defined in the Dpr 138/98. Definitions The Gross Internal Area is measured from the inside of external walls, and includes usable space, stairs, structures and lifts, and some or all common areas. Some prestigious CBD buildings measurements include common or ancillary spaces. Efficiency A typical ratio of carpetable area (i.e., area usable exclusively by the tenant) to gross internal area for a Grade A office building is 80 85%. Italy Page 128 of 309

OCCUPANCY COSTS Rent Rent Quoted: EUR/sqm/year, excluding service charges and VAT. Rent Payable: Rent is usually payable quarterly in advance. Free Rent: In late 2010 and in 2011, tenants could obtain 6 12 months free rent. Incentives, such as free rent, are generally greater for longer lease contracts. Rent Escalation: For a six-year contract, rent usually adjusts annually by up to 75% of the inflation index, ISTAT (Istituto nazionale di statistica) as prescribed in relevant legislation. For leases longer than six years, starting in 2009, rent can adjust by up to 100% of the inflation index. Service Charges For a single-tenant property, the tenant generally pays directly for each service charge. For a multi-tenant building, the tenant pays proportionally by occupied area, according to the lease contract. Service charges can include: Ordinary maintenance: management and cleaning of the common area (including landscaping and parking). Property management fee. Air conditioning and heating for the common area. Utilities for common areas: electricity and telephone. Water consumption including tenant s personal usage is normally part of the service charges. Satellite aerial / CCTV. Reception and building security. Service charges can range from EUR 25 50/sqm/year depending on the location, building quality and level of services offered. For city center buildings in Milan, service charges are typically around EUR 45 50/sqm/year. Taxes Value Added Tax (VAT): In 2011, the standard rate paid on rent, furniture, tenant construction, etc., was increased to 21%. The entity that incurs the cost of the item pays the VAT. Therefore, the tenant pays VAT on rent. If a landlord pays fit-out costs such as furniture or tenant construction, etc. the landlord pays VAT on these items. Service charges are also subject to VAT, payable by the tenant. Garbage Tax: The tenant pays its proportional share to the municipality based on the area it occupies. Registration Tax: Paid annually and equal to 1% of the rent. Half is paid by the landlord, and half by the tenant. Utilities Electricity: Tenants pay for their personal electricity usage based on a meter. The cost of electricity used in common areas is included in the common area service charges. Telephone: Tenants pay for their personal telephone usage. Water: The tenant pays for water usage based on a meter when not included in the service charges. Fit-Out Landlord Work: The landlord provides permanent (demising) walls, restrooms, suspended ceilings and raise floors. Tenant Work: The tenant traditionally provides ceiling lighting, interior partitions, cabling, telephone system, etc., typically using the tenant s own architects, engineers, and contractors. Fit-out Costs: For Class A or Prime buildings in major cities, fit-out costs normally range from EUR 600 1,200 per sqm including construction, furniture, wiring, design fees, etc. However, in 2007, landlords began to contribute, and starting in 2010, some landlords are building customized spaces for tenants. Restoration The law requires the tenant to restore the premises at the end of the term, unless otherwise agreed in the lease contract. Italy Page 129 of 309

Security Deposits and Guarantees Landlords commonly ask for a bank guarantee. Three to six months rent, in the form of a bank deposit in most cases, or a cash deposit, is the minimum and standard security deposit. The landlord can claim part or all of this deposit directly from the bank in the event of non-payment of rent. Generally, landlords keep the deposit in the bank and do not use it for other purposes. The deposit can be greater for risky companies. Car Parking There is no rule regarding car parking. The cost of the car parking is generally included in the rent. Other Occupancy Costs There are no other significant occupancy costs. TRANSACTION COSTS Agency Fees Agents that work on an exclusive basis are paid by their client. Agents that work on a non-exclusive basis sometimes negotiate a full fee from both parties. Large real estate companies, like CBRE, normally work on an exclusive basis. New Lease: The tenant typically pays its agent 10 15% of one year s standard base rent (calculated without deducting any free rent) plus 21% VAT. For this fee, the agent conducts a property search and negotiates the lease contract on behalf of the client. Landlords generally hire agents to market the property with a similar fee structure. Lease Renewal: The fee, plus 21% VAT, can be based on the transaction structure, a fixed fee, or a percentage of savings. Sublease: The agent s client pays 10 15% of the first year s rent plus 21% VAT. Legal Fees Legal costs are typically minimal. Other Transaction Costs Registration tax equals 1% of the rent paid. Landlord and tenant each pay half annually. OTHER LEASE PROVISIONS Laws and Practices Regardless of the use of a real estate property, the landlord has only two types of contracts to choose from if he wants to let the property to a third party: the commercial lease contract the business lease contract. Commercial lease is the most common in the office sector and is ruled by the Italian Civil Code. Most provisions which govern the relationship between the landlord and the tenant under a commercial lease are contained in Law no. 392 of 27 July 1978. Compared to U.S. and the U.K., in Italy leases are shorter. Most disputes are solved privately by negotiations between the landlord and the tenant because the legal process is normally very timeconsuming. Standard Lease It is not market practice to use a standard lease document. It is market practice to negotiate the lease terms in each transaction. Right to Sublet The tenant can neither sublet the entire property nor assign the contract to third parties without prior landlord s consent. Save any express agreement to the contrary, the tenant is entitled to sublet a part of the property only after having communicated it to the landlord through a registered letter in which the name of the subtenant, the duration of the lease and the leased premises are indicated. Italy Page 130 of 309

Option to Expand & Right of First Refusal Late Delivery by Landlord An expansion option is not typical. Contracts rarely address late delivery, except that agreements for new buildings often have penalty clauses. Most existing spaces are marketed after they become vacant. Holdover by Tenant Holdover is not normally covered in the lease contract, although the landlord can keep the deposit, and can claim damages if the lease provides for damages. Signage and Naming of Building Tight planning regulations limit signage, which is determined on a case-by-case basis. Every sign outside a building needs municipal authorization, which normally includes a nominal charge. The landlord must also agree to signage and naming. OFFICE LEASING MARKET Transparency Milan is the economic center of Italy, with mostly institutional ownerships and the greatest number of large transactions in Italy. Milan has Italy s most transparent office market, although less transparent than the London market. Comparables, including tenant names, square meters and reported rental levels, are generally available only for significant recent transactions. The Rome market, with mostly private ownership and a greater concentration of public buildings, is less transparent than the Milan market. Other cities have localized markets where it is more difficult to obtain good market data. Large real estate companies like CBRE work with local brokers in smaller markets to obtain the information required. Building Classification No formal classification system exists. However, buildings are classified informally (Grade A, Grade B, etc.) based on the quality of the building. According to the new law on the energy performance certification, since 2011, in Lombardy, the lease contract must be provided together with the energy certificate indicating the energy class which the building belongs to. It will probably affect the quality classification of the office buildings in the future. PURCHASE AND SALES Market Practices Three alternative structures for the purchase and sale of commercial real estate are: Asset Deal: Most common for office properties. Under Italian law, an asset deal may be structured as either as (1) an acquisition of real estate property; or (2) an acquisition of an ongoing business. The typical deal structure is the purchase of real estate property. According to the law (article 1351 of the Italian Civil Code), title to real estate property may be transferred by means of a simple written contract. Every contract is composed by: agreement and price, reps and warranties, Share Deal: Most common for retail (shopping centers) properties. Quota Deal: When a property is owned by a real estate fund. Agency Fees Brokers that work on an exclusive basis are paid by their client. Large real estate companies, like CBRE, normally work on an exclusive basis. The commission ranges between 0.25% and 3% of the asset value, depending on the size of the deal. Italy Page 131 of 309

Other Transaction Costs Stamp duty equals to EUR 168 Acquisition costs (legal, advisory, brokerage, notary expenses, etc) A transfer tax, introduced by the Bersani law. If the seller and/or buyer is an Italian real estate fund the tax is equal to 2%; otherwise the tax is 4%. Information contained herein, including projections, has been obtained from sources believed to be 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 confirm independently its accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of the CBRE Global Chief Economist. Italy Page 132 of 309

Kazakhstan What s Typical? Term Breaks Renewals Rent basis Free rent Escalation Security Tenant s broker Fit-out Right to sublet Transparency 1 7 years typical Negotiable Statutory first refusal right Net 1 2 months typical for ft-out Fixed increases or % increases or indexed 1 3 months typical Tenant or landlord pays Normally tenant except landlord or split costs in weak markets Statutory right Low CBRE Offices Almaty +7 727 2581760 Aktau +7 729 2526584 Astana +7 717 2990440 Atyrau +7 712 2355860 For More Information About CBRE Kazakhstan http://www.cbre.kz/eng/ For Local Market Reports http://gkc3.cbre.com/search/search.aspx Contact Sholpan Makatova Office Agency Manager +7 701 7685779 sholpan.makatova@cbre.kz Peter Goranov Senior Manager - Strategic Consulting and Valuations +7 701 5705643 peter.goranov@cbre.kz Kazakhstan Page 133 of 309

LEASE LENGTH Term Due to the impact of the world financial crisis which started in late 2007, average lease terms decreased from 5 7 years in 2006 2007 to 3 years in 2008 2012 for Class A buildings. Leases for Class B space, especially those signed by local non-corporate tenants, are generally shorter. One-year lease agreements with renewal options became more common in 2008 2012. Termination or Break In most leases for Class A and Class B buildings, a break option is negotiable. Most international corporate tenants try to include tenant-only break options with 1 3 months notice. Break options usually follow Kazakhstan legislation, including Clause 556 of the Civil Code. Clause 556 permits a landlord to terminate the Lease Agreement if the tenant: (1) uses the space for purposes that violate the terms of the lease agreement, or (2) damages the premises, or (3) misses two or more monthly rent payments. Clause 556 permits the tenant to break if: (1) the landlord fails to deliver the premises to the tenant or causes obstacles to its use as specified in the Lease Agreement, or (2) the landlord fails to perform capital repairs as agreed, or if the premises have defects that were not disclosed prior to signing the Lease Agreement, or (3) if the premises become unusable due to causes other than the tenant s actions (such as Force Majeure circumstances). Renewal The Kazakhstan Civil Code gives existing tenants that have fulfilled all the terms of the Lease Agreement a priority right (a right of first refusal) to renew the lease agreement for the new period, with mostly the same terms and conditions except commercial terms, such as rent payment, operating/maintenance expenses, etc. SPACE MEASUREMENT Space Measurement Tenants pay rent for the gross area of the leased premises, which includes common-use areas, toilets, elevator shafts, fire escape stairs, etc. Landlords rarely charge the rent based on net or usable Area. Professional landlords of new Class A developments charge for gross office are, based on the BOMA method for gross office area measurement. Landlords of lower-category Class B business centers use the local system of measurement, issued by the Bureau of Technical Inventory (BTI). Kazakhstan Page 134 of 309

OCCUPANCY COSTS Rent Rent Quoted: USD/sqm/month Base Rent: The U.S. dollar has been the traditional currency for rental rate measurement since 2001. In accordance with Kazakhstan legislation, the tenant must pay the rent in Kazakhstan tenge (KZT) if both parties are domestic registered legal entities. Foreign-owned registered legal entities are permitted to pay rent in USD or EUR. Rent Payable: Tenants typically pay rent and operating expenses quarterly in advance. Monthly payments are generally not typical. On rare occasions, tenants are permitted to pre-pay semi-annually or nine months in advance. Rent Free: The rent free period usually covers the required fit-out period. If the landlord delivers the premises in shell-and-core condition, free rent is typically two to four months. If the landlord delivers the premises in a fitted-out condition, which the tenant may want to re-configure, the free rent period is typically one to two months. Rent Escalation: Rent is typically reviewed once per calendar year, and can be adjusted based on any of the following methods: (1) fixed during the whole lease term, or (2) adjusted using the USD/KZT currency exchange rate on the date of signing the lease agreement, or (3) indexed based on the inflation rate determined by the National Bank of Republic of Kazakhstan, or (4) increased by a fixed percentage (usually in the range of 3 10%) from the second or third year of the lease. Operating Expenses Operating expenses for Class A premises average USD 60 84/sqm/year, net of VAT. Operating expenses for Class B premises average USD 36 60/sqm/year, net of VAT. Typically, operating expenses cover: Property management fees. Utilities (except electricity and telephone bills). Security: Usually guards in the main lobby, outside of the Building and in the parking area; card access system and reception issuing cards to visitors and checking IDs. Maintenance and cleaning of common areas. Some business centers include cleaning inside the premises as well. Garbage and other waste removal. Property taxes. Building Insurance: The landlord pays the building insurance and usually passes its cost proportionately to the tenants as a part of the operating expenses. Taxes VAT: 12% VAT is payable on the monthly rent and service charge. Utilities Tenants pay for electricity by the meter. Tenants pay for water only when the tenant has a separate kitchen in its premises. Tenants pay for telephone and internet connection. Tenants contract for telecommunication services on floors. Extra Air Conditioning: Only few landlords provide air conditioning during normal office hours (Monday to Friday, 9 AM to 7 PM). Most buildings provide tenants with 24/7 air conditioning. The tenant pays for any additional air conditioning to their server room, based on usage measured by a meter. Telephone Lines: If the premises are delivered in shell-and-core condition, the landlord generally provides a building telephone station and cabling to floors. If the premises are in fitted-out condition, the landlord provides tenants with telephone lines and Internet connection. The tenant pays for additional telecom lines and Internet connection if required later. Kazakhstan Page 135 of 309

Fit-Out Landlord Work: Handover condition for new international standard buildings is generally shell and core, typically with finished common areas, fully functional restrooms, heat distribution throughout, elevators, base building mechanical systems and an operational fire safety system. Restrooms are not typically inside the tenant s premises. Any restrooms inside their premises are considered tenant work. Starting from 2008 2010, most international and domestic tenants had limited budgets, as a result of which most tenants were looking for fitted-out office space, not shell-and-core. Tenant Work: Landlords sometimes recommend their own building/fit-out contractors to the tenants, however in most cases tenants use their contractors, engineers, designers, etc. Some foreign tenants organize tenders to choose the best contractor. A Tender Process (or Invitation to Tender process) is a method to select suppliers to provide products and services. The process involves creating a suite of Tender Documents to manage the supplier selection process. The Tender Documents help the organization to select the best possible supplier available, and include documents such as the Statement of Work, Request for Information and Request for Proposal. Usually a tender process takes 1 2 months. Most tenants hire a project manager for quality and cost control, or to oversee non-standard work, or for special technical systems such as the computer server room. Fit-out Cost: A standard fit-out costs USD 700 1,000/sqm. International companies may spend USD 400 700/sqm on top of the standard fit-out cost for additional custom improvements and furniture, wiring, design fees, etc. Restoration Restoration is not usually required. Only few landlords require tenants to re-paint walls, change the flooring, ceilings, etc. Security Deposits and Guarantees Parties normally agree to a security deposit of one to three months. The landlord returns the deposit to the tenant after the lease expiration if the premises are undamaged and all rent has been paid. Otherwise, the landlord uses it to cover the rent payment for the previous months. Car Parking According to local KZ market practices, landlords normally allocate 1 parking space per 100 sqm of leased area. Parking costs are typically as follows: For underground parking in Class A buildings: USD 300 500 per 1 slot per month excluding VAT. For above-ground parking in Class B buildings: USD 100 200 per 1 slot per month excluding VAT. Very few reconstructed/overhauled Soviet-era Class B buildings have underground parking. Other Occupancy Costs Repairs: The tenant pays for repairs and improvements inside office premises. The landlord is responsible for building repairs and repairs to the parking areas and other adjacent areas. Insurance: The tenant pays to insure his premises and property inside it. Additional Security on Floors: Some tenants provide their own additional security. TRANSACTION COSTS Agency Fees Tenants often use outside agents or advisors to represent them in transactions. Landlords are normally represented by their employees, who may be lawyers. It is rare for outside agents to represent landlords. New Lease: Before the recent economic crisis, both the landlord and tenant normally paid the tenant s agent. In 2011 2012, the landlord usually pays the tenant s agent. Tenants rarely pay. Fees amount to 8.33 15% of the annual rent (Net of 12% VAT and operating expenses), depending on the size and scope of services provided by the broker. Lease Renewal: Tenant pays its agent 5 7% of the annual rent (Net of 12% VAT). Kazakhstan Page 136 of 309

Legal Fees Each business center ( BC ) in Kazakhstan has its own lease agreement. Some foreign tenants hire law firms to assist them during lease agreement negotiations. Legal fees are generally USD or EUR 100 350 per hour, depending on the position of the advisor (partner or legal adviser etc.). Many domestic companies (both tenants and landlords) use in-house lawyers instead of hiring third-party advisors. Other Transaction Costs Lease Registration Costs: According to Kazakhstan legislation, the lease agreement must be registered within 6 months after the lease agreement is signed. Landlords usually register the leases, and tenants provide them with necessary documents and assistance. Tenants rarely do the registration. Registration generally costs USD 50 100 maximum. OTHER LEASE PROVISIONS Right to Sublet Subletting is a standard right of the tenant, subject to the landlord s reasonable approval. Parties usually include this right in the lease agreement; however, the right to sublet is stipulated in the local legislation as well. Tenants can sublease part of their premises to affiliated companies without the landlord s approval. During the recent financial crisis, many tenants subleased parts of their premises to third parties in order to decrease operational costs. Option to Expand & Right of First Refusal An option to expand is achievable for tenants. Larger tenants have a priority right to expand. If they refuse to take additional space, then the landlord offers it to other tenants. In 2010 some tenants started to expand and lease more office space. Very few expanded in 2008 and 2009 (the peak of the crisis period on the local market). A right of first refusal is achievable for anchor tenants. Late Delivery by Landlord The standard accepted penalty is 1 day rent-free for each day of delay or 0.1 1% of the monthly rent for each day of delay, dependent upon the parties agreement. Holdover by Tenant Tenants normally pay a penalty of 0.1 1% of the monthly rent for each day of delay, as specified in the lease agreement. This is very important for landlords, who want the tenant to vacate on time so that the space can be ready for a new tenant. Most lease agreements allow the landlord to show the leased space to potential new tenants one to two months before the lease expiration, with the prior agreement of the existing tenant. Signage and Naming of Building Tenants normally are permitted to install their company logo/signage in the main building lobby. Large and anchor tenants can also negotiate with the landlord to install external signage on the building façade or on the roof, or flagpoles on the property. Exterior signage and flagpoles cost extra. A major tenant may occasionally get naming rights. Kazakhstan Page 137 of 309

OFFICE LEASING MARKET Market Practices Business Centers (BC): A business center in Kazakhstan is a professionally managed office building that provides a variety of amenities and services. Business centers generally have underground parking, space for archives, technical rooms, and a canteen. Business centers may provide (1) Legal address: When a new company opens an office in Kazakhstan, it needs a legal address to register its representative office or branch. In such cases, tenants use the address of the BC, so they can start the registration. (2) Conference rooms that tenants can rent. (3) Virtual office services, including receiving all incoming calls and faxes, mail forwarding. (4) A postal address to receive correspondence. Business centers may have one or more tenants. Some large companies occupy entire business centers. Foreign tenants occupy more than half of the office space in business centers in Kazakhstan. Business centers tend to be around 15,000 20,000 square meters in size on average, because seismic requirements often limit building size to about 15,000 square meters. Transparency Information on rentals and occupied area in Almaty and elsewhere in the country is largely not disclosed publicly. Most landlords and business center owners do not share such information with third parties. Building Classification Despite the lack of a single generally accepted system, most Commonwealth of Independent States ( CIS ) countries, including Kazakhstan, use the classification below: Class A: International-grade investment property; complete new build; fully controllable 4-pipe HVAC system; raised floors and suspended ceilings; slab-to-slab height 3.6 meters or better (no less than 2.7 meters from the top of finished floor and to the suspended ceilings); efficient column spacing (no less than 7 meters) with appropriate window spacing; sufficient underground parking; advanced building management and security system; excellent utility capacity; UPS/back-up generator; modern high speed lifts with maximum waiting time of 30 seconds; international standard property management; professional experienced landlord; and, proper legal documentation. Class B: Generally close to Class A buildings; either newly built or fully reconstructed/overhauled; with less efficient floor plates and design (including bearing walls, etc.); often with 2-pipe HVAC or comfort cooling; may have a less experienced landlord and/or property manager. Class C: Un-refurbished Soviet-era administrative/institutional buildings. PURCHASE AND SALES Agency Fees The standard brokerage/agency fee charged throughout Kazakhstan is 3% (net of 12% VAT) of the transaction value. This fee is typically paid by the seller, although it can be sometimes charged to both the seller and the buyer. Other Transaction Costs Transaction costs (legal and registration fees etc.) are typically split between the seller and the buyer. The amount paid by each party is negotiated on a case-to-case basis and no standard rules apply locally. Information contained herein, including projections, has been obtained from sources believed to be 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 confirm independently its accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of the CBRE Global Chief Economist. Kazakhstan Page 138 of 309

Luxembourg What s Typical? Term 3/6/9 lease typical Break Option at years 3 and 6 typical Renewal Only if agreed in the contract Rent basis Net Free rent Negotiable Escalation Indexed annually Security 6 months bank guarantee typical Fit-out Tenant usually pays Tenant s broker Tenant pays Right to sublet Common Transparency High CBRE Offices Luxembourg City +352 26 26 12 For More Information About CBRE Luxembourg http://www.cbre.lu/lu_en About CBRE Luxembourg Research http://www.cbre.lu/lu_en/research For Local Market Reports http://gkc3.cbre.com/search/search.aspx Contact Véronique Koch Marketing & Administration +352 26 26 12 23 veronique.koch@cbre.com Luxembourg Page 139 of 309

LEASE LENGTH Term A standard lease contract in Luxembourg is for nine years with a break option generally fixed every three years. This is called a 3/6/9 year lease. Termination or Break The break option can be exercised by the landlord, the tenant or both. Parties are free to vary lease lengths, breaks or other terms. Lease contracts must be in writing. Renewal Tenants have no renewal rights except as agreed in the contract. SPACE MEASUREMENT Space Measurement Rentals are based on the gross lettable area, which measures from the internal face of external windows and the mid-point of the party wall of the adjoining building. Definitions The gross lettable area includes usable office area, elevators, stairwells, bathrooms and common areas. The ground floor entrance and entrance halls are included in the gross lettable area and are allocated in multi-let buildings to all floors. Efficiency A typical ratio of carpetable area to gross lettable area in a Class A building in Luxembourg City is about 80%. The term carpetable area refers to the area available for offices. OCCUPANCY COSTS Rent Rent Quoted: EUR/sqm/month Rent payable: Normally quarterly in advance. Free Rent: Depending on market conditions, landlords grant rent-free periods and other incentives, such as fit-out costs allowances, especially for longer contracts. Rent Escalation: Rent is indexed annually to the Indice Statec C2 (moyenne semestrielle des indices raccordés à la base de 1.1.1948). Rent can rise or fall, unless the contract stipulates otherwise. Costs Included in the Rent: The landlord pays for structural repairs to the building and common areas. Common Service Charges In addition to rent, the tenant pays its proportion of common (i.e., shared) service charges for the property. Average common service charges for a Class A multi-tenanted building in Luxembourg are EUR 4/sqm/month. Common Service Charges include: Maintenance of the building and grounds. Repairs: This includes all building repairs except for structural repairs, which the landlord pays. Property Tax: The landlord pays the property tax, called impôt foncier, and recovers it from the tenant as part of the service charges. The impôt foncier is a municipal tax computed on its valeur unitaire, which is the building value, defined by the valuation department of the tax administration of Luxembourg based on the building s use, location and type. Heating, cooling, water and common electricity. Luxembourg Page 140 of 309

Taxes Value Added Tax (VAT): Rent payment and service charges are subject to VAT of 15%. The tenant can recover the VAT if it is liable for VAT. Occupation Tax: No occupation taxes apply. Property Tax: As discussed above, the building owner pays the property tax, called impôt foncier, and recovers it from the tenant as part of the service charges. Utilities Tenants pay the electric company for electricity used within the premises based on a meter. Its cost is typically about EUR 7.1/sqm/year. Tenants pay for cleaning within their premises. Tenants pay for heating, cooling, water and common electricity through the global common service charges, calculated based on the area occupied. Fit-Out Landlord Work: The landlord normally delivers the space with heating, cooling, ventilation, electrical system, suspended ceilings, ceiling lighting, carpet, restrooms and fire detection. Tenant Work: Partitioning, wiring and upgrading are paid by the tenant and require the landlord s approval. Fit-out costs: For Class A or Prime buildings in major cities fit-out costs normally range from EUR 250 500 per square meter, including construction, wiring, design fees, project management, etc. Furniture is additional, and depends on the tenant s choice of furniture. Restoration At the end of the contract, the tenant must return the premises to its original state if stipulated in the lease. Security Deposits and Guarantees For all companies, the landlord normally requires a bank guarantee of 6 months rent (plus VAT) plus service charges (plus VAT), based on the landlord s evaluation of the tenant s credit. Car Parking Parking spaces in Luxembourg rent separately from the office area. CBD parking costs range from EUR 350 450 per space per month, VAT excluded. In other districts, rents are lower. Parking spaces are allocated proportionally according to the amount of space the tenant occupies in the building based on the ratio defined for the district by the state of Luxembourg. The law requires that landlords provide parking spaces according to this ratio. Other Occupancy Costs Repairs within the tenant s premises. No other significant costs generally apply. TRANSACTION COSTS Agency Fees Leases and Subleases: When the agent acts on behalf of the landlord, the landlord pays agency fees of 15% of the annual rent. When an agent acts on behalf of the tenant, the tenant pays its agent fees amounting to 15% of the annual rent. Lease renewal or termination: Typical fees for an agent acting on behalf of the tenant are around 8% of the annual rent. Legal Fees The tenant pays legal fees to its lawyer to review and negotiate the legal matters in the lease. Other Transaction Costs Registration fees for tenants that are not subject to VAT amount to 0.6% of all rents payable by tenant until the second break. For tenants subject to VAT, these fees total approximately EUR 20. Luxembourg Page 141 of 309

OTHER LEASE PROVISIONS Laws and Practices Luxembourg law governs office leases in the event of a dispute not covered in the lease. Real estate practices in Luxembourg are similar to practices in Brussels. Standard Lease No standard lease exists. Right to Sublet Subleasing is legal and common in Luxembourg. The lease contract may require landlord permission. Option to Expand & Right of First Refusal Late Delivery by Landlord A right of first refusal is negotiable. Penalties for late delivery by the landlord are negotiable and addressed in the lease contract. Holdover by Tenant Leases rarely address holdover by tenant, i.e., penalties when the tenant remains in the premises after lease expiration. Signage and Naming of Building The lease normally addresses signage. Normally the landlord allows tenant signage on a building. The placement and size have to be agreed. However, the tenant has to comply with building rules and eventual administrative directives issued by the communes or the state of Luxembourg. Large tenants with long leases can sometimes negotiate the name of a building. OFFICE LEASING MARKET Transparency Comparables that identify tenants, square meters and rents are available, although incentives are not always disclosed. Building Classification No classification guidelines exist in Luxembourg, except that buildings are classified as either new or secondhand. PURCHASE AND SALES Market Practices A few companies own areas in condominium buildings. Buildings in Luxembourg are often multi-tenanted premises, but rarely multi-owner premises. A condominium makes the sale of a property much more difficult. Institutional investors are normally not interested in such premises. Agency Fees The seller normally pays its agent and the buyer normally pays its agent. Each agent receives fees of 1 3% of the sales price. Luxembourg Page 142 of 309

Other Transaction Costs VAT: If construction is unfinished in the year of purchase, the buyer pays VAT of 15% of the purchase price building components purchased after the year of the sale. Property Transfer Tax: When existing buildings are sold as asset deals, the buyer pays only the property transfer tax, generally 6% to the Administration de l Enregistrement et des Domaines. The taxable basis cannot below than the market value. The transfer tax rises from 6% to 7.2% if the buyer declares that he intends to resell the property. If the buyer resells within two years, 5% is refunded if the resale occurs. Four percent will be refunded if the sale occurs between two and four years. For non-private property in Luxembourg City, a 9% transfer tax is charged instead of 6%. The Property Transfer Tax also must be paid for land sales. Transcription Tax: The buyer pays a transcription tax of 1% of the acquisition price of the property. A transcription tax pays the commissioner for the change of the owner s name in the official documents. The property transfer tax and the transcription tax apply only to asset deals (in which a property is transferred), not share deals (in which shares that include the property are transferred). Information contained herein, including projections, has been obtained from sources believed to be 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 confirm independently its accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of the CBRE Global Chief Economist. Luxembourg Page 143 of 309

Morocco What s Typical? Term Break Renewal Rent basis Free rent Escalation Security Fit-out Tenant s broker Right to sublet Transparency 3/6/9 lease typical Option at years 3 and 6 typical Automatic with most leases Net. Operating cost charges cannot exceed actual costs 1 3 months typical Every 3 years, normally by 10% legal maximum 1 3 months rent typical Tenant usually pays Tenant pays Rarely allowed to unrelated parties Low CBRE Offices Casablanca (Head Office) +212 522 77 89 80 For More Information About CBRE Morocco http://portal.cbre.eu/ma_en About CBRE Morocco Research http://portal.cbre.eu/ma_en/research For Local Market Reports http://gkc3.cbre.com/search/search.aspx Contact Regis Martin Consultant +212 522 77 89 80 regis.martin@cbre.com Morocco Page 144 of 309

LEASE LENGTH Term The typical Moroccan commercial lease is called bail trois/six/neuf (3/6/9 lease). The 3/6/9 lease gives both parties the right to break every three years. Other leases provide for a six- or nine-year commitment, called a firm contract period. Termination or Break Normally, no exits are allowed during the firm period. The lease terminates at the end of the agreed term unless it is renewed. The required notice period varies from three months to one year, but 6 months is the common practice. Renewal Most leases provide for automatic renewal at the end of the agreed leasing period. If the tenant does not give notice at the end of the nine years, the lease renews automatically for one to three years. The renewal rent can be increased by a legal maximum of 10% every three years. SPACE MEASUREMENT Space Measurement Quoted areas are usually on a net basis. Definitions The net area includes bathrooms within the premises, but excludes common building spaces such as stairs, elevators, shafts, and exterior walls. For a terrace (when available), the tenant pays half the rent charged for office space OCCUPANCY COSTS Rent Rent Quoted: Rent is quoted in Morocco Dirhams (MAD) per square meter per month. Rent Payable: The tenant pays rental including service charges and taxes in Morocco Dirhams (MAD). Tenants pay the rent quarterly or monthly in advance. Free Rent: Landlords grants rent-free periods when premises are delivered in core & shell condition. The rent free period typically covers the fit-out period (8 to 10 weeks). Rent Escalation: Rent is subject to an increase every three years. The law limits rent increases to 10%, so most landlords normally apply 10%, some less. VAT is only applied to rent (and services) for serviced premises (bureaux garnies), i.e., premises that provide fit-out works, furniture, telephones and secretarial services, reception, etc. Service Charges Building Service Charges (charges de gestion de l immeuble) are also called Common Area Maintenance (CAM) or Tenant Service Charges (T/S). These cover all costs related to common equipment and building maintenance, cleaning of common areas and façade, security systems and personnel. The use of a property management professional is rare and more common in buildings owned by institutional landlords (banks, insurances, etc.). Taxes The tenant pays 10.5% local (i.e., city) tax to the landlord in addition to the rent. The landlord pays it to the government. Morocco Page 145 of 309

Utilities Tenants pay the provider directly for their electricity and water consumption based on a meter. Fit-Out Landlord Work: Landlords normally deliver a core and shell. Bathrooms are normally included in the landlord s work. Suspended ceilings, ceiling lighting, air conditioning system, and ductwork are normally tenant work. Tenants normally pay all fit-out costs, although sometimes landlords do fit-out work and recover the costs through the rent. Landlords do not normally pay tenants any cash-allowance for fit-out. Fit-out costs for Class A (Prime) buildings in major cities normally range from MAD 3500 5000 per square meter, including construction, furniture, wiring, etc. Restoration Tenants normally must restore the premises when they vacate. However, they may be able to negotiate a right to exit without restoration if they leave the premises in good condition and fitted-out. Security Deposits and Guarantees A typical security deposit is for one to three months rent. Car Parking Car parking spaces are normally included in the rent. In Casablanca, tenants usually get one free car parking space for every 120 sqm of Class A space leased. In new developments, this ratio is typically lower (one free car parking space for every 80 sqm). Additional car parks can be charged from MAD 500 1000. TRANSACTION COSTS Agency Fees New Lease: The landlord and tenant pay 15% of the annual rent plus 20% VAT to their agent. If one agent represents both parties, the agent receives 30% of the annual rent plus 20% VAT. Sublease: If allowed by the landlord, the sublandlord and subtenant pay 15% of annual rent plus 20% VAT to their agent. If one agent represents both parties, the agent receives 30% of the annual rent plus 20% VAT. Lease Renewal: The tenant pays 7.5% of the annual rent plus 20% VAT. OTHER LEASE PROVISIONS Standard Lease Commercial leases in Morocco are standardized, but are not regulated. Standardized means that the lease terms are standard (i.e., commonly used) but free to be negotiated. Right to Sublet Subletting is rare. The landlord usually allows subletting only to related companies. Option to Expand & Right of First Refusal Late Delivery by Landlord Not typically granted. However, a tenant may negotiate a first refusal for other space in the building. Negotiable. A clause in the lease may specify the amount of indemnities. No laws address this. Holdover by Tenant The parties usually negotiate a holdover penalty in the lease, typically a 50 100% rent surcharge. When a lease does not address holdover, a court can set the penalty amount. Morocco Page 146 of 309

Signage and Naming of Building Owners usually permit signage in common areas. Owners of single occupancy buildings may permit exterior signage and the right to name a building if local authorities allow it. OFFICE LEASING MARKET Transparency Generally, information on rentals in Morocco is not easily accessible. Building Classification No formal classification system exists in Morocco, although properties are informally classified as follows: Grade A: Also called Prime. Properties in prime locations with good facilities such as good mechanical and electrical installations such as a generator set, lifts (elevators), air conditioning, access control, fire fighting equipment and services such as security, etc. Grades B and C: Properties without such facilities and in less attractive locations. PURCHASE AND SALES Agency Fees The buyer and seller each pay 5% of the sales price plus 20% VAT to their agent. If one agent represents both parties, the agent receives 10% of the sales price plus 20% VAT. Information contained herein, including projections, has been obtained from sources believed to be 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 confirm independently its accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of the CBRE Global Chief Economist. Morocco Page 147 of 309

Netherlands What s Typical? Term Breaks Renewals Rent basis Free rent Escalation Security Tenant broker Fit-out Right to sublet Transparency Any length. 5 years is standard Options negotiable Most 5 10 year leases have an option to extend for 5 years Net Common and negotiable Typically indexed annually Typically 3 months rent and 3 months service charges plus VAT Tenant pays Tenant usually pays Common Fairly high CBRE Offices Amsterdam +31 20 62 62 691 Hoofddorp +31 23 565 7700 Houten +31 30 635 22 11 Rotterdam +31 10 300 4800 The Hague +31 70 750 8900 For More Information About CBRE Netherlands http://www.cbre.nl/nl_en About CBRE Netherlands Research http://www.cbre.nl/nl_en/research For Local Market Reports http://gkc3.cbre.com/search/search.aspx Contact Rienk Baarsma Associate Director Tenant Representation +31 20 62 62 691 rienk.baarsma@cbre.com Netherlands Page 148 of 309

LEASE LENGTH Term The length of leases is negotiable and can be of any length, but five years is standard. Most leases of five to ten years include an option to extend for five years. Such options apply to properties of all sizes. Termination or Break The law does not give office tenants the right to terminate. The right to terminate is negotiable and can be included in the lease. Renewal The tenant has the right to renew after the option period(s) only if both parties agree. SPACE MEASUREMENT Space Measurement A clear and standard measurement code, called NEN 2580, provides instructions for measuring lettable area by a certified person or office. Areas Included: Internal walls, restrooms, and primary entrance halls. Areas Allocated: Shared areas in multi-tenant buildings are allocated proportionally to all floors. Areas Excluded: Areas for vertical distribution, such as staircases, elevators and shafts. Definitions For most cities in the Netherlands: Gross floor area = the area of the floor measured to the outside of the exterior walls. Net floor area = approximately 90% of gross floor area = Gross floor area minus constructions, walls, façades, shafts, rooms lower than 1.5m. Lettable floor area - approximately 84% of gross floor area = Net floor area minus vertical corridors. Efficient floor area = approximately 63% of gross floor area = Lettable floor area minus horizontal corridors. Functional floor area = approximately 57% of gross floor area = Efficient floor area minus loss because of lay-out. The terms loss factor and carpetable area are rarely used in the Netherlands. OCCUPANCY COSTS Rent Rent Quoted: Rents are quoted as net rentals in EUR/sqm/annum excluding VAT. Rent Payable: Rent is generally payable quarterly in advance. Free Rent: A free rent period is very common, but the amount varies greatly on the type of building, location and length of lease. Rent Escalation: Indexations take place annually in accordance with the annual CPI, Consumer Price Index, series for all households (2006=100), published by Statistics Netherlands, and start one year after the lease commencement date. Market rent reviews: These are usually included in the lease agreement and are also common upon renewal. Costs Included in Rent: Building insurance and building repairs. Netherlands Page 149 of 309

Service Charges The tenant pays service charges quarterly, in advance, with annual retrospective settlement. Service charges cover common electric, heat, cleaning, security, insurance, and management fees. A typical service charge in a Class A building in Amsterdam is EUR 35 55/sqm/year, excluding VAT. Taxes Property Tax: The property tax is charged to both the landlord and the tenant. The tenant pays approximately 45%. The landlord pays approximately 55%. The rate differs per municipality and is determined every year. A typical property tax charge for a tenant in a Class A building in Amsterdam is approximately EUR 4 6.50/sqm/year. The tenant pays its portion of the property tax directly to the municipality. Value Added Tax (VAT): VAT is 19% on services as well as on rent, although some of it may be recoverable. Utilities Electricity: Electricity costs are normally included in the service charges, based on the area occupied. If not included in the service charges, they are based on a meter. The typical cost for electricity is EUR 11/sqm/year. Water: Water costs are normally included in the service charges, based on the area occupied. If it is not included in the service charges, the cost is based on a meter. Typical cost for water is EUR 0.5/sqm/year. Heat: Heating costs are normally included in the service charges, based on the area occupied. If it is not included in the service charges, the cost is based on a meter. Typical cost for heating is EUR 6.5/sqm/year. Fit-Out Traditionally, the landlord provides painted perimeter walls and ceiling tile with lighting, whereas the tenant pays for partitions, carpeting, unit air conditioning and above-standard improvements, such as marble flooring, panelled walls, etc. Sometimes the landlord builds the space to suit the tenant, and then recovers the costs in the rent; however, this is negotiable and varies by landlord. Fit-out costs for Class A or Prime buildings in the Netherlands normally range from EUR 750 1,000/sqm including construction, furniture, wiring, design fees, etc., for a lettable floor area of 5,000 sqm. Restoration At lease expiration, tenants must usually remove, at tenant s expense, tenant-installed improvements. Improvements installed by the landlord may be returned with reasonable wear and tear. Security Deposits and Guarantees Normally, parties agree to a bank guarantee of three months rent and three months service charges plus VAT. In some cases, the tenant makes a deposit. The amount of the bank guarantee that the landlord requires sometimes depends on the financial strength of the tenant but a three-month obligation is typically minimum or standard. Generally, a Dutch bank account is required. Car Parking Local authorities determine the car-parking policy. Tenants pay for parking in almost all locations. Charges for parking are quoted in EUR per parking space per annum excluding VAT, and are normally payable quarterly in advance. In most Dutch inner cities, parking in a public zone is by means of licenses and tickets from a ticket machine. Other Occupancy Costs Insurance: The tenant must insure for fire, water damage, and actions arising from third-party claims against negligence. Repairs to the leased premises. TRANSACTION COSTS Agency Fees New Lease and Sublease: The represented party pays 12.5 18% of the first year s rent, sometimes subject to a minimum. Generally, 19% VAT applies. Lease Renewal: The tenant typically pays 10 12% of the first year s rent, sometimes subject to a minimum. Netherlands Page 150 of 309

Other Transaction Costs Fees for legal counsel, assistance of a tax specialist, and for a project manager are also possible. The party involved pays them directly. OTHER LEASE PROVISIONS Laws and Practices Netherlands law provides almost nothing concerning office leases, except for one article (7:230a BW) which states that after the lease ends, the lessee is entitled to extend under specific circumstances with a maximum of one year before landlord is allowed to evict the space. Standard Lease Most leases are based on a template with standard text decreed by Raad voor Onroerende Zaken (Council for Real Estate) on July 30, 2003. The parties fill in the open sections and amend the template as necessary. Any additions or changes to the standard text are normally put in italics or boldface to make them recognizable. Any major amendments or additions, such as a right of first refusal or changes to the General Conditions, are normally put at the end of the lease in a separate Special Conditions section. It is generally advisable that tenants negotiate some amendments to get a more even balance between landlord and tenant responsibilities and rights. The Council is not liable for any adverse consequences of the use of standard text. Right to Sublet In recent years, subleasing has become more common. It usually requires landlord approval. Option to Expand & Right of First Refusal Late Delivery by Landlord An option to expand is not typical. A right of first refusal for other space in the building is negotiable. An explicit late delivery clause can be negotiable, but is typical only with new buildings. Holdover by Tenant A holdover clause is not typical. Signage and Naming of Building A tenant s signage on a building and a tenant s naming of a building are negotiable and commonly granted, but subject to local municipality regulations. OFFICE LEASING MARKET Transparency Comparables, which identify tenants and lease terms are generally available for the biggest cities. The Dutch real estate market is fairly transparent but to a lesser extent than for example the U.K. market. The actual rent levels are masked by incentives, which are usually unknown. Two main property journals, Property NL and Vastgoedmarkt, report most commercial transactions. Large real estate advisors publish market data regularly. Building Classification No commonly accepted way to classify office buildings exists in the Netherlands. PURCHASE AND SALES Agency Fees The buyer and seller each typically pay their agents 2%. Netherlands Page 151 of 309

Information contained herein, including projections, has been obtained from sources believed to be 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 confirm independently its accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of the CBRE Global Chief Economist. Netherlands Page 152 of 309

Norway What s Typical? Term Breaks Renewals Rent basis Free rent Escalation Security Tenant Broker Fit-out Right to sublet Transparency 4 6 years typical; 8 10 years in new buildings Options negotiable Most 5 10 year leases have 5-year option Net Rare Typically indexed annually 3 6 months rent, returned with interest Landlord or tenant pays Standard fit-out usually included in rent Common Low. Tenant names, deal terms unavailable CBRE Offices Oslo +47 40 00 57 66 For More Information About CBRE Norway http://www.cbre.no/eng/ About CBRE Norway Research http://www.cbre.no/eng/index.php?id=16 For Local Market Reports http://gkc3.cbre.com/search/search.aspx Contact Jon Tufte-Johnsen Director Corporate Services +47 92 02 99 29 jtj@cbre.no Norway Page 153 of 309

LEASE LENGTH Term In 2012, lease terms in Norway are typically four to six years, even for relatively large spaces. Lease terms in new buildings are normally 8 10 years. Termination or Break Options to break are negotiable. Renewal Options to renew are negotiable. SPACE MEASUREMENT Space Measurement Norway has a standard measurement code, NS 3940 (Norwegian Standard). The quoted area, known as gross areas-bta, measures from the outside of external walls to the middle of internal walls, plus a percentage of common areas, such as staircases, elevators and shafts. Efficiency A typical ratio of carpetable area to gross area-bta in a Class A building in Oslo is 70 75%. OCCUPANCY COSTS Rent Rent Quoted: Rents are quoted net in Norwegian Kroner (NOK) per square meter per year. Free Rent: In 2011 2012, when the market favored landlords, rent-free periods were not given. Despite the turn of the market in 2008, most landlords still do not give free rent. Rent Indexed Annually: Rent is indexed annually, normally by 100% of CPI, sometimes 80% of CPI. Costs Included in Rent: building repairs, building equipment repairs, building insurance, fit-out costs (see below). Service Charges The tenant pays for heating, electricity, and other services (interior cleaning, snow and garbage removal, etc.) at current rates. Building security costs are included in the service charge, and depend on types of security: video surveillance, patrolling by guard, etc. Typical service charges range from EUR 31 40/sqm/year. For Class A space, EUR 40/sqm/year is typical. Taxes Value Added Tax (VAT): Since 2005, the tenant has paid a standard rate of 25%, recoverable on rent, service charge, utilities, etc. Utilities Water is normally free of charge. Electricity for heating is normally part of the building s heating system and therefore incorporated in the service charge. For electricity used in the premises for lighting and office equipment, the tenant pays the electric company directly based on a meter. Fit-Out Total fit-out costs for Class A or Prime buildings normally range from NOK 2500 4000 per square meter, which includes construction, wiring, design fees, etc. The landlord normally builds and pays for the fit-out, excluding furniture, and recovers these costs in rent. This fit-out normally includes interior partitions, lighting, electrical, air conditioning, carpeting, normal finishes, and IT wiring. If the tenant requires a very expensive or custom installation, the landlord still may pay for the fit out, depending on the lease term and the solidity of the lessee. The landlord very rarely pays for furniture. Norway Page 154 of 309

Restoration The tenant usually must remove its improvements prior to expiration of the lease. Security Deposits and Guarantees A security deposit normally is equal to 3 6 months rent. The landlord normally returns it with interest when the tenant vacates, provided that the tenant has met its obligations and returned the premises undamaged except for normal wear and tear. Other Occupancy Costs The tenant pays for repairs to the leased premises. TRANSACTION COSTS Agency Fees New Lease or Sublease: The landlord or sublessor normally pays agency fees equal to two months rent based on one year s normalized rent regardless of lease length, plus 25% VAT. Normalized rent means rent which does not consider rent-free periods, rents that increase over time, etc., and will include rent for parking and storage but exclusive of common costs. If an agent represents the tenant, the landlord usually pays the tenant s agency fees. However, in some instances, the tenant prefers to pay its agent directly. Either way, the tenant s agent normally receives 10 15% of the first year s normalized rent + VAT. Lease Renewal: Normally up 9.75% (i.e., up to 65% of a full lease acquisitions fee of 15%). If the landlord is the client, the landlord usually pays the fee. If the tenant is the client, the tenant usually pays the fee. Other Transaction Costs Except for legal fees (if legal issues are not handled by the agent), tenants do not pay other transaction costs. Agents can give advice on legal issues, and CBRE has in-house lawyers to assist. No laws prohibit agents from giving legal advice, but clients are advised to use their own lawyers in more complex legal cases. OTHER LEASE PROVISIONS Laws and Practices Lease documents in Norway are typically only 8 12 pages long, not including the appendix, specifications, and drawings, even for relatively large spaces. The Landlord and Tenant s Act governs if anything is missing in the contract. Offers are legally binding as agreed upon by both parties and as outlined in the offer document. Standard Lease The standard lease agreement for commercial properties by Huseiernes Landsforbund, Foreningen Nringseiendom and Forum for Nringmeglere/Norges Eiendomsmeglerforbund is frequently used. Right to Sublet Subletting is normally allowed, with written consent of landlord, not unreasonably withheld. Option to Expand & Right of First Refusal Late Delivery by Landlord Sometimes negotiable. The lease agreement seldom addresses this rare issue, and so parties normally negotiate a free rent period if the landlord delivers late. Holdover by Tenant Holdover is very rare, so a typical lease agreement does not address it. Parties normally agree on a penalty after a holdover. If they fail to agree, the eviction process takes about two weeks. Norway Page 155 of 309

Signage and Naming of Building This depends on tenant size and building location. The tenant normally pays the cost. Government permission is often necessary. OFFICE LEASING MARKET Transparency No official statistics on comparable transactions exist. Some information is available for Oslo, but real estate companies rarely reveal tenant names. Building Classification No official classification system exists. Information contained herein, including projections, has been obtained from sources believed to be 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 confirm independently its accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of the CBRE Global Chief Economist. Norway Page 156 of 309

Poland What s Typical? Term 3 7 years typical; maximum length 30 years. Leases become indefinite after fixed term ends Breaks Common for leases over 10 years Renewals Sometimes automatic, with 6 12 months notice to terminate Rent basis Net Free rent 3 9 months Escalation Typically indexed annually to Euro Zone or US CPI Security 3 6 months rent or 6 months bank guarantee Tenant Broker Landlord or tenant pays Fit-out Standard fit-out usually included in rent Right to sublet Usually allowed, with restrictions Transparency General market data; not deal terms CBRE Offices Warsaw +48 22 544 8000 Gdansk +48 58 764 6220 Poland For More Information About CBRE Poland http://www.cbre.pl/pl_en About CBRE Poland Research http://www.cbre.pl/pl_en/research For Local Market Reports http://gkc3.cbre.com/search/search.aspx Contact Colin Waddell Managing Director +48 22 544 8000 colin.waddell@cbre.com Joanna Mroczek Director of Research & Consultancy +48 22 544 8061 joanna.mroczek@cbre.com Page 157 of 309

LEASE LENGTH Term A lease agreement can have a fixed or indefinite term. The most common type of lease agreement for domestic and international tenants is a standard fixed-term one. In new office buildings it usually ranges from 3 7 years. The maximum office lease length for companies under Polish law is 30 years. Commercial lease agreements signed for over 30 years are considered by law as leases for an indefinite term. Leases entered into for an indefinite period of time may be terminated by either party upon an agreed termination notice, which should be included in the lease agreement. In the absence of the respective clause, such lease agreement can be terminated upon three months statutory notice. The termination is effective at the end of the calendar month. Termination or Break Options to terminate are more common in fixed-term leases over 10 years, although shorter leases sometimes include a break option, which allows the tenant to end the lease with a cancellation penalty. Renewal Fixed-term leases may incorporate an automatic renewal clause that requires 6 12 months notice for termination or an usual renewal option dependent on the intention of the parties. SPACE MEASUREMENT Space Measurement The landlord usually quotes the gross lettable area, which includes the usable internal area plus a share of the common area (elevator lobby, main reception), according to Polish standards. The share of the common area is called an add-on factor and usually amounts to 5 10%. Efficiency The ratio of net rentable area to gross rentable area for a Class A building in Warsaw is 90 95%. Poland Page 158 of 309

OCCUPANCY COSTS Rent Rent Quoted: Rent is quoted on a net basis, usually in EUR. Since Poland s EU Accession, rents are occasionally quoted in U.S. dollars (USD) or Swiss francs (CHF). Leases are expected to become fully EUR denominated upon its adoption in Poland, which may be no sooner than 2013. Before January 2009, payments, including rent, could only be denominated in the Polish currency (PLN). Since January 2009, parties have the option to pay in any currency, as agreed. Rent Payable: Rent is payable in advance monthly or very rarely, quarterly. VAT of 23% is payable on rents and sales in transactions between companies. Free Rent: Rent-free periods range from 3 9 months, depending on lease length, the landlord s contribution to fit-out and other capital costs. Rent Escalation: Rents are subject to annual indexation to the CPI ratio published by Euro-Zone, U.S. or GUS (Polish Central Statistical Office). The landlord pays for structural repairs, repairs to common parts, building insurance, local taxes and sewerage charges. Free Rent: Rent-free periods range from 3 9 months, depending on lease length, the landlord s contribution to fit-out and other capital costs. Rent Escalation: Rents are subject to annual indexation to Euro-Zone or U.S. CPI. The landlord pays for structural repairs, repairs to common parts, building insurance, local taxes and sewerage charges. Service Charges Service charges include water, electricity, security, heating, air conditioning, service, cleaning of common areas and all other maintenance and operation costs of the building and common areas. Service charges also include property taxes, building insurance, and building security. The tenant pays the landlord service charges, usually in PLN; sometimes in EUR, plus 23% VAT. Typical service charges in a Class A building in Warsaw are between EUR 4.50 6.00/sqm/month. Taxes Property taxes are paid by the property owner, and recovered from tenants through the service charges. Utilities The tenant pays for electricity consumption separately from service charges. The tenant usually arranges with and pays telecommunications suppliers directly. Water fee is usually included in service charge. Fit-Out The landlord gives the tenant a budget for fit-out and finishes space up to the amount of the budget. The tenant covers any expenses above the budget. Standard fit-out costs for Class A or Prime buildings in major cities normally range from EUR 180 250/sqm, including construction, furniture, wiring, design fees, etc. Restoration The landlord usually accepts the premises with normal wear and tear and without restoration. Tenants usually have no reinstatement obligations related to its premises. The landlord usually accepts the normal wear and tear of the leased area. Security Deposits and Guarantees Three to six months rent or a bank guarantee for six months rent is typical. Car Parking The tenant pays extra for parking. The fee for a parking space can be EUR 50 200 per month. Parking spaces are allocated according to a parking ratio, usually one space per 90 100 sqm in the central business district; one space per 70 sqm in the City Centre; and one space per 25 30 sqm (with one per 50 sqm acceptable depending on local public transportation in non-central areas). Poland Page 159 of 309

Other Occupancy Costs Insurance: The tenant pays for third-party insurance and insurance of rented premises. In addition to rent and service charges, tenants are obliged to pay 23% Value Added Tax (VAT). Lease agreements are not subject to registration by public authorities. TRANSACTION COSTS Legal Fees The landlord s lawyers usually prepare the lease agreement. Each party pays its own lawyers. Other Transaction Costs Registration fees and notary fees are optional and apply to property acquisition only. OTHER LEASE PROVISIONS Standard Lease Standard leases are triple net leases (operational costs, insurance and taxes paid by tenant). Right to Sublet Subletting is subject to the landlord s written consent and is commonly restricted. Late Delivery by Landlord If a landlord delivers the premises late, a tenant pays no rent for the duration of delay and can terminate the agreement if agreed in the contract. Another common practice is a penalty fee paid by the landlord to the tenant, which usually amounts to 200% of the agreed rent. Holdover by Tenant The tenant pays a penalty, negotiated and stipulated in the contract, typically 100 200% of rent for every day of delay. Signage and Naming of Building Signage cost depends on the landlord s policy, and can be free of charge, however usually is subject to an additional payment. As an incentive, some landlords allow a change in the name of the building for the biggest tenants. OFFICE LEASING MARKET Transparency The Warsaw Research Forum collects and shares office data on modern stock, completions, take-up and vacancy rates in Warsaw and other cities, but does not share rents and incentives. Poland Page 160 of 309

Building Classification Modern Office Standards established a benchmark standard for office space in the fast developing Polish office market. Below is an extract from the guide. The full text can be found at www.mosp.pl. Location Criteria Location is considered to be perhaps the most important element in determining an office building s class status. Only primary locations within the central business districts (CBD) or a significant business park can really be considered as Class A locations. This part of the classification system is therefore the primary designation in our classification guide. Class A location: Primary locations within the central business districts (CBD) and major or prestigious business park locations with excellent transportation connections and a variety of local amenities. Class B location: Secondary locations on the periphery of CBDs or on industrial or office estates located outside the CBD. These are good office locations with good transportation connections and services. Class C location: Any other location not defined as class A or B. Quality Criteria Class A office buildings should meet at least 17 out of 20 standard specifications: 12 obligatory + 5 additional. Class B+ office buildings should meet 15 out of 20 standard specifications: 12 obligatory + 3 additional. Class B office buildings should meet 13 out of 20 standard specifications: 12 obligatory + 1 additional. Class C buildings meet 12 or fewer out of 20 standard requirements. Obligatory specifications 1. Lobby/Reception: Well designed lobby/reception with 24-hour concierge, appropriately sized and designed for the building size and use. 2. Common Parts Provision: Cores are to be well-planned and appropriately sized to service the building occupants. 3. Car Park and Servicing: Good accessibility and car park provision for tenants and visitors; good access for deliveries and building management services are essential for modern office buildings. 4. Lift Service: Minimum lift service with a maximum waiting time of 30 seconds. 5. Ceilings and Lighting: Modern ceilings with efficient lighting to meet minimum standards. 6. Small Power: Good small power provision meeting minimum requirements. 7. BMS Systems: A modern BMS system to control access and security, fire, life safety and other building services. 8. Cabling: Provision of space for cabling and IT infrastructure. 9. Power Supplies: Provision of multiple power sources to ensure a constant power supply in the event of a local power grid failure. 10. Structure: Minimum structural loading floor capacities for each office floor level with an area allocated for high-loading levels on each floor. 11. Heating, Cooling & Ventilation: Provision of a modern system of heating, cooling, ventilation and humidity control to achieve good quality of internal climate. 12. Noise: A quiet office environment to meet minimum standards. Additional specifications 1. Landmark Status: A landmark building recognized in a local context by brand name, visibility or both. 2. Internal Layout and Grids: A highly flexible internal design, flexible layout grid and efficient plan with a good net to gross ratio. 3. Tenants Plant Space Provision: Capability to accommodate tenants additional services such as IT rooms, satellite dishes, UPS, etc., within the building. 4. Floors: Provision of a raised floor with a minimum clear service zone of 90 mm. 5. Amenities: Good local provision of amenities either on site or close by. 6. Day lighting: Good levels of natural day lighting, minimum 70% of net lettable area within 6m of an external window, minimum floor to ceiling height of 2.7m. 7. Environmental Standards: Achieving one of LEED Gold Standard or BREEAM Standard Very Good. 8. Carbon Reduction: Achieving a minimum of 10% carbon reduction when measured against current Polish building standards. Information contained herein, including projections, has been obtained from sources believed to be 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 confirm independently its accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of the CBRE Global Chief Economist. Poland Page 161 of 309

Portugal What s Typical? Term Breaks Renewals Rent basis Free rent Escalation Any length. 5 years is standard Break option negotiable Most 5 10 year leases have 5-year option to renew Gross Common and negotiable Typically indexed annually Security Bank guarantee equivalent to 3 6 months rent, including service charge + VAT Tenant broker Tenant pays Fit-out Tenant usually pays Right to sublet Common to affiliates Transparency Fairly high CBRE Offices Lisbon +351 21 311 44 00 Porto +351 22 616 72 40 For More Information About CBRE Portugal http://www.cbre.pt/pt_en/ About CBRE Portugal Research http://www.cbre.pt/pt_en/research For Local Market Reports http://gkc3.cbre.com/search/search.aspx Contact Cristina Arouca Associate Director, Research and Consultancy Department +351 21 311 44 00 cristina.arouca@cbre.com Maria Empis Senior Consultant, Research and Consultancy Department +351 21 311 44 00 maria.empis@cbre.com Portugal Page 162 of 309

LEASE LENGTH Term Leases can be of any length up to 30 years. Five years is typical. Termination or Break The law permits that parties may negotiate a leave break. A break option by the end of the third year is common with a five-year lease, but with fewer incentives. Renewal The law permits parties to negotiate renewals. SPACE MEASUREMENT Space Measurement Measurements of office properties are generally on a gross lettable area (GLA) basis for rental, although some property owners occasionally quote gross construction area (GCA). Definitions For office properties: GLA extends to the center line of party walls, includes external walls, and a proportion of common areas of each multi-tenanted floor. GLA excludes areas of vertical circulation, such as stairs, elevators, and ducts. Efficiency A typical ratio of carpetable area to gross lettable area in a Class A building in Lisbon is 82 85%. OCCUPANCY COSTS Rent Net Rental Quoted: The landlord quotes rents net of service charge in EUR/sqm/mo. Rent Payable: The tenant pays both rent and service charges monthly in advance. Free Rent: One month is typical for each year of the contract for office spaces larger than 500 sqm. Rent Escalation: Leases include annual indexation, with escalations at 75 100% of government-published CPI. Portugal Page 163 of 309

Service Charges Service charges in Lisbon s CBD generally range from EUR 2.5 4.0/sqm/month, depending on the area of the building and services provided. The service charge is the tenant s proportionate contribution of the cost of maintaining common areas and services. They cover: Utilities: Gas, water and electricity in common areas only, as tenant pays for these in tenant s premises. Technical Maintenance: Air conditioning, electrical. Cleaning of common areas only. Building Security. Fire and Intruder Alarms. Gardening. Reception: Including reception telephone lines. Building repairs. Administration fees. Insurance Cost: The landlord pays a multi-risk insurance for the building. Some leases provide that the tenant reimburse the landlord for this cost through the service charges. Taxes Municipal Property Tax: The landlord pays annual municipal property tax. Occasionally, the tenant agrees in a lease contract to reimburse this cost to the landlord through the service charge. This tax varies from 0.2 0.5% of the revalued fiscal value, and between 0.4 0.8% of the existing fiscal value. The fiscal value (valor patrimonial) of property is recorded in the land register. Within these ranges, the individual municipality determines the rate. The rate in Lisbon is 0.4% of the revalued fiscal value or 0.7% of the existing fiscal value. Value Added Tax (VAT): Rent is exempt of VAT. However, qualified landlords can obtain a VAT exemption waiver, if several conditions are met, including: (1) prohibition of subletting; (2) The real estate transaction must include the entire property. (3) The vendor or landlord and purchaser or tenant must have organized accountancy according to personal income tax and corporate income tax codes. Non-resident entities and entities without permanent establishment are therefore excluded. (4) The vendor or landlord and purchaser or tenant activity must be subject to VAT. Financial institutions, medical services, educational services, and some others are not subject to VAT. (5) The annual rent must be more than 4% of the acquisition price or construction price. This stipulates a minimum market yield of 4%. (6) VAT is payable on the service charge. The rate is 6% on electricity, water, security, and fire alarms, and 23% on all other costs. Utilities Electricity: The tenant pays for electricity, including electricity to operate central air conditioning in its space. The tenant normally contracts with and pays the supplier directly. Water: The tenant pays for water. The tenant normally contracts with and pays the supplier directly. Telephone Lines: The tenant pays for lines in their premises. Cleaning: The tenant pays for the internal cleaning. Fit-Out Landlord Work: The landlord normally provides finished open space with suspended ceilings, ceiling lighting, raised floors, air conditioning. For second-hand space in multi-tenanted buildings, the landlord sometimes includes the interior partitions and other improvements left from the former tenant. Tenant Work: The tenant usually performs the fit-out and can choose any qualified architects, engineers, and contractors. Landlords require prior approval of the fit-out, and require insurance. Fit-out costs for Class A or Prime buildings in major cities normally range from EUR 350 500/sqm including construction, furniture, wiring, design fees, etc. Restoration Negotiable. Normally the tenant must restore the space to its original state when the tenant first occupied it. Portugal Page 164 of 309

Security Deposits and Guarantees The security deposit is negotiable and is usually a bank guarantee equivalent to six months rent, including office space, car parking, and service charge. Car Parking The tenant typically pays for parking spaces, normally allocated according to the leased area. Other Occupancy Costs Repairs within tenant s premises. Insurance: The tenant pays for multi-risk insurance to cover damages the tenant causes to the premises or the building. TRANSACTION COSTS Agency Fees The landlord typically pays its agent a fee of 12 15% of the annual rent agreed plus VAT. Most tenants do not engage an agent to represent them. Tenant representation only happens with multinational corporate clients of international real estate companies, for which the tenant typically pays its agent a fee of 10% of the annual rent agreed plus VAT or limited to the savings achieved. Legal Fees The tenant pays a lawyer to review and negotiate the terms of the draft contract that the landlord provides. Other Transaction Costs Stamp Duty for Leases: Usually the landlord pays 0.10% of first month s rent. Notary and Registry Fees: Only sales transactions, not lease contracts, are subject to registry and registry fees. Notary and registry fees are a fixed amount, based on legal statute, not on purchase price. OTHER LEASE PROVISIONS Laws and Practices The Portuguese lease law came into force at the end of June 2006. It brought several significant changes to nonresidential office lease law, namely: Controlled updates of old lease rents prior to 1995. The process of updating will have to occur over a transitional period of generally five years, at the end of which the updated annual rental amount cannot exceed 4% of the value of premises. Flexibility: With a new lease, both parties can freely agree to contractual conditions, including term, options to terminate the contract, and contract renewals. Standard Lease Standard lease contracts are not used in Portugal. However, the lease law, Novo Regime de Arrendamento Urbano (NRAU), which is part of the civil code, covers most terms of a typical lease contract. Parties are free to negotiate most of these terms. Right to Sublet Subleasing is negotiable and permissible unless the tenant (i.e., the sublessor) is paying VAT on the rent. When subleasing is permitted, it normally requires written landlord approval. The VAT code stipulates that real estate lease transactions are exempt of VAT. However with the recent law N 21/2007, the Government introduced a set of changes in VAT legislation. Now, in order to qualify for a VAT exemption waiver, several conditions have to be met, one of them being the prohibition of subletting if VAT is applicable to rent. Option to Expand & Right of First Refusal Negotiable. Portugal Page 165 of 309

Late Delivery by Landlord Each case is negotiable. Parties address this in the lease contract. It is more frequent to have a clause regarding late delivery of the premises in contracts involving buildings where construction is not complete. Holdover by Tenant Each case is negotiable and specified in the lease contract. Signage and Naming of Building The landlord and the municipality must approve exterior tenant signage on the building. OFFICE LEASING MARKET Transparency The property market in Portugal is generally less transparent than more mature European property markets. Agents rarely share transaction details. However, a third party (Imométrica) collects information from major market agents regarding office transactions in the Lisbon market, and delivers to these agents information regarding total take-up, average and prime rental values, total stock, and vacancy rates, on a quarterly basis. Building Classification No commonly used building classification system exists. A high-quality building (comparable to Grade A) is energy efficient and includes suspended ceilings, ceiling lighting, raised floors, a ceiling height that is 3m from the raised floor to the false ceiling, central air conditioning and kitchenettes; as well as services such as cleaning of common areas, 24-hour security, lobby with reception, good parking space, etc. Information contained herein, including projections, has been obtained from sources believed to be 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 confirm independently its accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of the CBRE Global Chief Economist. Portugal Page 166 of 309

Romania What s Typical? Term Breaks Renewals Rent basis Free rent Escalation Security Tenant broker Fit-out Right to sublet Transparency Any length, 5 years typical Rarely, with 5 year lease after 3rd year Negotiable and common Net One month of free rent for each contractual year Indexed annually 3 months cash or bank guarantee Tenant pays 10 16% of annual rent Tenant pays, landlord sometimes contributes Common Terms of completed deals rarely available CBRE Offices Bucharest +40 21 313 10 20 For More Information About CBRE Romania www.cbre.ro About CBRE Romania Research http://www.cbre.ro/ro_en/research For Local Market Reports http://gkc3.cbre.com/search/search.aspx Contact Catalina Jigman Head of Office Agency and GCS +40 21 313 10 20 catalina.jigman@cbre.com Romania Page 167 of 309

LEASE LENGTH Term Leases can be of any length. A normal minimum lease length is five years, occasional with a break option at three years. A shorter lease term is typical for Class B office buildings located in less attractive areas. Termination or Break There is no rule or law on break options. The civil code s stipulations regarding break options are not mandatory. Renewal The majority of contracts include renewal options. SPACE MEASUREMENT Space Measurement Landlords quote gross leasable area in square meters. Parties generally use BOMA standards to establish the rentable area, but this is not yet an official standard. Definitions Gross leasable area includes restrooms (if they are within the premises) and an add-on building factor. On multitenant floors, space occupied by restrooms and other common areas is allocated proportionally to all tenants on the floor. Gross lettable area excludes staircases, elevator shafts, and non-load-bearing inner walls. Efficiency A typical ratio of carpetable area to gross rentable area in a Class A building in Bucharest is 88 90%. For a highrise building it could be as low as 81%. OCCUPANCY COSTS Rent Rent Quoted: Rent is quoted on a net basis in EUR/sqm/month. Rent Paid: The tenant usually pays rent quarterly or monthly in advance. Rents are denominated in EUR and paid in local currency, Romania New Lei (RON). VAT is paid in addition. The VAT rate is 24%. Rent Payable in Advance: Landlords usually require three months advance payment. Free Rent: Tenants may negotiate one month of free rent for each contractual year. Rent Escalation: Annual indexation with EUR CPI has become common for Class A and new Class B office buildings. Rent is reviewed (i.e., reviewed and adjusted) as negotiated, generally at the execution of an option. The rent review typically includes a review of rent per square meter, lease length, break option, and payment method. Romania Page 168 of 309

Service Charges Landlords usually use an open book system. With the open book system, the landlord estimates operating expenses for the first contractual year and the tenant pays monthly based upon these estimates. At year-end, the landlord charges or credits the tenant based on final costs. Capping service charges is not common. The service charge (typically EUR 3.5 4.5/sqm/month) pays for the tenant s proportional share of: Property Insurance: The landlord pays for building insurance and insurance for all public areas, parking and third-party insurance for the building and public areas. In over 90% of cases, the insurance costs are passed on to the tenant via service charges. Local property taxes: 1.5% of the total property value Electricity, Gas, Garbage, Water and Other Variable Costs: Range between EUR 1 1.5 per square meter. Facility Management: This includes maintenance of electromechanical systems, air conditioning, electricity, gas and water (of common areas), cleaning, plumbing, drainage, sewerage and gardening, security (24- hour security and daytime concierge), and typically is EUR 1 1.2 per square meter. Increasingly, tenants negotiate a maximum (a cap) for facility management fees. Management Fee: Typically EUR 0.2 per square meter. Taxes Local property taxes are included in the service charge. VAT for service charges is paid in addition (24%). Utilities Tenants may pay for electricity, gas and water used in the premises, as measured by a direct meter. Tenants pay for telephone and Internet. Fit-Out Landlord Work: The landlord typically delivers space with suspended ceilings, ceiling lighting, carpeting, HVAC distribution, sprinklers and common washrooms. Tenant Work: Some landlords contribute with 20 40% of the total fit-out costs. Tenants need to receive the landlord s approval for the fit-out and design documents, before any construction work begins. Cost of Tenant Work: Fit-out costs for Class A buildings in Bucharest normally range from EUR 150 250 per sqm including hard costs (construction, wiring) and soft costs (design fees, architecture, engineers). Restoration Usually landlords require the premises returned to its original state with no partitioning walls, in good order, with reasonable wear and tear. This is negotiable. Security Deposits and Guarantees A cash deposit or bank guarantee equivalent to three months rent is usually required from all tenants. If a parent company guarantee is required, then the sum is equivalent to six months rent. Any cash deposit is put into an escrow account and the potential interest is divided 50% 50% between tenant and landlord. Car Parking Parking spaces are leased at an additional cost to the tenant as follows: Central Locations: Parking spaces lease for EUR 100 200 per month for each underground parking space and EUR 80 100 per month for off-street space. Non-Central Locations: Underground spaces lease for EUR 80 100 per month; spaces above ground lease for EUR 40 50 per month. Parking spaces are distributed proportionally according to leased space. For new buildings, the Romanian construction law provides for one parking space, underground or above ground, for every 50 sqm of leased space. If the required parking spaces are not provided, the landlord pays a fine of EUR 10,000 for each missing parking space. Romania Page 169 of 309

Other Occupancy Costs Cleaning of the tenant s premises. Extra security guards. Third party insurance. External and Structural Repairs: The landlord pays for external and structural repairs, common area repairs, electro-mechanical system repairs inside the leased premises, and interior repairs of damage not caused by the tenant. Usually they are passed on to the tenant via service charges. TRANSACTION COSTS Agency Fees The vast majority of Landlords have no appointed agent, work on open market basis, and pay the fee to the tenant s agent. But when the tenant appoints the agent on an exclusive basis, the tenant, not landlord, pays the tenant agent. If two agencies are involved, each party pays a fee to its own representative. For New Leases When the landlord pays the tenant s agent, the fee ranges from 12 24% of the first full year s rent + 24% VAT. The fee of 24% is asked for new signed pre-leases for future office buildings. When the tenant pays the tenant s agent, of the fee ranges from 10 16% of the first full year s rent + 24% VAT. For Lease Renewals The landlord pays an 8.33% agency fee to of 8.33% to its agent. The tenant pays an agency fee of 8.33% to its agent. For Lease Renegotiation The tenant pays 20% of the total amount of savings achieved. Other Transaction Costs Each party pays its lawyer. A tenant s legal fees are typically about 0.5% of the total value of the contract, and are likely to be lower on large transactions. There are no stamp duty fees applicable. OTHER LEASE PROVISIONS Laws and Practices The principles and regulations included within the Civil Code are guide-use only, not mandatory. Companies normally lease, and do not own, the space they occupy. Standard Lease No standard lease exists. Right to Sublet The tenant can sublet the leased premises to its company s affiliates and to other companies, only with the landlord s consent. Because the Civil Code stipulates that sublease is permitted without the landlord s consent, with the exception of an agreed interdiction, lease contracts routinely include a sublease that requires landlord consent. Option to Expand & Right of First Refusal Late Delivery by Landlord An option to expand and a right of first refusal are negotiable. The contract usually provides for a day of free rent for each day of delayed delivery. Romania Page 170 of 309

Holdover by Tenant If a tenant remains in the space beyond the agreed date, it pays penalties by agreement in the lease. Signage and Naming of Building The signage rights are usually stipulated in the leasing contract. The dedicated signage area can be on top of the building or on a board near the entry lobby and usually the surface allocated to each tenant is calculated based on the leased area. OFFICE LEASING MARKET Transparency Financial terms of completed deals are not always available, although asking rents and lease length are generally available for recent transactions. The local press rarely prints deal terms. The National Office for Prevention and Fight against Money Laundering requires real estate companies to report cash transactions over EUR 10,000 and any suspicious operations. Building Classification Class A Buildings: Central or business location. Easy public transportation access, especially subway access. At least 1000 sqm gross rentable area for each floor. At least one parking unit for each 50 gross rentable sqm. New or reconstructed office building. 4-pipe HVAC or similar system. Raised floors or suspended ceilings. Slab-to-slab height of 3.6 meters or better (no less than 2.7 meters from the top of the finished floor and to the suspended ceilings). Advanced building management and security system. Excellent utility capacity. Modern high-speed elevators of sufficient capacity. International standard property management, a professional, experienced landlord. Proper legal documentation. Class B Buildings: Sub-market location. Poor public transportation access. 4-pipe HVAC or similar system. Raised floors or suspended ceilings. Slab-to-slab height of 3.6 meters or better (no less than 2.7 meters from the top of the finished floor and to the suspended ceilings). Building management and security system. Excellent utility capacity. Modern high-speed elevators of sufficient capacity. Property management, a professional, experienced landlord. Proper legal documentation. Class C Buildings: Older, partly or non-refurbished buildings. With or without air conditioning units. Less efficient floor plates. 24-hour security. Parking spaces. Local property management. Some building amenities. Information contained herein, including projections, has been obtained from sources believed to be 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 confirm independently its accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of the CBRE Global Chief Economist. Romania Page 171 of 309

Russian Federation What s Typical? Term Breaks Renewals Rent basis Free rent Escalation Security Tenant broker Fit-out Right to sublet Transparency Restoration Negotiable Often after 3rd year for both parties Typically with 3 9 months notice at market conditions; preferential renewal rights to existing tenants. Net; gross in St. Petersburg; often quoted in USD 0 6 months Rent indexed from 2nd or 3rd year to US CPI or fixed percent increase 0 3 months rent typical Paid by either the landlord or the tenant, or both Landlord allowance sometimes Common Terms of completed deals available for Moscow Not usually required CBRE Offices Moscow +7 495 258 3990 St. Petersburg +7 812 346 5900 For More Information About CBRE Russian Federation http://www.cbre.ru/ru_en About CBRE Russian Federation Research http://www.cbre.ru/ru_en/research For Local Market Reports http://gkc3.cbre.com/search/search.aspx Contact Claudia Chistova Head of Office Research +7 495 258 39 90 claudia.chistova@cbre.com Valentin Gavrilov Director of Research +7 495 258 39 90 valentin.gavrilov@cbre.com Natalia Kireeva Consultant +7 812 346 59 00 natalia.kireeva@maris-properties.ru Russian Federation Page 172 of 309

LEASE LENGTH Term Following the global financial crisis, average lease terms decreased from 5 7 years in 2007 to 3 5 years for Class A buildings starting in 2008. Leases for Class B space are generally shorter. Lease agreements for 11 months became more common in 2009 to avoid state registration. Termination or Break In most leases for Class A buildings, a break option is possible after the third year for both parties. Renewal Leases typically provide for renewal options at market terms and conditions with 3 9 months preliminary notice. The rental rate is often the main object of negotiations. SPACE MEASUREMENT Space Measurement Professional landlords of new Class A developments normally use the BOMA method for usable office area measurement. However, less professional landlords (usually of Class B space) use the local system of measurement, Bureau of Technical Inventory (BTI). Efficiency A typical ratio of usable office area to rentable area in a Class A building is 88 90%. OCCUPANCY COSTS Rent Base Rent: Rents for office space are usually quoted in U.S. Dollars (USD), sometimes in Euros (EUR) or Rubles (RUB). Rent is generally quoted and paid on a triple net basis, (also called net), which excludes taxes, operating expenses, and insurance. Some landlords quote, and tenants pay, a gross rent, which includes taxes, operating expenses and insurance. Rent is normally quoted and paid on a gross basis in rubles in St Petersburg. Rent Payable: Tenants typically pay rent and operating expenses quarterly in advance. Monthly in advance in St. Petersburg. Free Rent: Rental holidays, i.e., free rent periods, usually cover the fit-out period, and can vary from 0 6 months. Rent Escalation: Rent indexation applies from the second or third year of the lease based on U.S. CPI or a fixed percentage (usually 5 10%). Russian Federation Page 173 of 309

Operating Expenses The definition of operating expenses and quality of operating expenses vary extensively from building to building. Operating expenses for Class A premises in Moscow average USD 110 140/sqm/year, net of VAT. Operating expenses for Class A and B premises in St. Petersburg are, on average, 25 30% of the rental rate. Typically, operating expenses cover: Property management fees. Utilities for common areas. Security: Usually guards in the main lobby, a card access system, and reception issuing cards and checking passports. Maintenance and cleaning of common areas. Trash removal. Property taxes. Building Insurance: The landlord pays for building insurance and usually passes its cost on to tenants as a part of the operating expenses. Taxes Property Tax The landlord pays the property tax. Most leases allow landlords to pass a proportional share of tax increases to tenants. The annual property tax is equal to 2% of the book value of the building. For triple net leases (NNN, common for class A properties), the tenant pays the property tax (based on the proportion of rentable area leased in the building) via the service charge in addition to rent. For class B premises with gross leases the property tax is not recovered from tenants. VAT 18% VAT is payable on the monthly rental and service charge. Utilities Electricity: Tenants pay for electricity, water supply and heating, often separately according to actual consumption. Utilities generally cost USD 20 25/rentable sqm/year. Extra Air Conditioning: Some Landlords only provide air conditioning within the normal service charge during normal office hours Monday to Friday. The tenant pays the cost of electricity supply for after-hours air conditioning in leased areas according to the meter. Other landlords provide air conditioning over normal office hours and do not charge tenants additionally. Telephone Lines: Landlords generally provide a building telephone station and cabling to floors. Tenants are responsible for contracting for telecommunications services on floors. Fit-Out Landlord Work Handover condition for new international standard buildings generally includes finished common areas, fully functional restrooms, heat distribution throughout, elevators, base building mechanical systems and an operational fire safety system, and restrooms outside the tenant s premises. Second-generation premises are generally offered as-is. Tenant Work The landlord usually performs construction, although some landlords allow the use of tenant s architects, engineers, and contractors. Sometimes fit-out allowances depend on whether the tenant or the landlord hires the contractor. If the landlord offers a fit-out package, supervision and review of design documents is usually included. Some tenants hire a project manager for quality and cost control, or to oversee nonstandard work, or for special technical systems such as the computer server room. Cost of a standard fit-out is about USD 700 900/sqm. International companies usually spend USD 400 700/sqm beyond the standard fit-out cost. These costs include construction, furniture, wiring, design fees, etc. Russian Federation Page 174 of 309

Restoration Not usually required. Security Deposits and Guarantees Depending upon the property and the tenant s covenant, a security deposit can range from no deposit to the equivalent of three months base rent. The landlord typically holds the security deposit for the term and returns it to the tenant without interest. Car Parking Tenants are typically allocated one parking space per 100 sqm leased, and pay for parking spaces separately from the office rent. Other Occupancy Costs Repairs: The tenant pays costs for repairs inside office premises. Third Party Insurance: The tenant generally pays for third-party insurance. Security personnel on office floors if needed. TRANSACTION COSTS Agency Fees New Lease Both landlords and tenants can use agents or advisors to represent them in transactions and each party pays a fee to its agent. VAT is additional. The landlord typically pays its agent 8 12% of the annual contract net rent, depending on the size and scope of services provided. The tenant typically pays the agent from 6% 12% of one year s rent, or a fixed fee per sqm equal to this amount. Lease Renewal Each party pays its agent 5 7% of the annual rent. Legal Fees The landlord s solicitors normally prepare the lease agreement. However, it is often preferable for a tenant to provide lease text in negotiations. Legal fees vary widely depending upon the role of legal counsel. Other Transaction Costs Stamp Duty: No stamp duty exists. Lease Registration Costs: The landlord and the tenant generally split these costs equally. OTHER LEASE PROVISIONS Laws and Practices The Russian Civil Code grants preferential renewal rights to existing tenants. These rights generally are negotiable. Reasonable legal protection exists, with standards for dealing with leasing contracts and landlord responsibilities. Parties typically sign a non-binding letter of intent in which the landlord will not actively market the space and the tenant and landlord agree to sign a binding agreement. Many transactions for Class A space are on newly built space for which the landlord does not expect to have title until several months after state commissioning. In the interim, the tenant can occupy the space based on a preliminary agreement that later becomes part of the full lease agreement, which is executed once title is received. When a tenant leases space that is not newly built, the parties sign a lease without a preliminary agreement. Russian Federation Page 175 of 309

Standard Lease There are no standard lease contracts. Each landlord s solicitors prepare a lease contract. Right to Sublet Subletting is a common right, subject to landlord s approval, not unreasonably withheld. Option to Expand & Right of First Refusal Late Delivery by Landlord This is achievable for anchor tenants. A typical penalty is one day rent-free for each day of delay. Holdover by Tenant Penalties can range from 140 200% of rent. Signage and Naming of Building Signage can be permitted in lobby and floor entrance areas. Large tenants can negotiate external signage in front of the main entrance, or occasionally, on the building itself. Additional charges can be incurred for signage. A major tenant sometimes gets naming rights. Other Lease Provisions For a lease extension, a right of first refusal is standard. For expansion space, it is typically achieved only by anchor tenants. OFFICE LEASING MARKET Transparency For Moscow, comparables, which identify names of tenants, square meters, rents and incentives, are generally available for recent transactions. Building Classification Only modern office stock (Class A, Class B+, & Class B ) is classified. To be classified as Class A, Class B+, or Class B, a building should meet all relevant criteria except for one Must criterion and four Optional criteria. Buildings that do not meet the above parameters are classified as Class C buildings. Class A Buildings Required Features Building Management System (BMS). Heating, Ventilation and Air Conditioning (HVAC): Capacity to provide 24-hour cooling in server rooms. Temperature in office areas 22 23 degrees Celsius, +/ 1 degree. Fresh air supply 60 cubic m per hour per ten sqm of office rentable space, according to planned occupancy. Modern fire security system. Elevators: Modern high-quality speed elevators from major international brands. Power Supply: Two independent sources of power supply with automatic change-over or diesel generator power supply system as emergency back-up (power supply should be a minimum 70 VA of one-time electric load per one sqm effective office space), UPS for emergency systems. Security System: Modern security system and access control (including CCTV at all entrance points and parking areas, electronic card access, 24-hour security personnel). Clear Ceiling Height: 2.7 2.8 m and over. Layout: Open floor plates, efficient layout. Regular column grid not less than 6X6. Recommended: For 90% of usable area distance from windows to columns should not be less than 4m. Floor plate not less than 1000 sqm and regular column grid 8X8 or 9X9 are more efficient. Loss Factor: Building loss factor not exceeding 12%. Loss factor = 1 (USF/RSF)*100%. Areas are calculated according to BOMA standards. Russian Federation Page 176 of 309

Load Bearing Capacity: Not less than 400 kg/sqm. Fit-Out of Common Areas and Facade Finishing: High quality materials used in fit-out of common areas and façade finishing. Raised Floors: Building is designed for full value raised floor installation. However, this is optional for buildings delivered before 2005. Location: Good building location, an absence of nearby objects that can have a negative impact on a building s image (e.g., functioning industrial buildings, cemeteries, dumps, prisons, etc.). Transport Access: Convenient vehicular and public transport access, i.e., 10 15 minute walk from nearest metro station or an adequately organized shuttle-bus service. Parking Type: Underground parking or multilevel parking with covered walkway to building. Surface guest parking. Recommended: Convenient access for cars to underground parking. Parking Ratio for buildings in St. Petersburg: 1) Center of the city: not less than one space per 100 sqm of leasable area (1/100); 2) Industrial zone: not less than 1/80; 3) Peripheral zone: not less than 1/60; 4) Along KAD track direction: 1/40 or more. Single Ownership: Building is not sold by floors or blocks to different owners. Professional property management company with at least five buildings under management (at least 5000 sqm each) or with relevant international experience. Telecom Providers: At least two independent high-quality telecom providers in building. Amenities: Professionally organized staff cafeteria adequate to building size and population; and at least two more amenities in building: ATM, news agency, dry cleaning, shops, etc. Infrastructure nearby should also be considered. Optional Features Floor Depth: Floor depth not more than 18 20 m from window to window. Not more than 9 10 m from window to floor plate core and 12 m for buildings with non-regular forms and atriums. Lighting and Window Grid: Modern high-quality windows providing sufficient natural lighting, rational window grid. Parking Ratio for buildings in Moscow: 1) Within Garden Ring: not less than one space per 100 sqm of leasable area (1/100); 2) outside Garden Ring, within Third Ring Road: not less than 1/80; 3) Outside Third Ring Road and within ten km from MKAD (along track direction to city center): not less than 1/60; 4) Ten km from MKAD (along track direction to city center) and further: not less than 1/30 1/40. Transparent ownership structure. Lobby: Efficiently organized reception area appropriate to building size, providing convenient access to building. Class B+ Buildings Required Features Heating, Ventilation and Air Conditioning (HVAC). Modern Fire Security System. Elevators: Modern high-quality speed elevators from major international brands. Layout: Open floor plates for whole or more than 50% of office rentable area, efficient layout. Fit-Out of Common Areas and Façade Finishing: Quality materials used in fit-out of common areas and façade finishing. Parking Type: Organized secured parking. Recommended: Underground parking for newly constructed buildings. Well-organized property management. Telecom Providers: At least two independent high-quality telecom providers in building. Optional Features Russian Federation Page 177 of 309

Building Management System (BMS). HVAC Capacities Recommended: Capacity to provide 24-hour cooling in server rooms. Temperature in office areas 22 23 degrees Celsius, +/ 1 degree. Fresh air supply 60 cubic m per hour per ten sqm of office rentable space, according to planned occupancy. Power Supply: Two independent sources of power supply with automatic change-over or diesel generator power supply system as emergency back-up (power supply should be a minimum 70 VA of one-time electric load per one sqm effective office space), UPS for emergency systems. Security System: CCTV at all entrance points, 24-hour security personnel. Recommendation: Electronic card access. Clear Ceiling Height: 2.7 2.8 m and over. Floor Depth: Floor depth not more than 18 20 m from window to window. Not more than 9 10 m from window to window to floor plate core and 12 m for buildings with non-regular forms and atriums. Loss Factor: Building loss factor not exceeding 12%. Loss factor = 1 (USF/RSF)*100%. Areas are calculated according to BOMA standards. Load Bearing Capacity: Not less than 400 kg/ sqm. Lighting and Window Grid: Modern high-quality windows providing sufficient natural lighting, rational window grid. Transport Access: Convenient vehicular and public transport access, i.e., 10 15 minute walk from nearest metro station or an adequately organized shuttle-bus service. Parking Ratio for Buildings in Moscow: 1) Within Garden Ring: not less than one space per 100 sqm of leasable area (1/100); 2) outside Garden Ring, within Third Ring Road: not less than 1/80; 3) Outside Third Ring Road and within ten km from MKAD (along track direction to city center): not less than 1/60; 4) Ten km from MKAD (along track direction to city center) and further: not less than 1/30 1/40. Parking Ratio for Buildings in In St Petersburg: 1) Center of the city: not less than one space per 100 sqm of leasable area (1/100); 2) Industrial zone: not less than 1/80; 3) Peripheral zone: not less than 1/60; 4) Along KAD track direction: 1/40 or more. Transparent ownership structure. Lobby: Efficiently organized reception area appropriate to building size, providing convenient access to building. Amenities: Staff cafeteria and other amenities in building: ATM, news agency, dry cleaning, shops, etc. Infrastructure nearby should also be considered. Class B Buildings Required Features Modern Fire Security System. Elevators: Modern elevators required for three-story buildings and higher. Fit-out of Common Areas and Façade Finishing: Quality materials used in fit-out of common areas and façade finishing. Property Management: Well-organized property management. Optional Features Heating, Ventilation and Air Conditioning (HVAC). Power Supply: Two independent sources of power supply with automatic change-over or diesel generator power supply system as emergency back-up (power supply should be a minimum 70 VA of one-time electric load per one sqm effective office space), UPS for emergency systems. Security system: CCTV at all entrance points, 24-hour security personnel. Recommendation: electronic card access. Clear Ceiling Height: 2.7 2.8 m and over. Layout: Open floor plates for whole or more than 50% of office rentable area, efficient layout. Russian Federation Page 178 of 309

Floor Depth: Floor depth not more than 18 20 m from window to window. Not more than 9 10 m from window to window to floor plate core and 12 m for buildings with non-regular forms and atriums. Loss Factor: Building loss factor not exceeding 12%. Loss factor = 1 (USF/RSF)*100%. Areas are calculated according to BOMA standards. Load Bearing Capacity: Not less than 400 kg/sqm. Lighting and Window Grid: Modern high-quality windows providing sufficient natural lighting, rational window grid. Parking Type: Organized secured parking. Recommendation: Underground parking for newly constructed buildings. Parking Ratio for Buildings in Moscow:1) Within Garden Ring: not less than one space per 100 sqm of leasable area (1/100); 2) outside Garden Ring, within Third Ring Road: not less than 1/80; 3) outside Third Ring Road and within ten km from MKAD (along track direction to city center): not less than 1/60; 4) ten km from MKAD (along track direction to city center) and further: not less than 1/30 1/40. Parking Ratio for Buildings in St. Petersburg: 1) Center of the city: not less than one space per 100 sqm of leasable area (1/100); 2) Industrial zone: not less than 1/80; 3) Peripheral zone: not less than 1/60; 4) Along KAD track direction: 1/40 or more. Transparent Ownership Structure. Telecom Providers: At least two independent high-quality telecom providers in building. Amenities: Staff cafeteria and other amenities in building: ATM, news agency, dry cleaning, shops, etc. Infrastructure nearby should also be considered. Information contained herein, including projections, has been obtained from sources believed to be 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 confirm independently its accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of the CBRE Global Chief Economist. Russian Federation Page 179 of 309

Saudi Arabia What s Typical? Term Breaks Renewals Rent basis Free rent Escalation Security Fit-out Tenant s broker Right to sublet Transparency Negotiable. 2 5 years typical Not typical but increasing Typically, 1 3 years Net Sometimes 1 3 months None during term 1 3 months rent Usually tenant, sometimes landlord who recovers cost in rent Tenant pays Sometimes allowed Low CBRE Offices Manama +973 1655 6600 For More Information About CBRE Saudi Arabia www.cbre.bh About CBRE Saudi Arabia Research For Local Market Reports http://gkc3.cbre.com/search/search.aspx Contact Mr. Steve Mayes Manager +973 1655 6607 steve.mayes@cbre.com Saudi Arabia Page 180 of 309

LEASE LENGTH Term Lease terms are negotiable. Two to five years with renewal option, is typical. Termination or Break Break options are not typical, but are becoming more common. Renewal Most leases have renewal options. Renewal terms are typically from one to three years. SPACE MEASUREMENT Space Measurement Areas are normally quoted on a net basis. Definitions There are no uniform accepted measurement standards or accepted measurement protocol. However, the net area usually excludes shared bathrooms, elevator shafts, and other core elements on partial floors in international Class A buildings. In other buildings, the net area normally includes toilets, elevators, and other core elements. OCCUPANCY COSTS Rent Rental: The tenant pays rental including service charges and taxes in Saudi Arabia Riyals (SAR). Rent Payable: Tenants often pay rent annually or twice a year in advance, but some tenants negotiate quarterly payments. Free Rent: Some owners agree to a rent-free period as a contribution to fit out costs, usually 1 3 months. Rent Escalation: There is no rent escalation during the lease term. Car Parking: tenants are usually entitled to one car parking space free of charge for every 100 sqm of Class A space leased. VAT does not apply to rent. Building Service Charges Building service charges are also called tenant service charges. These are the tenant s proportional contribution towards building maintenance and services. These typically amount to 10 20% of the rental rate. Taxes There are no property taxes levied in the Kingdom of Saudi Arabia. Utilities Tenants pay the provider directly for their electricity and water consumption based on metered usage. The provider is a municipality-owned utility company that supplies both water and electricity. Saudi Arabia Page 181 of 309

Fit-Out Landlord Work: Landlords normally deliver a core and shell. Bathrooms are included only in rare international Grade A buildings. Tenant Work: Suspended ceilings, ceiling lighting, air conditioning system, and ductwork are normally considered tenant work. Toilets are tenant work, except in International Grade A buildings. Tenants normally pay all fit-out costs, although sometimes landlords do fit-out work and recover the costs through the rent. Fit-out costs for Class A or Prime buildings in major cities normally range from SAR 2500 3000 per square metre, including construction, furniture, wiring, etc. Restoration Tenants normally must restore the premises when they vacate. However, they may be able to negotiate at notice to exit without restoration if they leave the premises in a good condition. Security Deposits and Guarantees A typical security deposit is for one to three months rent. Car Parking Car parking spaces are normally included in the rent. TRANSACTION COSTS Agency Fees In Saudi Arabia the tenant pays agency fees as outlined below. Landlords do not list their properties with brokers, and do not pay agency fees. Local brokers tend to charge fees at the high end of the ranges shown below. New Lease Acquisition: Tenant pays its agent a fee that ranges from 8.33 12% of annual rent. Sublease: if allowed by the landlord, subtenant pays its agent a fee that ranges from 8.33 12% of annual rent. Lease Renewal: Tenant pays its agent 7.5% of annual rent. Legal Fees Typically neither landlords nor tenants (except for international corporations) use lawyers in negotiating lease. OTHER LEASE PROVISIONS Laws and Practices There is no civil code or lease law covering office leasing. Standard Lease There is no standard lease. Landlords use their own leases. Right to Sublet Sometimes allowed. OFFICE LEASING MARKET Market Practices The international office market in Riyadh is about 20 years, old and immature by international standards. Until 2011 2012 demand exceeded supply, and therefore landlords were reluctant to grant incentives or negotiate much the terms of the lease. With an oversupply of office space looming, landlords may become more flexible. Saudi Arabia Page 182 of 309

Transparency Generally, information on rentals in Saudi Arabia is not easily accessible. Building Classification Grade A: In early 2012 Riyadh has two building complexes built to international Grade A standards. Grade B: Buildings that are considered Grade A locally are comparable to Class B buildings internationally. Information contained herein, including projections, has been obtained from sources believed to be 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 confirm independently its accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of the CBRE Global Chief Economist. Saudi Arabia Page 183 of 309

Serbia What s Typical? Term Breaks Renewals Rent basis Rent free Escalation Security Fit-out Tenant broker Right to sublet Transparency 3 5 years typical Negotiable with penalties Negotiable Net 3 6 months. Longer for longer leases Annual EUROSTAT index 3 months gross rent Standard fit-out included in rent. Varies among buildings Tenant pays Written consent from the Landlord needed Terms of done deals available for Belgrade, but not elsewhere CBRE Offices Belgrade +381 11 22 58 777 For More Information About CBRE Serbia http://www.cbre.rs/about.php About CBRE Serbia Research http://www.cbre.rs/research.php For Local Market Reports http://gkc3.cbre.com/search/search.aspx Contact Milica Nikolic Head of Office Agency +381 11 22 58 777 milica.nikolic@cbre.rs Serbia Page 184 of 309

LEASE LENGTH Term Commercial leases run for a limited number of years, usually for 3 5 years, with possible exit clauses with penalties for early termination. Termination or Break A break clause is usually included in the lease agreement that can be exercised after the end of the third year. The most common notice period is 6 months. Renewal The tenant has a right of renewal only if stipulated in the lease. SPACE MEASUREMENT Space Measurement Office measurements are on net internal area, which includes kitchens and restrooms, internal walls and circulation space, but excludes vertical penetrations and structural walls. OCCUPANCY COSTS Rent Rents Quoted: Rents are normally quoted on a net basis in EUR/sqm/month. Service charges and VAT are additional. Rent Payable: Rent together with the service charge, is payable monthly or quarterly in advance. Rent Free Period: Landlords grant rent free periods of 3 6 months as an additional incentive. Some landlords grant rent free periods of up to nine months for contracts exceeding five years. Rent Escalation: Rent increases are negotiable and may be linked to the consumer price index (CPI) and adjusted annually. Repairs: The landlord is normally responsible for structural repairs and external repairs. In multi-let buildings, the landlord is responsible for major repairs to common areas. The cost is generally not recoverable from the tenant. Serbia Page 185 of 309

Service Charges The tenant pays service charges. For Grade A office space, service charges are generally around EUR 2.5 3.2/sqm/month, depending on costs included. Service charges typically include: Maintenance and repair of the common areas, car parks, surroundings and general facilities of the building The cost of maintenance staff, including provision of staff facilities Heating and air conditioning of the leased premises Heating, air conditioning and all public utility costs for common areas Telecommunication costs of general services Computer-controlled fire safety systems The costs of employment of reception staff, security and related expenses Provision of sinking fund for the renewal and overhaul of equipment and installations of the building Cleaning, maintenance and repair of the common areas, indoor and outdoor Property insurance costs Any costs arising from governmental regulations and requirements in connection with the maintenance, repair, replacement and renewal if required, and operation and use of the building Any taxes and property charges related to the building Management charges Taxes Value Added Tax (VAT): VAT at 18% is payable on rent, service charges, agents fees, legal fees, notary costs, and car parking. Most companies (but not banks, federations and associations) can recover VAT. Property Tax: The local real estate tax is 0.4% of the property value, for all classes of office space, and is recoverable from the tenant as a part of the service charges. The amount of tax is based on a complex calculation, done by the local authorities. Land tax: The tenant pays this, which the municipality calculates. The amount is based on the floor area occupied by each tenant. Utilities The cost of electricity consumption (excluding heating/cooling) is not included in the service charge. The tenant pays this separately based on a meter. The tenant pays for telephone and IT services. Fit-Out The landlord typically delivers a standard fit-out, which includes lighted suspended ceilings, carpeting, 40 sqm of gypsum walls for each 100 sqm of space and one work station at each 10 12 sqm equipped with two electrical sockets. Some buildings are delivered with raised floors and IT cabling in the standard fit-out, but without partitioning or carpet, which tenant pays for unless otherwise negotiated. Tenants normally pay for glazed partitions, computer network and related equipment, and gypsum walls exceeding the standard fit-out. If the tenant has a large number of offices, then certain costs may arise from HVAC upgrading. The tenant pays for this work, which is normally carried out by the landlord s contractors. A landlord s standard fit-out budget for a Grade A building is usually around EUR 150 per sqm. Restoration The tenant is normally responsible for restoration to original condition, unless otherwise negotiated and stipulated in the lease. Security Deposits and Guarantees Landlords usually require a deposit of three months gross rent, or a rental guarantee from a bank that allows the landlord to withdraw a guaranteed sum if the tenant does not pay rent or otherwise fulfill its obligations. Serbia Page 186 of 309

Car Parking Typical monthly charges are EUR 70 100 per parking space per month in a garage; EUR 30 50 per parking space per month in an open parking lot. The tenant can usually rents one parking/garage space for each 40 65 sqm of offices leased, depending on the building. Extra parking is negotiable. Other Occupancy Costs Building signage cost is usually negotiable, and may be included in the rent for the office space. Additional cost for the sign is paid to the municipality, depending on the size and zone. TRANSACTION COSTS Agency Fees New Lease: The tenant normally pays it agent 10 12% of one year s rent. Lease Renewal: The fee depends on the lease contract and the agent s standard rates. Lease renewal fees average up to one month s rent. Rent Reviews: Fees are based on savings, and are negotiable. OTHER LEASE PROVISIONS Standard Lease All lease terms are governed by applicable Serbian law: the Law of Obligations. Most leases in Class A office buildings have similar lease terms and conditions. Right to Sublet Subletting is rare. The landlord has the right to negotiate and approve of any subtenant. Option to Expand & Right of First Refusal These options are defined in the lease agreement. High-profile tenants, or tenants that occupy a large portion of the building, can often reserve extra space by paying a reduced (ca. 25%) rent for this area until they expand. The terms that apply to this additional space (expansion date, size and rent) are stipulated in the lease agreement. Such space is considered preleased and cannot be offered to other interested parties. The rent that tenant pays (ca. 25%) to reserve the space is deductible later when the tenant takes the space. Sometimes an option to expand obligates the landlord to offer the tenant any available space over a certain size. The right of first refusal is common. Tenants have around one month to inform landlords of their interest in the offered space. Late Delivery by Landlord Late deliveries are addressed in lease agreements. Most commonly, the landlord must grant one day of the rent free for each day of late delivery. Holdover by Tenant No penalties apply unless stipulated in the rental agreement. Signage and Naming of Building Typically, the cost of signs at the entrance is included in the rent. Additional signs and illuminated signs on the façade and roof are normally negotiable, but legal restrictions exist, especially to protect historic buildings. Serbia Page 187 of 309

OFFICE LEASING MARKET Transparency In Belgrade, information on comparable deals (tenants, square meters and rents) is generally available for recent transactions. For markets outside of Belgrade, such information is difficult to obtain. Building Classification No standard building classification system exists in Serbia; however, CBRE uses the following classifications: Grade A Prime location with good access and communication (public transport, car access) Access to amenities (restaurants, cafeterias, shops etc.) Modern systems of heating, air-conditioning with humidity control and zone divisions, not interfering with effective office space devices (4 pipe HVAC preferably; 2 pipe HVAC) Suspended ceilings and raised floors (or possibility to install them) Flexibility of internal design Modern high speed elevators (speed of 1.6 2.5 m/s, capacity 8 13 persons (630 1000kg), connected to backup electrical supply) Good natural lighting of the office space Underground parking with direct access to/from the office building Security system- including security services and CCTV systems Ample parking BMS (Building Management System) incl. modern monitoring of the building and access control management Central fire control Multiple power supply with an automatic change-over Representative lobby area - optional Visitor s car parking places - optional Operable windows - optional Grade B A building is considered Grade B if some of the basic criteria for Class A buildings are not met. For example: The building is not located within a prime location No available parking within the building No BMS and security system No modern ventilation or heating-cooling system Existence of only one elevator in the building PURCHASE AND SALES Agency Fees The usual fee varies from 2.5 3.5% of the sale price Information contained herein, including projections, has been obtained from sources believed to be 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 confirm independently its accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of the CBRE Global Chief Economist. Serbia Page 188 of 309

South Africa What s Typical? Term Breaks Renewals Rent basis Free rent Escalation Security Fit-out Tenant s broker Legal fees Right to sublet Transparency 3 5 years Rare, except with long (e.g., 10-year) leases Negotiable Gross or net + operating costs Negotiable, sometimes 1 month Indexed annually 1 3 months rent. Depends on tenant s credit Landlord normally contributes Landlord pays Tenant pays landlord s lawyer to draw up the agreement Normally allowed with landlord s consent Limited. Terms of deals not shared CBRE Offices Johannesburg +27 11 441 4000 Bloemfontein +27 51 430 3008 Cape Town +27 21 419 7373 Durban +27 31 362 1700 Nelspruit +27 13 752 6671 Port Elizabeth +27 41 363 5559 Pretoria +27 12 362 3609 For More Information About CBRE South Africa http://www.broll.co.za About CBRE South Africa Research http://www.broll.co.za/research/ For Local Market Reports http://gkc3.cbre.com/search/search.aspx Contact Malcolm Horne CEO +27 (0)11 441 4035 mhorne@broll.co.za David Alcock Director +27 (0)11 441 4404 dalcock@broll.co.za Sanett Uys GM Research and Marketing +27 (0)21 446 2563 suys@broll.co.za South Africa Page 189 of 309

LEASE LENGTH Term Leases are typically for 3 5 years, sometimes longer or shorter, with fixed rentals and predetermined annual escalations. Monthly leases can sometimes be negotiated. Termination or Break Rare, except occasionally with long-term leases such as ten years. Renewal The tenant has a right to renew at the market rate if specified in the lease agreement. SPACE MEASUREMENT Space Measurement Areas are quoted net in square meters. Definitions Rentable Areas measure according to guidelines by South African Property Owners Association (SAPOA), which use the BOMA methods of measurement. Useable Area is the carpeted area including the internal pillars. Efficiency A typical ratio of usable area to rentable area in a Class A building in Johannesburg is 90%. OCCUPANCY COSTS Rent Rent Basis Gross Leases: Operating expenses, service charges and property taxes, known as assessment rates, are included in rents for leases in multi-tenant buildings and three to five year leases. Net Leases: Net leases generally apply on single-tenanted properties with strong tenant profiles and where leases are for five or more years. With net leases, the tenant pays net rental plus all property expenses. Rent Rents Quoted: Generally, rents in South Africa are quoted as gross rents in Rand (ZAR or R) per square meter per month. Rent Payable: Rents are payable monthly in advance. All rentals exclude VAT of 14%. Invariably, landlords split their rental into a net rental plus operating costs plus assessment rates. Free Rent: Sometimes one month is negotiable. Rent Escalation: Most leases provide for annual rental indexation. Although inflation has been contained at 7% over the past three years, rental and operating cost escalation is market driven and not related to the inflation rate. Rental Escalation in 2010-2011 has been: 8 9% Building Insurance Included in Rent: Insurance costs range from 0.18 0.25% of insured building value. The only instance when the landlord may not pay for building insurance is on a single tenant long lease which has invariably been built-to-suit. South Africa Page 190 of 309

Operating Costs Operating costs ( Op Cost ) are often specified separately from base rent in the lease. The sum of base rent and operating costs is equivalent to the gross rent. The purpose of the split is to enable the application of separate escalation rates to the operating costs and to the base rent. The escalation rate applied to operating cost is generally higher than the rate applied to the base rent. Operating costs generally cover all landlord expenses: maintenance, cleaning of the common areas, security, utility charges, insurance, assessment rates and any park levies. They do not include rent collection charges and regional service levies. Typical Operating Costs range between 15 20 ZAR/sqm for office space. Typical operating cost escalation in 2010-2011 was 8 9%. Taxes Property taxes are known as Assessment Rates or Rates. They are payable by the property owner and may or may not be fully recovered through the Op Cost and depend on terms negotiated. In many instances, tenants agree to pay only for increases calculated from lease commencement, prorated on a ratio of area occupied to total. From July 1, 2005, all property taxes are based on the capital value of the property. Utilities Water and electricity are metered for the area occupied or recovered according to the percentage of the area occupied. Fit-out The landlord generally fits out the premises to a reasonable standard to meet the tenant s requirements with standard carpeting, partitioning, ceilings and wall finishes, or provides an equivalent contribution toward the cost. For a Class A office building, a landlord may also hire an architect to develop the layout, and may contribute between 200 400 ZAR/sqm towards the tenant s fit-out costs depending on the length of the lease. A tenant s additional fit-out cost can range from 400 1000 ZAR/sqm. Restoration Landlord undertakes repairs and maintain the structure of the building and common parts. The tenant must bear the cost of leaving the premises in its original condition, fair wear and tear excluded. Security Deposits and Guarantees Deposits range from 1 3 months rent, depending on the tenant s credit rating. Car Parking Parking is charged separately in office parks, typically 300 650 ZAR/bay/month. Cape Town CBD has the highest rates, which can reach 1,150 ZAR/bay/month. Parking cost in single tenant buildings with long leases is typically included in the rent. Other Occupancy Costs Management Fees: Fees to manage the property are generally 2.5 4% of total receipts, and depend on the complexity of the revenue stream and number of tenants. Insurance: Cover contents and sometimes damage to the premises. South Africa Page 191 of 309

TRANSACTION COSTS Brokerage Commissions Landlords usually pay brokerage fees to brokers who represent them, but rarely appoint brokers on an exclusive basis. Tenant representation services are beginning to emerge. Tenants who are represented by brokers pay their broker s fee. Brokerage fees outlined below are levied on the gross rental including parking. New Lease The landlord typically pays its broker 13 25% of the first year s rent, depending on the length of lease. Tenants that are represented typically pay their broker 17 19% of the first year s rent. Renewals The landlord typically pays its broker 50% of the amount payable for a new lease. Tenants that are represented typically pay their broker 13 15% of the first year s rent. Legal Fees The tenant normally pays to the landlord the legal costs for the landlord s lawyer for drawing up the agreement. Tenant pays its own lawyer also. OTHER LEASE PROVISIONS Laws and Practices No Civil Code or lease law governs leases. The contract is negotiated. Standard Lease Each landlord has his own standard lease. Right to Sublet Parties normally agree that subletting is allowed only with the landlord s consent, which cannot be unreasonably withheld. Option to Expand & Right of First Refusal Late Delivery by Landlord This is negotiable. Negotiable and depends on the conditions stipulated in the contract. Holdover by Tenant Negotiable and depends on the conditions stipulated in the contract. Signage and Naming of Building Negotiable and depends on the conditions stipulated in the contract. South Africa Page 192 of 309

OFFICE LEASING MARKET Market Practices Sandton, Johannesburg, is South Africa s financial hub. Due to its proximity to the JSE Securities Exchange and Africa s busiest airport, Sandton is the preferred location for most stock brokerages, law firms, corporate consulting companies, and other high-image companies. This is likely to continue. Property practices elsewhere in the country, especially the coastal business centres of Durban (Africa s busiest port), Cape Town, and Port Elizabeth are similar to those in Johannesburg. Other than certain strategic coastal zones and demarcated rural tribal settlements, freehold rights are universal and entrenched in the Constitution. The well-managed Land Registry and the Surveyor General s database are accessible online. Transparency Market statistics are available through various publications, online subscription services and quarterly reviews. They include area reports, vacancy rates, average rentals and operating costs, capitalization rates, and discount rates. Information on names of tenants, rental rates agreed, and length of leases, is not generally available. Building Classification Grade P (Premier Grade) Landmark quality building; typically with modern space, good views prestige lobby, on-site undercover parking, and quality access to and from attractive street setting. Technology and Communication: Fully intelligent building with: full central control UPS with flexible points; vertical (high rise) and horizontal communication spaces sized for future generations; dedicated (or potential) individual patch rooms; high capacity and flexible telephone network system; high spec and certified fibre optical backbone.; CCTV system with digital camera and recording, sensors (heat and motion), event driven (chip technology); access control premised on hi-tech human security interface (retina, prints etc). Services: Security with high grade armed guards, patrol dogs, in multiple positions. Maintenance services of the highest caliber. Amenities, Finishes and Quality: Base finishes of the highest spec and appearance; fast, luxurious, and hitech elevators; wide stairwells with luxurious flooring and finishes permitting natural light; state of the art lobby and reception service; floor plate permitting high degree of space planning flexibility; efficient natural light penetration; state of the art HVAC permitting a high degree of control and environmental flexibility; high quality landscaping; many support amenities and services, either on-site or as part of a functional complex; fully fitted kitchen and catering facilities for tenant use. Parking: High ratio (5 or more per 100 sqm) covered parking. Age: Generally less than 10 years and well maintained. Public Environment: Street and foyer interface with visible security, pristine environment; additional public management initiative with visible benefits; direct involvement in improvement district and private services, with active implementation; best visibility and exposure in area; vehicular access clear, fast, with multiple ingress and egress points. Grade A Generally not older than 10 years unless renovated; prime location; high-quality finishes; adequate on-site parking; air-conditioning. Technology and Communication: Provision for individual UPS TI; vertical (high rise) and horizontal communication spaces with spare capacity above the average requirement; patch rooms on every floor; telephone network compatible with high spec system; cabling and network infrastructure premised on CAT5e std plus, plug and play and internet ready; CCTV permitting large coverage with multiple recording; online access control system with proximity readers, unique tags, and +6 access levels. Services: Security with graded guards at entry points, with patrols, and a guard monitoring system; quality maintenance services. Amenities, Finishes and Quality: High material spec, functional design base finishes; fast elevators; high South Africa Page 193 of 309

spec stairwells; lobby and reception of quality finishes and appearance and service; general floor plate permitting design flexibility; good balance between light and environmental control; central environmental control premised on typical building management system with quality split system incorporated; attractive and functional landscaping; limited on site amenities but close at hand and in safe walking and driving proximity; kitchen and catering facilities available individually or on shared basis. Parking: Adequate parking on site; mostly shaded or covered. Age and Upgrading: Generally 10 30 years and /or major renovation. Public Environment: Safe, attractive and clean street and foyer interface; surrounding public environment comprising good infrastructure; Improvement District and Private services involvement or plans; good exposure and visibility; vehicular access only occasionally hindered, locality has good access to freeways. Grade B Generally 10 to 20 years old unless renovated; accommodation to modern standards; prime location; airconditioning and on-site parking. Technology and Communication: Clean power with back-up generators only to critical areas; adequate communication spaces for current demand; patch rooms adequately sized with some capacity; basic 3X3 grid and sufficient cabling for telephone network flexibility; cabling and network infrastructure based on lower technology and Certified CAT5, 2 RJ45 s and point; CCTV with a few coverage points and standard to low and or no recording capacity; Access Control on 3 6 levels. Services: Qualified security company, low-mid grade guards at entry points, armed response; efficient maintenance services. Amenities, Finishes and Quality: Base finishes of functional and pleasant design and compliant specifications; comfortable elevators in working order; stairwells permitting comfortable and safe passage; pleasant and functional central lobby and reception; general floor plate allowing some flexibility; some and adequate natural lighting; central environmental control based on electro pneumatic system with limited flexibility; well functioning AC units and natural ventilation permitted; basic landscaping and greening. Parking: Adequate parking available on and off site; mostly open or shade cloth. Age and Upgrading: Any age; adequately upgraded and refurbished to modern standards. Public Environment: Safe and clean street and foyer interface; visible maintenance of infrastructure; Vehicular access generally unhindered except at peak times. Grade C Generally 20 to 30 years old unless renovated; in fairly good condition, although finishes are not up to modern standards; good location; may have on-site parking; unlikely to be centrally air-conditioned. Technology and Communication: Back-up generator service may be poor; communication spaces may be adequate but inflexible for future demand; telephone network system offering low flexibility and capacity; cabling and network infrastructure of low flexibility; CCTV permitting low coverage and no recording capacity; access control generally an offline system and only on entry points. Services: Security comprising unqualified and unregistered security personnel. Amenities, Finishes and Quality: General finishes are dated, unattractive, worn, and of poorer spec; slow or old elevators; narrow and dark stairwells; poorer quality lobby and limited reception services; poor flexibility of general floor plate; low natural lighting; inflexible pneumatic and old tech environmental control; poor natural ventilation; limited and poorly maintained vegetation and greening; amenities not at hand. Parking: Inadequate but safe parking, generally offsite. Age and Upgrading: Generally older building, visibly ageing and/or no sign of upgrading. Public Environment: Poor street and foyer interface and surrounding public environment; relatively poor exposure and access; general delays and hindrances for vehicular access and/or one access point. Grade D A building reaching the end of its functional life; old and in poor condition; near the bottom of the rental rate range; typically no air-conditioning and no on-site parking; may have good location. Subdivision of Grades South Africa Page 194 of 309

These grades are sometimes sub-divided into sub-grades A+, A, B+, B, C+ or C-. Information contained herein, including projections, has been obtained from sources believed to be 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 confirm independently its accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of the CBRE Global Chief Economist. South Africa Page 195 of 309

Slovakia What s Typical? Term Breaks Renewals Rent basis Free rent Escalation Security Fit-out Tenant broker Right to sublet Transparency 3 5 years typical Negotiable, sometimes penalty Negotiable Net 1 month per year of lease Indexed annually 3 6 months gross rent Standard fit-out included in rent Tenant pays Normally allowed with restrictions Terms of done deals available for Bratislava CBRE Offices Bratislava +421 2 3255 3300 For More Information About CBRE Slovakia http://www.cbre.sk/sk_en About CBRE Slovakia Research http://www.cbre.sk/portal/page/portal/sk_e n/research For Local Market Reports http://gkc3.cbre.com/search/search.aspx Contact Tomas Hegedus Managing Director +421 2 3255 3302 tomas.hegedus@cbre.com Jana Kovácová Researcher +421 2 3255 3329 jana.kovacova@cbre.com Slovakia Page 196 of 309

LEASE LENGTH Term Leases are typically for 3 5 years, sometimes up to ten years, with fixed rents and predetermined annual indexations (i.e., predetermined rate of the CPI increase). Termination or Break An option to terminate is negotiable, and may provide for a penalty if exercised. Renewal An option to renew is negotiable. SPACE MEASUREMENT Space Measurement The standard for measurement of gross lettable and net lettable areas varies depending on the developer. Both the BOMA and German GIF guidelines are among the accepted standards, however, internal measurement of carpetable area is accepted as well. Landlords most often quote on a gross lettable area basis, although they sometimes quote the net lettable area instead or in addition. Definitions Carpetable Area: Area available for office use, excluding toilets. Net Lettable Area: Measures from internal wall to internal wall, includes toilets, but excludes columns and vertical penetrations. The net lettable area is typically about 4% greater than the carpetable area. Gross Lettable Area: Includes net lettable area, plus add-on factor (typically 5 10% for a Class A building in Bratislava) plus common areas such as toilets and corridors shared by more than one tenant, which is not included in add-on factor. OCCUPANCY COSTS Rent Rent Quoted: Headline (i.e. base) rents are quoted on a net basis in EUR/sqm/month. Rent Payable: Quarterly or monthly in advance. Free Rent: Negotiable. Free rent is typically up to one month free for each year of the lease. Included in Rent: The landlord usually pays for external and structural repairs. Rent Escalation: Leases generally provide for an annual escalation, normally based on the HICP (Harmonised Index of Consumer Prices) index. Fixed rent increases can sometimes be agreed to and stipulated in the lease. Service Charges Also called operating costs, this is the tenant s proportionate contribution of the cost of maintaining common areas and services. The service charge covers: Operating, maintaining, cleaning and repairs of lighting, air conditioning, plumbing, drainage, sewerage, fire prevention, elevators and telecommunication systems in the building, electricity in common areas, building security, etc. Property Tax: The landlord pays the tax and recovers it via service charges. Building and Property Insurance. A typical service charge in a Class A building in Bratislava is around EUR 3.50 4.50 per square meter per month. Service charges are usually on an open-book basis and recalculated annually according to actual cost. Slovakia Page 197 of 309

Taxes Property Tax: The landlord pays the property tax and recovers it via service charges. Value Added Tax (VAT): Slovakia has a flat VAT rate of 20%. Utilities Electricity and Air Conditioning: Electricity in the leased area is usually metered. The tenant pays for actual consumption, generally including electricity for air conditioning or air-cooling. It is sometimes included as part of the service charge. Telephone Lines: The landlord provides telephone lines through its switchboards or the telecom supplier provides them. The tenant pays either the landlord or supplier according to usage. Telecommunication Charges: The tenant usually must arrange and pay for telecom services directly with suppliers. Tenant Improvements Landlord Work: The landlord usually provides a standard fit-out including carpeting, suspended ceilings, ceiling lighting, raised floors, perimeter trunking, and interior partitions. Sometimes the landlord provides above-standard fit-out work, and the tenant pays the additional cost up-front. Tenant Work: The landlord usually allows the tenant to do fit-out using the tenant s architects, engineers, and contractors. The lease contract usually specifies that the landlord may not unreasonably withhold its approval of the tenant s fit-out. Tenant Work Cost: Fit-out costs, paid by landlord, for Class A or Prime buildings in Bratislava normally range from EUR 150 300 per sqm including construction, wiring, design fees, etc. Restoration The tenant is usually allowed to vacate the premises in a condition of normal wear and tear, but this is negotiable. Landlords of Class A buildings usually require restoration of fit-out by the tenant. Security Deposits and Guarantees Usually a cash deposit; sometimes a bank guarantee. Typically three months rent plus service charge and VAT for an established company; six for a start-up company. A parent company guarantee is sometimes given in addition to or instead. Car Parking Parking spaces are allocated based on a ratio, which ranges from one parking space per 35 sqm of space leased in Bratislava s Periphery to one lot per 200 sqm of space leased in the city center. Tenants pay extra for parking spaces, commonly EUR 40 per space in the periphery and EUR 120 per space in the city center. Other Occupancy Costs Insurance: The tenant pays directly for third-party insurance, insurance for rented premises and its contents. TRANSACTION COSTS General Transaction Costs The landlord s solicitors normally prepare the lease agreement. No standard lease contract exists. Owner occupancy is rare. Slovakia Page 198 of 309

Agency Fees New Leases and Renewals: Separate agents normally represent tenants and landlords, and each party pays its agent or agents a negotiable fee, typically 8 15% of the average annual rent, depending on the value of the lease. If the agent represents a tenant on a new lease or renewal, the fee can include a fixed part plus cost-saving part. The cost saving is calculated as the difference between costs in the landlord s offer and the costs in the final deal. Reputable real estate agents take fees from both the landlord and the tenant only if agreed by both landlord and tenant. Subleases: The sublandlord pays its agent a fee. The fee for subleases is typically the same as with direct leases. Legal Fees Each party pays its lawyer s fees. Other Transaction Costs No stamp duty applies. OTHER LEASE PROVISIONS Standard Lease No standard lease contract exists. The landlord s solicitors normally prepare the lease agreement. Right to Sublet Subletting is normally allowed, subject to the landlord s reasonable written consent, sometimes with restrictions. Option to Expand & Right of First Refusal Late Delivery by Landlord Options to expand and the right of first refusal are negotiable. Penalties for late delivery vary widely, are negotiable, and are specified in the lease. Typically, tenants can negotiate for the landlord to pay double the rent for late delivery. Holdover by Tenant Typically, the contract states that the tenant must pay double the daily rent for holding over after lease expiration. Signage and Naming of Building The major tenant in a building generally has naming or signage rights if the building provides such a right. OFFICE LEASING MARKET Market Practices Owner occupancy is rare. Transparency Data is generally available for recent transactions in Bratislava, including tenant names, square meters, rents and incentives. Transparency outside of Bratislava is still limited, due to the limited size of other real estate markets. Slovakia Page 199 of 309

Building Classification Class A: All of the following hard criteria must be met: (1) Modern cable management, which can be any of the following: raised floors, suspended ceiling, suspended ceiling with flexible pole, simple provision for under floor cabling, compartment trunking. (2) Modern air handling system: including VAV, 4-pipe fan coil, 2-pipe fan coil and cooler beam system. (3) Secure dedicated parking: CBD 1:100, central 1:75, non-central and periphery 1:50. (4) High-quality standard finish. (5) 24-hour access and security. Five of the seven soft criteria must be met: (1) High speed modern lifts. (2) Clear ceiling height of at least 2.65 m. (3) Prestige / quality reception. (4) Quality finish to work areas. (5) Flexible partitioning or moveable walls. (6) Doubleglazed windows or anti-glare glass. (7) Services in the building or immediate vicinity: e.g., restaurant, shops, post offices, dry cleaners. Class B: Similar standard of design and finish as for Class A. Reduced services. Partial air handling system. Quality of building design and materials inferior to those of Class A. Ratio of dedicated car parking to the area occupied is lower than for Class A. Class C: Generally un-refurbished, Soviet-era buildings. Information contained herein, including projections, has been obtained from sources believed to be 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 confirm independently its accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of the CBRE Global Chief Economist. Slovakia Page 200 of 309

Spain What s Typical? Term Breaks Renewals Rent basis Free rent Escalation 3 years typical Break options rare Options usually included in the lease contract Net Negotiable, 3 months per year of lease common Indexed annually Security 2 months deposit to IVIMA + 6 12 months bank guarantee Tenant broker Tenant pays Fit-out Landlord contributes partially Right to sublet Common Transparency High for Madrid and Barcelona Workplace Natural light required CBRE Offices Barcelona +34 93 444 7700 Madrid +34 91 598 1900 Malaga +34 952 070 710 Marbella +34 95 276 5130 Palma de Mallorca +34 971 45 67 68 Valencia +34 96 316 2890 Zaragoza +34 97 648 4635 For More Information About CBRE Spain http://www.cbre.es/es_en About CBRE Spain Research http://www.cbre.es/es_en/research For Local Market Reports http://gkc3.cbre.com/search/search.aspx Contact Alfonso Galobart Marone Executive Managing Director +34 91 514 3840 alfonso.galobart@cbre.com Patricio Palomar Murillo Head of Research +34 91 598 1900 patricio.palomar@cbre.com Spain Page 201 of 309

LEASE LENGTH Term The term is negotiable: For spaces under 1500 sqm: a three-year obligatory period plus a two-year renewal option for the tenant is typical. For spaces over 1500 sqm: a three to five-year obligatory period plus a three-year renewal option for the tenant is typical. For spaces over 5000 sqm For large corporations negotiating spaces in excess of 5000 sqm, the term is usually 5+5. Termination or Break The right to terminate the lease early is rare. Renewal Almost 90% of leases signed in Madrid and Barcelona have an option to renew, which is normally linked with a rent review to market. SPACE MEASUREMENT Definitions The quoted area is known as total lettable or superficie bruta alquilable. It includes walls and windows, corridors, toilets and common areas of the building such as lobbies. It excludes elevators, stairways and vertical shafts. In the lease contract, a clause may say superficie alquilada como cuerpo cierto, which means that both parties accept measurement. This total lettable area represents about a 20 30% increase over net areas, known in Spain as superficie til or superficie neta utilizable (net area or net internal area in Europe; net usable area in U.S.), which is area measured from the internal side of walls. It includes columns, fan coils and toilets if they are inside the premises and for the private use of the tenant. Efficiency A typical ratio of net area to total lettable area in a Class A building in Madrid is 70 80%. OCCUPANCY COSTS Rent Rent Quoted: On a net basis in EUR/sqm/month. Rent Payable: Monthly in advance. Escalation: Rent is normally indexed annually (to the national CPI or occasionally to a provincial index or a letting index) with open market review every 3 5 years. The Instituto Nacional de Estadstica publishes these indices monthly on the Internet. Free Rent: Negotiable, 3 months per year of lease common. Spain Page 202 of 309

Service Charges The tenant pays service charges separately from rent. In some cases, landlords also apply service charges to parking spaces. Service charges include: Building Management Fees: Management fees are usually 3% of the rental income. Water charges are included in service charges. Security, cleaning of common areas, maintenance and repair of installations, water consumption (based on the area a tenant occupies, this is estimated at EUR 0.84/sqm/year), building insurance and civil responsibility insurance. In Madrid and Barcelona, service charges for a Class A buildings range from EUR 4 5/sqm/month and up to EUR 7/sqm/month in some modern high-rise buildings. Taxes VAT is 18% of rent and service charges, and is recoverable in certain circumstances. Municipal Property Taxes: In over 50% of cases, the landlord adds this tax, the IBI, to service charges (average EUR 0.90 2.00/sqm/month in Madrid and EUR 0.80 1.95/sqm/month in Barcelona for a Class A building. The tenant pays increases if agreed in the lease contract. An annual rubbish collection charge is applicable in Madrid, but this is included in the municipal property tax. In Madrid, the town council invoices the landlord, but authorizes this to be recovered from tenants. The cost is approximately EUR 1.92/sqm/year. Utilities The following utilities are paid by the tenant in addition to service charges: Electricity: Tenant s electricity consumption is metered and payable directly to the electricity company. The cost is estimated at EUR 1.55 2.75/sqm/year. Air Conditioning: In most modern buildings (built in the last 7 10 years) the air conditioning equipment is separate for each tenant, and so the electricity to operate it is billed directly to the tenant. Older office buildings generally provide centralized air conditioning to all tenants. Air conditioning costs are divided among the tenants according to the amount of space each occupies. Tenants in these buildings pay air conditioning costs in the service charges. Cleaning: Tenants individually contract the cleaning of their office space, although the landlord may offer this service and charge separately. In many office towers the landlord obliges the tenant to use a specified cleaning service for security reasons. Fit-Out Landlords typically provide suspended ceilings, ceiling lighting, raised floor and restrooms, and sometimes power cabling and distribution trays. Carpet, blinds, and other improvements are sometimes negotiable as incentives, although rent-free periods are more commonly used as incentives. The tenant usually performs the fit-out, with tenant s contractors and construction workers, supervised by the landlord s architects and engineers. The landlord may charge fees for supervision, and must approve all construction. Fit-out costs for Class A or Prime buildings in major cities normally range from EUR 350 750 per sqm including construction, furniture, wiring, design fees, etc. Restoration The lease normally includes a dilapidation clause, which requires restoration of the premises to their original condition, allowing for normal wear and tear. The landlord normally grants a minimum time for the tenant to remove an installation. Sometimes the landlord chooses to keep the installation. Spain Page 203 of 309

Security Deposits and Guarantees Deposit The law, applicable throughout Spain, requires that the tenant pay a deposit, equivalent to two months of the first year s rent, into an account held by the state-run Chamber of Property (Instituto de la Vivienda de Madrid, known as IVIMA). For existing space, the tenant pays at contract signing. For space under construction and not immediately available, parties sign a pre-contract, and the tenant is usually asked for a deposit in excess of the two months rent stipulated by law. During the lease term, a deposit can be reviewed and adjusted according to CPI changes. Deposits are normally adjusted for a renewal; i.e., after third or fifth year, although by law a deposit is reviewed after a five-year lease term. The landlord returns the deposit without interest at lease end if the premise is accordingly reinstated. Bank Guarantee Landlords always require a bank guarantee in addition to a deposit. The bank guarantee can be equivalent to 6 12 months rent during the lease term. Car Parking Parking costs are normally covered in a lease contract and paid separately from rent. The average provision for parking is about one car space per 100 sqm of office space in the city center, and one car space per 50 sqm of office space in out-of-town locations. Fees for parking spaces range from EUR 90 200 per space per month. Other Occupancy Costs Repairs and Insurance Cost: The landlord pays for structural and external repairs. For multi-tenanted buildings, the landlord recovers repair and insurance costs from the tenant as a part of the service charges if stipulated in the lease. If not specified, or if a building has only one tenant, the landlord can recover a maximum of 12.5% of the cost annually, up to a maximum of 20% of the rent. Additional civil responsibility insurance may be required depending on the nature of the tenant s activity. TRANSACTION COSTS Agency Fees New Lease: Whoever hires the agent generally pays the agent. The landlord typically pays its agent 12 15% of the first year s rent. The tenant typically pays its agent a standard fee of 12 15% of the first year s rent, although the tenant and agent sometimes agree to a different fee structure based on savings. Lease Renewal: The tenant pays 8 10% or pays according to an agreed fee formula based on savings (which usually equates to 15% of savings achieved). Sublease: The tenant (i.e., the sublandlord) normally hires an agent and pays the same fees that a landlord would pay when a standard lease is signed. Alternatively, parties can agree on a fee based on savings. Sale or Sale and Leaseback: The party hiring the agent generally pays 3% on deals up to EUR 15 million and 1.5 2% on deals over EUR 15 million. Spain Page 204 of 309

Other Transaction Costs Additional Fees if Lease is a Public Title Deed When parties sign a lease as a private contract, no taxes other than 18% VAT are charged. Lease contracts can become a public title deed if signed in front of a public notary and written in the public real estate register. However, this is very rarely done due to the additional cost involved, even though it reinforces the status of the lease, and protects the tenant against eviction by a third party. Public title means additional costs in 2011: Notary and registry fees, around 0.5 1.0% each, and Stamp Duty Tax which, in 2011, was 0.5 1.5%, depending upon total amount of business. Because Spanish lease laws protect tenants in their peaceful use of premises, public titles are unpopular due to added costs. However, tenants with leases of 15 years or longer are more likely to formalize a lease before a public notary, for protection, particularly with changing ownership. Licenses Building licenses and licenses to commence economic activity account for 4 5% of the cost of fit-out. OTHER LEASE PROVISIONS Laws and Practices Law 29/1994, Ley de Arrendamientos Urbanos, covers office leases. Terms and conditions of leases must not conflict with this law or with the Civil Code. Standard Lease Standard lease agreements with typical clauses exist. Terms and conditions of leases must not conflict with Law 29/1994 (the Ley de Arrendamiento Urbanos) or with the Civil Code. However, the starting point will normally be a contract supplied by the landlord, which will be modified according to the wishes of the relevant parties. Right to Sublet Subleasing and assignment to a third party are rare, due to short lease terms. Option to Expand & Right of First Refusal Negotiable. Options to expand or reserve space normally have a cost. Depending on the negotiating power of the tenant, right of first refusal options can be included in the lease, at no additional cost. Late Delivery by Landlord The terms of release and penalty payments can be included in the lease document or negotiated when and if the landlord fails to deliver on time. The Civil Code contains guidelines for late delivery. Court decisions support such claims. The tenant is sometimes released from the lease contract and paid double the amount that is paid in advance. A tenant can sometimes get damages. Holdover by Tenant Penalties can be in the lease, or determined after holdover, and may be decided in court. The Civil Code considers a tenant to have held over if the tenant fails to vacate within 15 days following lease expiration. The tenant incurs payment of rents lost and possibly damages to the landlord for loss of a tenant. It is standard for a clause in the lease contract to state that the tenant must pay 2 3 times the daily rent for each day the tenant holds over. Signage and Naming of Building External signs on façades may be prohibited by landlords or by municipality rules. Large cities like Madrid have stricter rules in the city center than outside. Signs are normally only allowed at ground floor level. Small signs on doors are allowed. Names on rooftops require permits, and the landlord is likely to charge a fee. Spain Page 205 of 309

OFFICE LEASING MARKET Market Practices After the last economic downturn, landlords became more creative in order to attract new tenants: Landlords increased the rent-free period. In 2009, one month s free rent for each year the tenant is bound by contract became common, and during 2010 this was still generally the standard. However, from early 2011 to date, the free rent can be much greater, especially in decentralized areas. Transparency is lacking in this area. Landlords now offer attractive stepped rents more frequently. CPI increases apply, if agreed, in addition to step rents. Open market rent reviews apply after the set period ends. Some landlords provide fit-out allowances. Fit-out allowances are not common, but are increasing. Transparency Leasing contracts are confidential, but brokers and consultants keep records of transactions. In Madrid and Barcelona, the major property consultants exchange details of completed transactions (tenant names, addresses, rentals, incentives), and make this information available to brokers and clients, respecting confidentiality where required. Building Classification No standard way exists to classify buildings by quality. However, buildings are classified by use. High-Tech Buildings: The term high-tech refers to office buildings where occupancy is limited to occupiers related to production, normally manufacturing. However, this restriction is vague. High-tech buildings do not differ physically from exclusive office buildings, but are located in semi-industrial areas (or areas formally industrial based). Mixed Buildings: Normally office use is limited to the ground and first floors. Office users share services with the residential areas, so some services are limited. Mixed buildings do not normally have 24-hour security, air conditioning in common areas, regular cleaning of facade, etc. Exclusive Office Buildings: These buildings are used exclusively for offices, but a change of use may be possible. Information contained herein, including projections, has been obtained from sources believed to be 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 confirm independently its accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of the CBRE Global Chief Economist. Spain Page 206 of 309

Sweden What s Typical? Term Breaks Renewals Rent basis Free rent Escalation Security Fit-out Tenant broker Right to sublet Transparency 3 or 5 years typical Negotiable Automatic unless either party gives notice Net 0 6 months Annual index or negotiable 0 6 months Usually included in rent Tenant pays Subleasing of entire premises requires landlord approval, partial subleasing always allowed Fairly high for Stockholm CBRE Offices Stockholm +46 8 4101 8700 Gothenburg +46 8 4101 8700 For More Information About CBRE Sweden http://www.cbre.se/se_en About CBRE Sweden Research http://www.cbre.se/se_en/research For Local Market Reports http://gkc3.cbre.com/search/search.aspx Contact Pernilla Arnrud Melin Head of Research +46 8 4101 8708 Pernilla.Arnrud@cbre.com Sweden Page 207 of 309

LEASE LENGTH Term Three- or five- year lease terms are typical in Sweden. Three years is generally the minimum, although large occupiers often sign longer leases. Landlords normally require a 5-year lease or a longer lease if they do extensive tenant improvements. Termination or Break When the lease period is fixed, either the landlord or the tenant must give notice to terminate the lease. The notice period is negotiable but 9 months is standard. Renewal Renewal is automatic, normally for a new 3-year term, unless either the landlord or the tenant gives notice. SPACE MEASUREMENT Space Measurement Net useable area is generally the accepted standard, measured from the inside of exterior walls. OCCUPANCY COSTS Rent Rent Quoted: Rent is usually quoted in Sweden Kronor (SEK)/sqm/year. The currency of Sweden is the krona (which means crown; plural kronor, abbreviated kr or SEK). Rent basis: Net; i.e. excluding operating costs and service charges Rent Payable: The tenant pays rent monthly or quarterly in advance. Free Rent: In Stockholm, rent-free periods of 0 6 months are common, depending on location, lease length, etc. Rent Escalation: Although negotiable, rent is usually indexed annually to the national consumer price index (CPI), updated in October each year and published on www.scb.se. Operating Costs The tenant typically pays operating costs in addition to the rent. Operating costs usually include heating and cooling charges of approximately SEK 100 150/sqm/year for a Class A building. A service charge normally applies only if a service is provided, such as a common reception for the tenants. Taxes Property Taxes: The landlord collects the property taxes along with, and in addition to, the rent and forwards the taxes to the national government. The average property tax for Class A buildings in the CBD is in the range of SEK 350 450/sqm/year in Stockholm and SEK 200 300/sqm/year in Gothenburg. Value Added Tax (VAT): Leasing of property is exempt from VAT. However, a landlord may choose to register the premises (not the entire building) for VAT purposes if the tenant is liable for VAT. In this situation, the owner charges VAT on rent and may offset it against VAT paid by the owner on maintenance, repairs, etc. The standard rate for VAT is 25%. Utilities Utilities: The tenant pays the landlord for electricity, either based on an estimate, normally reviewed once a year, or pays the electric company directly. Water: Free for normal office consumption. Sweden Page 208 of 309

Fit-Out The landlord usually provides suspended ceilings, ceiling lighting and restrooms as a part of the lease agreement, and typically makes some tenant improvements, which are negotiable. In central Stockholm, the landlord usually performs interior construction, and amortizes its cost in the rent. Fit-out costs are high in Sweden, and in most Scandinavian countries, due to high construction costs and high standards. Fit-out costs for Class A or Prime buildings can range from SEK 5000 7000/sqm including construction, furniture, wiring, design fees, etc. Restoration The tenant must always return the property to its original condition minus any normal wear and tear unless the tenant s subsequent improvements are usable for future tenants, in which case the landlord is free to choose to allow the improvements to remain. If the tenant does not fulfill this, the landlord can claim damages. Security Deposits and Guarantees The deposit is typically six months rent or a bank guarantee. The amount depends on the tenant s financial strength. Large multi-national companies, major law firms, major consulting companies and state owned companies pay little or no deposit. Car Parking The tenant pays for car parking separately. In Stockholm, CBD parking costs about SEK 3,500/month + VAT. Other Occupancy Costs The landlord is responsible for structural repairs and building insurance. TRANSACTION COSTS Agency Fees New Lease: The landlord pays its agent 10 15% on the first year s rent. If a separate agent represents the tenant, the tenant pays its agent approximately 15% of the first year s rent but with a minimum fee. Lease Renewal: The agency fee that the tenant pays is normally based on savings. Sublease: The sublessor pays approximately 15% of the first year s rent, regardless of lease length, + VAT. If separate brokers represent the sublessor and subtenant, each party pays its broker 10 15%. OTHER LEASE PROVISIONS Standard Lease There are no standard leases but the Swedish Property Federation has upheld contract forms. Right to Sublet Subleasing the entire premises is subject to landlord approval, although the tenant always has a right to sublet part of the space. Option to Expand & Right of First Refusal Late Delivery by Landlord An option to expand or reduce in size is negotiable. A rent discount is the most common practice, as established by law. Generally, costs incurred by late delivery are reimbursable. Holdover by Tenant The law establishes penalties to cover the landlord s costs. Sweden Page 209 of 309

Signage and Naming of Building Signs on buildings require a building permit, which is normally not difficult to obtain. The naming of a building is unusual, and occurs only on landmark buildings. In Sweden, a landmark building is a well-known building; which is often large with spectacular architecture, such as the Turning Torso building in Malm, in southern Sweden. Other Lease Provisions Building security is seldom an issue in Sweden. The landlord usually provides code locks as a part of the lease agreement. OFFICE LEASING MARKET Transparency Comparables, which include names of tenants, space, and rents, are in most cases available for recent transactions, especially for Stockholm. Data on incentives, however, is not generally available. Building Classification Although no commonly accepted way to classify office buildings exists in Sweden, CB Richard Ellis has classified all office buildings in the Stockholm CBD as Grade A, Grade B or Grade C. CBRE s classification considers a building s age, quality of systems and finishes, efficiency, etc. Information contained herein, including projections, has been obtained from sources believed to be 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 confirm independently its accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of the CBRE Global Chief Economist. Sweden Page 210 of 309

Switzerland What s Typical? Term 5+5 years typical Breaks Negotiable Renewals Negotiable Rent basis Net Free rent 3 months or fit-out contribution Escalation Indexed annually or stepped Security 3 6 months Fit-out Tenant pays Tenant broker Tenant pays Right to sublet Allowed with reasonable consent Transparency Low CBRE Offices Geneva +41 22 322 8060 Zurich +41 44 226 3000 For More Information About CBRE Switzerland http://www.cbre.ch/ About CBRE Switzerland Research http://www.cbre.ch/ch_en/research For Local Market Reports http://gkc3.cbre.com/search/search.aspx Contact David Schoch Associate Director (Zurich) +41 44 226 30 09 david.schoch@cbre.com Nicole Weber Head of Global Corporate Services +41 22 322 80 67 nicole.weber@cbre.com Switzerland Page 211 of 309

LEASE LENGTH Term Tenants of all sizes normally lease for a fixed term of five years. For new developments, 10-year leases apply. Termination or Break Some leases include a break option after three years or five years for a 10 year lease. Renewal Five-year leases normally have an option to renew for five more years at a pre-negotiated rent. SPACE MEASUREMENT Space Measurement Space measurement practice follows the norms outlined in document SIA 416, published by the Swiss Society of Architects and Engineers. Parties are not legally required to follow these measurement norms, and so measurement practices vary appreciably. Definitions The area is usually in gross internal square meters, which includes space that can be occupied, areas of nonload-bearing inner walls, and restrooms. It excludes staircases, elevators and shafts. On multi-tenant floors, restrooms and other common areas are allocated proportionally to the tenants on the floor. Efficiency A typical ratio of carpetable area to gross internal area is 75%. OCCUPANCY COSTS Rent Rental Quoted: Rent is quoted net of service charges and property tax in Swiss francs (CHF) per square meter per year. Rent is payable monthly or quarterly in advance. Rent is subject to VAT (8% in 2012) if the property is subject to VAT. The landlord can recover the VAT on service charges. Free Rent: No typical amount is yet established; however one to three months are possible, depending on the location and the economic environment. The amount of free rent is negotiable. When major fit-out work is to be done, the landlord usually gives a rent holiday for that time. Rent Escalation: Rent is indexed to the consumer price index (approximately 1% per year on average), however only leases with a five-year duration or more may be 100% indexed. Other rent increase schemes, like stepped rents, are negotiable. Leases shorter than five years cannot be indexed by law. Costs Included in the Rent: (1) Building insurance. (2) Property taxes, although most Cantons do not levy property taxes. (3) Structural repairs. (4) Improvements: The landlord usually pays for improvements required by building authorities, such as sprinklers for large premises of open space. (5) Sometimes property management fees. Service Charges Typical service charges cover electricity in common areas, heating, water and sewage, waste disposal, environmental maintenance, caretakers and building security. The landlord bills these in addition to the rent to the tenant, mostly based on actual consumption. Most landlords recover property management expenses partly or fully from their tenants with service charges. The landlord returns any surplus to the tenant. The tenant pays the landlord any shortfall. The tenant has the right to audit the service charges annually. Switzerland Page 212 of 309

Taxes The landlord pays any property taxes, which are not subject to VAT. However, most Swiss Cantons do not levy property taxes. Zurich has no property tax. Geneva s property tax is 2%. Utilities Tenants usually pay for electricity directly to an electric company based on a meter. Tenants pay for water to the landlord via the service charges, based on the area occupied. The landlord usually has the right to install a separate meter for excessive water use. Fit-Out The landlord normally delivers space in an improved shell and core standard with cable channels, heating, blinds, restrooms and toilets. More modern buildings are also delivered with suspended ceilings, raised floors and basic cooling and ventilation (CAT A). The tenant normally pays for the remainder of fit-out. In 2011, some landlords contributed to the tenant fit-out to attract tenants. The tenant usually uses its own architects or space planners. For larger office premises or in development projects, the tenant sometimes uses the landlord s architect. The landlord must approve fit-out work. Local authorities may require approval for improvements and changes to the base build as windows, bearing walls, and ceilings. Fire department inspection and approval are required. Fit-out costs for Class A or Prime buildings in major cities normally range from CHF 1500 to 2500 per sqm including construction, wiring, design fees, etc. Restoration The landlord usually requires the tenant to restore the premises at the end of the lease, especially if the tenant provided the fit-out. Various solutions are negotiable and can be incorporated in the lease. Security Deposits and Guarantees Upon signing the agreement, the tenant normally provides three to six month s security, either as a cash deposit to a blocked (i.e., escrow) bank account or as a bank guarantee (i.e., letter of credit). The amount of the security deposit is negotiable and depends on the financial strength of the tenant. A major company that provides a corporate guarantee sometimes provides no security deposit or provides a bank guarantee. The landlord returns the security deposit at lease expiration. The landlord has the right to keep a part or all of the security deposit to cover damages or outstanding payments. Car Parking The tenant pays extra for parking, as allocated in the leasing contract. Typical monthly charges for covered parking lots are as follows: in central Zurich: CHF 300 550; in the suburbs: CHF 150 200; in central Geneva: CHF 550 750; in the suburbs: CHF 250 300. Other Occupancy Costs There are normally no other significant occupancy costs. TRANSACTION COSTS Agency Fees New Lease: Either the tenant or the landlord, whoever contracted the agent, pays 15% of the annual rent plus VAT (8% in 2012) of annual rent, regardless of lease length. If one agent represents the landlord and another represents the tenant, each receives 15% of the annual rental plus VAT. Lease Renewal: The tenant pays 7.5% 12.5% of the annual rent plus VAT (8% in 2012). Sublease: The sublandlord or subtenant pays 15% of the annual rent, regardless of lease length, plus VAT (8% in 2012). If one agent represents the sublandlord and another represents the subtenant, each agent receives 15% of the annual rental plus VAT. Switzerland Page 213 of 309

Other Transaction Costs There are no taxes for the closing of lease agreements. Stamp duty and registration fees apply only apply with sales transactions, not with lease agreements. The tenant sustains the cost of third party advisors like lawyers or due diligence experts. OTHER LEASE PROVISIONS Laws and Practices The Swiss Law of Obligations (Art. 253 ff. OR) governs office leases. Standard Lease Standard leases are not frequently used by major landlords; however, leases usually do not differ greatly. Standard leases are available from the Swiss Home Owners Organization (HEV), but only small landlords and small sublessors use them. Right to Sublet Subletting and assignment are legally authorized but require landlord consent. It is rare for a landlord to deny consent to sublet because Swiss law does not allow the landlord to deny consent unreasonably. Denial is allowed when there is risk of insolvency or change of use that would affect property. Option to Expand & Right of First Refusal Late Delivery by Landlord An option to expand is usually offered by the landlord with terms as set forth in the lease contract. Terms are negotiable and often included in the lease contract. Holdover by Tenant Tenant holdover after lease expiration is not a problem in Switzerland; and therefore is not covered in lease contracts. Signage and Naming of Building Buildings do not have tenant names in Switzerland. Local building regulations may limit front and roof signage. It is difficult to get approval for large or distracting signs on buildings that are listed in the local inventory of historic buildings or buildings in protected zones. Other Lease Provisions Costs for building security are negotiable and can be a part of the service charges. OFFICE LEASING MARKET Transparency Real estate agents rarely disclose terms of completed deals. A few cities such as Zurich, Geneva, Berne, Basel, and Lausanne survey vacancy rates in office, retail, industrial and residential sectors. Building Classification There is no commonly accepted way to classify office buildings in Switzerland by grade. Switzerland Page 214 of 309

PURCHASE AND SALES Market Practices In Switzerland, office occupiers either own or lease buildings. Larger companies usually hold some of their premises in owned properties, whereas small-and medium-sized office occupiers typically lease their space. International occupiers usually lease before owning buildings or space in condominiums. However, several foreign companies own buildings, especially headquarters buildings. Agency Fees The fees depend on the transaction value and vary between 2-3% of the sale price. Other Transaction Costs Depending on Cantonal jurisdiction of the 26 Cantons, transaction taxes generally range from 0.7% 5% of the sales price. The transaction tax is 0% in the Canton of Zurich and 3.5% in Geneva. All sale transactions must be notarized. Notary fees range from 0.25% in Zurich to 0.5% of the sales price in Geneva, and up to 0.75% elsewhere. Information contained herein, including projections, has been obtained from sources believed to be 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 confirm independently its accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of the CBRE Global Chief Economist. Switzerland Page 215 of 309

Turkey What s Typical? Term 3 5 years typical Breaks After 1 year with 3 months notice Renewals Negotiable and typical Rent basis Net Free rent 1 3 months Escalation 3 5%/year or indexed to US CPI Security For any tenant: 3 months rent or 1 2 months rent for a short lease Tenant broker Tenant pays Fit-out Tenant pays Right to sublet Rare Transparency Terms of done deals available for Istanbul only CBRE Offices Istanbul +90 212 259 3629 For More Information About CBRE Turkey http://cbre.com.tr/en/home.aspx About CBRE Turkey Research http://cbre.com.tr/_media/portfolio/istanbu l_mib_q4_2011_0208201203303717.pdf For Local Market Reports http://gkc3.cbre.com/search/search.aspx Contact Sedef Aslan Head of Office Agency +90 212 259 3629 ext.19 sedef.aslan@cbre.com.tr Turkey Page 216 of 309

LEASE LENGTH Term Lease terms are negotiable but tend to be for three to five years. Termination or Break Typically, the lease contract grants a tenant the right to terminate the lease after one year s tenancy with three months prior written notice. Renewal Typically, the lease contract grants a tenant the right to renew unless the owner requires the premises for its own use. This right is negotiable, and not covered by law. SPACE MEASUREMENT Space Measurement Quoted areas are usually on a gross basis, which includes bathrooms, common areas, stairwells, and elevators. Space is measured to the outside wall. OCCUPANCY COSTS Rent Net Rental: The tenant pays net rental (i.e., excluding service charges and taxes) in U.S. dollars or in Euros. Rent Payable: Tenants often pay rent monthly or quarterly, but practices vary. The tenant rarely pays rent upfront annually. VAT is payable at 18% or withholding tax at 20% is payable on rent. Free Rent: Some owners agree to a rent-free period, usually 1 3 months. Rent Escalation: Rent either is subject to an annual percentage increase, usually 3 5%, or adjusts to a variable such as the U.S. Consumer Price Index (CPI), subject to negotiation as specified in the agreement. Service Charges The tenant pays the service charge, typically USD 60 144/sqm/year for a Class A Building. Service charges cover cleaning and electricity consumption in common areas, security, heating and cooling, and maintenance of technical equipment. Taxes If a corporation owns the property, the tenant pays VAT at 18% of the rent. If the property is owned privately, the tenant pays a withholding tax of 20% of the rent. Service charge is subject to 18% VAT. The landlord normally pays the property tax. Utilities The tenant generally pays for electricity and water, typically USD 25 32/sqm/year. Utility charges are mostly based on a meter, paid directly to the utility companies, and are rarely included in the service charge. Fit-Out New properties lease on a shell-and-core basis with the tenant being responsible for fit-out expenses and for internal repairs. Previously occupied space is typically leased as-is. Landlords do not provide tenant improvements. Fit-out costs for Class A or Prime buildings in major cities normally range from USD 500 650/sqm including construction, furniture, wiring, design fees, etc. Restoration Tenants are not required to restore the premises at the end of the term but must take with them all their movables. Sometimes tenants are allowed to take some of the partitions too. Tenants obligations and rights can be specified in the lease. Turkey Page 217 of 309

Security Deposits and Guarantees For any tenant, landlords usually require a deposit equivalent to 3 months rent, or 1 2 months rent for a short lease. The deposit can be cash or letter of credit from a bank. Car Parking In Istanbul, tenants usually get one car parking space free of charge for every 100 sqm of Class A space leased. Most of the new developments offer one car parking space free of charge for every 50 sqm. Other Occupancy Costs Landlord pays for building Insurance and external Repairs, and normally does not recover these costs from the tenant. TRANSACTION COSTS Agency Fees New Lease: The tenant pays a total fee of 12.5% of the first year s rent, regardless of lease length. This fee is not negotiable. Landlords do not pay fees, except when the office building is Grade A+ and the landlord is a company. Most landlords are individuals, not companies. VAT (18%) is additional. Lease Renewal: Negotiable, usually the tenant pays 10% of the first year s rent. If an agent represents the landlord, which is unusual, each party pays its agent. Rent Review: The tenant typically pays 10% of the first year s rent, subject to negotiation. Sublease: The sublessor or subtenant generally pays 10 12.5% of the first year s rent, regardless of lease length, subject to negotiation, plus 18% VAT. Subletting is rare in Turkey. Other Transaction Costs Registration of a lease is optional. Some tenants want registration because registration protects the tenant from eviction if a property is sold. Lease contracts are registered at the Title Deed Office. The stamp duty is 0.165% (typically in either USD or EUR) of the total rent payable in the lease over the term, as agreed in the contract. Either party may pay the stamp duty or they may share it, as agreed. OTHER LEASE PROVISIONS Laws and Practices Office occupiers mostly lease space, rather than own. Most landlords are individuals, not companies, and are personally liable in any lawsuits. Standard Lease Standard leases are not used. Lease agreements are drafted for each transaction. When provisions not written within the agreement are required, 6570 numbered Law regarding the Rents of Immovables, Code of Obligations, Civil Code, and 634 numbered Property Law and other relevant legislation are applied. The Court and Execution Offices of the relevant city in Turkey handle disputes arising from the application of the agreement. Right to Sublet Subletting is rare in Turkey, is negotiable and subject to the landlord s consent. Option to Expand & Right of First Refusal An option to expand in accordance with availability is negotiable and can be addressed in the lease document. A right of first refusal is usually granted if the building is not a condominium. Late Delivery by Landlord Contracts do not typically provide for penalties if a landlord delivers the space later than agreed. Holdover by Tenant There are penalty clauses in lease agreements that require the tenant to pay if the tenant does not vacate at the end of the lease term. These clauses are negotiable. Turkey Page 218 of 309

Signage and Naming of Building Naming of a building and signage on a building are possible if a tenant leases the whole building. OFFICE LEASING MARKET Transparency Comparables, which identify names of tenants, area, rental rates, etc., are generally available for recent transactions in Istanbul, but generally not elsewhere in Turkey. Building Classification Grade A buildings have good-quality air conditioning, fire fighting and sprinkler systems, generators, water supply, minimum two emergency staircases, good security, stringent seismic codes, elevators, garage car parking, etc. Information contained herein, including projections, has been obtained from sources believed to be 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 confirm independently its accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of the CBRE Global Chief Economist. Turkey Page 219 of 309

Ukraine What s Typical? Term 3 5 years Breaks Negotiable, but rare Renewals Yes Rent basis Triple net Free rent 1 2 months Escalation Fixed 3%/year. Indexation rare Security 1 3 months security deposit, or 3 months bank guarantee regardless of tenant credit Fit-out Tenant pays Tenant broker Tenant pays Right to sublet Negotiable Transparency General market data available, not terms of completed transactions CBRE Offices Kyiv +38 044 390 0000 For More Information About CBRE Ukraine http://www.cbre.ua/ua_en About CBRE Ukraine Research http://www.cbre.ua/ua_en/research For Local Market Reports http://gkc3.cbre.com/search/search.aspx Contact Radomyr Tsurkan Managing Partner +38 44 390 0000 radomyr.tsurkan@cbre.ua Ukraine Page 220 of 309

LEASE LENGTH Term The lease term in professional office buildings (i.e., office buildings built to modern standard and specifications, typically by professional developers) varies from 3 5 years, depending on the size of the occupier and quality of the building. Leases over 5 years are rare. Lease terms in non-professional office stock are mostly short-term. Non-professional office stock includes converted apartments, industrial loft open space without an office lobby, old Soviet-era administrative buildings, etc. Non-professional office stock is usually owned and operated by occasional owners, rather than office developers, and generally lacks proper facility management. Information that follows in this chapter refers to professional office stock only. Termination or Break Tenants have a statutory right to terminate only for force-majeure or company termination. Company termination can include bankruptcy, administration (i.e., termination by court decision, etc.), merger, or closing for other reasons. Rarely, a break after the third year is negotiable for longer leases. Rolling breaks are very rare and require notice of 6 months or more and are subject to penalties. The penalty is typically 1 3 months with local landlords, and from 6 month to the entire remaining rent with international developers. Renewal A pre-emptive statutory right to renew the lease is provided by Civil Code, unless otherwise agreed between the parties in the lease. SPACE MEASUREMENT Space Measurement Parties are free to use either BOMA Method or BTI (Bureau of Technical Inventory) standards. Most professional landlords use the BOMA measurement methods. Where BOMA methods are used, a common area factor between 5 15% is widely accepted. Higher grade offices typically feature a higher common area factor. Municipal governments and a few landlords use BTI. This includes all areas of a building where a foot can be set, including staircases. BTI excludes other common areas such as lobbies and lift halls. Common corridors are included only with single-occupier properties. Efficiency A typical ratio of carpetable area to rentable area in a Class A building in Kyiv is 85 90%. Ukraine Page 221 of 309

OCCUPANCY COSTS Rent Rent Quoted: typically in USD per sqm per month, rarely in EUR. For inferior quality premises and short term leases, rent denomination in Ukrainian Hryvnia (UAH) is negotiable but rare. Triple Net: Rents are typically quoted triple net, with 20% VAT added to all costs. Rent Payable: The tenant pays rent monthly or quarterly in advance, in UAH at the prevailing exchange rate at the time of the payment. Free Rent: Rent-free periods in 2011 2012 ranged from 1 6 months, depending on area leased, lease length and landlord s contribution to tenant s fit-out. Rent Escalation: It is becoming common to escalate USD-denominated rental payments by 3% per annum. Index-linked escalation is rare. Costs Included in Rent: The landlord covers the cost of capital improvements and structural repairs. Service Charges The service charge for a Class A building in Kyiv varies between USD 6 8.00/sqm/month, which covers: Typical Operating and Maintenance Expenses: The tenant typically pays on a pro-rata basis, but rarely on an open-book basis. Ground Rent Payable: Tenant compensates pro rata for the cost of land rental payments. Building Security: Normal building security is included in the service charge. Insurance Premiums: For landlord s third-party liability and physical building risks insurance. Taxes 20% VAT is payable on all occupancy charges (rent and service charges) including utilities, telecom charges and car parking. VAT exemptions are extremely rare and are limited to: the few diplomatic missions with organized VAT exemptions leases with landlords who private entrepreneurs, which are rare in the professional market. Utilities Electricity and Water: The tenant pays for metered electricity and water consumption separately from the service charge. Telecommunication Charges: The tenant usually arranges with, and pays, telecom suppliers directly. Fit-Out Most recent developments are delivered in shell & core condition. For shell & core fit out, the tenant pays for improvements that may reach USD 1,000 per sqm. In fewer than 50% of the cases the landlord provides perimeter wall finish, suspended ceilings, lighting, carpeting and engineering for open-space layout. The tenant pays for additional needed fit-out costs, which for Class A or Prime buildings in major cities normally range from USD 300 500 per sqm including partitions, wiring, design fees, etc. Furniture costs generally vary from USD 150 300 sqm, additionally. Restoration Tenants rarely have to restore the premises. The landlord usually accepts it with normal wear and tear. Security Deposits and Guarantees Three months rent in cash or a bank guarantee is typical; however, for leases shorter than three years, landlords typically accept 1 2 months security deposit. These amounts normally apply for tenants of all kinds including strong credit tenants and start-up companies. Ukraine Page 222 of 309

Car Parking The tenant pays for secured parking in addition to the rent: typically USD 100 250 per month per place, depending on the location and whether it is a garage or surface parking space. Parking spaces are allocated according to a parking ratio. Buildings usually offer one space per 100 200 sqm in the CBD, one per 100 150 sqm in secondary central locations and one per 50 100 sqm in non-central areas. Parking is extremely scarce in densely built Kyiv, and typical parking ratios are noticeably worse in Kyiv than in Europe s other major markets. Most tenants park randomly along the street and on sidewalks. Many employees use public transportation, and office properties near the metro (subway) stations attract many tenants. Other Occupancy Costs No other significant occupancy costs apply. TRANSACTION COSTS Agency Fees New Lease: Either the landlord or tenant pays 6 12% of the annual rent. The most typical fee is 8.33 10% of annual rent. When the landlord and tenant are represented by different brokers, each broker receives the amount shown above from the represented side. Lease Renewal: 6 12% of the annual rent. Legal Fees The tenant pays legal fees if the tenant retains a lawyer for advice on the agreement. However, tenants often use in-house lawyers to check the leases, and rarely outsource lawyers for lease reviews. Outside lawyers are normally used only by large occupiers. Other Transaction Costs Leases over three years must be registered and stamped by a notary. The tenant pays the cost, which is usually below 1% of the total lease value. OTHER LEASE PROVISIONS Laws and Practices The Civil Code of Ukraine applies to all transactions involving privately-owned property. Transactions for use and lease of municipal properties (state-owned property) are governed by the Civil Code and by a special law, On Lease of State and Municipal Property. Standard Lease Each building has its own typical lease that all tenants must sign, which is negotiable within certain limits. Provisions may vary from building to building (or landlord to landlord). Right to Sublet Negotiable and normally possible. No statutes apply. Option to Expand & Right of First Refusal Late Delivery by Landlord An option to expand is common and negotiable, especially for major occupiers in the building. Late delivery is usually covered in pre-lease deals, where property is under construction or not yet commissioned. Late delivery penalties are negotiable. One day of free rent against one day of delay is typical. Holdover by Tenant Most leases do not address holdover, although rights and penalties for holdover can be negotiated and addressed in the lease. Ukraine Page 223 of 309

Signage and Naming of Building Signage and naming of a building are usually available. Signage is subject to the landlord s approval. Outdoor or façade signage is also subject to the city s approval. The tenant is responsible for obtaining all necessary approvals and costs OFFICE LEASING MARKET Market Practices The Kyiv market has substantially matured in the past few years with respect to tenant and landlord relationships. Institutional-quality leases are becoming widespread. An institutional-quality lease gives landlords the full guarantee of rental income and requires the tenant to meet its rental obligations until the expiration of the lease term. These leases, coupled with good construction, create institutional investment grade buildings. Transparency Almost all leases are confidential. However, data on office completions, take-up and vacancy rates are shared on a quarterly basis by some international brokerage firms without making such exchanges formal. Ukraine Page 224 of 309

Building Classification In 2004 2005, the Real Estate Committee of the American Chamber of Commerce adopted a Standard Office Classification for Grade A, Grade B, and Grade C office buildings in Kyiv. The Standard Office Classification defines Class A, B and C buildings, as follows: Building Classes Class A Office Buildings: Must obtain all of the first ten (imperative) specifications and meet or exceed six out of the additional (non-imperative) specifications. Class B Office Buildings: Must obtain 13 of the specifications of which a minimum of seven shall be of the first ten (imperative) specifications. Class C Office Buildings: Must obtain seven of the specifications of which a minimum of five shall be of the first ten (imperative) specifications. Ten Imperative Specifications 1. Located within CBD (central business district as indicated by red line in the map below) or in a high profile location close to a transport hub in its submarket. 2. Professional property management with a transparent and open book service charge expense, apportionment and recovery system. 3. Dedicated and identifiable office entrance and lobby. 4. Clear net ceiling height not less than 2.7m across a minimum of 90% of the net useable area. 5. Dedicated secure parking (excluding on-street parking) within or adjacent to building not less than one car place per 100 sqm of rentable area. 6. Power supply of at least 50 watts per one sqm of lettable area after lighting and plant supplied either by Category I power supply or back-up diesel generator. 7. HVAC: At least 2-pipe (one circuit) HVAC system with individual tenant s temperature control and fresh air intake of not less than four changes per hour to office space. 8. Column spacing with a flexible layout. 9. Fiber optic-based digital telephone, ISDN, and Internet technology services available within the building. 10. Chargeable loss factor not higher than 12%. Additional Specifications, Non-Imperative 1. Frontage (visible frontal position on the address street). 2. Rational window spacing with not less than 95% of useable space within ten meters of natural light source (i.e., window or atrium). 3. Minimum floor size of 500 sqm. 4. Average floor depth not exceeding ten meters from perimeter wall to end of useable space. 5. Flexible communication services including either raised floors, under-floor trunking or perimeter trunking. 6. Average elevator waiting time at peak use times of not longer than 30 seconds (after call) 7. Reasonable walking distance to nearest metro station or trolleybus stop. 8. Staff cafeteria (canteen) inside, or within a short walking distance of an affordable café or restaurant. 9. 450 kg per sqm floor load-bearing capacity. 10. 400+ lux illumination of office areas at working height. New Classification System Proposed Since 2005, Kyiv office market has grown and matured, with quantity and quality upgrades. The classification of 2005 is now obsolete. In September 2011, CBRE office initiated public discussion to re-consider Kyiv CBD boundaries and Office Classification. CBRE proposed that buildings be classified separately by quality and by location. Location classifications would be: A within CBD; B CBD fringe; and C non-central location. Currently public discussion is still in progress within the platform of American Chamber of Commerce. Ukraine Page 225 of 309

PURCHASE AND SALES Market Practices Few occupiers buy and own premises. Ownership is more common among local and Russian companies, banks and large holdings with substantial equity. The Ukrainian anti-monopoly legislation established strict anti-monopoly clearance procedures for asset or share deals, which provide some exceptions. The anti-monopoly clearance is typically required for all asset or share deals involving asset values of more than EUR 1,000,000 and seller s or buyer s global turnover of more than EUR 12,000,000 for the full previous calendar year. Clearance typically takes 6 8 weeks after filing, with filing preparation also taking 2 4 weeks. Solicitors fees for the process average around EUR 5,000 12,000 per filing. Agency Fees A typical fee is 8.33% of the annual rent, or 1-5% of the sale price, depending on the value of the transaction. Other Transaction Costs Acquisition Costs for Asset Trades: For asset trades (i.e., purchase and sales of real estate, of company shares, of corporate rights, etc.), a 1% notary fee and 1% pension fund fee are payable. All other fees are nominal. VAT: Generally, VAT at 20% applies for real estate sale and leases. This VAT should be recoverable by law by a VAT-registered payer, but in practice is typically offset against rental income. Capital Gains Taxes: 5% Ukrainian income tax for a private resident and 23% Ukrainian income tax for a company also becomes payable for a Ukrainian seller at asset disposal. Withholding Taxes: If the seller of a Ukrainian real estate asset is foreign, 10 or 15% Ukrainian withholding tax would apply to income received by such a seller in the absence of a permanent establishment of such a seller in Ukraine. Otherwise, the foreign seller conducting business in Ukraine through its permanent establishment would be liable to 23% tax in Ukraine. Information contained herein, including projections, has been obtained from sources believed to be 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 confirm independently its accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of the CBRE Global Chief Economist. Ukraine Page 226 of 309

United Arab Emirates What s Typical? Term Breaks Renewals Rent basis Free rent Escalation Security Fit-out Tenant broker Right to sublet Transparency 1 5 years, trend is towards longer lease terms Common for long leases Automatic if tenant holds over and landlord does not object Net 1 6 months Local laws limit increases 1 3 months Sometimes included in rent Tenant pays Negotiable Limited CBRE Offices Abu Dhabi +971 2 619 7800 Dubai +971 4 437 7200 For More Information About CBRE United Arab Emirates http://www.cbre.ae/uae_en About CBRE United Arab Emirates Research http://www.cbre.ae/uae_en/research For Local Market Reports http://gkc3.cbre.com/search/search.aspx Contact Matthew Green Associate Director-Head of Research +971 4 437 7200 matthew.green@cbre.com United Arab Emirates Page 227 of 309

LEASE LENGTH Term Typical lease terms are short, between one and five years. Traditionally, most leases were for one year, but with the recent consolidation of the office market, landlords increasingly understand the benefits of locking tenants into longer leases to secure steady income streams. In some instances, tenants are now seeking to commit to leases of between five to seven years, frequently with a tenant-only right to break at the end of the fifth year. Occasionally, tenants are now even committing to 10-year leases. Termination or Break Tenant-only rights to break are becoming more common in the market, particularly in longer leases; for example, at the end of the third year of a five-year lease, or at the end of the fifth year of a seven-year lease. Landlords are offering rent-free periods spread out across the term of the lease, so that tenants are encouraged to take longer lease terms and if they wish to terminate before lease-end, they do not benefit from these incentives. Renewal Under Federal law, if a tenant continues to occupy the premises after the lease expiration without any objection from the landlord, then the lease shall be deemed renewed for a similar period on the same terms and conditions. Under Dubai law, if either the landlord or the tenant wishes to amend the terms of a lease on renewal, it must notify the other party not less than 90 days prior to lease expiration. SPACE MEASUREMENT Space Measurement Floor areas are usually quoted in square feet, but in Abu Dhabi, area is quoted in square meters. No single standard of area calculation is used in the UAE. However, the RICS Code of Measuring Practice is increasingly recognized, and floor areas now tend to be stated as a net internal or gross internal area. Definitions Net Internal Area: Net internal area is the normal measurement used to describe the area that a tenant occupies within an office building. Increasingly, the measurement is performed under the guidelines of the RICS Code of Measuring Practices, although some landlords include the internal columns within a tenant s proposed demise. Gross Internal Area: Typically, when quoting the area of a whole floor, the space measurement is the gross internal area according to the RICS Code. However, where a tenant chooses to occupy a floor or series of floors in a building, the landlord will often try to include pantries and toilet facilities, and quote a gross internal measurement. United Arab Emirates Page 228 of 309

OCCUPANCY COSTS Rent Rent Rent Quoted: Rental rates in the UAE tend to be quoted in terms of AED/sq ft/year, except for Abu Dhabi where rents are quoted as AED/sqm/year. AED is the currency abbreviation for United Arab Emirates dirham. The dirham is subdivided into 100 fils. Gross or Net: Depending on the landlord, rental rates are either quoted gross (i.e., including service charge) or net (i.e., with a separate, transparent or not transparent, service charge cost). The present market does not generally use reconcilable service charges, so that the true cost of running the building is difficult to assess, causing landlords to gravitate towards gross rental rates. Rent Payable: Typically, the tenant pays rent bi-annually or quarterly in advance, in the form of two or four post-dated checks given at the start of the year. Free Rent: Depending on the size of tenure and individual landlord, 1 6 months rent-free can be negotiated. In some instances involving large amounts of space in developing locations, up to 12 months rent free can be granted for longer lease term. Rent Escalation Abu Dhabi: The amended law allows landlords in Abu Dhabi to increase rents once a year by not more than five percent. The timing of rent review depends on the date of the last rent review. Under the revised law, the landlord has no right to require the tenant to vacate the leased property except after four years. Specifically, the four-year period is identified as: Leases entered into before November 9, 2006 (being the date the Law in its initial form came into force); calculated from the most recent anniversary of the start date of the lease; and leases entered into on or after November 9, 2006, calculated from the date of the lease. Dubai Permitted Rental Increases for Residential and Commercial Properties in 2011: If 2010 rent is 0 25% below the rent index level: the permitted increase is 0%. If 2010 rent is 26 35% below the rent index level: the permitted increase is 5%. If 2010 rent is 36 45% below the rent index level: the permitted increase is 10%. If 2010 rent is 46 55% below the rent index level: the permitted increase is 15%. If 2010 rent is over 56% below the rent index level: the permitted increase is 20%. Sharjah: Rents cannot increase for the first three years of a tenancy contract (Rules are currently under review by a special committee). Ajman: Maximum 20% increase after three years of the tenancy contract. Ras Al Khaimah: 5% for tenancy contracts signed after January 2008, 10% rent cap for contracts signed between January 2004 and January 2008, 15% rent cap for contracts signed before January 2004. Umm Al Quwain: Maximum increase of 10%, but landlord and tenant are permitted to reach an alternative agreement. Service Charges The tenant pays service charges on a multi-let property for the maintenance, operations and management of the building, and to cover items such as, building management, security, cleaning and general upkeep and repair of premises. Service charges may or may not provide for a sinking fund to replace large capital items such as lifts (elevators). Insurance can be included in the service charge or charged separately. Service charges range from 15 40 AED/sq. ft./year. Taxes Municipality Tax: Although the UAE enjoys a relatively tax-free environment, a Dubai tenant pays a Municipality Tax of 5% on annual rental. Value Added Tax (VAT): VAT is not applicable in 2011. United Arab Emirates Page 229 of 309

Utilities In most instances, service charges do not cover water, electricity or sewerage, for which the tenant pays separately and directly to the provider either by meter or as a unit rate directly to the landlord. Sometimes, there is also a separate charge for chilled water. Electricity is based on metered consumption. Depending on the consumption, it ranges between 23 38 fils/kwh. A fils is 1/100 of a dirham (AED). Water charge is based on metered consumption. Depending on the consumption, it ranges between 3.5 4.6 fils/gallon. Sewerage charges are applied based on water consumption. Fit-Out Landlord Work: No set standard exists in UAE. Typically, restrooms, prayer rooms, and pantries are considered part of the shell. Ceiling, integral lighting, and raised access floor are at the discretion of the landlord. Many developments are finished to a shell and core standard only, although some landlords now provide a raised floor, and in isolated instances there are landlords offering premises in Cat A condition. Cat A condition means in handover or finished condition. Tenant Work: Tenants usually are responsible for fit-out and are permitted to use their own architects, engineers, and contractors, subject to landlord approval. The landlord s mechanical and electrical engineers typically review plans and specifications. Typical fit-out costs for Class A or Prime buildings in major cities from shell and core, including construction, furniture, wiring, design fees, etc., are: Open plan: AED 1,800 3,600 per sqm. Mixed: AED 2,700 4,500 per sqm. Cellular: 4,500 6,400 per sqm. (with a high ratio of closed offices) Restoration The lease describes a tenant s obligations. Usually the tenant must restore the premises to its original state, but this is negotiable. Landlords can waive this obligation and accept the premises as-is. Generally, a tenant will have improved the premises, but any redecoration or damage must be made good, usually with a cash payment or a deduction from the security deposit. Occasionally, parties agree in the lease that certain improvements can remain. Security Deposits and Guarantees Landlords require a security deposit (1 3 months rent) from a tenant to pay for any damages at the end of the term and this is paid at the time of lease signing. The deposit is normally stored in an interest-bearing account under the names of the tenant but in the control of the landlord and held until lease expiration. Car Parking Charges for car parking spaces depend on the lease. Some leases include car parking spaces while others require a separate rent for any available spaces. Abu Dhabi and Dubai Municipality regulations state that any building presently under construction must provide for one parking space per 500 sq. ft. of net internal area, a trend also being followed in other Emirates. TRANSACTION COSTS Agency Fees Tenants typically pay agency fees, which range from 5 10% of the first year s rent excluding incentives. For lease renewals; the fee is 5% of the annual rent and/or 15 20% of the cost savings achieved on lease renewal. Legal Fees The tenant and landlord pay their respective solicitors a fee separately, depending on the amount of work. No fixed structure exists for calculation of legal fees. Other Transaction Costs Key Money: If a tenant takes over an existing lease as an assignment or sublease, it sometimes pays a premium reflecting the value of the lease or pays key money to the landlord to secure a tenancy, although this practice is becoming less evident. No other significant costs typically apply. United Arab Emirates Page 230 of 309

OTHER LEASE PROVISIONS Negotiating Memorandum of Understanding or Heads of Terms: The party that drafts the lease, typically the landlord, prepares a non-binding document called a Memorandum of Understanding or Heads of Terms, which is comparable to a Letter of Intent or Term Sheet in the U.S. It outlines the basic terms of the lease. Tenant and landlord can negotiate terms in the Memorandum of Understanding after which it is translated into the lease. Individual landlords generally use their own lease form and in some instances will not negotiate or consider amendments from the tenant. For new buildings, the landlord and tenant normally execute two binding documents: an Agreement for Lease and the Lease. The Agreement for Lease remains in place until the tenant occupies the space. Upon possession, the Lease supersedes the Agreement (i.e., landlord delivers finished building). In some instances, both documents are concluded simultaneously. For space in existing buildings, there is no Agreement of Lease. Arbitration: If the landlord and tenant cannot agree on an open market rental value, they can put forward the dispute to a Special Judicial Committee for Settlement of Disputes between Landlords and Tenants, which is tasked with introducing appropriate measures to implement provisions of the Decree. However, market practice is for parties to come to an amicable decision rather than submit a dispute to the Committee, as the regulatory framework is relatively undeveloped and contains significant ambiguity. Law No. 20 of 2006 Amended: Recently, the Abu Dhabi Government significantly amended Law No. 20 of 2006, which governs the relations between the landlord and tenant. The amendment is named Law No. 6 of 2009. These changes are intended to give the tenant more security. If a dispute occurs normally the landlord and tenant are represented by lawyers at a Committee hearing. Committee decisions are final and cannot be appealed. In short, the amendment stipulates: Tenants have now secured tenure of occupation for four years (instead of three), and the conditions attached to the rental dispute committee s ability to terminate a lease before the lapse of the secure term were changed. They are now that the tenant (1) is given prior notice of the requirement to vacate the premises (of a maximum of six months), (2) has occupied the premises for at least two years (previously it was one year); and (3) remaining in occupation would cause grave loss to the landlord. Right to Sublet The right to sublet is negotiable and subject to landlord consent. Typically, if the landlord agrees to a sublet, it is on the same terms and conditions as the tenant s lease terms and conditions. Option to Expand & Right of First Refusal Late Delivery by Landlord A right of first refusal can occasionally be negotiated. Typically, no penalties apply for late delivery of new buildings. Some landlords pay penalties in case of pre-lets. Holdover by Tenant No normal practice exists. Signage and Naming of Building Signage and naming rights can occasionally be negotiated by larger occupiers at additional cost. United Arab Emirates Page 231 of 309

OFFICE LEASING MARKET Market Practices Freezones are locations where specific companies may operate in a sheltered business environment to increase investment in given markets. Companies in Freezones generally operate within laws of the country (except for the Dubai International Financial Centre, which operates under its own laws) but are exempt from some financial and economic government regulations. The incentives offered range broadly depending on the specific Freezone, although typically include 100% ownership, 100% repatriation of capital, 0% income tax and subsidized rents or operating costs. The United Arab Emirates is currently home to over 25 Freezones operated under different business sectors. Due to tax and investment benefits, occupiers often prefer to operate from these Freezones rather than on-shore. Transparency The commercial office market in the UAE is still very immature by global standards, and so clear-cut standard market practices are not yet fully developed. Market information such as lease lengths, areas, and rents for recent transactions are generally unavailable to the public. However, agents normally have access to details of specific transactions for rent review and research purposes. Building Classification As in the U.S. and U.K., buildings are ranked using Grade A, B, and C. CBRE UAE s expectation at each level are: Grade A Fully accessible raised foors (min 150 mm) Suspended ceiling (with integrated light fittings) Electricity to suit LG3 lighting (integrated into ceiling) Proactive building management Flexible floor plate High speed and well maintained lifts and goods lift Grade B Fully accessible raised floors (min 150 mm) Perimeter/under-floor trunking Suspended ceiling (with integrated light fittings) Electricity to suit LG3 lighting (integrated into ceiling) A/C cassette system Proactive building management Flexible floor plate Grade C Perimeter/under-floor trunking Suspended ceiling (with integrated light fittings) Solid ceiling Electricity to suit fluorescent tube lighting A/C cassette system Information contained herein, including projections, has been obtained from sources believed to be 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 confirm independently its accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of the CBRE Global Chief Economist. United Arab Emirates Page 232 of 309

United Kingdom What s Typical? Term Breaks Renewals Rent basis Free rent Escalation Security Fit-out Tenant s broker Right to sublet Transparency Long; 10 15 years common Options to break common Negotiable. Law gives tenant right to renew, but this right can be waived Net. Most leases fully repairing and insuring Wide range. Between 6 and 33 months on a 10-year lease. Negotiable. Typically every 5 years. Sometimes to market, usually upward only. Negotiable Tenant pays Tenant pays Allowed with restrictions High CBRE Offices Aberdeen +44 1224 219 000 Belfast +44 28 9043 8555 Birmingham +44 121 609 7666 Bristol +44 117 943 5757 Edinburgh +44 131 469 7666 Glasgow +44 141 204 7666 Jersey +44 1534 874 141 Leeds +44 113 233 7666 Liverpool +44 151 224 7666 London (city) +44 207 182 2000 London (west end) +44 207 182 2000 Manchester +44 161 455 7666 Southampton +44 23 8033 8811 For More Information About CBRE United Kingdom http://www.cbre.co.uk/uk_en About CBRE United Kingdom Research http://www.cbre.co.uk/uk_en/researchne w For Local Market Reports http://gkc3.cbre.com/search/search.aspx Contact Kevin McCauley Senior Director - Research and Consulting + 44 207 182 3620 kevin.mccauley@cbre.com United Kingdom Page 233 of 309

LEASE LENGTH Term Leases in the United Kingdom are typically for longer terms than in continental Europe. Large occupiers commonly commit to leases for more than ten years. It is standard for a tenant occupying more than 5000 sq ft in a multi-tenanted building to sign a 10-year lease with a break clause after five years. Leases in pre-let deals tend to extend to 15 years or more. Shorter leases are available either for a rent premium or through the serviced offices sector where more flexible office solutions are offered. Termination or Break Options are negotiable for tenants to break at specified points in the tenancy, usually after three or five years or both. Renewal Tenants can normally renew a lease on similar terms upon expiration by negotiation. The renewal rent can be linked to inflation with a cap or set at the open market rate based on comparable evidence from other properties. SPACE MEASUREMENT Space Measurement Office measurements are normally based on the net internal area. Definitions Net Internal Area: Usable area within a building measured to the internal face of the perimeter walls at each level, excluding walls, restrooms, elevators, common areas and other areas that cannot be occupied by a desk. Gross Area: Gross measurements mainly apply to industrial and retail space, rarely to offices. OCCUPANCY COSTS Rent Rents Quoted: Rents are quoted in United Kingdom pounds (GBP) per square foot per year, typically on a net basis; i.e., excluding service charges, insurance, and property taxes. Rent for serviced offices normally includes these charges. Rent Payable: Rents are normally payable quarterly in advance. Rent-Free: Rent-free periods are negotiable and a common incentive, which depend on market conditions, the quality of the tenant taking the lease, and the length of the term. Rent-free periods can be substantial. In London on a ten year lease between 18 and 24 months rent-free is typical in 2011. Elsewhere in the U.K., the average rent-free period in 2011 is between 6 and 33 months on a ten-year lease depending on the market. Rent Escalation: Rents are normally reviewed and adjusted to open market level every five years, usually upward only. Between reviews, the amount payable is fixed. Some commercial landlords offer tenants more choices of lease terms and basis for rent review (e.g. inflation-linked). Value Added Tax (VAT): VAT is payable on rent if the building is elected for VAT. The current rate is 20%. Estate Charge: Where the property forms part of a large estate, such as Canary Wharf, a tenant may be liable for estate charges, which contribute toward the maintenance and operation of the estate s common parts. The estate charge does not form part of the service charge and is apportioned depending on the amount of space a tenant occupies on the estate. United Kingdom Page 234 of 309

Service Charges Tenants pay a service charge that usually covers: Common costs of running the building, if multi-tenanted. Proportional costs of structural and repairs to common areas. Property tax. Building insurance is usually, but not always included within the service charge. Management Expenses: Two to four percent of annual rent is recoverable from a tenant as part of the service charge in multi-let buildings. Full Repairing and Insuring Leases ( FRI ): Most leases in the UK are FRI leases. In which a new tenant may become liable for items of repair to the building or replacement of a redundant plant, so tenants should exercise due diligence as to the condition of the building. Taxes Business Rates: (i.e., property taxes) are payable by tenants. The rates liability is calculated based on the rental value at the time of the last rating revaluation multiplied by a standard ratable value multiplier that is agreed upon annually. Business rates vary considerably but usually amount to 25 40% of the rent. VAT is always payable on rent, service charges and fit-out costs. However, depending on the nature of a tenant s business it is sometimes possible to reclaim part or all of the VAT for the service charge. Utilities Electricity: The tenant pays for its actual consumption, based on metered usage directly to the utility company. The cost of electricity used to run the building is included in the service charge. Commonly, the cost of utilities such as water usage will be included as part of the service charge that a tenant will pay unless they have a significant water usage. Fit-Out Landlord Work: The landlord typically delivers space with ceilings, lighting, mechanical and electrical, raised floors and restrooms. Tenant Work: Tenant fit-out usually includes reconstruction of the ceiling, mechanical and electrical, lighting, cabling and partitioning. Tenant fit-out generally needs the landlord s consent and must be done with licensed professionals, especially when moving or upgrading the landlord s mechanical and electrical equipment. Fit-out Costs: The tenant pays fit-out costs, although the landlord typically contributes with a rent-free period or capital contribution toward carpets, floor boxes, etc. Tenant fit-out costs for Class A or Prime buildings in major cities normally range from GBP 50 150 per sq. ft. including construction, furniture, wiring, design fees, etc. Restoration Most leases contain covenants obligating the tenant to return the premises to the landlord on expiry in the same condition as it was delivered at the start of the term. This normally means removing fit-out partitioning, furniture and fixtures, and making good if appropriate. Security Deposits and Guarantees If a tenant is unable to provide three years worth of accounts in which operating profit is at least three times the annual rental liability, then the landlord may require a rental deposit of 6 12 months rent. Standard practice is for a deposit to be held in an escrow account, and returned with interest after a tenant has fulfilled all its obligations. Car Parking Car parking is usually included in the office rent, particularly outside Central London. In Central London, and in some major regional centres, tenants pay for car parking as additional rent, which can range from GBP 2500 4000 per annum per space. United Kingdom Page 235 of 309

TRANSACTION COSTS Agency Fees Each party normally appoints and pays its own representatives. Disposal fees that landlords typically pay their agents equal 7.5 10% of the gross annual agreed rent, exclusive of incentive. They depend on sole/joint agency and on building size and the number of agents involved. The fees quoted are typical of market rates and are often negotiable. Acquisition fees are negotiable and more variable, and typically range from GBP 1.00 3.50 per sq. ft., depending upon the market where the transaction is occurring. It is becoming more common to also see incentive fees based on percentage of incentive negotiated or improvement on original terms etc. This can generally be between 5 10% in the regions, usually with a base fee as well. The level depends upon the scale of the instruction. Lease renewal fees: (1) Fees on behalf of Landlord are generally a fixed fee and percentage of net income achieved until next lease event. They vary significantly depending on the scale of the instruction and rent level. (2) Fees on behalf of Lessee tend to be fixed fee plus percentage of savings achieved, and vary based on the scale of the instruction. Lease surrender fees tend to be a fixed fee and percentage of savings achieved against total liability, and depend on the scale of the instruction. Legal Fees The principle law governing renewal of office leases is the amended Landlord and Tenant Act 1954 (not applicable in Scotland) The act provides security of tenure to a tenant and the right to apply for renewal of the tenancy. It requires compensation to tenants from landlords who refuse a tenant s request to renew. It limits the way in which a tenancy can be terminated to those specifically set out within the Act. Tenants must comply with several strict notice procedures to maintain the protection of the Act. Not all commercial tenancies fall within this act Shorter leases in multi-tenanted buildings do not. Parties often agree to exclude the security of tenure provisions of the Landlord & Tenant Act, which thereby removes the tenant s right to renewal or compensation. No standard form of lease exists in the U.K., but market norms exist for most lease agreements. The party that drafts the lease, typically the landlord, prepares a nonbinding document called a Heads of Terms, comparable to a Letter of Intent or Term Sheet in the U.S., which outlines basic terms of the lease. For new buildings, the landlord and the tenant normally execute two documents: an Agreement for Lease and a Lease. The Agreement for Lease is in effect until the tenant occupies the space. Upon possession, the Lease supersedes the Agreement for Lease. Owner occupancy is less common than in most other parts of Europe for both foreign and domestic companies. Other Transaction Costs Legal fees are typically up to 5% of the annual rent. Stamp duty is payable by tenants on the acquisition of interests in land, both freehold and leasehold. Stamp Duty for a lease is currently 1% of the net present value, discounted at 3.5% of the rent payable throughout the term of the lease, ignoring inflation as measured by the Retail Price Index (RPI) or other rental escalations included in the lease. United Kingdom Page 236 of 309

OTHER LEASE PROVISIONS Laws and Practices The principle law governing renewal of office leases is the amended Landlord and Tenant Act 1954 (not applicable in Scotland) The act provides security of tenure to a tenant and the right to apply for renewal of the tenancy. It requires compensation to tenants from landlords who refuse a tenant s request to renew. It limits the way in which a tenancy can be terminated to those specifically set out within the Act. Tenants must comply with several strict notice procedures to maintain the protection of the Act. Parties often agree to exclude the security of tenure provisions of the Landlord & Tenant Act, which thereby removes the tenant s right to renewal or compensation. The party that drafts the lease, typically the landlord, prepares a non-binding document called a Heads of Terms, comparable to a Letter of Intent or Term Sheet in the U.S., which outlines basic terms of the lease. For new buildings, the landlord and the tenant normally execute two documents: an Agreement for Lease and a Lease. The Agreement for Lease is in effect until the tenant occupies the space. Upon possession, the Lease supersedes the Agreement for Lease. Owner occupancy is less common than in most other parts of Europe for both foreign and domestic companies. Standard Lease No standard form of lease exists in the U.K., but market norms exist for most lease agreements. Right to Sublet Tenants have the right to sublet its offices in whole or part, or assign in whole, although this right is restricted. Leases normally restrict the total number of separate occupancies within the building. Option to Expand & Right of First Refusal A right to expand within a lease is rare but negotiable. A right of first refusal for other space within the building is more common. Late Delivery by Landlord Where a building is not ready for occupation on the initial agreed date, the Agreement for Lease will usually specify a clause stating what penalties the landlord will incur. In the case of a new building, it is rare for a lease to provide for late delivery as the lease is often drawn up upon building completion. Holdover by Tenant Where a lease is protected by the Landlord & Tenant Act 1954, either party is entitled to initiate the procedure for renewal within 12 months of the expiry and to then apply to the Courts to decide the terms of a new tenancy. Where this process has not been initiated or is delayed, the tenant has a right to hold over and the landlord cannot secure vacant possession unless the tenant decides to vacate or the Court agrees to the landlord s opposition to renewal. Signage and Naming of Building It is normal for a tenant occupying part of a building to have their name included in the building s directory. Where a tenant occupies the whole building, or a significant part of it (say 80%-plus), an agreement to have naming rights will initially be written in to the Heads of Terms but will also be included in the Agreement for Lease and in the lease as a binding agreement. OFFICE LEASING MARKET Transparency No publicly accessible central register of property occupation or transactions exists, but CBRE and other real estate companies collect and regularly publish market information on rents, capital values, and market conditions. Financial information relating to major property companies and funds is widely available. Rents on new leases, rent review settlements, and capital values are generally based on comparable evidence, which agents assemble from similar recent transactions. These comparables take into account the tenants, building size and condition and incentives. United Kingdom Page 237 of 309

Building Classification No standard office building classification exists; although the following specifications are used: Grade A is the best space available, usually brand new, or best secondhand space in good locations, with top specification and prominent market image. New space is always classified as Grade A space. Grade B is good-quality secondhand space, no longer considered prime because of age, location, etc. Grade C is poorer quality space, typically older and non-air conditioned with a lower standard of amenities and services. Information contained herein, including projections, has been obtained from sources believed to be 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 confirm independently its accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of the CBRE Global Chief Economist. United Kingdom Page 238 of 309

Australia What s Typical? Term 3 10 years Breaks Options rare Renewals Common Rent basis Net or gross Free rent Negotiable Escalation Rent review every 1 2 years Security 3 12 months Fit-out Tenant pays Tenant s broker Tenant pays Right to sublet Common, with landlord approval Transparency High in major markets CBRE Offices Adelaide +61 8 8110 3333 Brisbane +61 7 3833 9833 Brisbane GCS +61 7 3234 9100 Busselton +61 8 9263 5800 Cairns +61 7 4051 8922 Camden +61 2 4655 8700 Canberra +61 2 6232 2733 Chermside +61 7 3359 7411 Gold Coast +61 7 5581 2000 Ipswich +61 7 3281 6688 Mandurah +61 8 9586 4933 Melbourne +61 3 8621 3333 Melbourne GCS +61 3 8605 4500 Mulgrave +61 3 8541 3333 Northern Beaches +61 2 9939 6788 North Sydney +61 2 9954 3333 Parramatta +61 2 9891 3330 Perth +61 8 9320 0000 Perth GCS +61 8 9322 1270 South Sydney +61 2 9316 8611 South Yarra +61 3 9863 5333 Sunshine Coast +61 7 5457 5757 Sydney +61 2 9333 3333 Sydney GCS +61 2 9333 9033 Tweed Heads +61 7 5536 2322 Underwood +61 7 3340 4500 For More Information About CBRE Australia http://www.cbre.com.au/ About CBRE Australia Research http://www.cbre.com.au/research/ For Local Market Reports http://gkc3.cbre.com/search/search.aspx Contact Peter Messenger Senior Managing Director +61 2 9333 9033 peter.messenger@cbre.com.au Australia Page 239 of 309

LEASE LENGTH Term Three to ten years is typical, depending on building quality and tenant requirements. Longer leases are found in the Canberra market and in buildings with a higher concentration of government tenants. Termination or Break Early termination is negotiable but not common. Break clauses may be used by landlords with plans for refurbishment or redevelopment. Renewal Commercial occupiers generally have no automatic renewal rights unless parties agree to a formal option period. However, renewal rights are generally not difficult to negotiate, depending on market conditions. Options are nearly always subject to a market rent review. SPACE MEASUREMENT Definitions Landlords lease floor space based on the net internal area (known locally as net lettable area). The Method of Measurement, by the Property Council of Australia, is the industry standard. When leasing a full floor, space is measured from the dominant surface on the inside of the perimeter wall, including internal columns. Excluded are toilets, services ducts, stairways, tech rooms (as installed by landlord), lifts and space between lifts if they face each other. When leasing part of a floor, space measured is area enclosed by tenancy walls. Efficiency A typical ratio of carpetable area to net lettable area in a Class A building in Sydney is 97 98%. OCCUPANCY COSTS Rent Rent Rent Quoted: Landlords quote rents in Australian dollars (AUD) per sqm per year. Rental rates are usually advertised plus GST (plus goods and services tax). Rents can be quoted on a net basis (excluding outgoings; i.e., operating costs + government charges). Rent Payable: Tenants pay monthly in advance. When rents are quoted on a net basis, as they are in the Sydney CBD for example, tenants still pay the outgoings in addition to the rent. Rent Reviews Rent reviews are common and usually occur annually or every two years, as negotiated. Rents may increase by a fixed percentage (typically 3 5% annual increase, or by the inflation rate (CPI), or a with a market review. In stronger markets the Landlord may seek a market rental adjustment during the term in addition to the increases outlined above. Most rent reviews are upward only and do not allow rents to correct downwards. A dispute resolution mechanism is normally agreed for such market reviews. Australia Page 240 of 309

Outgoings Tenants pay landlords for their proportionate share on all outgoings expenses (operating, building security, building insurance, and real estate taxes) for the building, except they do not pay for major structural repairs or structural improvements. The taxes are known as statutory costs, whereas other outgoings are based on costs to run the building. The rate of outgoings varies by building and location. Outgoings in the heart of the Sydney CBD, near Circular Quay, are about AUD 190/sqm/year for premium-grade buildings, and about AUD 170 /sqm/year for Grade A buildings. Taxes The tenant pays a 10% goods and services tax (GST) to the Australian Government on all costs. Utilities Electricity is metered directly by the supply authority and the tenant is billed directly by the authority. Water is normally billed to the landlord and may be recovered in the outgoings; however, it is becoming more common in new buildings (and with large tenants) to be metered and billed directly, particularly for excess usage. Fit-Out Landlord Work: Landlords typically supply suspended ceilings, light fittings, carpeting and painted walls, and sometimes curtains or Venetian blinds, and ducted cable skirting boards with power points. Partitions may remain from the previous tenancy. Tenant Work: The tenant usually undertakes fit-out for the remaining items. The fit-out must comply with the Building Code of Australia and be approved by the landlord and by the local government building authority. The tenant normally chooses its architects, engineers and contractors. Fit-out Costs: Fit-out costs for Grade A or Prime buildings in major cities normally range from AUD 1500 2500/sqm, including construction, furniture, wiring, design fees, etc. Restoration Restoration is also known as make good. Tenants generally must restore a property to its original base building condition, taking into account fair wear and tear. This is negotiable. Security Deposits and Guarantees A typical guarantee is equivalent to three to twelve months gross rent, either as a bank guarantee or rental deposit. An owner that grants a large incentive may require a larger guarantee in the early stages of the lease to cover the upfront incentive. A guarantee from an overseas parent company is not always sufficient for a company without assets in Australia and therefore a Bank Guarantee will be required. Car Parking Car parking in office building is covered by an agreement separate from the office lease. The agreement can be with the building owner or with a third party service provider operating the car park. Spaces are typically leased on a permanent reserved basis. Australian CBD markets generally have covered parking in office buildings or purpose-built garages; rarely atgrade parking lots. The cost of parking is quoted on a per month basis. Any applicable government car space levies must also be paid. GST is payable on both the car parking space and any levy. Monthly rates vary substantially. The strongest locations in the Sydney CBD Core precinct have the highest monthly rates at about AUD 700 per month (plus parking levy, plus GST). Cities with more available parking enjoy lower rates. In the Adelaide Core, the base monthly rate for spaces under an office building is around AUD 400 450 per month and, AUD 270 290 per month in parking garages. Suburban office buildings typically provide car spaces at a much lower rate; sometimes free-of-charge to tenants with a lease in the building. Australia Page 241 of 309

Other Occupancy Costs Cleaning of tenant areas usually costs extra; about AUD 12 25/sqm/year in the Sydney CBD, for example, for all grades of office space. The tenant is responsible for maintaining demised premises. The landlord maintains the balance of the building and charges costs back to tenants with the exception of the cost of major structural repairs or structural improvements. TRANSACTION COSTS Brokerage Fees Landlords generally appoint and pay an agent to represent their interests. Most occupiers use and pay a property consultant, tenant representative or broker to secure new premises. Acquisition: Acquisition fees vary and may be based on a fixed rate per square meter, or may be equivalent to one month s rent, or may be based on an hourly rate. If a broker represents a tenant, the tenant pays a fee to the broker. Sublease, Assignment, or Surrender: Fees generally range from 11.5 15% of the average annual rent paid by the disposing party. If a broker represents a tenant, the tenant usually pays its broker. However, if the landlord pays the tenant s broker, the tenant s broker s fee is taken out of any tenant incentive. Legal Fees Each party normally pays its own legal expenses. Other Transaction Costs The tenant pays the stamp duty that the State or Territory government imposes on lease transactions (not applicable in the States of NSW & Victoria). OTHER LEASE PROVISIONS Laws and Practices Real estate legislation varies in different states and territories. The Property Council of Australia (PCA) standardizes base building definitions and services requirements, such as lift frequencies. Standard Lease Each lessor tends to have its own leases prepared by their lawyers; the majority of terms follow a similar format. Right to Sublet Tenants are normally allowed to assign or sublet space to another tenant of good standing upon written consent by the landlord. Option to Expand & Right of First Refusal A tenant may be able to negotiate a right of first refusal or a fixed option to lease identified space as part of a lease negotiation. Rental is usually adjusted to market value on exercise of option. Late Delivery by Landlord Typical penalties are in the form of free rent periods. This is negotiable. Holdover by Tenant Typical penalties are 10 15% extra net rental. Signage and Naming of Building Only large occupiers of space are offered naming or signage. These can attract additional rentals as negotiated at the time. Australia Page 242 of 309

OFFICE LEASING MARKET Market Practices Incentives are common and vary significantly from city to city, based on market conditions, strength of tenant s credit rating, length of lease, desirability of tenant, and amount of space leased. Incentives may include any of the following: (1) Rent-Free Period: i.e., free rent at the start of the lease; (2) Rental Abatement: i.e., free rent that may be partial every year; (3) Fit-Out Contribution; and (4) Relocation Contribution. Transparency Public information on lease transactions is limited and varies among states and territories. Real estate consultants generally share this information. Good comparables are available for major markets such as Melbourne, Sydney, Brisbane, Perth, Canberra and Adelaide. Building Classification Building grade classification is set out by the Property Council of Australia in their Guide to Office Buildings Quality and is determined by factors such as NLA, floor plate size, environmental, mechanical, tenant riser, lifts, electrical, standby power base, building management, communications, hydraulic, security, amenity and parking features of the building. Information contained herein, including projections, has been obtained from sources believed to be 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 confirm independently its accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of the CBRE Global Chief Economist. Australia Page 243 of 309

New Zealand What s Typical? Term 6 9 years typical Breaks Negotiable Renewals Negotiable Rent basis Net or gross Free rent 1 2 months per year of lease Escalation Annual index or negotiable Security Minimal unless large incentive given Tenant s broker Either landlord or tenant pays Fit-out Tenant pays Right to sublet Common with landlord approval Transparency Limited CBRE Offices Auckland +64 9 355 3333 Christchurch +64 3 374 9889 Hamilton +64 7 850 3333 North Auckland +64 9 984 3333 South Auckland +64 9 573 3333 Wellington +64 4 499 8899 For More Information About CBRE New Zealand http://www.cbre.co.nz/ About CBRE New Zealand Research http://www.cbre.com.au/research/ For Local Market Reports http://gkc3.cbre.com/search/search.aspx New Zealand Page 244 of 309

LEASE LENGTH Term A typical lease term is 6 9 years. Larger tenants typically lease for as long as 12 years. Smaller tenants may sometimes lease for only three years. Options to renew and terminate are negotiable. Termination or Break Options to terminate are negotiable. Renewal Options to renew are negotiable. SPACE MEASUREMENT Space Measurement The standard method of space is the Net BOMA (Building Owners and Managers Association) Standard. Efficiency A typical ratio of carpetable area to rentable area in a Class A building in Auckland is 90%. OCCUPANCY COSTS Rent Rent Quoted: Rent is quoted in New Zealand dollars (NZD) per square meter per year. Rent Payable: The tenant pays rentals monthly in advance on either a net basis or a gross basis. Rent paid on a net basis excludes all outgoings (service charges, council rates and land taxes), which the tenant pays. Rent is quoted and paid on a net basis in Auckland and Christchurch. External and structural repairs are included in the rent. Rent paid on a gross basis includes all outgoings. This has been typical in Wellington, where deals on a net basis are now becoming more common. Free Rent: The tenant sometimes negotiates free rent to cover the fit-out period. In 2010, one and a half to two months of free rent is typical for every year of the lease term. In 2009, one month of free rent was typical for every year of the lease term. Free rent in 2008 was typically about one month for every two years of the lease term. Rent Escalation: Rent reviews are generally every two or three years, depending on the lease length (term). Reviews based on CPI are becoming increasingly more common, especially for prime buildings, but market rent reviews are still most common. There is often a modified ratchet clause stating that rental, when reviewed, cannot fall below the original rental figure. Service Charge Service charge includes water rates, repair and maintenance to elevators, air conditioning, cleaning of common areas, insurance, and common area electricity. Taxes GST: Tenants pay GST and rent at the same time. However, the tenant recovers GST costs later. The net result is that no additional taxes are effectively paid. Land Tax: The only real estate tax is for council rates (land tax) as mentioned above. Council rates are annual charges by the local council, which pays for local council services. The tenant usually pays its pro rata share directly to the local authority, including any increases. Many leases exclude these from rent in Auckland but include them in Wellington, where the landlord pays the increases. New Zealand Page 245 of 309

Utilities Electricity: Generally, tenants pay for electricity used within their own space based on a meter, and a pro rata share for usage by the building. It a tenant s space has a meter, the tenant pays the electric company directly for actual consumption. If a meter measures usage from multiple tenants, tenants share charges on a pro rata basis, apportioned by the property manager, who collects the funds through the OPEX payments and then pays the electricity company. For office buildings, a typical cost for electricity is between NZD 25 and NZD 30 per sqm/year. Water: Tenants generally pay for water in their leased area through their OPEX based on the area occupied. Water costs are between NZD 2.20 and NZD 4.40 per sqm/year. Fit-Out The landlord normally delivers the space with lighted ceilings, central air conditioning, and restrooms at its own cost. Fit-out costs for Class A or Prime buildings in major cities normally range from NZD 900 1200 per sqm including construction, furniture, wiring, design fees, etc. The tenant normally pays for the initial fit-out, and sometimes the landlord contributes. Sometimes the fit-out from the previous tenant remains. The tenant is usually free to choose its contractors, although design restrictions may apply. Restoration When a tenant vacates, the lease may oblige it to make good (or repair) any damage done to the premises beyond normal wear and tear. This also includes things such as removing any hard partitions put into the premises by the tenant and repairing damage caused by their removal. However, this can be negotiable when a tenant is ready to vacate, if the fit-out may be reusable. Security Deposits and Guarantees A significant up-front payment is not commonly required in new buildings. However, an owner that provides a large incentive may require a deposit or bank guarantee for 3 6 months gross rent. Guarantees by directors, partners, or third parties (such as a bank or parent company) are often sufficient. Car Parking Tenants normally pay extra for car parking. Other Occupancy Costs Cleaning of Tenant s Premises is normally paid by the tenant. TRANSACTION COSTS Agency Fees Fees for transactions outlined below apply when a single broker represents the landlord or sublandlord. If separate brokers represent the landlord (or sublandlord or seller) and tenant (or subtenant or buyer), the fee split varies with the situation. However, a full fee is never paid twice. Sometimes the landlord (or sublandlord, or seller) pays a fee that is slightly higher than the fees outlined below (usually 15 30% higher) to be shared between brokers on a negotiated basis. Sometimes the tenant (or subtenant or buyer) pays its own broker at the rates shown above. Typical fees are: New Leases: Typical agency fees include an administration fee of NZD 500, plus: For leases up to three years: 12% of annual rental. For leases of three years and over: 13% of annual rental, increasing by 1% for each year after. A minimum fee for any transaction is NZD 2,500. For leases with an annual rental below NZD 100,000, the fee is two months gross rental. Sublease: Agency fees are the same for new leases. Lease Renewal: 5 10% of the total rent for the renewed term. Lease Termination: Tenant typically pays between 5% and 10% of savings. New Zealand Page 246 of 309

OTHER LEASE PROVISIONS Laws and Practices The Property Law Act of 2007 governs office leases, and generally applies to every lease or sublease made on, before, or after January 1, 2008. The Act is retrospective with some exceptions. If a lease omits issues included in this Act, the Act will govern. A Letter of Intent is done before the final contract. Standard Lease Two standard leases are frequently used: Property Council of New Zealand Lease (PCNZ) or Building Owners and Managers Association (BOMA) are generally used for the biggest premises. It favors landlords more than the ADSL lease, and can handle large and complex tenancy issues. Auckland District Law Society Lease (ADSL) third, fourth and fifth editions are used in 90% of leases. It fits medium and smaller buildings and favors tenants more than the PCNZ lease. Right to Sublet Subletting is common, and requires landlord approval. Option to Expand & Right of First Refusal Late Delivery by Landlord This is negotiable. There are no typical penalties. Holdover by Tenant No typical penalties exist. Signage and Naming of Building Signage and naming costs vary depending on building size, profile, etc. Auckland CBD naming rights typically range from NZD 50,000 150,000 per year. Auckland CBD signage-only rights range from NZD 30,000 90,000 per year. OFFICE LEASING MARKET Transparency For Auckland, comparables that identify tenants, square meters, and rents and incentives for recent transactions are confidential, but some details are available from consultancies. Building Classification Buildings in New Zealand are classified according to the criteria below: Premium: Top-quality landmark space, which is generally the pace setter in establishing rents; prestigious lobby, high architectural merit, prominent location, prestigious occupiers, the latest or recent generation of building services, ample natural lighting, good views, quality access to and from an attractive street environment, large size: 20,000 sqm. Prime: Combination of Premium and Grade A. Grade A: High-quality modern space with many, but not all, Premium features. Grade B: Good-quality modern space with some Grade A features. Secondary: Combination of Grade B and C. Grade C: Average quality air-conditioned space, usually of 15+ years of age that has not undergone significant refurbishment but is in a tidy condition. Grade D: Older style, poor-quality space. New Zealand Page 247 of 309

Information contained herein, including projections, has been obtained from sources believed to be 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 confirm independently its accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of the CBRE Global Chief Economist. New Zealand Page 248 of 309

China What s Typical? Term Breaks Renewals Rent basis Escalation Security Fit-out Tenant s broker Right to sublet Transparency Government 2 3 years, longer in Shanghai & Beijing Negotiable. Usually with penalty Negotiable Rent is quoted on a gross floor basis, usually excluding, sometimes including, other occupancy costs. Rent fixed for leases up to 5 years. Negotiable for longer leases 3 months cash typically, but in Beijing some large occupiers give half of the security as a bank guarantee. Tenant pays Landlord pays (for new leases) Rare Low Often provides incentives and pressure on landlords CBRE Offices Beijing +86 10 8588 0888 Chengdu +86 28 8447 0022 Chongqing +86 23 6310 7070 Dalian +86 411 3980 5855 Guangzhou +86 20 2883 9200 Hangzhou +86 571 2880 6818 Qingdao +86 532 6887 7222 Shanghai +86 21 2401 1200 Shenzhen +86 755 8271 8999 Shenyang +86 24 2318 2688 Tianjin +86 22 5832 0188 Wuhan +86 27 8555 8277 China For More Information About CBRE China http://www.cbre.com.cn/ About CBRE China Research http://www.cbre.com.cn/research/sitepag es/marketreports.aspx For Local Market Reports http://gkc3.cbre.com/search/search.aspx Contact Mark Latham Executive Director + 86 21 2401 1229 mark.latham@cbre.com.cn Page 249 of 309

LEASE LENGTH Term A standard lease term is two to three years. In some major cities like Beijing and Shanghai, large tenants take five- to six-year leases, subject to rent review after three years at open market rent (OMR), with the option to renew for three more years, usually adjusted to OMR, but renewal rent cap is negotiable for large occupiers. If parties cannot agree on OMR, an arbitrator determines the new rent. Termination or Break Not very common and is subject to the clause in the contract. The tenant may have to pay a penalty if the tenant terminates early. Renewal Renewal options are negotiable and important for large tenants. Holdover options are sometimes negotiated into the lease, depending on the level of the landlord s sophistication, and on the size and importance of the tenant. If included, landlords usually ask for 3 6 months prior notice to allow a tenant to hold over for up to three or six additional months following expiry date. SPACE MEASUREMENT Space Measurement In general, gross floor area is used as the space measurement for office leases in major cities in China. Definitions Net floor area is space that tenants can use as office space, including columns and walls, but not corridors, stairs, elevator lobbies, restrooms or plant rooms. Net floor area is measured from the center of the enclosing external and party walls. Net floor area is equivalent to carpetable area elsewhere. Common area is space for the common use of tenants, such as lobbies, elevators, elevator hall, and restrooms. Some buildings include parking spaces as common areas and provide tenants with free parking spaces according to the space that tenants occupy. Gross floor area equals net area plus common area. Gross floor area includes all areas contained within perimeter walls at each floor level, including service cores, elevator lobbies, passenger and service elevator wells, staircases, lavatories, pantries and mechanical and electrical rooms. Efficiency For Class A buildings in Shanghai, the average efficiency (i.e., the ratio of net area to gross area) is 65 76%, so that an average loss factor is 24 35%. For a Class A building in Beijing, the average efficiency is 70 75%, so that a typical loss factor is 25 30%. China Page 250 of 309

OCCUPANCY COSTS Rent Definitions These definitions apply to China only. The terms, net and gross, have different meanings in China than elsewhere. Net Exclusive Rent: Rent based on net floor area excluding other occupancy costs such as management fees, utility charges, real estate taxes, etc. Gross Exclusive Rent: Rent based on gross floor area, excluding other occupancy costs, such as management fees, utility charges, real estate taxes, etc. Net Inclusive Rent: Equals net exclusive rent plus other occupational costs such as management fees, utility charges, real estate taxes, etc. Gross Inclusive Rent: Equals gross exclusive rent plus other occupational costs, such as management fees, utility charges, real estate taxes, etc. To convert net rent (which in China means rent based on net area) to gross rent (which in China means rent based on gross area), multiply net rent by the building s efficiency rate. Rent Rent Quoted: Rent is generally quoted as gross exclusive rent per square meter, although landlords sometimes quote gross inclusive rents. In both Shanghai and Beijing, rents are generally quoted in either RMB/sqm/day or RMB/sqm/month. Rent Payable: Rent is payable monthly, in advance. The tenant pays deposit, rent, and maintenance fees based on either gross area or net area in square meters. Free Rent during Fit-Out Period: The amount depends on the size of leased area. The average in Shanghai and Beijing is one to three months for a 2000-square-meter tenant. Free Rent during Term: negotiable, and depends on factors such as size of leased area, length of term, and face rental. Rent Escalation: Rent is generally fixed during the entire term for leases of less than five years. For longerterm leases, rent sometimes escalates at an agreed rate. Costs Included in Rent: The owner pays the property tax. Landlords of well-managed buildings insure their buildings. Service Charges The tenant pays service charges (also known as management fee or management cost) to the landlord for providing specified services: air conditioning during normal office hours, elevator maintenance, power back-up, and common area cleaning, a general water charge unless the tenant installs an additional pantry, and building security. The amount varies from building to building depending upon services provided and building quality. For a Class A building, RMB 35 50 per square meter per month on net area (RMB 25 32 per square meter per month on gross area) is typical in Shanghai and Beijing. All tenants in a building typically pay a service charge at the same rate. Service charges are usually not auditable by tenants. Taxes Lease taxes may vary geographically and change over time; they mainly include: Property Tax: Owner pays annually. Also known as urban real estate tax. Levied on 12% of the annual rental income for rental properties Business Tax: Owner pays annually, along with its surcharges (including urban maintenance and construction tax and education tax, up to 10% of business tax), are levied on 5.5% of gross rental income for the leasing of a property. Stamp Duty Tax: levied on 0.1% of the contract amount on both the tenant and the landlord. China Page 251 of 309

Utilities Electricity, water and telecommunications are normally monitored by separate meters. Tenants usually pay for electricity and water used within the occupied area based on a meter. Expenses for utilities used in the common area of the building are shared according to the area of each tenant s unit. Charges vary in different areas of Beijing and Shanghai. The tenant pays a utility fee directly to the landlord, which ranges from RMB 1 1.2 per square meter per month. Fit-Out The landlord delivers premises installed for an open plan with: (1) finished ceiling, i.e., suspended ceiling using acoustic ceiling tiles and ceiling lighting; (2) HVAC and fire systems; and (3) finished restrooms in core. The tenant normally pays for the fit-out, with little or no allowance from the landlord. The tenant usually must use contractors that the landlord appoints for mechanical and electrical systems, but can usually use its own contractors for other work. Landlords sometimes charge fees for supervision, but this is negotiable. Fit-out costs for Class A or Prime buildings in Shanghai ranges from RMB 150 250 per sq. ft. including construction, furniture, wiring, design fees, etc. The costs might be higher in Beijing, ranging from RMB 300 350 per sq.ft. Restoration The lease agreement usually requires tenants to restore the property to its original condition. Security Deposits and Guarantees A three-month security deposit is normally payable upon signing of the agreement. The landlord returns the security deposit with no interest at lease expiration. When the lease is extended for another three years, the amount of security deposit is usually adjusted to OMR. Car Parking The tenant pays extra for parking, allocated by the landlord if available. Other Occupancy Costs Tenants typically insure their own property. TRANSACTION COSTS Agency Fees Agency fees differ in some locations and may be negotiable. They are typically based on the gross exclusive rent, i.e. the rent on the gross area, excluding the property management fee. New Lease: In Shanghai, landlords typically pay the tenant s agent 1 1.5 month gross exclusive rent; sometimes more for larger transactions. In Beijing, landlords typically pay the tenant s agent one month rent, excluding the property management fee. When different agents represent the landlord and tenant, landlords usually pay both agents. Tenant agents usually get 1 1.5 month rent in Shanghai and one month rent in Beijing, while commission for landlord agents ranges from 0.2 0.3 months in Shanghai and 0.3 0.5 months in Beijing. Lease Renewal: In Shanghai and Beijing, landlords rarely pay agency fees for a renewal. The tenant pays the tenant s agent ½ months rent excluding the property management fee in Shanghai and 0.5 1 months gross exclusive rent in Beijing. Sublease: In Shanghai, no standard fee exists. The tenant pays its agent a negotiated fee, which is typically one month s rent or a percentage of savings. In Beijing, tenants typically do not have the right to sublease to a third party. The tenant pays its agent a negotiated fee which is typically one month. Legal Fees The landlord s solicitors prepare a standard lease agreement, subject to negotiation by lawyers for each party. Each party usually pays for any legal fees it incurs. Other Transaction Costs Stamp Duty: Each party pays the stamp duty and other incidentals involved in lease preparation and execution. In Shanghai, Beijing and Guangzhou, the tenant pays 0.1% stamp duty for the leasing contract amount to a local district real estate exchange centre. China Page 252 of 309

OTHER LEASE PROVISIONS Laws and Practices The China government promulgated the Administration of the Leasing of Urban Premises Procedures in 1995 and all urban leasing activities must comply with this regulation. Negotiating Parties usually sign a non-binding letter of intent prior to the execution of the final contract. In Shanghai, landlords and developers usually require a non-refundable deposit equal to one month s rent payable upon execution of the letter of intent. Standard Lease The owner usually provides a standard lease contract supplied by the municipal government. Further terms and conditions of the lease are negotiable and can be attached to the contract. Right to Sublet Subletting is somewhat uncommon, except when the subtenant is a subsidiary or affiliated company of the tenant. Documents verifying a subtenant s qualification must be provided and approved by the landlord. Option to Expand & Right of First Refusal Options to expand and right of first refusal are possible for large occupiers. Also, it is a law in China that if a Landlord is selling the tenanted property, the tenant has the right of first refusal. It applies no matter whether the tenant is large or small. Late Delivery by Landlord Subject to the contract, the handover date is usually fixed and the tenant is entitled to claims for losses upon the late delivery by the landlord. Holdover by Tenant Subject to the contract, the termination date is usually fixed and can be negotiated within a period of time if the landlord consents. The contract clarifies the penalty for overdue termination, and the tenant is usually asked to indemnify landlords for losses caused by delay in surrendering the space. Any disputes can be submitted to the municipal arbitration commission or court of law. Signage and Naming of Building Signage and naming rights may be available for an anchor tenant or a large property buyer, depending on negotiation with the landlord and approval from relevant government authorities. OFFICE LEASING MARKET Market Practices Some tenants consider feng shui, for their office layout and decoration, but feng shui does not affect the choice of a location or a choice of office space. Landlords usually avoid designating floors as 4th, 13th, or 14th, because some domestic or overseas tenants consider these numbers unlucky. However, the designation of a floor is not a major influence on the rental rate. Transparency Information on recent comparable transactions in major cities and elsewhere is not available to real estate agents and their clients. China Page 253 of 309

Building Classification Grade A: Services such as cleaning of common areas, air conditioning, and lobby security are required, while tenants are usually responsible for cleaning their own premises. Grade A buildings offer access and security 24 hours a day, seven days a week. Normal HVAC hours are from 8am to 7pm, with after-hours airconditioning available at an additional charge. Grade B: Services such as cleaning of common areas, air conditioning, and lobby security are required. The major differences between Grades A and B buildings are the quality of the building and quality of the services. Grade C: Some Grade C buildings lack services outlined above. Green buildings are rare in China. PURCHASE AND SALES Agency Fees Usually the seller pays 1 1.5% to its broker. SOE (state-owned enterprise) buyers rarely pays agent fee to its broker, while overseas buyer usually pays 0.5 1% to its broker. The fee is negotiable, and influenced by market conditions and the total value of the transaction. Information contained herein, including projections, has been obtained from sources believed to be 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 confirm independently its accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of the CBRE Global Chief Economist. China Page 254 of 309

Hong Kong What s Typical? Term Breaks Renewals Rent basis Free rent Escalation Security Tenant s broker Fit-out Right to sublet Transparency Feng shui 3 or 6 years typical Negotiable but rare Options negotiable Net 1 6 months No escalation with 3-year leases. OMR after 3 years with 6-year leases Usually equivalent to 2 or 3 months rent, management fees and government rates Landlord pays Tenant pays Sometimes allowed for 20 30% of premises Highest in Asia Can affect space selection and design CBRE Offices Hong Kong +852 2820 2800 Kowloon +852 2820 8100 For More Information About CBRE Hong Kong http://www.cbre.com.hk/sitepages/default. aspx About CBRE Hong Kong Research http://www.cbre.com.hk/research/sitepag es/marketreports.aspx For Local Market Reports http://gkc3.cbre.com/search/search.aspx Contact Edward Farrelly Director, Research +852 2820 2886 edward.farrelly@cbre.com.hk Rhodri James Executive Director, Office Services +852 2820 2883 rhodri.james@cbre.com.hk Hong Kong Page 255 of 309

LEASE LENGTH Term A standard lease term is three years, but most large tenants often take leases of six to nine years subject to rent review at the end of every third year at open market rent (OMR). If the parties cannot agree on OMR, an independent expert valuer or arbitrator determines the rent. Termination or Break The Tenant can terminate the lease early by one of two ways: Through negotiation and mutual agreement to surrender by compensation. Through introduction of replacement tenant to take up a new lease with terms and condition agreeable to the landlord. Renewal Larger tenants can often secure an option to renew at expiry of the lease on original lease terms. Conditions such as serving of notice and method of assessment of the rental will be stated in the Tenancy Agreement. Typically, rent is determined by OMR at lease renewal. SPACE MEASUREMENT Space Measurement Tenants generally should engage a designer to measure the floor area of the leased premises. No single standard of space measurement applies in Hong Kong. Floor areas are usually quoted based on either of gross area, lettable area, or net area. There are 3 bases of measurement in which rents, service charges and various charges are quoted. Tenants should understand the difference between them in order to compare the true cost on actual useable space of the premises. Definitions Gross Area: The total area measured to the outside of external walls, including elevator lobbies and wells, restrooms, staircases and all mechanical areas. Similar to lettable area, all elements of the common areas are apportioned on a pro-rata basis if the floor is subdivided. Lettable Area: The net area, plus structural columns and a percentage of common areas such as elevator lobbies and restrooms. Common areas are apportioned on a pro-rata basis if the floor is subdivided. Net Area: The actual usable carpet areas of the premises and in some cases also include elevator lobbies. Efficiency: A percentage that represents a ratio of useable area to gross area (or lettable or net area), as illustrated in examples below. The term carpetable area is not familiar in Hong Kong. A typical 10,000-sq. ft. gross floor plate will have approximately 8,500 sq. ft. lettable and approximately 7,500 sq. ft. net usable square feet. A landlord can quote on a gross, lettable, or net area basis. Efficiency Gross Basis: If a landlord quotes rent on a gross basis, the tenant pays on a gross basis, but typically the tenant can only use about 75% of the space it pays rent on. The efficiency is 75% in this example. Depending on the size of the floor plate, efficiencies range from 60 80% when the landlord quotes on a gross basis. Lettable Basis: If the landlord quotes rent on a lettable basis, the tenant pays on that basis, but typically the tenant can only use 85% of the space it pays rent on. The efficiency is 85% in this example. Efficiency of lettable area depends on the size of the floor plate and usually range from 80 93% when the landlord quotes on a lettable basis. Net Basis: When landlords quote and tenants pay on a net basis, efficiency is usually 100%, but it can range from 95 100%. This means a tenant can actually use 95 100% of the space it pays for; up to 5% can be lost to a lift lobby area. Hong Kong Page 256 of 309

OCCUPANCY COSTS Rent Currency: Hong Kong Dollars (HKD or HK$). Asking rent: Rent quoted by landlord, usually with room for negotiation. Face or Headline Rent: Rent achieved after negotiation. Effective Rent: Average rental achieved for the lease period after deduction of rent free period or other leasing incentives. Calculated over the term of the lease. Rent quoted: Rent is quoted and payable in Hong Kong dollars per square foot on a gross, or lettable or net area, on a per month basis. Rent Payable: Rent is payable monthly in advance in and are usually exclusive of management fee, rates, service charge or any additional costs. Free Rent: Also called rent free. An incentive offered by the landlord to the tenant as an allowance for the fitting-out of the premises. The length of the rent free period depends on the size of the premises and the prevailing market conditions. During tight market conditions, free rent offered may range from one to three months. During weak market conditions, some landlords offer six free months or more, depending on the tenant, the length of the lease term, the size of the space leased and the rental rate. Rent Escalation: Rent is fixed during the lease term. Service Charges A charge applicable to each tenant calculated on the letting area of the premises in net, lettable or gross. The fee is quoted on per square foot per month and is non-negotiable and may be revised from time to time. This fee normally includes charges for the central air conditioning supply, building management, cleaning and service of the common areas etc. A typical service charge for a Grade A building is HKD 6 10 per square foot per month. Taxes Government Rates: A tax payable to the government on a quarterly basis on 5% of the rateable value as evaluated by the government, typically paid by the tenant. VAT: Not applicable in Hong Kong. Utilities The tenant pays for electricity, water, and gas used in the premises, usually directly to the utility company. The electricity charge is usually based on a meter, and is typically HKD 1.00 1.20 per square foot per month for an office tenant. Tenants usually pay for water based on a meter, although some pay a fixed license fee or pay for water in the management fee. Hong Kong Page 257 of 309

Tenant Improvements Tenants normally pay for all tenant improvements, except that the landlord normally delivers the space with suspended ceilings, ceiling lighting and restrooms (landlord s standard handover condition). A tenant is generally free to use its own architect and engineers, and must use the landlord s contractor for electrical work and plumbing. The tenant must fit-out the premises according to plans and specifications as approved in writing by the landlord. Fit-out costs are typically quoted and assessed on the net square footage of the space and for Class A or Prime buildings normally range from HKD 450 1200 per square foot, including construction, furniture, wiring, design fees, etc. For tenant-paid improvements at move-in and during occupancy, the landlord charges handling fees, typically 10% of the price quoted by nominated contractors for carrying out electrical, plumbing, air conditioning, and fire prevention maintenance work. Ranges shown below include design and engineering fees but exclude furniture and IT cabling: Average: HKD 250 350 per square foot net (basic specifications to suit-trading companies). Enhanced: HDK 350 450 per square foot net. Professional Services: HKD 450 800 per square foot net. Very High-End: Some investment banks spend over HDK 850 per square foot net on renovation. Restoration The lease agreement generally requires tenants to restore the property to its original handover condition. Reinstatement costs for Class A or Prime buildings normally range from 100 150 HKD per square foot net. Security Deposits and Guarantees This is usually equivalent to two or three months rent, management fees and government rates and is payable by the tenant to the landlord upon signing the formal Tenancy Agreement. The security deposit is held by the landlord for the period of the tenancy and, provided that the tenant has upheld all conditions of the tenancy (such as paying the rent and bills, and maintaining the property in good condition), is refundable after the tenancy period. Terms on which the deposit is refunded should be stated in the formal Tenancy Agreement; most tenancy agreements stipulate that the security deposit will be returned within fourteen days to one month after the tenant moves out to give the landlord time to check the condition of the property and see that all bills have been settled. Unlike many other countries, in Hong Kong the security deposit is repaid without interest. Car Parking The average rate ranges from HKD 3,000 6,800 per month in addition to office rent. Terms and conditions are covered in a separate license agreement, usually not coterminous with the tenancy agreement, so that the licensee can rent a parking space for a shorter period than an office lease. Parking spaces can be fixed (assigned) or floating (non-assigned), covered or outdoor, 24 hours, seven days a week, or 8am to 6pm, Monday to Friday. Generally, up to two spaces are allocated for a 10,000-square-foot office. Other Occupancy Costs No other significant occupancy costs generally apply. Hong Kong Page 258 of 309

TRANSACTION COSTS Agency Fees New Lease: The landlord usually pays 1 1½ months rent to the agent who introduces a tenant to the landlord. Lease Renewal: The tenant pays the fee to the broker representing the tenant. The normal standard rate is a portion of one month or a percentage of savings over the new lease term based on the landlord s initial quote. Sublease: Typically the sublandlord pays the fee to its broker. The normal standard rate, which is negotiable, is 1 2 months rent. The sublandlord normally offers 1 1½ months commission to find a subtenant, which may be split between the agent acting for the sublandlord and the agent acting for the subtenant. If the sublandlord s agent finds a new tenant on his own, the broker keeps the entire fee. If the sublandlord s agent acts in conjunction with an outside agent to find a new subtenant, then the two agents typically split the fee. Purchase and Sale: Usually the buyer pays 1% to its broker, and the seller pays 1% to its broker. The fee is negotiable, and influenced by market conditions and the total value of the transaction. Legal Fees Tenant and landlord may appoint their own legal representatives. Unless specified otherwise, each party bears its own legal costs. Other Transaction Costs Both parties typically share equally a one-time cost of stamp duty, and other incidentals involved in preparation and execution of lease documents. With a surrender or sublease, the outgoing tenant pays the costs. OTHER LEASE PROVISIONS Laws and Practices No clauses in the lease may contravene the Deed of Mutual Covenant (DMC) of the concerned premises. Each building has its own DMC. DMC is a legal document binding the building owners registered in the Land Registry. The DMC clearly sets out the rights, interests and obligations of the owners, occupiers, tenants and property management agents in respect of the control, administration, maintenance and management of private properties, common parts and facilities of buildings. Source: http://www.bd.gov.hk/english/documents/code/bmg/bmg_ch2.doc. The DMC has a binding force over all owners, incorporated owners, managers, tenants, and users of the building. Relevant parties can take legal action against the party who violates the DMC. Standard Lease Solicitors prepare the lease agreement using fairly standard terms and conditions. A standard tenancy agreement is common, and landlords are generally reluctant to accept major changes. Major landlords usually have their own standard tenancy agreements, which include some landlord-specific terms. Right to Sublet Replacing a tenant can be done in one of two ways: Sublease or Assignment. In either case, the outgoing tenant will need permission and co-operation of the landlord and should expect to pay the landlord s share of the agency fee, legal costs and stamp duty payable. Sublease The new or replacement tenant takes over the property until the expiry of the existing lease. Large tenants normally find it easier to secure sublet rights than small tenants do. If a landlord agrees to grant a sublet right, the maximum size to be sublet is specified in the tenancy agreement. The norm is 20 30% of the total floor area. Assignment The new or replacement tenant has a lease granted by the landlord. Hong Kong Page 259 of 309

Option to Expand & Right of First Refusal Unusual but negotiable. A right of first refusal is more common. When a new space becomes available, the landlord will give written notice to the tenant with a right of first refusal over that space and the tenant typically has up to three months to accept that right. Late Delivery by Landlord The commencement date is typically subject to availability. Late delivery is rare. Holdover by Tenant A holdover period can usually be negotiated at a premium rent. Signage and Naming of Building Signage and naming rights depend on the area leased and are subject to availability. OFFICE LEASING MARKET Market Practices Feng Shui: According to traditional Chinese custom, the advice of a feng shui expert is sought when moving to a new house or office or retail shop. The expert advises on the suitability of the new location for the individual or business. Feng shui experts also advise tenants as to how to improve the living or working environment. Hong Kong Districts: Hong Kong s office market has been traditionally dominated by a handful of centralized districts. Central is widely regarded as the city s CBD and is the finance district. Other centralized business hubs include Admiralty, Wan Chai and Causeway Bay, all on Hong Kong Island, and Tsim Sha Tsui, on the Kowloon side. More recently, some upscale decentralized markets, such as Quarry Bay in Hong Kong Island East, and Kowloon Bay and Kwun Tong in east Kowloon, are gaining popularity. Transparency Hong Kong has one of the most transparent real estate markets in Asia. The land registry system and transaction records are well-developed and accessible to the public. Comparables that identify tenants, square feet, rents and incentives for recent transactions are generally available. Building Classification The Hong Kong Rating & Valuation Department, a government body, has provided a commonly used classification system. Only privately held office buildings are included in this classification system. Office grades are: Grade A: Modern with high-quality finishes; flexible layout; large floor plates; spacious, well-designed lobbies and circulation areas; effective central air conditioning; good lift services zoned for passengers and goods deliveries; professional management; parking facilities normally available. Although location is not a feature of grade in the HK Government grading system, many consultancies, like CBRE, consider certain buildings that do not otherwise fulfill the Grade A requirements to be Grade A because of their prime location(s). Grade B: Ordinary design with good-quality finishes; flexible layout; average-sized floor plates; adequate lobbies; central or free-standing air conditioning; adequate lift services, good management; parking facilities not essential. Grade C: Plain with basic finishes; less flexible layout; small floor plates; basic lobbies; generally without central air conditioning; barely adequate or inadequate lift services; minimal to average management; no parking facilities. Hong Kong Page 260 of 309

PURCHASE AND SALES Market Practices Strata-title ownership involves the sub-division of land interest into undivided-shares belonging to individual owners. The rights and responsibilities of property owners and overall property stewardship are outlined within the Deed of Mutual Covenant. Agency Fees Usually the buyer pays 1% to its broker, and the seller pays 1% to its broker. The fee is negotiable, and influenced by market conditions and the total value of the transaction. Other Transaction Costs Stamp Duty is payable on Agreements and Assignments (sales and purchase). The maximum taxable rate is 4.25% for transaction of properties valued more than HK$ 21,739,120. This is to be shared equally by both parties. Buyers are not permitted to defer payment of stamp duty on such transactions. Information contained herein, including projections, has been obtained from sources believed to be 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 confirm independently its accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of the CBRE Global Chief Economist. Hong Kong Page 261 of 309

India What s Typical? Term Breaks Renewals Rent basis Free rent Escalation Security Tenant s broker Fit-out Right to Sublet Transparency 3 or 5 years After lock-in period with 3 6 months notice Multiple options; e.g.: 3+3+3 or 5+5+5 Net Negotiable 15 20% every 3 yrs, or fair market 6 9 months for any tenant Landlord and tenant pay or landlord pays Various: bare shell to fully furnished Rare. Requires landlord consent High for major cities CBRE Offices New Delhi +91 11 4239 0200 Gurgaon +91 12 4465 9700 Mumbai +91 22 4069 0100 Bangalore +91 80 4074 0000 Chennai +91 44 2821 4599 Hyderabad +91 40 4033 5000 Pune +91 20 4019 0100 Kolkata +91 33 4019 0200 For More Information About CBRE India http://www.cbre.co.in/sitepages/default.as px About CBRE India Research http://www.cbre.co.in/research/sitepages /Home.aspx For Local Market Reports http://gkc3.cbre.com/search/search.aspx Contact Manish Kashyap Managing Director +91 12 4465 9700 manish.kashyap@cbre.com India Page 262 of 309

LEASE LENGTH Term Lease terms in India are mostly three years, while few extend to five years. In Mumbai lease terms are for a maximum of five years with a break clause after the initial three years. Termination or Break By practice (not law) tenants are allowed to break with notice after a lock-in period expires. The lock-in period is the period during which a tenant guarantees to stay in the leased property. If a tenant vacates before the lock-in period expires, the tenant is liable to pay the rent for the remaining lock-in period. The lock-in period ranges from 24 36 months, with an option to terminate the lease upon serving 3 6 months notice before the lock-in term expires. Renewal In a three year lease tenants have the option to renew the lease after the end of the three year period for two more terms of three years each. Leases which are for five years offer options to renew for five more years. SPACE MEASUREMENT Space Measurement The quoted area is always the gross area. All contracts and commercial terms of a lease are based on the gross area. Definitions Gross Area includes carpet area plus common areas, staircases, balconies, lift lobbies, basement, terrace, parking, stilt areas, besides other common facilities in the building. Efficiency Net usable area (equivalent to the carpetable area or carpet area ) is approximately 67 80% of the Gross Area. OCCUPANCY COSTS Rent Rent Quoted: Rent is usually quoted on the gross area in Indian Rupees (INR) per square foot per month. Quoted rent usually excludes costs of operating and maintenance. Rent Payable: Rent is usually payable monthly in advance. Free Rent: Free rent is negotiable. In 2012, one to two free months is typical in New Delhi; one to two free months is typical in Mumbai. Rent Escalation: In most cases, rent escalation is pre-fixed, typically 15 20% after every three years. Infrequently, in some leases, parties agree that the tenant will pay fair market rental at the time of lease renewal, with a ceiling or cap, i.e., maximum, to which rent can escalate from existing levels. Maintenance Charges The landlord charges a client for basic property management services: sanitorial services, building security services, common area maintenance, etc. Maintenance charges can range from INR 5 15 per square foot per month, depending on the building type and on services offered, such as central air conditioning for premises, 100% power back-up, etc. Typical area maintenance charges in Grade A buildings in New Delhi and Mumbai: Include central air conditioning costs: INR 15 20 per sq. ft. per month (central air conditioning costs include electricity to operate the system, power back-up, and maintenance). Exclude central air conditioning costs: INR 6 8 per sq. ft. per month. Tenants may get the option to exclude central air conditioning. India Page 263 of 309

Taxes Services Tax and Surcharge: The state charges a statutory services tax on all sale transactions and leases, because it treats them as services. The tax applies to rent, and the tenant pays it monthly. The rate in 2010 is 10% plus 3% of the 10% as a surcharge, so the total tax is 10.3%. Municipal Taxes: The costs of municipal taxes are included in the rent. The landlord or tenant pays for any increases, depending on their agreement. Utilities The tenant usually pays the cost of electric consumption within its space, either directly to the public utility company via direct meter, or through the landlord via submeter. Landlords do not mark up the electric charge when submetered. Fit-Out Space may be delivered in any of these conditions: Bare Shell: This is a simple, plain cement structure with chilled water lines and common electric connection. The tenant must carry out interior fit-outs, electrical and plumbing work. In Mumbai, New Delhi, and elsewhere, the landlord normally delivers new space as a bare shell. The tenant does the fit-out. Warm Shell: This includes AC ducting, basic electrical wiring and plumbing. In a warm shell lease, the client may decide to do the fit-out or ask the developer to do it. Semi-Furnished: This comes with false ceiling, flooring, and rest rooms, and the tenant does the rest. Fully Furnished: This is a plug-and-play facility ready for tenant to move-in. If a tenant does the fit-out, the tenant pays the architect, contractor, etc. The tenant does not need to hire the landlord s contractor nor pay the landlord a supervision fee for construction, electrical work, structural work, and plumbing. Fit-out costs for Class A or Prime buildings in major cities are typically INR 1500 3000 per square foot including construction, furniture, wiring, design fees, etc. Restoration Most leases provide for the restoration of premises to its original condition, subject to normal wear and tear. Security Deposits and Guarantees The tenant pays the lessor a security deposit, which is non-interest bearing and refundable upon termination of the lease agreement. The security deposit can range from 6 9 months rent regardless of the credit strength of the tenant. Security is negotiable along with rent and other business terms, and often exceeds the amount needed to protect against tenant default. To determine if the amount is reasonable, it is necessary to consider the terms of the entire agreement, in addition to the tenant s creditworthiness. Landlords use security deposits: To protect the landlord against tenant default. To cover the landlord s costs if a tenant gives notice before landlord s costs have been amortized. To fund the landlord s other projects, because it is more difficult for developers to get funding in capital markets. Therefore, landlords tend to insist on cash, rather than letters of credit (guarantees) from banks, and resist putting security deposits into escrow accounts. Landlords also resist giving bank guarantees to tenants to guarantee return of security, because this would require landlords to maintain bank deposits to cover the amount of the security. Car Parking Tenants pay extra for parking in any business district. Monthly parking costs per car range from INR 2,500 6,000 in Delhi and INR 5,000 15,000 in Mumbai. In New Delhi and Mumbai, the standard allocation for new developments is one space per 1000 sq. ft. leased. Some developers provide one space per 700 sq. ft. Bangalore code requires one space per 500 sq. ft. leased. Tenants may get extra space for parking at additional costs. Other Occupancy Costs No other significant occupancy costs generally apply. India Page 264 of 309

TRANSACTION COSTS Agency Fees New Lease: The brokerage or fee norm for real estate agent that represent the tenant is one month s net rent from the tenant and one month s net rent from the landlord. Recently the trend has been for the landlord to pay 2 months net rent to the tenant s broker. Landlords rarely use brokers, perhaps 10% of the time. When different brokers represent the landlord and the tenant, each broker typically receives one month s rent from the party it represents. Lease Renewal: A broker is generally involved at the time of renewal by a tenant only when terms are renegotiated. The tenant pays a fee based on percent of savings achieved, normally 7 10%. Lease Termination: Generally, a broker is not involved. If a tenant uses a broker, the fee is negotiable. Sublease: The sublandlord pays one month to its broker or to the tenant s broker or to both, as negotiated. Legal Fees Legal fees include stamp duty, registration charges and mutation fees. Lawyer fees depend upon individual transactions and cannot be generalised. Other Transaction Costs The tenant pays the stamp duty and lease document registration charges. A lease agreement exceeding 11 months must be registered. It is valid in a court of law only if it is registered and the stamp duty is duly paid on it. An unregistered lease document may expose a tenant to risk in the event of a dispute. The tenant, not the landlord registers the lease. Lease registration protects the tenant, because courts do not recognize un-registered leases. Lease registration is also needed to get necessary permits and licenses. Stamp duty charges vary from state to state in India. India Generally: The range is 4 12% of the average annual rent. Mumbai: For a Leave & License agreement, stamp duty charges for a 5-year tenure is INR 50,000. For a lease, the stamp duty charges vary depending on the term and the market value of the property, and are subject to a maximum of 5% of the property value. OTHER LEASE PROVISIONS Laws and Practices No Civil Code Applies to Leases India does not have a standard civil code that applies to leases. Lease vs. Leave and Licence Agreements A lease (of immoveable property), as defined under Section 105 of The Transfer of Property Act, 1882, is a transfer of a right to enjoy such property for a certain time or in perpetuity on consideration to be rendered periodically or on specified occasions. Leave & Licence, as defined in Section 52 of the Indian Easement Act, 1882, creates no interest in the premises in favor of the licensee except the right to use and occupy the premises for a limited duration. In Mumbai, parties normally use a leave & licence agreement instead of a lease agreement. Negotiating Parties usually sign a letter of intent before the final contract is executed between the landlord and the tenant. The letter of intent can be binding or non-binding. Standard Lease Standard leases are rare. Contracts vary from one landlord to another. Most developers and landlords provide leases, negotiable by both parties and by their legal counsels. India Page 265 of 309

Right to Sublet Subletting is rare and requires landlord consent. The original tenant is liable for rent payment.in Mumbai the landlord does not permit subletting due to regulations. Option to Expand & Right of First Refusal An option to Expand is usually negotiable. In New Delhi, a right of first refusal is normally available in a newly constructed building to tenants that occupy substantial areas, because new buildings typically have space availability. Late Delivery by Landlord A penalty is negotiable, and is typically one rent-free day for each day of delay. Holdover by Tenant If a tenant occupies the premises after lease expiration without renewing the lease, the tenant must pay penal rent ranging from 2 5 times the rent just before expiration. The amount of the penalty is negotiated and included in the lease. Signage and Naming of Building Signage rights depend on the size of the space leased and are negotiable. A tenant leasing a very large amount of space may get the right to affix signs, nameplates or advertisements inside and outside. Small and medium-sized tenants get the right only to put their nameplate in the building lobby and at the entrance to the premises. OFFICE LEASING MARKET Market Practices Over the past few years, with increasing participation of multinational occupiers, developers and landlords, markets are becoming more mature and regularized. Tenants can find premises with all requisite approvals, title documents, etc., in place. International occupiers typically lease buildings, rather than own, as there are restrictions on their purchase of office property. Transparency Gradual reforms are taking place in rules and regulations. The Government has relaxed foreign direct investment norms for overseas firms to invest in India, leading to the entry of big international real estate funds and developers, and prompting a move toward greater transparency. Comparables, indicating tenants, square feet, rents, and incentives, are generally available in Mumbai and New Delhi, Bangalore, Pune, and Chennai. Building Classification Although no formal system is used to classify office buildings, these terms are used informally: Grade A Buildings: These have large floor plates, big lobbies, air conditioning, professional facility management services and quality construction. Grade A space is centrally air conditioned, with dedicated parking, security and common property management (also called common area management). Most Grade A properties hire companies like CBRE for their common property management. Grade B Buildings: These have lower-quality construction and fewer facilities than Grade A. Grade C Buildings: These have minimum facilities. PURCHASE AND SALES Market Practices Many buildings were strata sold (strata-title sold) and were not registered with the government department. The term strata-title means that the units in a building are owned by various occupiers or investors. New developments in suburban areas of Gurgaon have witnessed the rise of strata sale opportunities, with developers offering space to multiple investors. India Page 266 of 309

Agency Fees The brokerage or fee norm for real estate agent that represent the tenant or the landlord is 1 2% of the entire size of the transaction. Information contained herein, including projections, has been obtained from sources believed to be 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 confirm independently its accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of the CBRE Global Chief Economist. India Page 267 of 309

Japan What s Typical? Traditional Leases (Most Leases) Term Usually 2 years Break Tenant only with 6 months notice Renewal Tenants have security of tenure Free rent Negotiable, and typically 6 months Escalation Rent can be varied during lease term Fixed Term Leases (Common in Prime Grade A Buildings) Term Usually 3 to 5 years Break Usually no break right Renewal Re-contraction option is negotiable Free rent Negotiable, and typically 6 months Escalation Rent fixed during the lease term Traditional and Fixed Term Leases Rent basis Net Security Deposit 10 12 months rent Tenant s broker Tenant pays Fit-out Landlord contributions very unusual Right to sublet Rarely allowed Transparency Very low. Law forbids disclosure CBRE Offices Inquiries for Japan +81 3 5470 8800 Tokyo +81 3 5470 8711 Osaka +81 6 6261 2111 Sapporo +81 11 231 6931 Sendai +81 22 262 5651 Saitama +81 48 642 9831 Shinjuku +81 3 3343 3731 Nihonbashi +81 3 6895 5001 Yokohama +81 45 316 4311 Kanazawa +81 76 239 4041 Nagoya +81 52 205 6541 Kyoto +81 75 257 7881 Kobe +81 78 392 5431 Takamatsu +81 87 821 2601 Hiroshima +81 82 243 9321 Fukuoka +81 92 472 1711 For More Information About CBRE Japan http://www.cbre.co.jp/pages/default.aspx About CBRE Japan Research http://www.cbre.co.jp/en/research_cente r/pages/default.aspx For Local Market Reports http://gkc3.cbre.com/search/search.aspx Contact Fred Takahashi Executive Director +81 3 5470 8870 fred.takahashi@cbre.co.jp Japan Page 268 of 309

LEASE LENGTH Term Two types of lease structures exist in Japan: traditional and fixed-term leases. Traditional Leases The traditional Japanese lease is usually for two years, is perpetually renewable, and offers security of tenure to occupiers. As long as a tenant is not in breach of the lease, the tenant can retain occupancy. Fixed Term Leases The fixed-term lease, most commonly for 5 years, and sometimes as short as 3 years, cannot be renewed. A revision to the tenancy law in 2000 allowed landlords and tenants to enter into longer fixed-term leases without the tenant s right to renew unilaterally. As the Tokyo rental level is still very low in early 2012, landlords usually resist having a lease term longer than 5 years, as it would lock in the low rent for the term. The fixed term lease was introduced in 2000 and gives landlords much greater control over tenant selection and rental values. Landlords of Grade A buildings in prime locations are pushing for fixed-term leases, but the traditional lease prevails in the overall market. Tenants familiar with the old market practice of traditional leases should consider the impact of a fixed-term lease on their long-term real estate cost, and should balance the loss of term flexibility with flexibility elsewhere in the lease, including lower rent and sublease options. Termination or Break Traditional Leases The tenant commonly has the right to terminate (Kaiyaku Yokoku) the lease at any time upon six months written notice without penalty. This six-month termination provision is highly valued by tenants and allows occupiers maximum flexibility to hedge against market volatility and business change. Under the traditional lease, the landlord does not have the freedom to terminate under the real-estate law unless the tenant is in breach or the landlord has a genuine reason, such as self-occupation or redevelopment. Fixed Term Leases In a fixed-term lease, an option to terminate is by negotiation. A tenant may cancel a contract at any time by paying a rental fee as agreed in the contract. Renewal Traditional Leases Traditional leases are renewed automatically at the same rent if neither party applies for a change. There is an element of rent control which protects both parties from volatile market shifts. Generally, the new rent on renewal is the midway point between passing and market rent. Renewal Fee (Koshin-ryo): Some small- and medium-sized buildings require a renewal fee; usually one month s rent at the rate stipulated in the new rental contract. As fixed term lease does not provide renewals, this renewal fee only applies to traditional leases only. Fixed Term Leases Fixed term leases may not be renewed, but the landlord and tenant may negotiate a lease re-contract within a specified window of time prior to the expiry of the existing lease. Usually the new lease re-contract must be executed 6 months prior to the current lease expiry. The crucial difference to the traditional structure is that the rent under the new lease will be at market rent, as if it was a new letting. SPACE MEASUREMENT Space Measurement Most Grade A buildings in prime locations adopt net measurement, with the lease line to include only the pure office area, and not to include common area such as toilets, pantries and elevator halls. Japan Page 269 of 309

Definitions Floor space (menseki) is usually measured in square meters or in tsubos.1 tsubo = 3.3058 square meters = 35.58 square feet Exclusive Tenant Space (senyo menseki): Space occupied by a tenant, measured from wall center to wall center. Common Space (kyoyo menseki): Halls, and restrooms and elevators shared by two or more tenants. Contracted or Rentable Space (keiyaku menseki): This can either include or exclude part of the common space, although it is more likely that part of the common space be excluded. Efficiency Contracted space is normally exclusive tenant space, so efficiency is 100%. OCCUPANCY COSTS Rent Rent Quoted: Rent is normally quoted in Japanese Yen (JPY) per tsubo per month; rarely JPY per square meter per month. Some landlords quote gross rent, known as Kyoeki-hi Komi: i.e., rent for the leased area, plus common area maintenance fee (also called common expense charges or CAMF, or Kyoeki-hi) combined. Other landlords quote net rent and CAMF separately. No official term exists for net rent. Rent Negotiability: Long-term tenants with strong landlord relationships often can negotiate a below-market rent. Rent Payable: The first month s rent is paid in advance at move-in. Rent is payable monthly in advance. Rent Commencement: Rent usually begins on the day a tenant takes possession (lease commencement). Occasionally, rent may commence the day a tenant moves its equipment in or begins remodeling. Landlords of new buildings are sometimes more flexible on terms when they have a pressing need to attract tenants. Rent during Fit-Out: In a strong market, it is common for a tenant to pay rent while fitting-out the space. In a weaker market, fit-out can usually be completed during rent-free periods that are negotiable, although the common area maintenance fee typically remains payable. Free Rent: Free rent is typically 6 months total in the early-2012 market. The amount of free rent also depends on conditions, such as whether the leasing structure is traditional or fixed-term. Landlords generally give more free rent with fixed-term leases because they tend to be longer than two years. Rent Reviews: Under a traditional lease, rent review provisions take place at renewals. No valuation formula is applied. The new rent is negotiated, and is usually a blend of existing rent rate and new lease market rate. Technically, re-contract of fixed term leases are judged to be new leases. Typically, landlords attempt to raise rents when nearby comparable buildings increase their rents. Rent Increases at Renewal: Rent is usually revised to market when rental contracts are renewed. For traditional leases, this occurs every two years. For fixed-term leases, this occurs on lease expiration. Items Covered in Base Rent: The owner normally pays the cost of insurance, repairs and property taxes, which are included in the base rent. Japan Page 270 of 309

Common Area Maintenance (CAM) Charges (Kyoeki-hi) Costs Included in CAM Charges: These charges cover operating costs to maintain the common areas of the building. Large high-rise office buildings generally include air conditioning in the common expense charge for prescribed office hours, with an additional charge for usage outside of those hours. The cost of standard security services is included within the common area maintenance (CAM) charge. Typical Monthly CAM Charge for a Grade A building in Tokyo is JPY 5000 6000 per tsubo. Adjustments: CAM charges are usually not adjusted unless significant changes occur in the economic environment, whereas the traditional lease provides for rents to be reviewed every two years. Negotiability: CAM charges are usually not negotiable because they are considered direct cost recoveries. In actuality, a market rate prevails, and over time the owner may profit from these recoveries. This extra cost is sometimes avoidable if a tenant has sufficient negotiating leverage. Disclosure is not required. Building owners in Japan are usually not required to disclose actual uses of Kyoeki-hi. No formula exists to explain the relationship between actual utility usage and the fee tenants pay as Kyoeki-hi. When a tenant pays gross rent, known as Kyoeki-hi Komi, all CAM charges, outlined above, are included in the rent. Taxes Fixed Asset Tax: The fixed asset tax is levied on fixed assets including land, building and other depreciable assets for business purposes. Both the building owners and tenants pay fixed asset taxes. The building owners pay tax on the property (skeleton) and the tenants pay tax on the additional improvements. The standard tax rate of 1.4% is levied on the additional improvements (depreciable assets) every year until the end of depreciation when the value is more than JPY 200,000. A tenant that remodels its occupied space may incur a fixed asset tax (depreciation tax). Business Office Tax: The business office tax is levied on the floor space of business offices (assets levy) and on the number of employees employed in the offices (employees levy). It is payable by users of offices and corporations that occupy over 1000 square meters in floor space and/or having more than 100 employees in the subject property. Assets levy is payable at a rate of JPY 600 per square meter of the office floor space. Employees levy is payable at a rate of 0.25% of the total amount of employees payroll. Corporations who leased and/or owned business offices pay this tax every year. Consumption Tax (C-Tax): As of February 2012, 5% C-Tax is charged on all outgoings including rent, improvements, and utility charges, but not on the security deposit. This tax is levied on payment basis. Utilities Electricity: Tenants normally pay the landlord for electricity based on a meter, although sometimes based on the amount of space occupied. The cost of electricity is typically JPY 20 25 per kwh. Air conditioning cost is included in CAM for normal business hours, called core time. Tenants usually pay for overtime air conditioning cost by a meter. Unit AC system costs are billed at a metered rate as electricity. Water charge for common use space is included in CAM. When tenants have water in occupied spaces, it is charged according to usage as measured by a meter. Fit-Out The landlord normally provides a drop (i.e., suspended) ceiling with ceiling lights and common area restrooms. The tenant normally pays for all other improvements, including restrooms within the demised premises. Most Grade A buildings have approved architects and contractors that tenants must use, even where their rates are above market. The landlord often charges for the review of design documents and for supervision. Fit-out costs for Grade A or Prime buildings in major cities normally range from JPY 400,000 600,000 per tsubo including construction, furniture, wiring, design fees, etc. Restoration Restoration is known as Genjo-kaifuku. At the end of the lease contract, the tenant, at its own expense, restores the premises to its original condition. Such restoration usually includes, at a minimum, repairs to all walls, floors and ceilings and removal of tenant-installed fixtures. Japan Page 271 of 309

Security Deposits and Guarantees Deposit Money (Hosho-kin/Shiki-kin): Tenants leasing office space in Tokyo almost always pay the owner a noninterest-bearing deposit before occupancy. The lessor returns it when the tenant vacates after deducting unpaid rent or damages. As of early 2012, 10 12 months of rent is typical, regardless of the tenant s nationality. It is possible for companies with a good convenant to negotiate reductions to the standard security deposit, although zero deposit and bank guarantees are highly unusual and are strongly resisted by most landlords. Car Parking In central Tokyo, rent per parking space is generally JPY 50,000 90,000 per month. If a tenant uses parking spaces in the building it occupies, the cost is negotiable. If the demand for parking space exceeds supply, spaces are usually allocated based on the floor area occupied. Other Occupancy Costs Cleaning: The tenant usually pays for cleaning of the tenant s space. Insurance Costs: In Tokyo, both the owner and the tenant usually buy insurance to cover property damage and personal injury. The tenant s or owner s insurance company pays, depending on which party is at fault. Key money payments are rare for commercial office leases. TRANSACTION COSTS Agency Fees (Chukai Tesu-ryo) In Japan, the tenant pays the introducer (agent) a commission (Chukai Tesu-ryo). Landlords rarely deal directly with tenants, so tenants must use and pay agents to see available space. Typical agency fees are as follows: New Lease: One month s rent; normally the tenant pays. This applies to both traditional and fixed-term leases. When different brokers represent the landlord and the tenant, this fee is divided, as negotiated. Sublease: One month s rent; normally the subtenant pays. Legal Fees Most tenants prepare their legal counsel for contractual activities. Other Transaction Costs No other significant costs apply to general office leases. Stamp duty does not apply to lease agreements. OTHER LEASE PROVISIONS Laws and Practices The Land Lease and House Lease Act governs office leases. Standard Lease The big landlords usually use their own contract formats for leasing contracts. Right to Sublet Subleases and assignments are rarely allowed, in either traditional or fixed leases. Option to Expand & Right of First Refusal Late Delivery by Landlord Negotiable. Major tenants usually get a right of first refusal. Late delivery by landlord is rare in Japan. Holdover by Tenant A traditional Japanese lease automatically renews for a new two-year term. Fixed-term leases give the tenant no security of tenure. Issues of renewal and holdover are yet to be tested in the courts. Japan Page 272 of 309

Signage and Naming of Building Modern Grade A buildings normally offer prominent signage. Tenants that occupy an entire building may be able to negotiate naming rights. OFFICE LEASING MARKET Market Practices Tenants commonly appoint tenant reps to conduct renewals and relocations. Transactions are generally not publicly announced Therefore, negotiation leverage is produced by access to off-market information. Transparency New and higher standards of transparency and disclosure are becoming more common in the Japanese real estate market. Nevertheless, Article 45 of the Land and House Lease Law prohibits disclosure of information gained through completion of a transaction, regardless of whether or not a confidentiality agreement was executed between parties. Therefore, details of comparable leasing transactions are unavailable. Building Classification Grade A Buildings are generally new, meet high-spec and new earthquake-resistant standards, and are in mature office districts. Other grade buildings are typically older, less highly specified and further from transportation. PURCHASE AND SALES Market Practices Buyers commonly appoint a buy-side advisor/agent Transactions are generally not publicly announced. Properties are not openly marketed. Agency Fees Up to 3% of transaction value. Seller and buyer each pay their own agent. Other Transaction Costs Stamp Duty, Real Estate Acquisition Tax, and Registration Tax are generally required for hard asset sales, however, there are exceptions. Capital Gains Tax is only payable by the seller when making a profit on the sale. Purchasers will also generally incur costs for legal and accounting/ tax advice, real estate appraisals and due diligence works including engineering and environmental reports. Dependant on the circumstances of the deal and holding structure used, loan, asset management and entrustment establishment fees can also be applicable. Information contained herein, including projections, has been obtained from sources believed to be 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 confirm independently its accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of the CBRE Global Chief Economist. Japan Page 273 of 309

Malaysia What s Typical? Term Breaks Renewals Rent basis Free rent Escalation Security Tenant s broker Fit-out Right to sublet Transparency 3 years Options rare Multiple 3 year options at market Gross 1 3 months Property tax increases 2 3 mo gross rent + 1 mo utility deposit Landlord pays Tenant pays Rare Limited CBRE Offices Kuala Lumpur +603 2092 5955 For More Information About CBRE Malaysia www.cbre.com.my About CBRE Malaysia Research http://www.cbre.com.my/researchcenter For Local Market Reports http://gkc3.cbre.com/search/search.aspx Contact Christopher Boyd Executive Chairman +603 2092 5955 chris.boyd@cbre.com.my Paul Kong Executive Director +603 2092 5955 +603 2092 5955 Nabeel Hussain Vice President, Research +603 2092 5955 nabeel.hussain@cbre.com.my Malaysia Page 274 of 309

LEASE LENGTH Term A typical tenancy term is 3+3 years; i.e., an initial term for three years with a tenant s option to renew for three more years at a rental reviewed at the prevailing market rent. Termination or Break An option to terminate is not common, but if included, the tenant or landlord typically must serve 3 6 months in advance and may have to pay a specified penalty. Renewal An option to renew for additional terms of 1 3 years is common, usually for one or two terms only for small spaces and up to five terms for larger occupiers. For example: A small occupier may negotiate an option for one additional term; e.g., 3+3 years. A small occupier may negotiate options for two additional terms; e.g., 3+3+3 years. A larger occupier may negotiate up to five terms; e.g., 3+3+3+3+3+3 years. SPACE MEASUREMENT Space Measurement Space is commonly measured and quoted as net lettable area in square feet. Definitions Net lettable area: Includes usable area and internal columns but excludes common areas such as lift lobbies, corridors, toilets and mechanical and electrical rooms. The net lettable area sometimes includes toilets and primary circulation for tenants that occupy full floors or entire buildings. Efficiency When a tenant leases less than a full floor, the net lettable area equals the carpetable area; therefore the efficiency is 100% and the loss factor is 0%. If toilets and the primary circulation area are included in the net lettable area, as discussed above, efficiency is less than 100%. OCCUPANCY COSTS Rent Gross Rent Quoted: The landlord quotes rent, which includes cost of staffing, cleaning, maintenance, sanitation, and repairs of entire building except for tenanted areas in addition to statutory outgoings, building security, administrative costs, and air conditioning during normal office hours. Currency: Rent is quoted in Malaysian Ringgit (MYR)/sq ft/month. Rent Payable: Monthly in advance. Free Rent: A rent-free period for the fit-out term generally ranges between 1 3 months. Review to Market: Upon renewal, rent is increased or decreased (rarely) to market rent, as determined by negotiation and review of comparable transactions. Service Charges Tenant pays gross rent, which includes service charges. The tenancy agreement typically specifies that the tenant pays a proportionate share of increases in service charges, but this is rarely invoked. Taxes Landlord pays the property tax, and tenant typically pays a proportionate share of any increases. There is no VAT or GST applicable. Malaysia Page 275 of 309

Utilities Electricity Charges for the Demised Premises: The tenant pays either the landlord or the utility company for actual usage based on a meter. Air Conditioning Charge: The cost of air conditioning during normal hours is included in the rent. An additional hourly charge applies for after-hours air conditioning. The amount charged depends on air conditioning zones and ranges between MYR 50 200 per hour per zone. Fit-Out Tenant pays the fit-out costs, and the landlord rarely contributes. Fit-out costs for Class A or Prime buildings in major cities normally range from MYR 100 200 per sq. ft., which includes construction, furniture, design fees, etc. The improvements are subject to the landlord s consent. Restoration A typical tenancy agreement stipulates that the tenant must restore the demised premises to their original condition. Security Deposits and Guarantees Tenant pays 2 3 months gross rent plus one month gross rent for utility deposit (for electricity) to the landlord upon signing the tenancy agreement. The deposit is usually in cash. A bank guarantee is rare but occasionally allowed for a substantial anchor tenant. Car Parking Car parking charges are payable in addition to gross rents. Parking bays are typically allocated based on a ratio of approximately one bay per 1000 sq. ft. of office space leased. Additional car parking is arranged privately with the landlord or car park operator. In the Kuala Lumpur city area, car parking typically costs MYR 150 250 per bay per month. TRANSACTION COSTS Agency Fees For a New Lease The landlord usually pays agency fees. When different agents represent the landlord and the tenant, fees are typically shared or each party pays its agent. The following maximum fee scale, approved by the Board of Valuers, Appraisers and Estate Agents, applies for the initial tenancy period only and is subject to 5% government service tax. Up to three years: 1.25 months gross rental. Exceeding three years up to four years: 1.50 months gross rental. Exceeding four years up to five years: 1.75 months gross rental. Exceeding five years: 1.75 months gross rental. Exceeding five years (without option for renewal): 1.75 months gross rental. Exceeding five years (with option to renew): 1.75 months gross rental plus 0.25 months gross rental for each additional year. For a Lease Renewal Frequently the landlord negotiates renewals without an agent. If the landlord engages an agent, the landlord pays the agent. If a tenant engages an agent to negotiate its lease renewals, the tenant normally pays its agent. The maximum fee scale for rent reviews, as approved by the Board of Valuers, Appraisers and Estate Agents, is 50% of the fees chargeable for new leases (outlined above), subject to a 6% government service tax. For a Lease Termination No specific fee scale exists because tenants rarely engage agents for lease terminations. Legal Fees Landlord and tenant pay their own legal advisor. Malaysia Page 276 of 309

Other Transaction Costs Typically, the tenant pays legal fees, stamp duty, and other incidentals involved in the preparation and execution of tenancy agreements. For office space, the landlord prepares the lease document and charges the tenant administrative fees (including legal fees), plus stamp duty for the tenancy agreement. OTHER LEASE PROVISIONS Laws and Practices There are no specific laws relating to commercial leases. In the event of any dispute, the Law of Contract, The National Land Code and case law applies. The landlord gives a Letter of Offer to the tenant together with a copy of the Tenancy Agreement. Upon agreement of the terms, the tenant accepts the offer and pays an earnest deposit to reserve the premises. Earnest deposit is typically one month s gross rent (upon signing of the tenancy agreement, this earnest deposit is then treated as the one month advance rent). Within 14 days, the tenant and landlord must enter into a Tenancy Agreement. Upon signing of the Tenancy Agreement, the tenant is required to pay two to three months security deposit, one month utility deposit and one month advance rent. Standard Lease There are no standard leases, but many leases have similar terms. Right to Sublet Subletting is rare. The tenant must obtain the landlord s approval before subletting to a third-party tenant. Option to Expand & Right of First Refusal An option to expand is not common, but if included will indicate the tenant s first right of refusal when a specified space becomes available. Late Delivery by Landlord This is rarely addressed in the lease. Holdover by Tenant This is rarely addressed in the lease, which may provide for double rent in the event of an unauthorized holdover. Signage and Naming of Building This may be available to large tenants for an additional fee. OFFICE LEASING MARKET Market Practices Tenant reps are typically appointed by tenant to conduct relocations; renewals are often concluded directly between the landlord and tenant. Some office buildings appoint sole agents, but most work with a number of agents. Vacancies may or may not be marketed by landlords. Negotiation leverage is produced by access to off-market information and information provided by agents Transparency For the Kuala Lumpur market, information on recent transactions including names of tenants, lease terms, size and rents, although not disclosed in any public domain, are generally available on an indicative basis. Malaysia Page 277 of 309

Building Classification Grade A buildings may include: Location in prime business districts. High-quality building interior and exterior finishes. High-quality mechanical and electrical (M&E) provisions: particularly air conditioning, building automation systems (BAS), high speed lifts and other intelligent building and security systems. Relatively column-free floor layout. Grand ground floor lobby, typically with double-height ceiling. Sufficient car parking provisions. High floor-to-ceiling clearance. Facilities such as executive toilets and kitchenettes/pantries. Large vertical cable ducts, uninterrupted emergency power supply, under-floor trunking or raised floor. PURCHASE AND SALES Market Practices In an effort to boost investment in the country, the Government of Malaysia has repealed the Foreign Investment Committee (FIC) guidelines in 2009. This resulted in the abolition of most restrictions on the purchase of properties by foreign investors. Agency Fees The seller normally pays its agent. The buyer customarily does not appoint an agent. The maximum scale fees as approved by the Board of Valuers, Appraisers and Estate Agent, Ministry of Finance for Sale and Purchase of land and buildings is 3%, subject to a 6% government service tax. Other Transaction Costs The tenant pays legal fees, stamp duty, and other incidentals involved in the preparation and execution of tenancy agreements. For office space, the landlord prepares the lease document and charges the tenant administrative fees (including legal fees), plus stamp duty for the tenancy agreement. Information contained herein, including projections, has been obtained from sources believed to be 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 confirm independently its accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of the CBRE Global Chief Economist. Malaysia Page 278 of 309

Philippines What s Typical? Term Breaks Renewals Rent Basis Renewal Rent Free rent Escalation Security Commission Fit-out Right to sublet Transparency 3 to 5 years. 10 years for tenants of larger space. Negotiable with penalties Negotiable. Net rent Negotiable but may be adjusted to prevailing market rates at the time the option for renewal is exercised. Free rent for fit-out is 1 to 3 months and up to 4 months for tenants of larger space. Annual as negotiated. 3 months rents Landlord pays for the commission. Tenant pays for the fit-out costs. Subletting is allowed. Low CBRE Offices Manila +632 752 2580 Cebu +6332 318 0070 For More Information About CBRE Philippines www.cbre.com.ph/ About CBRE Philippines Research http://www.cbre.com.ph/researchcenter.aspx For Local Market Reports http://gkc3.cbre.com/search/search.aspx Contact Joey Radovan Vice Chairman +632 759 4158 joey.radovan@cbre.com.ph Victor Asuncion Executive Director +632 752 2580 victor.asuncion@cbre.com.ph Philippines Page 279 of 309

LEASE LENGTH Term 3 to 5 years with an option to renew is typical. Tenants of larger space often lease for 10 years. Termination or Break This option is negotiable. Pre-termination of tenants requires 3 6 months prior notice. Penalties for tenants range from 3 6 months worth of lease depending on the agreement. If the lease contract is silent on the pre-termination penalties, tenant is required to pay for the remaining unpaid leases of the entire lease period. Renewal A renewal option is negotiable. The rent is negotiable but may be adjusted to prevailing market rates at the time the option for renewal is exercised. SPACE MEASUREMENT Space Measurement Office space is measured in square meters. Definitions Gross Leasable Area (GLA), also called leasable area or rentable area, is the basis of office space measurements. GLA measurement is taken from the internal finished surface of permanent walls and from the internal finished surfaces of dominant portions of the permanent outer building wall. GLA includes areas occupied by window mullions, window frames, structural columns, engaged perimeter columns or piers and areas occupied by additional facilities specially constructed for individual tenants other than in the areas described in the exclusions. GLA excludes lift lobbies, passageways, toilets, washrooms, and similar useable common areas. GLA also excludes stairs, lift shafts and motor rooms, and all vertical shafts that carry services. Gross Floor Area measurement extends to the permanent outer building wall. It includes space occupied by vertical shafts (stairwells, elevator shafts, and electrical and telecommunications risers, etc.). Net Useable Area (NUA), is also known as carpetable area. Measurement is taken from the internal finished surfaces of permanent walls and from the internal finished surfaces of dominant portions of the permanent outer building wall. For subdivided floors measured to the center of inter-tenancy walls or partitions except where the walls or partitions adjoin public areas, measurements are taken to the line of the dominant portion of the public area. Included in the NUA are areas occupied by window mullions, window frames, structural columns and areas occupied by additional facilities specially constructed for individual tenants other than the areas listed below. The usable area normally excludes: (1) All stairs, recessed doorways, toilets, cleaners, storerooms, lift shafts and meter rooms, escalators, smoke lobbies, tea rooms and other service areas that are standard facilities in the building; (2) Lift lobbies; (3) Public spaces or thoroughfares; (4) Areas occupied by electrical or telephone conducts and air conditioning risers to the floor if standard in the building; (5) Areas and access ways for service vehicles and for delivery of goods, unless for the exclusive use of one occupier; (6) Car parking areas and access ways thereto, unless for the exclusive use of one occupier; (7) Areas with less than 1.5 meters clear height above floor level. Efficiency A typical ratio of net usable (carpetable) to leasable (rentable) area for older Grade A buildings is 75 85% and over 85 94% for the newer ones. Philippines Page 280 of 309

OCCUPANCY COSTS Rent Rent Quoted and Paid on Net Basis: Landlords quote rent in Philippines Pesos (PHP or PhP) per square meter per month. Office rentals in major central business districts are generally on a net basis. Rent Payable: Aside from the advance payments, rents may be paid monthly or quarterly depending on the agreement. Advance Payment (also called Advance Rent Payments): These typically include three months advance rent, which the owner applies either to the first three months or to the last three months of the lease term, plus a security deposit equivalent to three months rent. VAT: 12% value added tax applies to payable rents and does not apply to monthly dues Rent Escalation: Rents usually escalate annually starting on the second year of the lease term. This is subject to an agreement between parties, and may depend on the length of the lease term and other factors. Costs Included in Rent: The landlord pays for rates on land tax, which is the only real estate tax. The landlord pays for external and structural repairs. Free Rent Period: The owner may grant a one- to three-month free rent period for fit-out, prior to rent commencement or four months for tenants of larger space. Additional free rent periods are rare. Monthly Dues Monthly dues are also called building management dues. Parties negotiate and specify in the lease agreement which items the landlord pays and the items the tenant pays. The tenant pays monthly dues, which are subject to annual review. Monthly dues typically cover: Building staff salaries, including security staff. Electricity and water for common areas. Air conditioning of common areas, such as hallways and lobby. Some Repairs: Elevator repair and maintenance, locks and security devices. Cleaning of the common areas. Taxes The landlord pays for the real property taxes. The real property taxes paid are the land tax and tax on the building. Utilities Electricity and Water: The tenant pays the utility company directly for usage within the premises, as measured by a meter. For Air Conditioning of Tenant s Premises: The tenant pays the power company or the landlord, based on metered consumption. This usually applies to offices operating on 24/7 basis. Air conditioning for regular office hours may be included in the payment of the monthly dues, and the tenant pays extra for air conditioning outside the normal office hours. Cleaning: The tenant normally hires and pays the cleaning staff to clean the tenant s space. Fit-Out Landlord Work: The landlord generally provides the external walls, acoustic ceiling boards, lighting fixtures, air conditioning ducts, sprinkler system, smoke detector, fire hydrant and fire extinguisher and restrooms, or delivers fit-out from the previous tenant. Tenant Work: The tenant normally undertakes and pays for the fit-out and is usually free to choose its contractors. Design restrictions may apply. Fit-out costs: The cost for interior construction, furniture, wiring, and design fees ranges from: PHP 15,000/sqm for middle-range work, to PHP 30,000/sqm for high-end work. Restoration Restoration of property to its original condition after the lease term expires is negotiable and addressed in the lease contract. Lease contracts, especially in better-quality buildings, require that the tenant leave the premises in good order, and repair and make good any damage. Philippines Page 281 of 309

Security Deposits and Guarantees The security deposit normally equals three months rent, and is refundable after the lease expires. Any costs to cover tenant-caused damages to the leased area are subtracted from the security deposit. Handover condition (e.g., bare shell, semi fitted, fully fitted) should be clearly stipulated in the lease agreement. Car Parking The tenant normally pays for parking separately from rent. Other Occupancy Costs Service Charge: This is a charge for a service outside the common services offered by the landlord. Charges for cleaning the office premises and charges for assistance in moving furniture and equipment are normally considered service charges. Insurance: Tenants are liable for insuring the contents of their office. Tenants usually take out an insurance policy at their own initiative to cover costs from damages incurred during operation of their business. Some landlords require tenants to show proof that they are insured. Extra security if needed. TRANSACTION COSTS Agency Fees Fees shown are divided 50% 50% when separate brokers represent landlord and tenant. New Leases: The landlord pays the agency fee to its broker for new leases: one month s rent for leases up to 3 years, 2 months rent for leases over 3 years and below 5 years, and 2 months rent for leases over 5 years. Lease Renewals: The tenant pays the fee to tenant s broker, which is negotiable but may be a percentage of the savings in the renegotiated rate. Sublease: The sublandlord pays one month s rent for leases up to 3 years, 2 months rent for leases over 3 years up to 5 years, and 3 months rent for leases over 5 years. Legal Fees Consultation with lawyers in terms of the contract is common. The tenant usually bears other legal costs, such as traditional due diligence which includes verification of title and ownership, encumbrances of property, illegal tenants or existence of other lease agreements, updated payments of taxes and other pertinent dues (e.g., building management, association dues, etc.) The tenant does not typically pay the cost of the landlord s lawyer. Other Transaction Costs Notarization of the contract may be done by either of the parties. Notarization is a common practice and adds protection for both tenant and landlord, as this makes the contract admissible as evidence when litigating lease agreement disputes. Costs due at signing include: Up-front payment= advance payment + additional payments, which may include vetting fees, a construction bond, electrical charges, etc. Quarterly or monthly rent payment, and Fit-out deposit, which the landlord refunds after the fit-out is complete. OTHER LEASE PROVISIONS Laws and Practices No specific laws govern office leases. Parties rely on the lease agreement for protection. Negotiating The landlord or the tenant may initiate the process by submitting a proposal to the other. The tenant s agent commonly submits a letter of intent before parties proceed to the final contract. Philippines Page 282 of 309

Standard Lease Terms and clauses are essentially the same from contract to contract, although no uniform template exists. Each landlord has its own way to format the document. Each landlord has its own contract. Right to Sublet Subletting is allowed. Option to Expand & Right of First Refusal Late Delivery by Landlord Negotiable. Rental rebates are typical. Holdover by Tenant No standard practice exists. Signage and Naming of Building Signage and naming rights and costs vary and may be negotiable, depending on building and tenant size, tenant profile, location, etc. OFFICE LEASING MARKET Transparency Information about tenants, square meters and rents and incentives for recent transactions is not generally available or shared. Building Classification Prime (also called Premium) buildings typically have: (1) High-quality, well-maintained interior and exterior finishes; (2) Large floor plates: not less than 1000 sqm; (3) Ratio of leasable area to gross floor area of 80% or less, due to larger common areas; (4) Adequate parking facilities for building occupants and guests; (5) One hundred percent back-up power; (6) Telecommunication redundancy; (7) Central air conditioning capable of 24/7 operation; (8) Lift services zoned for passengers; (9) Building management system (BMS); (10) Extra amenities, aside from cafeteria or food court, such as business centers, fitness gyms, conference facilities, etc.; (11) Central location within prime business districts. Grade A buildings have features similar to those of prime buildings, although they may lack the extra amenities outlined above. Grade B and Grade C buildings have interior and exterior finishes of lower quality than Grade A buildings. Building efficiency is generally not less than 85%. Back-up power is typically limited. Parking facilities within building premises are limited. Call centers and other Business Process Outsourcing (BPO) tenants may choose these buildings, which may be located where more human resources are available and rents are lower. PURCHASE AND SALES Market Practices Sale of office units is very rare. Information contained herein, including projections, has been obtained from sources believed to be 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 confirm independently its accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of the CBRE Global Chief Economist. Philippines Page 283 of 309

Singapore What s Typical? Term Breaks Renewals Rent basis Free rent Escalation Security Tenant s broker Fit-out Right to Sublet Transparency 3 years No break right 3 years (3+3 typical) Gross 1 2 months for fit-out Rent not escalated 3 months or more Landlord pays agency fees for new lettings. Tenant pays in case of renewals. Tenant pays Rare High. Comparables available. CBRE Offices Singapore +65 6224 8181 For More Information About CBRE Singapore http://www.cbre.com.sg/sitepages/default.aspx For Local Market Reports http://gkc3.cbre.com/search/search.aspx Singapore Page 284 of 309

LEASE LENGTH Term The lease term is normally three years. Termination or Break Landlords do not give break options. Renewal Most leases three-year leases include an option to renew for three more years at an agreed rent or at the prevailing market rent at the time of renewal. SPACE MEASUREMENT Space Measurement Space is measured and quoted as net lettable area (NLA) in square feet. Definitions Lettable area (NLA) as defined: Includes carpetable area (i.e., the area available to the tenant for office use). Includes space occupied by columns (i.e., pillars). May or may not include corridors between elevators and tenant space. Excludes areas occupied by toilets, elevators, shafts, part of exterior walls, and ground floor lobby space. Efficiency A typical ratio of carpetable area to net lettable area in a Class A building in Singapore is 90%. OCCUPANCY COSTS Rent Gross rents: All rents in Singapore are gross: i.e., they include a service charge for specified services, including building staff, building security, building repairs, air conditioning during normal office hours, elevator maintenance and common area cleaning. The tenant pays a 7% Goods & Services Tax (GST) on the gross rent. Rent Quoted: Rent for office space is quoted in Singapore dollars (SGD) per square foot per month. Rent Payable: Rent is payable monthly or quarterly in advance. Free Rent: Tenants are normally given a reasonable rent-free period for fit-out, typically 1 2 months, before the lease commencement date or before the rent commencement date, as negotiated. Rent is normally fixed, not escalated, during the term. Operating Costs Operating costs are included in the gross rent. Taxes Property Tax Increases: Although the landlord pays the property tax levied by the Inland Revenue Authority of Singapore, a provision in the lease is usually included that allows the landlord to recover from the tenant any tax increase during the lease term which is attributable to the premises. Utilities The tenant pays directly to authorities for water, electricity and telecom services. The tenant must arrange with Singapore Powers Services to install a separate utility meter and with Singapore Telecom to lay telecommunication lines within the premises. The tenant pays 7% GST on utility charges. Singapore Page 285 of 309

Fit-Out Landlord Work: The landlord normally delivers space with a floor management system and ceiling system, including tiles, light fittings, sprinkler heads, and central air conditioning with ductwork, diffusers, etc. [Does the landlord deliver finished common areas including main lobby, floor lobbies, and restrooms also?] Tenant Work: The tenant normally carries out the remaining fit-out. Fit-out costs for Class A or Prime buildings in major cities normally range from SGD 70 120 per sq. ft. including construction, furniture, wiring for telephones, data and electricity, design fees, etc., but excluding technology (i.e., excluding switchboard, IT equipment, photocopier, etc.). Restoration A standard clause in the lease agreement requires tenants to restore (reinstate) the premises to their original condition, except for fair wear and tear. This clause is negotiable. Security Deposits and Guarantees A minimal rental deposit, typically equivalent to three months gross rent, sometimes more for a less creditworthy tenant, is payable as follows: Upon confirmation of the intention to lease space (upon signing a letter of offer), an initial security deposit of one month s gross rent is payable. Upon signing the lease agreement or taking possession of the premises, a balance of two months gross rent is normally payable. The landlord refunds three months gross rental deposit to the tenant upon lease expiration, subject to the tenant s due performance of terms and conditions of the lease. The landlord reserves the right to deduct all costs payable by the tenant due to a breach by the tenant. Car Parking Tenants pay extra for parking. Class A buildings normally provide one space per 1000 2,500 sq. ft. leased. Other Occupancy Costs No other significant occupancy costs apply. TRANSACTION COSTS Agency Fees These rates are fixed, not negotiable. If separate brokers represent the two parties, the brokers split the fees. New Lease: Landlord pays one month s gross rent. Lease Renewal: Tenant typically pays ½ month or 8 15% of savings during lease period. The agent s fee is subject to negotiations with the tenant as well as market conditions. Lease Termination: Tenant pays one month s rent. Sublease: Sublessor pays one month s rent. Purchase: Owner, or sometimes buyer, pays 1%. Legal Fees The landlord s solicitors normally prepare the lease agreement. Market practice is for the tenant to pay legal fees for both the landlord s lawyer and tenant s lawyer. Other Transaction Costs The tenant normally pays stamp duty and other incidentals in preparation and execution of the lease documents by the landlord. Singapore Page 286 of 309

OTHER LEASE PROVISIONS Laws and Practices Council of Estate Agencies Estate Agents Act There is no significant legislation or law related to building development. Standard Lease Every landlord has its own lease. Leases vary among landlords. Right to Sublet Subletting is rare and usually not addressed in the lease agreement. Landlords require approval for subletting, and usually allow for partial subletting. Option to Expand & Right of First Refusal Late Delivery by Landlord This is sometimes granted. A right of first refusal is normally available only to anchor tenants. Most tenancy agreements do not address late delivery, except with buildings under construction. In buildings under construction, the tenancy agreement may provide for changes in the delivery dates. Holdover by Tenant The typical penalty is double rental, and is not usually negotiable. Some lease agreements do not address the issue of holdover. Usually both parties will come to some agreement on this before the lease runs out. Signage and Naming of Building The landlord may grant this benefit to major tenants who lease over 20% of the building s net lettable area. OFFICE LEASING MARKET Market Practices Contracts tent to be more favourable towards landlords. Generally, landlords pays for agency fees for new tenants. Transparency Comparables, which identify tenants, square feet, rents and incentives, are generally available for recent transactions. Building Classification Grade A: A landmark building in the CBD area with modern flexible layout and floorplate above 15,000 sf. The building size is above 300,000 sf and offers underground parking and good lift services zoned for passengers and goods deliveries. It offers high technical specification (such as raised floors, 24-hour cooling system) and good quality building services (e.g. security, CCTV), professionally managed. The building is located often in CBD and is in close vicinity to the public transport. Grade B: Quality building with modern building services. Good-quality finishes and professionally managed. Grade C: Average building with average building services. Grade D: Deteriorating building, poorly maintained. PURCHASE AND SALES Market Practices Selected deals may be subjected to due diligence. Singapore Page 287 of 309

Agency Fees Generally negotiable with industry benchmark quoted as 1% of gross sale price. If the buyer engages an exclusive broker, the agency fees will be paid by the buyer in such instance. However, if there is co-agent, the agent will be considered to be serving the seller s interest. Other Transaction Costs Legal fees are payable by respective parties. GST of 7% to be paid by the buyer. Stamp duty is payable by the buyer per below. Every $100 or part thereof of the first $180,000 : $1 Every $100 or part thereof of the first $180,000 : $2 Every $100 or part thereof of the remainder : $3 Information contained herein, including projections, has been obtained from sources believed to be 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 confirm independently its accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of the CBRE Global Chief Economist. Singapore Page 288 of 309

South Korea What s Typical? Term Breaks Renewals Rent basis Free rent Escalation Security Tenant s broker Fit-out Right to Sublet Transparency 2 3 years typical Negotiable Negotiable Net (excludes security deposit and maintenance fee) For fit-out period, sometime more CPI or market 30 40% of total rent over term Tenant pays Tenant pays Rarely allowed Limited but improving CBRE Offices Seoul +822 2170 5800 For More Information About CBRE South Korea http://www.cbrekorea.com/sitepages/defa ult.aspx About CBRE South Korea Research http://www.cbrekorea.com/research/sitep ages/marketreports.aspx For Local Market Reports http://gkc3.cbre.com/search/search.aspx Contact Steve Y.K. Kim Managing Director, South Korea +822 2170 5801 steve.kim@cbrekorea.com Jusin Kim Associate Director +822 2170 5855 justin.kim@cbrekorea.com Insub Park Analyst +822 2170 5850 insub.park@cbrekorea.com South Korea Page 289 of 309

LEASE LENGTH Term Typically, most landlords offer lease terms of two to three years. One-year leases are very rare and mostly only available for local tenants in Grade B buildings. Termination or Break Termination options are negotiable. And early termination right can be also negotiated under the lease agreement. Normally, 3 6 month prior notice with penalty is required to terminate a lease. The penalty of early termination usually ranges between one to three months rent and service charges. However, when signing the lease contract the termination clause can be negotiated without penalty obligations. Renewal Renewal options are negotiable. Options for lease renewal are subject to rent adjustments. Rights of renewal allow the tenant the option of renewing the lease typically for one further year after the serving of a trigger notice to the landlord usually at least three months prior to lease expiry. Other Lease Options Though not common, the right to sublet the premises to the tenant s subsidiary companies can be negotiated with the landlord. SPACE MEASUREMENT Space Measurement The tenant pays the deposit, rent and maintenance fees in Korean Won (KRW) based on gross area, expressed in square meters. Definitions Gross Area is the sum of the common area and net area. Common Area is the space for common use of tenants. Lobby, elevators, elevator hall, and restrooms are all included in the common area (most buildings include parking space as common area, and provide tenants with free parking according to the amount of office space that tenants occupy). Net Area is the exact space that tenants can use for their offices. Before July 2008, the unit of space measurement was the pyung. One pyung equals 3.3058 sqm, and is nearly the same as ping, used in China, and tsubo, used in Japan. From July 2008, the unit of space measurement is square meters, which has replaced pyung, according to the law. Efficiency The efficiency ratio of net useable (lettable) area to Gross Floor Area (GFA) varies widely according to the efficiency of the superstructure and the basement level areas included in the GFA calculations. Gross efficiency is generally of 50 55% for Grade A buildings. South Korea Page 290 of 309

OCCUPANCY COSTS Rent Wolsei and Jeonsei The two principal leasing systems in Korea are wolsei and jeonsei. Almost all Grade A buildings accept only wolsei rent. Most foreign occupiers lease on a wolsei basis. Except for a brief description of the jeonsei system below, information for Korea applies to the wolsei system. Wolsei: The wolsei (monthly basis rent) system is similar to the rental system used in the U.S. and other countries. The tenant pays a security deposit (typically equivalent to ten months rent), monthly rent, and maintenance fees. Jeonsei: With the outdated jeonsei system, the tenant pays key money or jeonsei to the landlord in lieu of a monthly net rent. This sum is equivalent to 60 70% of the capital value of leased space and is returned without interest at lease termination or expiration. Tenants are responsible for monthly maintenance fees. Only a few office buildings in the outer areas of CBD, Gangnam Business District (GBD), Yeouido Business District (YBD), and residential properties still use the jeonsei system. Most are converting to a monthly basis rental system. Rent Rent Quoted: Rent is quoted on gross rentable area and on a net basis (i.e., excluding maintenance fees) per square meter per month. Rent Payable: Rent is payable monthly in advance, together with maintenance fees. Rent Escalation: This is based on CPI or Market (3 7% based on changes in asking rents for comparable properties). Free Rent: Tenants in 2012 rarely get free rent beyond the fit-out period in Gangnam and Yeouido. However, they must pay the maintenance fee during the free rent period. However tenants in 2012 get free rent in CBD. Maintenance Fees Maintenance fees (service charges) are based on market rates, as determined by the landlord, not on actual cost recovery. Maintenance fees cover the cost associated with the tenant s leased premises and common areas, including: Maintenance and Cleaning Cleaning of the common areas (including washrooms) is included in the maintenance fee, along with emptying of trashcans only in the tenant premises. Additional cleaning services, such as vacuuming of tenant s premises, are done once or twice a year, and are included in the maintenance fees. Tenants do not usually arrange for additional cleaning services; however, if they do wish for extra services the tenant pays the landlord. Building Security It is normal for tenants in Seoul to pay for additional security such as security devices or unmanned security systems for the leased premises. Generally, tenants are not permitted to hire security agencies separately. Utilities The tenant pays for the utilities below as part of the maintenance fees, not separately, unless the tenant installs additional utility systems, such as additional cooler systems for servers, with permission, and pays the cost. The charges differ from building to building and generally refer to the use of the facilities such as air conditioning, electricity and gas, water and other services provided by the owner, during normal office hours, typically from 8 am to 6 pm, as well as during non-business hours. During non-business hours, air-conditioning is switched off. Most landlords will charge separately for additional air-conditioning units installed by the tenant. Average utility costs of office buildings managed by the CBRE Seoul office are approximately KRW 1,200 1,500 /sqm. Electricity accounts for 60 70% of total cost, water 10%, and heating 20 30%. Electricity costs for office tenants are usually in the form of a fixed amount plus a portion included in maintenance fees. South Korea Page 291 of 309

Taxes VAT: 10% of the monthly rent and maintenance fee is charged as VAT. The related tax for security deposits is generally born by the lesser. Fit-Out Landlord Work: Typical hand-over condition includes finished floors (carpet tiles in Grade A space), suspended ceilings with lights, plastered and painted demising walls, a built-in fire sprinkler system over the ceiling, and a central air conditioning system. Tenant Work: Tenants typically pay to fit-out the premises with internal partitions, carpeting, blinds, curtains, telecommunication, electrical wiring, etc. Large tenants (1000 2300 sqm) typically need about 50 days for fit-out. Smaller tenants (below 1000 sqm) generally need about 35 days. Fit-out Costs for Class A or Prime buildings in major cities normally range from KRW 800,000 1,200,000 per sqm, which includes construction, furniture, wiring, design fees, etc. Landlords maintain common areas and building systems. Restoration At the end of the term, the tenant must restore the premises to its original hand-over condition, fair wear and tear excepted. The lease contract normally addresses restoration. Security Deposits and Guarantees No rental guarantee is typically required in Seoul Grade A office markets, even for start-up companies. The tenant must pay a security deposit, which is generally 30 40% of total rent payable over the term of the lease. This is held until the end of the lease, then given back to the tenant once the lease expires. Car Parking Most buildings include car parking in the calculation of gross rentable area, based on a ratio of one lot (parking space) 165 330 per sqm of rentable area (i.e., one lot per 50 100 pyung). For additional parking and for buildings that exclude parking in the rentable area, a monthly market rate is charged. The average rate for Grade A offices is KRW 200,000-250,000 per month for the central business district and KRW 150,000 200,000 per month for Gangnam & Yeouido business districts. Other Occupancy Costs The typical range of operating expenses covered by the service charge includes: Insurance premiums Air conditioning/ventilation Building supervision Fire protection Pest control Repairs and maintenance Administration/management fee TRANSACTION COSTS Agency Fees Agency fees shown below are payable to each broker, whether a broker represents the landlord or represents the tenant, and when separate brokers represent each party. Whoever hires the broker pays the fee shown below. New Lease: The tenant typically pays one month s net rent excluding the security deposit and maintenance fee. Lease Renewal: The tenant pays one-half month s rent. Lease Termination: Tenants do not hire agents to negotiate termination. Sublease: The sublessor pays one month s rent, but sublease scenarios are very rare in the Seoul office market. South Korea Page 292 of 309

Legal Fees Most of tenants prepare their legal counsel for contractual activities (Legal due diligence). OTHER LEASE PROVISIONS Laws and Practices There are no specific laws governing office leasing in Seoul. Standard Lease There are no set standard leases in Seoul. Office lease agreements and their provisions are contingent upon the building and its landlord. Right to Sublet Lease agreements generally prohibit tenants any rights of sub-letting or assignment, although subleasing is negotiable. Some landlords allow subleasing only to tenant s affiliated companies. Option to Expand & Right of First Refusal Late Delivery by Landlord Negotiable. Late delivery penalty is according to the lease contract. Commonly, a landlord that fails to return the security deposit to tenant on time, pays the tenant an additional 18 20% of the deposit. Holdover by Tenant The lease normally addresses holdover penalties, which are difficult to negotiate. The tenant typically pays double rent during the holdover period. Signage and Naming of Building Building signage and naming rights are typically negotiable only if a tenant occupies a large percentage of the building. OFFICE LEASING MARKET Transparency Since most foreign real estate investment has been in the office sector, data availability from real estate consulting firms is improving. Information on comparable recent transactions in Seoul is generally available. Building Classification Grade A: High-quality space, lobby, restrooms mechanical systems, finishes, etc. Grade B: Standard quality. PURCHASE AND SALES Market Practices Office buildings are usually owned by institutions (either for their own occupancy or for investment), large corporations (who may or may not occupy the buildings they own), or smaller investors with deep pockets (usually for their own occupancy). South Korea Page 293 of 309

Agency Fees Buyers and sellers use either an agent (advisor), a brokerage firm (broker), or neither, but generally not both. An agent acts on behalf of the client, either the buyer or the seller but not both parties; whereas a brokerage firm is the intermediary between the seller and the buyer. In the case of brokerage firms, both the buyer and seller pay the advisory fee, at a pre-determined percentage of the sales price. This fee depends on the brokerage and type of building sold, and is negotiable. The seller pays 0.1 1.3% (negotiable) to seller representatives or brokers. The buyer pays 0.5 1.5% (negotiable) to buyer representatives or brokers. Other Transaction Costs Buyers and sellers may also pay professional advisory fees for legal due diligence, physical due diligence, accounting due diligence, etc.). The seller pays a capital gains tax of up to 64% if it is sold by an individual or a corporation or an institution. An exception to this tax applies to REITS. The buyer pays acquisition tax. This is approximately 2% of the sales value. It includes a Local Education Tax and a Special Tax for Rural Development. Registration Tax: Applies to sales, approximately 2% of the sales value in addition to Acquisition Tax. Mandatory bond purchase: (5% of the property price, and 2% of the land price). Property price here refers to property value other than the value of the land. However, the buyer generally does not need these bonds, and generally resells them in the market at a discount (known as a pre-mature resale) of approximately 13%. Information contained herein, including projections, has been obtained from sources believed to be 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 confirm independently its accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of the CBRE Global Chief Economist. South Korea Page 294 of 309

Taiwan What s Typical? Term 3 5 years Breaks Negotiable, but not common Renewals Negotiable, usually requires 3 6 months prior notice Measurement Ping = 3.306 sqm Rent basis Net Free rent 0 6 months Escalation Negotiable Security 0 4 months Tenant s broker Tenant and/or landlord pay Fit-out Tenant pays Regulation Civil code covers most legal terms of lease Right to sublet Usually prohibited Transparency Limited Feng shui May affect choice of premises CBRE Offices Taipei +886 2 7706 9500 For More Information About CBRE Taiwan http://www.cbre.com.tw/sitepages/default.aspx About CBRE Taiwan Research http://www.cbre.com.tw/research/sitepag es/marketreports.aspx For Local Market Reports http://gkc3.cbre.com/search/search.aspx Contact Man Chan Associate Director, Office Services +886 2 7706 9513 man.chan@cbre.com Taiwan Page 295 of 309

LEASE LENGTH Term A typical lease term for companies of all sizes is from three to five years. Shorter or longer lengths are possible. Termination or Break An option to terminate is generally subject to a 3 6 month notice and 0 6 month penalty payment. Renewal The right to renew is negotiable, and not covered in the civil code. Agreements that include an option to renew generally require 3 6 months from the tenant, prior to lease expiration. SPACE MEASUREMENT Space Measurement Ping, which equals 35.58 sq. ft. and 3.306 sqm, is the unit of measurement in Taiwan. Definitions Gross Area: The contract area for office building leasing and acquisition in Taiwan is gross area, which is the total area measured from (and within perimeter of) the outside of external walls. It includes basement, attachment, lift lobbies, toilets, staircases and all mechanical areas. With subdivided floors, common areas are allocated on a pro-rata basis. Net Area: This is the area within a tenant s space, which includes columns and balconies, if any. It excludes toilets, public corridors and lobby areas. Efficiency A typical ratio of net area to gross area is generally 60 70%. In a Grade A building in Taipei, the ratio is typically 60 65%. In newer buildings it can be below 60%. OCCUPANCY COSTS Rent Rent Quoted: Rent is usually quoted in New Taiwan Dollars (TWD) per ping per month, on a net basis, i.e., excluding service charges and taxes. Rent Payable: Rent is normally payable monthly in advance. Free Rent: Free rent is negotiable. One to three months free rent is typical for all grades of office buildings. Shorter or longer free rent periods are possible, depending on the size of the occupied area. Rent Escalation: A typical three-year lease provides for rent escalation in the second or third year. A typical five-year lease provides for escalation from the third year. The escalation ranges from two to five percent of rent, depending on lease terms, and is addressed in the lease agreement. Service Charges Tenants pay management charges, and the cost of repairing occupied areas. Taxes Value Added Tax (VAT): It is common for tenants to pay VAT. Generally, 5% VAT is levied on rental payments paid to institutional landlords. 10% VAT is levied on rents paid to individual landlords. Property Taxes are included in the rent, i.e., the landlord pays them. If taxes rise, the landlord, not the tenant normally pays increases. Utilities Water and electricity charges vary according to usage recorded in meters. Tenants share utility charges for common areas on a pro-rata basis. Taiwan Page 296 of 309

Fit-Out Landlord Work: The landlord generally provides suspended ceilings, lighting, air conditioning and finished common areas including restrooms, building lobby and floor lobbies. Fit-out Costs: The tenant pays for all other improvements, which, in Taipei, generally cost at least 35,000 TWD per ping (net). This includes construction but does not include furniture, telecom or design fees. Restoration The tenant is usually responsible for restoring space upon expiration to its original condition. The restoration clause is stated in the lease agreement, whereas normal wear and tear is negotiable. Security Deposits and Guarantees Landlords generally require a security deposit of three to four months rent. Car Parking Car parking is normally not included in leases. Tenants rent parking spaces separately. TRANSACTION COSTS Agency Fees Most landlords in Taiwan do not retain agents. The agent that represents the tenant normally receives the leasing fees shown below. New Lease: The agent for the tenant normally receives one-half to one month s rent from the landlord plus one-half to one month s rent from the tenant, depending on the size and location of leased space. For properties outside of Taipei City, a minimum service fee is generally required. A few landlords do not pay agency fees. If separate brokers represent the landlord and tenant, the tenant s agent receives one-half to one month s rent from the tenant only and no fee from the landlord. Lease Renewal: The tenant typically pays one-half to one month s rent or 15% of total savings, whichever is higher. Sublease: The sublessor pays one month s rent. When a broker represents the sublandlord (sublessor), the sublandlord pays one month s rent to its broker. The subtenant must follow the new lease rule, which means paying one-half to one month s rent to its broker. Tenants are often prohibited from subleasing space to third parties other than their affiliate companies. Legal Fees The landlord pays its attorney for lease preparation. The tenant pays its attorney. Other Transaction Costs A notary fee may be required by the landlord. Landlords and tenants often share this fee equally. OTHER LEASE PROVISIONS Laws and Practices Taiwan s Civil Code protects the landlord and the tenant. For example, Clause 422 states that a lease of property for a period exceeding one year shall be executed in writing. If it is not executed in writing, it is deemed to have been made for an indefinite period. Clause 351 states that if a buyer knew of a defect at the time of concluding a contract, seller is not bound to warrant such defect, unless otherwise provided by contract. Standard Lease Standard leases are not commonly used in the office property sector. Right to Sublet Most leasing covenants prohibit subleasing. If the agreement does not allow subletting, the tenant should negotiate a provision that allows the tenant to sublet to an affiliate company or a subsidiary. Taiwan Page 297 of 309

Option to Expand & Right of First Refusal Late Delivery by Landlord This is negotiable. This is rarely addressed in the lease. The commencement date is typically subject to availability. Holdover by Tenant Holdover is rare but the period of holdover and premium rent are negotiable in the lease. Signage and Naming of Building Signage and naming rights are rare but may be available for anchor tenants. OFFICE LEASING MARKET Market Practices Geomancy (Feng Shui): Tenants commonly consult with a geomantic professional regarding property location. Some tenants cancel deals simply because the feng shui professional determines that the property location will bring bad luck to the tenant s business. Transparency Recent comparables that identify tenants, areas, rents and incentives are generally available with real estate consulting firms. Building Classification CBRE and other real estate companies each use their own classification systems. CBRE s classification of Taipei office buildings follows a structured grading system that considers a building s location, quality, leasing conditions, and building management. Under these four categories, a total of ten detailed criteria are used to grade an office building. A maximum of five points is assigned for each criterion, according to the building s condition, summing to a maximum overall score of 50 points. Grade A: Buildings that receive 36 points or higher are classified as Grade A office buildings. These buildings normally have modern facilities with high-quality finishes, flexible layout, large floor plates, spacious lobbies and circulation areas, effective central air conditioning, good lift services zoned for passengers and goods deliveries, and good management and parking facilities. They also normally have raised-floor, emergency backup power, a dedicated property management team, and 24-hour cooling/chilling water supply. Grade B: Those receiving 24 points or higher and less than 36 points are classified as Grade B office buildings. The Taipei Quality Office Market includes Grade A and Grade B buildings. PURCHASE AND SALES Market Practices Foreign investors are not allowed to invest in certain property types: forest land; land for fishery; hunting land; salt industry land; mining industry land; land for water sources; boarder land or military land. Agency Fees The buyer normally pays 1 2% of the total transaction value of the property, but this is negotiable. The seller normally pays more of the agency fee than the buyer, typically 1.5 4% of the total transaction value of the property, but this is negotiable. Assuming the broker represents the seller and no broker represents the buyer, the broker can collect fees from both sides. If different brokers represent the buyer and seller, then each broker collects fees from its own client, within the range stated above. Taiwan Page 298 of 309

Other Transaction Costs Land Value Incremental Tax: This is payable by the seller on 20% to 40% of the unearned increase in the value of land. The unearned increment is the difference between the officially assessed value at the time of sale and its assessed value at the time of purchase. Value Added Tax (VAT), is paid by the seller and levied at 5% of the transaction price of the building. (The land price is deducted from the total sales Price.) Stamp Duty: This is levied at 0.1% of assessed values of land and building and usually payable by the buyer. Information contained herein, including projections, has been obtained from sources believed to be 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 confirm independently its accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of the CBRE Global Chief Economist. Taiwan Page 299 of 309

Thailand What s Typical? Term 3 years typical Breaks Rare Renewals Renewal options are in most leases Rent basis Gross Free rent 1 2 months for fit-out Escalation No escalation during 3-year term Security 3 months, returned without interest Tenant s broker Landlord pays Fit-out Tenant pays Right to sublet Rare Transparency High CBRE Offices Bangkok +66 2 654 1111 Phuket +66 76 239 967 For More Information About CBRE Thailand http://www.cbre.co.th About CBRE Thailand Research http://www.cbre.co.th/en/researchcentre. asp For Local Market Reports http://gkc3.cbre.com/search/search.aspx Contact James Pitchon Executive Director, Research and Consulting +66 2 654 1111 ext. 205 james.pitchon@cbre.co.th Nithipat Tongpun Executive Director, Office Services +66 2 654 1111 ext. 218 nithipat.tongpun@cbre.co.th Thailand Page 300 of 309

LEASE LENGTH Term Lease terms in Bangkok are for three years, generally with options to renew. Longer leases are rare. Termination or Break Not normally available. Renewal Options to renew are generally available for one or two additional terms of three years. Rent for the renewed term is negotiable and not subject to arbitration. SPACE MEASUREMENT Space Measurement Lettable (rentable) area Definitions The terms lettable and rentable are used interchangeably, and refer to the space that a tenant occupies, including columns within the tenant s space, measured in square meters. The lettable area excludes air-handling units, common areas, primary circulation (space from elevators to tenant s space) and areas occupied by elevators and shafts. Efficiency A typical ratio of carpetable area to lettable area in a Class A building in Bangkok is 95 97%. OCCUPANCY COSTS Rent Gross rent: Office rent is usually on a gross basis in Baht (THB) per square meter per month. Operating costs, including building staff, building security and management fees, are included in the gross rent. Air conditioning during normal business hours may be included if a building has a central chiller system. Rent-Free Period: A free rent period to cover the time spent fitting out is typically one to two months, and depends on the space size and rental amount paid. Rent Escalation: The rent is fixed for the three-year lease term. Costs Normally Included in Rent: (1) Household Tax: Normally the landlord pays a household tax of 12.5% per year of rent. The tenant pays the tax in some buildings. (2) Parking: Normally tenants receive one space free of charge per 100 sqm leased. (3) VAT: The tenant pays 7% VAT only on the portion of the gross rent that is allocated to services or equipment rental. No VAT is paid on the remainder of the rental. Operating Costs Operating costs are included in the rent. Taxes The tenant deducts a withholding tax of 5% of the rent and 3% of the service from the rental stated in the lease agreement, and pays it to the government revenue department. Thailand Page 301 of 309

Utilities The tenant pays for electricity. The tenant pays the landlord for electricity based on consumption measured by a meter. The landlord charges a flat rate of THB 4.5 5.0 per kilowatt-hour, which is usually higher than the standard rate charged by the utility company. Air Conditioning: If a building uses a water-cooled package system, the tenant normally pays for electricity consumed by its package unit. If a building has a central chiller system, air conditioning during normal office hours (8:00am to 6:00pm on weekdays) is included in the rent. There are additional charges for the supply of air conditioning outside normal office hours. Water: The tenant pays the landlord for water supply consumed in the tenant s premises. Charges are based on a meter at THB 20 per cubic meter. Telecommunications: The landlord allows the tenant to apply directly to telephone providers, but the tenant pays a non-refundable installation charge to the landlord. Emergency Power: A one-time charge may apply for connection to an emergency generator. Additional Security: Tenant pays for additional security if needed. Fit-Out Landlord Work: Landlords normally hand over the premises with a suspended ceiling, air conditioning system, sprinkler system, ducting and lighting, plus a finished floor of vinyl tile or finished concrete. Tenant Work: The tenant pays the fit-out costs. Landlord approval is normally required. Fit-out Costs: Total fit-out costs for Class A or Prime buildings in major cities normally range from THB 15,000 to 20,000 per sqm including construction, furniture, wiring, design fees, etc. Restoration At lease-end, the tenant usually must restore the premises to its original handover condition. If the landlord decides not to require restoration, fixtures remain and belong to the landlord. Security Deposits and Guarantees The deposit is three months gross rental; non-interest-bearing and refundable on lease expiration. Car Parking In Bangkok, tenants normally receive one space free of charge per 100 sqm leased. Almost every office building in Bangkok meets the Bangkok Metropolitan Authority s minimum specification of one parking space for every 60 sqm of rentable area. Other Occupancy Costs No other significant occupancy costs apply. TRANSACTION COSTS General Transaction Costs The tenant pays stamp duty at 0.001% of the rental payable over the lease term. Leases over three years must be registered at a cost of 1.1% the rental paid over the lease term. Agency Fees New Lease: The landlord pays one month s rent. If more than one broker is involved, the landlord generally pays the agency fees, which are split between brokers, normally as agreed upon with the landlord. Lease Renewal: If represented by an agent, the tenant pays the agent half of one month s rent or on a performance basis, subject to a minimum amount. Landlords negotiate renewals themselves or use an agent and normally pay their agents half a month s rent. Sublease: The sublandlord pays one month s rent. If more than one broker is involved, the sub-landlord generally still pays any agency fees, and the brokers split the fee, normally as agreed with the sublandlord. Normally, subletting and assignment to unrelated companies are not permitted. Legal Fees Each party bears their own legal fees. Thailand Page 302 of 309

Other Transaction Costs If the lease term is more than three years, the tenant must register the lease at the Land Department and pay registration fees (1.1% of the total rent over the lease term). OTHER LEASE PROVISIONS Laws and Practices Leases are written in English or Thai and are governed by Thai law. The final contract is normally executed after a letter of intent between the tenant and the landlord has been signed. Standard Lease Each landlord uses its own format of tenancy agreement. Right to Sublet Subletting is rare. Landlords normally only allow the tenant to sublease or assign its space to subsidiary companies. Option to Expand & Right of First Refusal Late Delivery by Landlord Options to expand are occasionally negotiable. The right of first refusal to expand is negotiable for large tenants. Normally no penalty applies. Additional free rent may be negotiated. Holdover by Tenant The tenant has no right to holdover. Landlords charge a penalty rate for holdover. Signage and Naming of Building Normally a landlord allows only anchor tenants to install signage on the exterior of a building. OFFICE LEASING MARKET Transparency For Bangkok, comparables that identify tenants, square meters, rents, and incentives for recent transactions are not publicly available but brokers can provide such information. Building Classification CBRE considers a building in Thailand to be Grade A if it has: An easily divisible column-free floor plate with a regular shape and no structural encumbrances. An air-conditioning system with a central chiller and variable air volume, rather than a constant air volume from a water-cooled system. Separate 24-hour air conditioning supply for tenants computer rooms. Lifts with low wait time. Lifts should be allocated to different floor zones. A separate service lift with its own service area should also be provided. The common areas, particularly the main entrance and floor lobbies, should have high-quality design, decoration, and fittings. Interior ceiling heights should be at least 2.7 m. Professional building management. Car parking areas should have smooth and efficient entry and exit routes. Grade B: Office buildings of lower quality are classified as Grade B. Thailand Page 303 of 309

PURCHASE AND SALES Agency Fees The seller pays all agency fees: 3% of the sales price. Very rarely a broker represents the buyer. However, if two or more agents are involved, the seller determines the fee split. Other Transaction Costs Vendor pays 2% transfer fee, 0.5% stamp duty, 3.3% special business tax, and corporate or individual income tax. Information contained herein, including projections, has been obtained from sources believed to be 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 confirm independently its accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of the CBRE Global Chief Economist. Thailand Page 304 of 309

Vietnam What s Typical? Term Breaks Renewals Rent basis Currency Free rent Escalation Security Tenant s broker Fit-out Right to sublet Transparency 3 5 years. Longer for tenants requiring large space Rare yet negotiable Negotiable Net + service charge Must be denominated in VND Usually 1 month per year of lease Fixed if lease is less than 3 years, but leases increasingly include escalation to address forex concerns 3 months Landlord pays, with fee underwritten by the tenant Landlord delivers bare shell. Tenant pays fit-out, typically within rent-free fit out period Negotiable Disclosure only with consent of parties CBRE Offices Ho Chi Minh City +848 3 824 6125 Hanoi +844 220 0220 Danang +84 511 2222 111 For More Information About CBRE Vietnam http://www.cbrevietnam.com/ About CBRE Vietnam Research http://www.cbrevietnam.com/?page_id=1 726 For Local Market Reports http://gkc3.cbre.com/search/search.aspx Contact Adam Bury Senior Manager of Research and Consulting +84 8 3824 6125 adam.bury@cbre.com Vietnam Page 305 of 309

LEASE LENGTH Term In Vietnam, lease terms typically run for three to five years. Anchor or international tenants looking for longer leases can negotiate terms of five to ten years. In Hanoi, longer leases are negotiated in return for concessions such as discounts or rent-free periods. Termination or Break Break options are rare, but can be negotiated. Renewal Renewal options are negotiable, often with caps and collars in place. A collar is the opposite of a cap, i.e., the minimum rental rate. SPACE MEASUREMENT Space Measurement Space is measured in square meters. Definitions CBRE uses the following definitions in Vietnam: Gross Floor Area (GFA): All areas contained within the external walls at each floor level, excluding mechanical and electrical service rooms, lifts, and staircases. Net Leasable Area (NLA): The space excluding all common areas such as corridors, stairs, lift lobbies, toilets and mechanical and electrical service rooms, and generally including columns. Efficiency The ratio of carpetable area to NLA is 95%. The ratio of NLA to GFA is generally about 80 85%, although it can be as low as 60%. Vietnam Page 306 of 309

OCCUPANCY COSTS Rent Rent Quoted Rents are frequently quoted in USD per square meter per month. Currency for Payment The tenant pays rent in VND. By law, the landlord must have a VND bank account. If the tenant pays in USD, the bank converts the payment to VND before crediting the landlord. As the VND to USD exchange rate slid in 2009 2011, tenants with USD denominated leases bore the hidden cost because rents quoted in USD required larger payments in VND as the dong devalued. New leases are almost entirely being denominated and signed in VND, due to increasing enforcement of government regulations. With persistent devaluation pressure on the VND, both landlords and tenants try to hedge their risk. Leases executed in VND with fixed annual increases allow some compensation for the anticipated devaluation of the currency. Tying a VND lease to the USD/VND exchange rate does not comply with the regulations; therefore landlords insert fixed annual rental rate increases to compensate for expected currency devaluation. Rent Payable Rent is usually due quarterly, including service charges, in advance. The VAT rate of 10% is not included, but due at the same time. Rent-Free Periods The length of rent-free periods is negotiable. Typically, rent-free periods are obtained on a case-by-case basis based on building occupancy, covenant strength, the lease term, and the headline rent. Rent-free periods usually cover the fit-out period, although service charges and 10% VAT still apply during this period. With current market conditions, landlords are increasingly competitive on incentives including rent free periods. Rent Review Leases of longer than three years generally stipulate that parties will renegotiate rental rates after the initial three year period. Parties manage the risk for long-term leases by agreeing to rent revisions within a pre-determined range, usually 10 15% of the base rental rate. Service Charge The service charge covers management, 24-hour security of common areas, cleaning, lighting, emergency power, maintenance of plant and machinery, pest control in common areas, exterior window cleaning, garbage removal, lift services and electricity for operating the air conditioning system during normal business hours. The tenant pays a service charge plus 10% VAT in addition to the rent, based on the area leased, either on a GFA or NLA basis. The charge varies from building to building, depending upon services provided and the building s quality. Typical service charges are: Grade A: USD 5 8 per square meter per month. Grade B: USD 4 6 per square meter per month. Grade C: USD 3 4 per square meter per month. Taxes VAT tax of 10% is due on both the rental rate and the service charge. VAT is paid to the landlord. Utilities Electricity: Usually in Grade A and B buildings, the electricity (excluding air conditioning) is sub-metered and paid to the landlord. Air conditioning during normal business hours is included in the service charge. In some cases, electricity can be included in the service charge. Water: The fee for water in common areas is included in the service charge. The tenant pays for water within the tenant s space. Tap water is not potable in Vietnam, so the tenant must arrange and pay for drinking water. Telecommunications: The tenant pays for telephone and internet service directly to the service provider. Vietnam Page 307 of 309

Fit-Out Standard handover is bare-shell, i.e., concrete/screed floor with a finished ceiling. The tenant normally pays for all tenant improvements, such as reception, partitioning, internal doors, wiring, cabling, furniture, flooring, and ceiling modification. IT Hardware and telephone systems are the responsibility of the tenant. Fit-out costs range from USD 150 600/sqm. Restoration Tenants generally must restore the property to its original condition at the end of the lease term or pay its cost to the landlord, unless otherwise negotiated. Security Deposits and Guarantees The tenant pays a deposit based on the area leased, either on a GFA or NLA basis. A three-month security deposit is normally payable upon signing the lease. At lease expiration, the landlord returns the security deposit in the same currency which was received, without interest. If parties extend the lease for another term, the security deposit is usually adjusted to the new market rate. Car Parking Tenants typically pay extra for car parking. In HCMC, the rate is approximately USD 200 + 10% VAT per car parking space per month for Grade A buildings. In HCMC, motorbike parking is generally USD 10 20 + 10% VAT per bike per month. Depending on market conditions, landlords are increasingly competitive on incentives including parking. In Hanoi, the fee for car parking ranges USD 80 150 + 10% VAT per parking space per month, while motorbike parking is typically USD 5 8 + 10% VAT per bike per month. Other Occupancy Costs After-hours air conditioning, internal cleaning, and insurance. TRANSACTION COSTS Agency Fees New Leases In HCMC, landlords pay a fee equivalent to one month for a three-year lease, 1.5 months for a five-year lease, or 2.75% of the gross rent. In Hanoi, landlords of Grade A buildings will pay an agency fee equivalent to 1 1.5 month s rental. The fee is less in Grade B & C buildings. When an agent represents the tenant, the tenant pays an amount equivalent to one month s rental across all grades. In some cases landlords will also pay some or all of the tenant s agent s fee. Lease Renewals The tenant generally pay brokerage fees for lease renewals, but this is negotiable. Subleases The head lessee would pay brokerage fees for subleasing. Legal Fees Both parties share legal fees. Other Transaction Costs Both parties share stamp duty, and other incidentals involved in the preparation and execution of the lease. OTHER LEASE PROVISIONS Laws and Practices Commercial leases are governed by the 2005 Civil Code and the 2006 Law on Real Estate Business. Lease terms and conditions are contained within the lease contract. Landlord or agent provides the draft lease agreement, usually containing standard terms and conditions. Lease durations over six months are required to be notarised. Vietnam Page 308 of 309

Standard Lease Landlord or agent provides the draft lease agreement, usually containing standard terms and conditions. Right to Sublet Subletting is done on a case-by-case basis, but requires the landlord s approval if the business license does not grant a right to sublet. Option to Expand & Right of First Refusal Option to expand is negotiable. Tenants can negotiate in their lease agreement for the right of first refusal to lease additional space on the same or contiguous floor(s) on the same terms and conditions contained in a bona fide third-party offer to lease, with 15 days to match any third-party offer. Usually negotiated on a case-by-case basis. Late Delivery by Landlord Late delivery is negotiable and should be addressed in the lease, with a subsequent penalty. Holdover by Tenant Holdover by tenant is negotiable and should be addressed in the lease. Signage and Naming of Building Depending on market conditions, landlords are increasingly competitive on incentives including discounted signage. In Hanoi signage is rare, but may become more competitive as supply increases. OFFICE LEASING MARKET Transparency Comparables are generally available for recent transactions in Ho Chi Minh City and Hanoi. Terms and conditions of lease agreements are confidential between the landlord, their agents, and the tenant and are not disclosed to another party without the prior consent of either party. Therefore, landlords will provide the basic details of comparable leases with rents and lease lengths. Some detail on incentives may be provided. Building Classification Although no formal classification system exists, these grades are generally understood: Grade A Buildings: High-rise buildings, located within the CBD, column-free floor plates of over 1000 sqm, ceiling heights of 2.7 m, professional management, M&E design, efficiency, lift lobby, access. Grade B Buildings: Generally 75% of Grade A amenities, as well as being located in the CBD or periphery with at least seven stories and floor plates of 500 1000 sqm. Grade C Buildings: Due to the immature nature of Vietnam s office market, Grade C buildings are classified as buildings not meeting Grade A or B status, but having 50% of the amenities of Grade B buildings, with minimum floor plates of 150 sqm. PURCHASE AND SALES Market Practices Investment sales and purchase of office buildings is limited in Vietnam, with very few transactions in the past five years. However, investors are becoming more comfortable with the business climate in Vietnam and investment transactions are expected to increase in the next eight quarters. Agency Fees There are no specific standard and norm on agency fees for investment sales and purchase. Information contained herein, including projections, has been obtained from sources believed to be 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 confirm independently its accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of the CBRE Global Chief Economist. Vietnam Page 309 of 309

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