New York Quarterly 2Q2018

New York Capital MarketsMarket Overview

New York Quarterly

2Q2018

MANHATTAN CAPITAL MARKETS

2

New York

Quarterly2Q2018

Market Snapshot

- Manhattan Capital Markets

- Manhattan Leasing Market


3

New York

Quarterly2Q2018

2Q2018 OverviewVALUES

MT Class A Office$931 PSF (23%)

Overall$911 PSF 6%

Multifamily$713 PSF 7%

Land$572 PBSF (13%)

Value re-setting as market cycles from peak levels.

CAP RATES

MT Class A Office4.5%-5.5%

Class B Office4.0%-5.0%

Multifamily4.25%-5.25%

Retail5.5%-6.5%

RENTS

Midtown$80.57 (1%)

Midtown South$74.21

12%

Downtown$63.02 PSF (1%)

Average Rents @ $74.19up 1.5% Y-O-Y

AVAILABILITY

Midtown10.2% -0.6pp

Midtown South8.8%

(+0.2pp)

Downtown12.7% (+1.6pp)

Availability Rate @ 10.2% up 0.1 pp Y-O-Y

SALES VOLUME

2Q2018 2Q2017

$15.7billon

$9.7billion

116transactions

103 transactions

The 5 largest deals of the year account for 40% of activity.

FOREIGN CAPITAL

(30%)$3.8

billion

24% of all investment

dollars

5% 19

deals 16% of alltotal deals

Offshore investors are becoming more active in smaller deal market.


4

New York

Quarterly2Q2018

2Q2018 Closed Manhattan Investment Sales ActivityTotal Size

Product Type

# of Deals

% of Deals

Square Feet

Units / Keys

TotalDollars

% of Dollars

Average Cap Rate

Avg / SF or Unit or Key

Multifamily 44 38% 3,455,212 3,472 $2,462,347,167 16% 4.25%-5.25% $713/$709,375

Office* 23 20% 7,353,137 - $8,017,496,510 51% 4.25%-5.25% $913*

Land 25 22% 3,146,250 - $1,800,461,351 11% - $572

Retail 16 14% 598,038 - $1,228,548,030 8% 5.50%-6.50% $2,054

Hotel 5 4% 932,888 1,618 $1,821,568,079 12% 5.75%-6.50% $1,953/$1,125,815

Other 3 2% - - $336,000,000 2% - -

TOTAL* 116 100% 15,485,526 $15,666,421,137 100% - $911 *PPSF excludes the $2,000 PSF sale of 75 Ninth Avenue. When including 75 Ninth Avenue the Office Avg PSF is $1090 and Total Avg PSF is $995

Under Contract 30 $5,484,172,896

Closed & Under Contract 146 $21,150,594,033

2Q2017

Product Type # of Deals Total DollarsMultifamily 38 $982,117,328

Office 26 $7,304,993,437

Retail 18 $616,534,961

Land 16 $445,704,100

Hotel 2 $125,000,000

Other 3 $154,950,000

Total Closed 103 $9,629,299,826

Under Contract 15 $2,485,163,083Closed & Under Contract 118 $12,114,462,909


5

New York

Quarterly2Q2018

2Q2018 Manhattan Multifamily Investment Sales ActivityBy Submarket

Midtown Midtown South Downtown Uptown* Total

Total # of Deals 13 11 3 17 44

Total Units 1,620 385 268 1,199 3,472

Total Sq Ft 1,833,528 341,157 250,199 1,030,328 3,455,212

Total Dollar Volume $1,445,387,500 $387,885,048 $196,400,000 $432,674,619 $2,462,347,167

Average Deal Size $111,183,654 $35,262,277 $65,466,667 $25,451,448 $55,962,435

Avg Price Per Unit $892,325 $1,006,840 $732,836 $361,343 $709,375

Avg Price PSF $788 $1,137 $785 $420 $713

Avg Cap Rate 4.75%-5.25% 4.25%-4.75% 4.75%-5.25% 4.5%-5.0% 4.25%-5.25%

*Uptown properties are north of 125th Street

Midtown Midtown South Downtown Uptown* Total


Total Sq Ft 421,010 1,828,496 628,618 268,126 3,146,250

Total Dollar Volume $298,788,851 $1,038,200,000 $380,722,500 $82,750,000 $1,800,461,351

Avg Deal Size $42,684,122 $103,820,000 $95,180,625 $20,687,500 $72,018,454

Avg Price PSF $710 $568 $606 $309 $572

2Q2018 Manhattan Land/Redevelopment Investment Sales ActivityBy Submarket


6

New York

Quarterly2Q2018

2Q2018 Manhattan Office Investment Sales Activity

Midtown Class A Midtown Class B Midtown South* Downtown Uptown Total*

Total # of Deals 7 7 8 1 0 23

Total Sq Ft 3,877,343 590,592 2,872,874 12,328 - 7,353,137

Total Dollar Volume $3,608,864,466 $456,832,044 $3,941,400,000 $10,400,000 - $8,017,496,510

Avg Price PSF* $931 $774 $921 $844 - $913

Avg Deal Size $515,552,066 $65,261,721 $492,675,000 $10,400,000 - $348,586,805

Avg Cap Rate 4.5%-5.5% 4.0%-5.0% 4.0%-5.0% 4.25%-4.75% - 4.0%-5.5%

*PPSF excludes 75 Ninth Avenue. Including 75 Ninth Ave the MTS weighted avg price psf is $1,372 and the overall weighted avg price psf is $1,090.

By Submarket

2Q2018 Manhattan Retail Investment Sales Activity

Midtown Midtown South Downtown Uptown Total


Total Sq Ft 166,947 131,113 287,228 12,750 598,038

Total Dollar Volume $471,875,000 $403,973,030 $342,700,000 $10,000,000 $1,228,548,030

Avg Price PSF $2,826 $3,081 $1,193 $784 $2,054

Avg Deal Size $94,375,000 $44,885,892 $342,700,000 $10,000,000 $76,784,252

Avg Cap Rate 5.5%-6.0% 5.5%-6.0% 5.5%-6.0% 6.0%-6.5% 5.5%-6.5%

By Submarket


7

New York

Quarterly2Q2018

New York Market Perspective

Year Expected Delivery (SF)

Additions to Supply (%) Pre-Leased SF Net New Space

Available (SF)

2018 6,885,991 1.3% 3,000,066 3,885,925

2019 5,117,938 1.0% 3,592,909 1,525,029

2020 782,000 0.1% 0 782,000

2021 0 0.0% 0 0

SUBTOTAL PRE-2021 12,785,929 2.6% 6,592,975 6,192,954

2022 & Beyond 20,051,926 3.9% 1,559,814 18,492,112

NYC is witnessing a much needed construction boom to modernize its office stock. Despite the new projects under construction, the additions to supply equal less than 7% of the total market.

Pipeline of New Office Building Construction by Year

Source: Colliers International Research

*These projects are more speculative and are unlikely to be built without significant pre-leasing commitments.


8

New York

Quarterly2Q2018

Sales Activity Price PSF

US

$ bi

llion

s

Annual Investment Sales Activity

58 83 165 170 259 346 191 66 136 245 275 223 442 589 502 234 116

$8.5 $10 $15 $21 $35 $48.5 $19.6 $3.5 $12.4 $25 $25 $30.2 $39.8 $60.3 $42.9 $24 $15.7

# of Deals

Volume ($B)

# of Class A Transactions / # of Partial Interest Transactions

Total

Midtown and Midtown South

Downtown

Weighted Average Midtown Class A Office Price PSF


$443(15)

$475(17)

$434(14)

$549(15)

$749(28)

$875(41)

$941(15)

$335(2)

$590(10)

$836(7)

$743(7)

$1,083(15)

$1,344(6)

$1,096(21)/8

$1,124(14)/7

$1,122(13)/3

$931(7)/1

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$0

$10

$20

$30

$40

$50

$60

$70

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 YTD


9

New York

Quarterly2Q2018

REIT6%

Foreign24%

Private Capital52%

User18%

REIT 11%

Foreign 45%

Private Capital 44%

Based on 2017 Total Sales of $24 Billion

Several large deals were transacted in the first half of 2018. Institutional capital has been among the most active participants in the market. Foreign capital continues to be active, though on a smaller deal scale than recent historical trends.

Based on 2016 Total Sales of$42.9 Billion

Based on 2018 YTD Sales of $15.7 Billion

Based on 2015 Total Sales of$60.3 Billion

Annual Investment Sales by Investor Profile

REIT3%

User 5%

Foreign40%

Private Capital46%

Pension Fund6%

Source: Colliers New York Capital Markets

REIT12%

Foreign45%

Private Capital40.8%

User1%


10

New York

Quarterly2Q2018

$1.5 B$1.4 B

$470 M

$200 M$80 M $80 M $70 M

$0.0

$0.5

$1.0

$1.5

$2.0

Germany Canada France Netherlands Ireland Israel Sweden

Billi

ons

Total Dollars Invested

19 Transactions = 16% of Total Transactions

$3.8B = 24% of $ Invested

Foreign Capital Inflows –2018


Deals # 4 6 3 1 1 2 2


11

New York

Quarterly2Q2018

Midtown Class A Cap Rates vs. Rent Growth & 10-Year Treasuries

Rent concessions and tepid rent growth, coupled with an increase in interest rates, have resulted in a rising cap rate environment.

7.58%7.34%

6.34%

4.93%4.64%

4.04%3.55%

4.45%

5.85%5.24%

4.40% 4.60%4.30%

3.88% 3.79%4.00%

4.50% 4.50%5.40%5.10%

3.40%

4.70%

3.90%

5.10%4.90%

3.90% 3.70%3.30%

2.90%

1.50%

2.10%2.50%

2.19%2.45% 2.50%

2.85%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

8.00%

9.00%

10.00%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

8.00%

9.00%

10.00%

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Cap Rate 10-Yr Treasury

Note: 10-Yr Treasury rates are as of year-end.

Y-O-Y rent growth

11% (7%) 7% 4% 18% 29% 1% (27%) 1% 8% 3% 4% 2% 3% 2% 1% 1.5%


Weighted Average Cap Rates, 2001 – 2018


12

New York

Quarterly2Q2018

Midtown Class B Historical Office Sales

$314

$541$603

$473 $480

$379

$577 $567 $581

$646

$774

$982

$727$774

$0

$200

$400

$600

$800

$1,000

$1,200

$0.0

$1.0

$2.0

$3.0

$4.0

$5.0

$6.0

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Billi

ons

Volume Average Price PSF

# of Deals 11 31 46 13 7 16 20 24 19 27 32 32 13 7

Total SF 2,417,766 5,821,915 8,026,600 2,777,803 468,671 3,361,719 5,478,749 6,382,912 6,499,268 8,150,555 5,878,401 4,023,191 2,308,336 590,592

Price PSFSales Activity


13

New York

Quarterly2Q2018

Midtown South Historical Office Sales

$406 $415

$591$560

$379 $374

$481

$632

$742$790 $796

$837

$1,034

$921

$0

$200

$400

$600

$800

$1,000

$1,200

$0.0

$1.0

$2.0

$3.0

$4.0

$5.0

$6.0

$7.0

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Billi

ons


# of Deals 10 13 37 19 3 9 11 24 15 26 32 26 25 8

Total SF 2,807,200 1,754,263 3,901,930 2,149,133 337,357 1,165,649 3,071,328 3,613,431 1,950,882 33,751,295 10,037,480 3,426,114 6,682,680 2,872,874

* PPSF price excluded the sale of 75 Ninth Avenue for $2,000 PSF. PPSF including 75 Ninth Avenue is $1,372.

*



14

New York

Quarterly2Q2018

Downtown Historical Office Sales

$214$250

$446

$312

$107

$190

$274 $270

$387

$434

$514

$565

$624

$844

$0

$100

$200

$300

$400

$500

$600

$700

$800

$900

$0.0

$0.5

$1.0

$1.5

$2.0

$2.5

$3.0

$3.5

$4.0

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Billi

ons


# of Deals 7 4 13 3 2 7 11 5 10 15 7 15 10 1

Total SF 1,341,507 1,210,000 6,520,582 3,061,789 1,491,882 1,936,880 5,523,620 3,160,684 4,243,295 9,814,520 2,232,547 11,505,409 7,038,733 12,328



15

New York

Quarterly2Q2018

$431 $428

$466

$410$357

$314

$375

$559

$596

$636

$665

$601 $572

$1,142 $1,225 $1,374$1,210 $1,167

$1,229

$1,275

$1,369

$1,529

$1,959

$2,209

$1,965 $2,115

$0

$500

$1,000

$1,500

$2,000

$2,500

$0

$100

$200

$300

$400

$500

$600

$700

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Average land sales PSF Average condo sales PSF

Historical Land Sale Pricing vs. Residential Condominium Pricing

56 71 43 5 22 57 70 39 102 130 90 45 25

4,186 6,969 5,713 4,029 5,240 5,050 4,330 5,021 5,050 5,147 5,433 5,560 2,122

# of Land Sales

# of Condo Sales

Residential condominium pricing represents the average for both new and resale condominium units. Source: Elliman Decade Report and Colliers New York Capital Markets



16

New York

Quarterly2Q2018

$421$467 $462

$437$398

$332

$382 $440

$735

$795$889

$565$568

14

2

32

59

29

21

10

0

10

20

30

40

50

60

70

$0

$100

$200

$300

$400

$500

$600

$700

$800

$900

$1,000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Price Per SF Number of deals

Midtown South

Historical Land Sale Pricing by Submarket

$450$445 $472

$402$354

$385$355

$662

$600

$601 $633$741

$710

33

3

23

51 52

16

7

0

10

20

30

40

50

60

$0

$100

$200

$300

$400

$500

$600

$700

$800

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Price PSF Number of deals

$371$293

$451

$0

$308

$214

$415 $448$501 $517

$669$712

$572

9

0

15

20

5 6 4

0

5

10

15

20

25

$0

$100

$200

$300

$400

$500

$600

$700

$800

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

$431 $428$466

$410$357

$314

$375

$559$596

$636 $665

$601$572

56

5

70

130

90

45

25

0

20

40

60

80

100

120

140

$0

$100

$200

$300

$400

$500

$600

$700

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Midtown

DowntownOverall Market


Land values down more than 15% from peak.


17

New York

Quarterly2Q2018

Notable Manhattan Transactions2Q2018

701 Seventh Avenue (Times Square Edition Hotel)

5 Bryant Park 1745 Broadway (Office Condominium-Leasehold)

10 Hudson Yards (20% Interest)

222 East 41st Street (Leasehold)

• Hotel (Under Construction)• 452 Units• Sale Price: $1,520,000,000• Price Per Unit:$3,362,832• Seller: Winthrop Realty JV

Witkoff JV Vector Group• Buyer: Maefield Development

JV Fortress• Located between 47th and 48th

Streets.• Estimated delivery 2018.• Features 76,000 SF retail,

signage, and meeting space.

• Office, Class A• 681,575 SF• Sale Price: $640,000,000• Price PSF: $939• Seller: The Blackstone Group• Buyer: Savanna• Located on 40th Street and 6th

Avenue.• 4.9% going-in cap rate• Major tenants at the property

include TJX Companies (74,512 sf through 2/24), Movable Ink (54,168 sf through 4/27), and CBIZ Accounting (52,168 sf through 12/27).

• The property was 90% occupied at the time of sale.

• Office, Class A• 636,598 SF• Sale Price: $595,814,466• Price PSF: $936• Seller: SL Green JV Ivanhoe

Cambridge• Buyer: Invesco• Located between 55th and 56th

Streets• 4% going-in cap rate. • The office condominium is

part of a 52-story mixed use building with residential condominiums above.

• Penguin Random House occupies 603,605 SF through June 2033.

• Ground lease payment is currently $2.5 million, increasing slightly every year with no rent resets.

• Office, Class A• 1,813,465 SF• Sale Price: $431,900,000• Price PSF: $1,191• Seller: Allianz JV KIA JV

Related Companies• Buyer: Ohio STRS (20%

Interest)• Located on 10th Avenue and

30th Street• As part of the sale, the

property was refinanced with a $1.2 billion loan from Deutsche Bank and Goldman Sachs, valuing the building at $2.15 billion.

• Allianz, KIA, and Related Companies will retain ownership of 80%.

• Office, Class A• 386,500 SF• Sale Price: $334,000,000• Price PSF: $864• Seller: Columbia Property Trust• Buyer: Commerz Real• Located between Second and Third

Avenues• 4.25% going-in cap rate.• The building is leased entirely to NYU

Langone Medical Center until January2046.

April 2018 May 2018 June 2018 May 2018 June 2018


18

New York

Quarterly2Q2018

Notable Manhattan Transactions2Q2018

122-178 West 97th Street(Stonehenge Village)

21 West End Avenue (30% Interest)

541 Lexington Avenue (The W Hotel)

250 Water Street 430 West 15th Street (Leasehold)

• Multifamily• 418 Units/ 19 Properties• 503,500 SF• Sale Price:$287,000,000• Price Per Unit: $686,603• Price PSF: $570• Seller: Stonehenge Partners JV

Ivanhoe Cambridge• Buyer: A&E Real Estate• Located between Columbus and

Amsterdam Avenues.• The unit mix between the 19

properties includes 158 1BR (avg. rent of $3,517/month), 153 2BR (avg. rent of $4,604/ month) and 104 3BR (avg. rent of $5,701/month).

• Multifamily• 616 Units• 630,198 SF• Sale Price: $195,000,000• Price Per Unit: $1,923,077• Price PSF: $1,031• Seller: Carlyle Group JV

Greenfield• Buyer: PGGM NL• Located at 61st Street and West

End Avenue• The property is 95% leased,

with 20% (127) of its units designated as affordable.

• Hotel• 697 Units• Sale Price: $190,000,000• Price Per Unit: $272,597• Seller: Starwood Capital• Buyers: Capstone Equities JV

Highgate Holdings• Property occupies the full

blockfront from 49th to 50th

Street• Currently a full-service hotel

with 14,000 sf of meeting space.

• Land/Development• 290,000 BSF• Sale Price: $182,722,500• Price Per BSF: $630• Seller: Milstein Properties• Buyer: Howard Hughes

Corporation• Property located between

Peck Slip and Beekman Street• Howard Hughes Corporation

owns roughly 600,000 SF of air rights from the New Market Building and South Street Seaport.

• Office, Class A• 98,000 SF• Sale Price: $150,000,000• Price PSF: $1,529• Seller: TH Real Estate• Buyer: Invesco• Property located between 9th and 10th

Avenues• 4.75% going-in cap rate.• The entire building is net leased to Palantir

Technologies through 2031. Palantir has subleased the entire building to Live Nation.

• The ground lease runs through 2113.

April 2018 April 2018 May 2018 June 2018 June 2018


19

New York

Quarterly2Q2018

Market Snapshot

- Manhattan Capital Markets

- Manhattan Leasing Market


20

New York

Quarterly2Q2018

Overview

Leasing Activity Up 0.7% from 1H 2017:› Leasing activity in Manhattan increased by 0.7% to 17.92 year-over-year.› Leasing volume in 1H 2018 was 19.3% above the ten-year average and 1.5% ahead of Manhattan’s five-year historical

leasing average.

FIRE Leasing Leads the Way: › Deals by FIRE (financial services, insurance and real estate) tenants led leasing activity with a 36% industry share;

followed by TAMI (technology, advertising, media, and information services) at 22%.› Major leases in 1H 2018 included:

• Pfizer’s 800,000 SF new lease at 66 Hudson Boulevard• Latham & Watkin’s 407,000 SF relocation to 1270 Avenue of the Americas• Discovery Inc.’s 362,000 SF consolidation at 230 Park Avenue South

Asking Rents Up Slightly: › At an average of $74.19/ SF, asking rents were up 1.5% year-over-year.

Steady Availability Rate:› Manhattan’s availability rate remained unchanged at 10.2%.› Sublet availability remained steady at 1.9%. It has remained at or below 2% for the last six years.

Negative Year-to-Date Net Absorption: › Net absorption during the first half of 2018 was negative 1.97 million square feet, despite nearly 460,000 SF of positive

absorption in 2Q 2018.

Demand in 2017 was Helped by Job Creation and Low Unemployment: › At 3.4%, New York City’s unemployment rate (as of May 2018) was down 0.9pp year-over-year.› From May 2017 to May 2018, New York City added 79,500 new private sector jobs, a 2.1% yearly increase.

Sources: NYS Dept. of Labor, Colliers International Research


21

New York

Quarterly2Q2018

Current Office Market Statistics

Market Inventory Availability Rate Average Asking Rent

Midtown 236,502,897 10.2% $80.57

Midtown Class A 204,164,512 10.1% $83.66

Midtown Class B 28,474,173 11.2% $61.99

Midtown South 175,538,584 8.8% $74.31

Midtown South Class A 49,067,020 10.9% $90.05

Midtown South Class B 86,099,583 7.7% $66.51

Downtown 105,245,744 12.7% $63.02

Downtown Class A 81,005,183 13.5% $63.96

Downtown Class B 20,684,936 11.1% $58.34

Manhattan 517,287,225 10.2% $74.19

2Q 2018

*Trophy designation is a subset of Class A



22

New York

Quarterly2Q2018

Yearly Comparison by Major Market

10.0%

7.0%

12.6%

9.6%

10.7% 8.4%

12.3% 10.3%

10.4% 8.2%

11.7% 10.0%

10.2% 8.8%

12.7% 10.2%

0%

2%

4%

6%

8%

10%

12%

14%

Midtown Midtown South Downtown Manhattan

2015 2016 2017 YTD 2018

Overall Availability Rates

$80.61 $66.07

$57.63

$71.50

$82.39 $67.81

$59.01

$73.24

$80.86 $66.86

$63.00

$72.74

$80.57

$74.31

$63.02

$74.19

$0$10$20$30$40$50$60$70$80$90


2015 2016 2017 YTD 2018

Overall Asking Rents

Class A Availability Rates

10.3%

6.3%

14.4%

10.9%

11.0% 7.8%

13.6% 11.2%

10.5%

7.0%

13.0% 10.6%

10.1%

10.9%

13.5% 11.1%

0%2%4%6%8%

10%12%14%16%


2015 2016 2017 YTD 2018

Class A Asking Rents

$83.37

$74.77 $58.70

$75.49

$85.09

$81.72 $60.25

$78.19

$84.09

$85.39 $64.42

$78.13

$83.66

$90.05

$63.96

$78.63

$0$10$20$30$40$50$60$70$80$90

$100


2015 2016 2017 YTD 2018



23

New York

Quarterly2Q2018

Landlord Concessions by Year

$40.35

$49.56

$59.48

$63.33

$65.30

$69.33

$90.27

$30.89

$55.15

$56.82

$62.67

$63.36

$72.46

$90.31

$0$10$20$30$40$50$60$70$80$90

$100

2012 2013 2014 2015 2016 2017 YTD 2018

Midtown Downtown

$26.25

$41.24

$53.71

$58.07 $44.65

$68.05

$64.59

$32.08

$35.68

$25.06

$45.69 $30.30

$53.92

$92.22

$29.06

$37.67

$51.88

$44.81

$51.35

$74.66

$65.91

$0$10$20$30$40$50$60$70$80$90

$100

2012 2013 2014 2015 2016 2017 YTD 2018

Midtown Downtown Midtown South

5.7

7.4

8.0

8.9

9.4 9.1

12.4

5.9

9.8

14.3

9.8 9.2

9.8

10

0

2

4

6

8

10

12

14

16

2012 2013 2014 2015 2016 2017 YTD 2018

Midtown Downtown

Tenant Improvements Free Rent

CLASS

A

3.7

7.0

7.7 7.3

5.3

7.5

9.3

6.5 5.5 4.5

5.5

6.2

6.1 5.4

5.4

6.4

8.4

7.1

7.1

10.8

11.7

0

2

4

6

8

10

12

14

2012 2013 2014 2015 2016 2017 YTD 2018

Midtown Downtown Midtown South

PSF

PSF Months

Months

CLASS

B

Source: Colliers International Research. Concession values are based on direct deals > five years in term.


24

New York

Quarterly2Q2018

Asking Rent vs. Starting Rent

6.9%

6.2%

9.9%

9.1%

5.8%

8.5%8.3%

7.5% 7.7%

0%

2%

4%

6%

8%

10%

Midtown Midtown South Downtown

Star

ting

Ren

t vs.

Ask

ing

Ren

t Gap

YTD 2018 2017 2016



25

New York

Quarterly2Q2018

Historical Absorption and Leasing Activity

Absorption Leasing Activity

8.44

M

4.25

M

-3.7

9M

1.26

M

-1.9

7M

-6M

-4M

-2M

M

2M

4M

6M

8M

10M

Squa

re F

eet

M

5M

10M

15M

20M

25M

30M

35M

40M

Squa

re F

eet

Midtown Midtown SouthDowntown 10 Year Rolling Average: 29.0 MSF



26

New York

Quarterly2Q2018

Midtown Class A Asking Rent

$48.19

$95.00

$83.66

$66.39

$95.99

$40

$50

$60

$70

$80

$90

$100

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Recorded Asking Rent CPI Adjusted 2000 Rent

Adjusted for Inflation (CPI)

Source: U.S. Bureau of Labor Statistics, Colliers International Research


27

New York

Quarterly2Q2018

Midtown and Downtown – Class A Asking Rents

$0

$10

$20

$30

$40

$50

$60

$70

$80

$90

$100

Aski

ng R

ent (

$/SF

)

Midtown Downtown

2003–2007: rent increaseMidtown: +86% Downtown: +65%

2007–2009: rent decreaseMidtown: -33% Downtown: -21%

2009–2Q 2018: rent increaseMidtown: +39% Downtown: +63%



28

New York

Quarterly2Q2018

Leases Greater Than 100,000 SF


2,131,392 SF

6RENEWALS

305,365 SF

1EXPANSIONS

916,642 SF

2RENEWAL & EXPANSIONS

1,184,758 SF

6RENEWALS

479,291 SF

2EXPANSIONS

281,175 SF

1RENEWAL & EXPANSIONS

YTD 2018 YTD 2017

6,492,492 SF22

6,078,243 SF29

3,139,093 SF13

4,133,019 SF19

3,353,399 SF9

TRANSACTIONS

NEW/RELOCATIONS

RENEWALS & EXPANSIONS1,945,224 SF

9


29

New York

Quarterly2Q2018

62%16%

15%

3%4%

5,000 - 14,999 SF 15,000 - 24,999 SF 25,000 - 49,999 SF 50,000 - 99,999 SF 100,000 SF+

61%24%

6%5%4%

Leasing Activity by Size

By Number of Deals

By Share of Activity

36%

20%

20%

17%

7%

Source: Colliers International Research. Excludes deals under 5,000 SF.


30

New York

Quarterly2Q2018

Taking Rents

6787 95

125

163138

155

90

30

2835

32

65

45

53

254

2

8

16

7

14

4

3

0

50

100

150

200

250

2011 2012 2013 2014 2015 2016 2017 YTD 2018

Num

ber o

f Dea

ls

$75.00 - $99.99 $100.00 - $149.99 $150.00 +



31

New York

Quarterly2Q2018

Colliers New York Capital MarketsContact Information

Richard BaxterVice Chairman+1 212 716 [email protected]

Yoron CohenVice Chairman+1 212 716 [email protected]

Scott LathamVice Chairman+1 212 716 [email protected]

Ameet AminSenior Managing Director+1 212 716 [email protected]

Jason GoldSenior Managing Director+1 212 716 [email protected]

Stephen ShapiroSenior Managing Director+1 212 716 [email protected]

Documents

New York Quarterly 2Q2018