DT West Submarket Dashboard Q3 2009

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Office Submarket Dashboard: Downtown West SUBMARKET INDICATORS

Q3-09

MAP OF SUBMARKET

Q2 2009

Q3 2009

Office Inventory*

14,431,484

14,434,984

Net Absorption

57,588

38,875

Vacancy Rate

7.9%

7.2%

Average Asking Net Rent

$21.99

$22.01

Average Additional Rent

$15.31

$14.99

Trend

*Office Inventory: For the purpose of this report, buildings with less than 10,000 sf of office space and buildings owned and occupied by the government have not been included in the office inventory. There are 217 office buildings surveyed in this submarket.

AVAILABLE SUPPLY SPLIT Direct

Sublease

Sublease as % of Total Available

60%

1,600,000 50%

AVAILABLE SPACE OPTIONS

Square Feet

1,400,000

Number of units on the submarket by size brackets

1,200,000

40%

1,000,000

30%

800,000

20%

0 - 4k sf

4k - 10k sf

10k - 20k sf

20 - 50k sf

50k - 100k sf

100k sf +

185

69

13

12

1

0

# of units**

** Counting smallest divisible units in existing buildings and buildings which are under construction.

600,000 10%

400,000 0%

200,000

TOP Office Lease Transactions by Size

0

-10%

Q2 2008

Q3 2008

Q4 2008

Q1 2009

Q2 2009

Avail. Office Space

Not Avail. Office Space

Address

Suite

Sq. Ft.

Landlord

Tenant

370 King St W

Suite 802

11,145

Upper Canada Properties

N/A

276 King St W

Suite 301

5,200

Ed Mirvish Enterprises

Apple Canada Inc.

331-333 Adelaide St W

Suite 200

4,724

Allied Properties REIT

N/A

Q3 2009

GROSS RENT & AVAILABILITY BY BUILDING CLASS Gross Rent

$45

10,000,000 $28.70

$40

RECENT TRANSACTIONS Q3 2009

9,000,000

$42.60

TOP Office Sale Transactions by Price 8,000,000

$35

Date

Address

Price

Vendor

Purchaser

Size

$/PSF

$4,425,000

Private Individual

Northern Lights Television

21,129

$209

7,000,000 $30

9/24/2009

15 Duncan St

5,000,000

$25.02 $20

Sq. Ft.

Gross Rent $/Sq. Ft.

6,000,000 $25

OCCUPIED SPACE BY MAJOR BUSINESS CATEGORIES

4,000,000 $15

Data,Publishing, Broadcasting Services 20%

3,000,000

$10

2,000,000

$5

Class A

Class B

Manufacturing & Distribution 13%

Class C

Note: Not available office space (blue) and available office space (yellow) add up to the total inventory of office space in the respective building class.

18 MONTH TREND

Others 4%

Public Service & Private Sector Services 17%

TOP PROJECTS UNDER CONSTRUCTION BY SIZE

Absorption

Asking Net Rent

Address

Vacancy Rate

25

10.0% 9.0%

21

17

7.2%

15 13

7.0% 6.0%

11

5.0%

9 7

4.0%

5

3.0%

3 1

Sq. Ft.

Anchor Tenant

* Offering all downtown location advantages but at lower rental prices than in the Financial Core - excellent options for those tenants whose operations do not require a core location * Good connections to public transit (streetcars along King St W and Queen St W) and easy access to Gardiner Expressway makes this submarket accessible to employees and customers. * With new residential high-rise development (e.g. Concord's CityPlace), the labour pool will increase, expand and diversify * Significant amount of former factory buildings have been converted into office buildings hosting information industry, art and design workspaces - aka Brick & Beam office space * Submarket will benefit from the development of the Metrolinx transportation plan and MoveOntario 2020.

2.0% Q2 2008

Q3 2008

Q4 2008

-3 -5

Q1 2009

Q2 2009

Q3 2009

Est. Com.

SUBMARKET CHARACTERISTICS

8.0%

Vacancy Rate

19

Developer

No construction took place during this period.

$22.01

23

Net Rent $/sf. / Absorption (10,000's)

Professional Services 40%

1,000,000

$-

-1

Finance 6%

1.0% 0.0%

Source: Colliers International, Q3 2009 Information contained herein has been obtained from the owners or other sources deemed reliable. We have no reason to doubt its accuracy but regret we cannot guarantee it. All properties subject to change or withdrawal without notice. All numbers reported use the most accurate information available at the time of publishing, however we acknowledge that there may be marginal changes over time as more accurate information becomes available.

Colliers Macaulay Nicolls (Ontario) Inc., Brokerage.


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