Office Market Report / Q1 2015 CBD.LODO.Platte Market Overview Rents are climbing, hitting a new high at $32.25/SF. New buildings are leasing at $40-$45/SF, as downtown continues to demonstrate remarkable strength. In 2014, demand for space exceeded 900,000 sf. So far in 2015, demand has fallen to a much slower pace, with only 100,000 SF of absorption. A “wait and see” attitude prevails on the impact of oil prices. Vacancy is under 11%, and negotiating leverage is difficult for tenants. Class B vacancy has dropped to 8%. Absorption 2007- 2014 Class A Class B Class A&B Top 5 Leases 4,000 1,400 3,500 1,200 3,000 1,000 2,500 800 1 Transamerica Corp 99,072 SF 1801 California St CBD 2 Anadarko 65,846 SF 1001 17th St CBD 3 Molson Coors Brewing Company 53,872 SF 1801 California St CBD 4 Ardent Mills 52,030 SF 1875 Lawrence St CBD 5 Venoco, Inc. 51,235 SF 370 17th St CBD 2,000 600 400 1,500 200 1,000 0 500 -200 0 -400 -500 -600 2007 2008 2008 2009 2009 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 2015 Asking Rental Rate (Gross) Compared to Vacancy Vacancy $33 17% Rent $32 16% $31 15% $30 14% $29 13% $28 12% $27 11% $26 10% $25 9% 2008 2009 2010 2011 2012 2013 2014 2015 Current Rental and Vacancy Rates Class A *The below arrows represent the change from previous quarter Class B Vacancy 12 .1% Rent $33.98 Class A & B Vacancy 8.2% Rent $27.54 Vacancy 10.8% Rent $32.25