Calgary Downtown Office Overview CB Richard Ellis Research October - PowerPoint PPT Presentation

Calgary Downtown Office Overview CB Richard Ellis – Research October 2010

Inventory vs. Vacancy Rates 2000 – 3Q 2010 Historical Calgary Downtown Office Inventory vs. Vacancy Rates 2000 - 3Q 2010 37,000 18.0% 36,000 16.0% 35,000 14.0% Inventory (0 0 0 's) SF Vacancy Rates (%) 34,000 12.0% 33,000 10.0% 32,000 8.0% 31,000 6.0% 30,000 4.0% 29,000 2.0% 28,000 0.0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 3Q 2010 Years Inventory Vacancy 2009 = Centennial Place West 2010 = Eighth Avenue Place East CB Richard Ellis | Page 2

Absorption 2000 – YTD 2010 Calgary Downtown O ffice Absorption 2000 - YTD 2010 2,500 2,000 Absorption 000's SF 1,500 1,000 500 0 -500 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 YTD 2010 -1,000 -1,500 Years CB Richard Ellis | Page 3

Average Rental Rates by Class By Class Average Downtown R ental R ates 3Q 2010 $40.00 $33.85 $35.00 ate $30.00 ental R $25.00 $22.39 $22.16 $20.00 Average R $16.76 39.4% $13.13 $15.00 $10.90 $10.00 17.2% 17.2% 13.2% 11.8% $5.00 $0.00 Downtown AA Class A Class B Class C Class D Class Overall Building Class CB Richard Ellis | Page 4

Average Rental Rates by Submarket By Class 39.4% 17.2% 17.2% 13.2% 11.8% CB Richard Ellis | Page 5

Vacancy By Class Vacancy Rates by Classes 3Q 2010 45.0% 40.0% Vacancy Rate (%) 35.0% 30.0% 25.0% 20.0% 39.4% 15.0% 10.0% 17.2% 17.2% 5.0% 11.8% 13.2% 0.0% Class AA Class A Class B Class C Class D Classes CB Richard Ellis | Page 6

Downtown YTD 2010 Absorption YTD 2010 Downtown O ffice Absorption 900,000 800,000 700,000 Absorption (SF) 600,000 500,000 400,000 300,000 200,000 100,000 0 Class AA Class A Class B Class C Class D Classes CB Richard Ellis | Page 7

DOWNTOWN DEVELOPMENTS BUILDING SIZE (SF) AVAILABLE (SF) OCCUPANCY Bankers Court 275,000 0 Q3 2009 8West 140,000 25,000 Q2 2009 Le Germain 90,000 60,000 Q4 2009 800,000 180,000 Centennial Place Q1/Q2 2010 430,000 170,000 Jamieson Place 780,000 80,000 Q1 2010 PennWest Plaza 360,000 171,000 Q2 2010 (HH2) 8 th Avenue Place (E) 1,070,000 680,000 Q1 2011 The Bow 1,700,000 0 Q3 2011 Centennial Place - West Eighth Avenue Place – East The Bow Jamieson Place and West CB Richard Ellis | Page 8

Q3 Downtown Sublease Market � 1,345,000 SF of sublease product and falling � Represents 26% of total available product � Was 52% of total product 12 months ago Available Product Class AA Class A 378,899 713,071 Sublease June/10 231,256 509,306 Sublease Sept/10 Net Rates (Improved $30 - $20 as is $25 - $10 as is Space) CB Richard Ellis | Page 9

Encana Fallout TD Canada Trust Tower Floors: 8 – 30 Area: 410,000 SF Bankers Hall East Encana Place Floors: 10 – 18, p19, 20 Area: 176,000 SF Floors: 2 – 30 all office floors Area: 430,000 SF One Palliser Square Floors: 3 – 11 24 – 25 Area: 163,000 SF Bankers Hall West Floors: 7 – 9 Area: 61,000 SF CB Richard Ellis | Page 10

Calgary Downtown Office Overview CB Richard Ellis – Research October 2010