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D5I-%8-%&-:),&"%#,%8-.B&<.-M84&"%5,N& Downtown Suburban ))CDE' 113 111 +FCDE' 109 107 L& 105 & 103 101 99 97 95 2008 2009 2010 2011 2012 2013 2014 (F) 2015 (F) 2016 (F) • ! The City of Edmonton’s new office tower will significantly affect A Class space in the financial core. Source: Altus InSite, JLL Research

O,M&3$%$5"$%&9:),&3-%(8.E)P-%& Total Office Inventory (Q1 2014) Under Construction (2014 - 2018) % of Inventory Under Construction 1.5MSF 6.1% 24 MSF Edmonton 3.0% 8.8% 11.3% 92 MSF Montreal 4.3% 63 MSF Calgary Vancouver 52 MSF 2.8MSF 7.1MSF 4.6MSF 171 MSF Toronto 7.1MSF 7.3MSF Source: Altus InSite, JLL Research

3$%$5"$%&-:),&I$.Q,8&#$)$%)B& & Edmonton Toronto Vancouver Calgary 12.00% 11.00% +-CGE' 10.00% HC,E' 9.00% DCHE' Vacancy rate 8.00% 7.00% ICHE' 6.00% 5.00% 4.00% 3.00% 2.00% Q1 2008 Q1 2009 Q1 2010 Q1 2011 Q1 2012 Q1 2013 Q1 2014 Source: Altus InSite, JLL Research

3$%$5"$%&-:),&I$.Q,8&$#,.$<,&<.-((&.,%8(& Edmonton Toronto Vancouver Calgary $41.00 Average gross rent ($ per square foot) $39.00 $37.00 J,GCKK'>!<' $35.00 J,,C,F'>!<' $33.00 $31.00 J)HCHI'>!<' $29.00 J)FC)+'>!<' $27.00 $25.00 Q1 2008 Q1 2009 Q1 2010 Q1 2011 Q1 2012 Q1 2013 Q1 2014 Source: Altus InSite, JLL Research

D5I-%8-%&9:),&'$.Q,8& & Absorption New Construction Vacancy 1,000,000 10.0% 9.0% 800,000 8.0% 600,000 7.0% Square feet 6.0% 400,000 5.0% 200,000 4.0% 3.0% 0 2.0% -200,000 1.0% -400,000 0.0% 2008 2009 2010 2011 2012 2013 2014 (F) 2015 (F) Source: Altus InSite, JLL Research

D5I-%8-%&%,M&)-%(8.E)P-%&R& .,5,#,1-0I,%8(& & New supply since 2008 ! C-M%8-M%& +EAE.A$%& 1,400,000 Square feet 1,200,000 1,000,000 800,000 600,000 400,000 200,000 - 2008 2009 2010 2011 2012 2013 2014 (F) 2015 (F) 2016 (F) Source: Altus InSite, JLL Research

D5I-%8-%&#$)$%)B&.$8,(& Downtown Suburban 16.00% 14.00% Vacancy rate 12.00% +-CGE' +-C-E' 10.00% HC-E' DC-E' DCIE' DC-E' 8.00% ICKE' 6.00% 4.00% Q4 2008 Q4 2009 Q4 2010 Q4 2011 Q4 2012 Q4 2013 Q4 2014 (F) Q4 2015 (F) Source: Altus InSite, JLL Research

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3"8B&-F&D5I-%8-%U&-:),&)-%(-1"5$P-%& & Approximately $300 million, 27-storey building • ! City of Edmonton has signed a 20-year lease • ! for 350,000 square feet

3"8B&-F&D5I-%8-%U&-:),&)-%(-1"5$P-%& HSBC Bank Place 146,862 s.f. Scotia Place CN Tower 132,178 s.f. 350,000 s.f. 102,031 s.f.

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