MALONE Commercial & Investment Real Estate 2011 Office Market - PowerPoint PPT Presentation

Greater Portland Office Market Survey Presented by James D. Harnden MALONE Commercial & Investment Real Estate

2011 Office Market Highlights ♦ Overall vacancy rate up only .27% - worst is over ♦ 90,000 sq. ft. of positive net absorption - 1 st time positive since 2008 ♦ Highest lease transaction volume since 2006 ♦ Remains tenant/buyer market given vacancy rates at higher levels than 5-yr (10.3%) and 10-yr (8.5%) avg. ♦ Cautiously optimistic MALONE G REATER P ORTLAND O FFI CE M ARKET S URVEY Commercial & Investment Real Estate

Historic Overall Vacancy/Net Absorption 300,000 14% 12.92% 235,129 232,775 216,680 12.65% 12% 200,000 10.39% 10% 106,589 89,076 100,000 8.59% 32,194 8% 23,675 7.15% 0 6.97% 7.44% 7.21% (1,878) 6.05% 6% 5.15% (51,959) -100,000 4% Net Absorption (S.F.) -200,000 2% Overall Vacancy (257,867) -300,000 0% Does not include information regarding Greater Portland's medical space MALONE G REATER P ORTLAND O FFI CE M ARKET S URVEY Commercial & Investment Real Estate

Vacancy Rate Overall - Downtown 19 17.60 17.32 Downtown A 17 Downtown B 16.54 15.20 TOTAL 15 15.27 13 12.08 11.55 P E R C E N T 11.36 11.24 11 9.94 9.39 9.40 8.99 9 8.88 8.82 7.79 7.50 7.88 8.09 7.35 7.27 6.98 7 6.41 6.86 6.38 6.48 6.41 4.90 4.87 5 3.53 3 1 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 1 2 3 4 5 6 7 8 9 10 Does not include information regarding Greater Portland's medical space MALONE G REATER P ORTLAND O FFI CE M ARKET S URVEY Commercial & Investment Real Estate

Significant Lease Transactions & Vacancies | Downtown 254-258 Commercial Street 2 Canal Plaza ♦ ♦ - New construction - Savings Bank of Maine leased 16,355 SF - Pierce Atwood leased 72,000 SF - 17,710 SF vacant - Vacancy of 23,000 SF Two Portland Square ♦ One Monument Square - Stone Coast leased 22,000 SF ♦ - 75,600 SF vacant - 37,416 SF vacant 443 Congress Street Two Monument Square ♦ ♦ - Portland Regional Chamber leased 5,280 SF - 2 floors vacated by Health Dialog - Local Thunder leased 5,364 SF - ½ floor vacated by Dead River - Planned Parenthood leased 10,600 SF - Vacancy of 50,000 SF 511 Congress Street 222 St. John Street ♦ ♦ - AMEC/MACTEC renewed and expanded - 25,287 SF vacant 44,124 SF - Troubh Heisler renewed 11,523 SF 390 Congress Street ♦ - I-Many renewed 10,700 SF - 81,906 SF vacant - 20,911 SF vacant 477 Congress Street ♦ - 39,296 SF vacant MALONE G REATER P ORTLAND O FFI CE M ARKET S URVEY Commercial & Investment Real Estate

Vacancy Rate Overall - Suburban 17 x Suburban A ▲ Suburban B 15 ● Total 12.85 13 P E R C E N T 11.74 11.00 11 10.76 9.94 10.33 10.37 9.74 8.68 9 9.66 9.56 8.25 7.19 7.78 7.16 6.63 7 6.16 6.35 6.40 5.72 6.08 4.98 5 5.27 5.30 5.23 4.14 3.98 3.69 3 3.14 2.36 1 1 2 3 4 5 6 7 8 9 10 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Does not include information regarding Greater Portland's medical space MALONE G REATER P ORTLAND O FFI CE M ARKET S URVEY Commercial & Investment Real Estate

Significant Lease Transactions & Vacancies | Suburban 82 Running Hill Road 300 Southborough Drive ♦ ♦ - Dead River owner/occupied 26,546 SF - 95,000 SF vacant 707 Sable Oaks 71 U.S. Route 1 ♦ ♦ - Possible shadow space of 24,246 SF - Crossroads for Women leased 5,636 SF - Fitness center leased 5,000 SF 6 Ashley Drive - Pediatric cardiologist leased 5,000 SF ♦ - Cole Haan leased 38,390 SF 500 Southborough Drive ♦ 600 Sable Oaks ♦ - Sironahealth leased 17,832 SF - 34,913 SF vacant 75 John Roberts Road ♦ One Riverfront Plaza ♦ - 19,970 SF vacant - 23,770 SF vacant MALONE G REATER P ORTLAND O FFI CE M ARKET S URVEY Commercial & Investment Real Estate

Growth Trends: Rentable SF/Asking Rent 10,500,000 $18 $17.63 $17.24 10,003,276 10,000,000 $17 $16.95 9,876,142 $16.78 $16.67 9,769,153 $16.39 9,684,467 9,500,000 $16 9,492,995 $15.90 9,287,786 $15.32 9,136,854 $15.02 9,051,689 9,000,000 $15 ▲ Rentable Square Feet Average Annual Growth of 1.67% $14.51 8,815,201 ● Asking Rental Rates Average Annual Growth of 1.74% 8,620,268 8,500,000 $14 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Does not include information regarding Greater Portland's medical space MALONE G REATER P ORTLAND O FFI CE M ARKET S URVEY Commercial & Investment Real Estate

Regional Office Market Overall Vacancy Comparison 10,003,276 SF 12,512,690 SF 183,147,560 SF 25,654,861 SF NOTE: So. New Hampshire & Hartford 2011 Vacancy is through SOURCE: Cushman & Wakefield regional information the 3 rd quarter of 2011. Malone Commercial Brokers local information MALONE G REATER P ORTLAND O FFI CE M ARKET S URVEY Commercial & Investment Real Estate

Notable 2011 Sales ♦ 443 Congress Street, Portland ~ 38,562 SF Class B office building ~ $1,600,000 ~ Investor sale ♦ 6-8 City Center, Portland ~ 23,000 SF Class B office building ~ $1,500,000 ~ Investor sale ♦ 100 Waterman, South Portland ~ 8,000 SF - 1 st floor sold to S.P. Housing Authority - $935,000 ~ 16,000 SF – 3 rd & 4 th floors sold to First Atlantic Mortgage - $1,650,000 ♦ 700 Technology Way, Scarborough ~ 8,000 SF Class B office building ~ $1,400,000 ~ Investor sale MALONE G REATER P ORTLAND O FFI CE M ARKET S URVEY Commercial & Investment Real Estate

Notable 2011 Sales ♦ 236 Gannett Drive, South Portland ~ 8,000 SF Class B office building ~ $835,000 ~ Investor sale ♦ 155 Gannett Drive, South Portland ~ 22,405 SF Class B office building ~ $3,650,000 ~ Investor sale ♦ 70 Gray Road, Falmouth ~ 140,000 SF Class A office building ~ Partnership sale ♦ 90 Bridge Street, Westbrook ~ 240,000 SF Class B office building ~ $2,500,000 (note purchased) ~ Investor sale MALONE G REATER P ORTLAND O FFI CE M ARKET S URVEY Commercial & Investment Real Estate

. . . . . . Looking ahead toward 2012 ♦ Future Projects? ~ Thompson’s Point Project ~ J.B. Brown Sites (W. Commercial, York St., Maple St.) ~ Sprague Site – Fore Street ~ Federated Companies – Somerset Street ~ Opechee Site – Fore/India Streets ♦ 2012 Predictions ~ Vacancy remains flat or decreases slightly ~ Net absorption continues to be positive ~ Sales remain flat ~ Still a tenants/buyers market ~ Mood is more and more optimistic MALONE G REATER P ORTLAND O FFI CE M ARKET S URVEY Commercial & Investment Real Estate