The Columbus office market gained 233,000 square feet of positive absorption in Q4 2011, with vacancy decreasing to 12.2%. Construction has remained slow. Duke Realty sold 19 class A and B office properties totaling over 2 million square feet to Blackstone for $1.08 billion. The unemployment rate in Columbus dipped to 6.6% in November, and information, financial activities, and professional/business services employment increased or remained steady.

1. Q4 2011 | OFFICE
GREATER COLUMBUS REGION
OFFICE TRENDS REPORT
Gaining Speed
COLUMBUS REGION OVERVIEW
The Columbus office market gained 233,000 square feet of positive absorption in the fourth quarter.
Except for first quarter, 2011 was a solid year for positive absorption. Construction has remained
slow with very few speculative projects in the pipeline. Leasing has been consistent and there is
limited opportunity for tenants who are in need of space greater than 50,000 square feet. There are
only 12 class A buildings in Columbus with 50,000 square feet of contiguous space available. Chase
Bank was the biggest leasing player this quarter leasing all of the vacancy at Westar IV. Duke Realty
sold 19 (2.08 million square feet) class A and B properties to Blackstone, and 63 others across the
MARKET INDICATORS country for $1.08 billion.
Q4 Q1
2011 2012* FORECASTS AND REFLECTIONS
• TheColumbus region posted strong positive continues at Water’s Edge II in New Albany.
VACANCY
results during the fourth quarter of 2011 with Pharmaforce completed construction of their
NET ABSORPTION the vacancy rate decreasing to 12.2 percent 110,000-square-foot facility in New Albany.
from 12.7 percent. The Central Business • Deals are pressured by high tenant improvement
CONSTRUCTION —
District (CBD) made the largest gains with costs and lower rates. Landlords are
RENTAL RATES — — 144,720 square feet absorbed. experiencing very low net effective returns on
• NetJets,Inc.’s construction continues for their deals. Landlords are also finding it difficult to
*Projected trend for next quarter
140,000-square-foot building at Port Columbus refinance buildings due to the low lease rates
International Airport and construction also affecting the value.
EMPLOYMENT DRIVEN
RENTAL RATES ABSORPTION, COMPLETIONS, AND VACANCY RATES
In preliminary numbers,
300,000 20.0% the Columbus MSA
18.0% unemployment rate has
200,000 dipped to a 6.6 during
16.0%
November. Total
100,000 14.0% employment levels are
0 12.0% down however, meaning
10.0% that we may not see the
3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
(100,000) 08 08 09 09 09 09 10 10 10 10 11 11 11 11 usual causal connection
8.0%
between decreased
(200,000) 6.0% headline unemployment
4.0% and space leased.
(300,000)
2.0%
(400,000) 0.0%
Completions Absorption Vacancy Rate
www.colliers.com/columbus

2. RESEARCH & FORECAST REPORT | Q4 2011 | OFFICE | GREATER COLUMBUS REGION
EMPLOYMENT DATA health services decreased by about 800 jobs and
Delaware
is down 1.8 percent year over year.
County
The preliminary unemployment rate for Columbus
in November dipped to 6.6 percent from 7.7
Union County
Powell Polaris
Westerville
percent in October, which is the lowest it has MARKET ACTIVITY
Licking
County
been since December 2008. The unemployment
Worthington
Dublin
Bethel
New
Albany Market interest has increased during the fourth
North
Hilliard
Central
Easton
rate is determined by the ratio of the number of quarter. Colliers International attempts to discern
Arlington/ Gahanna/
Grandview
CBD
Airport
those who have looked for work in the last 4 demand for office space by tracking tenants in
Madison
County
East
weeks compared to the total number of workers the market. There was a slight increase over last
Southwest
Southeast
including those searching for employment quarter in the size desired by tenants that have
Fairfield
County (civilian labor force). This is important to note as toured space and have been in the market. There
the civilian labor force has shrunk by 21,000 were roughly 12 tenants seeking more than
Pickaway County
since June. 25,000 square feet of space. There were 75
tenants in the market to close December, which
The Columbus office market consists The sectors which are significant for office is down by 20 from September when more than
of 15 suburban submarkets plus the leasing were either steady or increased in the 90 tenants were in the market.
Central Business District submarket. The preliminary July numbers. The information
Columbus region features a total of 62.6
million square feet, 43.5 million of which
sector increased slightly in November over Market Activity Volume is the sum of the absolute
is suburban. October, but is still down 1.8 percent year-over- value of each absorption change in the market,
year. Employment for financial activities was flat and it tells us how much space was in transition
from November to October, but the growth year- in the quarter. The total amount of space in
over-year in November was 5.0 percent. transition was slightly less than 1 million square
Professional and business services gained 1,800 feet. This is up 9.3 percent over the average of
jobs from October to November, and the growth the past two years and up 53 percent from Q4
year over year is 1.9 percent. Education and 2010.
MARKET ACTIVITY
SALES ACTIVITY
PROPERTY ADDRESS SALES DATE SALE PRICE SIZE SF BUYER SELLER PRICE / SF TYPE SUBMARKET
10 W Broad Street October $27,000,000 407,340 True North Management Invesco Real Estate $66.28 A CBD
4700 Lakehurst Court December $17,744,927 214,458 Blackstone Duke Realty $82.74 B Dublin
5475 Rings Road December $12,040,119 145,512 Blackstone Duke Realty $82.74 A Dublin
5455 Rings Road December $12,003,050 145,064 Blackstone Duke Realty $82.74 A Dublin
Two Easton Oval December $10,648,214 128,690 Blackstone Duke Realty $82.74 A Easton
6500 Emerald Parkway December $10,614,289 128,280 Blackstone Duke Realty $82.74 A Dublin
4349 Easton Way December $9,478,060 114,548 Blackstone Duke Realty $82.74 A Easton
4449 Easton Way December $8,860,383 107,083 Blackstone Duke Realty $82.74 A Easton
5500 Glendon Court December $8,606,610 104,016 Blackstone Duke Realty $82.74 A Dublin
4400 Easton Commons December $8,399,255 101,510 Blackstone Duke Realty $82.74 A Easton
5550 Blazer Parkway December $7,062,706 85,357 Blackstone Duke Realty $82.74 A Dublin
5555 Parkcenter Circle December $6,964,241 84,167 Blackstone Duke Realty $82.74 A Dublin
5600 Blazer Parkway December $5,915,389 71,491 Blackstone Duke Realty $82.74 A Dublin
8720 Orion Place December $5,744,890 52,000 Patrick Kelly Miller Investment JV $110.48 B Polaris
250 W Rich Street December $5,200,000 113,309 Genworth Financial Arshot Investment $45.89 A CBD
5500 Frantz Road December $4,736,382 57,242 Blackstone Duke Realty $82.74 B Dublin
6525 W Campus Oval December $4,327,400 66,575 Blackstone Duke Realty $65.00 A New Albany
2400 Corporate December $1,850,000 93,547 Chou Katella Partners Joseph Skilken Company $19.78 B Westerville
Exchange
LEASE ACTIVITY
PROPERTY ADDRESS LEASE SF LANDLORD TENANT ASKING PRICE (NNN) TYPE SUBMARKET
565 Metro Place 30,000 Two Metro Place Partners LLC Metro Park $12.00 A Dublin
445 Hutchinson Avenue 13,621 EOP-Community Corporate Amerassist $10.00 A Worthington
Center LLC
P. 2 | COLLIERS INTERNATIONAL

3. RESEARCH & FORECAST REPORT | Q4 2011 | OFFICE | GREATER COLUMBUS REGION
UPDATE Market Comparisons
OFFICE MARKET
Net Absorption Construction Asking Rental Rates
SUBMARKET Total SF Vacant SF Vacancy % Current Quarter Year-to-date Current Completions Class A ($) Class B ($)
CBD 19,091,001 2,107,621 11.0 65,897 161,101 - - $19.82 $16.87
ARLINGTON/GRANDVIEW 4,752,155 672,459 14.2 22,192 56,871 - - $21.22 $15.66
DUBLIN 9,501,878 1,274,119 13.4 (93,877) 28,596 - - $17.32 $14.95
EAST 3,555,814 542,166 15.2 (1,510) 41,390 140,000 - $17.03 $14.32
EASTON 2,685,332 166,634 6.2 2,626 17,097 - - $17.90 $22.50
GAHANNA/AIRPORT 1,262,397 151,172 12.0 8,004 198,217 - - $17.63 $16.34
HILLIARD 2,480,456 457,110 18.4 15,700 (157,850) - - $19.95 $15.03
NEW ALBANY 1,935,789 182,628 9.4 2,098 52,306 191,000 - $18.12 $15.00
NORTH CENTRAL 1,255,636 90,764 7.2 1,732 (22,939) - - $23.00 $14.16
POLARIS 4,419,869 231,526 5.2 23,897 39,045 - - $18.78 $15.69
POWELL 273,719 65,916 24.1 12,830 15,112 - - - $14.76
SOUTHEAST 402,548 60,225 15.0 - (360) - - - -
SOUTHWEST 236,158 38,061 16.1 16,486 3,412 - - - $7.50
WESTERVILLE 4,489,479 579,949 12.9 97,685 174,464 - - $16.77 $15.01
WORTHINGTON 6,496,402 1,022,533 15.7 59,486 37,010 - - $16.26 $14.42
SUBURBAN TOTAL 43,747,632 5,535,262 12.7 167,349 482,371 331,000 - $17.94 $14.86
TOTAL 62,838,633 7,642,883 12.2 233,246 643,472 331,000 - $18.61 $15.47
Net Absorption Construction Asking Rental Rates
PROPERTY TYPE Total SF Vacant SF Vacancy % Current Quarter Year-to-date Current Completions By Product Type
CLASS A 25,676,078 2,819,295 11.0 53,021 245,347 331,000 - $18.61
CLASS B 23,102,511 3,140,756 13.6 97,398 373,625 - - $15.47
CLASS C 14,060,044 1,682,832 12.0 82,827 24,500 - - $12.94
TOTALS 62,838,633 7,642,883 12.2 233,246 643,472 331,000 - $16.35
QUARTERLY COMPARISON AND TOTALS
Net Absorption Construction Asking Rental Rates
QUARTER, YEAR Total SF Vacant SF Vacancy % Current Quarter Year-to-date Current Completions By Product Type
Q3, 2011 62,838,633 7,876,129 12.7 238,414 410,226 331,000 - $18.58 $15.41
Q2, 2011 62,838,633 8,114,543 12.9 194,313 171,812 246,500 - $18.25 $15.25
Q1, 2011 62,838,633 8,394,042 13.4 (14,500) (14,500) 246,500 65,000 $18.10 $15.46
Q4, 2010 40,544,677 7,188,371 17.73 (13,360) (253,648) 65,000 - $18.56 $14.96
COLUMBUS REGION MARKET
Colliers International has changed
the critieria for inclusion in the office
dataset. All 10,000 square foot, class A,
B and C buildings, not owned and fully
leased by government are included in
the dataset.
COLLIERS INTERNATIONAL | P. 3

4. RESEARCH & FORECAST REPORT | Q4 2011 | OFFICE | GREATER COLUMBUS REGION
DUKE PORTFOLIO SALE taking 82,000 square feet at 460 Polaris
Parkway.
Duke Realty announced a change in the targeted
composition of their holdings to 60 percent in
512 offices in
industrial buildings, 25 percent in office WEST MARKET
61 countries on
properties and 15 percent in medical office real The west submarkets are Arlington/Grandview
estate. To reflect that, they sold 19 office and Hilliard. The Hilliard market saw a slight gain 6 continents
properties in the Columbus MSA and 63 others in absorption from LAMS Charter School, leasing
United States: 125
in markets such as Chicago, Dallas, Minneapolis, 15,700 square feet of 3042 McKinley Avenue. Canada: 38
Tampa, Orlando and Atlanta. Blackstone Real Latin America: 18
Estate Partners VII purchased the portfolio for SOUTH MARKET Asia Pacific: 214
$1.08 Billion. In total, 2.08 million square feet of EMEA: 117
The south submarkets are the Southwest and
mostly class A office space transferred. • $1.5 billion in annual revenue
the Southeast. Very little change occurred in
these submarkets as these are among the • 978.6 million square feet under
The properties in the transfer are largely in the management
smallest, least populated submarkets.
area of the Tuttle Crossing mixed-use • Over 12,500 professionals
development in northwest Columbus and Dublin
and the Easton mixed-use development in EAST MARKET
GREATER COLUMBUS REGION:
northeast Columbus. Duke will still own about The east submarkets are the East side, Easton,
Richard B. Schuen SIOR CCIM
44 acres of development land in the Tuttle Gahanna/Airport and New Albany. Construction CEO | Principal | Columbus
Crossing office market, as well as 6 acres in in New Albany has been steady. 8800 Lyra Drive
nearby Hilliard and another 10 acres in Easton. Suite # 150
In East, Alvis House and Village Network took Columbus, Ohio 43240
11,900 square feet at 899 Broad Street, and TEL +1 614 410 5612
CENTRAL BUSINESS DISTRICT
PASS High School took 9,000 square feet at
The CBD showed positive absorption of 65,000
4300 Kimberly Parkway. Leslie Hobbs
square feet. In terms of positive absorption
Marketing & Research Manager
deals, there were numerous smaller leases
In New Albany, Daimler is developing a 8800 Lyra Drive
adding to strong leasing including WSA Suite # 150
3-building, 150,000-square-foot campus at
Architecture, Hunt Law, CBKT and Buckeye Columbus, Ohio 43240
7525 West Campus Road called the New Albany
community health. Huntington Bank had TEL +1 614 410 5640
Center of Technology. The center will function
previously been scheduled to give back a floor at
as a operations center, with internet capability
a time to 41 S High over the course of three
and other technology services. Jonathan Badgley
years, but they have elected not to do so this
year. Research Analyst
LANDLORD/TENANT 175 South Third Street
Suite # 285
Nationwide Insurance has been approved for a One of the most difficult issues for landlords in Columbus, Ohio 43201
200,000 square foot facility where they will getting deals done is the fierce competition for TEL +1 614 437 4495
house the flush of new employees transferring tenants, while also structuring a deal that avoids
into downtown. Nationwide Realty is also including termination clauses. There is limited
developing a new 51,300-square-foot, $10 pressure to make a deal. The market is tightening
million project. Located at 425 W. Nationwide up but not to a point where larger tenants are
Blvd, the site will be anchored by FBI. rushing for a decision, so large deals are still
Renovations at 232 North High Street continue. taking a long time. This document/email has been prepared by Colliers
International for advertising purposes. Colliers
International statistics and data are audited annually and
NORTH COLUMBUS MARKET In terms of what tenants are facing, large may result in revisions to previously reported quarterly
institutional tenants are growing and starting to and final year-end figures. Sources include Columbus
The north submarkets are Dublin, Powell, Polaris, Dispatch, Business First, Xceligent, and the Wall Street
dive in and take advantage of the market. This in Journal.
North Central, Worthington and Westerville. In
turn, is creating the positive absorption. Some of
Worthington, AmerAssist took 13,000 square
the industries represented by tenants in the
feet of space at 445 Hutchinson Avenue, after
market are universities, banking, non-profit and
moving out of 460 Polaris Parkway. Large
technology/IT.
changes occurred in Westerville with Chase
Accelerating success.
www.colliers.com/columbus