1. Q2 2012 | OFFICE
GREATER COLUMBUS REGION
OFFICE TRENDS REPORT
More Activity but Little Gain
COLUMBUS REGION OVERVIEW
The Columbus region posted postive absorption of 32,000 square feet. The largest lease came from
Residential Finance at 1 Easton Oval, who leased nearly 40,000 square feet of space. Vacancy
increases in the Easton submarket are due to NetJets vacating 103,000 square feet for their move to
a 140,000-square-foot, build-to-suit building at the airport.
FORECASTS AND REFLECTIONS
MARKET INDICATORS • Construction continues in New Albany on a • A
Class A office and retail space in the Short
50,000 square foot office building, which is the North is set for construction in the third quarter.
Q2 Q3
first phase of the 150,000 square feet planned. The offices at The Joseph, will be 130-unit
2012 2012* The construction of the FBI-anchored 425 hotel and office/retail, mixed-use space.
West Nationwide Boulevard in the Arena • Construction
continues on the parking garage,
VACANCY
District continues. The 51,000 square foot which is a part of the Columbia Gas-anchored,
NET ABSORPTION building will have 6,000 square feet of 240 West Nationwide Blvd. There will be
speculative space available when completed. roughly 35,000 square feet of space not leased
CONSTRUCTION • Construction
continues at 10 West Nationwide by Columbia Gas. The Columbia Gas lease at
RENTAL RATES Blvd. a 200,000 square foot office building, 200 Civic Center Drive does not run out until
which will house the current Nationwide 2014.m More parking will also be available
*Projected trend for next quarter employees working at 5900 Parkwood Place in downtown due to the reconstruction of the
Dublin when completed. parking garage at 425 North Front Street.
ASKING RATES AND
RENTAL RATES ABSORPTION, COMPLETIONS, AND VACANCY RATES CONSTRUCTION
400,000 20.0% Asking rates have
$21.00
18.0%
steadily increased
$20.00 300,000 throughout the past
$19.00
16.0% year. Operating
$18.00 200,000
$17.00 14.0% expenses have seen
$16.00
100,000 increases as well, which
12.0%
$15.00 may be affecting asking
$14.00
3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
0 10.0% ratesThere are only 48
08 08 09 09 09 09 10 10 10 10 11 11 11 11 12 12 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
8.0% spaces available in
Class A Rental Rates Class B (100,000) 08 08 09 09 09 09 10 10 10 10 11 11 11 11 12 12 Columbus larger than
6.0% 30,000 square feet;
(200,000)
4.0% seven in the CBD and
(300,000) 41 in the suburban
2.0%
markets. The market will
(400,000) 0.0% likely see continued
Completions Absorption Vacancy Rate increases in asking
rental rates, but not
www.colliers.com/columbus

2. RESEARCH & FORECAST REPORT | Q2 2012 | OFFICE | GREATER COLUMBUS REGION
EMPLOYMENT DATA employment growth leads to leasing, so these
Delaware
are positive signs.
County
The preliminary unemployment rate for Columbus
in May fell to 6.1 percent from 7.3 percent in
Union County
Powell Polaris
Westerville
January. The unemployment rate from January MARKET ACTIVITY
Licking
Dublin
Worthington New
County
to May fell each month: 7.2 in February; 6.8 in Market interest increased during the second
Albany
Bethel
North
Central
March; 6.4 in April; and finally, 6.1 in May. In May, quarter. Colliers International attempts to track
demand for office space by tracking tenants in
Hilliard Easton Gahanna/
Arlington/
Grandview
CBD
Airport
Education and Health Services employment
Madison East
grew to 140,100 from 135,500 employees in the market. The average number of tenants in
County
Southwest
January. This sector has been very strong this the market has increased slightly in second
Southeast
Fairfield
yeae, averaging 7.28 percent higher employment quarter 2012 than in first quarter 2012, 73 to 76.
County
levels compared to the same time last year. However, there are fewer tenants seeking large
Pickaway County
spaces than last quarter. 14 tenants are looking
Employment for Financial Activities hung for more than 25,000 square feet, and there are
The Columbus office market consists between 71,400 to 71,800 workers from January 23 tenants looking for 10,000 up to 25,000
of 15 suburban submarkets plus the to May. Each month has been between 2.3 square feet of space.
Central Business District submarket. The percent and 2.7 percent higher than Finance
Columbus region features a total of 63 Market Activity Volume is the sum of the absolute
million square feet, 43.7 million of which
employment levels in January through May in
2011. Nationwide Insurance and JP Morgan value of each absorption change in the market,
is suburban.
Chase have been driving this employment growth and it tells us how much space was in transition
in 2012. in the quarter. The total amount of space in
transition was 888,000 square feet. The market
Professional and Business Services grew has picked up from first quarter in office leasing,
steadily from 147,500 employees in January to though activity is not as high as it has been in
154,000 in May. Employment levels in January years past when more than 1.3 million square
and February this year were 1.2 and 1.9 percent feet on average were in transition.
greater than the same months in 2011. Consistent
MARKET ACTIVITY
SALES ACTIVITY
PROPERTY ADDRESS SALES DATE SALE PRICE SIZE SF BUYER SELLER PRICE / SF TYPE SUBMARKET
41 S High Street 6/8/2012 $177,000,000.00 1,112,409 Huntington Center LLC Huntington Center Associates $195.00 A CBD
7800 Walton Parkway 6/4/2012 $13,333,000.00 86,312 CVG12 New Albany OH LLC Walton 605 LLC $154.47 A New Albany
2231 Schrock Road 4/25/2012 $4,700,000.00 41,656 Cole of Columbus Ohio Schrock Office Realty $112.82 B Worthington
570 Metro Place 6/26/2012 $2,100,000.00 32,000 Investment Grade Loan, Inc. 570 Metro Place North LP $61.35 B Dublin
3592 Corporate Drive 6/28/2012 $4,037,000.00 30,003 NCH12 Columbus OH LLC Omni Columbus One LLC $134.55 B Westerville
1335 Worthington Woods 4/23/2012 $1,200,000.00 24,144 A & J Rentals LLC McLeod Properties LLC $49.70 C Worthington
5957 Cleveland Avenue 5/4/2012 $1,250,000.00 17,911 HIS Property LLC Burton Terence W TR $69.78 B Westerville
81 S 5th Street 4/16/2012 $1,180,000.00 15,000 JEK Management Ltd 81 S 5th St LLC $78.66 C Capitol Square
LEASE ACTIVITY
PROPERTY ADDRESS SALES DATE LEASE SF TENANT ASKING PRICE (NNN) TYPE SUBMARKET
1 Easton Oval 6/14/2012 39,866 Residential Finance $12.95 A Easton
4689 Hilton Corporate Drive 4/1/2012 20,000 Connections Education $10.00 B East
5747 Perimeter Drive 5/22/2012 15,118 University of Dayton $8.95 B Dublin
4689 Hilton Corporate Drive 6/26/2012 14,586 National Charter School $10.00 B East
6460 Busch Boulevard 5/9/2012 11,897 Learning Never Ends, LLC $11.75 B Worthington
7540 Sawmill Parkway 5/18/2012 11,027 Childrens of America $14.00 B Powell
2400 Corporate Exchange Drive 5/1/2012 10,650 Wilkes Broadcast Group $14.50 B Westerville
P. 2 | COLLIERS INTERNATIONAL

3. RESEARCH & FORECAST REPORT | Q2 2012 | 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 19,358,350 2,048,195 10.6 48,968 54,622 251,000 - $19.89 $17.09
ARLINGTON/GRANDVIEW 4,752,155 626,851 13.2 44,819 8,105 - $21.36 $15.59
DUBLIN 9,501,878 1,266,673 13.3 (16,401) (54,536) - $18.80 $15.16
EAST 3,691,158 503,935 13.7 19,072 43,883 - $15.66 $14.97
EASTON 2,685,332 283,146 10.5 (116,057) (116,512) - $21.04 $22.00
GAHANNA/AIRPORT 1,262,031 127,404 10.1 3,634 21,910 - $16.99 $16.54
HILLIARD 2,480,456 472,440 19.0 16,784 5,835 - $19.95 $14.73
NEW ALBANY 1,935,789 153,354 7.9 29,274 29,274 50,000 - $18.73 -
NORTH CENTRAL 1,255,636 74,116 5.9 (4,561) (6,813) - - $13.68
POLARIS 4,419,869 267,398 6.0 (11,712) (35,872) - $19.36 $19.13
POWELL 273,719 60,302 22.0 235 (7,645) - - $15.77
SOUTHEAST 402,548 52,818 13.1 (1,250) (2,065) - - -
SOUTHWEST 236,158 43,987 18.6 (137) (6,216) - - $16.95
WESTERVILLE 4,489,479 651,263 14.5 (15,727) 10,852 - $16.31 $15.11
WORTHINGTON 6,296,402 934,215 14.8 35,804 63,215 - $16.88 $14.56
SUBURBAN TOTAL 43,682,610 5,517,902 12.6 (16,223) (46,585) 50,000 - $18.55 $15.10
TOTAL 63,051,662 7,566,097 12.0 32,745 8,037 301,000 0 $19.05 $15.67
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 26,082,781 2,850,863 10.9 (13,512) (20,580) 301,000 - $19.05
CLASS B 23,087,076 3,020,551 13.1 109,978 66,781 - $15.67
CLASS C 13,881,805 1,694,683 12.2 (63,721) (38,164) - $12.71
TOTALS 63,051,662 7,566,097 12.0 32,745 8,037 301,000 - $16.46
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
Q1, 2012 63,040,960 7,598,842 12.1 (22,230) (22,230) 301,000 140,000 $18.79 $15.57
Q4, 2011 63,040,314 7,632,767 12.1 252,351 732,831 190,000 - $18.61 $15.47
Q3, 2011 63,040,314 7,885,118 12.5 284,581 480,480 190,000 - $18.58 $15.41
Q2, 2011 62,900,314 8,169,699 13.0 202,803 195,899 190,000 - $18.25 $15.25
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 | Q2 2012 | OFFICE | GREATER COLUMBUS REGION
CENTRAL BUSINESS DISTRICT Never Ends, who leased 11,000 square feet at
6460 Busch Boulevard and Flairsoft, who leased
The CBD saw more than 48,000 square feet of
positive absorption. Many smaller leases were
7,000 square feet at 7720 Rivers Edge Drive. 522 offices in
completed at 65 East State, 130 Chestnut Street,
SOUTH MARKET
62 countries on
10 East Broad Street, and 585 Front Street for
more than 36,000 square feet of absorption. The south submarkets are the Southwest and 6 continents
Large leases included Safe Auto moving into the Southeast.
United States: 147
28,000 square feet at 175 South Third Avenue Canada: 37
and Colliers International moving into just less Very little change occurred in these submarkets Latin America: 19
than 11,000 square feet at Two Miranova Place. as these are among the smallest submarkets, Asia Pacific: 201
No significantly sized tenants vacated space. with little significant office space. EMEA: 118
• $1.8 billion in annual revenue
Nationwide Insurance began construction on EAST MARKET • 1.25 billion square feet under
their 200,000 square foot facility, where they management
The east submarkets are the East side, Easton,
will house the employees transferring into • Over 12,300 professionals
Gahanna/Airport and New Albany.
downtown from 5900 Parkwood Place in Dublin.
Nationwide Realty also began construction on a GREATER COLUMBUS REGION:
The East submarket saw 19,000 square feet of
new 51,000-square-foot, $10 million project.
positive absorption from a national charter Richard B. Schuen SIOR CCIM
Located at 425 W. Nationwide Blvd, the site will CEO | Principal | Columbus
school leasing 20,000 square feet of negative
be anchored by FBI. 2 Miranova
absorption at 4689 Hilton Corporate Drive.
Suite 900
WEST MARKET Columbus, Ohio 43215
The Easton submarket lost 116,000 square feet TEL +1 614 410 5612
The west submarkets are Arlington/Grandview this quarter with strong activity. Net Jets vacated
and Hilliard. 103,000 square feet at 4349 Easton Way and
McGraw Hill vacated 67,000 square feet at 4400 Leslie Hobbs
The Hilliard submarket saw positive absorption Director of Marketing | Ohio
Easton Commons. Positive absorption came
2 Miranova
of 16,000 square feet from smaller leases. from Residential Finance leasing 39,000 square Suite 900
feet at 1 Easton Oval and Abbott Labs leasing Columbus, Ohio 43215
Arlington/Grandview saw more than 44,000 9,000 square feet at 3435 Stelzer Road. TEL +1 614 410 5640
square feet of positive absorption. The Boy
Scouts of America leased 28,000 square feet at New Albany saw 29,000 square feet of positive
807 Kinnear Road. absorption from Healthscape, leasing more than Jonathan Schuen
Research Analyst
11,000 square feet at 5150 Dublin-Granville
2 Miranova
NORTH COLUMBUS MARKET Road, and Auto Owners and Maxwell Financial Suite 900
The north submarkets are Dublin, Powell, Polaris, leased space at 6530 Campus Oval for a total of Columbus, Ohio 43215
North Central, Worthington and Westerville. 7,000 square feet. TEL +1 614 437 4495
Dublin saw negative 16,000 square feet of space LANDLORD/TENANT
on the back of PICS Photoscan vacating 43,000 The types of tenants most seen in the market
square feet at 4150 Tuller Road and Century Link recently have been medical, call centers, higher
vacating 22,800 square feet at 6000 Parkwood education, and banking. Tenants have heard so
Place. Positive absorption came from Wendy’s much negativity from the media about the market
This document/email has been prepared by Colliers
International for advertising purposes. Colliers
leasing 28,000 square feet at 5555 Parkcenter that deals are extremely difficult to get done International statistics and data are audited annually and
Circle, University of Dayton leasing 15,000 because tenants .are hesitant to close deals out
may result in revisions to previously reported quarterly
and final year-end figures. Sources include Columbus
square feet at 5747 Perimeter Drive and Maguire of the fear of getting locked in at a bad rate. Dispatch, Business First, Xceligent, CoStar, Chain Store
& Schneider leasing 7,000 square feet at 555 Age, Wall Street Journal, Bureau of Labor Statistics,
Metro Place. The largest issue facing landlords is creating a
steady cashflow, especially for landlords who
Powell and North Central saw very little change. want to renegotiate their debt. Landlords are
Polaris and Westerville saw slight negative also challenged to get good financial analysis of
absorption from multiple smaller vacancies. tenants to understand tenant’s viability, as well
as the tenant credit risk with significant cost for
Worthington had 35,000 square feet of improvements when required.
absorption. Two notable leases were Learning
Accelerating success.
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