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Bank of America Merrill Lynch – Around the Horn Quarterly Office Market Call October 13, 2011.

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Bank of America Merrill Lynch – Around the Horn Quarterly Office Market Call October 13, 2011
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Page 1: Bank of America Merrill Lynch – Around the Horn Quarterly Office Market Call October 13, 2011.

Bank of America Merrill Lynch –

Around the Horn Quarterly Office Market Call

October 13, 2011

Page 2: Bank of America Merrill Lynch – Around the Horn Quarterly Office Market Call October 13, 2011.

National Office Absorption, New Supply & Vacancy Rate (Million SF & %)

0

2

4

6

8

10

12

14

16

18

-30.0

-20.0

-10.0

0.0

10.0

20.0

30.0

40.0

Q1 -05

Q2

Q3

Q4 Q1 -06

Q2

Q3

Q4 Q1 -07

Q2

Q3

Q4 Q1 -08

Q2

Q3

Q4 Q1 -09

Q2

Q3

Q4 Q1 -10

Q2

Q3

Q4 Q1 -11

Q2

Q3

Absorption New Supply Vacancy Rate - RHS

Page 3: Bank of America Merrill Lynch – Around the Horn Quarterly Office Market Call October 13, 2011.

Boston CBD Office Absorption, New Supply & Vacancy Rate (Million SF & %)

0

2

4

6

8

10

12

14

16

18

-1.0

-0.8

-0.6

-0.4

-0.2

0.0

0.2

0.4

0.6

0.8

1.0

Q1 -05

Q2

Q3

Q4

Q1 -06

Q2

Q3

Q4

Q1 -07

Q2

Q3

Q4

Q1 -08

Q2

Q3

Q4

Q1 -09

Q2

Q3

Q4

Q1 -10

Q2

Q3

Q4

Q1 -11

Q2

Q3

Absorption New Supply Vacancy Rate - RHS

Page 4: Bank of America Merrill Lynch – Around the Horn Quarterly Office Market Call October 13, 2011.

Boston Suburban Office Absorption, New Supply & Vacancy Rate (Million SF & %)

0

2

4

6

8

10

12

14

16

18

20

22

24

26

-1.5

-1.0

-0.5

0.0

0.5

1.0

1.5

2.0

Q1 -05

Q2

Q3

Q4

Q1 -06

Q2

Q3

Q4

Q1 -07

Q2

Q3

Q4

Q1 -08

Q2

Q3

Q4

Q1 -09

Q2

Q3

Q4

Q1 -10

Q2

Q3

Q4

Q1 -11

Q2

Q3

Absorption New Supply Vacancy Rate - RHS

Page 5: Bank of America Merrill Lynch – Around the Horn Quarterly Office Market Call October 13, 2011.

Northern New Jersey Office Absorption, New Supply & Vacancy Rate (Million SF & %)

0

2

4

6

8

10

12

14

16

-2.0

-1.5

-1.0

-0.5

0.0

0.5

1.0

1.5

Q1 -05

Q2

Q3

Q4

Q1 -06

Q2

Q3

Q4

Q1 -07

Q2

Q3

Q4

Q1 -08

Q2

Q3

Q4

Q1 -09

Q2

Q3

Q4

Q1 -10

Q2

Q3

Q4

Q1 -11

Q2

Q3

Absorption New Supply Vacancy Rate - RHS

Page 6: Bank of America Merrill Lynch – Around the Horn Quarterly Office Market Call October 13, 2011.

Central New Jersey Office Absorption, New Supply & Vacancy Rate (Million SF & %)

0

2

4

6

8

10

12

14

16

18

-1.0

-0.5

0.0

0.5

1.0

1.5

2.0

Q1 -05

Q2

Q3

Q4

Q1 -06

Q2

Q3

Q4

Q1 -07

Q2

Q3

Q4

Q1 -08

Q2

Q3

Q4

Q1 -09

Q2

Q3

Q4

Q1 -10

Q2

Q3

Q4

Q1 -11

Q2

Q3

Absorption New Supply Vacancy Rate - RHS

Page 7: Bank of America Merrill Lynch – Around the Horn Quarterly Office Market Call October 13, 2011.

Philadelphia CBD Office Absorption, New Supply & Vacancy Rate (Million SF & %)

0

2

4

6

8

10

12

14

16

-1.0

-0.5

0.0

0.5

1.0

1.5

Q1 -05

Q2

Q3

Q4

Q1 -06

Q2

Q3

Q4

Q1 -07

Q2

Q3

Q4

Q1 -08

Q2

Q3

Q4

Q1 -09

Q2

Q3

Q4

Q1 -10

Q2

Q3

Q4

Q1 -11

Q2

Q3

Absorption New Supply Vacancy Rate - RHS

Page 8: Bank of America Merrill Lynch – Around the Horn Quarterly Office Market Call October 13, 2011.

Philadelphia Suburban Office Absorption, New Supply & Vacancy Rate (Million SF & %)

0

2

4

6

8

10

12

14

16

18

-1.0

-0.5

0.0

0.5

1.0

1.5

2.0

Q1 -05

Q2

Q3

Q4

Q1 -06

Q2

Q3

Q4

Q1 -07

Q2

Q3

Q4

Q1 -08

Q2

Q3

Q4

Q1 -09

Q2

Q3

Q4

Q1 -10

Q2

Q3

Q4

Q1 -11

Q2

Q3

Absorption New Supply Vacancy Rate - RHS

Page 9: Bank of America Merrill Lynch – Around the Horn Quarterly Office Market Call October 13, 2011.

Washington DC CBD Office Absorption, New Supply & Vacancy Rate (Million SF & %)

0

2

4

6

8

10

12

14

-0.5

0.0

0.5

1.0

1.5

2.0

2.5

Q1 -05

Q2

Q3

Q4

Q1 -06

Q2

Q3

Q4

Q1 -07

Q2

Q3

Q4

Q1 -08

Q2

Q3

Q4

Q1 -09

Q2

Q3

Q4

Q1 -10

Q2

Q3

Q4

Q1 -11

Q2

Q3

Absorption New Supply Vacancy Rate - RHS

Page 10: Bank of America Merrill Lynch – Around the Horn Quarterly Office Market Call October 13, 2011.

Washington Suburban Office Absorption, New Supply & Vacancy Rate (Million SF & %)

0

2

4

6

8

10

12

14

16

-2.0

-1.0

0.0

1.0

2.0

3.0

4.0

Q1 -05

Q2

Q3

Q4

Q1 -06

Q2

Q3

Q4

Q1 -07

Q2

Q3

Q4

Q1 -08

Q2

Q3

Q4

Q1 -09

Q2

Q3

Q4

Q1 -10

Q2

Q3

Q4

Q1 -11

Q2

Q3

Absorption New Supply Vacancy Rate - RHS

Page 11: Bank of America Merrill Lynch – Around the Horn Quarterly Office Market Call October 13, 2011.

Atlanta CBD Office Absorption, New Supply & Vacancy Rate (Million SF & %)

0

2

4

6

8

10

12

14

16

18

20

-0.6

-0.4

-0.2

0.0

0.2

0.4

0.6

0.8

1.0

Q1 -05

Q2

Q3

Q4

Q1 -06

Q2

Q3

Q4

Q1 -07

Q2

Q3

Q4

Q1 -08

Q2

Q3

Q4

Q1 -09

Q2

Q3

Q4

Q1 -10

Q2

Q3

Q4

Q1 -11

Q2

Q3

Absorption New Supply Vacancy Rate - RHS

Page 12: Bank of America Merrill Lynch – Around the Horn Quarterly Office Market Call October 13, 2011.

Atlanta Suburban Office Absorption, New Supply & Vacancy Rate (Million SF & %)

0

2

4

6

8

10

12

14

16

18

20

-1.0

-0.5

0.0

0.5

1.0

1.5

2.0

Q1 -05

Q2

Q3

Q4

Q1 -06

Q2

Q3

Q4

Q1 -07

Q2

Q3

Q4

Q1 -08

Q2

Q3

Q4

Q1 -09

Q2

Q3

Q4

Q1 -10

Q2

Q3

Q4

Q1 -11

Q2

Q3

Absorption New Supply Vacancy Rate - RHS

Page 13: Bank of America Merrill Lynch – Around the Horn Quarterly Office Market Call October 13, 2011.

San Francisco CBD Office Absorption, New Supply & Vacancy Rate (Million SF & %)

0

2

4

6

8

10

12

14

16

-1.0

-0.8

-0.6

-0.4

-0.2

0.0

0.2

0.4

0.6

0.8

1.0

1.2

Q1 -05

Q2

Q3

Q4

Q1 -06

Q2

Q3

Q4

Q1 -07

Q2

Q3

Q4

Q1 -08

Q2

Q3

Q4

Q1 -09

Q2

Q3

Q4

Q1 -10

Q2

Q3

Q4

Q1 -11

Q2

Q3

Absorption New Supply Vacancy Rate - RHS

Page 14: Bank of America Merrill Lynch – Around the Horn Quarterly Office Market Call October 13, 2011.

Los Angeles CBD Office Absorption, New Supply & Vacancy Rate (Million SF & %)

0

5

10

15

20

25

-0.6

-0.4

-0.2

0.0

0.2

0.4

0.6

0.8

1.0

1.2

Q1 -05

Q2

Q3

Q4

Q1 -06

Q2

Q3

Q4

Q1 -07

Q2

Q3

Q4

Q1 -08

Q2

Q3

Q4

Q1 -09

Q2

Q3

Q4

Q1 -10

Q2

Q3

Q4

Q1 -11

Q2

Q3

Absorption New Supply Vacancy Rate - RHS

Page 15: Bank of America Merrill Lynch – Around the Horn Quarterly Office Market Call October 13, 2011.

Los Angeles Suburban Office Absorption, New Supply & Vacancy Rate (Million SF & %)

0

2

4

6

8

10

12

14

16

18

20

-3.0

-2.5

-2.0

-1.5

-1.0

-0.5

0.0

0.5

1.0

1.5

2.0

Q1

-05

Q2

Q3

Q4

Q1

-06

Q2

Q3

Q4

Q1

-07

Q2

Q3

Q4

Q1

-08

Q2

Q3

Q4

Q1

-09

Q2

Q3

Q4

Q1

-10

Q2

Q3

Q4

Q1

-11

Q2

Q3

Absorption New Supply Vacancy Rate - RHS

Page 16: Bank of America Merrill Lynch – Around the Horn Quarterly Office Market Call October 13, 2011.

San Diego CBD Office Absorption, New Supply & Vacancy Rate (Million SF & %)

0

2

4

6

8

10

12

14

16

18

20

22

-0.3

-0.2

-0.1

0.0

0.1

0.2

0.3

0.4

0.5

Q1 -05

Q2

Q3

Q4

Q1 -06

Q2

Q3

Q4

Q1 -07

Q2

Q3

Q4

Q1 -08

Q2

Q3

Q4

Q1 -09

Q2

Q3

Q4

Q1 -10

Q2

Q3

Q4

Q1 -11

Q2

Q3

Absorption New Supply Vacancy Rate - RHS

Page 17: Bank of America Merrill Lynch – Around the Horn Quarterly Office Market Call October 13, 2011.

San Diego Suburban Office Absorption, New Supply & Vacancy Rate (Million SF & %)

0

2

4

6

8

10

12

14

16

18

20

-0.8

-0.6

-0.4

-0.2

0.0

0.2

0.4

0.6

0.8

1.0

1.2

Q1

-05

Q2

Q3

Q4

Q1

-06

Q2

Q3

Q4

Q1

-07

Q2

Q3

Q4

Q1

-08

Q2

Q3

Q4

Q1

-09

Q2

Q3

Q4

Q1

-10

Q2

Q3

Q4

Q1

-11

Q2

Q3

Absorption New Supply Vacancy Rate - RHS

Page 18: Bank of America Merrill Lynch – Around the Horn Quarterly Office Market Call October 13, 2011.

Office Investment Sales ($ Billions)

$0

$5

$10

$15

$20

$25

$30

$35

$40

$45

Q1 -01

Q2

Q3

Q4

Q1 -02

Q2

Q3

Q4

Q1 -03

Q2

Q3

Q4

Q1 -04

Q2

Q3

Q4

Q1 -05

Q2

Q3

Q4

Q1 -06

Q2

Q3

Q4

Q1 -07

Q2

Q3

Q4

Q1 -08

Q2

Q3

Q4

Q1 -09

Q2

Q3

Q4

Q1 -10

Q2

Q3

Q4

Q1 -11

Q2

Q3*

CBD Suburban

* Q3 – 11 to August only

Page 19: Bank of America Merrill Lynch – Around the Horn Quarterly Office Market Call October 13, 2011.

Office Capitalization Rates, %

4.0

5.0

6.0

7.0

8.0

9.0

10.0

11.0

Q1 -01

Q2

Q3

Q4 Q1 -02

Q2

Q3

Q4 Q1 -03

Q2

Q3

Q4 Q1 -04

Q2

Q3

Q4 Q1 -05

Q2

Q3

Q4 Q1 -06

Q2

Q3

Q4 Q1 -07

Q2

Q3

Q4 Q1 -08

Q2

Q3

Q4 Q1 -09

Q2

Q3

Q4 Q1 -10

Q2

Q3

Q4 Q1 -11

Q2

CBD Suburban

* Q3 – 11 to August only


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