OFFICESMARKET STUDY

LISBON2014

COMPANIES’ MIGRATION

COMPANIES’ MIGRATION LISBON | 2014

The information contained in this brochure is a summary of the Lisbon Companies’ Migration Study 2014. For further information or to receive the detailed study, please contact Aguirre Newman Portugal.

Aguirre Newman has conducted a study into business mobility on the Lisbon office market for the fifth year in a row,this time for the years 2012 and 2013 in order to identify the office areas where companies are moving into,exhaustively detailing the take up over the last two years along with the office areas where these companies arecoming from.

We analysed 370 lease transactions, quantified occupied office areas, zones of origin and destination, as well as thedifferent companies' sectors of activity. We also identified the operations that involved an increase in area due to thecompanies’ structure growth and the operations that were first occupations such as start-ups.

We start this study with a description of Lisbon's Office Market based on information available from the Lisbon PrimeIndex (LPI) and the main conclusions for 2013 are shown below:

• The office area take-up of 77,802 m2 was 24% down on the figures for 2012.• There were 186 office lease transactions.• Out of all these operations, 116 trades were regarding areas of less than 300 m2.• Seven office buildings were completed with 30,9382 m2 of new office space.• There was a total of 4,555,823 m2 of office space• Another 6 office buildings are expected to be concluded in 2014 and 2015 raising the available space by another

51,750 m2

The Companies’ Migration Study involved 371 office lease operations with 185 in 2012 and 186 in 2013. The totalarea take-up was 179,777 m² (101,975 m² in 2012 and 77,802 m² in 2013).

The analysis was conducted taking into account three distinct perspectives:

• By the number of transactions - office operations in each destination zone, taking into account each of the OriginZones and office operations in the Destination Zones broken down by the contracted area (< 300 m²; 301 to800 m²; 801 to 1,500 m²; 1,501 to 3,000 m²; 3,001 to 5,000 m² and > 5,000 m²), in each of the OriginZones;

• By area leased - area of offices contracted in each Destination Zone, taking into account each of the OriginZones.

• By sector of activity - analysis of the office operations undertaken and the respective area contracted in eachDestination Zone, for each of the 10 sectors of activity defined in the LPI (Consultants and Lawyers; State;Europe and Associations; Pharmaceuticals and Health; Not identified; Other Services; Consumer Products;Service Companies; Financial Services; TMTs & Utilities and Construction and Real Estate)

Comparing the results from 2012 and 2013 regarding the area take-up (See Migratory Map), we concluded thefollowing:

• The area contracted in Destination Zone 1 (Prime CBD) in 2013 stayed in line with 2012 regarding the samekind of origin. We noted, however, a greater origin from the same zone and from the Activity Start-Up.

• The area contracted in Destination Zone 2 (CBD) in 2013 stayed in line with 2012 regarding the same kind oforigin. We noted , however, a greater origin from the Emerging Zone (zone 3) rather than the same zone.These numbers reflect the move of Sonaecom company to the Picoas Plaza building.

• The area contracted in Destination Zone 3 (Emerging Zone) in 2013 compared with 2012 shows a greater originwithin the same zone and from the Western Corridor (zone 6) rather than Prime CBD (zone 1) and CBD (zone2). These numbers reflect the move of Zon and CMVM to their respective head offices in 2012.

• The area contracted in Destination Zone 4 (Secondary Zone) in 2013 compared with 2012 shows a greaterorigin within the same zone rather than Prime CBD (zone 1).

• The area contracted in Destination Zone 5 (“Parque das Nações”) in 2013 comparedwith 2012 reflects a greater origin of companies that move from outside Lisbon and netset-ups, rather than the growth / expansion of existing companies (Structural Growth).These numbers reflect the move of EDP Soluções Comerciais to the Explorer building.

• The area contracted in Destination Zone 6 (West Corridor) in 2013 stayed in line with2012 regarding the same kind of origin. We noted, however, a greater origin from thesame zone rather than from Zone 7. These numbers reflect the move of Novartis to thePoente building in Tagus Park.

• The area contracted outside Destination Zones 1 to 6 (in 2013) compared with 2012shows a greater origin from CBD (zone 2) and the Emerging Zone (zone 3) rather thanPrime CBD (zone 1) and the same zone.

This study also let us come to the following conclusions about companies’ migration in theLisbon office market between 2012 and 2013.

1. Loyalty to the same Origin

We noticed that about 40% of the number of transactions (corresponding to 37% of theleased area) in 2012 and 37% of the number of transactions (corresponding to 31% of theleased area) in 2013 took place within the same Zone.

2. Contiguity Zone 1 (Prime CBD) / Zone 2 (CBD) / Zone 3 (Emerging Zone)

We noticed a trend for contiguous zones in company moves in 2012 and 2013, namelyconcerning the Zones 1 (Prime CBD), 2 (CBD) and 3 (Emerging Zone). This may beexplained by the fact that these three zones constitute a "geographic continuity" inside thecity of Lisbon, where the levels of accessibility and available services are in some waycomparable.

3. Weight of the Activity Start-Up Origin

We noticed that about 15% of the number of transactions (corresponding to 6% of theleased area) in 2012 and 25% of the number of transactions (corresponding to 15 % of theleased area) in 2013 were set-ups.

4. Number of transactions occurred in Destination Zones 1 to 6, with a similar Originmatrix in 2012 and 2013.

We conclude that the origin of the contracted area in each destination Zone 1 to 6 is similarin 2012 and 2013, except for the occupations of the ZON and CMVM head offices (in2012) and the Explorer, Picoas Plaza and Poente - Tagus Park buildings (in 2013).

5. Area requirements as decision factor in the move in 2013.

We conclude that 50% of the office lease transactions registered in 2013 correspond to anincrease in the occupied area compared with the previous occupation, i.e. half the numberof trades were moves from smaller offices to bigger offices and/or contracting additional areaat the same address.

TEJO RIVER

WESTERN CORRIDOR

RESTELO

ALCÂNTARA

CAIS do SODRÉ

AIRPORT

PARQUE das NAÇÕES

ESTRELA

CAMPOLIDE

AMOREIRAS

BENFICA

BAIXACHIADO

MONSANTO

Entrecampos

Praça deEspanha

Saldanha

Largo do Rato

Marquês de Pombal

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PRIME CBD

WESTERN CORRIDOR“PARQUE DAS NAÇÕES”

SECONDARY OFFICE ZONE

CBD

ACTIVITY START UP

ZONE 7

NO INFORMATIONSTRUCTURAL GROWTH

OUT of LISBON

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Av. Índia

Av. da Liberdade

Av. A. A. Aguiar

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Av. Marechal Gomes da Costa

Av. Berlim

Av. dos Estados Unidos da América

Av. Duque de Loulé

R. Joaquim A. Aguiar

Av. João XXI

Av. Brasil

Av. 5 de Outubro

Av. da República

R. Morais Soares

Av. das Forças Armadas

Radial de Benfica

ESTRELAESTRELA

CAMPOLIDECAMPOLIDE

AMOREIRASAMOREIRAS

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ZONE 1

TO

TA

Lsq

.m.

201243%30%

-9%

--

2%2%

11%2%2%

15.433

201361%8%1%

---

3%-

23%4%

-

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ZONE 2

TO

TA

Lsq

.m.

20128%

50%4%2%6%2%7%4%

16%-

1%

8.991

201315%16%53%

-3%4%4%

-4%1%

-

8.783

ZONE 3

TO

TA

Lsq

.m.

201227%45%7%

--

1%13%1%3%3%0%

29.876

2013-

27%27%

--

28%9%3%4%3%

-

6.465

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ZONE 4

TO

TA

Lsq

.m.

201264%

--

10%----

9%16%

-

3.128

20131%

--

46%-

3%1%

-21%28%

-

4.644

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ZONE 5

TO

TA

Lsq

.m.

20121%3%

-2%

34%2%

28%-

4%25%

-

15.423

20132%6%

--

24%4%

10%25%30%1%

-

15.754

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ZONE 6

TO

TA

Lsq

.m.

2012-

2%8%2%1%

70%10%0%3%0%4%

24.202

20135%4%

18%2%

-32%28%3%8%0%1%

27.255

ZONE 7

TO

TA

Lsq

.m

201265%

-----

29%-

1%4%1%

4.922

20138%

36%42%

-----

14%--

4.991

COMPANIES’ MIGRATION LISBON | 2014

EXPLANATORY NOTE

The present study i s based on the in forma-t ion provided by LPI index (L isbon Pr ime Index) , a Rea l Estate Index used to eva luate the L isbon of f ice market performance, regarding the volume of sq. m traded, the number of recorded transact ions and the Dest inat ion Off ice Zones ( in which the com-panies have leased new of f ice spaces) in the years 2012 and 2013.

For the ident i f icat ion of each transact ion’s or ig in , e leven categor ies of sources were cons idered:

•Off ice Zones 1 - 7

•Out of L isbon – companies who moved from outs ide the L isbon reg ion to one of the Off ice Zones 1 - 7

•Act iv i ty Start-Up – Start-up companies whose f i rst of f ice i s in the Dest inat ion Off ice Zone address for the transact ions ident i f ied

•Structura l Growth - increase of leased area through growth of the company structure, corresponding to new premises in the Dest i -nat ion Off ice Zones 1-7

•No Informat ion - cases where i t was not poss ib le to ident i fy the transact ion’s or ig in , due to insuf f ic ient in format ion regarding the corporate name of the company and / or the correct address of the Dest inat ion Off ice Zone - res idua l weight of less than 1%

Off ice Zone 7, according ly to LPI index, represents a l l o f f ices located outs ide the main zones, which corresponds geographi-ca l ly to a l l the areas of L isbon which are not with in zones 1 - 6 . In th is sense, of f ice tran-sact ions ana lyzed in th is report as hav ing occurred in Off ice Zone 7, correspond only to those reg istered by LPI index, and, we bel ieve, are not representat ive of a l l t ran-sact ions performed on the market outs ide zones 1-6.

AGUIRRE NEWMAN

Praça MArquês de Pombal, 16 - 7º | 1250-163 Lisbon

+351 21 313 9000

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