bank of america merrill lynch – around the horn quarterly office market call october 13, 2011
TRANSCRIPT
![Page 1: Bank of America Merrill Lynch – Around the Horn Quarterly Office Market Call October 13, 2011](https://reader035.vdocument.in/reader035/viewer/2022062620/551a60c4550346545e8b5b19/html5/thumbnails/1.jpg)
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](https://reader035.vdocument.in/reader035/viewer/2022062620/551a60c4550346545e8b5b19/html5/thumbnails/2.jpg)
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](https://reader035.vdocument.in/reader035/viewer/2022062620/551a60c4550346545e8b5b19/html5/thumbnails/3.jpg)
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](https://reader035.vdocument.in/reader035/viewer/2022062620/551a60c4550346545e8b5b19/html5/thumbnails/4.jpg)
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](https://reader035.vdocument.in/reader035/viewer/2022062620/551a60c4550346545e8b5b19/html5/thumbnails/5.jpg)
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](https://reader035.vdocument.in/reader035/viewer/2022062620/551a60c4550346545e8b5b19/html5/thumbnails/6.jpg)
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](https://reader035.vdocument.in/reader035/viewer/2022062620/551a60c4550346545e8b5b19/html5/thumbnails/7.jpg)
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](https://reader035.vdocument.in/reader035/viewer/2022062620/551a60c4550346545e8b5b19/html5/thumbnails/8.jpg)
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](https://reader035.vdocument.in/reader035/viewer/2022062620/551a60c4550346545e8b5b19/html5/thumbnails/9.jpg)
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](https://reader035.vdocument.in/reader035/viewer/2022062620/551a60c4550346545e8b5b19/html5/thumbnails/10.jpg)
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](https://reader035.vdocument.in/reader035/viewer/2022062620/551a60c4550346545e8b5b19/html5/thumbnails/11.jpg)
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](https://reader035.vdocument.in/reader035/viewer/2022062620/551a60c4550346545e8b5b19/html5/thumbnails/12.jpg)
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](https://reader035.vdocument.in/reader035/viewer/2022062620/551a60c4550346545e8b5b19/html5/thumbnails/13.jpg)
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](https://reader035.vdocument.in/reader035/viewer/2022062620/551a60c4550346545e8b5b19/html5/thumbnails/14.jpg)
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](https://reader035.vdocument.in/reader035/viewer/2022062620/551a60c4550346545e8b5b19/html5/thumbnails/15.jpg)
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](https://reader035.vdocument.in/reader035/viewer/2022062620/551a60c4550346545e8b5b19/html5/thumbnails/16.jpg)
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](https://reader035.vdocument.in/reader035/viewer/2022062620/551a60c4550346545e8b5b19/html5/thumbnails/17.jpg)
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](https://reader035.vdocument.in/reader035/viewer/2022062620/551a60c4550346545e8b5b19/html5/thumbnails/18.jpg)
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
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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
![Page 20: Bank of America Merrill Lynch – Around the Horn Quarterly Office Market Call October 13, 2011](https://reader035.vdocument.in/reader035/viewer/2022062620/551a60c4550346545e8b5b19/html5/thumbnails/20.jpg)
For further information, please contact –National - [email protected] Atlanta - [email protected] – [email protected] Angeles – [email protected] Jersey – [email protected] – [email protected] Diego – [email protected] Francisco – [email protected], DC – [email protected] Investment – [email protected]