Mexico CityOffice Market Overview

1Q2016

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Key Facts

Transaction Services

Consulting & Advisory Services

Financial Services

Management Services

Corporate Services

Research & Client Services

Mexico CityGDP vs Gross Absorption

Mexico City A+&A Office Market Analysis

Inventory

First Quarter 2016

CBD

SBD

ABD

Total

Service Offerings

Lomas Palmas Polanco Reforma

Mexico City Office Submarkets

CBD

Economic Indicators

Total Population (Mexico)

2014 119 million

2015 122 million

GDP

2014 2.6%

2015 2.5%

Mexico Unemployment Rate

2014 4.3%

2015 4.6%

*Data in square meters

Mexico City A+&A Office Market

AvailabilityVacancy

RateGross

AbsorptionUSD / m2 /

month

SBDBosquesInterlomasLomas AltasSanta Fe

ABDInsurgentesNortePeriférico Sur

Activity Under Construction

2016e Deliveries

2017e Deliveries

UnderProject

2,179,500 256,900 11.8% 32,300 $32.1 253,500 130,800 547,800

58,800 3.7% 20,700 $23.0 70,900 285,600

190,100 13.9% $24.1

65,400

149,300 463,180

9.8% 118,700 $27.4 538,900 351,000 1,296,6005,147,600

1,597,300

1,370,800

505,800

65,700

2018e Deliveries

115,300

58,500

245,500

419,300

220,000

Historical Gross Absorption

• The total inventory at the end of 1Q 2016 was 5,147, 600 million square meters in class A + & A buildings , which means an increase of 1.9% compared to the end of 2015 and an increase of 20% compared to the same period of 1Q2015 .

• The total availability is 505,700 square meters, being the highest recorded since 2013.

• During the first quarter, gross demand where 118,800 square meters of which 29% where in the Insurgentes submarket (34,300m2).

• The vacancy rate showed an increase of 3% over the end of last year.

• Average rent prices showed a decrease during the first three months of 2016, this due to the large supply that exists in the office submarkets, however we estimate that these prices will increase in the coming months.

• The Lomas Palmas corridor shows the higher average rent price with US $ 33.5 / m2 / month and Interlomas is the lowest at US $ 18.4 per m2 per month since it does not have new spaces and buildings under construction.

• During 2015, more than 390,000 m2 finished its construction and is expected that during 2016 more than 630 thousand square meters will integrated to the office total inventory.

• Approximately 1.3 million square meters are under design.

Notable 1Q 2016 Lease Transactions

Sq. Mt. Lease Type Qtr. Tenant Building Submarket

Mexico City Market Overview (A&A+ Office Market)

Overall Vacancy Rate

Average Asking Rent USD / sq m / month

Secretaría de Economía Torre Reforma Latino Reforma 16,000 Relocation 1st

Mapfre Tepeyac Torre Evolución Insurgentes Sur 14,500 Relocation 1st

Comisión Reguladora de Energía Element Corporativo Periférico Sur 12,200 Relocation 1st

CCSI - Compucom GSC Insurgentes 1431 Insurgentes Sur 10,500 Relocation 1st

Centro Nacional de Control de Energía Magna Sur Periférico Sur 4,400 Expansion 1st

Servicios Broxel SAPI Torre Acuario Santa Fe 4,100 Relocation 1st

Iliosson Tecnoparque B Norte 4,000 Relocation 1st

Holcim Quad Campus Corp II Santa Fe 3,200 Relocation 1st

Online Career Center City Shops Valle Dorado Norte 2,700 Renewal 1st

Mexico City Office Market Statistics 1Q 2016

Mexico City Fisrt Quarter Totals

Inventory

5,147,600

Vacancy

9.8%

Vacancy

CBD

11.8%

Inventory

2,179,500

Vacancy

SBD

3.7%

Inventory

1,597,300

Vacancy

ABD

13.9%

Inventory

1,370,800

Historical Gross Absorption Class A+ & A

Q to Q - Market Indicators

Notable 1Q 2016 Lease Transactions (sq m)

Submarket Inventory Construction Pipeline Vacancy Rate Absorption Average Asking Rent Construction Activity

Buildings under Construction

CBD By Numbers

Total Inventory Vacancy Rate Average Asking Rent

CBD Office Overview 1Q2016Average Asking Rent Class A+ & A

Historical Vacancy Rate Class A+ & A

2016 1Q

617,900 10.3% $33.5

926,900 9.1% $31.0

Lomas Palmas

Polanco

Reforma 634,700 17.1% $31.6

Total 2,179,500 12.2% $32.1

2016 1Q 2016 1Q 2015 1Q

612,300

868,400

454,100

1,934,800

9.5%

5.7%

9.9%

8.4%

2015 1Q

$32.9

$34.3

$33.6

$33.6

2015 1Q

*Data in square meters

Secretaría de Economía Torre Reforma Latino

16,000 Relocation

Johnson & JohnsonTorre Reforma

2,300 Relocation

International Finance CorpTorre Reforma 2,200 Relocation

IZA Business Center Torre Concreta 2,000 Pre - lease

Mizuho Bank Torre NYL 1,800 Relocation

2014 2015 2016e 2017e

Lomas Palmas 71,500 6,600 10,500 18,000

Polanco 178,600 54,700 106,600 112,800

Reforma - 170,300 152,100 -

Total 250,100 231,600 269,200 130,800

2018e

8,800

49,700

56,900

115,400

One Marina Park 65,000 m2 - Torre Diana 64,000 m2 - Torre Reforma 40,200 m2 - Torre Cuarzo 40,000 m2 - Miyana Fase I 38,000m2 - Bayer 34,000 m2 - Torre del Ángel II 30,000 m2 - CityZite Polanco32,000 m2 - Latitud Polanco 29,000 m2 - Chapultepec UNO 27,000 m2 -CS169 19,000 m2 - Lago Alberto 375 18,000 m2 - Palmas 78118,000 m2 - Torre Concreta 11,000 m2 - Altezza II 9,000 m2 - Torre Ónix8,500 m2 - FC689 - 7,000 m2 - Qúbica 7,000 m2 - DEK 5,000 m2

Historical Gross Absorption Class A+ & A

Q to Q Market Indicators

Notable 1Q 2016 Lease Transactions (sq m)

Submarket Inventory Construction Pipeline Vacancy Rate Absorption Average Asking Rent Construction Activity

Buildings under Construction

SBD By Numbers

Total Inventory Vacancy Rate Average Asking Rent

SBD Office Overview 1Q2016Average Asking Rent Class A+ & A

Historical Vacancy Rate Class A+ & A

2015 1Q 2016 1Q

299,400 299,400 2.2% 3.3% $27.3 $26.8

99,900 99,900 4.3% 1.3% $21.7 $18.4

Bosques

Interlomas

Lomas Altas

Santa Fe

85,700 85,700 18.0% 14.9% $24.3 $23.3

Total 1,597,300 1,597,300 7.1% 5.7% $22.9 $23.0

2015 1Q 2016 1Q 2015 1Q 2016 1Q

1,112,300 1,112,300 4.0% 3.1% $23.0 $23.5

Servicios Broxel SAPI Torre Acuario

4,100 Relocation

HolcimQuad Campus Corp II

3,200 Relocation

NissanPunta Santa Fe A 1,700 Sub-Lease

Symantec Arcos Torre I 1,400 Renewal

México ProyectosCorporativo Blu 1,300 Relocation

Bosques - - - - -

Interlomas 7,000 - - - -

Lomas Altas - - - 4,500 -

Total 44,000 - 65,400 70,900 58,500

Santa Fe 37,000 - 66,400 58,500

2014 2015 2016e 2017e 2018e

65,400

Park Plaza Torre III 37,000 m2 - DownTown Santa Fe III 26,000 m2

- Quad Torre II 21,700 m2 - Torre Vasco de Quiroga 21,500 m2

- DownTown Santa Fe I 21,400 m2 - Corporativo Corner 19,100 m2

- Prolongación Reforma 627 14,400 m2 - Quad Torre I 11,800 m2 - Vascode Quiroga 621 7,800 m2 - Corporativo Vista Hermosa 5,600m2 - Corporativo DENN 4,400 m2 - Santa Fe Hills 4,100 m2

*Data in square meters

Historical Gross Absorption Class A+ & A

Q to Q Market Indicators

Notable 1Q 2016 Lease Transactions (sq m)

Submarket Inventory Construction Pipeline Vacancy Rate Absorption Average Asking Rent Construction Activity

Buildings under Construction

SBD By Numbers

Total Inventory Vacancy Rate Average Asking Rent

ABD Office Overview 1Q2016Average Asking Rent Class A+ & A

Historical Vacancy Rate Class A+ & A

2015 1Q 2016 1Q

565,800 659,000 3.4% 6.5% $28.0 $26.2

197,600 319,900 21.5% 41.3% $21.3 $20.9

Insurgentes

Norte

Periférico Sur 373,500 391,900 8.6% 3.7% $23.0 $25.1

Total 1,137,000 1,370,800 11.2% 17.2% $24.1 $24.1

2015 1Q 2016 1Q 2015 1Q 2016 1Q

*Data in square meters

Mapfre Tepeyac Torre Evolución

14,500 Relocation

Comisión Reguladora de EnergíaTorre Element 12,200 Relocation

CCSI-Compucom GSC Insurgentes 1431

10,500 Relocation

Centro Nacional de Control de Energía Magna Sur

4,400 Expansion

Iliosson TecnoParque B

4,000 Relocation

2014 2015 2016e 2017e 2018e

93,100 59,500 75,500 87,000

41,700 143,100 -

24,900 97,600 73,800

113,600

44,800

-T otal 109,400 159,700 300,200 149,300 245,400

66,500

24,400

Insurgentes

Norte

Periférico Sur 18,500

Gran Patio Revolución 80,000 m2 - Toreo Torre A 62,900 m2 - Torre Skala 47,500 m2 - Centro Insurgentes Reforma 46,000 m2 - Torre Manacar 46,000 m2 - Carracci 44,400 m2 - Artz Pedregal 1 y II 29,300 m2 - Ford Nasa 36,000 m2 - Corp. Jaime Nuno 33,100 m2 - Torre Cuatro Caminos 30,100 m2 - Insurgentes 929 26,500 m2 - Alfonso Caso 26,300 m2 - IS 1431 25,000 m2 - Corp. Pedregal 3042 22,400 m2 - Torre Boston 21,500 m2 - News Pedregal 18,500 m2 - Insurgentes 700 15,000 m2 - Torre Evolución 12,400 m2 - SJ 2950 12,000 m2 - Insur 1425 11,100 m2 - Distrito Sur 8,300 m2 - Corp. Enlace 6,300 m2

© 2016 Avison Young Commercial Real Estate (Ontario) Inc., Brokerage

E. & O.E.: The information contained herein was obtained from sources which we deem reliable and, while thought to be correct, is not guaranteed by Avison Young.Acknowledgement: Data for graphs, charts and tables used in this report are sourced from Avison Young and Altus InSite. Some of the data in this report has been gathered from third party sources and has not been independently verified by Avison Young. Avison Young makes no warranties or representations as to the completeness or accuracy thereof.

avisonyoung.comFor more information on this report, please contact Avison Young:

Tania Sánchez

Market Research Director México

Avison Young MéxicoProlongación Paseo de la Reforma No. 1015 Piso 4 Torre A Santa FeT 55.4123.7576 M 55.4835.1720