research & 113 - colliers internationalmarket trends relative to prior period q4 2016 q1 2017*...

Research & Forecast Report

Downtown Oakland’s Office Market Evolution

Summary Statistics Oakland Office Market

Previous Quarter

Current Quarter

Overall Vacancy 8.1% 6.9%Net Absorption -185,027 384,357Construction Completed - -Under Construction - -Overall Asking Rents $3.07 $2.91 Class A Asking Rents $3.91 $3.93 Class B/C Flex Asking Rents $2.82 $2.66 *Asking Rents Reported Monthly

U.S. National Economic IndicatorsUnemployment Rate 5.0% 4.7%Labor Force Participation Rate 62.9% 62.7%Consumer Price Index 2.41% 2.41%Interest Rate - 10 Yr Treasury 1.60% 2.45%Business Confidence 99.30% 99.90%Consumer Confidence 104.10% 113.70%* Data Source: EDD Labor Market Information Division

> Leasing activity: 2,217,582 square feet year to date

> Vacancy: 6.9 percent compared to 8.1 percent last quarter

> Net absorption: 384,357 square feet

President-elect Trump's surprise victory in November, economic uncertainty surrounding anticipated policy changes of the incoming Administration, a higher interest rate environment, and continued job market growth largely colored the national headlines during the home stretch of 2016.

The office market is expected to benefit from anticipated pro-business measures including lower taxes and less regulation – however, the repeal of the Affordable Care Act is estimated to potentially cause the loss of millions of jobs. As labor markets are one of the most important drivers of commercial real estate leasing fundamentals, this could counterbalance any positive effects. Adding even more uncertainty, the national economy may stumble from a shift away from globalization.

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Vacancy vs. Asking Full Service Rental RatesOakland Metropolitan Area | All Classes

Vacancy Rate Average Asking Rent

Overall vacancy decreased by 1.2% in the fourth quarter of 2016; rental rates decreased slightly from $3.07 to $2.91. Following the slight decrease from third quarter to fourth quarter, we expect rents to stabilize with the potential of a moderate increase. Overall vacancy rate should remain low and stable, as has been the trend for the past several quarters.

2.45

113.7

10-Year Nominal

Interest Rate

Unemployment Rate

4.7%

2.45

2.45

113.7

10-Year Nominal

Interest Rate

Unemployment Rate

4.7%

2.45

Market IndicatorsUnited States

Unemployment Rate10-Year Nominal

Interest RateConsumer Confidence

2.45

113.7

10-Year Nominal

Interest Rate

Unemployment Rate

4.7%

2.45

Market Trends Relative to prior period Q4 2016 Q1 2017*

Vacancy

Rental Rate

Net Absorption

Construction

*Projected

OAKLAND METROPOLITAN AREA OFFICEQ4 2016

If this is painting a dim picture of the economy, it should be noted that any predictions depend on the extent with which the Trump administration follows through on his proposals. As it stands, the Federal Reserve raised interest rates – the second time in a decade – in December, signaling confidence in an improving U.S. economy.

Regionally, the economy of Oakland is outperforming the nation’s. According to Colliers’ data, tenants relocating from more expensive markets in the Bay Area into Oakland accounted for at least 390,000 square feet of office absorption in 2016, underscoring an established trend that has helped lower unemployment and spur both residential and commercial construction.

As of October 2016, 2,002 residential housing units, mostly market-rate, were under construction, whereas only 917 market-rate units were completed since 2010. New supply will help relieve a housing affordability crisis, where new development impact fees and opposition from environmental organizations and community groups have stymied Oakland’s residential construction pipeline, all while newly-arrived employers look to attract a local workforce limited in size by a lack of housing supply.

On the commercial side, ground up office construction continues to be a non-starter, as rents are not yet high enough to justify construction of new buildings. In addition, the lead time for larger ground up construction projects makes it difficult to secure anchor tenants, which in many instances are tech companies seeking to take space right away. The market has adapted accordingly as shown by the renovations of older Class B spaces, which are more financially feasible, take less time to complete, and provide the high ceilings and large floor plates that tech and creative startups often favor.

Such is the demand for Class B space that the gap between Class A and Class B rents is quickly closing, with some market observers noting that creative Class B space is the new Class A. In San Francisco, this has materialized, with Class B rents surpassing those of Class A.

Looking ahead, much of the attention surrounds the repositioning of buildings that have recently been sold. These include 313,000 square feet of office at 1330 Broadway by TMG Partners, 350,000 square feet at Uber at Uptown by Uber and Lane Partners, and 235,000 square feet of office at 2150 Webster by Lane Partners, much of which is expected to be converted into creative office space for tech companies. Lane Partners also unveiled plans for a 1.3 million square foot project, the Eastline, a block away from Uber's future Oakland office, which would deliver 800,000 square feet of commercial space. With the groundwork being laid for new development and strategic revamping of existing space, all signs point to another exciting year in 2017.

2 Oakland Research & Forecast Report | 2016 Q4 | Office | Colliers International

West Berkeley witnessed a small jump in vacancy, but overall vacancy rates are expected to remain low due to a lack of product in a tight market. Class A is up to $3.50 per square foot per month full service (FS), while overall rents for Berkeley are similar to those in neighboring markets and expected to climb in the next six months due to lack of product.

Overall vacancy for the Downtown Berkeley submarket is 1.4 percent compared to 2.6 percent in the third quarter of 2016, while Class A vacancy decreased from 3.1 percent to 1.5 percent. West Berkeley saw overall vacancy rates decrease from 20.8 percent to 20.5 percent with five creative and flex spaces totaling just over 240,000 square feet at the Marchant Building contributing to a majority of the vacancy.

Notable lease transactions include software company Bonsai AI, Inc., which took 10,280 square feet of office space at 2150 Shattuck, directly above the Downtown Berkeley BART Station. Also, the Berkeley Center Building at 2000 Center Street leased two floors to two different schools, and remains a mecca for education users.

San Francisco-based Soma Capital Partners sold a 49,390 square foot office/retail building, the Berkeley Tower, at 2120 University Avenue for $22.25 million to Houston’s Lionstone Investments, gathering a healthy return on its initial investment after owning the building for almost three years and transforming it into a core asset. WeWork now occupies 90 percent of the property with a lease not set to expire until February of 2035.

Apartment construction continues to dominate the market: Read Investments broke ground at 2001 4th Street on 152 units and Shorenstein is slated to begin construction on 170 units at 1500 San Pablo Avenue in the third quarter of 2017, with completion expected in late 2019. The Berkeley Residences, which would potentially be the tallest building built in Berkeley since 1969, cleared another hurdle when a superior court judge threw out legal challenges against the development in October, though it does not yet have a construction start date.

Many of these housing developments are reducing the potential size of the commercial market and limiting supply and net absorption of office product, keeping rents high. While this benefits landlords listing available space, lack of supply is forcing tenants to move to outlying markets with higher rents and less attractive public transit options. Zoning in West Berkeley continues to hamper any development and true generation of jobs, which was the goal of the West Berkeley plan. Meanwhile, major political changes are in the winds with the election of new mayor Jesse Arreguin, who is less development friendly.

Atlanta-based Jamestown broke ground on a 22,500 square foot mixed-use development at 4th and Hearst, which may bring some relief when it delivers 12,000 square feet of flexible design office space and multiple retail spaces in the spring of 2017.

Berkeley

$1.70$1.87$2.03$2.20$2.37$2.53$2.70$2.87$3.03$3.20$3.37$3.53$3.70

0%3%5%8%

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Vacancy vs. Asking Full Service Rental RatesWest Berkeley | All Classes

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Vacancy vs. Asking Full Service Rental RatesDowntown Berkeley | All Classes



Emeryville's overall vacancy rate dropped from 11.3 percent to 8.4 percent from the third quarter, registering strong positive quarterly net absorption of 126,661 square feet. Class A vacancy decreased dramatically from 11.3 percent to 6.2 percent quarter over quarter with the absorption of space at The Towers, 5980 Horton Street, and 6001 Shellmound Street. Class B/C remained relatively stable with an increase of just 0.6 percent, finishing the year with negative 6,755 square feet of net absorption year to date (YTD). Overall, total YTD net absorption this year saw a slowdown, with 45,248 square feet absorbed compared to 294,753 square feet absorbed at the same time in 2015.

Notable lease transactions in the quarter include SurveyMonkey's sublease of 37,982 square feet from LeapFrog Enterprises at 6401 Hollis Avenue and 23,410 square feet of space taken at 2000 Powell Street.

Hyatt Place Hotel, the first new hotel built in Emeryville since 2001, had its grand opening in November of 2016 and is expected to add $585,000 to the tax base in fiscal year 2016-2017 and $1,300,000 in 2017-2018. Much of the ongoing construction is mixed-use retail and apartment projects, with anticipated major developments for the city's fiscal years 2016-2018 projected to consist mostly of more residential units, retail, and parking spaces.

One exception is Wareham Development's nine-story commercial high rise project, EmeryStation West, which is expected to deliver 260,000 square feet of office and research labs by the end of 2017.

Asking gross rents are expected to be north of $5.00 per square foot per month. Wareham, confident of a tight life science market and growing rents, is moving forward on development without any tenants, just as it did last year in Berkeley with 740 Heinz Avenue, now fully leased by drug company Aduro. Upon completion, the EmeryStation West project will be one of the biggest additions to the East Bay’s skyline in over a decade, the tenth high-rise structure in Emeryville (as defined by building code), and one of the only major ground-up office construction projects – along with 740 Heinz and 5800 Hollis Street in Emeryville – completed in Oakland, Berkeley or Emeryville since 2009.

Emeryville

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Vacancy vs. Asking Full Service Rental RatesEmeryville | Class A

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Vacancy vs. Asking Full Service Rental Rates

Emeryville | Classes B and C


6401-6485 HOLLIS STREET, SUITE 100, EMERYVILLE

SurveyMonkey's sublease of 37,982 square feet from LeapFrog Enterprises


Downtown OaklandClass A vacancy rates edged up from 2.1 percent in September to 2.2 percent in November due to tenants leaving spaces after year-end lease expirations. The jump reflects the difficulty in pre-leasing occupied space, even with strong demand and up to nine months of marketing before tenant move-out dates. Vacancy rates promptly fell back to 2.0 percent by year end as soon as newly vacant spaces were readily available to be toured and moved into.

Class A Full Service (FS) asking rates ticked up from $4.20 to $4.21 per square foot per month, driven mostly by second tier Class A buildings as FS rents for higher-end Class A buildings have stayed relatively flat over the past year. Rents are higher than surrounding areas and existing tenants are beginning to tour surrounding submarkets, but we have yet to see true migration out of Oakland. Class A rates are expected to rise incrementally in the first half of 2017 – however, low vacancy and deal velocity limit the number of transactions that can keep up with rising rates.

Even with demand for large blocks of space from tenants from San Francisco and medium blocks of space (2,000 to 20,000 square feet) from tenants within Oakland, it is difficult to have more leasing activity than what we have now without more available space. Currently, sales and repositioning of older Class B buildings into creative space have played a more prominent role in market activity.

Bentall Kennedy bought the 116,056 square foot Latham Square Building in Oakland for $47 million, or $404 per square foot, on an all-cash basis from Ridge Capital Investors and Contrarian Capital Management. Since Ridge Capital and Contrarian Capital owned the asset in 2014, they have repositioned 40,000 square feet into creative space demanding some of the highest creative office rents in Oakland.

Just a few blocks south, TMG Partners showcased 100,000 square feet of available office space and ongoing renovations in the 313,000 square foot 1330 Broadway office building. Further off in the horizon, TMG Partners is also planning to redevelop the nine-story Douglas parking garage at 420 13th Street into over 54,000 square feet of office space with a brand new façade.

Anticipated growth and interest in the Oakland market is further reflected by Lane Partners’ pitch to the city to develop a 1.3 million square foot mixed-use project, the Eastline, at 2100 Telegraph Avenue. With construction scheduled to start in 2018, the project will help usher in the next chapter for Uptown by creating up to 4,600 jobs in its office, retail, and community space. As we wait for the mega-project, Lane Partners will provide another new tech destination in 2018 upon redevelopment of 2150 Webster Street, a 235,000 square foot office property previously owned and occupied by AT&T.

By January of 2017, residents are expected to move into the first completed buildings of the Brooklyn Basin, a 65-acre waterfront neighborhood east of the Lake Merritt Channel and south of I-880, with easy access to Downtown Oakland. The project will create 3,100 housing units, add 200,000 square feet of retail, and provide millions in annual tax revenue for the city. With the groundwork currently being laid out for a revamp of existing office space into creative tech space and brownfield/infill into residential accommodation, we remain optimistic about the outlook for the city in the new year and beyond.

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Vacancy vs. Asking Full Service Rental RatesDowntown Oakland | Class A

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Vacancy vs. Asking Full Service Rental RatesDowntown Oakland | Classes B and C

1611 TELEGRAPH AVENUE, OAKLAND

Bentall Kennedy bought the 116,056 square foot Latham Square Building in Oakland for $47 million, or $404 per square foot.


The overall vacancy rate at the Oakland Airport was 10.6 percent, dropping by 2.0 percent from the third quarter with the help of the owner-user sale of 80 Swan Way to furniture company Zuo Modern Contemporary. South Oakland continues to draw in tenants that are being pushed out of the pricier and tighter Downtown Oakland area, but has yet to attract any major attention from tenants in San Francisco. Migration from north Oakland will continue to put downward pressure on vacancy rates over the next six months.

The overall full service (FS) asking rate ended the year at $1.71 per square foot per month, up slightly from the third quarter but quite higher than the $1.46 figure during the fourth quarter of 2015. Over the next six months, we expect asking rates to stay relatively stable. One noteworthy lease transaction this quarter was the lease of 28,579 square feet of space on the second floor at 8000 Edgewater Drive.

On everyone's radar are NFL Hall of Famer Ronnie Lott and Oakland Mayor Libby Schaaf's efforts to keep the Oakland Raiders in the Oakland Coliseum while Raiders' owner Mark Davis continues to push for a move to Las Vegas. As talks continue, the city holds its breath over whether the iconic team will stay.

Meanwhile, AC Transit is set to begin construction on the Bus Rapid Transit system (BRT), which will connect Uptown Oakland to San Leandro. Due to the winter rain, construction has been postponed to January 2017 and is expected to be completed within two years. East Bay transit officials hope that the BRT will help solve the "last mile" transit challenge of getting passengers from BART stations and other transit hubs closer to where they live. More important for commercial real estate is that the system could spur growth in rundown blocks along International Boulevard in South Oakland.

Oakland Airport

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Vacancy vs. Asking Full Service Rental RatesOakland Airport | Class A

$1.20$1.24$1.28$1.32$1.37$1.41$1.45$1.49$1.53$1.57$1.62$1.66$1.70

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Vacancy vs. Asking Full Service Rental RatesOakland Airport | Classes B and C


“The overall full service (FS)asking rate ended the year at $1.71 per square foot per month, up slightly from the third quarter but quite higher than the $1.46 figure during the fourth quarter of 2015.”


Alameda Vacancy in Marina Village rose from 9.2 percent to 12.1 percent quarter on quarter with over 22,000 square feet coming online at 1020 Atlantic Avenue and 1105 Atlantic Avenue and 17,124 square feet becoming available at 850 Marina Village Parkway.

Marina Village asking rents have decreased from $2.81 to $2.53 per square foot per month FS throughout the same period, driven by $2.40 per square foot per month FS asking rates in the two available floors at 2470 Mariner Square Loop. With a total of 50,262 square feet, the two floors make up 42 percent of the available square footage in Marina Village and has a large effect on weighted average asking rents. Vacancy and asking rents for Marina Village are expected to stay relatively stable, with any changes being moderate.

Harbor Bay's vacancy also ticked up by 0.3 percent from the previous quarter, but rents fared better, increasing from $2.26 to $2.35 per square foot per month, which is in line with the slow but steady positive increase in rents since at least the beginning of 2015. Vacancy is expected to remain relatively stable within the mid-20 percent range, as has been the case since the start of 2015.

Marina Village started 2016 off strong with 124,513 square feet of net absorption year to date (YTD) at the end of the first quarter and ended the year with 108,526 square feet net absorption YTD. Harbor Bay trended the opposite way, with a weak start of negative 24,394 of net absorption YTD at the end of the first quarter and finishing with 92,581 square feet of net absorption YTD.

The exciting Alameda Point project is underway, with the goal of remaking the 1500-acre Naval Air Station into a mixed-use neighborhood that the city hopes will provide 1,425 homes and 5.5 million square feet of commercial space upon its completion. Development moves forward as Alameda chose RiverRock Real Estate Group as property managers of what will be more than sixty tenants. Alameda remains the best submarket for single story flex and midrise suburban buildings in business parks locations, and looks poised to benefit from tenants who do not wish to be in a downtown urban setting, especially as rents in the greater Bay Area remain at their current levels.

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Vacancy vs. Asking Full Service Rental RatesAlameda | Harbor Bay


Vacancy vs. Asking Full Service Rental RatesAlameda | Marina Village

HARBOR BAY, ALAMEDA

Vacancy is expected to remain relatively stable within the mid-20 percent range, as has been the case since the start of 2015.


RICHMOND

BERKELEY

EMERYVILLE

ALAMEDA

OAKLAND

SANLEANDRO

SANLORENZO

HAYWARD

UNIONCITY

SANFRANCISCO

BAY

80

80

580

880 680

Significant Lease Activity

Incubator8000 Edgewater Drive, Suite 2nd Flr, Oakland

December 2016

28,759 Square Foot Direct

S&C Electric1135 Atlantic Avenue, Suite Floor 1, Alameda

October 2016

28,064 Square Foot Renewal

SurveyMonkey.com6401-6485 Hollis Street, Suite 100, Emeryville

October 2016

37,892 Square Foot Sublease

Benito Juarez Elementary School1450 Marina Way South, Suite Bldg C, Richmond

November 2016

47,632 Square Foot Direct

Significant Sale ActivityPROPERTY ADDRESS SALE DATE SIZE BUYER TYPE

1611 Telegraph Avenue, Oakland October 2016 113,726 Bentall Kennedy Investment

1450 Marina Way South, Richmond November 2016 96,221 AEP Charter 1450 Amethod LLC Investment

409 13th Street, Oakland December 2016 83,000 Harvest Properties Investment

519 17th Street, Oakland November 2016 53,838 Embarcadero Capital Partners Investment


MARKET COMPARISONS

OFFICE MARKET

CLASS BLDGS

TOTAL

INVENTORY

SF

DIRECT

VACANT

SF

DIRECT

VACANCY

RATE

SUBLEASE

VACANT

SF

SUBLEASE

VACANCY

RATE

TOTAL

VACANT

SF

VACANCY

RATE

CURRENT

QUARTER

VACANCY

RATE

PRIOR

QUARTER

NET

ABSORPTION

CURRENT

QTR SF

NET

ABSORPTION

YTD

SF

AVG ASKING

FULL SERVICE

CBD SECTION

OAKLAND - DOWNTOWN

A 30 10,206,445 149,369 1.5% 58,337 0.6% 207,706 2.0% 2.1% 10,501 86,216 $4.21

B/C & Flex 114 5,407,729 339,548 6.3% 32,243 0.6% 371,791 6.9% 11.8% 266,656 (97,121) $3.35

Total 144 15,614,174 488,917 3.1% 90,580 0.6% 579,497 3.7% 5.5% 277,157 (10,905) $3.66

OAKLAND - JACK LONDON SQUARE

A 4 355,600 47,206 13.3% 2,595 0.7% 49,801 14.0% 20.8% 24,025 (49,801) $4.40

B/C & Flex 41 1,285,539 68,642 5.3% 10,155 0.8% 78,797 6.1% 5.5% (8,335) (48,867) $3.41

Total 45 1,641,139 115,848 7.1% 12,750 0.8% 128,598 7.8% 8.8% 15,690 (98,668) $3.79

CBD TOTAL

A 34 10,562,045 196,575 1.9% 60,932 0.6% 257,507 2.4% 2.8% 34,526 36,415 $4.24

B/C & Flex 155 6,693,268 408,190 6.1% 42,398 0.6% 450,588 6.7% 10.6% 258,321 (145,988) $3.36

Total 189 17,255,313 604,765 3.5% 103,330 0.6% 708,095 4.1% 5.8% 292,847 (109,573) $3.68

SUBURBAN SECTION

RICHMOND

A - - - - - - - - - - - -

B/C & Flex 98 3,480,353 94,620 2.7% 47,844 1.4% 142,464 4.1% 2.7% (47,844) 26,568 $1.51

Total 98 3,480,353 94,620 2.7% 47,844 1.4% 142,464 4.1% 2.7% (47,844) 26,568 $1.51

BERKELEY - DOWNTOWN

A 9 558,882 8,233 1.5% - 0.0% 8,233 1.5% 3.1% 8,873 (2,225) $3.50

B/C & Flex 28 974,473 13,687 1.4% - 0.0% 13,687 1.4% 2.4% 9,784 2,647 $2.55

Total 37 1,533,355 21,920 1.4% - 0.0% 21,920 1.4% 2.6% 18,657 422 $2.90

BERKELEY - WEST

A - - - - - - - - - - - -

B/C & Flex 41 1,517,619 292,032 19.2% 19,451 1.3% 311,483 20.5% 20.8% 4,423 (27,956) $3.28

Total 41 1,517,619 292,032 19.2% 19,451 1.3% 311,483 20.5% 20.8% 4,423 (27,956) $3.28

EMERYVILLE

A 15 2,668,348 151,683 5.7% 14,245 0.5% 165,928 6.2% 11.3% 136,237 52,003 $3.65

B/C & Flex 44 1,683,088 124,559 7.4% 75,405 4.5% 199,964 11.9% 11.3% (9,576) (6,755) $2.62

Total 59 4,351,436 276,242 6.3% 89,650 2.1% 365,892 8.4% 11.3% 126,661 45,248 $3.09

ALAMEDA - MARINA VILLAGE

A - - - - - - - - - - - -

B/C & Flex 51 1,600,673 137,748 8.6% 55,602 3.5% 193,350 12.1% 9.2% (45,992) 108,526 $2.53

Total 51 1,600,673 137,748 8.6% 55,602 3.5% 193,350 12.1% 9.2% (45,992) 108,526 $2.53

ALAMEDA - HARBOR BAY

A - - - - - - - - - - - -

B/C & Flex 28 1,684,784 363,725 21.6% - 0.0% 363,725 21.6% 21.3% (5,264) 92,581 $2.35

Total 28 1,684,784 363,725 21.6% - 0.0% 363,725 21.6% 21.3% (5,264) 92,581 $2.35

OAKLAND - AIRPORT

A 2 455,697 19,478 4.3% - 0.0% 19,478 4.3% 4.3% - 17,728 $2.34

B/C & Flex 34 1,576,808 192,092 12.2% 4,200 0.3% 196,292 12.4% 15.0% 40,869 145,633 $1.64

Total 36 2,032,505 211,570 10.4% 4,200 0.2% 215,770 10.6% 12.6% 40,869 163,361 $1.71

SUBURBAN TOTAL

A 26 3,682,927 179,394 4.9% 14,245 0.4% 193,639 5.3% 9.2% 145,110 67,506 $3.51

B/C & Flex 324 12,517,798 1,218,463 9.7% 202,502 1.6% 1,420,965 11.4% 10.9% (53,600) 341,244 $2.44

Total 350 16,200,725 1,397,857 8.6% 216,747 1.3% 1,614,604 10.0% 10.5% 91,510 408,750 $2.56

MARKET TOTALA 60 14,244,972 375,969 2.6% 75,177 0.5% 451,146 3.2% 4.4% 179,636 103,921 $3.93

B/C & Flex 479 19,211,066 1,626,653 8.5% 244,900 1.3% 1,871,553 9.7% 10.8% 204,721 195,256 $2.66

TOTAL 539 33,456,038 2,002,622 6.0% 320,077 1.0% 2,322,699 6.9% 8.1% 384,357 299,177 $2.91

QUARTERLY COMPARISON AND TOTALSQ4-16 539 33,456,038 2,002,622 6.0% 320,077 1.0% 2,322,699 6.9% 8.1% 384,357 299,177 $2.91

Q3-16 539 33,456,038 2,483,226 7.4% 223,830 0.7% 2,707,056 8.1% 7.5% - (133,024) $3.07

Q2-16 539 33,456,038 2,299,544 6.9% 222,485 0.7% 2,522,029 7.5% 7.5% - 45,984 $2.98

Q1-16 539 33,456,038 2,432,423 7.3% 73,057 0.2% 2,505,480 7.5% 7.8% - 87,415 $2.61

Q4-15 539 33,456,038 2,484,207 7.4% 82,120 0.2% 2,592,895 7.8% 8.5% - 1,587,681 $2.33

Q3-15 539 33,456,038 2,729,609 8.2% 126,614 0.4% 2,856,223 8.5% 10.2% - 1,297,785 $2.31

Q2-15 539 33,456,038 3,268,246 9.8% 142,564 0.4% 3,410,810 10.2% 12.1% - 743,198 $2.30

Q1-15 539 33,456,038 3,863,047 11.5% 193,081 0.6% 4,056,128 12.1% 12.4% - 97,880 $2.23

Oakland Metropolitan Office Market | Fourth Quarter 2016COLLIERS INTERNATIONAL

Market Comparisons – OaklandOFFICE MARKET


United States: 153Canada: 34Latin America: 24Asia: 231 EMEA: 112

554 offices in 66 countries on 6 continents

$2.5billion in annual revenue*

2.0billion square feet under management

16,000professionals and staff

Copyright © 2017 Colliers International.

The information contained herein has been obtained from sources deemed reliable. While every reasonable effort has been made to ensure its accuracy, we cannot guarantee it. No responsibility is assumed for any inaccuracies. Readers are encouraged to consult their professional advisors prior to acting on any of the material contained in this report.

*All statistics are for 2016 and include affiliates

About Colliers InternationalColliers International Group Inc. (NASDAQ and TSX: CIGI) is an industry leading global real estate services company with more than 16,000 skilled professionals operating in 66 countries. With an enterprising culture and significant employee ownership, Colliers professionals provide a full range of services to real estate occupiers, owners and investors worldwide. Services include strategic advice and execution for property sales, leasing and finance; global corporate solutions; property, facility and project management; workplace solutions; appraisal, valuation and tax consulting; customized research; and thought leadership consulting.

Colliers professionals think differently, share great ideas and offer thoughtful and innovative advice that help clients accelerate their success. Colliers has been ranked among the top 100 outsourcing firms by the International Association of Outsourcing Professionals’ Global Outsourcing for 11 consecutive years, more than any other real estate services firm.

For the latest news from Colliers International, visit Colliers.com or follow us on Twitter (@ColliersIntl) and LinkedIn.

COLLIERS INTERNATIONAL | OAKLAND1999 Harrison Street, Suite 1750Oakland, CA 94612 | United States

+1 510 986 6770

MARKET CONTACT:Ken MeyersieckExecutive Vice PresidentManaging Director | Oakland+1 510 433 [email protected] License No. 00939525

Russell Chang, CPRCResearch Analyst I | Oakland+1 510 433 [email protected]

Andrew Xie, CPRCResearch Coordinator | Oakland+1 510 433 [email protected]

research & 113 - colliers internationalmarket trends relative to prior period q4 2016 q1 2017*...

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