Presentation to: XXXXXX XX, 2007
Presentation to:
XXXXXX XX, 2007
CB Richard Ellis | Page 2
Bank of China
I. Current situation
II. Market Overview
Midtown Leasing
Property Sales
III. CBRE Overview
Agenda
CB Richard Ellis | Page 3
Current Situation
Own and occupy property at 410 Madison Avenue
Building information:• Market/Submarket: Midtown / Fifth / Madison• Year built: 1964• Total square footage: 58,395 SF
—Office: 51,555 sf—Retail: 6,840 sf
• Floors: 8 - 7,000 sf each• Unused air rights: 49,073 sf
Downtown Branch – 42 East Broadway
Bank of China - New York Offices
CB Richard Ellis | Page 4
Midtown
Park
5th / Madison
East Side
6th / Rock Ctr.
Times Square/ West Side
Times Square South
Grand Central
Plaza
April 2007
K E Y
CB Richard Ellis | Page 5
Midtown
217
59
42
43
110
75
22
87
472
53
168
113
878
236
174
52
Park
5th/Madison
East Side
6th/Rock
TS/West Side
TS South
Grand Central
Plaza
K E Y
Total Leased:
2007 655
2006 2,146
60 Month Average
1,231
April 2007
Leasing Activity March 1 – April 1
CB Richard Ellis | Page 6
Midtown
Leasing Activity Year-to-Date 2007
582
226
269
144
542
416
92
458
1,095
317
438
255
1,182
581
474
225
Park
5th/Madison
East Side
6th/Rock
TS/West Side
TS South
Grand Central
Plaza
Total Leased:
2007 2,729
2006 4,567
2005 3,902
2004 5,309
April 2007
K E Y
CB Richard Ellis | Page 7
Midtown
21
-47
-137
149
-19-50 -35
30
136
-4
-281
-61
-4
199
9456
Thousands of Square Feet
Park East Side TS/ West Side Grand Central 5th/Madison 6th/Rock TS South Plaza
K E Y
Total Absorption:
2007 -88
2006 135
April 2007
Net Absorption March 1 – April 1
CB Richard Ellis | Page 8
Midtown
Net Absorption Year-to-Date 2007
142
-140
-260
47 12
-245
28
-92
354
33
-193
-358
-20
262 239
-704
Thousands of Square Feet
Park East Side TS/ West Side Grand Central 5th/Madison 6th/Rock TS South Plaza
K E Y
Total Absorption:
2007 -508
2006 -387
2005 -2,382
2004 1,386
April 2007
CB Richard Ellis | Page 9
Midtown
27.2
10.4
36.9
13.9
27.4
40.3
18.2
9.5
Park
5th/Madison
East Side
6th/Rock
TS/West Side
TS South
Grand Central
Plaza
Millions of Square Feet
Total Available SF: 16.8
Availability Rate: 8.4% 4/1/07
8.3% 3/1/07
Available
Committed
April 2007
K E Y
1.4/ 11.6%
4.1 / 10.0%
1.5 / 10.1%
2.0 / 6.9%
3.4 / 7.7%
1.6 / 8.0%
1.0 / 9.3%
1.8 / 6.2%
Available Space by Segment
CB Richard Ellis | Page 10
Midtown
6.2%
10.0%10.1%
6.9%7.7%8.0%
9.3%
11.6%
6.3%7.4%
8.1% 7.8% 7.7%
10.4%
11.7%11.8%
Park 5th/Madison East Side 6th/Rock TS/West Side TS South Grand Central Plaza
4/1/06 8.9% 6.3% 7.4% 8.1% 7.8% 7.7% 11.8% 11.7% 10.4%
3/1/07 8.3% 5.7% 8.9% 8.1% 8.1% 7.0% 9.9% 9.9% 11.3%
Park6th/RockCenter
Times Sq/ West Side
TS South
Grand Central Plaza
EastSide
5th/MadisonComposite
4/1/07 8.4% 6.2% 9.3% 8.0% 7.7% 6.9% 10.1% 10.0% 11.6%
Availability Rate by Segment
CB Richard Ellis | Page 11
Midtown
4/1/05 11.1% 7.8% 12.5% 15.1% 10.1% 6.9% 12.2% 14.5% 11.7%
4/1/06 8.9% 6.3% 7.4% 8.1% 7.8% 7.7% 11.8% 11.7% 10.4%
4/1/07 8.4% 6.2% 9.3% 8.0% 7.7% 6.9% 10.1% 10.0% 11.6%
Park6th/RockCenter
Times Sq/ West Side
TS South
Grand Central Plaza
EastSide
5th/MadisonComposite
4/1/03 11.9% 9.8% 12.9% 13.7% 9.0% 9.9% 12.7% 15.5% 14.3%
4/1/04 12.6% 9.8% 13.1% 16.0% 12.3% 8.7% 13.1% 14.6% 16.6%
4/1/02 9.3% 7.7% 11.2% 11.3% 5.9% 5.0% 13.5% 11.6% 16.4%
4/1/01 5.0% 4.3% 7.4% 5.2% 3.0% 4.0% 8.0% 6.0% 6.7%
4/1/00 4.9% 2.4% 6.7% 7.3% 2.8% 3.7% 6.4% 6.3% 8.8%
4/1/99 8.0% 7.9% 9.2% 6.6% 4.8% 5.5% 8.2% 13.0% 8.2%
4/1/98 8.6% 8.5% 8.8% 7.4% 3.7% 5.0% 10.2% 15.6% 9.1%
Availability Rate by Segment
CB Richard Ellis | Page 12
KEY
Direct
Sublet
0
2
4
6
8
10
12
14
16
18
20
22
24
26
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 4/1/07
Available Space - Direct and Sublet
Midtown
April 2007
7.5%8.0%
6.3%
3.9%
8.3%
11.0%
13.4%
10.1%
8.8%
8.2%8.4%
1.8%
5.7%
2.2%
5.8%
1.3%
5.0%.8%
3.1%
3.3%
5.0%
4.8%
6.2%
3.4%
8.5%
4.9%
6.7%
2.4%
6.4%
2.3%
5.9%
2.3%
6.1%
CB Richard Ellis | Page 13
Park
5th/Madison
East Side
6th/Rock
TS/West Side
TS South
Grand Central
Plaza
Available Space – Direct vs. Sublet
KEY
Total Avail. RSF (mm):16.8
Avg. Availability Rate:8.4%
Direct
6.1%
Sublet
2.3%
April 2007
9.7%
6.2%
9.3%
8.0%
7.7%
6.9%
10.1%
10.0%
11.6%
7.1% 2.2%
1.9%
6.1% 1.9%
4.8% 2.9%
5.7% 1.2%
8.8% 1.3%
7.9% 2.1%
Midtown
2.8% 3.4%
CB Richard Ellis | Page 14
1,747
2,663
2,597
3,559
3,869
2,322
Over 250,000
100,000-249,999
50,000-99,999
25,000-49,999
10,000-24,999
0-9,999
17
38
107
251
444
Thousands of Square Feet
Total Available SF:16,757
Total Blocks: 861
April 2007
K E Y
Midtown
Size Distribution of Available Space
4
229 West 43rd Street 622,935 sf380 Madison Avenue 449,172 sf1271 A/A 376,157 sf340 Madison Avenue 279,000 sf
April 2007
CB Richard Ellis | Page 15
Midtown
Average Asking Rent
$94.67
$65.04
$46.71
$72.66
$83.82
$67.91
$86.39$93.29
$67.99$62.08
$51.15
$60.53
$50.13
$78.70
$53.08
$38.21
Park 5th/Madison East Side 6th/Rock TS/West Side TS South Grand Central Plaza
Park6th/RockCenter
Times Sq/ West Side
TS South
Grand Central Plaza
EastSide
5th/Madiso
nComposite
4/1/06 $56.51 $67.99 $62.08 $51.15 $60.53 $50.13 $38.21 $53.08 $78.70
4/1/07 $74.14 $94.67 $86.39 $67.91 $83.82 $72.66 $46.71 $65.04 $93.29
3/1/07 $69.99 $90.80 $84.01 $65.81 $77.33 $68.58 $45.37 $60.88 $89.31
CB Richard Ellis | Page 16
Midtown
Park6th/RockCenter
Times Sq/ West Side
TS South
Grand Central Plaza
EastSide
5th/MadisonComposite
Average Asking Rent
4/1/05 $50.88 $66.30 $55.33 $44.92 $55.68 $45.68 $34.29 $47.88 $70.11
4/1/07 $74.14 $94.67 $86.39 $67.91 $83.82 $72.66 $46.71 $65.04 $93.29
4/1/06 $56.51 $67.99 $62.08 $51.15 $60.53 $50.13 $38.21 $53.08 $78.70
4/1/04 $50.53 $56.83 $54.86 $47.02 $53.86 $49.21 $32.85 $45.91 $71.53
4/1/03 $51.62 $58.00 $58.81 $44.01 $53.41 $44.21 $35.04 $51.68 $67.81
4/1/02 $57.11 $69.77 $62.23 $50.46 $62.03 $49.12 $38.50 $51.78 $76.16
4/1/01 $60.84 $78.23 $64.94 $56.78 $66.03 $54.79 $40.25 $59.11 $88.96
4/1/00 $50.67 $62.21 $57.48 $50.53 $52.41 $49.65 $34.02 $48.17 $68.58
4/1/99 $46.71 $54.05 $50.76 $44.61 $52.11 $43.09 $29.36 $43.64 $60.69
4/1/98 $39.32 $45.46 $42.62 $39.45 $41.77 $31.31 $25.39 $38.06 $54.99
CB Richard Ellis | Page 17
Midtown
Average Asking Rents - Direct and Sublet
$30
$35
$40
$45
$50
$55
$60
$65
$70
$75
96 97 98 99 00 01 02 03 04 05 4/1/07
Figures are year-end unless otherwise noted
$ / RSFKEY
Direct
Sublet
April 2007
$75.49
$70.09
CB Richard Ellis | Page 18
Midtown
33.8% 894
K E Y
18.8%496
Thousands of Square Feet
32.1%850
15.3%489
Total Leased SF:2,729
Total Units:270
0-9,999 193
10-24,999 56
25-49,999 14
50-99,999 7
100-249,999 0
Over 250,000 0
April 2007
Size Distribution of Leased Space Year to Date 2007
CB Richard Ellis | Page 19
Tenant Address RSF\
Davis Polk & Wardwell 450 Lexington Avenue 650,088
Towers Perrin 335 Madison Avenue 98,974
TeleRep, Inc. 885 Second Avenue 80,640
Amerada Hess Corporation 1185 Avenue of the Americas 53,522
Premiere Radio Network, Inc. 1270 Avenue of the Americas 45,787
Blue Rock Editing Company 575 Lexington Avenue 39,620
ABP Investments, Inc. 666 Third Avenue 38,676
TOTAL 1,007,307
2007 Year to Date Renewals Greater Than 25,000 SF
* SF represents renewal portion of deal. Transaction has additional expansion SF
Renewal SF is not counted in statistical leasing activity.
Midtown
CB Richard Ellis | Page 20
Midtown
Initial Taking Rents as a Percentage of Asking Rents
60%
70%
80%
90%
100%
KEY
96% 4/1/07
95% 3/1/07
92% 1/1/0689% 1/1/0587% 1/1/04
April 200786%
96%
The graph represents a weighted 6-month rolling average.Based on transactions 10,000 SF and greater.
87% 88%86%
CB Richard Ellis | Page 21
Raw Space
$0
$10
$20
$30
$40
$50
$60
0 2 4 6 8 10 12 14
Average $36.07psf4.54 months free
Midtown
Concession Values for Leases of 10,000 sf or Greater
T.I.
Allowance
KEY
Raw Space
April 2007
Months of Rent
AbatementBased on 3 month rolling average
CB Richard Ellis | Page 22
CB Richard Ellis + Trammell Crow Company
In December 2006, CBRE merged with Trammell Crow Company to create a real estate services firm with unprecedented scale, scope and service offerings
The merger of these market-leading firms leverages the complementary strengths and skills of two world-class organizations
The combined entity enhances the depth, breadth and quality of services that CBRE offers to its clients
CBRE now possesses the most comprehensive service offering, broadest geographic reach, sharpest market intelligence and brightest talent in the industry
CBRE has the market-leading position in the following service areas:
• Investment Sales
• Leasing
• Corporate Services
• Property & Facilities Management
• Project Management
Combined Company Overview
• Appraisal and Advisory
• Debt and Equity Finance
• Development and Investment
• Investment Management
CB Richard Ellis | Page 23
CB Richard Ellis
Global Overview – Year End 2006
24,000+ employees (excluding approximately 5,000 partner and affiliate employees)
Operates 400+ offices (including partner and affiliate offices) in more than 50 countries
Completed 60,000+ sales and lease transactions valued at $224.6 billion (combined CBRE and Trammell Crow Company activity)
• 47,450 lease transactions valued at $65 billion
• 13,200 property sales transactions valued at $159.6 billion
1.7+ billion square feet of property and corporate facilities under management (combined CBRE and Trammell Crow Company as well as partner and affiliate company portfolios)
$28.6 billion in investment assets under management
$5.4 billion of active development projects in process
$20.7 billion in loan originations and $95.4 billion in loan servicing (reflects loans serviced by GEMSA, a joint venture between CBRE│Melody and GE Capital Real Estate)
59,850 valuation and advisory assignments
CB Richard Ellis | Page 24
CB Richard Ellis
Americas Overview – Year End 2006
19,250+ employees operating in more than 200 offices (including partner and affiliate companies)
Completed 41,900 sales and lease transactions with a total value of $130.7 billion (combined CBRE and Trammell Crow Company activity)
• 34,200 lease transactions with a total value of $48.2 billion
• 7,700 property sales transactions with a total value of $82.5 billion
1.13 billion square feet of property and corporate facilities under management (combined CBRE and Trammell Crow Company as well as partner and affiliate company portfolios)
$13.7 billion in investment assets under management
$5.4 billion of active development projects in process
$20.7 billion in loan originations and $94 billion in loan servicing (reflects loans serviced by GEMSA, a joint venture between CBRE│Melody and GE Capital Real Estate)
25,000 valuation and advisory assignments
CB Richard Ellis | Page 25
International Office Locations
CB Richard Ellis
CB Richard Ellis | Page 26
CB Richard Ellis
South AfricaBloemfonteinCape TownDurbanJohannesburgKlerksdorpNelspruitPolokwanePort ElizabethPretoria
South KoreaSeoul
SpainBarcelonaMadridMalagaMarbellaPalma de MallorcaValencia
SwedenGothenburgStockholm
SwitzerlandZurich
TaiwanTaipei
ThailandBangkokPhuket
TurkeyIstanbul
ArgentinaBuenos Aires
AustraliaAdelaideBrisbaneCairnsCanberraChermsideGold CoastIpswichMelbourneMiltonMulgraveNorth SydneyParramattaPerthSouth SydneySunshine CoastSydneyTownsvilleTweed headsUnderwood
AustriaVienna
BelgiumBrussels
CroatiaZagreb
BotswanaGaborone
BrazilRio De JaneiroSao Paulo
BulgariaSophia
CanadaCalgaryEdmontonHalifax KitchenerLondonMontrealOakvilleOttawaSaint JohnTorontoVancouverWindsorWinnipeg
ChileSantiago
ChinaBeijingChengduGuangzhouHong KongShanghai
Czech RepublicPrague
DenmarkAarhusCopenhagenKolding
FinlandHelsinki
FranceAix-en-ProvenceAngersAnnecyAvignonBordeaux
CaenChamberyClermont FerrandGrenobleLe HavreLe MansLyonLilleMarseilleMetzMontluconMontpellierMontreuilMontrougeMulhouseNancyNantesNeuilly sur SeineNiceOrleansParisRennesRouenSaint DenisSaint NazaireSophia AntipolisStrasbourgToulouse
GermanyBerlinFrankfurtHamburgMunich
GreeceAthensThessaloniki
HungaryBudapest
IndiaBangaloreChennaiHyperabadMumbai (Bombay)New DelhiPune
IndonesiaJakarta
IrelandDublin
IsraelTel Aviv
ItalyMilanRome
JapanChibaFukuokaHiroshimaKanazawaKobeKyotoMatsuyamaNagoyaOkayamaOsakaSaitamaSapporoSendaiShinjukuShizuokaTachikawaTakamatsuTokyoYokohama
KenyaNairobi
MexicoGarza GarciaMexico CityMonterreyQueretaro
NetherlandsAmsterdamThe HagueHoofdorp
New ZealandAucklandChristchurchNorth AucklandWellington
NorwayOslo
PanamaPanama City
PeruLima
PhilippinesManila
PolandKrakowPoznanWarsaw
PortugalLisbonKoreaSeoul
RomaniaBucharestRussiaMoscow
SingaporeSingapore
UgandaKampala
United KingdomBelfastBirminghamBournemouthBristolEdinburghGlasgowJerseyLeedsLiverpoolLondonManchesterSouthhampton
United States(197 Offices)
VenezuelaCaracasPuerto la Cruz
VietnamHanoiHo Chi Minh City
ZimbabweBulawayoHarare
International Office Locations
CB Richard Ellis | Page 27
More than 1,000 employees and over 350 sales professionals in eight metropolitan area offices
Total transaction value of $26.8 billion for leasing and sales in 2006
• 2,157 leasing transactions valued at $14.4 billion
• 219 property sales transactions valued at $12.4 billion
$2 billion in loan originations
44 million square feet of property and corporate facilities under management
CB Richard Ellis
Tri-State Overview – Year End 2006*
*Combined CBRE and Trammell Crow Company
CB Richard Ellis | Page 28
CB Richard Ellis
Number one commercial real estate firm in New York City
More than 200 brokers in two Manhattan offices - Midtown and Downtown
Completed 25 of the 50 largest leases, including six of the top ten, and eight of the top 25 sales transactions in New York City in 2006
Recipient of REBNY’s 2004 Henry Hart Rice Achievement Award for the representation of Rodale for its lease at 733 Third Avenue
Awarded REBNY’s inaugural Edward S. Gordon Award in 2005 for the representation of the Research Foundation in its purchase of 230 West 34th Street
Since 1994, recipient of the prestigious Henry Hart Rice Award six times and the Robert T. Lawrence Memorial Award five times – REBNY’s premier dealmaking awards
Number one commercial real estate firm in New York City
More than 200 brokers in two Manhattan offices - Midtown and Downtown
Completed 25 of the 50 largest leases, including six of the top ten, and eight of the top 25 sales transactions in New York City in 2006
Recipient of REBNY’s 2004 Henry Hart Rice Achievement Award for the representation of Rodale for its lease at 733 Third Avenue
Awarded REBNY’s inaugural Edward S. Gordon Award in 2005 for the representation of the Research Foundation in its purchase of 230 West 34th Street
Since 1994, recipient of the prestigious Henry Hart Rice Award six times and the Robert T. Lawrence Memorial Award five times – REBNY’s premier dealmaking awards
Manhattan Overview – Year End 2006
CB Richard Ellis | Page 29
Valuation and Advisory
CorporateServices
Debt & EquityFinance
ClientStrategies
InvestmentProperties
Asset Services
Project Management
Development& Investment
Client
CB Richard Ellis
Lines of Business
Brokerage
CB Richard Ellis | Page 30
Comprehensive and specialized services combined with local market expertise and global reach
Market knowledge complemented by proprietary, in-house research databases
Organizational structure harnesses firm’s collective expertise
Intellectual capital and technology resources deliver superior analytical, research and service tools
Proven track record of meeting diverse client needs
Advantages
CB Richard Ellis
CB Richard Ellis | Page 31
Research Services
Provides listings, transaction terms, lease comparables, property details and historical data and trends
Proprietary databases track:
• leasing, investment sales, valuation, taxes and operating expenses
• tenant lease and occupancy information
• current tenants in the market
Combines data collected from the firm’sproprietary databases with third-party sources to provide the most accurate and up-to-date market information
Tracks office, industrial and retail data for leasing and sales as well as hotel, multi-housing and other specialty sectors in selected markets
CB Richard Ellis | Page 32
Leasing Brokerage / Agency Services
41,600 leasing transactions valued at $46.2 billion globally in 2005*
Tenant representation services:• current situation analysis and planning • development of viable options• comparative analysis of market availabilities• implementation of selected alternative• project management services for
tenant fit-out Agency representation services:
• investment analysis • strategic planning• property positioning• marketing and leasing• project management
*Combined CBRE and Trammell Crow Company activity.
CB Richard Ellis | Page 33
Process Overview
Real Estate Market Overview
Establish Project
Committees
Agree on Company Objectives
Personnel Data, Space Stds., Adjacencies,Infrastructure
Financial Parameters
Real Estate Market
Overview
DEFINED
OPPORTUNITY
SCENARIO
PLANNING
NEEDS
PROFILE
Strategy
Selection
Market
Engagement
Lease
Transaction
Phase I Phases II and III
CB Richard Ellis | Page 34
Traditional Brokerage CB Richard Ellis Organization
COLLECTIVE / EXPERTISE
PROCESS / CULTURE
Tenant Representation
Owner Representation
ResearchServices
Investment Properties
Consulting
CorporateServices
AssetServices Senior
Management
Organization Comparison
Senior Broker
Franchise
Senior Broker Senior Broker
Junior Broker Junior Broker Junior BrokerJunior Broker Junior Broker
Salesperson
Analyst
Salesperson
AnalystSalesperson Salesperson Salesperson
Salesperson
Analyst
Salesperson
Analyst
CBRE Approach