It Is All About Jobs! - Real Estate Forums · Nov. ‘10 Oct. ‘11 Source: Statistics Canada and Bureau of Labor Statistics. ... Vancouver Calgary Edmonton Winnipeg Toronto Ottawa

It Is All About Jobs!

Oct. ‘11

Nov. ‘10

Oct. ‘11

Source: Statistics Canada and Bureau of Labor Statistics

Canada “An Oasis of Stability”

Office – 8.7%Industrial – 5.3%

CANADA Office – 8.0%Industrial – 7.1%

Office – 17.6%Industrial 10 7%

Office – 20.5%Industrial – 12.0% Office – 13.4%

Industrial 13 6%USA

Industrial – 10.7%

Office – 19.5%Industrial 14 6%

Industrial – 13.6%

Industrial – 14.6%

Source: CBRE Limited

Pockets of Growth Across North America

4 5%

4.0%

4.5%

s

3.0%

3.5%

ext F

ive Y

ears

2.0%

2.5%

b G

rowt

h, N

e

1.0%

1.5%

e Ann

ualJ

ob

0.0%

0.5%

Aver

age

-0.5%-4% -3% -2% -1% 0% 1% 2% 3% 4% 5%

Job Growthover the Last Year

Source: CBRE Limited, Conference Board of Canada, Moody’s Analytics

U.S. Markets Canadian Markets

The Capital Markets Are Open For BusinessREIT & REOC Issuance

Over $5.8 billion raised in 2011 YTD

Source: RBC Capital Markets, Canaccord Genuity Corp.

Large Cap REITs vs S&P/TSX

8.0%Average Yield

4.0%

6.0%

0.0%

2.0%

- 4.0%

- 2.0%

Shopping Centre REITs

Apartment REITs Diversified Commercial REITs

S&P/ TSX Return (Y/ Y)

Source: CIBC World Markets, CBRE Limited

Canadian Investment Transactions ($B)

$35.0

$25.0

$30.0

$15.0

$20.0

$ B

illio

ns

$5.0

$10.0

$

$0.02006 2007 2008 2009 2010 2011

Actual Volume Year-End Projection

Source: CBRE Limited, RealNet Canada, RealTrack Inc.

Who Bought in 2011 YTD? (Incl Hotel & ICI)

Buyers Office Industrial Retail Multi-Res

ICI-Land Hotel TotalRes Land

Private/Syndicates 20.4% 53.7% 41.0% 67.7% 95.9% 100.0% 44.3%

Foreign 2.6% 3.6% 0.0% 4.8% 0.0% 0.0% 2.1%

Pension Fund 7.8% 3.9% 30.2% 0.0% 0.0% 0.0% 12.1%

Institutions 6.1% 13.3% 1.6% 0.0% 1.0% 0.0% 4.8%

REITs/REOCs 59.3% 22.7% 27.3% 27.5% 2.5% 0.0% 35.0%

Private Equity 3.8% 2.8% 0.0% 0.0% 0.6% 0.0% 1.7%

Source: CBRE Limited/RealNet Canada

Moderate Job Growth Hinders Office Demand

Source: CBRE-EA Canada Office Outlook XL, Summer 2011

Canadian Office Markets

Vacancy (y/y)

Source: CBRE Limited

Most Markets Below Historical Average Office Vacancy

16

12

14

8

10

Rate

s (%

)

4

6

Vaca

ncy

R

0

2

Vancouver Ca lgary Edmonton Winnipeg Toronto Ottawa Montrea l Ha lifax

3Q2011 10 Year Average

Source: CBRE-EA Canada Office Outlook

Industrial - Canada Outperforms!

14%

16%Forecast

10%

12%

14%

ty R

ate

6%

8%

10%

Avai

labi

li

2%

4%

6%

0%

2%

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

Canada US

Source: CBRE-EA Canada Industrial Outlook XL, Summer 2011

Canadian Industrial Markets

200 Availability (y/y)

100

bps)

- 100

0

s Poi

nts

(b

300

- 200Basi

s

- 300

Source: CBRE Limited

Industrial Availability Rates Below Historical Average

12

10

%)

6

8

ty R

ates

(%

4

Ava

ilabi

lit

0

2

A

0Vancouver Ca lgary Edmonton Winnipeg Toronto Ottawa Montrea l Ha lifax

3Q2011 10 Year Average

Source: CBRE Limited

Across Asset Classes, North America Priced WellCap Rates, %

8.5

9.0p ,

8.0

7.0

7.5

EMEA

Americas

6.5

Asia Pacific

Global

5.5

6.0

5.0

003.

1

003.

3

004.

1

004.

3

005.

1

005.

3

006.

1

006.

3

007.

1

007.

3

008.

1

008.

3

009.

1

009.

3

010.

1

010.

3

011.

1

011.

3

Source: CBRE Limited, Real Capital Analytics

20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20

Non-European buyers invested €24 billion in Europe in 2010-H1 2011

Cross border capital flows, 2010 and H1 2011Non European buyers invested €24 billion in Europe in 2010 H1 2011

Central London took by far the largest share of interest – 39% of the total

France (mainly Paris) and a number of German markets also featured fairly strongly.

London €9.4 bnParis €1.9 bnBerlin €0.8 bnM €0 8 b

North America

€ 13 1 bn Moscow €0.8 bnFrankfurt €0.7 bn

€ 13.1 bn

Asia

€ 5.0 bnMiddle East

Australia

Middle East€4.2 bn

€ 0.9 bn

Source: CBRE, PropertyData, KTI

Cap Rates Hit 2007 Levels – Going Lower?

11%

10%

8%

9%

7%

6%

5%2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 1Q11 2Q11 3Q11

Office - CBD A Industrial - A & B Retail - Neighbourhood Multi-Res - B

Source: CBRE Limited