Eindhoven Office Market Profile – Q2 2014 EMEA Office Research 0%  Q2 14 Capital Value (psm) Prime Yield % Change* Q-o-Q Y-o-Y 12 Month Outlook €2748 0% 0%  6.55 0 bps 0 bps  * % Change for Prime Rents and Capital Values calculated using local currency 60 40 20 0 Take Up H1'14 0% 2013 €180 10yr Average Figure 2: : Supply and Vacancy Rtes Vacancy Rate % 000s sqm Office Market Overview 250 Office demand weakened for the third consecutive quarter with just 6,940 sq m taken-up in Q2 across three deals. The only large letting of the quarter was Fontys Hogescholen (University) taking up 5,600 sq m in Eindhoven – Centre. Tenants make the most of the current market situation and continue to successfully negotiate flexible lease terms, which comprise an average 12.5 months’ rent free on a 5+5 year lease contract in prime locations. Prime rents remained stable at € 180 / sq m pa and are likely to remain flat going forward. Overall vacancy increased by once again to stand at 14.2% in Q2 2014 as occupiers continue to release surplus space in the market. The municipality is making continuous efforts to reduce current vacancy levels. Expediting office conversions into other uses and a restrictive new-build policy are two key measures in that direction. The effect of these measures may however be negated to some extent as occupiers continue to consolidate, potentially increasing vacancy, particularly in peripheral locations. No completion was recorded during the quarter. The development pipeline of 7,155 sq m scheduled for completion in Q4 2014 is fully pre-let. Office investment volume fell to €4.75 million in Q2. Prime yields were unchanged at 6.55%. 150 200 100 2012 2011 2010 2009 2008 2007 2006 2005 0 2004 50 Vacancy Total Q2'14 Prime Rent (psm) 80 16 14 12 10 8 6 4 2 0 Vacancy Rate Figure 3: Prime Rents and Rental Growth Prime Rent (psm pa) 200 Annual Rental Growth* 150 100 Rental Growth 2011 2010 2009 2008 2007 2006 2005 2004 0 2003 50 25 20 15 10 5 0 -5 -10 Q2'14  Q4 12 Q3 13 Q2 14 110 bps 2013 130 bps Q4 11 14.2 2012 Vacancy Rate (% ) 2013  2012 50.9 % Prime Rent Prime Yield Source all Charts: JLL Q4 09 Q4 08 Q4 07 Q4 06 Q4 05 Q4 04 Q4 02 Q4 01 Prime Yield (%) 7.50 7.00 6.50 6.00 5.50 5.00 Q4 03 Figure 4: Prime Yields Q4 10 -27.3 % 2011 7 2010 Take-up (000s sqm) 000s sqm 100 2009 Outlook 2008 Y-o-Y 2007 Q-o-Q 2006 Q2 14 Figure 1: Take-up 2005 Summary Statistics 12 Month 2004 Change* 10yr Average Office Market Map JLL Contacts Frans Landmeter Head of Office Agency Eindhoven Eindhoven +31 40 250 0102 [email protected] Dré van Leeuwen Head of Capital Markets Amsterdam +31 20 540 7912 [email protected] www.jll.eu Sven Bertens Head of Research Amsterdam +31 20 540 7926 [email protected] COPYRIGHT © JONES LANG LASALLE IP, INC. 2014. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means without prior written consent of Jones Lang LaSalle. It is based on material that we believe to be reliable. Whilst every effort has been made to ensure its accuracy, we cannot offer any warranty that it contains no factual errors. We would like to be told of any such errors in order to correct them.