Market Commentary

The Q Charts and Tables

The Q^TM Charts and Tables

Each market node description contains the following statistical information:

• Vacancy rates
• Gross rates
• Sublease and Quality Sublease supply
• Total number of problem buildings
• Top 2 problem buildings

Also included are charts which graphically depict the following information from the first quarter 2000 to the present quarter:

 

The Lennard Segment Index^TM (LSI)

The Lennard Segment Index^TM (LSI) is the average vacancy rate for a market node comprised of our survey selections. The LSI establishes a benchmark by which landlords can closely monitor leasing performance, reducing vacancy carry, and increasing building value.

Buildings with 'problem' vacancy outlined in this report are defined as having a vacancy rate of 15% or greater.

The number of buildings in a node with 'problem' vacancy divided by the total number of buildings in a segment is The Problem Percentage^®.

The overall health of a submarket or node can be clearly defined by The Problem Percentage^®. The higher The Problem Percentage^® the softer the market (See overview on front page).

'Problem' vacancy buildings make great targets for tenants because buildings that are lagging behind the segment index must take action to reduce their vacancies as soon as possible. They may also represent buying opportunities for investors with creative asset management strategy.