U.S. Capital Markets Glide Path to Clearer Skies

Anything not trophy faces even greater pressure Office sector cap rates by quality tier

12

The historic spreads in low quality tiers will widen materially in the forecast given the pronounced weakness that lower quality assets will confront.

10

8

6

4

2

0

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011 Bottom Tier

2012

2013

2014

2015

2016

2017 Top Tier

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

Overall Office

55

Source: NCREIF, MSCI Real Capital Analytics, Cushman & Wakefield Research

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