Manulife US REIT - Annual Report 2021

ANNUAL REPORT 2021 55 Leasing Activity (Downtown) Tenant Address Class Lease type Size (s.f) HNTB 777 S Figueroa Street Trophy New Lease 41,000 Hueston Hennigan 523 W 6 th Street A Renewal 33,703 Johnny Was 712 S Olive Street C New Lease 31,153 Vinson & Elkins 350 S Grand Avenue Trophy Relocation 27,491 Haight, Brown & Bonesteel 555 S Flower Street Trophy Renewal 27,280 Burlington Coat Factory 700 S Flower Street A Expansion 24,965 Attainment 700 S Flower Street A New Lease 23,234 Office Sales (Downtown) Building RBA (s.f) Sales Price (US$) Price ($ p.s.f.) Buyer Seller 260 S Los Angeles Street 40,596 7,500,000 $185 Little Tokyo Arts Tower Khasrow Rafi Shaulian Active Development Pipeline (Downtown) Building Developer Spec/BTS Completion RBA (s.f) Anchor Herald Examiner Building Georgetown Spec 2022 470,000 ASU Enterprise Partners Los Angeles Market Data blocks of quality space as the submarket’s pipeline remains nearly non-existent. Investment activity for traditional office remained slim, but larger deals are beginning to transact with more regularity. A joint venture between Square Mile Capital and Hackman Capital acquired CBS Studio Center in December for US$1.85 billion, and in the same month Brookfield acquired Dreamworks’ Glendale campus for US$326.8 million. Three other office trades over US$100.0 million closed in the second half of the year, lifting year-end sales volume to US$3.2 billion for the Los Angeles market. Outlook Downtown Los Angeles’ officemarket will remain subdued even compared tohistorical standards as the neighborhood’s ageing inventory no longer meets many tenants’ needs. Regional activity is rebounding in pockets, but largely confined to the Westside and Hollywood from creative and non-traditional users. As a result, Downtown will stay highly tenant-favorable for the foreseeable future, but will also be slow to attract additional investment and new construction.