Manulife US REIT - Annual Report 2021

ANNUAL REPORT 2021 65 Leasing Activity (Sunset Corridor) Tenant Address Class Lease type Size (s.f) Planar 1195 NW Compton Drive A Renewal 72,242 Q5id 22823 NW Bennett Street A Sublease 44,407 Skyworks 1400 NW Compton Drive B Expansion 11,369 Office Sales (Sunset Corridor) Building RBA (s.f) Sales Price (US$) Price ($ p.s.f.) Buyer Seller Tanasbourne Commerce Center 132,851 33,850,000 $255 Manulife US REIT Westport Graymark Portfolio 210,181 14,700,000 $70 Loboda Graymark Active Development Pipeline (Sunset Corridor) Building Developer Spec/BTS Completion RBA (s.f) Anchor Ambercreek Southwest Value Spec 2022 85,047 Microsoft Portland Market Data market is also registering below-average leasing velocity, indicating that more wide-ranging economic growth and demand will be necessary for a sustained recovery. At the same time, only one building – Ambercreek – is on the verge of completion. It will house Microsoft as it expands further in Portland, spurred on by the presence of both established and emerging tech companies in the immediate surroundings and throughout the Portland metro area. The lack of additional construction hitting the Sunset Corridor will help to accelerate a correction in fundamentals in the coming quarters. Outlook The Sunset Corridor faces a number of substantial challenges in a post-COVID world, but is better positioned than many of its nearby suburban submarkets given its cluster of critical employers in high-growth industries and proximity to public transit to attract urban residents and skilled workforce. Repositioning existing assets with newer amenities will yield promising results when done proactively.