Manulife US REIT - Annual Report 2021

ANNUAL REPORT 2021 69 Leasing activity (Washington D.C. CBD) Tenant Address Class Lease type Size (s.f) Gibson Dunn 1700 M Street NW Trophy Relocation 163,750 Katten Muchin Rosenman 1919 Pennsylvania Avenue NW B Relocation 51,527 Guidehouse 1200 19 th Street NW A Renewal 51,118 Industrious 1615 L Street NW A Renewal 40,456 Brown Advisory 1801 Pennsylvania Avenue NW A Relocation 32,302 Office sales (Washington D.C. CBD) Building RBA (s.f) Sales Price (US$) Price ($ p.s.f.) Buyer Seller WashREIT Portfolio 678,593 364,500,000 $537 Brookfield WashREIT 1735 K Street NW 97,000 22,500,000 $232 Beacon FIRA Washington D.C. Market Data Active Development Pipeline (Washington D.C. CBD) Building Developer Spec/BTS Completion RBA (s.f) Anchor 2100 Pennsylvania Avenue NW Boston Properties Spec 2022 423,562 WilmerHale 1700 M Street NW Skanska Spec 2024 334,000 Gibson Dunn 1700 Pennsylvania Avenue NW Akridge Spec 2022 188,000 - Apart from Gibson Dunn’s pre-lease for 163,750 sq ft at 1700 M Street NW, leasing activity was subdued throughout Q3 and Q4 2021. A combination of legal services, consulting and real estate firms such as Katten Muchin, Guidehouse, Industrious and Brown Advisory all signed on for between 30,000 and 60,000 sq ft, but in the form of renewals and relocations with contraction rather than new or expansionary leasing. One project broke ground in the second half of 2021: 1700 M Street NW, which will be anchored by Gibson Dunn upon its delivery in 2024. There are two major speculative development also underway that will hit the market in 2022 – 1700 and 2100 Pennsylvania Avenue NW – adding 611,562 of new product to the CBD. Outlook Washington, D.C. as a whole, especially the CBD, will remain soft among gateway markets over the near-term as continued supply additions keep vacancy elevated and concessions stay firm at record highs. New legislation to accelerate the process of converting office space in Downtown D.C. to other asset classes, particularly residential, is likely to help correct fundamentals in the coming years.