INDEPENDENT MARKET REPORT By JLL as at 31 December 2025 Executive Summary MUST's Market Performance Relative to U.S. Average • Leasing activity established a new post-pandemic high in Q4, and annual leasing grew 5.2% YoY. • Large-scale transactions increased by roughly 15% YoY as companies are developing more confidence to execute long-term commitments to their workplaces. • Net absorption was meaningfully positive in the second half of the year, driving year-end totals to 6.4 million s.f. of occupancy gains. • Downsizing activity for larger expirations has fallen to negligible amounts, allowing a new expansionary cycle to begin. • For seven consecutive quarters, U.S. office sales volume has increased compared to the previous year, and total transaction volume grew by 35% in 2025. • Distress levels remain high but are tentatively declining in the last two months of the year. Base and Net Effective Rental Rates (NERs) Sublease Availability QoQ Change U.S. U.S. U.S. MUST’s markets MUST’s markets MUST’s markets U.S. MUST’s markets MUST’s markets base rents MUST's markets NERs U.S. base rents U.S. NERs Average Lease Term U.S. MUST's markets 20% 10% 0% -10% Average Months of Free Rent Leasing Concessions Leasing Volume Average rent abatement (months free) Average T.I. allowance Leasing activity (m.s.f.) 6.0 4.0 2.0 0.0 $70 $65 $60 $55 $50 $45 $40 100.0 80.0 60.0 40.0 20.0 0.0 6.0 4.0 2.0 0.0 2019 2019 2019 2021 2021 2021 2020 2020 2020 2022 2022 2022 2023 2023 2023 2024 2024 2024 2025 2025 2019 2021 2020 2022 2023 2024 2025 2025 Average lease term (months) 80.0 70.0 60.0 50.0 Rental rates $60 $50 $40 $30 $20 2017 2018 2019 2020 2021 2022 2023 2024 2025 2017 2018 2019 2020 2021 2022 2023 2024 2025 • The construction pipeline continues to rapidly descend to record lows. Inventory currently under construction is now more than 20% lower than previous historic lows measured in 2011. • Groundbreakings marginally declined from record lows in 2024. • While Manulife US REIT’s markets are largely following the pattern of occupier recovery with respect to growing leasing volume and minimal downsizing activity, major CBD markets including Washington, DC and Los Angeles have seen a delayed recovery compared to secondary markets and other peers due to outsized industry composition from slower-growth sectors (e.g. Media & Entertainment, Government). Other markets have yet to see meaningful improvement in tenant demand in Manulife US REIT’s product type (e.g. Class B office in Tempe, Arizona). / 35 / MANULIFE US REIT
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