Market Remains Solid SAN FRANCISCO PENINSULA Q Research & Forecast Report 3.30% 87, ,438. San Mateo County

Transcription

1 Research & Forecast Report SAN FRANCISCO PENINSULA Q3 Market Remains Solid San Mateo County Population >> San Mateo County has the lowest unemployment rate Median Household Income Unemployment Rate >> Large Silicon Valley companies are migrating to the area >> Overall gross absorption for the county increased 4.08% The third quarter of has shown no signs of slowing down. Any softening of statistics is related to the lack of premier space but is expected to be rapidly backfilled as new construction projects are built. Full building and full floor leases before construction is completed are becoming a trend in San Mateo County. In this quarter alone, San Mateo County kicked off three new construction projects and received four development approvals. Another trend is the migration of tech companies, whether it be a relocation or expansion, from Silicon Valley up to San Mateo County. Amongst them were SurveyMonkey and Uber who relocated this quarter, and Box.net and Google in recent quarters. The San Mateo County economy is not letting up either. According to the State of California Employment Development Department, San Mateo County has the lowest unemployment rate in the entire state at 3.30%. A market with the highest demand for employment coupled with high demand for premier commercial real estate makes San Mateo County one of the hottest markets in the region. 748,438 87,601 *Source: labormarketinfo.edd.ca.gov Market Trends Relative to prior period Construction Office Rental Rate R&D Rental Rate Industrial Rental Rate *Projected Summary Statistics Previous Quarter Current Quarter 4.89% 124, ,872,836 $4.40 $2.67 $ % (56,838) 254,000 1,618,836 $4.37 $2.86 $0.94 Percentage Change Total Jobs Personal Care Aides 68.5% 56.6% 46.7% 46.7% 910 1, ,260 Logisticians 42.4% 1,780 Market Research Analysts & Marketing Specialists 41.3% 14,480 Direct Vacancy vs. Sublease Vacancy Rates San Mateo County All Products Construction Completed 7% 6% 5% 4% 3% 2% 1% 0% Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Direct Vacancy Rate Under Construction Office Asking Rents (FS)* Sublease Vacancy Rate Direct Vacancy Rate 8% Sublease Vacancy Rate Overall vacancy rate increased 13 basis points from 4.89% to 5.02%, direct vacancy increased 22 basis points, and sublease vacancy decreased by 10 basis points since last quarter. Q4 * Overall Vacancy Rate 2.0% 1.8% 1.6% 1.4% 1.2% 1.0% 0.8% 0.6% 0.4% 0.2% 0.0% Q3 Vacancy Q3 All Products 9% 3.30% R&D Asking Rents (NNN)* Industrial Asking Rents (NNN)* *Asking Rents Reported Monthly Economic Indicators Occupations with Fastest Job Growth Biomedical Engineers Economists Statisticians *Source: labormarketinfo.edd.ca.gov

2 Office > > Vacancy rates in the San Francisco Peninsula are at historic lows > > The largest deal, year-to-date, took place this quarter The office vacancy rate on the Greater San Francisco Peninsula (includes San Mateo County, Palo Alto, Mountain View, and Los Altos) continues to find new historic lows, closing the third quarter of at a startling rate of 5.97%. San Mateo County broke the long term trend with a very nominal increase to 7.72%; for all intents unchanged from last quarter s rate of 7.68%. Surprisingly, given the dearth of total space available in the market, gross absorption (a measure of all leasing activity) for the Greater San Francisco Peninsula remains robust, while the total for San Mateo County is 707,506 square feet, falling below long term averages. The broader market of the Greater San Francisco Peninsula saw gross absorption of 1,325,358 square feet for the quarter, largely driven by strong leasing activity in Palo Alto, which absorbed 555,348 square feet. While rent growth continues in the region s strongest markets, overall rates on the Peninsula remained essentially unchanged for the quarter. Slight retreats in some peripheral markets such as Burlingame and South San Francisco offset the 3.12% increase seen in the past quarter in Palo Alto and the 10.58% rise in Mountain View. San Mateo County Office Rent vs. Vacancy 25% 20% 15% 10% 5% 0% 2005 Total Vacancy Rate Average Asking Rents (FS) San Mateo County Office vs. Gross Absorption 2,000,000 1,500,000 $5.00 $4.50 $4.00 $3.50 $3.00 $2.50 $2.00 $1.50 $1.00 $0.50 $0.00 Bay Meadows Station 1,000, ,000 0 (500,000) (1,000,000) 2005 Gross Absorption Source: WilsonMeany.com The most significant lease this quarter, and one of the largest of the year, is SurveyMonkey s 210,000 square foot relocation to San Mateo, kicking off Wilson Meany s transit-oriented Bay Meadows Station development. Palantir leased 38,700 square feet at 261 Hamilton Avenue and Amazon leased 59,000 square feet at 101 Lytton Avenue (the former SurveyMonkey.com headquarters). These were two of the largest leases in that submarket this year. Another large Peninsula deal is Rovi s 103,904 square foot sublease at 2 Circle Star Way in San Carlos. With the flood of new construction on the Peninsula, larger users have been able to, for the time being, return to the market. We anticipate leasing activity to remain strong through the end of and beyond. San Mateo County Office Gross Absorption by Size Range 20.38% 14.69% 9.84% 16.74% 23.06% 15.30% 2,999 3,000-4,999 5,000-9,999 10,000-19,999 20,000-49,999 50,000 2 San Francisco Peninsula Research & Forecast Report Q3 Colliers International

3 Industrial > > Large deal brings Redwood City vacancy down to 0.15% > > Gross absorption increased 19.49% since the last quarter The industrial market in San Mateo County has held its ground. Vacancy has been almost nonexistent increasing slightly from 2.65% last quarter to 3.08% this quarter. The slight increase in vacancy can be attributed to a few large blocks of space that are expected to be absorbed in a short period of time. Gross absorption increased from 430,063 square feet in the previous quarter to 513,884 square feet this quarter. The increase in gross absorption indicates strong deal volume. This brings the year-to-date gross absorption total to 1,525,259 square feet. Another strong indicator of a healthy industrial market is the sublease vacancy rate of 0.09% that can be attributed to a lack of inventory and companies using all of the space they currently occupy. San Mateo County absorbed negative 168,867 square feet of net absorption this quarter, bringing the year-to-date total to negative 85,218 square feet. The average asking rent dropped 4.26% from $0.98 NNN to $0.94 NNN. This does not necessarily mean asking rents are waning because in a market with such low vacancy, even small changes may move the needle Mills Way San Mateo County Industrial Rent vs. Vacancy 12% 10% 8% 6% 4% 2% 0% San Mateo County Industrial vs. Gross Absorption 1,000, , ,000 Total Vacancy Rate Average Asking Rents (NNN) $1.20 $1.00 $0.80 $0.60 $0.40 $0.20 $ , ,000 0 (200,000) (400,000) (600,000) (800,000) Gross Absorption Source: Colliers.com/RedwoodCity Colliers International was involved in two of the largest industrial deals on the San Francisco Peninsula this quarter. Colliers International represented Carbon3D in their deal to expand into a new 87,262 square foot office/warehouse/manufacturing building at 1089 Mills Way in Redwood City, owned by 1089 Mills Way LLC. The execution of this lease brought the vacancy rate in Redwood City down from 2.09% to 0.15%. Colliers International also represented OnTrac in their deal to lease 112,400 square feet of industrial space at 229 Littlefield Avenue in South San Francisco, owned by Prologis. As the year begins to round out, the industrial market in San Mateo County continues to peak, rents remain on an upward trend, with vacancy experiencing downward pressure. Expect more of the same in the next quarter and a strong start to 2016 barring any major setbacks in the broader economy. San Mateo County Industrial Gross Absorption by Size Range 73.88% 2.79% 1.51% 2.80% 8.90% 10.11% 2,999 3,000-4,999 5,000-9,999 10,000-19,999 20,000-49,999 50,000 3 San Francisco Peninsula Research & Forecast Report Q3 Colliers International

4 R&D > > Gross absorption increased 277% since last quarter > > Vacancy continues to drop while rent increases The R&D market has had another strong quarter on the San Francisco Peninsula. Average asking rents have increased 7.12% since last quarter from $2.67 to $2.86 NNN, which is a 35.55% increase from a year ago when it was $2.11 NNN. The vacancy rate dropped from 3.51% to 3.16%, making this the lowest rate on record. The vacancy rate has continuously decreased each quarter for five consecutive quarters now. Compared to when the R&D market was at its lowest with 19.78% vacancy in Q2, vacancy has dropped 1,662 basis points. The R&D market in San Mateo County has had remarkable improvement since then, noting that 48% of the top twenty-five venture capital funded biotech companies in the Bay Area are located in San Mateo County. Net absorption for the quarter was measured at 140,526 square feet, bringing the year-to-date total to 331,740 square feet. This is the fifth consecutive quarter to have positive net absorption, with only one quarter to be negative in the past ten quarters. Gross absorption increased 277% from 139,408 square feet last quarter to 525,273 square feet this quarter. The majority of that absorption was a result of Genentech s 254,000 square foot build-to-suit that was completed in South San Francisco at 1475 Grandview Drive. Genentech is constructing another build-to-suit on the adjacent parcel at 1511 Grandview Avenue that will be 71,645 square feet and expected to be completed in Q Gilead s Campus Expansion San Mateo County R&D Rent vs. Vacancy 25% 20% 15% 10% 5% 0% 600, , , , , ,000 0 (100,000) Total Vacancy Rate Average Asking Rents in NNN San Mateo County R&D vs. Gross Absorption $3.50 $3.00 $2.50 $2.00 $1.50 $1.00 $0.50 $0.00 (200,000) (300,000) (400,000) Gross Absorption Source: BizJournals.com San Mateo County R&D Gross Absorption by Size Range 2.92% Another significant deal involved the sale of Chess Drive in Foster City. Northwestern Mutual and Sea Cliff Properties sold the 190,000 square foot project to Gilead Sciences Inc., who plans to redevelop the site and use the existing entitlements to construct approximately 800,000 square feet of R&D space for their occupancy. This is another major push for Gilead who has dominated the Foster City R&D market. While the R&D market is beginning to hit a critical apex, expect a continued upward shift in asking rents and downward pressure on vacancy in San Mateo County. 6.16% 6.84% 48.36% 14.49% 21.24% 2,999 3,000-4,999 5,000-9,999 10,000-19,999 20,000-49,999 50,000 4 San Francisco Peninsula Research & Forecast Report Q3 Colliers International

5 Significant Lease Activity Genentech Inc Grandview Drive, South San Francisco July 254,000 - R&D DALY CITY SAN BRUNO/ MILLBRAE BRISBANE SOUTH SAN FRANCISCO BURLINGAME SAN FRANCISCO BAY FOSTER CITY Alios Bio Pharma Inc. 169 Harbor Way, South San Francisco July 48,973 - R&D OnTrac 229 Littlefield Avenue, South San Francisco July 112,400 - Industrial SurveyMonkey.com 3050 S. Delaware Street Station 4, San Mateo August 210,000 - Office SAN MATEO REDWOOD SHORES Uber 959 Skyway Road, San Carlos September 20,246 - Office BELMONT/ SAN CARLOS Rovi Corporation 2 Circle Star Way, San Carlos August 103,904 - Office REDWOOD CITY MENLO PARK Pacific Biosciences 1315 O Brien Drive, Menlo Park July 180,000 - Industrial Carbon3D Inc Mills Way, Redwood City September 87,262 - Industrial Significant Sale Activity PROPERTY ADDRESS SALE DATE SIZE SELLER/BUYER TYPE 2121 S. El Camino Real, San Mateo September 275,465 Investcorp Office Airport Boulevard, Burlingame September 262,178 H&Q Asia Pacific Office Cherry Avenue, San Bruno July 196,717 Google Office Fashion Island Boulevard, San Mateo July 130,844 New York Life Insurance Company Office 4085 Campbell Avenue, Menlo Park August 58,963 Union Investment Real Estate GmbH Office 831 Industrial Road, San Carlos April 18,780 Windy Hill Property Ventures Industrial Brittan Avenue, San Carlos August 16,898 Novo Construction Industrial 5 San Francisco Peninsula Research & Forecast Report Q3 Colliers International

6 MARKET COMPARISONS OFFICE MARKET CLASS BLDGS TOTAL INVENTORY DIRECT DIRECT SUBLEASE SUBLEASE TOTAL CURRENT QUARTER PRIOR QUARTER CURRENT OCCUPIED CURRENT NET ABSORPTION NET ABSORPTION YTD WEIGHTED AVG ASKING RENTAL (FS) SOUTH PENINSULA* MOUNTAIN VIEW/LOS ALTOS A 35 3,833,209 8, % % 8, % 0.17% 3,824,917 (1,728) 960,141 $8.31 B/C 144 2,638,764 80, % % 80, % 2.97% 2,558,482 (3,855) (4,736) $5.41 Total 179 6,471,973 88, % % 88, % 1.30% 6,383,399 (5,583) 955,405 $6.43 PALO ALTO A 67 4,740,717 70, % 4, % 75, % 1.08% 4,665, , ,570 $8.48 B/C 187 5,608, , % 14, % 134, % 4.58% 5,473, ,395 78,353 $6.24 Total ,348, , % 19, % 209, % 3.00% 10,139, , ,923 $7.61 SAN MATEO COUNTY MENLO PARK A 48 1,909, , % 4, % 124, % 6.85% 1,784,253 5,764 (249) $10.28 B/C 135 3,890,719 93, % 8, % 102, % 2.48% 3,788,092 (8,830) 38,103 $6.58 Total 183 5,799, , % 13, % 227, % 3.94% 5,572,345 (3,066) 37,854 $8.46 REDWOOD CITY A 27 2,622, , % % 102, % 4.37% 2,520,026 11,566 (7,942) $4.75 B/C 126 2,193, , % 8, % 154, % 4.33% 2,039,854 (60,545) (26,294) $4.73 Total 153 4,816, , % 8, % 256, % 4.35% 4,559,880 (48,979) (34,236) $4.74 BELMONT/SAN CARLOS A ,150 17, % % 17, % 1.97% 871,597 0 (846) $4.36 B/C ,870 23, % % 23, % 2.93% 936,585 4,850 22,608 $3.97 Total 66 1,849,020 40, % % 40, % 2.47% 1,808,182 4,850 21,762 $4.22 REDWOOD SHORES A 49 5,409, , % 47, % 353, % 6.36% 5,056,724 (9,241) 24,102 $4.57 B/C ,267 23, % % 23, % 5.01% 280,945 (8,083) (3,883) $4.29 Total 62 5,714, , % 47, % 376, % 6.29% 5,337,669 (17,324) 20,219 $4.56 SAN MATEO A 30 3,304, , % 30, % 219, % 6.10% 3,085,152 (17,967) (61,473) $4.94 B/C 164 4,759, , % 15, % 384, % 7.13% 4,375,083 (45,547) 106,467 $3.77 Total 194 8,063, , % 46, % 603, % 6.71% 7,460,235 (63,514) 44,994 $4.37 FOSTER CITY A 14 2,697, , % 52, % 297, % 11.05% 2,400,181 1,019 10,445 $4.38 B/C ,202 99, % % 99, % 15.41% 591,542 6,848 10,074 $4.56 Total 45 3,388, , % 52, % 396, % 11.94% 2,991,723 7,867 20,519 $4.42 BURLINGAME A 8 795,912 88, % 1, % 90, % 12.71% 705,183 10,452 28,932 $3.11 B/C 78 2,028,017 69, % 5, % 75, % 5.20% 1,952,750 29,938 (13,765) $2.40 Total 86 2,823, , % 7, % 165, % 7.32% 2,657,933 40,390 15,167 $2.83 SAN BRUNO/MILLBRAE A 9 1,159,195 37, % 3, % 41, % 6.66% 1,118,176 36,150 30,433 $3.75 B/C ,174 50, % 6, % 56, % 5.83% 608,637 (17,762) (19,922) $3.48 Total 43 1,824,369 88, % 9, % 97, % 6.36% 1,726,813 18,388 10,511 $3.58 DALY CITY A 3 501, , % % 174, % 31.30% 326,380 (17,952) (30,523) $3.88 B/C ,376 41, % % 41, % 9.43% 401,533 0 (16,342) $2.69 Total , , % % 216, % 21.03% 727,913 (17,952) (46,865) $3.59 SOUTH SAN FRANCISCO A 18 3,139, , % 33, % 333, % 12.04% 2,805,736 44, ,108 $3.42 B/C 48 1,165,406 32, % 22, % 55, % 4.71% 1,109,946 (1,567) 119,436 $1.94 Total 66 4,304, , % 55, % 388, % 10.08% 3,915,682 42, ,544 $3.34 BRISBANE A 5 663, , % 11, % 338, % 52.12% 325,771 7,909 42,434 $3.48 B/C 6 166,534 5, % % 5, % 3.07% 161,416 0 (5,118) $2.25 Total , , % 11, % 343, % 42.28% 487,187 7,909 37,316 $3.46 SAN MATEO COUNTY MARKET TOTAL A ,092,139 1,908, % 184, % 2,092, % 9.38% 20,999,179 72, ,421 $4.47 B/C ,267, , % 67, % 1,021, % 5.38% 16,246,383 (100,698) 211,364 $4.08 Total ,359,800 2,862, % 251, % 3,114, % 7.68% 37,245,562 (28,497) 367,785 $4.37 QUARTERLY COMPARISON AND TOTALS Q ,359,800 2,862, % 251, % 3,114, % 7.68% 37,245,562 (28,497) 367,785 $4.37 Q ,216,650 2,806, % 280, % 3,087, % 8.23% 37,129, , ,282 $4.40 Q1-15** ,478,049 2,944, % 388, % 3,332, % 10.44% 37,145, , ,544 $4.23 Q ,209,871 3,165, % 508, % 3,674, % 10.74% 31,535, , ,141 $3.84 Q ,209,871 3,279, % 503, % 3,783, % 11.11% 31,426,782 80,102 75,267 $3.80 *THE SOUTH PENINSULA CITIES OF MOUNTAIN VIEW, LOS ALTOS, AND PALO ALTO ARE FOR REFERENCE PURPOSES AS THEY ARE NOT INCLUDED IN THE SAN MATEO COUNTY MARKET TOTALS. **DUE TO A CHANGE IN REPORTING STANDARDS, THERE MAY BE STATISTIC VARIATIONS DURING Q1 THAT ARE NOT REFLECTIVE OF ACTUAL CHANGES IN THE MARKET. 6 San Francisco Peninsula Research & Forecast Report Q3 Colliers International

7 MARKET COMPARISONS R&D MARKET BLDGS TOTAL INVENTORY DIRECT DIRECT SUBLEASE SUBLEASE TOTAL CURRENT QUARTER PRIOR QUARTER CURRENT OCCUPIED CURRENT NET ABSORPTION NET ABSORPTION YTD WEIGHTED AVG ASKING RENTAL (NNN) SOUTH PENINSULA* MOUNTAIN VIEW ,714, , % 33, % 170, % 1.17% 13,543,654 (20,292) (22,588) $3.05 PALO ALTO 59 13,369,975 6, % 57, % 63, % 0.60% 13,306,309 16,494 (24,284) $3.42 SAN MATEO COUNTY MENLO PARK 71 4,011, , % 9, % 133, % 2.50% 3,878,667 (31,815) 20,253 $2.85 REDWOOD CITY/REDWOOD SHORES 73 2,466,728 68, % % 68, % 2.12% 2,398,146 (16,383) 33,493 $2.37 BELMONT/SAN CARLOS 49 1,662,273 41, % % 41, % 3.24% 1,620,697 12,035 95,108 $2.04 SAN MATEO/FOSTER CITY 61 1,702, % % % 0.00% 1,702, ,228 $2.75 SAN BRUNO/MILLBRAE/BURLINGAME ,079 40, % % 40, % 6.92% 864,366 7,490 (25,113) $1.43 SOUTH SAN FRANCISCO/BRISBANE 105 6,688,573 13, % 254, % 267, % 5.25% 6,420, , ,501 $3.38 SAN MATEO COUNTY MARKET TOTAL Total ,437, , % 263, % 551, % 3.51% 16,885, , ,470 $2.86 QUARTERLY COMPARISON AND TOTALS Q ,437, , % 263, % 551, % 3.51% 16,885, , ,470 $2.86 Q ,020, , % 299, % 597, % 3.89% 16,422,781 38, ,944 $2.67 Q1-15** ,342, , % 315, % 673, % 5.21% 16,668, , ,695 $2.98 Q ,873, , % 310, % 826, % 6.37% 15,047,086 91, ,979 $2.32 Q ,873, , % 302, % 1,010, % 8.99% 14,862,969 84,472 89,562 $2.11 INDUSTRIAL MARKET SOUTH PENINSULA* MOUNTAIN VIEW 145 1,742,798 11, % % 11, % 0.12% 1,731,708 (9,090) (1,310) $2.07 SAN MATEO COUNTY MENLO PARK 86 2,683,675 51, % % 51, % 0.28% 2,632,569 (43,606) 24,623 $1.54 REDWOOD CITY 186 4,167,237 6, % % 6, % 2.09% 4,160,937 80, ,133 $1.35 BELMONT/SAN CARLOS 234 6,100, , % 4, % 105, % 0.78% 5,995,081 (58,326) (51,148) $1.30 SAN MATEO/FOSTER CITY 76 1,392,893 15, % % 15, % 1.10% 1,377, ,246 $1.68 BURLINGAME 138 3,992,667 88, % % 88, % 2.64% 3,904,315 17,178 29,161 $1.15 SAN BRUNO/MILLBRAE , % % % 0.00% 602, $0.00 BRISBANE/DALY CITY 102 5,205, , % % 304, % 5.23% 4,901,754 (31,799) 35,319 $0.77 SOUTH SAN FRANCISCO ,320, , % 29, % 642, % 3.32% 14,678,072 (133,276) (276,552) $0.87 SAN MATEO COUNTY MARKET TOTAL Total 1,236 39,466,561 1,180, % 33, % 1,214, % 2.65% 38,252,549 (168,867) (85,218) $0.94 QUARTERLY COMPARISON AND TOTALS Q3-15 1,236 39,466,561 1,180, % 33, % 1,214, % 2.65% 38,252,549 (168,867) (85,218) $0.94 Q2-15 1,235 39,504, , % 55, % 1,045, % 2.52% 38,459,094 (96,375) 83,649 $0.98 Q1-15** 1,235 39,196, , % 42, % 986, % 3.02% 38,209, , ,024 $0.88 Q4-14 1,259 40,852,516 1,192, % 43, % 1,235, % 3.32% 39,616, , ,559 $0.86 Q3-14 1,259 40,852,516 1,228, % 127, % 1,355, % 3.93% 39,497, , ,084 $0.85 *THE SOUTH PENINSULA CITIES OF MOUNTAIN VIEW, LOS ALTOS, AND PALO ALTO ARE FOR REFERENCE PURPOSES AS THEY ARE NOT INCLUDED IN THE SAN MATEO COUNTY MARKET TOTALS. **DUE TO A CHANGE IN REPORTING STANDARDS, THERE MAY BE STATISTIC VARIATIONS DURING Q1 THAT ARE NOT REFLECTIVE OF ACTUAL CHANGES IN THE MARKET. 7 San Francisco Peninsula Research & Forecast Report Q3 Colliers International

8 502 offices in 67 countries on 6 continents United States: 140 Canada: 31 Latin America: 24 Asia Pacific: 199 EMEA: 108 $2.3 billion in annual revenue 1.7 billion square feet under management COLLIERS INTERNATIONAL REDWOOD CITY 203 Redwood Shores Parkway, Suite 125 Redwood City, CA USA colliers.com/redwoodcity MARKET CONTACTS: Rick Knauf Executive Managing Director CA License No rick.knauf@colliers.com Cindy Tran Market Research Analyst cindy.tran@colliers.com AngeLin Vo Senior Graphic Designer CONTRIBUTING AUTHORS: Mike Cobb Senior Vice President Mike Davis Senior Vice President 16,300 professionals and staff About Colliers International Colliers International Group Inc. (NASDAQ: CIGI; TSX: CIG) is a global leader in commercial real estate services with more than 16,300 professionals operating from 502 offices in 67 countries. With an enterprising culture and significant insider ownership, Colliers professionals provide a full range of services to real estate occupiers, owners and investors worldwide. Services include brokerage, global corporate solutions, investment sales and capital markets, project management and workplace solutions, property and asset management, consulting, valuation and appraisal services, and customized research and thought leadership. Colliers International has been ranked among the top 100 outsourcing firms by the International Association of Outsourcing Professionals Global Outsourcing for 10 consecutive years, more than any other real estate services firm. For the latest news from Colliers International, visit Colliers.com or follow us on Twitter (@ColliersIntl) and LinkedIn. colliers.com Copyright Colliers International. The information contained herein has been obtained from sources deemed reliable. While every reasonable effort has been made to ensure its accuracy, we cannot guarantee it. No responsibility is assumed for any inaccuracies. Readers are encouraged to consult their professional advisors prior to acting on any of the material contained in this report.