OFFICE 2012 OFFICE HAMPTON ROADS MARKET REVIEW. Author. Data Analysis. Financial Support. Disclosure

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1 HAMPTON ROADS MARKET REVIEW OFFICE Author Data Analysis Financial Support Disclosure Casey J. O Hearn Associate Vice President Jones Lang LaSalle Geoff Thomas Research & Financial Analyst Jones Lang LaSalle The E. V. Williams Center for Real Estate and Economic Development (CREED) functions and reports are funded by donations from individuals, organizations and the CREED IPAC and Council Advisory Boards. The data used for this report are deemed reliable; however, neither Old Dominion University, the E. V. Williams Center for Real Estate and Economic Development, nor sponsoring companies and/or individuals makes any representation or warranty as to its accuracy. 212 OFFICE 39

2 212 O F F I C E General Overview T he Hampton Roads office market ended 211 with positive absorption year over year but overall, the statistical performance reflected another sluggish year end with a luke warm outlook on potential growth through 212. Still representing a tenant-oriented marketplace driven by economic incentives and stagnant leasing activity, the Hampton Roads office market is forecasted to have another year of sluggish growth with the 212 elections on the horizon affecting the local core defense industry. The 4th quarter 211 overall vacancy rate for Hampton Roads decreased to 13.5% from the 4th quarter 21 rate of 14.6%. This positive absorption can be credited to no new product being delivered to the Hampton Roads office market in 211. Hampton Roads did outperform the national office market vacancy rate which finished 211 down twenty basis points from the end of 21 at 16.% direct vacancy. However, the total vacancy for the national office market finished 211 at 17.6% reflecting a significant amount of sublease space throughout the market. METHODOLOGY The information in this report relies on market reports from the RCAnalytics, REIS, the CoStar Group Inc., and individual interviews of local office brokers. The methodology or parameters of building size included in the report for all of Hampton Roads were 2, SF and higher for the largest completed lease transactions in 211; 5, SF and higher were included for the top completed office building sales transactions in 211; approximately five acres and higher were included for the top completed office land sales transactions in 211; and 2, SF and higher were included for top new construction deliveries in Hampton Roads Real Estate Market Review 4

3 STILL KICKING THE CAN DOWN HAMPTON ROADS Economy The Hampton Roads economy has taken a discernible blow in the past two quarters. Major changes in defense spending and private industry out of state relocations have created economic tension for the area. This migration will most likely be reflected in the first quarters of 212. Contrary to recent events, unemployment is still on a downward trend. Preliminary data suggests the November unemployment rate fell 3 basis points from October to 6.7 percent. Gross metro product has actually climbed by 9 basis points, signaling no slow down in Hampton Roads' output. Considerable achievements have been made to improve the areas ports and alleviate traffic congestion by expanding the Midtown tunnel. Gaps left by the decommissioned USJFCOM have been partially filled by the expansion of Navy Cyber Forces. However, reflecting on recovery progress of other Virginia cities, Hampton Roads has seen the smallest percentage increase in GDP, increases in credit delinquencies, and still heavy dependence on defense spending. Market Conditions Endogenous shocks that occurred in the end of 211 will likely be felt into 212, decelerating forward progress. Tour activity has been extremely active with a major increase in defense contractors shopping for space. The expansion of Navy Cyber Forces has caught the eye of technology firms-one industry which Hampton Roads lacks. Although the activity looks promising, the area has just witnessed a major outflow of tenants. Current tenants in the market are taking advantage of vacancies and consolidating offices, others are looking to relocate to more desirable properties. Pricing Demand Supply Key Market Indicators Supply 3,934,9 sf Direct vacancy rate 13.5 % 12-month forecast Although major steps have been taken to improve the local economy, Hampton Roads relies on two industries: defense and shipping. Past events have proven that one pen stroke can severely impair the area s economic vitality and Hampton Roads is not Total vacancy rate Under construction (% preleased) Leasing activity 12 mo. % change YTD net absorption 12-month overall rent % change Class A overall asking rent Class B overall asking rent 13.9% 262,289sf 1.2% 44,36 sf -4.1% $21.27 psf $16.48 psf out of the woods yet. Current plans to relocate one of the area s three carrier divisions to Florida has the possibility of removing 6, jobs and $425 million in annual revenue. Green Mountain Coffee recently opened a facility in Isle of Wright, but rumors are circulating that they will be losing their patent for the K-Cup instant-brew packaging in 213, which may severely affect their revenue if other coffee companies can now compete with Green Mountain lines. 212 OFFICE 41

4 212 O F F I C E Net New Supply, Net Absorption and Total Vacancy 1,2, 2% Square Feet 8, 4, 15% 1% 5% -4, % Net New Supply Net Absorption Total Vacancy Leasing Activity vs. Sublease Vacant Space 2,, Square Feet 1,5, 1,, 5, Leasing Activity Sublease Space Sublease space includes vacant space Outlook Conditions in Hampton Roads are not going to improve significantly in 212. Most likely, commercial real estate markets need to restabilize after the last wave of negative absorption. Continued reliance on defense spending will most likely keep growth on standby as the market holds its breath for the 212 elections. Tenant Perspective Tenants are still controlling the market in Hampton Roads with vacancy rates driving concession packages. Forward looking tenants should lock-in longer terms to take advantage of lower rental rates. Longer terms will ultimately provide stronger concessions packages which currently run $2 to $3 dollars per square foot per lease year for a new deal. Hampton Roads is currently one of the least expensive areas for businesses in the State of Virginia. The combination of state and local government support and tenant concessions provides favorable leasing conditions for new tenants. Speculative development is all but nonexistent and developers, due to financing constraints, are only able to build when a credit tenant has signed a long term lease. New construction should remain sluggish as the market absorbs existing high vacancies and does not warrant additional supply. 212 Hampton Roads Real Estate Market Review 42

5 Landlord Perspective The objective of landlords is to hold onto warm bodies. A shallower tenant pool should ultimately continue the trend of effective lower rental rates, slightly into 212. Concession packages will not be as aggressive as 211, but should still remain competitive. Industry diversification will be the most effective way to stabilize the office market. Property owners must encourage local officials to provide better incentives to attract new companies to the market. Class A Overall Asking Rents $25 Class A Tenant Improvement Allowance $2 $2 $ Square Feet $15 $1 $5 $ Square Feet $1 $ $ Peninsula Southside Peninsula Southside Class A Free Rent 8 Class A Blocks of Vacant Contiguous Space 2 Months Peninsula Southside Number of Blocks , - 5, sf 5, - 1, sf 1 1, - 2, sf >2, sf 212 OFFICE Peninsula Southside 43

6 212 O F F I C E Submarket Leverage Market History and Forecast Submarket Newport News Hampton Williamsburg Yorktown Norfolk Virginia Beach Portsmouth Chesapeake Suffolk Property Clock Current Market Conditions Landlord Leverage Peaking Market Rising Market Falling Market Bottoming Market Peninsula Southside Tenant Leverage Landlord-favorable conditions Tenant-favorable conditions Balanced conditions Completed Lease Transactions Tenant Address Submarket SF Type Navy Cyber Forces 116 Lake View Parkway Suffolk 125, Expansion US Coast Guard 3 Main Street Norfolk 121,643 Renewal Hewlett-Packard Development Company, L.P Crossways Boulevard Chesapeake 112,297 Renewal AMSEC 55 Wood Lake Circle Chesapeake 67,615 Renewal SSAI 28 Golden Court Virginia Beach 63,29 Renwal Norfolk Department of Human Services 741 Monticello Ave Norfolk 6, Renewal General Dynamics Information Technology, Inc 7 Independence Parkway Chesapeake 59,59 Renewal Sentara 1441 Crossways Boulevard Chesapeake 54,476 Renewal AECOM 741 Monticello Avenue Norfolk 35, Expansion SAIC 2877 Guardian Lane Virginia Beach 32, New SDV Properties LLC 133 Waller Mill Rd Williamsburg 28,764 New Amerigroup 131 Executive Boulevard Chesapeake 25,5 New Strayer University 675 Old Oyster Point Road Newport News 25, New Crescent Recovery 51 Independence Boulevard Chesapeake 23,424 Renewal CDYNE Corporation 55 Independence Boulevard Chesapeake 23,328 New Commonwealth of VA, Dept. of General Services 26 Washington Ave Newport News 23,129 Renewal H&A Architects & Engineers Central Park Ave Virginia Beach 23, New Bon Secours 14 University Boulevard Portsmouth 13,729 New CACI 999 Waterside Drive Norfolk 11,6 Expansion Hunton Williams World Trade Center Norfolk 1, New Harry Jernigan CPA, PC 511 Cleveland St Virginia Beach 9,481 New PAPCO, INC 511 Cleveland St Virginia Beach 6,5 New Hampton Roads methodology: Inventory includes all Class A, B, & C office properties > 2, square feet, excluding all condo, medical and government owned buildings, and owner occupied buildings 212 Hampton Roads Real Estate Market Review 44

7 Top Completed Office Building Sales/Transactions Address Submarket Buyer / Seller SF $ PSF Greenbrier Circle Chesapeake First Potomac Realty / Parkway Properties 173,456 $ Cleveland St Virginia Beach Olympia Development Corp / The Custom Shop 55th Street Corp. 133, $95 78 Lynnhaven Pkwy Virginia Beach Continental Capital Management / 77,622 $19 Cox Communications 2697 International Pkwy Virginia Beach CPC Realty / Rosemont Realty 64,186 $84 85 Live Oak Dr Chesapeake WT Holdings, LLC / Roland L Jr & Laura C Ore 22,6 $ E Brambleton Ave Norfolk JMCG Norfolk LLC / Regions Bank 16,334 $ Pacific Ave Virginia Beach 371 Pacific Avenue Assocs, LLC / Brasco Bay Corp 9,827 $ Madison Plz Chesapeake Tidewater Emergency Medical / Towne Station LLC 7,486 $ Business Center Dr Chesapeake WB & E Holdings LLC / Heard Pumping LLC 7,8 $115 Source: RCAnalytics, REIS, CoStar Group, Inc. Top Completed Office Land Sales/Transactions Address Submarket Buyer / Seller Acres $ PSF Civic Center parking Lot (Water St) Portsmouth Oxford Properties LLC / City of Portsmouth 4 $9,/$2 Source: RCAnalytics, REIS, CoStar Group, Inc. Top Select New Construction Deliveries (211) Address Submarket Buyer / Seller SF 5424 Discovery Park Blvd Williamsburg AH Williamsburg Medical, LLC 4, 65 Harbour View Blvd Suffolk Towne Bank 39, Old Oyster Point Rd Newport News Divaris Real Estate Inc 33, 41 Old Oyster Point Rd Newport News Divaris Real Estate Inc 33, Source: RCAnalytics, REIS, CoStar Group, Inc. 212 OFFICE Hampton Roads methodology: Inventory includes all Class A, B, & C office properties > 2, square feet, excluding all condo, medical and government owned buildings, and owner occupied buildings 45

8 212 O F F I C E Class A Office Market Statistics Hampton Roads (Year-end 211) Peninsula 32 2,773,77 311, ,4 12.5% 9,16 6, $19.8 Southside 96 9,483,513 1,35,149 1,331, % 77,765 39,399 61,98 $21.71 Totals ,161,52 1,616,82 1,676, % 86,781 39, ,98 $21.27 Class B Office Market Statistics Hampton Roads (Year-end 211) Peninsula 11 4,981,84 654,99 671, % 86,888 16, $15.79 Southside 24 11,398,65 1,747,469 1,781, % (149,262) 27,476 92,3 $16.71 Totals ,379,689 2,42,378 2,452, % (62,734) 133,476 92,3 $16.48 Class C Office Market Statistics Hampton Roads (Year-end 211) Peninsula 2 769,276 7,442 7, % 3,413 $9.95 Southside 44 1,528,652 99,621 99, % (1,514) $13.1 Totals 64 2,297,928 17,63 17,63 7.6% 19,899 $1.36 Total Office Market Statistics Hampton Roads (Year-end 211) Peninsula 153 8,524,13 1,37,4 1,87, % 126,317 16, 18, $16.7 Southside 38 22,41,77 4,189,243 3,212, % (82,11) 66, ,28 $19.1 Totals 533 3,934,9 5,618,212 4,299, % 44,36 239,75 262,289 $18.51 Class A - Significant Office Market Statistics Hampton Roads (Year-end 211) Downtown Norfolk Harbour View Oyster Point VA Beach CBD Totals Source: CoStar Group, Inc ,39, ,149 1,95,22 1,238,264 5,337, , , ,327 73,194 67,65 319, , ,28 73, , % 22.6% 12.6% 5.9% 13.5% (16,49) 26,188 3,218 4,893 81, %.3% 16.5% 15.8% 18.8% 212 Hampton Roads Real Estate Market Review 46

9 Class B - Significant Office Market Statistics Hampton Roads (Year-end 211) Downtown Norfolk Harbour View Oyster Point VA Beach CBD Totals Source: CoStar Group, Inc ,185, ,862 2,,458 78,71 5,383, ,763 1, ,181 92, , ,963 1, ,859 96, , %.3% 16.5% 15.8% 18.8% (51,135) 12,959 28,374 (63,554) (73,356) 66, 66, $16.71 $26. $15.87 $17.22 $16.55 Class C - Significant Office Market Statistics Hampton Roads (Year-end 211) Downtown Norfolk Harbour View Oyster Point VA Beach CBD Totals Source: CoStar Group, Inc , ,673 47,872 31, 5,932 36,932 31, 5,932 36, %.% 3.5%.% 9.1% 2,672 2,672 NA NA $14.75 N/A $14.75 Significant Office Market Statistics Hampton Roads (Year-end 211) Downtown Norfolk Harbour View Oyster Point VA Beach CBD Totals Source: CoStar Group, Inc ,73,654 1,184,11 3,267,333 1,946,965 11,128, ,46 155, ,44 166,82 1,68, , ,35 473,819 17,123 1,719, % 13.4% 14.5% 9.5% 15.9% (67,184) 39,137 61,264 (22,661) 1,566 66, 66, REGIONAL OFFICE MARKET COMPARISON The relative vitality of the Hampton Roads office market can be more clearly illustrated by comparing the area s 211 performance to the nearby Virginia markets of Richmond, the District of Columbia, as well as the North Carolina markets of Raleigh-Durham and Charlotte. Clearly our regional competitive areas fared well in comparison to the United States national office vacancy rate. $19.38 $24.11 $17.14 $19.84 $ OFFICE Q4 211 DATA FROM COSTAR OFFICE MARKET REPORT The office vacancy rate in the Richmond, VA office market area ended the year at a direct vacancy of 1.9% and total vacancy of 11.8%. In Raleigh-Durham, NC the market closed the year at 16.% direct and 16.8% total. The Charlotte, NC market finished at 16.8% direct and 18.1% total. And finally the office vacancy rate in the District of Columbia (Washington D.C.) office market finished 211 at 13.% direct vacancy and 14.2% total. 47

10 211 Office Building Directory DOWNTOWN NORFOLK 15 West Main Street ,183 Bank of America , Crown Center , Dominion Tower ,276 Fort Norfolk Medical Office Tower , Main Street Tower , Norfolk Southern Tower ,463 Town Point Center ,266 World Trade Center ,941 Wells Fargo Center , 11 Granby Street , 141 W. Virginia Beach Blvd. (ABC Building) , 21 Granby Mall Building ,71 25 W. Brambleton Avenue , W. Freemason , 5 Plume Street , 5 E. Main St. (BB&T) , City Centre ,138 Hague Medical Center ,659 Madison Office Building , Monticello Arcade ,5 The Monticello Building , Plume Center West ,375 RBC Centura Tower ,6 St. Paul Building ,38 Seaboard Center , Tazewell Building , The Helena Building ,1 Towne Bank Building ,698 Wainwright Building ,151 York Street Center , West Freemason Street , Granby Street , 4 Gresham Drive (The Medical Building) ,867 7 Monticello Avenue ,76 7 Boush Street ,825 Anders Williams Building , Duke Grace Building ,417 Ghent-Olney Building , Lonsdale Building , Norfolk Community Services ,192 Wainwright Building ,318 AT&T , Atlantic Building , Decker Building , Dominion Enterprises , Landmark Communications ,5 Norfolk Telcom Center , Peta , Standard Forms , Two Commercial Place ,45 Virginian Pilot Building ,141 AIRPORT/NORTHAMPTON Twin Oaks I , Twin Oaks II , The Concourse , Airport Executive Center ,69 Circle South , HRSA-ILA Bldg (Longshoremen s) ,678 Northhampton Executive Center corrected buiding size ,94 Electrical Workers Corporation Office ,2 212 Hampton Roads Real Estate Market Review CMA/CGM (USA) , Commander Corporate Center , Silver Oak ,2 Zim-American Israeli Shipping , CENTRAL NORFOLK 1 Kingsley Lane, DePaul Health Park , 11 Kingsley Lane, DePaul Medical Building....39,54 16 Lingsley Lane, DePaul Medical Atrium , 241 Corporate Blvd. (VA Eye Development) ,7 93 Majestic Avenue ,5 536 Robin Hood Road , Almeda Business Center (flex) , Central Center Office Building ,815 Commerce Park Place(flex) ,783 Gateway II(flex) , Lafayette Executive Center ,641 Lawson Building ,22 Norfolk Business Center (flex) , Norfolk Business Center II (flex) ,926 Norfolk Commerce Center I(flex) , Norfolk Commerce Center III(flex) , Norfolk Commerce Center IV(flex) ,98 Norfolk Commerce Center V(flex) , 41 Building ,614 Atlas Building ,476 Blair Building , Southern Office Building ,61 Time Building , American Funds Building , CHESAPEAKE/GREENBRIER BECO Corp HQ (69 Independence) ,4 Crossways Center ,72 CHKD Health Center (Volvo Park VI) , Chubb Building ,5 Dendrite One , Dendrite Two , EDS Crossways Blvd , Greenbrier Tower I ,9 Greenbrier Tower II ,976 HR Realtors Association Bldg (638 Independence).4, Independence Place ,345 Lake Center I , Lake Center II , Liberty One , Liberty Two , Liberty Three , 143 Greenbrier Parkway (Gateway Bank) , Atlantic Business Center , Battlefield Corporate Center , Battlefield Lakes Tech Center I ,5 Battlefield Lakes Tech Center II , Battlefield Lakes Tech Center III , Battlefield Technology Center ,578 Battlefield Technology Center I , Battlefield Technology Center II (MCI) ,478 Branch Executive Quarter-Hamilton ,6 Branch Executive Quarter-Jefferson ,838 Branch Executive Quarter-Madison ,788 Chelsea Commons WCMB ,4 158 Crossways Blvd ,8 Crossways Commerce Center II ,3 Crossways Commerce Center I , Crossways I ,7 Crossways II (flex) ,751 Crossways III ,992 Dominion Business Center , Eden North Center ,7 Greenbrier Business Centre (flex) ,561 Greenbrier Circle Corporate Center ,138 Greenbrier Executive Center II (I was torn down for a hotel) ,787 Greenbrier Point II , Greenbrier Tech Center One (flex) ,414 Greenbrier Tech Center Two (flex) ,34 Hanbury Office Park , Hanbury Road Business Center , Independence Technology Center I , Rose and Womble Business Center ,432 SunTrust Bank Building , 737 Volvo Parkway , Volvo Park (Progressive Drive) , Volvo VII , Greenbrier Business Center , Greenbrier Square ,25 Heritage Bank Building ,654 Riverwalk Professional Bldg , Woodbrier Terrace , Wright Building , 2125 Smith Avenue ,423 Knells Ridge Plaza ,5 Old Greenbrier Village ,15 Cox Communications , Dollar Tree , First Data ,557 Household Finance , Panasonic Call Center , HILLTOP/OCEANFRONT Pavilion Center (Towne Bank) ,177 Potter Professional Center ,5 William E. Wood Building , 126 Laskin Road Executive Center , Beach Health Pavilion ,8 Beach Tower , Birdneck Office Park ,182 Birdneck Square ,285 Camelot Professional Center ,725 Colonial Mill Professional Center ,555 Damalas Centre ,9 First Colonial Office Park , General Booth Professional Center , Gibson Pavilion , Great Neck Professional Bldg , Heritage Commons , Hilltop West Executive Center , Louisa Avenue Building One , Louisa Avenue Building Two , Louisa Avenue Building Three ,195 Mill Dam Crossing ,37 Rudd Building , Sandpiper Key Associates Bldg , 192 Laskin Road ,24 Oceana East ,36 CORPORATE LANDING Executive Center at Corporate Landing , Princess Anne Executive Park ,756 Verizon Building , Al-Anon , Liberty Tax Service , GEICO , KEMPSVILLE Chadwick Building , Grayson Building , Metroplex , 121 Lake James Office , 3386 Holland Road , 531 Providence Road (Providence South) , 48

11 Arrowhead Office Court , Atrium of College Park Square ,379 Central Park I (552 Central Dr) , Central Park II (544 Central) , College Park Square III ,15 Courtyard at Providence ,879 Fairfield Square ,933 Holland South ,843 Holland/Taft Professional Center ,85 Kempsville Office Park ,722 Oxford Square ,544 Woolpert Building ,7 LYNNHAVEN Chase Building ,91 Lynnhaven Commons Complex , Lynnhaven Commons (office bldg) , Lynnhaven II , Lynnwood Plaza ,157 Marsh Landing ,117 Oceana Center One ,928 Oceana Place ,369 Park West AMSEC ,18 Pinehurst Centre , Reflections I ,924 Reflections II ,676 Reflections III , Reflections IV , Viking Building ,9 Windwood Center , International Parkway , Advanced Technology Building , Basgier Bldg. I ,2 Basgier Bldg. II , Bennett Office Building (12 S. Lynnhaven) ,522 Commercial Place ,4 Gateway Bank Building (641 Lynnhaven) , Lynnhaven Corporate Center I ,46 Lynnhaven Corporate Center II ,3 Lynnhaven Executive Center , Lynnhaven Five ,549 Lynnhaven North , Lynnhaven Professional Center , Lynnhaven Station ,226 Parkway Center 3 and ,567 Parkway Center I & II ,112 Parkway III (Unisys) ,428 Parkway West (flex) ,563 RBM Building ,17 Sabre Street I , Sabre Street II , Sabre Street III , Sabre Street IV , South Lynnhaven Business Park , U.S. Commerce Center (Tidewater Tech) ,819 Yorktown Commerce Center (228 N. Lynnhaven) ,529 Cenit Bank Bldg , Global Technical Systems , Hall Automotive ,865 SAIC , LITTLE NECK 33 Building (Virginia Beach Blvd.) , King s Grant Office Building , Little Neck Office Park (33 Bldg) , Little Neck Office Park (33 South) , Little Neck Office Park (34 Bldg) , Little Neck Towers ,86 Lynnhaven Station 11 North Lynnhaven ( , NEXCOM Building , NEXCOM Expansion , Plaza Trail Office Building ,975 Rose Hall Commons ,266 Rose Hall Professional Center , Rosemont Interstate Center I ,4 49 Rosemont Interstate Center II ,835 Rosemont Interstate Center III* , Sun Building ,6 Transouth Building (3615 VB Blvd) ,5 Birchwood Office Park ,688 Byler Building ,592 Plan-It Building , MILITARY CIRCLE Riverside Commerce Center (12 Corporate Blvd.) 7, Riverside Corporate Center ,682 Centura Bank Building ,442 Circle East ,47 College Park Executive Center , FBI Building , I.T.T. Building ,379 Executive Office - Janaf ,8 Janaf Office Building ,329 Portfolio Recovery Building ,85 Sentara , Union Mission (former VA Natural Gas) ,43 NEWTOWN/WITCHDUCK AAA Headquarters ,45 Amelia Building ,66 Amerigroup Building I , Amerigroup Building II , BB&T Building , Expressway Corporate Center ,658 Gallery I , Gallery II , Greenwich Center , Greenwich Commons , Greenwich Station , Halifax Building ,1 Mass Mutual Building ,5 Smithfield Building , Verizon Center , Westmoreland Building , Business Park Drive , 168 Business Park Drive ,3 184 Business Park Drive , Business Park Drive , Business Park Drive , 396 Witchduck Road , 633 Newtown Road ,181 American Teleservices Building ,232 Azalea Village , BCF Building , BPC Building ,74 Colonial Corporate Center ,772 Commerce Centre (2-259 Expressway Ct) ,5 Commonwealth Building , Interstate Corporate Center , Parliament Drive Professional Bldg , TRC Center I , TRC Center II ,884 TRC Center III , Witchduck Crossing ,326 Witchduck Office Court , Cox Cable Building , Cox Expansion , Copy Data (Ikon) , Lendman , Newtown Square , PEMBROKE/ CENTRAL BUSINESS DISTRICT 249 Central Park Avenue , Convergence Center , Convergence Center II , Convergence Center III , Corporate Center VI , Five Columbus Center , Fulton Bank Plaza ,315 One Columbus Center , OSS Building (former Ticketmaster) , Six Columbus Center , Southport Center , Town Center (222 Central Park) ,9 Town Center North Tower , Two Columbus Center , 471 Columbus , 475 Columbus Street , 481 Columbus Street , Corporate Center I , Corporate Center II ,475 Corporate Center III , Corporate Center IV ,12 Holland Commerce Center , Holland Office Park , Independence Business Center , Independence Technology Center - Technocenter I.5, Independent Plaza ,655 Pembroke Commercial Bldg. (4425 Corporation Lane) 7,76 Pembroke Office Park , Prism Plaza , Southgate Centre ,2 Southport Business Center(flex) (Baskin Bldg)....2,683 Southport Trade Center(flex) ,883 Thalia One ,48 Thalia Professional Center , The Meadows ,433 VST Building , 4224 Holland Road ,14 Dragas Office Park ,896 Haygood Buildings ,392 Haygood Executive Park ,472 Holland Plaza Office Building ,513 Old Donation Executive Park ,347 Larkspur Village ,184 Pocahontas Center ,8 Alantec Financial Fed Credit Union , AVIS , Coastal Training Technologies , Commonwealth College , Electronic Systems Building , ISC , QED Building , REIN Building ,5 Virginia Natural Gas Building ,242 PORTSMOUTH BB&T Building (5 Crawford) ,327 Harbourfront Corporate Center (81 Water St)....53, 37 County Street , Crawford Street Building ,367 6 Crawford Street ,171 Boyette Professional Center , Bristol Square ,8

12 Towne Bank Building (2 High St) , JJH Building ,563 New Kirn Building , PortCentre I (flex) , Port Trade Center ,223 The Seaboard Building , Wachovia Bank , Crawford Executive Center ,34 SUFFOLK MAST One , JTASC Building ,365 Bridgeway Technology Center I , Bridgeway Technology Center II ,5 Bridgeway Technology Center III ,384 Brinkley Building ,5 Brinkley Building II , Harbour Breeze Professional Center ,265 Harbour View Medical Arts Center , Harbor View Professional Center (133 & 135).23, Konikoff Medical Office Building ,675 Lakeview Technology GSA Center , Lakeview Tech Center II ,4 Main Street Center ,8 Washington Street Center , Rubicon NGP - Lakeview Technical Center ,75 Lockheed Martin , Overton Building ,94 Rose & Womble Building , Towne Bank Center ,318 DOWNTOWN HAMPTON Harbour Centre , W. Queens Way , W. Queens Way ,5 Mill Point Center , One Mallory Street , 55 W. Queens Way ,132 DOWNTOWN NEWPORT NEWS 26 Building ,18 Wachovia Bank Building ,846 Newport News Shipbuilding, Bldg , HAMPTON ROADS CENTER 6 Manhattan Square ,16 11 N Campus Parkway , Allstate Building , HealthNet Building ,482 Lakefront Plaza I ,442 Morgan Marrow Building , Olympia Place ,395 Oxford Plaza ,297 Parkway Executive Center , Research Quad - Building One , Research Quad - Building Three , 4 Butler Farm Road , Butler Farm Road , Butler Farm Road ,515 Hampton I ,532 Hampton II , Hampton III , Hampton Technology Center I , Hampton Roads Real Estate Market Review NDS Building , Raytheon , Research Office Building , NASA Langley Research Center , Armistead Avenue ,43 COLISEUM CENTRAL Claiborne Building (Regional Mall Office) , Executive Tower ,164 Pinewood Plaza , Executive Drive , 231 Tower Place ,5 Bank of America Building ,434 Colony Square of Hampton ,5 Riverdale Complex , Sheraton Office Bldg ,673 Todds Lane Professional Center ,5 West Telemarketing ,855 Langley Federal Credit Union ,8 NEWMARKET Newmarket Building ,262 NetCenter ,171 UPS Call Center , Rouse Tower , NN Shipbuilding Employee Credit Union , OYSTER POINT 61 Thimble Shoals Boulevard , Atrium At Oyster Point ,971 Cedar One ,467 Cedar Two , Contemporary Cybernetics , Ferguson Corporate Center II , Fountain Plaza One , Fountain Plaza Two , Fountain Plaza Three , Langley Federal Centre ,982 Merchants Walk , One City Center , One Oyster Point ,226 Oyster Point Interstate Center , Patrick Henry Corporate Center ,883 Riverside Health Center Building (Warwick) ,5 Peninsula Professional Building ,8 Rock Landing Corporate Center II ,476 SunTrust Building ,955 Symantec Corp. Building , Tower Park (733 &735 Thimble Shoals) ,667 Town Center One , TowneBank Center , Two City Center ,6 Two Oyster Point ,137 Turner Bldg (16 Loftis) , Wachovia Building ,921 William E Wood Building (13 Loftis) , 1179 Jefferson Avenue , Bluecrab (flex) , BB&T Plaza (63 Pilot House) ,348 Cale Colony , Canon Place , Comb-Bay Park , Dunwoody Place ,798 Executive Center ,399 Fishing Point Complex(flex) , International Distribution Center , McCale Professional Park , Middle Ground Business Center , Oyster Point Center , Oyster Point Business Center , Oyster Point Place (flex) , Oyster Point West ,56 Park Central Executive Center ,425 Park Place (751 & 753 Thimble Shoals) , Peninsula Business Center I (flex) ,817 Peninsula Business Centre II (flex) ,475 Peninsula Business Centre III (flex) , Rock Landing Corporate Center IV ,125 Rock Landing Corporate Center V ,125 Technology Center (flex) , Thimble Shoals Business Center (flex) ,377 Thimble Shores Lakefront , J.Clyde Morris Blvd , Drucker & Falk Building , Pilgrim Landing ,65 Regent Park , Applied Research Center , Fountain Plaza Two , Muller Martini Building , Peninsula Retail Credit , SUBURBAN NEWPORT NEWS Bay Savings Bank Building , Colony Square of Denbigh II ,1 Denbigh Professional Park ,598 Ferguson Enterprises ,8 MCI Building , Tidewater Tech (616 Denbigh Blvd) ,778 Mariner Building , Teagle Building , CNU Building , WILLIAMSBURG/JAMES CITY/YORK COUNTY 263 McLaws Circle ,967 Atrium Building , Casey New Town - SunTrust , Courthouse Green , Design Center ,7 First Union Center , Langley Federal Credit Union , Williamsburg Commerce Center , Palladian Office Building , Patriot Park Business Center , Sentara New Town Medical Building , Sun Trust (Courthouse St.) , William E. Wood Building , 14 Bypass Road ,1 761 George Washington Memorial Highway.....1, Chartertowne Professional Center ,8 Greens Springs Office Park , Kristinsand Office Park ,221 Packets Executive Center , Quarterland Commons Office Condos , Rivergate Center , Wachovia Bank ,5 Williamsburg Office Park ,6 Disclaimer: The information in this report is deemed reliable. The Old Dominion University E. V. Williams Center for Real Estate and Economic Development makes no representation or warranty as to its accuracy BOLD indicates change/addition from last year. 5

13 OFFICE SUBMARKETS 212 OFFICE Southside 1 Airport/Northampton 2 Chesapeake/Greenbrier 3 Downtown Norfolk 4 Central Norfolk 5 Hilltop/Oceanfront 6 Corporate Landing 7 Kempsville 8 Little Neck 9 Lynnhaven 1 Military Circle 11 Newtown/Witchduck 12 Northern Suffolk 13 Pembroke 14 Portsmouth Peninsula 15 Downtown Hampton 16 Hampton Roads Center 17 Coliseum Central 18 Downtown Newport News 19 Newmarket 2 Oyster Point 21 Suburban Newport News 22 Williamsburg/ James City Co./ York County 51