U.S. Offi ce Trends Report. 4th Quarter 2012

U.S. Offi ce Trends Report 4th Quarter 2012

Contents U.S. Office Sector Analysis...3-4 Investment Sales...5 Net Absorption by Metro...6-7 Vacancy Rates by Metro...8-9 Asking Rents by Metro...10-11 Inventory by Metro...12-13 Methodology...14 Kevin Thorpe Chief Economist 2101 L Street, NW, Ste. 700 Washington, DC 20037 Kevin.Thorpe@cassidyturley.com Jennifer Edwards Project Manager 2101 L Street, NW, Ste. 700 Washington, DC 20037 Jennifer.Edwards@cassidyturley.com Elena Bondarenko Economist 2101 L Street, NW, Ste. 700 Washington, DC 20037 Elena.Bondarenko@cassidyturley.com 2 Cassidy Turley

U.S. Offi ce Sector Analysis Office Sector Summary Despite the impending fi scal cliff, demand for offi ce space surged in the last quarter of 2012. Net absorption registered 20 million square feet (msf) in the fourth quarter -- its highest level since the third quarter of 2007. Of the 80 metros tracked, 66 (82%) reported positive absorption. In total, 48 msf was absorbed in 2012, compared to the 51.9 msf absorbed the previous year. The national vacancy rate ended the fourth quarter at 15.4% - marking a ninth consecutive quarter of declining vacancy. Offi ce vacancy is currently 170 basis points below its recessionary peak of 17.1%. Offi ce rents rose 1% in 2012 to $21.69. Net demand for offi ce space in the fourth quarter was particularly keen in Phoenix (with 1.3 msf absorbed), Seattle (1.1 msf), Long Island (914,000 sf), Sacramento (830,000 sf), Dallas (777,000 sf), Boston (771,000 sf), San Diego (730,000 sf) and Los Angeles (661,000 sf). Rent growth continued to be driven by a handful of West Coast tech-fueled markets and New York City. In the fourth quarter, rents in San Francisco and San Jose-Silicon Valley increased 14.5% and 10.2%, respectively, year over year. New York City also reported another strong gain of 10.4%. Market Indicators 4th Quarter 2012 Net Absorption 20.0M Vacancy Asking Rents $21.69 Under Construction 2012 Q4 15.4% 41.8M 12-month Forecast The pace of investment sales, which hit a soft patch in the summer, began to pick up towards the end of the year. According to Real Capital Analytics (RCA), investment sales totaled $6.9 billion in November of 2012, the highest monthly volume for the year. Average cap rates inched downward -- from 7.6% in October to 7.4% in November. Sales in Central Business Districts (CBDs) were up an incredible 233% from a year ago, and suburban properties posted a healthy 33% gain. Activity in December was tracking to be signifi cantly higher than in November, potentially doubling November s volume, according to RCA. Some of the jump in sales is undoubtedly related to the strategy of getting deals done prior to potential tax hikes. The debt markets also provided a healthy dose of liquidity. Total CMBS issuance in the fourth quarter registered $17.5 billion the highest quarterly volume since the end of 2007. Outlook Despite the brinksmanship of Congress regarding sequestration, the fi scal cliff and taxes, the U.S. economy was surprisingly resilient in the second half of 2012. Real GDP grew by a healthy 3.1% in the third quarter, and early fourth quarter data is tracking close to refl ect a 2% growth rate not terrible, all things considered. As the calendar fl ipped over to 2013, most economic indicators are lining up to suggest another year of at least modest growth. Business profi ts remain at record levels three times higher than the norm. Consumer spending patterns remain resilient. Even in the face of the fi scal cliff, retail sales were solid in the fourth quarter of 2012 up 3.7% compared to a year ago. Moreover, consumers are borrowing more, confi rming household balance sheets look substantially better. All of that is fi ne and good, but the most important development in the recovery to watch is from housing. Housing is critical to an economic recovery, typically contributing as much as 1-1.5% to U.S. GDP growth during recovery years. For most of the current recovery, housing has contributed virtually nothing to economic growth. But that is changing. In 2012, home sales rose to their highest level in fi ve years. Home prices have increased in 70% of the country. Residential construction could potentially double in 2013 from its level in 2012. Then there is the jobs market. Employment growth, while still below pre-recession levels, did remain positive throughout the year. U.S. Net Absorption vs. Vacancy Net Absorption, Selected Markets Q4 2012 24 17.5% 1.5 (msf) 20 16 12 8 4 0 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 17.0% 16.5% 16.0% 15.5% 15.0% Vacancy Rate (msf) 1.0 0.5 0.0-0.5-1.0 Phoenix Houston San Jose-Silicon Valley Sacramento Dallas Boston-Cambridge San Diego Los Angeles Denver Oakland-East Bay Tampa New York Charlotte Baltimore Suburban MD Kansas City Nashville Dayton San Francisco Indianapolis Louisville Minneapolis C New Jersey Raleigh Milwaukee Saint Louis San Mateo County Cincinnati Columbus N New Jersey Washington DC Suburban VA Absorption Vacancy Rate Source: Cassidy Turley Research Source: Cassidy Turley Research cassidyturley.com 3

U.S. Offi ce Sector Analysis Outlook cont. The U.S. economy added 1.9 million net new nonfarm payroll jobs in 2012 the highest number since 2006. And, signifi cant for offi ce markets, 32 % of those jobs fall into the category of offi ce-using. The U.S. economy has now produced an average of 150,000 jobs per month for 27 straight months. At the current trajectory, the U.S. will reach its peak level of employment by 2015. Fiscal policy presents the biggest wildcard in our outlook. The deal lawmakers signed on New Year s Day which increased taxes on the wealthy and delayed sequestration -- reduced the impact of the fi scal cliff by roughly 60%. This deal will raise around $730 billion of revenue over 10 years, creating a 1% drag on growth for 2013 due to reduced consumer spending. That is far better than the 4% drag had policymakers not reached a compromise. But in many respects, they merely delayed key policy decisions for another two months -- and didn t solve the underlying fi scal problems. Until they deliver on a plan that puts the U.S. on a long-term path to fi scal sustainability, economic growth will be suppressed, as will the recovery for the offi ce sector. Given the ongoing political uncertainty and the specter of the debt ceiling drama that is sure to materialize, the U.S. economy will start 2013 on a slow pace. Real GDP will hover below 2% in the fi rst half of the year, and business growth will remain far below potential. But assuming lawmakers can strike a deal, or at least provide a framework by mid-year, the U.S. economy will accelerate in the second half, with real GDP averaging closer to a 3% growth rate. If the recovery follows this script, then the U.S. economy will expand by slightly better than 2% for all of 2013, suffi cient to generate around 2 million net new jobs and 40 to 50 msf of net new demand for offi ce space. In short, 2013 will likely be a redux of 2012, but with the improvement in housing, there is upside for slightly stronger growth. Trend to watch: Businesses are getting more space-efficient. In the wake of the recession, many businesses have been looking at their fl oor plate and determining that they can function with 20-30% less space. That, in combination with open fl oor plans and the benching system has resulted in subpar absorption numbers relative to past recovery cycles. According to a survey conducted by CoreNet Global, the amount of offi ce space per worker has declined from 225 sf prior to the recession to 176 sf in 2012. It is estimated that it could decrease to as low as 151 sf by 2017. Asking Rents Select Markets, 4th Quarter 2012 Rents Yr/Yr % Chg. New York, NY $59.43 10.4% Washington DC $49.93 1.2% San Francisco, CA $43.70 14.5% San Mateo County, CA $40.08 5.7% Suburban VA $31.48 2.0% Boston-Cambridge, MA $29.90-3.8% Los Angeles, CA $29.38-0.4% San Jose-Silicon Valley, CA $28.93 10.2% San Diego, CA $26.76 0.5% Suburban MD $26.18-1.9% Minneapolis, MN $25.13 2.2% Houston, TX $24.93 6.9% Northern New Jersey $24.58-0.6% Central New Jersey $23.37-0.6% Baltimore, MD $22.18 1.1% Denver, CO $21.29 5.0% Phoenix, AZ $20.86-2.0% Oakland-East Bay, CA $20.61 3.5% Charlotte, NC $20.57 2.6% Dallas, TX $20.47 5.6% Tampa, FL $19.57-3.6% Sacramento, CA $19.56-2.4% Raleigh, NC $19.41-2.2% Nashville, TN $19.39-2.1% Saint Louis, MO $18.78-1.1% Atlanta, GA $18.74-0.4% Columbus, OH $18.55 8.5% Cincinnati, OH $18.22-1.3% Indianapolis, IN $18.05-0.3% Kansas City, MO $17.94-0.2% Milwaukee, WI $17.76-2.5% Louisville, KY $16.31-3.9% Dayton, OH $14.14-2.2% Source: Cassidy Turley Research 2013 Should be no worse Getting more space efficient U.S. Office space per worker, average square feet 3% 2% 1% 1.9% 2.4% 1.8% Consensus Forecast 2.0% 2.1% 230 220 210 200 225 0% -1% 2007 2008 2009 2010 2011 2012 2013 190 180 170 176-2% -3% -3.1% 160 150 151 2010 2011 2012 2013 2014 2015 2016 2017-4% Office space per worker, sf Source: Cassidy Turley Research, Moody s Source: NAIOP, CorNet Global 4 Cassidy Turley

Investment Sales U.S. Office Sales Volume Office Sale Volume Select Markets, Jan - Nov 2012 Source: Real Capital Analytics, Cassidy Turley Research $ Volume (Millions) Avg PSF Manhattan, NY $10,295 $499 San Francisco, CA $4,430 $449 DC Metro $4,243 $331 Los Angeles, CA $4,163 $258 Seattle, WA $3,742 $333 Houston, TX $2,611 $193 Chicago, IL $2,540 $142 Boston, MA $2,227 $239 Dallas, TX $1,825 $135 Denver, CO $1,603 $179 San Jose, CA $1,427 $247 Atlanta, GA $1,335 $123 Austin, TX $1,302 $175 Orange County, CA $998 $210 San Diego, CA $970 $264 Minneapolis, MN $966 $125 Charlotte, NC $909 $168 Phoenix, AZ $867 $135 Northern NJ $787 $131 East Bay, CA $775 $175 NYC Boroughs $738 $266 Miami, FL $640 $142 Philadelphia, PA $506 $132 Indianapolis, IN $453 $155 Nashville, TN $372 $173 Orlando, FL $349 $149 Stamford, CT $334 $205 Baltimore, MD $327 $82 Portland, OR $327 $144 Detroit, MI $296 $51 Tampa, FL $292 $154 Raleigh/Durham, NC $282 $122 Broward County, FL $259 $131 Pittsburgh, PA $251 $106 Inland Empire, VA $250 $110 St Louis, MO $239 $68 Las Vegas, NV $238 $100 Hartford, CT $210 $96 Columbus, OH $202 $146 Milwaukee, WI $178 $184 Cincinnati, OH $167 $73 Salt Lake City, UT $142 $151 Kansas City, MO $137 $57 Memphis, TN $132 $69 Sacramento, CA $86 $156 Billions Source: Real Capital Analytics U.S. Office Cap Rates 10% 9% 8% 7% 6% 5% 4% Nov-07 Mar-08 Jul-08 Nov-08 Mar-09 Jul-09 Nov-09 Mar-10 Jul-10 Nov-10 Mar-11 Jul-11 Nov-11 Mar-12 Jul-12 Nov-12 Source: Real Capital Analytics CBD Suburban U.S. Office Acquisitions by Buyer Type $240 $200 Billions $14 $12 $10 $8 $6 $4 $2 $0 Nov-07 Mar-08 Jul-08 Nov-08 Mar-09 Jul-09 Nov-09 Mar-10 Jul-10 Nov-10 Mar-11 Jul-11 Nov-11 Mar-12 Jul-12 Nov-12 $160 $120 $80 $40 $0 01 02 03 04 05 06 07 08 09 10 11 *12 Cross-Border Inst'l/Eq Fund Listed/REITs Private User/other *Q1 Q3 2012 Source: Real Capital Analytics cassidyturley.com 5

Net Absorption 2009 2010 2011 2011 4Q 2012 1Q 2012 2Q 2012 3Qr 2012 4Qp United States -68,338,000 23,525,000 51,910,000 13,676,000 7,196,000 13,813,000 7,178,000 20,015,000 Northeast -21,602,000 6,904,000 7,122,000-207,000 461,000 226,000 8,000 2,885,000 Midwest -10,072,000-3,439,000 2,800,000 2,365,000 636,000 569,000 1,526,000 2,609,000 South -13,652,000 11,705,000 20,121,000 6,652,000 1,725,000 7,460,000 3,734,000 6,050,000 West -23,011,000 8,355,000 21,867,000 4,866,000 4,374,000 5,558,000 1,910,000 8,471,000 Albuquerque, NM -396,000 81,000 58,000 36,000-5,000 48,000-69,000 140,000 Anaheim-Santa Ana, CA -3,949,000-410,000 242,000 219,000 155,000 98,000 260,000 131,000 Atlanta-Sandy Springs-Marietta, GA -3,007,000-260,000 331,000 428,000 274,000 250,000 1,315,000-537,000 Austin-Round Rock, TX -131,000 891,000 2,155,000 660,000 438,000 297,000-81,000 754,000 Baltimore, MD 62,000 830,000 778,000 110,000 12,000 450,000 84,000 384,000 Birmingham-Hoover, AL -617,000-49,000 377,000 90,000-6,000 69,000 74,000 119,000 Boston-Cambridge, MA -3,935,000 643,000 622,000 63,000 252,000 147,000-478,000 771,000 Buffalo-Niagara Falls, NY -130,000-93,000 322,000-133,000 102,000 26,000-6,000 73,000 Charleston-North Charleston, SC -275,000 138,000 285,000 90,000-13,000-50,000 131,000 186,000 Charlotte-Gastonia-Concord, NC-SC -366,000 440,000 695,000 340,000 175,000 190,000 229,000 404,000 Chattanooga, TN-GA -33,000-54,000 96,000 5,000 59,000 3,000 11,000-20,000 Chicago-Joliet-Naperville, IL-IN-WI -3,223,000-422,000-517,000 859,000 163,000 738,000 488,000 940,000 Cincinnati-Middletown, OH-KY-IN -152,000-350,000 263,000 250,000 188,000-58,000-31,000 22,000 Cleveland-Elyria-Mentor, OH -438,000-549,000-175,000 170,000 138,000-546,000-27,000 541,000 Colorado Springs, CO -244,000 685,000 575,000-17,000 152,000 105,000-38,000 25,000 Columbia, SC -75,000-131,000 308,000 172,000-137,000-43,000-217,000 24,000 Columbus, OH -641,000-552,000 555,000 94,000 110,000-230,000 246,000-35,000 Dallas, TX 601,000 894,000 2,738,000 784,000 17,000 148,000 500,000 778,000 Dayton, OH -817,000-58,000 83,000 127,000 N/A 298,000 N/A 249,000 Denver-Aurora, CO -335,000 2,284,000 1,532,000 473,000 484,000 806,000-183,000 535,000 Detroit-Warren-Livonia, MI -1,534,000-1,035,000 1,185,000 376,000-232,000 58,000 103,000 107,000 Fairfield, CT -2,305,000-661,000 720,000-111,000 272,000-180,000-72,000-276,000 Ft. Lauderdale, FL -947,000 31,000 136,000 127,000 186,000 8,000 15,000-14,000 Greensboro-Winston-Salem, NC 84,000 22,000 208,000 108,000 143,000 1,000 89,000 64,000 Greenville, SC -367,000 98,000 199,000 21,000 79,000 98,000 136,000 10,000 Hartford-West Hartford-East Hartford, CT -412,000-61,000-147,000-9,000-243,000-42,000 164,000 74,000 Honolulu, HI 261,000 157,000 107,000-3,000 10,000 114,000 55,000 18,000 Houston, TX -508,000 725,000 2,646,000 1,347,000 766,000 1,556,000 1,373,000 969,000 Indianapolis, IN -652,000-376,000-188,000 94,000 40,000 145,000 65,000 204,000 Jacksonville, FL -585,000 22,000 630,000 176,000-43,000 104,000 134,000-106,000 Kansas City, MO-KS -357,000-573,000 590,000 190,000-25,000 29,000 104,000 306,000 Knoxville, TN -204,000 286,000 153,000 127,000 154,000 27,000-23,000-1,000 Las Vegas-Paradise, NV -941,000-721,000 994,000-130,000 240,000 110,000 226,000 348,000 Lexington-Fayette,KY 15,000-48,000 27,000 95,000-146,000 2,000 92,000 170,000 Little Rock-N. Little Rock, AR -142,000 36,000 22,000-33,000 73,000 49,000-154,000 19,000 Los Angeles-Long Beach-Glendale, CA -2,439,000 1,849,000 105,000 211,000 362,000-22,000 247,000 661,000 Louisville, KY-IN -364,000 238,000 462,000 104,000 296,000 253,000-246,000 166,000 Madison, WI 44,000-226,000-46,000 36,000 109,000 19,000 42,000 62,000 Memphis, TN-MS-AR -289,000-12,000 215,000 94,000-11,000 72,000-87,000 98,000 Miami-Dade, FL -796,000 754,000 1,018,000 521,000 301,000 633,000 318,000 269,000 Milwaukee-Waukesha-West Allis, WI -597,000-262,000 290,000 111,000-29,000 195,000 64,000 95,000 Minneapolis-St. Paul-Bloomington, MN-WI -1,799,000 741,000 1,017,000 192,000 99,000-88,000 234,000 158,000 Nashville-Davidson-Murfreesboro, TN 80,000 925,000 744,000 211,000 102,000 329,000 330,000 292,000 New Haven-Milford, CT -1,488,000 244,000 240,000 197,000 22,000 38,000 11,000 29,000 6 Cassidy Turley

Net Absorption 2009 2010 2011 2011 4Q 2012 1Q 2012 2Q 2012 3Qr 2012 4Qp New Orleans-Metairie-Kenner, LA 312,000-558,000 253,000 18,000 83,000 115,000 2,000 26,000 New York, NY -10,871,000 9,564,000 4,217,000 621,000 165,000 413,000 1,181,000 485,000 Long Island, NY 733,000 87,000 797,000-62,000 74,000-375,000 601,000 914,000 Northern New Jersey -1,519,000-1,105,000-967,000-325,000-246,000-284,000-237,000-55,000 Central New Jersey -570,000-372,000-207,000-152,000 14,000 192,000-623,000 122,000 Oakland-East Bay, CA -2,984,000 235,000 1,147,000 5,000-234,000 533,000 531,000 534,000 Oklahoma City, OK 126,000 1,000 413,000-8,000 89,000 2,262,000 98,000 274,000 Omaha, NE-IA -154,000 225,000 144,000-37,000 29,000-19,000 167,000-131,000 Orlando, FL -1,242,000 311,000 1,232,000 333,000 296,000 51,000-208,000 276,000 West Palm Beach-Boca Raton, FL -810,000 137,000 841,000-95,000 13,000 10,000 116,000 344,000 Philadelphia-Camden-Wilmington, PA-NJ -1,160,000-562,000 1,157,000-210,000 133,000 512,000-525,000 683,000 Phoenix-Mesa-Scottsdale, AZ -610,000-52,000 653,000 93,000 91,000 178,000 257,000 1,257,000 Pittsburgh, PA 322,000 221,000 649,000 226,000 224,000-350,000 308,000 285,000 Portland-South Portland-Biddeford, ME 8,000-364,000-238,000-110,000 27,000 85,000-286,000 54,000 Portland-Vancouver-Beaverton, OR-WA -1,158,000-173,000 905,000 382,000 89,000 105,000 265,000 315,000 Raleigh-Durham, NC -538,000 222,000 354,000 69,000-30,000 79,000 187,000 97,000 Rochester, NY -87,000-49,000 392,000-102,000-229,000-12,000 13,000-2,000 Sacramento-Arden-Arcade-Roseville, CA 138,000-714,000 71,000 13,000 67,000 22,000 549,000 830,000 Saint Louis, MO-IL -299,000 3,000-351,000-95,000 58,000 41,000 30,000 80,000 Salt Lake City, UT -559,000 781,000 1,122,000 267,000 72,000 17,000-313,000 629,000 San Antonio, TX 303,000 199,000 346,000 80,000 281,000 185,000 38,000 582,000 San Diego-Carlsbad-San Marcos, CA -476,000 607,000 686,000 425,000-26,000 651,000-107,000 730,000 San Francisco, CA -1,713,000 1,028,000 2,945,000 895,000 1,056,000 608,000-356,000 217,000 San Jose-Silicon Valley, CA -5,640,000 1,285,000 5,393,000 1,183,000 1,613,000 657,000 735,000 908,000 San Mateo County, CA 342,000 273,000 1,564,000 103,000-341,000 244,000-361,000 60,000 Seattle-Tacoma-Bellevue, WA -1,797,000 1,120,000 3,808,000 480,000 475,000 1,170,000 346,000 1,093,000 Suburban MD -686,000 107,000 868,000 553,000-54,000-18,000-56,000 381,000 Suburban VA -1,713,000 1,720,000-120,000-293,000-1,254,000-70,000-342,000-457,000 Syracuse, NY -120,000 22,000-109,000-15,000-80,000-83,000-2,000 10,000 Tampa-St.Petersburg-Clearwater, FL -1,582,000-65,000 540,000 360,000-190,000 44,000-299,000 516,000 Tucson, AZ -354,000 13,000 175,000 231,000 3,000-69,000-60,000 61,000 Tulsa, OK -73,000-17,000 373,000-41,000 22,000 153,000 164,000 43,000 Ventura County, CA -157,000 26,000-215,000 3,000 109,000 180,000-72,000-21,000 Washington DC 116,000 3,873,000 799,000 99,000-248,000 203,000 12,000-61,000 Wichita, KS 547,000-4,000-50,000 0-12,000-12,000 41,000 13,000 Westchester, NY -69,000-608,000-328,000-85,000-26,000 138,000-40,000-282,000 Methodology and data sources explained on page 14 p = preliminary r = revision cassidyturley.com 7

Offi ce Vacancy Rates 2009 2010 2011 2011 4Q 2012 1Q 2012 2Q 2012 3Qr 2012 4Qp (Quarterly Average) United States 16.2% 17.1% 16.5% 16.1% 16.0% 15.8% 15.7% 15.4% Northeast 14.7% 15.4% 15.4% 15.4% 15.5% 15.6% 15.6% 15.5% Midwest 18.0% 19.4% 19.4% 19.0% 19.0% 19.1% 18.8% 18.5% South 15.8% 16.7% 15.8% 15.2% 15.1% 14.8% 14.6% 14.3% West 16.6% 17.3% 16.4% 16.0% 15.8% 15.6% 15.5% 15.0% Albuquerque, NM 13.5% 14.4% 13.5% 14.0% 14.3% 14.1% 14.6% 13.6% Anaheim-Santa Ana, CA 16.9% 18.6% 18.2% 18.1% 17.9% 17.7% 17.4% 17.3% Atlanta-Sandy Springs-Marietta, GA 19.3% 21.3% 21.4% 21.3% 21.0% 20.6% 18.8% 19.2% Austin-Round Rock, TX 18.9% 18.1% 14.9% 12.3% 11.2% 10.7% 11.1% 9.3% Baltimore, MD 18.8% 19.7% 19.3% 19.0% 19.5% 18.5% 18.5% 18.3% Birmingham-Hoover, AL 10.6% 12.4% 11.2% 10.7% 10.8% 10.4% 10.0% 9.5% Boston-Cambridge, MA 12.5% 13.6% 14.4% 14.5% 14.4% 14.1% 13.6% 11.9% Buffalo-Niagara Falls, NY 12.6% 13.5% 12.1% 11.7% 11.2% 11.0% 11.0% 10.7% Charleston-North Charleston, SC 16.0% 14.6% 11.0% 10.6% 10.8% 11.4% 9.9% 9.2% Charlotte-Gastonia-Concord, NC-SC 16.0% 19.9% 19.6% 18.7% 18.3% 17.9% 17.4% 17.4% Chattanooga, TN-GA 15.3% 17.9% 14.9% 14.9% 13.7% 13.6% 13.3% 13.8% Chicago-Joliet-Naperville, IL-IN-WI 17.0% 17.8% 18.4% 18.2% 18.1% 17.8% 17.7% 17.4% Cincinnati-Middletown, OH-KY-IN 19.5% 22.9% 23.9% 23.7% 23.4% 24.4% 24.4% 24.1% Cleveland-Elyria-Mentor, OH 17.7% 19.0% 20.5% 20.3% 20.1% 21.7% 21.7% 21.8% Colorado Springs, CO 18.9% 16.6% 10.7% 10.6% 9.5% 8.8% 9.4% 9.2% Columbia, SC 14.5% 16.3% 14.7% 13.2% 14.4% 14.8% 16.8% 16.7% Columbus, OH 14.7% 17.5% 17.1% 16.0% 15.6% 16.4% 15.5% 15.5% Dallas, TX 21.4% 22.9% 22.1% 21.6% 21.4% 21.3% 20.8% 20.5% Dayton, OH 24.3% 28.0% 28.4% 27.8% 27.8% 28.2% 28.2% 27.4% Denver-Aurora, CO 14.6% 14.3% 13.7% 13.4% 13.2% 12.7% 12.9% 12.4% Detroit-Warren-Livonia, MI 24.1% 25.1% 24.5% 23.7% 23.9% 23.9% 23.8% 23.4% Fairfield, CT 19.1% 21.3% 20.5% 20.3% 19.8% 20.2% 20.3% 20.8% Ft. Lauderdale, FL 16.6% 18.2% 18.1% 17.9% 17.2% 17.2% 17.1% 17.1% Greensboro-Winston-Salem, NC 18.4% 18.8% 18.3% 17.8% 17.0% 16.9% 16.5% 16.1% Greenville, SC 18.2% 19.4% 18.1% 17.4% 16.7% 16.3% 14.8% 14.7% Hartford-West Hartford-East Hartford, CT 19.3% 21.7% 22.9% 23.1% 24.1% 24.3% 23.7% 23.5% Honolulu, HI 7.3% 7.1% 6.8% 6.7% 6.7% 6.2% 6.0% 5.9% Houston, TX 15.3% 15.9% 15.5% 15.1% 14.8% 14.1% 12.2% 11.8% Indianapolis, IN 19.9% 21.0% 20.6% 20.3% 20.2% 19.9% 20.2% 19.7% Jacksonville, FL 19.0% 19.8% 17.3% 16.7% 17.1% 16.6% 16.0% 16.7% Kansas City, MO-KS 19.2% 20.7% 21.7% 21.3% 21.4% 21.4% 21.0% 20.2% Knoxville, TN 15.5% 16.6% 17.1% 15.4% 13.3% 12.8% 13.1% 13.1% Las Vegas-Paradise, NV 21.4% 23.9% 21.8% 21.7% 21.8% 21.4% 20.5% 18.7% Lexington-Fayette,KY 16.5% 16.9% 18.6% 17.2% 20.6% 20.5% 18.4% 17.1% Little Rock-N. Little Rock, AR 11.1% 12.1% 11.5% 11.4% 10.9% 10.5% 12.1% 12.0% Los Angeles-Long Beach-Glendale, CA 15.9% 18.3% 18.7% 18.7% 18.4% 18.4% 18.2% 17.6% Louisville, KY-IN 13.8% 15.0% 15.6% 15.2% 14.1% 13.5% 15.3% 16.1% Madison, WI 8.7% 9.4% 10.2% 10.2% 9.7% 9.9% 9.7% 9.5% Memphis, TN-MS-AR 18.2% 19.0% 18.8% 18.2% 18.2% 17.9% 18.2% 17.7% Miami-Dade, FL 13.4% 14.3% 14.2% 13.5% 12.8% 11.8% 11.3% 10.7% Milwaukee-Waukesha-West Allis, WI 19.4% 20.9% 20.9% 20.5% 20.9% 20.3% 17.6% 17.4% Minneapolis-St. Paul-Bloomington, MN-WI 18.9% 19.3% 17.6% 17.5% 17.4% 17.7% 17.5% 17.2% Nashville-Davidson-Murfreesboro, TN 16.0% 15.7% 13.4% 12.6% 12.5% 11.8% 11.5% 10.6% 8 Cassidy Turley

Offi ce Vacancy Rates 2009 2010 2011 2011 4Q 2012 1Q 2012 2Q 2012 3Qr 2012 4Qp (Quarterly Average) New Haven-Milford, CT 16.3% 16.6% 16.1% 16.3% 16.1% 15.8% 15.8% 15.5% New Orleans-Metairie-Kenner, LA 8.5% 9.1% 10.1% 10.0% 9.8% 9.5% 9.5% 9.4% New York, NY 13.5% 12.0% 11.5% 10.9% 10.6% 10.5% 10.3% 10.2% Long Island, NY 16.4% 16.7% 16.2% 15.9% 15.8% 16.3% 15.5% 15.2% Northern New Jersey 13.1% 13.9% 14.5% 14.9% 15.0% 15.2% 15.3% 15.4% Central New Jersey 16.1% 16.5% 16.6% 16.7% 16.6% 16.4% 17.0% 16.9% Oakland-East Bay, CA 18.1% 18.4% 18.1% 17.5% 17.8% 17.3% 16.9% 16.4% Oklahoma City, OK 15.7% 16.6% 16.2% 15.6% 15.5% 13.1% 12.8% 11.4% Omaha, NE-IA 14.8% 15.6% 14.4% 14.7% 14.4% 14.5% 15.0% 15.7% Orlando, FL 15.3% 16.5% 13.8% 12.4% 11.9% 12.1% 12.8% 11.9% West Palm Beach-Boca Raton, FL 17.6% 18.4% 14.9% 14.3% 14.3% 14.2% 14.1% 12.7% Philadelphia-Camden-Wilmington, PA-NJ 12.9% 13.9% 13.3% 13.2% 13.1% 12.9% 13.4% 13.1% Phoenix-Mesa-Scottsdale, AZ 25.8% 27.7% 28.1% 27.9% 28.2% 27.8% 27.5% 25.7% Pittsburgh, PA 15.4% 15.5% 14.8% 14.6% 14.4% 15.2% 14.5% 14.0% Portland-South Portland-Biddeford, ME 8.1% 9.2% 11.3% 11.8% 11.7% 11.2% 12.8% 12.5% Portland-Vancouver-Beaverton, OR-WA 13.3% 14.3% 12.9% 12.3% 12.1% 12.5% 11.9% 11.3% Raleigh-Durham, NC 18.7% 19.2% 17.6% 16.9% 17.0% 16.8% 16.5% 16.2% Rochester, NY 15.8% 16.1% 14.1% 13.8% 15.3% 15.3% 15.4% 15.7% Sacramento-Arden-Arcade-Roseville, CA 16.2% 17.0% 17.7% 17.6% 17.6% 17.6% 17.0% 16.2% Saint Louis, MO-IL 15.4% 16.2% 16.7% 16.2% 16.3% 16.2% 16.4% 16.4% Salt Lake City, UT 12.8% 14.4% 12.1% 10.8% 11.1% 11.3% 12.4% 11.0% San Antonio, TX 16.6% 17.2% 17.7% 17.3% 16.9% 16.6% 17.3% 16.7% San Diego-Carlsbad-San Marcos, CA 21.1% 19.9% 19.3% 18.6% 18.7% 18.3% 18.0% 16.8% San Francisco, CA 15.5% 15.6% 12.4% 11.0% 10.2% 9.6% 9.8% 10.3% San Jose-Silicon Valley, CA 18.0% 18.5% 15.4% 14.5% 13.5% 13.4% 13.2% 12.9% San Mateo County, CA 18.2% 16.3% 13.2% 12.8% 13.4% 12.7% 13.4% 13.7% Seattle-Tacoma-Bellevue, WA 14.2% 16.9% 15.1% 14.1% 13.5% 12.3% 12.2% 11.6% Suburban MD 14.5% 15.2% 15.4% 15.1% 15.5% 15.5% 15.6% 15.6% Suburban VA 14.0% 14.3% 14.1% 14.2% 15.4% 15.8% 16.0% 16.5% Syracuse, NY 13.0% 13.1% 14.2% 14.8% 15.4% 16.1% 16.1% 16.0% Tampa-St.Petersburg-Clearwater, FL 19.6% 21.0% 20.7% 20.1% 20.2% 20.2% 20.3% 19.6% Tucson, AZ 13.5% 14.2% 14.5% 13.8% 13.7% 14.8% 15.8% 14.9% Tulsa, OK 17.4% 17.6% 16.4% 16.3% 16.2% 15.3% 14.5% 14.3% Ventura County, CA 17.3% 17.5% 20.3% 20.8% 19.5% 17.3% 18.2% 19.0% Washington DC 10.0% 11.1% 10.4% 10.4% 10.4% 10.4% 10.3% 10.6% Wichita, KS 17.5% 17.7% 17.4% 17.5% 17.5% 17.6% 17.3% 17.3% Westchester, NY 16.4% 18.1% 18.9% 19.2% 19.3% 19.0% 19.3% 20.4% Methodology and data sources explained on page 14 p = preliminary r = revision cassidyturley.com 9

Asking Rents 2009 2010 2011 2011 4Q 2012 1Q 2012 2Q 2012 3Qr 2012 4Qp (Quarterly Average) United States $21.92 $21.37 $21.42 $21.49 $21.65 $21.72 $21.72 $21.69 Northeast $24.38 $23.30 $23.78 $24.04 $24.35 $24.34 $24.45 $24.31 Midwest $18.41 $18.27 $18.26 $18.26 $18.34 $18.36 $18.22 $18.18 South $20.96 $20.80 $20.60 $20.60 $20.64 $20.71 $20.71 $20.66 West $24.05 $23.02 $23.14 $23.21 $23.51 $23.65 $23.66 $23.74 Albuquerque, NM $16.42 $16.12 $15.58 $15.30 $15.31 $15.35 $15.28 $15.21 Anaheim-Santa Ana, CA $26.32 $23.68 $22.52 $22.23 $21.80 $21.57 $21.62 $21.67 Atlanta-Sandy Springs-Marietta, GA $19.58 $19.10 $18.77 $18.82 $18.93 $18.89 $18.22 $18.74 Austin-Round Rock, TX $25.24 $24.81 $24.36 $24.42 $24.54 $25.04 $25.35 $25.52 Baltimore, MD $22.97 $22.66 $22.19 $21.93 $21.98 $21.91 $21.44 $22.18 Birmingham-Hoover, AL $17.93 $17.67 $17.74 $17.95 $17.92 $18.02 $17.95 $17.79 Boston-Cambridge, MA $35.53 $29.97 $31.01 $31.09 $31.06 $30.44 $30.64 $29.90 Buffalo-Niagara Falls, NY $15.79 $16.38 $16.73 $16.73 $16.75 $16.72 $16.74 $16.61 Charleston-North Charleston, SC $19.10 $19.25 $19.01 $18.83 $18.65 $18.36 $18.30 $17.87 Charlotte-Gastonia-Concord, NC-SC $20.25 $19.69 $19.47 $20.05 $20.41 $20.41 $20.38 $20.57 Chattanooga, TN-GA $14.73 $14.22 $13.92 $14.55 $15.04 $15.07 $15.05 $14.93 Chicago-Joliet-Naperville, IL-IN-WI $25.18 $24.64 $24.43 $24.50 $25.11 $25.18 $25.17 $24.92 Cincinnati-Middletown, OH-KY-IN $18.00 $17.88 $18.15 $18.46 $18.47 $18.32 $18.25 $18.22 Cleveland-Elyria-Mentor, OH $17.80 $18.17 $17.83 $17.78 $18.01 $18.11 $18.10 $18.05 Colorado Springs, CO $16.47 $15.49 $16.04 $16.43 $16.31 $16.96 $16.81 $16.75 Columbia, SC $15.69 $15.88 $15.60 $15.44 $15.51 $15.55 $15.37 $15.62 Columbus, OH $18.51 $17.33 $17.11 $17.09 $18.35 $18.27 $18.43 $18.55 Dallas, TX $21.32 $19.78 $19.37 $19.38 $19.18 $20.13 $20.45 $20.47 Dayton, OH $14.96 $14.75 $14.56 $14.46 $14.46 $14.32 $14.32 $14.14 Denver-Aurora, CO $20.67 $19.92 $20.14 $20.27 $19.89 $19.89 $20.55 $21.29 Detroit-Warren-Livonia, MI $18.92 $18.68 $18.31 $18.28 $18.21 $17.96 $17.81 $17.67 Fairfield, CT $31.58 $29.84 $30.42 $31.48 $34.14 $33.79 $34.31 $33.76 Ft. Lauderdale, FL $25.33 $24.88 $24.49 $24.22 $24.05 $24.14 $23.72 $23.68 Greensboro-Winston-Salem, NC $15.39 $15.31 $15.44 $15.38 $15.35 $15.33 $15.29 $15.25 Greenville, SC $15.97 $16.07 $15.76 $15.64 $15.59 $15.82 $15.44 $15.61 Hartford-West Hartford-East Hartford, CT $19.49 $19.09 $19.39 $19.32 $19.07 $19.01 $19.03 $18.97 Honolulu, HI $23.57 $27.19 $28.56 $28.18 $28.78 $27.67 $26.70 $26.76 Houston, TX $23.92 $23.15 $22.96 $23.33 $23.77 $24.52 $24.91 $24.93 Indianapolis, IN $17.59 $17.55 $18.08 $18.11 $18.09 $18.09 $18.03 $18.05 Jacksonville, FL $18.28 $17.69 $17.05 $16.99 $17.07 $17.10 $16.94 $16.94 Kansas City, MO-KS $18.79 $18.35 $18.10 $17.97 $17.88 $17.94 $17.89 $17.94 Knoxville, TN $15.73 $15.92 $15.85 $15.91 $15.88 $15.90 $15.74 $15.33 Las Vegas-Paradise, NV $24.30 $22.68 $21.59 $21.04 $20.88 $20.87 $20.72 $20.07 Lexington-Fayette,KY $16.37 $16.74 $15.89 $15.51 $15.52 $15.58 $15.62 $15.72 Little Rock-N. Little Rock, AR $14.59 $15.05 $14.98 $14.46 $15.05 $15.41 $15.32 $15.34 Los Angeles-Long Beach-Glendale, CA $32.55 $30.20 $29.56 $29.51 $28.89 $29.18 $29.01 $29.38 Louisville, KY-IN $15.84 $16.90 $17.00 $16.97 $16.61 $16.46 $16.44 $16.31 Madison, WI $16.15 $16.70 $17.36 $17.74 $17.25 $17.22 $16.86 $17.32 Memphis, TN-MS-AR $17.54 $18.95 $18.82 $18.82 $18.86 $18.84 $18.73 $18.73 Miami-Dade, FL $29.56 $28.55 $27.52 $27.37 $27.31 $27.05 $27.23 $27.04 Milwaukee-Waukesha-West Allis, WI $18.07 $18.38 $18.35 $18.21 $18.28 $18.22 $17.57 $17.76 Minneapolis-St. Paul-Bloomington, MN-WI $24.60 $24.60 $24.58 $24.60 $24.64 $25.56 $24.98 $25.13 Nashville-Davidson-Murfreesboro, TN $20.23 $20.17 $19.96 $19.80 $19.26 $19.12 $19.64 $19.39 10 Cassidy Turley

Asking Rents 2009 2010 2011 2011 4Q 2012 1Q 2012 2Q 2012 3Qr 2012 4Qp (Quarterly Average) New Haven-Milford, CT $20.50 $20.38 $20.01 $19.85 $20.11 $20.40 $20.51 $20.73 New Orleans-Metairie-Kenner, LA $15.22 $15.39 $14.96 $14.98 $14.97 $14.97 $15.03 $15.38 New York, NY $51.10 $47.66 $51.99 $53.84 $55.58 $57.02 $58.77 $59.43 Long Island, NY $26.44 $26.26 $25.97 $26.00 $26.11 $26.38 $26.34 $26.02 Northern New Jersey $26.38 $25.38 $25.02 $24.74 $24.68 $24.79 $24.86 $24.58 Central New Jersey $23.87 $23.20 $23.44 $23.50 $23.81 $23.43 $23.80 $23.37 Oakland-East Bay, CA $21.76 $20.83 $20.26 $19.92 $20.18 $20.41 $20.56 $20.61 Oklahoma City, OK $13.96 $13.67 $13.41 $13.17 $13.25 $13.14 $13.14 $13.11 Omaha, NE-IA $16.74 $17.01 $17.30 $17.10 $16.94 $16.94 $17.09 $16.28 Orlando, FL $21.31 $20.20 $19.69 $19.61 $19.71 $19.59 $19.42 $19.19 West Palm Beach-Boca Raton, FL $28.28 $27.73 $27.09 $26.96 $26.81 $26.99 $26.94 $26.68 Philadelphia-Camden-Wilmington, PA-NJ $23.44 $22.99 $23.05 $23.11 $23.18 $23.31 $23.28 $23.18 Phoenix-Mesa-Scottsdale, AZ $23.80 $22.71 $21.72 $21.29 $20.83 $20.76 $21.03 $20.86 Pittsburgh, PA $19.34 $19.49 $19.38 $19.49 $19.46 $19.32 $19.30 $19.51 Portland-South Portland-Biddeford, ME $14.53 $14.50 $14.36 $14.36 $14.40 $14.15 $13.27 $12.69 Portland-Vancouver-Beaverton, OR-WA $20.84 $20.61 $20.60 $20.52 $20.45 $20.52 $20.62 $20.76 Raleigh-Durham, NC $19.70 $19.60 $19.88 $19.84 $19.89 $19.63 $19.46 $19.41 Rochester, NY $14.81 $14.08 $13.96 $13.83 $13.88 $13.93 $13.83 $13.98 Sacramento-Arden-Arcade-Roseville, CA $22.89 $21.78 $20.49 $20.04 $19.80 $19.80 $19.68 $19.56 Saint Louis, MO-IL $19.77 $19.44 $19.22 $18.99 $18.88 $18.73 $18.88 $18.78 Salt Lake City, UT $18.08 $17.76 $17.55 $17.55 $17.59 $17.62 $19.16 $19.36 San Antonio, TX $18.98 $19.05 $19.43 $19.26 $19.53 $19.59 $19.65 $19.67 San Diego-Carlsbad-San Marcos, CA $30.09 $27.57 $26.94 $26.64 $26.64 $26.64 $26.76 $26.76 San Francisco, CA $35.75 $32.04 $35.75 $38.17 $44.53 $44.80 $43.40 $43.70 San Jose-Silicon Valley, CA $27.12 $25.19 $25.60 $26.25 $26.49 $27.78 $28.18 $28.93 San Mateo County, CA $33.00 $30.81 $36.42 $37.92 $39.12 $40.20 $40.80 $40.08 Seattle-Tacoma-Bellevue, WA $28.54 $27.24 $26.67 $26.65 $26.47 $26.75 $27.09 $27.45 Suburban MD $27.46 $26.61 $26.62 $26.68 $26.83 $26.38 $26.49 $26.18 Suburban VA $29.74 $29.56 $30.28 $30.86 $31.23 $31.58 $31.77 $31.48 Syracuse, NY $14.58 $14.18 $14.89 $15.48 $15.64 $15.52 $15.38 $15.34 Tampa-St.Petersburg-Clearwater, FL $20.61 $20.03 $19.85 $20.30 $20.16 $20.00 $19.90 $19.57 Tucson, AZ $20.92 $20.17 $19.67 $19.44 $19.15 $19.14 $18.89 $18.87 Tulsa, OK $14.63 $15.77 $15.77 $15.66 $15.69 $15.66 $15.77 $15.90 Ventura County, CA $24.69 $24.16 $23.67 $23.51 $23.68 $23.80 $23.73 $23.62 Washington DC $47.54 $48.70 $49.41 $49.36 $49.39 $49.69 $50.18 $49.93 Wichita, KS $12.11 $12.16 $11.86 $11.93 $11.91 $11.99 $11.62 $11.59 Westchester, NY $28.36 $26.04 $27.07 $27.74 $27.31 $26.88 $26.70 $26.63 Methodology and data sources explained on page 14 p = preliminary r = revision cassidyturley.com 11

Inventory Inventory Vacant Stock Inventory Change (2012) U/C (as of 2012 Q4) National Total 4,959,155,000 751,613,000 23,559,000 41,811,000 Albuquerque, NM 13,469,000 1,826,000 65,000 250,000 Anaheim-Santa Ana, CA 82,523,000 14,256,000 0 0 Atlanta-Sandy Springs-Marietta, GA 193,676,000 37,186,000 150,000 1,711,000 Austin-Round Rock, TX 40,709,000 3,766,000 190,000 163,000 Baltimore, MD 73,482,000 13,447,000 1,281,000 1,487,000 Birmingham-Hoover, AL 18,418,000 1,756,000 38,000 0 Boston-Cambridge, MA 148,912,000 17,721,000 0 3,234,000 Buffalo-Niagara Falls, NY 20,934,000 2,237,000 0 0 Charleston-North Charleston, SC 7,879,000 725,000 159,000 135,000 Charlotte-Gastonia-Concord, NC-SC 44,592,000 7,774,000 516,000 0 Chattanooga, TN-GA 4,852,000 668,000 0 0 Chicago-Joliet-Naperville, IL-IN-WI 244,368,000 42,410,000 274,000 812,000 Cincinnati-Middletown, OH-KY-IN 33,067,000 7,963,000 0 340,000 Cleveland-Elyria-Mentor, OH 35,937,000 7,822,000 790,000 514,000 Colorado Springs, CO 14,975,000 1,384,000 55,000 27,000 Columbia, SC 10,799,000 1,805,000 16,000 0 Columbus, OH 26,797,000 4,156,000 512,000 529,000 Dallas, TX 206,247,000 42,281,000 415,000 1,006,000 Dayton, OH 13,972,000 3,828,000 306,000 128,000 Denver-Aurora, CO 170,476,000 21,139,000 866,000 897,000 Detroit-Warren-Livonia, MI 75,811,000 17,754,000 55,000 44,000 Fairfield, CT 57,784,000 12,019,000 0 75,000 Ft. Lauderdale, FL 27,147,000 4,650,000 0 807,000 Greensboro-Winston-Salem, NC 17,891,000 2,879,000 0 0 Greenville, SC 8,969,000 1,317,000 94,000 175,000 Hartford-West Hartford-East Hartford, CT 24,691,000 5,791,000 68,000 37,000 Honolulu, HI 25,683,000 1,527,000 0 0 Houston, TX 218,480,000 25,781,000 753,000 4,019,000 Indianapolis, IN 31,729,000 6,251,000 0 0 Jacksonville, FL 25,039,000 4,170,000 110,000 0 Kansas City, MO-KS 48,818,000 9,877,000-150,000 605,000 Knoxville, TN 7,124,000 934,000 0 0 Las Vegas-Paradise, NV 26,574,000 4,959,000 355,000 344,000 Lexington-Fayette,KY 4,503,000 771,000 139,000 0 Little Rock-N. Little Rock, AR 10,542,000 1,262,000 57,000 0 Los Angeles-Long Beach-Glendale, CA 114,906,000 20,231,000 0 218,000 Louisville, KY-IN 21,549,000 3,469,000 15,000 250,000 Madison, WI 22,033,000 2,084,000 78,000 417,000 Memphis, TN-MS-AR 19,601,000 3,464,000 0 161,000 Miami-Dade, FL 43,390,000 4,642,000 337,000 278,000 Milwaukee-Waukesha-West Allis, WI 28,288,000 4,922,000 0 0 Minneapolis-St. Paul-Bloomington, MN-WI 69,232,000 11,908,000 77,000 25,000 Nashville-Davidson-Murfreesboro, TN 33,663,000 3,568,000 489,000 473,000 New Haven-Milford, CT 12,216,000 1,899,000 18,000 39,000 New Orleans-Metairie-Kenner, LA 36,096,000 3,396,000 0 0 New York, NY 460,969,000 47,019,000 0 7,477,000 Long Island, NY 71,470,000 10,864,000 768,000 55,000 Northern New Jersey 149,256,000 22,949,000 441,000 738,000 Central New Jersey 105,997,000 17,876,000 427,000 168,000 12 Cassidy Turley

Inventory Inventory Vacant Stock Inventory Change (2012) U/C (as of 2012 Q4) Oakland-East Bay, CA 109,899,000 18,023,000 101,000 60,000 Oklahoma City, OK 20,038,000 2,286,000 2,224,000 0 Omaha, NE-IA 18,314,000 2,874,000 291,000 1,172,000 Orlando, FL 33,070,000 3,943,000 286,000 88,000 West Palm Beach-Boca Raton, FL 24,217,000 3,082,000 116,000 30,000 Philadelphia-Camden-Wilmington, PA-NJ 113,085,000 14,805,000 724,000 666,000 Phoenix-Mesa-Scottsdale, AZ 68,339,000 17,563,000 92,000 69,000 Pittsburgh, PA 50,041,000 7,028,000 207,000 1,557,000 Portland-South Portland-Biddeford, ME 17,886,000 2,239,000 0 0 Portland-Vancouver-Beaverton, OR-WA 41,752,000 4,727,000 420,000 152,000 Raleigh-Durham, NC 36,226,000 5,870,000 74,000 301,000 Rochester, NY 15,736,000 2,469,000 77,000 134,000 Sacramento-Arden-Arcade-Roseville, CA 85,194,000 13,801,000 72,000 130,000 Saint Louis, MO-IL 48,905,000 8,020,000 361,000 0 Salt Lake City, UT 30,803,000 3,382,000 501,000 706,000 San Antonio, TX 29,958,000 5,011,000 1,122,000 217,000 San Diego-Carlsbad-San Marcos, CA 73,543,000 12,429,000 0 935,000 San Francisco, CA 83,339,000 8,584,000 71,000 286,000 San Jose-Silicon Valley, CA 201,495,000 25,911,000 2,557,000 525,000 San Mateo County, CA 50,606,000 6,933,000 0 0 Seattle-Tacoma-Bellevue, WA 85,412,000 9,911,000 1,136,000 725,000 Suburban MD 71,918,000 11,245,000 935,000 1,155,000 Suburban VA 160,289,000 26,448,000 1,391,000 2,712,000 Syracuse, NY 12,696,000 2,033,000 0 29,000 Tampa-St.Petersburg-Clearwater, FL 59,474,000 11,657,000 208,000 269,000 Tucson, AZ 6,243,000 930,000 15,000 20,000 Tulsa, OK 20,505,000 2,932,000 11,000 479,000 Ventura County, CA 8,428,000 1,600,000 58,000 18,000 Washington DC 122,156,000 12,899,000 717,000 1,724,000 Wichita, KS 13,917,000 2,408,000 25,000 15,000 Westchester, NY 40,136,000 8,188,000 0 0 Methodology and data sources explained on page 14 Under construction and inventory change fi gures are derived from Cassidy Turley s proprietary sample and taken directly from CoStar s database for certain markets. cassidyturley.com 13

Methodology Disclaimer This report and other research materials may be found on our website at www.cassidyturley. com. This is a research document of Cassidy Turley in Washington, DC. Questions related to information herein should be directed to the Research Department at 202-463- 2100. Information contained herein has been obtained from sources deemed reliable and no representation is made as to the accuracy thereof. Cassidy Turley is a leading commercial real estate services provider, with 455 million square feet managed on behalf of institutional, private and corporate clients and $22 billion in completed transactions for 2011. Methodology Cassidy Turley s quarterly estimates are derived from a variety of data sources, including its own proprietary sample of market activity, historical inventory data from Reis LLC, Bureau of Labor Statistics Employment data, CoStar and other third party data sources. The market statistics are calculated from a base building inventory made up of offi ce properties deemed to be competitive in the local offi ce markets. Generally, owner-occupied and federally-owned buildings are not included. Single-tenant buildings and privately-owned buildings in which the federal government leases space are included. Older buildings unfi t for occupancy or ones that require substantial renovation before tenancy are generally not included in the competitive inventory. The inventory is subject to revisions due to resampling. Vacant space is defi ned as space that is available immediately or three months (90 days) after the end of the quarter. Sublet space still occupied by the tenant is not counted as available space. The fi gures provided for the current quarter are preliminary, and all information contained in the report is subject to correction of errors and revisions based on additional data received. Explanation of Terms Total Inventory: The total amount of offi ce space (in buildings greater than 10,000 square feet) that can be rented by a third party. Total Space Available: The sums of new, relet, and sublet space that is unoccupied and being actively marketed. Vacancy Rate: The amount of unoccupied space (new, relet, and sublet) expressed as a percentage of total inventory. Absorption: The net change in occupied space between two points in time. (Total occupied space in the present quarter minus total occupied space from the previous quarter, quoted on a net, not gross, basis.) Asking Rents: Gross average asking rents. Regional Map West Midwest South Northeast 14 Cassidy Turley

Key Statistics More than 60 U.S. offi ces 65 international offi ces* More than 3,600 professionals More than 900 brokers 2011 transactions Gross transaction volume $22 billion Gross capital markets volume $10.3 billion 455 million sf managed portfolio More than 28,000 client locations served *Through GVA Partnership A Leader in Commercial Real Estate Services At Cassidy Turley, we are market leaders, industry leaders and community leaders. Nationwide, clients recognize us for the creative sophistication of our real estate advice as well as for the discipline and accuracy of our service delivery. We are a trusted partner and advocate, supporting our clients overall business performance. In markets across the country, we are respected as a leading provider of commercial real estate services as well as for our community engagement. Our thorough understanding of local business practices and market dynamics, combined with our customer focus and service commitment, give our clients a distinct edge in commercial real estate across the globe. Local Market Leaders, Nationwide Our professionals have deep ties to our communities and our industry, and a thorough understanding of local business leaders and practices, giving Cassidy Turley and our clients an edge. Our in-depth, local market knowledge provides a comprehensive understanding of market dynamics and enables us to effectively forecast market trends providing insight to clients and helping them make informed real estate decisions. Our leadership position is recognized in the communities we serve. We are often rated in local business journals as a Best Place to Work, and are honored for our many local philanthropic efforts. Industry Leadership Named to Leaders List of 2012 Global Outsourcing 100 Over 80% of real estate executives familiar with our brand ranked it Very Good or Excellent Wall Street Journal survey Ranked in the Top Five in Best Practices Index Commercial Property Executive Platinum ranking in Greenest Companies Index Commercial Property Executive Top 5 in Offi ce Sales over $25 Million Nationwide Real Estate Alert World-Class Expertise Many of our associates have honed their skills in their respective markets for years even decades gaining an understanding of industry best practices and serving as thought leaders. Cassidy Turley has served clients needs outside of the United States since 1985. In order to better serve our clients in Europe and Asia-Pacifi c, Cassidy Turley is proud to partner with GVA, the founder and majority shareholder of GVA Worldwide, which serves key markets in over 25 countries cassidyturley.com