U.S. Offi ce Trends Report. 1st Quarter 2013

U.S. Offi ce Trends Report 1st Quarter 2013

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 Research 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 Demand for offi ce space in the fi rst quarter of 2013 fl attened as businesses continue to push for space effi ciency. U.S. offi ce markets absorbed just 4.5 million square feet (msf) of offi ce space in the fi rst quarter of the year, a decrease from the 23 msf absorbed in the fourth quarter of 2012. The demand fi gures in the fi rst quarter were the weakest since the recovery began in 2010. Vacancy rose by 10 basis points (bps) in the fi rst quarter to 15.4% still 200 bps higher than pre-recession levels. Offi ce rents ended the quarter at an average of $21.64 per square foot (psf) - unchanged from the same period a year ago. Throughout this recovery there has been a clear fl ight-to-quality trend and that trend has continued so far into 2013. In the fi rst quarter, class A space accounted for approximately 70% of total net absorption. The fi rst quarter fi gures also amplify the growing disconnect between job creation and demand for offi ce space. The U.S. economy created 584,000 jobs in the fi rst quarter of 2013 of which 194,000 fall into the category of offi ce-using. In better times, this level of job creation would have been enough to generate 20-30 msf of absorption rather than the 4.6 msf that was observed. Throughout this recovery the offi ce sector has averaged 11 msf of absorption per quarter, 40% below pre-recession levels. Market Indicators 1st Quarter 2013 Net Absorption 4.5M Vacancy Asking Rents $21.64 Under Construction 2013 Q1 15.4% 49.7M 12-month Forecast The primary headwinds that continue to prevent more robust demand include shadow space, tenant downsizing and policy uncertainty. Nevertheless, there is subtle improvement going on behind the scenes. Shadow space offi ce space that has been leased but not utilized is slowly fi lling up and rents have generally held steady for fi ve straight quarters. Moreover, the amount of vacant sublease space is also eroding, down 65% from its recessionary peak. While most markets experienced subpar demand in the fi rst quarter of 2013, there were a few standouts. The top 10 performers in terms of net demand for offi ce space were Dallas (728,500 sf), Tampa (612,800 sf), Boston-Cambridge (610,000 sf), Denver (576,000 sf), Orange County (542,000 sf), Minneapolis (490,600 sf), Northern New Jersey (434,300 sf), Seattle (396,500 sf), Charlotte (327,700 sf) and Raleigh (325,100 sf). Among the four Census regions the South led the way accounting for 75% of the total net demand for offi ce space in the U.S. Several markets posted double-digit gains in rent growth from a year ago, with New York City (an increase of 10.9%), Salt Lake City (10.9%) and San Jose-Silicon Valley (10.3%) leading the way. It should be noted, however, that the bulk of the rest of the country generally experienced rent declines. In fact, when you strip these three markets out of the analysis, average rents in the remaining 77 markets declined by 0.7%. It is encouraging to note that the development pipeline remains lean. As the fi rst quarter came to a close there was just 49.7 msf of new offi ce product under construction, still 30% below the norm. That said, new development is clearly on an uptrend. In fact, development has been slowly increasing since hitting a low point in late 2010. Speculative development is still extremely rare, but the uptrend does suggest that developers are willing to bet that newly built, high-quality buildings will be able to lease up even under subpar growth conditions. In the fi rst two months of the year investment sales totaled $7.1 billion, according to Real Capital Analytics. Core product remains in high demand, but supply is limited, and cap rates have generally tracked downwards with 10-year Treasury bond yields. Many investors looking for higher yields have broadened their search to the suburbs and to secondary markets. Sales volume for suburban offi ce buildings increased 27.5% in February compared to a year ago, while volume for Central Business District (CBD) properties declined 19.5% over the same period. The Urban Land Institute s 2013 edition of Emerging Trends in Real Estate refers to this division as the Big Six (San Francisco, New York City, Boston, Washington, D.C., Los Angeles and Chicago) versus the Field. From 2009 to 2011, the Big Six generally dominated in terms of overall sales activity. Last year, investor demand clearly began spreading beyond the Big Six. In 2012 secondary markets such as Charlotte, Indianapolis, Nashville and Raleigh registered a 50% increase in sales volume over the year whereas both Boston and Washington, D.C. experienced a decline of 7% and 25%, respectively. U.S. Net Absorption vs. Vacancy Net Absorption, Selected Markets Q1 2013 24 17.0% 800 (msf) 20 16 12 8 4 0 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 16.5% 16.0% 15.5% 15.0% Vacancy Rate (thousands sf) 600 400 200 0-200 -400-600 -800 Dallas Tampa Boston-Cambridge Denver Orange County Minneapolis Northern NJ Charlotte Raleigh Suburban MD Suburban VA Washington DC Baltimore Indianapolis Kansas City Atlanta San Francisco Sacramento Nashville San Diego San Mateo County Milwaukee Cincinnati Phoenix Long Island Saint Louis Houston Central NJ Columbus San Jose-Silicon Valley Oakland-East Bay Los Angeles Absorption Vacancy Rate Source: Cassidy Turley Research Source: Cassidy Turley Research cassidyturley.com 3

U.S. Offi ce Sector Analysis The credit markets also appear to have reached an important infl ection point in the cycle, which bodes well for sales activity going forward. CMBS issuance totaled $22.9 billion in the fi rst quarter of 2013. That is double the loan volume generated at any other point in the current recovery. Other lending metrics, such as the Federal Reserve Senior Loan Offi ce Opinion Survey, show that the net percentage of banks reporting stronger demand for commercial real estate loans reached an all-time high in the fourth quarter of 2012. Given the clear signs that credit conditions are loosening, along with investors increased appetite to take on additional risk, investment sales are poised to accelerate in 2013. Outlook The U.S. economy is showing some signs of wanting to grow at a much faster pace but remains restrained by fi scal uncertainty. As of this writing (mid-april), equity markets were at all-time highs and home prices were moving up aggressively. Both create a wealth effect for consumers. Every $1 increase in home values boosts consumption by 10 cents. In other words, housing alone might boost GDP growth by 1% this year. Equity markets could add another 0.5% in household wealth growth. The indicators that gauge consumer spending also appear mostly encouraging. Retail sales were up 2.9% in the fi rst quarter of 2013 compared to a year ago. Vehicle sales are generally running at pace of over 15 million seasonally adjusted units, up 8% compared to 2012 levels. Thus far in 2013, the evidence suggests that consumers are willing to spend despite the government spending cuts along with a loss in disposable income due to tax increases this year. Space utilization is another trend worth watching. 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. Other studies suggest that although certain industries (e.g., law fi rms and tech fi rms) are dropping their space requirements by 20-30%, most other tenants are not altering their space requirements as dramatically. Fiscal policy remains the biggest wildcard in our outlook. The sequestration cuts - $85 billion in reduced federal government spending offi cially kicked in on March 1, 2013. Assuming policymakers do not reach a grand bargain on defi cit reduction by this summer, the sequester cuts will likely remain in place for calendar year 2013. If the full sequestration occurs, we estimate it will shave 0.6% off of GDP growth and 510,000 jobs will be lost this year. Although the White House recently released its budget proposal which aims to replace the sequester cuts with broad changes to tax and entitlement programs, given the current political tension in Washington, the odds of a grand bargain being reached in 2013 are now a disappointing 50-50. If the U.S. remains in the sequester scenario, the effects will be most noticeable in the second half of 2013 and will continue to weigh on growth in 2014. The Cypress banking crisis also has the eurozone back on our radar as another downside risk. If all goes according to script, under the grand bargain scenario, real GDP will grow by 2.5%, which will be enough growth to generate 2 million net new jobs. The offi ce sector will generate 50 msf of net growth this year and the vacancy rate will decline 30 basis points ending the year at 15.1%. Assuming lawmakers can work things out, and barring no unforeseen setbacks, the offi ce sector should continue to make slow but steady progress in 2013. Asking Rents Select Markets, 1st Quarter 2013 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 NJ $24.58-0.6% Central NJ $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 Fiscal Headwinds Discretionary Spending, $billions Clear Bright Spots Equity Markets & Housing $1,400 $1,350 $1,300 $1,250 $1,200 $1,150 $1,100 $1,050 $1,000 $950 $900 $1,077 $992 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 15500 14500 13500 12500 11500 10500 03 Jan 2011 17 Feb 2011 05 Apr 2011 20 May 2011 06 Jul 2011 19 Aug 2011 05 Oct 2011 18 Nov 2011 06 Jan 2012 23 Feb 2012 10 Apr 2012 24 May 2012 11 Jul 2012 24 Aug 2012 10 Oct 2012 27 Nov 2012 14 Jan 2013 01 Mar 2013 Share Price Index: World - Dow Jones Industrial Average, (Index, NSA) for United States $188 $184 $180 $176 $172 $168 $164 $160 No Sequestration Sequestration Median Sales Price of Existing Homes: Single-Family & Coo & Co-op, (Ths. $, SA) for United States Source: Congressional Budget Office; Cassidy Turley Research Source: S&P Dow Jones Indices LLC; National Association of Realtors 4 Cassidy Turley

Investment Sales U.S. Office Sales Volume Office Sale Volume Select Markets, Jan - Feb 2013 Source: Real Capital Analytics, Cassidy Turley Research $ Volume (Millions) Avg PSF DC Metro $639.7 $281 Atlanta, GA $579.9 $205 Los Angeles, CA $579.0 $118 Manhattan, NY $498.5 $441 Dallas, TX $386.0 $144 Seattle, WA $348.6 $293 Chicago, IL $348.0 $118 Houston, TX $341.7 $112 Northern NJ $300.4 $138 Minneapolis, MN $283.2 $75 San Francisco, CA $269.6 $388 Denver, CO $158.3 $229 Portland, OR $142.8 $298 Saint Louis, MO $114.9 $118 Orange County, CA $107.5 $251 Charlotte, NC $101.8 $97 Tampa, FL $95.4 $154 Boston, MA $87.4 $139 San Diego, CA $81.6 $207 Raleigh/Durham, NC $79.0 $243 Baltimore, MD $73.4 $96 San Jose, CA $70.0 $174 NYC Boroughs $62.7 $191 Philadelphia, PA $60.7 $103 Indianapolis, IN $59.4 N/A Pittsburgh, PA $52.5 $194 Detroit, MI $49.5 $175 Westchester, NY $42.8 $105 Salt Lake City, UT $41.1 N/A Phoenix, AZ $39.4 $114 Inland Empire, CA $37.9 $72 Jacksonville, FL $31.8 $110 East Bay, CA $30.0 $305 San Antonio, TX $27.7 N/A Cleveland, OH $27.1 $22 Memphis, TN $26.8 $117 Miami, FL $24.7 $100 Stamford, CT $21.6 $133 Kansas City, MO $21.0 $37 Orlando, FL $19.5 $126 Palm Beach, FL $17.3 $259 Nashville, TN $10.1 $160 Milwaukee, WI $6.9 N/A Sacramento, CA $6.2 $65 Billions Source: Real Capital Analytics U.S. Office Cap Rates 10% 9% 8% 7% 6% 5% 4% Feb-08 Jun-08 Oct-08 Feb-09 Jun-09 Oct-09 Feb-10 Jun-10 Oct-10 Feb-11 Jun-11 Oct-11 Feb-12 Jun-12 Oct-12 Feb-13 Source: Real Capital Analytics CBD Suburban U.S. Office Acquisitions by Buyer Type $240 $200 Billions $18 $16 $14 $12 $10 $8 $6 Avg. = $4.3B $4 $2 $0 Feb-08 Jun-08 Oct-08 Feb-09 Jun-09 Oct-09 Feb-10 Jun-10 Oct-10 Feb-11 Jun-11 Oct-11 Feb-12 Jun-12 Oct-12 Feb-13 $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 Source: Real Capital Analytics cassidyturley.com 5

Net Absorption 2010 2011 2012 2012 1Q 2012 2Q 2012 3Q 2012 4Qr 2013 1Qp United States 19,880,000 54,318,000 51,365,000 6,201,000 14,837,000 7,871,000 22,513,000 4,466,000 Northeast 6,978,000 7,017,000 3,988,000 438,000 284,000 87,000 3,179,000-394,000 Midwest -3,439,000 2,800,000 5,584,000 696,000 540,000 1,532,000 2,816,000 557,000 South 11,949,000 20,121,000 20,636,000 1,718,000 7,582,000 3,736,000 7,601,000 3,331,000 West 4,393,000 24,380,000 21,157,000 3,350,000 6,432,000 2,516,000 8,917,000 971,000 Albuquerque, NM 81,000 58,000 113,000-5,000 48,000-69,000 140,000 41,000 Anaheim-Santa Ana, CA -447,000 2,249,000 1,264,000-277,000 552,000 543,000 445,000 542,000 Atlanta-Sandy Springs-Marietta, GA -260,000 331,000 1,302,000 274,000 250,000 1,315,000-537,000 199,000 Austin-Round Rock, TX 891,000 2,155,000 1,408,000 438,000 297,000-81,000 754,000 94,000 Baltimore, MD 830,000 778,000 710,000 12,000 450,000 84,000 162,000 218,000 Birmingham-Hoover, AL -49,000 377,000 255,000-6,000 69,000 74,000 119,000 1,000 Boston-Cambridge, MA 643,000 622,000 691,000 252,000 147,000-478,000 771,000 610,000 Buffalo-Niagara Falls, NY -93,000 322,000 195,000 102,000 26,000-6,000 73,000 13,000 Charleston-North Charleston, SC 138,000 285,000 255,000-13,000-50,000 131,000 186,000-132,000 Charlotte-Gastonia-Concord, NC-SC 440,000 695,000 1,217,000 175,000 190,000 229,000 623,000 328,000 Chattanooga, TN-GA -54,000 96,000 53,000 59,000 3,000 11,000-20,000-79,000 Chicago-Joliet-Naperville, IL-IN-WI -422,000-517,000 2,328,000 163,000 738,000 488,000 940,000 89,000 Cincinnati-Middletown, OH-KY-IN -350,000 263,000 121,000 188,000-58,000-31,000 21,000 74,000 Cleveland-Elyria-Mentor, OH -549,000-175,000 107,000 138,000-546,000-27,000 541,000-307,000 Colorado Springs, CO 685,000 575,000 245,000 152,000 105,000-38,000 25,000 225,000 Columbia, SC -131,000 308,000-374,000-137,000-43,000-217,000 24,000-57,000 Columbus, OH -552,000 555,000 290,000 110,000-230,000 246,000 164,000-252,000 Dallas, TX 894,000 2,738,000 3,044,000 17,000 148,000 500,000 2,379,000 728,000 Dayton, OH -58,000 83,000 717,000 N/A 298,000 N/A 420,000 N/A Denver-Aurora, CO 2,284,000 1,532,000 1,643,000 484,000 806,000-183,000 535,000 576,000 Detroit-Warren-Livonia, MI -1,035,000 1,185,000 36,000-232,000 58,000 103,000 107,000 126,000 Fairfield, CT -661,000 720,000-256,000 272,000-180,000-72,000-276,000 42,000 Ft. Lauderdale, FL 31,000 136,000 195,000 186,000 8,000 15,000-14,000 10,000 Greensboro-Winston-Salem, NC 22,000 208,000 297,000 143,000 1,000 89,000 64,000-57,000 Greenville, SC 98,000 199,000 324,000 79,000 98,000 136,000 10,000-31,000 Hartford-West Hartford-East Hartford, CT -61,000-147,000-47,000-243,000-42,000 164,000 74,000-45,000 Honolulu, HI 157,000 107,000 197,000 10,000 114,000 55,000 18,000 79,000 Houston, TX 725,000 2,646,000 4,546,000 766,000 1,556,000 1,373,000 851,000-147,000 Indianapolis, IN -376,000-188,000 454,000 40,000 145,000 65,000 204,000 210,000 Jacksonville, FL 22,000 630,000 89,000-43,000 104,000 134,000-106,000-50,000 Kansas City, MO-KS -573,000 590,000 430,000-25,000 29,000 104,000 322,000 208,000 Knoxville, TN 286,000 153,000 157,000 154,000 27,000-23,000-1,000-30,000 Las Vegas-Paradise, NV -721,000 994,000 925,000 240,000 110,000 226,000 348,000-68,000 Lexington-Fayette,KY -48,000 27,000 119,000-146,000 2,000 92,000 170,000 15,000 Little Rock-N. Little Rock, AR 36,000 22,000-12,000 73,000 49,000-154,000 19,000-14,000 Los Angeles-Long Beach-Glendale, CA -2,162,000 542,000 860,000 393,000-266,000 228,000 505,000-594,000 Louisville, KY-IN 238,000 462,000 395,000 296,000 253,000-246,000 92,000-16,000 Madison, WI -226,000-46,000 231,000 109,000 19,000 42,000 62,000-21,000 Memphis, TN-MS-AR -12,000 215,000 72,000-11,000 72,000-87,000 98,000-88,000 Miami-Dade, FL 754,000 1,018,000 1,521,000 301,000 633,000 318,000 269,000 249,000 Milwaukee-Waukesha-West Allis, WI -262,000 290,000 86,000-29,000 195,000 64,000-144,000 86,000 Minneapolis-St. Paul-Bloomington, MN-WI 741,000 1,017,000 498,000 99,000-88,000 234,000 253,000 491,000 Nashville-Davidson-Murfreesboro, TN 925,000 744,000 1,102,000 95,000 451,000 332,000 225,000 146,000 New Haven-Milford, CT 244,000 240,000 100,000 22,000 38,000 11,000 29,000-79,000 6 Cassidy Turley

Net Absorption 2010 2011 2012 2012 1Q 2012 2Q 2012 3Q 2012 4Qr 2013 1Qp New Orleans-Metairie-Kenner, LA -558,000 253,000 227,000 83,000 115,000 2,000 26,000-124,000 New York, NY 9,564,000 4,217,000 2,602,000 165,000 413,000 1,181,000 843,000-986,000 Long Island, NY 87,000 797,000 1,215,000 74,000-375,000 601,000 914,000 56,000 Northern New Jersey -1,016,000-1,095,000-838,000-291,000-269,000-158,000-120,000 434,000 Central New Jersey -388,000-183,000-230,000 36,000 235,000-623,000 122,000-216,000 Oakland-East Bay, CA 322,000 1,112,000 1,430,000-278,000 550,000 526,000 632,000-499,000 Oklahoma City, OK 1,000 413,000 2,722,000 89,000 2,262,000 98,000 274,000 141,000 Omaha, NE-IA 225,000 144,000 45,000 29,000-19,000 167,000-131,000 38,000 Orlando, FL 311,000 1,232,000 414,000 296,000 51,000-208,000 276,000-5,000 West Palm Beach-Boca Raton, FL 137,000 841,000 483,000 13,000 10,000 116,000 344,000 18,000 Philadelphia-Camden-Wilmington, PA-NJ -562,000 1,157,000 803,000 133,000 512,000-525,000 683,000-48,000 Phoenix-Mesa-Scottsdale, AZ -52,000 653,000 1,726,000-670,000 709,000 552,000 1,135,000 72,000 Pittsburgh, PA 221,000 649,000 467,000 224,000-350,000 308,000 285,000-93,000 Portland-South Portland-Biddeford, ME -364,000-238,000-120,000 27,000 85,000-286,000 54,000 75,000 Portland-Vancouver-Beaverton, OR-WA -173,000 905,000 774,000 89,000 105,000 265,000 315,000-11,000 Raleigh-Durham, NC 466,000 354,000 437,000-30,000 79,000 187,000 201,000 325,000 Rochester, NY -49,000 392,000-231,000-229,000-12,000 13,000-2,000-59,000 Sacramento-Arden-Arcade-Roseville, CA -714,000 71,000 1,469,000 67,000 22,000 549,000 830,000 178,000 Saint Louis, MO-IL 3,000-351,000 212,000 118,000 12,000 37,000 45,000-53,000 Salt Lake City, UT 781,000 1,122,000 405,000 72,000 17,000-313,000 629,000 6,000 San Antonio, TX 199,000 346,000 1,085,000 281,000 185,000 38,000 582,000 207,000 San Diego-Carlsbad-San Marcos, CA 607,000 686,000 1,192,000-26,000 651,000-107,000 730,000 142,000 San Francisco, CA 1,028,000 2,945,000 2,114,000 1,233,000 776,000-321,000 427,000 193,000 San Jose-Silicon Valley, CA 1,285,000 5,498,000 4,173,000 1,618,000 605,000 752,000 1,198,000-383,000 San Mateo County, CA 273,000 1,564,000-588,000-341,000 244,000-361,000-130,000 126,000 Seattle-Tacoma-Bellevue, WA 1,120,000 3,808,000 3,084,000 475,000 1,170,000 346,000 1,093,000 396,000 Suburban MD 107,000 868,000 253,000-54,000-18,000-56,000 381,000 299,000 Suburban VA 1,720,000-120,000-2,015,000-1,254,000-70,000-342,000-349,000 253,000 Syracuse, NY 22,000-109,000-155,000-80,000-83,000-2,000 10,000 47,000 Tampa-St.Petersburg-Clearwater, FL -65,000 540,000 70,000-190,000 44,000-299,000 516,000 613,000 Tucson, AZ 13,000 175,000-65,000 3,000-69,000-60,000 61,000-31,000 Tulsa, OK -17,000 373,000 383,000 22,000 153,000 164,000 43,000 70,000 Ventura County, CA 26,000-215,000 197,000 109,000 180,000-72,000-21,000-21,000 Washington DC 3,873,000 799,000-95,000-248,000 203,000 12,000-61,000 246,000 Wichita, KS -4,000-50,000 30,000-12,000-12,000 41,000 13,000-131,000 Westchester, NY -608,000-328,000-209,000-26,000 138,000-40,000-282,000-145,000 Methodology and data sources explained on page 14 p = preliminary r = revision cassidyturley.com 7

Offi ce Vacancy Rates 2010 2011 2012 2012 1Q 2012 2Q 2012 3Q 2012 4Qr 2013 1Qp (Quarterly Average) United States 17.1% 16.4% 15.7% 15.4% 15.8% 15.7% 15.3% 15.4% Northeast 15.7% 15.7% 15.8% 15.6% 15.9% 15.9% 15.6% 15.6% Midwest 19.3% 19.3% 19.0% 18.9% 19.1% 19.0% 18.8% 18.9% South 16.6% 15.8% 14.6% 14.3% 14.7% 14.6% 14.2% 14.3% West 17.3% 16.2% 15.2% 14.7% 15.2% 15.2% 14.7% 14.7% Albuquerque, NM 14.4% 13.5% 14.1% 13.3% 14.1% 14.6% 13.6% 13.3% Anaheim-Santa Ana, CA 22.2% 19.7% 17.3% 15.6% 17.6% 16.8% 16.4% 15.6% Atlanta-Sandy Springs-Marietta, GA 21.3% 21.4% 19.9% 19.1% 20.6% 18.8% 19.2% 19.1% Austin-Round Rock, TX 18.1% 14.9% 10.6% 9.0% 10.7% 11.1% 9.3% 9.0% Baltimore, MD 19.7% 19.3% 18.7% 17.5% 18.5% 18.5% 18.5% 17.5% Birmingham-Hoover, AL 12.4% 11.2% 10.2% 9.5% 10.4% 10.0% 9.5% 9.5% Boston-Cambridge, MA 13.6% 14.4% 13.5% 12.2% 14.1% 13.6% 11.9% 12.2% Buffalo-Niagara Falls, NY 13.5% 12.1% 11.0% 10.6% 11.0% 11.0% 10.7% 10.6% Charleston-North Charleston, SC 14.6% 11.0% 10.3% 11.7% 11.4% 9.9% 9.2% 11.7% Charlotte-Gastonia-Concord, NC-SC 19.9% 19.6% 17.9% 17.1% 17.9% 17.4% 17.8% 17.1% Chattanooga, TN-GA 17.9% 14.9% 13.6% 15.3% 13.6% 13.3% 13.8% 15.3% Chicago-Joliet-Naperville, IL-IN-WI 17.8% 18.4% 17.8% 17.3% 17.8% 17.7% 17.4% 17.3% Cincinnati-Middletown, OH-KY-IN 22.9% 23.9% 24.2% 24.7% 24.4% 24.4% 24.8% 24.7% Cleveland-Elyria-Mentor, OH 19.0% 20.5% 21.3% 22.6% 21.7% 21.7% 21.8% 22.6% Colorado Springs, CO 16.6% 10.7% 9.3% 7.8% 8.8% 9.4% 9.2% 7.8% Columbia, SC 16.3% 14.7% 15.7% 17.3% 14.8% 16.8% 16.7% 17.3% Columbus, OH 17.5% 17.1% 15.8% 18.1% 16.4% 15.5% 15.6% 18.1% Dallas, TX 22.9% 22.1% 21.0% 20.2% 21.3% 20.8% 20.6% 20.2% Dayton, OH 28.0% 28.4% 27.5% 26.0% 28.2% 28.2% 26.0% 26.0% Denver-Aurora, CO 14.3% 13.7% 12.8% 12.2% 12.7% 12.9% 12.4% 12.2% Detroit-Warren-Livonia, MI 25.1% 24.5% 23.8% 23.3% 23.9% 23.8% 23.4% 23.3% Fairfield, CT 22.3% 21.9% 21.4% 21.7% 21.3% 21.3% 21.7% 21.7% Ft. Lauderdale, FL 18.2% 18.1% 17.1% 17.1% 17.2% 17.1% 17.1% 17.1% Greensboro-Winston-Salem, NC 18.8% 18.3% 16.6% 16.4% 16.9% 16.5% 16.1% 16.4% Greenville, SC 19.4% 18.1% 15.6% 15.0% 16.3% 14.8% 14.7% 15.0% Hartford-West Hartford-East Hartford, CT 21.7% 22.9% 23.9% 23.6% 24.3% 23.7% 23.5% 23.6% Honolulu, HI 7.1% 6.8% 6.2% 5.7% 6.2% 6.0% 5.9% 5.7% Houston, TX 15.9% 15.5% 13.3% 12.1% 14.1% 12.2% 12.0% 12.1% Indianapolis, IN 21.0% 20.6% 20.0% 19.5% 19.9% 20.2% 19.7% 19.5% Jacksonville, FL 19.8% 17.3% 16.6% 16.8% 16.6% 16.0% 16.7% 16.8% Kansas City, MO-KS 20.7% 21.7% 21.0% 19.8% 21.4% 21.0% 20.2% 19.8% Knoxville, TN 16.6% 17.1% 13.1% 13.4% 12.8% 13.1% 13.1% 13.4% Las Vegas-Paradise, NV 23.9% 21.8% 20.6% 18.9% 21.4% 20.5% 18.7% 18.9% Lexington-Fayette,KY 16.9% 18.6% 19.1% 16.8% 20.5% 18.4% 17.1% 16.8% Little Rock-N. Little Rock, AR 12.1% 11.5% 11.4% 12.1% 10.5% 12.1% 12.0% 12.1% Los Angeles-Long Beach-Glendale, CA 16.8% 16.8% 16.6% 16.9% 16.6% 16.5% 16.4% 16.9% Louisville, KY-IN 15.0% 15.6% 14.8% 15.1% 13.5% 15.3% 16.1% 15.1% Madison, WI 9.4% 10.2% 9.7% 9.6% 9.9% 9.7% 9.5% 9.6% Memphis, TN-MS-AR 19.0% 18.8% 18.0% 18.1% 17.9% 18.2% 17.7% 18.1% Miami-Dade, FL 14.3% 14.2% 11.7% 10.3% 11.8% 11.3% 10.7% 10.3% Milwaukee-Waukesha-West Allis, WI 20.9% 20.9% 20.7% 20.7% 20.3% 20.4% 21.0% 20.7% Minneapolis-St. Paul-Bloomington, MN-WI 19.3% 17.6% 17.5% 16.6% 17.7% 17.5% 17.3% 16.6% Nashville-Davidson-Murfreesboro, TN 12.6% 10.9% 9.9% 8.7% 10.0% 9.9% 9.2% 8.7% 8 Cassidy Turley

Offi ce Vacancy Rates 2010 2011 2012 2012 1Q 2012 2Q 2012 3Q 2012 4Qr 2013 1Qp (Quarterly Average) New Haven-Milford, CT 16.6% 16.1% 15.8% 16.2% 15.8% 15.8% 15.5% 16.2% New Orleans-Metairie-Kenner, LA 9.1% 10.1% 9.6% 9.8% 9.5% 9.5% 9.4% 9.8% New York, NY 13.2% 13.0% 12.7% 11.8% 13.3% 13.0% 11.6% 11.8% Long Island, NY 16.6% 16.2% 16.0% 14.8% 16.6% 15.8% 15.5% 14.8% Northern New Jersey 13.7% 14.4% 15.2% 15.0% 15.2% 15.2% 15.3% 15.0% Central New Jersey 16.6% 16.7% 16.7% 17.0% 16.4% 17.0% 16.8% 17.0% Oakland-East Bay, CA 18.3% 18.1% 17.1% 16.7% 17.3% 16.8% 16.3% 16.7% Oklahoma City, OK 16.6% 16.2% 13.2% 10.6% 13.1% 12.8% 11.4% 10.6% Omaha, NE-IA 15.6% 14.4% 14.9% 15.6% 14.5% 15.0% 15.7% 15.6% Orlando, FL 16.5% 13.8% 12.2% 12.1% 12.1% 12.8% 11.9% 12.1% West Palm Beach-Boca Raton, FL 18.4% 14.9% 13.8% 12.7% 14.2% 14.1% 12.7% 12.7% Philadelphia-Camden-Wilmington, PA-NJ 13.9% 13.3% 13.1% 13.5% 12.9% 13.4% 13.1% 13.5% Phoenix-Mesa-Scottsdale, AZ 23.6% 24.1% 23.4% 21.9% 23.7% 23.2% 22.1% 21.9% Pittsburgh, PA 15.5% 14.8% 14.5% 14.5% 15.2% 14.5% 14.0% 14.5% Portland-South Portland-Biddeford, ME 9.2% 11.3% 12.1% 12.1% 11.2% 12.8% 12.5% 12.1% Portland-Vancouver-Beaverton, OR-WA 14.3% 12.9% 11.9% 11.3% 12.5% 11.9% 11.3% 11.3% Raleigh-Durham, NC 18.7% 17.6% 16.4% 14.6% 16.8% 16.5% 15.1% 14.6% Rochester, NY 16.1% 14.1% 15.4% 16.0% 15.3% 15.4% 15.7% 16.0% Sacramento-Arden-Arcade-Roseville, CA 17.0% 17.7% 17.1% 16.1% 17.6% 17.0% 16.2% 16.1% Saint Louis, MO-IL 15.5% 16.0% 16.3% 16.5% 16.2% 16.4% 16.3% 16.5% Salt Lake City, UT 14.4% 12.1% 11.5% 11.3% 11.3% 12.4% 11.0% 11.3% San Antonio, TX 17.2% 17.7% 16.9% 16.9% 16.6% 17.3% 16.7% 16.9% San Diego-Carlsbad-San Marcos, CA 19.9% 19.3% 18.0% 18.1% 18.3% 18.0% 16.8% 18.1% San Francisco, CA 15.6% 12.4% 9.3% 8.7% 9.0% 9.4% 8.9% 8.7% San Jose-Silicon Valley, CA 18.5% 15.4% 13.2% 13.1% 13.4% 13.2% 12.7% 13.1% San Mateo County, CA 16.3% 13.2% 13.3% 13.4% 12.7% 13.4% 13.6% 13.4% Seattle-Tacoma-Bellevue, WA 16.9% 15.1% 12.4% 11.2% 12.3% 12.2% 11.6% 11.2% Suburban MD 15.2% 15.4% 15.6% 16.0% 15.5% 15.6% 15.6% 16.0% Suburban VA 14.3% 14.1% 15.9% 16.4% 15.8% 16.0% 16.4% 16.4% Syracuse, NY 13.1% 14.2% 15.9% 15.6% 16.1% 16.1% 16.0% 15.6% Tampa-St.Petersburg-Clearwater, FL 21.0% 20.7% 20.1% 18.9% 20.2% 20.3% 19.6% 18.9% Tucson, AZ 14.2% 14.5% 14.8% 15.3% 14.8% 15.8% 14.9% 15.3% Tulsa, OK 17.6% 16.4% 15.0% 13.9% 15.3% 14.5% 14.3% 13.9% Ventura County, CA 17.5% 20.3% 18.5% 19.3% 17.3% 18.2% 19.0% 19.3% Washington DC 11.1% 10.4% 10.4% 10.4% 10.4% 10.3% 10.6% 10.4% Wichita, KS 17.7% 17.4% 17.4% 18.3% 17.6% 17.3% 17.3% 18.3% Westchester, NY 19.8% 20.2% 20.3% 19.2% 20.2% 20.4% 20.2% 19.2% Methodology and data sources explained on page 14 p = preliminary r = revision cassidyturley.com 9

Asking Rents 2010 2011 2012 2012 1Q 2012 2Q 2012 3Q 2012 4Qr 2013 1Qp (Quarterly Average) United States $21.43 $21.42 $21.72 $21.63 $21.70 $21.69 $21.63 $21.64 Northeast $23.56 $23.92 $24.44 $24.13 $24.14 $24.20 $24.03 $24.16 Midwest $18.27 $18.26 $18.25 $18.34 $18.36 $18.22 $18.06 $17.94 South $20.81 $20.60 $20.69 $20.64 $20.71 $20.71 $20.70 $20.63 West $23.01 $23.03 $23.69 $23.58 $23.73 $23.72 $23.74 $23.84 Albuquerque, NM $16.12 $15.58 $15.29 $15.31 $15.35 $15.28 $15.21 $15.28 Anaheim-Santa Ana, CA $24.48 $23.50 $23.01 $23.11 $23.04 $22.90 $23.00 $23.20 Atlanta-Sandy Springs-Marietta, GA $19.10 $18.77 $18.70 $18.93 $18.89 $18.22 $18.74 $18.70 Austin-Round Rock, TX $24.81 $24.36 $25.11 $24.54 $25.04 $25.35 $25.52 $26.16 Baltimore, MD $22.66 $22.19 $21.88 $21.98 $21.91 $21.44 $22.18 $22.28 Birmingham-Hoover, AL $17.67 $17.74 $17.92 $17.92 $18.02 $17.95 $17.79 $17.74 Boston-Cambridge, MA $33.12 $34.48 $34.98 $31.06 $30.44 $30.64 $28.94 $28.15 Buffalo-Niagara Falls, NY $16.38 $16.73 $16.70 $16.75 $16.72 $16.74 $16.61 $16.54 Charleston-North Charleston, SC $19.25 $19.01 $18.30 $18.65 $18.36 $18.30 $17.87 $16.80 Charlotte-Gastonia-Concord, NC-SC $19.69 $19.47 $20.50 $20.41 $20.41 $20.38 $20.81 $20.64 Chattanooga, TN-GA $14.22 $13.92 $15.02 $15.04 $15.07 $15.05 $14.93 $15.19 Chicago-Joliet-Naperville, IL-IN-WI $24.64 $24.43 $25.10 $25.11 $25.18 $25.17 $24.92 $24.81 Cincinnati-Middletown, OH-KY-IN $17.88 $18.15 $18.31 $18.47 $18.32 $18.25 $18.19 $18.02 Cleveland-Elyria-Mentor, OH $18.17 $17.83 $18.07 $18.01 $18.11 $18.10 $18.05 $17.51 Colorado Springs, CO $15.49 $16.04 $16.71 $16.31 $16.96 $16.81 $16.75 $16.72 Columbia, SC $15.88 $15.60 $15.51 $15.51 $15.55 $15.37 $15.62 $15.87 Columbus, OH $17.33 $17.11 $18.47 $18.35 $18.27 $18.43 $18.84 $18.77 Dallas, TX $19.78 $19.37 $19.95 $19.18 $20.13 $20.45 $20.05 $19.84 Dayton, OH $14.75 $14.56 $14.29 $14.46 $14.32 $14.32 $14.06 $14.06 Denver-Aurora, CO $19.92 $20.14 $20.22 $19.89 $19.89 $20.55 $20.55 $21.13 Detroit-Warren-Livonia, MI $18.68 $18.31 $17.91 $18.21 $17.96 $17.81 $17.67 $16.30 Fairfield, CT $31.21 $31.06 $32.61 $32.93 $32.81 $32.51 $32.19 $32.89 Ft. Lauderdale, FL $24.88 $24.49 $23.90 $24.05 $24.14 $23.72 $23.68 $23.81 Greensboro-Winston-Salem, NC $15.31 $15.44 $15.30 $15.35 $15.33 $15.29 $15.25 $15.23 Greenville, SC $16.07 $15.76 $15.61 $15.59 $15.82 $15.44 $15.61 $15.63 Hartford-West Hartford-East Hartford, CT $19.09 $19.39 $19.02 $19.07 $19.01 $19.03 $18.97 $18.97 Honolulu, HI $27.19 $28.56 $27.48 $28.78 $27.67 $26.70 $26.76 $25.90 Houston, TX $23.15 $22.96 $24.61 $23.77 $24.52 $24.91 $25.23 $25.10 Indianapolis, IN $17.55 $18.08 $18.08 $18.09 $18.09 $18.03 $18.09 $18.03 Jacksonville, FL $17.69 $17.05 $17.01 $17.07 $17.10 $16.94 $16.94 $17.09 Kansas City, MO-KS $18.35 $18.10 $17.91 $17.88 $17.94 $17.89 $17.94 $18.05 Knoxville, TN $15.92 $15.85 $15.71 $15.88 $15.90 $15.74 $15.33 $15.13 Las Vegas-Paradise, NV $22.68 $21.59 $20.63 $20.88 $20.87 $20.72 $20.07 $19.54 Lexington-Fayette,KY $16.74 $15.89 $15.61 $15.52 $15.58 $15.62 $15.72 $15.71 Little Rock-N. Little Rock, AR $15.05 $14.98 $15.28 $15.05 $15.41 $15.32 $15.34 $15.32 Los Angeles-Long Beach-Glendale, CA $29.70 $27.14 $29.78 $29.38 $29.78 $29.84 $30.10 $29.85 Louisville, KY-IN $16.90 $17.00 $16.59 $16.61 $16.46 $16.44 $16.83 $16.75 Madison, WI $16.70 $17.36 $17.16 $17.25 $17.22 $16.86 $17.32 $17.06 Memphis, TN-MS-AR $18.95 $18.82 $18.79 $18.86 $18.84 $18.73 $18.73 $18.86 Miami-Dade, FL $28.55 $27.52 $27.16 $27.31 $27.05 $27.23 $27.04 $27.19 Milwaukee-Waukesha-West Allis, WI $18.38 $18.35 $17.95 $18.28 $18.22 $17.57 $17.73 $17.58 Minneapolis-St. Paul-Bloomington, MN-WI $24.60 $24.58 $24.63 $24.64 $25.56 $24.98 $23.32 $23.45 Nashville-Davidson-Murfreesboro, TN $20.17 $19.96 $19.47 $19.26 $19.12 $19.64 $19.86 $20.09 10 Cassidy Turley

Asking Rents 2010 2011 2012 2012 1Q 2012 2Q 2012 3Q 2012 4Qr 2013 1Qp (Quarterly Average) New Haven-Milford, CT $20.38 $20.01 $20.44 $20.11 $20.40 $20.51 $20.73 $20.97 New Orleans-Metairie-Kenner, LA $15.39 $14.96 $15.09 $14.97 $14.97 $15.03 $15.38 $15.03 New York, NY $47.66 $51.99 $57.70 $55.58 $57.02 $58.77 $59.44 $61.65 Long Island, NY $26.00 $25.69 $25.66 $25.87 $25.53 $25.63 $25.59 $25.67 Northern New Jersey $25.42 $25.02 $24.72 $24.67 $24.79 $24.85 $24.58 $24.43 Central New Jersey $23.21 $23.45 $23.61 $23.82 $23.44 $23.80 $23.38 $23.23 Oakland-East Bay, CA $20.85 $20.13 $20.39 $20.21 $20.46 $20.37 $20.50 $20.74 Oklahoma City, OK $13.67 $13.41 $13.16 $13.25 $13.14 $13.14 $13.11 $13.04 Omaha, NE-IA $17.01 $17.30 $16.82 $16.94 $16.94 $17.09 $16.28 $16.72 Orlando, FL $20.20 $19.69 $19.47 $19.71 $19.59 $19.42 $19.19 $19.07 West Palm Beach-Boca Raton, FL $27.73 $27.09 $26.85 $26.81 $26.99 $26.94 $26.68 $25.47 Philadelphia-Camden-Wilmington, PA-NJ $22.99 $23.05 $23.24 $23.18 $23.31 $23.28 $23.18 $23.29 Phoenix-Mesa-Scottsdale, AZ $22.17 $21.05 $20.27 $20.42 $20.23 $20.27 $20.17 $19.83 Pittsburgh, PA $19.49 $19.38 $19.39 $19.46 $19.32 $19.30 $19.51 $19.25 Portland-South Portland-Biddeford, ME $14.50 $14.36 $13.63 $14.40 $14.15 $13.27 $12.69 $12.55 Portland-Vancouver-Beaverton, OR-WA $20.61 $20.60 $20.59 $20.45 $20.52 $20.62 $20.76 $20.90 Raleigh-Durham, NC $20.02 $19.88 $19.60 $19.89 $19.63 $19.46 $19.41 $19.30 Rochester, NY $14.08 $13.96 $13.91 $13.88 $13.93 $13.83 $13.98 $13.91 Sacramento-Arden-Arcade-Roseville, CA $21.78 $20.49 $19.71 $19.80 $19.80 $19.68 $19.56 $19.92 Saint Louis, MO-IL $19.44 $19.22 $18.82 $18.88 $18.73 $18.88 $18.78 $18.53 Salt Lake City, UT $17.76 $17.55 $18.43 $17.59 $17.62 $19.16 $19.36 $19.50 San Antonio, TX $19.05 $19.43 $19.61 $19.53 $19.59 $19.65 $19.67 $19.59 San Diego-Carlsbad-San Marcos, CA $27.57 $26.94 $26.70 $26.64 $26.64 $26.76 $26.76 $27.24 San Francisco, CA $32.04 $35.75 $44.13 $44.64 $44.85 $43.54 $43.50 $45.46 San Jose-Silicon Valley, CA $25.19 $25.59 $27.72 $26.48 $27.69 $28.18 $28.51 $29.21 San Mateo County, CA $30.81 $36.42 $40.08 $39.12 $40.20 $40.80 $40.20 $40.44 Seattle-Tacoma-Bellevue, WA $27.24 $26.67 $26.94 $26.47 $26.75 $27.09 $27.45 $27.25 Suburban MD $26.61 $26.62 $26.47 $26.83 $26.38 $26.49 $26.18 $26.38 Suburban VA $29.56 $30.28 $31.51 $31.23 $31.58 $31.77 $31.46 $31.18 Syracuse, NY $14.18 $14.89 $15.47 $15.64 $15.52 $15.38 $15.34 $15.46 Tampa-St.Petersburg-Clearwater, FL $20.03 $19.85 $19.91 $20.16 $20.00 $19.90 $19.57 $19.62 Tucson, AZ $20.17 $19.67 $19.02 $19.15 $19.14 $18.89 $18.87 $18.89 Tulsa, OK $15.77 $15.77 $15.76 $15.69 $15.66 $15.77 $15.90 $15.97 Ventura County, CA $24.16 $23.67 $23.70 $23.68 $23.80 $23.73 $23.62 $23.39 Washington DC $48.70 $49.41 $49.80 $49.39 $49.69 $50.18 $49.95 $49.67 Wichita, KS $12.16 $11.86 $11.78 $11.91 $11.99 $11.62 $11.59 $11.87 Westchester, NY $25.72 $25.39 $25.47 $25.56 $25.66 $25.39 $25.27 $25.50 Methodology and data sources explained on page 14 p = preliminary r = revision cassidyturley.com 11

Inventory Inventory Vacant Stock Inventory Change (YTD 2013) U/C (as of 2013 Q1) National Total 4,980,178,000 758,907,000 4,491,000 49,746,000 Albuquerque, NM 13,469,000 1,791,000 0 282,000 Anaheim-Santa Ana, CA 61,499,000 9,595,000 25,000 0 Atlanta-Sandy Springs-Marietta, GA 193,686,000 36,994,000 0 1,217,000 Austin-Round Rock, TX 40,724,000 3,665,000 15,000 297,000 Baltimore, MD 74,248,000 12,956,000 22,000 3,417,000 Birmingham-Hoover, AL 18,418,000 1,750,000 0 0 Boston-Cambridge, MA 149,800,000 18,276,000 0 4,220,000 Buffalo-Niagara Falls, NY 20,934,000 2,221,000 0 20,000 Charleston-North Charleston, SC 7,954,000 928,000 75,000 60,000 Charlotte-Gastonia-Concord, NC-SC 44,839,000 7,667,000 0 0 Chattanooga, TN-GA 4,852,000 744,000 0 0 Chicago-Joliet-Naperville, IL-IN-WI 244,430,000 42,369,000 62,000 909,000 Cincinnati-Middletown, OH-KY-IN 33,156,000 8,186,000 0 410,000 Cleveland-Elyria-Mentor, OH 35,953,000 8,123,000 0 519,000 Colorado Springs, CO 15,102,000 1,178,000 27,000 0 Columbia, SC 10,799,000 1,864,000 0 0 Columbus, OH 24,312,000 4,403,000 0 578,000 Dallas, TX 206,970,000 41,822,000 437,000 641,000 Dayton, OH 13,972,000 3,634,000 0 128,000 Denver-Aurora, CO 171,035,000 20,866,000 84,000 1,162,000 Detroit-Warren-Livonia, MI 75,857,000 17,643,000 47,000 0 Fairfield, CT 53,911,000 11,699,000 0 0 Ft. Lauderdale, FL 27,147,000 4,631,000 0 877,000 Greensboro-Winston-Salem, NC 17,891,000 2,939,000 0 0 Greenville, SC 8,994,000 1,353,000 0 151,000 Hartford-West Hartford-East Hartford, CT 24,691,000 5,829,000 0 107,000 Honolulu, HI 25,683,000 1,458,000 0 0 Houston, TX 219,761,000 26,591,000 240,000 5,701,000 Indianapolis, IN 31,729,000 6,187,000 0 0 Jacksonville, FL 25,039,000 4,210,000 0 32,000 Kansas City, MO-KS 48,807,000 9,649,000 0 760,000 Knoxville, TN 7,124,000 955,000 0 0 Las Vegas-Paradise, NV 26,574,000 5,014,000 0 423,000 Lexington-Fayette,KY 4,503,000 758,000 0 0 Little Rock-N. Little Rock, AR 10,542,000 1,274,000 0 0 Los Angeles-Long Beach-Glendale, CA 168,115,000 28,372,000 0 165,000 Louisville, KY-IN 21,576,000 3,258,000 0 400,000 Madison, WI 22,033,000 2,112,000 0 453,000 Memphis, TN-MS-AR 19,601,000 3,550,000 0 315,000 Miami-Dade, FL 43,506,000 4,479,000 116,000 161,000 Milwaukee-Waukesha-West Allis, WI 27,611,000 5,716,000 0 0 Minneapolis-St. Paul-Bloomington, MN-WI 68,982,000 11,451,000 0 0 Nashville-Davidson-Murfreesboro, TN 32,855,000 2,874,000 0 511,000 New Haven-Milford, CT 12,241,000 1,979,000 0 39,000 New Orleans-Metairie-Kenner, LA 36,096,000 3,535,000 0 0 New York, NY 428,892,000 50,527,000 0 10,482,000 Long Island, NY 72,310,000 10,702,000 0 75,000 Northern New Jersey 149,040,000 22,398,000 0 752,000 Central New Jersey 106,233,000 18,076,000 55,000 139,000 12 Cassidy Turley

Inventory Inventory Vacant Stock Inventory Change (YTD 2013) U/C (as of 2013 Q1) Oakland-East Bay, CA 109,837,000 18,343,000 0 60,000 Oklahoma City, OK 20,038,000 2,131,000 0 0 Omaha, NE-IA 18,337,000 2,856,000 23,000 1,149,000 Orlando, FL 33,158,000 4,023,000 88,000 29,000 West Palm Beach-Boca Raton, FL 24,247,000 3,087,000 30,000 149,000 Philadelphia-Camden-Wilmington, PA-NJ 113,591,000 15,338,000 505,000 453,000 Phoenix-Mesa-Scottsdale, AZ 96,741,000 21,186,000 0 208,000 Pittsburgh, PA 50,170,000 7,261,000 129,000 1,642,000 Portland-South Portland-Biddeford, ME 17,886,000 2,161,000 0 0 Portland-Vancouver-Beaverton, OR-WA 41,752,000 4,729,000 0 42,000 Raleigh-Durham, NC 36,119,000 5,273,000 0 301,000 Rochester, NY 15,736,000 2,518,000 0 157,000 Sacramento-Arden-Arcade-Roseville, CA 85,501,000 13,766,000 19,000 0 Saint Louis, MO-IL 48,324,000 7,974,000 0 405,000 Salt Lake City, UT 30,942,000 3,503,000 139,000 695,000 San Antonio, TX 30,274,000 5,123,000 317,000 278,000 San Diego-Carlsbad-San Marcos, CA 67,764,000 12,078,000 0 969,000 San Francisco, CA 83,411,000 7,257,000 0 1,190,000 San Jose-Silicon Valley, CA 201,807,000 26,437,000 680,000 1,097,000 San Mateo County, CA 50,759,000 6,817,000 59,000 300,000 Seattle-Tacoma-Bellevue, WA 85,489,000 9,575,000 77,000 648,000 Suburban MD 72,678,000 11,629,000 779,000 418,000 Suburban VA 159,787,000 26,243,000 0 2,064,000 Syracuse, NY 12,696,000 1,983,000 0 29,000 Tampa-St.Petersburg-Clearwater, FL 59,745,000 11,283,000 272,000 19,000 Tucson, AZ 6,243,000 956,000 0 47,000 Tulsa, OK 20,515,000 2,854,000 0 408,000 Ventura County, CA 8,495,000 1,639,000 18,000 0 Washington DC 122,214,000 12,694,000 152,000 1,573,000 Wichita, KS 13,917,000 2,547,000 0 15,000 Westchester, NY 38,509,000 7,394,000 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 400 million square feet managed on behalf of institutional, private and corporate clients and $22 billion in completed transactions for 2012. 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 3,800 professionals More than 970 brokers 2012 transactions Gross transaction volume $22 billion Gross capital markets volume $9.2 billion 400 million sf managed portfolio More than 23,000 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 2013 Global Outsourcing 100 Over 80% of real estate executives familiar with our brand ranked it Very Good or Excellent Wall Street Journal survey Ranked a Top 5 Brand Lipsey s 2013 Commercial Real Estate Brandy Survey Ranked in the Top 5 in Best Practices Index Commercial Property Executive 2012 Greenest Company Index Commercial Property Executive Named by the EPA a 2013 ENERGY STAR Partner of the Year 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