U.S. Offi ce Trends Report. 1st Quarter 2011

U.S. Offi ce Trends Report 1st Quarter 2011

Contents U.S. Office Sector Analysis...3-5 Investment Sales...6 Net Absorption by Metro...7-8 Vacancy Rates by Metro...9-10 Asking Rents by Metro...11-12 Inventory by Metro...13-14 Methodology...15 *Updated April 4, 2011 Kevin Thorpe Chief Economist 2101 L Street, NW, Ste. 700 Washington, DC 20037 Kevin.Thorpe@cassidyturley.com 2 Cassidy Turley

U.S. Offi ce Sector Analysis Market Summary Rising oil prices, the turmoil in the Middle East, the disaster in Japan all will slow the CRE recovery - but will not derail it The employment picture is turning brighter, particularly for offi ce-using jobs Offi ce leasing fundamentals continue to improve; demand consistently positive and vacancy is now inching down Signs increasingly evident that the demand-recovery is spreading beyond the major metros Market Indicators 1st Quarter 2011 Net Absorption 7.5M Vacancy 2011 Q1 16.5% Asking Rents $21.36 12-month Forecast Investment sales showing no signs of slowing New Supply 6.4M Economy The recovery in the U.S. economy and its property markets are being tested yet again. The recent turmoil in the Middle East and the disaster in Japan will temper near-term economic growth prospects both at home and abroad. Although it is too early to quantify the full economic impact of these events, the latest information on consumer confi dence gives us our fi rst indication that the impact will impede short-term growth. After trending up for several months, the Conference Board s Consumer Confi dence Index plunged from 72 in February to 63.2 in March. Given the tight relationship between confi dence and personal consumption, we are likely to see a pull-back in consumer spending in the coming months. In addition, the recent surge in energy and food prices is causing infl ation to outstrip the rise in personal income; the result: real disposal income has turned negative. This will place a further drag on short-term consumer spending, impacting businesses bottom-line profi tability and slowing demand for offi ce space in the short-term. Real GDP is now projected to grow 3.4% in the fi rst quarter of 2011, down from the initial projection of 4.0%. It is not all bad news. In fact, the core components that are driving the economic recovery remain fi rmly intact. Businesses gross profi t margins remain healthy, equity markets have regained what they lost immediately following the Japan disaster, and household debt-income ratios are approaching the historic norm. Most importantly for the offi ce sector, labor markets are fi nally gaining momentum. After sliding during the summer months of 2010, the U.S. job market has improved and the economy has been consistently adding jobs since October of 2010. The latest fi gures reported by the Bureau of Labor Statistics (BLS) were extremely encouraging. Overall, the U.S. economy created 216,000 jobs driven entirely by the private sector - and the unemployment rate fell 10 bps to 8.8%. But the details of March s employment report were even more uplifting for the offi ce sector, as it confi rmed for the second straight month that the hiring of permanent employees is on the rise. In 2010, over 90% of all job growth in the professional and business services sector was temporary hires. In March of 2011, that percentage dropped to 36%. The hiring of permanent employees is an important trend to watch since it signals business are gaining confi dence in the recovery, and as payrolls grow, demand for real estate always follows suit. U.S. Absorption vs. Vacancy U.S. Office-using Employment 30 18% 200 Millions, Sq. Ft. 20 10 0-10 -20-30 2006 1Q 2006 2Q 2006 3Q 2006 4Q 2007 1Q 2007 2Q 2007 3Q 2007 4Q 2008 1Q 2008 2Q Source: Cassidy Turley Research Absorption 2008 3Q 2008 4Q 2009 1Q 2009 2Q Vacancy 2009 3Q 2009 4Q 2010 1Q 2010 2Q 2010 3Q 2010 4Q 2011 Q1 17% 16% 15% 14% 13% 12% 11% 10% 000's 100 0-100 Q2 07 Q3 07-200 -300-400 -500-600 Source: BLS Q4 02 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Office-using Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 cassidyturley.com 3

U.S. Offi ce Sector Analysis Office Sector The recovery in the U.S. offi ce sector is gaining momentum and is increasingly spreading to geographies beyond the major metros. In the fi rst quarter of 2011, net demand registered at 7.5 million square feet (msf), marking the fourth consecutive quarter of net growth. Shadow space 1 continues to weigh-down overall demand metrics. Based on BLS data on offi ce-using employment, net demand should be running at levels that are nearly three times higher than what is currently being observed. In other words, businesses are fi lling up space that they weren t utilizing during the recession, but it is simply not being captured in the data. The fi rst quarter also revealed that the demand-recovery - which was primarily concentrated in DC, NY, and Dallas last year - is now spreading more evenly across the U.S. Of the 82 markets tracked, 52 registered increases in net absorption. This is consistent with recent employment data which showed that 35 states reported increases in non-farm payroll employment in February of 2011 compared to the previous month. Now that we have seen sustained increases in net demand, U.S. offi ce vacancy is fi nally beginning to tighten. In the fi rst quarter of 2011, vacancy rates dropped 30 bps from the previous quarter to 16.5%. Still, vacancy remains 240 bps above its historical average of 14.1%. The U.S. offi ce sector fi nally saw a rise in rents this quarter, posting a 5 cent increase to end the fi rst quarter at $21.36. The strong rebound in offi ce sales provides the clearest indication that the offi ce sector recovery is gaining traction. Offi ce sales volume in the fi rst two months of 2011 totaled $6.9B, up 180% compared to the same period one year ago. Cap rates have dropped 150 bps from their peak in 2009 and are settling in at a range between 7.2% and 7.4%. With values fi rming, investors are increasingly bringing more properties to the market. In February, there was a total of $6.B of buildings listed for sale the highest monthly volume of offerings since June of 2008. Outlook The pre-conditions for a stronger rebound in the offi ce sector are in place. Increasing momentum in the labor markets signals that demand will continue to strengthen and vacancy will continue to erode. Risks remain elevated, however; any number of things could still go wrong. In addition to the risks mentioned earlier, housing continues to struggle, the European Sovereign Debt crisis could spill over, and there is still uncertainty surrounding proposed federal budget cuts. Nevertheless, the core of the recovery remains intact, and so does the probability of continued improvement in the offi ce sector. Recovery is Spreading Job Growth, Jan-Feb 2011 WA MT ND VT NH ME > 5,000 jobs added 0 to 5,000 jobs added decline in jobs CA OR NV ID UT WY CO SD NE KS MN IA MO WI IL MI OH IN KY WV PA VA NY NJ DE MD MA RI CT -12.8 to 0 0 to 4.6 AZ NM OK AR TN SC NC 4.6 to 96.5 AK TX LA MS AL GA FL HI Source: Moody s 1 Space that is leased by businesses but not currently utilized 4 Cassidy Turley

U.S. Offi ce Sector Analysis Regional Summary The Northeast region recorded -187,000 sf of net absorption in the fi rst quarter of 2011, the fi rst quarter of negative absorption since the fourth quarter of 2009. Philadelphia started the year off with the highest net absorption for the region, registering +523,000 sf of demand. Fairfi eld, Long Island and Boston were close behind with +381,000, +378,000 and +317,000 sf respectively. New York City lost some of its steam in the fi rst quarter registering the highest net decline in the country (-1.5 msf), primarily due to tenant s relocating and/or consolidating. Despite the setback this quarter, New York s rents remain the highest in the country, averaging $50.66. It should also be noted that if NY City were removed from the regional equation, net demand in the Northeast registered at +1.4 msf a further indication that the recovery is spreading beyond the major metros. Vacancy for the Northeast region ended the quarter at 15.4% - the lowest of all regions - while average asking rents rose 16 cents to $23.52. The Midwest s offi ce sector continues to lag the nation in its recovery. In the fi rst quarter of 2011, net absorption for the region registered at -325,000 sf. Nevertheless, there are pockets within region that are demonstrating rebounding fundamentals. Minneapolis led the region with +608,000 sf of net absorption the sixth highest gain in the country. Other notable gains were in Tulsa (+246,000) and Omaha (+239,000). Vacancy dropped 10 basis points this quarter, registering at 19.6%, remaining the highest vacancy across all regions. Average asking rents declined in the fi rst quarter of 2011 to $18.26, 14 cents lower than the previous quarter. The South continues to post stronger demand, recording +3.5 msf of net absorption for the fi rst quarter of 2011. Houston was the strongest performer in the south this quarter, absorbing +710,000 sf, boosted by the BG Group expanding their lease to 354,000 sf in their newly delivered namesake building. Other notable markets include Washington, DC (+406,000), Orlando (+346,000), Suburban Maryland (+340,000) and Jacksonville (+302,000). Vacancy continues to tighten in the South, dropping 20 bps from last quarter to 15.8%, although asking rates are still declining, dropping another 3 cents to $20.65. The recovery in the West is gaining momentum. In the fi rst quarter, the West registered +4.4 msf of net absorption, the highest in the nation. San Jose-Silicon Valley posted the highest level of net demand in the country this quarter, recording +1.29 msf, which can mostly be attributed to a lease signed by Hewlett Packard for 394,000 sf. Other notables gains were observed in San Mateo (+1.02 msf), Seattle (+1.0 msf) and Denver (+640,000). Vacancy dropped 30 basis points in the West to 16.5%, its fourth straight quarter of declining vacancy. Average asking rents also improved, gaining 18 cents to end the fi rst quarter at an average of $23.02 an indication that rents might be fi rming after more than two years of steady declines. Asking Rents Select Metros, 1st Quarter 2011 Rents % Change (y/y) New York, NY $50.66 0.5% Washington DC $49.39 2.4% San Mateo County, CA $34.44 8.7% San Francisco, CA $32.30 5.1% Suburban VA $29.98 2.3% Fairfield, CT $29.93-0.1% Los Angeles, CA $29.09-2.4% Boston, MA $29.02 4.5% Miami, FL $27.70-4.8% San Diego, CA $27.36-2.6% Westchester, NY $26.71-0.4% Suburban MD $26.38-1.1% Long Island, NY $25.93-0.8% Northern New Jersey $25.52-0.2% Minneapolis, MN $24.55 0.9% Chicago, IL $24.40-1.8% Austin, TX $24.12-4.2% Central New Jersey $23.64-0.4% Philadelphia, PA $22.84-1.7% Houston, TX $22.65-2.5% Baltimore, MD $22.53 0.7% Phoenix, AZ $21.62-6.6% Sacramento, CA $20.92-4.2% Nashville, TN $20.34-0.3% Oakland-East Bay, CA $20.28-4.5% Denver, CO $20.24 1.3% Milwaukee, WI $20.00-1.1% Dallas, TX $19.80-1.8% Source: Cassidy Turley Research Net Absorption Selected Markets, Q1 2011 1.5 Absorption as % of Inventory Selected Markets, Q1 2011 2.5% 1 2.0% Millions Square Feet 0.5 0-0.5-1 -1.5-2 San Jose-Silicon Valley San Mateo County Seattle Houston Denver Minneapolis Philadelphia San Francisco Washington DC Portland Fairfield Long Island Suburban MD Boston Charlotte Louisville Dallas Baltimore Nashville N New Jersey Kansas City Cincinnati Columbus Phoenix Indianapolis Suburban VA San Diego Sacramento Central New Jersey Oakland-East Bay New York Source: Cassidy Turley Research 1.5% 1.0% 0.5% 0.0% -0.5% -1.0% San Mateo County Louisville Minneapolis San Jose-Silicon Fairfield San Francisco Long Island Suburban MD Nashville Denver Washington DC Charlotte Milwaukee Baltimore Raleigh Saint Louis N New Jersey Dallas Kansas City Phoenix Suburban VA Cincinnati Indianapolis Columbus New York Sacramento San Diego C New Jersey Oakland-East Bay Source: Cassidy Turley Research cassidyturley.com 5

Investment Sales U.S. Office Sales Volume Office Sale Volume for Select Metros YTD 2011 $50 $45 $40 $ Volume (Millions) Avg PPU Washington, DC $1,603.9 $537 Boston, MA $850.8 $258 Los Angeles, CA $747.9 $494 Manhattan, NY $504.5 $438 Houston, TX $339.6 $200 Billions $35 $30 $25 $20 $15 $10 $5 San Francisco, CA $285.4 $138 $0 Suburban VA $249.2 $371 Denver, CO $234.3 $317 Atlanta, GA $209.0 $244 Chicago, IL $191.8 N/A Feb-05 Jun-05 Oct-05 Feb-06 Jun-06 Oct-06 Source: Real Capital Analytics Feb-07 Jun-07 Oct-07 Feb-08 Jun-08 closed Kansas City, MO $183.0 N/A East Bay, CA $140.9 $502 U.S. Office Cap Rates Northern NJ $132.3 $186 Sacramento, CA $94.6 $203 10% Dallas, TX $94.0 $62 Nashville, TN $87.0 $116 9% Minneapolis, MN $85.5 $164 Cincinnati, OH $69.0 N/A 8% Source: Real Capital Analytics, Cassidy Turley Research 7% 6% 5% 4% Feb-05 Jun-05 Oct-05 Feb-06 Jun-06 Oct-06 Feb-07 Jun-07 Oct-07 Feb-08 Jun-08 Oct-08 Feb-09 Jun-09 Oct-09 Feb-10 Jun-10 Oct-10 Feb-11 CBD Suburban Source: Real Capital Analytics U.S. Volume of New Office Listings $16 $14 $12 $10 $8 $6 $4 $2 $0 Feb-05 Jun-05 Oct-05 Feb-06 Jun-06 Oct-06 Feb-07 Jun-07 Oct-07 Feb-08 Jun-08 Oct-08 Feb-09 Jun-09 Oct-09 Feb-10 Jun-10 Oct-10 Feb-11 Oct-08 Feb-09 Jun-09 Oct-09 Feb-10 Jun-10 Oct-10 Feb-11 Billions offered 6 Cassidy Turley Source: Real Capital Analytics

Net Absorption 2008 2009 2010 2010 1Q 2010 2Q 2010 3Q 2010 4Qr 2011 1Qp United States -16,256,000-66,105,000 19,637,000-3,030,000 5,998,000 6,814,000 9,733,000 7,454,000 Northeast -15,101,000-18,545,000 7,083,000 1,247,000 1,513,000 1,918,000 2,405,000-187,000 Midwest -1,005,000-10,071,000-3,329,000-2,149,000-240,000-1,294,000 354,000-325,000 South 10,307,000-12,378,000 11,942,000-1,600,000 3,258,000 5,309,000 4,854,000 3,526,000 West -10,458,000-25,112,000 3,940,000-528,000 1,467,000 882,000 2,119,000 4,440,000 Albuquerque, NM 12,000-396,000 81,000 115,000-156,000-10,000 131,000 177,000 Anaheim-Santa Ana, CA -2,621,000-3,949,000-410,000-23,000-316,000-54,000-17,000 80,000 Atlanta-Sandy Springs-Marietta, GA 174,000-1,740,000-713,000-157,000-121,000-659,000 224,000-447,000 Austin-Round Rock, TX 938,000-131,000 891,000-137,000 623,000 187,000 218,000 16,000 Baltimore, MD 448,000 62,000-159,000-989,000-28,000 613,000 245,000 164,000 Birmingham-Hoover, AL 449,000-617,000-49,000-92,000 71,000-38,000 11,000 116,000 Boston-Cambridge, MA 293,000-1,232,000 57,000-316,000-600,000 488,000 485,000 317,000 Buffalo-Niagara Falls, NY 103,000-130,000-93,000-66,000-8,000-28,000 8,000-12,000 Charleston-North Charleston, SC 172,000-275,000 138,000-20,000 161,000-105,000 102,000 141,000 Charlotte-Gastonia-Concord, NC-SC 533,000 220,000 1,089,000 101,000 48,000 618,000 322,000 250,000 Chattanooga, TN-GA 15,000-33,000-54,000-109,000 44,000-51,000 64,000 50,000 Chicago-Joliet-Naperville, IL-IN-WI 332,000-3,223,000-422,000-1,026,000 711,000 249,000-355,000-418,000 Cincinnati-Middletown, OH-KY-IN 479,000-152,000-350,000-183,000-122,000-84,000 39,000-70,000 Cleveland-Elyria-Mentor, OH -254,000-438,000-549,000-62,000 114,000-600,000-1,000-301,000 Colorado Springs, CO -340,000-244,000 685,000 210,000 102,000 24,000 349,000 437,000 Columbia, SC 124,000-75,000-131,000-54,000-103,000 28,000-3,000 29,000 Columbus, OH 678,000-641,000-552,000-186,000-80,000-298,000 11,000-87,000 Dallas, TX 3,117,000 601,000 894,000-458,000-524,000 1,090,000 786,000 164,000 Dayton, OH -195,000-817,000-58,000 N/A -142,000 N/A 83,000 N/A Denver-Aurora, CO 25,000-335,000 2,284,000 983,000 245,000 30,000 1,025,000 640,000 Detroit-Warren-Livonia, MI -2,750,000-1,534,000-1,035,000-368,000-116,000-704,000 153,000-140,000 Fairfield, CT -771,000-2,305,000-661,000-105,000-714,000-182,000 340,000 381,000 Ft. Lauderdale, FL -168,000-947,000 31,000-63,000-19,000 121,000-8,000 100,000 Greensboro-Winston-Salem, NC 293,000 84,000 22,000-17,000 131,000-151,000 59,000 13,000 Greenville, SC 181,000-367,000 98,000 13,000-27,000 32,000 80,000 63,000 Hartford-West Hartford-East Hartford, CT -376,000-412,000-61,000 73,000-122,000 17,000-31,000-30,000 Honolulu, HI -183,000 261,000 157,000-5,000 139,000-18,000 41,000 48,000 Houston, TX 2,111,000-621,000 1,214,000 401,000-429,000 213,000 1,028,000 710,000 Indianapolis, IN 246,000-652,000-376,000-28,000-276,000-151,000 79,000-98,000 Jacksonville, FL -257,000-585,000 22,000-143,000 171,000-243,000 237,000 302,000 Kansas City, MO-KS 337,000-445,000-537,000-129,000-38,000-129,000-241,000-44,000 Knoxville, TN 164,000-204,000 286,000-16,000 234,000 51,000 17,000-27,000 Las Vegas-Paradise, NV -66,000-941,000-721,000-80,000-237,000-376,000-29,000 486,000 Lexington-Fayette,KY -144,000 15,000-48,000-27,000-49,000 25,000 3,000-3,000 Little Rock-N. Little Rock, AR -101,000-142,000 36,000-15,000-36,000 65,000 21,000 19,000 Los Angeles-Long Beach-Glendale, CA -3,362,000-4,514,000-2,585,000-1,235,000-538,000-470,000-342,000 3,000 Louisville, KY-IN -21,000-364,000 238,000-184,000 148,000 96,000 179,000 243,000 Madison, WI 153,000 44,000-226,000-1,000-231,000 44,000-37,000-105,000 Memphis, TN-MS-AR -58,000-289,000-12,000-193,000 143,000 11,000 28,000 38,000 Miami-Dade, FL -535,000-796,000 754,000-78,000 282,000 419,000 131,000-179,000 Milwaukee-Waukesha-West Allis, WI -337,000-597,000-262,000 8,000-37,000 6,000-239,000 71,000 Minneapolis-St. Paul-Bloomington, MN-WI -631,000-1,799,000 750,000-182,000 26,000 332,000 573,000 608,000 Nashville-Davidson-Murfreesboro, TN 1,243,000 112,000 997,000-36,000 486,000 351,000 197,000 142,000 New Haven-Milford, CT -261,000-1,488,000 244,000 6,000 144,000 70,000 23,000 26,000 cassidyturley.com 7

Net Absorption 2008 2009 2010 2010 1Q 2010 2Q 2010 3Q 2010 4Qr 2011 1Qp New Orleans-Metairie-Kenner, LA -608,000 312,000-558,000-89,000-112,000 29,000-386,000 252,000 New York, NY -13,792,000-10,871,000 9,564,000 2,491,000 3,418,000 1,706,000 1,949,000-1,543,000 Long Island, NY 694,000 733,000 87,000-204,000 58,000 191,000 42,000 378,000 Northern New Jersey -1,143,000-1,078,000-675,000 75,000 133,000-675,000-207,000 128,000 Central New Jersey -717,000-657,000-38,000-39,000-154,000 146,000 9,000-619,000 Oakland-East Bay, CA -715,000-2,977,000-658,000 186,000-102,000 793,000-1,534,000-936,000 Oklahoma City, OK -189,000 126,000 1,000-65,000-112,000 185,000-7,000 103,000 Omaha, NE-IA -147,000-154,000 225,000 36,000 141,000-120,000 168,000 239,000 Orlando, FL -235,000-1,242,000 311,000-137,000 63,000-37,000 422,000 346,000 West Palm Beach-Boca Raton, FL 381,000-810,000 137,000-57,000-89,000 106,000 177,000 280,000 Philadelphia-Camden-Wilmington, PA-NJ -160,000-1,160,000-562,000-432,000-245,000 173,000-59,000 523,000 Phoenix-Mesa-Scottsdale, AZ -1,072,000-610,000-52,000-66,000 183,000-69,000-100,000-92,000 Pittsburgh, PA 783,000 322,000 221,000 89,000-119,000 91,000 161,000 152,000 Portland-South Portland-Biddeford, ME 194,000 8,000-364,000-55,000 35,000 33,000-378,000-43,000 Portland-Vancouver-Beaverton, OR-WA -655,000-1,158,000-173,000-214,000-133,000 37,000 137,000 385,000 Raleigh-Durham, NC 1,381,000-538,000 222,000-185,000 211,000-102,000 177,000 100,000 Rochester, NY -44,000-87,000-49,000-87,000 87,000-81,000 32,000 115,000 Sacramento-Arden-Arcade-Roseville, CA 271,000 167,000-370,000-128,000-166,000-46,000-30,000-354,000 Saint Louis, MO-IL 599,000-210,000 68,000-56,000-77,000 135,000 67,000 49,000 Salt Lake City, UT -1,000-559,000 781,000 26,000 503,000 273,000-22,000 213,000 San Antonio, TX 476,000 303,000 199,000-99,000 180,000-26,000 143,000 4,000 San Diego-Carlsbad-San Marcos, CA -789,000-476,000 607,000 485,000-193,000 150,000 164,000-324,000 San Francisco, CA -1,306,000-1,900,000 641,000-70,000-254,000 310,000 655,000 462,000 San Jose-Silicon Valley, CA 614,000-5,515,000 2,241,000-580,000 1,513,000-417,000 1,726,000 1,285,000 San Mateo County, CA -1,486,000 342,000 273,000 273,000 184,000 62,000-246,000 1,023,000 Seattle-Tacoma-Bellevue, WA 1,223,000-1,797,000 1,120,000-419,000 717,000 573,000 249,000 1,012,000 Suburban MD -942,000-686,000 107,000-82,000 138,000 253,000-202,000 340,000 Suburban VA 1,279,000-1,713,000 1,720,000 415,000 607,000 514,000 184,000-254,000 Syracuse, NY 44,000-120,000 22,000 79,000-14,000-34,000-9,000 41,000 Tampa-St.Petersburg-Clearwater, FL -1,218,000-2,080,000 456,000-38,000 58,000 465,000-29,000-202,000 Tucson, AZ 187,000-354,000 13,000-15,000-43,000 21,000 51,000-2,000 Tulsa, OK 550,000-73,000-17,000 81,000 150,000-152,000-95,000 246,000 Ventura County, CA -195,000-157,000 26,000 28,000 18,000 70,000-89,000-104,000 Washington DC 755,000 116,000 3,822,000 928,000 960,000 1,402,000 531,000 406,000 Wichita, KS 487,000 547,000-4,000 28,000-113,000 27,000 53,000-30,000 Westchester, NY 53,000-69,000-608,000-261,000-387,000 1,000 39,000-2,000 Methodology explained on page 15 p = preliminary r = revision 8 Cassidy Turley

Offi ce Vacancy Rates 2008 2009 2010 2010 1Q 2010 2Q 2010 3Q 2010 4Qr 2011 1Qp (Quarterly Average) United States 13.9% 16.0% 16.8% 16.8% 16.9% 16.9% 16.8% 16.5% Northeast 13.4% 14.7% 15.4% 15.4% 15.5% 15.5% 15.5% 15.4% Midwest 16.0% 18.0% 19.5% 18.9% 19.5% 19.7% 19.7% 19.6% South 13.5% 15.5% 16.3% 16.4% 16.4% 16.3% 16.0% 15.8% West 13.6% 16.3% 17.0% 17.1% 17.1% 16.9% 16.8% 16.5% Albuquerque, NM 11.5% 13.5% 14.4% 14.1% 14.7% 14.5% 14.3% 13.1% Anaheim-Santa Ana, CA 12.5% 16.9% 18.6% 18.2% 19.5% 18.3% 18.3% 18.2% Atlanta-Sandy Springs-Marietta, GA 15.5% 17.5% 18.5% 18.5% 18.6% 18.6% 18.4% 18.8% Austin-Round Rock, TX 15.9% 18.9% 18.1% 19.1% 18.3% 17.8% 17.4% 17.3% Baltimore, MD 17.3% 18.8% 19.7% 20.3% 19.4% 19.7% 19.3% 19.2% Birmingham-Hoover, AL 9.7% 10.6% 12.4% 12.3% 12.2% 12.5% 12.5% 11.8% Boston-Cambridge, MA 11.3% 13.2% 13.7% 13.9% 13.8% 13.7% 13.5% 13.8% Buffalo-Niagara Falls, NY 12.1% 12.6% 13.5% N/A 13.5% 13.5% 13.4% 13.5% Charleston-North Charleston, SC 13.8% 16.0% 14.6% 15.6% 14.5% 14.7% 13.4% 11.3% Charlotte-Gastonia-Concord, NC-SC 11.5% 13.8% 14.5% 14.4% 15.0% 14.4% 14.1% 13.8% Chattanooga, TN-GA 13.4% 15.3% 17.9% 18.4% 17.9% 18.3% 17.0% 16.0% Chicago-Joliet-Naperville, IL-IN-WI 15.3% 17.0% 17.8% 17.7% 17.6% 17.8% 18.0% 18.2% Cincinnati-Middletown, OH-KY-IN 18.9% 19.5% 22.9% 21.0% 23.2% 23.6% 23.8% 23.5% Cleveland-Elyria-Mentor, OH 17.2% 17.7% 19.0% 18.6% 18.5% 19.4% 19.6% 20.4% Colorado Springs, CO 16.9% 18.9% 16.6% 17.8% 17.4% 16.8% 14.4% 11.5% Columbia, SC 14.1% 14.5% 16.3% 16.3% 16.7% 16.0% 16.0% 15.7% Columbus, OH 14.6% 16.1% 18.7% 18.0% 18.2% 19.3% 19.3% 19.7% Dallas, TX 21.0% 21.4% 22.9% 22.8% 23.4% 23.0% 22.6% 22.1% Dayton, OH 20.8% 24.2% 28.0% 27.2% 28.3% 28.3% 28.3% 28.3% Denver-Aurora, CO 13.7% 14.6% 14.3% 14.2% 14.3% 14.5% 14.2% 13.8% Detroit-Warren-Livonia, MI 21.9% 24.1% 25.1% 24.9% 24.9% 25.3% 25.3% 25.5% Fairfield, CT 15.3% 19.1% 21.3% 20.4% 21.5% 21.9% 21.3% 20.9% Ft. Lauderdale, FL 12.5% 16.6% 18.2% 18.2% 17.8% 18.4% 18.4% 18.1% Greensboro-Winston-Salem, NC 18.5% 18.4% 18.8% 18.5% 18.9% 19.0% 18.9% 18.9% Greenville, SC 17.3% 18.2% 19.4% 18.7% 19.2% 20.5% 19.4% 18.7% Hartford-West Hartford-East Hartford, CT 16.9% 19.3% 21.7% 21.0% 21.4% 22.2% 22.3% 22.4% Honolulu, HI 6.3% 7.3% 7.1% 6.9% 7.2% 7.2% 7.2% 7.0% Houston, TX 12.8% 15.0% 15.4% 15.4% 15.6% 15.6% 15.1% 15.1% Indianapolis, IN 18.2% 19.9% 21.0% 20.7% 21.8% 21.3% 20.3% 20.7% Jacksonville, FL 15.9% 19.0% 19.8% 19.9% 19.7% 20.2% 19.3% 18.0% Kansas City, MO-KS 17.1% 19.7% 21.4% 20.8% 21.0% 21.3% 22.3% 22.8% Knoxville, TN 12.9% 15.5% 16.6% 16.7% 16.8% 17.0% 15.8% 17.1% Las Vegas-Paradise, NV 16.6% 21.4% 23.9% 23.4% 23.7% 24.1% 24.3% 22.4% Lexington-Fayette,KY 16.1% 16.5% 16.9% 16.3% 16.8% 16.5% 18.1% 18.2% Little Rock-N. Little Rock, AR 9.6% 11.1% 12.1% 12.2% 12.3% 12.0% 11.9% 11.7% Los Angeles-Long Beach-Glendale, CA 9.7% 12.2% 13.7% 13.3% 13.5% 13.9% 14.1% 14.1% Louisville, KY-IN 12.8% 13.8% 15.0% 14.7% 14.7% 15.0% 15.7% 14.3% Madison, WI 8.3% 8.7% 9.4% 8.6% 9.7% 9.6% 9.8% 10.3% Memphis, TN-MS-AR 15.7% 18.2% 19.0% 19.3% 18.9% 18.9% 19.0% 19.1% Miami-Dade, FL 10.2% 13.4% 14.3% 14.2% 14.6% 14.3% 14.1% 14.5% Milwaukee-Waukesha-West Allis, WI 14.4% 19.4% 20.9% 19.7% 20.6% 21.0% 22.1% 21.4% Minneapolis-St. Paul-Bloomington, MN-WI 17.5% 19.5% 20.0% 20.4% 20.4% 20.0% 19.2% 18.4% Nashville-Davidson-Murfreesboro, TN 11.2% 14.0% 14.2% 15.3% 14.4% 13.9% 13.1% 12.6% cassidyturley.com 9

Offi ce Vacancy Rates 2008 2009 2010 2010 1Q 2010 2Q 2010 3Q 2010 4Qr 2011 1Qp (Quarterly Average) New Haven-Milford, CT 14.2% 16.3% 16.6% 16.8% 16.9% 16.4% 16.2% 16.0% New Orleans-Metairie-Kenner, LA 7.2% 8.5% 9.1% 8.5% 9.1% 8.9% 10.0% 10.1% New York, NY 10.4% 13.5% 12.0% 13.5% 12.8% 12.4% 12.0% 12.3% Long Island, NY 14.2% 16.4% 16.7% 16.6% 16.8% 16.8% 16.7% 16.2% Northern New Jersey 12.2% 12.9% 13.2% 13.0% 12.9% 13.4% 13.5% 13.4% Central New Jersey 15.0% 15.9% 16.1% 16.1% 16.2% 16.0% 16.0% 16.6% Oakland-East Bay, CA 14.9% 18.2% 19.0% 18.6% 18.7% 18.6% 20.0% 20.5% Oklahoma City, OK 14.8% 15.7% 16.6% 16.6% 17.0% 16.0% 16.9% 16.9% Omaha, NE-IA 12.7% 14.8% 15.6% 15.7% 15.6% 16.0% 15.1% 13.8% Orlando, FL 11.5% 15.3% 16.5% 16.4% 16.9% 16.9% 15.6% 14.9% West Palm Beach-Boca Raton, FL 14.1% 17.6% 18.4% 18.9% 19.0% 18.5% 17.3% 16.4% Philadelphia-Camden-Wilmington, PA-NJ 11.8% 12.9% 13.9% 13.9% 14.0% 13.9% 14.0% 13.5% Phoenix-Mesa-Scottsdale, AZ 20.9% 25.8% 27.7% 27.3% 27.6% 27.9% 28.0% 28.3% Pittsburgh, PA 15.4% 15.4% 15.5% 15.3% 15.7% 15.6% 15.5% 15.2% Portland-South Portland-Biddeford, ME 8.0% 8.1% 9.2% 9.2% 9.0% 8.2% 10.6% 10.8% Portland-Vancouver-Beaverton, OR-WA 11.0% 13.3% 14.3% 14.4% 14.5% 14.3% 14.0% 13.2% Raleigh-Durham, NC 15.0% 18.7% 19.2% 19.2% 19.2% 19.7% 19.2% 19.0% Rochester, NY 15.6% 15.8% 16.1% 15.9% 16.1% 16.3% 15.9% 15.2% Sacramento-Arden-Arcade-Roseville, CA 13.6% 15.5% 16.5% 16.1% 16.5% 16.5% 16.7% 17.2% Saint Louis, MO-IL 12.5% 13.4% 14.6% 14.3% 14.4% 14.8% 14.8% 14.4% Salt Lake City, UT 11.8% 12.8% 14.4% 15.6% 14.5% 13.7% 13.9% 13.3% San Antonio, TX 13.6% 16.6% 17.2% 17.5% 17.0% 17.0% 17.2% 18.1% San Diego-Carlsbad-San Marcos, CA 18.2% 21.1% 19.9% 20.4% 20.3% 19.5% 19.4% 19.8% San Francisco, CA 11.8% 15.0% 15.3% 15.6% 15.7% 15.3% 14.5% 13.9% San Jose-Silicon Valley, CA 14.5% 18.1% 18.3% 18.8% 18.3% 18.5% 17.6% 17.1% San Mateo County, CA 14.3% 18.2% 16.3% 18.3% 15.6% 15.4% 15.7% 14.1% Seattle-Tacoma-Bellevue, WA 9.6% 14.2% 16.9% 17.2% 17.0% 16.8% 16.7% 16.4% Suburban MD 12.5% 14.5% 15.2% 15.4% 15.2% 14.8% 15.2% 15.5% Suburban VA 12.0% 14.0% 14.3% 14.7% 14.3% 14.0% 14.0% 14.1% Syracuse, NY 11.9% 13.0% 13.1% 12.6% 13.0% 13.3% 13.6% 13.3% Tampa-St.Petersburg-Clearwater, FL 14.1% 14.5% 14.7% 15.2% 15.1% 14.3% 14.4% 14.9% Tucson, AZ 11.5% 13.5% 14.2% 14.1% 14.3% 14.4% 14.2% 14.2% Tulsa, OK 17.8% 17.4% 17.6% 17.5% 17.1% 17.6% 18.1% 16.8% Ventura County, CA 12.9% 17.3% 17.5% 17.6% 17.6% 16.8% 18.1% 19.3% Washington DC 7.8% 10.0% 11.1% 11.5% 11.7% 10.8% 10.5% 10.3% Wichita, KS 15.9% 17.5% 17.7% 17.4% 18.4% 17.9% 17.2% 17.4% Westchester, NY 16.4% 16.4% 18.1% 17.5% 18.3% 18.3% 18.2% 18.3% Methodology explained on page 15 p = preliminary r = revisions * Vacancy = Direct + Sublet 10 Cassidy Turley

Asking Rents 2008 2009 2010 2010 1Q 2010 2Q 2010 3Q 2010 4Qr 2011 1Qp (Quarterly Average) United States $22.52 $21.85 $21.36 $21.57 $21.41 $21.31 $21.31 $21.36 Northeast $25.06 $24.04 $23.20 $23.48 $23.32 $23.28 $23.36 $23.52 Midwest $18.61 $18.60 $18.43 $18.49 $18.45 $18.37 $18.40 $18.26 South $21.16 $20.94 $20.79 $20.88 $20.80 $20.71 $20.68 $20.65 West $25.47 $23.92 $22.95 $23.10 $23.01 $22.85 $22.84 $23.02 Albuquerque, NM $16.44 $16.42 $16.12 $16.14 $16.27 $16.15 $15.94 $15.82 Anaheim-Santa Ana, CA $29.59 $26.32 $23.68 $24.83 $23.98 $23.13 $22.77 $22.79 Atlanta-Sandy Springs-Marietta, GA $20.90 $20.32 $19.97 $20.10 $20.03 $19.96 $19.78 $19.74 Austin-Round Rock, TX $25.83 $25.24 $24.81 $25.18 $24.87 $24.56 $24.62 $24.12 Baltimore, MD $23.36 $22.97 $22.66 $22.38 $22.86 $22.77 $22.61 $22.53 Birmingham-Hoover, AL $17.86 $17.93 $17.67 $17.75 $17.72 $17.69 $17.53 $17.69 Boston-Cambridge, MA $31.84 $30.08 $28.25 $27.76 $28.27 $28.78 $28.19 $29.02 Buffalo-Niagara Falls, NY $15.60 $15.79 $16.38 $16.22 $16.33 $16.44 $16.54 $16.69 Charleston-North Charleston, SC $19.52 $19.10 $19.25 $19.34 $19.25 $19.16 $19.25 $19.10 Charlotte-Gastonia-Concord, NC-SC $19.90 $19.78 $19.02 $19.48 $19.16 $18.76 $18.67 $18.65 Chattanooga, TN-GA $14.71 $14.73 $14.22 $14.19 $14.26 $14.33 $14.09 $13.59 Chicago-Joliet-Naperville, IL-IN-WI $25.84 $25.18 $24.64 $24.84 $24.70 $24.56 $24.43 $24.40 Cincinnati-Middletown, OH-KY-IN $17.57 $18.00 $17.88 $17.80 $17.82 $17.79 $18.09 $16.67 Cleveland-Elyria-Mentor, OH $17.65 $17.80 $18.17 $18.03 $18.19 $18.35 $18.12 $18.04 Colorado Springs, CO $16.95 $16.47 $15.49 $15.28 $15.35 $15.42 $15.90 $15.84 Columbia, SC $15.42 $15.69 $15.88 $16.05 $15.89 $15.73 $15.84 $15.68 Columbus, OH $18.79 $18.70 $17.73 $18.48 $17.54 $17.56 $17.32 $17.31 Dallas, TX $20.94 $21.32 $19.78 $20.16 $20.07 $19.47 $19.41 $19.80 Dayton, OH $15.37 $14.96 $14.75 $14.87 $14.86 $14.74 $14.53 $14.53 Denver-Aurora, CO $21.05 $20.67 $19.92 $19.98 $19.96 $19.97 $19.77 $20.24 Detroit-Warren-Livonia, MI $19.48 $18.92 $18.68 $18.71 $18.72 $18.73 $18.58 $18.46 Fairfield, CT $32.17 $31.58 $29.84 $29.95 $29.18 $29.74 $30.49 $29.93 Ft. Lauderdale, FL $26.33 $25.33 $24.88 $25.24 $24.98 $24.72 $24.59 $24.82 Greensboro-Winston-Salem, NC $15.31 $15.39 $15.31 $15.24 $15.24 $15.24 $15.55 $15.46 Greenville, SC $15.55 $15.97 $16.07 $16.66 $16.18 $15.70 $15.75 $15.97 Hartford-West Hartford-East Hartford, CT $19.86 $19.49 $19.09 $19.16 $19.05 $18.94 $19.24 $19.28 Honolulu, HI $21.08 $23.57 $27.19 $25.53 $26.58 $27.63 $29.02 $28.94 Houston, TX $23.55 $23.37 $23.01 $23.22 $23.12 $22.86 $22.82 $22.65 Indianapolis, IN $17.51 $17.59 $17.55 $17.40 $17.75 $17.10 $17.95 $17.98 Jacksonville, FL $18.21 $18.28 $17.69 $18.04 $17.89 $17.74 $17.12 $17.15 Kansas City, MO-KS $19.16 $18.79 $18.38 $18.53 $18.44 $18.40 $18.15 $18.37 Knoxville, TN $15.60 $15.73 $15.92 $16.11 $15.94 $15.77 $15.88 $15.90 Las Vegas-Paradise, NV $25.19 $24.30 $22.68 $22.97 $22.77 $22.57 $22.43 $22.02 Lexington-Fayette,KY $16.40 $16.37 $16.74 $16.94 $16.82 $16.70 $16.50 $16.14 Little Rock-N. Little Rock, AR $14.76 $14.59 $15.05 $15.03 $15.05 $15.07 $15.05 $15.51 Los Angeles-Long Beach-Glendale, CA $32.92 $31.11 $29.41 $29.80 $29.51 $29.22 $29.12 $29.09 Louisville, KY-IN $16.06 $15.84 $16.90 $16.16 $16.93 $17.54 $16.97 $17.21 Madison, WI $15.85 $16.15 $16.70 $16.56 $16.61 $16.66 $16.97 $17.08 Memphis, TN-MS-AR $17.63 $17.54 $18.95 $19.11 $18.96 $18.81 $18.89 $18.78 Miami-Dade, FL $30.82 $29.56 $28.55 $29.09 $28.78 $28.47 $27.86 $27.70 Milwaukee-Waukesha-West Allis, WI $21.70 $20.66 $20.24 $20.22 $20.25 $20.25 $20.25 $20.00 Minneapolis-St. Paul-Bloomington, MN-WI $23.07 $24.60 $24.60 $24.34 $24.57 $24.92 $24.55 $24.55 Nashville-Davidson-Murfreesboro, TN $19.64 $20.29 $20.24 $20.39 $20.03 $20.10 $20.45 $20.34 cassidyturley.com 11

Asking Rents 2008 2009 2010 2010 1Q 2010 2Q 2010 3Q 2010 4Qr 2011 1Qp (Quarterly Average) New Haven-Milford, CT $20.34 $20.50 $20.38 $20.70 $20.43 $20.16 $20.22 $20.28 New Orleans-Metairie-Kenner, LA $15.95 $15.22 $15.39 $15.79 $15.51 $15.23 $15.01 $14.94 New York, NY $60.33 $51.10 $47.66 $50.41 $50.19 $49.56 $49.93 $50.66 Long Island, NY $27.17 $26.44 $26.26 $26.15 $26.41 $26.38 $26.09 $25.93 Northern New Jersey $27.33 $26.45 $25.43 $25.56 $25.33 $25.31 $25.50 $25.52 Central New Jersey $25.26 $24.10 $23.46 $23.74 $23.53 $23.31 $23.27 $23.64 Oakland-East Bay, CA $23.31 $21.69 $20.73 $21.24 $20.88 $20.76 $20.04 $20.28 Oklahoma City, OK $14.02 $13.96 $13.67 $13.84 $13.69 $13.54 $13.61 $13.58 Omaha, NE-IA $16.13 $16.74 $17.01 $16.91 $16.92 $16.93 $17.27 $17.26 Orlando, FL $21.99 $21.31 $20.20 $20.33 $20.23 $20.13 $20.11 $19.84 West Palm Beach-Boca Raton, FL $29.00 $28.28 $27.73 $28.05 $27.89 $27.73 $27.26 $27.30 Philadelphia-Camden-Wilmington, PA-NJ $23.49 $23.44 $22.99 $23.23 $23.05 $22.87 $22.79 $22.84 Phoenix-Mesa-Scottsdale, AZ $26.07 $23.80 $22.71 $23.16 $23.03 $22.70 $21.93 $21.62 Pittsburgh, PA $19.24 $19.34 $19.49 $19.53 $19.49 $19.45 $19.51 $19.44 Portland-South Portland-Biddeford, ME $14.34 $14.53 $14.50 $14.80 $14.49 $14.18 $14.54 $14.50 Portland-Vancouver-Beaverton, OR-WA $21.09 $20.84 $20.61 $20.55 $20.58 $20.61 $20.68 $20.63 Raleigh-Durham, NC $19.95 $19.70 $19.60 $18.70 $18.70 $18.50 $19.63 $19.60 Rochester, NY $15.04 $14.81 $14.08 $14.02 $14.12 $14.22 $13.97 $14.05 Sacramento-Arden-Arcade-Roseville, CA $23.77 $22.46 $21.44 $21.84 $21.56 $21.24 $21.12 $20.92 Saint Louis, MO-IL $19.38 $19.46 $19.25 $19.45 $19.44 $19.05 $19.07 $19.00 Salt Lake City, UT $18.15 $18.08 $17.76 $18.00 $17.82 $17.64 $17.58 $17.69 San Antonio, TX $18.97 $18.98 $19.05 $18.99 $18.98 $18.97 $19.28 $19.36 San Diego-Carlsbad-San Marcos, CA $32.85 $30.09 $27.57 $28.08 $27.72 $27.24 $27.24 $27.36 San Francisco, CA $41.42 $34.66 $31.31 $30.72 $30.83 $31.46 $32.24 $32.30 San Jose-Silicon Valley, CA $28.50 $26.49 $24.79 $25.09 $24.68 $24.55 $24.86 $24.97 San Mateo County, CA $40.32 $33.00 $30.81 $31.68 $31.80 $30.00 $29.76 $34.44 Seattle-Tacoma-Bellevue, WA $30.27 $28.54 $27.24 $27.40 $27.27 $27.14 $27.16 $26.91 Suburban MD $27.15 $27.46 $26.61 $26.66 $26.52 $26.86 $26.39 $26.38 Suburban VA $31.24 $29.74 $29.59 $29.30 $29.64 $29.57 $29.85 $29.98 Syracuse, NY $14.74 $14.58 $14.18 $14.16 $14.16 $14.16 $14.24 $14.29 Tampa-St.Petersburg-Clearwater, FL $21.48 $21.14 $20.58 $20.67 $20.61 $20.55 $20.52 $20.27 Tucson, AZ $21.11 $20.92 $20.17 $20.28 $20.18 $20.08 $20.11 $19.88 Tulsa, OK $14.49 $14.63 $15.77 N/A $15.63 $15.93 $15.76 $15.80 Ventura County, CA $26.23 $24.69 $24.16 $24.31 $24.22 $24.13 $23.99 $23.88 Washington DC $47.60 $47.54 $48.70 $48.22 $48.39 $48.96 $49.22 $49.39 Wichita, KS $12.11 $12.11 $12.16 $12.27 $12.22 $12.17 $11.99 $11.74 Westchester, NY $29.18 $28.36 $26.04 $26.83 $25.71 $25.75 $25.85 $26.71 Methodology explained on page 15 p = preliminary 12 Cassidy Turley

Inventory Inventory Vacant Stock Inventory Change (YTD 2011) U/C (as of 2011Q1) National Total 4,963,450,000 808,312,000 6,441,000 33,868,000 Albuquerque, NM 13,219,000 1,726,000 18,000 287,000 Anaheim-Santa Ana, CA 82,385,000 15,025,000 0 312,000 Atlanta-Sandy Springs-Marietta, GA 141,763,000 26,657,000 101,000 85,000 Austin-Round Rock, TX 40,353,000 6,995,000 0 270,000 Baltimore, MD 71,383,000 13,705,000 192,000 1,335,000 Birmingham-Hoover, AL 18,292,000 2,164,000 0 16,000 Boston-Cambridge, MA 125,574,000 17,301,000 759,000 305,000 Buffalo-Niagara Falls, NY 20,565,000 2,766,000 0 0 Charleston-North Charleston, SC 7,620,000 865,000 0 125,000 Charlotte-Gastonia-Concord, NC-SC 92,314,000 12,739,000 0 314,000 Chattanooga, TN-GA 4,806,000 767,000 0 0 Chicago-Joliet-Naperville, IL-IN-WI 243,909,000 44,316,000 48,000 843,000 Cincinnati-Middletown, OH-KY-IN 32,247,000 7,575,000 52,000 1,095,000 Cleveland-Elyria-Mentor, OH 35,000,000 7,137,000 0 1,171,000 Colorado Springs, CO 14,892,000 1,712,000 0 72,000 Columbia, SC 10,750,000 1,693,000 0 0 Columbus, OH 26,610,000 5,240,000 0 0 Dallas, TX 207,226,000 45,869,000 78,000 408,000 Dayton, OH 13,898,000 3,937,000 0 161,000 Denver-Aurora, CO 167,208,000 23,075,000 371,000 0 Detroit-Warren-Livonia, MI 75,315,000 19,232,000 27,000 0 Fairfield, CT 58,706,000 12,270,000 400,000 75,000 Ft. Lauderdale, FL 27,021,000 4,882,000 0 0 Greensboro-Winston-Salem, NC 17,855,000 3,372,000 18,000 0 Greenville, SC 8,843,000 1,650,000 0 0 Hartford-West Hartford-East Hartford, CT 24,540,000 5,494,000 0 66,000 Honolulu, HI 25,584,000 1,783,000 0 0 Houston, TX 222,691,000 33,638,000 1,152,000 1,375,000 Indianapolis, IN 31,967,000 6,617,000 0 0 Jacksonville, FL 24,820,000 4,476,000 0 0 Kansas City, MO-KS 47,732,000 10,883,000 247,000 369,000 Knoxville, TN 6,982,000 1,191,000 72,000 0 Las Vegas-Paradise, NV 25,802,000 5,773,000 0 1,848,000 Lexington-Fayette,KY 4,290,000 781,000 0 202,000 Little Rock-N. Little Rock, AR 10,253,000 1,195,000 0 0 Los Angeles-Long Beach-Glendale, CA 195,379,000 27,491,000 0 80,000 Louisville, KY-IN 21,645,000 3,095,000 0 150,000 Madison, WI 21,922,000 2,262,000 0 0 Memphis, TN-MS-AR 19,504,000 3,724,000 70,000 0 Miami-Dade, FL 42,130,000 6,101,000 0 1,268,000 Milwaukee-Waukesha-West Allis, WI 28,311,000 6,059,000 0 0 Minneapolis-St. Paul-Bloomington, MN-WI 71,298,000 13,119,000 0 1,362,000 Nashville-Davidson-Murfreesboro, TN 33,375,000 4,219,000 0 128,000 New Haven-Milford, CT 11,842,000 1,897,000 0 288,000 New Orleans-Metairie-Kenner, LA 35,839,000 3,623,000 336,000 11,000 New York, NY 449,992,000 55,349,000 0 8,148,000 Long Island, NY 71,204,000 11,535,000 0 0 Northern New Jersey 149,120,000 19,982,000 0 0 Central New Jersey 104,578,000 17,360,000 26,000 0 cassidyturley.com 13

Inventory Inventory Vacant Stock Inventory Change (YTD 2011) U/C (as of 2011Q1) Oakland-East Bay, CA 109,633,000 22,475,000 0 90,000 Oklahoma City, OK 17,601,000 2,972,000 126,000 1,964,000 Omaha, NE-IA 17,625,000 2,434,000 15,000 85,000 Orlando, FL 32,684,000 4,857,000 105,000 402,000 West Palm Beach-Boca Raton, FL 24,040,000 3,948,000 73,000 134,000 Philadelphia-Camden-Wilmington, PA-NJ 111,985,000 15,141,000 15,000 810,000 Phoenix-Mesa-Scottsdale, AZ 67,569,000 19,122,000 0 439,000 Pittsburgh, PA 49,435,000 7,526,000 0 63,000 Portland-South Portland-Biddeford, ME 17,816,000 1,924,000 0 0 Portland-Vancouver-Beaverton, OR-WA 41,088,000 5,424,000 63,000 223,000 Raleigh-Durham, NC 46,671,000 8,867,000 0 0 Rochester, NY 15,446,000 2,341,000 0 80,000 Sacramento-Arden-Arcade-Roseville, CA 83,638,000 14,386,000 80,000 0 Saint Louis, MO-IL 50,615,000 7,306,000 (140,000) 272,000 Salt Lake City, UT 30,122,000 4,014,000 60,000 1,227,000 San Antonio, TX 28,546,000 5,159,000 302,000 390,000 San Diego-Carlsbad-San Marcos, CA 72,892,000 14,404,000 11,000 100,000 San Francisco, CA 84,418,000 11,734,000 0 0 San Jose-Silicon Valley, CA 198,555,000 34,017,000 165,000 190,000 San Mateo County, CA 49,624,000 6,997,000 0 0 Seattle-Tacoma-Bellevue, WA 83,124,000 13,657,000 974,000 1,320,000 Suburban MD 72,058,000 11,169,000 0 937,000 Suburban VA 152,876,000 21,556,000 144,000 1,160,000 Syracuse, NY 12,649,000 1,681,000 0 0 Tampa-St.Petersburg-Clearwater, FL 41,236,000 6,145,000 0 186,000 Tucson, AZ 5,936,000 843,000 48,000 268,000 Tulsa, OK 20,224,000 3,404,000 0 69,000 Ventura County, CA 8,370,000 1,619,000 0 117,000 Washington DC 122,246,000 12,714,000 433,000 1,173,000 Wichita, KS 13,739,000 2,393,000 0 0 Westchester, NY 42,435,000 7,766,000 0 0 Methodology explained on page 15 p = preliminary ** Reis Services, LLC 2010 4Q Reprinted with the permission of Reis Services, LLC All rights reserved. 14 Cassidy Turley

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 430 million square feet of managed space and $17 billion in completed transactions for 2010. Methodology Cassidy Turley s quarterly estimates are derived from a variety of data sources, including its own proprietary sample of market activity, historical and current inventory data from Reis LLC, Bureau of Labor Statistics Employment data, 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. 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. (Total Unoccupied Space divided by Total Inventory.) Absorption: The net change in occupied space between two points in time. (Total occupied space in the previous quarter minus total occupied space in the present quarter, quoted on a net, not gross, basis.) Effective Rents: Gross average asking rents - average concessions. Regional Map West Midwest South Northeast cassidyturley.com 15

Key Statistics 60 offi ces 72 international offi ces* 3,000 associates 940 brokers 2010 transactions Gross transaction volume $17 billion Gross capital markets volume $6.7 billion 430 million sf managed portfolio 25,700 domestic client locations served *Through GVA Grimley Partnership We are Cassidy Turley One of the nation s largest commercial real estate services fi rms, Cassidy Turley enjoys a history of 100 years of successful client relationships. Our team of professionals is dedicated to consistently delivering integrated, tailored solutions that produce superior results and champion your business goals. We become your partner and advocate, and are passionate about achieving long-term success on your behalf. Real Market Knowledge In every market where we do business, we have in-depth, local market knowledge that enables us to advocate effectively for our clients. Many of our associates have honed their skills in their respective markets for years, and even decades. Real Connections Our professionals have deep ties to our communities and our industry, which gives Cassidy Turley a competitive advantage when it comes to really understanding what the market is doing and more importantly where it is heading. In order to better serve our clients needs in EMEA and Asia Pacifi c, Cassidy Turley is proud to partner with GVA Grimley, a respected market leader in its geographies. Real Passion In a partnership with Cassidy Turley, you gain a champion who will be as focused on advocating your goals as you are. We believe in long-term, person-to-person relationships and an unwavering commitment to our clients success. Real Results We believe that hands-on problem solving is fundamental, and we are committed to delivering integrated, tailored solutions that provide maximum, measurable outcomes. You can depend on us for world-class expertise, service and execution, wherever you do business. cassidyturley.com