Baltimore • Boston • Charlotte • Hartford • New York City • Norfolk Northern New Jersey • Philadelphia • Pittsburgh • Raleigh • Richmond • Washington, D.C

East Region

Baltimore • Boston • Charlotte • Hartford • New York City • Norfolk Northern New Jersey • Philadelphia • Pittsburgh • Raleigh • Richmond • Washington, D.C. EastRegionTransactionBreakdown

n CCIM Institute designees and candidates rated the eco- n The total dollar volume of commercial real estate trans- nomic performance in the East region at 5.8 on a scale of actions in the East region decreased during first quarter 1 to 10, with 10 being high, for first quarter 2008. While this 2008 for all property types. is lower than last quarter’s rating of 6.5 for the East region, each of the four regions received similar ratings during first n The weighted average capitalization rate declined by 10 quarter 2008 with only minor variations. The majority of basis points in first quarter 2008 in the East regional in- survey respondents from the East region believe the East dustrial, retail, and apartment sectors. This rate remained regional economy will continue to perform at its current unchanged from the previous quarter for the office sector, level in the near term. and increased 50 basis points for the hotel sector.

Regional Transaction Price Breakdown/Tiers East Transaction Breakdown (4/1/07 - 3/31/08) Office Industrial Retail Apartment Hotel < $2 Million “Vacancies have Volume (Mil) $616 $983 $1,230 $502 $21 increased slightly in Size Weighted Avg. ($ per sf/unit) $86 $48 $89 $58,268 $24,774 the commercial sectors, Price Weighted Avg. ($ per sf/unit) $120 $77 $128 $74,990 $29,028 and the delivery of new Median ($ per sf/unit) $88 $53 $88 $60,742 $27,767 construction continues $2 - $5 Million at too fast a pace.” Volume (Mil) $1,304 $1,819 $2,045 $1,992 $260 –Norfolk Size Weighted Avg. ($ per sf/unit) $117 $56 $145 $85,420 $33,503 Price Weighted Avg. ($ per sf/unit) $183 $102 $262 $133,911 $47,304 Median ($ per sf/unit) $145 $73 $229 $97,832 $34,091 > $5 Million “Apartment value Volume (Mil) $65,321 $11,264 $13,423 $23,910 $14,539 is expected to rise.” Size Weighted Avg. ($ per sf/unit) $327 $71 $175 $134,165 $178,485 –Northern New Jersey Price Weighted Avg. ($ per sf/unit) $534 $142 $300 $235,926 $284,906 Median ($ per sf/unit) $224 $78 $191 $116,182 $119,816 All Transactions Volume (Mil) $67,241 $14,065 $16,698 $26,404 $14,820 Size Weighted Avg. ($ per sf/unit) $309 $66 $160 $125,647 $164,534 “The hotel and Price Weighted Avg. ($ per sf/unit) $524 $132 $282 $225,173 $280,371 office sectors and Median ($ per sf/unit) $148 $64 $128 $97,222 $108,534 the heavy industrial Capitalization Rates (All Transactions) areas are presenting Range (%) 3.0 - 12.6 3.7 - 10.3 4.6 - 9.5 2.6 - 8.7 4.1 - 10.8 weak investment Weighted Avg. (%) 5.3 6.8 6.5 5.5 7.9 opportunities.” Median (%) 6.6 7.5 6.7 5.7 8.5 –Washington, D.C. Source: RERC.

RERC Weighted Avg. Cap Rate - 1Q 2008 8.5% East U.S. Total Avg. Capitalization Rate 7.5% n The total dollar volume of office transactions in the East region during first quarter 2008 was about 40 percent less 6.5% than that for fourth quarter 2007.

n 5.5% The first quarter 2008 size- and price-weighted average prices per square foot were up slightly for properties that sold in the less than $2 million and the $2 to $5 million vol- 4.5% ume categories, but were down slightly for the more than $5 million and all volume categories as compared to the Baltimore Boston Charlotte New York Northern NJ Philadelphia previous quarter. Washington, D.C.

RERC Size-Weighted Avg. PPSF - 1Q 2008 RERC Price-Weighted Avg. PPSF - 1Q 2008 $600 $1000 East East U.S. Total U.S. Total $500 Size-Weighted Average PPSF $800 Price-Weighted Average PPSF

$400 $600 $300 $400 $200

$200 $100

$0 $0

Boston Baltimore Boston Charlotte Hartford New York Norfolk Raleigh Baltimore Charlotte Hartford New York Norfolk Raleigh Northern NJPhiladelphiaPittsburgh Richmond Northern NJPhiladelphiaPittsburgh Richmond Washington, D.C. Washington, D.C.

East Office Transactions (4/1/07 - 3/31/08) Volume Size-weighted Price-weighted Median Average (millions) Average ($/sf) Average ($/sf) ($/sf) Cap Rate (%) Baltimore $1,257 $191 $262 $145 6.5 Boston $6,888 $275 $394 $155 5.3 Charlotte $1,171 $168 $211 $136 7.8 Hartford $131 $117 $158 $87 – New York $33,781 $554 $719 $384 5.1 Norfolk $239 $153 $195 $139 – Northern NJ $1,746 $148 $195 $145 6.7 Philadelphia $2,206 $141 $168 $131 7.5 Pittsburgh $353 $82 $110 $62 – Raleigh $794 $144 $169 $134 – Richmond $374 $127 $164 $113 – Washington, D.C. $14,440 $365 $420 $312 5.5 East Total $67,241 $309 $524 $148 5.3 U.S. Total $165,414 $240 $396 $152 5.6 Source: RERC.

RERC Weighted Avg. Cap Rate - 1Q 2008 8.5% East U.S. Total Avg. Capitalization Rate 7.5% n The size- and price- weighted average prices for industrial 6.5% properties in the East region increased slightly during first quarter 2008 over last quarter’s rates, while the average 5.5% capitalization rate declined slightly and the median capitalization rate increased 30 basis points. 4.5% n Transaction volume for industrial properties in the East re- 3.5% gion was about 10 percent lower in first quarter 2008 when compared to fourth quarter 2007. Boston Charlotte Northern NJ

RERC Size-Weighted Avg. PPSF - 1Q 2008 RERC Price-Weighted Avg. PPSF - 1Q 2008 $340 $200 East East U.S. Total $300 U.S. Total Price-Weighted Average PPSF $165 Size-Weighted Average PPSF $260

$220 $130 $180

$95 $140

$100 $60 $60

$25 $20

Boston Norfolk Raleigh Baltimore Boston Charlotte Hartford New York Norfolk Raleigh Baltimore Charlotte Hartford New York Pittsburgh Richmond Northern NJPhiladelphiaPittsburgh Richmond Northern NJPhiladelphia Washington, D.C. Washington, D.C.

East Industrial Transactions (4/1/07 - 3/31/08) Volume Size-weighted Price-weighted Median Average (millions) Average ($/sf) Average ($/sf) ($/sf) Cap Rate (%) Baltimore $649 $65 $78 $69 – Boston $1,981 $90 $141 $83 4.8 Charlotte $533 $44 $68 $53 7.4 Hartford $229 $47 $59 $52 – New York $2,439 $177 $326 $139 – Norfolk $178 $64 $87 $64 – Northern NJ $1,076 $72 $98 $93 6.5 Philadelphia $675 $65 $89 $57 – Pittsburgh $157 $34 $46 $44 – Raleigh $406 $64 $75 $66 – Richmond $145 $40 $58 $41 – Washington, D.C. $652 $113 $142 $115 – East Total $14,065 $66 $132 $64 6.8 U.S. Total $51,426 $74 $126 $75 6.7 Source: RERC.

RERC Weighted Avg. Cap Rate - 1Q 2008 7.5% East U.S. Total

Avg. Capitalization Rate 7.0% n The size-weighted average price per square foot for retail space in the East region during first quarter 2008 com-

6.5% pared closely with the size-weighted average price for this sector on a national level. The weighted average capitalization rate for the retail sector in the East region was simi- 6.0% lar to the national average.

5.5% n The dollar volume of retail property transactions in first quarter 2008 was significantly less than previous quarter

Baltimore Boston Charlotte New York Norfolk Raleigh Northern NJ Philadelphia Pittsburgh volume. Washington, D.C.

RERC Size-Weighted Avg. PPSF - 1Q 2008 RERC Price-Weighted Avg. PPSF - 1Q 2008 $350 $550 East East U.S. Total U.S. Total Size-Weighted Average PPSF $450 Price-Weighted Average PPSF $275

$350 $200 $250

$125 $150

$50 $50

Boston Hartford Norfolk Raleigh Baltimore Boston Charlotte Hartford New York Norfolk Raleigh Baltimore Charlotte New York Pittsburgh Richmond Northern NJPhiladelphiaPittsburgh Richmond Northern NJPhiladelphia Washington, D.C. Washington, D.C. East Retail Transactions (4/1/07 - 3/31/08) Volume Size-weighted Price-weighted Median Average (millions) Average ($/sf) Average ($/sf) ($/sf) Cap Rate (%) Baltimore $276 $132 $183 $112 6.2 Boston $1,495 $182 $277 $152 6.0 Charlotte $468 $121 $172 $103 6.9 Hartford $251 $104 $132 $75 – New York $4,192 $318 $520 $236 6.3 Norfolk $253 $166 $220 $134 6.3 Northern NJ $821 $218 $269 $181 6.7 Philadelphia $1,150 $156 $199 $114 6.6 Pittsburgh $156 $131 $230 $113 6.7 Raleigh $469 $154 $190 $158 6.9 Richmond $173 $104 $143 $92 – Washington, D.C. $1,112 $178 $300 $211 6.5 East Total $16,698 $160 $282 $128 6.5 U.S. Total $59,915 $159 $282 $135 6.4 Source: RERC.

RERC Weighted Avg. Cap Rate - 1Q 2008

6.5% East U.S. Total Avg. Capitalization Rate

5.5% n The dollar volume of apartment transactions on both a regional level and a national level decreased during first quarter 2008. However, as expected, the size- and price- 4.5% weighted average prices remain much higher in the East region than the nation as a whole. 3.5% n The first quarter 2008 weighted average and median apart-

2.5% ment capitalization rates in the East region were 30 basis points less than those for the national market.

Charlotte New York Raleigh Philadelphia Washington, D.C.

RERC Size-Weighted Avg. PPU - 1Q 2008 RERC Price-Weighted Avg. PPU - 1Q 2008 $250,000 $350,000 East East U.S. Total U.S. Total $300,000 Price-Weighted Average PPU $200,000 Size-Weighted Average PPU $250,000

$150,000 $200,000

$100,000 $150,000 $100,000 $50,000 $50,000

$0 $0

Baltimore Boston Charlotte Hartford New York Norfolk Raleigh Baltimore Boston Charlotte Hartford New York Norfolk Raleigh Northern NJPhiladelphiaPittsburgh Richmond Northern NJPhiladelphiaPittsburgh Richmond Washington, D.C. Washington, D.C. East Apartment Transactions (4/1/07 - 3/31/08) Volume Size-weighted Price-weighted Median Average (millions) Average ($/unit) Average ($/unit) ($/sf) Cap Rate (%) Baltimore $823 $123,408 $183,350 $71,342 – Boston $1,454 $166,939 $196,356 $135,334 – Charlotte $1,025 $67,400 $79,934 $55,789 5.4 Hartford $80 $75,373 $151,490 $52,252 – New York $10,711 $187,332 $336,559 $125,000 4.8 Norfolk $272 $109,786 $124,864 $82,193 – Northern NJ $1,628 $127,967 $172,022 $113,540 – Philadelphia $1,814 $95,066 $109,439 $85,395 5.9 Pittsburgh $77 $65,385 $86,481 $37,951 – Raleigh $1,154 $78,361 $87,737 $69,087 5.6 Richmond $132 $73,448 $93,209 $59,091 – Washington, D.C. $3,394 $193,715 $244,340 $128,152 5.2 East Total $26,404 $125,647 $225,173 $97,222 5.5 U.S. Total $78,236 $99,431 $169,129 $83,333 5.8 Source: RERC.

n The average price per unit of hotel space in the East re- n Both the East regional size- and price-weighted average gion dipped below the national average price during first prices per hotel unit declined during first quarter 2008. In quarter 2008. (This is due in part to some recent huge ho- addition, the weighted average capitalization rate for hotel transactions in the West region.) The weighted average tels in the East region increased by 50 basis points during capitalization rate for hotel properties in the East region the quarter. was equal to the national rate during this time period.

RERC Size-Weighted Avg. PPU - 1Q 2008 RERC Price-Weighted Avg. PPU - 1Q 2008 $400,000 $525,000 East U.S. Total $450,000 East Size-Weighted Average PPU U.S. Total $300,000 Price-Weighted Average PPU $375,000

$300,000 $200,000 $225,000

$150,000 $100,000 $75,000

$0 $0

East Hotel Transactions (4/1/07 - 3/31/08) Volume Size-weighted Price-weighted Median Average (millions) Average ($/unit) Average ($/unit) ($/sf) Cap Rate (%) Baltimore $752 $173,559 $189,845 $143,916 8.5 Boston $1,578 $190,223 $247,653 $123,888 – Charlotte $170 $70,441 $85,986 $74,931 – Hartford $78 $78,709 $94,823 $67,368 – New York $4,441 $359,687 $479,832 $210,047 7.3 Norfolk $289 $105,001 $143,799 $88,235 – Northern NJ $1,174 $144,634 $186,825 $101,334 7.0 Philadelphia $735 $143,121 $196,098 $109,357 – Pittsburgh $208 $112,780 $152,198 $90,239 – Raleigh $269 $78,801 $93,115 $74,843 – Richmond $212 $87,893 $103,832 $83,986 – Washington, D.C. $2,149 $198,549 $273,780 $117,731 – East Total $14,820 $164,534 $280,371 $108,534 7.9 U.S. Total $59,238 $171,778 $489,300 $103,488 7.9 Source: RERC.

East Region Space Market

Trusted Advice. Proven Performance. Office - 1Q-2008 Inventory SF (000s) Vacancy Rate (%) Net Absorption SF (000s) Asking Rents ($/SF) CBRE/Torto Wheaton Research is a Baltimore 51,497 12.9 638 $22.62 Gross full-service research and investment Boston 158,092 10.7 484 $25.90 Gross advisory firm, specializing in commercial real estate markets. Charlotte 39,438 11.2 16 $18.58 Gross Hartford 26,317 16.4 -113 $18.62 Gross With over 20 years of experience, New York 433,825 6.0 -1,207 $57.38 Gross our industry leading research, mar- Newark 43,973 14.8 -656 $24.81 Gross ket expertise, and strategic partner- Philadelphia 103,720 11.3 359 $22.45 Net ships provide clients with tactical ad- Pittsburgh 66,333 13.7 872 $18.40 Gross vice and strategic direction to identify Raleigh 38,733 12.5 24 $20.21 Gross market opportunities that enhance Washington, DC 273,043 10.6 695 $33.17 Gross performance and manage risk. Industrial - 1Q-2008

CBRE/TWR is internationally rec- Inventory SF (000s) Availability Rate (%) Net Absorption SF (000s) Asking Rents ($/SF) ognized for our solid foundation in Baltimore 200,414 13.2 247 $6.26 Net economics, accurate forecasts, ana- Boston 400,652 14.7 -1,377 $6.91 Net lytical expertise, and providing clients Charlotte 181,960 9.3 -26 $4.96 Net with unparalleled insight into the dy- Hartford 69,086 10.7 -243 $4.90 Net namics of the real estate market that New York 304,441 8.7 348 $7.23 Net impact performance. Newark 213,672 7.6 629 $7.08 Net Philadelphia 427,762 10.0 -232 $5.90 Net Pittsburgh 114,595 14.1 1,380 $4.57 Gross Raleigh 66,547 10.8 358 $6.18 Net Washington, DC 189,058 12.0 -702 $10.18 Net Retail - 1Q-2008 Inventory SF (000s) Availability Rate (%) Net Absorption SF (000s) TWR Rent Index ($/SF) Baltimore 34,765 8.5 -382 $18.88 Boston 60,514 7.9 160 $17.41 Charlotte 16,065 7.9 -131 $19.03 New York 33,917 7.2 -68 $32.40 William Wheaton Jon Southard James Costello Newark 13,548 5.1 41 $25.53 Ph.D., Principal Principal Principal Philadelphia 56,422 9.5 293 $19.98 Washington, DC 61,155 4.7 51 $27.26 Space Market Data has been provided courtesy of Torto Wheaton Research. Analysis within this report is solely compiled and produced by the Real Estate Research Corporation, and in no way reflects the interpretations, opinions, or conclusions of Torto Wheaton Research.

RERC extends its appreciation to CBRE/Torto Wheaton Research, which contributed all of the space market information on this page.

Investment Trends Copyright© 2008 by Real Estate Research Corporation (RERC) and the CCIM Institute. 40 Quarterly Demographics & Economics Last Previous Metro Trend Analysis Population Unemployment Rate (March 2008) Quarter Year Baltimore MSA 2.7 million Baltimore2 3.8% Office Baltimore Growth1 0.72% Maryland2 3.7% Size-Weighted Average PPSF   1 2 National Growth 1.30% National 5.2% Weighted Average Cap Rate  – Household Income & Value Industrial Per Capita Income $31,850 2007 Households 1.0 million Size-Weighted Average PPSF   1-year Job Growth – Household Growth 0.77% 1-Year Job Additions – Median Home Price $305,618 Weighted Average Cap Rate – – Major Employers Retail Northrup Grumman Electronic Systems Size-Weighted Average PPSF   John Hopkins Hospital Weighted Average Cap Rate   H & S Bakery Apartment Lifebridge Health Size-Weighted Average PPU   John Hopkins School of Medicine Weighted Average Cap Rate – –

BaltimoreSources: Bureau of Labor Statistics, NAR, STDB Online. 1Projected annual growth over 5 years (2007-2012). 2Rates are non-seasonally adjusted. Hotel Noteworthy Transactions Size-Weighted Average PPU   Sale Date Sale Price Sq. Ft./Units PPSF/PPU Weighted Average Cap Rate   Office * 311 N. Charles St. 2-08 $1,395,000 7,025 $199 Metro Cap Rate Comparison Current Quarter North Ridge Professional 3-08 $5,300,000 42,433 $125 Office Industrial vs. East Region  1810 Portal St. 1-08 $19,291,132 244,000 $79 vs. Nation  Retail Industrial 21 & 23 N. Howard St. 2-08 $410,000 5,064 $81 vs. East Region – Apartment Rodgers Forge 1-08 $45,000,000 508 $88,583 vs. Nation – Dulaney Crescent 3-08 $56,100,000 264 $212,500 Retail Hotel vs. East Region  Embassy Suites 2-08 $49,400,000 223 $221,525 vs. Nation  Residence Inn 2-08 $41,664,615 188 $221,620 Hotel Compiled by RERC for the RERC/CCIM Investment Trends Quarterly report. vs. East Region  Market Construction/Redevelopment Activity Property New(N)/ Total Sq. Estimated vs. Nation  Type Refurbished(R) Ft./Units Delivery *Comparison of current quarter weighted average capitalization rates. Source: RERC. Nursery Road Plaza Retail N 22,000 N/A Forest Hill Business Mixed Use N 8,600 2008 Center Route 175 Office N 2,500,000 N/A ARC Properties at Mixed Use N 1,600,000 N/A McCormick Spice Mechanic Theater Mixed Use R 110,000 N/A Sources: CBRE, RE Business.

Investment Trends Copyright© 2008 by Real Estate Research Corporation (RERC) and the CCIM Institute. 41 Quarterly Baltimore Transaction Breakdown (4/1/07 - 3/31/08) Office Industrial Retail Apartment Hotel < $5 Million Volume (Mil) $65 $62 $57 $23 – Size Weighted Avg. ($ per sf/unit) $128 $63 $109 $59,310 – Price Weighted Avg. ($ per sf/unit) $185 $97 $170 $64,434 – Baltimore Median ($ per sf/unit) $125 $64 $96 $57,681 – > $5 Million Volume (Mil) $1,192 $586 $220 $800 $749 Size Weighted Avg. ($ per sf/unit) $196 $66 $140 $127,355 $173,987 Price Weighted Avg. ($ per sf/unit) $267 $76 $186 $186,760 $190,176 Median ($ per sf/unit) $157 $69 $143 $89,213 $143,916 All Transactions Volume (Mil) $1,257 $649 $276 $823 $752 Size Weighted Avg. ($ per sf/unit) $191 $65 $132 $123,408 $173,559 Price Weighted Avg. ($ per sf/unit) $262 $78 $183 $183,350 $189,845 Median ($ per sf/unit) $145 $69 $112 $71,342 $143,916 Capitalization Rates (All Transactions) Weighted Average (%) 6.5 – 6.2 – 8.5 Median (%) 6.5 – 7.0 – 8.8 Source: RERC.

Historical Median Price per Square Foot Historical Median Price per Square Foot (12 month trailing) – OFFICE (12 month trailing) – INDUSTRIAL

Please note that in order to more accurately reflect 12-month trailing average trends, scales are unique to each chart and for each property type and do not carry over from one chart to another.

Historical Median Price per Square Foot Footnotes: (12 month trailing) – RETAIL 1The large increase in average price was due in great part to the sale of 1 Westview Center for $60.2 million.

Investment Trends Copyright© 2008 by Real Estate Research Corporation (RERC) and the CCIM Institute. 42 Quarterly Demographics & Economics Last Previous Metro Trend Analysis Population Unemployment Rate (March 2008) Quarter Year Boston MSA 4.5 million Boston2 4.3% Office Boston Growth1 0.37% Massachusetts2 4.8% Size-Weighted Average PPSF   1 2 National Growth 1.30% National 5.2% Weighted Average Cap Rate   Household Income & Value Industrial Per Capita Income $38,631 2007 Households 1.7 million Size-Weighted Average PPSF   1-year Job Growth 1.20% Household Growth 0.43%  1-year Job Additons 29,000 Median Home Price $383,167 Weighted Average Cap Rate – Major Employers Retail Risk Consultants Size-Weighted Average PPSF  

Boston Boston University Weighted Average Cap Rate =  Fidelity Investments Life Insurance Apartment John Hancock Life Insurance Co. USA Size-Weighted Average PPU   Northeastern University Hotel Sources: Bureau of Labor Statistics, NAR, STDB Online. “Home Price Analysis Report for Boston Region – 2007” ©2007 NATIONAL ASSOCIATION OF REAL- TORS®. Used with permission. Reproduction, reprinting, or retransmission of this document in any form Size-Weighted Average PPU   (electronic media included) is prohibited without written permission. 1Projected annual growth over 5 years (2007-2012). 2Rates are non-seasonally adjusted. Metro Cap Rate Comparison* Current Quarter Noteworthy Transactions Office Sale Date Sale Price Sq. Ft./Units PPSF/PPU vs. East Region = Office vs. Nation  Fleet Center 1-08 $402,975,873 777,000 $519 Exchange Place 1-08 $570,493,514 1,100,000 $519 Industrial Industrial vs. East Region  285 Summer St. 1-08 $15,500,000 54,000 $287 vs. Nation  160 University Ave. 2-08 $13,500,000 47,680 $283 Retail Retail vs. East Region  125 Newbury St. 2-08 $6,864,000 8,994 $763 vs. Nation  Walgreens & Beverly 3-08 $11,200,000 21,487 $521 National Bank *Comparison of current quarter weighted average capitalization rates. Source: RERC. Apartment 351 Massachusetts Ave. 1-08 $10,400,000 52 $200,000 55 Revere St. 2-08 $2,000,000 10 $200,000 Hotel Residence Inn 2-08 $49,000,000 221 $221,719 Hilton Garden Inn Burlington 2-08 $39,700,000 179 $221,788 Compiled by RERC for the RERC/CCIM Investment Trends Quarterly report. Market Construction/Redevelopment Activity Property New(N)/ Total Sq. Estimated Type Refurbished(R) Ft./Units Delivery Wellington Business Park Mixed Use N 6,098,325 2009 Two Financial Center Office N 214,200 2009 416 N. Howard St. Multifamily N 80 2009 301 Binney St. Office N 500,000 N/A Franklin St. Luxury Tower Mixed Use R 1,186,000 2011 Sources: CBRE, RE Business.

Investment Trends Copyright© 2008 by Real Estate Research Corporation (RERC) and the CCIM Institute. 43 Quarterly Boston Transaction Breakdown (4/1/07 - 3/31/08) Office Industrial Retail Apartment Hotel < $5 Million Volume (Mil) $186 $316 $231 $93 $22 Size Weighted Avg. ($ per sf/unit) $102 $74 $116 $97,968 $45,809 Price Weighted Avg. ($ per sf/unit) $130 $95 $180 $167,521 $51,221 Boston Median ($ per sf/unit) $103 $77 $104 $92,668 $44,271 > $5 Million Volume (Mil) $6,702 $1,665 $1,264 $1,361 $1,556 Size Weighted Avg. ($ per sf/unit) $289 $93 $203 $175,345 $199,132 Price Weighted Avg. ($ per sf/unit) $401 $150 $294 $198,319 $250,441 Median ($ per sf/unit) $233 $94 $210 $173,313 $134,318 All Transactions Volume (Mil) $6,888 $1,981 $1,495 $1,454 $1,578 Size Weighted Avg. ($ per sf/unit) $275 $90 $182 $166,939 $190,223 Price Weighted Avg. ($ per sf/unit) $394 $141 $277 $196,356 $247,653 Median ($ per sf/unit) $155 $83 $152 $135,334 $123,888 Capitalization Rates (All Transactions) Weighted Average (%) 5.3 4.8 6.0 – – Median (%) 6.3 7.8 6.5 – – Source: RERC.

Historical Median Price per Square Foot Historical Median Price per Square Foot Historical Median Price per Square Foot (12 month trailing) – OFFICE (12 month trailing) – INDUSTRIAL (12 month trailing) – RETAIL

1 2

Historical Median Price per Unit Historical Median Price per Unit Footnotes: (12 month trailing) – APARTMENT (12 month trailing) – HOTEL 1This increase was partly due to the sale of the property at 121 Brookline for $442/sf. 2This hike was partly due to several high- end property sales, including two retail centers at 123 and 360 Newbury St. which sold for $1,000/sf each.

Please note that in order to more accurately reflect 12-month trailing average trends, scales are unique to each chart and for each property type and do not carry over from one chart to another.

Investment Trends Copyright© 2008 by Real Estate Research Corporation (RERC) and the CCIM Institute. 44 Quarterly Demographics & Economics Last Previous Metro Trend Analysis Population Unemployment Rate (March 2008) Quarter Year Charlotte MSA 1.6 million Charlotte2 5.2% Office Charlotte Growth1 2.88% North Carolina2 5.2% Size-Weighted Average PPSF   1 2 National Growth 1.30% National 5.2% Weighted Average Cap Rate   Household Income & Value Industrial Per Capita Income $31,670 2007 Households 631,000 Size-Weighted Average PPSF   1-year Job Growth 2.60% Household Growth 2.96%   1-Year Job Additions 21,600 Median Home Price $170,186 Weighted Average Cap Rate Major Employers Retail Construction Equipment Guide Size-Weighted Average PPSF   Weyerhaeuser Weighted Average Cap Rate   Bank Of America Apartment Wachovia Corporation Size-Weighted Average PPU   Duke Energy Corp. Weighted Average Cap Rate   Sources: Bureau of Labor Statistics, NAR, STDB Online. “Home Price Analysis Report for Charlotte Region – 2007” ©2007 NATIONAL ASSOCIA-

Charlotte Hotel TION OF REALTORS®. Used with permission. Reproduction, reprinting, or retransmission of this document in any form (electronic media included) is prohibited without written permission. Size-Weighted Average PPU   1Projected annual growth over 5 years (2007-2012). 2Rates are non-seasonally adjusted. Noteworthy Transactions Metro Cap Rate Comparison* Current Quarter Sale Date Sale Price Sq. Ft./Units PPSF/PPU Office Office vs. East Region  Granville Office Building 2-08 $8,351,000 57,365 $146  Industrial vs. Nation Greylyn Business Park 3-08 $57,095,000 648,156 $88 Industrial Coffey Creek Int. Bus. Center 3-08 $33,050,707 397,751 $83 vs. East Region  Retail vs. Nation  Harris Teeter & Suntrust Bank 3-08 $12,664,911 45,000 $281 Retail CarMax 1-08 $9,900,000 18,697 $529 vs. East Region  Apartment vs. Nation  University Walk 2-08 $12,700,000 120 $105,833 901 Place 1-08 $19,000,000 158 $120,253 Apartment Hotel vs. East Region  Hampton Inn & Suites 1-08 $11,300,000 92 $122,826 vs. Nation  Mainstay Suites 3-08 $3,900,000 77 $50,649 *Comparison of current quarter weighted average capitalization rates. Source: RERC. Compiled by RERC for the RERC/CCIM Investment Trends Quarterly report. Market Construction/Redevelopment Activity Property New(N)/ Total Sq. Estimated Type Refurbished(R) Ft./Units Delivery Bank Of America Office N 800,000 2009 Matthews Township Office N 40,000 2009 Parkway Belgate Retail N 400,000 2009 Hillsborough & Mixed Use N N/A 2010 Dawson St. Royal Court Multifamily N 112 2009 Condominiums Sources: CBRE, RE Business.

Investment Trends Copyright© 2008 by Real Estate Research Corporation (RERC) and the CCIM Institute. 45 Quarterly Charlotte Transaction Breakdown (4/1/07 - 3/31/08) Office Industrial Retail Apartment Hotel < $5 Million Volume (Mil) $69 $164 $147 $48 $21 Size Weighted Avg. $104 $48 $89 $34,299 $32,748 Price Weighted Avg. $160 $74 $156 $39,745 $34,641 Charlotte Median $97 $50 $84 $35,122 $30,789 > $5 Million Volume (Mil) $1,102 $369 $321 $977 $148 Size Weighted Avg. $175 $42 $145 $70,761 $84,514 Price Weighted Avg. $214 $66 $180 $81,912 $93,414 Median $146 $64 $148 $65,212 $91,089 All Transactions Volume (Mil) $1,171 $533 $468 $1,025 $170 Size Weighted Avg. $168 $44 $121 $67,400 $70,441 Price Weighted Avg. $211 $68 $172 $79,934 $85,986 Median $136 $53 $103 $55,789 $74,931 Capitalization Rates (All Transactions) Weighted Average 7.8 7.4 6.9 5.4 – Median 7.9 7.1 6.8 5.5 – Source: RERC.

Historical Median Price per Square Foot Historical Median Price per Square Foot (12 month trailing) – OFFICE (12 month trailing) – INDUSTRIAL

Please note that in order to more accurately reflect 12-month trailing average trends, scales are unique to each chart and for each Historical Median Price per Unit property type and do not carry (12 month trailing) – APARTMENT over from one chart to another.

Investment Trends Copyright© 2008 by Real Estate Research Corporation (RERC) and the CCIM Institute. 46 Quarterly Demographics & Economics Last Previous Metro Trend Analysis Population Unemployment Rate (March 2008) Quarter Year Hartford MSA 1.2 million Hartford2 5.7% Office Hartford Growth1 0.61% Connecticut2 5.5% Size-Weighted Average PPSF   1 2 National Growth 1.30% National 5.2% Industrial Household Income & Value Size-Weighted Average PPSF   Per Capita Income $34,879 2007 Households 468,000 Retail 1-year Job Growth 0.50% Household Growth 0.70% Size-Weighted Average PPSF =  1-Year Job Additions 2,700 Median Home Price $263,044 Major Employers Apartment Aetna Inc. Size-Weighted Average PPU   Hartford Hospital Hotel Hartford Financial SVC Group Size-Weighted Average PPU  

Hartford Travelers Indemnity Source: RERC. Uniprise Inc. Sources: Bureau of Labor Statistics, NAR, STDB Online. “Home Price Analysis Report for Hartford Region – 2007” ©2007 NATIONAL ASSOCIATION OF REALTORS®. Used with permission. Reproduction, reprinting, or retransmission of this document in any form (electronic media included) is prohibited without written permission. 1Projected annual growth over 5 years (2007-2012). 2Rates are non-seasonally adjusted. Noteworthy Transactions Sale Date Sale Price Sq. Ft./Units PPSF/PPU Office 81 Gillett St. 2-08 $18,000,000 281,000 $64 43 Western Blvd. 1-08 $5,300,000 47,403 $112 Industrial Bristol Business Center 2-08 $60,500,000 1,160,000 $52 Retail School Street Square 1-08 $19,200,000 147,358 $130 East Brook Mall 3-08 $30,100,000 244,186 $123 Apartment 45 & 86 Webster St. 1-08 $5,434,234 103 $52,760 Vintage at The Grove 3-08 $45,300,000 322 $140,683 Compiled by RERC for the RERC/CCIM Investment Trends Quarterly report. Market Construction/Redevelopment Activity Property New(N)/ Total Sq. Estimated Type Refurbished(R) Ft./Units Delivery Hartford Financial Office N 450,000 2008 Services Sources: CBRE, RE Business.

Investment Trends Copyright© 2008 by Real Estate Research Corporation (RERC) and the CCIM Institute. 47 Quarterly Hartford Transaction Breakdown (4/1/07 - 3/31/08) Office Industrial Retail Apartment Hotel < $5 Million Volume (Mil) $27 $82 $39 $19 – Size Weighted Avg. ($ per sf/unit) $80 $54 $75 $45,446 – Price Weighted Avg. ($ per sf/unit) $100 $83 $88 $51,567 – Hartford Median ($ per sf/unit) $81 $55 $67 $50,000 – > $5 Million Volume (Mil) $105 $147 $212 $60 $66 Size Weighted Avg. ($ per sf/unit) $132 $43 $111 $95,610 $97,963 Price Weighted Avg. ($ per sf/unit) $173 $46 $141 $183,606 $105,516 Median ($ per sf/unit) $183 $45 $118 $74,277 $88,051 All Transactions Volume (Mil) $131 $229 $251 $80 $78 Size Weighted Avg. ($ per sf/unit) $117 $47 $104 $75,373 $78,709 Price Weighted Avg. ($ per sf/unit) $158 $59 $132 $151,490 $94,823 Median ($ per sf/unit) $87 $52 $75 $52,252 $67,368 Capitalization Rates (All Transactions) Weighted Average (%) – – – – – Median (%) – – – – – Source: RERC.

Historical Median Price per Square Foot Historical Median Price per Square Foot (12 month trailing) – OFFICE (12 month trailing) – INDUSTRIAL

Please note that in order to more accurately reflect 12-month trailing average trends, scales are unique to each chart and Historical Median Price per Square Foot (12 month trailing) – RETAIL for each property type and do not carry over from one chart to another.

Investment Trends Copyright© 2008 by Real Estate Research Corporation (RERC) and the CCIM Institute. 48 Quarterly Demographics & Economics Last Previous Metro Trend Analysis Population Unemployment Rate (March 2008) Quarter Year New York MSA 19.1 million New York2 4.6% Office New York Growth1 0.57% New York2 5.1% Size-Weighted Average PPSF   1 2 National Growth 1.30% National 5.2% Weighted Average Cap Rate =  Household Income & Value Industrial Per Capita Income $34,906 2007 Households 6.9 million Size-Weighted Average PPSF   1-year Job Growth – Household Growth 0.56% 1-Year Job Additions – Median Home Price $433,590 Retail Major Employers Size-Weighted Average PPSF   Merrill Lynch & Co. Inc. Weighted Average Cap Rate =  Mount Sinai Medical Center Apartment Pfizer Inc. Size-Weighted Average PPU   Bear Sterns Co. Inc. Weighted Average Cap Rate =  American Express Co. Hotel Sources: Bureau of Labor Statistics, NAR, STDB Online. 1Projected annual growth over 5 years (2007-2012). 2Rates are non-seasonally adjusted. Size-Weighted Average PPU   Noteworthy Transactions Weighted Average Cap Rate   Sale Date Sale Price Sq. Ft./Units PPSF/PPU Metro Cap Rate Comparison* Current Quarter Office 650 Madison Ave. 2-08 $695,000,000 600,000 $1,158 Office 31 W. 52nd St. 1-08 $547,500,000 729,011 $751 vs. East Region  Industrial vs. Nation  305 E. 61st St. 2-08 $28,000,000 65,835 $425 Retail New York511 City W. 25th St. 2-08 $49,503,999 83,612 $592 vs. East Region  Retail vs. Nation  Gramercy by Stark Retail 1-08 $22,032,500 13,850 $1,591 206 E. 14th St. 2-08 $17,500,000 8,000 $2,188 Apartment Apartment vs. East Region  Stonehenge 65 1-08 $126,666,667 158 $801,688 vs. Nation  1000 Jefferson 2-08 $117,600,000 217 $541,935 Hotel Hotel vs. East Region  Hotel 57 1-08 $99,000,000 220 $450,000 vs. Nation  Duane St. Hotel 1-08 $24,750,000 45 $550,000 *Comparison of current quarter weighted average capitalization rates. Compiled by RERC for the RERC/CCIM Investment Trends Quarterly report. Source: RERC. Market Construction/Redevelopment Activity Property New(N)/ Total Sq. Estimated Type Refurbished(R) Ft./Units Delivery Atlantic Yards Project Mixed Use N 8,000,000 2009/2017 Tower of the World Office R 1,300,000 2013 Trade Center 44 Berry St. Retail R 45,000 N/A 162-184 Myrtle Ave. Mixed Use N 240,000 2009 Georgica Multifamily N 58 2009 Sources: CBRE, RE Business.

Investment Trends Copyright© 2008 by Real Estate Research Corporation (RERC) and the CCIM Institute. 49 Quarterly New York Transaction Breakdown (4/1/07 - 3/31/08) Office Industrial Retail Apartment Hotel < $5 Million Volume (Mil) $296 $567 $901 $1,646 – Size Weighted Avg. ($ per sf/unit) $186 $120 $204 $108,053 – Price Weighted Avg. ($ per sf/unit) $265 $176 $314 $144,908 – New York Median ($ per sf/unit) $194 $134 $183 $98,000 – > $5 Million Volume (Mil) $33,485 $1,871 $3,291 $9,065 $4,431 Size Weighted Avg. ($ per sf/unit) $564 $206 $375 $216,131 $362,980 Price Weighted Avg. ($ per sf/unit) $723 $371 $576 $371,365 $480,726 Median ($ per sf/unit) $518 $164 $538 $165,387 $211,830 All Transactions Volume (Mil) $33,781 $2,439 $4,192 $10,711 $4,441 Size Weighted Avg. ($ per sf/unit) $554 $177 $318 $187,332 $359,687 Price Weighted Avg. ($ per sf/unit) $719 $326 $520 $336,559 $479,832 Median ($ per sf/unit) $384 $139 $236 $125,000 $210,047 Capitalization Rates (All Transactions) Weighted Average (%) 5.1 – 6.3 4.8 7.3 Median (%) 4.9 – 6.4 5.7 7.1 Source: RERC.

Historical Median Price per Square Foot Historical Median Price per Square Foot (12 month trailing) – INDUSTRIAL (12 month trailing) – RETAIL 1 Please note that in order to more accurately reflect 12-month trailing average trends, scales are unique to each chart and for each property type and do not carry over from one chart to another.

Historical Median Price per Unit Footnotes: (12 month trailing) – APARTMENT 1This quarter was substantially higher than recent quarters, partly due to the sale of the retail property at 714 Lex- ington Ave., which sold for $1,429/sf.

Investment Trends Copyright© 2008 by Real Estate Research Corporation (RERC) and the CCIM Institute. 50 Quarterly Demographics & Economics Last Previous Metro Trend Analysis Population Unemployment Rate (March 2008) Quarter Year Norfolk MSA 1.7 million Norfolk2 4.1% Office Norfolk Growth1 0.99% Virginia2 3.9% Size-Weighted Average PPSF   1 2 National Growth 1.30% National 5.2% Weighted Average Cap Rate –  Household Income & Value Industrial Per Capita Income $26,184 2007 Households 633,000 Size-Weighted Average PPSF   1-year Job Growth – Household Growth 1.14% Weighted Average Cap Rate –  1-Year Job Additions – Median Home Price $238,312 Major Employers Retail Sentara Norfolk General Hospital Size-Weighted Average PPSF  

Norfolk Landmark Inc. Weighted Average Cap Rate   Old Dominion University Apartment BAE Systems Size-Weighted Average PPU   Norfolk Ship Repair Hotel Sources: Bureau of Labor Statistics, NAR, STDB Online. 1Projected annual growth over 5 years (2007-2012). 2Rates are non-seasonally adjusted. Size-Weighted Average PPU   Noteworthy Transactions Metro Cap Rate Comparison* Current Quarter Sale Date Sale Price Sq. Ft./Units PPSF/PPU Office Retail 3415 Azalea Garden 2-08 $2,150,000 29,500 $73 vs. East Region  Hampton North II 1-08 $5,100,000 67,749 $75 vs. Nation  Industrial *Comparison of current quarter weighted average capitalization rates. Source: RERC. 508 E. Indian River Road 2-08 $3,400,000 4,275 $795 AmeriCold 3-08 $7,900,000 106,205 $74 Retail Jefferson Commons 2-08 $77,000,000 306,249 $251 FMR Bloom Brothers 1-08 $7,800,000 50,400 $155 Apartment Watermans Crossing 2-08 $29,700,000 260 $114,231 Hotel Radisson 3-08 $10,000,000 350 $28,571 Compiled by RERC for the RERC/CCIM Investment Trends Quarterly report. Market Construction/Redevelopment Activity Property New(N)/ Total Sq. Estimated Type Refurbished(R) Ft./Units Delivery Hilton Hotel N 235 2009 Wachovia Center Office/Retail N 300,000 2010 Ghent Station Office/Retail N 130,000 2009 Sources: CBRE, RE Business.

Investment Trends Copyright© 2008 by Real Estate Research Corporation (RERC) and the CCIM Institute. 51 Quarterly Norfolk Transaction Breakdown (4/1/07 - 3/31/08) Office Industrial Retail Apartment Hotel < $5 Million Volume (Mil) $54 $43 $31 $4 – Size Weighted Avg. ($ per sf/unit) $130 $64 $116 $48,689 – Price Weighted Avg. ($ per sf/unit) $211 $132 $210 $49,060 – Norfolk Median ($ per sf/unit) $135 $63 $92 $49,019 – > $5 Million Volume (Mil) $185 $135 $222 $268 $286 Size Weighted Avg. ($ per sf/unit) $162 $64 $176 $111,669 $110,655 Price Weighted Avg. ($ per sf/unit) $190 $74 $222 $125,883 $144,962 Median ($ per sf/unit) $146 $66 $185 $105,800 $88,962 All Transactions Volume (Mil) $239 $178 $253 $272 $289 Size Weighted Avg. ($ per sf/unit) $153 $64 $166 $109,786 $105,001 Price Weighted Avg. ($ per sf/unit) $195 $87 $220 $124,864 $143,799 Median ($ per sf/unit) $139 $64 $134 $82,193 $88,235 Capitalization Rates (All Transactions) Weighted Average (%) – – 6.3 – – Median (%) – – 6.3 – – Source: RERC.

Historical Median Price per Square Foot Historical Median Price per Square Foot (12 month trailing) – OFFICE (12 month trailing) – INDUSTRIAL

Please note that in order to more accurately reflect 12-month trailing average trends, scales are unique to each chart and for each property type and do not carry over from one chart to another.

Historical Median Price per Square Foot Footnotes: (12 month trailing) – RETAIL 1This large increase is due partially to the sale of the property at 12531 Jef- 1 ferson Ave. for $79.6 million.

Investment Trends Copyright© 2008 by Real Estate Research Corporation (RERC) and the CCIM Institute. 52 Quarterly Demographics & Economics Last Previous Metro Trend Analysis Population Unemployment Rate (March 2008) Quarter Year Newark MSA 2.1 million Newark2 – Office Newark Growth1 – New Jersey2 5.1% Size-Weighted Average PPSF   1 2 National Growth 1.30% National 5.2% Weighted Average Cap Rate = – Household Income & Value Industrial Per Capita Income – 2006 Households – Size-Weighted Average PPSF   1-year Job Growth 3.00% Household Growth – Weighted Average Cap Rate  – 1-Year Job Additions 3,500 Median Home Price $409,300 Major Employers Retail Continental Airlines Size-Weighted Average PPSF   University of Medicine/Dentistry Weighted Average Cap Rate   Prudential Financial Inc. Apartment Mt. Carmel Guild-Mental Health Service Size-Weighted Average PPU   Newark Beth Israel Medical Center Hotel Sources: Bureau of Labor Statistics, NAR. 1Projected annual growth over 5 years (2007-2012). 2Rates are non-seasonally adjusted. Size-Weighted Average PPU   Noteworthy Transactions Metro Cap Rate Comparison* Current Quarter Sale Date Sale Price Sq. Ft./Units PPSF/PPU Office Office 540 Broad St. 2-08 $35,000,000 427,720 $82 vs. East Region  9-11 Hill Drive 1-08 $4,000,000 52,000 $77 vs. Nation  Industrial Industrial Pearl Court 1-7 3-08 $42,700,000 368,863 $116 vs. East Region  380 Middlesex Ave. 1-08 $51,300,000 859,000 $60 vs. Nation  Retail Retail 45-77 Central Ave. 2-08 $22,300,000 74,380 $300 54-74 South St. 2-08 $13,000,000 45,761 $284 vs. East Region  Apartment vs. Nation  Parkwood Place 1-08 $22,000,000 293 $75,085 Hotel 1000 Jefferson St. 2-08 $117,600,000 217 $541,935 vs. East Region  Hotel vs. Nation  Sheraton Mahwah 2-08 $60,800,000 228 $266,667 *Comparison of current quarter weighted average capitalization rates. Courtyard Newark Airport 2-08 $45,000,000 203 $221,675 Source: RERC. Compiled by RERC for the RERC/CCIM Investment Trends Quarterly report. Northern New Jersey Market Construction/Redevelopment Activity Property New(N)/ Total Sq. Estimated Type Refurbished(R) Ft./Units Delivery Wall Commercial Park Office N 312,000 N/A AMB Pulaski Industrial R 878,000 N/A Distrubution Center Amboy Corporate Center Industrial N 1,100,000 2008 Montgomery Promenade Retail N 325,000 2008 (Montgomery Township) Mixed 1 million sf & The Richwood Village Use N 1,200 units 2010 Sources: CBRE, RE Business

Investment Trends Copyright© 2008 by Real Estate Research Corporation (RERC) and the CCIM Institute. 53 Quarterly Northern NJ Transaction Breakdown (4/1/07 - 3/31/08) Office Industrial Retail Apartment Hotel < $5 Million Volume (Mil) $138 $174 $155 $90 – Size Weighted Avg. ($ per sf/unit) $115 $75 $161 $80,805 – Northern NJ Price Weighted Avg. ($ per sf/unit) $159 $91 $217 $96,936 – Median ($ per sf/unit) $152 $92 $163 $78,210 – > $5 Million Volume (Mil) $1,608 $902 $666 $1,538 $1,174 Size Weighted Avg. ($ per sf/unit) $151 $71 $238 $132,506 $144,634 Price Weighted Avg. ($ per sf/unit) $198 $99 $281 $176,429 $186,825 Median ($ per sf/unit) $144 $93 $269 $116,182 $101,334 All Transactions Volume (Mil) $1,746 $1,076 $821 $1,628 $1,174 Size Weighted Avg. ($ per sf/unit) $148 $72 $218 $127,967 $144,634 Price Weighted Avg. ($ per sf/unit) $195 $98 $269 $172,022 $186,825 Median ($ per sf/unit) $145 $93 $181 $113,540 $101,334 Capitalization Rates (All Transactions) Weighted Average (%) 6.7 6.5 6.7 – 7.0 Median (%) 6.9 6.4 6.6 – 7.0 Source: RERC.

Historical Median Price per Unit Footnotes: (12 month trailing) – APARTMENT 1This price increase was partially the result of the sale of the apartment property at 300 1 Grand St. for $337,634/unit.

Please note that in order to more accurately reflect 12-month trailing average trends, scales are unique to each chart and for each property type and do not carry over from one chart to another.

Investment Trends Copyright© 2008 by Real Estate Research Corporation (RERC) and the CCIM Institute. 54 Quarterly Demographics & Economics Last Previous Metro Trends Analysis Population Unemployment Rate (March 2008) Quarter Year Philadelphia MSA 5.9 million Philadelphia2 4.9% Office Philadelphia Growth1 0.59% Pennsylvania2 5.3% Size-Weighted Average PPSF =  1 2 National Growth 1.30% National 5.2% Weighted Average Cap Rate   Household Income & Value Industrial Per Capita Income $32,067 2007 Households 2.2 million Size-Weighted Average PPSF =  1-year Job Growth 1.10% Household Growth 0.66% Retail 1-Year Job Additions 30,500 Median Home Price $250,621 Major Employers Size-Weighted Average PPSF   Philadelphia International Airport Weighted Average Cap Rate   Temple University Physicians Apartment U.S. Post Office Size-Weighted Average PPU   ACE International Weighted Average Cap Rate =  Cigna Group Insurance Hotel Sources: Bureau of Labor Statistics, NAR, STDB Online. “Home Price Analysis Report for Philadelphia Region 2007” ©2007 NATIONAL ASSOCIATION OF REAL- Size-Weighted Average PPU   TORS®. Used with permission. Reproduction, reprinting, or retransmission of this document in any form (electronic media included) is prohibited without written permission. Metro Cap Rate Comparison* Current Quarter 1Projected annual growth over 5 years (2007-2012). 2Rates are non-seasonally adjusted. Noteworthy Transactions Office Sale Date Sale Price Sq. Ft./Units PPSF/PPU vs. East Region  Philadelphia Office vs. Nation  1400 Spring Garden St. 1-08 $25,200,000 299,000 $84 Retail 123 S. Broad St. 3-08 $57,700,000 636,000 $91 vs. East Region  Industrial 10098 Sandmeyer Lane 2-08 $960,000 14,400 $67 vs. Nation  2455 Blvd. of the Generals 1-08 $6,000,000 110,422 $54 Apartment Retail vs. East Region  Logan Square 1-08 $18,400,000 350,000 $53 vs. Nation 

Cambridge Square 1-08 $8,000,000 58,883 $136 *Comparison of current quarter weighted average capitalization rates. Apartment Source: RERC. University Crossings 2-08 $27,509,069 260 $105,804 College Manor 2-08 $8,600,000 85 $101,176 Hotel Sheraton Great Valley 2-08 $48,900,000 198 $246,970 Compiled by RERC for the RERC/CCIM Investment Trends Quarterly report. Market Construction/Redevelopment Activity Property New(N)/ Total Sq. Estimated Type Refurbished(R) Ft./Units Delivery Cira Centre South Mixed Use N 733,000 Mid-2010 Uptown Worthington Mixed Use N 1,600,000 2009 Pennsylvania Mixed Use R 1,000,000 2009 Convention Center Horizon Corporate Office N 200,000 2012 Center II Le Meridien Hotel Hotel N 202 2009 Sources: CBRE, RE Business.

Investment Trends Copyright© 2008 by Real Estate Research Corporation (RERC) and the CCIM Institute. 55 Quarterly Philadelphia Transaction Breakdown (4/1/07 - 3/31/08) Office Industrial Retail Apartment Hotel < $5 Million Volume (Mil) $167 $193 $151 $75 – Size Weighted Avg. ($ per sf/unit) $113 $55 $109 $64,461 – Philadelphia Price Weighted Avg. ($ per sf/unit) $142 $72 $172 $73,253 – Median ($ per sf/unit) $125 $57 $99 $68,798 – > $5 Million Volume (Mil) $2,038 $482 $999 $1,739 $732 Size Weighted Avg. ($ per sf/unit) $144 $70 $167 $97,062 $146,765 Price Weighted Avg. ($ per sf/unit) $170 $96 $203 $111,005 $196,851 Median ($ per sf/unit) $143 $64 $163 $116,182 $111,497 All Transactions Volume (Mil) $2,206 $675 $1,150 $1,814 $735 Size Weighted Avg. ($ per sf/unit) $141 $65 $156 $95,066 $143,121 Price Weighted Avg. ($ per sf/unit) $168 $89 $199 $109,439 $196,098 Median ($ per sf/unit) $131 $57 $114 $85,395 $109,357 Capitalization Rates (All Transactions) Weighted Average (%) 7.5 – 6.6 5.9 – Median (%) 7.7 – 6.5 6.0 – Source: RERC.

Historical Median Price per Square Foot Historical Median Price per Square Foot (12 month trailing) – OFFICE (12 month trailing) – INDUSTRIAL

Please note that in order to more accurately reflect 12-month trailing average trends, scales Historical Median Price per Unit are unique to each chart and (12 month trailing) – APARTMENT for each property type and do not carry over from one chart to another.

Investment Trends Copyright© 2008 by Real Estate Research Corporation (RERC) and the CCIM Institute. 56 Quarterly Demographics & Economics Last Previous Metro Trend Analysis Population Unemployment Rate (March 2008) Quarter Year Pittsburgh MSA 2.4 million Pittsburgh2 5.2% Office Pittsburgh Growth1 -0.18% Pennsylvania2 5.3% Size-Weighted Average PPSF   1 2 National Growth 1.30% National 5.2% Industrial Household Income & Value Size-Weighted Average PPF   Per Capita Income $27,465 2007 Households 999,000 Retail 1-year Job Growth 0.40% Household Growth -0.06% Size-Weighted Average PPSF   1-Year Job Additions 4,400 Median Home Price $126,544 Major Employers Weighted Average Cap Rate   University of Pittsburgh Medical Center Health System Apartment Highmark Inc. Size-Weighted Average PPU   University of Pittsburgh Hotel Mellon Financial Corp. Size-Weighted Average PPU   The PNC Financial Service Group Inc. * Sources: Bureau of Labor Statistics, NAR, STDB Online. Metro Cap Rate Comparison Current Quarter “Home Price Analysis Report for Pittsburgh Region – 2007” ©2007 NATIONAL ASSOCIATION OF REAL- Pittsburgh TORS®. Used with permission. Reproduction, reprinting, or retransmission of this document in any form Retail (electronic media included) is prohibited without written permission. 1Projected annual growth over 5 years (2007-2012). 2Rates are non-seasonally adjusted. Vs. East Region  Noteworthy Transactions Vs. Nation  Sale Date Sale Price Sq. Ft./Units PPSF/PPU *Comparison of current quarter weighted average capitalization rates. Source: RERC. Office Union Trust 2-08 $24,108,527 594,984 $41 Twin Towers 2-08 $8,300,000 93,000 $89 Industrial 4100 Steubenville Pike 2-08 $2,400,000 121,928 $20 Thorn Hill Industrial 2-08 $8,100,000 148,000 $55 Hotel Al Monzo’s Place Inn 2-08 19,000,000 278 $68,345 Compiled by RERC for the RERC/CCIM Investment Trends Quarterly report. Market Construction/Redevelopment Activity Property New(N)/ Total Sq. Estimated Type Refurbished(R) Ft./Units Delivery Cranberry Town Office N 775,000 2009-2010 Center 5000 Town Center Office N 120,000 2009 Way-Southpointe II Dick’s Sporting Office N 610,000 2009 Goods Westinghouse Office N 775,000 2009 Electric Corporation Sources: CBRE, RE Business.

Investment Trends Copyright© 2008 by Real Estate Research Corporation (RERC) and the CCIM Institute. 57 Quarterly Pittsburgh Transaction Breakdown (4/1/07 - 3/31/08) Office Industrial Retail Apartment Hotel < $5 Million Volume (Mil) $41 $42 $43 $7 – Size Weighted Avg. ($ per sf/unit) $54 $30 $94 $19,232 – Price Weighted Avg. ($ per sf/unit) $62 $46 $168 $25,790 – Pittsburgh Median ($ per sf/unit) $59 $36 $105 $32,458 – > $5 Million Volume (Mil) $311 $116 $113 – $198 Size Weighted Avg. ($ per sf/unit) $87 $35 $155 – $130,923 Price Weighted Avg. ($ per sf/unit) $116 $46 $253 – $157,914 Median ($ per sf/unit) $86 $54 $377 – $130,645 All Transactions Volume (Mil) $353 $157 $156 $77 $208 Size Weighted Avg. ($ per sf/unit) $82 $34 $131 $65,385 $112,780 Price Weighted Avg. ($ per sf/unit) $110 $46 $230 $86,481 $152,198 Median ($ per sf/unit) $62 $44 $113 $37,951 $90,239 Capitalization Rates (All Transactions) Weighted Average (%) – – 6.7 – – Median (%) – – 6.6 – – Source: RERC.

Historical Median Price per Square Foot Historical Median Price per Square Foot (12 month trailing) – OFFICE (12 month trailing) – INDUSTRIAL

Please note that in order to more accurately reflect 12-month trailing average trends, scales are unique to each chart and for each property type and do not carry over from one chart to another.

Investment Trends Copyright© 2008 by Real Estate Research Corporation (RERC) and the CCIM Institute. 58 Quarterly Demographics & Economics Last Previous Metro Trend Analysis Population Unemployment Rate (March 2008) Quarter Year Raleigh MSA 1.0 million Raleigh2 4.0% Office Raleigh Growth1 3.61% North Carolina2 5.2% Size-Weighted Average PPSF   1 2 National Growth 1.30% National 5.2% Industrial Household Income & Value Size-Weighted Average PPSF   Per Capita Income $33,794 2007 Households 395,000 Retail 1-year Job Growth 2.30% Household Growth 3.64% Size-Weighted Average PPSF   1-Year Job Additions 11,400 Median Home Price $193,070 Major Employers Apartment North Carolina State University Size-Weighted Average PPU   Wake Medical North Healthplex Weighted Average Cap Rate   Raleigh Rex Hospital Hotel Wake County Government Size-Weighted Average PPU   Sources: Bureau of Labor Statistics, NAR, STDB Online. “Home Price Analysis Report for Raleigh Region – 2007” ©2007 NATIONAL ASSOCIATION OF REAL- Metro Cap Rate Comparison* Current Quarter TORS®. Used with permission. Reproduction, reprinting, or retransmission of this document in any form (electronic media included) is prohibited without written permission. Retail 1Projected annual growth over 5 years (2007-2012). 2Rates are non-seasonally adjusted. Noteworthy Transactions vs. East Region  Sale Date Sale Price Sq. Ft./Units PPSF/PPU vs. Nation  Office Apartment Hillsborough Place 2-08 $17,500,000 107,200 $163 vs. East Region  Somerset Park 1-08 $28,700,000 224,000 $128 vs. Nation  Industrial *Comparison of current quarter weighted average capitalization rates. 1400 Nowell Road 2-08 $1,175,000 6,534 $180 Source: RERC. Retail Preston Corners 3-08 $28,300,000 93,090 $304 Indigo Corners 1-08 $10,500,000 29,373 $357 Apartment Bexley at Briar Creek 1-08 $50,840,000 410 $124,000 Lodge at Crossroads 1-08 $50,000,000 432 $115,741 Hotel Hampton Inn 1-08 $9,350,000 131 $71,374 Marriott Townplace Suites 3-08 $7,400,000 98 $75,510 Compiled by RERC for the RERC/CCIM Investment Trends Quarterly report. Market Construction/Redevelopment Activity Property New(N)/ Total Sq. Estimated Type Refurbished(R) Ft./Units Delivery Intersection of N.C. Mixed Use N 12,000 2015 54 & South Columbia Crossroads Retail R 784,070 2009 Fairfield Corporate Multifamily N 350 2009 Center Apartments Hotel Sierra Hotel N 140 N/A CAPTRUST Tower at Office N 302,400 2009 North Hills Sources: CBRE, RE Business.

Investment Trends Copyright© 2008 by Real Estate Research Corporation (RERC) and the CCIM Institute. 59 Quarterly Raleigh Transaction Breakdown (4/1/07 - 3/31/08) Office Industrial Retail Apartment Hotel < $5 Million Volume (Mil) $130 $77 $93 $30 $18 Size Weighted Avg. ($ per sf/unit) $121 $57 $142 $54,133 $29,693 Price Weighted Avg. ($ per sf/unit) $148 $70 $205 $75,270 $31,239 Raleigh Median ($ per sf/unit) $130 $60 $161 $64,078 $33,835 > $5 Million Volume (Mil) $663 $330 $376 $1,124 $251 Size Weighted Avg. ($ per sf/unit) $150 $67 $157 $79,309 $89,492 Price Weighted Avg. ($ per sf/unit) $173 $76 $187 $88,070 $97,584 Median ($ per sf/unit) $147 $73 $148 $69,087 $85,048 All Transactions Volume (Mil) $794 $406 $469 $1,154 $269 Size Weighted Avg. ($ per sf/unit) $144 $64 $154 $78,361 $78,801 Price Weighted Avg. ($ per sf/unit) $169 $75 $190 $87,737 $93,115 Median ($ per sf/unit) $134 $66 $158 $69,087 $74,843 Capitalization Rates (All Transactions) Weighted Average (%) – – 6.9 5.6 – Median (%) – – 6.9 5.6 – Source: RERC.

Historical Median Price per Square Foot Historical Median Price per Square Foot (12 month trailing) – INDUSTRIAL (12 month trailing) – RETAIL

Please note that in order to more accurately reflect 12-month trailing average trends, scales are unique to each chart and Historical Median Price per Unit for each property type and do (12 month trailing) – APARTMENT not carry over from one chart to another.

Investment Trends Copyright© 2008 by Real Estate Research Corporation (RERC) and the CCIM Institute. 60 Quarterly Demographics & Economics Last Previous Metro Trend Analysis Population Unemployment Rate (March 2008) Quarter Year Richmond MSA 1.2 million Richmond2 4.1% Office Richmond Growth1 1.39% Virginia2 3.9% Size-Weighted Average PPSF   1 2 National Growth 1.30% National 5.2% Industrial Household Income & Value Size-Weighted Average PPSF   Per Capita Income $30,263 2007 Households 473,000 Retail 1-year Job Growth 1.20% Household Growth 1.46% Size-Weighted Average PPSF   1-Year Job Additions 7,600 Median Home Price $211,182 Major Employers Apartment Virginia Commonwealth University Size-Weighted Average PPU   Virginia Commonwealth University Health System Hotel Richmond City Offices Size-Weighted Average PPU  – Philip Morris USA Source: RERC. Museum of Fine Arts Sources: Bureau of Labor Statistics, NAR, STDB Online. “Home Price Analysis Report for Richmond Region – 2007” ©2007 NATIONAL ASSOCIA-

RichmondTION OF REALTORS®. Used with permission. Reproduction, reprinting, or retransmission of this document in any form (electronic media included) is prohibited without written permission. 1Projected annual growth over 5 years (2007-2012). 2Rates are non-seasonally adjusted. Noteworthy Transactions Sale Date Sale Price Sq. Ft./Units PPSF/PPU Office 705 E. Main 1-08 $34,400,000 323,500 $106 Waterford I 3-08 $6,900,000 46,929 $147 Industrial 1500 Roseneath Road 1-08 $4,500,000 109,460 $41 Retail 7221 Hull St. Road 2-08 $2,400,000 56,000 $43 Beaufont Center 2-08 $17,000,000 314,898 $54 Apartment Courthouse Green 3-08 $17,000,000 266 $63,910 Hotel Mariott Richmond 3-08 $53,300,000 401 $132,918 Compiled by RERC for the RERC/CCIM Investment Trends Quarterly report. Market Construction/Redevelopment Activity Property New(N)/ Total Sq. Estimated Type Refurbished(R) Ft./Units Delivery Rolls-Royce Testing Industrial N N/A 2009 Facility Meadwestvaco Office N 310,000 2009 Headquarters Reynolds Crossing Office N 300,000 N/A Bldg 1&2 Watkins Centre Office N 156,810 N/A Sources: CBRE, RE Business.

Investment Trends Copyright© 2008 by Real Estate Research Corporation (RERC) and the CCIM Institute. 61 Quarterly Richmond Transaction Breakdown (4/1/07 - 3/31/08) Office Industrial Retail Apartment Hotel < $5 Million Volume (Mil) $46 $72 $30 $21 $16 Size Weighted Avg. ($ per sf/unit) $80 $30 $90 $45,317 $37,662 Price Weighted Avg. ($ per sf/unit) $102 $42 $130 $49,428 $44,094 Richmond Median ($ per sf/unit) $81 $33 $84 $55,357 $46,328 > $5 Million Volume (Mil) $328 $73 $143 $111 $196 Size Weighted Avg. ($ per sf/unit) $138 $59 $107 $83,226 $98,503 Price Weighted Avg. ($ per sf/unit) $172 $74 $146 $101,495 $108,656 Median ($ per sf/unit) $147 $58 $142 $71,476 $92,713 All Transactions Volume (Mil) $374 $145 $173 $132 $212 Size Weighted Avg. ($ per sf/unit) $127 $40 $104 $73,448 $87,893 Price Weighted Avg. ($ per sf/unit) $164 $58 $143 $93,209 $103,832 Median ($ per sf/unit) $113 $41 $92 $59,091 $83,986 Capitalization Rates (All Transactions) Weighted Average (%) – – – – – Median (%) – – – – – Source: RERC.

Historical Median Price per Square Foot Historical Median Price per Square Foot (12 month trailing) – OFFICE (12 month trailing) – INDUSTRIAL

Please note that in order to more accurately reflect 12-month trailing average trends, scales are unique to each chart and for each property type and do not carry over from one chart to another.

Investment Trends Copyright© 2008 by Real Estate Research Corporation (RERC) and the CCIM Institute. 62 Quarterly Demographics & Economics Last Previous Metro Trend Analysis Population Unemployment Rate (March 2008) Quarter Year Washington, D.C. MSA 5.5 million Washington, D.C.2 3.4% Office Washington, D.C. Growth1 1.78% District of Columbia2 6.4% Size-Weighted Average PPSF   1 2 National Growth 1.30% National 5.2% Weighted Average Cap Rate   Household Income & Value Industrial Per Capita Income $40,751 2007 Households 2.0 million Size-Weighted Average PPSF   1-year Job Growth 1.60% Household Growth 1.77% Retail 1-Year Job Additions 47,600 Median Home Price $430,688 Major Employers Size-Weighted Average PPSF   George Washington University Weighted Average Cap Rate   Washington Met. Area Transit Authority Apartment Federal Bureau of Investigation Size-Weighted Average PPU   Multilateral Investment Guarantee Agency Weighted Average Cap Rate  = Georgetown University Hotel Sources: Bureau of Labor Statistics, NAR, STDB Online. “Home Price Analysis Report for Washington, D.C. Region – 2007” ©2007 NATIONAL ASSO- Size-Weighted Average PPU   CIATION OF REALTORS®. Used with permission. Reproduction, reprinting, or retransmission of this document in any form (electronic media included) is prohibited without written permission. Metro Cap Rate Comparison* Current Quarter 1Projected annual growth over 5 years (2007-2012). 2Rates are non-seasonally adjusted. Noteworthy Transactions Office Sale Date Sale Price Sq. Ft./Units PPSF/PPU vs. East Region  Office vs. Nation  1333 H St. NE 1-08 $130,000,000 269,000 $483 Retail 1111 19th St. 1-08 $115,000,000 252,000 $456 vs. East Region = Industrial vs. Nation  6250 Chillum Place NW 2-08 $3,535,000 40,800 $87 Apartment Apartment 1631 S. St. NW 2-08 $8,170,299 64 $127,661 vs. East Region  Hotel vs. Nation 

Washington,Hilton D.C. Garden Inn 2-08 $66,486,087 300 $221,620 *Comparison of current quarter weighted average capitalization rates. Source: RERC. Washington Terrace Hotel 2-08 $48,756,464 220 $221,620 Compiled by RERC for the RERC/CCIM Investment Trends Quarterly report. Market Construction/Redevelopment Activity Property New(N)/ Total Sq. Estimated Type Refurbished(R) Ft./Units Delivery 401 M St. SE Office/Retail N 330,000 2010 Twinbrook Office N 487,000 2009 Commons I Watkins Mill Office N 487,000 2009 Town Center 1999 K St. NW Office N 88,000 2009 700 2nd St. NE Office N 515,000 2009 Sources: CBRE, RE Business.

Investment Trends Copyright© 2008 by Real Estate Research Corporation (RERC) and the CCIM Institute. 63 Quarterly Washington, D.C. Transaction Breakdown (4/1/07 - 3/31/08) Office Industrial Retail Apartment Hotel < $5 Million Volume (Mil) $160 $141 $185 $51 – Size Weighted Avg. ($ per sf/unit) $173 $89 $174 $85,226 – Washington, D.C. Price Weighted Avg. ($ per sf/unit) $261 $118 $293 $113,429 – Median ($ per sf/unit) $217 $105 $181 $82,551 – > $5 Million Volume (Mil) $14,279 $511 $927 $3,343 $2,145 Size Weighted Avg. ($ per sf/unit) $369 $121 $179 $197,516 $199,188 Price Weighted Avg. ($ per sf/unit) $422 $148 $301 $246,318 $274,171 Median ($ per sf/unit) $332 $132 $244 $185,915 $120,015 All Transactions Volume (Mil) $14,440 $652 $1,112 $3,394 $2,149 Size Weighted Avg. ($ per sf/unit) $365 $113 $178 $193,715 $198,549 Price Weighted Avg. ($ per sf/unit) $420 $142 $300 $244,340 $273,780 Median ($ per sf/unit) $312 $115 $211 $128,152 $117,731 Capitalization Rates (All Transactions) Weighted Average (%) 5.5 – 6.5 5.2 – Median (%) 6.0 – 6.5 5.4 – Source: RERC.

Historical Median Price per Unit Footnotes: (12 month trailing) – APARTMENT 1A large portfolio of office properties sell- ing at a price of $429/sf occurred, significantly increasing the median price.

Please note that in order to more accurately reflect 12-month trailing average trends, scales are unique to each chart and for each property type and do not carry over from one chart to another.