Denver • Honolulu • Las Vegas • Los Angeles

West Region

Denver • Honolulu • Las Vegas • Los Angeles • Phoenix • Portland • Sacramento Salt Lake City • San Diego • San Francisco • Seattle • Tucson WestRegionTransactionBreakdown

n CCIM Institute designees and candidates gave the West like national trends, with the office sector posting the great- regional economy a rating of 4.4 on a scale of 1 to 10, est decline since year-ago levels. with 10 being high, which was the lowest rating of all of the regions during second quarter 2008. Nearly half of the n Weighted-average capitalization rates for the West re- survey respondents expect the West regional economy to gion posted mixed results during second quarter 2008. worsen over the coming 4 quarters. Capitalization rates in the office, retail, and hotel sectors increased, while rates remained stable in the apartment n The volume of property transactions in the West region sector and declined in the industrial sector. decreased significantly during second quarter 2008, much

Regional Transaction Price Breakdown/Tiers West Transaction Breakdown (7/1/07 - 6/30/08) Office Industrial Retail Apartment Hotel < $2 Million “Stick to investing in fully-leased Volume (Mil) $789 $1,359 $1,077 $1,050 $30 buildings and Size Weighted Avg. ($ per sf/unit) $125 $94 $124 $78,898 $35,097 strip centers.” Price Weighted Avg. ($ per sf/unit) $165 $122 $161 $94,778 $40,771 – Phoenix Median ($ per sf/unit) $135 $105 $125 $83,333 $36,136 $2 - $5 Million Volume (Mil) $1,855 $2,511 $2,183 $2,258 $325 Size Weighted Avg. ($ per sf/unit) $182 $103 $195 $98,228 $51,037 Price Weighted Avg. ($ per sf/unit) $241 $139 $286 $129,435 $66,574 “Apartments and Median ($ per sf/unit) $217 $128 $251 $118,740 $59,733 neighborhood > $5 Million shopping centers offer Volume (Mil) $30,892 $10,659 $9,002 $19,013 $17,342 the best potential.” Size Weighted Avg. ($ per sf/unit) $278 $113 $206 $144,331 $325,928 – Los Angeles Price Weighted Avg. ($ per sf/unit) $381 $169 $354 $202,482 $908,005 Median ($ per sf/unit) $247 $122 $267 $125,885 $134,318 All Transactions Volume (Mil) $33,537 $14,529 $12,261 $22,322 $17,697 Size Weighted Avg. ($ per sf/unit) $263 $109 $193 $132,839 $292,866 “Industrial is the only investment Price Weighted Avg. ($ per sf/unit) $368 $159 $325 $190,024 $891,092 opportunity, unless Median ($ per sf/unit) $200 $116 $183 $104,762 $99,950 you use cash to Capitalization Rates (All Transactions) make a perfect buy.” Range (%) 2.8 - 12.4 3.7 - 9.1 3.0 - 8.8 3.1 - 10.2 4.0 - 13.2 – Tucson Weighted Avg. (%) 5.5 6.1 6.3 5.5 8.3 Median (%) 6.4 6.4 6.3 5.6 8.4 Source: RERC.

RERC Weighted Avg. Cap Rate - 2Q 2008 8.0% 8.0% West U.S. Total 7.5% 7.5% Avg. Capitalization Rate n During second quarter 2008, many CCIM Institute desig- 7.0% 7.0% nees and candidates noted that the office sector offered

6.5% 6.5% the lowest investment potential in the West region. Re- spondents stated that the market is overbuilt, and that ris- 6.0% 6.0% ing vacancy rates will drive asking rents lower. 5.5% 5.5% n The size- and price-weighted average price per square 5.0% 5.0% foot of office space in the West regional office sector -de 4.5% 4.5% creased by 9.4 percent and 4.3 percent, respectively, during second quarter 2008. The weighted average and me- Denver Seattle Tucson Las Vegas Phoenix San Diego Los Angeles Sacramento San Francisco dian capitalization rates increased by 10 basis points.

RERC Size-Weighted Avg. PPSF - 2Q 2008 RERC Price-Weighted Avg. PPSF - 2Q 2008

$450 West $450 $600 West $600 U.S. Total U.S. Total $400 Size-Weighted Average PPSF $400 Price-Weighted Average PPSF $500 $500 $350 $350

$300 $300 $400 $400

$250 $250 $300 $300 $200 $200 $200 $200 $150 $150

$100 $100 $100 $100

Denver Seattle Tucson Denver Seattle Tucson Honolulu Las Vegas Phoenix Portland San Diego Honolulu Las Vegas Phoenix Portland San Diego Los Angeles SacramentoSalt Lake City San Francisco Los Angeles SacramentoSalt Lake City San Francisco West Office Transactions (7/1/07 - 6/30/08) Volume Size-weighted Price-weighted Median Average (millions) Average ($/sf) Average ($/sf) ($/sf) Cap Rate (%) Denver $2,391 $137 $183 $123 7.7 Honolulu $284 $243 $269 $246 – Las Vegas $739 $274 $308 $274 7.0 Los Angeles $8,292 $306 $365 $262 5.3 Phoenix $3,290 $195 $230 $167 6.4 Portland $866 $239 $318 $160 – Sacramento $448 $199 $215 $190 7.1 Salt Lake City $426 $208 $275 $122 – San Diego $2,813 $354 $455 $256 5.8 San Francisco $10,102 $386 $504 $261 4.9 Seattle $2,456 $241 $283 $227 5.5 Tucson $251 $144 $174 $154 7.3 West Total $33,537 $263 $368 $200 5.5 U.S. Total $109,372 $227 $417 $145 5.6 Source: RERC.

RERC Weighted Avg. Cap Rate - 2Q 2008 10% 10% West U.S. Total Avg. Capitalization Rate 9% 9% n The West regional industrial market remained quite stable during second quarter 2008. The volume of industrial 8% 8% property transactions declined by about 25 percent from last quarter. 7% 7% n With average prices of industrial property space remaining 6% 6% stable, the median capitalization rate in the West region

5% 5% remained at 6.4 percent while the weighted-average capitalization rate declined 10 basis points.

Denver Seattle Tucson Honolulu Las Vegas Phoenix Portland San Diego Los Angeles SacramentoSalt Lake City San Francisco

RERC Size-Weighted Avg. PPSF - 2Q 2008 RERC Price-Weighted Avg. PPSF - 2Q 2008 $200 $200 $300 $300 West West U.S. Total U.S. Total $175 Size-Weighted Average PPSF $175 Price-Weighted Average PPSF $250 $250 $150 $150

$125 $125 $200 $200

$100 $100 $150 $150 $75 $75 $100 $100 $50 $50

$25 $25 $50 $50

Denver Phoenix Seattle Tucson Denver Phoenix Portland Seattle Tucson Honolulu Las Vegas Portland San Diego Honolulu Las Vegas San Diego Los Angeles SacramentoSalt Lake City Los Angeles SacramentoSalt Lake City San Francisco San Francisco West Industrial Transactions (7/1/07 - 6/30/08) Volume Size-weighted Price-weighted Median Average (millions) Average ($/sf) Average ($/sf) ($/sf) Cap Rate (%) Denver $687 $70 $87 $80 7.5 Honolulu $100 $183 $268 $249 9.0 Las Vegas $450 $149 $184 $162 6.0 Los Angeles $4,790 $127 $178 $140 5.6 Phoenix $2,359 $89 $113 $103 6.8 Portland $355 $93 $121 $84 6.6 Sacramento $140 $79 $95 $91 6.0 Salt Lake City $138 $65 $94 $73 6.5 San Diego $1,296 $172 $227 $161 6.2 San Francisco $1,799 $136 $199 $141 6.1 Seattle $1,261 $124 $158 $120 5.6 Tucson $188 $84 $93 $81 7.2 West Total $14,529 $109 $159 $116 6.1 U.S. Total $39,252 $71 $129 $73 6.9 Source: RERC.

RERC Weighted Avg. Cap Rate - 2Q 2008 8.0% 8.0% West U.S. Total 7.5% 7.5% Avg. Capitalization Rate n Average and median prices of retail properties in the West 7.0% 7.0% regional market were approximately $40 to $50 higher per square foot than average prices in the national retail mar- 6.5% 6.5% ket during second quarter 2008. In addition, average prices declined slightly for the West and national retail markets 6.0% 6.0% during second quarter, as weighted average capitalization 5.5% 5.5% rates increased 10 basis points.

5.0% 5.0% n Transaction volume of retail property sales declined nearly 25 percent in the West region during second quarter 2008 Denver Seattle Tucson Las Vegas Phoenix Portland San Diego Los Angeles SacramentoSalt Lake City San Francisco and about 40 percent from year-ago prices.

RERC Size-Weighted Avg. PPSF - 2Q 2008 RERC Price-Weighted Avg. PPSF - 2Q 2008 $350 $350 $550 $550 West West U.S. Total U.S. Total $300 $300 Price-Weighted Average PPSF Size-Weighted Average PPSF $450 $450

$250 $250 $350 $350 $200 $200 $250 $250 $150 $150

$150 $150 $100 $100

$50 $50 $50 $50

West Retail Transactions (7/1/07 - 6/30/08) Volume Size-weighted Price-weighted Median Average (millions) Average ($/sf) Average ($/sf) ($/sf) Cap Rate (%) Denver $769 $159 $223 $127 7.3 Honolulu $188 $250 $406 $314 – Las Vegas $894 $344 $437 $263 6.2 Los Angeles $3,113 $249 $471 $241 5.9 Phoenix $1,326 $156 $214 $175 6.7 Portland $310 $133 $155 $148 6.8 Sacramento $406 $225 $287 $240 6.4 Salt Lake City $171 $116 $162 $146 7.5 San Diego $901 $233 $346 $223 6.1 San Francisco $1,215 $229 $340 $245 6.2 Seattle $875 $232 $321 $204 5.9 Tucson $134 $149 $211 $126 6.9 West Total $12,261 $193 $325 $183 6.3 U.S. Total $46,283 $153 $278 $130 6.5 Source: RERC.

RERC Weighted Avg. Cap Rate - 2Q 2008 7.0% 7.0% West U.S. Total n 6.5% Avg. Capitalization Rate 6.5% Some survey respondents commented that the apartment sector is the strongest commercial real estate investment 6.0% 6.0% overall in the West region due to the high occupancy rates in the sector, which will promote higher rental growth. 5.5% 5.5%

5.0% 5.0% n During second quarter 2008, the volume of apartment transactions in the West region decreased by more than 4.5% 4.5% 15 percent, which was the smallest decline among the

4.0% 4.0% property types. The price-weighted and size-weighted average prices per apartment unit increased during second

Denver Seattle Tucson Las Vegas Phoenix Portland San Diego quarter, while capitalization rates remained flat. Los Angeles SacramentoSalt Lake City San Francisco

RERC Size-Weighted Avg. PPU - 2Q 2008 RERC Price-Weighted Avg. PPU - 2Q 2008

$250,000 West $250,000 $300,000 West $300,000 U.S. Total U.S. Total Size-Weighted Average PPU Price-Weighted Average PPU $250,000 $250,000 $200,000 $200,000 $200,000 $200,000

$150,000 $150,000 $150,000 $150,000

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

$50,000 $50,000 $0 $0

Denver Seattle Tucson Denver Seattle Tucson Honolulu Las Vegas Phoenix Portland San Diego Honolulu Las Vegas Phoenix Portland San Diego Los Angeles SacramentoSalt Lake City San Francisco Los Angeles SacramentoSalt Lake City San Francisco West Apartment Transactions (7/1/07 - 6/30/08) Volume Size-weighted Price-weighted Median Average (millions) Average ($/unit) Average ($/unit) ($/sf) Cap Rate (%) Denver $1,635 $91,042 $110,541 $63,601 5.0 Honolulu $216 $151,401 $156,950 $148,794 – Las Vegas $598 $100,596 $112,583 $77,587 5.8 Los Angeles $7,443 $201,243 $262,644 $126,364 5.2 Phoenix $1,951 $93,497 $112,202 $70,999 5.8 Portland $858 $99,150 $116,989 $77,336 5.6 Sacramento $462 $104,295 $125,386 $77,889 5.3 Salt Lake City $275 $84,553 $87,016 $80,992 6.9 San Diego $1,419 $157,139 $189,316 $118,580 5.5 San Francisco $3,530 $213,267 $241,898 $154,706 5.7 Seattle $2,119 $119,680 $147,580 $107,000 5.3 Tucson $212 $55,923 $65,892 $47,445 6.5 West Total $22,322 $132,839 $190,024 $104,762 5.5 U.S. Total $62,642 $99,669 $180,830 $82,876 5.8 Source: RERC.

RERC Weighted Avg. Cap Rate - 2Q 2008 7.0% 7.0% West U.S. Total n 6.5% Avg. Capitalization Rate 6.5% In keeping with national trends and in contrast to the previous quarter, the size- and price-weighted average price 6.0% 6.0% per hotel unit in the West region increased during second quarter 2008. 5.5% 5.5%

5.0% 5.0% n Transaction volume in the West regional hotel sector in the West region declined by about a third during second quar- 4.5% 4.5% ter 2008. Capitalization rates were mixed, with the weight-

4.0% 4.0% ed-average rate increasing by 20 basis points, while the median capitalization rate decreased by 10 basis points.

Denver Seattle Tucson Las Vegas Phoenix Portland San Diego Los Angeles SacramentoSalt Lake City San Francisco

RERC Size-Weighted Avg. PPU - 2Q 2008 RERC Price-Weighted Avg. PPU - 2Q 2008 $625,000 $625,000 $1,500,000 $1,500,000 West West U.S. Total U.S. Total $525,000 $525,000 Price-Weighted Average PPU Size-Weighted Average PPU $1,200,000 $1,200,000

$425,000 $425,000 $900,000 $900,000 $325,000 $325,000 $600,000 $600,000 $225,000 $225,000

$300,000 $300,000 $125,000 $125,000

$25,000 $25,000 $0 $0

Seattle Denver Phoenix Seattle Tucson Denver Honolulu Phoenix Portland Tucson Honolulu Las Vegas Portland San Diego Las Vegas Los Angeles Sacramento San Diego Los Angeles Sacramento San Francisco San Francisco West Hotel Transactions (7/1/07 - 6/30/08) Volume Size-weighted Price-weighted Median Average (millions) Average ($/unit) Average ($/unit) ($/sf) Cap Rate (%) Denver $414 $160,061 $183,313 $135,778 – Honolulu $1,742 $360,886 $374,385 $248,780 – Las Vegas $9,111 $594,965 $1,454,826 $244,648 6.6 Los Angeles $2,140 $209,488 $317,119 $116,667 8.1 Phoenix $757 $179,757 $270,243 $79,564 4.0 Portland $66 $86,202 $105,807 $63,725 – Sacramento $121 $97,370 $129,225 $75,758 8.4 Salt Lake City – – – – – San Diego $157 $120,887 $147,404 $100,000 – San Francisco $1,452 $253,651 $324,906 $117,588 – Seattle $477 $194,476 $293,183 $129,147 9.3 Tucson $288 $181,325 $294,950 $118,347 8.7 West Total $17,697 $292,866 $891,092 $99,950 8.3 U.S. Total $38,464 $199,059 $558,637 $100,515 7.5 Source: RERC.

West Region Space Market

Trusted Advice. Proven Performance. Office - 2Q-2008 Inventory SF (000s) Vacancy Rate (%) Net Absorption SF (000s) Asking Rents ($/SF) CBRE/Torto Wheaton Research is a Denver 89,037 15.3 -319 $20.42 Gross full-service research and investment Honolulu 11,500 9.5 13 $20.18 Net advisory firm, specializing in com- Las Vegas 29,944 16.1 95 $26.22 Gross mercial real estate markets. Los Angeles 174,905 11.0 -159 $31.65 Gross Phoenix 70,155 18.7 390 $25.30 Gross With over 20 years of experience, Portland 41,297 12.5 35 $21.68 Gross our industry leading research, mar- Sacramento 42,717 16.1 384 $24.89 Gross ket expertise, and strategic partner- Salt Lake City 28,898 13.6 -387 $18.38 Gross ships provide clients with tactical ad- San Diego 55,172 15.8 -161 $30.44 Gross vice and strategic direction to identify 85,598 9.7 86 $40.17 Gross market opportunities that enhance San Francisco performance and manage risk. Seattle 79,904 9.6 1,113 $30.88 Gross Tucson 7,859 19.3 -523 $22.20 Gross CBRE/TWR is internationally rec- Industrial - 2Q-2008 ognized for our solid foundation in Inventory SF (000s) Availability Rate (%) Net Absorption SF (000s) Asking Rents ($/SF) economics, accurate forecasts, ana- Denver 234,016 10.5 -29 $6.22 Net lytical expertise, and providing clients Las Vegas 86,201 6.7 2,530 $8.68 Net with unparalleled insight into the dy- Los Angeles 921,308 5.4 -4,014 $8.07 Net namics of the real estate market that Phoenix 266,525 13.7 -1,637 $7.92 Net impact performance. Portland 190,933 7.3 -801 $6.04 Net Sacramento 161,738 12.0 -636 $6.84 Net Salt Lake City 125,717 5.8 112 $5.44 Net San Diego 195,500 10.1 -943 $12.03 Net San Francisco 101,450 6.9 -1,008 $14.98 Net Seattle 281,369 6.6 -178 $7.74 Net Tucson 34,188 6.2 -326 $7.78 Gross Retail - 2Q-2008 Inventory SF (000s) Availability Rate (%) Net Absorption SF (000s) Asking Rents ($/SF) Denver 41,476 10.7 88 $6.22 Honolulu 11,254 5.3 150 – William Wheaton Jon Southard James Costello Ph.D., Principal Principal Principal Las Vegas 26,285 6.3 228 $8.68 Los Angeles 67,300 4.8 6 $8.07 Phoenix 63,784 10.2 196 $7.92 Portland 22,895 9.5 312 $6.04 Sacramento 24,219 9.5 95 $6.84 Salt Lake City 10,553 8.2 28 $5.44 San Diego 40,397 6.6 114 $12.03 RERC extends its appreciation to San Francisco 10,299 3.2 12 $14.98 CBRE/Torto Wheaton Research, Seattle 27,247 7.3 -23 $7.74 which contributed all of the space Tucson 12,684 10.2 77 $7.78 market information on this page. 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.

Investment Trends Copyright© 2008 by Real Estate Research Corporation (RERC) and the CCIM Institute. 132 Quarterly Demographics & Economics Last Previous Metro Trend Analysis Population Unemployment Rate (June 2008) Quarter Year Denver MSA 2.5 million Denver2 5.5% Office Denver Growth1 1.78% Colorado2 5.3% Size-Weighted Average PPSF   1 2 National Growth 1.23% National 5.5% Weighted Average Cap Rate   Household Income & Value Industrial Per Capita Income $35,020 2008 Households 976,625 Size-Weighted Average PPSF   1-year Job Growth 1.50% Household Growth 1.68% Weighted Average Cap Rate =  1-year Job Additions 17,900 Median Home Price $240,913 Major Employers Retail Denver International Airport Size-Weighted Average PPSF   CU School of Medicine Weighted Average Cap Rate   Denver Transportation Safety Office Apartment Molson Coors Brewing Company Size-Weighted Average PPU   Printers Personnel Weighted Average Cap Rate =  Sources: Bureau of Labor Statistics, NAR, STDB Online. “Home Price Analysis Report for Denver Region – 2007” ©2006 NATIONAL ASSOCIATION OF REAL- Hotel TORS®. 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. West Region  12110 Pecos St. 4-08 $12,250,000 117,705 $104 vs. Nation  The Citadel 6-08 $31,800,000 130,652 $243 Industrial Industrial vs. West Region  Warehouse Center 6-08 $17,000,000 325,858 $52 Verizon Call Center 5-08 $16,900,000 108,970 $155 vs. Nation  Retail Retail Belcaro Shopping Center 4-08 $19,400,000 100,000 $194 vs. West Region  Cherry Creek Square 4-08 $18,000,000 35,000 $514 vs. Nation  Apartment Apartment Orchard Crossing 6-08 $31,638,392 420 $75,330 vs. West Region  Colinas Pointe 6-08 $21,100,000 272 $77,574  Hotel vs. Nation *Comparison of current quarter weighted average capitalization rates. Radisson 5-08 $25,300,000 479 $52,818 Source: RERC. Days Inn 4-08 $9,100,000 156 $58,333 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 Precision Office Park at Centerra Office N 50,000 2009 Office/ Enterprise Park at Stapleton Industrial N 441,000 N/A 1800 Larimer Office N 500,000 2010 Embassy Suites Hotel N 250 2010 Hilton Garden Inn Hotel N 225 2010 Sources: CBRE, RE Business.

Investment Trends Copyright© 2008 by Real Estate Research Corporation (RERC) and the CCIM Institute. 133 Quarterly Denver Transaction Breakdown (7/1/07 - 6/30/08) Office Industrial Retail Apartment Hotel < $5 Million Volume (Mil) $207 $277 $248 $164 – Size Weighted Avg. ($ per sf/unit) $111 $71 $132 $56,761 – Price Weighted Avg. ($ per sf/unit) $147 $90 $178 $62,820 – Denver Median ($ per sf/unit) $116 $81 $121 $57,304 – > $5 Million Volume (Mil) $2,184 $410 $520 $1,471 $403 Size Weighted Avg. ($ per sf/unit) $140 $70 $177 $97,616 $175,196 Price Weighted Avg. ($ per sf/unit) $187 $85 $244 $115,863 $187,031 Median ($ per sf/unit) $148 $76 $194 $81,150 $214,890 All Transactions Volume (Mil) $2,391 $687 $769 $1,635 $414 Size Weighted Avg. ($ per sf/unit) $137 $70 $159 $91,042 $160,061 Price Weighted Avg. ($ per sf/unit) $183 $87 $223 $110,541 $183,313 Median ($ per sf/unit) $123 $80 $127 $63,601 $135,778 Capitalization Rates (All Transactions) Weighted Average (%) 7.7 7.5 7.3 5.0 – Median (%) 7.2 7.3 7.3 5.6 – 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 Historical Median Price per Square Foot Historical Median Price per Unit property type and do not carry (12 month trailing) – RETAIL (12 month trailing) – APARTMENT over from one chart to another.

Investment Trends Copyright© 2008 by Real Estate Research Corporation (RERC) and the CCIM Institute. 134 Quarterly Demographics & Economics Last Previous Metro Trend Analysis Population Unemployment Rate (June 2008) Quarter Year Honolulu MSA 917,673 Honolulu2 4.2% Office Honolulu Growth1 0.60% Hawaii2 4.5% Size-Weighted Average PPSF   1 2 National Growth 1.23% National 5.5% Industrial Household Income & Value Size-Weighted Average PPSF   Per Capita Income $28,669 2008 Households 305,501 Retail 1-year Job Growth 1.20% Household Growth 0.73% Size-Weighted Average PPSF   1-year Job Additions 5,500 Median Home Price $652,165 Major Employers Apartment Bank of Hawaii Size-Weighted Average PPU   Queen’s Medical Center Hotel Aloha Airlines Size-Weighted Average PPU   Honolulu Police Department Metro Cap Rate Comparison* Current Quarter Honolulu Oahu Transit Service Industrial Sources: Bureau of Labor Statistics, NAR, STDB Online. “Home Price Analysis Report for Honolulu Region – 2007” ©2006 NATIONAL ASSOCIATION OF REAL- vs. West Region  TORS®. Used with permission. Reproduction, reprinting, or retransmission of this document in any form (electronic media included) is prohibited without written permission. vs. Nation  1Projected annual growth over 5 years (2007-2012). 2Rates are non-seasonally adjusted. *Comparison of current quarter weighted average capitalization rates. Noteworthy Transactions Source: RERC. Sale Date Sale Price Sq. Ft./Units PPSF/PPU Office Lee Town Center 5-08 $6,450,000 51,732 $125 Industrial 2323 Kamehameha Hwy. 4-08 $14,220,000 115,000 $124 25 Kahului Beach Rd. 5-08 $6,950,000 28,000 $248 Retail 1613 Nuuanu Ave. 5-08 $5,500,000 38,745 $142 75-5626 Kuakini Hwy. 5-08 $3,350,000 16,900 $198 Apartment 1902 Kalihi St. 4-08 $4,995,000 42 $118,929 Hotel Diamond Hawaii Resort 5-08 $14,000,000 72 $194,444 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 616 Iwilei Rd. Office R 174,240 N/A Sources: CBRE, RE Business.

Investment Trends Copyright© 2008 by Real Estate Research Corporation (RERC) and the CCIM Institute. 135 Quarterly Honolulu Transaction Breakdown (7/1/07 - 6/30/08) Office Industrial Retail Apartment Hotel < $5 Million Volume (Mil) $15 $44 $27 $42 – Size Weighted Avg. ($ per sf/unit) $131 $184 $308 $144,015 – Price Weighted Avg. ($ per sf/unit) $183 $250 $338 $165,187 – Honolulu Median ($ per sf/unit) $93 $237 $359 $137,500 – > $5 Million Volume (Mil) $269 $56 $160 $174 $1,742 Size Weighted Avg. ($ per sf/unit) $256 $181 $243 $153,307 $363,162 Price Weighted Avg. ($ per sf/unit) $274 $283 $417 $154,953 $374,514 Median ($ per sf/unit) $265 $321 $272 $165,435 $277,962 All Transactions Volume (Mil) $284 $100 $188 $216 $1,742 Size Weighted Avg. ($ per sf/unit) $243 $183 $250 $151,401 $360,886 Price Weighted Avg. ($ per sf/unit) $269 $268 $406 $156,950 $374,385 Median ($ per sf/unit) $246 $249 $314 $148,794 $248,780 Capitalization Rates (All Transactions) Weighted Average (%) – 9.0 – – – Median (%) – 7.6 – – – Source: RERC.

Investment Trends Copyright© 2008 by Real Estate Research Corporation (RERC) and the CCIM Institute. 136 Quarterly Demographics & Economics Last Previous Metro Trend Analysis Population Unemployment Rate (June 2008) Quarter Year Las Vegas MSA 2.0 million Las Vegas2 6.5% Office

as Las Vegas Growth1 4.08% Nevada2 6.5% Size-Weighted Average PPSF   1 2 National Growth 1.23% National 5.5% Weighted Average Cap Rate = 

g Household Income & Value Industrial Per Capita Income $27,934 2008 Households 731,059 Size-Weighted Average PPSF   1-year Job Growth 1.50% Household Growth 4.04% Weighted Average Cap Rate   1-year Job Additions 13,900 Median Home Price $256,702 Major Employers Retail Bellagio Hotel Size-Weighted Average PPSF   Wynn Las Vegas Weighted Average Cap Rate =  MGM Grand Las Vegas Apartment Mirage Size-Weighted Average PPU   Venetian Resort Hotel & Casino Weighted Average Cap Rate   Sources: Bureau of Labor Statistics, NAR, STDB Online. “Home Price Analysis Report for Las Vegas Region - 2007” ©2006 NATIONAL ASSOCIATION OF REAL- Hotel

Las Ve TORS®. 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. West Region  City Center West - A 4-08 $34,500,000 105,968 $326 vs. Nation  Bank of America West 4-08 $19,800,000 24,868 $796 Industrial Industrial vs. West Region  Silverado Business Park Phase II 5-08 $6,500,000 70,200 $93 Bank West Business Park 5-08 $5,700,000 24,936 $229 vs. Nation  Retail Retail Ann & Decatur 6-08 $10,000,000 27,685 $361 vs. West Region  Lynden Square 6-08 $14,100,000 34,326 $411 vs. Nation  Apartment Apartment Villa Serena 4-08 $35,825,000 288 $124,392 vs. West Region  Canyon Pointe 6-08 $44,000,000 670 $65,672 vs. Nation = Hotel Holiday Inn 4-08 $15,000,000 110 $136,364 Hotel Econo Lodge 4-08 $5,800,000 130 $44,615 vs. West Region  Compiled by RERC for the RERC/CCIM Investment Trends Quarterly report. vs. Nation  Market Construction/Redevelopment Activity *Comparison of current quarter weighted average capitalization rates. Property New(N)/ Total Sq. Estimated Source: RERC. Type Refurbished(R) Ft./Units Delivery MGM Mirage Retail Center Retail N 500,000 2009 Spencer Street Distribution Industrial N 86,000 2008 Alexan Russell Lofts Multifamily N 168 2009 Crowne Plaza Hotel N 386 2010 PDM Steel Service Center Industrial N 95,000 2009 Sources: CBRE, RE Business.

Investment Trends Copyright© 2008 by Real Estate Research Corporation (RERC) and the CCIM Institute. 137 Quarterly Las Vegas Transaction Breakdown (7/1/07 - 6/30/08) Office Industrial Retail Apartment Hotel < $5 Million Volume (Mil) $93 $163 $127 $41 $13 Size Weighted Avg. ($ per sf/unit) $268 $142 $191 $69,434 $76,171 Price Weighted Avg. ($ per sf/unit) $291 $174 $259 $87,543 $79,405 Las Vegas Median ($ per sf/unit) $278 $162 $202 $67,667 $76,437 > $5 Million Volume (Mil) $646 $288 $768 $557 $9,097 Size Weighted Avg. ($ per sf/unit) $274 $153 $396 $103,994 $600,963 Price Weighted Avg. ($ per sf/unit) $310 $189 $466 $114,406 $1,456,841 Median ($ per sf/unit) $270 $161 $397 $108,066 $247,324 All Transactions Volume (Mil) $739 $450 $894 $598 $9,111 Size Weighted Avg. ($ per sf/unit) $274 $149 $344 $100,596 $594,965 Price Weighted Avg. ($ per sf/unit) $308 $184 $437 $112,583 $1,454,826 Median ($ per sf/unit) $274 $162 $263 $77,587 $244,648 Capitalization Rates (All Transactions) Weighted Average (%) 7.0 6.0 6.2 5.8 6.6 Median (%) 6.7 6.4 6.6 6.0 9.3 Source: RERC.

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

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 Square Foot Historical Median Price per Unit Footnotes: (12 month trailing) – RETAIL (12 month trailing) – APARTMENT 1The upward trend in the graph is partly attributed to a large amount of transac- 2 tions above $400/sf.

2The sharp increase is due in part to the sale of 835 Seven Hills Dr. at $625/sf.

Investment Trends Copyright© 2008 by Real Estate Research Corporation (RERC) and the CCIM Institute. 138 Quarterly Demographics & Economics Last Previous Metro Trend Analysis Population Unemployment Rate (June 2008) Quarter Year Los Angeles MSA 13.4 million Los Angeles2 6.6% Office Los Angeles Growth1 0.83% California2 7.0% Size-Weighted Average PPSF   1 2 National Growth 1.23% National 5.5% Weighted Average Cap Rate =  Household Income & Value Industrial eles Per Capita Income $28,581 2008 Households 4.3 million Size-Weighted Average PPSF   1-year Job Growth 0.70% Household Growth 0.71% Weighted Average Cap Rate = 

g 1-year Job Additions 38,100 Median Home Price $525,449 Major Employers Retail UCLA Size-Weighted Average PPSF   University of Southern California Weighted Average Cap Rate = = Los Angeles Police Department Apartment Women & Childrens Hospital Size-Weighted Average PPU   Kaiser Foundation Hospital Weighted Average Cap Rate =  Sources: Bureau of Labor Statistics, NAR, STDB Online. “Home Price Analysis Report for Los Angeles Region – 2007” ©2006 NATIONAL ASSOCIATION OF REAL- Hotel TORS®. 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. Weighted Average Cap Rate   Noteworthy Transactions Los An Sale Date Sale Price Sq. Ft./Units PPSF/PPU Metro Cap Rate Comparison* Current Quarter Office Office 5161 Lankershim Blvd. 6-08 $52,000,000 178,317 $292 vs. West Region  6100 Wilshire Blvd. 6-08 $73,000,000 203,960 $358 vs. Nation  Industrial Industrial 11905 Landon Dr. 5-08 $55,500,000 645,311 $86 5200 S. Alameda St. 5-08 $29,000,000 125,643 $231 vs. West Region  Retail vs. Nation  2797 S. Diamond Bar Blvd. 5-08 $50,000,000 157,408 $318 Retail 3560-3670 Grand Ave. 5-08 $47,200,000 96,959 $487 vs. West Region  Apartment vs. Nation  Westlake Village 4-08 $68,500,000 253 $270,751 Apartment Brookstone Apartments 4-08 $31,600,000 184 $171,739 vs. West Region  Hotel Westin Century Plaza Hotel 6-08 $366,500,000 726 $504,821 vs. Nation  Hyatt Valencia 5-08 $55,000,000 244 $225,410 Hotel Compiled by RERC for the RERC/CCIM Investment Trends Quarterly report. vs. West Region  Market Construction/Redevelopment Activity vs. Nation  Property New(N)/ Total Sq. Estimated *Comparison of current quarter weighted average capitalization rates. Type Refurbished(R) Ft./Units Delivery Source: RERC. LA Live Mixed Use N 4,000,000 2010 Grand Avenue Project Mixed Use N 3,800,000 2010 Dr. Pepper Snapple Industrial N 850,000 2010 Village at Playa Vista Retail N 150,000 2009 Brea Shopping Center Retail R 351,982 2009 Sources: CBRE, RE Business.

Investment Trends Copyright© 2008 by Real Estate Research Corporation (RERC) and the CCIM Institute. 139 Quarterly Los Angeles Transaction Breakdown (7/1/07 - 6/30/08) Office Industrial Retail Apartment Hotel < $5 Million Volume (Mil) $585 $1,255 $830 $1,381 $47 Size Weighted Avg. ($ per sf/unit) $218 $130 $209 $121,765 $55,339 Los Angeles Price Weighted Avg. ($ per sf/unit) $284 $159 $296 $140,647 $77,006 Median ($ per sf/unit) $237 $145 $203 $116,667 $81,726 > $5 Million Volume (Mil) $7,707 $3,535 $2,283 $6,062 $2,093 Size Weighted Avg. ($ per sf/unit) $315 $126 $268 $236,395 $223,371 Price Weighted Avg. ($ per sf/unit) $371 $184 $534 $290,437 $322,476 Median ($ per sf/unit) $287 $123 $338 $183,913 $151,207 All Transactions Volume (Mil) $8,292 $4,790 $3,113 $7,443 $2,140 Size Weighted Avg. ($ per sf/unit) $306 $127 $249 $201,243 $209,488 Price Weighted Avg. ($ per sf/unit) $365 $178 $471 $262,644 $317,119 Median ($ per sf/unit) $262 $140 $241 $126,364 $116,667 Capitalization Rates (All Transactions) Weighted Average (%) 5.3 5.6 5.9 5.2 8.1 Median (%) 5.8 5.8 6.1 5.3 8.0 Source: RERC.

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

Investment Trends Copyright© 2008 by Real Estate Research Corporation (RERC) and the CCIM Institute. 140 Quarterly Demographics & Economics Last Previous Metro Trend Analysis Population Unemployment Rate (June 2008) Quarter Year Phoenix MSA 4.4 million Phoenix2 4.3% Office Phoenix Growth1 3.68% Arizona2 5.0% Size-Weighted Average PPSF   1 2 National Growth 1.23% National 5.5% Weighted Average Cap Rate = = Household Income & Value Industrial Per Capita Income $29,042 2008 Households 1.6 million Size-Weighted Average PPSF   1-year Job Growth 2.90% Household Growth 3.60% Weighted Average Cap Rate =  1-year Job Additions 54,100 Median Home Price $228,018 Major Employers Retail Phoenix Sky Harbor International Airport Size-Weighted Average PPSF   Intermodal Transportation Division Weighted Average Cap Rate   Barrow Neurological Institute Phoenix Apartment Deer Valley Unified School District Size-Weighted Average PPU   Honeywell Aerospace Weighted Average Cap Rate   Sources: Bureau of Labor Statistics, NAR, STDB Online. “Home Price Analysis Report for Phoenix Region – 2007” ©2006 NATIONAL ASSOCIATION OF REAL- Hotel TORS®. 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. West Region  Hayden Ferry Lakeside vs. Nation  Tower II 6-08 $92,500,000 299,540 $309 US Bank Center 5-08 $66,300,000 371,727 $178 Industrial Industrial vs. West Region  Buckeye One 6-08 $43,600,000 604,678 $72 vs. Nation  651 N. 101st. Ave. 4-08 $13,400,000 67,204 $199 Retail Retail vs. West Region  Home Depot 4-08 $21,400,000 127,532 $168 vs. Nation  Crossroads Plaza 6-08 $14,700,000 112,619 $131 Apartment Apartment Deer Valley Village 4-08 $85,200,000 832 $102,404 vs. West Region  301 Lauberge Lane 5-08 $39,800,000 96 $414,583 vs. Nation = Compiled by RERC for the RERC/CCIM Investment Trends Quarterly report. Hotel Market Construction/Redevelopment Activity vs. West Region  Property New(N)/ Total Sq. Estimated Type Refurbished(R) Ft./Units Delivery vs. Nation  Gilbert Spectrum *Comparison of current quarter weighted average capitalization rates. Source: RERC. Center Mixed Use N 56,000 2009 Mesa Riverview Mixed Use N 10,889,865 2015 Dear Valley Medical Office Office N 75,000 2009 CityScape Center Mixed Use N 2,500,000 2009 Tanger Factory Outlet Ctr. Retail N 330,000 2010 Sources: CBRE, RE Business.

Investment Trends Copyright© 2008 by Real Estate Research Corporation (RERC) and the CCIM Institute. 141 Quarterly Phoenix Transaction Breakdown (7/1/07 - 6/30/08) Office Industrial Retail Apartment Hotel < $5 Million Volume (Mil) $372 $449 $336 $120 $11 Size Weighted Avg. ($ per sf/unit) $147 $90 $149 $58,434 $37,066 Price Weighted Avg. ($ per sf/unit) $198 $110 $217 $63,804 $38,978 Phoenix Median ($ per sf/unit) $154 $97 $154 $56,951 $41,379 > $5 Million Volume (Mil) $2,918 $1,909 $990 $1,832 $746 Size Weighted Avg. ($ per sf/unit) $204 $89 $158 $97,309 $190,778 Price Weighted Avg. ($ per sf/unit) $235 $113 $213 $115,362 $273,714 Median ($ per sf/unit) $190 $112 $225 $89,773 $104,632 All Transactions Volume (Mil) $3,290 $2,359 $1,326 $1,951 $757 Size Weighted Avg. ($ per sf/unit) $195 $89 $156 $93,497 $179,757 Price Weighted Avg. ($ per sf/unit) $230 $113 $214 $112,202 $270,243 Median ($ per sf/unit) $167 $103 $175 $70,999 $79,564 Capitalization Rates (All Transactions) Weighted Average (%) 6.4 6.8 6.7 5.8 4.0 Median (%) 7.0 6.7 6.8 6.0 8.6 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.

Historical Median Price per Square Foot Historical Median Price per Unit Footnotes: (12 month trailing) – RETAIL (12 month trailing) – APARTMENT 1This low point on the graph was caused by lower PPSF sale activity.

Investment Trends Copyright© 2008 by Real Estate Research Corporation (RERC) and the CCIM Institute. 142 Quarterly Demographics & Economics Last Previous Metro Trend Analysis Population Unemployment Rate (June 2008) Quarter Year Portland MSA 2.2 million Portland2 5.3% Office Portland Growth1 1.78% Oregan2 5.5% Size-Weighted Average PPSF   1 2 National Growth 1.23% National 5.5% Industrial Household Income & Value Size-Weighted Average PPSF   Per Capita Income $30,398 2008 Households 847,003 Retail 1-year Job Growth 1.50% Household Growth 1.74% Size-Weighted Average PPSF   1-year Job Additions 15,500 Median Home Price $323,456 Major Employers Weighted Average Cap Rate =  University Hospital Clinics Apartment Portland Community College Size-Weighted Average PPU   Portland International Airport-PDX Weighted Average Cap Rate =  U.S. Post Office Portland Hotel Trimet Size-Weighted Average PPU   Sources: Bureau of Labor Statistics, NAR, STDB Online. “Home Price Analysis Report for Portland Region – 2007” ©2006 NATIONAL ASSOCIATION OF REAL- * TORS®. Used with permission. Reproduction, reprinting, or retransmission of this document in any form Metro Cap Rate Comparison Current Quarter (electronic media included) is prohibited without written permission. 1Projected annual growth over 5 years (2007-2012). 2Rates are non-seasonally adjusted. Industrial Noteworthy Transactions vs. West Region  Sale Date Sale Price Sq. Ft./Units PPSF/PPU vs. Nation  Office Retail Fanno Creek Place Bldg. B 5-08 $12,100,000 51,110 $237 vs. West Region  3300 NW Marine Dr. 6-08 $5,200,000 67,500 $77 vs. Nation  Industrial Apartment 6008-6014 NE 112th Ave. 4-08 $23,960,000 290,000 $83 14811-15009 vs. West Region  NE Airport Way 4-08 $14,400,000 187,051 $77 vs. Nation 

Retail *Comparison of current quarter weighted average capitalization rates. Menlo Park Plaza 5-08 $19,150,000 112,775 $170 Source: RERC. Fred Meyer 5-08 $11,000,000 98,966 $111 Apartment Birch Pointe 4-08 $24,250,000 246 $98,577 Arnada Pointe 6-08 $16,900,000 200 $84,500 Hotel Days Inn 5-08 $8,600,000 110 $78,182 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 General Automotive Bldg. Office/Retail R 44,500 N/A LA Fitness Inc. Retail R 55,000 N/A Gerding Edlen Office R 200,000 2009 Sources: CBRE, RE Business.

Investment Trends Copyright© 2008 by Real Estate Research Corporation (RERC) and the CCIM Institute. 143 Quarterly Portland Transaction Breakdown (7/1/07 - 6/30/08) Office Industrial Retail Apartment Hotel < $5 Million Volume (Mil) $48 $89 $44 $148 – Size Weighted Avg. ($ per sf/unit) $137 $83 $155 $67,790 – Price Weighted Avg. ($ per sf/unit) $169 $103 $188 $72,192 – Portland Median ($ per sf/unit) $143 $84 $146 $67,396 – > $5 Million Volume (Mil) $818 $265 $266 $710 $59 Size Weighted Avg. ($ per sf/unit) $250 $98 $130 $109,745 $98,595 Price Weighted Avg. ($ per sf/unit) $327 $127 $149 $126,339 $113,254 Median ($ per sf/unit) $171 $100 $148 $96,665 $110,385 All Transactions Volume (Mil) $866 $355 $310 $858 $66 Size Weighted Avg. ($ per sf/unit) $239 $93 $133 $99,150 $86,202 Price Weighted Avg. ($ per sf/unit) $318 $121 $155 $116,989 $105,807 Median ($ per sf/unit) $160 $84 $148 $77,336 $63,725 Capitalization Rates (All Transactions) Weighted Average (%) – 6.6 6.8 5.6 – Median (%) – 6.6 6.4 5.8 – 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 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. 144 Quarterly Demographics & Economics Last Previous Metro Trend Analysis Population Unemployment Rate (June 2008) Quarter Year Sacramento MSA 2.2 million Sacramento2 6.8% Office Sacramento Growth1 2.23% California2 7.0% Size-Weighted Average PPSF   1 2 National Growth 1.23% National 5.5% Weighted Average Cap Rate   Household Income & Value Industrial Per Capita Income $29,169 2008 Households 793,860 Size-Weighted Average PPSF   1-year Job Growth 1.40% Household Growth 2.23% Weighted Average Cap Rate   1-year Job Additions 12,500 Median Home Price $298,929 Major Employers Retail Sacramento County Water Quality Size-Weighted Average PPSF   Social Services Department Weighted Average Cap Rate   UC Davis Apartment Intel Corporation Size-Weighted Average PPU   Hewlett-Packard Co. Weighted Average Cap Rate   Sources: Bureau of Labor Statistics, NAR, STDB Online. “Home Price Analysis Report for Sacramento Region – 2007” ©2006 NATIONAL ASSOCIATION OF REAL- Hotel TORS®. 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 Sacramento Office vs. West Region  11455 Folsom Blvd. 6-08 $5,600,000 28,000 $200 vs. Nation  801 12th St. 5-08 $9,000,000 50,949 $177 Industrial Industrial vs. West Region  8364 Rovana Circle 5-08 $5,200,000 72,000 $72 Mayhew Tech Center 5-08 $9,000,000 68,639 $131 vs. Nation  Retail Retail College Greens East 6-08 $19,800,000 116,271 $170 vs. West Region  Gibson Plaza 5-08 $24,300,000 88,201 $276 vs. Nation  Apartment Apartment 3405-3509 Balmoral Dr. 4-08 $4,330,000 72 $60,139 vs. West Region  Oaks at Arcade Creek 6-08 $5,400,000 48 $112,500 vs. Nation  Hotel Clarion 6-08 $8,200,000 174 $47,126 Hotel Compiled by RERC for the RERC/CCIM Investment Trends Quarterly report. vs. West Region  Market Construction/Redevelopment Activity vs. Nation 

Property New(N)/ Total Sq. Estimated *Comparison of current quarter weighted average capitalization rates. Type Refurbished(R) Ft./Units Delivery Source: RERC. Valley Hi N. Laguna Library Retail N 20,000 2009 Bank of the West Office N 430,000 2009 E. Natomas Education Ctr. Office N 293,450 2010 Fountains Lifestyle Center Retail N 320,000 2009 Palladio Lifestyle Center Retail N 770,000 2009 Sources: CBRE, RE Business.

Investment Trends Copyright© 2008 by Real Estate Research Corporation (RERC) and the CCIM Institute. 145 Quarterly Sacramento Transaction Breakdown (7/1/07 - 6/30/08) Office Industrial Retail Apartment Hotel < $5 Million Volume (Mil) $73 $71 $79 $52 $20 Size Weighted Avg. ($ per sf/unit) $180 $77 $221 $67,722 $43,873 Sacramento Price Weighted Avg. ($ per sf/unit) $208 $92 $305 $75,059 $58,139 Median ($ per sf/unit) $185 $91 $240 $70,000 $43,860 > $5 Million Volume (Mil) $375 $69 $327 $410 $101 Size Weighted Avg. ($ per sf/unit) $203 $80 $226 $111,909 $129,289 Price Weighted Avg. ($ per sf/unit) $217 $98 $283 $131,726 $143,618 Median ($ per sf/unit) $209 $98 $264 $105,725 $121,071 All Transactions Volume (Mil) $448 $140 $406 $462 $121 Size Weighted Avg. ($ per sf/unit) $199 $79 $225 $104,295 $97,370 Price Weighted Avg. ($ per sf/unit) $215 $95 $287 $125,386 $129,225 Median ($ per sf/unit) $190 $91 $240 $77,889 $75,758 Capitalization Rates (All Transactions) Weighted Average (%) 7.1 6.0 6.4 5.3 8.4 Median (%) 6.6 6.4 6.3 5.5 8.6 Source: RERC.

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

2 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 Historical Median Price per Unit Footnotes: (12 month trailing) – RETAIL (12 month trailing) – APARTMENT 1The sharp decrease is due to a low volume of transactions that sold for a low price per square foot.

2The majority of transactions sold above the historical median price, one being 3344 Swetzer Ct. for $175/sf.

y Population Unemployment Rate (June 2008) Quarter Year Salt Lake City MSA 1.1 million Salt Lake City2 3.4% Office Salt Lake City 1.75% Utah2 3.5% Size-Weighted Average PPSF   Growth1 Industrial National Growth1 1.23% National2 5.5% Size-Weighted Average PPSF   Household Income & Value Per Capita Income $27,026 2008 Households 363,305 Retail 1-year Job Growth 4.50% Household Growth 1.77% Size-Weighted Average PPSF   1-year Job Additions 27,900 Median Home Price $258,891 Weighted Average Cap Rate   Major Employers Apartment University Hospital Size-Weighted Average PPU   Huish Detergents Inc. Weighted Average Cap Rate   OC Tanner Co. * University of Utah Metro Cap Rate Comparison Current Quarter Staker & Parson Co. Industrial Sources: Bureau of Labor Statistics, NAR, STDB Online. vs. West Region  “Home Price Analysis Report for Salt Lake City Region – 2007” ©2006 NATIONAL ASSOCIATION OF REALTORS®. Used with permission. Reproduction, reprinting, or retransmission of this document in any vs. Nation  form (electronic media included) is prohibited without written permission. 1Projected annual growth over 5 years (2007-2012). 2Rates are non-seasonally adjusted. Retail Noteworthy Transactions vs. West Region  Sale Date Sale Price Sq. Ft./Units PPSF/PPU vs. Nation  Office

Salt Lake Cit Apartment Draper Corporate Park 5-08 $17,500,000 152,924 $114 5353 S. 960 E. 5-08 $5,718,750 41,850 $137 vs. West Region  Industrial vs. Nation  Superior Air 6-08 $11,500,000 316,000 $36 *Comparison of current quarter weighted average capitalization rates. Source: RERC. Utah Plastics Facility 4-08 $8,300,000 210,026 $40 Retail 1680 Ute Blvd. #4 4-08 $2,203,125 11,000 $200 4650 S. 3740 W. 4-08 $2,187,500 14,369 $152 Apartment Foothill Place 6-08 $40,800,000 450 $90,667 Somerset Village 6-08 $39,300,000 486 $80,864 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 Cottonwood Mall Retail R 730,000 2010 City Creek Center Mixed Use N N/A 2011 Trolley Square Multifamily R 52 N/A 222 S. Main Office N N/A 2009 Freeport West Landmark Building 4 Industrial N 686,856 N/A Sources: CBRE, RE Business.

Investment Trends Copyright© 2008 by Real Estate Research Corporation (RERC) and the CCIM Institute. 147 Quarterly Salt Lake City Transaction Breakdown (7/1/07 - 6/30/08) Office Industrial Retail Apartment Hotel < $5 Million Volume (Mil) $74 $64 $70 $24 – Size Weighted Avg. ($ per sf/unit) $108 $63 $166 $71,926 – Salt Lake City Price Weighted Avg. ($ per sf/unit) $139 $90 $225 $74,181 – Median ($ per sf/unit) $109 $73 $152 $74,932 – > $5 Million Volume (Mil) $352 $74 $101 $251 – Size Weighted Avg. ($ per sf/unit) $257 $66 $96 $86,006 – Price Weighted Avg. ($ per sf/unit) $303 $98 $118 $88,251 – Median ($ per sf/unit) $174 $67 $104 $86,184 – All Transactions Volume (Mil) $426 $138 $171 $275 – Size Weighted Avg. ($ per sf/unit) $208 $65 $116 $84,553 – Price Weighted Avg. ($ per sf/unit) $275 $94 $162 $87,016 – Median ($ per sf/unit) $122 $73 $146 $80,992 – Capitalization Rates (All Transactions) Weighted Average (%) – 6.5 7.5 6.9 – Median (%) – 6.4 7.4 5.8 – Source: RERC.

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

Investment Trends Copyright© 2008 by Real Estate Research Corporation (RERC) and the CCIM Institute. 148 Quarterly Demographics & Economics Last Previous Metro Trend Analysis Population Unemployment Rate (June 2008) Quarter Year o San Diego MSA 3.1 million San Diego2 5.9% Office San Diego Growth1 0.73% California2 7.0% Size-Weighted Average PPSF  

g 1 2 National Growth 1.23% National 5.5% Weighted Average Cap Rate = = Household Income & Value Industrial Per Capita Income $30,003 2008 Households 1.1 million Size-Weighted Average PPSF   1-year Job Growth 0.90% Household Growth 0.72% Weighted Average Cap Rate =  1-year Job Additions 11,900 Median Home Price $426,277 Major Employers Retail 32nd St. Naval Station Size-Weighted Average PPSF   Sharp Memorial Hospital Weighted Average Cap Rate = = City of San Diego Apartment County of San Diego Size-Weighted Average PPU   Scripps Health Weighted Average Cap Rate   Sources: Bureau of Labor Statistics, NAR, STDB Online. “Home Price Analysis Report for San Diego Region – 2007” ©2006 NATIONAL ASSOCIATION OF REAL- Hotel TORS®. Used with permission. Reproduction, reprinting, or retransmission of this document in any form

San Die(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. West Region  Crossroads Office Park 6-08 $34,200,000 139,000 $246 vs. Nation  Genesse Executive Plaza 6-08 $56,000,000 155,820 $359 Industrial Industrial Mesa Distributing 5-08 $25,600,000 180,000 $142 vs. West Region  6200 Miramar Rd. 4-08 $16,000,000 100,638 $159 vs. Nation  Retail Retail Coco’s Restaurants 6-08 $5,500,000 19,026 $289 vs. West Region  Bonnie Brae Center 6-08 $13,900,000 53,500 $260 vs. Nation  Apartment Apartment Villa Nueva LP 5-08 $41,200,000 390 $105,641 Montecito Point 5-08 $17,500,000 72 $243,056 vs. West Region = Hotel vs. Nation  Marriott Residence 5-08 $34,364,261 125 $274,914 *Comparison of current quarter weighted average capitalization rates. Source: RERC. Residence Inn 5-08 $28,800,000 125 $230,400 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 The Nolen Office N N/A 2009 Merrill Gardens at Bankers Hill Multifamily N 84 2009 Quail Garden Corporate Center Office N 33,000 2009 Building 902 Office N 104,397 2009 Aquatera Multifamily N 254 2009 Sources: CBRE, RE Business. Investment Trends Copyright© 2008 by Real Estate Research Corporation (RERC) and the CCIM Institute. 149 Quarterly San Diego Transaction Breakdown (7/1/07 - 6/30/08) Office Industrial Retail Apartment Hotel < $5 Million Volume (Mil) $117 $236 $137 $165 $21 Size Weighted Avg. ($ per sf/unit) $193 $137 $222 $113,190 $87,643 Price Weighted Avg. ($ per sf/unit) $222 $157 $304 $120,275 $89,371 San Diego Median ($ per sf/unit) $218 $152 $212 $112,333 $82,692 > $5 Million Volume (Mil) $2,696 $1,060 $764 $1,253 $136 Size Weighted Avg. ($ per sf/unit) $367 $182 $235 $165,629 $128,446 Price Weighted Avg. ($ per sf/unit) $465 $243 $353 $198,431 $156,407 Median ($ per sf/unit) $310 $170 $289 $131,250 $117,241 All Transactions Volume (Mil) $2,813 $1,296 $901 $1,419 $157 Size Weighted Avg. ($ per sf/unit) $354 $172 $233 $157,139 $120,887 Price Weighted Avg. ($ per sf/unit) $455 $227 $346 $189,316 $147,404 Median ($ per sf/unit) $256 $161 $223 $118,580 $100,000 Capitalization Rates (All Transactions) Weighted Average (%) 5.8 6.2 6.1 5.5 – Median (%) 6.3 6.4 5.8 5.5 – Source: RERC.

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

Investment Trends Copyright© 2008 by Real Estate Research Corporation (RERC) and the CCIM Institute. 150 Quarterly Demographics & Economics Last Previous Metro Trend Analysis Population Unemployment Rate (June 2008) Quarter Year San Francisco MSA 4.3 million San Francisco2 5.7% Office San Francisco Growth1 0.54% California2 7.0% Size-Weighted Average PPSF   1 2 National Growth 1.23% National 5.5% Weighted Average Cap Rate   Household Income & Value Industrial Per Capita Income $43,703 2008 Households 1.6 million Size-Weighted Average PPSF   1-year Job Growth 1.60% Household Growth 0.46% Weighted Average Cap Rate   1-year Job Additions 31,700 Median Home Price $652,444 Major Employers Retail Pacific Telesis Group Size-Weighted Average PPSF   UPS Supply Chain Solutions Weighted Average Cap Rate =  California State Automobile Apartment San Francisco State University Size-Weighted Average PPU   UCSF Medical Center Weighted Average Cap Rate   Sources: Bureau of Labor Statistics, NAR, STDB Online. “Home Price Analysis Report for San Francisco Region – 2007” ©2006 NATIONAL ASSOCIATION OF Hotel 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. West Region  1000 Burnett Ave. 4-08 $42,750,000 173,148 $247 vs. Nation 

San Francisco500 Terry Francois Blvd. 6-08 $149,000,000 291,000 $512 Industrial Industrial vs. West Region = 2100, 2500, & 2900 Atlas Rd. 4-08 $51,790,000 474,754 $109 vs. Nation  615 Tasman Dr. 4-08 $24,000,000 106,688 $225 Retail Retail vs. West Region  555 Rohnert Park Expy. W 6-08 $21,927,200 131,581 $167 vs. Nation  117 Post St. 4-08 $17,500,000 24,408 $717 Apartment Apartment Nob Hill Tower 4-08 $37,200,000 72 $516,667 vs. West Region  745 S. Bernardo Ave. 4-08 $33,150,000 147 $225,510 vs. Nation  Compiled by RERC for the RERC/CCIM Investment Trends Quarterly report. *Comparison of current quarter weighted average capitalization rates. Source: RERC. Market Construction/Redevelopment Activity Property New(N)/ Total Sq. Estimated Type Refurbished(R) Ft./Units Delivery Millennium Tower Multifamily N N/A 2009 Charters Lodging Group Hotel R 4,867 N/A Jack London Market Mixed Use N 170,000 2009 188 Spear St. Office R 253,000 N/A Stanford Hospital Outpatient Service Office R 360,504 2008 Sources: CBRE, RE Business.

Investment Trends Copyright© 2008 by Real Estate Research Corporation (RERC) and the CCIM Institute. 151 Quarterly San Francisco Transaction Breakdown (7/1/07 - 6/30/08) Office Industrial Retail Apartment Hotel < $5 Million Volume (Mil) $242 $335 $281 $404 $16 Size Weighted Avg. ($ per sf/unit) $199 $123 $229 $142,658 $72,419 San Francisco Price Weighted Avg. ($ per sf/unit) $247 $151 $305 $164,921 $106,442 Median ($ per sf/unit) $221 $143 $222 $139,853 $62,321 > $5 Million Volume (Mil) $9,860 $1,464 $934 $3,126 $1,436 Size Weighted Avg. ($ per sf/unit) $395 $139 $229 $227,858 $260,793 Price Weighted Avg. ($ per sf/unit) $510 $210 $351 $251,858 $327,297 Median ($ per sf/unit) $282 $140 $348 $200,730 $126,271 All Transactions Volume (Mil) $10,102 $1,799 $1,215 $3,530 $1,452 Size Weighted Avg. ($ per sf/unit) $386 $136 $229 $213,267 $253,651 Price Weighted Avg. ($ per sf/unit) $504 $199 $340 $241,898 $324,906 Median ($ per sf/unit) $261 $141 $245 $154,706 $117,588 Capitalization Rates (All Transactions) Weighted Average (%) 4.9 6.1 6.2 5.7 – Median (%) 5.3 6.6 5.9 5.1 – Source: RERC.

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

Investment Trends Copyright© 2008 by Real Estate Research Corporation (RERC) and the CCIM Institute. 152 Quarterly Demographics & Economics Last Previous Metro Trend Analysis Population Unemployment Rate (June 2008) Quarter Year Seattle MSA 3.4 million Seattle2 4.5% Office Seattle Growth1 1.40% Washington2 5.4% Size-Weighted Average PPSF   1 2 National Growth 1.23% National 5.5% Weighted Average Cap Rate  = Household Income & Value Industrial Per Capita Income $35,894 2008 Households 1.3 million Size-Weighted Average PPSF   1-year Job Growth 3.40% Household Growth 1.45% Weighted Average Cap Rate =  1-year Job Additions 57,600 Median Home Price $363,189 Major Employers Retail University of Washington Size-Weighted Average PPSF  

Seattle Swedish Medical Center Weighted Average Cap Rate   University of Washington OB/GYN Apartment Virginia Mason Nutrition Specialist Size-Weighted Average PPU   Varilite Weighted Average Cap Rate   Sources: Bureau of Labor Statistics, NAR, STDB Online. “Home Price Analysis Report for Seattle Region – 2007” ©2006 NATIONAL ASSOCIATION OF REAL- Hotel TORS®. 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. West Region = 1424 4th Ave. 4-08 $25,175,000 132,326 $190 vs. Nation  Meridian Medical Building 5-08 $10,500,000 30,900 $340 Industrial Industrial vs. West Region  Auburn Park 44 5-08 $17,800,000 204,458 $87 Quadrant Willows vs. Nation  Corporate Ctr. 4-08 $18,500,000 65,080 $284 Retail Retail vs. West Region  15111 Main St. 5-08 $18,100,000 54,926 $330 vs. Nation  13300 NE 175th St. 4-08 $14,000,000 41,584 $337 Apartment Apartment Hearthston at Merril Creek 5-08 $38,000,000 220 $172,727 vs. West Region  Avalon Redmond 6-08 $81,300,000 400 $203,250 vs. Nation  Compiled by RERC for the RERC/CCIM Investment Trends Quarterly report. Hotel Market Construction/Redevelopment Activity vs. West Region  Property New(N)/ Total Sq. Estimated Type Refurbished(R) Ft./Units Delivery vs. Nation  South Lake Union Office N 75,000 2011 *Comparison of current quarter weighted average capitalization rates. Source: RERC. 7th and Madison Office N 204,000 2009 Olive 8 Hotel N 350 2009 The Summit III Office N 350,000 2009 Chehalis I-5 Corporate Park Office N 1,200,000 N/A Sources: CBRE, RE Business.

Investment Trends Copyright© 2008 by Real Estate Research Corporation (RERC) and the CCIM Institute. 153 Quarterly Seattle Transaction Breakdown (7/1/07 - 6/30/08) Office Industrial Retail Apartment Hotel < $5 Million Volume (Mil) $257 $275 $269 $328 $14 Size Weighted Avg. ($ per sf/unit) $188 $115 $189 $93,720 $69,960 Price Weighted Avg. ($ per sf/unit) $238 $143 $262 $110,458 $93,005 Seattle Median ($ per sf/unit) $203 $119 $198 $97,727 $53,473 > $5 Million Volume (Mil) $2,198 $986 $606 $1,791 $463 Size Weighted Avg. ($ per sf/unit) $249 $126 $257 $126,074 $205,770 Price Weighted Avg. ($ per sf/unit) $289 $163 $347 $154,376 $299,357 Median ($ per sf/unit) $261 $124 $264 $129,227 $132,873 All Transactions Volume (Mil) $2,456 $1,261 $875 $2,119 $477 Size Weighted Avg. ($ per sf/unit) $241 $124 $232 $119,680 $194,476 Price Weighted Avg. ($ per sf/unit) $283 $158 $321 $147,580 $293,183 Median ($ per sf/unit) $227 $120 $204 $107,000 $129,147 Capitalization Rates (All Transactions) Weighted Average (%) 5.5 5.6 5.9 5.3 9.3 Median (%) 5.8 6.3 6.4 5.4 8.6 Source: RERC.

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

Investment Trends Copyright© 2008 by Real Estate Research Corporation (RERC) and the CCIM Institute. 154 Quarterly Demographics & Economics Last Previous Metro Trend Analysis Population Unemployment Rate (June 2008) Quarter Year Tucson MSA 1.0 million Tucson2 4.8% Office Tucson Growth1 2.38% Arizona2 5.0% Size-Weighted Average PPSF   1 2 National Growth 1.23% National 5.5% Weighted Average Cap Rate   Household Income & Value Industrial Per Capita Income $26,467 2008 Households 394,803 Size-Weighted Average PPSF   1-year Job Growth 2.60% Household Growth 2.42% Weighted Average Cap Rate  – 1-year Job Additions 9,600 Median Home Price $186,086 Major Employers Retail University of Arizona Size-Weighted Average PPSF   Tucson University Medical Center Apartment Southwest Emergency Association Size-Weighted Average PPU   Tucson Medical Center Weighted Average Cap Rate   Raytheon Missle System Hotel Sources: Bureau of Labor Statistics, NAR, STDB Online. “Home Price Analysis Report for Tucson Region – 2007” ©2006 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. West Region  Office vs. Nation  Rooney Ranch Industrial Professional 6-08 $9,700,000 35,453 $274 Academy Medical Center 6-08 $8,100,000 41,221 $197 vs. West Region  Industrial vs. Nation  3162 N. Freeway Retail Industrial Loop 6-08 $2,100,000 17,586 $119 vs. West Region  6781 E. Outlook Dr. 5-08 $2,000,000 15,000 $133 vs. Nation  Retail Old Spanish Trail Apartment Marketplace 5-08 $33,100,000 140,652 $235 vs. West Region  Wal-Mart 6-08 $12,000,000 203,101 $59 vs. Nation  Apartment Hotel Stonybrook Apartments 6-08 $19,500,000 411 $47,445 vs. West Region  Quail Ridge Apartments 6-08 $13,200,000 253 $52,174  Compiled by RERC for the RERC/CCIM Investment Trends Quarterly report. vs. Nation *Comparison of current quarter weighted average capitalization rates. Source: RERC.

Investment Trends Copyright© 2008 by Real Estate Research Corporation (RERC) and the CCIM Institute. 155 Quarterly Tucson Transaction Breakdown (7/1/07 - 6/30/08) Office Industrial Retail Apartment Hotel < $5 Million Volume (Mil) $51 $69 $47 $32 – Size Weighted Avg. ($ per sf/unit) $137 $80 $147 $54,676 – Price Weighted Avg. ($ per sf/unit) $173 $88 $203 $70,935 – Tucson Median ($ per sf/unit) $151 $81 $117 $50,962 – > $5 Million Volume (Mil) $200 $118 $88 $179 $280 Size Weighted Avg. ($ per sf/unit) $145 $86 $149 $56,152 $209,307 Price Weighted Avg. ($ per sf/unit) $174 $96 $215 $64,987 $302,519 Median ($ per sf/unit) $176 $81 $235 $44,565 $128,793 All Transactions Volume (Mil) $251 $188 $134 $212 $288 Size Weighted Avg. ($ per sf/unit) $144 $84 $149 $55,923 $181,325 Price Weighted Avg. ($ per sf/unit) $174 $93 $211 $65,892 $294,950 Median ($ per sf/unit) $154 $81 $126 $47,445 $118,347 Capitalization Rates (All Transactions) Weighted Average (%) 7.3 7.2 6.9 6.5 8.7 Median (%) 7.0 7.0 6.7 6.5 8.6 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 increase was due in part to the sale of 3835 W. River Rd. for $304/sf.