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 candidates and designees who responded to year, while one-fourth of respondents expect the economy RERC’s survey rated the East region’s economic perfor- to perform better during the next year. mance at 4.4 on a scale of 1 to 10, with 10 being high, during first quarter 2009. This rating was a slight increase n Along with lower volume of property sales, RERC’s trans- from the previous quarter’s rating, and tied the East region action analysis for the East region showed declining pric- with the Midwest for the highest ratings among the four es and increasing capitalization rates during first quarter regions. 2009. n Nearly two-thirds of the CCIM respondents expect the East regional economy to perform the same over the coming

East Transaction Breakdown 12-Month Trailing Averages (04/01/08 - 03/31/09) Office Industrial Retail Apartment Hotel < $2 Million Volume (Mil) $498 $798 $1,012 $224 $15 Size Weighted Avg. ($ per sf/unit) $76 $47 $82 $55,932 $27,261 Price Weighted Avg. ($ per sf/unit) $114 $79 $128 $72,734 $42,822 Median ($ per sf/unit) $84 $56 $85 $62,500 $29,808 $2 - $5 Million Volume (Mil) $659 $1,172 $1,208 $765 $97 Size Weighted Avg. ($ per sf/unit) $114 $59 $123 $79,938 $37,844 Price Weighted Avg. ($ per sf/unit) $195 $108 $242 $119,362 $50,017 Median ($ per sf/unit) $143 $77 $185 $97,428 $40,806 > $5 Million Volume (Mil) $25,624 $4,020 $4,126 $8,371 $1,838 Size Weighted Avg. ($ per sf/unit) $371 $72 $160 $134,075 $147,936 Price Weighted Avg. ($ per sf/unit) $721 $118 $315 $329,584 $245,680 Median ($ per sf/unit) $193 $80 $212 $108,696 $106,571 All Transactions Volume (Mil) $26,781 $5,991 $6,345 $9,360 $1,949 Size Weighted Avg. ($ per sf/unit) $329 $65 $133 $123,140 $125,599 Price Weighted Avg. ($ per sf/unit) $697 $111 $271 $306,252 $234,440 Median ($ per sf/unit) $118 $65 $115 $90,689 $78,431 Capitalization Rates (All Transactions) Range (%) 2.2 - 9.5 6.0 - 8.0 5.7 - 9.5 4.5 - 7.4 – Weighted Avg. (%) 7.1 7.2 7.7 6.7 – Median (%) 7.3 7.7 7.8 7.0 – Source: RERC.

Boston – Charlotte – Northern New Jersey – “Most savvy investors are in a wait- “There is discounting of all property “Invest in the best located property in any and-hold position. Leasing activity is types (primarily during negotiations) to sector. It will be the first to recover, and slow, and lack of comparables exists to prices below that justified by net income. should recover stronger. Buy quality.” estimate fair market.” This is creating value acquisitions for savvy investors with patient money.”

East Transaction Breakdown Current Quarter Rates (01/01/09 - 03/31/09) Office Industrial Retail Apartment Hotel < $2 Million Volume (Mil) $98 $119 $111 $4 – Size Weighted Avg. ($ per sf/unit) $70 $56 $57 $44,495 – Price Weighted Avg. ($ per sf/unit) $110 $96 $99 $55,859 – Median ($ per sf/unit) $66 $65 $55 $47,083 – $2 - $5 Million Volume (Mil) $116 $217 $170 $48 – Size Weighted Avg. ($ per sf/unit) $96 $70 $99 $77,404 – Price Weighted Avg. ($ per sf/unit) $226 $112 $190 $122,244 – Median ($ per sf/unit) $127 $95 $130 $103,971 – > $5 Million Volume (Mil) $1,101 $438 $551 $214 $148 Size Weighted Avg. ($ per sf/unit) $193 $72 $107 $79,501 $112,452 Price Weighted Avg. ($ per sf/unit) $303 $113 $369 $103,671 $182,063 Median ($ per sf/unit) $147 $74 $147 $91,919 $76,056 All Transactions Volume (Mil) $1,314 $775 $832 $267 $149 Size Weighted Avg. ($ per sf/unit) $158 $68 $94 $78,101 $104,907 Price Weighted Avg. ($ per sf/unit) $282 $110 $297 $106,257 $180,478 Median ($ per sf/unit) $94 $76 $83 $92,390 $59,712 Capitalization Rates (All Transactions) Range (%) – – 6.4 - 9.5 6.8 - 7.4 – Weighted Avg. (%) – – 8.0 7.3 – Median (%) – – 8.2 7.1 – Source: RERC.

RERC Weighted Avg. Cap Rate - 1Q 2009 10% 10% East U.S. Total Avg. Capitalization Rate 8% 8% n The 12-month trailing average volume of transactions declined by nearly 20 percent for the East office sector dur- 6% 6% ing first quarter 2009. The size-weighted and median price per square foot of office space declined from the previous

4% 4% quarter, while the price-weighted average increased.

n The 12-month trailing weighted average capitalization rate 2% 2% for the office sector increased to 7.1 percent and the median capitalization rate increased by 30 basis points to 7.3 Baltimore Boston Charlotte New York Norfolk Northern NJ Philadelphia Washington, D.C. percent.

RERC Size-Weighted Avg. PPSF - 1Q 2009 RERC Price-Weighted Avg. PPSF - 1Q 2009 $700 $700 $1000 $1000 East East U.S. Total U.S. Total $600 $600 Price-Weighted Average PPSF Size-Weighted Average PPSF $800 $800 $500 $500

$400 $400 $600 $600

$300 $300 $400 $400 $200 $200 $200 $200 $100 $100

$0 $0 $0 $0

East Office Transactions (04/01/08 - 03/31/09) Volume Size-weighted Price-weighted Median Average (millions) Average ($/sf) Average ($/sf) ($/sf) Cap Rate (%) Baltimore $472 $187 $228 $116 6.4 Boston $1,601 $193 $344 $139 5.9 Charlotte $286 $121 $128 $121 7.7 Hartford $97 $66 $97 $96 – New York $12,326 $581 $877 $227 4.7 Norfolk $141 $114 $121 $98 8.2 Northern NJ $1,118 $222 $276 $153 6.2 Philadelphia $849 $120 $146 $116 6.4 Pittsburgh $119 $76 $164 $61 – Raleigh $428 $148 $163 $128 – Richmond $227 $121 $154 $88 – Washington, D.C. $3,752 $408 $515 $285 6.1 East Total $26,781 $329 $697 $118 7.1 U.S. Total $52,458 $233 $479 $134 7.1 Source: RERC.

RERC Weighted Avg. Cap Rate - 1Q 2009 10% 10% East U.S. Total Avg. Capitalization Rate 8% 8% n The East industrial sector remained relatively stable as compared to the other property types during first quar- 6% 6% ter 2009. The 12-month trailing sales volume declined by more than 15 percent from the previous quarter. The size-

4% 4% weighted average and median price per square foot remained stable, while the price-weighted average declined slightly. 2% 2% n The weighted average and median capitalization rates for Baltimore New York Washington, D.C. the East regional industrial sector increased by 10 and 50 basis points, respectively.

RERC Size-Weighted Avg. PPSF - 1Q 2009 RERC Price-Weighted Avg. PPSF - 1Q 2009 $150 $150 $200 $200 East East U.S. Total U.S. Total $125 $125 Price-Weighted Average PPSF Size-Weighted Average PPSF $150 $150

$100 $100 $100 $100 $75 $75

$50 $50 $50 $50

$25 $25 $0 $0

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

East Industrial Transactions (04/01/08 - 03/31/09) Volume Size-weighted Price-weighted Median Average (millions) Average ($/sf) Average ($/sf) ($/sf) Cap Rate (%) Baltimore $404 $69 $103 $62 7.0 Boston $675 $75 $145 $74 – Charlotte $281 $59 $94 $57 – Hartford $161 $63 $83 $49 – New York $953 $111 $166 $115 5.9 Norfolk $54 $74 $104 $71 – Northern NJ $466 $79 $92 $78 – Philadelphia $533 $74 $99 $65 – Pittsburgh $50 $29 $45 $35 – Raleigh $118 $62 $85 $70 – Richmond $43 $37 $84 $48 – Washington, D.C. $437 $132 $157 $118 7.5 East Total $5,991 $65 $111 $65 7.2 U.S. Total $22,914 $71 $130 $73 7.5 Source: RERC.

RERC Weighted Avg. Cap Rate - 1Q 2009

9.0% East 9.0% U.S. Total 8.5% 8.5% Avg. Capitalization Rate 8.0% 8.0% n The 12-month trailing sales volume in the East regional

7.5% 7.5% retail sector declined by more than 15 percent during first quarter 2009. 7.0% 7.0%

6.5% 6.5% n The first quarter 2009 average and median prices per 6.0% 6.0% square foot of retail property declined from the previous 5.5% 5.5% quarter. In addition, the weighted average and median 5.0% 5.0% capitalization rates for the retail sector increased by 40 basis points and 80 basis points, respectively.

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

RERC Size-Weighted Avg. PPSF - 1Q 2009 RERC Price-Weighted Avg. PPSF - 1Q 2009 $300 $300 $550 $550 East East U.S. Total U.S. Total $250 $250 Size-Weighted Average PPSF $450 $450 Price-Weighted Average PPSF $200 $200 $350 $350 $150 $150 $250 $250 $100 $100

$150 $150 $50 $50

$0 $0 $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 (04/01/08 - 03/31/09) Volume Size-weighted Price-weighted Median Average (millions) Average ($/sf) Average ($/sf) ($/sf) Cap Rate (%) Baltimore $219 $166 $207 $149 7.6 Boston $352 $106 $229 $116 6.9 Charlotte $314 $127 $172 $91 7.5 Hartford $135 $81 $118 $75 8.5 New York $1,709 $243 $477 $207 7.0 Norfolk $87 $121 $162 $81 8.5 Northern NJ $401 $161 $197 $145 6.9 Philadelphia $267 $136 $195 $100 7.7 Pittsburgh $57 $147 $274 $89 6.5 Raleigh $212 $140 $204 $125 8.1 Richmond $56 $116 $172 $136 – Washington, D.C. $311 $216 $340 $173 7.4 East Total $6,345 $133 $271 $115 7.7 U.S. Total $25,529 $141 $265 $121 7.2 Source: RERC.

RERC Weighted Avg. Cap Rate - 1Q 2009

8.5% East 8.5% U.S. Total Avg. Capitalization Rate 7.5% 7.5% n Transaction activity in the East regional apartment market slowed greatly in first quarter 2009, with the 12-month 6.5% 6.5% trailing average sales volume declining nearly 35 percent as compared to the previous quarter. 5.5% 5.5% n The size- and price-weighted average price per apartment 4.5% 4.5% unit increased, while the median price per unit decreased. The weighted average and median capitalization rates for 3.5% 3.5% apartment properties in the East region increased to 6.7 percent and 7.0 percent, respectively. Baltimore Boston Charlotte Hartford New York Raleigh Northern NJ Philadelphia Richmond Washington, D.C.

RERC Size-Weighted Avg. PPU - 1Q 2009 RERC Price-Weighted Avg. PPU - 1Q 2009 $250,000 $250,000 $700,000 $700,000 East East U.S. Total U.S. Total Size-Weighted Average PPU $600,000 Price-Weighted Average PPU $600,000 $200,000 $200,000 $500,000 $500,000

$150,000 $150,000 $400,000 $400,000

$300,000 $300,000 $100,000 $100,000 $200,000 $200,000 $50,000 $50,000 $100,000 $100,000

$0 $0 $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 Apartment Transactions (04/01/08 - 03/31/09) Volume Size-weighted Price-weighted Median Average (millions) Average ($/unit) Average ($/unit) ($/sf) Cap Rate (%) Baltimore $210 $89,878 $109,486 $63,003 6.7 Boston $439 $159,472 $210,316 $132,979 5.1 Charlotte $117 $47,305 $63,397 $46,800 6.1 Hartford $190 $101,536 $111,770 $64,506 6.8 New York $3,322 $211,458 $602,027 $115,955 5.5 Norfolk $106 $92,282 $95,637 $87,257 – Northern NJ $240 $124,992 $192,192 $101,774 5.3 Philadelphia $570 $88,088 $104,861 $77,273 7.5 Pittsburgh $38 $62,128 $95,193 $28,502 – Raleigh $539 $82,231 $95,595 $74,851 6.1 Richmond $148 $107,289 $125,755 $68,000 7.9 Washington, D.C. $1,873 $170,680 $208,169 $155,411 6.5 East Total $9,360 $123,140 $306,252 $90,689 6.7 U.S. Total $28,816 $89,086 $181,791 $80,771 5.9 Source: RERC.

n The 12-month trailing average hotel volume in the East n The size-weighted average and median prices per ho- region declined by more than 85 percent from year-ago tel unit decreased during first quarter 2009. The price- levels during first quarter 2009. This is on the heels of a weighted average price per unit remained about the same nearly 40-percent decline in fourth quarter 2008. as last quarter.

RERC Size-Weighted Avg. PPU - 1Q 2009 RERC Price-Weighted Avg. PPU - 1Q 2009 $300,000 $300,000 $400,000 $400,000 East East U.S. Total $350,000 $350,000 $250,000 $250,000 U.S. Total Price-Weighted Average PPU Price-Weighted Average PPU $300,000 $300,000 $200,000 $200,000 $250,000 $250,000

$150,000 $150,000 $200,000 $200,000

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

$0 $0 $0 $0

Boston Norfolk Raleigh Boston Norfolk Raleigh Charlotte New York Richmond Charlotte New York Richmond Washington, D.C. Washington, D.C.

East Hotel Transactions (04/01/08 - 03/31/09) Volume Size-weighted Price-weighted Median Average (millions) Average ($/unit) Average ($/unit) ($/sf) Cap Rate (%) Baltimore – – – – – Boston $171 $112,725 $168,000 $69,667 – Charlotte $34 $63,885 $77,433 $51,339 – Hartford – – – – – New York $450 $263,660 $361,449 $191,157 – Norfolk $153 $132,611 $173,200 $137,379 – Northern NJ – – – – – Philadelphia – – – – – Pittsburgh – – – – – Raleigh $46 $59,896 $97,705 $51,447 – Richmond $81 $90,144 $106,377 $66,429 – Washington, D.C. $103 $195,932 $216,014 $134,000 – East Total $1,949 $125,599 $234,440 $78,431 – U.S. Total $7,940 $133,574 $293,316 $72,715 7.5 Source: RERC.

East Region Space Market

Trusted Advice. Proven Performance. Office - 1Q-2009 Inventory SF (000s) Vacancy Rate (%) Net Absorption SF (000s) Asking Rents ($/SF) CBRE/Torto Wheaton Research is a Baltimore 54,850 14.4 -133 $22.08 Gross full-service research and investment Boston 162,369 12.3 -1,760 $24.08 Gross advisory firm, specializing in com- mercial real estate markets. Charlotte 41,186 15.2 -696 $20.41 Gross Hartford 26,273 18.1 11 $19.54 Gross With over 20 years of experience, New York 438,989 7.4 -2,862 $41.75 Gross our industry leading research, mar- Newark 44,939 14.1 331 $23.95 Gross ket expertise, and strategic partner- Philadelphia 105,219 13.2 -311 $22.17 Net ships provide clients with tactical ad- Pittsburgh 69,109 12.0 183 $18.43 Gross vice and strategic direction to identify Raleigh 43,279 13.8 -32 $20.36 Gross market opportunities that enhance Washington, D.C. 284,052 12.8 -1,133 $32.64 Gross performance and manage risk. Industrial - 1Q-2009 Inventory SF (000s) Availability Rate (%) Net Absorption SF (000s) Asking Rents ($/SF) CBRE/TWR is internationally rec- Baltimore 215,826 15.7 -1,370 $5.72 Net ognized for our solid foundation in 420,185 15.5 -2,685 $6.65 Net economics, accurate forecasts, ana- Boston lytical expertise, and providing clients Charlotte 194,866 11.1 -1,989 $4.94 Net with unparalleled insight into the dy- Hartford 69,811 12.0 -313 $4.85 Net namics of the real estate market that New York 310,173 11.2 -2,336 $7.45 Net impact performance. Newark 214,493 11.0 -2,758 $6.15 Net Philadelphia 440,903 12.0 -3,562 $5.58 Net Pittsburgh 140,214 13.6 -1,217 $5.17 Gross Raleigh 78,469 12.8 -272 $5.68 Net Washington, D.C. 198,555 14.1 -1,009 $9.48 Net Retail - 4Q-2008 Inventory SF (000s) Availability Rate (%) Net Absorption SF (000s) TWR Rent Index ($/SF) Baltimore 34,678 7.5 -139 $18.89 Boston 49,485 8.0 -310 $17.89 Charlotte 16,286 10.4 69 $21.43 New York 34,720 9.3 -210 $31.05

William Wheaton Jon Southard James Costello Newark 13,698 7.5 -164 $26.43 Ph.D., Principal Principal Principal Philadelphia 56,983 10.6 -53 $21.60 Washington, D.C. 61,886 7.3 51 $23.60 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© 2009 by Real Estate Research Corporation (RERC) and the CCIM Institute. 38 Quarterly Demographics & Economics Previous Previous Population Unemployment Rate Metro Trend Analysis Quarter Year Baltimore MSA 2.7 million Baltimore2 7.4% Office Baltimore Growth1 0.62% Maryland2 7.0% Size-Weighted Average PPSF   1 3 National Growth 1.23% National 8.6% Weighted Average Cap Rate  = Household Income & Value Industrial Per Capita Income $32,279 2008 Households 1.0 million Size-Weighted Average PPSF   1-year Job Growth -0.90% Household Growth 0.68%  1-Year Job Additions -12,600 Median Home Price $260,100 Weighted Average Cap Rate – Major Employers Retail Constellation Energy Size-Weighted Average PPSF   Johns Hopkins Hospital Weighted Average Cap Rate   Verizon Apartment Lifebridge Health Size-Weighted Average PPU   H&S Bakery Weighted Average Cap Rate  –

BaltimoreSources: Bureau of Labor Statistics, NAR, STDB Online. “2008 Local Market Report” - Baltimore Region ©2008 NATIONAL ASSOCIATION OF REALTORS®. Used * with permission. Reproduction, reprinting, or retransmission of this document in any form (electronic Metro Cap Rate Comparison Current Quarter media included) is prohibited without written permission. 1Projected annual growth over 5 years (2008-2013). 2Rates are non-seasonally adjusted as of March Office 2009. 3Rates are non-seasonally adjusted as of April 2009. vs. East Region  Noteworthy Transactions  Sale Date Sale Price Sq. Ft./Units PPSF/PPU vs. Nation Office Industrial 7222 Ambassador Road 2-09 $2,620,000 22,753 $115 vs. East Region  7138 Windsor Blvd. 2-09 $1,890,000 12,000 $158 vs. Nation  Industrial Retail 2130 Baldwin Ave. 1-09 $10,350,000 110,842 $93 vs. East Region = 8149 Norris Lane 2-09 $2,300,000 16,050 $143 vs. Nation  Retail 9200 Old Annapolis Road 1-09 $2,980,000 15,415 $193 Apartment 2623 Washington Blvd. 2-09 $1,650,000 10,528 $157 vs. East Region = Apartment vs. Nation  3601 - 3611 Ford’s Lane 1-09 $5,750,000 186 $30,914 *Comparison of current quarter weighted average capitalization rates. Source: RERC, 1Q 2009. 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 Hyatt at City Center Mixed Use N 450,000 N/A 414 Light St. Office N 475,000 2012 The Fitzgerald at UB 280 units Midtown Mixed Use N 14,000 retail 2010 Merchants Terminal Corp. DC Industrial N 155,000 2009 Sources: CBRE, RE Business.

Investment Trends Copyright© 2009 by Real Estate Research Corporation (RERC) and the CCIM Institute. 39 Quarterly Baltimore Transaction Breakdown 12-Month Trailing Averages (04/01/08 - 03/31/09) Office Industrial Retail Apartment Hotel < $5 Million Volume (Mil) $27 $97 $61 – – Size Weighted Avg. ($ per sf/unit) $87 $52 $120 – – Price Weighted Avg. ($ per sf/unit) $110 $81 $179 – – Median ($ per sf/unit) $88 $61 $119 – – > $5 Million Volume (Mil) $445 $307 $158 $208 – Size Weighted Avg. ($ per sf/unit) $201 $78 $195 $90,502 – Price Weighted Avg. ($ per sf/unit) $235 $109 $217 $110,040 – Median ($ per sf/unit) $179 $81 $171 $110,043 – All Transactions Volume (Mil) $472 $404 $219 $210 – Size Weighted Avg. ($ per sf/unit) $187 $69 $166 $89,878 – Price Weighted Avg. ($ per sf/unit) $228 $103 $207 $109,486 – Median ($ per sf/unit) $116 $62 $149 $63,003 – Capitalization Rates (All Transactions) Weighted Average (%) 6.4 7.0 7.6 6.7 – Median (%) 6.7 7.0 7.5 6.4 – Source: RERC.

Baltimore Transaction Trends 12-Month Trailing (04/01/08 - 03/31/09) Office Industrial Retail Apartment Hotel Median Price % Change Quarter Ago -9% -2% -4% -25% – % Change Year Ago -20% -10% – -12% – Volume % Change Quarter Ago -18% -1% -1% -41% – % Change Year Ago -62% -38% – -74% – Source: RERC.

Investment Trends Copyright© 2009 by Real Estate Research Corporation (RERC) and the CCIM Institute. 40 Quarterly Demographics & Economics Previous Previous Population Unemployment Rate Metro Trend Analysis Quarter Year Boston MSA 4.5 million Boston2 7.4% Office Boston Growth1 0.28% Massachusetts2 8.2% Size-Weighted Average PPSF   1 3 National Growth 1.23% National 8.6% Weighted Average Cap Rate   Household Income & Value Industrial Per Capita Income $39,569 2008 Households 1.7 million Size-Weighted Average PPSF   1-year Job Growth -0.80% Household Growth 0.34% 1-year Job Additons -19,700 Median Home Price $335,700 Retail Major Employers Size-Weighted Average PPSF   Massachusetts General Hospital Weighted Average Cap Rate   Boston Boston University Apartment Fidelity Investments Life Insurance Size-Weighted Average PPU   John Hancock Life Insurance Co. USA Weighted Average Cap Rate  – Brigham & Women’s Hospital Inc. Hotel Sources: Bureau of Labor Statistics, NAR, STDB Online. “2008 Local Market Report” - Boston Region ©2008 NATIONAL ASSOCIATION OF REALTORS®. Used Size-Weighted Average PPU   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 (2008-2013). 2Rates are non-seasonally adjusted as of March Metro Cap Rate Comparison Current Quarter 2009. 3Rates are non-seasonally adjusted as of April 2009. Office Noteworthy Transactions  Sale Date Sale Price Sq. Ft./Units PPSF/PPU vs. East Region Office vs. Nation  10 Brookline Place W 2-09 $62,000,000 155,896 $398 Retail 907 Park St. 1-09 $42,500,000 583,136 $73 vs. East Region  Industrial vs. Nation  339 Washington Ave. 1-09 $23,400,000 595,000 $39 Apartment Corporate Place 1-09 $7,900,000 95,000 $83 vs. East Region  Retail 66 - 68 Newbury Ave. 1-09 $11,400,000 48,745 $234 vs. Nation  *Comparison of current quarter weighted average capitalization rates. 2235 Providence Hwy. 1-09 $7,350,000 50,000 $147 Source: RERC, 1Q 2009. Apartment 107 Forest Hills St. 2-09 $17,237,500 108 $159,606 278 Newbury 3-09 $3,750,000 10 $375,000 Hotel Hyatt Regency 3-09 $110,000,000 498 $220,884 15 Middlesex Canal Park 3-09 $8,500,000 196 $43,367 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 Clarendon Multifamily N 281 2009 Allison Landing Industrial N 86,000 2010 Franklin St. Luxury Tower Mixed Use R 1,186,000 2011 44 Burbank St. Multifamily N 45 2011 Sources: CBRE, RE Business.

Investment Trends Copyright© 2009 by Real Estate Research Corporation (RERC) and the CCIM Institute. 41 Quarterly Boston Transaction Breakdown 12-Month Trailing Averages (04/01/08 - 03/31/09) Office Industrial Retail Apartment Hotel < $5 Million Volume (Mil) $135 $206 $140 $52 – Size Weighted Avg. ($ per sf/unit) $84 $53 $98 $108,501 – Price Weighted Avg. ($ per sf/unit) $144 $90 $154 $149,021 – Median ($ per sf/unit) $96 $70 $106 $89,896 – > $5 Million Volume (Mil) $1,466 $469 $212 $387 $160 Size Weighted Avg. ($ per sf/unit) $220 $91 $112 $170,100 $120,243 Price Weighted Avg. ($ per sf/unit) $363 $169 $278 $218,469 $175,164 Median ($ per sf/unit) $207 $82 $212 $178,303 $69,667 All Transactions Volume (Mil) $1,601 $675 $352 $439 $171 Size Weighted Avg. ($ per sf/unit) $193 $75 $106 $159,472 $112,725 Price Weighted Avg. ($ per sf/unit) $344 $145 $229 $210,316 $168,000 Median ($ per sf/unit) $139 $74 $116 $132,979 $69,667 Capitalization Rates (All Transactions) Weighted Average (%) 5.9 – 6.9 5.1 – Median (%) 6.5 – 6.4 5.0 – Source: RERC.

Boston Transaction Trends 12-Month Trailing (04/01/08 - 03/31/09) Office Industrial Retail Apartment Hotel Median Price % Change Quarter Ago -10% -10% -5% -11% -44% % Change Year Ago -10% -10% -24% -2% -44% Volume % Change Quarter Ago -40% -32% -32% -4% -41% % Change Year Ago -77% -66% -76% -70% -89% Source: RERC.

Investment Trends Copyright© 2009 by Real Estate Research Corporation (RERC) and the CCIM Institute. 42 Quarterly Demographics & Economics Previous Previous Population Unemployment Rate Metro Trend Analysis Quarter Year Charlotte MSA 1.7 million Charlotte2 11.4% Office Charlotte Growth1 3.05% North Carolina2 10.9% Size-Weighted Average PPSF   1 3 National Growth 1.23% National 8.6% Weighted Average Cap Rate = = Household Income & Value Industrial Per Capita Income $32,343 2008 Households 656,253 Size-Weighted Average PPSF   1-year Job Growth -1.80% Household Growth 3.12% 1-Year Job Additions -15,700 Median Home Price $186,300 Retail Major Employers Size-Weighted Average PPSF   Bank of America Weighted Average Cap Rate –  Carolinas Healthcare System Apartment Wachovia Corporation Size-Weighted Average PPU   Adecco Weighted Average Cap Rate   Duke Energy Corp. Hotel Sources: Bureau of Labor Statistics, NAR, STDB Online. Charlotte “2008 Local Market Report” - Charlotte Region ©2008 NATIONAL ASSOCIATION OF REALTORS®. Used Size-Weighted Average PPU   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 (2008-2013). 2Rates are non-seasonally adjusted as of March Metro Cap Rate Comparison Current Quarter 2009. 3Rates are non-seasonally adjusted as of April 2009. Office Noteworthy Transactions Sale Date Sale Price Sq. Ft./Units PPSF/PPU vs. East Region  Industrial vs. Nation  6125 Harris Retail Technology Blvd. 1-09 $5,310,000 148,694 $36 vs. East Region  8200 Tower Point Drive 1-09 $1,730,000 7,497 $231 vs. Nation  Retail 2500 South Blvd. 1-09 $2,500,000 50,000 $50 Apartment 1965 Cinema Drive 1-09 $1,550,000 9,060 $171 vs. East 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. Source: RERC, 1Q 2009. Property New(N)/ Total Sq. Estimated Type Refurbished(R) Ft./Units Delivery Hillsborough & Dawson St. Mixed Use N N/A 2010 500 W Trade Multifamily N 400 2009 590,000 retail/office Elizabeth Avenue Mixed Use N 850 units 2010 Duke Energy Center Office N 1,200,000 2010 Sources: CBRE, RE Business.

Investment Trends Copyright© 2009 by Real Estate Research Corporation (RERC) and the CCIM Institute. 43 Quarterly Charlotte Transaction Breakdown 12-Month Trailing Averages (04/01/08 - 03/31/09) Office Industrial Retail Apartment Hotel < $5 Million Volume (Mil) $23 $92 $81 $23 – Size Weighted Avg. ($ per sf/unit) $100 $47 $94 $38,151 – Price Weighted Avg. ($ per sf/unit) $127 $62 $169 $39,424 – Median ($ per sf/unit) $117 $57 $81 $35,917 – > $5 Million Volume (Mil) $262 $189 $233 $94 – Size Weighted Avg. ($ per sf/unit) $123 $67 $145 $50,313 – Price Weighted Avg. ($ per sf/unit) $128 $110 $174 $69,368 – Median ($ per sf/unit) $121 $57 $195 $51,573 – All Transactions Volume (Mil) $286 $281 $314 $117 $34 Size Weighted Avg. ($ per sf/unit) $121 $59 $127 $47,305 $63,885 Price Weighted Avg. ($ per sf/unit) $128 $94 $172 $63,397 $77,433 Median ($ per sf/unit) $121 $57 $91 $46,800 $51,339 Capitalization Rates (All Transactions) Weighted Average (%) 7.7 – 7.5 6.1 – Median (%) 7.8 – 7.9 6.6 – Source: RERC.

Charlotte Transaction Trends 12-Month Trailing (04/01/08 - 03/31/09) Office Industrial Retail Apartment Hotel Median Price % Change Quarter Ago 0% 4% -6% -3% 1% % Change Year Ago -12% 7% -12% -16% -31% Volume % Change Quarter Ago -13% -46% -22% -55% -34% % Change Year Ago -76% -47% -33% -89% -80% Source: RERC.

Investment Trends Copyright© 2009 by Real Estate Research Corporation (RERC) and the CCIM Institute. 44 Quarterly Demographics & Economics Previous Previous Population Unemployment Rate Metro Trend Analysis Quarter Year Hartford MSA 1.2 million Hartford2 7.8% Office Hartford Growth1 0.45% Connecticut2 7.8% Size-Weighted Average PPSF   1 3 National Growth 1.23% National 8.6% Industrial Household Income & Value Size-Weighted Average PPSF   Per Capita Income $34,757 2008 Households 468,372 Retail 1-year Job Growth -1.10% Household Growth 0.53% Size-Weighted Average PPSF   1-Year Job Additions -6,400 Median Home Price $233,700 Major Employers Weighted Average Cap Rate = – Aetna Inc. Apartment Hartford Hospital Size-Weighted Average PPU   Hartford Financial SVC Group Metro Cap Rate Comparison* Current Quarter

Hartford United Technologies Corporation Uniprise Inc. Retail Sources: Bureau of Labor Statistics, NAR, STDB Online. vs. East Region  “2008 Local Market Report” - Hartford Region ©2008 NATIONAL ASSOCIATION OF REALTORS®. Used with permission. Reproduction, reprinting, or retransmission of this document in any form (electronic vs. Nation  media included) is prohibited without written permission. 1Projected annual growth over 5 years (2008-2013). 2Rates are non-seasonally adjusted as of March Apartment 2009. 3Rates are non-seasonally adjusted as of April 2009. vs. East Region = Noteworthy Transactions vs. Nation  Sale Date Sale Price Sq. Ft./Units PPSF/PPU *Comparison of current quarter weighted average capitalization rates. Office Source: RERC, 1Q 2009. 17 Talcott Notch Road 2-09 $2,990,000 35,326 $85 Industrial 18 - 22 Thomas St. 3-09 $27,520,500 252,318 $109 18 Peters Road 2-09 $12,875,725 91,623 $141 Retail 3 Tunxis St. 3-09 $14,000,000 80,060 $175 Stop & Shop Plaza 3-09 $15,500,000 122,718 $126 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 Yale University Health Center Office N 146,000 2010 58 units + William Clark Mixed Use R 9,000 sf 2010 100 International Drive Industrial N 304,200 N/A Sources: CBRE, RE Business.

Investment Trends Copyright© 2009 by Real Estate Research Corporation (RERC) and the CCIM Institute. 45 Quarterly Hartford Transaction Breakdown 12-Month Trailing Averages (04/01/08 - 03/31/09) Office Industrial Retail Apartment Hotel < $5 Million Volume (Mil) $25 $51 $55 $7 – Size Weighted Avg. ($ per sf/unit) $69 $43 $56 $46,648 – Price Weighted Avg. ($ per sf/unit) $98 $54 $76 $47,242 – Median ($ per sf/unit) $97 $45 $66 $47,619 – > $5 Million Volume (Mil) $72 $109 $80 $183 – Size Weighted Avg. ($ per sf/unit) $65 $81 $118 $106,150 – Price Weighted Avg. ($ per sf/unit) $96 $96 $147 $114,154 – Median ($ per sf/unit) $94 $96 $146 $111,212 – All Transactions Volume (Mil) $97 $161 $135 $190 – Size Weighted Avg. ($ per sf/unit) $66 $63 $81 $101,536 – Price Weighted Avg. ($ per sf/unit) $97 $83 $118 $111,770 – Median ($ per sf/unit) $96 $49 $75 $64,506 – Capitalization Rates (All Transactions) Weighted Average (%) – – 8.5 6.8 – Median (%) – – 8.0 6.8 – Source: RERC.

Hartford Transaction Trends 12-Month Trailing (04/01/08 - 03/31/09) Office Industrial Retail Apartment Hotel Median Price % Change Quarter Ago -6% 6% -10% 2% – % Change Year Ago 11% -5% 0% - – Volume % Change Quarter Ago -38% 15% 0% -23% – % Change Year Ago -26% -30% -46% – – Source: RERC.

y Population Unemployment Rate Metro Trend Analysis Quarter Year New York MSA 19.1 million New York2 8.1% Office New York Growth1 0.44% New York2 8.1% Size-Weighted Average PPSF   1 3 National Growth 1.23% National 8.6% Weighted Average Cap Rate =  Household Income & Value Industrial Per Capita Income $34,792 2008 Households 6.9 million Size-Weighted Average PPSF   1-year Job Growth -1.40% Household Growth 0.43% 1-Year Job Additions -120,300 Median Home Price $390,400 Retail Major Employers Size-Weighted Average PPSF   Ernst & Young Weighted Average Cap Rate   Mount Sinai Medical Center Apartment Memorial Sloan Kettering Size-Weighted Average PPU   American Express Co. Weighted Average Cap Rate   Pfizer Inc. Hotel Sources: Bureau of Labor Statistics, NAR, STDB Online. “2008 Local Market Report” - New York Region ©2008 NATIONAL ASSOCIATION OF REALTORS®. Used Size-Weighted Average PPU   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 (2008-2013). 2Rates are non-seasonally adjusted as of March Metro Cap Rate Comparison Current Quarter 2009. 3Rates are non-seasonally adjusted as of April 2009. Office Noteworthy Transactions vs. East Region  Sale Date Sale Price Sq. Ft./Units PPSF/PPU Office vs. Nation  22301 Union Turnpike 3-09 $225,000,000 750,000 $300 Industrial

New York220 Cit E. 65th St. 1-09 $13,250,000 20,000 $663 vs. East Region  Industrial vs. Nation  5-33 48th Ave. 3-09 $13,500,000 55,992 $241 Retail 600 - 604 Union St. 1-09 $3,400,000 10,000 $340 vs. East Region  Retail  644-652 E. 14th St. 2-09 $12,300,000 9,566 $1,286 vs. Nation Voice Road Plaza 2-09 $36,200,000 131,850 $275 Apartment Apartment vs. East Region  2829 Sedgwick Ave. 3-09 $9,100,000 99 $91,919 vs. Nation  150 W. 84th St. 3-09 $5,350,000 20 $267,500 *Comparison of current quarter weighted average capitalization rates. Source: RERC, 1Q 2009. 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 625 W 140th St. Multifamily N 114 2010 Tower of the World Trade Center Office R 1,300,000 2013 Beekman Tower Mixed Use N 121,000/902 2010 34 Berry St. Multifamily N 142 2010 Hyatt Place - Nevins St. Hotel N 174 2011 Sources: CBRE, RE Business.

Investment Trends Copyright© 2009 by Real Estate Research Corporation (RERC) and the CCIM Institute. 47 Quarterly New York Transaction Breakdown 12-Month Trailing Averages (04/01/08 - 03/31/09) Office Industrial Retail Apartment Hotel < $5 Million Volume (Mil) $213 $407 $610 $540 – Size Weighted Avg. ($ per sf/unit) $148 $105 $171 $108,569 – Price Weighted Avg. ($ per sf/unit) $261 $158 $288 $132,147 – Median ($ per sf/unit) $161 $108 $176 $100,000 – > $5 Million Volume (Mil) $12,113 $545 $1,098 $2,783 $445 Size Weighted Avg. ($ per sf/unit) $612 $117 $318 $259,066 $282,817 Price Weighted Avg. ($ per sf/unit) $888 $172 $582 $693,143 $364,856 Median ($ per sf/unit) $448 $140 $456 $176,209 $231,333 All Transactions Volume (Mil) $12,326 $953 $1,709 $3,322 $450 Size Weighted Avg. ($ per sf/unit) $581 $111 $243 $211,458 $263,660 Price Weighted Avg. ($ per sf/unit) $877 $166 $477 $602,027 $361,449 Median ($ per sf/unit) $227 $115 $207 $115,955 $191,157 Capitalization Rates (All Transactions) Weighted Average (%) 4.7 5.9 7.0 5.5 – Median (%) 5.5 6.5 6.0 6.0 – Source: RERC.

New York Transaction Trends 12-Month Trailing (04/01/08 - 03/31/09) Office Industrial Retail Apartment Hotel Median Price % Change Quarter Ago -20% -12% -15% -8% -25% % Change Year Ago -41% -18% -13% -7% -9% Volume % Change Quarter Ago -20% -29% -18% -38% -45% % Change Year Ago -64% -61% -59% -69% -90% Source: RERC.

Investment Trends Copyright© 2009 by Real Estate Research Corporation (RERC) and the CCIM Institute. 48 Quarterly Demographics & Economics Previous Previous Population Unemployment Rate Metro Trend Analysis Quarter Year Norfolk MSA 1.7 million Norfolk2 6.9% Office Norfolk Growth1 0.90% Virginia2 7.0% Size-Weighted Average PPSF   1 3 National Growth 1.23% National 8.6% Industrial Household Income & Value Size-Weighted Average PPSF   Per Capita Income $25,852 2008 Households 634,043 Retail 1-year Job Growth 1.00% Household Growth 1.04% Size-Weighted Average PPSF   1-Year Job Additions 7,700 Median Home Price $222,000 Major Employers Weighted Average Cap Rate =  Northrop Grumman Apartment

Norfolk Sentara Healthcare Size-Weighted Average PPU   Old Dominion University Metro Cap Rate Comparison* Current Quarter Norfolk Naval Shipyard City of Norfolk Retail Sources: Bureau of Labor Statistics, NAR, STDB Online. vs. East Region  “2008 Local Market Report” - Virginia Beach Region ©2008 NATIONAL ASSOCIATION OF REALTORS®. Used with permission. Reproduction, reprinting, or retransmission of this document in any form (electronic vs. Nation  media included) is prohibited without written permission. *Comparison of current quarter weighted average capitalization rates. 1Projected annual growth over 5 years (2008-2013). 2Rates are non-seasonally adjusted as of March Source: RERC, 1Q 2009. 2009. 3Rates are non-seasonally adjusted as of April 2009. Noteworthy Transactions Sale Date Sale Price Sq. Ft./Units PPSF/PPU Office 621 Lynnhaven Parkway 2-09 $7,800,000 82,000 $95 380 Cleveland Place 3-09 $1,300,000 11,780 $110 Industrial 875 Middle Ground Blvd. 3-09 $5,100,000 62,052 $82 1429 Miller Store Road 2-09 $2,200,000 16,424 $134 Retail Salem Lakes Marketplace 2-09 $2,550,000 42,807 $60 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 Wachovia Center Office/Retail N 300,000 2010 Sources: CBRE, RE Business.

Investment Trends Copyright© 2009 by Real Estate Research Corporation (RERC) and the CCIM Institute. 49 Quarterly Norfolk Transaction Breakdown 12-Month Trailing Averages (04/01/08 - 03/31/09) Office Industrial Retail Apartment Hotel < $5 Million Volume (Mil) $20 $35 $28 – – Size Weighted Avg. ($ per sf/unit) $90 $70 $86 – – Price Weighted Avg. ($ per sf/unit) $97 $115 $172 – – Median ($ per sf/unit) $85 $68 $74 – – > $5 Million Volume (Mil) $121 – – $101 $150 Size Weighted Avg. ($ per sf/unit) $119 – – $94,082 $147,668 Price Weighted Avg. ($ per sf/unit) $125 – – $96,924 $176,161 Median ($ per sf/unit) $102 – – $99,023 $138,889 All Transactions Volume (Mil) $141 $54 $87 $106 $153 Size Weighted Avg. ($ per sf/unit) $114 $74 $121 $92,282 $132,611 Price Weighted Avg. ($ per sf/unit) $121 $104 $162 $95,637 $173,200 Median ($ per sf/unit) $98 $71 $81 $87,257 $137,379 Capitalization Rates (All Transactions) Weighted Average (%) 8.2 – 8.5 – – Median (%) 8.2 – 8.6 – – Source: RERC.

Norfolk Transaction Trends 12-Month Trailing (04/01/08 - 03/31/09) Office Industrial Retail Apartment Hotel Median Price % Change Quarter Ago -1% 11% -20% 12% 19% % Change Year Ago -29% 11% -39% 6% – Volume % Change Quarter Ago -12% -46% -68% -23% -13% % Change Year Ago -41% -69% -66% -61% – Source: RERC.

Investment Trends Copyright© 2009 by Real Estate Research Corporation (RERC) and the CCIM Institute. 50 Quarterly Demographics & Economics Previous Previous Population Unemployment Rate Metro Trend Analysis Quarter Year y Newark (City) 281,000 Newark2 – Office Newark Growth1 0.40% New Jersey2 8.7% Size-Weighted Average PPSF   1 3 National Growth 1.23% National 8.6% Weighted Average Cap Rate –  Household Income & Value Industrial Per Capita Income N/A 2006 Households N/A Size-Weighted Average PPSF   1-year Job Growth 2006 Household - Newark -0.60% Growth N/A Retail 1-Year Job Additions Size-Weighted Average PPSF   - Newark -6,400 Median Home Price $373,600 Weighted Average Cap Rate =  Major Employers Apartment Continental Airlines University of Medicine/Dentistry Size-Weighted Average PPU   Prudential Financial Inc. Weighted Average Cap Rate  – MT Carmel Guild-Mental Health Service Hotel Newark Beth Israel Medical Center Size-Weighted Average PPU   Sources: Bureau of Labor Statistics, NAR, STDB Online. “2008 Local Market Report” - Newark Region ©2008 NATIONAL ASSOCIATION OF REALTORS®. Used Metro Cap Rate Comparison* Current Quarter with permission. Reproduction, reprinting, or retransmission of this document in any form (electronic media included) is prohibited without written permission. Office 1Projected annual growth over 5 years (2008-2013). 2Rates are non-seasonally adjusted as of March 2009. 3Rates are non-seasonally adjusted as of April 2009. vs. East Region  Noteworthy Transactions vs. Nation  Sale Date Sale Price Sq. Ft./Units PPSF/PPU Retail Office vs. East Region  261 North St. 1-09 $62,000,000 155,000 $400 355 Madison Ave. 2-09 $6,000,000 20,000 $300 vs. Nation  Industrial Apartment 140 Docks Corner Road 1-09 $42,500,000 583,376 $73 vs. East Region  4007 - 4015 Park Ave. 2-09 $3,100,000 17,500 $177 vs. Nation  Retail *Comparison of current quarter weighted average capitalization rates. 240 Mathistown Road 2-09 $6,234,506 40,880 $153 Source: RERC, 1Q 2009. 1139 Raritan Road 1-09 $5,267,000 27,371 $192 Apartment Northwood Estates 1-09 $27,500,000 253 $108,696 Hotel Wellesley Inn 2-09 $1,400,000 108 $12,963 Northern New Jerse 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 Rickard Stockton College of New Jersey Office N 153,000 2011 Aurora Over the Hudson Multifamily N 131 2010 Richardson Building Lofts Multifamily R 67 2009 1 million sf & The Richwood Village Mixed Use N 1,200 units 2010 Liberty Plaza Office N 430,000 N/A Sources: CBRE, RE Business.

Investment Trends Copyright© 2009 by Real Estate Research Corporation (RERC) and the CCIM Institute. 51 Quarterly Northern NJ Transaction Breakdown 12-Month Trailing Averages (04/01/08 - 03/31/09) Office Industrial Retail Apartment Hotel < $5 Million Volume (Mil) $40 $100 $78 $37 – Size Weighted Avg. ($ per sf/unit) $110 $75 $116 $101,562 – Price Weighted Avg. ($ per sf/unit) $171 $111 $189 $124,457 – Median ($ per sf/unit) $134 $78 $128 $95,707 – > $5 Million Volume (Mil) $1,077 $366 $323 $203 – Size Weighted Avg. ($ per sf/unit) $230 $80 $178 $130,481 – Price Weighted Avg. ($ per sf/unit) $280 $87 $199 $204,544 – Median ($ per sf/unit) $162 $76 $192 $172,875 – All Transactions Volume (Mil) $1,118 $466 $401 $240 – Size Weighted Avg. ($ per sf/unit) $222 $79 $161 $124,992 – Price Weighted Avg. ($ per sf/unit) $276 $92 $197 $192,192 – Median ($ per sf/unit) $153 $78 $145 $101,774 – Capitalization Rates (All Transactions) Weighted Average (%) 6.2 – 6.9 5.3 – Median (%) 6.9 – 6.5 5.0 – Source: RERC.

Northern NJ Transaction Trends 12-Month Trailing (04/01/08 - 03/31/09) Office Industrial Retail Apartment Hotel Median Price % Change Quarter Ago 4% -8% -18% 5% – % Change Year Ago 6% -17% -20% -10% – Volume % Change Quarter Ago -20% -27% -32% -37% – % Change Year Ago -36% -57% -51% -85% – Source: RERC.

Investment Trends Copyright© 2009 by Real Estate Research Corporation (RERC) and the CCIM Institute. 52 Quarterly Demographics & Economics Previous Previous Population Unemployment Rate Metro Trend Analysis Quarter Year Philadelphia MSA 5.9 million Philadelphia2 8.1% Office Philadelphia Growth1 0.44% Pennsylvania2 8.2% Size-Weighted Average PPSF   National Growth1 1.23% National3 8.6%

hia Weighted Average Cap Rate   Household Income & Value Industrial Per Capita Income $32,504 2008 Households 2.2 million

p Size-Weighted Average PPSF   1-year Job Growth -1.30% Household Growth 0.51% Retail 1-Year Job Additions -36,200 Median Home Price $212,500 Major Employers Size-Weighted Average PPSF   General Services Admin. GSA Weighted Average Cap Rate   Philadelphia International Airport Apartment Temple University Physicians Size-Weighted Average PPU   U.S. Post Office Weighted Average Cap Rate   Ace International * Sources: Bureau of Labor Statistics, NAR, STDB Online. Metro Cap Rate Comparison Current Quarter “2008 Local Market Report” - Philadelphia Region ©2008 NATIONAL ASSOCIATION OF REALTORS®. Used with permission. Reproduction, reprinting, or retransmission of this document in any form (electronic Office media included) is prohibited without written permission. 1Projected annual growth over 5 years (2008-2013). 2Rates are non-seasonally adjusted as of March vs. East Region  2009. 3Rates are non-seasonally adjusted as of April 2009. vs. Nation  Noteworthy Transactions Sale Date Sale Price Sq. Ft./Units PPSF/PPU Retail Philadel Office vs. East Region = 777 Township Line Road 1-09 $21,000,000 110,000 $191 vs. Nation  1000 N. Cedar Hollow Road 2-09 $19,500,000 357,658 $55 Apartment Industrial vs. East Region  702 Elk Mills Road 1-09 $40,700,000 259,818 $157 vs. Nation  117 Crown Point Road 1-09 $12,200,000 183,570 $66 *Comparison of current quarter weighted average capitalization rates. Retail Source: RERC, 1Q 2009. 282 - 304 N. Sycamore St. 3-09 $14,870,000 35,653 $417 Tractor Supply Co. 1-09 $6,040,000 22,670 $266 Apartment 1324 Phoenixville Pike 2-09 $26,500,000 212 $125,000 2610 Philadelphia Pike 2-09 $12,600,000 206 $61,165 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 2010 Waldorf-Astoria Hotel Hotel/ and Residences Multifamily N 311 2012 2.0 University Place Office N 94,350 N/A Horizon Corporate Center II Office N 200,000 2012 American Commerce Center Office/Hotel N 2,200,000 2012 Sources: CBRE, RE Business.

Investment Trends Copyright© 2009 by Real Estate Research Corporation (RERC) and the CCIM Institute. 53 Quarterly Philadelphia Transaction Breakdown 12-Month Trailing Averages (04/01/08 - 03/31/09) Office Industrial Retail Apartment Hotel < $5 Million Volume (Mil) $57 $124 $111 $58 – Size Weighted Avg. ($ per sf/unit) $105 $50 $104 $59,829 – Price Weighted Avg. ($ per sf/unit) $147 $71 $169 $85,296 – Median ($ per sf/unit) $111 $65 $88 $52,083 – > $5 Million Volume (Mil) $792 $408 $155 $511 – Size Weighted Avg. ($ per sf/unit) $121 $87 $175 $93,112 – Price Weighted Avg. ($ per sf/unit) $146 $108 $213 $107,096 – Median ($ per sf/unit) $130 $66 $164 $91,734 – All Transactions Volume (Mil) $849 $533 $267 $570 – Size Weighted Avg. ($ per sf/unit) $120 $74 $136 $88,088 – Price Weighted Avg. ($ per sf/unit) $146 $99 $195 $104,861 – Median ($ per sf/unit) $116 $65 $100 $77,273 – Capitalization Rates (All Transactions) Weighted Average (%) 6.4 – 7.7 7.5 – Median (%) 6.5 – 8.0 7.5 – Source: RERC.

Philadelphia Transaction Trends 12-Month Trailing (04/01/08 - 03/31/09) Office Industrial Retail Apartment Hotel Median Price % Change Quarter Ago -3% 4% -4% 5% – % Change Year Ago -12% 14% -12% -10% – Volume % Change Quarter Ago -6% 4% -8% -26% – % Change Year Ago -62% -21% -77% -69% – Source: RERC.

Investment Trends Copyright© 2009 by Real Estate Research Corporation (RERC) and the CCIM Institute. 54 Quarterly Demographics & Economics Previous Previous Population Unemployment Rate Metro Trend Analysis Quarter Year h Pittsburgh MSA 2.4 million Pittsburgh2 7.6% Office Pittsburgh Growth1 -0.26% Pennsylvania2 8.2% Size-Weighted Average PPSF   g 1 3 National Growth 1.23% National 8.6% Industrial Household Income & Value Size-Weighted Average PPSF   Per Capita Income $27,536 2008 Households 997,681 Retail 1-year Job Growth -0.60% Household Growth -0.13% Size-Weighted Average PPSF   1-Year Job Additions -7,100 Median Home Price $109,100 Major Employers Weighted Average Cap Rate –  University of Pittsburgh Medical Center Health System Apartment Commonwealth of Pennsylvania Size-Weighted Average PPU =  University of Pittsburgh Weighted Average Cap Rate  – Mellon Financial Corp. Metro Cap Rate Comparison* Current Quarter The PNC Financial Service Group Inc. Sources: Bureau of Labor Statistics, NAR, STDB Online. Retail “2008 Local Market Report” - Pittsburgh Region ©2008 NATIONAL ASSOCIATION OF REALTORS®. Used Pittsburwith permission. Reproduction, reprinting, or retransmission of this document in any form (electronic vs. East Region  media included) is prohibited without written permission. 1Projected annual growth over 5 years (2008-2013). 2Rates are non-seasonally adjusted as of March vs. Nation  2009. 3Rates are non-seasonally adjusted as of April 2009. *Comparison of current quarter weighted average capitalization rates. Noteworthy Transactions Source: RERC, 1Q 2009. Sale Date Sale Price Sq. Ft./Units PPSF/PPU Office 906 Western Ave. 1-09 $2,250,000 16,200 $139 300 Industry Drive 1-09 $4,000,000 11,200 $357 Industrial 517 Woodward Drive 2-09 $1,500,000 62,000 $24 791 Commonwealth Drive 3-09 $1,344,000 42,000 $32 Retail 2055 Washington Pike 2-09 $6,000,000 14,550 $412 7628 Penn Ave. 2-09 $5,750,000 14,820 $388 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 Westinghouse Electric Corporation Office N 775,000 2010 Courtyard by Marriott Hotel N 124 2010 Cambridge Venture Partners Office N 45,000 N/A Westmoreland Technology Park Industrial N 60,000 N/A Sources: CBRE, RE Business.

Investment Trends Copyright© 2009 by Real Estate Research Corporation (RERC) and the CCIM Institute. 55 Quarterly Pittsburgh Transaction Breakdown 12-Month Trailing Averages (04/01/08 - 03/31/09) Office Industrial Retail Apartment Hotel < $5 Million Volume (Mil) $38 $36 $22 $5 – Size Weighted Avg. ($ per sf/unit) $67 $36 $108 $29,860 – Price Weighted Avg. ($ per sf/unit) $101 $54 $211 $30,105 – Median ($ per sf/unit) $61 $45 $75 $28,246 – > $5 Million Volume (Mil) $81 – $35 – – Size Weighted Avg. ($ per sf/unit) $81 – $188 – – Price Weighted Avg. ($ per sf/unit) $194 – $313 – – Median ($ per sf/unit) $183 – $388 – – All Transactions Volume (Mil) $119 $50 $57 $38 – Size Weighted Avg. ($ per sf/unit) $76 $29 $147 $62,128 – Price Weighted Avg. ($ per sf/unit) $164 $45 $274 $95,193 – Median ($ per sf/unit) $61 $35 $89 $28,502 – Capitalization Rates (All Transactions) Weighted Average (%) – – 6.5 – – Median (%) – – 6.5 – – Source: RERC.

Pittsburgh Transaction Trends 12-Month Trailing (04/01/08 - 03/31/09) Office Industrial Retail Apartment Hotel Median Price % Change Quarter Ago 2% -31% -3% 0% – % Change Year Ago -2% -20% -21% -25% – Volume % Change Quarter Ago -20% -33% 19% 0% – % Change Year Ago -66% -68% -63% -51% – Source: RERC.

Investment Trends Copyright© 2009 by Real Estate Research Corporation (RERC) and the CCIM Institute. 56 Quarterly Demographics & Economics Previous Previous Population Unemployment Rate Metro Trend Analysis Quarter Year h Raleigh MSA 1.1 million Raleigh2 8.6% Office Raleigh Growth1 3.59% North Carolina2 10.9% Size-Weighted Average PPSF   g 1 3 National Growth 1.23% National 8.6% Industrial Household Income & Value Size-Weighted Average PPSF   Per Capita Income $34,472 2008 Households 409,917 Retail 1-year Job Growth 0.00% Household Growth 3.62%   1-Year Job Additions 200 Median Home Price $230,900 Size-Weighted Average PPSF Major Employers Weighted Average Cap Rate   North Carolina State University Apartment Wake Medical North Healthplex Size-Weighted Average PPU   Ralei Rex Hospital Weighted Average Cap Rate   Progress Energy Hotel Wake County Public Schools Size-Weighted Average PPU   Sources: Bureau of Labor Statistics, NAR, STDB Online. “2008 Local Market Report” - Raleigh Region ©2008 NATIONAL ASSOCIATION OF REALTORS®. Used * with permission. Reproduction, reprinting, or retransmission of this document in any form (electronic Metro Cap Rate Comparison Current Quarter media included) is prohibited without written permission. 1Projected annual growth over 5 years (2008-2013). 2Rates are non-seasonally adjusted as of December Retail 2008. 3Rates are non-seasonally adjusted as of February 2009. vs. East Region  Noteworthy Transactions Sale Date Sale Price Sq. Ft./Units PPSF/PPU vs. Nation  Office Apartment 5560 Munford Road 2-09 $2,320,000 18,300 $127 vs. East Region  4100 Wake Forest Road 3-09 $1,650,000 6,232 $265 vs. Nation  Industrial *Comparison of current quarter weighted average capitalization rates. 3211 S. Miami Blvd. 1-09 $6,440,000 140,009 $46 Source: RERC, 1Q 2009. 5200 Atlantic Ave. 3-09 $1,900,000 19,742 $96 Retail Pinecrest Pointe Shopping Center 3-09 $7,000,000 89,224 $78 Apartment 2916 & 2918 Chapel Hill Road 1-09 $1,170,000 12 $97,500 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 Hyatt at City Center Mixed Use N 450,000 N/A 414 Light St. Office N 475,000 2012 280 units The Fitzgerald at UB 14,000 Midtown Mixed Use N retail 2010 Merchants Terminal Corp DC Industrial N 155,000 2009 Sources: CBRE, RE Business.

Investment Trends Copyright© 2009 by Real Estate Research Corporation (RERC) and the CCIM Institute. 57 Quarterly Raleigh Transaction Breakdown 12-Month Trailing Averages (04/01/08 - 03/31/09) Office Industrial Retail Apartment Hotel < $5 Million Volume (Mil) $75 $83 $60 $23 – Size Weighted Avg. ($ per sf/unit) $111 $65 $119 $59,932 – Price Weighted Avg. ($ per sf/unit) $131 $94 $170 $70,890 – Median ($ per sf/unit) $116 $70 $107 $68,064 – > $5 Million Volume (Mil) $353 $34 $152 $516 – Size Weighted Avg. ($ per sf/unit) $159 $56 $151 $83,630 – Price Weighted Avg. ($ per sf/unit) $170 $63 $217 $96,706 – Median ($ per sf/unit) $145 $62 $212 $90,689 – All Transactions Volume (Mil) $428 $118 $212 $539 $46 Size Weighted Avg. ($ per sf/unit) $148 $62 $140 $82,231 $59,896 Price Weighted Avg. ($ per sf/unit) $163 $85 $204 $95,595 $97,705 Median ($ per sf/unit) $128 $70 $125 $74,851 $51,447 Capitalization Rates (All Transactions) Weighted Average (%) – – 8.1 6.1 – Median (%) – – 7.6 6.2 – Source: RERC.

Raleigh Transaction Trends 12-Month Trailing (04/01/08 - 03/31/09) Office Industrial Retail Apartment Hotel Median Price % Change Quarter Ago -3% 5% -20% 10% 0% % Change Year Ago -5% 5% -21% 8% -31% Volume % Change Quarter Ago -7% 7% -8% -56% -22% % Change Year Ago -46% -71% -55% -53% -83% Source: RERC.

Investment Trends Copyright© 2009 by Real Estate Research Corporation (RERC) and the CCIM Institute. 58 Quarterly Demographics & Economics Previous Previous Population Unemployment Rate Metro Trend Analysis Quarter Year Richmond MSA 1.2 million Richmond2 7.8% Office Richmond Growth1 1.42% Virginia2 7.0% Size-Weighted Average PPSF   1 3 National Growth 1.23% National 8.6% Industrial Household Income & Value Size-Weighted Average PPSF   Per Capita Income $29,489 2008 Households 478,138 Retail 1-year Job Growth -1.00% Household Growth 1.48% Size-Weighted Average PPSF   1-Year Job Additions -6,700 Median Home Price $199,400 Major Employers Apartment Virginia Commonwealth University Size-Weighted Average PPU   Museum of Fine Arts Hotel Philip Morris USA Size-Weighted Average PPU   Richmond City Offices Metro Cap Rate Comparison* Current Quarter State Police Sources: Bureau of Labor Statistics, NAR, STDB Online. Apartment 1Projected annual growth over 5 years (2007-2012). 2Rates are non-seasonally adjusted as of March 3  Richmond2009. Rates are non-seasonally adjusted as of April 2009. 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, 1Q 2009. Office 2604 Hull St. 2-09 $3,000,000 14,900 $201 8080 Villa Park Drive 2-09 $2,800,000 11,500 $243 Industrial 602 Carolina Road 2-09 $2,740,000 19,844 $138 8191 Staples Mill Road 1-09 $1,000,000 9,600 $104 Retail 7301 Staples Mill Road 2-09 $2,175,000 13,500 $161 8101 W. Broad St. 2-09 $2,410,000 15,981 $151 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 MeadWestvaco Headquarters Office N 310,000 2009 1812 Monroe St. Office N 580,000 2011 The Corner at Short Pump Mixed Use N 238,000 2010 Parham Forest Industrial N 36,000 N/A Sources: CBRE, RE Business.

Investment Trends Copyright© 2009 by Real Estate Research Corporation (RERC) and the CCIM Institute. 59 Quarterly Richmond Transaction Breakdown 12-Month Trailing Averages (04/01/08 - 03/31/09) Office Industrial Retail Apartment Hotel < $5 Million Volume (Mil) $26 $30 $35 $3 – Size Weighted Avg. ($ per sf/unit) $82 $41 $101 $56,615 – Price Weighted Avg. ($ per sf/unit) $111 $93 $186 $60,138 – Median ($ per sf/unit) $72 $48 $136 $63,767 – > $5 Million Volume (Mil) $201 – – $145 $77 Size Weighted Avg. ($ per sf/unit) $129 – – $109,276 $92,137 Price Weighted Avg. ($ per sf/unit) $159 – – $127,088 $108,797 Median ($ per sf/unit) $121 – – $107,984 $58,065 All Transactions Volume (Mil) $227 $43 $56 $148 $81 Size Weighted Avg. ($ per sf/unit) $121 $37 $116 $107,289 $90,144 Price Weighted Avg. ($ per sf/unit) $154 $84 $172 $125,755 $106,377 Median ($ per sf/unit) $88 $48 $136 $68,000 $66,429 Capitalization Rates (All Transactions) Weighted Average (%) – – – 7.9 – Median (%) – – – 7.9 – Source: RERC.

Richmond Transaction Trends 12-Month Trailing (04/01/08 - 03/31/09) Office Industrial Retail Apartment Hotel Median Price % Change Quarter Ago -11% 27% 11% 3% -1% % Change Year Ago -22% 18% – 15% -21% Volume % Change Quarter Ago -16% 9% -24% -13% -40% % Change Year Ago -39% -70% – 12% -62% Source: RERC.

Investment Trends Copyright© 2009 by Real Estate Research Corporation (RERC) and the CCIM Institute. 60 Quarterly Demographics & Economics Previous Previous Population Unemployment Rate Metro Trend Analysis Quarter Year Washington, D.C. MSA 5.5 million Washington, D.C.2 5.9% Office Washington, D.C. Size-Weighted Average PPSF   Growth1 1.64% District of Columbia2 9.5% Weighted Average Cap Rate =  National Growth1 1.23% National3 8.6% Industrial Household Income & Value Per Capita Income $41,304 2008 Households 2.0 million Size-Weighted Average PPSF  

D.C. 1-year Job Growth 0.40% Household Growth 1.62% Weighted Average Cap Rate  –

, 1-Year Job Additions 11,800 Median Home Price $295,100 Retail Major Employers Size-Weighted Average PPSF   George Washington University Weighted Average Cap Rate   WMATA Apartment Federal Bureau of Investigation Size-Weighted Average PPU   Multilateral Investment Grant ton Smithsonian Institution Weighted Average Cap Rate –  Sources: Bureau of Labor Statistics, NAR, STDB Online. Hotel “2008 Local Market Report” - Washington D.C. Region ©2008 NATIONAL ASSOCIATION OF REALTORS®. g Used with permission. Reproduction, reprinting, or retransmission of this document in any form (electronic Size-Weighted Average PPU   media included) is prohibited without written permission. 1Projected annual growth over 5 years (2008-2013). 2Rates are non-seasonally adjusted as of March 2009. Metro Cap Rate Comparison* Current Quarter 3Rates are non-seasonally adjusted as of April 2009. Noteworthy Transactions Office Sale Date Sale Price Sq. Ft./Units PPSF/PPU vs. East Region  Office vs. Nation  1300 Connecticut Ave. 3-09 $63,600,000 117,594 $541 Industrial 1225 19th St. NW 1-09 $26,200,000 72,756 $360 vs. East Region  Industrial vs. Nation = 2270 Beaver Road 3-09 $1,850,000 6,108 $303 Retail Retail 3670 Leonardtown Road 1-09 $2,375,000 14,065 $169 vs. East Region 

Washin 4600 - 4614 Wisconsin Ave. 2-09 $1,600,000 5,365 $298 vs. Nation  Apartment Apartment Inverness Knolls 2-09 $8,200,000 44 $186,364 vs. East Region  Hotel vs. Nation  Embassy Inn 2-09 $5,092,000 38 $134,000 *Comparison of current quarter weighted average capitalization rates. Compiled by RERC for the RERC/CCIM Investment Trends Quarterly report. Source: RERC, 1Q 2009. 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 1050 31st St. Office R 50,000 N/A Watkins Mill Town Center Office N 487,000 2009 Waterfront Station Mixed Use N 2,500,000 2010 700 2nd St. NE Office N 515,000 2009 Sources: CBRE, RE Business.

Investment Trends Copyright© 2009 by Real Estate Research Corporation (RERC) and the CCIM Institute. 61 Quarterly Washington, D.C. Transaction Breakdown 12-Month Trailing Averages (04/01/08 - 03/31/09) Office Industrial Retail Apartment Hotel < $5 Million Volume (Mil) $63 $84 $58 $16 – Size Weighted Avg. ($ per sf/unit) $161 $100 $111 $80,130 – Price Weighted Avg. ($ per sf/unit) $258 $155 $220 $109,944 – Median ($ per sf/unit) $181 $108 $115 $73,235 – > $5 Million Volume (Mil) $3,688 $353 $252 $1,857 $103 Size Weighted Avg. ($ per sf/unit) $419 $143 $277 $172,404 $195,932 Price Weighted Avg. ($ per sf/unit) $519 $158 $368 $209,038 $216,014 Median ($ per sf/unit) $365 $151 $307 $175,370 $134,000 All Transactions Volume (Mil) $3,752 $437 $311 $1,873 $103 Size Weighted Avg. ($ per sf/unit) $408 $132 $216 $170,680 $195,932 Price Weighted Avg. ($ per sf/unit) $515 $157 $340 $208,169 $216,014 Median ($ per sf/unit) $285 $118 $173 $155,411 $134,000 Capitalization Rates (All Transactions) Weighted Average (%) 6.1 7.5 7.4 6.5 – Median (%) 6.7 6.7 7.4 6.5 – Source: RERC.

Washington, D.C. Transaction Trends 12-Month Trailing (04/01/08 - 03/31/09) Office Industrial Retail Apartment Hotel Median Price % Change Quarter Ago -6% -9% -14% 25% -40% % Change Year Ago -9% 3% -18% 21% 14% Volume % Change Quarter Ago -23% -9% -18% -17% -60% % Change Year Ago -74% -33% -72% -45% -95% Source: RERC.