2010 Global Market Report - NAI Commercial Real Estate

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® tel +1 609 945 4000fax +1 609 945 4001www.naiglobal.com4 Independence WaySuite 400Princeton NJ 08540January 2010Jeffrey M. FinnPresident &Chief Executive OfficerDear Real Estate Executive:No matter where you look, 2009 was a very challenging year for commercial real estate. As the global recession took hold,local and regional economies stagnated or declined and market fundamentals eroded. Investors remained on the sidelines,cut off from the capital needed to finance acquisitions, while those with cash waited patiently for signs the market trulyhad bottomed. As the recession wore on, most major corporate tenants adopted a wait-and-see position, deferring majordecisions. As expected, vacancy rates climbed and rental rates fell as a result.As the year progressed, government-led stimulus programs in the Unites States, Europe and elsewhere began to take holdand by year’s end we began seeing signs that the recession had finally ended. But not before US unemployment topped 10%.While we don’t expect much new demand in 2010 as companies recover, we are starting to see corporate tenants act bytaking advantage of the tenants’ market to negotiate more favorable lease terms today in exchange for a longer commitment.We’ve come to call this practice “extend and blend,” and it’s a trend we expect will continue well into 2010. We also expectinvestment sales to increase in 2010 as banks and financial institutions clean up their balance sheets and move moreaggressively to dispose of commercial real estate loans and financially distressed real estate assets.NAI Global is pleased to present its 2010 Global Market Report. Now in its 24th year, the Global Market Report providescomprehensive market data and overviews on over 200 property markets around the world. This year’s edition is our mostcomprehensive report ever, with coverage of all primary markets and most secondary and tertiary markets worldwide. Usingboth narrative market reports and statistical charts, we provide you with market highlights, trends, demographic and businessprofiles, rental rates, vacancy rates and land prices. The 2010 Global Market Report puts a wealth of market intelligence atyour fingertips in a succinct and consistent market profile format.Dr. Peter Linneman, NAI Global’s Chief Economist and Principal of Linneman Associates, the leading real estate economicsconsulting firm, worked with us again this year to prepare the Global Outlook. Linneman Associates has added its experteconomic analysis and insights to the detailed local market information from NAI professionals worldwide to deliver theinformation you need on commercial real estate costs and market conditions around the world. We are proud of our relationshipwith Dr. Linneman and are pleased to be able to share his insights with you.All of the market information in the 2010 Global Market Report is available online at www.naiglobal.com and major marketsare updated periodically throughout the year. For the latest in commercial real estate industry news and trends, GlobalEconomic Outlook briefings, market updates and much more, visit www.naiglobal.com.Just as NAI Global provides you with in-depth knowledge and insight on markets around the world, our global managednetwork can help you achieve your real estate objectives no matter how large or small, anywhere in the world. Our clientscome to us for our deep local knowledge, which leads to results that are tangible, measurable and visible on their bottom line.We welcome the opportunity to serve you. If we can assist you with a current or future real estate requirement anywhere inthe world, please contact us at + 1 609 945 4000 or call your local NAI professional.Sincerely,Jeffrey M. FinnPresident & Chief Executive OfficerBuild on the power of our network. TM Over 325 offices worldwide. www.naiglobal.com1

■ ■ ■ Table of ContentsGENERAL INFORMATIONNAI Global President's Letter ..........................................................1Table of Contents...........................................................................2Note from Dr. Peter Linneman ........................................................3About Your Global Market Report ....................................................3GLOBAL OUTLOOKGlobal Outlook ...............................................................................4REGIONAL HIGHLIGHTSNortheast Highlights.....................................................................21Southeast Highlights ....................................................................22Midwest Highlights.......................................................................23Southwest Highlights....................................................................24West Highlights............................................................................25ASIA PACIFICMelbourne, Australia ....................................................................27ChinaBeijing .....................................................................................27Chengdu ..................................................................................28Hong Kong ...............................................................................28Shanghai..................................................................................29Xiamen ....................................................................................29Guam..........................................................................................30IndiaChennai ...................................................................................30Delhi, Gurgaon .........................................................................31Hyderabad, Pradesh..................................................................31Kolkata.....................................................................................32Pune, Maharashtra ...................................................................32Punjab .....................................................................................33Tokyo, Japan ...............................................................................33Kuala Lumpur Malaysia ................................................................34Singapore....................................................................................34Seoul, South Korea ......................................................................35Taipei, Taiwan ..............................................................................35CANADAAlbertaCalgary ....................................................................................37Edmonton ................................................................................37British ColumbiaVancouver................................................................................38Victoria ....................................................................................38Nova ScotiaHalifax .....................................................................................39OntarioOttawa.....................................................................................39Toronto ....................................................................................40Montreal ..................................................................................40Regina, Saskatchewan...............................................................41EUROPE MIDDLE EAST AFRICAVienna, Austria.............................................................................43The Baltics (Latvia/Estonia/Lithuania) ............................................43Sofia, Bulgaria .............................................................................44Prague, Czech Republic................................................................44Copenhagen, Denmark.................................................................45Finland........................................................................................45Paris, France ...............................................................................46Frankfurt am Main, Germany ........................................................46Atehens, Greece ..........................................................................47Reykjavik, Iceland.........................................................................47Tel Aviv, Isreal ..............................................................................48Almaty, Kazakhstan ......................................................................48Kuwait.........................................................................................49Oslo, Norway ...............................................................................49Doha, Qatar.................................................................................50Bucharest, Romania.....................................................................50Moscow, Russian Federation ........................................................51St. Petersburg, Russian Federation................................................51Belgrade, Serbia ..........................................................................52Johannesburg South, Africa..........................................................52Madrid, Spain ..............................................................................53Stockholm, Sweden......................................................................53Geneva, Switzerland.....................................................................54Zurich, Switzerland.......................................................................54Istanbul, Turkey............................................................................55Kiev (Kyiv), Ukraine.......................................................................55London, England United Kingdom..................................................56LATIN AMERICA AND THE CARIBBEANBuenos, Aires Argentina ...............................................................58Nassau, Bahamas ........................................................................58BrazilCampinas.................................................................................59Curitiba....................................................................................59Porto Alegre .............................................................................60Rio de Janeiro ..........................................................................60Sao Paulo.................................................................................61Santiago, Chile.............................................................................61San Jose, Costa Rica ...................................................................62Kingston, Jamaica........................................................................62MexicoCiudad Juarez, Chihuahua.........................................................63Guadalajara..............................................................................63Guanajuato, Guanajuato ............................................................64Mexico City ..............................................................................64Mexico (continued)Matamoros, Tamaulipas ............................................................65Mexicali, Baja California............................................................65Monterrey, Nuevo Leon .............................................................66Querétaro, Querétaro ................................................................66Reynosa...................................................................................67Saltillo, Coahuila .......................................................................67San Luis Potosi (SLP)................................................................68Tijuana, Baja California..............................................................68Torreon, Coahulia......................................................................69Caracas, Venezuela......................................................................69UNITED STATESAlabamaBirmingham ..............................................................................71Huntsville/Decatur County..........................................................71Mobile/Baldwin County ..............................................................72ArizonaPhoenix ....................................................................................72ArkansasJonesboro.................................................................................73Little Rock.................................................................................73CaliforniaInland Empire (Riverside/San Bernardino) .................................74Los Angeles County.................................................................74Marin County ..........................................................................75Monterey County.....................................................................75Oakland..................................................................................76Orange County........................................................................76Sacramento ...........................................................................77San Diego...............................................................................77San Francisco County..............................................................78San Mateo County...................................................................78Santa Clara County (Silicon Valley) ...........................................79Santa Cruz County ..................................................................79Sonoma County.......................................................................80Ventura County .......................................................................80ColoradoColorado Springs.....................................................................81Denver....................................................................................81DelawareDelaware & Cecil County Maryland...........................................82District of ColumbiaWashington, D.C. ....................................................................82FloridaFort Lauderdale.......................................................................83Ft. Myers/Naples/Port Charlotte/Bonita Springs.........................83Jacksonville ............................................................................84Marin & St. Lucie Counties ......................................................84Miami.....................................................................................85Orlando ..................................................................................85Palm Beach County.................................................................86Tampa Bay..............................................................................86GeorgiaAtlanta....................................................................................87HawaiiHonolulu .................................................................................87IdahoBoise......................................................................................88Southeast (Idaho Falls/Pocatello)..............................................88IllinoisChicago .................................................................................89Springfield ..............................................................................89IndianaFort Wayne .............................................................................90Indianapolis ............................................................................90IowaCedar Rapids, Iowa City...........................................................91Davenport/Bettendorf, Iowa & Rock Island/Moline, Illinois ..........91Des Moines.............................................................................92Sioux City ...............................................................................92KansasWichita ...................................................................................93KentuckyLexington................................................................................93Louisville ................................................................................94LouisianaBaton Rouge...........................................................................94Monroe...................................................................................95New Orleans ...........................................................................95MaineGreater Portland/Southern Maine .............................................96MarylandBaltimore................................................................................96Suburban Maryland.................................................................97MassachusettsBoston....................................................................................97Western (Greater Springfield) ...................................................98MichiganDetroit ....................................................................................98Grand Rapids..........................................................................99Lansing ..................................................................................99MinnesotaMinneapolis/St. Paul..............................................................100MissouriKansas City...........................................................................100St. Louis ...............................................................................101MontanaBozeman ..............................................................................101Missoula...............................................................................102NebraskaLincoln .................................................................................102Omaha .................................................................................103NevadaLas Vegas.............................................................................103Reno ....................................................................................104New HampshireManchester...........................................................................104Portsmouth ...........................................................................105New JerseyAtlantic County......................................................................105Middlesex/Somerset Counties ................................................106Northern New Jersey.............................................................106Ocean/Monmouth Counties (“Shore Market”)..........................107Princeton/Mercer County .......................................................107Southern New Jersey ............................................................108New MexicoAlbuquerque .........................................................................108Las Cruces ...........................................................................109New YorkAlbany ..................................................................................109New York City........................................................................110Long Island...........................................................................110North CarolinaAsheville...............................................................................111Charlotte...............................................................................111Greensboro/High Point/Winston-Salem ...................................112Raleigh/Durham ....................................................................112North DakotaFargo....................................................................................113OhioAkron ...................................................................................113Canton .................................................................................114Cincinnati .............................................................................114Cleveland..............................................................................115Columbus .............................................................................115Dayton..................................................................................116OklahomaOklahoma City.......................................................................116Tulsa ....................................................................................117OregonPortland................................................................................117PennsylvaniaAllentown..............................................................................118Berks County ........................................................................118Bucks County........................................................................119Harrisburg/York/Lebanon .......................................................119Lancaster .............................................................................120Philadelphia ..........................................................................120Pittsburgh.............................................................................121Schuylkill County...................................................................121Wilkes-Barre/Scranton/Hazleton.............................................122South CarolinaColumbia ..............................................................................122Greenville/Spatanburg/Anderson Counties ..............................123South DakotaSioux Falls ............................................................................123TennesseeChattanooga .........................................................................124Clarksville .............................................................................124Knoxville ...............................................................................125Memphis ..............................................................................125Nashville...............................................................................126TexasAustin...................................................................................126Beaumont.............................................................................127Corpus Christi .......................................................................127Dallas...................................................................................128El Paso .................................................................................128Fort Worth.............................................................................129Houston................................................................................129Rio Grande Valley (McAllen/Mission/Brownsville/Harlingen) ......130San Antonio ..........................................................................130Texarkana (Bowie County, Texas/Miller County, Arkansas) ........131UtahSalt Lake City........................................................................131Washington County ...............................................................132VermontBurlington.............................................................................132VirginiaNorthern Virginia ...................................................................133WashingtonSeattle/Puget Sound..............................................................133Spokane ...............................................................................134Tri-Cities...............................................................................134WisconsinMadison ...............................................................................135Milwaukee ............................................................................135Northeastern Wisconsin (Fox Valley/Green Bay) .......................136WyomingCasper..................................................................................136Jackson Hole ........................................................................137Glossary....................................................................................1382010 Global Market Report ■ www.naiglobal.com 2

■ A Note From■ Dr. Peter Linneman■ About Your■ Global Market ReportOnce again, Linneman Associates is pleased to joinNAI Global in the production of the 2010 Global MarketReport. For years, NAI Global has created this annualreport, the industry’s source for in-depth market-by-marketdata, at a level of detail unavailable from other resources.Since our two organizations forged a strategic alliancein 2003, we have provided NAI professionals and clientswith comprehensive market analyses, customized reportsand our perspective on macroeconomic indicators as theypertain to real estate markets.By combining NAI Global’s local market data with our realestate economics expertise and proprietary projections,we jointly provide the reader with unmatched insight intothe state of local, regional, national and international realestate markets. Linneman Associates and NAI Globalcontinue to jointly offer customized real estate marketanalyses and reports. Enrich your business and investmentefforts by utilizing this combination of real estate expertise,including the Linneman Associates and NAI market analysesand real estate decision making tools. For more information,call your local NAI office.Dr. Linneman holds both Masters and Doctorate degreesin economics from the University of Chicago and is thePrincipal of Linneman Associates. For over 25 years hehas provided strategic and financial advice to leadingcorporations. Dr. Linneman is the author of the leadingreal estate finance textbook, Real Estate Finance andInvestments: Risks and Opportunities. His teaching andresearch focuses on real estate and investment strategies,mergers and acquisitions and international markets. Hehas published over 60 articles during his career. He iswidely recognized as one of the leading strategic thinkersin the real estate industry.Dr. Linneman also serves as the Albert SussmanProfessor of Real Estate, Finance, Business and PublicPolicy at the Wharton School of Business, University ofPennsylvania. A member of Wharton’s faculty since 1979,he served as the founding chairman of Wharton’s RealEstate Department and the Director of Wharton’s Zell-LurieReal Estate Center for 13 years. He is the foundingco-editor of The Wharton Real Estate Review.The 2010 Global Market Report is a unique tool that reviewsand summarizes the real estate activities of the past year onmore than 200 property markets worldwide. As a referencetool, it reviews values, economies, social factors and otherconditions that impact a market.Each analysis was completed by the NAI Global Memberrepresenting the given market. These local professionals areexpert at reviewing their markets, identifying trends andreporting market activity. The NAI Global Member making theanalysis for each market is identified and may be contactedfor further information. Most of the data in the Global MarketReport was collected during the fourth quarter of 2009.Rental rates for Class A and Class B office space, retail andnew construction are expressed in gross costs per unit area,indicating the landlord pays all expenses except for Europe,where rental rates are reported as net. Industrial space rentsare quoted in terms of net rental rates, meaning the tenantpays for most of the operating costs, such as utilities, maintenance,and repairs and cleaning. On all charts, N/A means theinformation was not applicable or not available at press time.For more information about this report, or to order your owncopy for $695, please call 609 945 4000. Additional researchreports and whitepapers are available at www.naiglobal.com.Visit the NAI Global blog for real time commentary on industrynews and trends at blogs.naiglobal.comThe 2009 Global Market Report is a copyrighted publicationof NAI Global, published in December 2009, and should notbe reproduced without full permission. Additional copies areavailable from NAI Global. Demographic data and indiceswere provided by SRC, LLC.Dr. Peter Linneman, Chief EconomistNAI Global© 2009 NAI Global. All rights reserved.2010 Global Market Report ■ www.naiglobal.com3

Global OutlookCommercial real estate markets across the United Statesexperienced the full impact of the global recession in 2009.The precipitous decline in transaction volume that began in2008 continued unabated throughout most of 2009 as risingunemployment and general uncertainty about the near-termeconomic outlook weighed on demand.Rising vacancy rates and declining rental rates were evident in virtuallyevery market and property type, with weak demand and agrowing supply of sublease space further eroding marketfundamentals. Office space in the central business districtswas especially hard hit; the national average vacancy rate fordowntown Class A office space reached 13.9% in 2009, anincrease of 35% over 2008, and the national average rentalrate fell 21.6% to $37.09/SF/YR. Suburban Class A space faredonly slightly better as the national average vacancy rate rose to16.9% in 2009, up from 13% in 2008, and the national averagerental rate slipped 4.6% to $25.11/SF/YR.The retail segment was also hit hard as several notable retailersand chain restaurant operators filed for bankruptcy and countlessothers closed stores to cut costs. The national average vacancyrate in regional malls reached 7.1% in 2009, up from 5.6% in2008, and the national average rental rate for mall space fell10.6% to $32.76/SF/YR. The vacancy rate in power centers, afavorite of the struggling big-box retailers, soared to 9.8% in 2009,up from 5.9% in 2008, and the average rental rate fell 6.3% to$19.46/SF/YR.The impact of weak consumer demand was also evident in theindustrial sector, where new supply compounded market woes.The national average vacancy rate for bulk warehouse spacetopped 11.1% in 2009, the highest level in five years, but thenational average rental rate dipped only 1.3% to $4.57/SF/YR.Fortunately, these negative movements followed a very healthypeak, and tight credit has greatly curtailed new constructionstarts. While it is clearly a “tenant’s market” in all commercialsectors, many markets already have begun to stabilize, andshould begin to improve in mid-2010 as space users act totake advantage of the most favorable market conditions seen inyears. We expect a healthy balance between supply and demandat that time.The investment market, stagnant throughout 2009, is also expectedto return in 2010. Billion of dollars have been amassed in privateequity funds ready to pounce on the impendingwave of distressed assets and REO properties expected tohit the market in the coming year.National Average Rental RatesNational Average Rental RatesNational Average Vacancy RatesNational Average Vacancy Rates2010 Global Market Report ■ www.naiglobal.com4

US OverviewBy Dr. Peter Linneman, Chief Economist, NAI GlobalThe current recession is the worst downturn in economic activity since the GreatDepression, a downtown that has been hurt more than helped by government interventionand inconsistent—and often unpredictable—government policy. But barring more government“salvation,” we hit bottom in May 2009. Without disastrous government “salvation,”we probably would have bottomed in January 2009. Contrary to rhetoric, governmentinterventions both lengthened and massively deepened the current super-recession.GDP grew at an annualized rate of 2.8% in the third quarter and employment will lag byabout a year. When job declines end, there will be a net loss of about 8.5 million jobs.This is equivalent to more than four years of normal job growth.To put the situation in perspective, real GDP was about $14.8 trillion (2008 $) at the startof September 2008, falling by 3.8% (US$566 billion) year-over-year.The US trade deficit has plunged, reflecting the horrific loss of global confidence in theintegrity and productivity of US capital markets. The US trade deficit has fallen to -2.8%of US GDP, and -0.9% of rest-of-world GDP. Always remember that the US trade deficitis not a reflection of the lack of competitiveness of our goods and services, but rather areflection of our capital market superiority.The fundamental problem remains: It is impossible to predict what will happen next,as every day brings new seemingly ad hoc rules. A perfect example occurred whenthe list of autos eligible for clunker tax rebates was suddenly revised on the eve of theprogram without any explanation. And tax, healthcare and regulatory proposals abound,with little clarity as to the ultimate outcomes or costs.Early in 2009, monthly job declines were wiping out 500,000-750,000 jobs. In July, thatnumber had diminished to just over 3,000,000, diminishing even further to 111,000 inOctober and 11,000 in November. Year over year through November 2009, the US lost3.5% of all payroll jobs.On a 12-month moving average basis through September, just 26% of industries are addingworkers, versus the eight-year average of 46%. Not surprisingly, all sectors by major SICcode, except the government (+132,000), experienced significant losses from the beginningof the recession in December 2007 through November 2009. On an absolute basis, thebiggest losers were the manufacturing (-2.1 million); trade, transportation, and utilities(-1.7 million); construction (-1.6 million); and professional and business services (-1.3 million)sectors. On a percentage basis, construction (-20%) and manufacturing (-15.5%) were theworst performers. However, job losses continue to slow with a decline of just 11,000 inNovember 2009. Professional and business services bottomed in August 2009 andgained 148,000 (0.9%) over three months through November. This was driven largely byeducation and health services, which increased throughout the recession by 858,000(4.6%) between December 2007 through November 2009.Real GDP Growth RateYear-Over-Year Percent Growth1086420-2-4-61984 1989 1994 1999 2004 2009PercentIn November 2009, the unemployment rate stood at 10%, an increase of 510 basispoints since December 2007. Over the same period, the median unemployment durationhas risen by 11.7 weeks, to 20.1 weeks (a nearly 140% rise), with the percentunemployed more than 27 weeks rising from a low of 17.5% in December 2007 to2010 Global Market Report ■ www.naiglobal.com5

38.3% in November 2009. At the same time, short-term (five weeks or less) unemploymentspells are back to the same level (1.8%) as December 2007, after peaking at 2.4%in January 2009. The truth is that many more people are unemployed, and for longer,as a result of rule-destroying government interventions, though modest improvementsare emerging.Teen workers accounted for about 19% of the 7.2 million jobs lost between January2008 and November 2009. Thank you, Congress, for the minimum wage increase. Joblosses continue to be extraordinarily male-centric, with 4.75 million of the 7.2 million totallost jobs concentrated among males older than 19, and only 1.69 million among womenolder than 19. This reflects the high concentration of males in manufacturing, constructionand finance, while women are disproportionately employed in the less adverselyimpacted healthcare and education sectors. As a result, females now hold half of all USjobs for the first time in US history.Percent403530252015105Manufacturing as a % of Total Employment(with trendline)01940 1950 1960 1970 1980 1990 2000The biggest uncertainty is not the capital markets; it is the Capitol markets. Despite theserial ineffectiveness of government interventions, investors are slowly coming out of theirtortoise shells. The early signs of recovery are fragile because of the surge in oil pricesback to $70 per barrel. At $70 per barrel, it will take much longer to rebuild consumer confidence,a precursor for a recovery. GDP bottomed in the third quarter, and employmentwill lag by about a year.In early December 2009, yields on 10-year Treasuries were around 3.5%. We believe 10-year Treasury yields are still some 125 basis points too low. If all were normal, 10-yearTreasury yields would be around 4.75-5%, where they hovered before October 2007.Recently, LIBOR and 30-day Treasuries have raced to zero. A low LIBOR has becomethe life blood for many borrowers with floating rate debt, and a rate spike has the potentialto crush many borrowers. Long-term Treasury Inflated-Protected Securities (TIPS)returns have narrowed remarkably, even as inflationary threats loom. They experienceda yield increase to 3.09% in November 2008, and stood at 1.87% in November 2009.Residential mortgage delinquencies have risen among all products since hitting lows inlate 2005. However, these delinquencies are highly concentrated in recession torngreater-Ohio (Ohio plus 100 miles beyond the Ohio border) and the boom markets ofsouth/central Florida, Arizona, Nevada and California. Elsewhere in the US, delinquenciesremain at cyclical norms.Commercial mortgage delinquency rates have risen across the board, most visibly atbanks and thrifts, and CMBS. CMBS issuance in the US remains nearly comatose, withno new issues in eight out of the first 10 months of the year. The only positive glimmerwas that the CMBS market managed to eke out a handful of deals in June (US$600million) and July 2009 (US$300 million). And the recent DDR issuance is decidedly apositive sign.The best news for the US economy continues to be that the US. housing market bottomedin February 2009. Single family starts hit (a very low) bottom of roughly 355,000units in January and February, increasing unsteadily to 511,000 in September and476,000 in October. The inventory of homes held by builders for sale has plummeted to239,000, as new home production over the past two years has been insufficient toreplace the more than 350,000 units destroyed each year. MLS home prices (whichIndex ValueU.S. National Home Price Indices3002602201801401001989 1992 1995 1998 2001 2004 2007Case-Shiller NAR FHFA2010 Global Market Report ■ www.naiglobal.com6

exclude sheriff sales) have risen nationally, and in almost every MSA, for the past sixmonths. Thus, while many foreclosure sales in the weakest markets continue to dragdown the Case-Shiller and NAR indices, the preponderance of homes sold by residentowners has seen price rebounds. This sector’s rebound over the next three to four yearswill be a powerful growth engine.The good news is that broad equity markets have rebounded, reflecting both improvedprices and cyclically low earning levels. Since bottoming at 676 in March, the S&P 500has risen by 62%, and stood at 1,095 in early December, though still 29% below its peakof October 2007. This rebound in broad equity pricing is good news for commercial realestate, as it will slowly work its way through to real estate. While real estate pricing willlag public markets, the rebound should serve to re-equitize many properties crushed bythe collapse in late 2008 and early 2009. After steadily declining since the end of 2006,REIT FFO multiples showed the first sign of changing course in the third quarter of 2009.In December, the overall REIT FFO multiple rose to approximately 14.1, compared to thelong-term average of 12.1.The Capital Asset Pricing Model (CAPM) indicates that public real estate pricing hasimproved dramatically relative to its long-term risk during the past six months. Inparticular, the under-pricing of REITs has gone from 230% in March, to 3% in December.A comparative risk analysis, which assumes that the ownership of the perpetuity leaseclaim should generate approximately the same expected return as the perpetuity BBBdebt claim, suggests that real estate has gone from almost 70% under-priced to 9.5%over-priced. Research indicates that public pricing leads private pricing by roughly 18months. This suggests a rebound in private pricing remains about a year away.US Property SectorsOffice. In the third quarter of 2009, the national office vacancy rate rose to 14.3%, a 70-basis point increase from last quarter, according to NCREIF. This puts US office vacancyabove the “natural rate” of roughly 10%. Severe job losses have resulted in increasingshadow or sublease space along with tenant inducements. These availabilities areexpected to increase through 2010. The first quarter of 2008 marked the first time thenational office vacancy rate surpassed 13% since the third quarter of 2006, and it hasbeen rising since.Industrial. NCREIF’s US industrial vacancy rate (primarily for institutional quality properties)continued to increase, from 10% in the second quarter of 2009 to 10.8% in the thirdquarter. The two data series moved in lock step from 1987 to 2004. Since then, theNCREIF series has trended downward more sharply, but changed course over the lastthree quarters. This initial divergence indicates that the institutional-grade properties inthe NCREIF survey enjoyed greater demand than the overall market, but are now beingaffected by the wide-reaching economic downturn.PercentS&P 500 Index1,6001,4001,2001,00080060040020001955 1961 1967 1973 1979 1985 1991 1997 2003 2009Real Estate (Under) Over Pricing Using:Percent50CAPMBBB Yld Benchmark0-50-100-150-200-250-3001994 1996 1998 2000 2002 2004 2006 2008Liquidity premium assumed to be zero.Vacancy Rates by Property Type201510501983 1988 1993 1998 2003 2008Source: NCREIFOffice Retail Apartment IndustrialU.S. Commercial Construction120$ Billions100Office Industrial Retail Hotel Multifamily8060402001993 1995 1997 1999 2001 2003 2005 2007 2009Multifamily Construction and Vacancy TrendsMultifamily. The Census Bureau’s quarterly Housing Vacancy Survey indicates that the USmultifamily vacancy rate rose in the third quarter to 11.1%, from 10.6% in the secondquarter of 2009. This series has generally been hovering around 10% since late 2003.For NCREIF’s institutional properties, the national vacancy rate declined by 20 basispoints, from 7.4% in the second quarter to 7.6% in the third quarter of 2009. Thisdiscrepancy in vacancy rates is due to the fact that the NCREIF properties are of higherThousands of Units3503002502001501005001990199219941996199820002002200420062008Total in Bldgs w/ 5 or More Units (Thousands)1110987654VacancyVacancy Percent2010 Global Market Report ■ www.naiglobal.com7

quality than the Census properties. Thus, better-quality properties are exhibiting betterfundamentals. Over the last 10 quarters, the Census vacancy rate has been relativelyflat, while the NCREIF series had exhibited a sharp increase, as unsold high-endcondos were converted to rental units. The first quarter decline indicated that the condomarket overhang may be subsiding.Multifamily starts are about a quarter of their historic norm. They have fallen 75% inabout seven months, and will remain low due to the shortage of available constructioncapital. This is not such a horrible thing in the near term, because there is a fair amountof vacancy due to the fact that as the economy shed jobs, people doubled up. Younggraduates stayed with their parents, immigrants stayed with their cousins and brothers,etc. This will continue until labor markets improve and we start to add jobs to the economy.The lack of construction means that excess inventory is being absorbed, but it istough on the construction business. The multifamily sector will take longer to reboundand we will not see a recovery until late 2010.Retail. NCREIF reported that the national retail vacancy rate jumped to 10.7% from9.8% in the second quarter of 2009, after breaking 6% in the second quarter of last year,the first time since 1999. The vacancy rate rose 300 basis points from year-end 2008,and just over 315 basis points from a year earlier. The University of Michigan consumerconfidence index rose to 70.6 in November 2009, compared to its low of 55.3in November 2008. The index had not seen the low of 2008 since 1980. Real retail salespeaked in November 2007 at US$337 billion, declined to US$293 billion in April 2009,and stood at US$296 billion in October through September 2009. On a monthly annualizedbasis, retail construction has been declining steadily, and as of September 2009was recorded at US$34.7 billion, down from its October 2007 high of US$62.6 billion.CanadaCanadian growth, led by export and commodity sectors (base metals, oil and gas)performed well through early 2008. However, the financial crisis, the declining USmarket and general softening of the global economy slowed the Canadian economy inlate 2008 and forced a sharp downturn in 2009. A rebound in commodity demandenabled the economy to stabilize in late 2009. The Canadian economy is expected tofall 2% year-over-year in 2009, recovering in 2010 with real GDP rising by 3%.The country continues to be subjected to multiple elections and the constraints of aminority-led government. Unemployment remains above 8%, and is expected to easeslightly in 2010 as the country emerges from recession. The Canadian dollar has marginallystrengthened against the US dollar in 2009: in March the CAD/USD was $1.26compared to $1.06 in November.The ownership of commercial real estate in Canada is concentrated in large pensionfunds, REITs and large domestic corporate investors. The best assets remain in relativelystrong financial hands with conservative leverage. Pools of capital are looking tothe US, Europe and Asia to satisfy the demand for high quality real estate investmentopportunities.Land prices softened and cap rates increased in 2009. Overall, 2010 is expected to bea challenging year, with pockets of strength in western Canada. Transaction volume isslowly beginning to improve despite a slow economy. The fundamentals of commercial2010 Global Market Report ■ www.naiglobal.com8

eal estate are stabilizing. Prudent lending practices for home buyers, developers andinvestors differentiate the Canadian reality from the US experience. As liquidity slowlynormalizes, many sectors of the domestic economy will recover sooner than expected.The retail sector will suffer the longest as consumer spending and consumer confidencewill remain sluggish through 2010.There are two distinct operating environments in commercial real estate: easternCanada (e.g., Toronto, Ottawa and Montreal) and the western provinces (e.g.,Vancouver, Victoria). Provincial markets such as Saskatchewan have emerged in thepast few years.Toronto and Eastern CanadaBecause Eastern Canada is the country’s manufacturing base, both the Ontario andQuebec economies are straining under slow business conditions. In Toronto, a recentsurge in office and condominium construction will continue to overhang well into 2010 asdevelopers struggle with fewer tenants and a difficult credit environment. DowntownToronto and suburban Class A vacancies are about 9%. Retail space in Toronto is harderhit with a 10% vacancy rate.The greater Montreal area accounts for more than 21% of the entire Canadian officemarket, with an office vacancy rate of 8%. The hotel industry in Montreal continues toexpand, although industrial development has slowed with the expectation of a recoveryin 2010. With its reliance on the government sector, Ottawa remains stable while Halifaxretains stability from a solid base of educational, medical and research facilities.British Columbia (Vancouver and Victoria)The western regions of the country possess abundant natural resources (oil and gas,agriculture, potash, uranium, diamonds, gold, etc.), allowing them to weather the recession.Looking forward, the 2010 Winter Olympics will provide a boost to the regionaleconomy via tourism inflows. Commercial real estate remains strong in British Columbia.The Vancouver office market has a vacancy rate of 7%, but with little new product comingonline in 2010-2011. This market will improve as the regional economy strengthens.The Victoria office market, which is dependent on the space demands of the provincialgovernment, has seen increasing vacancies as government spending is cut.Industrial real estate in Vancouver continues to outperform other areas with averagevacancy rates at about 4%. In Victoria, the industrial rents are stable due to lack of newsupply and vacancy rates less than 1%.Retail space continues to be hit as the credit/financing environment remains tight, mutingconsumer demand. The retail vacancy rate is 8% in Victoria and is expected toimprove very little through 2010. Similarly the Vancouver retail market is under pressure.However, the 2010 Winter Olympics coupled with population growth near the CBD willhelp this sector recover.Investment in commercial product in this region has been resilient with cap rates around6-7% for Victoria and 6.5-8% for Vancouver. The Greater Vancouver investment marketshowed signs of recovery in the third quarter of 2009, after five quarters of flat or declininglevels of activity. Investment products in the rest of Canada remain in low supply.2010 Global Market Report ■ www.naiglobal.com9

SaskatchewanSaskatchewan is a smaller, resource-and-farm based economy that has blossomedin the past four years, attracting small- to mid-sized investors. In 2009, Saskatchewanhas resisted the general economic downturn and proven to be an “oasis” due to itsabundant natural resources. The two largest cities are Regina and Saskatoon; with acombined population over 500,000 and unemployment rate below 5%, Saskatchewanhas weathered this recession best of all Canadian markets.Industrial market vacancies are at an all-time low, while rental rates continue to hold updue to low supply and little new construction. Although the Regina office market hasexperienced declining absorption, vacancy rates remain extremely low at 1.75%. Rentalrates will spike up in 2010 as the economy emerges from recession and drives updemand for office product. Expansion continues in the retail sector in Regina with thenew neighborhood of Harbor Landing.The Saskatchewan investment market remains strong with interest from local investors.Cap rates are between 8-9% for well-located, well-tenanted projects.Demand for agricultural land has risen steadily in the past three years. As pent-up demandfor natural resources and commodities re-emerges, rural land values are expected toimprove.Europe-Middle East-AfricaWhile most of Europe remains firmly in the grip of recession, the worst is over and therecovery is within sight. Within the Euro area, GDP growth is forecast at -3.8% for 2009(as of mid October 2009), recovering to +1.2% in 2010. Within those figures, France isexpected to show -2.1% in 2009, and +1.3% in 2010. Germany growth rates for 2009and 2010 are expected to be -4.9% and +1.6%; and for the UK, -4.4% and +1.4%,respectively. Both Germany and France returned to positive GDP in the third quarter, butthe UK lagged at -0.4%. While the figures in Central and Eastern Europe are bleaker for2009, they too will see recovery in 2010. Russia for example, will shrink by 7.0% in 2009and rise 2.5% for 2010. Major Middle Eastern countries are expected to reverse declinein 2010, with GDP growth for UAE and Saudi Arabia predicted to be 3.3% and 4.1%,respectively.Unemployment in the Euro area was 9.6% (as of August 2009) while industrial productionhad fallen by 15.4%. Inflation is forecast at 0.4% for 2009. The Euro has strengthenedfurther against the US dollar (currently 1.50) in the last 12 months, as the EuropeanRepo rate has fallen to 2%, with the UK Base Rate remaining at 0.5%. Consumerdemand across Europe remains weak with zero growth in Central and Eastern Europe.However, industrial statistics in the 16-country Euro area increased by 0.9% in August,following 0.2% in July.Space demand in the EMEA region remains weak in all sectors with office vacancy ratesclimbing to their highest levels since 2004. Fortunately, most of the western citiesentered the recession with little office development. But cities like Moscow, Dubai or Kiev,where construction was booming, are being crushed. Development activity has declineddramatically, and in all markets, many tenants have put space up for sub-letting.2010 Global Market Report ■ www.naiglobal.com10

Office rents have fallen across the region, with prime rents down by about 10% onaverage from mid-2008 to mid-2009. Markets in Austria, Germany (excluding Berlin),Switzerland and Netherlands have proven more resilient than others. Vienna, for example,has seen a 5% decline in rental values, whereas markets such as Dubai, Dublin, Tel-Aviv,London, Madrid, Moscow, Oslo and Warsaw have seen far more significant declines.Rents in Moscow and Kiev are off more than 50% from their peak. In virtually all markets,property owners are offering increased incentives, such as extended rent-free periods(several years in some markets), and contributions to fit-out costs.Retail rents, particularly in Western Europe, have withstood the recession better thanthose in the office sector. Rents have held steady in Austria, Belgium, France, Germany,Israel, Italy, The Netherlands, Portugal, Sweden, Switzerland and London (West End).However retailers, apart from select discounters and those in the food sector, haveplaced expansion plans on hold, and there have been some notable failures in thesector. As in previous recessions, the gap between prime and secondary space haswidened as retailers upgrade from secondary to prime locations. As in the office sector,development activity has been sharply curtailed, particularly in the Central and EasternEuropean (CEE) markets.The recession has also hit the warehouse/industrial sector. The most adversely affectedare Hungary, Ireland, Israel, Poland, Portugal, Russia, Spain, Ukraine and Dubai, all ofwhich experienced rental declines in excess of 20%. Most notably, industrial productionexperienced a 15% per annum decline, while retail volume dropped by 2.6% per annumthrough August 2009. Food and discount retailers are faring relatively well, but manyoccupiers are downsizing, seeking to rationalize their existing space. Industrial developmentactivity has virtually stopped across the continent.Investment volumes have fallen sharply across the region. In the first half of 2009,approximately €25 billion were invested in European property – a mere 20% of the corresponding2007 volume as institutional investors have adopted a wait-and-see attitude.Due to concerns about the security of income streams, buyers are exclusively seekingprime properties with long-term leases with notable transactions completed in France andthe UK. The latter has attracted some international investors, as values are expected torebound as economies bottom. German open-ended funds are slowly returning to themarket, but are restricting their search to prime, well-leased properties. Foreigninvestors are taking advantage of the weakness of the UK Pound, the availability of longterm leases with upward-only rent reviews and historically high yield levels. A shortageof prime stock is beginning to nudge yields down.Prime office yields have increased across the region, with the exception of Switzerland,though the rate of increase has slowed in the more mature western markets. In the UK,for example, yields in the City of London are now around 6.5%, an increase of 225 basispoints from the peak. Yields in London’s West End are now 5.25%, an increase of 175basis points. Current prime yields in Paris are around 5.75%, an increase of 215 basispoints. In Frankfurt they are 5.4%, an increase of 40 basis points. These corrections lookrelatively small compared with shifts of 650 and 450 basis points in Kiev and Moscow,respectively. The focus of investors on prime sector properties has widened the gapbetween the prime and secondary yields.2010 Global Market Report ■ www.naiglobal.com11

As 2009 draws to a close, there is a mood of cautious optimism for 2010 and 2011.However, a slow recovery will generate further value declines in many locations, particularlyin the CEE markets.Latin America and the CaribbeanIn the first quarter of 2009, the global economic slowdown clearly affected Latin Americaand Caribbean countries. However, the “hit” during the year was not as great as feared,with Brazil, Peru, Panama and Colombia registering positive growth. However, realestate development slowed in all countries as many developers decided to either waitout the storm before breaking ground, or deliberately slow the pace of construction.Consumer demand remained comparatively healthy in most of the larger countries, withthe notable exceptions of Argentina and Mexico. However decreased flow of investmentcapital, corporate credit and the greatly diminished overseas demand for goods and rawmaterials has adversely impacted the region.Projections for the region in 2010 are optimistic, depending upon the country. Butgrowth will depend to a large degree on the depth and breadth of a global economicrecovery. The increasing level of construction and manufacturing worldwide will positivelyimpact the region, especially for raw materials and commodities. Many countries in theregion have been growing domestic demand, but most remain dependent upon overseasdemand. Along with the implementation of measured fiscal policies and themaintenance of adequate reserves, most Latin American and Caribbean countries arepositioned to prosper in the upcoming recovery.The Latin America and Caribbean region has been able to weather the economic crisisbecause most real estate projects and capital investments are done with equity ratherthan debt. This served to insulate the region from the credit/financing crisis with theexception of Mexico, whose economy is heavily tied to the US and Canada and wheremuch financing is done in dollar denominated debt. Even with the continued diversionof credit to the tier one countries during 2010, most real estate markets in the regionwill prosper.The likely scenario is that demand for real estate will rise in 2010; and developmentwill increase as developers and investors regain their confidence. Positive real estatesupply growth will occur in the larger economies (Brazil, Chile, Peru, Panama andColombia), but there will also be a modest revival in the smaller economies and Mexico.However, growth in resort and hotel development will lag. Greenfield development in theindustrial and office sectors is expected to continue due to the lack of true Class Aproduct throughout the region (with the exception of Mexico). Class A office vacancyrates continue below 2-5% in Santiago, Buenos Aires, Bogota and Sao Paulo.With the notable exceptions of Venezuela, Ecuador and Bolivia, most Latin Americanand Caribbean countries will experience economic growth in 2010. The challengeremains for governments to provide adequate infrastructure to meet the ever-growingneeds of industry.ArgentinaThe economy and growth were very impacted negatively during 2009 due to loweragricultural commodity prices and weak external demand. Global exports should2010 Global Market Report ■ www.naiglobal.com12

increase, as should the agricultural, textile and service sectors. Inflation is expected tostay high through 2010.There continues to be a shortage of available Class A product in the office, industrial andretail sectors. The office vacancy continues to be below 2%; industrial and downtownretail are below 3%. The construction pipeline is insufficient to meet current and futuredemand. Although in previous years the tight supply drove up prices, the slower rate ofabsorption in 2009 resulted in the softening of rental rates.The BahamasBoth the tourism and banking industry – the two key economic drivers – were negativelyimpacted in 2009. US and European tourist travel to the islands slowed as did constructionof new hotel, resort and residential projects. The projected recovery in the USand Europe in 2010 will provide some relief; but tourism is not projected to increasesignificantly until 2011.Downtown retail and office market absorption continues to slow, but the rate of declinehas decreased. Due to abundant parking and better access, suburban markets continueto attract new growth and expansion. Demand has kept vacancy rates low and spurredbuild-to-suit opportunities, although demand for suburban retail rents dropped somewhatin 2009. Demand is expected to increase during 2010, especially for industrialspace and more modern Class A space. Foreign investment in residential developmentand hotels is largely on hold, while cap rates range from 7-11%.BrazilBrazil has proved to be one of the world’s most resilient economies, emerging from therecession in the second quarter of 2009 with 1% quarter-over-quarter growth. Theexpectations of a continued economic boom are partially due to oil in the country’s largeoffshore oil deposits; Brazil’s hosting of the World Cup in 2014 and of the Olympics in2016; alternative energy sources (e.g., ethanol); and continued policy and bureaucraticreforms. In the short term, high business loan rates and bureaucracy will limit the country’sgrowth. Risk perception among international investors continues to decrease, andthe Brazilian Real continues to strengthen against the US dollar, from its low of 2.16 inlate 2008 to 1.76 in late 2009.During 2009, the Brazilian real estate market continued to grow, albeit at a slightly slowerrate than previous years. The country remains an attractive target for Greenfield Class Aoffice, retail and industrial development and speculative real estate acquisition. Leaserates for all product types remain stable while cap rates hover between 9-11%.ColombiaColombia continues to be the region’s secret success. Over the last 15 years, thecountry has steadily grown and improved its democratic credentials. The Peso hasremained relatively stable rate at about 2,000 to the US dollar. The imminent finalizationof the Free Trade Agreement with the US will further benefit the economy.Real estate development continued to be relatively strong during 2009 with demandexceeding supply. Prices for office, retail and industrial space increased slightly in the firsthalf of the year, but flattened in the second half as the global recession began to hit thecountry’s economy. International investment funds still have yet to venture strongly intoColombia, but the domestic capital sources are investing actively in Greenfield projects.2010 Global Market Report ■ www.naiglobal.com13

Global investment interest largely disappeared during 2009, but is expected to return in2011. Given the lack of a transparent investment market for existing product, cap ratesare difficult to identify, but are estimated to be 12% or greater.ChileChile continues to be the benchmark for most countries in the region as the Chileaneconomy recorded another respectable year of growth. Inflation dropped while the 7%unemployment rate is among the lowest in Latin America and well below the US rate. Thedrop in the prices for copper and other commodities paired with the decline in globaldemand adversely affected the Chilean economy. However, Chile largely avoided any crisisdue to capital reserves built up when commodity prices were high in 2007-2008. Itscontinued attempts to decrease its dependence on imports of natural gas by developinghydroelectric projects in the Andes is hindered by ecological groups. Nevertheless, Chileincreased its domestic electricity supply by 7%. Chilean companies, profiting from theirstrong macroeconomic climate, continued to cautiously expand operations into othercountries, including Peru, Colombia, Argentina and Brazil.Demand for quality commercial real estate continues to be strong, albeit slightly diminished,with vacancies remaining below 3%. Of the developments slated for completionin 2009, about 35% were completed on time, 50% were delivered a few months late,with the rest expected in 2010. Rental rates remained stable and cap rates are about8-10%.Costa RicaAlthough the US-Costa Rica Free Trade Agreement went into effect on January 1, 2009,strong benefits have yet to be achieved. The opening up of the telephony sector in 2010with the combined surge of insurance operators (from the 2009 sector opening) shouldprovide a boost to the economy; however, the pace of reform remains slow.Real estate activity slowed during 2009 with resort, hotel and second home sectors onthe Pacific Coast hit hard, with activity dropping about 65%. In the municipal area of SanJosé, activity decreased 15-20% in the office and industrial sectors, but the retailmarket declined by even more. Rental rates have softened in the office and industrialsectors, dropping 10-15% for retail. For 2010, absorption in the commercial sectors isexpected to increase slightly, with a lesser increase in retail. Rental rates are expectedto be stable in 2010, but will firm up in the office and industrial sectors as absorptionincreases. Along the Pacific Coast, recovery and renewed investor interest should startin early 2011. Land prices are weak as owners try to cash out. Cap rates are above 9%and project IRRs are above 18%.MexicoMexico was the hardest hit of the larger economies given falling auto demand from theUS and the impact of swine flu on tourism. GDP is expected to contract 7.1% in 2009.Mexico began to explore outsourcing of some of its oil-related activities, such asjoint-ventures with Petrobras. The positive effects of these efforts will only be felt after2013, but should increase investment flows to upgrade the Pemex infrastructure forgreater exploration.2010 Global Market Report ■ www.naiglobal.com14

The exchange rate has hovered at 13.5 pesos to the US dollar throughout 2009. Interestrates remain stable after having dropped in mid-2008 to their lowest levels (7.3%). Thedemand for maquiladora product dropped significantly, but by year-end 2009, interesthas surged due to increasing labor and transport costs from Asian operations.While real estate activity declined significantly, Mexico City fared better than most markets.The office and the industrial sectors generally experienced positive absorption, thoughabout 20% lower than the previous year. Demand is expected to increase slightly during2010. Lease rates in Mexico City are relatively stable, but softened by about 15% in thesecondary and tertiary submarkets. Sale prices across the country are also stable withcap rates about 9.5% for quality product, and IRRs in the 15-20% range.Venezuela2009 was a difficult year for Venezuela as the global recession, plunging oil pricesand poor economic micro-management policies plagued the country. The next fewyears will be particularly difficult with shortages expected in many sectors includingpower and water. Except for activity from political bedfellows such as Iran, China,Libya and Russia, there is virtually no new foreign investment in Venezuela outside ofthe petroleum industry. That said, the petroleum industry remains a powerful andprofitable economic engine.The country’s administration and policy environment hampers recovery. Vacancy ratesare still near zero in office, industrial and retail properties and rental rates are rising dueto high inflation rates. Investors and developers remain very cautious due to the lackof transparency and political risks.Asia PacificThe general feeling across most of Asia is that the worst of the recession is over.Most Asian countries have experienced a major rebound of stock markets, as wellas some improvement of real estate values, especially on the residential side. Themain indices in Hong Kong, mainland China, South Korea and Singapore have risenmore than 50% since January 1, 2009. The Indian Sensex has climbed 72% andstands 20% above where it was just before Lehman’s demise. However, thereremains an underlying cautiousness.Countries like Singapore, Hong Kong and South Korea that have seen quickturnarounds in their residential property market values since the beginning of 2009 alsosee their governments testing new regulations to manage another bubble. Hong Konghas seen more than a 25% rise in its mid-priced residential sector, and a 40% rise in theluxury sector since the beginning of the year. Recently, a Hong Kong apartmentwas sold for a record price of HK$71,280 per square foot (US$9,197 per square foot),setting a world record price per square foot. In response, the Hong Kong governmenthas cut mortgage limits and freed up more government land for residential development.Nonetheless, wealthy mainland Chinese buyers continue buying luxury residentialproperties all cash, and often on all-expense-paid property viewing tours by Hong Kongdevelopers.2010 Global Market Report ■ www.naiglobal.com15

ChinaChina continued to post large GDP growth. Projections for GDP growth in 2009 and2010 are 8.5% and 9%, respectively, while consumer price increases in 2009 and2010 are just -0.1% and 0.6%, respectively. China’s RMB4,000 billion (US$586 billion)fiscal stimulus package announced in late 2008 continued to work its way into theeconomy. By the third quarter of 2009, China began to see a sharp rise in foreigndirect investment in its manufacturing sector.In Beijing, the overall retail vacancy rate is over 30% due to Olympic construction. Incontrast, Shanghai’s prime retail vacancy rate is closer to 3.3%, but this could increasewith significant retail development for the 2010 World Expo under way.Investment in the industrial sector is expected to rise as investors see opportunity in thecurrent pricing while owner-occupiers seek cheap buys. US-based Blackstone GroupL.P. has set up a fund manager in Shanghai to focus on local opportunities. Disneylandwill establish a “Magic Kingdom-style theme park with characteristics tailored to theShanghai region.”Chinese will replace foreign investors as the main buyers of commercial real estate inthe country over the next few years. The domestic share of total property investmentgrew to 70% in the first half of 2009, up from 36% in 2008.Hong KongWith Hong Kong’s strong dependence on finance and global trade, it felt the full bruntof the global recession. Projections for GDP growth in 2009 and 2010 are -3.6% and3.5%, respectively. Estimates for consumer price increases in 2009 and 2010 are -1%and 0.5%, respectively.For much of 2009, absorption of office space was negative. Meanwhile, occupiers upgradedfrom industrial or Grade B buildings to newer, attractively priced office buildings inKowloon. China's super-rich are still purchasing homes and sweeping luxury branditems off the shelf. Although total retail sales have dropped 4% this year, luxury brandsare doing brisk business thanks to mainland shoppers. Industrial tenants continued tocut costs by downsizing and relocating to more affordable premises, which has fueleda high vacancy.IndiaIndia continued to post large GDP growth through the recession. Projections for GDPgrowth in 2009 and 2010 are 5.4% and 6.4%, respectively. Estimates for consumerprice increases in 2009 and 2010 are 8.7% and 8.4%, respectively.The office property market is experiencing an increase in confidence as banks andfinancial services companies buy, but the IT and Information Technology EnterpriseSolutions (ITeS) sectors have yet to enter the growth spree. Delhi and Mumbai havegrown the most in new properties available for rent. For example, vacancy levels roseto 30% in the Bandra-Kurla Complex and Kalina districts of Mumbai while vacancy2010 Global Market Report ■ www.naiglobal.com17

levels in Noida (near Delhi) were 40%. The new government and falling interest rates inthe second quarter of 2009 have improved local business sentiment in India. Butdespite improved confidence, office rentals slid in major cities as tenants moved tocheaper locations or upgraded at no cost. Commercial property markets will likelyremain soft in the short- to medium-term. Landlords in secondary office locations willstruggle with the consequences of overbuilding and will increase tenant incentives. Thecommercial market will follow the growth spurt of the residential sector, but slowly.On the industrial front, market players are positioning themselves for leadership inlogistics and manufacturing platforms. Higher-quality buildings and infrastructureare desperately needed but challenges remain in land acquisition and aggregatingland assemblage.IndonesiaWith a strong domestic economy and less dependence on foreign investment andcapital flows, Indonesia has weathered the storm well. Projections for GDP growth in2009 and 2010 are 4% and 4.8%, respectively. Estimates for consumer price increasesin 2009 and 2010 are 5% and 6.2%, respectively.Many multinational companies have put expansion plans on hold. Investment yields inIndonesia are 7-9%, but there very few transactions closed in the last 12 months. Theoffice rental rate in Jakarta remained stable, even as the office vacancy rate will increaseto 15% by year-end 2010.Rental prices fell due to weak economic growth. Supply is predicted to be high for thenext two years (around 290,000 SM during 2009-2010). As retailers consolidate stores,absorption will be negative.JapanHeavy investment in residential and commercial property markets in the last few years hasled to extraordinary buying opportunities due to the current lack of liquidity. Projections forGDP growth in 2009 and 2010 are -5.4% and 1.7%, respectively. Estimates for consumerprice increases in 2009 and 2010 are -1.1% and -0.8%, respectively.The property sector has been badly bruised, with developers and managers accountingfor eight of the 10 biggest bankruptcies of listed Japanese companies this year. Manylarge investment funds are proposing to start buying Japanese property in the first halfof 2010 when prices are expected to bottom. However, to date there has not been asmuch distress in the market as most expected. One reason is that the leniency ofJapanese banks allows borrowers to refinance rather than forcing liquidation.Commercial land prices in Japan fell 4.7% to a three-year low in 2008, with the declineincreasing to 5.4% in Tokyo, Osaka and Nagoya. Office vacancies in Tokyo's mainbusiness districts increased for the 17th month in a row in June 2009 to 7.25%.Financially strong office tenants have been upgrading their locations to better buildingswithout increasing rents.2010 Global Market Report ■ www.naiglobal.com18

MalaysiaWith Malaysia’s dependence on exports and FDI, the impact of the global recessionhas been severe. Projections for GDP growth in 2009 and 2010 are -3.6% and 2.5%,respectively. Estimates for consumer price increases in 2009 and 2010 are -2.2% and2.2%, respectively.Tourism is one of the country's biggest revenue sources, accounting for 12-13% ofgross domestic product. State investment agency Khazanah Nasional plans to investover RM1 billion in the leisure industry over the next two to three years in leisureprojects. Over the next few years, Malaysia will have some RM2.5 billion worth of newtourism attractions (including Nujasaya, Legoland and Kidzania) which are expected toattract nearly 2 million visitors combined annually.New ZealandThe global recession has greatly impacted New Zealand and its commercial propertymarkets. Projections for GDP growth in 2009 and 2010 are -2.2% and 2.2%, respectively.Estimates for consumer price increases in 2009 and 2010 are 1.5% and 1%,respectively.Commercial landlords continue to struggle with declining values, lower rents andincreasing incentive packages. Office and industrial vacancies continue to climb.While the residential market in New Zealand has come back with significant strength,the global markets to need to correct further before similar results in the commercialsector occur.SingaporeThe global recession has been felt strongly in Singapore, as it is highly trade-dependent.Projections for GDP growth in 2009 and 2010 are -3.3% and 4.1%, respectively.Estimates for consumer price increases in 2009 and 2010 are -0.2% and 1.6%,respectively.Defying all expectations, Singapore's residential property market has rebounded in thethick of the nation’s worst recession. New home sales between January and August of2009 were already 80% of the total homes sold for the whole of 2007. But goingforward, prices of mass market and mid-tier projects will face resistance. The governmenthas announced anti-speculation measures to moderate sales volume and prices:immediate removal of the interest absorption scheme (IAS) and the interest-onlyhousing loans (IOL) scheme for projects yet to be launched.In the office market, Singapore recorded positive take-up in the third quarter of 2009after three quarters of negative take-up. The island-wide vacancy rate for Class A officespace increased from 10.8% in the second quarter of 2009 to 12.2% in the thirdquarter, a trend that is expected to continue as supply comes online.The emphasis for retailers has shifted from store openings to streamlining operations,prompting a 14.4% fall in rents over the year through June 2009. Rents in the OrchardRoad area will remain under pressure due to the large volume of new supply in the next12-18 months.2010 Global Market Report ■ www.naiglobal.com19

Investment sales have jumped tenfold from S$304 million in the first quarter of 2009to S$3.1 billion in the third quarter. Nearly half of the transactions are for the residentialsector while the commercial real estate sector makes up the remainder.South KoreaWith South Korea’s strong dependence on exports and weakened currency, the globalrecession has been felt strongly. Projections for GDP growth in 2009 and 2010 are -1%and 3.6%, respectively. Estimates for consumer price increases in 2009 and 2010 are2.6% and 2.5%, respectively.Investor demand in commercial property revived in the second quarter of 2009, withcapitalization rates at 5.5-6%. Class A office rents remained stable, while all othersexperienced pressure on rents and occupancy. However, as new buildings are deliveredin the Seoul CBD in the fourth quarter of 2009 and through 2010, landlords expect toface further pressure. The industrial market is also seeing vacancy rates of 15-20%, withrents down 20% from the previous year. Retail sector rents were also decreased fromthe previous year.TaiwanWith Taiwan’s strong dependence on exports, the global recession has been felt.Projections for GDP growth in 2009 and 2010 are -3.3% and 4.1%, respectively. Estimatesfor consumer price increases in 2009 and 2010 are -0.2% and 1.6%, respectively.Taiwan’s economy is extremely dependent on export goods factories, many of whichare cutting back in the wake of the global recession. Industrial vacancy rates rangedfrom 13-20%.The Taipei office market is strengthening because of closer economic ties with China(particularly, the Cross-Straits Summit) enabling investment flows. Taiwan recorded itshighest overseas capital inflow ever in the third quarter of 2009 at nearly $13 billion.Office vacancy rates are slowly improving. Retail sector vacancy rates ranged from1-6%, although rents were slashed 40% or more across the board.2010 Global Market Report ■ www.naiglobal.com20

■ US Highlights – Northeast Region■ ConnecticutDelawareMaineMarylandMassachusettsNew HampshireOfficeNew JerseyNew YorkPennsylvaniaVermontWashington, DCThe downtown Baltimore office market continues to gravitate to the water as Inner Harbor Eastcontinues to build out. The new 600,000 SF headquarters for Legg Mason opened in 2009 as thelargest office presence to date in that area. What will happen to the former Legg headquartersat 100 Light Street remains a question.With vacancy rates climbing to 9.5% in the Boston CBD and 16.5% in the suburbs, there is noshortage of supply, allowing tenants with solid financials to take advantage of tenant-favorableconditions.The Q3 vacancy rate of 11.9 is the highest New York City has seen in four years, but was uponly slightly from the previous quarter. Average asking rates are now $52.05/SF, down fromalmost $70/SF in late 2008. However, the rate of decline, as well as the supply of subleasespace weighing on the market, has stabilized. On the investment side, Manhattan sales havebeen few; however distressed assets are starting to appear in greater number and it is expectedthat foreign investors and well capitalized investment groups will seek to take advantage of anew pricing structure, spurring the expected turnaround.The amount of vacant office space in the Washington market has trended up over thepast four quarters. With over 2 million SF still scheduled to deliver in 2009, and an additional3.8 million scheduled for 2010, an easy prediction is an increase in the Washington, DC, officevacancy rate through 2010. However, a potential tightening of supply may occur within the CBDduring the first half of 2010.IndustrialWith asking rates hovering just shy of $5 NNN, Baltimore developers have sharpened theirpencils after sitting on recently delivered product in a market that was flooded with newconstruction for most of 2008.Asking rates for Boston industrial space have dropped to an average of $6/SF NNN and vacancyrates hit their highest level since Q1 2005. The lack of liquidity continued to plague the investmentmarket in 2009. A majority of investment sales have been limited to smaller deals that canbe locally financed.The vacancy factor in Northern New Jersey’s industrial sector is approaching a 10-year high.However, there have been transactions, especially in the second half of the year. Asking rateshave decreased approximately 20% and deals are being made off of those numbers. Landlordsare making shorter term deals more frequently than in the past, and tenants have also beenreluctant to make long term commitments.The vacancy rate in Philadelphia increased almost 4% to total 13% in 2009. Large land parcelsare scarce throughout the Delaware Valley, but Philadelphia features large tracts in thePhiladelphia Navy Yard and smaller parcels located in controlled industrial parks.RetailBoston’s retail market has also felt the impact of the economic turmoil with lower rental ratesand significantly higher vacancy in the downtown.The Northern New Jersey retail sector has experienced the most difficult market in the past 20years. Vacancies in major corridors that would normally be leased right away are remainingvacant for extended periods of time. The sector is suffering from a lack of activity as opposed tothe other sectors where there are deals to be made at a price.The Philadelphia County retail vacancy rate increased slightly to 11.9% in 2009. Strong conventionand tourism business continues to stimulate the economy. New restaurants continue toopen and the $550 million dollar Sugar House Casino is under construction along the DelawareRiver. There is still strong redevelopment activity of existing retail shops and retail centers withinthe county.Leading Price Class A MarketsDowntown OfficeClass ASuburban OfficeClass ALeading Price Retail MarketsDowntown Retail OfficeClass Downtown ASuburban Retail OfficeService Class Centers ARetail RetailPower Power CentersRetail RetailRegional Regional Malls MallsIndustrial IndustrialBulk Bulk WarehouseIndustrial IndustrialManufacturingMarket Effective Avg. High Rent VacancyNew York City-Midtown $60.00 $110.00 14.7%Washington, DC $51.00 $70.00 14.0%New York City-Downtown $48.00 $75.00 10.5%Boston, Massachusetts $42.50 $52.00 9.5%Wilmington, Delaware $26.00 $28.00 20.0%Market Effective Avg. High Rent VacancyLong Island, New York $31.00 $34.00 11.0%Boston, Massachusetts $30.00 $35.00 16.5%Suburban, Maryland $28.45 $45.75 15.0%Northern New Jersey $28.00 $50.50 20.0%Ocean/Monmouth Counties, New Jersey $27.50 $32.00 11.0%Market Effective Avg. High Rent VacancyNew York City-Midtown $200.00 $1,200.00 7.6%Boston, Massachusetts $70.00 $120.00 15.0%Washington, DC $55.00 $80.00 2.5%Pittsburgh, Pennsylvania $26.37 $36.00 7.6%Philadelphia, Pennsylvania $26.00 $100.00 11.0%Market Effective Avg. High Rent VacancyWashington, DC $30.00 $45.00 3.0%Suburban Maryland (DC Metro) $25.22 $55.00 7.9%Pittsburgh, Pennsylvania $25.00 $30.00 7.7%Long Island, New York $24.00 $30.00 10.8%Baltimore, Maryland $23.00 $50.00 10.8%Market Effective Avg. High Rent VacancyLong Island, New York $30.00 $40.00 20.0%Southern New Jersey $28.00 $38.00 5.0%Philadelphia, Pennsylvania $27.00 $38.00 18.0%Western Massachusetts(Greater Springfield) $25.00 $30.00 10.0%Suburban Maryland (DC Metro) $24.12 $44.00 2.4%Market Effective Avg. High Rent VacancyLong Island, New York $90.00 $120.00 12.0%Washington, DC $62.00 $90.00 12.0%Wilmington, Delaware $60.00 $75.00 5.0%Middlesex/Somerset Counties, NJ $50.00 $60.00 7.0%Northern New Jersey $50.00 $60.00 3.8%Leading Price Industrial MarketsMarket Effective Avg. High Rent VacancyWashington, DC $9.50 $16.00 16.0%Northern New Jersey $6.10 $9.50 12.0%Suburban Maryland (DC Metro) $5.95 $14.00 12.5%Boston, Massachusetts $5.75 $7.00 11.0%Long Island, New York $5.75 $7.00 9.0%Market Effective Avg. High Rent VacancyPittsburgh, Pennsylvania $7.50 $13.00 10.0%Suburban Maryland (DC Metro) $6.42 $11.25 8.7%Boston, Massachusetts $6.00 $8.00 13.5%Northern New Jersey $5.75 $6.50 11.0%Albany, New York $5.55 $7.50 12.0%Industrial IndustrialHigh Tech/R&D FlexMarket Effective Avg. High Rent VacancyLong Island, New York $16.00 $18.00 8.5%Washington, DC $16.00 $18.00 23.0%Wilmington, Delaware $14.00 $20.00 18.0%Pittsburgh, Pennsylvania $13.00 $16.00 10.0%Suburban Maryland (DC Metro) $11.42 $16.00 7.8%2010 Global Market Report ■ www.naiglobal.com21

■ US Highlights – Southeast Region■ AlabamaFloridaGeorgiaKentuckyMississippiOfficeNorth CarolinaSouth CarolinaTennesseeVirginiaThe Atlanta office market’s supply has outweighed the demand, pushing the vacancy rate up inthe 19-22% range, creating negative net absorption and declining rental rates. With over 196million SF of inventory, it is anticipated that the office market will experience more negative netabsorption and remain flat for 2010.Miami office vacancy rose while rents dropped by more than 10%. Certain submarkets, mostnotably the CBD & Brickell, are hardest hit as approximately 2 million SF are scheduled to bedelivered in 2010 and 2011.Net absorption in Orlando was negative in four of the last five quarters from Q2 2008-Q3 2009.Vacancies are highest in Class A properties where average rents have declined by 6% over thepast year. Vacant sublease space has increased in all submarkets.Many companies have been inclined to shed jobs or consolidate their office requirements inorder to cut expenses, leading to a decrease in Northern Virginia’s overall demand for officespace. At the close of 2009, 13 buildings were under construction in Northern Virginia for a totalof 3.67 million SF, of which 67% was pre-leased.Concerns about the national economy were reflected in the Raleigh-Durham office market,which pointed to a rise in vacancy as tenants downsized and new sublease space broughtadditional pressures. Vacancy hovered close to 19% with negative net demand.IndustrialAbsorption slowed in Atlanta’s 560 million SF industrial market. The amount of new constructionhas dropped considerably and although vacancy rates have climbed over the past severalquarters and rental rates decreased slightly, leasing activity remains active.With over 1.6 million SF coming off the market in two large deals, the amount of large warehousespace available in Memphis has decreased. Several national companies looking for largeblocks of space could edge lease rates upward next year.Miami’s industrial sector suffered from the recession as transshipping slowed, smaller tenantsfailed and bankruptcies in the automotive and construction industries intensified problems.Vacancies increased on a weekly basis throughout the year.Orlando’s overall industrial vacancy rate stands at 13.2%, up from 8.3% a year ago. Average leaserates have dropped by more than 10.5% over the past year in response to four consecutivequarters of negative absorption. Vacancy rates are highest for flex product at 17.6%. Newconstruction is non-existent.RetailAtlanta’s retail market, with over 298 million SF of inventory, reported a slight deterioration inmarket conditions. Vacancy rates are hovering in the 10-14% range with negative net absorptionand rental rates are down from the last several quarters.Boca Raton and Delray have weathered the storm best because of the density of populationand strong demographics. Discount tenants of all types have benefited from the decreasedrental rates and increased vacancy and have used that as an opportunity to expand. PalmBeach County has seen retail rents retreat 20-30% from the 2006-2007 peak.Increasing unemployment and a decline in tourism have impacted Orlando’s retail sector. Askingand effective rents have dropped, while concessions now amount to more than 10% of askingrents. The retail vacancy rate is 8.3% market-wide, up from 5.7% one year ago. New deliverieshave been dominated by single-tenant super centers.Over 2 million SF of retail space was completed in the Raleigh-Durham market with an additional900,000 SF under construction. Despite a rise in vacancy to 7%, overall net absorption waspositive, and rental rates declined. As construction continues on the Outer Loop (I-540) aroundRaleigh, new retail opportunities will be opened at major interchanges.Leading Price Class A MarketsDowntown OfficeClass ASuburban OfficeClass ALeading Price Retail MarketsRetailDowntownRetailService CentersRetailPower CentersRetailRegional MallsMarket Effective Avg. High Rent VacancyMiami, Florida $38.23 $43.73 14.5%Fort Lauderdale, Florida $30.00 $32.00 17.0%Palm Beach County, Florida $30.00 $37.50 22.7%Tampa Bay, Florida $28.00 $32.00 15.0%Charlotte, North Carolina $27.25 $32.00 7.5%Market Effective Avg. High Rent VacancyMiami, Florida $33.25 $38.03 22.3%Northern Virginia $31.00 $50.00 20.0%Palm Beach County, Florida $30.90 $40.00 19.0%Tampa Bay, Florida $28.00 $32.00 15.0%Atlanta, Georgia $23.00 $25.34 12.2%Market Effective Avg. High Rent VacancyMiami, Florida $31.86 $43.92 4.7%Charlotte, North Carolina $28.93 $34.00 10.5%Orlando, Florida $28.00 $35.00 10.4%Palm Beach County, Florida $25.63 $50.00 20.0%Atlanta, Georgia $25.00 $40.00 8.0%Market Effective Avg. High Rent VacancyNorthern Virginia $35.00 $50.00 10.8%Palm Beach County, Florida $26.50 $40.00 18.5%Miami, Florida $24.48 $45.17 7.0%Nashville, Tennessee $20.88 $33.00 7.2%Mobile/Baldwin Counties, Alabama $18.75 $27.50 10.0%Market Effective Avg. High Rent VacancyFort Lauderdale, Florida $30.00 $40.00 8.0%Palm Beach County, Florida $24.63 $35.00 17.5%Chattanooga, Tennessee $24.00 $30.00 10.0%Columbia, South Carolina $23.00 $30.00 9.1%Miami, Florida $21.37 $45.00 6.8%Market Effective Avg. High Rent VacancyFort Lauderdale, Florida $30.00 $40.00 8.0%Palm Beach County, Florida $24.63 $35.00 17.5%Chattanooga, Tennessee $24.00 $30.00 10.0%Columbia, South Carolina $23.00 $30.00 9.1%Miami, Florida $21.37 $45.00 6.8%Leading Price Industrial MarketsIndustrialBulk WarehouseIndustrialManufacturingMarket Effective Avg. High Rent VacancyNorthern Virginia $9.00 $18.00 12.0%Miami, Florida $7.41 $10.83 10.1%Fort Lauderdale, Florida $7.00 $8.00 8.0%Palm Beach County, Florida $6.70 $9.50 11.7%Orlando, Florida $5.65 $7.001 2.3%Market Effective Avg. High Rent VacancyPalm Beach County, Florida $6.70 $9.50 10.5%Fort Lauderdale, Florida $6.00 $7.00 9.0%Tampa Bay, Florida $5.50 $7.50 20.0%Orlando, Florida $4.70 $8.00 12.5%Jacksonville, Florida $4.28 $6.22 12.8%IndustrialHigh Tech/R&DMarket Effective Avg. High Rent VacancyOrlando, Florida $26.50 $30.00 6.2%Mobile/Baldwin Counties, Alabama $17.50 $20.00 15.0%Miami, Florida $13.11 $19.33 9.3%Northern Virginia $12.00 $23.00 18.0%Lexington, Kentucky $11.50 $15.00 9.4%2010 Global Market Report ■ www.naiglobal.com22

■ US Highlights – Midwest Region■OfficeIllinoisIndianaIowaMichiganMinnesotaMissouriNebraskaNorth DakotaOhioSouth DakotaWisconsinChicago’s downtown office market experienced four consecutive quarters of negative netabsorption and rising vacancies during 2009. Class A and Class B buildings are suffering fromthe highest vacancies, each above 16%. Suburban vacancy rates have been rising steadily since2008, eclipsing 22% in 2009. Leasing activity is expected to pick up during 2010 as askingrents continue to slide and landlords offer aggressive concession packages. This should resultin stabilizing vacancy rates.Downtown Cleveland is positioned to capture momentum from several large public-sectorprojects either planned or under way. The suburban office market was a more difficultenvironment, hampered by widespread financial hardship among tenants.The Detroit office market has developed a churning trend with many users taking advantageof small spreads in rates between classes. Though rate gaps have narrowed, landlords arehesitant to offer tenant improvement incentives as financing and cash remain scarce. Newdemand is evident in the form of renewable energy and film production, yet these industries donot have the critical mass to benefit the entire market.Rental rates in the Milwaukee office market are down 20-25% and absorption is heavilynegative with vacancy climbing to 18.5%. Tenants with lease expirations two to three years outcan realize dramatic savings by renegotiating their leases through blend and extend transactions.Office vacancy market-wide is 12% in Minneapolis with the highest vacancy in Class B space.Tenants are renewing existing leases rather than absorb relocation costs. Landlords areoffering discounted rates to tenants renewing 12-18 months in advance to ensure spacesremain filled.IndustrialThe second largest industrial market and the most important transportation hub in the country,Chicago’s industrial market also was challenged during 2009 due to lack of consumer spending,difficulty obtaining credit and economic uncertainty. Lack of new deliveries, combined withan increase in transactional activity, will help the market eventually rebound.Detroit’s industrial vacancy continues to rise above 20%, primarily due to the hard hit automotiveindustry. While there is minimal traditional industrial demand, renewable energy firms arebeginning to look at flex space as an attractive option for solar and wind technologies.Investors remain interested in the Indianapolis industrial market as modern bulk facilities arestill being delivered throughout the market. New construction is trending toward smallerwarehouse/distribution facilities.Rental rates and vacancy rates in Milwaukee have remained relatively stable with landlordsrequiring at or near asking rates while giving concessions on tenant improvements or rentabatement. Larger transactions are stewing, but may not occur until Q1 2010. Wisconsin lostlarge employers like General Motors and other large employers, like Harley Davidson, have drasticallyreduced their workforce.The St. Louis industrial market continues to suffer from an excess of speculative spaceresulting in elevated vacancy rates and decreased rental rates. Vacancy rates increased to 9%in 2009, up almost a full point from the end of 2008. Average rental rates dipped slightlyto $4.21/SF.RetailPower centers in Detroit have begun to feel the effects of falling consumer spendingand increasing unemployment with many anchor and smaller tenants vacating. Significantinvestments by Meijer and LA Fitness helped mitigate the impact of the closing of Circuit Citylocations throughout the Metro Area.New retailers in Milwaukee included Erewhon, Dave & Buster’s and Gold’s Gym. Local andregional grocers such as Pick ‘n Save, Sendiks and Woodman’s will continue to expand in 2010.Expect vacancies to increase and effective market rents to drop until the market levels out.Nordstrom Rack and Von Maur have announced plans to enter the St. Louis retail market, butthe timing remains uncertain. They’ll be joined by CVS Pharmacy, Dunkin Donuts, Five GuysBurgers & Fries and Chick-fil-A, which are expected to open multiple locations in the next year.Leading Price Class A MarketsDowntown OfficeClass ASuburban OfficeClass ALeading Price Retail MarketsRetailDowntownRetailService CentersRetailPower CentersRetailRegional MallsMarket Effective Avg. High Rent VacancyChicago, Illinois $42.00 $55.00 16.1%Detroit, Michigan $23.09 $30.00 9.8%Grand Rapids, Michigan $19.00 $24.00 20.0%St. Louis, Missouri $18.80 $22.00 13.0%Kansas City, Missouri $18.64 $23.50 24.0%Market Effective Avg. High Rent VacancySt. Louis, Missouri $25.00 $30.00 11.6%Chicago, Illinois $23.15 $30.00 23.4%Detroit, Michigan $22.50 $45.00 17.1%Kansas City, Missouri $20.81 $28.50 19.1%Minneapolis/St. Paul, Minnesota $20.70 $31.00 9.8%Market Effective Avg. High Rent VacancyChicago, Illinois $30.00 $220.00 8.2%Madison, Wisconsin $20.00 $40.00 7.6%Milwaukee, Wisconsin $20.00 $30.00 11.0%Kansas City, Missouri $17.88 $26.00 7.8%Minneapolis/St. Paul, Minnesota $16.83 $25.00 5.0%Market Effective Avg. High Rent VacancySt. Louis, Missouri $16.24 $25.00 13.0%Indianapolis, Indiana $16.00 $17.50 14.0%Davenport/Bettendorf, Iowa $15.00 $28.00 7.0%Milwaukee, Wisconsin $15.00 $22.00 15.0%Lincoln, Nebraska $14.75 $22.00 9.3%Market Effective Avg. High Rent VacancyIndianapolis, Indiana $22.00 $26.00 10.2%St. Louis, Missouri $20.12 $28.00 4.9%Kansas City, Missouri $17.01 $28.25 7.6%Milwaukee, Wisconsin $17.00 $25.00 10.0%Grand Rapids, Michigan $16.00 $23.00 4.0%Market Effective Avg. High Rent VacancyChicago, Illinois $50.00 $80.00 7.8%St. Louis, Missouri $48.79 $60.00 7.2%Northeastern, Wisconsin (Fox Valley/Green Bay) $35.00 $55.00 10.0%Sioux City, Iowa $35.00 $45.00 7.5%Lincoln, Nebraska $32.00 $85.00 17.5%Leading Price Industrial MarketsIndustrialBulk WarehouseIndustrialManufacturingIndustrialHigh Tech/R&DMarket Effective Avg. High Rent VacancyMinneapolis/St. Paul, Minnesota $5.91 $14.75 10.2%Fargo, North Dakota $5.50 $6.00 9.9%Omaha, Nebraska $5.02 $6.67 5.7%Milwaukee, Wisconsin $4.60 $5.00 13.0%Cedar Rapids, Iowa $4.50 $6.50 7.8%Market Effective Avg. High Rent VacancyCedar Rapids, Iowa $6.50 $10.00 5.0%Detroit, Michigan $6.50 $8.00 24.0%Fargo, North Dakota $6.50 $6.90 9.9%Minneapolis/St. Paul, Minnesota $5.76 $11.00 7.9%Des Moines, Iowa $4.60 $6.25 6.9%Market Effective Avg. High Rent VacancyIndianapolis, Indiana $16.50 $17.50 13.4%Canton, Ohio $12.00 $14.00 6.0%St. Louis, Missouri $10.29 $12.00 14.8%Dayton, Ohio $10.07 $13.33 25.1%Cedar Rapids, Iowa $9.00 $15.00 10.0%2010 Global Market Report ■ www.naiglobal.com23

■ US Highlights – Southwest Region■ ArkansasKansasLouisianaOfficeOklahomaTexasThe Austin market failed to absorb 600,000 SF in the first half of 2009. Luckily almost 300,000SF of mostly Class A space was absorbed in Q3. Landlords are working hard to keep existingtenants and make attractive deals through rent concessions.The Dallas/Ft. Worth market leads the nation in employment gains for 2009 and the positivenumbers are reflected in what appears to be a healthy office market. Overall vacancy inDallas remains flat from a year ago at 17.2%. Market rents have dramatically increased toan averaging of $20.05 for all classes of office space. Many companies are choosing to doshort-term renewals versus making long term decisions.Houston’s office vacancy rate across all classes was 14.2% in mid-2009 but a low 8.1% in theCBD. A total of 15 buildings totaling 1.1 million SF delivered in 2009 with 3.8 million SF stillunder construction. The CBD saw its share of large lease transactions, with three deals aloneaccounting for over 1.4 million SF.The New Orleans office market has remained relatively stable in terms of occupancy and rentalrates in the CBD and suburbs. No speculative inventory has been added in either market, andthe adaptive re-use of older Class B and C buildings has actually reduced available supply.The Oklahoma City office market remains strong with overall vacancy at 10%, up from 8.9% ayear ago. Rents are very stable with Class A at $22/SF. No new construction is planned exceptfor Devon Energy’s 750,000 SF corporate headquarters in the CBD, to be completed in 2012.IndustrialAustin added 3.4 million SF of industrial space from year-end 2007 through mid-2009, anincrease of 10% of gross inventory over an 18-month period. There is no institutional gradeproduct currently under construction and rents continue to erode.The vacancy rate in the Dallas industrial market stands at about 12%. There is heavy competitionfor every tenant, pushing rental rates down while also increasing move-in incentives.Absorption rates are in the negative territory for the first time in a while.Houston’s industrial market has remained stable with an overall vacancy rate of 6.9% andaverage asking rental rates of $5.70/SF per year.The industrial sector is booming in Jonesboro, Arkansas, with the announcement of NordexUSA’s plan to construct a $100 million wind-energy plant in the Jonesboro Industrial Park andAlberto Culver expanding to allow for even more jobs and production outside of Jonesboro.More than 1.5 million SF of industrial space absorbed by contractors, utility crews and reliefworkers in New Orleans in the months following Hurricane Katrina has been returned to themarket. That, combined with new inventory, produced a vacancy rate of more than 13%. Thefirst softening in rental rates and pricing is evident.RetailAbout 618,940 SF of retail was delivered in Austin in 2009 while only 278,130 SF wasabsorbed. This resulted in average rental rates decreasing by $2.81/SF from December of 2008to June of 2009.The Dallas/Ft. Worth retail market has a 9.4% vacancy rate and a retail rental rate of$13.37/SF. Net absorption has been in excess of 1 million SF and the average rental rate hasincreased 0.8%. Some 21 buildings were delivered totaling just over 300,000 SF. Cap rateshave averaged 7.90%.Houston’s retail market has experienced a decrease in vacancy to 9.2% overall, but theaverage quoted asking rental rate still dropped to $15.15/SF, a 1.9% decrease over thepast year. Average sales prices rose year over year to $171/SF, compared with $147 in theprevious period.Leading Price Class A MarketsDowntown OfficeClass ASuburban OfficeClass ALeading Price Retail MarketsRetailDowntownRetailService CentersRetailPower CentersRetailRegional MallsMarket Effective Avg. High Rent VacancyAustin, Texas $35.96 $26.30 15.1%Houston, Texas $34.66 $45.00 7.0%Fort Worth, Texas $26.00 $29.00 6.0%San Antonio, Texas $21.05 $24.00 12.8%Baton Rouge, Louisiana $20.75 $21.50 9.7%Market Effective Avg. High Rent VacancyHouston, Texas $27.47 $40.55 16.0%Austin, Texas $26.29 $19.50 21.4%San Antonio, Texas $24.49 $28.00 14.1%Dallas, Texas $24.30 $45.00 16.0%New Orleans, Louisiana $21.50 $23.00 9.4%Market Effective Avg. High Rent VacancyHouston, Texas $37.71 $50.00 8.0%Austin, Texas $27.50 $41.00 4.0%New Orleans, Louisiana $27.50 $40.00 14.0%San Antonio, Texas $24.33 $34.00 17.3%Fort Worth, Texas $19.47 $38.00 2.0%Market Effective Avg. High Rent VacancyLittle Rock, Arkansas $27.75 $35.00 40.0%McAllen/Mission, Texas $23.00 $22.00 12.0%Austin, Texas $21.00 $32.00 16.0%Corpus Christi, Texas $19.00 $28.00 14.0%San Antonio, Texas $16.14 $31.00 17.1%Market Effective Avg. High Rent VacancyMcAllen/Mission, Texas $31.00 $32.00 15.0%Baton Rouge, Louisiana $28.00 $40.00 6.6%Beaumont, TX $18.50 $22.00 12.0%Dallas, Texas $17.47 $30.00 13.2%Wichita, Kansas $15.00 $22.00 6.0%Market Effective Avg. High Rent VacancyMcAllen/Mission, Texas $80.00 $100.00 4.0%San Antonio, Texas $42.50 $60.00 10.4%New Orleans, Louisiana $41.25 $62.50 5.0%Baton Rouge, Louisiana $35.00 $80.00 5.3%Austin, Texas $33.50 $45.00 5.0%Leading Price Industrial MarketsIndustrialBulk WarehouseIndustrialManufacturingMarket Effective Avg. High Rent VacancyMcAllen/Mission, Texas $7.20 $7.801 5.0%Houston, Texas $5.31 $7.14 7.0%Corpus Christi, Texas $4.80 $6.00 4.0%San Antonio, Texas $4.40 $6.00 12.8%Austin, Texas $4.20 $5.40 20.0%Market Effective Avg. High Rent VacancyMcAllen/Mission, Texas $9.75 $11.00 6.0%Beaumont, TX $6.30 $7.00 6.0%Oklahoma City, Oklahoma $5.75 $9.25 14.0%Austin, Texas $5.70 $7.20 20.0%Houston, Texas $5.17 $7.80 3.0%IndustrialHigh Tech/R&DMarket Effective Avg. High Rent VacancyTexarkana $14.50 $16.00 0.0%New Orleans, Louisiana $12.00 $15.00 10.0%Wichita, Kansas $10.00 $11.00 5.6%San Antonio, Texas $9.52 $16.75 17.2%Beaumont, TX $9.00 $10.00 5.0%2010 Global Market Report ■ www.naiglobal.com24

■ US Highlights – West Region■ ArizonaCaliforniaColoradoHawaiiIdahoMontanaOfficeNevadaNew MexicoOregonUtahWashingtonWyomingThe entertainment industry, a primary component of the Los Angeles market, has weatheredthe economic crisis well, but demand is off in most other sectors. Tenants are giving back excessspace and renegotiating leases to reduce their operating costs. Higher vacancy rates, lowerlease rates and tight credit have almost eliminated new construction.The office vacancy rate in Phoenix is 25% overall, but vacancy at Class A+ product downtownand in suburban submarkets has reached a staggering 60%. Relief won’t come anytime soonwith over 2 million SF currently under construction.Portland office vacancy increased considerably during 2009, but Class A space in the CBDremained tight at around 6%. No new CBD projects will deliver until summer 2010.Positive net absorption of almost 300,000 SF of office space in San Diego in Q3 provided somewelcome positive news in an otherwise very difficult year. Investment activity is well off the 2007peak in velocity and volume. Excluding buildings under 15,000 SF, sale prices in 2009 averaged$140/SF, down from $230/SF in 2008.The San Francisco commercial market remained plagued by rising vacancy, declining rents andoccupancy loss with the September 2009 preliminary unemployment rate reaching 10.4%. Themarket-wide vacancy rate rose to 15.3% at the end of Q3 with nearly 1.7 million SF of negativeabsorption year to date. Rental rates dropped $3.75 to $33.01/SF full service.San Mateo office vacancy peaked above 18% in 2009, climbing 680 basis points from 2008.The average asking rate decreased a dramatic $10.32 in the past year to $31.92/SF full serviceper year. Since 2007, nearly 5.7 million SF of office space has been absorbed from SanMateo County's available marketplace.IndustrialDenver’s vacancy rate is nearing 9%. The good news is there are several large transactionsin the market, which should fill some voids that have been created due to the downturn inthe economy.Las Vegas industrial inventory grew to 103 million SF, pushing the vacancy rate beyond 12%.Current vacancies are significantly higher than the 10-year historical average of 8%. Speculativedevelopment in the sector remains limited while net absorption remained negative throughoutthe year.Offsetting Los Angeles’ gains in entertainment are losses in international trade. Total shipmentsthrough September at the Port of Long Beach decreased 24.6 % from the previous year, andcontributed to rising vacancy and weakening rents in the L.A. County industrial sector.Demand for industrial space in Reno was down for the third consecutive year and the vacancyrate reached an all-time high above 15%. Even with virtually no speculative developmentduring 2009, occupancy receded by more than 3% (almost 2 million SF) and effective rentsdropped 15% to 25%, with a concomitant decrease in property values.RetailIn December 2009, MGM Mirage’s $8.5 billion CityCenter mixed-use development debuts with18.5 million SF of resort and residential development along the famous Las Vegas Strip. Theproperty is expected to act as a catalyst for increased visitation, which should have ripplingeffects throughout the local economy.While economic conditions in Los Angeles County remain weak, one bright spot is discountretailers such as Big Lots, Dollar Tree, 99 Cents Only and Wal-Mart, continue to expand.Retail landlords in Phoenix have been aggressive with rental rates and concessions for bothnew and existing tenants. In spite of those efforts, overall vacancy has risen from 10.3% at thebeginning of 2009 to the current level of 11%. New construction has exacerbated the problemwith 2.8 million SF added over the past year and another 1 million SF is due to delivered bymid-2010.Leading Price Class A MarketsDowntown OfficeClass ASuburban OfficeClass ALeading Price Retail MarketsRetailDowntownRetailService CentersRetailPower CentersRetailRegional MallsMarket Effective Avg. High Rent VacancySanta Clara County (Silicon Valley), California $43.44 $85.20 24.1%San Francisco County, California $36.42 $70.00 14.4%Los Angeles County, California $34.19 $52.54 13.7%Sacramento, California $34.08 $39.60 9.6%Jackson Hole, Wyoming $32.50 $35.00 10.0%San Diego, California $31.50 $36.00 18.0%Market Effective Avg. High Rent VacancySanta Clara County (Silicon Valley), California $35.60 $78.96 23.9%San Mateo County, California $35.04 $162.00 18.7%Los Angeles County, California $32.67 $77.40 14.8%Marin County, California $30.96 $60.00 27.9%Ventura County, California $30.00 $35.00 19.6%Market Effective Avg. High Rent VacancySan Francisco County, California $76.33 $750.00 6.7%Santa Clara County (Silicon Valley), California $48.00 $72.00 7.6%Seattle, Washington $42.00 $65.00 8.1%San Diego, California $33.33 $60.00 6.6%Los Angeles County, California $32.61 $45.24 4.6%Market Effective Avg. High Rent VacancySan Francisco County, California $45.06 $65.00 3.6%Santa Clara County (Silicon Valley), California $36.00 $48.00 10.8%San Mateo County, California $33.66 $54.00 3.8%Ventura County, California $25.70 $39.00 9.1%Los Angeles County, California $25.31 $41.68 6.8%Market Effective Avg. High Rent VacancySanta Clara County (Silicon Valley), California $43.50 $60.00 8.0%Marin County, California $39.09 $45.00 2.7%San Diego, California $28.07 $28.00 5.8%San Mateo County, California $27.49 $45.00 5.1%Seattle, Washington $27.00 $38.00 5.0%Market Effective Avg. High Rent VacancySanta Clara County (Silicon Valley), California $85.00 $125.00 12.0%San Francisco County, California $71.37 $150.00 1.5%Phoenix, Arizona $50.00 $80.00 10.0%Albuquerque, New Mexico $42.00 $50.00 22.8%Seattle, Washington $39.00 $90.00 4.8%Leading Price Industrial MarketsIndustrialBulk WarehouseIndustrialManufacturingMarket Effective Avg. High Rent VacancyVentura County, California $15.00 $10.80 5.9%Marin County, California $13.80 $15.60 10.0%San Mateo County, California $9.48 $18.00 13.5%San Francisco County, California $9.12 $16.20 5.1%San Diego, California $8.34 $12.00 9.4%Market Effective Avg. High Rent VacancyMarin County, California $13.80 $15.60 10.0%Ventura County, California $12.60 $7.80 6.3%Santa Cruz County, California $10.08 $16.20 5.4%San Diego, California $9.24 $18.00 10.9%San Mateo County, California $9.24 $18.00 11.0%IndustrialHigh Tech/R&DMarket Effective Avg. High Rent VacancySan Mateo County, California $27.96 $45.00 16.1%Marin County, California $20.10 $20.10 10.0%Santa Clara County (Silicon Valley), California $12.96 $46.80 19.1%Santa Cruz County, California $12.24 $18.60 14.7%Las Vegas, Nevada $12.00 $18.00 18.0%2010 Global Market Report ■ www.naiglobal.com25

Asia PacificSECTION CONTENTSMelbourne, AustraliaBeijing, ChinaChengdu, ChinaHong Kong, ChinaShanghai, ChinaXiamen, ChinaGuamChennai, IndiaDelhi, Gurgaon, IndiaHyderabad, Pradesh, IndiaKolkata, IndiaPune, IndiaPunjab, IndiaTokyo, JapanKuala Lumpur, MalaysiaSeoul, South KoreaTaipei, TaiwanSingapore

Melbourne, AustraliaBeijing, ChinaContactNAI Melbourne+61 3 9670 1255Country DataArea (KM 2 )GDP Growth (%)GDP 2009 (US$ B)GDP/Capita (US$)Inflation Rate (%)1334.30.73%$920.01$41,981.701.63%In mid-2009, investors are again showing interest inAustralia’s retail property sector. The market has beeneducated by recent transactions in respect to possible returns,and investors are now actively seeking retail assetsaround the country with the realization that conditions arebecoming increasingly favorable. As signs of improving globaland local economic conditions emerge, private investors andowner occupiers are leading activity levels within Melbourne’sindustrial market.Following a subdued first quarter, sales volumes increasedduring the last three months where more than 70% ofinvestment sales transactions occurred. Investor demandfor quality assets in prime locations with long term leases inplace is expected to continue during the second half of2009. Overall, rents for prime facilities softened by 13%across Melbourne as a result of decreased demand. In aneffort to secure tenants, landlords increased incentivelevels by an average of 3%, now averaging 16% for primebuildings and 18% for secondary properties. Rents andincentive levels are now expected to stabilize acrossMelbourne, with the exception of the South East region,where it is likely landlords will further increase incentivesand soften rents to secure tenants.The Australian economy has slowed significantly and 2009will be remembered as the year when the global economiccrisis had its full impact on the local economy. Currently,access to finance is still a barrier for manyinvestors. However, market conditions have shifted and therisk premiums for investments in commercial property haveincreased notably. Investors in the current market areassessing their property requirements and necessaryinvestment returns. Transactions above US $100 million willbe limited in the near future. However, the level ofactivity is expected to increase considerably in late 2009.It is expected that the retail investment sector will see themajority of transactions occur for neighborhood andsub-regional center types in the price bracket of US $10million - $60 million in the next 12 months.ContactNAI Imperial Real Estate+86 10 5870 0399Country Data*Area (KM 2 )GDP Growth (%)GDP 2009 (US$ B)GDP/Capita (US$)Inflation Rate (%)9,596,9607.7%$3189.12$2,390.11-1.1%Beijing’s economic growth declined slowly in 2009 due tothe global financial crisis. In Q2 2009, Beijing’s GDPincreased by 7.8% year-over-year. Until August 2009, totalfixed asset investment in Beijing increased by 44.3% yearover-year.Investment in real estate development increasedby 44.2% year-over-year. The consumer price index declinedby 1.5%.As the support industry of china’s economy, the real estateindustry is also confronted with severe challenges andthreats. Despite the government’s series of preferentialpolicies, such as lowering interest rates and cutting taxes,most consumers still adopted a wait-and-see attitude,which caused a drop in demand for properties and a declinein prices.The office market was affected by the global financial crisisand greatly increased new supplies. The overall vacancy ratein the Beijing office market maintained an upward tendencyin 2009 and rental rates showed a sharp decline, especiallyin the CBD. Even though rental rates dropped by 15%, theoverall vacancy rate is still trending upward.In addition, because of the economic decline, the retail andindustrial markets are still in a negative state. In the investmentsector, declining property prices and a generallyfavorable outlook for the Chinese market led to a significantvolume of transactions registered in 2009. But the maininvestors have changed from the original foreign buyers todomestic buyers.In the residential market, although sale prices decreased,sales volume did not increase substantially. However, sincethe government’s relaxation of policies in the resale housingmarket, the residential market has now become very active.Because of the relatively large new supply, rental rates andoverall vacancy rates are not expected to return to theprevious strong level. However, with high expectations andconfidence in Beijing from both home and abroad, thedemand for different types of properties should continueto increase.UnemploymentRate (%)6.0%UnemploymentRate (%)4.3%Interest Rate(%)3.5%Interest Rate(%)5.4%Population (Millions) 21.915Melbourne At A GlanceConversion: 1.30 AUD = 1 US$ RENT/M 2 /MO US$ RENT/SF/YEARLow High Low High VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power CenterRegional MallsSolus Food StoresDEVELOPMENT LANDOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidentialAUD 450.00 AUD 500.00 $ 39.07 $ 43.41 4.0%AUD 400.00 AUD 450.00 $ 34.73 $ 39.07 5.0%AUD 300.00 AUD 350.00 $ 26.05 $ 30.39 6.0%AUD 250.00 AUD 270.00 $ 21.71 $ 23.44 5.0%AUD 220.00 AUD 230.00 $ 19.10 $ 19.97 5.0%AUD 180.00 AUD 190.00 $ 15.63 $ 16.50 7.0%AUD 130.00 AUD 40.00 $ 11.29 $ 12.16 6.0%AUD 130.00 AUD 140.00 $ 11.29 $ 12.16 9.0%AUD 150.00 AUD 160.00 $ 13.02 $ 13.89 5.0%AUD 800.00 AUD 900.00 $ 69.46 $ 78.14 3.0%AUD 450.00 AUD 500.00 $ 39.07 $ 43.41 6.0%N/A N/A N/A N/A N/AAUD 1,700.00 AUD 2,000.00 $147.60 $173.65 2.0%N/A N/A N/A N/A N/ALow/M 2 High/M 2 Low/SF High/SFN/A N/A N/A N/AAUD 150.00 AUD 160.00 $ 140.19 $ 149.53AUD 110.00 AUD 120.00 $ 102.80 $ 112.15AUD 120.00 AUD 130.00 $ 112.15 $ 121.50AUD 850.00 AUD 900.00 $ 794.39 $ 841.12AUD 1,400.00 AUD 1,500.00 $1,308.41 $1,401.87Population (Millions) 1334.3*National Bureau of Statistics of Chinain 3Q2009Beijing At A GlanceConversion: 6.83 RMB = 1 US$ RENT/M 2 /MO US$ RENT/SF/YRLow High Low High VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)RMB 2,160.00 RMB 2,520.00RMB 1,740.00 RMB 4,320.00$ 29.38$ 23.67$$34.2858.7660.0%10.0%Class B (Secondary)SUBURBAN OFFICERMB 794.00 RMB 1,440.00 $ 10.80 $ 19.59 15.0%New Construction (AAA)Class A (Prime)RMB 2,400.00 RMB 3,300.00RMB 1,680.00 RMB 3,600.00$ 32.65$ 22.85$$44.8948.9740.0%10.0%Class B (Secondary)INDUSTRIALRMB 840.00 RMB 1,560.00 $ 11.43 $ 21.22 13.0%Bulk WarehouseManufacturingRMBRMB216.00 RMB216.00 RMB540.00468.00$$2.942.94$$7.356.37N/AN/AHigh Tech/R&DRETAILRMB 648.00 RMB 1,008.00 $ 8.81 $ 13.71 N/ADowntownRMB 3,000.00 RMB 14,880.00 $ 40.81 $ 202.40 13.0%Neighborhood Service CentersCommunity Power CenterRMBRMB420.00 RMB 1,620.00300.00 RMB 1,920.00$$5.714.08$$22.0426.1225.0%17.0%Regional MallsN/A N/A N/A N/A N/ASolus Food StoresRMB 1,080.00 RMB 7,560.00 $ 14.69 $ 102.83 9.0%DEVELOPMENT LAND Low/M 2 High/M 2 Low/Acre High/AcreOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidentialRMB 5,990.00 RMB 12,905.00 $ 81.48 $ 175.53RMB 3,745.00 RMB 9,975.00 $ 50.94 $ 135.68RMB 395.00 RMB 4,594.00 $ 5.37 $ 62.49RMB 8,840.00 RMB 14,840.00 $ 120.24 $ 201.85RMB 4,407.00 RMB 15,270.00 $ 59.94 $ 207.70RMB 1,079.00 RMB 14,920.00 $ 14.68 $ 202.942010 Global Market Report ■ www.naiglobal.com 27

Chengdu, ChinaHong Kong, ChinaContactNAI New Space RealEstate Co., Ltd.+86 28 6653 6999Country DataArea (KM 2 )GDP Growth (%)GDP 2009 (US$ B)GDP/Capita (US$)Inflation Rate (%)UnemploymentRate (%)Interest Rate(%)1334.38.5%$4,757.74$3,565.73-0.06%4.3%5.31%Population (Millions) 1334.3The capital city of the Sichuan province and a key commercialcenter in western China, Chengdu maintained the trend ofrapid growth in 2009 despite the current economicsituation. According to statistics published by the ChengduStatistical Bureau, by the end of Q3 2009, the city’s GDPamounted to RMB 316.46 billion, up 14.2% compared withthe same period in 2008.Invetsment in fixed assets totaledRMB 290.58 billion, up 40% compared with the sameperiod in 2008. Meanwhile, the consumer price indexincreased 0.1% in Q3, up 0.3% over the previous quarter.During the last three quarters, total investment in fixedassets in Chengdu reached RMB 29.058 billion, up 40%.Investment in commercial and residential development andreal estate sales is strong and continuing to increase.According to statistics, during the first nine months of 2009,overall investment in Chengdu totaled RMB 15.705 billion,an increase of 73.6%, outpacing the increase of investmentin fixed assets by 33.6%. Sales of commercial real estatein the city reached 1.8 million SM, up 73.6%; and sales ofresidential real estate reach 1.7 million SM, up 40% comparedwith the same period in 2008.The Chengdu market has a total inventory of approximately460,000 SM of Class A space and 891,000 SM of Class Bspace. Office vacancy rates continue to decline and currentlystand at 23.1%. However, leasing activity has slowed andnet rental rates for top quality space has come down toattract and retain tenants. In the short term, we expect theleasing market will be stable in Grade A office space andvacant space will be absorbed. However, a large number ofnew office developments will add to the existing supplyin Chengdu from 2010 to 2011. Over 740,000 SM areexpected to be delivered over the next three years.The industrial sector is driven by Chengdu’s location andrising prominence as a hub city for logistics/distribution, andthe retail market is dominated by department stores and bigbox retailers.All property sectors in Chengdu should continue to benefitfrom a growing headquarters presence of multinationalcompanies, along with economic development efforts andpreferential policies designed to boost investment in the cityand the region.ContactNAI Asia PacificProperties, Ltd.+ 852 2281 7800Country DataArea (KM 2 )GDP Growth (%)GDP 2009 (US$ B)GDP/Capita (US$)Inflation Rate (%)UnemploymentRate (%)Interest Rate(%)1334.38.5%$4,757.74$3,565.73-0.06%4.3%5.31%Population (Millions) 1334.3Buffered by low levels of real estate debt and by capitalinflows from China, Hong Kong did not see a contraction inits real estate markets until October 2008. However,the steep decline in Q4 2008 continued into 2009, asHong Kong’s GDP growth contracted by 7.8% in Q1. Withthe government’s announced stimulus package of HK$87.6 billion (approximately 5.2% of GDP), the contractiondecreased to -3.8% in Q2 2009 and helped stabilize themarkets, coupled with a change in global sentiment.Commercial real estate followed a similar pattern. Rentsacross all sectors declined 20-30% from their peaks inQ3 2008, and began to stabilize in the second half of 2009.In the office market, Lehman Brothers’ collapse triggereda rapid contraction and relocation of the financial sector,creating a surge in CBD vacancies to 8% and a 30% declinein rents. However, the historically limited supply of primeoffices led some replacement tenants to move into the CBDonce liquidity returned in mid-2009 and vacancies fell to 5%.Industrial demand fell sharply in the first half of 2009 as thetrade and logistics sectors suffered, though rents fell by only20% from already low levels. Exits from the industrialinvestment sector by several prominent institutions andcontinued high vacancies have dampened the rebound incapital values. The crisis also triggered several retail chainconsolidations and rents fell by 20% in the first half of theyear. Supported by the return of Mainland Chinese tourists,rents and value in core districts have rebounded to pre-crisislevels during the second half of 2009.From an investment perspective, high yields of 6-7% in Q42008 triggered speculative purchases of over HK $4 billionof assets in Q2 and Q3 2009, with yields dropping to 3.5%.Capital values rebounded 30% despite continued declinesin rents and yields. Conversely, in early Q4 2009 rents beganstabilizing while capital values showed signs of weakening.This paradox highlights the volatile nature of Hong Kong’sreal estate market, which does not always follow currentfundamentals, but rather a mix of long term sentiment andnear term speculation, while heavily influenced by capitalinflows from China.At the end of 2009 the outlook for 2010 was mixed, withmarket pundits promoting a 5-15% recovery in 2010, despiteeconomists worldwide predicting a weak global economy andbubble-like symptoms in Hong kong and China. Our viewis that long term investment into China will support HK’seconomy and real estate market and any retraction will belimited in 2010.Chengdu At A GlanceConversion: 6.83 RMB = 1 US$ RENT/M 2 /MO US$ RENT/SF/YRLow High Low High VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)RMB 1,380.00 RMB 1,440.00RMB 1,380.00 RMB 1,440.00$ 18.77$ 18.77$$19.5919.59N/AN/AClass B (Secondary)SUBURBAN OFFICERMB 648.00 RMB 720.00 $ 8.81 $ 9.79 N/ANew Construction (AAA)Class A (Prime)RMB 1,080.00 RMB 1,200.00RMB 1,080.00 RMB 1,200.00$ 14.69$ 14.69$$16.3216.32N/AN/AClass B (Secondary)INDUSTRIALRMB 540.00 RMB 600.00 $ 7.35 $ 8.16 N/ABulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power CenterRegional MallsSolus Food StoresRMB 108.00RMB 108.00RMB 432.00RMB 432.00RMB 648.00RMB 648.00RMB 432.00RMB 648.00RMB 120.00RMB 120.00RMB 480.00RMB 480.00RMB 720.00RMB 720.00RMB 480.00RMB 720.00$$$$$$$$1.471.475.885.888.818.815.888.81$$$$$$$$1.631.636.536.539.799.796.539.79N/AN/AN/AN/AN/AN/AN/AN/ADEVELOPMENT LAND Low/M 2 High/M 2 Low/Acre High/AcreOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidentialN/A N/A N/A N/AN/A N/A N/A N/AN/A N/A N/A N/AN/A N/A N/A N/AN/A N/A N/A N/AN/A N/A N/A N/AHong Kong At A GlanceConversion 7.75 HKD = 1 US$ RENT/SF/MO US$ RENT/SF/YRLow High Low High VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALHKD 80.00HKD 45.00HKD 20.00HKD 25.00HKD 20.00HKD 12.00HKD 120.00HKD 105.00HKD 50.00HKD 40.00HKD 25.00HKD 15.00$$$$$$0.960.540.240.300.240.14$$$$$$1.441.260.600.480.300.185.0%8.0%10.0%25.0%10.0%15.0%Bulk WarehouseHKD 8.00 HKD 15.00 $ 0.10 $ 0.18 15.0%ManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power CenterRegional MallsSolus Food StoresHKD 10.00HKD 15.00HKD 250.00HKD 50.00HKD 25.00HKD 100.00N/AHKD 15.00HKD 20.00HKD 800.00HKD 100.00HKD 40.00HKD 300.00N/A$$$$$$0.120.183.000.600.301.20N/A$$$$$$0.180.249.591.200.483.60N/A10.0%15.0%3.0%15.0%10.0%5.0%N/ADEVELOPMENT LAND Low/M 2 High/M 2 Low/Acre High/AcreOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidentialN/A N/A N/A N/AN/A N/A N/A N/AN/A N/A N/A N/AN/A N/A N/A N/AN/A N/A N/A N/AN/A N/A N/A N/A2010 Global Market Report ■ www.naiglobal.com 28

Shanghai, ChinaXiamen, ChinaContactNAI Asia PacificProperties+86 21 6288 7333Country DataArea (KM 2 )GDP Growth (%)GDP 2009 (US$ B)GDP/Capita (US$)Inflation Rate (%)UnemploymentRate (%)Interest Rate(%)6.3458.5%$4,757.74$3,565.73-0.06%4.3%5.31%Population (Millions) 1334.3During the first half of 2009, the overall Chinese economyin general was dominated by a state of deflation characterizedby a slide in consumer and producer prices. Beijing’s US$586 billion stimulus package, coupled with Shanghai’s ownUS $14.5 billion 2010 Expo expenditure, combined to mitigatethe consequences of the downturn.A wave of new supply to the office market during the firsthalf of 2009 and declining demand fueled a rise in citywidevacancy rates as rental rates dropped by as much as25% year-over-year. Although demand has improved,approximately 800,000 SM of office space arrived on themarket in 2009, and is likely to have a negative impact onoccupancy and rental rates in 2010. During a “wait-andsee”stance in the first half of 2009 by mostinternational organizations, the government adjusted itspolicies on allocating land. Vacancy rates increasedwith several companies, including Intel, closing offices orrelocating outside of the CBD, and rental rates/pricesdeclined, particularly in the suburban areas of the city. Themarket registered increased activity in the second half ofthe year, but did not affect the depressed market rates,which we expect to persist into most of 2010.Demand throughout 2009 was steady in the retail marketcompared to other sectors with minor reductions inprice/rentals and occupancy rates. Limited new supply ofprime space in the run-up to Expo 2010 is likely to causeincreases in prices/rentals for most of 2010. Localinvestors dominated the market, especially at the start of2009 when valuations were attractive. The Exchange in Puxiand the Pufa Tower in Pudong were sold to localinvestors. It was only during the second half of 2009 thatmore conservative foreign financial institutions began toshow interest again in the real estate market.The stimulus package, 2010 Expo expenditure and taxrebates combined to reduce Shanghai’s economic falloutfrom a sharp decline in exports during 2009. However, thesepackages cannot fully support the export-oriented economyindefinitely and what the post-stimulus future holds forShanghai's economy and real estate remains to be seen.ContactNAI Derun+86 592 5168098Country DataArea (KM 2 )GDP Growth (%)GDP 2009 (US$ B)GDP/Capita (US$)Inflation Rate (%)UnemploymentRate (%)Interest Rate(%)1334.38.5%$4,757.74$3,565.73-0.06%4.3%5.31%Population (Millions) 1334.3Xiamen is not only ranked as the center of high-endconsumption in the Golden Delta of South Fujian Province,but is also the bridgehead for dealing across the TaiwanStrait and Southeast Asia.Land prices in Xiamen’s construction areas increasedsharply in 2009, influenced by the financial crisis; however,housing sales and values saw a decrease early in the yearwith a rebound for both realized after August. The residentialmarket is currently operating with prices at higher levelsthan in years past, resulting in fewer transactions. An adjustmentin price is predicted, which is expected to bring costsdown in both the housing and land sectors.Xiamen has witnessed an increase in development of newClass A office buildings as well as high-end hotels during thepast few years. Although there continues to be sufficientsupply, the leasing transactions of Class A office buildingsremain at a brisk pace in the CBD, especially in areas likeNorth Hubin Street and Lianyue Street. Room rates at bothhigh-end and mid-level hotels continue to rise.In 2009, the Xiamen retail market encompassed a total of3.5 million SM of space with 43,000 retail units/stores, orabout 1.44 SM per capita. The strongest demand is in thehigh-end luxury niche segment, where space fills up veryquickly even though there are many new projects openingto accommodate the demand. Among the new high-endluxury centers are the 12,000 SM Paragon shopping mall,which opened in December 2008 as part of a 100,000 SMmixed-use development, and the 110,000 SM SMII LifeStyle shopping mall, which opened in October 2009. Severalluxury brands entered the Xiamen retail market for the firsttime in 2009, including Gucci, Versace, Prada, Armani,Hermes and Montblanc.Industrial parks saw an increase in activity, keeping manytenants from moving from downtown (Xiamen Island) to thesuburban areas like Haicang, Jimei, Xiang’an and Tong’andistricts. The municipal industrial development bureaucontinued to focus on attracting technology, automotive,logistics, manufacturing and high-end agriculture to thesuburban area.Office rental rates are staggeringly high, which reflects theincreased demand for Class A and B office buildings. Afterthe increase in the housing market after August 2009,prices are expected to adjust to a stable level in 2010.Shanghai At A GlanceConversion: RMB 6.82 = 1 US$ RENT/M 2 YR US$ RENT/SF/YRLow High Low High VacancyDOWNTOWN OFFICENew Construction (AAA)RMB 1,640.00 RMB 2,920.00 $ 22.34 $ 39.78 60.0%Class A (Prime)RMB 1,460.00 RMB 3,066.00 $ 19.89 $ 41.77 18.0%Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)RMB 1,095.00 RMBRMB 1,022.00 RMB2,190.00 $1,643.00 $14.92 $13.92 $29.8322.3810.0%N/AClass A (Prime)RMB 912.00 RMB 1,570.00 $ 12.42 $ 21.39 N/AClass B (Secondary)INDUSTRIALRMB 657.00 RMB 800.00 $ 8.95 $10.90 N/ABulk WarehouseManufacturingRMBRMB255.00 RMB183.00 RMB438.00 $365.00 $3.47 $2.49 $5.974.9730.0%N/AHigh Tech/R&DRETAILRMB 365.00 RMB 1,460.00 $ 4.97 $ 19.89 N/ADowntownRMB10,950.00 RMB 16,425.00 $ 149.16 $ 223.74 N/ANeighborhood Service CentersCommunity Power CenterRegional MallsSolus Food Stores$N/AN/A109.00 $N/AN/AN/A437.00 $N/AN/AN/A14.85 $N/AN/AN/A59.53N/AN/AN/AN/AN/ADEVELOPMENT LAND Low/M 2 High/M 2 Low/SF High/SFOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidentialN/A N/A N/A N/ARMB 1,500.00 RMB 2,000.00 $ 219.94 $ 293.26RMB 450.00 RMB 2,000.00 $ 65.98 $ 293.26N/A N/A N/A N/AN/A N/A N/A N/AN/A N/A N/A N/AXiamen At A GlanceConversion: 6.82 RMB = 1 US$ RENT/M 2 /MO US$ RENT/SF/YRLow High Low High VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILRMBRMBRMBRMBRMBRMBRMBRMB14.0015.008.00N/A7.005.001.001.005.20RMBRMBRMBRMBRMBRMBRMBRMB23.0028.5015.00N/A13.0010.003.503.0013.80$$$$$$$$15.6116.728.92N/A7.805.571.111.115.80$$$$$$$$25.6431.7716.72N/A14.4911.153.903.3415.385.0%N/A3.0%N/A8.0%10.0%15.0%28.0%10.0%DowntownRMB 70.00 RMB 180.00 $ 78.04 $ 200.67 2.0%Neighborhood Service CentersCommunity Power Center (Big Box)Regional MallsSolus Food StoresRMBRMBRMBRMB10.005.0048.006.00RMBRMBRMBRMB55.0025.0065.0035.00$$$$11.15.5753.516.69$$$$61.3227.8772.4639.028.0%12.0%9.0%23.0%DEVELOPMENT LAND Low/M 2 High/M 2 Low/Acre High/AcreOffice in CBDLand in Office Parks)Land in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidentialN/A N/A N/A N/AN/A N/A N/A N/AN/A N/A N/A N/AN/A N/A N/A N/AN/A N/A N/A N/AN/A N/A N/A N/A2010 Global Market Report ■ www.naiglobal.com 29

GuamChennai, IndiaContactNAI ChaneyBrooks+1 671 649 8742Country DataArea (KM 2 )GDP Growth (%)GDP 2009 (US$ B)GDP/Capita (US$)Inflation Rate (%)1334.3N/A$2.70$15,000.002.50%Massive construction is expected to take place to accommodatethe transfer of approximately 8,000 US Marines and9,000 military dependents plus support personnel fromOkinawa to Guam by 2015. Island population is projectedto grow as much as 25% over the five-year period. Inanticipation of the build-up, more than 15,000 foreignlaborers, primarily from the Philippines and South EastAsia, are in Guam, representing the first wave of populationgrowth.Meanwhile, Guam continues to remain one of the mostpopular tourist destinations for the Asian markets, primarilyfor the Japanese and Koreans. Industry experts continue todebate the impact of the construction and military build-upon the island’s allure as a resort destination. The growth isexpected to result in pent up demand for industrial, residentialand office products, in this order. Hotels and shoppingcenters should also see an immediate benefit from the influxof new residents and transient workers. Guam’s officemarket is expected to gradually show steady gains ascontractors and government-related offices begin setting upoperations in the island. Due to the lack of quality officeproduct, the market will be ripe for new office buildingdevelopment, especially in the Hagatna and Tamuningregions. Until new inventory is introduced, the demand foroffice property should begin to drive up office rents.Guam’s future looks bright and continues to benefit from ageneral sense of optimism from both opportunistic US andforeign investors. Over the course of the next three yearsGuam’s real estate market should prove to be one of themost stable markets in the United States.ContactNAI Hemdev'sInternational RealtyServices+91 44 2822 9595Country DataArea (KM 2 )GDP Growth (%)GDP 2009 (US$ B)GDP/Capita (US$)Inflation Rate (%)1334.35.36%$1,242.65$1,032.718.66%Commercial real estate transactions, considered a keyindicator of economic activity in Chennai, began showing thefirst signs of stability with over 1.7 million SF of space havingbeen absorbed in Chennai during the first three quarters of2009. Suburban markets of Manapakkam, Perungudi andAmbattur continue to be most favored by companies becauseof proximity and quality space available.The commercial real estate market in 2009 saw a declinein rentals, lower absorption and increasing vacancy rates.Following the financial turmoil, a paradigm shift in theperception of risk was witnessed, resulting in a weakeningof demand, the slow-down of expansion plans and migrationto more cost-effective locations, all of which put pressure onlease rentals.A pick-up in inquiries for space from the hospitality, healthcareand educational sectors was witnessed in Q2 and Q3.Residential land transactions saw more activity in Q2 andQ3 in central areas of the city for fairly priced properties byend-users.Most retail micro markets saw a correction in rentalvalues in line with the downward rental trends witnessed inIndia. There has been a slight upward trend in thenumber of inquiries for retail space since Q2 with retailerstaking into account the corrections seen in rentals, and landlordsbeing more open to reasonable prices.One of the highlights in the retail market in Chennai was theopening of The Ampa Skywalk Mall. Mall space supply is setto increase in 2010 with the opening of ExpressAvenue and Coromandel Plaza. The market for return oninvestment properties saw a pick up with buyers scouting fortenanted office spaces as the prices reached realistic levels.With good quality supply readily available, it will take sometime for the supply-demand gap to be bridged. Therefore,rates in the commercial real estate market are expected toremain stagnant or under downward pressure for themedium term.UnemploymentRate (%)11.40%UnemploymentRate (%)7.32%Interest Rate(%)N/AInterest Rate(%)4.75%Population (Millions)0.178Population (Millions) 1203.28Guam At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power CenterRegional Malls$$$$$$$$N/AN/A26.00N/AN/A14.007.807.80N/A33.0013.009.6036.00N/AN/A$ 42.00N/AN/A$ 36.00$ 18.00$ 18.00N/A$ 108.00$ 60.00$ 15.00$ 72.00$$$$$$$$N/AN/A28.20N/AN/A19.7512.3512.35N/A72.0031.0011.2554.00N/AN/A18.0%N/AN/A23.0%12.0%12.0%N/A16.0%N/AN/AN/ADEVELOPMENT LANDOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidentialLow(Price/Acre)High(Price/Acre)N/AN/AN/AN/AN/AN/A$ 753,000.00 $1,077,000.00$2,018,000.00 $2,023,000.00$ 108,000.00 $ 680,000.00Chennai At A GlanceConversion: 46 INR = 1 US$ RENT/SF/MO US$ RENT/SF/YRLow High Low High VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)INR 60.00INR 60.00INR 70.00INR 75.00$ 15.65$ 15.65$$18.2619.57N/AN/AClass B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILINR 35.00INR 25.00INR 25.00INR 20.00INR 12.00INR 17.00INR 18.00INR 50.00INR 45.00INR 45.00INR 35.00INR 20.00INR 22.00INR 25.00$$$$$$$9.136.526.525.223.134.434.70$$$$$$$13.0411.7411.749.135.225.746.52N/AN/AN/AN/AN/AN/AN/ADowntownNeighborhood Service CentersCommunity Power CenterINR 100.00INR 50.00N/AINR 150.00INR 80.00N/A$ 26.09$ 13.04N/A$$39.1320.87N/AN/AN/AN/ARegional MallsINR 35.00 INR 60.00 $ 9.13 $ 15.65 N/ASolus Food StoresDEVELOPMENT LANDINR 39.00Low/AcreINR 45.00High/Acre$ 10.17Low/Acre$ 11.74High/AcreN/AOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidentialINR 4,000 INR 6,000 $ 86.96 $ 130.43N/A N/A N/A N/AINR 3,200,000 INR 10,000,000 $ 69,565.22 $ 217,391.30N/A N/A N/A N/AINR 540,000,000 INR 720,000,000 $ 11,739,130.43 $ 15,652,173.91INR 270,000,000 INR 600,000,000 $ 5,869,565.22 $13,043,478.262010 Global Market Report ■ www.naiglobal.com 30

Delhi, Gurgaon, IndiaHyderabad, Pradesh, IndiaContactNAI Collaborators India+91 11 4668 7000Country DataArea (KM 2 )GDP Growth (%)GDP 2009 (US$ B)GDP/Capita (US$)Inflation Rate (%)UnemploymentRate (%)Interest Rate(%)1334.35.36%$1,242.65$1,032.718.66%7.32%4.75%Population (Millions) 1203.28The current real estate inventory in India is estimated to beworth US $15 billion and anticipated to develop at the rateof 25% annually in the coming decade due to the boomingeconomy, favorable demographics and liberalized ForeignDirect Investment (FDI) regime. Economic recovery during2010-2011 is likely to revive the interest of foreign investorsin India’s real estate market. Despite the global economicdownturn, India has been able to retain its position as apreferred investment destination.The economy is regaining momentum, with India adding upto 40 million SF of office space by the end of 2009. Thehuge addition of new supply is expected to result in acorrection. The CBD witnessed a rise in vacancy levels dueto high rental rates, limited and poor quality of buildings,relocation of companies to more cost effective options orlease renegotiations. As a result, the CBD witnesseda correction in rental rates back to more realistic levels.Outlying areas are becoming more viable anddemand is increasing due to better Metro connectivity.Upcoming areas like Saket & Jasola, witnessed the deliveryof a large amount of new office space, thereby escalatingthe vacancy level. Even Gurgaon and Noida witnessed anupsurge in the vacancy level due to an increase in the supplyand the completion of various projects, along with availabilityof sublease options, thus keeping downward pressure onthe rental rates.The residential sector witnessed a fall due to the globaleconomic outlook in 2009, but is expected to pick up in2010 due to a shortfall of over 25 million new homes, mostlyin the low and middle-income groups, leading to pricesmoving higher. Delhi’s retail market was slow in 2009 withjust 10% of the transactions happening in the last fewmonths. India’s retail market is expected to see the additionof over 1 million SF with 100 new malls.Revival is on its way in the real estate market, spurred byprice corrections, new launches and lowering of interestrates. The commercial market has also started showingsigns of revival, driven by a spurt in office space resulting inmore conversions taking place in CBD and PBD areas withinitial rise in demand for less costly premises. Though mostof the deals that happened were of relocation. The officemarket is showing visible signs of renewal in demand.ContactNAI Hyderabad+91 40 233105712Country DataArea (KM 2 )GDP Growth (%)GDP 2009 (US$ B)GDP/Capita (US$)Inflation Rate (%)UnemploymentRate (%)Interest Rate(%)1334.35.36%$1,242.65$1,032.718.66%7.32%4.75%Population (Millions) 1203.28With a projected growth ratio of around 7%, India is makingprogress towards becoming one of the leading economiesin the world over the next several years. Hyderabad, the fifthlargest city in the country, is on the radar for top IT, Pharmaceuticaland Aviation conglomerates in the world. NAIHyderabad expects robust growth in 2010.With a stable Government in place, the Hyderabad market isexpected to stabilize and grow quickly over the next few yearsdue to a strong commitment from the Governmentto improve basic infrastructure and connectivity. Majorinfrastructure projects such as the 262 KM Outer Ring Road(ORR), 13.5 KM elevated expressway, 22 KM eight laneexpressway connecting Gachibowli to Shamshabad, MetroRail and Shamshabad International Airport have been instrumentalin making Hyderabad one of the leading cities in India.Commercial real estate transactions have seen a substantialincrease post elections and are expected to stabilize withbetter occupancy rates in the coming months. The postelection months have seen a rush in the end user market inthe segment of 2 BHK and 3 BHK with sales happening inthe mid-market segment of prices between US $1.5 millionto US $5 million. The retail market in Hyderabad hasnot seen a material increase or decrease in the past fewquarters due to limited availability of new retail space andthe current market slump. Despite the announcement ofmore than 50 malls and retail buildings during the boomperiod, only a few malls in Prasads, City Center, and GVKhave been successfully operational. Inorbit (the largest mallin South India) and Night Bazar at Shilparamam are scheduledfor launch in the near future.The overall market scenario in Hyderabad is expected to bepositive in the Corporate, IT, Pharmaceutical, medium costresidential and Warehousing sectors. Negative trends areexpected in Land, Investment and Retail segments.Delhi At A GlanceRENT/SF/YRRENT/SF/YRLow High Low High VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAIL$$$$$$$$$67.0060.0025.0029.0040.0021.003.004.004.00$$$$$$$$$73.0080.0053.0053.0053.0033.005.0012.0012.00$$$$$$$$$67.0060.0025.0029.0040.0021.003.004.004.00$$$$$$$$$73.0080.0053.0053.0053.0033.005.0012.0012.0025.0%10.0%15.0%50.0%20.0%50.0%50.0%40.0%40.0%DowntownNeighborhood Service CentersCommunity Power Center$ 40.00N/AN/A$ 160.00N/AN/A$ 40.00N/AN/A$ 160.00N/AN/A20.0%N/AN/ARegional Malls$ 13.00 $ 67.00 $13.00 $ 67.00 20.0%Solus Food StoresN/A N/A N/A N/A N/ADEVELOPMENT LAND Low/Acre High/Acre Low/Acre High/AcreOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidential$ 120.00 $ 180.00 $ 120.00 $180.00$ 7,000,000 $ 14,000,000 $ 7,000,000 $ 14,000,000$ 2,800,000 $ 8,400,000 $ 2,800,000 $ 8,400,000$ 1,100,000 $ 1,900,000 $ 1,100,000 $ 1,900,000$ 18,000,000 $ 19,000,000 $ 18,000,000 $ 19,000,000$ 250,000 $ 800,000 $ 250,000 $ 800,000Hyderabad At A GlanceConversion 50 Rs = 1 US$ RENT/M2/MONTH US$ NET RENT/SF/YEARLow High Low/SF High/SF VacancyDOWNTOWN OFFICERs 7,750.00 Rs 12,917.00 $ 15.56 $ 25.94 N/ANew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALRs 6,458.00Rs 5,167.00Rs 6,458.00Rs 5,813.00Rs 3,875.00Rs 1,162.00Rs 11,625.00Rs 9,688.00Rs 9,042.00Rs 7,750.00Rs 5,813.00Rs 2,325.00$$$$$$12.9710.3712.9711.677.782.33$$$$$$23.3419.4518.1515.5611.674.67N/AN/AN/AN/AN/AN/ABulk WarehouseManufacturingHigh Tech/R&DRs 1,292.00Rs 1,550.00RsRs2,583.003,229.00$$2.593.11$$5.196.48N/AN/ARETAILDowntownRs 12,917.00Rs 9,688.00Rs 32,292.00Rs 16,146.00$$25.9419.45$$64.8432.42N/AN/ANeighborhood Service Centers Rs 7,750.00 Rs 9,688.00 $ 15.56 $ 19.45 N/ACommunity Power CenterRegional MallsRs 7,750.00N/ARs 11,625.00N/A$ 15.56N/A$ 23.34N/AN/AN/ADEVELOPMENT LAND Low High Low/SF High/SFOffice in CBDLand in Office ParksRs 435,600,000Rs 290,400,000Rs 580,800,000Rs 363,000,000$ 9,414,307.33$ 6,276,204.88$12,552,409.77$ 7,845,256.11Land in Industrial Parks Rs 96,800,000 Rs 145,200,000 $ 2,092,068.29 $ 3,138,102.44Office/Industrial Land - Non-park Rs 72,600,000 Rs 121,000,000 $ 1,569,051.22 $ 2,615,085.37Retail/Commercial Land Rs 338,800,000 Rs 435,600,000 $ 7,322,239.03 $ 9,414,307.33ResidentialRs 193,600,000 Rs 290,400,000 $ 4,184,136.59 $ 6,276,204.882010 Global Market Report ■ www.naiglobal.com31

Kolkata, IndiaPune, Maharashtra, IndiaContactNAI NK Realtors Pvt. Ltd.+91 33 24868016/7017/7519Country DataArea (KM 2 )GDP Growth (%)GDP 2009 (US$ B)GDP/Capita (US$)Inflation Rate (%)1334.35.36%$1,242.65$1,032.718.66%With a population of more than 15 million people, Kolkata isthe world’s 8th largest and India’s third largest metropolitancity. It is the capital of the Indian state of West Bengal anda main center for commerce and financial services in easternIndia and northeastern states. The city is home to manyregional and corporate headquarters.The total office inventory in Kolkata is in excess of 26 millionSF. About 85% of the inventory is in the suburban areassuch as Topsia, Kasba, Sector-V and Rajarhat, includingIT parks and IT SEZ’s. Downtown Class A office propertyrental rates have fallen from INR 150-160/SF per month inSeptember 2008 to INR 90-100/SF per month in September2009. Vacancy in Class A space in the CBD was at 4%,while Sector-V experienced 50% vacancy overall with rentalrates of INR 40-45/SF per month. A significant portion ofthe current office demand came from the telecom sectordue to the telecom boom and recorded over 365,000 SF intransactions since January 2009.The retail sector in Kolkata suffered the most over the last12 months due to plunging sales and high occupancy costs.Rental values started falling in October 2008. Rental ratesin downtown mall space declined around 40% and averagerentals in suburban malls fell around 17%.Kolkata’s residential market has experienced a moderaterecovery since March 2009 due to the growing demand foraffordable housing. A number of such housing projects likeParvati Garden in Birati, Sugam Sabuj in Narendrapur andGreen Field City near Behala Chowrasta are coming up inthe Kolkata market.Kolkata had been successful in pulling significant industrialinvestments over the last couple of years. But the exitof TATA Motors small car project impacted the overallinvestment climate. In May 2009, the government’s proactivemeasures towards industrialization have brought Bengalback into focus of global investors.ContactNAI Property Terminus+91 20 25511900Country DataArea (KM 2 )GDP Growth (%)GDP 2009 (US$ B)GDP/Capita (US$)Inflation Rate (%)1334.37.90%$1,242.65$1,032.718.66%Pune is strategically located 150 kilometers from Mumbai,the financial capital of India. The key drivers of this city stemfrom the turbine industries like Alfa-Laval, Thermax, etc.Bharat Forge is the world's second largest forging company.Pune also is home to large IT companies like HSBC andInfosys. The auto industry and telecommunications sectorsare on an upward trend, while IT remains reticent.Pune has not escaped the effects of the global slowdown,with rentals decreasing in the range of 10-40% .Vacancyrates reached a new high, the retail market crashed and thegloom of uncertainty spread fast even through the residentialsector.In Q3, Pune began to bounce back after a positive changein the economy. The markets were definitely abuzz withhectic shopping heralded by massive sales in gold. Lack ofconfidence in the market was replaced by vibrant buoyancyand a spirit of cheer and celebration prevails. Genuineinvestors are taking advantage of the market correction andbuilders are threatening to hike rates. Finally, the muchawaited stability is having an impact.Some of the larger deals recorded in Pune were SynechronTechnologies Pvt. Ltd in. Embassy for 75,000 SF, SEZ atHinjewadi TietoEnator at EON SEZ in Kharadi at 60,000 SF,Aegis BPO at Commerzone in Yerwada with 50,000 SF, BNYMellon at Magarpatta Cybercity in Hadapsar at 125,000 SF,and Sungard at EON SEZ in Kharadi with 60,000 SF.Construction that had been put on hold is now opening upwith new developments like ZerO 1ne at Ghorpadi; PrabhaveeTech Park, Nano Space, Amar Synergy Connaught Road, andAmar Paradigm at Baner; and several more. Pune’s futureappears to be bright in all commercial property sectors.Pune is known as the Oxford of the east, boasting someof the finest educational institutions, namely the highlyregarded Pune University. Pune is the seventh largest metrocity in India and has the highest per capita income inthe country.UnemploymentRate (%)7.32%UnemploymentRate (%)7.32%Interest Rate(%)4.75%Interest Rate(%)4.75%Population (Millions)1203.28Population (Millions) 1203.28Kolkata At A GlanceConversion: 46 INR = 1 US$ NET RENT/SF/MO US$ RENT/SF/YRLow High Low High VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power CenterRegional MallsINR 128.00INR 100.00INR 67.00INR 50.00INR 45.00INR 39.00INR 12.00N/AN/AINR 91.00INR 95.00INR 95.00INR 123.00INR 156.00INR 111.00INR 100.00INR 61.00INR 50.00INR 45.00INR 20.00N/AN/AINR 245.00INR 145.00INR 162.00INR 251.00$$$$$$$$$$$33.3926.0917.4813.0411.7410.173.13N/AN/A23.7423.7424.7832.09$$$$$$$$$$$40.7028.9626.0915.9113.0411.745.22N/AN/A63.9163.9142.2665.4825.0%4.0%5.0%70.0%60.0%40.0%25.0%N/AN/A15.0%14.0%71.0%2.0%Solus Food StoresDEVELOPMENT LANDINR 33.00Low/AcreINR 39.00High/Acre$ 8.61Low/SF$10.17 N/AHigh/SFOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidentialINR 420,000,000 INR 600,000,000 $ 209.61 $ 299.44INR 150,000,000 INR 200,000,000 $ 74.86 $ 99.81INR 15,000,000 INR 20,000,000 $ 7.49 $ 9.98INR 12,000,000 INR 30,000,000 $ 5.99 $ 14.97INR 400,000,000 INR 600,000,000 $ 199.62 $ 299.44INR 12,000,000 INR 600,000,000 $ 5.99 $ 299.44Pune At A GlanceConversion: 45 INR = 1 US$ RENT/SF/MO US$ RENT/SF/YRLow High Low High VacancyCITY CENTER OFFICENew Construction (AAA)Class A (Prime)INR 45.00INR 50.00INR 75.00INR 60.00$ 12.00$ 13.33$$20.0016.0080.0%40.0%Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)INR 35.00INR 30.00INR 45.00INR 50.00$$9.338.00$$12.0013.3350.0%55.0%Class A (Prime)INR 50.00 INR 60.00 $ 13.33 $ 16.00 60.0%Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILINR 35.00INR 12.00INR 18.00INR 18.00INR 45.00INR 26.00INR 45.00INR 45.00$$$$9.333.204.804.80$$$$12.006.9312.0012.0072.0%5.0%0.5%N/ADowntownNeighborhood Service CentersCommunity Power CenterRegional MallsSolus Food StoresINR 70.00INR 70.00INR 70.00INR 60.00INR 100.00INR 150.00INR 120.00INR 120.00INR 100.00INR 125.00$ 18.67$ 18.67$ 18.67$ 16.00$ 26.67$$$$$40.0032.0032.0026.6733.3315.0%20.0%25.0%35.0%20.0%DEVELOPMENT LAND Low/Acre High/Acre Low/Acre High/AcreOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidentialINR 6,000.00 INR 8,000.00 $ 133.00 $ 177.00INR 700.00 INR 5,000.00 $ 15.00 $ 111.00INR 50.00 INR 500.00 $ 1.00 $ 11.00INR 3,000.00 INR 10,000.00 $ 67.00 $ 222.00INR 1,200.00 INR 10,000.00 $ 27.00 $ 222.00INR 2,500.00 INR 8,500.00 $ 55.00 $ 189.002010 Global Market Report ■ www.naiglobal.com 32

Punjab, IndiaTokyo, JapanContactNAI Space Alliance+91 11 55854444Country DataArea (KM 2 )GDP Growth (%)GDP 2009 (US$ B)GDP/Capita (US$)Inflation Rate (%)1334.35.36%$1,242.65$1,032.718.66%The past year in Punjab brought much anxiety as demandin the real estate market fell sharply. The global economicmeltdown and slowing demand, coupled with a liquiditycrisis, resulted in mega projects moving at a snail’s pace.The first half of 2009 was even tougher than 2008as demand across all sectors--commercial, retail andresidential--continued to remain weak. In 2009, almostevery developer had reported a decline in leases and salesin all markets.The office market saw a downward trend with severalcompanies choosing to shut down operations. Even localdevelopers have closed their marketing offices at differentlocations and many deferred their expansion plans, furtherimpacting rates and leading to a drop in rentals by 15%.Major industry in Punjab includes a wide range of productsfrom ready made garments and hosiery to machine toolsand auto parts. This sector has seen a 45% dip in Q3 2009compared to last year.The retail sector also felt the pinch of the economic slowdown.High rentals in up-market locations in Punjab forcedretailers to slow expansion and to shut down unproductivestores. Ludhiana, the industrial town of Punjab and the hubof retail expansion, also showed signs of a slowdown withfewer inquiries from retailers in Q3 2009.The price of residential properties also continued to declinein 2009. Reduced real estate rates, lower interest rates andbetter incentives for customers to purchase homes will goa long way in rebuilding the entire real estate industry. Theremainder of 2009 saw customers who had deferred homepurchases in 2008 take action and purchase homes giventhe affordability of product on the market.Punjab carries good potential for the real estate sector inthe long term. The past year was not excellent for this sectoras there was no demand at all. The impact of the economicslowdown is going to stay for another six months.ContactNAI Japan+81 3 5418 8747Country DataArea (KM 2 )GDP Growth (%)GDP 2009 (US$ B)GDP/Capita (US$)Inflation Rate (%)1334.3-5.37%$5,048.63$39,573.49-1.13%With the deepening decline in all sectors in 2009, real estatemarkets in Japan’s key centers of Tokyo and Osaka haveremained in a depressed state. The inability for organizationsto obtain loans, whether new or extensions on alreadyexisting loans, has resulted in many large and small defaultsthat have continued to only worsen an already stagnantsituation. A record number of developers have gone bankruptas lenders refuse to roll-over loans that had previouslybeen readily available with easy terms.Despite this, many sellers have remained quite defiant andthe massive drop in sale prices that many had expected hasnot yet been realized. A relatively large amount of producthas made its way to the market, yet much of it remains atpricing that is not appealing to many potential investors. Theinvestor interest in the Japanese market, particularly inTokyo assets, has risen continually this year with many fundspoised to take advantage of opportunities that offer significantyields.The remainder of 2009 will likely see an increase in transactionsas the gaps between buyer and seller expectationsclose. With the prevailing economic conditions there hasbeen a continuing low demand for rental of office, retail(particularly for medium to high-end imported brands),residential, industrial and hospitality properties. Rents havebeen in a steady decline particularly in the retail and officesectors with terms becoming more and more favorablefor tenants. Class A office rents show evidence of this downwardtrend.Many major office buildings have relatively high levels ofvacancy at 5.5 % for Class A office buildings and 5.8 % forClass B. As a result, after years of absence, free rent periods,on top of already reduced rental rates, have returned tothe market.UnemploymentRate (%)7.32%UnemploymentRate (%)5.4%Interest Rate(%)4.75%Interest Rate(%)0.1%Population (Millions)1203.28Population (Millions) 127.576Punjab At A GlanceConversion: 45 INR = 1 US$ RENT/M 2 /MO US$ RENT/SF/YRLow High Low High VacancyCITY CENTER OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersN/AINR 370.00INR 209.00N/AN/AN/AINR 126.00N/AN/AN/AN/AINRINRINRN/A540.00301.00N/AN/AN/A232.00N/AN/AN/AN/A$$$N/A9.175.18N/AN/AN/A3.12N/AN/AN/AN/A$$$N/A13.387.46N/AN/AN/A5.75N/AN/AN/AN/AN/A18.0%16.0%N/AN/AN/A14.0%N/AN/AN/AN/ACommunity Power CenterRegional MallsSolus Food StoresINR 1,088.00INR 1,060.00N/AINR 1,586.00INR 1,836.00N/A$ 26.95$ 26.26N/A$$39.2945.48N/A11.0%15.0%N/ADEVELOPMENT LAND Low/Acre High/Acre Low/Acre High/AcreOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidentialN/A N/A N/A N/AN/A N/A N/A N/AN/A N/A N/A N/AN/A N/A N/A N/AN/A N/A N/A N/AN/A N/A N/A N/ATokyo At A GlanceConversion:90 JPY = 1 US$ RENT/M 2 /MO US$ RENT/SF/YRLow High Low High VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power CenterRegional MallsJPY 6,667.00 JPY 12,727.00 $ 82.58 $ 157.65 N/AJPY 5,455.00 JPY 12,120.00 $ 67.57 $ 150.13 5.5%JPY 3,636.00 JPY 11,515.00 $ 45.04 $ 142.64 5.8%JPY 6,969.00 JPY 8,789.00 $ 86.32 $ 108.87 N/AJPY 4,849.00 JPY 7,273.00 $ 60.06 $ 90.09 10.1%JPY 1,818.00 JPY 6,060.00 $ 22.52 $ 75.07 18.3%JPY 1,045.00 JPY 3,203.00 $ 12.94 $ 39.68 N/AJPY 1,358.00 JPY 2,732.00 $ 16.82 $ 33.84 N/AN/A N/A N/A N/A N/AJPY 5,890.00 JPY 18,023.00 $ 72.96 $ 223.25 N/AJPY 4,385.00 JPY 8,770.00 $ 54.32 $ 108.63 N/AJPY 3,775.00 JPY 7,260.00 $ 46.76 $ 89.93 N/AJPY 1,890.00 JPY 3,500.00 $ 23.41 $ 43.35 N/AN/A N/A N/A N/A N/ADEVELOPMENT LAND Low/SF High/SF Low/SF High/SFOffice in CBDJPY 6,330,000 JPY 67,000,000 $ 70,333.33 $ 744,444.44Land in Office ParksN/A N/A N/A N/ALand in Industrial ParksOffice/Industrial Land - Non-parkJPYJPY330,000 JPY 1,500,000786,000 JPY 5,790,000$$3,666.678,733.33$$16,666.6764,333.33Retail/Commercial LandResidential (per M 2 )JPY 1,700,000 JPY 36,340,000JPY 1,300,000 JPY 6,300,000$$18,888.8914,444.44$$403,777.7870,000.002010 Global Market Report ■ www.naiglobal.com 33

Kuala Lumpur, MalaysiaSingaporeContactNAI Reapfield+60 3 2713 3399Country DataArea (KM 2 )GDP Growth (%)GDP 2009 (US$ B)GDP/Capita (US$)Inflation Rate (%)UnemploymentRate (%)Interest Rate(%)1334.3-3.3%$207.35$7,468.99-0.10%3.60%5.5%The dark clouds of late 2008 and early 2009 gave wayto optimism as the Kuala Lumpur market adjusted to thecurrent regional and global economies. An equities rallymidway through the year also aided the property market.The economy continued to be driven by the service andmanufacturing sector. The Malaysian Institute of EconomicResearch revised its forecast for 2009 GDP upward to acontraction of 3.3% from 4.2%. A rise from the earlierpredicted 2.8% to a positive 3.7% is expected for 2010.Rental rates in the market were strong for newly launchediconic buildings like UOA Bangsar (suburban) at RM 5.30and G Tower (CBD) at RM 6.50. The average occupancy inKuala Lumpur in the first half of 2009 was 83%. Roughly 12million SF of new space is expected to enter the market bythe end of 2010.Darul Takaful, Wisma Chase Perdana, Wisma Dijaya, WismaGlomac 3, Citibank Tower (50%) and Block B GBC transactionsbrought confidence to the office market, with theCitibank Tower partial sale in August valued at RM 828/SFand the Darul Takaful sale in March valued at RM 636/SF,indicating positive investor appetite.The manufacturing sector embraced the challenges ofreduced demand from major markets in Europe and the US.Industrial properties saw a correction of 20-30% fordetached and semi-detached properties in the Klang Valley;however, detached buildings in prime locations continuedto attract interest.Retail rates experienced a 10-20% decrease. Averageoccupancy rates stood at 85-90%. An estimated 1 millionSF is expected to enter the already crowded Klang Valleymarket in 2009 with an additional 2.3 million SF in 2010.The conditional sale of a prime 2.62-acre parcel of landalong Jalan Ampang in the City’s Golden Triangle for RM148.2 million made headlines in early 2009. The marketseems set for a selective play by developers who areexpected to introduce new and modern designed industrialbuildings.ContactNAI Singapore+65 63337738Country DataArea (KM 2 )GDP Growth (%)GDP 2009 (US$ B)GDP/Capita (US$)Inflation Rate (%)UnemploymentRate (%)Interest Rate(%)1334.3-3.33%$163.13$34,346.03-0.21%3.63%0.38%In a concerted manner similar to other parts of Asia, Singaporeemerged from the recession that ended with the release ofQ3 2009 economic data. The manufacturing sector expandedby 35% quarter-over-quarter and the service producingindustries expanded by 9%. However, the construction sectordeclined by 0.6%.The office market in 2009 saw a sharp decline of almost 40-50% in prime office rental rates in the first half of the yearstemming from the economic downturn. The decline of primeoffice rentals moderated in Q3 2009. We forecast the declineof prime office rentals in 2010 will moderate given thestronger economic momentum, even with greater officesupply coming on stream with MBFC, Asia Square and othernew developments in 2010. Class A vacancy rose to 4% inQ2 2009, up from 3.5% in the previous quarter.Large transactions in 2009 included the S $172 millionpurchase of three separate office buildings in a collectivesale; Aviva Building, Ceil House and VTB Building with a totalstrate area of 185,019 SF at a cost of S$929 SF. Strata titledfloors in Prudential Towers at level 20 to 25 were sold toKREIT who paid S$106.29 million or S$1,579 SF.In the retail market, Prime Orchard Road continues to transformand three major shopping centers will have opened byChristmas 2009; ION Orchard, Orchard Central and 313Sommerset. There are major additions and renovations atPark Hotel, Meritus Mandarin Hotel and 111 SommersetRoad. Prime Orchard Road rent averaged S$33/SF/month inQ3 2009, a decrease of 3.0% quarter over quarter. However,prime suburban rents inched up 0.7% quarter over quarter toaverage $28/SF/month in Q3 2009.The top five investments in 2009 were: SPA-led consortiumputs in a top bid of S$541.9m for a mall being developed inclements by Housing & Development Board. UOL’s successfulbid in the government residential land tender for the landparcel at Dakota Crescent for S$329 million (S$509/SFplot ratio); Swissotel Merchant Court was sold for S$260million to TA Enterprise; Katong Mall is sold for S$247.6million bought bu a consortium of investors led by formercapital and retail head. ARA purchased Suntec InternationalConvention & Exhibition Centre for S$235 million.Population (Millions) 27.761Population (Millions) 4.75Kuala Lumpur At A GlanceConversion:3.375 RM = 1 US$ RENT/SF/MO US$ RENT/SF/YRLow High Low High VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power CenterRegional MallsRM 5.30 RM 6.50 $ 18.84 $ 23.11 N/ARM 5.50 RM 9.00 $ 19.56 $ 32.00 3.0%RM 3.50 RM 4.50 $ 12.44 $ 16.00 15.0%RM 3.50 RM 4.50 $ 12.44 $ 16.00 N/ARM 4.00 RM 4.50 $ 14.22 $ 16.00 15.0%RM 2.50 RM 3.50 $ 8.89 $ 12.44 20.0%RM 1.20 RM 1.40 $ 4.27 $ 4.98 N/ARM 1.50 RM 2.00 $ 5.33 $ 7.11 N/ARM 2.00 RM 2.50 $ 7.11 $ 8.89 N/ARM 13.50 RM 14.40 $ 48.00 $ 51.20 10.0%RM 7.00 RM 20.00 $ 24.89 $ 71.11 10.0%RM 2.50 RM 12.00 $ 8.89 $ 42.67 15.0%RM 22.00 RM 28.00 $ 78.22 $ 99.56 5.0%N/A N/A N/A N/A N/ADEVELOPMENT LAND Low/SF High/SF Low/SF High/SFOffice in CBDRM 1,000.00 RM 1,500.00 $ 296.30 $ 444.44Land in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRMRMRM200.0050.0025.00RMRMRM259.0070.0035.00$$$59.2614.817.41$$$76.7420.7410.37Retail/Commercial LandRM 300.00 RM 400.00 $ 88.89 $ 118.52Residential (per M 2 )RM 50.00 RM 70.00 $ 14.81 $ 20.74Singapore At A GlanceConversion: 1.38 SGD = 1 US$ RENT/SF/YR US$ RENT/SF/YRLow High Low High VacancyCITY CENTER OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILSGDSGDSGDSGDSGDSGDSGDSGD72.0072.0060.0054.0054.0036.00N/A14.0030.00SGDSGDSGDSGDSGDSGDSGDSGD120.00120.0090.0072.0072.0054.00N/A17.0033.00$$$$$$$$52.1752.1743.4839.1339.1326.09N/A10.1421.74$$$$$$$$86.9686.9665.2252.1752.1739.13N/A12.3223.9120.0%5.0%10.0%20.0%10.0%15.0%N/A25.0%15.0%DowntownSGD 264.00 SGD 480.00 $ 191.30 $ 347.83 3.0%Neighborhood Service CentersCommunity Power CenterN/AN/AN/AN/AN/AN/AN/AN/AN/AN/ARegional MallsSGD 144.00 SGD 300.00 $ 104.35 $ 217.39 2.0%Solus Food StoresN/A N/A N/A N/A N/ADEVELOPMENT LAND Low/SF High/SF Low/SF High/SFOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidentialSGD 800.00 SGD 1,200.00 $ 579.71 $ 869.57SGD 500.00 SGD 800.00 $ 362.32 $ 579.71SGD 30.00 SGD 100.00 $ 21.74 $ 72.46SGD 20.00 SGD 50.00 $ 14.49 $ 36.23SGD 1,000.00 SGD 1,500.00 $ 724.64 $1,086.96SGD 600.00 SGD 2,000.00 $ 434.78 $1,449.282010 Global Market Report ■ www.naiglobal.com 34

Seoul, South KoreaTaipei, TaiwanContactNAI Korea+82 2 6205 3500Country DataArea (KM 2 )GDP Growth (%)GDP 2009 (US$ B)GDP/Capita (US$)1334.3-0.99%$800.29$16,449.90The Korean economy has improved faster than expected.The global market share of products such as automobile,semiconductor and cell phones increased and conglomeratessuch as Samsung, Hyundai and LG recorded high profits.Korea's quarterly GDP growth of 2.3% for the April-to-Juneperiod was the highest among members of the OECD.Overall, Class A office buildings remain stable with lowvacancy rates but Class B buildings are experiencing highvacancy rates with rents decreased by landlords’ incentivessuch as longer free rent periods, not seen before in Class Boffice buildings. It is expected that the rent of prime buildingswill decrease in Q4 due to an increase in vacancy rates anda new supply of office space in the CBD.The investor demand for commercial properties revived fromQ2 was due to the government's drive to prevent a residentialreal estate bubble from growing larger. The notable transactionsthis year are the ING Tower (KRW 400 billion), DACOM(KRW 182 billion), and Pacific Tower (KRW 153 billion). Thecapitalization rate has seen a slight decrease to 5.5%-6%.The industrial market is also suffering from high vacancyrates of 15%-20% with rent down 20% from the previousyear. Sellers outnumbered buyers in 2009, but transactionsare not active. Ssangyong factory (KRW 95 billion) andDAEWOO factory (KRW 100 billion) are among the largesttransactions of the year.In the retail market, the overall rent decreased, exceptin Myungdong, the most active retail district in Seoul.Myungdong benefited from a new supply of retail space withNoonsquare (23,869 SM) and from tourists visiting the area.The opening of Times Square shopping mall (370,000 SM)in Youndeungpo, is drawing attention to the district.A large scale urban redevelopment is under way in the CBD,and a new supply of large office buildings and a high-riseresidential complex are expected in two to three years.ContactNAI Taiwan+ 886 2 8770 6699Country DataArea (KM 2 )GDP Growth (%)GDP 2009 (US$ B)GDP/Capita (US$)1334.3-4.13%$357.34$15,373.34Taipei, the capital of Taiwan, has had the most rapid economicdevelopment in the country and has become a global hub forthe technology industry. Economic growth has reached anaverage of 2.11%. Taipei is the world’s number-one providerof notebook PCs, with 72% of the market share. Taipei is alsothe world’s leading provider of LCD monitors, with 68% ofthe market share and of chip foundry services, with 70% ofthe market share.The office inventory in the Taipei metropolitan area totals 7.12million SM with an average rental rate of NT $599/SM/month,and NT $709/SM/month for Class A office space. Vacancyrates have risen slightly to 13.92% from 13.80%.The dawn is approaching the Taipei office market after theglobal finance crisis. The success of the Cross-Strait Summithas revitalized the real estate market. Several major transactionsoccurred after Q1 2009, stimulated by the Summit,leading to increasing closer economic ties with China. Theoverall absorption was 28,007 SM in Q3 2009. The demandin the suburban office market remains steady and theabsorption rate has continued upward. The overall vacancyrate of Nangang Economy Trading Park Phase III went down16.34% year over year to 34.81%.The Taipei suburban area saw more major transactionscompared to Taipei downtown areas such as Nei-HuTechnology Park and Nangang Economy Trading Park. Theinflow of overseas capital reached to US $12.99 billionin Q2 2009, the highest ever recorded, according to thecentral bank. The increased inflow of foreign capital helpedboth the local financial and real estate markets in Q3 2009.The agreements on Financial MOU and ECFA betweenTaiwan and China encouraged Taiwanese corporations inChina to reinvest back in Taiwan and also allowed for certainforms of Chinese investments in companies on the island.Inflation Rate (%)2.6%Inflation Rate (%)-0.5%UnemploymentRate (%)3.77%UnemploymentRate (%)6.08%Interest Rate(%)2.0%Interest Rate(%)1.25%Population (Millions) 48.65Population (Millions) 23.244Seoul At A GlanceConversion: 1179.20 KRW = 1 US$ RENT/M 2 /YR US$ RENT/SF/YRLow High Low High VacancyCITY CENTER OFFICENew Construction (AAA)N/A N/A N/A N/A N/AClass A (Prime)Class B (Secondary)SUBURBAN OFFICEKRW 290,400 KRW 435,600KRW 200,400 KRW 290,400$ 22.88$ 15.79$$34.3222.883.0%4.2%New Construction (AAA)N/A N/A N/A N/A N/AClass A (Prime)KRW 144,000 KRW 217,800 $ 11.34 $ 17.16 4.5%Class B (Secondary)INDUSTRIALKRW 108,900 KRW 127,200 $ 8.58 $ 10.02 N/ABulk WarehouseManufacturingHigh Tech/R&DRETAILKRW 54,480 KRWN/AN/A72,600N/AN/A$ 4.29N/AN/A$ 5.72N/AN/A15.0%N/AN/ADowntownNeighborhood Service CentersKRW 4,800,000 KRW 500,000KRW 156,000 KRW 300,000$ 37.82$ 12.29$$39.3923.64N/AN/ACommunity Power CenterRegional MallsSolus Food StoresN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/ADEVELOPMENT LAND Low/M 2 High/M 2 Low/M 2 High/M 2Office in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidentialN/A N/A N/A N/AN/A N/A N/A N/AN/A N/A N/A N/AN/A N/A N/A N/AN/A N/A N/A N/AN/A N/A N/A N/ATaipei At A GlanceConversion: 32.3 TWD = 1 US$ RENT/M 2 /MO US$ RENT/SF/YRLow High Low High VacancyCITY CENTER OFFICENew Construction (AAA)Class A (Prime)TWDTWD756.00 TWD 1,059.00711.00 TWD 998.00$$26.0924.54$ 36.55$ 34.4545.2%14.0%Class B (Secondary)SUBURBAN OFFICETWD 499.00 TWD 635.00 $ 17.22 $ 21.92 13.9%New Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALTWDTWDTWD393.00 TWD 484.00303.00 TWD 454.00257.00 TWD 378.00$$$13.5610.468.87$ 16.71$ 15.67$ 13.0561.0%15.9%22.5%Bulk WarehouseManufacturingTWDTWD151.00 TWD 212.00136.00 TWD 197.00$$5.214.69$$7.326.8016.8%13.4%High Tech/R&DRETAILTWD 330.00 TWD 378.00 $ 11.39 $ 13.05 19.0%DowntownTWD 3,781.00 TWD 6,723.00 $ 130.50 $ 232.04 1.0%Neighborhood Service CentersCommunity Power CenterTWDTWD968.00 TWD 1,966.00378.00 TWD 678.00$$33.4113.05$ 67.86$ 23.405.9%1.9%Regional MallsTWD 1,573.00 TWD 3,267.00 $ 54.29 $ 112.76 2.4%Solus Food StoresN/A N/A N/A N/A N/ADEVELOPMENT LAND Low/M 2 High/M 2 Low/Acre High/AcreOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidentialN/A N/A N/A N/AN/A N/A N/A N/AN/A N/A N/A N/AN/A N/A N/A N/AN/A N/A N/A N/AN/A N/A N/A N/A2010 Global Market Report ■ www.naiglobal.com35

CanadaSECTION CONTENTSCalgary, Alberta, CanadaEdmonton, Alberta, CanadaVancouver, British Columbia, CanadaVictoria, British Columbia, CanadaHalifax, Nova Scotia, CanadaOttawa, Ontario, CanadaToronto, Ontario, CanadaMontréal, Quebec, CanadaRegina, Saskatchewan, Canada36

Calgary, Alberta, CanadaEdmonton, Alberta, CanadaContactNAI Commercial Calgary+1 403 214 2344Country DataAreaGDP Growth (%)GDP 2008 (US$ B)GDP/Capita (USD)Inflation Rate (%)9,200,000-2.48%$1,319.14$39,217.290.15%The global economic downturn continued to have a negativeimpact on the city of Calgary due to the influence the oil andgas industry has on our market. On top of that, the over builtdowntown office boom in Calgary has led to vacancy thatexceeds anything that we have experienced in the past.Downtown office leasing continues to be the major story inreal estate in Calgary. There is currently over 1.8 million SFof vacant sublease space and 1.3 million SF of head leasevacancy in the downtown core, with another 3.5 million SF ofnew space coming to the market in 2010. Companies arecontinuing to reduce space in order to cut costs. If the currenteconomic conditions continue, there is a potential for thesevacancy numbers to double by 2012.On the positive side, the industrial and retail markets haveremained relatively stable because they were not overbuilt.The industrial developers adapted quickly to the recessionand as a result, inventory growth was very low in 2009. Therewas continued strength in the sale of freestanding buildingsin 2009 as prices saw a slight decrease and interest ratesremained low.The investment market had reduced activity due to a shortageof top-quality, wel-priced products being offered for sale,which was not related to the weak economic conditions. Allsegments of the investment market are starting to show signsof new life. It is anticipated that positive recovery of thissegment will continue over the next 12 to 18 months.Although the downtown office leasing market is lookingbleak, investors still view Calgary as a relatively stronginvestment market. A prime example is the recent purchaseof a new $74 million office development, Stampede StationPhase One, by German Investors.ContactNAI Commercial Edmonton+1 780 436 7410Country DataAreaGDP Growth (%)GDP 2008 (US$ B)GDP/Capita (USD)Inflation Rate (%)9,200,000-2.48%$1,319.14$39,217.290.15%Edmonton and Northern Alberta weathered the economicstorm longer than most markets throughout Canada. Ofa provincial total of $240 billion in major projects proposed,currently under construction or recently completed, $189billion are slated for Northern Alberta. Oil and gasprojects make up 52.19% of this total. Throughout 2009, theinvestment market has seen a tightening of available creditand the creation of a vast disconnect between seller’sexpectations and buyer’s opinions of value.Even while the economy appears to be improving, credit andlending parameters remain tight from the effect of thesub-prime correction. Given these conditions, many ownersremain in a holding position and investment volumes aredown.With a total office inventory of 24,155,355 SF, vacanciesincreased to 6.45% in 2009 up from 4.01% in 2008. Officerents from the peak in 2008 have been in decline. The28-story, 618,000 SF Epcor Tower, still under construction,is now 70% committed. Redevelopment of the formerProfessional Building (240,000 SF) continues and theprovince has also announced a $356 million upgrade of theFederal Building which has been vacant since 1989.Edmonton’s retail inventory is reported at 25,438,598 SFwith a vacancy rate of 2.96% in 2009, down from 3.11% in2008. Despite challenging economic times, this segmentremains strong with the expansion of existing players andthe introduction of new entrants to the market.The total inventory of industrial space grew by 6.7% to88,289,785 SF in 2009. The overall vacancy in 2009 was1.92% compared to 1.30% in 2008. Despite such a lowvacancy rate, industrial activity has been down with thelargest vacancy increases being seen in the multi-baymarket. Given the economic news throughout 2009, tenants’expectations were that rents should be significantly reduced.Throughout the latter half of 2009, asking rents in varyingareas have moderated by about 10% with landlords offeringleasehold inducements in order to compete for lease deals.UnemploymentRate (%)8.33%UnemploymentRate (%)8.33%Interest Rate (%)0.25%Interest Rate (%)0.25%Population (Millions)33.637Population (Millions)33.637Calgary At A GlanceConversion .96 CDN = 1 US$ NET RENT/SF/YR US$ NET RENT/SF/YRLow High Low High VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power CenterRegional MallsSolus Food StoresCDN 32.00 CDN 42.00 $ 33.33 $ 43.75 7.8%CDN 24.00 CDN 28.00 $ 25.00 $ 29.17 9.2%CDN 14.00 CDN 24.00 $ 14.58 $ 25.00 13.7%CDN 23.00 CDN 28.00 $ 23.96 $ 29.17 6.3%CDN 20.00 CDN 25.00 $ 20.83 $ 26.04 24.6%CDN 13.00 CDN 20.00 $ 13.54 $ 20.83 12.6%CDN 4.75 CDN 7.00 $ 4.95 $ 7.29 5.7%CDN 5.00 CDN 8.50 $ 5.21 $ 8.85 4.0%CDN 7.50 CDN 14.00 $ 7.81 $ 14.58 2.4%CDN 25.00 CDN 95.00 $ 26.04 $ 98.96 3.1%CDN 23.00 CDN 30.00 $ 23.96 $ 31.25 3.5%CDN 26.00 CDN 35.00 $ 27.08 $ 36.46 2.1%CDN 60.00 CDN 150.00 $ 62.50 $ 156.25 3.1%N/A N/A N/A N/A N/ADEVELOPMENT LAND Low//Acre High/Acre Low/Acre High/AcreOffice in CBDCDN 35.00 CDN 250.00 $ 36.46 $ 260.42Land in Office ParksCDN 400,000 CDN 1,000,000 $ 416,666.67 $1,041,666.67Land in Industrial ParksCDN 400,000 CDN 600,000 $ 416,666.67 $ 625,000.00Office/Industrial Land - Non-park CDN 350,000 CDN 800,000 $ 364,583.33 $ 833,333.33Retail/Commercial LandCDN 600,000 CDN 1,600,000 $ 625,000.00 $1,666,666.67ResidentialCDN 50,000 CDN 600,000 $ 52,083.33 $ 625,000.00Edmonton At A GlanceConversion .96 CDN = 1 US$ NET RENT/SF/YR US$ NET RENT/SF/YRLow High Low High VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power CenterRegional MallsSolus Food StoresCDN 28.00 CDN 35.00 $ 29.17 $ 36.46 N/ACDN 25.00 CDN 32.00 $ 26.04 $ 33.33 6.5%CDN 15.00 CDN 25.00 $ 15.63 $ 26.04 6.5%CDN 23.00 CDN 28.00 $ 23.96 $ 29.17 6.5%CDN 18.00 CDN 22.00 $ 18.75 $ 22.92 6.5%CDN 11.00 CDN 18.00 $ 11.46 $ 18.75 6.5%CDN 5.00 CDN 11.50 $ 5.21 $ 11.98 1.9%CDN 5.00 CDN 13.00 $ 5.21 $ 13.54 1.9%CDN 5.00 CDN 13.00 $ 5.21 $ 13.54 1.9%CDN 18.00 CDN 37.00 $ 18.75 $ 38.54 4.6%CDN 16.00 CDN 32.00 $ 16.67 $ 33.33 2.8%CDN 24.00 CDN 35.00 $ 25.00 $ 36.46 2.6%CDN 30.00 CDN 125.00 $ 31.25 $ 130.21 3.4%N/A N/A N/A N/A N/ADEVELOPMENT LAND Low//Acre High/Acre Low/Acre High/AcreOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkN/AN/ACDN 200,000CDN 300,000CDNCDNN/AN/A650,000750,000N/AN/A$ 208,333.33 $$ 312,500.00 $N/AN/A677,083.33781,250.00Retail/Commercial LandCDN 350,000 CDN 1,000,000 $ 364,583.33 $1,041,666.67ResidentialCDN 85,000 CDN 1,000,000 $ 88,541.67 $1,041,666.672010 Global Market Report ■ www.naiglobal.com 37

Vancouver, British Columbia, CanadaVictoria, British Columbia, CanadaContactNAI CommercialVancouver+1 604 691 6643Country DataAreaGDP Growth (%)GDP 2008 (US$ B)GDP/Capita (USD)Inflation Rate (%)9,200,000-2.48%$1,319.14$39,217.290.15%Vancouver is the largest city in British Columbia and the thirdlargest in Canada. Metropolitan Vancouver is home to2.4 million people and is one of the largest ports on NorthAmerica’s west coast. Vancouver is set to host the 2010Winter Olympics and expects 2.5% growth in the regionaleconomy for 2010.Overall the region has fared better than most during 2009.The office market in the CBD has an overall vacancy rateof 7.0%, and absorption is expected to be negative untilmid-2010. In recent years, demand for high-rise residentialdevelopment sites in the urban core has led to reducedoffice space inventory with little new office product comingto market in 2010-2011. The office markets in Richmond,Burnaby and Surrey have rebounded as tenants look to thesuburbs for space.The industrial market continues to outperform most otherCanadian industrial markets due to insufficient supply, withaverage vacancy rates of approximately 4%. Land pricesare expected to be stable in 2010, ranging betweenC $750,000 and C $1.3 million/acre. Overall absorptionremains positive. Rental rates average C $8.00/SF net. Theretail market is under increasing pressure due to slowingconsumer spending. Steady population growth especially inthe CBD and near the rapid transit lines will keep this sectoractive in 2010. Market rents will remain fairly stable as well.The investment market is recovering slowly. After five quartersof either flat or declining levels of investment activity, theGreater Vancouver property market showed signs of recoveryin Q3 2009.The multifamily market is particularly active with cap ratesof approximately 5.0%. Cap rates for most other producttypes range between 6.5% and 8.0% in the Vancouver regionand between 8.0% and 10% in secondary markets outsidethe Vancouver area depending on product type andlocation.ContactNAI Commercial Victoria+1 250 381 2265Country DataAreaGDP Growth (%)GDP 2008 (US$ B)GDP/Capita (USD)Inflation Rate (%)9,200,000-2.48%$1,319.14$39,217.290.15%Victoria, British Columbia, is the capital city of the Provinceof British Columbia, which employs some 10,000 people inthe downtown area. It has five primary economic drivers thatinclude the provincial government, the University of Victoria,high technology, tourism and the Department of NationalDefense, which operates Canada’s largest naval base onthe Pacific Coast.Since the fall of 2008, the provincial government has seena decline in revenue resulting in spending cuts. Tourism hasbeen damaged by a drop in both US and internationalvisitors. A relatively healthy local economy and low interestrates have resulted in a robust housing market that has seenincreases in sales volumes and strengthening of prices. Themedian single family house price is $500,000.The industrial market is challenging for buyers and tenantswith a very low vacancy rate of less than 1% and limitednew supply. Rents for industrial space have remained stable.Lack of capacity in existing industrial areas in the Victoriaarea continues to be a problem.The office market has seen an increase in vacancy rates. Anotable impact on the downtown office market has been thedownsizing of the provincial government as it struggles withits budget deficit. A new mall under construction anchoredby Wal-Mart includes an office component of 200,000 SF ofspace. It will be interesting to see how readily the marketabsorbs this new product in the current economic environment.The retail market in the downtown core continues to showweakness due to a diminished tourism sector. The 8%vacancy rate is expected to hold. Regional and communityretail centers in Victoria have a 2-3% vacancy rate withlease rates stable.Investment sales continue to be limited by a lack of product.An abundance of qualified purchasers and the limited numberof investment properties have resulted in capitalization ratesremaining resilient to the recessionary pressures. Prime commercialproperty capitalization rates are 6-7%. Residentialapartment capitalization rates are around 5%.UnemploymentRate (%)8.33%UnemploymentRate (%)8.33%Interest Rate (%)0.25%Interest Rate (%)0.25%Population (Millions)33.637Population (Millions)33.637Vancouver At A GlanceConversion .96 CDN = 1 US$ NET RENT/SF/YR US$ NET RENT/SF/YRLow High Low High VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power CenterRegional MallsSolus Food StoresCDN 30.00 CDN 40.00 $ 31.25 $ 41.67 5.0%CDN 28.00 CDN 38.00 $ 29.17 $ 39.58 6.0%CDN 25.00 CDN 33.00 $ 26.04 $ 34.38 8.0%CDN 29.00 CDN 35.00 $ 30.21 $ 36.46 8.0%CDN 25.00 CDN 32.00 $ 30.21 $ 36.46 7.5%CDN 20.00 CDN 25.00 $ 20.83 $ 26.04 12.0%CDN 6.00 CDN 9.00 $ 6.25 $ 9.38 4.0%CDN 6.50 CDN 10.00 $ 6.77 $ 10.42 4.0%CDN 8.50 CDN 14.00 $ 8.85 $ 14.58 4.5%CDN 105.00 CDN 180.00 $109.38 $187.50 4.0%CDN 30.00 CDN 60.00 $ 31.25 $ 62.50 4.0%CDN 30.00 CDN 40.00 $ 31.25 $ 41.67 4.5%CDN 25.00 CDN 40.00 $ 26.04 $ 41.67 4.5%N/A N/A N/A N/A N/ADEVELOPMENT LAND Low//Acre High/Acre Low/Acre High/AcreOffice in CBDCDN 75.00 CDN 135.00 $ 78.13 $ 140.63Land in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidentialCDN 900,000CDN 850,000CDN 750,000CDN 750,000CDN 750,000CDN 1,300,000CDN 1,300,000CDN 1,200,000CDN 1,500,000CDN 1,500,000$$$$$937,500.00 $ 1,354,166.67885,416.67 $ 1,354,166.67781,250.00 $ 1,250,000.00781,250.00 $ 1,562,500.00781,250.00 $ 1,562,500.00Victoria At A GlanceConversion .96 CDN = 1 US$ NET RENT/SF/YR US$ NET RENT/SF/YRLow High Low High VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power CenterRegional MallsSolus Food StoresCDN 42.00 CDN 48.00 $ 43.75 $ 50.00 N/ACDN 36.00 CDN 40.00 $ 37.50 $ 41.67 1.8%CDN 30.00 CDN 34.00 $ 31.25 $ 35.42 5.0%CDN 38.00 CDN 42.00 $ 39.58 $ 43.75 N/ACDN 32.00 CDN 36.00 $ 33.33 $ 37.50 7.0%CDN 26.00 CDN 30.00 $ 27.08 $ 31.25 10.0%CDN 10.00 CDN 12.00 $ 10.42 $ 12.50 1.0%CDN 12.00 CDN 14.00 $ 12.50 $ 14.58 1.0%CDN 12.00 CDN 18.00 $ 12.50 $ 18.75 1.0%CDN 38.00 CDN 90.00 $ 39.58 $ 93.75 9.0%CDN 26.00 CDN 32.00 $ 27.08 $ 33.33 5.0%CDN 24.00 CDN 28.00 $ 25.00 $ 29.17 2.0%CDN 50.00 CDN 70.00 $ 52.08 $ 72.92 3.0%N/A N/A N/A N/A N/ADEVELOPMENT LAND Low//Acre High/Acre Low/Acre High/AcreOffice in CBDCDN 1,500,000 CDN 2,000,000 $1,562,500.00 $ 2,083,333.33Land in Office ParksCDN 600,000 CDN 1,000,000 $ 625,000.00 $ 1,041,666.67Land in Industrial ParksOffice/Industrial Land - Non-parkCDNCDN500,000 CDN600,000 CDN750,000900,000$$520,833.33625,000.00$$781,250.00937,500.00Retail/Commercial LandCDN 1,000,000 CDN 1,500,000 $1,041,666.67 $ 1,562,500.00ResidentialCDN 400,000 CDN 1,000,000 $ 416,666.67 $ 1,041,666.672010 Global Market Report ■ www.naiglobal.com 38

Halifax, Nova Scotia, CanadaOttawa, Ontario, CanadaContactNAI Turner Drake& Partners Ltd.+1 902 429 1811Country DataAreaGDP Growth (%)GDP 2008 (US$ B)GDP/Capita (USD)Inflation Rate (%)UnemploymentRate (%)Interest Rate (%)9,200,000-2.48%$1,319.14$39,217.290.15%8.33%0.25%Population (Millions) 33.637Halifax Regional Municipality (HRM) is the economic hub ofAtlantic Canada and appears to have weathered the currentglobal financial crisis better than other parts of the country.Perhaps this is because HRM has the Canadian Navy’s EastCoast base, is the location of many federal governmentoffices and six universities, and as a result is home to a largeconcentration of educational, medical and research facilities.The vacancy rate for all classes of office buildings is up thisyear to 7.44%, an overall increase of 1.2%. The currentvacancy rate for Class A space is 4.97%, Class B 8.38%and Class C 7.17%. Although several projects have beenapproved for the CBD, rental rates need to be at least$25/SF net to make construction worthwhile. Class A rentscurrently are at $18/SF. However, office developmentcontinues in the suburban market where land is cheaper.Construction has recently commenced on a 15-acre siteknown as The Wright and Burnside Business Campus. It willinclude six office buildings totaling 400,000 SF.Warehouse vacancy is up in HRM to 8.14% overall and netrental rates have remained virtually unchanged from lastyear. Burnside/City of The Lakes is the largest of HRM’sindustrial parks and has a 4.91% vacancy. There are severalnew buildings under construction for owner/occupiers inthis Park.On the retail front, Dartmouth Crossing continues to expandits retail park. Costco recently opened its second HRMlocation here and Hampton Inn and Suites welcomed its firstguests earlier this year. Bedford Commons, also known asNorthGate Power Centre, a retail project, is under construction.Wal-Mart, Canadian Tire, Future Shop and other nationalretailers are due to occupy space in this development. Thereis a shortage of available investment product and the markethas been slow.Council passed “HRM By Design” a blueprint for the futureof Downtown Halifax. The plan is a balance between heritagepreservation and growth. Plans were unveiled recently for anew Trade and Convention Centre in the Halifax downtown.Also in the works is a new commercial/residential subdivisionin Bedford West.ContactNAI Commercial Ottawa+1 613 230 2100Country DataAreaGDP Growth (%)GDP 2008 (US$ B)GDP/Capita (USD)Inflation Rate (%)UnemploymentRate (%)Interest Rate (%)9,200,000-2.48%$1,319.14$39,217.290.15%8.33%0.25%Population (Millions) 33.637The Ottawa Federal Government has been hiring steadily, withan expectation that hiring will be reevaluated based on theeconomic setback of 2009. The high-tech sector continues tostrengthen; sector employment numbers are now exceedingthe exaggerated pre-high tech bust of 2000. Although thepublic sector and high-tech sectors are still growing soundly,this growth is being offset by downturns in other sectorsaffected by the global recession. Employment is expectedto remain stable.Growth in the local economy is expected to decline 0.5%this year before rebounding 3.1% in 2010. The industrialmarket performed well with inventory exceeding 22 millionSF. The overall vacancy rate, excluding Kanata, dropped tobelow 3.9%. With limited new construction, 2010 vacancyshould decline further and rental rates are expected toincrease. Larger industrial building space blocks are limited,rental rates have increased and demand is strong for highqualityhigh-ceiling modern industrial space.Office market inventory exceeds 47 million SF, with over 2.5million SF of vacant space; over half of this vacancy is inKanata (western suburban market). Vacancy rates elsewhereare in decline. Expectations in Kanata indicate a softening ofthe market with multiple companies, including Nortel’sdemise, offering space in the sublet market. In Ottawa core,a new 370,000 SF building was constructed by Ottawadeveloper Minto Group. The building is over 70% occupiedwith the remainder expected to be occupied by the Federalgovernment. Export Development Corporation will relocatewith a new high-rise tower of 535,000 SF under constructionby Broccolini in the core.The local retail market sustained a vacancy rate of 2.7%with an increase of 0.03% in the previous six months.Effects of the unanticipated Canadian dollar strengthening,and concerns over economic downturn, will not be reflectedin this sector. Vacancy rental rates continued to escalatewith rates averaging $19.75 SF. New retail construction hasadopted a “wait and see” approach. There continues to bedevelopment of small neighborhood infill projects servingthe rapidly growing suburbs.Long-term investors are keeping a large percentage of capitalon the sidelines. Substantial assets offered for sale arebeginning to receive attention. Capitalization rates increasedslightly. Offshore and international investors have expressedcontinued interest in low-risk products. It has yet to be seenif the extraordinary difficulty experienced in the capital marketswill alter commercial real estate markets in dramatic,unforeseen ways.Halifax At A GlanceConversion: .96 CDN = 1 US$ NET RENT/SF/YR US$ NET RENT/SF/YRLow High Low High VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALN/ACDN 31.22CDN 18.00CDN 26.50CDN 20.29CDN 13.50N/ACDN 34.89CDN 29.04CDN 26.50CDN 30.60CDN 29.75N/A$ 32.52$ 18.75$ 27.60$ 21.14$ 14.06$$$$$N/A36.3430.2527.6031.8830.99N/A2.8%3.4%32.0%7.5%12.4%Bulk WarehouseManufacturingHigh Tech/R&DRETAILCDN 6.55CDN 5.00CDN 7.65CDN 15.00CDN 16.00CDN 23.00$$$6.827.977.97$$$15.6323.9623.9610.7%6.5%6.7%DowntownNeighborhood Service CentersCommunity Power CenterRegional MallsSolus Food StoresDEVELOPMENT LANDCDN 35.00CDN 22.00CDN 28.00CDN 65.00N/ALow/AcreCDN 65.00CDN 28.00CDN 31.00CDN 75.00N/AHigh/Acre$ 36.46$ 22.92$ 29.17$ 67.71N/ALow/Acre$$$$67.7129.1732.2978.13N/AHigh/AcreN/AN/AN/AN/AN/AOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidentialN/A N/A N/A N/ACDN 239,580 CDN 326,700 $ 249,562.50 $ 340,312.50CDN 163,350 CDN 239,580 $ 170,156.25 $ 249,562.50CDN 270,115 CDN 521,413 $ 281,369.79 $ 543,138.54CDN 270,115 CDN 544,500 $ 281,369.79 $ 567,187.50CDN 206,358 CDN 317,117 $ 214,956.25 $ 330,330.21Ottawa At A GlanceConversion: 94 CDN = 1 US$ NET RENT/SF/YR US$ NET RENT/SF/YRLow High Low High VacancyDOWNTOWN OFFICENew Construction (AAA)N/A N/A N/A N/A N/AClass A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)CDN 30.00CDN 18.00N/ACDN 14.00CDNCDNCDN35.0025.00N/A15.00$ 31.91$ 19.15N/A$ 14.89$$$37.2326.60N/A15.962.9%5.8%N/A7.6%Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILCDNCDNCDNCDN9.004.007.008.00CDNCDNCDNCDN12.006.0011.0013.00$$$$9.574.267.458.51$$$$12.776.3811.7013.837.6%5.0%5.0%18.0%DowntownCDN 50.00 CDN 195.00 $ 53.19 $ 207.45 4.9%Neighborhood Service CentersCommunity Power CenterRegional MallsSolus Food StoresCDN 20.00CDN 35.00CDN 30.00N/ACDNCDNCDN35.0065.0068.00N/A$ 21.28$ 37.23$ 37.23N/A$$$37.2369.1569.15N/A4.3%1.2%1.0%N/ADEVELOPMENT LAND Low/Acre High/Acre Low/Acre High/AcreOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidentialCDN 17,000,000 CDN 17,000,000 $ 18,085,106.38 $ 18,085,106.38CDN 350,000 CDN 400,000 $ 372,340.43 $ 425,531.91CDN 275,000 CDN 375,000 $ 292,553.19 $ 398,936.17N/A N/A N/A N/ACDN 350,000 CDN 2,000,000 $ 372,340.43 $ 2,127,659.57CDN 375,000 CDN 3,000,000 $ 372,340.43 $ 2,127,659.572010 Global Market Report ■ www.naiglobal.com 39

Toronto, Ontario, CanadaMontreal, Quebec, CanadaContactNAI Ashlar Urban+1 416 205 9222Country DataAreaGDP Growth (%)GDP 2009 (US$ B)GDP/Capita (USD)Inflation Rate (%)9,200,000-2.48%$1,319.14$39,217.290.15%Toronto is North America’s fifth largest city and Canada’slargest economic center. With a population of approximately5.5 million people, Toronto is home to one-sixth of Canada’sworkforce. As Canada’s center for commerce, Toronto isthe hub of the banking and investment community andalso acts as the gateway for other major industries inCanada including, medical, film, tourism, fashion, food andinformation technology.Toronto’s downtown office market fundamentals continueto reflect the current economic condition with the availabilityrate remaining at approximately 10%, up from 6.9% in2008. Of note, the downtown financial core will see adramatic increase in inventory with the addition of just over3 million SF expected to come online by the end of 2009.These new completions, which include the Bay AdelaideCentre, Maple Leaf Square, RBC Centre and the Telus Tower,will consist primarily of tenants who have relocated fromwithin the downtown core.With the availability of new back-fill space, we expect anincrease in the vacancy rate in the downtown financial core.Not withstanding the softening of net rents in the financialcore, the downtown east and west markets have fared comparativelywell as lower occupancy costs and strong demandhave helped keep vacancy rates stable.Toronto has remained very forward thinking in terms of itsenvironmental standards. All major new developments scheduledfor the next 24 months have been registered for LEEDcertification, and smaller developments are starting to bringa new generation of “green buildings” to the market. Newenergy alternatives such as deep lake water cooling, havebeen embraced by some of the major new developments(Telus Tower and RBC Centre) in Toronto. A chief objective ofthe city of Toronto is to have 80% of the downtown areaserviced by Enwave by 2050.ContactNAI CommercialMontreal+1 514 866 3333Country DataAreaGDP Growth (%)GDP 2009 (US$ B)GDP/Capita (USD)Inflation Rate (%)9,200,000-2.48%$1,319.14$39,217.290.15%Enjoying a strategic position within North America, Montrealis a genuine international business center, one that forms abridge between the economy of the European Union andthat of the US. Montreal has not suffered excessively fromthe worldwide recession that dominated the market in 2009.Classed among the 20 largest cities in North America, itappears that Montreal is a city that has been able to weatherthe crisis without incurring too much damage.The city of Montreal is ranked second in North America withrespect to jobs related to the design and production of videogames. The city is also a major center for corporationsoperating in the aerospace, pharmaceutical and biotechnologyfields, and a leader in electronic commerce, multimediaproduction and information technology. The film industryalso continues to experience interesting growth in Montreal.The market for office space in the greater Montreal arearepresents more than 21% of the entire Canadian market.The total inventory in this market is more than 72 millionSF, 60% of which is in the downtown core. The overall officevacancy rate is 8%. No large projects have been startedduring this period, but in both Laval and the South Shore,situated adjacent to Montreal, several building projects havebeen developed.The hotel sector in Montreal continues to develop, withseveral new projects under way. There is approximately326.5 million SF of leasable industrial space in the greaterMontreal area. The vacancy rate in the industrial sector is7%. The majority of unoccupied space is found in olderbuildings with lower headroom, with more recent buildingsoffering greater headroom. However, industrial developmenthas been on the slow side, keeping demand steady with theexpectation of an improvement in the world economy in 2010.Montreal has made its mark this year by implementing itsBIXI program, a bicycle transportation system offering over6,000 bicycles at some 400 locations in the downtown coreand adjacent suburbs. This innovative project is now beingexported to other major cities such as London and Boston.UnemploymentRate (%)8.33%UnemploymentRate (%)8.33%Interest Rate (%)0.25%Interest Rate (%)0.25%Population (Millions)33.637Population (Millions)33.637Toronto At A GlanceConversion: .96 CDN = 1 US$ NET RENT/SF/YR US$ NET RENT/SF/YRLow High Low High VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALCDN 28.00CDN 25.00CDN 15.00CDN 12.00N/AN/ACDNCDNCDNCDN40.0032.0025.0016.00N/AN/A$ 29.17$ 26.04$ 15.63$ 12.50N/AN/A$$$$41.6733.3326.0416.67N/AN/A9.7%9.8%7.5%9.0%N/AN/ABulk WarehouseManufacturingHigh Tech/R&DRETAILCDN 4.00N/AN/ACDN 6.50N/AN/A$ 4.17N/AN/A$ 6.77N/AN/A9.0%N/AN/ADowntownNeighborhood Service CentersCommunity Power CenterRegional MallsSolus Food StoresCDN 30.00N/AN/AN/AN/ACDN 130.00N/AN/AN/AN/A$ 31.25N/AN/AN/AN/A$ 135.42N/AN/AN/AN/A10.0%N/AN/AN/AN/ADEVELOPMENT LAND Low/Acre High/Acre Low/Acre High/AcreOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidentialN/A N/A N/A N/AN/A N/A N/A N/AN/A N/A N/A N/AN/A N/A N/A N/AN/A N/A N/A N/AN/A N/A N/A N/AMontreal At A GlanceConversion: .96 CDN = 1 US$ NET RENT/SF/YR US$ NET RENT/SF/YRLow High Low High VacancyDOWNTOWN OFFICENew Construction (AAA)CDN 28.50 CDN 55.00 $ 29.69 $ 57.29 6.8%Class A (Prime)CDN 35.00 CDN 42.00 $ 36.46 $ 43.75 7.2%Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALCDN 12.00N/ACDN 25.00CDN 15.00CDNCDNCDN20.00N/A31.0020.00$ 12.50N/A$ 26.04$ 15.63$$$20.83N/A32.2920.837.6%11.0%11.5%N/ABulk WarehouseManufacturingHigh Tech/R&DRETAILCDNCDNCDN4.754.255.75CDN 6.50CDN 6.00CDN 7.25$$$4.954.435.99$$$6.776.257.556.0%6.5%7.0%DowntownCDN 45.00 CDN 200.00 $ 46.88 $ 208.33 5.0%Neighborhood Service CentersCommunity Power CenterRegional MallsSolus Food StoresCDN 13.00CDN 22.00CDN 30.00N/ACDNCDNCDN25.0032.0055.00N/A$ 13.54$ 22.92$ 31.25N/A$$$26.0433.3357.29N/A6.5%3.5%6.0%N/ADEVELOPMENT LAND Low/Acre High/Acre Low/Acre High/AcreOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidentialCDN 6.50 CDN 15.00 $ 6.77 $ 15.63CDN 5.50 CDN 15.00 $ 5.73 $ 15.63CDN 4.50 CDN 14.00 $ 4.69 $ 14.58CDN 4.50 CDN 15.00 $ 4.69 $ 15.63CDN 8.00 CDN 15.00 $ 8.33 $ 15.63CDN 6.00 CDN 28.00 $ 6.25 $ 29.172010 Global Market Report ■ www.naiglobal.com 40

Regina, Saskatchewan, CanadaContactNAI Commercial(SASK)+1 306 525 3344Country DataAreaGDP Growth (%)GDP 2008 (US$ B)GDP/Capita (USD)Inflation Rate (%)9,200,000-2.48%$1,319.14$39,217.290.15%The Saskatchewan market appears to be an "oasis" amid ageneral economic downturn. After years of being a "have not"province it is apparent that it is Saskatchewan's time in thesun. Saskatchewan has abundant resources and a strongeconomy. Agriculture, oil, gas, potash, uranium, diamonds,gold, and coal have diversified the economy. Unemploymentis below 5% and is predicted to remain steady. The twolargest cities, Regina and Saskatoon, with a combinedpopulation of 500,000, enjoy a diversified economy.After 10 years of expansion on the east side of Regina, andfive years’ growth in the northwest, look for the focus in theretail market to shift to Harbour Landing (800,000 SF)in the southwest corner of Regina. Rental rates for all otherareas are expected to remain constant in 2010. TheSaskatchewan investment market remains strong. Whileinvestor appetite globally has waned, the local Saskatchewanmarket has investor appeal. Capitalization rates rangebetween 8% -9% for well-located, well-tenanted projects.The vacancy factor for industrial space is at an all time low.Lack of construction and low supply will invariably continueto push rental rates up. Industrial rates are in the range ofUS $8.00-$9.00 for existing projects and US $13.00-$15.00 for new construction. Land remains in good supplyat US $225,000-$250,000/acre.The Regina office market witnessed a reduction of netabsorption to 80,000 SF in early 2009. Vacancy is at anoverall rate of 1.73%. Lease rates will continue upward aswe emerge from the recession. Pent up demand before therecession will remain and no new projects are expected for2010. Interest in agricultural land in Saskatchewan has risensteadily for the past three years. Rising commodity priceshave led to increased demand for rural land. Values areexpected to improve in 2010.To summarize, the Saskatchewan market remains strongand is predicted to experience continued steady growth into2010. Look for rates in all sectors to continue upward assteady demand, low vacancy rates, and a lack of newproduct will naturally force rates upward.UnemploymentRate (%)8.33%Interest Rate (%)0.25%Population (Millions)33.637Regina At A GlanceConversion .97 CDN = 1 US$ NET RENT/SF/YR US$ NET RENT/SF/YRLow High Low High VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power CenterRegional MallsSolus Food StoresCDN $ 35.00 CDN $ 40.00 $ 3.35 $ 3.83 N/ACDN $ 18.00 CDN $ 22.00 $ 1.72 $ 2.11 N/ACDN $ 12.00 CDN $ 14.00 $ 1.15 $ 1.34 N/AN/A N/A N/A N/A N/AN/A N/A N/A N/A N/AN/A N/A N/A N/A N/ACDN$ 6.00 CDN $ 8.00 $ 0.57 $ 0.77 N/AN/A N/A N/A N/A N/AN/A N/A N/A N/A N/ACDN $ 20.00 CDN $ 25.00 $ 1.92 $ 2.39 N/ACDN $ 12.00 CDN $ 15.00 $ 1.15 $ 1.44 N/AN/A N/A N/A N/A N/ACDN $ 35.00 CDN $ 50.00 $ 3.35 $ 4.79 N/AN/A N/A N/A N/A N/ADEVELOPMENT LAND Low//Acre High/Acre Low/Acre High/AcreOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidentialCDN $ 50.00N/ACDN $ 4.00N/ACDN $ 12.00N/ACDN $ 75.00N/ACDN $ 6.00N/ACDN $ 25.00N/A$ 51.55N/A$ 4.12N/A$ 12.37N/A$ 77.32N/A$ 6.19N/A$ 25.77N/A41 2010 Global Market Report ■ www.naiglobal.com 41

EMEASECTION CONTENTSVienna, AustriaThe Baltics (Latvia/Estonia/Lithuania)Sofia, BulgariaPrague, Czech RepublicCopenhagen, DenmarkFinlandParis - Ile de France (Paris Region), FranceFrankfurt am Main, GermanyAthens GreeceIcelandTel Aviv, IsraelAlmaty, KazakhstanKuwaitOslo, NorwayDoha City, QatarBucharest, RomaniaMoscow, Russian FederationSt. Petersburg, Russian FederationBelgrade, SerbiaJohannesburg, South AfricaMadrid, SpainStockholm, SwedenGeneva, SwitzerlandZurich, SwitzerlandKiev, UkraineIstanbul, TurkeyLondon, England, United Kingdom42 42

Vienna, AustriaThe Baltics (Latvia/Estonia/Lithuania)ContactNAI Otto Immobilien+43 1 512 77 77Country DataArea (KM 2 )GDP Growth (%)GDP 2009 (US$ B)GDP/Capita (US$)Inflation Rate (%)UnemploymentRate (%)Interest Rate(%)1334.3-3.82%$374.42$45,090.490.47%5.27%1.00%Population (Millions) 8.304Vienna is the capital of Austria and has a population of 1.7million. The city has historically been a focus for commercebetween East and the West. Growth in the Austrian economyis estimated at -3.4% for 2009 with inflation at 0.5%. Theunemployment rate was 4.4% in July 2009, compared to9% for the EU 27.The new supply of office space was approximately 240,000SM in 2008. For 2009 about 220,000 SM are estimated.Demand in the office space rental market has slackened.Nevertheless, with approximately 280,000 SM of activity,the leasing performance will level off at a respectable valuedue to numerous relocations and location consolidations.Annual leasing activity totaled approximately 340,000SM during the record years of 2005-2008.In recent months, increased space demand has come fromthe trade, financial and leisure sectors. Top rents as well asthe average rent are stable at €24.00, respectively€12.10/SM/month. The vacancy rate remains at 5.7%.Demand for industrial and warehousing facilities has weakenedsignificantly. Rents have softened to around€5.00/SM/month. Owner-occupation is still a dominantfeature of the market. Retail sales in Austria continued tobe strong during the first six months of 2009. Prime rentsfor unit shops achieve approximately €2,400/SM/year.Within the framework of Vienna’s main railway stations a lotof retail space is going to enter the market duringthe next few years. Investment market demand, as well asthe requirements concerning property quality and yields,have risen (as much as 1% beyond the top segment). Pricingcontinues to be difficult for both sides. The massivepurchase price reductions some expected have not materializeddue to market participants’ wait and see stance.In recent months, the commercial properties changingownership have been mostly special-use properties likegarages and supermarkets, rather than typical offices.Nowadays a trend to less risky real estate investments isclearly noticeable on the demand side.ContactNAI Baltics+371 6731 2396Country DataArea (KM 2 )GDP Growth (%)GDP 2009 (US$ B)GDP/Capita (US$)Inflation Rate (%)UnemploymentRate (%)Interest Rate(%)17501515.5%$83.70$11,9002.5%14.7%7.5%Population (Millions) 7.0Until recently, the Baltic States have been among the fastestgrowing economies in Europe. However, the unbalancedgrowth from 2005 through 2008, influenced by rapidlygrowing domestic demand and availability of advantageouscredit resources, is the primary cause for the current crisisin the three Baltic countries. The economic activitiesdecreased most significantly in trade, manufacturing andconstruction sectors. With the decline of domestic demand,the consumer price inflation has been gradually decreasing.The office market faces a severe slowdown due to lack offinancing and a decrease in demand. Vacancy ratescontinue to rise. Vacancy in Class A offices is about 10% onaverage and 10.5% to 27% in Class B offices. Landlordsare offering attractive incentives and discounted rentals.Compared to 2008, the average rental decrease was 25%for Class B and 15% for Class A offices.Over the last few years more than 15 shopping centersopened or were significantly expanded in the Baltic States.However, the large scale retail developments have beentemporarily postponed. The retail space market has changedfrom a landlords’ market to a tenants’ market, and manyinternational companies have chosen to enter the BalticStates retail market under the new preferential conditions.One major advantage of the three Baltic countries is strategiclocation at the crossroads between Eastern and WesternEurope, hence new entrant international companies areseeing the benefits of setting up manufacturing or logisticsactivities in the Baltic States. Due to current economicconditions, rental rates for industrial/warehouse facilitieshave shown instability and a major decrease.Investment volumes were diminished in 2009, mostly due tolimitations on real estate financing imposed by the Scandinavianbanks, which play a leading role in the Baltics, aswell as the influence of the sub-prime mortgage crisis on theEuropean markets.Experiencing a current downturn, the Baltic real estatemarket provides excellent possibilities to attain high returnsand future prospects of capital appreciation when themarket stabilizes. The Baltic States will remain an interestingarena for investors and professional developers due to itsexcellent strategic location between Eastern and WesternEurope.Vienna At A GlanceConversion: 0.70 € = 1 US$ RENT/M 2 /YR US$ RENT/SF/YRLow High Low High VacancyCITY CENTER OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIAL€€€€€€156.00156.00131.00140.00131.0090.00€€€€€€288.00288.00156.00156.00156.00140.00$ 20.70$ 20.70$ 17.39$ 18.58$ 17.39$ 11.94$ 38.22$ 38.22$ 20.70$ 20.70$ 20.70$ 18.585.7%5.7%5.7%5.7%5.7%5.7%Bulk WarehouseManufacturing€€30.0050.00€€60.0070.00$$3.986.64$$7.969.299.0%9.0%High Tech/R&DRETAIL€ 60.00 € 78.00 $ 7.96 $ 10.35 8.0%City Center€ 872.00 € 2,400.00 $115.73 $ 318.52 7.5%Neighborhood Service Centers € 260.00 € 430.00 $ 34.51 $ 57.07 7.5%Community Power Center (Big Box)Regional Malls€ 70.00N/A€ 87.00N/A$ 9.29N/A$ 11.55N/A7.5%N/ASolus Food Stores€ 62.00 € 70.00 $ 8.23 $ 9.29 9.0%DEVELOPMENT LAND Low/M 2 High/M 2 Low/SF High/SFOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidential€ 4,360.00 € 13,081.00 $ 578.65 $ 1,736.08€ 2,100.00 € 3,200.00 $ 278.71 $ 424.70€ 2,000.00 € 3,052.00 $ 265.44 $ 405.05€ 2,180.00 € 3,488.00 $ 289.32 $ 462.92€ 2,000.00 € 3,052.00 $ 265.44 $ 405.05€ 2,620.00 € 8,000.00 $ 347.72 $ 1,061.74The Baltics At A GlanceConversion: 0.6664 Euro = 1 US$ RENT/M 2 /YR US$ RENT/SF/YRLow High Low High VacancyCITY CENTER OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILCity CenterRetail Units in ParksCommunity Power Center (Big Box)Regional Shopping Centers/MallsSolus Food Stores€€€€€€€€€108.00120.0084.0084.00N/A60.0042.00N/AN/A216.0096.0060.00N/AN/A€€€€€€€€€144.00180.00108.00120.00N/A84.0072.00N/AN/A540.00144.00240.00N/AN/A$$$$$$$$$15.0616.7311.7111.71N/A8.365.86N/AN/A30.1113.388.36N/AN/A$$$$$$$$$20.0725.0915.0616.73N/A11.7110.04N/AN/A75.2820.0733.46N/AN/A15.0%10.5%18.0%25.0%N/A27.0%20.0%N/AN/A3.0%8.0%1.0%N/AN/ADEVELOPMENT LAND Low/M 2 High/M 2 Low/SF High/SFOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidential€ 250.00 € 1,000.00 $34.85 $139.41N/A N/A N/A N/A€ 20.00 € 50.00 $ 2.79 $ 6.97€ 10.00 € 50.00 $ 1.39 $ 6.97€ 20.00 € 200.00 $ 2.79 $ 27.88€ 10.00 € 170.00 $ 1.39 $ 23.702010 Global Market Report ■ www.naiglobal.com 43

Sofia, BulgariaPrague, Czech RepublicContactNAI ProCon+359 2 943 43 75Country DataArea (KM 2 )GDP Growth (%)GDP 2009 (US$ B)GDP/Capita (US$)Inflation Rate (%)UnemploymentRate (%)1334.3-6.50%$44.78$5,916.220.61%8.23%The downturn was first felt in October 2008. Deterioratingdomestic demand has led to a contraction of Bulgaria’seconomy by 5.8-7.1% in Q2 2009. The country's economydeteriorated significantly throughout 2009. Investment volumeis off 60% compared to 2008. Most commercial developmentplans have either been stopped or are on hold.The market was characterized by weakened domesticdemand in comparison to the previous year. Rising exportswill help offset that weakened demand, but expectations arefor continued negative GDP. Mostly because the adjustmentprocess is still going on and because the currency is fixed,most of this adjustment takes place at a slower pace. Recentdata indicates that inflation is heading to a negative territorywhich, in turn, is also hurting the GDP growth. Bulgariareported a monthly deflation of non-EU harmonizedconsumer prices for July, for a third month in a row. We areseeing a further deterioration in domestic demand, which isthe key factor for the deepening erosion of GDP. At the sametime, net exports should be contributing positively but thatwill not be enough to offset the slump of the domesticdemand component.Plans to start development of nine industrial parks are onhold. Most of the transactions are done by local players. Theonly property transactions that are continuing are the seasonaland holiday properties along the Black Sea coast, buteven those are moving along at a much slower pace. Bankshave gradually started to open up for credit but at muchhigher interest rates than a year ago.The office market has remained the most developedcommercial property sector in Bulgaria, primarily concentratedin Sofia. Vacancy rates are in the range of 13.5% withvacancy rates of 19.6% in the suburban areas. Four newshopping malls opened and reached 220,000 SM. The firstCarrefour hypermarket opened n Burgas.ContactNAI MIPA+420 224 818 677Country Data*Area (KM 2 )GDP Growth (%)GDP 2009 (US$ B)GDP/Capita (US$)Inflation Rate (%)UnemploymentRate (%)1334.3-4.32%$189.67$18,193.651.04%7.93%With a global economic downturn and GDP in negativeterritory, the Czech Republic has witnessed a slowdown indevelopment and investment throughout all of 2009. Newoffice, retail and industrial development has significantlydiminished due to a lack of financing and reduced tenantdemand. This also applies to shopping centre development,which has almost come to a halt.Prague has 2.6 million SM of modern office space composedof 50% inner city, 30% outer city and 20% city centre with70% new buildings and 30% refurbished. Vacancy is around13%. Prague will see about 130,000 SM of new space in2009, a year over year drop of 60%. Pankrac Budejovicka’soffice hub continued to be the preferred location. Significantprojects include Prague Marina, Factory Futurama andPrague 8. Only 85,000 SM of modern office space will comeon the Prague market in 2010. This will ease thedemand/supply situation and help to maintain rents.The Czech Republic has 240 SM of shopping centre spaceper 1,000 inhabitants. Of this, 1.9 million is in shoppingcentres and 600,000 SM in retail parks. Openingsinclude Forum Liberec (20,000 SM), Liberec Plaza (19,500SM), Skodovka Klatovy (16,000 SM), Forum Usti nad labem(26,400 SM), Olympia Brno (25,000 SM), Area Bory PhaseII (15,000 SM), Atrium Hradec Kralove (7,300 SM) and retailPark Kladno (6,000 SM). There are currently two outletcenters. There is a total inventory of 3,277,000 SM of industrialspace in the region; 1,600,000 SM in Prague and1,680,000 SM in the rest of the Czech Republic. Vacancy isat 20%. Rent remains low at €3-€4.5/SM/month.The commercial real estate investment market is experiencinga surprisingly low level of activity and of the foursignificant office investments transacted in 2009, two wereagreements made from previous years. The most significanttransactions have been the purchase of JungmannovaPlaza Gemini and Prague 4 by Deka. Yields were 7% and7.5%, respectively.Financing of new developments remains key. Rates aredown but pre-leasing requirements are up. Since demandfor space is dramatically reduced, this has led to manydevelopment sites being put on hold.Interest Rate(%)1.00%Interest Rate(%)1.25%Population (Millions)7.569Population (Millions) 10.425Sofia At A GlanceConversion: 0.6681 € = 1 US$ RENT/M 2 /MO US$ RENT/SF/YRLow High Low High VacancyCITY CENTER OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAIL€€€€€€€€€25.0010.005.0015.008.005.003.002.004.00€€€€€€€€€35.0016.0010.0025.0012.007.005.004.006.00$$$$$$$$$41.7216.698.3425.0313.358.345.013.346.67$$$$$$$$$58.4026.7016.6941.7220.0211.688.346.6710.01N/AN/AN/AN/AN/AN/AN/AN/AN/ACity Center (High Street Shop) € 50.00 € 100.00 $ 83.43 $ 166.87 N/ANeighborhood Service CentersCommunity Power Center(Big Box)Regional Shopping Centers/MallSolus Food Stores€€€€20.006.0015.006.00€€€€40.008.0025.008.00$$$$33.3710.0125.0310.01$$$$66.7513.3541.7213.35N/AN/AN/AN/ADEVELOPMENT LAND Low/M 2 High/M 2 Low/SF High/SFOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidentialN/A N/A N/A N/AN/A N/A N/A N/AN/A N/A N/A N/AN/A N/A N/A N/AN/A N/A N/A N/AN/A N/A N/A N/APrague At A GlanceConversion: .793 EUR = 1 US$ RENT/M 2 /MO US$ RENT/SF/YRLow High Low High VacancyCITY CENTER OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIAL€€€€€€220.00140.00130.00160.00140.00100.00€€€€€€240.00180.00160.00180.00160.00130.00$ 29.62$ 18.85$ 17.50$ 21.54$ 18.85$ 13.46$$$$$$32.3124.2421.5424.2421.5417.5013.0%13.5%14.0%13.0%11.0%10.0%Bulk WarehouseManufacturingHigh Tech/R&DRETAIL€€€66.0055.0040.00€€€72.0060.0050.00$$$8.897.415.39$$$9.698.086.733.0%3.0%3.0%City Center€ 1,320.00 € 1,800.00 $ 177.73 $ 242.35 2.0%Neighborhood Service CentersCommunity Power Center (Big Box)Regional Shopping Centers/MallsSolus Food Stores€€€€420.00100.00480.00120.00€€€€480.00140.00660.00140.00$ 56.55$ 13.46$ 64.63$ 16.16$$$$64.6318.8588.8618.855.0%3.0%5.0%N/ADEVELOPMENT LAND Low/M 2 High/M 2 Low/SF High/SFOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidential€ 300.00 € 1,000.00 $ 40.39 $ 134.64€ 116.00 € 166.00 $ 15.62 $ 22.35€ 30.00 € 60.00 $ 4.04 $ 8.08€ 16.00 € 33.00 $ 2.15 $ 4.44€ 40.00 € 70.00 $ 5.39 $ 9.42€ 30.00 € 90.00 $ 4.04 $ 12.122010 Global Market Report ■ www.naiglobal.com 44

Copenhagen, DenmarkFinlandContactNAI Denmark+45 70 23 00 26Country DataArea (KM 2 )GDP Growth (%)GDP 2009 (US$ B)GDP/Capita (US$)Inflation Rate (%)UnemploymentRate (%)1334.3-2.43%$308.32$55,942.171.68%3.50%Forced sales of properties and asset management havebeen a dominant part of the 2009 market in Copenhagen.The interest rate had fallen steadily during 2009 to thecurrent 1.25% but is expected to increase during 2010. Theunemployment rate has increased to approximately 4% andis expected to increase in 2010. GDP in 2009 is expectedto end negative at -4.1% but turn around to 1.5% in 2010.Office vacancy increased in 2009 to the current level of4.7 % in the CBD. We expect the vacancy rate to increasefurther in 2010. One of the largest new office developmentsis the 25,000 SM SEB Bank property. Jeudan has justacquired office properties totaling approximately €400 million.Prime industrial locations along the highways and attractivefacilities are still hard to find in Copenhagen, which has keptthe rent level stable. We believe that the rent will stay levelin 2010. The vacancy rate rose from 1.9% in the capitalarea to approximately 2.8%.The retail market has been severely affected by the financialcrisis and rent levels have fallen by approximately 20% inthe Copenhagen area. In the primary retail streets, thereis still no real vacancy. The vacancy has primarily hit thesecondary locations. The vacancy rate for the greaterCopenhagen area is 3%, which is expected to increaseslightly in 2010.The demand for properties in general, is still very low due tofinancial uncertainty. Even a very low interest rate has nothelped much. Yields in general have increased. Distressedproperties have, on many occasions, been bought by thebanks that have the largest securities. We are expecting theprices will find a stable level in the beginning of 2010.The investment market is slowly starting to loosen up andduring 2009 there have been a few large transactions. Thepension funds are willing to buy at competitive levels, but thecore properties they are targeting are very scarce.ContactNAI Premises+358 46 712 2197Country DataArea (KM 2 )GDP Growth (%)GDP 2009 (US$ B)GDP/Capita (US$)Inflation Rate (%)UnemploymentRate (%)338,424-7.00%$242.33$45,876.383.00%8.74%The Finnish economy seems to have reached the bottombut Finland’s recovery from the recession will take time.Finland became a victim of the global crisis mainly due toits export-driven economy while its domestic businessremained relatively healthy. Since approximately 45% ofFinnish GDP accounts from foreign trade, Finland’s recoveryis very much based on the recovery of its trade partners. Anupward turn in the Finnish economy is expected to start late2010 into early 2011.During 2009 the transaction volume in the Finnish propertymarket has been very low. Reasons for this stem from pooravailability, high financing margins and the fact that sellersand buyers have a wide gap in their yield expectations. Fromits highest volume in 2007, transaction volume hasdecreased approximately 80%. At the moment, 65% ofinvestors are domestic compared to 54% in 2008 and 35%in 2007. In the Helsinki Metropolitan Area (HMA), over thespan of the past year the prime office yield level has risenfrom 5% to 6%. During the past year, more than 400,000SM of new office space has been completed in the HMAarea. This has increased the vacancy rates almost 40%compared to last year’s figures. At the same time, rents havedecreased, which has affected Net Operating Income atthe property level and decreased transaction volumes. Thecurrent vacancy rate for 2009 in HMA is approximately6.8% compared to 4.6% in 2008.The past year was not without significant transactions. InQ1 Google bought an old paper industry property from StoraEnso for €40,000,000. In Q2, Etera Mutual Pension InsuranceCompany sold its office properties, Swing Life ScienceCenter, for €120,000,000 to Fund of Commerz Real AG. InQ3, Finnair Facilities Management made a sale-leasebacktransaction and sold its properties for €77,000.000 to NVProperty Fund I.Unemployment has been relatively low during the past severalyears due to the strong growth of the Finnish economy.While the employment rate was near 6.4% in 2008, it isexpected to increase to almost 10% in 2010 based on theGDP’s 1% growth in 2008 versus the prediction of -7%growth in 2009.Interest Rate(%)1.00%Interest Rate(%)1.00%Population (Millions)5.511Population (Millions) 5.34Copenhagen At A GlanceConversion: 5.4824 DKK = 1 US$ RENT/M 2 /YR US$ RENT/SF/YRLow High Low High VacancyCENTER CITY OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)DKK 1,300.00DKK 1,200.00DKK 700.00DKK 900.00DKK 850.00DKK 1,900.00DKK 1,700.00DKK 1,000.00DKK 1,300.00DKK 1,100.00$ 22.03$ 20.33$ 11.86$ 15.25$ 14.40$$$$$32.2028.8116.9522.0318.645.0%4.7%7.0%5.0%5.0%Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDKK 500.00DKK 350.00DKK 350.00DKK 400.00DKKDKKDKKDKK850.00600.00600.00650.00$$$$8.475.935.936.78$$$$14.4010.1710.1711.016.5%2.5%3.0%2.5%DowntownDKK 3,500.00 DKK 15,000.00 $ 59.31 $ 254.18 1.3%Neighborhood Service Centers DKK 900.00 DKK 2,500.00 $ 15.25 $ 42.36 4.5%Community Power CenterDKK 1,000.00 DKK 2,200.00 $ 16.95 $ 37.28 3.0%Regional MallsSolus Food StoresDKKDKK100.00900.00DKK 2,200.00DKK 1 ,500.00$ 16.95$ 15.25$$37.2825.423.0%1.5%DEVELOPMENT LAND Low/M 2 High/M 2 Low/SF High/SFOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidentialDKK 1,800.00 DKK 4,000.00 $ 30.50 $ 67.78DKK 1,500.00 DKK 3,500.00 $ 25.42 $ 59.31DKK 1,200.00 DKK 3,000.00 $ 20.33 $ 50.84DKK 1,500.00 DKK 2,750.00 $ 25.42 $ 46.60DKK 1,800.00 DKK 4,000.00 $ 30.50 $ 67.78DKK 1,000.00 DKK 3,000.00 $ 16.95 $ 50.84Finland At A GlanceConversion: .793 EUR = 1 US$ RENT/M 2 /MO US$ RENT/SF/YRLow High Low High VacancyCITY CENTER OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk Warehouse€€€€€€€22.0022.0017.0017.0015.009.006.00€€€€€€€27.0027.0021.0019.0018.0014.007.50$$$$$$$30.9330.9323.9023.9021.0912.658.44$ 37.96$ 37.96$ 29.52$ 26.71$ 25.31$ 19.68$ 10.54N/A4.7%6.2%10.5%11.1%14.0%5.3%Manufacturing€ 5.00 € 7.00 $ 7.03 $ 9.84 5.3%High Tech/R&DRETAIL€ 6.00 € 8.00 $ 8.44 $ 11.25 5.3%Downtown€ 25.00 € 140.00 $ 35.15 $ 196.82 2.3%Neighborhood Service CentersCommunity Power CenterRegional MallsSolus Food Stores€€€€11.0011.0011.009.00€€€€40.0040.0040.0016.00$$$$15.4615.4615.4615.46$ 56.23$ 56.23$ 56.23$ 56.232.8%2.9%2.9%3.0%DEVELOPMENT LAND Low/M 2 High/M 2 Low/SF High/SFOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidentialN/A N/A N/A N/A€ 275.00 € 500.00 $ 346.78 $ 630.52€ 175.00 € 300.00 $ 220.68 $ 378.31€ 225.00 € 275.00 $ 283.73 $ 346.78€ 250.00 € 400.00 $ 315.26 $ 504.41€ 250.00 € 600.00 $ 315.26 $ 756.622010 Global Market Report ■ www.naiglobal.com 45

Paris - lle de France (Paris Region), FranceContactNAI Evolis+33 1 81 72 00 00Country DataArea (KM 2 )GDP Growth (%)GDP 2009 (US$ B)GDP/Capita (US$)Inflation Rate (%)UnemploymentRate (%)Interest Rate(%)1334.3-2.36%$2,634.82$42,091.330.34%9.54%1.00%Population (Millions) 62.598Despite technical factors such as the impact of companiesrestocking their inventories or the ramp-up of governmentstimulus packages, the French government has maintainedits prediction that the economy in France will not emergefrom recession until sometime in 2010. The employmentmarket suffers of this context, in particular in Greater Paris.The real estate market has been hit hard by this challengingeconomic environment. Adding to the difficulties is investmentactivity hit by the freeze in the volume of capital committedfollowing the onset of the financial crisis, ongoing tight creditconditions, hesitancy among market players and the persistentgap between appraisal values and market values.Office property accounted for 53% of total investments comparedto 80% during the peak in the investment cycle.A total of 1.8 million SM is expected to enter Greater Parisin 2009, which is 36% less than 2008. This level of take-upshould remain stable in 2010. Demand for office space wasstifled by worsening employment conditions and deterioratingcorporate balance sheets. Furthermore, many tenants optedto renegotiate their leases rather than move to cheaperpremises.An exception has been the public sector, which was veryactive, led by 22,000 SM of office space leased by SNCF(national train company) in the CNIT in La Défense. This wasthe largest transaction of the year. On the supply side, thearrival on the market of a significant volume of new officespace launched in 2007 contributed to an increase in theoffice stock that is expected to reach 5 million SM at theend of the year. This would represent a vacancy rate of 8%by the end of 2009.The 2010 French real estate market should look nearly thesame as in 2009, even with expectations that the investmentmarket will recover thanks to an adjustment betweenseller prices and buyer expectations.Paris At A GlanceConversion: 0.6727 € = 1 US$ RENT/M 2 /YR US$ RENT/SF/YRLow High Low High VacancyCITY CENTER OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)€€€€550.00420.00250.00180.00€€€€700.00600.00450.00320.00$$$$75.9658.0034.5324.86$$$$96.6782.8662.1544.196.5%6.0%6.5%8.0%Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAIL€€€€€150.00120.0045.0055.0050.00€€€€€250.00200.0050.0075.00130.00$$$$$20.7216.576.216.216.91$$$$$34.53 10.0%27.62 11.0%6.91 N/A6.91 N/A17.95 N/ACity Center€ 7,500.00 € 10,500.00 $1,035.78 $1,450.09 N/ARetail Units in ParksCommunity Power Center (Big Box)Regional Shopping Centers/MallsSolus Food Stores€€170.00N/A150.00N/A€€190.00N/A180.00N/A$$23.48N/A20.72N/A$$26.24N/A24.86N/AN/AN/AN/AN/ADEVELOPMENT LAND Low/M 2 High/M 2 Low/SF High/SFOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidentialN/A N/A N/A N/AN/A N/A N/A N/AN/A N/A N/A N/AN/A N/A N/A N/AN/A N/A N/A N/AN/A N/A N/A N/AFrankfurt am Main, GermanyContactNAI apollo+49 69 970 50 50Country DataArea (KM 2 )GDP Growth (%)GDP 2008 (US$ B)GDP/Capita (US$)Inflation Rate (%)UnemploymentRate (%)356,8541.93,818.4746,498.652.98.0Population (Millions) 82.1Frankfurt am Main At A GlanceConversion: .793 EUR = 1 US$ RENT/M 2 /YR US$ RENT/SF/MOLow High Low High VacancyCITY CENTER OFFICEClass A (Prime)Class B (Secondary)Average City CenterSUBURBAN OFFICEWestend Class A (Prime)Westend Class B (Secondary)Suburban Class A (Prime)Suburban Class B (Secondary)INDUSTRIAL€€€€€€€270.00147.00225.00252.00162.00150.00138.00€€€€€€€471.00234.00360.00456.00288.00192.00150.00$ 35.83$ 19.51$ 29.86$ 33.44$ 21.50$ 19.91$ 18.32$$$$$$$62.5131.0647.7860.5238.2225.4819.9114.09%14.09%14.09%14.09%14.09%14.09%N/ABulk WarehouseManufacturingHigh Tech/R&DRETAIL€€€42.0048.0054.00€€€81.0081.00180.00$$$5.576.377.17$$$10.7510.7523.89N/AN/AN/AZeil (Prime Shop Units)Goethe Strasse (Prime Shop Units)€ 2,400.00€ 1,470.00€ 3,120.00€ 2,640.00$ 318.52$195.09$ 414.08$ 350.37N/AN/ACommunity Power Center (Big Box)Regional Centers/MallsSolus Food Stores€€€96.0096.00144.00€€€180.00180.0092.00$ 12.74$ 12.74$ 19.11$$$23.8923.8925.48N/AN/AN/ADEVELOPMENT LAND Low/M 2 High/M 2 Low/SF High/SFOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidentialThe German market seems to be overcoming the crisisfaster than anticipated. GDP for 2010 will increase by0.75%. Unemployment is at 8.0%, up from 7.4% in 2008with an increase expected in 2010. The real estate marketshows falling prices and modest levels of activity in mostsectors.For many companies, the weak economy, combinedwith the ongoing restrictive loan environment, represents athreat to their very existence. These factors continue toimpact demand in all real estate sectors. A clear recoveryin the market is unlikely in the next six to nine months. Ifimprovement in the global economic situation is sustained,the real estate market should show a slight improvement inQ3 2010, and then move laterally for a year or two.The investment market saw weakened demand frominvestors during the first half of 2009, which impactedinvestment volume in the most important German businesscenters: Berlin, Düsseldorf, Frankfurt, Hamburg, Munich andStuttgart. Transaction volume dropped almost 65% to €715million, down from €2 billion in 2008. Prime yields were5.5%, up from 4.6% in 2008. Prime property prices havefallen by 17% reflecting the weakening demand for officespace and the resultant increase in vacancy with ratespredicted to increase.Leased office space in Frankfurt in the first nine months wasapproximately 273,000 SM, a 30% decrease from 395,000SM in 2008. Locations with the highest demand includedthe financial district/trade fair district with 125,132 SM, thecity center/railway station at 20,330 SM and the CityWest/Bockenheim area at 18,526 SM. Roughly 340,000SM is forecast to be absorbed in the market in 2009.New development and refurbishments in the first six monthsof 2009 were at 100,450 SM up from 92,000 SM in 2008.A decline is expected for 2010 and 2011 due to financeproblems for projects without pre-leasing. Prime rent is at€34.00/SM/month, down from €42.00/SM/month in 2008.Average rent is at €16.00/SM/month, down from€21.50/SM/month in 2008. The vacancy rate is 14.4% with1,699,000 SM, slightly up from 1,650,000 SM in 2008.The industrial market in Frankfurt and surrounding areasleased approximately 225,000 SM in the first nine months.Prime rents were at €6.00/SM/month and the average rentwas €4.50/SM/month, both unchanged from 2008. The2009 forecast for absorption is approximately 250,000-300,000 SM.€ 3,000.00 € 19,600.00 $ 398.15 $ 2,601.26€ 400.00 € 1,000.00 $ 53.09 $ 132.72€ 160.00 € 250.00 $ 21.23 $ 33.18€ 170.00 € 250.00 $ 22.56 $ 33.18€ 180.00 € 250.00 $ 23.89 $ 33.18€ 500.00 € 1,000.00 $ 66.36 $ 132.722010 Global Market Report ■ www.naiglobal.com46

Athens, GreeceReykjavik IcelandContactNAI Ktimatiki+30 210 3628559Country DataArea (KM 2 )GDP Growth (%)GDP 2009 (US$ B)GDP/Capita (US$)Inflation Rate (%)UnemploymentRate (%)Interest Rate(%)1334.3-0.75%$338.25$30,304.751.13%9.50%1.00%Population (Millions) 11.162Greece weathered the economic crisis fairly well despite a15.8% drop in building permits. The market is looking to thenew government for a way out from Ministry decisions concerningmatters of semi-sheltered spaces. Property taxationis another major issue for 2010. The market awaiting governmentprovided incentives to boost construction throughcheaper loans, radical changes in urban planning laws andefforts towards tying up loose ends that deter foreign investorsfrom investing. Further, the market is eagerly awaitingresolution of major projects Votanikos, Galatsi andMesogeia malls.The office market in Athens is estimated at over 2 million SMwith the vast majority being under 500 SM floor plates. RecentClass A buildings tend to be from 800 SM to 1,000SM. Older buildings have limited or no parking. Current existinginventory is estimated between 50,000 SM to 75,000SM with less than 25,000 SM under construction. Vacancyrates are estimated at 7-8% for all classes, mainly due tocorporate consolidations. Demand for over 2,000 SM to8,000 SM is high, however, supply is limited. Yields increasedfrom their low of 6% to reach 7-7.5%.Property prices on prime locations in Thessaloniki highstreetshave dropped by an estimated 5-10%, while in otherlocations prices have dropped by over 15% in some cases.On Tsimiski Street, ground retail spaces are leased for €100-€150/SM and sale prices reach €30,000 to €35,000/SM,while the same numbers for Mitropoleos Street are €50/SMand €8,000 to €10,000/SM, respectively.Retail investments in Thessaloniki seem undeterred by thecrisis. Louis Vuitton leased a further 100 SM for its store,while Inditex signed deals for four city center stores, includingan €8.2 million leasing deal for its Pull & Bear brand.Eurobank Properties REIC purchased three retail stores totaling33,000 SM leased to Praktiker Hellas, a subsidiary ofGerman Praktiker AG. The deal closed at a reported price of€46 million, which is an estimated 9.5% reduction from a2006 reported value. The yield is at 8.3%.Tourism income fell 10.7% and shipping income dropped38.7% in August 2009 compared to the same period in2008, while current account balance remained unchangedat €425 million. Travel expenditure from non-locals dropped10.7% over August 2008, while locals increased spending9.7%. Transportation gross receipts (mostly shipping)dropped 38.7%, while income account deficit dropped by€56 million.ContactNAI Reykjavik+ 354 5331122Country DataArea (KM 2 )GDP Growth (%)GDP 2009 (US$ B)GDP/Capita (US$)Inflation Rate (%)UnemploymentRate (%)Interest Rate(%)1334.3-8.51%$11.78$36,873.4311.67%8.62%12.00%Population (Millions) 0.319The economic situation in Iceland has been uncertainthroughout 2009 because of the collapse of 80% of thebanking system in October 2008. The property market hasbeen extremely slow. The number of commercial real estatesales is only about 10-20% of the volume recorded in 2007.The economy is export driven with fish and aluminumthe primary exports, and the domestic tourist business isbooming because of the low value of the Icelandic krona.The property market in Iceland has been slow or almostfrozen throughout 2009. Most deals that occur involvesmaller units where buyers are using the opportunity tobuy into a good location now at a lower price than in thelast few years. Many of the Icelandic real estate holdingcompanies have gone or are going bankrupt, so the ownershipof a large part of the leased out real estate base ischanging hands, mostly to the new government-ownedbanks. It is not yet known if or when these properties will besold in the market.The fundamentals in the Icelandic economy are the exportof fish and aluminum, which have been enjoying the veryweak Icelandic krona. Also the tourism in Iceland has beenbooming, which again has resulted in increasing demandfor hotel rooms. Banks have been more willing to lend intohotel development projects than any other type of projects.Many office, retail and residential development projects havebeen delayed or cancelled, and in the immediate future suchnew projects are not likely to be started. The Icelandicgovernment has applied for Iceland to become a member ofthe EU. Some investors may see that as an opportunity toinvest in Iceland.The value of the Icelandic krona is very low now. Prices ofproperties have come down. Iceland may join the EU withinthe next two years and adopting the Euro within five years.Athens At A GlanceConversion .793 EUR = 1 US$ RENT/M2/MONTH US$ RENT/SF/YEARLow High Low High VacancyCENTER CITY OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power Center (Big Box)Regional MallsSolus Food Stores€ 16.00 € 22.00 $ 26.62 $ 36.61 10.0%€ 15.00 € 21.00 $ 24.96 $ 34.94 10.0%€ 9.00 € 12.00 $ 14.98 $ 19.97 15.0%€ 16.00 € 21.00 $ 26.62 $ 34.94 10.0%€ 14.00 € 20.00 $ 23.29 $ 33.28 10.0%€ 10.00 € 13.00 $ 16.64 $ 21.63 15.0%€ 4.50 € 7.50 $ 7.49 $ 12.48 5.0%€ 6.00 € 8.00 $ 9.98 $ 13.31 N/A€ 7.00 € 8.50 $ 11.65 $ 14.14 N/A€ 35.00 € 290.00 $ 58.24 $ 482.54 15.0%€ 20.00 € 40.00 $ 33.28 $ 66.56 15.0%€ 11.00 € 18.00 $ 18.30 $ 29.95 N/A€ 20.00 € 150.00 $ 33.28 $ 249.59 N/A€ 9.00 € 14.00 $ 14.98 $ 23.29 N/ADEVELOPMENT LAND Low/M 2 High/M 2 Low/SF High/SFOffice in CBD€ 5,000.00 € 12,000.00 $ 7,462.69 $ 17,910.45Land in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-park€€N/A120.00150.00€€N/A245.00300.00$$N/A179.10 $223.88 $N/A365.67447.76Retail/Commercial LandResidential€ 1,600.00€ 1,000.00€€2,700.003,000.00$ 2,388.06 $$ 1,492.54 $4,029.854,477.61Reykjavik At A GlanceConversion: 122 ISK = 1 US$ RENT/M 2 /MO US$ RENT/SF/YRLow High Low High VacancyCITY CENTER OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILCity CenterNeighborhood Service CentersCommunity Power Center (Big Box)Regional Shopping Centers/MallsSolus Food StoresDEVELOPMENT LANDISK 1,322.00ISK 1,322.00ISK 1,133.00ISK 850.00ISK 850.00ISK 708.00ISK 708.00ISK 708.00ISK 850.00ISK 1,417.00ISK 1,133.00ISK 1,133.00ISK 1,606.00ISK 1,417.00Low/M 2 ISK 1,983.00ISK 1,983.00ISK 1,416.00ISK 1,133.00ISK 1,133.00ISK 945.00ISK 1,039.00ISK 1,039.00ISK 1,322.00ISK 2,834.00ISK 1,700.00ISK 1,606.00ISK 2,361.00ISK 1,983.00High/M 2 $$$$$$$$$$$$$$12.0812.0810.357.777.776.476.476.477.7712.9510.3510.3514.6812.95Low/SF$$$$$$$$$$$$$$18.1218.1212.9410.3510.358.649.499.4912.0825.9015.5314.6821.5718.12High/SFN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidentialISK 6,100,000 ISK 9,760,000 $ 4,645.11 $ 7,432.18ISK 1,220,000 ISK 3,660,000 $ 929.02 $ 2,787.07ISK 1,220,000 ISK 3,660,000 $ 929.02 $ 2,787.07ISK 1,220,000 ISK 3,660,000 $ 929.02 $ 2,787.07ISK 1,220,000 ISK 3,660,000 $ 929.02 $ 2,787.07ISK 2,440,000 ISK 9,760,000 $ 1,858.05 $ 7,432.182010 Global Market Report ■ www.naiglobal.com 47

Tel Aviv, IsraelAlmaty, KazakhstanContactNAI Yair Levy Strategy+ 972 3 613 66 99Country DataArea (KM 2 )GDP Growth (%)GDP 2009 (US$ B)GDP/Capita (US$)Inflation Rate (%)1334.3-0.09%$215.73$29,671.593.60%The condition of the Israeli economy in the last year is relativelystable compared to the current global crisis. Israelibanks did not collapse and most of their losses are a resultof real estate investments abroad that the banks funded fortheir Israeli clients, mainly in Eastern Europe.In 2009, the Israeli real estate market acted contrary to thetrends. The residential market had a significant increase of15% compared with 2008. The activity in the commercialreal estate market divided as follows: In the office market, nonew projects started construction and some of the projectsunder construction were halted. New sublease propertiesentered the market and caused a price drop of about 17%,causing the demand to decline significantly.Most of the activity in the market focused in yield deals. Thebeginning of the year reflected a yield of about 9.5%, whileend of the year yields declined to 8% reflecting the growingdemand for yield properties.In the industrial market, the building of new structures orsites has not begun and the rent prices are in decline sincethe demand for traditional industries has decreased. Inthe last year, several new commercial centers opened incentral Israel, which stimulated great interest among clients.In Israel, four main groups have formed specializing in retail.In our opinion, most of their future development lies in theexpansion of neighborhood commercial centers. We anticipatethe start of 2010 will be characterized by serious damage tothe commercial real estate market and we estimate that theresidential sector will moderate in the near future.In the coming year, public companies in the field of the realestate in Israel will find it difficult to return their bonds, whichwill force them to sell many properties in the country andabroad. In our opinion, this may result in further decliningprices in the commercial field.ContactNAI Aristan7 727 278 94 08Country Data*Area (KM 2 )GDP Growth (%)GDP 2009 (US$ B)GDP/Capita (US$)Inflation Rate (%)1334.3-2%$107.04$6,875.507.53%Almaty is the largest city in Kazakhstan with a populationof more than 1.5 million. It plays an important role as thebusiness hub for all of Central Asia. According to officialstatistics, GDP growth in 2008 was 3.3% and is forecastedto drop to 2% in 2009. The inflation rate was fixed at 9.5%by the end of 2008. The economy of Kazakhstan is based onoil and gas, mining, metals, grain and the production of othernatural resources.Office rental rates fell significantly by an average of morethan 40-50% during 2008 and Q1 2009. The market seemsto have stabilized in Q3 2009 when the rental rates hitbottom. By October 2009, the average net rent office spacefell to US $35/SM/month US $20/SM/month for Class Aspace and US $20/SM/month for Class B.International mass market retailers such as Mango, Promod,Celio and Sinequanone all reported a robust increase in theirsales volumes in Kazakhstan and noted they are positionedamong the top compared with similar stores worldwide. Thishas resulted in many global retailers looking for regional andlocal partners for franchise cooperation in Kazakhstan.However, one of the main obstacles for global retailers toexpand in Kazakhstan is a limited number of modern professionalproperties both in shopping centers and the streetretail sector.During 2008 and the first half of 2009, the investmentmarket was not active. There were almost no inquiries andinstitutional foreign investors have stopped financingreal estate projects seemingly everywhere in the world.Most of the investment transactions were between localinvestors and such deals were not as visible. Localcommercial banks have disposed of a large number of realestate assets that were pledged over the past few years.Metro C&C opened its first store in 4Q 2009 in Astana withplans to open up to 14 centers over the next several years.Inditex Group and Al Hokair Group signed lease agreementsto open the first Zara store in Almaty by the end of 2009and the second store in February 2010.UnemploymentRate (%)8.20%UnemploymentRate (%)7.40%Interest Rate(%)0.75%Interest Rate(%)9.00%Population (Millions)7.27Population (Millions) 15.568Tel Aviv At A GlanceConversion 3.75 NIS = 1 US$ RENT/M 2 /MO US$ RENT/SF/YRLow High Low High VacancyCENTER CITY OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseNISNISNISNISNISNISNIS90.0085.0060.0070.0060.0045.0034.00NIS 120.00NIS 110.00NIS 70.00NIS 75.00NIS 65.00NIS 50.00NIS 38.00$ 26.76$ 25.27$ 17.84$ 20.81$ 17.84$ 13.38$ 10.11$$$$$$$35.6732.7020.8122.3019.3214.8611.3012.0%8.0%15.0%25.0%14.0%15.0%10.0%ManufacturingHigh Tech/R&DRETAILNIS 26.00N/ANIS 28.00N/A$ 7.73N/A$ 8.32N/A5.0%N/ADowntownNeighborhood Service CentersCommunity Power Center (Big Box)Regional MallsSolus Food StoresDEVELOPMENT LANDNIS 110.00NIS 130.00NIS 70.00NIS 80.00N/ALow/M 2 NIS 140.00NIS 150.00NIS 80.00NIS 100.00N/AHigh/M 2 $$$$32.7038.6520.8123.78N/ALow/SF$$$$41.6244.5923.7829.73N/AHigh/SF5.0%N/AN/AN/AN/AOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidentialNIS 2,000.00 NIS 2,500.00 $ 49.55 $ 61.93NIS 1,600.00 NIS 1,800.00 $ 39.64 $ 44.59NIS 1,000.00 NIS 1,400.00 $ 24.77 $ 34.68N/A N/A N/A N/AN/A N/A N/A N/AN/A N/A N/A N/AAlmaty At A GlanceConversion 151 KZT = 1 US$ RENT/M2/MO US$ RENT/SF/YRLow High Low High VacancyCITY CENTER OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power CenterRegional Shopping Centres/MallsSolus Food StoresKZT 4,228.00 KZT 5,285.00 $ 31.22 $ 39.02 30.0%KZT 4,077.00 KZT 5,285.00 $ 30.10 $ 39.02 15.0%KZT 2,114.00 KZT 3,926.00 $ 15.61 $ 28.99 20.0%KZT 2,718.00 KZT 3,775.00 $ 20.07 $ 27.87 20.0%KZT 3,020.00 KZT 4,228.00 $ 22.30 $ 31.22 14.0%KZT 1,812.00 KZT 2,567.00 $ 13.38 $ 18.95 10.0%KZT 755.00 KZT 1,510.00 $ 5.57 $ 11.15 N/AKZT 1,057.00 KZT 1,963.00 $ 7.80 $ 14.49 N/AKZT 1,057.00 KZT 1,963.00 $ 7.80 $ 14.49 N/AKZT 7,550.00 KZT 18,120.00 $ 55.74 $ 133.78 N/AKZT 4,530.00 KZT 10,570.00 $ 33.44 $ 78.04 N/AN/A N/A N/A N/A N/AKZT 3,775.00 KZT 9,815.00 $ 27.87 $ 72.46 N/AN/A N/A N/A N/A N/ADEVELOPMENT LAND Low/M 2 High/M 2 Low/SF High/SFOffice in CBDKZT 226,500.00 KZT 679,500.00 $ 0.01 $ 0.04Land in Office ParksKZT 120,800.00 KZT 377,500.00 $ 0.01 $ 0.02Land in Industrial ParksKZT 90,600.00 KZT 226,500.00 $ 0.01 $ 0.01Office/Industrial Land - Non-parkRetail/Commercial LandResidentialKZT 105,700.00 KZT 256,700.00KZT 151,000.00 KZT 453,000.00KZT 135,900.00 KZT 302,000.00$$$0.010.010.01$$$0.020.030.022010 Global Market Report ■ www.naiglobal.com 48

KuwaitOslo, NorwayContactNAI Kuwait+1 965 2437717Country DataArea (KM 2 )GDP Growth (%)GDP 2009 (US$ B)GDP/Capita (US$)Inflation Rate (%)UnemploymentRate (%)1334.3-1.51%$114.88$32,491.464.65%7.10%Kuwait, like most world economies, slowed down in 2008-09 with negative GDP growth, a decline in exports andstruggling credit conditions. However, with oil prices pushing$70 a barrel, Kuwait could run a budget surplus of KD 6billion (US $20 billion) in 2009-10 riding on higher thanexpected oil prices. The real estate sector is expected toreenergize with the slowly but steadily improving economicbackdrop and the impact of a recent legal ruling permittingfinancial institutions to trade residential property.2009 saw the opening of the 360° Mall by Tamdeen featuringa great mix of high-end luxury icons like Yves Saint Laurent,Burberry, Dolce & Gabbana and the Géant Hypermarket. Theaverage asking rent for retail space in the ground Floor inKuwait stood at KD 27.5/SM. There is demand for retailspace. This sector was least affected during the economiccrisis and did not witness any drop in rentals.In the office sector, 2009 saw the completion of a numberof high rise office towers, including the Arraya Tower, AlTijaria tower and many office towers of smaller scale. Thishas resulted in an oversupply of office space in Kuwait Citybut there is demand for office space towards internal areas.The average asking rent for office space in Kuwait stoodat KD 7.5/SM. The Al Hamra Tower, currently under constructionin downtown Kuwait City, will become the tallestbuilding in Kuwait at 412 meters on completion in 2010 andwill include 98,000 SM of commercial and office space.The expatriate workforce in Kuwait registered a declineof 0.85% due to the economic crisis, which resulted in lowdemand and increased vacancy in the apartment sector.The average asking rate for single-bedroom units standsat KD 170, two-bedroom at KD 220 and three bedroomat KD 380.The Kuwait government has allocated its largest ever budgetof KD 1 billion for housing projects for its citizens. Kuwaithas about 124 projects under construction worth about US$114 billion, including major infrastructure projects like the$7 billion Kuwait Metro, island development projects,enlargement of road networks, developments of ports andother infrastructure.ContactNAI FirstPartners+47 2301 1400Country DataArea (KM 2 )GDP Growth (%)GDP 2009 (US$ B)GDP/Capita (US$)Inflation Rate (%)UnemploymentRate (%)1334.30.11%$368.96$76,692.092.33%3.30%Given the international economic environment Norwegianindustries in general performed quite well during andsubsequent to the crisis in 2008 and 2009. This can becredited to rising oil prices and confidence returning to thebank systems in the mid-2009. The Norwegian Economy ismoving forward positively.The Norwegian commercial property market was very quietat the beginning of 2009, but towards the summer activitystarted to pick up. During the second half of 2009 more andlarger transactions occurred and capital was again available.Total transaction volume for 2009 will be less than in 2008,but the prospects for 2010 are better. The estimated transactionvolume in 2009 is about US $2.3 billion to $2.7billion. There has been a significant increase in prime officeyields, from 5.75% in July 2008 to 6.75% in July 2009.As we approach 2010 the prime yield is decreasing slightlyto 6.5%. Yields in other sectors show similar trends butless marked.In 2009 rentals decreased dramatically from the record highlevels before the crisis, but rentals have now started toflatten out, and it is expected that this will continue in 2010in most sectors. The industrial market is the least volatilesector but we did experience a slight correction of rentsduring 2009 and this will level out in 2010. As bankruptciesand unemployment did not increase to the anticipated levelwe have not seen the number of sublettings in the leasingmarket, which at last crisis brought down the rental prices toeven lower levels. Vacancies are increasing but absorption ispicking up and is expected to limit the impact on rental prices.Norway had a soft landing compared to our neighboringcountries and the rapid adjustment in 2009 has revealedopportunities. The economic fundamentals are stable inNorway and the commercial property market is picking upat its new levels.Interest Rate(%)6.20%Interest Rate(%)1.50%Population (Millions)3.536Population (Millions) 4.811Kuwait At A GlanceConversion .2781 KD = 1 US$ RENT/M2/MO US$ RENT/SF/YRLow High Low High VacancyCITY CENTER OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power Center (Big Box)Regional Shopping Centres/MallsSolus Food StoresKD 7.00 KD 12.00 $ 28.06 $ 48.10 6.0%KD 9.00 KD 13.00 $ 36.08 $ 52.11 4.0%KD 5.00 KD 8.00 $ 20.04 $ 32.07 2.0%KD 7.00 KD 8.00 $ 28.06 $ 32.07 3.0%KD 7.00 KD 10.00 $ 28.06 $ 32.07 2.0%KD 5.00 KD 7.00 $ 20.04 $ 28.06 1.0%KD 2.00 KD 5.00 $ 8.02 $ 20.04 3.0%KD 3.00 KD 10.00 $ 12.03 $ 40.09 3.0%N/A N/A N/A N/A N/AKD 15.00 KD 28.00 $ 60.13 $ 112.24 2.0%KD 8.00 KD 20.00 $ 32.07 $ 80.17 1.0%KD 20.00 KD 30.00 $ 80.17 $ 120.26 2.0%KD 20.00 KD 35.00 $ 80.17 $ 140.31 2.0%KD 9.00 KD 20.00 $ 36.08 $ 80.17 1.0%DEVELOPMENT LAND Low/M 2 High/M 2 Low/SF High/SFOffice in CBDKD 5,000.00 KD 8,500.00 $ 17,979.14 $ 30,564.55Land in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkN/AKD 400.00N/AN/AKD 1,250.00N/AN/A$1,438.33N/A$N/A4,494.79N/ARetail/Commercial LandKD 3,000.00 KD 4,500.00 $10,787.49 $ 16,181.23ResidentialKD 250.00 KD 1,000.00 $ 898.96 $ 3,595.83Oslo At A GlanceConversion: 5.63 NOK = 1 US$ RENT/M 2 /YR US$ RENT/SF/YRLow High Low High VacancyCITY CENTER OFFICENew ConstructionClass A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALNOK 2,600.00NOK 2,400.00NOK 1,600.00NOK 1,700.00NOK 1 ,700.00NOK 1,200.00NOK 3,100.00NOK 3,000.00NOK 2,300.00NOK 2,100.00NOK 2,000.00NOK 1,400.00$ 42.90$ 39.60$ 26.40$ 28.05$ 28.05$ 19.80$$$$$$51.1549.5037.9534.6533.0023.102.0%6.0%9.0%5.0%5.0%10.0%Bulk WarehouseManufacturingNOKNOK550.00450.00NOKNOK950.00700.00$$9.087.43$$15.6811.555.0%6.0%High Tech/R&DRETAILNOK 750.00 NOK 1 ,050.00 $ 12.38 $ 17.33 6.0%City CenterNeighborhood Service CentersNOK 2,500.00NOK 1,200.00NOK11,000.00NOK 1,500.00$ 41.25$ 41.25$ 181.51$ 181.514.0%6.0%Community Power Center(Big Box)Regional Shopping Centers/MallsNOK 1,300.00NOK 1,800.00NOK 2,500.00NOK 5,000.00$ 21.45$ 29.70$$41.2582.517.0%7.0%Solus Food StoresNOK 900.00 NOK 1,500.00 $ 14.85 $ 24.75 7.0%DEVELOPMENT LAND Low/M 2 High/M 2 Low/M 2 High/M 2Office in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidentialNOK 10,000.00 NOK 20,000.00 $ 1,776.20 $ 3,552.40NOK 3,000.00 NOK 6,000.00 $ 532.86 $ 1,065.72NOK 1,500.00 NOK 3,000.00 $ 266.43 $ 532.86NOK 1,000.00 NOK 2,500.00 $ 177.62 $ 444.05NOK 1,500.00 NOK 4,000.00 $ 177.62 $ 444.05NOK 1,000.00 NOK 5,000.00 $ 177.62 $ 888.102010 Global Market Report ■ www.naiglobal.com 49

Doha, QatarBucharest, RomaniaContactNAI Qatar+974 4316717Country DataArea (KM 2 )GDP Growth (%)GDP 2009 (US$ B)GDP/Capita (US$)Inflation Rate (%)UnemploymentRate (%)11,43740.90%$100.40$75,956.3115.10%0.50%The State of Qatar is a peninsula located on the Western sideof the Arabian Gulf. Doha is the capital of the country. Qataris one of the fastest growing economies in the world and isone of the richest countries in the world with the secondlargest GDP per capita income. Qatar has the third-largestnatural gas reserves in the world and it has shaped thecountry into one of the most competitive Arab economies.Qatar’s construction sector is propelled by the country’spowerful economy and thriving real estate sector. The mostpositive aspects in the real estate sector stem from developersbringing together timely transfers of high quality,value-added projects, banks’ improvement in managingthe risks associated with over exposure to the real estatesector and government efforts to overcome the difficulties.All of these factors are responsible for creating goodfundamentals in the real estate market in Qatar.There is an excellent demand for office spaces in Doha. Thevacancy rate in the CBD is around 7% and 5% in suburbanareas where the average rate per SM is low compared to theCBD, but with similar facilities. The average asking rate foroffice space in the CBD is US $65/SM and in suburbanareas, the average rate is US $51/SM.The retail sector has a very promising future. The averagerate of growth in the retail sector is 21.3%. The growth ismainly attributed to the decrease in inflation and increase inconsumer spending. There is a good demand for warehousespace in Qatar with the average rate of growth at 24.5%.There is a promising growth in the demand for residentialapartment units/flats. The average rate (leasehold) for athree-bedroom apartment is US $2,910, US $2,300 fora two-bedroom apartment, and US $1,790 for a singlebedroomapartment. The average asking rate for a villa is US$4,485 with rates ranging from US $3,560 to US$5,770/SM for freehold properties.ContactNAI Property Partners+1 40 21 667 7105Country DataArea (KM 2 )GDP Growth (%)GDP 2009 (US$ B)GDP/Capita (US$)Inflation Rate (%)UnemploymentRate (%)238,391-8.5%RON 497.4$ 12,2004.94%9.6%Romania is currently experiencing a severe economicrecession with GDP expected to contract by 8.5% in 2009.However, the country is expected to return to economicgrowth in 2010, and the government has set a target dateof 2014 for joining the EU. Due to the political crisis,Romania is in jeopardy of losing the second loan installmentfrom the World Bank.The past year marked a major shift in the supply anddemand equilibrium. Tenants have retained a position ofpower as the result of a record amount of new office spacebeing delivered to the market, falling demand for space andincreased vacancy rates. The total GLA of modern officestock has now surpassed the 1 million SM mark following245,000 SM of new space delivered in the first half ofthe year.Reduced consumption has resulted in falling rents, highervacancy rates and suspended construction of new projects.The total modern retail space in Romania currently standsat approximately 1.16 million SM, with Bucharest claiming450,000 SM of that amount. Despite the economic slowdown,some retailers are once again showing an appetite forexpansion encouraged by the flexibility and incentivesoffered by the landlords.During the first half of 2009, both the supply and demandof industrial properties declined. Bucharest saw only 40,000SM of new product delivered despite earlier predictions of175,000 SM. Negligible new supply came to the market inthe second half of 2009. The total stock of modern industrialproperties is currently 920,000 SM in the greaterBucharest-Ilfov area. Following record years in 2007 and2008, the lack of available financing has pushed yields tobetween 9-10% for institutional investment stock.The most important acquisition of the year was a takeoveron the London Stock Exchange of Fabian Romania PropertyFund by Black Sea Global Properties (BSGS). This deal, worth€50 million, included six office buildings in Bucharest andfive development sites in other Romanian cities. Followingrecord years of 2007 and 2008, the lack of available financehas pushed yields out to 9-10% for institutional investmentstock.Interest Rate(%)5.55%Interest Rate(%)8.00%Population (Millions)16.23Population (Millions) 22,215,000Doha At A GlanceConversion: 3.64 QAR = 1 US$ RENT/M 2 /Mo US$ RENT/SF/YRLow High Low High VacancyCITY CENTER OFFICENew ConstructionClass A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)QAR 180.00QAR 160.00N/AQAR 170.00QAR 135.00QAR 300.00QAR 250.00N/AQAR 230.00QAR 195.00$ 55.13$ 49.00N/A$ 52.07$ 41.35$$$$91.8876.57N/A70.4459.727.0%2.0%N/A5.0%3.0%Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILQAR 90.00QAR 65.00N/AN/AQARQAR120.0090.00N/AN/A$ 27.56$ 19.91N/AN/A$$36.7527.56N/AN/A4.0%20.0%N/AN/ACity CenterNeighborhood Service CentersCommunity Power Center(Big Box)Regional Shopping Centers/MallsSolus Food StoresDEVELOPMENT LANDQAR 740.00QAR 250.00N/AQAR 575.00QAR 225.00Low/M 2 QAR 825.00QAR 475.00N/AQAR 770.00QAR 275.00High/M 2 $ 226.64$ 76.57N/A$ 176.11$ 68.91Low/M 2 $ 252.67$ 145.48N/A$235.83$84.22High/M 2N/AN/AN/AN/A5.0%Office in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidentialQAR 17,500.00 QAR 24,000.00 $ 4,807.69 $ 6,593.41N/A N/A N/A N/AN/A N/A N/A N/AN/A N/A N/A N/AQAR 7,500.00 QAR 17,250.00 $ 2,060.44 $ 4,739.01QAR 1,200.00 QAR 5,900.00 $ 329.67 $ 1,620.88Bucharest At A GlanceConversion: 0.793 EUR = 1 US$ RENT/M 2 /MO US$ RENT/SF/YRLow High Low High VacancyCITY CENTER OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)€€€€15.0018.0010.0010.00N/A€€€€20.0022.0015.0014.00N/A$ 21.09$ 25.31$ 14.06$ 14.06N/A$$$$28.1230.9321.0919.68N/A5.0%5.0%5.0%N/A10.0%Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAIL€€€7.003.001.50N/A€€€9.004.004.00N/A$$$9.844.222.11N/A$$$12.655.625.62N/A10.0%10.0%10.0%N/ACity Center€ 25.00 € 70.00 $ 35.15 $ 98.41 5.0%Neighborhood Service CentersCommunity Power Center (Big Box)Regional Shopping Centers/MallsSolus Food Stores€€5.00N/A6.00N/A€€20.00N/A25.00N/A$$7.03N/A8.44N/A$$28.12N/A35.15N/AN/AN/A15.0%N/ADEVELOPMENT LAND Low/M 2 High/M 2 Low/SF High/SFOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidential€ 2,000.00 € 4,000.00 $ 2,522.07 $ 5,044.14€ 450.00 € 800.00 $ 567.47 $ 1,008.83€ 20.00 € 60.00 $ 25.22 $ 75.66€ 15.00 € 100.00 $ 18.92 $ 126.10€ 150.00 € 800.00 $ 189.16 $ 1,008.83€ 80.00 € 2,000.00 $ 100.88 $ 2,522.072010 Global Market Report ■ www.naiglobal.com 50

Moscow, Russian FederationSt. Petersburg, Russian FederationContactNAI Becar+7 495 787 42 97Country DataArea (KM 2 )GDP Growth (%)GDP 2009 (US$ B)GDP/Capita (US$)1334.3-7.55%$1,254.64$8,873.61Among other BRIC emerging markets Russia has been themost impacted by the global economic crisis. Nevertheless,the economy, still very dependent on raw materials and oilprices, started showing some signs of recovery in fall 2009.Moscow, as the capital and largest city of Russia, has beenhit the hardest over the past 12 months, but is also expectedto see the fastest recovery.The overall vacancy rate is now higher than 15% for everytype of office and retail property, compared with less than3% a year ago. In particular, the vacancy rate for Class A andClass B office space reached more than 20%, its highestlevel in a decade. Prime rents are at a historically low level,down 40% to 60% compared with 2008, and the share ofsubleases has significantly increased. It is now possible tolease excellent Class A office space for less than $500/SMper year in Moscow. Prime retail properties in main retailcorridors can be leased for $2,000/SM per year, comparedwith $5,000 a year ago.The Russian hospitality market is doing comparatively better:Average occupancy is around 50%, versus 70% in 2008.There were several transactions in this sector in 2009 withopportunistic investors buying old assets in Moscow atextremely low prices to reconvert them into western hotels.Other major Russian cities are still largely under-supplied inhotel rooms, and we expect local and foreign investors toremain active in this market throughout 2010.A significant number of distressed office and retail assetsare now available for sale. Yields for Class A office centersin Moscow and St. Petersburg are now around 12% to 13%,or 60% to 100% higher than in 2008.A majority of investors believe that the market reached itsbottom in Q3 2009. Office yields should remain relativelystable over 2010 as prices are expected to go up while verylow current rental rates and occupancy levels shouldmechanically increase in Moscow’s still structurally undersuppliedoffice market.ContactNAI Becar+7 812 490 70 01Country DataArea (KM 2 )GDP Growth (%)GDP 2009 (US$ B)GDP/Capita (US$)1334.3-7.55%$1,254.64$8,873.61The second largest city in Russia, St. Petersburg is locatedat the crossroads of Finland and Baltic countries, andhistorically has benefited from the positive influence of thedynamic economy in this region. Large international andRussian companies generally decide to be headquarteredin Moscow, so St. Petersburg has been less impacted bythe global economic crisis than the rival capital city.Over 2009, rents decreased relatively slower than inMoscow. Prime office and retail rents, which used to bemuch lower than in Moscow, are now almost equivalent.Rental rates reach $800/SM per year for the best officebuildings in the city, and $2,500/SM for prime retail properties.The industrial market is still largely under supplied,and rents resisted the impact of the crisis better than othersectors. Prime warehouse rental rates are now around$170/SM per year and for the first time are at a higher levelthan in Moscow. The hospitality market has been strongly hitin 2009 with occupancy rates dropping below 50%. Buthospitality remains attractive to many investors due to thestrong tourism potential of the region and lack of Europeanstandard two- and three-stars hotels.Investment yields are lower than in Moscow but areexpected to increase as office and retail prices go down overthe coming months. At the current 12% office and retailcapitalization rates, only local Russian investors are nowready to purchase real estate assets. International investorsconsidering larger volumes of investment, $40 million andup, believe the risk reward for investing in St. Petersburgshould be higher than in Moscow, and therefore yields of14% to 15% should be achieved.The St. Petersburg market seems to be about to reach itsbottom, a few month after Moscow. Paradoxically, manyowners are still trying to lease or sell properties at pre-crisisprices, which results in a large gap between the offer andthe demand. This imbalance is expected to progressivelydisappear over 2010.Inflation Rate (%)12.27%Inflation Rate (%)12.27%UnemploymentRate (%)7.60%UnemploymentRate (%)7.60%Interest Rate(%)9.50%Interest Rate(%)9.50%Population (Millions)141.391Population (Millions) 141.391Moscow At A GlanceConversion: 1 USD = 1 US$ RENT/M 2 /YR US$ RENT/SF/YRLow High Low High VacancyCITY CENTER OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAIL$$$$$$$$650.00550.00200.00N/A250.00150.00100.00100.00120.00$$$$$$$$800.00800.00500.00N/A500.00300.00130.00140.00140.00$$$$$$$$60.3951.1018.58N/A23.2313.949.299.2911.15$$$$$$$$74.3274.3246.45N/A46.4527.8712.0813.0113.01N/AN/AN/AN/AN/AN/AN/AN/AN/ADowntown$ 1,200.00 $ 3,000.00 $ 111.48 $ 278.71 N/ANeighborhood Service Centers $ 500.00 $ 1,500.00 $ 46.45 $ 139.35 N/ACommunity Power CenterRegional Malls$ 1,000.00$ 1,200.00$ 2,500.00$ 2,500.00$$92.90111.48$$232.26232.26N/AN/ASolus Food Stores$ 400.00 $ 1,300.00 $ 37.16 $ 120.77 N/ADEVELOPMENT LAND Low/ Hectare High/Hectare Low/Acre High/AcreOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidential1,000.00 1,500.00 N/A N/A300.00 1,000.00 N/A N/A150.00 750.00 N/A N/A150.00 500.00 N/A N/A150.00 2,000.00 N/A N/A200.00 2,000.00St. Petersberg At A GlanceConversion: 0.793 EUR = 1 US$ RENT/M 2 /YR US$ RENT/SF/YRLow High Low High VacancyCITY CENTER OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAIL$$$$$$$$$500.00400.00300.00300.00300.00150.0090.00100.00120.00$$$$$$$$$800.00800.00400.00450.00450.00300.00100.00140.00170.00$$$$$$$$$46.4537.1627.8727.8727.8713.948.369.2911.15$$$$$$$$$74.3274.3237.1641.8141.8127.879.2913.0115.79N/AN/AN/AN/AN/AN/AN/AN/AN/ACity Center$ 1,600.00 $ 2,500.00 $ 148.64 $ 232.26 N/ANeighborhood Service Centers $ 550.00 $ 1,100.00 $ 51.10 $ 102.19 N/ACommunity Power Center (Big Box)Regional Shopping Centers/MallsSolus Food Stores$$$150.00120.00100.00$$$300.00260.00200.00$$$13.9411.159.29$$$27.8724.1518.58N/AN/AN/ADEVELOPMENT LAND Low/ Hectare High/Hectare Low/Acre High/AcreOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidential700.00 1500.00 N/A N/A25.00 1000.00 N/A N/A50.00 150.00 N/A N/A200.00 1000.00 N/A N/A300.00 1500.00 N/A N/A200.00 2000.00 N/A N/A2010 Global Market Report ■ www.naiglobal.com 51

Belgrade, SerbiaJohannesburg, South AfricaContactNAI Atrium+ 381 11 2205880Country DataArea (KM 2 )GDP Growth (%)GDP 2009 (US$ B)GDP/Capita (US$)Inflation Rate (%)UnemploymentRate (%)Interest Rate(%)1334.3-4%$42.39$5,742.049.85%14.00%10.00%Population (Millions) 7.382In the first half of 2009, Serbia’s GDP decreased by 4.1%.The main contributors were manufacturing (-20%), trade(-8%) and construction (-16.1%). Positive to mention arethe latest arrangements with China and Russia, providingloans for infrastructural investments worth more than 1.2billion Euros. 2010 will bring a slight recovery, but the returnto the strong growth rates will not be seen before 2011.The total stock of Class A office space increased by 22,000SM. to 292,000 SM. An additional 30,000 SM will be deliveredby year-end 2009 and an estimated 55,000 SM isexpected to deliver in 2010. The trend looks positive, sincethe reduced rent levels are generating more clients. As aresult of increased supply, the short-term vacancy reached28%. But the latest occupier requests are stronger than expected,leading to absorption of vacant space until 2011.Prime rents are currently set at €18/SM/month. BesidesUSCE shopping mall, which opened in March 2009 with50,000 SM of net leasable area, only single-box retailconcepts such as KIKA furniture, MERKUR DIY, and Mr.Bricolage are under development. All major shopping centerdevelopments have been put on hold, explained by the lackof finance and increased uncertainty of the rental market.The Austrian EYEMAXX announced two large-scale logisticprojects, in Nis and Belgrade. Both projects are planned tobe completed with its first phases in early 2011 offering30,000 SM of leasable area. The entire project comprisesmore than 200,000 SM. It is expected that more internationaldevelopers will enter the Serbian market in 2011. Theinvestment market is relatively immature with few available“products.” Though there has been no known transaction in2009, the expected yield for office buildings is estimatedbetween 8-12%.2010 is the year of opportunities. The boom premiums areout of the markets and not many players are able to acquire.Certainly, some property owners will look to cash out andsell parts of their properties, not necessarily for distressedconditions but for decent price/value ratios.ContactNAI FINLAY+ 27 11 807 4724Country DataArea (KM 2 )GDP Growth (%)GDP 2009 (US$ B)GDP/Capita (US$)Inflation Rate (%)UnemploymentRate (%)Interest Rate(%)1334.3-2.17%$277.38$5,635.197.20%23.20%7.00%Population (Millions) 49.223Our real estate markets have succumbed to negative capitalgrowth (source: IPD SA), returning a nominal -0.8% forJanuary-June 2009. The retail and industrial sectors bothrecorded a 4.1% total return and offices recorded a totalreturn of 1.6%. CPI has surprised everyone by falling to6.1%, close to the Reserve Bank’s targeted 3-6% range.While World Cup Soccer 2010 is set to positively affect retail& hospitality sectors alike, there is concern for employmentonce all related infrastructure initiatives have been completed.B-grade office vacancies increased to 17% in the CityCentre and 21.8% in suburban markets, while other officevacancies remained relatively consistent. New developmentcontinues on a demand basis only.The industrial sector forms the backbone of the SouthAfrican economy, which has been substantially affected bythe global financial crisis. While rental decrease has beenminimal and vacancy rates stagnant in 2009, both will beadversely affected in 2010.Consumer spending is still down and retail turnover is underimmense pressure, but with minimal casualties at this stage.We are likely to see smaller businesses struggle to stayafloat in 2010. Larger retail chains have performed well in2009 under the circumstances, but 2010 will prove muchtougher. However, most retailers anticipate a turnaround bymid-2010. Steady increases in retrenchments alongside thelooming drastic electricity tariff hikes will dictate retailperformance in 2010.Investment yields have stayed relatively constant year overyear, and minimal large sales/mergers/acquisitions haveoccurred this year. Financial institutions have halted funding,in turn slowing the development market to a near standstill.There are still a few funds and developers who are beingvery aggressive in an advantageous market, and on thewhole, transactions have occurred in-house. Hospitality isstruggling at present, although construction is currentlyunder way to cater to the World Cup Soccer 2010 touristinflux.Anticipated 45% annual increases in electricity tariffsfor 2010-12, could lead to thousands of retrenchments,liquidations, and consumer debt rising dramatically. Gautrain(Johannesburg’s rapid-rail link) will be activated in July2010. Hosting 2010 World Cup Soccer should attract over450 000 soccer fans to South Africa in May/June 2010.Belgrade At A GlanceConversion: 0.793 EUR = 1 US$ RENT/M 2 /MO US$ RENT/SF/YRLow High Low High VacancyCITY CENTER OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAIL€€€€€€€€14.5014.5012.508.0014.508.002.004.50N/A€€€€€€€€18.0018.0016.0016.0016.0016.007.007.00N/A$$$$$$$$23.0923.0919.9112.7423.0912.743.197.17N/A$$$$$$$$28.6728.6725.4825.4825.4825.4811.1511.15N/AN/A29.0%17.0%N/A11.0%52.0%N/AN/AN/ACity Center€ 80.00 € 150.00 $ 127.41 $ 238.89 N/ANeighborhood Service CentersCommunity Power Center (Big Box)Regional MallsSolus Food Stores€€€€15.007.0015.0010.00€€€€60.0015.0060.0018.00$$$$23.8911.1523.8915.93$$$$95.5623.8995.5628.67N/AN/AN/AN/ADEVELOPMENT LAND Low/M 2 High/M 2 Low/SF High/SFOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidential€ 400.00 € 1,200.00 N/A N/A€ 200.00 € 450.00 N/A N/A€ 30.00 € 100.00 N/A N/AN/A N/A N/A N/A€ 50.00 € 100.00 N/A N/A€ 200.00 € 500.00 N/A N/AJohannesburg At A GlanceConversion: 9.8104 SAR = 1 US$ NET RENT/M 2 /YR US$ RENT/SF/YRLow High Low High VacancyCITY CENTER OFFICENew Construction (AAA)SAR 2,100.00 SAR 2,100.00 $ 25.71 $ 25.71 N/AClass A (Prime)Class B (Secondary)SUBURBAN OFFICESARSAR360.00240.00SARSAR924.00660.00$$4.412.94$$11.318.083.9%21.8%New Construction (AAA)SAR 2,100.00 SAR 2,100.00 $ 25.71 $ 25.71 N/AClass A (Prime)Class B (Secondary)INDUSTRIALSARSAR780.00588.00SAR 1,440.00SAR 1,140.00$$9.557.20$$17.6313.963.9%17.0%Bulk WarehouseManufacturingHigh Tech/R&DRETAILSARSARSAR216.00216.00336.00SARSARSAR456.00420.00600.00$$$2.642.644.11$$$5.585.147.353.0%3.3%3.7%City CenterSAR 264.00 SAR 3,900.00 $ 3.23 $ 47.74 N/ANeighborhood Service CentersSAR 1,020.00 SAR 4,200.00 $ 12.49 $ 51.42 N/ACommunity Power Center (Big Box) SAR 840.00 SAR 3,360.00 $ 10.28 $ 41.13 N/ARegional MallsSolus Food StoresSAR 2,040.00N/ASAR 8,400.00N/A$ 24.97N/A$ 102.83N/AN/AN/ADEVELOPMENT LAND Low/Hectare High/Hectare Low/Hectare High/HectareOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidentialSAR 15,000,000 SAR 20,000,000 $ 799,889.92 $ 1,066,519.90SAR 17,500,000 SAR 22,500,000 $ 933,204.91 $ 1,199,834.88SAR 6,500,000 SAR 9,000,000 $ 346,618.97 $ 479,933.95SAR 9,000,000 SAR 12,000,000 $ 479,933.95 $ 639,911.94SAR 15,000,000 SAR 20,000,000 $ 799,889.92 $ 1,066,519.90SAR 2,500,000 SAR 6,500,000 $ 133,314.99 $ 346,618.972010 Global Market Report ■ www.naiglobal.com 52

Madrid, SpainStockholm, SwedenContactNAI Sol+ 34 91 181 1567Country DataArea (KM 2 )GDP Growth (%)GDP 2009 (US$ B)GDP/Capita (US$)Inflation Rate (%)UnemploymentRate (%)1334.3-3.77%$1,438.36$31,141.50-0.29%18.20%The International Monetary Fund expects Spanish GDP tocontract 3.8% in 2009 and 0.7% in 2010. New constructionpermits declined 40.1%. Unemployment could reach 20%in 2010. Public deficit rose 5.9% of GDP. Rents have fallen,especially in secondary locations with high vacancy.New development is currently on hold. Prime yields areincreasing with stable demand in prime locations. Tenantscontinue to remain very selective. Banks and savings banksare divesting after going from €2 billion in December 2007to €15.3 billion worth of assets due to foreclosures and debtin March 2009.Only 15 of the predicted 20 to 25 shopping centers openedin the retail sector (600,000 SM) as rents continued to fall.Rental rates are down 15% on prime space and 25% onsecondary properties. Demand for well operated and opportunisticassets is rising.The office market saw a decline of 25% in the number ofdeals completed compared to 2008. The average deal sizefell to roughly 620 SM. Companies are relocating and/ortaking advantage of lower rents as a cost savings measureand many are reducing space. The prime rents in Madridfell to €32 SM/month, about a 28% decrease from theprevious year. Landlords are offering rent free periods andmore flexible lease conditions.Although some industrial space is being converted to mixeduse, manufacturing companies are vacating older industrialparks in favor of more modern facilities. Logistic demandremained steady.Almost 40% of transactions were sale-leasebacks withtenant covenants being a key factor. Banco Pastor, CaixaCatalunya and BBVA’s €1.5 billion transaction, by DeutscheBank are prime examples. The current economic climatehas brought a return of foreign funds and investors to themarket. Colonial sold its Principe Pío mall in Madrid for €125million to Dutch investor Corio.ContactNAI Svefa+46 8 441 15 50Country DataArea (KM 2 )GDP Growth (%)GDP 2009 (US$ B)GDP/Capita (US$)Inflation Rate (%)UnemploymentRate (%)1334.3-4.83%$397.70$43,146.742.25%8.50%Despite the past year’s international economic turmoil, Swedenhas been doing relatively well. GDP has been decreasingbut the exceptionally low rate has supported theconsumption and kept the prices on a stable level for theresidential market. The Repo rate is now on a historicallyand extremely low level of 0.25%. The prime rent in theStockholm CBD has declined approximately 10% duringthe past year.The vacancies for offices have not increased substantiallyyet but higher vacancy levels are expected. An increase insublets or second-hand lease agreements with lower rentshas been observed. No bigger office construction projectshave been started during the year and the decline of rentlevels is noticeable. Almost no construction of new biggerretail areas has started during the last year. Slightly highervacancy rates than before have been noticed. However,turnover-based rents may prevent rising vacancies.Some investors fear that the retail market doesn’t need toomuch additional expansion during the upcoming years. Theindustrial market is relatively stable and has, as the othermarkets, experienced a very low transaction volume.Increasingly companies are doing sale-leasebacks in orderto improve their balance sheets. Yields for industrial realestatehave been relatively stable throughout the year. Rentalregulation for the residential market has kept rents on arelatively low level, especially in the city of Stockholm. Newagreements between different negotiating parties havemade it clear that bigger consideration of location shouldbe taken into account in the Stockholm area in the futureregarding rent levels. Even government level changes of thelaw in this area have been taken into consideration andmight be changed to allow more differentiated and highertop rents.The transaction market has experienced higher yield levels.The Swedish banks had some problems about a year agoand the government gave credit guaranties to some of them.Mostly it was investments in Baltic countries that causedproblems. Since funds are relatively accessible again, thenumber of transactions has increased.Interest Rate(%)1.00%Interest Rate(%)0.25%Population (Millions) 46.188Population (Millions)9.217Madrid At A GlanceConversion: 0.793 EUR = 1 US$ NET RENT/M 2 /MO US$ RENT/SF/YRLow High Low High VacancyCITY CENTER OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAIL€€€€€€€€€22.0016.0014.0020.008.005.004.003.505.00€€€€€€€€€32.0024.0018.0030.0019.0010.006.006.006.00$$$$$$$$$30.9322.4919.6828.1211.257.035.625.627.03$$$$$$$$$44.9933.7425.3142.1826.7114.068.448.448.445.5%8.0%15.0%30.0%15.0%N/AN/AN/AN/ACity Center€ 55.00 € 126.00 $ 77.32 $ 177.14 N/ANeighborhood Service CentersCommunity Power Center (Big Box)Regional MallsSolus Food Stores€€€€10.004.006.008.00€€€€11.005.607.0010.00$$$$14.065.628.4414.06$$$$15.467.879.8419.68N/AN/AN/AN/ADEVELOPMENT LAND Low/M 2 High/M 2 Low/SF High/SFOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidential€ 700.00 € 1,050.00 $ 82.01 $ 123.01€ 210.00 € 630.00 $ 24.60 $ 73.81€ 525.00 € 210.00 $ 61.51 $ 24.60N/A N/A N/A N/A€ 175.00 € 630.00 $ 20.50 $ 73.81€ 525.00 € 2,275.00 $ 61.51 $ 266.52Stockholm At A GlanceConversion: 6.8275 SEK = 1 US$ RENT/M 2 /MO US$ RENT/SF/YRLow High Low High VacancyCITY CENTER OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew ConstructionClass A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseSEKSEKSEKSEKSEKSEKSEK3,500.003,700.002,000.001,700.001,700.001,100.00800.00SEK 4,000.00SEK 4,200.00SEK 3,200.00SEK 2,400.00SEK 2,300.00SEK 1,500.00SEK 1,100.00$$$$$$$47.6250.3527.2123.1323.1314.9710.89$$$$$$$54.4357.1543.5432.6631.3020.4114.9710.0%7.0%12.0%6.0%10.0%15.0%6.0%ManufacturingSEK 600.00 SEK 900.00 $ 8.16 $ 12.25 9.0%High Tech/R&DRETAILSEK 800.00 SEK 1,150.00 $ 10.89 $ 15.65 6.0%City CenterSEK 10,000.00 SEK 15,000.00 $ 136.07 $ 204.11 N/ANeighborhood Service CentersCommunity Power Center (Big Box)Regional Shopping Centers/MallsSolus Food StoresSEKSEKSEKSEK1,700.001,500.001,000.001,000.00SEK 2,500.00SEK 2,500.00SEK 4,000.00SEK 1,800.00$$$$23.1320.4113.6113.61$$$$34.0234.0254.4324.49N/AN/AN/AN/ADEVELOPMENT LAND Low/ M 2 High/M 2 Low/SF High/SFOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidentialSEK 8,000.00 SEK 13,000.00 $ 1,171.73 $ 1,904.06SEK 1,500.00 SEK 2,900.00 $ 219.70 $ 424.75SEK 650.00 SEK 1,300.00 $ 95.20 $ 190.41SEK 500.00 SEK 950.00 $ 73.23 $ 139.14SEK 1,300.00 SEK 2,300.00 $ 190.41 $ 336.87SEK 2,500.00 SEK 4,000.00 $ 366.17 $ 585.872010 Global Market Report ■ www.naiglobal.com 53

Geneva, SwitzerlandZürich, SwitzerlandContactNAI Commercial CRE+ 41 22 707 44 44Country DataArea (KM 2 )GDP Growth (%)GDP 2009 (US$ B)GDP/Capita (US$)Inflation Rate (%)UnemploymentRate (%)Interest Rate(%)1334.3-1.95%$484.13$66,126.80-0.40%3.48%0.25%Population (Millions) 7.321The Geneva area has weathered the economic storm relativelywell within the traditional sectors of finance and bio-pharma,although a greater impact has been apparent within thewatch making industry. Inflation has revolved around zerosince March 2009 and at the time of publication the averageinflation rate for 2009 is -0.5%. Unemployment rose during2009 to 3.9%, which remains low in European terms,though Geneva has suffered more than other zones in thisrespect.The office market has seen strong take-up in the CBD andairport areas. Waterfront premises remain in short supplywith tenants prepared to drive up rental values.The interest of hedge funds has been sustained throughout2009. Combined with the effect of the “winners and losers”among the private banks and financial sector in general, theGeneva area will see a rise in occupation by April 2010, asthe financial players seek to position themselves.Prime rents remained buoyant in 2009, with waterfrontproperties renting for around CHF 1,000/SM per year andwell above for exceptional properties. The industrial markethas been more subdued throughout 2009 with many projectsput on hold or postponed. Despite this, developmentshave seen take-up from certain sectors such as bio-pharma,micro-technology and life science sectors. Rents remain atCHF 120-150/SM per year for production areas and CHF200-360/SM per year for high tech office space.The investment market for landmark buildings has remainedstrong with prime properties still commanding net yieldsbetween 3.25-3.85% as demand outstrips supply. The secondaryareas have seen a softening of yields and a reductionin the volume of sales.The retail market has been under pressure since September,suffering from an over-heated market during 2008 coupledwith the world economic downturn. Although still relativelyscarce, marketed units are reverting in line with sustainablemarket values.In general, prospects appear good for Geneva, which hassuffered less than many European neighbors, benefitingfrom its traditional “safe-haven” effect. While prime downtownareas will remain stable, a number of developmentson the outskirts of Geneva and around the airport may findtake-up slow in 2010.ContactNAI Commercial CRE+ 41 44 221 04 04Country DataArea (KM 2 )GDP Growth (%)GDP 2009 (US$ B)GDP/Capita (US$)Inflation Rate (%)UnemploymentRate (%)Interest Rate(%)1334.3-1.95%$484.13$66,126.80-0.40%3.48%0.25%Population (Millions) 7.321The Greater Zürich Area (GZA) is known for the financial,insurance and industrial sectors together with growing IT,pharma and life-science industries. A gradual slowdown wasnoted in the economy in the first two quarters of 2009, howeversince June a positive change has been noted. ProjectedGDP figures for 2009 are estimated at -1.7% year over year.Compared with the GDP fall to -4.6% in the Eurozone,Switzerland appears fairly stable.Despite weak demand, office projects have proceeded in thefinancial, insurance and IT sectors as they benefit fromrealignment within the Zürich marketplace. Google, Microsoftand Red Herring have all announced new expansion plans.Other players include Draper Investment, Meltwater News andDiamond Systems. Allianz has announced the re-grouping ofits organization to Wallisellen (ZH) and New Reinsurance hasrelocated from Geneva to Zürich. ACM has also opened anew branch along Bahnhofstrasse.Zürich prime rents peaked in Q1, having reached a levelbetween CHF 850-900/SM per year. The industrial sectorhas been stagnant, with many decisions being postponedor cancelled. Rents remain stable, though take-up is slow.Foreign investment interest remains strong, although majorSwiss funds rapidly acquire suitable prime properties, whichare in short supply. Owner-occupation remains stable, withthe majority of the activity in the pharmaceutical, biotech,life science or financial sectors. The volume of sales remainslow; however, prime yields have barely softened with netyields continuing to perform at sub -4% for prime locations.Bahnhofstrasse added the new Apple store to its worldbrand, however with the exception of a few newcomers theretail sector has suffered from the sluggish economy. Rentsare in the order of CHF 3,500-3,800/SM per year, thoughsome deals have resulted in achieved rents in excess of CHF7,500/SM per year.Numerous commercial projects on the outskirts of the CBDmay prevent stagnation at a later date. However, qualityoffice accommodations with large floor plans have alreadysecured occupants, notably in the WestPark Areal and Ernst& Young set to occupy the Platform area of the Prime Towerdevelopment.Geneva At A GlanceConversion: 1.2237 CHF = 1 US$ RENT/M 2 /MO US$ RENT/SF/YRLow High Low High VacancyCITY CENTER OFFICENew Construction (AAA)CHF 900.00 CHF 1,200.00 $ 82.99 $ 110.66 1.0%Class A (Prime)CHF 850.00 CHF 1,000.00 $ 78.38 $ 92.21 1.0%Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALCHF 550.00CHF 450.00CHF 450.00CHF 300.00CHFCHFCHFCHF800.00600.00550.00450.00$ 50.72$ 41.50$ 41.50$ 27.66$$$$73.7755.3350.7241.505.0%2.5%3.5%5.0%Bulk WarehouseManufacturingCHFCHF70.0090.00CHFCHF90.00150.00$$6.468.30$$8.3013.831.0%1.0%High Tech/R&DRETAILCHF 250.00 CHF 360.00 $ 23.05 $ 33.20 2.0%City CenterCHF 3,250.00 CHF 4,500.00 $ 299.70 $ 414.96 1.0%Neighborhood Service CentersCommunity Power Center (Big Box)Regional Shopping Centers/MallsSolus Food StoresCHF 450.00N/ACHF 350.00N/ACHFCHF500.00N/A600.00N/A$ 41.50N/A$ 32.28N/A$$46.11N/A55.33N/A4.0%N/A1.5%N/ADEVELOPMENT LAND Low/M 2 High/M 2 Low/SF High/SFOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidentialCHF 30,000 CHF 40,000 $ 2,766.43 $ 3,688.57CHF 700 CHF 900 $ 64.55 $ 82.99CHF 200 CHF 300 $ 18.44 $ 27.66CHF 250 CHF 400 $ 23.05 $ 36.89CHF 1,000 CHF 1,500 $ 92.21 $ 138.32N/A N/A N/A N/AZürich At A GlanceConversion: 1.00746 CHF = 1 US$ RENT/M 2 /YR US$ RENT/SF/YRLow High Low High VacancyCITY CENTER OFFICENew Construction (AAA)CHF 800.00 CHF 1,000.00 $ 73.77 $ 92.21 1.0%Class A (Prime)Class B (Secondary)SUBURBAN OFFICECHF 750.00CHF 450.00CHFCHF900.00650.00$ 69.16$ 41.50$$82.9959.941.5%4.5%New Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALCHF 450.00CHF 300.00CHF 300.00CHF 550.00CHF 450.00CHF 450.00$ 41.50$ 27.66$ 27.66$$$50.7241.5041.504.0%4.5%6.0%Bulk WarehouseManufacturingCHF 70.00CHF 80.00CHFCHF90.00150.00$$6.467.38$$8.3013.831.0%1.0%High Tech/R&DRETAILCHF 200.00 CHF 380.00 $ 18.44 $ 35.04 2.5%City CenterCHF 3,500.00 CHF 5,000.00 $ 322.75 $ 461.07 1.0%Neighborhood Service CentersCommunity Power Center (Big Box)CHF 450.00N/ACHF 500.00N/A$ 41.50N/A$ 46.11N/A4.0%N/ARegional Shopping Centers/MallsSolus Food StoresCHF 450.00N/ACHF 800.00N/A$ 41.50N/A$ 73.77N/A2.0%N/ADEVELOPMENT LAND Low/M 2 High/M 2 Low/SF High/SFOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidentialCHF 30,000 CHF 40,000 $ 2,766.43 $ 3,688.57CHF 700 CHF 900 $ 64.55 $ 82.99CHF 250 CHF 350 $ 23.05 $ 32.28CHF 250 CHF 650 $ 23.05 $ 59.94CHF 1,000 CHF 1,600 $ 92.21 $ 147.54N/A N/A N/A N/A2010 Global Market Report ■ www.naiglobal.com 54

Istanbul, TurkeyKiev, UkraineContactNAI Treas+90 216 481 47 00Country DataArea (KM 2 )GDP Growth (%)GDP 2009 (US$ B)GDP/Capita (US$)Inflation Rate (%)1334.3-6.50%$593.53$8,427.116.20%Turkey’s economy shows the impact of the global recessionin 2009. The inflation rate reached 5.39% in May, which isslightly higher than the lowest level of 5.24% in the past 39years. Turkey’s currency has depreciated 20% compared tothe first half of 2008. Construction activity declined 7.6%in2009, and the steel industry declined about 15%. Turkey’smajor export manufacturing sectors such as textile andautomotive have also been impacted negatively.Occupancy rates in CBD routes like Levent and Zincirlikuyuare still high, while Umraniye and Kozyatagi in the Asian Partof Istanbul kept their popularity to become new districts foroffices. One of the biggest office projects is the 90,000 SMAkkom office project, which will be built by Eroglu Holdingin Umraniye. In addition, Emaar Properties has purchaseda 74,000 SM land parcel in the Asian Side of Istanbul forapproximately $400 million from Toprak Holding. There willbe residence blocks as well as a 120,000 SM shoppingcenter, a five-star hotel and office buildings.The retail market, which registered fast growth in recentyears, showed signs of slowing in the first nine months of2009. By September 2009, retail supply had reached 6.06million SM in 276 retail centers. Istanbul accounts for 2.2million SM of this total in 88 shopping centers. Thereare 135 shopping centers under construction and in theplanning stage in Turkey, of which 67 are in Istanbul. Therehas been an increase in the number of warehouses dueto increased demand for industrial real estate in Turkey.Logiturk B2B Real Estate Solutions Company is planningto complete a 126,000 SM warehouse park in Istanbul.Total international direct investment in 2008 reached$17.96 billion in Turkey, where $2.94 billion of this amountwas invested in real estate. The amount of internationaldirect investment in July 2009 totaled $4.938 billion, downsignificantly from $9.735 billion in July 2008.ContactNAI Pickard+380 44 278 00 02Country DataArea (KM 2 )GDP Growth (%)GDP 2009 (US$ B)GDP/Capita (US$)Inflation Rate (%)1334.3-14.00%$115.71$2,537.8016.28%In Q2 of 2009 Ukraine’s real GDP dropped 17.8 %. Howeverthe speed of decline has decreased. The construction sectorhas decreased more than others (-47%). Its part of GDPstructure makes up 2.8%. Agriculture is the only sector thatdemonstrated growth (+2.3%). The processing industry,which is the basis of country’s GDP, had fallen 33% throughQ2 2009.Demand for professional office space has decreased considerably.In Kiev, the vacancy rate is about 15%. The fall in rentalrates from their 2008 peak is roughly 60%. Prime rents arenow about US $30-35/SM/month. Despite the decline, newoffice buildings continue to be commissioned in Kiev. Duringthe first half of 2009 three new centers were commissioned,accounting for 20,500 SM growth.From the beginning of 2009, prime rents for modern warehousefacilities within a 30km zone from Kiev dropped by30% to US $6.00-$7.00/SM/month excluding operatingexpenses. Vacancy rates are currently 35%-40%. Most warehousingdevelopments are now on hold and their delivery isrescheduled to 2010-2011. Only 70,000-80,000 SM is likelyto be delivered onto the market by the end of 2009.The occupancy rate for shopping centers in Kiev hasdecreased but it is still rather high; only about 3.5% of totalretail spaces are vacant. Yet a decrease of consumer demandand devaluation of the Hrivna led to a substantial declinein rental rates, dropping 60% since 2008. The averagerental rates today are about US $45-50/SM/month. Growthof retail space in shopping centers in the first half of 2009is at 14.3% (66,900 SM).Ukraine is still desperately short of hotels especially in thegenuine three-star category. The authorities are offering tofast track approvals but money remains tight.FDI is virtually non-existent this year and will probablyremain flat until after the presidential elections slated forJanuary 2010. However sales on yields of 20% on currentlow rental levels are possible. The opportunity for rentalgrowth and consequent capital growth is still strong.UnemploymentRate (%)12.80%UnemploymentRate (%)9.00%Interest Rate(%)6.75%Interest Rate(%)10.25%Population (Millions) 70.431Population (Millions)45.593Istanbul At A GlanceConversion: 1.49 = 1 US$ RENT/M 2 /YR US$ RENT/SF/YRLow High Low High VacancyCITY CENTER OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILCity CenterNeighborhood Service CentersCommunity Power Center (Big Box)Regional Shopping Centers/MallsSolus Food Stores$$$$$$$$$$$$$$204.00126.00108.00114.0078.0054.0048.0048.0072.00432.00264.00216.00216.00162.00$$$$$$$$$$$$$$360.00306.00138.00138.00120.00120.0084.0072.0096.001,560.00768.00576.00768.00240.00$$$$$$$$$$$$$$18.9511.7110.0310.597.255.024.464.466.6940.1324.5320.0720.0715.05$$$$$$$$$$$$$$33.4428.4312.8212.8211.1511.157.806.698.92144.9371.3553.5171.3522.30N/A15.0%N/AN/A20.0%N/AN/AN/AN/A20.0%N/AN/A18.0%N/ADEVELOPMENT LAND Low/M 2 High/M 2 Low/SF High/SFOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidential$ 850.00 $ 4,015.00 $ 78.97 $ 373.00N/A N/A N/A N/A$ 265.00 $ 825.00 $ 24.62 $ 76.64$ 210.00 $ 1,950.00 $ 19.51 $ 181.16$ 425.00 $ 3,010.00 $ 39.48 $ 279.64$ 45.00 $ 3,010.00 $ 4.18 $ 279.64Kiev At A GlanceConversion: 7,64 UAH = 1 US$ RENT/M 2 /MO US$ RENT/SF/YRLow High Low High VacancyCITY CENTER OFFICENew ConstructionClass A (Prime)Class B (Secondary)SUBURBAN OFFICENew ConstructionClass A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILN/AUAH 360.00UAH 216.00N/AN/AN/AUAH 70.00N/AN/AN/AUAH 420.00UAH 264.00N/AN/AN/AUAH 85.00N/AN/AN/A$ 52.53$ 31.52N/AN/AN/A$ 10.21N/AN/A$$$N/A61.2938.52N/AN/AN/A12.40N/AN/AN/A17.0%14.0%N/AN/AN/A35.0%N/AN/ACity CenterUAH 490.00 UAH 720.00 $ 71.50 $ 105.06 6.2%Neighborhood Service CentersCommunity Power Center (Big Box)Regional Shopping Centers/MallsSolus Food StoresDEVELOPMENT LANDUAH 360.00UAH 480.00UAH 480.00N/ALow/M 2 UAH 600.00UAH 660.00UAH 720.00N/AHigh/M 2 $ 52.53$ 70.04$ 70.04N/ALow/SF$$$87.5596.3196.31N/AHigh/SFN/A2.0%2.0%N/AOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidentialN/A N/A N/A N/AN/A N/A N/A N/AN/A N/A N/A N/AN/A N/A N/A N/AN/A N/A N/A N/AN/A N/A N/A N/A2010 Global Market Report ■ www.naiglobal.com 55

London, United KingdomContactNAI Global+1 609 945 4000Country DataArea (KM 2 )GDP Growth (%)GDP 2008 (US$ B)GDP/Capita (US$)Inflation Rate (%)244,1001.02,787.3745,681.003.8The UK economy is currently (Q2) contracting at 5.5%. WithGDP expected to return to growth in the fourth quarter, thecurrent forecast for 2009 is -4.40%. Economists are forecastingGDP growth of 1.40% for 2010. The UK Base rateis 0.5%, credit remains tight, monetary stimulus has beenextended and Sterling is relatively weak. In line with GDPforecasts, there is the perception that the real estatemarkets are at or close to bottom.Office rents have fallen 40% to 50% from the peak. Incentivesof two or three years rent free are common on 10-yearleases in the West End and City, respectively. Developmentactivity is declining. Leasing activity remains low. Unsurprisingly,warehouse rents have been falling (3.2% in the year toJune 2009) and the availability of large buildings inexcess of 10,000 SM increased by about 15%. Developmentactivity has slowed dramatically.Retail sales were up 2.4% year over year through September.Non-food retail figures were flat at around 1.1% annualgrowth while food store volumes grew at 2.8%. CentralLondon rental values have fallen 5.9% in the last 12 monthsbut some key central London streets have bucked the trend,boosted by tourism and the weak Pound. For example, BondStreet still commands rents of £750/SF Zone A. Leasingincentives are increasing. Development activity has virtuallystopped.Investment activity is improving with £1.98 billion investedin the City and West End in the first half of the year. Yieldsare hardening. Overseas investors have been attracted bythe weak pound, the length of UK leases (10-15 years),upward-only rent reviews, historically high yields andthe perception that the prime property market is close tobottom. Some UK funds have recently started to re-enterthe market.While the UK economy remains difficult and the emergencefrom recession is slower than economists were forecasting,the rate of rental decline in the different sectors is slowingand there are clear signs of a recovery in the investmentmarket.UnemploymentRate (%)5.4Population (Millions)61.1London At A GlanceConversion: 0.6162 £ = 1 US$ RENT/M 2 /YR RENT/SF/YRLow High Low High VacancyOFFICE WEST ENDMayfair£ 700.00 £ 800.00 $ 105.54 $ 120.616.7%N/AVictoriaOFFICE CITYCoreFringeMid-townINDUSTRIAL SPACE£ 500.00£ 400.00£ 300.00£ 400.00££££565.00450.00350.00450.00$$$$75.3860.3145.2360.31$$$$85.1867.8452.7767.84N/A8.5%N/AN/AN/ASouth East (excluding Heathrow) £ 85.00 £ 120.00 $ 12.82 $ 18.09 N/AHeathrowRETAIL SPACE (ZONE A)£ 130.00 £ 140.00 $ 19.60 $ 21.11 N/ABrompton RoadCanary WharfCityConvent GardenOxford StreetN/AN/AN/AN/AN/A£ 5,167.00£ 3,606.00£ 2,153.00£ 5,920.00£ 5,813.00N/AN/AN/AN/AN/A$$$$$779.01543.66324.60892.54876.41N/AN/AN/AN/AN/ANew Bond StreetN/A £ 8,234.00 N/A $ 1,241.41 N/AMarylebone High StreetDEVELOPMENT LANDN/ALow/M 2 £ 2,153.00High/M 2 N/ALow/SF$ 324.60High/SFN/AOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidentialN/A N/A N/A N/AN/A N/A N/A N/AN/A N/A N/A N/AN/A N/A N/A N/AN/A N/A N/A N/AN/A N/A N/A N/A2010 Global Market Report ■ www.naiglobal.com 56

Latin AmericaSECTION CONTENTSBuenos Aires, ArgentinaNassau, BahamasCampinas, BrazilCuritiba, BrazilPorto Alegre, BrazilRio de Janeiro, BrazilSao Paulo, BrazilSantiago, ChileSan Jose, Costa RicaKingston, JamaicaCiudad Juarez, MexicoGuadalajara, MexicoGuanajuato, MexicoMatamoros, Tamaulipas, MexicoMexicali, Baja California, MexicoMexico City, MexicoMonterrey, Nuevo Leon, MexicoQuerétaro, MexicoReynosa, MexicoSaltillo, MexicoSan Luis Potosí (SLP), MexicoTijuana, Baja California, MexicoTorreon, MexicoCaracas, Venezuela

Buenos Aires, ArgentinaNassau, The BahamasContactNAI Castro Cranwell& Weiss S.A.+54 11 5031 1600Country DataAreaGDP Growth (%)GDP 2008 (US$ B)GDP/Capita (USD)Inflation Rate (%)UnemploymentRate (%)Interest Rate (%)2,766,890-2.5%$301.33$7,508.055.58%8.8%10.5%Population (Millions) 40.134The Argentine economy is expected to shrink 2% in 2009as the agricultural and commodities sectors suffer fromlower global prices and local draught, as well as lowerinvestments due to internal political conflicts. In 2010 theeconomy is expected to bounce back and grow 2% to3% based on the country’s relative competitive advantagein sectors like agribusiness, back office services andspecialized manufacturing.Lower demand in the office market sector has causedlease prices to fall 10%-15% in Class A office space inthe Buenos Aires CBD, to an average of US $28-$32/SM/month. Vacancy rates jumped from 3% to 9%. Thedrop in value in Class B space and suburban offices hasbeen approximately 20% in 2009 with transactions rangingin the US $15-$20/SM range as corporations emphasizecost savings. Accenture, for example, took 8,000 SM in arefurbished Class B building paying approximately US$16/SM. Symantex and PepsiCo moved to suburban officebuildings at US $18/SM. Premium industrial parks andlogistics facilities maintained their values and the vacancylevel is still in the low single digits as this segment inArgentina continues to be under serviced and as demandcontinues to increase with the overall economy.In the other market segments, warehouse space vacancyhas increased slightly and values have become marginallysofter. Top retail lease values have softened in this marketduring 2009, both in high street space and in shoppingcenters. Nevertheless, the retail market continues to beunder serviced as is evidenced by the inauguration of IRSA’sDOT Shopping Center with full occupancy of its 140 stores.Capitalization rates have increased in 2009 and are generallyin the 12%-14% range although there continues to be alack of sellers, particularly of premium properties.Overall, the real estate market has entered into a down cyclein 2009 with lower demand causing vacancies to increase5%-10% and prices to soften 10%-25%.ContactNAI Lowes Realty+1 242 322 1741Country DataAreaGDP Growth (%)GDP 2008 (US$ B)GDP/Capita (USD)Inflation Rate (%)UnemploymentRate (%)Interest Rate (%)13,940-3.9%$7.40$21,727.861.84%14.2%5.5%Population (Millions) 0.341The Bahamas is known worldwide as a great destination fortravelers and, with over 5 million tourists per year, thehospitality sector is growing. The Bahamas Governmentalong with the Bahamas Financial Services Board is lookingat creating a commercial court system to resolve commercialmatters quickly and efficiently. It is hoped that a well functioningjudiciary would create confidence and attract moreinternational investors.The CBD Class A and B office market is slow as morecompanies are willing to move out of the core. In suburbanareas the demand for office space is quite high but theavailability of space is restricted due to land availability andcost. Offshore banking is still a mainstay of the economyand there have been some large mergers in 2009. Thedemand is still high for land in suburban areas as land anddevelopment costs in these areas are still reasonable.The Airport Industrial Park is growing as businesses movethere from the more congested and costly areas. This activityis mostly warehouse and back offices. The retail market isstill growing; with more residential developments in thewestern district of New Providence there is a need for moreretail centers.The downtown core has seen a downturn recently due to alack of cleanliness and safety. One of the major problems inthis area is the lack of parking and this impacts greatly theamount of local traffic. Investment sales have slowed in thesecond home market but there has been more interest byinvestors looking at either hospitality or office complexes asan investment. The Bahamar project on Cable Beach hasdrawn the interest of the Chinese and they have startedinvesting quite heavily in the Bahamas.The outlook for 2010 is a slow start in Q1 but increasedactivity in the latter part of the year as the Bahamar developmenton Cable Beach should be progressing and otherplanned projects will be getting off the ground.Buenos Aires At A GlanceRENT/M 2 /MoUS$ RENT/SF/YRLow High Low High VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power CenterRegional MallsSolus Food Storesl$$$$$$$$$$$$30.0024.0012.0018.0015.0010.003.503.505.0035.0015.00N/A18.00N/A$$$$$$$$$$$35.0032.0020.0022.0020.0012.006.005.508.0070.0020.00N/A$ 50.00N/A$$$$$$$$$$$$0.730.590.290.440.370.240.090.090.120.860.37N/A0.44N/A$$$$$$$$$$$$0.860.780.490.540.490.290.150.130.201.710.49N/A1.22N/A0.5%8.0%12.0%2.0%2.0%2.0%N/AN/AN/A5.0%15.0%N/A10.0%N/ADEVELOPMENT LAND Low/M 2 High/M 2 Low/SF High/SFOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidential$ 400.00 $ 1.00 $ 0.01 $ 0.00N/A N/A N/A N/A$ 30.00 $ 60.00 $ 0.00 $ 0.00$ 5.00 $ 70.00 $ 0.00 $ 0.00$ 200.00 $ 1.00 $ 0.01 $ 0.00$ 400.00 $ 1,000.00 $ 0.01 $ 0.03Nassau At A GlanceDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power CenterRegional MallsSolus Food StoresRENT/SF/YRLow High VacancyN/A N/A N/A$ 25.00 $ 33.00 10.2%$ 18.00 $ 25.00 15.7%N/A N/A N/A$ 25.00 $ 35.00 N/A$ 12.00 $ 18.00 N/A$ 10.00 $ 20.00 N/AN/A N/A N/AN/A N/A N/A$ 45.00 $ 95.00 8.0%N/A N/A N/A$ 35.00 $ 100.00 N/A$ 15.00 $ 25.00 N/AN/A N/A N/ADEVELOPMENT LAND Low/Acres High/Acres Low/SFOffice in CBDLand in Office ParksLand in Industrial ParksN/AN/AN/AN/AN/AN/AN/AN/AN/AOffice/Industrial Land - Non-parkRetail/Commercial LandResidential$$$10.0018.0010.00$$$18.0025.0050.000.020.00.02010 Global Market Report ■ www.naiglobal.com 58

Campinas, BrazilCuritiba, BrazilContactNAI CommercialProperties Brazil+1 55 11 5506 5655Country DataAreaGDP Growth (%)GDP 2008 (US$ B)GDP/Capita (USD)Inflation Rate (%)8,511,965-0.66%$1,481.55$7,737.324.85%Campinas is located in the state of São Paulo, about 90kmfrom the capital of the same name – São Paulo. Campinasoccupies an area of 796 km² and has a population of1.064.664 inhabitants. Eleventh richest city of Brazil andthird most populous city of the country, Campinas is part ofthe Metropolitan Complex Extended of São Paulo. As such,it is an important logistics hub for the area.The Campinas market comprises approximately one-thirdof the industrial output of the state of São Paulo, includinghigh technology and metallurgy. The region is home to morethan 10,000 companies, including prominent global namessuch as: Honda, Toyota, Unilever, 3M of Brazil, Sherwin-Williams, Bosch, Pirelli, Dell, IBM, BASF, Dow Chemical,Ericsson, Singer, Goodyear, Valero, International Paper, Nortel,Lucent, Samsung, Motorola, AmBev, Caterpillar, Bombardierand many others. The petrochemical complex iscentered in Paulínia, about 13 kilometers from Campinas,next to the Petrobrás Refinery of the Plateau (REPLAN). Thiscomplex is the largest in Brazil and one of the largest in allof Latin America, and hosts companies such DuPont,Chevron, Shell, Exxon, Rhodia and others. The Campinasairport claims the largest volume of import/export shipmentsfor the country.Campinas is also an important and diversified commercialcenter, and home to two of the largest shopping malls in thecountry—The Shopping Iguatemi of Campinas and the mallPark D. Pedro—and the International Airport Viracopos,which is involved in the international transport of shipments.The city of Campinas should attract more investors in 2010due to fiscal incentives put in place. The town has healthyvacancy and growth potential to more than the double itspresent market size.The economy showed signs of recovery. Presidential electionsin 2010, the World Cup of soccer in 2014 and the selectionof Brazil to host the 2016 Olympic Games should attractadditional investment that will support overall economicstability in the country.ContactNAI CommercialProperties Brazil+55 11 5506 5655Country DataAreaGDP Growth (%)GDP 2008 (US$ B)GDP/Capita (USD)Inflation Rate (%)8,511,965-0.66%$1,481.554.85%5.7%Curitiba is the capital of Paraná, located in the southern partof Brazil. The city occupies 435 square kilometers and hasa population of almost 1.8 million inhabitants. For many, thiscity has the best quality of life in the country. It is the seventhmost populous city of Brazil and the largest of the southernregion. The city’s initial and famous diverse town planningand legislation that aimed to contain its growth has startedto lose control.Curitiba is the fifth largest city in Brazil and one of the bestcities for investments in Latin America. It has importantcompanies in the sectors of commerce, service and financial.It has a 43 million SM industrial park, the second-largestautomotive center for the country and the Alfonso PenaInternational Airport. The rate of companies moving into themarket has increased so land and property values areincreasing and the supply rate is falling. The vacancy rate forClass A office space remained low at less than 6%. Theaverage rental rates for office space in the city of Curitiba alsoare low compared to other cities, about 15% to 20% lower.Single-purpose industrial condominiums, built primarily forcertain sectors’ needs, characterize the industrial propertymarket in Curitiba. During 2009, the industrial sector stabilizedand is now considered one of the city’s best propertyinvestments. In the retail sector, the most importantsubmarket is Ahú, now that the Ahú Prison has beenshuttered and its tenants relocated to other areas. The AnitaGaribaldi submarket has undergone one of Brazil’s biggesturban changes in recent years; many older structures arenow being redeveloped for commercial uses.UnemploymentRate (%)7.7%UnemploymentRate (%)7.7%Interest Rate (%)8.75%Interest Rate (%)8.75%Population (Millions) 191.481Population (Millions)191.481Campinas At A GlanceConversion 1.72 BRL = 1 US$ RENT/M2/MO US$ NET RENT/SF/YRLow High Low High VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power CenterRegional MallsSolus Food StoresBRL 35.00 BRL 50.00 $ 22.69 $ 32.41 5.5%BRL 25.00 BRL 30.00 $ 16.20 $ 19.44 6.0%BRL 15.00 BRL 20.00 $ 9.72 $ 12.96 6.5%BRL 9.00 BRL 15.00 $ 5.83 $ 9.72 5.5%BRL 9.00 BRL 14.00 $ 5.83 $ 9.07 6.5%BRL 9.00 BRL 16.00 $ 5.83 $ 10.37 6.5%BRL 10.00 BRL 16.00 $ 6.48 $ 10.37 4.0%BRL 3.00 BRL 10.00 $ 1.94 $ 6.48 5.0%BRL 6.00 BRL 12.00 $ 3.89 $ 7.78 6.0%BRL 16.00 BRL 40.00 $ 10.37 $ 25.93 6.0%BRL 18.00 BRL 30.00 $ 11.67 $ 19.44 5.1%BRL 22.00 BRL 32.00 $ 14.26 $ 20.74 5.0%BRL 35.00 BRL 50.00 $ 22.69 $ 32.41 5.0%BRL 22.00 BRL 30.00 $ 14.26 $ 19.44 4.2%DEVELOPMENT LAND Low/Acre High/Acre Low/Acre High/AcreOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidentialN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/ACuritiba At A GlanceConversion: 1.72 BRL = 1 US$ RENT/M 2 /MO US$ RENT/SF/YRLow High Low High VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power CenterRegional MallsBRL 15.00 BRL 23.00 $ 9.72 $ 14.91 5.0%BRL 9.00 BRL 15.00 $ 5.83 $ 9.72 5.5%BRL 7.00 BRL 10.00 $ 4.54 $ 6.48 6.0%BRL 11.00 BRL 18.00 $ 7.13 $ 11.67 5.0%BRL 10.00 BRL 13.00 $ 6.48 $ 8.43 4.5%BRL 9.00 BRL 10.00 $ 5.83 $ 6.48 5.0%BRL 10.00 BRL 16.00 $ 6.48 $ 10.37 4.5%BRL 3.00 BRL 10.00 $ 1.94 $ 6.48 4.5%BRL 6.00 BRL 12.00 $ 3.89 $ 7.78 5.0%BRL 10.00 BRL 18.00 $ 6.48 $ 11.67 4.5%BRL 6.00 BRL 11.00 $ 3.89 $ 7.13 5.0%BRL 7.00 BRL 11.00 $ 4.54 $ 7.13 4.5%BRL 10.00 BRL 14.00 $ 6.48 $ 9.07 3.0%BRL 9.00 BRL 11.00 $ 5.83 $ 7.13 3.0%DEVELOPMENT LAND Low/Acre High/Acre Low/Acre High/AcreOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidentialN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/A2010 Global Market Report ■ www.naiglobal.com 59

Porto Alegre, BrazilRio de Janeiro, BrazilContactNAI CommercialProperties Brazil+1 55 11 5506 5655Country DataAreaGDP Growth (%)8,511,965-0.66%Porto Alegre occupies 497 square kilometers and is locatedin the extreme south of Brazil. Porto Alegre is the capital ofRIo Grande do Sul state and it is in the Southern Region ofthe country. With a population of 1.4 million inhabitants, ithas the highest per capita density and is the fourth mostpopulous city in Brazil.The economy of the city is primarily based on the servicesector, followed by industrial and farming. The high outputof fruits and vegetables makes Porto Alegre the largest ruralzone between the Brazilian capitals. It will be one of the 12headquarters cities for the soccer World Cup in 2014. It willalso be a host city for the 2016 Olympic Games; these twofactors should bring significant infrastructure investment,including improvements in the infrastructure such as newstreets and an expansion of the subway. This should providean impulse to the local economy and increase the activity inthe property market.Several major commercial developments are also underway. The developer, Rossi, is going to invest R $500 millionin the construction of a condominium and commercial complexthat will form a neighborhood planned in the easternportion of the city. Another major construction project, CenterHome Mall, will have more than 60,000 SM of buildings.Located in the Av. Sertório and Assis Brazil, this developmentsolidifies the region as a business and commercial hub.Upon completion it will have 120 shops, a food plaza,service operations and parking for 1,200 cars. Beyond thejobs it generates, it also brings significant improvement tothe infrastructure in the region.ContactNAI CommercialProperties Brazil+1 55 11 5506 5655Country DataAreaGDP Growth (%)8,511,965-0.66%The second largest economy of Brazil, Rio de Janeiro occupiesan area of 1,182 km², has a population of 6,093,472 inhabitantsand is located in the Southeast part of the country.Its industrial areas are utilized primarily by chemical,pharmaceuticals, steel, metallurgy, petroleum, processedfoods, printing and publishing industries. Rio’s main economicsource is tourism—40% of the foreigners that visitBrazil choose Rio de Janeiro as their destination—followedby the services sector and the oil industry.The cautious approach that most companies, builders anddevelopers had has now been replaced with optimism. Manycompanies are now looking to expand, and investors havereturned to inject capital into the economy. In the officemarket, the high-end product did not suffer from the globaleconomic malaise, primarily due to the low vacancies thatalready existed. The class-A building towers completedduring the last few months are, by all accounts, leasing well.In Barra da Tijuca, the newest and most desirable area, theactivity is even higher due to the completion of numerousbuildings and the expected completion of several more.Rental rates have remained stable, also as a consequence ofthe low vacancy. The rental of retail space in Rio de Janeirois very active due to the strong presence of corporate usersand the city’s diverse tourist areas that attract foreignersand Brazilians. The Southeast area of Brazil is the mostimportant region for industrial operations. The Rio de Janeiroindustrial inventory and average pricing remained relativelystable during 2009.Rio de Janeiro is expected to get a major economic boostfrom infrastructure improvements and investments resultingfrom its selection as the host city for the 2016 SummerOlympics.GDP 2008 (US$ B)$1,481.55GDP 2008 (US$ B)$1,481.55GDP/Capita (USD)$7,737.32GDP/Capita (USD)$7,737.32Inflation Rate (%)4.85%Inflation Rate (%)4.85%UnemploymentRate (%)7.7%UnemploymentRate (%)7.7%Interest Rate (%)8.75%Interest Rate (%)8.75%Population (Millions)191.481Population (Millions)191.481Porto Alegre At A GlanceConversion 1.72 BRL = 1 US$ RENT/M2/MO US$ NET RENT/SF/YRLow High Low High VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power CenterRegional MallsSolus Food StoresBRL 13.00 BRL 20.00 $ 8.43 $ 12.96 4.5%BRL 16.00 BRL 18.00 $ 10.37 $ 11.67 5.0%BRL 7.00 BRL 14.00 $ 4.54 $ 9.07 5.0%BRL 12.00 BRL 18.00 $ 7.78 $ 11.67 5.5%BRL 10.00 BRL 16.00 $ 6.48 $ 10.37 4.0%BRL 7.00 BRL 12.00 $ 4.54 $ 7.78 5.0%BRL 9.00 BRL 15.00 $ 5.83 $ 9.72 3.5%BRL 9.00 BRL 10.00 $ 5.83 $ 6.48 3.0%BRL 9.00 BRL 12.00 $ 5.83 $ 7.78 3.5%BRL 10.00 BRL 16.00 $ 6.48 $ 10.37 4.0%BRL 11.00 BRL 14.00 $ 7.13 $ 9.07 3.5%BRL 11.00 BRL 16.00 $ 7.13 $ 10.37 3.0%BRL 14.00 BRL 16.00 $ 9.07 $ 10.37 3.0%BRL 11.00 BRL 14.00 $ 7.13 $ 9.07 2.5%DEVELOPMENT LAND Low/Acre High/Acre Low/Acre High/AcreOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidentialN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/ARio de Janeiro At A GlanceConversion1.72 BRL = 1 US$ RENT/M2/MO US$ NET RENT/SF/YRLow High Low High VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power CenterRegional MallsSolus Food StoresBRL $ 80.00 BRL $ 150.00 $ 51.85 $ 97.22 1.0%BRL $ 70.00 BRL $ 140.00 $ 45.37 $ 90.74 1.4%BRL $ 60.00 BRL $ 100.00 $ 38.89 $ 64.82 1.9%BRL $ 80.00 BRL $ 140.00 $ 51.85 $ 90.74 1.0%BRL $ 70.00 BRL $ 140.00 $ 45.37 $ 90.74 5.5%BRL $ 60.00 BRL $ 100.00 $ 38.89 $ 64.82 9.7%BRL $ 11.00 BRL $ 18.00 $ 7.13 $11.67 6.5%BRL $ 11.00 BRL $ 15.00 $ 7.13 $9.72 7.0%BRL $ 12.00 BRL $ 18.00 $ 7.78 $11.67 6.5%BRL $ 80.00 BRL $ 250.00 $ 51.85 $ 162.04 9.0%BRL $ 40.00 BRL $ 100.00 $ 25.93 $ 64.82 7.5%BRL $ 80.00 BRL $ 250.00 $ 51.85 $ 162.04 8.5%BRL $ 1 50.00 BRL $ 400.00 $ 97.22 $ 259.26 7.0%BRL $ 150.00 BRL $ 350.00 $ 97.22 $ 226.85 7.5%DEVELOPMENT LAND Low/Acre High/Acre Low/Acre High/AcreOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidentialN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/A2010 Global Market Report ■ www.naiglobal.com 60

Sao Paulo, BrazilSantiago, ChileContactNAI CommercialProperties Brazil+1 55 11 5506 5655Country DataAreaGDP Growth (%)GDP 2008 (US$ B)GDP/Capita (USD)Inflation Rate (%)756,950-1.74%$150.36$8,852.962.04%São Paulo is located in the southeast region of Brazil andoccupies an area of approximately 1,523 square kilometers.It is one of the most important mercantile, corporate andfinancial centers of Latin America. São Paulo is the largestcity in the country and the most globally influential Braziliancity. The city of São Paulo has 11 million inhabitants, and ifthe entire metropolitan region is considered, the populationgrows to 22 million inhabitants.The high growth rate that occurred during 2008 was notrepeated in 2009. However, the market continues to grow ata solid pace. Due to the presidential elections that will occurin 2010, the pace of the construction has been acceleratedon the southern stretch of the "Rodoanel Mario Covas," ringroad for political reasons. Given this unexpected push, theanticipated delivery date of this logistically important road isnow early 2010.The office inventory continues to grow and developers in theregion are beginning to offer Class A office property in modularcondominiums and Build to Suits. However, availability ofhigh quality industrial property still is insufficient to meet thestrong demand, keeping the vacancy rates low and pricesstable and high. The retail market suffered less than othersectors, mainly due to the low availability and the continuedhigh demand throughout the year. Its outlook is expectedto be strong for the near term; especially in the shoppingcenters and supermarkets.The office market did feel some effects of the crisis withdecreasing demand starting in early 2009. At present, asa result of the government’s ad hoc national economicmeasures, a return to increased activity in the real estatemarket is already on the horizon. Companies are back lookingto expand. And both Brazilian and international investorshave returned to inject their capital into the economy.The economic setting present today in Brazil is unprecedented.The general feeling is that as availability of creditimproves Brazil will be able to foment an expansion neverseen before. The changes will be visible mainly in fourprincipal areas: capital, infrastructure, retail and real estate.ContactNAI Sarra+56 2 347 7000Country DataAreaGDP Growth (%)GDP 2008 (US$ B)GDP/Capita (USD)Inflation Rate (%)756,950-1.74%$150.36$8,852.962.04%Chile has a dynamic market-oriented economy characterizedby a high level of foreign trade. Chile’s economy is based onthe export of minerals, mainly cooper, which accounts forabout half of the total value of exports. Other fast growingsectors are agriculture (fruits and cereals), cellulose, salmonand wine exports. Major developments are expected in theextraction of gold, since more than three high-grade golddeposits were discovered recently.The office market has experienced major growth. In the last12 months a total of 14 Class A office buildings entered themarket, increasing Santiago office stock by 7% and reachinga total inventory of 1.6 million SM. Vacancy rates haveshown an upward trend, due to the large amount of projectsthat entered the market during Q3 2009. Vacancy levelsreached 5.75% for Class A office buildings. In the next 24months we expect explosive growth of 456,000 SM of ClassA office space.Lease and sale rates have maintained stable levels. Theaverage leasing rate in the Santiago CBD is US $24/SM.Strip centers have become very popular in the last five yearswith a projected investment of US $500 million in the nearfuture by the main player in this area. Lease rates in themost popular retail zones in downtown Santiago havereached US $190/SM/month. In these areas there is virtuallyno space available.Industrial supply has grown, especially the number ofindustrial parks. Prices have not significantly changed during2009. The average sale value for land in industrial parks isUS $120/SM. Investment returns have stabilized between7-9% for office, 9-11% for retail and 11-12% for industrial.Chile is regarded as the first economy in the region likely tobounce back in 2010 from the current economic downturn,and its economy is already showing signs of recovery afterthe economic slump. A favorable scenario for the real estatemarket is forecasted in 2010.UnemploymentRate (%)10.20%UnemploymentRate (%)10.20%Interest Rate (%)0.50%Interest Rate (%)0.50%Population (Millions) 16.984Population (Millions)16.984Sao Paulo At A GlanceConversion 1.72 BRL = 1 US$ RENT/M2/YR US$ NET RENT/SF/YRLow High Low High VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power CenterRegional MallsSolus Food StoresBRL 75.00 BRL 110.00 $ 48.61 $ 71.30 4.3%BRL 70.00 BRL 100.00 $ 45.37 $ 64.82 5.5%BRL 50.00 BRL 90.00 $ 32.41 $ 58.33 6.1%BRL 55.00 BRL 65.00 $ 35.65 $ 42.13 5.0%BRL 52.00 BRL 62.00 $ 33.70 $ 40.19 5.5%BRL 50.00 BRL 60.00 $ 32.41 $ 38.89 10.2%BRL 18.00 BRL 25.00 $ 11.67 $ 16.20 2.0%BRL 16.00 BRL 18.00 $ 10.37 $ 11.67 5.0%BRL 16.00 BRL 22.00 $ 10.37 $ 14.26 3.0%BRL 20.00 BRL 180.00 $ 12.96 $ 116.67 5.0%BRL 50.00 BRL 100.00 $ 32.41 $ 64.82 8.0%BRL 60.00 BRL 150.00 $ 38.89 $ 97.22 6.0%BRL 150.00 BRL 400.00 $ 97.22 $ 259.26 8.0%BRL 100.00 BRL 200.00 $ 64.82 $ 129.63 6.0%DEVELOPMENT LAND Low/Acre High/Acre Low/Acre High/AcreOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidentialN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/ASantiago At A GlanceRENT/M 2 /YRUS$ RENT/SF/YRLow High Low High VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)CLP$ 147,851CLP$ 122,792CLP$ 105,250N/AN/ACLP$CLP$CLP$197,970145,345125,298N/AN/A$ 25.16$ 20.89$ 17.91N/AN/A$$$33.6824.7321.32N/AN/A4.0%5.8%2.0%N/AN/AClass B (Secondary)INDUSTRIALCLP$ 85,202 CLP$ 98,985 $ 14.50 $ 16.84 13.5%Bulk WarehouseManufacturingHigh Tech/R&DRETAILCLP$CLP$CLP$15,03517,54130,071CLP$CLP$CLP$25,05922,55339,343$$$2.562.985.12$$$4.263.846.696.5%3.5%5.0%DowntownCLP$ 250,596 CLP$ 1,252,980 $ 42.64 $ 213.20 N/ANeighborhood Service Centers CLP$ 200,476 CLP$ 300,712 $ 34.11 $ 51.17 4.00%Community Power CenterRegional MallsCLP$ 30,071N/ACLP$ 37,589N/A$ 5.12N/A$ 6.40N/A4.00%N/ASolus Food StoresCLP$ 37,589 CLP$ 62,649 $ 6.40 $ 10.66 N/ADEVELOPMENT LAND Low/M 2 High/M 2 Low/M 2 High/M 2Office in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidentialCLP$ 392,600 CLP$ 584,724 $ 66.80 $ 99.49CLP$ 208,830 CLP$ 261,037 $ 35.53 $ 44.42CLP$ 52,207 CLP$ 83,532 $ 8.88 $ 14.21CLP$ 20,883 CLP$ 125,298 $ 3.55 $ 21.32CLP$ 208,830 CLP$ 417,660 $ 35.53 $ 71.07CLP$ 104,415 CLP$ 229,713 $ 17.77 $ 39.092010 Global Market Report ■ www.naiglobal.com 61

San Jose, Costa RicaKingston, JamaicaContactNAI Costa Rica+ 506 2228 7760Country DataAreaGDP Growth (%)GDP 2008 (US$ B)GDP/Capita (USD)Inflation Rate (%)UnemploymentRate (%)Interest Rate (%)Population (Millions)1,972,550-1.30%$29.29$6,361.308.37%4.90%9.00%4.605Like most markets, Costa Rica felt the impact of the financialworld crisis. Almost immediately affected was the tourismsector which generated our own internal crisis in the pacificcoast due to the considerable reduction in the flow oftourists which had a negative impact on all industriessupported by tourism. The investment in on going projectsas well as projects ready to break ground, stagnated due toa near total credit restriction.The office market is beginning to experience a higherabsorption rate with almost 50,000 SM, also approximately20,000 SM of new projects came into the market increasingthe inventory and several international companies arrivedleasing new spaces. A good sign of recover is the reductionin the vacancy rate from 12% in Q3 to the current 8%. Therewas a 3% increase in inventory from 724,955 SM to745,469 SM. According to our projections, the office marketcould expect a considerable recovery by mid 2010, returningto its normal behavior, where supply and demand workshand in hand with the growth of the economy.The retail market is still realizing positive demand. Insidethe malls, occupancy and pricing has remained stable. Atthe strip and neighborhood centers, occupancy is lower,with some retailers having closed or changed locations toless expensive sites. However, this market continues togrow quickly.On the industrial side, exportation decreased in the lastquarter. Absorption is lower, but the development of newspace is more controlled than in other markets. The FTZ’shave been receiving interest from and negotiating with, morecompanies and are expected to welcome around 20 internationalcompanies in the next 18 months, creating a goodopportunity in the marketplace.In 2009 the most significant transactions were: Forum II with8000 SM, Plaza Roble with 6000 SM, Zona Franca de Estewith 11100 SM and Zona Franca America with 4000 SM.ContactNAI Jamaica+1 876 925 7861Country DataAreaGDP Growth (%)GDP 2008 (US$ B)GDP/Capita (USD)Inflation Rate (%)UnemploymentRate (%)Interest Rate (%)13,940-3.61%$11.92$4,397.489.43%11.00%19.00%Population (Millions) 2.711The Jamaican property market has suffered less than manyof the developed overseas markets. The banking systemremains strong with no significant fallout or failures. Growthin the property sector has been restricted mainly bythe Government decision to initially raise interest rates inresponse to the global crisis. Currently, interest rates arefalling, but benchmark rates are still in the high teens.Higher mortgage rates, particularly in the residential sector,have stifled the market.There remains a shortage of quality office units withadequate parking facilities. Little new space has been builtin recent years as development costs for new buildings haveexceeded the developed value. The situation is changingand, currently a number of developers are seeking sitesto develop. Local planning regulations are insisting onadequate parking for staff and clients, which adds a newelement to development costs. Actual rental rates obtainedby landlords are somewhat capped due to the high monthlymaintenance charges, which can be higher than rentals.Electricity and security costs are the main factor in this cost.Office yields have risen from around 9% over a year agotowards 12%, currently. Rental levels remain firm.The only activity in the industrial market has been a smallnumber of large owner-occupier developments, mainly inthe warehousing and distribution sectors. Rental demandfor units in the more desirable areas (for staff andcustomers) often dictates rental levels. Such spaceover10,000 SF is limited.There has been little new expansion in the retail market.Fallout, with the reduction in retail activity, has been minimal.Yields in this market tend to follow the office market. Newdevelopment in the resort market has been virtually nonexistentthis yearThe main factors governing desirability of property inJamaica is the location in relation to the areas perceived asunsafe for staff and customers. Areas of the main cities arewell defined with distinct value levels.San Jose At A GlanceConversion: 550 COL = 1 US$ RENT/M 2 /MO US$ RENT/SF/YRLow High Low High VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALN/ACOL 111,360COL 69,600COL 139,200COL 111,360COL 69,600N/ACOL 125,280COL 111,360COL 180,960COL 174,000COL 139,200N/A$ 17.84$ 11.15$ 22.30$ 17.84$ 11.15$$$$$N/A20.0717.8428.9927.8722.30N/A24.0%7.0%3.0%8.0%8.0%Bulk WarehouseCOL 27,840 COL 69,600 $ 4.46 $ 11.15 12.0%ManufacturingCOL 31,320 COL 45,240 $ 5.02 $ 7.25 4.0%High Tech/R&DRETAILCOL 24,360 COL 34,800 $ 3.90 $ 5.57 1.0%DowntownCOL 55,680 COL 153,120 $ 8.92 $ 24.53 9.7%Neighborhood Service CentersCommunity Power CenterCOL 69,600COL 76,560COL 180,960COL 208,800$ 11.15$ 12.26$$28.9933.443.6%0.8%Regional MallsCOL 160,080 COL 236,640 $ 25.64 $ 37.90 N/ASolus Food StoresCOL 41,760 COL 76,560. $ 6.69 $ 12.26 1.1%DEVELOPMENT LAND Low/M 2 High/M 2 Low/SF High/SFOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidentialN/A N/A N/A N/AN/A N/A N/A N/AN/A N/A N/A N/AN/A N/A N/A N/AN/A N/A N/A N/AN/A N/A N/A N/AKingston At A GlanceConversion: 89 J$ = 1 US$ RENT/M 2 /MO US$ RENT/SF/YRLow High Low High VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICEJ $J$N/A484.00242.00N/AJ $ 807.00J $ 484.00$$N/A6.063.03$$N/A10.116.06N/AN/AN/ANew Construction (AAA)Class A (Prime)J $ 1,130.00J $ 1,130.00J $ 1,453.00J $ 1,453.00$ 14.15$ 14.15$$18.2018.20N/AN/AClass B (Secondary)INDUSTRIALJ $ 969.00 J $ 1,130.00 $ 12.14 $ 14.15 N/ABulk WarehouseManufacturingJ $J $404.00404.00J$J$969.00969.00$$5.065.06$$12.1412.14N/AN/AHigh Tech/R&DRETAILDowntown (High Street Shops)Neighborhood Service CentersCommunity Power Center (Big Box)J $N/A807.00N/AN/AJ $ 1,130.00J $ 1,453.00N/AN/AN/A$ 10.11N/AN/A$$14.1518.20N/AN/AN/AN/AN/AN/ARegional MallsSolus Food StoresDEVELOPMENT LANDJ$ 1,211.00N/ALow/ M 2 J$ 1,776.00N/AHigh/M 2 $ 15.17N/ALow/SF$ 22.25N/AHigh/SFN/AN/AOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidentialJ $ 12.00 J $ 30.00 $ 0.13 $ 0.34J $ 12.00 J $ 20.00 $ 0.13 $ 0.22J $ 5.00 J $ 8.00 $ 0.06 $ 0.09J $ 10.00 J $ 13.00 $ 0.11 $ 0.15J $ 10.00 J $ 13.00 $ 0.11 $ 0.15J $ 6.00 J $ 15.00 $ 0.07 $ 0.172010 Global Market Report ■ www.naiglobal.com 62

Ciudad Juarez, Chihuahua, MexicoGuadalajara, MexicoContactNAI Mexico+1 619 690 3029Country DataAreaGDP Growth (%)GDP 2008 (US$ B)GDP/Capita (USD)Inflation Rate (%)UnemploymentRate (%)1,972,550-7.34%$866.34$8,040.245.43%6.06%Juarez is the largest city in Chihuahua, with a population of2 million inhabitants. It is located across from El Paso, Texas,and has been a destination for foreign manufacturing sincethe 1960s. Manufacturing facilities known as “maquiladoras”drive the economy. Of Mexico’s foreign manufacturingplants, 90% are situated along the US-Mexico border and33% are found in Juarez.Approximately 330 registered maquiladora operations arelocated in Juarez, employing more than 200,000 people.Juarez is home to companies such as Philips, Thomson, GM,Electrolux, Yazaki, Foxconn, Lear, Johnson & Johnson, GEMedical, Johnson Controls, Delphi and Ford.At the outset of 2010, the market is expected to changefrom a landlords’ market to at tenants’ market with thistrend continuing into 2011. Early signs of expansion werenoted by the end of 2009 with another wave of projects onthe horizon.At the outset of 2010, only one new industrial facility isunder construction. The global economic crisis during 2009slowed investment by manufacturers and as demand fell sodid lease rates. Juarez vacancy rates rose for the first timeto over 10%. As a result, lease rates fell by about 20-30%and developer incentives, such as free rent, were noted.The office market remains flat. The limited amount of ClassA space is occupied by local firms, government agenciesand global service providers with regional operations. Activitywas slower with lease rates falling and vacancies risingin the range of 10-20% during 2009. Overall rates arepredicted to remain stable during 2010.US retailers such as Costco, Wal-Mart, Sam's, Auto Zoneand Home Depot are following Mexican retailers into themarket and prospects for 2010 are improving.Juarez’s critical mass of industrial firms, proximity to all USmarkets and a 50-year history with foreign manufacturersensure the future will be bright. Most believe 2010 will bea rebound year with increased activity by the second halfand continuing in force through 2012 and beyond.ContactNAI Mexico+1 619 690 3029Country DataAreaGDP Growth (%)GDP 2008 (US$ B)GDP/Capita (USD)Inflation Rate (%)UnemploymentRate (%)1,972,550-7.34%$866.34$8,040.245.43%6.06%As Mexico’s second-largest city, Guadalajara has managedto modernize without seriously altering its centuries old cityplan or endangering the quality of life of its inhabitants.Guadalajara is known as the "Silicon Valley of Mexico” withthe establishment of multinational technology firms such asIBM, HP, Foxxcon, Flextronics, SCI-Sanmina and Freescale.Most of the new office projects initiated during 2008 and2009 are expected to reach the market in late 2010 due toslowed construction by most developers. New projects in2010 will include Class A+ (AAA) buildings in Puerta deHierro and Americas-Country corridor. The majority of demandis from Mexican national firms; however, multinational companiesare also securing space from 1,500 to 10,000 SF. Officemarket vacancy in Class B buildings is projected to average20-25%. Nevertheless, finding buildings with 10,000 SF continuousis challenging.Guadalajara has become a destination market for majorindustrial developers. Aggressive promotion has nearlydoubled the city’s industrial base during the past fouryears. Industrial land and facility rental rates are expensivein Guadalajara. Sale prices range from $80-$150/SM,ranking Guadalajara among the most expensive areas inMexico. Lease rates for assembly and manufacturing spaceare above Mexico’s national average. During 2009, demandhas been flat and lease rates did not increase, resultingin landlords continuing to experience excess inventoriesduring 2010. Guadalajara will remain a “tenants’ market”during 2010.The retail sector in Guadalajara experienced decreasedvacancy in 2009 and it is projected to continue throughout2010. Convenience stores such as Oxxo, 7 Eleven andWaldo’s are seeking both in-line and pad sites. Retail spacerates and land values remained flat in most commercialsubmarkets during 2009.Guadalajara remains a core market in central Mexico with astrong mix of foreign and national firms active in the market.Projections are positive with sharp increases in demandforecast for Q3 and Q4 2010.Interest Rate (%)4.50%Interest Rate (%)4.5%Population (Millions)107.75Population (Millions)107.75Juarez At A GlanceRENT/SF/YRDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power CenterRegional MallsLow High Effective Avg. Vacancy$ 12.00 $ 17.00 $ 14.50 N/A$ 9.00 $ 13.00 $ 11.00 8.0%$ 8.00 $ 10.00 $ 8.75 20.0%$ 12.00 $ 17.00 $ 14.50 15.0%$ 9.00 $ 13.00 $ 11.00 10.0%$ 8.00 $ 10.00 $ 8.75 20.0%$ 3.30 $ 4.00 $ 3.60 11.5%$ 4.00 $ 6.00 $ 4.80 11.5%N/A N/A N/A N/A$ 15.00 $ 20.00 $ 13.00 N/A$ 10.00 $ 12.00 $ 9.50 27.5%N/A N/A N/A N/AN/A N/A N/A N/AGuadalajara At A GlanceDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power CenterRegional MallsRENT/SF/YRLow High Effective Avg. VacancyN/A N/A N/A N/A$ 10.37 $ 15.55 N/A 20.0%$ 8.29 $ 10.37 N/A 25.0%$ 23.41 $ 27.87 N/A N/A$ 19.50 $ 21.18 N/A 20.0%N/A N/A N/A N/A$ 4.15 $ 5.18 N/A 9.0%$ 5.18 $ 6.82 N/A 8.0%$ 11.15 $ 16.72 N/A 2.0%$ 15.00 $ 20.00 N/A 7.0%$ 15.00 $ 20.00 N/A 8.0%$ 15.00 $ 20.00 N/A 2.0%$ 20.00 $ 50.00 N/A 15.0%DEVELOPMENT LAND Low/SF High/SFOffice in CBDN/AN/ALand in Office Parks$ 5.57 $ 180.00Land in Industrial ParksOffice/Industrial Land - Non-park)Retail/Commercial LandResidential$$3.25N/A$7.459.00$$$50.00N/A24.0019.00DEVELOPMENT LAND Low/M 2 High/M 2Office in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidential$$$$$$700.00250.0080.00100.00350.00250.00$$$$$$1,500.00500.00150.00300.00800.00750.0063 2010 Global Market Report ■ www.naiglobal.com 63

Guanajuato, Guanajuato, MexicoContactNAI Mexico+1 619 690 3029Country DataAreaGDP Growth (%)GDP 2008 (US$ B)GDP/Capita (USD)Inflation Rate (%)UnemploymentRate (%)Interest Rate (%)1,972,550-7.34%$866.34$8,040.245.43%6.06%4.5%Population (Millions) 107.75Guanajuato At A GlanceDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power CenterRegional MallsThe city of Guanajuato has approximately 5 million inhabitantsand is located in the area of Mexico known as “ElBajio.” Guanajuato is centrally located in Mexico with fiveneighboring states: Jalisco to the west, San Luis Potosi andZacatecas to the south, Queretaro to the east and Michoacanto the north.Guanajuato is at the crossroads of two major industrialcorridors: Highway 45 (The Pan American Highway)and Highway 57 (the NAFTA Highway), which links SouthAmerica, Mexico and North America. Multimodal capabilitiesare available in several locations. Guanajuato also hosts theonly intersection of the Kansas City and Ferromex railroadsin Mexico. Major corporations based in Guanajuato includeGM, American Axle, Colgate Palmolive, Flex-n Gate, Fiberweb,Avon, Faurecia, Hino Motors, Getrag Ford, Flexi and Hella.Completed transactions during 2009 included Hino Motors(Automotive), Samot (Metal Mecanic) and Teco Westinghouse(Power Solutions), all of them build-to-suit projects.Vacancy rates during 2009 decreased from 10.14% to9.8% as a result of the lease of “Pisa Company” and “TLG”in Castro Del Rio Industrial Park and the delivery of 247,572SF of build-to-suit projects in Santa Fe Industrial Park.Guanajuato’s office market is small and most space iscomposed of low rise, garden office type projects that hostMexican local firms and global service providers. Lease ratesand land values are steady and not projected to rise during2010.The retail sector consists of large multi-tenant shoppingcenters located in middle and low income areas such asPlaza El Suez. Lease rates and land value are expected toremain stable through 2010.Guanajuato’s unique central location in Mexico and itsposition at the crossroads of the nation’s two largest raillines and highways position it to become a major tradecorridor into North America for many years to come.RENT/SF/YRLow High Effective Avg. VacancyN/A N/A N/A N/A$ 9.60 $ 12.86 $ 11.23 12.0%$ 4.40 $ 8.76 $ 6.58 12.0%N/A N/A N/A N/A$ 7.48 $ 14.57 $ 11.02 4.0%$ 4.33 $ 8.68 $ 6.50 4.0%$ 3.48 $ 4.40 $ 3.94 9.8%$ 4.35 $ 4.70 $ 4.52 9.8%N/A N/A N/A N/A$ 13.50 $ 24.25 $ 18.87 N/A$ 15.90 $ 27.50 $ 21.70 N/AN/A N/A N/A N/A$ 15.50 $ 33.37 $ 24.43 N/ADEVELOPMENT LAND Low/M 2 High/M 2Office in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidential$$$$N/AN/A25.0022.00100.00150.00$$$$N/AN/A37.0033.00300.00500.00Mexico City, MexicoContactNAI Mexico+1 619 690 3029Country DataAreaGDP Growth (%)GDP 2008 (US$ B)GDP/Capita (USD)Inflation Rate (%)UnemploymentRate (%)Interest Rate (%)1,972,550-7.34%$866.34$8,040.245.43%6.06%4.5%Population (Millions) 107.75Mexico City At A GlanceRENT/M 2 /MOUS$ RENT/SF/YRLow High Low High VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)$$24.0018.00$$40.0024.00$ 26.76$ 20.07$ 44.59$ 26.7610.0%20.0%Class B (Secondary)SUBURBAN OFFICE$ 8.00 $ 15.00 $ 8.92 $ 16.72 35.0%New Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIAL$$$20.0015.0010.00$$$25.0020.0016.00$ 22.30$ 16.72$ 11.15$ 27.87$ 22.30$ 17.8430.0%35.0%25.0%Bulk WarehouseManufacturingHigh Tech/R&DRETAIL$$$4.004.005.00$$$6.007.007.00$$$4.464.465.57$$$6.697.807.8016.0%15.0%20.0%Downtown (High Street Shops)Neighborhood Service CentersCommunity Power Center (Big Box)Regional MallsSolus Food Stores$$$$12.0018.0025.0035.00N/A$$$$50.0026.0040.0040.00N/A$ 13.38$ 20.07$ 27.87$ 39.02N/A$ 55.74$ 28.99$ 44.59$ 44.59N/A15.0%20.0%12.0%20.0%N/ADEVELOPMENT LAND Low/ M 2 High/M 2 Low/SF High/SFOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidentialMexico City, the capital of Mexico, is located in South-CentralMexico and has over 23 million inhabitants. Mexico Cityis often seen as the first stop for foreign investors interestedin development, industrial, retail and office investments. In2008, Mexico joined the group of top 12 economies in theworld ($1 trillion GDP), maintains an investment grade ratingand is the eighth largest world exporter.Mexico City is host to major corporate headquarters from avariety of global sectors. National firms with headquarters inMexico City include Grupo Modelo, Grupo Carso, Telmex,DESC, GICSA and BIMBO. Automotive firms include GM,Ford, Volkswagen, Nissan, Honda and Chrysler. Most multinationalslike Coca Cola, Pepsi, Honeywell, Siemens,Motorola, USG, IBM, HP, Samsung, Sony, INTEL, LG, P&Gand Wal-Mart maintain headquarters in Mexico City.Mexico City and Toluca encompass more than 17 millionSM of industrial land. At the end of 2009, the largestvacancy among the main industrial submarkets in theMexico City metro area was registered in Cuautitlan with20% of the total industrial inventory. Recent developmentsinclude Tlalnepantla, Toluca-Lerma and now Huehuetoca.Lease rates and land values have not fallen and areexpected to remain unchanged during 2010.The retail sector cooled rapidly during 2009 althoughAmway, Wal-Mart, Costco, Home Depot, Best Buy and otherbig box retailers experienced some growth, even under thenegative economic conditions. However, the rate of expansionfor these retailers decreased across the board.Investors are now looking for stand-alone sites, strip centersand anchored retail centers for 2010.Office market vacancies were under 10% in 2009 due tohigh demand from the number of companies seeking officespace and limited inventory due to the lack of new buildingson the market. New construction projected for late 2009has been delayed and only those buildings with over 80%completion are being finalized. Lease rates are running from$24-$40/SM per month. In general, the Mexico City officemarket remains strong and a constant demand for productpromises a robust market for 2010.Mexico City will continue to be a first stop for foreign investors.Its critical mass, domestic market demand and positionas a place for Latin American regional headquartersensure continued growth and a positive forecast for 2010and beyond. Mexico City will remain a global destination forboth corporate users and investors for many years to come.$ 1,280.00 $ 3,000.00 $ 118.91 $ 278.71$ 408.00 $ 878.00 $ 37.90 $ 81.57$ 60.00 $ 243.00 $ 5.57 $ 22.58$ 100.00 $ 325.00 $ 9.29 $ 30.19$ 215.00 $ 690.00 $ 19.97 $ 64.10$ 265.00 $ 560.00 $ 24.62 $ 52.032010 Global Market Report ■ www.naiglobal.com 64

Matamoros, Tamaulipas, MexicoMexicali, Baja California, MexicoContactNAI Mexico+1 619 690 3029Country DataAreaGDP Growth (%)GDP 2008 (US$ B)GDP/Capita (USD)Inflation Rate (%)1,972,550-7.34%$866.34$8,040.245.43%Matamoros is an important maquiladora center with over65,000 workers in approximately 140 plants. Major sectorsfor industrial export range from heavy steel products tometal mechanics, automotive and electronic products.Besides proximity to Brownsville, Texas, it is located on themajor trade corridor serving the Midwest and Eastern US.During 2009, industrial lease rates fell 10-20% for Class Band C facilities. Shell rates averaged $0.36/SF/month.During 2010, tenants should experience a “tenants’ market”and receive additional incentives for free rent and time toretrofit space.2009 reflected the same fall in demand and consolidationin Matamoros as the rest of the Mexican industrial markets.Delphi placed three facilities of 700,000 SF on the marketat the end of 2009. New projects included Hilti, Inteva, Tycoand Core. More demand will occur in 2010 due to projectedexpansions from existing operations. Industrial land valuesremained consistent during 2009 with asking prices rangingfrom $30-$40/SM. No change is expected for 2010.Matamoros’ office market is primarily composed of smallprojects hosting local service industries. Only one smalloffice building was constructed during 2009 in the downtownarea. The outlook for the office market in 2010 projectsrates will remain the same and demand will be generatedfrom local and regional operations.Retail centers in Matamoros host a blend of domestic brandswith a mix of US franchisees and big box operations. Thegrowth in 2008 and 2009 has been limited to theexpansion of Mexican retailers (Soriana, Coppel, Home Mart,SMart) with the exception of HEB and Sam’s Club. 2010lease rates and land prices are expected to remain the same.Matamoros’ unique location on the NAFTA Highway, itsborder location, strong industrial tradition and ability to shipovernight to much of the US make it a destination for foreignfirms to locate new projects in Mexico. The long term outlookis very favorable through 2010 and beyond.ContactNAI Mexico+1 619 690 3029Country DataAreaGDP Growth (%)GDP 2008 (US$ B)GDP/Capita (USD)Inflation Rate (%)1,972,550-7.34%$866.34$8,040.245.43%Mexicali, a thriving metropolitan area with 900,000 residents,is the capital of Baja California and home to approximately200 maquiladora operations. Mexicali is an industrial centerwith a high work ethic, which has been a contributing factorin the relocation of more than 100 new manufacturing companiesto Mexicali from 1996 to 2009.Industrial activity was slow during 2009. Crystal automotiveassumed Fleetwood’s 100,000 SF facility, Newell Rubbermaidexpanded its operation, Global Logistics relocated to alarger building with 62,000 SF and Judco Manufacturingpurchased the 40,000 SF. LG Innotek facility. La Modernafrom Central Mexico acquired land in Ejido Pueblo for pastaproduction and Fabrica de Papel San Francisco purchasedland for its distribution center.During 2009, several firms consolidated to other markets,including Sony, LG Electronics, Mag Technology, KwangSung, Starion, and Kyomex. During 2009, Silicon BorderScience Park was selected by Q-Cells, the world’s largestsolar cell manufacturer for its $3.5 billion project.Prices for industrial land have remained flat since thepurchase of large development tracts by ThompsonElectronics and Alen Industries. Industrial lease rates will remainflat and competitive for 2010.The office market is small with most office projects no largerthan three stories and located in one of three commercialcorridors in the city. During 2009, construction began forthe three-story “Solarium Building.” Most retail centers aresmall strip or food and drug anchored neighborhood centers.Lease rates are expected to remain flat during 2010 andMexicali is expected to remain a destination for nationalretailers and new US firms entering the market.Mexicali holds a unique position on the Mexican border withovernight drive times to most Western US markets. Itsindustrial culture, abundant water and natural gas supplywill help to maintain it as a destination for foreign operationsthrough 2010 and many years to come.UnemploymentRate (%)6.06%UnemploymentRate (%)6.06%Interest Rate (%)4.5%Interest Rate (%)4.5%Population (Millions) 107.75Population (Millions) 107.75Matamoros At A GlanceDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power CenterRegional Malls(Rent/SF/YR)Low High Effective Avg. Vacancy$ 8.40 $ 18.00 $ 12.00 20.0%$ 6.00 $ 8.40 $ 8.40 30.0%$ 2.40 $ 6.00 $ 4.80 30.0%$ 8.40 $ 18.00 $ 12.00 10.0%$ 6.00 $ 8.40 $ 8.40 10.0%$ 2.40 $ 6.00 $ 4.80 10.0%$ 3.84 $ 4.56 $ 4.56 10.0%$ 4.56 $ 6.00 $ 5.76 N/A$ 6.00 $ 6.60 $ 6.36 N/A$ 11.40 $ 14.40 $ 12.96 15.0%$ 8.40 $ 9.60 $ 9.00 30.0%$ 11.16 $ 12.00 $ 11.64 20.0%$ 9.60 $ 10.80 $ 10.20 10.0%Mexicali At A Glance(Rent/SF/YR)DOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power CenterRegional MallsLow High Effective Avg. VacancyN/A N/A N/A N/A$ 12.00 $ 21.60 $ 10.80 14.0%$ 3.60 $ 10.00 $ 6.00 10.0%N/A N/A N/A N/AN/A N/A N/A N/AN/A N/A N/A N/A$ 3.36 $ 4.32 $ 3.84 6.0%$ 4.08 $ 5.52 $ 5.28 8.0%N/A N/A N/A N/A$ 3.60 $ 6.00 $ 4.80 3.0%$ 6.00 $ 7.20 $ 6.60 10.0%N/A N/A N/A N/A$ 8.40 $ 16.00 N/A 4.0%DEVELOPMENT LAND Low/Acre High/AcreOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidential$$$$N/AN/A100,000.0075,000.0095,000.00140,000$$$$N/AN/A160,000.0090,000.00140,000.00200,000DEVELOPMENT LAND Low/Acre High/AcreOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidential$$$$$283,400.00N/A101,215.0080,972.00202,429.00485,830.00$$$$$607,287.00N/A202,409.00182,186.00607,287.00931,174.002010 Global Market Report ■ www.naiglobal.com 65

Monterrey, Nuevo Leon, MexicoQuerétaro, Querétaro, MexicoContactNAI Mexico+1 619 690 3029Country DataAreaGDP Growth (%)GDP 2008 (US$ B)GDP/Capita (USD)Inflation Rate (%)1,972,550-7.34%$866.34$8,040.245.43%Monterrey, Nuevo Leon is located in North Central México,140 miles southwest of Laredo, Texas. It is the third largestmetropolitan area in Mexico, with a population of approximately4.5 million. An industrial city with a 100-yearoperating history, it is sometimes referred to as the Chicagoof Mexico.Monterrey is well positioned as the major industrial marketin Northeast Mexico. It is host to many multinationalcorporations such as BASF, Carplastics, Brachs, Caterpillar,Daewoo, Denso, GE, JCI, Navistar, Mattel, Panasonic, Parker,LG, Whirlpool, Sara Lee, Saturn, Elcoteq LG, Rockwell andmany more. Monterrey offers more than 30 industrial parks.Compared with other markets in Mexico, industrial leaserates have only dropped to a small degree, although moreconcessions are being offered. Vacancy rates are hoveringnear 11%. Activity in the industrial market was very slowduring the first half of 2009; only five new foreign companiescommenced operations in that period. However, thereare more than 15 companies negotiating new spaces at theend of 2009 as they take advantage of landlord concessionsand recently discounted labor rates.The office market experienced slow but positive growthduring 2009 with vacancy rates ranging from 5-12% in varioussubmarkets. Although vacancy rates are slowly falling,rental rates have not begun to rise and range from$15-$25/SM. At the end of 2009 there are four projectsunder construction ranging from 20,000-70,000 SF.Retail is positive even with the global slowdown during 2009as Wal-Mart, Sams, Costco, Sears and other franchiseessearched for sites in Monterrey. The future for 2010 through2012 is bright. Home Depot and Lowes will continue toexpand their presence.Monterrey’s growth prospects are excellent. Its long industrialhistory, proximity to the US and unique technicalinfrastructure ensure that it will be one of the strongestindustrial locations in Mexico during 2010.ContactNAI Mexico+1 619 690 3029Country DataAreaGDP Growth (%)GDP 2008 (US$ B)GDP/Capita (USD)Inflation Rate (%)1,972,550-7.34%$866.34$8,040.245.43%Queretaro, with an estimated population of 1.34 million, isone of the smallest but most active and productive states forbusiness in Mexico. Located in Central Mexico in the famous“El Bajio” region, Queretaro occupies a strategic locationadjacent to nine neighboring states. Additionally, Queretarois positioned on a critical trade corridor, the NAFTA Highway(57), linking South America, Mexico and North America.The unique advantage of being located in Central Mexicoand within four hours driving distance of 70% of Mexico’spopulation makes Queretaro a major logistics hub. Morethan 45 million inhabitants live within a 135-mile radius.Queretaro hosts 19 industrial parks and zones. The automotivesector has four assembly plants, 57 Tier-one suppliers,100 Tier-two suppliers and more than 30,000 workers. TheAerospace sector is the next emerging market. At the end of2009, 2.1 million SF was under construction for GrupoSafran and Calamanda Distribution. Construction for 2010will be primarily for build-to-suits.During 2009, Queretaro promoted large capital investmentswith Bombardier, Meggitt, Metrocolor and Exco. Industriallease rates fell 10-15% in existing industrial space. Strongcompetition among developers to offer creative incentivesand flexible lease contracts ensures that 2010 will be a“tenants’ market” through 2011.Queretaro’s office sector is composed mainly of low rise,garden, office type projects. Lease rates and land values in2010 for office facilities are projected to remain stable.Retail growth was steady during 2009. Retail construction in2010 will continue with the launch of mixed use projectsand strip centers.Queretaro’s unique location on the NAFTA Highway, itsCentral Mexico proximity to distribute to major populationcenters and free trade zones, make it a destination forforeign firms to locate new projects in Mexico. The long termoutlook is extremely favorable through 2010 and beyond.UnemploymentRate (%)Interest Rate (%)6.06%4.5%UnemploymentRate (%)Interest Rate (%)6.06%4.5%Population (Millions) 107.75Population (Millions) 107.75Monterrey At A GlanceDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power CenterRegional MallsRENT/SF/YEARLow High Effective Avg. Vacancy$ 14.91 $ 19.89 $ 17.83 5.0%$ 13.66 $ 18.63 $ 16.72 7.0%$ 9.94 $ 14.91 $ 14.49 6.0%$ 18.63 $ 29.83 $ 27.87 10.0%$ 22.37 $ 26.09 $ 23.41 11.0%$ 14.91 $ 21.12 $ 16.72 12.0%$ 3.00 $ 3.96 $ 3.20 10.0%$ 4.32 $ 5.04 $ 4.35 9.0%N/A N/A N/A N/A$ 27.34 $ 45.98 $ 27.87 6.0%$ 19.88 $ 24.86 $ 21.18 12.0%N/A N/A N/A N/A$ 25.47 $ 62.45 $ 44.59 4.00%Querétaro At A GlanceDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power CenterRegional Malls(Rent/SF/YR)Low High Effective Avg. Vacancy$ 14.93 $ 20.81 $ 17.87 15.0%$ 10.40 $ 12.10 $ 11.25 20.0%$ 4.45 $ 9.48 $ 6.97 10.0%$ 17.18 $ 20.39 $ 18.78 25.0%$ 10.28 $ 16.53 $ 13.41 10.0%$ 6.66 $ 10.00 $ 8.33 20.0%$ 2.98 $ 4.10 $ 3.54 30.0%$ 3.82 $ 4.82 $ 4.32 10.0%$ 7.80 $ 12.24 $ 10.02 5.0%$ 13.32 $ 22.32 $ 17.82 N/A$ 14.76 $ 24.48 $ 19.62 N/A$ 25.68 $ 34.56 $ 30.12 N/A$ 24.12 $ 44.64 $ 34.38 N/ADEVELOPMENT LAND Low/SF High/SFOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidential$$$$$N/A4.183.721.395.5713.94$$$$$N/A18.5810.009.2946.4590.00DEVELOPMENT LAND Low/M 2 High/M 2Office in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidential$$$$N/AN/A32.0025.00100.00150.00$$$$N/AN/A48.0035.00300.00570.002010 Global Market Report ■ www.naiglobal.com 66

Reynosa, MexicoSaltillo, Coahuila, MexicoContactNAI Mexico+1 619 690 3029Country DataAreaGDP Growth (%)GDP 2008 (US$ B)GDP/Capita (USD)Inflation Rate (%)1,972,550-7.34%$866.34$8,040.245.43%Reynosa is a dynamic city on the northeast border of Mexico,nine miles south of McAllen, Texas, and located along thewell established NAFTA Highway. Its third internationalcrossing, Anzalduas Bridge, will generate even more growthin 2010 based on construction of a multi-modal servicecenter in McAllen, which will provide even lower distributioncosts.Reynosa is one of the top five maquiladora markets in Mexicowith 13 industrial parks accommodating more than 350manufacturing operations. During the global consolidationof 2008-2009, Reynosa proved to be a preferred relocationdestination for many operations, including Motorola, LGElectronics, Panasonic and Invensys.In 2009, industrial lease rates fell 20-30%. During 2010,tenants can look forward to a “tenants’ market” and willreceive additional incentives for free rent and time to retrofitspace. 2009 resulted in the same fall in demand andconsolidation of product as the rest of the Mexican industrialmarkets. Escalade and others offered facilities for lease orsale. More demand will occur in 2010 due to projectedexpansions from existing operations.Reynosa’s office market is composed of small projectshosting local service industries. Most are located near majorarteries or close to the border and industrial housing communities.No changes in lease rates are expected for 2010.Retail availability in Reynosa is limited and lease ratesremained stable during 2009. Vacancies remained low dueto strong demand from Mexican retail tenants. US retailerswill continue to evolve in Reynosa in 2010. New franchisessuch as Holiday Inn, Fiesta Inn, City Express, Best Western,Little Cesar’s, Sirloin Stockade, Chili’s, Subway, Applebee’s,Baskin Robbins, Popeye’s and 7-11 have recently openedlocations.Reynosa’s unique location on the NAFTA Highway, its borderlocation, strong industrial tradition and its ability to shipovernight to much of the US make it a desirable destinationfor foreign firms to locate new projects in Mexico. The longterm outlook is very favorable through 2010 and beyond.ContactNAI Mexico+1 619 690 3029Country DataAreaGDP Growth (%)GDP 2008 (US$ B)GDP/Capita (USD)Inflation Rate (%)11,972,550-7.34%$866.34$8,040.245.43%Saltillo, located in Northeast Mexico, is the capital city ofCoahuila. Saltillo ranks second in the country in internationalexports. It is located 180 miles south of the US border fromLaredo, Texas, and has a population of approximately700,000 inhabitants. Saltillo is recognized as a key centerfor servicing the global automotive industry.There are five main sectors that make up the Saltilloeconomy; automotive, metal-mechanic, electrical-electronic,plastic and aerospace. Corporations such as GeneralMotors, Daimler Chrysler and Freightliner support Saltillo’sautomobile industry while global suppliers such as ITT,Magna, Quimmco, Johnson Controls, and John Deere arealso located here.2009 reflected the same fall in demand and consolidationin Saltillo as the rest of the Mexican industrial markets.Recent projects include Whirlpool, Aventec, GSC and Trinity.More demand will occur in 2010 due to projected expansionsfrom existing operations. During 2009, industrial leaserates fell 10-20% for Class B and C facilities. During 2010,tenants will experience a “tenants’ market” and receiveadditional incentives for free rent and time to retrofit space.Industrial land values remained consistent during 2009 withno change expected for 2010. Two new industrial parks areunder development: Amistad Airport and Santa Monica.During 2009, there were no changes in rates or prices in theoffice sector. Saltillo only offers two high-rise buildings andsmaller two- or three-story office buildings. In the retailsector during 2009, two new shopping malls were launched:Sendero Saltillo and Liverpoll. The trend for small strip centerscontinued during 2009 with more projected for 2010.Saltillo’s unique location on the trade corridor to Texas, itsstrong industrial tradition and its ability to ship overnight tomuch of the US, make it a destination for foreign firms tolocate new projects in Mexico. The long term outlook ispositive for 2010 and beyond.UnemploymentRate (%)6.06%UnemploymentRate (%)6.06%Interest Rate (%)4.5%Interest Rate (%)4.5%Population (Millions)107.75Population (Millions) 107.75Reynosa At A GlanceDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power CenterRegional Malls(Rent/SF/YR)Low High Effective Avg. Vacancy$ 8.40 $ 18.00 $ 12.00 7.0%$ 6.00 $ 8.40 $ 8.00 1.0%$ 2.40 $ 6.00 $ 4.00 3.0%$ 8.40 $ 18.00 $ 17.50 7.0%$ 6.00 $ 8.40 $ 8.00 1.0%$ 2.40 $ 6.00 $ 4.50 3.0%$ 3.48 $ 3.96 $ 3.72 19.0%$3.96 $ 4.56 $ 4.32 13.0%N/A N/A N/A N/A$ 4.00 $ 5.50 $ 5.33 N/A$ 3.00 $ 5.00 $ 4.85 2.0%$ 3.00 $ 5.50 $ 5.33 N/A$ 4.00 $ 5.50 $ 5.33 6.0%Saltillo At A GlanceDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power CenterRegional MallsRENT/SF/YRLow High Effective Avg. Vacancy$ 11.14 $ 16.72 $ 13.37 3.0%$ 7.80 $ 10.03 $ 8.91 4.0%$ 6.68 $ 7.80 $ 6.68 3.0%$ 13.37 $ 16.72 $ 13.37 2.0%$ 7.80 $ 8.91 $ 8.91 3.0%$ 6.74 $ 7.80 $ 6.74 3.0%$ 3.60 $ 4.44 $ 3.84 6.0%$ 4.50 $ 5.04 $ 4.68 6.0%$ 5.40 $ 6.24 $ 6.00 N/A$ 10.03 $ 15.60 $ 11.14 10.0%$ 7.80 $ 10.03 $ 8.91 12.0%N/A N/A N/A N/A$ 11.14 $ 28.42 $ 15.00 11.0%DEVELOPMENT LAND Low/Acre High/AcreOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidential$ 100,000.00 $ 145,000.00$ 100,000.00 $ 130,000.00$ 75,000.00 $ 110,000.00$ 75,000.00 $ 85,000.00$ 95,000.00 $ 140,000.00$ 140,000.00 $ 200,000.00DEVELOPMENT LAND Low/SF High/SFOffice in CBDLand in Office ParksN/AN/AN/AN/ALand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidential$$$$2.781.6713.9311.14$$$$3.713.7127.8718.582010 Global Market Report ■ www.naiglobal.com 67

San Luis Potosi (SLP), MexicoTijuana, Baja California, MexicoContactNAI Mexico+1 619 690 3029Country DataAreaGDP Growth (%)GDP 2008 (US$ B)GDP/Capita (USD)Inflation Rate (%)11,972,550-7.34%$866.34$8,040.245.43%San Luis Potosi with a population of 1 million is located inCentral Mexico in the famous “El Bajio” region. San Luis Potosioccupies a strategic location adjacent to 10 neighboringstates. Additionally, SLP is positioned on a critical tradecorridor along the NAFTA Highway (57), linking South America,Mexico and North America.The San Luis Potosi market is centrally located within a fivehourdrive of 70% of Mexico’s population, making it a majorlogistics hub. San Luis Potosi now hosts Mexico’s two mostimportant inland ports and free trade zones: Borderless andInterpuerto.No new construction for speculative industrial projects wasinitiated during 2009. Construction for new projects for 2010will be for build-to-suits only. San Luis Potosi now hosts largecapital investments with General Motors. During 2009, SLPalso welcomed Becton Dickinson (medical), Cosma International(automotive), Perennials Fabrics Outdoors (textile) andAztek Technologies (steel) to the market. During 2009,industrial lease rates fell approximately 10-15% for allclasses of industrial space. Strong competition amongdevelopers to offer creative incentives and flexible leasecontracts ensures that San Luis Potosi will be a “tenants’market” through 2011.San Luis Potosi’s office sector is composed mainly of lowrise, garden, office type projects. Minor speculative officeconstruction is projected for 2010; therefore lease rates andland values for office facilities are projected to remain stable.During 2009, Soriana & MAZDA anchored the new “Lomasde Chapultepec.” Office Depot, Office Max, BANREGIO,Chili’s and Starbucks were the most active firms. Retailconstruction in 2010 will continue with the launch of threenew mixed-use developments.San Luis Potosi’s unique location on the NAFTA Highway, itsproximity in Central Mexico to distribute to major populationcenters and several free trade zones make it a destinationfor foreign firms to locate new projects in Mexico. The longtermoutlook is extremely favorable through 2010 andbeyond.ContactNAI Mexico+1 619 690 3029Country DataAreaGDP Growth (%)GDP 2008 (US$ B)GDP/Capita (USD)Inflation Rate (%)1,972,550-7.34%$866.34$8,040.245.43%Tijuana is located on the northwest tip of Mexico in the stateof Baja California. Tijuana is primarily an industrial city witha limited availability of high-end office space but boasts anemerging retail sector. Tijuana has played host to the largestconcentration of foreign manufacturing firms in Mexicofor over 40 years.At the outset of 2009, four new industrial developmentswere under construction, lease rates were at an all-timehigh and investors had flocked to the Tijuana market.However, the global economic crisis slowed investment bymanufacturers and as demand fell so did lease rates.Tijuana’s vacancy rates rose to over 10%, a numberunmatched in any year prior. As a result, lease rates fell by20-30% and developer incentives such as free rent werenoted for the first time. At the outset of 2010, the market haschanged from a landlords’ market to a tenants’ market andthis trend will continue into 2011.Early signs of expansion were noted by the end of 2009,and it is anticipated that another wave of projects will bescheduled for Tijuana throughout 2010. During 2009, Fisher& Pakel from New Zealand was the first major operator totake advantage of the profitable situation in the market bysecuring a 10-year, 200,000 SF lease.During 2009, one new retail project was completed on Blvd.2000 and one additional development is projected in the ElFlorido area for 2010. US retailers such as Auto Zone, Carl’sJr. and Wal-Mart continue to expand their business inTijuana. The Zona Rio and Agua Caliente corridors offer alimited number of Class A office projects. Only one new ClassA office project completed construction in October 2009.Tijuana’s critical mass of industrial firms, proximity to westernUS markets and 40-year history with foreign manufacturersproject a bright future for the real estate market. Although2010 is expected to be a rebound year, increased activity isprojected by the second half and anticipated through 2012and beyond.UnemploymentRate (%)6.06%UnemploymentRate (%)6.06%Interest Rate (%)4.5%Interest Rate (%)4.5%Population (Millions)107.75Population (Millions)107.75San Luis Potosi At A GlanceDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power CenterRegional MallsRENT/SF/YEARLow High Effective Average VacancyN/A N/A N/A N/A$ 4.56 $ 7.80 $ 6.20 20.0%$ 4.20 $ 4.32 $ 4.32 18.0%N/A N/A N/A N/A$ 7.44 $ 10.20 $ 8.76 5.0%$ 5.16 $ 8.76 $ 6.96 5.0%$ 3.45 $ 3.84 $ 3.54 18.0%$ 4.32 $ 5.28 $ 4.68 13.0%N/A N/A N/A N/A$ 12.84 $ 23.88 $ 18.33 10.0%$ 14.40 $ 25.80 $ 20.16 3.0%N/A N/A N/A 7.0%$ 15.72 $ 33.60 $ 24.72 5.0%Tijuana At A GlanceDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power CenterRegional MallsRENT/SF/YRLow High Effective Avg. Vacancy$ 20.00 $ 30.00 $ 25.00 40.0%$ 13.00 $ 20.00 $ 16.50 15.0%$ 8.00 $ 13.00 $ 10.00 20.0%N/A N/A N/A N/AN/A N/A N/A N/A$ 5.50 $ 11.00 $ 8.00 25.0%$ 3.00 $ 4.80 $ 3.96 33.0%$ 3.00 $ 4.80 $ 3.96 15.0%N/A N/A N/A N/AN/A N/A N/A N/A$ 12.19 $ 16.60 $ 14.39 4.0%N/A N/A N/A N/A$ 16.00 $ 50.16 $ 33.10 6.0%DEVELOPMENT LAND Low/M 2 High/M 2Office in CBDLand in Office Parks$ 300.00N/A$ 1,000.00N/ALand in Industrial Parks$ 20.00 $ 32.00Office/Industrial Land - Non-park $ 216.60 $ 658.84Retail/Commercial Land$ 315.88 $ 1,263.53Residential$ 361.01 $ 496.38DEVELOPMENT LAND Low/SF High/SFOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidential$$$$$43.00N/A60.0050.0030.0080.00$$$$$1,500.00N/A100.00130.001,500.00450.002010 Global Market Report ■ www.naiglobal.com 68

Torreon, Coahulia, MexicoCaracas, VenezuelaContactNAI Mexico (Baja)+619 690 3029Country DataAreaGDP Growth (%)GDP 2008 (US$ B)GDP/Capita (USD)Inflation Rate (%)1,972,550-7.34%$866.34$8,040.245.43%Torreon is situated in a unique region of Mexico known asLa Laguna. This region is located in north central Mexico,between the limits of Coahuila and Durango States. Thisarea called “La Laguna” has a population of approximately1.3 million people and is host to 20 of the Fortune 500companies from various sectors. This region is sustained inpart by the apparel, automotive and educational sectors.Automotive firms include John Deere, Takata, Delphi, JCI,Linar, Alcoa, Sumitomo, Cooper and Metzler. Metal fabricatorsinclude Lincoln Electric, Caterpillar and Superior Essex, whilethe major textile firms are Parras, RKI, Wrangler, Libra, andLajat Denim. The seven regional industrial parks in thearea are Amistad, Ferropuerto Laguna, Jumbo Plaza,Las Americas, Lagunero, Matamoros Industrial Park, SanPedro and Oriente Industrial Park.2009 reflected the same fall in demand and consolidationin Torreon as the rest of the Mexican industrial markets.More demand is anticipated to occur in 2010 due toprojected expansions from existing operations. During 2009,industrial lease rates fell 10-15% for Class B and C facilities.During 2010, tenants will experience a “tenants’ market”and should receive additional incentives for free rent andtime to retrofit space. Industrial land values remainedconsistent during 2009 with no change expected for 2010.No new Industrial parks are under development.During 2009, there were no changes in rates or prices in theoffice sector. Torreon offers few high-rise buildings with mostoffices in the market housed in smaller, two or three-storyprojects. In the retail sector, only five small strip centers werelaunched during 2009. This trend will continue in 2010 withonly a few additional projects expected to be delivered to themarket. SORIANA, one of the biggest supermarket retailersin Mexico, is based out of Torreon.Torreon’s unique location on the trade corridor to Texas, itsstrong industrial tradition and its ability to ship overnight tomuch of the US make it a destination for foreign firms tolocate new projects in Mexico. The Torreon market looks tobe very encouraging in 2010 and beyond.ContactNAI Ferca+58 212 286 8124Country DataAreaGDP Growth (%)GDP 2008 (US$ B)GDP/Capita (USD)Inflation Rate (%)912,050-2.0%$353.47$12,354.3029.45%Venezuela offers excellent opportunities for investment dueto extraordinary oil revenues. Although oil prices went fromUS $147 to US $78 (Oct. 20, 2009), oil revenues are still animportant commodity. The level of Venezuela cash reservesat the beginning of the economic crisis allowed that macroeconomicimbalances did not translate into a severecontraction in the market. The oil sector and oil relatedindustries are the key drivers of the Venezuela economy.The office market in Caracas, mostly dependent on foreigncompanies, has become thin. Sale and rental pricesincreased due to very low inventory, while construction ofnew projects started but only a few have entered the marketin 2009; more projects will be finished in 2010, which will notbe enough to catch up with demand for Class AAA offices.The industrial real estate market has also seen low inventorylevels in 2009 with rental and sale prices above 2008 levels.It is expected that this trend will continue in 2010 due to anincrease in oil revenue and plans from the Chavez administrationto reduce unemployment through development of themanufacturing, construction and agricultural sectors. Retailhas also seen low inventory and increased prices. Vacancyrates at Class AAA shopping centers are extremely low. Theretail sector has benefited from the government policy ofincreasing consumption of the lower income population,which increased the demand of retail outlets.Investment in real estate among transnational companieshas improved as many companies use this type of investmentto hedge their Bolívar cash balances against inflation.Due to the exchange control system in force since 2006,repatriation of dividends at an official exchange rate of US$1 = Bs. 2.15 is very difficult leaving many companies toinvest their Bolívar cash surplus in offices/warehouses.Venezuela has the biggest oil reserves in the world, acommodity that will continue to be key to the worldeconomy. Due to its foreign exchange reserves, it isestimated that Venezuela will be able to cope with anytemporary variation of oil prices.UnemploymentRate (%)6.06%UnemploymentRate (%)8.4%Interest Rate (%)4.5%Interest Rate (%)18.66%Population (Millions)107.75Population (Millions)28.611Torreon At A GlanceDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power CenterRegional MallsRENT/SF/YRLow High Effective Avg. Vacancy$ 10.25 $ 21.57 $ 16.20 10.0%$ 10.25 $ 18.84 $ 13.37 9.0%$ 5.40 $ 12.96 $ 8.64 9.0%$ 16.72 $ 22.29 $ 16.72 11.0%N/A N/A N/A N/AN/A N/A N/A N/A$ 1.60 $ 2.81 $ 1.93 8.0%$ 2.80 $ 4.00 $ 3.50 4.0%N/A N/A N/A N/A$ 5.40 $ 12.97 $ 8.63 5.0%$ 9.72 $ 16.16 $ 12.96 8.0%N/A N/A N/A N/A$ 29.28 $37.84 $ 32.44 10.0%DEVELOPMENT LAND Low/SF High/SFOffice in CBDLand in Office ParksN/AN/AN/AN/ALand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidential$$$$1.753.2016.007.00$$$$4.364.8428.0030.00San Jose At A GlanceConversion: 2.15 Bs. = 1 US$ RENT/M 2 /MO US$ RENT/SF/YRLow High Low High VacancyDOWNTOWN OFFICENew Construction (AAA)Bs. 240.00 Bs. 350.00 $ 10.37 $ 15.12 1.8%Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power CenterRegional MallsSolus Food StoresBs.Bs.Bs.Bs.Bs.Bs.163.00137.00N/AN/AN/A21.009.80N/A70.00N/AN/A55.00N/ABs.Bs.Bs.Bs.Bs.Bs.220.00190.00N/AN/AN/A44.1023.09N/A250.00N/AN/A82.00N/A$$$$$$$7.047.04N/AN/AN/A0.910.42N/A3.02N/A2.382.38N/A$$$$$$$9.519.51N/AN/AN/A1.911.00N/A10.80N/A3.543.54N/A0.6%2.3%N/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/ADEVELOPMENT LAND Low/M 2 High/M 2 Low/SF High/SFOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidentialN/A Bs. 6,000.00 N/A $ 2,790.70N/A N/A N/A N/AN/A N/A N/A N/AN/A N/A N/A N/AN/A N/A N/A N/ABs. 210.00 Bs. 2,800.00 $ 97.67 $ 1,302.332010 Global Market Report ■ www.naiglobal.com 69

United StatesSECTION CONTENTSBirmingham, ALHuntsville, ALMobile, ALPhoenix, AZJonesboro, ARLittle Rock, ARInland Empire, CALos Angeles, CAMarin County, CAMonterey County, CAOakland, CAOrange Couny, CASacramento, CASan Diego, CASan Francisco County, CASan Mateo County, CASanta Clara County, CASanta Cruz County, CASonoma County, CAVentura County, CAColorado Springs, CODenver, CODelaware & Cecil County, MarylandWashington D.C.Fort Lauderdale, FLFt. Myers, FLJacksonville, FLMartin & St. Lucie Counties, FLMiami, FLOrlando, FLPalm Beach, FLTampa Bay, FLAtlanta, GAHonolulu, HIBoise, IDSoutheast Idaho (Idaho Falls/Pocatello)Chicago, ILSpringfield, ILFort Wayne, INIndianapolis, INCedar Rapids, Iowa City, IADavenport, Bettendorf IAand Rock Island, Moline, ILDes Moines, IASioux City IAWichita, KSLexington, KYLouisville, KYBatten Rouge, LAMonroe, LANew Orleans, LAGreater Portland, MEBaltimore, MDSuburban Maryland, MDBoston, MAWestern (Greater Springfield), MADetroit, MIGrand Rapids, MILansing, MIMinneapolis/St. Pau, MNKansas City, MOSt. Louis, MOBozeman, MTMissoula, MTLincoln, NEOmaha, NELas Vegas, NVReno, NVManchester, NHPortsmouth, NHAtlantic County, NJMiddlesex/Somerset Counties, NJNorthern, NJOcean County, NJPrinceton, NJSouthern, NJAlbuquerque, NMLas Cruces, NMAlbany, NYLong Island, NYNew York, NYAsheville, NCCharlotte, NCGreensboro, NCRaleigh, NCFargo, NDAkron, OHCanton, OHCincinnati, OHCleveland, OHColumbus, OHDayton, OHOklahoma City, OKTulsa, OKPortland, ORAllentown, PABerks County, PABucks County, PAHarrisburg/York/Lebanaon, PALancaster, PAPhiladelphia, PAPittsburgh, PASchuylkill County, PAWilkes-Barre, PAColumbia, SCGreenville/Spartanburg/Anderson Counties, SCSioux Falls, SDChattanooga, TNClarksville, TNKnoxville, TNMemphis, TNNashville, TNAustin, TXBeaumont, TXCorpus Christi, TXDallas, TXHouston, TXEl Paso, TXFort Worth, TXRio Grande Valley, TXSan Antonio, TXTexarkana, TXSalt Lake City, UTWashington County, UTBurlington, VTNorthern Virginia, VASeattle/Puget Sound, WASpokane, WATri-Cities WAMadison, WIMilwaukee, WINortheastern (Fox Valley/Green Bay), WICasper, WYJackson Hole, WY

Birmingham, AlabamaHuntsville, Decatur County, AlabamaContactNAI Chase CommercialRealty, Inc.+1 888 539 1686Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage IncomeMedianHousehold Income1,105,5061,191,674569,945$65,470$48,949Birmingham is Alabama’s largest metropolitan area and oneof the largest urban regions in the South. This area has adiverse workforce of over 900,000 and a thriving economicbase, including a mixture of corporate headquarters, biotechrelatedindustries, operations centers, distribution facilitiesand automotive manufacturing and related suppliers.Most sectors of Birmingham’s commercial market showedcontinued signs of contraction in 2009 with rental ratesand occupancies declining. Negative absorption for themulti-tenant markets also continued, though there wassome absorption in freestanding industrial buildings and theservice-center sector. There has been little new productbrought to the market due to the credit freeze, although afew office developments were under construction based onprevious commitments.The Birmingham office market overall, saw a directnegative absorption of 62,897 SF during Q2 and anoccupancy rate of 91.6%, a slight decrease from 92% atthe end of Q1. The Birmingham office market continues tosee negative absorption each quarter, however the gap isnarrowing. The CBD showed positive activity in Class Aspace adding 10,000 SF to overall occupancy in Q3. Themidtown market continues to demonstrate strength with anoverall occupancy of 95%.Retail has also experienced a slide in occupancy due to theeconomy. Economic conditions have had the mosteffect on the retail sector. Retail development has alsoslowed dramatically. Homewood, Mountain Brook andVestavia maintain the highest occupancy for retail with ayear-to-date level of 91%. However, it too has experiencednegative absorption of 7,000 SF for the year.The Birmingham industrial market experienced a negativeabsorption of 126,262 SF in Q2. The overall occupancy ratewas 81.4%, a decrease from 83.2% in Q1. Despite anegative absorption of 18,906 SF for the quarter, themidtown submarket continues to demonstrate strength withthe highest occupancy rate in the market of 95.8% and anoccupancy rate of 97.1% in Class A space.ContactNAI Chase CommercialRE Services, Inc.+1 888 539 1686Metropolitan AreaEconomic Overview200Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage IncomeMedianHousehold Income402,764441,760193,101$64,222$55,903The Huntsville/Madison County commercial real estate marketcontinues to remain stable throughout the first threequarters of 2009. Although the local economy remains inrecession, the jobs Huntsville will gain from Base Realignmentand Closure (BRAC) consolidation will lift the city outof the nationwide recession before the rest of the country.The Huntsville/Madison County community once again ledAlabama in both population growth and the new andexpanding job markets.The Huntsville/Decatur office market has remained stable in2009. Absorption of office space has slowed, but continueddefense spending has allowed several companies to buildnew buildings in 2009. The office market should remainstable with slower growth for the next two years sustainedby the planned growth due the BRAC realignment. Rentalrates in the office market have remained consistent at$17.75-$25/SF for Class A space and $13 -$17/SFfor Class B. New construction completed in 2009 has keptvacancy rates higher at an 11% average. Office vacancyrates should begin to decrease by year’s end. Much of thevacant space should be absorbed by the end of 2010.Overall, the 2010 forecast for office remains stable.Huntsville’s industrial market is currently seeing vacancy inexcess of 9%. The market is reacting by providing additionalconcessions and reduced rent, but vacancy is expected toinch higher during the first half of 2010.The retail market has experienced anemic performance dueto the economic downturn. More vacancies are increasing inbig block space and niche shopping centers. The Huntsvilleretail market ended 2008 with a 12% vacancy rate. Vacancyrates have continued to rise in 2009. Construction startscame to a near halt during 2009. To combat low absorptionand the decline in retail activity, landlords have begunlowering rental rates and offering more concessions.Huntsville remains the shining star of the state of Alabamawith national recognition and rankings. The Huntsville/MadisonCounty community has received unprecedented rankingsand recognition for job growth, technology and quality of life.In 2009, it received its most lofty ranking yet when it wasnamed by Kiplinger as the number one city in the US.Total PopulationMedian Age37.95Total PopulationMedian Age38Birmingham At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIAL$$$$$N/A17.5013.0023.0018.0013.50$$$$$1N/A23.5017.5028.0023.008.00N/A$ 21.07$1 6.48$ 27.00$ 21.26$ 15.75N/A9.1%13.0%N/A8.0%12.5%Bulk WarehouseManufacturingHigh Tech/R&DRETAIL$$$2.802.009.00$4.54$4.00$12.00$$$3.583.209.2519.0%16.0%12.0%DowntownNeighborhood Service CentersCommunity Power CenterRegional Malls$$$$9.008.009.0018.00$$$$15.0019.0017.0035.00$ 13.79$ 11.50$ 11.00$1 9.009.3%12.0%12.0%13.0%DEVELOPMENT LAND Low/Acre High/AcreOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidential$$$$305,000.00195,000.00$50,000.0040,000.00320,000.00N/A$$$$$850,000.00310,000.00125,000.00240,000.00850,000.00N/AHuntsville, Decatur County At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power CenterRegional Malls$$$$$$$$$$$N/A18.0014.0019.0018.0013.002.003.008.00N/A8.008.0020.00$$$$$$$$$$$N/A25.0017.0025.0022.0017.003.505.0010.00N/A18.0010.0060.00$$$$$$$$$N/A20.0015.00N/AN/A15.003.003.759.25N/A15.007.0030.00N/A8.0%12.0%25.0%4.0%12.0%9.0%15.0%12.0%N/A8.0%10.0%8.0%DEVELOPMENT LAND Low HighOffice in CBD (per buildable SF)Land in Office Parks (per acre)Land in Industrial Parks (per acre)Office/Industrial Land - Non-park (per acre)Retail/Commercial Land (per acre)Residential (per acre)$ 40,000.00 $ 75,000.00$ 50,000.00 $ 120,000.00$ 25,000.00 $ 50,000.00$ 50,000.00 $ 150,000.00$ 225,000.00 $ 750,000.00$ 15,000.00 $ 125,000.002010 Global Market Report ■ www.naiglobal.com 71

Mobile, AlabamaPhoenix, ArizonaContactNAI Heggeman RealtyCompany, Inc+1 251 479 8606Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage IncomeMedianHousehold Income401,171393,638199,986$48,705$43,051While somewhat resistant to the recessionary pressuresin 2008, the Mobile area definitely experienced a majorslowdown in 2009. Despite the current downward economictrends in the area, Mobile is noted as a leader for shipbuilding,aerospace and medical research within the state ofAlabama. Mobile remains a global player with its deepwaterport currently ranked in the top 10 with regard to bulk andcontainer handling.The office sector shows a slight decrease in absorption from2008, with very little Class A space available. Rentsremained stable with an overall 10% vacancy. Class B spaceis experiencing a 20% vacancy with ample sublease opportunities.There is no new construction at the present time.The industrial market has realized a substantial increasein vacancy during 2009. Vacancy levels are approachingapproximately 25%. Mobile is fortunate to have the nearlycompleted Thyssen-Krupp Steel Mill in its northern sectorscheduled to open in mid 2010 with a capital investmentof roughly $4.5 billion. Mobile Container Terminal locatedon the deepwater port, continues to expand despitethe economic climate. General cargo and bulk activityremain below average at the port due to the trends in theglobal market.The retail sector continues to soften and is very reflective ofthe trend nationwide. There is virtually no new constructionunder way in either Mobile or Baldwin County. Retail rentsare flat with many national tenants renegotiating earlyrenewals at lower rates. The lending environment continuesto challenge developers for permanent financing to closedeals. Virtually no “big box” projects are under way at thepresent time. Surprisingly, the multifamily market inMobile/Baldwin remains steady with approximately 3,000units under construction. The multifamily market is one ofthe few real estate products that remain favorable in thecapital markets with permanent financing available.Overall expectations for 2010 remain unclear. In the eventthat Northrop Grumman/Airbus is awarded a major contractto manufacture aircraft for the US Air Force in Mobile, everysector of the market would feel a direct surge in activity withmajor growth returning.ContactNAI Horizon+1 602 955 4000Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage IncomeMedianHousehold Income4,456,8845,149,0331,852,413$71,428$58,328The Phoenix commercial real estate market is experiencingits most difficult challenges since the early 1990s.Impacted by the continuing increase in unemployment, thedemand for space has been stymied by uncertainty andcorporate contraction. After ranking second in populationgrowth in the US for 25 years, Arizona has fallen to 49thand is experiencing negative job growth due to the loss ofthousands of construction related jobs.The office vacancy rate is at 25% overall. Due to theoverbuilding of new office space that is delivered but not yetoccupied, vacancy of office space in the downtown andsome suburban submarkets has reached a staggering 60%vacancy rate. Asking rates are just over $26/SF for Class Aoffice space. Effective rates on completed new leases are at$23/SF. The market is experiencing negative net absorptionthat will be compounded with the delivery of over 2 millionSF currently under construction.Industrial vacancy stands at nearly 17% with negative netabsorption of just over 6 million SF in 2009. Achieved rentalrates have declined 15-18% year over year. With the deliveryof another 2.2 million SF over the next three quarters,vacancy will undoubtedly increase and rental rates willcontinue to erode.Retail landlords have been the most aggressive with rentalrates and concessions for both new and existing tenants. Inspite of those efforts, overall vacancy has risen from 10.3%at the beginning of 2009 to the current level of 11%. Newconstruction has exacerbated the problem with 2.8 millionSF added to the base over the past four quarters. Another1 million SF is currently under construction and due to bedelivered over the next three quarters. As the economy continuesto struggle and new product is completed and delivered,vacancy rates can be expected to climb another 3-5%.Today’s market offers opportunities with upside potentialfor tenants and investors. More opportunities are expectedas foreclosure looms for properties not measuring up to theirpurchase pro formas. Prosperity will return to the Phoenixmarket once positive growth is realized through increasedconsumer confidence, job growth and access to creditmarkets.Total PopulationMedian Age36Total PopulationMedian Age34Mobile At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power CenterRegional Malls$$$$$$$$$$$$$20.0017.0010.0020.0015.009.003.002.7515.008.0010.0016.0018.00$$$$$$$$$$$$$25.0020.0015.0022.0018.0013.004.254.0020.0010.0027.5020.0025.00$$$$$$$$$$$$$22.1518.5012.5021.0016.5011.003.653.3717.509.0018.7518.0021.50N/A10.0%20.0%N/A10.0%20.0%25.0%15.0%10.0%10.0%10.0%10.0%10.0%DEVELOPMENT LAND Low/Acre High/AcreOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidential$$$$$$200,000.00120,000.0035,000.0040,000.00261,360.0020,000.00$$$$$$1,200,000.00217,800.0087,120.00261,360.00871,200.0050,000.00Phoenix At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power CenterRegional Malls$$$$$$$$$$$$$28.0020.0014.0020.0018.0015.002.503.004.5010.0011.0016.0025.00$$$$$$$$$$$$$37.0032.0028.0037.0036.0034.0015.0016.0017.0032.0028.0038.0080.00$$$$$$$$$$$$$34.0026.0021.0028.0026.0022.006.007.008.5019.0017.0022.0050.0060.0%16.0%17.0%60.0%28.0%23.0%18.0%13.0%19.0%15.0%13.0%12.0%10.0%DEVELOPMENT LAND Low/Acre High/AcreOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidential$$$$$$800,000.00108,000.00100,000.0015,000.0010,000.002,000.00$$$$$$7,500,000.00500,000.00450,000.002,000,000.008,000,000.001,500,000.002010 Global Market Report ■ www.naiglobal.com 72

Jonesboro, ArkansasLittle Rock, ArkansasContactNAI Halsey+1 870 972 9191Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage IncomeMedianHousehold Income121,875135,08253,430$52,949$39,936Jonesboro experienced growth in many sectors during2009, including education, medical and industrial. ArkansasState University enjoyed record enrollment for the secondyear in a row. Key industries in Jonesboro continue to beretail, industrial, office and education.The industrial sector boomed in 2009 between theannouncement of Nordex USA’s plan to construct a $100million wind-energy plant in the Jonesboro Industrial Parkand Alberto Culver, also located in the Jonesboro IndustrialPark, expanding to allow for even more jobs and productionoutside of Jonesboro. Startek, an in-bound call centerthat fields calls for AT&T customers, had a huge hiringupswing at the beginning of 2009, expanding to well over600 employees.The retail sector contracted in 2009 as shown by the closureof Steinmart, Steve & Barry’s and Circuit City, but madeprogress to regain ground with the arrivals of Olive Garden,Murphy Oil Convenience Store, Sport Clips for Men, OfficeDepot, a third Burger King location, and a Best Buy. Themultifamily market showed a slight upturn with theconstruction of The Grove student housing, fully furnishedapartments located just off campus from Arkansas StateUniversity. The largest announcement of 2009 was that NEABaptist Memorial Hospital was approved for construction ofa $200 million, 250 bed hospital on the Northeastern sideof Jonesboro. This has called for area growth and manyresidential zones being quickly re-zoned to commercial,which is expected to continue well into 2010.Jonesboro saw several significant transactions in 2009including the sale of a new office building valued at$1.5 million to Merrill Lynch, the new location of E.C.Barton's Surplus Warehouse and the purchase of propertyfor Ritter's corporate campus, an internet, TV, and phoneprovider headquartered here.ContactNAI Dan Robinson& Associates+1 501 224 7500Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage IncomeMedianHousehold Income690,000746,933423,829$60,500$49,636Little Rock's growth sectors are medical, government andinstitutional. Suburban Little Rock is experiencing amuch slower absorption in retail growth and multifamilydevelopment. The SMA has been positively impacted withnatural gas exploration (Fayetteville Shale) and wind energyrelated manufacturing. The bedroom communities are alsodeveloping their identities as potential corporate officelocations.Office market activity is occurring in the bedroomcommunities of Benton, Maumelle and particularly Conway.Internal growth is absorbing the second generation officespace in the CBD and West Little Rock. With Verizon'spurchase of Alltel's corporate campus (Midtown) the anticipationis this campus will become available. Productionfacilities for natural gas and wind energy are beingcompleted. Food grade production facilities are alsocoming online.There is an abundance of first generation retail space inplace or approved in high income areas or along hightraffic corridors. City-wide limited infill activity will continue.The most prominent infill location is just north of I-630 onUniversity Ave.The Little Rock investment market is primarily an owner/usermarket. Fast food facilities tend to be the segment mostprone to investment activity. However, this activity is movinginto the bedroom communities. Multifamily activity hasslowed. Projects are on the drawing board seeking sourcesof funding.Time, distance and available infrastructure in close proximityto major employment centers have caused developers toredirect their site searchs along the I-430 corridor.Arkansas's favorable tourism industry entices the entrepreneurialspirit and restaurants and hotel facilities continue toemerge but at a slower pace in the CBD and suburbanmarkets. There is serious competition for market share.The community of Conway recently announced that it willhouse corporate offices for two major companies, HewlettPackard and Southwestern Energy Company. Searcyannounced the facility expansion of Schulze & Burch BiscuitCo., a specialty baking company out of Chicago, IL.Total PopulationMedian Age35Total PopulationMedian Age37Jonesboro At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power CenterRegional Malls$$$$$$$$N/A14.0010.0018.0014.008.003.00N/AN/AN/A10.00N/A18.00$$$$$$$$N/A22.0016.0022.0020.0015.006.00N/AN/AN/A20.00N/A32.00$$$$$$$$N/A12.0015.0018.0018.0012.003.50N/AN/AN/A14.00N/A25.00N/AN/AN/A10.0%10.0%10.0%10.0%N/AN/AN/AN/AN/A10.0%DEVELOPMENT LAND Low/Acre High/AcreOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidential$$$$N/A120,000.005,000.005,000.00N/A8,000.00$$$$N/A330,000.0020,000.0015,000.00N/A20,000.00Little Rock At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power CenterRegional Malls$$$$$$$$$$$$20.0017.0010.0022.0016.0014.002.501.506.00N/A20.0014.0025.00$$$$$$$$$$$$24.0019.5014.0024.0020.0016.505.006.909.50N/A35.0030.0040.00N/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/A10.0%13.0%5.0%12.0%7.0%5.0%8.0%5.0%N/A40.0%60.0%N/ADEVELOPMENT LAND Low/Acre High/AcreOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidential$$$$$435,600.00174,240.0032,670.001.50108,900.00N/A$$$$$1,306,800.00522,760.00108,900.00261,360.001,306,800.00N/A2010 Global Market Report ■ www.naiglobal.com 73

Inland Empire (Riverside/ San Bernardino), CaliforniaLos Angeles, CaliforniaContactNAI Capital(Riverside)+1 951 346 0800NAI Capital(Ontario/San Bernardino)+1 909 945 2339NAI Capital(Temecula Valley)+1 951 491 7590Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage IncomeMedianHousehold IncomeTotal PopulationMedian Age4,189,7814,458,8271,321,430$74,095$55,13132The Inland Empire has suffered during the recession mainlydue to a strong development surge over the last 10 years.Residential foreclosures have subsided as median homeprices fell. Lease rates for all types of commercial propertydeclined, which increased absorption in a double-digitvacancy factor environment throughout the commercialspectrum.The good news is that the Inland Empire has returned to itshistorical position as the lower cost alternative to the LosAngeles basin. Affordable housing, low cost commercialspace, and a strong employee base are likely to encourageeconomic growth in the Inland Empire.The office market experienced a significant contractionduring the recession. Vacancy rates rose to unprecedentedlevels over the last two years causing highly aggressive baserental rates and concession packages to attract the InlandEmpire office user. With the exception of malls, retailvacancy rates in the Inland Empire exceed 10%. Althoughhigh, these rates are likely to remain constant or decreaseslightly over the next 12 months. Enticed by low lease rates,discount retailers, who have experienced an increase in salesduring the recession, are inquiring about additional space.The industrial market remains weak due to negativeabsorption and approximately three years of availableinventory proliferating throughout the Inland market inall size spectrums. The optimistic aspect is that thegap between buyers and sellers and landlords and tenantshas finally narrowed, which is stimulating transactions.Distressed property owners are moving product lateralwith the late 1980s market. With prices at a 15-year low,opportunity has been created for the investor looking topurchase at or below replacement cost.Private Equity Funds are taking to this market due to thetremendous upside potential of where they can buy now asopposed to where the product topped out during the heightof the market.ContactNAI Capital (Encino)+1 818 905 2400NAI Capital (West Los Angeles)+1 310 440 8500NAI Capital (South Bay)+1 310 532 9080NAI Capital (Commerce)+1 323 201 3600NAI Capital (Pasadena)+1 626 564 4800NAI Capital (Santa Clarita)+1 661 705 3550Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage IncomeMedianHousehold IncomeTotal PopulationMedian Age12,721,59212,341,9265,950,383$82,944$57,88735The entertainment industry, a primary component of themarket in Los Angeles, has weathered the current crisisquite well. The October 25th year-to-date box office receiptsincreased 7.3% from 2008. Offsetting the gains in entertainmentare losses in international trade. Total shipmentsthrough September at the Port of Long Beach decreased24.6 % from the previous year. In general, economicconditions in Los Angeles County remain weak. However,there is a bright spot as discount retailers, such as Big Lots,Dollar Tree, 99 Cents Only, and Wal-Mart, continue to expand.Concerns regarding future economic growth have keptdemand for commercial real estate in Los Angeles Countysubdued. Companies throughout Los Angeles are lookingfor ways to reduce lease expenses. For some, this meansvacating their existing space. This has led to higher vacancyrates for office, retail, and industrial space. Other companiesare asking for rent reductions. This, combined with highervacancy rates, led to lower lease rates in all three markets.Tight credit markets and an unwillingness to lend havenegatively impacted the number of sales transactions. Thenumber and dollar value of sales transactions declinedsignificantly compared with 2008 figures. The velocity ofsales transactions is expected to increase as owners shift toSBA financing.Higher vacancy rates, lower lease rates and tight credit havealmost eliminated new construction. Very little constructiontook place in Los Angeles County during 2009 and is notlikely to pick up in the near future. However, several newconstruction sites are slated for 2011.We have experienced a significant decline in lease rates andsales prices with some categories at lower levels than wehave seen for almost 10 years. However, with the currentincrease in activity, some improvement in credit lending andthe existing low prices in the market, we expect to see asignificant increase in lease and sale transactions in the next12 months.Inland Empire (Riverside/ San Bernardino) At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersSub Regional CentersRegional Malls$$$$$$$$$N/AN/AN/A29.4013.975.642.041.804.20N/A3.484.8015.00$$$$$$$$$N/AN/AN/A41.4049.7639.5115.4725.8013.44N/A45.0047.2442.00$$$$$$$$$N/AN/AN/A37.4126.8020.504.574.026.86N/A19.6026.2530.77N/AN/AN/A80.2%32.8%19.5%15.0%16.7%7.4%N/A10.5%11.4%2.8%DEVELOPMENT LAND Low HighOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidential (per acre)$$$N/A881,928.00153,932.00N/A403,846.00N/A$$$N/A1,033,057.00653,400.00N/A1,520,270.00N/ALos Angeles At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)DOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power CenterRegional Malls$$$$$$$$$$$$N/A18.009.8124.7514.716.000.592.404.687.0810.803.2418.00$$$$$$$$$$$$N/A52.5444.3564.3777.4054.3229.8817.3612.6045.2441.6837.0025.00$$$$$$$$$$$$N/A34.1921.7441.0132.6725.206.726.817.0032.6125.3123.8524.46N/A13.7%12.2%69.8%14.80%12.7%9.2%6.8%11.6%4.6%6.8%7.6%3.3%DEVELOPMENT LAND Low/Acre High/AcreOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidential$$$$4,375,000.001,066,666.001,034,031.00N/A1,306,801.00N/A$$$$10,937,500.003,849,206.003,120,000.00N/A3,975,000.00N/A2010 Global Market Report ■ www.naiglobal.com74

Marin County, CaliforniaMonterey, CaliforniaContactNAI Global+1 609 945 4000Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage Income246,713243,128132,909$121,815Marin County, bordered by the San Francisco Bay, the PacificOcean and the vineyards of Sonoma Valley, is consideredone of the most affluent counties in the nation. Located justnorth of San Francisco’s Golden Gate Bridge, Marin, hometo Mt. Tamalpais, has an excellent climate, lavish open spaceand spectacular views.Marin County office vacancy peaked above 16.8% in 2003,but has since increased to 21.1% by Q3 2009. Vacancyincreased 570 basis points since Q3 2008. The averageasking rate decreased a substantial $2.52/SF in the pastyear to $30.72/SF full service per year. Since 2004, nearly5 million SF of available office space has been absorbedfrom the county’s marketplace.A rare occurrence, the City of San Rafael vacancy, at 27.3%in Q3 2009 compared to 17.7% a year ago, is highercompared to its northern counterpart, Novato. This vacancyincrease is due to the completion of the second phase ofthe San Rafael Corporate Center bringing 160,000 SF ofnew construction to the market.In Southern Marin, the overall average asking rate in Q32009 decreased $0.52/SF to $3.19/SF full servicecompared to a year ago. This part of the county holds thehighest average asking rates that shelters many of thecounty’s successful financial firms.Commercial sale activity experienced a stalemate during2009. The largest transaction in the county closed at thebeginning of the year as Inland Western Larkspur LLC soldits 172,443 SF shopping center to JS Rosenfield & Co.Other sale activity includes MEPT, a pension fund selling 55,75 & 88 Rowland Way in Novato, totaling 168,072 SF, toBarker Pacific Group and Rockwood Capital.Investment activity remained quiet for 2009. We anticipatecontinued softening in values as capitalization rates rise toaccommodate perceived risks. The Marin market is relativelystable due to the high barriers of entry for new development,the active small tenant population and relatively lower useof debt.ContactNAI Global+1 609 945 4000Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage Income402,3984389,312184,867$76,236Monterey County’s major economic generators are agricultureand tourism. The Monterey Peninsula, home to PebbleBeach, Cannery Row and the Monterey Bay Aquarium, isheavily dependent on tourism. The Salinas Valley is one ofthe state’s most significant agricultural regions producing avariety of lettuces, strawberries, grapes and other products.Vacancy numbers rose across the board from Q3 2008 toQ3 2009; Class A office vacancy countywide increased from9.3% in Q3 2008 to approximately 13.1% in Q3 2009,while Class B office vacancy rose from 5.1% to 7.8% duringthe same period. Average rents for Class A office remainedsteady, rising from $27.96/SF to $28.20/SF while Class Boffice saw a decrease from $23.40/SF to $22.80/SF.Industrial vacancy rose from 4.4% in Q3 2008 to 8.2% inQ3 2009 and posted an average rent of $5.64/SF.Water use remains a driving force behind the current stateof future growth as the Monterey Peninsula looks for an alternativewater source other than the Carmel River. Currentlythe PUC is considering three solutions for a desalinationplant in the area: the proposed Cal-Am desalinization plantin Moss Landing, another proposed Cal-Am desalinizationplant in Marina, and the Regional Water Project, also locatedin Marina. In the Salinas Valley, efforts to combat saltwaterintrusion have proceeded well. The Monterey County WaterResources Agency is in the process of completing a projectthat includes modifications to the Nacimiento Dam spillwayand the installation of a rubber dam and diversion facility onthe Salinas River near Marina.Most new development will continue to be focused on theformer Fort Ord and Salinas Valley. Additional developmenton the Monterey Peninsula will be limited by water availabilityand local politics.MedianHousehold Income$90,312MedianHousehold Income$60,077Total PopulationMedian Age45Total PopulationMedian Age32.9Marin County At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power CenterRegional Malls$$$$$$$$N/AN/AN/A42.0023.4023.4012.0012.0015.00N/A15.0036.00N/A$$$$$$$$N/AN/AN/A42.0060.0042.0015.6015.6020.10N/A45.0045.00N/AN/AN/AN/A$ 42.00$ 30.96$ 30.24$ 13.80$ 13.80$ 20.10N/A$ 21.29$ 39.09N/AN/AN/AN/A100.0%27.9%16.6%N/AN/AN/AN/A8.1%2.7%N/ADEVELOPMENT LAND Low HighOffice in CBD (per buildable acre)Land in Office Parks (per acre)N/A$ 1,306,800.00N/A$ 1,742,400.00Land in Industrial Parks (per acre)Office/Industrial Land - Non-park (per acre)$$871,200.00871,200.00$ 1,306,800.00$ 1,306,800.00Retail/Commercial Land (per acre)Residential (per acre)$ 1,524,600.00$ 2,395,800.00$ 1,960,200.00$ 2,831,400.00Monterey At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power CenterRegional Malls$$$N/AN/AN/AN/A12.006.72N/A3.00N/AN/AN/AN/AN/A$$$N/AN/AN/AN/A46.3227.00N/A17.76N/AN/AN/AN/AN/A$$$N/AN/AN/AN/A28.2022.80N/A5.64N/AN/AN/AN/AN/AN/AN/AN/AN/A13.1%7.8%N/A8.2%N/AN/AN/AN/AN/ADEVELOPMENT LAND Low HighOffice in CBD (per buildable acre)Land in Office Parks (per acre)Land in Industrial Parks (per acre)Office/Industrial Land - Non-park (per acre)Retail/Commercial Land (per acre)Residential (per acre)$ 15.00 $ 40.00$ 261,360.00 $ 609,840.00$ 174,240.00 $ 609,840.00$ 261,360.00 $ 1,524,600.00$ 435,600.00 $ 1,742,400.00N/AN/A2010 Global Market Report ■ www.naiglobal.com 75

Oakland, CaliforniaOrange County, CaliforniaContactNAI Global+1 609 945 4000Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage IncomeMedianHousehold IncomeTotal PopulationMedian Age4,249,6444,362,6442,274,988$100,489$77,44040The East Bay office market has risen to a 17.7% vacancy,a 3.2% increase since Q3 2008. Vacancy had steadilyremained around 14% since Q3 2005 until this year whenvacancy climbed each successive quarter to its current level.The average asking rate decreased $2.28 in the past yearto $25.92/SF per year for full-service properties.The “core” East Bay office market accounts for a total buildingbase of 21 million SF. Vacancy is at 14.3% and the averageasking rate is $27.12/SF per year for full-service properties.R&D vacancy continues to hover above 20%, climbing from20.6% in Q3 2008 to 23.1% in Q3 2009. The averageasking rate has dropped from $13.28/SF in Q3 2008 to$11.22/SF NNN. Year-to-date 2009, the R&D market hasrecorded over 3 million SF of gross absorption, an improvementover 2008, which totaled less than 3.5 million SF.Manufacturing vacancy closed Q3 2009 at 7.6%, up from5.2% in Q3 2008. The average asking rate fell from $6.83to $6.00/SF per year NNN during the same time span.Year-to-date 2009, the manufacturing market has amassedover 4.7 million SF in gross absorption, which is alreadygreater than 2008’s total gross absorption of 4.6 million SF.The retail shopping centers market ended mid-year 2009with vacancy climbing and asking rates steadily dropping.Vacancy was 7.2% on gross leasable area of 25 million SFwith the average asking rate $24.83/SF NNN.Investment activity has been steady through Q3 2009.HRPT properties secured the largest sale of 2009 with thepurchase of TMG/JER’s Bayside Business Park in Fremontwith the four-building portfolio measuring 392,488 SF ofR&D space.Many large construction projects have been put on holddue to the poor economic forecast. Earlier this year, EllisPartners completed their 110,000 SF office/retail buildingin Jack London Square; however, the building is currently100% vacant.ContactNAI Capital+1 949 854 6600Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage IncomeMedianHousehold IncomeTotal PopulationMedian Age2,985,4982,956,0481,413,475$98,346$75,63836.5The Orange County office, retail and industrial markets havebegun to recover from the last two years of economic slowdown. The Orange County market was particularly hardhit during the recession due to the downfall of the nationalsub-prime lenders headquartered in Orange County, theconstruction of 4 million SF of Class A office projects andunemployment rising from 3.5% to 9.5%.The good news is that the worst is likely over in OrangeCounty. Many existing companies are beginning to lockin long term leases at rates that are the lowest in 10 years.Conditions may deteriorate further but not to the extentwitnessed over the last 24 months. Although leasing activityhas been driven primarily by existing companies renewingtheir leases early, the Orange County market has beenone of the most active in the US, according to real estateinformation provided by CoStar. We are beginning to see amigration from low rise to Class A high rise space as tenantstake advantage of lower lease rates.Orange County retail markets have fared well. Vacancy rateshave crept above 5% while lease rates declined only 1%from last year. These trends may continue as consumerscontinue to cut spending in favor of savings. However, aweak dollar combined with economic growth in Asia, is likelyto boost tourism in Orange County. Increased tourism willhelp to offset weak domestic retail spending.The Orange County industrial market experienced a contractionduring the recession. Vacancy rates rose above 10% in two ofthe markets tracked. On average, lease rates declined 4.1%from Q3 2008 levels. Due to these conditions, constructionactivity came to a halt. While this is certainly a negative, it isthe first step for recovery in the market. At the moment, overallcapacity is capped at current levels.As economic conditions improve, low lease rates are likelyto entice new entrants into the market. With capacitycapped, vacancy rates will decline. Lease rates will increaseas the market eventually tightens.Oakland At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIAL$$$$N/A12.0010.08N/A13.209.00$$$$N/A37.2034.32N/A30.0031.20N/A$ 29.90$ 25.01N/A$ 28.76$ 19.37N/A14.9%22.1%N/A14.1%24.4%Bulk WarehouseManufacturing$$1.802.40$$7.2012.00$$3.884.506.1%6.1%High Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power CenterRegional Malls$$$3.60N/A6.006.00N/A$$$42.00N/A48.0048.00N/A$ 11.42N/A$ 24.83$ 24.83N/A23.1%N/A4.4%4.4%N/ADEVELOPMENT LAND Low/Acre High/AcreOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidentialN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AOrange County At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power CenterRegional Malls$$$$$$$$$N/AN/AN/A23.159.008.523.002.403.00N/A10.2012.0018.61$$$$$$$$$N/AN/AN/A45.4060.0048.4022.8021.0022.80N/A60.0072.0051.00$$$$$$$$$N/AN/AN/A37.4828.9424.397.927.337.63N/A24.9325.1526.11N/AN/AN/A11.7%21.2%17.5%8.6%11.0%10.1%N/A6.0%5.0%3.6%DEVELOPMENT LAND Low/Acre High/AcreOffice in CBDLand in Office Parks)Land in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidential$$$N/A1,392,857.001,286,434.00N/A1,200,000.00N/A$$$N/A2,333,333.002,000,000.00N/A3,076,923.00N/A2010 Global Market Report ■ www.naiglobal.com 76

Sacramento, CaliforniaSan Diego, CaliforniaContactNAI Global+1 609 945 4000Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage IncomeMedianHousehold Income2,138,1822,255,358944,031$75,478$61,395Located in the north-central region of California, the SacramentoValley has benefited from the migration of Bay Area companiesseeking high quality facilities, affordable rental rates andlower employment costs. Additionally, the Sacramento Valleymarket is accessible to major thoroughfares (I-80, US-50, I-5 and Highway 99). The Port of Sacramento is an inland portthat handles mainly agricultural commodities.Sacramento Valley office vacancy closed Q3 2009 at 17.2%,more than a 300 basis point increase from a year ago. Totalavailability grew 2.8 million SF during this time to 13.7million SF. A substantial amount of new construction hasplayed a key role in the vacancy/availability increase. Theaverage asking rate was $23.76/SF full service, a sizabledecrease of $3.36/SF, or 12%, from a year ago. The marketcontinues to remain favorable for tenants as landlords offerrental rate discounts plus other concessions such as freerent and higher TI allowance dollars. Lease terms alsoremain shorter, typically ranging between one and two years.The R&D/manufacturing/warehouse market ended Q3 2009with a vacancy of 10.4%. Total availability in the industrialmarket was 14.5 million SF, composed predominantly ofdirect space accounting for 92% of the total. Subleasespace increased nearly 700,000 SF in Q3 2009 alone, tomore than 1.15 million SF. This surge was mainly attributedto Optisolar’s massive industrial facility hitting the market.The average industrial asking rate was $4.56/SF NNN, down$0.84, or 15% from a year ago.Office construction continued to trickle on to the market duringQ3 as projects that were funded over a year or two ago arejust now being completed. The development pipeline, however,is quickly tightening as today’s developers wait on thesidelines until market conditions become favorable again.ContactNAI San Diego+1 619 497 2255Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage IncomeMedianHousehold Income3,040,3883,202,1431,460,337$81,825$60,331The San Diego County commercial real estate market hassoftened significantly during the past year, but with a glimmerof positive indications towards Q4 2010. Overall, rentalrates, occupancy rates and new construction have trendeddownward, as has net absorption in retail and industrialproperties. But positive net absorption of almost 300,000SF of office space in Q3 provided some welcome positivenews in an otherwise very difficult year.At the end of Q3 2009, office vacancy rates were 15.3%,retail vacancy rates 5.1% and industrial vacancy was 10.9%.Both retail and industrial properties experienced substantialnet negative absorption, approximately 1.5 million SF and3.75 million SF, respectively, resulting in reduced asking rentalrates across all product types.Investment sales and owner user sales have continued to beslow compared with sales from two to four years ago, asthe credit environment has remained challenging. Loan tovalue ratios have decreased to 50-60% of appraised values,increasing equity requirements substantially, with theexception of SBA financing. Owner users are waiting on thesidelines for prices to drop further, leading to fewer SBAfinanced transactions.Among the largest office lease signings this year is the lawfirm Procopio, Cory, Hargreaves & Savitch downtown for102,000 SF, eBioscience for 49,000 SF in North City and theDepartment of Homeland Security for 45,000 SF. Industrialleases include 200,000 SF by MOR Furniture and 129,000SF by FedEx Ground, both in Otay Mesa near the MexicoBorder. The largest sale was the 175,000 SF office buildingpurchased by Kaiser Permanente for approximately $52million, just under $300/SF. Excluding small buildings (under15,000 SF), six office buildings totaling $61 million sold inthe first half of 2009 for an average of $140/SF, down froman average price of $230/SF in 2008.Sales activity for 2009 has been especially slow due to thecombined forces of the aforementioned credit tightening andbuyer reluctance. Continued downward pressure from pricesis forecast for 2010 as concessions and capitalization ratesrise, rents decline, CMBS loans mature and refinancingbecomes problematic.Total PopulationMedian Age35Total PopulationMedian Age35Sacramento At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALIndustrial & WarehouseRETAILDowntownNeighborhood Service CentersCommunity Power CenterRegional Malls$$$$$$$$$$33.0028.2015.0023.4016.689.60N/A7.206.6015.4821.00$$$$$$$$$$37.8039.6042.3632.4037.8036.72N/A34.2037.4437.5636.00$$$$$$$$$$$37.5634.0824.7227.3625.2022.204.5620.4018.3624.4827.0061.4%9.6%10.7%49.1%25.3%19.0%10.4%2.8%12.9%7.1%26.8%DEVELOPMENT LAND Low HighOffice in CBD (per buildable acre)Land in Office Parks (per acre)Land in Industrial Parks (per acre)Office/Industrial Land - Non-park (per acre)Retail/Commercial Land (per acre)Residential (per acre)$$$$N/A217,800.00130,680.0087,120.00174,240.00N/A$$$$N/A435,600.00348,480.00217,800.00522,720.00N/ASan Diego At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power CenterRegional Malls$$$$$$$$$$$$N/A27.0021.0030.0024.0018.004.684.809.0021.1812.0020.0030.00$$$$$$$$$$$$N/A36.0030.0033.0030.0030.0012.0018.0014.4060.0036.0028.0044.47$$$$$$$$$$$$N/A31.5025.5031.5027.0024.008.349.249.0033.3323.0028.0738.50N/A18.00%13.20%N/A21.00%11.00%9.40%10.90%16.20%6.60%7.10%5.80%1.80%DEVELOPMENT LAND Low/Acre High/AcreOffice in CBDLand in Office Parks$ 4,356,000.00N/A$13,000,000.00N/ALand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidential$$$$436,500.00436,500.00871,200.00100,000.00$ 1,000,000.00$ 1,300,000.00$ 2,000,000.00$ 4,000,000.002010 Global Market Report ■ www.naiglobal.com 77

San Francisco County, CaliforniaSan Mateo County, CaliforniaContactNAI Global+1 609 945 4000Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage IncomeMedianHousehold IncomeTotal PopulationMedian Age4,249,6444,362,6442,274,988$100,489$77,44040The San Francisco commercial market remained plagued byrising vacancy, declining rents and occupancy loss with theSeptember 2009 preliminary unemployment rate reaching10.4%. The market-wide vacancy rate rose to 15.3% at theend of 3rd quarter 2009. The San Francisco office marketcontinued to experience deterioration, though at a continuinglesser pace, despite signs of increased leasing activityas major companies looked to lock in long-term deals andtake advantage of attractive rents with generous concessionscurrently offered by Landlords. The market-widevacancy rate rose to 15.3% at the end of 3rd quarter 2009.The overall market continued to show occupancy lossending Q3 at 247,870 SF of negative net absorption. Theyear-to-date total amounted to nearly 1.7 million square feetof negative absorption, already exceeding 2008’s annualtotal of negative 1.3 million square feet. The overall annualmarket rental rates dropped $3.75 to $33.01 per squarefoot full service.The amount of sublease space remained flat during the3rd quarter at about 2.7 million square feet, or 3.2% ofthe total building inventory, showing early signs of somecompanies now shedding less excess space onto thesublease market and other companies leasing up thebargain sublease opportunities.San Francisco’s industrial/warehouse market contains 19.3million sf of base and includes users in both distribution andmanufacturing industries. The overall market-wide vacancyrate rose to 5.1% as it lost occupancy at negative 110,500square feet of net activity. Year-to-date net absorption hasalready tallied a negative 413,180 square feet, nearly equivalentto its highest amount of annual occupancy loss seenin 2001. Market-wide industrial asking rates dropped lowerto $0.76 per square foot industrial gross. The marketrecovery still remains to be seen. The availability rate isexpected to continue to go up as demand remains slow.San Francisco’s first quarter 2009 retail vacancy rate wasthe lowest in the country at 2 percent, remaining unchangedfrom year end 2008, and far below the national average of7.2 percent. Average asking rates dropped 4.6 percent to$38.14 per square foot. Of the top metropolitan areasthroughout the country, San Francisco’s low vacancy rate isreflective of our individual market demand in our supplyconstrainedurban environment.ContactNAI Global+1 609 945 4000Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage IncomeMedianHousehold IncomeTotal PopulationMedian Age709,558715,897374,088$116,511$89,76340.8San Mateo County is home to the San Francisco InternationalAirport and some of the world’s leading technologycompanies. World-class universities, world-class culturalvenues, a diverse labor pool and abundant intellectualresources of working capital make this region one of thebest locations to conduct business in the United States.San Mateo office vacancy peaked above 18% in 2009,climbing 680 basis points from 2008. The average askingrate decreased a dramatic $10.32 in the past year to$31.92/SF per year for full service properties. Since 2007,nearly 5.7 million SF of office space has been absorbed fromSan Mateo County's available marketplace. The city of SouthSan Francisco’s vacancy rate remained high at 25.7% inQ3 2009 compared to 26.4% a year ago and 13.9% in2007. Belmont/San Carlos also remains among the highestin San Mateo County at 24.9%.R&D vacancy continues to increase, closing Q3 2009 at16.11%, an increase of 239 basis points from 2008. Theaverage asking rate closed Q3 2009 at $27.96/SF NNN peryear, down $2.88 from 2008. The County has recorded over36,000 SF of negative net activity year-to-date in 2009.Manufacturing vacancy closed Q3 2009 at 4.57% with anaverage asking rate of $10.68/SF NNN. San Mateo County’swarehouse vacancy pushed into double-digit territory from5.3% in Q3 2008 to 11.0% in Q3 2009. The average askingrate closed Q3 2009 at $9.24/SF NNN. In the past year, thewarehouse market has absorbed 2 million SF of inventory.Future retail developments include a redevelopment andnew construction at 1450 Howard Avenue in Burlingamewith a new 44,000 SF Safeway store with an additional13,000 SF of retail space.San Francisco At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAIL$$$N/A19.0018.00N/AN/AN/A5.40N/AN/A$$$N/A70.0040.00N/AN/AN/A16.20N/AN/A$$2$N/A36.428.72N/AN/AN/A9.12N/AN/AN/A14.4%13.8%N/AN/AN/A5.1%N/AN/ADowntown$ 28.50 $ 750.00 $ 76.33 6.7%Neighborhood Service CentersCommunity Power Center$ 28.20N/A$ 65.00N/A$ 45.06N/A3.6%N/ARegional Malls$ 24.00 $ 150.00 $ 71.37 1.5%DEVELOPMENT LAND Low HighOffice in CBD (per buildableSF)Land in Office Parks (per acre)Land in Industrial Parks (per acre)Office/Industrial Land - Non-park (per acre)Retail/Commercial Land (per acre)Residential (per acre)N/AN/AN/A$ 1,700,000.00$ 1,800,000.00$ 2,000,000.00N/AN/AN/A$ 6,000,000.00$ 10,000,000.00$ 13,000,000.00San Mateo County At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)$N/AN/AN/AN/A11.40N/AN/AN/AN/A$ 162.00N/AN/AN/AN/A$ 35.04N/AN/AN/AN/A18.7%Class B (Secondary)INDUSTRIAL$ 6.00 $ 66.00 $ 25.20 24.8%Bulk WarehouseManufacturing$$4.564.56$$18.0018.00$$9.489.2413.5%11.0%High Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power CenterRegional Malls$$$9.00N/A18.0015.00N/A$$$45.00N/A54.0045.00N/A$ 27.96N/A$ 33.66$ 27.49N/A16.1%N/A3.8%5.1%N/ADEVELOPMENT LAND Low HighOffice in CBD (per buildable acre)Land in Office Parks (per acre)Land in Industrial Parks (per acre)Office/Industrial Land - Non-park (per acre)Retail/Commercial Land (per acre)Residential (per acre)$ 111.00 $ 870.00$ 1,500,000.00 $ 2,300,000.00$ 1,100,000.00 $ 2,645,000.00$ 1,110,000.00 $ 2,900,000.00$ 4,200,000.00 $ 5,500,000.00$ 775,000.00 $ 9,032,000.002010 Global Market Report ■ www.naiglobal.com 78

Santa Clara County (Silicon Valley), CaliforniaSanta Cruz County, CaliforniaContactNAI Global+1 609 945 4000Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage Income1,837,7791,922,925956,264$111,629Santa Clara County has one of the highest median familyincomes and boasts some of the highest rated educationalsystems nationwide. Many consider this county one of thebest places in the country to live and work. This area had beena main target for new office/R&D development in recent years,but due to weak demand stemming from economic declineand rising unemployment, developers have halted most newprojects altogether or until the economy recovers.Silicon Valley office vacancy hit 19.1% in Q3 2009compared to 13.6% a year ago, while availability was 14.2million SF, compared to 9.8 million SF in 2008. Both arerecord high levels. The average asking rate slid $2.04 thepast year to $32.76/SF per year for full service properties.R&D vacancy also grew to 19.1% in Q3 2009, a heftyincrease of 5.7 million SF from 15.6% a year ago. Theaverage asking rate was $12.96/SF NNN, down $2.52from Q3 2008. The velocity in these sectors softened anddecelerated as Q2 and Q3 consecutively fared much betterthan the horrendous Q1 2009.Manufacturing vacancy was 8.35% with an average askingrate of $8.16/SF NNN in the Q3 2009, while warehousevacancy was 8.85% with an average asking rate of $5.16/SFNNN. Both vacancies are up and both asking rates are downfrom a year ago. Notably, warehousing did note a reductionin vacancy and positive net absorption in the Q3 2009.Silicon Valley sales activity has been very anemic, though ithas accounted for a good portion of the total activity in theBay area and minor quarterly up-ticks have recently beenrealized. Reports indicate Silicon Valley has the least amountof distressed real estate nationwide.We are still a few quarters from the market's bottom, butthe Silicon Valley has several economic and employmentadvantages compared to other areas in the country andshould be positioned well ahead of the curve for commercialrecovery once we experience sustainable economic recoveryand job growth.ContactNAI Global+1 609 945 4000Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage Income255,778265,553117,912$85,822Santa Cruz County, an area rich in natural beauty, covers439 square miles, making it the second smallest county byarea in California. With its six state parks, attractive beachesand famous Santa Cruz beach boardwalk, the countyremains one of the West Coast’s most famous seaside playgrounds.The economy is still largely dependent on seasonaltourism and agriculture, but is becoming more diversifiedwith businesses in the high-tech, software and educationalindustries.In accordance with the slumping economy, Santa CruzCounty office/R&D vacancy increased for eight consecutivequarters, rising from 9.8% in Q3 2007 to 12.9% in Q32009. Meanwhile, the average asking rate fell by $1.20/SFover the past year to $22.32/SF for full service properties.Total availability grew to 954,000 SF countywide in Q32009. This market has not hit the 1 million SF mark since2004. Sublease space totaled 134,000 SF, or 14% of thecounty’s total office availability, compared to 185,000 SF,or 23%, a year ago. Through the first three quarters of2009, reported net absorption totaled a negative 153,200SF, more than the total negative net activity of 2008 and2007 combined.Manufacturing/warehouse vacancy grew to 5.1% in Q32009, up from 3.9% a year ago. The industrial market had560,000 SF available in Q3, with roughly 10% composed ofsublease space. Sublease space nearly tripled from 2008.The average asking rate for industrial product was $8.88/SFNNN in Q3 2009, a sharp decline of $1.56/SF from 2008.Net absorption was negative 170,000 SF through the firstthree quarters of 2009, its most critical level since 2002.One positive trend for Santa Cruz County was the fall ofunemployment rates in Q2 and Q3, after reaching a high of13.5% in Q1 2009. However, unemployment did still remainin the upper 10% range at the close of Q3 2009.MedianHousehold Income$93,182MedianHousehold Income$67,389Total PopulationMedian Age37Total PopulationMedian Age38Santa Clara County At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIAL$$$$$$54.0025.2015.0030.0018.0015.48$$$$$$99.6085.2066.0084.0078.9661.20$ 50.92$ 43.44$ 27.00$ 57.00$ 35.60$ 26.8898.5%24.1%18.2%100.0%23.9%13.7%Bulk WarehouseManufacturing$$2.402.64$$8.4023.40$$5.168.168.9%8.4%High Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power Center$$$$3.4824.0024.0027.00$$$$46.8072.0048.0060.00$ 12.96$ 48.00$ 36.00$ 43.5019.1%N/AN/AN/ARegional Malls$ 45.00 $ 125.00 $ 85.00 N/ADEVELOPMENT LAND Low/Acre High/AcreOffice in CBD$ 1,306,800.00 $ 3,310,560.00Land in Office ParksLand in Industrial Parks$$871,200.00653,400.00$ 2,178,000.00$ 1,306,800.00Office/Industrial Land - Non-parkRetail/Commercial Land$ 1,306,800.00$ 1,089,000.00$ 1,742,400.00$ 1,742,400.00Residential$ 653,400.00 $ 1,960,200.00Santa Cruz County At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)$$N/A24.0013.68N/A$$N/A28.8025.20N/AN/A$ 25.68$ 22.20N/AN/A40.1%7.1%N/AClass A (Prime)Class B (Secondary)INDUSTRIAL$18.60$12.00$$28.2027.00$ 23.28$ 21.8415.8%10.5%Bulk Warehouse$ 3.60 $ 12.00 $ 7.08 4.7%ManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power CenterRegional Malls$$$$4.6811.4018.0012.00N/AN/A$$$$16.2018.6042.0027.00N/AN/A$ 10.08$ 12.24N/AN/AN/AN/A5.4%14.7%N/AN/AN/AN/ADEVELOPMENT LAND Low/Acre High/AcreOffice in CBDLand in Office ParksLand in Industrial Parks$ 1,300,000.00N/AN/A$ 3,200,000.00N/AN/AOffice/Industrial Land - Non-parkRetail/Commercial LandResidential$ 522,000.00N/AN/A$ 1,500,000.00N/AN/A2010 Global Market Report ■ www.naiglobal.com 79

Sonoma County, CaliforniaVentura County, CaliforniaContactNAI Global+1 609 945 4000Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage Income459,348446,684240,062$80,118Sonoma County, “the gateway to the wine country,” isbordered on the south by Marin County, on the east by NapaCounty, on the north by Mendocino County and on the westby the Pacific Ocean. Sonoma is a highly regarded touristdestination with nearly 7.5 million visitors in 2008.Sonoma office vacancy was at a high of 11.2% in 2004,but has since climbed to 29.2% in Q3 2009. Vacancyincreased 300 basis points since Q3 2008. The averageasking rate decreased $1.32 in the past year to $20.80/SFfull service per year. Since 2004, nearly 4.8 million SF ofoffice space has been absorbed from the county’s availablemarketplace.The City of Santa Rosa remains relatively healthy withvacancy at 20.2% in Q3 2009, compared to 15.8% a yearago. Even with the vacancy spike, this submarket is still thelowest in Sonoma County. Petaluma’s vacancy remainsamong the highest in the county at 32.4%.Industrial vacancy remains on a healthy path, with Q3 2009ending at 13.9%, up 270 basis points since Q3 2008. Theaverage asking rate closed Q3 2009 at $8.25/SF gross peryear, down $0.24 SF from a year ago. Year-to-date 2009,Sonoma County has recorded about 610,000 SF of leasedspace. The industrial market has seen a slowdown in itsabsorption, although the food industry is taking advantageof this downturn by picking up large blocks of this space.Commercial sale activity has come to a stalemate during2009. Tenants and buyers are aggressively looking to takeadvantage of today’s soft market conditions, although at alevel that is sometimes more aggressive than landlords andsellers are able or willing to consider.We anticipate continued softening in values as capitalizationrates rise to accommodate perceived risk. Many are stillwaiting on the sidelines hesitant to commit due to currenteconomic conditions. There remains a large gap in perceivedvalues between owners and tenants/buyers.ContactNAI Capital (Ventura County)+1 805 278 1400NAI Capital (Westlake Village)+1 805 446 2400NAI Capital (Simi Valley)+1 805 522 7132Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage Income795,243857,787,305371,999$90,424Ventura County has certainly felt the impact of the recessionwith the demise of Countrywide, resulting in a negativeimpact on the office market. Vacancy rates are approaching20% and net absorption was negative through 2009 Q3.While this amounts to a substantial inventory, there is somegood news. Very little space is expected to return to themarket as it appears that Countrywide/Bank of America hasreturned the majority of its unused space. This will helpreduce vacancy rates for Class A space, the preferred spaceof Countywide.Demand for industrial space has slowed. A good deal ofthe decline is tied to the regional and national manufacturingsector and the Port of Hueneme. The port importsa significant number of the BMW automobiles that enter theWest Coast for US distribution. As demand for cars dwindled,so did the demand for industrial space related to warehousingand transporting. As it appears that world trade has begunto increase, it is likely that demand for industrial spacein Ventura County will also increase during the next 12months.The retail market also experienced contraction during therecession but seems to be improving. Rents have leveledoff and do not appear to be declining. In the WestlakeVillage/Thousand Oaks market, many centers have avacancy factor of less than 4%. The number of delinquenttenants has also dropped significantly and most retailersare reporting that sales activity is improving. One potentialproblem is a proposal by the City of Ventura to raise thesales taxes. If this ballot initiative passes, retail sales arelikely to fall across the board. This could have a negativeimpact on the demand for retail space.Tight credit conditions, increasing commercial default rates,and declining lease rates are negatively impacting the abilityof buyers to secure financing. As a result, the numberand dollar value of sales transactions is down considerably.However, low prices mean it is a good time to buy for thosewith adequate financing.MedianHousehold Income$67,472MedianHousehold Income$75,440Total PopulationMedian Age40.3Total PopulationMedian Age36.1Sonoma County At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIAL$$N/AN/AN/AN/A16.2016.20$$N/AN/AN/AN/A30.0030.00N/AN/AN/AN/A$ 21.96$ 18.84N/AN/AN/AN/A34.6%20.2%Bulk WarehouseManufacturingHigh Tech/R&DRETAILDowntown$$4.564.56N/AN/A$$12.0012.00N/AN/A$$8.288.28N/AN/A13.9%13.9%N/AN/ANeighborhood Service CentersCommunity Power CenterRegional Malls$$22.2015.00N/A$$$36.0042.0035.40$ 24.76$ 26.13$ 21.834.1%3.0%14.4%DEVELOPMENT LAND Low/Acre High/AcreOffice in CBDLand in Office Parks$N/A871,200.00N/A$ 1,306,800.00Land in Industrial Parks$ 435,600.00 $ 871,200.00Office/Industrial Land - Non-parkRetail/Commercial Land$$653,400.00871,200.00$ 1,089,000.00$ 1,306,800.00Residential$ 2,718,000.00 $ 2,613,600.00Ventura County At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power CenterRegional Malls$$$$$$$$$N/AN/AN/A27.0027.0021.004.204.806.00N/A6.6013.4517.00$$$$$$$$$N/AN/AN/A35.0035.0026.4010.807.8015.00N/A39.0034.0048.00$$$$$$$$$N/AN/AN/A30.0030.0024.0015.0012.6010.50N/A25.7023.6321.17N/AN/AN/A78.8%19.6%16.7%5.9%6.3%7.0%N/A9.1%5.4%2.3%DEVELOPMENT LAND Low/Acre High/AcreOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidential$$$N/A430,500.00350,000.00N/A525,000.00N/A$$$N/A1,300,000.00875,000.00N/A1,300,000.00N/A2010 Global Market Report ■ www.naiglobal.com 80

Colorado Springs, ColoradoDenver, ColoradoContactNAI HighlandCommercial Group, LLC+1 719 577 0044Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage Income632,079688,728298,947$70,092The economy for the Colorado Springs market has deterioratedsomewhat since year-end 2008. Troop increases atFort Carson, coupled with Department of Defense spendingat five military installations, plus defense contractors, havebeen a significant stabilizing force on the economy andprevented it from slipping further. The 12,000 troop increaseat Fort Carson through 2011 will add 30,000 people to theColorado Springs population.Citywide, Class A office vacancies are 18.5%, up from2008's 13.1% and the vacancy rate in the CBD is 9.5%, upfrom 8.6%. Asking rates are down $0.18-$0.28/SF and thestrike rates on completed deals are well below asking rates.Year-to-date absorption citywide is 242,234 SF. Salesprojected through 2009 are off 75% in sales price and 77%in square footage. There were no significant office buildingstarts in 2009.The industrial vacancy rate is 11.6%, up from 9.3% at theend of 2008. Average asking rates are down $0.57/SF.Sales projected to year end are off 67% on price and 63%on square footage. There were no significant industrial startsin 2009.Retail vacancy is up 1.2% to 9.7%. Asking rates are up$0.03/SF to $14.33/SF. Sales of retail properties are offroughly 50% in both square footage and price. A new Costcoopened in October 2009, with Lowe's and Kohl's closebehind in the University Village Shopping Center, which isan urban renewal project with additional pads and shopspace. The investment market has been very slow with bothinstitutional and 1031 buyers primarily on the sidelines andthe TICs trying to hold their assets. Sales have been primarilyowner-users utilizing SBA financing.The base economy is solid. However, without a significantincrease in primary jobs, we are looking at a slow recoverythat is subject to the vagaries of the national economy.ContactNAI Fuller+1 303 292 3700Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage Income2,570,1772,829,7421,321,562$78,583While Denver is healthier than most markets around theUnited States, it continues to have its share of concerns.The good news is, Denver has been attracting companiesfrom the renewable energy sector, including wind and solar,and there is hope that Denver will be viewed as a good placeto conduct “green” business.Office vacancy rates have inched up over the last year withlandlords being challenged by mounting tenant occupancycosts. Operating expenses continue to increase as well,making it challenging for owners due to their lower net rents.All agree that this should lead to pent-up demand thatshould see a spike in new leasing activity towards the middleof 2010.Historically, the industrial market has enjoyed a vacancy ratebetween 6% and 7% and now it is nearing 10%. Industrialowners have resisted making tenant concessions, but as weclosed out 2009 this began to change slightly. The goodnews is there are several large (100,000 – 200,000 SF)transactions in the market, which should fill some voids thathave been created due to the downturn in the economy.Denver’s retail sector suffered in 2009. Well located retail isstill holding its own, with outlying centers suffering the most.The lack of consumer confidence has decreased retail salesmaking it difficult for some tenants to pay their relativelyhigh rents. It could be several years before the retail marketstabilizes.The investment market in Denver is virtually non-existent.The lack of financing coupled with personal recourse andlarger equity requirements by lenders have made investingin commercial real estate challenging.Job growth drives the commercial real estate market anduntil we see an increase in jobs and the stabilizationof unemployment, 2010 could be more of the samefor owners. The key will be to pay attention to costs, likemaintenance and tenant improvements, in order to minimizerisk to the owner.MedianHousehold Income$61,930MedianHousehold Income$68,140Total PopulationMedian Age35Total PopulationMedian Age37Colorado Springs At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power CenterRegional Malls$$$$$$$$$$$$N/A13.5010.0015.5012.508.503.006.009.0011.5011.0018.0018.00$$$$$$$$$$$$N/A20.0014.5018.8016.0012.505.508.5013.5025.0030.0033.0029.00$$$$$$$$$$$$N/A15.9912.7017.0014.009.754.757.759.9616.5016.5024.0023.00N/A9.1%9.5%68.0%18.5%14.4%10.3%7.9%10.9%7.7%9.2%9.3%8.2%DEVELOPMENT LAND Low/Acre High/AcreOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidential$$$$$$871,200.00172,240.00150,000.00130,000.00261,360.0020,000.00$$$$$$3,800,000.00348,480.00200,000.00261,000.00871,000.0050,000.00Denver At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICEPremium (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIAL$$$$$$30.0022.0010.0022.0016.0010.00$$$$$$35.0030.0020.0028.0023.0016.00$ 31.00$ 24.00$ 15.00$ 26.00$ 20.00$ 14.007.3%13.1%19.7%7.3%17.9%19.1%Bulk WarehouseManufacturingHigh Tech/R&DRETAIL$$$2.004.004.50$$$4.507.0010.00$$$3.504.507.007.9%11.3%10.1%DowntownNeighborhood Service CentersCommunity Power CenterRegional Malls$$$$12.0013.0011.0013.00$$$$40.0030.0028.0050.00$ 25.00$ 17.00$ 20.00$ 26.009.1%10.3%11.5%7.1%DEVELOPMENT LAND Low/Acre High/AcreOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-park$$$$20.00250,000.0080,000.0080,000.00$$$$140.00500,000.00200,000.00240,000.00Retail/Commercial Land$ 200,000.00 $ 1,200,000.00Residential$ 30,000.00 $ 180,000.002010 Global Market Report ■ www.naiglobal.com 81

Delaware & Cecil County, MarylandWashington D.C.ContactNAI Emory Hill+1 302 322 9500Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage IncomeMedianHousehold IncomeTotal PopulationMedian Age365,831431,861175,945$62,172$48,29739Wilmington’s vacancy rate increased in 2009 while absorptionrates decreased. Local developers have acquiredexisting assets and have completed new construction, muchof which has remained vacant. Suburban office vacanciesrose sharply in 2009 while suburban development willcontinue with moderate pre-leasing activity. Industrial activityin New Castle County has been slow.Bank of America continues to consolidate into Wilmington’sCBD, bringing 500,000 SF of suburban office online. ClassB is forecasted to lease quickly as it has shown moderateactivity and net absorption throughout 2009. Suburbanoffice availability remains below the national average andhas stabilized for Class A and Class B properties. Class Arates dropped while vacancy rose, with a reduction in ClassB rates driven by increased sublease space. Developmentsites in Middletown and Newark represent an additional200,000 SF. Absorption and lease rates are expected toremain constant during early 2010. Medical office commandsthe highest rental rates and land prices remain unchangedfrom 2007.Since 2002, nearly 2.5million SF of industrial had beenabsorbed by automakers. In 2008, both Chrysler’s Newarkplant and Saturn’s New Castle plant closed. The Universityof Delaware purchased the Newark plant. Fisker Automotivepurchased the New Castle plant, where they will assemblea hybrid sedan. Industrial land absorption is expected toremain stagnant through 2010.Most of Delaware's new retail construction is mixed-usewith some strip centers in Northern Delaware opting foradditions and renovations. New construction is strongestaround the Christiana area. Southern Delaware continuesto see growth. Future development around Route 273 andChristiana Mall will bring nearly 2 million SF online in thenext few years.Cecil County, Maryland, has experienced increased industrialactivity due to aggressive county initiatives. Base RealignmentAnd Closure, which will transfer operations from FortMonmouth to Aberdeen Proving Ground in 2011, is affectingCecil County as new residents are relocating to the area.Accordingly, industrial interest remains strong throughoutthe county.ContactNAI KLNB, LLC+1 202 375 7500Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage IncomeMedianHousehold IncomeTotal PopulationMedian Age5,331,7755,398,3122,934,389$109,029$81,00137The Washington, DC, retail market experienced a declinein market conditions over 2009. However, the stimuluspackage has had a positive impact on the overall real estatemarket in Metropolitan Washington, DC, with several GSAleases signed during the year. The Recovery Act group itselfcompleted a lease for 12,000 SF at 1717 PennsylvaniaAvenue and Troubled Asset Relief Program (TARP) signedanother lease for 70,000 SF at 1801 L Street.The amount of vacant office space in the Washington markethas trended up over the past four quarters. At the end of2008, there was 395,912 SF of vacant sublease space.Currently, there is 447,301 SF vacant in the market. Moreof the same is expected for the balance of 2009 andthe beginning of 2010, but things could change quickly ifdemand shows any signs of recovery. With over 2 millionSF still scheduled to deliver in 2009, and an additional3.8 million scheduled for 2010, an easy prediction is anincrease in the vacancy rate through 2010. However,a potential tightening of supply may occur within the CBDduring the first half of 2010. Less than 850,000 SFexpected to be delivered, is located inside the CBD anddevelopment in the retail sector is still doing well.In the area locally referred to as NoMa (north of MassachusettsAvenue), the multi-faceted Constitution Square, whichconsists of approximately 1.6 million SF of space, is underconstruction with the retail section anchored by a new urbanHarris Teeter grocery store. The first delivery of space isexpected to occur at the end of 2010. In addition, ForestCity is building The Yards adjacent to Nationals Park. Morethan 400,000 SF of retail space and 2,800 residential unitsare planned.If employers slow the pace of job loss and the effects of thestimulus package continue, the District could see several ofits submarkets begin to tighten in 2010.Delaware & Cecil County, Maryland At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power CenterRegional Malls$$$$$$$$$$$$26.0026.0013.0024.0022.0015.503.50N/A10.0012.0018.0019.5055.00$$$$$$$$$$$$30.0028.0019.0028.0028.5019.007.00N/A20.0018.0023.0027.0075.00$$$$$$$$$$$$27.5026.0018.5026.0022.5018.504.25N/A14.0013.2520.0021.0060.0025.0%20.0%35.0%15.0%20.0%30.0%20.0%N/A18.0%10.0%15.0%10.0%5.0%DEVELOPMENT LAND Low/Acre High/AcreOffice in CBD$ 40.00 $ 75.00Land in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidential$$$$$300,000.00175,000.00150,000.00300,000.0035,000.00$$$$$550,000.00220,000.00450,000.00550,000.00225,000.00Washington DC At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power CenterRegional Malls$$$$$$$$$46.0035.0028.00N/AN/AN/A5.00N/A9.0025.0020.0015.0035.00$ 70.00$ 70.00$ 50.00N/AN/AN/A$ 16.00N/A$ 18.00$ 80.00$ 45.00$ 40.00$ 90.00$$$$$$$$$58.0051.0041.00N/AN/AN/A9.50N/A16.0055.0030.0020.0062.00N/A14.0%11.0%N/AN/AN/A16.0%N/A23.0%2.5%3.0%N/AN/ADEVELOPMENT LAND Low/Acre High/AcreOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidential$$2,600,000.00N/AN/AN/A2,600,000.00N/A$$96,000,000.00N/AN/AN/A96,000,000.00N/A2010 Global Market Report ■ www.naiglobal.com 82

Fort Lauderdale, FloridaFt. Myers/Naples/Port Charlotte/Bonita Springs, FloridaContactNAI Rauch, Weaver,Norfleet, Kurtz & Co.+1 954 771 4400Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage IncomeMedianHousehold Income5,305,1825,051,5132,792,167$71,345$51,044Fort Lauderdale is a service market for southeast Florida.The major industries are tourism, finance and service relatedbusiness with a strong segment of international trade.The area is serviced by three seaports, Port of Miami, PortEverglades and the Port of Palm Beach as well as threeinternational airports. Few sectors of the economy aregrowing. Most major industries are experiencing depressedeconomic conditions.The office market is experiencing declines in occupancy andrental rates and is expected to continue to weaken through2010. Values have dropped roughly 30% since 2007. Thereis no new construction in the market.Industrial vacancies are in the 12% to 15% range. Rentsare dropping, with many tenants asking for as much as 30%in rent reductions from landlords and landlords are accommodatingthose requests in order to keep tenants in theirbuildings. There is no new construction planned for 2010except for build to suit space.The retail market has experienced more vacancies eachmonth. Rents are being reduced in order to keep tenants intheir space. Many major retailers have closed stores andthis trend is expected to continue through 2010.New construction has become increasingly difficult. Investorsare holding off on major purchases unless they can buy at40% to 50% of previous values. Capitalization rates are upto at least 8.5% to 9.5%. Financing requires 30% to 50%down and coverage ratios of 1.25% to 1.35%.Multi family has some transactions but most sellers do notwant to discount prices. Sellers may not be able to sell theirproperties without taking huge losses or getting banks towrite down loans. Land sales are all but non existent exceptfor small build to suit deals. The supply of land has beenincreased due to the failure of so many car dealerships andseveral proposed buildings.The policy of most landlords is to do anything to keep thecurrent tenants in place as new tenants are few and farbetween. Lenders are extending loans in a delay and prayprocess. New construction is not on the horizon for 2010.ContactNAI SouthwestFlorida, INC+1 239 437 3330Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage IncomeMedianHousehold Income1,094,9381,184,949355,978$75,551$53,607Southwest Florida has many positive attributes with acoastal location and excellent quality of life for its residents.The region stretches from the 10,000 islands north to PortCharlotte, and from the Gulf of Mexico east to Lehigh Acres.The area has a significant amount of prominent, former andcurrent business executives and entrepreneurs who live inSouthwest Florida for a good part of the year. This wealth ofexpertise and experience serve as valuable resources to thebusiness community.The area is home to many institutions of higher learning;Edison State College, Hodges University, Ave Maria Universityand Florida Gulf Coast University, which is a member ofthe State University System of Florida. The number of well-educated students creates a valuable resource for localcompanies to draw from. Southwest Florida continues to behome to a growing population of young professionals withopportunities expanding to grow other industries, includingbiotechnology and healthcare.The John Madden Company is planning to break ground onthe Research Loop at the Southwest Florida InternationalAirport. This project will introduce new, high paying careeropportunities that will further propel the region, making itmore than a retirement destination.2009 brought with it a continued increase in vacancy andrental rates and an overall slowdown in development in allsectors of the marketplace. While many companies likeMcGarvey, JED of Southwest Florida and the East Group gearup for “green” and sustainable responsible development, theeconomy dictates they proceed with caution while remainingattentive to the needs and demands of the marketplace.Charlotte, Collier, Hendry and Lee counties reported anincrease in unemployment in 2009. Lee County's unemploymentrate rose to 13.9%, Collier County’s increased to13.1 % and Charlotte County’s figure grew to 12.7%. Theunemployment rate is not seasonally adjusted.The overall opinion is that 2010 will see a regional comebackas welcomed confidence returns to Southwest Florida.Total PopulationMedian Age40Total PopulationMedian Age44.2Fort Lauderdale At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIAL$$$$$$32.0028.0022.0024.0020.0015.00$$$$$$34.0032.0026.0026.0026.0020.00$ 33.00$ 30.00$ 24.00$ 25.00$ 23.00$ 18.50N/A17.0%10.0%N/A18.0%16.0%Bulk WarehouseManufacturingHigh Tech/R&DRETAIL$$$6.005.007.00$$$8.007.0012.00$$$7.006.009.508.0%9.0%10.0%DowntownNeighborhood Service CentersCommunity Power CenterRegional Malls$$$$15.0010.0020.0025.00$$$$30.0025.0040.0060.00$ 22.50$ 17.50$ 30.00$ 35.0010.0%15.0%8.0%7.0%DEVELOPMENT LAND Low/Acre High/AcreOffice in CBD$ 500,000.00 $ 1,000,000.00Land in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-park$$$400,000.00250,000.00250,000.00$$$650,000.00500,000.00500,000.00Retail/Commercial Land$ 650,000.00 $ 1,200,000.00Residential$ 200,000.00 $ 600,000.00Ft Myers/Naples/Port Charlotte/Bonita Springs, Florida At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power CenterRegional Malls$$$$$$$$$$$$$22.0019.0017.0020.0017.0016.003.503.757.007.0010.0012.0020.00$$$$$$$$$$$$$26.0022.0019.0026.0022.0019.005.004.5010.0013.0015.0018.0040.00$$$$$$$$$$$$$23.0020.0017.0022.0019.0017.004.004.009.009.0012.0014.0029.0020.0%20.0%15.0%50.0%50.0%22.0%20.0%27.0%20.0%22.0%19.0%20.0%20.0%DEVELOPMENT LAND Low HighOffice in CBD (per buildable acre)Land in Office Parks (per acre)Land in Industrial Parks (per acre)Office/Industrial Land - Non-park (per acre)$$$N/A217,800.00130,000.0090,000.00$$$N/A305,000.00215,000.00125,000.00Retail/Commercial Land (per acre)Residential (per acre)$ 450,000.00N/A$ 1,000,000.00N/A2010 Global Market Report ■ www.naiglobal.com 83

Jacksonville, FloridaMartin & St. Lucie Counties, FloridaContactNAI CommercialJacksonville.+1 904 358 2717Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage IncomeMedianHousehold IncomeTotal PopulationMedian Age1,344,5041,454,531663,969$68,792$54,95138Jacksonville's diverse economy makes it an ideal choice forrelocating and expanding businesses and its healthcaresector is emerging as a major medical player in the southeast.However, in 2009 demand in all markets was, at best,sluggish. Unemployment rates soared to 11.3% andconsolidations in the financial services sector produced aglut of sublease availabilities. With more than 40,000 peopleemployed in distribution/warehousing-related occupations,even Jacksonville's robust logistics sector contracted slightlyin 2009.Negative net absorption of 1,192,680 SF pushedJacksonville's 2009 office vacancy rate to 15.8%. Averagerental rates declined from 2008 levels to $18.53/SF, but asJacksonville’s hospitals grow in national and regionalstature, the need for additional medical office space shouldhelp reduce vacancies and spur an increase in rental ratesin late 2010 and beyond.Over $14.8 million in federal stimulus funds is earmarkedfor infrastructure improvements at The Port of Jacksonvilleand additional funds are awaiting approval. Even so, productdelivered to the Port waned in 2009, as did distributioncompanies' expansion plans. As a result, industrial constructionthat commenced and completed in 2008 and 2009was left temporarily vacant at a rate of 10.3%.Jacksonville's retail market behaved in accordance withdepressed national market standards in 2009. Eleven retailsales transactions with a total volume of $22.8 millionand an average price of $78.17/SF closed in 2009.In 2008, the market posted 15 transactions with a totalvolume of $59.2 million and a price per SF averaging$161.83. After 2008's record expansion of the multifamilymarket and the demise of the condominium conversionmarket, demand for apartments plummeted in 2009. Thefallout from non-existent home sales and decline in Floridain-migration forced Jacksonville's 2009 apartment vacancyrate to 13.7%, more than double 2008’s rate of 6.3%.One of Jacksonville's largest 2009 office transactions wasthe lease of 43,008 SF for the new corporate headquartersof Xorail, Inc. brokered by NAI Commercial Jacksonville. Thecompany also represented D&H Distributors in the lease of79,652 SF of industrial space to Invacare Corporation.ContactNAI South Coast+1 772 286 6292Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage IncomeMedianHousehold IncomeTotal PopulationMedian Age415,435453,891135,521$69,787$49,89142.4The overall economy for Martin and St. Lucie counties hascontinued to contract as unemployment has reached 11.2%in Martin County and 14.7% in St. Lucie County. This hashad a negative impact on all sectors of commercial realestate. The area unemployment has also had a significantimpact on multi-family properties. The market for officespace remains slow as many companies with headquartersin larger metropolitan areas seek to close satellite offices insmaller markets.In the office market, the majority of leasing activity has beenin the form of tenants making a move from more expensivespace to less expensive space. Rents are in the range of$10/SF to $15/SF net for Class A and good Class B buildingsand occupancy has dipped to approximately 85%.The industrial market has been the hardest hit. There remainsapproximately 750,000 SF of vacant flex space and rentshave been reduced to the range of $5-$7/SF gross from$10-$12/SF in the boom years. Vacancy in the industrialsector is at nearly 50% for all property types.The retail market remains the most attractive. Small neighborhoodtenant spaces range from $12/SF net to $18/SFnet with the better positioned end caps and prime spacesexperiencing a higher rate. Several big box facilities remainvacant. Occupancy in the retail sector is approximately 85%.The bid/ask in Martin and St. Lucie counties for investmentproperties remains wide spread and financing investmentproperties remains a challenge.Land prices are at 20-50% of their value from the 2004-2006 period. Foreclosed, aggressively priced, bank-ownedland is predominant in the market. In the multifamily market,finished residential lots have shown stronger appeal in2009. Several transactions have closed in the $25,000-$50,000/lot range for lot packages ranging from 15-30 ormore lots.The overall outlook is better than at the beginning of 2009.Most investors and businesses feel there is genuine opportunitybut remain cautious in their outlook. It is expectedthat in 2010 foreclosures will continue to spread into thecommercial markets but there will be opportunities for thosein a position to take advantage of them.Jacksonville At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICEPremium (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power CenterRegional Malls$$$$$$$$$$$$$17.5017.009.9217.5017.0014.503.743.007.7010.318.8912.6414.69$$$$$$$$$$$$$19.7221.2318.9121.5021.5019.508.526.2214.9119.0421.6013.3936.21$$$$$$$$$$$$$17.8320.4117.8219.1020.6218.024.364.289.8914.3114.2913.0124.5116.2%16.1%12.4%12.2%13.8%17.2%10.1%12.8%13.3%8.2%10.3%12.9%7.4%DEVELOPMENT LAND Low/Acre High/AcreOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-park$$$$250,000.00125,000.00130,000.0085,000.00$$$$600,000.00425,000.00350,000.00550,000.00Retail/Commercial Land$ 125,000.00 $ 1,000,000.00Residential$ 8,500.00 $ 450,000.00Martin & St. Lucie Counties At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)$$$$$12.0012.007.0010.008.00$$$$$20.0016.0012.0015.0013.00$ 16.00$ 14.00$ 10.00$ 12.50$ 10.0015.0%15.0%25.0%20.0%20.0%Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAIL$$$6.005.004.00N/A$$$10.007.006.00N/A$$$7.506.005.00N/A25.0%50.0%50.0%N/ADowntownNeighborhood Service CentersCommunity Power CenterRegional Malls$$$15.0012.0015.00N/A$$$20.0018.0020.00N/A$ 17.50$ 15.00$ 17.50N/A15.0%20.0%18.0%N/ADEVELOPMENT LAND Low/Acre High/AcreOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidential$$$$$$450,000.00200,000.0075,000.00100,000.00500,000.0020,000.00$$$$$$650,000.00400,000.00150,000.00200,000.00875,000.0050,000.002010 Global Market Report ■ www.naiglobal.com 84

Miami, FloridaOrlando, FloridaContactNAI Miami+1 305 938 4000Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage IncomeMedianHousehold IncomeTotal PopulationMedian Age5,305,1825,051,5132,792,167$71,345$51,04440Experts in the market report that events leading into 2009caused an unprecedented decline in all facets of commercialand residential real estate. Activity quickly skidded to a haltand stayed at a virtual standstill during the first half of 2009.Foreclosures, short sales and loan restructurings were mostcommon. Predictions are that a bottom in the market wasreached and growth will resume in 2010, albeit at ananemic pace. It may be difficult to differentiate the growthfrom the stagnation.Investment activity is at a standstill due to a lack of financing,rising vacancy rates, lower rent rates and investorsdemanding increasing yields. Development activity is nonexistentas declining rents combine with rising vacancy andcapitalization rates to make development nonviable for up tothree years. Land prices are down by 50%.Office vacancy rates rose while rents dropped by more than10%. Certain submarkets, most notably the CBD & Brickell,are hardest hit as approximately 2 million SF are scheduledto be delivered in 2010 and 2011.Miami’s industrial sector suffered from the recession astransshipping slowed and smaller tenants failed. Vacanciesincreased weekly. Bankruptcies in the automotive andconstruction industries intensified problems. Rents andresale prices have dropped. Prospects for 2010 are grim asstagnation does not foster tenant growth.Retail demand has been hard hit. Consumer demand hasstopped, resetting to 2004 levels. Retailers are reevaluatingstore spacing and product offerings. Rents dropped andvacancies increased. Exceptions are local, well-capitalizedretailers. After waiting out the exuberance, they are selectivelyexpanding, negotiating favorable leases.Residential prices dropped 20-50% because of a lack ofend-user financing. Most multifamily projects are in a loanrestructuring, foreclosure, bankruptcy, short sale or someother workout. Some lenders sold their notes at a 50-80%discount. Others financed end-users, permitting lowerprices. It appears the bottom was reached in 2008; stayedflat in 2009 and will slowly increase in 2010.2010 will be a major transition year in most marketsegments as the final problems will be addressed and themarkets stabilize. If population and job growth resume, theMiami markets will accelerate at a pace faster than mostexperts predict.ContactNAI Realvest+1 407 875 9989Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage IncomeMedianHousehold IncomeTotal PopulationMedian Age2,124,2702,354,3811,121,730$68,690$53,35737The overall Orlando office vacancy rate stands at 15.1%,up from 12.3% one year ago. Average lease rates are downby 3.3%. Net absorption has been negative in four of thelast five quarters. Vacancies are highest in Class A propertieswhere average rents have declined by 6% over the past year.Vacant sublease space has increased in all submarkets.Built-to-suit headquarters have dominated new officeconstruction.The overall Orlando industrial vacancy rate stands at 13.2%,up from 8.3% one year ago. Average industrial lease rateshave dropped by more than 10.5% over the past year inresponse to four consecutive quarters of negative absorption.Vacancy rates are highest for flex product at 17.6%. Tenantsin every industry that supports industrial real estate arereluctant to commit to new leases and take advantage ofaggressive concessions, resulting in stagnant deal volume.Construction of new industrial space has halted throughoutthe market.Increasing unemployment and a decline in tourism haveimpacted the retail sector over the past year. Asking andeffective rents have dropped, while concessions increasedto more than 10% of asking rents. The market-wide retailvacancy rate is 8.3%, up from 5.7% one year ago. Newdeliveries have been dominated by single-tenant supercenters. Investors are waiting on the sidelines for distressedopportunities, though few have surfaced.Orlando is one of only two communities worldwide where anew medical city is being developed. The cluster of life sciencecompanies emerging here include a new University ofCentral Florida College of Medicine, East Coast headquartersof Burnham Institute for Medical Research, Nemours Children’sHospital, University of Florida Research Center, M.D.Anderson Cancer Research Institute, and Orlando VA MedicalCenter.The $600 million VA facility, due to open in 2013, will bethe first VA hospital built in the United States since 1995.Within 10 years, the cluster is expected to create 30,000jobs and generate $7.6 billion in economic impact.Miami At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power CenterRegional Malls$$$$$$$$$$$$43.0033.3126.5131.5926.9419.215.53N/A9.7425.8314.7513.0014.00$$$$$$$$$$$$49.5043.7331.5734.0938.0336.1210.83N/A19.3343.9245.1745.0053.72$$$$$$$$$$$$44.2738.2328.7332.2733.2527.227.41N/A13.1131.8624.4821.3731.1992.0%14.5%23.4%85.0%22.3%15.6%10.1%N/A9.3%4.7%7.0%6.8%2.3%DEVELOPMENT LAND Low/Acre High/AcreOffice in CBD$ 3,250,000.00 $ 5,445,000.00Land in Office Parks$ 653,400.00 $ 1,089,000.00Land in Industrial Parks$ 348,480.00 $ 653,400.00Office/Industrial Land - Non-parkRetail/Commercial LandResidential$$$435,600.00653,400.0087,120.00$ 1,089,000.00$ 3,267,000.00$ 5,445,000.00Orlando At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power CenterRegional Malls$$$$$$$$$$$$$24.0016.0015.0018.0011.0012.003.953.508.5018.0012.0018.0014.00$$$$$$$$$$$$$29.0032.0028.5040.0040.0028.007.008.0030.0035.0030.0030.0040.00$$$$$$$$$$$$$27.0024.5021.7024.0023.0021.005.654.7026.5028.0016.6015.7023.8036.0%20.0%17.0%49.0%17.3%14.6%12.3%12.5%6.2%10.4%11.6%10.6%4.6%DEVELOPMENT LAND Low/Acre $ 45.00 High/Acre $ 90.00Office in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidential$$$$$218,000.00130,000.0065,500.00218,000.0050,000.00$$$$$350,000.00260,000.00217,800.00653,000.00109,000.002010 Global Market Report ■ www.naiglobal.com 85

Palm Beach County, FloridaTampa Bay, FloridaContactNAI Merin HunterCodman, Inc.+1 561 471 8000Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage Income1,249,3921,208,909509,853$81,995The local economy continues to be impacted by negativeemployment trends. The single-family residential market hasbottomed while the condominium market has further to fall.The investment sale market in 2009 has been non-existentand too few transactions have occurred to predict whereprices will settle. A significant gap remains between bid andask as banks continue to be reluctant to foreclose on delinquentloans.The office market throughout the county is weak. Rentalrates are 15-25% below peak rates, with free rent and otherconcessions prevalent. The industrial vacancy rate for PalmBeach County has increased consistently from 8.9% in Q32008 to 12.5% in Q3 2009. Year to date net absorption isa negative 1,843,615 SF. The overall average rental ratedecreased to $7.44/SF with flex rates at $8.91/SF andwarehouse rates at $6.70/SF.Retail provides much of the same picture as the othermarkets. Boca Raton and Delray Beach have weathered thestorm best because of the density of population and strongdemographics. Discount tenants of all types have benefitedfrom the decreased rental rates and increased vacancy andhave used that as an opportunity to expand. The county ingeneral has seen retail rental rents retreat approximately20-30% from the 2006-2007 peak pricing. Along withprices losing ground, vacancy has increased to over 10%.New construction of speculative product in all property typesis at a virtual standstill and will remain there for at least thenext 12-15 months. The Northern Palm Beach office market,consistently a strong performer, suffers from the downturnin both residential real estate and financial services. TheSouth County office market has an overall vacancy of26.2%.The vacancy rates have been climbing steadily from 11.2%in Q4 2006. Overall absorption in South County, year to date,is negative 527,000 SF. West Palm Beach and its surroundingmarkets, mirror what is happening in the rest of the county.ContactNAI Tampa Bay+1 727 585 2070Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage Income2,771,8432,895,4841,277,414$64,708Service, retail finance, insurance and real estate are keydrivers of the Tampa Bay economy. Bio-science and other hightech industries are expanding, and the manufacturing base isgrowing as the regional economy continues to diversify.Having hit bottom in late 2008, the entire Tampa Baycommercial real estate market is rebounding at an acceleratedpace. Transaction volume has resumed to a morenormalized pace and activity levels increased during 2009.The Tampa Bay area investment apartment marketbottomed in Q1 2008, however the volume of transactionsis on the rise. REO bank foreclosures and troubled assetsare dominating the multi-family market with nearly 80% ofthe last 25 transactions closed having some sort of REOcomponent.Vacancy levels in the office market increased to 15%regionally. Sublease space continues to shadow the market.Concessions persist as the standard course of businessand tenants are looking at every space in the marketbefore committing. The sublease market is estimated at athree-year supply with the greatest amount of subleaseavailability concentrated in the suburban markets.The local industrial market suffers from an abundance offunctionally obsolescent product types with low ceilings andfixed interior components. New flex space in the I-4 corridoris the hot new market with several large facilities currentlyunder constructionThe retail market continues to be a challenging environmentbased on current economic trends. The market conditionshave stalled several new developments slated for 2009due to the credit crisis and lack of national retailer response.The new Cypress Creek Mall is currently slated for a 2011opening.The Tampa Bay investment market is a hotbed of opportunitywith values bottoming at nearly 50% of 2006 peak levels.Both institutional and local investor confidence and activityhave increased in 2009MedianHousehold Income$58,403MedianHousehold Income$47,986Total PopulationMedian Age43.2Total PopulationMedian Age41Palm Beach County At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICEPremium (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power CenterRegional Malls$$$$$$$$$$$N/A19.009.0034.5022.0015.004.004.006.0017.5014.0020.00N/A$$$$$$$$$$N/A$37.5029.8539.2240.0042.009.509.5011.7550.0040.0035.00N/A$$$$$$$$$$$N/A30.0020.0536.7330.9025.036.706.708.9125.6326.5024.63N/AN/A22.7%19.3%59.4%19.0%24.4%11.7%10.5%15.4%20.0%18.5%17.5%N/ADEVELOPMENT LAND Low HighOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidential$$$$N/AN/A305,000.00150,000.00400,000.00100,000.00$$$$N/AN/A525,000.00400,000.00900,000.00150,000.00Tampa Bay At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICEPremium (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIAL$$$$$$25.0021.0010.0025.0021.0010.00$$$$$$35.0032.0018.0035.0032.0018.00$ 30.00$ 28.00$ 14.00$ 30.00$ 28.00$ 14.0030.0%15.0%15.0%30.0%15.0%15.0%Bulk WarehouseManufacturingHigh Tech/R&DRETAIL$$$4.504.504.50$$$6.507.509.50$$$5.255.506.5020.0%20.0%20.0%DowntownNeighborhood Service CentersCommunity Power CenterRegional Malls$$$$9.0012.0016.0024.00$$$$14.0020.0020.0045.00$ 12.00$ 15.00$ 18.00$ 35.0020.0%20.0%10.0%5.0%DEVELOPMENT LAND Low/Acre High/AcreOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidential$$$$$$50,000.0050,000.0040,000.0035,000.00125,000.0025,000.00$$$$$$150,000.00150,000.00125,000.0075,000.00500,000.00175,000.002010 Global Market Report ■ www.naiglobal.com 86

Atlanta, GeorgiaHonolulu, HawaiiContactNAI Brannen Goddard+1 404 812 4000Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage IncomeMedianHousehold IncomeTotal PopulationMedian Age5,537,9296,190,6362,591,351$76,542$65,88035Metropolitan Atlanta is home to over 5 million residents and137,000 businesses. Atlanta’s diverse population, deep talentpool, strong local communities, global transportationand quality of life contribute to its economic strength andongoing growth. Atlanta ranks fifth in the United States forthe number of Fortune 500 headquarters. The Atlanta arearemains a haven for both national/international relocationsand expansions and is ranked second-least-expensive city inthe country in which to operate a corporate headquarters.Atlanta is also home to the world’s busiest airport with 30airlines and an average of 1,500 daily flights to over 250worldwide destinations. Additionally, Atlanta is the rail centerof the South and one of the five most important distributioncenters in the US, with two major rail carriers each operatingover 100 freight trains daily to and from Atlanta.The Atlanta Office market supply has outweighed the demand,pushing the vacancy rate up in the 19-22% range,creating negative net absorption and declining rental rates.With over 196 million SF of inventory, it is anticipated that theOffice market will experience more negative net absorptionand remain flat for 2010.At the close of the third quarter, the Industrial market, withover 560 million SF of inventory, reported a slowdown inabsorption. The amount of new construction has droppedconsiderably and although vacancy rates have climbed overthe past several quarters and rental rates decreased slightly,leasing activity remains active.Atlanta’s Retail market, with over 298 million SF of inventory,is reporting a slight decline in market conditions. Vacancyrates are hovering in the 10-14% range, negative net absorptionis reported and rental rates are down from the last severalquarters.One of the larger office projects under construction at theend of Q3 is Phipps Tower, a 486,000 SF building to becompleted in Q1 2010. The largest industrial lease-signingyear to date is the 556,800 SF lease signed by Smuckersin South Atlanta.ContactNAI ChaneyBrooks+1 808 544 1600Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage IncomeMedianHousehold IncomeTotal PopulationMedian Age895,361870,854431,431$80,939$66,05338Honolulu is the 51st largest economy in the United Statesand is a vibrant and resilient metropolitan city. The commercialreal estate market is expected to maintain limited growththroughout 2010. The dire projections for 2009 were lessthan expected and visitor arrivals, a major economicindicator for Hawaii, were greater than projected for 2009.The Honolulu market will benefit from the increase in theYen value as Japanese investors seek more value for theirinvestments.The Honolulu CBD saw 2009 end with vacancy rates above10.73% and negative absorption. Average asking rents are$2.91/SF gross per month. Landlords are very focused onretention and we are seeing a softening in asking rates andmore concessions such as free rent and liberal TIallowances. Market rates on average are 11% below theasking rates at year-end 2008.Oahu’s industrial market continues to outperform its mainlandcounterparts. The demand for bulk warehouse space hassoftened with the weakening of tourist arrivals, resulting inan island-wide vacancy rate of 5.22%. Average asking rentalrates for bulk warehouse space ranges from $0.95/SFto $1.20/SF net for the most desirable locations. Goingforward, we expect to see a leveling off in Oahu’s industrialmarket due primarily to a softening housing market andtourist arrivals; however, we anticipate renewed sales activityas opportunistic investors acquire available industrialparcels.Honolulu’s retail sector, which benefited from tremendousgrowth and an influx of capital for redevelopment projectsfrom 2006 through mid-2008, has changed considerably.Many retailers who are locked into long term leases atpreviously negotiated rental rates are finding the economicchallenges too difficult to navigate. Major shifts are projectedin hotel and resort property ownership as opportunities tobuy distressed assets that are irreplaceable become moreprevalent.Hawaii’s real estate market is firmly in a period of adjustment.This type of market always creates opportunity for theentrepreneurial investor and user. We are seeing anonslaught of extend and blend as well as lease assignments.We anticipate a stabilization of the market in the second halfof 2010.Atlanta At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAIL$$$$$$$$$23.0022.9116.2320.0019.7915.822.402.503.75$$$$$$$$$32.6226.2519.8325.8825.3419.403.253.507.00N/AN/AN/AN/AN/AN/AN/AN/AN/A92.0%22.1%19.9%75.0%12.2%17.8%12.1%13.1%15.6%DowntownNeighborhood Service CentersCommunity Power CenterRegional Malls$$$$10.0011.0010.0013.64$40.00$23.00$22.00$50.00N/AN/AN/AN/A8.0%14.5%9.5%4.1%DEVELOPMENT LAND Low/Acre High/AcreOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-park$$$$10.0075,000.0025,000.0035,000.00$$$$25.00200,000.0075,000.00150,000.00Urban Retail/Commercial Land $ 1,200,000.00 $ 4,000,000.00Retail/Commercial LandResidential$$150,000.0020,000.00$$400,000.00150,000.00Honolulu At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAIL$$$$$$$$$33.0027.0023.4028.2025.2015.0014.2811.4019.56$$$$$$$$$48.2439.0033.0045.0043.2027.0020.2819.5640.20$$$$$$$$$43.9234.6826.7646.9831.8022.2017.2815.4829.886.6%10.3%13.9%N/AN/AN/A7.3%5.0%3.2%Downtown$ 28.40 $ 210.00 $ 124.20 2.6%Neighborhood Service CentersCommunity Power CenterRegional Malls$$$32.7620.0448.96$$$64.9242.3679.80$$$48.8431.2064.322.5%7.1%2.6%DEVELOPMENT LAND Low HighOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidential$ 950,000.00 $ 6,700,000.00$ 655,000.00 $ 3,700,000.00$ 420,000.00 $ 2,700,000.00$ 375,000.00 $ 875,000.00$ 1,420,000.00 $ 12,000,000.00N/AN/A2010 Global Market Report ■ www.naiglobal.com 87

Boise, IdahoSoutheast (Idaho Falls/Pocatello), IdahoContactNAI Pinnacle+1 208 947 0019Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage IncomeMedianHousehold Income631,645740,193306,935$66,650$53,925Commercial Real Estate in the Boise Metropolitan areaexperienced high vacancy rates and decreasing lease rates.Unemployment has risen but is still below the nationalaverage. The high-tech sector has stabilized and mayincrease in 2010. Boise’s health care sector is growingalong with alternative energy. Retail, office and industrial aredown. Residential development has stopped. Much neededhighway work is providing economic stimulus to the area.Boise is still rated one of the best areas in the country tolive, work and start a business (Forbes), as reflected by thedramatic increase of company inquiries. With an educated,employable workforce, Boise State University and a greatquality of life, we see an upswing occurring in all markets in2010 except residential development. The industrial sectorhas been hit hard and vacancy rates have reached 11%.Lease rates are similar to the mid 1990s at around $0.32to $0.48/SF.Vacancy in the office sector is continuing to rise with anoverall 19.5% vacancy rate. Vacancy rates throughout thesubmarkets are ranging from 7.5% vacancy Downtown toover 25% in the Southwest Boise market. New constructionand owner occupied sales are down more than 50% fromlast year. Multifamily vacancies are under 8%, reflecting anincreasing market sector. Fully leased investment propertiesare still hard to find and when found carry capitalizationrates equivalent to national norms of mid 7% to high 8%.Retail is still location specific. An overall vacancy rate of 14%represents an increase over 2008. The big box retailers thatclosed are replaced by retailers new to the area, whichspeaks well for the vibrancy of the Boise Metropolitan Area.Owners in all sectors will continue to offer aggressiveconcessions such as free rent, lower rates, and increasedTI allowances.The Boise Metropolitan Area is once again poised to grow in2010 driven by new jobs from relocated companies. Retailand industrial sectors will increase first, followed by officeand residential. Quality of life will still be our driving forcefor 2010.ContactNAI Commerce One RealEstate, LLC+1 208 525 8088Metropolitan AreaEconomic Overview2008Population2013 EstimatedPopulationEmploymentPopulationHouseholdAverage IncomeMedianHousehold Income122,265134,83855,247$56,740$52,207Eastern Idaho is uniquely positioned to continue its steadygrowth and weather the economic storms facing the nation,with an economy fueled by a well-educated workforce,energy, medical technologies, agribusiness and tourism. InIdaho Falls, the strategically located 400-acre Snake RiverLanding development opened its Central Valley, an integralpart of the master-planned community that includes over 30acres of green space, walking paths, cascading waterfallsand a 3.65-acre lake.Plentiful recreation opportunities abound in the area, alongwith easy access to world famous destinations like JacksonHole, Grand Targhee and Yellowstone. Pocatello is a strategicallylocated logistics hub that is also home to the state'spremier health research university and a variety of new retaildevelopments, including Costco. Rexburg has benefited fromthe continued expansion of BYU-Idaho, led by the formerDean of the Harvard Business School.Eastern Idaho provides an abundance of opportunities forenergy related companies, including commercialization programsbetween the Idaho National Lab and private industry,and an increasing number of research parks and incubators.The INL employs over 7,500 scientists, researchers andsupport staff, providing economic stability in the region.Idaho is one of the top four states in the nation in green jobgrowth, with eastern Idaho being very attractive due to itsvibrant business environment, low cost of living, industriousworkforce and favorable local government support. Pocatellowas selected as the location for Nordic Windpower’sNorth American manufacturing facility because of its advantageouscost of operations, excellent workforce andcentral location to potential customers and transportation.Also in Pocatello, the Hawaiian company Hoku Scientific, iscontinuing work on its $390 million polysilicon plantscheduled to be finished in 2010.Areva’s $2 billion Eagle Rock uranium enrichment facility,located west of Idaho Falls, is slated for completion in 2014.According to a study by the Regional Development Alliance,the project could bring up to $5 billion in economic activityand create 5,000 direct and indirect jobs during construction.Total PopulationMedian Age34Total PopulationMedian Age32Boise At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power CenterRegional Malls$$$$$$$$$$$$$20.0016.008.0017.5012.006.002.643.725.529.007.0012.0019.00$$$$$$$$$$$$$25.0021.0014.5023.0019.5015.005.166.2412.2321.0019.0024.0028.00$$$$$$$$$$$$$23.5017.5012.0021.0014.5010.503.904.988.8816.0014.0018.0022.0010.0%5.5%7.5%15.0%18.5%21.0%11.0%5.7%15.4%8.5%25.0%10.4%8.0%DEVELOPMENT LAND Low HighOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidential$ 1,004,400.00 $ 1,306,578.00$ 206,910.00 $ 917,650.00$ 152,460.00 $ 315,810.00$ 128,066.00 $ 384,199.00$ 128,066.00 $ 866,844.00$ 15,900.00 $ 49,800.00Idaho Falls/Pocatello At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)N/A N/A N/A N/AClass A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIAL$$$16.0011.00N/AN/A10.50$$$18.0013.00N/AN/A14.00$ 17.00$ 12.00N/AN/A$ 13.0010.0%12.0%N/AN/A10.0%Bulk WarehouseManufacturingHigh Tech/R&DRETAIL$$$3.004.806.00$$$6.506.507.00$$$4.506.007.005.0%5.0%5.0%DowntownNeighborhood Service CentersCommunity Power CenterRegional Malls$$$$9.0011.009.0028.00$$$$12.0028.0017.0040.00$ 10.00$ 16.00$ 15.00$ 32.0018.0%14.0%18.0%2.0%DEVELOPMENT LAND Low/Acre High/AcreOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidential$$$$$$217,000.00217,000.0075,000.0040,000.00150,000.0015,000.00$$$$$$435,000.00435,000.00150,000.00150,000.00650,000.00100,000.002010 Global Market Report ■ www.naiglobal.com 88

Chicago, IllinoisSpringfield, IllinoisContactNAI Hiffman+630 932 1234Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage IncomeMedianHousehold IncomeTotal PopulationMedian Age9,540,7369,581,5564,981,030$79,857$66,13236Chicago, the third largest metropolitan area in the USafter New York and Los Angeles, is the most influentialeconomic region between the East and West Coasts.Situated at the geographical heart of the nation, Chicago’slocation advantages have fostered its development into aninternational center for banking, securities, high technology,air transportation, business services, manufacturing,wholesale and retail trade.The downtown office market experienced four consecutivequarters of negative net absorption and rising vacanciesduring 2009. Throughout the market, Class A and Class Bbuildings are suffering from the highest vacancies,each above 16%. While three projects representing over3.6 million SF were delivered during 2009, there is noongoing construction, as any proposed projects have beenput on hold until the financial markets and the economybegin to recover. Vacancy should level off in 2010 astransaction velocity continues to accelerate.Chicago’s suburban office market is composed of severalscattered pockets of corporate parks and high-rise officetowers and experiences historically higher vacancy rates,larger swings in net absorption, and lower asking rents thandowntown. Suburban vacancy rates have been risingsteadily since 2008, eclipsing 22% in 2009. Leasing activityis expected to pick up during 2010 as asking rents continueto slide and landlords offer aggressive concessionpackages. This should result in stabilizing vacancy rates forthe suburban office market.The second largest industrial market and the most importanttransportation hub in the country, Chicago’s industrialmarket was challenged during 2009 due to lack ofconsumer spending, difficulty obtaining credit and economicuncertainty. New construction projects are few as developershave responded to market conditions. Lack of new deliveries,combined with an increase in transactional activity, will helpthe market eventually rebound.Chicago’s expansive intermodal developments showcontinued success due to their ability to offer tremendoustransportation savings to importing operations. The nation’slargest inland port, the CenterPoint Intermodal Center,has fueled the regions growth, securing its importance bothnationally and internationally.ContactNAI True+1 217 787 2800Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage IncomeMedianHousehold IncomeTotal PopulationMedian Age207,549209,973150,563$60,441$55,95039Springfield, the capital of Illinois, accounts for approximatelyhalf of the population in the metropolitan areas of Sangamonand Menard counties. Springfield’s major employmentsectors are government, medical, public service and smallbusiness. Money for commercial real estate loans is readilyavailable. Springfield's current economy has been impactedto a lesser extent than that of the national economy.Government is the largest employer in the Springfield area.The two largest private employers in the region are St. JohnsHospital and Memorial Hospital, including the SIU School ofMedicine. Over the last year, there have been some majormedical developments including a cancer research center,a new hospital and a $40 million expansion of the SpringfieldClinic. Current medical developments include another50-bed acute care hospital and an orthopedic medicalfacility with rehabilitation services. Higher educationopportunities include the University of Illinois at Springfield,Southern Illinois University School of Medicine and LincolnLand Community College. Robert Morris University andBenedictine University at Springfield make up the privatecolleges in the area.Retail growth in Springfield is recovering with the opening ofnational chain stores and big-box users like Super Wal-Mart,Menards and Gander Mountain over the past 18 months.Scheels is planned to open soon in the area with a beliefthat other national chain stores will continue to locate inSpringfield. The Abraham Lincoln Museum and Library aretwo prestigious visitor/tourist attractions in Springfield.Recreation opportunities in Springfield are plentiful withover 30 public parks offering tennis courts, ice rinks andswimming pools. There are nine public golf courses, twocountry club golf courses, indoor/outdoor theatre venuesand a 4,235-acre lake.Despite the breadth of history, culture and recreationalopportunities found in Springfield, the cost of living remainslow. Springfield has consistently been one of the mostaffordable communities in Illinois with robust residentialsales in 2009.Chicago At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAIL$$$$$$$$$45.0030.0021.0023.0022.0017.502.153.005.75$$$$$$$$$60.0055.0036.0030.0030.0023.006.006.2510.00$$$$$$$$$50.0042.0028.0025.7423.1519.084.104.407.5035.2%16.1%17.0%18.6%23.4%23.5%11.7%11.7%11.7%Downtown$ 22.00 $ 220.00 N/A 8.2%Neighborhood Service CentersSub Regional CentersRegional Malls$$$12.0010.0020.00$$$26.0014.0080.00N/AN/AN/A9.6%9.8%7.8%DEVELOPMENT LAND Low HighOffice in CBDLand in Office ParksLand in Industrial Parks)Office/Industrial Land - Non-parkRetail/Commercial Land )Residential$ 80.00 $ 500.00$ 300,000.00 $ 700,000.00$ 120,000.00 $ 435,000.00$ 265,000.00 $ 575,000.00$ 700,000.00 $ 1,300,000.00$ 50,000.00 $ 1,000,000.00Springfield At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power CenterRegional Malls$$$$$$$$N/A14.0010.0026.0016.009.002.50N/AN/A8.0010.00N/AN/A$$$$$$$$N/A18.0013.5035.0020.0016.005.00N/AN/A15.0023.00N/AN/A$$$$$$$$N/A16.0011.0030.0016.0014.004.00N/AN/A11.0017.00N/AN/AN/A20.0%15.0%10.0%10.0%15.0%10.0%N/AN/A12.0%12.0%N/AN/ADEVELOPMENT LAND Low/Acre High/AcreOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidential$$$$$$450,000.00130,000.0035,000.0030,000.00130,000.005,000.00$$$$$$945,000.00250,000.00100,000.00200,000.00480,000.0025,000.002010 Global Market Report ■ www.naiglobal.com 89

Fort Wayne, IndianaIndianapolis, IndianaContactNAI Harding Dahm+1 260 423 4311Metropolitan AreaEconomic Overview2000Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage Income412,468418,327246,965$59,889The economic climate in the greater Fort Wayne marketdeclined slightly through 2009 with an unemployment ratein the six-county SMSA rising to 9.5%. Fort Wayne continuesto revitalize its downtown. A $30 million baseball stadiumand a 900-space parking garage have been completed, a$35 million Courtyard by Marriott Hotel is currently underconstruction and the $14.5 million residential condominium/retailcomplex is expected to break ground in thenear future.The retail market slowed again in 2009. The strongest majorretail submarkets are on the Dupont and Lima Roadcorridors in the Northern section of the city and along IllinoisRoad in the Southwest section. Orchard Crossing, whichopened in 2008, continues to be a draw, with Target andGoodman’s as anchor tenants along with 26 other possibleoccupants. The Maplecrest Road extension, connecting theNortheast residential markets with New Haven, will be completedby 2012 and should lead to future retail development.The industrial market has seen an abundance of largerfacilities become vacant while the demand for smallerindustrial buildings continues to remain stable. The officewarehouse market continued to be soft throughout 2009.Vacancy rates in this sector are at 15%. There has beenvery little construction in this sector over the past year andvery little is planned for 2010. This will remain the case untilthere are improvements in economic conditions and thefinancial markets.The office market is stable; however, vacancy rates are stillhigh. There is very little construction in the office industry,but the market is experiencing strong growth in medicaloffice space as Parkview Hospital constructs a new regionalmedical center in the I-69/Dupont interchange. BothParkview and Lutheran continue to expand with new medicaloffice buildings on their respective campuses.We project this market will continue to remain status quoover the next few years with unemployment remaining atcurrent levels within the six-county SMSA.ContactNAI Olympia Partners+1 317 264 9400Metropolitan AreaEconomic Overview92008Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage Income1,746,3731,870,6511,039,590$69,848The Indianapolis metropolitan area achieved high positivenet absorption in the office and industrial markets in 2009.Investment, retail and land sales continued despite adecrease in overall purchases. The Indianapolis populationis growing and employment levels in the area fared betterthan the rest of the state and other metropolitan areas.The industrial market had more medium distribution productconstructed than any other product type. In the past, constructionof modern bulk buildings added the most to overallinventory. This shift to smaller construction is expected tocontinue into 2010. A total of five buildings totaling 828,000SF were delivered to the market in Q3, with 420,000 SF stillunder construction at the end of the quarter. Speculativeconstruction will continue, albeit at a slower rate than in2007 and 2008. Rental rates ended Q3 at $4.46/SF, adecrease over Q2.The office market ended Q3 2009 with a vacancy rate of11.1%. The vacancy rate was unchanged over the previousquarter, with net absorption totaling positive 50,797 SF inQ3. Rental rates ended Q3 at $17.32/SF, an increase overthe previous quarter. Only one building totaling 109,219 SFdelivered to the market in Q3 with 709,591 SF is still underconstruction.The retail sector welcomed new vendors to the market,newly constructed strip centers and shopping centers anda variety of specialty restaurants. Several retailers enteredthe new midfield terminal at the Indianapolis InternationalAirport in Q4. The retail market experienced an increase inactivity by discount retailers in 2008.The economy continues to improve as the employment andpopulation levels both increase. The multi-tenant officemarket continues to expand as inventory grows and the totalnet absorption of space is positive. Investors remaininterested in the industrial market as modern bulk facilitiesare still being delivered throughout the market.MedianHousehold Income$55,798MedianHousehold Income$61,107Total PopulationMedian Age37Total PopulationMedian Age36Fort Wayne At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power CenterRegional Malls$$$$$$$$$$$$N/A11.005.0012.9514.507.001.002.754.007.005.006.0010.00$$$$$$$$$$$$N/A15.5010.0017.5019.0012.003.005.008.0012.0018.0022.0035.00$$$$$$$$$$$$N/A13.257.5015.2516.759.502.003.886.009.5011.5014.0022.50N/A26.0%27.0%75.0%25.0%23.0%15.0%15.0%50.0%14.0%22.0%15.0%14.0%DEVELOPMENT LAND Low/Acre High/AcreOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-park$$$N/A120,000.0044,000.0065,000.00$$$N/A234,740.00125,000.00130,000.00Retail/Commercial Land$ 175,000.00 $ 1,000,000.00Residential$ 10,000.00 $ 40,000.00Indianapolis At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIAL$$$$$N/A15.0014.0015.0011.0010.00$$$$$N/A19.8317.0024.0023.5020.00N/A$ 16.50$ 15.00$ 18.00$ 20.00$ 17.00N/A10.6%4.9%13.7%14.3%9.9%Bulk WarehouseManufacturing$$3.403.70$$5.503.90$$3.403.5010.0%3.5%High Tech/R&DRETAIL$ 15.00 $ 17.50 $ 16.50 13.4%Downtown$ 8.00 $ 9.50 $ 8.50 9.2%Neighborhood Service CentersCommunity Power CenterRegional Malls$$$5.0010.007.00$$$17.5026.0033.00$ 16.00$ 22.00$ 22.0014.0%10.2%9.1%DEVELOPMENT LAND Low/Acre High/AcreOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-park$$$$784,000.00175,000.0065,340.0042,000.00$$$$196,200.00475,000.00152,460.0081,250.00Retail/Commercial Land$ 300,000.00 $ 1,200,000.00Residential$ 24,829.00 $ 108,900.002010 Global Market Report ■ www.naiglobal.com 90

Cedar Rapids, Iowa City, IowaDavenport, Bettendorf, Iowa and Rock Island, Moline, IllinoisContactNAI Iowa RealtyCommercial+1 319 363 2337Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage Income257,417268,328172,433$65,707Cedar Rapids, Iowa City and Waterloo, the Eastern IowaCorridor, are still recovering and rebuilding from the historicfloods of 2008. With a loss in excess of $6 billion, the Corridor’smajor new industry is recovery and reconstruction.The floods and recovery will be the major area of economicactivity for years to come.Post flood, demand for Class A and B suburban office spacereached unprecedented highs with 94% occupancy andrates on a NNN basis from $13 to $16 for Class A space and$10 to $12 for Class B space. Class C space remainedsoft with rates from $6.50 to $9 and an 82% occupancyrate. Cedar Rapids CBD space was 100% lost on the firstfloors and slowly recovering at this writing with rents below$10. Warehouse and industrial space is tight with an overallvacancy of 7.8% and average rents of about $5.50/SF.Because of strategic location midway between Chicagoand Omaha and St. Louis and St. Paul, warehousingremains quite active and any large vacancies are typicallybackfilled readily.As elsewhere, retail has been slow with little movement andprices are steady in the $10 NNN range for second and thirdgeneration space. The major centers have been able tomaintain high (88%+) occupancy with little rent erosion. Ourmajor retail center, 2,300,000 SF in Coralville, maintains anear 100% occupancy. Rebuilding is expected to return over100,000 SF of Class A and B office/service/retail space tothe CBD of Cedar Rapids in the next few years. In addition,new City, County and Federal Government buildings areplanned in the CBD to replace those destroyed.A recent sale of a neighborhood mall at $9.5 million and amobile home park at $12 million show that players are stillinterested in the Corridor area. As money loosens, there area number of investment properties that are and will becoming available.ContactNAI Ruhl & RuhlCommercial Company+1 563 355 4000Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage IncomeMedianHousehold Income373,332366,440221,583$58,670$51,007The Quad Cities (Davenport and Bettendorf, Iowa, and RockIsland and Moline, Illinois), the four cities bordering theMississippi River, continue to be a vibrant community inwhich to do business. The area’s largest employer, the RockIsland Arsenal, continues to add jobs while other largeremployers are reducing their labor force by modest amounts.While there is a slight oversupply of office space, landlordsare holding steady in their asking rates. This has causedlandlords and tenants to become savvier in lease negotiations,resulting in leases that include rent abatement, rentalrates to be stair-stepped over the term of the lease, moretenant improvements being paid for by property owners andshorter lease terms.Whereas retail has been challenged nationally in 2008-2009, the Quad Cities has not seen the large run of closingsthat other areas have experienced, mostly because thetroubled companies nationally either do not have stores inthis market or the stores in the market have maintainedsales sufficient to escape closure. The Quad City area, with375,000 people in the MSA and over 900,000 people in a60-mile radius, remains attractive to retailers.Industrial real estate activity began slowing down in thesecond half of 2008. The slowdown continued into Q1 2009as local area manufacturers began laying off employees andputting expansion plans on hold in response to the nation’srecession. There was brisk activity through 2008 and into2009 from wind power manufacturers and logisticsproviders who were focusing on Iowa locations. Numerousprospects from many countries visited the Quad Cities areato view existing manufacturing facilities, greenfield sites fornew factories and storage sites.The Quad Cities has had slower but steady growth over theyears. Employment, housing and commercial developmentis not as oversupplied as many of the markets thatexperienced more growth before the recession. This hasbeen a very positive influence to the area’s more stablehousing and commercial real estate values.MedianHousehold Income$57,180Total PopulationMedian Age38Total PopulationMedian Age38Cedar Rapids At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICEPremium (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersSub Regional CentersRegional Malls$$$$$$$$$$$N/A10.007.0013.0013.0010.007.503.007.00N/A9.0010.0012.00$$$$$$$$$$$N/A13.0010.0013.5016.0012.006.5010.0015.00N/A12.0022.0045.00$$$$$$$$$$N/A11.508.0013.5013.5011.004.50N/A9.00N/A10.0014.0030.00N/AN/AN/AN/A6.0%18.0%7.80%5.0%N/AN/A15.0%10.0%2.0%DEVELOPMENT LAND Low/Acre High/AcreOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidential$$$$$N/A160,000.0040,000.0040,000.00165,000.0016,000.00$$$$$N/A280,000.00130,000.00160,000.00522,000.0045,000.00Davenport,Bettendorf, Iowa and Rock Island,Moline, Illinois At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power CenterRegional Malls$$$$$$$$$$$N/A13.007.0014.5013.0010.501.752.006.508.0010.004.00N/A$$$$$$$$$$$N/A18.0011.0021.0016.5013.003.505.008.5012.0028.0012.00N/A$$$$$$$$$$$N/A15.259.5016.5014.7511.252.633.507.5010.0015.006.00N/AN/A15.0%20.0%10.0%12.0%15.0%15.0%5.0%10.0%10.0%7.0%10.0%N/ADEVELOPMENT LAND Low HighOffice in CBD$ 6.00 $ 8.00Land in Office Parks$ 217,800 $ 392,040Land in Industrial ParksOffice/Industrial Land - Non-park$$43,56043,560$$108,900108,900Retail/Commercial Land$ 348,480 $ 609,840Residential$ 43,560 $ 87,1202010 Global Market Report ■ www.naiglobal.com 91

Des Moines, IowaSioux City, IowaContactNAI Ruhl & RuhlCommercial Company+1 515 309 4002Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage IncomeMedianHousehold Income564,915608,748366,008$70,130$59,831The Des Moines Metro’s position as the financial and insurancehub of the Midwest and the subsequent weakness within thatindustry has led to the instability of the market. Downsizingand widespread layoffs have created an inability to backfillspace that has been created due to the building of owneroccupied facilities.Allied/Nationwide Insurance recently completed the thirdphase of their downtown office development for a total of over1,000,000 SF. Aviva Insurance is currently constructing thefirst building of a suburban campus for mid 2010 occupancytotaling 360,000 SF. Wellmark Blue Cross Blue Shield isalso in the midst of building a 550,000 SF CBD facilitythat is being assisted by Des Moines’ commitment to newdevelopment surrounding a large redevelopment areaknown as Gateway West. Although this contributes to anamount of new construction that many larger markets wouldenvy, the vacancy that is being created when these companiesmove out of competitive space is currently placing downwardpressure on lease rates as owners compete to fill propertiesthat have historically enjoyed very low vacancy rates.The West Suburban Market continues to see the bulk of newdevelopment activity in the metro area. Over 400,000 SF ofnew, high cube warehouse was brought online in the past12 months along the Interstate 80/35 corridor. Developershave been able to lease much of this space prior to thecompletion of the buildings. In addition, several technologycompanies, such as Microsoft, have selected the market forhigh tech server farm facilities, which represent a substantialinvestment in the area. Although these projects have beenplaced on hold temporarily, sites have been acquired andsite plans approved.A new Super Wal-Mart recently broke ground in thenorthwest suburb of Grimes and is scheduled to open in thesummer of 2010. This appears to be kicking off the creationof a new retail node and is attracting interest from retailersthat have declared themselves in a slow growth mode.ContactNAI LeGrand & Company+1 712 277 1070Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage IncomeMedianHousehold Income141,240137,18780,169$59,654$48,657The metropolitan area includes Sioux City, Iowa, South SiouxCity, Nebraska, and North Sioux City, South Dakota. SiteSelection magazine ranked the Sioux City area number onenationally in economic activity among metros under 200,000people in 2007 and again in 2008. Strong developmentactivity in the agricultural business and food processingsectors were responsible for the ranking.The industrial market has a total of 15,250,000 SF, with afavorable 7.5% vacancy rate and steady new construction.Work is under way on a $400 million expansion by BeefProducts, Inc. in South Sioux City, which is the largest singleinvestment ever made in Nebraska. The most significantindustrial news is a $10 billion, 400,000 barrel oil refineryplanned by Hyperion Resources of Dallas that would be thesecond largest construction project in the history of theUnited States. The company has obtained options on over10,000 acres and a countywide referendum approved arezoning petition for the project. Construction is likely tobegin in 2011.Sioux City is the dominant retail center in the region with6,098,000 SF of space. Retail sales have steadily increaseddue to a large amount of new space coming on line, butit was only a matter of time until overbuilding outpaceddemand. Many properties are experiencing rising vacancyrates and falling rental rates, creating a favorable marketfor tenants.The office market consists of 5,572,000 SF, and has maintaineda split personality. The professional sector remainsweak due to the lack of white collar job growth, while themedical market is robust. Medical space has accounted fornearly half of all office construction since 2000. The DakotaDunes submarket thrives with just a 2.8% vacancy rate, thehighest average rents in the region, and more space underconstruction.The Sioux City area will experience an unprecedentedeconomic boom if the proposed Hyperion Energy Centergoes forward. A research study estimates the project wouldresult in 14,000 new jobs and add $14 billion in annualeconomic activity to the market.Total PopulationMedian Age36Total PopulationMedian Age37Des Moines At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICEPremium (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power CenterRegional Malls$$$$$$$$$$$$$23.0013.008.0014.0013.5012.252.502.902.2010.808.009.006.50$$$$$$$$$$$$$26.0020.0014.0025.2522.0015.505.006.255.7516.0013.0020.0028.50N/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/A24.0%10.7%3.7%N/A11.2%7.5%7.2%6.9%7.8%5.5%7.6%5.7%17.7%DEVELOPMENT LAND Low/Acre High/AcreOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidential$$$$$$348,480.0035,835.0043,000.0040,000.0045,000.0013,000.00$$$$$$450,000.00450,000.00305,252.00554,919.00900,000.0035,000.00Sioux City At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power CenterRegional Malls$$$$$$$$$$N/A10.008.0016.2514.007.501.501.50N/A5.0010.0011.0030.00$$$$$$$$$$$N/A15.5613.0020.8820.0012.005.253.50N/A15.0018.5024.0045.00$$$$$$$$$$$N/A13.009.5018.0016.0011.004.003.00N/A10.0014.0016.0035.00N/A5.0%20.0%N/A4.0%13.0%10.0%4.0%N/A33.0%10.0%11.0%7.5%DEVELOPMENT LAND Low/Acre High/AcreOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidential$$$$$N/A130,000.0025,000.0015,000.00260,000.0010,000.00$$$$$N/A260,000.0055,000.00218,000.00870,000.0040,000.002010 Global Market Report ■ www.naiglobal.com 92

Wichita, KansasLexington, KentuckyContactNAI John T. ArnoldAssociates, Inc.+1 316 263 7242Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage IncomeMedianHousehold Income604,427626,523342,244$64,274$54,875As the Wichita Metro area entered the economic downturn,all its major sectors--aircraft manufacturing, energy,agricultural and healthcare--were in excellent health. Thelocal unemployment rate at the beginning of 2009 was6.0%. As the local economy softened, the unemploymentrate rose to 8.9%, largely due to layoffs in the aerospacemanufacturing industry.The commercial real estate rental rates and market valueshave not decreased appreciably from last year; however,the transaction volume as a whole is down approximately30-40%. Vacancy rates in the industrial sector haveincreased approximately 3%, while the office and retail rateshave only increased approximately 1%. Sales of commercialproperty due to bank foreclosures are not yet significant.This is largely due to long term stability in lease rates andproperty values. However, sales of development land for newprojects are down significantly.Local and national restaurant chains are opening new storesin the Wichita market. The Burger King franchise will beopening four new stores in 2010, and Spangles, a localchain, will be adding a new location as well. By the end of2009, construction will be complete on the 15,000 seat,$185 million downtown Intrust Bank Arena. This facility isdebt-free and was financed through sales tax revenue.Also under construction is the National Center for AviationTraining. This 222,000 SF world-class training facility willprovide students the opportunity to receive hands-on,real-world training in the areas of general aviation manufacturingand aircraft and power plant mechanics. The $54million, 1,300-student facility will open in the fall of 2010.The employment rate has stabilized and is expected to beginto rise again in 2010, but the economy is predicted toimprove slowly as the aircraft industry rebounds. Financingfor new construction remains challenging. Energy, healthcareand agricultural sectors are expected to experiencestability and modest growth in 2010.ContactNAI Isaac+1 859 224 2000Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage IncomeMedianHousehold Income553,080600,196268,464$63,094$50,307Lexington’s commercial real estate market continues toexperience reduced activity. There has been an increase invacancy in all segments of the market. Since Lexington isnot overbuilt, occupancy is expected to rebound in 2010.2010 should also yield opportunistic property purchases asa vast amount of equity anticipates asset re-pricing and REOsales.The office market has experienced a decline in occupancyin the suburban market and the CBD. Office constructionhas slowed significantly, which will assist the market inrecovery and increase occupancy as the economy improves.Rental rates have declined but should stabilize in 2010.Retail remains slow with little growth planned for 2010.Value-oriented retailers continue to expand on a selectedbasis while rates remain stagnant.Property owners have been more flexible to lease vacancies.Recent activity has occurred in small office/warehouses andsome adaptive reuse of older bulk warehousing. Industrialwill remain stable for 2010 with gradual absorption ofvacancy and limited new construction.Investment has been quiet in 2009 with an apparentdisconnect between buyers and sellers. Buyers are seekingadjusted capitalization rates based on the re-valuation ofassets. Sellers have not been willing to reduce prices. 2010should see increased sales with an improving economy.Several student housing projects and new market rate complexeswere completed in 2009. This has caused anincrease in vacancies, particularly student housing. Due tothe lack of existing zoned multifamily land, very few projectswill be started in 2010.Vacant land is near a historical low. There is a communityeffort to utilize techniques to encourage growth through urbanredevelopment. Farm real estate values for the year are $750higher than the national average.Lexington should weather the recession better than mostareas due to its broad-based economy, central geographiclocation and controlled zoning and development, whichprevents significant overbuilding in the commercial sector.Total PopulationMedian Age35Total PopulationMedian Age36Wichita At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAIL$$$$$$$$N/A11.009.0023.5018.0011.002.503.507.00$$$$$$$$N/A16.5011.0027.0021.0013.503.756.0011.00$$$$$$$$N/A14.0010.0025.0019.0012.003.504.0010.00N/A9.0%17.0%4.5%8.5%15.0%8.0%10.0%5.6%DowntownNeighborhood Service CentersCommunity Power CenterRegional Malls$6.00$12.00$10.00N/A$$$12.0016.0022.00N/A$$$10.0014.0015.00N/A12.6%9.0%6.0%N/ADEVELOPMENT LAND Low/Acre High/AcreOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidential$$$$$$200,000.00190,000.0070,000.00170,000.00240,000.005,000.00$$$$$$900,000.00450,000.00165,000.00250,000.00960,000.0020,000.00Lexington At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power CenterRegional Malls$$$$$$$$$$$$N/A17.0013.5018.0017.0016.003.003.758.0010.0011.0015.0030.00$$$$$$$$$$$$N/A20.0016.0022.0020.0017.004.504.7515.0020.0021.0028.0075.00$$$$$$$$$$$$N/A18.5015.0019.0018.0016.004.004.2511.5015.0017.0021.0050.00N/A10.5%8.6%40.0%16.3%11.8%14.8%7.5%9.4%25.4%11.7%9.4%0%DEVELOPMENT LAND Low/Acre High/AcreOffice in CBD$ 40.00 $ 60.00Land in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidential$$$$$425,000.00125,000.00125,000.00575,000.0040,000.00$$$$$850,000.00140,000.00500,000.001,200,000.00135,000.002010 Global Market Report ■ www.naiglobal.com 93

Louisville, KentuckyBaton Rouge, LouisianaContactNAI Walter Wagner, Jr.Company Realtors, LLC+1 502 562 9200Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage Income1,252,7951,299,624684,103$61,277Over the past year, metropolitan Louisville’s commercial realestate market has weathered the recession relatively wellin spite of an unemployment rate that rose four points to10.3% and a limited influx of new businesses to the area.In other good news, home sales are up approximately 15%over 2008.The Louisville office market ended Q3 2009 with a vacancyrate of 11.2%, up from 10.7 % in 2008. Class A vacancystood at 13.3% compared to 13.7% for Class B and 6.9%for Class C space, The CBD reported a vacancy rate of 5.9%for Class A buildings. Net absorption was negative 68,943SF. The average rental rate in all classes was $15.49/SF,a 0.3% decrease from the end of Q2 2009. Class A sectorrents averaged $19.91/SF, Class B stood at $14.68/SF andClass C at $12.16/SF.The retail market did not experience a significant changeover the first three quarters of 2009. The vacancy rateincreased to 8.6%, up slightly from 8.4% in 2008. Netabsorption wavered between positive and negative territorythroughout the year, with indicators pointing to a relativelyflat or slightly negative result for the year. Vacant subleasespace decreased by 3,715 SF. Rental rates also decreasedslightly, ending at $11.97/SF for the year.The industrial market ended Q3 with a vacancy rate of13.2%, a slight increase over the previous quarter and upfrom 12% a year ago. Net absorption totaled positive1,299,350 SF. Vacant sublease space decreased, endingthe quarter at 1,251,872 SF. Rental rates were $3.57/SF, anincrease over the previous quarter.Louisville’s downtown arena continues to be a bright spot asthe major construction project in the area. Scheduled toopen in 2010, the $250 million, multi-purpose arena isexpected to generate more than $100 million in downtowninvestment and construction.ContactNAI Latter & Blum+1 225 295 0800Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage Income773,208787,300387,346$60,749Baton Rouge, the Capital of Louisiana, has withstood theeconomic slowdown of 2008-2009 relatively well. Weeklywages increased from 2008, the Brooking Institution rankedBaton Rouge the sixth-best performing metro area in Q22009, and Forbes ranked Baton Rouge as the seventh-bestmid-sized city for job growth in the country.Baton Rouge has remained well insulated due to severaleconomic catalysts. Louisiana State University, with anenrollment of 35,000 calls Baton Rouge home along withseveral other universities and colleges. The inmost port onthe Mississippi River is located in Baton Rouge, generatinga strong barge and shipping base for industrial growth.Numerous plants take advantage of the Mississippi Riveraccess like DOW, Exxon, Shintech, Kaiser and Nucor.Other economic generators include Baton Rouge as thestate capital as well as having the I-10 and I-12 corridorrunning through the city. This provides a big boost to BatonRouge's hospitality sector. Medical is another large employerwith five major hospitals in the city.Although rental rates and occupancies have been holdingstrong across the board, Baton Rouge is finally seeing someinventory coming on line. Office vacancies for Class Aspace slipped to 9% citywide excluding the additionalsublease space that could top 100,000 SF or an additional2% vacancy by year’s end. Retail occupancies slipped aswell in 2009. Overall city vacancies were 12.4%, up 1%from a year earlier.The strongest sector this year has been multifamily with anear 95% occupancy rate citywide. In addition, the highestprice per door was paid for an apartment complex in thesale of the 300-unit Millennium, which topped $140,000per door.All things considered, Baton Rouge continues to show signsof a resilient economy with companies like Albemarleestablishing its corporate headquarters in the capital cityand outside investors looking at Baton Rouge and the GulfCoast region as a healthy place to invest.MedianHousehold Income$52,415MedianHousehold Income$47,801Total PopulationMedian Age39Total PopulationMedian Age34Louisville At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power CenterRegional Malls$$$$$$$$$$$$$18.2518.008.0018.5017.507.001.501.505.4511.0010.0015.0020.00$$$$$$$$$$$$$25.0024.0016.0025.0023.0014.004.504.508.2530.0020.0020.0040.00N/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/A7.5%8.3%N/A18.0%19.5%13.4%12.4%9.0%8.6%10.0%12.0%4.0%DEVELOPMENT LAND Low/Acre High/AcreOffice in CBDLand in Office Parks$$550,000.00940,000.00$ 1,900,000.00$ 1,450,000.00Land in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial Land)Residential$$$$25,000.0055,000.00150,000.0030,000.00$$$$110,000.00100,000.00850,000.00140,000.00Baton Rouge At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power CenterRegional Malls$$$$$$$$$$$24.0020.0012.5028.0017.9512.003.00N/AN/A12.008.0023.0012.00$$$$$$$$$$$28.0021.5016.0028.0023.0016.005.15N/AN/A24.0024.0040.0080.00$$$$$$$$$$$27.0020.7514.5028.0019.8014.754.00N/AN/A16.0015.0028.0035.0041.0%9.7%25.0%25.0%6.0%23.0%13.8%N/AN/A6.0%12.5%6.6%N/ADEVELOPMENT LAND Low/Acre High/AcreOffice in CBD$ 900,000.00 $ 1,750,000.00Land in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-park$$$215,000.00130,000.0080,000.00$$$350,000.00260,000.00350,000.00Retail/Commercial Land$ 350,000.00 $ 1,250,000.00Residential$ 15,000.00 $ 50,000.002010 Global Market Report ■ www.naiglobal.com 94

Monroe, LouisianaNew Orleans, LouisianaContactNAI Faulk & Foster+1 318 807 4666Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage IncomeMedianHousehold Income171,344170,50191,368$52,956$39,978The commercial real estate market for the NortheastLouisiana region has felt the effects of the tough economictimes but not as deeply as larger metropolitan markets.Although the market has seen a slowdown in activity, thearea has not experienced a distinct drop in property valuesor lease rates.Over the last year, Northeast Louisiana has seen severalsignificant business investments awarded to our region. Oneof these is V-Vehicle Co., a new American car company.V-Vehicle selected Monroe as the site for its assemblyplant resulting in the addition of 1,400 jobs. V-Vehicle'scapital investment is estimated at $248 million. Two othermajor announcements were from Gardner Denver Thomasconsolidating its operations to Monroe with 230 new jobsand Foster Farms investing $20 million to renovate andreopen a processing plant, thereby saving 1,100 jobs.An analysis by university economists issued a jobs forecastfor 2010 and 2011 for the state of Louisiana and namedMonroe as the city that will add jobs at the fastest pace.This is very welcome news after seven years of lost jobsin Monroe. The university economists estimate Monroe willlead in the percentage of new jobs, 2.5% or 1,900 jobs in2010 and 1,500 jobs or 1.9% in 2011. The growth of theregion through capital investment and job creation will spuran acceleration of economic activity both now as well asinto the future. Louisiana and our region will continue tocompete for new business investment for the state andthe region.We anticipate an increase in new real estate developmentand expansion opportunities as a result of these new additionsto our region.ContactNAI Latter & Blum+1 504 569 9300Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage IncomeMedianHousehold Income1,052,1311,078,373628,467$67,632$47,873More than four years since Hurricane Katrina and theensuing levee failures devastated New Orleans, federaldollars and rebuilding have helped cushion the local economyagainst the national recession. The metro area haslost 0.9% of its jobs since June, compared to 4.1% lostnationally. The New Orleans area unemployment rose to7.3% compared to 9.5% nationally.New Orleans is not immune from the current economiccrisis. The housing market has stalled with home salesdown 39% and new construction off by 48%. Infrastructureprojects have helped offset the drop in new construction.The office market has remained relatively stable in termsof occupancy and rental rates in the CBD and suburbs. Nospeculative inventory has been added in either market.The adaptive re-use of older, Class B and C buildingshas actually reduced available supply. The more than1.5 million SF of industrial space that was absorbed in themonths following Katrina by contractor’s utility crews andrelief workers has been returned. By the third quarter of2009, the inventory of industrial space in the metropolitanarea had climbed to more than 6.9 million SF, producinga vacancy rate of more than 13%. The first softening inrental rates and pricing is evident.The New Orleans economy is heavily dependent on thetourist and hospitality industries. Not surprisingly, thecutback in corporate travel, fewer and smaller meetingsand the drop in consumer spending has reduced visitationto the City. The loss of service sector population post-Katrina and higher local labor costs have reduced theprofitability of area hotels and restaurants in the face ofdecreasing revenues. Most industry observers do notexpect recovery in this sector until 2012.The lodging sector has produced unprecedentedtransaction volume. Since 2006, hospitality investment inthe CBD involved 2,894 CBD-French Quarter hotel rooms,with an aggregate value of $405 million. An additional $74million has been invested in the acquisition of 1,994storm-damaged rooms resulting in a total post-storminvestment of $479.2 million in the sector.Total PopulationMedian Age35Total PopulationMedian Age39Monroe At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersSub Regional CentersRegional Malls$$$$$$N/AN/A12.00N/A17.0010.002.50N/AN/AN/A8.0012.00N/A$$$$$$N/AN/A15.00N/A22.0012.004.50N/AN/AN/A15.0018.00N/A$$$$$$N/AN/A13.50N/A19.5011.003.50N/AN/AN/A11.5015.00N/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/ADEVELOPMENT LAND Low/Acre High/AcreOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidential$$$N/AN/A10,000.00130,000.00425,000.00N/A$$$N/AN/A40,000.00450,000.00650,000.00N/ANew Orleans At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersSub Regional CentersRegional Malls$$$$$$$$$$1$N/A16.0012.00N/A20.0018.002.002.509.0015.0012.005.0020.00$$$$$$$$$1$$N/A21.0018.00N/A23.0020.003.756.5015.0040.008.0029.0062.50$$$$$$$$$$$N/A18.5015.00N/A21.5019.002.904.5012.0027.5015.0022.0041.25N/A9.4%13.4%N/A9.4%12.2%13.2%15.0%10.0%14.0%15.0%10.0%5.0%DEVELOPMENT LAND Low/Acre High/AcreOffice in CBD$ 1,500,000.00 $ 6,500,000.00Land in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-park$$$150,000.00350,000.0090,000.00$$$812,500.00650,000.00175,000.00Retail/Commercial Land$ 261,360.00 $ 2,178,000.00Residential$ 30,000.00 $ 650,000.002010 Global Market Report ■ www.naiglobal.com 95

Greater Portland, Southern MaineBaltimore, MarylandContactNAI The Dunham Group+1 207 733 7100Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage IncomeMedianHousehold Income509,558500,330301,558$70,528$54,555Office leasing has seen a noticeable slowdown in transactions.A lack of activity and demand for space, withan approximate 10% vacancy rate, has resulted in a very"pro-tenant" atmosphere. Landlords in all sectors of themarket are making concessions to either induce new tenantsto come to their buildings or to entice existing tenantsto stay at reduced rates. Sale of medical/office buildings hasslowed and capitalization rates have risen, particularly insuburban sectors.The inventory of viable office investment properties is limitedand the number of capable buyers remains sparse giventhe tightened commercial lending situation. Speculativeconstruction of office buildings has stalled as ample existingspace is available at rates below what would be needed tojustify new construction. Lenders continue to shy away fromthese types of projects.Big box expansion, which led the previous growth cycle, hascome to a standstill. Target, Home Depot, Kohl's andWal-Mart supersizing have halted expansion in Maine.Spaces vacated by Circuit City, Linen's & Things, Tweeterand other bankrupt retailers, have been very slow tore-lease. This also tends to be the case with vacatednational restaurant sites. Vacancy rates for power centersand retail strips remain manageable, provided there is notanother large wave of store closings. Walgreens continuesto construct new stores in Maine, albeit at a slower pace.Rents have declined. Sam's Club has been evaluatingopportunities in Maine and Tractor Supply is building severalnew stores. McDonald's continues its program of upgradingstores as well as adding new stores in selected markets.Tim Horton's has initiated limited expansion in northern andcentral Maine and there has been additional supermarketexpansion in secondary markets. Lower-end discount storeshave also been active, including Ocean State, Marden's,Chapter 11 and Save-A-Lot. These stores were presentedwith opportunities to occupy prime vacancies at low rates.Maine has not escaped the effects of the national and globalrecession. The inventory of industrial space has balloonedsince the beginning of the year. However, the increasingvacancy rate has resulted in lower lease rates which areproviding tenants with attractive opportunities in the market.ContactNAI KLNB, LLC+1 410 321 0100Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage IncomeMedianHousehold Income2,686,9822,732,7541,323,649$83,898$64,415Baltimore's fundamentals have helped to insulate the cityfrom the current financial climate. The downtown officemarket continues to gravitate to the water as Inner HarborEast continues to build out. The new 600,000 SF headquartersfor Legg Mason opened in 2009 as the largest officepresence to date in that area. What will happen to the formerLegg headquarters at 100 Light Street remains a question.Buoyed by its proximity to Washington, DC, and the presenceof multiple government installations, Baltimore, the EastCoast’s farthest inland seaport, enjoys a marginal insulationfrom the global economic slowdown. The Social SecurityAdministration, the Health Care Financing Administration,the National Security Agency, Ft. Meade and AberdeenProving Ground are all federal government operations in thearea that employ Marylanders at well above average salaries.These agencies require significant private contractor supportwhich, in turn, supplies even better paying jobs.However, Baltimore is not immune to the credit crunch.The market has witnessed some recovery at the end of Q2.With asking rates hovering just shy of the $5 NNN mark forindustrial space, developers have sharpened their pencilsafter sitting on recently delivered product in a market thatwas flooded with new construction for most of 2008. Askingrates were previously based on construction costs andprojections that were developed during the boom timesof 2006 and 2007. The tenant has become king in theindustrial, office and retail markets, with multiple opportunitiesto upgrade space at competitive rates and aggressive terms.Well-financed users seeking to purchase buildings remainon the sidelines, patiently waiting for the market to hit whatthey perceive to be the bottom.Things might get worse before they get better. Newconstruction continues in the downtown market and nearly1 million SF of space is expected to enter the inventoryover the next year. Owners can fight by keeping an eyeon operating expenses and taking advantage of savingwherever possible.Total PopulationMedian Age42Total PopulationMedian Age38Greater Portland, Southern Maine At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power CenterRegional Malls$$$$$$$$$$$$$16.0015.008.0014.0010.008.002.503.504.7516.0010.0010.0018.00$$$$$$$$$$$$$21.0018.0015.0018.0014.0010.004.505.258.0030.0018.0022.0050.00$$$$$$$$$$$$$20.2517.0012.5016.0013.009.003.504.256.0025.0014.0016.0030.005.0%6.0%11.5%5.0%8.0%9.0%5.0%5.0%3.0%5.0%5.0%5.0%4.0%DEVELOPMENT LAND Low HighOffice in CBD$ 18.00 $ 25.00Land in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidential (per acre)$$$$$150,000.00125,000.0070,000.00250,000.0065,000.00$200,000.00$150,000.00$150,000.00$750,000.00$300,000.00Baltimore At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIAL$$$$$28.0020.0012.00N/A15.0010.00$$$$$38.0031.7522.50N/A32.0030.00$ 32.00$ 25.00$ 18.00N/A$ 26.00$ 20.00N/A13.8%12.4%N/A15.3%11.5%Bulk WarehouseManufacturing$ 4.00N/A$ 12.00N/A$ 5.00N/A14.4%N/AHigh Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power CenterRegional Malls$$$$4.0015.0015.0010.00N/A$$$$25.0050.0050.0016.00N/A$ 10.70$ 22.00$ 23.00$ 15.00N/A15.7%N/AN/AN/AN/ADEVELOPMENT LAND Low/Acre High/AcreOffice in CBDLand in Office ParksLand in Industrial Parks$$$650,000.00125,000.00100,000.00$ 3,000,000.00$ 1,500,000.00$ 1,350,000.00Office/Industrial Land - Non-park $ 50,000.00 $ 700,000.00Retail/Commercial LandResidential$ 300,000.00N/A$ 2,000,000.00N/A96 2010 Global Market Report ■ www.naiglobal.com 96

Suburban MarylandBoston, MassachusettsContactNAI Michael+1 301 459 4400Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage IncomeMedianHousehold Income5,331,7755,398,3122,934,389$109,029$81,001Suburban Maryland includes two primary counties and threesecondary counties. Both Prince George’s and Montgomerycounties border Washington, DC, and have the largestpopulations. Calvert, Charles and Frederick Counties furtheroutside of Washington, DC, and have smaller populations;however, these areas are continuing to grow due to jobsmarkets in both Washington, DC, and Baltimore, Maryland.In southwestern Prince George’s County, the name ofAndrews Air Force Base has been changed to Joint BaseAndrews–Naval Air Facility Washington. This change comesas currently the base is having over $1 billion in renovationsand construction, and is expected to grow even more in thenear future. Andrews is still the second largest employer inthe State of Maryland, next to the University System, whichhas recently opened its UMUC Campus in Largo. In northernPrince George’s, a limited industrial land supply is expectedto remain robust and keep this market strong.The office sector is expected to grow in the near future asthe Federal Government takes aim at the county’s undevelopedland, which is unmatched in the Washington, DC,metropolitan area for built-to-suit projects. MontgomeryCounty has extensive infrastructure in place due to the largeamount of science and technology firms located in the areaalong the I-270 corridor. This area hosts over 200 biotechcompanies, employs over 100,000 advanced technologyworkers and has attracted the highest concentration of PhDsin the nation. The new Inter County Connector (ICC) willconnect I-270 with I-95, allowing a 12-minute travel timebetween these two counties, thereby alleviating traffic onI-495 the Capital Beltway and allowing the growth of boththe Industrial and Office markets.This market has several moving parts. It hosts an areadeveloped and steadily thriving in Montgomery, an up-andcomingarea with major developments in Prince George’s,as well as areas unaffected now but poised for future developmentin Charles, Calvert and Frederick.ContactNAI Hunneman+1 617 457 3400Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage IncomeMedianHousehold Income4,536,2614,669,9752,741,072$91,065$68,969While the Massachusetts economy is still in a downturn, therate of deterioration has slowed considerably. According toMassBenchmarks, economic activity in Massachusettsdeclined at a 1.1% annualized rate in Q3 2009, comparedto 4.2% in February 2009. The state’s education, healthservices, professional services and information sectors haveremained relatively stable despite strong recessionarypressures from the financial services sector.Asking rates for office space continued to fall in 2009, but areleveling off. With vacancy rates climbing to 9.5% in the CBDand 16.5% in the suburbs, there is no shortage of supply,allowing tenants with solid financials to take advantage oftenant-favorable conditions. Significant transactions includeVerizon’s 200,000 SF lease at 185 Franklin Street in DowntownBoston and 3Com Corporation’s 130,000 SF lease at350 Campus Drive in Marlborough.The industrial market continues to trudge along as askingrates have dropped to an average of $6/SF NNN. Vacancyrates have hit their highest level since Q1 2005. Onesignificant transaction is Best Buy’s build-to-suit lease of anew distribution facility at 140 Depot Street in Bellingham,totaling 238,370 SF.Lack of liquidity continued to plague the investment marketin 2009. A majority of investment sales have been limitedto smaller deals that can be locally funded. Themultifamily market remains relatively active; one of thelargest deals in 2009 was the sale of a 90 unit multifamilyportfolio in Arlington for $12 million. Capitalization rateshave increased to 7.5% for multifamily sales, 9% for officeproperty sales and 9.5% for retail property sales.The retail market has also felt the impact of the economicturmoil with lower rental rates and significantly highervacancy in the downtown. Super H-Mart’s 51,000 SF leaseat 3 Old Concord Road in Burlington is one of the few dealsthat was completed in 2009.Although the Boston market continues to slide, the rate ofdecline is showing significant signs of deceleration. If thistrend of decelerating decline continues, we can anticipatethe beginnings of a stabilizing market in 2010, with moresustainable growth trends returning in 2011.Total PopulationMedian Age37Total PopulationMedian Age39Suburban Maryland At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIAL$$$N/AN/AN/A25.5017.0011.00$$$N/AN/AN/A49.0045.7539.00N/AN/AN/A$ 40.36$ 28.45$ 24.20N/AN/AN/A73.0%15.0%12.0%Bulk WarehouseManufacturing$$4.955.00$$14.0011.25$$5.956.4212.5%8.7%High Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power CenterRegional Malls$$$$6.95N/A12.0013.0022.10$$$$16.00N/A55.0044.0040.00$ 11.42N/A$ 25.22$ 24.12$ 23.127.8%N/A7.9%2.4%3.4%DEVELOPMENT LAND Low/Acre High/AcreOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidential$$$$$N/A118,000.00140,000.0040,000.00160,000.0025,000.00$$$$$N/A550,000.00625,000.00240,000.00700,000.0050,000.00Boston At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICEPremium (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAIL$$$$$$$$$45.0035.0025.0032.0025.0016.004.504.757.00$$$$$$$$$55.0052.0035.0042.0035.0025.007.008.0018.00$$$$$$$$$50.0042.5030.0037.0030.0022.505.756.0010.0017.0%9.5%11.3%40.0%16.5%15.0%11.0%13.5%15.0%Downtown$ 20.00 $ 120.00 $ 70.00 15.0%Neighborhood Service CentersCommunity Power CenterRegional Malls$$$10.0010.0015.00$$$17.5017.5080.00$$$13.2513.2547.007.5%7.5%7.5%DEVELOPMENT LAND Low/Acre High/AcreOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-park$$$$100.00225,000.0080,000.0075,000.00$$$$150.00750,000.00225,000.00150,000.00Retail/Commercial Land$ 280,000.00 $ 1,400,000.00Residential$ 100,000.00 $ 500,000.002010 Global Market Report ■ www.naiglobal.com 97

Western (Greater Springfield), MassachusettsDetroit, MichiganContactNAI Samuel D. PlotkinAssociates+1 413 781 8000Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage Income675,599658,190344,760$62,737Greater Springfield is definitely in a recessionary climatewith negative absorption in the office, retail and industrialsectors and vacancy rates that have continually increased inthe Western Massachusetts region. Overall, demand forcommercial space has slowed in the past year as nationalcompanies have scaled back, or stopped expanding altogether,due to a drop in consumer spending.Few retailers are expanding in the area with the exceptionof Lowes, which is constructing a new retail facility in Hadleyand is looking to develop a new retail facility in Holyoke inthe next two years. The Western Massachusetts industrialmarket remains flat, and as a result, there continues to bean oversupply of industrial space as manufacturers continueto restructure and downsize. The industrial market vacancyin the area has increased from approximately 9-12% andhas resulted in the average lease rates decreasing fromapproximately $4/SF to $3.75/SF. We continue to receivea number of inquires for warehousing and distributioncompanies searching for modern, high bay facilities with24’ to 26’ height, which are limited and seem to result innew construction.The weak economy has resulted in declining demand foroffice space in both the suburban and downtown markets.Landlords are trying to combat rising vacancies by loweringrental rates and increasing concessions to retain existingtenants and attract new ones. The Massachusetts DevelopmentFinance Agency recently completed the purchase ofthe former Federal Building located at 1550 Main Streetin downtown Springfield. The building will become the homeof the Springfield School Department and offices forBaystate Health.Constant changes in commercial real estate are hard toadjust to, but where others might see challenges, we seeopportunities. We remain hopeful that we will see a drasticturnaround in 2010. The current environment is a greatopportunity for companies in Western Massachusetts tobegin new businesses and expand locations.ContactNAI Farbman+1 248 353 0500Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage Income4,451,6214,408,6962,226,596$69,120The continual decline of the auto industry weighed heavilyon real estate markets throughout the Metro Detroit area in2009. Sweeping layoffs have not only hampered Detroit’sindustrial market, but the commercial and retail marketscontinue to suffer as well. Medical development drove mostreal estate growth but is beginning to show weakness.The office market has developed a churning trend with manyusers taking advantage of small spreads in rates betweenclasses. Though rate gaps have narrowed, landlords arehesitant to offer tenant improvement incentives as financingand cash remain scarce. New demand has entered themarketplace in the form of renewable energy and filmproduction, yet these industries do not have the critical massto benefit the entire market.Industrial vacancy continues to rise above 20%, primarilydue to the hard hit automotive industry. With minimaltraditional industrial demand, renewable energy firms arebeginning to look at flex space as an attractive option forsolar and wind technologies as these industries are currentlymore R&D focused. Ford Motor is in the process of selling4.7 million SF of plant space to an energy coalition aimed atcreating new solar technologies.Retail power centers have begun to feel the effects of fallingconsumer spending and increasing unemployment withmany anchor and smaller tenants vacating. The largest hitto the retail market came from sweeping closures of CircuitCity locations throughout the Metro Area. Many of thesespaces were replaced with significant investments fromMeijer and LA Fitness, helping to stabilize the slidingdemand for retail space. As vacancy continues to leadnational averages, retail will show weakness throughout2010, specifically for in-line applications.The overall real estate market in Metro Detroit shouldcontinue a decline through 2010 until new industries gaintraction and automotive profits return. With aggressive taxincentive programs in place, Detroit should slowly seedemand return in late 2010, most likely in the form ofenergy research and development.MedianHousehold Income$51,521MedianHousehold Income$64,464Total PopulationMedian Age38Total PopulationMedian Age39Greater Springfield At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power CenterRegional Malls$$$$$$$$$$$$N/A15.0010.0018.5013.0011.002.003.006.008.008.5020.0025.00$$$$$$$$$$$$N/A23.0014.0022.5020.0016.005.255.258.0015.0016.0030.0040.00$$$$$$$$$$$$N/A18.0012.0020.5016.0014.003.003.757.0012.0010.5025.0030.00N/A15.0%20.0%10.0%10.0%15.0%12.0%12.0%6.0%15.0%11.0%10.0%10.0%DEVELOPMENT LAND Low/Acre High/AcreOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-park$$$N/A60,000.0055,000.0050,000.00$$$N/A100,000.0075,000.00200,000.00Retail/Commercial Land$ 100,000.00 $ 1,000,000.00Residential$ 10,000.00 $ 300,000.00Detroit At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power CenterRegional Malls$$$$$$$$$$$22.0020.003.5014.769.009.754.001.002.956.325.00N/AN/A$$$$$$$$$$$33.0030.0023.0039.3645.0025.0035.008.0022.0020.0030.00N/AN/A$$$$$$$$$$$25.8523.0916.5028.2722.5018.974.246.505.6312.3012.74N/AN/A13.0%9.8%21.0%14.9%17.1%20.5%13.0%24.0%19.8%11.2%11.2%N/AN/ADEVELOPMENT LAND Low HighOffice in CBDLand in Office Parks$N/A40,000.00N/A$ 1,041,666.00Land in Industrial ParksOffice/Industrial Land - Non-park$ 191,666.00N/A$ 230,270.00N/ARetail/Commercial LandResidential$ 45,831.00N/A$ 1,024,590.00N/A2010 Global Market Report ■ www.naiglobal.com 98

Grand Rapids, MichiganLansing, MichiganContactNAI West Michigan+1 616 776 0100Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage Income784,632803,240478,570$64,503The region is in an era of transition as it evolves away fromits traditional reliance on the furniture and auto relatedindustries. While most segments in West Michigan experiencedbelow-average growth, if any, the emerging lifescience industry continued to propel transactions through2009. In general, vacancy was up and rent was down.The office sector reflected the ups and downs of an overalltough year. Activity levels improved late in the year astenants were in the market checking available deals andincentives being offered. Tenants are renegotiating ratesand terms rather than dealing with disruption and costof moving. The medical sector continues to grow as theMichigan State medical school and the Van Andel Institute,Phase II, will be completed in 2010, and Grand Rapidsbecomes a regional medical care provider.Demand for industrial property in 2009 has been soft. Manycompanies, unsure of their futures, had difficulty makinglong term real estate decisions. In 2010 we expect to seelittle new development. Rather, existing buildings will beredeveloped and used for growing industries in West Michigansuch as medical, wind and solar energy, componentmanufacturing, food processing and related businesses.The retail sector has also seen increased vacancy and loweraverage rents over the past year. With weak leasing activity,landlords are being forced to be more flexible in negotiations.With tightened financial markets, landlords also had difficultyobtaining financing for tenant improvements. Neighborhoodretail centers experienced declines in rental rates andtenants are finding a challenging business environment.Although many restaurants have been cautious aboutexpansion, the West Michigan market has seen some activityin 2009 by national restaurants such as Sonic, Culvers andGolden Corral.Despite the downturn there is some great news in WestMichigan, which includes the Farmer’s Insurance announcementof 1,600 added jobs and 275,000 SF of new officeconstruction. Many tenants are renegotiating reduced rentsin exchange for extended leases.ContactNAI Mid-MichiganVlahakis Commercial+1 517 487 9222Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage Income460,491469,554265,711$60,427The Lansing area and tri-area is composed of Ingham, Eatonand Clinton Counties. Lansing's population remains steadyat approximately 450,000. In 2009 the market nearlygrinded to a halt but turned around with signs of life in thefourth quarter. As the debt market corrects itself in 2009, weanticipate the number of transactions to increase into 2010.The economic trend continued with below average growthin all segments of the market. Lansing's office market hasapproximately 10 million SF with the largest concentrationsin the CBD and East Lansing. The market had steadilyincreasing vacancy rates nearing 25% while the US vacancyrate averaged 15%. As vacancy rates increased in the market,rental rates continued to drop and landlords were forced tooffer significant incentives to attract tenants. The forecastis that pricing should remain relatively flat or decliningmainly due to the uncertainty of the market.The industrial market has shown significant declines inusers and user interest. The market’s largest owner usersare General Motors and Meijer. Both companies have adirect impact on the industrial market, occupying more than20% of the total available space. The largest concentrationof industrial space can be found in West Lansing (EatonCounty), which comprises nearly 50% of the gross leasableproduct in the market. General Motors and suppliers collectivelyhave brought approximately 2 million SF of Class AIndustrial space to the market. This has shuffled the deck inthe industrial market, which consisted of older obsoletebuildings. Vacancies have increased over the past two yearsincreasing from 18% in 2008 to near 25% in 2009. Theoutlook is fair but we expect absorption to be slow.The retail market consists of nearly 14 million SF, primarilylocated in regional malls and strip centers. Factors thatcontributed to growth in previous years were related toactivity from drugstores and bank branch expansion. We canexpect steady economic trends for 2010.MedianHousehold Income$56,923MedianHousehold Income$56,523Total PopulationMedian Age35Total PopulationMedian Age35West Michigan At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power CenterRegional Malls$$$$$$$$$$$$$15.0014.005.0012.0010.005.002.002.003.007.507.009.0014.00$$$$$$$$$$$$$25.0024.0012.0018.5017.0011.003.503.506.0020.0020.0023.0035.00$$$$$$$$$$$$$20.0019.008.5015.2513.508.002.752.754.5013.7513.5016.0025.0020.0%20.0%25.0%25.0%20.0%20.0%12.0%12.0%12.0%N/A15.0%4.0%2.0%DEVELOPMENT LAND Low/Acre High/AcreOffice in CBD$ 1,100,000.00 $ 5,000,000.00Land in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidential$$$$$100,000.0050,000.0030,000.00100,000.005,000.00$$$$$180,000.00125,000.00130,000.00400,000.0030,000.00Lansing At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power CenterRegional Malls$$$$$$$$$$$$$17.0012.008.0016.0012.006.002.503.004.258.006.5012.0025.00$$$$$$$$$$$$$22.0016.0012.0022.0016.0010.003.504.506.5012.0012.5014.0034.00$$$$$$$$$$$$$19.5014.0010.0018.0014.008.003.003.505.5010.008.7512.5028.0010.0%21.0%30.0%16.0%18.0%28.0%20.0%16.0%15.0%12.0%14.0%12.0%10.0%DEVELOPMENT LAND Low/Acre High/AcreOffice in CBD)Land in Office ParksLand in Industrial Parks)Office/Industrial Land - Non-parkRetail/Commercial LandResidential$$$$$$100,000.0080,000.0020,000.0025,000.00200,000.002,500.00$$$$$$400,000.00120,000.0080,000.0050,000.00400,000.00150,000.002010 Global Market Report ■ www.naiglobal.com 99

Minneapolis/St. Paul, MinnesotaKansas City, MissouriContactNAI Welsh+1 800 897 7701Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage IncomeMedianHousehold IncomeTotal PopulationMedian Age3,263,6893,398,2532,035,357$82,364$69,75537Minneapolis/St. Paul, the “Twin Cities,” are home to 19Fortune 500 companies in industries driven by commerce,finance, healthcare and high-tech companies. The diverse11-county metro area has an annual population growthof 2-3%, a highly educated workforce and low rates ofunemployment, producing a stable environment even duringunpredictable times.Vacancy rose steadily throughout 2009 as rental ratesdecreased slightly in all property types. Office vacancymarket-wide is 14% with the highest vacancy in Class Bspace. Industrial vacancy sits at 10% and retail vacancy isabout 5%. Tenants exercise caution when it comes toleasing or acquiring new space, renewing existing leasesrather than absorbing relocation costs. Landlords are offeringdiscounted rates to tenants renewing 12 to 18 months inadvance to ensure spaces remain filled.Leases of 10,000 SF or less are driving the industrial marketas retail spaces vacated in late 2008 and early 2009 arefilled by a host of new eateries. Major leases this yearincluded a 929,800 SF Target Corporation office renewal,the 300,000 SF Silgan Containers industrial lease and the30,000 SF Home Valu Interiors retail lease.Market activity has grown throughout 2009 and willcontinue in 2010. Movement is due to consolidation anddownsizing, as opposed to actual growth. There is a largeamount of “shadow” space in industrial and office segmentsas companies downsized but did not release unused space.That space needs to be filled before new construction demandwill return. Top construction projects under way in2009 were the Excelsior Crossings Office Park – Bldg. C,2201 W 94th Ave. in Bloomington and BMW of Minnetonka.Transaction volumes are down as are pricing and value.Looking ahead, we'll see more foreclosures, forced salesand increased transactional activity as lenders liquidateassets. The largest sales in 2009 included the 116,000 SFSyngenta Headquarters office building in Hopkins, the335,400 SF industrial building located at 13201 N WilfredLane in Rogers, and the 97,535 SF Hastings Marketplace.ContactNAI Capital RealtyKansas City+1 913 469 4600Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage IncomeMedianHousehold IncomeTotal PopulationMedian Age2,016,6622,095,1041,127,170$68,837$59,54137Kansas City, a bi-state community of over 2,000,000 people,ranks in the top half nationwide for growth during therecession. Bioscience, healthcare and bulk distribution havebeen key performers. The industrial sector remains healthywith 7.25% vacancy and a fairly narrow margin betweenquoted and negotiated lease rates. Coleman’s 1,100,000SF distribution center opened at year-end 2009. BNSF/AllenGroup’s intermodal project in Johnson County, Kansas isproceeding in Edgerton with support from the city, countyand state.The CenterPoint/KC Southern Railway intermodal center atthe former Richards-Gebaur Airport is advancing. Phase Iopened in spring 2008 with $30 million site grading, streets,sewers and utilities. This intermodal serves as an alternativeto the congested Los Angeles port system by shipping fromMexico’s Port of Lazaro Cardena, an increasingly significantgateway for imports from Asia.Kansas City’s office market vacancy increased throughoutmost submarkets in 2009. However, this sector is projectedto begin improving in late 2010. The south Johnson County,Kansas submarket, the metro’s most active, should reboundfirst. Large sublease offerings were a factor in increasedincentives and depressed rates.Healthcare, bioscience research and telecommunicationsimpact demand. Two of the largest transactions occurred atSprint’s headquarters with healthcare companies ApriaHealthcare and Care Centrix opening new operations.Telecommunication companies Sprint and CenturyLink(formerly Embarq) offered large blocks of space new to themarket at Sprint’s Headquarters and CenturyTel’s premisesat Glenwood Place.The Wizards soccer team is flipping its stadium developmentalong with a significant Cerner Corporation office projectfrom Missouri to Kansas. Developers are moving forward atVillage West/Kansas Speedway in Kansas City, Kansas dueto greater economic incentives available in Kansas. Cernerwill create up to 4,000 jobs in this development, the largestjobs influx in Kansas City Kansas in years.The retail sector slowed dramatically in 2009 and improvementis unlikely until at least 2011. Corbin Park in OverlandPark opened with Von Maur, but has since encounterednumerous contractors’ liens and minimal leasing. Lee’sSummit’s Summit Fair, a 395,000 SF lifestyle centeropened, anchored by Macy’s and JC Penney.Minneapolis/St. Paul At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power CenterRegional Malls$$$$$$$$$$$N/A15.0014.00N/A13.002.382.502.503.0010.005.003.507.00$$$$$$$$$$$N/A24.0055.00N/A31.0060.0014.7511.0025.7125.0037.0032.0070.00$$$$$$$$$$$N/A18.4517.97N/A20.7017.795.915.767.2416.8313.8611.3214.73N/A11.0%13.4%N/A9.8%10.0%10.2%7.9%15.5%5.0%7.8%6.3%1.5%DEVELOPMENT LAND Low/Acre High/AcreOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidentialN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AKansas City At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICEPremium (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power CenterRegional Malls$$$$$$$$$$$$N/A18.0014.5028.5020.5015.003.552.654.509.006.206.4512.00$$$$$$$$$$$$N/A23.5020.0028.5028.5021.005.606.4017.8526.0023.5028.2533.50$$$$$$$$$$$$N/A18.6417.1328.5020.8117.703.923.458.0017.8812.8017.0118.24N/A24.0%18.2%100.0%19.1%16.4%5.9%7.3%15.5%7.8%13.2%7.6%8.9%DEVELOPMENT LAND Low HighOffice in CBD (per square foot)Land in Office Parks (per acre)Land in Industrial Parks (per acre)Office/Industrial Land - Non-park (per acre)Retail/Commercial Land (per acre)Residential (per acre)$ 40.00 $ 75.00$ 150,000.00 $ 480,000.00$ 40,000.00 $ 200,000.00$ 35,000.00 $ 175,000.00$ 26,000.00 $ 1,050,000.00N/AN/A2010 Global Market Report ■ www.naiglobal.com 100

St. Louis, MissouriBozeman, MontanaContactNAI DESCO+1 314 994 4444Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage Income2,812,5782,833,7491,497,458$68,844The Greater St. Louis Metropolitan area consists of 16 countiesin Missouri and Illinois and has a population of 2.8 million,making it the 18th largest metropolitan area in the nation.The office market has been slowly declining over the lastyear with slight price erosion and flat demand. Vacancy ratesincreased to 11.8% in 2009 compared to 10.8% at the endof 2008.The office sector is expected to weaken further in2010 when banks increase foreclosures.With one exception, development projects such as theBrown Shoe Company headquarters and Ballpark Villageremain on hold. The Centene Corporation building, a485,250 SF high-rise in Clayton, is the only significantdevelopment expected to deliver in 2010.The industrial market continues to suffer from an excess ofspeculative space resulting in elevated vacancy rates anddecreased rental rates. Vacancy rates increased to 9.0% in2009 compared with 8.1% at the end of 2008. Averagerental rates dropped in 2009 to $4.21/SF compared with$4.35/SF at the end of 2008. No significant projects arecurrently under construction. However, agents are reportingan increase in tenant and buyer inquiries, which could signalan end to the inactivity.The retail sector has been the hardest hit, seeing littleactivity in the last two years. Tenants continue to vacate orseek rent reductions, causing lease rates to decrease andvacancies to increase. There were no new developmentsdelivered in 2009.As an exception to this inactivity, several newcomers are activelyseeking locations. CVS/Pharmacy, Dunkin Donuts, FiveGuys Burgers & Fries and ChickfilA are expected to openmultiple locations in the next year.Nordstrom Rack and VonMaur have also announced plans to enter the market, butthe timing remains uncertain. Retail prospecting is expectedto increase in 2010 with little urgency to close until 2011.ContactNAI Landmark+1 406 556 5005Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage Income103,096136,01940,064$69,488Bozeman is the primary urban center in SouthwesternMontana and is the seat of Gallatin County with a populationof 90,000. Located just 90 miles north of YellowstoneNational Park and only 45 miles north of the Big Sky resortcommunity, Bozeman represents an attractive primary andsecondary home market.Anchored by an economy rich in agriculture, the greaterBozeman market has emerged as a trade region built on thebusiness spin-offs of research successes of Montana StateUniversity, making Bozeman one of the leading smallerurban centers in the nation. Bozeman's economy continuesto be a primary performer in the state with 3.2% annualgrowth. The city enjoys a mature construction industry,significant airline connections, recreational industries,emerging regional medical community and high-tech smallbusiness.A substantial growth in residential development overthe past 10 years stimulated county-wide developmentacross the Valley. While the Southwest Montana economyis somewhat cushioned from the volatility experiencednationally in recent months, there has been a decline indemand for office and retail product that will likely slow theabsorption of a small oversupply. Vacancy is capped at 5%in the office segment and 8% in the retail markets. Marketrent rates remain stable, in the range of $12 to $14/SF/peryear for suburban Class A office space. New retail productoffers opportunity, principally in the form of a new 60,000SF development at South 19th Avenue and Oak Street, andan outdoor lifestyle development at College Street and WestMain. In the industrial sector, warehouse demand hasweakened slightly with the decline in new housing starts.Demand is limited for high-tech flex and R&D space.The historic Downtown Bozeman retail and office marketsremain one of the state's finest. New private investmentdowntown has been stimulated by a $12 million,435-car parking garage. A natural gas explosion in Marchof 2009 destroyed a quarter of a city block that is nowin redevelopment.MedianHousehold Income$55,768MedianHousehold Income$47,771Total PopulationMedian Age38Total PopulationMedian Age33.7St. Louis At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIAL$$$$$N/A17.0010.0028.0021.0015.75$$$$$N/A22.0017.0032.0030.0020.00N/A$ 18.80$ 16.07$ 30.00$ 25.00$ 17.00N/A13.0%14.8%N/A11.6%11.3%Bulk WarehouseManufacturing$$2.802.00$$4.754.75$$3.964.218.7%9.0%High Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power CenterRegional Malls$$$$$7.008.008.0012.0015.00$$$$$12.0022.0025.0028.0060.00$ 10.29$ 12.42$ 16.24$ 20.12$ 48.7914.8%6.1%13.0%4.9%7.2%DEVELOPMENT LAND Low/Acre High/AcreOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-park$$$N/A315,000.00155,000.0085,000.00$$$N/A520,000.00260,000.00180,000.00Retail/Commercial Land$ 130,000.00 $ 1,200,000.00Residential$ 55,000.00 $ 200,000.00Bozeman At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power CenterRegional Malls$$$$$$$$$$$$$12.0011.007.0012.0010.009.004.005.0010.0013.0012.0016.0018.00$$$$$$$$$$$$$14.0013.0010.0014.0012.0011.006.006.2512.0016.0014.0025.0025.00$$$$$$$$$$$$$13.0012.008.5013.0011.0010.005.005.5011.0014.5013.0020.5021.502.0%5.0%5.0%10.0%15.0%18.0%12.0%12.0%3.0%5.0%5.0%8.0%3.0%DEVELOPMENT LAND Low/Acre High/AcreOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidential$$$$$$850,000.00229,000.0098,000.00120,000.00440,000.0015,000.00$$$$$$1200,000.00350,000.00175,000.00220,000.00650,000.0030,000.002010 Global Market Report ■ www.naiglobal.com 101

Missoula, MontanaLincoln, NebraskaContactNAI Crowley Moore+1 406 721 1111Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage IncomeMedianHousehold Income112,108128,27863,510$62,415$43,433Missoula, also known as the “Garden City,” is Montana’ssecond largest city composed of approximately 67,165residents. Missoula is western Montana's center of education,medicine, business, retail shopping, entertainment, cultureand recreation. Traditionally timber and mining were theprimary industries throughout the state. However, Missoula’seconomy has diversified with growth in tourism, retail,manufacturing, trucking and customer services.Residential home sales have slowed significantly, with mostsales occurring in the starter home sector. In MissoulaCounty, 994 homes sold in 2008 with the median homeprice averaging $215,000. First Interstate Bank constructeda new six-story, 86,844 SF office building that will house itsdowntown branch and administrative offices along withother businesses. Another six-story office building with48,000 SF owned by the Garling, Lon and Robinson lawfirm, is under construction and will be completed in 2010.The Old Mill Site (former Brownfield) located across the ClarkFork River near Missoula's Downtown, is expected to receivesubdivision approval in 2010. The site will be developed withsingle-family residential, multifamily residential, retail andoffice space. Office vacancy estimates are 6% and retailestimates are 8% for 2009.Missoula’s Trade Area population has steadied with TertiaryTrade Areas in 2009 estimated at over 360,000. Retailexpansion on North Reserve Street has stalled, with one bigbox location now vacant. Restaurant expansion continues withonly the addition of Five Guys Burgers on East Broadway.A sewer main extension has been constructed along Highway10 to the Wye (airport area), allowing for the relocationof the Missoula National Guard Armory. The Amory isscheduled to be completed in 2010.Development in multifamily units has slowed since the peakin 2007, with average apartment rental rates at $663per month. Occupancy levels are good, averaging betterthan 95%.ContactNAI FMA Realty+1 402 441 5800Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage IncomeMedianHousehold Income306,162338,823201,481$62,576$54,697Lincoln is the capital of Nebraska and represents its secondlargest city. The local economy remains healthier than mostUS markets due to the presence of state government andthe University of Nebraska. However, the office, retail andindustrial sectors have not been entirely impervious to thecurrent economic events as new activity has diminished.The city delayed its public financing vote to spring 2010 ona new arena project west of the CBD.Lincoln’s office vacancy rates edged higher across themarket. Asking lease rates softened and landlords offeredmore concessions to serious tenants. New space waspredominantly build-to-suit with minimal speculative space,bringing the total office inventory to over 12 million SF.The CBD continues to attract investment in adaptive reuse ofolder buildings primarily into residential condominiums andapartments. Lincoln Flats, a $6 million mixed-use project,created retail, office and 24 residential units downtown.The retail market remained challenging, as vacancies roseacross most submarkets and types. Retailers who predictedgrowth have since put expansion on hold and several newdevelopments have stalled due to lack of national retailerresponse. However, tenants expanding in the current economyare finding greater choices and lower rents. Successstories in 2009 include Staples, which broke ground on itsfirst store in Lincoln. Several new restaurants are looking toenter the market, and CVS, Jimmy John’s, Verizon and SnapFitness continue to expand their presence. The hospitalitysector is encouraging with several new hotel projects underconstruction or planned.Lincoln’s industrial market saw an increase in sales andleasing activity in 2009 as companies took advantage oflower rental rates and vacancies, but it was not enough tostop the upward trend of overall vacancy, which increasedto 13.5%. The most notable industrial project was a 72,000SF addition to a cold storage facility.The 2010 forecast suggests a continuation of a slowermarket, but Lincoln’s economy should fare better than thenational economy. Higher quality of life and a lower cost ofliving index make Lincoln an attractive place to invest and dobusiness.Total PopulationMedian Age35Total PopulationMedian Age33Missoula At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIAL$$$$$$25.0015.0010.0017.0014.0011.00$$$$$$32.0019.0014.0022.0018.0013.00$ 29.00$ 17.00$ 11.00$ 18.00$ 15.00$ 12.0030.0%15.0%10.0%5.0%7.0%7.0%Bulk WarehouseManufacturingHigh Tech/R&DRETAIL$$3.002.00N/A$$7.008.00N/A$$5.004.00N/A4.0%25.0%N/ADowntownNeighborhood Service CentersCommunity Power CenterRegional Malls$$$$10.0012.0010.0015.00$$$$18.0019.0018.0020.00$ 14.00$ 16.00$ 16.00$ 16.003.0%4.0%5.0%2.0%DEVELOPMENT LAND Low/Acre High/AcreOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidential$$$$$$50.008.005.004.0010.002.00$$$$$$70.0012.008.0010.0030.004.00Lincoln At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power CenterRegional Malls$$$$$$$$$$$$N/A14.7510.0012.5017.509.002.002.003.504.005.006.0020.00$$$$$$$$$$$$N/A20.0023.0025.0024.0024.008.006.0010.5018.0022.0025.0085.00$$$$$$$$$$$$N/A16.7516.5019.2520.0015.504.253.506.7511.7514.7514.7532.00N/A11.5%10.4%33.1%5.8%9.7%6.2%8.6%11.0%12.6%9.3%9.9%17.5%DEVELOPMENT LAND Low/Acre High/AcreOffice in CBD$ 25.00 $ 45.00Land in Office Parks$ 130,000.00 $ 1,000,000.00Land in Industrial ParksOffice/Industrial Land - Non-park$$75,000.0045,000.00$$200,000.00350,000.00Retail/Commercial Land$ 196,000.00 $ 1,200,000.00Residential$ 25,000.00 $ 65,000.002010 Global Market Report ■ www.naiglobal.com 102

Omaha, NebraskaLas Vegas, NevadaContactNAI NP Dodge+1 402 255 6060Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage IncomeMedianHousehold Income838,875858,579415,400$67,576$59,130Although Omaha has remained somewhat insulated fromthe economic crisis, the impact is still being felt. Nowhere isthis more evident than commercial real estate. In the pastyear, Omaha has seen increased vacancy rates acrossthe board, historic rental rate reductions, longer rentalabatement periods and increased leasehold improvementallowances. But it isn't all doom and gloom, and somesectors still hold the promise of stability.Although overall rental rates are up, vacancy rates are down,and there’s a lot to get excited about in Omaha. Severalredevelopment construction projects are taking place,including Aksarban Village, a mixed-use urban lifestylesetting near the University of Nebraska at Omaha. Thedevelopment includes approximately 750,000 SF of officespace, 250,000 SF of retail, a 139-room Courtyard byMarriott and 500 housing units including multifamily andcondos. Another exciting development is Midtown Crossing,a $250 million mixed-use urban development. MidtownCrossing will feature a pedestrian-oriented retail and entertainmentenvironment composed of seven buildings andapproximately 200,000 SF of space.In the industrial market, rental rates have risen but overallvacancy rates are down. In 2007, the average vacancy ratewas 8.3% compared to the current 6.3%. In 2007, theaverage rental rate for industrial property was $4.69; thisyear it is $4.80.The Omaha office market can best be described as stagnant.Rental rates have risen steadily over the past three years,from $13.55/SF in 2007 to $16/SF at the end of theQ3 2009. However, overall vacancies rates are down. Thesuburban market has experienced increased pressure tolower rates, which has put pressure on every other sector.With additional space anticipated to be on the market in2010, an increase in vacancy rates is expected.Omaha has a cost of living that’s 10-13 % below thenational average, a consistently low crime rate and theentertainment and cultural amenities of a city twice its size.In summary, it’s an excellent place to live, work and play.ContactNAI Las Vegas+1 702 796 8888Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage IncomeMedianHousehold Income1,949,3042,228,1221,087,815$73,925$60,412Southern Nevada has been one of the most robust economiesof its size in the country. Broader market conditions haveshifted the growth-driven environment in and around LasVegas, including its core tourism industry, but the fundamentalstructure remains the same. Declines in end-userand investor demand over the past two years have createdchallenges within the commercial real estate sector whileproviding opportunity for strategic acquisitions and thosewith a vision for the future.During 2009, the commercial office market posted avacancy rate in excess of 22%, representing an all-time highas annual negative absorption was reported for the first timein history. With inventory reaching 50 million SF andover 11 million SF of vacant space, the market experienceddownward pressure on pricing with average asking rents.The number of projects actively moving forward continuedto shrink dramatically, while several stalled constructionprojects signal corrections are under way. The retail marketexperienced a similar market shift as a number of anchortenants vacated spaces. The move-outs were a direct resultof corporate financial issues for regional and national chainssuch as Circuit City and Linens N Things. Local fundamentalsalso impacted retailers. Total inventory reached 52million SF, while vacancies surged to 10%, a figure that hoveredaround 4% during the past decade.Expansions going forward will be limited to pre-leased,anchor spaces by known brands. Niche opportunities haveprevailed for Hispanic grocers and discount retailers, a trendrequired to fill existing product. Industrial product also experiencedescalating vacancies that reached beyond 12% astotal inventory exceeded 103 million SF. Vacancies aresignificantly higher than the 10-year historical average of8%. Speculative development in the sector remains limitedwhile net absorption remained negative throughout the year.In December 2009, MGM Mirage’s $8.5 billion City Centerdebuts with 18.5 million SF of resort and residential developmentalong the famous Las Vegas Strip. The property isexpected to act as a catalyst for increased visitation, whichshould have rippling effects throughout the economy.Total PopulationMedian Age35Total PopulationMedian Age36Omaha At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIAL$$$$N/A9.0011.17N/A9.008.37$$$$N/A26.5418.81N/A28.5025.46N/A$ 19.07$ 12.07N/A$ 19.85$ 15.55N/A8.2%6.9%N/A11.1%12.1%Bulk WarehouseManufacturingHigh Tech/R&DRETAIL$$3.36N/A5.23$$6.67N/A8.75$$4.52N/A6.405.7%N/A10.7%DowntownNeighborhood Service CentersCommunity Power Center$$$3.106.0012.14$$$21.4115.6518.50$ 11.96$ 12.00$ 15.918.5%12.9%4.4%Regional Malls$ 6.00 $ 27.09 $ 15.46 7.4%DEVELOPMENT LAND Low/Acre High/AcreOffice in CBD$ 300,000.00 $ 1,300,000.00Land in Office Parks$ 200,000.00 $ 750,000.00Land in Industrial Parks$ 130,000.00 $ 1,000,000.00Office/Industrial Land - Non-parkRetail/Commercial LandResidential$$$80,000.00350,000.0015,000.00$$$430,000.00785,000.0050,000.00Las Vegas At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power CenterRegional Malls$$$$$$$$$N/A24.0021.00N/A30.0021.004.566.006.00N/A18.0018.00N/A$$$$$$$$$N/A39.0030.00N/A45.0030.0010.2011.4018.00N/A30.0027.00N/A$$$$$$$$$N/A27.6025.20N/A27.0024.007.328.4512.00N/A23.5222.96N/AN/A5.0%17.1%N/A29.5%23.2%11.7%12.2%18.0%N/A11.9%11.4%N/ADEVELOPMENT LAND Low/Acre High/AcreOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidential$$$$$$450,000.00300,000.00100,000.0085,000.00350,000.00100,000.00$$$$$$825,000.00700,000.00500,000.00350,000.00850,000.00450,000.002010 Global Market Report ■ www.naiglobal.com 103

Reno, NevadaManchester, New HampshireContactNAI Alliance+1 775 336 4600Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage IncomeMedianHousehold Income428,342473,903247,075$76,319$61,047Traditional economic drivers in Reno are tourism and gamingwith warehousing/distribution the leading non-gamingrelated industry. Gaming revenues declined more than 23%,the visitor count dropped by a similar amount and industrialactivity was less than 60% of the average for the previouseight years. Construction employment dropped precipitously,contributing significantly to an unemployment rate of morethan 13.2%.The office market experienced a record high vacancy rateresulting in landlords making deals well below alreadyreduced asking rates, with free rent the concession ofchoice. Less than 10,000 SF of new construction occurredin 2009, with virtually no speculative office buildingsplanned for 2010 as weak demand is expected to continue.Demand for industrial space was down for the third consecutiveyear and the vacancy rate reached an all-time high ofmore than 15%. There was virtually no speculative developmentduring 2009. Market occupancy receded by more than3% (almost 2 million SF) and effective rents dropped15-25%, with a concomitant decrease in property values.The retail market saw an overall vacancy rate of 15.6%, witha number of local and national tenants vacating their spaces.Some projects in the pipeline are continuing, most notablythe 130,000 SF phase two of the Legends at Sparks Marina.Despite market conditions, Wal-Mart is under constructionwith one store and is in the process of acquiring another site.Investment sales have been impacted by lower occupanciesand lower rents in all sectors. Most investors have increasedyield requirements between 9-11% to compensate for theserisks. At the same time, the complete collapse of traditionalsources of debt resulted in a “perfect storm,” decreasingvalues almost 45% since their peak in 2006.The decline in demand for commercial space in the localmarket caused by the global recession appears to have moderated.Location, climate and lifestyle, attractive inducementsto the area that led to inflated values before the recession,will be the engines that power the market back into normalcyas the economy recovers.ContactNAI Norwood Group+1 603 668 7000Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage IncomeMedianHousehold Income400,362395,281214,311$81,148$67,787The Manchester, New Hampshire, market is often classifiedas a suburb of the Boston real estate market, but a distinctionshould be drawn. As one draws concentric highway circlesaround Boston, the “128 Belt,” then the “495 Belt,” theoccupancy levels and rental rates for most asset classeshave been sinking. However, just outside the last of thebeltways is the New Hampshire border and indicators seemto improve.The first main indicator is that New Hampshire’s unemployment,hovering a shade under 7%, is nearly two pointsbetter than the national average. New Hampshire’s lack ofincome and sales taxes keep it a fairly stable force in theregion, being one of the few states in the New England areato boast positive net migration five out of the last six years.However, as the New Hampshire legislature prepares itsbiennium budgets, job losses in the public sector andincreased taxes are sure to be on the docket, which couldhurt the 2010 outlook. The public sector will contributeto real estate growth in the Manchester area, as FederalStimulus money has been used for the completion of the“Airport Access Road.” This links the Everett Turnpike, Route3 and the Manchester Boston Regional Airport. The road willimprove commuting, shipping and open access to land onthe airport side of the Merrimack River to future industrialdevelopment.On the Bedford and Merrimack side, projects are in place todevelop additional retail due to the increased traffic. Furtherup the river in the downtown area, the Elliot at River’s Edgewill make its debut in 2010. A 200,000 SF medical facilitywill be unveiled on a site of an old, environmentally dirty industrialbuilding.Manchester and her surrounding communities are wellpoised for 2010. Though the word of 2009 may have been“apprehension,” the forecast for next year seems to bemuch more positive, based on the improvements toinfrastructure and stability in population.Total PopulationMedian Age38Total PopulationMedian Age40Reno At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)$$$27.0020.4016.20N/A$$$27.0027.0022.20N/A$ 27.00$ 22.20$ 17.40N/A100.0%17.5%25.9%N/AClass A (Prime)$ 16.80 $ 23.40 $ 1.80 22.4%Class B (Secondary)INDUSTRIAL$ 12.00 $ 19.20 $ 18.00 15.5%Bulk WarehouseManufacturingHigh Tech/R&DRETAIL$$$3.003.107.80$$$3.964.0010.80$$$3.363.759.0014.9%6.2%2.0%DowntownNeighborhood Service CentersCommunity Power CenterRegional Malls$$$$12.0012.0018.0024.00$$$$30.0030.0030.0050.00$ 22.00$ 20.00$ 22.00$ 36.00N/A15.6%11.0%18.2%DEVELOPMENT LAND Low/Acre High/AcreOffice in CBD$ 20.00 $ 25.00Land in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidential$$$$348,000.00109,000.00N/A174,000.0025,000.00$$$$435,000.00174,000.00N/A261,000.0040,000.00Manchester At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power CenterRegional Malls$$$$$$$$$NA16.0010.00NA16.508.003.754.007.0010.0010.00N/AN/A$$$$$$$$$NA20.0014.00NA19.0013.005.506.0010.0020.0025.00N/AN/A$$$$$$$$$NA17.0011.00NA17.0010.004.755.008.0013.0017.00N/AN/ANA20.0%15.0%NA15.0%10.0%5.0%5.0%5.0%N/AN/AN/AN/ADEVELOPMENT LAND Low/Acre High/AcreOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidential$$$N/AN/AN/A75,000.00125,000.0075,000.00$$$N/AN/AN/A100,000.00200,000.00200,000.002010 Global Market Report ■ www.naiglobal.com 104

Portsmouth, New HampshireAtlantic County, New JerseyContactNAI Norwood Group+1 603 431 3001Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage Income20,88020,58712,298$76,211The New Hampshire seacoast is the axis of the GoldenTriangle that runs from Portsmouth along the Massachusettsboarder up to Manchester and back to Portsmouth.Seacoast was the ranked the #1 place to start a business inNew Hampshire by Business Week. The area has apopulation of 433,244. The city of Portsmouth was namedone of the top 10 places to live in the US by Money Magazinefive out of the last 10 years.The seacoast office market has experienced a change invacancy. The Pease International Tradeport vacancy rate hasdropped from 18% to 12%. This is attributed to tenantsrelocating from the demolished Parade Mall and the expansionof existing tenancies in the Tradeport.Statistically, New Hampshire entered Q4 2009 in a betterposition than the rest of New England. The recently reportedNew Hampshire unemployment rate at 6.9% was threepoints under the national rate of 9.7%. The loss rate in oneof the largest sectors of the seacoast area is the hospitalityindustry with 1,300 jobs lost and rising. The $610 millionStimulus Package for 2009 awarded to New Hampshire willprovide stability and an increase in jobs. Areas to be affectedinclude but are not limited to highway/bridge infrastructure,weatherization/energy programs, learning institutions anddrinking/waste water infrastructures.Across the harbor from Portsmouth is the Portsmouth NavalShipyard. This facility has a payroll of $361.1 million,accounts for $73 million in purchases in the New Englandarea and contracts for $67 million in facility services. Theplanned second phase of the PortWalk project in downtownPortsmouth has broken ground for 12,000 SF of retail anda 120-room extended-stay hotel. Two phases will follow,bringing roughly 160,000 SF of office, 40,000 SF of retailand 20,000 SF of restaurant space, as well as an undergroundparking garage.The New Hampshire seacoast, with its diverse economy andunique resources, will not only endure the current economicsetback, but will continue to grow as a community andremain in the forefront of economic stabilization.ContactNAI Mertz+1 856 234 9600Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage Income268,530263,127191,412$71,988Atlantic County’s economy is dominated by both the tourismand casino gambling industries. Efforts are under way todiversify the county’s economy with the development of anaviation research and technology park; however, the bulkof real estate investment remains targeted at hotels, entertainment,housing (to the casino industry) and recreation.In 2009, casino gambling volume declined an average of14% for the county’s 11 casinos. The bright spot of theregion continues to be the Borgata Casino, which openedin 2003. Borgata was the area’s first $1 billion-plus casino.This past year, gambling at Borgata was down a modest 5%.Entering 2008, there were several planned mega-casinoson the drawing board, however, due to the recession onlyRevel Entertainment broke ground and is currently underconstruction.Industrial real estate in the region continues to suffer froma lack of deal velocity. Vacancy rates increased to approximately20% from 18% in 2008. Negative absorption was inexcess of 100,000 SF with a product base of approximately5 million SF. The office market is relatively small for theregion, with just under 3 million SF. The office vacancyrate is approximately 13%, which represents an increaseof about 2% from 2008. Leasing activity remains modest,mostly renewal activity and again, locally driven and casinorelated.The retail sector is the most vibrant commercial real estatesector, owing to the casinos and tourism/summer shoreactivity. Retail vacancy is approximately 7%, representingan increase from 5.5% in 2008. The total retail market isestimated to be in excess of 9 million SF.Despite the recession and declining casino revenue, developershave not given up on the region. Casino Walks retailcenter began its third phase of development with completionscheduled for summer 2010. The Atlantic City community ishoping the future mega-casinos will transform their regionto an over-night destination location similar to Las Vegas.MedianHousehold Income$56,451MedianHousehold Income$55,623Total PopulationMedian Age44.1Total PopulationMedian Age39Portsmouth At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power CenterRegional Malls$$$$$$N/A17.008.00N/A8.00N/AN/A4.50N/A22.008.00N/AN/A$$$$$$N/A23.0015.00N/A16.00N/AN/A8.00N/A30.0016.00N/AN/A$$$$$$N/A19.0010.00N/A12.00N/AN/A5.00N/A28.0012.00N/AN/AN/A10.0%15.0%N/AN/AN/AN/A15.0%N/A5.0%15.0%N/AN/ADEVELOPMENT LAND Low/Acre High/AcreOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidentialN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AAtlantic County At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIAL$$$$N/A18.0012.00N/A14.009.00$$$$N/A20.0017.00N/A18.0015.00N/A$ 19.00$ 14.50N/A$ 16.00$ 12.00N/A12.0%18.0%N/A15.0%18.0%Bulk WarehouseManufacturingHigh Tech/R&DRETAIL$$$2.251.506.00$$$5.004.0012.00$$$3.502.958.0020.0%20.0%20.0%Downtown$ 25.00 $ 45.00 $ 32.00 8.0%Neighborhood Service Centers $ 8.00 $ 12.00 $ 9.00 11.0%Community Power CenterRegional Malls$$15.0020.00$$25.0040.00$ 18.50$ 27.505.00%7.0%DEVELOPMENT LAND Low/Acre High/AcreOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidential$$$$$N/A65,000.0020,000.0050,000.0065,000.0010,000.00$$$$$N/A200,000.00100,000.00150,000.00400,000.0055,000.002010 Global Market Report ■ www.naiglobal.com 105

Middlesex/Somerset Counties, New JerseyNorthern New JerseyContactNAI DiLeo-Bram & Co.+1 732 985 3000Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage IncomeMedianHousehold Income1,114,0101,117,820550,366$103,225$83,279Middlesex and Somerset Counties are located in the heartof the central New Jersey commercial real estate market,located 40 minutes from downtown New York City and 60minutes from Philadelphia. Direct access to Newark LibertyInternational Airport, the Ports of Elizabeth and Newark,access to a public mass transit system and an excellent roadsystem attract companies wanting to take advantage of itsgeographical location and the abundant supply of a skilledand educated labor force.Office sales and leasing activity is at a near standstill asbuyers/tenants and sellers/landlords remain cautious.Renewal activity is more prevalent as companies are optingto stay in place rather than incur the costs of moving andlandlords are willing to make concessions to stabilize theirassets. The office vacancy rate has increased to 20.7% asmore sublease space continues to come onto the market.The industrial market in central New Jersey remains highlychallenged. Central New Jersey’s strength is as a regionaldistribution hub for larger big box industrial companiesservicing the retail sector. The downturn in the economy hasnegatively affected the supply provided by the optimisticspeculative construction that took place in the past 10 years.The submarket located at exit 8A on the NJ Turnpike hasbeen especially hit hard as the vacancy rate has hit almost20% and rents have dropped 30-35% to rates not seen in20 years.The retail market in central New Jersey remains relativelystable. A handful of national retailers have gone bankruptand many retailers continue to struggle. The vacancy ratehas risen from 3% to 9% in the region. Rents have stabilizedor dropped and new construction is non-existent. Thebiggest hurdle will be who will replace the big box retailersthat have exited.Tenants will continue to take advantage of the current marketconditions as investors wait on the sidelines for opportunitiesto emerge on mortgages coming due for properties thatwere overleveraged at reduced capitalization rates. Oncethe market stabilizes and space is absorbed the region willagain be primed for growth.ContactNAI James E. Hanson+1 201 488 5800Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage IncomeMedianHousehold Income3,956,44813,760,8491,996,289$103,225$83,279The market was stagnant in Q4 of 2008 into the first half of2009. Whether people focused on internal issues or waitingfor the next problem to arise, the end result was that theydelayed making decisions. This began to change midwaythrough the year. There is now more real activity and dealmaking taking place. Most of the transactions beingcompleted are relatively short term and ones where thelandlords and sellers are very aggressive.In the office market, vacancy factors are only slightly upover a year ago. However, asking rents have decreased andlandlords are very aggressive in offering free rent andextensive work letters. Subletting is also having a majorimpact on the market. The suburban markets have sufferedmore than the submarkets close to New York City.The vacancy factor in the industrial sector is approachinga 10-year high. However, there have been transactions,especially in the second half of the year. Asking rateshave decreased approximately 20% year to date and dealsare being made off of those numbers. Landlords aremaking shorter term deals more frequently than in thepast, and tenants have also been reluctant to make longterm commitments.The retail sector has experienced the most difficult marketin the past 20 years. Vacancies in major corridors that wouldnormally be leased right away are remaining vacant forextended periods of time. The sector is suffering from a lackof activity as opposed to the other sectors where there aredeals to be made at a price.Investment sales have been nearly nonexistent. There isa growing gap in value between what owners feel theirproperties are worth and what buyers are willing to pay.Additionally, there are fewer buyers in a position to purchaseproperties, and many of them are pursuing debt purchasesversus physical real estate.The first half of 2010 should be a continuation of the secondhalf of 2009. Leasing activity should steadily improve ascompanies begin to feel more confident in the economy,with any area of concern remaining in the debt and capitalarenas.Total PopulationMedian Age38.6Total PopulationMedian Age38.6Middlesex/Somerset Counties At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIAL$$$N/AN/AN/A24.0018.0014.00$$$N/AN/AN/A29.0024.0018.00N/AN/AN/A$ 25.00$ 20.00$ 15.00N/AN/AN/A30.0%21.00%20.0%Bulk WarehouseManufacturingHigh Tech/R&DRETAIL$$$2.502.506.00$$$4.755.0012.00$$$3.503.508.0014.0%6.0%7.0%DowntownNeighborhood Service CentersCommunity Power CenterRegional Malls$$$$14.0012.0016.0030.00$$$$25.0022.0025.0060.00$ 20.00$ 17.00$ 22.00$ 50.008.0%10.0%10.0%7.0%DEVELOPMENT LAND Low/Acre High/AcreOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidential$$$$$N/A200,000.00150,000.00150,000.00150,000.0025,000.00$$$$$N/A350,000.00250,000.00250,000.00800,000.00150,000.00Northern New Jersey At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIAL$$$$N/A22.0013.00N/A17.0013.00$$$$N/A40.5027.00N/A50.5025.00N/A$ 28.00$ 25.00N/A$ 28.00$ 22.00N/A12.0%20.0%N/A20.0%16.0%Bulk WarehouseManufacturingHigh Tech/R&DRETAIL$$$2.702.256.50$$$9.506.5016.00$$$6.105.759.3012.0%11.0%11.0%DowntownNeighborhood Service CentersCommunity Power CenterRegional Malls$$$$11.0013.0012.5030.00$$$$45.0027.0026.0060.00$ 26.00$ 19.50$ 20.00$ 50.009.7%7.7%5.1%3.8%DEVELOPMENT LAND Low/Acre High/AcreOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-park$$$N/A250,000.00125,000.00100,000.00$$$N/A600,000.00500,000.00500,000.00Retail/Commercial LandResidential$$550,000.00200,000.00$ 2,000,000.00$ 1,000,000.002010 Global Market Report ■ www.naiglobal.com 106

Ocean/Monmouth Counties (“Shore Market”), New JerseyPrinceton/Mercer County, New JerseyContactNAI Atlantic Coast Realty+1 732 736 1300Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage IncomeMedianHousehold IncomeTotal PopulationMedian Age1,227,4051,276,214537,330$90,007$69,54540.9The "Shore" region’s key employment sector growth wasdriven by healthcare and senior services. New constructioncontinues to falter, and tourism was better than expected, butstill weak by historical standards. The recent consolidation ofthe Superbase (Lakehurst Naval, Maguire AFB and Fort DixArmy) has not offset the economic losses anticipated at FortMonmouth. The Fort Monmouth exodus began slowly, butis gaining momentum, driving up vacancies and landlordanxiety.The fundamental problems in greater NJ (governmentspending, high taxes, high cost of living and weak employmentgrowth) have a particular impact on the shore marketbecause of its heavy reliance on tourism. Core real estatedemand drivers (job and housing growth) were weak in2009 and are projected to remain soft well into 2010.Anemic job growth continues to plague the office sector,although leasing activity picked up in the latter part of 2009as tenants scrambled to secure better lease terms. Buy-sideopportunities remain well below replacement cost so majornew construction is not anticipated in 2010.Re-trading historical rents was the 2009 story for industrialassets as producers and warehousing struggled to containcosts. Industrial rents are flat to declining, but overallvacancy is increasing, pushing values downward.Retail landlords won't know the outcome of 2009 until afterthe Christmas season, but if the "age of frugality" holds,conventional wisdom is for increasing vacancies into Q12010. All asset classes saw 100 to 150 basis pointincreases in capitalization rates as underwriting (LTV, etc.) oncommercial assets has become overly conservative.The land market is stagnant but 2010 should provide strongbuy-side opportunities on land inventory for long-termdevelopment as the economy struggles back. Owner-userbuyers should be examining build-to-suit options now asland prices are historically cheap and construction activity isat an all-time low.The long-term prognosis for the Shore Region remainsstrong. The Ocean-Monmouth region has the fastest growingpopulation and income in NJ. Population growth will likelyslow in the coming decade as land inventory becomesterminal. However, this bodes well for future value spikesfor those invested at the 2010 bottom.ContactNAI FennellyAssociates, Inc.+1 609 520 0061Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage IncomeMedianHousehold IncomeTotal PopulationMedian Age361,073350,099180,232$99,847$73,33937.7The Greater Princeton area joined the recession in 2009 witha pull back in financial companies such as Blackrock andMerrill Lynch. The pharmaceutical companies experiencedgrowth after several years of languishing and readjustingtheir models to become more streamlined. Overall, the retailand industrial sectors have been negatively affected asconsumer demand retracted, causing a lack of demand anda lowering of rents.A drop-off in demand from service/legal business loweredoverall demand by 10% in the first half of the year. Notabletransactions were the Niksun $20/SF rental at Nassau Parkfor 30,000 SF and Stealth Microwave for 20,000 SF inEwing Technology. Johnson & Johnson leased a total of125,000 SF at 23 Orchard Road. Otsuka Pharmaceuticalsrecently leased 67,000 SF at One University Square inPrinceton. Technology expansion in Princeton was up in thefirst half of the year to 37% compared to 2008 figures.Medical sector growth came back from a slow 2008 with11% growth so far this year compared to 4% last year. GDPwent into negative territory in Q3 2008, dropping further tonegative 6% in Q1 2009 and now remains at negative 1%.Industrial rents have plummeted in the areas surroundingexits 8A and 7A of the New Jersey Turnpike, representing a30% reduction in rental values. Comparables in the areainclude: Schwartz Paper at Exit 7A with 150,000 SF at$3.25/SF starting rents and total rent averaging $4/SF over15 years; One Crossroads, a 20,000 SF single-story officewarehouse in Hamilton, at $1.3 million or $68/SF. On theother side of Hamilton in an older industrial area, recentforeclosure activity has taken place with a 60,000 SF, 14’clear building at 2425 East State Street recently selling for$21.66/SF.As the commercial real estate market begins to rebound,this will create opportunities for companies to positionthemselves in markets that were previously too expensive,such as the opening of the new 25,000 SF Home Furnishingsstore in Nassau Park. Companies, as well as investors, willuse this time to understand the strategic benefits and reapthe rewards that will be available in the market.Ocean/Monmouth Counties (“Shore Market”) At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIAL$$$$$$31.0031.0020.0030.0021.0019.00$$$$$$35.0035.0028.0035.0032.0024.00$ 34.00$ 34.00$ 26.00$ 33.50$ 27.50$ 22.5011.0%11.0%14.0%11.0%11.0%14.0%Bulk WarehouseManufacturingHigh Tech/R&DRETAIL$$$3.003.505.00$$$6.007.009.00$$$5.254.756.2511.0%11.0%12.0%DowntownNeighborhood Service CentersCommunity Power Center$$$22.0020.0020.00$$$30.0027.0026.00$ 24.50$ 22.50$ 21.5012.0%7.0%8.0%Regional Malls$ 45.00 $ 100.00 $ 65.00 7.0%DEVELOPMENT LAND Low/Acre High/AcreOffice in CBD$ 20.00 $ 40.00Land in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidential$$$$$150,000.0075,000.00125,000.00200,000.0075,000.00$$$$$350,000.00300,000.00450,000.00500,000.00250,000.00Princeton/Mercer County At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIAL$$$$$$35.0022.0017.0031.0023.0018.00$$$$$$38.0038.0023.0033.0029.0024.00$ 26.00$ 26.00$ 21.00$ 32.00$ 26.00$ 22.003.0%6.0%5.0%17.0%20.0%24.0%Bulk WarehouseManufacturingHigh Tech/R&DRETAIL$$$2.001.004.00$$$4.503.006.00$$$3.002.005.0015.0%14.0%16.0%DowntownNeighborhood Service CentersCommunity Power CenterRegional Malls$$$$20.0012.0010.0018.00$$$$40.0018.0016.0039.00$ 30.00$ 15.00$ 13.00$ 28.0010.0%14.0%14.0%12.0%DEVELOPMENT LAND Low/Acre High/AcreOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidential$$$$$400,000.00600,000.00200,000.0080,000.00200,000.00N/A$$$$$600,000.00800,000.00275,000.00150,000.00800,000.00N/A2010 Global Market Report ■ www.naiglobal.com 107

Southern New JerseyAlbuquerque, New MexicoContactNAI Mertz+1 856 234 9600Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage Income1,304,5591,285,132634,709$81,769Southern New Jersey continues to be an advantageouslocation for many businesses because it is contiguous to thePhiladelphia area. It is also at the center of the NortheastCorridor with excellent road networks, rail capabilities andport facilities, making it ideal for almost any logistics andsupply chain requirement.The Southern New Jersey industrial market is faring betterthan the office or retail sectors. Industrial vacancy ratestrended up 1.5% from 2008. Rental rates have droppedapproximately 10%. Sales prices have taken the brunt ofthe downturn running at 15-25% below their peak values.Deals of note completed in 2009 included Kimberly Clark’s600,000 SF distribution center in the LogistiCenter and GoyaFoods 250,000 SF build-to-suit in Gateway Business Park.Office leasing in 2009 was anchored by only a handful ofmedium-size deals including Coner Strong’s lease of 47,121SF and the Parente Randolph lease of 29,609 SF. However,more characteristic of the market was leasing activitydominated by short term renewals and sublet activity. Officevacancy rates climbed to 12% range and are anticipated topeak in late 2010 in the 13.5% range.In 2009, the average sales price was down approximately19%. Construction starts were virtually non-existent in2009. Activity in the region was internally generated. Growthwas seen by service and sales companies in the collection,courier/distribution, healthcare and consumer productindustries. The vacancy rate in the retail sector increased toapproximately 8% with rental rates dropping approximately10% to attract retailers to small strip centers.The requirements of New Jersey’s Council of AffordableHousing (COAH) have been temporarily suspended. COAHwas intended to subsidize affordable housing developmentand cannot be passed on to tenants, complicating thereturn on investment calculus for developers at a time withsignificant challenges.ContactNAI The VaughanCompany+1 505 797 1100Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage Income864,696939,220404,526$61,073While the Albuquerque market has not been immune to thenational economic downturn, it appears to have held up fairlywell compared to others around the country. The currentunemployment rate for the Albuquerque MSA is 7.4%, thehighest since 1996 but well below the national average.Albuquerque Economic Development reports a recordnumber of site location visits during 2009. Precise METROindicates that Albuquerque will emerge as a growth leaderduring the recovery period and will outperform the nationaleconomy during the next expansion.The Albuquerque retail market remains soft with a currentvacancy rate of 14%. There was positive net absorption of448,000 SF in Q3 2009 as the Wal-Mart Supercenteropened its 196,000 SF facility. Asking lease rates for neighborhoodcenters and strip centers are down as landlordsstruggle to keep their centers full.The vacancy rate for Albuquerque office space continued itsupward trend to 16% with negative net absorption for theyear. With no new construction, asking lease rates for officespace have remained stable. Two significant projects, the200,000 SF Hewlett Packard call center in Rio Rancho andthe 93,000 SF Carpenter’s Union along the I-25 Corridor inAlbuquerque, are scheduled to be completed in late 2009 orearly 2010.The Albuquerque industrial market is the healthiest of thespecialty markets with a current vacancy rate of 8.8%.Asking industrial lease rates are down 15% from last year astenants take advantage of the opportunity to shop for a lowerlease rate in the market or renegotiate their currentlocations. Employment in construction related industries needsto improve before demand for industrial space increases.Leasing has increased in the second half of 2009 whilesales continue to lag due to economic uncertainty by ownerusersand difficulty in obtaining financing by investors.Albuquerque should continue to grow due to many factorsincluding its mild climate, quality of life and its productivework force.MedianHousehold Income$67,109MedianHousehold Income$49,637Total PopulationMedian Age38.5Total PopulationMedian Age36Southern New Jersey At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIAL$$$N/AN/AN/A21.0021.0010.00$$$N/AN/AN/A24.0024.0020.00N/AN/AN/A$ 22.50$ 22.00$ 14.50N/AN/AN/AN/A13.0%13.0%Bulk WarehouseManufacturingHigh Tech/R&DRETAIL$$$3.003.004.50$$$5.005.5012.50$$$4.004.258.5010.0%10.0%12.0%DowntownNeighborhood Service CentersCommunity Power CenterRegional Malls$$$10.0012.0018.00N/A$$$40.0020.0038.00N/A$ 25.00$ 16.00$ 28.00N/A7.0%16.0%5.0%N/ADEVELOPMENT LAND Low/Acre High/AcreOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidential$$$$N/A125,000.0080,000.0060,000.0075,000.00N/A$$$$N/A250,000.00165,000.00125,000.00300,000.00N/AAlbuquerque At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power CenterRegional Malls$$$$$$$$$$$$N/A14.7512.0021.0018.0015.003.454.256.009.009.0015.0028.00$$$$$$$$$$$$N/A21.8815.0024.0023.0019.006.958.0013.5023.0028.0032.0050.00$$$$$$$$$$$$N/A18.3113.5022.5020.5017.005.756.508.7513.5015.0021.0042.00N/A18.5%N/A13.9%12.6%16.1%8.8%8.8%8.8%27.8%14.7%16.7%22.8%DEVELOPMENT LAND Low/Acre High/AcreOffice in CBD$ 650,000.00 $ 2,000,000.00Land in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidential$$$$$250,000.00150,000.00100,000.00275,000.0025,000.00$$$$$525,000.00350,000.00300,000.00800,000.00275,000.002010 Global Market Report ■ www.naiglobal.com 108

Las Cruces, New MexicoAlbany, New YorkContactNAI 1st Valley+1 575 521 1535Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage IncomeMedianHousehold Income208,136229,49763,528$49,165$38,116New Mexico economists like to say, the Las Cruces economyis insulated from, but not immune to, national economicdownturns. Events of 2009 have served to strikinglyillustrate this truth. While the US entered a recession inDecember 2007, it wasn’t until March 2009, a full 14months later, before Las Cruces saw negative year-overyearemployment numbers.The office market has experienced rising vacancy ratesapproaching 10% - a rate far below the national average,but in excess of the 8% five year historical annual average.Absorbing the 100,000 SF of new office space permitted in2008, will provide building owners little latitude in rental ratenegotiations.In the retail market, there is nothing like the loss of a job todampen consumer sentiment, spending and demand forspace. Following 16 consecutive years of consistent growth,Total Gross Receipts, including the widely watched RetailTrade component, registered a small, uncharacteristicdecline in 2009 Q2 data. It is likely that unfavorable trend willimpact year end totals. Scant new retail sector constructionshould help maintain the supply and demand equilibrium andhold vacancy rates through the coming year within the10-12% range.The Las Cruces multi-family market has exhibited sustainedstability and strength. With a 2000-2009 period marketaverage occupancy of 93.9% and average annual rentalincreases of 2.4%, this has proven to be among the bestperforming commercial real estate sectors in Las Cruces.Developers have apparently taken note as more permitswere drawn for multi-family units in the first two months ofthis year than in the previous two years combined.Las Cruces will see substantial "downtown" renewal withthe addition of Pro's Ranch Market and the renovation ofthe Brazito Plaza. Also, national retailers are looking to getahead of the boomer wave moving to New Mexico whenthey are able to sell their homes elsewhere in the country.ContactNAI Platform+1 518 465 1400Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage IncomeMedianHousehold Income857,461867,195542,766$70,935$55,853Albany, the capital of New York, continues to outperform therest of the state. Recently named the newest internationalhome for AMD and a $2 billion chip fabrication plant, thecapital region is quickly earning its tech valley moniker. Nanotechnologyresearch and numerous opportunities in highereducation are helping to attract and retain workers. Theinsular nature of the state’s government seat has continuedto contribute to the stability of the area.The CBD office market continues to struggle with a glut ofClass B or lower inventory. Vacancy in that sector is 20%or higher. Functionally obsolete buildings that require substantialcapital to renovate are abundant in the downtownmarketplace. The suburban office parks are performing verywell with vacancy rates of 10-12% overall.A large state-owned tract of land commonly known asthe State Campus is being viewed as the next home for amixed-use park. Slated to be unveiled in Q2 2010, the parkwill offer high-end office space, research space, retail anda mix of residential units.The industrial marketplace has been an active arena. Thefew tenants that are moving have taken advantage of thecurrent situation, forcing landlords to reluctantly make lowerpriced deals rather than be burdened with a year-longvacancy. Rates are in the 8-12% range overall with spacesof 25,000 to 50,000 SF.Retail activity has slowed considerably with only the smallerfranchisors and very large, established retailers makingwaves in the pool. Dick’s Sporting Goods expanded to morethan 60,000 SF on two levels. Forever 21 will back fill theformer 30,000 SF space.Investment and multifamily offerings were down slightly aslenders continue to tighten their requirements. This practicehas driven capitalization rates up slightly to an average of8-9% overall.Look for brighter skies and more activity as the year unfolds.As a strong tertiary marketplace, the capital region hasremained a stable and safe environment to live, work andinvest.Total PopulationMedian Age31Total PopulationMedian Age39Las Cruces At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIAL$$$N/AN/A14.00N/A21.0016.00$$$N/AN/A16.50N/A27.0019.50N/AN/A$ 15.50N/A$ 24.25$ 18.00N/AN/A5.8%N/A9.3%21.1%Bulk WarehouseManufacturingHigh Tech/R&DRETAIL$ 3.00N/AN/A$ 6.00N/AN/A$ 4.50N/AN/A5.0%N/AN/ADowntownNeighborhood Service CentersCommunity Power CenterRegional Malls$ 14.00N/AN/AN/A$ 18.00N/AN/AN/A$ 16.50N/AN/AN/A9.5%N/AN/AN/ADEVELOPMENT LAND Low/Acre High/AcreOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidential$$$$$$250,000.00250,000.0025,000.0025,000.00250,000.0020,000.00$$$$$$400,000.00400,000.0045,000.0045,000.00625,000.00105,000.00Albany At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power CenterRegional Malls$$$$$$$$$$$$$22.0018.0012.0016.5016.0011.003.005.509.509.0012.0012.0018.00$$$$$$$$$$$$$26.0024.0016.0022.5020.0016.003.007.5011.5018.0016.0018.0035.00$$$$$$$$$$$$$24.0021.0014.0020.0018.0014.002.755.5510.5013.5014.5015.0026.50N/A5.0%29.0%N/A5.0%14.0%15.0%12.0%10.0%N/AN/AN/AN/ADEVELOPMENT LAND Low/Acre High/AcreOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidential$$$$$$150,000.00150,000.0075,000.0060,000.00150,000.0025,000.00$$$$$$750,000.00250,000.00175,000.00150,000.00850,000.00125,000.002010 Global Market Report ■ www.naiglobal.com 109

New York City, New YorkLong Island, New YorkContactNAI Global New York City+1 212 405 2500Metropolitan AreaEconomic Overview2008Population2013 EstimatedPopulationEmploymentPopulationHouseholdAverage IncomeMedianHousehold IncomeTotal PopulationMedian Age18,962,01919,340,1769,120,649$89,679$62,06538The Manhattan office market was relatively stable at the endof 2009. The 11.9% vacancy reached in Q3 2009 was thehighest Manhattan has seen in four years, but is still amongthe lowest in the country. Rents continued to decline in 2009with average asking rents falling to $52.05/SF, down fromalmost $70.00/SF in late 2008. However, the rate of declinehas stabilized. Sublease space, which had increased eachquarter for over a year, has also stabilized. Most of the recentleasing activity has been led by those companies waiting forrents to hit bottom and finally deciding to make a move toupgrade their existing space at rock bottom prices.Midtown Manhattan enjoys a great diversity of tenants, andthere are several large tenants seeking space in the200,000+ SF range. Tenants with good credit will continueto have the upper hand with landlords offering increasedconcessions. The Midtown South submarket provides secondaryoffice buildings for tenants seeking less expensivealternatives. Downtown Manhattan is bracing for an increasein available space; however, city government is expandingincentives for services companies locating to the area.Manhattan market fundamentals remain weak with currentunemployment at 10.3%, the highest in New York City in 16years. The financial industry continues to reduce its laborforce, job growth and corporate revenues remain stagnantand the credit market remains tight. With the fundamentalsshowing continued weakness, a turnaround in the commercialmarket is not expected until mid to late 2010.Investment sales in Manhattan have been few; howeverdistressed assets are starting to appear in greater numberand it is expected that foreign investors and well capitalizedinvestment groups will seek to take advantage of a newpricing structure, spurring the expected turnaround. Thestabilization of sublet space is another indication that themarket may soon turn around as it indicates firms are holdingonto space for anticipated staffing needs, rather than puttingit on the market at a loss and then having to lease additionalspace at a premium once the market has recovered.There are many positive signs, including a strong workforce,New York City’s global leadership and its diverse industriessuch as: Professional Services, Bioscience, Emerging Technology,Green Industry, Media & Entertainment, Not ForProfit, Fashion and Tourism.ContactNAI Long Island+1 631 270 3000Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage IncomeMedianHousehold IncomeTotal PopulationMedian Age1,267,44411,173,752630,791$119,517$91,44542.1As with most of the country, Long Island is feeling the effectsof the recession. History has shown the local economy tobe stable compared to the rest of the nation, in good timesand bad, as evidenced by the current unemployment rateof 7.4%, well below the national average. However, allsegments of the real estate market are soft and it isexpected to worsen before it improves.The office market has weakened considerably throughout2009. Overall vacancy rates for Class A and B space haveincreased to 11.1%. However, the total availability rate,which accounts for occupied sublet space, has increasedto 17.5%. Landlords are offering substantial rent reductionsand concessions to attract and retain tenants.The investment market has changed rapidly in 2009. Thelack of credit has caused investment sales to come to avirtual standstill with few deals being completed. Many propertiespurchased at top prices in recent years are strugglingto meet debt service. Attention has turned to lenders whoare holding numerous loans in early stages of default.The industrial sector is also very soft. Vacancy rates haverisen to 9% but numerous owner occupants have beenstruggling to sell properties too large for their businessesas sales prices have fallen 20-30% in most submarkets.The retail market has been impacted substantially by therecession. Many auto dealerships have lost their licenses,putting quality properties on the market. That increasedinventory has led to a significant reduction of prices forpotential development sites. Home Depot Expo and CircuitCity have left the market, leaving several big box vacancies.Most of these spaces have not been filled but they arebeing considered by retailers looking to take advantage ofthe opportunities.Unlike the recession of the early 1990s, Long Island is notoverbuilt. Because of this, prevailing sentiment is that therecovery from this downturn may be faster than the recoveryin the mid 90s.New York City At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyMIDTOWN OFFICENew Construction (AAA)$ 110.00 $ 185.00 $ 150.00 N/AClass A (Prime)$ 80.00 $ 225.00 $ 100.00 7.2%Class B (Secondary)DOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAIL (Midtown)$$$$38.0065.0040.0025.00N/AN/AN/A$$$$65.0075.0065.0045.00N/AN/AN/A$$$$52.0070.0052.5035.00N/AN/AN/A6.5%N/A6.4%8.2%N/AN/AN/ACentral Business DistrictNeighborhood Service CentersCommunity Power CenterRegional Malls$ 60.00N/AN/AN/A$1,400.00N/AN/AN/A$ 300.00N/AN/AN/A3.5%N/AN/AN/ADEVELOPMENT LAND Low/Acre High/AcreOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidentialN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/ALong Island At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power Center$$$$$$$N/AN/AN/A30.0028.0022.004.50N/A14.00N/A18.0020.00$$$$$$$N/AN/AN/A36.0034.0028.007.00N/A18.00N/A30.0040.00N/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/A11.0%11.0%11.0%9.0%9.0%8.5%N/AN/AN/ARegional Malls$ 60.00 $ 120.00 N/A N/ADEVELOPMENT LAND Low/Acre High/AcreOffice in CBDLand in Office Parks$N/A500,000.00N/A$ 1,000,000.00Land in Industrial Parks$ 300,000.00 $ 600,000.00Office/Industrial Land - Non-parkRetail/Commercial LandResidential$$500,000.00800,000.00N/A$ 1,000,000.00$ 2,500,000.00N/A2010 Global Market Report ■ www.naiglobal.com 110

Asheville, North CarolinaCharlotte, North CarolinaContactNAI BH Commercial+1 828 210 39401 866 810 5893Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage IncomeMedianHousehold Income416,498446,922219,126$59,194$45,198Asheville is in a great position to do business, sitting at thecrossroads of two major interstates; I-40 which links theeast and west coast of the US, and I-26 which helps connectCharleston, South Carolina, to the Ohio River Valley. Agrowing mix of healthcare, professional/technical services,knowledge-based enterprises and tourism fuels the localeconomy.Industrial vacancy rates were virtually unchanged from2008. New construction in the industrial sector will likely belimited to build-to-suit projects in the new year.Supply-side pressures in the office market are expected tocontinue into 2010 with over 90,000 SF of new space underconstruction and over 195,000 SF of office space proposed.Completions during 2009 surpassed the totals reported ineach of the past three years, and supply side pressure onvacancy will continue to increase as the remaining new spaceis delivered.Approximately 10.5% of the market’s retail inventory wasreported vacant. Several mix-used projects were underway,including Reynolds Mountain and Biltmore Park among others.Barnes and Noble, with their second location in theAsheville market, occupied 28,000 SF of new space at BiltmorePark Town Square, one of the largest tenant movesduring the year.The area unemployment rate was the highest rate reportedsince 1991; however, it continues to be lower than the stateand national average. In addition, the annual job growth rateconsistently tops the state and nation.One of the key advantages to building your business inAsheville is its suitability both as a place to live and a vitalplace to grow your business. Asheville has been ranked byseveral prominent publications. Asheville was ranked numbersix as “Best Metro Places for Business and Careers” byForbes Magazine (March 2009), ranked number two as“One of the Nations Top Arts Destinations” by American StyleMagazine, ranked number eight of Top 10 Metro Areas forQuality of Life by Business Facilities Magazine in July 2009and included as a Favorite City of Business Trips in USAToday Road Warriors in August 2009.ContactNAI Southern Real Estate+1 704 375 1000Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage IncomeMedianHousehold Income1,782,8272,108,238856,303$72,765$62,093Over the last two years, various sources have ranked theQueen City area as the number one place in America in thefollowing categories: Best Place to Live, Most EducatedWorkforce, Top Large Counties for Recruitment & Attraction,America’s Most Livable Communities and Economic StrengthRanking. Eight Fortune 500 companies are headquarteredhere and 326 Fortune 500 companies have facilities here. Avast majority of the region’s employment is directly linked tofinancial, manufacturing, energy and racing related firms.The strategic location, coupled with the low cost of living,keep people moving to the market.The overall vacancy in the Office market is 15.9%, anincrease of 23% over the past year. The vacancy rate in theCentral Business District is 7.6%, up from 2.1% in 2008.With 2.5 million square feet of new space coming on line,the CBD vacancy rate is expected to climb to 12-13%. Thegood news is Charlotte now has sufficient space available tocompete for major corporate relocations.The Industrial market has been fortunate not to suffer fromover supply. Only two speculative buildings are in theconstruction phase in the entire market. The current vacancyrate is 13.5% which holds its own compared to 12.6%a year ago. Although demand today is weaker than thepre-recession period, brokers report an increased demandin the 20,000 to 50,000 square foot range.Retail vacancies are rising, and landlords are offeringgenerous concessions to attract tenants to their centers.Currently, Retail vacancy is at 8.9%, up substantially from5.7% over the past year. However, it is expected that thevacancy rate will continue to rise into mid-2010. Very littledevelopment is expected until rates level off.Other than a few apartment properties changing hands, theInvestment Market has been extremely slow. This may bebeginning to change as a 1.1 million square foot Industrialportfolio at Crosspoint Park sold for $34.2 million. Therewere multiple bidders for the property that sold at roughly a9.5% CAP rate.Yes, the recession is hitting Charlotte, but we feel the areais in a great position to come out of the downturn strongerthan ever.Total PopulationMedian Age42Total PopulationMedian Age36Asheville At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIAL$$$$$$24.0018.0014.0024.0022.0018.00$$$$$$26.0021.0018.0030.0028.0020.00$ 25.00$ 19.50$ 16.00$ 27.00$ 25.00$ 19.0015.0%14.0%18.0%25.0%22.0%16.0%Bulk WarehouseManufacturingHigh Tech/R&DRETAIL$$$2.003.004.00$$$3.005.006.00$$$2.504.005.0024.0%22.0%20.0%DowntownNeighborhood Service CentersCommunity Power CenterRegional Malls$$$$13.0010.008.0016.00$$$$20.0022.0017.0025.00$ 16.50$ 16.00$ 12.50$ 20.5014.0%9.8%10.0%15.0%DEVELOPMENT LAND Low/Acre High/AcreOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-park$$$$300,000.00350,000.00150,000.0060,000.00$$$$800,000.00700,000.00250,000.00200,000.00Retail/Commercial Land$ 400,000.00 $ 1,500,000.00Residential$ 40,000.00 $ 125,000.00Charlotte At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power CenterRegional Malls$$$$$$$$$$$$N/A17.0012.0018.0018.0012.002.252.406.0010.0012.0020.0021.00$$$$$$$$$$$$N/A22.0016.0022.0020.0016.003.253.5010.0023.0020.0030.0050.00$$$$$$$$$$$$N/A19.0014.0020.0019.0014.002.502.807.0018.0018.0024.0037.00N/A7.0%12.0%10.0%10.0%15.0%14.0%5.0%5.0%5.0%10.0%10.0%10.0%DEVELOPMENT LAND Low/Acre High/AcreOffice in CBD$ 650,000.00 $ 1,200,000.00Land in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-park$$$125,000.0065,000.00100,000.00$$$250,000.00125,000.00300,000.00Retail/Commercial Land$ 200,000.00 $ 1,500,000.00Residential$ 60,000.00 $ 125,000.002010 Global Market Report ■ www.naiglobal.com 111

Greensboro/High Point/Winston-Salem, North CarolinaRaleigh/Durham, North CarolinaContactNAI Piedmont Triad+1 336 373 0995Metropolitan AreaEconomic Overview2008Population2013 EstimatedPopulationEmploymentPopulationHouseholdAverage IncomeMedianHousehold IncomeTotal PopulationMedian Age722,220781,425407,900$59,036$51,43939Infrastructure improvements bode well for the future of theregion. Expansion of a third runway and major road improvementshave resulted in a $300 million FedEx Mid-Atlantichub opening at the airport and the location of a 400,000 SFFedEx Ground sorting facility in Kernersville. HondaJet hasopened a headquarters facility at the airport and will deliverthe first of its six-passenger light jets in 2011.The industrial market suffered its share of setbacks in 2009,with an unemployment rate over 11% and the closing of theflagship 790,000 SF Dell manufacturing plant in UnionCross. Industrial vacancies for modern distribution centersover 200,000 SF exceed 6 million SF, an estimated 10-yearsupply at historic absorption levels. The only bright spot isincreased demand for warehouse space between 20,000and 40,000 SF with rents leveling out in the $3.00-$3.50/SF range for good quality space at the airport.The retail sector has continued to deteriorate with smallshop vacancies reaching 25% and tenants going out ofbusiness faster than the landlords can lease the space.Restaurants and boutique shopping have been particularlyhard hit as consumers continue to cut back on spending.Food anchored neighborhood centers are faring better thanother product types, with rents for small shops declining byonly 20%. The forecast for 2010 is more of the same, withlittle hope of substantial improvement until 2012.The office market has followed other market segments, withcutbacks caused by Wachovia’s demise freeing up largeblocks of space in downtown Winston-Salem. Vacancy isover 20% in all markets. There are sporadic signs of activitywith a financial services arm of LabCorp bringing 383 jobsto Greensboro by Q2 2010.Public sector investment has been strong, with UNC-G andNC A&T universities breaking ground on a $60 million centerfor Nanotechnology in east Greensboro. Guilford TechnicalCommunity College is also under way with a $150 millionAirport Campus that will specialize in the aviation and logisticsindustries.ContactNAI Carolantic Realty, Inc.+1 919 832 0594Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage IncomeMedianHousehold IncomeTotal PopulationMedian Age1,150,3051,404,352540,316$75,927$66,96736In May 2009, MSNBC named Raleigh-Durham number twoin the nation for the top five markets likely to recoverquickly. This analysis was based on good job growth, growingpopulation, good weather, lots of first-time home buyers,little overbuilding, vital downtowns where people can livewithout a car, a well educated population, and a large numberof foreclosures that happened early. Fortunately, the regionis also home to the Research Triangle Park, one of the mostsuccessful R&D centers in the world, featuring microelectronics,environmental sciences, pharmaceuticals, andbiotechnology companies.The Triangle area continued to attract new businesses aswell as domestic and international expansions despite thedownturn in the economy. The Triangle Combined MSAadded an average of 10,254 jobs per year (July to June)over the 7-year period ending in June 2009 resulting in anaverage 1.5% annual growth rate. Companies like EMCCorporation announced plans for a $280 million expansionthat will add almost 400 jobs over the next five years.Deutsche Bank will open a technology development centercreating over 300 jobs and investing $6.7 million.However, even with the growth, concerns about the nationaleconomy were reflected in the local office market whichpointed to a rise in vacancy as tenants downsized and newsublease space brought additional pressures. Vacancy rosetwo percentage points higher from 2008 to 15% withminimal net demand. Approximately 1.4 million squarefeet were added to the market during 2009 and rentalrates dropped slightly with concessions offered on extendedleases. Less than 500,000 square feet were underconstruction for 2010.Somewhat surprising, the multipurpose sector experienceda slight drop in vacancy from 16% in 2008 to 15% in 2009with 3% absorption. Uncertainties in the overall economyand financial markets will test this sector into 2010. Rentalrates declined and approximately 300,000 square feet wereunder construction for 2010.Over 1.4 million square feet of retail space was completedin the Raleigh-Durham market in 2009 with an additional900,000 square feet now under construction. Vacancy rosefrom 4% in 2008 to 6% in 2009 and absorption remainedat 3%. Rental rates declined slightly. As constructioncontinues on the Outer Loop (I-540) around Raleigh, newretail opportunities will be opened at major interchanges.Greensboro, High Point, Winston-Salem At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power CenterRegional Malls$$$$$$$$$$$$22.0018.5011.0021.0018.5011.002.003.50N/A8.0012.0016.0022.00$$$$$$$$$$$$28.0021.0015.0026.0022.0016.003.504.75N/A23.0020.0024.0040.00$$$$$$$$$$$$25.0019.5013.5023.0019.0013.003.254.00N/A16.0018.0020.0028.00N/A8.0%25.0%N/A15.0%20.0%15.0%10.0%N/A15.0%20.0%12.0%12.0%DEVELOPMENT LAND Low/Acre High/AcreOffice in CBD$ 700,000.00 $ 2,000,000.00Land in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidential$$$$$100,000.0075,000.0050,000.00125,000.0020,000.00$$$$$300,000.00150,000.00100,000.00250,000.0075,000.00Raleigh/Durham At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIAL$$$$$$25.0018.0014.0024.0019.0014.00$$$$$$28.9525.0017.0030.0024.0016.50$ 26.98$ 21.50$ 15.50$ 27.00$ 21.50$ 15.5012.0%12.0%12.0%15.0%15.0%15.0%Bulk WarehouseManufacturingHigh Tech/R&DRETAIL$$$3.253.507.50$$$4.504.5011.00$$$3.754.009.0015.0%15.0%15.0%DowntownNeighborhood Service CentersCommunity Power CenterRegional Malls$$$$8.0010.0014.0021.00$$$$23.0016.0024.0045.00$ 15.50$ 13.00$ 19.00$ 33.006.0%6.0%6.0%6.0%DEVELOPMENT LAND Low/Acre High/AcreOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidential$$$$$$50.00175,000.00100,000.0080,000.00152,460.0025,000.00$$$$$$90.00225,000.00175,000.00200,000.00750,000.00150,000.002010 Global Market Report ■ www.naiglobal.com 112

Fargo, North DakotaAkron, OhioContactNAI North Central+1 701 364 0244Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage IncomeMedianHousehold IncomeTotal PopulationMedian Age202,025225,041142,133$57,820$50,12732The 2009 Fargo market can best be described as sporadicand uneven. Demand for office and retail space is contractingwhile demand for industrial space is fairly stable. The multifamilysector remains active but with off-market properties.Current inventory of multi-family properties is very low.Excessive surplus office and retail inventories exist.Industrial inventory has a slight surplus. Key Fargo industrydrivers include health care, education, banking, insurance,agribusiness, shipping - transportation, and manufacturing.The office rental market is soft. An overabundance of leasespace with landlord concessions and competitive rentalrates prevails. Currently, there are approximately 219 leaselistings on the market. Rental rates vary from $7.00/SF to$8.00/SF for Class B space and up to $9.50/SF to$11.25/SF for Class A space located in start-up businessparks or along key corridor sites. The surplus of office spaceis expected to carry through 2010. Closed office salesare off from last year's pace and are expected to finishbehind 2008.The industrial rental market is near equilibrium with anominal inventory surplus. Rental rates for Class B heatedspace range from $4.50/SF to $6.00/SF. Year to date closedindustrial sales are slightly behind 2008. The retail rentalmarket is saturated with 142 lease listings on the market.New retail projects including Amber Valley, Cityscapes Plaza,Eagle Run, Osgood, and Shoppes at Urban Plains, haveadded to the surplus. The surplus will carry through 2010.Rental rates for Class A space are $14.00/SF to $16.00/SF.Class B space runs $9.00/SF to $10.75/SF. However, closedretail sales should finish comparable to 2008. MajorI-94 interchange projects are in progress in south Moorheadand south West Fargo creating renewed interest in anddevelopment at those sites. North Dakota State Universityopened a satellite business college & architecture departmentin the CBD.Special mention is made of the historic 2009 Red RiverFlood. Local and regional businesses lost at least one fullmonth of sales and production as a direct result of the flood.Economic impact was felt across all sectors as employerscontributed valuable labor and inventory to this effort.ContactNAI CumminsReal Estate+1 330 535 2661Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage IncomeMedianHousehold IncomeTotal PopulationMedian Age694,360680,988393,378$64,509$54,65839Situated near Lake Erie and several major interstates in theheart of the Midwest, Akron continues to attract entrepreneurs,investors and new businesses through its reputationfor innovation, low cost of living and strong institutionalinvestment in the community. Akron’s greatest growthin 2009 was in health care, education, technology and serviceindustries. Manufacturing and distribution continue tocontract from last year and retail has slowed with consumerspending.Greater Akron saw an increase in institutional developmentprojects throughout 2009. The construction of the $61.6million Infocision stadium at the University of Akron wascompleted this year and welcomed a capacity crowd onopening day. The requirement for educational office spacehas increased as the unemployed seek job and careertraining from ITT Technical Institute, Brown Mackie College,Strayer University and the like. These companies seek ClassA and B office space in markets across the country and haveopened multiple locations throughout Northeast Ohio toaccommodate growth in enrollment.The requirement for medical office space continues toexpand as groundbreaking takes place on hospital andmedical center projects throughout Summit County. SummaHospitals began construction on the Crystal Clinic andacquiring Robinson Memorial Hospital in Ravenna. AkronGeneral expanded the reach of its emergency medicalservices and wellness centers with new facilities and a 30+bed hospital planned for a suburban community.Investors have seen rising capitalization rates for cash-readybuyers and sale/leaseback opportunities abound. Sellerfinancing is now a viable option for many buyers and sellerswho are highly motivated to close transactions. Manufacturinghas taken a hit with the drastic reduction in automotiveassembly. With an ample supply of light industrial spaceavailable, tenant lease terms are shorter. Sale pricesand attractive lease rates offer great opportunities for buyersand tenants.Retail development expanded to suburban communities.These growing areas have lured regional and nationaltenants, speaking to the demand for mid to upscale services.Declining malls, strip centers and plazas are beingreinvented to include mixed use, light industrial, recordsstorage, trade schools and call center space.Fargo At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)$$12.509.50$$16.5011.25$ 15.50$ 10.5012.5%10.5%Class B (Secondary)SUBURBAN OFFICE$ 7.00 $ 8.00 $ 7.50 11.3%New Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIAL$$$12.0010.758.00$$$15.0012.5011.00$ 14.00$ 12.00$ 10.009.8%10.50%11.0%Bulk WarehouseManufacturingHigh Tech/R&DRETAIL$$4.505.75N/A$$6.006.90N/A$$5.506.50N/A9.9%9.9%N/ADowntownNeighborhood Service Centers$$14.0010.00$$16.0012.50$ 15.00$ 11.5014.3%8.5%Sub Regional Centers$ 8.00 $ 9.50 $ 9.00 8.5%Regional Malls$ 18.00 $ 20.00 $ 19.50 3.0%DEVELOPMENT LAND Low/Acre High/AcreOffice in CBD$ 9.20 $ 15.30Land in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidential$$$$$87,120.0076,230.0084,942.00174,240.0021,780.00$$$$$174,240.00108,900.00130,680.00261,360.0054,450.00Akron At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAIL$$$$$$$$$19.0014.009.5017.5014.508.502.252.757.00$$$$$$$$$23.0019.0019.0021.0020.0014.004.003.758.00$$$$$$$$$16.5016.0014.0718.5018.5012.003.253.257.50N/A13.0%10.0%N/A13.0%12.0%14.0%12.0%7.0%DowntownNeighborhood Service CentersCommunity Power CenterRegional Malls$7.00$6.00$10.00$20.00$$$$17.0030.0017.0030.00$$$$12.0013.5014.0025.008.0%14.0%14.0%4.0%DEVELOPMENT LAND Low/Acre High/AcreOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidential$$$$$$350,000.00140,000.0060,000.0055,000.00100,000.0015,000.00$$$$$$525,000.00250,000.00100,000.0090,000.00300,000.0020,000.002010 Global Market Report ■ www.naiglobal.com 113

Canton, OhioCincinnati, OhioContactNAI Spring+1 330 966 8800Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage Income401,820388,122212,030$57,514Stark County, including the greater Canton area, is strategicallylocated in Northeastern Ohio at the crossroads of theEastern and Midwestern markets. Its network of interstatehighways and one of the fastest growing airports in thecountry, allows companies easy access to several majorcities. This, coupled with a low cost of living, primarily theresult of very reasonable housing prices, makes StarkCounty a great place for companies and families to locate.A bright spot in the Stark County market has been thegrowth around the airport. The Akron-Canton Airport (CAK)offers the lowest average fare of any airport in Ohio. Industrial,office, retail, and hospitality have all developed alongwith the airport. Located in close proximity to the airport,Rolls Royce just announced a multimillion dollar expansionof their Fuel Cell Prototyping Center at Stark State College.Other areas throughout the county also remain upbeat. Onthe industrial front, Shear's Potato Chip broke ground onOhio's fist Gold LEED-Certified Food Manufacturing Plant inNEOCOM Industrial Park in Massillon. Another major projectis the new Federal Building in Downtown Canton. This$14 million dollar facility is expected to be completed inJuly 2010.The office market remained relatively flat with severaltenants consolidating space. The Schroyer Group, for example,is consolidating their operations and planning to move intoits new state of the art 57,000 SF office in the former HooverBuilding. The industrial market continues to struggle withquite a few large, older manufacturing buildings on themarket for sale or lease. However, distribution space of10,000 to 50,000 SF is somewhat limited around the I-77corridor. Downtown Canton remains a hot spot for retail withseveral new restaurants, a bustling arts district and othershops opening during 2009.Traditionally, the Canton area doesn't experience theextreme highs or lows found in other markets. This held trueas the overall region remained relatively stable compared toother markets around the country.ContactNAI Bergman+1 513 769 1710Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage Income2,187,2332,317,5321,114,241$68,738The Cincinnati, Ohio regional market has recently beenrecognized for its inclusion on the top 25 list of total personalincome (TPI), (U.S. Bureau of Economic Analysis), for twoof the top 10 hospitals in the nation (Modern Healthcare), andthree of the nation’s top 500 fastest growing businesses (Inc.).Cincinnati has two major areas of growth in an otherwisechallenging year. The Banks project in the CBD is a2.8 million SF mixed-use development on the Cincinnatiriverfront located between Paul Brown Stadium and theGreat American Ballpark. The second major growth area isthe Cincinnati/Dayton Metroplex, specifically the WestChester-Middletown submarket. Located between Daytonand Cincinnati, this market is activity-driven. The area ishome to three new hospitals: Westchester Medical Center,Children’s Medical Center Liberty Campus, and AtriumMedical Center; GE Aviation, a 403,000 SF campus in WestChester; and the Cincinnati Premium Outlets in Monroe, anupscale, 100-store retail mall.While transactions are conservative and the processextended, the commercial real estate market continues to bestable. The office market has produced positive absorption.Vacancy and rental rates remain consistent within historicmargins, and certainly better than has been witnessed inother U.S. office markets in general. At rates approaching8% for warehouse and flex at 10%, Cincinnati industrialwarehouse vacancy is also faring better than the U.S. norm.Though fewer transactions overall, sales prices haveremained steady and rental rates have dropped less than20%. Retail rental rates have increased as the retailinventory is being absorbed. Scheduled projects for Q42010 completion include The Banks Phase I (70,000 SF)and Corryville Crossings (100,000 SF).Cincinnati’s business-friendly environment, affordable housing,well-educated workforce, stability, diverse economy, andeasy access to national and regional markets create a solidenvironment for new business and continued growth.MedianHousehold Income$49,569MedianHousehold Income$57,738Total PopulationMedian Age40Total PopulationMedian Age37Canton At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power CenterRegional Malls$$$$$$$$$$$$$14.0010.008.0014.5012.008.002.002.5010.008.008.008.0020.00$$$$$$$$$$$$$16.0016.0012.0022.0018.0012.004.003.5014.0016.0016.0016.0030.00$$$$$$$$$$$$$15.0013.0010.0018.2515.0010.003.003.0012.0012.0012.0012.0025.00N/A10.0%16.0%N/A14.0%16.0%14.0%12.0%6.0%10.0%14.0%14.0%10.0%DEVELOPMENT LAND Low/Acre High/AcreOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidential$$$$$$75,000.00100,000.0020,000.0075,000.00200,000.0020,000.00$$$$$$150,000.00250,000.00100,000.00150,000.00850,000.00200,000.00Cincinnati At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power CenterRegional Malls$$$$$$$$$$$20.0011.208.00N/A10.503.911.501.45N/A3.173.0011.0215.00$$$$$$$$$$$25.0022.8422.11N/A27.8126.417.957.50N/A18.0021.0015.2530.00$$$$$$$$$$$22.5016.1013.26N/A16.5814.303.302.75N/A14.1811.2114.6521.3123.0%12.0%11.0%N/A15.1%18.0%11.0%3.0%N/A2.0%13.0%7.0%10.0%DEVELOPMENT LAND Low/Acre High/AcreOffice in CBD$ 300,000.00 $ 3,000,000.00Land in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-park$$$125,000.0029,443.0026,000.00$$$350,000.00150,000.00350,000.00Retail/Commercial Land$ 150,000.00 $ 3,809,524.00Residential$ 20,000.00 $ 250,000.002010 Global Market Report ■ www.naiglobal.com 114

Cleveland, OhioColumbus, OhioContactNAI Daus+1 216 831 3310Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage IncomeMedianHousehold Income2,056,5881,958,4281,260,439$63,694$54,416Battered by continued economic woes, particularly in thebanking and automotive sectors, the Cleveland market wascharacterized in 2009 by sluggish leasing velocity, slowlyrising vacancy rates and a dramatic absence of propertysales. The CBD office sector was the most stable marketsegment. Seeking to take advantage of a tenants’ market,several major companies made new lease commitments,solidifying the downtown market for the next several years.Additionally, downtown Cleveland is positioned to capturemomentum from several large public-sector projects eitherplanned or under way, including a new convention centerand medical mart, a mixed-use redevelopment of the EastBank of the Flats and possibly a new hotel/casino. Thesuburban office market was a more difficult environment,hampered by widespread financial hardship among tenants.A couple of bright spots include the announcement by EatonCorporation to develop a new world headquarter campusat Chagrin Highlands in the Eastern suburbs and thecontinued development of substantial medical facilities bythe Cleveland Clinic in Twinsburg and University Hospitalsat Chagrin Highlands.It was also a challenging environment in both the industrialand retail markets. The overall industrial vacancy rateincreased 100 basis points during the year and absorptionwas negative each quarter. Although there was moderateleasing activity, it was dominated by tenants seeking lowerrents, less space and shorter terms. The retail marketshared many of the same characteristics, particularly amongtenant activities. However, unlike the industrial market, whichhad virtually no new construction, the retail market did havea few projects in the pipeline. These included the Plaza atSouthpark in Strongsville (300,000 SF) and City Center ofAvon (100,000 SF).The improvement of broader economic indicators shouldbode well for the region in 2010. However, direct impact inthe real estate segment likely won't be noticeable until thesecond half of the year and a dramatic improvement will nothappen until the capital markets return to a more normalenvironment.ContactNAI Ohio Equities, LLC+1 614 224 2400Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage IncomeMedianHousehold Income1,811,6621,948,4231,064,756$67,218$58,492Columbus continues to lead the state in job growth, populationgrowth and new development, due in large part tobeing the state seat of government, and home to the OhioState University, Battelle Memorial Research Institute, healthindustry leader Cardinal Health, Nationwide Insurance andthe Limited Brand family of stores. Major hospital systemsOhio Health, University Hospitals and Mount Carmel HealthSystems continue to compete for market share with newoffice development and the addition of hospital beds.Demand for all office product stagnated in 2009 with a lossof occupied square footage of about 1% of the total. Vacancyincreased in all office markets except for suburban Class A,which decreased by 0.5%. Rental rates fell in all officemarkets as a result of landlords aggressively chasing tenantrenewals. Many office leases had rates reduced andterms extended, as tenants took advantage of landlordshoping to stabilize assets that would need refinancing in thenext few years.All segments of the warehouse market continue to stagnate,with vacancy increasing about 1% in bulk and manufacturingspace. Interest from national retailers for new developmenthas slowed substantially. Fast food is the only segment ofthe retail market with new store growth. Retail rates havefallen across the board, and by as much as 25% or more forthe most expensive space.Residential development of all kinds is virtually non-existent,with the exception of a few market apartment buildingsbeing developed. Single family developers continue to pickup undeveloped blanks from lenders and competitors whohope to resume building once the existing inventory startsto be absorbed. Capitalization rates for all investment productseems to have stabilized. Properties that had been tradingat 7% capitalization now hover around 9%.The central Ohio economy continues to chug along with thebulk of activity being generated by local operators not pulleddown by economies outside our region.Total PopulationMedian Age40Total PopulationMedian Age36Cleveland At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power CenterRegional Malls$$$$$$$$$$NA18.0014.0021.5016.0013.002.252.00NANA5.004.0010.00$$$$$$$$$$NA24.0019.0028.5024.0017.005.506.00NANA32.0030.0040.00$$$$$$$$$$NA17.0915.0027.5019.6216.633.503.75NANA12.0014.0025.00NA11.7%17.3%42.0%11.3%13.1%7.9%8.3%NANA11.9%13.7%3.5%DEVELOPMENT LAND Low/Acre High/AcreOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-park$$$$10.00200,000.0070,000.0090,000.00$$$$125.00400,000.00150,000.00175,000.00Retail/Commercial Land$ 60,000.00 $ 2,000,000.00Residential$ 10,000.00 $ 120,000.00Columbus At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power CenterRegional Malls$$$$$$$$N/A16.2511.25N/A15.0013.001.000.75N/AN/A10.0012.00N/A$$$$$$$$N/A25.0016.00N/A19.0016.003.253.00N/AN/A24.0016.00N/A$$$$$$$$N/A17.0013.50N/A17.0013.502.252.75N/AN/A14.0015.00N/AN/A12.7%13.7%N/A10.0%18.4%11.6%8.5%N/AN/A19.0%15.0%N/ADEVELOPMENT LAND Low/Acre High/AcreOffice in CBD$ 34.00 $ 40.00Land in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidential$$$$140,000.0031,000.0035,000.0015,000.00$6,000.00$$$$$175,000.0080,000.0075,000.00750,000.0010,000.002010 Global Market Report ■ www.naiglobal.com 115

Dayton, OhioContactNAI Dayton+1 937 294 7777Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage IncomeMedianHousehold Income827,370807,016459,851$59,972$53,222With commercial real estate conditions expected to weakeninto 2010, many commercial banks that provided loans duringthe commercial real estate buying spree now face capital shortfallsand will be forced to stop extending loan due dates andbegin cleansing their balance sheets of troubled assets. Theopportunities to buy at steep discounts during this time periodwill be ample for investors with cash-plentiful balance sheets.The Dayton office sector ended Q3 2009 with a vacancy rateof 11.7% and negative absorption of 4,295 SF. Rental ratesended Q3 at $14.64 SF, continuing a downward trend. Atotal of 51,780 SF were delivered in Q3 with 78,866 SF underconstruction. The strongest submarket remains the southmarket with access to I-75 & I-675. There is almost nospeculative development under way in the market; almosteverything currently under construction is build to suit or fullypre-leased.Notable office deals in 2009 included DRS Technologies’ leaseof 47,000 SF in Mission Point in the Northeast submarket andOhio Institute of Photography & Technology’s lease of 54,072SF in the Dayton Walther Building in the South submarket.The Dayton industrial sector ended Q3 2009 with a vacancyrate of 9.6% and negative absorption of 679,202 SF. Rentalrates ended Q3 at $3.68 SF, up slightly despite the risingvacancy factor. The strongest submarkets remain the I-75corridor to the south and the I-70 corridor to the east.Notable industrial deals in 2009 included Soin International’slease of 115,000 SF in the Central submarket, and Phygen’slease of 34,000 SF in the Northeast.The Dayton retail sector ended Q3 2009 with a vacancy rateof 9.4%, and absorption was negative 20,950 SF. Rental ratesended Q3 at $9.25 SF, declining in step with the risingvacancy rate. The stronger submarkets remain the south andnortheast markets.Wright Patterson Air Force Base continues to be the region’seconomic engine, with a dozen new construction projects inthe pipeline valued over $300 million. The 1,000,000 SF offacility space under construction over the next three yearswill bring an additional 1,200 new jobs to the market.Oklahoma City, OklahomaContactNAI Sullivan Group+1 405 840 0600Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage IncomeMedianHousehold Income1,230,3691,321,614658,188$63,547$47,782Oklahoma City will end 2009 at just above 6% unemployment,one of the lowest in the country. The strong oil and gasindustry, low vacancy and low cost of living have helped thecity weather the storm. Oklahoma City is home to DevonEnergy, which just broke ground on a 750,000 SF, 53-storyoffice building to be completed in 2012 in the CBD.The retail market is the weakest with overall vacancy of12%. Class A rates are $21/SF, Class B rates $12/SF andClass C rates are $8/SF NNN. No new construction wasdelivered in 2009. The industrial market is one of thestrongest markets, with vacancy at 9.6% up from 8.2% ayear ago. Bulk warehouse rates average $3.75/SF NNN.There is very little available over 24' clear.The Oklahoma City office market remains strong with overallvacancy at 10%, up from 8.9% a year ago. Rents are verystable with Class A at $22/SF, Class B at $14/SF and ClassC at $10/SF, all quoted as full service. No new constructionis planned except for Devon Energy’s 750,000 SF corporateheadquarters in the CBD to be completed 2012.The multifamily market continues to be very strong withoverall vacancy at 9.5%, which is up from 7.0% a yearearlier. Rental rates for Class A properties average$.95/SF/month, Class B at $.75/SF/month, and Class C at$.49-$.58/SF/month. There is a great deal of constructionin the multifamily market with over 2,000 units currentlyunder construction. We expect the market to be very stableand improve as single family construction is at a standstill.Oklahoma City is the third best city in the country accordinga Forbes Magazine October 2009 report, based onlow unemployment, increasing home values and stronggovernment leadership.Total PopulationMedian Age39Total PopulationMedian Age35Dayton At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICEPremium (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersSub Regional CentersRegional Malls$$$$$$$$$$$$17.2516.0410.2414.0016.049.611.64N/A4.508.255.0010.5017.21$$$$$$$$$$$$18.2522.9814.5617.2522.9820.934.51N/A13.3315.2312.7514.0036.00$$$$$$$$$$$$17.5517.9513.5516.5820.5315.153.44N/A10.0710.279.3611.1619.8015.4%16.9%18.2%8.8%13.3%14.6%9.2%N/A25.1%14.6%16.9%6.3%5.9%DEVELOPMENT LAND Low/Acre High/AcreOffice in CBD$ 6.00 $ 14.00Land in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidential$$$$$38,000.00185,000.0028,500.0050,000.008,500.00$$$$$142,500.0074,250.0068,500.00950,000.0092,500.00Oklahoma City At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power CenterRegional Malls$$$$$$$$$$$$21.0015.009.0019.0017.0015.002.852.257.00N/A11.408.8012.00$$$$$$$$$$$$23.0017.0010.0021.0019.0017.005.409.259.00N/A15.0012.0016.00$$$$$$$$$$$N/A16.0014.0020.0018.0016.004.135.758.00N/A13.2010.8014.00N/A11.9%10.0%N/A16.0%10.0%5.4%14.0%15.3%N/A4.3%9.4%10.2%DEVELOPMENT LAND Low/Acre High/AcreOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidential$$$$$$150,000.00400,000.0065,000.00250,000.0085,000.0012,000.00$$$$$$250,000.00500,000.0085,000.00400,000.00300,000.0020,000.002010 Global Market Report ■ www.naiglobal.com 116

Tulsa, OklahomaPortland, OregonContactNAI CommercialProperties+1 918 745 1133Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage IncomeMedianHousehold Income916,457944,580492,642$64,106$48,239The Tulsa market, with extensive oil and energy baseemployment, remained cautiously stable during the firstthree quarters of 2009 while now experiencing real impactand slowdown from the national economic downturn that isaffecting other markets. However, the increase in commercialvacancies for Tulsa is still among the lowest of the country’slargest metro areas.The office market is holding tight to its 2008 vacancy levelsas demand and relocations have tapered off. The vacancyrate for the CBD, at 23.7%, remains the highest in themarket. The suburban market continues to remain thestrongest sector with majority of higher class buildingsaveraging $14-$18.35/SF. The office market has maintaineda 76.4% occupancy rate overall with approximately21,183,758 SF in 148 buildings. The overall vacancy for a15,912,250 SF retail market has slightly increased about1% to 15.09%, the highest in a decade. Rental rates haveactually risen since 2008 with $19.64/SF for Class A and$10.47/SF for Class B properties. However, retail feelingthe effects of thinning national tenants and larger bigboxes vacated, will see increased vacancies, reduced rentpressures and stiffer competition for the remainder of 2009.In comparison, the industrial market has fared better thanother sectors despite a 3.5% vacancy increase from 2008,or approximately 8% total, on an inventory of 60,000,000SF. Lease rates have softened for new leases and renewals,with current averages of $4.07/SF for bulk warehouse and$6.65/SF for service center spaces. Investment/land salesfor multi-family, hospitality and retail have virtually stoppedfrom late 2008 with the notable exception of a $38 millionHilton hotel/retail development in the CBD across from thenew BOK Arena.Given Tulsa’s energy dependence, the stabilization of oil andgas prices along with a dose of consumer confidence willensure that Tulsa can successfully navigate its mild storm.ContactNAI Norris, Beggs& Simpson+1 503 223 7181Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage IncomeMedianHousehold Income2,248,5542,428,9481,093,050$72,032$59,248Portland was named the #1 “Greenest City in America” byPopular Science last year, and sustainable industries likesolar and wind power and green buildings are a significantand growing presence in the area’s economy. Software andactivewear companies (Columbia Sportswear and Nikeare headquartered in Portland) are also important sectors.Portland’s employment climate was challenging in 2009,but the city’s green reputation, cultural offerings and outdoorofferings continue to attract new businesses and residents.Office vacancy increased considerably during 2009, butClass A space in the CBD remained tight, around 6%. Nonew CBD projects will deliver until summer 2010. Shorenstein’sFirst & Main and Park Avenue West were put on holddue to a lack of financing. Vacancy in the suburban marketsrose to around 20%, as Kruse Way and other submarketswhere many financial firms were located suffered highervacancy rates.The industrial market softened, with vacancy rising to 15%.Though construction was down, work continued on FedExGround’s facility in Tigard, which should deliver in summer2010 and employ about 650. One ofthe largest transactionsof the year was SEH America’s $55 million purchase ofHewlett-Packard’s Vancouver, Washington, campus.Retail vacancy rose to around 8%, and the Portland marketsaw some big-box spaces coming back on the market. Thebankruptcy/liquidation of Joe’s Sports, which had 14 Oregonstores, left considerable vacant space, but Dick’s SportingGoods leased six metro locations of around 50,000 SF each.Multifamily vacancy hovered around 5%; fewer tenants wereactive, as some doubled up or moved in with family to savemoney. Others took advantage of the $8,000 first-time homebuyer tax credit. Nearly 1,000 high-end units delivered inthe downtown area in the first half of the year, and it willtake time for those units to be absorbed.Though 2009 was a challenging year, Portland has solidcommercial property fundamentals, and the metro area iswell-positioned for economic recovery in 2010. The Portlandmetro area is expected to add more than 76,000 jobs inthe next four years, and environmental services and the hightechindustry should continue to be key areas of job growth.Total PopulationMedian Age37Total PopulationMedian Age37Tulsa At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power CenterRegional Malls$$$$$$$$$$$NA14.0011.0019.0013.5011.003.252.503.75N/A6.0010.0018.00$$$$$$$$NA19.0015.0021.0021.1416.00$4.75$4.00$6.00N/A13.0018.0026.00$$$$$$$$$$$NA6.8913.8419.5016.0013.504.073.005.25N/A10.5014.2722.00NA9.1%17.4%N/A14.5%18.0%29.3%7.0%4.6%N/A15.1%14.4%3.5%DEVELOPMENT LAND Low/Acre High/AcreOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-park$$$N/A260,000.0033,000.0030,000.00$$$N/A785,000.00217,800.00239,580.00Retail/Commercial Land$ 237,400.00 $ 1,220,000.00Residential$ 15,000.00 $ 52,000.00Portland At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power CenterRegional Malls$$$$$$$$$$$$$29.0023.0015.5025.0012.0011.004.975.145.8412.006.0013.6414.26$$$$$$$$$$$$$39.0035.0030.0032.0033.5037.4016.0416.1317.2995.0035.0030.9534.00$$$$$$$$$1$$$$132.7529.0022.7528.7529.2515.856.116.690.4928.5020.0017.879.25N/A6.7%17.8%N/A22.6%18.9%14.3%18.9%15.7%9.8%9.3%9.2%3.3%DEVELOPMENT LAND Low/Acre High/AcreOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-park$$$150.00385,000.00N/A200,000.00$$$355.00975,000.00N/A450,000.00Retail/Commercial LandResidential$ 310,000.00N/A$ 1,050,000.00N/A2010 Global Market Report ■ www.naiglobal.com 117

Allentown, PennsylvaniaBerks County, PennsylvaniaContactNAI Summit+1 610 264 0200Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage IncomeMedianHousehold IncomeTotal PopulationMedian Age810,773827,614366,200$68,490$57,23540The Lehigh Valley, located in eastern Pennsylvania, offersall of the amenities of major urban areas. The Lehigh Valleyis the third largest region in Pennsylvania. It is well situated,just 95 miles to New York City and 53 miles north ofPhiladelphia. The Lehigh Valley is an excellent location forbusiness and industry. The Lehigh Valley has 11 higherlearning institutions and healthcare facilities that have beenrecognized nationally and continue to grow in the region.The area consists of an enterprising and diversified economythat has led to higher-income jobs, a growing and thrivingpopulation and tremendous commercial and industrialgrowth in the region. The Lehigh Valley is home to some ofthe world’s top corporations in a variety of fields, including:Air Products and Chemicals, Inc., B. Braun Medical Inc.,Binney & Smith, Olympus and many others. Excellent transportationaccess also exerts an important influence on theLehigh Valley. The most important highways in the area areRoute 22, Interstate 78, which connects the Lehigh Valleywith Harrisburg to the west and New Jersey to the east, andmajor roadways such as Interstate 81 and 83 to the north.Route 22 provides fast, limited access between Allentown,Bethlehem, and Easton. The Extension of the PennsylvaniaTurnpike can also be accessed off Route 22 and Interstate78, which connects Philadelphia with Wilkes-Barre andScranton areas. The area is also served by the Lehigh ValleyInternational Airport.The Lehigh Valley market remains an attractive market toinvestors, importers, exporters, manufacturers and high-techcompanies. Developers, enticed by abundant land, favorabletaxes, the lure of railway access and infrastructure, continueto secure land positions along Route 22 and Interstate 78corridors. Rental rates in all markets have remainedrelatively stable despite the economy.The industrial market continues to be one of the regionslargest growth areas. Modern shopping malls, big-box andlifestyle centers remain popular. Several developments haverecently been completed, including Promenade in Sauconand Airport Center along Route 22.ContactNAI KeystoneCommercial & Industrial+1 610 779 1400Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage IncomeMedianHousehold IncomeTotal PopulationMedian Age403,204405,964190,940$68,129$56,58238.5Berks County competes for business in the New Jersey,New York and Maryland markets. Food companies, plastics,specialty metals and battery manufacturing are all wellestablished industries in the area. Medical and financialservices are key drivers in the office sector with technologybasedbusinesses rapidly emerging. Private/Public partnershipsare effectively linking the Penn Corridor from Readingto Wyomissing.The office market has shown mixed results. Class Avacancy and rental rates have experienced a slightdownturn, while Class B vacancy is down 10% and rentalrates remain flat. Vacancy in the Class C sector is upwith unoccupied properties accounting for over 1.1 millionSF. This spells opportunity for both tenants and buyers.Approximately 300,000 SF of office space was absorbed in2009 with a total of 450,000 SF of new space proposedfor 2010.Industrial inventory levels have risen sharply with 6.1 millionSF currently available. Approx. 826,000 SF of new productwas added during the past year. The market had negativeabsorption of 1,072,100 SF of product compared with243,000 SF of positive absorption the prior year. Lease ratesare down slightly with landlord concessions a commonoccurrence. Leasing activity is up as many users are unableto obtain financing. Gross sale of industrial product was up$23 million over the prior year for a total of $179 million.Sale prices were down 12% with a prices ranging from$51/SF for Class A space to $29/SF for Class C.Residential new construction is down 47% with developerssitting on over 2,000 approved, but unimproved lots. Notableretail projects include the 500,000 SF Exeter Commons anda 253,000 SF shopping center in Temple. The $75 millionWyomissing Square development is complete with 248apartments and a 135-room Marriot Courtyard. A 215-roomDoubletree has been proposed with completion scheduledfor 2010.Watch for a Technology Park to be developed at theReading/Berks Airport and the emergence of Bryne Eyre, a3,000 Acre PRD at the I-176 and PA Turnpike interchange.The BOSS 2020 program will enhance traffic flow and boostdevelopment of Sinking Spring Borough and its vicinity.Allentown At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIAL$$N/AN/AN/AN/A17.0010.00$$N/AN/AN/AN/A25.6022.00N/AN/AN/AN/A$ 22.81$ 18.40N/AN/AN/AN/A14.5%16.8%Bulk WarehouseManufacturingHigh Tech/R&DRETAILDowntown$ 2.75N/AN/AN/A$ 7.75N/AN/AN/A$ 4.18N/AN/AN/A14.60%N/AN/AN/ANeighborhood Service CentersCommunity Power CenterRegional Malls$$$8.003.0010.00$$$28.5018.0040.00$ 13.86$ 10.02$ 16.728.9%3.3%4.2%DEVELOPMENT LAND Low/Acre High/AcreOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidential$$$$$N/A250,000.00115,000.0080,000.00200,000.0050,000.00$$$$$N/A300,000.00165,000.00125,000.00500,000.00110,000.00Berks County At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIAL$$$$$$15.0012.008.0018.0016.0013.50$$$$$$18.0015.5012.5021.0021.0018.00$ 17.00$ 14.25$ 12.00$ 19.00$ 18.00$ 15.30N/A4.8%23.5%N/A13.9%12.1%Bulk WarehouseManufacturingHigh Tech/R&DRETAIL$$$3.002.904.75$$$4.104.004.75$$$3.503.296.3520.0%18.0%3.0%DowntownNeighborhood Service CentersCommunity Power CenterRegional Malls$$$$12.5016.0013.0013.25$$$$16.0021.5018.0016.75$ 13.25$ 18.25$ 15.25$ 15.0012.0%10.0%11.0%13.0%DEVELOPMENT LAND Low/Acre High/AcreOffice in CBD$ 6.00 $ 8.00Land in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-park$$$130,000.0060,000.0048,000.00$$$250,000.00110,000.00175,000.00Retail/Commercial Land$ 155,000.00 $ 1,225,000.00Residential$ 25,000.00 $ 50,000.002010 Global Market Report ■ www.naiglobal.com 118

Bucks County, PennsylvaniaHarrisburg/York/Lebanon, PennsylvaniaContactNAI Mertz+1 215 221 1100Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage IncomeMedianHousehold Income616,356604,078320,335$87,172$75,848The Bucks County industrial market totals 55.5 millionSF and is a premier location for both industrial and officebusinesses. Bucks County is strategically located north ofthe city of Philadelphia, with immediate access to I- 95 andI-276, and is located in the heart of the Boston to Washington,DC, corridor.Inventory for lease and sale remains readily available. Saleprices declined approximately 10% and product remainedon the market for a considerably longer period of time.Lease rates have become more competitive with aggressivelandlord concessions. The vacancy rate increased 2% fromlast year to approximately 13%.Bucks County features two of the best land tracts available;1,200 acres within the Keystone Industrial Port Complex(KIPC) and another 250 acres in Langhorne, Pennsylvania.Notable transactions include Abington Metals completingtheir high-tech 50,000 SF build-to-suit and AE Polysiliconwith their $53 million facility still under construction. Thesetwo transactions are both located in the KIPC.The Bucks County office market activity also sloweddramatically with considerable sublease space available ascompanies continue to downsize and show the effects ofthe recession. Vacancy at year end stands in the 20% range,reflective of the weakened economy. The total net officeabsorption remains negative and correspondingly, rental rategrowth continues to be negative with concessions increasing,as landlords try to compete with the inexpensive rental ratesand flexible terms that most sublease space affords.Currently, leasing activity is composed of mostly renewalsand absorption of sublease space. Average Class A rentremains steady at $25.50/SF, with Class B space averagingaround $20.23/SF and Class C rent averaging $19.18/SF.Keystone Industrial Port Complex was designated a KOIZ,adding 1,259 acres of heavy industrially zoned land withport and rail facilities. KOIZ offers companies special taxexemptions and abatements on their real estate, state andlocal taxes, as well as priority for state and local financingprograms.ContactNAI CIR+1 717 761 5070Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage IncomeMedianHousehold Income535,917553,096357,066$66,334$55,318Central Pennsylvania is home to many prominent, high profileFortune 500 companies, including Hershey Foods, Rite-Aid,HARSCO, Graham Packaging and GIANT Foods. As the CapitalCity of Pennsylvania, Harrisburg has a large public sectorbase. The combination of government, manufacturing andmedical industry has resulted in a stable local economy yearafter year. Central Pennsylvania has encountered some marketcontraction led by the industrial and investment sectors.The region’s office market has experienced weakeningdemand due to job cuts and business closings. Office rentalrates are down approximately 10-15%, while absorptionrates were generally flat. However, there are some brightspots. The Commonwealth of Pennsylvania’s 411,000 SFmaster lease at 555 Walnut Street is the largest lease yearto-dateand probably in the history of the mid-state officemarket. Approximately 160,000 SF of new inventory enteredthe market in 2009, far lower than what was projected in2008.With economic uncertainty impacting the demand for warehousespace, and recently executed speculative buildingprojects increasing an already sizeable inventory, theregion’s industrial real estate market suffers from unprecedentedvacancy rates. Landlords seeking tenants in the100,000 SF to 350,000 SF range have an overwhelmingset of competing buildings, particularly at the Class A level,which has forced them to explore innovative incentives toremain competitive. Landlords are placing significant downwardpressure on near-term rents to secure tenants.However, beyond the three- to five-year horizon, thereis reluctance by institutional investors to discount thatperceived future market rental. Despite rising vacancyrates and lower rental rates, retail development in CentralPennsylvania remained relatively active during 2009Cedar Shopping Centers completed two grocery anchoredshopping centers, Blue Mountain Commons in Lower PaxtonTownship and Northside Commons Shopping Center inCampbelltown. Pacific Development has begun constructionon Newberry Commons, a Wal-Mart anchored shoppingcenter, located in Newberry Township, York County.Total PopulationMedian Age41.4Total PopulationMedian Age40Bucks County At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIAL$$$N/AN/AN/A25.0020.0014.00$$$N/AN/AN/A30.0028.0022.00N/AN/AN/A$ 27.50$ 25.50$ 20.23N/AN/AN/A11.0%11.5%12.5%Bulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power CenterRegional Malls$$$2.252.504.50N/AN/AN/AN/A$$$4.004.508.50N/AN/AN/AN/A$$$3.253.506.50N/AN/AN/AN/A13.0%15.0%13.0%N/AN/AN/AN/ADEVELOPMENT LAND Low/Acre High/AcreOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidential$$$N/A130,000.00125,000.0090,000.00N/AN/A$$$N/A490,000.00225,000.00200,000.00N/AN/AHarrisburg/York/Lebanon At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power CenterRegional Malls$$$$$$$$$$$$$17.5017.0014.0019.5016.7512.502.001.004.0012.008.0015.0015.00$$$$$$$$$$$$$24.0022.0017.5021.0019.5016.754.003.509.0015.0018.0025.0025.00$$$$$$$$$$$$$20.7519.5015.7520.2518.1314.633.002.256.5013.5013.0020.0020.00N/A3.00%7.00%N/A6.0%11.0%17.0%10.0%12.0%13.0%12.0%12.0%12.0%DEVELOPMENT LAND Low/Acre High/AcreOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-park$$$$75.00125,000.0080,000.00100,000.00$$$$150.00225,000.00135,000.00250,000.00Retail/Commercial LandResidential$ 250,000.00N/A$ 2,000,000.00N/A2010 Global Market Report ■ www.naiglobal.com 119

Lancaster, PennsylvaniaPhiladelphia, PennsylvaniaContactNAI CommercialPartners Inc.+1 717 283 0600Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage IncomeMedianHousehold Income506,093524,597271,223$63,861$56,837Lancaster continues to benefit from a diverse economicbase even in the face of today’s turbulent economy. Whileproperty values and lease rates have declined, statisticsshow much less downturn than other parts of the country.New development exists in many segments of the marketand is expected to continue through 2010.The revitalization of downtown Lancaster strengthenedwith the long anticipated opening of the Lancaster CountyConvention Center and 300-room Marriott Hotel. Othernotable projects include Urban Place, a redevelopment ofthe Kerr Glass complex into a mixed use developmentof over 300,000 SF. Also under way is the redevelopment ofthe 65-acre Armstrong World Industries site by a jointventure of Lancaster General Hospital, Franklin & MarshallCollege and our local EDC.The economic downturn has impacted Lancaster’s realestate market in varying degrees. The industrial sector hasbeen less impacted overall with stable occupancy levels andmoderately lower lease rates. The office sector continuesto be soft, especially for Class B and C space, with overalllease rates declining by 15-20%. Most office transactionshave been as a result of specialized medical and financialservices companies occupying newer Class A facilities.The retail occupancy levels have been impacted by a loss oftenants such as Circuit City and Linens and Things, yetLancaster continues to be under stored. Recent projectsinclude the development of a new Lowe’s and Best Buy atthe former Crowley Foods site, as well as a reported Kohl’sanchoredcenter of approximately 250,000 SF. In addition,there are several other large retail projects that remainin the development pipeline that comprise more than1.5 million SF.Looking forward, we anticipate further stabilization ofmarket conditions as we enter 2010, including increasesin absorption rates and a positive trend in overall propertyvalues and rental rates. Lancaster’s wide range of agricultural,manufacturing, retail, medical, service and touristrelated businesses provide the foundation for a revitalizedlocal marketplace.ContactNAI Geis RealtyGroup, Inc.+1 215 568 7222NAI Mertz+1 215 221 1100Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage IncomeMedianHousehold Income5,826,9705,821,4513,030,142$78,541$61,284Philadelphia transitioned from an industrial/manufacturingcity into a center of finance, insurance, telecommunications,biopharmaceuticals, aerospace, education and tourism. It ishome to cable giant Comcast. The largest private employerin the city is the University of Pennsylvania. Philadelphiacontinues to receive interest on a global basis as heavymanufacturing/high-tech/drug/alternative energy companiesseek labor, power, rail, port and economic incentives offered.2009 was a difficult year. Activity was consistently slowthroughout the year. Inventory for lease and sale is in strongsupply causing sale prices to slide approximately 15% andrental rates to be most competitive and creative.The Philadelphia industrial marketplace totals over 100 millionSF. The vacancy rate in 2009 increased almost 4% to approximately13%. Large land parcels are scarce throughoutthe Delaware Valley, but Philadelphia features large tractsin the Philadelphia Navy Yard and smaller parcels located incontrolled industrial parks. Industrial land prices range from$100,000 to $150,000 per acre. The Naval Yard wasdesignated a KOIZ adding 1,200 acres of industrially zonedland with port and rail facilities. The Naval Yard has approximately200 acres for sale or lease. KOIZs offer companiesspecial tax exemptions and abatements on their real estate,state and local taxes, as well as priority for state and localfinancing programs to locate within a designated KIOZthrough December 31, 2018.The Philadelphia County retail vacancy rate increased slightlyto approximately 12% in 2009. Strong convention andtourism business continues to stimulate the economy. Newrestaurants continue to open and the $550 million dollarSugar House Casino is under construction along theDelaware River. There is still strong redevelopment activityof existing retail shops and retail centers within the county.Pennsylvania Governor Ed Rendell has staked a largeinvestment in the state’s future on alternative energy with avery ambitious program aimed at attracting developers andmanufacturers of wind, solar and other energy technologies.This initiative has already attracted Spanish wind turbinemanufacturer Gamesa Corporación Tecnologica to thePhiladelphia region.Total PopulationMedian Age38Total PopulationMedian Age39Lancaster At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power CenterRegional Malls$$$$$$$$$$$$N/A12.007.5020.0016.0010.003.753.505.008.0011.0016.0022.00$$$$$$$$$$$$N/A15.0010.0024.0020.0012.004.254.008.5010.0014.0022.0028.00$$$$$$$$$$$$N/A13.508.7522.0018.0011.004.003.756.759.0012.5019.0025.00N/A21.0%3.0%N/A19.0%18.0%10.0%10.0%16.0%N/A15.0%8.0%8.0%DEVELOPMENT LAND Low/Acre High/AcreOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidential$$$$$N/A150,000.0085,000.0060,000.00150,000.0035,000.00$$$$$N/A300,000.00120,000.0080,000.00500,000.0065,000.00Philadelphia At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIAL$$$$$N/A20.0016.0025.0021.0015.00$$$$$N/A27.0019.0032.0028.0020.00N/A$ 24.00$ 18.00$ 27.00$ 24.00$ 16.00N/A13.4%13.1%20.0%16.0%15.0%Bulk WarehouseManufacturingHigh Tech/R&DRETAIL$$$1.502.004.50$$$3.753.957.50$$$2.752.956.0013.0%8.0%13.0%Downtown$ 18.00 $ 100.00 $ 26.00 11.0%Neighborhood Service CentersCommunity Power CenterRegional Malls$$15.0014.00N/A$$20.0038.00N/A$ 17.00$ 27.00N/A11.0%18.0%N/ADEVELOPMENT LAND Low/Acre High/AcreOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidential$$$N/A40,000.00100,000.0075,000.00N/AN/A$$$N/A400,000.00200,000.00175,000.00N/AN/A2010 Global Market Report ■ www.naiglobal.com 120

Pittsburgh, PennsylvaniaSchuylkill County, PennsylvaniaContactNAI Pittsburgh Commercial+1 412 321 4200Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage IncomeMedianHousehold IncomeTotal PopulationMedian Age2,323,1522,242,6961,202,050$62,683$46,95743Pittsburgh, through imaginative reinvention, has emergedfrom a post-industrial economy to a shining 21st centurycity. President Obama selected Pittsburgh for the site of the2009 G-20 Summit. Home to Carnegie Mellon University,The University of Pittsburgh and the University of PittsburghMedical Center, Pittsburgh continued to see economicgrowth in technology, medical science, robotics, financialindustries and now, due to the discovery of Marcellus Shalegas deposits, a leading energy center.The Office Market has a vacancy rate of 10.5% with positivenet absorption of 388,613 SF. In a major expansion of itsnuclear power engineering operations, WestinghouseElectric Company finalized a lease for a new, three-building,772,000 SF build-to-suit project. We forecast significantpositive net absorption through 2010 with availableoffice space trending downward. In particular; the OaklandSubmarket has pent-up demand for large blocks of Class Aspace. However, sites in the Oakland Market are difficult tosecure and the current lending environment is problematicfor developers.The Industrial Market has a vacancy rate of 9.5%, whichrepresents a positive net absorption of 388,064 SF. The Flexmarket recorded net absorption of negative 121,993 SF. Thelargest lease signing in 2009 included 20th Century Foxcommitting to a 330,000 SF lease. Industrial quoted ratesare steady at $4.99/SF and the average quoted rental ratefor Flex was $9.91/SF. The total industrial inventory in thePittsburgh Market amounted to 149,794,391 SF comprising3,920 buildings.The Retail Market vacancy rate is 7.2%. The largest leasesigning in 2009 included Lowe’s Home Improvement leasing124,000 SF. Despite the distressed retail in other U.S.markets, Pittsburgh has continued to see growth in thedevelopment of new lifestyle centers and retail projects.Pittsburgh’s investment market continues to see capitalizationrates in the single digits. Medical office and multi-familyhousing are the strongest sectors, while office and industrialcontinue to struggle.ContactNAI Keystone Commercial& Industrial, LLC+1 610 779 1400Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage IncomeMedianHousehold IncomeTotal PopulationMedian Age146,970146,14168,033$53,395$41,31042.4Located in the heart of anthracite coal country, SchuykillCounty is shaking off its coal roots to emerge as a service,technology and small business-based economy. SchuylkillCounty, with its rural character and a sparse population withinits 779-square-mile area, exemplifies an essential quality ofsmall town America: hard-working people doing their utmostto improve their quality of life. Now and again small packagesproduce big results. This is definitely true here.Investment continues in the 2,000 acre Highridge BusinessPark. Notable companies include the 1.2 million SF Lowes,1.4 million SF Big Lots, Office Max with 600,000 SF andWal-Mart with 900,000 SF of space. Wal-Mart now employs1,050 people in the area. Sara Lee recently opened a new182,000 SF frozen food distribution center. New companiesmoving into Schuykill include Electrolux with a modern455,000 SF plant and Gordon Food Service in a 150,000SF plant.Solar Innovations opened a new $8.1 million, 206,000SF Leed-Certified facility in the Pine Grove Business Park.Wegman’s is expanding its 570,000 SF distribution centerwith a $7 million, 350,000 SF temperature-controlled warehouse.The project will install alternative fuel cell distributiontechnology for fueling 150 material handling vehicles.In other Green news, Locust Ridge Wind Farm has nowgrown from 13 to 51 wind turbines that will generate 128megawatts of electricity.Pottsville anchors the medical system, professional buildingsand governmental offices and is also home to Yuengling,America's oldest brewery. The Pottsville/Schuykill TechnologyIncubator serves the area well and is one of many efforts toretain the younger demographic and promote new businessstarts in the area.Retail construction and leasing cooled off through 2009 withsites along the Route 61 Corridor in the highest demand.A new, $19 million Intermodal Center that will include athree-story office building is slated to open in Pottsville.The Schuylkill County Economic Development Office spearheadseconomic development activity and interacts with theSchuylkill Economic Development Corp (SEDCO), TamaquaIndustrial Development Enterprises (TIDE), and MahanoyArea Joint Industrial Corp (MAJIC). SEDCO manages 12industrial parks that represent more than $1.1 billion incapital investment in the last nine years.Pittsburgh At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power CenterRegional Malls$$$$$$$$$$$N/A19.0016.00N/A18.0014.002.752.5010.0018.0015.0017.0025.00$$$$$$$$$$N/A28.0019.00N/A24.0020.009.0013.0016.0036.0030.0025.00$40.00$$$$$$$$$N/A22.9116.23N/A21.0018.004.99N/AN/A26.3725.0019.6137.50N/A10.5%15.9%N/A11.5%10.70%9.5%N/AN/A7.6%7.7%7.9%7.5%DEVELOPMENT LAND Low/Acre High/AcreOffice in CBD$ 1,000,000.00 $ 4,000,000.00Land in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-park$$$100,000.0060,000.0075,000.00$$$500,000.00110,000.00500,000.00Retail/Commercial LandResidential$$100,000.0040,000.00$ 3,000,000.00$ 1,000,000.00Schuylkill County At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIAL$$$$$$15.509.008.0017.5016.5013.50$$$$$$18.0015.0012.0020.0017.5016.00$ 17.00$ 12.75$ 12.00$ 18.50$ 17.00$ 14.00N/A6.0%9.0%N/A10.0%9.5%Bulk WarehouseManufacturingHigh Tech/R&DRETAIL$$$2.752.754.75$$$4.254.257.50$$$3.253.255.507.0%6.5%8.0%DowntownNeighborhood Service CentersCommunity Power Center$$8.0014.00N/A$$12.5018.00N/A$ 10.00$ 15.75N/A9.0%7.0%N/ARegional Malls$ 17.00 $19.00 $ 18.00 6.5%DEVELOPMENT LAND Low/Acre High/AcreOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidential$$$$N/AN/A45,000.0035,000.00125,000.0015,000.00$$$$N/AN/A75,000.0060,000.00800,000.0030,000.002010 Global Market Report ■ www.naiglobal.com 121

Wilkes-Barre/Scranton/Hazleton, PennsylvaniaColumbia, South CarolinaContactNAI Mertz ofPennsylvania HQ+1 570 820 7700Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage Income546,576539,170302,837$54,450This area had been traditionally dominated by coal productionand heavy industry. However, the excellent highway systemthat runs through Northeastern Pennsylvania--Interstates 81,80, 84, 380, 180, and the Northeast Extension of thePennsylvania Turnpike--has transformed the region into theepicenter for major companies to locate mega-distributioncenters to service the Northeast and Mid-Atlantic populationcenters, as well as for backroom office operations.Throughout 2009, few companies were looking to expandand most were looking to consolidate operations. It is abuyer’s market without question. Rents have traditionallyfloated between the low- to mid-$4/SF price for newconstruction. Over the past year, developers have droppedthe starting rates of new buildings below $3/SF and under$2/SF on older product.Encouragingly, the market in the latter part of 2009 hasshown slight signs of improvement. There are companiesthat once again are looking to expand and or relocate to thearea, but with plenty of supply in the market, rents have notyet begun to stabilize. Today, speculative development isnon-existent. Companies prefer existing buildings that areoffering deals that represent a deep discount compared toground up development.The availability of tax incentives such as KOZ and LERTAthat offer significant savings, are helping to keep the areaattractive for relocations. The retail and office sectors areboth experiencing extended lease-up periods. Over the pastseveral years, intense development of retail projects andanemic office demand has been the norm, however officeleasing and construction continues in the health care sector.Downtown office resurgence, while weak, reflects the greenmentality brought on by the economy.Highlights in the market are the opening of a 460,000 SFdistribution center by Home Depot in Centerpoint, Pittston.Tootsie Roll opened a 240,000 SF facility in the HumboldtIndustrial Park. Benco Dentals will open a 198,000 SF facilityin Centerpoint and Common Wealth Medical College openedin Scranton.ContactNAI Avant, LLC+1 719 577 0044Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage Income742,896809,744382,376$60,570The Columbia economy is anchored by recession-resistantindustries. The State of South Carolina is the region’s largestemployer with nearly 25,000 employees. Fort Jackson andMcIntire Joint National Guard Base employ around 10,000people. Both gained additional employees as a result of thelast round of Base Realignment and Closure process. Theregion is also home to six universities that collectivelyemploy around 6,000 people. Columbia is also a regionalmedical center with three major hospital systems.Columbia has about 9.7 million SF of office space andhas experienced average annual absorption of 85,000 SF.Occupancy at mid-year was 83.4%. Landlords have heldrents steady over the last year but are providing additionaltenant improvement dollars and free rent as concessions. In2010, the completion of a 197,000 SF building in the CBDwill create three large spaces in Class A and B buildings,which tenants will use as leverage for additional concessionsas their leases renew.The retail market has 21.2 million SF. About 575,000 SFare absorbed annually on average. Rents in Class A retailcenters range from $16 to $22/SF. Occupancy fell marketwideby mid-year to 88.7% largely as a result of several “bigbox” national tenants closing stores.The industrial market has 33.8 million SF of space. Occupancyfell at year end to 93%. Rents have remained stablebecause there are a relatively small number of high qualitybuildings that meet current market requirements. Recentdevelopments include a 400,000 SF distribution center forHome Depot in the Lexington County Industrial Park. MillerValentine is building a 176,000 SF multi-tenant warehousenext door and Kirco recently completed an 186,000 SFbuilding in Northeast Richland.The number of significant transactions this year has beenlimited to lease renewals and purchases by end usersof office, retail, and industrial space. The largest transactionwas the purchase of an 80,000 SF office building forthe international headquarters of Pure Fishing in NortheastRichland.MedianHousehold Income$42,917MedianHousehold Income$52,443Total PopulationMedian Age42Total PopulationMedian Age37Wilkes-Barre/Scranton/Hazleton At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)$$N/A20.0010.00N/A$$N/A30.0018.00N/AN/A$ 25.00$ 12.00N/AN/A15.0%18.0%N/AClass A (Prime)$ 15.00 $ 20.00 $ 17.00 15.0%Class B (Secondary)INDUSTRIAL$ 14.00 $ 20.00 $ 16.00 12.7%Bulk WarehouseManufacturingHigh Tech/R&DRETAIL$$1.751.75N/A$$3.502.50N/A$$2.952.95N/A15.0%24.0%N/ADowntownNeighborhood Service CentersCommunity Power CenterRegional Malls$$$$8.005.0012.0015.00$$$$20.0024.0020.0033.00$ 14.00$ 13.00$ 15.00$ 23.0015.0%15.0%8.0%8.0%DEVELOPMENT LAND Low/Acre High/AcreOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidential$$$$$$7.0060,000.0035,000.0020,000.00100,000.0015,000.00$$$$$$17.00275,000.00120,000.00180,000.00800,000.00125,000.00Columbia At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power CenterRegional Malls$$$$$$$$$$N/A17.0014.00N/A17.0014.004.002.50N/A16.0012.0016.0025.00$$$$$$$$$$N/A20.0016.00N/A19.5016.504.503.50N/A18.0020.0030.0045.00$$$$$$$$$$N/A18.5015.00N/A18.2515.254.253.00N/A17.0016.0023.0035.00N/A9.8%16.9%N/A16.7%22.5%15.0%10.0%N/A14.0%11.5%9.1%13.4%DEVELOPMENT LAND Low/Acre High/AcreOffice in CBD$ 850,000.00 $ 3,000,000.00Land in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidential$$$$$120,000.0030,000.0025,000.00435,000.0010,000.00$$$$$350,000.0080,000.0040,000.00650,000.0030,000.002010 Global Market Report ■ www.naiglobal.com 122

Greenville/Spartanburg/Anderson Counties, South CarolinaSioux Falls, South DakotaContactNAI Earle Furman, LLC+1 864 232 9040Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage IncomeMedianHousehold Income284,347306,303148,606$51,519$48,179The Upstate area felt the national economic downturn thisyear but still retained a top-ranked business climate andaffordable cost of living, making it an attractive place to liveand work. The Upstate is among the fastest growing regionsin the nation and is continuously recognized as an appealingand well planned area with a bright future.The office market continues the upward trend in vacancy astenants downsize or sublease. Tenants in Class B and Cbuildings are relocating to Class A space for below standardrates. On a positive note, the local hospitals continue toabsorb general office space.Industrial market rates have decreased resulting from anincrease in vacancy. Sales and leasing volume have slowedwhile capitalization rates have increased. However, activityappears as though it may steadily increase as we approach2010. Retail vacancies have been up and rental rates aredown, but owners are offering attractive incentives. Thisyear, Academy Sports opened, Rooms To Go purchased asite at Magnolia Park and Easley Towne Center is under waywith leases from Wal-Mart, Bed Bath & Beyond and eight toten small retailers.Supply is still overpriced in the investment market due tomany owner/developers holding capitalization rates wherethey were a year ago, but available financing will not generaterequired returns for sideline investors. However, many of theastute owner/developers have increased capitalization ratesfrom as little as 50 basis points to as much as 150 basispoints over similar properties from a year ago, and theseproperties are trading today. An upscale 346-unit apartmentcomplex on Woodruff Road is set to begin leasing in 2010.The Hilton Garden Inn opened and a Courtyard Marriott isscheduled to open in 2010 in Downtown Greenville.In 2009, redi-Group announced it will locate its new NorthAmerican headquarters in Greenville. The company offersa wide range of services to automotive companies bothdomestically and internationally. In addition, Samsungannounced plans for its North American Customer CareCenter in the Centerpointe Business Park in Mauldin.ContactNAI Sioux Falls+1 605 357 7100Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage IncomeMedianHousehold Income253,027316,658146,380$62,615$55,934One of the fastest growing areas of the United States duringthe past decade, Sioux Falls’ strong metro territory hasbrought hundreds of businesses to the region. For the sixthconsecutive year, Forbes voted Sioux Falls first among UScities with populations of 50,000-177,000 as the best placefor business. Sioux Falls was also voted number eightfor 2009-2010 as one of the 60 US Hotspots for Young,Talented Workers for cities with a population of 100,000-200,000.The Sioux Falls office market inventory consists of approximately9,010,407 SF. Of that, 7,942,245 SF is occupied,resulting in a vacancy rate of 11.85%. The office vacancyrate has increased just over 1% compared to 2008statistics.Sioux Falls is said to be the largest retail option betweenMinneapolis and Denver. The Shoppes at Dawley Villageis a 70-acre retail development that includes Target. Plansfor more national retailers are in progress. The CBDis undergoing renovation and continues to add offices,restaurants and shops.The Sioux Falls industrial market felt the strain of thenational economy in 2009 as decision makers delayedany major decisions. Build-to-suit activity was off pace,(yet impressive), with several projects at various stagesof development. We are currently experiencing high demandand look for a strong year in 2010. To date, large tractdevelopment land sales have come to a virtual halt withthe change in the economic conditions and sizable level ofinventory. Prices for raw land appear to be trending downward.Many different styles of apartments are located throughoutthe area; from historic lofts in the CBD to newer complexeslocated in the outlying sections. The area's steadily growingpopulation has helped fuel the demand.Today, the community is experiencing growth and expansionin the technology, healthcare, retail, construction andresearch sectors. Greater Sioux Falls has not experiencedthe extreme lows of other markets, which has allowedinvestors to enjoy consistency and reasonable returnsbenefiting from its stability.Total PopulationMedian Age38Total PopulationMedian Age35Greenville/Spartanburg/Anderson Counties At A Glance(Rent/SF/PY) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power CenterRegional Malls$$$$$$$$$$$$$22.0018.5016.5019.0016.0013.502.253.004.5012.0010.0010.0030.00$$$$$$$$$$$$$25.0021.5018.5022.0018.0015.504.005.009.5026.0020.0030.0040.00$$$$$$$$$$$$$22.5019.0016.5019.5016.0014.503.134.007.0017.0015.0020.0035.005.0%10.0%17.0%10.0%10.0%15.0%11.4%13.0%15.5%9.0%8.0%12.0%2.0%DEVELOPMENT LAND Low/Acre High/AcreOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidential$$$$$N/A175,000.0036,000.0025,000.00200,000.0018,000.00$$$$$N/A350,000.0076,000.0045,000.00914,760.0045,000.00Sioux Falls At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power Center$$$$$$$$$$$$17.0012.009.0015.0014.009.003.504.006.009.0012.0011.00$$$$$$$$$$$$22.0016.0011.0020.0018.0014.004.505.508.0016.0020.0020.00$$$$$$$$$$$$19.5014.0010.0017.5016.0011.504.004.757.0012.5016.0015.50N/A10.5%12.7%N/A8.7%9.5%2.8%2.8%2.8%3.6%5.3%5.3%Regional Malls$ 10.00 $ 100.00 $ 25.00 5.3%DEVELOPMENT LAND Low/Acre High/AcreOffice in CBD$ 1,089,000.00 $ 1,481,040.00Land in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-park$$$186,872.4084,942.0065,340.00$$$365,000.00107,500.00324,800.00Retail/Commercial Land$ 152,460.00 $ 1,306,800.00Residential$ 15,000.00 $ 40,000.002010 Global Market Report ■ www.naiglobal.com 123

Chattanooga, TennesseeClarksville, TennesseeContactNAI Charter Real EstateCorporation+1 423 267 6549Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage IncomeMedianHousehold Income550,922642,126254,381$60,904$46,974Even though the national economy is suffering, Chattanoogacontinues to have good news and is looking forwardto 2010. Long noted as a great place to live, Chattanooganow is a great place to work because of the 775,000 SFVolkswagen assembly plant. When the cars roll out in 2011,the plant will deliver an immediate demand for 2,000 newemployees and up to 12,000 jobs created by tier-one andtier-two suppliers.This is the first time in recent memory that there is an amplesupply of quality buildings in the 100,000 to 250,000 SFrange. Once the tier-one and tier-two suppliers are announced,these buildings will be absorbed. Then Chattanoogawill have a shortage of industrial space that will spurbuild-to-suit and speculative industrial development. Withthe current vacancies, property owners and brokers areholding their breath until the suppliers are announced.The office market in the CBD remains stagnant even thoughBlue Cross Blue Shield of Tennessee relocated to its new950,000 SF corporate headquarters on the peripheral ofdowntown in Q1 of 2009. Blue Cross vacated almost400,000 SF in three different office buildings. Office rateshave remained flat and there have not been any major officeuser relocations. The Suburban market has two Class Aoffice parks competing for tenants, which makes ratesvery attractive. Of the almost 100,000 SF of vacancy,an estimated 60,000 SF has been absorbed in the last12 months.Retail development is lethargic with no new projectsannounced since late 2007. The Hamilton Place Mall arearemains the driver and premier retail location with NorthgateMall in the Hixson submarket as a strong second. Downtownactivity, especially in the North Shore market, is active.Chattanooga promotes sustainable growth and with VWpumping new life in the industrial sector this combinationwill create a healthy local economy. Downtown is alive andone example of this is the recent announcement of theMaclellan Building being converted to a boutique hotel bythe Indigo Group.ContactNAI Clarksville+1 931 648 4700Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage IncomeMedianHousehold Income302,924403,65588,736$55,492$46,280Clarksville is the fifth largest city in the state of Tennessee andthe 17th fastest growing city in the United States. The city ofClarksville, adjacent to Fort Campbell Military Base, enjoys anexpanding and diverse industrial base, a vibrant residentialmarket and is home to Austin Peay State University.Hemlock Semiconductor Corporation, one of the world’sleading suppliers of polycrystalline silicon products, iscurrently constructing a 1.5 billion dollar facility which willbecome operational in late 2012. Conwood Corporation,a subsidiary of R. J. Reynolds, recently purchased a onehundred ninety three acre site and will invest 130 milliondollars expanding their existing operation in Clarksville.Other corporate citizens with manufacturing facilities inClarksville include The Trane Company, Quebecor World,Jostens, Bridgestone Metalpha, Florim, US Zinc andthe Robert Bosch Corporation. A new 200 million dollarhospital facility was recently constructed and is operatedby Community Health System.Austin Peay State University is the fastest growing universityin the Tennessee Board of Regents system with enrollmentexceeding 10,000 students. APSU offers 57 majors allowingstudents to earn a bachelor’s, master’s or educationspecialist’s degree. In addition, the university boasts twoaccomplished Centers of Excellence and four Chairs ofExcellence.There is a good supply of new land available for retail, office,industrial and residential development. Land prices aretypically lower than those found in comparable markets.Currently there is a shortage of warehouse space primarilyresulting from the entrance of Hemlock Semiconductor andrelated suppliers into the market. Construction of retailspace has slowed due to the national economy. However,Clarksville enjoys a stable retail environment as evidencedby increased sales tax collections.CNN Money recently ranked Clarksville as the fourth bestmetro area to launch a business. Clarksville has also beenranked as one of the top 100 real estate markets and oneof the 20 best performing cities in the country’s 200 largestmetro areas.Total PopulationMedian Age39Total PopulationMedian Age32Chattanooga At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power CenterRegional Malls$$$$$$$$$$$$N/A17.0012.0018.0018.0012.002.252.406.0010.0012.0020.0021.00$$$$$$$$$$$$N/A22.0016.0022.0020.0016.003.253.5010.0023.0020.0030.0050.00$$$$$$$$$$$$N/A19.0014.0020.0019.0014.002.502.807.0018.0018.0024.0037.00N/A7.0%12.0%10.0%10.0%15.0%12.0%5.0%5.0%5.0%10.0%10.0%10.0%DEVELOPMENT LAND Low/Acre High/AcreOffice in CBD$ 650,000.00 $ 1,200,000.00Land in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-park$$$125,000.0065,000.00100,000.00$$$250,000.00125,000.00300,000.00Retail/Commercial Land$ 200,000.00 $ 1,500,000.00Residential$ 60,000.00 $ 125,000.00Clarksville At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power CenterRegional Malls$$$$$$$$$$$$15.0014.008.0018.0015.0010.002.503.00N/A10.0014.0015.0020.00$$$$$$$$$$$$19.0015.0010.0022.0018.0012.004.005.00N/A14.0017.0019.0030.00$$$$$$$$$$$$17.0014.509.0020.0016.5011.003.254.00N/A12.0015.5017.0025.005.0%12.0%5.0%10.0%8.0%12.0%3.0%5.0%N/A8.0%12.0%5.0%10.0%DEVELOPMENT LAND Low/Acre High/AcreOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidential$$$$$8.003.00N/A1.008.000.60$$$$$20.008.00N/A4.0015.001.502010 Global Market Report ■ www.naiglobal.com 124

Knoxville, TennesseeMemphis, TennesseeContactNAI Knoxville+1 865 777 3030Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage IncomeMedianHousehold Income706,862770,531387,679$58,049$47,048Knoxville’s economy, unanchored by any single industry, hasseen a downturn in 2009. A number of major employershave been impacted by the economy and this is reflected incommercial real estate. Businesses are reluctant to makereal estate commitments despite the fact that prices havebeen adjusted downward.Office transactions have seen shorter term commitmentsby tenants and lower rates, both for new leases and forrenewals. Despite the Brookview Center leasing 30,000 SFto the largest law firm in the state and 58,000 SF to amedical staffing company and The Scripps Network doublingthe size of its corporate headquarters, vacancies are up andreturns to owners are dropping as rental rates fall. Industrialactivity has been very slow. Closings and layoffs haveoccurred such as the closure of America’s largest magazinedistributor, which cost 400 jobs.Some expansions have begun including Green MountainCoffee’s new packaging plant and a furniture maker openingin Morristown to supply IKEA. Meleleuca and Exedy AmericaCorporation began expansions that will add 540 jobs to themarketplace.Retail has suffered with vacancies in all geographic areas.Chain restaurants in particular have been right-sizingby closing units. One significant transaction that took placewas the lease signing by big box retailers, although active inmarket and site analysis, are waiting to see if more bargainscan be had. Two large developments Dumplin Creek inSevier County and the Sherrill tract in Knox County havefallen victim to more aggressive negotiating and delays asdevelopers nationwide complete for the tenants. The onlymultifamily or hospitality development has been the continuationof projects under way in 2008. Vacancies in allsegments are hovering around 10%.A major auto parts manufacturer closed a new plant inKnoxville as did an international electronics manufacturer,creating almost 700,000 SF of vacancy. A major officeemployer that manufactured molded plastic signs, largelyfor the auto industry, closed, as did a lower price point retailclothing chain headquartered here.ContactNAI Saig Company+1 901 526 3100Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage IncomeMedianHousehold Income1,286,1511,301,835679,256$63,599$52,090Memphis only delivered two large speculative office productsthis year, preventing a glut of space from being placedon a slow market. Industrial real estate development hasslowed as some larger vacancies have hit key submarketsbut leasing activity has been strong. Retail developmentstopped mid-year and rental rates have declined. Memphisoffice vacancy rates rose slightly to 12.6% due to negativeyear-to-date absorption of 26,174 SF.The slow down in the market has kept pace with the downturnin the economy, resulting in only two large, speculativeproperties, Boyle Investment Co.’s recently completed150,000 SF office building and Highwoods Properties150,000 SF Triad Centre III, coming on the market. UTMedical Group, Inc. had the largest lease of the year with85,651 SF at Mid Memphis Tower.Much of the leasing activity in Memphis has been renewalsand expansions, with a few companies taking advantage ofthe depressed market to change properties. Lease rates forthe overall office market remained fairly steady at$16.84/SF with the largest submarket, East Memphis, at1.5 million SF, seeing a Q3 increase to $19.41/SF.With Kuehne+Nagel, Inc. taking its 865,120 SF of subleasespace off the market and Conwood Co. LLC purchasing a787,500 SF building in Southeast Memphis, the amount oflarge warehouse space has decreased. Direct vacancyoverall, remained steady at 13.8%, the same as Q1 2008.Memphis experienced 195,855 SF of positive absorptionand lease rates dipped slightly to $2.62/SF. Several nationalcompanies looking for large blocks of space could edgelease rates upward next year.Retail vacancy tightened to 8.9% in Q3 2009 compared to10% in Q3 2008. Several national big box retailers closedMemphis-area stores, but that space was backfilled fairlyquickly by more robust companies.Memphis saw a drop in average asking rental rates, downto $10.98/SF. The Memphis office market is not overbuilt,allowing vacancy to drop as the economy improves andcompanies expand. The market could see speculativeindustrial development as soon as late 2010, most likely inthe DeSoto County submarket.Total PopulationMedian Age39Total PopulationMedian Age35Knoxville At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power CenterRegional Malls$$$$$$$$$$$$N/A16.0012.0019.0018.0012.002.002.254.7512.009.0012.0028.00$$$$$$$$$$$N/A17.5016.0022.0022.0017.004.004.2515.0021.0020.0026.00N/A$$$$$$$$$$$N/A16.7513.2520.5020.0015.003.253.409.0015.0016.5017.00N/AN/A14.4%16.0%24.0%16.3%19.4%12.0%14.0%6.0%11.0%9.2%8.0%N/ADEVELOPMENT LAND Low/Acre High/AcreOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-park$$$$150,000.00175,000.0020,000.0030,000.00$$$$300,000.00350,000.0085,000.00300,000.00Retail/Commercial LandResidential$ 250,000.00N/A$ 1,100,000.00N/AMemphis At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)/Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power CenterRegional Malls$$$$$$$$N/A15.0010.00N/A11.295.001.00N/A1.001.008.00N/AN/A$$$$$$$$N/A22.5017.50N/A29.0024.004.05N/A19.8022.0025.00N/AN/A$$$$$$$$$N/A18.7513.75N/A20.1514.502.55N/A10.4011.5016.508.00N/AN/A16.5%32.4%N/A19.6%30.9%N/AN/AN/A32.8%16.4%24.7%N/ADEVELOPMENT LAND Low/Acre High/AcreOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidential$$$$$N/A261,300.0078,000.005,000.00211,111.0022,000.00$$$$$N/A700,000.00152,460.00174,240.00217,800.0076,500.002010 Global Market Report ■ www.naiglobal.com 125

Nashville, TennesseeAustin, TexasContactNAI Nashville+1 615 850 2700Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage IncomeMedianHousehold Income1,649,3811,967,166842,148$69,054$55,965The cost of living in the Nashville region is 10% below thenational average due to the lower costs of housing, transportation,utilities and many tax benefits, including no stateincome tax. As a result of these economic opportunities,Nashville continues to dominate many prominent lists.Business Facilities ranked the Nashville Metro number onefor Quality of Life, number six for Best Cost of Living, andnumber nine for Economic Growth Potential while POLICOMranked Nashville number five for Economic Strength.Vacancy rates rose during 2009 for the office, industrial andretail markets and should begin to stabilize by mid 2010.During the course of the year, 2.7 million SF of product wasadded to the market, which further increased the vacancyfor all sectors. Another factor in the increased vacancy isthat sublease space has risen over the course of the yearwith more than 2 million SF of space on the market. Theoffice market has witnessed some moderate gains duringthe year while industrial is still trying to recover.Retail vacancy has risen but has little sublease spaceavailable. Over the past five years, the Nashville MSA wasa landlords’ market with minimal concessions given totenants. To keep occupancies up, landlords have giventenants more concessions such as free rent and additionalTI allowance to compensate for the increase in availablenew space and sublease space they are competing against.This trend will remain in favor of the tenants until newproduct and sublease space is absorbed and the number ofchoices for tenants decreases.Notable leases in 2009 include: Nissan’s 717,000 SF leaseat Couchville Pike II; Genco’s 319,375 SF lease at 3815Logistics Way; Synnex Corporation’s 307,200 SF lease at I-24 Distribution Center 2 and Simplex Healthcare’s 91,253SF lease at Cool Springs IV.With continued fears of an unstable economy, Nashville’scommercial real estate sectors will remain shallow throughthe first half of 2010. However, Nashville is in a good positionto withstand the downturn and rebound more quickly thanother markets in the US because it supports a wider arrayof industries.ContactNAI Austin+1 512 346 5180Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage IncomeMedianHousehold Income1,762,9152,180,846832,927$76,318$64,972Austin, the state capital of Texas, is ranked at the top of severalnational metro comparison studies, including Best City forRecession Recovery (Forbes, June 2009), Third StrongestMetro Economy in the Nation (Brookings Institution,June 2009), and the Nation’s Best City For A Fresh Start(Relocation.com, June 2009).While news is good for economic development in Austin withonly 7.2% unemployment, it has become a hindrance tocommercial property transactions by widening the bid-askgap. Sellers lock in on good news and try to wait out therecession for a higher price, while buyers hold out forcheaper deals. The lack of adequate financing remains amajor obstacle requiring buyers to pool equity to close allcash deals.The office market failed to absorb 600,000 SF in the firsthalf of 2009. Luckily almost 300,000 SF of mostly Class Aspace was absorbed in Q3. Landlords work hard to keepexisting tenants and make attractive deals through rentconcessions. The average rental rate at the end of Q3 was$25.52/SF per year.Austin’s industrial leasing inventory grew from 34.5 millionSF in 2007 to 37.9 million SF by mid-2009. A total of3.4 million SF was added in an 18-month period. Thisrepresents an increase of 10% of gross inventory. As aresult, no institutional grade product is under construction inthe Austin area and rents continue to erode.During 2009, 618,940 SF of retail was delivered, while only278,130 SF was absorbed. This resulted in average rentalrates decreasing by $2.81/SF from December of 2008 toJune of 2009.Development for the most part has come to a grinding haltacross all product types. There is a wait and see attitudeamong developers and investors. The lack of adequatefinancing has been a major obstacle, so buyers are poolingequity to close all-cash deals.Total PopulationMedian Age37Total PopulationMedian Age33Nashville At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service Centers$$$$$$$$$$$28.0017.5014.0023.7517.0013.002.753.255.0012.008.75$$$$$$$$$$$31.0026.5018.5028.0029.0023.504.755.009.5032.0033.00$$$$$$$$$$$29.5022.0016.2525.8823.0018.253.754.137.2522.0020.8852.0%13.3%14.3%51.0%9.0%11.0%20.2%16.1%4.4%15.8%7.2%Sub Regional CentersRegional Malls$24.00N/A$28.00N/A$ 26.00N/A6.0%N/ADEVELOPMENT LAND Low/Acre High/AcreOffice in CBD$ 35.00 $ 70.00Land in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidential$$$$$125,000.0040,000.0040,000.00150,000.006,000.00$$$$$750,000.00125,000.00125,000.00800,000.00800,000.00Austin At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersSub Regional Centers$$N/A$$$$$$$$N/A45.6234.0033.0828.003.004.206.0014.0010.0015.00$$$$$$$$$$N/A26.3021.14N/A19.5016.575.407.2010.2041.0032.0030.00$$$$$$$$$$N/A35.9627.57N/A26.2922.294.205.708.1027.5021.0022.00N/A15.1%8.8%N/A21.4%22.1%20.0%20.0%20.0%4.0%16.0%10.0%Regional Malls$22.00 $ 45.00 $ 33.50 5.0%DEVELOPMENT LAND Low/Acre High/AcreOffice in CBD$ 15.00 $ 25.00Land in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidential$$$$$175,000.0075,000.0087,000.00218,000.0010,000.00$$$$$325,000.00150,000.00218,000.00523,000.0040,000.002010 Global Market Report ■ www.naiglobal.com 126

Beaumont, TexasCorpus Christi, TexasContactNAI Fidelis+1 409 899 3300Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage IncomeMedianHousehold IncomeTotal PopulationMedian Age370,113355,016174,485$57,364$44,66437Southeast Texas is in the midst of an industrial expansiontotaling an estimated $15 billion in the petro chemicalindustry. The industrial and multifamily sectors have benefitedmost from this expansion. Retail space is flat. Office spacehas not benefited as vacancy continues to climb. Land isnot moving well due to financing issues. Investment propertycontinues to do well but has also slowed. The medical officemarket is doing well as SETX's medical community continuesto grow.In 2009, there was an increase in new hotels and apartmentcomplexes built to house workers from the expansion ofseveral industrial plants. However, this has slowed withsome projects pulling back toward the close of the year. Weexpect a drastic increase in the number of construction jobsduring Q1 2010 as things ramp back up on the almost$8 billion Motiva project.The retail markets are flat as sales have dropped, but manyof the bargain retailers have positioned themselves forexpansion in 2010. Port Arthur is still hot for retail growthwhile Beaumont and Orange are slow, with Beaumonthaving significant vacant space and others having gone darkaltogether.The industrial market benefited from industrial expansionand, unfortunately, from recent hurricanes that destroyedolder inventory. This has brought some speculative buildingto the market. Cardinal Drive in Beaumont and South are thehottest areas for this market. Land deals have dried up aslenders are requiring upwards of 50% down. Once those ratesreturn to more realistic numbers, activity undoubtedly will pickup. Despite this situation, prices have remained stable.The office market remains flat. Some of this can be attributedto larger users downsizing and subleasing space availableat lower rates than what landlords are offering. Jobs havenot been created in this area of the market and new jobgrowth is not predicted in the near future. Some office usersare moving into retail centers, thus having a further negativeimpact on the market.Larger deals in 2009 included the HydroTex industrial buildto suit as well as several retail lease transactions. Manylarge transactions never closed due to lending difficulties.Leasing activity has picked up based on the lending climateand we suspect it will continue until lenders resume loaningmoney again.ContactNAI Cravey Real EstateServices, Inc.+1 361 289 5168Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage IncomeMedianHousehold IncomeTotal PopulationMedian Age410,741402,092189,098$57,608$45,52735The Corpus Christi economy suffered slightly from theeconomic downturn. The petrochemical industry is down,resulting in a decline in the local economy. However, therefineries and related industries are expanding and upgradingin anticipation of the pending increase in oil and gasexploration. The Port of Corpus Christi is doubling in size tomeet future demand.The office market continues to lag behind the rest of thereal estate market. Numerous national and regionalcompanies have closed their offices and/or are downsizing.Office rents in Class A buildings have dropped enough tocause tenants from Class B and C buildings to considermoving up. It is anticipated that occupancies in Class Abuildings will remain the same while B and C will suffer fromthis migration.The industrial market is down as a result of the decline in thepetrochemical industry. Exploration and refining have slowedsignificantly over the last year and as a result, many servicetype buildings with yards came on the market. Large warehousebuildings are remaining vacant, especially the olderdock high buildings.Freestanding retail and strip centers are doing well. Largebuildings have been filled with only two, large, vacantbuildings remaining on the market; the former Mervyn’s andthe space next to Academy. Steinmart is filling the formerCircuit City location and Hobby Lobby is expanding in MoorePlaza, the city’s power center. The old Parkdale Plaza isfinally being torn down and replaced with a Super Wal-Mart,a small shadow center and some pad sites. The redevelopmentof LaPalmera Mall (formerly Padre Staples Mall) isunder way at a cost of roughly $50 million. Every part of themall is being upgraded, including the anchor tenants. Theonly negative in the retail market was the foreclosure ofSunrise Mall.The future of Corpus Christi looks bright thanks to expansionat the port and the anticipation of the $3 billion dollar LasBrisas Power Plant and $1 billion dollar Chinese pipe plant.Beaumont At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersSub Regional CentersRegional Malls$$$$$$$$$$N/A10.008.00N/A12.008.002.164.807.80N/A6.5014.0012.00$$$$$$$$$$N/A12.0011.00N/A15.0012.003.007.0010.00N/A12.0022.0018.00$$$$$$$$$$N/A11.009.50N/A13.5010.002.406.309.00N/A10.0018.5014.00N/A14.0%15.0%N/A10.0%12.0%15.0%6.0%5.0%N/A10.0%12.0%6.0%DEVELOPMENT LAND Low/Acre High/AcreOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidential$$$$N/A196,000.0032,670.0034,000.00130,680.00N/A$$$$N/A348,480.00108,900.0043,560.00700,000.00N/ACorpus Christi At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)$$N/A17.009.00N/AN/A$22.00$14.00N/AN/A$ 19.50$ 11.50N/AN/A17.0%29.0%N/AClass A (Prime)Class B (Secondary)INDUSTRIAL$$13.009.00$$22.0013.00$ 17.50$ 11.0013.0%14.0%Bulk WarehouseManufacturingHigh Tech/R&DRETAILDowntown$$$3.60N/A6.006.00$$$6.00N/A12.0011.00$$$4.80N/A9.008.504.0%N/A6.0%60.0%Neighborhood Service CentersSub Regional CentersRegional Malls$$$10.009.009.75$$$28.0028.0028.00$ 19.00$ 18.50$ 18.8814.0%12.0%52.0%DEVELOPMENT LAND Low/Acre High/AcreOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidential$$$$$$348,480.0076,230.0076,230.0015,000.00196,020.0015,000.00$$$$$$522,720.00196,000.00196,000.00108,900.00784,080.0035,000.002010 Global Market Report ■ www.naiglobal.com 127

Dallas, TexasEl Paso, TexasContactNAI Robert Lynn+1 214 256 7100Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulation6,409,3787,061,3953,182,487The Dallas area continues to outpace much of the countrydue to its central location and proximity to DFW Airport, oneof the busiest transportation hubs in the world. Theeconomic conditions of 2009 resulted in companies, bothlarge and small, choosing short term renewals over makinglong term decisions.Dallas has an abundance of land and an extremely competitivecommercial development market. This has helped keepreal estate lease rates competitive and makes Dallas afavorite spot for corporate headquarter relocations. Evenin these trying times, the horizon looks bright as economicindicators point to an optimistic forecast for 2010 withemployment gains projected to continue to increase. TheDallas/Ft. Worth area currently leads the nation in employmentgains for 2009 and the positive numbers are reflectedin what appears to be a healthy office market.There were 91,000 net new jobs added to the North Texaseconomy according to the US Bureau of Labor Statistics.Office absorption for the same area totaled a negative40,621 SF. Overall vacancy remains flat from a year ago at17.2%. The largest lease signings of 2009 included the203,239 SF lease signed by AT&T at Lakeside Centre in thePlano/Richardson market and the 201,354 SF deal signedby Oncore at the Oncore Building in the Ft. Worth market.The Dallas industrial market stands at about 12% vacancy.There is heavy competition for every tenant pushing rentalrates down while also increasing move-in incentives.Absorption rates are in the negative territory for the first timein quite some time.Currently, the retail market in the Dallas/Ft. Worth area hasa 9.4% vacancy rate and a retail rental rate of $13.37/SF.Net absorption has been in excess of 1 million SF and theaverage rental rate has increased 0.8%. In all, 21 buildingswere delivered totaling just over 300,000 SF. Capitalizationrates have averaged 7.9%.ContactNAI El Paso+1 915 859 3017Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulation729,085715,271287,353Bright spots in the El Paso market are highlighted by thenew Texas Tech School of Medicine, the University of Texasat El Paso, continued downtown revitalization and explosivegrowth at Ft. Bliss. However, the commercial real estatemarket remains sluggish. Regional manufacturing is down,warehouse has softened and office and retail are flat.Rents and occupancies in the suburban office marketsremained flat through 2009 with little change forecast for2010. Despite slow leasing, revitalization efforts continue inthe CBD, where a local REIT and Mills Plaza Properties arere-developing over 700,000 SF of office properties. Theindustrial market, now mostly distribution and logistic space,has softened. There has been no new construction as rentscontinue to lag behind the rising construction cost. FoxConnopened its new facility in Mexico at the Santa Teresa crossing,occupying an initial 1 million SF in Phase I. Vendors arebeing drawn to the area.The retail market was generally flat in 2009 and no changeis expected. The El Paso market experienced slow to nogrowth in existing strip centers with shell space, “big box”retailers remained non-committal and local and chainrestaurant operators encountered tighter financing. However,some existing retailers in the marketplace, such as Kohl’s,Furniture Warehouse and Forever 21, have taken advantageof the economic environment to strike deals on vacant spacefor additional stores. Development and pre-leasing activitycontinues for the 300,000 SF Phase I of the Fountains, a55-acre power center on I-10. Multifamily has benefitedwith the growth of Ft. Bliss. Occupancy exceeds 93% andrents are generally between $.72 and $.82/SF per month.Despite the economic downturn, the El Paso businessclimate remains favorable. A positive turn in the global economywould energize manufacturing in Mexico and stimulatewarehouse occupancy in El Paso. Ft. Bliss, the new TexasTech school of Medicine, and UTEP, are expected to continueto be local growth generators.HouseholdAverage Income$75,624HouseholdAverage Income$50,351MedianHousehold Income$63,251MedianHousehold Income$39,962Total PopulationMedian Age34Total PopulationMedian Age31Dallas At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)N/A N/A N/A N/AClass A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIAL$$$$$14.9510.2521.0014.0011.00$$$$$32.0020.0035.0045.0027.00$ 17.20$ 14.70$ 25.00$ 24.30$ 17.2629.0%47.0%90.0%16.0%26.1%Bulk WarehouseManufacturingHigh Tech/R&DRETAIL$$$1.501.754.50$$$3.906.0012.00$$$2.903.506.7512.0%12.0%12.0%DowntownNeighborhood Service CentersSub Regional CentersRegional Malls$$$$8.006.0012.0030.00$$$$25.0060.0030.0060.00$ 17.55$ 13.37$ 17.47$ 23.771.9%9.2%13.2%9.2%DEVELOPMENT LAND Low/Acre High/AcreOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidential$$N/AN/A65,000.0060,000.00N/AN/A$$N/AN/A196,000.00350,000.00N/AN/AEl Paso At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power CenterRegional Malls$$$$$$$$$$$N/A18.0014.0021.5016.0014.002.803.204.5010.0010.004.50N/A$$$$$$$$$$$N/A25.0018.0025.0020.0016.003.854.507.0020.0018.0017.00N/A$$$$$$$$$$$N/A19.0016.0023.0017.0015.003.503.705.1016.5013.5011.00N/AN/A40.0%50.0%10.0%10.0%25.0%13.0%18.0%13.0%10.0%12.0%6.0%N/ADEVELOPMENT LAND Low/Acre High/AcreOffice in CBD$ 1,306,800.00 $ 1,742,400.00Land in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidential$$$$$217,800.0087,120.00108,900.00261,360.0020,000.00$$$$$435,600.00130,680.00435,600.00871,200.0060,000.002010 Global Market Report ■ www.naiglobal.com 128

Fort Worth, TexasHouston, TexasContactNAI Huff Partners+1 817 877 4433Metropolitan AreaEconomic Overview2008Population2013 EstimatedPopulationEmploymentPopulationHouseholdAverage IncomeMedianHousehold Income6,409,3787,061,3953,182,487$75,624$63,251Fort Worth is projected to post positive job growth onceagain despite a three point rise in the unemployment ratefrom this time last year. The current rate is 8.3%, still wellbelow the national average. The Barnett Shale gas play hasslowed by some 60% from last year as prices have droppedand other natural gas deposits have been discovered indifferent parts of the US.Fort Worth continues to experience effects of a tight officemarket due to the strong local economy. The Fort Worth CBDcurrently has a 6% vacancy rate in Class A office and a 15%vacancy rate in Class B office. Although healthy, Fort Worthis not completely immune to what is happening in themarket throughout the US. Within the first three quarters of2009, over 1 million SF of sublease space hit the market inthe CBD.Fort Worth’s retail market proved to be somewhat stable.With approximately 4.5 million SF of new constructiondelivered in the past 18 months, direct deal velocity definitelycame to a staggering halt. Existing tenants and landlords,however, have symbiotically created renewal and reworkstructures for tenants to remain in those properties. The FortWorth retail market is seeing about a 91% occupancy levelversus the 94% witnessed in Q4 2008. The average rentalrate of $13.71 is down from the 2008 annual average of$14.50. The theme for 2009 has been tenants want to stayand landlords need them to stay, resulting in one of thelowest sublet vacancy rates of all time, currently below 1%.Tenants have taken advantage of reworking their leases,obtaining lower rates to help offset a decline in their salesrevenue in 2009.The industrial market shows negative absorption for thefirst time in years. The overall vacancy rate for all producttypes is up four points to 12.31%. No new development atthis time. Rates have dropped and many incentives areavailable allowing credit tenants to name their price. Thebid/ask price ratio for sales still remains skewed. Industrialis still out pacing all other product types. Cautious optimismfor growth and stabilization of the market place is projectedfor 2010. Industrial is still outspacing all other product types.Cautious optimism for growth and stabilization of the marketplace is projected for 2010.ContactNAI Houston+1 713 629 0500Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage IncomeMedianHousehold Income5,788,3306,183,6392,746,271$76,301$58,581Houston’s economy is based on energy, but to a lesserextent than in past several years. Its diverse economyis composed of research firms, medical and biomedicaltechnology, telecommunications, agriculture and otherdistinct businesses. The emphasis on international trade isexpanding and is a prominent theme in the city’s continuedeconomic development. Houston’s business appeal isenhanced by it being one of the least expensive major UScities in which to conduct business.Houston’s office vacancy rate across all classes was14.2% in mid-2009 and a low 8.1% in the CBD. A totalof 15 buildings delivered to the market totaling 1,141,455SF, with 3,829,489 SF still under construction. The largestlease signings in 2009 included the 844,763 SF leasesigned by Hess at Hess Tower, the 160,000 SF deal signedby Locke Lord Bissell & Liddell, LLP at Chase Tower, anda 232,962 SF lease signed by NRG Texas at HoustonPavilions, each in Houston’s CBD.Houston’s industrial market has remained stable with anoverall vacancy rate of 6.9% and average asking rental ratesof $5.70/SF per year. The largest lease signings in 2009included the 300,000 SF lease signed by Ozburn-HesseyLogistics at Bayport North, the 234,000 SF lease signed byTramontina-USA Inc. at 1641 Gillingham, and the 224,511SF lease signed by United DC at Eastport Four.Houston’s retail market has experienced a decrease invacancy to 9.2% overall. The average quoted asking rentalrate is $15.15/SF, which represents a 1.9% decrease overthe past year. Average sales prices have risen over the pastseveral years. Retail properties sold for $171/SF over thepast 12 months, compared with $147/SF in the previousperiod.Long recognized as the energy capital of the world, withevery major energy company represented locally, Houston isranked second among US cities with the most Fortune 500headquarters.Total PopulationMedian Age34Total PopulationMedian Age34Fort Worth At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersSub Regional CentersRegional Malls$$$$$$$$$$$$N/A24.0018.0024.5019.0014.002.752.505.0014.004.994.0015.63$$$$$$$$$$$$N/A29.0023.0024.5023.0021.003.303.5012.0038.0030.0030.0020.00$$$$$$$$$$$$N/A26.0020.0024.5021.0018.003.033.008.5019.4712.8611.9516.04N/A6.0%15.0%57.0%12.0%16.0%10.8%17.0%9.1%2.0%13.0%14.0%11.0%DEVELOPMENT LAND Low/Acre High/AcreOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidential50.00220,000.0060,000.0055,000.00125,000.00N/A70.00675,000.00115,000.00110,000.00320,000.00N/AHouston At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIAL$$$$$$44.5019.2514.0016.5013.0015.75$$$$$$51.0045.0032.1638.2540.5538.00$ 46.98$ 34.66$ 23.61$ 28.10$ 27.47$ 28.2647.0%7.0%13.0%54.5%16.0%13.0%Bulk WarehouseManufacturingHigh Tech/R&DRETAIL$$$4.084.003.00$7.14$7.80$33.00$$$5.315.175.387.0%3.0%6.0%DowntownNeighborhood Service CentersCommunity Power CenterRegional Malls$$$$12.005.4815.196.88$$$$50.0030.0254.0035.50$ 37.71$ 14.82$ 15.58$ 14.998.0%12.9%12.0%7.0%DEVELOPMENT LAND Low/Acre High/AcreOffice in CBDLand in Office ParksLand in Industrial Parks$$$185,130.005,499.005,000.00$$$217,800.00239,578.00176,000.00Office/Industrial Land - Non-parkRetail/Commercial LandResidential$$$6,875.002,501.0021,780.00$ 6,098,400.00$ 6,098,400.00$ 1,219,680.00129 2010 Global Market Report ■ www.naiglobal.com 129

RIO GRANDE VALLEY, TexasContactNAI Rio Grande Valley+1 956 994 8900Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage IncomeMedianHousehold Income1,196,0011,237,256690,000$43,395$31,110(Brownsvile, Harlingen,McAllen, Edinburg,and Mission.)With a dynamic young labor force, strategic bi-nationallocation, low cost of living and development opportunities,the Rio South Texas region is an ideal location for globalcompanies looking to expand or relocate. The convergenceof two nations into one region with many choices is the focalpoint of a new marketing strategy.While commercial real estate activity is down overall in theRio Grande Valley as compared to previous years, the marketcontinues to be one of the strongest in the nation through Q22009 according to the MetroMonitor report by BrookingsInstitution. Despite a slight decline in retail sales, big boxretailers are still entering the market. In 2009 McAllen’s thirdBest Buy opened and Buffalo Wild Wings is under constructionwith its second location. CVS entered the Rio Grande Valleymarket in Q1 opening several locations throughout theValley. Ashley Furniture opened its first McAllen store andRooms-To-Go and Pappadeaux Seafood Kitchen are bothunder construction in McAllen and Pharr, respectively withQ2 2010 projected openings. Kohl’s, Bed Bath & Beyond,Forever 21, Shoe Carnival and one additional Walgreenshave entered Brownsville.The office market is dominated by healthcare and governmentagencies with few leases or sales below 5,000 SF.Doctors Hospital at Renaissance has recently opened amajor addition, which includes a new Medical Tower withan expanded Emergency Department, a new PediatricIntensive Care Unit and Pediatric Oncology Services. 495Commerce Center became home to its second GSA building(four-story, 150,000 SF) which opened in Q1 2009.With the opening of the newest international bridge inJanuary 2010, the industrial market will regain momentum.The presence of maquiladoras provides considerableadvantages to the economic environment along the borderby increasing trade, generating employment and acquiringlocal resources; all important stimuli to the economy in theSouth Texas area.San Antonio, TexasContactNAI REOC Partners, Ltd.+1 210 524 4000Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage IncomeMedianHousehold Income2,087,3852,325,643904,793$61,347$52,086South Texas has been less affected by the recession thanmany other areas, but national pressures have moved intoSan Antonio, the seventh largest city in the US. Still, the AlamoCity has been identified as one of the top cities (BrookingsInstitution) and one of the most recession-resistant (Forbes)in the country.New construction and investment activity slowed significantlyin 2009. The office market added less than 300,000SF compared to more than 1.4 million constructed in 2008.Only one major warehouse facility with 275,000 SF wascompleted and retail development was limited to less than1 million SF compared to 3.5 million SF added in 2008.Still, the market maintained some enviable positive momentumwith the addition of several notable relocations. In theindustrial arena, Toyota Motor Corporation announced thatproduction of the Tacoma pick-up truck would be relocatedfrom Freemont, California, to the San Antonio plant startingin 2010 creating 850 new jobs. In the satellite communityof Seguin, construction is under way on Caterpillar Inc’s1 million SF, $170 million engine assembly plant, which isexpected to create more than 1,400 new jobs.In the office market, Medtronic, Inc. selected San Antoniofor its new Diabetes Therapy Management and EducationCenter, which filled the Overlook at the Rim (145,000 SF)property. Citing San Antonio’s affordable office costs,ample workforce and inland location away from the threat ofdamaging hurricanes, Whataburger Restaurants LP relocatedto 300 Concord Plaza (141,000 SF) after petroleum refinerTesoro Companies expanded into its new 618,000 SFheadquarters facility at Ridgewood Park.Looking ahead, IHS Global Insight predicted that San Antoniowill be one of the first cities to lead the way out of therecession and regain the pre-recession job levels in 2010.Commercial real estate is expected to trail that recovery pathwith improvement anticipated in 2011.Total PopulationMedian Age27.9Total PopulationMedian Age34McAllen-Mission At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power Center$$$$$$$$$$$$12.0012.008.0012.0010.008.003.304.255.0010.0012.0015.00$$$$$$$$$$$$25.0025.0015.0036.0021.0016.007.8011.008.0021.0022.0032.00$$$$$$$$$$$$24.5024.5015.5030.0020.5016.007.209.759.0020.5023.0031.0070.0%70.0%20.0%15.0%25.0%12.0%15.0%6.0%10.0%15.0%12.0%15.0%Regional Malls$ 30.00 $ 100.00 $ 80.00 4.0%DEVELOPMENT LAND Low/Acre High/AcreOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidential$$$$$N/A174,000.0054,000.0043,500.00240,000.0021,000.00$$$$$N/A566,000.00130,000.0065,000.00914,000.0082,000.00San Antonio At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICEPremium (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersSub Regional CentersRegional Malls$$$$$$$$$$$$$22.0018.0012.0022.0018.0012.002.102.004.2016.009.0017.0025.00$$$$$$$$$$$$$24.0024.0022.0032.0028.0028.006.005.0016.7534.0031.0040.0060.00$$$$$$$$$$$$23.0021.0518.1627.0024.4919.904.403.759.5224.3316.1423.97N/A15.4%12.8%18.3%32.7%14.1%19.7%12.8%10.0%17.2%17.3%17.1%10.1%10.4%DEVELOPMENT LAND Low/Acre High/AcreOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidential$$$$$$45.0075,000.0045,000.0043,560.00110,000.009,000.00$$$$$$120.00475,000.00200,000.00220,000.00795,000.0060,000.002010 Global Market Report ■ www.naiglobal.com 130

Texarkana (Bowie County, Texas/Miller County, Arkansas), TexasSalt Lake City, UtahContactNAI American Realty Co.+1 903 793 2666Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage Income134,117133,36561,861$57,074Forbes Magazine predicted Texarkana to be ranked numbertwo in the US for the fastest growing SMSA in the under500,000 category, with a 28.57% increase in gross metropolitanproduct over the next five years. Transportation,medical, industrial and residential growth continues with anincreased vacancy rate in the retail sector.The medical office sector has experienced moderate growthas Texarkana continues to be the regional center for thesurrounding 60-mile area. The purchase of Wadley RegionalHospital by Brim Heathcare insures robust competition andgrowth in the industry.The industrial base for the market is diverse, with two papermills, Cooper Tire and Red River Army Depot the leadingemployers. The Depot is expected to transfer several thousandacres with buildings and infrastructure to Red RiverRedevelopment Authority in the near future. Constructionis under way for a new clean burning coal power plant,resulting in 1,000 construction jobs, and a new cementplant is in progress. Alumax Aluminum mill closed, butCooper Tire expanded in Texarkana after closing its Anniston,Alabama, plant.Texarkana continued to experience reduced growth in theretail sector in 2009. However, Lafferty’s Appliance, OsakaJapanese Restaurant, and Minton’s Sportsplex all opened,providing a bright spot for this market. Central Mall hasadded several small shops and maintains a high occupancyrate. Recent hotel openings include Holiday Inn Express,Best Western, Fairfield and Candlewood Suites with aHoliday Inn, Country Host, Crown Plaza and Sleep Inn,scheduled to open soon. A new convention center, hotel andrestaurant are planned on the Arkansas side of TexarkanaWe anticipate additional retail, hospitality and restaurantgrowth in this area. Texas A&M University has completedconstruction of a new science and technology building andconstruction has begun on a new 183,000 SF library buildingthat is a part of the 375-acre 1.4 million SF University.ContactNAI Utah CommercialReal Estate (Salt Lake)+1 801 578 5555Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage Income1,163,8451,324,171650,512$72,391Salt Lake City is a vibrant, pro-business community with ahighly educated populace and an entrepreneurial spirit thatis consistently rated among the best cities for business.Healthcare, technology and education remain the primarydrivers of the local economy. Unemployment is a relativelylow 6.1% compared to the national average. Salt Lake Citycontinues to outperform the nation as a whole and remainsone of the soundest economies in the US.The commercial real estate industry in the Salt Lake Citymetropolitan market trended downward in 2009 in responseto the changing economic conditions. The total office marketinventory is 31.5 million SF, one-third of which lies in thedowntown submarket. Direct vacancy in the overall marketincreased to 13.6%; vacancy downtown is 5.8% and 17.8%in the suburban submarkets. Class A full service rental rateshave dipped to an average of $25/SF for product downtownand an average of $22/SF for office space in the suburbansubmarkets. While leasing activity is down compared to2008, it has improved steadily through the year.Salt Lake City is a key distribution hub with over 109 millionSF of industrial space. Total availability in the industrialmarket reached 9% this year after bottoming at 4% in late2007. Lease rates have declined 7% since late 2008 andaverage at $.40/SF NNN per month. While leasing activityhas leveled off this year, a 470,000 SF distributionwarehouse was sold midyear. The retail market has justunder 37 million SF of leasable space. Vacancy in the overallmarket stands at 6%. Rates have dipped to $15/SF NNN inthe CBD.Salt Lake City’s largest project is the City Creek Centermixed-use redevelopment in the CBD. The 20-acre developmentincludes 1.5 million SF of office space, 800,000 SF ofretail space, 700 residential units and large swaths of openspaces. The development is scheduled for completion in2012.MedianHousehold Income$41,098MedianHousehold Income$62,526Total PopulationMedian Age38Total PopulationMedian Age31Texarkana At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersSub Regional CentersRegional Malls$$$$$$$$$$$$N/A10.505.5012.0013.008.002.002.5013.004.007.007.006.00$$$$$$$$$$$N/A12.509.5018.0017.0011.003.504.5016.0011.0016.0018.00N/A$$$$$$$$$$$$N/A11.507.5014.0015.009.502.252.7514.507.5011.5012.5018.50N/A20.0%85.0%5.0%5.0%7.0%15.0%20.0%0.0%15.0%10.0%10.0%8.0%DEVELOPMENT LAND Low/Acre High/AcreOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidential$$$$$$25,000.00185,000.0010,000.0010,000.00200,000.0014,000.00$$$$$$175,000.00250,000.0030,000.0025,000.00650,000.0070,000.00Salt Lake City At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIAL$$$$$$33.0022.0812.5018.7517.5017.50$$$$$$33.0028.0022.0024.0028.0022.00$ 33.00$ 24.51$ 17.73$ 21.38$ 22.20$ 18.5867.0%5.8%17.8%73.6%14.9%17.6%Bulk WarehouseManufacturingHigh Tech/R&DRETAIL$$$2.883.002.88$$$6.0012.9616.08$$$4.205.406.72N/AN/AN/ADowntownNeighborhood Service CentersCommunity Power CenterRegional Malls$$$$6.7510.8215.7728.50$$$$23.4029.1230.5337.20$ 15.23$ 16.88$ 23.77$ 32.85N/AN/AN/AN/ADEVELOPMENT LAND Low/Acre High/AcreOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-park$$N/A239,017.0085,665.00N/A$$N/A239,017.00565,789.00N/ARetail/Commercial LandResidential$ 379,310.00N/A$ 1,176,120.00N/A2010 Global Market Report ■ www.naiglobal.com 131

Washington County, UtahBurlington, VermontContactNAI Utah SouthernRegion+1 435 628 1609Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulation148,274184,26037,729Southern Utah has seen its housing market begin therecovery process and prices are expected to increase slightlyin 2010. Historically, housing has been a very importantsector in the local economy. The increasing stability in thehousing market, along with the local economic developmentoffice's efforts to diversify the economy, is a sign that ouraggressive historical growth trends are not far behind.The economy has had the greatest impact on the industrialmarket. While net absorption has been negative for twoconsecutive years, we have seen an increase in the numberof transactions relative to Q1 and Q2 of 2009. The vastmajority of new leases are for small space with short-termleases and low rates. Although new business leasing wasnot sufficient enough to outpace business contraction in2009, we expect to see positive absorption in 2010.Leasing activity and demand in the office market is alsoimproving. Although it was just a slight increase, we did seepositive absorption in the office market in Q3 2009. Thisimprovement was driven by softening lease rates andbusiness growth. We expect office leasing to remain softinto 2010 with tenants asking for aggressive rates andadditional concessions. Most of the leasing activity willcontinue to come from business relocations, although wedo expect an increase in the number of new businessesentering the market.Locally, retail continues to be Southern Utah’s most activemarket, although retailers are still struggling and vacancyrates are still rising. Most of the interest in the retail marketis in high exposure locations. While actual retail rents havedecreased, it has not been to the degree seen in the officeand industrial markets.NAI Utah Southern Region is the largest commercial realestate brokerage in Southern Utah as measured by agents,leasing volume and sales volume. We also offer propertymanagement services.ContactNAI J.L. Davis Realty+1 802 878 9000Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulation208,401210,825121,812The Greater Burlington commercial real estate market sawlimited growth in 2009. 2010 looks to be a similar year withbelow average growth anticipated in the retail, office andindustrial sectors. Each of these market segments shouldsee lease rates weaken. The number of lease transactionshas also declined over the past five years.Retail growth in 2010 is expected to be around 3.6%.Vacancy in the suburban markets has risen slightly, whilevacancy in the CBD remains stable. In the CBD, lease ratesare $18-$30/SF, with the highest rates seen in the ChurchStreet Marketplace and Burlington Town Center. Averagesuburban retail lease rates are between $8 and $13/SF. Newoffice development in 2010 is anticipated to be about 1.4%.There has been a weakening in the suburban office marketwhile the CBD remains stable. Vacancy rates for office spacein Chittenden County are 12.4%. Suburban vacancy ratesare closer to 14.7%. The CBD has the lowest vacancycoming in at 4%. Lease rates for Class A office space in theCBD range from $13-$17/SF and are stable. Class B spacein this district rents for $8-$13/SF and is also stable.Industrial growth in 2010 is projected at 2.2%. Vacancyrates have risen to 9% in 2009. Rents are expected toweaken for all classes of industrial space. Above averageproperty is leasing for $6-$8/SF, average industrial propertyrents for $4.50-$6/SF, and below average property leasesat $3-$4.50/SF. In general, large industrial propertiesare leasing for $3.50-$5.00/SF depending on conditionand location.Overall, 2010 should produce many opportunities for businessesof all sizes. As the economy tries to stabilize,development moves forward with new leasing opportunitiesfor the office, retail, and industrial markets.HouseholdAverage Income$59,135HouseholdAverage Income$71,349MedianHousehold Income$47,782MedianHousehold Income$57,648Total PopulationMedian Age30.2Total PopulationMedian Age38Washington County At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICEPremium (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersSub Regional CentersRegional Malls$$$$$N/A0.900.70N/A0.900.700.35N/AN/AN/AN/AN/AN/A$$$$$N/A1.251.15N/A1.251.150.55N/AN/AN/AN/AN/AN/A$$$$$$1.151.131.00N/A1.131.000.46N/AN/AN/AN/AN/AN/A35.0%8.6%14.9%35.0%8.6%14.9%23.3%N/AN/AN/AN/AN/AN/ADEVELOPMENT LAND Low/Acre High/AcreOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidential$$$$$350,000.00300,000.00125,000.00N/A450,000.0030,000.00$$$$$600,000.00500,000.00175,000.00N/A700,000.0060,000.00Burlington At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power CenterRegional Malls$$$$$$$$$$$$N/A15.0010.0015.0014.0010.003.504.006.5018.0010.0018.0020.00$$$$$$$$$$$$N/A22.0015.0022.0022.0014.006.506.008.0030.0016.0022.0035.00$$$$$$$$$$$$N/A18.5012.5018.5017.0012.005.005.007.2524.0013.0020.0027.50N/A4.0%5.0%14.0%14.2%15.5%7.5%8.5%9.6%7.4%7.8%7.0%7.0%DEVELOPMENT LAND Low/Acre High/AcreOffice in CBD$ 15.00 $ 28.00Land in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidential$$$$$90,000.0060,000.0050,000.00200,000.0060,000.00$$$$$125,000.00120,000.0080,000.00500,000.00120,000.002010 Global Market Report ■ www.naiglobal.com 132

Northern VirginiaSeattle/Puget Sound, WashingtonContactNAI KLNB+1 571 382 2100Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage IncomeMedianHousehold IncomeTotal PopulationMedian Age2,197,4062,288,5931,078,992$123,675$93,24337.5The Northern Virginia office market experienced an increasein vacancy rates matched by a drop in the average askingrental rate. The amount of available space in NorthernVirginia is on the rise as many tenants remain conservative.This trend has resulted in ample opportunities for companiesin decent financial position to take advantage of landlordswho are offering generous incentives, or to acquire spacethat has already been built-out to a high standard.Many companies have been inclined to shed jobs or consolidatetheir office requirements in order to cut expenses,leading to a decrease in Northern Virginia’s overall demandfor office space. In coordination with diminished demand,vacancy rates in Northern Virginia continued to rise. At theclose of 2009, 13 buildings were under construction inNorthern Virginia for a total of 3.67 million SF, of which 67%was pre-leased.The Army, in conjunction with Duke Realty, broke ground onthe Mark Center Office Park, a 1.7 million SF office complexin the I-395 submarket. The project is being developed tohouse Department of Defense personnel and is scheduledto be completed by the September 2011 Base Realignmentand Closure (BRAC) deadline. The JBG Companies brokeground on a 144,000 SF office building, located at 900 NGlebe Road in the Ballston submarket. The building is 100%leased to the Virginia Tech Research Institute, which willreceive ownership upon completion of the structure. Decliningoffice demand and the frozen credit markets have causeddevelopers to delay new construction projects unless thereis a significant portion of pre-leasing activity.Northern Virginia can be broken down into two noticeablydifferent scenarios: inside the beltway and outside theBeltway. Recovery momentum is expected to continue insubmarkets inside the Beltway close to Washington, DC,where rental rates have held steady.Even with limited new office supply over the past year andsupport from the stimulus package and increased federalbudget, the region is struggling, but poised, to recover muchmore quickly than other parts of the country.ContactNAI Puget SoundProperties+1 425 586 5600Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage IncomeMedianHousehold IncomeTotal PopulationMedian Age3,398,0533,617,0981,711,309$83,654$65,47238The Seattle/Puget Sound region has suffered major joblosses since the national recession finally hit the local marketduring the summer of 2009. Vacancies have almost doubledin office, industrial and retail sectors compared to the lowaverages the region enjoyed in previous years. Vacancy isexpected to peak around mid-year 2010. Microsoft andBoeing have had minimal layoffs as compared to other largecorporations and both continue to be anchors of stability forthe region.Regional Puget Sound office vacancy rates are at 13% andare expected to rise to over 20% during 2010. DowntownSeattle has 3.5 million SF of new product scheduled to hitthe market in 2010. This fact alone will keep the ratesdepressed in Seattle, while downtown Bellevue will enjoylower vacancy due to the dominating presence of Microsoftand little new spec product expected on the market.The Puget Sound industrial market has suffered due todecreased container traffic at the ports of Seattle andTacoma. Home construction and related industries contributeto the total vacancy which averages over 8% in the region.Bright spots in demand have been growth in aerospaceproduction and warehousing of consumer goods. Occupancyis expected to begin to increase early in 2010 starting in thehuge Kent Valley market.The retail sector has been hit by the downturn in theeconomy. However, the overall vacancy hovers at 7%.Vacancy is expected to increase slightly during the first halfof 2010 and then stabilize. Most vacancy is attributed to bigbox stores who have vacated their facilities. Some retailersare taking advantage of the favorable leasing conditions andexpanding market share.The investment market has been painfully slow due to thelack of available financing. We expect conditions to graduallyimprove during the year. Investors with cash and the abilityto act quickly will be able to pick up assets well belowreplacement costs.Multifamily continues to be the most solid sector of themarket. Capitalization rates are 6-8% and rent rates areexpected to begin rising by mid year. Signs of recovery areevident across the region and opportunities exist for tenantsand smart investors.Northern Virginia At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power CenterRegional Malls$$$$$$$N/AN/AN/A29.0020.0016.006.00N/A7.00N/A20.0016.00N/A$$$$1$$$N/AN/AN/A50.0050.0038.008.00N/A23.00N/A50.0020.00N/A$$$$$$$N/AN/AN/A42.0031.0026.009.00N/A12.00N/A35.0019.00N/AN/AN/AN/AN/A20.0%15.0%12.0%N/A18.0%N/AN/AN/AN/ADEVELOPMENT LAND Low/Acre High/AcreOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidential$$$$N/A300,000.00200,000.00100,000.00300,000.00N/A$$$$N/A5,000,000.00500,000.00400,000.005,000,000.00N/ASeattle/Puget Sound At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIAL$$$$$$28.0024.0018.0025.0017.0014.00$$$$$$37.0031.0027.0034.0026.0022.00$ 26.00$ 23.00$ 19.00$ 27.00$ 22.00$ 17.0070.0%15.0%13.0%55.0%15.0%15.0%Bulk WarehouseManufacturing$$3.704.25$$5.108.20$$3.854.708.0%10.0%High Tech/R&DRETAILDowntownNeighborhood Service CentersSub Regional CentersRegional Malls$$$$$8.7527.0014.0021.0030.00$$$$$15.0065.0032.0038.0090.00$ 12.00$ 42.00$ 23.00$ 27.00$ 39.0015.0%8.1%9.2%5.0%4.8%DEVELOPMENT LAND Low/Acre High/AcreOffice in CBD$ 6,000,000.00 $15,000,000.00Land in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-park$$$500,000.00275,000.00210,000.00$$$900,000.00510,000.00600,000.00Retail/Commercial LandResidential$$650,000.00210,000.00$ 2,700,000.00$ 1,400,000.002010 Global Market Report ■ www.naiglobal.com 133

Spokane, WashingtonTri-Cities, WashingtonContactNAI Black+1 509 623 1000Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage IncomeMedianHousehold IncomeTotal PopulationMedian Age474,627520,228233,916$61,434$47,29837The most significant change in the Spokane market is thedramatic decrease in investment sales. Apartment buildingsales totaled $70 million in 2008 but 2009 sales are anticipatedaround $10 million. Apartment vacancy rates remainlow at 5.58%, but the lack of available financing has greatlyreduced activity in that sector. Additionally, there havebeen few sales of retail, office and industrial properties toinvestors. Those properties that have been sold have tradedat capitalization rates from 9-11%.Spokane office leasing has remained steady with manymajor companies taking advantage of attractive rent andtenant improvement packages. The Principal Financial Groupleased 35,000 SF in the Riverview Corporate Center atSullivan Road, relocating from the Rock Pointe CorporateCenter. Shell Energy relocated and expanded to the WellsFargo Bank Building taking 10,000 SF, and Western StatesInsurance Company upgraded to 9,000 SF in the RiverpointOffice Building.The Spokane office market experienced an increase invacancy from 10.94% in 2008 to 12.68% in 2009.Spokane's medical office market is one bright spot in themarket. 2009 has seen a steady demand for office spaceby growing medical and dental specialist practices. Thisdemand has generated new owner occupied medical officeconstruction and a reduction in the medical office vacancyrate from 7.49% to 7.23%.National retailers have greatly reduced their plans for newstore openings in the region. There has been some activityin the retail leasing market limited mostly to local retailers.The downtown CBD remains a vibrant shopping district witha slight decrease in retail sales. The industrial market hasstabilized and become fairly active in the second half of2009. Spokane's industrial vacancy increased slightly from8.51% to 8.82% with rental rates remaining unchanged.With the lack of any new construction anticipated in the nextyear, vacancy rates should decrease with rents increasingin 2010.The overall economic climate in Spokane remains relativelystable. There will continue to be some distressed sellersin the market due to the economy, creating buying opportunitiesfor owner users or investors with cash. Time willcontinue to stabilize and improve the overall commercial realestate market.ContactNAI Tri-Cities+1 509 943 5200Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage IncomeMedianHousehold IncomeTotal PopulationMedian Age234,721248,87889,082$64,124$59,32333The Tri-Cities is located in southeastern Washington and iscomposed of Richland, Kennewick, Pasco and numerous surroundingrural communities. Easily accessible, the area is theservice and occupational hub in the region. The economy isfueled by government contracted projects for environmentalclean-up, scientific research and development, agricultureand healthcare.In 2009 the medical industry topped the list of sectors inthe Tri-Cities that remained strong. Contributing to the trendwas Kadlec Regional Medical Center, which opened three20,000 SF office buildings designed to house hospitalownedphysician practices. Pacific Northwest National Labfollowed the development trend with continued constructionof 300,000 SF of additional lab and professional space at itsnorth Richland campus. Manufacturing and warehouseproperty remained constant as well, although this was drivenmore by limited inventory rather than a response to a newinsurgence of business.On the down trend was demand for office and retail spaceas national chains and local businesses felt the crunch ofthe economic recession. Given this down trend rental ratesfor office space fell markedly while vacancy rates increasedto 10% for Class B office space, the bulk of available officespace in the region. Retail space also struggled with higherthan normal vacancies, especially in newer neighborhoodpower centers.Large commercial construction projects this year have beensingle facility projects such as the new headquarters forGesa Credit Union. While interest in further developmenthas been strong growth has been slow as a result of thechallenges faced by contractors at loan origination. Therefore,much of the development this year has focused ontenant improvements and the filling of existing commercialproperties.2010 predictions are brighter as Cascade Natural Gas andKennewick General Hospital anticipate breaking ground ontheir new facilities. Other growth, tied to local lending,appears to be positive for developers. With unemploymentat 6% and home values currently up 8.9% over the pastthree years, 2010 looks strong.Spokane At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIAL$$$$N/A18.0014.00N/A19.5014.50$$$$N/A22.0017.50N/A22.0017.50N/A$ 18.94$ 15.60N/A$ 20.00$ 16.75N/A9.6%19.2%N/A9.5%8.9%Bulk WarehouseManufacturingHigh Tech/R&DRETAIL$$$2.644.565.76$$$3.605.767.56$$$3.005.046.008.1%8.9%8.4%DowntownNeighborhood Service CentersCommunity Power CenterRegional Malls$$$$9.008.006.0018.00$$$$30.0028.0026.0036.00$ 22.00$ 20.00$ 18.00$ 22.0011.9%9.1%8.9%8.2%DEVELOPMENT LAND Low/Acre High/AcreOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-park$$$$65.00300,000.00175,000.00100,000.00$$$$100.00500,000.00300,000.00900,000.00Retail/Commercial Land$ 400,000.00 $ 1,500,000.00Residential$ 75,000.00 $ 250,000.00Tri-Cities At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIAL$$$$N/AN/A9.0018.0018.0012.00$$$$N/AN/A12.0023.0023.0016.00N/AN/A$ 10.50$ 20.50$ 20.50$ 14.00N/AN/A10.%5.0%10.0%5.0%Bulk WarehouseManufacturingHigh Tech/R&DRETAILDowntown$$$$2.502.503.508.00$$$$3.003.006.0010.00$$$$2.752.754.759.005.0%5.0%3.0%15.0%Neighborhood Service CentersSub Regional CentersRegional Malls$$12.0015.00N/A$$16.0020.00N/A$ 14.00$ 17.50N/A25.0%10.0%N/ADEVELOPMENT LAND Low/Acre High/AcreOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidential$$$$$N/A175,000.0030,000.00150,000.00218,000.0025,000.00$$$$$N/A392,000.0088,000.00218,000.00785,000.0050,000.002010 Global Market Report ■ www.naiglobal.com 134

Madison, WisconsinMilwaukee, WisconsinContactNAI MLG Commercial+1 608 663 6000Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage IncomeMedianHousehold Income579,515638,538450,515$74,890$61,780Historically, the state government and the University ofWisconsin-Madison have been the key drivers to the localeconomy and 2009 was no exception. These two economicdrivers are the insulating factors that allow Madison’seconomy to maintain a relatively stable outlook in spite ofthe national economic downturn. Madison was ranked theseventh best city in the country by Kiplinger’s PersonalFinance in July 2009.The 2009 industrial vacancy rate was 6.1%, the same as2008. The total industrial inventory includes 1,071 buildingsthat encompass almost 43.5 million SF. The average rentalrate for industrial space is $4.51/SF NNN.Though downtown retail space remains in high demand,overall retail vacancy has risen to 8.2%. In an effort toimprove leasing activity, owners of neighborhood/communitycenters are turning to non-traditional tenants and increasingup-front concessions. Development activity remains isolated,however Target continues to pursue a Hilldale Mall locationon the site of a stalled Whole Foods project.Commercial investment capitalization rates have shiftedfrom 7%-8% to 9%-11%. The multifamily rental market hasincreased capitalization rates from 6%-7% to 8%-9%.Developers are holding the line on commercial leasing, whileothers are decreasing asking rents and negatively impactingNOIs in the marketplace.Hotel development continues and a proposed $109 millionEdgewater Hotel is the largest redevelopment in years. Theaverage hotel occupancy rate is 51.9% and the averagenightly room rate is $85/night.Madison’s office market has been facing significantchallenges. Overall vacancy rate is roughly 13.8%. Netabsorption for Q3 2009 was a negative 765 SF. Grossasking lease rates average between $16.60 -$16.80/SF.Office building sales amounted to only seven transactions atthe end of Q3 2009.The office, retail and industrial landlord’s ability to achievea healthy occupancy level in an already over built marketand developers’ ability to secure financing for key projectswill both be significant factors in 2010.ContactNAI MLG Commercial+1 262 797 9400(Brookefield)+1 414 347 9400(Milwaukee)Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage IncomeMedianHousehold Income2,341,6842,478,9761,097,412$67,676$58,700Transaction volume and aggregate value are down in allmarket sectors, further qualifying the fact that 2009 wasthe year of the smaller deal. As the nation’s economy slowlystarts to rebound, there is no better time to be a tenant,assuming your business is relatively stable. Slowly is the keyword as we enter 2010.Rental rates in the office market are down 20-25% andabsorption is heavily negative with vacancy climbing to18.5%. Tenants with lease expirations two to three years outcan realize dramatic savings by systematically renegotiatingtheir leases through blend and extend transactions.The industrial market has seen an increase in lease activityyet square footage requirements have decreased. Rentalrates and vacancy rates in Milwaukee have remainedrelatively stable with landlords requiring at or near askingrates while giving concessions on tenant improvements orrent abatement. Larger transactions are stewing, but may notoccur until Q1 2010. Many companies are towing-the-line toattain minimal profit.Wisconsin lost large employers like General Motors andother large employers, like Harley Davidson, have drasticallyreduced their workforce. Cyclical effects are being felt by allsectors as a result.The retail market saw minimal growth in 2009. The threelargest retail developments were the Shoppes on Sunset inWaukesha, anchored by Target and Pick 'n Save; a new Pick‘n Save in Wauwatosa; and Prairie Ridge Shops in PleasantPrairie, anchored by Target, JC Penny and Dick's SportingGoods. Tertiary markets saw a slight increase in vacancy asretailers pulled back expansion, and slower sales causedsome doors to close. Market rents dropped slightly as tenantsgained power over landlords eager to fill vacant space.New retailers in the market included Erewhon, Dave &Buster’s and Gold’s Gym. Many local and regional grocerssuch as Pick ‘n Save, Sendik’s, and Woodman’s (250,000SF) will continue to expand in 2010. Expect vacancies toincrease and effective market rents to drop until the marketlevels out.Total PopulationMedian Age36Total PopulationMedian Age38Madison At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power CenterRegional Malls$$$$$$$$$$$$$15.0012.008.0011.006.008.002.903.503.5015.009.0012.0015.00$$$$$$$$$$$$$27.0021.0016.0016.0017.0014.955.507.4413.0040.0018.0032.0050.00$$$$$$$$$$$$$20.0018.0012.0013.5012.0013.003.844.255.4620.0012.0015.0030.007.9%10.4%20.9%13.7%13.0%12.4%7.6%1.4%11.8%N/A9.7%6.5%2.5%DEVELOPMENT LAND Low/Acre High/AcreOffice in CBD$ 711,700.00 $ 1,627,058.00Land in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-park$$217,800.0029,900.00N/A$$820,670.00525,000.00N/ARetail/Commercial LandResidential$ 323,000.00N/A$ 1,677,000.00N/AMilwaukee At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)$N/A13.00 $N/A18.00N/A$ 15.00N/A10.1%Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)$ 5.00N/A$ 11.00N/A$ 9.00N/A22.0%N/AClass A (Prime)$ 9.00 $ 13.00 $ 11.50 15.0%Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAIL$$$$5.001.001.004.25$$$$11.005.005.009.75$$$$9.004.603.506.0018.0%13.0%5.7%6.0%DowntownNeighborhood Service CentersCommunity Power CenterRegional Malls$$$$10.007.0010.0020.00$$$$30.0022.0025.0045.00$ 20.00$ 15.00$ 17.00$ 30.0011.0%15.0%10.0%3.0%DEVELOPMENT LAND Low/Acre High/AcreOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidential$$$$N/A100,000.0040,000.0020,000.00100,000.00N/A$$$$N/A250,000.00250,000.00175,000.00200,000.00N/A2010 Global Market Report ■ www.naiglobal.com 135

Northeastern (Fox Valley/Green Bay), WisconsinCasper, WyomingContactNAI MLG Commercial+1 920 997 9990Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulation1,099,5811,106,993310,990Northeastern Wisconsin felt the effect of the economicdownturn in mid-2008 and through all of 2009, but themarket can best be characterized as stable going into 2010.The office and retail sectors experienced little change invacancy rates in 2009. Overall vacancy for industrial is 15-18%The office, industrial and retail sectors have all experiencedreduced rental rates on leases as landlords have beenreceptive to downward adjustments in rents in return for lockingin credit-worthy tenants for longer terms. It is widely feltthat companies appear to be past the large job reductionsand plant closings that began in 2008, and recent economicindicators have renewed hope that the performance ofcompanies is improving and plans for expansion that hadbeen placed on hold may soon move forward again. Employersand their lenders are cautiously moving into a periodof hopeful stability.With many landlords concerned about their debt maturitiesand loan-to-value ratios, the traditional thinking of maintainingbuilding valuations has been thrown out the window.Many building valuations are upside down. As a result,landlords will not be able to sell their buildings for a profit forquite some time. As a result, landlords are seeking to firmup their cash flow to service debt and pay returns.Municipalities continue to hold off on expansion of industrialland holdings, as the current supply of existing sites appearsto be more than adequate to meet demand over the nextseveral years. Hence, vacancy rates are expected to remainstable with no speculative development under way or planned.Overall, transactions in 2009 were down throughout allmarket sectors, both on the number of transactions andtransaction value. Vacancy rates are expected to remainstable and may even be reduced as we enter 2010.ContactNAI Luker+1 307 265 8000Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulation73,47578,17144,612Casper has the amenities of a metro area with the convenienceand accessibility of a smaller community. With 75,000people in Natrona County, the Casper area is the largestMSA in Wyoming and supports a vibrant economy. Caspercradles a broad industry base built around natural resourcesand expanding to manufacturers who desire low overheadwith a central western presence.Industrial space rents range from $5 to $12/SF gross andthere is supply of about 4 million SF of rentable area and avacancy rate of less than 5%. Office rents are $10 to$20/SF gross with a supply of about 2 million SF and avacancy rate of around 10%. Retail space is priced from$12-$25/SF gross with a supply of about 2.25 million SFand a vacancy rate of 12% due to a couple of recent bigbox vacancies (Office Depot and Rex's).There has been heavy retail and office development on theeast side of Casper, including a 600,000 SF regional mall,a Wal-Mart super center (there is also a newer west sideWal-Mart super center), Home Depot, Menards, five nationalhotels, car dealers, and 500,000 SF of office/medicalcampuses. Continued industrial demand has driven developmentto the north and west.A 700-acre development is currently under way with railspur access through Burlington Northern and in closeproximity to Natrona County International Airport, whichis ideal for manufacturing and distribution. Drilling and oilservice companies have continued showing strong demandin the region.Casper’s location facilitates access to worldwide marketsthrough Wyoming’s only international airport, routes alongI-25 and rail routes. Casper is a regional medical, financeand retail hub with a trade area encompassing centralWyoming. Companies are opening new facilities, whileestablished industries expand, creating jobs, infusing capitaland solidifying investment.HouseholdAverage Income$60,479HouseholdAverage Income$71,361MedianHousehold Income$55,755MedianHousehold Income$46,558Total PopulationMedian Age39Total PopulationMedian Age35Northeastern (Fox Valley/Green Bay), Wisconsin At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power CenterRegional Malls$$$$$$$$$$$N/A16.0012.50N/A12.0010.002.002.805.008.0012.0012.0025.00$$$$$$$$$$$N/A18.0013.50N/A16.0012.002.505.006.5015.0015.0019.0055.00$$$$$$$$$$$N/A17.0013.00N/A14.0011.002.303.905.6011.5013.5015.0035.00N/A15.0%20.0%N/A15.0%20.0%20.0%8.0%14.0%15.0%15.0%15.0%10.0%DEVELOPMENT LAND Low/Acre High/AcreOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-park$$$N/A85,000.0025,000.0050,000.00$$$N/A140,000.0050,000.0090,000.00Retail/Commercial Land$ 140,000.00 $ 1,500,000.00Residential$ 35,000.00 $ 50,000.00Northeastern (Fox Valley/Green Bay), Wisconsin At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power CenterRegional Malls$$$$$$$$$$$$$18.0015.0010.0016.0015.008.003.004.006.0012.0010.0012.006.00$$$$$$$$$$$$$20.0020.0015.0019.0018.0014.008.0010.0012.0016.0016.0018.0020.00$$$$$$$$$$$$$19.0017.5012.5018.0017.0010.005.007.009.0014.0012.0015.0013.005.0%10.0%12.0%7.0%5.0%9.0%4.0%4.0%3.0%8.0%6.0%12.0%8.0%DEVELOPMENT LAND Low/Acre High/AcreOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidential$$$$$$250,000.00140,000.0065,000.0040,000.00300,000.00100,000.00$$$$$$350,000.00200,000.00150,000.00100,000.00900,000.00300,000.002010 Global Market Report ■ www.naiglobal.com 136

Jackson Hole, WyomingContactNAI Jackson Hole+1 307 734 8700Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulation29,90733,94515,094Jackson, Wyoming, sits at 6,200 feet above sea level inTeton County. The unique natural beauty of this area hasmade it a world famous tourist destination and resort areawith thriving retail shops, art galleries and a vibrant nightlife to complement the numerous outdoor activities. Jacksonis ranked amongst the top resort towns in the nation.Jackson is the county seat of Teton County and the onlyincorporated municipality in the region. Of the 2.7 millionacres in Teton County, 97% are federally or state owned andmanaged. The remaining 3% consist of already developedland and permanently deeded conservation easements,leaving available land scarce.The headwaters of the Snake River are located in TetonCounty. In addition to world class fly fishing, the river offersstretches for adventurous white water rafting as well as arelaxing, scenic float. The three ski resorts in the county,Jackson Hole Mountain Resort, Grand Targhee Resort andSnow King Resort, delight visitors and residents alike.Wyoming public schools are well-funded and residents enjoyexcellent amenities. Wyoming’s tax structure is one of themost business-friendly in the nation, with no personalincome tax, no corporate income tax, no gross receipts tax,no chain store tax, no excise taxes and low property taxes.Wyoming is a freeport state which allows for a relativelyuninhibited flow of goods through the state to destinationsacross the US and from Canada to Mexico. US energyindependence depends heavily on western Wyoming.The area is the focus of extensive exploration and oil fielddevelopment and has one of the largest natural gasreserves in the world.The world's largest known supply of oil shale is the GreenRiver deposit in Southwestern Wyoming. Wyoming also hasthe nation's largest supply of coal, and is one of the top fourstates in green job growth, including wind technology.HouseholdAverage Income$101,106MedianHousehold Income$61,653Total PopulationMedian Age37.8Jackson Hole At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power CenterRegional Malls$$$$$$$25.0030.0015.0020.0020.0017.00N/AN/AN/A25.00N/AN/AN/A$$$$$$$25.0035.0019.0020.0025.0022.00N/AN/AN/A32.00N/AN/AN/A$$$$$$$25.0032.5017.0020.0022.5019.75N/AN/AN/A28.50N/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/ADEVELOPMENT LAND Low/Acre High/AcreOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidential$$$N/AN/AN/A3,000,000.003,500,000.003,000,000.00$$$N/AN/AN/A6,000,000.009,500,000.003,000,000.002010 Global Market Report ■ www.naiglobal.com 137

■ Glossary■AcreArea of land equal to 43,560 SF (4,047 M 2 ).Bulk Warehouse (Warehouse)All modern distribution facilities 25,000 SF (2,500M 2 ) or greater. Quoted annual rate,net basis.CBD (City Centre)The central business district is a market’sprimary concentration of business activity, muchlike a traditional downtown.Class “A” Office (Prime)Excellent location (5,000 SF or 500 M 2 ), highqualitytenants, high-quality finish, excellentlymaintained; usually new, or old buildings that arecompetitive with new construction.Class “B” Office (Secondary)Good location (5,000 SF or 500 M 2 ), fairly highqualityconstruction and tenants. Buildings withonly minimal deterioration or obsolescence.Community Power Centers (Big Box)Retail centers over 250,000 SF – 600,000 SF(25,000 M 2 - 56,000 M 2 ), which include one ormore “category killers”, life-style centers and outletcenters.Development Land PricesBased on land sales recorded between October2006 and October 2007. The guide quotes therate paid for land with available utilities andzoning in place for the use noted.Downtown Office (City Centre)Sites in the market’s central business district.Downtown Retail (City Centre)Any prime ground floor retail space in the market’scentral business district, excluding spacein enclosed malls. United Kingdom and Irelandpresented on Zone A Basis.Education IndexThe Education Index was calculated bydividing the number of people with a college degreeand some college education by the totalpopulation in that Market and by then dividingthat quotient by the same figure for the UnitedStates. Data provided by SRC, LLC.Effective Average RentNet present value rate taking concessions, suchas free rent and escalations into account.Full Service BasisIndicates that the landlord pays all expenses.Government IndexThe Government Index was calculatedby dividing an estimate of totalgovernment services employment by total nonagriculturalemployment for a Market. This quotientwas then divided by the same data for theUnited States. Data providedby SRC, LLC.Health Services IndexThe Health Services Index was calculatedby dividing an estimate of total healthservices employment by total non-agriculturalemployment for a Market. This quotient wasthen divided by the same data for the UnitedStates. Data provided by SRC, LLC.High Tech/R&D (Flex)Modern buildings with space dedicated toresearch/product development, or buildingsin industrial settings with high percentage of office/showroomstyle finish.GLAGross leasable area.GSAGeneral Services Administration, the USGovernment’s property procurement agency.HectareArea of land equal to 2.47 acres.Highway/Commercial LandRefers to any commercially zoned land that hasfrontage along, and access to, a major state orinterstate highway.Income IndexThe Income Index was calculated by dividingper capita income in a Market by the averagenational per capita income. Data provided bySRC, LLC.Industrial RentsThis report quotes the annual rate on anet basis.Manufacturing SpaceAll facilities of 25,000 SF (2,500 M 2 ) or greater usedin the production or development of goods.Neighborhood Service Centers(Retail Units on Parks)Retail centers ranging in size from 75,000 to250,000 SF (7,500 M 2 to 25,000 M 2 ), anchoredby foot and/or drug stores providing generalservices to the local market—including padsites. United Kingdom and Ireland presented onZone A Basis.Net BasisIndicates the tenant pays for most of theoperating costs such as utilities, maintenance,repairs and cleaning.Office IndexThe Office Index was calculated by dividingan estimate of office employment by totalnon-agricultural employment for a Market.This quotient was then divided by the samedata for the United States. Data provided bySRC, LLC.Office RentsThis report quotes the annual rate asfull-service basis. Europe quoted as annualrates, net basis.Population Growth IndexThe Population Growth Index was calculated bydividing the projected five year populationgrowth rate for the Market by the sameprojected value for the United States. Data providedby SRC, LLC.Regional Mall(Regional Shopping Centres)Suburban or downtown properties over600,000 SF (60,000 M 2 ) with at least two majordepartment store anchor tenants.Retail RentsThis report quotes the annual rate on afull-service basis. Europe quoted as annualrates, net basis.Retail Services IndexThe Retail Services Index was calculatedby dividing an estimate of total retailservices employment by total non-agriculturalemployment for a Market. This quotient wasthen divided by the same data for the UnitedStates. Data provided by SRC, LLC.S.F.; s.f.Square foot or square feet, depending on thereference. 1 square foot = 0.093 M 2 .S.M.; sm; M 2Square meter. 1 S.M. = 10.764 square feet.Solus Food StoresStand-alone large supermarkets orhypermarkets from 50,000 SF (5,000 M 2 )and up. Quoted as annual rates, net basis.Suburban OfficeStand-alone buildings and business parks notwithin the metro city limits.Vacancy RateThe percentage of market space beingdirectly offered by the landlord or properties forlease and the amount of sublease space beingoffered by tenants. In cases where the space isunder lease but not occupied, count it as partof the vacancy.Wholesale IndexThe Wholesale Index was calculated bydividing an estimate of wholesale employmentby total non-agricultural employment for a Market.This quotient was then divided by the samedata for the United States. Dataprovided by SRC, LLC.Zone AThe area at the front of the shop at pedestrianlevel. It is usually 6.1 meters deep, thismeasurement equating 20 feet. In a verylimited number of locations, Zone A can be30 feet deep (9.1 meters.)2010 Global Market Report ■ www.naiglobal.com 138

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