The CoStar Office Report

Transcription

1 The CoStar Office Report T H I R D Q U A R T E R National Office Market

2 National Office Market THIRD QUARTER 2010 NATIONAL Table of Contents Table of Contents A Methodology B Terms & Definitions C Market Highlights & Overview Employment & Tenant Analysis Employment & Unemployment Analysis Tenant Profiles Inventory & Development Analysis Inventory & Development Analysis Map of Growth in Inventory Last 5 Years Select Top Deliveries Select Top Under Construction Properties Figures at a Glance Figures at a Glance by Class & Market Figures at a Glance Grouped by CBD vs Suburban Historical Figures at a Glance Leasing Activity Analysis Leasing Activity Analysis Select Top Lease Transactions Map of Change In Vacant Square Footage Last 12 Months Sales Activity Analysis Sales Activity Analysis Select Top Sales Transactions Select Same Building Sales 2010 COSTAR GROUP, INC. THE COSTAR OFFICE REPORT A

3 NATIONAL THIRD QUARTER 2010 National Office Market Methodology The CoStar Office Report, unless specifically stated otherwise, calculates office statistics using CoStar Group s entire database of existing and under construction office buildings in each metropolitan area. Included are office, office condominium, office loft, office medical, all classes and all sizes, and both multi-tenant and single-tenant buildings, including owner-occupied buildings. CoStar Group's national database includes approximately 69.1 billion square feet of coverage in 2.8 million properties. All rental rates reported in the CoStar Office Report have been converted to a Full Service equivalent rental rate. CoStar regularly opens new markets to expand its geographic coverage which results in varying start dates for historical data. Due to differences in market start dates and a desire to show as long a historical timeframe as possible, only the following markets are included in the historical charts within this report: Atlanta, Austin, Baltimore, Boston, Broward County, Charlotte, Chicago, Cincinnati, Cleveland, Columbus, Dallas/Ft Worth, Dayton, Denver, Detroit, East Bay/Oakland, Houston, Indianapolis, Inland Empire (California), Jacksonville (Florida), Kansas City, Long Island (New York), Los Angeles, Memphis, Miami-Dade County, Nashville, Northern New Jersey, Orange (California), Orlando, Palm Beach County, Philadelphia, Phoenix, Pittsburgh, Raleigh/Durham, Sacramento, San Diego, San Francisco, Seattle/Puget Sound, South Bay/San Jose, St. Louis, Tampa/St Petersburg, Washington, and Westchester/ So Connecticut. When ever possible all markets are included to provide as broad as possible national coverage. The Market Highlights and Overview narrative includes all markets. For information on subscribing to CoStar s other products and services, please contact us at COSTAR, or visit our web site at Copyright 2010 CoStar Group, Inc. All Rights Reserved. Although CoStar makes efforts to ensure the accuracy and reliability of the information contained herein, CoStar makes no guarantee, representation or warranty regarding the quality, accuracy, timeliness or completeness of the information. The publication is provided as is and CoStar expressly disclaims any guarantees, representations or warranties of any kind, including those of MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. CoStar Group, Inc. 2 Bethesda Metro Center Bethesda, MD USA (800) NASDAQ: CSGP B THE COSTAR OFFICE REPORT 2010 COSTAR GROUP, INC.

4 National Office Market THIRD QUARTER 2010 NATIONAL Terms & Definitions Availability Rate: The ratio of available space to total rentable space, calculated by dividing the total available square feet by the total rentable square feet. Available Space: The total amount of space that is currently being marketed as available for lease in a given time period. It includes any space that is available, regardless of whether the space is vacant, occupied, available for sublease, or available at a future date. Build-to-Suit: A term describing a particular property, developed specifically for a certain tenant to occupy, with structural features, systems, or improvement work designed specifically for the needs of that tenant. A build-to-suit can be leased or owned by the tenant. In a leased build-to-suit, a tenant will usually have a long term lease on the space. Buyer: The individual, group, company, or entity that has purchased a commercial real estate asset. Cap Rate: Short for capitalization rate. The Cap Rate is a calculation that reflects the relationship between one year s net operating income and the current market value of a particular property. The Cap Rate is calculated by dividing the annual net operating income by the sales price (or asking sales price). CBD: Abbreviation for Central Business District. (See also: Central Business District) Central Business District: The designations of Central Business District (CBD) and Suburban refer to a particular geographic area within a metropolitan statistical area (MSA) describing the level of real estate development found there. The CBD is characterized by a high density, well organized core within the largest city of a given MSA. Class A: A classification used to describe buildings that generally qualify as extremely desirable investment-grade properties and command the highest rents or sale prices compared to other buildings in the same market. Such buildings are well located and provide efficient tenant layouts as well as high quality, and in some buildings, one-of-a-kind floor plans. They can be an architectural or historical landmark designed by prominent architects. These buildings contain a modern mechanical system, and have above-average maintenance and management as well as the best quality materials and workmanship in their trim and interior fittings. They are generally the most attractive and eagerly sought by investors willing to pay a premium for quality. Class B: A classification used to describe buildings that generally qualify as a more speculative investment, and as such, command lower rents or sale prices compared to Class A properties. Such buildings offer utilitarian space without special attractions, and have ordinary design, if new or fairly new; good to excellent design if an older non-landmark building. These buildings typically have average to good maintenance, management and tenants. They are less appealing to tenants than Class A properties, and may be deficient in a number of respects including floor plans, condition and facilities. They lack prestige and must depend chiefly on a lower price to attract tenants and investors. Class C: A classification used to describe buildings that generally qualify as no-frills, older buildings that offer basic space and command lower rents or sale prices compared to other buildings in the same market. Such buildings typically have below-average maintenance and management, and could have mixed or low tenant prestige, inferior elevators, and/or mechanical/electrical systems. These buildings lack prestige and must depend chiefly on a lower price to attract tenants and investors. Construction Starts: Buildings that began construction during a specific period of time. (See also: Deliveries) Contiguous Blocks of Space: Space within a building that is, or is able to be joined together into a single contiguous space. Deliveries: Buildings that complete construction during a specified period of time. In order for space to be considered delivered, a certificate of occupancy must have been issued for the property. Delivery Date: The date a building completes construction and receives a certificate of occupancy. Developer: The company, entity or individual that transforms raw land to improved property by use of labor, capital and entrepreneurial efforts. Direct Space: Space that is being offered for lease directly from the landlord or owner of a building, as opposed to space being offered in a building by another tenant (or broker of a tenant) trying to sublet a space that has already been leased. Existing Inventory: The square footage of buildings that have received a certificate of occupancy and are able to be occupied by tenants. It does not include space in buildings that are either planned, under construction or under renovation. Flex Building: A type of building designed to be versatile, which may be used in combination with office (corporate headquarters), research and development, quasi-retail sales, and including but not limited to industrial, warehouse, and distribution uses. A typical flex building will be one or two stories with at least half of the rentable area being used as office space, have ceiling heights of 16 feet or less, and have some type of drive-in door, even though the door may be glassed in or sealed off. Full Service Rental Rate: Rental rates that include all operating expenses such as utilities, electricity, janitorial services, taxes and insurance. Gross Absorption: The total change in occupied space over a given period of time, counting space that is occupied but not space that is vacated by tenants. Gross absorption differs from leasing Activity, which is the sum of all space leased over a certain period of time. Unless otherwise noted Gross Absorption includes direct and sublease space. Growth in Inventory: The change in size of the existing square footage in a given area over a given period of time, generally due to the construction of new buildings. Industrial Building: A type of building adapted for such uses as the assemblage, processing, and/or manufacturing of products from raw materials or fabricated parts. Additional uses include warehousing, distribution, and maintenance facilities. The primary purpose of the space is for storing, producing, assembling, or distributing product. Landlord Rep: (Landlord Representative) In a typical lease transaction between an owner/landlord and tenant, the broker that represents the interests of the owner/landlord is referred to as the Landlord Rep. Leased Space: All the space that has a financial lease obligation. It includes all leased space, regardless of whether the space is currently occupied by a tenant. Leased space also includes space being offered for sublease. Leasing Activity: The volume of square footage that is committed to and signed under a lease obligation for a specific building or market in a given period of time. It includes direct leases, subleases and renewals of existing leases. It also includes any pre-leasing activity in planned, under construction, or under renovation buildings. Market: Geographic boundaries that serve to delineate core areas that are competitive with each other and constitute a generally accepted primary competitive set of areas. Markets are buildingtype specific, and are non-overlapping contiguous geographic designations having a cumulative sum that matches the boundaries of the entire Region (See also: Region). Markets can be further subdivided into Submarkets. (See also: Submarkets) 2010 COSTAR GROUP, INC. THE COSTAR OFFICE REPORT C

5 NATIONAL THIRD QUARTER 2010 National Office Market Multi-Tenant: Buildings that house more than one tenant at a given time. Usually, multi-tenant buildings were designed and built to accommodate many different floor plans and designs for different tenant needs. (See also: Tenancy). Net Absorption: The net change in occupied space over a given period of time. Unless otherwise noted Net Absorption includes direct and sublease space. Net Rental Rate: A rental rate that excludes certain expenses that a tenant could incur in occupying office space. Such expenses are expected to be paid directly by the tenant and may include janitorial costs, electricity, utilities, taxes, insurance and other related costs. New Space: Sometimes called first generation space, refers to space that has never been occupied and/or leased by a tenant. Occupied Space: Space that is physically occupied by a tenant. It does not include leased space that is not currently occupied by a tenant. Office Building: A type of commercial building used exclusively or primarily for office use (business), as opposed to manufacturing, warehousing, or other uses. Office buildings may sometimes have other associated uses within part of the building, i.e., retail sales, financial, or restaurant, usually on the ground floor. Owner: The company, entity, or individual that holds title on a given building or property. Planned/Proposed: The status of a building that has been announced for future development but not yet started construction. Preleased Space: The amount of space in a building that has been leased prior to its construction completion date, or certificate of occupancy date. Price/SF: Calculated by dividing the price of a building (either sales price or asking sales price) by the Rentable Building Area (RBA). Property Manager: The company and/or person responsible for the day-to-day operations of a building, such as cleaning, trash removal, etc. The property manager also makes sure that the various systems within the building, such as the elevators, HVAC, and electrical systems, are functioning properly. Quoted Rental Rate: The asking rate per square foot for a particular building or unit of space by a broker or property owner. Quoted rental rates may differ from the actual rates paid by tenants following the negotiation of all terms and conditions in a specific lease. RBA: Abbreviation for Rentable Building Area. (See also: Rentable Building Area) Region: Core areas containing a large population nucleus, that together with adjacent communities have a high degree of economic and social integration. Regions are further divided into market areas, called Markets. (See also: Markets) Relet Space: Sometimes called second generation or direct space, refers to existing space that has previously been occupied by another tenant. Rentable Building Area: (RBA) The total square footage of a building that can be occupied by, or assigned to a tenant for the purpose of determining a tenant s rental obligation. Generally RBA includes a percentage of common areas including all hallways, main lobbies, bathrooms, and telephone closets. Rental Rates: The annual costs of occupancy for a particular space quoted on a per square foot basis. Sales Price: The total dollar amount paid for a particular property at a particular point in time. Sales Volume: The sum of sales prices for a given group of buildings in a given time period. Seller: The individual, group, company, or entity that sells a particular commercial real estate asset. SF: Abbreviation for Square Feet. Single-Tenant: Buildings that are occupied, or intended to be occupied by a single tenant. (See also: Build-to-suit and Tenancy) Sublease Space: Space that has been leased by a tenant and is being offered for lease back to the market by the tenant with the lease obligation. Sublease space is sometimes referred to as sublet space. Submarkets: Specific geographic boundaries that serve to delineate a core group of buildings that are competitive with each other and constitute a generally accepted primary competitive set, or peer group. Submarkets are building type specific (office, industrial, retail, etc.), with distinct boundaries dependent on different factors relevant to each building type. Submarkets are non-overlapping, contiguous geographic designations having a cumulative sum that matches the boundaries of the Market they are located within (See also: Market). Suburban: The Suburban and Central Business District (CBD) designations refer to a particular geographic area within a metropolitan statistical area (MSA). Suburban is defined as including all office inventory not located in the CBD. (See also: CBD) Tenancy: A term used to indicate whether or not a building is occupied by multiple tenants (See also: Multi-tenant) or a single tenant. (See also: Single-tenant) Tenant Rep: Tenant Rep stands for Tenant Representative. In a typical lease transaction between an owner/landlord and tenant, the broker that represents the interests of the tenant is referred to as a Tenant Rep. Time On Market: A measure of how long a currently available space has been marketed for lease, regardless of whether it is vacant or occupied. Under Construction: The status of a building that is in the process of being developed, assembled, built or constructed. A building is considered to be under construction after it has begun construction and until it receives a certificate of occupancy. Vacancy Rate: A measurement expressed as a percentage of the total amount of physically vacant space divided by the total amount of existing inventory. Under construction space generally is not included in vacancy calculations. Vacant Space: Space that is not currently occupied by a tenant, regardless of any lease obligation that may be on the space. Vacant space could be space that is either available or not available. For example, sublease space that is currently being paid for by a tenant but not occupied by that tenant, would be considered vacant space. Likewise, space that has been leased but not yet occupied because of finish work being done, would also be considered vacant space. Weighted Average Rental Rate: Rental rates that are calculated by factoring in, or weighting, the square footage associated with each particular rental rate. This has the effect of causing rental rates on larger spaces to affect the average more than that of smaller spaces. The weighted average rental rate is calculated by taking the ratio of the square footage associated with the rental rate on each individual available space to the square footage associated with rental rates on all available spaces, multiplying the rental rate by that ratio, and then adding together all the resulting numbers. Unless specifically specified otherwise, rental rate averages include both Direct and Sublet available spaces. Year Built: The year in which a building completed construction and was issued a certificate of occupancy. YTD: Abbreviation for Year-to-Date. Describes statistics that are cumulative from the beginning of a calendar year through whatever time period is being studied. D THE COSTAR OFFICE REPORT 2010 COSTAR GROUP, INC.

6 National Office Market OVERVIEW THIRD QUARTER 2010 NATIONAL U.S. s Vacancy Stays at 12.9% Net Absorption Positive 9,019,493 SF in the Quarter The U.S. Office market ended the third quarter 2010 with a vacancy rate of 12.9%. The vacancy rate was unchanged over the previous quarter, with net absorption totaling positive 9,019,493 square feet in the third quarter. Vacant sublease space decreased in the quarter, ending the quarter at 66,866,186 square feet. Rental rates ended the third quarter at $21.61, a decrease over the previous quarter. A total of 168 buildings delivered to the market in the quarter totaling 8,432,576 square feet, with 45,586,190 square feet still under construction at the end of the quarter. Absorption Net absorption for the overall U.S. office market was positive 9,019,493 square feet in the third quarter That compares to positive 7,301,869 square feet in the second quarter 2010, negative (5,712,046) square feet in the first quarter 2010, and positive 4,000,287 square feet in the fourth quarter Tenants moving out of large blocks of space in 2010 include: Wells Fargo moving out of 349,286 square feet at 155 5th St in San Francisco; AT&T moving out of 234,125 square feet at 2600 N Central Expy in the Dallas/Fort Worth market; and American Hospital Association moving out of 119,171 square feet at One North Franklin Bldg in Chicago. Tenants moving into large blocks of space in 2010 include: Blue Cross Blue Shield of Texas moving into 1,000,000 square feet at Blue Cross and Blue Shield of TX, Tower 1 in the Dallas/ Fort Worth market; United States Department of Justice moving into 579,776 square feet at Two Constitution Square in the Washington DC market; and Bloomberg L.P. moving into 176,000 square feet at One Beacon Court in New York City. The Class-A office market recorded net absorption of positive 7,236,469 square feet in the third quarter 2010, compared to positive 5,665,000 square feet in the second quarter 2010, negative (4,785,663) in the first quarter 2010, and positive 5,179,062 in the fourth quarter The Class-B office market recorded net absorption of positive 3,584,878 square feet in the third quarter 2010, compared to positive 1,464,620 square feet in the second quarter 2010, negative (242,963) in the first quarter 2010, and negative (33,997) in the fourth quarter The Class-C office market recorded net absorption of negative (1,801,854) square feet in the third quarter 2010 compared to positive 172,249 square feet in the second quarter 2010, negative (683,420) in the first quarter 2010, and negative (1,144,778) in the fourth quarter Net absorption for U.S. s central business district was positive 2,427,734 square feet in the third quarter That compares to positive 461,301 square feet in the second quarter 2010, negative (5,132,991) in the first quarter 2010, and positive 847,302 in the fourth quarter Net absorption for the suburban markets was positive 6,591,759 square feet in the third quarter That compares to positive 6,840,568 square feet in second quarter 2010, negative (579,055) in the first quarter 2010, and positive 3,152,985 in the fourth quarter Vacancy The office vacancy rate in the U.S. market area changed to Vacancy Rates by Class* % Class A Class B Class C Total Market 16% 15% 14% Vacancy Rate 13% 12% 11% 10% 9% 8% 7% q q q q q q q q q q q q q q q q q q q q Source: CoStar Property * Excludes markets - see Methodology page COSTAR GROUP, INC. THE COSTAR OFFICE REPORT 1

7 NATIONAL THIRD QUARTER 2010 National Office Market OVERVIEW 12.9% at the end of the third quarter The vacancy rate was 12.9% at the end of the second quarter 2010, 12.9% at the end of the first quarter 2010, and 12.7% at the end of the fourth quarter Class-A projects reported a vacancy rate of 15.2% at the end of the third quarter 2010, 15.3% at the end of the second quarter 2010, 15.2% at the end of the first quarter 2010, and 14.7% at the end of the fourth quarter Class-B projects reported a vacancy rate of 13.2% at the end of the third quarter 2010, 13.2% at the end of the second quarter 2010, 13.2% at the end of the first quarter 2010, and 13.1% at the end of the fourth quarter Class-C projects reported a vacancy rate of 8.9% at the end of the third quarter 2010, 8.9% at the end of second quarter 2010, 8.9% at the end of the first quarter 2010, and 8.8% at the end of the fourth quarter The overall vacancy rate in U.S. s central business district at the end of the third quarter 2010 changed to 11.7%. The vacancy rate was 11.7% at the end of the second quarter 2010, 11.6% at the end of the first quarter 2010, and 11.2% at the end of the fourth quarter The vacancy rate in the suburban markets decreased to 13.2% in the third quarter The vacancy rate was 13.3% at the end of the second quarter 2010, 13.2% at the end of the first quarter 2010, and 13.1% at the end of the fourth quarter Largest Lease Signings The largest lease signings occurring in 2010 included: the 1,000,000-square-foot lease signed by Security Exchange Commission at Constitution Center in the Washington DC market; the 695,800-square-foot lease signed by Kellogg Brown & Root LLC at KBR Tower in the Houston market; and the 655,001-square-foot deal signed by Department of Defense Medical Command at the Melpar Office Complex in the Washington DC market. Sublease Vacancy The amount of vacant sublease space in the U.S. market decreased to 66,866,186 square feet by the end of the third quarter 2010, from 71,541,986 square feet at the end of the second quarter There was 74,484,215 square feet vacant at the end of the first quarter 2010 and 76,587,185 square feet at the end of the fourth quarter U.S. s Class-A projects reported vacant sublease space of 40,702,910 square feet at the end of third quarter 2010, down from the 43,074,685 square feet reported at the end of the second quarter There were 44,797,311 square feet of sublease space vacant at the end of the first quarter 2010, and 46,700,966 square feet at the end of the fourth quarter Class-B projects reported vacant sublease space of 22,884,498 square feet at the end of the third quarter 2010, down from the 25,019,427 square feet reported at the end of the second quarter At the end of the first quarter 2010 there were 26,292,086 square feet, and at the end of the fourth quarter 2009 there were 26,512,468 square feet vacant. Class-C projects reported decreased vacant sublease space from the second quarter 2010 to the third quarter Sublease vacancy went from 3,447,874 square feet to 3,278,778 square feet during that time. There was 3,394,818 square feet at the end of the first quarter 2010, and 3,373,751 square feet at the end of the fourth quarter Sublease vacancy in U.S. s central business district stood at 19,092,578 square feet at the end of the third quarter It was 20,700,028 square feet at the end of the second quarter 2010, 21,253,681 square feet at the end of the first quarter 2010, and 22,045,274 square feet at the end of the fourth quarter Sublease vacancy in the suburban markets ended the third quarter 2010 at 47,773,608 square feet. At the end of the second quarter 2010 sublease vacancy was 50,841,958 square feet, was 53,230,534 square feet at the end of the first quarter 2010, and was 54,541,911 square feet at the end of the fourth quarter Rental Rates The average quoted asking rental rate for available office space, all classes, was $21.61 per square foot per year at the end of the third quarter 2010 in the U.S. market area. This represented a 0.5% decrease in quoted rental rates from the end of the second quarter 2010, when rents were reported at $21.72 per square foot. The average quoted rate within the Class-A sector was $26.78 at the end of the third quarter 2010, while Class-B rates stood at $19.45, and Class-C rates at $ At the end of the second quarter 2010, Class-A rates were $26.86 per square foot, Class-B rates were $19.55, and Class-C rates were $ The average quoted asking rental rate in U.S. s CBD was $26.64 at the end of the third quarter 2010, and $20.51 in the suburban markets. In the second quarter 2010, quoted rates were $26.68 in the CBD and $20.66 in the suburbs. Deliveries and Construction During the third quarter 2010, 168 buildings totaling 8,432,576 square feet were completed in the U.S. market area. This compares to 247 buildings totaling 13,426,318 square feet that were completed in the second quarter 2010, 238 buildings totaling 15,451,951 square feet completed in the first quarter 2010, and 20,846,958 square feet in 419 buildings completed in the fourth quarter Some of the notable 2010 deliveries include: Duke Energy Center, a 1,300,000-square-foot facility that delivered in first quarter 2010 in the Charlotte market, and Eleven Times Square, a 1,111,915-square-foot office building that delivered in third quarter 2010 in the New York City market. There were 45,586,190 square feet of office space under 2 THE COSTAR OFFICE REPORT 2010 COSTAR GROUP, INC.

8 National Office Market OVERVIEW THIRD QUARTER 2010 NATIONAL construction at the end of the third quarter The largest projects underway at the end of third quarter 2010 were One World Trade Center, a 2,923,786-square-foot building, and World Trade Center - Tower Four, a 2,307,000-square-foot building. Both properties are located in New York City. Inventory Total office inventory in the U.S. market area amounted to 9,791,118,119 square feet in 439,217 buildings as of the end of the third quarter The Class-A office sector consisted of 3,090,900,015 square feet in 16,806 projects. There were 178,558 Class-B buildings totaling 4,555,088,700 square feet, and the Class-C sector consisted of 2,145,129,404 square feet in 243,853 buildings. Within the Office market there were 15,718 owner-occupied buildings accounting for 667,690,960 square feet of office space. Sales Activity Tallying office building sales of 15,000 square feet or larger, U.S. office sales figures rose during the second quarter 2010 in terms of dollar volume compared to the first quarter of In the second quarter, 394 office transactions closed with a total volume of $7,311,439,291. The 394 buildings totaled 38,148,046 square feet and the average price per square foot equated to $ per square foot. That compares to 304 transactions totaling $4,118,732,529 in the first quarter The total square footage in the first quarter was 25,014,569 square feet for an average price per square foot of $ Total office building sales activity in 2010 was up compared to In the first six months of 2010, the market saw 698 office sales transactions with a total volume of $11,430,171,820. The price per square foot averaged $ In the same first six months of 2009, the market posted 464 transactions with a total volume of $6,804,066,584. The price per square foot averaged $ Cap rates have been higher in 2010, averaging 8.70% compared to the same period in 2009 when they averaged 8.22%. One of the largest transactions that has occurred within the last 4 quarters in the U.S. market is the sale of 300 N LaSalle St in Chicago. This 1,302,901 square foot office building sold for $655,000,000, or $ per square foot. The property sold on 7/29/2010, at a 6.34% cap rate. Albany/Schenectady/Troy With no new office space being delivered to the market, and negative (48,698) square feet of net absorption, Albany/ Schenectady/Troy s vacancy rate went from 6.6% to 6.7% in the quarter. Rental rates went from $14.58 to $14.76 during that time. At the end of the quarter, there was 12,000 square feet underway for future delivery. Albuquerque The Albuquerque office market saw vacancies rise and Absorption & Deliveries* Past 9 Quarters Millions SF (5.0) (10.0) (15.0) (20.0) (17.3) (15.2) Net Absorption (9.3) rental rates decrease 2009 from 2009 the 2q 2009 second 2009 quarter 4q to 2q the 2010 third quarter The overall vacancy rate currently sits at 12.7%, from 12.5% in the previous quarter. Rental rates ended the quarter at $15.85 per square foot, from $15.92 in the previous quarter. There was a total of 7,500 square feet that delivered in the quarter, with 47,000 square feet still under construction at the end of the quarter. Anchorage The Anchorage office market reported no new deliveries and no space under construction at the end of the third quarter With this limited construction activity, net absorption of negative (14,320) square feet caused the vacancy rate to up from 5.2%to 5.4% in the quarter. Rental rates stood at $ Asheville The Asheville office market reported no new deliveries and no space under construction at the end of the third quarter With this limited construction activity, net absorption of negative (11,519) square feet caused the vacancy rate to up from 8.7%to 8.8% in the quarter. Rental rates stood at $ Atlanta The Atlanta office market ended the quarter with a vacancy rate of 17.6%. The vacancy rate was up over the previous quarter, with net absorption totaling negative (590,194) square feet. Vacant sublease space increased to 2,993,713 square feet. Rental rates ended the third quarter at $18.88, a decrease over the previous quarter. A total of seven buildings with 48,543 square feet of space delivered to the market, with 327,198 square feet still under construction at the end of the quarter. Augusta/Richmond County With no new office space being delivered to the market, and negative (676) square feet of net absorption, Augusta/Richmond (4.9) 14.2 Deliveries COSTAR GROUP, INC. THE COSTAR OFFICE REPORT 3

9 NATIONAL THIRD QUARTER 2010 National Office Market OVERVIEW County s vacancy rate went from 10.4% to 10.4% in the quarter. Rental rates went from $12.44 to $12.21 during that time. At the end of the quarter, there was 21,922 square feet underway for future delivery. Austin The Austin office market ended the quarter with a vacancy rate of 14.5%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 215,479 square feet. Vacant sublease space decreased to 602,623 square feet. Rental rates ended the third quarter at $24.79, an increase over the previous quarter. A total of four buildings with 21,929 square feet of space delivered to the market, with 213,445 square feet still under construction at the end of the quarter. Bakersfield With no new office space being delivered to the market, and negative (86,829) square feet of net absorption, Bakersfield s vacancy rate went from 7.9% to 8.7% in the quarter. Rental rates went from $18.23 to $18.48 during that time. At the end of the quarter, there was 8,000 square feet underway for future delivery. Baltimore The Baltimore office market ended the quarter with a vacancy rate of 13.8%. The vacancy rate was up over the previous quarter, with net absorption totaling positive 358,703 square feet. Vacant sublease space decreased to 878,337 square feet. Rental rates ended the third quarter at $21.56, a decrease over the previous quarter. A total of seven buildings with 600,450 square feet of space delivered to the market, with 1,355,221 square feet still under construction at the end of the quarter. Baton Rouge With no new office space being delivered to the market, and positive 230,137 square feet of net absorption, Baton Rouge s vacancy rate went from 17.3% to 15.9% in the quarter. Rental rates went from $16.19 to $15.98 during that time. At the end of the quarter, there was 56,849 square feet underway for future delivery. Beaumont/Port Arthur The Beaumont/Port Arthur office market reported no new deliveries and no space under construction at the end of the third quarter With this limited construction activity, net absorption of negative (20,266) square feet caused the vacancy rate to up from 4.7%to 5.0% in the quarter. Rental rates stood at $ Birmingham The Birmingham office market ended the quarter with a vacancy rate of 11.0%. The vacancy rate was up over the previous quarter, with net absorption totaling negative (18,123) square feet. Vacant sublease space decreased to 225,488 square feet. Rental rates ended the third quarter at $16.63, a decrease over the previous quarter. A total of one building with 21,636 square feet of space delivered to the market, with 8,201 square feet still under construction at the end of the quarter. Boise City/Nampa The Boise City/Nampa office market ended the quarter with a vacancy rate of 12.8%. The vacancy rate was up over the previous quarter, with net absorption totaling positive 13,362 square feet. Vacant sublease space increased to 23,179 square feet. Rental rates ended the third quarter at $14.88, a decrease over the previous quarter. A total of one building with 132,350 square feet of space delivered to the market, with 100,000 square feet still under construction at the end of the quarter. Boston The vacancy rate remained unchanged in Boston in the third quarter. With 417,669 square feet in deliveries, and positive 382,969 square feet in net absorption, the vacancy rate held at 11.2%, the same rate reported in the previous quarter. The market had 1,947,983 square feet under construction at the end of the quarter, and rental rates stood at $21.27 per square foot. Bremerton/Silverdale The Bremerton/Silverdale office market reported no new deliveries and no space under construction at the end of the third quarter With this limited construction activity, net absorption of positive 19,380 square feet caused the vacancy rate to down from 10.9%to 10.4% in the quarter. Rental rates stood at $ Broward County The Broward County office market reported no new deliveries and no space under construction at the end of the third quarter With this limited construction activity, net absorption of positive 218,803 square feet caused the vacancy rate to down from 13.1%to 12.8% in the quarter. Rental rates stood at $ Brownsville/Harlingen The Brownsville/Harlingen office market reported no new deliveries and no space under construction at the end of the third quarter With this limited construction activity, net absorption of negative (10,753) square feet caused the vacancy rate to up from 9.0%to 9.5% in the quarter. Rental rates stood at $ Buffalo/Niagara Falls With no new office space being delivered to the market, and positive 4,362 square feet of net absorption, Buffalo/Niagara Falls s vacancy rate went from 9.5% to 9.5% in the quarter. Rental rates went from $14.82 to $14.88 during that time. At the end of the quarter, there was 39,605 square feet underway for future delivery. Charleston WV The Charleston WV office market reported no new deliver- 4 THE COSTAR OFFICE REPORT 2010 COSTAR GROUP, INC.

10 National Office Market OVERVIEW THIRD QUARTER 2010 NATIONAL ies and no space under construction at the end of the third quarter With this limited construction activity, net absorption of negative (7,469) square feet caused the vacancy rate to up from 5.7%to 5.8% in the quarter. Rental rates stood at $ Charleston/N Charleston The Charleston/N Charleston office market ended the quarter with a vacancy rate of 12.1%. The vacancy rate was up over the previous quarter, with net absorption totaling negative (104,785) square feet. Vacant sublease space decreased to 75,796 square feet. Rental rates ended the third quarter at $18.15, a decrease over the previous quarter. A total of one building with 20,000 square feet of space delivered to the market, with 9,000 square feet still under construction at the end of the quarter. Charlotte The Charlotte office market ended the quarter with a vacancy rate of 14.4%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 618,024 square feet. Vacant sublease space decreased to 494,473 square feet. Rental rates ended the third quarter at $18.76, a decrease over the previous quarter. A total of one building with 19,525 square feet of space delivered to the market, with 342,147 square feet still under construction at the end of the quarter. Chattanooga The Chattanooga office market reported no new deliveries and no space under construction at the end of the third quarter With this limited construction activity, net absorption of negative (44,933) square feet caused the vacancy rate to up from 10.3%to 10.7% in the quarter. Rental rates stood at $ Chicago The vacancy rate decreased in Chicago in the third quarter. With 238,200 square feet in deliveries, and positive 522,681 square feet in net absorption, the vacancy rate decreased to 16.0%, from 16.1% reported in the previous quarter. The market had 590,250 square feet under construction at the end of the quarter, and rental rates stood at $22.55 per square foot. Cincinnati The Cincinnati office market ended the quarter with a vacancy rate of 12.5%. The vacancy rate was up over the previous quarter, with net absorption totaling negative (191,935) square feet. Vacant sublease space decreased to 403,005 square feet. Rental rates ended the third quarter at $15.11, an increase over the previous quarter. A total of one building with 17,000 square feet of space delivered to the market, with 1,132,743 square feet still under construction at the end of the quarter. Cleveland The Cleveland office market ended the quarter with a vacancy rate of 12.5%. The vacancy rate was up over the previous quarter, with net absorption totaling negative (111,001) square feet. Vacant sublease space increased to 505,448 square feet. Rental rates ended the third quarter at $17.19, no change over the previous quarter. A total of one building with 16,000 square feet of space delivered to the market, with 384,616 square feet still under construction at the end of the quarter. Colorado Springs With no new office space being delivered to the market, and positive 117,794 square feet of net absorption, Colorado Springs s vacancy rate went from 17.1% to 16.7% in the quarter. Rental rates went from $15.03 to $15.51 during that time. At the end of the quarter, there was 13,000 square feet underway for future delivery. Columbia With no space currently under construction, Columbia absorbed 16,695 square feet of space and delivered 10,800 square feet of space, resulting in a vacancy rate that went from 10.0% to 10.0% over the course of the quarter. Rental rates went from $14.91 to $14.72 per square foot. Columbus The Columbus office market ended the quarter with a vacancy rate of 11.2%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 192,553 square feet. Vacant sublease space decreased to 333,783 square feet. Rental rates ended the third quarter at $15.85, an increase over the previous quarter. A total of one building with 92,000 square feet of space delivered to the market, with 381,099 square feet still under construction at the end of the quarter. Columbus GA The Columbus GA office market reported no new deliveries and no space under construction at the end of the third quarter With this limited construction activity, net absorption of negative (23,804) square feet caused the vacancy rate to up from 12.7%to 13.4% in the quarter. Rental rates stood at $ Corpus Christi The Corpus Christi office market reported no new deliveries and no space under construction at the end of the third quarter With this limited construction activity, net absorption of negative (19,787) square feet caused the vacancy rate to up from 9.6%to 9.9% in the quarter. Rental rates stood at $ Dallas/Ft Worth The Dallas/Ft Worth office market ended the quarter with a vacancy rate of 17.9%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 1,697,244 square feet. Vacant sublease space decreased to 2,409,014 square feet. Rental rates ended the third quarter at $19.38, a decrease over the previous quarter. A total of four buildings with 63,005 square feet of space delivered to the market, with 1,493,486 square feet still under construction at the end of the quarter COSTAR GROUP, INC. THE COSTAR OFFICE REPORT 5

11 NATIONAL THIRD QUARTER 2010 National Office Market OVERVIEW Davenport/Moline/Rock Island The Davenport/Moline/Rock Island office market reported no new deliveries and no space under construction at the end of the third quarter With this limited construction activity, net absorption of negative (68,554) square feet caused the vacancy rate to up from 12.4%to 13.5% in the quarter. Rental rates stood at $ Dayton The Dayton office market reported no new deliveries and no space under construction at the end of the third quarter With this limited construction activity, net absorption of positive 107,970 square feet caused the vacancy rate to down from 13.0%to 12.8% in the quarter. Rental rates stood at $ Deltona/Daytona Beach The Deltona/Daytona Beach office market reported no new deliveries and no space under construction at the end of the third quarter With this limited construction activity, net absorption of positive 2,497 square feet caused the vacancy rate to unchanged from 9.1%to 9.1% in the quarter. Rental rates stood at $ Denver The Denver office market ended the quarter with a vacancy rate of 14.5%. The vacancy rate was up over the previous quarter, with net absorption totaling positive 30,339 square feet. Vacant sublease space decreased to 1,446,274 square feet. Rental rates ended the third quarter at $19.97, an increase over the previous quarter. A total of four buildings with 393,596 square feet of space delivered to the market, with 784,800 square feet still under construction at the end of the quarter. Des Moines With no new office space being delivered to the market, and negative (259,875) square feet of net absorption, Des Moines s vacancy rate went from 7.5% to 8.4% in the quarter. Rental rates went from $13.21 to $13.29 during that time. At the end of the quarter, there was 587,558 square feet underway for future delivery. Detroit The vacancy rate remained unchanged in Detroit in the third quarter. With 80,775 square feet in deliveries, and positive 10,347 square feet in net absorption, the vacancy rate held at 18.9%, the same rate reported in the previous quarter. The market had 376,501 square feet under construction at the end of the quarter, and rental rates stood at $18.82 per square foot. Duluth The Duluth office market reported no new deliveries and no space under construction at the end of the third quarter With this limited construction activity, net absorption of negative (5,608) square feet caused the vacancy rate to up from 5.4%to 5.5% in the quarter. Rental rates stood at $ East Bay/Oakland With no new office space being delivered to the market, and negative (331,293) square feet of net absorption, East Bay/ Oakland s vacancy rate went from 12.3% to 12.6% in the quarter. Rental rates went from $22.52 to $22.32 during that time. At the end of the quarter, there was 28,559 square feet underway for future delivery. El Paso The El Paso office market ended the quarter with a vacancy rate of 7.7%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 411,619 square feet. Vacant sublease space decreased to 0 square feet. Rental rates ended the third quarter at $12.55, a decrease over the previous quarter. A total of six buildings with 424,171 square feet of space delivered to the market, with 33,473 square feet still under construction at the end of the quarter. Erie The Erie office market reported no new deliveries and no space under construction at the end of the third quarter With this limited construction activity, net absorption of negative (3,083) square feet caused the vacancy rate to unchanged from 3.7%to 3.7% in the quarter. Rental rates stood at $ Evansville The Evansville office market reported no new deliveries and no space under construction at the end of the third quarter With this limited construction activity, net absorption of positive 47,530 square feet caused the vacancy rate to down from 10.6%to 10.1% in the quarter. Rental rates stood at $ Fayetteville With no space currently under construction, Fayetteville absorbed (6,420) square feet of space and delivered 9,528 square feet of space, resulting in a vacancy rate that went from 9.6% to 9.9% over the course of the quarter. Rental rates went from $16.37 to $15.65 per square foot. Fayetteville/Springdale/Rogers With no new office space being delivered to the market, and negative (15,224) square feet of net absorption, Fayetteville/ Springdale/Rogers s vacancy rate went from 13.4% to 13.5% in the quarter. Rental rates went from $15.25 to $14.73 during that time. At the end of the quarter, there was 21,395 square feet underway for future delivery. Fort Smith The Fort Smith office market reported no new deliveries and no space under construction at the end of the third quarter With this limited construction activity, net absorption of positive 6 THE COSTAR OFFICE REPORT 2010 COSTAR GROUP, INC.

12 National Office Market OVERVIEW THIRD QUARTER 2010 NATIONAL 20,056 square feet caused the vacancy rate to down from 5.6%to 5.0% in the quarter. Rental rates stood at $ Fort Wayne The Fort Wayne office market reported no new deliveries and no space under construction at the end of the third quarter With this limited construction activity, net absorption of positive 47,692 square feet caused the vacancy rate to down from 9.9%to 9.6% in the quarter. Rental rates stood at $ Fresno The Fresno office market reported no new deliveries and no space under construction at the end of the third quarter With this limited construction activity, net absorption of positive 47,043 square feet caused the vacancy rate to down from 11.2%to 11.1% in the quarter. Rental rates stood at $ Green Bay With no space currently under construction, Green Bay absorbed 25,978 square feet of space and delivered 2,100 square feet of space, resulting in a vacancy rate that went from 11.4% to 11.2% over the course of the quarter. Rental rates went from $12.40 to $12.88 per square foot. Greensboro/Winston-Salem With no new office space being delivered to the market, and negative (15,435) square feet of net absorption, Greensboro/ Winston-Salem s vacancy rate went from 11.7% to 11.8% in the quarter. Rental rates went from $13.84 to $13.79 during that time. At the end of the quarter, there was 27,000 square feet underway for future delivery. Greenville/Spartanburg With no new office space being delivered to the market, and positive 189,138 square feet of net absorption, Greenville/ Spartanburg s vacancy rate went from 12.5% to 12.0% in the quarter. Rental rates went from $14.08 to $14.39 during that time. At the end of the quarter, there was 19,087 square feet underway for future delivery. Hampton Roads The Hampton Roads office market ended the quarter with a vacancy rate of 12.8%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 265,389 square feet. Vacant sublease space decreased to 173,240 square feet. Rental rates ended the third quarter at $17.70, a decrease over the previous quarter. A total of two buildings with 204,000 square feet of space delivered to the market, with 167,908 square feet still under construction at the end of the quarter. Hartford The Hartford office market saw vacancies fall and rental rates decrease from the second quarter 2010 to the third quarter The overall vacancy rate currently sits at 10.7%, from 10.8% in the previous quarter. Rental rates ended the quarter at $17.82 per square foot, from $17.86 in the previous quarter. There was a total of 20,800 square feet that delivered in the quarter, with 31,400 square feet still under construction at the end of the quarter. Hawaii The vacancy rate remained unchanged in Hawaii in the third quarter. With 13,067 square feet in deliveries, and positive 28,221 square feet in net absorption, the vacancy rate held at 5.4%, the same rate reported in the previous quarter. The market had 92,262 square feet under construction at the end of the quarter, and rental rates stood at $33.48 per square foot. Houston The vacancy rate remained unchanged in Houston in the third quarter. With 100,181 square feet in deliveries, and positive 210,600 square feet in net absorption, the vacancy rate held at 14.2%, the same rate reported in the previous quarter. The market had 2,167,880 square feet under construction at the end of the quarter, and rental rates stood at $22.76 per square foot. Huntington/Ashland With no new office space being delivered to the market, and negative (5,701) square feet of net absorption, Huntington/ Ashland s vacancy rate went from 4.0% to 4.1% in the quarter. Rental rates went from $10.03 to $11.46 during that time. At the end of the quarter, there was 3,000 square feet underway for future delivery. Huntsville With no new office space being delivered to the market, and positive 59,794 square feet of net absorption, Huntsville s vacancy rate went from 11.3% to 10.9% in the quarter. Rental rates went from $14.78 to $15.22 during that time. At the end of the quarter, there was 15,000 square feet underway for future delivery. Indianapolis With no new office space being delivered to the market, and positive 401,873 square feet of net absorption, Indianapolis s vacancy rate went from 11.9% to 11.5% in the quarter. Rental rates went from $17.34 to $17.17 during that time. At the end of the quarter, there was 103,405 square feet underway for future delivery. Inland Empire (California) The Inland Empire (California) office market saw vacancies rise and rental rates decrease from the second quarter 2010 to the third quarter The overall vacancy rate currently sits at 16.4%, from 16.2% in the previous quarter. Rental rates ended the quarter at $20.84 per square foot, from $21.19 in the previous quarter. There was a total of 4,000 square feet that delivered in 2010 COSTAR GROUP, INC. THE COSTAR OFFICE REPORT 7

13 NATIONAL THIRD QUARTER 2010 National Office Market OVERVIEW the quarter, with 285,275 square feet still under construction at the end of the quarter. Jackson The Jackson office market reported no new deliveries and no space under construction at the end of the third quarter With this limited construction activity, net absorption of negative (149,194) square feet caused the vacancy rate to up from 10.0%to 10.7% in the quarter. Rental rates stood at $ Jacksonville (Florida) The Jacksonville (Florida) office market ended the quarter with a vacancy rate of 15.5%. The vacancy rate was up over the previous quarter, with net absorption totaling negative (101,397) square feet. Vacant sublease space decreased to 184,829 square feet. Rental rates ended the third quarter at $18.06, an increase over the previous quarter. A total of one building with 10,124 square feet of space delivered to the market, with 48,763 square feet still under construction at the end of the quarter. Kansas City The Kansas City office market ended the quarter with a vacancy rate of 13.7%. The vacancy rate was up over the previous quarter, with net absorption totaling negative (198,634) square feet. Vacant sublease space decreased to 530,891 square feet. Rental rates ended the third quarter at $18.06, a decrease over the previous quarter. A total of two buildings with 10,850 square feet of space delivered to the market, with 99,422 square feet still under construction at the end of the quarter. Killeen/Temple/Fort Hood With no space currently under construction, Killeen/Temple/ Fort Hood absorbed (9,648) square feet of space and delivered 12,000 square feet of space, resulting in a vacancy rate that went from 9.7% to 10.8% over the course of the quarter. Rental rates went from $8.71 to $7.89 per square foot. Kingsport/Bristol/Bristol The Kingsport/Bristol/Bristol office market reported no new deliveries and no space under construction at the end of the third quarter With this limited construction activity, net absorption of positive 35,123 square feet caused the vacancy rate to down from 6.5%to 5.8% in the quarter. Rental rates stood at $ Knoxville The Knoxville office market ended the quarter with a vacancy rate of 10.1%. The vacancy rate was up over the previous quarter, with net absorption totaling negative (50,993) square feet. Vacant sublease space decreased to 100,143 square feet. Rental rates ended the third quarter at $15.24, a decrease over the previous quarter. A total of two buildings with 39,865 square feet of space delivered to the market, with 86,148 square feet still under construction at the end of the quarter. Lafayette The Lafayette office market reported no new deliveries and no space under construction at the end of the third quarter With this limited construction activity, net absorption of negative (55,195) square feet caused the vacancy rate to up from 8.1%to 9.2% in the quarter. Rental rates stood at $ Las Vegas The vacancy rate remained unchanged in Las Vegas in the third quarter. With 191,967 square feet in deliveries, and positive 181,045 square feet in net absorption, the vacancy rate held at 19.8%, the same rate reported in the previous quarter. The market had 874,872 square feet under construction at the end of the quarter, and rental rates stood at $22.02 per square foot. Lexington/Fayette The Lexington/Fayette office market reported no new deliveries and no space under construction at the end of the third quarter With this limited construction activity, net absorption of negative (30,387) square feet caused the vacancy rate to up from 11.7%to 11.9% in the quarter. Rental rates stood at $ Lincoln The Lincoln office market ended the quarter with a vacancy rate of 6.6%. The vacancy rate was up over the previous quarter, with net absorption totaling positive 21,710 square feet. Vacant sublease space stayed the same at 11,328 square feet. Rental rates ended the third quarter at $13.84, a decrease over the previous quarter. A total of one building with 39,510 square feet of space delivered to the market, with 190,825 square feet still under construction at the end of the quarter. Little Rock/N Little Rock The vacancy rate remained unchanged in Little Rock/N Little Rock in the third quarter. With 14,772 square feet in deliveries, and positive 22,083 square feet in net absorption, the vacancy rate held at 6.1%, the same rate reported in the previous quarter. The market had 61,000 square feet under construction at the end of the quarter, and rental rates stood at $13.62 per square foot. Long Island (New York) The Long Island (New York) office market saw vacancies rise and rental rates decrease from the second quarter 2010 to the third quarter The overall vacancy rate currently sits at 8.5%, from 8.4% in the previous quarter. Rental rates ended the quarter at $25.75 per square foot, from $25.77 in the previous quarter. There was a total of 53,000 square feet that delivered in the quarter, with 1,021,357 square feet still under construction at the end of the quarter. Los Angeles The Los Angeles office market ended the quarter with a vacancy rate of 12.3%. The vacancy rate was up over the previous quarter, with net absorption totaling negative (1,001,268) 8 THE COSTAR OFFICE REPORT 2010 COSTAR GROUP, INC.

14 National Office Market OVERVIEW THIRD QUARTER 2010 NATIONAL square feet. Vacant sublease space decreased to 3,358,476 square feet. Rental rates ended the third quarter at $27.93, a decrease over the previous quarter. A total of two buildings with 9,800 square feet of space delivered to the market, with 1,506,785 square feet still under construction at the end of the quarter. Louisville The Louisville office market saw vacancies rise and rental rates increase from the second quarter 2010 to the third quarter The overall vacancy rate currently sits at 12.1%, from 11.8% in the previous quarter. Rental rates ended the quarter at $15.96 per square foot, from $15.79 in the previous quarter. There was a total of 22,240 square feet that delivered in the quarter, with 3,838 square feet still under construction at the end of the quarter. Lubbock The vacancy rate remained unchanged in Lubbock in the third quarter. With 4,208 square feet in deliveries, and positive 14,347 square feet in net absorption, the vacancy rate held at 4.4%, the same rate reported in the previous quarter. The market had 16,047 square feet under construction at the end of the quarter, and rental rates stood at $12.09 per square foot. Madison The Madison office market reported no new deliveries and no space under construction at the end of the third quarter With this limited construction activity, net absorption of positive 32,331 square feet caused the vacancy rate to down from 9.1%to 9.0% in the quarter. Rental rates stood at $ Marin/Sonoma The Marin/Sonoma office market reported no new deliveries and no space under construction at the end of the third quarter With this limited construction activity, net absorption of negative (102,771) square feet caused the vacancy rate to up from 14.5%to 14.8% in the quarter. Rental rates stood at $ McAllen/Edinburg/Pharr The McAllen/Edinburg/Pharr office market reported no new deliveries and no space under construction at the end of the third quarter With this limited construction activity, net absorption of negative (6,250) square feet caused the vacancy rate to up from 11.0%to 11.1% in the quarter. Rental rates stood at $ Memphis With no new office space being delivered to the market, and positive 73,459 square feet of net absorption, Memphis s vacancy rate went from 12.2% to 12.0% in the quarter. Rental rates went from $16.34 to $16.09 during that time. At the end of the quarter, there was 67,300 square feet underway for future delivery. Miami-Dade County The Miami-Dade County office market ended the quarter with a vacancy rate of 14.2%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 366,945 square feet. Vacant sublease space decreased to 735,165 square feet. Rental rates ended the third quarter at $29.75, a decrease over the previous quarter. A total of two buildings with 174,000 square feet of space delivered to the market, with 985,882 square feet still under construction at the end of the quarter. Milwaukee With no new office space being delivered to the market, and negative (48,182) square feet of net absorption, Milwaukee s vacancy rate went from 10.7% to 10.8% in the quarter. Rental rates went from $15.96 to $15.96 during that time. At the end of the quarter, there was 238,159 square feet underway for future delivery. Minneapolis The vacancy rate remained unchanged in Minneapolis in the third quarter. With 37,000 square feet in deliveries, and positive 143,762 square feet in net absorption, the vacancy rate held at 8.9%, the same rate reported in the previous quarter. The market had 103,700 square feet under construction at the end of the quarter, and rental rates stood at $15.72 per square foot. Mobile With no new office space being delivered to the market, and negative (82,834) square feet of net absorption, Mobile s vacancy rate went from 9.0% to 9.6% in the quarter. Rental rates went from $13.31 to $13.27 during that time. At the end of the quarter, there was 2,885 square feet underway for future delivery. Montgomery With no new office space being delivered to the market, and positive 7,418 square feet of net absorption, Montgomery s vacancy rate went from 10.7% to 10.7% in the quarter. Rental rates went from $13.98 to $13.70 during that time. At the end of the quarter, there was 6,250 square feet underway for future delivery. Myrtle Beach/Conway With no new office space being delivered to the market, and positive 25,246 square feet of net absorption, Myrtle Beach/ Conway s vacancy rate went from 7.9% to 7.5% in the quarter. Rental rates went from $16.00 to $16.53 during that time. At the end of the quarter, there was 4,455 square feet underway for future delivery. Nashville The Nashville office market ended the quarter with a vacancy rate of 11.0%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 234,211 square feet. Vacant sublease space decreased to 528,935 square feet. Rental rates ended the third quarter at $18.82, a decrease over the previous quarter. A total of one building with 15,108 square feet of 2010 COSTAR GROUP, INC. THE COSTAR OFFICE REPORT 9

15 NATIONAL THIRD QUARTER 2010 National Office Market OVERVIEW space delivered to the market, with 226,314 square feet still under construction at the end of the quarter. New Orleans/Metairie/Kenner With no new office space being delivered to the market, and positive 112,455 square feet of net absorption, New Orleans/ Metairie/Kenner s vacancy rate went from 10.4% to 10.1% in the quarter. Rental rates went from $15.44 to $15.62 during that time. At the end of the quarter, there was 83,220 square feet underway for future delivery. New York City The New York City office market ended the quarter with a vacancy rate of 8.3%. The vacancy rate was up over the previous quarter, with net absorption totaling positive 439,446 square feet. Vacant sublease space decreased to 5,758,743 square feet. Rental rates ended the third quarter at $43.17, an increase over the previous quarter. A total of two buildings with 1,429,348 square feet of space delivered to the market, with 8,571,292 square feet still under construction at the end of the quarter. Northern New Jersey The Northern New Jersey office market saw vacancies rise and rental rates decrease from the second quarter 2010 to the third quarter The overall vacancy rate currently sits at 13.6%, from 13.4% in the previous quarter. Rental rates ended the quarter at $23.54 per square foot, from $23.70 in the previous quarter. There was a total of 114,556 square feet that delivered in the quarter, with 625,026 square feet still under construction at the end of the quarter. Ocala The Ocala office market reported no new deliveries and no space under construction at the end of the third quarter With this limited construction activity, net absorption of negative (100,727) square feet caused the vacancy rate to up from 8.8%to 11.3% in the quarter. Rental rates stood at $ Oklahoma City The Oklahoma City office market ended the quarter with a vacancy rate of 9.4%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 194,026 square feet. Vacant sublease space decreased to 82,937 square feet. Rental rates ended the third quarter at $14.32, an increase over the previous quarter. A total of one building with 15,893 square feet of space delivered to the market, with 1,979,300 square feet still under construction at the end of the quarter. Olympia The Olympia office market reported no new deliveries and no space under construction at the end of the third quarter With this limited construction activity, net absorption of negative (75,100) square feet caused the vacancy rate to up from 10.5%to 11.5% in the quarter. Rental rates stood at $ Omaha/Council Bluffs With no new office space being delivered to the market, and negative (136,175) square feet of net absorption, Omaha/Council Bluffs s vacancy rate went from 10.1% to 10.5% in the quarter. Rental rates went from $15.97 to $16.11 during that time. At the end of the quarter, there was 123,422 square feet underway for future delivery. Orange (California) With no new office space being delivered to the market, and positive 241,848 square feet of net absorption, Orange (California) s vacancy rate went from 16.1% to 15.9% in the quarter. Rental rates went from $24.10 to $23.48 during that time. At the end of the quarter, there was 373,583 square feet underway for future delivery. Orlando The vacancy rate remained unchanged in Orlando in the third quarter. With 39,700 square feet in deliveries, and negative (19,578) square feet in net absorption, the vacancy rate held at 15.4%, the same rate reported in the previous quarter. The market had 158,150 square feet under construction at the end of the quarter, and rental rates stood at $19.31 per square foot. Palm Beach County The Palm Beach County office market ended the quarter with a vacancy rate of 18.2%. The vacancy rate was up over the previous quarter, with net absorption totaling negative (60,117) square feet. Vacant sublease space decreased to 259,258 square feet. Rental rates ended the third quarter at $26.56, a decrease over the previous quarter. A total of one building with 6,973 square feet of space delivered to the market, with 485,950 square feet still under construction at the end of the quarter. Pensacola The Pensacola office market reported no new deliveries and no space under construction at the end of the third quarter With this limited construction activity, net absorption of positive 1,869 square feet caused the vacancy rate to down from 8.8%to 8.7% in the quarter. Rental rates stood at $ Peoria The Peoria office market reported no new deliveries and no space under construction at the end of the third quarter With this limited construction activity, net absorption of negative (19,530) square feet caused the vacancy rate to up from 5.7%to 5.9% in the quarter. Rental rates stood at $ Philadelphia The Philadelphia office market ended the quarter with a vacancy rate of 12.8%. The vacancy rate was up over the previous quarter, with net absorption totaling positive 245,885 square feet. Vacant sublease space decreased to 2,057,839 square feet. Rental rates ended the third quarter at $21.09, a decrease over 10 THE COSTAR OFFICE REPORT 2010 COSTAR GROUP, INC.

16 National Office Market OVERVIEW THIRD QUARTER 2010 NATIONAL the previous quarter. A total of six buildings with 372,054 square feet of space delivered to the market, with 383,798 square feet still under construction at the end of the quarter. Phoenix The Phoenix office market ended the quarter with a vacancy rate of 21.7%. The vacancy rate was up over the previous quarter, with net absorption totaling negative (77,701) square feet. Vacant sublease space decreased to 1,380,139 square feet. Rental rates ended the third quarter at $21.49, a decrease over the previous quarter. A total of three buildings with 75,897 square feet of space delivered to the market, with 550,008 square feet still under construction at the end of the quarter. Pittsburgh The Pittsburgh office market ended the quarter with a vacancy rate of 9.9%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 131,215 square feet. Vacant sublease space decreased to 268,419 square feet. Rental rates ended the third quarter at $18.63, an increase over the previous quarter. A total of one building with 9,400 square feet of space delivered to the market, with 178,000 square feet still under construction at the end of the quarter. Port St Lucie/Fort Pierce The Port St Lucie/Fort Pierce office market reported no new deliveries and no space under construction at the end of the third quarter With this limited construction activity, net absorption of negative (7,475) square feet caused the vacancy rate to up from 14.7%to 14.8% in the quarter. Rental rates stood at $ Portland The Portland office market ended the quarter with a vacancy rate of 11.7%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 156,841 square feet. Vacant sublease space decreased to 587,253 square feet. Rental rates ended the third quarter at $19.48, a decrease over the previous quarter. A total of one building with 7,500 square feet of space delivered to the market, with 70,923 square feet still under construction at the end of the quarter. Portland/South Portland The Portland/South Portland office market ended the quarter with a vacancy rate of 9.1%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 73,506 square feet. Vacant sublease space increased to 68,087 square feet. Rental rates ended the third quarter at $14.46, an increase over the previous quarter. A total of one building with 8,100 square feet of space delivered to the market, with 18,800 square feet still under construction at the end of the quarter. Providence The Providence office market saw vacancies fall and rental rates decrease from the second quarter 2010 to the third quarter The overall vacancy rate currently sits at 10.9%, from 11.3% in the previous quarter. Rental rates ended the quarter at $18.37 per square foot, from $18.59 in the previous quarter. There was a total of 10,000 square feet that delivered in the quarter, with 63,769 square feet still under construction at the end of the quarter. Raleigh/Durham The Raleigh/Durham office market ended the quarter with a vacancy rate of 13.2%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 369,606 square feet. Vacant sublease space decreased to 384,162 square feet. Rental rates ended the third quarter at $18.77, an increase over the previous quarter. A total of one building with 80,000 square feet of space delivered to the market, with 287,948 square feet still under construction at the end of the quarter. Reno/Sparks The Reno/Sparks office market reported no new deliveries and no space under construction at the end of the third quarter With this limited construction activity, net absorption of negative (43,433) square feet caused the vacancy rate to up from 17.7%to 18.0% in the quarter. Rental rates stood at $ Richmond VA The Richmond VA office market ended the quarter with a vacancy rate of 11.9%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 262,399 square feet. Vacant sublease space decreased to 336,060 square feet. Rental rates ended the third quarter at $16.54, a decrease over the previous quarter. A total of four buildings with 40,677 square feet of space delivered to the market, with 104,227 square feet still under construction at the end of the quarter. Roanoke The Roanoke office market reported no new deliveries and no space under construction at the end of the third quarter With this limited construction activity, net absorption of positive 17,869 square feet caused the vacancy rate to down from 8.4%to 8.2% in the quarter. Rental rates stood at $ Rochester With no new office space being delivered to the market, and negative (148,614) square feet of net absorption, Rochester s vacancy rate went from 9.4% to 9.7% in the quarter. Rental rates went from $13.36 to $13.38 during that time. At the end of the quarter, there was 112,460 square feet underway for future delivery. Sacramento The Sacramento office market ended the quarter with a vacancy rate of 16.8%. The vacancy rate was up over the previous quarter, with net absorption totaling negative (17,137) 2010 COSTAR GROUP, INC. THE COSTAR OFFICE REPORT 11

17 NATIONAL THIRD QUARTER 2010 National Office Market OVERVIEW square feet. Vacant sublease space increased to 428,885 square feet. Rental rates ended the third quarter at $21.45, a decrease over the previous quarter. A total of 12 buildings with 164,624 square feet of space delivered to the market, with 219,800 square feet still under construction at the end of the quarter. Salinas The Salinas office market reported no new deliveries and no space under construction at the end of the third quarter With this limited construction activity, net absorption of positive 4,160 square feet caused the vacancy rate to down from 8.0%to 7.9% in the quarter. Rental rates stood at $ Salt Lake City The Salt Lake City office market ended the quarter with a vacancy rate of 8.8%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 434,692 square feet. Vacant sublease space decreased to 119,766 square feet. Rental rates ended the third quarter at $16.51, a decrease over the previous quarter. A total of four buildings with 248,455 square feet of space delivered to the market, with 693,110 square feet still under construction at the end of the quarter. San Antonio The San Antonio office market ended the quarter with a vacancy rate of 11.0%. The vacancy rate was up over the previous quarter, with net absorption totaling positive 9,569 square feet. Vacant sublease space decreased to 155,246 square feet. Rental rates ended the third quarter at $18.52, a decrease over the previous quarter. A total of five buildings with 58,838 square feet of space delivered to the market, with 544,416 square feet still under construction at the end of the quarter. San Diego The San Diego office market ended the quarter with a vacancy rate of 15.3%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 432,900 square feet. Vacant sublease space decreased to 927,691 square feet. Rental rates ended the third quarter at $25.99, a decrease over the previous quarter. A total of three buildings with 379,238 square feet of space delivered to the market, with 59,176 square feet still under construction at the end of the quarter. San Francisco With no new office space being delivered to the market, and positive 48,504 square feet of net absorption, San Francisco s vacancy rate went from 13.6% to 13.5% in the quarter. Rental rates went from $29.46 to $30.03 during that time. At the end of the quarter, there was 526,952 square feet underway for future delivery. San Luis Obispo/Paso Robles The San Luis Obispo/Paso Robles office market reported no new deliveries and no space under construction at the end of the third quarter With this limited construction activity, net absorption of positive 5,177 square feet caused the vacancy rate to down from 5.4%to 5.3% in the quarter. Rental rates stood at $ Santa Barbara/Sta Maria/Goleta The Santa Barbara/Sta Maria/Goleta office market reported no new deliveries and no space under construction at the end of the third quarter With this limited construction activity, net absorption of positive 24,093 square feet caused the vacancy rate to down from 5.2%to 5.0% in the quarter. Rental rates stood at $ Santa Cruz/Watsonville The Santa Cruz/Watsonville office market reported no new deliveries and no space under construction at the end of the third quarter With this limited construction activity, net absorption of positive 7,533 square feet caused the vacancy rate to down from 8.6%to 8.5% in the quarter. Rental rates stood at $ Savannah The Savannah office market ended the quarter with a vacancy rate of 15.9%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 147,941 square feet. Vacant sublease space stayed the same at 16,042 square feet. Rental rates ended the third quarter at $16.95, a decrease over the previous quarter. A total of one building with 75,000 square feet of space delivered to the market, with 72,072 square feet still under construction at the end of the quarter. Seattle/Puget Sound The Seattle/Puget Sound office market ended the quarter with a vacancy rate of 13.0%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 620,796 square feet. Vacant sublease space decreased to 1,674,070 square feet. Rental rates ended the third quarter at $25.49, a decrease over the previous quarter. A total of five buildings with 274,068 square feet of space delivered to the market, with 2,263,500 square feet still under construction at the end of the quarter. Shreveport/Bossier City With no new office space being delivered to the market, and positive 59,627 square feet of net absorption, Shreveport/Bossier City s vacancy rate went from 14.7% to 14.0% in the quarter. Rental rates went from $11.59 to $11.48 during that time. At the end of the quarter, there was 7,200 square feet underway for future delivery. South Bay/San Jose The South Bay/San Jose office market ended the quarter with a vacancy rate of 14.0%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 770, THE COSTAR OFFICE REPORT 2010 COSTAR GROUP, INC.

18 National Office Market THIRD QUARTER 2010 NATIONAL square feet. Vacant sublease space decreased to 1,225,030 square feet. Rental rates ended the third quarter at $26.06, an increase over the previous quarter. A total of two buildings with 240,578 square feet of space delivered to the market, with 397,655 square feet still under construction at the end of the quarter. South Bend/Mishawaka The South Bend/Mishawaka office market reported no new deliveries and no space under construction at the end of the third quarter With this limited construction activity, net absorption of negative (16,979) square feet caused the vacancy rate to up from 12.4%to 12.7% in the quarter. Rental rates stood at $ Southwest Florida The Southwest Florida office market saw vacancies rise and rental rates decrease from the second quarter 2010 to the third quarter The overall vacancy rate currently sits at 16.7%, from 16.1% in the previous quarter. Rental rates ended the quarter at $16.54 per square foot, from $16.88 in the previous quarter. There was a total of 54,896 square feet that delivered in the quarter, with 75,644 square feet still under construction at the end of the quarter. Spokane With no new office space being delivered to the market, and positive 120,756 square feet of net absorption, Spokane s vacancy rate went from 9.7% to 9.1% in the quarter. Rental rates went from $15.85 to $15.80 during that time. At the end of the quarter, there was 35,000 square feet underway for future delivery. Springfield With no new office space being delivered to the market, and negative (87,207) square feet of net absorption, Springfield s vacancy rate went from 12.5% to 13.9% in the quarter. Rental rates went from $13.49 to $13.62 during that time. At the end of the quarter, there was 27,747 square feet underway for future delivery. St. Louis The vacancy rate remained unchanged in St. Louis in the third quarter. With 485,250 square feet in deliveries, and positive 405,405 square feet in net absorption, the vacancy rate held at 11.6%, the same rate reported in the previous quarter. The market had 567,726 square feet under construction at the end of the quarter, and rental rates stood at $18.21 per square foot. Stockton/Modesto The Stockton/Modesto office market reported no new deliveries and no space under construction at the end of the third quarter With this limited construction activity, net absorption of negative (113,124) square feet caused the vacancy rate to up from 15.3%to 16.0% in the quarter. Rental rates stood at $ Syracuse With no new office space being delivered to the market, and negative (6,933) square feet of net absorption, Syracuse s vacancy rate went from 8.1% to 8.1% in the quarter. Rental rates went from $13.00 to $14.79 during that time. At the end of the quarter, there was 167,366 square feet underway for future delivery. Tallahassee With no space currently under construction, Tallahassee absorbed 64,781 square feet of space and delivered 15,650 square feet of space, resulting in a vacancy rate that went from 7.5% to 7.2% over the course of the quarter. Rental rates went from $16.22 to $16.11 per square foot. Tampa/St Petersburg The Tampa/St Petersburg office market ended the quarter with a vacancy rate of 13.7%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 534,470 square feet. Vacant sublease space decreased to 649,967 square feet. Rental rates ended the third quarter at $19.44, a decrease over the previous quarter. A total of one building with 5,000 square feet of space delivered to the market, with 98,299 square feet still under construction at the end of the quarter. Toledo With no new office space being delivered to the market, and positive 53,497 square feet of net absorption, Toledo s vacancy rate went from 9.0% to 8.9% in the quarter. Rental rates went from $13.87 to $13.78 during that time. At the end of the quarter, there was 8,000 square feet underway for future delivery. Tucson The Tucson office market ended the quarter with a vacancy rate of 12.4%. The vacancy rate was up over the previous quarter, with net absorption totaling negative (70,714) square feet. Vacant sublease space increased to 82,237 square feet. Rental rates ended the third quarter at $19.17, a decrease over the previous quarter. A total of one building with 39,000 square feet of space delivered to the market, with 235,288 square feet still under construction at the end of the quarter. Tulsa The Tulsa office market ended the quarter with a vacancy rate of 13.9%. The vacancy rate was up over the previous quarter, with net absorption totaling negative (20,255) square feet. Vacant sublease space increased to 137,557 square feet. Rental rates ended the third quarter at $13.76, an increase over the previous quarter. A total of two buildings with 105,886 square feet of space delivered to the market, with 16,532 square feet still under construction at the end of the quarter. Utica/Rome With no new office space being delivered to the market, and 2010 COSTAR GROUP, INC. THE COSTAR OFFICE REPORT 13

19 NATIONAL THIRD QUARTER 2010 National Office Market positive 907 square feet of net absorption, Utica/Rome s vacancy rate went from 3.0% to 3.0% in the quarter. Rental rates went from $9.63 to $9.86 during that time. At the end of the quarter, there was 13,381 square feet underway for future delivery. Visalia/Porterville The Visalia/Porterville office market reported no new deliveries and no space under construction at the end of the third quarter With this limited construction activity, net absorption of positive 16,556 square feet caused the vacancy rate to down from 9.1%to 8.8% in the quarter. Rental rates stood at $ Washington The Washington office market ended the quarter with a vacancy rate of 13.1%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 1,260,185 square feet. Vacant sublease space decreased to 4,945,818 square feet. Rental rates ended the third quarter at $33.93, an increase over the previous quarter. A total of one building with 365,000 square feet of space delivered to the market, with 5,736,976 square feet still under construction at the end of the quarter. West Michigan The West Michigan office market saw vacancies fall and rental rates increase from the second quarter 2010 to the third quarter The overall vacancy rate currently sits at 12.4%, from 12.6% in the previous quarter. Rental rates ended the quarter at $12.91 per square foot, from $12.63 in the previous quarter. There was a total of 90,000 square feet that delivered in the quarter, with 97,000 square feet still under construction at the end of the quarter. Wichita The Wichita office market reported no new deliveries and no space under construction at the end of the third quarter With this limited construction activity, net absorption of positive 67,360 square feet caused the vacancy rate to down from 10.0%to 9.7% in the quarter. Rental rates stood at $ Wilmington The Wilmington office market ended the quarter with a vacancy rate of 9.5%. The vacancy rate was up over the previous quarter, with net absorption totaling negative (32,753) square feet. Vacant sublease space decreased to 14,242 square feet. Rental rates ended the third quarter at $15.92, a decrease over the previous quarter. A total of one building with 4,246 square feet of space delivered to the market, with 11,385 square feet still under construction at the end of the quarter. Yakima The Yakima office market reported no new deliveries and no space under construction at the end of the third quarter With this limited construction activity, net absorption of positive 11,114 square feet caused the vacancy rate to down from 5.4%to 5.2% in the quarter. Rental rates stood at $ Youngstown/Warren/Boardman The Youngstown/Warren/Boardman office market reported no new deliveries and no space under construction at the end of the third quarter With this limited construction activity, net absorption of negative (39,991) square feet caused the vacancy rate to up from 6.3%to 6.6% in the quarter. Rental rates stood at $ THE COSTAR OFFICE REPORT 2010 COSTAR GROUP, INC.

20 National Office Market EMPLOYMENT AND TENANT THIRD QUARTER 2010 NATIONAL Total Employment by Industry Percent of Total Employment by Industry Total Employment Growth Total Number of Jobs Added Per Year 17% 4% 10% 4% 1% 15% 9% 19% 2% 6% 13% Natural Resources & Mining Construction Manufacturing Trade, Transportation & Utilities Information Financial Activities Professional & Business Services Education & Health Services Leisure & Hospitality Other Services Government Percent Growth 3.0% 2.0% 1.0% 0.0% -1.0% -2.0% -3.0% -4.0% -5.0% -6.0% Source: Department of Labor, Bureau of Labor Statistics Office* Employment Growth Cumulative Growth in Office* Jobs Over the Past 5 Years Market Employment Growth Inventory Growth Difference Atlanta -9.70% 6.00% % Boston -3.20% 2.60% -5.80% Chicago % 3.40% % Dallas/Ft Worth -0.90% 6.20% -7.10% Denver -4.50% 4.60% -9.10% Los Angeles % 2.70% % New York City -3.90% 1.60% -5.50% Seattle/Puget Sound -4.00% 8.60% % Tampa/St Petersburg % 6.40% % Washington -2.70% 7.40% % Source: Department of Labor, Bureau of Labor Statistics. * Office employment is defined as jobs in the Information, Financial Activities, and Professional & Business Services industries Historical Unemployment Rates Source: Department of Labor, Bureau of Labor Statistics Office* Employment Growth Number of Office* Jobs Added Per Year Percent Growth 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% -1.0% -2.0% -3.0% -4.0% -5.0% -6.0% -7.0% -8.0% Source: Department of Labor, Bureau of Labor Statistics. * Office employment is defined as jobs in the Information, Financial Activities, and Professional & Business Services industries 12.0% 10.0% Percent Unemployment 8.0% 6.0% 4.0% 2.0% 0.0% Source: Department of Labor, Bureau of Labor Statistics COSTAR GROUP, INC. THE COSTAR OFFICE REPORT 15

21 NATIONAL THIRD QUARTER 2010 National Office Market EMPLOYMENT AND TENANT Tenant Firms by Size Range Based on Total Occupied Square Footage Tenant Lease Expiration Based on Total Occupied Square Footage 75,000 SF & Up 2.0% % 50,000-74,999 SF 1.2% % 25,000-49,999 SF 3.5% % 10,000-24,999 SF 10.3% % 5,000-9,999 SF 13.1% 2,500-4,999 SF 20.4% % Up to 2,499 SF 49.7% % 0% 10% 20% 30% 40% 50% 60% 0% 2% 4% 6% 8% 10% 12% 14% Percentage of Tenants Percentage of Tenants Source: CoStar Tenant Source: CoStar Tenant Tenants by Industry SF Per Employee by Industry Based on Total Occupied Square Footage Based on Total Occupied Square Footage Finance/Ins/RE 22.0% Law Firms Services 13.9% Government Business-Service 11.7% Services Manufacturing 11.2% Manufacturing Law Firms 8.9% Retailers/Wholes Medical 6.5% Agri/Mining/Util Retailers/Wholes 6.1% Medical Government 5.8% Accountants Communications 4.0% Engineers/Archit Agri/Mining/Util 3.6% Finance/Ins/RE Engineers/Archit 3.3% Communications Accountants 1.7% Business-Service Transportation 1.4% Transportation % 5% 10% 15% 20% 25% Percentage of Tenants SF Per Employee Source: CoStar Tenant Source: CoStar Tenant 16 THE COSTAR OFFICE REPORT 2010 COSTAR GROUP, INC.

22 National Office Market INVENTORY & DEVELOPMENT THIRD QUARTER 2010 NATIONAL Historical Deliveries Millions SF Deliveries Average Delivered SF Source: CoStar Property * Future deliveries based on current under construction buildings. Construction Activity Markets Ranked by Under Construction Square Footage Under Construction Inventory Average Bldg Size Market # Bldgs Total RBA Preleased SF Preleased % All Existing U/C New York City 8 8,571,292 1,194, % 142,550 1,071,411 Washington 22 5,736,976 4,249, % 47, ,772 Seattle/Puget Sound 13 2,263,500 1,815, % 24, ,115 Houston 8 2,167,880 1,042, % 52, ,985 Oklahoma City 3 1,979,300 1,978, % 15, ,767 Boston 15 1,947,983 1,117, % 32, ,866 Los Angeles 30 1,506, , % 25,188 50,226 Dallas/Ft Worth 23 1,493,486 1,189, % 35,450 64,934 Baltimore 22 1,355, , % 22,323 61,601 Cincinnati 10 1,132, , % 20, ,274 Long Island (New York) 16 1,021, , % 19,294 63,835 Miami-Dade County 6 985, , % 23, ,314 Las Vegas , , % 15,583 54,679 Denver , , % 26,299 41,305 Westchester/So Connecticut 8 769, , % 25,144 96,227 Salt Lake City 9 693, , % 19,644 77,012 Northern New Jersey , , % 24,017 31,251 Chicago , , % 37,636 59,025 Des Moines 3 587, , % 34, ,853 St. Louis 4 567, , % 25, ,931 Phoenix , , % 19,442 42,308 San Antonio , , % 21,828 25,925 San Francisco 4 526, , % 43, ,738 Palm Beach County 9 485, , % 19,921 53,994 South Bay/San Jose 4 397, , % 23,726 99,414 Cleveland 5 384, , % 24,640 76,923 Philadelphia , , % 21,418 38,380 Columbus 5 381, , % 23,818 76,220 Detroit 7 376, , % 24,701 53,786 Orange (California) 7 373, , % 25,899 53,369 Charlotte 4 342, , % 19,713 85,537 Atlanta , , % 21,664 21,813 Raleigh/Durham , , % 20,955 23,996 Inland Empire (California) ,275 38, % 11,971 20,377 Milwaukee 4 238, , % 22,613 59,540 Tucson 4 235, , % 9,699 58,822 Nashville 6 226,314 83, % 18,006 37,719 Sacramento 3 219, % 20,468 73,267 Austin ,445 50, % 23,967 17,787 Lincoln 4 190, , % 20,539 47,706 Pittsburgh 4 178,000 17, % 20,245 44,500 Hampton Roads ,908 82, % 15,216 13,992 Syracuse 3 167, , % 20,157 55,789 Orlando 6 158, , % 14,192 26,358 Totals ,586,190 24,263, % 22,292 81,550 Source: CoStar Property 2010 COSTAR GROUP, INC. THE COSTAR OFFICE REPORT 17

23 NATIONAL THIRD QUARTER 2010 National Office Market INVENTORY & DEVELOPMENT Historical Construction Starts & Deliveries* Square Footage Per Quarter Starting and Completing Construction Construction Starts 44.4 Deliveries Millions SF q q q q q q q q q 2010 Source: CoStar Property * Excludes markets - see Methodology page. Recent Deliveries by Project Size Breakdown of Year-to-Date Development Based on RBA of Project Building Size # Bldgs RBA SF Leased % Leased Avg Rate Single Tenant Multi-Tenant < 50,000 SF 503 6,929,412 3,888, % $ ,725 5,989,687 50,000 SF - 99,999 SF 50 3,477,381 2,271, % $ ,345 2,897, ,000 SF - 249,999 SF 64 9,877,649 7,378, % $ ,013,010 6,864, ,000 SF - 499,999 SF 25 8,599,048 5,583, % $ ,413,508 7,185,540 >= 500,000 SF 11 8,427,355 5,199, % $ ,114,088 6,313,267 Source: CoStar Property Recent Deliveries Leased & Un-Leased SF in Deliveries Last 5 Years Future Deliveries Preleased & Un-Leased SF in Properties Scheduled to Deliver Leased Un-Leased 14.0 Preleased Un-Leased Millions SF Millions SF q q THE COSTAR OFFICE REPORT 2010 COSTAR GROUP, INC.

24 National Office Market INVENTORY & DEVELOPMENT THIRD QUARTER 2010 NATIONAL Growth in Inventory Last 5 Years - Select Regions Based on Percentage Growth in Inventory From Third Quarter 2005 Through Third Quarter 2010 Including Current Under Construction Square Footage 3rd Qtr rd Qtr 2005 Increase in Inventory Rank Region # Bldgs Existing RBA U/C RBA Total RBA # Bldgs Total RBA # Bldgs Total RBA % 1 Las Vegas 3,723 58,013, ,872 58,888,731 3,336 49,261, ,627,461 20% 2 Inland Empire (California) 5,565 66,620, ,275 66,906,207 5,051 56,612, ,293,346 18% 3 Fayetteville/Springdale/ ,685,016 21,395 10,706, ,244, ,461,797 16% Rogers 4 Phoenix 7, ,391, , ,941,230 7, ,851, ,089,418 15% 5 San Antonio 2,935 64,064, ,416 64,608,564 2,728 56,790, ,818,061 14% 6 Southwest Florida 2,988 30,865,550 75,644 30,941,194 2,770 27,389, ,551,697 13% 7 Raleigh/Durham 3,904 81,808, ,948 82,096,323 3,705 73,337, ,759,152 12% 8 Wilmington 1,511 11,375,451 11,385 11,386,836 1,437 10,182, ,204,298 12% 9 Palm Beach County 2,704 53,867, ,950 54,353,296 2,588 48,859, ,494,105 11% 10 Austin 3,355 80,410, ,445 80,624,307 3,135 72,553, ,070,505 11% 11 Salt Lake City 4,103 80,601, ,110 81,294,332 3,900 73,234, ,060,191 11% 12 Charlotte 4,644 91,548, ,147 91,891,049 4,413 82,825, ,065,804 11% 13 Orlando 6,641 94,249, ,150 94,408,146 6,286 85,437, ,970,652 10% 14 Stockton/Modesto 1,289 15,399, ,399,608 1,232 13,957, ,442,412 10% 2010 COSTAR GROUP, INC. THE COSTAR OFFICE REPORT 19

25 NATIONAL THIRD QUARTER 2010 National Office Market INVENTORY & DEVELOPMENT 20 THE COSTAR OFFICE REPORT 2010 COSTAR GROUP, INC.

26 National Office Market INVENTORY & DEVELOPMENT THIRD QUARTER 2010 NATIONAL 2010 COSTAR GROUP, INC. THE COSTAR OFFICE REPORT 21

27 NATIONAL THIRD QUARTER 2010 National Office Market FIGURES AT A GLANCE Class A Market Statistics Third Quarter 2010 Existing Inventory Vacancy YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Albany/Schenect 78 8,330, , , % 27, ,000 0 $17.41 Albuquerque 24 4,111, , , % (31,819) 0 0 $18.83 Anchorage 16 2,519, , , % 118, ,595 0 $34.57 Asheville ,920 90,587 90, % (8,151) 0 0 $22.66 Atlanta ,434,215 20,250,269 22,324, % 274,419 1,813, ,500 $21.65 Augusta/Richmo ,761 86,286 86, % 10, $17.69 Austin ,202,240 5,383,842 5,852, % 326, ,000 $28.08 Bakersfield 17 1,325, , , % 13,445 31,262 0 $21.91 Baltimore ,024,990 6,785,668 7,347, % 474, , ,168 $25.14 Baton Rouge 16 2,342, , , % 4, $22.19 Beaumont/Port A 5 770, , , % 10, $18.24 Birmingham 77 12,171,871 1,212,770 1,308, % 17, $20.88 Boise City/Namp 16 3,927, , , % 131, ,350 0 $18.03 Boston ,051,906 16,983,811 18,632, % 84,563 1,373,593 1,879,775 $27.25 Bremerton/Silver % $0.00 Broward County ,225,398 2,828,997 3,031, % 14, ,260 0 $29.30 Brownsville/Harl 1 28,574 27,089 27, % (3,608) 0 0 $18.00 Buffalo/Niagara 59 8,739, , , % (43,665) 0 0 $18.05 Charleston WV 8 741,867 23,669 23, % $19.09 Charleston/N Ch 72 5,284, , , % 109, $20.93 Charlotte ,544,774 5,351,131 5,651, % 803,586 2,050, ,310 $22.08 Chattanooga 10 1,047, , , % (788) 0 0 $22.43 Chicago ,309,688 26,904,296 30,603, % 303, , ,750 $26.78 Cincinnati ,553,628 3,877,467 4,034, % (29,915) 0 1,090,207 $17.82 Cleveland ,418,947 2,582,814 2,691, % (110,677) 45, ,000 $21.35 Colorado Springs 55 5,599,989 1,080,512 1,142, % 61, $18.26 Columbia 42 5,771,526 1,060,902 1,070, % (48,873) 0 0 $16.78 Columbus ,156,785 3,068,539 3,231, % 34,271 92, ,000 $18.39 Columbus GA 4 303, % $0.00 Corpus Christi 4 1,189,157 99, , % 69, $17.47 Dallas/Ft Worth ,696,600 21,806,011 23,250, % (63,999) 1,369, ,517 $22.28 Davenport/Molin 2 62,564 7,362 7, % $17.00 Dayton 55 5,482, , , % 15, $18.94 Deltona/Dayton 3 221,665 84,909 84, % 1, $18.20 Denver ,926,794 7,661,664 8,570, % 1,400,939 1,070, ,043 $24.08 Des Moines 47 8,546, , , % (73,681) 0 550,000 $16.05 Detroit ,219,467 6,841,193 7,227, % (374,377) 54, ,107 $22.10 Duluth 10 1,049,402 65,975 65, % (4,308) 0 0 $18.66 East Bay/Oaklan ,956,890 3,349,774 3,639, % (509,624) 0 0 $28.33 El Paso 4 1,043, , , % (20,618) 0 0 $14.00 Erie 4 645,764 45,000 45, % $0.00 Evansville 9 1,762, , , % (4,633) 0 0 $12.63 Fayetteville 6 357,954 87,647 87, % (31,349) 0 0 $20.76 Fayetteville/Sprin 18 1,605, , , % 131, $19.63 Fort Smith % $0.00 Fort Wayne 17 2,275, , , % 21, $16.77 Fresno 23 2,507, , , % (70,943) 0 0 $25.45 Green Bay 9 908,034 78, , % 61,000 59,000 0 $16.08 Source: CoStar Property 22 THE COSTAR OFFICE REPORT 2010 COSTAR GROUP, INC.

28 National Office Market FIGURES AT A GLANCE THIRD QUARTER 2010 NATIONAL Class A Market Statistics Third Quarter 2010 Existing Inventory Vacancy YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Greensboro/Win 62 7,587, ,486 1,027, % 50,894 25,000 0 $17.19 Greenville/Sparta 66 6,492,755 1,051,468 1,141, % (176,279) 107,280 0 $20.74 Hampton Roads ,818,992 2,160,204 2,246, % 278, ,887 0 $21.43 Hartford 70 18,074,821 2,291,663 2,355, % (184,596) 43,000 0 $20.69 Hawaii 40 9,372, , , % 205, ,118 0 $38.74 Houston ,840,005 15,561,133 16,714, % (206,456) 103,681 2,073,237 $28.84 Huntington/Ash 8 797,181 38,897 38, % 4, $14.50 Huntsville 15 1,253, , , % 15, $22.90 Indianapolis ,033,810 3,604,274 3,786, % 1, $19.12 Inland Empire (C 112 8,431,586 2,448,179 2,515, % 76,203 46, ,000 $26.84 Jackson 39 4,458, , , % (230,177) 0 0 $19.71 Jacksonville (Flor 95 16,398,226 2,330,539 2,417, % 178, $20.15 Kansas City ,391,914 3,935,563 4,236, % 71, ,422 $21.23 Killeen/Temple/F % $0.00 Kingsport/Bristol 1 40,148 7,477 7, % $15.84 Knoxville 22 3,192, , , % 196, ,067 0 $18.77 Lafayette 4 190,860 24,586 24, % (13,911) 0 0 $23.99 Las Vegas 79 8,774,219 2,239,534 2,283, % (100,728) 0 310,000 $30.51 Lexington/Fayet 61 3,117, , , % (43,171) 30,000 0 $19.08 Lincoln 12 2,359,584 61,387 61, % (5,993) 0 0 $15.48 Little Rock/N Litt 10 1,691,347 20,177 20, % 2, ,000 $15.75 Long Island (New ,295,783 3,326,373 4,172, % (130,352) 30, ,516 $30.71 Los Angeles 1, ,673,982 26,663,430 28,981, % (1,532,741) 289,520 1,258,114 $31.00 Louisville ,453,373 1,529,836 1,716, % 89, ,391 0 $20.20 Lubbock 6 551,848 16,006 16, % 10, $15.67 Madison 55 5,798, , , % 26, $20.23 Marin/Sonoma 40 3,073, , , % 14, $26.77 McAllen/Edinbur 2 395, , , % 1, $20.84 Memphis 79 10,269,774 1,208,571 1,268, % 4,991 49,600 0 $19.79 Miami-Dade Cou ,309,876 5,371,489 5,724, % 441,920 1,950, ,162 $36.59 Milwaukee 88 13,345,132 1,644,050 1,671, % (66,241) 0 0 $19.62 Minneapolis ,164,002 3,848,137 4,084, % 418, ,108 0 $18.63 Mobile 11 1,639, , , % 1, $18.23 Montgomery 8 741,699 50,567 58, % 29, $18.62 Myrtle Beach/Co 3 322,030 30,241 30, % 9, $19.39 Nashville ,405,170 2,238,117 2,613, % 57, ,737 0 $21.86 New Orleans/M 28 10,905, , , % (2,813) 0 0 $18.65 New York City ,272,430 23,589,908 28,038, % (2,298,393) 1,429,348 8,505,786 $49.40 Northern New Je ,234,245 21,423,989 24,473, % (294,644) 140, ,696 $26.37 Ocala 3 140, , , % (95,896) 0 0 $15.92 Oklahoma City 30 4,686, , , % 21, ,800,000 $18.64 Olympia 1 210, % $0.00 Omaha/Council 57 8,456, , , % 97,076 95,000 63,000 $20.03 Orange (Californ ,394,046 9,426,808 10,008, % 202, $25.45 Orlando ,870,843 4,229,460 4,769, % (517,386) 22, ,000 $22.26 Palm Beach Cou ,358,989 2,791,708 2,949, % 61, , ,950 $31.89 Pensacola 6 314, % $22.00 Peoria 6 846,261 63,839 63, % (620) 0 0 $13.03 Source: CoStar Property 2010 COSTAR GROUP, INC. THE COSTAR OFFICE REPORT 23

29 NATIONAL THIRD QUARTER 2010 National Office Market FIGURES AT A GLANCE Class A Market Statistics Third Quarter 2010 Existing Inventory Vacancy YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Philadelphia ,340,483 15,904,548 17,073, % (840,542) 591, ,000 $24.75 Phoenix ,701,390 9,852,950 10,643, % 225,752 1,243, ,070 $24.80 Pittsburgh ,597,949 3,268,161 3,392, % 879, , ,000 $21.71 Port St Lucie/For , , , % 34, $17.27 Portland ,817,866 3,267,242 3,475, % (5,987) 368,800 62,200 $23.69 Portland/South P 33 3,175, , , % (39,472) 0 0 $19.21 Providence 32 6,696,430 1,080,870 1,083, % (145,081) 0 30,769 $23.06 Raleigh/Durham ,020,150 4,430,939 4,666, % 529, , ,044 $21.59 Reno/Sparks 16 1,224, , , % (849) 0 0 $20.06 Richmond VA ,773,816 2,568,118 2,839, % 581, ,000 0 $19.04 Roanoke 6 769,895 22,419 22, % $23.01 Rochester 41 8,959, , , % (48,723) 0 0 $17.35 Sacramento ,779,586 4,868,914 5,062, % (54,458) 80, ,000 $25.23 Salinas % $0.00 Salt Lake City ,848,198 1,946,730 2,005, % 255, , ,500 $22.43 San Antonio 65 10,172,996 1,632,073 1,691, % 224, , ,250 $21.20 San Diego ,596,796 5,578,465 6,025, % 859, ,225 0 $30.98 San Francisco ,369,901 9,364,506 11,006, % (384,947) 112, ,097 $30.80 San Luis Obispo/ % $0.00 Santa Barbara/St 2 102,200 10,232 10, % 24, $24.24 Santa Cruz/Wats % $0.00 Savannah 8 294,808 92,752 92, % 8, ,072 $22.48 Seattle/Puget So ,007,187 8,603,598 9,273, % 1,228,870 1,520,085 1,909,179 $30.50 Shreveport/Boss 4 641,525 20,327 20, % 15, $12.13 South Bay/San Jo ,088,224 5,279,527 5,575, % 455, $30.83 South Bend/Mish 15 1,239, , , % (8,410) 0 0 $18.53 Southwest Florid 72 3,959, , , % 39,265 40,606 0 $22.45 Spokane 10 1,372, , , % 35, $21.34 Springfield 6 785,193 80,108 80, % (19,357) 0 0 $18.29 St. Louis ,132,916 4,273,460 4,545, % 198, , ,000 $21.90 Stockton/Modes 15 1,160, , , % 16, $21.22 Syracuse 29 4,080, , , % 31,304 60, ,366 $17.55 Tallahassee 7 560,342 90,868 90, % (19,502) 0 0 $24.66 Tampa/St Peters ,133,059 4,924,393 5,196, % 137, ,000 $23.43 Toledo 18 3,060, , , % 15, $18.15 Tucson 20 2,526, , , % (13,851) 0 170,000 $22.68 Tulsa 21 6,629, , , % (46,997) 95,386 0 $15.71 Utica/Rome 3 283, % $0.00 Visalia/Porterville % $0.00 Washington 1, ,502,610 34,092,806 37,919, % 4,432,269 3,970,955 5,612,683 $38.17 West Michigan 77 8,456, , , % 134, ,300 88,000 $19.91 Westchester/So ,883,320 7,476,237 8,570, % (480,058) 174, ,494 $32.34 Wichita 9 1,322,237 88,953 88, % (5,331) 0 0 $13.67 Wilmington , , , % 10,515 69,525 0 $22.25 Yakima % $0.00 Youngstown/Wa 8 602, , , % 92, ,000 0 $13.75 Totals 16,806 3,090,900, ,398, ,101, % 8,115,806 27,426,097 36,630,984 $26.78 Source: CoStar Property 24 THE COSTAR OFFICE REPORT 2010 COSTAR GROUP, INC.

30 National Office Market FIGURES AT A GLANCE THIRD QUARTER 2010 NATIONAL Class B Market Statistics Third Quarter 2010 Existing Inventory Vacancy YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Albany/Schenect 1,595 33,295,223 2,476,010 2,505, % (369,909) 0 12,000 $14.75 Albuquerque 1,566 22,699,835 2,909,148 3,003, % (5,857) 264,955 47,000 $16.32 Anchorage 239 7,652, , , % (83,224) 0 0 $24.38 Asheville 713 7,423, , , % (57,817) 43,088 0 $14.82 Atlanta 5, ,812,416 18,793,482 19,665, % (517,089) 92, ,698 $16.68 Augusta/Richmo 670 6,387, , , % 85,284 27,030 21,922 $12.21 Austin 1,489 36,125,486 4,778,728 4,898, % 312,331 65, ,445 $21.60 Bakersfield 434 6,206, , , % (120,582) 20,727 8,000 $19.26 Baltimore 2,577 59,254,293 7,228,986 7,528, % 277, , ,053 $19.82 Baton Rouge 408 5,304,626 1,124,605 1,130, % (19,652) 5,866 56,849 $16.07 Beaumont/Port A 81 2,240, , , % (12,639) 0 0 $13.80 Birmingham ,571,612 1,827,033 1,913, % 23,199 27,958 8,201 $16.06 Boise City/Namp 1,064 16,856,787 2,335,884 2,351, % (66,988) 36, ,000 $15.12 Boston 4, ,709,185 16,342,856 17,346, % (263,667) 76,908 68,208 $19.43 Bremerton/Silver 112 1,992, , , % 43, $19.39 Broward County 1,173 32,818,060 4,181,525 4,456, % 341,822 24,737 0 $22.05 Brownsville/Harl 118 1,558, , , % (44,517) 0 0 $14.56 Buffalo/Niagara ,850,481 2,063,410 2,083, % (54,968) 0 39,605 $14.17 Charleston WV 553 8,925, , , % (90,125) 0 0 $14.64 Charleston/N Ch 1,167 11,404,475 1,457,102 1,485, % 77,536 65,696 9,000 $17.37 Charlotte 1,897 41,111,416 5,883,121 6,026, % 83, ,205 17,837 $17.40 Chattanooga 254 6,509, , , % (31,224) 54,000 0 $14.12 Chicago 5, ,010,183 29,540,505 31,255, % (24,861) 268,555 79,500 $20.15 Cincinnati ,324,979 4,545,097 4,780, % 36, ,134 42,536 $14.25 Cleveland 1,716 66,111,332 9,523,087 9,737, % 194,940 38, ,616 $17.09 Colorado Springs ,051,359 2,997,992 3,078, % 236, ,000 $15.01 Columbia 1,352 20,907,097 1,630,766 1,654, % (47,084) 13,193 0 $13.96 Columbus 1,133 35,575,356 4,162,625 4,285, % 132,484 6,300 56,099 $15.27 Columbus GA 132 2,470, , , % 56,645 2,950 0 $13.00 Corpus Christi 341 6,227, , , % (155,389) 0 0 $13.64 Dallas/Ft Worth 4, ,311,151 29,341,615 30,259, % 607, , ,969 $17.71 Davenport/Molin 197 4,154, , , % (19,853) 0 0 $11.19 Dayton ,756,739 2,028,827 2,101, % (152,853) 4,000 0 $15.38 Deltona/Dayton 984 7,811, , , % 40, $13.83 Denver 3,704 99,574,282 14,713,438 15,234, % (413,111) 32, ,757 $18.20 Des Moines ,440,303 1,449,158 1,485, % 55,963 12,000 37,558 $12.31 Detroit 2,940 96,375,435 20,814,907 21,352, % (298,429) 82, ,394 $18.45 Duluth 61 2,660, , , % (16,668) 0 0 $13.04 East Bay/Oaklan 1,842 56,102,418 8,104,174 8,513, % 38, ,681 28,559 $21.68 El Paso 425 6,429, , , % 430, ,810 33,473 $14.18 Erie 197 3,463, , , % (6,414) 0 0 $10.55 Evansville 387 6,323, , , % (29,567) 0 0 $9.78 Fayetteville 496 3,892, , , % 73,737 19,476 0 $15.53 Fayetteville/Sprin 399 6,398, , , % 27,483 4,957 21,395 $14.88 Fort Smith 255 2,940,413 82,655 85, % 50,808 3,000 0 $10.08 Fort Wayne 367 7,962,122 1,125,910 1,127, % 75, $13.47 Fresno ,753,406 1,953,648 2,017, % (70,964) 16,000 0 $18.77 Green Bay 477 8,509, , , % (17,790) 8,400 0 $13.56 Source: CoStar Property 2010 COSTAR GROUP, INC. THE COSTAR OFFICE REPORT 25

31 NATIONAL THIRD QUARTER 2010 National Office Market FIGURES AT A GLANCE Class B Market Statistics Third Quarter 2010 Existing Inventory Vacancy YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Greensboro/Win ,654,689 3,128,843 3,178, % 130,582 64,505 27,000 $13.91 Greenville/Sparta 1,814 19,025,779 2,024,256 2,083, % 174, ,087 $13.13 Hampton Roads 1,422 23,013,648 2,836,223 2,919, % 48,473 98, ,908 $16.07 Hartford 1,218 39,386,829 3,663,218 3,869, % 24,082 50,960 31,400 $17.80 Hawaii ,017, , , % 146,283 89,811 92,262 $31.71 Houston 2, ,600,603 14,937,732 15,827, % 374, ,883 94,643 $18.78 Huntington/Ash 594 4,964, , , % (10,164) 0 3,000 $10.86 Huntsville ,756, , , % 96,637 90,136 15,000 $15.03 Indianapolis 2,214 48,686,422 4,810,798 4,881, % 400, , ,405 $16.44 Inland Empire (C 3,145 42,082,274 6,728,236 6,863, % 406, , ,275 $19.93 Jackson ,124,359 1,142,276 1,170, % (109,083) 0 0 $16.08 Jacksonville (Flor 1,469 28,778,573 4,499,998 4,596, % 73,813 10,124 48,763 $17.65 Kansas City 1,767 62,151,187 7,723,930 7,918, % (172,189) 16,880 0 $17.22 Killeen/Temple/F 97 1,070, , , % (15,003) 12,000 0 $7.78 Kingsport/Bristol 126 2,640, , , % 40, $10.93 Knoxville ,067,210 2,071,372 2,133, % (1,662) 91,703 86,148 $15.53 Lafayette 96 2,587, , , % (54,651) 0 0 $14.78 Las Vegas 2,149 41,671,816 7,866,883 8,187, % (372,912) 191, ,872 $20.30 Lexington/Fayet 459 8,573,817 1,033,826 1,043, % (41,968) 0 0 $15.56 Lincoln 473 9,766, , , % 31,481 41, ,825 $14.04 Little Rock/N Litt 248 9,573, , , % (6,584) 26,772 12,000 $14.81 Long Island (New 3,279 67,724,523 5,462,318 5,755, % 169, , ,841 $24.83 Los Angeles 5, ,540,371 17,268,874 18,176, % (1,041,727) 90, ,671 $24.73 Louisville ,598,639 2,865,493 2,998, % (49,493) 30,422 3,838 $14.91 Lubbock 183 4,573, , , % 56,950 40,847 16,047 $12.42 Madison ,158,460 1,736,377 1,766, % (67,987) 0 0 $14.84 Marin/Sonoma ,786,437 2,744,462 2,946, % (36,618) 16,000 0 $23.88 McAllen/Edinbur 295 4,216, , , % (53,956) 0 0 $15.77 Memphis 1,092 27,102,919 3,136,903 3,308, % 154,703 12,500 67,300 $15.68 Miami-Dade Cou 1,178 46,236,466 6,597,010 6,945, % 594,435 3,789 66,720 $25.13 Milwaukee 1,354 44,269,902 4,617,871 4,791, % (139,590) 0 238,159 $15.76 Minneapolis 1,938 87,192,287 8,210,564 8,354, % 953, , ,700 $15.24 Mobile 861 8,668, , , % (27,308) 3,600 2,885 $13.16 Montgomery 425 8,192,441 1,025,325 1,027, % (67,004) 0 6,250 $14.04 Myrtle Beach/Co 267 3,183, , , % (39,112) 13,738 4,455 $16.92 Nashville 1,217 29,830,210 3,212,241 3,297, % 259,592 92, ,314 $17.88 New Orleans/M ,782,239 1,800,205 1,907, % (132,251) 27,020 83,220 $15.89 New York City 1, ,319,160 8,417,785 9,548, % (235,572) 79,167 65,506 $40.24 Northern New Je 4, ,858,419 15,291,389 15,708, % (5,820) 218, ,330 $21.53 Ocala 117 1,160, , , % 11, $14.40 Oklahoma City 1,339 29,689,495 2,685,143 2,722, % (306) 63, ,300 $14.37 Olympia 385 5,421, , , % 23, ,000 0 $19.52 Omaha/Council ,739,449 2,385,141 2,398, % 37,845 24,398 60,422 $15.82 Orange (Californ 2,878 75,252,675 11,507,814 11,707, % (420,498) 84, ,583 $22.32 Orlando 2,517 45,725,008 6,871,422 7,107, % 412, ,812 53,150 $18.70 Palm Beach Cou 1,055 28,507,775 5,762,788 5,845, % (45,458) 37,634 72,000 $24.46 Pensacola 547 4,866, , , % 25,190 1,955 0 $15.40 Peoria 243 6,907, , , % (41,042) 0 0 $11.56 Source: CoStar Property 26 THE COSTAR OFFICE REPORT 2010 COSTAR GROUP, INC.

32 National Office Market FIGURES AT A GLANCE THIRD QUARTER 2010 NATIONAL Class B Market Statistics Third Quarter 2010 Existing Inventory Vacancy YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Philadelphia 7, ,102,515 21,117,003 21,890, % (399,049) 182, ,798 $19.46 Phoenix 4,390 89,993,974 19,163,690 19,746, % 81,681 82, ,938 $20.48 Pittsburgh 2,441 66,029,354 6,607,639 6,750, % 57,111 92,632 68,000 $17.61 Port St Lucie/For 422 5,396, , , % 98,157 16,255 0 $15.80 Portland 1,292 39,671,233 4,942,576 5,292, % 229, ,700 8,723 $18.12 Portland/South P 417 9,907, , , % (104,022) 8,100 18,800 $14.23 Providence ,488,248 1,596,403 1,725, % (56,022) 34,516 33,000 $18.07 Raleigh/Durham 1,860 39,292,191 5,144,445 5,284, % (33,280) 196,114 98,904 $17.06 Reno/Sparks 488 7,445,024 1,357,593 1,434, % (111,143) 4,253 0 $18.66 Richmond VA 1,118 26,078,259 3,202,857 3,246, % (221,362) 90, ,227 $15.11 Roanoke 144 3,309, , , % 50, $15.91 Rochester ,210,914 2,474,459 2,508, % 164, , ,460 $13.34 Sacramento 1,718 45,272,065 7,732,177 7,857, % 259, ,255 4,800 $21.67 Salinas 238 4,417, , , % 5, $23.07 Salt Lake City 2,460 51,406,468 4,075,449 4,135, % 960, , ,610 $15.40 San Antonio 1,236 37,924,709 4,192,002 4,265, % 144, , ,166 $18.35 San Diego 1,857 52,488,552 8,206,574 8,653, % 30,211 34,726 59,176 $24.50 San Francisco 1,439 63,960,754 8,941,337 9,397, % 49,805 23,011 59,855 $29.22 San Luis Obispo/ 119 1,386, , , % 22,801 56,100 0 $18.54 Santa Barbara/St 1,206 10,415, , , % (5,571) 0 0 $22.27 Santa Cruz/Wats 425 5,285, , , % (38,970) 0 0 $19.48 Savannah 425 4,754, , , % 60,197 75,000 0 $17.26 Seattle/Puget So 2,839 88,890,236 9,891,968 10,869, % 266, , ,321 $22.83 Shreveport/Boss 66 1,860, , , % (29,848) 8,800 7,200 $12.63 South Bay/San Jo 1,820 58,538,111 6,182,617 6,923, % 913, , ,655 $24.15 South Bend/Mish 184 2,738, , , % 105, $13.44 Southwest Florid 1,622 18,823,772 3,390,267 3,424, % 3,022 88,896 75,644 $15.79 Spokane 1,005 16,089,087 1,346,589 1,360, % 54,497 22,400 35,000 $15.32 Springfield 329 4,300, , , % (96,566) 9,800 27,747 $13.59 St. Louis 1,831 55,895,374 6,632,279 6,764, % 419,514 69,680 17,726 $16.91 Stockton/Modes 590 9,145,427 1,544,270 1,569, % (128,232) 0 0 $16.46 Syracuse ,763,429 1,176,357 1,176, % 157,327 6,150 5,000 $14.22 Tallahassee 1,666 18,027,035 1,174,938 1,210, % 38,562 69,650 0 $16.07 Tampa/St Peters 4,574 64,889,303 9,787,355 10,136, % 200,721 53,833 10,299 $18.57 Toledo ,422, , , % (23,582) 14,155 8,000 $14.85 Tucson 1,214 15,403,856 2,159,877 2,196, % (100,879) 106,951 65,288 $19.43 Tulsa ,395,642 3,900,585 4,019, % (29,377) 24,645 16,532 $13.67 Utica/Rome 246 4,611,053 69,365 69, % (9,111) 0 13,381 $10.70 Visalia/Porterville , , , % 18, $15.59 Washington 4, ,087,241 17,172,453 18,231, % (165,889) 121, ,293 $27.49 West Michigan 1,923 38,833,671 5,157,470 5,257, % 39,186 75,760 9,000 $13.95 Westchester/So 1,884 58,793,601 6,232,026 6,332, % 85,073 9,550 51,325 $24.20 Wichita ,254,845 1,350,632 1,381, % 7, $12.50 Wilmington 589 7,161, , , % 81,986 4,246 11,385 $15.78 Yakima 436 3,487, , , % 9, $12.23 Youngstown/Wa 389 5,552, , , % (26,721) 0 0 $11.26 Totals 178,558 4,555,088, ,480, ,365, % 4,806,535 9,809,174 8,955,206 $19.45 Source: CoStar Property 2010 COSTAR GROUP, INC. THE COSTAR OFFICE REPORT 27

33 NATIONAL THIRD QUARTER 2010 National Office Market FIGURES AT A GLANCE Class C Market Statistics Third Quarter 2010 Existing Inventory Vacancy YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Albany/Schenect 1,683 11,717, , , % 143,542 39,521 0 $12.92 Albuquerque 1,071 6,505, , , % (126,860) 0 0 $11.90 Anchorage 261 1,891,325 93,140 93, % 21, $15.59 Asheville 212 1,407, , , % 39, $12.41 Atlanta 7,343 46,884,883 7,382,720 7,430, % (494,934) 0 0 $14.28 Augusta/Richmo 562 2,591, , , % (31,717) 0 0 $9.92 Austin 1,638 13,083, , , % $18.65 Bakersfield 504 3,288, , , % (83,893) 0 0 $13.85 Baltimore 2,669 23,597,033 2,393,641 2,411, % 32, $17.79 Baton Rouge 970 8,557, , , % 139, $13.51 Beaumont/Port A 544 3,722,447 44,187 44, % 18, $12.61 Birmingham 2,183 19,090,388 2,118,406 2,162, % (189,621) 0 0 $12.15 Boise City/Namp 1,637 6,381, , , % (47,448) 0 0 $12.40 Boston 6,399 71,195,116 4,520,227 4,687, % (167,867) 0 0 $16.08 Bremerton/Silver 262 2,217, , , % (18,261) 0 0 $14.92 Broward County 3,027 23,201,223 1,637,437 1,638, % 17, $19.18 Brownsville/Harl ,501 34,913 34, % (1,876) 0 0 $12.68 Buffalo/Niagara 691 6,183, , , % 30, $12.25 Charleston WV 381 2,543, , , % (14,501) 0 0 $9.63 Charleston/N Ch 579 2,701, , , % (45,698) 0 0 $13.24 Charlotte 2,539 16,892,712 1,439,731 1,490, % (119,584) 0 0 $14.65 Chattanooga 489 3,814, , , % 36, $11.24 Chicago 5,646 84,915,035 9,149,121 9,383, % (13,995) 0 0 $17.10 Cincinnati 3,363 30,652,739 2,526,259 2,536, % 36, $12.18 Cleveland 3,259 37,378,643 3,169,259 3,352, % 76, $13.50 Colorado Springs 668 3,891, , , % 106, $11.62 Columbia 855 4,572, , , % 7, $11.99 Columbus 2,515 29,394,862 2,662,599 2,710, % 46, $13.58 Columbus GA ,424 91, , % (84,328) 0 0 $9.94 Corpus Christi 222 2,119, , , % (17,964) 0 0 $10.49 Dallas/Ft Worth 4,502 45,940,682 5,274,348 5,321, % 93, $14.93 Davenport/Molin 163 1,942, , , % (2,293) 0 0 $9.28 Dayton 2,399 22,655,903 2,191,623 2,210, % (24,504) 0 0 $11.63 Deltona/Dayton 579 2,315, , , % 7, $11.75 Denver 2,787 22,041,841 2,059,189 2,075, % 270, $14.80 Des Moines 304 3,169, , , % (52,607) 0 0 $10.82 Detroit 4,203 39,127,244 5,650,185 5,736, % 45, $15.30 Duluth 320 2,705, , , % (29,821) 0 0 $10.49 East Bay/Oaklan 3,695 29,627,701 2,049,868 2,078, % (110,479) 0 0 $19.08 El Paso 1,707 12,217, , , % 57, $11.56 Erie 180 1,519,554 49,263 49, % 15, $12.65 Evansville 204 1,507, , , % 8, $9.59 Fayetteville 322 1,363,326 93,287 93, % 39, $11.37 Fayetteville/Sprin 491 2,681, , , % (18,328) 0 0 $11.72 Fort Smith , , , % 16, $9.99 Fort Wayne 548 5,999, , , % (1,978) 0 0 $9.91 Fresno 1,961 17,094,150 1,149,650 1,163, % (115,990) 0 0 $13.18 Green Bay 321 2,490, , , % (13,804) 0 0 $10.25 Source: CoStar Property 28 THE COSTAR OFFICE REPORT 2010 COSTAR GROUP, INC.

34 National Office Market FIGURES AT A GLANCE THIRD QUARTER 2010 NATIONAL Class C Market Statistics Third Quarter 2010 Existing Inventory Vacancy YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Greensboro/Win 2,921 18,437,164 1,737,850 1,763, % (53,437) 0 0 $11.82 Greenville/Sparta 1,681 7,607, , , % 72, $10.29 Hampton Roads 1,402 8,450, , , % (122,459) 0 0 $12.81 Hartford 3,399 26,711,483 2,789,784 2,801, % (81,721) 0 0 $15.17 Hawaii 561 6,608, , , % 96, $25.30 Houston 2,500 40,550,961 4,396,920 4,433, % 139, $15.50 Huntington/Ash 352 2,390,318 80,197 80, % (11,340) 0 0 $11.43 Huntsville 235 2,436, , , % (6,158) 0 0 $11.72 Indianapolis 2,274 19,566,517 2,001,699 2,013, % 3, $14.66 Inland Empire (C 2,308 16,107,072 1,508,560 1,530, % (71,678) 0 0 $15.43 Jackson 741 5,028, , , % (21,297) 0 0 $12.46 Jacksonville (Flor 2,022 13,478,148 2,086,835 2,088, % 37, $15.97 Kansas City 1,787 19,157,408 2,120,943 2,157, % (173,352) 3,850 0 $13.21 Killeen/Temple/F ,330 82,448 82, % 14, $7.98 Kingsport/Bristol 291 2,208, , , % (2,010) 0 0 $11.00 Knoxville 1,853 16,194, , , % 41, $12.25 Lafayette 265 2,408, , , % (56,499) 0 0 $13.20 Las Vegas 1,495 7,567, , , % (75,264) 0 0 $15.44 Lexington/Fayet 557 4,744, , , % (173,492) 0 0 $14.40 Lincoln 196 1,861, , , % 1, $9.81 Little Rock/N Litt 1,760 18,621,672 1,203,614 1,219, % (90,850) 0 0 $12.71 Long Island (New 4,178 41,541,540 2,517,746 2,545, % (4,262) 0 0 $21.42 Los Angeles 10,277 89,539,940 4,338,068 4,470, % (218,499) 0 0 $23.31 Louisville 1,809 17,616,988 1,342,776 1,410, % (228,129) 0 0 $12.38 Lubbock 979 5,244, , , % (1,075) 0 0 $11.42 Madison 391 3,381, , , % 9, $10.81 Marin/Sonoma 1,293 7,761, , , % (4,400) 0 0 $21.47 McAllen/Edinbur ,287 86,545 95, % (41,783) 0 0 $11.39 Memphis 1,022 12,286,530 1,390,917 1,395, % 32, $13.08 Miami-Dade Cou 3,059 29,731,338 1,844,123 1,877, % (132,295) 0 0 $22.45 Milwaukee 1,804 15,787,686 1,449,312 1,449, % (55,121) 0 0 $12.41 Minneapolis 3,428 38,105,923 2,671,980 2,788, % 130, $13.95 Mobile 896 4,499, , , % (43,134) 0 0 $11.00 Montgomery 689 5,650, , , % (29,494) 0 0 $12.07 Myrtle Beach/Co 433 1,930,544 62,429 62, % 1, $12.27 Nashville 2,481 19,638,244 1,602,948 1,671, % (88,595) 0 0 $15.86 New Orleans/M 1,447 17,201,424 1,375,866 1,384, % (118,449) 0 0 $13.40 New York City 1,823 76,843,166 5,812,777 5,991, % (58,497) 0 0 $33.77 Northern New Je 8,979 76,094,624 6,256,071 6,310, % (23,777) 32,203 0 $19.46 Ocala 383 2,751, , , % (69,244) 0 0 $10.96 Oklahoma City 1,610 12,993,649 1,068,242 1,085, % (15,676) 0 0 $11.73 Olympia 328 1,935, , , % (51,308) 0 0 $13.62 Omaha/Council 559 5,205, , , % (6,021) 0 0 $11.18 Orange (Californ 2,413 21,477,329 1,552,854 1,574, % (159,150) 0 0 $19.85 Orlando 3,941 24,654,145 2,590,778 2,652, % 177, $16.32 Palm Beach Cou 1,517 12,000, ,928 1,017, % 84, $20.29 Pensacola 1,193 6,301, , , % 47, $12.14 Peoria 165 1,780, , , % $10.50 Source: CoStar Property 2010 COSTAR GROUP, INC. THE COSTAR OFFICE REPORT 29

35 NATIONAL THIRD QUARTER 2010 National Office Market FIGURES AT A GLANCE Class C Market Statistics Third Quarter 2010 Existing Inventory Vacancy YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Philadelphia 9,217 84,460,484 8,108,801 8,224, % 157, $16.93 Phoenix 3,293 22,695,858 3,039,521 3,046, % (229,566) 0 0 $15.99 Pittsburgh 3,379 22,367,959 1,939,729 1,941, % 250, $14.30 Port St Lucie/For 451 2,330, , , % 17, $15.58 Portland 3,027 22,490,394 1,842,170 1,871, % 5, $15.11 Portland/South P 1,086 9,184, , , % 47, $12.07 Providence 1,663 14,451,960 1,049,115 1,065, % 55, $14.81 Raleigh/Durham 1,746 12,496, , , % 37, $14.73 Reno/Sparks 492 4,175, , , % (119,489) 0 0 $14.87 Richmond VA 1,692 13,037, , , % (114,982) 0 0 $12.01 Roanoke 525 5,121, , , % (15,406) 0 0 $11.95 Rochester 865 8,373, , , % (200,523) 0 0 $11.16 Sacramento 3,083 31,183,669 4,117,810 4,227, % (462,807) 0 0 $16.49 Salinas 349 2,179, , , % (16,795) 0 0 $18.24 Salt Lake City 1,483 11,346, , , % 191, $11.90 San Antonio 1,634 15,966,443 1,059,029 1,081, % (81,208) 0 0 $14.22 San Diego 3,199 26,591,358 2,177,888 2,211, % (145,075) 0 0 $19.77 San Francisco 1,983 23,276,660 1,319,642 1,345, % 105, $29.36 San Luis Obispo/ 609 4,120, , , % 2, $16.94 Santa Barbara/St ,867 65,006 65, % (2,793) 0 0 $15.99 Santa Cruz/Wats 323 1,806,359 65,376 65, % 22, $16.38 Savannah 283 1,603, , , % (8,869) 0 0 $13.30 Seattle/Puget So 3,805 27,941,116 2,116,883 2,143, % (75,728) 0 0 $18.81 Shreveport/Boss 552 6,657,517 1,071,890 1,094, % (8,942) 0 0 $11.38 South Bay/San Jo 2,575 25,733,192 2,371,012 2,559, % 149, $21.01 South Bend/Mish 205 1,605, , , % 39, $10.06 Southwest Florid 1,294 8,081, , , % (12,571) 0 0 $13.54 Spokane 591 3,188, , , % 17, $11.19 Springfield 184 1,129, , , % 18, $10.97 St. Louis 2,755 30,522,394 2,967,997 2,985, % (10,154) 0 0 $14.41 Stockton/Modes 684 5,093, , , % (102,131) 0 0 $13.70 Syracuse 461 4,450, , , % 134, $11.43 Tallahassee 536 2,315, , , % 34, $12.21 Tampa/St Peters 6,731 44,351,169 3,917,383 3,946, % 113, $15.59 Toledo 1,954 17,086,532 1,558,426 1,560, % 35, $10.47 Tucson 1,142 5,114, , , % (66,430) 0 0 $15.20 Tulsa 1,211 8,815, , , % 196, $11.10 Utica/Rome 282 2,694, , , % 39, $8.38 Visalia/Porterville 796 4,317, , , % (28,374) 0 0 $13.71 Washington 3,552 36,720,285 2,926,470 2,986, % (234,356) 0 0 $24.05 West Michigan 3,572 28,423,528 3,244,687 3,275, % 81, $8.67 Westchester/So 4,104 40,843,400 2,792,883 2,888, % (206,464) 0 0 $20.04 Wichita 946 7,457, , , % (58,039) 0 0 $10.05 Wilmington 906 3,443, , , % 62, $12.77 Yakima ,028 54,076 54, % (7,027) 0 0 $10.56 Youngstown/Wa 1,167 7,955, , , % (5,452) 0 0 $9.08 Totals 243,853 2,145,129, ,586, ,865, % (2,313,025) 75,574 0 $16.21 Source: CoStar Property 30 THE COSTAR OFFICE REPORT 2010 COSTAR GROUP, INC.

36 National Office Market FIGURES AT A GLANCE THIRD QUARTER 2010 NATIONAL Total Office Market Statistics Third Quarter 2010 Existing Inventory Vacancy YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Albany/Schenect 3,356 53,343,326 3,467,266 3,584, % (198,852) 153,521 12,000 $14.76 Albuquerque 2,661 33,316,486 4,097,980 4,234, % (164,536) 264,955 47,000 $15.85 Anchorage ,062, , , % 57, ,595 0 $25.50 Asheville 938 9,768, , , % (25,994) 43,088 0 $15.21 Atlanta 12, ,131,514 46,426,471 49,420, % (737,604) 1,905, ,198 $18.88 Augusta/Richmo 1,243 9,706,862 1,010,800 1,011, % 64,333 27,030 21,922 $12.21 Austin 3,355 80,410,862 11,057,233 11,659, % 638,673 65, ,445 $24.79 Bakersfield ,820, , , % (191,030) 51,989 8,000 $18.48 Baltimore 5, ,876,316 16,408,295 17,286, % 784,297 1,323,143 1,355,221 $21.56 Baton Rouge 1,394 16,204,327 2,446,603 2,573, % 124,902 5,866 56,849 $15.98 Beaumont/Port A 630 6,733, , , % 16, $14.73 Birmingham 2,897 48,833,871 5,158,209 5,383, % (148,539) 27,958 8,201 $16.63 Boise City/Namp 2,717 27,165,905 3,448,076 3,471, % 17, , ,000 $14.88 Boston 11, ,956,207 37,846,894 40,666, % (346,971) 1,450,501 1,947,983 $21.27 Bremerton/Silver 374 4,209, , , % 25, $17.60 Broward County 4,325 71,244,681 8,647,959 9,127, % 374, ,997 0 $24.32 Brownsville/Harl 206 2,141, , , % (50,001) 0 0 $14.97 Buffalo/Niagara 1,443 33,773,880 3,170,872 3,218, % (68,252) 0 39,605 $14.88 Charleston WV ,210, , , % (104,539) 0 0 $13.31 Charleston/N Ch 1,818 19,390,914 2,276,459 2,352, % 141,253 65,696 9,000 $18.15 Charlotte 4,644 91,548,902 12,673,983 13,168, % 767,111 2,150, ,147 $18.76 Chattanooga ,371,060 1,212,984 1,221, % 4,680 54,000 0 $14.38 Chicago 11, ,234,906 65,593,922 71,243, % 264, , ,250 $22.55 Cincinnati 4,498 90,531,346 10,948,823 11,351, % 42, ,134 1,132,743 $15.11 Cleveland 5, ,908,922 15,275,160 15,780, % 161,069 83, ,616 $17.19 Colorado Springs 1,628 27,542,895 4,446,905 4,590, % 404, ,000 $15.51 Columbia 2,249 31,250,770 3,089,656 3,127, % (88,850) 13,193 0 $14.72 Columbus 3,826 91,127,003 9,893,763 10,227, % 213,592 98, ,099 $15.85 Columbus GA 249 3,412, , , % (27,683) 2,950 0 $12.42 Corpus Christi 567 9,535, , , % (103,530) 0 0 $13.60 Dallas/Ft Worth 9, ,948,433 56,421,974 58,830, % 636,950 1,776,926 1,493,486 $19.38 Davenport/Molin 362 6,159, , , % (22,146) 0 0 $10.39 Dayton 2,902 40,894,829 5,021,267 5,225, % (161,394) 4,000 0 $14.42 Deltona/Dayton 1,566 10,348, , , % 49, $13.89 Denver 6, ,542,917 24,434,291 25,880, % 1,258,246 1,102, ,800 $19.97 Des Moines ,155,865 2,554,095 2,605, % (70,325) 12, ,558 $13.29 Detroit 7, ,722,146 33,306,285 34,317, % (626,867) 136, ,501 $18.82 Duluth 391 6,415, , , % (50,797) 0 0 $14.05 East Bay/Oaklan 5, ,687,009 13,503,816 14,230, % (581,185) 181,681 28,559 $22.32 El Paso 2,136 19,690,201 1,521,329 1,521, % 467, ,810 33,473 $12.55 Erie 381 5,628, , , % 9, $11.32 Evansville 600 9,593, , , % (25,418) 0 0 $10.28 Fayetteville 824 5,613, , , % 82,260 19,476 0 $15.65 Fayetteville/Sprin ,685,016 1,417,981 1,443, % 140,422 4,957 21,395 $14.73 Fort Smith 391 3,885, , , % 67,548 3,000 0 $10.05 Fort Wayne ,237,163 1,542,185 1,557, % 94, $13.34 Fresno 2,809 32,355,284 3,405,052 3,590, % (257,897) 16,000 0 $17.66 Green Bay ,908,407 1,246,543 1,327, % 29,406 67,400 0 $12.88 Source: CoStar Property 2010 COSTAR GROUP, INC. THE COSTAR OFFICE REPORT 31

37 NATIONAL THIRD QUARTER 2010 National Office Market FIGURES AT A GLANCE Total Office Market Statistics Third Quarter 2010 Existing Inventory Vacancy YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Greensboro/Win 3,891 50,679,523 5,864,179 5,969, % 128,039 89,505 27,000 $13.79 Greenville/Sparta 3,561 33,126,371 3,813,066 3,965, % 70, ,280 19,087 $14.39 Hampton Roads 2,976 45,283,089 5,625,133 5,798, % 204, , ,908 $17.70 Hartford 4,687 84,173,133 8,744,665 9,026, % (242,235) 93,960 31,400 $17.82 Hawaii 1,007 32,998,591 1,716,465 1,774, % 448, ,929 92,262 $33.48 Houston 5, ,991,569 34,895,785 36,975, % 308, ,564 2,167,880 $22.76 Huntington/Ash 954 8,152, , , % (16,946) 0 3,000 $11.46 Huntsville ,445,559 1,466,473 1,577, % 106,143 90,136 15,000 $15.22 Indianapolis 4,659 93,286,749 10,416,771 10,682, % 405, , ,405 $17.17 Inland Empire (C 5,565 66,620,932 10,684,975 10,909, % 411, , ,275 $20.84 Jackson 1,524 21,611,277 2,263,275 2,319, % (360,557) 0 0 $16.82 Jacksonville (Flor 3,586 58,654,947 8,917,372 9,102, % 289,118 10,124 48,763 $18.06 Kansas City 3, ,700,509 13,780,436 14,311, % (274,134) 20,730 99,422 $18.06 Killeen/Temple/F 234 1,816, , , % (987) 12,000 0 $7.89 Kingsport/Bristol 418 4,888, , , % 38, $11.06 Knoxville 2,498 32,453,828 3,177,274 3,277, % 237, ,770 86,148 $15.24 Lafayette 365 5,186, , , % (125,061) 0 0 $14.39 Las Vegas 3,723 58,013,859 11,085,276 11,465, % (548,904) 191, ,872 $22.02 Lexington/Fayet 1,077 16,435,382 1,919,754 1,949, % (258,631) 30,000 0 $16.04 Lincoln ,987, , , % 27,196 41, ,825 $13.84 Little Rock/N Litt 2,018 29,886,256 1,779,246 1,819, % (94,611) 26,772 61,000 $13.62 Long Island (New 7, ,561,846 11,306,437 12,474, % 34, ,490 1,021,357 $25.75 Los Angeles 16, ,754,293 48,270,372 51,628, % (2,792,967) 380,177 1,506,785 $27.93 Louisville 2,826 50,669,000 5,738,105 6,125, % (188,006) 242,813 3,838 $15.96 Lubbock 1,168 10,369, , , % 66,823 40,847 16,047 $12.09 Madison 1,218 30,338,450 2,674,995 2,740, % (32,130) 0 0 $15.72 Marin/Sonoma 2,294 28,621,809 3,789,442 4,248, % (26,958) 16,000 0 $24.20 McAllen/Edinbur 383 5,160, , , % (94,397) 0 0 $16.74 Memphis 2,193 49,659,223 5,736,391 5,972, % 192,185 62,100 67,300 $16.09 Miami-Dade Cou 4, ,277,680 13,812,622 14,547, % 904,060 1,954, ,882 $29.75 Milwaukee 3,246 73,402,720 7,711,233 7,912, % (260,952) 0 238,159 $15.96 Minneapolis 5, ,462,212 14,730,681 15,226, % 1,502, , ,700 $15.72 Mobile 1,768 14,807,886 1,385,107 1,420, % (69,072) 3,600 2,885 $13.27 Montgomery 1,122 14,584,600 1,527,338 1,554, % (67,400) 0 6,250 $13.70 Myrtle Beach/Co 703 5,435, , , % (28,948) 13,738 4,455 $16.53 Nashville 3,825 68,873,624 7,053,306 7,582, % 228, , ,314 $18.82 New Orleans/M 1,955 41,888,891 4,046,456 4,232, % (253,513) 27,020 83,220 $15.62 New York City 3, ,434,756 37,820,470 43,579, % (2,592,462) 1,508,515 8,571,292 $43.17 Northern New Je 14, ,187,288 42,971,449 46,493, % (324,241) 391, ,026 $23.54 Ocala 503 4,052, , , % (153,264) 0 0 $13.57 Oklahoma City 2,979 47,370,028 4,387,760 4,470, % 5,580 63,709 1,979,300 $14.32 Olympia 714 7,566, , , % (27,383) 130,000 0 $17.53 Omaha/Council 1,350 37,402,050 3,903,514 3,925, % 128, , ,422 $16.11 Orange (Californ 5, ,124,050 22,487,476 23,290, % (377,400) 84, ,583 $23.48 Orlando 6,641 94,249,996 13,691,660 14,529, % 72, , ,150 $19.31 Palm Beach Cou 2,704 53,867,346 9,552,424 9,811, % 100, , ,950 $26.56 Pensacola 1,746 11,481, ,119 1,003, % 73,150 1,955 0 $14.12 Peoria 414 9,534, , , % (41,218) 0 0 $11.49 Source: CoStar Property 32 THE COSTAR OFFICE REPORT 2010 COSTAR GROUP, INC.

38 National Office Market FIGURES AT A GLANCE THIRD QUARTER 2010 NATIONAL Total Office Market Statistics Third Quarter 2010 Existing Inventory Vacancy YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Philadelphia 17, ,903,482 45,130,352 47,188, % (1,081,710) 774, ,798 $21.09 Phoenix 7, ,391,222 32,056,161 33,436, % 77,867 1,326, ,008 $21.49 Pittsburgh 6, ,995,262 11,815,529 12,083, % 1,187, , ,000 $18.63 Port St Lucie/For 893 8,675,228 1,266,781 1,281, % 150,987 16,255 0 $16.22 Portland 4,501 90,979,493 10,051,988 10,639, % 229, ,500 70,923 $19.48 Portland/South P 1,536 22,267,637 1,948,053 2,016, % (95,906) 8,100 18,800 $14.46 Providence 2,225 35,636,638 3,726,388 3,874, % (145,864) 34,516 63,769 $18.37 Raleigh/Durham 3,904 81,808,375 10,374,095 10,758, % 533, , ,948 $18.77 Reno/Sparks ,845,511 2,218,621 2,315, % (231,481) 4,253 0 $17.74 Richmond VA 2,956 58,889,080 6,680,707 7,016, % 245, , ,227 $16.54 Roanoke 675 9,200, , , % 35, $13.35 Rochester 1,602 39,543,776 3,807,137 3,850, % (84,435) 246, ,460 $13.38 Sacramento 4, ,235,320 16,718,901 17,147, % (258,106) 356, ,800 $21.45 Salinas 587 6,597, , , % (11,081) 0 0 $22.09 Salt Lake City 4,103 80,601,222 6,937,465 7,057, % 1,407, , ,110 $16.51 San Antonio 2,935 64,064,148 6,883,104 7,038, % 288, , ,416 $18.52 San Diego 5, ,676,706 15,962,927 16,890, % 744, ,951 59,176 $25.99 San Francisco 3, ,607,315 19,625,485 21,749, % (229,144) 135, ,952 $30.03 San Luis Obispo/ 728 5,506, , , % 25,603 56,100 0 $17.78 Santa Barbara/St 1,410 11,393, , , % 15, $21.17 Santa Cruz/Wats 748 7,091, , , % (16,724) 0 0 $19.05 Savannah 716 6,653,393 1,038,796 1,054, % 60,130 75,000 72,072 $16.95 Seattle/Puget So 6, ,838,539 20,612,449 22,286, % 1,419,641 1,647,808 2,263,500 $25.49 Shreveport/Boss 622 9,159,058 1,242,296 1,283, % (23,306) 8,800 7,200 $11.48 South Bay/San Jo 4, ,359,527 13,833,156 15,058, % 1,518, , ,655 $26.06 South Bend/Mish 404 5,583, , , % 136, $13.49 Southwest Florid 2,988 30,865,550 5,071,406 5,144, % 29, ,502 75,644 $16.54 Spokane 1,606 20,650,022 1,853,178 1,875, % 106,754 22,400 35,000 $15.80 Springfield 519 6,215, , , % (97,125) 9,800 27,747 $13.62 St. Louis 4, ,550,684 13,873,736 14,295, % 607, , ,726 $18.21 Stockton/Modes 1,289 15,399,608 2,436,924 2,466, % (214,003) 0 0 $16.19 Syracuse 1,106 22,294,172 1,809,628 1,809, % 322,678 66, ,366 $14.79 Tallahassee 2,209 20,903,333 1,475,809 1,511, % 53,181 69,650 0 $16.11 Tampa/St Peters 11, ,373,531 18,629,131 19,279, % 451,196 53,833 98,299 $19.44 Toledo 2,456 30,569,432 2,680,624 2,707, % 27,633 14,155 8,000 $13.78 Tucson 2,376 23,044,232 2,775,415 2,857, % (181,160) 106, ,288 $19.17 Tulsa 1,830 41,840,244 5,661,622 5,799, % 119, ,031 16,532 $13.76 Utica/Rome 531 7,589, , , % 30, ,381 $9.86 Visalia/Porterville 921 5,260, , , % (10,078) 0 0 $14.24 Washington 9, ,310,136 54,191,729 59,137, % 4,032,024 4,092,443 5,736,976 $33.93 West Michigan 5,572 75,713,379 9,256,825 9,398, % 255, ,060 97,000 $12.91 Westchester/So 6, ,520,321 16,501,146 17,791, % (601,449) 183, ,819 $26.95 Wichita 1,555 20,034,119 1,883,714 1,942, % (56,328) 0 0 $11.95 Wilmington 1,511 11,375,451 1,066,691 1,080, % 155,407 73,771 11,385 $15.92 Yakima 586 4,224, , , % 2, $11.73 Youngstown/Wa 1,564 14,111, , , % 60, ,000 0 $11.15 Totals 439,217 9,791,118,119 1,194,465,471 1,261,331, % 10,609,316 37,310,845 45,586,190 $21.61 Source: CoStar Property 2010 COSTAR GROUP, INC. THE COSTAR OFFICE REPORT 33

39 NATIONAL THIRD QUARTER 2010 National Office Market FIGURES AT A GLANCE Class A Market Statistics Existing Inventory Third Quarter 2010, Grouped by CBD vs Suburban Vacancy YTD Net YTD Under Quoted Market # Bldgs Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates CBD 2,520 1,064,517, ,177, ,329, % 679,256 10,424,233 16,791,405 $31.52 Suburban 14,286 2,026,382, ,220, ,771, % 7,436,550 17,001,864 19,839,579 $25.19 Class A Totals 16,806 3,090,900, ,398, ,101, % 8,115,806 27,426,097 36,630,984 $26.78 Source: CoStar Property Class B Market Statistics Existing Inventory Third Quarter 2010, Grouped by CBD vs Suburban Vacancy YTD Net YTD Under Quoted Market # Bldgs Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates CBD 13, ,496,242 89,275,947 93,623, % (2,392,658) 532, ,972 $22.18 Suburban 164,580 3,721,592, ,204, ,741, % 7,199,193 9,276,203 8,844,234 $19.02 Class B Totals 178,558 4,555,088, ,480, ,365, % 4,806,535 9,809,174 8,955,206 $19.45 Source: CoStar Property Class C Market Statistics Existing Inventory Third Quarter 2010, Grouped by CBD vs Suburban Vacancy YTD Net YTD Under Quoted Market # Bldgs Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates CBD 20, ,342,776 32,328,078 32,921, % (530,554) 0 0 $19.84 Suburban 222,958 1,785,786, ,258, ,944, % (1,782,471) 75,574 0 $15.62 Class C Totals 243,853 2,145,129, ,586, ,865, % (2,313,025) 75,574 0 $16.21 Source: CoStar Property Class A&B Market Statistics Existing Inventory Third Quarter 2010, Grouped by CBD vs Suburban Vacancy YTD Net YTD Under Quoted Market # Bldgs Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates CBD 16,498 1,898,014, ,453, ,952, % (1,713,402) 10,957,204 16,902,377 $27.52 Suburban 178,866 5,747,974, ,425, ,513, % 14,635,743 26,278,067 28,683,813 $21.40 Class A&B Totals 195,364 7,645,988,715 1,005,878,808 1,069,466, % 12,922,341 37,235,271 45,586,190 $22.53 Source: CoStar Property Class A,B&C Market Statistics Existing Inventory Third Quarter 2010, Grouped by CBD vs Suburban Vacancy YTD Net YTD Under Quoted Market # Bldgs Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates CBD 37,393 2,257,356, ,781, ,874, % (2,243,956) 10,957,204 16,902,377 $26.64 Suburban 401,824 7,533,761, ,683, ,457, % 12,853,272 26,353,641 28,683,813 $20.51 Grand Totals 439,217 9,791,118,119 1,194,465,471 1,261,331, % 10,609,316 37,310,845 45,586,190 $21.61 Source: CoStar Property 34 THE COSTAR OFFICE REPORT 2010 COSTAR GROUP, INC.

40 National Office Market FIGURES AT A GLANCE THIRD QUARTER 2010 NATIONAL Class A Market Statistics* Third Quarter 2010 Existing Inventory Vacancy Net Deliveries UC Inventory Period # Blds Total RBA Direct SF Total SF Vac % Absorption # Blds Total RBA # Blds Total RBA Rates ,827 2,677,538, ,544, ,623, % 5,965, ,046, ,315,827 $ q 13,798 2,672,491, ,236, ,542, % 4,624, ,645, ,617,455 $ ,759 2,664,846, ,615, ,522, % (4,644,380) 48 10,634, ,159,580 $ q 13,711 2,654,211, ,637, ,242, % 4,454, ,122, ,618,467 $ ,640 2,642,089, ,900, ,575, % 1,681, ,855, ,706,649 $ q 13,546 2,623,234, ,191, ,401, % (5,257,022) 88 15,203, ,419,261 $ ,458 2,608,030, ,157, ,940, % (4,946,477) ,250, ,799,188 $ q 13,346 2,594,780, ,756, ,743, % 3,048, ,525, ,200,419 $ ,193 2,575,254, ,382, ,267, % 3,820, ,224, ,838,225 $ q 13,069 2,560,030, ,189, ,862, % 7,137, ,652, ,314,346 $ ,929 2,540,377, ,455, ,347, % 5,323, ,137, ,429,402 $ ,788 2,525,083, ,879, ,376, % 53,786, ,656, ,379,930 $ ,315 2,468,653, ,543, ,733, % 67,985, ,005, ,238,267 $ ,964 2,422,638, ,230, ,704, % 69,148, ,648, ,281,250 $ ,711 2,389,149, ,713, ,363, % 65,659, ,784, ,293,051 $ ,477 2,354,849, ,368, ,723, % 32,626, ,447, ,628,601 $25.32 Source: CoStar Property * Excludes markets - see Methodology page. Quoted Class B Market Statistics* Third Quarter 2010 Existing Inventory Vacancy Net Deliveries Period # Blds Total RBA Direct SF Total SF Vac % Absorption # Blds Total RBA # Blds Total RBA Rates ,436 3,240,602, ,023, ,770, % 2,084, ,380, ,808,262 $ q 112,360 3,239,323, ,170, ,575, % 763, ,138, ,514,888 $ ,240 3,237,213, ,660, ,228, % 197, ,145, ,577,543 $ q 112,140 3,235,395, ,786, ,608, % (1,718,024) 188 3,611, ,791,374 $ ,963 3,232,095, ,037, ,589, % (5,998,422) 250 5,250, ,403,219 $ q 111,718 3,227,071, ,330, ,567, % (7,698,786) 323 5,620, ,383,457 $ ,402 3,221,844, ,702, ,642, % (9,134,141) 472 8,163, ,592,397 $ q 110,938 3,213,921, ,857, ,584, % 3,554, ,037,358 1,110 22,940,625 $ ,474 3,205,220, ,128, ,438, % 2,310, ,664,299 1,379 28,281,216 $ q 109,776 3,194,725, ,804, ,253, % 6,102, ,813,224 1,819 34,505,543 $ ,221 3,185,860, ,354, ,490, % 2,011,622 1,051 15,476,314 1,955 37,231,602 $ ,187 3,171,520, ,266, ,162, % 33,299,187 3,697 55,145,635 2,450 43,883,791 $ ,562 3,120,418, ,622, ,359, % 59,384,391 3,507 53,973,108 3,384 55,051,222 $ ,105 3,070,796, ,450, ,121, % 68,951,561 2,998 47,104,871 3,192 54,413,626 $ ,156 3,027,032, ,551, ,309, % 38,026,693 2,346 35,856,622 2,566 44,659,269 $ ,859 2,994,934, ,106, ,238, % 7,618,310 1,929 33,257,926 1,881 32,669,493 $19.31 Source: CoStar Property * Excludes markets - see Methodology page. UC Inventory Quoted Total Office Market Statistics* Third Quarter 2010 Existing Inventory Vacancy Net Deliveries UC Inventory Period # Blds Total RBA Direct SF Total SF Vac % Absorption # Blds Total RBA # Blds Total RBA Rates ,250 7,396,581, ,182,879 1,007,410, % 7,288, ,430, ,124,089 $ q 282,150 7,390,327, ,068,467 1,008,445, % 5,232, ,815, ,136,193 $ ,995 7,380,630, ,925,745 1,003,981, % (4,846,239) ,780, ,773,176 $ q 281,851 7,368,246, ,720, ,750, % 1,645, ,733, ,413,691 $ ,613 7,353,054, ,434, ,204, % (7,285,605) ,106, ,109,868 $ q 281,282 7,329,277, ,036, ,141, % (18,145,970) ,824, ,802,718 $ ,899 7,309,120, ,619, ,838, % (18,925,609) ,440,032 1,203 99,391,585 $ q 280,337 7,288,181, ,863, ,973, % 3,917, ,570,289 1, ,167,503 $ ,738 7,260,278, ,656, ,988, % 4,290, ,895,775 1, ,153,200 $ q 278,928 7,234,715, ,546, ,715, % 11,322, ,491,251 2, ,860,784 $ ,243 7,206,337, ,494, ,660, % 5,446,715 1,211 31,886,532 2, ,715,482 $ ,100 7,176,942, ,856, ,712, % 87,475,987 4, ,340,283 3, ,576,324 $ ,966 7,069,704, ,295, ,950, % 128,249,870 4, ,916,942 4, ,657,981 $ ,037 6,974,485, ,572, ,981, % 145,314,214 3,608 83,771,637 3, ,768,110 $ ,583 6,898,199, ,331, ,009, % 104,055,652 3,035 75,422,290 3, ,016,608 $ ,717 6,831,579, ,903, ,445, % 40,188,218 2,592 84,063,844 2,549 90,466,072 $21.80 Source: CoStar Property * Excludes markets - see Methodology page. Quoted 2010 COSTAR GROUP, INC. THE COSTAR OFFICE REPORT 35

41 NATIONAL THIRD QUARTER 2010 National Office Market LEASING ACTIVITY Historical Rental Rates* Based on Full-Service Equivalent Rental Rates $35.00 Class A Class B Class C Total Market $30.00 Dollars/SF/Year $25.00 $20.00 $15.00 $ q q q q q q q q q q q q q q q q q q q q 2010 Source: CoStar Property * Excludes markets - see Methodology page. Vacancy by Available Space Type Percent of All Vacant Space in Direct vs. Sublet 5% Direct Sublet Vacancy by Class Percent of All Vacant Space by Class Class A 15% Class B Class C 37% 95% 48% Source: CoStar Property Source: CoStar Property Future Space Available Space Scheduled to be Available for Occupancy in the Future* q q q 2012 * includes Under Construction Spaces Source: CoStar Property 36 THE COSTAR OFFICE REPORT 2010 COSTAR GROUP, INC.

42 National Office Market LEASING ACTIVITY THIRD QUARTER 2010 NATIONAL Select Top Office Leases Based on Leased Square Footage For Deals Signed in 2010 Building Market SF Qtr Tenant Name Tenant Rep Company Landlord Rep Company 1 Constitution Center Washington 1,000,000 3rd Security Exchange Commission N/A Cassidy Turley Commercial RE 2 KBR Tower* Houston 695,800 1st Kellogg Brown & Root LLC Jones Lang LaSalle Americas, Inc. Brookfield Properties Management 3 Melpar Office Complex Washington 655,001 3rd Department of Defense Medical Command CB Richard Ellis Cushman & Wakefield, Inc. 4 Waterview and Panorama Corp. Center Denver 452,733 2nd United Launch Alliance Colliers International Frederick Ross Company/ONCOR Int l 5 Eleven Times Square New York City 406,399 2nd Proskauer Rose L.L.P. CB Richard Ellis CB Richard Ellis Broadway* New York City 385,153 2nd Jones Apparel Group, Inc. CB Richard Ellis Equity Office Properties - New York 7 One North Wacker* Chicago 381,800 1st UBS N/A Hines Johnson Dr East Bay/Oakland 353,404 3rd Clorox N/A Jones Lang LaSalle 9 Equitable Bldg* New York City 352,418 1st Willkie Farr & Gallagher CB Richard Ellis CB Richard Ellis Perimeter Summit Atlanta 339,200 1st Auto Trader N/A CB Richard Ellis St James Pl Houston 335,027 3rd Weatherford International CB Richard Ellis Core Real Estate, LLC & 1220 Concord Ave* East Bay/Oakland 334,300 2nd Wells Fargo Bank MCC Realty Group, Inc. Direct Deal 13 The Campus at Legacy Dallas/Ft Worth 325,000 1st Denbury Resources, Inc. CB Richard Ellis KDC Park Ave Northern New Jersey 325,000 2nd BASF Corporation Cushman & Wakefield of NJ, Inc. Rockefeller Group Development Corp. 15 Woodfield Pointe Office Center Chicago 317,198 1st Career Education Corporation CB Richard Ellis CB Richard Ellis 16 RRI Energy Plaza Houston 316,763 3rd Shell Trading Cushman & Wakefield, Inc. PM Realty Group 17 BMG - Music* Greenville/Spartanburg 313,380 3rd Arvato Digital Services Clarus Properties, Inc. Piedmont Office Realty Trust 18 Norman Pointe II Minneapolis 300,618 2nd General Services Administration Julien J. Studley, Inc. Duke Realty Corporation 19 Park Avenue Plaza* New York City 295,452 1st McKinsey & Company CB Richard Ellis Fisher Brothers Management Co Jefferson Bldg* Houston 291,536 1st Kellogg Brown & Root Jones Lang LaSalle Americas, Inc. Brookfield Properties Management Eye St NW Washington 284,974 2nd Department of Veterans Affairs Studley Cassidy Turley Commercial RE 22 BMW Bldg* New York City 281,896 3rd CBS Broadcasting Inc. CB Richard Ellis SL Green Realty Corp Sunrise Valley Dr Washington 267,530 3rd Defense Intelligence Agency GSA - (WPD) Cassidy Turley Commercial RE 24 First & Main Bldg Portland 263,364 1st General Service Administration Jones Lang LaSalle NAI Norris, Beggs & Simpson Fifth Ave New York City 260,994 2nd Tiffany & Co. Studley L&L Holding Company, LLC 26 One Market St* San Francisco 260,519 1st Salesforce.com, Inc. Cushman & Wakefield, Inc. Direct Deal Sunrise Valley Dr Washington 255,950 3rd Defense Intelligence Agency GSA - (WPD) Cassidy Turley Commercial RE 28 Ten West Corporate Center II* Houston 248,872 3rd Mustang Engineering CB Richard Ellis Despain, Joel Third Ave New York City 246,500 1st Avon Products CB Richard Ellis Jones Lang LaSalle Avenue of the Americas New York City 243,000 2nd Service Employees International Union Newmark Knight Frank Cushman & Wakefield, Inc Mission College Blvd South Bay/San Jose 241,000 1st McAfee Cornish & Carey Commercial NKF Sobrato Development Companies 32 Campus at Greenhill Westchester/So Connecticut 240,000 3rd Anthem Blue Cross and Blue Shield N/A Cushman & Wakefield, Inc. 33 State Street Building* Boston 234,668 1st State Street Corporation CB Richard Ellis - New England Piedmont Office Realty Trust, Inc Hudson St* Northern New Jersey 232,465 3rd National Union Fire Insurance Co Cushman & Wakefield of NJ, Inc. Mack-Cali Realty Corporation Page Mill Rd South Bay/San Jose 224,852 3rd America Online Cornish & Carey Commercial NKF CB Richard Ellis Market St* San Francisco 220,000 2nd Morrison & Foerster LLP The CAC Group Cushman & Wakefield of California Wyman St Boston 214,742 3rd Dassault Systemes Jones Lang LaSalle Wyman Street Advisors 38 Paramount Plaza New York City 213,000 3rd Allianz Global Investors of America L.P. CB Richard Ellis Paramount Group, Inc. 39 John Hancock Tower Boston 208,423 2nd Bain Capital Cushman & Wakefield, Inc. Cushman & Wakefield, Inc. 40 Eleven Hundred Peachtree Street* Atlanta 206,140 3rd Kilpatrick Stockton LLP Jones Lang LaSalle Carter Source: CoStar Property * Renewal 2010 COSTAR GROUP, INC. THE COSTAR OFFICE REPORT 37

43 NATIONAL THIRD QUARTER 2010 National Office Market LEASING ACTIVITY Change In Vacant Square Footage Last 12 Months Third Quarter 2009 to Third Quarter 2010 Rank Region Diff 1 Lafayette 282, , % 2 Ocala 303, , % 3 San Luis Obispo/Paso Robles 205, , % 4 Bakersfield 694, , % 5 Jackson 1,744,104 2,319, % 6 Anchorage 489, , % 7 Brownsville/Harlingen 165, , % 8 Olympia 729, , % 9 Asheville 728, , % 10 Huntsville 1,330,738 1,577, % 11 Charleston WV 597, , % 12 Corpus Christi 793, , % 13 Lexington/Fayette 1,655,064 1,949, % 14 Columbia 2,695,783 3,127, % 15 Charlotte 11,431,850 13,168, % 16 Albuquerque 3,700,578 4,234, % 17 Myrtle Beach/Conway 354, , % 18 Tallahassee 1,334,180 1,511, % 19 Springfield 767, , % 20 Duluth 312, , % 21 McAllen/Edinburg/Pharr 508, , % 22 Tucson 2,540,407 2,857, % Source: CoStar Property Rank Region Diff 23 Green Bay 1,183,001 1,327, % 24 Rochester 3,442,670 3,850, % 25 Davenport/Moline/Rock Island 744, , % 26 New York City 39,109,032 43,579, % 27 Las Vegas 10,374,474 11,465, % 28 Louisville 5,565,166 6,125, % 29 Hampton Roads 5,273,453 5,798, % 30 Fayetteville 506, , % 31 Orange (California) 21,364,095 23,290, % 32 Montgomery 1,426,405 1,554, % 33 Shreveport/Bossier City 1,178,414 1,283, % 34 Salinas 483, , % 35 Boise City/Nampa 3,202,929 3,471, % 36 Stockton/Modesto 2,276,484 2,466, % 37 Visalia/Porterville 426, , % 38 Atlanta 45,686,837 49,420, % 39 Youngstown/Warren/Boardman 857, , % 40 Miami-Dade County 13,471,836 14,547, % 41 Westchester/So Connecticut 16,476,993 17,791, % 42 Reno/Sparks 2,147,256 2,315, % 43 Marin/Sonoma 3,953,520 4,248, % 44 Augusta/Richmond County 941,500 1,011, % 38 THE COSTAR OFFICE REPORT 2010 COSTAR GROUP, INC.

44 National Office Market SALES ACTIVITY THIRD QUARTER 2010 NATIONAL The Optimist Sales Index Average of Two Highest Price/SF's and Two Lowest Cap Rates From Each Region 8.0% Cap Rate Price/SF $ % $450 Cap Rate Percentage 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% $400 $350 $300 $250 $200 $150 $100 $50 Dollars/SF 0.0% q q q q q q $0 Source: CoStar COMPS Sales Volume & Price Sales Analysis by Building Size Based on Office Building Sales of 15,000 SF and Larger Based on Office Building Sales From July June 2010 Sales Volume Price/SF Bldg Size # RBA $ Volume Price/SF Cap Rate $35,000 $350 Millions of Sales Volume Dollars $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $300 $250 $200 $150 $100 $50 Price/SF < 50,000 SF 3,888 38,583,183 $ 5,720,794,934 $ % 50K-249K SF ,368,305 $ 7,311,367,484 $ % 250K-499K SF 62 21,781,818 $ 4,093,935,496 $ % $ $0 >500K SF 31 25,808,196 $ 5,800,587,533 $ % Source: CoStar COMPS Source: CoStar COMPS Historical Price/SF Average Based on Office Building Sales of 15,000 SF and Larger Historical Cap Rate Average Based on Office Building Sales of 15,000 SF and Larger $320 $ % 9.0% Dollars per SF $220 $170 $120 Cap Rate Percentage 8.0% 7.0% 6.0% 5.0% $70 4.0% $ % Source: CoStar COMPS Source: CoStar COMPS 2010 COSTAR GROUP, INC. THE COSTAR OFFICE REPORT 39

45 NATIONAL THIRD QUARTER 2010 National Office Market SALES ACTIVITY 40 THE COSTAR OFFICE REPORT 2010 COSTAR GROUP, INC.

46 National Office Market SALES ACTIVITY THIRD QUARTER 2010 NATIONAL 2010 COSTAR GROUP, INC. THE COSTAR OFFICE REPORT 41