CoStar Office Report - · PDF fileNational Office Market B THE COSTAR OFFICE REPORT ©2010 COSTAR GROUP, ... Denver, Detroit, East Bay/Oakland, Houston ... B THE COSTAR OFFICE REPORT

National Office MarketT H I R D Q U A R T E R 2 0 1 0

The CoStarOffice Report

National Office Market

©2010 COSTAR GROUP, INC. THE COSTAR OFFICE REPORT A

THIRD QUARTER 2010 – NATIONAL

Table of ContentsTable of Contents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A

Methodology. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B

Terms & Definitions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . C

Market Highlights & Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Employment & Tenant Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15Employment & Unemployment AnalysisTenant Profiles

Inventory & Development Analysis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17Inventory & Development AnalysisMap of Growth in Inventory Last 5 YearsSelect Top DeliveriesSelect Top Under Construction Properties

Figures at a Glance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22Figures at a Glance by Class & MarketFigures at a Glance Grouped by CBD vs SuburbanHistorical Figures at a Glance

Leasing Activity Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36Leasing Activity AnalysisSelect Top Lease TransactionsMap of Change In Vacant Square Footage Last 12 Months

Sales Activity Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39Sales Activity AnalysisSelect Top Sales TransactionsSelect Same Building Sales


B THE COSTAR OFFICE REPORT ©2010 COSTAR GROUP, INC.

NATIONAL – THIRD QUARTER 2010


©2010 COSTAR GROUP, INC. THE COSTAR OFFICE REPORT C


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 histori-cal 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.

© 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.

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For information on subscribing to CoStar’s other products and services, please contact us at

1-877-7COSTAR, or visit our web site at www.costar.com


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©2010 COSTAR GROUP, INC. THE COSTAR OFFICE REPORT C


Terms & DefinitionsAvailability 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 ten-ant. 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 pur-chased a commercial real estate asset.

Cap Rate: Short for capitalization rate. The Cap Rate is a calcula-tion 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 archi-tectural 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 fit-tings. 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 typical-ly 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 gener-ally 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 entrepre-neurial 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 typi-cal 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 pri-mary purpose of the space is for storing, producing, assembling, or distributing product.

Landlord Rep: (Landlord Representative) In a typical lease trans-action 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 commit-ted 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 building-type specific, and are non-overlapping contiguous geographic designations having a cumulative sum that matches the boundar-ies of the entire Region (See also: Region). Markets can be further subdivided into Submarkets. (See also: Submarkets)


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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 manufactur-ing, 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 vari-ous 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 par-ticular 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 eco-nomic 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 hall-ways, 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 build-ings in a given time period.

Seller: The individual, group, company, or entity that sells a par-ticular 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 delin-eate 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 metro-politan 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 construc-tion 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 avail-able. 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 con-sidered 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 what-ever time period is being studied.


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OVERVIEW

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 absorp-

tion 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.

AbsorptionNet absorption for the overall U.S. office market was

positive 9,019,493 square feet in the third quarter 2010. 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 2009.

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 mov-ing 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 posi-

tive 7,236,469 square feet in the third quarter 2010, compared to positive 5,665,000 square feet in the second quarter 2010, nega-tive (4,785,663) in the first quarter 2010, and positive 5,179,062 in the fourth quarter 2009.

The Class-B office market recorded net absorption of posi-tive 3,584,878 square feet in the third quarter 2010, compared to positive 1,464,620 square feet in the second quarter 2010, nega-tive (242,963) in the first quarter 2010, and negative (33,997) in the fourth quarter 2009.

The Class-C office market recorded net absorption of nega-tive (1,801,854) square feet in the third quarter 2010 compared to positive 172,249 square feet in the second quarter 2010, nega-tive (683,420) in the first quarter 2010, and negative (1,144,778) in the fourth quarter 2009.

Net absorption for U.S.’s central business district was positive 2,427,734 square feet in the third quarter 2010. 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 2009.

Net absorption for the suburban markets was positive 6,591,759 square feet in the third quarter 2010. 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 2009.

VacancyThe office vacancy rate in the U.S. market area changed to

Vacancy Rates by Class* 2000-2010

Source: CoStar Property® * Excludes markets - see Methodology page.

Absorption & Deliveries*Past 9 Quarters


7%

8%

9%

10%

11%

12%

13%

14%

15%

16%

17%

20004q

20012q

20014q

20022q

20024q

20032q

20034q

20042q

20044q

20052q

20054q

20062q

20064q

20072q

20074q

20082q

20084q

20092q

20094q

20102q

Vac

ancy

Rat

e

Class A Class B Class C Total Market

(17.3)(15.2)

(9.3)

2.1

(4.9)

5.67.1

24.9 24.226.6

17.8

14.2

11.3

7.3

(20.0)

(15.0)

(10.0)

(5.0)

0.0

5.0

10.0

15.0

20.0

25.0

30.0

2009 1q 2009 2q 2009 3q 2009 4q 2010 1q 2010 2q 2010 3q

Millio

ns

SF

Net Absorption Deliveries

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National Office MarketTHIRD QUARTER 2010 – NATIONAL



OVERVIEW

12.9% at the end of the third quarter 2010. 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 2009.

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 2009.

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 2009.

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 2009.

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 2009.

The vacancy rate in the suburban markets decreased to 13.2% in the third quarter 2010. 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 2009.

Largest Lease SigningsThe 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 VacancyThe amount of vacant sublease space in the U.S. market

decreased to 66,866,186 square feet by the end of the third quar-ter 2010, from 71,541,986 square feet at the end of the second quarter 2010. 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 2009.

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 sec-ond quarter 2010. 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 2009.

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 2010. 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 2010. 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 2009.

Sublease vacancy in U.S.’s central business district stood at 19,092,578 square feet at the end of the third quarter 2010. 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 2009.

Sublease vacancy in the suburban markets ended the third quarter 2010 at 47,773,608 square feet. At the end of the sec-ond 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 2009.

Rental RatesThe 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 repre-sented 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 $16.21. 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 $16.17.

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 ConstructionDuring 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 2009.

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






OVERVIEW

construction at the end of the third quarter 2010. The largest proj-ects 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.

InventoryTotal 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 2010. 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 ActivityTallying 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 2010. In the second quarter, 394 office transactions closed with a total vol-ume of $7,311,439,291. The 394 buildings totaled 38,148,046 square feet and the average price per square foot equated to $191.66 per square foot. That compares to 304 transactions totaling $4,118,732,529 in the first quarter 2010. The total square footage in the first quarter was 25,014,569 square feet for an average price per square foot of $164.65.

Total office building sales activity in 2010 was up compared to 2009. 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 $180.96. 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 $176.22 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 $502.72 per square foot. The property sold on 7/29/2010, at a 6.34% cap rate.

Albany/Schenectady/TroyWith 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.

AlbuquerqueThe Albuquerque office market saw vacancies rise and

rental rates decrease from the second quarter 2010 to the third quarter 2010. 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.

AnchorageThe Anchorage office market reported no new deliveries and

no space under construction at the end of the third quarter 2010. 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 $25.50.

AshevilleThe Asheville office market reported no new deliveries and


AtlantaThe Atlanta office market ended the quarter with a vacancy

rate of 17.6%. The vacancy rate was up over the previous quar-ter, 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 previ-ous 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 CountyWith no new office space being delivered to the market, and

negative (676) square feet of net absorption, Augusta/Richmond

Vacancy Rates by Class* 2000-2010


Absorption & Deliveries*Past 9 Quarters


7%

8%

9%

10%

11%

12%

13%

14%

15%

16%

17%

20004q

20012q

20014q

20022q

20024q

20032q

20034q

20042q

20044q

20052q

20054q

20062q

20064q

20072q

20074q

20082q

20084q

20092q

20094q

20102q

Vac

ancy

Rat

e


(17.3)(15.2)

(9.3)

2.1

(4.9)

5.67.1

24.9 24.226.6

17.8

14.2

11.3

7.3

(20.0)

(15.0)

(10.0)

(5.0)

0.0

5.0

10.0

15.0

20.0

25.0

30.0

2009 1q 2009 2q 2009 3q 2009 4q 2010 1q 2010 2q 2010 3q

Millio

ns

SF

Net Absorption Deliveries






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.

AustinThe 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 previ-ous 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.

BakersfieldWith 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.

BaltimoreThe Baltimore office market ended the quarter with a vacan-

cy 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 previ-ous 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 RougeWith 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 ArthurThe Beaumont/Port Arthur office market reported no new

deliveries and no space under construction at the end of the third quarter 2010. With this limited construction activity, net absorp-tion 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 $14.73.

BirminghamThe Birmingham office market ended the quarter with a

vacancy rate of 11.0%. The vacancy rate was up over the previ-ous 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/NampaThe 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.

BostonThe 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 mar-ket 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/SilverdaleThe Bremerton/Silverdale office market reported no new

deliveries and no space under construction at the end of the third quarter 2010. With this limited construction activity, net absorp-tion 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 $17.60.

Broward CountyThe Broward County office market reported no new deliv-

eries and no space under construction at the end of the third quarter 2010. With this limited construction activity, net absorp-tion 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 $24.32.

Brownsville/HarlingenThe Brownsville/Harlingen office market reported no new


Buffalo/Niagara FallsWith 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 WVThe Charleston WV office market reported no new deliver-






OVERVIEW

ies and no space under construction at the end of the third quarter 2010. 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 $13.31.

Charleston/N CharlestonThe 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.

CharlotteThe Charlotte office market ended the quarter with a vacan-

cy 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 previ-ous 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.

ChattanoogaThe Chattanooga office market reported no new deliveries

and no space under construction at the end of the third quarter 2010. 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 $14.38.

ChicagoThe 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 mar-ket had 590,250 square feet under construction at the end of the quarter, and rental rates stood at $22.55 per square foot.

CincinnatiThe Cincinnati office market ended the quarter with a

vacancy rate of 12.5%. The vacancy rate was up over the pre-vious 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.

ClevelandThe Cleveland office market ended the quarter with a vacan-

cy 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 SpringsWith 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.

ColumbiaWith 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.

ColumbusThe 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 GAThe Columbus GA office market reported no new deliveries


Corpus ChristiThe Corpus Christi office market reported no new deliveries


Dallas/Ft WorthThe 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.






OVERVIEW

Davenport/Moline/Rock IslandThe Davenport/Moline/Rock Island office market reported

no new deliveries and no space under construction at the end of the third quarter 2010. 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 $10.39.

DaytonThe Dayton office market reported no new deliveries and

no space under construction at the end of the third quarter 2010. With this limited construction activity, net absorption of posi-tive 107,970 square feet caused the vacancy rate to down from 13.0%to 12.8% in the quarter. Rental rates stood at $14.42.

Deltona/Daytona BeachThe Deltona/Daytona Beach office market reported no

new deliveries and no space under construction at the end of the third quarter 2010. 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 $13.89.

DenverThe 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 previ-ous 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 MoinesWith 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.

DetroitThe 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 mar-ket had 376,501 square feet under construction at the end of the quarter, and rental rates stood at $18.82 per square foot.

DuluthThe Duluth office market reported no new deliveries and

no space under construction at the end of the third quarter 2010. 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 $14.05.

East Bay/OaklandWith 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 quar-ter. 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 PasoThe 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 previ-ous 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.

ErieThe Erie office market reported no new deliveries and no

space under construction at the end of the third quarter 2010. 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 $11.32.

EvansvilleThe Evansville office market reported no new deliveries

and no space under construction at the end of the third quarter 2010. 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 $10.28.

FayettevilleWith 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/RogersWith 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 SmithThe Fort Smith office market reported no new deliveries and

no space under construction at the end of the third quarter 2010. With this limited construction activity, net absorption of positive






OVERVIEW

20,056 square feet caused the vacancy rate to down from 5.6%to 5.0% in the quarter. Rental rates stood at $10.05.

Fort WayneThe Fort Wayne office market reported no new deliveries

and no space under construction at the end of the third quarter 2010. 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 $13.34.

FresnoThe Fresno office market reported no new deliveries and

no space under construction at the end of the third quarter 2010. 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 $17.66.

Green BayWith no space currently under construction, Green Bay


Greensboro/Winston-SalemWith 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/SpartanburgWith 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 RoadsThe 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.

HartfordThe Hartford office market saw vacancies fall and rental

rates decrease from the second quarter 2010 to the third quarter

2010. 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 quar-ter, with 31,400 square feet still under construction at the end of the quarter.

HawaiiThe 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 quar-ter, and rental rates stood at $33.48 per square foot.

HoustonThe 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 mar-ket 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/AshlandWith 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.

HuntsvilleWith 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 quar-ter, there was 15,000 square feet underway for future delivery.

IndianapolisWith 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 2010. 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






OVERVIEW

the quarter, with 285,275 square feet still under construction at the end of the quarter.

JacksonThe Jackson office market reported no new deliveries and


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 CityThe Kansas City office market ended the quarter with a

vacancy rate of 13.7%. The vacancy rate was up over the pre-vious 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 HoodWith 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/BristolThe Kingsport/Bristol/Bristol office market reported no new


KnoxvilleThe Knoxville office market ended the quarter with a

vacancy rate of 10.1%. The vacancy rate was up over the previ-ous 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.

LafayetteThe Lafayette office market reported no new deliveries and


Las VegasThe vacancy rate remained unchanged in Las Vegas in the


Lexington/FayetteThe Lexington/Fayette office market reported no new deliv-

eries and no space under construction at the end of the third quar-ter 2010. 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 $16.04.

LincolnThe 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 con-struction at the end of the quarter.

Little Rock/N Little RockThe 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 2010. 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 AngelesThe Los Angeles office market ended the quarter with a

vacancy rate of 12.3%. The vacancy rate was up over the previ-ous quarter, with net absorption totaling negative (1,001,268)






OVERVIEW

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.

LouisvilleThe Louisville office market saw vacancies rise and rental

rates increase from the second quarter 2010 to the third quarter 2010. 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 quar-ter, with 3,838 square feet still under construction at the end of the quarter.

LubbockThe 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 quar-ter, and rental rates stood at $12.09 per square foot.

MadisonThe Madison office market reported no new deliveries and


Marin/SonomaThe Marin/Sonoma office market reported no new deliveries


McAllen/Edinburg/PharrThe McAllen/Edinburg/Pharr office market reported no new


MemphisWith 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 quar-ter, there was 67,300 square feet underway for future delivery.

Miami-Dade CountyThe 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.

MilwaukeeWith 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.

MinneapolisThe vacancy rate remained unchanged in Minneapolis in the


MobileWith 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 quar-ter, there was 2,885 square feet underway for future delivery.

MontgomeryWith 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/ConwayWith 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.

NashvilleThe Nashville office market ended the quarter with a vacan-

cy 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 previ-ous quarter. A total of one building with 15,108 square feet of






OVERVIEW

space delivered to the market, with 226,314 square feet still under construction at the end of the quarter.

New Orleans/Metairie/KennerWith 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 CityThe 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 previ-ous 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 JerseyThe Northern New Jersey office market saw vacancies rise

and rental rates decrease from the second quarter 2010 to the third quarter 2010. 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.

OcalaThe Ocala office market reported no new deliveries and no

space under construction at the end of the third quarter 2010. 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 $13.57.

Oklahoma CityThe Oklahoma City office market ended the quarter with a

vacancy rate of 9.4%. The vacancy rate was down over the previ-ous 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.

OlympiaThe Olympia office market reported no new deliveries and


Omaha/Council BluffsWith 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.

OrlandoThe 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 mar-ket 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 CountyThe 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.

PensacolaThe Pensacola office market reported no new deliveries and


PeoriaThe Peoria office market reported no new deliveries and no

space under construction at the end of the third quarter 2010. 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 $11.49.

PhiladelphiaThe Philadelphia office market ended the quarter with a

vacancy rate of 12.8%. The vacancy rate was up over the previ-ous 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






OVERVIEW

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.

PhoenixThe Phoenix office market ended the quarter with a vacancy

rate of 21.7%. The vacancy rate was up over the previous quar-ter, 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 previ-ous 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.

PittsburghThe 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 PierceThe Port St Lucie/Fort Pierce office market reported no new


PortlandThe 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 pre-vious 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 PortlandThe Portland/South Portland office market ended the quar-

ter 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.

ProvidenceThe Providence office market saw vacancies fall and rental

rates decrease from the second quarter 2010 to the third quarter 2010. 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 quar-ter, with 63,769 square feet still under construction at the end of the quarter.

Raleigh/DurhamThe 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/SparksThe Reno/Sparks office market reported no new deliveries


Richmond VAThe 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.

RoanokeThe Roanoke office market reported no new deliveries and


RochesterWith 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.

SacramentoThe 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)






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.

SalinasThe Salinas office market reported no new deliveries and


Salt Lake CityThe 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 AntonioThe San Antonio office market ended the quarter with a

vacancy rate of 11.0%. The vacancy rate was up over the previ-ous 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 DiegoThe 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 FranciscoWith 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 RoblesThe San Luis Obispo/Paso Robles office market reported no

new deliveries and no space under construction at the end of the third quarter 2010. 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 $17.78.

Santa Barbara/Sta Maria/GoletaThe Santa Barbara/Sta Maria/Goleta office market reported

no new deliveries and no space under construction at the end of the third quarter 2010. 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 $21.17.

Santa Cruz/WatsonvilleThe Santa Cruz/Watsonville office market reported no new


SavannahThe Savannah office market ended the quarter with a vacan-

cy 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 SoundThe 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 CityWith 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 JoseThe 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 770,610






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/MishawakaThe South Bend/Mishawaka office market reported no new


Southwest FloridaThe Southwest Florida office market saw vacancies rise and

rental rates decrease from the second quarter 2010 to the third quarter 2010. 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.

SpokaneWith 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 quar-ter, there was 35,000 square feet underway for future delivery.

SpringfieldWith 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. LouisThe vacancy rate remained unchanged in St. Louis in the


Stockton/ModestoThe Stockton/Modesto office market reported no new deliv-

eries and no space under construction at the end of the third quar-ter 2010. 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 $16.19.

SyracuseWith 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 quar-ter, there was 167,366 square feet underway for future delivery.

TallahasseeWith no space currently under construction, Tallahassee


Tampa/St PetersburgThe 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.

ToledoWith 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 quar-ter, there was 8,000 square feet underway for future delivery.

TucsonThe Tucson office market ended the quarter with a vacancy

rate of 12.4%. The vacancy rate was up over the previous quar-ter, 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 previ-ous 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.

TulsaThe Tulsa office market ended the quarter with a vacancy

rate of 13.9%. The vacancy rate was up over the previous quar-ter, 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 previ-ous 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/RomeWith no new office space being delivered to the market, and






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/PortervilleThe Visalia/Porterville office market reported no new deliv-

eries and no space under construction at the end of the third quar-ter 2010. 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 $14.24.

WashingtonThe 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 MichiganThe West Michigan office market saw vacancies fall and

rental rates increase from the second quarter 2010 to the third quarter 2010. 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.

WichitaThe Wichita office market reported no new deliveries and


WilmingtonThe Wilmington office market ended the quarter with a

vacancy rate of 9.5%. The vacancy rate was up over the previ-ous 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.

YakimaThe Yakima office market reported no new deliveries and


Youngstown/Warren/BoardmanThe Youngstown/Warren/Boardman office market reported

no new deliveries and no space under construction at the end of the third quarter 2010. 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 $11.15.






Total Employment by Industry Total Employment GrowthPercent of Total Employment by Industry Total Number of Jobs Added Per Year

Source: Department of Labor, Bureau of Labor Statistics Source: Department of Labor, Bureau of Labor Statistics

Office* Employment Growth Office* Employment GrowthCumulative Growth in Office* Jobs Over the Past 5 Years Number of Office* Jobs Added Per Year

MarketEmployment

GrowthInventory Growth Difference

Atlanta -9.70% 6.00% -15.70%

Boston -3.20% 2.60% -5.80%

Chicago -10.80% 3.40% -14.20%

Dallas/Ft Worth -0.90% 6.20% -7.10%

Denver -4.50% 4.60% -9.10%

Los Angeles -10.90% 2.70% -13.60%

New York City -3.90% 1.60% -5.50%

Seattle/Puget Sound -4.00% 8.60% -12.60%

Tampa/St Petersburg -12.80% 6.40% -19.20%

Washington -2.70% 7.40% -10.10%

Historical Unemployment Rates

Source: Department of Labor, Bureau of Labor Statistics.

Source: Department of Labor, Bureau of Labor Statistics. * Office employment is defined as jobs in the Information,

Financial Activities, and Professional & Business Services industriesSource: Department of Labor, Bureau of Labor Statistics. * Office employment is defined as jobs in the Information,

Financial Activities, and Professional & Business Services industries

-6.0%

-5.0%

-4.0%

-3.0%

-2.0%

-1.0%

0.0%

1.0%

2.0%

3.0%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Perc

ent

Gro

wth

15%

10%

4%

17%

1%

13%

9%

19%

2%

6%

4%Natural Resources &MiningConstruction

Manufacturing

Trade, Transportation &UtilitiesInformation

Financial Activities

Professional & BusinessServicesEducation & HealthServicesLeisure & Hospitality

Other Services

Government

-8.0%

-7.0%

-6.0%

-5.0%

-4.0%

-3.0%

-2.0%

-1.0%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Perc

ent

Gro

wth

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

20001q

20003q

20011q

20013q

20021q

20023q

20031q

20033q

20041q

20043q

20051q

20053q

20061q

20063q

20071q

20073q

20081q

20083q

20091q

20093q

20101q

Perc

ent

Unem

plo

yment

EMPLOYMENT AND TENANT






EMPLOYMENT AND TENANT

Tenant Firms by Size Range Tenant Lease ExpirationBased on Total Occupied Square Footage Based on Total Occupied Square Footage

Source: CoStar Tenant® Source: CoStar Tenant®

Tenants by Industry SF Per Employee by IndustryBased on Total Occupied Square Footage Based on Total Occupied Square Footage

Source: CoStar Tenant® Source: CoStar Tenant®

49.7%

20.4%

13.1%

10.3%

3.5%

1.2%

2.0%

0% 10% 20% 30% 40% 50% 60%

Up to 2,499 SF

2,500-4,999 SF

5,000-9,999 SF

10,000-24,999 SF

25,000-49,999 SF

50,000-74,999 SF

75,000 SF & Up

Percentage of Tenants

11.8%

12.7%

11.9%

10.0%

9.3%

6.3%

0% 2% 4% 6% 8% 10% 12% 14%

2011

2012

2013

2014

2015

2016


22.0%

13.9%

11.7%

11.2%

8.9%

6.5%

6.1%

5.8%

4.0%

3.6%

3.3%

1.7%

1.4%

0% 5% 10% 15% 20% 25%

Finance/Ins/RE

Services

Business-Service

Manufacturing

Law Firms

Medical

Retailers/Wholes

Government

Communications

Agri/Mining/Util

Engineers/Archit

Accountants

Transportation


427.5

386.3

385.6

364.8

358.2

344.1

343.9

331.2

328.2

320.9

312.7

306.4

295.2

0 50 100 150 200 250 300 350 400 450

Law Firms

Government

Services

Manufacturing

Retailers/Wholes

Agri/Mining/Util

Medical

Accountants

Engineers/Archit

Finance/Ins/RE

Communications

Business-Service

Transportation

SF Per Employee






Historical Deliveries 1983 - 2011

Source: CoStar Property® * Future deliveries based on current under construction buildings.

Construction Activity Markets Ranked by Under Construction Square Footage

# Bldgs Preleased SF Preleased % All Existing U/CNew York City 8 1,194,453 13.9% 142,550 1,071,411 Washington 22 4,249,806 74.1% 47,941 260,772 Seattle/Puget Sound 13 1,815,827 80.2% 24,799 174,115 Houston 8 1,042,010 48.1% 52,021 270,985 Oklahoma City 3 1,978,124 99.9% 15,901 659,767 Boston 15 1,117,406 57.4% 32,030 129,866 Los Angeles 30 381,283 25.3% 25,188 50,226 Dallas/Ft Worth 23 1,189,924 79.7% 35,450 64,934 Baltimore 22 359,787 26.5% 22,323 61,601 Cincinnati 10 836,963 73.9% 20,127 113,274 Long Island (New York) 16 678,467 66.4% 19,294 63,835 Miami-Dade County 6 122,749 12.5% 23,335 164,314 Las Vegas 16 636,102 72.7% 15,583 54,679 Denver 19 524,693 66.9% 26,299 41,305 Westchester/So Connecticut 8 285,638 37.1% 25,144 96,227 Salt Lake City 9 624,810 90.1% 19,644 77,012 Northern New Jersey 20 123,407 19.7% 24,017 31,251 Chicago 10 332,366 56.3% 37,636 59,025 Des Moines 3 585,771 99.7% 34,350 195,853 St. Louis 4 435,026 76.6% 25,612 141,931 Phoenix 13 477,141 86.8% 19,442 42,308 San Antonio 21 105,915 19.5% 21,828 25,925 San Francisco 4 489,897 93.0% 43,081 131,738 Palm Beach County 9 203,755 41.9% 19,921 53,994 South Bay/San Jose 4 183,875 46.2% 23,726 99,414 Cleveland 5 208,416 54.2% 24,640 76,923 Philadelphia 10 283,928 74.0% 21,418 38,380 Columbus 5 328,993 86.3% 23,818 76,220 Detroit 7 217,874 57.9% 24,701 53,786 Orange (California) 7 345,623 92.5% 25,899 53,369 Charlotte 4 185,712 54.3% 19,713 85,537 Atlanta 15 136,878 41.8% 21,664 21,813 Raleigh/Durham 12 194,728 67.6% 20,955 23,996 Inland Empire (California) 14 38,869 13.6% 11,971 20,377 Milwaukee 4 235,695 99.0% 22,613 59,540 Tucson 4 235,288 100.0% 9,699 58,822 Nashville 6 83,620 36.9% 18,006 37,719 Sacramento 3 0 0.0% 20,468 73,267 Austin 12 50,713 23.8% 23,967 17,787 Lincoln 4 162,623 85.2% 20,539 47,706 Pittsburgh 4 17,200 9.7% 20,245 44,500 Hampton Roads 12 82,877 49.4% 15,216 13,992 Syracuse 3 116,286 69.5% 20,157 55,789 Orlando 6 100,100 63.3% 14,192 26,358 Totals 559 24,263,486 53.2% 22,292 81,550

Source: CoStar Property®

8,571,292

45,586,190

MarketUnder Construction Inventory Average Bldg Size

Total RBA

327,198

190,825 178,000 167,908

158,150 167,366

5,736,976 2,263,500 2,167,880 1,979,300

1,132,743 1,021,357

985,882

1,947,983 1,506,785 1,493,486 1,355,221

874,872 784,800 769,819

625,026 693,110

590,250 587,558 567,726

485,950

550,008 544,416 526,952

373,583 342,147

397,655

383,798 381,099 376,501

384,616

219,800 213,445

287,948 285,275 238,159

226,314 235,288

238.6

272.4

317.8301.6

248.1

209.3

231.9

190.5

108.288.9

50.1 50.367.8 74.2

101.4

156.8

208.0203.7218.7

156.3

109.0105.8119.8

146.8155.8153.6

108.0

49.9

19.5

0.0

50.0

100.0

150.0

200.0

250.0

300.0

350.0

1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Millio

ns

SF

Deliveries Average Delivered SF

INVENTORY & DEVELOPMENT






Historical Construction Starts & Deliveries*Square Footage Per Quarter Starting and Completing Construction


Recent Deliveries by Project Size Breakdown of Year-to-Date Development Based on RBA of Project

Building Size # Bldgs RBA % Leased Avg Rate Single Tenant Multi-Tenant

< 50,000 SF 503 6,929,412 56.1% $24.92 939,725 5,989,687

50,000 SF - 99,999 SF 50 3,477,381 65.3% $31.27 580,345 2,897,036

100,000 SF - 249,999 SF 64 9,877,649 74.7% $35.41 3,013,010 6,864,639

250,000 SF - 499,999 SF 25 8,599,048 64.9% $32.19 1,413,508 7,185,540

>= 500,000 SF 11 8,427,355 61.7% $38.77 2,114,088 6,313,267


Recent Deliveries Future Deliveries Leased & Un-Leased SF in Deliveries Last 5 Years Preleased & Un-Leased SF in Properties Scheduled to Deliver

5,583,055

5,199,110

SF Leased

3,888,374

2,271,250

7,378,403

31.3 31.4 31.6

28.5

44.4

35.333.9 32.8 32.4

24.3

17.3

11.910.1

7.2 6.9

3.44.8 4.5 4.6

33.0

23.1 22.524.4

38.3

26.7 26.2

34.5

37.7

33.4

29.3

32.9

24.9 24.226.6

17.8

14.211.3

7.3

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

50.0

2006 1q 2006 2q 2006 3q 2006 4q 2007 1q 2007 2q 2007 3q 2007 4q 2008 1q 2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q 2010 1q 2010 2q 2010 3q

Millio

ns

SF

Construction Starts Deliveries

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

160.0

180.0

2006 2007 2008 2009 2010

Millio

ns

SF

Leased Un-Leased

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

2010 4q 2011 1q 2011 2q 2011 3q

Millio

ns

SF

Preleased Un-Leased







Rank Region3rd Qtr 2010 3rd Qtr 2005 Increase in Inventory

# Bldgs Existing RBA U/C RBA Total RBA # Bldgs Total RBA # Bldgs Total RBA %1 Las Vegas 3,723 58,013,859 874,872 58,888,731 3,336 49,261,270 387 9,627,461 20%

2 Inland Empire (California) 5,565 66,620,932 285,275 66,906,207 5,051 56,612,861 514 10,293,346 18%

3 Fayetteville/Springdale/Rogers

908 10,685,016 21,395 10,706,411 861 9,244,614 47 1,461,797 16%

4 Phoenix 7,941 154,391,222 550,008 154,941,230 7,168 134,851,812 773 20,089,418 15%

5 San Antonio 2,935 64,064,148 544,416 64,608,564 2,728 56,790,503 207 7,818,061 14%

6 Southwest Florida 2,988 30,865,550 75,644 30,941,194 2,770 27,389,497 218 3,551,697 13%

7 Raleigh/Durham 3,904 81,808,375 287,948 82,096,323 3,705 73,337,171 199 8,759,152 12%

8 Wilmington 1,511 11,375,451 11,385 11,386,836 1,437 10,182,538 74 1,204,298 12%

9 Palm Beach County 2,704 53,867,346 485,950 54,353,296 2,588 48,859,191 116 5,494,105 11%

10 Austin 3,355 80,410,862 213,445 80,624,307 3,135 72,553,802 220 8,070,505 11%

11 Salt Lake City 4,103 80,601,222 693,110 81,294,332 3,900 73,234,141 203 8,060,191 11%

12 Charlotte 4,644 91,548,902 342,147 91,891,049 4,413 82,825,245 231 9,065,804 11%

13 Orlando 6,641 94,249,996 158,150 94,408,146 6,286 85,437,494 355 8,970,652 10%

14 Stockton/Modesto 1,289 15,399,608 0 15,399,608 1,232 13,957,196 57 1,442,412 10%

Growth in Inventory Last 5 Years - Select RegionsBased on Percentage Growth in Inventory From Third Quarter 2005 Through Third Quarter 2010

Including Current Under Construction Square Footage

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FIGURES AT A GLANCE

Class A Market Statistics Third Quarter 2010

YTD Net YTD Under Quoted

Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates

Albany/Schenect 78 8,330,816 405,274 493,565 5.9% 27,515 114,000 0 $17.41

Albuquerque 24 4,111,559 431,298 471,953 11.5% (31,819) 0 0 $18.83

Anchorage 16 2,519,138 199,792 199,792 7.9% 118,607 194,595 0 $34.57

Asheville 13 937,920 90,587 90,587 9.7% (8,151) 0 0 $22.66

Atlanta 494 112,434,215 20,250,269 22,324,654 19.9% 274,419 1,813,024 107,500 $21.65

Augusta/Richmo 11 727,761 86,286 86,286 11.9% 10,766 0 0 $17.69

Austin 228 31,202,240 5,383,842 5,852,609 18.8% 326,333 0 80,000 $28.08

Bakersfield 17 1,325,669 141,469 144,737 10.9% 13,445 31,262 0 $21.91

Baltimore 348 42,024,990 6,785,668 7,347,312 17.5% 474,798 977,762 959,168 $25.14

Baton Rouge 16 2,342,465 425,084 513,562 21.9% 4,934 0 0 $22.19

Beaumont/Port A 5 770,727 137,919 137,919 17.9% 10,476 0 0 $18.24

Birmingham 77 12,171,871 1,212,770 1,308,072 10.7% 17,883 0 0 $20.88

Boise City/Namp 16 3,927,618 449,191 452,894 11.5% 131,701 132,350 0 $18.03

Boston 759 142,051,906 16,983,811 18,632,128 13.1% 84,563 1,373,593 1,879,775 $27.25

Bremerton/Silver 0 0 0 0 0.0% 0 0 0 $0.00

Broward County 125 15,225,398 2,828,997 3,031,774 19.9% 14,798 171,260 0 $29.30

Brownsville/Harl 1 28,574 27,089 27,089 94.8% (3,608) 0 0 $18.00

Buffalo/Niagara 59 8,739,709 594,738 621,321 7.1% (43,665) 0 0 $18.05

Charleston WV 8 741,867 23,669 23,669 3.2% 87 0 0 $19.09

Charleston/N Ch 72 5,284,903 551,754 594,754 11.3% 109,415 0 0 $20.93

Charlotte 208 33,544,774 5,351,131 5,651,288 16.8% 803,586 2,050,000 324,310 $22.08

Chattanooga 10 1,047,450 123,121 123,121 11.8% (788) 0 0 $22.43

Chicago 545 163,309,688 26,904,296 30,603,533 18.7% 303,805 654,000 510,750 $26.78

Cincinnati 160 25,553,628 3,877,467 4,034,879 15.8% (29,915) 0 1,090,207 $17.82

Cleveland 135 22,418,947 2,582,814 2,691,123 12.0% (110,677) 45,000 237,000 $21.35

Colorado Springs 55 5,599,989 1,080,512 1,142,440 20.4% 61,216 0 0 $18.26

Columbia 42 5,771,526 1,060,902 1,070,759 18.6% (48,873) 0 0 $16.78

Columbus 178 26,156,785 3,068,539 3,231,147 12.4% 34,271 92,000 325,000 $18.39

Columbus GA 4 303,001 0 0 0.0% 0 0 0 $0.00

Corpus Christi 4 1,189,157 99,724 104,979 8.8% 69,823 0 0 $17.47

Dallas/Ft Worth 416 118,696,600 21,806,011 23,250,077 19.6% (63,999) 1,369,656 725,517 $22.28

Davenport/Molin 2 62,564 7,362 7,362 11.8% 0 0 0 $17.00

Dayton 55 5,482,187 800,817 913,902 16.7% 15,963 0 0 $18.94

Deltona/Dayton 3 221,665 84,909 84,909 38.3% 1,675 0 0 $18.20

Denver 298 56,926,794 7,661,664 8,570,326 15.1% 1,400,939 1,070,355 596,043 $24.08

Des Moines 47 8,546,557 657,486 670,231 7.8% (73,681) 0 550,000 $16.05

Detroit 214 46,219,467 6,841,193 7,227,762 15.6% (374,377) 54,220 166,107 $22.10

Duluth 10 1,049,402 65,975 65,975 6.3% (4,308) 0 0 $18.66

East Bay/Oaklan 110 26,956,890 3,349,774 3,639,157 13.5% (509,624) 0 0 $28.33

El Paso 4 1,043,826 129,711 129,711 12.4% (20,618) 0 0 $14.00

Erie 4 645,764 45,000 45,000 7.0% 0 0 0 $0.00

Evansville 9 1,762,410 161,725 164,958 9.4% (4,633) 0 0 $12.63

Fayetteville 6 357,954 87,647 87,647 24.5% (31,349) 0 0 $20.76

Fayetteville/Sprin 18 1,605,684 201,289 203,089 12.6% 131,267 0 0 $19.63

Fort Smith 0 0 0 0 0.0% 0 0 0 $0.00

Fort Wayne 17 2,275,670 163,464 177,564 7.8% 21,717 0 0 $16.77

Fresno 23 2,507,728 301,754 408,857 16.3% (70,943) 0 0 $25.45

Green Bay 9 908,034 78,459 108,699 12.0% 61,000 59,000 0 $16.08


Existing Inventory Vacancy






FIGURES AT A GLANCE




Greensboro/Win 62 7,587,670 997,486 1,027,860 13.5% 50,894 25,000 0 $17.19

Greenville/Sparta 66 6,492,755 1,051,468 1,141,700 17.6% (176,279) 107,280 0 $20.74

Hampton Roads 152 13,818,992 2,160,204 2,246,744 16.3% 278,339 495,887 0 $21.43

Hartford 70 18,074,821 2,291,663 2,355,301 13.0% (184,596) 43,000 0 $20.69

Hawaii 40 9,372,704 683,938 722,634 7.7% 205,396 256,118 0 $38.74

Houston 354 108,840,005 15,561,133 16,714,484 15.4% (206,456) 103,681 2,073,237 $28.84

Huntington/Ash 8 797,181 38,897 38,897 4.9% 4,558 0 0 $14.50

Huntsville 15 1,253,175 341,412 341,412 27.2% 15,664 0 0 $22.90

Indianapolis 171 25,033,810 3,604,274 3,786,997 15.1% 1,269 0 0 $19.12

Inland Empire (C 112 8,431,586 2,448,179 2,515,097 29.8% 76,203 46,102 178,000 $26.84

Jackson 39 4,458,329 748,249 775,563 17.4% (230,177) 0 0 $19.71

Jacksonville (Flor 95 16,398,226 2,330,539 2,417,335 14.7% 178,165 0 0 $20.15

Kansas City 134 23,391,914 3,935,563 4,236,199 18.1% 71,407 0 99,422 $21.23

Killeen/Temple/F 0 0 0 0 0.0% 0 0 0 $0.00

Kingsport/Bristol 1 40,148 7,477 7,477 18.6% 0 0 0 $15.84

Knoxville 22 3,192,357 516,687 523,463 16.4% 196,854 296,067 0 $18.77

Lafayette 4 190,860 24,586 24,586 12.9% (13,911) 0 0 $23.99

Las Vegas 79 8,774,219 2,239,534 2,283,155 26.0% (100,728) 0 310,000 $30.51

Lexington/Fayet 61 3,117,412 427,973 446,634 14.3% (43,171) 30,000 0 $19.08

Lincoln 12 2,359,584 61,387 61,387 2.6% (5,993) 0 0 $15.48

Little Rock/N Litt 10 1,691,347 20,177 20,177 1.2% 2,823 0 49,000 $15.75

Long Island (New 191 38,295,783 3,326,373 4,172,840 10.9% (130,352) 30,000 788,516 $30.71

Los Angeles 1,062 182,673,982 26,663,430 28,981,198 15.9% (1,532,741) 289,520 1,258,114 $31.00

Louisville 105 11,453,373 1,529,836 1,716,431 15.0% 89,616 212,391 0 $20.20

Lubbock 6 551,848 16,006 16,006 2.9% 10,948 0 0 $15.67

Madison 55 5,798,529 578,304 613,906 10.6% 26,848 0 0 $20.23

Marin/Sonoma 40 3,073,933 684,192 914,893 29.8% 14,060 0 0 $26.77

McAllen/Edinbur 2 395,000 130,054 130,054 32.9% 1,342 0 0 $20.84

Memphis 79 10,269,774 1,208,571 1,268,533 12.4% 4,991 49,600 0 $19.79

Miami-Dade Cou 146 26,309,876 5,371,489 5,724,784 21.8% 441,920 1,950,929 919,162 $36.59

Milwaukee 88 13,345,132 1,644,050 1,671,370 12.5% (66,241) 0 0 $19.62

Minneapolis 168 46,164,002 3,848,137 4,084,063 8.8% 418,393 270,108 0 $18.63

Mobile 11 1,639,925 159,105 160,914 9.8% 1,370 0 0 $18.23

Montgomery 8 741,699 50,567 58,364 7.9% 29,098 0 0 $18.62

Myrtle Beach/Co 3 322,030 30,241 30,241 9.4% 9,091 0 0 $19.39

Nashville 127 19,405,170 2,238,117 2,613,604 13.5% 57,244 154,737 0 $21.86

New Orleans/M 28 10,905,228 870,385 940,358 8.6% (2,813) 0 0 $18.65

New York City 450 297,272,430 23,589,908 28,038,543 9.4% (2,298,393) 1,429,348 8,505,786 $49.40

Northern New Je 897 153,234,245 21,423,989 24,473,641 16.0% (294,644) 140,665 393,696 $26.37

Ocala 3 140,507 109,723 109,723 78.1% (95,896) 0 0 $15.92

Oklahoma City 30 4,686,884 634,375 662,379 14.1% 21,562 0 1,800,000 $18.64

Olympia 1 210,759 0 0 0.0% 0 0 0 $0.00

Omaha/Council 57 8,456,925 790,389 799,389 9.5% 97,076 95,000 63,000 $20.03

Orange (Californ 351 49,394,046 9,426,808 10,008,017 20.3% 202,248 0 0 $25.45

Orlando 183 23,870,843 4,229,460 4,769,881 20.0% (517,386) 22,500 105,000 $22.26

Palm Beach Cou 132 13,358,989 2,791,708 2,949,101 22.1% 61,426 120,845 413,950 $31.89

Pensacola 6 314,004 0 0 0.0% 0 0 0 $22.00

Peoria 6 846,261 63,839 63,839 7.5% (620) 0 0 $13.03








FIGURES AT A GLANCE




Philadelphia 980 124,340,483 15,904,548 17,073,486 13.7% (840,542) 591,370 281,000 $24.75

Phoenix 258 41,701,390 9,852,950 10,643,328 25.5% 225,752 1,243,369 439,070 $24.80

Pittsburgh 206 33,597,949 3,268,161 3,392,009 10.1% 879,809 446,542 110,000 $21.71

Port St Lucie/For 20 948,121 341,082 345,529 36.4% 34,997 0 0 $17.27

Portland 182 28,817,866 3,267,242 3,475,892 12.1% (5,987) 368,800 62,200 $23.69

Portland/South P 33 3,175,844 375,744 396,334 12.5% (39,472) 0 0 $19.21

Providence 32 6,696,430 1,080,870 1,083,246 16.2% (145,081) 0 30,769 $23.06

Raleigh/Durham 298 30,020,150 4,430,939 4,666,912 15.5% 529,516 159,861 189,044 $21.59

Reno/Sparks 16 1,224,724 227,197 246,292 20.1% (849) 0 0 $20.06

Richmond VA 146 19,773,816 2,568,118 2,839,222 14.4% 581,383 210,000 0 $19.04

Roanoke 6 769,895 22,419 22,419 2.9% 779 0 0 $23.01

Rochester 41 8,959,090 478,427 487,967 5.4% (48,723) 0 0 $17.35

Sacramento 194 25,779,586 4,868,914 5,062,738 19.6% (54,458) 80,000 215,000 $25.23

Salinas 0 0 0 0 0.0% 0 0 0 $0.00

Salt Lake City 160 17,848,198 1,946,730 2,005,744 11.2% 255,015 319,329 561,500 $22.43

San Antonio 65 10,172,996 1,632,073 1,691,205 16.6% 224,975 275,229 396,250 $21.20

San Diego 259 31,596,796 5,578,465 6,025,682 19.1% 859,064 534,225 0 $30.98

San Francisco 306 73,369,901 9,364,506 11,006,484 15.0% (384,947) 112,410 467,097 $30.80

San Luis Obispo/ 0 0 0 0 0.0% 0 0 0 $0.00

Santa Barbara/St 2 102,200 10,232 10,232 10.0% 24,044 0 0 $24.24

Santa Cruz/Wats 0 0 0 0 0.0% 0 0 0 $0.00

Savannah 8 294,808 92,752 92,752 31.5% 8,802 0 72,072 $22.48

Seattle/Puget So 245 54,007,187 8,603,598 9,273,607 17.2% 1,228,870 1,520,085 1,909,179 $30.50

Shreveport/Boss 4 641,525 20,327 20,327 3.2% 15,484 0 0 $12.13

South Bay/San Jo 130 23,088,224 5,279,527 5,575,275 24.1% 455,687 0 0 $30.83

South Bend/Mish 15 1,239,104 217,159 217,159 17.5% (8,410) 0 0 $18.53

Southwest Florid 72 3,959,939 779,066 810,966 20.5% 39,265 40,606 0 $22.45

Spokane 10 1,372,864 325,314 333,513 24.3% 35,146 0 0 $21.34

Springfield 6 785,193 80,108 80,108 10.2% (19,357) 0 0 $18.29

St. Louis 238 37,132,916 4,273,460 4,545,101 12.2% 198,392 485,250 550,000 $21.90

Stockton/Modes 15 1,160,396 325,769 325,769 28.1% 16,360 0 0 $21.22

Syracuse 29 4,080,568 337,134 337,134 8.3% 31,304 60,000 162,366 $17.55

Tallahassee 7 560,342 90,868 90,868 16.2% (19,502) 0 0 $24.66

Tampa/St Peters 206 31,133,059 4,924,393 5,196,439 16.7% 137,021 0 88,000 $23.43

Toledo 18 3,060,083 367,952 370,122 12.1% 15,679 0 0 $18.15

Tucson 20 2,526,175 213,395 252,434 10.0% (13,851) 0 170,000 $22.68

Tulsa 21 6,629,166 917,417 920,935 13.9% (46,997) 95,386 0 $15.71

Utica/Rome 3 283,760 0 0 0.0% 0 0 0 $0.00

Visalia/Porterville 0 0 0 0 0.0% 0 0 0 $0.00

Washington 1,354 246,502,610 34,092,806 37,919,641 15.4% 4,432,269 3,970,955 5,612,683 $38.17

West Michigan 77 8,456,180 854,668 865,459 10.2% 134,547 138,300 88,000 $19.91

Westchester/So 396 60,883,320 7,476,237 8,570,936 14.1% (480,058) 174,000 718,494 $32.34

Wichita 9 1,322,237 88,953 88,953 6.7% (5,331) 0 0 $13.67

Wilmington 16 770,327 194,481 194,481 25.2% 10,515 69,525 0 $22.25

Yakima 0 0 0 0 0.0% 0 0 0 $0.00

Youngstown/Wa 8 602,838 121,981 121,981 20.2% 92,314 160,000 0 $13.75

Totals 16,806 3,090,900,015 429,398,117 470,101,027 15.2% 8,115,806 27,426,097 36,630,984 $26.78 Source: CoStar Property®







FIGURES AT A GLANCE

Class B Market Statistics Third Quarter 2010



Albany/Schenect 1,595 33,295,223 2,476,010 2,505,349 7.5% (369,909) 0 12,000 $14.75

Albuquerque 1,566 22,699,835 2,909,148 3,003,242 13.2% (5,857) 264,955 47,000 $16.32

Anchorage 239 7,652,150 341,691 354,313 4.6% (83,224) 0 0 $24.38

Asheville 713 7,423,186 582,093 585,585 7.9% (57,817) 43,088 0 $14.82

Atlanta 5,094 120,812,416 18,793,482 19,665,374 16.3% (517,089) 92,190 219,698 $16.68

Augusta/Richmo 670 6,387,887 798,712 798,712 12.5% 85,284 27,030 21,922 $12.21

Austin 1,489 36,125,486 4,778,728 4,898,079 13.6% 312,331 65,198 133,445 $21.60

Bakersfield 434 6,206,347 568,315 598,460 9.6% (120,582) 20,727 8,000 $19.26

Baltimore 2,577 59,254,293 7,228,986 7,528,245 12.7% 277,332 345,381 396,053 $19.82

Baton Rouge 408 5,304,626 1,124,605 1,130,379 21.3% (19,652) 5,866 56,849 $16.07

Beaumont/Port A 81 2,240,087 157,390 157,390 7.0% (12,639) 0 0 $13.80

Birmingham 637 17,571,612 1,827,033 1,913,450 10.9% 23,199 27,958 8,201 $16.06

Boise City/Namp 1,064 16,856,787 2,335,884 2,351,460 13.9% (66,988) 36,656 100,000 $15.12

Boston 4,205 150,709,185 16,342,856 17,346,926 11.5% (263,667) 76,908 68,208 $19.43

Bremerton/Silver 112 1,992,176 238,872 238,872 12.0% 43,975 0 0 $19.39

Broward County 1,173 32,818,060 4,181,525 4,456,791 13.6% 341,822 24,737 0 $22.05

Brownsville/Harl 118 1,558,709 131,427 141,851 9.1% (44,517) 0 0 $14.56

Buffalo/Niagara 693 18,850,481 2,063,410 2,083,821 11.1% (54,968) 0 39,605 $14.17

Charleston WV 553 8,925,007 492,095 499,118 5.6% (90,125) 0 0 $14.64

Charleston/N Ch 1,167 11,404,475 1,457,102 1,485,098 13.0% 77,536 65,696 9,000 $17.37

Charlotte 1,897 41,111,416 5,883,121 6,026,985 14.7% 83,109 100,205 17,837 $17.40

Chattanooga 254 6,509,099 764,052 770,652 11.8% (31,224) 54,000 0 $14.12

Chicago 5,639 197,010,183 29,540,505 31,255,753 15.9% (24,861) 268,555 79,500 $20.15

Cincinnati 975 34,324,979 4,545,097 4,780,354 13.9% 36,355 282,134 42,536 $14.25

Cleveland 1,716 66,111,332 9,523,087 9,737,433 14.7% 194,940 38,000 147,616 $17.09

Colorado Springs 905 18,051,359 2,997,992 3,078,880 17.1% 236,804 0 13,000 $15.01

Columbia 1,352 20,907,097 1,630,766 1,654,110 7.9% (47,084) 13,193 0 $13.96

Columbus 1,133 35,575,356 4,162,625 4,285,845 12.0% 132,484 6,300 56,099 $15.27

Columbus GA 132 2,470,388 228,065 255,865 10.4% 56,645 2,950 0 $13.00

Corpus Christi 341 6,227,192 518,727 553,464 8.9% (155,389) 0 0 $13.64

Dallas/Ft Worth 4,333 163,311,151 29,341,615 30,259,185 18.5% 607,068 407,270 767,969 $17.71

Davenport/Molin 197 4,154,328 452,974 455,230 11.0% (19,853) 0 0 $11.19

Dayton 448 12,756,739 2,028,827 2,101,439 16.5% (152,853) 4,000 0 $15.38

Deltona/Dayton 984 7,811,085 704,428 713,160 9.1% 40,726 0 0 $13.83

Denver 3,704 99,574,282 14,713,438 15,234,878 15.3% (413,111) 32,465 188,757 $18.20

Des Moines 556 19,440,303 1,449,158 1,485,072 7.6% 55,963 12,000 37,558 $12.31

Detroit 2,940 96,375,435 20,814,907 21,352,683 22.2% (298,429) 82,055 210,394 $18.45

Duluth 61 2,660,452 137,107 137,107 5.2% (16,668) 0 0 $13.04

East Bay/Oaklan 1,842 56,102,418 8,104,174 8,513,541 15.2% 38,918 181,681 28,559 $21.68

El Paso 425 6,429,327 422,205 422,205 6.6% 430,666 429,810 33,473 $14.18

Erie 197 3,463,464 114,713 114,713 3.3% (6,414) 0 0 $10.55

Evansville 387 6,323,613 525,494 530,127 8.4% (29,567) 0 0 $9.78

Fayetteville 496 3,892,558 373,852 373,852 9.6% 73,737 19,476 0 $15.53

Fayetteville/Sprin 399 6,398,119 847,844 869,083 13.6% 27,483 4,957 21,395 $14.88

Fort Smith 255 2,940,413 82,655 85,289 2.9% 50,808 3,000 0 $10.08

Fort Wayne 367 7,962,122 1,125,910 1,127,610 14.2% 75,023 0 0 $13.47

Fresno 825 12,753,406 1,953,648 2,017,619 15.8% (70,964) 16,000 0 $18.77

Green Bay 477 8,509,497 754,825 805,932 9.5% (17,790) 8,400 0 $13.56








FIGURES AT A GLANCE




Greensboro/Win 908 24,654,689 3,128,843 3,178,528 12.9% 130,582 64,505 27,000 $13.91

Greenville/Sparta 1,814 19,025,779 2,024,256 2,083,126 10.9% 174,503 0 19,087 $13.13

Hampton Roads 1,422 23,013,648 2,836,223 2,919,978 12.7% 48,473 98,894 167,908 $16.07

Hartford 1,218 39,386,829 3,663,218 3,869,756 9.8% 24,082 50,960 31,400 $17.80

Hawaii 406 17,017,350 708,024 725,960 4.3% 146,283 89,811 92,262 $31.71

Houston 2,163 111,600,603 14,937,732 15,827,299 14.2% 374,853 231,883 94,643 $18.78

Huntington/Ash 594 4,964,733 216,081 216,081 4.4% (10,164) 0 3,000 $10.86

Huntsville 374 10,756,193 780,934 891,946 8.3% 96,637 90,136 15,000 $15.03

Indianapolis 2,214 48,686,422 4,810,798 4,881,399 10.0% 400,541 165,165 103,405 $16.44

Inland Empire (C 3,145 42,082,274 6,728,236 6,863,893 16.3% 406,868 105,508 107,275 $19.93

Jackson 744 12,124,359 1,142,276 1,170,811 9.7% (109,083) 0 0 $16.08

Jacksonville (Flor 1,469 28,778,573 4,499,998 4,596,431 16.0% 73,813 10,124 48,763 $17.65

Kansas City 1,767 62,151,187 7,723,930 7,918,061 12.7% (172,189) 16,880 0 $17.22

Killeen/Temple/F 97 1,070,942 104,955 113,802 10.6% (15,003) 12,000 0 $7.78

Kingsport/Bristol 126 2,640,303 159,000 159,000 6.0% 40,110 0 0 $10.93

Knoxville 623 13,067,210 2,071,372 2,133,585 16.3% (1,662) 91,703 86,148 $15.53

Lafayette 96 2,587,742 216,693 238,583 9.2% (54,651) 0 0 $14.78

Las Vegas 2,149 41,671,816 7,866,883 8,187,774 19.6% (372,912) 191,967 564,872 $20.30

Lexington/Fayet 459 8,573,817 1,033,826 1,043,049 12.2% (41,968) 0 0 $15.56

Lincoln 473 9,766,064 734,664 745,992 7.6% 31,481 41,643 190,825 $14.04

Little Rock/N Litt 248 9,573,237 555,455 579,855 6.1% (6,584) 26,772 12,000 $14.81

Long Island (New 3,279 67,724,523 5,462,318 5,755,730 8.5% 169,123 200,490 232,841 $24.83

Los Angeles 5,326 147,540,371 17,268,874 18,176,738 12.3% (1,041,727) 90,657 248,671 $24.73

Louisville 912 21,598,639 2,865,493 2,998,115 13.9% (49,493) 30,422 3,838 $14.91

Lubbock 183 4,573,629 185,980 196,735 4.3% 56,950 40,847 16,047 $12.42

Madison 772 21,158,460 1,736,377 1,766,099 8.3% (67,987) 0 0 $14.84

Marin/Sonoma 961 17,786,437 2,744,462 2,946,055 16.6% (36,618) 16,000 0 $23.88

McAllen/Edinbur 295 4,216,982 348,296 348,296 8.3% (53,956) 0 0 $15.77

Memphis 1,092 27,102,919 3,136,903 3,308,408 12.2% 154,703 12,500 67,300 $15.68

Miami-Dade Cou 1,178 46,236,466 6,597,010 6,945,370 15.0% 594,435 3,789 66,720 $25.13

Milwaukee 1,354 44,269,902 4,617,871 4,791,652 10.8% (139,590) 0 238,159 $15.76

Minneapolis 1,938 87,192,287 8,210,564 8,354,537 9.6% 953,879 151,575 103,700 $15.24

Mobile 861 8,668,676 821,304 855,299 9.9% (27,308) 3,600 2,885 $13.16

Montgomery 425 8,192,441 1,025,325 1,027,505 12.5% (67,004) 0 6,250 $14.04

Myrtle Beach/Co 267 3,183,321 306,224 312,369 9.8% (39,112) 13,738 4,455 $16.92

Nashville 1,217 29,830,210 3,212,241 3,297,531 11.1% 259,592 92,376 226,314 $17.88

New Orleans/M 480 13,782,239 1,800,205 1,907,381 13.8% (132,251) 27,020 83,220 $15.89

New York City 1,427 153,319,160 8,417,785 9,548,870 6.2% (235,572) 79,167 65,506 $40.24

Northern New Je 4,330 111,858,419 15,291,389 15,708,737 14.0% (5,820) 218,596 231,330 $21.53

Ocala 117 1,160,395 130,162 130,162 11.2% 11,876 0 0 $14.40

Oklahoma City 1,339 29,689,495 2,685,143 2,722,674 9.2% (306) 63,709 179,300 $14.37

Olympia 385 5,421,009 555,388 560,120 10.3% 23,925 130,000 0 $19.52

Omaha/Council 734 23,739,449 2,385,141 2,398,345 10.1% 37,845 24,398 60,422 $15.82

Orange (Californ 2,878 75,252,675 11,507,814 11,707,204 15.6% (420,498) 84,410 373,583 $22.32

Orlando 2,517 45,725,008 6,871,422 7,107,066 15.5% 412,409 414,812 53,150 $18.70

Palm Beach Cou 1,055 28,507,775 5,762,788 5,845,422 20.5% (45,458) 37,634 72,000 $24.46

Pensacola 547 4,866,845 519,805 551,435 11.3% 25,190 1,955 0 $15.40

Peoria 243 6,907,060 345,289 371,048 5.4% (41,042) 0 0 $11.56








FIGURES AT A GLANCE




Philadelphia 7,074 161,102,515 21,117,003 21,890,292 13.6% (399,049) 182,785 102,798 $19.46

Phoenix 4,390 89,993,974 19,163,690 19,746,836 21.9% 81,681 82,989 110,938 $20.48

Pittsburgh 2,441 66,029,354 6,607,639 6,750,110 10.2% 57,111 92,632 68,000 $17.61

Port St Lucie/For 422 5,396,360 713,974 721,117 13.4% 98,157 16,255 0 $15.80

Portland 1,292 39,671,233 4,942,576 5,292,100 13.3% 229,160 259,700 8,723 $18.12

Portland/South P 417 9,907,534 929,702 951,902 9.6% (104,022) 8,100 18,800 $14.23

Providence 530 14,488,248 1,596,403 1,725,728 11.9% (56,022) 34,516 33,000 $18.07

Raleigh/Durham 1,860 39,292,191 5,144,445 5,284,959 13.5% (33,280) 196,114 98,904 $17.06

Reno/Sparks 488 7,445,024 1,357,593 1,434,693 19.3% (111,143) 4,253 0 $18.66

Richmond VA 1,118 26,078,259 3,202,857 3,246,905 12.5% (221,362) 90,551 104,227 $15.11

Roanoke 144 3,309,028 238,610 238,610 7.2% 50,404 0 0 $15.91

Rochester 696 22,210,914 2,474,459 2,508,728 11.3% 164,811 246,901 112,460 $13.34

Sacramento 1,718 45,272,065 7,732,177 7,857,502 17.4% 259,159 276,255 4,800 $21.67

Salinas 238 4,417,667 380,123 388,262 8.8% 5,714 0 0 $23.07

Salt Lake City 2,460 51,406,468 4,075,449 4,135,206 8.0% 960,975 391,318 131,610 $15.40

San Antonio 1,236 37,924,709 4,192,002 4,265,665 11.2% 144,477 213,789 148,166 $18.35

San Diego 1,857 52,488,552 8,206,574 8,653,265 16.5% 30,211 34,726 59,176 $24.50

San Francisco 1,439 63,960,754 8,941,337 9,397,428 14.7% 49,805 23,011 59,855 $29.22

San Luis Obispo/ 119 1,386,257 175,752 177,303 12.8% 22,801 56,100 0 $18.54

Santa Barbara/St 1,206 10,415,451 349,596 496,777 4.8% (5,571) 0 0 $22.27

Santa Cruz/Wats 425 5,285,007 528,943 538,968 10.2% (38,970) 0 0 $19.48

Savannah 425 4,754,602 696,918 712,960 15.0% 60,197 75,000 0 $17.26

Seattle/Puget So 2,839 88,890,236 9,891,968 10,869,248 12.2% 266,499 127,723 354,321 $22.83

Shreveport/Boss 66 1,860,016 150,079 168,879 9.1% (29,848) 8,800 7,200 $12.63

South Bay/San Jo 1,820 58,538,111 6,182,617 6,923,792 11.8% 913,788 621,965 397,655 $24.15

South Bend/Mish 184 2,738,823 299,731 301,593 11.0% 105,094 0 0 $13.44

Southwest Florid 1,622 18,823,772 3,390,267 3,424,523 18.2% 3,022 88,896 75,644 $15.79

Spokane 1,005 16,089,087 1,346,589 1,360,199 8.5% 54,497 22,400 35,000 $15.32

Springfield 329 4,300,432 624,662 628,124 14.6% (96,566) 9,800 27,747 $13.59

St. Louis 1,831 55,895,374 6,632,279 6,764,620 12.1% 419,514 69,680 17,726 $16.91

Stockton/Modes 590 9,145,427 1,544,270 1,569,833 17.2% (128,232) 0 0 $16.46

Syracuse 616 13,763,429 1,176,357 1,176,357 8.5% 157,327 6,150 5,000 $14.22

Tallahassee 1,666 18,027,035 1,174,938 1,210,896 6.7% 38,562 69,650 0 $16.07

Tampa/St Peters 4,574 64,889,303 9,787,355 10,136,090 15.6% 200,721 53,833 10,299 $18.57

Toledo 484 10,422,817 754,246 777,145 7.5% (23,582) 14,155 8,000 $14.85

Tucson 1,214 15,403,856 2,159,877 2,196,406 14.3% (100,879) 106,951 65,288 $19.43

Tulsa 598 26,395,642 3,900,585 4,019,984 15.2% (29,377) 24,645 16,532 $13.67

Utica/Rome 246 4,611,053 69,365 69,365 1.5% (9,111) 0 13,381 $10.70

Visalia/Porterville 125 943,331 122,687 138,371 14.7% 18,296 0 0 $15.59

Washington 4,487 167,087,241 17,172,453 18,231,718 10.9% (165,889) 121,488 124,293 $27.49

West Michigan 1,923 38,833,671 5,157,470 5,257,553 13.5% 39,186 75,760 9,000 $13.95

Westchester/So 1,884 58,793,601 6,232,026 6,332,805 10.8% 85,073 9,550 51,325 $24.20

Wichita 600 11,254,845 1,350,632 1,381,466 12.3% 7,042 0 0 $12.50

Wilmington 589 7,161,130 688,556 702,798 9.8% 81,986 4,246 11,385 $15.78

Yakima 436 3,487,777 164,760 164,760 4.7% 9,727 0 0 $12.23

Youngstown/Wa 389 5,552,822 412,955 418,955 7.5% (26,721) 0 0 $11.26

Totals 178,558 4,555,088,700 576,480,691 599,365,189 13.2% 4,806,535 9,809,174 8,955,206 $19.45 Source: CoStar Property®







FIGURES AT A GLANCE

Class C Market Statistics Third Quarter 2010



Albany/Schenect 1,683 11,717,287 585,982 585,982 5.0% 143,542 39,521 0 $12.92

Albuquerque 1,071 6,505,092 757,534 759,434 11.7% (126,860) 0 0 $11.90

Anchorage 261 1,891,325 93,140 93,140 4.9% 21,754 0 0 $15.59

Asheville 212 1,407,247 188,139 188,139 13.4% 39,974 0 0 $12.41

Atlanta 7,343 46,884,883 7,382,720 7,430,156 15.8% (494,934) 0 0 $14.28

Augusta/Richmo 562 2,591,214 125,802 126,072 4.9% (31,717) 0 0 $9.92

Austin 1,638 13,083,136 894,663 909,168 6.9% 9 0 0 $18.65

Bakersfield 504 3,288,579 195,742 195,742 6.0% (83,893) 0 0 $13.85

Baltimore 2,669 23,597,033 2,393,641 2,411,075 10.2% 32,167 0 0 $17.79

Baton Rouge 970 8,557,236 896,914 929,868 10.9% 139,620 0 0 $13.51

Beaumont/Port A 544 3,722,447 44,187 44,187 1.2% 18,423 0 0 $12.61

Birmingham 2,183 19,090,388 2,118,406 2,162,175 11.3% (189,621) 0 0 $12.15

Boise City/Namp 1,637 6,381,500 663,001 666,901 10.5% (47,448) 0 0 $12.40

Boston 6,399 71,195,116 4,520,227 4,687,918 6.6% (167,867) 0 0 $16.08

Bremerton/Silver 262 2,217,035 198,142 199,942 9.0% (18,261) 0 0 $14.92

Broward County 3,027 23,201,223 1,637,437 1,638,979 7.1% 17,881 0 0 $19.18

Brownsville/Harl 87 554,501 34,913 34,913 6.3% (1,876) 0 0 $12.68

Buffalo/Niagara 691 6,183,690 512,724 512,924 8.3% 30,381 0 0 $12.25

Charleston WV 381 2,543,191 173,028 184,378 7.2% (14,501) 0 0 $9.63

Charleston/N Ch 579 2,701,536 267,603 272,403 10.1% (45,698) 0 0 $13.24

Charlotte 2,539 16,892,712 1,439,731 1,490,183 8.8% (119,584) 0 0 $14.65

Chattanooga 489 3,814,511 325,811 327,911 8.6% 36,692 0 0 $11.24

Chicago 5,646 84,915,035 9,149,121 9,383,890 11.1% (13,995) 0 0 $17.10

Cincinnati 3,363 30,652,739 2,526,259 2,536,595 8.3% 36,174 0 0 $12.18

Cleveland 3,259 37,378,643 3,169,259 3,352,052 9.0% 76,806 0 0 $13.50

Colorado Springs 668 3,891,547 368,401 369,303 9.5% 106,697 0 0 $11.62

Columbia 855 4,572,147 397,988 402,432 8.8% 7,107 0 0 $11.99

Columbus 2,515 29,394,862 2,662,599 2,710,554 9.2% 46,837 0 0 $13.58

Columbus GA 113 639,424 91,927 201,447 31.5% (84,328) 0 0 $9.94

Corpus Christi 222 2,119,107 281,173 281,173 13.3% (17,964) 0 0 $10.49

Dallas/Ft Worth 4,502 45,940,682 5,274,348 5,321,726 11.6% 93,881 0 0 $14.93

Davenport/Molin 163 1,942,706 367,404 367,404 18.9% (2,293) 0 0 $9.28

Dayton 2,399 22,655,903 2,191,623 2,210,489 9.8% (24,504) 0 0 $11.63

Deltona/Dayton 579 2,315,905 145,269 145,269 6.3% 7,120 0 0 $11.75

Denver 2,787 22,041,841 2,059,189 2,075,361 9.4% 270,418 0 0 $14.80

Des Moines 304 3,169,005 447,451 449,780 14.2% (52,607) 0 0 $10.82

Detroit 4,203 39,127,244 5,650,185 5,736,664 14.7% 45,939 0 0 $15.30

Duluth 320 2,705,191 149,897 149,897 5.5% (29,821) 0 0 $10.49

East Bay/Oaklan 3,695 29,627,701 2,049,868 2,078,257 7.0% (110,479) 0 0 $19.08

El Paso 1,707 12,217,048 969,413 969,413 7.9% 57,780 0 0 $11.56

Erie 180 1,519,554 49,263 49,263 3.2% 15,602 0 0 $12.65

Evansville 204 1,507,287 276,005 276,005 18.3% 8,782 0 0 $9.59

Fayetteville 322 1,363,326 93,287 93,287 6.8% 39,872 0 0 $11.37

Fayetteville/Sprin 491 2,681,213 368,848 371,754 13.9% (18,328) 0 0 $11.72

Fort Smith 136 944,627 110,412 110,412 11.7% 16,740 0 0 $9.99

Fort Wayne 548 5,999,371 252,811 252,811 4.2% (1,978) 0 0 $9.91

Fresno 1,961 17,094,150 1,149,650 1,163,925 6.8% (115,990) 0 0 $13.18

Green Bay 321 2,490,876 413,259 413,259 16.6% (13,804) 0 0 $10.25








FIGURES AT A GLANCE




Greensboro/Win 2,921 18,437,164 1,737,850 1,763,462 9.6% (53,437) 0 0 $11.82

Greenville/Sparta 1,681 7,607,837 737,342 741,145 9.7% 72,505 0 0 $10.29

Hampton Roads 1,402 8,450,449 628,706 631,651 7.5% (122,459) 0 0 $12.81

Hartford 3,399 26,711,483 2,789,784 2,801,169 10.5% (81,721) 0 0 $15.17

Hawaii 561 6,608,537 324,503 325,953 4.9% 96,479 0 0 $25.30

Houston 2,500 40,550,961 4,396,920 4,433,735 10.9% 139,948 0 0 $15.50

Huntington/Ash 352 2,390,318 80,197 80,197 3.4% (11,340) 0 0 $11.43

Huntsville 235 2,436,191 344,127 344,127 14.1% (6,158) 0 0 $11.72

Indianapolis 2,274 19,566,517 2,001,699 2,013,766 10.3% 3,225 0 0 $14.66

Inland Empire (C 2,308 16,107,072 1,508,560 1,530,639 9.5% (71,678) 0 0 $15.43

Jackson 741 5,028,589 372,750 372,750 7.4% (21,297) 0 0 $12.46

Jacksonville (Flor 2,022 13,478,148 2,086,835 2,088,435 15.5% 37,140 0 0 $15.97

Kansas City 1,787 19,157,408 2,120,943 2,157,067 11.3% (173,352) 3,850 0 $13.21

Killeen/Temple/F 137 745,330 82,448 82,448 11.1% 14,016 0 0 $7.98

Kingsport/Bristol 291 2,208,111 118,481 118,481 5.4% (2,010) 0 0 $11.00

Knoxville 1,853 16,194,261 589,215 620,369 3.8% 41,900 0 0 $12.25

Lafayette 265 2,408,053 194,660 211,904 8.8% (56,499) 0 0 $13.20

Las Vegas 1,495 7,567,824 978,859 995,046 13.1% (75,264) 0 0 $15.44

Lexington/Fayet 557 4,744,153 457,955 460,055 9.7% (173,492) 0 0 $14.40

Lincoln 196 1,861,571 112,975 112,975 6.1% 1,708 0 0 $9.81

Little Rock/N Litt 1,760 18,621,672 1,203,614 1,219,109 6.5% (90,850) 0 0 $12.71

Long Island (New 4,178 41,541,540 2,517,746 2,545,914 6.1% (4,262) 0 0 $21.42

Los Angeles 10,277 89,539,940 4,338,068 4,470,912 5.0% (218,499) 0 0 $23.31

Louisville 1,809 17,616,988 1,342,776 1,410,908 8.0% (228,129) 0 0 $12.38

Lubbock 979 5,244,285 236,206 238,372 4.5% (1,075) 0 0 $11.42

Madison 391 3,381,461 360,314 360,314 10.7% 9,009 0 0 $10.81

Marin/Sonoma 1,293 7,761,439 360,788 388,047 5.0% (4,400) 0 0 $21.47

McAllen/Edinbur 86 548,287 86,545 95,084 17.3% (41,783) 0 0 $11.39

Memphis 1,022 12,286,530 1,390,917 1,395,242 11.4% 32,491 0 0 $13.08

Miami-Dade Cou 3,059 29,731,338 1,844,123 1,877,633 6.3% (132,295) 0 0 $22.45

Milwaukee 1,804 15,787,686 1,449,312 1,449,312 9.2% (55,121) 0 0 $12.41

Minneapolis 3,428 38,105,923 2,671,980 2,788,311 7.3% 130,037 0 0 $13.95

Mobile 896 4,499,285 404,698 404,698 9.0% (43,134) 0 0 $11.00

Montgomery 689 5,650,460 451,446 468,180 8.3% (29,494) 0 0 $12.07

Myrtle Beach/Co 433 1,930,544 62,429 62,429 3.2% 1,073 0 0 $12.27

Nashville 2,481 19,638,244 1,602,948 1,671,106 8.5% (88,595) 0 0 $15.86

New Orleans/M 1,447 17,201,424 1,375,866 1,384,718 8.1% (118,449) 0 0 $13.40

New York City 1,823 76,843,166 5,812,777 5,991,800 7.8% (58,497) 0 0 $33.77

Northern New Je 8,979 76,094,624 6,256,071 6,310,777 8.3% (23,777) 32,203 0 $19.46

Ocala 383 2,751,483 216,863 216,863 7.9% (69,244) 0 0 $10.96

Oklahoma City 1,610 12,993,649 1,068,242 1,085,644 8.4% (15,676) 0 0 $11.73

Olympia 328 1,935,097 304,144 306,744 15.9% (51,308) 0 0 $13.62

Omaha/Council 559 5,205,676 727,984 727,984 14.0% (6,021) 0 0 $11.18

Orange (Californ 2,413 21,477,329 1,552,854 1,574,905 7.3% (159,150) 0 0 $19.85

Orlando 3,941 24,654,145 2,590,778 2,652,311 10.8% 177,123 0 0 $16.32

Palm Beach Cou 1,517 12,000,582 997,928 1,017,159 8.5% 84,391 0 0 $20.29

Pensacola 1,193 6,301,095 452,314 452,314 7.2% 47,960 0 0 $12.14

Peoria 165 1,780,780 128,373 130,473 7.3% 444 0 0 $10.50








FIGURES AT A GLANCE




Philadelphia 9,217 84,460,484 8,108,801 8,224,413 9.7% 157,881 0 0 $16.93

Phoenix 3,293 22,695,858 3,039,521 3,046,136 13.4% (229,566) 0 0 $15.99

Pittsburgh 3,379 22,367,959 1,939,729 1,941,829 8.7% 250,578 0 0 $14.30

Port St Lucie/For 451 2,330,747 211,725 214,742 9.2% 17,833 0 0 $15.58

Portland 3,027 22,490,394 1,842,170 1,871,249 8.3% 5,955 0 0 $15.11

Portland/South P 1,086 9,184,259 642,607 667,904 7.3% 47,588 0 0 $12.07

Providence 1,663 14,451,960 1,049,115 1,065,203 7.4% 55,239 0 0 $14.81

Raleigh/Durham 1,746 12,496,034 798,711 806,386 6.5% 37,505 0 0 $14.73

Reno/Sparks 492 4,175,763 633,831 634,781 15.2% (119,489) 0 0 $14.87

Richmond VA 1,692 13,037,005 909,732 930,640 7.1% (114,982) 0 0 $12.01

Roanoke 525 5,121,802 490,994 490,994 9.6% (15,406) 0 0 $11.95

Rochester 865 8,373,772 854,251 854,251 10.2% (200,523) 0 0 $11.16

Sacramento 3,083 31,183,669 4,117,810 4,227,546 13.6% (462,807) 0 0 $16.49

Salinas 349 2,179,463 136,147 136,147 6.2% (16,795) 0 0 $18.24

Salt Lake City 1,483 11,346,556 915,286 916,281 8.1% 191,525 0 0 $11.90

San Antonio 1,634 15,966,443 1,059,029 1,081,480 6.8% (81,208) 0 0 $14.22

San Diego 3,199 26,591,358 2,177,888 2,211,671 8.3% (145,075) 0 0 $19.77

San Francisco 1,983 23,276,660 1,319,642 1,345,580 5.8% 105,998 0 0 $29.36

San Luis Obispo/ 609 4,120,247 111,714 117,214 2.8% 2,802 0 0 $16.94

Santa Barbara/St 202 875,867 65,006 65,006 7.4% (2,793) 0 0 $15.99

Santa Cruz/Wats 323 1,806,359 65,376 65,541 3.6% 22,246 0 0 $16.38

Savannah 283 1,603,983 249,126 249,126 15.5% (8,869) 0 0 $13.30

Seattle/Puget So 3,805 27,941,116 2,116,883 2,143,664 7.7% (75,728) 0 0 $18.81

Shreveport/Boss 552 6,657,517 1,071,890 1,094,373 16.4% (8,942) 0 0 $11.38

South Bay/San Jo 2,575 25,733,192 2,371,012 2,559,119 9.9% 149,504 0 0 $21.01

South Bend/Mish 205 1,605,326 188,251 188,251 11.7% 39,829 0 0 $10.06

Southwest Florid 1,294 8,081,839 902,073 908,874 11.2% (12,571) 0 0 $13.54

Spokane 591 3,188,071 181,275 181,385 5.7% 17,111 0 0 $11.19

Springfield 184 1,129,704 155,810 157,675 14.0% 18,798 0 0 $10.97

St. Louis 2,755 30,522,394 2,967,997 2,985,504 9.8% (10,154) 0 0 $14.41

Stockton/Modes 684 5,093,785 566,885 570,685 11.2% (102,131) 0 0 $13.70

Syracuse 461 4,450,175 296,137 296,137 6.7% 134,047 0 0 $11.43

Tallahassee 536 2,315,956 210,003 210,003 9.1% 34,121 0 0 $12.21

Tampa/St Peters 6,731 44,351,169 3,917,383 3,946,569 8.9% 113,454 0 0 $15.59

Toledo 1,954 17,086,532 1,558,426 1,560,166 9.1% 35,536 0 0 $10.47

Tucson 1,142 5,114,201 402,143 408,812 8.0% (66,430) 0 0 $15.20

Tulsa 1,211 8,815,436 843,620 858,260 9.7% 196,236 0 0 $11.10

Utica/Rome 282 2,694,993 157,220 157,220 5.8% 39,161 0 0 $8.38

Visalia/Porterville 796 4,317,628 323,193 323,193 7.5% (28,374) 0 0 $13.71

Washington 3,552 36,720,285 2,926,470 2,986,188 8.1% (234,356) 0 0 $24.05

West Michigan 3,572 28,423,528 3,244,687 3,275,396 11.5% 81,473 0 0 $8.67

Westchester/So 4,104 40,843,400 2,792,883 2,888,013 7.1% (206,464) 0 0 $20.04

Wichita 946 7,457,037 444,129 472,412 6.3% (58,039) 0 0 $10.05

Wilmington 906 3,443,994 183,654 183,654 5.3% 62,906 0 0 $12.77

Yakima 150 737,028 54,076 54,076 7.3% (7,027) 0 0 $10.56

Youngstown/Wa 1,167 7,955,791 385,043 385,043 4.8% (5,452) 0 0 $9.08

Totals 243,853 2,145,129,404 188,586,663 191,865,441 8.9% (2,313,025) 75,574 0 $16.21 Source: CoStar Property®







FIGURES AT A GLANCE

Total Office Market Statistics Third Quarter 2010



Albany/Schenect 3,356 53,343,326 3,467,266 3,584,896 6.7% (198,852) 153,521 12,000 $14.76

Albuquerque 2,661 33,316,486 4,097,980 4,234,629 12.7% (164,536) 264,955 47,000 $15.85

Anchorage 516 12,062,613 634,623 647,245 5.4% 57,137 194,595 0 $25.50

Asheville 938 9,768,353 860,819 864,311 8.8% (25,994) 43,088 0 $15.21

Atlanta 12,931 280,131,514 46,426,471 49,420,184 17.6% (737,604) 1,905,214 327,198 $18.88

Augusta/Richmo 1,243 9,706,862 1,010,800 1,011,070 10.4% 64,333 27,030 21,922 $12.21

Austin 3,355 80,410,862 11,057,233 11,659,856 14.5% 638,673 65,198 213,445 $24.79

Bakersfield 955 10,820,595 905,526 938,939 8.7% (191,030) 51,989 8,000 $18.48

Baltimore 5,594 124,876,316 16,408,295 17,286,632 13.8% 784,297 1,323,143 1,355,221 $21.56

Baton Rouge 1,394 16,204,327 2,446,603 2,573,809 15.9% 124,902 5,866 56,849 $15.98

Beaumont/Port A 630 6,733,261 339,496 339,496 5.0% 16,260 0 0 $14.73

Birmingham 2,897 48,833,871 5,158,209 5,383,697 11.0% (148,539) 27,958 8,201 $16.63

Boise City/Namp 2,717 27,165,905 3,448,076 3,471,255 12.8% 17,265 169,006 100,000 $14.88

Boston 11,363 363,956,207 37,846,894 40,666,972 11.2% (346,971) 1,450,501 1,947,983 $21.27

Bremerton/Silver 374 4,209,211 437,014 438,814 10.4% 25,714 0 0 $17.60

Broward County 4,325 71,244,681 8,647,959 9,127,544 12.8% 374,501 195,997 0 $24.32

Brownsville/Harl 206 2,141,784 193,429 203,853 9.5% (50,001) 0 0 $14.97

Buffalo/Niagara 1,443 33,773,880 3,170,872 3,218,066 9.5% (68,252) 0 39,605 $14.88

Charleston WV 942 12,210,065 688,792 707,165 5.8% (104,539) 0 0 $13.31

Charleston/N Ch 1,818 19,390,914 2,276,459 2,352,255 12.1% 141,253 65,696 9,000 $18.15

Charlotte 4,644 91,548,902 12,673,983 13,168,456 14.4% 767,111 2,150,205 342,147 $18.76

Chattanooga 753 11,371,060 1,212,984 1,221,684 10.7% 4,680 54,000 0 $14.38

Chicago 11,830 445,234,906 65,593,922 71,243,176 16.0% 264,949 922,555 590,250 $22.55

Cincinnati 4,498 90,531,346 10,948,823 11,351,828 12.5% 42,614 282,134 1,132,743 $15.11

Cleveland 5,110 125,908,922 15,275,160 15,780,608 12.5% 161,069 83,000 384,616 $17.19

Colorado Springs 1,628 27,542,895 4,446,905 4,590,623 16.7% 404,717 0 13,000 $15.51

Columbia 2,249 31,250,770 3,089,656 3,127,301 10.0% (88,850) 13,193 0 $14.72

Columbus 3,826 91,127,003 9,893,763 10,227,546 11.2% 213,592 98,300 381,099 $15.85

Columbus GA 249 3,412,813 319,992 457,312 13.4% (27,683) 2,950 0 $12.42

Corpus Christi 567 9,535,456 899,624 939,616 9.9% (103,530) 0 0 $13.60

Dallas/Ft Worth 9,251 327,948,433 56,421,974 58,830,988 17.9% 636,950 1,776,926 1,493,486 $19.38

Davenport/Molin 362 6,159,598 827,740 829,996 13.5% (22,146) 0 0 $10.39

Dayton 2,902 40,894,829 5,021,267 5,225,830 12.8% (161,394) 4,000 0 $14.42

Deltona/Dayton 1,566 10,348,655 934,606 943,338 9.1% 49,521 0 0 $13.89

Denver 6,789 178,542,917 24,434,291 25,880,565 14.5% 1,258,246 1,102,820 784,800 $19.97

Des Moines 907 31,155,865 2,554,095 2,605,083 8.4% (70,325) 12,000 587,558 $13.29

Detroit 7,357 181,722,146 33,306,285 34,317,109 18.9% (626,867) 136,275 376,501 $18.82

Duluth 391 6,415,045 352,979 352,979 5.5% (50,797) 0 0 $14.05

East Bay/Oaklan 5,647 112,687,009 13,503,816 14,230,955 12.6% (581,185) 181,681 28,559 $22.32

El Paso 2,136 19,690,201 1,521,329 1,521,329 7.7% 467,828 429,810 33,473 $12.55

Erie 381 5,628,782 208,976 208,976 3.7% 9,188 0 0 $11.32

Evansville 600 9,593,310 963,224 971,090 10.1% (25,418) 0 0 $10.28

Fayetteville 824 5,613,838 554,786 554,786 9.9% 82,260 19,476 0 $15.65

Fayetteville/Sprin 908 10,685,016 1,417,981 1,443,926 13.5% 140,422 4,957 21,395 $14.73

Fort Smith 391 3,885,040 193,067 195,701 5.0% 67,548 3,000 0 $10.05

Fort Wayne 932 16,237,163 1,542,185 1,557,985 9.6% 94,762 0 0 $13.34

Fresno 2,809 32,355,284 3,405,052 3,590,401 11.1% (257,897) 16,000 0 $17.66

Green Bay 807 11,908,407 1,246,543 1,327,890 11.2% 29,406 67,400 0 $12.88








FIGURES AT A GLANCE




Greensboro/Win 3,891 50,679,523 5,864,179 5,969,850 11.8% 128,039 89,505 27,000 $13.79

Greenville/Sparta 3,561 33,126,371 3,813,066 3,965,971 12.0% 70,729 107,280 19,087 $14.39

Hampton Roads 2,976 45,283,089 5,625,133 5,798,373 12.8% 204,353 594,781 167,908 $17.70

Hartford 4,687 84,173,133 8,744,665 9,026,226 10.7% (242,235) 93,960 31,400 $17.82

Hawaii 1,007 32,998,591 1,716,465 1,774,547 5.4% 448,158 345,929 92,262 $33.48

Houston 5,017 260,991,569 34,895,785 36,975,518 14.2% 308,345 335,564 2,167,880 $22.76

Huntington/Ash 954 8,152,232 335,175 335,175 4.1% (16,946) 0 3,000 $11.46

Huntsville 624 14,445,559 1,466,473 1,577,485 10.9% 106,143 90,136 15,000 $15.22

Indianapolis 4,659 93,286,749 10,416,771 10,682,162 11.5% 405,035 165,165 103,405 $17.17

Inland Empire (C 5,565 66,620,932 10,684,975 10,909,629 16.4% 411,393 151,610 285,275 $20.84

Jackson 1,524 21,611,277 2,263,275 2,319,124 10.7% (360,557) 0 0 $16.82

Jacksonville (Flor 3,586 58,654,947 8,917,372 9,102,201 15.5% 289,118 10,124 48,763 $18.06

Kansas City 3,688 104,700,509 13,780,436 14,311,327 13.7% (274,134) 20,730 99,422 $18.06

Killeen/Temple/F 234 1,816,272 187,403 196,250 10.8% (987) 12,000 0 $7.89

Kingsport/Bristol 418 4,888,562 284,958 284,958 5.8% 38,100 0 0 $11.06

Knoxville 2,498 32,453,828 3,177,274 3,277,417 10.1% 237,092 387,770 86,148 $15.24

Lafayette 365 5,186,655 435,939 475,073 9.2% (125,061) 0 0 $14.39

Las Vegas 3,723 58,013,859 11,085,276 11,465,975 19.8% (548,904) 191,967 874,872 $22.02

Lexington/Fayet 1,077 16,435,382 1,919,754 1,949,738 11.9% (258,631) 30,000 0 $16.04

Lincoln 681 13,987,219 909,026 920,354 6.6% 27,196 41,643 190,825 $13.84

Little Rock/N Litt 2,018 29,886,256 1,779,246 1,819,141 6.1% (94,611) 26,772 61,000 $13.62

Long Island (New 7,648 147,561,846 11,306,437 12,474,484 8.5% 34,509 230,490 1,021,357 $25.75

Los Angeles 16,665 419,754,293 48,270,372 51,628,848 12.3% (2,792,967) 380,177 1,506,785 $27.93

Louisville 2,826 50,669,000 5,738,105 6,125,454 12.1% (188,006) 242,813 3,838 $15.96

Lubbock 1,168 10,369,762 438,192 451,113 4.4% 66,823 40,847 16,047 $12.09

Madison 1,218 30,338,450 2,674,995 2,740,319 9.0% (32,130) 0 0 $15.72

Marin/Sonoma 2,294 28,621,809 3,789,442 4,248,995 14.8% (26,958) 16,000 0 $24.20

McAllen/Edinbur 383 5,160,269 564,895 573,434 11.1% (94,397) 0 0 $16.74

Memphis 2,193 49,659,223 5,736,391 5,972,183 12.0% 192,185 62,100 67,300 $16.09

Miami-Dade Cou 4,383 102,277,680 13,812,622 14,547,787 14.2% 904,060 1,954,718 985,882 $29.75

Milwaukee 3,246 73,402,720 7,711,233 7,912,334 10.8% (260,952) 0 238,159 $15.96

Minneapolis 5,534 171,462,212 14,730,681 15,226,911 8.9% 1,502,309 421,683 103,700 $15.72

Mobile 1,768 14,807,886 1,385,107 1,420,911 9.6% (69,072) 3,600 2,885 $13.27

Montgomery 1,122 14,584,600 1,527,338 1,554,049 10.7% (67,400) 0 6,250 $13.70

Myrtle Beach/Co 703 5,435,895 398,894 405,039 7.5% (28,948) 13,738 4,455 $16.53

Nashville 3,825 68,873,624 7,053,306 7,582,241 11.0% 228,241 247,113 226,314 $18.82

New Orleans/M 1,955 41,888,891 4,046,456 4,232,457 10.1% (253,513) 27,020 83,220 $15.62

New York City 3,700 527,434,756 37,820,470 43,579,213 8.3% (2,592,462) 1,508,515 8,571,292 $43.17

Northern New Je 14,206 341,187,288 42,971,449 46,493,155 13.6% (324,241) 391,464 625,026 $23.54

Ocala 503 4,052,385 456,748 456,748 11.3% (153,264) 0 0 $13.57

Oklahoma City 2,979 47,370,028 4,387,760 4,470,697 9.4% 5,580 63,709 1,979,300 $14.32

Olympia 714 7,566,865 859,532 866,864 11.5% (27,383) 130,000 0 $17.53

Omaha/Council 1,350 37,402,050 3,903,514 3,925,718 10.5% 128,900 119,398 123,422 $16.11

Orange (Californ 5,642 146,124,050 22,487,476 23,290,126 15.9% (377,400) 84,410 373,583 $23.48

Orlando 6,641 94,249,996 13,691,660 14,529,258 15.4% 72,146 437,312 158,150 $19.31

Palm Beach Cou 2,704 53,867,346 9,552,424 9,811,682 18.2% 100,359 158,479 485,950 $26.56

Pensacola 1,746 11,481,944 972,119 1,003,749 8.7% 73,150 1,955 0 $14.12

Peoria 414 9,534,101 537,501 565,360 5.9% (41,218) 0 0 $11.49








FIGURES AT A GLANCE




Philadelphia 17,271 369,903,482 45,130,352 47,188,191 12.8% (1,081,710) 774,155 383,798 $21.09

Phoenix 7,941 154,391,222 32,056,161 33,436,300 21.7% 77,867 1,326,358 550,008 $21.49

Pittsburgh 6,026 121,995,262 11,815,529 12,083,948 9.9% 1,187,498 539,174 178,000 $18.63

Port St Lucie/For 893 8,675,228 1,266,781 1,281,388 14.8% 150,987 16,255 0 $16.22

Portland 4,501 90,979,493 10,051,988 10,639,241 11.7% 229,128 628,500 70,923 $19.48

Portland/South P 1,536 22,267,637 1,948,053 2,016,140 9.1% (95,906) 8,100 18,800 $14.46

Providence 2,225 35,636,638 3,726,388 3,874,177 10.9% (145,864) 34,516 63,769 $18.37

Raleigh/Durham 3,904 81,808,375 10,374,095 10,758,257 13.2% 533,741 355,975 287,948 $18.77

Reno/Sparks 996 12,845,511 2,218,621 2,315,766 18.0% (231,481) 4,253 0 $17.74

Richmond VA 2,956 58,889,080 6,680,707 7,016,767 11.9% 245,039 300,551 104,227 $16.54

Roanoke 675 9,200,725 752,023 752,023 8.2% 35,777 0 0 $13.35

Rochester 1,602 39,543,776 3,807,137 3,850,946 9.7% (84,435) 246,901 112,460 $13.38

Sacramento 4,995 102,235,320 16,718,901 17,147,786 16.8% (258,106) 356,255 219,800 $21.45

Salinas 587 6,597,130 516,270 524,409 7.9% (11,081) 0 0 $22.09

Salt Lake City 4,103 80,601,222 6,937,465 7,057,231 8.8% 1,407,515 710,647 693,110 $16.51

San Antonio 2,935 64,064,148 6,883,104 7,038,350 11.0% 288,244 489,018 544,416 $18.52

San Diego 5,315 110,676,706 15,962,927 16,890,618 15.3% 744,200 568,951 59,176 $25.99

San Francisco 3,728 160,607,315 19,625,485 21,749,492 13.5% (229,144) 135,421 526,952 $30.03

San Luis Obispo/ 728 5,506,504 287,466 294,517 5.3% 25,603 56,100 0 $17.78

Santa Barbara/St 1,410 11,393,518 424,834 572,015 5.0% 15,680 0 0 $21.17

Santa Cruz/Wats 748 7,091,366 594,319 604,509 8.5% (16,724) 0 0 $19.05

Savannah 716 6,653,393 1,038,796 1,054,838 15.9% 60,130 75,000 72,072 $16.95

Seattle/Puget So 6,889 170,838,539 20,612,449 22,286,519 13.0% 1,419,641 1,647,808 2,263,500 $25.49

Shreveport/Boss 622 9,159,058 1,242,296 1,283,579 14.0% (23,306) 8,800 7,200 $11.48

South Bay/San Jo 4,525 107,359,527 13,833,156 15,058,186 14.0% 1,518,979 621,965 397,655 $26.06

South Bend/Mish 404 5,583,253 705,141 707,003 12.7% 136,513 0 0 $13.49

Southwest Florid 2,988 30,865,550 5,071,406 5,144,363 16.7% 29,716 129,502 75,644 $16.54

Spokane 1,606 20,650,022 1,853,178 1,875,097 9.1% 106,754 22,400 35,000 $15.80

Springfield 519 6,215,329 860,580 865,907 13.9% (97,125) 9,800 27,747 $13.62

St. Louis 4,824 123,550,684 13,873,736 14,295,225 11.6% 607,752 554,930 567,726 $18.21

Stockton/Modes 1,289 15,399,608 2,436,924 2,466,287 16.0% (214,003) 0 0 $16.19

Syracuse 1,106 22,294,172 1,809,628 1,809,628 8.1% 322,678 66,150 167,366 $14.79

Tallahassee 2,209 20,903,333 1,475,809 1,511,767 7.2% 53,181 69,650 0 $16.11

Tampa/St Peters 11,511 140,373,531 18,629,131 19,279,098 13.7% 451,196 53,833 98,299 $19.44

Toledo 2,456 30,569,432 2,680,624 2,707,433 8.9% 27,633 14,155 8,000 $13.78

Tucson 2,376 23,044,232 2,775,415 2,857,652 12.4% (181,160) 106,951 235,288 $19.17

Tulsa 1,830 41,840,244 5,661,622 5,799,179 13.9% 119,862 120,031 16,532 $13.76

Utica/Rome 531 7,589,806 226,585 226,585 3.0% 30,050 0 13,381 $9.86

Visalia/Porterville 921 5,260,959 445,880 461,564 8.8% (10,078) 0 0 $14.24

Washington 9,393 450,310,136 54,191,729 59,137,547 13.1% 4,032,024 4,092,443 5,736,976 $33.93

West Michigan 5,572 75,713,379 9,256,825 9,398,408 12.4% 255,206 214,060 97,000 $12.91

Westchester/So 6,384 160,520,321 16,501,146 17,791,754 11.1% (601,449) 183,550 769,819 $26.95

Wichita 1,555 20,034,119 1,883,714 1,942,831 9.7% (56,328) 0 0 $11.95

Wilmington 1,511 11,375,451 1,066,691 1,080,933 9.5% 155,407 73,771 11,385 $15.92

Yakima 586 4,224,805 218,836 218,836 5.2% 2,700 0 0 $11.73

Youngstown/Wa 1,564 14,111,451 919,979 925,979 6.6% 60,141 160,000 0 $11.15

Totals 439,217 9,791,118,119 1,194,465,471 1,261,331,657 12.9% 10,609,316 37,310,845 45,586,190 $21.61 Source: CoStar Property®







FIGURES AT A GLANCE

Class A Market Statistics Third Quarter 2010, Grouped by CBD vs Suburban


Market # Bldgs Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates

CBD 2,520 1,064,517,925 123,177,499 137,329,046 12.9% 679,256 10,424,233 16,791,405 $31.52

Suburban 14,286 2,026,382,090 306,220,618 332,771,981 16.4% 7,436,550 17,001,864 19,839,579 $25.19

Class A Totals 16,806 3,090,900,015 429,398,117 470,101,027 15.2% 8,115,806 27,426,097 36,630,984 $26.78

Source: CoStar Property•

Class B Market Statistics Third Quarter 2010, Grouped by CBD vs Suburban



CBD 13,978 833,496,242 89,275,947 93,623,794 11.2% (2,392,658) 532,971 110,972 $22.18

Suburban 164,580 3,721,592,458 487,204,744 505,741,395 13.6% 7,199,193 9,276,203 8,844,234 $19.02

Class B Totals 178,558 4,555,088,700 576,480,691 599,365,189 13.2% 4,806,535 9,809,174 8,955,206 $19.45


Class C Market Statistics Third Quarter 2010, Grouped by CBD vs Suburban



CBD 20,895 359,342,776 32,328,078 32,921,262 9.2% (530,554) 0 0 $19.84

Suburban 222,958 1,785,786,628 156,258,585 158,944,179 8.9% (1,782,471) 75,574 0 $15.62

Class C Totals 243,853 2,145,129,404 188,586,663 191,865,441 8.9% (2,313,025) 75,574 0 $16.21


Class A&B Market Statistics Third Quarter 2010, Grouped by CBD vs Suburban



CBD 16,498 1,898,014,167 212,453,446 230,952,840 12.2% (1,713,402) 10,957,204 16,902,377 $27.52

Suburban 178,866 5,747,974,548 793,425,362 838,513,376 14.6% 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 1,069,466,216 14.0% 12,922,341 37,235,271 45,586,190 $22.53


Class A,B&C Market Statistics Third Quarter 2010, Grouped by CBD vs Suburban



CBD 37,393 2,257,356,943 244,781,524 263,874,102 11.7% (2,243,956) 10,957,204 16,902,377 $26.64

Suburban 401,824 7,533,761,176 949,683,947 997,457,555 13.2% 12,853,272 26,353,641 28,683,813 $20.51

Grand Totals 439,217 9,791,118,119 1,194,465,471 1,261,331,657 12.9% 10,609,316 37,310,845 45,586,190 $21.61



Existing Inventory


Vacancy








FIGURES AT A GLANCE

Class A Market Statistics* Third Quarter 2010

Net Quoted

Period # Blds Total RBA Direct SF Total SF Vac % Absorption # Blds Total RBA # Blds Total RBA Rates

2010 3q 13,827 2,677,538,759 380,544,338 418,623,563 15.6% 5,965,903 29 5,046,991 137 32,315,827 $27.62 2010 2q 13,798 2,672,491,768 379,236,128 419,542,475 15.7% 4,624,636 39 7,645,059 150 33,617,455 $27.68 2010 1q 13,759 2,664,846,709 374,615,315 416,522,052 15.6% (4,644,380) 48 10,634,814 161 38,159,580 $27.68 2009 4q 13,711 2,654,211,895 357,637,349 401,242,858 15.1% 4,454,484 71 12,122,083 189 46,618,467 $27.76 2009 3q 13,640 2,642,089,812 348,900,356 393,575,259 14.9% 1,681,873 94 18,855,760 241 56,706,649 $28.59 2009 2q 13,546 2,623,234,052 333,191,689 376,401,372 14.3% (5,257,022) 88 15,203,789 314 70,419,261 $29.04 2009 1q 13,458 2,608,030,263 316,157,623 355,940,561 13.6% (4,946,477) 112 13,250,236 372 81,799,188 $29.59 2008 4q 13,346 2,594,780,027 299,756,256 337,743,848 13.0% 3,048,912 153 19,525,631 442 90,200,419 $30.02 2008 3q 13,193 2,575,254,396 286,382,057 321,267,129 12.5% 3,820,068 124 15,224,340 548 103,838,225 $30.46 2008 2q 13,069 2,560,030,056 276,189,887 309,862,857 12.1% 7,137,358 140 19,652,744 617 108,314,346 $30.50 2008 1q 12,929 2,540,377,312 264,455,161 297,347,471 11.7% 5,323,720 143 16,137,594 660 115,429,402 $30.32

2007 12,788 2,525,083,116 255,879,036 287,376,995 11.4% 53,786,175 478 57,656,036 669 112,379,930 $29.69 2006 12,315 2,468,653,738 250,543,215 284,733,792 11.5% 67,985,979 359 47,005,619 608 95,238,267 $27.85 2005 11,964 2,422,638,251 266,230,017 306,704,284 12.7% 69,148,046 254 33,648,375 460 75,281,250 $26.05 2004 11,711 2,389,149,876 290,713,219 342,363,955 14.3% 65,659,600 239 35,784,829 324 58,293,051 $25.60 2003 11,477 2,354,849,360 308,368,769 373,723,039 15.9% 32,626,249 256 47,447,814 281 54,628,601 $25.32


Class B Market Statistics* Third Quarter 2010

Net Quoted


2010 3q 112,436 3,240,602,587 435,023,774 453,770,335 14.0% 2,084,079 78 1,380,080 251 5,808,262 $20.57 2010 2q 112,360 3,239,323,899 434,170,712 454,575,726 14.0% 763,200 123 2,138,015 291 6,514,888 $20.73 2010 1q 112,240 3,237,213,660 431,660,285 453,228,687 14.0% 197,487 104 2,145,726 376 7,577,543 $20.85 2009 4q 112,140 3,235,395,860 429,786,490 451,608,374 14.0% (1,718,024) 188 3,611,171 369 7,791,374 $20.93 2009 3q 111,963 3,232,095,259 424,037,939 446,589,749 13.8% (5,998,422) 250 5,250,926 491 10,403,219 $21.54 2009 2q 111,718 3,227,071,132 413,330,270 435,567,200 13.5% (7,698,786) 323 5,620,543 653 14,383,457 $21.79 2009 1q 111,402 3,221,844,730 400,702,513 422,642,012 13.1% (9,134,141) 472 8,163,337 831 17,592,397 $22.02 2008 4q 110,938 3,213,921,639 384,857,006 405,584,780 12.6% 3,554,489 475 9,037,358 1,110 22,940,625 $22.24 2008 3q 110,474 3,205,220,773 380,128,595 400,438,403 12.5% 2,310,150 705 10,664,299 1,379 28,281,216 $22.38 2008 2q 109,776 3,194,725,466 372,804,888 392,253,246 12.3% 6,102,495 565 10,813,224 1,819 34,505,543 $22.40 2008 1q 109,221 3,185,860,323 369,354,424 389,490,598 12.2% 2,011,622 1,051 15,476,314 1,955 37,231,602 $22.30

2007 108,187 3,171,520,656 357,266,939 377,162,553 11.9% 33,299,187 3,697 55,145,635 2,450 43,883,791 $22.09 2006 104,562 3,120,418,004 339,622,935 359,359,088 11.5% 59,384,391 3,507 53,973,108 3,384 55,051,222 $20.72 2005 101,105 3,070,796,353 347,450,035 369,121,828 12.0% 68,951,561 2,998 47,104,871 3,192 54,413,626 $19.93 2004 98,156 3,027,032,658 366,551,359 394,309,694 13.0% 38,026,693 2,346 35,856,622 2,566 44,659,269 $19.43 2003 95,859 2,994,934,979 362,106,373 400,238,708 13.4% 7,618,310 1,929 33,257,926 1,881 32,669,493 $19.31


Total Office Market Statistics* Third Quarter 2010

Net Quoted


2010 3q 282,250 7,396,581,221 948,182,879 1,007,410,984 13.6% 7,288,332 108 6,430,921 388 38,124,089 $23.01 2010 2q 282,150 7,390,327,688 945,068,467 1,008,445,783 13.6% 5,232,564 163 9,815,277 442 40,136,193 $23.14 2010 1q 281,995 7,380,630,620 937,925,745 1,003,981,279 13.6% (4,846,239) 152 12,780,540 539 45,773,176 $23.23 2009 4q 281,851 7,368,246,033 918,720,607 986,750,453 13.4% 1,645,164 259 15,733,254 559 54,413,691 $23.33 2009 3q 281,613 7,353,054,979 903,434,526 973,204,563 13.2% (7,285,605) 344 24,106,686 732 67,109,868 $23.95 2009 2q 281,282 7,329,277,726 874,036,257 942,141,705 12.9% (18,145,970) 411 20,824,332 967 84,802,718 $24.31 2009 1q 280,899 7,309,120,830 839,619,470 903,838,839 12.4% (18,925,609) 589 21,440,032 1,203 99,391,585 $24.71 2008 4q 280,337 7,288,181,327 802,863,346 863,973,727 11.9% 3,917,534 629 28,570,289 1,557 113,167,503 $25.01 2008 3q 279,738 7,260,278,540 782,656,346 839,988,474 11.6% 4,290,315 830 25,895,775 1,933 132,153,200 $25.32 2008 2q 278,928 7,234,715,452 763,546,256 818,715,701 11.3% 11,322,938 709 30,491,251 2,443 142,860,784 $25.40 2008 1q 278,243 7,206,337,138 746,494,201 801,660,325 11.1% 5,446,715 1,211 31,886,532 2,623 152,715,482 $25.34

2007 277,100 7,176,942,579 723,856,668 777,712,481 10.8% 87,475,987 4,312 114,340,283 3,141 156,576,324 $24.89 2006 272,966 7,069,704,718 701,295,456 757,950,607 10.7% 128,249,870 4,075 102,916,942 4,109 151,657,981 $23.40 2005 269,037 6,974,485,447 726,572,218 790,981,206 11.3% 145,314,214 3,608 83,771,637 3,840 131,768,110 $22.21 2004 265,583 6,898,199,473 777,331,466 860,009,446 12.5% 104,055,652 3,035 75,422,290 3,204 106,016,608 $21.79 2003 262,717 6,831,579,775 789,903,760 897,445,400 13.1% 40,188,218 2,592 84,063,844 2,549 90,466,072 $21.80


UC Inventory

Existing Inventory Vacancy Deliveries UC Inventory

Existing Inventory Vacancy Deliveries UC Inventory

Existing Inventory Vacancy Deliveries






Historical Rental Rates*Based on Full-Service Equivalent Rental Rates


Vacancy by Available Space Type Vacancy by ClassPercent of All Vacant Space in Direct vs. Sublet Percent of All Vacant Space by Class

Source: CoStar Property® Source: CoStar Property®

Future Space AvailableSpace Scheduled to be Available for Occupancy in the Future*

* includes Under Construction Spaces Source: CoStar Property®

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LEASING ACTIVITY






LEASING ACTIVITY


* Renewal

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

6 1411 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

8 4900-5040 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

10 3003 Perimeter Summit Atlanta 339,200 1st Auto Trader N/A CB Richard Ellis

11 2000 St James Pl Houston 335,027 3rd Weatherford International CB Richard Ellis Core Real Estate, LLC

12 1200 & 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

14 180 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.

20 500 Jefferson Bldg* Houston 291,536 1st Kellogg Brown & Root Jones Lang LaSalle Americas, Inc. Brookfield Properties Management

21 425 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.

23 12310 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

25 200 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

27 12300 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

29 777 Third Ave New York City 246,500 1st Avon Products CB Richard Ellis Jones Lang LaSalle

30 620 Avenue of the Americas New York City 243,000 2nd Service Employees International Union Newmark Knight Frank Cushman & Wakefield, Inc.

31 2821 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.

34 101 Hudson St* Northern New Jersey 232,465 3rd National Union Fire Insurance Co Cushman & Wakefield of NJ, Inc. Mack-Cali Realty Corporation

35 395 Page Mill Rd South Bay/San Jose 224,852 3rd America Online Cornish & Carey Commercial NKF CB Richard Ellis

36 425 Market St* San Francisco 220,000 2nd Morrison & Foerster LLP The CAC Group Cushman & Wakefield of California

37 175 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

Select Top Office Leases Based on Leased Square Footage For Deals Signed in 2010






Change In Vacant Square Footage Last 12 MonthsThird Quarter 2009 to Third Quarter 2010

LEASING ACTIVITY


Rank Region 2009 3q 2010 3q Diff1 Lafayette 282,822 475,073 68.0%2 Ocala 303,847 456,748 50.3%3 San Luis Obispo/Paso Robles 205,044 294,517 43.6%4 Bakersfield 694,920 938,939 35.1%5 Jackson 1,744,104 2,319,124 33.0%6 Anchorage 489,065 647,245 32.3%7 Brownsville/Harlingen 165,590 203,853 23.1%8 Olympia 729,292 866,864 18.9%9 Asheville 728,751 864,311 18.6%10 Huntsville 1,330,738 1,577,485 18.5%11 Charleston WV 597,258 707,165 18.4%12 Corpus Christi 793,646 939,616 18.4%13 Lexington/Fayette 1,655,064 1,949,738 17.8%14 Columbia 2,695,783 3,127,301 16.0%15 Charlotte 11,431,850 13,168,456 15.2%16 Albuquerque 3,700,578 4,234,629 14.4%17 Myrtle Beach/Conway 354,685 405,039 14.2%18 Tallahassee 1,334,180 1,511,767 13.3%19 Springfield 767,359 865,907 12.8%20 Duluth 312,945 352,979 12.8%21 McAllen/Edinburg/Pharr 508,508 573,434 12.8%22 Tucson 2,540,407 2,857,652 12.5%

Rank Region 2009 3q 2010 3q Diff23 Green Bay 1,183,001 1,327,890 12.2%24 Rochester 3,442,670 3,850,946 11.9%25 Davenport/Moline/Rock Island 744,285 829,996 11.5%26 New York City 39,109,032 43,579,213 11.4%27 Las Vegas 10,374,474 11,465,975 10.5%28 Louisville 5,565,166 6,125,454 10.1%29 Hampton Roads 5,273,453 5,798,373 10.0%30 Fayetteville 506,802 554,786 9.5%31 Orange (California) 21,364,095 23,290,126 9.0%32 Montgomery 1,426,405 1,554,049 8.9%33 Shreveport/Bossier City 1,178,414 1,283,579 8.9%34 Salinas 483,685 524,409 8.4%35 Boise City/Nampa 3,202,929 3,471,255 8.4%36 Stockton/Modesto 2,276,484 2,466,287 8.3%37 Visalia/Porterville 426,068 461,564 8.3%38 Atlanta 45,686,837 49,420,184 8.2%39 Youngstown/Warren/Boardman 857,391 925,979 8.0%40 Miami-Dade County 13,471,836 14,547,787 8.0%41 Westchester/So Connecticut 16,476,993 17,791,754 8.0%42 Reno/Sparks 2,147,256 2,315,766 7.8%43 Marin/Sonoma 3,953,520 4,248,995 7.5%44 Augusta/Richmond County 941,500 1,011,070 7.4%

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SALES ACTIVITY

The Optimist Sales Index Average of Two Highest Price/SF's and Two Lowest Cap Rates From Each Region

Source: CoStar COMPS®

Sales Volume & Price Sales Analysis by Building SizeBased on Office Building Sales of 15,000 SF and Larger Based on Office Building Sales From July 2009 - June 2010

Bldg Size # RBA $ Volume Price/SF Cap Rate

< 50,000 SF 3,888 38,583,183 5,720,794,934$ 148.27$ 7.95%

50K-249K SF 462 50,368,305 7,311,367,484$ 145.16$ 5.94%

250K-499K SF 62 21,781,818 4,093,935,496$ 187.95$ 2.31%

>500K SF 31 25,808,196 5,800,587,533$ 224.76$ 4.11%

Source: CoStar COMPS® Source: CoStar COMPS®

Historical Price/SF Average Historical Cap Rate AverageBased on Office Building Sales of 15,000 SF and Larger Based on Office Building Sales of 15,000 SF and Larger

Source: CoStar COMPS® Source: CoStar COMPS®

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Documents

CoStar Office Report - · PDF fileNational Office Market B THE COSTAR OFFICE REPORT ©2010 COSTAR GROUP, ... Denver, Detroit, East Bay/Oakland, Houston ... B THE COSTAR OFFICE REPORT