Sam Chandan gives a presentation of the State of the Office Market at GreenPearl Events Office Summit - June 10, 2010

1. The State of the Office Market GreenPearl Office Summit | New York | June 2010 Sam Chandan PhD FRICS Global Chief Economist and Executive Vice President Real Capital Analytics Adjunct Professor of Real Estate The Wharton School of the University of Pennsylvania

3. Office Sector Fundamentals

4. Construction Activity

5. Office Investment and Credit Trends

6. Policy, Regulation, and Real Estate 2

7. Employment Losses Moderate 3 Year-to-Year Percent Change in Nonfarm Employment Source: Bureau of Labor Statistics

8. Office Fundamentals Trends 4 Sources: Mortgage Bankers Association Quarterly Data Book Vacancy Rate Asking Rent Change

9. Office Construction and New Inventory 5 Year-to-Year Change in Private Office Construction Spending Source: Census Bureau

10. Economic Headwinds and Tailwinds Contributions to Percent Change in Real GDP First Quarter 2010 (Advance Estimate) Source: Bureau of Economic Analysis 6

11. Office Sector Investment Trends 7 Office Transaction Volume and Average Office Cap Rate Source: Real Capital Analytics Average Cap Rate

12. Office Sector Investment Trends 8 Office Transaction Volume, Prices, and Cap Rates Through April 2010 Source: Real Capital Analytics

13. Where the Stress Falls 9 Percentage of Transaction Volume Related to Distress Source: Real Capital Analytics

14. Asset Prices, Credit, and Policy Guidance 10 Moody's / REAL Commercial Property Price Index by Sector Source: Real Capital Analytics, REAL 2000 Q4 = 1 Final Concentration Guidance Released For Comment Concentration Guidance Released CMBS TALF Loan Workout Guidance Released

15. Emerging Sources of Credit 11

16. The State of the Office Market GreenPearl Office Summit | New York | June 2010 Sam Chandan PhD FRICS Global Chief Economist and Executive Vice President Real Capital Analytics Adjunct Professor of Real Estate The Wharton School of the University of Pennsylvania