ct national report 2q10

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2nd Quarter 2010

National OceTrends Report



2 | Cassidy Turley

Contents

U.S. Ofce Sector Analysis .......................................................................3-5

Investment Sales ........................................................................................6

Net Absorption by Metro ..........................................................................7-8

Vacancy Rates by Metro .........................................................................9-10

Asking Rents by Metro ........................................................................11-12

Inventory by Metro ..............................................................................13-14

Methodology ............................................................................................15

*Updated July 12, 2010

Kevin ThorpeChie Economist

2101 L Street, NW, Ste. 700

Washington, DC 20037

[email protected]



cassidyturley.com | 3

• For the rst time in 2 years, the demand or oce space exceeded what was returned to

the market. Net absorption was +6.5 million square eet in the second quarter o 2010,

the rst period o positive demand since the rst quarter o 2008.

• The U.S. economy created 95,000 oce-using jobs in the second quarter o2010. Assuming 200 square eet per worker, the math suggests the market should

have absorbed 19.0 million square eet or the quarter. The discrepancy between

actual absorption and estimated absorption based on job growth is largely due to a

phenomenon called shadow space (i.e. businesses are simply lling up existing space

that they weren’t using during the recession).

• For the most part, demand kept pace with new supply, and as a result, national oce

vacancy remained fat compared to the previous quarter at 16.9%. Still, this is the

highest vacancy has been since 1993. O the 80 major metros tracked, 42 posted

increases in vacancy, 33 markets posted declines, and 5 markets posted no change.

• National rents are stabilizing, but not appreciating. Average asking rents ell $0.17

rom the rst to the second quarter o 2010 to $21.56. Eective rents, which strip outTIs and ree rent, remained fat at $17.65.

• The development pipeline has slowed dramatically. There is currently 32.8 million

square eet under construction, compared to 49 million square eet that delivered in

2009, and 61.1 million square eet that delivered in 2008.

• Investment sales have recently taken on a brighter hue. From Jan-May o 2010, U.S.

oce sales volume was $7.42 billion, up 39% compared to this same period one

year-ago. Cap rates continue to compress, and are down over 100 basis points rom

their peak in December o 2009. Demand remains robust or core product in top tier

markets such as New York, Washington DC, San Francisco, and Boston. Pricing in

these markets has moved up dramatically since hitting a low point in 2009. Sales o

value-add properties are ew and ar between and the challenge o price discovery or

these assets continues.

U.S. Oce Sector Analysis

U.S. Absorption vs. Vacancy U.S. Ofce-using Employment

Source: BLS Source: Cassidy Turley Research

Market Indicators2nd Quarter 2010

Net Absorption +6.5 M

Asking Rents $21.56

Vacancy

UnderConstruction

16.9%

32.8 M

2010

Q2

12-month

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Absorption Vacancy

Kevin Thorpe, Chie Economist

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Office-using

Market Overview



4 | Cassidy Turley

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Asking Rents

Selected Metros, 2nd Quarter 2010

Rents%

Change

(y/y)

New York, NY $50.19 -4.9%

Washington DC $48.39 2.1%

San Mateo County, CA $31.32 -6.5%

San Jose, CA $31.20 -8.8%

San Francisco, CA $30.82 -16.2%

Suburban VA $29.64 -0.3%

Los Angeles, CA $29.51 -6.1%

Fairfeld, CT $29.18 -8.3%

Miami, FL $28.78 -2.7%

Boston, MA $28.27 -8.3%

San Diego, CA $27.96 -6.8%

West Palm Beach, FL $27.89 -2.3%

Seattle, WA $27.27 -5.4%

Suburban MD $26.52 -3.5%

Long Island, NY $26.41 -0.4%

Westchester, NY $25.71 -10.9%

Northern New Jersey $25.36 -4.9%

Ft. Lauderdale, FL $24.98 -1.9%

Austin, TX $24.87 -1.6%

Chicago, IL $24.70 -2.7%

Oakland-East Bay, CA $24.58 -2.9%

Source: Cassidy Turley Research

• As expected, the U.S. economy has experienced some recent setbacks as it transitions

rom a stimulus-led recovery to a sel-sustaining expansion. Private sector job growth in

particular has been disappointing, creating a meager 98,000 jobs per month rom Jan-

June 2010, well below the 125,000 jobs needed to keep the unemployment rate stable.

Even under bullish economic scenarios, unemployment will not reach pre-recession

levels prior to 2013.

• History suggests a double dip scenario is highly unlikely. Post WWII business cycles

consistently show that recovery periods are bumpy and uneven, and are oten raught

with setbacks. However, rarely do these setbacks result in a double dip recession.

There has only been one double dip recession since 1938 (the double dip o 1980

& 1982). More oten than not (9 out o the last 10 business cycles) recessions are

ollowed by a 5-7 year period o economic expansion.

• Uncertainty related to government policy is inhibiting job growth. Lack o clarity

regarding the regulatory environment (healthcare reorm, nancial regulatory reorm,

taxes, and energy policy) has slowed the statistical relationship between rising corporate

prots (which are up 34% compared to a year-ago) and job creation. Corporate

prots typically lead job creation by 6 to 9 months – but this relationship is trackingmuch slower in the current recovery. This, in combination with jitters surrounding the

European debt crisis, has the majority o business leaders delaying aggressive hiring.

• The growing uncertainty will slow the recovery in the oce sector, but will not derail

it. U.S. real GDP will grow 3.1% in 2010, and the growth rate will be similar in 2011.

Oce-using job growth will continue to be slow in 2010, but as businesses regain

condence in the sel-sustaining expansion, hiring will pick up in greater numbers in

2011 in order to keep pace with growing demand. For the oce market, 2010 will

be the year o positive demand or oce space, 2011 will be the year o stabilizing

vacancy, and 2012 will be the year o rental appreciation.

U.S. Oce Sector AnalysisMarket Outlook

Double Dip Recessions Are Rare

Real GDP, % Change Annualized

Just 1 double dip

recession since

post WWII

Source: U.S. Census Bureau




DC Metro & New York City Stand Tall

YTD 2010 Net Absorption

Absorption as % o Inventory

Q2 2010

Source: Cassidy Turley Research Source: Cassidy Turley Research

Regional SummaryThe South region led all regional markets,

recording +4.9 million square eet o

absorption. The Washington DC Metro

led the way with +1.7 million square

eet o positive demand. The gain was

largely due to several new deliveries thatwere pre-leased - mostly to the Federal

Government - rom deals signed prior to

the second quarter o 2010. However,

strong job creation in the DC metro also

helped the region absorb 316,000 square

eet o sublease space. O the 32 markets

tracked in the South, 19 registered positive

absorption. Vacancy in the South region

declined 10 basis points when compared

to the previous quarter to 16.3%. Asking

rates in the south remained fat at $20.81

in the second quarter o 2010.

The West region also recorded a signicant

improvement in demand in the second

quarter o 2010. Net absorption registered

+1.18 million square eet, marking the rst

period o positive absorption since the third

quarter o 2007. San Jose led the region

with +987,000 square eet o absorption,

ollowed by Denver-Aurora with +833,000

square eet. Vacancy in the West remained

fat at 17.3% in the second quarter o 2010

compared to the previous quarter, while

asking rents inched down rom $23.59 to

$23.52 over the same period.

In the Midwest region, net absorption

registered +365,800 square eet in the

second quarter o 2010, a signicant

turnaround rom the -2.3 million square

eet recorded in the previous quarter.

However, the bulk o this improvement

was concentrated in one metro area—

Chicago, which posted +1.2 million

square eet. Other than Chicago, only

3 metros in the Midwest posted positive

gains (Minneapolis, Omaha, and Tulsa).

Vacancy in the Midwest rose 20 basispoints rom the previous quarter to 18.9%.

Asking rents ell slightly rom $18.82 to

$18.54 over the same period.

The Northeast region registered +55,000

square eet o absorption in the second

quarter o 2010. New York City led the

country with +2.2 million square eet o net

demand. For the year, New York City has

absorbed 4.7 million square eet, which is

not ar o the absorption levels recorded

during the boom period o 2004 to 2006.

Other markets that recorded positive

demand included New Haven, Portland,Rochester, and Syracuse. Vacancy in the

Northeast region increased 10 basis point

rom the previous quarter to 15.5%, and

asking rents ell rom $23.48 to $23.31

over the same period.

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S a l t L a k e C i t y

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S a n M a t e o

D e n v e r

W a s h i n g t o n D C

N e w Y o r k , N Y

S u b u r b a n V A

P h o e n i x

S u b u r b a n M D

S a n D i e g o

S a n F r a n c i s c o

C i n c i n n a t i

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I n d i a n a p o l i s

L a s V e g a s

W i c h i t a

U.S. Oce Sector Analysis

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M i l l i o n s S q u a r e F e e t



6 | Cassidy Turley

Oce sales have experienced a marked

increase in activity, but the market

remains biurcated between core product

and value-add and top tier markets vs.

secondary/tertiary markets. Sales activity

in May represented the highest volume o

closed sales so ar in 2010. In all, dollarvolume registered $1.9 billion in May, an

increase o 124% rom April. Moreover, the

momentum is expected to continue as piles

o cash begin to move o o the sidelines.

According to the Federal Reserve, in March

nonnancial companies had $1.84 trillion o

cash on reserve and commercial banks had

over $1 trillion in excess reserves. Thus ar,

the prime target or investors has been core

product in top tier markets. For the rst

hal o 2010, sales o signicant properties

in Manhattan, Washington, DC, Boston,

San Francisco, and Southern Caliornia

accounted or over 70% o total oce

sales volume in the U.S. Pricing has been

pushed up rapidly as numerous investors

chase quality assets in these markets. A ew

examples o high-end purchases include:

1350 Eye St. NW in Washington DC, which

sold or $549 ps; Two Constitution Square

in Washington DC which sold or $518 ps;

Manhattan Tower, New York, NY, which sold

or $636 ps; Six Times Square in New York,

NY which sold or $604 ps; and Lexington

Technology Park in Lexington MA, which

sold or $460 ps. Overall, transaction

prices on all signicant oce properties

rose 17.2% rom April to May -- to $188

ps. Owners are sensing a window o price

improvement, and as a result, they are

bringing a growing number o assets to the

market. Through May o 2010, buildings

on the market were up 29% compared to

a year-ago. Despite the general positive

trend in investment sales, there is a clear

lack o value-add properties selling. O the247 oce transactions that have closed in

2010, less than 10% all into the value-add

category.

The issue o distressed assets is not going

away; in act, the problem has become

more pronounced in the last two months.

According to Real Capital Analytics, there

were an additional $9.3 billion listed as

distressed assets in May, up rom $5 billion

listed in April. However, more than hal

o the increase in May was related to the

transer o $4.9 billion in assets to specialservicing rom one hety portolio. As o

June 2010, the loan status o that portolio

was reported as “current”. Although the

levels o deaults and oreclosures continue

to rise, the severity o the problem varies

greatly by local market. In the majority

o the largest metros, distressed assets

represent less than 5% o total inventory.

Moreover, in most markets, the distressed

assets are concentrated in the suburbs,

which are viewed as a separate product

relative to CBD properties; thus, the impact

on overall pricing has been negligible.The chart below shows distressed assets

as a percentage o inventory or selected

metropolitan areas.

Investment Sales

Source: Real Capital Analytics, Cassidy Turley Research


Ofce Sales by Metro

January - May 2010

$ Volume(Millions)

AvgPPU

CapRate

Manhattan, NY $1,022.2 $312 6.1%

Boston, MA $651.0 $230 7.7%

Houston, TX $499.8 $181 10.4%

Northern NJ $388.3 $152 N/A

Washington, DC $336.4 $458 6.2%

San Francisco, CA $313.1 $284 5.6%

Suburban VA $253.4 $238 7.6%

Orange County, CA $249.3 $278 8.1%

San Jose, CA $223.1 $187 N/A

Chicago, IL $216.0 $98 10.1%

Los Angeles, CA $193.8 $206 8.3%

Suburban MD $175.9 $193 N/A

Denver, CO $174.4 $201 7.8%

Tampa, FL $157.2 $131 9.4%

Seattle, WA $153.5 $249 9.0%

Dallas, TX $131.0 $79 7.4%

San Diego, CA $124.5 $214 N/A

St Louis, MO $96.1 $69 N/A

Portland, OR $94.4 $179 9.2%

Charlotte, NC $63.9 $32 N/A

U.S. Ofce Sales Volume


Distressed Property

As a % o Total Inventory, May 2010

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D a y t o n

S e a t t l e

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M i a m i

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A t l a n t a

C o l u m b u s

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C h a r l o t t e

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I n d i a n a p o l i s

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A u s t i n

D C

C h i c a g o

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D C V A b u r b s

G r e e n s b o r o

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B i l l i o n s

closed




2007 2008 2009 2009 Q2 2009 Q3 2009 Q4 2010 Q1r 2010 Q2p

United States 53,320,000 -22,116,000 -62,586,000 -19,094,000 -14,224,000 -6,961,000 -3,720,000 6,502,000

Northeast 5,144,000 -15,407,000 -17,494,000 -6,599,000 -3,481,000 -362,000 1,571,000 55,000

Midwest 11,357,000 -588,000 -9,224,000 -1,674,000 -1,505,000 -3,235,000 -2,305,000 357,000

South 24,105,000 6,542,000 -13,721,000 -3,914,000 -3,825,000 -1,010,000 -1,481,000 4,909,000

West 12,714,000 -12,663,000 -22,147,000 -6,907,000 -5,413,000 -2,354,000 -1,505,000 1,181,000

Albuquerque, NM 137,000 12,000 -396,000 82,000 -178,000 -159,000 115,000 -156,000

Anaheim-Santa Ana, CA 349,000 -2,621,000 -3,949,000 -1,223,000 -731,000 -1,106,000 -23,000 -316,000

Atlanta-Sandy Springs-Marietta, GA 3,751,000 174,000 -1,740,000 -347,000 -636,000 -217,000 -157,000 -121,000

Austin-Round Rock, TX 1,157,000 938,000 -131,000 60,000 133,000 -154,000 -137,000 623,000

Baltimore, MD 781,000 448,000 62,000 208,000 -126,000 682,000 -989,000 -28,000

Birmingham-Hoover, AL 429,000 449,000 -617,000 -112,000 -134,000 -269,000 -92,000 71,000

Boston-Cambridge, MA 2,115,000 293,000 -1,232,000 30,000 -267,000 -88,000 -316,000 -600,000

Bualo-Niagara Falls, NY 605,000 103,000 -130,000 5,000 -54,000 -67,000 -66,000 -8,000

Charleston-North Charleston, SC -51,000 172,000 -275,000 -129,000 -32,000 21,000 -20,000 161,000

Charlotte-Gastonia-Concord, NC-SC* 796,000 533,000 220,000 -112,000 -384,000 577,000 698,000 721,000

Chattanooga, TN-GA -120,000 15,000 -33,000 -12,000 -68,000 9,000 -109,000 44,000Chicago-Napervi lle-Joliet , IL 3,952,000 332,000 -3,223,000 -716,000 -373,000 -958,000 -1,026,000 1,175,000

Cincinnati-Middletown, OH-KY-IN 972,000 328,000 29,000 52,000 60,000 33,000 -183,000 -122,000

Cleveland-Elyria-Mentor, OH 572,000 -254,000 -438,000 -86,000 -59,000 -266,000 -62,000 114,000

Colorado Springs, CO 91,000 -340,000 -244,000 -38,000 -62,000 -155,000 210,000 102,000

Columbia, SC 61,000 124,000 -75,000 -34,000 -69,000 -42,000 -54,000 -103,000

Columbus, OH 723,000 678,000 -641,000 -159,000 -111,000 -345,000 -186,000 -80,000

Dallas-Fort Worth, TX 2,286,000 -240,000 -1,084,000 -480,000 -309,000 -223,000 -377,000 1,094,000

Dayton, OH -293,000 -195,000 -825,000 -312,000 - 55,000 -355,000 -184,000 -46,000

Denver-Aurora, CO 1,104,000 84,000 -2,075,000 -928,000 -554,000 -189,000 121,000 833,000

Detroit -Warren-Livonia, MI -384,000 -2,750,000 -1,534,000 -180,000 -388,000 -287,000 -368,000 -116,000

Fairfeld, CT 114,000 -771,000 -2,305,000 -497,000 -948,000 -180,000 -105,000 -714,000

Ft. Lauderdale, FL -255,000 -168,000 -947,000 -209,000 -273,000 -136,000 -63,000 -19,000Greensboro-Winston-Salem, NC 53,000 293,000 84,000 5,000 16,000 -62,000 -17,000 131,000

Greenville, SC 63,000 181,000 -367,000 -20,000 -92,000 -194,000 1 3,000 -27,000

Hartord, CT -56,000 -376,000 -412,000 -113,000 -33,000 -199,000 73,000 -122,000

Honolulu, HI -358,000 -183,000 261,000 183,000 -12,000 1 01,000 -5,000 139,000

Houston-Baytown-Sugar Land, TX 5,288,000 1,263,000 -481,000 -330,000 -99,000 -331,000 -200,000 -94,000

Indianapolis, IN 1,087,000 246,000 -652,000 -170,000 -283,000 -16,000 -28,000 -276,000

Jacksonville, FL 357,000 -257,000 -585,000 -237,000 -205,000 24,000 -143,000 171,000

Kansas City, MO-KS 1,482,000 318,000 -530,000 -68,000 -14,000 -197,000 -126,000 -15,000

Knoxville, TN 189,000 164,000 -204,000 -51,000 -68,000 -7,000 -16,000 234,000

Las Vegas-Paradise, NV 1,198,000 -66,000 -941,000 -191,000 -285,000 -289,000 -80,000 -237,000

Lexington-Fayette, KY 79,000 -144,000 15,000 50,000 43,000 -16,000 -27,000 -49,000

Little Rock-N. Little Rock, AR 100,000 -101,000 -142,000 -73,000 -62,000 -59,000 -15,000 -36,000Los Angeles-Long Beach-Glendale, CA 1,123,000 -3,362,000 -4,514,000 -1,172,000 -1,453,000 -602,000 -1,235,000 -538,000

Louisville, KY-IN 287,000 -21,000 -364,000 -168,000 -98,000 19,000 -184,000 -155,000

Madison, WI 145,000 153,000 44,000 6,000 13,000 48,000 -1,000 -231,000

Memphis, TN-MS-AR 153,000 -58,000 -289,000 -136,000 -1,000 16,000 -193,000 143,000

Miami-Dade, FL -49,000 -535,000 -796,000 -349,000 -144,000 -2,000 -78,000 282,000

Milwaukee-Waukesha-West Allis, WI 405,000 147,000 90,000 54,000 67,000 5,000 -60,000 -117,000

Minneapolis-St. Paul , MN-WI 887,000 -631,000 -1,799,000 -335,000 -42,000 -844,000 -164,000 49,000

Nashville-Davidson-Murreesboro, TN 1,199,000 1,151,000 -83,000 -205,000 169,000 177,000 6,000 535,000

New Haven-Milord, CT 226,000 -261,000 -1,488,000 -330,000 -517,000 -352,000 6,000 144,000

Net Absorption



8 | Cassidy Turley

Net Absorption

2007 2008 2009 2009 Q2 2009 Q3 2009 Q4 2010 Q1r 2010 Q2p

New Orleans-Metairie-Kenner, LA -208,000 -608,000 312,000 125,000 5,000 38,000 -89,000 -112,000

New York, NY 1,846,000 -13,792,000 -10,871,000 -4,267,000 -771,000 -588,000 2,491,000 2,172,000

Long Island, NY -123,000 694,000 733,000 -108,000 -63,000 612,000 -204,000 -209,000

Northern New Jersey 105,000 -1,363,000 -71,000 -583,000 -568,000 562,000 334,000 175,000

Central New Jersey -3,057,000 -804,000 -612,000 -700,000 -145,000 181,000 25,000 -142,000Oakland-East Bay, CA 481,000 -2,480,000 -1,210,000 -458,000 -431,000 59,000 -75,000 -64,000

Oklahoma City, OK 575,000 -189,000 126,000 78,000 40,000 -65,000 -65,000 -112,000

Omaha, NE-IA 152,000 -147,000 -154,000 41,000 -72,000 -64,000 36,000 141,000

Orlando, FL 286,000 -235,000 -1,242,000 -272,000 -331,000 -111,000 -137,000 63,000

West Palm Beach-Boca Raton, FL -194,000 381,000 -810,000 -134,000 -196,000 -236,000 -57,000 -89,000

Philadelphia-Camden, PA-NJ 2,000,000 -160,000 -1,160,000 -311,000 -237,000 -518,000 -432,000 -245,000

Phoenix-Mesa-Scottsdale, AZ 1,698,000 -1,072,000 -610,000 168,000 -148,000 -136,000 -66,000 183,000

Pittsburgh, PA 1,191,000 783,000 322,000 63,000 270,000 199,000 89,000 -119,000

Portland, ME -31,000 194,000 8,000 12,000 -82,000 40,000 -55,000 35,000

Portland-Beaverton, OR-WA 70,000 -655,000 -1,158,000 -388,000 -193,000 -145,000 -214,000 -133,000

Raleigh-Durham, NC 1,363,000 1,912,000 -142,000 -489,000 65,000 322,000 -185,000 211,000

Rochester, NY 69,000 -44,000 -87,000 -22,000 12,000 -71,000 -87,000 87,000Sacramento, CA 676,000 1,390,000 -105,000 -517,000 209,000 225,000 -84,000 -678,000

Saint Louis, MO-IL 1,496,000 702,000 -137,000 -13,000 -177,000 -175,000 19,000 -7,000

Salt Lake City, UT 355,000 -1,000 -559,000 -283,000 -108,000 -30,000 26,000 503,000

San Antonio, TX 1,047,000 476,000 303,000 355,000 15,000 51,000 -99,000 180,000

San Diego-San Marcos, CA 756,000 -789,000 -476,000 -404,000 -220,000 464,000 485,000 -193,000

San Francisco, CA 740,000 -1,306,000 -1,900,000 -635,000 -248,000 -170,000 -70,000 -254,000

San Jose-Sunnyvale-Santa Clara, CA 1,653,000 -1,623,000 -1,322,000 -176,000 -71,000 -77,000 -155,000 988,000

San Mateo County, CA 867,000 -868,000 -640,000 -577,000 59,000 191,000 -52,000 310,000

Seatt le-Tacoma-Bellevue, WA 1,555,000 1,223,000 -1,797,000 -304,000 -862,000 -244,000 -419,000 717,000

Suburban MD 732,000 -942,000 -686,000 148,000 -139,000 -271,000 -82,000 138,000

Suburban VA 1,970,000 1,279,000 -1,713,000 -665,000 -267,000 -109,000 415,000 607,000

Syracuse, NY 47,000 44,000 -120,000 -5,000 -101,000 -1,000 79,000 -14,000

Tampa-St.Petersburg-Clearwater, FL 698,000 -1,218,000 -2,080,000 -122,000 -594,000 -539,000 -38,000 58,000

Tucson, AZ 161,000 187,000 -354,000 -46,000 -55,000 -159,000 -15,000 -43,000

Tulsa, OK -209,000 550,000 -73,000 -25,000 -68,000 13,000 81,000 150,000

Ventura County, CA 57,000 -195,000 -157,000 -1,000 -70,000 69,000 28,000 18,000

Washington, DC 1,489,000 755,000 116,000 -231,000 88,000 85,000 928,000 960,000

Wichita, KS 160,000 487,000 547,000 213,000 -73,000 187,000 28,000 -113,000

Westchester, NY 95,000 53,000 -69,000 227,000 21,000 106,000 -261,000 -387,000

Methodology explained on page 15

p = preliminary

r = revision

*Unconfrmed absorption; not included in U.S. and Regional totals




2007 2008 2009 2009 Q2 2009 Q3 2009 Q4 2010 Q1r 2010 Q2p

(Quarterly Average)

United States 13.0% 13.9% 16.0% 15.8% 16.3% 16.6% 16.9% 16.9%

Northeast 13.0% 13.4% 14.8% 14.6% 15.0% 15.0% 15.4% 15.5%

Midwest 15.4% 16.0% 17.8% 17.5% 18.1% 18.6% 18.7% 18.9%

South 12.6% 13.4% 15.4% 15.2% 15.7% 16.0% 16.4% 16.3%West 11.8% 13.6% 16.5% 16.4% 16.9% 17.2% 17.3% 17.3%

Albuquerque, NM 10.9% 11.5% 13.5% 13.0% 13.7% 14.3% 14.1% 14.7%

Anaheim-Santa Ana, CA 8.7% 12.5% 16.9% 16.6% 17.2% 18.4% 18.2% 19.5%

Atlanta-Sandy Springs-Marietta, GA 14.9% 15.5% 17.5% 17.0% 18.2% 18.0% 18.5% 18.6%

Austin-Round Rock, TX 13.1% 15.9% 18.9% 19.0% 19.0% 19.2% 19.1% 18.3%

Baltimore, MD 16.4% 17.3% 18.8% 18.6% 19.5% 18.7% 20.3% 19.4%

Birmingham-Hoover, AL 11.4% 9.7% 10.6% 10.1% 10.5% 11.7% 12.3% 12.2%

Boston-Cambridge, MA 11.3% 11.3% 13.2% 13.2% 13.2% 13.3% 13.9% 13.8%

Bualo-Niagara Falls, NY 12.9% 12.1% 12.6% 12.2% 12.8% 12.9% N/A 13.5%

Charleston-North Charleston, SC 11.2% 13.8% 16.0% 16.4% 16.3% 15.6% 15.6% 14.5%

Charlotte-Gastonia-Concord, NC-SC 11.6% 11.5% 13.8% 13.3% 14.2% 14.9% 14.8% 14.6%Chattanooga, TN-GA 10.8% 13.4% 15.3% 14.5% 16.0% 16.6% 18.4% 17.9%

Chicago-Naperville-Joliet, IL 15.6% 15.3% 17.0% 16.8% 17.4% 17.6% 17.7% 17.6%

Cincinnati-Middletown, OH-KY-IN 18.6% 18.9% 19.5% 19.4% 19.3% 20.2% 21.0% 21.3%

Cleveland-Elyria-Mentor, OH 16.7% 17.2% 17.7% 17.4% 17.7% 18.4% 18.6% 18.5%

Colorado Springs, CO 15.1% 16.9% 18.9% 18.6% 18.9% 19.5% 17.8% 17.4%

Columbia, SC 14.5% 14.1% 14.5% 14.0% 14.4% 15.8% 16.3% 16.7%

Columbus, OH 14.7% 14.6% 16.1% 15.6% 16.3% 17.5% 18.0% 18.2%

Dallas-Fort Worth, TX 16.0% 16.9% 19.3% 19.2% 19.7% 19.7% 20.4% 20.2%

Dayton, OH 20.2% 21.0% 25.5% 24.4% 26.8% 27.7% 28.1% 27.2%

Denver-Aurora, CO 15.0% 14.9% 18.1% 17.9% 18.6% 19.1% 19.0% 18.5%

Detroit-Warren-Livonia, MI 20.2% 21.9% 24.1% 23.9% 24.2% 24.4% 24.9% 24.9%

Fairfeld, CT 13.8% 15.3% 19.1% 18.5% 20.1% 19.1% 20.4% 21.5%Ft. Lauderdale, FL 9.4% 12.5% 16.6% 15.9% 17.3% 17.9% 18.2% 17.8%

Greensboro-Winston-Salem, NC 17.8% 18.5% 18.4% 18.5% 18.2% 18.5% 18.5% 18.9%

Greenville, SC 18.6% 17.3% 18.2% 17.7% 18.2% 19.3% 18.7% 19.2%

Hartord, CT 15.6% 16.9% 19.3% 18.9% 19.3% 20.6% 21.0% 21.4%

Honolulu, HI 6.3% 6.3% 7.3% 6.8% 7.4% 7.1% 6.9% 7.2%

Houston-Baytown-Sugar Land, TX 11.9% 12.0% 14.1% 13.9% 14.5% 14.9% 15.1% 15.1%

Indianapolis, IN 18.1% 18.2% 19.9% 19.5% 20.3% 20.7% 20.7% 21.8%

Jacksonville, FL 14.3% 15.9% 19.0% 18.9% 19.7% 19.6% 19.9% 19.7%

Kansas City, MO-KS 16.6% 16.7% 19.4% 19.0% 19.9% 20.3% 20.6% 20.7%

Knoxville, TN 15.1% 12.9% 15.5% 15.4% 16.3% 16.7% 16.7% 16.8%

Las Vegas-Paradise, NV 11.9% 16.6% 21.4% 20.9% 22.3% 23.0% 23.4% 23.7%

Lexington-Fayette, KY 12.7% 16.1% 16.5% 16.3% 15.9% 16.1% 16.3% 16.8%Little Rock-N. Little Rock, AR 9.3% 9.6% 11.1% 10.8% 11.4% 11.9% 12.2% 12.3%

Los Angeles-Long Beach-Glendale, CA 8.7% 9.7% 12.2% 12.1% 12.7% 12.8% 13.3% 13.5%

Louisville, KY-IN 13.4% 12.8% 13.8% 13.8% 14.2% 13.9% 14.7% 14.7%

Madison, WI 7.2% 8.3% 8.7% 8.8% 8.7% 8.6% 8.6% 9.7%

Memphis, TN-MS-AR 16.1% 15.7% 18.2% 18.2% 18.3% 18.7% 19.3% 18.9%

Miami-Dade, FL 8.2% 10.4% 13.8% 13.8% 14.3% 14.6% 15.2% 15.5%

Milwaukee-Waukesha-West Allis, WI 13.0% 14.3% 16.3% 15.9% 16.7% 16.9% 17.0% 16.9%

Minneapolis-St. Paul, MN-WI 16.1% 17.5% 19.5% 19.3% 19.8% 20.2% 20.4% 20.4%

Nashville-Davidson-Murreesboro, TN 10.3% 10.8% 14.0% 14.4% 14.1% 14.6% 15.9% 14.7%

Oce Vacancy Rates



10 | Cassidy Turley

Oce Vacancy Rates

2007 2008 2009 2009 Q2 2009 Q3 2009 Q4 2010 Q1r 2010 Q2p

(Quarterly Average)

New Haven-Milord, CT 14.5% 14.2% 16.3% 15.7% 17.0% 17.1% 16.8% 16.9%

New Orleans-Metairie-Kenner, LA 5.1% 7.2% 8.5% 8.5% 8.5% 8.2% 8.5% 9.1%

New York, NY 7.1% 9.0% 13.0% 13.1% 13.4% 13.5% 13.5% 12.8%

Long Island, NY 12.4% 14.2% 16.4% 16.1% 17.0% 16.5% 16.6% 16.8%Northern New Jersey 12.2% 12.9% 13.1% 13.1% 13.5% 13.1% 13.2% 13.2%

Central New Jersey 14.2% 15.6% 16.6% 16.7% 16.8% 16.6% 16.4% 16.5%

Oakland-East Bay, CA 15.3% 15.2% 16.7% 16.8% 17.0% 17.0% 18.0% 18.0%

Oklahoma City, OK 15.0% 14.8% 15.7% 15.4% 15.4% 16.3% 16.6% 17.0%

Omaha, NE-IA 13.3% 12.7% 14.8% 14.8% 15.5% 15.7% 15.7% 15.6%

Orlando, FL 9.9% 11.5% 15.3% 14.8% 15.8% 16.2% 16.4% 16.9%

West Palm Beach-Boca Raton, FL 10.9% 14.1% 17.6% 17.1% 18.0% 18.7% 18.9% 19.0%

Philadelphia-Camden, PA-NJ 11.3% 11.8% 12.9% 12.9% 13.1% 13.5% 13.9% 14.0%

Phoenix-Mesa-Scottsdale, AZ 14.8% 20.9% 25.8% 25.7% 26.3% 26.6% 27.3% 27.6%

Pittsburgh, PA 16.9% 15.4% 15.4% 15.5% 15.5% 15.2% 15.3% 15.7%

Portland, ME 9.3% 8.0% 8.1% 7.7% 8.7% 8.2% 9.2% 9.0%

Portland-Beaverton, OR-WA 11.2% 11.0% 13.3% 13.3% 13.8% 13.9% 14.4% 14.5%Raleigh-Durham, NC 16.8% 16.1% 18.1% 18.5% 18.7% 18.7% 19.2% 19.7%

Rochester, NY 16.3% 15.6% 15.8% 15.8% 15.6% 15.8% 15.9% 16.1%

Sacramento, CA 12.7% 14.2% 15.8% 16.1% 16.3% 16.1% 16.3% 16.5%

Saint Louis, MO-IL 12.1% 12.1% 12.7% 12.3% 12.8% 13.6% 13.5% 13.5%

Salt Lake City, UT 10.9% 11.8% 14.4% 14.3% 14.5% 15.7% 15.6% 14.5%

San Antonio, TX 13.3% 13.6% 16.6% 16.7% 16.8% 17.0% 17.5% 17.0%

San Diego-San Marcos, CA 14.6% 18.2% 21.1% 21.0% 21.6% 21.1% 20.4% 20.3%

San Francisco, CA 10.4% 11.8% 15.0% 15.0% 15.3% 15.6% 15.7% 16.0%

San Jose-Sunnyvale-Santa Clara, CA 10.3% 13.8% 18.6% 18.6% 18.7% 18.9% 19.1% 18.4%

San Mateo County, CA 13.0% 14.3% 18.2% 18.9% 18.7% 18.1% 18.3% 17.1%

Seattle-Tacoma-Bellevue, WA 8.7% 9.6% 14.2% 13.6% 15.3% 16.4% 17.2% 17.0%

Suburban MD 10.5% 12.5% 14.5% 14.0% 14.9% 15.2% 15.4% 15.2%Suburban VA 10.4% 12.0% 14.0% 13.7% 14.3% 14.8% 14.7% 14.3%

Syracuse, NY 10.2% 11.9% 13.0% 12.8% 13.1% 13.2% 12.6% 13.0%

Tampa-St.Petersburg-Clearwater, FL 15.4% 14.1% 14.5% 14.4% 14.8% 14.6% 15.2% 15.1%

Tucson, AZ 9.5% 11.5% 13.5% 13.3% 13.5% 14.0% 14.1% 14.3%

Tulsa, OK 18.6% 17.8% 17.4% 17.3% 17.6% 17.6% 17.5% 17.1%

Ventura County, CA 8.8% 12.9% 17.3% 17.1% 18.1% 17.4% 17.6% 17.6%

Washington, DC 7.2% 7.8% 10.0% 9.6% 10.3% 11.7% 11.5% 11.7%

Wichita, KS 14.9% 15.9% 17.5% 17.3% 18.0% 17.8% 17.4% 18.4%

Westchester, NY 16.4% 16.4% 16.4% 16.4% 16.4% 16.1% 17.5% 18.3%


p = preliminary

r = revisions * Vacancy = Direct + Sublet




2007 2008 2009 2009 Q2 2009 Q3 2009 Q4 2010 Q1r 2010 Q2p

(Quarterly Average)

United States $22.05 $22.69 $21.97 $22.08 $21.87 $21.63 $21.73 $21.56

Northeast $24.72 $25.32 $24.14 $24.31 $24.01 $23.60 $23.48 $23.31

Midwest $18.10 $18.53 $18.57 $18.55 $18.58 $18.55 $18.82 $18.54

South $20.63 $21.12 $20.86 $20.91 $20.77 $20.77 $20.81 $20.81West $24.98 $26.00 $24.45 $24.72 $24.28 $23.70 $23.59 $23.52

Albuquerque, NM $15.85 $16.44 $16.42 $16.40 $16.37 $16.58 $16.14 $16.27

Anaheim-Santa Ana, CA $30.77 $29.59 $26.32 $26.68 $26.16 $25.16 $24.83 $23.98

Atlanta-Sandy Springs-Marietta, GA $20.40 $20.90 $20.32 $20.34 $20.06 $20.10 $20.10 $20.03

Austin-Round Rock, TX $24.61 $25.83 $25.24 $25.27 $25.00 $25.19 $25.18 $24.87

Baltimore, MD $23.57 $23.36 $22.97 $23.37 $22.87 $22.58 $22.38 $22.86

Birmingham-Hoover, AL $17.81 $17.86 $17.93 $18.04 $17.88 $17.70 $17.75 $17.72

Boston-Cambridge, MA $30.62 $31.84 $30.08 $30.84 $30.26 $28.06 $27.76 $28.27

Bualo-Niagara Falls, NY $15.55 $15.60 $15.79 $15.70 $15.71 $16.08 $16.22 $16.33

Charleston-North Charleston, SC $19.82 $19.52 $19.10 $19.12 $19.21 $18.79 $19.34 $19.25

Charlotte-Gastonia-Concord, NC-SC $19.82 $20.38 $20.41 $20.73 $20.29 $20.15 $20.31 $20.05Chattanooga, TN-GA $14.96 $14.71 $14.73 $15.09 $14.61 $14.21 $14.19 $14.26

Chicago-Naperville-Joliet, IL $25.13 $25.84 $25.18 $25.38 $24.74 $24.82 $24.84 $24.70

Cincinnati-Middletown, OH-KY-IN $17.25 $17.57 $18.00 $18.03 $18.00 $17.89 $17.80 $17.82

Cleveland-Elyria-Mentor, OH $17.46 $17.65 $17.80 $17.74 $17.91 $18.05 $18.03 $18.19

Colorado Springs, CO $16.82 $16.95 $16.47 $17.00 $16.63 $15.17 $15.28 $15.35

Columbia, SC $15.16 $15.42 $15.69 $15.51 $15.85 $16.07 $16.05 $15.89

Columbus, OH $18.21 $18.79 $18.70 $18.80 $18.70 $18.51 $18.48 $17.54

Dallas-Fort Worth, TX $19.43 $20.01 $19.42 $19.41 $19.27 $19.26 $19.20 $18.94

Dayton, OH $18.43 $18.57 $18.57 $18.52 $18.64 $18.55 $18.67 $17.00

Denver-Aurora, CO $20.78 $21.72 $20.86 $20.98 $20.68 $20.35 $20.31 $20.28

Detroit-Warren-Livonia, MI $19.84 $19.48 $18.92 $18.92 $18.84 $18.77 $18.71 $18.72

Fairfeld, CT $31.61 $32.17 $31.58 $31.82 $31.49 $30.81 $29.95 $29.18Ft. Lauderdale, FL $25.68 $26.33 $25.33 $25.45 $25.32 $24.95 $25.24 $24.98

Greensboro-Winston-Salem, NC $15.36 $15.31 $15.39 $15.44 $15.46 $15.39 $15.24 $15.24

Greenville, SC $15.57 $15.55 $15.97 $15.79 $15.91 $16.39 $16.66 $16.18

Hartord, CT $19.93 $19.86 $19.49 $19.57 $19.27 $19.19 $19.16 $19.05

Honolulu, HI $19.98 $21.08 $23.57 $23.57 $24.54 $24.84 $25.53 $26.58

Houston-Baytown-Sugar Land, TX $21.62 $23.44 $23.32 $23.37 $23.14 $23.30 $23.64 $23.55

Indianapolis, IN $18.71 $20.49 $20.92 $20.75 $21.16 $21.19 $21.46 $21.20

Jacksonville, FL $18.05 $18.21 $18.28 $18.15 $17.91 $18.84 $18.04 $17.89

Kansas City, MO-KS $18.71 $19.16 $18.79 $18.94 $18.78 $18.57 $18.55 $18.46

Knoxville, TN $14.91 $15.60 $15.73 $15.73 $15.83 $16.10 $16.11 $15.94

Las Vegas-Paradise, NV $25.04 $25.19 $24.30 $24.67 $24.38 $23.14 $22.97 $22.77

Lexington-Fayette, KY $16.36 $16.40 $16.37 $16.32 $16.36 $16.52 $16.94 $16.82Little Rock-N. Little Rock, AR $14.92 $14.76 $14.59 $14.26 $14.36 $14.83 $15.03 $15.05

Los Angeles-Long Beach-Glendale, CA $31.21 $32.92 $31.11 $31.43 $30.76 $30.10 $29.80 $29.51

Louisville, KY-IN $14.91 $16.06 $15.84 $15.95 $15.86 $16.08 $16.16 $16.93

Madison, WI $15.61 $15.85 $16.15 $16.21 $16.12 $16.16 $16.56 $16.61

Memphis, TN-MS-AR $17.14 $17.63 $17.54 $17.47 $17.47 $17.52 $19.11 $18.96

Miami-Dade, FL $28.94 $30.82 $29.56 $29.57 $29.41 $29.21 $29.09 $28.78

Milwaukee-Waukesha-West Allis, WI $15.17 $15.33 $15.98 $15.88 $16.04 $16.18 $16.25 $16.30

Minneapolis-St. Paul, MN-WI $22.06 $23.07 $22.77 $22.73 $22.73 $22.70 $25.35 $24.65

Nashville-Davidson-Murreesboro, TN $18.66 $19.61 $19.79 $20.24 $19.78 $19.70 $18.05 $19.92

Asking Rents



12 | Cassidy Turley

Asking Rents

2007 2008 2009 2009 Q2 2009 Q3 2009 Q4 2010 Q1r 2010 Q2p

(Quarterly Average)

New Haven-Milord, CT $20.11 $20.34 $20.50 $20.63 $20.48 $20.75 $20.70 $20.43

New Orleans-Metairie-Kenner, LA $15.98 $15.95 $15.22 $15.13 $15.17 $15.38 $15.79 $15.51

New York, NY $61.15 $64.47 $52.68 $52.78 $51.42 $50.96 $50.41 $50.19

Long Island, NY $26.95 $27.17 $26.44 $26.51 $26.16 $26.37 $26.15 $26.41Northern New Jersey $27.17 $27.29 $26.45 $26.66 $26.33 $25.80 $25.53 $25.36

Central New Jersey $25.03 $25.07 $23.95 $24.08 $23.92 $23.62 $23.68 $23.48

Oakland-East Bay, CA $25.18 $25.75 $24.99 $25.32 $25.28 $23.93 $24.60 $24.58

Oklahoma City, OK $14.33 $14.02 $13.96 $13.97 $13.95 $13.96 $13.84 $13.69

Omaha, NE-IA $15.71 $16.13 $16.74 $16.40 $17.20 $16.99 $16.91 $16.92

Orlando, FL $21.47 $21.99 $21.31 $21.53 $21.12 $20.76 $20.33 $20.23

West Palm Beach-Boca Raton, FL $28.45 $29.00 $28.28 $28.54 $28.05 $27.55 $28.05 $27.89

Philadelphia-Camden, PA-NJ $22.86 $23.49 $23.44 $23.57 $23.35 $23.23 $23.23 $23.05

Phoenix-Mesa-Scottsdale, AZ $26.06 $26.07 $23.80 $23.88 $23.35 $23.00 $23.16 $23.03

Pittsburgh, PA $18.92 $19.24 $19.34 $19.29 $19.43 $19.29 $19.53 $19.49

Portland, ME $13.69 $14.34 $14.53 $14.39 $14.74 $14.72 $14.80 $14.49

Portland-Beaverton, OR-WA $20.47 $21.09 $20.84 $20.91 $20.96 $20.65 $20.55 $20.58Raleigh-Durham, NC $18.90 $19.46 $19.05 $19.00 $19.00 $18.85 $18.70 $18.70

Rochester, NY $14.56 $15.04 $14.81 $14.91 $14.84 $13.77 $14.02 $14.12

Sacramento, CA $23.40 $23.88 $22.80 $22.92 $22.68 $22.68 $22.32 $22.08

Saint Louis, MO-IL $18.70 $18.49 $18.62 $18.66 $18.52 $18.50 $18.77 $18.89

Salt Lake City, UT $17.49 $18.15 $18.08 $18.03 $18.11 $18.19 $18.00 $17.82

San Antonio, TX $18.21 $18.97 $18.98 $18.93 $18.81 $18.76 $18.99 $18.98

San Diego-San Marcos, CA $32.52 $32.85 $30.09 $30.00 $29.64 $28.92 $28.08 $27.96

San Francisco, CA $39.11 $41.43 $34.66 $36.77 $33.01 $31.07 $30.72 $30.82

San Jose-Sunnyvale-Santa Clara, CA $31.56 $35.52 $33.57 $34.20 $32.88 $31.80 $31.80 $31.20

San Mateo County, CA $36.78 $41.22 $33.39 $33.48 $32.76 $32.28 $31.20 $31.32

Seattle-Tacoma-Bellevue, WA $27.97 $30.27 $28.54 $28.82 $28.15 $27.26 $27.40 $27.27

Suburban MD $26.82 $27.15 $27.46 $27.49 $27.31 $27.18 $26.66 $26.52Suburban VA $30.89 $31.24 $29.74 $29.74 $29.68 $29.18 $29.30 $29.64

Syracuse, NY $14.55 $14.74 $14.58 $15.02 $14.07 $14.38 $14.16 $14.16

Tampa-St.Petersburg-Clearwater, FL $21.03 $21.48 $21.14 $21.32 $21.01 $20.84 $20.67 $20.61

Tucson, AZ $20.57 $21.11 $20.92 $21.05 $21.08 $20.32 $20.28 $20.18

Tulsa, OK $14.09 $14.49 $14.63 $14.63 $14.67 $14.56 N/A $15.63

Ventura County, CA $25.09 $26.23 $24.69 $24.85 $24.51 $24.08 $24.31 $24.22

Washington, DC $45.48 $47.60 $47.54 $47.40 $47.12 $47.83 $48.22 $48.39

Wichita, KS $11.83 $12.11 $12.11 $11.94 $12.04 $12.26 $12.27 $12.22

Westchester, NY $28.16 $29.18 $28.36 $28.86 $28.70 $27.03 $26.83 $25.71


p = preliminary




Inventory Vacant Stock Inventory Change YTD U/C (2010 Q2)

National Total 4,514,566,000 742,531,000 22,698,000 32,827,000

Albuquerque, NM 13,899,000 2,043,000 515,000 56,000

Anaheim-Santa Ana, CA 82,291,000 16,056,000 0 100,000

Atlanta-Sandy Springs-Marietta, GA 141,136,000 26,227,000 0 190,000

Austin-Round Rock, TX 40,221,000 7,376,000 30,000 91,000Baltimore, MD 70,347,000 13,647,000 413,000 1,372,000

Birmingham-Hoover, AL 18,270,000 2,237,000 0 22,000

Boston-Cambridge, MA 124,157,000 17,097,000 717,000 1,378,000

Bualo-Niagara Falls, NY 20,451,000 2,761,000 0 40,000

Charleston-North Charleston, SC 7,518,000 1,092,000 0 20,000

Charlotte-Gastonia-Concord, NC-SC 43,003,000 6,278,000 2,105,000 153,000

Chattanooga, TN-GA 4,790,000 859,000 54,000 0

Chicago-Naperville-Joliet, IL 243,626,000 42,923,000 608,000 575,000

Cincinnati-Middletown, OH-KY-IN 32,415,000 6,904,000 0 1,178,000

Cleveland-Elyria-Mentor, OH 34,973,000 6,469,000 44,000 63,000

Colorado Springs, CO 14,892,000 2,590,000 0 0

Columbia, SC 10,691,000 1,789,000 0 0Columbus, OH 26,514,000 4,812,000 100,000 522,000

Dallas-Fort Worth, TX 154,524,000 31,226,000 1,549,000 1,329,000

Dayton, OH 13,399,000 3,645,000 0 180,000

Denver-Aurora, CO 88,699,000 16,390,000 1,031,000 661,000

Detroit-Warren-Livonia, MI 75,050,000 18,712,000 84,000 407,000

Fairfeld, CT 58,147,000 12,502,000 500,000 475,000

Ft. Lauderdale, FL 27,021,000 4,819,000 0 0

Greensboro-Winston-Salem, NC 17,826,000 3,371,000 95,000 48,000

Greenville, SC 8,766,000 1,680,000 86,000 0

Hartord, CT 24,522,000 5,254,000 86,000 22,000

Honolulu, HI 26,183,000 1,892,000 385,000 0

Houston-Baytown-Sugar Land, TX 161,302,000 24,406,000 338,000 2,271,000Indianapolis, IN 31,963,000 6,968,000 87,000 140,000

Jacksonville, FL 24,800,000 4,896,000 0 89,000

Kansas City, MO-KS 46,936,000 9,716,000 35,000 171,000

Knoxville, TN 6,501,000 1,092,000 51,000 89,000

Las Vegas-Paradise, NV 25,628,000 6,086,000 0 611,000

Lexington-Fayette, KY 4,718,000 795,000 0 0

Little Rock-N. Little Rock, AR 10,002,000 1,234,000 0 49,000

Los Angeles-Long Beach-Glendale, CA 195,352,000 26,289,000 65,000 27,000

Louisville, KY-IN 20,145,000 2,961,000 0 0

Madison, WI 22,062,000 2,142,000 0 0

Memphis, TN-MS-AR 19,329,000 3,658,000 50,000 0

Miami-Dade, FL 41,932,000 6,479,000 1,495,000 1,070,000Milwaukee-Waukesha-West Allis, WI 31,061,000 5,249,000 0 130,000

Minneapolis-St. Paul, MN-WI 70,843,000 14,452,000 33,000 0

Nashville-Davidson-Murreesboro, TN 33,922,000 4,987,000 369,000 42,000

New Haven-Milord, CT 11,707,000 1,973,000 146,000 0

New Orleans-Metairie-Kenner, LA 35,503,000 3,228,000 32,000 110,000

New York, NY 449,068,000 57,481,000 3,244,000 5,328,000

Long Island, NY 70,228,000 11,798,000 0 0

Northern New Jersey 146,410,000 19,326,000 137,000 20,000

Central New Jersey 103,895,000 17,143,000 68,000 0

Inventory



14 | Cassidy Turley

Inventory

Inventory Vacant Stock Inventory Change YTD U/C (2010 Q2)

Oakland-East Bay, CA 67,407,000 12,133,000 0 0

Oklahoma City, OK 17,282,000 2,942,000 41,000 1,996,000

Omaha, NE-IA 17,596,000 2,748,000 224,000 85,000

Orlando, FL 32,546,000 5,494,000 376,000 195,000

West Palm Beach-Boca Raton, FL 23,414,000 4,458,000 132,000 479,000Philadelphia-Camden, PA-NJ 111,517,000 15,662,000 214,000 663,000

Phoenix-Mesa-Scottsdale, AZ 67,617,000 18,662,000 924,000 274,000

Pittsburgh, PA 49,138,000 7,694,000 102,000 698,000

Portland, ME 18,157,000 1,633,000 0 19,000

Portland-Beaverton, OR-WA 41,025,000 5,948,000 453,000 315,000

Raleigh-Durham, NC 46,087,000 9,056,000 0 77,000

Rochester, NY 15,103,000 2,436,000 229,000 0

Sacramento, CA 82,588,000 13,627,000 181,000 0

Saint Louis, MO-IL 50,701,000 6,845,000 -34,000 770,000

Salt Lake City, UT 30,020,000 4,346,000 262,000 555,000

San Antonio, TX 27,941,000 4,748,000 266,000 482,000

San Diego-San Marcos, CA 72,244,000 14,665,000 32,000 273,000San Francisco, CA 84,014,000 13,442,000 0 187,000

San Jose-Sunnyvale-Santa Clara, CA 72,432,000 13,298,000 562,000 0

San Mateo County, CA 31,661,000 5,414,000 0 0

Seattle-Tacoma-Bellevue, WA 81,718,000 13,932,000 1,368,000 2,644,000

Suburban MD 74,986,000 11,375,000 0 362,000

Suburban VA 152,373,000 21,837,000 270,000 806,000

Syracuse, NY 12,594,000 1,641,000 60,000 0

Tampa-St.Petersburg-Clearwater, FL 41,327,000 6,221,000 127,000 88,000

Tucson, AZ 5,843,000 836,000 40,000 259,000

Tulsa, OK 20,103,000 3,446,000 0 95,000

Ventura County, CA 8,243,000 1,452,000 0 145,000

Washington, DC 121,164,000 14,176,000 2,317,000 2,331,000

Wichita, KS 8,611,000 1,581,000 0 0

Westchester, NY 42476000 7,773,000 0 0


p = preliminary

** © Reis Services, LLC 2009 4Q

Reprinted with the permission o Reis Services, LLC

All rights reserved.




Methodology

Methodology

Cassidy Turley’s quarterly estimates are derived rom a variety o data sources, including its

own proprietary sample o market activity, historical and current inventory data rom Reis

LLC, Bureau o Labor Statistics Employment data, and other third party data sources. The

market statistics are calculated rom a base building inventory made up o oce properties

deemed to be competitive in the local oce markets. Generally, owner-occupied andederally-owned buildings are not included. Single-tenant buildings and privately-owned

buildings in which the ederal government leases space are included. Older buildings unt

or occupancy or ones that require substantial renovation beore tenancy are generally not

included in the competitive inventory. Vacant space is dened as space that is available

immediately or three months (90 days) ater the end o the quarter. Sublet space still

occupied by the tenant is not counted as available space.

The gures provided or the current quarter are preliminary, and all inormation contained in

the report is subject to correction o errors and revisions based on additional data received.

Explanation o Terms

Total Inventory: The total amount o oce space (in buildings greater than 10,000 square

eet) that can be rented by a third party.

Total Space Available: The sums o new, relet, and sublet space that is unoccupied and

being actively marketed.

Vacancy Rate: The amount o unoccupied space (new, relet, and sublet) expressed as a

percentage o total inventory. (Total Unoccupied Space divided by Total Inventory.)

Absorption: The net change in occupied space between two points in time. (Total occupied

space in the previous quarter minus total occupied space in the present quarter, quoted on

a net, not gross, basis.)

Eective Rents: Gross average asking rents - average concessions.

Disclaimer

This report and other research materials maybe ound on our website at www.cassidyturley.

com. This is a research document o Cassidy

Turley in Washington, DC. Questions related

to inormation herein should be directed to

the Research Department at 202-463-2100.

Inormation contained herein has been

obtained rom sources deemed reliable and

no representation is made as to the accuracy

thereo. Cassidy Turley is one o the largest

commercial real estate service providers

in the U.S., with 420 million square eet o

managed space in 58 locations and $13

billion in completed transactions or 2009.



cassidyturley.com

KeyStatistics

• 58 oces

• 72 international oces*

• 2,800 associates

• 900 brokers

• 2009 transactions

– Gross transaction volume$13 billion

– Gross capital marketsvolume $4.1 billion

• 420 million s propertymanagement portolio

• 25,000+ Corporate Services

locations and 152 million s

*Through GVA Grimley Partnership

We are Cassidy Turley

One o the nation’s largest commercial real estate services rms, Cassidy Turley enjoys a

history o 100 years o successul client relationships. Our team o proessionals is dedicated

to consistently delivering integrated, tailored solutions that produce superior results andchampion your business goals. We become your partner and advocate, and are passionate

about achieving long-term success on your behal.

Real Market Knowledge

• In every market where we do business, we have in-depth, local market knowledge that

enables us to advocate eectively or our clients

• Many o our associates have honed their skills in their respective markets or years, and

even decades.

Real Connections

•

Our proessionals have deep ties to our communities and our industry, which givesCassidy Turley a competitive advantage when it comes to really understanding what the

market is doing—and more importantly where it is heading.

• In order to better serve our clients’ needs in EMEA and Asia Pacic, Cassidy Turley is

proud to partner with GVA Grimley, a respected market leader in its geographies.

Real Passion

• In a partnership with Cassidy Turley, you gain a champion who will be as ocused on

advocating your goals as you are.

• We believe in long-term, person-to-person relationships and an unwavering

commitment to our clients’ success.

Real Results

• We believe that hands-on problem solving is undamental, and we are committed to

delivering integrated, tailored solutions that provide maximum, measurable outcomes.

• You can depend on us or world-class expertise, service and execution, wherever you do

business.

ct national report 2q10

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